Jee Ltd, a leading multi-disciple subsea engineering and training firm, has completed more than a thousand specialist span assessments already this year, delivering major cost-savings by avoiding remediation work.

Graham Wilson, Head of Late Life at Jee Limited, said: “Pipeline spans are formed due to an uneven seabed, scour or sandwaves, and can cause integrity issues with potential catastrophic and costly results. These spans can be susceptible to failure through fatigue and, as span length increases, the risk of fatigue damage due to direct wave loading or vortex-induced vibrations (VIV) also increases.”

Jee’s engineering team boasts a proven track-record for providing pipeline span assessment to the global oil and gas industry, with systems in place to run span analysis quickly and accurately.

Jee span monitoring kit

Mr. Wilson continued: “We have an in-depth understanding of the codes and standards and appreciate their limitations, allowing us to effectively challenge them without adversely affecting safety. By doing so we can remove conservatism and increase the allowable span length, minimising the remediation work required which can lead to expensive operations and potentially create new issues.

“When intervention work is necessary, we are pragmatic in our approach and ensure offshore vessel time and activities are optimized to maintain economical operations.”

In addition, Jee has developed an innovative span monitoring kit which monitors the motion of spans and the associated environmental conditions. The data collected can be used to prove that VIV isn’t occurring when predicted by the design codes, removing the need for costly corrective work. Alternatively, the kit allows the occurrence of VIV to be detected, providing supporting evidence of the need for intervention (the kit can also be used to provide assurance that remediation measures are having the desired effect).

“Jee has a long history of supporting subsea operations and is committed to providing quality engineering services in a technically advanced, secure and sustainable way. Our clients’ needs are always at the forefront of what we do, and we consistently aim to add-value to all projects and operations.” Mr. Wilson concluded.

As the year approaches the fourth quarter, many industry observers are dusting off their forecasts for 2016 and re-thinking. Last week, HSBC lowered its oil price outlook to $60/bbl for 2016. The EIA, in its latest Short Term Energy Outlook also revised its 2016 projection downward by $8/bbl to $59/bbl. As the oilfield community starts to reflect on 2015, the number one question will surely be: “where is the recovery?”

The problem is that oil remains in plentiful supply. Through the first half of 2015 we have seen a rapid increase in production globally, and particularly from the US and Saudi Arabia. US production peaked in the summer and is now declining but overall we still expect global production in 2015 to have increased by 1.5mmbpd over 2014.

The reasons we have such an overhang in supply are primarily twofold. We have seen record levels of upstream investment between 2011 and 2014 and given the scale of many of these projects there is a lag between the final investment decision (FID) and first production.Offshore projects can easily take four years from FID to first production.

OPEC for the last 12 months has been engaged in a war of attrition with US shale producers, not only refusing to cut supply but pressing ahead with its upstream investments. On the face of it this is a war that it appears OPEC will win, with the hedging positions taken by US producers now expired and many of them facing dire financial circumstances. However, if they do win it will be at the cost of substantial national deficits.

Furthermore, advances in downhole completions have significantly increased the initial flowrates achieved in shale plays in the USA, so whilst production is now declining, well productivity is increasing as the operators focus on the quality of plays.

However, there are signs that the supply / demand gap may start to narrow next year. The latest IEA Oil Market Report projects that oil demand will increase by 1.4mbpd next year whilst Douglas-Westwood’s latest analysis, published last week in Q3 of our World Drilling and Production Market Forecast, highlights additions of only 368kbpd in 2016, followed by additions of nearly 1mbpd in both 2017 and 2018. This tightening of the supply/demand outlook could well be the catalyst for a recovery in both oil prices and in-turn the oilfield services sector as a whole.

ADIL, a leading independent energy consultancy, has recorded a 100% increase in demand for its Accelerated Conceptual Engineering (ACE) services as acquisition, merger and divestment activity by UKCS operators ramps up in the lower oil price environment.

A new level of well control training that for the first time combines simulated advanced technical and behavioral content has been successfully piloted by Seadrill and will now be rolled out globally.

