Ashtead Technology is to provide fast, reliable and more cost-effective broadband communications between rigs and vessels and onshore facilities following a worldwide agreement with a leader in remote communications technology.

The leading independent provider of subsea equipment rental, sales and services to the offshore industry has secured this worldwide agreement with Belgium and US based nCentric.

The deal will see Ashtead Technology supply seamless video streaming and data transmissions for large-scale, wireless dynamic mesh networks from its offices across the globe.

Tim Sheehan, commercial director at Ashtead Technology said: “Capturing data from remote locations is still a major challenge for the industry. Today, most communications from oil and gas platforms and vessels to shore depend on expensive satellite links. The nCentric technology delivers a cost effective, efficient and reliable wireless network in large, hard-to-reach geographical areas.”

The nCentric technology can be used to monitor offshore operations, increase communication and can relay high definition footage from Remotely Operated Vehicles (ROVs) in real-time. The system can be configured remotely and can be monitored from an onshore location, reducing the number of people required offshore and limiting downtime.

nCentric’s technology was a key component in the clean-up operation following the Deep Water Horizon disaster in 2010. By using nCentric’s communication node on board eight vessels, crews were able to stream more than 10 live ROV video images to the offshore command centre as well as between one another and create a reliable communication link.

Mr. Sheehan added: “The wireless communication allows operators to track vessel movements. The system can be quickly and easily installed, unlike traditional cable networks which can be expensive and in some cases impossible.

“Harsh offshore conditions combined with remote and isolated locations means that communication lifelines are increasingly important to manage fleet and vessel operations as well as maintain crew safety. The need to implement secure, fast and reliable communications systems to monitor activity and track production is a vital part of any offshore operation.”

Headquartered in Belgium, nCentric is a fast-growing provider of offshore network solutions to support offshore communication.

Marc Vereecken, sales manager for nCentric said: “By developing our own patented products and solutions, nCentric has a strong competitive advantage both in terms of technology and pricing compared to other telecommunication companies in the market.

“Most projects consist of installing and managing our communication equipment for one or more parties involved in an offshore construction project, thus enabling multiple boats or infrastructures to communicate together, exchange real time IP data and video images.

“Working in partnership with Ashtead Technology, we can specifically address the overall communication requirements of platforms, vessels and other assets operating in remote areas, providing high bandwidth and low latency communication solutions that result in more efficient and safer operations.”

Through the delivery of enhanced technical support services, the increased capabilities of its teams across the business and the addition of the latest technology, Ashtead Technology delivers a range of value-added services which include the supply of offshore personnel, equipment sales, complete asset management, calibration, repair and maintenance, custom engineering, cable moulding and training.

NYC-based PIRA Energy Group believes that oil sands production will remain resilient despite low prices. In the U.S., a large commercial stock build matched last year. In Japan, crude runs and imports rose and stocks built. Specifically, PIRA’s analysis of the oil market fundamentals has revealed the following:

Large U.S. Commercial Stock Build Matches Last Year

This past week commercial oil inventories increased 10.0 million barrels, leaving the stock surplus to last year at 163 million barrels. Most of the build was in the key refined light products and these builds were even stronger than last year’s. Hence, the stock surplus for distillate widened and the stock deficit for gasoline virtually disappeared.

Demand Improves but Supplies Remain Overbearing

Going into a New Year, fear remains largely focused on additional price weakness, which is also reflected in the PIRA price forecast. Demand is definitely stronger, but still not strong enough to alleviate the pressure building behind burgeoning global gas supplies. The supply pressure is much more apparent in Asia spot prices, where LNG supplies are building and demand remains weak, but it will be coming to Europe in the weeks and months ahead.

Energy Markets Melt Down

The German and French year ahead contracts have plummeted to an all-time low, mirroring a large downward move in the energy pricing complex. While this move is reminiscent of the collapses seen in January 2009, the current market dynamics appear so far to be very different from the great recession of 2008-9, as the current price plunge appears to be driven by a major mismatch in oil supply/demand. Collapsing oil prices have ramifications all over the energy space, but they are also spooking the financial markets, as a financial upheaval is a possibility either in China or in other emerging markets. The trends in real-time electricity demand are an important signpost in the current market turmoil. While data is generally mixed across markets, demand is, so far, not falling as severely as it did back in 2008/2009. If the macroeconomic framework holds up, as it appears, then we should continue to expect relatively steady margins for power generators. The spark spreads could potentially benefit, considering that global oil and LNG balances are now extremely long. However, this length in the fuel markets implies that German power may nevertheless touch new lows.

Bearish Wave Pushes Coal Prices Even Lower

Notable declines in most equity and commodity markets caused coal prices to also move south last week. 1Q16 API#2 (Northwest Europe) prices lost more than $2.00/mt, and pushed below the $45/mt to finish the week at $43.85/mt. Both prompt FOB Newcastle (Australia) and API#4 (South Africa) prices are now below $50.00/mt, and the backwardation in these markets have Cal-17 prices at or below $40/mt. There is not much by way of support for pricing that would prevent further deterioration over the next 90 days.

California Carbon: Gas/Diesel Demand Up, Crude Production Emissions Down

CP1 reconciliation indicates a large allowance surplus with another expected for 2015. For 2016, with weak oil prices, potential lower emissions from shut-in of high-cost oil wells will be more than offset by stronger gasoline, diesel demand. El Nino rain will help CA hydro, though NW hydro may be adversely impacted. Pricing dynamics in early 2016 contrast to one year ago, when hedging from broad scope entities drove prices. Interest in futures will provide an indication of the likelihood of fully-subscribed V-19 auctions.

