NYC-based PIRA Energy Group reports that May WTI price rises as Cushing crude stocks fall. In the U.S., commercial stocks reach another new record level, even as surplus falls. In Japan, crude runs continue dropping with higher stocks. Specifically, PIRA’s analysis of the oil market fundamentals has revealed the following:

May WTI Price Rises as Cushing Crude Stocks Fall

The rebound in crude prices continued in May, with WTI averaging nearly $60/Bbl and exceeding that level on several occasions. Crude balances remained tight in Canada and West Texas, and stocks began to decline from record high levels in Cushing and the Rockies. Most price differentials were little changed, remaining near or slightly above pipeline parity, except for heavy Canadian grades, which continued to strengthen on heavy demand and late-month wildfires.

U.S. Commercial Stocks Reach Another New Record Level, Even as Surplus Falls

Total commercial stocks built a combined 7.4 million barrels this week, but still built less than this week last year, so the year-over-year surplus narrowed. Demand fell about 1.1 million barrels a day this week, reflecting a similar fall last year, most likely influenced by the Memorial Day holiday. The total commercial stock level was a new record high.

Japanese Crude Runs Continue Dropping with Higher Stocks

Crude runs dropped another 89 MB/D, with a big reduction in the crude import rate such that the crude stock build was limited to 1.6 MMBbls. Finished product stocks rose primarily due to builds in naphtha and fuel oil with a lesser rise in kerosene. Gasoline stocks built slightly and gasoil stocks drew. The indicative refining margin remains good but slightly lower on the week due to narrower light product cracks but better fuel oil cracks.

2015 Iraq Oil Monitor

Rhetoric is escalating between Baghdad and the KRG over alleged noncompliance with the export- and revenue-sharing agreement. The need for revenue is expected to drive cooperation for now, but risks to the deal are rising. The fight against ISIS does not present an imminent danger to Baghdad or southern production, but the growing role of Shiite militias in Anbar province threatens to exacerbate sectarian tensions. Investment cuts could endanger anticipated production ramps, but new infrastructure and segregation of crude grades at Basrah should facilitate higher exports starting in June.

EIA’s Upwardly Revised U.S. Monthly Crude Production Not Necessarily Bearish

The recent upward revisions to monthly and weekly crude production data caught analysts off guard. We do not think this is a bearish development, however, because the offsetting decline to the crude balance item, following the upward revisions to crude production, minimizes the bearish impact of the higher reported production numbers. March crude stocks and stock change were revised down, not up, in spite of the highest reported monthly crude production since 1970.

OPEC

OPEC met to roll over the existing agreement. Efforts to have a non-OPEC/OPEC output cut have been thwarted by Russia’s unwillingness to participate. The recent strength in oil prices over the last month has reduced pressure for this initiative. The Gulf OPEC members see strong demand for their crude and expect prices to strengthen to end year with $75/Bbl Brent a distinct possibility.

Ethanol Prices Fall

U.S. ethanol prices tumbled the week ending May 29 pressured by higher production and lower corn values. The EPA's bearish announcement of proposed biofuel mandates added to the decline.

Ethanol Output Increases

U.S. ethanol production continued to advance the week ending My 29, rising to a four-month high 972 MB/D from 969 MB/D in the prior week. Inventories were essentially flat, declining by only 29 thousand barrels to 20.1 million barrels.

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.

Delmar Systems, a world leader in mooring and subsea operations, has created a new R&D team dedicated to developing innovative mooring and subsea technology. Delmar has a long history of designing specialized equipment and tools to improve safety and efficiency in the offshore oil and gas industry, including the Delmar subsea connector, chain chaser stoppers, synthetic rope handling equipment, the OMNI-Max® anchor, and the recent Delmar Quick Release. Customized software, such as the recently developed Del-3DM used for 3D simulation of rig moves and other installation activities, is also within the scope of the new group. “We already have several new and exciting development projects underway to address the needs of temporary and permanent moorings in key market areas around the globe,” said John Shelton, Delmar’s Engineering Manager.

Establishment of the R&D team will allow Delmar Systems to address our customer and market technology needs in the mooring and subsea fields with a full-time dedicated and focused effort.

Headquartered in Broussard, LA with technical services based in Houston, TX, Delmar System, Inc. has provided mooring and subsea installation services for over 47 years to every oil and gas region around the globe, with offices strategically located to serve the offshore industry in the world’s most challenging offshore environments.

