DNV GL has secured a contract to provide in-service verification and classification services to a range of facilities at the Ichthys LNG project in Australia.

The contract marks INPEX’s commitment to continue working with DNV GL as it prepares to transition from the project execution phase to the operational phase of the mega project. DNV GL has provided vendor inspection, verification and offshore classification support to the USD 34 billion venture since 2012.

This latest contract will see DNV GL continue its expert support to the project as it transitions into operation in 2017. The primary scope of work includes in-service verification of the Ichthys facilities; the central processing facility (CPF), floating, production, storage and offloading (FPSO), subsea production system, gas export pipeline, onshore combined cycle power plant and onshore LNG plant. DNV GL will also provide in-service classification of the CPF and the FPSO hulls.

Richard Palmer, (photo) Regional Manager for Australia, New Zealand and Papa New Guinea, DNV GL, Oil & Gas said: “The transfer of the Ichthys LNG project to operation will mark a significant moment in Australia’s oil and gas industry. We have learned a great deal from supporting Ichthys and a range of mega project operators in Australia as the country moves closer to becoming the world’s largest LNG producer. We look forward to applying our experience in Australia and gas projects in other countries to support the safe and efficient operations from the project’s first day in service.”

Located 220 kilometers offshore Western Australia, the Ichthys field is situated on block WA-285-P in the Browse Basin, Timor Sea. This gas and condensate field lies at a water depth of 250m, and represents the largest discovery of hydrocarbon liquids in Australia in 40 years. The Ichthys LNG project is ranked among the most significant oil and gas projects in the world. It involves some of the largest offshore facilities in the industry, a state-of-the-art onshore processing facility and an 889 km pipeline that will unite them for an operational life of at least 40 years.

First production is scheduled for 2017 and the project is expected to produce 8.9 million tons of LNG and 1.6 million tons of LPG per annum, along with more than 100,000 barrels of condensate per day at peak. Gas and condensate from the Ichthys field will be exported to onshore facilities for processing near Darwin via the 889 km pipeline. Most condensate will be directly shipped to global markets from an FPSO facility permanently moored near the Ichthys field in the Browse Basin.

Claxton, an Acteon company, has improved the technological advantage of its Suspended Well Abandonment Tool (SWATTM) by developing an extension module. In turn, this enables Claxton and Acteon sister company, Offshore Installation Services Ltd (OIS), to set deeper environmental and intermediate barriers.

Neil Watson, SWAT product leader, Claxton, said, “SWAT holds the Queen’s Award for Innovation in the UK, and the Petroleum Institute Platinum Award for Innovation. It is the first tool of its type, and is provided by Claxton in co-operation with OIS. In combining our proven SWAT tool with the new extension module, we have significantly increased the range of wells that can be abandoned using SWAT. By providing our customers with more opportunities to opt for this rigless method, we enable them to reduce their well abandonment costs considerably.”

The existing multi-award winning SWAT tool is deployed from a vessel of opportunity through the moonpool, eliminating the need for a drilling rig. It is positioned on the wellhead and then used to perform casing perforation, recovery of drilling mud and placement of the required cement barriers in the well.

SWAT utilises the extension module to enable cement to be positioned even deeper within the well. A wiper plug is positioned before and after the cement column, which ensures that the wellbore is cleaned ahead of the cement. The lower plug forms a base for the column and slurry is uncontaminated when it enters the annulus. The cement is then displaced to the required depth in the well. In OIS’s most recent well abandonment campaign, the depth was 2400 feet below mudline. This added depth capability significantly enhances well decommissioning capacity; previously, the SWAT tool was limited to environmental barriers up to 600 feet below mudline, which limited the wells eligible for abandonment with SWAT.

OIS successfully completed its 18th multi-operator plug and abandonment (P&A) campaign for Centrica Energy and Antrim Energy in the central North Sea, using Claxton’s new SWAT extension module. Ten subsea wells in categories 1, 2.1 and 2.2 were abandoned with the rigless method.

