Harvey Gulf International Marine (HGIM) announces it has received both ABS (American Bureau of Shipping) class functional approval and USCG (United States Coast Guard) design bases approval on a 4,000 cubic meter LNG articulating tug barge (ATB) construction drawing package; the design accounts for ship-to-ship transfer and shore side resupply transfers. HGIM Chairman and CEO Shane J. Guidry said, “The development of this vessel design highlights our commitment to and involvement in the strengthening of the domestic LNG marine fuel market, and our continued commitment to a leadership role in developing a robust supply infrastructure”. Working closely with its design partner Waller Marine, and in conjunction with ABS and USCG HGIM has developed the design package ahead of construction thereby minimizing the potential for delays and significant cost impacts to the project during construction. Harvey Gulf continues to lead the United State of America (US) in the domestic marine LNG market, adding to its already substantial involvement in the area. This involvement has been highlighted by delivering the first US vessel to use LNG as a marine fuel “Harvey Energy” and the development and operation of the first “LNG Marine Refueling Terminal” in the US at Port Fourchon, Louisiana.
Photo credit: Harvey Gulf
The ATB has an approved design basis and it’s design meets all domestic and International requirement of a gas carrier, including the existing regulatory requirements defined in 46 CFR Subchapter D, 46 CFR Subchapter 0, the International Code for the Design and Construction of Ships Carrying Liquefied Gases in Bulk, 2016 edition (IGC Code), and applicable American Bureau of Shipping (ABS) Steel Barge Rules: Part 5 Chapter 2 Section 5 Liquefied Gas Tank Barges (as modified per 2016 IGC Code), and ABS Steel Vessel Rules Part 5C Chapter 8 Sections 1-19 (as modified per 2016 IGC Code and referenced within the ABS Barge Rules). “This project and the methodical approach in which it has been developed is very different from any other similar vessel design project undertaken thus far. We are designing a gas carrier the will provided ship-to-ship transfers of LNG to vessels utilizing LNG as a fuel and to do ship-to-shore transfers to small scale marine distribution infrastructure. All while having the ability to load at any Society of International Gas Tanker and Terminal Operators (SIGTTO) compliant off take facility” said Chad Verret EVP of LNG Operation at HGIM.
The design team through its diligence has put together a vessel that has four independent 999 cubic meter type “C” cargo tanks, the ability to load and discharge at a rate of 600 cubic meters per hour and transit speed in excess of 10 knts. The design incorporates a robust fire and safety system concept for both components of the ATB and the independent ability of the vessels to manage situations as they arise. Working together with Wärtsilä, the cargo systems integrator on the complete design, supply, and integration onboard the vessel, assures both functionality and confidence in the operability of the system. Another key design component of the design is the use of a sub-cooler for boil off gas (BOG) management, the teamwork in conjunction with Air Liquide using their Turbo-Brayton Technology (TB 350) as a means to condition the cargo as necessary to manage BOG.
The designs principal particulars are as follows:
ABS Class + A-1 Towing Vessel, + AMS, ACP, SOLAS, UWILD, OCEAN SERVICE
USCG Sub-Chapter M
| Tug Length | 128' |
| Tug Beam | 42' |
| Tug Depth | 19' |
| Horse Power | 5,100 bhp |
ABS Class + A-1 Liquefied Gas Tank Barge, ITB, UWILD, RELIQ, OCEANS SERVICE
| Barge LOA | 324' |
| Barge Beam | 64' |
| Barge Depth | 32'6" |
| Barge Max Draft | 16' |
| Cargo Capacity | 3,996 cubic meters |
Companies interested in Harvey Gulf’s Class-Approved LNG Bunker Barges should contact Chad Verret, Harvey Gulf’s Executive Vice President LNG & Deepwater Operations.
A key theme at the SMM Conference in Hamburg last week (and highlighted in Douglas-Westwood’s keynote address) was the innovation within both the offshore (oil & gas and renewables) and marine markets aimed at reducing costs and improving operational efficiency. This is bringing more oil and gas projects over the economic threshold of viability and also moving the offshore wind nearer the point where it can compete directly with other power generation options such as nuclear.
Douglas-Westwood (DW) has recently updated its work-class ROV outlook and sees potential for nearly 7.5% compound annual growth in expenditure from 2016 to 2020. This is function of recovery in the IRM, drill-support and construction support markets (which employ just over 900 WROV units), all of which have been impacted by the downturn.
Operating through the downturn has been a challenge for many ROV/vessel companies. We have seen distressed sales of units and expect more to come. Price pressure on the vessel contractors has reduced margins dramatically. Uptime of the vessel becomes highly critical – a few lost-days of vessel availability means the difference between a small margin or a loss on the project.
Moray Melhuish of ROV specialists ROVOP made this point in his address at the conference, highlighting that ROV technology is moving forward rapidly and a young fleet of units with modern (and manufacturer-supported) equipment and controls is key to ensuring uptime. Some of the technology drivers in the industry include the adoption of sonar and HD cameras and the ability to work in turbulent shallow-waters (to service the growing offshore wind market).
Like many other areas of the offshore market, footprint on the vessel (or platform) is also critical and development of electric tooling has the potential to reduce this, or allow the ROV to carry a greater payload.
Cost-efficient project development is of paramount importance to E&P companies and we continue to see projects re-evaluated and re-tendered. We are tracking this on a project-by-project basis and are already seeing the impact (in development costs/bbl capacity) for newly sanctioned projects.
Steve Robertson, Douglas-Westwood Faversham
A Teesside college has teamed up with an energy training specialist to help industry unlock opportunities in the offshore wind, and oil and gas sectors.
Redcar & Cleveland College and Maersk Training have come together to develop a new learning programme for professionals seeking to work on projects in these sectors.
