As the leading innovator, we are your competent partner to support you in the challenges brought on by the energy transition. Our technical expertise and a data pool of 40 years’ experience in pipeline industry allow for the best integrity and risk assessments when it comes to introducing future fuels into your asset base. We are at your side for your continued success in a sustainable future. hydrogen.rosen-group.com
Welcome to the July issue of ‘OGV Energy Magazine’ where we explore the theme of Risk Managment. A big thank you to our front cover partner Dräger, who give us an insight into the risks effecting the workplace due to skills shortages and different generational safety knowledge on pages 4 & 5.
We also have contributions from Arnlea, AGR, Intervention Rentals, Flare FSE, Viper Innovations, Brodies and Leyton. The rest of this month’s magazine as always provides you with a review of the Energy sector in the North Sea, Europe, Middle East, the US and Australasia along with industry analysis and project updates from Westwood Global Energy Group, the EIC and Renewables UK.
Warm regards, Dan
Hyland - Director
Skills shortages in the workplace and different generational safety knowledge and training expectations are seen as challenges to workplace safety provision over the next year, a new research study has reported.
Dräger’s latest Safety and Health at Work (2024) report revealed that over three quarters (78%) of people believe that skills shortages in the workforce is an issue in their organisation, while 76% identified a younger workforce with different levels of knowledge, and higher training expectations as areas that businesses need to address in the next 12 months. The majority of those involved in the study (94%) felt that the Health and Safety at Work Act – the UK’s primary piece of legislation covering occupational health and safety which was introduced fifty years
ago – should be overhauled in light of modern working styles and changing workplaces.
More than a third (38%) of those involved in the study believe their employer is ultimately responsible for their health and safety at work, with 27% stating that they feel the Government is predominantly responsible. However, in the younger generation there was more likely to be a belief that the Government is responsible – a third (33%) of Gen Z believing this compared with only a fifth (20%) of the older Baby Boomer generation.
In an industry where competition to attract the best talent is fierce, energy businesses must align with the expectations of the emerging workforce. A comprehensive health and safety provision that includes careful
and thoughtful consideration of factors such as mental health, wellbeing, diversity and inclusion, and Environmental, Social and Governance (ESG) issues, alongside more traditional requirements, is crucial in modern workplaces.
At an operational level, having an effective risk management strategy in place is essential for ensuring safety, regulatory compliance, and operational efficiency. Perceptions of the economic value of safety expenditure can sometimes become obscured. While the value of safety cannot be questioned, the cost of providing it can and investing in the right places is paramount.
With ever growing pressure on efficiencies in oil and gas, how do companies begin to tackle these challenges?
Dräger, a leader in the fields of safety and medical technology, has 135 years’ experience supporting businesses with workplace health and safety, and has experts in the marine and offshore sector providing support on the ground to clients across the oil and gas and renewable energy sectors.
The Safety and Health at Work Report 2024 showed that 93% of respondents expect formal safety training as opposed to simply shadowing or being shown by colleagues. However, only 63% of respondents feel that this expectation is being met by their employer, and from a generational perspective, the study showed that there was widespread agreement (76%) across all generations that younger workers have a higher expectation of training and safety workshops.
As the only safety equipment manufacturer based in Aberdeen, Dräger has helped companies and teams across the energy industry through its recently refurbished base in the city, which includes training facilities for courses such as confined space entry and leg entry, and training courses including Authorised Gas Tester (AGT), Breathing Apparatus (BA) wearer and maintenance training.
Beyond training, it is imperative that staff are provided with suitable and appropriate equipment which meets safety standards. Safety equipment is simply not an area that can be compromised. However, budgets can be used more effectively by employing more efficient solutions and exploring better ways of working.
For example, while many organisations are likely to lease vehicles for business use, and will recognise the cashflow benefits in doing so, they won’t necessarily have considered leasing or renting to fund other capital items such as safety equipment.
Dräger has a vast fleet of safety equipment that can be hired, often at very short notice, reducing overall project costs while utilising the most up-to-date safety equipment which has been serviced by Dräger’s specialist technicians. These technicians are also available to support challenging work scopes and manage the equipment on site, as well as offering any on-site training or maintenance.
Dräger has seen a worrying number of equipment services not being carried out by people who are properly trained to do so. Servicing by trained technicians is vital to ensuring workplace safety across the range of safety equipment, whether for life jackets or breathing apparatus.
Companies need to ensure that the person carrying out the servicing and checks has “appropriate practical and theoretical knowledge and experience of the equipment, as will enable them to detect defects and assess their importance”. It’s not a grey area. This is the law.
Again, this is where hiring can provide a financial benefit to customers, as Dräger ensure all the equipment is serviced to the highest safety standards.
While the digitalisation of processes is helping streamline the delivery of work, the application of digital technology is also helping to make workplaces safer, both onshore and offshore.