Valerio Percoco, vice-president business development, OIS, said, “This project is the largest well decommissioning campaign completed by OIS since Acteon sister company, Claxton, introduced SWAT in 1996. The successful completion of this project, with zero environmental or lost-time incidents, reinforces our position as a global leader in the vessel-based P&A market, having safely abandoned 128 wells over the past 19 years. Furthermore, this multi-operator approach enables operators to share project costs, which, when combined with the rigless approach, provides a cost-effective method for decommissioning non-revenue generating assets. Project costs are divided equally between operators on the basis of number of wells brought to the campaign, and lump sum costs such as mobilisation and demobilisation are shared.”

OIS conducted offshore operations from an anchor-handling tug supply vessel (AHTS) the Island Valiant. In phase one, Claxton’s SWAT system was deployed through the vessel’s moonpool to perforate, circulate and set cement barriers in the bore and across all the casing annuli. An AHTS is more cost-effective and fit for purpose than a construction vessel or rig; able to move quickly and easily between work site locations and conducting operations using dynamic positioning, which saves significant amounts of time compared to using a semi-submersible or jack-up/drilling rig. Intervention operational times are also reduced with a vessel, which are typically between 36 – 60 hours.

Aqueos Corporation, a premier subsea service provider for the offshore oil and gas sectors of the Gulf of Mexico and the Pacific West Coast, receives a prestigious safety award from a major Offshore Oil & Gas operator.

This distinguished award was presented to Aqueos President and CEO, Ted Roche, during a recent Safety forum and recognizes Aqueos Corporation for “Safety Excellence” for working over 505,592 hours without a recordable injury. “This is evidence of the hard work and commitment of our offshore personnel, a supportive and talented project management and administrative staff, and steadfast senior management all working as a focused team,” comments Ted Roche.

Roche further commented, “We attribute a large part of our success to continuous improvement, communication, and remaining focused on our core value of safety. Even in these difficult market conditions, the team at Aqueos looks forward to continued managed growth without sacrificing our core values.”

Aqueos Corporation, with offices in Broussard, LA and Ventura, CA, provides marine construction and specialty subsea services, including a complete range of commercial diving, remotely operated vehicles (ROV’s) and vessel-related services primarily to the offshore oil and gas markets.

Registration totals exceeded expectations as 13,500 global exploration and production professionals gathered at the Society of Petroleum Engineers (SPE) flagship event the Annual Technical Conference and Exhibition (ATCE) at the George R. Brown Convention Center in Houston over three days last week 28-30 September.

“2040: The Journey and the Destination—Diverse Perspectives” was the Opening General Session theme on Monday. ATCE 2015 General Chairperson, Gustavo Hernández-García, director of operations for PEMEX E&P, introduced a distinguished panel of industry experts who discussed current trends and the recent challenges faced by the oil and gas industry. However, discussion stressed the resilience of the industry, the continued importance of fossil fuel energy to the world economy, and reassurance the industry will come through a difficult period and be stronger. Panel member Scott Tinker, director of the Bureau of Economic Geology said the energy mix has changed little in the past 35 years. “It’s driven by security. Is energy affordable, available, reliable, and sustainable? A lower price over a long time extends the future of oil.” He adds, “I continue to believe that energy is the greatest industry on the planet. It underpins everything.”

2015 President Helge Hove Haldorsen focused his comments on “the new normal.” At the Opening General Session he said, “We need to continuously adapt, strengthen, and reinvent our industry because oil and gas will be needed for decades to come.” On Wednesday he wrapped up his presidential term saying, “We will see what the new normal will be.”

Nathan Meehan began his term as SPE 2016 president with his vision stating, “We are on a mission to educate and provide safe, affordable energy to improve people’s lives.” Meehan said his priorities for the year ahead will focus on stressing public benefit; mentoring the next generation; sustainability; as well as health, safety, and environmental issues.

