ExxonMobil Annouces New Oil Discovery Offshore Guyana

6exxonmobil redExxonMobil Corporation has announced positive results on the Snoek well offshore Guyana, confirming a new discovery on the Stabroek Block. Drilling targeted similar aged reservoirs as encountered in previous discoveries at Liza and Payara.

“The latest discovery at Snoek demonstrates the continued success we have achieved in this technically complex play, which is just part of the significant exploration province offshore Guyana,” said Steve Greenlee, president of ExxonMobil Exploration Company.

ExxonMobil affiliate Esso Exploration and Production Guyana Ltd. commenced drilling of the Snoek well on Feb. 22, 2017 and encountered 82 feet (25 meters) of high-quality, oil-bearing sandstone reservoirs. The well was safely drilled to 16,978 feet (5,175 meters) in 5,128 feet (1,563 meters) of water on March 18. The Snoek well is located in the southern portion of the Stabroek Block, approximately 5 miles (9 km) to the southeast of the 2015 Liza-1 discovery.

Following completion of the Snoek well, the Stena Carron drillship has moved back to the Liza area to drill the Liza-4 well.

“As we continue to evaluate the full potential of the broader Stabroek Block, we are also taking the necessary steps to ensure the safe, cost-efficient and responsible development of this world-class resource, which can provide long-term, sustainable benefits to the people of Guyana,” said Greenlee.

The Stabroek Block is 6.6 million acres (26,800 square kilometers). Esso Exploration and Production Guyana Limited is operator and holds 45 percent interest in the Stabroek Block. Hess Guyana Exploration Ltd. holds 30 percent interest and CNOOC Nexen Petroleum Guyana Limited holds 25 percent interest.

Active Heave Compensated (AHC) Drilling Platform from MacArtney

Newly launched multipurpose drill ship FREJA integrates a high-performance active heave compensated drilling platform manufactured by MacArtney. The drilling setup on board the vessel has been designed to provide enhanced drilling conditions even in rough seas.

7MacArtneyMacArtney active heave compensated drilling platforms on board multipurpose drill ship

Keeping drilling rig quiet in three-meter high waves

A customized, motion-compensated working platform of ten times seven meters is situated amidships. This means that the working deck remains stationary while the vessel follows the movements of the waves. Besides, the platform design includes a roll function compensating for the vessel rolls by +/- 7 degrees. The active heave compensation is achieved by four fast reacting, high performance winches mounted on the corner pillars supporting the entire platform. The winches are controlled by an integrated control system, which ensures that the complete platform is synchronized with the vessel dynamic positioning control system. This enables drilling methods which ensure higher sample quality than that usually achieved carrying out traditional drill ship procedures. This way, the operation remains less dependent on the weather conditions.

Contents of the order

In addition to project management, mechanical design and engineering, as well as installation and commissioning, the scope of supply of this MacArtney turnkey solution includes the 100 t AHC drilling platform, four winches, the integrated control system and a spare package comprising among others three spare winches. The main purpose of this system is within offshore wind projects.

“We are extremely happy to be part of this project and in a position to supply such a leading-edge system solution enhancing our customer’s drilling methods to the benefit of all, states Søren Hartvigsen, Technical Director of MacArtney Manufacturing.”

Trusted solutions

MacArtney winch systems are some of the most advanced solutions available and have been trusted for decades by customers worldwide. Our constant focus on improving existing designs and developing new solutions ensures provision of high quality, dependable winch systems for all needs. We design and supply complete solutions for handling ROVs, towed systems, corers, ploughs, diving systems, and a wide range of other applications for off-shore and underwater use. Our total packages include integrated dynamic cable systems, slip rings, winches, sheaves, launch and recovery systems, and active heave compensation systems. All MacArtney systems are designed, engineered, tested and certified to required customer standards.

Fugro Boosts Specialist Oil and Gas Services in Guyana

Fugro is to boost its marine site characterization services for the oil and gas industry in the Republic of Guyana with a new strategic alliance with Ground Structures Engineering Consultants Ltd. The new relationship will facilitate training for Guyanese citizens and support local economic development.

The professionals employed by Ground Structures are experienced in conventional geotechnical engineering and their services include site reconnaissance and geologic mapping, subsurface exploration, data analysis and engineering design, specification review and on-site monitoring. Principal consulting fields include environmental management, geotechnical engineering and groundwater hydrology and the company’s expertise is complemented by a full-service soil laboratory.

8Fugro GuyanaCharles Ceres from Ground Structures Engineering Consultants Ltd.(LEFT) with Brian Hottman from Fugro

By working with agencies in the Republic of Guyana, Fugro fulfils its commitment to support local economic development and, through relationships with local companies such as Ground Structures, facilitates training and maximises job opportunities for Guyanese citizens. As part of this new working relationship, Fugro will provide onsite training at its state-of-the-art accredited laboratory in Houston, Texas, USA to cross-train soil technicians to meet industry standards.

Fugro will also provide essential offshore experience to Ground Structures’ certified soil technicians who will support a geotechnical campaign recently awarded to Fugro by Esso Exploration and Production, Guyana Limited. The marine site characterisation project is scheduled to begin in April 2017 and the Ground Structures technicians will work alongside Fugro personnel onboard its deepwater geotechnical vessel, Fugro Explorer.

INTECSEA Launches Next Generation Floater

9INTECSEALow-motion technology transforms economics of ultra-deepwater fields

INTECSEA (WorleyParsons Group), an independent provider of engineering and project management services for full lifecycle asset management, has launched a range of low-motion (LM) floaters – the flagship LM-FPSO, the LM-FLNG and the LM-SEMI. Suitable for all water depths, the LM-FPSO transforms the economics of harsh, remote offshore fields with savings of $500m – $1.2bn (USD) per project.

The riser-friendly LM-FPSO is capable of operating from ultra-deep (3,000m+) to shallow water fields. The design maintains all the advantages of conventional FPSOs while enabling the use of more robust and cost-effective riser solutions, such as steel catenary risers (SCRs) and top tensioned risers (TTRs). Crucially, the LM-FPSO does not need a turret or swivel, which offers major additional savings versus traditional solutions.

Comprised of field-proven components, the reliable LM technology significantly improves platform habitation and helicopter operation while maintaining quayside integration. The technology’s improved stability also makes the floater less sensitive to the topside vertical center of gravity and weight changes resulting in reduced risk to the project schedule and cost during execution.

Geeta Thakorlal, president, INTECSEA, says: “With the easy oil long gone, operators are increasingly turning to more remote, hostile and often deepwater environments. However, the challenge is the financial viability of these fields. The LM technology is incredibly exciting because it represents a major step forward in improving the economics of these offshore developments.

“The combination of established, field-proven components and motion response verified by model testing, along with our technical expertise and industry track-record, has proved the LM technology as a reliable and cost-effective solution for all water depths and environments.”

The LM-FPSO’s superior motion response enables the application of large diameter SCRs in wet-tree applications. It also supports the hosting of TTRs in dry-tree applications and well drilling and completions from the floater, which is currently not feasible on conventional FPSOs due to their inherently high motion response.