NGL Prices Dragged Lower by Weak Crude

LPG prices plunged with crude oil with Mt Belvieu propane losing 12% week-on-week. Butane and natural gasoline fared worse at the market center, despite motor gasoline’s slight outperformance on the week. February butane futures at the Texas market center fell 15% to 42.8¢/gal while C5s weakened to 67¢.

U.S. Ethanol Prices and Margins Decrease

U.S. ethanol prices started the year tumbling to the weakest level in over a decade. Manufacturing margins also declined.

Corn Gathers Interest

Between the Commitment of Traders report issued Friday and the market trading above its first hurdle of $3.65 overnight, corn gets our interest as a holiday-shortened trading week begins.

Implementation Day for the Iran Nuclear Deal: What it Really Means for Sanctions

The landmark nuclear deal between Iran and the P5+1 was officially implemented. With the IAEA verification that Iran has met its nuclear obligations, EU and U.S. nuclear-related sanctions are lifted. We summarize the major sanctions that will remain in place as the nuclear deal runs its course, and those that are now lifted.

Global Equities Again Broadly Lower

Global equity markets extended their losses in the New Year. All of our tracking indices moved lower, other than the domestic utility index, which moved higher by 0.8%. Banking, housing, and materials were again the worst performers. Internationally, all the indices lost 2.6-5.3% for the week. Even the strongest performer, Europe, still only performed in line with the U.S. S&P 500 tracking index, down 2.6%.

Japanese Runs and Imports Rose and Crude Stocks Built

Crude runs continued to rise and imports picked up sufficiently to build stocks. Except for kerosene, finished product stocks also built. Gasoil demand rebounded, but balances still produced a stock build. Gasoline demand eased despite a holiday. Refining margins remain very strong with higher gasoline, naphtha, and fuel oil cracks offsetting softer middle distillate cracks.

Tighter January Balances But Still Bearish February Risks

Thursday’s unexpectedly modest 168 BCF reported stock draw further tempered the upward HH price momentum, which already had been arrested earlier this week. Last week’s Gas Flash: Part II (1/8) discussed how colder weather and weaker production had sparked the former HH rally. While January gas balances now appear slightly less supportive, a more resilient backdrop remains, notwithstanding the latest weekly storage report.

Eastern Grid/ERCOT Market Forecast

December 2015 was the warmest and wettest December in the continental U.S. in the 121 year period of record. Eastern Interconnect (U.S.) loads fell by 5.8% (~19 aGW) from the prior year. On-peak energy prices declined in almost every market in December with the exceptions being NY-J, NY-G and the MN hub. Despite the weak prices, implied gas heat rates remained firm with CCGT units in the money everywhere except Ontario. This allowed the power market to absorb incremental volumes of gas that were not required by space heating customers.

Arch Coal Bankruptcy and Market Implications

To no great surprise, Arch Coal (ACI) filed for Chapter 11 bankruptcy in order to facilitate a restructuring of its financial debt load. ACI has entered into a restructuring support agreement with a group of lenders that currently hold more than 50% of the company’s first lien debt. While the typical assumption of a corporate bankruptcy in the commodity sector might seem to be bullish on first glance, this is not necessarily the case in the short-run in a cost-competitive region such as the PRB, and ACI may look to gain market share due to the cost relief. However, it may give ACI some flexibility to temporarily idle Coal Creek, the type of action PIRA believes is necessary (by ACI or another PRB producer) to balance supply and demand.

European Carbon Pushed Down As Gas Replaces Coal

The recent EUA price drop has brought into greater focus many of the existing downside risks: greater supply, weakening demand, and few new policy developments. Low gas prices raise the prospect of increased coal to gas fuel switching and greater uncertainty regarding forward EUA demand – in a market with a shorter appetite for hedging. However, EUA prices may be weather-supported for the remainder of January, following a record-warm December.

Significant Build in Financial Stresses

Financial stresses are building while markets broadly deteriorate. In addition to a decline in equities, the other key indicators such as VIX, high yield debt (HYG) and emerging market debt (EMB) also performed poorly on the week. Total commodities continue to decline. Energy, palladium, aluminum and copper all extended their losses. The U.S. dollar continues to generally strengthen.

Ethanol Stocks Built to the Highest Level in Over 10-months

U.S. ethanol production advanced to 1,003 MB/D the week ending January 8, slightly less than the record high 1,008 MB/D set seven weeks earlier. The hefty output led to an inventory build of 246 thousand barrels to 21.3 million barrels, the highest level in over 10 months.

Time to Breathe

The “final” crop production report of the year gives the market some time to digest and breathe after a tumultuous end to the year for commodities in general. Relative performance for ags, especially in soybeans, has been very impressive given all the commodity and equity noise that surround these markets on a daily basis.

Iran Nuclear Sanctions Relief Imminent

PIRA sees Iranian nuclear sanction relief as imminent, in line with recent headlines that state the IAEA will confirm Iranian compliance with the P5+1 nuclear deal as early as Friday or early next week. We expect Iranian crude production will increase by 500 MB/D rather quickly.

Oil Sands Production to Remain Resilient Despite Low Prices

PIRA expects there to be no material shut-ins in Canadian oil sands despite oil prices below cash operating cost. High fixed cost, shut down/restart costs, and risk of reservoir damage make the potential for shut-ins unlikely. Rather, operators are likely to increase utilization rates to further drive down per barrel cost. PIRA expects oil sands production to grow 250 MB/D in 2016 in spite of low prices.

