Oil & Gas News

3 1ogci climate investments logo copyOn November 4, 2016, the Oil and Gas Climate Initiative (OGCI) announced an investment of $1 billion over the next ten years, to develop and accelerate the commercial deployment of innovative low emissions technologies.

OGCI Climate Investments (OGCI CI) will aim to deploy successfully-developed new technologies among member companies and beyond. It will also identify ways to cut the energy intensity of both transport and industry. Working in partnership with like-minded initiatives across all stakeholder groups and sectors, the OGCI CI believes its emission reduction impact can be multiplied across industries.”

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In a joint statement, the heads of the 10 oil and gas companies that comprise the OGCI said: “The creation of OGCI Climate Investments shows our collective determination to deliver technology on a large-scale that will create a step change to help tackle the climate challenge. We are personally committed to ensuring that by working with others our companies play a key role in reducing the emissions of greenhouse gases, while still providing the energy the world needs.”

This investment represents an unprecedented level of oil and gas industry collaboration and resource-sharing in this space. This new, additional investment will complement the companies’ existing low emissions technology programs and will draw on the collective expertise and resources of the member companies.

Through discussions with stakeholders and detailed technical work, the OGCI has identified two initial focus areas: accelerating the deployment of carbon capture, use and storage; and reducing methane emissions from the global oil and gas industry in order to maximize the climate benefits of natural gas. The OGCI believes that these are areas where the oil and gas industry has meaningful influence and where its collaborative work can have the greatest impact.

Beyond this, OGCI CI will make investments that support improving energy and operational efficiencies in energy-intensive industries. OGCI CI will also work closely with manufacturers to increase energy efficiency in all modes of transportation.

A CEO and management team for OGCI Climate Investments will be announced in the near future. The closing of OGCI Climate Investments is subject to customary conditions including regulatory clearances as required.

17penspen logoPenspen, a leading global provider of engineering, asset management and integrity services to the energy industry, is pleased to announce the launch of its Pipeline Defect Assessment Manual (PDAM), second edition. This 456-page best-practice guide is a collaborative industry venture, involving a number of leading oil and gas companies, which collates expert advice and guidance for pipeline engineers.

The PDAM project commenced in 1999 and was originally developed to address the industry need to have a single document that contained definitive advice to assist pipeline engineers in maintaining pipeline integrity. Since its creation, the manual has become widely recognised as leading reference material in the pipeline industry and as a result the content has been embedded into the standard procedures of many of its sponsors.

The manual contains the detailed methods needed to assess a variety of defects commonly found in pipelines. The best available methods are presented in a simple and easy to reference manner. The pipeline defect assessment literature reviews are written and peer reviewed by internationally recognised experts within the pipeline integrity industry to provide a sound technical basis for the recommended methods contained within PDAM.

The updates in this second edition include the following:

A new chapter on fatigue assessment guidance.

A new literature review of mechanical damage, fatigue, weld defects, cracking, fracture propagation and subsea integrity issues and associated assessment methods.

A general update of the manual to improve guidance clarity and additional worked examples.

Nigel Curson, EVP Technical Excellence, Penspen, said: “We have put a lot of work into ensuring that this guide contains the go-to reference material for assessing pipeline defects. Many of our sponsors have saved a considerable amount of time, effort and money by referencing PDAM, which has in many instances enabled them to avoid unnecessary and costly damage repairs.

“It’s a collaboration which works and which benefits everyone involved.”

PDAM membership currently stands at 33 international sponsors comprising operators, regulatory bodies, consultancies and inspection companies. The project continues to be updated and developed as more sponsors join. Sponsors are able to dictate the direction of the manual in order to address their current pipeline integrity topics and concerns.

Current sponsors include: ADMA-OPCO, Atteris, BG Group, BP plc, Canadian Natural Resources International, Centro Sviluppo Materiali SpA, Chevron Energy Technology Company, China Petroleum Pipeline Engineering Corporation, China Petroleum Pipeline Inspection Technologies, Compania Operadora de Gas del Amazonas, DNV GL, Equity Engineering, ExxonMobil, Engie, HSE, MACAW, Mero, FGSZ Ltd, National Grid, Open Grid Europe, Petrobras, PII Pipeline Solutions, PGN, Promigas, Saipem UK, Samarco, SASOL, Shell, SNAM Rete Gas SpA, Statoil ASA, Toho Gas Company Ltd, Total and Woodside Energy Ltd.

10HyperdynamicslogoHyperdynamics Corporation (OTCQX: HDYN) announces that it has signed a Letter of Award with drilling contractor Pacific Drilling to engage the Pacific Bora drillship to begin a drilling campaign offshore the Republic of Guinea in the second quarter of 2017.

