Statoil is establishing a digital center of excellence and launching a roadmap with seven specific programs for digitalization in the company towards 2020. Digitalization will help improve the safety, security and efficiency of Statoil operations.
Towards 2020 Statoil expects to invest NOK 1-2 billion in new digital technologies, accelerating the digital roadmap work. Digital technologies will also be part of other Statoil technology and research projects.
“Aiming to be a global digital leader within our core areas, we are now stepping up our efforts to capture opportunities provided by the rapid development within digital technologies,” says Statoil’s chief executive officer, Eldar Sætre.
The oil industry is already extensively utilizing IT technology and digitalization, but the rapid technological development creates new opportunities, particularly within the following areas:
- Digitalization of work processes Improving the efficiency of the way we work by reducing the time spent on manual and repetitive tasks, where possible.
- Advanced data analytics Improving our understanding of extensive and complex data for better decision-making by means of advanced data analytics and machine learning.
- Robotics and remote control Increasing the operational regularity, reducing costs and improving safety and security by reducing human activity in physically intensive activities.
Examples of this are robotic drilling and automated installations.
“Digitalization can help improve the safety and security of our operations, both by means of data that provide us with a better decision-making basis, and through reduced exposure in risky operations. A combination of digitalization, standardization and a culture for continuous improvement may drive cost reductions, and form the basis for increased value creation and activity,” Sætre says.
Digital center of excellence
Statoil is establishing a digital center of excellence that will coordinate and manage the digitalization efforts across the company. The center of excellence will collaborate with external specialist communities, have dedicated units for data analytics, machine learning and artificial intelligence, as well as leaders for digital programs. Statoil will recruit candidates for the center of excellence both internally and externally, and the leader will report to Statoil’s chief operating officer (COO).
Seven programs for digitalization
Statoil is establishing a roadmap with seven programs in the further digitalization process:
1 Digital safety, security and sustainability Using data to reduce safety risks, improve learning from historical incidents, strengthen security, and reduce the carbon footprint of our operations.
2 Process digitalization Streamlining of work processes and reduction of manual input across the value chain.
3 Subsurface analytics Improving data accessibility and analytical tools for subsurface data, enabling better decision-making.
4 Next generation well delivery Enhancing utilization of well and subsurface data for planning, real-time analytics and increased automation.
5 Field of the future Smart design and concept selection by maximizing the use of available data, and integrating digital technologies in future fields.
6 Data-driven operations Using data to maximize asset value through production optimization and maintenance improvements.
7 Commercial insights Improving analytical tools and data accessibility within our commercial areas to enable better decision-making.
“The roadmap and the seven programs will help accelerate the digital development of Statoil. Utilizing the digital opportunities that large volumes of data provide, we make better decisions, enabling improved safety and security, reduced emissions and more efficient operations,” says Jannicke Nilsson, Statoil’s chief operating officer (COO).
Okeanus Science & Technology, LLC (Okeanus) has announced the launch of its highly-anticipated online marketplace, SeaCatalog.com (SeaCatalog). Through SeaCatalog, suppliers of subsea survey and oceanographic equipment and products can sell to a targeted audience of customers online. Customers will be able to search for gear, interact with manufacturers, receive quotations, and make purchases through SeaCatalog’s shopping platform.
SeaCatalog will offer customers a simple, convenient resource to purchase products from multiple manufacturers, simplifying sourcing and decreasing procurement expenses. “SeaCatalog’s goal is to be the single place for customers to go to equip a team or vessel to undertake a survey or other scientific project in the marine environment,” said Benton LeBlanc, President of Okeanus.
Customers of SeaCatalog will also be able to obtain rental quotes from Okeanus for scientific equipment in its inventory.
“We’re extremely excited to see SeaCatalog launched and open for business,” stated LeBlanc. “It opens an entirely new channel for equipment providers to broaden their customer reach and makes it easier for them to access markets that they may not otherwise have entrance to.”
“Having watched the tremendous changes that have occurred in our industry over the last forty-five years, I can say that an e-commerce site like SeaCatalog is long overdue,” added Ted Brockett, Okeanus’ CEO. “From the perspective of a marine equipment manufacturer or system integrator, the concept of “one-stop-shopping” is very appealing. I believe that SeaCatalog represents a great sales tool for all of us who develop and manufacture products for the industry, as well as a powerful resource for end users and buyers.”
Vendors and customers are encouraged to visit the SeaCatalog website to learn more about the products and services available.
The Bureau of Ocean Energy Management (BOEM) has announced it will offer approximately 1.09 million acres off Alaska’s southcentral coast in a lease sale scheduled for June 21.
Cook Inlet Oil & Gas Lease Sale 244 will offer 224 blocks toward the northern part of the federal Cook Inlet Planning Area for leasing. The blocks stretch roughly from Kalgin Island in the north to Augustine Island in the south.
“We conducted a robust environmental analysis and look forward to holding Alaska’s first OCS lease sale since 2008,” said Dr. Walter Cruickshank, BOEM’s acting director. “The areas offered for leasing represent a careful balance between jobs, energy development, and natural resource protection.”
The Final Notice of Sale (FNOS) and a copy of the Record of Decision (ROD) affirming the sale are available now here. The FNOS and a Notice of Availability for the ROD will be posted tomorrow (Friday, May 19) in the Federal Register Reading Room, and published on Monday, May 22, in the Federal Register.
