November 2018

World Trends and Technology for Offshore Oil and Gas

EUROPEAN
TECHNOLOGY
REPORT

1811OFF_C1 1 11/5/18 10:23 AM

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Copyright 2018 Baker Hughes, a GE company, LLC (“BHGE”). All rights reserved. 78399

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 CONTENTS •

International Edition
Volume 78, Number 11
Celebrating 60 Years of Trends, Tools, and Technology

• EUROPEAN TECHNOLOGY REPORT drive subsea R&D and offshore field development in Norway and
Johan Castberg project re-engineered for harsh Barents Sea elsewhere.
environment ��������������������������������������������������������������22 Excelerate, MISC adopt Bureau Veritas lifecycle support service
The Johan Castberg oil development in the Barents Sea is moving for- ������������������������������������������������������������������������������41
ward after a successful cost-cutting exercise. Aker Solutions has been Bureau Veritas is helping offshore vessel owners improve the
one of the major contributors through its adaptations to the harsh-en- performance and costs of their facilities with its asset integrity man-
vironment FPSO and development of the ‘slimline’ subsea production agement system, Veristar AIM3D, developed jointly with Dassault
system which will lower installation and intervention costs. Systèmes. Among the various benefits are said to be improved data
All-polymer connector improves pipeline corrosion mitigation��28 collection, updates, and visualization of the assets.
Swagelining, a Subsea 7 company has developed LinerBridge, the Vessel tracking system helps safeguard offshore infrastructure
world’s first all-polymer connector qualified by DNV GL to technol- ������������������������������������������������������������������������������42
ogy readiness level five (TRL 5). The connector, which is made from GeneGIS GI’s VAMP monitoring system allows offshore operators to
the same material as that of the polymer liner, is an integral compo- track the movement of vessels close to sensitive infrastructure such
nent of the company’s integrated polymer-lining system. as pipelines, lessening the risk of damage or more serious collisions.
Smart standardization for subsea hardware ������������������������30
Enpro Subsea has been working with operators globally to devel- • EXECUTIVE INTERVIEW
op an alternative subsea hardware strategy, which it calls ‘smart New business models can help advance E&P in the Gulf ���������44
standardization.’ This allows operators to maximize recovery from Operators in the Gulf of Mexico (GoM) have had success recently
subsea wells by enabling production enhancing technologies to be focusing on incremental subsea tiebacks and near-field opportu-
fitted to standard OEM fasttracked hardware. nities, and there remains uncaptured upside. However, successful
exploration and development of complex reservoirs continues to
Strong attendance forecast for OMC 2019 ��������������������������32
be a challenge for operators and puts into question the scale of the
Delegates from governments, NOCs, and IOCs will attend OMC
GoM’s growth potential in the coming years. New trends in technol-
2019, an exhibition and conference in Ravenna focused on energy
ogy, development, commercial models, and financing—and industry
developments across the Mediterranean region.
players’ responses to these innovations—will determine whether
Glue-bonded process adapts mechanically lined pipe for reel-lay the GoM will return to its former role as a high-margin, cash-gener-
������������������������������������������������������������������������������34 ation contributor for the best operators.
Butting has developed a glue-bonded mechanically lined pipe that
is suitable for reel-lay installations. It retains the toughness and

22
anti-corrosion properties of its forerunner, the BuBi pipe, while
resolving issues that can cause wrinkling to arise in the liner of this
type during bending (in reel-lay mode).
Bravenes broadens options for pipeline, wind farm protection��36
The Bravenes, launched this May, is said to be the most versatile
flexible fallpipe vessel in Van Oord’s fleet with a variety of subsea
rock installation options. This summer it has worked in the Norwe-
gian North Sea area and in the Baltic Sea for the Nord Stream 2 gas
pipeline project.
Subsea technology thriving in Oslo area�����������������������������38
Subsea Valley is a group of around 200 companies in Norway’s
capital region which includes offshore operators, service groups,
technology developers and R&D institutes. It was formed as part
of the Norwegian Innovation Clusters program and is helping to

Offshore® (ISSN 0030-0608). Offshore is published 12 times a year, monthly, by PennWell® Corporation, 1421 S. Sheridan, Tulsa, OK 74112. Periodicals postage paid at Tulsa, OK 74112 and at
additional mailing offices. SUBSCRIPTION PRICES: US $123.00 per year, Canada/Mexico $145.00 per year, All other countries $202.00 per year (Airmail delivery $283.00). Worldwide digital
subscriptions: $123.00 per year. POSTMASTER: Send address corrections to Offshore, P.O. Box 47570, Plymouth, MN 55447. Offshore® is a registered trademark. © PennWell Corporation 2018.
All rights reserved. Reproduction in whole or in part without permission is prohibited. We make portions of our subscriber list available to carefully screened companies that offer products and
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NOVEMBER 2018 OFFSHORE | WWW.OFFSHORE-MAG.COM 1

1811OFF_1 1 11/5/18 10:20 AM

 • CONTENTS

Volume 78, Number 11

STATEMENT OF OWNERSHIP, MANAGEMENT,

COVER: Europe’s oil and gas industry continues to play a large AND CIRCULATION
role in the development of offshore energy resources around the 1. Publication title: Offshore. 2. Publication number: 403-760
world. European operators, suppliers, and service providers are 3. Filing date: October 1, 2018. 4. Issue frequency: Monthly.
5. Number of issues published annually: 12. 6. Annual
finding new ways to deploy innovative technologies that can make subscription price: $123.00. 7. Complete mailing address
development projects profitable in several international basins. of known office of publication: PennWell Corporation 1421
Equinor is leading this charge on several fronts, including the use of South Sheridan Road, Tulsa, OK 74112, Tulsa County. 7a. Con-
tact person: Traci Huntsman. 7b. Telephone: 918-831-9435.
drilling modules for the Peregrino 2 field development project offshore 8. Complete mailing address of headquarters or general
Brazil. (Photo by Jan Arne Wold, courtesy Equinor) business office of publisher: PennWell Corporation, 1455 West
Loop South Suite 400, Houston, TX 77027. 9. Full names and
complete mailing addresses of Publisher, Editor and Man-
aging Editor: Publisher: Paul Westervelt, 1455 West Loop South
• GULF OF MEXICO DEPARTMENTS
Suite 400, Houston, TX 77027. Editor: David Paganie,1455 West
Loop South Suite 400, Houston, TX 77027. Managing Editor:
Well abandonment rates in shallow-water Gulf of Online ��������������������������� 4 Bruce Beaubouef, 1455 West Loop South Suite 400, Houston, TX
Mexico off historic highs��������������������������������48 77027. 10. Owner: PennWell Corporation, 1421 South Sheridan
Comment ����������������������� 5 Road, Tulsa, OK 74112, Tulsa County. 11. Known Bondholders,
In the third part of this series on Gulf of Mexico well ac- Data ����������������������������� 6 Mortgages, and Other Security Holders Owning or Holding
tivity, abandonments are described. Circa 2017, 52,964 1 Percent or More of Total Amount of Bonds, Mortgages,
Global E&P ��������������������� 8 or Other Securities: None. 12. N/A. 13. Publication Title: Off-
wells have been drilled in the Gulf of Mexico and 27,405 Offshore Europe ��������������12 shore. 14. Issue Date for Circulation Data: September 2018.
wells have been permanently abandoned, about half of Gulf of Mexico����������������14 15. Extent and Nature of Circulation:
all wells drilled. Remaining well inventories at the end Subsea Systems ��������������15 Average No. No. copies of
copies each single issue
of 2017 totaled 25,559. Vessels, Rigs, & Surface issue during published
preceding nearest to
Systems �����������������������16 12 months: filing date:
• DRILLING & COMPLETION Drilling & Production��������18 a. Total number of copies 26,538 20,588
MPD solution helps maintain Geosciences ������������������19 b. Legitimate paid and/or requested distribution
wellbore integrity, reduce NPT �������������������������50 Regulatory Perspectives ���20 1. Outside county paid/requested 13,552 17,132
mail subscriptions stated
On a recent job in the Asia/Pacific region, Shell identi- Business Briefs ��������������69 on PS form 3541
fied the need for a managed pressure drilling (MPD)/ Advertisers’ Index �����������71 2. In-county paid/requested mail 0 0
subscriptions stated on PS form 3541
managed pressure cementing solution on two water Beyond the Horizon ����������72 3. Sales through dealers and 10,085 1443
injection wells. Previous drilling efforts in this section carriers, street vendors, counter
sales, and other paid or requested
had encountered issues with borehole instability and distribution outside USPS®
weak, faulted sand structures. It was also determined through further analysis of previous 4. Requested copies distributed 0 0
by other mail classes
non-productive time (NPT) and pressure-related events that the reservoir sections would through the USPS ®

benefit from MPD constant bottomhole pressure techniques. c. Total paid and/or 23,637 18,575
requested circulation
d. Non-requested distribution
• ENGINEERING, CONSTRUCTION, & INSTALLATION 1. Outside county nonrequested
copies stated on PS form 3541
893 866

FLNG market gears up for second wave of projects ��������������������������������������������52 2. In-county nonrequested copies 0 0
Despite the cancellation of several floating liquefaction projects and financing concerns stated on PS form 3541
3. Nonreqeusted copies distributed 0 0
for other FLNG projects, Westwood expects capex on FLNG units to total $42 billion over through the USPS by other
the 2019-2024 period. This represents a 172% increase compared to the total expenditure of classes of mail
4. Nonrequested copies distributed 522 775
$15.5 billion over the 2013-2018 period. outside the mail
e. Total nonrequested distribution 1,415 1,641

• PRODUCTION OPERATIONS
f. Total Distribution 25,052 20,216
g. Copies not Distributed 1486 372
Low shear valve simplifies separator debottlenecking ����������������������������������������54 h. Total 26,538 20,588
i. Percent Paid and/or 94.35% 91.88%
Typhonix AS, in close cooperation with Mokveld Valves BV, has developed a low shear flow Requested circulation
control system to optimize separation and debottleneck separators. The Typhoon Valve 16. Electronic Copy Circulation
System is a cyclone-based valve concept, using the principles of a vortex to control the flow a. Requested and Paid Electronic Copies 23,425 29,519
rate and pressure of a fluid. b. Total requested and paid print copies 47,062 48,094
+ requested/paid electronic copies
Gas turbine power solutions minimize weight, footprint on FPSOs ��������������������������58 c. Total requested copy distribution + 48,477 49,735
requested/paid electronic copies
Optimizing the lifecycle performance of floating, production, storage, and offloading (FPSO) d. Percent Paid and/or requested 97.08% 96.70%
vessels is highly contingent on the incorporation of topsides packages that can efficiently and reli- circulation
ably deliver the power to exploit resources in a range of water depths and operating conditions. In x I certify that 50% of all my distributed copies (electronic and print)
are legitimate requests or paid copies.
recent years, advances in the design and engineering of critical equipment, such as gas turbines, 17. Publication of Statement of Ownership: Will be printed
electric motors, and compressors have helped the industry meet these demands. in the November 2018 issue of this publication.
18. Signature and title of Editor, Publisher, Business
Manager, or Owner: Traci Huntsman, Manager Corporate Assets
• EQUIPMENT & ENGINEERING and Postal Compliance. Date: 10/01/2018.
Heave compensated rig floor enables MPD, helps reduce NPT �������������������������������������62 I certify that all information furnished on this form is true
and complete. I understand that anyone who furnishes false
Ballast control and rig stability simulator designed to provide eTraining ������������������������64 or misleading information on this form or who omits mate-
Electrical grounding a key design consideration for subsea booster pumps and umbilicals��66 rial or information requested on the form may be subject to
criminal sanctions (including fines and imprisonment) and/
Subsea charging station designed to enable AUV operations���������������������������������������68 or civil sanctions (including civil penalties).

2 WWW.OFFSHORE-MAG.COM | OFFSHORE NOVEMBER 2018

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1811OFF_3 3 11/5/18 10:20 AM
 • ONLINE

LATEST NEWS AVAILABLE AT OFFSHORE-MAG.COM VP AND GROUP PUBLISHING DIRECTOR

Paul Westervelt pwestervelt@pennwell.com
The latest news is posted daily for the offshore oil and gas industry covering tech-
CHIEF EDITOR/
nology, companies, personnel moves, and products. CONFERENCES EDITORIAL DIRECTOR
David Paganie davidp@pennwell.com
NEW ON-DEMAND WEBCAST
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Leveraging Composites for Safe, Cost-Effective Offshore Repairs Bruce A. Beaubouef bruceb@pennwell.com
Composite technologies are changing the way corrosion repairs are carried out on off- EDITOR-EUROPE
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OFFSHORE EVENTS
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 COMMENT •

Supply chain positioning for emerging wind market

DAVID PAGANIE, HOUSTON

THE OIL AND GAS SUPPLY chain is position- The US states in the northeast are providing the impetus for
ing for what appears to be an emerging US off- renewable development. For example, Massachusetts is targeting
shore wind market. There are at least 12 projects 40% market share for renewables for its energy mix by 2030.
in various stages of development in the US that State legislation requires 1,600 MW (800 MW already contracted)
could deliver about 10 GW of power by 2030. from offshore wind to reach the goal. New York requires 50%
The first US offshore wind farm, Deepwater of its energy from renewables by 2030, and a goal of 2,400 MW
Wind’s five-turbine, 30-MW Block Island offshore from offshore wind. New Jersey is also seeking 50% from renew-
Rhode Island, has been operating since 2016, and paves the way ables by 2030, but a higher target – 3,500 MW – from offshore
for likeminded developers. Plans have been filed with BOEM wind. On the West Coast, California is targeting an aggressive
for the construction and operations of two projects. One of 100% renewable energy by 2045. But there are more hurdles to
them, South Fork Wind, calls for 15 turbines offshore Rhode clear off the West Coast compared to the East Coast, including
Island that would connect to a grid in East Hampton, New York. water depths in California state waters that would require
Meanwhile, BOEM is planning to auction leases offshore Mas- floating wind installations. The first floating wind farm -
sachusetts on Dec. 18 of this year, and possibly acreage offshore Equinor-operated Hywind offshore Scotland - started production
New York in 2019. The results of the auction for acreage in in October 2017. It uses spar-based technology from oil and
Massachusetts state waters, where the wind resources and local gas. Wind developers will seek more floating installations (and
market demand are considered ideal for project development, guidance from oil and gas) as the industry matures and moves
will be a strong indicator of developer confidence in the market. farther out from shore and into deeper waters.
Nineteen companies have prequalified for the lease sale. Federal The states that have been lobbying for renewable develop-
regulators are also gauging interest in areas offshore California, ment see it as an opportunity for local job growth and other
for a possible future lease sale. economic benefits. Some of the states will give preference to
Oil and gas contractors, service companies, and suppliers developer bids that indicate a plan for local content develop-
have been investigating opportunities in wind to help fill back- ment. New York state regulators have said they will select
logs while awaiting activity in their core market to pick up. proposals based on price (70%), local content (20%), and effi-
There are many skills and services that are transferrable between ciency (10%).
offshore oil and gas and offshore wind. For wind, these include Indeed, navigating individual state requirements and even-
project management; site surveys; supply and installation of tually federal mandates is a top priority for developers, but it
wind farm foundations, substations, and cables; and operations is just one of the many obstacles that need to be addressed for
and maintenance. Deepwater Wind employed a combination market growth. Other offshore challenges include improving
of skills and services from both East Coast and Gulf Coast the permitting process, working with commercial and recre-
companies to deliver Block Island. A study by the Renewables ational fishing, viewshed, navigation and safety, environment
Consulting Group (RCG) forecasts more than $50 billion in impact, complying with the Jones Act for turbine installation,
capital requirements by 2030, led by projects offshore Rhode and bringing down costs to compete with onshore wind and
Island, Massachusetts, New York, and New Jersey (the results solar.
of this study were presented by Stephanie McClellan, director, Despite the challenges, there appears to be enough demand
Special Initiative on Offshore Wind, University of Delaware, at for renewables and legislative support for US offshore wind to
PennWell’s Offshore Wind Executive Summit in September in develop into a lucrative market. Globally, offshore wind is ex-
Houston). The bulk of the contracts will be for turbine supply cepted to grow from 17.6 GW in 2017 to 114.9 GW in 2030 (16%
and installation, followed by foundation supply and installation, CAGR), led by Europe and Asia, according to Bloomberg NEF.
and offshore substation and cable supply and installation. The energy transition is under way, and oil and gas operators
Developers will continue to employ service providers from oil and service companies will continue to leverage their experience
and gas until the supply chain is more developed near the from offshore to develop renewable resources.
market.
The offshore wind industry also will continue to seek knowl-
edge transfer and lessons learned from Europe where the market
is already established. Denmark-based Ørsted, through its recent
acquisition of Deepwater Wind, intends to take a leading role
in developing the US wind market, with its background in en-
gineering, construction, and operations of large-scale projects To respond to articles in Offshore, or to offer articles for publication,
in Europe. contact the editor by email (davidp@pennwell.com).

NOVEMBER 2018 OFFSHORE | WWW.OFFSHORE-MAG.COM 5

1811OFF_5 5 11/5/18 10:15 AM

 • DATA F1: WORLDWIDE OFFSHORE RIG COUNT AND UTILIZATION RATE
OCTOBER 2016 – SEPTEMBER 2018

14 100
Worldwide offshore rig
count and utilization rate 12 90
The offshore rig market has improved
somewhat in September, erasing most
10 80

Fleet utilization rate, %

of the decline suffered over the last cou-

Number of rigs
ple months. The total number of jackups,
semis, and drillships under contract grew 8 70
slightly this month to 434 rigs, which is
an increase of five units from last month. 6 60
At the same time, a couple more units
have been removed from the global fleet, 4 50
with the total supply falling by three to a
total of 769. With these changes, rig uti-
2 40
lization climbed by almost a whole point
to 56.4%. Meanwhile, the number of rigs
working has also had a bump this month, 0 30
Oct. Dec. Feb. Apr. Jun. Aug. Oct. Dec. Feb. Apr. Jun. Aug.
rising by six units to a total of 402. 2016 2017 2018

– Justin Smith, Petrodata by IHS Markit Total utilization Total supply Total under contract Working

Source: IHS Markit RigPoint

FPSO market making F2: FPSO SANCTION, SPLIT BY COUNTRY AND YEAR
strides again Cyprus
The global floating production market has 14 United Kingdom
stirred back to life, according to analyst Ireland
Rystad Energy. Last year brought some 12 Mexico
relief to the market, with six new FPSO or- Guyana
ders worldwide. With oil prices recovering 10 Brazil
to around $80/bbl this year, combined with Falkland Islands
technological advancements and reduced 8 Angola
Count

costs, momentum has picked up further. Nigeria

More than 30 FPSO projects could 6 Ghana
reach FID between 2019 and 2021. The Senegal
4 Vietnam
cost-cutting efforts of the downturn are a
major contributor to the projects’ favor- Malaysia
2 Indonesia
able economics. Fourteen projects have
China
a breakeven of less than $50/bbl, 15 proj-
0 Australia
ects come in between $50 and $70/bbl. 2019 2020 2021
Just three of the expected projects have
breakevens more than $70/bbl. The ana- Source: Rystad Energy DCube
lyst added that FPSO awards are set for a
strong comeback driven by Brazil. F3: MONTHLY OFFSHORE RIG CONTRACT BY
RIG TYPE AND AVERAGE CONTRACT TERM

80 1,600
Middle East to
continue driving jackup 70 1,400

contracting activity 60 1,200

Offshore contracting activity accelerated
Number of Contracts

Contract Term (Days)

in September with 33 new contracts an-

50 1,000
nounced, up 17 year-over-year, accord-
ing to analyst Evercore ISI. Of five term
40 800
contracts confirmed in September four
were for jackups including three in the
30 600
Middle East for ADNOC Offshore.
The analyst expects the UAE’s jackup
20 400
count will establish new peaks in the
coming quarter, as well as the Middle
10 200
East to continue driving jackup contract-
ing activity. Overall, Evercore counts 25
0 0
open tenders for jackups in the Middle Jan. July Jan. July Jan. July Jan. July Jan. July Jan. July
East for an average of 2.5 years, up 2013 2014 2015 2016 2017 2018
slightly from 24 tenders as of July despite
11 new term contracts awarded over the Jackup contract count Floater contract count
Average jackup term Average floater term
past three months.
Source: IHS Petrodata, Company Data, Evercore ISI Research

6 WWW.OFFSHORE-MAG.COM | OFFSHORE NOVEMBER 2018

1811OFF_6 6 11/5/18 10:15 AM

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 JEREMY BECKMAN
• GLOBAL E&P LONDON

NORTH AMERICA Titã, alongside QPI Brasil, while BP heads a consortium that
Planning is under way for two decommissioning projects includes Ecopetrol and CNOOC for the Pau-Brasil block. Petro-
offshore Nova Scotia, eastern Canada. ExxonMobil has con- bras exercised its preferential right to secure 100% of the Su-
tracted Heerema Marine Contractors to remove various struc- doeste de Tartaruga Verde block in the Campos basin.
tures from the seven-platform complex serving the Sable Off- ***
shore Energy Project, using the heavy-lift vessel Thialf. These Petrobras has contracted Aker Solutions to provide a subsea
will be transported across the Atlantic to northeast England production system for the ultra-deepwater Mero 1 project in
for disposal at Able Seaton Port on the River Tees. the northwestern part of the Libra block in the Santos basin,
In May, Encana shut down production from the Deep Panuke which will be tailored to presalt operations. It will include 12
gas field, 47 km (29 mi) west of Sable Island in 44 m (144 ft) vertical subsea trees and three topsides master control stations
water depth. Claxton will provide abrasive jet cutting equipment for installation on the FPSO Guanabara. All deliveries are
to support the harsh-environment jackup Noble Regina Allen scheduled for 2020, with installation spread between 2020 and
on the well P&A program, due to start in January 2020. 2023. The FPSO will process up to 180,000 b/d of oil and 12
*** MMcm/d of gas.
MODEC has a letter of intent from Eni to supply and operate An extended well test has finished on the Mero field from
an FPSO in Offshore Area 1, 10 km (6.2 mi) from the Mexican the FPSO Pioneiro de Libra, which was also adapted to re-inject
coast in 100 m (328 ft) of water, under a 15-year charter due the produced gas. The production well flowed up to 58,000
to start in 2021. The scope includes construction and instal- boe/d, with results reducing the block partners’ uncertainties
lation of the vessel, which will feature oil processing capacity over the reservoir. The vessel was due to mobilize to a new
of 90,000 b/d and storage for 900,000 bbl of crude. MODEC location on the concession for further trials. Petrobras expects
subsidiary SOFEC will design and supply the disconnectable to commission three further FPSOs for the block over the next
tower yoke mooring system. few years, with similar capabilities to the Guanabara.

SOUTH AMERICA WEST AFRICA

Kosmos Energy’s first exploration well offshore Suriname was BP has contracted KBR to perform front-end engineering design
water-bearing. Pontenoe-1 was targeting oil in a stratigraphic (FEED) for Phase 1 of the Tortue gas/condensate field hub/
trap in late Cretaceous reservoirs in block 42, 280 km (174 mi) terminal development offshore Senegal and Mauritania. KBR
northwest of Paramaribo in 2,497 m (8,192 ft) of water. The is managing work on the quarters and utilities, including the
company and partners Hess and Chevron plan to resume telecoms system. The contract could be upgraded later to
drilling in 2020. include engineering, procurement, and construction
*** management.
Brazil’s regulatory agency ANP awarded all four deepwater ***
blocks offered under the country’s 5th production sharing Aker Energy has contracted the drillship Maersk Viking to drill
round. The anticipated programs should raise $9.88 billion/yr the Pecan-4A appraisal well in the Deepwater Cape Three
for the government, states and municipalities, according to Points block offshore Ghana. The program, due to start in the
ANP director-general Décio Oddone. current quarter, could last up to 35 days. Aker Energy also
In the Santos basin, Shell will operate the Saturno block in assigned Halliburton and Exceed respectively the associated
partnership with Chevron and BP. ExxonMobil will operate drilling services and well design.
Subsea 7 and NOV subsidiary APL are jointly working on
construction and installation of the new buoy turret loading
system that Tullow Oil has commissioned for the Jubilee field
FPSO in 1,000 m (3,281 ft) water depth offshore Ghana. The
scope includes suction piles and two offloading lines.
Ghana’s government has reportedly launched the country’s
first offshore licensing round, with bids to be invited for six
blocks next year.
***
VAALCO Energy and its partners have secured a 10-year ex-
tension to three exclusive exploitation areas under the Etame
Marin PSC offshore Gabon. They have agreed to a new phase
of drilling comprising two development wells and two appraisal
wells.
Blocks awarded under Brazil’s 5th production sharing round.
(Courtesy ANP)

8 WWW.OFFSHORE-MAG.COM | OFFSHORE NOVEMBER 2018

1811OFF_8 8 11/5/18 10:15 AM

 GLOBAL E&P •

*** drilling program for Total offshore Bulgaria, scheduled to end

Namibia’s Ministry of Environment and Tourism has granted in early January.
Eco (Atlantic) Oil & Gas an environmental clearance certificate Total has also contracted a consortium of Saipem, Boshelf
to drill an exploration well on the Osprey prospect in offshore LLC, and Star Gulf FZCO to engineer, supply and install the
block PEL 30. The company and its partners have identified SURF facilities for the Absheron field development in the Azeri
prospectivity in a Cretaceous channel and fan system. sector of the Caspian Sea. Facilities will include a single 12-in.
production flowline and a main umbilical, both 34 km (21 mi)
MEDITERRANEAN SEA long.
BP, Eni, and Libyan state oil company NOC have signed an
agreement under which Eni will acquire a 42.5% operated interest MIDDLE EAST
in a BP-led exploration and production-sharing agreement. This ADNOC LNG has approved an $860-million investment for the
includes the offshore contractual area C in the Sirt basin. The second phase of Abu Dhabi’s Integrated Gas Development
Italian major has existing E&P activities and production infra- Expansion (IGD-E) project. This will take 54 months to complete
structure nearby – the agreement should lead to a resumption and will add 245 MMcf/d of associated gas to the 1.4 bcf/d of
of exploration in the region. gas from the offshore Umma Shaif field sent via Das Island to
*** ADNOC Gas Processing’s Habshan gas facilities. Phase 1 of
In the Adriatic Sea off eastern Italy, Eni has contracted Shelf IGD-E, completed this summer, included construction of a new
Drilling’s jackup Key Singapore for a two-year drilling program, 117-km (73-mi) offshore gas line.
scheduled to begin around mid-2019. Baker Hughes, a GE company has an agreement with the
*** state oil company under which it will pay $550 million to acquire
Energean expected to submit an environmental and social a 5% stake in ADNOC Drilling – the aim being to develop the
impact assessment for a $60-million development of the latter into a fully integrated drilling and well construction pro-
10.5-MMbbl Katakolo field offshore western Greece, which could vider. BHGE and ADNOC plan to jointly pursue more competitive
be followed by an investment decision by year-end. In that case, well completion times and improved drilling efficiencies.
first oil should follow in 2020. ***
*** Qatar Petroleum will commission a fourth liquefaction train to
The harsh-environment jackup Rowan Norway is due to start a increase capacity of the Qatar LNG expansion project by around
two-well contract shortly for Turkish Petroleum in the Mediter- 32 MMt/yr of LNG, supplied by gas from the offshore North
ranean Sea. The program could last up to 140 days. Field. This follows strong recent results from offshore appraisal
drilling and testing. The company may by now have awarded
BLACK SEA/CASPIAN SEA the EPCI contract for the associated new wellhead platform
The drillship Noble Globetrotter II may have started an exploratory jackets.