U.S. Set to Upend Atlantic Basic LNG Markets

The somnambulant nature of the Atlantic Basin LNG market is all about to change with a first cargo from the first of five 6.2-bcm/yr. trains at the Sabine Pass project. In contrast with the ongoing surge in Asian LNG volumes over the past 18 months, which so far have added some 15-bcm of new supplies since this time in 2014, Atlantic Basin LNG volumes have been in a years-long state of atrophy, with new liquefaction trains (Algeria, Angola) adding nothing to incremental regional supply; in the extreme case of Egypt, which added three “new” trains in 2005, the market had to quickly react to the sudden loss of 17-bcm of volumes over the course of seven months in 2013-14.

Some Latin American Refineries Might Benefit from U.S. Crude Oil

With the lifting of the U.S. crude export ban, Latin America would seem to be a logical destination for U.S. light sweet crude. However, besides Mexico, there are not many suitable refining candidates because only a few refineries currently process light sweet crude. Outside of Mexico, PIRA estimates that maximum penetration of U.S. crude exports into Latin America might be 50-75 MB/D. Mexico could take an additional 75-100 MB/D of light U.S. crude freeing up Mexican heavy crude for export. Beyond these volumes, European refiners are a larger potential market for U.S. crude as they already import substantial volumes of competing West African grades.

WA State Regs Propose Creation of Another Carbon Market

WA released its proposed Clean Air Rule, capping GHG emissions. Compliance will take place over 3-year compliance periods, starting in 2017-19 relying on domestic reductions, RGGI allowances, CCAs, offsets as well as RECs from the Pacific Northwest. This smaller market would draw on lowest-cost supply first - with more limited impacts on the allowance markets. Lower value supply could be some WA-specific reductions, RECs and offset types not eligible in the CA carbon market.

Asian Demand Update: Growth Slowing, but Still Robust

PIRA's latest update of Asian product demand shows continued slowing. PIRA's December update had shown growth of 1.1 MMB/D, which has now slowed to 0.74 MMB/D, with the four major products showing growth of about 0.5 MMB/D. Accounting for the slower growth was China, throttling back from 513 MB/D to 255 MB/D, Japan slowing from 29 MB/D to -98 MB/D, and India easing from growth of 444 MB/D to 396 MB/D. Looking at individual products, the overwhelming change in Asian demand growth has been in middle distillates, both gasoil and jet-kero.

Algerians Raise Gas Prices to Counter Effect of Currency Falls

CREG, the Algerian energy regulator, has increased electricity and gas tariffs for high-voltage electricity and high pressure gas (industry) by 20% and 35% respectively. Retro-active from 1 January 2016, increases in electricity prices cover nearly 76% of consumers while the gas price increase affect 57% of consumers, according to data released by the CREG. The 35% rise reverses prices in USD to Aug 2014 when the Algerian Dinar was 35% stronger than it is currently.

Latest Economic Data Have Downbeat Tone, but There Are No Imminent Signs of Danger

An onslaught of financial risk appetite continued for the second consecutive week, as major equity indices registered further declines. Market conditions have reflected broad-based nervousness about fragilities in the macro backdrop. Key economic data releases have been resilient recently, however, and there are no indications that global growth has weakened notably.

Potential Entities Covered Under WA Carbon Policy

This file offers a list of entities proposed to be covered under Washington State’s Clean Air Rule, designed to cap GHG emissions from covered sources. The list included 2014 CO2 emissions from stationary sources in WA as reported to EPA along with a designation of when facilities will be covered under the Clean Air Rule. This data is combined with estimates for emissions from petroleum products produced at WA refineries, and emissions from fuel importers to provide an overall size of the program.

January Weather: The U.S. Warm; Europe and Japan Near Normal

At midmonth, January looks to be warmer than the 10-year normal by 2% for the three major OECD markets with oil-heat demand weaker than normal by 158MB/D. The markets are roughly 7% warmer on a 30-year-normal basis.

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.

Statoil ASA (OSE: STL, NYSE: STO) has acquired 37,101, 561 shares in Lundin Petroleum AB (publ.), corresponding to 11.93 percent of the shares and votes, at a total purchase price of approximately SEK 4.6 billion.

The investment in Lundin Petroleum will increase Statoil’s indirect exposure to core assets on the Norwegian Continental Shelf (“NCS”).

“We consider this a long term shareholding. The Norwegian Continental Shelf is the backbone of Statoil’s business, and this transaction indirectly strengthens our total share of the value creation from core, high value assets on the NCS, ” says Eldar Sætre, president and CEO of Statoil ASA.

Statoil is continuously looking to enhance value creation. In recent years Statoil has farmed down in certain mature assets on the NCS to realize value for new investments.

Through the acquisition of shares in Lundin Petroleum, Statoil increases its exposure to core field development projects and growth assets on NCS, including Johan Sverdrup and Edvard Grieg at attractive values. The investment underpins Statoil’s long term interest and commitment to the future of the NCS.

Lundin Petroleum has over the last decade successfully built a strong portfolio on the NCS, and internationally in Malaysia, and France. The company had 187.5 million barrels of oil equivalent of reserves at the end of 2014. From 2002 to 2014 it increased its reserves base four fold, and produced 24,900 barrels of oil equivalent per day in 2014. In 2015 it has booked net 2P reserves of 515 million barrels of oil equivalent for the full field development of Johan Sverdrup, based on its 22.60 percent working interest.

Statoil is supportive of Lundin Petroleum’s management, its board of directors and the strategy. There is no plan to increase Statoil’s shareholding in the company.

Conductor Installation Services Ltd (CIS), an Acteon company that provides hammer services to install conductors and drive piles, announced that it successfully completed its second conductor installation operation during the last 12 months for a leading North Sea oil and gas operator.

