Oil and Gas
INNOVATION®
Winter 2019
HEALTH AND SAFETY: DON’T GET CAUGHT OUT IN TIME OF CRISIS
Business Information. Industry Solutions.
TANK STORAGE: SAFER, MORE EFFICIENT, COST SAVING TANK CLEANING
STATEMENT BY IMF DIRECTOR ON GHANA
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24 — 25 September 2019 Congress Center Wiesbaden, Germany
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CONTENTS COVER STORIES & SPECIALS Don’t Get Caught Out in Times of Crisis
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Oil and Gas Innovation sits down with Swiss Fire Protection Research & Development AG to talk about their firefighting technologies. One of the main solutions they offer is the Pi Foam System, which is quite interesting as it doesn’t require a water source to be deployed.
Safer, More Efficient and Cost Saving Tank Cleaning
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Oil and Gas Innovation sits down with Søren Hansen, Chief Sales & Marketing Officer at Oreco A/S based in Vaerloese, Denmark. One of the specialties of Oreco A/S is their “No-man Entry” automated tank cleaning systems which are vastly safer than traditional tank cleaning methods. This tank cleaning system is used by majors around the world such as BP, Shell and ExxonMobil. One of the main reasons this method is used around the world is because it’s safer for a variety of reasons, of which Mr Hansen explains to us.
WORLD INDUSTRY NEWS Europe Africa North America South America Russia & CIS Asia Pacific MENA
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EXPLORATION & PRODUCTION Oil & Gas Injection Water; Filter Development Amazon Filters design and manufacture an extensive range of liquid filtration systems, providing one of the widest selections of filtration vessels, depth filters and pleated cartridges available today. As one of Europe’s leading manufacturers of filtration systems, Amazon Filters is able to offer a solution to meet all filtration requirements. Amazons’ filters are manufactured in clean room conditions and all products come with detailed Product Validation Guides and Technical Support documentation.
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/ Perfect Welding / Solar Energy / Perfect Charging
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CONTENTS 36
EXPLORATION & PRODUCTION Statement by IMF Managing Director at the Conclusion of a Visit to Ghana
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Ms. Christine Lagarde, Managing Director of the International Monetary Fund (IMF), issued the following statement today in Accra at the conclusion of her visit to Ghana: “My visit to Accra has been very fruitful and informative, and I am extremely grateful for the warm hospitality of the people of Ghana.
Tlou Energy Announces Recommencement of Drilling at the Lesedi CBM Project
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Tlou Energy Limited, the ASX, AIM and BSE listed company focused on developing gas-to-power projects in southern Africa using coal bed methane (“CBM”) natural gas from its gas field in Botswana, is pleased to announce that the Company’s operational team has recommenced Production Pod drilling at its advanced stage Lesedi CBM project.
Block Energy Reports Excellent Initial Recovery at Norio Field Block Energy Plc, the exploration and production company focused on the Republic of Georgia, is pleased to announce that, as part of a fully-funded multi-well workover programme at its 100% owned Norio field, 45 barrels of sweet crude oil were recovered during a five hour period from the first well to which a specialist enhanced perforation tool was applied. The work programme at Norio, which consists of eight workovers and one sidetrack, is targeting a 25-fold increase in production to 250 bopd by H1 2019. Norio has gross oil reserves of 1.631 million barrels
MIDSTREAM & PIPELINES
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The Art of Lifting
Harry Crones explains why Suxxesion is a leading Dutch company for the design and manufacturing of end of the line attachments. For the pipeline industry Suxxesion has developed the multi- tool to handle pipes by means of vacuum or with hydraulic spreaders. The multi tool is available to be attached to the twist-locks of container handling equipment in portal areas, knuckle boom cranes and excavators.
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COVER STORY
Don’t Get Caught Out in Times of Crisis Oil and Gas Innovation sits down with Swiss Fire Protection Research & Development AG to talk about their firefighting technologies. One of the main solutions they offer is the Pi Foam System, which is quite interesting as it doesn’t require a water source to be deployed. In stark difference to the usual firefighting methods, the foam is mixed in a calm environment (opposed to being used at the time of crisis) and therefore stored in a vessel, ready to go when needed. This is important because at the time of crisis, complex machinery can break down and thus make matters worse. The solution is not only more cost effective in the long run but is also more environmentally friendly. We delve into why the Pi Foam System can make you and your team safer.
OGI: Could you start by explaining Swiss Fire Protection Research & Development AG’s credentials and experience in terms of your products and services for the Oil and Gas sector? Could you tell our readers the breadth of your experience, how long the company has been active, and its reach? SFPRD: Swiss Fire Protection Research & Development AG is a relatively new company, it has been established in 2016, but its predecessors have been working with foam extinguishing for decades. Along with the inventor of instant foam technology, we were creating these systems mainly in Europe. During the past 3 years, SFPRD has developed the third and fourth generation of the Pressurized Instant (Pi) Foam fire suppression technology, which, compared to the previous versions, is far more efficient and economical;
and has a much more versatile use than its predecessors. SFPRD ’s mission is to develop innovative, high-performance, and cost-effective technologies for extinguishing fires at industrial facilities. The company seeks to establish higher safety standards for leading companies in the oil and gas, petrochemical and pharmaceutical industries. The expert team at SFPRD is committed to saving lives and property when disaster strikes. OGI: Can you talk a bit about your Pi Foam System? SFPRD: The main difference between traditional foam firefighting methods and the Pi Foam System is that traditional foam technologies create the firefighting performance in real-time at the time of the crisis. Thus, the foam creation and
introduction require a large capacity of water supply to produce the foam, as well as powerful pump stations to allow for adequate pressure and flow. Our Pi Foam technology differs from these in the sense that it doesn’t rely on water source and machinery in times of crisis. Pi Foam technology creates the foam premix well in advance in a calm environment which allows for serious preparation. After mixing, the foam is stored in a pressurized vessel with soluble gas and is ready to be used immediately if needed. At the time of an incident, there is no need of sophisticated machinery, which can break down in the worst moment you just have to open the valve, and the foam rushes through the pipes to the fire. As the Pi Foam System only uses the force of the stored pressure, it is not limited by the performance of the pumps and the foam generators. Due to this method, the system can reach colossal (even tenfold) foam intensity. Due to the over saturation of the soluble gas, the foam expands itself on the way without any foam generator, so you have the readymade foam in extreme quantities, which translates to very quick fire extinguish. OGI: Can you give some examples of potential disaster companies could face? SFPRD: Most of the incidents that result in a fire in a storage tank facility can be traced back to two types of causes: nature (mainly
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lightning) and human error/wrongdoing (primary causes are maintenance works and operational errors). None of these can be ruled out entirely, so there will always be fires. However, that does not mean that we can just let it go, preparation is the key to diminish the effects. As there is usually a vast quantity of dangerous products in these facilities, in case of a fire, the product loss can be enormous. Also, the damages of the infrastructure raise tremendously with every passing minute (a tank can be severely damaged after 5 minutes of burning, and most of these fires are burning for hours, sometimes for days; you can imagine what is left after that). We should not forget the loss of production time, public investigations, environmental damages, and fines. All these can have a very negative image to the company’s brand value and reputation. If you can extinguish the fire in several minutes (which is the main feature of Pi Foam System) you can prevent or significantly decrease the damages above. So, if you cannot avoid catastrophes, you can at least prevent escalation and reduce their detrimental impact. OGI: How real are the security threats faced by hydrocarbon storage facilities?
Everything depends on your preparation. In case of a storage tank fire, the tools available to traditional firefighters cannot even approximate the intensity needed to extinguish the fire successfully. So, if we do not prepare with the appropriate equipment or methods before the incident, there is no chance of collecting them in time, before the disaster causes significant damage both in property and in the public image of the company. Therefore, in today’s world, I think that careful and thorough preparation is essential, as the publics safety and environmental expectations are growing in addition to security and material considerations. OGI: In today’s world, it’s paramount to be conscious of the environmental effects of one’s operations, even when we are talking about a fire safety operation. What are some of the steps a fire fighting company can take, to take this into account? SFPRD: When we are talking about extinguishing fire with foam, there are two types of pollution, primarily related. The first, and undoubtedly more spectacular is the black smoke cloud rising into the sky, which provides a horrific sight at burning hydrocarbons. The measurements show that even after the most significant disasters, air quality returns to its average level after two or three weeks, so this is not so dangerous in the long run. Another problem is the issue of foam
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Our Pi Foam technology differs from these in the sense that it doesn’t rely on water source and machinery in times of crisis.
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SFPRD: It may seem by the statistics that these accidents are relatively rare, but not so much that we don’t have to deal with them: There is news about a major fire almost every month or so. I don’t like to scare with incidents, but there are more and more security risks and extreme weather phenomena around the globe, so we have to be prepared to face and conquer the challenges that arise from these.
ingredients: fluorinated hydrocarbons are used as the main component of foam concentrates, which are severely toxic, carcinogenic. In recent decades, tons of these have got into the soil and then into drinking water bases, which can cause much more severe and longer-term problems than air pollution. Restoring these is often a bigger task than putting out the fire. In recent years, fluorine-free foams have been appearing on the market, but there are still significant amounts of fluorinated foams out there. The Pi Foam system is highly advanced in fighting both polluting aspects: because of its extreme intensity and the consequent rapid fire extinguish, less smoke is released. While the fluorine-free foam we developed is biodegradable, not toxic, and has no harmful effect on the environment or the human body. OGI: Finally, could you enlighten our readers of a case study where you helped a client with your solutions? SFPRD: We were involved in many instant foam projects over the past couple of years.
Besides the intriguing projects in the oil and gas industry, these include projects for pharmaceutical and manufacturing companies, power plants, but we have also been installing systems for the kerosene reserves of fighter jets on a military base. Lots of exciting jobs. Perhaps the most interesting project is the one which is under construction in Kuwait, where we needed to protect a storage facility of 10 crude storage tanks. By the client’s requirements, the system can extinguish the simultaneous, full-surface fires of the 3 biggest tanks, while the other seven tanks have a simultaneous rim-seal fire. Of course, this is only a theoretical scenario, but if we take these surfaces as a single tank, this would mean a full-surface fire extinguishing of a 126m diameter storage tank. So, this will be one of the world’s largest capacity foam extinguishing systems when it is finished. OGI: Thank you for your time. • If you’d like to know more about the topics discussed in this article, and/or would like to know how Swiss Fire Protection Research & Development AG can help your operations, please contact us: Web: https://sfprd.com Tel: +41 41 6624574 E-mail: info@sfprd.com
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COVER STORY
Safer, More Efficient and Cost Saving Tank Cleaning Oil and Gas Innovation sits down with Søren Hansen, Chief Sales & Marketing Officer at Oreco A/S based in Vaerloese, Denmark. One of the specialties of Oreco A/S is their “No-man Entry” automated tank cleaning systems which are vastly safer than traditional tank cleaning methods. This tank cleaning system is used by majors around the world such as BP, Shell and ExxonMobil. One of the main reasons this method is used around the world is because it’s safer for a variety of reasons, of which Mr Hansen explains to us. A no-man entry system is a combination of different process systems and OGI seeks to know more about how all this works. Considering all this and with the added benefit of oil recovery and recycling, this tank cleaning method can end up saving you money. OGI: Could you start by explaining Oreco’s credentials and experience in terms of your products and services for the Oil and Gas sector? Could you tell our readers the breadth of your experience, how long the company has been active, and its reach Hansen: The origin of Oreco dates to 1957, making Oreco one of, if not the one, the oldest tank cleaning systems suppliers. Over the years, Oreco has developed automated tank cleaning systems for almost every possible scenario which are available worldwide from Japan to the USA and from Australia to Canada. Consequently, we have encountered a large range of oils, scenarios and tanks which is in addition to the various national and international rules and regulations that must be observed in order to ensure safe, reliable, predictable and efficient no-man entry automated tank cleaning operations. Oreco´s tank cleaning systems have been applied by most of the global oil and gas companies, such as BP, Shell, Exxon Mobile etc. As we speak, more than 1,000 large diameter black oil tanks have been cleaned using Oreco tank cleaning systems. Quality, safety and environmental protection are key elements in the development and production of Oreco´s tank cleaning systems. Oreco holds several certificates of approval
from recognized international institutes and government bodies. These cover Oreco cleaning processes and Oreco’s management system as well as our sub-contractors, their products and their production methods. OGI: What are some of the dangers associated with man-entry tank cleaning procedures? Hansen: When conducting manual tank cleaning, personnel risk being exposed to hazardous chemicals including Lead antiknock compounds, Hydrogen Sulphide, Polycyclic Aromatic Hydrocarbons (PAH) and Benzene. One must also be aware of toxic dusts from lagging, paint systems, grit blasting etc. Personnel entering a tank will be also exposed to several physical hazards (climatic conditions, tripping/obstruction hazards etc.) particular to the location and physical design of the tank. Naturally occurring radioactive material (NORM) or low specific activity (LSA) scale can be detected in certain crude oil, ballast and slop systems. The radioactivity originates in the formation water at the well and results in radioactive scale in pipelines, which can be carried through to storage. Where water is present in tank bottoms and sludge, microbial proliferation is not
Søren Hansen, Chief Sales & Marketing Officer at Oreco A/S
uncommon. In severe cases, infection or allergic reaction can result. Regarding manual tank cleaning practices, it is obvious that despite the level of protection a human has at his disposal, the mere act of having to enter and perform cleaning activities inside an oil tank poses a high risk. This is due to the likelihood of human error or failure of safety devices. According to international institutes 80% of all accidents occur due to human error. Manual tank cleaning and removal of sludge is a tedious and dangerous process, which inevitably increases risks both to personnel and assets. In short, every single time personnel enters an oil tank they place their health in the line of fire, and significantly increase the potential risks of accidents. An alarming fact is that in many cases, manual cleaning makes use of personnel with the lowest level of qualifications. This applies not only in terms of knowledge of tank operation and maintenance, but also for safety procedures. This maximizes risk due to ignorant or irresponsible behavior of workers on-site. Risk of incidents to personnel, hereunder risks of fatal incident to personnel, is not the only risk. The potential risk to the tank owner assets and the possible impact on the tank owners or oil company´s reputation or business can be tremendously high; e.g. in the catastrophic event of a tank explosion.