Ahead of Tuesday’s congressional hearing in New Orleans, API highlighted the importance of offshore oil and natural gas development to the region's economic development.

"The oil and natural gas industry supports hundreds of thousands of Gulf Coast jobs," said Erik Milito, API upstream group director. "Offshore energy has driven Louisiana's economy for generations, and building on that growth requires a regulatory approach that embraces safe, responsible development."

API recently issued a request that the Bureau of Safety and Environmental Enforcement (BSEE) arrange workshops with each of the eight industry workgroups involved with analyzing respective sections of BSEE's proposed well control rule in order to address fundamental technical and economic flaws in the proposal that could increase risks to people and the environment.

"We are committed to working with government officials to ensure that America's offshore energy development is the safest in the world," said Milito. "Industry standards and smart regulatory oversight are key to our success, but the well control rule, as proposed, does not meet this commitment and could ultimately reverse existing improvements to offshore safety."

Further exploration and production of offshore oil and natural gas in the U.S. Atlantic Outer Continental Shelf (OCS), the U.S. Pacific OCS and the Eastern Gulf of Mexico could create hundreds of thousands of jobs, boost U.S. energy security, increase domestic investment and grow government revenue, according to recent studies.

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

Aberdeen-based behavioral change consultancy Optimus Seventh Generation, has reinforced its commitment to safety by securing a new agreement with Apache North Sea to deliver a series of unique training workshops in 2015 and 2016.

The Society of Petroleum Engineers (SPE) Aberdeen Section will launch its 2015-2016 events programme this next week with a presentation from the oil and gas industry regulator, the Oil & Gas Authority (OGA), on the topic of Maximising Economic Recovery (MER).

Drawing upon 28 years of industry experience, Ms Brenda Wyllie, Northern North Sea and West of Shetland Area Manager at the OGA, will outline the importance of MER in the UK, the key areas which should be prioritised by the industry and the best ways to drive future investment and improve efficiency.

The OGA was set up by the UK Government to supervise the offshore oil and gas licensing regime and ensure maximum collaboration between operators. The OGA became an Executive Agency of the Department of Energy & Climate Change (DECC) on 1 April 2015.

Shankar Bhukya, SPE Aberdeen chairman, said: “The formation of the OGA will, hopefully, improve the regulation of the UK oil and gas industry. It has been granted the governmental powers and resources required to increase production and co-operation efficiency and drive future investment in the UKCS.

“Securing Ms Wyllie as the speaker of our first evening meeting of 2015-2016 session is a real privilege and we are grateful that she will be sharing the OGA’s action plan with our members and non-members.”

Prior to joining the OGA, Ms Wyllie was a production manager with Oil & Gas UK where she managed the PILOT agenda, a joint forum between the UK Government and industry which aims to secure the long-term future of the UKCS and maximise economic recovery of hydrocarbons.

Ahead of her presentation, Ms Brenda Wyllie said: “The OGA has moved quickly to establish the new regulator, build a strong and experienced leadership team and take action to address the immediate challenges facing the sector.

“By striking the right balance between utilising the new regulatory powers with a more proactive and engaged approach, we can encourage greater collaboration and achieve maximum value from the economic reserves in the UKCS. Greater collaboration and more cooperative behaviours are essential to create a sustainable future for the UKCS and SPE Aberdeen’s technical meeting is the ideal platform to share our plans with those operating in the industry.”

The SPE Aberdeen technical meeting will take place on Wednesday 23 September from 6.30pm - for more information or to book a space please visit: http://www.spe-uk.org/aberdeen/event/building-the-oil-gas-authority-brenda-wyllie-northern-north-sea-west-of-shetland-area-manager-oil-gas-authority/.

Safe and cost-efficient marine access for oil and gas industry

Damen Shipyards Group has delivered a Damen Fast Crew Supplier (FCS) 2610 workboat, named AOS SWIFT for the Atlantic Maritime Group on 20 August 2015. This is the first Damen Twin Axe vessel to be used in the Middle East for safe passenger and crew transfer as well as for the transport of industrial persons, materials and equipment to unmanned offshore platforms in the Strait of Hormuz. Within less than 3 months, and this includes the vessel’s transportation from Damen Shipyards Gorinchem, Damen has customised, commissioned and delivered the stock vessel. Damen signed the contract with Atlantic Maritime Group, in the United Arab Emirates, on 1 June 2015. The vessel is going to be chartered to a Norwegian oil and gas company for its platform operations Offshore Oman.

