With the continuous search for new gas supplies, companies like Gazflot often find themselves in harsh geographical conditions trying to unlock the next reserve of natural gas. Such explorations require robust and reliable equipment to work under some of the most difficult conditions imaginable. As such, there is a need for genuine partnerships with companies that understand what it takes and are well-positioned to deliver technologies that support more efficient exploration activities.

GE’s Marine Solutions (NYSE: GE) was recently awarded a service contract by CIMC Raffles to provide the first dry-dock services on two of Gazflot’s semi sub drilling vessels—Northern Lights and Polar Star. During the dry-docking, GE’s Marine Solutions will thoroughly test its scope of supply and will replace and upgrade parts where necessary.

Semi subsea drilling vessel Polar Star: Photo courtesy: Gazflot

With years of experience in carrying out similar activities, historical data from these vessels and an understanding of how systems interact with each other, GE’s Marine Solutions is ideally placed as a one-stop solution to carry out the dry-docking of these vessels. This dry-docking will enable Gazflot to continue operating its vessels at optimum levels.

“GE will not only carry out the required maintenance activities on the two vessels, but will also be assisting with the supervision of the activities throughout dry-docking. We are impressed by GE’s technical and operational finesse and look forward to working with them in the long-term,” said Mr. Yongqiang Shao, deputy general manager, CIMC Raffles.

Commenting on the contract, Andrey Nikireev, deputy head of power supply department, Gazflot, said, “We have been very happy with GE, and its technology is running flawlessly on board our vessels. GE’s deep understanding of these technologies makes them an ideal partner for this dry-docking, and with GE’s engineers carrying out the maintenance activities, we are confident that our vessels are in a safe pair of hands.”

The two vessels were equipped with GE technologies including dynamic positioning, automation, drilling drives, MV 7000 propulsion drives, Power Management System, Vessel Management System and Thruster Assisted Mooring System. These technologies have been reliably at work on Gazflot’s ice class vessels, which are capable of drilling up to 10,000 feet in the adverse conditions in Northern Russia. Through the current contract, GE’s team of on-site engineers will ensure the longevity of installed systems while working with the yard to supervise the dry-docking activities.

“We have had a long-standing relationship with Gazflot and are happy to further our partnership through this deal. With our reliable technologies on board their vessels, GE is at the heart of Gazflot’s exploration activities. Our thorough maintenance services and assurance of providing technical support for these vessels will ensure uninterrupted operations for Gazflot in the years to come,” said Tim Schweikert, president & CEO, GE’s Marine Solutions.

After the dry-docking, GE will continue to provide remote technical support for the Northern Lights and Polar Star semi sub drilling vessels.

U.S. Commercial Stocks Build for First Time in Several Weeks

Total commercial inventories built for the first time since the end of April. The gain of 3.2 million barrels reflected a substantial 6.4 million-barrel build in overall product stocks, only partially offset by a 3.2 million crude inventory decline.

Recipe for Rebalancing? Just Add Weather

Last year, the U.S. market recorded an extended string of triple-digit injections during this period, with weekly builds averaging 109 BCF. This year, however, the record inventory overhang left little room for such outsized shoulder-season restocking. Yet, prior to Thursday’s inventory report, it appeared that the needed rebalancing might not occur fast enough to curtail the seasonal stock build. As if on cue, the timely arrival of summer heat has improved the odds for rebalancing, with the subsequent boost in electric generation (EG) gas burn more persuasively offsetting surplus supply.

Financial Stress Lower

Most key indexes rose on a weekly average basis, including the S&P 500 (although slightly lower Friday-to-Friday), U.S. High-Yield Corporate Bond, Russell 2000, Emerging Market Bond, and Commodities. The dollar fell in value against most countries, and most agricultural commodities and metals gained.

Northwest Europe Terminal Capacity Expands, But Where's the LNG?

After a year of delays, the Northwest European market is set to open more LNG import capacity; the question is whether or not this new capacity will be put to use in the form of expanded LNG imports to the region. PIRA believes that it will despite the current low levels of capacity utilization. To begin with, the supply side of the equation in the Atlantic Basin will improve, despite the heavy losses of the first quarter.

Recent Price Strength Has Not Scared Off Power Demand

With prompt gas prices rising around 25% so far this summer and LNG flows weakening, one might wonder if the great shift in gas-coal spreads from last year is reversing and eroding power demand. As power is sensitive to price, that would not be a ridiculous thought. However, this balancing function was not served by the power market; it has mostly been offered by storage facilities.

Weak Loads Stifling Otherwise Bullish Outlook

Power prices at most Eastern hubs fell in May as maintenance activity wound down. Lower wind generation bolstered western MISO and SPP Off-peak prices. Summer heat rates are expected to increase year-on-year in most markets due to lower gas prices, unit retirements, and warmer weather in the Midwest, though ERCOT summer on-peak prices seem to have priced in lot of upside risk at the current market levels. In PJM, significant participation by new gas generation build continued in the recent 2019-20 capacity auction while three of Exelon’s nuclear units failed to clear the auction. PIRA expects gas prices to advance further during 4Q, rising above the $3 mark during Dec. - March, reflecting sharp year-on-year gains.

U.S. Ethanol Prices Rose to the Highest Level Since Last Summer

The market tightened the week ending June 3, with inventories reaching a five-month low. Manufacturing markets remained healthy.