The LM-FPSO is currently undergoing certification by DNV and was recently awarded the 2017 E&P Special Meritorious Award for Engineering Innovation in the floating systems and rigs category.

INTECSEA will be exhibiting and presenting a paper on the LM suite of technologies at OTC in Houston from the 1st – 4th of May 2017.

iSURVEY Awarded Major Contract with Maersk Oil Danish Business Unit

Following an eight-year relationship with Maersk Oil, iSURVEY has been awarded a survey and positioning contract with the international oil and gas company.

Commencing in March 2017, the four-year contract, which has the option to extend by one 12-month period, sees iSURVEY named as the nominated first caller contractor for survey and positioning services.

iSURVEY will specifically support Maersk Oil Danish Business Unit with rig move operations in the Danish sector of the North Sea. The contract may also involve the mobilisation and demobilisation of a rig outside the Danish Sector, as well as potential rig positioning services over a subsea well.

10iSurvey Andrew McMurtrieAndrew McMurtrie, managing director of iSURVEY

Andrew McMurtrie, managing director of iSURVEY Offshore Limited said: “Securing this contract is of significant importance to iSURVEY, returning us to the position of preferred supplier as the nominated first caller contract for the next four years.

“Whilst activity will depend on the level of drilling taking place, Maersk Oil Danish Business Unit utilise a number of jack-up rigs in the Danish sector so we expect this to be a productive contract.

“We have successfully supported Maersk Oil Danish Business Unit for a number of years now and are delighted to be able to continue working with their team for the next four years. This contract will further strengthen our relationship.”

iSURVEY will be showcasing its service offering and expertise to the industry during Ocean Business, the leading hands-on ocean technology exhibition and training forum from 4-6 April in Southampton, on stand K10.

iSURVEY Group is a leading provider of survey and positioning services to the global oil and gas, telecommunications and offshore renewable energy sectors. The Group operates from its bases in Aberdeen, Oslo and Singapore.

Pemex Delves Deep into UK Subsea Sector

Senior figures from Mexico’s national oil company, Pemex, have been discovering the secrets of the UK subsea sector’s success and how it has revolutionized the way in which hydrocarbons have been extracted from beneath the seabed during a fact-finding visit to Aberdeen.

Organized in partnership with the Department of International Trade (DIT), the five-day subsea learning event included site visits to some of the sector’s most innovative companies, including GE Oil & Gas, Aker Solutions, Hydrasun, Wood Group, BP and ROVOP. The delegation experienced what it’s like to operate a remotely operated vehicle (ROV), learnt about diving operations and toured a number of subsea manufacturing plants.

11Pemex 023The mission provided a broad but in-depth overview of the sector, covering how technology has evolved over the years to meet the demands of exploration and production companies as they move to harsher and more complex environments in order to recover the world’s oil and gas reserves.

They also gained an insight into the subsea industry from a UK perspective and as a global sector, looking at how subsea fields are developed, and how subsea systems are designed, installed, operated and decommissioned around the world.

Neil Gordon, chief executive of Subsea UK, said: “Welcoming the Pemex team to Aberdeen to see first-hand some of the ground-breaking technologies and innovations that created the subsea sector center of excellence was an important development opportunity for the sector.

“The Energy Reform in 2013 saw Mexico’s oil and gas industry undergo some big changes as it opened its doors to international companies for the first time. This fact-finding mission has allowed us to showcase the UK’s subsea industry and demonstrate why the UK leads the way around the world in subsea technology and expertise. “

Each year, Subsea UK works with DIT to organize trade missions to Mexico in a bid to increase business and trade opportunities in this very promising energy hub.

“Mexico has the potential to be one of the fastest-growing oil and gas provinces in the world and this visit to Aberdeen builds on the already close ties between our two countries. With Mexico’s energy ambitions and the UK’s wealth of experience, there are huge opportunities for collaboration. We hope the delegates found the visits to the various companies involved to be highly valuable,” added Mr. Gordon.

Subsea UK has 300 members and is a self-sustaining body that champions the country’s subsea supply chain. It acts as a focal point to promote the sector, maximize its opportunities and provide a national forum for collaboration, diversification and technology development.

Shell CEO Ben van Beurden to Speak at SPE Offshore Europe 2017

Royal Dutch Shell CEO Ben van Beurden is to speak at the opening plenary session at SPE Offshore Europe 2017 which is being held in Aberdeen from 5-8 September 2017.

12Ben van BeurdenRoyal Dutch Shell CEO Ben van Beurden

Mr .van Beurden will address several hundred oil and gas industry professionals who will attend the plenary session on the first day of Europe’s foremost exploration and production (E&P) technical conference and exhibition.

Conference chair Catherine MacGregor, president, Reservoir Characterization Group, Schlumberger welcomed Mr. van Beurden’s participation: “It will be an honour to welcome Ben van Beurden to SPE Offshore Europe. His insights, at a time of change and reinvention, and hopefully as confidence begins to return to the North Sea, will be of great interest to our delegates.”

Ben van Beurden was appointed chief executive officer of Royal Dutch Shell plc in January 2014. He joined Shell in 1983, after graduating with a Master’s Degree in Chemical Engineering from Delft University of Technology in the Netherlands. Mr van Beurden’s career in Shell spans both upstream and downstream activities. He has held a number of operational and commercial roles, including 10 years in the LNG business, and a variety of positions in downstream.

In 2005, he became vice president, manufacturing excellence in Houston, USA, before he was appointed executive vice president, chemicals, based in London. During his tenure in the role, Mr van Beurden was appointed to the boards of a number of leading industry associations including the International Council of Chemicals Associations and the European Chemical Industry Council. From January to September 2013, he was downstream director and had regional responsibility for Europe and Turkey. He has been a member of the executive committee since January 2013.

Also speaking at the opening plenary will be BP group chief executive, Bob Dudley. Further senior level plenary speakers will be announced in due course.

Under the theme ‘Embracing New Realities: Reinventing our Industry’, SPE Offshore Europe 2017 will offer more than 65 technical papers and 11 keynote panel sessions combined with business breakfasts and topical lunches. A ‘new for 2017’ Decommissioning Zone will feature a themed exhibition and conference space. Also free-to-attend, the zone will include over 40 decommissioning technology and service providers in the exhibition as well as a conference programme organised in association with key industry associations including Decom North Sea, ITF, SUT and IMechE.

SPE Offshore Europe has been held biennially in Aberdeen since 1973. It is the largest E&P conference and exhibition outside North America.

Click here for further information.

GE Oil & Gas Opens Facility for Deep-Water Offshore Projects in Ghana

13gelogo1GE Oil & Gas opened a new facility in Takoradi Port, Ghana, expanding its global footprint and supporting local investment. The company committed to deliver more than 45,000 training hours for Ghanaian personnel over the next five years, as it seeks to build a world-class team locally.

The facility, which will be the primary service center for deep-water offshore projects in Ghana, has a 1,600 square meters indoor test area with capability for testing three subsea trees (XTs) simultaneously, and 4,000 square meters of indoor and outdoor storage. This new infrastructure is already playing a critical role in supporting the installation for Eni’s Offshore Cape Three Points (OCTP) project - for which GE Oil & Gas is supplying subsea and turbomachinery equipment - and will support the local community by helping to provide direct employment opportunities. It will also provide welcome support for the local supply chain, and for small and medium-sized enterprises.

