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Welcome to the August edition of Oil&GasCONNECT, a quarterly publication available online at www.oilandgasconnect.co.uk and in print format. We hope all of our readers are continuing to find this publication a useful industry communication tool to bridge the gap between buyers and suppliers in the oil and gas industry. In this edition, Penny Hitchin, our regular feature writer for Oil&GasCONNECT, puts the spotlight on the North East of England on pages 4-5, finding out how the former shipbuilding yards on the rivers and coast of the region play a key role in the North Sea offshore industry, with more than two thirds of the oil and gas platforms operating in the North Sea built in the region. Following this, Penny gets an in-depth look at a typical day in the life of a sat diver on pages 34-35, hearing about the pros and cons of working in such confined conditions from sat diver Tim Mudge. Experience of offshore oil and gas production since 1971 has made Norway a major player in the oil and gas industry; Penny investigates the significance of links between the UK and Norwegian operators on pages 38-40. And finally, on pages 44-45, Penny discusses the unlikely location of southern England for drilling valuable conventional gas and oil onshore which have caused little controversy over the decades. We also have, as we like to include in every edition, regular articles covering Law, Recruitment, Finance, Education, and Q&A’s, which in this edition are answered by David Edwards, Chief Executive at ECITB, to keep you abreast of issues within the industry. On top of this, we get Andy Brown’s view on the benefits of adopting online reference tools in the oil and gas, engineering design, industrial equipment and process industries, on page 53. John Sloninsky from Ecosys got in touch with Oil&GasCONNECT and discusses how better performance tracking and delivery optimisation has never been so crucial, on pages 60-61. Do make use of our convenient and up to date directory covering a range of companies and breadth of products and services available to the oil and gas industry, starting from page 71. If your company isn’t currently listed, please refer to our subscription form on pages 119-120 or alternatively contact our sales team on 01937 580400. Keep an eye out for Oil&GasCONNECT at Offshore Europe in September. There will be complimentary copies available on the media stand and we will be there to meet you all and see what you have going on at your stands. Get in touch to arrange a meet up by calling 01937 580 405; we look forward to seeing you there! Oil&GasCONNECT is about your industry so we welcome your editorial contributions. Please don’t hesitate to get in touch should you have any comments or suggestions as we are always interested to hear your views. We hope our readers enjoy this edition of Oil&GasCONNECT and look forward to hearing any feedback you may have.
written consent. © April 2010. The publisher can not accept responsibility for the accuracy of the content, or for any errors, omissions or mis-statements, nor can the publisher accept responsibility for the copy supplied by the advertisers.
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The publisher shall not be liable for any direct or indirect or consequential loss or damage suffered by any person as a result of relying on any statement in or omission from these articles. Opinions expressed in these articles are not the opinions of the publishers.
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CONTENTS
Industry News
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Industry News
Industry News
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New definition of fuel poverty set out to ensure support is targeted at those who need it most Core event attracts high interest for North East offshore sector
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BP launches Gulf claims fraud hotline Egdon gets UK spud go-ahead Chevron adds third Group II base oil hub in Europe GE oil & gas expands subsea manufacturing capacity in the UK Engineering company brings more jobs to Teesside Bridge Energy signs rig contract for Aragon Prospect in UKCS
ABB wins ÂŁ18million offshore automation contract Europa oil & gas award of frontier exploration licences and commencement of 3D seismic in South Porcupine Basin, offshore Ireland
EMAS AMC awarded ÂŁ86.6million floater installation contract from Statoil
Diary of Events
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Essential events to attend in the following months
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Features
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North East England takes key role in fabricating offshore structures Life under pressure: a day in the life of a sat diver Norway’s innovation spreads Experience of offshore oil and gas production since 1971 has made Norway a major player in the oil and gas industry; Penny investigates the significance of links between the UK and Norwegian operators
The hidden oilfields of South England Imagining the future of the global oil and gas industry New professional development tools for the internet generation of engineers Using project cost controls to alleviate risk
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Q&A
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Directory David Edwards, Chief Executive, Engineering Construction Industry Training Board (ECITB)
Category Listings Search for companies you need by their category of services.
107 Alphabetical Supplier Listings
Law
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Search for companies you need by their name.
Guaranteeing tax relief for decommissioning: What will it mean? Decommissioning Relief Deeds will provide contractual certainty for UKCS oil and gas operators on the UK tax relief to which they will be entitled in respect of future decommissioning activities.
Website For all the latest vacancies Visit the Oil&GasCONNECT Website now at
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Finance
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HMRC continue to investigate EBT schemes EBTs are generally operated by a trust, giving the client a non repayable loan or a loan on favourable terms, which scheme providers have marketed as a legitimate tax planning arrangement.
Recruitment
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The network of support into the oil & gas industry With thousands of British military personnel facing redundancy there are opportunities to transfer skills and build a new career in a rewarding industry.
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AREA FOCUS: NORTH EAST ENGLAND
NORTH EAST ENGLAND TAKES KEY ROLE IN FABRICATING OFFSHORE STRUCTURES
Words: Penny Hitchin
Images: (Back) © Ronald Hudson Fotolia.com (Front) JDR Cables
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fter London, the North East is the second smallest region in England, but what it lacks in size it makes up in character, possessing probably the strongest regional identity in the UK, south of the Scottish border. Most of the population live in urban centres clustered around the mouths of three large rivers; the Tyne, the Wear and the Tees. A distance of less than 50 miles along the coast of the North Sea separates the three rivers, but within that area, strong local allegiances lead to distinct tribal affiliations. Outsiders tend to lump together all north-easterners as Geordies, but this term should only apply to people born and brought up in Newcastle-upon Tyne. A Geordie from South Shields on the southern bank of the Tyne is known as a Sanddancer, while people hailing from Sunderland on the River Wear are Makems and Teeside residents are proud to call themselves Smoggies (derived from Smog Monsters). A cluster of heavy industries including coal mining, iron and steel, shipbuilding and large scale engineering, made England’s north east area an industrial power house for two centuries. At one time, a quarter of the world’s ships were built on Tyneside.
The region is now a centre for maritime engineering, metals and manufacturing. Former shipbuilding yards on the rivers and coast of the region play a key role in the North Sea offshore industry with more than two thirds of the oil and gas platforms operating in the North Sea built in the region. The region is now a centre for maritime engineering, metals and manufacturing. Former shipbuilding yards on the rivers and coast of the region play a key role in the North Sea offshore industry with more than two thirds of the oil and gas platforms operating in the North Sea built in the region.
State of the art facilities in Teeside Billingham based TAG Energy supplies tubulars for marine structures used in both oil and gas and offshore wind. Tag operates from a site that was one of the biggest shipyards in Europe with a rich industrial history of fabrication of large structures. TAG’s £23million state-of-theart facility uses lean manufacturing principles honed by automotive
manufacturers. The bespoke automated lay-out means that flat plate goes in at one end of the building and ‘cans’ or tubulars come out of the other. The dimensions of the cans can be up to 7.3 metre diameter in a single plate; up to 120ml thick and from 60 to 100 metres length. The facilities have the capacity to deliver up to 100,000te of steel jacket and monopiles yearly and include blast and paint areas. The plant was built in just less than 12 months and opened for business in September 2011. The first significant contract came in January 2012 when TAG Energy Solutions won an order from Saipem for four foundation piles to support a jacket construction in Total’s Elgin B field. These were transported by barge to Stavanger from Teeside last summer.
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AREA FOCUS: NORTH EAST ENGLAND
Newcastle: The first central North Sea platform to be built at a single construction yard in the UK for at least 25 years was recently completed at the Hadrian Yard in Wallsend.
Poolies supply offshore structures and components. The deepwater port of Hartlepool (locals are known as Poolies), is another important former shipbuilding centre. Fabrication of large structures for offshore markets is a speciality, with quayside production facilities able to load out via the deepwater port, giving direct access to the North Sea. Tata Steel’s Tubes business (split between Hartlepool and Scunthorpe) produces steel tubular products, structural hollow sections and large diameter pipe used offshore, while the adjacent Offshore Processing Centre provides welded and profiled tubular assemblies. Heerema Hartlepool Fabrication Group (HFG), a subsidiary of Dutch company Heerema, builds subsea installations, fixed platforms and floating production facilities. Heerema has two purpose built construction facilities in Victoria Harbour with the capacity and capability to construct jackets of up to 8,000 tonnes and decks of up to 10,000 tonnes. In December 2012, HFC started work on fabrication for GDF Suez’s £1.4billion (GBP) Cygnus gas field project. The yard will carryout 10,500 tonnes of fabrication work made up of the 3,900 tonne Process & Utilities (PU) module, two bridges, a flare tower, a 1,600 tonne Wellhead module and a 1,500 tonne Compression module. JDR Cables is a £100million turnover business making umbilicals, cables, accessories and support services for oil, gas and renewable energy from its £30million Hartlepool facility, the first UK purpose designed deep water quayside facility for manufacturing subsea power cable and umbilical production.
South Shields Sunderland
Teesside: Billingham based TAG Energy supplies tubulars for marine structures used in both oil and gas and offshore wind. Tag operates from a site that was one of the biggest shipyards in Europe. The deepwater port of Hartlepool (locals are known as Poolies), is another important former shipbuilding centre with its direct access to the North Sea.
Map Caption: Key locations for the offshore industry.
Earlier this year government announced that Newcastle will be home to the new Neptune National Centre for Subsea and Offshore Engineering. The centre is being developed on the north bank of the River Tyne at Neptune Energy Park.
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Evolution from ships to platforms The first central North Sea platform to be built at a single construction yard in the UK for at least 25 years was recently completed at the Hadrian Yard in Wallsend. In June 2013, the final part of the £250million platform and link bridge was towed down the Tyne by the Thialf crane barge heading for the Forties Field. Offshore Group Newcastle Ltd (OGN) won the contract for the design and build of the platform in 2010 as part of Apache Corporation’s £400million construction project at Forties Alpha Satellite Platform. OGN was established four years ago at the 75 acre shipyard in Wallsend. The current capacity of the yard is up to 50,000 tonnes of steel or 30 offshore wind foundations per year. The yard is currently building a £50million jacket for Talisman Sinopec for the North Sea. Further investment to increase the capacity of the yard is planned. The quays and yards around the Tyne are home to many other companies with specialist niches in the offshore industry. Wellstream, now part of GE, has been supplying flexible pipes to the worldwide offshore gas sector from its Newcastle
manufacturing facility since 1997. It specialises in the engineering and manufacture of flexible risers and flowline products for subsea production and transport. The adjacent quayside provides deepwater access for quayside cranes to load directly onto installation vessels or heavy lift vessels.
North east to become world leading subsea technology centre? Earlier this year government announced that Newcastle will be home to the new Neptune National Centre for Subsea and Offshore Engineering. The centre is being developed on the north bank of the River Tyne at Neptune Energy Park. Planned facilities include a hyperbaric chamber capable of testing technology and materials at temperatures and pressures equivalent to those found in deep oceans. Industry and academics will collaborate to develop new materials and technologies to harness the ocean’s potential as a source of food, energy and medicine. North East England’s niche in the offshore world looks set to expand.
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INDUSTRY NEWS
SUSTAINABLE PACKAGING FOR NORM WASTE. PacTec’s Certiied IP-1 and IP-2 Flexible Containers
British Patent #GB 2453305
SUSTAINABLE INNOVATION
FIT FOR PURPOSE
ROBUST
Improved environmental and cost savings option to steel containers
PacTec EPS works closely and interactively with clients to develop Fit For Purpose solutions
Utilised in the U.S. oil and gas sector for the safe cleaning and decommissioning of storage tanks and transportation of drilling wastes to nal disposal
Winner of the 2012 Business Innovation Award
www.pacteceps.co.uk 01946 695005
NEW DEFINITION OF FUEL POVERTY SET OUT TO ENSURE SUPPORT IS TARGETED AT THOSE WHO NEED IT MOST Following an independent review and a consultation a new definition of fuel poverty has been set out to ensure support is targeted at those who need it most. A household will be defined as ‘fuel poor’ if it’s: total income is below the poverty line (taking into account energy costs); and Energy costs are higher than typical. The decision to adopt a new definition follows positive responses to a consultation launched in September last year and an independent review of the current definition by Professor John Hills of the London School of Economics (LSE), published in March 2012. The current definition of a ‘fuel poor household’ is that a household would need to spend 10% of their income on energy a year. Ministers have accepted independent expert advice that the current fuel poverty definition distorts our understanding of the problem as, at times, it can capture some
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rich households while overlooking others that are struggling with their energy costs. Government has introduced amendments to the Energy Bill to set a new target for fuel poverty. It is proposed that this will focus on ensuring that fuel poor households attain a certain standard of energy efficiency in their home by defining an average or a minimum standard for energy efficiency for fuel poor households. Edward Davey, Secretary of State for Energy and Climate Change, said: “I am determined to tackle the scourge of fuel poverty and help hard-pressed consumers across the country. “In the past, action to tackle fuel poverty has been held back by how the problem has been defined. This made it difficult to deliver help to the people who need it most. “The new definition, together with the amendment that we are making to the Energy Bill, will ensure a focus on the households that are at the heart of the fuel poverty problem. That’s those with both low incomes and high energy costs.
“Our new strategic framework sets out how we can use this new definition to target our resources in the most effective way.” Greg Barker, Minister for Energy and Climate Change, added: “We are doing all we can to help hardworking families and vulnerable people with the rising cost of living. That’s why the Chancellor announced the extension of the Warm Home Discount scheme to 2015/16, taking £320million off the nation’s energy bills. “Despite the recent modest fall in the numbers of households in fuel poverty, there is still an unacceptably high number of people living in cold, damp, unhealthy conditions. That’s why we must take a new approach to fuel poverty, with energy efficiency at the heart. “I am determined that we use new schemes like the Energy Company Obligation to target those who need support the most, and that’s what our new approach to fuel poverty will help to achieve.”
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ADVERTORIAL
OIL STATES MCS LTD
GROWING STRONG IN CONSTRUCTION, MAINTENANCE AND DECOMMISSIONING SERVICES
It started with connections Operating out of Barrow-in Furness, UK, Oil States MCS Ltd. has been involved in the offshore construction industry since 1979. The company was acquired by Oil States Industries Inc. of Arlington, Texas, USA in 1996. Early on, the company was focused entirely on Hydra-Lok® pile swage connections for small subsea structures. Hydra-Lok offers an alternative to traditional grouted connections between offshore jackets and driven foundation piles. The system works via hydraulic expansion of the foundation piles into a sleeve fabricated on the offshore structure (e.g., a pre-drilling template, deep water jacket, ice resistant structure or subsea manifold). Hydra-Lok® technology has been used on hundreds of installations worldwide, from the North Sea to South East Asia, the Gulf of Mexico, West Africa, Canada and Russia. Today the Hydra-Lok® product line includes Hydra-Lok® pile-to-structure connections for subsea structures and jackets secured by means of large diameter piles, and the Hydra-Lok LiteTM system for connection of lightweight subsea protection structures. Combined with Latch-Lok jacking systems, these solutions offer a complete package for levelling and securing offshore structures.
Expanding to meet demand Over time, the company expanded into maintenance, repair and decommissioning, including the operation of abrasive water jet
cutting systems for platform removal and offshore/onshore repair and maintenance. The Hydra-Lok® swaging system has also been adapted for the repair of corroded and damaged caissons on offshore installations and for downhole pressure testing and casing repairs. Today, Oil States MCS designs, builds, assembles and supplies all of the necessary tools and equipment and personnel to carry out these services. “We can offer oil companies and installation contractors a complete solution for offshore structures; from installation to decommissioning,” says Tony Sneesby, project manager at Oil States MCS. “We have a team of highly qualified engineers and technicians who have a wealth of experience and knowledge of our equipment and the offshore industry. We design, operate and maintain all of our equipment and are known for our problem solving and bespoke tooling solutions to support client requirements.”
located in 300m water depth, had its piles severed at a depth of three-metres below the seabed using Oil States MCS’ abrasive water jet cutting technology. The pile severance was completed in May ahead of the arrival on site of a heavy lift crane vessel in August. The crane successfully lifted the 1800 tonne structure from the seabed at the first attempt. “Oil States MCS has a full order book for next year, and with continued good project performances we are looking to sustain this growth long-term,” he adds.