The lease sale will be entirely webcast via a link here. The live stream may be accessed beginning at 9 a.m. Alaska Time. From 9 a.m. to 10 a.m. viewers will see a stand-by notice; the bid reading will begin at 10 a.m. Livestreaming a lease sale enables BOEM to deliver pertinent bid information immediately to a broad national and international audiences, making it unnecessary to attend the lease sale in person.
The lease sale is the thirteenth and final OCS lease sale under the Outer Continental Shelf Oil and Gas Leasing Program for 2012-2017 (Five-Year Program). Together, these lease sales have netted more than $3 billion for American taxpayers.
In December 2016, BOEM published a Final Environmental Impact Statement relating to the lease sale. The EIS analyzed the important environmental resources and uses (e.g., sea otter and beluga whale populations; subsistence activities; commercial fishing of pacific salmon and halibut; and more) that currently exist within the Cook Inlet Planning Area and identified robust mitigation measures to be considered in leasing the area. Mitigation measures identified in the Final Notice of Sale would protect sea otter, beluga whales, and subsistence, recreational and commercial fisheries.
The lease sale terms include stipulations to protect biologically sensitive resources, mitigate potential adverse effects on protected species, and avoid potential conflicts associated with oil and gas development in the region. BOEM’s proposed economic terms are designed to encourage diligent development and ensure a fair return to taxpayers. A full list of terms and conditions are in the Final Notice of Sale.
For more information, including a map of the lease sale area and a timeline of the leasing process, click here.
At a time when other vessel operators are stacking vessels and reducing fleet size, Harvey Gulf International Marine continues to set itself apart by signing four non-cancelable, long term contracts for stacked vessels and taking delivery of two new vessels, as well as redelivery of vessel reconfigured for subsea services.
Harvey Gulf announced the signing of long term contracts for the MPSV Harvey Intervention, 175' FSV Harvey Hustler, 180' FSV Harvey Runner and 220' FSV Harvey Express. These charters follow Harvey Gulf’s recent agreement with Delta Subsea to outfit the previously stacked M/V Harvey Steeler to provide ROV and survey services.
The Harvey Intervention was redelivered in April, 2017 with increased accommodations, totaling 75 persons and a new NOV 165 MT AHC ultra deep-water knuckle boom crane. This crane gives the Intervention 180FT OF HOOK HEIGHT, more than any other US or foreign flagged MPSV crane vessel of its size, and capability of lowering sub-sea equipment to 3,600 meters.
Last week, Harvey Gulf took delivery of the 310' OSV Harvey Freedom, its fourth LNG OSV, which immediately joined its sister vessels and began a five-year charter signed with Shell Oil in May of 2016. The next day, Harvey took delivery of the 340' class MPSV Harvey Sub-Sea. The Harvey Sub-Sea extends the boundaries for her class of vessels. She has a NOV 250MT AHC Knuckle Boom Crane with 4000 meters of wire, all of which are stored below deck, increasing the working deck load parameters. The Sub-Sea sleeps 150 persons in 87 one and two man rooms with an amazing client suite. The moon-pool is 24’ X 24’with strengthening around the perimeter, enabling lowering equipment to be fitted in the area. The vessel is fitted with a 1” thick steel deck with a rating of 10mT per square meter and coffer dams below that allow for efficient welding and cargo securing cargo. This vessel truly demonstrates Jones Act vessels are here and ready for service.
Harvey Sub-Sea and sister ship, Harvey Blue-Sea, expected delivery July 2017
Harvey Gulf CEO Shane Guidry commented, “We are very thankful during this downturn that our clients still demand safety, operational excellence, and the newest technology, all of which only Harvey Gulf can deliver. We've worked 1363 days without a recordable incident and met our goal zero for the last 3.75 years. We have also achieved a 99.2 percent uptime utilization on contract, limiting mechanical downtime to .08 percent. No other company in our industry performs like we do at Harvey. My executive team and I are involved in every aspect of our business, day and night, and the numbers show it. We produce more EBDITA than all of our publically traded peer group combined. And we've done this quarter over quarter, with our SG&A approximately 70 percent less than the average of our publically traded peer group, enabling us to deliver the best service at the right price.
Former Louisiana state official Scott A. Angelle will head-up the Bureau of Safety and Environmental Enforcement. As part of the Department of the Interior, BSEE fosters safe and responsible energy production on the U.S. Outer Continental Shelf through regulatory oversight of oil and gas operations. Angelle, who most recently served as Vice Chairman of the Louisiana Public Service Commission, will assume his new position May 23.
“Scott Angelle brings a wealth of experience to BSEE, having spent many years working for the safe and efficient energy production of both Louisiana’s and our country’s offshore resources,” Secretary of the Interior Ryan Zinke said. “As we set our path towards energy dominance, I am confident that Scott has the expertise, vision, and the leadership necessary to effectively enhance our program, and to promote the safe and environmentally responsible exploration, development, and production of our country’s offshore oil and gas resources.”
Angelle, who will serve as the fourth director in BSEE’s history, has held numerous positions in Louisiana State and Parish governments, including Interim Lieutenant Governor, Secretary of the Louisiana Department of Natural Resources, and St. Martin Parish President. In the aftermath of the BP oil spill, Angelle served at the request of then Louisiana Governor Bobby Jindal as liaison to the federal government, and negotiated an early end of the previous administration’s drilling moratorium.
“I welcome the opportunity to serve President Trump and Secretary Zinke, and work with BSEE staff to meet the critical goal of energy dominance for our country,” said Angelle. “It is an exciting and challenging time for BSEE; I look forward to leading our efforts to empower the offshore oil and gas industry while ensuring safe and environmentally responsible operations.”