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1811OFF_9 9 11/5/18 10:15 AM

 • GLOBAL E&P

*** Aqualis Engineering has completed supervision of the flo-

Saudi Aramco and Bahrain Petroleum Company (BAPCO) atover installation of the REGAS topsides for the Bahrain LNG
have jointly commissioned the new AB-4 pipeline between the import terminal project. The 7,000-metric ton (7,716-ton) top-
two countries. The 122-km (69.6-mi), 30-in. pipeline, which sides, built in Thailand and transported on the semisubmersible
includes a 42-km (26-mi) offshore segment, can transport up vessel Zhenhua 15, was mated to the pre-installed jacket in 17
to 350,000 b/d from Aramco’s Abqaiq complex to a refinery in m (56 ft) water depth, 4 km (2.5 mi) offshore Bahrain, under a
Bahrain. program managed by APMC.

EAST AFRICA
Mozambique’s government has awarded Eni operatorship of
offshore block A5-A in the deepwater Northern Zambezi basin,
1,500 km (932 mi) northeast of Maputo. The 5,133-sq km (1,982-
sq mi) concession is in water depths of 300-1,800 m (984-5,905
ft) in an unexplored area. Eni’s partners are Sasol and state-
owned ENH.

ASIA/PACIFIC
ONGC has awarded the subsea development of block DWN-98/2
in the Krishna Godavari basin off eastern India to a consortium
of BHGE, McDermott International, and L&T Hydrocarbon
Engineering. This covers all the subsea production systems,
Floater installation of the REGAS topsides offshore Bahrain. including 34 deepwater trees and SURF installations in water
(Courtesy GS E&C) depths of 300-3,200 m (984-10,500 ft). BHGE will provide most
of the subsea equipment, with L&T contributing some of the

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 GLOBAL E&P •

manifolds, while McDermott will handle AUSTRALASIA

the offshore installations. ConocoPhillips has agreed to sell its 30% interest in the Greater Sunrise fields in the
*** Timor Sea to the government of Timor-Leste for $350 million. Analyst Wood Mackenzie
Woodside Energy has successfully ap- expected the associated LNG development to now go forward through an FPSO,
praised its Shwe Yee Htun gas discovery processing the condensate, and construction of a new onshore liquefaction plant and
in the A2 block offshore Myanmar. Fol- associated infrastructure. The government sees the project as a priority to replace
lowing the recently completed second declining production from the offshore Bayu Undan field. •
well on the structure, partner Total esti-
mates combined resources from this and
the earlier Pyi Thit find in the same block
in the range of 2-3 tcf. Total will assume
operatorship for the development.

***
PTTEP has submitted bids for the giant
Bongkot and Erawan fields in the Gulf of
Thailand, which the Thai government
plans to re-license under new long-term
concession agreements. Together the
fields account for 60% of the country’s
gas production. PTTEP is bidding for
Bongkot on a sole basis, having been in-
volved in operations for the past 25 years,
and in partnership with Mubadala Pe-
troleum for Erawan.
***
Gazprom Neft and Mitsubishi plan to
co-operate on development of the shal-
low-water Ayashky license block in the
Sea of Okhotsk offshore northeast Russia.
The block includes last year’s Neptune HELPING TO DEVELOP A SAFE AND
oil field discovery, in 62 m (203 ft) water
depth. SKILLED OIL AND GAS WORKFORCE
• Driving global standards and
qualifications
• Ensuring safety training is delivered
to industry standards
• Assessing competence against industry
approved criteria

Drilling in the Ayashky license block off • Developing competency frameworks

Sakhalin Island. (Courtesy Gazprom Neft) alongside industry and local government

***
CNOOC has started production from the
250,000 people train to OPITO standards each year at one of
Penglai 19-3 oilfield comprehensive ad-
over 200 OPITO approved training providers in 45 countries
justment project in the south-central
Bohai Sea offshore China. The facilities,
which include two wellhead platforms
and a central processing platform, are 80
km (50 mi) southeast of Penglai in 27-33
www.opito.com
m (88-108 ft) of water, and are connected
to existing infrastructure serving Penglai
19-3.

NOVEMBER 2018 OFFSHORE | WWW.OFFSHORE-MAG.COM 11

1811OFF_11 11 11/5/18 10:15 AM

 JEREMY BECKMAN
• OFFSHORE EUROPE LONDON

GLENDRONACH OPENS SHETLANDS PLAY Shell’s 30% farm-in to Cambo has galvanized the project, and
Almost 200 exploratory wells have been drilled in UK waters the company has also sanctioned a second subsea tieback this
over the past 10 years, according to Westwood. The analyst’s year through its Shearwater HP/HT gas/condensate production
2008-17 UK Offshore Exploration Performance report found complex in the UK central North Sea. The Arran field, discovered
that 117 companies had been involved targeting 26 plays and in 1985, will be tied in via four wells exporting 21,000 boe/d and
discovering 1.5 Bboe of commercial resources. Of these, 900 a new 50.4-km (31 mi) pipeline to the Shearwater platform. In
MMboe have since been sanctioned for development. June, Shell committed to a tieback of the Fram field (12,400
At peak, 32 wells were drilled across the sector in 2008, boe/d) via another new pipeline to the Starling satellite and
proving a total of 471 MMboe, while since the oil price fall in existing infrastructure connected to the platform.
2014 activity has stabilized at around 15 wells per year. The However, the company has followed Chevron’s lead in exiting
most active explorer during the period was Maersk Oil & Gas upstream operations in the Danish North Sea, agreeing to sell
(since acquired by Total) drilling 20 wells and discovering the its 36.8% share in the DUC to Altinex, a subsidiary of Norwegian
250-MMboe Culzean field in the central North Sea. Otherwise, independent Noreco, for $1.9 billion.
only BP and Dana Petroleum proved net resources of over 100
MMboe. CAPE VULTURE SET FOR NORNE TIEBACK
This year, although UK exploratory activity has been subdued, Appraisal drilling has finished of the 2017 Cape Vulture oil
two commercial finds were reported by October led by Total’s discovery off the Nordland Coast in the Norwegian Sea. Operator
1-tcf Glendronach gas discovery west of Shetland in a formation Equinor assesses recoverable resources at 50-70 MMbbl: this
below the Edradour field (a new syn-rift Cretaceous turbidite is more than twice the remaining oil due to be produced through
play). Total said it would pursue a swift development through the Norne field FPSO, 7 km (4.3 mi) to the southeast, which
the Laggan-Tormore subsea pipeline system. Kevin Swann, would probably host the development.
Wood Mackenzie’s senior research analyst, North Sea said the Norne came onstream in 1997 and through progressive ex-
find could account for 10% of the UK’s gas during its early years
of production.

EQUINOR TO TAKE ON ROSEBANK

Another major west of Shetland project could finally go forward
after Chevron agreed to sell its 40% operated interest in the
Rosebank field to Equinor. Chevron discovered the field in 2004,
close to the median line with the Faroe Islands in 1,100 m (3,609
ft) of water, the deepest for any UK find to date, with estimated
recoverable reserves of over 300 MMboe.
However, the company has struggled to come up with an
economic development solution despite sanctioning studies
based on an FPSO, due partly to the water depth and the locally
rough environment. It has also been clear that the North Sea
area is no longer a strategic priority, having recently agreed to
The Norne FPSO. (Photo Anne-Mette Fjoerli, courtesy Equinor)
sell its 12% stake in the Danish Underground Consortium (DUC)
responsible for much of Denmark’s production to Total.
Equinor had previously been a partner in Rosebank in its ploration and satellite tie-ins in the area, the company has
Statoil guise. The company’s UK Country Manager Al Cook said managed to sustain economic production. Cape Vulture, which
his company had “a proven track record of high value field will likely extend the life of the facilities beyond 2030, has also
developments across the North Sea.” Wood Mac’s Swann pointed proven a new play in the Nordland Ridge area – Equinor plans
to the company’s recent success in re-scoping another high-cost, a well on another prospect in the region next year.
harsh-environment project, Johan Castberg in the Barents Sea. This is a period of intense development activity for the com-
Siccar Point Energy has appointed Crondall Energy to assess pany across the Norwegian sector and will partly balance the
FPSO options for the Cambo oilfield, 30 km (18.6 mi) southwest books by selling its 77.8% interest in the King Lear gas/conden-
of Rosebank following a successful recent well test. The field, sate discovery in the southern Norwegian North Sea to Aker
proven by Hess in 2002, is thought to hold in-place reserves of BP for $250 million. Aker BP sees potential for a tieback to its
600 MMbbl. Five wells have been drilled and the latest, which Ula complex 50 km (31 mi) to the north, also providing extra
concludes the appraisal phase, has been suspended and will be volumes of gas to support increased oil recovery from Ula. If
incorporated into the field development plan. In addition, the project goes ahead, it could represent net resources to the
Crondall is working on pre-FEED technical assurance studies company of over 100 MMboe. •
for the subsea facilities.

12 WWW.OFFSHORE-MAG.COM | OFFSHORE NOVEMBER 2018

1811OFF_12 12 11/5/18 10:15 AM

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1811OFF_13 13 11/5/18 10:15 AM

 BRUCE BEAUBOUEF
• GULF OF MEXICO HOUSTON

BP STARTS UP LATEST THUNDER HORSE PETROBRAS, MURPHY TO FORM JOINT VENTURE

EXPANSION PROJECT Murphy Exploration & Production Company-USA has entered
BP has started up the Thunder Horse Northwest Expansion into a definitive agreement to form a new joint venture company
project in the deepwater Gulf of Mexico, four months ahead of with Petrobras America Inc. (PAI).
schedule and 15% under budget. Both companies will contribute all their current producing
Originally planned for start-up in early 2019, the project adds Gulf of Mexico assets to the joint venture, which will be owned
a new subsea manifold and two wells tied into existing flowlines 80% by Murphy and 20% by PAI. The transaction excludes ex-
2 mi (3.2 km) north of the Thunder Horse platform. First oil was ploration blocks from both companies, except for PAI’s blocks
achieved 16 months after being sanctioned. that hold deep exploration rights. The transaction is expected
The new project is expected to boost production at Thunder to close by the end of the year.
Horse by an estimated 30,000 boe/d at its peak, taking gross Murphy will pay cash consideration of $900 million to PAI,
output to more than 200,000 boe/d. subject to normal closing adjustments. Additionally, PAI will
“This latest expansion of Thunder Horse is another important earn an additional contingent consideration up to $150 million
milestone in our efforts to maximize value from our assets in if certain price and production thresholds are exceeded begin-
the Gulf,” said Starlee Sykes, regional president of BP’s Gulf of ning in 2019 through 2025. Also, Murphy will carry $50 million
Mexico and Canada business. “Over the past five years we’ve of PAI costs in the St. Malo field if certain enhanced oil recovery
driven up production through safe and reliable operations and projects are undertaken. Upon closing, Murphy expects to fund
bringing on new deepwater projects in a more efficient and the transaction through a combination of cash-on-hand and
standardized way. All this hard work is now delivering results. the company’s senior credit facility.
Our Gulf of Mexico business is thriving.” Petrobras said that the joint venture will have an estimated
It comes after two other major field expansions at Thunder average production of 75,000 boe/d in 4Q 2018, and will comprise
Horse in recent years. In 2017, an expansion of Thunder Horse’s the following assets:
south field – a four-well tieback to the floating hub – boosted • Deepwater fields: Cascade, Chinook, St. Malo, Lucius and
gross production at the field by more than 50,000 boe/d. In 2016, Hadrian North, Cottonwood, Hadrian South, Dalmatian,
BP started up a major water injection project at Thunder Horse Front Runner, Clipper, Habanero, Kodiak, Medusa and Thun-
to further enhance oil production at the field. der Hawk.
Developed with partner ExxonMobil, the Thunder Horse • Shallow-water fields: South Marsh Island 280, Garden Banks
platform is in more than 6,000 ft (1,829 m) of water and began 200/201 and Tahoe.
production in June 2008. It has the capacity to handle 250,000
b/d of oil and 200 MMcf/d of natural gas (gross). EXXONMOBIL REPORTEDLY CONSIDERS
BP’s net average daily production in the Gulf of Mexico has DIVESTING ASSETS
increased from less than 200,000 boe/d in 2013 to more than ExxonMobil is reportedly considering divesting a number of its
300,000 boe/d and is set to grow further with the addition of US Gulf of Mexico oil assets, according to multiple sources.
the Mad Dog Phase 2 platform in 2021 and other upcoming Sources familiar with the matter were quoted by Reuters as
projects. saying that the sale plan is the result of the US-based Exxon-
Mobil’s review of its portfolio. Expected to take place in 2019,
the sale would enable the company to concentrate on offshore
areas such as Guyana and Brazil and onshore in the Permian
basin of Texas.
According to Reuters, a few companies have been approached
by ExxonMobil to determine their ‘potential interest’ in acquiring
the oil assets. The sale could include the disposal of deepwater
assets in the Gulf of Mexico that produce nearly 50,000 b/d of
oil.
An ExxonMobil spokesperson told Reuters: “ExxonMobil
continually reviews its assets for their contribution toward
meeting the company’s operating needs, financial objectives
and their potential value to others. We remain committed to
conducting business in the US Gulf region, as we have for more
than 100 years.”
BP says that its Thunder Horse Northwest Expansion project The company’s assets in the Gulf of Mexico include the Julia
adds a new subsea manifold and two wells tied into existing
flowlines about two miles north of the Thunder Horse platform.
oil field and Hadrian South natural gas field in which it owns
(Courtesy BP) 50% and 46.7% stakes, respectively. It also holds 9% of Heidelberg
field and 23.3% of the Lucius oil and gas fields. • 

14 WWW.OFFSHORE-MAG.COM | OFFSHORE NOVEMBER 2018

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 JESSICA STUMP
HOUSTON SUBSEA SYSTEMS •

AKER SOLUTIONS GARNERS ORDERS BHGE’s scope will include subsea trees, manifolds, controls,
FROM PETROBRAS, CNOOC connection systems, subsea production system installation
Petrobras has contracted Aker Solutions to provide a subsea tools and services, and flexible risers and flowlines, umbilical
production system and associated services for the Mero 1 project and topsides controls. It will also provide pre-commissioning
in the presalt Santos basin offshore Brazil. The equipment will services for additional phases of the project.
comprise 12 vertical subsea trees tailored to Brazil’s presalt, McDermott will transport and install all SURF/SPS facilities
four subsea distribution units, three topsides master control using its engineering and other resources in Kuala Lumpur,
stations for the Mero 1 FPSO, and spare parts. Malaysia and Chennai, India, and the Derrick Barge 30, Lay
In addition, Aker Solutions will provide installation and Vessel North Ocean 105, and Lay Vessel 108.
commissioning support services. All work will be managed by Following an agreement signed in 2016, LTHE and BHGE
the company’s subsea manufacturing complex in São José dos will fabricate manifolds for the first time in India as part of
Pinhais and its subsea services base in Rio das Ostras. Equipment the project.
deliveries are scheduled for 2020, with installations spread The subsea award is said to be the largest of its type ever
between 2020 and 2023. awarded by ONGC. Delivery of the gas system is scheduled
The subsea production system will be hooked up to the FPSO for 2020 and of the oil system for 2021.
Guanabara, which is due to come onstream on the ultra-deep-
water Mero field in 2021, with capacity to process up to 180,000 I-TECH OFFERING SMALLER INSPECTION ROVS
b/d of oil and 12 MMcm/d of gas. Subsea 7 subsidiary i-Tech
Mero is in the northwestern part of the Libra block, 180 km Services has extended its
(112 mi) south of Rio de Janeiro. Petrobras’ partners in the Libra underwater inspection and
area are Shell, Total, CNPC and CNOOC, with Pre-Sal Petróleo maintenance service to in-
managing the production-sharing contract. clude new mini ROVs for
Elsewhere, CNOOC has contracted Aker Solutions to provide performing smaller scopes
the subsea production system and umbilicals for the Lingshui of subsea work. These are
17-2 gas field in the South China Sea. Located off the Hainan said to be quick to deploy
Province, Lingshui 17-2 is in water depths of about 1,500 m and easily transported to
(4,921 ft). The contract is valued at more than NOK1.7 billion the offshore location by he-
($205 million). licopter or aircraft.
The vLBV300 mini ROV is said
The subsea production system for the Lingshui 17-2 field The mini ROVs are said to be quick to deploy and easily
consists of 11 horizontal subsea trees, four manifolds, topsides to offer high maneuverabil- transported. (Courtesy i-Tech
and subsea control system, and a vertical tie-in connection ity and a power-to-weight Services)
system. The work scope also includes more than 70 km (43 mi) ratio that allows them to
of static and dynamic umbilicals, linking the subsea development carry small tools and manipulators that can be operated in
to a new semisubmersible platform. strong currents. They can also be mobilized rapidly and man-
The manifolds will be manufactured and tested locally by ually from any platform, FPSO, barge or vessel of
China Offshore Oil Engineering Co. The services for installation opportunity.
and commissioning will also be executed in China.
The project will involve the company’s facilities in Malaysia, TECHNIPFMC WINS LIZA PHASE 2 CONTRACT
Norway, and the UK. The delivery for the subsea production ExxonMobil has commissioned TechnipFMC for the engineer-
system and umbilicals will be from the second half of 2019 to ing of the subsea system for the proposed Liza Phase 2 project
2020. offshore Guyana. Following engineering and subject to requisite
government approvals, project sanction, and an authorization
CONTRACTOR TRIO TO MANAGE ONGC’S to proceed with the next phase, TechnipFMC will then man-
LARGEST DEEPWATER PROJECT ufacture and deliver the subsea equipment. Delivery would
ONGC has awarded a consortium of Baker Hughes, a GE com- include 30 enhanced vertical deepwater trees and associated
pany, McDermott International, and L&T Hydrocarbon Engi- tooling, as well as eight manifolds and associated controls
neering (LTHE) the subsea contract for development of block and tie-in equipment.
DWN-98/2 in the Krishna Godavari basin offshore eastern India. In support of this project, the company will continue hiring
This is said to be ONGC’s most extensive deepwater project to and training Guyanese engineers.
date. The Liza Phase 2 development is approximately 193 km
The award covers the supply of all subsea production systems (120 mi) offshore Guyana on the Stabroek block in water
(SPS), including 34 deepwater trees, and installation of subsea depths of 1,500 m (4,921 ft) to 1,900 m (6,234 ft). ExxonMobil
umbilicals, risers, and flowlines in water depths of 300-3,200 m affiliate, Esso Exploration and Production Guyana Ltd., is the
(984-10,500 ft). operator. •

NOVEMBER 2018 OFFSHORE | WWW.OFFSHORE-MAG.COM 15

1811OFF_15 15 11/5/18 10:15 AM

 JESSICA STUMP
• VESSELS, RIGS, & SURFACE SYSTEMS HOUSTON

DRILLING CONTRACTOR CONSOLIDATION CONTINUES The transaction is subject to approval by the shareholders of
Ensco plc and Rowan Companies plc have entered into a definitive Ensco and Rowan and regulatory authorities, as well as other
transaction agreement under which Rowan will combine with customary closing conditions. In addition, the transaction will be
Ensco in an all-stock transaction. The definitive transaction agree- subject to court approval pursuant to a UK court-sanctioned
ment was unanimously approved by each company’s board of scheme of arrangement. The transaction is not subject to any fi-
directors. The Saudi Aramco partner to the ARO Drilling joint nancing conditions. They anticipate that the transaction will close
venture has consented to the combination. during the first half of 2019.
Under the terms of the transaction agreement, Rowan share- Leslie Cook, principal analyst, Wood Mackenzie said: “What
holders will receive 2.215 Ensco shares for each Rowan share. Upon makes a company like Rowan particularly interesting for Ensco is
closing, Ensco and Rowan shareholders will own approximately the opportunity to further high-grade their growing portfolio with
60.5% and 39.5%, respectively, of the outstanding shares of the premium assets and expand their footprint in key markets such
combined entity. as Middle East, Latin America, Europe, and US Gulf of Mexico.
“Once combined, Ensco-Rowan will have the second-largest
TOP OWNERS LISTED ON THE US EXCHANGES BY FLEET VALUE USD Bn
floating rig fleet, with nearly 90% consisting of generation VI and
$9.00
$8.38
$8.09
VII assets. These are the rigs that are most desired by operators
$8.00
globally, as they offer the best capabilities and flexibilities for various
Total fleet value Bn, USD

$7.00
deepwater drilling programs around the world.
$6.00
“The combined company will also become the largest player in
$5.00 $4.85
$4.48 the jackup sector. Nearly 40% of the combined portfolio will consist
$4.00
$3.32 of ultra-harsh and modern harsh-environment assets.”
$3.00
According to analyst VesselsValue, this acquisition makes Ensco
$2.0
the largest MODU owner by value, with a total fleet (live, on order,
$1.00
and joint ventures) worth $8.4 billion. This knocks Transocean
$0.00
ENSCO & Transocean Inc. Seadrill Seaspan Teekay LNG from the top spot which it held for a month due to its merger with
Rowan & Ocean Rig Management Corporation Partners
Companies, Inc. Ocean Rig.
Source: Vessels Value
LANCASTER FPSO DEPARTS DUBAI
The upgraded FPSO Aoka Mizu has departed Drydocks World in
The combined company’s rig fleet will consist of 28 floaters Dubai following sea trials and will now sail to Rotterdam for com-
(drillships and semisubmersibles) and 54 jackups. Twenty-five of pletion of final work before proceeding to the Lancaster oil field
the 28 floaters are ultra-deepwater rigs capable of drilling in water west of Shetland. Hurricane Energy will use the vessel for its early
depths of more than 7,500 ft (2,286 m), with an average age of six production system on Lancaster.
years. The vessel underwent a series of repair and life extension works
The 54-rig jackup fleet will include 38 units that are equipped at the Dubai shipyard. According to Drydocks World, its teams
with increased leg length, expanded cantilever reach and greater fabricated and installed more than 1,000T of structural steel, 1,800
hoisting capacity. Among its jackup fleet are seven ultra-harsh pipe spools (including Duplex), and 55 km (34 mi) of cables on the
environment units and nine additional modern harsh-environment FPSO. •
rigs.
Ensco shareholders will gain exposure to the ARO Drilling joint
venture and ultra-harsh environment jackups, along with a presence
in Norway. Rowan shareholders will gain access to Ensco’s rela-
tionships with large deepwater customers and wider geographic
footprint, which includes a presence in Brazil, West Africa, Southeast
Asia and Australia, along with a versatile semisubmersible fleet.
Upon closing, Carl Trowell will become executive chairman,
Tom Burke will serve as president and CEO, and Jon Baksht will
serve as senior vice president and CFO. The remaining executive
management team for the combined company will be named later
and will comprise executives from both Ensco and Rowan. In
addition, the board of directors will include Trowell and Burke,
plus five additional members from Ensco’s current board and four
additional members from Rowan’s current board. Sail away of the FPSO Aoka Mizu from Drydocks World in Dubai.
The combined company will be domiciled in the UK, and senior (Courtesy Drydocks World)
executive officers will be in London and Houston.

16 WWW.OFFSHORE-MAG.COM | OFFSHORE NOVEMBER 2018

1811OFF_16 16 11/5/18 10:15 AM

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 BRUCE BEAUBOUEF
• DRILLING & PRODUCTION HOUSTON

OFFSHORE EXPLORATION F1: UK EXPLORATION WELL COMPLETIONS,

PICKING UP IN SELECT UK TECHNICAL SUCCESS RATE
NORTH SEA BASINS
Westwood has identified a total of 199 35 100
exploration wells drilled across the UK 90
30
continental shelf (UKCS) over the past 80
10 years, in its report, UK Offshore Ex- 25 70

Success rates
ploration Performance 2008-2017.

Wells drilled
20 60
The wells, drilled by 117 companies,
targeted 26 plays and discovered 1.5 Bboe 50
15
of commercial resources, of which 900 40
MMboe have since been sanctioned for 10 30
development. On average, exploration 20
proved 150 MMboe/yr at a finding cost 5
10
of $5.1/boe, with 22% of the UK’s produc-
0 0
tion replaced through these finds.  2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
At peak in 2008, 32 wells and around Wells drilled TSR CSR
471 MMboe were discovered, but this
dipped to an average of 15 wells in Source: Westwood Atlas and Wildcat
2012/2013 with only 10 MMboe/yr
discovered.
After the oil price drop of 2014, activity F2: OIL AND GAS VOLUMES DISCOVERED AND HYDROCARBONS
stabilized at an average of 15 exploration PER WELL, 2008-2017
wells per year, with commercial success
rates reviving to a high of 45% in 2016, 500 16
450

Hydrocarbons per well (mmboe)

likely due to selective drilling of improved 14
Oil and gas found (mmboe)

prospect inventories. Last year, the ad- 400

12
ditional volumes discovered totaled 180 350
MMboe. 300 10
Maersk was the most active explorer
250 8
during the period (20 exploration wells)
and proved the highest net resources 200 6
(215 MMboe) due to its 66% share of the 150
4
250-MMboe Culzean discovery, drilled 100
in the UK central North Sea in 2008. Oth- 50 2
erwise, only BP and Dana Petroleum 0 0
proved more than 100 MMboe net re- 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
sources. Five of the most active explorers Oil found Gas found Hydrocarbons per well
had finding costs of <$2/boe.
Source: Westwood Atlas and Wildcat
So far, three exploration wells have
been completed in the first nine months
of 2018, Westwood claims, of which two Glendronach shows that high-impact UK discoveries are still possible, the report
are commercial discoveries. Total’s 1-tcf concludes, 50 years into the history of UKCS exploration.
Glendronach is in the emerging syn-rift
Cretaceous turbidite play west of Shet- TECHNOLOGY INVESTMENTS PAY OFF IN DEEPWATER MERO EWT
lands and is the second largest discovery Petrobras has completed an extended well test (EWT) on the Mero field in the Libra
in recent years after Culzean. block in the presalt Santos basin. This had started last November from the FPSO
Over the next 18 months, Westwood Pioneiro de Libra, which was the company’s first EWT-dedicated program equipped
believes 17 exploration wells will be to inject the gas produced. During the tests, the production well delivered 58,000
drilled across the UKCS, targeting more boe/d, which the company described as “a great result in ultra-deepwaters.” The other
than 2 Bboe unrisked resources, with aims, all achieved, were to obtain high-quality data and reduce uncertainties over the
more than half west of Shetland, and a reservoir, to allow accelerated deployment of up to four full-scale production systems
further 600 MMboe-plus in the central on Libra in the next few years, each capable of producing up to 180,000 b/d of oil. •
North Sea.