Jee Ltd, a leading independent multi-discipline subsea engineering and training firm, has completed a contract with Decom North Sea (DNS), the representative body for the decommissioning industry, to identify pioneering methods of salvage and re-use options for concrete subsea mattresses.

The aim of the project, which commenced in February 2015 and saw Jee Ltd partner with DNS and Zero Waste Scotland (ZWS), was to identify innovative new solutions for subsea mattress removal which would work without diver interventions during the lift procedure, resulting in improved safety and reduced costs.

Mattress recovery operation

Nigel Jenkins, DNS Chief Executive explains the background to the contract: “This project was implemented in direct response to our operator member requests and Jee’s findings have been eagerly anticipated. Mattress removal can add significant costs to decommissioning projects hence we are keen to establish a variety of solutions to further drive efficiency.”

Adam Smith, Subsea Engineer at Jee Ltd, presented the findings at an event hosted jointly by DNS and ZWS at the Aberdeen Exhibition & Conference Centre yesterday (Thursday 28 May). Around 100 oil and gas professionals came together to discuss the key findings of the report and how they will improve industry best practise and the circular economy.

Discussing the project, Adam Smith said: “The significant cost of removing and disposing of aged subsea mattresses is an issue affecting the industry globally. Identifying innovative new methods to support the decommissioning sector is high on the industry’s agenda, and DNS’s highly-attended event is the ideal platform to showcase the results from the project.”

Adam Smith said: “Jee’s team of experienced engineers are at the forefront of supporting innovative new research projects to support the sustainability of the industry. Working with two highly-regarded industry bodies on a key investigative project highlights Jee’s expertise in the field and long history of delivering results.

“Our research played a key role in this project, which will form a basis for economic and environmental assessment of mattress conditions and the options for removal and re-use going forward. We also helped to identify the criteria required to determine whether subsea mattresses should be removed or left in situ, the main consideration being the safety of the subsea divers and the environmental impact.”

Jee developed a number of innovative suggestions for the re-use of the mattress concrete including tidal lagoons structures, the construction of artificial reefs to encourage new sea life and to lay road foundations, resulting in less new concrete needed to be produced and as a result, reduced carbon dioxide emissions.

Commenting on the findings, Iain Gulland, Chief Executive, Zero Waste Scotland, said: “This joint report has some fascinating insights about how we go about extending the useful life of subsea concrete mattresses. I am sure it will be of great interest to all those in the oil and gas industry and beyond. The findings point to some exciting cross-over potential with other sectors, such as offshore renewables. Circular economy practices present a terrific economic opportunity for Scotland and we can best realize this by collaborating across sectors and industries.”

Jee is an independent subsea engineering and training company with offices in Aberdeen, London and Tonbridge. Jee’s multi-disciplined capabilities and integrated services, cover the spectrum of subsea engineering for the global oil, gas and renewables industries.

Revolutionizing subsea field architecture from concept delivery and beyond

FMC Technologies, Inc. and Technip have announced that Forsys Subsea, a 50/50 joint venture, has received all regulatory approvals. The parties closed the transaction making Forsys Subsea operational on June 1, 2015.

Forsys Subsea is a joint venture formed as part of a broader alliance between FMC Technologies and Technip that unites the skills and capabilities of two subsea leaders to redefine the way subsea fields are designed, delivered and maintained.

By combining the industry-leading technologies of the parent companies, Forsys Subsea will reduce the interfaces of the subsea umbilical, riser and flowline systems (SURF) and subsea production and processing systems (SPS). It will also simplify the seabed layout, thereby reducing complexity, accelerating time to first oil, and enabling higher sustainable field production. This unique combination will drive a new, step-change approach to how equipment designs and installation methods converge in a new generation of subsea architecture.

Forsys Subsea CEO, Rasmus Sunde said, "With Forsys Subsea we are launching an exciting and compelling business proposition by providing front-end engineering and life-of-field decision support to our customers. Based on this, we will enable customers to take advantage of lower costs, reduced execution time and execution risks, and higher uptime of the installed base by leveraging the combined technologies and execution capabilities of the parent companies."

The company is headquartered in London, with regional hubs in Houston, Oslo, Paris, Rio de Janeiro and Singapore.