The more than 400 technical presentations provided break-through and improved efficiencies for best practices for the oil and gas industry. The 500 exhibits offered promising new and enhanced products and services. Networking opportunities were expanded due to the Open Access Day on Wednesday where more than 400 people took advantage of the complimentary registration. The conference featured more than 45 technical sessions, 34 training sessions, and young professional and student events and activities.

Some new features of the conference included the ENGenious program, which resulted in standing room only presentations from innovative technology companies. Another new feature was the opportunity to access live-stream and virtual sessions for those who could not attend the conference.

Participating in ATCE were engineers, operators, scientists, managers, and executives involved in all aspects of the global petroleum industry. ATCE offered unique opportunities for people at all career levels - including young professionals and students - to meet industry experts, network with peers, and access new technologies.

ATCE 2016 will be held in Dubai 26-28 September at the Dubai World Trade Centre.

Key findings from this year’s Oil and Gas UK activity survey state that the annual average expected spend on decommissioning on the UK Continental Shelf (UKCS) over the second half of the decade has increased to £1.8billion from £1.5billion. With the low oil price, rising costs and ageing infrastructure, the huge task of removing redundant installations from the North Sea is gathering momentum.

With the pace of decommissioning activity accelerating, Mark Walker, Client Partner at Optimus Seventh Generation, a behavioral change consultancy, discusses the vital need for leadership to help ensure projects are as safe as possible.

With over 600 offshore oil and gas installations in the North Sea, of various sizes, and more than 10,000km of pipelines, wells and accumulations of drill cuttings, the biggest concern is how the infrastructure can be removed in a safe and cost effective manner.

In high hazard industries, and specifically the energy sector, we talk about safety culture and understand the importance of it but do not always understand how we can assess it and, therefore, how we can improve it.

Optimus Seventh Generation has developed an approach to safety culture assessment, drawing upon High Reliability Organisation (HRO) principles, seeking a diagnostic as a means of providing the assurance that things are as they should be. They ask the diagnostic to identify the most significant safety issues confronting the organization or site, gathering evidence of safety culture by a combination of observation and audit of work products and perception-based surveys and interviews.

The diagnostic seeks to establish the aspects of resilience that are present, i.e:

• The ability of the business to stop something bad from happening
• The ability to stop something bad becoming worse
• The ability to recover something bad once it has happened

Resilience is assured not just by the behaviors of people but also by the consistent application of processes and procedures as well as the functionality of safety critical equipment.

The diagnostic is also looking for what barriers there are and how many are in place, with the use of personal protective equipment (PPE) at one end of the scale as the weakest defence and the elimination of hazards at the other end of the scale as the strongest. Between these we would hope to see others that give the business the ability to detect hazards by fixed detection systems, hazard spotting and management processes, adequate planning and active monitoring.

The glue that would hold all of the above together is the leadership.

Many operators are seeking less expensive alternatives to deliver decommissioning work, but want to ensure that safety remains a priority. However there are needs to be the acknowledgement that there may be gaps in their safety culture that should be addressed to deliver successful, safe projects. Optimus Seventh Generation imparts the skills and capabilities to deliver incident-free projects by motivating the workforce to follow the rules and to intervene, while educating leaders so they understand the influence they have over their teams.

When we deploy our leadership and workplace safety coaches in the field, our clients and their workforce often ask; what does an authentic leader look like? How will we know them when we see them? Our coaches encourage our clients to turn that statement around and ask; what do followers want? One of the principal roles of a leader is to create an engaged workforce or, more simply expressed, to create followers. Without an engaged workforce, there is no relationship and no leadership.

At Optimus Seventh Generation, we have recognized that this poses challenges for our industry - to incorporate authenticity as an assessment criterion for our current and future leaders during selection and to re-design our leadership training to establish authenticity as an outcome of such programs.

Working with safety leaders in individual companies or in our open course – Leading Safety Performance ™ – we have witnessed many “light bulb moments” when leaders have realised what skills they require to be authentic and have left with a strong desire to be that authentic person and to lead based on their values.

