Believed to be the very first ‘all female’ managed marine seismic project management company in the world, Aqua GeoProjects is set to make a splash across an industry sector that until now has been a traditionally male-oriented environment. And with four industry- experienced women heading up the new company, this operation is aiming to do things a little differently!
The senior management team, consisting of Managing Director, Claire Jennings, PR and Quality Manager, Kelly Richards, Marketing, Emma Duncan and Senior Project Manager, Kerry Thain, between them have more than 35 years global marine seismic experience, having successfully delivered projects in Norway, Azerbaijan, Panama, Greenland, Ecuador and the Russian Federation.
Aqua GeoProjects provides cost-effective geophysical project management and bespoke seismic solutions for marine surveys within the oil and gas industry. The service offering includes bespoke shallow water vessel design, seismic project mobilization, technical outfitting, and specialized marine management services.
Drawing upon their extensive operational experience in deep-sea, shallow-water and transition zone seismic surveying, the Aqua GeoProjects team offers a range of niche-market services and qualified project personnel to a diverse client base.
Claire started Aqua GeoProjects in May 2014, and is motivated by the challenge of building the company as a niche player in the industry. “My desire is to build a prosperous business focusing on both the success of our clients and the health and happiness of our employees” Claire says.
In the early part of her marine seismic career, Claire was responsible for all areas of marine seismic operational project support, including supervising survey vessel crew changes and logistics provision in port locations all around the world. In more recent years, Claire’s focus has been towards financial management and project budgeting, and she has previously filled the role of Chief Commercial Officer for WGP Exploration. “Our driving ethos is to help our clients derive maximum benefit from every project that they undertake;” Claire says, “and in so doing, build upon our reputation for reliability, flexibility and professionalism.” “Being an all-female management team does make us a little different within the industry, but that does not mean that we should be under-estimated. We compete strongly and robustly for every project and we always ensure that we deliver on the projects that we undertake.” The company’s services include geophysical vessel outfitting and mobilization, design and fabrication, project management and procurement, experienced personnel provision and technical solution consultancy and transition zone operations.
Unlike larger seismic contractors, who must focus efforts on the collection of seismic exploration and reservoir monitoring data for their clients, Aqua GeoProjects provide the same levels of experience gained within the larger areas of the industry to smaller scale operations in emerging areas, where bespoke solutions are more often required and that need to be reliable, cost effective and scaled to fit the project budget. The company promises to solve extraordinary marine survey and seismic data collection problems, without costing the operator a fortune.
Caterpillar Marine announces it has completed the acquisition of ESRG Technologies Group, LLC, a vessel monitoring and data analytics leader in the marine industry. The acquisition includes ESRG’s comprehensive software suite for the remote monitoring and diagnostics of more than 65 on-board systems as well as the expertise to provide meaningful recommendations to ship owners to help increase efficiency, reduce downtime on their vessels and assist shipyards in reducing warranty expenses.
Headquartered in Virginia Beach, Virginia, ESRG has provided leading-edge data analysis and remote monitoring technology for assets in the marine and naval defense sectors since its inception in 2000. ESRG serves as a data analytics provider for the United States Navy, providing remote monitoring and analytics services for warships. Currently ESRG’s proprietary software is monitoring thousands of assets on vessels operating around the world, providing leading edge prognostic recommendations to ship operators and owners.
“As a result of the ESRG acquisition, Caterpillar Marine is evolving beyond engine-focused monitoring to provide monitoring and diagnostic solutions for an entire vessel,” Nigel Parkinson, Caterpillar Marine managing director noted. “Our customers are asking for solutions to drive down operating costs and maintain leading-edge uptime. Together with ESRG’s experience, Caterpillar Marine is prepared to offer solutions to our customers today to help them achieve this goal. This acquisition enables Caterpillar Marine to move closer towards our strategic vision of serving our marine customers as a complete systems solutions provider.”
ESRG will become a part of Caterpillar Marine, which operates within the Marine and Petroleum Power Division of Caterpillar Inc. ESRG software solutions will be rebranded as Caterpillar and sold and supported through the global Cat® dealer network. The technology will operate in alignment with the broader Caterpillar Inc., Cat Connect monitoring initiatives.
To achieve customers’ financial targets, Caterpillar is now able to make vessel productivity and equipment recommendations utilizing aggregated data and automated analytics supported by account-dedicated fleet advisors. Caterpillar Marine Asset Intelligence solutions can be implemented on vessels operating with Cat equipment or with any other competitive power solutions. The solutions are not limited to the engine, but focus on the entire ship as well as all of the operating systems. The suite of solutions will bring value to customers not only in equipment management, but also in the areas of productivity, safety and sustainability.