Lorenzo Simonelli, president & CEO of GE Oil & Gas, attended the opening ceremony with customers, suppliers and local Government representatives. “The opening of the GE Takoradi facility demonstrates our commitment to developing local partnerships and capacity building to deliver effective and efficient solutions for our customers,” said Simonelli. “Localization supports growth in the communities in which we work, while increasing our productivity. As a global company, GE is uniquely-placed to have a well-rounded economic impact on the regions where we operate. We are committed to partnering with Ghana to help support building critical skills and developing infrastructure for the country’s future growth.”

Along with committing to delivering a comprehensive training program for the local workforce, GE Oil & Gas has recruited more than 30 Ghanaian staff to work at the new facility, including two fully-trained field service engineers who are now working offshore to support the installation phase for the OCTP project.

GE Oil & Gas partnered with Ghana National Petroleum Corporation (GNPC) and Ashesi University College in a two-phased approach to local capacity building, including education and skills development, and a small to medium enterprise (SME) development program. The partnership is helping to develop the next and future generations of the oil and gas workforce, providing them with practical learning opportunities and access to technical expertise, locally.

Ado Oseragbaje, president and CEO Sub-Saharan Africa, GE Oil & Gas, said: “Ghana has decades of development potential and we are excited to provide support to a project that will act as an important energy source for the country for many years with minimal environmental impact, while also driving the development of local infrastructure and capacity-building. We have the strength and scope to be able to stay close to our customers, work where they work, and invest in the training and facilities required to reduce complexity, provide faster turnaround of equipment deliveries, support our partners and build a solid talent pipeline in-country.”

The U.S. Ambassador to Ghana, Ambassador Robert Jackson, was present at the inauguration and commended GE for making such a sizable investment and setting a great example for American companies in the region. “GE is known for its leadership in technology and innovation,” said Ambassador Jackson. “Here in Ghana, GE has partnered with our USAID-funded Supply Chain Development project to build the capacity of local Small and Medium businesses. That’s not only a commitment to Ghana, it’s a commitment to transitioning from donor funding toward private sector-led growth.”

GE was awarded an $850 million order for the supply of equipment to the OCTP block in 2015. This order incorporates both GE Oil & Gas turbomachinery and subsea elements and GE Power Conversion electric motors, an example of the ‘GE Store’ at work – drawing technologies and expertise from across the company.

Global Maritime Celebrates 10-Year Milestone with Burullus Gas Company on WDDM Concession

Global Maritime, a provider of marine warranty, dynamic positioning and engineering services to the offshore sector, is celebrating ten years of providing marine warranty survey (MWS) services to the West Delta Deep Marine Concession (WDDM), offshore Egypt. Burullus Gas Company, a joint operating company of Egyptian General Petroleum Corporation (EGPC), Shell and PICL (Egypt), operates the concession.

14GlobalMaritime The installation of a suction pile a manifold and a Subsea Distribution Assembly on the WDDM projectThe installation of a suction pile, a manifold and a Subsea Distribution Assembly on the WDDM project

Mahmoud Taymour, Burullus Projects Director, continued: “Global Maritime has played a key role in the successful delivery of the West Delta Deep Marine Offshore Development Projects over the last 10 years. Burullus safely delivered several fast-track offshore and subsea projects where Global Maritime provided professional engineering and marine resources expertise, including installation engineering and analysis review, load-out, sea-fastening and offshore construction.”

His words were backed up by David Drew, Regional Manager for Global Maritime in the Middle East: “There have been no more high-profile and complex offshore projects in the Mediterranean over the last decade than the WDDM concession and we are delighted to have been involved in so many phases. With most phases of the project having been delivered ahead of schedule and under budget, Global Maritime is rightly proud of the role it has played in supporting Burullus and expanding the oil & gas industry in Egypt.”

The West Delta Deep Marine (WDDM) concession, located 90 kilometers from the Nile Delta shoreline in the Mediterranean Sea, is currently in production phase. The project has undergone ten different phases over the last 13 years and provides vital gas supplies to the Egyptian domestic market.

Since 2006, when Global Maritime won the initial tender for MWS services for the project, Global Maritime has been involved with all offshore stages of the field’s development. Specific phases that Global Maritime has provided MWS services to include Phase 4 which involved the tie-back of seven subsea wells; the Sequoia Phase 6 project which brought three additional wells onstream; Phase 7 which involved the installation of a 68 kilometer long offshore pipeline; Phase 8a which involved the tie-back of an additional nine subsea wells; Phase 8b which involved a further eight additional wells; and Phase 9a, a project involving the development of nine wells.

Global Maritime’s track record with Burullus has also seen the company secure a number of other contracts in Egypt, including with Belayim Petroleum Company (Petrobel), an Eni and EGPC joint venture; and South Abu Zenima Petroleum Company (Petrozenima), a joint venture between EGPC and National Petroleum Company (NPC). Global Maritime’s DP and rig move services in Egypt have also been expanded since its Cairo office opened.

Energy Market Recap for the Week Ending April 3, 2017

15PIRALogoGlobal Flow Deficit and Positioning to Lift Oil Prices

Global economy is in a synchronized expansion, which is bullish for oil demand. Oil demand growth continues to be much faster than supply increases, creating a large flow deficit in 2017 which is drawing down surplus stocks. 2018 will require sizable increases in both OPEC and U.S. shale crude production to keep inventories from falling to inordinately low levels. Recent declines in financial net length render positioning much more supportive to prices. Refinery runs and margins will stay strong through the summer. Gasoline cracks will be healthy with declining inventory coverage and will outperform slowly recovering distillate cracks. OPEC cuts and U.S. shale growth drive Brent-Dubai crude differentials narrower, increasing Atlantic Basin sweet crude arbitrage movements to Asia.

Competition for Storage Heats Up

Tepid supply recovery and the possible need of price-driven demand destruction is clearly playing a role in the gas futures price recovery underway. From a regional cash price perspective, the possibility that a significant inventory deficit will emerge in advance of the heating season suggests the physical market will align with this bullish sentiment.

Lower Hydro Offsets Nuclear Recovery

Spring will see an unusual turnaround in nuclear availability patterns, as German nuclear returns to full availability by June, while French availability will move to multi-years highs in May-June. However, hydro generation in March was down by 14% year-on-year across Western Europe, with a steeper contraction factored in our balances for 2Q17 (-18% year-on-year in April, -16% on average in 2Q17). Within Western Europe, Spanish and Italian prices offer the most upside for the upcoming months. A recent study by the German TSOs projects reserve capacity margins in the next three winters will shrink. This conclusion is quite bullish, considering the TSOs assume coal capacity to stay flat, while more coal closures have been already announced since the study was published. Germany is set to rely on imports during the winter peak.