The Forsys Subsea leadership team includes Rasmus Sunde (FMC Technologies) as CEO, Alain Marion (Technip) as Chief Technology Officer, Arild Selvig (FMC Technologies) as Senior Vice President and Head of Front-End Engineering, and Gerald Bouhourd (Technip) as Senior Vice President and Head of Life of Field.

Despite surging production from U.S. shale plays, the scale of long-term production remains uncertain, leading to the question of where will be the next major play? Attention is being focused on Arctic Alaska, where reserves are waiting to be exploited. Geologists estimate total Arctic oil reserves of nearly 134bn BOE, 28% of which lie in US territory, and some 39bn BOE of natural gas. So what’s the catch?

Early last week, hundreds of “kayaktavists” blocked the entrance to Seattle’s port where Shell docked its Arctic bound Polar Pioneer drilling rig. The activists are concerned with the environmental impact and risks of Arctic drilling. Wilderness experts say there is a 75 percent chance of at least one large spill occurring in the Chukchi Sea over the next six decades. Shell’s initial exploration attempts in 2012, ending with the Kulluk drilling rig running aground, increased concern over the safety and potential environmental impact of the drilling activity.

With high depletion rates and uncertainty around the long-term ability of unconventional production to meet growing demand, Alaska is of strategic importance. In the longer-term, Alaska has the production potential to maintain US crude supply for decades to come. And Alaska needs the revenues. This future supply, however, depends on decisions made now. It takes years to acquire a permit and begin production in Alaska due to difficult conditions and non-existent infrastructure. Shell expects environmental approvals will delay production till the 2030s.

Other nations, such as Russia are moving forward with Arctic drilling and China is ‘ready to assist’. U.S. reserves, however, remain untapped as the “Paddle in Seattle” protest attempts to derail Shell’s efforts for Alaska exploration. Shell has sunk over $6 billion in preparing to recover oil with plans to drill up to four exploratory wells over two years in the Chuchki Sea. Shell’s drilling program this year could determine the future of Alaskan and US crude supply over the coming decades.

www.douglas-westwood.com

NorSea Group (UK) Limited has established a new executive team to lead the company’s growing activity across Scotland. Walter Robertson has been appointed Managing Director while Mike Munro becomes the company’s first Operations Director.

Caption: Walter Robertson, left, and Mike Munro

Walter has 30 years’ experience in the logistics sector and was appointed MD following an extensive period of consultancy with the company. Prior to that, he had a 28 year career with the ASCO Group at Managing Director level. From 1998 to 2006, as MD of Enviroco Ltd, he oversaw the establishment and running of the company which was set up as a joint venture to provide environmentally focused waste management solutions to the UK Oil and Gas industry.

As Operations Director, Mike will be responsible for all operational activity at NorSea Group (UK)’s logistics bases at Aberdeen, Montrose, Peterhead and Scrabster harbours. He has a wealth of marine and logistics experience at senior level on projects in the UK and overseas. Prior to joining NorSea Group he spent seven years with Peterson (United Kingdom) Limited, as Divisional Operations Manager based in Aberdeen but spent a lot of time developing the company’s overseas business in the international market. Having spent 23 years with Total E&P, Mike spent eight years in the Middle-east with Qatar Petroleum before returning to Aberdeen.

The company will make further announcements about additional appointments to the executive team within the next few weeks.

“Despite the current market conditions, we are excited about the opportunities for growth and development that are being presented to NorSea Group (UK),” said Walter. “We are principally known as an offshore logistics and base services company, supporting the Oil & Gas and renewables sectors however, we are expanding our areas of activity with a strong focus on the “small piece” decommissioning market. We have already secured a major decommissioning contract, which is being serviced through our deep-water support base at Smith Quay in Peterhead, this being a first for North-East Scotland. We are actively tendering for other opportunities in this growing sector of the market.”

Mike said: “I’m looking forward to working with Walter to develop NorSea Group’s decommissioning activity. From our four principal bases we are well placed to support projects right around the north and east coasts from the area West of Shetland right through the Northern and Central North Sea.”

NorSea Group (UK) was established as the UK wing of its Norwegian parent company NorSea Group in 2013 when it opened its first office in Aberdeen. Since then there has been significant growth in the company’s business activity in the UK. In addition to establishing a presence in Aberdeen, NorSea Group acquired Danbor Ltd. the leading Danish offshore logistics company and their UK assets are now incorporated into NorSea Group (UK).