“Marine customers have been asking for this technology for the past few years as communication costs have declined and Big Data is becoming more commonplace. However, managing data and establishing analytical driven rules are not the core competency of most operators today,” Leslie Bell-Friedel, Caterpillar Marine Asset Intelligence business development manager stated. “Our role as Caterpillar Marine is to introduce a full suite of analytics solutions to our customers which are tailored to their individual pain points. Some customers will want to focus on increasing the reliability of machinery operations, while others will be focused on optimizing vessel productivity, ensuring safety, and/or operating more sustainably. This technology not only monitors running conditions, but it leverages analytics to understand the interrelations of different variables on the overall system and incorporates historical data to predict future failure modes. Regardless of the individual challenges, Caterpillar Marine is now able to offer a full suite of analytics solutions to help our customers achieve their objectives.”
“We are excited about joining Caterpillar Marine in providing marine owners and operators with technology and service solutions to increase uptime and decrease total cost of ownership,” Ken Krooner, ESRG’s President, noted. “We believe the combination of Caterpillar’s product and service leadership in the marine industry and ESRG’s technology and expertise creates additional customer value that neither of us would be able to deliver alone. Together, with the reach of the global Cat dealer network, we look forward to helping customers optimize their maintenance and operations across the total vessel, including both Cat and non-Cat equipment, as well as across an entire fleet.”
2015 may well be remembered as the year when natural gas truly announced itself as the major energy fuel source. With the announcement that Shell are targeting a $70bn deal for BG Group, and in doing so increasing their current LNG capacity to around 33 million tons per annum, the big dollars to secure gas capacity are coming into sharp focus. Should the acquisition complete, Shell will have access to gas resources from Trinidad & Tobago to Tanzania. BG’s Queensland Curtis LNG project could also provide a viable option to develop the major Arrow coal-seam gas development in Australia.
Elsewhere in Australia, Chevron is expecting to see first production from the defining Gorgon project by Q3 this year. A massive LNG project with estimated capacity of 15.6 million tons per annum, Gorgon is expected to boost the company balance sheet for 40 years. Described as a black hole for Capex following well known cost overruns – expected to approach 50% of the initial $37bn budget – safe and timely execution this year will be critical not only for the company but for the future of Australian supply capacity. Similarly, 2015 is a big year for the Wheatstone LNG sister project as major modules are completed and project integration continues prior to 2016 operation.
After much anticipation, the world’s first floating LNG vessel is also expected to begin operations for Petronas in Q4. The FLNG 1 represents a major technological advancement in the monetization of offshore gas assets. The success or otherwise of this unit, along with that of the under-construction Prelude (to begin operations for Shell in 2016), could signal the beginning of an era where stranded gas, marginal fields and major offshore gas discoveries can be processed offshore.
Acquisitions, major capital projects and large-scale technical developments suggest that 2015 is a fulcrum year for global gas supply.
Matt Loffman, Douglas-Westwood Houston
+1 713 714 4795 or This email address is being protected from spambots. You need JavaScript enabled to view it.
ABS Group of Companies, Inc. (ABS Group) is pleased to announce the appointment of Todd Grove as its new President and CEO. Grove most recently served as Senior Vice President and Chief Technology Officer for ABS Group's parent company, American Bureau of Shipping (ABS). With more than 30 years at ABS, in various senior technical and operational management roles across the world, Grove is a proven leader with a successful track record.
Grove holds a bachelor's degree in Naval Architecture and Marine Engineering from the University of Michigan, an MBA from the University of Houston and is a graduate of the Harvard Business School's Advanced Management Program.
ABS Group is a global leader in providing technical services that better enable companies to operate safely, reliably, efficiently and in compliance with applicable regulations and standards. Operating in over 30 countries, ABS Group offers services to the offshore and marine markets, the energy and power sectors, the chemical and pharmaceutical industries and to governments and governmental agencies globally.
With his global operational leadership experience and industry-recognized expertise in the marine and offshore markets, Grove is uniquely qualified to strengthen the alignment between the two organizations and to lead ABS Group into the future as the preferred strategic partner for ABS.
"ABS Group has a strong, sound strategy for the future and we are fortunate to have someone of Todd's experience and background to take on this important role," Chairman of ABS Group of Companies, Chris Wiernicki said. "I have great confidence in his ability to lead the ABS Group team to execute its business plans and I am optimistic about the organization's future."
Commenting on his new role, Grove said "I very much appreciate this opportunity and I look forward to leading such a well-known and respected brand. ABS Group has a unique range of technical services focused on meeting the needs of a strong, diverse client base. These services and the quality of our employees make me extremely confident in maintaining and growing the business across the globe."
Steel forgings are important building blocks for subsea components and are often tailored to meet end-users’ specific requirements. This results in long delivery times and repeated follow-ups throughout the supply chain. With DNV GL’s new Recommended Practice (RP) ’Steel forgings for subsea applications’ these requirements are now harmonized. The implementation of the RP will enable reduced lead times, enhanced stock keeping, interchangeability of forgings and help to improve and maintain consistent quality.
“Unifying requirements for forgings into an acceptable common specification is an important step in the work we are doing together with the industry to increase subsea standardization,” says Bjørn Søgård, Segment Director Subsea with DNV GL.