Into deep water
Growth ahead
To complement its portfolio of internal pile cutting tools, Oil States MCS has introduced a range of ROV-deployed external cutting tools for severing tubulars from 12 to 60 inches in diameter. These multi-functional tools can perform tapered and castellated cuts and are purpose-built for deep water decommissioning projects where large structures must be removed in smaller more manageable sections. “We are continually improving our core tooling and systems to ensure that we provide the most efficient and costeffective solutions to our clients,” notes Tony Sneesby. “We are constantly reviewing market requirements to identify viable longterm products that we can either purchase or develop for utilisation in the oil and gas and renewable markets.”
Oil States MCS has had one of its most productive years to date in 2013 and is striving to expand its facility to meet growing market needs. “We are presently looking at steady growth and expansion in many aspects of our business including our facility, personnel and markets – both new and old. We are currently on a recruitment drive for mechanical design engineers to help handle the increased workload we have at present. We have a new General Manager in Nick Jones, who took over from Owen Osmotherley following his retirement in February. We have also focused on expanding our services to new geographical regions such as the Gulf of Mexico, Far East, South America, Gulf of Iraq, Russia, and the Caspian Sea,” concludes Tony. Oil States MCS has continued to adapt to the ever-changing environment of the global offshore oil and gas industry and now provides many sectors with highly efficient, cost-effective and safe services. For additional information, visit: www.oilstates.com. Or email David.Howell@oilstates.com, Sales Manager.
Success breeds success As Tony Sneesby explains, two of the company’s recent decommissioning projects include the removal of the TOGI subsea template and Q8B jacket. These structures were previously installed by Oil States MCS using the Hydra-Lok® technology in 1994 and 1989, respectively. The TOGI template,
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INDUSTRY NEWS
CORE EVENT ATTRACTS HIGH INTEREST FOR NORTH EAST OFFSHORE SECTOR The North East LEP and NewcastleGateshead Initiative jointly organised a North Eastern CORE Showcase event which brought together the Ports of Blyth, Sunderland and Tyne, Narec, the National Renewable Energy Centre, and world-leading offshore energy related companies based in the North East, to promote the breadth of expertise in this sector to investors and business leaders. The North East LEP area has been identified by central government as one of only six UK CORE (Centres for Offshore Renewable Engineering) areas. CORE areas offer the best infrastructure for offshore manufacturing, access to a skilled workforce, supply chain and committed local leadership. Senior representatives of private and public sector organisations attended the event, which included tours of key development sites, including the LEP’s North East Enterprise Zone, in the North Eastern CORE.
The first day included presentations hosted by Narec, followed by a tour and a boat trip to view the NOAH Platform, an offshore research platform, three nautical miles off the coast of Blyth. They also viewed the UK’s largest wind turbine before heading back to the Port of Blyth to visit its riverside facilities. During the second day the group travelled to Newcastle College’s Energy Academy for presentations delivered by the college and Newcastle University’s School of Marine Science and Technology, followed by visits to both Sunderland Port and Port of Tyne, ending with a river cruise up the Tyne to view the waterfront development sites, hosted by Andrew Hodgson, vice chairman of the North East LEP and managing director of SMD. Andrew Hodgson believes the North East is perfectly located for growth in the offshore and subsea sectors. He said: “The North Eastern CORE area has valuable assets which set it apart from the competition. We have generous amounts of available land –
for example, 250 hectares at the Port of Tyne and 115 hectares at the Port of Sunderland. “We have £30million growth capital specifically for investment in the LEP area – probably the largest amount of its type in the UK - and we have world-leading offshore renewable and subsea companies and R&D centres such as the recently launched Neptune centre operating from the region. With active support from the North East LEP and government, a skilled local workforce and a strong supply chain, the North Eastern CORE area has a powerful package to attract international investment.” Jen Hartley, senior inward investment manager at NewcastleGateshead Initiative said: “The success of this event illustrates the collaboration of the organisations involved to put together an exciting, informative tour for potential investors, in a bid to attract more overseas investment to the region. We’re delighted that so many business and public sector guests attended and enthusiastically took part in all aspects of the busy two day event.”
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Continental Contracting Limited (CCL) is a major sub-contractor of manpower throughout Europe, as well as a British, Dutch, German, and Belgian registered Employment Company. We specialise in the provision of technical personnel to the engineering, shipbuilding, petrochemical and offshore industries, and currently have active employees in the United Kingdom, the Netherlands, Norway, Belgium, northern Italy and Germany. The steady development of CCL has been made possible by the growing need for skilled tradesmen and technicians throughout Europe together with our highly skilled management teams. Con
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Stockists and distributers for: Forged Steel Gate, Globe & Check Valves ½" to 2" 800lb / 1500lb / 2500lb – NPT, SW & BW 150lb / 300lb / 600lb / 1500lb / 2500lb – Flanged
One of the widest materials ranges stocked in Europe, including: Carbon Steel & Low Temperature ASTM A105N ASTM A350 LF2 Chrome Alloy ASTM A182 F5 ASTM A182 F9 ASTM A182 F11 ASTM A182 F22 Stainless Steels ASTM A182 F304 / F304L / F304H ASTM A182 F316 / F316L ASTM A182 F321 / F321H ASTM A182 F347 / F347H Exotics ASTM A182 F51 – Duplex ASTM A182 F53 – Super Duplex ASTM A182 F55 – Super Duplex Monel Alloy 625
All Valves are fully EN 10204 3.1 certified Power Valves International Ltd., Centrus Business Park, Mead Lane, Hertford. SG13 7GX. England Tel: 01992 538022 Fax: 01992 538033 Email: power.valves@btconnect.com
2013
POWERING THE FUTURE ENGLAND’S LEADING ALL-ENERGY CONFERENCE & EXHIBITION John Innes Conference Centre Norwich Research Park, Norwich, UK
Wednesday 18th September The opportunities are here Join us at EEEGR2013 & find out how you can benefit
nuclear - oil & gas - energy supply chain - new opportunities networking - renewables - inward investment -nuclear - oil & gas - energy supply chain - new opportunities - networking renewables - inward investment - nuclear - oil & gas - energy supply chain - new opportunities - networking - renewa bles - inward investment - nuclear - oil & gas - energy supply chain - offshore wind - networking - renewables inward investment - nuclear - oil & gas - energy supply chain new opportunities - networking - renewables - inward investment - nuclear - oil & gas - energy supply chain biomass - networking - renewables - inward investment -nuclear - oil & gas - energy supply chain - new opportunities networking - renewables - inward investment -nuclear - oil energy supply chain - new opportunities - net working - renewables - inward investment -nuclear - oil & gas energy supply chain - new opportunities - networking - renewa bles - inward investment -nuclear - oil & gas - energy supply chain - new opportunities - networking - renewables - inward
Exhibition space and delegate bookings: Book online www.eeegr.com Tel: 01493 446535
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INDUSTRY NEWS
ABB HOSTS SERIES OF ON-STAND TECHNICAL TALKS AT OFFSHORE EUROPE ABB is hosting a series of short talks covering safety, reliability and efficiency issues affecting the oil and gas sector, on stand 3D 160, at this year’s Offshore Europe show. Daily technical talks will target operations, technical engineers and management within oil and gas operating companies and EPCs. The talks will be delivered by ABB experts working within the oil and gas industry, including developers, engineers and project managers. The experts will be available to answer
questions, listen to suggestions and debate insights. Visitors can also witness how today’s control room helps oil and gas companies achieve benefits through operator effectiveness, enterprise asset optimization and collaborative production management. Tel: 01480 475 321 Email: oilandgas@gb.abb.com; Web: www.abb.co.uk/offshore-europe
ABB WINS £18 MILLION OFFSHORE AUTOMATION CONTRACT ABB has won an order from Statoil for the upgrade of safety and automation systems at the important Heimdal platform in the North Sea, off the coast of Norway. The agreement with Statoil was signed in the second quarter of 2013. ABB’s scope comprises a new Human-Machine Interface (HMI) for the control system, control room modifications, simulator, fire and gas detectors, integration of telecommunication in the control room and information management systems (IMS). “We are upgrading parts of the safety and automation system on Heimdal to contribute to profitable and safe operation of the platform. ABB’s maintenance and modification service solutions extend the life span of installations that have been in operations for a significant amount of time”, said Per Erik Holsten, Manager of ABB’s Process Automation division in Norway. According to the agreement, ABB will have the complete
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engineering, procurement, construction and installation (EPCI) responsibility. “We are pleased that Statoil has the confidence that we can deliver this type of service with EPCI responsibility. The agreement strengthens our position as a supplier of maintenance, modification and service of existing fields and confirms our ability to manage complex projects involving all of our core areas: automation, power, telecommunication and instrumentation”, added Holsten. Today the Heimdal field has reduced its own production and the platform is now primarily a hub in the central North Sea for the processing and distribution of gas. The platform receives gas from the Huldra, Oseberg, Skirne and Vale fields and exports it via Vesterled or Statpipe pipelines for processing. At its peak the amount of processed gas in Heimdal represents 15 to 20 percent of the total Norwegian gas production.
Safe, reliable and efficient operations? Absolutely. ABB provides the latest technology and solutions to the Oil & Gas industry. From the field to the boardroom, our solutions help our customers achieve safe, reliable and efficient operations for today and tomorrow. We provide electrical, instrumentation, control and telecoms systems, lifecycle services and consultancy which improve asset productivity, minimize costs throughout the complete lifecycle, and extend equipment or asset life. To learn more come and meet some of our thought leading experts on Stand 3D 160 at Offshore Europe, or visit: www.abb.co.uk/ offshore-europe
ABB email: oilandgas@gb.abb.com www.abb.co.uk/offshore-europe
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UNDERWATER ENGINEERING SERVICES
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Specialising in the supply of marine and subsea support equipment to the diving, ROV and survey sectors of the global offshore industry. - Diver & ROV Tooling packages
- Hydraulic Power Units
- Diver Deployment Frames
- Winches & Deck Cranes
- Hydraulic Shear Cutters
- Hose Reels
- Precision Cable, Umbilical & Wire Spooling Service
UES - Part of the ATR Group West Pitmillan, Foveran, Ellon, Aberdeenshire, AB41 6AL t: +44 (0) 1358 789808
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Untitled-1
PRESS RELEASE PRESS RELEASE PRESS RELEASE Maser Communications (UK) Limited
Maser Communications (UK) Limited
June 2013
June 2013
&& & The Maser Group is pleased to announce its partnership
Maser Communications (UK) Limited
June 2013
The Maser Group pleased to its partnership with Dekoron in is supplying topannounce quality instrumentation The Maser Group is pleased to announce its partnership with Dekoron in supplying top quality instrumentation and control cable for refineries and petrochemical plants. with Dekoron in supplying top quality instrumentation and control cable for refineries and petrochemical plants. With more than 70 years in service, Dekoron cable is the most reputable indusand control cable for refineries petrochemical plants. cable in the US. Coupled withisMaser’s 30and years industry Withtrial more thanmanufacturer 70 years in service, Dekoron cable the most reputable indus-ex-
we supportinthe andMaser’s control 30 cable needs for refineries trial perience, cable manufacturer theinstrumentation US. Coupled with years industry exWith more than 70 yearsthe in instrumentation service, cable ishas the mostneeds reputable indusand petrochemical plants. TheDekoron Dekoron team extensive knowledge of supperience, we support and control cable for refineries “Dekoron management is excited trial cable manufacturer in the US. Coupled with Maser’s 30 years industry exporting cable needs for large projects. and petrochemical plants. The Dekoron team has extensive knowledge of sup“Dekoron management is excited perience, we support the instrumentation and control cable needs for refineries to expand our partnership with porting cable needs for large projects. and petrochemical plants. The Dekoron team has extensive knowledge of supto expand our partnership with Maser Communications and offer “Dekoron management is excited Shale Oil and Gas porting cable needs for large projects. Dekoron developed Gardex® Maser Communications and offer Shale Oil andhas Gas newour product lines inwith Europe” to expand partnership (Class 1 Division 1) cables specifically Dekoron has developed Gardex® new product lines in Europe” Maser Communications and offer Shale Oilmeet Gas to the tough demands of Shale (Class 1and Division 1) cables specifically - Mathew Nadakal, VP—Sales Dekoron has developed Gardex® new product lines in Europe” Oil and team is to meet the Gas toughextraction. demands Our of Shale Mathew Nadakal,Development, VP—Sales (Class 1 Division 1)the cables specifically and Business working network of producers, Oil and Gas with extraction. Our team is to working meet the tough demands of Shale and Business Development, operators, engineering and MRO - Mathew with the network offirms producers, Dekoron Wire and Cable Nadakal, VP—Sales Oiloperators, andpartners Gas extraction. Our team is in the industry. engineering firms and MRO Dekoron Wire and Cable and Business Development, working with partners in the the network industry.of producers, operators, engineering firms and MRO Dekoron Wire and Cable ATEX (ATmosphèresEXplosives partners – in the industry. French for Explosive Atmosphere) ApATEX (ATmosphèresEXplosives – proved cables: Atmosphere) ApFrench for Explosive ATEX Dekoron (ATmosphèresEXplosives – that meet has developed cables proved cables: French for Explosive Atmosphere) Ap- blockdirective IEC 60079-14 for gas Dekoron has and developed cables that meet proved cables: ing properties. These cables areblockmeant for directive and IEC 60079-14 for gas Give us a call for more Dekoron developed cables thatmeant meet certifiusehas in equipment needs ATEX ing properties. These that cables are for information on for ourmore products and Give us a call directive and Our IEC cables 60079-14 gasgas blockwillfor meet leak test at use cation. in equipment that needs ATEX certifiservices: information on our products and ingcation. properties. These cables are meant for Give us a call for more varying conditions as needed by the Our cables will meet gas leak testequipat services: use in ment equipment thatasneeds ATEX certifimanufacturers. information on our products and varying conditions needed by the equipMaser Communications (UK) Ltd, cation. Our cables will meet gas leak test at ment manufacturers. services: MaserUnit Communications (UK) Ltd, varying conditions as needed by the equip4 Axis Park, Fort Fareham Instrumentation Cables ment manufacturers. Unit 4 Industrial Axis Park,Estate, Fort Fareham Fareham, Maser Communications (UK) Ltd, Instrumentation cables monitor process Instrumentation Cables Industrial Estate, Fareham, Hampshire PO14 1FD Unit 4 Axis Park, Fort Fareham parameters such asmonitor pressure, flow speed, Instrumentation cables process Hampshire PO14 1FD Instrumentation Cables temperature transmit low Industrial Estate, Fareham, parameters suchand as pressure, flowvoltage speed,sigInstrumentation cables monitor nals to the instrumentation and process temperature and transmit low process voltage sigHampshire PO14 1FD Tel: +44 (0)1329 236000 parameters as pressure, flowprocess speed, room. Dekoron and cables are used nalscontrol to thesuch instrumentation temperature and transmit low voltage sigTel: +44 (0)1329 236000 worldwide in chemical, refining and heavy control room. Dekoron cables are used Email: nals to the instrumentation and process industrial applications. worldwide in chemical, refining and heavy Tel: +44 (0)1329 control room. Dekoron cables are used sales@masercomms.co.uk Email: 236000 industrial applications. worldwide in chemical, refining and heavy sales@masercomms.co.uk Email: industrial applications. Approvals and Ratings sales@masercomms.co.uk Dekoronand can offer a variety of ratings and standards for instrumentation products. Please discuss the specific rating and approvals Approvals Ratings
Contact Details: Contact Details: Contact Details:
required on of +44 (0)1329 or email sales@masercomms.co.uk. Dekoron can with offerMaser a variety ratings and236000 standards for instrumentation products. Please discuss the specific rating and approvals
Approvals and Ratings required with Maser on +44 (0)1329 236000 or email sales@masercomms.co.uk.
Presence, Local Knowledge DekoronGlobal can offer a variety of ratings and standards for instrumentation products. Please discuss the specific rating and approvals required Maser Local on +44 (0)1329 236000 or email sales@masercomms.co.uk. Globalwith Presence, Knowledge Global Presence, Local Knowledge
Untitled-1 1 OG9 Intro Section.indd 13
03/07/2013 14:10 09:01 18/07/2013
ENGINEERING
DESIGN
INFORMATION MANAGEMENT
Engineering Design and Information Management Software from AVEVA Building Reputations Owner Operators, engineering contractors and shipbuilders the world over trust AVEVA to create and operate the most complex engineering assets. We empower our customers to make thousands of accurate design, engineering and business decisions every day, across the entire project and asset lifecycle. You too can benefit from improved productivity, minimised risk and reduced costs, resulting in maximised ROI.