NorSea has a long term agreement with Scrabster Harbour Trust, a 15-year lease at South Quay in Montrose and in Q3 2014 made a major move into Peterhead by taking operatorship of Smith Quay and Embankment at Peterhead on a 10-year agreement. This is phase 1 of a 3 phase development that will see expansion onto Merchants Quay and provide 400m of deep-water quayside berthing supported by over 50,000m2 of quayside laydown area.

In 2014, the company also moved to new premises at NorSea Group House in Altens, providing the company with its own 4,000m2 warehouse, 15,000m2 concreted yard and 800m2 of office space.

W&T Offshore, Inc. (NYSE: WTI) has announced a new discovery at Ewing Banks 910 and first production from the SS #6 well at Mississippi Canyon 538 field ("Medusa"), both in the deepwater of the Gulf of Mexico. The Company also provided an update on the status of the Big Bend and Dantzler deepwater development projects.

W&T made a new discovery at Ewing Banks 910 with the successful drilling and evaluation of the Ewing Banks 910 A-5 ST well. The Company logged 160 feet of gross hydrocarbon interval and is currently completing the well. We expect recovery from the well to exceed our pre-drill estimates and we anticipate that the well could be online and flowing by the end of the second quarter. W&T has a 50% working interest in this well.

The next well to be drilled at Ewing Banks 910 will be the A-8 exploration well, which based on seismic data, is estimated to be a significantly larger reserve target than the recently successful A-5 ST well. We have additional drilling locations in the area as a result of our ongoing geological and geophysical review of new WAZ seismic data.

The Company is also pleased to announce that the recently drilled Medusa SS #6 well has been completed and achieved first production flowing at a gross rate of approximately 8,000 barrels of oil and 6 MMcf of natural gas for a combined total rate of 9,000 barrels of oil equivalent per day. A second extension well at Medusa, the SS #7 well, is currently being completed. W&T has a 15% working interest in the Medusa field.

Excellent progress is being made on the work to bring the Mississippi Canyon 698 "Big Bend" and Mississippi Canyon 782 "Dantzler" fields on line. Three vessels are currently in the field, with one performing umbilical installation work, one conducting sea trials before the pipeline system is installed and another serving as a flotel for the preparation of the topside facilities at "Thunderhawk," the host platform. Production from Big Bend is expected to commence in the fourth quarter of 2015 and production from Dantzler is now expected to commence near the end of 2015. This is slightly ahead of prior scheduling. The anticipated combined rate from Big Bend and Dantzler is expected to reach in excess of 8,000 barrels of oil equivalent per day, net to our 20% working interest (81% oil).

Leading standby vessel operator Atlantic Offshore Rescue has unveiled the third new vessel in the past 12 months as part of its fleet modernisation program, representing an investment totaling £300 million.

Ocean Falcon, a brand new Class A Multi Role and Emergency Response and Rescue (MRV/ERRV) vessel was christened at a ceremony at Aberdeen harbor , before commencing a contract with a major UK operator. Atlantic Offshore Rescue will provide emergency recovery, rescue cover, tanker assistance and general field support for offshore operations at the Curlew Field, in the North Sea.

The ship can accommodate 21 employees, and has the amenities to rescue up to 300 people. As well as incorporating the very latest technology systems including a towing capacity of up to 65 tons, it measures 66.80 meters in length and 16 meters beam and features two MAN main engines with a power of 1935 kW each.

Ocean Falcon, the latest vessel to be launched, as part of Atlantic Offshore Rescue’s 300 million fleet modernization program.

Ocean Falcon is a new H820 design from Havyard Ship Design. It was built and developed in Passai, Spain by Zamakona shipbuilders, in close collaboration with Atlantic Offshore Rescue over an 18 month period. Its sister ships, Ocean Tay and Ocean Osprey were launched in February and May 2014, respectively.

Matthew Gordon, managing director of Atlantic Offshore Rescue, said: “We are immensely proud to unveil Ocean Falcon, the third vessel to be launched as part of our extensive modernization strategy. The vessel incorporates cutting edge technology, and it is due to this and the expertise and professionalism of our team that we have secured a lucrative contract with an oil and gas operator.

“We are trailblazing the way for emergency support vessels in the North Sea and this program is part of our vision for strategic growth and commitment to offer the very best FSV and ERRVs to existing and potential clients, a vital assurance for offshore operations within the energy sector.”