A view of a MoClean®-ATS in operation.
OGI: Tank owners and oil companies need to clean their tank for different purposes. What are they?
A view inside a Oreco Separation Module.
Hansen: Internal Inspections: When it is time for an internal inspection, the tank must be taken out of service, cleaned and prepared for an inspector to enter the storage tank. Changing Products: If the plan is to store a different product in the tank, a full tank cleaning might be necessary. If they are switching from an unrefined product to a refined product, like from crude oil to gasoline, they would need to remove all residue and impurities. Tank Issues: If the tank has a mechanical failure, they will likely won’t be able to repair it in service. Depending on the problem, they would need to empty the tank, clean it and make it gas free before they are able to make the necessary repairs. Typically, the ultimate goal of a tank cleaning is to provide a safe environment for whoever is entering the storage tank, whether it is an inspector or a mechanical repair company. An automated tank cleaning system is an integrated process system, mobile and modular and designed to clean either white or black oil tanks – whether simply needing efficient tank cleaning or require tank cleaning, sludge separation and oil recovery in one integrated process. Compared to manual cleaning techniques, the automated process system cleans tanks much more safely and quickly. A distinctive feature of the automated system is its closed loop cleaning system, which heavily reduces the impact of tank cleaning on the environment and provides typically 95-97% hydrocarbon recovery of the hydrocarbons entrapped in the sludge. The automated tank cleaning system is installed according to a mobilization plan approved by the tank owner. The mobilization process involves the installation of different process modules, build into 20- foot containers (the Suction, Recirculation, Skimming and Separation modules). An important part of the automated tank cleaning system are the cleaning spray nozzles used to clean the tank. They are typically installed in the tank roof, either through special cold-tapped holes, using a special approved tool (Cold-Tapping Tool) or via existing Roof Leg Holes or even through the man-holes, typically located on the side of the tank. The nozzles are key to ensuring an optimal cleaning result. Their unique indexed and programmable washing pattern fully covers the complete surface of the tank. The nozzles use recirculated oil as their primary cleaning media and their efficiency is due to their far-reaching, low pressure high impact jets. The nozzles are hydraulically driven and two nozzles at a time can be operated. Various auxiliary equipment (e.g. Nitrogen Generator to inert the tank with gas and Power Generator to power the system) is set up in accordance with prevailing regulations regarding potentially hazardous zones (Zone 0, Zone 1, Zone 2, Safe Zone), to meet the highest international safety standards and directives
when working in potentially hazardous environments. To secure a safe tank cleaning process an inert gas, typically nitrogen, is injected into the tank. The purpose is to reduce the oxygen level to below 8 per cent to eliminate the risk of explosion. This oxygen level is held under the entire cleaning process. Desludging is the first process in the cleaning of the tank, and this is where most of the oily sludge from the tank is removed. The desludging process may begin when the oxygen level has fallen below 8 per cent. Since the sludge may contain solids, water and trapped, un-liquefied oil it may be necessary to add cutter stock (typically fresh crude on a crude oil tank) to re-liquefy the sludge. Via a PLC in the recirculation module the nozzles can be programmed to focus on areas that require more intensive desludging. The no-man entry concept of the automated tank cleaning system means that personnel do not enter the tank during cleaning. The system is easily operated and monitored by a few trained operators via built-in PLCs and userfriendly control panels. After the desludging process, the tank may receive an oil wash (in case of risk of emulsification), prior to a final hot water wash. At this stage there is no sludge left in the tank. To clean the tank completely the final hot water wash is necessary, and this
is where the skimming module comes into action. The nozzles spray fresh water, which is re-circulated in the process, into the tank and hereafter the water is pumped through the skimming module where coalescing plates perform the oil/water separation. The oil is skimmed off the water surface and pumped back to the tank owner as recovered oil, and the water is pumped directly to local waste water treatment facilities or treated as per oil company requirements. The separation module enables tank owners to achieve specific separation requirements. Separation takes place simultaneously with desludging and the sludge is separated into clean oil, solids and water. Different types of separation systems can be supplied (Decanter, Decanter+ High Speed Separator or ThreePhased Decanter) depending on the specific separation requirements. The clean oil is typically pumped back to a client tank and the solids are separated into containers for further disposal. Finally, demobilization of the tank cleaning system takes place. As soon as the tank atmosphere has been approved by a safety officer, personnel are free to enter. Equipment, piping and cabling are disconnected, demounted, cleaned, packed and loaded onto trucks for easy transportation off site. OGI: Could you speak about your different products which you offer such as BLABO®, MoClean®, MoClean®-ATS and SLOPO® and Nitrogen Generators?
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Hansen: A no-man entry automated tank cleaning system is a combination of individual process modules with different functionalities which are integrated to form a complete system. The ability to choose a design for each of the individual process modules, means that the that the operator will have a highly versatile and flexible tank cleaning system, while achieving compliance with specific safety requirements and an ability to operate the tank cleaning system under various scenarios. It remains one of the strongest trademarks of Oreco, to supply systems tailored both to client needs, but also complying with different legislation throughout the world.
A view of BLABO® modules mobilized on-site.
Oreco is the technology leader in automated tank cleaning systems. As the only supplier of no-man entry tank cleaning technology, the company has been referenced in the Best Available Techniques (BAT) Reference Document for the Refining of Mineral Oil and Gas Industrial Emissions Directive 2010/75/EU (Integrated Pollution Prevention and Control). The company offers different main tank cleaning solutions, and several supporting technologies, under the following brands: BLABO®, MoClean®, MoClean®-ATS and SLOPO®. Furthermore, Oreco also supplies Nitrogen Generators. With its range of solutions and supporting technologies, clients can choose a solution covering either white oil tanks (MoClean®), black oil tanks (BLABO®) or even both white and black oil tanks (MoClean®-ATS). The tank cleaning systems can be used for a wide range of tank types (e.g. fixed roof, internal and external floating roof, single and double deck roofs). Also, the chosen solution can be integrated with a separation solution (SLOPO®) if required. OGI: Oil waste can be quite an expensive problem for a company, which in many cases does not need to be so. Can you explain the benefits of oil waste recovery and how Oreco helps companies with this? Hansen: Companies producing oil waste are increasingly liable to implement sustainable solutions to both minimize production of oil waste, but also to increase recycling levels as well as reducing volumes of oil wastes for disposal or even further treatment. Historically there are multiple examples of major volumes of
oil waste stored long-term without having paid duly attention to the minimization of oil waste volumes or even considering solutions to treat the oil waste. Fact is, that millions of tons of untreated oil waste are stored in various places around the world. Oil waste owners are facing an increasingly growing liability which is not disappearing, therefore they are likely to be facing increasingly growing liability which is not disappearing. increasing requirements on how the waste shall be treated and finally disposed of. All of this will most likely mean increasing costs to the oil waste owner. Oreco´s separation solutions can be used either together with Oreco´s automated tank
cleaning systems, or as stand-alone systems. The stand-alone systems may be used either stationary or as mobile systems used on location where the oil wastes are located. When the separation systems are used together with the automated tank cleaning systems, they are typically used to recycle hydrocarbons from the oil sludge and to separate the solids and water fractions. The water fraction is typically sent to further a water treatment facility and the disposal of solids or further treatment of solids depends e.g. on local regulations. Typically, it is possible to recycle 95-97% of the hydrocarbons available in the sludge. The tank owner thereby not only benefits from a high degree of recycling of hydrocarbons, he also reduces the volume of waste for either further treatment or disposal. When Oreco´s solutions are used to clean oil waste, typically stored in pits, the origin of the oil waste can be many different sources, hereunder oil waste derived from lack of separation during tank cleaning and maybe a consequence of having used manual tank cleaning techniques. OGI: What is the Oreco Partner Network / The Partner Program and what purpose does it serve for the industry? Hansen: Oreco’s Partner Program is a worldwide network of Oreco partners and service providers. The tank cleaning and oil recovery industries are highly competitive –
A view of a MoClean®-ATS in operation.
on both a local and global scale. So, staying ahead of the competition is a key factor for success.
A view of a MoClean®-ATS in operation .
Oreco’s Partner Program has been designed to give both new and established partners the best possible business advantage. The program is the assurance that Oreco technology is capable of operating in different situations across the world, for any tank cleaning and oil recovery assignment. And it ensures that Oreco technology performs to the same high standards following the tried and well-proven ‘Oreco method’. Companies automatically become enrolled in Oreco’s Partner Program when they become an Oreco customer. Whether you are a tank cleaning or oil recovery service provider, you get on-going support, access to the wealth of Oreco’s knowledge and benefit from the experience of other Oreco customers. Even being well established with Oreco systems, the program helps the service provider to stay informed about the latest technological developments and provides expert marketing and sales assistance.
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In short, every single time personnel enters an oil tank they place their health in the line of fire, and significantly increase the potential risks of accidents. An alarming fact is that in many cases, manual cleaning makes use of personnel with the lowest level of qualifications.
OGI: : Tanks in the Canadian oil sands are quite difficult to clean. This is because of the heavy oil which is produced in the region. Could you talk a bit about that, and how Oreco’s solutions could potentially help in these difficult environments? Hansen: Oreco´s tank cleaning technologies have cleaned tanks in most regions of the world, including Canada. Please refer to the case study ahead, where a tank cleaning case from Canada is described. In order to successfully execute tank cleaning jobs, proper pre-job planning is mandatory. In simple words you can say that you have a suitable highly versatile tool, the automated tank cleaning system, but you need to plan properly how to apply the tool in each situation. Important parameters to be accounted for as part of the pre-job planning process are e.g., but not limited to:
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Type and amount of oil, sludge, solids, water.
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Size and type of tank.
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Special conditions, such as submersed ”floating roof ”, broken drain.
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Customers specification for recovered oil (BS&W).
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Special weather condition (heat, cold, lightning etc.).
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How and where to get rid of water and solids.
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Type and condition of tank seal.
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Availability of fresh water for hot water wash (amount, waiting time and/or pump rate).
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Suction point conditions (sump, cone up, cone down, suction pipe, water drain etc.).