Angelle served for eight years as Louisiana’s Secretary of the Department of Natural Resources. Under his leadership, the state’s coastal permitting system was reformed, providing for efficient permitting while increasing drilling rig counts in Louisiana by more than 150 percent during his tenure. Angelle has also served as Chairman of the Louisiana State Mineral Board, and as a member of the Louisiana State University Board of Supervisors, Southern States Energy Board, and the Louisiana Coastal Port Advisory Authority.
Angelle is a native of Breaux Bridge, Louisiana, and a cum laude graduate of the University of Louisiana at Lafayette with a Bachelor of Science degree in Petroleum Land Management. He and his wife Dianne are the proud parents of five children and four grandchildren.
Established in 2011, BSEE fosters secure and reliable energy production through a program of efficient permitting, appropriate regulations, compliance monitoring and enforcement, inspections, technical assessments, and incident investigations. The position of BSEE Director is not Senate-confirmed.
M² Subsea, the global independent provider of ROV services, has secured its first contract award which is valued in excess of one million pounds. The project will see the firm supplying the Go Electra vessel, ROVs and personnel to support survey work on the world’s longest subsea pipeline system.
The company, which has bases in Houston and Aberdeen, has been sub-contracted by Next Geosolutions, an independent geoscience and engineering service provider, to deliver the campaign in the Baltic Sea for the Nord Stream 2 project.
Next Geosolutions was appointed to carry out unexploded ordnance identification (UXO) surveys on the two new pipelines.
The campaign for Nord Stream 2, an extension of the world’s longest pipeline, will be undertaken in an area noted for munitions discoveries following the end of World War II.
To support the 90-day project on the Nord Stream 2, M² Subsea has signed its first charter agreement for the multipurpose support vessel (MSV) the Go Electra, which recently successfully completed its first five-year class inspection.
The scope of work will be project managed from Aberdeen and will see the MSV deployed from Hanko in Finland, and supported by 15 of M² Subsea’s personnel who will carry out the UXO identification work utilizing a Triton XLX 2 Work Class ROV and a Mohican 5 observation/inspection class ROV from the firm’s fleet of 28 assets.
M² Subsea chief executive officer Mike Arnold said: “This contract award from Next Geosolutions is great for the business and a significant scope of work for us to win. It highlights both our personnel and asset capabilities to negotiate what is a very challenging subsea environment.
“Safety is a key factor on every project and in particular where it involves surveying the seabed to identify undiscovered explosive devices for removal. We are very pleased to have chartered the Go Electra which is a highly specialised vessel for subsea inspection, repair and maintenance work and ideal for supporting the conditions the team and ROVs face in the Baltic.
“To be chosen to deliver this geophysical survey also highlights the industry’s increasing appetite for engaging with companies of all sizes if their focus is on delivering the best value via a well thought out strategy which involves the most experienced people as well as the most well-suited vessel and assets for the job in hand.
“We look forward to delivering a safe and successful project for Next Geosolutions.”
Giovanni Ranieri, Next Geosolutions’ CEO, said: “This is an exciting project for Next Geosolutions and we’re delighted to have the opportunity to work with M² Subsea. The workscope allows us to further cement our position in the geoscience market and it reinforces our key objective – to fully appreciate our clients’ requirements and provide them with high quality solutions.”
The Nord Stream twin offshore pipeline system runs from Russia to Germany and measures 1,244km in length.
Manufacturing a hydraulic power unit (HPU) that is destined to operate on the ocean floor up to depths of 2,500 metres requires considerable expertise and design excellence in order to deliver reliable and sustained performance. Having provided the build and test service for some time, Sulzer has now taken on the procurement phase of the process to release the client from this time intensive task.
The design and construction of remotely operated underwater vehicles (ROVs) is a specialist field and the components used to create the HPUs need to be carefully selected in order to produce a reliable, long-lasting unit. Furthermore, specialist equipment such as this is only built to order so a timely delivery is essential to ensure that the build schedule is maintained. Sulzer is now providing a complete service that delivers a fully guaranteed HPU to the world’s leading independent designer and manufacturer of work class ROVs.
Sulzer’s Middlesbrough Service Centre has a dedicated work area which ensures high quality components are correctly assembled and tested.
Soil Machine Dynamics (SMD), based in Wallsend, near Newcastle-upon-Tyne is a leading designer and manufacturer of work class and specialist subsea remotely operated vehicles that are used in oil and gas exploration as well as maritime exploration and mining. The company has designed and built over 400 subsea vehicles as well as delivering the control systems, umbilical systems and launch and recovery systems (LARS).
SMD Hydraulic Power Unit
The ROVs require hydraulic power to drive a number of on-board systems, depending on the configuration and prime purpose of the vehicle. SMD specialises in subsea equipment that can be fitted with a range of tools that rely on the hydraulic power generated by the HPU assembled and tested by Sulzer.
Initially, Sulzer was contracted to assemble and test new components, but this service was soon expanded as Paul Richardson, Service Centre Manager at Sulzer’s Middlesbrough facility, explains: “A few years ago we would have been sent a kit of parts that had been sourced by SMD and it was our responsibility to assemble the unit and carry out the performance and quality tests. Our working relationship has developed to such a point that we have now been handed the responsibility of the procurement phase as well.
“This new arrangement means that SMD simply place an order with Sulzer and we build the new unit according to SMD specifications. The new and fully guaranteed unit will be delivered on the agreed date, which fits neatly with the build programme. In this way SMD will use Sulzer as a one-stop shop, no longer needing to spend time and money chasing the numerous suppliers.”