Spain: Prices Surge as Wind and Hydro Decline. Coal Set to Stay Weak

Discussions at PIRA's Client Seminar in London this past week centered on shifts taking place in the European power fuel mix, with switching from coal to gas now starting to emerge both as a result of structurally lower gas prices and changing policies. After the U.K., Spain is also featuring a fairly large drop of coal-fired dispatching so far this year. The policy framework is also very fluid in Spain, with the June 26 elections likely to be a negative for the coal-fired (and nuclear) outlook, especially as recent polls indicate that the left-wing parties and Podemos are gaining momentum and may be dictating the energy agenda of the upcoming government.

Coal Price Rally Runs Out of Steam

The extended rally coal prices had been on for the previous two weeks came to an end last week, with coal pricing moving lower while oil prices continued to move higher (until the notable pullback in the oil market on Friday). Prices in 3Q16 for all three major forward curves lost significant ground, while deferred prices were more mixed. As PIRA has been affirming since the beginning of 2015, the upside for short-term pricing lies squarely on the oil market, as fundamentals in the prompt are not expected to provide much support.

California Carbon Still Tied to Price Floor

Average WCI prices stayed below, but still tied to, the price floor in May, and the auction was severely undersubscribed. Unsold state-owned allowances will not be re-offered until two consecutive auctions clear above the floor. Unsold consigned allowances will be re-offered in August, in turn requiring higher bid volumes for that auction to clear. The final court decision on the auction will not come until 2017. A legislative fix could be a backstop measure to keep the auction in place, perhaps bolstered by the California Legislature facing reduced auction revenues in the budgeting process. The coming months will see a firming of signals for a tightening cap beyond 2020.

LPG Freight, Arbitrage Under Renewed Pressure

Delivered LPG price were stable in Asia last week. Propane for July delivery gained by just $2 to near $340/MT, while CFR cash butane was called at $20 premium to C3. Saudi propane CP futures added 1.2%, crimping the spread to the Far East to under $15. Despite spot VLGC freight on the benchmark rate from Ras Tanura to Chiba and Japan trading near five-year lows, current arbitrage spreads necessitate a further $10 freight decline for spot physical movements to work.

WASDE Supports, Weather Pushes

The convergence of speculative money and demand was once again on display Friday as witnessed by both the WASDE during the trading day and the Commitment of Traders after the close. Even though both corn and soybean supplies were below market consensus, the length in the markets mitigated much upside potential, although drier-than-expected weather forecasts in the 8-14 day timeframe issued this weekend have pushed corn and soybeans into overdrive again.

Japanese Crude Runs Little Changed; Crude Stocks Build

Crude runs changed fractionally on the week. Crude imports were also little changed and crude stocks built 2.9 MMBbls. Finished product stocks built marginally. Gasoline and kerosene stocks were up modestly, while gasoil drew moderately, but that offset by higher fuel oil, naphtha, and jet stocks. Demand were modestly mixed with the aggregate demand figure falling 80 MB/D. The four-week demand trend has turned higher. Refining margins had improved a bit, but gave back ground on the week.

Production Surged to a Near Record Level

Output jumped the week ending June 3, after plants returned to normal operation following spring maintenance. The manufacture of ethanol-blended gasoline fell after reaching a 10-week high the previous week.

U.S. SPR Sales Unlikely in 2016

Speculation has risen that the Obama administration could conduct SPR sales as early as October 2016, as permitted by two bills passed late last year. However, we believe sales in 4Q16 remain unlikely, judging from recent comments from the Energy Secretary and politics surrounding the November 2016 presidential election.

Global Equities Post Another Neutral Week

Global equities were again on balance, only modestly changed. In the U.S., the broad market was down marginally. The leading sectors were energy, utilities, and consumer staples, which posted good gains. Retail performed the poorest and declined about 2%. Internationally, most of the tracking indices declined, with Europe posting the biggest drop.

Petrobras to Get Full Domestic Pricing Control

Brazil's energy ministry has backed full independence for Petrobras to set domestic fuel prices, blaming past controls for saddling the state-controlled oil company with crippling debt that is the oil industry's largest. Petroleo Brasileiro SA, as the company is formally known, and other state-controlled companies, such as utility Eletrobras, with shares owned by non-government investors, should be free to act in their best interests without government interference, the ministry said in a statement.

Obama Administration in Race to Finalize Regulations

The clock is winding down on the Obama Presidency and the focus in on finalizing rules. Methane regulations for new oil and gas wells were finalized ahead of schedule; follow-through on rules for existing wells will fall to the next administration. This summer will see final one-hour SO2 designations affecting a number of coal units, particularly in Texas; the finalization of the aviation “endangerment finding” for GHG emissions; and final Heavy Duty Vehicle GHG Standards for model years beyond 2018. Renewable Fuel Standards for 2017 proposed in May were ambitious. A draft review of CAFE standards is also expected this summer. PIRA expects EPA to continue working on the Clean Power Plan model rule and FIP, although the stay will prevent formal finalization. The next PM NAAQS review and Secondary NAAQS for SO2/NOx will be punted to the next administration.

RIN Costs Higher

U.S. refiners paid at least $1.35 billion to acquire RINs in 2015. Most refiners had higher costs in the first quarter.

Implications of May Chinese Data on Economy and Oil Demand

In May, China’s industrial production matched expectations, while fixed asset investment disappointed. Housing indicators continued to show large improvements. Recent sequential increases in the producer price index are positive for corporate earnings and will also directionally reduce concerns about China’s debt burden. Meanwhile, physical activity indicators that can directly be related to oil demand (vehicle sales, ethylene production, and passenger air travel) recorded constructive gains.

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.