18 WWW.OFFSHORE-MAG.COM | OFFSHORE NOVEMBER 2018

1811OFF_18 18 11/5/18 10:15 AM

 GEOSCIENCE •

SCHLUMBERGER, TGS TO INCREASE DATA COVERAGE of Petroleum and Energy, it will allow both countries to map
IN THE CENTRAL GULF OF MEXICO the resource potential up to, and along the maritime delimitation
TGS and Schlumberger have announced a new multi-client nodal line in the Barents Sea.
seismic project in the US Gulf of Mexico. The project, named Currently they are each mapping resources on their respective
“Amendment,” will comprise acquisition of a 2,350-sq km (907-sq side of this line. Under the new accord seismic vessels from
mi) multi-client seismic survey in the Mississippi Canyon and both countries will also be allowed to cross the delimitation
Atwater Valley protraction areas. This area includes open acreage, line and use their seismic equipment within 5 km (3.1 mi) of
existing producing assets, and new discoveries. the continental shelf of the other party.
This should allow both sides to acquire good quality seismic
up to, and along the delimitation line, which could be important
should an oil and gas discovery extend across the border. The
2010 agreement states that any such discoveries will be subject
to unitization.

TWO SHEARWATER VESSELS WIN 3D SEISMIC WORK

Shearwater GeoServices has won contracts to acquire 3D seismic
surveys in the Mediterranean Sea and offshore Southeast Asia,
both due to start soon.
The Polar Empress will perform the Mediterranean survey,
covering 1,300 sq km (502 sq mi), over a two-month period.
The Polar Duchess will acquire more than 8,000 sq km (3,089
sq mi) for two separate Southeast Asia programs, lasting five
months in total. •

The Amendment project will comprise acquisition of a 2,350-sq km

(907-sq mi) multi-client seismic survey in the Mississippi Canyon and
Atwater Valley protraction areas. (Map courtesy TGS)

Seismic data will be acquired using Fairfield Geotechnologies

4C nodal acquisition technology with operations expected to
start in 4Q 2018. The companies will apply their full azimuth
processing expertise and expect to deliver final data to customers
in 1Q 2020.
Maurice Nessim, president, WesternGeco, Schlumberger, add-
ed: “Schlumberger and TGS have built up extensive geophysical
and geological knowledge in this prolific part of the US Gulf of
Mexico. In line with the WesternGeco asset-light strategy, the
application of nodal seismic technology and state-of-the-art
imaging techniques will help to accelerate hydrocarbon discovery,
development, and production for our clients.
“This unique dataset will provide a step change in illuminating
complex subsurface structures and help E&P companies to
maximize the value of their producing assets and rejuvenate their
exploration portfolios. This highly integrated project will combine
well log data, high-quality orthogonal WAZ and new nodal mea-
surements to provide foundations for the first industry-funded
regional nodal survey in the deepwater Gulf of Mexico.”
This survey is supported by industry prefunding.

NORWAY, RUSSIA SANCTION PARTIAL CROSS-BORDER

BARENTS SEA SEISMIC STUDIES
Russia and Norway have signed an agreement on mutual rights
to acquire seismic in the Barents Sea. This is a follow-up to the
signing of the Delimitation Agreement in September 2010.
According to Kjell-Børge Freiberg, the Norwegian Minister

NOVEMBER 2018 OFFSHORE | WWW.OFFSHORE-MAG.COM 19

1811OFF_19 19 11/5/18 10:15 AM

 • REGULATORY PERSPECTIVES

Master service agreements should

address cyber security risks
GRADY HURLEY, JONES WALKER LLP

THE UNITED STATES IS BECOMING an exporter of energy companies and contractors have begun incorporating best
products, enabled by the successful exploration and production practices to avoid well control problems and other incidents.
of onshore shale deposits and offshore deepwater prospects for The risks of automation, including cyber security, are acknowl-
oil and gas. edged and accounted for in an MSA or a safety bridging
At the same time, advances in technology have also exposed agreement.
the energy industry to cyber risks that should be accounted for Understanding the MSA form and federal cyber security
in master service agreements (MSA), which dictate relationships directives applicable to offshore operations is necessary for
between service “contractors” and “companies.” companies and contractors in contracting for energy exploration
As technology has advanced, wells have been drilled deeper and production services on the OCS. A cyber breach could lead
and farther from shore. As technology has developed, the reli- to dire consequences, including injury to people, property and
ance upon automated systems has replaced manual labor. the environment. It should be considered as part of any HSE
Offshore energy service contractors support the exploration, program, and should be proactive in recognizing risks in offshore
production and transportation of natural resources in both operations where computers control and monitor the vessels,
state waters and on the federally controlled Outer Continental platforms and machinery.
Shelf (OCS). It takes a variety of specialty service contractors In 2018, offshore operations and communications are facil-
to drill a well on the OCS. The OCS includes the submerged itated by and dependent upon the use of technology. The ex-
lands, subsoil and seabed lying between the seaward extent of ploration for natural resources and its transportation via ships
a State’s jurisdiction, usually beyond 3 miles and extending 200 and pipelines are dependent upon computers, electronics and
miles. It is governed by federal regulatory schemes under the robotics systems. Vessels and platforms employed for offshore
Outer Continental Shelf Lands Act (OCSLA) enacted in 1953. drilling and production are subject to computer programs,
Work on the OCS involves vessels, aircraft and various types of smart phones, and satellites which are used to operate, com-
platforms used for drilling and production. municate, and position. Offshore service vessels are equipped
The predominant form used to employ service contractors with auto-pilots, rely upon electronic charts and, in some in-
for OCS exploration, production and transportation services is stances, dynamic positioning, to stay on location while drilling
an MSA which sets forth the general terms and conditions for or producing natural resources. A failure to secure these
between “companies” and “contractors.” Attachments to the systems from cyber threats could lead to catastrophic failures
general terms and conditions of an MSA address specific obli- and severe environmental impacts.
gations like drug policies, labor policies, Safety and Environ- The public safety and security of offshore operations are both
mental Management Systems (SEMS) and insurance. SEMS a private and public concern. Oversight is shared by various
were dictated by the Bureau of Safety and Environmental En- government agencies, primarily under the Department of the
forcement (BSEE) in response to the Macondo blowout. Other Interior and the Department of Transportation. Cyber risks and
governmental agencies and departments with regulatory in- breaches were recognized in the President’s Executive Order
terests include the Occupational Safety and Health Adminis- 13800. The Executive Order was issued on May 11, 2017, under
tration, the Department of Homeland Security and the United the title “Strengthening the Cyber Security of Federal Networks
States Coast Guard. and Critical Infrastructure.” In addition, the Department of
Today’s exploration for oil and gas is dependent on computers Energy has created an Office of Cyber Security.
running automated systems which are monitored by skilled Under current regulation 33 C.F.R. parts 105 and 106, facilities
workers and contractors providing drilling, production and on the OCS are required to identify and assess security threats
transportation services. Wells are drilled and minerals are and to develop a US Coast Guard-approved facility security
produced using a variety of structures, including platforms, plan. These directives, when codified and enacted, will create
drilling ships and a variety of mobile drilling units which are legal obligations that must be shared by offshore Companies
floated onto deepwater locations and held onto location by and Contractors. Cyber threats are real and affect the safety
advanced dynamic positioning systems. Offshore exploration and security of offshore operators. It should be accounted for
has entered the age of high risks and high rewards. between companies and contractors in any MSA. Recognition
Since many industries, including the oil patch, are dependent of the importance of cyber security should be part of the dis-
upon computers and autonomous systems to operate safely, cussion in drafting and negotiating an MSA. •

20 WWW.OFFSHORE-MAG.COM | OFFSHORE NOVEMBER 2018

1811OFF_20 20 11/5/18 10:15 AM

 European
Technology
Report

Photo by Espen Rønnevik/Woldcam, courtesy Equinor

1811OFF_21 21 11/5/18 10:18 AM

 • EUROPEAN TECHNOLOGY REPORT

Johan Castberg field schematic.

(Courtesy Equinor)

Johan Castberg project re-engineered

for harsh Barents Sea environment
Innovations in FPSO, subsea production system

JEREMY BECKMAN, EDITOR, EUROPE

LATE LAST YEAR, Equinor and its partners finally sanctioned stationed 240 km (149 mi) offshore Hammerfest. Sembcorp Marine
the Johan Castberg project in the Barents Sea after halving the in Singapore is building the hull and living quarters, while Kvaerner
costs of the development, compared with earlier proposals. Aker has overall responsibility for construction and installation of the
Solutions played a major role in this process, through its suggestions topsides.
and subsequent designs for the harsh-environment FPSO and the Aker Solutions is responsible for detailed design of the topsides
subsea production system, both of which will introduce novel and providing engineering, procurement, and management as-
technical concepts to the Norwegian continental shelf (NCS). sistance. It is also responsible for the design of the living quarters,
Johan Castberg comprises the Skrugard, Havis, and Drivis oil under a sub-contract from Sembcorp Marine, and for engineering
discoveries in 360-390 m (1,181-1,279 ft) water depth in license PL and supplying the entire subsea production system. This will
532, 100 km (62 mi) north of the Snøhvit field and 150 km (93 mi) comprise 30 wells with VXT vertical subsea trees – a new design
from the Goliat field FPSO. Equinor estimates recoverable resources developed in collaboration with Equinor – associated wellheads
in the range of 450-650 MMbbl. The 295-m (968-ft) long, 55-m and control systems, 10 templates and manifolds, two satellite
(180-ft) wide FPSO, which will be Norway’s largest to date, will be structures and associated tooling. In addition, two of the company’s

22 WWW.OFFSHORE-MAG.COM | OFFSHORE NOVEMBER 2018

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 • EUROPEAN TECHNOLOGY REPORT

yards in Norway are building the FPSO’s flare boom and the water to date and as with the Goliat FPSO, there will be a need for ex-
and chemical injection modules. tensive winterization measures to protect the crew and the topsides
equipment. Aker Solutions designed the FPSO SeaRose that op-
INVESTMENT DELAYS erates for Husky Energy on the White Rose field offshore New-
According to Aker Solutions’ Johan Castberg Project Director Nils foundland. “We have relatively good connections via people from
Olav Solheim, the company was first invited to tender for the that team,” Solheim said, “and have drawn to an extent on their
front-end engineering design (FEED) in early 2013 and won the experiences for Johan Castberg. However, the climate offshore
contract that summer. The initial studies were based on a semisub- eastern Canada is closer to the Norwegian Sea than the Barents
mersible platform exporting oil through a subsea pipeline to a Sea – besides that, they have icebergs to contend with.
new onshore terminal at Veidnes in northern Norway. In mid-2013, “The main difference in the Barents Sea is the prevalence of
however, the investment decision was delayed due to uncertainties polar lows, with a combination of snow, sea spray icing, sub-cooled
over the tax framework and the reserves range. Statoil, as Equinor rain, and fog. We have taken all these factors into account, with
was then known, decided to drill five wells on other prospects in an emphasis on heating where needed of exposed surfaces and
the area, in the hope of proving further reserves to strengthen the equipment with electrical cable heating, water heating for the
development’s business case – but results were largely helideck, and re-use of waste heat from the turbines.”
disappointing. The Johan Castberg FPSO will be the first offshore application
By that point, the company had extended Aker Solutions’ remit of Siemens’ SGT-750 gas turbine – a 41-MW version will drive a
to parallel studies of compress train that
a semisubmersible will re-inject the
and an FPSO offload- field’s gas to pressur-
ing to shuttle tankers. ize the oil reservoir.
However, in summer Siemens will also
2014, when the pro- provide a waste heat
gram had been run- recovery unit that
ning for around a will capture heat
year, the oil price from the gas turbine’s
started to slide and exhaust for distribu-
alarm bells began tion as heated liquid
ringing about the to prevent ice build-
projected costs of up on various parts
NOK100 billion ($12.2 of the superstructure,
billion), with a mini- or to heat the HVAC
mum breakeven of plant or incoming
more than $70/bbl. The Johan Castberg FPSO. (Courtesy Aker Solutions) crude from the wells.
In March the fol- Further waste heat
lowing year, the partners decided a further delay was called for on will be recycled from the GE power generator on the aft side of
selection of the concept until the second half of 2016, with a final the ship.
investment decision pushed back until late 2017. At that point, “We have also done studies on the impact of snow accumulation
the estimated cost of a newbuild platform was around $4 billion. based on wind simulations,” Solheim said. “If you do the construc-
“Equinor told us they would have to go for a cheaper alternative,” tion in a certain way, it can lead to large accumulations of snow,
Solheim said, “and requested a 15% cost saving on the 2014 figure. similar to alpine cottages in winter. We have performed simulations
We thought that would be possible, with Equinor’s help in ques- for the FPSO’s doors, walkways, lifeboats, and escape areas in order
tioning some of the functional requirements. to avoid this happening.”
“For the FPSO, Equinor had settled on an oil storage capacity SBM Offshore has designed the turret mooring system, under
of 1.3 MMbbl in the hull. We asked whether we could challenge construction at Drydocks World in Dubai, which will accommodate
this – was such a volume really needed, or could we go down? So, 10 risers with a total capacity for 21 risers. Aker Solutions has had
we reduced the capacity to 1 MMbbl, also questioning the scale partial involvement in the mooring system FEED studies, making
of the logistics and the shuttle tanker arrangements. But the recommendations concerning the impact of snow and cold tem-
partners decided they still wanted slightly more storage, so we peratures, and the company retains overall responsibility for the
compromised by recommending a switch to more space-efficient safe interface of the completed turret with the hull and the various
electrical/hydraulic pumps in order to increase the oil storage connection points. The hull, under construction in Singapore, will
capacity in the hull. That was one of various ideas we came up have structural reinforcements for possible sea ice, “although we
with for reducing the overall cost.” have tried to slim these down as much as possible based on avail-
This will be Norway’s most northerly Arctic development project able environmental design data during the FEED,” Solheim said.

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 EUROPEAN TECHNOLOGY REPORT •

WINTER HAZARDS always downwind, which means accumulated ice will mostly fall
Aker Solutions has seconded staff to Singapore to ensure the into the sea. But there could be more of an issue with ice falling
various interfaces are following recommendations from the FEED off the other high structures such as exhaust stacks – if that
in the detailed design, and Equinor has hired some of the com- becomes an issue, we could put up safety nets, similar to the
pany’s individuals to undertake follow-up measures, such as principle applied in mountain areas to protect against falling
maintaining stability calculations. rocks.”
The topsides modules, which are under construction at yards Although the FPSO has been downsized where possible to
in Egersund, Sandnessjoen, Stord and Verdal, are in general rel- minimize the cost, space has been made available on the deck
atively small compared to fixed platform topsides, Solheim added, to accommodate future tiebacks in the event of further discoveries
with a typical weight range of 2-3,000 metric tons (2,204-3,307 in the area. “And there is even the possibility to electrify the FPSO
tons), and therefore well within the range of mainstream heavy- in the future should associated infrastructure be developed,”
lift vessels. Kvaerner is building a new deepwater quay in western Solheim added.
Norway that will accommodate the Johan Castberg hull for the Gas will be injected from the start of production in late 2022,
topsides installation/integration campaign. with flaring not allowed. One of the first development wells to
“The design of the modules is not very different from those be drilled will be a gas injector, Solheim added: the initial design
on a normal harsh-environment FPSO,” Solheim said. “What we rate will be around 8 MMcm/d, building slowly from day one,
have had to do is to perform verifications to ensure the winteri- with the speed of the increase dependent on the output of the
zation measures protect the working area on the deck for main- production wells.
tenance-intensive activities. This could mean removing snow Aker Solutions’ detailed design responsibilities, managed from
that might accumulate in certain areas, and taking precautions its offices in Norway and India, last technically until tow-out of
against falling ice. Flare stacks in particular are prone to falling the FPSO to the field in 2022. But the company expects to com-
ice as elevated structures following changes in temperature: in plete the detailed design for the drawings for the various yards
this case, the flare is on the back of the weathervaning ship, i.e. in the fall of 2019, followed by a long tail-end period of answering

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 • EUROPEAN TECHNOLOGY REPORT

any construction queries the yards might have. “We will support tree with a low installation size and weight (the same applies to
these, but at a much lower manpower level,” Solheim said. “We the larger 7x7 version), installable by light vessels. This also drives
also have an overall responsibility to ensure that the entire pro- down the size of the rest of the SPS. As such, it has been not only
duction system will work, from wellheads to the offloading a subsea trees exercise, but a journey where all related areas of
system. the SPS have been optimized to ensure that the total cost of
“This will be a standard offloading arrangement for an FPSO ownership goes down. In this case, we are talking about cost for
in northern Europe. However, there have been some discussions operators during the field’s full lifetime, not solely the initial in-
concerning instances of shuttle tankers being too close to the vestment cost.
FPSO during offload operations, so we have investigated the “The main manufacturing of the various constituent parts is
possibility of longer hoses for Johan Castberg, with the vessels very similar to how we have produced our previous systems.
not in the conventional tandem configuration, but in a safer ‘off Manufacturing and testing can be performed at all the company’s
track’ position in case the shuttle tanker loses power.” relevant sites. A significant part of the development of the com-
ponents that make up the new tree systems has been to simplify
VXT BENEFITS and ensure optimized manufacture and test processes.”
Manufacturing of the various components for the subsea pro- Conceptual studies for the new VXT system were under way
duction system (SPS) is being spread among Aker Solutions’ before Johan Castberg was even on the drawing board. However,
plants in Norway, the this project was the
UK, Brazil, and Ma- Subsea vertical tree. major catalyst for the
(Courtesy Aker Solutions)
laysia, supported by development, the
suppliers in China, first milestone being
across Europe and a full-scale qualifica-
along much of the tion of the 7-in. verti-
Norwegian coastline cal subsea tree which
up to Hammerfest. started in 2013. “This
First shipments are involved a combina-
due out next spring, tion of qualifying the
with the final deliv- underlying technolo-
ery set to be com- gies needed for the
pleted in the first half tree,” Lundheim said,
of 2023, a few months “and a continuous
after first oil from development of the
Johan Castberg. surrounding technol-
In the company’s ogies, fabrication
view, vertical subsea methods, installation
trees are rapidly be- methods, and seek-
coming a standard option for projects on the NCS as operators ing ways of reducing the maintenance cost.”
in the region pursue further cuts in field development costs and Sigurd Loftheim Dale, Specialist System Engineer at Aker
rig time. Equinor collaborated with Aker Solutions on the design Solutions, added: “The success of the qualification can largely be
of the new VXT systems for this project and has committed to attributed to great collaboration between Aker Solutions and
further consignments for Phase III of the Troll field development Equinor on many levels, which included detailed feedback on
in the North Sea and the Askeladd subsea tieback in the Barents technology proposals, installation and maintenance concepts.
Sea. More VXTs are on order for Aker BP’s AErfugl tieback to the Equinor set targets for the cost of the equipment, installation
Skarv FPSO in the Norwegian Sea. ‘friendliness,’ and the level of maintenance. And these targets
At present there are two versions: were set not only with Johan Castberg in mind, but as an enabler
• 7x5 VXT on WH – 7-in. vertical bore with 5-in. outlet for a range of future field developments.”
• 7x7 VXT on WH – 7-in. vertical bore with 7-in. outlet To comply with the various requests, Aker Solutions employed
According to Aker Solutions Senior Product Specialist Lars a series of approaches, he continued, “many of which were based
Lundheim, both are equipped with flow modules that define the on value engineering and lean principles. One of the most powerful
duty of the tree (i.e. producer, gas injector, water injector). “This tools was that we adopted a business case approach to challenge
also means that there is one common tree for all duties,” he ex- requirements where we saw these as a block to good system
plained, “whereas the flow module is the configurable unit. solutions. But this was always done with the highest quality, safety
“There are many advantages with the 7-in. VXT. It comprises and reliability in mind as compromises on these areas would
our latest and most reliable tree technology. It has been developed never be cost-efficient. As a result, there has also been develop-
from a minimum cost of ownership point of view as a standard ment of templates, manifolds and connections systems and Aker

26 WWW.OFFSHORE-MAG.COM | OFFSHORE NOVEMBER 2018

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 EUROPEAN TECHNOLOGY REPORT •

Solutions’ new Vectus control system.” terms of the local environment and its possible impact on the
According to Lundheim, “the 7x5 vertical subsea tree is the drilling campaign, the main issues are short weather windows
company’s lightest and best standardized multi-application tree, and challenging logistics. We are responding by doing more work
with a dry weight of less than 35 metric tons [38.5 tons]. The 7x7 and preparing more equipment locally in northern Norway.
version is small both in size and weight, considering that it con- “As for the various connections between the SPS and the FPSO,
tains a full 7-in. through bore outlet with 7-in. metering equipment there are numerous technological innovations. Highlights include
and choke options with flow coefficients of up to 1,200. These our Subsea Communication Gateway with standardized interface
results were achieved through a series of improvements to pack- to the FPSO control system (MDIS) and the power and commu-
aging and other measures, continuously optimizing the design nication solution (DC/FO). This is also the first time we are
towards the targeted cost, weight, and size. demonstrating an integrated delivery model with our own FPSO
“Aker Solutions undertook the main development work inter- contract, as well as drawing on our subsea alliance with ABB.”
nally, but with regular design reviews, failure mode analysis and Another key feature of the VXT development has been chal-
so on with members of Equinor’s subsea team. And when we lenging standard maintenance concepts for subsea trees to help
challenged certain requirements, this too was handled directly meet cost-saving targets, Lundheim said. “The results in this area
with Equinor’s specialists in order to avoid time-consuming and are as impressive as what we have achieved on the tree and system
bureaucratic processes. All the components had to be qualified side. Some of the innovations that have enabled these results
to Technology Readiness Level 4 (TRL4) or TRL5, depending on include condition-based maintenance, re-use and standardization
functionality.” of tools; optimization of operations; and condition monitoring.”
The 30 wells scheduled for Johan Castberg are slightly lower Lundheim added that Johan Castberg and AErfugl will employ
than the total envisaged in the original plans in 2013, Loftheim the same design of 7x5 VXTs, while Askeladd and Troll Phase III
Dale said. “Drilling will now be performed using one rig instead will feature the same 7x7 versions. There will, however, be
of several, which was the first idea. This has been enabled in part field-specific differences in terms of the flow modules and con-
by reducing the time spent on each well by the drilling rig. In necting equipment. •

We make
Vallourec – Société Anonyme à Directoire et Conseil de Surveillance au capital de 902 476 010 € – 27, avenue du Général Leclerc 92100 Boulogne-Billancourt (France) –

the impossible
possible
RCS Nanterre 552 142 200. © Michael Saint Maur Sheil GETTY IMAGES.