The new vessel has secured 30 jobs and is one of 11 ERRVs managed by the company from its new 12,000 sq ft Aberdeen base at Waterloo Quay. The move, which took place earlier this year, totals an investment of £3.5 million over a ten year lease period.

Mr. Gordon continued: “Moving into our new premises was is a real milestone in our history, and already marks a very successful year for Atlantic Offshore Rescue. Having outgrown our previous office we now have the capacity to accommodate future growth in the coming months and years. Being so close to Aberdeen harbour, we are also in a position to increase operational efficiency and better serve clients.”

Atlantic Offshore Rescue is part of the Atlantic Offshore Group, which is based in Norway. Atlantic Offshore Rescue Ltd employs 350 people (approximately 330 seamen and 20 office-based staff) and provides multi-role offshore and emergency rescue and response vessels for many of the oil majors operating in the North Sea.

Inclusive of Atlantic Offshore Rescue’s 11 vessels, Atlantic Offshore Group currently operates a fleet of 22 ERRVs and Platform Supply Vessels (PSVs) and manages further PSVs on behalf of third parties.

The Group’s aim is to continue to expand its capabilities within both the Norwegian and British sector of the North Sea and to be able to provide cross-border solutions reflecting the needs of its clients.

Fugro has been awarded a large geotechnical and geophysical (G&G) program by ExxonMobil Alaska LNG LLC (AKLNG - a consortium of ExxonMobil, ConocoPhillips, British Petroleum, TransCanada and the State of Alaska). The 2015 G&G program follows successful completion of a similar but smaller program carried out by Fugro in 2014.

The geotechnical scope of work includes drilling and sampling of borings for the onshore liquefaction facilities, marine terminal and offshore pipelines. It also includes installation of monitoring wells, seismograph and in situ measurement of soil properties. The geological and earthquake engineering scope will include assessment of geohazards, source characterization, probabilistic seismic hazard and site response analyses. Bathymetric, side scan sonar, reflection and refraction surveys and sub-bottom profiling will also be conducted to assist in developing an integrated site model. These studies will assist AKLNG and its contractors to proceed with the FEED level design of the LNG terminal and associated offshore pipelines.

As world leader in geohazards both onshore and nearshore, as well as geotechnical, geophysical, metocean and surveying services for LNG facilities, Fugro also provides worldwide quality assurance and quality control services during project construction phases.

AnTech Ltd has held a day of celebration to recognise successes throughout the company. Last week, over 50 staff and guests gathered to celebrate over 115 years of long service, international patents and internal departmental achievements at the company’s head office in Exeter.

AnTech’s in-house team organised and designed awards to commemorate individuals that have helped bring the company to its success.

The event celebrated 11 loyal and dedicated employees who have all reached milestones within the company, beginning at five years’ service and with the longest serving member of the team achieving 17 years’ service. Certificates were also awarded to the engineers whose work on the AcrobatTM Gyro has been internationally patented.

Special guest and MasterChef finalist Pete Hewitt was in attendance and helped mark the occasion by cooking a specially created dinner.

Toni Miszewski, Managing Director, AnTech said: “We are incredibly proud to have such an established team at AnTech, their loyalty is a fundamental factor in the company’s continued success. We are lucky enough in this area to have access to an impressive, local talent pool and I feel it’s important that employers can foster it.”

“A number of those celebrating long service awards initially joined AnTech as student placements, who returned to us on a full time basis after graduation – which we believe is testament to the support and opportunities within the company.”

AnTech also has been shortlisted as a national finalist in the Technology Innovation of the Year Award category at this years’ UK Private Business Awards, which celebrates the best of UK private businesses and their contribution to the UK economy.

The company is proud of its committed workforce and look forward to other team members achieving long-service status. For more pictures and a round-up of social media from the day, visit AnTech’s social media channels.

Founded in 1992, AnTech operates across two divisions, providing innovative product technologies, directional coiled tubing drilling services and specialist training for the global upstream oil and gas industry both in onshore and offshore environments. Headquartered in Exeter, AnTech has doubled in size, in terms of personnel and space and is the only company in the world solely dedicated to Coiled Tubing Drilling.

McDermott International, Inc. (NYSE:MDR) announces that it has been awarded a large brownfield contract by Saudi Aramco for the engineering, procurement, construction and installation (EPCI) of twelve jackets for offshore oil and gas fields in Saudi Arabian waters. Work is scheduled for completion by the end of the first quarter of 2016 and will be included in McDermott’s second quarter 2015 backlog.