Trump Puts into Motion Rollback of Obama Climate Policies

President Trump’s Executive Order directs federal agencies to take steps to reverse Obama climate policy efforts. Not directly addressed were EPA’s GHG Endangerment Finding, the Paris Agreement, and the EPA’s waiver allowing California to set GHG auto standards. Repealing the Clean Power Plan and the NSPS for new fossil fuel plants will require time-consuming notice and comment rulemaking - with the difficult choice ahead of how (and whether) to replace them. The Order’s focus on reviewing oil & gas fracking regulations was less expected, though PIRA believes the impacts will be limited. Controversial Obama regulations of criteria air pollutants (ozone, PM) – presumably closer to the Administration’s view of EPA’s core mission - were not explicitly called out for review. Rolling back other climate policies (Social Cost of Carbon, GHG NEPA reviews, coal leasing moratorium) is more easily done with the stroke of a pen.

Cyclone Lifts Coal Market Bearish Pricing Awaits

While Cyclone Debbie disrupting coking coal output in Queensland has grabbed headlines, the thermal coal market has been highlighted by the removal of several key upside risks over the past month. Warm weather in Europe and a more flexible approach in enforcing coal production capacity cuts in China have taken away some upside pricing potential. However, weather-related disruptions to supply in Australia and Indonesia, coupled with strength in Asian coal demand should give FOB Newcastle prices some upward momentum. In the Atlantic, weak European coal demand will continue to be a drag on CIF ARA.

Advantage Corn

That $100/acre futures revenue advantage enjoyed by those intending to plant soybeans instead of corn a short time ago when the SX7/CZ7 price ratio was 2.7:1 totally evaporated after Friday’s Plantings report which suggested a record 89.5 million soybean acres will be planted by U.S. farmers in 2017. At the closing 2.45:1 ratio Friday, the advantage actually swings towards corn a bit. In the end, it’s all about the weather over the next month. If it dries out, corn plantings will jump to 91.5-92 million in our opinion, while soybean acreage could fall to 88 or so million. If it stays wet, the pendulum will swing back to soybeans, despite the ratio, as they can be planted later than corn.

U.S. Ethanol Prices and Margins Climb

U.S. Ethanol Prices and Margins Advance during March. RIN values shot up after it was clear that the higher biofuels requirements for 2017 would not be rolled back. Hydrous ethanol values are becoming more competitive in Brazil. European ethanol prices tumbled during March.

U.S., Euro Area, and Japan All Appear to Be Doing Fine

This was a busy week for economic growth and inflation data releases in major developed economies. In the U.S., inflation data for February were about as expected, and did not point to a strengthening in the underlying price pressure. Consumer spending was disappointing in January and February, but other data indicated that the underlying pace of growth remains solid. Inflation slowed unexpectedly in the euro area. Japan’s economic momentum is shifting to a higher gear, according to industrial production data.

Propane Supply Pulled from Midwest to USGC

Propane exports out of the USGC remain strong despite alarmingly low inventories. In order to account for the large volumes coming out of PADD III, PIRA believes that PADD II production is flowing to the USGC to keep inventories afloat. While PADD III stocks moved down by 13 MB last week, PADD II stocks fell materially by 920 MB. In the total U.S., high exports and a slight hike in demand both contributed to the large 1.5 MMB draw in inventories. U.S. stocks ended the week 20.0 MMB below 2016 levels and were 42.8 MMB.

U.S. Stock Excess to Last Year Continues to Narrow

Overall commercial stocks drew 3.9 million barrels this past week with the entire draw in products led by another week of strong withdrawals from gasoline and distillate inventory. With crude runs ramping up 425 MB/D to 16.2 MMB/D, crude stocks were up just modestly even though imports were elevated. Now that crude runs are rising, supported by refiners returning from maintenance and strong margins, PIRA sees substantial crude stock declines ahead with next week’s EIA data showing a 530 MB/D crude inventory decline.

Warmth Creates Breathing Room for Next Winter

Continued warm weather that started in mid-February sends European demand into a tailspin with demand across major gas consuming nations falling by over 50% from mid-February to late-March. Adding to demand woes, the warm weather also brought increased renewable production. Wind production has been especially prominent with combined output from France, U.K., Germany, and Italy up nearly 10.8 GW year-on-year. The production masks underlying vulnerabilities due to still low hydro reservoirs and nuclear output. With demand hitting the breaks this winter far faster than normal, not only has a storage crisis been averted this winter, but storage facilities have also been able to shift to injection mode up to 3 weeks earlier than in some recent years. The gas savings (lower draws) from the unusually warm weather across Europe has been upwards of 6.5 BCM in the last 6 weeks. PIRA now sees gas stocks entering November at just below the 5 year avg. – 12% higher than our forecast last month.

Precipitous Declines

Columbia basin precipitation remained much above normal in March boosting Apr-Sep runoff projections to over 120% of normal. Strong project inflows boosted March generation, prompting another sharp (~$10/MWh) drop in Mid-Columbia pricing. NP15 saw a similar decline. Smaller price reductions occurred at SP15 (-$6) and Palo Verde (-$1) where hydro plays a smaller role. While developments in the past month are unambiguously negative for Mid-Columbia prices, at southwest hubs, incremental inflows from the northwest will be largely offset by stronger gas prices. Mid-Columbia prices have been revised down through September, but southwest markets are little changed. Note that a new table has been included summarizing CAISO wind and solar curtailment data.

Stockpiles Rationalized in Jan., But Rise Over Balance of Winter

The EIA reported that U.S. coal stockpiles rationalized in January, falling to 157.4 MMst. PIRA’s models indicate that stockpiles rose over February and March as weather was generally warmer-than-normal and gas prices have at times traded under $3/MMBtu.

2016 EU ETS Emissions Declines Driven by Grid-Connected Power

European ETS verified emissions data for 2016 will be released April 3rd, one of the few official data points each year to assess EUA demand and market balances. PIRA expects 2016 EU ETS emissions (excluding aviation) will be down, driven by lower grid-connected power emissions across Europe, with particularly large losses in the U.K. and Spain. Increases in non-grid combustion emissions, especially in Germany and Poland, could moderate the overall drop, while expected changes to industrial emissions are relatively minor. PIRA does not expect major EU Carbon Allowance price gains in 2017, and this release could provide another bearish price indicator. However, data showing more market oversupply could also focus the attention of policymakers (in the midst of coordinating post-2020 reform efforts) on the need for additional supply-side market changes, offering EUA prices longer-term support.

U.S. Ethanol Prices and Margins Climb

U.S. ethanol production rose 10 MB/D to 1,054 MB/D the week ending March 24, equaling the third highest rate ever. Stocks increased for the first time in a month, building by 662 thousand barrels to 23.3 million barrels. PADD II stocks climbed to another record high 8.6 million barrels. Ethanol-blended gasoline manufacture dropped slightly to 9,023 MB/D from a 12-week high 9,075 MB/D in the preceding week.

Global Equities Shift Momentum Back to the U.S.

Following a couple of weeks of rotation out of domestic equities into international sectors, the momentum shifted back. The U.S. tracking indices were broadly higher, with growth outperforming defensive indices. The strongest performers were technology, retail, and banking. Energy posted a solid 2% gain on the week and performed more than twice as strong as the overall market. Internationally, Latin America did the best, along with Europe. Emerging markets, emerging Asia, Japan, and China eased.