Work was carried out on a major gas development project in the Southern North Sea. CIS installed six 30-inch conductors on the project to form the foundations of six development wells. In addition, CIS supplied all conductor-running services, handling equipment, together with drive shoes that improve driveability by 40%.

Following completion of a comprehensive drive study, CIS crew worked with rig contractor Ensco and the operator to commence the driving operation. CIS worked from the jack-up rig Ensco 80, and used a 90 kJ hydraulic hammer to drive all six conductors to their target depth on the wellhead platform. Conductors were driven as deep as 401 feet from the rig floor to the conductor toe, reaching a depth of 158 feet below the mudline.

The installation campaign was completed on time, without delay or downtime. Once again, this operator saved time and money as a result of CIS’s efforts on their behalf.

Building on success

Earlier this year, CIS carried out a pile-driving campaign on the same development that was completed 17 hours ahead of schedule. As a result, the operator realized significant cost-savings in terms of reduced equipment rental fees, rig time and labor.

“We have worked on behalf of this operator in the North Sea many times,” said Andy Penman, Group Managing Director of CIS. “Once again, the driving operation went to plan. The investment in planning, detailed drive study, technology employed and experience of our installation team contributed a great deal. The positive relationships that we share with Ensco and the operator mean that we come with a winning attitude and commitment to achieving success on every job we undertake, and this operation was no exception.”

The range of services provided by CIS supports the Acteon Group’s commitment to defining subsea services across a range of interconnected disciplines.

Kongsberg Maritime’s wholly owned deck equipment specialist Kongsberg Evotec reports a strong start to the year with three separate new contracts for advanced Seismic Handling systems.

Two contracts, for customers located in China, are for delivery of Seismic Handling systems for a six streamer vessel and a two streamer vessel. Both vessels are currently under construction in China and Kongsberg Evotec will start equipment deliveries from October 2016.

Kongsberg Evotec also signed a contract with a Norwegian customer for a Seismic Handling system featuring a containerized gun system. The equipment is scheduled for delivery in Norway, July 2016.

All Kongsberg Evotec Seismic Handling systems are custom built for specific vessel and client needs, using an established portfolio of reliable, feature rich equipment that covers: Streamer handling system, Gun handling system, Wide tow system, Back-deck control system and additional seismic products.

Kongsberg Evotec provides services from design to total engineering, fabrication, installation, commissioning and start up, ensuring that all seismic vessel back deck equipment supports a vessel’s ability to operate efficiently, allowing for faster, safer operation that impacts positively on the profitability of any survey project.

“While demonstrating the strength and capabilities of Kongsberg Evotec’s technology for handling systems for seismic vessels, the contracts also show our strength in new markets and signal the E&P sector’s willingness to invest in systems to improve operations, even during the current oil & gas climate,” says Torkjell Ringstad, VP Handling Solutions, Kongsberg Maritime.

Saudi Arabia’s reluctance to cut production to maintain its share of the global crude market has paid off. By not “blinking first”, the Kingdom has succeeded in driving rigs out of the US shale market with current rotary rig counts down 65% from 2014 highs in September. This has led to significant decreases in production in the Bakken (-10%) and Eagle Ford (-20%) shale plays over the same period. The situation has been compounded by the retraction of Zero Interest Rate Policy (ZIRP) which is expected to limit further investment into small cap shale. This has caused many analysts (FT, CNBC, etc.) to sound a death knell for the once heralded tight oil industry, where up to half of US shale players could go bankrupt in 2016.

However, the strategy put forth by Saudi Arabia has come at a cost. Despite a massive $670bn sovereign wealth fund, the country is slipping into the red. With the government budget based on $106 oil, falling revenue from oil exports coupled with high spending on subsidies and support to foreign allies has led to a national budget deficit of 22% GDP in 2015. According to the IMF, the country may become bankrupt in five years if its expenditure patterns remain unchanged. With oil price expected to remain suppressed until 2017/18, the Kingdom needs to assess all of its options.

In addition to spending cuts, Deputy Crown Prince Mohammed bin Salman has recently spoken of the potential IPO of Saudi Aramco, as a part of the wider series of economic reforms. If successful, such a move would dwarf the other “mega-deals” of the current low oil price environment (e.g. HAL & BHI or Shell & BG). Estimated value of Aramco could reach up to $10 trillion based on its proven reserve at $40 oil price, which is about 12 times that of ExxonMobil ($357bn), Chevron ($197bn), Shell ($192bn) and Total ($118bn) combined.

Arguably, the timing could not possibly be worse for a listing of an E&P company, valuations are at a cyclical trough as a function of low oil prices and most major E&P firms are trading at prices not seen since the global crash in late 2008. It is clear, however, that Saudi Arabia is facing huge budget deficits and desperate times call for desperate measures.

LQT Industries, LLC, a full-service provider of high quality accommodation facilities, design-build construction services, and support services to the oil and gas industry, has been awarded multiple contracts to provide Fire and Safety services for a drilling company located in Asia.

LQT’s Fire and Safety Division’s initial release of work includes refurbishment, upgrades, and installation of all fire and gas detection systems, foam suppression systems, and s safety equipment throughout a drilling rig. All systems will comply with SOLAS and ABS regulations.

“LQT continues to expand its international presence with projects currently ongoing in the Middle East and Malaysia.” said Lonny Gaspard, LQT’s Fire and Safety Division Manager. “This is a positive start to the new year for our group. We are excited to gain new customers in this market and very appreciative of the opportunity to provide continuing services and expertise to this customer.”