Atlantic Maritime Group FZE ordered this workboat because it is reliable in rough water conditions with a high operational speed of 25 knots maximum.

Up to 35 industrial persons are transported to and from the platform daily. Although there is a heliport on the unmanned platform, it is much more efficient and less costly to do personnel transfer by sea. “Damen specialises in broader marine access in the offshore wind and oil and gas industries. We see a large potential in this marine access market to reduce costs and improve logistics as well as to partially replace helicopter flights which can be expensive and less efficient. And some unmanned platforms are without heliports and only have marine access,” explains Damen Business Development Manager David Stibbe.

The vessel was shipped from Damen Shipyards Gorinchem to Damen Shipyards Sharjah for further customisation and outfitting. The 25.75 metre long workboat’s twin hull design features robust fendering. A gas detection has also been installed and extra air-conditioning units were needed for the Middle East climate zone. This FCS workboat is also equipped with an additional hydraulically-operated 2200 kg crane with a reach of 8.6 metres and has deck space for two 20ft containers. The vessel is also equipped with a GPS Plot self-managed Man Overboard system and a Jason cradle for emergency personnel recovery. The workboat houses a total of 35 passengers plus crew, with accommodation ideally situated at the aft of the vessel for comfort.

Three of these Damen FCS 2610 workboats are used for the oil and gas industry worldwide; the other two are employed in the North Sea. In addition to personnel transfer, these vessels perform safety standby and logistics services.

At the World Port Days 2015 in Rotterdam, Imtech Marine has signed for a prolonged stay at the RDM Innovation Dock. The signing was done by Mark Linde (Global Director Design Technology & Engineering Imtech Marine) and Angelien Sanderman (Member of the Board University of Rotterdam). Traditionally the city of Rotterdam has an important position in the global maritime market. This is why Imtech Marine finds it is the perfect place to invest in a greener future and also raise interest of technical talents to come and work in the maritime sector.

Imtech Marine signed during the World Port Days 2015 in Rotterdam for a prolonged stay at the RDM Innovation Dock. From left to right Mark Linde (Global Director Design Technology & Engineering) on behalf of Imtech Marine and Angelien Sanderman (Member of the Board) on behalf of Rotterdam University of Applied Sciences.

Energy & Automation Lab

Part of the RDM Innovation Dock is the Imtech Marine Energy & Automation Lab, a collaboration with among others the University of Rotterdam. At this location talented technical students are working on innovative maritime technologies. With the Lab, Imtech Marine works on the realization of its ambition to be a frontrunner in maritime innovations.

A new future-oriented project is the construction of a Smart Energy Systems Demonstrator. This demonstrator will show a fully adjustable, and safe, energy distribution network that is based on direct current (DC). This demonstrator ensures a better overview of all the energy generation and distribution on board through a newly designed human-machine interface. The result is an advice for the ships crew which will improve efficient and economic sailing.

One of the previous projects was Aquabots; a race between two student teams with scale boats that sailed completely autonomous and emission-free, following the vision of Imtech Marine. Students also built two underwater robots. These open source robots, part of the Knowledge Centre RDM, were built based on OpenROV and are taking part in underwater soil research. Due to this success there will be a demonstration in collaboration with the Dutch Government, planned February 2016.

Subsea IMR provider, N-Sea Offshore Ltd, has successfully completed a fully integrated and managed service for Maersk Oil UK’s 2015 Subsea Inspection Program.

The work scope involved four field locations in the North Sea and utilized N-Sea’s IMR and subsea capabilities for a duration of 135 days. The four locations were combined within one scope which commenced on 1 March this year, thus achieving optimum levels of efficiency and productivity.