After analyzing and considering the specific conditions regarding the tank to be cleaned, the tank cleaning job can be executed. Using automated tank cleaning systems means the user will be able to circulate fluid through the process, use a wide range of chemistry and use different viscosities, densities and temperatures of fluid. Thus, altering the chemistry of the fluid to suit the type of product which is cleaned or the type of solids that remain in the tank. Having that flexibility to choose the cleaning fluid, increases the efficiency and quality of the cleaning. The major benefit for a tank operator is obviously having the tank in operation faster avoiding investment in further storage capacity. OGI: Finally, could you enlighten our readers of a case study where you helped a client with your solutions? Hansen: When the Canadian company Orion Tank Solutions (OTS) needed a new tank cleaning system to clean tanks for the Canadian oil industry they turned to Oreco, being the market leader of automated tank cleaning systems. The tank cleaning system provided by Oreco significantly reduced any safety related risk taken on by the company in their tank cleaning operation, which corresponded to more than 200 hours per day of confined space entry. It also presented a robust tank cleaning system that can clean tanks in a consistent, safe, and cost-effective under difficult conditions in
Canada. Before OTS started the automated tank cleaning operation, all they had experienced previously in Canada were manually cleaned tanks that were cleaned by crews of contractor personnel. Traditionally, the tank cleaning would involve around 20 to 30 people entering a storage and/or refining tank to clean it manually. This would involve shovels, buckets, and water cannons being used in an environment which required breathing apparatuses. Personnel were not able to spend long periods of time in a tank because of its hazardous environment. There was a high level of exposure and human health risk to both the tank owner and the crew cleaning the tank. OTS´s approach to the business is a desire to minimize that risk. While they still have some risks in terms of confined spaces and exposure to a dangerous environment, they have been able to eliminate more than 90% of dangerous entry into the tank with Oreco´s automated no-man entry system. An operator at work with Oreco´s automated no-man entry tank cleaning system OTS has been able to take a 30-man operation and reduced it down to 6 people. Diverting waste from landfill is not the only challenge the system has tackled. Tanks from the Canadian oil sands sector are very difficult to clean. The oil produced in Canada is heavy oil and contains very large amounts of asphaltenes and BS&W (Bottom Solid & Water). Often described as a very sticky, heavy product. Therefore, since introducing this technology to Canada, the Oreco automated tank cleaning system has allowed OTS to reduce work related personnel risk by up to 90% in terms of injuries and exposure to hazardous waste resulting in several successful tank cleanings without any health and safety incidents. OGI: Thank you for your time • If you’d like to know more about the topics discussed in this article, and/or would like to know how Oreco A/S can help your operations, please contact us: Web: www.oreco.com Tel: +45 4332 0200 E-mail: info@oreco.com
NEWS - EUROPE Total’s R&D Department in Heart of Paris-Saclay Cluster from 2019
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uring his visit to the Ecole polytechnique cluster at Paris-Saclay to inaugurate the Ile-de-France Photovoltaic Institute (IPVF) and sign the Trend-X chair, Patrick Pouyanné, Chairman & Chief Executive Officer of Total, announced the planned opening of a new research & innovation centre in the heart of Ecole Polytechnique cluster at Saclay. In 2019, the management team of Total’s R&D department will move to Saclay before the new centre is officially opened by 2022. This new centre is a major project for Total, that puts the Group at the heart of a global innovation ecosystem. Eventually, Saclay will be home to 20-25% of the French scientific research community. The centre will also add to Total’s investments in research and innovation in France. Already the Group has 1,400 researchers under its wing in seven centres as well as 1,000 agreements with academic partners worldwide. Thanks to the proximity to the Saclay ecosystem, the Group will be able to strengthen its open innovation initiative, and its partnerships with internationally recognized research teams. The new Total Research & Innovation Centre will tackle the main energy and technological challenges of our society. Two areas of work are prioritized: digital, especially Artificial Intelligence (AI), and low-carbon power management, in pursuit of sustainable and responsible development. Total took the opportunity of this announcement to realize its commitment to work alongside several key organizations of the cluster on two new initiatives in renewable energy and energy efficiency: A partnership with École Polytechnique to develop technology related to low-carbon energies. Total will fund a chair at École Polytechnique called “Meeting the technological challenges of responsible energy” as part of the Trend-X initiative. The chair will assist research on capturing and storing solar power as well as the development of smart building energy management, and integrate such work into university courses. The Ile-de-France Photovoltaic Institute (IPVF) to speed up the development of solar power. Total has joined forces with a number of partners (EDF, the CNRS, École Polytechnique, Air Liquide, Horiba and Riber) to give life to this new centre of excellence dedicated to research on solar power and its integration into power grids. “The proposed creation of a new research and innovation centre in the Paris-Saclay cluster is major for Total. Our capacity for innovation is at the heart of our ambition to become the responsible energy major. This Centre places us among one of the best global research ecosystem and will strengthens our ties with the top-tier research teams already present at Saclay” Stated Patrick Pouyanné, Chairman and Chief Executive Officer of Total. “We are keen to contribute to the global reach of this cluster, and to anticipate the technological disruptions that will shape the future of energy. This process is henceforth well under way with the inauguration of the IPVF and the creation of the Trend-X chair.” •
Wood Wins $66 Million Framework Contract
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ood has won a contract to supply programmable digital control technologies to the Sellafield nuclear site in Cumbria, UK.
The 10-year framework, worth $66 million, covers all stages of system design, manufacture and assembly of equipment, obsolescence management and maintenance support to project work and decommissioning carried out by Sellafield Ltd. The contract will help Sellafield Ltd and its wider supply chain to deliver safe, sustainable and cost-effective solutions to full lifecycle controls integration supply at the site. It was secured by a joint approach from nuclear and automation and controls specialists within Wood, augmenting best-in-class experience from the automotive and oil & gas sectors with nuclear competence, stakeholder relations and site-specific knowledge. Bob MacDonald, CEO of Wood Specialist Technical Solutions, said: “We are looking forward to working with Sellafield Ltd and demonstrating the strength and depth of controls integration expertise across the whole of Wood, bringing together our nuclear expertise with our automation and controls capability. “Securing this important framework is proof of the rationale for acquiring Amec Foster Wheeler 12 months ago and a good revenue synergy. We could not have won this contract as separate businesses. “Our aim is to provide Sellafield Ltd with long-term supply chain capability and capacity, implementing standardised solutions, building innovation into design and delivery, managing obsolescence, and reducing lifecycle costs.” •
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EUROPE - NEWS Wentworth to Relinquish Tembo Block Appraisal Licence
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entworth, the Oslo Stock Exchange (OSE: WEN) and AIM (AIM: WEN) announced that further to its announcement dated 3 October 2018, it intends to relinquish the Tembo block with a planned effective date of 30 April 2019 ahead of the end of the current appraisal term on 15 June 2019. The Company will also exit Mozambique, closing its Maputo office and shutting down activities in the Muxara and Palma camps concurrently, in order to focus on its core Mnazi Bay asset in Tanzania and its M&A led growth mandate. The Tembo Block, which has an area of approximately 2,500 km2 is in northeastern Mozambique, approximately 2,598 km north of Maputo and 120 km southwest of the Mnazi Bay field, in the onshore Rovuma Basin. The block is operated by Wentworth Resources (85%) with Empresa Nacional de Hidrocarbonetos (“ENH”; 15%) as a partner. The relinquishment of the Tembo block will release the Company from any further appraisal work programme obligations with no material costs foreseen ahead of relinquishment. It is anticipated that the Company’s Intangible Assets which are attributable to the Tembo appraisal licence will be written down in full in the current financial year 2018. Eskil Jersing, CEO, commented: “We have now completed a thorough technical and commercial review of the company’s asset portfolio and determined that our Tembo asset does not provide us with suitable monetisation solutions in keeping with our material growth mandate. We have appreciated the excellent relationships to date with ENH, the National Oil Company of Mozambique, and INP, the National Regulator, and will work hard to ensure an efficient and smooth transition period for all stakeholders. Our work both to maximise the potential of Mnazi Bay and to identify M&A opportunities to add material value continues apace and we look forward to updating shareholders on our progress in due course.” •
CNOOC Signs Agreements with 9 International Oil Companies
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NOOC Limited (the “Company”, SEHK: 00883, NYSE: CEO, TSX: CNU) announced today that its parent company, China National Offshore Oil Corporation (CNOOC), has signed Strategic Cooperation Agreements with 9 international oil companies including: Chevron, ConocoPhillips, Equinor, Husky, KUFPEC, Roc Oil, Shell, SK Innovation and TOTAL (in alphabetical order). According to the agreements, the Strategic Cooperation Areas are located in the Pearl River Mouth Basin offshore China, including Area A and Area B (existing mining license areas and the contract areas are not included). Area A is approximately 15,300 square kilometers, with a water depth of 80-120 meters and only open for the deep layers below Enping Formation of Paleogene. Area B is approximately 48,700 square kilometers, with a water depth of 500-3,000 meters and open for all the layers. The agreements will facilitate the establishment of a long term and stable cooperation and share the development opportunities to a certain extent in the Strategic Cooperation Areas, creating conditions for the final signing of contracts. CNOOC Limited, as an independent oil and gas exploration and production company, is the only vehicle through which CNOOC engages in exploration, development, production and sale of crude oil and natural gas. •
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Eland Oil & Gas Completes Drilling Phase of the Gbetiokun-3 Appraisal/Development Well
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land Oil & Gas PLC, an oil & gas production and development company operating in West Africa with an initial focus on Nigeria, is delighted to announce that through its joint-venture subsidiary, Elcrest Exploration and Production Nigeria Ltd (“Elcrest”), it has completed drilling phase of the Gbetiokun-3 appraisal/development well.
has successfully completed the drilling of the Gbetiokun-3 well. Gbetiokun has the potential to deliver a significant increase in oil production from OML 40 and we look forward to updating shareholders on flow testing later this quarter.” •
The OES Teamwork Rig has successfully completed drilling the Gbetiokun-3 well as part of the initial phase of the field development. The well encountered oil-bearing reservoirs across multiple horizons and will be completed as a dual producer on the D9000 and E4000 reservoirs, which have total net pay thicknesses of approximately 46 feet and 44 feet true vertical depth (“TVD”) respectively. The secondary target reservoir, E7000, was encountered slightly deeper than expected and consequently the decision has been taken to complete this well on the E4000 reservoir. The E7000 is currently being reassessed with a view to being targeted by future wells. Downhole samples collected from the D5000 established that the shallow reservoir oil is mobile and pressure volume temperature (“PVT”) analysis will be performed on the sample to confirm the D5000 can be developed commercially. Completion of the Gbetiokun-3 well is expected in January. Production testing of the Gbetiokun-1 and Gbetiokun-3 wells will be conducted using an early production system (“EPS”) with initial estimated gross combined production at approximately 15,000 barrels of oil per day (“bopd”) (6,750 bopd net to Elcrest). Start-up of the EPS is expected to be Q1 2019. George Maxwell, CEO of Eland, commented: “Further to our announcement on 24 December 2018, the Company
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AFRICA - NEWS Africa Oil Announces Additional Investment in Impact Oil and Gas
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frica Oil Corp. (TSX: AOI) (OMX: AOI) (“Africa Oil”, “AOC” or the “Company”) announced that it has made further investments of US$20.5 million in Impact Oil and Gas Limited (“Impact”), a private UK company with exploration assets in South and West Africa. Additional Investment in Impact Oil and Gas The Company has entered into a subscription agreement (the “Subscription Agreement”) with Impact providing for the exercise by AOC of the 50,343,961 ordinary share purchase warrants in Impact held by AOC at an exercise price of £0.18 per warrant and the purchase by AOC of ordinary shares of Impact in an aggregate amount of US$6.3 million. Additionally, AOC completed the previously announced acquisition of additional shares and warrants in Impact for an aggregate subscription price of US$2.5 million in November 2018 which, combining with the current investment, will result in Africa Oil holding an approximately 30% interest in Impact. The funds provided by AOC to Impact are to be used by Impact as a loan to Arostyle Investments (Proprietary) Limited to allow Main Street 1549 Proprietary Limited (“Main Street”) to acquire a 5.1% effective interest in Block 11B/12B offshore South Africa. Block 11B/12B is located in the Outeniqua Basin approximately 175 kilometers off the southern coast of South Africa. The block covers an area of 18,734 square kilometers with water depths ranging from 200 to 2,000 meters. The Brulpadda-1AX re-entry well is expected to commence drilling before the end of this year. The partners in the 11B/12B block are Total S.A. (45%), Canadian Natural Resources Limited (20%), Qatar Petroleum (25%) and Main Street (10%). Africa Energy Corp. holds a 49% interest in Main Street and Africa Oil holds an approximately 34.6% interest in Africa Energy Corp. Africa Oil CEO Keith Hill commented, “We are very pleased to have significant investments in two companies that have invested in Main Street, which has a material interest in the upcoming Brulpadda well. We believe the Brulpadda well to be one of the top exploration wells to be drilled in the world in 2019. The well will be operated by TOTAL, which gives us confidence that not only can the well can be drilled safely and effectively, but that the necessary technical and financial resources will be in place to move forward on any resulting discovery.”. The transactions contemplated by the Subscription Agreement are subject to certain customary conditions to closing, including shareholder approval of Impact. •
Executive Board Decision Brings Total IMF Disbursements to Gabon to About Us$395.9 Million.