Japanese Higher Demand Draws Product Stocks to New Low

Japanese crude runs continued to ease on the week in line with our maintenance schedules, while crude imports remained exceedingly low. Crude stocks drew 2.9 million barrels, but finished product stocks also drew 1.4 million barrels on higher aggregate demand. Finished products stocks moved to a new low. Kerosene demand rose moderately against seasonal tendencies, in an end-of-season effort to clean out inventories. Stocks drew at a rate of 79 MB/D. Without the yield rise and higher refinery output, the stock draw rate would have been even greater.

Weather Buoys Exports, But Upside Still Limited

The relatively restrained growth that took place during the fourth quarter belies the strength we see ahead for Canadian production. Yet, on balance, we are becoming increasingly less constructive on marketing opportunities for the upcoming injection season. Thanks to exaggerated heating demand gains in the U.S. Northeast and Midwest, net Canadian exports will be higher this month compared to year-ago levels. The underlying increase in trade was aided by WCSB production growth (that should continue based upon this winter’s robust drilling program) as well as hefty storage draws. Looking ahead, slow U.S. production recovery should enable Canadian supply to head south of its border. Yet, truth be told, more expansive export opportunities (envisioned back in January) will likely be limited by emerging cross-currents.

Harder for Public Oil Companies to Grow Oil Volumes

Public oil companies own nearly 40% of current crude and condensate supplies of ~80 MMB/D and its share is expected to remain at that level for the next twenty years. They operate mostly smaller assets with higher base decline rates. As a result, they require more volume growth to increase production. In addition, the cost to develop new volumes is much higher than for state companies. However, higher growth volumes from state companies are unlikely due to the political and economic constraints that they face.

More Tanker Capacity and LNG Supply Raises Question of Spot Rate Direction

Asia will renew its downturn in April and Henry Hub support – domestic demand growth outpacing supply growth – will squeeze margins on U.S. LNG exports. U.S. selling to Atlantic Basin markets will become more of an imperative, even if the volume largely avoids N.W. Europe.

Market Sentiment Drives Up Cape Freight Rates

The 5TC Capesize tripcharter rate surged to $18,000/day, helped by high levels of Cape fixing and optimism regarding China’s bulk demand. The strength in the Cape market leant strength to the smaller vessel markets, with both Panamax and Supramax rates tracking higher over the past month. There has been a considerable rise in booking Capes on one-year time charters over the last month which has driven period rates higher. PIRA expects the Cape market to cool in the short term but rebound in 2H17.

Imminent Shuaiba Shutdown Will Make Kuwait a Gasoline Importer

Kuwait National Petroleum Corporation (KNPC) is preparing to shut down the 190 MB/D Shuaiba refinery in April 2017. With the ensuing reduction in crude runs, Kuwait will become a marginal gasoline importer, while cutting heavy fuel oil exports to near zero and reducing the volume of other products available for export. The shutdown will also effectively allow for additional crude exports without violating the recent OPEC production agreement.

More Demand and Less Supply — a Recipe for Higher Prices

The onset of “Big Three” demand gains affords producers a long-awaited outlet for supply growth, but the challenge of rapidly transitioning from discipline to growth cannot be ignored. To be sure, Appalachian production will be capped by drilling limitations this year, even in the face of potentially 5 BCF/D of new pipeline infrastructure set to come on in the second half of the year. Given the slow convalescence of domestic production, increased industrial and export demand will have to be augmented in the near-term by demand destruction in the electric generation sector. Looking ahead, the possibility that a significant inventory deficit will emerge in advance of the heating season adds considerably to already increasing bullish market sentiment — keeping the 2017-2018 heating season prices firmly supported above ~$3.50/MMBtu.

January 2017 U.S. Crude Production Rises But Below Estimates

U.S. crude and condensate actuals for January 2017 came in at 8.83 MMB/D, up 60 MB/D month-on-month, down 359 MB/D year-on-year and 113 MB/D below PIRA’s forecast. The miss relative to PIRA’s Reference Case appears to be the result of pipeline freeze-offs and a longer than expected lag between drilling and completion activity, delaying the impact of a rising rig count.

Injection Season Commences with Supply in Decline

U.S. natural gas futures closed out 2016 at a calendar year high, making it the best-performing investment among major commodities last year. By the end of February, seasonal demand losses transformed the commodity into the worst year-to-date performer. Yet, with the winter heating season now officially coming to a close this week, the outlook for returns appears much more promising. To be sure, natural gas futures have already managed to gain ~15% this month, with the potential shortfall in storage threatening further upside ahead.

U.S. January 2017 DOE Monthly Revisions: Demand and Stocks

EIA just released its final monthly January 2017 (PSM) U.S. oil supply/demand data. January 2017 demand came in at 19.234 MMB/D, 296 MB/D lower than the weeklies. Total product demand increased 0.9% versus year-ago or 179 MB/D compared to the January 2016 PSM data. It was slower than the 1.9% gain posted for December. Kero-jet demand was the best performer, gaining 144 MB/D or 9.9% vs. year-ago. End-January total commercial stocks stood at 1,357.6 million barrels. Compared to final January 2016 PSA data, total commercial stocks were higher than year-ago by 43.5 million barrels, versus an excess of 46.1 million barrels seen at end-December.

Chinese Industry Feeling Gas Price Pain

Industrial gas users in south China’s Fujian province are unsatisfied with the local government efforts to shield them from a wholesale price hike, pointing out they are already paying significantly more than a year ago. Fujian’s capital Fuzhou, along with the cities of Quanzhou, Xiamen and Zhangzhou, passed on hike in citygate prices – which was driven by the rising cost of LNG imports – to end-users in December. Three ceramics producers in Fuzhou and Quanzhou told Interfax Natural Gas Daily the tariff hike increased their production costs by more than 15% in January.

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.

DW Monday, April 3, 2017: The Great Global Gas Surplus

16 1DW Monday Logo PNG 300x75 copyThe production of LNG in recent years has increased dramatically. According to Westwood Global Energy data, LNG liquefaction capacity increased from 121 million tons per annum (mmtpa) in 2000 to nearly 270 mmtpa in 2010, and will reach just over 400 mmtpa by the end of 2017. A wave of ‘mega-projects’, each costing tens of billions of dollars, have been completed in the Middle East and Australasia over this time. With depressed spot prices and further capacity due to come onstream, the outlook for the sector appeared grim. However, there are now signs that the market may start to correct through a supply-side response.

Global Liquefaction Capacity 2009-2021

16 2DWMonday Global Liquefaction Capacity 2009 20211

Over the last decade, substantial growth in LNG export capacity has been driven by abundant supplies from both conventional and unconventional sources, combined with expectations of booming natural gas demand, as switching occurs from nuclear and coal. In addition to the projects in Qatar and Australia, we have seen the US become a natural gas exporter to customers in Europe, Latin America, Asia, and even MENA over the last 12 months. The US unconventional boom has increased the domestic natural gas supply significantly, prompting the US to convert some of the LNG terminals originally designed for gas imports into export terminals.