Doug Whyte, managing director at Aberdeen-headquartered subsea cable and connector specialist Hydro Group, discusses the importance of investing time and effort into educating global partners on your company’s offering, outlook and ethos, to ensure standards are maintained and successful results are achieved when moving into international regions.

Businesses are constantly looking to grow and diversify into new regions and areas, with a recent study, carried out by Coleman Parkes Research on behalf of the Bank of Scotland, reporting that a quarter of UK oil and gas companies have managed to actually grow during the downturn by diversifying into new areas and by adopting new technology, and two-thirds have made international expansion plans. An ethos and ambition that Hydro Group has followed for the past three decades.

However, to ensure successful results are achieved when crossing international borders, companies need to invest in educating global representatives.

Madhukar Kulkarni, India; Benoit d’Alancon, France; Tik Sun, China; Alex Phan, Vietnem; Mike Swann, USA; Marianne Eleanor A. Catanyag; Philippines; Marek Narewski, Poland; Graham Wilkie, Hydro Group; Eric Pham, Vietnam; Steve Ang, Hydro Group Asia Singapore, Doug Whyte Hydro Group

Collaborating with global business partners and having an on-the-ground presence in an overseas region can help a company gain that essential competitive edge, and significantly support with developing client relationships.

It is important that, when a company moves into foreign regions, it retains business consistency and compliance over international borders, with the people employed to head up and promote a new division being proficient in company messaging and best practices from existing offices.

Having an international agent can help to expand your global portfolio and reach, and employing a local showcases your genuine ethical investment in a region. However, you must ensure they are adept in your company’s offering, ethos and outlook, and are portraying your messages in an accurate and representative manner. A mutual understanding of business culture is also essential.

This requires you to invest time and effort in training and communicating with your agents, so the company delivers a consistent service and quality product globally. Failing to do this could be detrimental to the entire investment, and lead to your company to being portrayed in an inaccurate and potentially damaging way.

At Hydro Group plc we recognise the importance in investing in local agents who are in tune with the language and culture of the region, having formed our Singapore based division Hydro Group Asia in 2013 as part of international expansion plans, which now has a staff of five and an annual increase of sales in the region of over £1.5million.

We know the benefit of having on the ground support in global locations, and of the importance in investing in making sure our business partners are conveying our products and services accurately.

Following our recent announcement of multiple new business partner agreements across the Asia Pacific region, allowing us to increase efficiency and ensure regular interaction with our customers as we continue to grow in the area, we invited nine of our new and established global representatives over to our facilities for a business partners forum.

With an investment of £2million in a new 13,700 sq ft bespoke facility earlier this year, business partners from Taiwan, China, Philippines, Indonesia, Vietnam, France and America all visited our recently expanded headquarters to see and hear about the company’s activity, growth and future plans – information they were able to take back with them to share further.

Inviting agents and representatives to your office, manufacturing facilities or workshop to meet and feel part of the team, and see and understand first-hand the company’s offering and growth plans, can help inform and ensure the messages they convey when they return to their regions are on point. Resulting in the best business outcome all round.

Forums such as this can also lead to additional collaborations, with the agents having the opportunity to meet face-to-face to discuss potential business ventures – further benefiting the future of the industry.

Global expansion is key to ensure a company grows and evolves with the times and, as well as providing employment for locals, training up regionally based individuals and teams helps to develop staff equipped with your company’s skills and knowledge, resulting in company standards being retained.

ROVOP has been awarded £3million worth of new contracts, which sees the company expanding into two new territories.

For the first time the company will complete projects in South East Asia and Mexico, signaling success for both its Aberdeen and Houston bases.

The company has also announced the appointment of Neil Francis as Vice President of Business Development in Houston.

Neil brings over 20-years of ROV experience to the role, having held various commercial and operational positions, and will drive and lead ROVOP’s business growth in the US.

Chief Executive, Steven Gray, said: “The market remains challenging but our ability to save operating costs for our customers, while using the best equipment and personnel on the market, means we continue to enjoy regular contract wins.

“These awards further encourage the successful establishment of our Houston office last year and build on the completion of several workscopes in the US Gulf of Mexico and Central and South America over the past three years.

“ROVOP has reduced its pricing to ensure we are competitive and meet our client’s requirements in this challenging market. The challenge the industry faces should not be underestimated but we are working to reduce costs for customers by reducing vessel time and increase efficiency.”

Commercial director, Euan Tait, explained the addition of Mr. Francis to the ROVOP team will be key:

“Neil’s appointment will act as a catalyst for our future ambitions. He has exceptional experience and knowledge of the industry. His role as Vice President of Business Development will further improve our reputation of providing excellence to our customers and is an important part of our plans to step into new territories to further strengthen our position.”

Ecosse Subsea Systems (ESS) has agreed the sale of an 800-ton carousel to Bibby Offshore Limited (BOL).

With the referendum rapidly approaching, the question of what Brexit could mean for the UK oil & gas industry has become increasingly intriguing. As a market broadly regulated in London, many argue that an exit vote would lead to no significant changes – at least in the short term. However, new uncertainties for the energy industry may emerge, should the UK decide to part ways with Europe.

In 2013, the UK became a net importer of petroleum products. Traditionally the main sources of the UK imports are from EU countries including France and the Netherlands. An exit vote, along with increased economic instability could potentially lead to a sterling depreciation, resulting in higher import costs and increased uncertainty over future energy supply. This scenario could be a double edged sword – UK upstream businesses would see relatively lower operating costs compared to US competitors, yet, companies with revenues in sterling are likely to face higher repayments of dollar denominated debt.