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he government’s reform program, supported by the IMF, aims to restore macroeconomic stability and lay the foundation for inclusive growth. On December 19, 2018, the Executive Board of the International Monetary Fund (IMF) completed the third review of Gabon’s economic program supported by an extended arrangement under the Extended Fund Facility [1] . Completion of the review enables the immediate disbursement of SDR 71.43 million (about US$99 million). This brings total disbursements under the arrangement so far to SDR 285.72 million (about US$395.9 million). In completing the third review, the Executive Board approved the authorities’ requests for waivers of nonobservance of a performance criterion and modification of performance criteria. Gabon’s three-year, SDR 464.4 million extended arrangement (about US$ 642 million at the time of approval), the equivalent of 215 percent of Gabon’s quota, was approved by the Executive Board on June 19, 2017 (see Press Release No. 17/233 ). The government’s reform program, supported by the IMF, aims to restore macroeconomic stability and lay the foundation for inclusive growth. It also seeks to attain debt sustainability at the national level and contribute to the external stability of the Central African Economic and Monetary Union (CEMAC). Following the Executive Board discussion, Mr. Mitsuhiro Furusawa, Deputy Managing Director and Acting Chair, made the following statement: “Gabon’s performance under the EFF arrangement has improved. The authorities have taken important and difficult actions to keep the program on track despite the October 2018 legislative elections. However, the economic recovery remains fragile and further fiscal consolidation and decisive reforms are needed to achieve strong and sustainable growth. “The authorities are committed to continuing with growth- friendly fiscal consolidation. This requires steadfast implementation of measures to boost non-oil revenues and contain non-priority spending, while protecting social and investment spending. Enhancing budgetary execution and oil revenue management, and further improving cash and debt management are also priorities. “Safeguarding banking sector stability is essential for growth. The authorities plan to accelerate the liquidation of the three distressed banks and expeditiously tackle the NPL overhang to support financial stability, promote credit to the private sector, and growth. “Gabon’s program continues to be supported by the implementation of supportive policies and reforms by the regional institutions in the areas of foreign exchange regulations and monetary policy framework and to support an increase in regional net foreign assets, which are critical to the program’s success.” The Extended Fund Facility (EFF) was established to provide assistance to countries: (i) experiencing serious payments imbalances because of structural impediments; or (ii) characterized by slow growth and an inherently weak balance of payments position. It provides assistance in support of comprehensive programs that include policies of the scope and character required to correct structural imbalances over an extended period. •
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ADNOC awards for Eni and PTTEP Consortium
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irst blocks to be awarded as part of Abu Dhabi’s competitive open block licensing strategy to accelerate exploration and unlock value from its substantial hydrocarbon resources The Abu Dhabi National Oil Company (ADNOC) announced, today, the signing of two historic agreements, awarding two offshore blocks to a consortium led by Italy’s multinational energy company, Eni, and Thailand’s PTT Exploration and Production Public Company Limited (PTTEP), following a competitive bid round. The two blocks in the northwest of Abu Dhabi – Offshore 1 and Offshore 2 – are the first blocks to be awarded among the geographical areas that were offered for commercial bidding by ADNOC, in April 2018, as part of Abu Dhabi’s first competitive open block licensing strategy. The award of the two blocks was endorsed by Abu Dhabi’s Supreme Petroleum Council (SPC). Under the terms of the agreements, Eni will operate the concessions and PTTEP and Eni will both hold a 100 percent stake in the exploration phase, investing at least AED 844 million (US $230 million) to explore for oil and gas, and appraise the existing discoveries in Offshore Block 2. At the same time, the exploration and appraisal plans for the Offshore Block 1 will be finalized. The two blocks cover a combined area of approximately 8,000 square kilometers. Upon successful exploration – and having established the commerciality of the discovered resources – Eni and PTTEP will, together, be granted the opportunity to develop and produce any discoveries, with ADNOC retaining the option to hold a 60 percent stake in the production phase. The concession agreements were signed by His Excellency Dr. Sultan
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Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO; Claudio Descalzi, CEO of Eni; and Phongsthorn Thavisin, President and Chief Executive Officer of PTTEP. The awards follow the SPC’s approval of ADNOC’s new integrated gas strategy and the company’s plans to increase its oil production capacity to 5 million barrels per day (mmbpd) by 2030. The strategy is designed to unlock and maximize value from Abu Dhabi’s substantial oil and gas reserves and enable the UAE to achieve gas self-sufficiency and potentially transition to a net gas exporter. Descalzi said: “This award represents a new important step towards Eni’s expansion in one of the world’s leading regions for the oil and gas industry, not only by participating in producing fields, but also by exploring new blocks. In particular, Block 1 and 2 are extremely important, thanks to the virtuous synergies they will have with Ghasha concession projects. This further reinforces the partnership between Eni and ADNOC, and Eni will make available its exploration expertise and leading-edge technology to untap additional resources in the offshore of Abu Dhabi.” Thavisin said: “We are excited and enthusiastic to establish our firstever presence in the UAE by investing in Offshore 1 and Offshore 2 blocks. This achievement opens windows of opportunity for us to collaborate with world-class oil and gas companies – ADNOC and Eni – and to invest in one of the world’s prolific areas of oil and gas resources. We believe the consortium will bring capabilities, experience and technology to develop these exploration blocks and that the partnership will create long-term value for all involved parties.” •
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AFRICA - NEWS Rovuma LNG Project, Mozambique
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rea 4 co-venture participants have secured liquefied natural gas (LNG) offtake commitments from affiliated buyer entities of the partners, a key milestone enabling the participants to rapidly move toward a final investment decision in 2019 on the first phase of the Rovuma LNG project. Area 4 participants are ExxonMobil, Eni, the China National Petroleum Corporation, Empresa Nacional de Hidrocarbonetos, Kogas and Galp. Those commitments are subject to the conclusion of fully-termed agreements, which will be finalized and initialed in the next weeks, and the approval of the Government of Mozambique. “The Rovuma LNG marketing team has worked at an accelerated pace to reach this important milestone, a tremendous achievement made possible by the strength of the Area 4 co-venture parties and the support of the Government of Mozambique,” said Peter Clarke, president of ExxonMobil Gas and Power Marketing Company. Massimo Mantovani, Eni chief gas and LNG marketing and power officer, said: “these commitments are an important step forward for the Rovuma LNG project and provide a solid foundation for securing project financing. This achievement highlights the strength of our partnership and commitment to developing Mozambique’s natural resources.” In July 2018, Mozambique Rovuma Venture submitted the development plan to the Government of Mozambique for the first phase of the Rovuma LNG project, which will produce, liquefy and market natural gas from the Mamba fields located in the Area 4 block offshore the Rovuma Basin in Mozambique. ExxonMobil will lead construction and operation of natural gas liquefaction and related facilities on behalf of the Area 4 joint venture, while Eni will lead the construction and operation of the upstream facilities. The development plan for the first phase of the Rovuma LNG project specifies the proposed design and construction of two liquefied natural gas trains, which will each produce 7.6 million tons of LNG per year. Mozambique Rovuma Venture is currently holding productive discussions with the Mozambican Government on development plan details. In addition to generating government revenues, the proposed Rovuma LNG project will support long-term economic growth in Mozambique by developing the local workforce, building the capabilities of and demand for suppliers, and assisting with community development efforts. Mozambique Rovuma Venture S.p.A., an incorporated joint venture owned by ExxonMobil, Eni and CNPC, holds a 70 percent participation interest in the Area 4 exploration and production concession contract (EPCC), alongside Empresa Nacional de Hidrocarbonetos, Galp and Kogas, each of which holds a 10 percent interest. •
NNPC Records Trading Surplus of $9.85billion
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he Nigerian National Petroleum Corporation (NNPC) has announced a trading surplus of ₦9.85billion for the month of September 2018, a figure which is higher than the previous month’s deficit of ₦3.90 billion. Details of the report which is contained in the newly released September 2018 edition of the NNPC Monthly Financial and Operations Report indicated that the improved performance of ₦13.75 billion increase, relative to that of August 2018, is attributable to higher revenue by the Nigerian Petroleum Development Company (NPDC), the corporation’s upstream subsidiary. NNPC Group General Manager, Group Public Affairs, Mr. Ndu Ughamadu, in the press release stated that NPDC’s production has been on the rise as a result of success recorded in repairs of vandalized pipeline in the Niger Delta and the resumption of crude oil lifting activities at Forcados Terminal. The said a total crude oil and gas export sale of $626.62million was made in September, 2018 under the NNPC’s US dollar transactions which is 33.32 per cent higher than the previous month. It stated that crude oil export sales contributed $508.54 million which is 81.16 per cent of the dollar transactions compared with $337.62million contribution in the previous month. It also said that export gas sales amounted to $118.08 million in the month, adding that the September 2017 to September 2018 crude oil and gas transactions indicated that crude oil & gas worth $5.45 billion was exported. In the downstream sector, the report noted that during the period, NNPC continued to ensure increased petrol supply and effective distribution across the country, saying that during the month, 1.66billion litres of petrol, translating to 55.50 million liters/day, were supplied by the corporation. It also stated that in the month under review, a total of 125 pipeline points were vandalized; out of which eight pipeline points failed to be welded and only one pipeline point was ruptured. The figure translates to a significant increase from the 86 vandalized points recorded last month. •
NEWS - NORTH AMERICA Subsea 7 Awarded Contract Offshore Us Gulf of Mexico
Canadian Government Announces Support for Workers in Oil and Gas Sector
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The Manuel project comprises a two well development tie-back to the Na Kika production facility, working at water depths of up to 1,900 meters. The project’s SURF workscope includes engineering, procurement, construction and installation (EPCI) of an electrically heat traced flowline (EHTF) and a steel catenary riser and all associated subsea structures as well as front-end engineering and design (FEED). Offshore operations are due to commence in the fourth quarter of 2019.
This support includes:
ubsea 7 S.A. announced the award of a sizeable SURF (subsea umbilicals, risers and flowlines) contract by BP for the Manuel project in the US Gulf of Mexico. Project execution will be delivered by Subsea Integration Alliance (SIA), which is a partnership between Subsea 7 and OneSubsea Schlumberger, to provide BP with a fully integrated solution.