The standardization of steel forgings was targeted as a high priority initiative in a report issued by the Norwegian Oil and Gas Association in 2014 and also highlighted by the Society of Petroleum Engineers. The RP (DNVGL-RP-0034) has been developed through a joint industry project (JIP) involving 21 companies, representing steel manufacturers, subsea contractors and oil & gas companies. It contains requirements for qualification, manufacturing and testing, and complements existing industry codes for subsea equipment.
“We are pleased that this initiative, which has involved all players in the value chain from Forgemasters, Subsea Suppliers to End Users, has produced a document that captures best practice and now enables the manufacture of forgings in a predictable and consistent way,” says David Llewelyn, Norwegian Oil and Gas Association.
To help support the efficient implementation of DNVGL-RP-0034 and to further strengthen the standardization work and quality processes established in phase one, a second phase of the JIP is now being planned and is still open for industry participants to join.
The following companies has been part of developing the RP in phase one of the JIP: Aker Solutions, Brück, Celsa, Chevron, Det Norske, Dril-Quip, Ellwood Group, Eni, ExxonMobil, FMC, Frisa, GE, Japan Steel Works, Lundin, OneSubsea, Petrobras, Ringmill, Scana Subsea, Shell, Statoil and Total.
Read more and download the Recommended Practice here.
MacGregor, part of Cargotec, has been awarded a contract by Fujian Mawei Shipbuilding Limited for two subsea knuckle boom cranes to be installed on the world's first seabed mining vessel. Delivery of the cranes is scheduled for Q1/2017. The order was booked into first quarter 2015 order intake.
The 227m production support vessel has a beam of 40m. It has been designed by Singapore's SeaTech Solutions for Dubai-based owner Marine Assets Corporation (MAC). Following delivery at the end of 2017, it will operate under long-term charter to Canadian seafloor exploration company Nautilus Minerals Inc.
The MacGregor order consists of two knuckle boom cranes; a 200t active heave-compensation (AHC) subsea crane with the capability to operate to a depth of 2,500m, and a smaller 100t subsea crane.
Mike Johnston, CEO of Nautilus Minerals, says, "We are very pleased to have such a world class supplier providing key equipment for use on our Production Support Vessel. The cranes are an essential component in ensuring operations can be performed safely across all of our large working deck areas. We look forward to reporting on the progress of this equipment as we move closer to production in 2018."
"We are delighted that we have been chosen to supply the cranes for this exciting and prestigious new vessel," says Tom Svennevig, Vice President, Offshore Load Handling, MacGregor. "The demands of offshore operations are constantly changing. At MacGregor, we work hard to understand our customers' requirements and to ensure that we are always ahead of the competition in our ability to offer exactly the right hardware for the job, supported by our global service infrastructure."
The International Marine Contractors Association (IMCA) and the International Institute of Marine Surveying (IIMS) chose the final day of Ocean Business at Southampton (16 April) to announce the eagerly awaited start date for the IIMS accredited vessel inspectors (AVIs) scheme, for CMID (Common Marine Inspection Document ) work on a worldwide basis as 1 June. Those wishing to apply to become IIMS AVIs will be able to register their interest from the beginning of May in order to allow for processing of applications from 1 June.
“The accreditation process for CMID vessel inspectors, to be known as accredited vessel inspectors or AVIs for short, will be explained on a new website devoted to the CMID AVI community,” says Chris Baldwin IMCA’s Technical Adviser. “This initiative is being collaboratively delivered by IMCA and the IIMS and will radically alter the vessel inspection expectations of all stakeholders as the AVI badge will become the ‘industry standard’ symbol of quality for CMID reports.
“We wanted to announce the launch date where the industry was, for the evolution of the CMID has so much to do with us listening to the needs of the industry that we want to be able to answer questions on it at a public forum, and publicly thank so many who have helped steer us towards this important step in our efforts to continuously improve the CMID system.
“Now we have recognized the critical element of inspector competency and IMCA and IIMS will be working together to deliver CMID training and workshops for the benefit of the marine vessel inspector community.” Chris Baldwin added: “The changes to IMCA’s CMID itself in the shortly to be released version 9 are significant and extensive”.
“The new version is designed to be more useful than ever as an audit tool, and will see the return of the vessel supplements, which were withdrawn when version 7 was introduced in 2011. These 16 supplements will cover the common offshore vessel types, and are designed to be added to the general section of the document. The ability to add more photographs to the document will be included and we intend to ensure that the inappropriate generation of findings is reduced. We are planning to introduce the new version in July and will let the users get familiar with the new version before we commence the international workshop program in September.”
IMCA will also be launching an App at the same time, which has been designed for Android and Apple devices, and links users directly to the eCMID database.
The AVI scheme, being run and managed by MSA, a subsidiary of the accrediting body IIMS on behalf of IMCA, will be established on a worldwide basis with initial and refresher training courses being made available in all major regions where IMCA members operate. Having gained accredited status, vessel inspectors/auditors will be issued with an identify card embossed with both an IIMS logo and a declaration that the accreditation is recognized by IMCA. They will be able to get free download of the App and a comprehensive Vessel Inspectors’ manual.