The Siem N-Sea was utilized for the scope, to combine ROV inspection services with IMR diving works. The vessel is part of N-Sea’s fleet of dive, multi-support and construction vessels designed to deliver a range of subsea services for offshore assets, platforms, FPSOs and renewables operations.

Roddy James, N-Sea chief operating officer

N-Sea’s chief operating officer, Roddy James, said: “The successful completion of this contract further consolidates our excellent relationship with Maersk Oil, which has always been based upon trust and transparency. The project was completed efficiently and safely with no incidents, and reflected our ability to always provide ‘safe, sound and swift’ solutions.

“At a time when identifying streamlined and cost effective solutions is crucial, combining ROV inspection services and IMR diving works into one work scope ensured this project delivered significant cost savings and achieved optimum efficiencies for the client.”

N-Sea is known for its innovative work as an independent offshore subsea contractor, specializing in IMR services for the renewable, oil and gas and telecom/utility industries, as well as for civil contracting communities. N-Sea provides near shore, offshore and survey services to major operators and service companies alike.

Caterpillar Oil & Gas is pleased to announce the introduction of Asset Financial Solutions, an innovative financial product that provides 100% financing new offshore or marine assets. The new solution enables Caterpillar to offer customers a tailored solution to optimize their business and expand their fleets without raising additional capital or taking on project construction risk.

“Our message is clear: we have a proprietary new financing model for the offshore industry that can help our customers succeed and grow despite down cycle market conditions,” Antti Ekqvist, Caterpillar Oil & Gas global offshore manager said. “The Asset Financial Solution was developed to be a simple, succinct financing source available for the complete duration of a customer’s project from the start of construction to post delivery and operation.”

The Asset Financial Solution affords customers zero project risk from the onset. The financial offering has the flexibility to account for all aspects of an offshore newbuild, including risk mitigation for unexpected construction or project costs. Strong collaboration between customers, Cat® dealers and Caterpillar is established at the project’s inception, with the asset being built to the customer’s requirements. Assets ideal, but not limited to, for the financing program include jackup and semi-submersible rigs, accommodation units, drillships, liftboats, offshore support vessels and tug boats . “At Caterpillar, we are firmly committed to partnering with our customers to help them win regardless of market conditions. It’s our job to design concise, easy solutions that help their bottom line and we believe the new Asset Financial Solution delivers on that promise and more."

The program is currently available for global oil & gas and marine offshore customers.

For more information on the new Asset Financial Solution, please contact Antti Ekqvist at This email address is being protected from spambots. You need JavaScript enabled to view it. or +1 713- 329-2232.

Subsea cable protection specialist, Tekmar Energy, is bucking the market trend after experiencing steady growth in the oil & gas sector during what has been a challenging time for the industry.

Since the start of the year, and against the dramatic fall in the oil price, the company has expanded its reach into new global regions, won multiple orders of repeat business and brought in six new clients so far this year including JDR Cables, FlexLife and GE Oil & Gas.

James Ritchie, CEO, commented, “Working under the stringent guidelines of the American Petroleum Institute’s API 17L specifications, we have invested and expanded our materials processes and in house testing to support the supply into this quality demanding sector. It has been tremendous to see the growth potential coming from the oil and gas division in what is described as a declining market”.

In addition, Tekmar has successfully supplied and installed equipment on the prestigious Martin Linge project. Their involvement on the landmark Norwegian development included supply of bend restrictors on the world’s longest high voltage subsea power cable at 170 km (105 miles).

Charlie Sullivan, Tekmar’s Technical Sales Manager, said: “It has been an extremely encouraging time for Tekmar following extensive business development, including the formation of a new oil and gas management team, seeing us gain increasing traction in the sector. This has resulted in us securing several significant orders for cable protection systems to be supplied on projects in Angola, Venezuela and Brazil to name a few.

“Not only are we continuing to supply our core market-leading products such as bend restrictors, j-tube seals, split pipe and TekDuct but we are also receiving more enquiries for bespoke solutions where we can deliver further added value through our innovative approach and ideas. As we continue to grow into new regions, there are an increasing number of opportunities and everyone at Tekmar is looking forward to realizing this potential.”