CASCADe, a three-year, EU-funded project which is coming to a close this month has developed new methodologies in which information is shared and displayed on a ship’s bridge, helping to improve efficiency on board and contribute towards the prevention of accidents at sea.

Drawing directly from the experience of seafarers, CASCADe has developed a new adaptive bridge design methodology that treats both human agents and electronic equipment as parts of a cooperative system. This allows for the sharing of information to be optimised.

In addition, CASCADe has developed a set of adaptive bridge displays. A touch screen ‘Shared Display’ is intended to aid communication and co-operation on the bridge. This tool is fully customisable and allows one screen to show multiple sources of information in whatever configuration is most suitable for a particular situation. The ‘Shared Display’ provides functionality to graphically annotate maps, leave notes for other crew members or complete checklists electronically.

Moreover, the CASCADe console was integrated with tools used by pilots in their Portable Pilot Units (PPUs). Firstly, CASCADe developed a protocol to share pilotage routes between the PPU and the ship’s electronic charts. Secondly, a link was established between the PPU and the bridge screens to allow mirroring of information from the PPU screen, enabling crew members to see extra information normally only available to the pilot.

All of these CASCADe tools were tested on both a physical simulator (a ship simulator used for training) and a virtual simulator (a software-based simulation of a ship bridge). The virtual simulation platform makes it possible to test new bridge designs at the earliest stages of development, based purely on computational models. By simulating human-machine interaction, it is possible to analyse information flow and optimise the information exchange between seafarers and bridge equipment.

Through innovative research techniques such as modelling and simulation, listening to the experience of seafarers, cross-discipline collaboration and forward thinking ideas, CASCADe has produced new concepts in bridge console design. By improving communication and co-operation and providing adaptive features on the bridge, CASCADe has contributed towards the prevention of accidents and the improvement of efficiency on board – impacts that will be felt by both individual seafarers and the maritime world as a whole.

Under the coordination of OFFIS (Oldenburg Research and Development Institute for Information Technology Tools and Systems), CASCADe included a consortium of seven project partners from five EU countries including BMT Group Ltd, Raytheon Anschuetz GmbH, Mastermind Shipmanagement Ltd, the University of Cardiff, Marimatech AS and Symbio Concepts & Products SPRL.

Four further associated partners including the Maritime Cluster Northern Germany, Nautilus International, NSB Niederelbe Schiffahrtsgesellschaft mbH & Co. KG and the University of Tasmania also supported the project

New vessel with walk-to-work functionality purpose-built for offshore wind operations

On 15 January, Bibby Marine Services Limited, part of Bibby Line Group, signed a contract with the Damen Shipyards Group for delivery of its first Service Operations Vessel (SOV) with walk-to-work access. The vessel, Bibby WaveMaster 1, will undertake offshore wind project work in the North Sea. It is the first vessel purpose-built for the transfer and accommodation of offshore personnel and aims to maximise working time and staff retention. The design guarantees fast, safe and comfortable access to turbines, at lower cost, up to 80% of the time, including in worst case scenario Central North Sea conditions, resulting in a vessel capable of providing access up to 3.1 meter Hs.

In line with wind farms being constructed farther from shore, the SOV with walk-to-work access is able to remain at sea for periods up to one month. Accommodation is provided on board for up to 45 turbine maintenance personnel and 15 crew members.

“As a result, the vessel will ensure the safety and comfort of all on board for increased workability. This, in combination with other design features aiming at optimal workflow, ensures that the Service Operations Vessel offers a revolutionary performance in terms of cost-efficiency.

“We are delighted to be working with one of the great names in shipping. Damen and Bibby both have a strong maritime heritage and, almost uniquely, are both still family owned. However, both companies are clearly focussed on innovation and by working together, we are strengthening our position in the offshore renewables sector.”

The attention to detail can be seen throughout the design. For example, the hull, at 90 meters, is longer than that of a conventional platform supply vessel and the bow section has been lowered by 1.5 meters to create a V-shape. This feature offers significantly reduced slamming and facilitates inclusion and improved offshore operation of the bow thrusters.

The aft ship has been adapted specifically to the tasks that the vessel is designed for, including stern to waves operations. The most pronounced features that have been included are the strong V-shape in the frames in the aft ship to reduce the slamming occurrence and loads and the concentration of volume in the mid-ship region to achieve a slender aft ship. Both features should make stern to weather operations more comfortable than on a common PSV design.

Comfort onboard stems also from ergonomic design application, which sees interior spaces grouped together into similar task areas. This not only separates ‘clean’ and ‘dirty’ tasks, but ensures short lines of communication and smooth workflow. The accommodation has been placed midships for additional comfort – the location reducing vertical acceleration by as much as 15%.

Efficiency is another key feature. The design includes a diesel-electric main propulsion system, which powers twin azimuth thrusters. Thanks to careful development, the vessel requires less installed power than a conventional PSV. This results from two factors – a symmetrical wind profile and use of a four split main switchboard.

Mr. Robert: “The symmetric profile is created by locating the superstructure amidships instead of bow mounted. Because of this, the wind induced moment is less, resulting in lower required bow thruster power. The four split configuration of the main switchboard enables us to divide the generator sets more efficiently than in conventional arrangements with two switchboards. In the event of a failure only one of four switchboards would be out of action, as opposed to one of two. That leaves proportionally more power available, again requiring less total installed power.”

A high-performance, motion-compensated access gangway and active heave compensated crane are located to port side, close to the centre of gravity. The management systems of both features are aligned with the vessel’s DP system.

The target was a 30-minute cycle, during which the vessel deploys the gangway and then transits in AutoTrack mode, several hundred metres, at speeds up to and beyond 6 knots to the following turbine without having to wait for an ideal weather window or having to rebuild the DP model at every turbine.