Visit AVEVA on stand 1G105
The leader in design, engineering and information management software for the process plant, power and marine industries, AVEVA invests in our customers’ success through a global sales and support network in more than 40 countries. AVEVA – building solid reputations for over 45 years
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ADVERTORIAL
AVEVA SOLUTIONS FOR THE OIL & GAS INDUSTRY AVEVA provides the world’s oil & gas industry with best-in-class design, construction and asset management solutions for all types of onshore and offshore facilities. Based on the most advanced technologies and proven in demanding global projects, AVEVA solutions are the de facto standard across the industry and mandated by most of the leading energy companies.
Powerful clash highlighting and resolution for clash-free construction Automated, just-in-time production of accurate, fully detailed deliverables Efficient collaboration between plant and marine specialists for the most demanding FPSO or FLNG projects
AVEVA for fast, efficient projects
Materials Management
AVEVA solutions save time and cost in projects of all sizes through:
AVEVA solutions enable full control of the entire material lifecycle, from accurate initial specification through to final installation, reducing the risks and delays of over- or underordering. Integration with 3D laser scanning enables verification of major plant modules before despatch to the construction site.
Accelerating project execution Knowledge capture and reuse Collaborative multi-site engineering and design Design for efficient, accurate fabrication and construction Providing the right information at the right place at the right time
Project Management AVEVA’s solutions are interoperable with industry standard business systems, give project managers full visibility of project progress, and ensure controlled access to project data, enabling: Effective project planning and control down to workface task level Robust change management Information management 4D construction management
Integrated Engineering & Design AVEVA’s powerful, proven and scalable engineering and design solutions enable: Unlimited project size Globally collaborative, concurrent engineering and design Design integrity between Engineering and 3D plant layout
WWW.THECONNECTSERIES.CO.UK
OG9 Intro Section.indd 15
Construction AVEVA solutions enable design for manufacturability and deliver the right information and material at the right time for each stage of construction:
About AVEVA AVEVA is a leader in engineering design and information management solutions for the plant, power and marine industries. For more than 45 years it has delivered business critical software solutions to owner operators, engineering contractors and shipbuilders around the world. For further information please visit: www.aveva.com/ ednotes.
Site works and logistics Fabrication Construction
Handover and Commissioning AVEVA’s advanced information management technologies enable dramatic savings in handover costs and accelerated rampup to full production, through progressive, phased handover of validated tag data and associated information from contractor to Owner Operator.
Follow AVEVA on twitter: @avevagroup Watch AVEVA on YouTube: www.youtube.com/avevagroup For customer success stories read AVEVA World Magazine at: www.aveva.com/Media-Centre/AWM
www.aveva.com/oilandgas
Operation and Maintenance AVEVA’s engineering portal and web-based collaboration tools provide easy, on-demand access to integrated, trustworthy plant information, helping maximise plant uptime and enabling safe, efficient operations.
Revamp and upgrade By integrating 3D modelling with laser surveying in the same 3D environment, AVEVA solutions enable efficient plant modifications, from routine maintenance tasks to complete life extension programmes.
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INDUSTRY NEWS
EUROPA OIL & GAS AWARD OF FRONTIER EXPLORATION LICENCES AND COMMENCEMENT OF 3D SEISMIC IN SOUTH PORCUPINE BASIN, OFFSHORE IRELAND Europa Oil & Gas (Holdings) plc has announced the commencement of a 3D seismic acquisition programme in the South Porcupine Basin, offshore Ireland, following the award by the Irish Government of Frontier Exploration Licences (‘FELs’) 2/13 and 3/13 to Kosmos Energy Ireland Ltd and Europa. Kosmos, as operator, undertook to accelerate the conversion of Licensing Options (‘LO’) 11/07 and 11/08 into FELs in order to bring forward the acquisition of 3D seismic into the summer of 2013. Accordingly, Kosmos have secured from Polarcus, a seismic contractor, the use of the ‘M/V Polarcus Amani’ vessel with which to acquire the 3D seismic. In tandem with this, Kosmos has also obtained the appropriate permits for this programme from the relevant departments of the Irish Government. FELs 2/13 and 3/13 are located over 75% of the area formerly held under
16
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LO 11/07 and 11/08 respectively, and combined cover approximately 1,500 sq km in the highly prospective South Porcupine Basin in the Irish Atlantic Margin. The FELs have been granted by the Minister of State at the Department of Communications, Energy and Natural Resources and are effective from 5 July 2013 and were notified to the operator on 11 July 2013. Each FEL lasts for a period of 15 years and is broken down into a maximum of four phases. The first phase of three years includes a commitment to acquire 740 sq km of 3D seismic on each licence. The second phase lasts four years and has a commitment to drill an exploration well on each licence. As with the original LOs, the FELs will be operated by Kosmos, who hold an 85% interest with Europa holding the remainder. Europa’s CEO Hugh Mackay said: “Out of all the Licensing Options awarded in the 2011 Atlantic Margin Licensing Round,
the three operated by Kosmos, two of which Europa has a 15% interest in, are the first to be converted into FELs. The early award of the full Licences, along with the immediate commencement of the 3D seismic acquisition programme, clearly demonstrate Kosmos’ intent to actively pursue in the South Porcupine basin similar Cretaceous plays to those that it pioneered in the Atlantic Margin basins offshore West Africa. “The recent entry of Cairn Energy and Woodside Petroleum into the South Porcupine basin, together with the ongoing drilling by ExxonMobil at the nearby Dunquin prospect, not only highlights the prospectivity of the basin but also the scale of the interest shown by leading names in the oil and gas industry. As a result of all this activity and with much more to come, the exploration vision of the early movers who participated in the 2011 licensing round has been endorsed.”
WWW.THECONNECTSERIES.CO.UK
18/07/2013 14:10
Quality
Location Schedule
A promising field in the heart of the Norwegian Energy Capital Currently in the design phase, Svanholmen B4-2/3 is an office complex in Forus West in Stavanger, surrounded by leading energy companies and key supply companies. The buildings are under planning and will accommodate up to 2,000 work spaces. The premises will be developed in close cooperation with the leaseholders, and can be adapted to meet their needs and wishes. Contact us to hear more about this unique opportunity – central, flexible and eco-friendly: Svanholmen B4-2/3.
Innovation
Sustainability
Technology
Flexibility
Operator
Infr
Infrastructure
Contact
Cost efficiency
Contact us Trond Hatlestad (+47) 901 36 152 Email trond.hatlestad@brodrenekverneland.no www.svanholmen.no
WWW.THECONNECTSERIES.CO.UK
OG9 Intro Section.indd 17
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The downhole flow control revolution Halliburton Red Spider has developed a range of downhole valves which are already changing the way operators are approaching intervention and completion work. The company’s flagship innovation, the eRED® valve, is a downhole computer-controlled valve that can be opened and closed multiple times by remote control - without the need for any intervention. The tool has been designed as part of Halliburton Red Spider’s Remote Open Close Technology product line, which can save time and money while simultaneously removing risk by eliminating interventions from operations. Any application where a wireline plug is used can be replaced by an eRED
valve, achieving the same results but without repeated intervention operations, saving on rig-time and helping reduce the associated costs and risks. Add the ability that the eRED valve can be repeatedly opened and closed and the flexibility of the tool becomes clear. The eRED valve has now been successfully used in over 160 operations by over 20 oil companies world-wide. During these operations, it has been successfully actuated over 350 times – each time eliminating an intervention from the operation. The technology is particularly suited for deepwater and subsea work where rig-time savings are most valuable. Operators that have used it have reported savings of more than
US$500,000 during a single subsea completion operation, typically by reducing slickline runs from eight to one. In deepwater workover operations, savings of up to 36 hours and US$750,000 have been recorded in a single job! The field-proven reliability and flexibility of the technology is encouraging many operators to turn to eRED valves and Remote Open Close Technology over more traditional well barriers - while those that are already using it are reaping the benefits time and time again.
www.redspiders.com www.halliburton.com
eRED® Remotely Operated Valve
save
24 hours rig time
Our eRED remotely operated valve typically saves 24 hours from subsea operations by removing interventions
OG9 Intro Section.indd 18
18/07/2013 14:10
ADVERTORIAL
EZTEK LIMITED CELEBRATES 20 YEARS PRODUCING SURFACE INSTRUMENTATION FOR THE OIL & GAS INDUSTRY Eztek Limited, a designer and manufacturer of hazardous area and harsh environment electronic instrumentation, has spent 20 years working with clients to develop products that answer the specific needs of the oil and gas industry. Its product ranges include wireline panels, data acquisition units, rig intercoms and video monitoring systems. Eztek also builds bespoke systems such as subsea surface control panels and well control equipment. “We work in collaboration with clients to find solutions. Over the last 20 years we have formed great relationships and gained a loyal client base,” says Robin Hunter, General Manager at Eztek. “In such an evolving industry, that is really something to celebrate.” Proving its commitment to quality, Eztek was awarded the ISO 9001:2008 certification in June of this year, after demonstrating adherence to strict qualitymanagement standards. Eztek Limited was established in 1993 by wireline specialist Bert van Tuijl, with the aim of improving the technologies used in the field. Since then, Eztek has developed products that are reliable, user-friendly, efficient, and often suitable for use in ATEX Zone 1 and Zone 2 hazardous areas. In response to the increased need for easy to use, versatile data logging solutions in drilling, intervention and production operations, Eztek designed the TallyBook range of ATEX compliant data loggers. The TallyBook is a compact DAQ system, with all components housed inside a single enclosure. The units were developed to provide a cost effective alternative to bulkier methods of data acquisition, which require more time and money spent on installation and training. In order to provide the best products possible, Eztek develops its own software for its DAQ units, allowing for quick response times to client requests. Mr. Hunter explains: “We can configure the software to record information from almost any kind of sensor. Occasionally we also get requests from clients who want specific parameters, different graph options and features. We try to accommodate their needs and we’re always honest about whether or not a change is possible.”
WWW.THECONNECTSERIES.CO.UK
OG9 Intro Section.indd 19
Eztek provides extensive support to clients, with an in-house software development team able to deal with any permutations arising during operations in the field. Software updates can be done via email and sent anywhere in the world, which helps operators cut costs and save time. The Zone 1 TallyBook is typically skid mounted and used for cementing logging and pumping operations. The unit has a 7” LED backlit screen, which provides clear real-time display of measurement data. The user is able to toggle between digital or graphical format. Where the Zone 1 TallyBook is being used for chemical squeeze operations, the accuracy of such operations is increased, reducing the cost. Previously, a chemical squeeze would need to be carried out every six months to maintain productivity of the well. With the application of Eztek’s technology, the expected time until the next intervention could be up to 15 months. The Zone 2 TallyBook is battery operated and portable, meaning no installation is necessary. It is typically used by service companies for wellhead and formation isolation valve testing. All of the TallyBooks can incorporate up to 32 inputs, with dedicated software configured to simplify operations. Eztek has also incorporated new technologies into its designs. The TallyBook
Touch, suitable for use in Zone 2 areas, features a 10.4” optical touch screen interface. The infra-red technology allows the unit to be used in wet conditions, even by workers wearing gloves. The clarity of the touch screen interface also allows the unit to be used with minimal training. Eztek is on target for current year goals, having secured £600,000 in contracts between April and May alone. This includes a contract with Expro for subsea surface control panels as well as an order for the development of new 10 way TalkBack rig intercoms for an Italian rig manufacturer. The intercoms will eventually be used in Siberia, where they will operate in temperatures as low as -50° C. Last year Eztek increased turnover by 20%, with export sales making up 40% of overall turnover. To cope with increasing demand the production facility was relocated into a climate-controlled ESD production area. In December 2012 the company also received planning permission for construction of a new two-storey office building. “We are growing the company in line with increased demand for our products and services,” says Mr. Hunter. “The new facilities, the ISO certification, and the further training of our staff ensure that we will continue to provide excellent service to our clients.”
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MANUFACTURING SPECIALIST OIL & GAS SOLUTIONS Part of the long-established Barrett Steel Group, we have manufacturing and supply centres throughout the UK and in Houston, USA together with a strategic presence in Europe, the Middle East and South East Asia. We are specialists in the supply of a wide variety of products to the Oil, Gas and Petrochemical industries.
PRODUCTS NICKEL & SUPER ALLOYS CARBON & ALLOY SOUR SERVICE STAINLESS DUPLEX SERVICES FORGING HEAT TREATMENT BORING MACHINING TESTING STOCKHOLDING
BARRETT STEEL Energy Products
www.bsep.com
Email: europe@bsep.com Tel: 01709 386690
Design & Print
Digital & Online
Databases & CD ROMs
Events & Sponsorships
Specialist Publishing, Media & Events Services We have a proven track record of providing high quality information and media services on behalf of our clients.
www.gisltd.co.uk
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16/07/2013 15:09 WWW.THECONNECTSERIES.CO.UK
18/07/2013 14:10
REFRIGERATED DELIVERIES WITH NO POWER SOURCE REQUIRED Offshore food deliveries are notoriously problematic due to the unreliability of power sources on ships. Award winning eutectic refrigeration company Eistechnik, however, provide the ideal solution. The Eisbox is a stand alone refrigerated structure capable of maintaining even deep frozen temperatures for several days without the need for a power source. It can be quickly fitted to any suitable offshore container and a fleet of these has been successfully operational in the North Sea for the last year. They use the new Eistechnik refrigeration which has opened a whole new chapter in eutectic refrigeration. Whilst eutectics themselves may not be new, previous systems suffered major drawbacks. Eistechnik has cured this by completely reengineering every aspect of the technology. This has resulted in shorter chargedown times (approximately ½ that of other systems) and greater thermal power. Test
results show that the deep frozen Barents3 eutectic gel has 49% more refrigeration power than anything comparable and the Barents1 gel, for chill use, lasts almost twice as long.
The Eisbox is fitted inside an offshore container as this is the most efficient and durable method. It is possible to fit an insulated lining to a conventional container
and indeed Eistechnik offer this option, but this potentially has severe drawbacks: if any water enters the insulated structure the insulation material is effectively ruined, the thermal performance and life span reduced accordingly. The result of all this? A technology previously languishing in the middle of the last century has been redeveloped to provide a prime choice for the 21st Century. Eistechnik is owned by Jackson Coachworks of Loughborough, and the systems are made in the UK. Jackson’s was founded in 1933 and built one of the first ever road-going refrigerated vehicles in the UK in the 1950’s. They have a wealth of experience in refrigeration and insulated structures which is probably what has enabled them to get all this so exactly right! Eistechnik are exhibiting at the TCS&D Show at Peterborough, September 18th & 19th, stand D2.
A UNIQUE REFRIGERATED OFFSHORE CONTAINER SOLUTION MAINTAINS DEEP FROZEN OR CHILLED TEMPERATURE FOR MULTIPLE DAYS WITH NO POWER SOURCE REQUIRED OVER 40% MORE POWERFUL THAN ANYTHING ELSE AVAILABLE
01509 244344 www.eistechnik.co.uk sales@eistechnik.co.uk
WWW.THECONNECTSERIES.CO.UK
OG9 Intro Section.indd 21
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Leaders in Surface Engineering for Critical Components
Curtiss-Wright Surface Technologies (CWST) is a leading global organisation that provides highlyengineered processes to enhance the life and improve the performance of critical components. Full contact and location details: www.cwst.co.uk eurosales@cwst.com Tel: +44 (0)1635 279621
CWST serves the world’s largest equipment manufacturers and engineers in major industries, such as aerospace, automotive, power generation, oil & gas, petrochemical, marine, medical and other specialty industries. Through a network of global facilities in close proximity to its customers’ footprint, CWST delivers the latest in hightechnology solutions – including world-class controlled shot and laser peening, thermal spray, engineered coatings and analytical services. Through this array of services and a combination of superior service, quality, reliability, expertise and flexibility, CWST works in partnership with its customers to solve their complex challenges and improve the life and performance of their products. Services include: l Controlled shot peening l Shot peen forming l Laser peening l Engineered coatings l Analytical services l Thermal spray
Business units of Curtiss-Wright Surface Technologies include: Metal Improvement Company
OG9 Intro Section.indd 22
Everlube Products ®
18/07/2013 14:10
INDUSTRY NEWS
EMAS AMC AWARDED £86.6MILLION FLOATER INSTALLATION CONTRACT FROM STATOIL EMAS AMC awarded a contract for the transport and installation of floating storage units (FSUs) for the Heidrun and Mariner projects in the North Sea, with an option for a third FSU installation Project award continues EMAS AMC’s winning momentum in the North Sea EMAS AMC, the subsea services division of EMAS, a global offshore contractor and provider of integrated offshore solutions to the oil and gas industry and the operating brand of Ezra Holdings Limited, announced that it has been awarded a transport and floater installation contract for two FSUs, with an option for a third, from Statoil for their Heidrun and Mariner fields. The contract is valued at approximately £83.63 million, including options. Mr C.J. D’Cort, CEO of EMAS AMC, said: “We have had multiple contract wins
since the beginning of 2013 for EMAS AMC in the North Sea. We are greatly encouraged by the momentum we have achieved, and are gratified by the show of confidence in us by oil operators there. “These awards will further help to grow our track record for operating in one of the most challenging environments in the world. These wins, coupled with increased activity in the Gulf of Mexico and Africa, are a clear recognition of our ability to execute a variety of subsea projects across our key global business regions.” The work scope for all three projects consists of the pre-installation of mooring systems, followed by the transport, hook-up and installation of the FSUs in their respective fields. The projects will be managed out of EMAS AMC’s Oslo office. The Heidrun field located off Norway’s west coast in a water depth of around 350m, came on stream in 1995 and as of
the end of 2012, it was estimated to have reserves of some 40.1 million cubic metres of oil, 31.3 billion cubic metres of gas and 1.7 million tonnes of natural gas liquids. Offshore operations by EMAS AMC are expected to begin in mid-2014. The Mariner field, one of the largest developments in the North Sea, is located off the UK Continental Shelf (UKCS) in a water depth of 110m, and is expected to produce some 55,000 barrels of oil per day over the plateau period from 2017 to 2020. Offshore operations by EMAS AMC are expected to begin in mid-2015. Mr Svein Haug, Regional Head of EMAS AMC (Europe and Africa), said: “We are extremely delighted to once again be working with Statoil for these developments in the North Sea. We look forward to executing and delivering these projects efficiently and safely, and contribute our subsea engineering capabilities for the offshore development of this region.”