Commenting on the launch of the AVI scheme, Mike Schwarz, IIMS Chief Executive Officer said: "We are thrilled to have been appointed to run the accreditation scheme for IMCA's CMID Vessel Inspectors. The scheme is the result of more than 12 months discussion and careful planning with IMCA.
“It is an important and challenging piece of work that will resolve a clearly defined industry need. Furthermore, it will put IIMS firmly at the heart of the international marine and maritime industry. We have already put in a great deal of effort behind the scenes and I look forward to our hard work bearing positive results for all involved as the scheme is unveiled and develops."
The next step for those eager to become AVIs is to download an application from the IMCA CMID Vessel Inspector website and complete their application. IMCA’s partners at IIMS are keen to ensure that applications meet the criteria demanded and will be able to offer regional support hubs to provide applicants with advice and guidance on completing the application form.
A program of workshops will be held around the world to explain the new features. Dates and venues will be published on the IMCA website, www.imca-int.com, and in the regularly published CMID update. Further information on workshops will be available from This email address is being protected from spambots. You need JavaScript enabled to view it. Tel: +44 (0)20 7824 5520; Fax: +44 (0)20 7824 5521.
CMID: the background
The Common Marine Inspection Document (CMID), published by IMCA, is a globally recognized vessel safety audit system that has done sterling work since 1999, meeting the aim of reducing the number of audits carried out on individual marine vessels by adoption of a standard format for inspection. It was joined in 2009 by the eCMID, along with a secure online database for the CMID reports, which are ‘living’ documents that can be kept and updated onboard a vessel.
In all nearly 2,600 users (operators, clients and inspectors) have made use of the eCMID database, with 887 vessels on the system by 1 December 2014. “However, we know that on average only 10% of downloaded CMID report forms are then uploaded onto the eCMID database when completed,” explains Chris Baldwin. “This data appears to support anecdotal evidence that the CMID user community is much broader than appears at first sight.”
Naturally, over the years CMID has been regularly reviewed and updated in the light of regulatory and technical developments. This year (2015) will see the release of version 9 reflecting that the current version, and the status of vessel inspectors, needed further revision to meet the demands of modern work practices and recent regulatory amendments in the maritime domain.
The revision re-emphasizes the need to make the CMID an integral part of the process of the ship safety and environmental protection management system, which is a requirement of the International Safety Management (ISM) Code. This places legally binding responsibilities on companies, owners, contractors and vessel masters and crew for safety, and environmental protection management.
CMID is there to assess three measures of vessel assurance – the safety of personnel; the protection of the environment; and to visually inspect the internal integrity of the vessel’s hull (i.e. its watertight integrity). The ownership by the Master and crew of the safety management system (SMS) cannot be stressed enough, and it is very apparent to vessel inspectors when the crew are properly engaged with the safety management system employed onboard. The inspector effectively acts as the Master’s independent observer with a responsibility to make an objective assessment of their vessel’s SMS, the top priority being to assure the safety of the Master and crew in the operation of the vessel.
The CMID applies to vessels 24m and over as well as the +500GRT, with the Marine Inspection Document for Small Workboats (MISW – IMCA M 189) applying to vessels less than 500GRT and 24m in length. The MISW has also been part of the review and will also employ the use of vessel supplements (though not as many as the CMID).
Further information on all aspects of the CMID and the inspection process is available from IMCA at www.imca-int.com and the IIMS at www.iims.org.uk.
Leading classification society ClassNK (Chairman and President: Noboru Ueda) held a press conference on 20 April in Singapore to promote the activities of its new Global Research and Innovation Center (GRIC).
Joined by representatives from Nanyang Technological University, ClassNK Executive Vice President Tetsuya Kinoshita explained the rationale behind GRIC and the current goals for the center.
The two main sectors that GRIC will cover are:
• Maritime technologies: Research and development into creating new technologies and improving existing technologies in the fields of safe/smart ships such as condition-based monitoring technology, and eco-technology covering areas such as alternative fuel engine technologies, and emission control
• Marine renewable energy: Establishing a marine energy test site for the tropics to support R&D in energy storage systems, biofouling materials, energy converters, prototype design testing, and creating possibilities to provide energy for maritime industry usage like in ports and harbors.
“The establishment of the Global Research and Innovation Center represents ClassNK’s commitment to developing innovative solutions,” said Mr. Kinoshita. “GRIC’s location in Singapore will make R&D projects accessible to international industry partners, and allow us to work with top academic institutions such as NTU and other sectors of the maritime cluster here in Singapore. We are excited to be building a smarter and greener future for the entire maritime industry from here in Singapore.”
In addition to presentations on ClassNK activities, representatives from both ClassNK and NTU gave in-depth presentations on the marine energy feasibility study and maritime energy test bed projects, as detailed below:
GMC LTD has just completed the Basic Design of a self-installing Buoyant Tower for the Prinos Field Development for Energean Oil and Gas (Athens, Greece).