Sulzer’s Middlesbrough Service Centre, which recently moved to new purpose-built premises on Middlehaven, has a dedicated work area for this operation, which ensures high quality components are correctly assembled and tested. This is supported by a team that provides the necessary logistical and engineering support to ensure all the required performance criteria and quality standards are met.
Paul Richardson concludes: “Currently we are equipped to manufacture all seven models of the standard hydraulic power units, which range in output from 11.5 kW to 185 kW. This new arrangement provides an assured delivery of components and allows SMD to concentrate on creating new solutions.”
Sulzer is the leading worldwide, independent service provider for large rotating equipment. With technically advanced and innovative service and maintenance support solutions, Sulzer provides a turnkey service that provides its customers with the peace of mind to focus on their core operations.
Included in this package is a highly efficient and dependable high-voltage coil manufacturing and supply service, delivered from a purpose built facility within the Birmingham Service Centre, UK. It is recognized for producing very high quality coils for high voltage motors and generators; designed, manufactured and shipped by a highly skilled and dedicated team to ensure fast and reliable service.
With an in-house copper rolling mill, Sulzer customers can benefit from round-the-clock manufacturing to ensure that every coil is delivered on schedule. In conjunction with constant quality control and full HV on-site testing facilities, Sulzer can deliver quality, precision and speed, any time, day or night.
Oceaneering International, Inc. (“Oceaneering”) (NYSE:OII) announces that one of its oilfield business segments, Asset Integrity, has been awarded a three-year operational inspection Frame Agreement extension with Statoil Petroleum AS (“Statoil”).
The Frame Agreement provides for Oceaneering to develop and implement inspection and maintenance programs related to 14 specified Norwegian onshore and offshore facilities. The programs include the assessment and reporting of integrity status and corrective measures, and cover non-destructive testing, video inspection, vibration measurement, thermography, and heat exchanger inspection. The agreement also provides Statoil the opportunity to add other fields to the work scope.
Roderick A. Larson, President and Chief Executive Officer of Oceaneering, said, “The extension of the Frame Agreement further demonstrates our good, long-term relationship with Statoil, which is based on the delivery of safe, reliable, and cost-effective services.”
Wood Group has signed a 10-year master services agreement (MSA) with Chevron that allows them to deliver conceptual engineering, pre-front-end engineering design (pre-FEED), FEED, detailed design and procurement services in multiple locations across Chevron’s global onshore and offshore asset portfolio.
Contracts to provide topsides conceptual and pre-FEED for two semisubmersible platforms on the Tigris and Anchor developments in the Gulf of Mexico (GoM) have been awarded as the first work orders under this new agreement.
The Tigris and Anchor platforms will operate in 4,000 to 5,000 feet of water, approximately 140 miles offshore Louisiana in the GoM.
Chevron and Wood Group share a long-standing relationship, with several projects in the GoM, including Jack and St. Malo and Blind Faith, plus the Gorgon project in Australia.
Robin Watson, chief executive of Wood Group, said, “The MSA and Gulf of Mexico contracts continue our strong relationship with Chevron and demonstrate the quality of our people, our capability and our long track record of successful delivery to this key client.
“We have in excess of 30 years of experience in deepwater developments for a broad range of customers, from concept to closure. The amalgamation of this knowledge and experience will be brought to bear for Chevron for an optimal solution.”
Wild Well Control, Inc., a Superior Energy Services company and a global leader in well control and engineering services, has purchased subsea capping equipment from Shell EP Wells Equipment Services B.V.
The addition of this inventory enhances Wild Well’s current global equipment and response capabilities for the WellCONTAINED™ subsea containment systems and provides added capabilities for its 7Series Subsea Well Intervention group. The newly purchased equipment will be staged strategically in Houston, Aberdeen, Singapore and elsewhere, as needed, for global deployment.
Wild Well’s pioneering WellCONTAINED™ capping stack located in Singapore.
Wild Well and its WellCONTAINED™ program provide the most comprehensive package of subsea emergency response services in the industry. Wild Well leads with more than 40 years of experience in conventional and subsea well control, pre-event planning, engineering work and emergency response training and drills.
Along with dedicated subsea containment equipment, capping stacks and other support equipment, such as specialized debris clearing equipment and critical dispersant injection equipment, Wild Well's highly qualified emergency response well control personnel and well control/subsea engineering personnel deliver innovative solutions in a timely manner.
Wild Well's current WellCONTAINED™ inventory is staged in a ready-to-deploy state in both Aberdeen and Singapore. The equipment at each location includes full subsea well intervention systems, including a subsea capping stack, debris removal shears, hardware kits for the subsea application of dispersant and inhibition fluids and other ancillary equipment.
Wild Well is the global leader in the provision of specialized well control services – providing emergency response services, special services, engineering services and training – onshore, offshore and in deep water.
Speedcast International Limited (ASX: SDA), the world’s most trusted provider of highly reliable, fully managed, remote communication and IT solutions, announced it has secured four new contracts for professional services with oil and gas operators in the North Sea and Asia-Pacific region.
“Our ability to match the correct personnel to the job, as well as the depth of expertise and flexibility we provide our customers, is key to our professional services model,” said Keith Johnson, EVP Energy, Speedcast. “Embedding a Speedcast employee on-site at a customer location further strengthens our relationship and enables our clients to focus on their core business rather than their telecommunications networks. Professional services is an area where we are adding resources because of the increasing interest from our customers for a partner that can provide a full range of products and services, not just connectivity.”