Early engagement between SIA and BP has enabled the project to be the first in the US to use Subsea 7’s EHTF technology, which enables cost-effective longer tie back solutions. Craig Broussard, Subsea 7 Vice President for the Gulf of Mexico, said: “The award of the Manuel project is a clear demonstration of the power of collaboration between all stakeholders. Together with our SIA partner, OneSubsea, and the BP team, we have produced an optimised solution that will see the deployment of EHTF technology. This has enabled us to reduce the total cost of the project, while in parallel accelerating the first oil target date to just 24 months from discovery. SIA has been able to deliver this accelerated schedule by removing critical path challenges through early engagement, on both SPS and SURF scopes of work. This has ultimately allowed us to achieve a solution that creates sustainable value for all parties despite a challenging cost environment.” •
he Government of Canada announced more than $1.6 billion to support jobs and workers in Canada’s oil and gas sector, as Canada seeks to diversify export markets for its resources beyond the United States. These measures will support workers and their families, foster competitiveness and improve the long-term environmental performance of the oil and gas sector. $1 billion in commercial financial support from Export Development Canada to be made available to exporters of all sizes to assist companies looking to invest in innovative technologies, address working capital needs or explore new markets. A new $500-million Energy Diversification commercial financing envelope over three years from the Business Development Bank of Canada to help higher-risk but viable oil and gas small business enterprises weather the current market uncertainty. These commercial loans can be used to help companies: increase operational and environmental efficiency purchase new technology and equipment, or expand into new markets. A $50-million investment through Natural Resources Canada’s Clean Growth Program in oil and gas projects that will generate investment of $890 million. These projects will use new technologies to reduce energy requirements and improve production and the environmental performance of the oil and gas sector. $100 million through Innovation, Science and Economic Development Canada’s Strategic Innovation Fund in energy and economic diversification-related projects. Investments from the National Trade Corridor’s Fund are also available for projects that address bottlenecks in the freight rail system to support the efficiency and fluidity of transportation of all commodities. A suite of Employment and Social Development Canada services and programs is also available and can be deployed quickly to assist workers who may be negatively affected. This includes Work-Sharing to prevent layoffs and immediate income supports through Employment Insurance. Employment programming such as counselling, job search assistance, training and skills development programs delivered by provinces and territories is also available. These measures build on recent federal and provincial efforts to support Canada’s oil and gas sector. These include: the Government of Canada’s $4.5-billion investment in the Trans Mountain Pipeline and related assets; the Government’s introduction of the Accelerated Investment Incentive announced in the Federal Fall Economic Statement that allows accelerated capital cost allowance rates for tax purposes; plans to reduce the regulatory burden on Canadian businesses — including those in the oil and gas sector — while continuing to protect Canadians’ health and safety, as well as the environment; and Natural Resources Minister Amarjeet Sohi’s request that the National Energy Board explore options to optimize pipeline use in Western Canada. •
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Rose Petroleum Acquires Additional Acreage in the Paradox Basin
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ose Petroleum plc, the AIM quoted natural resources business, is pleased to announce that the Company and Rockies Standard Oil Company (“RSOC”), its joint venture partner have successfully participated in the December 2018 Bureau of Land Management Utah lease sale. This resulted in the Company acquiring a 75% working interest in an additional 1,920 gross acres (1,260 net acres) (the “New Acreage”) immediately adjoining its Gunnison Valley Unit (“GVU”) acreage in the Paradox Basin, Utah, U.S.A. The majority of the New Acreage, 1,600 of the total 1,920 gross acres, is covered by the existing 3D seismic data that the Company acquired in late 2017. This acreage purchase completes a targeted lease acquisition programme driven by the 3D seismic interpretation that has resulted in the capture of multiple high-ranked well locations in addition to those found within the initial GVU lease position. Utilising a similar methodology to that of the Gaffney Cline & Associates (“GCA”) Competent Person’s Report (dated 30 April 2018), Rose estimates that the New Acreage has potential 2C Contingent Resources (net to Rose) of 1.2mmboe (million barrels of oil equivalent), within Clastic 21. This is in addition to the existing Clastic 21, GVU net 2C Contingent Resources estimate of 12.33 mmboe which was valued at a pre-tax NPV10 of US$122.4m, by GCA in 2018. The New Acreage was acquired at a cost of $35,000 and an exceptionally low acquisition cost/net boe of US$0.03/boe. Matthew Idiens, CEO, commented: “Following on from the very encouraging independent technical studies completed by both GCA and Schlumberger, this acquisition stands to add further high quality
acreage at an exceptionally low entry cost. Rose estimates an NPV10 of approximately US$12m for the New Acreage, making this an excellent value add ahead of the Company’s proposed drilling programme. I now believe that Rose has fully utilised its unique 3D dataset to build a high potential acreage position and to significantly de-risk the initial drilling locations. We are now focusing wholeheartedly on the main objective of financing the drilling programme.” •
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NORTH AMERICA - NEWS Shell Starts Production at New Petrochemicals Unit in US Gulf Coast
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uccessful completion of major expansion project makes Shell’s Geismar chemicals manufacturing site the largest producer of alpha olefins in the world. Shell Chemical LP (Shell) today announced the start of production of the fourth alpha olefins (AO) unit at its Geismar, Louisiana, USA chemical manufacturing site. The 425,000-tonne-per-year capacity expansion brings total AO production at Geismar to more than 1.3 million tonnes per annum. Start-up operations began in December 2018. Alpha olefins are key ingredients in many finished products that people use and enjoy every day, including laundry detergents, motor oils, and hand soaps. “Our team delivered this world-class expansion project safely, on time and within budget,” said Graham van’t Hoff, Executive Vice President for Shell’s global chemicals business. “This is a key growth project for Shell’s global chemicals business. Geismar will continue to play a leading role in providing the materials for products that an increasing number of people need and enjoy.” The new unit strengthens Shell’s leading position in the US Gulf Coast and illustrates the strategic value of its integrated downstream business. The Geismar site is supported with advantaged ethylene feedstock from Shell’s nearby Norco, Louisiana and Deer Park, Texas manufacturing sites, enabling the site to respond to market conditions. The expansion project contains around 3,570 tonnes of steel, 18,290 metres of concrete and 85 linear kilometres of pipe. Several new pieces of infrastructure were built as part of the expansion, including a new water cooling tower, a significant expansion of the site’s rail loading capabilities, and the repurposing of a previously idled tank farm. •
New Policy for U.S. LNG Exporters
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he U.S. Department of Energy (DOE) announced that it would now only require U.S. LNG exporters to report the country or countries of LNG deliveries, not country of end-use, to satisfy the DOE’s destination reporting requirement. Further, DOE announced additional efforts to streamline the reporting requirements for LNG export supply sales and contracts. “With the United States now being the world’s top producer of oil and natural gas, it is imperative that U.S. LNG companies have all the tools they need to get their American product into the international market,”said U.S. Secretary of Energy Rick Perry. “By streamlining the destination reporting requirements, the Department of Energy is taking an important deregulatory step forward in order to better provide reliable U.S. LNG to our friends and allies abroad.” “Increasing U.S. LNG exports to the world market brings great benefits to Americans here at home and our allies abroad from cleaner air to increased job growth and energy security,” said Assistant Secretary for Fossil Energy Steven Winberg. “Right now, the U.S. is growing its position as a global leader in LNG exports and is projected to be the third largest in the world behind Australia and Qatar by the end of 2019. Today’s action is another way the Trump Administration is working to advance American energy dominance.” The policy change will address the reporting of LNG delivery destinations and the types of supply and sales agreements LNG exporters must file with DOE. Currently, DOE requires some LNG export authorization holders to report the final country of end-use for LNG exports, which can differ from the country receiving the initial physical delivery of LNG. Given the complexity of some LNG export transactions, and the challenges associated with tracking LNG exports all the way to their point of end-use, DOE is indicating via a new policy statement that reporting the country or countries of LNG deliveries (not country of end-use) will satisfy the destination reporting requirement. With this change in reporting requirements, LNG exporters are still required to continue the current ban on LNG exports to sanctioned countries. •
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NEWS - SOUTH AMERICA Hess Update on Drilling and Development Activities Offshore Guyana
Petróleo Brasileiro 2019-2023 Business and Management Plan
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ess Corporation (NYSE: HES) said today that drilling has begun on the Haimara-1 exploration well offshore Guyana, the first of two planned exploration wells in January. The Stena Carron drillship is drilling the Haimara-1 well, located 19 miles (31 kilometers) east of the Pluma-1 discovery in the southeastern part of the Stabroek Block. The Noble Tom Madden drillship will drill the second well, Tilapia-1, located three miles (five kilometers) west of the Longtail-1 discovery. The Tilapia-1 well is located in the growing Turbot area. Operator ExxonMobil is progressing the Liza Phase 1 development, which has moved into its peak execution phase ahead of expected startup in early 2020. Drilling of development wells in the Liza field is continuing using the Noble Bob Douglas drillship, subsea equipment is being prepared for installation, and the topside facilities modules are being installed on the Liza Destiny floating, production, storage and offloading (FPSO) vessel in Singapore. Preparations are underway for the commencement of pipe-laying activities in the Liza field in the spring. The Liza Destiny FPSO is expected to sail from Singapore to arrive offshore Guyana in the third quarter of 2019. The growing resource base on the Stabroek Block underpins the potential for at least five FPSOs producing more than 750,000 barrels of oil per day by 2025. Liza Phase 2 is expected to start up by mid 2022. Pending government and regulatory approvals, project sanction is expected in first quarter 2019 and will use a second FPSO designed to produce up to 220,000 barrels per day. Sanctioning of a third development, Payara, is also expected in 2019 with start up as early as 2023. ExxonMobil plans to deploy a seismic vessel operated by Petroleum Geo-Services (PGS) to the Turbot area to acquire 4-D seismic data similar to a 4-D campaign conducted in the Liza area in 2017. A second PGS vessel has been released after seismic acquisition activities were suspended on Dec. 22 when vessels were approached by the Venezuelan navy in the northwest portion of the Stabroek Block. Drilling and development operations offshore Guyana are unaffected by the incident, which occurred more than 110 kilometers northwest of the Ranger discovery. Esso Exploration and Production Guyana Limited is operator and holds a 45 percent interest in the Stabroek Block. Hess Guyana Exploration Ltd. holds a 30 percent interest and CNOOC Nexen Petroleum Guyana Limited holds a 25 percent interest. •
etrobras reports that its Board of Directors has approved, in a meeting held yesterday, the 2040 Strategic Plan and the 2019-2023 Business and Management Plan, prepared in an integrated manner. 2019-2023 Business and Management Plan Integrated into the Strategic Plan, the Business and Management Plan details the operational planning, with a focus on safety, as well as the financial planning and the pursuit of profitability in our businesses for the next five years. The Plan incorporates a new top metric, seeking to ensure profitability, in addition to maintaining the safety and debt reduction metrics that guide the company’s strategies: • Total Recordable Injuries per million man-hour frequency rate (TRI) below 1.0 in 2019; • Net debt/adjusted EBITDA below 1.5 in 2020; • Return on capital employed (ROCE) above 11% in 2020.. Exploration and production continue to be the most important value generation engine of the company, and the focus remains on the development of production in deep waters, notably in the pre-salt areas. Refining, transportation and trading will continue to operate in integration with E&P, but with a new participation model for Petrobras, considering partnership with other companies, and in the case of petrochemicals, its potential integration with refining will be better explored. With the expansion of gas production, the company will pursue greater value generation, considering natural gas as a vehicle for growth and establishment of a global position for Petrobras. The company will also seek partnerships in renewable energy businesses, as a new value generation engine with focus on a sustainable future for the company. Oil, NGL and Natural Gas Production In 2019, oil production growth will be 10% in Brazil and 7% in total production, due to the entry into operation of 5 new systems in 2018 and 3 more in 2019. Throughout the Plan, it is foreseen the start-up of 13 new systems. For the period between 2020 and 2023, total oil and natural gas production will grow at an average rate of 5% per year. Continuous cost efficiency and pre-salt lifting costs below US$ 7/boe will drive the average lifting cost to levels under US$ 10/boe from 2020. Repositioning in Refining The Plan foresees repositioning in refining by means of partnerships in the Northeast and South clusters, which represent 40% of the installed refining capacity in Brazil, allowing to share business risks and establish a more dynamic, competitive and efficient sector, in addition to generating liquidity for the company. Sustainability This plan also brings a commitment to the decarbonization of processes and products, establishing zero growth of absolute operational emissions until 2025, considering 2015 as reference, even with increase in production. Targets are set to reduce emissions intensity by 32% in E&P and 16% in Refining between 2015 and 2025, when we’ll reach 15 kg CO2e/boe in E&P and 36 kg CO2e/t CWT in Refining. Fundability Through the discipline of costs, debt reduction and commitment to profitability, the company estimates a strong free cash flow generation in the plan period. Petrobras will move forward with the divestment projects already announced and will continue with partnerships and divestments driven by active portfolio management, with potential cash entry of US$ 26.9 billion over the period of the plan. These initiatives, combined with an operating cash generation estimated at US$ 114.2 billion, after dividends, taxes, and contingencies, will allow Petrobras to carry out its investments and reduce its debt, without the need for new net borrowings on the horizon of the plan. •
26
Ocean Infinity to perform AUV Surveys in Brazil
O
cean Infinity, the next generation seabed survey and ocean exploration company, is pleased to announce that its partner, Cepemais, the Brazilian offshore consulting company, has been awarded a contract to provide high-resolution hydrographic mapping services to Petrobras, the Brazilian national oil company. The project is for the Campos, Espirito Santo and Santos basins, offshore Brazil, and will see Ocean Infinity working under contract to Cepemais to map an area of 5,000km2 and inspect 12,000km of pipelines. Operating from Ocean Infinity’s ‘Island Pride’ vessel, the Company’s Autonomous Underwater Vehicles (AUVs) will be working in water depths of between 50 and 3,000 metres. The data collected by Ocean Infinity will then be interpreted and reported upon by Cepemais. Work commences in mid-2019 and the contract duration is for three years. Ocean Infinity’s AUVs are the most technologically advanced in the world. They are capable of operating in water depths from 5 meters to 6,000 meters. The AUVs are not tethered to the vessel during operations, allowing them to go deeper and collect higher quality data for the search. They are equipped with a side scan sonar, a multi-beam echo-sounder, a sub-bottom profiler, an HD camera, a conductivity / temperature / depth sensor, a self-compensating magnetometer, a synthetic aperture sonar and a turbidity sensor. Oliver Plunkett, Ocean Infinity’s CEO, said: “We are delighted to be supporting Cepemais on this important Petrobras project. Working on a project of this scale is a clear endorsement of our technology and highlights how the oil & gas industry recognises that through the deployment of multiple AUVs, we can deliver the highest quality data, safely, quickly and more cost effectively than ever before. This project follows our recent work for Woodside on the Scarborough Field and we look forward to providing further updates on our progress in the sector in the months ahead.” •
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NEWS - RUSSIA & THE CIS Grozny TPP Comes Onstream
A
commissioning ceremony for Power Unit No. 1 of the Grozny Thermal Power Plant (TPP) took place today in Grozny.