"We are very pleased to be working with Pacific Drilling, which has a top-quality fleet of deepwater drilling vessels working in a variety of international basins," said Ray Leonard, Hyperdynamics President and Chief Executive Officer. "The Pacific Bora recently completed a long-term contract for a major American multinational energy company offshore Nigeria. The Pacific Bora is expected to arrive shortly before our target spud date for the Fatala 1 well, so the timing is perfect: The ship will come to us with a high-quality, experienced crew, and we will avoid a rig mobilization charge due to the close proximity of the ship's current location in West Africa. We have also negotiated a very attractive rate of $225,000 per day.

"The Pacific Bora is a 6th generation, double-hulled drillship constructed in 2010 with state-of-the art equipment that is capable of operating in 10,000 feet of water and drilling up to 35,000 feet below the mudline. The Pacific Bora has delivered an outstanding 99% revenue efficiency performance over the past 12 months in Nigeria," Leonard added.

The Letter of Award also enables Hyperdynamics to extend the contract to include as many as three additional follow-up wells at the same favorable terms and conditions. The agreement is subject to the two companies entering into a definitive contract to be signed no later than November 29.

Hyperdynamics is an emerging independent oil and gas exploration company that is exploring for oil and gas offshore the Republic of Guinea in West Africa.

4ReflexMarine WAVE 4 Transfer to Vessel Seaway Heavy LiftingReflex Marine, a global leader in offshore access, showcased its new WAVE-4 marine personnel transfer carrier for the first time to the oil and gas industry at the Offshore Energy 16 exhibition and conference in Amsterdam.

Taking the conference’s theme of ‘entering a new era’ Reflex Marine believes the time is right for the industry to drive a new era in safe personnel transfer, and is urging operators to review their crew transport options, including an evaluation of risks.

WAVE-4 is the company’s latest innovation to support safe transfers and improve the efficiency of operations. WAVE-4 is the only transfer carrier for standing passengers to protect against the four major risks of personnel transfer: vertical impact, lateral impact, falling and immersion.

Other benefits include a small deck footprint, quick and easy entry and exit, buoyancy and self-righting in case of immersion and stretcher capacity for use in an emergency evacuation, with the casualty maintained above the water line. WAVE-4 also has a simple inspection and maintenance schedule, enabling reduced downtime with increased convenience and efficiency.

WAVE-4 is the latest addition to Reflex Marine’s established range of personnel transfer carriers, which includes the industry-leading FROG-XT four, six and 10 person range. Wherever personnel need to be transferred in the marine environment there is now a Reflex Marine carrier to suit the operations and environment, from extreme to calm seas states.

With over 20 years’ experience, Reflex Marine is involved in more than one million safe personnel transfers across the globe every year. All its products focus on reducing risk and improving safety for passengers while the company’s long-term aim is to encourage an increase in safety standards across multiple industries.

Catherine Allinson, Business Manager for Europe, who attended Offshore Energy, said: “The theme of the Offshore Energy conference is very much in line with our desire to see the industry enter a new era in safe personnel transfer. Verified data has shown that the chances of fatality in helicopter transfers are approximately 11 times higher than for crane transfers and we believe it is time for the industry to both act on these risks and consider all transport options.

“Our innovations and technology developments have led to safer methods of crew transfer across the globe, regardless of sea state, and have set new standards and expectations for the industry. Through changing the perspective of crew transfer from being seen as inherently high-risk, to being accepted as a manageable activity that can be performed safely and cost effectively, we can ensure continuity and safety in offshore operations. WAVE-4 is our latest development to support our mission of raising safety standards offshore.”

Statoil, on behalf of the Trestakk license holders, is awarding an EPCI contract to FMC Technologies and Technip Norge, and a topside contract to Aker Solutions, for deliveries to the Trestakk development.

FMC Technologies and Technip will jointly deliver an EPCI contract (engineering, procurement, construction and installation) – subsea, umbilicals, risers, flowlines – including subsea template, manifold, subsea trees, completion system, wellheads, pipelines, risers, control systems, control cable and marine operations.

Image courtesy: Statoil

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“Statoil has cooperated closely with partners and suppliers to reduce development costs for the Trestakk field. We submitted the plan for development and operation to the authorities on 1 November, and we are pleased to be able to award contracts already now to FMC Technologies, Technip and Aker Solutions.” “The Trestakk development is important to maintain activity on the Norwegian continental shelf,” says Torger Rød, senior vice president for project development in Statoil.

Aker Solutions in Trondheim will be awarded the contract for the Åsgard topside work. The Åsgard A production vessel will be modified to receive oil and gas from the Trestakk field.

The work mainly consists of piping to connect the well stream to the vessel, and upgrading of the metering systems.

2ExxonMobilExxon Mobil Corporation (NYSE:XOM) have announced a significant discovery with a potential recoverable resource of between 500 million and 1 billion barrels of oil on the Owowo field offshore Nigeria.