Created by experienced industry professionals, the offshore wind program covers areas such as fire awareness, first aid, major and minor cabling, electrical awareness, working at heights and sea survival. It will be taught across two sites, at the college’s Corporation Road campus in Redcar and Maersk Training’s base in Newcastle, and will allow learners to study for the nationally recognized qualifications they need to work in this growing sector.
The move follows several developments that have created job opportunities locally in the sector. Earlier this year Norwegian energy giant Statoil announced it was looking for North East suppliers to work on the Dogger Bank development in the North Sea. Meanwhile, thousands of jobs are being created on Humberside where Siemens is building a new turbine factory – a scheme that will create work for the North East supply chain.
There’s also the prospect of further developments coming on stream, with the Government aiming to increase the UK’s installed wind energy capacity from 6GW (gigawatts) to 10GW by 2020. Redcar & Cleveland College has also struck an agreement with Maersk Training in Aberdeen to deliver accredited drilling courses at the college to people hoping to rise up the oil and gas industry career ladder. These include foundation and advanced programs in drilling competency, IWCF courses covering well control and well intervention, and a senior management and incident response program designed to upskill oil installation managers. The courses are scheduled to start this month and build upon the college’s existing learning programs for oil and gas professionals.
Graeme Wood, project and development manager at Redcar & Cleveland College, said: “To work in the oil & gas, and offshore wind industries you need essential skills and knowledge. This is why we deliver a range of nationally recognized unique qualifications that help people retrain or plan their entry into these sectors.
“We’re excited to be working with Maersk Training’s Newcastle and Aberdeen operations and together we aim to improve the skills base of the local oil, gas and offshore wind supply chains.” John Abate, managing director of Maersk Training in Aberdeen, said: “The oil and gas industry, and the offshore wind energy sector, are changing at a rapid pace, and there are numerous opportunities for people seeking employment. Although the oil and gas industry has been through a challenging time, the oil price has recovered recently and companies are still seeking highly skilled professionals to work on lucrative projects.
“Our partnership with Redcar & Cleveland College will help people to access training which allows them to operate safely and efficiently in these fast-paced industries.”
Statoil aims to conduct a major exploration campaign in several parts of the Barents Sea in 2017. The company is also strengthening its position in the area through several transactions with other companies.
“We have worked systematically on developing an exploration portfolio for testing good and independent prospects in 2017 and 2018. For 2017 we see promising prospects in different parts of the Barents Sea. For example, we want to explore the Blåmann prospect in the Goliat area, Koigen Central in PL718 on Stappen High and the Korpfjell prospect in PL859 that was awarded in the 23rd licensing round,” says Jez Averty, Statoil’s head of exploration on the Norwegian continental shelf (NCS).
Image courtesy: Statoil
In addition to an exploration well in PL849 (Blåmann), awarded in the Award in Predefined Areas (APA) in January 2016, Statoil and the operator ENI have also agreed on drilling a new exploration well in PL229 (Goliat) in 2017. Statoil has already a rig on contract which is suitable for operation in the Barents Sea. The company is working on obtaining approval from partners and authorities for an exploration campaign in 2017 covering between 5 and 7 wells in the Barents Sea.
During the past months Statoil has entered or increased its share in five licences in the Norwegian part of the Barents Sea by a number of agreements with Point Resources, DEA, OMV and ConocoPhillips.
“Giving us access to new acreage, the transactions demonstrate our belief in continued exploration potential on the NCS. We have played a leading role in the Barents Sea for 40 years, and we are still a guarantee for high activity in the area,” indicates Averty.
New and major discoveries are crucial to maintain the current NCS production level up to 2030 and beyond. The areas off North Norway will play a key role in reaching this ambition.
“Through these agreements we are strongly increasing our presence in the Hoop area, we are fortifying our position around Johan Castberg, and we see new opportunities in the southwestern part of the Barents Sea,” says Averty.
Statoil completed a comprehensive exploration campaign in the Barents Sea in 2013-2014 without any impact discoveries, but with additional volumes to Johan Castberg through the Drivis discovery. Exploration is a long-term process requiring patience, and information from the previous campaign has been used to further deepen the company’s understanding of the petroleum potential of the Barents Sea.
“We are working actively on replenishing our exploration portfolio through government awards, developing new ideas in existing licences and making agreements with other companies on acquiring licences. This provides a good basis for exploring more interesting opportunities,” says Averty.
“We have also worked efficiently on reducing costs by developing new technology, such as Cap-XTM, and improving drilling efficiency. The wells to be drilled in the south-eastern part of the Barents Sea next year seem to be the most inexpensive offshore exploration wells throughout Statoil,” continues Averty.
Through the Barents Sea Exploration Collaboration (BaSEC) the industry has formed a good basis for carrying out safe and consistent drilling operations. The industry’s joint seismic data gathering in 2014 further demonstrates its will and ability to solve common issues efficiently while taking into account other interests in the same areas.
All agreements are subject to government approval.
| Seller | Licence | Area | Share | New Statoil Share |
|---|---|---|---|---|
| Point Resources | 722 | Hoop | 35% | 35% |
| ConocoPhillips Skandinavia AS, OMV (Norge) AS | 615 | Hoop | 25%/ 20% | 80% |
| ConocoPhillips Skandinavia AS, OMV (Norge) AS | 615B | Hoop | 25%/ 20% | 80% |
| ConocoPhillips Skandinavia AS, DEA Norge AS | 718 | Stappenhøyden | 30%/ 10% | 60% (operator) |
| ConocoPhillips Skandinavia AS, DEA Norge AS | 720 | Stappenhøyden | 30%/ 10% | 60% (operator) |
Equipment that simulates acoustic positioning operations on dynamically positioned (DP) rigs and ships, has been supplied by Sonardyne Brasil Ltda. to vessel control and automation company, GE Power Conversion for their new training school in Macaé.