The design brief was twofold to find a way to extend the life and utility of the existing Prinos infrastructure, and to find a cost effective and flexible solution for the green field expansion of the existing Prinos facility.
The existing wellhead platforms (Prinos Alpha) was reanalyzed, and strengthened to accommodate drilling using the Energean newly acquired and commissioned Energean Force (formerly Glen Esk) tender assist drilling rig. The focus was on finding an efficient solution to extending the utility of the existing infrastructure. GMC delivered a design for the retrofit of the existing platform that was both efficient and leveraged the local supply chain and workforce to deliver the platform modifications.
For the greenfield solution, GMC developed a full field plan to connect the greenfield facilities to the existing offshore processing facility (Prinos Delta), including j-tube and riser retrofits.
The greatest contribution to the efficiency of the whole development project was a reconfigured and redesigned GMC Buoyant Tower which has been engineered to accommodate the unique challenges of the field location. Away from any oil and gas centers, the challenge was to develop an offshore facility design that could be fabricated locally and self-installed. The key benefit of the design was that it could be installed without the use of heavy lift vessels, and using only locally available marine assets.
Mathios Rigas, CEO, Energean explained: “GMC has proven to be a true partner in helping us develop solutions that meet Energeans’ unique challenges. GMC’s unique approach to addressing technical and commercial constraints has helped in driving this project forward.”
Dr Steve Moore, Technical Director, Energean, added: “GMC has been an integral part in developing and shaping our contracting and execution strategy on this project. They (GMC) have delivered a Basic Design which gives us confidence that the execution phase of the project will proceed according to schedule and plan.”
While Vibor Paravic, General Manager GMC explained: ”GMC has succeeded in leveraging our 20+ years of experience in working on technically challenging projects to deliver a bespoke solution for both the brownfield and the greenfield challenges faced by Energean. We look forward to the next phases of the project. “
While the latest revisions to the terms for shallow water areas in Mexico’s first licensing round have increased the attractiveness of the Production Sharing Agreement terms by improving the contractor’s upside potential, the benefits remain significantly limited at higher prices compared to other fiscal regimes in the Americas, says an analyst with research and consulting firm GlobalData.
According to Will Scargill, GlobalData’s Senior Analyst covering Upstream Fiscal & Regulatory Regimes, even with revised terms, Mexico has yet to appease initial concerns that the adjustment based on pre-tax Internal Rate of Return (IRR), combined with royalty rates that adjust according to price, offers exploration and production companies too little upside.
Scargill explains: “The fact that royalties adjust to prices means the regime is relatively competitive in a low-price environment, insofar as a 30% bid for the state’s initial share of profit oil would be comparable to the fiscal regimes of Colombia and the US Gulf of Mexico at $50 per barrel (bbl).
“However, as prices rise, the royalty and profit oil adjustment mechanisms kick in at an increasing rate, meaning that in order to be comparably attractive to the Colombian and US regimes, the bid would have to be around 25% at $70/bbl, 15% at $90/bbl and 0% at $110/bbl.”
The analyst states that despite competitive economics at lower prices, companies will likely be reluctant to bid at levels that would give them little upside potential and the effect that the government can have with further revisions to the mechanism is limited.
Scargill continues: “Two possible options would be to base the mechanism on post-tax IRR rather than pre-tax, or to further increase the IRR thresholds by 5% each. However, the result of either of these options at a $90/bbl oil price would only be to increase the bid that is comparable to Colombia and the US to 20% rather than 15%.
“A 20% bid would mean that the state’s share of profit oil would range from 20–80% and contractors will pay royalties, taxes and fees on top of this. If the round is to be successful, the government will need to avoid setting an overly high minimum bid while striking a balance between market conditions and public sentiment,” the analyst concludes.
The new Singapore Service Centre (SSC) will streamline customer support and enhance customers’ experiences by giving them a single point of contact for all operational issues.
Singapore is a growing maritime hub, which has hundreds of ship managers with approximately 1,500 DNV GL classed vessels managed from Singapore. The new SSC, together with our existing technical helpdesk DATE (Direct Access to Technical Experts), will provide customers easier and improved access to DNV GL’s services.
“From product to customer support, we are continually working to improve our service offerings to our customers. By implementing initiatives such as the new SSC and DATE we will help ship owners and operators increase their operational efficiency and safety,” said Steen Lund, Regional Manager South East Asia & Pacific, DNV GL - Maritime. “The opening of the Singapore Service Centre simplifies the entry points into our organization for our customers.”
Caption: DNV GL's Clean Technology Centre in Singapore.
Streamlined Support
With the opening of the new Service Center, every customer will have clearly defined points of contact to DNV GL. Key account managers will manage the relationship with customers. DATE will remain the helpdesk for technical issues, while the SSC will provide operational solutions.
Customers can contact the SSC via email or telephone with their enquiry. SSC will handle this locally and if necessary consult with DNV GL experts in Høvik or Hamburg to provide the customers with the best solution. Customers who would like to discuss operational challenges and their potential options can speak to an expert to get an insight into potential solutions and plan accordingly.