The Owowo-3 well, which was spud on Sept. 23, encountered about 460 feet (140 meters) of oil-bearing sandstone reservoir. Owowo-3 extends the resource discovered by the Owowo-2 well, which encountered about 515 feet (157 meters) of oil-bearing sandstone reservoir.

“We are encouraged by the results and will work with our partners and the government on future development plans,” said Stephen M. Greenlee, president of ExxonMobil Exploration Company.

Owowo-3 was safely drilled to 10,410 feet (3,173 meters) in 1,890 feet (576 meters) of water. The Owowo field spans portions of the contract areas of Oil Prospecting License 223 (OPL 223) and Oil Mining License 139 (OML 139). The well was drilled by ExxonMobil affiliate Esso Exploration and Production Nigeria (Deepwater Ventures) Limited and proved additional resource in deeper reservoirs.

ExxonMobil holds 27 percent interest and is the operator for OPL 223 and OML 139. Joint venture partners include Chevron Nigeria Deepwater G Limited (27 percent interest), Total E&P Nigeria Limited (18 percent interest), Nexen Petroleum Deepwater Nigeria Limited (18 percent interest), and the Nigeria Petroleum Development Company Limited (10 percent interest).

11RioOilGas logoIn the event, the Ministry of Mines and Energy also advocated lower payments of royalties for small and medium-sized onshore companies

A faster, simpler and standardized environmental licensing process, with electronic processes, is among the objectives of Ibama’s, Brazilian federal environmental regulator, Licensing Board. The new director, Rose Hofmann, said in a plenary session at Rio Oil & Gas, that the body will adopt terms of reference for similar situations, which eases and standardizes the licenses. There will also be investment in personnel qualification and adoption of control and management mechanisms.

"We will have an annual licensing plan [with projects planned for the period] and goals to pursue efficiency and agility," she said. IBP’s executive secretary of Exploration and Production, Antonio Guimaraes, cited the industry's efforts to help speed up the licensing processes, such as the cooperation agreement with Ibama for the preparation of terms of reference and the mapping of the Brazilian coastline and islands. For Guimarães, the slowness of the licenses jeopardizes the industry. He exemplified saying that no drilling license of the 13th Round, in 2015, has been granted yet.

Fewer royalties for the onshore

In another panel, the Secretary of Oil, Natural Gas and Renewable Fuels of the Ministry of Mines and Energy (MME), Márcio Felix argued that small and medium-sized oil companies operating in the onshore segment should pay less royalties to the states, municipalities and to the Union. Currently, the transfer amounts to 10%, but Felix believes that 5% or a progressive percentage would be a better solution so that low-production projects are not negatively affected or rendered impossible due to the price drop in the international market.

Felix spoke to an audience of executives and experts of the oil industry during the Onshore Forum, a parallel event that was held during Rio Oil & Gas, in Rio de Janeiro. "We are in the threshold of economic feasibility in some areas and for that reason we need to think of a number of measures to help us open a new range of opportunities. We want to provide all the required support so the country may find in the onshore segment another source of development", the secretary explained.

Congressman Beto Rosado presented the draft bill 4663, which is being processed in the Lower House, which provides for a new regulatory framework for the onshore segment. The project provides for new rules regarding infrastructure, logistics, environment and credit policies for small and medium-sized companies of the onshore segment. "With the approval of the draft bill and the resumption of onshore exploration, we will have a new scenario that will generate more jobs and income for the country", he argued.

Currently, there are 329 exploration blocks in Brazil, according to the National Agency of Petroleum (ANP). Of these, 209 blocks belong to the onshore segment, which counts on 33 operators. Of the 403 fields under development or production in Brazil, 286 are onshore fields, operated by 23 companies. The onshore produces today 146 thousand oil barrels per day, about 6% of the 2.6 million barrels of oil produced daily in the country.

For the president of IBP, Jorge Camargo, the onshore segment can be an important vector of economic growth in Brazil. "Those are extremely rich areas with excellent development potential. Besides, they also drive the local market and diversify the oil industry", he said.

Another highlight today in Rio Oil & Gas was the Secretary of the Investment Partnership Program, Moreira Franco, saying that he hopes to see soon the approval of two points of the draft bill on the end of the single operator, which is being processed in the House of Representatives, with sanctions. According to him, one of the government's goals is to strengthen the oil and gas industry. "With the strengthening of the oil industry, Petrobras will revive", he said.

Moreira Franco also advocated the balance of revenues and expenditures in Brazil, which, according to him, has to maintain a budget surplus to pay debts, reduce the interest rate that is currently at 14% to control the inflation, stabilize public accounts and ensure legal safety in contracts, to become a competitive country. "The focus is on the economy and on the fiscal target. Without it, we will not balance the national accounts. Yesterday we approved in the second round in the Lower House a constitutional amendment that will help us to balance revenues and expenditure with the actual budget", he said.