The Sonardyne Marksman hardware and 6G Sim software will be used to provide student DP Officers (DPOs) with an understanding of the important role acoustic positioning has in assisting a vessel to remain in a specified location whilst underwater operations are being conducted.
The Sonardyne Marksman acoustic simulator equipment supplied to GE will help train the next generation of Brazilian DP Officers.
DP is the automated control technology that enables a deep water mobile drilling unit, well intervention, survey or construction vessel to maintain a predetermined heading and position, fixed or moving, using its own thrusters and propellers.
To counteract the effects of wind, current and wave action, all DP systems require aiding from position and motion sensors in order to calculate the required steering angle and thruster output needed to keep the vessel in the required position. Subsea acoustic positioning, along with satellite navigation, surface-based lasers and high performance attitude sensors form the primary suite of sensors that a DP system is interfaced to.
Sonardyne’s Marksman system calculates a vessel’s position relative to an array of transponders deployed on the seabed. The technique is known as Long and Ultra-Short Baseline (LUSBL) and it provides an accurate and highly stable position reference for DP vessels where remaining in a specified location is a critical operational requirement.
The Sonardyne equipment now installed at GE’s Macaé facility includes a Navigation PC running the Marksman LUSBL application, along with 6G Sim, a software application that simulates an array of transponders on seabed transmitting signals up to the surface. The system has been interfaced with GE’s well-proven ‘C’ series DP desk to provide DP operators with an onshore training experience that is realistic as possible to being offshore.
Commenting on the supply of Marksman to GE, Mark Carter, Global Business Manager for DP and Drilling at Sonardyne said, “Our technologies are deployed in all of Brazil’s deep water fields, helping to survey pipelines, install structures and drill wells.” He added, “Simulator-based training, like that offered by GE in Macaé and ourselves in Rio das Ostras, not only helps maximise equipment performance, it also reduces operational risk. We’re delighted that GE has selected Marksman to help train the next generation of Brazilian DPOs.
For more information on Marksman LUSBL, click here
LQT Industries, LLC, a full-service provider of high quality accommodation facilities, design-build construction services, and support services to the energy and industrial markets, has delivered their first aluminum blast rated rental building to a petrochemical company in Louisiana.
“LQT continues to expand their aluminum building technology with blast rated modules (BRM) for use in a variety of industries. Our customers are increasingly seeing the benefits of aluminum for its strength, durability, low maintenance, and continuing track record of success in some of the harshest conditions,” said Bill Guidry, VP at LQT Industries. “Whether E Houses, offices, RIE’s, man camps or operator shelters, LQT’s aluminum buildings meet the demand.”
LQT expanded into the petrochemical/industrial market in 2015 and estimates that 25% of current revenue is generated from the industrial/petrochemical market segment. The company currently has projects for fire and safety, new construction, equipment rentals, and blast rated rental buildings in this market. The high quality of service and after-market support for which LQT is known in the offshore energy sector has been a key factor of growth in the petrochemical/industrial market.
LQT is also shipping over 27 offshore aluminum modular buildings with auxiliary equipment to support offshore Gulf of Mexico operations for major oil and gas companies. “We are extremely encouraged by the response we are getting from our customers. Our aluminum buildings and service set the standard in the GOM,” said Randy Dardar, Broussard Operations Manager at LQT Industries.
Shell announced on Tuesday, September 6, 2016, that production has started from the Stones development in the Gulf of Mexico. Stones is expected to produce around 50,000 barrels of oil equivalent per day (boe/d) when fully ramped up at the end of 2017.
The host facility for the world’s deepest offshore oil and gas project is a floating production, storage and offloading (FPSO) vessel. It is the thirteenth FPSO in Shell’s global deep-water portfolio and produces through subsea infrastructure beneath 9,500 feet (2,900 meters) of water. Stones underscores Shell’s long-standing leadership in using FPSOs to safely and responsibly unlock energy resources from deep-water assets around the world.
Stones is the world’s deepest oil and gas project, operating in around 2,900 meters (9,500 feet) of water in an ultra-deep area of the US Gulf of Mexico. Photo courtesy: Shell
“Stones is the latest example of our leadership, capability, and knowledge which are key to profitably developing our global deep-water resources,” said Andy Brown, Upstream Director, Royal Dutch Shell. “Our growing expertise in using such technologies in innovative ways will help us unlock more deep-water resources around the world.”
Stones, which is 100% owned and operated by Shell, is the company’s second producing field from the Lower Tertiary geologic frontier in the Gulf of Mexico, following the start-up of Perdido in 2010.
The project demonstrates Shell’s commitment to realizing significant cost savings through innovation. It features a more cost-effective well design, which requires fewer materials and lowers installation costs; this is expected to deliver up to $1 billion reduction in well costs once all the producers are completed.
The FPSO is also specially designed to operate safely during storms. In the event of a severe storm or hurricane, it can disconnect and sail away from the field. Once the weather event has passed, the vessel would return and safely resume production.
Shell’s global deep water business is a growth priority for the company and currently produces 600,000 boe/d. Deep-water production is expected to increase to more than 900,000 boe/d by the early 2020s from already discovered, established reservoirs. Three other Shell-operated projects are currently under construction or undergoing pre-production commissioning: Coulomb Phase 2 and Appomattox in the Gulf of Mexico and Malikai in Malaysia.
- Visit the Stones project page to watch a film and download fact sheets
Kongsberg Maritime has launched a new portfolio of fully ‘Integrated Vessel Concepts’ designed to harmonize handling, operations and energy systems on a wide range of specific vessel types. The concepts are the product of the company’s new ‘Integration’ strategy, which has been established this summer to leverage existing and new KONGSBERG technology to achieve tangible operational efficiency improvements.