The US’ competitive advantage relative to other LNG export geographies are: (i) abundant natural gas reserves (and substantial volumes of ‘associated gas’ produced as a by-product of tight oil extraction), (ii) the ability to produce these reserves at highly economical wellhead prices, (iii) the presence of a liquid and transparent gas trading market (i.e. Henry Hub), and (iv) less capital intensive brownfield LNG export infrastructure, predominantly along the US Gulf Coast (PADD 3). All of these factors contribute towards US LNG cargoes being very competitive in global markets.

Elsewhere, however, cuts in upstream expenditure, project delays, and technical issues all have been impacting production rates and some LNG terminals are faced with gas supply shortages. The LNG terminal at Point Fortin in Trinidad & Tobago has reported a 30% shortage in 2016 and expects a 35% shortage in 2017, equivalent to some 75 cargoes. The Egyptian LNG plant continues to struggle after many years of declining production, and in 2015 Egypt became a net importer of gas.

Technical issues at the Gorgon project in Western Australia have caused a number of production interruptions since starting up in March 2016, and this week Chevron announced that Train 2 would be suspended to allow modification works to be undertaken to “enhance reliability.” The Nigeria LNG plant at Bonny Island has suffered from problems with pipeline infrastructure including an explosion in February this year.

Whilst oil prices have recovered through direct intervention from a cartel of producers, the gas market has been left to market forces to re-balance. In the last 12 months, oil prices (WTI) have recovered by 43% from $35 (1st April 2016) to $50 (31st March 2017). Gas prices (Henry Hub spot) have, however, bounced back by 56% from $1.88 $/mmbtu (1st April 2016) to $2.94 (27th March 2017).

The market remains precariously balanced. Further additions to supply are expected from projects sanctioned prior to the downturn, with many of these in USA. Last week, Cheniere announced the completion of Train 3 of its US Sabine Pass project, which will add 4.5mmtpa to the existing 9mmtpa capacity, and Train 4 is reportedly in the commissioning process. Overall, DW expects to see 90mmpta of capacity added globally between 2018 and 2020. Recent supply interruptions may, therefore, prove to be only a temporary respite as current demand forecasts suggest an oversupply of LNG will persist throughout the balance of this decade.

Steve Robertson & Arindam Das, Douglas-Westwood, London

GE and Noble Corporation to Partner on the Digital Rig(SM) Solution

GE (NYSE: GE) and Noble Corporation plc (NYSE: NE) jointly announces a partnership to collaborate on the Digital Rig(SM) solution, enabling data-driven operational efficiency by using data analytics, with the target of a 20 percent reduction in operational expenditure across the rigs.

1GE NobleDigitalRigImage courtesy: GE Marine Solutions

Within the agreement, GE will initially deploy its latest marine Asset Performance Management (APM) system, powered by Predix*, on four of Noble’s drilling rigs. The partnership will allow data-driven operations intelligence to provide broad-ranging benefits for the selected assets on the program’s rigs:

  • Enhanced drilling process efficiency—Foresight visibility of equipment anomalies and drilling process deviations to reduce operational disruptions and enhance performance consistency.
  • Shift to predictive maintenance—Redefine maintenance strategies with a focus on predictive maintenance to achieve long-term, sustainable opex reductions across the fleet.
  • Reduction of third-party service costs—Anytime, anywhere rig visibility and insights that leverage the one-to-many impact of shore-based experts to reduce third-party service costs.

“With shifting market dynamics, the offshore industry is on the cusp of change. Drilling contractors must seize the moment to enhance their competitive edge,” said David W. Williams, chairman, president and chief executive officer of Noble Corporation plc. “We believe the shift to data-driven decisions will have a significant effect on drilling efficiencies. It is imperative for our industry to embrace the digital revolution to stay efficient and nimble, and Noble is leading the way. We look forward to developing our Digital Rig solution with GE.”

“Sluggish oil price, market volatility and geopolitical complexity are shaking the offshore landscape. The industry is challenged with the increased pressure of cost reduction and need for productivity gains. The impending retirement of many experienced workers widens skills gaps and leads to further industry-wide uncertainties,” said Francesco Falco, chief commercial officer, GE Energy Connections’ Power Conversion. “GE’s innovative digital APM solution unlocks reductions in operational expenditure and enhances competitiveness even in the current down market environment.”

GE’s marine APM solution combines “digital twin” data models and advanced analytics to detect off-standard behavior—often a sign of potential failure or performance degradation—of target assets on the rigs. This can sometimes be detected weeks ahead and provides an early warning foresight to operators to mitigate a problem before it strikes.

As the system continues to learn, this ability to predict the future condition of rig-wide assets will also enable a shift from planned to predictive maintenance. Empowered by modern software-based analysis, maintenance is exercised only when there is evidence of need. Compared to planned maintenance, it avoids unnecessary maintenance as well as mitigates the risk of maintenance-induced problems, reducing unplanned downtime and creating significant cost savings. The partnership is targeting to deliver up to a 20 percent reduction in maintenance costs.

In addition, the ability to provide actual rig asset data to onshore experts globally provides unparalleled insights into asset health, allowing experts to remotely diagnose problems and advise on next steps from a central location, potentially reducing third-party service costs. It also helps optimize the offshore maintenance team’s manpower and structure, as engineers will be able to focus on the drilling activity, not fault finding unnecessary problems.

“It is time for the industry to rethink the drilling ecosystem. Offshore companies must adapt to industry disruptions by leveraging digital solutions to counteract the current downswing and for readiness to scale during a market upswing,” said Tim Schweikert, president & CEO, GE’s Marine Solutions. “Industry-wide collaboration underpins a solid digital future. Together, we are stronger and will get there faster. It is a privilege to partner with Noble, and we are looking forward to delivering the results enabled by the digital age.”

Watch a short video of GE and Noble’s partnership on their Digital Rig solution.

* Indicates a trademark of the General Electric Company and/or its subsidiaries.

Statoil Awarded 13 Leases in US Gulf of Mexico

Statoil successfully bid on 13 leases in the US Department of the Interior’s central region Gulf of Mexico lease sale 247, which took place on 22 March. The company was the high bidder on all but two of the leases targeted, securing a stake in all of its main priorities.

“We are very pleased with the results. The leases awarded reinforce Statoil’s exploration strategy of securing prospective acreage, while taking advantage of the cycle to access these leases at favorable rates in the US Gulf of Mexico,” says Tore Løseth, head of exploration in the US and Mexico.

2Statoil GoMGulf of Mexico (Photo: Helge Hansen - Statoil)

Participation in the lease sale marks a reset of Statoil’s exploration in the US Gulf of Mexico.

“The results today are the fruits from taking sufficient time to review lessons from our past exploration campaign, and from thoroughly strengthening our regional subsurface understanding of this area,” says Løseth.

“We continue to believe in the potential of the Gulf of Mexico. Our participation in the lease sale is part of a targeted, step-wise approach to test our play concepts in the area.”

Statoil’s high bids are subject to review and final approval by the authorities. Since re-entering the US Gulf of Mexico in 2004, Statoil has built a significant position offshore with ownership share in six producing fields, two projects under development and one project in the definition phase.

Production from Statoil’s US offshore portfolio averaged 60,000 barrels per day in 2016 and is expected to nearly double by 2020 making Statoil a top-5 producer from deepwater Gulf of Mexico.