7RioOilGaslogo rogThe first day of Rio Oil & Gas, at Riocentro, was marked by the presence of president Michel Temer, by the appointment, made by the Minister of Mines and Energy, Fernando Coelho Filho, of the new Director General of the National Agency of Petroleum (ANP), Decio Oddone, who will replace Magda Chambriard, currently in office, and also by the signature of a memorandum of understanding between Petrobras and the French oil company Total, and by authorities and the industry recognizing the need for greater competitiveness of the oil industry in order to attract investments and generate employment and income.

An important step to increase competitiveness in the national oil industry was the approval by the Lower House of the draft bill that ends with the figure of Petrobras as the single operator of the pre-salt. That was acknowledged by President Temer himself, by Petrobras’ CEO, Pedro Parente, and by the president of the Brazilian Petroleum, Gas and Biofuels Institute, Jorge Camargo during the opening of the largest oil and gas event in Latin America.

The event was also the venue for the Memorandum of Understanding signed between Petrobras and the French oil company Total, consolidating a strategic alliance for the Exploration, Production and Gas & Power branches. The announcement was made by Parente and by Total’s Global CEO, Patrick Pouyanné, at a press conference.

According to Parente, the memorandum started to be drafted earlier this year, but it does not imply any legal binding. However, it represents a very sound line of intentions and may include areas in which the partnership is already in force, or in future fields. The idea is that the companies shall remain close both for divestments and for new businesses. The state company shall set until the end of the year the projects in which it will partner up with the French oil company.

Total’s Global CEO, Patrick Pouyanné, highlighted that he appreciates the partnerships with Brazil, both here and abroad, stating that the company intends to extend the projects to other areas, such as exploration and production. "Brazil is a big market. There are many opportunities", he said.

Also at Rio Oil & Gas, Prumo Logística and GranEnergia announced the creation of a new company that will provide integrated logistics solutions and services for the oil and gas industry, which will start operating in November, at the Port of Açu. Dome was created with the purpose of contributing to greater efficiency and optimization of costs in projects and operations of the industry, focused also on integrity management and vessel and equipment modernization. The company will cover an area of 47,000 square meters in the Port of Açu, in a privileged location, at the entrance of the channel.

Petrobras - new moment

At a lunch-lecture that addressed Petrobras’ new paths, the executive director of Strategy, Organization and Management System of the company, Nelson Silva, explained that the company's new business plan is primarily driven by the new economic outlook that focuses on generating results. "The strategic plan was widely discussed and is linked to the company’s business plan. We are questioning where the company wants to be in 20 years. The company wants to be an integrated energy company focused on oil and gas that evolves along with society, adding value through its deep technical abilities", he stated.

Silva said that Petrobras considers two metrics with the same weight: to achieve the financial target, which is to reduce the leverage of the net debt (EBITDA) from 5.3 million in 2015 to 2.5 million in 2018 and to mitigate risks, reducing by 36% the rate of recorded casualties (TAR*) from 2.2 in 2015 to 1.4 in 2018. "A US $ 6.3-billion debt is equivalent, for example, to what we refrained from investing in a new production unit. That is the reason for our urgency to speed up the reduction of the debt so we can go back to re-invest in the company’s core business", explained the director.

Competitiveness

At a plenary session, Andy Brown, Shell’s Global Vice-President of Exploration and Production, drew attention to the competition for investments in the world, highlighting the billion-dollar decrease in investments this year and the importance of stability and regulatory environments in such a competitive world. To illustrate opportunities in Brazil, he mentioned the work in partnership with Petrobras and the constructive dialogue with the government and regulating bodies.

The importance of Brazil’s global competitiveness was also highlighted by the president of Statoil in Brazil, Päl Eitrheim. The executive emphasized the size of the Brazilian market and the strength of its institutions.

Petrobras’ director of Exploration and Production, Solange Guedes, said the stage that the industry is going through requires cost optimization and she also reported that Petrobras was able to reduce by 28% its extraction costs in the pre-salt in the last two years. "The repetition of the learning cycle leaves a legacy, which is the base of a solid and robust knowledge that allows us to deliver an even more competitive industry to Brazil."

Refining

Petrobras’ director of Refining and Gas, Jorge Celestino, estimated supply prospects in the country, according to economic and regulatory aspects. According to Celestino, in recent years there has been a strong growth in fuel demand in Brazil, followed by the increase of import of derivatives. "Brazil has a vocation to export and can count on a privileged geographical position with access to the pre-salt layer, but it faces an external crisis and also the global competition, which renders unfeasible the construction of refineries for exporting”, he said.

Celestino pointed out that, right now, "the encouragement to the operation of other companies in the downstream branch and the partnership with third parties to expand its refining capacity are the milestones of Petrobras’ new approach."

Gas

Experts also concluded that Petrobras’ sale of assets paved the way for the development of the Brazilian gas market, which, in order to advance, will need to have its rules changed, in addition to a greater integration between the links of the chain.