With its new Integration strategy applied to specific vessels, KONGSBERG has created a new level of integration to enable more dynamics and distributed power management between disparate systems on board. The first set of vessels types to receive Integrated Vessel Concept configurations cover a wide spectrum of maritime operations. Vessel types include: Container, Forage Carrier, FPSO, Inspection Maintenance & Repair, Research, Ro-Pax, Shuttle Tanker, Small Scale LNG, Superyacht, Trawler and Wind Farm Support.
Image courtesy: Kongsberg Maritime
To facilitate Integrated Vessel Concepts, KONGSBERG is further developing its scope of supply to the global shipbuilding industry with focus on electrical systems including switchboards and drives. Electrical systems will be fully integrated with on board technology, ensuring optimal power consumption for dynamic vessel operations. With integration between disparate systems, distributed power management, data sharing on board and ashore can be significantly improved, facilitating enhanced decision making across the operational chain.
Though purposely designed for a broad range of vessel types and customizable to specific requirements, several specific new systems have already been developed for use within KONGSBERG’s Integrated Vessel Concepts. These include for the first time, the vessel dynamics integrated into the power management layer, providing a new concept for Energy Control. Integrating all elements of the power plant to the energy control layer and distributing control functions closer to the consumers with fast acting sensors, redefines the definition of efficiency.
Dynamic Load prediction (DLP) – a new Dynamic Positioning (DP) system to predict power usage for a vessel’s thrusters, Dynamic Inertia Control (DIC) and Dynamic Supervision & Control (DSC) are some of the new features enhancing energy control for DP operations. Solutions for power plant optimization include power regeneration using permanent magnetic electric motors for rotating equipment and enhanced battery solutions for peak shaving and storage. Examples include systems for vessels with large rotating equipment like winches and electric gangways, which are designed to convert motion into power.
Already highly regarded as a maritime technology company through its delivery of extensive i.e. automation, navigation and maneuvering systems for merchant and offshore vessels, KONGSBERG is actively developing existing partnerships and creating new partnerships with industry leaders to facilitate its new energy and engineering innovations. The company’s work in EIT projects forms the basis of its expanded energy focused product line, which will be further developed and integrated with more recognizable KONGSBERG technology for automation and operations.
“A primary driver for the development of our Integration strategy and Integrated Vessel Concepts is conservation and predictable utilization of energy, resulting in lower fuel consumption and the associated environmental benefits. However, we also want to create ‘free’ energy for hybrid or even fully electric power configurations, which are now becoming more viable due to less expensive batteries and more sophisticated power management,” said Srinivas Tati, Vice President, Business Development, Kongsberg Maritime. “Our approach to integration goes much deeper though. We have studied in-depth how different vessels operate to understand how the unification of on board technologies can change how we think about and conduct maritime operations at every level.”
Watch the video, ‘Welcome to a new world of integrated performance’
Harris CapRock Communications launched its OnePath long-range wireless radio to address the growing demand for bandwidth in the cruise, energy and commercial maritime industries.
The OnePath radio offers a unique mode of connectivity that is complementary to Very Small Aperture Terminal (VSAT) technology, providing higher throughput and increased redundancy.
The radio enables a fully secure, localized wireless data/voice network complete with traffic management. It provides first/last mile connection and can close links in excess of 160 km with appropriate heights. Licensed or unlicensed spectrum options are available with throughputs of up to 400 mbps. It is equipped with operating modes for Point-to-Point and Point-to-Multi-Point applications.
“The OnePath radio solution offers best-in-class throughput performance and spectrum efficiency and is lightweight, rugged and easy to deploy,” said Matthew Broida, vice president, marketing, Harris CapRock. “It offers extremely low latency to ensure rapid delivery of high bandwidth applications including VoIP, real-time video, teleconferencing and sensor traffic.”
The OnePath radio is part of Harris CapRock’s One Clear Path promise – offering a robust, always-on communications experience delivered by a secure, optimized network that is supported by a worldwide redundant infrastructure.
The 2017 Offshore Achievement Awards were on September 7, 2016 at this year’s Intelligent Energy conference, taking place in Aberdeen for the first time.
Following a record 30th anniversary year (in terms of both entrants and attendees) for the awards in 2016, event organisers the Society of Petroleum Engineers (SPE) Aberdeen and returning principal sponsor TAQA are looking forward to hearing the success stories of both companies and individuals when entries open on 3 October. As in previous years, entries are welcome from both the offshore oil and gas and renewables sectors.
Categories this year will continue to feature a heavy focus on technology with The Innovator, Emerging Technology, Safety Innovations and Environmental Innovation Awards remaining an important part of the line-up.
Last year’s Significant Contribution Award winner, Dan Purkis
Similarly, individuals will be eligible for the Young Professional, Above and Beyond and Significant Contribution categories, whilst businesses can apply for the Great Large and Great Small Company, Outstanding Skills Development Programme, Export Achievement and Collaboration.
This year will see the return of SPE Aberdeen director Ian Phillips as chairman of the awards. Ian is also chief executive of the Oil and Gas Innovation Centre and part of the Intelligent Energy 2016 Executive Committee.
Ian said: “In the middle of a significant downturn, last year’s awards were an encouraging boost for the offshore industry, and a reminder that innovation and collaboration are still a vital part of the current much-needed cost-reduction efforts.
“A key part of ensuring this innovation continues is by encouraging the development of new ideas and technologies, which is why Intelligent Energy is such a perfect platform to launch this year’s awards. The conference theme, ‘New Horizons: Intelligent Energy in a Changing World’, is completely aligned with SPE’s mission to exchange knowledge related to exploration, development and production, the foundation of the Offshore Achievement Awards.