Overview of leases awarded:

AreaBlock% InterestGross bonus (USD)
WR 11 100.00% $631,976
WR 55 100.00% $21,237,976
WR 145 100.00% $3,618,976
WR 189 100.00% $11,124,976
WR 316 100.00% $582,976
WR 443 100.00% $955,976
WR 487 100.00% $591,976
WR 617 100.00% $613,976
WR 661 100.00% $669,976
GB 919 100.00% $968,976
KC 612 100.00% $1,661,976
KC 656 100.00% $608,976
KC 657 100.00% $1,231,976

CSA Awarded BOEM Contract for Analysis of Seismic Survey Mitigation Data

3CSA Ocean Press Release 21March2017 copyCSA Ocean Sciences Inc. (CSA) has been awarded a contract from the Bureau of Ocean Energy Management (BOEM) for the analysis of all visual and acoustic mitigation survey data collected during seismic operations in the Gulf of Mexico (GOM) from 2009 through 2015. These data will be combined with the first 6 years (2002-2008) of data analysis, also completed by CSA staff in 2012, and the resulting dataset will be the largest and most comprehensive analysis of U.S. seismic mitigation data and the largest dataset globally collected under standardized regulations. This study plays an integral part in science-based policy-making and risk assessment for future geophysical mitigation requirements and impact assessment. The availability of such data in a peer-reviewed format is necessary to support these environmental impact documents as they must meet best available science criteria.

Due to the increase in required use of passive acoustic monitoring (PAM) throughout the GOM, data analysis conducted during this study will represent the first opportunity to make significant comparisons of acoustic detections to visual detections as well as to evaluate the potential efficacy of acoustic monitoring during a seismic survey. The data analysis will serve the U.S. National Environmental Policy Act (NEPA) process and MMPA rulemaking where it will be used to assess potential impacts of geophysical surveys on marine species, evaluate the efficacy of mitigation measures, and assess impacts of specific mitigation measures on industry operations. As part of this study, CSA will also conduct a comparative analysis of mitigation activities before and after the BOEM settlement agreement (U.S. District Court 2013) as well as assess results in several important GOM ecosystems, such as offshore Sargassum spp. and canyon habitats.

Ultimately, a BOEM technical report, at least one peer-reviewed publication, at least one conference presentation, and an extensive geospatial database will be produced. The project will be led by Mary Jo Barkaszi, CSA’s Marine Mammals Program Manager, and supported by CSA’s Environmental Data and Geospatial Services (EDGS) team for geospatial analyses and data visualization. For more information about this project or other CSA services, click here.

BSEE's Supports Testing of New Oil Burning Technology

4BSEEA team of researchers funded by the Bureau of Safety and Environmental Enforcement began testing new oil burning technology at the U.S. Coast Guard’s Joint Maritime Test Facility on Little Sand Island off the coast of Mobile.

BSSE- sponsored WPI Flame Refluxer® technology at USCG test facility.

Karen Stone, a petroleum engineer with BSEE’s Oil Spill Preparedness Division said the work is being conducted by the Worcester Polytechnic Institute through a grant from BSEE. "BSEE awarded the contract to the Institute in order to help find ways to improve in-situ burning” Stone said. “They have successfully developed a new type of heat-feedback system that improves the combustion of crude oil. While the research is aimed at reducing the emissions from in-situ burning, it also has potential to catch any unburned oil residue that could potentially sink to the bottom of the ocean."

When an oil spill occurs in open water, a controlled burn can be an effective tool that removes oil from the surface of the water. When oil burns, the majority of it is converted into carbon dioxide and water vapor. However, due to incomplete combustion, soot can be created in the smoke and result in a residue on the water. The goal of the research on Little Sand Island is to develop new methods and tools to both improve the efficiency of controlled burns and reduce the amount of soot that is produced.

The test burns currently being conducted constitute the third and final phase of studies seeking to advance the heat feedback system from concept to field deployment. The Worcester Polytechnic Institute will conduct a series of five test burns with its Flame Refluxer® – two baseline burns and three different system configurations. Data collected from the tests will be used to develop a field-deployable prototype designed to increase the efficiency of in-situ burns.

BSEE maintains a comprehensive, long-term research program dedicated to improving oil spill response options through a variety of approaches.

Eni Drills Successful Well in Campeche Bay, Offshore Mexico

5ENILogoEni has successfully drilled the Amoca-2 well in the shallow waters of Campeche Bay, offshore Mexico, confirming the presence of oil in multiple reservoirs.

Amoca-2 is the first well drilled by an international oil major in Mexico since the 2013 Energy Reform. It is located in the Contractual Area 1, 200 km west of Ciudad del Carmen, in the Campeche Bay, in 25 meters of water. The well reached a total depth of approximately 3,500 meters, encountering approximately 110 meters of net oil pay from several good quality Pliocene reservoir sandstones, of which 65 meters were discovered in a deeper, previously undrilled horizon. The well confirmed the presence of 18° API oil in the shallower formations, while the newly discovered deeper sandstones contain high quality light oil. Reserves are still being assessed, but the well indicates a meaningful upside to the original estimates.

“This important discovery comes in a country where Eni has not yet operated and confirms our exploration capabilities, building upon our strong exploration track-record, and is another confirmation of the validity of our “Dual Exploration Model” approach. Focusing on conventional exploration with high initial stakes and operatorship, we manage to fast-track exploration activities, monetize exploration successes early and receive competitive development opportunities, therefore maximizing value generation for our shareholders,” Eni CEO Claudio Descalzi said.

The Area 1 drilling campaign will continue with a new well in the Amoca area (Amoca-3) followed by the Miztón-2 and Tecoalli-2 delineation wells, to be drilled in 2017 to appraise existing discoveries as well as targeting new undrilled pools.

Eni holds a 100% stake in the Area 1 Production Sharing Agreement and is already evaluating options for a fast track phased development of the fields.

Eni has been present in Mexico since 2006 with a representative office and the creation of its wholly owned subsidiary Eni México in late 2015.

Floating Transfer Terminal Concept Promises “jettyless” LNG Ship-to-Shore Transfer

6Floating Transfer Terminal ConceptHoulder, Wärtsilä and Trelleborg to introduce new small to mid-scale LNG distribution infrastructure at Gastech 2017.

The transporting and bunkering of LNG is becoming increasingly important to the energy strategies of archipelagos and coastal communities across the world. Such communities, however have limited appetite for major civil works required for new harbours, quaysides and jetties due to environmental sensitivities and lack of readily available investment.

Recognising this, marine design consultancy Houlder, LNG Infrastructure provider and power generation expert Wärtsilä and hose supplier Trelleborg have combined their talents for innovation to develop an alternative solution that they will formally unveil at this years’ GasTech conference and exhibition in Tokyo, April 4 -7.

Gianpaolo Benedetti, Houlder’s LNG business development manager described the floating transfer terminal as “taking the jetty to the LNG vessel, rather than have the LNG vessel come to the jetty.”