Limited labor and capital mobility is another concern, which would arguably affect the UK’s ability to attract highly skilled oil and gas workers to the North Sea and potentially discourage foreign energy investment in the mid-to-long term. This risk would be exacerbated if a “Leave” vote were to trigger another Scottish Independence referendum. To ensure free movement of people and goods across borders, the UK could seek membership of the European Economic Area (similar to Norway) – a relatively favorable scenario when compared to the option of bilateral trade agreements (similar to Switzerland). Trade under these agreements is often subject to customs clearance processes, VAT and duties paid by the EU exporting country.

There will undoubtedly be a number of “Brexit” implications for UK oil & gas, however, the current low oil price environment is likely to play a far larger role in shaping the form and structure of the UK energy industry over the coming years. Market recovery may be impacted in part by changes to the UK’s relationship with Europe. Yet, as a mature and expensive play, the future of the UKCS will be largely decided by oil price.

Marina Ivanova, Douglas-Westwood London

Ships have been sailing the seas for thousands of years, and with modern technological advances and innovation, the industry continues to improve and innovate. While in 1912 the Titanic hit an iceberg that it couldn’t detect, today, connected devices, modern radar, sonar, data and GPS equipment are able to show where obstacles lie and re-route any ship onto a safer path, whether it’s carrying holidaymakers, LNG or cargo.

Just as connected devices are making headway on land, with computer chips in cars, buildings and everyday items such as watches and fridges, connected ships are growing in popularity at sea thanks to their ability to streamline and improve marine operations.

Image courtesy: GE Power Conversion

While it could be said that more is being done to integrate and adopt digital technologies in the consumer space, we have to recognize the strides that the marine industry has taken—from introducing automation and control system to implementing real-time fleet tracking. It’s also vital to note that a consumer device, whether that be a car, fridge or watch, is a completely different beast from a 150,000 ton ship, so the two worlds can’t move at the same speed. However, the key benefits of connected components remain the same no matter what industry we are discussing. This is why forward-looking fleet operators are investigating using advanced software analytics to harness data and provide insights into enhance operations.

Here we outline the five key benefits of implementing digital operations aboard a vessel:

Route optimization and fuel efficiency

Gone are the days of looking to the sun, moon and stars to navigate ships across the deep sea; now navigation is not a leap of faith, it’s a science. Each modern vessel, whether an offshore drill ship, cruise liner or LNG carrier, is fitted with a digital navigation system, which can not only identify the quickest routes in advance, but can also spot obstacles and re-route ships on a safer, or calmer, path when necessary.

This is crucial for the safety of the crew and also for reducing fuel consumption. It’s no secret that both fuel saving and optimizing operations have been the main drivers of introducing digital technology into a fleet because in some cases, fuel costs account for up to 40 percent of total operational expenses. Use of technology has the ability to reduce this figure as predictive analytics tools can bring in weather forecast data to optimize route planning, manage propulsion levels and reduce overall fuel consumption.

Fleet management

Fleets are growing in size, and vessel operators may have hundreds of ships out at sea at any one time. Keeping track of all these ships at once may not be simple, but that knowledge provides an advantage to operators. By looking at an entire fleet, not just at each vessel in a silo, operators can automatically check operating performance against other ships, highlighting anomalies or inefficiencies aboard a specific vessel, which might indicate the need for upgrades, operational tweaks or repairs. Digital technologies are revolutionizing and simplifying this process, and it’s not just fleet operators that are responsible for spotting potential issues; the use of predictive analytics systems also allows GE experts from around the world to compare operational statistics and data against other fleets, providing a greater pool of data from which they can draw insights. This allows GE to use its wider global visibility to provide support at scale, spot trends, increase the reliability of a fleet and provide crucial information for decision support.

Improve design and testing from the outset

The use of data and predictive analytics is not just crucial when a ship is at sea, but also in its design phase. Combining decades of experience, software modellng tools can analyze a vessel’s anticipated operational profile, optimizing the design from the offset. It has the ability to test the performance of a ship’s systems against mathematical models and against different combinations of weather and other marine conditions to assess and refine vessel performance.

Used during the shipbuilding process, software analytics can also provide fast, real-time comparisons of the performance of different electrical configurations, enabling improved design and configuration of electrical solutions and estimating the annual running costs incurred by the vessel design, so equipment selections can be made to reduce fuel consumption and achieve further savings.

Reduce downtime

Unanticipated outages on board vessels can cost serious money. In fact, unplanned downtime for a drillship can end up costing up to $12 million per year. However, predictive analytics tools, such as GE’s SmartSignal software, can identify impending equipment failures before they happen, reducing unplanned downtime.

A digital model, called “the digital twin,” can be built based on years of a vessel’s data history. By comparing asset to asset and vessel to vessel with “the digital twin,” the software is able to search for anomalies and give early warnings of a potential failure, enabling the industry to shift from planned to condition-based maintenance.

Remote monitoring

The use of data allows companies to monitor vessels in real time, record and analyze their histories and search for anomalies. Software and connectivity can bring the issues encountered on board a vessel to the experts on shore, allowing issues to be resolved more quickly and helping to reduce third-party cost.

What’s more, the use of predictive analytics also helps address a global skill shortage. Few vessel operators have access to sufficient qualified engineers to be able to deploy experts in every system aboard every vessel. As such, being able to resolve issues from the shore can significantly enhance operations and reduce the number of engineers needed without sacrificing safety or operational performance.