OFFSHORE MACERATION SOLUTIONS? TRUST THE EXPERTS When it comes to maceration, there are few names as well recognized or respected as ours. The Haigh brand is synonymous with outstanding technical innovation, product performance and peace of mind. With an offshore supply pedigree spanning some 30 years, we have become the trusted partner of choice for sewage and food waste maceration. Our products have been put to the test in the most demanding situations, and with high levels of repeat orders from our customers we know that they perform well in the field. Reliability is key in off-shore applications and as the needs and complexity of this sector have developed so in turn has the range of products designed for these very specific types of application. Find out more at:
www.haightech.com
WWW.THECONNECTSERIES.CO.UK
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INDUSTRY NEWS
BP LAUNCHES GULF CLAIMS FRAUD HOTLINE Launch Comes as Allegations of Fraud and Corruption Continue to Surface. BP has launched the Gulf Claims Fraud Hotline to help protect the integrity of the claims processes relating to the Deepwater Horizon oil spill. The Fraud Hotline is a reliable resource for people who want to do the right thing and report fraud or corruption. Reports can be made of any fraudulent or corrupt activity, no matter where in the claims process it occurs – whether in the solicitation of the claim by attorneys, accountants or other claims preparation services, the preparation of the financial records and claim application, or the processing of the claim – and no matter whether the claim was filed with BP, the Gulf Coast Claims Facility (GCCF), or the Court Supervised Settlement Program (CSSP). The launch of the hotline comes as federal law enforcement officials are clamping down on cases of fraud and other abuses in the claims process. In recent
months, U.S. attorneys in Florida, Alabama more than 7,000 claims as “multiand Louisiana have secured guilty claimant scams or even efforts pleas and convictions against at criminal fraud.” The GCCF multiple individuals for referred more than half attempting to defraud the of these to the U.S. BP has spent over claims process and take Department of Justice money to which they are for criminal investigation. not entitled under the law. Tips received through on response & cleanWhat’s more, in the the Hotline will be up to help restore the face of troubling allegations reviewed and referred environment of unethical and potentially for further evaluation, if criminal corrupt behaviour warranted, to fraud investigators within the CSSP itself, the Court at the CSSP, the National Centre for has appointed Louis Freeh, former Disaster Fraud, or other law enforcement federal judge and Director of the FBI, as agencies. Tips that lead directly to an Special Master. Judge Freeh is leading an indictment, a recovery of money paid, independent investigation of the CSSP or the denial of a claim because of fraud with wide latitude to look for “possible or corruption may entitle the reporter to ethical violations or misconduct.” a reward. The launch of the Gulf Claims Fraud So far, BP has spent over £9billion Hotline is particularly timely because the on response and clean-up to help restore CSSP spends substantially less than the the environment. The company has also GCCF spent to combat fraud. This seems paid more than 300,000 claims totalling inappropriate given that the GCCF’s fraud over £7billion to help restore the Gulf detection program enabled it to identify economy.
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Established in 1949. Specialist fabricator of rolled and welded cylindrical products.
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Working to recognised offshore industry standards including EEMUA 158. Typical Products Include:
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• Thick Wall Cans and Tubulars
• Cones
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• Monopiles
• Winch Drums and Crane Pedestals
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• Piles and Pile Casings
• Bespoke Fabrications
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01384 480022
T: F: 0 1 3 8 4 4 8 0 4 8 9 e: sales@deepdale-eng.co.uk w w w. d e e p d a l e - e n g . c o . u k ISO9001:2008 accredited by LRQA
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The Institution of Chemical Engineers (IChemE) offers an extensive range of events and quality-assured training courses, tailored to support the career development of chemical, process and other related engineers. We constantly strive to meet industry needs and all our courses and events reflect this.
Gas Explosion Hazards on Offshore and Onshore Facilities 24–25 September and 26–27 September 2013
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Learn about all aspects of gas explosion hazards with this essential training course. It will address all aspects of hazards associated with vapour cloud explosions (VCEs): ignition processes, release and dispersion, explosion mechanisms, blast loads and modeling of all these aspects. Taking in place in Grimsby and London, this course is for you if you are a safety manager, supervisor or engineer, involved in design, operation or modification of an offshore facility, an accident investigator, or would like to develop and understanding of gas explosion safety. Find out more or register online at: www.icheme.org/gasgrm www.icheme.org/gaslon
Sustainable Oil and Gas 2013 25–26 November 2013, Edinburgh, UK Call for papers – visit www.icheme.org/sog2013 The conference will focus on chemical engineering solutions for more sustainable hydrocarbon production and use in Europe in the first half of the 21st Century. The main themes for oral and poster presentations are: ■■
upstream challenges and solutions
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shale gas and other new opportunities
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the future of refining and petrochemicals in Europe
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the carbon management challenge
Keep up-to-date with the latest conference developments by registering your interest at conferences@icheme.org
www.icheme.org
Tailored training All our courses can also be run in-house at a time and location convenient for you and your organisation, contact courses@icheme.org for more information
ADVANCING CHEMICAL ENGINEERING WORLDWIDE
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ADVERTORIAL: SCORE GROUP
SCORE GROUP THINKING LONG TERM Score Group’s valve services division is reaping the benefits of long-term thinking and we are now the most capable we’ve ever been, of helping our customers to focus on how to continuously improve their valve management long-term. Key to our service provision is a multiskilled workforce who doesn’t just work with valves but who fully understand every aspect of valves. Developing this workforce has been a long-term undertaking and has been achieved through our award-winning apprenticeship scheme. In the 25 years of our apprenticeship scheme over 500 apprentices have been trained and developed, the graduates of the scheme are young, skilled, dynamic
and have 6 years of solid engineering experience coupled with academic engineering qualifications. The flow of these talented people into our teams has allowed us to expand and diversify into all areas of valve management. We feel that we can truly offer the most comprehensive portfolio of valve services in the industry and approach every contract with the aim of helping our customer make long-term improvements to their valve management systems. Valve supply, overhaul and testing are the core services which meet the immediate needs but our ability to provide the additional services to improve performance and reduce downtime is where we can really make the difference.
We want our customers to think long-term about their valve management and to fully utilise our services including valve automation, upgrades, valve diagnostics & monitoring systems, maintenance training, safety valve benchmarking, enhanced temperature testing, reliability testing, engineering design & consultancy. Score Diagnostics, our valve diagnostics and monitoring division, are already developing the next generation of diagnostics and monitoring equipment which will further improve the valve services we can provide. Our long-term thinking is bringing our customers immediate results.
Score Group plc
Intelligent Valve and Gas Turbine Solutions™
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ADVERTORIAL: SCORE GROUP
Some historical approaches to valve management have been proven to be at best ineffective and inefficient and at worst highly dangerous. These historical approaches have included “run to failure” strategies or “calendar-based” approaches to maintenance interventions and the potential failings of these strategies are well documented. Score have created a positive stepchange forward in valve management by developing and releasing a range of valve condition monitoring equipment and systems which are proven to reduce risks and maximise efficiency and reliability in all processes where they are deployed. Condition monitoring is increasingly being seen as the best available method for managing valve populations - especially where there are critical valves installed. As a plant owner / operator, you need to know if your valves are leaking or not and if they are leaking, how bad the leak is. Additionally, on more critical valves you need to know if there is another ‘failure mode’ developing in your valves or
operators that will expose you to risks to people, process or plant (for example, in the event a critical valve fails to complete its design function such as closing or opening on demand). Score’s 30+ years’ experience of valve supply and Intelligent Valve Management™ has revealed that plant operators are facing the same recurring problems. As a general rule, 90% of the problems experienced by process operators result from just 10% of the installed population of valves which are not performing to the required standard. It is a major benefit then to be able to identify which the ‘culprit valves’ are. Furthermore, valve leakage represents major risks to plant operations. These risks include: Safety: loss of containment of process fluids presents a major risk to personnel working on the plant Environmental: leaking valves / loss of fluid containment represents a potentially major risk to the environment
Efficiency: lost production due to leakage and / or downtime due to poorly performing valves affects both plant efficiency and availability, which can result in both product and / or profit losses These risks can easily be managed through the intelligent monitoring of valves, based on their criticality, over their entire lifecycle (and any subsequent life cycles following maintenance interventions). All you need is the correct and reliable monitoring equipment, systems and techniques. Score’s MIDAS® Valve Diagnostic products use proven acoustic emissions (AE) technology to identify through valve losses / leaks and then use proprietary algorithms to calculate and quantify any leaks found. This range of market-leading valve condition monitoring products help you to troubleshoot problem valves or continuously monitor valves, then trend failures and move towards pro-active maintenance. The currently available range of Score’s valve condition monitoring equipment is detailed in the advert below.
OilGasAd_Print.pdf 1 04/07/2013 09:04:58
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INDUSTRY NEWS
EGDON GETS UK CHEVRON ADDS THIRD GROUP SPUD GO-AHEAD II BASE OIL HUB IN EUROPE Egdon Resources has announced that Lincolnshire County Council has granted Planning Consent for the drilling of an exploratory borehole on the Laughton Prospect in UK Onshore Petroleum Exploration and Production Licence PEDL209, located between the towns of Gainsborough and Scunthorpe in the East Midlands Petroleum Province. The prospect has multiple conventional Carboniferous sandstone reservoir targets with the primary objective being the Silkstone Rock, an approximately 15 metres thick sandstone interval which is productive in the Corringham oil field 5 kilometres to the South East. Egdon currently estimate gross Best Estimate Prospective Resources of around 1 million barrels of oil for the Silkstone Rock in the Laughton Prospect. Under the terms of a Farm-in Agreement Egdon will earn a 60% interest in the Licence in return for paying 100% of the cost of the Laughton-1 exploration well which is estimated at around £1.3million. Egdon expects to drill the well during 2014 as part of a planned East Midlands exploration drilling programme which, subject to planning, could include wells on the North Kelsey and Biscathorpe prospects.
Chevron Lubricants has many formulations,’ said Cary announced that it will be adding Knuth, General Manager, Base an additional storage facility Oils, Chevron Lubricants. for Group II base oil in ‘This new supply hub Eastham, England. This highlights Chevron’s is Chevron’s third Group commitment to providing It is expected to II supply hub in Europe reliable supply to European produce 25 kBD of in addition to storage lubricant producers as premium Group II facilities in Antwerp, Belgium they transition to new base oil and Hamburg, Germany. A formulations.” complete product line will be Chevron’s growing network inventoried at the facility, including of hubs in Europe will be supplied Group II grades, 100R, 220R, 600R with base oil from Chevron’s new state and Group II+, 110RLV. of the art base oil plant that is nearing Chevron’s growing Group II base completion in Pascagoula, Mississippi. oil presence in Europe will give lubricant When it starts-up, it will be one of the marketers more formulating flexibility largest base oil plants in the world and in meeting tightening specifications is expected to produce 25 kBD for better fuel economy and reduced (1250 kMT) of premium Group II base tailpipe emissions. Historically European oil. It is the third plant where Chevron lubricants have been formulated with premium base oils are produced for the some combination of Group I and Group company’s global supply chain. With III base oils plus additives that were readily the addition of the Pascagoula barrels, available in the European market. Chevron will become the world’s largest “Performance specifications are producer of premium base oil and the tightening in Europe to the point that only Group II producer with multiple Group II quality base oil will advantage plants producing fungible base oils.
25kBD
Visit us at Offshore Europe where we will be on the AMEC stand (5C70)
Performance Improvements (PI) Ltd is a global provider of design and optimisation solutions. We have an experienced multi-disciplined engineering team and can quickly develop and implement solutions to improve your plant’s performance and add value to your business. Our goal is to help you to maximise oil and gas production, minimise emissions, achieve optimal control and, of course, do all this safely. Overview of services: ■ Process design, troubleshooting, simulation and flow assurance ■ Flow measurement, allocation, and loss reporting ■ Training and procedures ■ BAT evaluations, energy assessments and monitoring software, emissions forecasting ■ Plant reliability and asset integrity ■ Control improvement, safety protective systems, HAZOP ■ Turbine and compressor control retrofits and fuel system upgrades
If you would like more information, or to book an appointment with one of our specialists during Offshore Europe, please contact sales@pi-ltd.com
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INDUSTRY NEWS
GE OIL & GAS EXPANDS SUBSEA MANUFACTURING CAPACITY IN THE UK Scotland Minister John Swinney, Secretary for Finance, Employment and Sustainable Growth, opens £10.4million GE Oil & Gas Facility Expansion in Montrose, Scotland. Expansion increases machining capacity by more than 40 per cent. GE’s Broader Strategy to boost subsea equipment production in Scotland will add more than 50 new jobs in Montrose in 2013 GE Oil & Gas has strengthened its position in the worldwide energy market, unveiling the results of a significant expansion of to its subsea systems manufacturing, test and assembly facility in Montrose, Scotland. The product of a £10.4 million investment, the Brent Avenue site has almost doubled in capacity, enabling GE to harness the growing global demand for its products and services.
GE Oil & Gas representatives met with industry and government leaders, including Scotland’s Secretary for Finance, Employment and Sustainable Growth John Swinney, MSP, as they gathered to mark the formal opening of GE’s newly expanded, 9,000 square metre Brent Avenue subsea equipment manufacturing and services facility. The expansion includes a new 2,250 square metre assembly and test facility, which will allow for the in-house manufacturing of large, deepwater horizontal subsea trees (DHXTs) used in the extraction of oil and gas reserves from the seabed in some of the most challenging environments across the globe. It also will lead to a significant increase in machining capacity,
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from 63 systems a year to more than 90, as well as in-house machining of much larger vertical tree systems (DVXTs), allowing GE Oil & Gas’ Subsea Systems business to meet anticipated long-term demand. Included in the investment is a new state-of-the-art assembly and test line for the construction and testing of sub-assemblies and master valve blocks (MVBs). The site will now be able to produce all key components, from raw material through to a fully built, flat packed subsea tree. Growing subsea activity and GE’s increased market share prompted the investment, which also is expected to lead to an increase in staff numbers from 85 to 138 at the facility during 2013. The expansion project ties in with GE’s broader strategy to modernize and upgrade the company’s U.K. subsea manufacturing facilities to keep pace with the global demand for critical subsea production components. “GE’s ongoing investments in its Brent Avenue facility is a direct reflection of both the skilled and dedicated workforce we have here, as well as our need to align our production capacity to quickly respond to the growing demands for our offshore products and services,” said Rod Christie, CEO—Subsea Systems, GE Oil & Gas. GE Oil & Gas has been heavily investing to expand the capabilities of its existing facilities in the U.K. GE recently announced the expansion of its Newcastle facility, which specializes in the engineering and production of Wellstream high-quality flexible pipeline products and solutions used in the subsea oil and gas production sector. The move was made possible with a Regional Growth Fund grant of £3million pounds to help with the expansion and will support us in the creation of 200 new jobs. GE also has recently spent more than £620,000 modernising the Master Control Station (MCS) workshop and Subsea Electronics Module (SEM) at its Nailsea facility near Bristol. Earlier in the year, GE announced plans to create a new subsea centre in Bristol at the city’s Aztec West Business Park, creating another 200 new jobs.