“The Singapore Service Center will be manned by experienced Fleet in Service surveyors who understand the challenges faced by superintendents and fleet managers and therefore are best placed to address their needs. This will not only streamline and speed up processes, but also create a valuable platform for discussion,” said Sean Hutchings, the Area Manager for Singapore, Indonesia and Philippines.
“With the SSC we are taking a step forward in ensuring that our customers’ needs are addressed as efficiently and promptly as possible. It will let them tap into our global network and best-in-class service and expertise more easily than ever before,” said Pawan Sahni, Head of Singapore Service Centre, DNV GL – Maritime.
The SSC is currently available to customers in Singapore with plans for rolling out the service to other countries in South East Asia in the near future.
About DNV GL
Driven by our purpose of safeguarding life, property and the environment, DNV GL enables organizations to advance the safety and sustainability of their business. We provide classification and technical assurance along with software and independent expert advisory services to the maritime, oil and gas, and energy industries. We also provide certification services to customers across a wide range of industries. Operating in more than 100 countries, our 16,000 professionals are dedicated to helping our customers make the world safer, smarter and greener.
About DNV GL – Maritime
DNV GL is the world’s leading classification society and a recognized advisor for the maritime industry. We enhance safety, quality, energy efficiency and environmental performance of the global shipping industry – across all vessel types and offshore structures. We invest heavily in research and development to find solutions, together with the industry, that address strategic, operational or regulatory challenges.
In response to the findings of investigations into the Deepwater Horizon tragedy, and following a thorough evaluation of recommendations from industry groups, equipment manufacturers, federal agencies, academia and environmental organizations, Secretary of the Interior Sally Jewell announced on Monday, proposed regulations to better protect human lives and the environment from oil spills. The measures include more stringent design requirements and operational procedures for critical well control equipment used in offshore oil and gas operations.
“Both industry and government have taken important strides to better protect human lives and the environment from oil spills, and these proposed measures are designed to further build on critical lessons learned from the Deepwater Horizon tragedy and to ensure that offshore operations are safe,” said Secretary Jewell, who recently discussed the Administration’s energy reform agenda in remarks at the Center for Strategic and International Studies. “This rule builds on enhanced industry standards for blowout preventers to comprehensively address well design, well control and overall drilling safety.”
The proposed rule, which will be open for public comments, addresses the range of systems and equipment related to well control operations. The measures are designed to improve equipment reliability, building upon enhanced industry standards for blowout preventers and blowout prevention technologies. The rule also includes reforms in well design, well control, casing, cementing, real-time well monitoring and subsea containment.
The well control measures would implement multiple recommendations from various investigations and reports of the Deepwater Horizon tragedy, including the Bureau of Ocean Energy Management, Regulation and Enforcement/U.S. Coast Guard Joint Investigation-Forensic Equipment Analysis (September 2011); National Academy of Engineering (May 2012); National Oil Spill Commission (January 2011); Ocean Energy Safety Advisory Committee; Government Accountability Office and others. Interior’s Bureau of Safety and Environmental Enforcement (BSEE) thoroughly analyzed the results of the investigations, including nearly 370 specific recommendations, and conducted extensive outreach to derive further enhancements from stakeholder input, academia, and industry best practices, standards and specifications.
The blowout preventer, an essential piece of safety equipment used in offshore drilling operations, was a point of failure in the Deepwater Horizon event, but several other barriers failed as well. The cascade of multiple failures resulted in the loss of well control, an explosion, fire and subsequent months-long spill. In connection with this rulemaking, BSEE worked with a wide array of stakeholders to comprehensively address well control measures and equipment.
“We worked to collect the best ideas on the prevention of well control incidents and blowouts to develop this proposed rule – including knowledge and skillsets from industry and equipment managers,” said Assistant Secretary for Land and Minerals Management Janice Schneider. “This rule proposes both prescriptive and performance-based standards that are based on this extensive engagement and analysis.”
In May 2012, BSEE’s offshore energy safety forum brought together federal policy makers, industry, academia, and others to discuss additional steps the Bureau and the industry could take to continue to improve the reliability and safety of blowout preventers. Following the forum, BSEE received significant input and specific recommendations from industry groups, operators, equipment manufacturers, and environmental organizations.
“In addition to more stringent design requirements, the proposed rule requires improved controls of all repair and maintenance activities through the lifecycle of the blowout preventer and other well control equipment,” said BSEE Director Brian Salerno. “It would provide verification of the performance of equipment designs through third party verification, enhanced oversight of operations through real-time monitoring viewed onshore, and require operators to, during operations, utilize recognized engineering best standards that reduce risk.”
Today’s announcement is another step in the most ambitious reform agenda in the Department’s history to strengthen, update and modernize offshore energy regulations. Interior has made sweeping reforms for safe and responsible development, overhauling federal oversight by restructuring to provide independent regulatory agencies that have clear missions and are better-resourced to carry out their work, while keeping pace with a rapidly evolving industry. In the wake of the Deepwater Horizon blowout, explosion, and oil spill, BSEE strengthened preparedness and planning regulations applicable to oil and gas companies operating offshore, and raised the bar through new requirements for well design, production systems, blowout prevention, and well control equipment.