This is the second award McDermott has received in 2015 from Saudi Aramco and represents work scope bid under an existing Long-Term Agreement. In March 2015, the client awarded McDermott a brownfield contract for a power supply system replacement that utilizes McDermott’s full EPCI expertise.

“The project called for an extremely responsive bid phase and for fast-track execution,” said Tom Mackie, McDermott’s Vice President, Middle East. “Our ability to provide schedule certainty — through the provision of integrated EPCI services combined with the right technical solution to meet the challenging time constraints — was key to winning the project.”

Engineering and procurement is expected to be performed by McDermott’s teams in Dubai, U.A.E., and Al Khobar, Saudi Arabia. The jackets are scheduled for fabrication by McDermott’s Dubai, U.A.E.-based fabrication facility. Vessels from the McDermott global fleet are scheduled to undertake the installation work.

Maersk Drilling is live on IFS Applications and will continue the rollout and further development of advanced maintenance planning functionality in collaboration with IFS

IFS, the global enterprise applications company, announces that Maersk Drilling has signed an agreement for the development of new advanced maintenance planning functionality. The agreement includes additional licenses worth approximately $1.8 million US.

In October 2012, IFS announced that Maersk Drilling signed an agreement for the deployment of IFS Applications as its ERP system.

With Maersk Drilling’s ERP implementation going into the roll-out phase, Maersk Drilling and IFS have agreed to extend the companies’ collaboration—both in the ongoing ERP roll-out program and as partners developing new advanced maintenance planning functionality.

“We are seeking ways to increase efficiency, improve quality and reduce operational cost,” Maersk Drilling CIO, Jesper K Hansen said. “And with IFS Applications, we are set to use ERP as one of the enablers striving for operational excellence.”

IFS Scandinavia CEO Glenn Arnesen said, “There is no doubt that the partnership with Maersk Drilling has improved IFS’s position in the oil and gas service market. We are very pleased to enhance our partnership to support Maersk Drilling with their plans going forward.”

The IFS solution purchased by Maersk Drilling in 2012 includes components for financials, project management, supply chain management and maintenance.

The International Well Control Forum (IWCF), the independent organization that sets international well control standards, has appointed David Conroy as its first Chief Technical Officer (CTO).

Based at the organization’s UK headquarters, Mr. Conroy will be developing this new role to lead changes to the technical aspects of IWCF’s services, including exam quality, program development, curriculum and training.

Mr. Conroy has 20 years’ experience in the international oil and gas industry. He will join IWCF in July from Schlumberger where he has held a variety of positions for over 10 years’, latterly serving as Drilling & Drilling Engineering Director of Curriculum in Dubai.

Commenting on his appointment, Mr. Conroy said: “During these challenging times within the oil and gas industry, I am very much looking forward to working within IWCF. I anticipate that we will continue to make significant changes in what we teach within the well control curricula, including rotary and intervention, as we continue to adopt and implement the recommendations from OGP.

“In tomorrow’s world, I believe we should be more globally adaptive, seeking new learning environments in teaching to assure increased competency. My passion is to further assist adults in actively developing their required skill levels for progressive career development, which is so crucial to the industry. Finally, assisting IWCF to update the tools we use to assess personnel competencies at all levels will be a critical function for me in this new role.”

Mr. Conroy holds a PhD in Geology from The Queen’s University of Belfast, which initially led him to roles in geological surveying. Since joining the oil and gas industry in Aberdeen, he has worked in a variety of positions in Norway, Oman and Houston.

IWCF has recently invested in new facilities at its headquarters in Montrose, UK to improve training for well control assessors and instructors who address drilling operations and well intervention activities. The organization is actively recruiting for new members, anyone who is interested in having a say in well control safety should click here for more information.

Major oil and gas companies BG Group plc, BP plc, Eni S.p.A., Royal Dutch Shell plc, Statoil ASA and Total SA, have announced their call to governments around the world and to the United Nations Framework Convention on Climate Change (UNFCCC) to introduce carbon pricing systems and create clear, stable, ambitious policy frameworks that could eventually connect national systems. These would reduce uncertainty and encourage the most cost effective ways of reducing carbon emissions widely.

The six companies set out their position in a joint letter from their chief executives to the UNFCCC Executive Secretary and the President of the COP21. This comes ahead of the UNFCCC’s COP21 climate meetings in Paris this December.