ENGINEERING COMPANY BRINGS MORE JOBS TO TEESSIDE Engineering company Fabricom Offshore Services has relocated its Teesside operation to larger premises in a bold move that reaffirms its commitment to the North East. The move to the ‘state of the art’ premises at Wynyard Park House comes only weeks before the company is due to celebrate its sixth anniversary. Currently, there are 24 engineering and project personnel working out of the Wynyard office. The new site will give Fabricom Offshore Services the ability to expand its operations with additional capacity to over 50 personnel. The Wynyard Office is an engineering execution centre and home to the Fabricom Offshore Services Concept Study Group, which consists of multi-discipline engineers, including a number of experienced Process Engineers with access to advanced engineering design software. Complementing the Concept Study Group, a multi-discipline team of engineers and designers provide support to various active projects for clients such as EnQuest, Talisman Sinopec, Maersk Oil, GDF Suez E&P UK and Total E&P B.V.
BRIDGE ENERGY SIGNS RIG CONTRACT FOR ARAGON PROSPECT IN UKCS Bridge Energy, the Oslo Børs and AIM listed oil and gas exploration and production company, has announced that it has entered into a contract with Dolphin Drilling to secure a drilling slot with the Blackford Dolphin semisubmersible rig. The rig will target the Aragon exploration prospect in the UK Northern North Sea, with this well expected to be drilled Q1 2014. Bridge has a working interest of 13.5% in the Licence, with MPX North Sea 22.5% (Operator), Agora Oil & Gas (UK) (a wholly owned subsidiary of Cairn Energy) 30%, JX Nippon Exploration & Production (UK) 25% and Sorgenia E&P (UK) 9%. Tom Reynolds, CEO of Bridge Energy, commented: ‘We are pleased to have secured this rig slot, which will kick-start our 2014 exploration drilling programme early in the year. The Aragon prospect is located near to the Beryl field and is targeting the Upper Jurassic Heather Sands. This UK exploration target provides material upside potential, whilst also demonstrating the depth of opportunities which exist within our portfolio’.
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Specialist suppliers of PPE and safety equipment to the Oil & Gas industry • Comprehensive stocks of Flame Retardant garments including: Antistatic, Lightweight, Thermal, Nomex and Inherent options • Flame Retardant Tropical climate Clothing
• In-House logo Branding • Global distribution networks • Same Day Despatch • Global PPE management systems
T: 01224 707468 | E: sales@donsidesafety.co.uk
www.donsidesafety.co.uk
Donside Safety specialise in the supply of PPE products to the Global Oil & Gas industry. With over 50 years combined industry experience and in-depth technical and product knowledge, they ensure that the products, services and advice provided is to the highest quality. Crucially, they keep abreast of changes in legislation, working practices and product developments to ensure the working environments of their clients are safe and compliant. Based in Aberdeen, with a new purpose built storage facility in Peterhead, they are strategically situated in two of the busiest service centres for the North East Oil & Gas sector. They have large stock holdings ready for in-house logo branding and same day dispatch worldwide. A strong and growing organisation, the Donside team commit fully to exceptional customer care experiences, which reflects why so many Oil & Gas corporations put their trust in this reliable company.
www.donsidesafety.co.uk
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DIARY OF
EVENTS
NOTICE: All dates were correct at time of going to print, however, these may be subject to change. Please check first with the organiser. If you have any dates you would like to display in our next issue, please email jade.byrne@theconnectseries.co.uk. If you or your company are interested in sponsoring the next diary of events then please call our sales team on: 01937 580400 (Ext. 2)
SEPTEMBER 3RD - 6TH
1ST - 2ND
SPE OFFSHORE EUROPE CONFERENCE AND EXHIBITION ABERDEEN
OIL & MONEY 2013
Tel: 0208 439 8890
Tel: 0207 061 3538 Web: www.oilandmoney.com
Web: www.offshore-europe.co.uk
17TH EEEGR ENERGY INNOVATION AWARDS DINNER Holiday Inn Norwich North
Tel: 01493 446535
Web: www.eeegr.com
19TH EXPLOITING DEEP WATER FIELDS The Geological Society, Burlington House, Piccadilly, London
Tel: 0208 123 2237
Web: www.findingpetroleum.com
InterContinental London Park Lane, London
2ND EXPLORING INTERNATIONALLY FOR UNCONVENTIONAL OIL AND GAS The Geological Society, Burlington House, Piccadilly, London
Tel: 0208 123 2237 Web: www.findingpetroleum.com
8TH ENERGY STORAGE - EXAMINING THE POTENTIAL FOR THE UK Engineers’ House, Bristol, UK
Tel: 0207 467 7179 Web: www.energyinst.org
22ND - 23RD
OCTOBER 1ST OFFSHORE DECOMMISSIONING CONFERENCE 2013 The Fairmont Hotel, St Andrews, Scotland
Tel: 01224 577 250 Web: www.oilandgasuk.co.uk
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SHALE GAS ENVIRONMENTAL SUMMIT Holiday Inn Regents Park, London
Tel: 0207 827 6000 Web: www.smi-online.co.uk
29TH - 30TH 16TH ANNUAL GAS TO LIQUIDS CONFERENCE 2013 Millennium Gloucester Hotel and Conference Centre, London Tel: 0207 827 6000 Web: www.smi-online.co.uk
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FOR A COMPLETE RANGE OF HAZARDOUS AREA SOLUTIONS Intrinsic Safety Isolators • Zener Barriers • Zone 1&2 Remote I/O • Fieldbus Exe Enclosures • Exd Control Panels • Ex Lighting • Purge Solutions • Zone 1 & 2 HMI’s PC’s
www.pepperl-fuchs.co.uk
Tel.: 0161 6336431
sales@gb.pepperl-fuchs.com
NOVEMBER 7TH OIL & GAS UK AWARDS AECC, Aberdeen
Tel: 01224 577250 Web: www.oilandgasuk.co.uk
19TH - 20TH THE OIL COUNCIL’S WORLD ASSEMBLY Old Billingsgate, London
Tel: 0207 384 8058 Web: www.oilcouncil.com
20TH THE OIL COUNCIL’S 2013 ANNUAL DINNER & AWARDS OF EXCELLENCE Old Billingsgate, London
Tel: 0207 384 8058 Web: www.oilcouncil.com
20TH - 21ST 19TH RESERVOIR MICROBIOLOGY FORUM 2013 (RMF 2013)
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Energy Institute, London
Tel: 0207 467 7174 Web: www.energyinst.org
25TH - 26TH OIL AND GAS CYBER SECURITY 2013 CONFERENCE Tel: 0207 827 6000 Web: www.smi-online.co.uk
If you would like to add an event to our online diary of events then head over to:
oilandgasconnect.co.uk/diary Oil&GasCONNECT cannot guarantee that events will be added to either the print nor online diary of events and reserve the right to exclude any content that is deemed unsuitable for the publication.
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FEATURE: A DAY IN THE LIFE
LIFE UNDER PRESSURE: A DAY IN THE LIFE OF A SAT DIVER Words: Penny Hitchin
Image: Tim Mudge, Saturation diver on a Dive Support Vessel (DSV) in the North Sea
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T
im Mudge works as a saturation diver on a Dive Support Vessel (DSV) in the North Sea. While offshore he lives inside a pressurised chamber with 11 other divers. The chamber is kept at the pressure of the water at the dive site so that the divers do not have to decompress after every dive. They decompress only at the end of the period at work, which can be up to 28 days. “It takes time to adapt but once the body is acclimatised, which usually takes a day or two, you don’t really notice that you’re under pressure, apart from the fact that everyone sounds like Donald Duck because the nitrogen in the air you breathe is replaced with helium.” The divers work in four teams of three which enables work to carry on around the clock. The divers’ day follows a regular pattern. The three divers who are working the 12-12 shift day wake up around 1100 and then have a couple of hours to get a pre-dive meal and send a few emails or phone home. Tim says, “I’m very fortunate that the vessel I’m working on at the moment has Wi-Fi, phones and TV. When I worked as a sat diver in India the vessel had none of this. The conditions and welfare in the North Sea are much better and you can live a normal day.” Divers can spend eight hours in the bell, locked off the system. That means typically six hours in the water. The team of three alternate every day between bellman, diver 1 and diver 2. Work starts with a dive briefing. The gear (hot-water suits and tools for the task), is locked into the pressurised system ready for the descent.
Tim explains, “At 1500 the bellman, the standby diver in the bell, does bell checks with the vessel supervisor to make sure the equipment is good.” The divers don their hot-water suits before entering the bell which is checked, then locked off from the system for the descent which takes perhaps 20 minutes to reach depths of 130 metres.
The underwater environment Saturation diving is not for the claustrophobic. Tim describes the journey to work: “You dive from the bell which is locked off the system, loaded into the water and lowered down to the working depth. It’s very small and very cramped.”
The divers are the sharp end of a complex operation involving as many as 300 people on-board. The bellman sits in the dry environment of the bell throughout the shift breathing gas supplied from the surface by umbilical. “The bellman is suited up, able to leave to lock out and leave the bell in an emergency. He’s looking out for you if there is a an emergency,” says Tim The two divers wear dry helmets that lock round their heads enabling them to breathe gas supplied by umbilicals attached to them. The umbilicals also carry power, hot water and communications equipment. Divers carry emergency bottles containing enough gas to get back to the bell.
Tim says, “We have speaker phones and a microphone inside the hat, as well as a camera and lights attached. We are in constant communication with the other diver and the supervisor on the boat in dive control who watches the images from the camera. He’s in charge of the job, giving instructions.” The dive boat is a sophisticated and powerful vessel which uses DP (dynamic positioning) to maintain its position above the divers. The divers are the sharp end of a complex operation involving as many as 300 people on-board. This includes project crew, boat crew, managers, clients, technicians, riggers, bell launch and recovery people, life support team (for divers) and the ROV team. There is no light penetration at sat diving depths, but divers can usually see the lights of the bell. In an emergency they know they can follow their umbilicals back to the safety of the bell! “You don’t go far from the bell. You have maybe 30 metres of umbilicals in the water. Any more than that and the boat is moved to you,” Tim explains. If the vessel has two bells, there will be an in-water handover with the next team. The team coming off the job then return to their bell, close and seal the door for recovery to surface where the bell is locked on and pressurised so that it is equal to the system pressure. The doors open to allow the divers to transfer through to the chamber and take off the gear, which is sent to the support team outside who wash and check it. Tim says, “We have our showers, order some food from the menu, watch a bit of TV then go to bed and the next day it starts again”.
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FEATURE: A DAY IN THE LIFE
Acquiring the skills and experience for offshore sat diving Like most commercial divers, Tim is self-employed. He trained as an air diver six years ago seeking a break from study after completing a Master degree in Marketing and Economics. “You start commercial diving as an air diver and log all hours until you have enough hours to do your saturation course. As an air diver, 50 metres is your maximum depth and you decompress after each dive, mainly surface decompression (in a chamber on a vessel) because there isn’t the time for you to spend hours in water decompression. I did three years as an air diver, working locally first and then abroad.” Tim did the specialist three week sat diving course at The Underwater Centre in Fort William. “The attraction of sat diving is financial and also it is a natural progression. Air diving requires decompression after every dive which is bad for your health. It does take a toll on you. With sat diving you might be in sat for 28 days and you only do one deco – whereas if you went down every day you would do 28 decos.” Divers must be adaptable and get on well with their colleagues living and working in confined spaces. “Until you get to the vessel, you don’t really know the situation. It might be 28 days or it might be only three days in sat. Like any job offshore, it’s always subject to change.” The job pays extremely well: what are the other rewards? Tim says, “Construction is my favourite: you build something, you achieve something and you can see the results, which gives job satisfaction.”
Image: The Underwater Centre
6 HOURS Divers can spend eight hours in the bell, locked off the system. That means typically six hours in the water.
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130 METRES The bell which is checked, then locked off from the system for the descent which takes perhaps 20 minutes to reach depths of 130 metres.
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Intersorb® Ensures Safety in Saturation Diving Oil and Gas Companies operate in a global marketplace with ever more stringent safety regulations governing the sector. Subsea contractors and sub-contractors must adhere to the same regulations and be able to demonstrate that they can provide services that meet workplace safety best practice. Saturation diving services are one such area where safety is paramount in order to maintain critical life support systems for divers that may spend many weeks on board a vessel in an enclosed saturation diving chamber. Critical to maintaining the atmosphere within the saturation diving chamber, are the various gas purification chemicals which remove dangerous gas contaminants such as carbon dioxide, carbon monoxide, sulphur compounds and VOC’s. Without these chemicals, a safe breathable atmosphere would be impossible to maintain.
Saturation Diving
Premier Chemicals Ltd is a global supplier of chemical consumables
Intersorb® is a soda lime based carbon dioxide absorbent which has demonstrated exceptional performance in removing carbon dioxide from saturation diving gas. Carbon dioxide is produced by the divers’ respiration and is the main gas contaminant which must be removed from the atmosphere within the SAT System. With a global reputation as a high quality carbon dioxide absorbent used in medical, diving and industrial applications, Intersorb® is becoming the absorbent of choice for a growing number of subsea contractors supplying saturation diving services.
for diving gas conditioning in saturation diving chambers.
Your global partner for diving gas conditioning SODA LIME PURAFIL ACTIVATED CARBON HYPERBARIC WELDING CATALYST
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www.premchemltd.com
For further information on supply of Intersorb® and other diving gas conditioning chemicals, contact Premier Chemicals at subsea@premchemltd.com +44 (0)1480 878 134 subsea@premchemltd.com www.premchemltd.com
Shock Alert!
Simple asset management from the experts Intrinsically safe condition monitoring solutions Monitor performance of mechanical equipment in situ with intrinsically safe (ATEX certified) condition based ShockLog. • Clear and immediate alarm notification of potentially damaging conditions • On-going records of mechanical performance during use for preventative maintenance purposes
Tel: +44 (0)1462 688070 | Email: Sales@the-imcgroup.com | Visit: www.the-imcgroup.com Intelligent monitoring and control solutions: In Buildings | In Transit | Outdoor/Remote
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FEATURE: NORWEGIAN INNOVATION
Image: © Nightman1965 Fotolia.com
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FEATURE: NORWEGIAN INNOVATION
NORWAY‘S INNOVATION SPREADS Words: Penny Hitchin
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orway became an oil producing nation in 1971 with the first production from the Ekofisk field. Experience of offshore oil and gas production since then has made Norway a major player in the oil and gas industry. It is the world’s second-largest net exporter of gas and the seventh-largest exporter of oil. Norwegian rights extend to the harsh and challenging conditions of the more northerly latitudes of the Norwegian and the Barents Seas as well as the North Sea. The Norwegian oil and gas industry developed from established indigenous skills and in mining, maritime operations and construction. Inputs from foreign operators and suppliers were essential in the early days, but Norway is now home to a thriving and innovative oil and gas technology sector whose expertise is used worldwide. Norway’s success in oil and gas development has been boosted by dynamic industrial and technological development. The Norwegian government provides tax incentives for research and innovation in the industry and nearly a third of all Norwegianbased oil and gas companies spend at least four percent of sales on R&D. Statoil and Aker Solutions rank in the top 500 EU industrial companies for investment in R&D. Challenges encountered in activity on the Norwegian Continental Shelf require significant innovation and this has often been accomplished through cooperation between operators and suppliers. Research and development in subsea technology thrives in Norway.
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The ‘cluster dynamic’, which is management-speak for the observation that innovation thrives in the presence of related businesses, may account for some of this, as seen in the high degree of collaboration between suppliers of technology solutions and operators yielding innovative new products. International oil and gas companies are attracted to locate R&D centres in Norway. Schlumberger’s Research Centre in Stavanger focuses on developing cross-disciplinary tools and workflows for geophysical reservoir characterization and monitoring through the automated analysis and modelling of subsurface measurement data. UK energy production technology services company Proserv set up its global R&D hub in Trondheim, Norway’s technology centre, to deliver its subsea innovations to the global market. Proserv’s Trondheim team has recently developed the Seahawk in-situ video surveillance system which is used as an alternative to ROVs for environmental monitoring and retrofit on brownfields. Seahawk’s in-built camera takes highquality video and uses images to verify and confirm existing warning signals to determine a real threat. New technology developed in Norway spreads rapidly across the North Sea for use in UKCS. The significance of links between the UK and Norwegian operators can be seen by the frequency of flights between Aberdeen and Norway. Up to eight flights a day fly from Aberdeen to Stavanger and on to Oslo on weekdays, with at least two to and from Bergen every weekday.