“With just under a month until entries open for this year’s awards, we again urge anyone with a success story to come forward and be recognised. Previous winners have used the OAA accolade in a number of ways, from peer endorsement of their technology to recognition of their workforce. We hope to see the 2017 finalists and winners continue to build upon this momentum.”
Last year’s Significant Contribution winner, Dan Purkis, was part of the opening breakfast for this year’s Intelligent Energy. He said: “Winning the 2016 Significant Contribution Award wasn’t just a great honour, it has also served as a platform for recognition, aiding Well-SENSE’s exposure and leading to enquiries from operators and service companies around the globe.
“I would whole heartedly encourage those considering entering the awards to do so; celebrating success has never been more important.”
Entries from UK-registered companies operating within the renewables or the oil and gas industry will open on Monday 3 October, 2016.
The 2016 Offshore Achievement Awards categories are:
The awards are open for entries until Wednesday 30 November, 2016. The black tie ceremony will take place at the Aberdeen Exhibition and Conference Centre on Thursday 23 March, 2017. For further information and entry criteria, please visit www.spe-oaa.org.
The SPE Aberdeen Section is the largest in the UK with more than 2,500 members and is run entirely by volunteers.
SPE Aberdeen members represent a range of ages, genders and nationalities, and the Section supports student chapters at five universities in Scotland. SPE Aberdeen works closely with the oil and gas industry, Scottish universities and local schools, institutes and academia, to advance the learning and technical excellence in all aspects of the industry: offshore, onshore and internationally.
SPE Aberdeen won the SPE International Award for Section Excellence for the sixth consecutive year in 2015. For more information on this award winning section, please click here.
Gullfaks Rimfaksdalen (GRD) was scheduled for start-up on Christmas Eve this year, but the project has worked faster and now the field is on stream – at lower costs than planned.
The project delivered is more than NOK 1 billion below the estimate of the plan for development and operation (PDO), reducing costs from NOK 4.8 billion to around NOK 3.7 billion.
"I am pleased to see that the project starts up four months ahead of plan, demonstrating good and efficient project management," says Torger Rød, senior vice president for project development in Statoil.
Image courtesy: Statoil
Over time we have focused on reducing costs and raising the profitability of our projects to ensure long-term activity and value creation on the Norwegian continental shelf (NCS). Based on a smart concept using standard solutions and existing infrastructure, Gullfaks Rimfaksdalen strongly proves that we are on the right track to succeed on this work," continues Rød.
Recoverable reserves are approximately 80 million barrels of oil equivalent, mostly gas. The licensees are Statoil (operator) (51%), Petoro (30%) and OMV (19%).
"The volumes from Gullfaks Rimfaksdalen help us reach our ambition of maintaining production and a high activity level on the NCS beyond 2030. We have a well-developed infrastructure and we will keep realizing opportunities in the North Sea," says Arne Sigve Nylund, executive vice president for Development and Production Norway.
"This development leads to more production, improved value creation and higher activity level on Gullfaks, and also throughout the value chain related to the field," continues Nylund.
The Gullfaks Rimfaksdalen development consists of a standard subsea template with two simple gas production wells, and possibilities for tie-in of two more wells. The well stream is connected to the existing pipeline leading to the Gullfaks A platform.
Gas and condensate are transported in existing pipelines to the processing plant at Kårstø north of Stavanger for processing, and from there the gas is exported to markets on the European continent. Gullfaks Rimfaksdalen is one of Statoil’s fast-track projects, aiming to realize resources quickly and inexpensively, for example by using existing infrastructure while it is still available.
Location: In the North Sea, around 5-15 kilometers southwest of the
Gullfaks A platform
Volumes: around 80 million barrels of oil equivalent (boe) (gas and condensate)
Depths: water depth of around 135 meters, 3200 meters below the seabed
The Gullfaks field is operated from Statoil’s office at Sandsli in Bergen
CGG has announced that it has signed an agreement with GNPC Operating Services Company Ltd (GOSCO), an independent Ghanaian E&P services company, to form a joint-venture company dedicated to conducting high-end 2D, 3D and 4D marine seismic acquisition and related services in the territorial waters of the Republic of Ghana.
The primary aim of the joint-venture company, known as GOSCO Geoscience Limited (GGSL), is to make available world-class seismic vessels and state-of-the-art marine seismic acquisition technologies and services to oil and gas industry players operating in Ghana. The new joint venture will be a Ghanaian indigenous company and be based in Accra. Its creation also recognizes and supports the requirement for knowledge transfer and capacity-building in the Ghanaian E&P industry as well as the need for safe and efficient oil and gas operations undertaken to the highest international standards.
Jean-Georges Malcor, CEO, CGG, said: “We have joined forces with GOSCO to set up this joint venture as a response to recent growing industry interest in Ghana’s oil and gas potential. This move is another example of CGG’s strategy to work in partnership with local oil and gas players to benefit from their experience of working in the country while bringing them the benefit of CGG’s global expertise as a leading technology provider. We believe this joint venture will create a strong vehicle for growth in Ghana’s E&P industry.”
U.S. Crude Market Flat in August, But Tightening Is AheadCrude prices and regional differentials were nearly flat in August, but prices will improve through year-end, as an open export arb and closed import arb lead to a reduction in net crude imports and falling crude stocks. Production has returned to normal in Western Canada, but it continues to decline in the U.S. Midcontinent — except in the Permian Basin, where production is beginning to stabilize as the rig count rises.
U.S. production was again impacted by temporary shut-ins. While the losses tied to Tropical Storm Hermine were minor, it marked yet another of many events that have limited production during the injection season.
The large drop in French nuclear output so far this summer, by almost 7 GW year-on-year in September to date, is pushing gas plants to set French prices more often, and, in turn, this fact makes French prices naturally closer to its Italian counterparts, resulting in lower French flows to Italy. With the current Italy-France differential further narrowing for the upcoming winter months, we might not see a sustained flow from France. If the flows from France dry up, those from Switzerland, Austria and Slovenia might not be sufficient to fill the gap.