Over 130 years ago, the Group’s founders were already pioneering innovative
technologies that would revolutionize the tube industry. Since then, Vallourec
continues to open new technological and geographical frontiers. Driven by passion
and commitment, more than 19,000 employees offer more than tubes: they provide
cutting-edge products and tailored solutions. Always more reliable, always more
competitive, Vallourec contributes to making all your projects possible, wherever
you need us, whenever you need smart tubular solutions. vallourec.com
NOVEMBER 2018 OFFSHORE | WWW.OFFSHORE-MAG.COM 27

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 • EUROPEAN TECHNOLOGY REPORT

All-polymer connector improves

pipeline corrosion mitigation
Equinor qualifies technology for water injection applications

ALLAN FEENEY AND CHRIS WOODS, SWAGELINING

RESEARCH SUGGESTS that more than

half (51%) of all failures in traditional oil
and gas pipelines are due to internal cor-
rosion.1 The failure of any pipeline presents
business risk, from loss of production to
cost of correction. Deeper water projects
and more aggressive fluids have tradition-
ally led to increased pipeline and riser wall
thickness. However, alternative mitigation
options are evolving at pace to remove the LinerBridge, when used as part of an integrated polymer lining system, improves the
risk and lower the cost of pipeline owner- sustainability of fluid transport systems. (All images courtesy Swagelining)
ship. The past decade has seen a rapid
advance in the development and qualifi- costs, weight, installation costs, and scheduling. This is unlike polymer-lined pipelines
cation of polymer materials as an internal using CRA connectors that have exposed CRA transitions and require complex CRA
lining for carbon steel pipelines. welding processes.
Acting as a barrier between transported As an all-polymer connector system, the technology is also well suited to high fatigue
fluids within a host pipe, polymer liners environments, enabling its use in deepwater steel catenary riser (SCR) systems which has
have evolved from widespread use within previously not been possible. With field developments taking place in increasingly deeper
onshore utility pipeline systems, to become waters and development of high-pressure/high-temperature (HP/HT) fields driving in-
a more practical and economical solution creased water injection pressures, flexible risers are challenged in terms of fatigue due to
for offshore pipelines. However, their uptake their construction without becoming prohibitively heavy. A polymer-lined SCR can offer
to date has been restricted due to the need clients’ substantial benefits in terms of riser cost, integrity, and floating production unit
for costly corrosion resistant alloy (CRA) hang-off tension.
connectors and complex CRA welding In line with DNV-RP-A203,
processes. the recommended practice for
qualification of new technol-
WORLD’S FIRST ALL-POLYMER ogy, the connector is qualified
CONNECTOR for onshore and offshore ap-
Developed by Swagelining (a Subsea 7 com- plications. It is suitable for
pany), LinerBridge is the world’s first subsea installation methods
all-polymer connector qualified by DNV such as reel-lay and towed
GL to technology readiness level five (TRL pipeline bundles. When used
5). The connector, which is made from the in reel-lay, the connector en-
same material as that of the polymer liner, ables engineering, procure-
is an integral component of the company’s ment, construction, and in-
integrated polymer-lining system. stallation (EPCI) cost
By preventing the transported medium reductions of more than one- The technology is the world’s first all-polymer connector
from coming into contact with the carbon third when compared with qualified by DNV GL.
steel pipe, it not only provides a continuous alternative CRA lined pipe.
end-to-end polymer corrosion barrier, but The qualification assures that the all-polymer connector is qualified for pressures up
also it facilitates the use of a carbon steel to 380 bar (5,511 psi) across 8-in. to 16-in. diameter water injection pipelines, with tem-
welding process in joining lengths of host peratures ranging from 0°C to 60°C (32°F to 140°F). An engineering assessment for periodic
pipeline. Thereby, reducing fabrication fluctuations above 60 degrees can be made with a maximum of 80°C (176°F) for PE100

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 EUROPEAN TECHNOLOGY REPORT •

material and to 95°C (203°F) for PE-RT material. As non-destructive testing to verify the weld quality and agreed
Further hydrostatic testing is ongoing within the company to acceptance criteria is not viable or mature for polymer materials,
raise the qualified pressure above the current 380 bar to address the company performs pre-qualification testing to ensure the
the growing demand for extreme high-pressure water injection connector is suitable for the pipeline environment before fabrica-
systems which are now requiring up to 900 bar (13,053 psi). tion. By welding the connector system within a process envelope,
it takes into consideration the environmental temperature, elec-
INDUSTRY ENDORSEMENT trofusion welding time, and the internal diameter of the machined
Following success in a recent qualification plan, Equinor has also seat. Therefore, when on onsite, this ensures the connector is in-
qualified the all-polymer connector for use in its water injection stalled within that process window, as well adhering to strict in-
applications. After undergoing simulated reeling, hydrostatic testing, stallation procedures, which are designed to control variables like
and accelerated age testing, Swagelining’s integrated liner system, contamination.
incorporating the LinerBridge connector – maintained its integrity
and corrosion barrier. A SUSTAINABLE SOLUTION
During the testing and qualification phase with both DNV GL While seven years is the typical life expectancy of an unlined carbon
and Equinor, the company demonstrated that the connector is a steel water injection pipeline2, the connector and integrated lining
viable alternative to conventional CRA methods and provides a system have a qualified design life of 50 years. This is based on
tough, reliable, and fully integrated polymer barrier within the project-specific test conditions without any detrimental impact
pipeline at reduced installation costs and with less ongoing main- on the polymer liner. The ability to extend the lifetime of the pipeline
tenance requirements. was proven following accelerated age testing with the Norwegian
As well as showing its cost reduction potential and long-term operator, and subsequently reviewed by DNV GL, as part of the
durability as a barrier, the connector offers improved flow assurance independent verification process.
and pigability through near continuous bore diameter with a Integrated polymer systems can significantly lower the cost of
smooth transition across the connector. It also facilitates improved full life-cycle pipeline ownership, while preserving system integrity.
flexibility in pipeline construction as it can be installed at any point
in a length of polymer-lined pipeline facilitating cut-to-length
operations and repairs.

PROVEN PERFORMANCE UNDER PRESSURE

Finite element analysis modeling was used to demonstrate how
the polymer connector behaves when subject to varying degrees
of internal pressure. The connector is engineered to be fully sup-
ported by the steel host pipe following initial internal pressurization.
Full deflection of the connector body is complete after the internal
pressure reaches around 70 bar (1,015 psi).
Up to this full deflection pressure, the tensile and shear stresses
on the electrofusion joint are demonstrated well within material The connector forms part of an integrated polymer barrier,
preventing the transported medium from coming into contact with
limits. Beyond this full deflection pressure, they remain constant, the carbon steel pipe.
with the predominant stresses on the connector becoming com-
pressive due to the fact that the polymer is being compressed into Lower installation costs combined with less long-term maintenance
the steel pipe surface. Essentially, it is the steel pipe which takes are seeing greater uptake of this new material.
the actual pressure containment and the liner simply compresses This technology therefore increases the cost-effectiveness of
within the steel pipe. polymer lining systems, enabling a step-change in the mitigation
of internal corrosion for pipelines and risers.
WELD INTEGRITY VERIFICATION LinerBridge will be installed as part of an integrated polymer
LinerBridge uses proven electrofusion welding technology adapted lining system in a pipeline bundle in 2018 and as part of two reel-lay
from the onshore gas utilities industry. Due to the extreme subsea projects in 2019. •
environment, the quality of the polymer weld was rigorously tested
to ensure it conformed to and exceeded the acceptance criteria in REFERENCES
ISO 13954, for electrofusion assemblies of nominal outside diameter 1. https://www.ogj.com/articles/print/volume-88/issue-44/in-
greater than or equal to 90 mm (3.5 in.). this-issue/pipeline/corrosion-causes-most-pipeline-failures-in-
This standard calls for the testing of four samples as a minimum. gulf-of-mexico.html
Dependent on the connector size, the company internally test a 2. Failure of Water Injection Lines JIP, by AEA Technology, July
minimum of 12 samples per side to demonstrate the required joint 1997.
quality is throughout the 360 degrees of the electrofusion joint.

NOVEMBER 2018 OFFSHORE | WWW.OFFSHORE-MAG.COM 29

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 • EUROPEAN TECHNOLOGY REPORT

Smart standardization for subsea hardware

LLOG deploys technologies in the Gulf of Mexico

TOM BRYCE, ENPRO SUBSEA

SUBSEA OIL AND GAS infrastructure

has developed significantly over the last
25 years, yet hydrocarbon recovery from
subsea wells is still typically 20% less
than topsides alternatives. It is an im-
proving picture, with less complicated
and more cost-effective solutions now
increasing ultimate recovery and deliv-
ering first oil earlier. Many of these inno-
vations are coming from specialist subsea
organizations founded in Europe.
Standardization has become a com-
mon theme as the industry adjusts to a
lower oil price. Operators have demand-
ed low cost ‘standard hardware’ with
shorter lead in times, which has long
been a holy grail for the subsea industry.
At best, this drive toward standardization
often comes with a penalty of inflexibility
and lack of strategic field development
options.
Alternatively, specifications which
begin as low cost and simple, often in-
crease in complexity and cost as they
move through the project and many of
the initial advantages are lost. These
specification changes are often deter-
mined with limited field development or
reservoir information. As a result, low Flow access modules ready for deployment. (All images courtesy Enpro Subsea)
cost basic ‘standard’ specifications typ-
ically evolve into higher cost multi-well wells by enabling production enhancing technologies to be fitted to standard OEM
specifications which attempt to address fasttracked hardware.
various potential field development
needs in a single repeatable design. DELIVERING ENHANCED PRODUCTION
This leaves operators with a choice of Technologies developed by Enpro Subsea, including Flow Access Modules (FAM) and
either adopting low-cost, fasttrack stan- Flow Intervention Services (FIS), have repeatedly delivered increased recovery, reduced
dard hardware with limited strategic costs, and earlier first oil in the UK, Gulf of Mexico, and West Africa.
options or project-specific hardware with The patented FAM technology is an enhanced subsea architecture which enables
corresponding price and delivery capital efficient flexible field development. It allows operators to place project-specific
impacts. production technologies onto standard stock subsea hardware. It consists of a FAM
Enpro Subsea has been working with ‘hub’ which is typically located within the jumper envelope and a FAM processing
operators globally to develop an alterna- module which houses the production technology hardware, including meters, valves,
tive subsea hardware strategy, which it pumps, and instrumentation.
calls ‘smart standardization.’ This allows The first FAM opportunity addressed a challenge facing an operator in the Gulf of
operators to ‘have their cake and eat it’, Mexico in 2016. The operator wanted to connect a new subsea well into an existing
i.e. to maximize recovery from subsea subsea manifold and flow loop, via a single spur flowline 3.2-km (2-mi) tieback, in

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 EUROPEAN TECHNOLOGY REPORT •

the Mississippi Canyon. The company

was asked to propose a design for a fast-
track solution using the operator’s exist-
ing deepwater infrastructure and a sur-
plus inventory of multi-vendor subsea
hardware, in only a 12-month project
deadline.
The well spud location, existing infra-
structure, and established operating
procedures in place created various po-
tential ‘life of field’ issues for the compa- Dual FAM on either end of a 3.2-km single spur flowline tieback.
ny to consider in its design. This included
a flow assurance strategy devised to end of 2018. FAM is initially Metering FAM
on a manifold.
overcome production chemistry issues being used to enable retriev-
and uneven seabed topography, and suc- able multi-phase metering
cessfully manage and mitigate the po- located within the jumper
tential for hydrate formation within the envelope between the tree and
single spur flowline. the pipeline end manifold or
The operator also required multi- pipeline end termination. The
phase flow metering (MPFM) and wa- same FAM can be used for
ter-cut metering (WCM) on the project other enhanced production
to detect water breakthrough, which solutions in the future, includ-
would influence the flow assurance strat- ing water cut metering, flow
egy. The MPFM would also enable the assurance, hydraulic interven-
production engineers to use the instan- tion and fluid sampling, pro-
taneous flow rates to optimize and max- viding the operator the chance
imize production out of the individual to defer capex and address
well. specific reservoir needs in the
Fluid intervention capability was also future.
requested by the operator, to allow hy- To date, 42 FAMs have been adopted globally in 11 fields and three deepwater
draulic intervention and well stimulation regions.
operations into either the pipeline or the
reservoir in later field life to enable max- MAKING FUTURE DECISIONS
imized recovery from the asset. De-coupling the procurement of the main subsea hardware means that all ‘life of
The solution delivered by Enpro used field’ engineering can be completed concurrently and therefore not negatively impact
the patented FAM hub at either end of the robust fasttrack schedules of the standard equipment. The FAM hub within the
the flowline providing chemical injection jumper envelope essentially becomes a subsea ‘USB’ port, through which multiple
opportunities at both ends to a manage enhanced production technologies can be deployed. The individual modules can be
hydrate issues as required, eliminating used (and reused) independently, in series or in combination to support various
the need for an additional ‘loop’ or return production optimization strategies. Some FAMs are deployed with just a ‘flow thru’
line. The operator additionally installed module, where the operator does not yet fully understand what strategies may be
a semi-permanent FAM metering mod- needed in the future but still wants a low cost ‘USB port’ in the infrastructure to fa-
ule at the tree end of the flowline and a cilitate future solutions, as a contingency.
FAM hydraulic intervention was available In addition to FAM technology being used in multiple greenfield opportunities in
to be deployed in the future. the GoM, it has also been used in brownfield applications in West Africa and the
North Sea, where FAM was retrofitted into existing subsea infrastructure.
NOTABLE MILESTONES Enpro’s focus on the future is to further reduce the cost of the FAM module to
In 2017, LLOG selected the FAM tech- enable its universal adoption on all subsea architecture. Additionally, the company
nology as it fully aligned with its strategic is extending the range of processing solutions which can be enabled by the FAM
approach to fasttrack, capital efficient technology, specifically in pre-commissioning, single well multi-phase pumping, and
subsea tiebacks. The company adopted HIPPS.
FAM on multiple fields including Crown The company hopes to repeat the success of FAM in the Gulf of Mexico in other
& Anchor, Red Zinger, and Stonefly, and parts of the world and is seeing significant interest from Brazil, following recent
they will be deployed on 12 wells by the promotion at Rio Oil & Gas. •

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 • EUROPEAN TECHNOLOGY REPORT

A scene from the OMC 2017

exhibition. (Courtesy OMC)

Strong attendance forecast

for OMC 2019
THE NEXT OFFSHORE Mediterranean Conference & Ex- The major theme will be “Expanding the Mediterranean
hibition, OMC 2019, will take place March 27-29 in Ravenna, Energy Sector: Fuelling Regional Growth,” with a special
Italy. Since its launch in 1993, OMC has become the largest focus throughout the event on research and innovation, the
exhibition and conference dedicated to the offshore and ‘digital revolution,’ and the rapid implementation of ener-
onshore oil and gas industry and all associated sectors and gy-efficient technologies.
activities in the Mediterranean and North Africa regions. “We have consolidated relationships with the countries
OMC 2017 attracted 20,603 participants and 634 exhibiting across the Mediterranean,” said Innocenzo Titone, the event’s
companies representing 33 countries. chairman. “It is a natural hub, paving the way for gas flows
For OMC 2019, the line-up of speakers at the conference from African, Asian, and Mediterranean countries to Europe.
will include the Ministers of Petroleum and CEOs of various At the same time, the discovery of large hydrocarbon deposits,
European and African countries and oil companies, with as in the case of Egypt, will be able to satisfy that country’s
delegations from the Eastern Mediterranean. Participating internal energy needs and regional export demand. Countries
countries will include Croatia, France, Germany, Libya, Nor- in the Mediterranean area are rich in natural resources, and
way, Spain, Switzerland, the Netherlands, Turkey and the are working hard on the energy mix development and helping
USA, with representatives from the main oil companies and to achieve carbon neutrality.”
research institutes across the region. Over 20,000 participants
are expected to attend the event and its exhibition, which More information available at www.omc2019.it or exhibition@
will feature seven pavilions. omc.it or conference@omc.it

32 WWW.OFFSHORE-MAG.COM | OFFSHORE NOVEMBER 2018

1811OFF_32 32 11/5/18 10:18 AM

 #pnec19

SAVE THE DATE >>

www.pnecconferences.com
may 21-23, 2019 // houston, tx, usa
marriott houston westchase
Owned &
Produced by: Presented by: Supported by: Follow us on:

1811OFF_33 33 11/5/18 10:18 AM

 • EUROPEAN TECHNOLOGY REPORT

Glue-bonded process adapts

mechanically lined pipe for reel-lay
THOMAS SCHÜLLER, BUTTING

IN THE EARLY 1990s, Butting developed the mechanically bon-manganese steel and the corrosion-resistant liner. But se-
lined Butting-Bimetal-pipe (BuBi pipe), a longitudinally welded lecting the optimum adhesive proved to be a major challenge.
pipe made from stainless steel or a nickel-based alloy which is There are a number of variants available for the GluBi pipe
telescopically aligned inside a carbon-manganese steel pipe and – both for the carbon-manganese steel and for the corrosion-re-
mechanically connected by means of a hydro-forming process. sistant liner – and for possible combinations. The production
This product combines the strength and toughness properties process, which entails very tight tolerances, corresponds to 90%
of carbon-manganese steels with the high corrosion resistance of the method applied for production of BuBi pipe. The main
of stainless steels or nickel-based alloys. difference is that with the GluBi pipe the outside surface of the
BuBi pipes have since been used widely for demanding appli- liner is connected to the inner surface of the carbon-manganese
cations in oil and gas produc- pipe by an adhesive, and the
tion, mainly offshore pipe- pipe ends are specially pre-
lines, risers, and steel pared for weld overlay weld-
catenary risers. They can be ing. The pipe ends are clad-
installed via S-Lay, J-Lay or in ded using the gas metal arc
bundles, although the reel-lay welding (GMAW) process
method is, in general, the with two layers, with the
most cost-effective. Cost con- same welding procedure
siderations were also the specifications applied as for
basis for the company’s most BuBi pipes. As a result, the
recent innovation, the GluBi ends of the GluBi pipes cor-
pipe: this is a glue-bonded, respond to the ends of the
mechanically lined product BuBi pipes, and the behavior
that can be installed by the of the GluBi pipe ends during
reel-lay process without us- circumferential welding is
ing inner pressure or increas- also identical to the behavior
ing the wall thickness of the of the BuBi pipe ends.
corrosion-resistant alloy BuBi pipes in Knesebeck. (Images courtesy BUTTING Group GMBH & Co) In 2010, Butting developed
(CRA) liner. a test rig to simulate the reel-
The installation process is playing an increasingly major role ing process which it installed at its main production complex in
in the selection of clad pipes. While reeling remains the most Knesebeck, Germany. The test rig enables simulation of many
cost-effective technique for pipelines and risers, bending of different applications and uses of the pipes. Over the past few
mechanically lined pipes is restricted when reeling. Depending years the company has conducted various repeat tests with GluBi
on a variety of factors such as wall thickness, outside diameter pipes.
and bending radius, wrinkles may be formed in the liner of a The first two stages of the qualification process of the GluBi
traditional mechanically lined BuBi pipe - hence the new devel- pipe in accordance with DNV-RP-A203 (together with DNV GL)
opment, which is designed to reduce the cost both of materials were completed in 2017, and the third stage of qualification will
and of pipelay while providing improved product conclude by the end of this year. Various tests remain to be
performance. performed including simulations using a finite element model
Although the idea for a glued pipe first arose in 2000, devel- provided by DNV GL to ascertain all factors that may have an
opment initially proved impractical as the pipe could not be impact on the pipe. At a later point, the finite element model
welded. However, work on the concept re-started in 2009, and will be used to determine critical factors of different dimensions
eight years later, Butting was able to present a glued pipe with and material grades, which will allow critical temperatures in
weldable pipe ends to oil companies and EPC pipelay contractors. service to be defined. Butting also plans to develop non-destruc-
The principle is innovative: the basis is a mechanically lined BuBi tive testing methods as part of its quality assurance procedure
pipe, with an additional special adhesive between the car- in order to be able to certify the existence of adhesive and its

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 EUROPEAN TECHNOLOGY REPORT •

performance. To date, companies in the oil and gas industry and

EPC contractors have reacted positively to the new product, and
some have asked for test pipes to conduct further
investigations.
To optimize manufacture of this product two new production
halls are under construction at the main plant in Knesebeck,
and all the machines and equipment will be installed during the A section of a
GluBi pipe.
current quarter. By the end of this year the continuous production
process for the GluBi pipes should be in place, providing sizes
in a range from 6-in. to 18-in.

NORTH SEA, BRAZIL APPLICATIONS 450 SFPDU / UNS 31603 mod. for Neptune Energy’s Fenja-Njord
Butting has responded to the recent upturn in field development, subsea tieback in the Norwegian Sea; and 9.5 km (5.9 mi) of
winning orders for a series of major offshore projects. One in- metallurgically clad pipes with an OD of 273.1 mm (10.75 in.) for
volved producing nearly 8,000 metric tons (8,818 tons) of BuBi BP’s Alligin project in the UK sector.
pipes in various dimensions for Equinor’s Snorre expansion The company has also been producing around 3,000 metric
project in the Norwegian North Sea. For the same client, the tons (3,307 tons) of metallurgically clad pipes and elbows in
company is producing more than 5,000 metric tons (5,511 tons) various sizes for the ramp-up to plateau phase of the deepwater
of BuBi pipes 10-in. and 12-in. versions in the material combi- Zohr project in the Egyptian sector of the Mediterranean Sea;
nation DNV SMLS 450 SP / UNS 31603 mod for the Peregrino and more than 1,600 metric tons (1,763 tons) of metallurgically
Phase 2 project in the Campos basin offshore Brazil. clad 12-in. and 16-in. pipes in the material combination X65
Other orders in the northern Europe area include 37 km (23 MOS / UNS N06625 for Saudi Aramco’s Hasbah and Arbi field
mi) of 12-in. BuBi pipes in the material combination DNV SMLS project offshore Saudi Arabia. •

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1811OFF_35 35 11/5/18 10:18 AM

 • EUROPEAN TECHNOLOGY REPORT

Bravenes broadens options for

pipeline, wind farm protection
BRAVENES, VAN OORD’s NEWEST
flexible fallpipe vessel, started its first off-
shore installation jobs shortly after under-
going a naming ceremony in Rotterdam.
This is the third vessel in the company’s
fleet of flexible fallpipe vessels after Nordnes
and Stornes, built in 2001 and 2011, and the
most versatile in terms of its subsea rock
installation (SRI) capabilities.
Van Oord committed to the investment
in 2014 based on growing demand time for
SRI works from both the offshore oil and
gas sector and the rapidly expanding re-
newable energy and subsea power market.
Even during the subsequent oil price col-
lapse, CEO Pieter van Oord reiterated the The Bravenes en route to an offshore project. (Courtesy Van Oord)
board’s confidence in the offshore sector’s
long-term future. Following delivery from two 2-MW retractable thrusters (total installed power 16.4 MW). It has ice class 1A notation
the Xiamen Shipbuilding Industry Com- from Bureau Veritas, which means it can sail the faster northern route to the Far East
pany in China, the vessel was christened during the summer months when icebreaker vessels ensure a clear passage across the
at Rotterdam’s Wilhelminakade pier in May Arctic Ocean. Its maximum speed while carrying its full 12,000-metric ton (13,228-ton)
of this year, departing shortly afterward for load is 13 knots, with onboard accommodation for 60 personnel, and 45 days
Norway to work on various North Sea proj- endurance.
ects before heading east in July to support Van Oord claims that Bravenes is the most advanced SRI vessel on the market, capable
the Nord Stream 2 pipeline construction of operating in three modes. One is through a moonpool, in water depths of up to 1,500
in the Baltic Sea. m (4,921 ft); another is with the entire flexible fallpipe tower skidded over the vessel’s side,
All three of the company’s flexible fall- allowing it to work close to offshore constructions such as oil and gas platforms or wind
pipe vessels have different features. Nordnes, turbines; and third, through a 1.5-m (4.9-ft) tall tremie pipe, again over the side, mainly for
which was upgraded in 2005, is a DP-2 shallower water operations or close to structures such as monopole wind towers, in this
vessel with tunnel thrusters at the bow and case placing rock to protect the foundations. In addition, the vessel is designed to install
stern and two retractable thrusters, gener- a wide range of rock sizes: the largest, up to 500 kg, is typically for offshore wind farms or
ating a total of 17.6 MW of power. It is de- subsea cables in shallower water to provide better protection and stabilization in waves
signed to place rock for pipeline stabiliza- and currents.
tion or seabed stabilization in water depths According to Koos van Oord, general manager of Van Oord Offshore, the launching
of up to 1,200 m (3,937 ft), with a dumping and recovery system of the vessel’s fallpipe, designed entirely in-house, is an innovation
capacity of up to 2,000 metric tons/hr (2,205 that no other SRI vessel can provide. “The way we store, launch, and maintain the fallpipe
tons/hr). Stornes, 175 m (574 ft) long with makes the operation more efficient and safer, due to the increased level of automation
a draught of 10.6 m (35 ft), has three bows (with reduced manual tasks). In addition, the conveyor belt is made of steel instead of
and two retractable thrusters (16.57 MW). rubber – following practice in the mining industry – to allow the vessel to handle the larger
Its flexible fallpipe operates through a sizes of rock.”
moonpool in water depths of up to 1,300 All three of the company’s fallpipe vessels are scheduled to work on a variety of projects
m (expandable to 1,800 m), at a dumping through the end of 2019, and despite the advanced capabilities of the Bravenes, there are
rate of up to 2,000 metric tons/hr. no plans to phase out either of the older ships. Earlier in 2018 Nordnes installed rock for
Bravenes, which is 154.4 m (506.5 ft) long, BP’s West Nile Delta development, 65-85 km (40-53 mi) offshore Alexandria in the Egyptian
28 m (92 ft) broad and 14,000 dwt, is a DP-3 sector of the Mediterranean Sea. This was over the deeper water pipeline sections, in
vessel equipped with two 1.3-MW azimuth depths of up to 650 m (2,132 ft). Nordnes and Stornes began working on the various phases
thrusters, two 1.5-MW tunnel thrusters and of the project, which is designed to tie in gas from five deepwater fields, in 2016. •

36 WWW.OFFSHORE-MAG.COM | OFFSHORE NOVEMBER 2018

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 • EUROPEAN TECHNOLOGY REPORT

Subsea technology thriving

in Oslo area
Cluster concept helping to foster innovation

JEREMY BECKMAN, EDITOR, EUROPE

SUBSEA VALLEY is a group of around Location of the

200 companies in the Oslo area represent- Subsea Valley cluster
ing all facets of the offshore oil and gas companies in eastern
E&P chain, with combined annual reve- Norway. (Courtesy
Subsea Valley)
nues of NOK70 billion ($8.45 billion). It has
come together under the Norwegian In-
novation Clusters (NIC) program, which
is in turn supported by Innovation Norway,
The Industrial Development Corporation Preben Strøm.
of Norway (SIVA), and the Research Coun- (Courtesy Subsea
Valley)
cil of Norway. Its members are among the
leaders in the areas of subsea, HP/HT, and offshore safety
systems technology. Offshore spoke to Managing Director Preben
Strøm about the association’s goals and how its members are
adapting to the changing global energy mix.

Offshore: When was Subsea Valley formed, and can you

explain its present relationship with other engineering
and R&D groups in Norway?