It is clear that those organisations whose culture is underpinned by strong values will create a workforce willing to engage with new safety processes and will therefore be best equipped to protect both their people and their assets. If these values have been socialised within the business and are used by leaders at all levels in an authentic manner then the safety culture in our industry will create the resilience it needs.

Case Study

In May 2015, Optimus Seventh Generation was awarded its first decommissioning contract with a major North Sea operator to supply induction training, through its program Induction Plus™ and back to back health and safety advisors to support the safe decommissioning of a floating production, storage and offloading vessel in the North Sea.

When embedded by the presence of Optimus safety advisers, Induction Plus™ helps influence the decision-making of all involved, ensuring rules are being followed and incident-free projects are being delivered.

The four-hour induction is aimed at projects experiencing a large influx of new, often subcontracted, labour during decommissioning and construction projects or shutdowns. It educates the attendees on the company’s expectations with respect to compliance with the company’s safety rules, alongside a motivational element to engage the project team with ‘why’ compliance is important and how they can raise their awareness of the hazards specific to the asset.

Optimus worked with leaders to educate them with the understanding that their decision making is key in the project’s success, increasing workforce engagement, which helps ensure that the work force remained focused and motivated creating a safe environment.

The work scope is based in the North Sea, where fields continue to provide opportunity in the current climate with collaboration being key between operators, the supply chain and, more pertinent than ever right now, specialist safety professionals.

This is an exciting project for the team, and the North Sea operator will be able to take advantage of Optimus Seventh Generations’ 12 years’ of providing specialists safety support services to the energy sector to decommission the floating production, storage and offloading vessel, in a safe and environmentally responsible way.

Asset Guardian Solutions Ltd (AGSL), which specializes in protecting companies’ process critical software assets, announced that it has successfully completed a series of three projects for a major North Sea oil and gas operator that manages and operates numerous developments in the North Sea, Norway, Algeria and Russia.

During the past two years, AGSL has completed three linked contracts, two of which required that the Asset Guardian toolset be customized to meet the customer’s specific requirements.

The initial contract awarded to AGSL provided the operator with a secure electronic, centralized repository to store all process control systems software back-up files. As a result, the company’s ability to recover quickly in the event of an unplanned production shutdown due to process control software failure has been significantly improved. In addition, the Asset Guardian toolset included software version control and the ability to manage all software configuration changes.

To ensure that all of its personnel, whether working onshore or offshore, have access to the same information, AGSL also supplied its AGSync software module. By using a master/slave server topology, AGSync synchronizes data and files between multiple locations, while simultaneously safeguarding the integrity of files and data. This is particularly important should communication links between locations be disrupted.

The successful deployment of the Asset Guardian toolset to manage the operator’s process control systems software encouraged the company to use Asset Guardian to provide a corporate, multidisciplinary management of change system (MOC) solution. Following successful completion of the work scope by AGSL, the solution has been implemented and released across all company assets.

By using the same Asset Guardian core software and some of the functionality of the two previous projects, AGSL developed a subsea asset management solution that makes it possible for the customer to use and share common data across different business units and disciplines. This integrated approach has benefited the company by providing improved reporting, workflow data management, and enhanced efficiencies, resulting in a capex cost reduction.

The oil and gas industry is by nature one of the most challenging environments in the world, so a high level of business integrity is critical to safely keep operations up and running. As a result of its commitment to continuous improvement in the industry, Trelleborg’s offshore operation in England has been awarded an International Organization for Standardization (ISO) / Technical Specification (TS) 29001:2011 certification.

The standard defines the quality management system requirements for the design, development, production, installation and service of products for the petroleum, petrochemical and natural gas industries.

Ray Cann, Operations Director for Trelleborg’s offshore operation, says: Meeting the criteria involved creating and implementing detailed procedures and auditing, as well as facilitating various cross functional meetings with individual departments over eight months. In addition we had to complete three British Standards Institute audits - a pre-assessment and stage one and two audits.

Though it was challenging in parts, we were committed to ensuring that all tasks were completed as thoroughly and effectively as possible and the hard work paid off. We believe that this accreditation will provide our customers with added peace of mind and the assurance of consistently high quality products and services.”