New England REC pricing has moved well below ACP levels, indicating adequate supply for the highest value markets. Near-term pricing may respond to expected load growth later this year into 2017. Between now and 2020, REC requirements increase, but they also fluctuate according to MA solar carve-outs. New wind development is critical: although there is significant capacity in the queue, additional wind build (beyond what is under construction) is required to meet demand. Longer term, valuing RECs depends on RPS policy and the desire for strong REC price signals — and initiatives such as IMAPP call this into question. Policies such as the recent MA law increasing clean energy purchasing and encouraging offshore wind can diminish the importance of RECs in incentivizing renewables.
Global equities were broadly lower on the week. In the U.S., only the energy tracking index posted a gain. Housing, consumer staples, and materials performed worse than the overall 2% decline. The international indices all did better than the U.S. The best performer was the Chinese tracking index, while Latin America was the worst performer.
For September, the markets should be focused on old crop/new crop soybean carry outs in the WASDE and new crop corn yield in the Crop Production report. How aggressive the World Board and NASS get in these two categories will set the tone moving forward, in our opinion. While both numbers should be objective, the bean carry out will certainly contain some subjectivity.
Manufacturing margins improved to the highest level in over five weeks. RIN values give back some of their recent gains.
Over the past 12 months, several large oil-exporting countries have been forced to address their subsidy burden and raise domestic fuel prices. Major policy changes for this group of countries have the potential to slightly dampen future oil demand, as most oil exporters still price domestic fuels at a fraction of the global average. But political pressure and internal dynamics are likely to prevent a widespread move towards market pricing. Recent history suggests that any further reforms will continue to be modest and gradual, while rising oil prices will relieve some of the urgency to raise domestic fuel prices. In the rest of the world, the vast majority of countries price domestic fuels at or above market levels. PIRA maintains its view that the threat to future oil demand from subsidy reform is overstated.
Despite a sizeable rise in pricing on Monday and Tuesday (pushing FOB Newcastle prices above $70/mt for the first time since mid-2014), coal prices closed on Friday down week-on-week, in response to the agreement between the Chinese government and coal producers to lift output. While PIRA believes that there will be some stimulation in China's coal production from the summit this week, import demand will likely remain strong over the next 30-60 days due to winter stocking requirements. However, beyond this period, we believe that if coal producers are given some discretion to fluctuate output (as it appears as if they have), they will exercise some discipline, as many mining companies in China are just now moving out of the red into the black. If this proves to be correct, import demand could remain fairly robust, perhaps even upward trending year-on-year over the next six to nine months.
Huge crude stock draw pulls overall commercial stocks down 13.7 million barrels this past week while the strongest reported product demand of the year limits product inventory build. Gasoline had its largest stock draw this summer as real demand was very strong, imports moderated and refiners substantially reduced refinery production. Crude stocks are forecast to decline again next week despite a rebound in crude imports with Cushing contributing 0.6 million barrels to the draw. Gasoline stocks to draw again, albeit at a much slower pace as seasonal demand weakness kicks in. Distillate demand should rebound, limiting its stock build in next week’s EIA data.
Significant power sector gas demand is starting to creep into European gas balances. The problem remains that this demand is not coming in fast enough to replace even the declining demand from storage injectors. While the month is still young, we are seeing how in late summer/early winter it sometimes has to be producers or Mother Nature (temperature) who save market balances from loosening, not power demand. We had forecast far more German gas-fired power demand coming in this month relating to the profitable hedging possibilities of the spark spread for the full month of September; however, as of yet this has not kicked in.
The EPA finalized regulations limiting May-September NOx emissions to assist with non-attainment problems for Ozone. It is generally similar to the proposal from last fall, though aggregate state-level caps/budgets have been relaxed slightly, and North Carolina is no longer covered under the program. Critical for currently traded allowances, EPA has finalized provisions to transition the accumulated CSAPR seasonal allowance surplus/bank with a discount factor. Current seasonal CSAPR allowance pricing is in the range of EPA’s high-end estimates of the costs needed to induce existing SCR controls to run harder and the costs of turning on idled SCRs/installing additional combustion controls. Assumptions regarding the cost of ammonia/urea are critical.
The S&P 500 moved significantly lower on the week as interest rates ticked higher and the market reflected on rising odds for a September rate hike by the FED. Volatility increased, but high yield debt and emerging market debt indices held firm. There was an uptick in longer-term interest rates in all the major countries we track, particularly Japan. The total commodity index was actually higher on the week, despite the decline in equities.
U.S. LPG prices gained as strong increases in propane demand led to a sharp drop in inventory gains. Mont Belvieu October propane futures prices improved by 2¢ or 4.4% to settle just above 49¢/gal Friday. Butane at the market center gained 4.6% to 65.2¢. Conway LPG prices outperformed those in TX, but remain about 3¢ lower on both species. Natural gasoline prices improved by 5.2%, easily beating out RBOB’s week-on-week gain. Ethane prices were also stronger, regaining a 20¢/MMBtu premium above Henry Hub gas –after dipping below it in recent weeks.
The production of ethanol-blended gasoline increased to 9,271 MB/D. Total inventories fell by 272 thousand barrels to 20.7 million barrels.
Technically, the books will not be closed on the 2015/16 Marketing Year until the end of this month, when the September 1 Quarterly Stocks report is released. Through a combination of various USDA reports as well as Census Bureau statistics, which often contradict USDA numbers, an almost final picture of the 2015/16 Marketing Year is getting clearer.