With this unprecedented joint initiative, the companies recognize both the importance of the climate challenge and the importance of energy to human life and well-being. (Photo: Harald Pettersen)

They acknowledge the current trend of greenhouse gas emissions is in excess of what the Intergovernmental Panel on Climate Change says is needed to limit global temperature rise to no more than 2 degrees Centigrade, and say they are ready to contribute solutions. As the chief executives write:

“Our industry faces a challenge: we need to meet greater energy demand with less CO2. We are ready to meet that challenge and we are prepared to play our part. We firmly believe that carbon pricing will discourage high carbon options and reduce uncertainty that will help stimulate investments in the right low-carbon technologies and the right resources at the right pace. We now need governments around the world to provide us with this framework and we believe our presence at the table will be helpful in designing an approach that will be both practical and deliverable.” (Helge Lund, BG Group Plc; Bob Dudley, BP plc; Claudio Descalzi, Eni S.p.A.; Ben van Beurden, Royal Dutch Shell plc; Eldar Sætre, Statoil ASA; Patrick Pouyanné, Total S.A.).

The chief executives have also sent an additional letter to the media, setting out this position on carbon pricing and also the role that natural gas can play in reducing carbon emissions.

Global operator in the subsea inspection, repair and maintenance sector (IRM), Harkand, has successfully completed its first campaign in the Caribbean for BG Trinidad & Tobago.

The 75-day ROV subsea support services project was concluded at the start of March by the team on board Harkand’s multi-purpose vessel the Go Electra in the waters off Trinidad and Tobago.

The workscope included carrying out ultrasonic technology scans, free span pipeline rectification work, subsea control module change outs, and the supply and installation of anode pods and clamps at various locations throughout the North Coast Marine Area (NCMA) and East Coast Marine Area (ECMA) of Trinidad and Tobago.

Harkand Europe managing director David Kerr said: “We enjoy a very good relationship with BG and we are pleased to have carried out this scope of work to meet their requirements in Trinidad and Tobago, especially at this challenging time of year which is out with the usual IRM weather season in the region.

“The success of this campaign was down to the collaboration on board the Go Electra with our personnel working closely with BG Trinidad & Tobago to ensure the work was delivered safely and effectively. It is a testament to this collaborative working relationship that only five days’ weather related downtime was experienced out of the 75 day campaign.

“Our initial mobilization was efficient with all personnel and equipment clearing customs without delay. We are also delighted to have utilized local content on this project which included ROV pilot technicians, stewards and riggers.”

Harkand provides offshore vessels, ROVs, diving, survey services, project management and engineering to the oil and gas and renewables industries. Headquartered in London with operations bases in Aberdeen, Houston, Mexico and Ghana, Harkand aims to be the leading subsea IRM and light construction contractor globally.

BMT Asia Pacific (BMT), a subsidiary of BMT Group Ltd, has been appointed Owners Engineer and lead design consultant by Endeavour Energy for the development of the LNG storage and regasification facility, a part of the Ghana 1000 Gas to Power Project and Africa’s first LNG import terminal.

Excelerate FSRU vessel “Exquisite” Courtesy Excelerate Energy

Endeavour is co-leading development with General Electric, Eranove and local partners Sage Petroleum with the aim of providing the Ghanian government with Sub Saharan Africa’s largest power park, providing more than 1000MW to the national grid once completed. Excelerate Energy is providing assistance in siting the floating LNG terminal infrastructure, engineering and providing the dedicated floating LNG regasification vessel - FSRU (Floating Storage Regasification Unit) to supply gas to the power plant, an integrated gas to power solution that is expected to lower the costs of electricity and provide additional gas for other consumers.

Through its LNG industry experts and marine engineers, BMT will be working closely with Endeavour and Excelerate Energy in conducting FEED level studies which include operability assessments, infrastructure design and optimization studies for the supply of gas from the offshore moored FSRU via subsea infrastructure to the onshore gas turbines at Aboadze, Ghana.

In March 2015, Shell and the Ghana 1000 consortium entered into exclusive SPA negotiations regarding a long-term supply agreement for liquefied natural gas. With current LNG prices approximately 35% less than the current price of light crude oil, the import of LNG is expected to both reduce the cost of generation and to reduce the gas shortage the country currently faces to power its generation plants. The five-year project is expected to boost Ghana’s power generation capacity by 50% from the current 2000MW installed capacity.