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FEATURE: NORWEGIAN INNOVATION
Case study: PTC Norwegian oilfield technology specialist Petroleum Technology Company (PTC) is an inventive company set up in Stavanger in 2002 to provide high end innovative well technologies to the oil industry. PTC has developed a reputation for coming up with solutions to client problems, and prides itself on devising innovative new designs to address the identified shortcomings rather than tweaking existing designs. A great example is PTC’s Safelift range of gas lift valves which were developed to meet Statoil’s request for a gas lift valve that could also be relied upon as a well barrier valve. The valves take an innovative approach to gas lift valve design, using a metal/metal seal valve that is erosion resistant, chatter free, delivers zero leak performance, and is rated for operating at up to 10,000 psi.
PTC has a range of offerings in the market for artificial lift equipment as well as wellhead barrier valves, sensors and intervention equipment. The company opened its Aberdeen office in 2009 and its range of equipment is now in use in the fields across the UKCS. It also has sales offices in Houston and Rio De Janeiro. PTC’s research and development team in Stavanger consists of half a dozen talented, mechanical engineers working on new ideas. Some have a background in the oil industry, but it has been a deliberate choice to bring in others from non oil backgrounds to give a fresh perspective.
The valves take an innovative approach to gas lift valve design, using a metal/metal seal valve that is erosion resistant, chatter free, delivers zero leak performance, and is rated for operating at up to 10,000 psi 40
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UK business development advisor Alan Brodie says, “We always say that rather than clever, we are nimble and inventive. Some of our ideas for products have been conceived on the back of clients saying that the products they buy from our competitors need some improvements. Often the big companies aren’t interested in doing the tweaking as it’s too expensive to reconfigure equipment.” PTC opened its UK office four years ago. “Since then, we have established a pretty strong market share and we are selling equipment to probably 90 per cent of the major operating companies in the UKCS,” Brodie adds. The PTC team pick up intelligence from within the industry, giving them ideas about useful potential new products. The website has an invitation called ‘Challenge Us’ where PTC invites clients to identify challenges for which it can develop solutions.
Image Above (Back): © Statoil
Image Above (Front): © Pavel Losevsky Fotolia.com
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ACT H IS A F NCE SPEEC PERIEURE OF X E N WHE UST A FIG J NOT
SUCCESSFUL LOGISTICS IS ABOUT DELIVERING ON OUR PROMISES... With almost four decades’ experience of servicing the needs of the Oil and Gas industry, Danbor knows this and it's in part why we have built up a remarkable reputation for quality, service and reliability. • • • •
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ADVERTORIAL
BESPOKE SOLUTIONS With a trading history of more than 140 years and extensive experience in supplying LV Products such as Power Distribution, Motor Control Centres, Package Sub-Stations, Control & Instrument Panels as well as providing fully integrated SCADA/PLC/HMI control systems to a diverse range of industry sectors, Blackburn Starling has evolved into a global supplier with an unrivalled reputation for technical excellence and product innovation.
The company offers a comprehensive range of fully type tested standard built products, utilising proven technology, including fixed and withdrawable equipment, conventional and intelligent options, fault ratings up to 100kA for 1 second and ingress ratings up to IP54. Blackburn Starling’s spacious and modern 4½ acre site incorporates total in-house manufacturing facilities which allows flexibility and gives Blackburn Starling the capability to manufacture custom
Presently working in the oil and gas market with major companies such as Amec, Wood Group Engineering, Shell UK, BP, CNR International, GDF Suez and many others, Blackburn Starling has a multi million pound portfolio of offshore projects.
built solutions, tailor made to satisfy the specific and unique needs of individual customer requirements. This flexibility allows the company to guarantee required delivery dates allowing the customer to plan operation shutdowns with minimum downtime confidently. Presently working in the oil and gas market with major companies such as Amec, Wood Group Engineering, Shell UK, BP, CNR International, GDF Suez and many others, Blackburn Starling has a multi million pound portfolio of offshore projects. The company undertakes contracts as small as offshore site surveys to major multi million pound overseas installations. With an experienced team of fully trained personnel the company routinely provides complimentary services such as site surveys (on-shore/off-shore), project management, installation, commissioning, maintenance, service contracts and training.
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Blackburn Starling & Company Ltd, Queens Drive, Nottingham, NG2 3AY. Tel | +44 (0)115 986 6331 Fax | +44 (0)115 986 0301 Email | sales@blackburn-starling.co.uk www.blackburn-starling.co.uk
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FEATURE: ONSHORE OIL & GAS
THE HIDDEN OILFIELDS OF SOUTH ENGLAND
One of the hot topics in current energy policy is the extent to which unconventional gases, notably shale gas, can be exploited in the UK. The scenic downs of southern England may seem an unlikely location for drilling, yet the geological basins of Wessex and the Weald have been yielding valuable conventional gas and oil onshore for decades.
Words: Penny Hitchin
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Rural Dorset: home to Europe’s largest onshore oilfield Europe’s largest onshore oilfield is in Dorset, beneath a protected area of natural beauty which is also a world heritage site. The field contributes nearly 85 per cent of UK onshore oil production and over 40 per cent of onshore gas. The picturesque Isle of Purbeck on Dorset’s Jurassic Coast is the centre of production for the Wessex Basin at the Wytch Farm oilfield, which lies deep under the area around Poole Harbour and Poole Bay. Long before commercial exploration started, small seepages of oil were found in different places in Purbeck, but their source was a mystery. The first prospecting licences under the 1934 Petroleum Production Act were granted to the D’Arcy Exploration Company and drilling started the following year. The first wells were drilled at Broad Bench near Kimmeridge but were unsuccessful. Nearly 40 years later, British Gas hit the jackpot when it discovered reserves of natural gas while drilling at Wytch Farm. Production of 6,000 barrels a day started in 1979. BP took over in 1983 and in 2011 management passed to Perenco UK Ltd, when it acquired the Kimmeridge field and a controlling interest in the Wytch Farm and Wareham fields. Total production from the three fields is around 16,000 barrels of oil per day and Perenco is currently applying for consents for new developments which will increase output.
The Wytch Farm site houses a central gathering and processing station which is fed by clusters of wells in the surrounding countryside. The well sites are generally small and screened by trees. During the operational life of Wytch Farm, drilling has identified deeper target horizons, and developments in drilling technology have led to horizontal wells extending up to 10km long offshore, increasing production from existing onshore production sites. Two other, smaller oilfields also operate in the Purbeck area – the Kimmeridge Oilfield and the Wareham oilfield, and their products are exported via Wytch Farm. Some gas is used to fuel Wytch Farm’s on-site generation and the rest is exported via pipeline into the National Grid. Oil products are sent by a 90km pipeline to Hamble tank farm on Southampton Water and directly from site by road tanker. Recovered water is used for injection at some well sites.
Harvesting hydrocarbons from the Weald basin The Weald Basin is to the east of Dorset and oil and gas deposits lie deep below the Hampshire, Sussex and Surrey countryside. Production from the Weald Basin makes up 5 per cent of the UK onshore oil production and 18 per cent of onshore gas production. In 1895, a well drilled to provide water for the railway station at Heathfield in Sussex encountered gas. This subsequently became Britain’s first natural gas well when the gas was
Image: IGas
used to provide light for the station. During the 1930s, some exploration of the Weald took place, but no reserves of any significance were found. It took the discovery of the Wytch Farm Oilfield and the introduction of new seismic techniques before exploration resumed and production got under way. Exploration in the 1980s led to the discovery and operation of a dozen oil and gas fields (all much smaller than Wytch Farm) across the Weald Basin. Two years ago IGas, one of the UK’s leading onshore hydrocarbon producers, acquired the small Weald Basin oil and gas fields from Star Energy. It now operates oilfields in Hampshire, Sussex and Surrey and gas fields in Surrey. The Albury Gas Field lies on the northern margin of the Weald Basin in Surrey. IGas has flow tested the well at a rate of up 260 barrels of oil equivalent per day. The company plans to install plant and equipment to cool and
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FEATURE: ONSHORE OIL & GAS
liquefy the natural gas from the well site. The gas will be super cooled in stages down to a temperature of – 162 degrees Celsius. The liquid natural gas (LNG) is to be stored in a tank on site and exported daily via road tanker. IGas’s Singleton oilfield is tucked away in woodland on the southern margin of the Weald Basin, a few miles north of Goodwood racecourse, in the picturesque Sussex Downs. It has been producing oil for about 25 years. The wells are hundreds of feet deep and spread right under and across the Weald basin to tap into an estimated 9million barrels of oil. The characteristic ‘nodding donkeys’ or beam pumps are painted to match the surrounding trees which muffle noise from the site, especially when the trees are in leaf. Drilling at Humbly Grove Oilfield in north east Hampshire, just north of Alton, started in 1980. Oil and gas were extracted and a gathering station,
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pipelines and a rail export terminal were constructed. In November 2005 the facility started storing gas using a natural reservoir and surface facilities, contributing to balancing gas supply and demand within the national gas transmission system. Under the management of Humbly Grove Energy Ltd the field is currently operating as a gas storage service (NTS) within the UK and continuing to produce oil. Onshore sites are small by modern standards but they provide an economically attractive proposition and continue to make a contribution to the UK’s oil and gas requirements. Production takes place at a number of onshore fields in Wales, Scotland and elsewhere in England. All the onshore sites discussed are in environmentally sensitive rural areas of southern England. It is a tribute to the safe operations on the sites that these discreet and little-known onshore oil sites cause so little controversy.
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10th Annual North Sea Decommissioning Conference
Researched & Organised by:
3rd-4th December, ArdoeHouse Hotel, Aberdeen
Take away industry best practice and key lessons learned to develop and execute a flawless decommissioning programme â Regulatory Update. Hear the latest updates from key regulators for Decommissioning in the North Sea plus an outline of the industry’s future should Scotland gain independence in 2014 â Decommissioning Liability Costs. Receive a broad perspective of Operators methodology for calculating Decommissioning costs to discover best practice and improve 3rd party auditing â Strategy Development. Prepare for your decommissioning projects with a thorough analysis of best practice for preparation and data gathering to ensure you have the tools to ensure maximum efficiency on your projects
SAVE £100 discount code: OGC100
â Well Plugging and Abandonment. Hear about the different P&A methods from around the North Sea to ensure long-term well Integrity to reduce time and overheads for P&A â Innovations. Discover the latest technologies that are being applied to decommissioning projects around the globe to evaluate the most suitable and cost effective advances that can be used on your projects
The 10th Annual North Sea Decommissioning conference will analyse each significant step of decommissioning to ensure you make the best judgements and reduce uncertainty when preparing for your decommissioning projects.
Book now - visit www.decomworld.com/nsd or phone us on +44 (0)207 375 7510
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10/07/2013 12:04
Having been in Aberdeen for over forty years, sourcing and procuring oilfield supplies, equipment and spares, Midcontinent’s name has become synonymous with first class quality and excellent service. Midcontinent is more than just a distributor. We are an established supply store with the knowledge and expertise in serving customers onshore, offshore & worldwide.
Precision Mechanisms for High Performance Environments
With most of the sales staff having 30 years plus experience, we would like to think that if there’s an item you require then we can locate it for you... If you have not tried Midcontinent before, you are one of the few so why not give us a try...
Sub-assemblies for steerable drilling and intelligent down-hole tools Rotary and linear motion devices for pipeline welding and inspection Sub-sea geared systems
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W: www.midcontinent.co.uk
E: aberdeen@midcontinent.co.uk Midcontinent (Aberdeen) Ltd, Blackness Road, Aberdeen, Scotland, AB12 3LH
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02/07/2013 14:22
www.reliance.co.uk +44 (0) 1484 601000 sales@reliance.co.uk
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FEATURE: ROBERT GORDON UNIVERSITY
IMAGINING THE FUTURE OF THE GLOBAL OIL AND GAS INDUSTRY Words: Stacey Horne
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he oil and gas sector has emerged swiftly from the recent global economic downturn and is back on an upward curve. The robustness of the industry has surprised even some industry leaders and brought regained confidence to the sector. However, if the storm of recession forced the industry into seeking a clear trajectory, the current climate of opportunity appears to be much more difficult for industry leaders to navigate - according to a new report conducted by Robert Gordon University (RGU) and sponsored by Dana Petroleum, with launch support from PwC. The new research, conducted by RGU’s Aberdeen Business School, entitled Leadership Voices, Imagining the future of the Oil and Gas Industry, canvassed the views of over forty senior leaders working around the world. Forty in-depth qualitative interviews were conducted with industry leaders, based in a variety of locations throughout the world,
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Leaders say they still crave a more positive public image of a caring, dynamic and essential industry. They want the industry to be more visible publicly about its achievements and ambitious future goals. between February and April 2013. Interviews were conducted with a wide range of companies both in size and function, including; operators, contractors, integrated oil and gas companies, service companies, financial service providers, exploration and production companies, consultancy firms, IT and technology companies, industry representative bodies, training providers and recruitment specialists.
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FEATURE: ROBERT GORDON UNIVERSITY
Professor Rita Marcella, Dean of Aberdeen Business School at RGU, said: “Industry leaders have shared a willingness to reflect on the future of the industry and the kind of leadership needed to take the industry forward in a world of unparalleled technical and political change. “This report will hopefully enable the industry to discuss what this world might look like and identify how it can best adapt to those challenges.” Dana Group Chief Executive Marcus Richards said: “This fascinating report gives a real insight into the uncertainty surrounding the future shape of the oil and gas industry. “Smaller players, more flexible, agile and entrepreneurial in approach, are seen as playing an ever increasing role. “Our industry has a secure, longterm future but we as leaders need to create the structures and partnerships that will enable us to meet the world’s ever growing demands for energy in a sustainable way.” Richard Spilsbury, oil and gas partner at PwC, commented: “This report drives home the ongoing ‘war for talent’ facing the industry: from retaining the skills needed to exploit more challenging remote reserves and operate ageing infrastructure in mature basins, to understanding the needs and aspirations of the next generation of talent ensuring a strong pipeline for the future. “It also highlights the importance of growing and nurturing inspirational leaders of tomorrow who will bring creative solutions to the challenges, responsibly address the business and operational risks, improve the industry’s profile and, crucially, build public trust to exploit the opportunities as they arise.”
The need for improved communications is crucial at a time when the sector faces enormous challenges in attracting and retaining talent. 48
The new research conducted by RGU’s Aberdeen Business School, entitled Leadership Voices, Imagining the future of the Oil and Gas Industry, canvassed the views of over forty senior leaders working around the world. The report shows an industry confident in its technical ability but uncertain about the shape of the future - particularly in the balance of power between international oil companies (IOCs), national oil companies (NOCs) and service companies. The report also identifies concerns about finding the kind of visionary leaders who will help shape the oil and gas industry of tomorrow. Senior executives expressed their concerns about the looming skills shortage and the pressing need to improve the industry’s reputation. A large majority of the leaders interviewed identified recruitment as a main challenge for the sector – especially recruiting the next wave of professionals for the industry to fill the gap left by baby boomers retiring and to ensure companies can draw on people with the right mix of technical skills, experience and proven capability. Wage inflation is raising the costs of tapping into a limited pool of flexible skills which are needed for increasingly demanding projects and resourcing remote operations. To attract the right kind of people and fulfil its potential, the industry must do more to change its negative reputation, says the report. Leaders say they still crave a more positive public image of a caring, dynamic and essential industry. They want the industry to be more visible publicly about its achievements and ambitious future goals. The need for improved communications is crucial at a time when the sector faces enormous challenges in attracting and retaining talent. The report found that the reasons for such lack of understanding and appreciation from the broader public are seen as manifold but most agree that the
responsibility lies primarily with the industry itself – in particular with oil majors. A culture of secrecy and the fallout from recent high-profile environmental disasters, such as the Macondo well blowout and oil spill in the Gulf of Mexico, are partly to blame. Leaders expressed few concerns about future oil and gas prices as projects get larger, more complex and expensive. However the industry is far more concerned about host Government’s ability or willingness to provide long term, stable and predictable taxation and legislative frameworks. Convincing Governments of the crucial importance of tax and legislative stability is one of the priority tasks of industry leaders. North Amercia, Australia, Asia – specifically Malaysia and Singapore – were singled out for their stable tax environments, with greater uncertainty in Africa. While stability is important for all investors some respondents argued that fiscal policy should also discriminate in favour of smaller, often financially strapped but entrepreneurial companies, to encourage them to open up new areas. “This research has reaffirmed that the global oil and gas industry is far from being a sunset industry”, the report concludes. It also shows that 2009-2013 has been a period of recovery and one of steadily increasing optimism. The industry is now in a positive, opportunity rich place with confidence about its future role in global energy supply. This is, therefore, a critical moment for the global oil and gas industry, particularly its leaders, to imagine its future and overcome the challenges.