Taking part in the event were Valery Golubev, Deputy Chairman of the Gazprom Management Committee, Alexander Matovnikov, Presidential Plenipotentiary Envoy to the North Caucasus Federal District, Ramzan Kadyrov, Head of the Chechen Republic, Denis Fyodorov, Director General of Gazprom Energoholding, and representatives of the regional authorities, subsidiaries of Gazprom Energoholding, as well as design and contracting organizations. With Power Unit No. 1 up and running, the first of two stages in the construction of the Grozny TPP is now completed. The newly operational facility, which has a capacity of some 180 MW, consists of a gas turbine unit based on a gas turbine and a generator produced by Siemens. The construction process made wide use of Russian technological systems and equipment, including automation and relay protection systems, switchgear, gas treatment equipment, dry fan cooling towers, and exhaust stacks with an emission monitoring system. The facility uses natural gas, the cleanest of fossil fuels, as its primary fuel. During the second stage, Power Unit No. 2, which will have similar performance characteristics and equipment, will be built and brought into operation. The aggregate installed capacity of the TPP will thus reach its design value of approximately 360 MW. “Up until now, there have been no high-performance power plants in the region. Power Unit No. 1 of the Grozny TPP will meet a considerable share of the Chechen Republic’s electricity needs. As soon as the second power unit comes onstream next year, the TPP’s production rate will double and reach approximately 360 MW. As a result, the power plant will be able to produce more electricity than the amount consumed in the region throughout 2017. The new, state-of-the-art power plant will contribute to the regional economy and improve the stability of southern Russia’s energy system. By completing the construction of the Grozny TPP, the Gazprom Group will bring to a close its ambitious program for the creation of new capacities under its capacity supply agreements,” •
Lukoil produces 20 million tonnes of oil from Caspian Sea fields LUKOIL’s cumulative production of oil in the Russian part of the Caspian Sea has exceeded 20 million tonnes, Vladimir Filanovsky field accounting for the most significant gain in production. Thus, the cumulative production of the field reached 11.3 million tonnes of oil since commercial production commenced in October of 2016. Fourteen wells, five of which are bilateral, were drilled at phases one and two of the field development project. Their flowrate is around three thousand metric tons a day. Yury Korchagin field, launched in 2010, was LUKOIL’s first field in the north of the Caspian Sea. The average capacity of the 32 wells operating currently at the field is 2,600 metric tonnes a day. The field’s development is now in its second stage. Both Caspian fields feature multilateral wells with TAML level 5 completions and also technologies of intelligent completion which make it possible to adjust oil influx rates zonally in the horizontal wellbore. LUKOIL’s fields in the north of the Caspian Sea share a single infrastructure for the handling and transportation of production. In 2018, the company commenced development of another Caspian project, Rakushechnoye field. •
28
CIS Petrochemicals Conference Arrives in Moscow
T
he organizer of the largest petrochemical business forum in Russia, Globuc, has announced the dates for the 7th annual conference. The event will be held in Moscow from April 11 to April 12 and will be traditionally co-located with a conference focusing specifically on gas monetization and methanol-based chemistry. “Currently there are a lot of business conferences, but they all are focusing on anything, but not on specific business objectives. Our conference is for and about the actual business. We do not have random participants and reports,” Artem Kim, the conference leader, said of the conference objective. According to the Analytical Centre under the Government of the Russian Federation, in the period of up to 2030, the production of largecapacity polymers in Russia will increase to 14.4 million tons (almost 3 times), and consumption - 2 times. This creates great prospects for the industry. The CIS Petrochemicals conference serves as an independent platform for communication between industry professionals. 35% of conference participants are manufacturers of petrochemical products. The total combined investment in the projects of the companies participating in the 2018 conference is more than $60 billion.
The program of the upcoming conference will discuss: •
The present and future of global petrochemistry. How long will the good times last?
•
What closed loop economy trends carry for petrochemical manufacturers
•
World market reviews - Asia, Middle East, US ethylene petrochemistry
•
Technology transfer of high conversion chemicals
•
Integration of refineries and petrochemical plants: the reality of the region
The conference will be held in partnership with Sibur Holding, which is a multi-year partner of the event. Among other participants and partners of the conference are: ExxonMobil, Dow, EuroChem, Nizhnekamskneftekhim, BASF, Linde Engineering and many others. The full conference programme is available on the event website. Globuc is the organizer of specialized business events for the oil and gas industry. In Russia the company holds conferences on petrochemistry, gas monetization, base oils and lubricants. •
Topics in 2019 include both technological and economic aspects of the implementation of petrochemical projects. “We intentionally do not to focus on one aspect, since in reality technologies do not exist separately from financing. All these things are important for the successful implementation of projects”- said Artem Kim.
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NEWS - ASIA PACIFIC Eni Announces the Approval of the Investment Plan for Merakes Development Project
E
ni will start with the execution of the Merakes Development Project in Indonesia following the approval received by the Minister of Energy of Indonesia and the authorization for the investment plan sanctioned by the company’s Board of Directors. The Merakes development project, located in the Kutei Basin, offshore East Kalimantan, consists in the drilling and construction of subsea wells with a dedicated transportation system in 1500m water depth and connected to the Jangkrik Floating Production Unit (FPU), located 35 kms North East. The gas production will be shipped to the Bontang LNG plant using also all the other existing facilities of Jangkrik field as well as the East Kalimantan transportation network. This new production will contribute also to the life extension of the plant. Eni BoD approval comes just few days after the conversion to the Gross Split Scheme of the East Sepinggan PSC (Production Sharing Contract) and the approval of the revised field development plan under the terms of the Gross Split by the Minister of Energy of Indonesia. Eni’s CEO Claudio Descalzi said: “the Merakes Development Project approval is an important step for our strategy in South East Asia aimed at increasing both our presence and our production only through an organic growth. In order to do so, we will leverage on exploration, which will enable us to increase our reserves first, and then our gas production thanks to the optimization of existing facilities and complying with the strictest time-to-market. The Indonesian domestic market is in big expansion and we will continue to pay attention in order for our activities to support and valorize it”. The Merakes development project is a successful outcome of the Eni near field exploration and appraisal strategy, which allows to maximize the synergies with existing nearby infrastructures, such as those of Jangkrik field started up in May 2017, as well as to reduce the costs and the time-to-market of the project. This development will also strengthen Eni’s technological and operations leadership in the development of deep-water gas fields in Indonesia. Eni is the operator of East Sepinggan Contract Area through its subsidiary Eni East Sepinggan Limited which holds an 85% Participating Interest while PT Pertamina Hulu Energi East Sepinggan holds the remaining 15%. Eni has been operating in Indonesia since 2001 and holds a large portfolio of assets in exploration, production and development. Production activities are located in the Kutei Basin, East Kalimantan, mainly through the Jangkrik field, in the Muara Bakau working area, that delivers production in excess of 650 mmscfd •
Eni Announces Gas Discovery in the Indonesian Offshore
E
ni successfully drilled and tested the Merakes East prospect in East Sepinggan block, Offshore Kalimantan, Indonesia. The prospect is located 33 km south east from the Eni-operated Jangkrik field and just 3 km east of the Merakes Field. The well has been drilled to a depth of 3,400 m MD in 1,592 m of water depth and encountered 15 meters of gas bearing net sands in two distinct levels of Miocene Age. The production test, which was limited by surface facilities, recorded an excellent gas deliverability of the reservoir, and allowed to collect all the necessary data to perform all the studies required for the submission of a field development plan for the commercial exploitation of this new discovery. The analysis of test data show that in production configuration the well can deliver 70 mmscfd of gas and 1000 bbld of associated condensates. The proximity of this new discovery to Merakes field, whose development plan investments were approved just few days ago, in line with Eni near field exploration, will allow to maximize the synergies among the subsea infrastructures as well as to reduce costs and time of the execution of the future subsea development. Eni has been operating in Indonesia since 2001 and currently has a large portfolio of assets in exploration, production and development. Eni is the operator of East Sepinggan Contract Area through its subsidiary Eni East Sepinggan Limited which holds an 85% Participating Interest while PT Pertamina Hulu Energi East Sepinggan holds the remaining 15%. Production activities are located in the Kutei Basin, East Kalimantan, mainly through the Jangkrik field, in the Muara Bakau working area, that delivers production in excess of 650 mmscfd. •
30
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MENA - NEWS
Petrofac Announce Trading Update
P
etrofac issues the following pre-close trading update ahead of the announcement of its full year results for year ending 31 December 2018 on 28 February 2019. Trading in line with expectations New order intake(1) of US$5.0 billion in the year to date Net debt is expected to be around US$250 million at 31 December 2018 Ayman Asfari, Petrofac’s Group Chief Executive, commented: “We are on course to report good results, which reflect solid operational performance in all our businesses and excellent progress delivering our strategy. “Healthy new order intake in both our core and growth markets reflects our competitiveness in a market that has seen some delays in contract awards. We have also made excellent progress transitioning back to a capital light business with US$0.8 billion(2) of divestments of non-core assets, realising US$0.5 billion of net divestment proceeds to date.
MHPS Completes Handover for Turbine Generation Facilities in China
M
itsubishi Hitachi Power Systems, Ltd. (MHPS) announces that the steam turbine generation facilities supplied for the Haiyang Nuclear Power Plant in China have cleared all functional, safety confirmation, and required performance tests, and a handover was made on December 11. Operations at the plant have begun, making it the second site with a 1,250 megawatt class pressurized water reactor (AP1000), after the Sanmen nuclear power plant. The Haiyang Unit 1 began fuel loading on June 21, 2018, and reached 100% output in mid-September. On October 22, the facility reached the 168 hours of continuous demonstrated operation required by the Chinese government, and performance tests were completed on November 6. As with the Sanmen Plant Unit 1, MHPS conducted the appropriate prior verification tests of the interface between the nuclear reactor and turbine sides. The meticulous project management and close communication led to a smooth start of official operations. Trial operations for the next system, Haiyang Unit 2, are proceeding steadily, and are expected to reach 168 hours of continuous demonstrated operation within the year. The Haiyang Nuclear Power Plant was built by Shandong Nuclear Power Co., Ltd. in Haiyang, Shandong Province, approximately 130 kilometers east of Qingdao. This is the first nuclear power plant built in Shandong Province, and the first nuclear power project undertaken by Shandong Nuclear Power’s parent company, State Power Investment Corporation Limited (SPIC). The Haiyang facility comprises two units, each with an output of 1,250 megawatts. Based on a technology transfer agreement with Harbin Electric Corporation, MHPS handled the designs for the turbine, heat exchanger, and auxiliary equipment, and transferred the technology. MHPS also manufactured and provided six low-pressure turbines, two high-pressure turbines, the main valves, and other equipment for the two units within the facility. Harbin Electric handled the manufacturing of the turbine casing, heat exchanger, and other equipment, while Mitsubishi Electric and Harbin Electric each supplied one of the two generators. •
“Looking forward, we remain focused on securing new orders, delivering operational excellence and maintaining a strong balance sheet. We are well-positioned with a differentiated offering, good backlog and revenue visibility, and high levels of tendering for award in 2019.” Engineering & Construction (E&C) We have made solid progress delivering our portfolio of projects. In Kuwait, the Lower Fars Heavy Oil, Manifold Group Trunkline and KNPC Clean Fuels projects are in pre-commissioning or phased handover stages. In Abu Dhabi, we recently achieved a major milestone on the Upper Zakum Field Development with the oil facility ready for start up. Elsewhere, the Jazan North and South tank farms, Fadhili sulphur recovery plant and RAPID projects are nearing completion. The topside platform has also been successfully installed on the Borwin 3 offshore wind project in the North Sea. We have been awarded new orders worth US$3.8 billion in E&C year to date. Of these, US$2.2 billion were awarded in growth markets, including the Thai Oil refinery project in Thailand, three projects in India and an offshore wind project in The Netherlands. We are currently bidding on more than US$15 billion of tenders scheduled for award in the first half of 2019. Engineering & Production Services (EPS) The continued resilience of our operations business, short-term extensions of historical contracts in EPS East and good progress on our EPCm (3) projects are off-setting a challenging market environment for brownfield projects in the North Sea. We have secured US$1.2 billion of awards and extensions in EPS year to date, predominantly in the UK, Oman, Turkey and Iraq. Integrated Energy Services (IES) Net production is forecast to be approximately 6.1 mmboe in 2018, in line with guidance (4). The average realised oil price (net of royalties) for the year is expected to be approximately US$61 per barrel of oil equivalent (2017: US$51/boe) reflecting higher oil prices, production mix and hedging activity. Financial position: Group backlog stood at US$10.2 billion at 30 November 2018: •
33
E&P
Oil & Gas Injection Water; Filter Development W vital.