The Outer Continental Shelf is a critical component of our nation’s energy portfolio, accounting for more than 16 percent of the Nation’s oil production and about five percent of domestic natural gas production – bringing in revenues of over $7.4 billion dollars to the U.S. Treasury in 2014. There are more floating deepwater drilling rigs working in the Gulf of Mexico today than prior to the Deepwater Horizon spill, and drilling activity is expected to steadily increase over the coming year.
The public may submit comments on the proposed regulations during the 60-day comment period that begins April 15, 2015, when the proposed rule is published in the Federal Register. Comments may be submitted via regulations.gov, the federal government's official rulemaking portal. The proposed regulations are available here.
“Lessons still to be learned on fifth anniversary of Macondo”
The International Well Control Forum (IWCF) has initiated a pilot scheme to trial new behavioral training aimed at reducing problem areas in well control safety relating to human factors.
Crew Resource Management (CRM) has been designed to improve non-technical skills and encourage a change in attitude to raise awareness of human factors in well operations.
The CRM course aims to create a unique environment in which wells personnel can practice dealing with simulated well control situations in an interactive way. Participants are given tools that improve the sharing of information in teams and optimize decision making skills. Teams also get more skilled in working together as a group and supervisors enhance their operational leadership abilities.
Several IWCF accredited training centers are running the pilot scheme, BP America in Houston, Maersk Training in Denmark, Shell and The Well Academy in the Netherlands.
Jan Willem Flamma, Director of Training Development at The Well Academy said: “Initially, participants have been sceptical as they feel they have completed IWCF courses to a high level many times before. However, after working on their first scenario in the simulator they soon change their mind and see the value of CRM training. We have received nothing but positive feedback and participants have told us it’s the best well control course they have done.
“CRM training and scenario based well control training has been carried out in the industry for some time but now five years after Macondo the industry is still struggling to implement the learnings.”
By taking part in the IWCF pilot we are confident CRM training will be promoted and convince operators, drilling contractors and service providers that it is the right thing to do.”
The course is focused on the individual worker in a team setting as ‘portable team skills’ are needed for whatever crew they find themselves in. The emphasis is on the candidates taking responsibility and during the course they are educated to identify the signs and indicators that reflect a decline in their own and others use of interpersonal skills. It will also enable them to identify when their behavior or their actions may be interfering with effective team working.
IWCF is the independent organization that sets global training standards for well control.
David Price, CEO of IWCF said: “While we know that improvements in technology and management systems have reduced safety incidents, a culture shift in behavior and attitude is still needed. Following the Macondo incident, investigations revealed that processes where people could question, challenge or take action were not always followed. On the fifth anniversary of Macondo it is important that these lessons are not forgotten. We believe that by changing behaviors and making individuals feel empowered to act, CRM training is an important step to ensuring the welfare of everyone on an installation.”
Founded by the oil and gas operators in 1992, IWCF administers well control training, assessment and certification programs and is committed to creating a step-change in well control knowledge. Since then, IWCF has certified over 160,000 people in almost every continent through more than 220 accredited training centers.
IWCF is investing in new facilities at its headquarters in Montrose, UK to improve training for well control assessors and instructors who address drilling operations and well intervention activities. The organization is also introducing new levels to well control training including a new level 1 introductory online course, which will be available free to anyone with an interest in the industry.
NYC-based PIRA Energy Group reports that Saudi Arabia opts for market share over price. In the U.S., commercial stocks reach new record level even as surplus falls. In Japan, crude runs slightly higher, but lower crude and product stocks. Specifically, PIRA’s analysis of the oil market fundamentals has revealed the following:
Playing with Fire, Lessons from the 1980s
The recent decision by Saudi Arabia to opt for market share over price, at least temporarily, is similar in many ways to the decision reached in the mid-1980s. However, there are important differences as well, particularly with regard to the level of spare capacity. In the 80s the change in behavior was not instituted until spare capacity built to over 10 MMB/D. This time, the change was made in advance while spare capacity was still historically low. If the demand and non-OPEC supply responses to lower price are similar to what was experienced in the 80s, the very low level of spare carries a risk of a price spike in the not too distant future.
Commercial Stocks Reach New Record Level, Even as Surplus Falls
Total commercial stocks built last week to a new record high level. However, the stock build was half of last year’s, so the total commercial stock surplus versus last year narrowed for the first time during 2015. It was that week last year that U.S. commercial stocks started their long march up, from the low end of the range to the high end.
Japanese Crude Runs Slightly Higher, but Lower Crude and Product Stocks
Crude runs increased slightly, with crude imports staying low such that stocks drew modestly. Finished product stocks drew a similar amount. Gasoline and gasoil demands eased, with gasoline stocks modestly higher and gasoil stocks modestly lower. Kerosene demand rose and stocks drew 31 MB/D. The indicative refining margin eased on the week but still remains statistically strong.