Strong performance was confirmed by Lead Engineer DP & Manoeuvring Product at DP provider Kongsberg, Audun Bjarte Navelsaker: “Damen’s vessel performed very well and was very stable during different types of weather. To my knowledge, this was the first test where we could control the weather and external factors acting on a vessel.”

The vessel exceeded all expectations, as Dr Joop Helder, MARIN Project Manager Offshore attested: “The results clearly showed Damen’s vessel performing very nicely. Especially in the wave conditions – there was hardly any rolling. I think these tests give a lot of confidence.”

A host of options are available for the vessel, including an additional deck crane with up to 24 tonnes capability, tanks arrangements suited to liquids such as glycols, tanks suited to low flashpoint liquids with separate delivery intakes and facilities for dive support and ROV operations.

Stephen Blaikie, Chief Executive Officer, Bibby Marine Services Ltd. Commented, “We have worked very closely with Damen to custom design an access and accommodation solution that exactly meets the specific needs of wind farm operators. Bibby WaveMaster 1 will operate with the greenest possible credentials. It is designed to give operators more access, more safety and more comfort when operating and servicing their wind farms.”

Bibby WaveMaster 1 is the first vessel to be commissioned by Bibby Marine Services Limited. Its key features are:

Aker Solutions has notified employees in its maintenance, modifications and operations (MMO) unit across Norway of necessary steps to reposition the business and enhance competitiveness in a market with unprecedented challenges.

The company is streamlining the Norwegian MMO business to one regional unit from previously four, affecting management and staff from Tromsø to Stavanger.

Depending on future work levels, as many as 900 permanent positions may be impacted at facilities in Stavanger, Bergen, Kristiansund, Trondheim, Tromsø and Sandnessjøen as well as offshore. The workforce reductions will be made through regular employee turnover, reassignments to other parts of the company and redundancies.

A process to implement about half of the reductions will start immediately. Remaining adjustments will depend on work levels throughout the year. The company has previously reduced capacity in its Norwegian MMO business by about 1,300 permanent and temporary positions since July 2014 to adjust to a market slowdown.

"These measures are painful but necessary to strengthen the competitiveness and longer term potential of our Norwegian MMO business, which has suffered from a sharp drop in activity in Norway's offshore services market," said Luis Araujo, chief executive officer of Aker Solutions.

The more streamlined business will support leaner processes and bolster overall operations. It will build on the company's core strengths in the MMO area, particularly within more complex modifications projects.

"We see significant opportunities ahead in the Norwegian modifications segment, where our experience and know-how are second to none," said Per Harald Kongelf, head of Aker Solutions' Norwegian operations.

There has been a substantial downturn in investments in the Norwegian oil and gas market since 2014. Aker Solutions expects the MMO market in Norway to continue to be challenging in 2016. Work volumes will also be impacted as the company's long-term maintenance and modifications framework agreement with Statoil expires in the first half of this year.

As a result, the company's prefabrication workshop in Sandnessjøen will be temporarily shut down for about three years. MMO operations in Tromsø will also be terminated, though some employees in this strategically important northern location will likely be kept on as part of the company's Arctic Hub. These employees will join Aker Solutions' Engineering and Front End Spectrum teams.

"Market conditions are challenging, but I am confident that the steps we are taking now to streamline operations, reduce costs and focus on our key strengths will enhance our position in MMO, also internationally, where we have been winning business and expanding in countries including Canada, the UK and Brunei," said Araujo.

Aker Solutions has about 16,000 permanent employees in some 20 countries. About 5,000 employees are in the MMO area, of which approximately 3,600 are in Norway.

News Release - 13 January 2016

Global integrated drilling waste management and environmental services firm, TWMA, has been shortlisted in the Export Achievement category at this year’s Offshore Achievement Awards.

The shortlisting recognises the company’s business growth resulting from successful export activity in the oil and gas and energy sector.

TWMA has adopted a proactive approach to export markets, focusing on its fully integrated service offering and international expansion throughout Europe, Africa and the Middle East.

Rob O’Neill, Director of Business Development at TWMA, said: “We are delighted to be nominated for this prestigious industry award, which is testament to the hard work and dedication of our whole team. Successful export activity is vital for the company and for achieving long term sustainable growth, in addition to continued international expansion which is a key element of our business strategy.”

The company is also once again sponsoring the Environmental Innovation award at this year’s awards, after winning this award in 2014 in recognition of its unique TCC RotoMill® and TCC RotoTruck® products.

Now it its 30th year, the Offshore Achievement Awards is the largest and longest established industry awards for the UK offshore energy sector. Winners will be announced at a prestigious awards ceremony on Thursday 17 March, at the Aberdeen Exhibition and Conference Centre.

For more information on TWMA and its services, click here.

Leading international energy logistics provider Peterson has secured a significant, long term logistics contract with leading oil and gas operator Maersk Oil. The five year deal enables greater focus on delivering sustainable cost saving concepts and systems.

Peterson will work closely with the operator to deliver a comprehensive logistics approach including warehousing, inventory control, transport, fuel and quayside logistics, crew changes and walk to work supporting Maersk Oil’s UK North Sea assets.

Murdo MacIver, director, Peterson said: “To have been awarded such a ground-breaking contract with Maersk Oil is a huge achievement for Peterson and demonstrates complete confidence in the longevity of the services we provide.

The strong partnership and understanding we have built with this key client positions us well to support them and provide innovative solutions to optimise efficiency, safety and service across these assets at this challenging time for the sector.”