Runs eased only modestly, though maintenance should be gearing up. Runs will continue declining at an accelerating rate through much of the month. Crude imports remained little changed and a modest crude stock draw ensued. Finished product stocks built due to higher naphtha and kerosene. Demands were mostly lower. Refining margins have begun to improve from abysmal levels. For the most part, all the cracks improved on the week.
Poland’s state oil and gas company PGNiG does not foresee an out-of-court settlement with Russia’s Gazprom to reconsider natural gas prices, PGNiG Management Board President Piotr Wozniak said Sept. 8. PGNiG filed a lawsuit against Gazprom over gas prices last February, following its 2014 call for the energy giant to revise its gas price deal in line with recent gas market trends. Wozniak declined to disclose the terms acceptable for his company, saying that "only Gazprom knows the terms to which we will agree; it is not necessary to speak publicly about it."
The September RGGI auction cleared at $4.54, up one cent from June. Registered bidders numbered 50 — at the low end of the range for 2015/16. Players with compliance obligations picked up the majority of the allowances, but less than what was observed in recent auctions, suggesting that interest in speculative buying may be returning. Negotiations among RGGI partners regarding post-2020 caps have intensified, with some New England states favoring steeper reductions. Market players are still waiting for the next Stakeholder meeting date, scheduled for “early fall,” to get additional clues as to what the Model Rule could look like.
PIRA’s periodic survey of U.S. Refinery Turnarounds indicates that the next several months should see an above-average level of downtime. Planned crude unit outages are expected to amount to about 1.6 MMB/D in September, increasing to over 2.4 MMB/D for October. Outages are likely to be even higher because of unplanned events. On a weekly basis crude downtime peaks at around 2.6 MMB/D during early to mid-October. Upgrading unit downtime follows a similar but lower path, peaking at around 2.1 MMB/D in October. FCCs account for around one-half of the upgrading unit outages peaking in early October at about 900 MB/D. The first quarter of 2017 is also expected to be an active period for refinery turnarounds.
While last winter was characterized by energy demand losses due to the warming effects of El Nino, it's worthwhile to anticipate the reverse effects of the expected La Nina this winter, even though it may not be as strong as the stimulative 2010-12 La Nina. LNG demand outside of the growth markets of India and China is taking a hit on several fronts, not least of which has been caused by the weather.
Year-on-year growth in China’s fixed asset investment has decelerated sharply in recent periods. Investment in the manufacturing sector (which accounts for about a third of the total) was a key contributor to the slowing. The slump in this category, in turn, was related to the government’s push to reduce industrial overcapacity. China’s provincial GDP data for the first half of 2016 also pointed to the cost of economic restructuring, as provinces like Liaoning (a major producer of steel) and Shanxi (famous for its coal production) reported sluggish results. In Europe, economic data in the post-Brexit vote period have generally been better-than-expected.
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.
Churchill Drilling Tools, an oil and gas engineering company specializing in dart activated string technology, is celebrating after winning the acclaimed Innovation Award at the recent Press and Journal Gold Awards.
Churchill won the award for its innovative approach to technology within the drilling sector. The company’s flagship products, the DAV MX™ CircSub and the HyPR HoleSaver™ have been recognized for their versatility, performance and reliability in challenging environments.
This is the second award for innovation the company has won in the last six months, having scooped the Grampian Award for Innovation at the 2016 Elevator Awards in July.
It has been a standout year for the DAV MX™ CircSub which saw Churchill Drilling Tools implement a number of innovative improvements to the performance and reliability of the tool. The introduction of the Ultra-Series Dart (USD) increased the potential speed of activation by up to 25% and the 75% lower shear out pressure enables the tool to be used in wells with compromised hydraulics. A major operator has already put these new capabilities to use in a challenging high deviation well in the Norwegian sector where the USD was used on a hole cleaning, displacement and mud screening operations.
Churchill was also pleased to present a world’s first with the Emergency Shut-Off Dart. This new dart makes the DAV MX™ the first circulation valve with a proven back-up closing mechanism. This was of recent use to a major operator in the North Sea where a 17-hour milling section was completed without having to trip out to replace an over-stressed valve.
Additionally, the HyPR HoleSaver™ has also been recognized as an innovative contingency technology for drilling operations and has been employed as an insurance against stuck pipe in several territories, including the North Sea, the Gulf of Mexico and the Middle East.
Making use of ordinary drilling mud, the user-operated HyPR™ jetting dart can cut through a full strength sub in under two hours. Drilling engineers have the option of using either a Cementing Dart which allows for rapid side-tracking after cementing operations or, if an attempt to fish the BHA is preferred, a Fishing Dart can be pumped down, leaving a clean box to fish once the dart has cut the string free; the dart is then carried back to the surface as the cut pipe is withdrawn.
Mike Churchill, CEO, said of the award: “It is an honor for Churchill Drilling Tools to win the Innovation Award at the second P&J Gold Awards. It is a recognition of our team’s continued commitment to innovation and technical excellence – coinciding at a time where the industry is being urged to adopt new methods and support new technology.
“With our performance improvements to the DAV MX™ already being of value to major operators and our HyPR HoleSaver™ tool reflecting the demands of the industry for cost effective answers to its challenges – the Innovation Award is further evidence of our commitment to developing specialist tools which save operators time and money in new and exciting ways.”
GE’s Marine Solutions business (NYSE: GE) and Zentech Inc. announced the signature of a cooperation agreement under which the two parties will work together to provide advanced vessels for their marine and offshore customers.
Covering a range of vessel types, including self-elevating lift boats, drill ships and semi-submersibles, the agreement leverages the strong capabilities from both companies. While Zentech will contribute with its in-depth knowledge and extensive experience in design, GE’s Marine Solutions business will provide smart and advanced engineering expertise and technology in power generation, propulsion and control.