Fracking Policy Monitor
BLM issued rules for fracking on federal lands, though unlikely to impact production. EPA methane rules are still awaiting proposal. Bottlenecks are possible: in the Bakken due the state’s crude processing standards; and in the Marcellus due to state and federal regs limiting options for wastewater disposal. Seismic events have caused restrictions on wastewater disposal, while also causing friction between the state government and the insurance industry in OK. The Denton, TX fracking ban seems destined to be overturned.
U.S. NGLs Follow Crude Prices Higher
Mt Belvieu LPG prices rose in line with WTI, with May propane prices increasing 7.2% to 57.5¢ and butane +6.6% to 68¢/gal. prices in Conway, KS also rose, but continue to be pressured by high stocks with discounts to Belvieu in May increasing to over 6¢ on both C3 and C4. Gulf coast ethane outperformed Henry Hub natural gas, increasing nearly 1¢ to 17.3¢/gal.
The EPA Will Issue the Proposed Mandates for 2015 by June 1
The EPA announced a proposed settlement with the API and AFPM regarding deadlines for issuing the annual requirements under the RFS program. The Agency will propose the mandates for 2015 by June 1.
U.S. Ethanol Output Drops to a 25-Week Low
U.S. ethanol production fell to a 25-week low 924 MB/D the week ending April 10 from 936 MB/D in the preceding week as several plants were down for spring maintenance. Inventories increased by 162 thousand barrels to 20.6 million barrels, with all of the build occurring in PADD I.
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.
Angela Durkin from Baker Hughes will join Maersk Drilling as new Chief Operating Officer (COO). She will assume her new role 1 May 2015 taking over from Jørn Madsen and report directly to CEO Claus V. Hemmingsen.
“We are very pleased that Angela Durkin will join Maersk Drilling. Angela brings vast experience with her from Baker Hughes, and with her technical competencies and enormous international experience from an oilfield service provider in the drilling industry, she is just the right fit for Maersk Drilling. I am confident that with Angela on board, we will have an even stronger foundation for partnering and working together with our customers in order to increase overall efficiencies and to bring down costs in the drilling operation and well completion,” says Claus V. Hemmingsen, CEO in Maersk Drilling and member of the Executive Board in the Maersk Group. Angela Durkin will assume the position as COO after Jørn Madsen, who will take up the position as CEO for Maersk Supply Service.
“Jørn has served Maersk Drilling for almost 25 years and has most recently been instrumental in the growth strategy and operational excellence success, which Maersk Drilling has seen during his tenure as COO. I wish to thank Jørn for his tremendous contribution to Maersk Drilling, and I am sure that he together with the team in Maersk Supply Service will build further on their already well-established success,” says CEO Claus V. Hemmingsen.
Angela Durkin holds a master degree in electronics from the Technical University in Braunchweig, Germany. She started her career in Baker Hughes in 1996 as a MWD Operator. She has held various positions such as Business Development Manager, Country Manager for Denmark, Vice President for Operations and Technical Support. Her latest role was as Corporate Vice President for Health, Safety and Environment.
She will report directly to CEO Claus V. Hemmingsen and be a member of the Senior Management Team in Maersk Drilling.
Operator Statoil has together with PL602 partners made a gas discovery in the Roald Rygg prospect in the Norwegian Sea. This is the second Statoil discovery in the Aasta Hansteen area in spring 2015.
“Statoil has completed a targeted two-well exploration program around Aasta Hansteen which aimed to test additional potential in the area and make the Aasta Hansteen project more robust. Both wells, Snefrid Nord and Roald Rygg, have resulted in interesting discoveries, which will now be further evaluated for future tie-in to the Aasta Hansteen infrastructure,” says Irene Rummelhoff, senior vice president exploration Norway in Statoil.
The well 6706/12-3, drilled by the Transocean Spitsbergen rig in the Roald Rygg prospect, proved a 38-metre gas column in the Nise Formation with very good reservoir quality. Statoil estimates the volumes in Roald Rygg to be in the range of 12-44 million barrels of recoverable oil equivalent (o.e.).
Roald Rygg is located less than 7 kilometers west of the Snefrid Nord discovery. The estimated total volumes in the two discoveries correspond to about 25% of the Aasta Hansteen recoverable volumes.
Aasta Hansteen will be the largest SPAR platform in the world and is the biggest ongoing field development project in the Norwegian Sea. It is one of the main projects in Statoil’s portfolio. The plan for development and operations (PDO) was approved by the Norwegian Ministry of Petroleum and Energy in 2013. Production start-up is expected in 2017.
Exploration well 6706/12-3 is situated in PL602 in the Norwegian Sea. Earlier this year, Statoil increased its equity share in PL602 through transactions with Rocksource ASA and Atlantic Petroleum Norge AS.
Subject to government approval, the PL602 partnership will consist of Statoil Petroleum AS (operator, 42.5%), Petoro AS (20%), Centrica Resources (Norge) AS (20%), Wintershall Norge AS (10%) and Atlantic Petroleum Norge AS (7.5%).
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