Developed as a result of a partnership between ISO and the international oil and gas industry (led by the American Petroleum Institute - API), ISO 29001 specifically focuses on the oil and gas supply chain. It aims to emphasize the prevention of defects and reduce variation and waste from service providers.

Meeting the requirements laid out by ISO/TS 29001:2011 ensures standardization and consistency across the sector and improved assurance in the supply of quality goods and services from providers. This is particularly important when the failure of goods or services have severe ramifications for the companies and industries involved.

To find out more about these products and services, please visit the website here.

ABS, the leading provider of classification services to the global offshore industry, has granted Mitsui Engineering & Shipbuilding Co. Ltd. (MES) approval in principle (AIP) for a floating production, storage and offloading (FPSO) vessel design and an epoch-making construction concept.

This work is the result of an ABS/MES joint development project that began in March 2015. The "noah-flex modular design" for the FPSO and the flexible construction procedure, "noah-flex modular construction," were granted AIP on 15 September.

"ABS is working with industry to develop and employ new technologies," says ABS Chairman, President and CEO Christopher J. Wiernicki. "To effectively support Class of the Future, ABS has to provide the services the industry needs to make adjustments as operating conditions and markets change. Granting AIP to new technologies is an essential element of that future."

"ABS is one of the world's leading classification societies with excellent technology and a wealth of know-how in the offshore industry," says MES General Manager Dr. Taketsune Matsumura. "MES recognizes that ABS is our dependable partner and plays an indispensable role in developing and realizing such an epoch-making concept as our "noah-FPSO Hull."

The noah-flex modular construction processes consists of multiple steps that take place in parallel to shorten the construction time efficiently, with keel laying marking the commencement of construction. The first step of the project is FPSO design and hull construction, including propulsion and relevant machinery equipment/systems, which will be carried out by MES, Japan while construction of the oil storage component takes place at another yard, outside Japan for example. Following this process, the topside facilities will be subsequently/simultaneously fabricated in the different/the same shipyard and installed on the elongated hull, after which the completed FPSO will move to the specified operation site for hookup and commissioning.

The FPSO design will be reviewed for compliance with the ABS Rules and applicable International/National Regulations to make sure the unit is in full compliance, particularly when executing transits from one shipyard to another during construction.

"ABS recognizes that working with industry to advance technology is critical," says ABS Special Advisor Ken Tamura. "Engaging in this project with Mitsui provided ABS the opportunity to help shape the future of vessel construction."

Statoil with partners Petoro and OMV have started the world´s first wet gas compression on the seabed of the North Sea Gullfaks field.

The unique technology will increase recovery by 22 million barrels of oil equivalent (oe) and extend plateau production by around two years from the Gullfaks South Brent reservoir.

“We are very proud that we have been able to complete such a demanding pioneering project with start-up ahead of the original plan,” says Margareth Øvrum, executive vice president for Technology, Projects & Drilling (TPD).

“Subsea processing and gas compression represent the next generation oil and gas recovery, taking us a big step forward,” she says.

Statoil is the first company to apply subsea gas compression. In mid-September Statoil also started Åsgard subsea gas compression.

The two projects are the first of their kind worldwide, and represent two different technologies for maintaining production when the reservoir pressure drops after a certain time.

Subsea compression has stronger impact than conventional platform-based compression. It is furthermore an advantage that the platform avoids increased weight and the extra space needed on the platform for a compression module.

Subsea compression is an important technological leap to further develop the concept of a subsea factory.

It is also possible to tie in other subsea wells to the wet gas compressor via existing pipelines. The station has already been prepared for new tie-ins.

“We see great opportunities for wet gas compression on the Norwegian continental shelf. It is an efficient system and a concept that can be used for improved recovery on small and medium-sized fields. We are searching for more candidates that are suitable,” says Hove.

“The Gullfaks wet gas compressor is a unique, compact and cost-effective solution. The concept may be standardized by applying well-known technology components,” says Øvrum.