In the North Sea, Speedcast will provide engineering and systems integration support through the testing and commissioning of various equipment including public address and general alarm (PA/GA) systems, closed-circuit television (CCTV), ultra high frequency (UHF) and very high frequency(VHF) radios, Global Maritime Distress and Safety System (GMDSS), and radar and aeronautical navigation beacons during the final part of a shipyard fit-out phase before providing ongoing support during the critical period from sail-away to first oil. The team will then execute a full handover to the operator to complete the contract.
Additionally, Speedcast has expanded its professional services role with two major operators in the North Sea to complement and provide network support to the specialist teams who it already supports through radio operator, telecom technician and project/service delivery positions.
Finally, Speedcast will provide engineering resources to another large oil and gas operator to help commission the telecommunication services on a new platform in Malaysia.
Speedcast’s professional services group provides short- or long-term technical manpower and expertise on a dedicated, project- or part-time basis at customer sites or at one of Speedcast’s global points of presence. Past professional services projects include end-to-end management of client networks, license facilitation and operation and maintenance of existing, client-owned IT systems and telecom equipment.
About Speedcast International Limited
Speedcast International Ltd (ASX: SDA) is the world’s most trusted provider of highly reliable, fully managed, end-to-end remote communication and IT solutions. The company utilizes an extensive worldwide footprint of local support, infrastructure and coverage to design, integrate, secure and optimize networks tailored to customer needs. With differentiated technology, an intense customer focus and a strong safety culture, Speedcast serves more than 2,000 customers in over 140 countries via 39 teleports, including offshore rigs and cruise ships, 10,000+ maritime vessels and 4,500+ terrestrial sites. Speedcast supports mission-critical applications in industries such as maritime, oil and gas, enterprise, media, cruise and government.
Bosch Rexroth, a leading company in drive and control solutions, has developed a new ‘split hoist‘ heave compensation system. It combines active heave compensation (AHC) and passive heave compensation (PHC) elements with a sophisticated control system enabling AHC functionality to be added to new and existing hoisting installations. Using a modular and mobile design, the new split hoist system is especially interesting for use with existing multi-part reeved hoisting equipment.
The Split hoist system ready to be installed on the Oleg Strashnov
The new split hoist heave compensation system supports a much higher working load, while also improving system efficiency by as much as 80%. A passive in-line heave compensator, supports the load and passively compensates for some of the ship’s movement. The passive in-line system is hoisted and held by an existing winch or crane.
An actively controlled winch, typically mounted on the ship’s deck, then compensates for the remaining movement of the load. A motion reference unit measures movement of the vessel, and the system reacts to control the load’s position relative to the seabed. In this way, the system requires only 20% of power compared to conventional AHC systems.
The new system was developed and designed fully in-house by Bosch Rexroth, and a first prototype has been built. With the help of Seaway Heavy Lifting, who also showed interest in the concept, the protoype was tested in real life conditions.
“We had to overcome a number of technical and operational challenges for the split hoist system in the two and a half years from concept to construction,“ said Patrick Verbakel, Technical Sales Manager Offshore. “Numerous simulations and tests were carried out to confirm the prototype could achieve the expected performance, and to ensure it would comply with the required safety standards.“
In June 2017, further testing will be carried out, again with help of Seaway Heavy Lifting, for offshore deep water operation. While these operations have been simulated and thoroughly analyzed, real-life testing will provide proof of concept.
The crane vessel Oleg Strashnov will be fitted with the split hoist heave compensation system to test performance and collect data. The control system is designed to control load position down to 2000 m below sea level, based on vessel position and forces on the cables.
“It has been a very interesting and successful project,“ said Patrick Verbakel. “In addition to bringing a new solution to the market, we have also increased our know-how and experience in several areas, including passive compensation systems. We are certain that the clear benefits of the Bosch Rexroth split hoist system will appeal to customers with demands for lifting a wide range of applications, possibly even exceeding 1,000 metric tonnes.“
Bureau Veritas is pleased to announce a new collaboration agreement with leading global provider of environmental, health, safety, risk, and social consulting services, Environmental Resources Management (ERM).
Initially focussed on the North Sea Region, but applicable globally, this relationship will bolster business development for both companies, allowing them to pull on each other’s strengths and capabilities to offer their combined services within the oil and gas industry.
Commenting on the partnership, Paul Shrieve, Bureau Veritas Regional CEO North Sea Offshore Operations, said: “We are pleased to be joining forces with ERM who, like Bureau Veritas, offer strategic and innovative solutions to operational challenges across the North Sea and beyond.
"ERM is a leading sustainability consultancy that works across a diverse range of industries to help clients manage their environmental, health, safety, risk and social impacts. We believe that our combined experience and expertise will offer further solutions for the oil and gas market during this challenging time in the market place.”
Created in 1828, Bureau Veritas is a global leader in testing, inspection and certification (TIC), delivering high-quality services to help clients meet the growing challenges of quality, safety, environmental protection and social responsibility. The company employs around 69,000 people globally and over 100 in North Sea Offshore Operations, which are based in the UK and Norway.
ERM’s key clients include many of the world’s leading organisations. They operate from more than 160 offices in over 40 countries and territories, with offices in Scotland and Norway, which serve clients who operate in the North Sea. ERM holds a breadth of more than 40 years’ experience with a strong track record in delivering successful outcomes for their clients on complex and challenging projects.
Steve Matthews, ERM Managing Partner of Northern Europe, added: ‘‘We are delighted to have entered into this collaboration with Bureau Veritas. As global leaders in sustainability, we are pleased to be working with a business that maintains the same high standards as ERM and look forward to a mutually beneficial relationship working within the Oil & Gas client base.’’