The Z-210 is a self-propelled, self-elevating, DP-2 capable, ABS Class, high-temperature (55 degrees Celsius) rated, four-legged mobile offshore unit.
Both GE and Zentech Inc. are working together to solve the challenges faced by the industry and meet customer demands for greater levels of coherence in vessel and system design while simultaneously striving to reduce the cost of construction and overall cost of ownership. The landmark long-term deal has already started to bear results with a first implementation contract, which sees GE set to deliver its electric power and propulsion, dynamic positioning and vessel control system solutions for Zentech’s Z-210, currently under construction at CSSC Huangpu Wenchong Shipbuilding Company Limited in China.
The Z-210 is a self-propelled, self-elevating, DP-2 capable, ABS Class, high-temperature (55 degrees Celsius) rated, four-legged mobile offshore unit capable of operating in water depths of up to 280 feet. Scheduled for delivery in 2018, the Z-210 addresses the growing needs for lift boats in the Middle East, Southeast Asia and Far East markets where the production, well intervention and platform support activities require the capability for a wide range of water depths from as shallow as 13 feet all the way up to 280 feet.
Zentech Inc. is a Houston-based marine engineering and naval architecture firm that enjoys a global presence and a deep industrial expertise, which encompasses dynamically positioned semi-submersibles, drill ships, jack-up drilling units, modular platform drilling rigs, barge rigs, fixed offshore platforms, floating production systems, risers and pipelines.
Ramesh Maini, president and CEO of Zentech commented, “This is a defining moment in the evolution of Zentech as one of the world’s leading designers of advanced offshore solutions. As specialist designers, we are proud to be working with GE and look forward to incorporating the best of what GE has to offer into our customers’ future vessels. It’s a great prospect for Zentech, and we strongly believe that this collaboration will provide immeasurable value for our customers.”
“We are committed to meeting the operational requirements of ship operators and marine companies. Thanks to the GE Store, GE’s Marine Solutions business has one of the broadest capabilities within the industry. From prime movers, smart automation and control systems to software analytics, we are able to provide a fully integrated solution for our customers to lower project risk and cost of ownership,” said Tim Schweikert, president & CEO, GE’s Marine Solutions business. “We are very much looking forward to working with Zentech on this project and in the future.”
McMurdo, the most trusted name in emergency readiness and response and part of Orolia Group, has announced a new family of EPIRBs that will accelerate the search and rescue process by combining multiple frequencies into a single EPIRB product.
The McMurdo SmartFind and Kannad SafePro EPIRBs will be the world’s first distress beacons that can support each of the four frequencies used in the search and rescue process: 406MHz and 121.5MHz for beacon transmission; GNSS for location positioning; and AIS for localized connectivity. This multiple-frequency capability will ensure faster detection, superior positioning accuracy, greater signal reliability and ultimately, accelerated rescue of people or vessels in distress.
“With this announcement, we continue our long tradition of market leadership and product innovation in the maritime industry,” said Justine Heeley of McMurdo UK. “From GMDSS shipsets to AIS man overboard devices to personal locator beacons, and now with these latest EPIRB advancements, we are dedicated to developing state-of-the-art technologies that keep people safe while navigating our world’s waterways,” she added.
Global and Local Technology Convergence – The majority of today’s EPIRBs use 406MHz and 121.5MHz frequencies via satellite communication to provide location and positioning data to global search and rescue personnel who may be several hundred miles away. The additional AIS channels on the new McMurdo SmartFind G8 AIS and Kannad SafePro AIS EPIRBs will send position signal information to standard AIS electronic equipment on nearby vessels for complementary, local tracking and rescue capabilities. This global and local rescue capability will result in quicker signal detection and faster response times.
Expanded Satellite Connectivity – McMurdo SmartFind and Kannad SafePro EPIRBs have a multiple GNSS satellite constellation receiver supporting Galileo (once the Galileo constellation is fully operational), GPS and GLONASS – from a single beacon. Advanced GNSS data processing results in faster detection of positioning coordinates and enhances the accuracy of the emergency location.
Part of a Cohesive Ecosystem – The McMurdo SmartFind and Kannad SafePro EPIRBs are part of McMurdo’s comprehensive search and rescue ecosystem. As the world’s only provider of an end-to-end search and rescue ecosystem – including distress beacons, satellite ground stations, mission control and rescue coordination systems and rescue response products – McMurdo uniquely builds, integrates and tests products as part of a live search and rescue system. This ensures greater cohesion between distress signal transmission and reception so that beacon owners can feel confident that their signals will get to search and rescue authorities quickly.
MEOSAR Compatibility – The McMurdo SmartFind and Kannad SafePro EPIRBs are designed to be fully compatible with MEOSAR, the next generation of the Cospas-Sarsat international search and rescue satellite system that has helped to save over 40,000 lives since 1982. MEOSAR will increase the speed and accuracy of beacon signal detection and location with new MEOSAR ground network infrastructure and additional MEOSAR satellites. When fully deployed, a MEOSAR-compatible beacon can be located with an accuracy of location within 100 meters (328 feet), 95 percent of the time – and within five minutes of distress signal activation, all without reliance on GNSS. McMurdo currently manufactures approximately 50 percent of the world’s MEOSAR infrastructure and is also leading the design of additional MEOSAR-capable beacons under the European Union’s Horizon 2020 Research and Innovation Program’s HELIOS project.
“McMurdo’s new EPIRB announcement is a major step towards achieving a unified search and rescue vision,” said Bruce Reid, CEO of the International Maritime Rescue Federation. “The convergence of products and systems whether AIS and 406MHz or maritime domain awareness and search and rescue, respectively, will require a comprehensive understanding of the entire search and rescue ecosystem. I look forward to seeing more McMurdo solutions and innovations that will shape the search and rescue industry for years to come,” he added.
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