Extensive preparations had been made on Gullfaks C before the subsea compressor could be started, including modifications and preparation of areas as well as installation of equipment.

Gullfaks licensees: Statoil (operator) (51%), Petoro (30%), OMV (19%)

On behalf of the Johan Sverdrup license, Statoil is awarding contracts for two Johan Sverdrup jackets to Kvaerner Verdal and Dragados Offshore S.A.

The contract awarded to Kvaerner Verdal has a value of approximately NOK 1 billion and covers engineering, fabrication and construction of the steel jacket for the Johan Sverdrup processing platform. Weighing 17,700 tons, the jacket will be constructed at the yard in Verdal and installed on the Johan Sverdrup field in the summer of 2018.

“This is the third delivery based on the letter of intent signed by Statoil and Kvaerner for delivery of jackets. This means that Kvaerner will deliver 3 of 4 jackets for the first phase of the Johan Sverdrup development,” says Kjetel Digre, senior vice president for the Johan Sverdrup development project.

“Having documented learning and synergies in connection with existing contracts, Kvaerner has become the supplier of these three jackets and will contribute to improved competitiveness and maximized value creation from Johan Sverdrup,” says Digre.

The contract awarded to Dragados Offshore S.A. covers engineering, fabrication and construction of the steel jacket for the Johan Sverdrup utility and accommodation platform. Weighing 7,600 tons, the jacket will be constructed at the yard in Cadiz. Field installation is scheduled for the summer of 2018.

“We are pleased to include Dragados Offshore in the Johan Sverdrup project, which is a complex puzzle requiring precision and quality in all deliveries. We have good experience with Dragados Offshore from construction of the jacket for the Statoil-operated Mariner project. We are looking forward to resuming our good cooperation, and from day one we will focus on utilizing our experience and ensuring the same quality in this Johan Sverdrup assignment,” says Digre.

The investment costs in the first phase of the Johan Sverdrup development are estimated to be in the order of NOK 117 billion (2015 value) with expected recoverable resources in the range of 1.4 – 2.4 billion barrels of oil equivalent. The ambition is a recovery rate of 70% for Johan Sverdrup. The first phase of the Johan Sverdrup field development will consist of four installations, including a utility and accommodation platform, a processing platform, a drilling platform and a riser platform, as well as three subsea water injection templates. The platforms will be bridge-linked.

The Johan Sverdrup field partners: Statoil 40.0267% (operator), Lundin Norway 22.6%, Petoro 17.36%, Det norske oljeselskap 11.5733% and Maersk Oil 8.44%.

Shell Nigeria Exploration and Production Company Ltd (SNEPCo) has announced the start-up of production from the Bonga Phase 3 project.

Andrew Brown, Shell’s Upstream International Director, said: “This new start up is another important milestone for Bonga, adding valuable new production to this major facility.”
 
Bonga Phase 3 is an expansion of the Bonga Main development, with peak production expected to be some 50,000 barrels of oil equivalent. This will be transported through existing pipelines to the Bonga floating production storage and offloading (FPSO) facility, which has the capacity to produce more than 200,000 barrels of oil and 150 million standard cubic feet of gas a day.



The Bonga field, which began producing oil and gas in 2005, was Nigeria’s first deep-water development in depths of more than 1,000 meters. Bonga has produced over 600 million barrels of oil to date.

The Bonga project is operated by SNEPCo as contractor under a production sharing contract with the Nigerian National Petroleum Company, which holds the lease for OML 118, in which the Bonga field is located. SNEPCo holds a 55% contractor interest in OML 118. The other co-venturers are Esso Exploration & Production Nigeria Ltd (20%), Total E&P Nigeria Ltd (12.5%) and Nigerian Agip Exploration Ltd (12.5%).

The Bonga North West development began producing vital energy resources in August 2014. The field is located around 120 km off the coast of Nigeria in the Gulf of Guinea at a depth off more than 1,000 meters (3,300 feet). All six wells (four oil producing and two water injection wells) are now completed and on stream, contributing more than 40,000 barrels of oil equivalent at peak annual production. This is transported by a new undersea pipeline to the upgraded Bonga floating production, storage and offloading facility.