ASTM International’s committee on ships and marine technology (F25) has approved the first standard for vessels designed to accommodate construction crews working on offshore projects. The new standard aims to address the wide range of quality and safety of such vessels.
“Developing offshore energy and putting new assets into service requires accommodating many construction workers in the hostile and remote ocean environment,” says ASTM International member Charles Rawson, a naval architect with the U.S. Coast Guard’s Office of Design and Engineering Standards. “We want to make sure that workers receive reasonable protection from the hazard-filled environment in which they labor.”
The standard will soon be published as: Guide for Design, Construction and Operation of Vessels Providing Accommodation Service to Offshore Installations (F3257).
The guide will help those who build and operate ships to communicate features about crew safety and environmental protection, according to Rawson. At the same time, regulatory bodies could use demonstrations of compliance to the standard as evidence that a vessel is appropriate for its intended use and fit for service.
Rawson invites ship designers, builders, and operators who use the new standard to contact the committee with suggestions for future revisions.
The Board of Seadrill Limited ("Seadrill") is pleased to announce the appointment of Anton Dibowitz as Chief Executive Officer with effect from 1st July 2017. Anton Dibowitz will succeed Per Wullf who will remain a Director of the company
Anton Dibowitz, currently Chief Commercial Officer and Executive Vice President, will be appointed Chief Executive Officer, effective 1st July 2017 following a succession planning process that was implemented during 2016.
Per Wullf will continue as CEO until the end of June. Mr. Wullf will continue as a Director of the company.
John Fredriksen, Chairman of the Board, said: "Anton has a strong industry track record and has taken roles of increasing responsibility during his 10 years at Seadrill, including the day to day business administration at Seadrill since 2016. We are confident that this succession plan provides Seadrill with the right combination of continuity and stability as the company works to complete its financial restructuring aimed at building a bridge to a recovery and achieving a sustainable capital structure.
With Per remaining as a Director, Seadrill will continue to benefit from his in-depth industry experience, fleet knowledge and strong relationships. I would personally like to thank Per for his outstanding contribution as CEO of Seadrill and look forward to continuing to work with him for the years to come."
Anton Dibowitz, CEO designate, said: "I am deeply honored that the Board has appointed me to succeed Per as Chief Executive Officer of Seadrill. We have a world class business with high quality people, a young and modern fleet and strong client relationships. There are short term challenges to overcome in Seadrill and the industry but I look forward to playing my part in returning Seadrill to growth, together with the great team we have working here."
Per Wullf, CEO and President of Seadrill said: "I am immensely proud of my time at Seadrill, first as Chief Operating Officer and for the past four years as Chief Executive Officer. After 37 years in this fascinating industry, I want to reduce my day to day work commitments and spend more time at home in Denmark. As Seadrill is approaching key milestones for the company's restructuring, the time is right to inform all stakeholders that I will not lead Seadrill in the company's next era and hand over to Anton, who will make an excellent CEO. I would like to thank everyone at Seadrill for their support, passion and tenacity over the years and I look forward to our continued journey together."
Rising Prominence of the Asia-Pacific Region as a Global Refining Center
Oil markets are rebalancing. PIRA expects that with the ongoing OPEC output cuts likely to be extended and strong demand growth, it is just a matter of time before it shows up in reported onshore stock declines. Asian refiners are likely to keep buying more barrels from the Atlantic Basin as the Brent-Dubai price spread will stay narrow. Asia’s oil demand growth will outpace incremental refinery runs, and net exports of key products are expected to stabilize over 2017-18. Asian refineries are getting larger and more sophisticated, helping them to be more competitive in a volatile and challenging refining environment.
Byproduct Gas Picks Up Steam, But Obstacles Persists
The market has given back some of last week’s gains as uncertainty over relative supply/demand tightness resurfaces with the foreseeable pick-up in inventory restocking. Among other factors, the seemingly inevitable shale oil renaissance in Texas and Oklahoma — and its subsequent impact on byproduct gas volumes — weighs heavily on market sentiment. Yet, some recent producer earnings calls may help ease concerns about a fast-approaching deluge of associated dry gas production growth in the region, at least in the immediate term. Producers in the region have been guiding towards relatively muted Y/Y gas growth in comparison to their oil targets, citing ongoing price, pipe, and processing issues — the resulting risk to byproduct gas production during the injection season may help alleviate fears of oversupply.
Egypt LNG Cargo Deferments Suggest Diminishing Role in Balancing the Global LNG Market
As quickly as it swept into the LNG market in mid-2015, Egypt appears to be preparing for an almost equally sudden exit by end-2018. Moreover, the sudden loss of Egypt as a key demand center will be amplified by how quickly it will build on the resumption of its LNG exports since mid-2016.
Appointment of Energy Minister Moves the Back of the French Curve
The recently elected French president, Emmanuel Macron, appears to confirm his commitment to the French energy transition. On May 17, Nicolas Hulot was appointed as the minister responsible for energy in the new government. Considered an environmentalist in favor of renewable energy, Hulot had been arguing earlier during the electoral campaign that EDF needs to re-align its strategy to the French energy transition, supporting the idea that nuclear’s share within the mix must be reduced. The markets have been quick to react to the news, with the back of the French curve moving up substantially.
Prices Slip in Shoulder, But Upside Factors Mount
Coal-fired generation fell seasonally in April, but with natural gas prices ~60% higher Y/Y, coal burn was up 14% Y/Y. Though U.S. coal prices have slipped over the last month on shoulder season demand, an upward revision to PIRA’s injection season natural gas price forecast and other factors point to higher PRB and ILB coal prices this summer.