Roberto Schloesser, coordinator of the Study Group on Natural Gas at IBP, said the new scenario requires regulation changes and the creation of a central agency to regulate the industry and to develop the foundations of a "true natural gas market in the country "- which should provide for access rules and have liquidity and stability.

Danny Hard, General Manager of Anadarko for Brazil and the Gulf of Mexico, mentioned the project that integrated the fields of the Independent Hub, which brings together 12 offshore areas in the US Gulf of Mexico. "We managed to develop these reserves and start production in an integrated manner, in just 4 years and a half."

Arenas

Rio Oil & Gas also presented the first edition of the Technology Arena. "For four days, we will have lectures about the fascinating world of technology, startups, strong-base companies, etc. May innovation remain as the fuel for work in the companies", summed up the Secretary General of IBP, Milton Costa Filho. He also pointed out that IBP has collaborated with Lloyd's Register Energy to develop a research focused in Brazil in order to develop enhanced policies for the country.

With the subject "Prospects and Challenges for the Oil and Gas Industry", the Knowledge Arena was opened addressing one of the main current issues of the oil industry worldwide: changes in the energy matrix and its impact on the industry. IBP’s economic analysis manager, Luciana Nunes, opened the debate noting that energy consumption has doubled in the last 30 years, but the discussion today revolves around how the global consumption trends may affect these figures.

It is true fact that the oil industry – which in 2015 accounted for 46% of all investments in energy in the world, while renewable energy were ranked second, with only 17% of the market share - needs to adapt to the new era, warns Luciana. An industry that has been following technological changes that will also affect the demand for energy in the world, as is the case of electric cars. The figures show, however, that even if the world car fleet remains the same, in 2030 electric cars will only account for 11% of the world fleet. Today this share does not even reach 0.2%.

With the expected market opening, experts debated two important issues in the Financial Forum: the arrival of new companies that will demand services and a possible change in the way that projects are funded. "Both the country and the industry must have a reform agenda. However, such reforms have no use if the players are not aware of them. Brazil must absolutely implement a communication program for its players", said Fernanda Custodio, EDC’s manager for Latin America.

The traditional Sustainability Arena - formerly known as Social Responsibility Arena - aimed to show that the oil and gas industry is in line with the sustainability discourse. The event addressed the 17 sustainable development objectives proposed by the United Nations as a replacement to the "Millennium Development Goals", a legacy of Rio + 20, as well as the initiatives proposed by the oil industry to mitigate the impacts.

Bibby Offshore, a leading subsea services provider to the oil and gas industry, has this year been awarded two contracts from Shell to provide inspection services on assets in the Corrib Natural Gas field in the North Atlantic Ocean.

The first contract, completed in June this year, saw Bibby Offshore’s construction support vessel Olympic Ares - equipped with Quantum Work Class and SeaEye Cougar Inspection Class ROVs - perform subsea inspections 83km off the North West coast of Ireland, in water depths of approximately 360m.

6Olympic Ares 0913 398Construction support vessel Olympic Ares

The 40 day campaign involved pipeline survey inspection work on a 83km long 20” gas pipeline, and internal wellhead and manifold fault diagnostics, structural inspection and cathodic protection measurements, to ensure optimum levels of productivity were achieved.

Bibby Offshore’s successful completion of this scope of work resulted in Shell awarding the company a second contract at its West Ireland assets. The project commenced in July and is set for completion by the end of this year.

Barry Macleod, managing director at Bibby Offshore, said: “These contracts are very important for Bibby Offshore and our relationship with Shell is continuing to strengthen. Securing the second scope of work off the back of our success in June is testament to the skill and dedication of our team to deliver for our clients.”

The second contract will see Bibby Offshore also utilise its construction support vessel Olympic Ares - equipped with two Quantum Work Class ROVs.

The three week campaign involves Bibby Offshore installing an electrical distribution unit and several replacement control jumpers. The company will also perform inspection, repair and maintenance services in water depths of 400m.

Bibby Offshore successfully provided riser replacement services on Shell’s Pierce project in 2014, and supported work on its Curlew in early 2015.

Source: U.S. Energy Information Administration, based on Rystad Energy
Note: Includes lease condensate and hydrocarbon gas liquids.

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Global offshore oil production (including lease condensate and hydrocarbon gas liquids) from deepwater projects reached 9.3 million barrels per day (b/d) in 2015. Deepwater production, or production in water of depths greater than 125 meters, has increased 25% from nearly 7 million b/d a decade ago. Shallow water has been relatively less expensive and less technically challenging for operators to explore and drill, but changing economics and the exhaustion of some shallow offshore resources has helped to push producers to deepwater or, in some areas, ultra deepwater (at depths of 1,500 meters or more) resources. The share of offshore production from shallow water in 2015 was 64%, the lowest on record.