Deep Down, Inc. (OTCQX: DPDW) ("Deep Down"), an oilfield services company specializing in complex deepwater and ultra-deepwater oil production distribution system support services announced it has received the largest order in the company's history valued at $13 million directly from a super-major operator.

This order includes one phase of new systems and equipment to be delivered in 2016 for installation in the Gulf of Mexico. The project is structured to ensure a continuous cash-positive position for the company.

Ron Smith, Chief Executive Officer of Deep Down, Inc. stated, "Receiving an order of this magnitude, during the current industry downturn, is a major vote of confidence in our ability to continue providing innovative solutions for our customers. We are humbled by the trust placed in us and are well prepared for the work ahead."

McDermott International, Inc. (NYSE:MDR) announces it has been awarded a sizeable brownfield project by Qatar Petroleum for the engineering, procurement, construction and installation (EPCI) of four wellhead jackets.

McDermott has been awarded a sizeable brownfield offshore project by Qatar Petroleum for the engineering, procurement, construction and installation (EPCI) of four wellhead jackets, similar to this file photograph. (Photo: Business Wire)

Installation of two jackets in the Bul-Hanine field offshore east of Doha has been scheduled to be completed by December 2016 with the remaining two scheduled for completion in July 2017. The total weight of all four structures combined is 3,495 tons.

“McDermott’s integrated EPCI capabilities are critical to these offshore projects,” said Tom Mackie, McDermott’s Vice President, Middle East. “This award is another example of collaboration with our customers to meet their critical production and project requirements. The award is expected to be executed with McDermott’s internal resources and backed by our proven track record of designing, building and installing offshore and subsea solutions.”

Revenue for the order will be included in McDermott’s third quarter 2015 backlog.

McDermott has been delivering projects in Qatar for more than 40 years. Detailed design engineering and procurement is expected to be performed by McDermott’s teams in Dubai, U.A.E. Jackets are scheduled for fabrication by McDermott’s Dubai, U.A.E.-based fabrication facility. Vessels from the McDermott global fleet are scheduled to undertake the installation work.

Deloitte’s survey of oil and gas operators and oilfield services companies* has found that a lack of effective supply chain collaboration means companies are missing out on maximizing the potential value from the UK Continental Shelf (UKCS).

74% of respondents said collaboration was an integral part of their day-to-day business but only 27% reported that the majority of their efforts resulted in a successful outcome. Cost reduction was found to be the main driver for collaboration today, with nearly a third (31%) of company respondents in agreement. 90% said that supply chain collaboration would also play a greater role in their company’s success.

Nick Clark, a director in Deloitte’s consulting team and contributor to the research, said: “While it’s encouraging that collaboration is seen by the industry as an important tool in helping companies succeed in maximizing economic recovery of the UKCS in line with the Wood Report, there’s clearly work to be done, and fast given the current tough environment.

“The industry needs to address a number of practical, cultural and behavioral barriers that are standing in the way of realizing this successful future. These include fundamentals such as a lack of effective financial incentives, a lack of clear communication and misalignment of expectations between operators and service companies in execution.”

The most critical finding highlighted the discrepancy between what drives successful collaboration, and the actions of leadership and business processes to underpin it. Whilst there was clear recognition of the value of collaboration and what’s needed to make it happen, trust and mutual benefits for example, less than 10% said that leadership regularly emphasized its importance or included it in their business strategy.

Despite this 20% of respondents still said they actively sought out opportunities to collaborate, which shows that the potential is there if the right leadership and incentives are in place.

Deloitte suggests that whilst industry must take the lead to make collaboration effective in the UKCS, it should look to the regulator, the Oil and Gas Authority (OGA), and Oil and Gas UK (OGUK), the industry trade body for support, pointing out that initiatives like OGUK’s Efficiency Task Force can be a real driver for positive change.