The floating transfer terminal comprises a self-propelled barge that shuttles to and from LNG vessels moored at up to 800m offshore. The barge provides a base for a Houlder transfer system developed with KLAW LNG. It is a hybrid hose handling system that facilitates a safe and secure connection with the LNG vessel. Trelleborg CRYOLINE LNG Floating Hoses are then used to transfer of LNG and Boil Off Gas between the barge and any shore facility. They combine high flexibility, reliability and long service life ensuring that LNG operators’ and contractors’ offloading requirements related to safety, flow rate and operational availability are fully met.

The FTT is a flexible, quickly deployable solution that, thanks to a low draft barge and floating hoses, can operate in the widest possible range of locations at a fraction of the cost of fixed infrastructure.

Gianpaolo Benedetti continues, “Our challenge has been to develop a safe and cost effective solution which also reduces impact on some of the world’s most environmentally sensitive areas. We look forward to sharing our innovation with delegates at the Gastech exhibition next month.”

“Wärtsilä as an EPC contractor sees this new technology enabling us to do even smarter total LNG terminal solutions for various types of small-scale LNG opportunities, where a jetty would be an expensive and time-consuming solution to execute,” says Kenneth Engblom, Director, Sales and Marketing, LNG Solutions at Wärtsilä.

With 25,000 visitors and 600 exhibitors, Gastech will be the largest global gas and LNG exhibition in 2017. You can meet members of the team at the following stands; Houlder, Stand 14-300, Trelleborg, Stand 16-320 and Wärtsilä at Stand 16-080.

Damen Shiprepair & Conversion Completes Series of Works on Jan de Nul Group Vessels

Damen Shiprepair & Conversion (DSC) has recently completed works in Vlissingen and Brest on two major vessels in the fleet of dredging and marine construction specialist Jan de Nul Group. One of these is the Vole au vent, a 140-metre jack-up vessel built specifically for the installation of the latest generation of offshore wind turbines. The other is the trailing suction hopper dredger Leiv Eiriksson. Both vessels are among the largest in their classes, anywhere in the world.

7 1Damen Jack up vessel Vole au vent 1Jack-up vessel Vole au vent. Photo credit: Damen

Vole au vent at Damen Shiprepair Vlissingen

The jack-up vessel Vole au vent arrived at Damen Shiprepair Vlissingen (DSVI) late in 2016 having spent the summer working on the Nobelwind offshore wind farm off the coast of Belgium. She came to DSVl for modifications necessary for her second phase on the Nobelwind project; the installation of the WTG scope. These required the demobilisation of her existing equipment used for the foundation campaign and the installation of a new configuration for the WTG installation phase.

Over the course of two weeks, her 3,400m² main deck was cleared of equipment and temporary structures and restored to its clean, completely flush layout. This allows it to accommodate wind turbine installation equipment and components, towers and blades for its next deployment off the coast of Belgium. DSVl also fabricated and installed some new deck structures including grillages for the transport of the WTG towers and nacelles.

Leiv Eiriksson at Damen Shiprepair Brest

On 16 February, Jan de Nul Groups 223-metre trailing suction hopper dredger Leiv Eiriksson departed from Damen Shiprepair Brest after a three-week maintenance programme. This followed an 18-month assignment on a large-scale land reclamation project in Nigeria.

7 2TSHD Leiv EirikssonLeiv Eiriksson. Photo credit: Damen

The works included replacement of the 1700mm discharge lines, changing the power cables for the suction arms, fresh paintwork, the assisting of specialist sub-contractors with steering gear, propulsion and thruster repairs, valve repairs and minor steel works. With a hopper volume of 46,000m³ and a DWT of 78,500 tonnes, the Leiv Eiriksson is one of the world’s largest dredgers.

Carlos de Vliegere, sales manager at DSC, commented: “Jan de Nul Group is a valued customer of the Damen Shipyards Group and we are delighted to have been able to deliver the services they required for these impressive vessels within the timescales required.”

Other recent projects for Jan de Nul Group have included works last year on the multi-purpose vessel Isaac Newton at Damen Shiprepair Vlissingen and on the trailing suction hopper dredger Taccola at Damen Shiprepair Amsterdam.

Saipem and Siemens to Cooperate on Subsea Control System Technology

8 1Saipem8 2Siemens logo vectorSaipem and Siemens have signed a Joint Development Agreement aimed at qualifying and promoting an open standard Subsea Control Systems for Saipem’s Subsea Bus architecture based on Siemens Subsea DigiGrid.

Siemens, a world leader in electrification and digitalization, will, through its Subsea entity, support Saipem in realizing the Saipem Subsea Bus architecture, by adapting and further developing the Siemens Subsea DigiGrid digitalization, control and communication portfolio into a customized subsea control system. This system is one of the key enabling elements of Saipem’s technology platform for subsea processing systems, and it will be the first control system in the market promoting a modularized and standardized subsea system through Open Framework architecture.

The Saipem Subsea Bus is an extendable Open Framework platform of software and hardware components, including development and debugging tools, designed to ensure full support for and integration into all subsea applications.

The combined system will be capable of controlling an “All Electric” configuration, ideally suited for subsea fields with long distances between wells and host facility, thereby avoiding expensive hydraulic umbilical cables while leveraging distributed architectures with high performing control units to support the most demanding and innovative subsea technology applications, such as seawater treatment and separation.

This collaboration between Siemens and Saipem fits neatly into both companies’ strategic objectives of supporting the Oil & Gas industry with innovative solutions, allowing our customers to exploit new and challenging opportunities and achieve improved operating performances while reducing the environmental impact of their activities. Through this collaboration, Siemens and Saipem will now be able to draw on the combined strengths and excellent know-how in both organizations.

Stefano Cao, Saipem CEO, commented as follows: “This technology cooperation agreement with Siemens marks a further step for Saipem along the road to the development of Saipem’s Subsea Processing Systems. The Open Framework architecture will facilitate the unlocking of the supply chain and the achievement of cost savings through an innovative technological approach”.

Frode Tobiassen, Siemens Subsea CEO, gave the following statement: “In Saipem we have found a partner who is as passionate as Siemens about introducing Open Framework All-Electric systems in order to facilitate flexible digitalization and automation solutions to the subsea industry”.

Bristow Forms New Search and Rescue Consortium in Gulf of Mexico

9BristowBristow U.S. LLC announces that it has been awarded a contract with Shell Offshore, Inc., a subsidiary of Royal Dutch Shell (Shell), for medevac and search and rescue (SAR) services in the Gulf of Mexico.

“We are drawing on our years of experience of safely and efficiently operating SAR around the world to deliver the highest standard of rescue service and medical care in the Gulf of Mexico,” said Bristow Americas Regional Director Samantha Willenbacher. “With our rescue fleet, all parts of the Gulf of Mexico are within reach of this lifesaving service.”

As part of the contract, Shell will also join the new SAR consortium formed by Bristow, which aims to provide unrivaled service and lifesaving capability to members while simultaneously reducing overall costs associated with SAR.

Bristow will deploy a dedicated state-of-the-art Sikorsky S-92 and a Leonardo AW139 to provide SAR response services. An advanced dispatch system staffed by registered EMTs will provide pre-arrival medical instructions over the phone and efficiently prioritize and manage response efforts in the event that multiple, simultaneous call-outs are received.

Bristow will operate the new service from its standalone SAR facility at the South Lafourche Airport in Galliano, Louisiana.