U.S. Internals of Data Constructive
Overall commercial stocks built 4.3 million barrels this past week as crude oil stocks fell 1.8 million barrels, the four major product inventories drew 2.2 million barrels and all other products built by 8.2 million barrels, the majority of which was NGLs. Adjusted product demand was up 3.3%, 630 MB/D, over last year in the latest four weeks. Crude runs surged 360 MB/D this past week to 17.12 MMB/D, supported by strong refining margins.
Broad-Based World Industrial Turnaround Becoming More Evident
Global industrial production and trade activity slowed throughout 2015, but it began to stage a comeback last year. Recent country-level manufacturing data were mixed. But in PIRA’s judgment, positive readings far outweighed disappointing ones – the current global manufacturing turnaround, therefore, is expected to gather further strength and become more broad-based. A sharp strengthening in U.S. manufacturing output during April was particularly encouraging.
Propane Stocks Just Above Five-Year Lows for This Time of Year
Propane inventories increased last week by 580 MB, but the total propane inventory of 42.2 MMB is close to the five-year average low for this time of the year. The EIA reported that propane exports soared last week to 1.25 million barrels per day. This is contrary to the number of propane cargo cancellations reported. A source states that the cancelled cargoes were picked up at a discount and routed to build Asian inventories. PADD II inventories grew, PADD III inventories were unchanged, and PADD I inventories declined.
U.S. Ethanol Prices Rally
Ethanol reached an eight-month low Wednesday May 10, but rebounded later in the week. Manufacturing margins were sharply lower. The EPA sent the proposed biofuel requirements for 2018 and biomass-based diesel to the OMB for approval. D6 RIN prices rebounded. Kinder-Morgan redirected ethanol from its Argo, Illinois terminal. The harvest in to the South-Central region of Brazil got off to a slow start to the 2017/2018 season.
47 degrees Fahrenheit with a cold and steady rain greeted us Saturday at our first stop in northern Illinois, about an hour west of Chicago’s city limits. Our producer-friend, who farms on the border of DeKalb and Kane counties, said “not much to see around here” as we climbed into his pickup truck. No, there was not much to see, but there was plenty to talk about.
A Weaker U.S. Dollar Propels the Coal Market to a Considerable Rebound
Coal pricing rebounded notably last week, with front end CIF ARA forward prices in particular rebounding to levels not seen since the aftermath of Cyclone Debbie on an over $4.00/mt W/W increase. A weaker USD, largely in response to political turmoil in the U.S. was a driving force behind the strength in pricing this week. The release of Chinese energy data was a confirmation of PIRA’s reference case; strength on the demand side will continue for the time being, although a continuation in the recovery in domestic coal production will be a harbinger of weaker balances and prices for 2H17.
Stresses Low, Commodities Rebound
In general, financial stresses remain extremely low, though there was increased drama this past week. The S&P 500 managed to climb above and hold the 2,400 level, but then hit an air pocket, from which it tried to climb back. With that air pocket, the noted divergence between bank equity performance (higher) and a flatter yield curve, began to come back into better alignment, though the divergence remains. Commodities had a positive week, and energy outperformed. The dollar was particularly weak, down 2% on the week.
Japan Returning to Norms, Post-Holiday
Following the Golden Week holidays most of the S/D data reflected a return to more normal patterns. That means gasoline demand ebbed from holiday hyped levels and gasoil demand began to rebound. Runs continued to reflect increased maintenance. Crude oil stocks posted a 5.4 million barrels draw, while finished products built 1.6 million barrels. The weekly stock build rate remained about 32 MB/D, like the previous week.
U.S. Ethanol Inventories Build for the First Time in Three Weeks
Ethanol-blended gasoline manufacture soared last week, rising to a 40-week high 9,408 MB/D from 9,161 MB/D in the preceding week. Domestic ethanol production rose 21 MB/D to 1,027 MB/D as more plants came back on line following seasonal maintenance. Inventories built by 359 thousand barrels to 23.4 million barrels, up 2.3 million barrels (11.0%) from this time last year.
Storage Spreads are Not Building in Inherent Risks
Given low stocks across Europe, the biggest seasonal storage facility in the U.K. out of commission, and the biggest seasonal storage facility in Benelux experiencing operating issues, you’d expect some interesting storage spreads to start developing – particularly for Germany. These opportunities are not leaping out just yet despite the country’s key position. Looking at historical costs of capacity from the capacity trading platform PRISMA, in combination with forward gas pricing in Germany vs. Britain, an overwhelming reason to max out injections at the moment for peak winter withdrawals does not yet seem to exist as of yet. However, TTF is already being priced to be an important supply source for NBP in the peak cold months of December ’17 to February ’18 at 1Q’18 TTF-NBP spread of -€1.63/MWh.
U.S. Refiners’ RIN Costs down Year-on-Year; April RIN Generation Little Changed
Approximately 5.93 billion RINs were generated in the first four months of 2017, up from 5.89 billion over the comparable period in 2016. D6 RIN generation was up only 0.2% over that period, while D4 and D5 RINs were up 2.4% and 30.6%, respectively. Several public companies with large RIN expenditures over the past few years had a lighter burden in the first quarter of 2017 due to lower RIN prices, profitable trading, and/or the granting of a small refinery exemption for one or more of their facilities. In some cases, companies that have historically suffered large costs due to hefty RIN requirements experienced a net gain last quarter.