Oil & Gas UK’s business development director, Stephen Marcos Jones, commented: “In a world of a fallen oil price and high costs, industry is facing a difficult time. Whilst there are some signs of recovery - through an upturn in production and concerted focus on improving efficiency - there's also growing consensus that much more needs to be done. Deloitte’s report is a welcome contribution to this important debate, it is valuable to have a means to measure industry’s progress in terms of collaboration – which is no easy task.

“Collaboration is crucial if we're to fulfil Sir Ian Wood's vision to maximize economic recovery from the UK Continental Shelf.

“I believe industry is now starting to readjust its way of working together. It is vital we work together proactively - not just between operators, but crucially between operating companies and the wider supply chain - to deliver the transformational change we need to see.

“That is why Oil & Gas UK has put in place an Efficiency Task Force - championed by leaders from across the industry - we hope this group will challenge existing behaviors and be a catalyst for pan-industry improvement, in addition to the extensive work being undertaken by companies individually.”

Clark continues; “Thirty years ago health and safety was the major focus for the North Sea, and the industry made that a central tenet of its culture – for collaboration to succeed it has to be addressed with the same urgency and senior leadership.

“Our research shows that the industry recognizes this, and the critical value that effective supply chain collaboration can deliver in securing the future of the UKCS. We need to act fast and I believe that every company involved in the North Sea will want to play its part in making it a safe, collaborative, efficient and profitable region for many years to come.”

About the Deloitte oil and gas collaboration survey

This is the first Deloitte oil and gas collaboration survey in the UK and took place between 1st July and 31st July 2015.

The survey was supported by industry body Oil and Gas UK.

*61 people participated from a wide range of operators and oilfield services companies

For more information please visit: www.deloitte.co.uk/UKCS-collaboration or www.deloitte.co.uk/UKCScollaboration

On 2 October 2015, Statoil acquired First Oil’s 24% equity share in the UK license for the Alfa Sentral field for USD 15 million.

Alfa Sentral is a c.60 mmboe gas and condensate field planned to be developed as a tie-back to the existing infrastructure for Sleipner on the Norwegian Continental Shelf (NCS), which Statoil operates. Alfa Sentral will therefore increase the utilization of the Sleipner facilities.

“Statoil has set ambitious goals for future activity, production and value creation. This transaction demonstrates the potential on both the UK and Norwegian side of the Continental Shelf. The acquisition of this Alfa Sentral license increases the resource base and strengthens our efforts to further develop the Sleipner area towards 2030", says Mette Halvorsen Ottøy, senior vice president for the operations south cluster in Development & Production Norway (DPN).

Through this transaction Statoil has taken a 24% interest in UK Continental Shelf (UKCS) license P312 which, with license PL046 on the NCS, comprises the Alfa Sentral field. Statoil is the operator in PL046 with a 62% holding.

As a result, Statoil has increased its equity holding in a high priority project in a core area, deepening its presence on both the NCS and UKCS. The transaction is expected to close by the end of 2015.

Concept selection for the Alfa Sentral project was passed in September 2015. Negotiations to unities the field will commence shortly. A final investment decision is planned for late 2016 with production start-up in 2020.

Aker Solutions has been awarded a contract from Murphy Sabah Oil Co., Ltd. (Murphy) to deliver the subsea production system for the Rotan deepwater natural gas development offshore Malaysia.

The delivery includes hardware for four subsea wells, a hub manifold, in-line tees, a connection system and production control system. First deliveries are scheduled for the second quarter of 2016. The contract will be booked as part of the company's third-quarter order intake.

"We're very pleased to team up with Murphy on this important development," said Ravi Kashyap, country manager for Aker Solutions in Malaysia. "We look forward to continuing the good cooperation we've built over several years having worked with Murphy on other projects in this strategically important region."

Aker Solutions has worked with Murphy on the Kikeh oil and gas project, the first deepwater development in Malaysia, and the Siakap North-Petai oil and gas development, a tieback to Kikeh. Both fields are in Block K offshore East Malaysia at the easternmost state, on the island of Borneo.