Globally, offshore oil production accounted for about 30% of total oil production over the past decade. In 2015, offshore production was 29% of total global production, a moderate decrease from 32% in 2005.

Advancements in drilling technology, dynamic positioning equipment, and floating production and drilling units have made prospects viable that were previously unreachable. Although technological advancements have made new areas accessible, deepwater projects require more investment and time compared to shallow waters or onshore developments. As a result, most nations with offshore assets operate only in shallow water.

In areas with deepwater operations, production has grown significantly, and in many cases overtaken shallow-water production. The majority of deepwater or ultra deepwater production occurs in four countries: Brazil, the United States, Angola, and Norway. Each of these countries has realized an increasing share of crude oil production from deepwater or ultra deepwater projects over the previous decade. The United States and Brazil together account for more than 90% of global ultra deepwater production, with ultra deepwater production expected to increase in 2016 and 2017 in both countries.

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Source: U.S. Energy Information Administration, based on Rystad Energy
Note: Includes lease condensate and hydrocarbon gas liquids.

Brazil leads the world in the development of deepwater and ultra deepwater projects. Brazil has increased deep and or ultra deepwater production from 1.3 million b/d in 2005 to 2.2 million b/d in 2015. An increasing amount of Brazil’s production comes from presalt resources found under thick layers of salt at extreme depths. The coast of Angola shares similar geologic features with the coast of Brazil because of the separation of the African and South American tectonic plates during the Early Cretaceous period, around 150 million years ago. These geological similarities have led producers in Angola to target several major basins for presalt exploration.

Principal contributor: Matthew Manning

16eme23055hTugboat companies complying with Subchapter M regulations are required to have man overboard (MOB) procedures in place, including a way of retrieving crew who have fallen overboard. C-HERO has put together a package to help tug and barge workers fulfill this mandate, the MOB Total Solution. The system includes the C-HERO Lift™ Portable MOB Davit, C-HERO Reach™ Attachment Pole, and Emerald Marine Products' ALERT2 Man-Overboard Alarm System.

The pioneering ALERT2 system consists of a water-activated transmitter and receiver. When the unit is immersed in water, a piercing wheelhouse alarm alerts crew to the fall. It can be wired to set a waypoint, sound external speakers and/or stop engines. Unlike AIS, the audible response is instantaneous. When every second matters, ALERT2 provides the critical extra time needed for a successful rescue.

Once crew is alerted to a fall overboard, the next step is to pull the victim out of the water. This is the connection that formed the business relationship between Emerald Marine Products and C-HERO. Sharing the same customer base, the companies are working together to provide the commercial marine industry quality lifesaving solutions.

The C-HERO Reach Attachment Pole is designed to attach a lifting strap to an alert or unconscious person in the water (PIW). Connected by the 10mm Samson Warp Speed line to the davit, the strap is cinched and the PIW is lifted.

Weighing only 30 lbs. and deploying in less than 20 seconds, the C-HERO Lift Portable MOB Davit quickly attaches to a quarter bitt and reaches out 5.5'. Built of durable marine-grade aluminum and stainless steel, it features a Harken 20:1 winch, Antal line clutch and Wichard Snap Hook. It's so rugged and easy to use, one person can hoist and bring back on board over 400 lbs.

"The products our companies manufacture are a perfect match with one another," said Robert Linder, Emerald Marine Products president. "Combined, the complete MOB solution will make a significant contribution to helping deckhands stay safe and survive a fall-overboard situation."

Subsea 7 S.A. has announced the award of a substantial* contract, offshore Egypt, by Pharaonic Petroleum Company to be executed at water depths of over 900 meters in the Atoll field.

The contract scope includes the engineering, procurement, construction and installation of more than 40 kilometers of rigid pipelines and associated structures for the new Atoll field, tying into the existing Taurt field at a water depth of 100 meters. A 105 kilometer umbilical will also be installed linking the Atoll field to shore.

8SevenBorealisSeven Borealis. Photo courtesy: Subsea 7

Engineering and procurement services have already commenced. Offshore campaigns will take place in the second half of 2017 and the early months of 2018, using the Subsea 7 vessels Seven Borealis, Seven Eagle, and Seven Arctic.

Subsea 7's Region Vice President for Africa, Gilles Lafaye, said: "We are delighted to strengthen our presence in Egypt. This substantial contract award recognizes our technical expertise and track record of strong execution for Pharaonic Petroleum Company".

* Subsea 7 defines a substantial contract as being between USD 150 million and USD 300 million.

Subsea 7 contracted STATS Group to provide positive isolation of pressurized mechanically lined BuBi® pipe to facilitate reeling onto a pipe lay vessel at their facility in Norway, prior to installation at the Aasta Hansteen gas field.

When the Aasta Hansteen gas field was discovered in the Norwegian Sea in 1997, its remote location and deep water were always going to make recovering resources challenging. Situated 300 kilometers from shore and at water depths of 1300 meters, its location is out with the current established infrastructure.