The contract continues the existing relationship between Maersk Oil and Peterson. Peterson also provides fourth party logistics (4PL) support in the Persian Gulf.

Both companies will continue to develop smart solutions utilising Peterson’s proprietary suite of digital applications such as eCargo and VOR which enable real time, data driven decisions to improve performance and will keep both companies at the forefront of technological logistics.

Blog author: Tim Schweikert

From the price of oil to environmental regulation, 2015 was a year of turmoil and uncertainty for the marine sector. Despite this, there were some common global trends that will define 2016.

The Environment

In December 2015, world leaders met at the COP21 conference to discuss climate change. The event’s outcome marks a decisive move towards a low carbon future focused on achieving the agreed-upon world target of 1.5 degree climate change ceiling. Indeed, despite being the most carbon-efficient form of commercial transport[1], the scale of global shipping means it emits around 1,000 million tons of CO2 annually, and is responsible for 2.2% of global greenhouse gas emissions. Therefore the industry has a strong role to play in meeting this target.

While no targets were specifically mentioned for the shipping industry during the COP21, the UN’s IMO[2] regulations have already established and imposed challenging regulation around emissions and fuel efficiency. Additionally, the EU introduced the MRV[3] framework in April 2015 which will require large vessels calling at EU ports to collect and publish annual data on CO2 emissions, starting from January 2018. With more scrutiny to come, the maritime industry will need to implement solutions that will help limit their emissions’ impact on the environment.

Fluctuating economic conditions

The overall decline in global shipping, timed with an increase in megaship deliveries, results in industry overcapacity. Consequently, ratings agency Fitch has revised its outlook for global shipping to negative for 2016, from stable in 2014, although long-term seaborne trade and fleet are both forecast to grow between 3% and 3.5% on average per annum to 2025[4].

The offshore industry remains particularly vulnerable. Rising costs, program delays, a large backlog ($390 billion) leading to oversupply, volatile oil prices and corruption scandals in the oil & gas industry in Brazil have created the perfect storm. Capital for building new offshore vessels is estimated to be $15 billion in 2015, down 75% from $68 billion in 2013[5]. We have seen exploration and extraction activities slow down and offshore owners and operators are under great pressure to meet cost challenges.

The volatile state of the industry and stricter environment regulations mean we need to change the way we operate. Companies must rely on innovation using new technologies to increase productivity and meet the new environmental regulations on existing vessels, as well as taking a fresh look at new possibilities to cost effectively produce new vessels.

Innovations driving cleaner marine environment

To meet the new demand driven by strict environmental regulations, GE Marine offers its Combined Gas turbine Electric and Steam (COGES) system for various commercial marine applications, including LNG carriers, cruise ships and container ships. The COGES system enhances conversion of energy available in the fuel to produce electricity and power for all ship needs, including propulsion. GE’s marine gas turbines can operate on various fuels including LNG boil-off gas or marine gas oil (MGO). No additional emissions reduction equipment is required to meet IMO Tier III or US EPA Tier 4 requirements.

Restrictions became even more stringent as of January 1, 2016 for diesel engines around the world. The United States Environmental Protection Agency’s (EPA) Clean Air Act began enforcing “Tier 4”, for diesel engines built after January 1. For vessels governed by IMO’s MARPOL Annex VI, more stringent nitrogen oxide (NOx) emissions requirements, known as IMO III, come into effect for vessels built after January 1, 2016 and operating in the designated environmental control areas (ECAs).

These regulations will impact both the environment as well as the engine manufacturers. Advanced engine technology is needed to make sure new ship engines meet the stricter emissions requirements, and cause as little impact to the vessel design and operations as possible.

GE Marine’s latest Tier 4 Engine meets the new EPA Tier 4 and IMO III emissions standards, reducing nitrogen oxide by more than 70 percent compared to EPA Tier 2 and IMO II emissions standards, while still maintaining world-class fuel efficiency and service intervals. Its in-engine solution is based on exhaust gas recirculation technology, reducing the formation of NOx at combustion, thus eliminating the need for a urea-based after-treatment system.

Because the engine does not need a urea-based selective Catalytic Reduction (SCR) after-treatment system, it requires only about 25% of the engine room space versus other market solutions, reducing the need to make significant design changes on the vessel. This technology also eliminates the incremental operating expenses for urea use, catalyst replacements and maintenance on a SCR after treatment system.

Moving to a digital marine mind-set

With all eyes on operational expenditures in an uncertain market, technology will play a vital role in making marine operations as efficient and cost-effective as possible.

To meet this demand, more shipbuilders will build vessels with technology at the forefront of the design process, using advanced modelling software which analyses a vessel’s anticipated operational profile, and optimises the design from the offset.

Using digital tools, vessels will also become greener, more efficient, and increasingly productive. GE’s SeaStream* Insight, for example, provides operators with a holistic view of their ships, allowing them to spot anomalies and other data which lead to better operational decision making and therefore fuel efficiency.

With Predix* at its core, SeaStream Insight allows preventative maintenance to be carried out before a failure occurs, thanks to early warning signs made visible through data-driven analytics. This level of visibility allows operators to switch from a scheduled maintenance model, to a condition-based one, reducing downtime and offering significant cost-savings.

SeaStream Insight also particularly benefits the offshore industry, where vessels are operating in remote locations, as its remote monitoring capability allows engineers to assess issues from anywhere in the world, reducing third party cost, and help solve problems faster.

With belts being tightened across the industry, the cost-savings that digital technology can deliver can’t be ignored.