hen offering any filtration solution, fully understanding an application is
Many Upstream applications rely on excellent water quality, for injection. The importance of effective water treatment is often underestimated. Water intake quality can vary tremendously due to algae and plankton blooms, silts and other sediments - including oil itself - leading to significant impact upon the performance of downstream water treatment facilities. If not addressed correctly, injection water (Produced Water and Sulphate Removal Process Water), can be of poor quality, resulting in oil production loss and a drop of reservoir pressure. Amazon Filters specialises in ‘water for injection filtration’ and its filter cartridges excel at protecting critical downstream membranes often used in these processes. Amazon Filters SupaPleat XP filter cartridges are specifically designed for water injection. Using these filters can maximise membrane life by avoiding cartridge blinding, membrane fouling and interruption to the process. Reduced operational expenditure (on filter
replacement costs) is an additional benefit. These high surface area filter cartridges utilise multiple layer, pleated depth media technology to provide low pressure losses and high dirt capacity at multiple flow rates. This allows the SupaPleat XP filter to provide a unique combination of long life and reliable performance under varying fresh, sea and produced water conditions.
subsequently a high loading onto the 10micron cartridges. The cartridge life was only 3-4 days, which was unacceptable, as both the frequency of changeout and spares costs were too high. The constraint was that the operator was unable to relax the 10micron absolute filtration specification as the water being supplied to the membranes was required to have an SDI of less than 5.
Having worked with many FPSO operators and platforms, Amazon Filters recognises the challenging nature and complicated logistics of supplying consumable items to offshore installations; noting as a consequence, that operators want their water filters to give significant life and infrequent changeouts.
Amazon Filters developed and in-house tested a number of SupaPleat XP variants, designed with a multi-layered construction and progressively finer layers, - to give builtin pre-filtration. This provided significantly longer life along with acceptable SDI results. When the operator tested the filters off-shore they found the SupaPleat XP filter variant increased life to 4 weeks before changeout whilst still providing good membrane protection.
One such operator was experiencing issues with its water for injection and sought advice from Amazon Filters on how best to resolve this. The operator was passing seawater through strainers down to 80 microns before going through multi-media beds. The water was then filtered through 10micron absolute rated filters prior to the membranes. Initially, issues with flocculent chemicals resulted in problems with the media beds and
Value added service is provided by Amazon Filters expert filtration engineers, from project initiation through to delivery. Amazon also offers the use of laboratory facilities to support its after-care Customer service. For further information, please see below.
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Who are we? Granzow A/S is a leading supplier for the industry of screw compressors. We also produce a complete range of solutions in automation products, such as bursting discs and panels,valves and pneumatic cylinders. Additional Granzow has an extensive program of pumps and a complete line of vacuum pumps.
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NEWS
Statement by IMF Managing Director at the Conclusion of a Visit to Ghana Ms. Christine Lagarde, Managing Director of the International Monetary Fund (IMF), issued the following statement today in Accra at the conclusion of her visit to Ghana: “My visit to Accra has been very fruitful and informative, and I am extremely grateful for the warm hospitality of the people of Ghana. “I wish to thank President Nana Addo Dankwa Akufo-Addo, Vice-President Bawumia, Finance Minister Ofori-Atta, Bank of Ghana Governor Addison, their teams, and other officials for our constructive and substantive discussions. I also had the honor to meet with a broad cross-section of the Ghanaian community, including members of civil society, business women, and representatives of the private sector. I was heartened to visit the Purim African Youth Development Platform which has demonstrated a deep commitment to supporting Ghana’s most vulnerable and disadvantaged girls.
I
commended the Ghanaian authorities for their good track record under the IMF-supported program. I encouraged them to pursue efforts to tackle the remaining challenges, including high debt, large fiscal risks from the energy and financial sectors, and governance issues. “Increasing revenue mobilization, preserving financial stability, improving management of the energy sector, and implementing responsible polices will help anchor investors’ confidence.
“At the Conference on the Future of Work organized by the government of Ghana and the IMF yesterday, I noted that entrepreneurs and countries are taking advantage of technological advances to tackle growth constraints and provide better services to consumers and citizens. To best harness the opportunities of the fourth industrial revolution, we need openness to alternative development models and support for new and emerging sectors driving growth. As
we discussed at the conference, this puts a special focus on five policy areas: traditional and digital infrastructure, education, smart urbanization, enhancing social safety nets, and trade integration. “The IMF will remain fully engaged in Ghana’s ongoing efforts to foster prosperity and opportunities for all. Credible and sustainable policies will support Ghana’s leadership position in the region.” •
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Tlou Energy Announces Recommencement of Drilling at the Lesedi CBM Project Tlou Energy Limited, the ASX, AIM and BSE listed company focused on developing gasto-power projects in southern Africa using coal bed methane (“CBM”) natural gas from its gas field in Botswana, is pleased to announce that the Company’s operational team has recommenced Production Pod drilling at its advanced stage Lesedi CBM project.
D
rilling operations update
The Company is pleased to announce that following the successful drilling of the vertical wells and the top-hole sections for the new production pods at the Lesedi CBM Project, operations have now recommenced to drill the lateral well sections for the first two Production Pods (Lesedi 3 & 4). Following the completion of lateral wells (Lesedi 3A & 3B and Lesedi 4A & 4B), the production pods will be completed using a separate workover rig ahead of installation of surface production facilities including water evaporation ponds. All of the production pods are being drilled in the same area as has been proposed for the initial project development and are aimed at confirming the gas flows in this area as well as ensuring production readiness prior to commencement of development operations. Dewatering and production testing activities will begin immediately following the completion of the production pods and the Company expects to provide regular updates on production testing progress.
Lesedi Project Gas Reserves and Contingent Resources The Tlou Energy Lesedi CBM Project currently has sufficient gas Reserves for an initial development of 10MW based on 2P gas Reserves of ~41 billion cubic feet (BCF). In addition, 3P gas Reserves of ~427 BCF and Contingent Gas Resources of ~3,044 BCF provide significant additional potential. The Company estimates that a 10MW project over 25 years would require gas Reserves of approximately 28 BCF and that a 100MW project for 25 years would require approximately 274 BCF. As further data becomes available during the production testing process, it is expected that there may be scope for a further upgrade of gas Reserves within the Lesedi Project area. Response to Government 100MW RFP Tender On 14 October 2018, Tlou Energy submitted a comprehensive response to the Government of Botswana’s Request for Proposal (RFP) for the supply of up to 100MW of CBM generated power. The Company is awaiting
a response from the Government. Whilst the tender evaluation process is ongoing, the Company has entered into discussions with other potential off-takers of gas and power as well as potential financiers of the downstream development. The latter being subject to securing an appropriate Power Purchase Agreement (PPA). Environmental Impact Assessment An Environmental Impact Assessment (EIA) for the downstream development of the power generation facility and transmission lines was submitted late last year. This was a comprehensive report that required extensive consultation with all stakeholders. Timely approval of the EIA will facilitate the implementation of the downstream power generation aspect of the project. Tlou Managing Director Tony Gilby said “Thus far, drilling operations at the Lesedi CBM Project have been progressing according to plan. Following the Christmas break, our field team have re-mobilised and have now recommenced drilling activity to complete the production pods at Lesedi from which we intend to produce gas to potentially supply the initial stages of our proposed CBM gas-to-power project. We look forward to providing investors with further updates in relation to operational progress specifically, the successful completion of the production pods and commencement of production testing activities. In October 2018 Tlou submitted a comprehensive tender to the Government of Botswana’s Request for Proposal for the supply of CBM generated power to the Botswana grid. While we await a response to our tender, we are pushing forward with a number of workstreams including the drilling of our gas production wells, the lodgment of the downstream Environmental Impact Assessment, evaluating membership of the Southern African Power Pool, negotiations for a power generation license and discussions to secure development finance upon acquiring an appropriate PPA.•
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Block Energy Reports Excellent Initial Recovery at Norio Field Block Energy Plc, the exploration and production company focused on the Republic of Georgia, is pleased to announce that, as part of a fully-funded multi-well workover programme at its 100% owned Norio field, 45 barrels of sweet crude oil were recovered during a five hour period from the first well to which a specialist enhanced perforation tool was applied. The work programme at Norio, which consists of eight workovers and one sidetrack, is targeting a 25-fold increase in production to 250 bopd by H1 2019. Norio has gross oil reserves of 1.631 million barrels
T
he recovery, made while perforating the first of three intervals from the field’s well Norio 44 (‘Norio 44’ or ‘the Well’), highlights the potential of the micro-drilling tool, which is being deployed in eastern Europe for the first time, to penetrate Norio’s oil bearing formations, and offers positive indications for the Well’s stable production rate, which will be announced when available. The Company’s internal forecast for the Well, which has now been put on pump, was 13 bopd. Block plans to use the tool to drill additional holes in Norio 44, if production results demonstrate its effectiveness. A nearby well, Norio 39, is also being put on pump, with daily production rates expected to be available shortly: the internal forecast for this well is 15 bopd. Conventional perforation was applied to Norio 39 as wellbore conditions did not permit the application of the specialist tool. The Company believes that Norio 44 and 39 represent a good test case for comparing the effectiveness of the micro-drilling tool with conventional perforation technology: the wellsare within 1,000 feet of each other and are completed in the same geological formation.
Block is preparing three more Norio wells for application of the specialist tool next month. In parallel with this, the Company is upgrading the Norio field’s central production facility to industry standards to improve reliability and safety. Much of the refurbishment work has been completed, bringing most of the facility back to service. The Company plans an oil sale from the facility later this month. In addition to the Norio programme, the Company is preparing to drill two horizontal sidetracks at wells 16a and 38 on its West Rustavi field, targeting a combined gross production of 650 bopd by the end of Q1 2019. Block holds a 25% participating interest in West Rustavi as part of an agreed earn-in to a 75% interest in the permit which holds 37.9 MMbbls of 2C gross oil resources (Source: CPR). Following the confirmation of the presence of pressure and reserves at thewells, as announced on 14 December 2018, a ZJ40 drilling rig has been mobilised to the drill site. An initial workover has removed some old equipment from the wellbore,
and a subsequent logging programme and pressure test has confirmed the wellbore condition is ready for the horizontal sidetrack operation. The target reservoir is at a depth of approximately 6,900 feet and is believed to have had an original oil column up to 600 feet thick. Block is also preparing to test a legacy gas discovery in the Lower Eocene at West Rustavi, which, according to the well passport the Company received on acquiring its interest in the field, flowed at rates up to 29,000m3/d when originally tested in 1988. This well is on trend with the same play being targeted by Schlumberger in neighbouring fields. Chief Executive Officer Paul Haywood said: “We‘re delighted to announce such an excellent initial recovery at Norio as we work towards our target of producing 250 bopd from the field by the end of H1 2019. If production results continue to be positive we look forward to making increasingly effective use of the specialist perforation tool at Norio 44 and three further wells. We’re beginning to witness the fruits of our work in building our Georgian infrastructure and workforce, which now engages some 80 employees and contractors. “Having raised £5 million by the time of our IPO, we are fully funded to undertake our work programmes at Norio and West Rustavi. With our existing production at Norio selling for Brent minus US$10, a combined rate of production at Norio and West Rustavi of 900 bopd would have the potential to generate circa US$13 million in annual revenues at current oil prices, a level that far outstrips our current £7 million market valuation, and one that would enable the Company to both grow organically, and to seek out further low cost, high potential production opportunities. We look forward to providing further updates, as we press ahead with our strategy to build a leading independent oil and gas company in Georgia, and in the process generate signficant value for our shareholders.” •
SPE/IADC INTERNATIONAL DRILLING CONFERENCE AND EXHIBITION 5-7 March 2019
World Forum, The Hague, The Netherlands
www.spe.org/go/drilling
The World’s Premier Drilling Event
Reach a highly targeted audience of international drilling professionals and advance your scientific understanding of drilling in oil and gas exploration and production. Who Will You Meet? Applications Engineers | Design Engineers and Supervisors | Drilling and Completions Engineers | Executives | Geologists/ Petrophysicists | Production and Operations Engineers | Rig Engineers | R&D Professionals | Reservoir Engineers
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E&P
More on: Tlou Energy Announces Recommencement of Drilling Tlou Energy Limited, the ASX, AIM and BSE listed company focused on developing gasto-power projects in southern Africa using coal bed methane (“CBM”) natural gas from its gas field in Botswana, is pleased to announce that the Company’s operational team has recommenced Production Pod drilling at its advanced stage Lesedi CBM project.