The planned field development, including a SPAR platform, will be the first such installation on the Norwegian Continental Shelf (NCS). The SPAR floating installation, consisting of a vertical column moored to the seabed, features conventional topsides and processing facilities. Once installed, the risers transporting the gas from the seabed to the platform and further to the Polarled pipeline will be pure steel, another first for the NCS.

9 12in I PEP with handling bracket during FAT12” I-PEP with handling bracket during FAT. Photo courtesy: STATS Group

Subsea 7 were contracted to perform the tow-out and hook-up of the SPAR FPSO, including the Steel Catenary Riser (SCR) system and reeled installation of 12” BuBi® mechanically lined pipe. This involved the fabrication of flowlines and SCRs at Subsea 7’s spool base facility at Vigra, Norway. In order to allow the 12” BuBi® pipe to be welded and reeled onto the vessel, STATS Group provided positive isolation of the pressurized pipe during spool reeling operations.

Aberdeenshire-based STATS proposed the use of their Pipe End Plugs which feature locks and dual seals and are capable of conducting pressure tests up to 200 bar. Pipe End Plugs are typically used during the construction and fabrication of pipe spools and piping systems, these fail-safe tools cap open-ended pipe, facilitating hydrostatic leak and strength tests. Pipe End Plugs provide many benefits and hydraulically activated they are quick and easy to install, providing a safe and cost effective solution. STATS range of Pipe End Plugs cover two separate products, the I-PEP™ which fits internally to the pipe and the E-PEP™ which grips the pipe externally.

Prior to the arrival of the pipe lay vessel the first pipe stalk of 1.5 kilometers was positioned on the spooling rollers and Hi-Diff Pigs were inserted into the vessel end of the stalk. Once installed, a reel flooding head was welded to the pipe stalk and a Pull-In Head was bolted to the stalk flange. The second pipe stalk of 1.5 kilometers was positioned and welded to the first stalk.

After the arrival of the vessel, the pipe stalk was attached to the vessel using the Pull-In Head. A STATS E-PEP™ was then installed to the pipe stalk and a small volume of water was injected through the E-PEP™ into the stalk.

This water would be used to act as a buffer for the Hi-Diff Pigs which are pigged through the stalk as the pipe is pressurized from the vessel. The pipe stalk was then pressurized to 45 bar and the High-Diff Pigs were pigged towards the E-PEP™.

Once water began to flow through the open valve on the E-PEP™, the valve was closed and the pressure held. The pressure acting on the E-PEP applies differential pressure across the tool, which self-energizes the locks and seal, ensuring fail-safe operation. The pipe stalk was then reeled onto the vessel until the end of the pipe stalk was located in the welding station. The pipe stalk was then depressurized and the valve on the E-PEP™ was opened allowing the water to drain from the stalk and the E-PEP™ was hydraulically unset and removed from the end of the stalk.

The pipe stalks were then welded together and non-destructive testing (NDT) was carried out to confirm the integrity of the new weld. The E-PEP™ was then positioned and installed at the end of the pipe stalk and water was injected through the valve on the E-PEP™. The sequence was then repeated to pressurize the pipe stalk, pigging the High-Diff pigs through the stalk and allowing the mechanically lined stalk to be reeled onto the vessel.

Prior to commencing the final stage of the spooling operation, STATS installed a 12” I-PEP™ into the pipe stalk, the internally installed I-PEP™ features locks and seals which grip the inside of the pipe. Installing this tool ensured there was nothing on the outside of the pipe that could clash or restrict the pipe stalk as it was reeled through the pipe rollers between the quayside and the vessel.

Campaigns took place in 2016 which consisted of 17 km of BuBi® mechanically clad flowlines being reeled onto the vessel and installed at the Aasta Hansteen gas field. STATS also supplied a mechanical clamp and 1” hot tapping machine to facilitate the draining of the pressurized spooling fluid from the pipe once it was reeled onto the vessel. STATS provided specialist hot tapping cutters and a four stage process to allow the mechanically lined pipe to be hot tapped to eliminate contamination of the flowlines with drilling swarf.

This project added to a record of collaboration between Subsea 7 and STATS during pipe reeling and installation projects. This successful project follows a similar workscope completed in the ultra-deep Guara and Lula fields offshore Brazil at water depths of 2100 meters. STATS I-PEPs™ and E-PEPs™ were used to facilitate the pressurized installation of 85 km of 8” BuBi® mechanically clad flowlines during a 15-month campaign.

BP Trinidad and Tobago LLC (bpTT) has announced that the Joe Douglas 240C jack up rig, owned and operated by Rowan Companies, has joined the bpTT rig fleet and has begun drilling at the bpTT Amherstia facility.