2016 – a year of opportunity

The year ahead presents an opportunity –increased environmental regulation paves the way for wider use of hybrid energy solutions, which are not only cleaner, but also offer significant leaps forward in efficiency. This is good news for operators across the marine industry, who will be looking to work as cost-effectively as possible in 2016. Operating in a leaner, greener manner is the future of the marine industry, and 2016 will be a defining year.

• Indicates a trademark of the General Electric Company and/or its subsidiaries.

Tim Schweikert has been appointed as the President & CEO of GE Marine since January of 2015. First joining GE in 1984 on the Manufacturing Development Program, Tim progressed through various roles and was made General Manager, Global Locomotive Operations for GE Transportation in December 2003, overseeing the launch of the Evolution Series locomotive and the acceleration of GE’s global locomotive business. In February of 2006, he was appointed President, GE China Transportation, leading one of GE’s fastest growing businesses in China and in November of 2007 Tim became President & CEO China Region GE Technology Infrastructure. In February 2012 Tim made the move to Johannesburg, South Africa as President & CEO GETS Sub-Sahara Africa and President and CEO of GE Southern Africa, leading GE’s efforts in contributing to the revitalization of Africa’s infrastructure. - See more here.

The American Petroleum Institute's Global Industry Services department (API Global) has established a new and comprehensive Auditor Certification Program, which is the first to be developed by industry experts.

"API is committed to safety as a core value, and we are pleased to offer this new auditor certification program to help improve the safety and performance of oil and natural gas operations worldwide," said Lisa Salley, vice president of API Global. "API standards and certifications are the industry gold standard. The program is designed specifically for and by oil and natural gas quality management professionals and draws upon API's deep industry knowledge and expertise."

Company personnel and self-employed individuals can register to be trained, tested, and certified to audit various quality management programs according to API's globally-recognized standards. The certification of credentialed auditing professionals will play a key role in advancing quality programs, efficiency, and safety within the industry.

Certification candidates are required to provide proof of appropriate education, qualifications, training, and audit logs as part of the application and pre-qualification process. They must also sit for and pass a 150-question exam, administered worldwide at Prometric computer testing centers. The first exams will be offered March 1-15, 2016, and the registration deadline is February 5. API plans to hold three auditor certification exam periods per year.

Each of the three levels of certification can be obtained with a focus on either API Spec Q1 (Specification for Quality Management System Requirements for Manufacturing Organizations) or API Spec Q2 (Specification for Quality Management System Requirements for Service Supply Organizations).

For more information about the Auditor Certification Program, please click here.

API Global is responsible for certification, standards, statistics, training, events, and safety programs for the international oil and natural gas industry.

API is the only national trade association representing all facets of the oil and natural gas industry, which supports 9.8 million U.S. jobs and 8 percent of the U.S. economy. API's 650 members include large integrated companies, as well as exploration and production, refining, marketing, pipeline, and marine businesses, and service and supply firms. They provide most of the nation's energy and are backed by a growing grassroots movement of more than 30 million Americans.

The agreements signed form the basis for potential new EPC contracts (engineering, procurement and construction) for subsea equipment in the medium term future. An EPC option agreement for subsea production system (SPS) has also been signed with OneSubsea, including framework agreements for subsea operations services and subsea add-ons.

Last year Statoil also signed a Master Service Agreement and an EPC contract including options for EPC project with FMC Kongsberg Subsea AS for Johan Sverdrup.

Torger Rød, vice president for projects in Statoil. (Photo: Øyvind Hagen)

“In light of the current challenges the industry is facing the suppliers have demonstrated commitment and drive to break the cost curve and enhance competitiveness. Statoil has cooperated closely with the suppliers on technology qualification, concept development and pre-engineering studies, and jointly we have delivered successful subsea projects,” says Torger Rød, vice president for projects in Statoil.

The agreements signed form a good basis for future collaboration with three leading subsea suppliers, thereby simplifying collaboration in the time ahead.

In today’s oil price environment, sustained focus on costs and efficiency will ultimately be the key to develop several currently marginal prospects and discoveries.

“We look forward to continuing the good collaboration going forward. The agreements constitute a framework upon which the suppliers can continue with optimization and cost reducing measures. Future awards will go to the supplier who are willing to and capable of continuing the drive for sustained quality, standardization, higher efficiency and lower costs,” says Rød.

Statoil has awarded the contract for Johan Castberg Subsea – Integration Pre-FEED and FEED Project with Options to IKM Ocean Design.

The contract includes Pre-FEED and FEED of pipelines, risers, cables, tie-ins and related structures on the Johan Castberg field. Furthermore, detail design and follow-on engineering are included as options along with EPC of pipeline related structures.

CEO of IKM Ocean Design, Peder Hoås says; "We are extremely proud that Statoil has chosen IKM for this prestigious task and we look forward to further develop the field in cooperation with the Statoil team in order to make the project technically and commercially robust. The contract secures work for our engineers on a long term basis, and is one of the largest engineering contracts since the company was established.”

Contract signing (Fornebu – Oslo) - Peder Hoås and Geir Paulsen (Statoil)

The contract has a duration of two years for the completion of Pre-FEED and FEED design, covering the SURF part of the development. Including options, the total contract period and value could extend to 7 years and 200 mNOK, respectively. The engineering work starts immediately and will be run out of IKM’s Lysaker office.

IKM Ocean Design is a part of IKM Gruppen and is established with offices in Stavanger, Trondheim and Oslo. IKM Ocean Design employs 70 engineers within the areas of subsea field development, subsea pipelines and cables, subsea structures and topside engineering.

The Johan Castberg field is located in the Barents Sea, approximately 240 km north-west of Hammerfest in northern Norway. The field development comprises the Skrugard, Havis and Drivis fields, all within Production License 532.