There will be many large employers that risk losing 50 to 80 percent of their retirement-eligible population in the next five years. The use of analytic tools also allows knowledge and insights to be stored, capturing and retaining some of the experience that would otherwise be lost when personnel retire. It enables good practices to be repeated and scaled across the fleet—again, a key contributor to bridge the skill gap.

The marine industry is continually evolving to reflect a dynamic and ever-changing world. However, while there has been a tidal wave of innovation over the last decade, there is still a ways to go. This is why GE’s Marine Solutions is helping marine companies enhance efficiency, cut carbon emissions, increase productivity and enable smarter operations through use of digital technologies. Navigating through choppy waters is no easy task, and marine operators need expert support to help sail through the economic tempest we’ve seen over the last few years.

By Tim Schweikert

InterMoor, an Acteon company, has successfully completed the final tensioning and chain cutting operations on the FPSO Turritella for the Shell Stones project, located in the Walker Ridge protraction area in the Gulf of Mexico (GoM).

The FPSO Turritella (photo) will connect to subsea infrastructure located beneath approximately 9500 ft (2896 m) of water, breaking the existing water depth record for an oil and gas production facility. This ultra-deep water project marks the first FPSO for Shell in the GoM, and the second FPSO in the GoM.

Having arrived in January 2016, the Turritella is a dis-connectable turret moored FPSO with nine mooring lines consisting of chain and polyester, arrayed in three bundles of three. The mooring lines were attached to a dis-connectable Buoyant Turret Mooring (BTM) buoy in field, awaiting the FPSO’s arrival. Each mooring leg has an in-line mooring connector (ILMC) tensioning system, located approximately 900 ft below the surface, which was pre-tensioned after connection to the BTM. Once the Turritella arrived, and the BTM was recovered by the FPSO. InterMoor’s work scope consisted of chain final tension adjustments through the ILMC system, subsequent cut and removal of excess chain, and riser pull-in rope stretching and transfer to the FPSO.

InterMoor used the Seacor Keith Cowan anchor-handling vessel (AHV) to perform the first phase of the operations and later moved to a larger construction vessel already on charter and on standby.

Tom Fulton, global president, InterMoor, said, “InterMoor supported this FPSO’s mooring needs by utilizing a cost-effective and Jones Act compliant anchor handling vessel, whereas competitors would typically resort to a large construction vessel.

“We were able to successfully provide full project management and engineering, including: design, procedures, procurement, dock support, offshore equipment and personnel for all phases. Our team also designed installation aids and fabricated them in our Morgan City facility, in Louisiana.”

Acteon sister companies worked alongside InterMoor on the project, with UTEC providing the positioning survey for the AHV, and Mirage custom-designing and fabricating the diamond wire cutting saw and clamping system.

InterMoor also provided the following services for the Turritella installation:

Joint integrity specialist Hydratight has deployed all offshore equipment to its facility in Gonzales, Louisiana to improve flexibility for customers.

Hydratight is an OEM of bolting and machining equipment. The decision to move their stock from Deer Park, Texas means it will be closer to the center of the oil and gas industry’s current activity in the Gulf of Mexico.

It comes as the company has invested $500,000 in new equipment for its rental service fleet and announced a new recruit in a sales management role.

Photo courtesy: Hydratight

Leonard Brasseaux joins as product account manager and will be responsible for the upstream market in Louisiana, Alabama and Mississippi, focusing on all offshore activity. His most recent career achievements were as part of Halliburton’s business development team over the last 10 years. He lives in Louisiana and will use Gonzales as his main base.

Chad Brooks, Product Market Leader – Upstream, Hydratight, said: “We’re delighted with the three streams of operational investment and are particularly glad that Leonard has chosen to join us as we expand operations in the Gulf of Mexico region.

“It’s vital we are prepared to meet any demands. We have a reliable, experienced team and a large stock of sales and rental equipment poised for use in offshore markets. We’ve refreshed our fleet and from Gonzales will have faster access to all key coastal locations for rental and service.”

Hydratight is wholly owned by Actuant Corporation, a diversified industrial company serving customers from operations in more than 30 countries and headquartered in Menomonee Falls, Wisconsin. Actuant trades on the NYSE under the symbol ATU. For further information on Actuant and its businesses, visit the Company’s website at actuant.com.

The North Sea will see a rise in infrastructure deals this year, with private equity funds playing an increasing role in midstream assets, according to business advisory firm Deloitte.

Shaun Reynolds, Director, Transaction Services, Deloitte

Against the backdrop of a low oil price, more oil and gas companies are looking to rationalise their portfolios and divest non-core assets in the UK Continental Shelf (UKCS), the firm said – with private equity and specialist infrastructure funds likely purchasers.

Deloitte’s latest European Infrastructure Investors survey found that pipelines, in particular, have provided a solid and steady return over the last five years. The asset class was highlighted by investors as performing well compared with other infrastructure, including fuel storage, ports and renewables; the internal rate of return on pipelines reached 14% in the period 2013-2016.

Deloitte’s report also found that pipelines will remain a strong focus for infrastructure investors in the future, along with gas and fuel storage.

Shaun Reynolds, Director, Transaction Services, at Deloitte, said: “Historically, big oil and gas operators developed and owned what they needed, transporting their major discoveries through proprietary pipelines and refining it in their own processing plants. That’s largely remained the case, until the last two or three years.

“The ownership model has evolved, driven by the maturity of the basin and the low oil price. Established players are divesting to shore up their balance sheets, and infrastructure is comparatively less complex to value and sell, with a ready market at the right price.