Key Points: •
Drilling of lateral wells at the Lesedi CBM project has recommenced. Specialist directional drilling crew and other key personnel are now on site;
•
Following drilling of the lateral wells, the Lesedi 3 and Lesedi 4 production pods will be completed prior to the installation of surface production facilities. Dewatering and production testing can then begin. Successfully flowing gas at Lesedi 3 & 4 has the potential to upgrade Reserves;
•
•
A comprehensive tender was recently submitted as a response to a Request for Proposal (RFP) for supply of CBM gas-topower to the Government of Botswana. Discussions with other potential off-takers as well as development finance providers is in progress; An Environmental Impact Assessment (EIA) for the power generation facility as well as the transmission lines to connect to the electricity grid has also now been submitted.
Drilling operations update The Company is pleased to announce that following the successful drilling of the vertical
wells and the top-hole sections for the new production pods at the Lesedi CBM Project, operations have now recommenced to drill the lateral well sections for the first two Production Pods (Lesedi 3 & 4). Following the completion of lateral wells (Lesedi 3A & 3B and Lesedi 4A & 4B), the production pods will be completed using a separate workover rig ahead of installation of surface production facilities including water evaporation ponds. All of the production pods are being drilled in the same area as has been proposed for the initial project development and are aimed at confirming the gas flows in this area as well as ensuring production readiness prior to commencement of development operations. Dewatering and production testing activities will begin immediately following the completion of the production pods and the Company expects to provide regular updates on production testing progress. Lesedi Project Gas Reserves and Contingent Resources The Tlou Energy Lesedi CBM Project currently has sufficient gas Reserves for an initial development of 10MW based on 2P gas Reserves of ~41 billion cubic feet (BCF).
In addition, 3P gas Reserves of ~427 BCF and Contingent Gas Resources of ~3,044 BCF provide significant additional potential. The Company estimates that a 10MW project over 25 years would require gas Reserves of approximately 28 BCF and that a 100MW project for 25 years would require approximately 274 BCF. As further data becomes available during the production testing process, it is expected that there may be scope for a further upgrade of gas Reserves within the Lesedi Project area. Response to Government 100MW RFP Tender On 14 October 2018, Tlou Energy submitted a comprehensive response to the Government of Botswana’s Request for Proposal (RFP) for the supply of up to 100MW of CBM generated power. The Company is awaiting a response from the Government. Whilst the tender evaluation process is ongoing, the Company has entered into discussions with other potential off-takers of gas and power as well as potential financiers of the downstream development. The latter being subject to securing an appropriate Power Purchase Agreement (PPA). Environmental Impact Assessment An Environmental Impact Assessment (EIA) for the downstream development of the power generation facility and transmission lines was submitted late last year. This was a comprehensive report that required extensive consultation with all stakeholders. Timely approval of the EIA will facilitate the implementation of the downstream power generation aspect of the project. Tlou Managing Director Tony Gilby said: “Thus far, drilling operations at the Lesedi CBM Project have been progressing according to plan. Following the Christmas break, our field team have re-mobilised and have now recommenced drilling activity to complete the production pods at Lesedi from which we intend to produce gas to potentially supply the initial stages of our proposed CBM gasto-power project. •
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V IS IT
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XH S P O IB FF IT AC SH IN G ER O RE O -E PP EM U RO O A PE RT I .C U NI O .U NIT N G K /E IE XH S IB IT
NEW VENUE NEW OPPORTUNITIES WHAT’S NEW FOR 2019:
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MICHAEL BORRELL, SENIOR VP, NORTH
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HALLIBURTON AND OE19 TECHNICAL
CONFERENCE CHAIR
COMMITTEE CHAIR
MIDSTREAM & PIPELINES
More and More Heavy Lift Projects are Using Vacuum Technology Ceti Suxxesion B.V. was established by myself in 2000. We are specialized in the design and production of so called end of the line attachments. At the end of 2015, the company’s name was changed into Suxxesion B.V. with the brand name, SUXXESION. By Harry Crone
T
he custom made tools are designed to handle by means of vacuum or hydraulics loads such as steel or concrete pipes, steel sheets and billets, concrete elements, wing skins, paper reels or any other object which can be lifted by means of vacuum. Ever since I started Suxxesion our main business was and is pipe handling and we have been able to develop equipment which meet today’s requirements of handling speed and safety, thanks to the input from our international customers. Over the past years we have built a variety of devices to handle pipes for pipe manufacturers and pipe coating companies. We also work in harbor areas, railway / road shipping, storage yards and at the pipe stretch, either hydraulically or by means of vacuum. We are glad and thankful that so many people have contacted us leading to long term business relationships. My company is based in a small city called Buren in the heart of the Netherlands. Like many companies we subcontract steel constructions to regionally based qualified suppliers. We have a long term relationship with these companies and where quality is concerned, we constantly strive to achieve higher standards to meet today’s requirements. As a result we are able to meet all the off-shore requirements.
As previously mentioned, the logistic situation is different per site. A typical example is the Multitool 320 DVHKI built for Data Steel in Pakistan. This device is fully integrated in the Reach stacker. Up front we only need a hydraulic oil feed from the carrying machine and 24 V= controlling by means of blue toot data exchange. A new feature is the hydraulic adjustment of the c-c between the suction pads. This in contradiction to equipment earlier supplied to MPC in Germany.
Both applications are typical arrangements that the handling material is dedicated to handle pipes only. The recently built and developed 320DVHKI is a multi-tool solution which can be equipped with pipe spreaders or with a beam with flat pads to handle steel sheets or concrete. Knuckle boom suspended lifting equipment is used in every site situation which handles pipes to load and off load pipes. As far as harbor applications are concerned we are very experienced in handling pipes in combination with HMC’s Reach stackers and Knuckle boom cranes. Case Studies Double pipe lifters operating in Kotka, Finland and Sassnitz Germany suspended from mobile harbor cranes: Devices were in use to load out the concrete lined pipes for the North Stream Project. Before the concrete lining the pipes were handled by means of vacuum. For that purpose we equipped a.o. two container reach trucks with our vacuum system to load and off load the train wagons. For Cogema in Dunkirk France and Adani Port in India we supplied double pipe spreaders to equip container reach stackers. With simple modifications the reach stacker was adapted to use the Suxxesion attachment suspended from the twist locks. After the break bulk job was finished the reach stacker could be used directly when the attachment was released by the twistlock and the hydraulic connections were uncoupled.
“
Suxxesion is a leading Dutch company for the design and manufacturing of end of the line attachments. Suxxesion has developed the multi- tool to handle pipes by means of vacuum or with hydraulic spreaders for the pipeline industry. The multi tool is available to be attached to the twist-locks of container handling equipment in portal areas, knuckle boom cranes and excavators. Suxxesion vacuum lifting equipment is also used in concrete precast industries, steel sheet handling, aircraft and paper industry.
“ We have supplied vacuum handling equipment to J. Müller in Brake Germany suspended from container bridge cranes and container reach stackers.
For both harbors we have built several other sets of equipment suspended from harbor cranes and gantries. As for Adani Ports we have built a so called multi tool able to handle pipes by means of vacuum or hydraulically. This device operates in the pipe stockyard suspended from a gantry crane.
For the Polar LED pipe line disclosing the Aasta Hansen gas field, we supplied vacuum handling equipment and a double pipe lifter to Mo I Rana port in Norway to load in coated pipes and load out concrete lined pipes. This job is finished now and we were the hands to enable All Seas to set the off-shore pipe laying record of more than 6 km of pipe per day. All the 33.500 pipes produced for this pipeline have been handled with our equipment. Every pipe has been in our hands at least two times.
Having done all this, Suxxesion has designed a tool for easy conversion of a container terminal into a break bulk terminal. We have done this with minor changes to the container spreaders suspended from container bridge cranes, reach stackers, mobile harbor cranes or any other loading means equipped with a container spreader. The possibility of suspending our multi-tool to existing equipment is very interesting when pipeline projects need temporary pipe storage or when construction takes place close to the container terminal for which materials such as steel sheets or concrete elements are required , that come in over seas. In such cases it will not be necessary to arrange for a temporary break bulk terminal, but the local container terminal can be converted very quickly and the investment will be limited to equipment only. The advantage is that infrastructure behind the container terminal such as roads and railways will be available. When the construction or pipe line project is finished, the container terminal can be operated as container terminal after the Suxxesion attachments have been put away. This will not take much time. All pipe manufacturers, coaters and contractors are familiar with vacuum handling equipment. We want to build and supply equipment distinguishing itself through efficiency and low cost of ownership. • For more information about Suxxesion and our many solutions please visit our web-site: www.suxxesion.com Inquiries can be sent directly to: harry@suxxesion.com
The World’s Only Conference Dedicated To Countering Pipeline Tapping, Illegal Bunkering and Oil & Fuel Security Breaches The Oil & Fuel Supply Chain Security Summit, taking place in London, 16-18 April 2019, is the world’s only platform focused on countering a multi-billion dollar threat to government, operator and retailer revenue by preventing fuel fraud, subsidy abuse and securing the supply chain.
T
his institutionalised criminal activity is a serious worldwide problem, diverting billions of dollars away from government funds - estimates suggesting that the total cost to the global economy in 2017 was in excess of $133 billion. Smuggling, laundering and adulteration not only divert state revenues but damage brand integrity and deliver substandard and often harmful products to the market. This multi billion dollar challenge requires effective solutions to accurately identify minimal levels of dilution and differentiated fuels by illuminating the supply chain to isolate both intentional and unintentional fuel manipulation. In April 2018, we provided the first platform to address the mechanisms by which this criminal activity takes place. Our initiative identified that greater attention and efforts are needed in order to prevent oil and fuel products from entering the illegal market. In responding to this, the 2019 conference will deliver additionalexploration of security and surveillance solutions to counter illegal bunkering, ship- to-ship transfers and the tapping of pipelines, storage facilities and
other transportation infrastructure. Attend Oil and Fuel Supply Chain Security to: •
Protect revenue by identifying loss and manipulation within the supply chain
•
Understand new security and surveillance technologies that help ensure the integrity of products in storage and transit
•
Explore solutions from fuel dyes to molecular marking in order to prevent fuel fraud, adulteration and subsidy abuse
•
Protect brand reputation by adopting new quality assurance strategies for LNG, crude oil, lubricants and fuels
•
Gain insight into technology-enabled solutions to improve investigations and prosecutions
•
Enhance your understanding of cyber threats to oil and fuel transportation infrastructure and how to protect the networks
The Oil & Fuel Supply Chain Security Summit. Find out more at: https://oilandfuelsupplychainsecurity.iqpc. com/
46
2019
IMPORTANT EVENTS CALENDAR
SPE Offshore Europe 2019 3-6th September 2019 Aberdeen, Scotland, UK https://www.offshore-europe.co.uk/ International Petroleum Week 2019 26-29th February 2019 London, InterContinental Park Lane https://www.ipweek.co.uk/ ADIPEC 2019 11-14th November 2019 Abu Dhabi, UAE https://www.adipec.com/ AUVSI XPONENTIAL 2019 29 April -02 May 2019 Chicago, IL https://www.xponential.org/xponential2019/public/URLRedirect.aspx?role=U SPE/IADC Drilling Conference & Exhibition 05.03.2019 - 07.03.2019 World Forum | The Hague https://www.spe.org/en/events/drilling-conference/home/ Offshore Technology Conference 6-9 May 2019 Houston, Texas, USA http://2019.otcnet.org/ Global Petroleum Show Calgary, Canada June 11th to 13th 2019 https://globalpetroleumshow.com/ LNG 2019 01.04.2019 - 05.04.2019 Shanghai, China https://www.lng2019.com Gastech Conference & Exhibition 2019 September 17th - 19th Houston, Texas https://www.gastechevent.com/about/ International Rotating Equipment Conference 2019 24.09.2019 - 25.09.2019 Location: Congress Center Wiesbaden, Germany https://www.introequipcon.com/
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