Tekmar’s growth has seen the company expand into the Gulf of Mexico and Middle East for the first time. To support its expansion in the United Arab Emirates, Tekmar has also appointed Emdad as its strategic, local partner.

Formed in 1979, Emdad is an established service provider and EPC contractor which has played a vital role in enabling Abu Dhabi's key energy players to achieve higher levels of reliability, and performance.

Chief operating officer at Emdad, Aly Abdel Malak, said: “Emdad is committed to strengthening its products and services offering to producers and contractors in the Middle East energy industry. As part of this, we are focused on bridging the gap between trading and service activities through our selective choice of suppliers and targeted development of related products.

“Our partnership with Tekmar is fully in line with this strategy because it enables us to answer the requirements of our customers in the high growth O&G offshore sector. At the same time this provides Tekmar with opportunities for local content through our Coating Services as well as a closer cooperation early in the sales process with our in-house offshore installation partner. We are confident that the value this partnership will bring will be distinct, meaningful and provide many benefits to clients.”

With more than 30 years’ experience, Tekmar is a market leader in the design, manufacture and supply of subsea cables, umbilicals and flexible protection systems for the renewable energy and oil & gas industry.

Tekmar is set to exhibit at the Middle East oil & gas conference ADIPEC for the first time in November where they will be on Emdad’s stand.

Tekmar’s renewable energy division has also announced success in the past month. The firm was selected to provide its innovative TekTube on a wind farm in the Netherlands as well as supplying TekLink cable protection systems on the U.S.’s first offshore wind farm, Block Island.

For more information about Tekmar, please visit www.tekmar.co.uk.

NYC-based PIRA Energy Group Reports that U.S. commercial stock set a new record high, but surplus narrowed week-on-week. On the week, Japanese crude runs eased fractionally. Specifically, PIRA’s analysis of the oil market fundamentals has revealed the following:

U.S. Commercial Stocks set New Record High, but Surplus Narrows W/W

Total U.S. commercial stocks built to a new weekly record the week ending September 4th. However, with a much larger overall build last year, the year-on-year excess narrowed. The commercial stock surplus should narrow again this week. The DOE weekly crude production number reflected their new lower Short Term Energy Outlook forecast, but another large crude balance item resulted in domestic crude supply of 9.50 MMB/D. Total petroleum demand growth rates remained strong, with declining gasoline growth offset by increased distillate growth.

North America Natural Gas Market Takes on Shade of Optimism

The hot weather initially expected through the first week of September has not only packed a big punch, but extended into a second week bringing with it intense heat normally not associated with the shoulder season. The week-in-progress will have the highest CDD accumulation since records dating back to 1950. Electric generation burns in excess of 32 BCF/D for the Reference Week and the week-in-progress tied to hot weather, together with now complete storage data for August, should quell if not entirely eliminate storage congestion concerns ahead of the heating season.

U.S. Coal Prices Sustain Downward Trend W/W

Coal price again moved lower last week, primarily due to a downshift in oil prices early in the week, as well as a ruling that the Colombian rail constrain is effectively over. Despite this freeing up of Atlantic Basin supply, API#2 (Northwest Europe) held up by the largest extent in the prompt, compared to greater declines for API#4 (South Africa) and FOB Newcastle (Australia). Coal market fundamentals remain unconstructive to price gains, with slack demand and insufficient supply tightening. PIRA continues to assert that the coal market will move in concert with oil pricing over the short term, limiting the upside for coal over the next 90 days.

U.S. Ethanol Prices and Manufacturing Margins Higher

After being stable for over a month, U.S. ethanol prices were higher the week ending September 4. Manufacturing economics also improved, boosted by lower corn costs.

WASDE Review

So, what now? We heard a lot of comments this weekend from grain merchandisers that producers should “reward” this post-WASDE rally with additional sales, both in 2015 and 2016. The reason for this is both technical and the general negativity that continues to surround commodities.