BPTT Regional President Norman Christie commented: “The Joe Douglas rig is a welcome addition to the bpTT rig fleet. It represents an opportunity to access more hydrocarbons from our existing acreage in the Columbus Basin, and is a demonstration of our continued commitment to Trinidad and Tobago.”

9BPRowanJoeDouglasPhoto courtesy: BP

The Joe Douglas rig previously worked for another operator in Trinidad and was moored in Chaguaramas for approximately 45 days where it underwent maintenance. After completion of the maintenance work, the rig was moved to the offshore location alongside the Amherstia platform located off the south east coast of Trinidad, where it commenced drilling operations in October.

This is the first time a jack-up rig will work alongside the Amherstia facility and will drill three new wells, with the potential for a fourth. The expected gas output from these three wells is approximately 235 million standard cubic feet a day (mmscfd).

The Rowan Joe Douglas rig joins the bpTT rig fleet of Rowan EXL II (currently alongside the Mango platform) and Diamond Ocean Victory (currently completing the Juniper wells).

About Rowan Joe Douglas rig

  • Type of rig: LeTourneau Technologies 240-C Class Jack-Up.
  • Year in service: 2011.
  • Maximum water depth: 350 ft.
  • Maximum drilling depth: 35,000 ft.
  • Quarters accommodation (POB): 108 persons.

BPTT operates in 904,000 acres off Trinidad’s east coast. BPTT has 13 offshore platforms and two onshore processing facilities.

1 1petrobras total logos

Petrobras and Total inform that Pedro Parente, CEO of Petrobras, and Patrick Pouyanné, Chairman and CEO of Total, have signed, in Rio de Janeiro, a Memorandum of Understanding which sets the general framework for a Strategic Alliance covering Upstream and Downstream activities in Brazil as well as international potential opportunities.

Through this agreement, the companies undertake to join forces in some key areas of mutual interest and to evaluate opportunities in Brazil and abroad to jointly benefit from their internationally recognized expertise on all segments of the oil and gas value chain.

1 2Petrobras TotalPetrobras CEO, Pedro Parente, and the CEO of Total, Patrick Pouyanne. Photo courtesy: Petrobras

As a first phase of implementation, the companies intend to focus on Upstream and on Gas and Power.

In Upstream, Petrobras will propose Total to partner in projects in Brazil and Total will propose Petrobras to partner in opportunities outside Brazil. This new partnership will allow both companies to combine their world class experience and expertise in deep water development to optimize the production and jointly develop this strategic area of activity in Brazil and in other high potential oil and gas provinces, as well as sharing costs and risks in projects with high investment and complexity.

In Downstream, the companies will be working to develop joint activities in the gas and power generation in Brazil.

The memorandum also states that the cooperation will be extended, in a second phase, to a broader cooperation in Brazil focused on all downstream segments.

Currently, Petrobras and Total are jointly participating in 15 consortiums worldwide in exploration and production, nine of which are in Brazil and six abroad. In Brazil, the companies are partners in the development of the giant Libra area which is the first production sharing contract in the Brazilian pre-salt in Santos basin. Outside Brazil, Petrobras and Total are partners on the Chinook field in the US Gulf of Mexico, on the deep-water Akpo field in Nigeria and on the gas fields of San Alberto and San Antonio/Itau in Bolivia, as well as in the Bolivia-Brazil gas pipeline.

10SpeedCastLeading global energy services company entrusts SpeedCast to provide outsourced field engineering services to support their global development operations

SpeedCast has entered into a service agreement to provide field engineering and support services to a leading global energy services company across Europe, Africa, and Asia. Under the agreement, SpeedCast will provide field engineering services to support and maintain remote communications services over fiber, wireless and satellite networks, as well as IT and related technical services to ensure continuity in the company’s remote operations. SpeedCast will leverage its existing global Field Engineering Team throughout these regions to provide technical support expertise and agile field services wherever they are required, enabling the customer to focus on mission critical operations and driving profitability.

“This is an exciting award for us as it is one of several from this same customer over the last year and it validates their confidence in SpeedCast’s ability to provide global managed services and related technical support. With our expanded global team, SpeedCast is well positioned to provide expert support to our customers in key areas of operations for the oil and gas sector around the globe. Our proximity to our customers’ operations sites, the skillset of our engineers and our support and logistics process are all contributing to SpeedCast becoming a partner of choice for the most demanding customers”, said Keith Johnson, Senior Vice President, Energy of SpeedCast.

SpeedCast CEO PJ Beylier added, “It is another important win for SpeedCast that showcases how we leverage our expanding global footprint to service our Energy customers. SpeedCast’s strong global field support capabilities built over the past several years through organic growth and acquisitions are enabling our customers to maximize their network’s uptime. This additional success demonstrates how SpeedCast is evolving as a global communication partner, becoming one of the very few service providers with credibility to support global networks. As the energy sector stabilizes, our strong global field presence is a major differentiator that will fuel our growth momentum.”

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