Strøm: The term “Engineering Valley” was first coined in the

1980s, referring to the comprehensive engineering competence
to be found in the greater Oslo area. As this competence started
to take the lead in the emerging global subsea revolution in the Strøm: Influence is primarily based on the level of engagement
mid-’90s, the designation “Subsea Valley” emerged. In 2010, it and the interest that various members, both at company and
was established as a formal network organization, and in No- individual level, take in the cluster and its activities. Having said
vember 2013, it was recognized as an early-stage cluster within that, Subsea Valley is in many ways a reflection of what is going
the Norwegian Innovation Clusters program. Last year, Subsea on in the energy industry in Norway and abroad, and the com-
Valley was appointed a “Norwegian Centre of Expertise” within panies within the cluster that set the tone on this stage will
the same program, reflecting the cluster’s enhanced maturity naturally also have an impact on Subsea Valley and its future
and established national role. direction.
Clusters are seen as a means of achieving the Norwegian
authorities’ objectives in the areas of innovation, technology Offshore: Much of the members’ business seems to come
development, and value creation. Innovation Norway, SIVA, from other sectors, so what percentage of the various
and the Research Council of Norway are the primary state programs and initiatives are offshore – or even subsea
agencies in this field and they also manage the Norwegian In- – related?
novation Clusters program. Therefore, Subsea Valley works
closely with these three state bodies, both through the overar- Strøm: Although we have a strong foundation in oil and gas
ching cluster program and on individual projects. (O&G), about 5% of our members’ revenues come from renewables
and 25% from other sectors. In terms of our concrete projects
Offshore: Are there certain individuals or companies in and initiatives, many are about facilitating co-operation and
particular that steer the direction of Subsea Valley’s var- innovation, which is not limited to O&G per se. The best way to
ious programs and projects? describe both our member mass and our project portfolio would

38 WWW.OFFSHORE-MAG.COM | OFFSHORE NOVEMBER 2018

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 EUROPEAN TECHNOLOGY REPORT •

be “energy technology with a foundation in world leading subsea Offshore: How does Subsea Valley work with counterpart
engineering and technology.” organizations in other countries, and what are the typical
end-products?
Offshore: In terms of the breadth and variety of offshore
expertise, how does the Oslo area compare with other R&D Strøm: Up until now, our international efforts have been focused
centers in Norway? on cluster to cluster co-operation, working with selected cluster
organizations abroad, for example, Offshoreenergy.dk in Denmark
Strøm: The regional Norwegian offshore-related industry is quite and Aerospace Valley in France. The co-operation involves col-
complementary. In Bergen you have a strong inspection and laboration on EU projects as well as joint initiatives for technology
maintenance sector. Stavanger is very advanced when it comes and competence transfer. However, we are now in the process of
to field operations and production, while key players in well and recruiting an EU advisor, and with this function in place,
drilling are located in Kristiansand. In the Oslo area we the organization will take on more of an international
are traditionally very strong on engineering, in par- facilitator role. Among other things, the EU
ticular in the area of subsea. However, as digi- advisor will facilitate both member compa-
talization and the push for energy transition nies’ and Subsea Valley’s participation in
bring more disciplines into the O&G and energy international collaboration projects and in
industries, the Oslo area is benefitting from its relevant European arenas.
overall high level of highly skilled professionals,
in particular in the area of software Offshore: Can you provide more details on
engineering. the SME Digital Transformation program
and the targets of the different companies
Offshore: Does a member company have to involved?
have a base within a certain radius of the
capital, or could it be situated elsewhere in Strøm: The overall goal of the SME Digital Trans-
Norway or another country? formation project is to promote structured col-
laboration in the development and use of digital
Strøm: The vast majority of our members have a platforms, so as to ensure optimal exploitation
presence in the greater Oslo region, but we also of the cost-saving and efficiency potential these
welcome members and partners outside of this platforms carry. More specifically, the program
area whose competencies and focus are in line aims to:
with those of Subsea Valley. For example, • Accelerate digital understanding in the
Oceaneering, whose Norway office is located in SME-segment and to identify new opportu-
Stavanger, is a member, and NTNU - the Nor- nities for communication between SMEs,
wegian University of Science and Technology in system integrators, and operators
Trondheim - has a seat on the Subsea Valley board. • Explore standards for sharing, exchange, and storage
of data and develop new solutions for direct shar-
Omnirise SP booster.
Offshore: Do all the top mid-size to large con- (Courtesy FSubsea) ing of data and documents.
tractors, oil companies, and research insti- The project is of a five-year duration and is
tutes in the area work with Subsea Valley? implemented in close co-operation with some of the largest
companies and most influential digital players in Subsea Valley,
Strøm: Yes, very much so, either as members of the organization such as DNV GL, Aker Solutions, Equinor, Cognite, Kongsberg
or as partners. In addition, we incorporate the majority of the Digital, and Sintef Digital, all of which are developing digital
relevant SMEs and start-up arenas in the region, as well as key platforms for new digital services.
finance institutions. Subsea Valley can only achieve its full po-
tential if we engage all the different kinds of players of relevance Offshore: What is the position regarding Subsea Valley and
to the energy industry. We arrange a variety of get-togethers and Techstars, the ‘accelerator’ program designed to support
meetings with different purposes, encompassing workshops for entrepreneurial companies commercialize their
collaborative projects, large networking gatherings, delegation technologies?
trips to key events such as OTC and ONS, and matchmaking
sessions between concrete players, to mention a few. However, Strøm: Techstars Energy, the first Techstars program within the
the overall objective of all these initiatives is to promote co-op- field of energy and in the Nordic countries, has been recently
eration and synergies, and thereby innovation, value creation, established at Fornebu in the Oslo region. The global tech accel-
and enhanced competitiveness. erator Techstars are extremely particular about the programs
they allow to become part of the Techstars network and where

NOVEMBER 2018 OFFSHORE | WWW.OFFSHORE-MAG.COM 39

1811OFF_39 39 11/5/18 10:19 AM

 • EUROPEAN TECHNOLOGY REPORT

these programs are to be located. Hence, getting Techstars to closely together on many of the same projects, big and small.
Norway was a long process. Subsea Valley has been supporting Moreover, some of our members, like Optime Subsea, strive to
this process actively and is very pleased that the Oslo area as an always use local and regional suppliers to the extent possible in
established subsea and energy hub proved to be one of the key their work. In terms of concrete examples, the joint industry
pull factors bringing Techstars to Norway. project (JIP) between FSubsea [ formerly Fuglesangs Subsea],
Lundin, Equinor, Aker BP, National Oilwell Varco, OMV (Norge),
Offshore: And what is Subsea Valley’s connection with the and ConocoPhillips to develop a new revolutionary subsea pump
NCE Energy Technology development project? system, “Omnirise,” is an excellent illustration. The system uses
magnetism rather than traditional shaft seals lubricated by hy-
Strøm: NCE Energy Technology, which stands for “Norwegian draulic fluids and replaces bulky and costly variable-speed drives
Centre of Expertise Energy Technology,” is the name of the project with a simple, non-contact hydrodynamic gear. This will lead to
based on which Subsea Valley received its National Centre of significant improvements in terms cost, weight, and reliability.
Expertise status. The project represents a shift from Subsea Valley Rystad Energy has estimated that Omnirise can provide savings
as a pure O&G/subsea focused organization to an organization of NOK150 million [$18.12 million] in capex alone on a single-well
concerned with energy technology more broadly, however still boosting installation, compared to conventional boosting systems.
with a very strong subsea component. In 2017, FSubsea won the Spotlight on New Technology Award
at the Offshore Technology Conference in Houston, and the
Offshore: Can you provide details of specific offshore/ system is expected to come on the market in 2019. The project
subsea technologies that have either been developed or had its origins in Subsea Valley, as it all started as an initiative
are emerging as a result of collaborations between your between FSubsea and Lundin. The way the consortium looks
member companies? today, four of the JIP companies, Equinor, FSubsea, Lundin, and
Aker BP are located in Subsea Valley, and the project is still man-
Strøm: In general, the companies in the cluster develop and work aged from FSubsea’s offices in Oslo. •

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 EUROPEAN TECHNOLOGY REPORT •

The Veristar AIM3D solution

supports operations at
numerous offshore shipyards.
(Courtesy Bureau Veritas)

Excelerate, MISC adopt Bureau

Veritas lifecycle support service
BUREAU VERITAS IS DEPLOYING its asset integrity man- in the cloud mode, without the need for IT integration, to
agement system, Veristar AIM3D, developed in partnership provide asset integrity services while the vessel is deployed
with Dassault Systèmes, to support a wide range of clients in on the Moheshkhali floating LNG import terminal just offshore
the offshore sector. Bangladesh, the first of its kind in the country. The floating
The company describes this as a full lifecycle solution that terminal became operational in August and allows Bangladesh
moves beyond software to examine full workflows. It then to import LNG for the first time as its domestic gas production
applies digital tools, including a combination of 3D digital decreases. It is also said to be the world’s first fully integrated
twin with smart data processing, through a collaborative turnkey FLNG terminal under which a sole provider, Excelerate
platform, to facilitate data collection, updates, visualization, Energy, provides all services under a single contract.
and data processing – with clear visibility through dashboards In Malaysia, MISC’s offshore integrity management teams
that are available on any device. will use Veristar AIM3D on three different facilities to plan
Veristar AIM3D is said to reduce the cost of operations by interventions, provide onboard contractors with detailed work
providing smart insights, and by helping offshore operators instructions, and continuously evaluate the assets’ condition.
to better understand their risks and opex exposure. They can MISC’s activities include owning and operating offshore float-
then take action to improve safety and the overall performance ing vessels, marine repair and conversion, engineering and
of their fleet (in the case of vessel owners or drilling contrac- construction, integrated marine services, port and terminal
tors) and drive down opex, with asset management dashboards services, and maritime education and training.
available for individual ships, rigs or facilities, or for entire Implementation of the Bureau Veritas system should lead
fleets. to improvements in terms of asset integrity management,
Companies that have contracted the system include Ex- through a new way of working in a collaborative environment
celerate Energy for the floating storage and regasification unit – goals being smarter decision making, improved performance,
(FSRU) Excellence. The system will be delivered to Excelerate cost optimization, and improved risk management. •

NOVEMBER 2018 OFFSHORE | WWW.OFFSHORE-MAG.COM 41

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 • EUROPEAN TECHNOLOGY REPORT

Vessel tracking system helps

safeguard offshore infrastructure
MILAN-BASED GENEGIS GI has de-
veloped a service that allows offshore
operators and contractors to monitor the
movements of vessels transiting sea areas
close to or over their infrastructure.
The Vessel Alert Monitoring Platform
(VAMP) provides regular updates
through combining the geographical
position of the offshore facility with ma-
rine traffic information. Users can track
approaching vessels in real time, receiv-
ing detailed reports informed by multiple
signal channels, including Inmarsat and
other satellite and terrestrial automatic
identification systems (AIS). In addition,
VAMP advises vessel crews of their prox-
imity to the client’s infrastructure. The VAMP system provides constant monitoring of vessels crossing or approaching offshore
GeneGIS GI ( formerly known as gas trunklines and cable systems. (Courtesy GeneGIS GI)
GESP) was established in 1977 as a small
consultancy specializing in environ- Today the organization employs around 80 technicians located in different sites
mental assessment and civil engineer- in Italy (aside from Milan, it has offices in Torino, Bologna, and close to Naples).
ing. From 1995 onwards, the company GeneGIS GI claims to have delivered high-profile geospatial projects in more than
began providing software solutions and 20 countries, and via a network of partnerships, has provided solutions in Russia,
IT services based on geographical data Sub-Saharan Africa, Europe, Latin America, China, the Caribbean, and the Middle
- i.e. the Geographic Information System East.
(GIS) - for different sectors including oil Depending on the client’s needs, the company can adapt its service to interface
and gas and logistics. with terrestrial AIS base stations along nearby coasts or via satellite. “The coverage
Last year, it decided to merge with provided by the satellite AIS technology offers the possibility to trace ships even
three other Italian service providers to in remote marine areas very far from the mainland,” Raso explained, “and this is a
form GeneGIS GI, the GI standing for great advantage for those who have to monitor infrastructures with large linear
Geographical Intelligence. The aim, ac- extension such as gas pipelines or cable systems. Terrestrial AIS antennas positioned
cording to Luca Raso (business devel- along the coasts provide less sea area coverage but ensure a much higher resolution
opment manager) was to enhance and and therefore more complete information. This is the right service for those who
expand its capabilities to supporting manage infrastructure close to the coastal strip.
the entire lifecycle of any IT project “Typically, the company is hired by international and financial institutions such
based on geographical data, from the as the World Bank, United Nations, the EU, or international agencies such as Frontex
acquisition of raw data, processing and and UNESCO. We adapt our easy-to-use solutions to assist the modernization
integration through the development process in developing countries or to support re-construction programs in countries
and maintenance of bespoke software affected by wars or natural disasters. Our track record offshore includes involvement
applications. All the companies that in the maintenance operations of long-distance trunkline systems such as Blue
formed GeneGIS GI and their various Stream in the Black Sea, the Green Stream pipeline between Libya and Italy, and
specialists have worked for many years the Trans Mediterranean Pipeline taking gas via Tunisia to Sicily and mainland
for the major international oil and gas Italy.
companies and contractors, Raso add- “In certain parts of these and other seas there is a greater density of infrastructure
ed, providing offshore and onshore and/or particularly heavy maritime traffic. In those areas, where there is a higher
software applications. potential for damage due to collision by impacts or inappropriate anchors, the

42 WWW.OFFSHORE-MAG.COM | OFFSHORE NOVEMBER 2018

1811OFF_42 42 11/5/18 10:19 AM

 benefits provided by the VAMP service
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“For each customer, during the VAMP
service activation phase, our team per-
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1811OFF_43 43 11/5/18 10:19 AM

 • EXECUTIVE INTERVIEW

New business models can help

advance E&P in the Gulf
GoM operators looking for value over volume

BRUCE BEAUBOUEF, MANAGING EDITOR

OPERATORS IN the Gulf of Mexico (GoM) have had success Offshore: We are beginning to see the oil and gas market
recently focusing on incremental subsea tiebacks and near-field emerge from the downturn that began in 2014. We’re
opportunities, and there remains uncaptured upside. However, seeing activity pick up in several regions, but it seems
successful exploration and development of complex reservoirs like the Gulf of Mexico is still lagging behind. How do you
continues to be a challenge for operators and puts into question view the GoM market today?
the scale of the GoM’s growth potential in the coming years.
New trends in technology, development, commercial models, Yanosek: Well, it depends on what you mean by “lagging be-
and financing—and industry players’ responses to these inno- hind.” When you think about the North America activity yes,
vations—will determine whether the GoM will return to its there is a lot more focus on onshore and particularly, in the
former role as a high-margin, cash-generation contributor for Permian basin, but that doesn’t translate into the Gulf of Mexico
the best operators. necessarily lagging behind. There has been quite a bit of activity
To get an in-depth analysis of these trends Offshore recently over the past 18 months with new discoveries announced and
spoke with Kassia Yanosek, Partner with McKinsey & Co. As a FIDs picking up, relative to the 2014-2016 time-frame.
leader of McKinsey’s strategy work within the Oil & Gas Practice Several large projects have been sanctioned recently, including
in the Americas, Yanosek advises international and national oil BP’s Mad Dog Phase 2 project and Shell’s Vito project. When I
companies, exploration and production independents, and look at the Gulf of Mexico, I see a region that is reshaping the
service providers on portfolio strategy, capital project delivery, future of deepwater E&P. Moreover, we have seen increased
organization, mergers and acquisitions, and technology activity from newer players who are exploring and developing
innovation. smaller fields in the Miocene formation-- a good example is
*** LLOG with 30 producing wells and three new subsea tiebacks

F1: BY 2035, UNDER OUR BASE CASE E&P COMPANIES NEED TO ADD 43MMB/D OF NEW CRUDE
PRODUCTION FROM UNSANCTIONED PROJECTS TO MEET DEMAND

110.3
+2.2 +8.4 +1.1 +4.6 –11.4
98.2
International shale (shale outside of
North America) makes up ~15% 6.6
(2 MMb/d) of global shale by 2035 19.8

13.0 8.0 43.2

MMb/d
3.0
Crude and 4.9 43.3 Yet-to-find fields 86.6
condensate represent ~25% of
= 81.6 43.2 pre-FID deepwater
production by 2035

2017 Decline Production 2030 OPEC Shale oil Oil sands Offshore Other3 Total
Production to 20301 from Starting Gulf2 2030 oil
sanctioned production production
projects Unsanctioned projects
NGL and other liquids OPEC Gulf Oil sands Shallow water
Other Shale oil Deepwater
1
The decline is net of in-fill drilling and other work done to fields that are not classified as major projects.
2
Does not include shallow water. OPEC = Organization of Petroleum Exporting Countries.
3
Other includes onshore conventional, heavy oil, unconventional gas, and excludes OPEC Gulf.

Source: Energy Insights by McKinsey

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 EXECUTIVE INTERVIEW •

this year. Another is Talos Energy, an F2: GLOBAL DEEPWATER SUPPLY GROWTH, 2017-30, MMbd
emerging private equity-backed player +1.5 12.7
who recently merged with Stone Energy
1.5 Yet-to-find
[to form Talos Energy, Inc.], and have an +8.1
ambition to grow their position in the Decline Yet-to-find
9.3 to 20301 reserves
Gulf of Mexico. Further, some of the ma- 4.1 Brazil
jors are announcing significant capital 2.4
commitments to the Gulf of Mexico.
However, I think there’s a question 1.9
1.6 US Gulf of Mexico
about how different operators think
0.3 Mexico Gulf of Mexico
about growth in their deepwater portfo- 2.2 1.7 Nigeria and Anola
lios beyond near-field exploration. There +1.5 3.2
seems to be growing appetite by majors Pre-financial 1.0 UK and Norway
1.4 investment
such as Shell and Total for pursuing big –7.6 Sanctioned
decision
2.2
1.7 (pre-FID) Other
finds in the Paleogene and in the Nor- projects discoveries
phlet, a Jurrasic play that has gotten a lot 2017 2030 Starting 2030 Total oil
Production production production
of attention lately. While the extent of
1
growth in the next phase of GoM devel- The decline is net of in-fill drilling and other work done to fields that are not classified as major projects.

opment is still an open question, I would Source: Energy Insights by McKinsey

say that we’re seeing a lot more optimism
about the future of the Gulf of Mexico.
Yanosek: Focusing on the actual number can create confusion, as every project is
Offshore: What have GoM operators different. But $90 to $100/bbl was a typical break-even in 2014. So yes, costs have
been doing to reduce their break- fallen by 60% or more. There are two factors contributing to the lower break-even
even cost, and where do you see costs. Number one is supply chain compression – supplier margins have fallen about
break-even cost today in the deep- 50% from 2014. Secondly, operators are now thinking differently about how to design
water and ultra-deepwater Gulf ? a hub to make it more fit-for-purpose, as opposed to a “Cadillac” design with all the
bells and whistles. They are also reducing unnecessary redundancies and adapting
Yanosek: Break-even costs for deepwater the size of their project teams to be more agile.
projects in the Gulf of Mexico have been Alongside this, the industry is undertaking efforts to re-think how to reduce waste
falling dramatically since 2014. McK- in the supply chain. Operators are now partnering with suppliers earlier in the design
insey’s deepwater cost model, that bench- cycle to jointly develop a cost-effective model for deepwater projects. Additionally,
marks breakeven costs for future projects, industry-wide collaboration efforts such as the JIP33 Capital Project Complexity
indicates that new project breakevens initiative, hosted by the International Association of Oil & Gas Producers, is creating
have fallen over 60% on average over the standard specifications for equipment and components. The subsea tree specification
past five years. Today, we see operators developed by this initiative is estimated to result in roughly 20 to 25% cost savings
publicly reporting forward-looking break- per tree, even with the same quality expectations.
even costs for new hubs in the $35/bbl
range, and sometimes less. Break-even Offshore: With the resurgence in oil prices over the past year, what oil price
costs are even lower for new subsea tie- do you think is required to keep the Gulf of Mexico viable as an oil-producing
back projects, which leverage the existing region over the long term?
infrastructure.
Yanosek: We have run the numbers with our deepwater cost curve model that we
Offshore: Do you factor a return in maintain. If you assume a $70/bbl long-term price, then by 2030, 90% of Gulf of Mexico
your break-even, and is it a full cycle projects will be economical. We see that between now and 2030, there will be a sig-
break-even? nificant supply gap that needs to be filled, and onshore production will not be sufficient
to make deepwater production irrelevant – especially now when we are seeing deep-
Yanosek: Yes, we factor in a 10% return water projects that are competitive with onshore projects.
on investment in full cycle break-even In our lower-case scenario where the oil price is $40/bbl over the long term, then
cost. about 45% to 50% of projects in the Gulf of Mexico are projected to be economical.
Important to note is that we do not build in any additional technological or produc-
Offshore: A 60% reduction in the tivity improvements into the economics beyond the current state. In view of all of
break-even cost since 2014 seems this, we believe that the Gulf of Mexico deepwater has a future in a range of oil price
pretty dramatic. Can you elaborate scenarios.
on this?

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 • EXECUTIVE INTERVIEW

F3: SUCCESS RATE DEEPWATER EXPLORATION WELLS1, % Offshore: Over the first half of this
year, rig counts have improved in
West Africa 70 101
the US Gulf, while not at 2014 levels;
Mexico GOM 66 44
we see that the industry has learned
Brazil 63 94
West Africa 62 219
to do more from a single rig. Do you
North Sea 59 155
think this is still a good metric to
Brazil 59 186 assess drilling activity in the
Australia 56 103 region?
Mexico GOM 56 45
Southeast Asia 52 196 Yanosek: It’s a difficult metric to assess
North Sea 51 469 these days, because there is a lot more
Australia 48 106 innovation happening on the rig. I do
US GOM Deep (Other)2 46 83 think there’s a bit of a change in ap-
US GOM Deep (Miocene) 41 123
proach as to how rigs are used, and how
US GOM Deep (Paleogene) 22 58
Shallow quickly people can get projects online.
1
2
Excludestight holes, for the period 2008-17. Deep As mentioned earlier, there are new
Data not available. Jurassic, of Quaternary.
players in the Gulf of Mexico. Those folks
Source: Woodmac UDT, McKinsey analysis are taking a very different approach – for
instance, they may only use one rig even
if they are drilling 30 wells. In that type
Offshore: Besides oil prices, what other challenges that are unique to the Gulf of scenario, it’s a bit hard to use the num-
could unlock E&P activity? ber of rigs active in the Gulf of Mexico
as a proxy for activity.
Yanosek: Technology is definitely one of them. Technology has been a big part of the
Gulf of Mexico’s deepwater story for two decades, when advances in seismic imaging Offshore: While the oil price outlook
enabled game-changing discoveries in deeper and more complex areas. Further is improving, Gulf operators still
technology development is required if we’re going to see significant growth in the face other challenges – i.e. regula-
exploration and development of plays such as the Paleogene. We’ve looked at the tory and fiscal and insurance costs
recent history of the Gulf of Mexico deepwater and the differences in exploration and remain high. With these higher
development success between the Miocene and the Paleogene. Exploration success costs, is it still feasible for the small-
rates for the Paleogene have been challenging. The industry has about a 20% success er companies to play a meaningful
rate on average in the Gulf of Mexico, which is two to three times worse relative to role in the Gulf, or are we getting to
other deepwater regions. a situation where really this is kind
And even when exploration efforts in the Paleogene are successful, most of these of a “big boys club” – the super ma-
finds have not been developed due to resource complexity and uncertain economics. jors, national oil companies and
Of the 5 billion barrels of oil equivalent of discovered reserves in the GoM that have such. What implications might that
been brought online since 2005, 70% of the volume has been in the Miocene play, with have for Gulf E&P going forward, if
only 5% coming from the Paleogene. As a result, operators have in recent years focused that’s an accurate assessment?
on developing “value over volume” because the Miocene plays are smaller find sizes
and are typically tying back to existing hubs. We haven’t “cracked the nut” on the Yanosek: That’s a key question: what
Paleogene. There is a lot more room for operators to develop and accelerate the will the industry structure of the Gulf of
technology that will be needed in this high-pressure, high-temperature Mexico look like, going forward? It’s not
environment. hard to imagine seeing a few majors
dominating the basin in the future, who
can make these long-term investments
and take on the deepwater risk profile.
That’s a key question: what will the industry Interestingly, while a number of large
structure of the Gulf of Mexico look like, going independents left the basin after the
forward? It’s not hard to imagine seeing a few 2014 oil price collapse (Noble Energy,
majors dominating the basin in the future, who ConocoPhillips, for example), we are
can make these long-term investments and take now seeing a rise in activity in the basin
on the deepwater risk profile. – Kassia Yanosek from small, private-equity backed com-
panies I referenced earlier, who focus
on near-field exploration and brownfield
developments. One could argue that the

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 EXECUTIVE INTERVIEW •

future Gulf of Mexico could eventually F4: DISCOVERY RESERVES IN DEEPWATER GULF OF MEXICO1
look more like the North Sea, where you WITH SPUD2 YEAR BETWEEN 2005-17, BBOE3
see a number of the incremental type Pre-financial investment Pre-financial investment
developments done by these players decision (pre-FID) decision (post-FID), %
who are more nimble and have better Paleogene Paleogene
operating efficiencies than some of the Miocene4 5
54 46 Other
majors. That said, there is no denying 34 22
5.4 10.0 4.6
that we will continue to see investment 58 73
BBOE BBOE BBOE
from the larger majors who are making 8
large capital commitments to the Gulf Other5
Miocene
of Mexico.
Pre-FID average discovery size, MBOE6 Post-FID average discovery size, MBOE
Offshore: Do you think we will see Paleogene 209 Paleogene 125
more of a brownfield/subsea tieback
Miocene 51 Miocene 60
approach in the Gulf, going
Other 45 Other 47
forward?
1Water depth of 1,000+ ft.
2Spudding is the process of beginning to drill an oil or gas well.
3Billions of barrels of oil equivalent.
Yanosek: Since subsea tiebacks leverage 4Miocene, Neogene, and Pliocene.
existing infrastructure, they are an eco- 5Data not available. Jurassic, and Quaternary.
6Millions of barrels of oil equivalent.
nomical field development option that
will continue to be favored in the Gulf Source: Woodmac UDT, McKinsey analysis

going forward. There is a question, how-

ever, for some of the independents who
focus on this strategy: How are they North Sea industry operates. Doing that in a way that coordinates the industry
going to continue to grow if subsea tie- could be an opportunity for value creation.
backs are their only strategy? If they’re We are also seeing an interest in new approaches to producer/ supplier relation-
a Gulf of Mexico player and their whole ships. For example, operator-supplier partnerships to standardize engineering
business model is based on subsea tie- designs and equipment – in early stages of project development – are being devel-
backs, you’re going to probably see them oped to speed cycle times. We are also seeing an emergence of new commercial
grow through acquisitions and partner- models between equipment providers and operators that were pioneered in the
ships so that they can access more fields aerospace sector, that align incentives across operators and equipment suppliers
and more capital. through risk-sharing and jointly sharing in the value of an end-to-end project. These
are models in which all participants can share in the upside of improved
Offshore: We’ve seen a lot of consol- utilization.
idation over the past two years, and
new partnerships are forming as Offshore: Let’s go back to the topic of deepwater break-even costs – does
well. What is your view of some of the industry need to bring the break-evens down even further to make
these business alliances? Do you deepwater increasingly competitive with onshore, to help get some more
think they can help the industry projects to FID? And if so, where can the industry find the savings?
move forward with new projects in
the Gulf ? Yanosek: If you look at the history of the deepwater Gulf of Mexico, back in the
early 2000s operators were sanctioning projects at $25/bbl. So, you might ask: “How
Yanosek: Operator partnerships and do we get back to those days?” Just a few years ago, it was hard to imagine ever
alliances have and will continue to be a repeating that. But I do think that there is opportunity to even further reduce costs
strategy for many companies, particu- and improve productivity, beyond what has been achieved in the last few years.
larly as companies look to share risk and There is also still quite a lot of waste in the system. We haven’t even maximized
capital commitments for emerging plays all of the potential cost and productivity savings from engineering improvements.
in the Paleogene. A new trend we are And digital technologies have the potential to further transform deepwater eco-
seeing is that majors are beginning to nomics. Exploration analytics, for example, are being used to identify new resources
partner with small independents on and have the potential to transform competitiveness in exploration. In the North
exploration. Sea, operators are using technology to increase recoveries. While still nascent, re-
Additionally, we see that the offshore mote operations enabled by technology and analytics will be part of the GoM’s
players in the Gulf of Mexico could de- future operating model across the lifecycle of a field.
rive great benefits by pooling equipment We’re at the early stages, but digital has the potential to be a significant game
and resources in the same way that the changer for the Gulf of Mexico going forward. •