“Private equity firms and specialist energy infrastructure funds are likely buyers – specifically those with a solid grasp of the UKCS. They’ll look to take a number of assets under management, create a portfolio, maximise their potential and then look to divest; most likely to a pension fund aiming for steady returns from a stable asset.”

In 2015, BP sold its stake in the Central Area Transmission System (CATS) to Antin Infrastructure Partners in a £324 million deal. Antin had bought BG Group out of its stake the previous year, giving it near-complete ownership of the asset.

The third party ownership model has been employed successfully in the US shale gas market for years, while oil and gas infrastructure in The Netherlands and Norway is commonly owned by private equity or pension funds.

Shaun added that the changing asset stewardship of North Sea infrastructure could be a positive development for the industry, with 20 billion barrels still recoverable in the basin.

Shaun commented: “It’s a positive step for the UKCS. Private equity will provide focussed management of the assets and ensure they are being used to their utmost potential. That can only be a good thing, particularly from a longevity perspective as we seek to make the most of the North Sea.

“Whatever the case, there’s a strong appetite from investors for North Sea infrastructure – but only at the right price. As the oil price continues to take its toll and pressure mounts on balance sheets, more operators will have to look at rationalisation and infrastructure tends to be a logical sale. Deals are brewing in the UKCS – and we’ll see more on the infrastructure front in the short- to medium-term.”

GAC EnvironHull has announced that its pioneering hull cleaning system, HullWiper, will be available for vessels berthing in the Port of Rotterdam next month.

HullWiper - which will be demonstrated at an event co-hosted by GAC EnvironHull and the Port of Rotterdam at the port on 23 June - is a diver-free remotely operated vehicle (ROV) that eliminates the need for divers to clean the vessel, cutting costs and reducing the risk to human life.

Unlike other cleaning solutions, HullWiper uses seawater under high pressure as a cleaning medium, instead of brushes or abrasives, minimising damage to the antifouling surface. This optimises performance and creates energy efficiency savings for ship owners, as well as reducing expenditure needed to recoat the hull.

Photo courtesy: GAC

Removed residues and harmful materials are collected in a special waste unit connected to the ROV, so waste is not discharged into the sea to ensure it meets local and regional environmental regulations – a key focus for the Port of Rotterdam.

Christer Sjödoff, GAC Group Vice President, Commercial, says: “As the gateway to the European market and a port that pioneers new thinking around the environment, Rotterdam is the perfect location for HullWiper. We believe that European ship owners will continue to see the commercial and environmental benefits of the technology, as already seen in Norway, Denmark, Sweden and Spain.

“Our upcoming launch event and panel discussion, organised in conjunction with the Port of Rotterdam, further underlines GAC EnvironHull’s commitment to the service in the Netherlands, and sends the message that the GAC Group is pushing the boundaries of innovation and environmental compliance.”

The panel discussion, titled ‘Smart Ship Technologies and Measures for Greener Ports’, will include the first live demonstration of HullWiper in the Netherlands. The event will take place on Thursday, 23 June at Rotterdam’s Drijvend Paviljeon from 15:30-18:00.

Representatives from the Port of Rotterdam, shipping industry figures and environmentalists will gather to discuss the challenge of pollution in port waters, give an update on the regulatory landscape, and showcase solutions to reduce hull degradation and improve energy efficiency.

A demonstration of GAC Environhull’s latest free online fuel savings calculator will also be carried out at the event. This will enable participants to get an instantaneous and accurate calculation of how much they could save using Hullwiper, compared to traditional methods.

Swiber Holdings Limited (“Swiber” and together with its subsidiaries, the “Group”), a leading global offshore construction services provider to the oil and gas industry, has secured three new contracts for projects with a total value of US$215 million in the Middle East and Southeast Asia regions.

Said Mr. Darren Yeo, Deputy Group CEO of Swiber, “Despite the ongoing oil market volatility and challenging conditions in the offshore oil and gas industry, Swiber continues to demonstrate our ability to successfully secure new projects. In fact, one of these new projects represents an important breakthrough for Swiber into the lucrative Middle East market.”

Swiber was awarded an EPCI (“Engineering, Procurement, Construction and Installation”) contract from a European oil major to perform pipeline replacement work in Qatar, marking the Group’s first offshore construction project in the Middle East. The Group has commenced the engineering phase of this project which is scheduled for completion in the third quarter of 2017.

“This job is for a repeat customer with whom we have worked closely on numerous projects across the globe. It is a testament of our proven experience and execution capabilities that the customer is once again entrusting Swiber with this project in Qatar,” said Mr. Yeo.

Swiber recently also won new contracts for a further two projects in Myanmar and Vietnam, which solidifies its market position in Southeast As.

The Group is participating in a consortium that will carry out EPCI of two wellhead platforms, associated pipelines and tie-ins for a project off the coast of Myanmar for a major Southeast Asian oil and gas company. This project commences immediately and is expected to be completed by the first quarter of 2018. The customer has options to award an additional two wellhead platforms.

The third contract involves the provision of transport and installation services for a full field development project in the waters off Vietnam. The Group has recently started work on this job, which is targeted for completion in the third quarter of this year.

“While Southeast Asia has seen a slowdown in offshore oil and gas activities over the past couple of years, it remains an important market for Swiber as our projects in this region contributed US$117.1 million or 14.1% of the Group’s revenue in 2015. Our project wins in Myanmar and Vietnam will solidify the Group’s established market presence in the region,” said Mr Yeo.