Mixed Climate/Energy Legislation in California

A bill to set Greenhouse Gas reduction targets for California beyond 2020 did not pass, largely due to intra-governmental turf battles. The short-term impacts of the bill’s failure are muted; long term targets have been in place via executive orders (unlikely to be altered soon). Carbon markets remained largely unfazed and regulatory efforts to achieve reductions post 2020 are ongoing. A pared-down SB350 did pass, enshrining ambitious 2030 renewables and energy efficiency targets. Failure to cement long-term emissions goals adds to policy uncertainty.

Japanese Crude Runs Ease Fractionally W/W

Japanese crude runs eased fractionally the week ending September 5th, while crude imports surged and crude stocks more than recaptured the large stock draw in the prior week. Finished product stocks drew modestly. Gasoline demand was slightly lower, while higher yield was largely offset by a rise in exports, and stocks drew a bit. Gasoil demand was higher, but so was yield, and stocks built slightly.

U.S. Ethanol Production Rises for the First Time in Four Weeks

U.S. Ethanol output increased to 958 MB/D from 948 MB/D as more plants completed their summer turnarounds. Ethanol inventories were drawn by 360 thousand barrels to 18.6 million barrels, which was 621 thousand higher year-on-year.

U.S. LPG Prices Strengthen with Seasonal Demand

Strength in U.S. LPG prices is persistent. As the off-season inventory building season comes to an end with doomsday scenarios of soaring inventories never materializing, prices are recovering ground lost due to these fears. Propane and butane at Mt Belvieu outperformed broader energy markets by logging gains of 2% to 44.8¢ and 57.6¢/gal, respectively. Ethane gained 1% in line with natural gas prices to maintain a 13¢/MMBtu premium above Henry Hub prices.

Russian Natural Gas Prices at Excellent Value

It has been a good time for Russian gas marketers and policymakers to test the waters on both short- and long-term structural changes to how gas is marketed. Russian gas prices are an excellent value right now relative to competitors and it is an enticing "buy low" moment for its customers. And when we use the term "buy" in the European gas market context, the definition ranges from the buying of more gas now to the buying of the idea that auction sales and Nord Stream II are positive concepts for the future.

Financial Volatility Lessens W/W

Financial volatility as measured by the VIX index lessened the week ending September 11th, but stresses are still seen as elevated. With regard to currencies, there continues to be local currency weakness in the Asian export economies, the commodity producers, along with other currencies such as the Turkish lira and South African rand. Commodities remain generally in decline, though there was again strength in palladium, aluminum and copper. The non-energy commodity index was higher on the week.

Summer’s Last Gasp for Counter-Seasonal Market Balancers?

The vital role in balancing the market played by counter-seasonal Mideast and South American markets, as well as newcomers Egypt, Jordan and Pakistan, cannot be understated in a world that should have seen a large-scale supply surge with the addition of three new production trains in Asia. All this without a corresponding uptick in demand for contracted buyers of those new volumes.

Global Equities Mostly Positive W/W

Global equities posted mostly gains the week ending September 11th. In the U.S., the strongest performers were housing and technology, while the laggards were energy and retail. Internationally, gains were also posted, with China, emerging markets, and emerging Asia being the best performers, while Latin America was down slightly.

U.S. NGL Production Slightly Higher in June

U.S. NGL production inched higher in June compared to prior month. Strong NGL production implies that field producers are still focused on wet gas production. The small observed increase in total NGL production would have been significantly greater with deep cut ethane and propane recovery. As robust as the latest data are, year-on-year NGL production growth declined.

Vladivostok Fertilizer Producer Signs Gas Supply Agreement with Gazprom

Gazprom Mezhregiongaz and NChG have signed a 20-year contract for the supply of natural gas to the Nakhodka Mineral Fertilizers Plant at the Eastern Economic Forum in Vladivostok. Gas supplies will begin in 2019 and, from 2021, will amount to 3.15-bcm/y.

U.K. Spark Spreads Remain Compressed

U.K. spark spreads remain very compressed along the curve, with demand destruction and growing renewable generation hitting load factors for CCGTs and, generally, thermal assets. Numbers are looking slightly more constructive now than a few months ago, but fundamentals are still not strong enough to allow for a price recovery.