Global Equities Still Setting Record Highs
Many of the benchmark equity indices continue to set record highs. After doing so, the U.S. market hit a bit of a downdraft, but then began to recover. Consumer staples, utilities, and energy performed the best on the week, while retail was the clear laggard. International indices outperformed the U.S, with Europe, emerging Asia, China, and Japan doing the best. A significant retrenchment in Brazil’s equity market led to a drop in Latin American performance.
Asian Oil Demand: Temporary Fallback in Demand Growth
Our snapshot of Asian oil demand growth shows a slowdown, which is viewed as temporary and driven by a drop in growth of Chinese apparent demand. PIRA's update of major country Asian product demand indicates that year-on-year growth slowed to 210 MB/D, vs. 740 MB/D in our April snapshot. Reacceleration is expected May-July, with demand growth currently forecast to push 1 MMB/D by mid-summer.
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.
The Yakaar-1 exploration well was drilled to a total depth of approximately 4,700 meters in nearly 2,550 meters of water in the Cayar Offshore Profond block by the Atwood Achiever drillship.
Bernard Looney, BP Upsteam chief executive officer, commented “Yakaar-1 follows the earlier exploration success that led to the Tortue discovery and further confirms our belief that offshore Senegal and Mauritania is a world-class hydrocarbon basin. This discovery marks an important further step in building BP’s new business in Mauritania and Senegal. We look forward to results from the additional exploration wells planned for 2017.”
The Yakaar discovery, coupled with the Teranga discovery, creates the foundation for a further LNG hub in the basin.
BP and Kosmos will be drill stem testing the Tortue discovery in mid-2017 and will now drill 3 additional exploration wells over the next 12 months offshore of Senegal and Mauritania.
- BP in April agreed to deepen its investment in Senegal by acquiring the full 30% minority participating interests that Timis Corporation held in the Saint-Louis Profond and Cayar Profond blocks offshore Senegal. This is subject to government approval and follows BP’s entry into Mauritania and Senegal through an agreement with Kosmos Energy, announced in December 2016.
- The Saint-Louis Offshore Profond block includes the Senegalese sector of the cross border Tortue (Ahmeyim-Guembuel) field and significant future prospectivity. Tortue is estimated to contain more than 15 trillion cubic feet of discovered gas resources.
- On completion of the agreements, participating interests in the Senegal blocks will be similar to the aligned partnership in Mauritania, with BP holding participating and effective working interests of close to 60%, Kosmos close to 30% and Société des Pétroles du Sénégal (Petrosen) 10%.
- Formerly known as Teranga West, Yakaar-1 is in the Cayar Offshore Profond block roughly 95 kilometres northwest of Dakar. In May of 2016, Kosmos announced another significant gas discovery approximately 40 kilometers to the east at the Teranga-1 exploration well.
- Kosmos will provide additional information about the Yakaar-1 discovery during its first quarter 2017 conference call on Monday, May 8, 2017 at 11:00 a.m. EDT. The call will be available via telephone and webcast.
Oceaneering International, Inc. (“Oceaneering”) (NYSE:OII) announces that it has been awarded a contract to provide services and products to support the design, fabrication and installation of ancillary flowline hardware for the Appomattox development in the Mississippi Canyon Area of the U.S. Gulf of Mexico for Shell Offshore Inc. (“Shell”).
Image credit: Shell
The scope of work for ancillary flowline hardware will include the procurement and installation of pre-lay and post-lay crossing mattresses, flowline jumper fabrication and installation, manifold installation, as well as the design, procurement, fabrication and installation of subsea buoyancy for flowline thermal expansion.
Oceaneering’s state-of-the-art, U.S. flagged vessel, the Ocean Evolution, scheduled for delivery in the latter part of 2017, is expected to be used to perform the offshore installation services in various phases commencing late 2017 and ending sometime in 2019. Oceaneering is also expected to provide project management, engineering, remotely operated vehicle services, survey services, subsea tooling and global data solution services to Shell as needed for this work.
Roderick A. Larson, President and Chief Executive Officer of Oceaneering, said, “We are extremely pleased to expand our scope of supply, in addition to previously securing the control umbilicals contract, on this Shell deepwater Gulf of Mexico development. This project demonstrates Oceaneering’s capabilities to leverage our comprehensive portfolio of offshore services and products to produce safe, reliable and cost effective solutions that meet all of a customer’s requirements.”
Oceaneering is a global provider of engineered services and products, primarily to the offshore oil and gas industry, with a focus on deepwater applications. Through the use of its applied technology expertise, Oceaneering also serves the defense, entertainment and aerospace industries.
Bollinger Shipyards has announced the arrival of the drydock “Mrs. Jody” with a total lifting capacity of 4,000 tons at Bollinger Algiers.
Drydock “Mrs. Jody” arrives at Bollinger Algiers.
The announcement was made by Bollinger C.E.O. & President Ben Bordelon, “We are very pleased to announce the arrival of the “Mrs. Jody” at Bollinger Algiers. This drydock will position us well in the diverse customer markets that we serve, and will further enhance our position in the market with lifting capacity needed by our customers.”
The “Mrs. Jody” drydock measures 198-ft. x 76-ft. between the wing walls and has lifting capacity of 4,000 tons. Bollinger has two (2) commercial dry-docks located in Algiers with a combined lifting capacity of 5,800 tons.
Bollinger Algiers, a full service shipyard with an on-site machine shop, is located on the Mississippi River across from downtown New Orleans and provides service to both the inland and offshore marine transportation sectors.