These latest contracts have lifted Swiber’s order book to around US$1.2 billion. The contracts are expected to contribute to the Group’s financial performance in the current financial year ending December 31,2016. The US$100 million EPIC contract awarded to Swiber in February 2016 has been re-tendered by the customer due to changes in the project work scope and schedule. Swiber will soon be submitting its bid for this project.

“As an established provider of EPCI services for shallow water oil and gas field development, Swiber remains in a good position to weather the current industry downturn. We continue to see opportunities in our target markets and are actively working on new tenders to grow our pipeline of projects,” Mr. Yeo said.

The Group is presently bidding for projects with a combined value of US$3.4 billion, made up of US$1.65 billion for Africa/Europe, US$750 million for Latin America, US$550 million for Southeast Asia and South Asia and US$450 million for the Middle East.

On 6 June 2016, Swiber also fully redeemed its Series 16 S$130 million Fixed Rate Notes.

During the Oceanographic Survey Vessel Conference in London, Damen Shipyards Group announced the introduction of a new range of Multi-Role Auxiliary Vessels (MRAV). The common theme running through the series is the provision of a basic platform offering reliable and cost-effective multi-role potential and hydrographic survey capabilities to naval clients.

With the addition of supplementary modular mission equipment, this new family of Damen vessels can be mobilized in numerous, mainly littoral, naval tasks such as: explosive ordnance clearance and disposal, diving operations, torpedo recovery and overhaul, ROV and UAV deployment, SAR, coastal infantry and submarine support. The largest version of the range will be able to operate worldwide, on the ocean as well as in littoral waters. This ship has additional capabilities such as disaster and humanitarian relief, oceanography and naval training support.

The introduction of flexible concepts which allow as many functions as possible to be included into a range of smaller vessels without reducing the effectiveness and capacity of the fleet while maintaining the benefits of modularity; this is Damen’s ambition with this new family of vessels. “To this end, plug-and-play containerised kit for many support tasks contribute considerable adaptability to a particular mission,” explains Damen Shipyards Gorinchem’s Principal Naval Advisor Jan van der Burg, a retired Vice Admiral of the Royal Netherlands Navy.

One platform – multiple tasks

“The idea behind these vessels is to create a basic platform that can assist in a variety of tasks through the selection of the required mission configuration, e.g. coastal transport, submarine support or coastal infantry operations. The stimulus to switch from the traditional one-to-one replacement is to lower the total cost of ownership without losing capability and capacity.”

The new range of vessels consists of three different designs: the MRAV 660, MRAV 1600 and MRAV 3600. Designed for different geographic profiles, these vessels are respectively 43, 62 and 85 metres long. Hydrographic capabilities, to map the seabed for safe navigation and as a preparatory action for military operations in particular, are indispensable to navies worldwide. Depending on a naval client’s specific requirements, any type of hydrographic equipment can be integrated into these three vessels.

Minimal draught

With a draught of 1.9 meters, the MRAV 660 is suited for very shallow coastal, riverine and inland water operations. In addition to shallow water hydrographic surveys, this vessel is capable of a comprehensive array of duties such as diving operations, EOCD support, ROV and UAV deployment, with a core crew of 8 and capacity for an additional 15 specialists.

“Damen has built up a lot of knowledge on shallow draught ship design – this is the reason we strived towards a shallow draught hull for the MRAV 660 with full confidence. The expertise of our Research Department, combined with input from our Workboats Product Group contributed to a design based upon tested design solutions,” notes Damen Design and Proposal Engineer Tim Viveen.

“The key points are to maximise displacement, minimize resistance and optimize seakeeping characteristics for the area in which the ship will operate. The MRAV 660 has design characteristics that help achieve this: an aluminium superstructure and reduced freeboard section cut down on weight. And tunnel ducts on the underside of the hull ensure enough water reaches the propellers.”

Additional roles

The MRAV 1600 is designed for littoral and regional offshore operations. Its larger size allows for greater endurance and carrying capacity of both crew, mission modules and cargo. The vessel will be manned by a core crew of 13, with capacity for an additional 30 mission specialists. The main deck can hold six standard 20-foot mission containers and the below-deck cargo hold can store two 20-foot containers and palletised cargo.

This medium-sized vessel can take on similar hydrographic and auxiliary duties to its smaller sister vessel, with the addition of torpedo recovery and overhaul tasks in support of submarines and anti-submarine warfare units. Small scale coastal transport and infantry support is also possible.

Global coverage

Intended for worldwide service, the capacity of the largest vessel in the range – the MRAV 3600 – allows for more than one specific mission during a deployment. Capable of hydrographic operations both in littoral and deeper waters, this vessel also has a helideck and substantial storage capacity for other mission configurations, equipment and cargo. Furthermore, the MRAV 3600 can serve as a base for more extensive operations such as disaster and humanitarian relief. There is accommodation for 14 core and 45 additional mission crew and enough space on board to provide emergency hospital services for 50 to 60 people.

Advantages of modularity

One of Damen’s key aims with this new range of vessels is to reduce the pressure on a navy’s human and financial resources. The modularity of the mission modules also plays a major part in reducing this pressure: “We achieved this by combining the capabilities of specialized ships into one ship by using these add-on equipment modules – these can be fitted inside standard 10-, 20- or 40-foot containers or have the footprint of a standard container,” states Damen Design and Proposal Manager Piet van Rooij. “When operating multiple ships of the same family and design, the efficiency of training, crew exchangeability and maintenance programs are improved.”