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 • GULF OF MEXICO

Well abandonment rates in shallow-

water Gulf of Mexico off historic highs
MARK J. KAISER, CENTER FOR ENERGY STUDIES, LSU

IN THE THIRD PART of this series on Gulf of Mexico well before structures are installed to protect the wellbore or
activity, the focus is on abandonments. Circa 2017, 52,964 subsea equipment is ready to handle production. Producing
wells have been drilled in the Gulf of Mexico and 27,405 wells wells that cease production for a long period for time are
have been permanently abandoned, about half of all wells temporarily abandoned if operators expect to use them in
drilled. Remaining well inventories at the end of 2017 totaled the future (e.g., side tracked) or if they are waiting to be
25,559. permanently abandoned. Permanent abandonment is the
Permanently abandoned (PA) wells represent the final final state of all wells.
state of a wellbore, while temporarily abandoned (TA) wells Wells may switch status between production and tempo-
represent a transitory state for wells on their way to produc- rary abandonment one or more times during its lifetime,
tion or permanent abandonment. and whenever a side track is drilled it will create a new well
and forward path.
PATHWAYS
There are many different pathways wells follow during their ABANDONMENT CLASS
lifetime depending on why they were drilled, where they Wells that have not produced for many years are required
were drilled, how they were drilled, and whether the well to be placed in TA status with producing formations plugged
was a keeper (successful) or not. with cement barriers and a bridge plug near the mudline.
After wells are drilled they are temporarily abandoned TA wells may remain inactive for many years, but all TA wells

F1: WELL LIFE-CYCLE PATHWAYS FROM SPUD TO ABANDONMENT

Install infrastructure

Complete
l
TA Produce
fu well
ss
c ce
Su
Exploration No
Shut-in Shut-in
well ts (inactive)
uc
ce
ss
ful

l Sidetrack TA or PA TA Sidetrack Produce TA

sfu
es
ucc
tS
Development No
Su PA
well cc PA
es
sfu
l
Complete
TA Produce
well

Install infrastructure

48 WWW.OFFSHORE-MAG.COM | OFFSHORE NOVEMBER 2018

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 GULF OF MEXICO •

WELL INVENTORY CIRCA 2017 F2: SHALLOW-WATER PERMANENT AND TEMPORARY WELL
<400 ft >400 ft Total ABANDONMENTS IN THE GULF OF MEXICO
Drilled 46,243 6,733 52,964
1,000 30,000
Permanently
25,254 2,151 27,405 PA, <400 ft.
abandoned 900
TA, <400 ft. 25,000
Remaining 800
20,989 4,582 25,559

Cumulative abandonments
circa 2017

Well abandonments
700
Producing 20,000
2,644 819 3,463
circa 2017 600
Source: BOEM, March 2018 500 15,000

400
10,000
will eventually be classified as perma- 300
nently abandoned after final operations 200
5,000
are performed and conductors/risers
100
are cut and removed.
0 0
Under exceptional circumstances
1947
1949
1951
1953
1955
1957
1959
1961
1963
1965
1967
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
2015
2017
(e.g., hurricane destruction) TA wells
may be considered the final status of a Source: BOEM, March 2018
wellbore.
Permanent abandonment activity
and PA wells are unambiguous in the F3: DEEPWATER PERMANENT AND TEMPORARY WELL
sense that their status denotes the end ABANDONMENTS IN THE GULF OF MEXICO
state of the well and once entered will
not lead to another state (unless found 140
to be leaking in which case the well will PA, >400 ft.

be reclassified as TA during remedia- 120 TA, >400 ft.

tion operations). TA activity and TA

100
status wells are more elusive because
Abandoned wells

of their different objectives and tran- 80

sitory nature.
Temporarily abandoned wells are 60
neither producing nor permanently
40
abandoned but are on their way to one
of these states. Whereas PA inventory 20
can only increase with time, TA inven-
tories can increase or decrease as status 0
1966
1968
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
codes change and new stock added.

ACTIVITY Source: BOEM, March 2018

In water depth <400 ft (122 m), there were
25,254 PA wells out of 46,243 wells drilled
in the region, leaving 20,989 wells remain- 300 permanent abandonments per year and has stayed above this level ever since.
ing to be permanently abandoned circa In later years larger numbers of well abandonments coincided with higher structure
2017. decommissioning activity, reaching 500 permanent abandonments in 1983 and 900
In water depth >400 ft, there were permanently abandoned wells in 2009 and 2010, historic highs.
2,151 PA wells out of 6,733 wells spud, Before structures are decommissioned, all wells associated with the structure must
leaving a well inventory of 4,582 deepwa- be permanently abandoned, and thus one would expect a correlation between PA
ter wells remaining to be plugged circa activity and structure decommissioning.
2017. In deepwater, PA activity is on a much smaller scale because well inventories are
In shallow water, plug and abandon- much smaller, younger, and potentially more valuable until fields are exhausted. TA
ment activity began soon after the first activity in deepwater is higher on a relative basis because of development requirements
wells were drilled in the region, either and option value.
because they were not successful or be- Circa 2017, about 25% of deepwater abandonments activity are TA wells (566/2,151),
cause of production cessation. By the compared to about 12% (3,063/25,254) in shallow water. •
mid-1960s abandonment activity reached

NOVEMBER 2018 OFFSHORE | WWW.OFFSHORE-MAG.COM 49

1811OFF_49 49 11/5/18 10:20 AM

 • DRILLING & COMPLETION

The MPD choke and Coriolis

meter as installed on the rig.
(Courtesy Halliburton)

MPD solution helps maintain

wellbore integrity, reduce NPT
Application employed on drilling campaign offshore Asia

SCOTT MILLER, HALLIBURTON

ON A RECENT JOB in the Asia/Pacific region, Shell identified NARROW MARGINS

the need for a managed pressure drilling (MPD)/managed Planning was critical to minimize operational risks and opti-
pressure cementing (MPC) solution on two water injection mize drilling efficiency on this MPD/MPC job. Halliburton
wells. The solution was needed to maintain constant bottomhole worked closely with Shell to generate detailed modeling and
pressure while drilling a narrow pressure margin in the 10-5/8- develop a thorough execution plan for successful navigation
in. x 12-in. section. through the narrow margins expected.
Previous drilling efforts in this section had encountered issues By adjusting the static mud weight, at times up to one pound
with borehole instability and weak, faulted sand structures. It per gallon under the conventional drilling target weight, the
was also determined through further analysis of previous MPD crew had the surface pressure flexibility to manipulate
non-productive time (NPT) and pressure-related events that bottomhole pressure (BHP) and confidently maintain borehole
the 8½-in. reservoir sections would benefit from MPD constant stability. The plan also included a strategy for staying within
bottomhole pressure techniques. the BHP window during tripping in and out of the hole, and

50 WWW.OFFSHORE-MAG.COM | OFFSHORE NOVEMBER 2018

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 DRILLING & COMPLETION •

for running casing and cementing operations.

Employing a patented surge and swab pressure compensa-
tion feature during tripping pipe and, more importantly, while
running the 9-5/8-in. liner into the open hole, enabled the crew
to maintain a constant BHP in these critical operations.
Additionally, a dual gradient tripping strategy of spotting a
highly viscous pill with a heavier kill mud on top allowed op-
erations to keep the lighter mud in the hole, without needing
to displace the entire system to kill weight mud. This approach
saved time and ensured that the proper BHP was attained
while tripping pipe, and while switching from drilling to ce-
menting operations.
Once the plan was solidified and the equipment installed Real-time information provided by the GeoBalance solution helps
crews maintain constant bottomhole pressure. (Courtesy Halliburton)
and ready for operation, the MPD team spent time training all
other parties directly involved in the project. This served to AVOIDING NPT
familiarize the crews with operational differences with con- Using experienced and competent crews, along with the ap-
ventional drilling practices, and the communication protocol propriate technology, Halliburton and Shell collaborated to
required when making connections. successfully execute a safe drilling campaign. Halliburton
helped the operator avoid two weeks of NPT related to borehole
DRILLING TO DEPTH stability, reservoir influxes and losses, controlling the BHP at
The MPD/MPC control system was configured to receive data the critical point in the well during drilling operations, including
from several ancillary sources for the best possible pressure tripping and running and cementing the liner. This operation
control downhole. Fingerprinting, or validating, the system’s for Shell in Asia/Pacific is expected to pave the way for similar
actual behavior with the model and conducting mock opera- operations in this region and beyond. •
tions in the 12¼-in. section served as a valuable final check of
the system’s control response and helped solidify procedures
during the actual MPD operations. The two wells were batch
drilled, with a 2,214-ft, 10-5/8-in. x 12-in. section drilled on the
first well and a 1,465-ft, 10-5/8-in. x 12-in. section drilled on
the second well. After drilling, the bottomhole assembly was
pulled back to the shoe and the high viscous pill was
spotted.
Above the pill, the drilling fluid was displaced with a 1.1 ppg
heavier mud. Static flow checks were performed before pulling
the RCD and preparing to run the liners. The 9-5/8-in. liners
“I can think of no one better to translate the complexities of
for both wells were run to total depth (TD), rolling over the
natural gas liquids into a more easily understandable subject.”
fluid back to the lighter mud when the shoe was reached with
— Frank H. Richardson, President and CEO, Shell Oil Company, Retired
the liner.
MPC technology was successfully utilized to cement the Natural Gas Liquids: A Nontechnical
9-5/8-in. liners on both wells in order to maintain ECD above Guide is a comprehensive overview
the sand stringer pore pressure, while avoiding losses to weak of NGLs from production in the oil
patch to consumption in the fuels and
shale/faulted zones. GB Setpoint, the Halliburton real-time
petrochemicals industries.
hydraulics model, was an important asset during both the MPD
and MPC operations. By incorporating real-time data, tracking Learn what is behind natural gas liquids:
multiple fluids in the wellbore and accounting for surge and • How they are produced
swab while running the liner, the crew was able to successfully • How they are transported
navigate a narrow window within 0.2-0.3 ppg of the target BHP. • How they are consumed in the
fuels and petrochemicals industry
Once both 10-5/8-in. sections were drilled and cemented, the
• Profles of successful NGL companies
8½-in. section on the second well was drilled another 1,865 ft
to TD, and the 8½-in. section on the first well was drilled an-
other 2,698 ft to TD, where the wells were then completed. 226 Pages/Hardcover/2014
Brief dynamic losses were encountered while initially drilling
the first 8½-in. hole, which were remedied by reducing the rate ORDERR YO
ORDE UR CCOP
YOUR OPYY TO
OP TODA
DAYY AT
WWW.
WW W.PE
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WELL
LLBO
BOOK
OKS.
S.CO
COMM
of penetration (ROP) and revising the ECD target down 0.1 OR CCAL
ALLL 80
800-
0-75
752-
2-97
9764
64
ppg.

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 • ENGINEERING, CONSTRUCTION & INSTALLATION

FLNG market gears up

for second wave of projects
Global capex to total $42 billion

MARK ADEOSUN, WESTWOOD GLOBAL ENERGY

DESPITE THE CANCELLATION of

GLOBAL FLNG CAPEX BY REGION 2013-2024
several floating liquefaction projects
and financing concerns for other FLNG 11
projects, Westwood expects capex on 10 Africa
Asia
FLNG units to total $42 billion over the 9 Australasia
2019-2024 period. This represents a 8 Middle East
Expenditure ($bn)

172% increase compared to the total North America

7
expenditure of $15.5 billion over the
6
2013-2018 period. Historically, expen-
5
diture has been driven by the pioneering
4
projects, with majority of spend at-
tributed to Shell’s Prelude FLNG, with 3
an estimated cost of approximately 2
$3,500 per ton per year. Other projects 1
such as Petronas’ PFLNG Satu, Golar’s 0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Hilli Episeyo, and Exmar’s Caribbean
FLNG, also contributed to spend during Source: Westwood’s World FLNG Market Forecast
the hindcast. Despite the challenges of
the delayed delivery schedules for these
projects, the consistent and stable level
of LNG production from both PFLNG reduction within the supply chain caused by the downturn. Hence, a second wave
Satu and Hilli Episeyo (the only units of FLNG project sanctioning is expected to benefit from lower supply chain costs
currently in commercial production) and innovative engineering and technology, with the cost per unit liquefaction
has not gone unnoticed by investors. capacity averaging $856 per ton per year for newbuild vessels. This represents a
The successful production from these 66% decline compared to the average cost per ton per year for Petronas’ PFLNG
units, the positive performance test on Satu and Shell’s Prelude FLNG vessels. However, the cost of a converted FLNG unit
the Caribbean FLNG in September 2016, is expected to be approximately 41% cheaper, averaging $503 per ton per year over
and the expected commencement of the forecast.
commercial production from the Pre- Over the forecast period, North America accounts for the largest market in terms
lude FLNG unit in late 2018, represents of overall expenditure on liquefaction vessels, with expenditure totaling $23.9
a proof-of-concept and a win for the billion. Despite not having any historic FLNG investments, the region will account
FLNG industry. for approximately 60% of global expenditure over the 2019-2024 period. This will
Following the success of these units, be driven by Fairwood’s Delfin LNG project and GLS’s Main Pass Energy hub. Both
an upsurge in investments is expected projects have proposed a total of six liquefaction units, with the first unit scheduled
over the forecast, with a total of 23 to be installed on the Delfin LNG project by 2022. This would be the first FLNG
FLNG units, including NewAge’s Etinde export scheme in the US. The first Delfin FLNG is expected to pass FID in early
FLNG unit, expected to pass final in- 2019, as the company has turned to Chinese banks for project funds. However,
vestment decision (FID) over the 2018- trade disputes between the US and China, in addition to concerns over the potential
2024 period. Given the robust drivers transfer of American technology and intellectual property to China, could present
supporting LNG demand in the long an issue for several US projects seeking finance from the Far East nation.
term, such as the decline in local gas In Canada, Steelhead’s Kwispaa (At-Shore LNG) project is expected to be sanc-
production, fuel switching, and eco- tioned by the end of the decade, with a proposed start-up of 2024 and initial pro-
nomic growth, some operators are look- duction of 12 mmpta. The project will involve two FLNG units, with FID scheduled
ing to capitalize on the significant cost for 2020.

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 ENGINEERING, CONSTRUCTION & INSTALLATION •

In Africa, gas discoveries in remote areas such as Tortue Scarborough, and Cash-Maple have been shelved, Trans-
will further necessitate the use of the FLNG solution. Over boarder Energy plans to develop a small-scale FLNG project
the forecast period, Africa will account for 37% of expenditure, to be deployed in the offshore gas region of Australia, with
with seven FLNG units expected to be installed in the region an export capacity of 1.2 mmpta, by 2025.
over the 2019-2024 period. Compared to North America,
where the capacity of FLNG units to be installed will range CONCLUSION
between 3-6 mmpta, units to be installed in Africa will have Despite various project financing hurdles, the success of the
a relatively smaller liquefaction capacity averaging 2.3 mmpta. pioneering projects will serve as a yardstick for stakeholders’
In the near term, spend in Africa will be driven by Eni’s Coral confidence. Hence, financing is expected to become easier
FLNG unit which was sanctioned in 2Q 2017 at a cost of in the long term, as a track record for the technology is es-
approximately $5 billion. Samsung Heavy Industries recently tablished. A lease and operate model may evolve for medium
commenced the fabrication of the hull of Coral FLNG which and smaller deployments. Westwood expects 2018 to remain
will be installed in 2,000 m (6,562 ft) water depth off Mozam- a landmark year for the industry, as Golar’s Hilli Episeyo en-
bique with an LNG throughput capacity of 3.4 mmpta. Start-up tered commercial production. This project represents a proof-
is planned for 2022. Another FLNG unit that recently passed of-concept for low cost FLNG development.
FID is NewAge’s Etinde JV FLNG. An SBM-JGC consortium With forecast spend that is expected to increase at an 18%
was awarded a contract to build an FLNG unit with a through- CAGR, the entire LNG industry should brace itself for a stormy
put capacity of 1.4 mmpta, and a planned start-up in 2023. ride, as trade disputes between the US and China escalate.
Despite the failure of the OneLNG joint venture between This could harm investments in several US LNG and FLNG
Golar LNG and Schlumberger, which has led to unexpected projects, as Chinese gas demand is underpinning a raft of
delays for the Fortuna FLNG project, Ophir Energy has not LNG export projects in the US. Furthermore, this could also
abandoned its development plans. The company’s plan is to hamper the flow of capital from Beijing, as China is expected
reach FID before the end of 2019 prior to the expiration of to focus on domestic investments to mitigate the impact of
the block license. Ophir Energy has now switched its focus US sanctions on its economy. This political dispute represents
to navigating a tricky financing huddle to be able to deliver a downward risk to Westwood’s forecast expenditure in North
the project. America, as a 25% import tariff will see US LNG priced out
Other units expected to be sanctioned in Africa include of the Chinese gas market for various long-term contract
BP’s Tortue FLNG. Earlier in the year, Golar LNG signed a negotiations. However, post-FID projects will remain resilient
draft commercial, construction, and financing agreement against tariffs, as they have already secured long-term export
with BP to use the Golar Gimi vessel to develop the Tortue contracts.
project. The potential for additional FLNG units within block Furthermore, an evolving supplier’s contracting model and
C-8 is very significant, as BP is considering up to three addi- gas feedstock concerns for existing projects remains a concern
tional FLNG units for the next phase of the development of for LNG producers.
the Tortue-Ahmeyim project. An additional FLNG unit is also Aside from escalating gas demand, driven by the need to
under consideration for the Yakaar-Teranga development switch to cleaner sources of energy and diversify gas supply,
located in the Cayar Offshore Profond block off Senegal. BP other key factors driving FLNG demand include technological
and its partners are expected to replicate the Tortue devel- advancement, monetization of stranded gas reserves, reduced
opment concept to develop the 20-tcf gas field. development costs, shorter lead times, relocation flexibility,
FLNG expenditure in Africa will remain buoyant over the and lower space requirements. In the decades ahead, natural
forecast as other projects currently under consideration in- gas will continue to play an increasingly important role in
clude Poly-GCL Petroleum’s Djibouti FLNG. The development meeting the world’s energy demand. In the long term, signif-
is planned in three phases, with first LNG production sched- icant gas reserves discovered in remote regions such as the
uled for 2021 at 3 mmpta. A further phase will involve addi- East African basin will continue to make the case for FLNG
tional units expanding the capacity of the project to 10 mmpta. as a development solution. •
The development will involve the use of Sembcorp Marine’s
GraviFloat FLNG concept, with FID expected in 2019.
Beyond Africa, other FLNG projects include Petronas’ THE AUTHOR
PFLNG Dua. The unit is currently under construction at Mark Adeosun is the author of the World FLNG Market Forecast 2019-
Samsung Heavy Industries’ shipyard, with start-up scheduled 2024. Since joining Westwood in 2013, Mark has authored several
for 2020 at Murphy Oil’s Rotan field offshore Malaysia. industry reports and has also conducted high-level research into
Australasia is forecast to account for 6% ($2.5 billion) of various oil and gas projects, with a focus on offshore drilling, subsea
global floating LNG liquefaction capex over 2019-2024. In- installation activities, and LNG. Mark has undertaken market modeling
vestment will predominantly be associated with the Kumul and analysis, focusing on offshore markets and E&P activities. Mark
FLNG and Western LNG Project offshore Papua New Guinea. has a BSc degree in Geology and a master’s degree from the University
While several Australian FLNG projects such as Browse, of South Wales in Geographic Information Systems.

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 • PRODUCTION OPERATIONS

Low shear valve simplifies

separator debottlenecking
Flow control technology tested offshore Norway

NIELS VAN TEEFFELEN, TYPHONIX AS

RUNE HUSVEG, TYPHONIX AS
ROBERT VERWEY, MOKVELD VALVES BV

CONVENTIONAL CHOKE AND CONTROL valves are known body optimized to develop a suitable vortex pressure drop
to mix and emulsify the petroleum phases, leading to down- and 3) a flow conditioner which transom the vortex flow
stream separation problems. Emulsification and droplet back to an axial outlet flow. The swirling flow within the
breakup are results of high shear forces in the throttling system reduces shear forces and the level of turbulence, and
valves. Typhonix AS, in close cooperation with Mokveld the consequence is that the controlled fluid phases are less
Valves BV, has developed a low shear flow control system to mixed and emulsified.
optimize and debottleneck separators. Focusing on oil-water separation, the technology can
advantageously replace valves located upstream of the main
separation equipment or produced water treatment equip-
ment, e.g., upstream large three-phase separators, hydrocy-
clones, degassers, and flotation units.
Depending on the application, benefits of debottlenecking
with the low shear system are:
• Improved oil and water quality
• Cost-efficient separation system enhancement
• Increased separator capacity
• More compact separation systems
• Longer economic production life of high water cut wells
• Reduced need for separation enhancing production
chemicals
• Less need for heating.

FIELD RESULTS
The Typhoon Valve System won the Innovation Award at ONS 2018. This technology has, through several years of experimental
investigations, documented a significant positive effect on
The Typhoon Valve System is a cyclone-based valve con- downstream separation, improving oil and water quality.
cept, using the principles of a vortex to control the flow rate Results from trials and field installations show performance
and pressure of a fluid. The internals include 1) a cage with improvement across a wide range of process conditions and
tangentially oriented orifices to regulate and transform an fluid compositions.
axial inlet flow into a vortex flow, 2) a venturi-shaped cyclonic The separation benefit of the system was first documented
at realistic test conditions in Equinor’s multi-phase flow loop
in Porsgrunn, Norway, in 2009. Medium crude oil from the

Illustration of the Typhoon

Valve System internals. Reduction of oil in the produced water after installing the technology.

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 PRODUCTION OPERATIONS •

Gullfaks field was used together with natural gas and F1: OiW AS FUNCTION OF WATER CUT
salt water. Replacing the conventional multi-stage
Constant liquid rate, gas rate, pressure
valve with the Typhoon Valve System, systematically drop and valve opening
reduced the oil content in the water downstream of 800
Typhoon
the separator by 60-90%, and the water in oil by an 700
Standard
average 25%. 600
For the offshore trial, the system was installed on 500

OiW (ppm)
Oseberg C, an Equinor-operated production facility 400
in the North Sea. Here, the oil content in the water 300
from the test separator was systematically reduced
200
by more than 45%, on average, and the water in oil
100
content was on average reduced by 35%.
For an offshore test campaign, the system was 0
50 60 70 80 90
installed on the Fram West flowline on the Troll C Water cut, %
platform. Here, it systematically reduced the average
oil in water content by 60% compared to the sin-
gle-stage conventional choke valve for this installation.

SEPARATOR DEBOTTLENECKING F2: OIL CONCENTRATION IN WATER AT TEST SEPARATOR OUTLET

Due to million years of retention time, oil
and water have formed separate layers 180
in the reservoir. Unfortunately, during OiW HC in, typhoon valve
160
Average typhoon
production, the phases are mixed. Mixing 140 OiW HC in, standard valve
of these naturally immiscible liquids caus- Average standard
120
es an oil-water emulsion. In the produc-
OiW (ppm)

tion systems, liquid mixing is mainly 100

caused by the choke valves, control valves, 80
and pumps. The higher the intensity of 60
the mixing, the tighter the emulsion be-
40
comes, forming micron-sized droplets of
oil in the water and water in oil. Tighter 20
and more stable emulsions are harder to 0
separate and therefore require an elabo- 16.3.12 17.3.12 18.3.12 19.3.12 20.3.12 21.3.12 22.3.12 23.3.12
rate separation system in addition to the
use of chemicals and heat to separate the
liquids. separation capacity or improving the downstream treatment
Quality specifications for the export oil and produced systems to handle the reduced product quality from the bulk
water set the requirements for the design of the separation separation system.
system. Based on pre-estimated production profiles, the Conventional separator performance upgrades require
separation system is designed to meet said quality criteria extensive modifications. Available options depend on the
over the lifetime of the field. field’s location (offshore or onshore) as well as the field’s
In reality, the well performance deviates from the pre-es- economy. Installation of a larger separator or a parallel vessel
timated profiles, and the operating conditions may exceed is one of the options, which, apart from the economics, may
the design envelope of the separator. When this occurs, the be technically feasible onshore, but is very unlikely to be
level of impurity of the separated phases becomes a bottle- feasible offshore due to space limitations. Other options are
neck. Expensive and retrofitting the separator internals to provide better sepa-
elaborate modifica- ration efficiency or to add compact pre-separation equipment
tions are normally upstream of the separator.
required to restore In cases where the amount of water remaining in the oil
the production rates (WiO) or the amount of oil remaining in the water (OiW)
to its required quality. after separation limits the throughput of the separator, the
Several possible solu- low shear system can be used as an effective debottlenecking
tions are available, solution.
mainly focusing on Separation of the fluids in traditional gravity separators
increasing the bulk strongly depends on the dispersed phase droplet sizes (as

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 • PRODUCTION OPERATIONS

F3: WATER QUALITY AS FUNCTION OF RETENTION TIME While fluids are flowing horizontally
10% WC, 5 BAR dP, GLR 12 through the gravity separation section
toward the outlets, dispersed droplets
have a chance to rise to the oil-water
Standard
Typhoon interface. Based on the retention time,
which is determined by the flow rate
and the height of the oil/water layer,
OiW, ppm

the minimal droplet size that can be

separated can be determined.