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Solutions for a safe and secure workplace A trusted partner for manufacturing and industrial businesses for over 50 years!
Please reference 'GasOil' when you contact us Freephone
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8:30am - 5.30pm Mon-Fri, GMT Outside UK: +44 1295 227227
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Website
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sales@seton.co.uk
Secure 24 hour online purchasing
Place an order, get quotes, ask questions
18/07/2013 14:11
Q&A: DAVID EDWARDS
What brought you into the industry/your position? I started in this industry straight from university working for BP, which gave me an excellent start in new technology development. My area was in combustion and flare systems and this gave me opportunity get involved in upstream and downstream operations worldwide. Being paid to have fun with technology and contributing to some major projects was a fantastic start in my career. Since then I have had other interesting and rewarding roles, but when I was appointed as Chief Executive of the Engineering Construction Industry Training Board (ECITB) in 1999, I was delighted to get closer to the oil & gas industry again, albeit from a different perspective.
My ambition is in five years time the ECITB will be more widely recognised internationally. There will be 5,000 apprentices and graduates being supported by the ECITB and we will have achieved our 2,000,000th learner. This is at least double from where we are now. Also, I believe new standards will have been developed to support the changing nature of skills across the industry.
What is your greatest career achievement to date? Without doubt my greatest achievement has been to lead a transformation of the ECITB. Since I became Chief Executive, the ECITB has increased output, reduced training delivery costs and become more responsive to the industry’s needs.
DAVID EDWARDS CHIEF EXECUTIVE
ENGINEERING CONSTRUCTION INDUSTRY TRAINING BOARD (ECITB) Now my job is helping to ensure that skilled and motivated people are attracted to the engineering construction industry and have the opportunity to be developed to their full potential, benefiting both them and the industry. Working with apprentices and graduates is equally rewarding and I still get to appreciate the technology and engineering prowess involved.
What developments do you expect to see in the next 5 years at ECITB? The oil & gas industry will be facing some major challenges in the next five years and the ECITB will be in a position help it meet those challenges. In particular the industry is facing a severe lack of skilled people. The ECITB is working on a transition programme where skilled employees with experience of other sectors can take part in training which is focused on re-skilling and upskilling workers from other sectors who wish to work in the oil and gas industry.
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Other achievements include inventing new technology and installing and commissioning systems offshore so that oil and gas can be produced safely. All of these are achievements to savour, but I feel that there is a lot more to do and that I have not peaked yet.
What do you enjoy most about your job? All of my jobs have had the same basic ingredients: problems to solve, a deadline to meet, resources to manage and above all else, lots and lots to learn. In the past I learned about technology and systems, now I learn about people, behaviour and change. People are the key to success for every project, however large or small. Therefore being in the business of influencing what people are trained in and orchestrating new ways of training, changing behaviour and ultimately project performance is great. The fun comes from doing all of this with a group of great people.
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Q&A: DAVID EDWARDS
If you could change anything about the oil and gas industry what would it be and why? Dealing with extreme risks and hazards is the day to day business of the oil and gas industry. One of my priorities and that of the ECITB has been to work with Step Change in Safety to improve safety in the oil & gas industry. This year sees the 25th anniversary of the Piper Alpha disaster. With that in mind, the ECITB is continually working to improve its standards of skills and training so that a tragedy like Piper Alpha can never happen again.
What is the best advice you’ve been given? Concentrate on doing your job well and take every opportunity to learn something new. Offer to do the work nobody else wants to do.
What law/legislation would you like to see introduced? My view at the moment is that the number one issue to address is training sufficient people for the industry. Training is still seen by too many as a cost. I wholeheartedly applaud those companies who, year on year invest in its people. Therefore my law would be to make sure every employer makes a fair and reasonable contribution to sustaining the skills pool.
What advice would you give to someone starting out in the industry? I can’t really top the advice I was given, but I would add, be patient and make sure you understand something or someone before you comment. There will be times when things seem to be happening to you and you are not in control. Learn to control what you can and accept what you can’t. When I have been in these situations, the greatest stress reducer is getting a plan of action in place.
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What inspires you? Like many people, seeing results and the fruits of one’s efforts is inspirational. Giving certificates to apprentices is symbolic of the culmination a lot of effort by many people. I collect ideas and I enjoy seeing a plan and people come together and get going. Then I am inspired to the next challenge. I especially like seeing professionalism, people putting others’ positions ahead of their own and working for the greater good. People and companies rising above their own parochial self-interests; that is truly inspiring.
Where do you see the UK Oil & Gas industry in 10 years? I believe that the UK oil and gas industry will be even more important to the UK economy 10 years from now. It will be a driver for technology and innovation. There will be more work, in new provinces and there will be the need to clear away old facilities. I’d like to see more investment in the oil and gas supply chain industries such as engineering and manufacturing, so that it’s engineering base is sustained. I expect to see more collaboration between all those involved in keeping the Oil& Gas industry a driving force in the UK economy.
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Established for over 30 years, Zoedale is a leading provider of actuated solutions for offshore and onshore use. From 30Nm to 610,000Nm, as well as ATEX and Failsafe versions. Our specialist areas are technical sales, consultancy, servicing and commissioning, and we’re dedicated to delivering all this with a reassuring customer service.
Zoedale is a UK distributor for Bernard Controls, Valpes, Omal and Schischek products.
Zoedale Plc
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@ZoedaleUK
www.zoedale.co.uk
01224 909097
18/07/2013 14:11
FEATURE: KNOVEL
NEW PROFESSIONAL DEVELOPMENT TOOLS FOR THE INTERNET GENERATION OF ENGINEERS
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Words: Andy Brown An Engineer and Director of Corporate Sales EMEA, Knovel
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he skills shortage in the oil and gas industry highlights the need for employers to find new methods and tools to help graduate engineers become as effective as possible when they join the workforce. Yet, universities also play a key role in preparing students. Engineering employers expect students to have a strong grounding in engineering and physics. Secondly, they must have problem solving experience; a core skill they will need in their career. The emerging graduate engineers will be generalists and through the professional development support provided by an employer they will acquire specialist skills. To get there, students need to learn how to think and understand the issues behind problems, and they need to become information literate. In other words, they need to know how to find answers by searching, sorting and evaluating information critically, and they must conduct research properly to ensure that answers can be validated. This means using trustworthy sources that have been vetted, so students are able to reference that material and make the right citations. These are all the very things a practising engineer has to do before being allowed to sign off on a job. An audit trail is required and compliance issues met. The internet has led to an explosion of freely available data, and it has become more difficult and time consuming for students and practising engineers to sift through all of the material available to validate data of
The adoption of online reference tools has been notable in the oil and gas, engineering design, industrial equipment and process industries. As many companies have employees worldwide, the consistency and continuity online references provide are valued by users. interest. For the internet generation of engineering students, an ingrained habit to turn to search engines including Google or sources such as Wikipedia is one to be broken as much of the data is unreferenced. Even if an apparently reliable source is found, payment is often required before the research can be examined to see if it is worth the investment, wasting limited time and funds. With this challenge in mind, online reference tools, such as Knovel, have been developed specifically for engineers that provide answers from vetted sources, such as professional societies and respected publishers, to which universities, corporations or institutions can subscribe. Many University Engineering Departments have adopted online reference tools based on validated data sources because it helps students solve problems in the way in which they will need to do once they enter the workplace - and it suits the internet generation. Validated data, interactive online tools and the ability to document and share reliable sources are key factors.
The adoption of online reference tools has been notable in the oil and gas, engineering design, industrial equipment and process industries. As many companies have employees worldwide, the consistency and continuity online references provide are valued by users. Engineers can use the same data wherever they are, and have it online at their fingertips allowing them to work faster and smarter. Using validated sources also means younger engineers can search for data reliably with minimal support from senior engineers. With many companies competing to recruit trained petroleum engineers these resources can support the development of new graduates with energy-related degrees and also be used as part of conversion programmes to get engineers from other industrial sectors up to speed on oil and gas engineering. Online tools using validated data can satisfy educational and professional demands and are valuable to Universities training engineers and to companies that want to ensure engineers can further develop their skills throughout their careers.
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LAW: BURGES SALMON
GUARANTEEING TAX RELIEF FOR DECOMMISSIONING: WHAT WILL IT MEAN?
Decommissioning Relief Deeds, expected to be available for signature later this year, will provide contractual certainty for UKCS oil and gas operators on the UK tax relief to which they will be entitled in respect of future decommissioning activities. This is expected to stimulate a sizable flow of funds into and within the sector, benefiting companies all along the supply chain.
Words: James Phillips James.Phillips@ burges-salmon.com
Alice Yan Alice.Yan@ burges-salmon.com
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he commitment in the March 2013 budget to introduce Decommissioning Relief Deeds (“Deeds”) later this year came as a long-awaited relief for the UK oil and gas industry. Under the Deeds, if the tax relief currently available for decommissioning costs associated with UKCS oil and gas installations was reduced in the future, the Government would make a compensating payment. The Deeds, which are effectively a future guarantee of tax relief, have been regarded by operators and potential investors as increasingly important given the age of many UKCS assets and the projected profile of decommissioning expenditure generally. For example, annual decommissioning expenditure in the North Sea has been predicted to grow by 100% in the next few years from the current £500million, with Decom North Sea forecasting a total spend of £30billion over the next 15 years. The Deeds will provide long-term certainty for the sector, which is key to unlocking previously dissuaded asset transfers and investment, particularly in respect of mature and late-life fields.
Ending uncertainty The Deeds evolved from a discussion between Government and industry leaders on addressing the uncertainty in decommissioning tax relief, which has spanned many years. The Deeds were initially a mechanism proposed by the industry, and this mechanism has been developed by the Treasury in close consultation with industry leaders (as well as through public consultation) over the last two years. Currently, tax relief for decommissioning costs is given against ring-fence corporation tax (“RFCT”), supplementary charge (“SC”) and petroleum revenue tax (“PRT”) where the expenditure relates to fields within the PRT regime. It is usually available by way of a combination of reduced tax liabilities for qualifying expenditure and a refund of tax previously paid. Critically, however, relief is only available when decommissioning actually takes place, which for many fields will be years in the future when the tax regime (and level of relief) is unknown and, consequently, not currently guaranteed.
The promise of certainty has already begun to unlock asset sales. The Deeds have significantly lowered the tax risk and thus the capital required to purchase. Decommissioning projects necessitate significant expenditure, therefore the amount of tax relief available becomes a critical factor in any financial decision relating to an offshore asset. Uncertainty surrounding the amount of future relief acts as a serious impediment to current investment into the sector, both from internal and external sources. It acts as a barrier to entry by new investors, as projected abandonment costs form a material aspect of project valuation. Existing owners of offshore assets are also discouraged from investing in new technologies and prolonging the life of existing fields in fear that existing relief may be lost through future tax changes.
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Uncertainty also makes it harder for assets to change hands; the risk of future default on decommissioning liabilities by the buyer of an asset is a serious concern for any seller, since the seller retains certain liabilities under the Petroleum Act 1998 even once ownership of the asset has been transferred. Consequently, the seller will often ask for security to be provided by the buyer against default on a pre-tax basis – eating into the buyer’s borrowing base. These deterrents to the flow of funds into and within the sector have intensified in recent years – driven by an SC increase and a new cap on the rate of SC relief for particular decommissioning costs. The promise of tax relief certainty has already begun to unlock asset sales. The Deeds have significantly lowered the tax risk and, in turn, the capital required to purchase. The following example neatly illustrates the Deeds’ impact in numerical terms. Currently, a company is commonly required to provide security for its decommissioning liabilities on a pre-tax basis. A Deed acts to reduce this security amount by guaranteeing the level of tax relief available at the point of decommissioning, thus enabling calculation on a posttax basis. If the security amount is £10million (pre-tax) and tax relief is guaranteed at current rates of 50% (30% for RFCT and 20% for the SC), the security amount would reduce to £5million. The availability of Deeds will also free up capital for investment and funding of further exploration and production. It is hoped that this, in turn, will result in new jobs and technology upgrades. Speeding up asset sales and greater investment would of course have long term benefits, potentially extending the productive life of the UKCS.
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Without sustained business, many companies in the decommissioning market have been reluctant to invest in extending facilities, new equipment and training new employees. A steadier flow of decommissioning activity is undoubtedly necessary to create an optimised market for decommissioning and drive efficiencies and innovation. Acceleration of decommissioning? There are an estimated 600 installations and associated infrastructure, approximately 5,000 wells and nearly 10,000km of pipelines in the North Sea, the majority of which lie in the UKCS. Many of these structures have been producing oil and gas for almost forty years and are now coming to the end of their economic lives. However, decommissioning has been slow and sporadic, with only a relatively small percentage decommissioned to date. Without sustained business, many companies in the decommissioning market have been reluctant to invest in expanding facilities, new equipment and training new employees. A steadier flow of decommissioning activity is undoubtedly necessary to create an optimised market for decommissioning and drive efficiencies and innovation. The advent of Deeds will make planning and budgeting for decommissioning easier and remove some of the uncertainty, but it is not expected to bring forward a flurry of decommissioning projects. In fact, Deeds are expected to help unlock a greater amount of trading in late-life assets, prolonging the life of certain ageing assets that may otherwise have been headed for decommissioning. There will come a time when the number of ongoing decommissioning projects will be sufficient to drive the levels of investment and innovation required to maximise efficiencies and reduce decommissioning costs.
However, other factors, such as global oil and gas prices, security of supply issues, technological advances and investment appetite in ageing assets will be likely to influence this far more than the availability of Deeds themselves.
What will the Deeds look like? The model Decommissioning Relief Deed (the “Model Deed”) was published on 28 March 2013. Subject to some technical amendments, it is likely to broadly represent the final form Deed. The Model Deed is a 17-clause bilateral contract, made between the UKCS participant and the Lords Commissioners of Her Majesty’s Treasury. It is expressed to be enduring and irrevocable until terminated by the parties’ written mutual agreement. In basic terms, any company that is subject to the UK oil and gas tax regime is eligible to sign up and be a party. The Model Deed provides tax relief certainty to two distinct forms of expenditure, as follows: “ordinary decommissioning expenditure”, being that incurred by a company to discharge its own decommissioning liabilities; and “imposition decommissioning expenditure”, being that incurred by a company as a result of another party’s failure to meet its own decommissioning liability.
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The Model deed also establishes reference tax relief amounts for each of RFCT, SC and PRT. If a participant is incurring ordinary decommissioning expenditure, the reference amount for RFCT and SC will be the prevailing rate on the day on which the Finance Act 2013 comes into force (subject to a SC cap of 20%). If a participant is incurring imposition decommissioning expenditure, the reference amount is fixed at 30% for RFCT and 20% for SC (i.e. reference is not made to prevailing tax rates). In respect of PRT, the method for calculating the relevant tax relief amount is more complicated as PRT relates back to the field’s revenue (as opposed to a specific participant) – as such, reference needs to be made to the amount of PRT levied on current interest holders and their predecessors (such amount being certified by HMRC). If, at the date of incurring qualifying decommissioning costs, a participant receives less tax relief on any of the three taxes compared to the relevant reference amount, it is entitled to make a claim for the difference (known as a “Difference Payment”). Claims are made against money provided by Parliament. The company’s rights under the Model Deed are not assignable, but may be used as security to a bank or financial institution
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The North Sea From the dark days of the budget of 2011, the future of the North Sea oil and gas sector looks and feels much brighter in 2013. It is perhaps too early to be talking about a new ‘dash for gas’, even in light of the Government’s new Gas Strategy and the removal of this aspect of political uncertainty as an obstacle to investment. However, in the coming years we may well look back at Decommissioning Relief Deeds as being a significant milestone in helping to unlock the full potential of the North Sea.