Cost results

A modular platform is inherently flexible: this allows naval clients to better react to changes in the mission environment. Modularity also has implications on the total cost of ownership: the lifetime of an individual vessel can be efficiently extended by upgrading capabilities with new equipment modules that are not integrated into the original design.

Financial advantages are to be found in the fact that the MRAV range is commercially built and also uses commercially available components. This is made possible because of the vessels’ non-combatant role. Mr. Van Rooij: “Using commercial off-the-shelf equipment reduces the total cost of ownership without reducing the quality of the equipment.”

Complementary design

The ship design itself has a proven background: “Damen has built many ships similar to the MRAV range for the offshore industry. This means that there will not be any unwanted surprises for the first customer of this new range.”

Damen has a rich naval shipbuilding heritage; one that goes back more than a century. The new Multi Role Auxiliary Vessel range serves to expand the company’s naval portfolio that includes larger vessels such as frigates, corvettes, LPDs, AORs and OPVs. “These new MRAV designs are complementary to the range of ships that Damen already offers for the defence and security markets,” concludes Mr Van Rooij. “We are currently at the stage of finalised conceptual design. Considering the next step, being more detailed engineering while taking advantage of COTS equipment and tested designs, we are confident that the actual construction can be swiftly accomplished, with excellent quality and reliability.”

International oil and gas turnkey contractor, Saipem, has extended the capability of its Sonardyne sixth generation (6G) acoustic positioning transponders, adding functionality that makes the equipment now suitable for a wide range of subsea autonomous monitoring tasks.

The work to convert the Compatt 6 instruments into Autonomous Monitoring Transponders (AMTs) was undertaken by engineers based at Sonardyne’s Brazilian headquarters in Rio das Ostras as part of a wider scope of work to inspect, service and re-calibrate Saipem’s inventory of Long BaseLine (LBL) acoustic technology located in the region.

Sonardyne’s AMT enables users to conduct long endurance, remote monitoring surveys without the need for a surface vessel and ROV to be present throughout the project. Photo credit: Sonardyne

Sonardyne’s AMT enables users to conduct long endurance, remote monitoring surveys without the need for a surface vessel and ROV to be present throughout the project. Applications for it range from a single instrument deployed to measure tidal variation, to a large, field-wide network capable of detecting subtle trends in structure movement, pipeline creep and seabed settlement.

The autonomous functionality built into every AMT enables it to operate for several years without operator intervention. Measurements from its suite of onboard sensors are logged in the unit’s memory and can be recovered at any time by an AUV, ROV or vessel-of-opportunity using high-speed wireless communications.

“The 6G technology platform on which both Compatt 6 and AMT are built is very versatile, and enables users to upgrade and switch capability as their operational needs grow and stretch,” commented Paul Smith, Operations Director of Sonardyne Brasil Ltda. He added, “The engineering and equipment testing facilities we have here in Rio das Ostras meant the work to service Saipem’s LBL hardware and convert some of their Compatts to AMTs, could be completed without the cost and delays associated with sending equipment out the country. For our customers, this means they can get back to work and keep their projects and budgets on schedule. Something that the entire offshore industry is focused on at the moment.”

For more information on AMTs, click here.

Engineers and analysts from the Bureau of Safety and Environmental Enforcement's (BSEE) Gulf of Mexico and Alaska Regions recently evaluated Spill Response Operations Training and Equipment Verification exercises conducted by the Tennessee Gas Pipeline Company and its oil spill removal contractor at the Port of Morgan City, La. These exercises are required periodically to test spill response team training and resource availability, as part of each operator’s Oil Spill Response Plan.

Photo courtesy: BSEE

The exercises were held in mid-May on board two responder vessels of Clean Gulf Associates, which was contracted by Tennessee Gas Pipeline. During the spill response exercise, BSEE staff evaluated Clean Gulf’s Spill Response team and their training of a group of responders seeking team member certification. Along with the spill response training evaluation, BSEE simultaneously conducted an equipment verification of Clean Gulf’s oil spill resources. Both vessels maneuvered offshore and deployed specialized equipment to simulate a spill response. The responders also tested the effectiveness of their oil boom apparatus, skimmers, motorized components and vessel performance. Staff from BSEE's Oil Spill Preparedness Division and Tennessee Gas Pipeline boarded each vessel and assessed response actions.

Spill Response Operations Training and Equipment Verification exercises are part BSEE's many efforts to make sure that offshore operators will be ready to effectively manage a real spill, should one occur.

Aker Solutions has won a contract to deliver its longest-ever umbilicals system at the Zohr offshore gas field in the Egyptian part of the Mediterranean Sea.

Photo courtesy: Aker Solutions

The agreement with Petrobel in Egypt is worth more than NOK 1 billion and will be booked in the second quarter. It stipulates the delivery of 180 kilometers of steel tube umbilicals that will connect the Zohr subsea development to an offshore control platform. Petrobel, a joint venture between The Egyptian General Petroleum Corporation (EGPC) and Eni, is responsible for the development and operations at Zohr.

"Aker Solutions is building on its previous experience offshore Egypt to now deliver its largest-ever umbilicals project," said Luis Araujo, chief executive officer of Aker Solutions. "We are very pleased to support Petrobel and Egypt on this important development."

The work will be led by Aker Solutions' subsea division in Oslo and manufacturing will start immediately at the umbilicals plant in Moss, Norway.

The company has invested substantially in the Moss facility over the past years. The plant has more than 20 years of experience in making the most advanced and complex umbilical systems, which are used to transport data, power and liquids between oil and gas installations on the seafloor and facilities onshore or on platforms.

The umbilicals system will be delivered by mid-April 2017.