RGGI Auction Exhausts Reserve

The September Regional Greenhouse Gas Initiatives (RGGI) carbon auction cleared at $6.02, exhausting the entire Cost Containment Reserve. Players without compliance needs were active bidders again. PIRA believes the additional supply should soften post-auction secondary market demand, limiting further significant upside for allowance prices. A willingness to continue to build allowance inventories suggests expectations that policy developments will provide value for RGGI allowances beyond what is implied by the current program.

Fuel Price Subsidies: Subsidy Removal in Oil Exporting Nations to Remain Gradual

Over the past 12 months, weak oil prices drove several governments to reform fuel subsidy policies. The countries that moved first were those taking advantage of depressed oil prices to provide political cover to remove subsidies. Many of these countries faced a growing fiscal burden from rising oil imports, and the move away from fixed (and previously subsidized) prices often coincided with retail price cuts. Then, earlier this year large oil exporting countries also joined in on the moves. But in many cases fuel prices increased. Further subsidy removal from this group has the potential to dampen future oil demand. The group accounts for nearly 30% of global oil demand growth through 2020. Yet PIRA believes political pressure and internal dynamics will prevent a widespread move towards market pricing, at least for now.

WASDE Needs Answers

Fun with numbers. Report day came Friday with corn, soybeans, and wheat all trading at or near prices that end in .75. Corn was trading $3.75, wheat was $1.00 more expensive, while soybeans had a $5.00 premium to corn. Significant?

Power Sector CO2 Emissions Ease; Auction Supply Ramps Up

Overall demand for EU carbon at auctions remains weak—even as weather-driven (hot/dry) power sector fundamentals (except for Scandinavia and the U.K.) have been bullish. PIRA expects a slight EU Allowance price correction with the easing of weather-driven demand and the return of regular, higher auction volumes. Looking ahead, the level of back-loading drops (and auction supply increases) as of Jan 1. While upcoming Paris climate talks can buoy general sentiment, exactly how an agreement can support EU Emissions Trading System prices is less clear.

Gas Producers Quarterly Earnings Call 2Q15

PIRA’s Gas Producers Quarterly Earnings Call highlights and summarizes the operational achievements of the top publicly traded U.S producers and delineates current activity by resource play from the 2Q15 earnings season.

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.

Sparrows Group, a global leader in offshore lifting related engineered products and services, has won a five-year deal with Abu Dhabi Marine Operating Company (ADMA-OPCO) in the Middle East.

The successful retender through the company’s local partner, Abu Dhabi Oilfield Services, will see Sparrows Group providing the operations and maintenance support to all cranes and lifting equipment aboard offshore platforms and the Al Hyleh Barge in the UAE and Zirku Islands. The agreement which covers ADMA-OPCO’s offshore installations – the Umm Shaif Super Complex, Zakum West Super Complex and the Zakum Central Super Complex – is initially a three year contract with the option for two one year extensions.

Sparrows Group will provide operations and maintenance support for cranes and lifting equipment to ADMA-OPCO

Stewart Mitchell, Sparrows Group chief executive officer, said: “We have established a strong and successful relationship with ADMA-OPCO since we began working together approximately 16 years ago. The work we have been contracted to do involves providing the total integrated management of cranes and other lifting equipment which optimizes the performance and reliability of all safety critical lifting operations.

“As well as providing offshore personnel who are supported by our onshore staff in Abu Dhabi and worldwide we will be supplying preventative maintenance, repair and refurbishment, spare parts, and comprehensive technical support.”

“We have placed an emphasis on growing our presence in the Middle East and an important part of this involves building upon our existing contracts. Our strong reputation for quality and a client focused delivery is proving to be particularly appealing to operators in the region.”

In addition to being experts in lifting and handling, Sparrows Group is a specialist in the provision of engineered products and services in cable and pipe lay and fluid power to the energy industry.

The firm has been expanding in the Middle East with bases in Abu Dhabi and Al Khor (Qatar), and recently opened new regional headquarters in Dubai. Sparrows Group has also formed a strategic partnership with the Zamil Group in Saudi Arabia recently.