CASE STUDY: BROWNFIELD

For brownfield applications, the sep-
arator size is already determined. In-
stalling low shear valves upstream of
0 5 10 15 20
the separator will increase the size of
Retention time, min.
the droplets entering the separator, and
thereby increase the separation effi-
ciency. Use of low shear valves in this
shown by Stoke’s Law). The larger the droplets, the more efficient the separation. position will, therefore, reduce the wa-
The separation efficiency of a gravity separator therefore strongly depends on the ter-in-oil and oil-in-water content of
droplet size distribution and the degree of emulsification of the fluids entering the streams leaving the separator for
the separator. This system, being a low shear flow control technology, reduces the existing production rates. In cases
droplet break-up and fluid emulsification upstream of the gravity separator in where it is sufficient with conventional
comparison to conventional valve technologies. valves, low shear valves can be used to
By improving the separability of the feed stream, by reducing droplet break-up increase the separators capacity. Larger
and emulsification, the separator throughput can be increased. droplets separate more quickly, en-
The graph in F3 shows the separator retention time as a function of the water abling a higher liquid flow rate through
quality on the separator outlet. It is seen that a specific water quality is reached the separator without changing the
at a much shorter separation time when the low shear system is used upstream separator outlet oil and water qualities.
of the separator, compared to that of the conventional valve. This is also valid for cases where pro-
One of the benefits of the low shear approach is that it does not require any duction is restricted due to underper-
modifications to the separator itself or the installation of any new additional forming separators caused by shear in
equipment upstream. Replacement of the standard choke or control valve with valves upstream of the separator.
the low shear system is, therefore, a very cost-efficient way to debottleneck the To quantify the effect of using a low
separation system and free additional capacity. shear valve, a conservative average
droplet size increase of 10% to 15% is
DROPLET SETTLING AND SEPARATOR CAPACITY used in the case study to evaluate the
The droplet settling theory, being one of the primary techniques used for the result on the separator capacity. Based
sizing of gravity separators, can be employed to quantify the separator capacity on the field test results presented ear-
increase enabled by the installation of a low shear valve. The droplet settling lier, this is a realistic assumption. Fur-
theory was developed to estimate the separator volume and dimensions necessary thermore, to quantify the effect of the
to separate the droplets of the dispersed phase above certain droplet diameter larger droplets when using a low shear
(cut-off diameter) at a given flow rate. The theory is based on the settling law Typhoon Valve System, the droplet set-
expression, such as tling theory can be used. Because of
Stoke’s Law. For vi- the increased efficiency of the separa-
sual simplicity of tor, a larger droplet cut-off diameter
the theory, the flow can be used while still maintaining the
in a weir separator oil and water quality as before. For a
is considered. given vessel, the increase in cut-off
After the feed droplet diameter reduces the required
stream enters the retention time, in other words, the pro-
separator, gas, oil duction rate can be increased. A 10 to
and water layers 15% increase in the cut-off droplet size
are established due to use of this system, will enable
Settling trajectories of dispersed oil and water droplets that would
within the vessel. have 100% removal efficiency. approximately 20 to 30% increase in

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 PRODUCTION OPERATIONS •

production flow rate for a constant oil and water qualities CONCLUSION
on the separator outlet. Reduction of shear forces acting on the fluids upstream of
separation trains by use of low shear flow control technology,
CASE STUDY: GREENFIELD like the Typhoon Valve System, minimizes droplet breakup
Including this system in the process plant design from the and the formation of tight emulsions, thereby improving
planning phase will help to optimize the separation system separation and increasing separation capacity.
and prevent (or significantly reduce) the formation of tight The system can also be used to increase the separator
emulsions. A thorough evaluation of the capacity constraints efficiency instead of increasing its capacity. This approach
can result in more compact separators necessary to satisfy is particularly useful when there are problems due to tight
the design parameters with regards to the separation effi- emulsions. Additional benefits could be a reduced require-
ciency required. The droplet settling theory can be success- ment for separation enhancing production chemicals like
fully applied for the sizing of the separator with regards to demulsifiers and reduced heating of the liquids.
liquid carry over to gas phase, as well as oil and water carry Implementation of the low shear flow control technology
over to the corresponding produced water and bulk oil is a simple and efficient solution for debottlenecking the
streams. liquid capacity of a three-phase gravity separator. The system
Without available droplet size information, it is common retrofit does not require any modification to the separator
to choose a recommended cut-off diameter size for separator itself. In most of the cases, it can simply replace existing
sizing. When using the same conservative assumption of choke or control valves. •
this system’s average droplet sizes increase of 10-15%, the
effect on the required separator size can be evaluated. The
10 to 15% increase in the droplet cut-off size when using the
system results in an approximately 15 to 25% reduction of
the effective liquid separation volume required.

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1811OFF_57 57 11/5/18 11:36 AM

 • PRODUCTION OPERATIONS

DATUM compressors deployed on an FPSO

platform. (All images courtesy Siemens)

Gas turbine power solutions minimize

weight, footprint on FPSOs
Lower costs, reduced emissions can also be realized

ERIC CARLOS, SIEMENS OIL & GAS, AMERICAS

OPTIMIZING THE LIFECYCLE PERFORMANCE of floating, When coupled with digital solutions that are designed to lever-
production, storage, and offloading (FPSO) vessels is highly age the power of data amassed from compression and other
contingent on the incorporation of topsides packages that can critical topsides assets, operators have been able to unlock
efficiently and reliably deliver the power to exploit resources in hidden value and optimize production in a way that has previ-
a range of water depths and operating conditions. At the same ously not been possible. In addition to reducing capital expen-
time, offshore operators must be cognizant of the need to reduce ditures, digital solutions enable remote operation with integrated
emissions and minimize the weight and footprint of topsides automation and safety systems and can lower operating costs
modules, the latter of which can substantially impact facility with reduced staffing, predictive analytics and integrated asset
development costs. level optimization.
In recent years, advances in the design and engineering of
critical equipment, such as gas turbines, electric motors, and FPSO MARKET
compressors have helped the industry meet these demands. As the oil and gas industry continues to recover from one of its

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 PRODUCTION OPERATIONS •

worst ever downturns, the market for FPSO vessels has followed
suit. According to Energy Maritime Associates (EMA), 13 FPSO
vessel contracts have been awarded since 4Q 2016[1]. This
comes after a period of nearly two years without a single order.
A total of three FPSO contracts have been awarded since the
beginning of 2018, with an additional 10 that could potentially
reach contract stage by year’s end.
Overall, the FPSO vessel market has experienced more robust
growth than other offshore production facilities. This is largely The SGT-750 gas turbine is designed to provide long maintenance
due to the inherent advantages these facilities provide including intervals.
increased operating flexibility in a wide range of water depths,
fasttrack development, conversion possibilities, and storage A waste heat recovery unit will be supplied to recover gas
capacity. turbine exhaust heat that will be distributed as a heated liquid
to prevent ice build-up on key surfaces of the superstructure.
POWER SOLUTIONS Equinor’s selection of the SGT-750 turbine for the first offshore
FPSO vessels have made it increasingly cost effective for oper- application in a production-critical service is telling of the
ators to exploit oil and gas resources in deeper waters and technical assessment performed. The SGT-750 gas turbine was
harsher environments; however, their development presents subject to extensive qualification testing to ensure the necessary
many technical challenges with regards to topsides levels of reliability and serviceability.
development. Equinor continues to seek solutions that will enable it to
In recent years, production equipment configurations have optimize production while minimizing environmental impacts.
become more complex. This is particularly the case for FPSOs The SGT-750 gas turbine met project requirements for high
operating in sour field developments or where enhanced oil power density, extended maintenance intervals (designed for
recovery techniques are utilized. On such projects, the need to 17 days in 17 years), and reliability, ensuring production uptime
implement optimized topsides configurations that minimize and profitability. The unique design of the compression train
footprint and weight, while still meeting project requirements will help Equinor cost-effectively exploit the deepwater reservoir
for processing, production, transportation, serviceability, reli- while reducing total CO2 emissions. Delivery for the equipment
ability, etc. can be especially difficult. package is anticipated in mid-2019 with first oil planned for
Siemens has taken strategic steps to help the industry over- 2022.
come these challenges by developing power and compression
solutions that conserve weight and space, while providing the COMPRESSION TRAIN DESIGN
necessary horsepower to exploit deepwater reserves. The com- Siemens recently delivered power generation and compression
pany has also launched an integrated digital solution designed equipment for another FPSO vessel offshore Guyana in South
to reduce FPSO project capex and opex, shorten development America. The facility is the first oil and gas development project
cycles, and minimize interfacing risk. off the coast of Guyana. The equipment is scheduled for com-
Over the course of the last year, the company was awarded missioning in late 2019.
contracts on four FPSO vessels. Details regarding the unique Four SGT-A35 aeroderivative gas turbines were supplied for
equipment packages that were provided, along with insight the FPSO vessel, each with a power output of 32.1 megawatts
into operators’ requirements for each of the projects, are dis- (MW). The SGT-A35 turbine utilizes a unique package design
cussed below. that provides accessibility and serviceability. This includes a
lightweight torque-tube baseplate and internal jib crane that
MINIMIZING ENVIRONMENTAL IMPACT
Siemens was selected to engineer, manufacture and commission
the gas turbine-driven compression train for Equinor’s ( formerly
Statoil) FPSO vessel located in the Johan Castberg oilfield in
the Barents Sea.
The equipment package includes a 41-MW SGT-750 gas
turbine that will drive two high-efficiency DATUM compressors
operating in a tandem arrangement. The turbine features a
unique design that eliminates the need for a speed-increasing
gearbox, which reduces the weight and footprint of the package.
The compressors will reinject gas into the oil reservoir, providing
pressurization and eliminating the need for capture or flaring,
the latter of which is not permissible in the region. The SGT-A35 aeroderivative gas turbine incorporates a package
design that is said to improve accessibility and serviceability.

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 • PRODUCTION OPERATIONS

Topsides 4.0 is designed to offer a holistic digital lifecycle approach to rotating equipment and electrical and automation systems.

simplifies engine removal and installation. ation packages. The SGT-A35 ( formerly the Industrial RB211)
The supply scope also includes three electric motor-driven will be coupled with an MT30 two-pole synchronous power
compressor trains. Once commissioned on the FPSO, one electric turbine from the marine Trent engine, which will eliminate the
motor-driven DATUM compressor train will reinject gas with need for a speed-decreasing gearbox. It will mark the first instance
a pressure up to 585 bar (8,485 psi) and the other two main gas in which this configuration of engine and power turbine has been
compressor trains with a discharge pressure of 200 bar (2,900 deployed worldwide. Two SGT-A35-driven DATUM compressor
psi) will compress the gas that is separated from the fluids in trains will also be installed to reinject CO2 to pressurize the
the topsides process up to the pressure required for the injection reservoir at more than 250 bar (3,626 psi). These attributes make
machine to compress the gas further to the required
injection pressure.
Gas density is a critical parameter that affects a
compressor’s stability and its ability to operate reliably.
The compressors installed on this FPSO utilize tech-
nology that challenges the commonly accepted oper-
ating paradigm, making it possible for the compressors
to become more stable with increasing pressure and
density.

AN INDUSTRY FIRST
Siemens is also supplying four gas turbine power gen-
eration packages and two compressor packages for the
FPSO Carioca MV30. The facility will be deployed in
the Sépia field owned by Petrobras, located in the giant
“pre-salt” region of the Santos basin approximately 250
km (155 mi) off the coast of Rio de Janeiro, Brazil.
MODEC is responsible for engineering, constructing,
mobilizing, installing, and operating the facility.
Power generation on the vessel will be achieved using Siemens says it has been awarded contracts for power supply system, drives
four SGT-A35 aeroderivative gas turbine power gener- and integrated process solutions on four FPSO vessels in the last year.

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 PRODUCTION OPERATIONS •

Digital solutions for FPSOs enable remote operation with integrated automation and safety systems and can lower operating costs.

the packages uniquely suited for offshore FPSO applications, With the digital twin, engineers have continuous access to
where space and weight are often limiting factors. as-is asset data and can plan maintenance campaigns based
The equipment is scheduled for delivery in late 2018. As part on condition monitoring analytics. An integrated control and
of the agreement, Siemens will also provide service and main- safety system solution is designed for remote control and mon-
tenance for the supplied components over a period of 21 years. itoring so customers can improve safety and reduce costs by
shifting labor resources from offshore to onshore. Combined,
ELECTRIFICATION AND DIGITIZATION these benefits combined can reduce operating expenditures by
Siemens will supply the full electrical and ICSS scope, together more than 10% to 15% each year.
with four SGT-400 gas turbines, waste heat recovery units, a
flash gas compressor, and two sales gas compressors for an FPSOs REMAIN CRITICAL
FPSO in the eastern Mediterranean Sea. Commissioning of the FPSO vessels are increasingly critical to cost-effective exploration
facility is expected in the first half of 2021. and production of deepwater resources and in turn essential
The equipment will produce both electricity and heat to to meeting global hydrocarbon demand. To mitigate operational
extract and process the production in the open ocean, as well and financial risks—the latter exacerbated by cyclical market
as export the gas to shore. downturns—and to minimize environmental impact, FPSO
Unique to this FPSO is the first ever full-scale deployment projects require careful upfront planning and deployment of
of Topsides 4.0, which Siemens unveiled last year as part of a innovative power solutions that minimize weight, footprint,
strategy to help offshore producers transition to fully digitalized and emissions.
operation. The application of integrated digital solutions that allow
Topsides 4.0 is a holistic digital lifecycle approach to rotating operators to leverage previously untapped equipment data has
equipment and electrical and automation systems. It begins also proved effective in reducing FPSO vessel lifecycle costs and
during the conceptual and design phase of a project and is improving the overall economics of offshore production. •
designed to reduce capital and operating expenses, shorten
project development cycles, minimize interfacing risk, and THE AUTHOR
decrease offshore manpower requirements. Key features and Eric Carlos is Vice President for Siemens Oil & Gas, Americas
capabilities that will enable these advantages include digital
project management and manufacturing, virtual testing and REFERENCES:
commissioning, and delivery of an intelligent “digital twin” of Floating Production Market Recovers in 2017 with Over $15 Billion in
the topsides facility, which can be used by operators for lifecycle Orders. Energy Maritime Associates. April 2018. https://energymari-
decision-making support and asset optimization. timeassociates.com/press/q2_2018_eng-3/

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 • EQUIPMENT & ENGINEERING

Heave compensated rig floor

enables MPD, helps reduce NPT
Technology expected to be game changer for North Sea

DIETER WIJNING, HUISMAN

THE KEY CHALLENGE for floating rigs

in the North Sea is reduction of NPT caused
by downhole issues and waiting on weather
(WOW), which can range from 15 to 35%.
The technique of managed pressure drilling
(MPD) was developed to reduce downhole
issues and to drill the “undrillable.”
Huisman’s patented Heave Compensat-
ed Floor (HCF) solves this issue since the
drill pipe is 100% of the time heave com-
pensated. Said another way, the drill pipe
is not heaving up and down, even when
the vessel is heaving in heavy North Sea
conditions. Basically, a stationary, jack-
up-type operation is created on a heaving
floater.
Often, when the downhole pressure of
the mud in the well is lower than the pore
pressure, an uncontrolled hydrocarbon
influx is induced, i.e. a kick or potential
blow out. When the downhole pressure of
the mud in the well is higher than the frac-
ture pressure, the formation is fractured
Huisman’s Heave Compensated Floor (HCF) is expected to enable North Sea drilling
and mud is lost (mud flows uncontrolled
contractors to employ the managed pressure drilling technique on floaters.
into the formation). In formations with a
tight margin between the pore pressure
and fracture pressure, the MPD technique deployed on fixed drilling installations, jack ups and sometimes on floaters (in benign
can be applied. weather conditions).
MPD is a known drilling technique MPD cannot be deployed currently on floaters which experience significant heave.
where the downhole pressure of the mud When the drill pipe is hung off in the drill floor, 3.5 m heave (which is a typical North Sea
in the well is actively kept constant. This condition) can result in downhole pressure fluctuations up to 30 bar. Wells with tight
can be done in several ways, but most com- pressure margins in waters deeper than approximately 130 m (maximum water depth for
mon is actively adjusting the surface back jackups) and waves higher than 3.5 m cannot be drilled. Areas with these conditions do
pressure on the mud return line on the rig. exist and these cannot be economically exploited today.
When the mud pumps are started the flow The disruptive technology of the HCF (with the robotic drilling system) brings:
of mud through the well creates a higher • Enabling MPD on floaters in heavy weather
downhole pressure: the backpressure on • Enabling the running of (smart) completions on floaters in heavy weather
the rig is lowered to keep the downhole • Increasing safety during workover type operations
pressure constant. When the mud pumps • Reducing weather related down time.
are stopped, the downhole pressure drops. Employing the MPD technique on floaters is difficult as heave causes downhole pressure
The backpressure on the rig is increased to fluctuations. This applies to both surface back pressure and controlled mud loss-type
keep the downhole pressure constant. The MPD systems. Also, completion tubing control lines cannot be run in heavy seas as the
variation of the downhole pressure is kept heave motion of the tubing in the casing, when hung off, will cause damage to the control
within +/- 2.5 bar margin. MPD is regularly lines.

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 EQUIPMENT & ENGINEERING •

By introducing the HCF, a movable drill MARKET POTENTIAL

floor which can heave compensate the tu- MPD is required to drill certain wells because of potential well control issues, such as: HPHT
bulars when hung off in the slips, creates a wells, wells in marginal/depleted fields and ‘undrillable’ wells. Also one can argue that every
way of handling tubulars which is heave single well should be drilled with MPD, not only because of well control issues, but for ef-
compensated anytime, enabling MPD sys- ficiency improvements:
tem on floaters in heavy seas. Further the 1. Reduce the number of potential well control events.
HCF eliminates the problem of damaged 2. Increase the rate of penetration.
completion tubing control lines and the 3. Increase the oil/gas recovery rate by lowering the skin factor.
HCF can act as a HC tension frame for work A large number of these wells are located in water depths in excess of 130 m, which is
over operations. the maximum for jack ups, and therefore need to be drilled from floaters. The HCF basically
The HCF can work in two modes: creates a stationary, jackup-type environment on a heaving floating rig. When looking at
1. Conventional fixed to vessel mode; the the difference of downtime figures (NPT and WOW) between floaters and jackups, one
floor is lowered flush with the main deck. can easily see that the gains are massive.
Riser tensioners support the riser via a
telescopic joint.
2. Above mentioned HC mode; hydraulic
cylinders compensate the floor. The tele-
scopic joint is fully stroked out.
When the floor is flush with the deck
various objects can be easily skidded onto
the floor to the well center. The floor also
can be raised for launching large objects,
such as the BOP or subsea mud lift pump,
eliminating a substructure.
By integrating the accommodation in
the three (i.s.o. two)-layer deckbox, the ac-
commodation superstructure can be elim-
inated and a flush deck space of 1.7 times
the competition is created. The flush deck
and skidding systems avoid swinging crane
loads and avoid workers to work on the With the Heave Compensated Floor, drill pipe is heave compensated 100% of the time,
which in effect creates a stationary, jackup-type on a heaving floater.
deck.
BUSINESS BENEFIT
MARKET READINESS Creating a way of handling tubulars which is 100% heave compensated solves various
The HCF is based on existing technologies. technology gaps. This enables MPD system on floaters in heavy seas as heave is no longer
It is a smart rearrangement of existing causing downhole pressure fluctuation possibly causing kicks or lost circulation related
equipment. The Huisman Innovation Tower downtime. This applies to both surface back pressure and CML type MPD systems.
(HIT) in the Huisman yard, a full-scale drill- Currently completion tubing with control lines cannot be run in heavy seas as there is
ing test tower with automated robotic pipe a high potential of control lines damage when the tubing is heaving when hung off in the
handling, will serve as a test bench for the slips (e.g. when connecting to the tubing hanger). The HCF eliminates this problem as the
HCF and additional machinery. Underneath tubing will be heave compensated when hung off. Also, the HCF can act as a HC tension
the HIT a 400-m deep test well together frame for work over operations, with ample safe access and proper rig up/rig down
with an MPD mud system is present, which procedures.
can be perfectly used for various downhole The HCF reduces the NPT caused by WOW, saving 15-35% time/cost per well.
tests. The massive flush deck and skid systems provide ample space and safe handling of any
The flush deck arrangement and accom- combination of payload, improving overall rig efficiency.
modation located inside the deckbox of the
semi has been done before on various other SUMMARY
semi-subs and is therefore considered mar- Key advantages of the HCF technology include:
ket ready. Huisman is currently working • Significant improvements in terms of workability and efficiency. Wells can be drilled in
closely together with reputable naval design 30% fewer days, resulting in 30% less emissions.
houses to incorporate the design features • Improvement of safety and less cost for offshore personnel. Less people on board (less
mentioned into their proven drilling semi- cabins, less need for helicopter-transportation, catering, etc.). Simplified logistics.
sub designs. • Improvements are not only for MPD drilling operations but also for completion opera-
tions, and coring operations, etc. (not discussed in detail here). •

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 • EQUIPMENT & ENGINEERING

Ballast control and rig stability

simulator designed to provide eTraining
RIO DE JANEIRO-BASED ALQUER
has introduced the ALQUER BCRSS-3D
Ballast Control & Rig Stability Simula-
tor, designed to provide eTraining. The
simulator is a full computer-based sys-
tem that has been designed to provide
students with practical “hands on”
training for the measurable results
within the shortest time period, also
considering mobility.
The simulation scenarios  are de-
signed to faithfully reproduce the ap-
pearance and functions, on a PC screen,
that can be found on the control panels
of a semisubmersible rig. A digital
mooring control panel will allow stu-
dent operation of the anchor winch
motors. Dynamic, real-time coordina-
tion of all internal and external forces
effecting the rig, will give the correct
responses in all directions – heel, trim,
The ALQUER BCRSS-3D Ballast Control & Rig Stability Simulator has been designed to
roll, pitch, heave, surge, sway, yaw, ro- provide students with practical “hands on” training.
tation – along with a constant update
of the rig stability data analysis screen, Concurrent with any stability problems created by the factors mentioned above,
as draft, displacement, KM, GM, GZ, the instructor has control over the mechanical integrity of the system itself. Fail-
BM, FS, Center of Gravity, and Center ures at any point, single or multiple, immediate or sequential, will be realistic and
of Buoyancy. Internal forces considered demand the same process of detection and correction required for the on-board
include not only the ballast and con- BCOs (Ballast Control Operators) personnel. 
sumable systems, but also the deck load The objective of providing practical realistic training will be met. New personnel
and the mooring systems and changes orientation, illustration of stability principles, rehearsal of normal, abnormal and
in these systems that are both imme- critical operations and emergency preparedness will be greatly enhanced.
diate, i.e., in real-time and occur every Through instructor’s workstation, there is access to the entire system at all
second. This includes movements of times and status can be reviewed or set-up activities as desired. Using 80 plus color
the rig of location due to changing an- graphics digital screens, instructors and students will have field for observation
chor tensions that result from opera- of current system operating status. Instructors can save and replay exercise pa-
tion of the winches or environment rameters on the computer hard drives. This saves the instructor the time of re-
forces. Damage effects due to added introducing his training exercise data with each new student group. Any saved
weight or lost buoyancy can be exercise can be interrupted at any time to introduce different faults or failures.
observed. Training instructors can develop specific exercises that can be saved for future
In addition to internal factors, wind learning scenarios. This enables students to analyze and review specifics and
and wave current forces act upon the evaluate emergency procedures as needed.
rig simultaneously giving real-time re- By concentrating on the key areas of realism, the students training effectiveness,
sponses. The simulation can also con- instructor flexibility, based on a digital platform, the design for the Alquer Ballast
trol sea water density at any level for Control & Rig Stability Simulation with the 3D computer graphic screen allows
salt water, fresh water, or aerated due practical, economical and productive training results, even aboard MODU semis,
to subsea blowouts and in the near future remotely. •

64 WWW.OFFSHORE-MAG.COM | OFFSHORE NOVEMBER 2018

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 OUR ANSWER TO EFFICIENT DRILLING

NO MORE WAITING
ON WEATHER?
NO MORE
DOWNHOLE NPT?