The Model Deed was published at the same time as the Finance Bill 2013 and should be considered alongside it. The Finance Bill provides a particularly important point of reference for the meaning of decommissioning expenditure (which includes expenditure on onshore infrastructure used for offshore production) and the rules around loan relationships arising from decommissioning security settlements. The Model Deed also includes ‘dummy’ schedules setting out matters such as the process by which HMRC will issue certificates to evidence PRT history – which are essential for obtaining the level of guaranteed PRT relief available on decommissioning. Seeking to provide contractual certainty to investors is not unique to the oil and gas sector; for example, the Government is also proposing to put in place contractual arrangements to guarantee the tariffs which will be received by renewable generators pursuant to the current Energy Bill. The availability of contractual
protection helps to remove political risk from the equation; any comfort in the form of an Act of Parliament or secondary legislation could ultimately be repealed or amended by the current or future Governments. Deeds will not be capable of amendment unilaterally, binding both parties to the principles agreed.
Image: © eyeidea Fotolia.com
Next Steps Arrangements for the signing of Deeds are expected to be announced following the summer recess. In the meantime, the industry will no doubt be focusing on amending existing decommissioning security arrangements to reflect this new certainty. Licence agreements may be amended to reduce the amount of security which licensees currently provide to interested parties concerned about having to bear this liability on default. This is no small exercise, and the Oil & Gas UK working group has already begun developing standard wording for its own standard Decommissioning Security Agreements to assist this process.
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FINANCE: EBT SCHEMES
HMRC CONTINUE TO INVESTIGATE EBT SCHEMES Words: Stephanie Crawford
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hroughout 2013, it has been reported that HMRC have opened a large amount of enquiries relating to the tax affairs of contractors, who have been or currently do operate through EBT schemes – potentially damaging to contractors involved. With the tax at stake, as well as any penalties, charges and interest now owing is likely to be significant to say the least. Many do intend to defend themselves against these enquiries, which would appear at this stage to be very unpleasant and stressful! A common knowledge EBT scheme enquiry is the Rangers Football Club administration case of 2012 – a very direct link to the ‘contractor community’. Over the past few years we have seen accountancy providers pushing offshore EBT schemes, ‘guaranteeing’ that contractors will be able to take home upwards of 80% of their income – significantly more that would be taken home when using the most tax efficient, legal structures in the UK. In Rangers case, HMRC challenged their use of offshore EBT’s to pay their staff and players, believing this to constitute tax avoidance. Going back over a decade of accounts, HMRC have levied a claim of close to £49million – adding on penalties, Rangers are looking at a claim of around £75million, and that is before the addition of legal costs and charges! There have for many years been allegations of scaremongering pointed at anyone who dared to challenge EBT schemes as wrong. With most of the traditional accountancy solutions for contractors suggesting clients
EBTs are generally operated by a trust, giving the client a non repayable loan or a loan on favourable terms, which scheme providers have marketed as a legitimate tax planning arrangement. are always better off in the operating through a Limited Company, which is an accepted and tax efficient way of operating.
EBTs – what are they? EBTs are generally operated by a trust, giving the client a non-repayable loan or a loan on favourable terms, which scheme providers have marketed as a legitimate tax planning arrangement. HMRC however will argue that the majority of these types of structures are tax evasion. These schemes have been around for about twenty years and are predominantly used by higher earning individuals. They tend to operate from a low or no tax jurisdiction where there is no tax charge on the user until the money benefit has been distributed from the trust. There have been many iterations of EBTs often involving loans, non repayable loans, gifts and shares.
The risks of EBTs EBT participants that have been highlighted in many reports tend to go into the schemes in good faith, often as a result of very aggressive and glossy marketing and have been left with little support when challenged by HMRC, a very large legal bill and the prospect of a large tax bill hanging over them.
For a contractor working in the oil and gas industry, earning the industry average day rate of £540 and operating under an EBT scheme, an HMRC claim for tax avoidance over a ten year period, would amount to almost £150,000 – add penalties at the same rate as Rangers Football Club and you would be looking at £225,000 - which you would have to foot the bill for – is it really worth the risk? HMRC have certainly upped their game in the battle with offshore tax payers, who market these tax schemes to Contractors.
The future of EBT schemes From December 2010, EBTs are no longer effective as a tax planning vehicle as legislation was effective from then, with HMRC arguing that many were never effective, but tax evasion. EBTs won’t just disappear, and may be promoted in the future with the provider being evasive about disclosing information to you about it. What we can be certain about is that HMRC will target such schemes that they consider to be scams and it will be YOU, the client, who will be left with the tax investigation and no doubt a very large penalty to pay. If you are unsure or think you might have cash flow problems, speak to your accountant!
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FEATURE: ECOSYS
USING PROJECT COST CONTROLS TO ALLEVIATE RISK The high demand for oilfield goods and services and rising fuel and labor costs has resulted in the increased cost to build and operate oil and gas facilities. At the same time, oil and gas construction projects have become larger and more complex. Better performance tracking and delivery optimisation has never been more critical.
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n effective solution for navigating these complexities is the use of automated tools and processes for project cost controls. Project cost management software systems aid companies in aligning their capital investment strategies with strict project execution requirements to ensure ROI is realized. Effective cost controls solutions not only improve profitability, but they are also the key to building detailed budgets, maintaining data accuracy, measuring project expenditures against plan and delivering timely reporting. Cost and schedule overruns can be anticipated in advance, when there is still time to take corrective actions.
Accounting for risk The development of risk contingency plans, which detail potential risks and the mitigation strategies should an event occur, have long been standard practice when accounting for project risks. Financially, the establishment of a ‘contingency’ fund to be used when risks are realised is also very important, although the methodology is often outdated. Traditionally, the value of the contingency budget is determined based on a fixed percentage of the project budget, using historical data to dictate the percentage. This process, however, is static and can unnecessarily hold significant amounts of funds hostage over the life of the project.
With a modern project cost management solution, the contingency can be seamlessly integrated with a change control process. When risks move from a potential occurrence to one that will have an actualised budget impact, the system will enforce the necessary approvals, draw down from contingency, and apply the appropriate changes to budgets and forecasts. Conversely, when a risk is averted, the processes in place can return contingency funds to the organisation, which can now make better use of the funds.
The importance of visibility Managers of complex oil and gas projects can be overwhelmed by the sheer volume of data to track. Through all the moving parts and multiple stakeholders, from the finance and project controls departments all the way through to the C-Suite and outside contractors, the problem is often the same: siloed data and a lack of transparency. Historically, the project cost management discipline has relied on highly manual processes for data collection and reporting, which impact the speed and accuracy of the information delivered. Analysis and reports may be delivered too late to allow for corrective measures to be enacted. The goal should be a single, integrated source of data that can be accessed in real-time for reporting on project performance, through role-based dashboards, on-demand cost reports, all in an intuitive web-based view.
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Project cost management solutions lend visibility to project progress and help to uncover issues before they lead to overruns that cut into margins. How is this achieved? With real-time access to integrated data, project controls analysts can create what-if scenarios directly within the cost management system, account for worst-case scenarios and have contingencies defined based on realistic scenarios. With access to cost and schedule data in a single system, Earned Value Management (EVM) techniques can also be applied in scenario analysis. EVM is a project controls discipline that measures project progress against the agreed plan. Fundamental earned value metrics, such as Cost and Schedule Performance Indices, can be used to automatically calculate Independent Estimates at Complete, objective forecasts of the total cost of the project based on actual performance trends. The ability to effectively control projects and predict potential outcomes ahead of time can be
While projects inherently have risks which must be accounted for and monitored, a full lifecycle project controls system can also help mitigate risk at a very early stage – during project selection.
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The ability to effectively control projects and predict potential outcomes ahead of time can be the difference between finishing a project on time and budget and having massive overruns that are only apparent in the week and months after all expenditures are accounted for. the difference between finishing a project on time and budget and having massive overruns that are only apparent in the week and months after all expenditures are accounted for. By having historical data as a guide and current data available in real-time, organisations have the tools to make better, more informed decisions during the course of the project.
Choose your projects wisely While projects inherently have risks which must be accounted for and monitored, a full lifecycle project controls system can also help mitigate risk at a very early stage – during project selection. As an organisation chooses among the potential projects that can be executed, various factors come into play. What are the inherent risks of an individual project? What does the investment return in net present value (NPV)? Is the project aligned with strategic objectives? These types of variables can be weighed and quantified in a project controls system to help determine when or if a project should be undertaken.
Additionally, looking at a portfolio of projects, a project controls solution can work to balance an organisation’s supply of resources against the resource demands of existing and potential projects. This analysis can identify delay-causing labour shortfalls and margin-eating surpluses at the earliest of planning stages. As the oil and gas industry continues to evolve, so must the technology implemented by it; current technologies are necessary to promote project and financial success. With all spending under the watchful eye of C-level executives, even the most profitable oil and gas companies are turning their attention to more effective cost controls practices. The industry can benefit from solutions that provide ways to better manage the risk associated with large capital projects. Through the standardisation of processes and automation of reporting, project controls software helps to deliver projects more efficiently, on time and closer to budget.
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TROUVAY & CAUVIN UK LAUNCH A NEW RANGE OF SUBSEA PRODUCTS Trouvay & Cauvin UK has introduced a new range of Subsea products, which offers customers competitiveness, flexibility and, most importantly, full compliance with current standards and specifications. Backed by European manufacturers, Eric Buchanan, Managing Director of Trouvay & Cauvin UK comments “These new supply partnerships are hugely important for T&C. The subsea market continues to grow and we need the best service and products available to us - to meet customer needs and expectations in these challenging environments”.
Manufacturing Subsea flanges, fittings and connectors are critical in subsea applications and T&C’s new range of special forged pieces have been supplied around the world with impressive references, including ENI, British Gas, Maersk, Total, E&P, Statoil, Subsea 7 and Petrobas. Extensive skills across design, manufacturing and testing are the key. The piping range of subsea components includes barred tees, forged pipes, anchor flanges, compact flanges, swivel ring flanges, hubs, test rings, J-Lay collars, clamp connectors and piggable wyes. All products can be manufactured in special materials suitable for subsea applications including ASTM A182 F51 through F55 and A694 F60 though F70 - cladded materials are also available.
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Contact TROUVAY & CAUVIN Ltd Broadgate Broadway Business Park, Chadderton Greater Manchester, OL9 9XA, U.K. Tel: +44 (0) 161 684 7488 Fax: +44 (0) 161 684 7487 E-mail: info@trouvaycauvin.com
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ENERGY INNOVATION
PROPERTY & MANAGED WORKSPACE
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RECRUITMENT: MAGNUS JEFFREY
THE NETWORK OF SUPPORT INTO THE OIL & GAS INDUSTRY With thousands of British military personnel facing redundancy and the UK oil and gas sector attempting to address a potentially crippling shortage of workers, there are opportunities for those leaving the armed forces to transfer skills and build a new career in a rewarding industry.
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ecent announcements by the UK Government have revealed that 26,000 troops over 250 career fields are, or Project engineer soon will be, eligible for redundancy. for Senergy In comparison, industry body Subsea Development UK estimates 10,000 people will be Solutions needed in its sector alone over the next 12 months. This shortfall in the oil and gas sector means there should be jobs within the reach of those who have the relevant skills and knowledge but may not possess the traditional qualifications for entering the industry. As the sector continues to move into increasingly remote regions, often troops over 250 career operating in sensitive fields are, or soon will be, eligible locations – whether for redundancy. In comparison, politically or due to Subsea UK estimates 10,000 climate – there will be few people will be needed in its people better equipped sector alone over the next to work in these areas than 12 months. those who successfully carved a career in the armed forces. Most former servicemen and women have shown through their respective army, naval or air force
Words: Magnus Jeffrey
26,000
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Most former servicemen and women have shown through their respective army, naval or air force careers that they have the ability to carry out complex tasks in what can often be extremely challenging situations. careers that they have the ability to carry out complex tasks in what can often be extremely challenging situations. Nevertheless, it is daunting for many of those leaving the forces to find a way into a new career, even if they do have the skills required. It can be difficult to know where to start for those looking to move into the oil and gas industry, particularly when the layout of things like job application forms can make it hard to put your experience down on paper. In my own case, I went to Offshore Europe 2011 in the hope of finding a job. At the time, Senergy Development Solutions (SDS) was only a few months old and looking for someone who could help organise project teams. I was lucky that the key people I needed
to speak to were on the stand that day, and I was interviewed there and then. I hadn’t heard of Senergy at the time but I was impressed that they were prepared to make a decision and offer me a job on the spot. They took a risk on me but hopefully it has been a good investment. A key part of what I do on a day to day basis at Senergy, which is a global energy services company, is managing people. In the army you gain experience working in challenging operational environments with significant responsibility. You work with very different groups of people and organisations, often under considerable pressure. This experience can be translated very effectively into working with and managing the
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RECRUITMENT: MAGNUS JEFFREY
integrated teams found in the energy industry, and clearly has a global application. It is a fantastic challenge to be able to apply these skills, and develop more, as part of the SDS and broader Senergy team. In setting up The Network Aberdeen I wanted to smooth the path for other ex-military personnel who wanted to transfer their skills into the energy industry but were not sure of the best way to make it happen. We aim to be a focal point for service leavers in the North-east of Scotland, an accessible source of service leavers for employers and an advocate of the skills, experience and dynamism service leavers can bring to civilian employment. Meetings are held every six to eight weeks and allow members to network, socialise and share experiences of employment transition and the job market. Guest industry speakers have featured at several gatherings and they are invited to talk about their experiences and views. Our first meeting was held just over a year ago and it seems to be going from strength to strength. Everyone we have approached has been happy to play their part, and the on-going support of those in the Network is fundamental to the group. Many of those former military staff, who are already in the industry, have seen it as a way of returning the help they received during their career transition. For us the important thing is getting people into the room to network. Those new to the industry don’t always know the right place to look, and we can help by introducing them to people and setting up meetings. We firmly believe in creating opportunities and training in, rather than selecting out. In addition to supporting former military staff, we are also providing an increasing level of support to those leaving other uniformed services, including the police and fire brigade. The hardest thing is definitely that initial step. A lot of people leave the
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services without relevant industry qualifications, but they often have the knowledge and skills needed, as well as broader experience garnered from operational military work. The oil and gas industry is a dynamic and exciting industry in which to work, and is in many ways similar to the military. Critically, it has job opportunities so will naturally be a focus for service leavers. However, many of these individuals struggle to get past the initial application stage.
Many of those former military staff, who are already in the industry, have seen it as a way of returning the help they received during their career transition. Their applications often fall foul of the automated systems as it is difficult to relay their appropriate skills and expertise on paper. If the same individual is able to meet with someone and given the opportunity to explain what they can offer, the outcome can be very positive for both parties. As an independent organisation we are attempting to gain charitable status and have already been successful in helping more than 10 people into work – more than one person per meeting thus far. Those hit by the recent redundancies in the armed forces may find the focus provided by such a Network even more beneficial as they react to rapid change. It can be very difficult leaving a career like the military; it is a life change rather than just changing job. Having a support group makes that process a bit easier and hopefully expedites a successful transition.
Biography Former officer Magnus Jeffrey is a project engineer for Senergy Development Solutions, a subsidiary of leading energy services company Senergy. He set up The Network Aberdeen during 2011 as a way to help other military leavers to forge a career in the oil & gas industry. For further information on The Network please email: info@thenetworkaberdeen.org Established in 2005, Senergy has a global talent pool of more than 700 people across a network of locations in the UK, Scandinavia, the Middle East, Australia, South East Asia and the Americas. The company delivers fully integrated project and asset development services across the energy industry, and has rapidly emerged as a global leader in diversified energy services through organic growth and a series of acquisitions.
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Supporting the Oil, Gas and Renewable Energy Industry Moving unusually large projects is an everyday occurrence for Cory Logistics. When you need a specialist team with integrated transport expertise to manage your outsized project, give us a call.
CORY LOGISTICS 90 Giles Street, Leith, Edinburgh, EH6 6BZ, U.K. Tel: +44 (0) 131 554 6631 Fax: +44 (0) 131 554 8504 Email: projects@corylogistics.com
WWW.CORYLOGISTICS.COM
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FEATURE:EDITION AUGUST FEATURE FORTHCOMING FEATURES & DEADLINES
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Themed issue: A four part feature on extracting oil and gas: Finding: masses of work goes into mapping the rocks below the surface and identifying the strata that hold hydrocarbons. Number crunching and computer simulation identify potential sites which can then only be confirmed by high capital outlay on test drilling. Designing the infrastructure. Having located the oil and gas, the highly technical business of designing the infrastructure to extract and deliver the fuel takes place. Decisions must be taken to find the most cost effective way to harvest the fuel and get it ashore, and of course, consents and permits must be acquired. Constructing, a specialised fleet of staff, vessels and equipment are contracted to install the infrastructure. It is a complex task involving companies across the supply chain working on to tight deadlines. Operating the daily challenge of keeping the facility operating safely and productively
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