Established originally in 1946, the Sparrows Group moved into the oil and gas market in 1975 and celebrates 40 years working offshore this year. They are one of the most well-known and trusted names in the oil and gas industry.

Leading international oilfield services company, Expro, has strengthened its operations in the North Sea with $25m in contract wins secured in the UK and Norway, where it will officially open a new facility later this month.

The company has been awarded a subsea contract for oil and gas producer, Wintershall Norway, in the Haltenbanken area of the Norwegian Continental Shelf (NCS). The five-year contract, for Wintershall’s Maria project, includes multi-well completions with two optional two-year extensions.

The scope of the contract includes the supply of a complete workover riser system including surface test tree and subsea landing string systems. Operations, maintenance and engineering support services will also be provided for the system including global riser analysis and life cycle fatigue monitoring.

In the UK Central North Sea, the company has won a contract with Premier Oil plc for its Catcher development to provide surface well testing and fluid analysis services on 22 subsea wells for three years, with options for three one-year extensions.

Expro have been the leading supplier of well testing services to Premier Oil since 2009, and are currently undertaking work in the Solan field development, west of the Shetland Isles.

These wins have been followed by further contract extensions with key clients across the UK Continental Shelf for well test, clean-up and slickline services.

Expro’s work in Norway will be supported by a major new base in Tananger set to officially open later this year. The 19,000 sqm facility will house several of the company’s key product lines including Drill Stem Testing and Well Testing, and will comprise an office building, yard and workshop with the capability to rig-up four well test packages, and service a further six, simultaneously.

Neil Sims, Expro’s Vice President – Europe CIS (Commonwealth of Independent States) comments:

“These contract wins are testament to the strong relationships Expro maintain with key clients across Europe. Our flexible solutions, commitment to safety, customer service and quality field performance in the region ideally position us to support these contracts.

“Expro’s world-renowned subsea technology and fluids expertise have been applied in similar successful projects across the North Sea, and we have provided over 2,000 well tests and 150 well testing packages to the global oil and gas industry.

“In the UK, developments such as Catcher are integral to the future of the North Sea, and these contracts will see Expro utilise local expertise and the supply chain in Aberdeen and Great Yarmouth.

“In Norway, we have underlined our commitment to projects in the region with significant investment in our new base and technology – including over $10m in capital expenditure for new equipment to services well test projects since 2012.”

Expro will be exhibiting at the SPE Offshore Europe Conference & Exhibition in Aberdeen at Stand 2C130 from 8-11 September 2015.

Chief Executive Officer, Charles Woodburn, is this year’s Technical Chairman and will focus on the conference technical programme, whilst Alistair Geddes, Executive Vice President, will lead a technical session on ‘Developing Talent to Meet Demand – I’.

In combination with daily technical presentations, Expro will feature a range of integrated products and services including Subsea Safety Systems, Well Test, SafeWells, Fluids, Well Intervention, Meters, Wirless Well Solutions, DST/TCP and Production.

For more information, please click here.

Xodus Group has been awarded a contract with Nexen Petroleum U.K. Limited to provide Front End Engineering and Design (FEED) services in support of the decommissioning of the Ettrick and Blackbird fields in the central North Sea.

The workscope will assess the best practice decommissioning methods for the main items of field architecture, including the structures, flowlines, umbilicals and risers. The work involves developing the decommissioning methodology for the field taking account of current industry best practice to ensure a technically robust decommissioning solution is developed.

Andrew Wylie, Scotland Subsea Operations Manager

Xodus offers a fully integrated FEED solution by leveraging the company’s wider capabilities such as process and facilities engineering, subsea, pipelines, risk management, and environmental services. The company has, to date, delivered more than 50 decommissioning projects for North Sea operators.

Andrew Wylie, Scotland Subsea Operations Manager, said: “Decommissioning in the current economic climate requires a mindset which is open to change. At Xodus, we deliver this by challenging the ‘norm’ and constantly using our clever thinking to drive innovation.

“While offshore infrastructure is complex, a logical approach to decommissioning which makes the most of operational data, lessons learned and latest technologies can reduce costs at every stage of the process.”