The key challenge for floating rigs in the The HCF eliminates the praoblem of ¡ Less POB on board
North Sea is reduction of NPT caused by downhole pressure fluctuations and – Robotics: less men on the floor
downhole issues and Waiting on Weather, damaged completion tubing control lines – Skidding: less men on deck
which can range from 15 to 35%. and the HCF can act as a HC tension frame – Automud: less men on mud system
for work over operations. – Equipment inside: less maintenance
MPD on floaters is difficult as heave causes – Integrated services (e.g. CSG
downhole pressure fluctuations. Also ¡ Heave compensated floor running)
completion tubing control lines cannot be – Drill string heave compensated at all – Measure and remote (beach) control
run in heavy seas as the heave motion of times when in heave compensation
the tubing in the CSG, when hung off, will mode ¡ Less downhole related NPT and less
cause damage to the control lines. – No substructure required WOW
– When lowered flush with main deck – No surge and swab pressure by
What if you could create a jackup type, HCF
stationary drill floor? With the Heave ¡ Triple floor deck box – Cuttings and caving sensors
Compensated Floor (HCF), a movable drill – 170% deck area, no super – Automated mud system
floor which can heave compensate the structures
tubulars when hung off in the slips, you For more information, please contact
can! The HCF creates a way of handling ¡ Green Sales at sales@huisman-nl.com, or call
tubulars which is heave compensated – Zero emission heave compensation us at +31 88 070 22 22.
100% of the time. – Mooring and Dynamic Positioning
– Less days per well
– Battery peak shaving

www.huismanequipment.com

1811OFF_65 65 11/5/18 10:23 AM

 • EQUIPMENT & ENGINEERING

Electrical grounding a key design

consideration for subsea booster
pumps and umbilicals
An effective system helps safeguard personnel, protect assets

MIKE ZERKUS, RONNIE GARZA, THIERRY DEQUIN, GENESIS

THE ADVENT OF SUBSEA PROCESSING systems to enhance SUBSEA BOOSTER PUMP POWER SYSTEM
subsea well production and maximize total reservoir yield has ONE-LINE DIAGRAM
introduced subsea booster pump systems to deeper water (TRANSFORMER BASED SYSTEM)
environments.
Subsea booster pump systems typically require the installation Platform Power
of medium voltage Variable Frequency Drive (VFD) systems on (Local
Generation)
offshore platforms and use power umbilicals to transmit electrical
power from the drive to large motors located on the seafloor.
System design may call for two or more medium voltage three Circuit Breaker Circuit Breaker
phase circuits to be housed within a common power umbilical.
Alongside the power conductors are usually electrical quads, Variable Variable
Multi-winding
fiber-optic cables, and hydraulic and chemical metallic tubes. Frequency Frequency
Secondary
Distances between the VFD drive system on the platform and Drive (VFD) ~ ~ Drive (VFD)
the subsea pump motor may be 5 to 20 km (3 to 12 mi). Water ~ ~
depth for these installations range from shallow, or less than 1,000
Topsides Topsides
ft of water, to ultra-deepwater that is 8,000 to 10,000 ft deep.
Step Up Step Up
These subsea systems require material and component design Transformer Transformer
suitable for highly corrosive sea water environments and high (if Required) HRG (if Required) HRG
ambient pressures.
Maximum pressures are expected in motor penetrations and Umbilical Umbilical
terminations due to proximity to pump process fluid. Maximum Grounding Grounding
Disconnect Disconnect
pressures in the subsea pump system are also exerted in pump Switch Switch
and flowline and may be as high as 15,000 psi. Pump and motor TUTA
seals along with barrier fluid systems segregate the pressurized
process stream from the electrical termination points. Platform SubSea

Power (Power Triad Umbilical Length

REASONS FOR GROUNDING Umbilical Steel Tube Up to 40km
Grounding of electrical systems serve several important Control Quad
Fiber Optic)
functions. SUTA
Safety of Personnel. An effectively grounded system equalizes
potential (voltage) of all bonded equipment, thereby reducing
Subsea Subsea
shock hazards. In a subsea system, grounding should help equalize Step Down Step Down
voltage between connected equipment as well as between the Transformer HRG HRG Transformer
subsea umbilical components. (if required) (if required)
Power system neutral stability. An effectively grounded system Subsea Subsea
Motor M M Motor
maintains neutral stability of a power system and enables the
phase conductor voltage to be controlled within predictable Ratings: 500MW to 3000MW Ratings: 500MW to 3000MW
Motor Vt: 6.6kV Motor Vt: 6.6kV
limits, thus limiting potential power system over voltages. Ground- Frequency: 47Hz Frequency: 68Hz
ing of the neutral securely anchors the neutral to earth/ground
and thus helps to assure the suppression of transient line-to-

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 EQUIPMENT & ENGINEERING •

ground over voltages. This minimizes damage to motor and conductors are not specifically required in subsea power umbil-
power umbilical insulation and allows cable core design to a icals. The addition of a dedicated ground conductor to an um-
lower insulation level. Stable consistent voltage levels support bilical is undesirable because it may add unnecessary weight,
the proper operation of equipment. cost, and carries no current unless a problem occurs. An alternate
Fault current path. There are many different types of faults that approach is to omit the dedicated ground conductor and inten-
could occur in a three-phase power system. A single phase to tionally use the non-electrical metal components in the umbilical
ground fault is the most common type of fault anticipated to as the ground return path. This is referred to as the “structural
occur in a subsea power system. A current flow path must be ground path.” Extreme caution must be observed with the struc-
provided to enable detection of unwanted power system ground tural ground path approach. The metallic components and
faults. Such detection may then, initiate operation of circuit structural members of the umbilical design must carry the avail-
protection to clear the fault. able ground fault current without overheating or destroying
Power umbilical EMI mitigation. Subsea booster pump power portions of the umbilical. The lack of a dedicated ground con-
umbilicals generally have two or more power circuits, moving ductor requires careful analysis of the umbilical design. Alterna-
large currents at different frequencies. The very nature of a com- tively, power core shield can be used as neutral, also called con-
posite multifunction subsea power umbilical creates the possibility centric neutral.
of electromagnetic interference (EMI). Proper shielding and Analysis should include ground fault studies to determine
grounding can limit EMI effects between components within an available ground fault current from the topsides and subsea power
umbilical. system. Additionally, the umbilical design should be analyzed to
Insulation level. The level of insulation required for the power determine the overall cross-sectional area of the ground path
conductors is partially determined by the grounding scheme and and how much fault current the ground path can carry. Power
the expected fault duration. umbilicals are typically flooded and have the additional ground
path presented by the sea water in the umbilical. Consideration
DESIGN CONSIDERATIONS must be given to the portion of the umbilical that is above the
Systems design or materials specifications may be impacted by water line. This section will not have the advantage of the flooded
the grounding method to be employed. The key considerations section and may sustain damage if it cannot carry the available
are below. fault current without overheating.
Documentation. It is recommended to prepare a grounding EMI analysis. All of the electrical items are in close proximity
coordination plan (grounding plan) to document subsea pump within a composite power umbilical, which makes some EMI or
system ground requirements and decisions. Early during a project’s cross talk inevitable. The principal EMI issue with subsea boosting
appraisal or select stage, grounding philosophies are helpful to pump umbilicals is inductive coupling between pump power
communicate a vision for how a system under development may conductors and steel tubes and control quads within the umbilical.
operate. Datasheets or drawings may be used as the project Shields or screens around wire are very effective at reducing
matures, and shared with all equipment manufacturers and capacitively coupled noise but have little effect on induced EMI.
engineering teams on the project. This will affect topsides, hull Proper grounding can dissipate the induced voltages on the
and subsea engineering teams. non-current carrying metal components of the umbilical. The
Grounding disconnect switch. It is recommended to install a physical arrangement of the umbilical cross section and functional
grounding disconnect switch upstream of the topsides umbilical components lay angles have a large impact on EMI performance.
termination assembly (TUTA) for all electric circuits in the subsea EMI/Crosstalk analysis of the umbilical is recommended to
umbilical. Circuits in the umbilical are alongside each other in optimize the physical arrangement of components.
parallel for long distances. Energized circuits within the umbilical Cathodic protection. Stray currents within the umbilical can
will induce electromagnetic force (EMF) on other circuits over negatively affect cathodic protection system. Assessments should
the length of the umbilical. The induced EMF can manifest itself be performed to determine if induced voltages can affect the
as a lethal voltage on the topsides electrical terminations, even cathodic protection system and to determine if there will be any
on inactive circuits. A grounding disconnect switch will provide unexpected current flowing in the ground conductors.
maintenance personnel with a safe method to eliminate the Circuit protection. Circuit protection or protective relaying are
hazard and safely work on umbilical power or control circuits. directly affected by operating philosophy and ground system
Umbilical static discharge. Another safety issue with umbilicals selection. The earlier a decision can be made regarding operation
is static discharge. Due to the capacitive nature of long electrical and grounding systems, the earlier protective relaying scheme
cables, once power is removed a charge can remain on the elec- can be chosen. Affected systems, components, or activities
trical conductors for a long time. Also, all electrical components include:
within the umbilical are subject to long time electrical static • One-line drawing development
discharge, that can take a few hours generating a hazard to • Relay selection, relay configuration
personnel. • Current transformer size and placement
Umbilical engineering. Although required in topsides electrical • VFD configuration and protection settings
installations by applicable electrical codes, dedicated grounding • Subsea power umbilical circuit protection requirements

NOVEMBER 2018 OFFSHORE | WWW.OFFSHORE-MAG.COM 67

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 • EQUIPMENT & ENGINEERING

• Topsides and subsea transformers protection and specification CODES AND STANDARDS
(as required). Codes and standards required for proper grounding of offshore
Coordination review. Medium voltage, low voltage and UPS installations will differ depending on the location of the facility
supply systems should be reviewed to determine whether ground and authority having jurisdiction. Comparison of ANSI/ICEA/
fault protection is coordinated with these supplies. Relay coor- NEC North American electrical codes or IEC/CENELEC European
dination inconsistencies could exist which may cause unexpected codes considered for subsea system is provided as general illus-
VFD operation in the event of a ground fault. tration; however, code details need to be considered for design.
Insulation coordination. It is recommended that a document
or data sheet be produced to track insulation requirements for CONCLUSION
each power system component. All components have the potential It is recommended that pump drive systems be designed to
for being subjected to different voltage stress levels depending operate with fault, but in actual practice operate with the phi-
on the grounding system approach and operating philosophy losophy to immediately clear faults. This allows operators to
employed. Available insulation materials compatible with sea- inspect fault conditions and make an informed decision regarding
water and ratings may become the deciding factor for transmis- continued operation of the subsea booster pump with a fault in
sion voltage for a subsea system. place. It is important that project team representatives from
Dynamic electrical effects. There are several dynamic electrical operations, production controls, subsea pump controls, and
effects that can create large voltage and damage electrical insu- subsea power discuss and reach agreement on this as it will
lation. These include transient voltages caused by the Ferranti impact every disciplines design.
Effect, reflected waves, and cable resonance. An analysis should Understanding and properly addressing electrical grounding
be done to make sure the planned system (VFD, transformers (if considerations for subsea booster pumps system is essential for
used), umbilical, and motor) will cause or exacerbate these the design of an effective grounding system that will safeguard
effects. personnel, protect valuable installed assets while optimize pro-
curement and operation cost of the system. •

Subsea charging station designed to enable AUV operations

TELEDYNE ENERGY SYSTEMS has developed an underwater stack to be fed reactants in a “dead-end-
charging station, with the aim of enabling persistent AUV opera- ed” configuration maximizing energy
tions, without needing a crew nearby to retrieve or redeploy the delivery.
underwater vehicles, or a tether to supply power from above the The fuel cell system is reactant stor-
water. age agnostic. Reactants can be sup-
The first half of the system, the Teledyne Subsea Power Node, plied via compressed, cryogenic, or
acts as the energy supply, using electrodialysis reversal (EDR) hy- solid-state reactant storage systems.
drogen fuel cells to generate 8 kW of power per cell stack, with The Subsea Power Node is equipped
gaseous H₂ as fuel and O₂ as reactant, which are stored in adjacent with a compressed-gas reactant stor-
canisters. The current size of the systems can store 100 kWh, and age system. This storage system
to be released next year is a system that can store 600 kWh of ABOVE: The Teledyne Subsea is at a technology readiness level
Power Node acts as the energy
energy.  supply using electrodialysis (TRL) of 9 and is commercially
By 2021, the technology is expected to scale to 20 MW/hrs of reversal hydrogen fuel cells. refillable.
energy.  To communicate data on critical parameters such as charge The system was recently
BELOW: The Subsea Energy
and health, Teledyne Benthos acoustic modems are integrated Node is being designed to store demonstrated in naval training
into the Nodes, which transmit up to 15.36 kbps of information 600 kWh of energy.  exercises at ANTX 2018, in 14
over 9-27 kHz frequency bands to transducers 6 km away. Fuel and ft of water from a Rhode Island
O₂ are delivered via Teledyne ODI’s ‘Wet Mate’ connectors to the dock powering an ROV per-
second half of the system, which is the charging dock. forming ship hull inspections
Teledyne says that its proven proton exchange membrane (PEM) and with a commercial oil and
fuel cell technology provides long life (>10,000 hrs.). The stack gas customer in August 2018.
design is specifically tailored for operation with pure oxygen and Teledyne says that it expects to
includes design aspects generated through years of experience field a 1,000 m depth-rated ver-
with this technology. The fuel cell system features an integrated sion in 2019, and achieve 6,000
balance-of-plant with ejector driven reactant (EDR) technology m ( full ocean depth) in late
for reactant recirculation. The balance-of-plant allows the fuel cell 2021. •

68 WWW.OFFSHORE-MAG.COM | OFFSHORE NOVEMBER 2018

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 BUSINESS BRIEFS •

PEOPLE Engineering Safety Consul-

Tap Oil Ltd. has appointed Chris Newton as chairman. tants Ltd. has appointed Simon
Odin Estensen has joined Burwood as managing
Neptune Energy as managing director.
director of its Norwegian busi- Danos has hired Clay Daugh-
ness, based in Stavanger. Also, erty and John Moberly as scaf-
Daugherty Moberly
the company has appointed Ar- folding managers.
mand Lumens as CFO. UTEC has appointed Jon Be-
Energean Oil & Gas plc has atty to lead its Geomarine busi-
Estensen Lumens
hired Iman Hill as COO. ness unit and Greg Hammond
Saipem has appointed Stefa- no Cavacini to head its StarNet business unit.
as CFO. Leone Pattofatto, a non-executive and non-indepen- The 2018-2019 elected officers
dent member of the board and a member of Saipem’s Audit and for the American Association of
Risk Committee, has resigned. Drilling Engineers Lafayette Beatty Hammond
The National Safety Council has elected David Dickson, Chapter are: Kristy Bonner,
McDermott’s president and CEO, to its board of directors. president, Foster Marketing; Jude Boudreaux, first vice pres-
i3 Energy plc has appointed Majid Shafiq as CEO and John ident, Offshore Energy Services, Inc.; Bryan Leger, second vice
Woods as COO. president, Premium Oilfield Services; Jarrod Suire, secretary,
Duncan Brown has joined Louisiana CAT; and Sharon Moore, treasurer, Halliburton
Crondall Energy as subsea man- Energy Services, Inc. The 2018-2019 steering committee tasked
ager, London. with guiding the organization’s efforts includes: Al Wambsgans,
Russell Stevenson has steering committee chairman, DC International; Craig Castille,
joined the Oil & Gas Technology HWCG LLC; Rick Farmer, Double R Resources; Bruce Jordan,
Centre as industrial director. Stokes & Spiehler; Alden Sonnier, Francis Drilling Fluids;
Brown Stevenson
INPEX has appointed Tsuy- Jeffery Svendson, Advanced Logistics, LLC; and Rick Voth,
oshi Urano as senior coordinator, Human Resources Unit Blackhawk Specialty Tools.
General Administration Division; Keiji Miyake as general
manager, Rio de Janeiro Office America & Africa Project Division;
and Keiji Nagase as general manager, Exploration & Production
Unit America & Africa Project Division.
AGR has appointed André Sæthern to head its Reservoir
business in Norway.
Deep Casing Tools has appointed Andrew Wilson as global
sales and operations manager and Tessa Scott as European
sales manager.
DOF Subsea has hired Steinar Riise as chief commercial
officer.
Gordon MacLure and Donald McNaught have been ap-
pointed as joint administrators of The Underwater Centre in
Fort William.
Philip deGuzman has joined Pioneer Consulting as director
of submarine networks.
Altus Intervention has hired Cathrine Bjaarstad as presi-
dent for Norway and Denmark.
American Association of Drilling Engineers Lafayette Chapter
Elizabeth Paull has joined Sonardyne International Ltd. as
business development manager. COMPANY NEWS
MRDS has appointed Ian McGillivray as sales director. Jacobs Engineering Group Inc. has entered into a definitive
Brent Sappington has joined Consolidated Ship Repair as agreement to sell its Energy, Chemicals and Resources (ECR)
marine manager. segment to WorleyParsons Ltd. for $3.3 billion. The transaction
ValTek Industries Inc. has appointed Shane Hamilton as value consists of $2.6 billion in cash and $700 million in Wor-
chairman and Christopher Hibbert as president. leyParsons ordinary shares. The Jacobs board of directors and
TUV SUD NEL has appointed Anna Pieper as multiphase the WorleyParsons board of directors each have approved the
flow leader. transaction. It is expected to close in the first half of calendar
Cheryl Richard has been appointed to the Gulf Island 2019, subject to customary closing conditions and regulatory
Fabrication Inc. board of directors. approvals.

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 • BUSINESS BRIEFS

The Liberian Registry has established an Offshore and Gas Norco Group has opened an office in Abu Dhabi.
Technology Department at its US headquarters. Hoover Ferguson has signed a three-year contract plus
The Oil & Gas Technology Centre is forming two new options with Transocean Ltd. for the supply of cargo carrying
national R&D centers in northeast Scotland. The National units to the drilling contractor’s rig fleet in the North Sea.
Decommissioning Centre is a joint program with the Uni- Crondall Energy has opened an office in London.
versity of Aberdeen and industry to develop technology that Argus has opened an office in Sao Paulo, Brazil.
delivers cost-effective decommissioning, during ongoing pro- Gulf Island Fabrication Inc. has entered into an agreement
duction operations and at the end of field life, including ‘small for the sale of its North Yard facilities in Aransas Pass, Texas
piece’ decommissioning techniques. The National Subsea and certain associated equipment (excluding all crawler cranes)
Centre, in partnership with Robert Gordon University, will for $28 million. Final consummation of the sale is anticipated
use the latter’s research, testing and trials facilities to address to occur during 4Q 2018 and is subject to customary closing
subsea engineering challenges including automation and com- conditions, including an inspection period by the purchaser.
munications. Both new entities will also link other R&D insti- GAC UK has opened an office in Dundee.
tutions and innovation centers across the UK, the aim being to Wärtsilä has decided to reorganize into two business areas,
strengthen the UK and international supply chain. Wärtsilä Marine Business and Wärtsilä Energy Business,
OMV and Schlumberger have signed a memorandum of covering both new sales and services for the respective markets.
understanding to evaluate collaboration models for digital With this change, the company aims to deliver increased value
solutions. The MoU for a future strategic partnership will ac- to its customers by better serving their needs across the full
celerate the deployment of the OMV digital roadmap by lever- lifecycle. The new organizational structure will be operational
aging new digital technology available and currently developed as of Jan. 1, 2019. In addition, Wärtsilä has opened an Interna-
by Schlumberger. tional Maritime Cyber Centre of Excellence (IMCCE) in Singa-
Ørsted has entered into an agreement with the D.E. Shaw pore. The IMCCE consists of a maritime cyber emergency re-
Group to acquire a 100% equity interest in Rhode Island-based sponse team and a cyber academy.
Deepwater Wind at a purchase price of $510 million. After Great Hill Partners, a Boston-based private equity firm has
closing of the transaction, the name of the new organization acquired Ikon Science.
will be Ørsted US Offshore Wind. The transaction is subject Entrepose Group (VINCI Construction) subsidiary En-
to clearance by the US competition authorities and is expected trepose DBN has formed a partnership in Nigeria with Shore-
to close by the end of 2018. line Energy International. The joint venture will target
InterMoor has acquired all intellectual property of the BEL wide-ranging opportunities but with a focus on the oil and gas
Grapnel & Chaser company, including drawings, designs, and industry, including offshore and pipeline projects. Entrepose is
cast patterns for its complete range of anchor and chain handling an EPC contractor with in-country manufacturing and engi-
equipment (chasers and grapnels). neering capability, and fabrication yards throughout Nigeria.
The Carlyle Group has acquired EnerMech from Lime Shoreline is said to be a leading investor and operator in the oil
Rock Partners. and gas upstream industry across West Africa, with proven
Oteac Ltd. has succeeded in the renewal of its ISO 9001:2015 reserves of 1.2 Bbbl of oil and 2 tcf of gas.
certification. ASCO and Peel Ports have joined forces in a long-term
SUEZ has opened an R&D analytical testing lab in Tomball, strategic partnership aimed at supporting the energy market
Texas. in Great Yarmouth and promoting future sustainability for the
Baker Hughes, a GE company (BHGE) is collaborating port. By working in collaboration, the two organizations will
with the University of Strathclyde’s Advanced Forming offer increased flexibility to meet the demands of the oil and
Research Centre (AFRC). They are examining how advanced gas, renewable energy, and decommissioning markets operating
manufacturing tools and processes could reduce costs and out of Great Yarmouth. The 12-year partnership will officially
increase productivity of BHGE’s operations. BHGE will work begin in January 2019 and will see ASCO assume operational
with AFRC engineers and researchers to improve its manufac- responsibility for two additional berths at Peel Ports Great
turing processes and delivery of services, with the two parties Yarmouth.
looking at opportunities to cut cycle time while extending the C-Innovation LLC, has opened a new dock facility in Port
lifespan of oilfield equipment for operations in increasingly Fourchon, Louisiana, to expand the capabilities of its Subsea
high-pressure/high-temperature environments. Services group. The dock facility, which will be manned 24
AFGlobal has launched an API certified fastener business. hours a day, will serve as the base for the company’s Fourchon
The new offering will feature engineered bolting for offshore operations and features client offices, conference rooms with
and onshore oil and gas applications. full streaming connectivity, bunk houses, and parking for offshore
Penspen has signed an agreement of intent with the Uni- crews.
versidad Juárez Autónoma de Tabasco to launch a master’s PDC Logic LLC has changed its name to Taurex Drill Bits
degree in Integrity Management and Corrosion. LLC.

70 WWW.OFFSHORE-MAG.COM | OFFSHORE NOVEMBER 2018

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 ADVERTISERS’ INDEX •

The index of page numbers is provided as a service.

The publisher does not assume any liability for error or omission.

Baker Hughes www.bhge.com/AutoTrakTruth C2

Enventure Global Technology www.EnventureGT.com/ESET 10

SALES OFFICES Genegis GI www.vamp.genegis.net 3

Huisman Equipment www.huismanequipment.com 65

PENNWELL PETROLEUM GROUP
1455 West Loop South, Igus GmbH www.igus.eu 5
Suite 400, Houston, TX 77027
PHONE +1 713 621 9720 • FAX +1 713 963 Ion Geophysical Corp www.iongeo.com/Marlin 7
6228
David Davis (Worldwide Sales Manager) Opito www.opito.com 11
davidd@pennwell.com
Offshore Group www.offshore-mag.com C3
United States • North America PNEC Conferences www.pnecconferences.com 33
• Central America
• South America PennWell Petroleum Books www.pennwellbooks.com 37
David Davis davidd@pennwell.com
PHONE +1 713 963 6206 Subsea Tieback Forum & Exhibition 2019 www.SubseaTiebackForum.com 17

UNITED KINGDOM • SCANDINAVIA Repsol www.repsol.com 23

•THE NETHERLANDS
• MIDDLE EAST RM Young Company www.youngusa.com 19
10 Springfield Close, Cross,
Axbridge, Somerset, TechnipFMC www.TechnipFMC.com/WelcomeChange C4
United Kingdom BS26 2FE
PHONE +44 1934 733871 TUBACEX www.tubacex.com 25
Graham Hoyle grahamh@pennwell.com
VALLOUREC www.vallourec.com 27
FRANCE • BELGIUM • PORTUGAL
Wood www.woodplc.com 13
• SPAIN • SOUTH SWITZERLAND
• MONACO • NORTH AFRICA
961 Camp Redon, 83830 Callas, France
PHONE +33 (0) 6 2123 6702 •
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stefaniat@pennwell.com
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GERMANY • NORTH SWITZERLAND
• AUSTRIA • EASTERN EUROPE
• RUSSIA • FORMER SOVIET UNION
OIL & GAS INDUSTRY
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Sicking Industrial Marketing
Kurt-Schumacher-Str. 16, An in-depth look at human
59872 Freienohl, Germany resource management for
PHONE +49 (0) 2903 3385 70 • all aspects of the oil and gas
FAX +49 (0) 2903 3385 82 sector. Managing Human
Andreas Sicking wilhelms@pennwell.com
Resources in the Oil & Gas
ITALY • TURKEY • GREECE Industry will help:
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• AUSTRALASIA • JAPAN
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Republic of Singapore 247909
PHONE +65 9616 8080 • ï Show how effective
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resources can improve
FOR ASSISTANCE WITH project success
MARKETING STRATEGY OR AD
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PennWell Marketing Solutions Order Your Copy Today!
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www.pennwellbooks.com 800-752-9764

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 • BEYOND THE HORIZON

Simple, disciplined approach improves

the business development process
CONSISTENTLY PROFITABLE and industry-leading compa- Process improvement is central to improving the work pro-
nies have one powerful common trait: best-in-class business cesses to become more efficient and effective. It is an aspect of
development organizations and systems, and most important, organizational development in which a series of actions are
company-wide business development cultures that demand taken by a leader to identify, analyze, and improve existing
every employee contribute in some way toward securing new business processes within an organization to meet new goals
business. Business development is an essential ingredient for and objectives, such as increasing profits and performance,
any thriving, successful company. Fundamental business de- reducing costs and accelerating schedules.
velopment principles are outlined below. A key element of the business development process is the
The business developer today is concerned with positioning Proposals & Estimating (P&E) function, since it touches all
and capturing potential growth opportunities, i.e. prospect aspects of a business and directly affects a company’s ability to
identification, selection, definition, development, and execution. win work. It is the one area where companies should absolutely
Both in the development phase and the implementation phase, focus their efforts for process improvement.
the business developer collaborates and integrates the knowl- Business development is not a linear process, but a cycle of
edge and feedback from the organization’s specialist functions, targeting, positioning, managing customer accounts, and de-
for example, R&D, operations, marketing, and sales to assure veloping proposals to win work. The business development
that the organization can implement the growth opportunity process should be a simple and disciplined approach to acquiring
successfully. new business. Essentially, there are five important characteristics
Many companies today require a new and enhanced focus associated with this process.
- by everyone in the company - to help create and sustain prof- 1. It is a process for improving sales through systematic devel-
itable growth in the years ahead. To be successful, companies opment of customer relationships.
should train employees worldwide and progressively add a 2. It is a collection of simple tools that work together to improve
business development element to their culture, where employees the selling effort.
recognize the importance of and actively participate and engage 3. It is a process for positioning to win critical project
in business development processes focused on creating cus- opportunities.
tomer value and developing solutions. 4. It is a process for identifying and communicating competitive
Such enhanced focus will help a company to: advantages.
• Improve the project selection process and capture efforts so 5. It is a process for improving teamwork in multi-functional
when they do a job they give their clients the best resources sales efforts.
and the customer receives the best job possible. The Business Development and P&E groups should work
• It will make people more professional in dealing with cus- together to implement a more structured and disciplined de-
tomers and will allow consistency of process in business cision-making process, including formalizing a “Stage-Gate”
development. process. This would establish consistent reporting lines, roles,
• It will allow more disciplined, smarter decision-making. responsibilities, accountability, and performance measures. It
• It will lead to a better understanding of customers and would also empower functional groups with quality control
markets. accountability and commitment to the bid inputs; providing
• It will enable employees to understand the importance of input and support as required.
their role and the skills they need to help the company be A stage-gated approach to business development and deci-
successful in winning work. sion-making creates a visible and measurable function and
The acquisition of new business is vital to the survival of any helps ensure support from the entire organization to produce
business. In an effort to increase a company’s success rate in winning proposals.
acquiring new business, they must assess and, in most cases,
improve, the business development process itself. This involves CHRISTOPHER M. BARTON
a systematic approach to help an organization optimize its SR VICE PRESIDENT, BUSINESS DEVELOPMENT – OFFSHORE
WOOD
underlying processes to achieve more efficient results.

This page reflects viewpoints on the political, economic, cultural, technological, and environmental issues that shape the future of the petroleum industry.
Offshore Magazine invites you to share your thoughts. Email your Beyond the Horizon manuscript to David Paganie at davidp@pennwell.com.

72 WWW.OFFSHORE-MAG.COM | OFFSHORE NOVEMBER 2018

1811OFF_72 72 11/5/18 10:23 AM

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