Systems that enable the collection of real time data allow safety managers to more easily review the information they require to ensure colleagues are safe – whether it’s checking when a gas detector was last tested and serviced or whether an alarm was acknowledged by another user, they can access the data swiftly regardless of where they are in the world.
Being able to transfer data in real time can reduce errors and save operators both time and costs, and is something Dräger delivers to customers every day.
Robust safety procedures in a high risk sector such as the energy industry is essential.
Keeping people safe and protecting assets is key to operational success While, it can seem a daunting task, expert advice can help direct your focus to what is appropriate for your business.
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Petrofac cures contract default and announces extension to forbearance agreement
Agreement with key EPC customer Petrofac announces that it has reached an alternative agreement with a key customer with respect to the performance guarantee requirements under that contract.
The agreement cures the default notice received from that customer, which required a performance guarantee to be posted by 16 June 2024, as outlined in the company’s 2023 accounts.
The Company continues to require performance guarantees for certain of its other recently awarded contracts. Further announcements will be made as appropriate.
The Group has extended its existing forbearance agreement in respect of the non-payment of the interest coupon on its senior secured notes from 25 July to 23 August 2024.
Proserv completes sponsorbacked MBO and announces employee ownership scheme
Aberdeen/UK-headquartered Proserv has successfully completed a sponsor-backed management buyout (MBO), and is introducing an employee ownership scheme, marking a significant milestone in the company's 60-year history.
Led by CEO Davis Larssen and CFO Mark Fraser, the multi-million pound deal is backed by GIIL, a UK-based investment vehicle of Glenn Inniss, the founder and owner of the GII Finance Group. For the past two years, GIIL (through its subsidiary GII Finance Group), has supported the financing of the business alongside investment funds and accounts managed by its existing shareholders Oaktree Capital Management, L.P. (“Oaktree”) and KKR.
COMET Expands Global Reach with Strategic Partnership in South Korea
COMET, formerly known as STC INSISO, is a UKbased specialist well known for its comprehensive suite of software and services designed to address the unique challenges of high-risk industries such as energy, construction, maritime, rail, utilities, and more.
COMET’s expertise in incident investigation, root cause analysis, supply chain assurance, and regulatory compliance, make them a leader in risk intelligence technology.
COMET is thrilled to announce a strategic channel partnership with RIMS, a prominent safety consultancy firm based in South Korea, working in collaboration with LRQA. This collaboration marks a significant milestone for COMET, expanding its global reach to deliver innovative safety solutions to key industries in South Korea and beyond.
Viper Innovations Achieves Milestone with MBO, Paving the Way for Diversification and Continued Growth
UK-based technology SME Viper Innovations Ltd is pleased to announce its successful change in ownership through a management buyout (MBO) completed on 15 July 2024. This milestone marks a significant step in recognising Viper’s growth story and ensuring its continued stability and expansion into the future.
Viper Directors Edward Davies (Managing Director), Hugo Mansfield (Finance Director), James Carnegie (Sales and Delivery Director) and Rebekah Howard (Operations Director) have acquired a majority shareholding of the group of companies. Cofounders and Directors Neil Douglas and Max Nodder retain a minority stake, as does long-standing investor, partner and customer, Oceaneering International Services Ltd. Neil Douglas will continue as a non-executive director advising the board and acting in an ambassadorial capacity.
STATS Group posts record trading results with further growth forecast in 2024
STATS (UK) Ltd (STATS) has posted record trading results in 2023 with revenues increasing to £74.7 million while EBITDA* earnings rose to £12.1 million, its latest annual accounts show.
The Aberdeenshire pipeline technology company increased revenues by 26% while earnings rose 33% compared to 2022.
Headquartered in Kintore, near Inverurie, STATS principal activity is the provision of pressurised pipeline isolation, hot tapping and plugging services to the global energy industry.
STATS Chief Executive Officer, Stephen Rawlinson, said: “The group has delivered an excellent trading result for the year, with 87% of revenue derived from activities outside the United Kingdom, reflecting our ongoing commitment to develop and invest in localised operations in key international markets.
Cegal hires sustainability profile Celise Skaar as global sustainability lead
Sustainability is fundamental to Cegal's vision of becoming a leading global technology company contributing to a more sustainable future. Hiring Celise Skaar as global head of sustainability further strengthens this area.
Celise Skaar is well known in Norway as a social debater because of her strong commitment to sustainability, equality, and human rights. She comes from a position as a sustainability advisor at BDO and has a master's degree in environmental and resource management from the University of Southern Denmark.cegal
ModuSpec provides a combination of in-depth rig-technology inspection services coupled with operator-minded services to put the rig in the context of well operations.
Established by the founder and original senior management of the independent rig inspection company, who first introduced rig inspection services to the industry in 1986, it supports the upstream industry in drilling wells more safely and efficiently reducing non-productive time and establishing a safe work environment.
www.moduspec.com/
As the world leader in drilling waste management, we harness the power of today and pioneer the technology of tomorrow. Whether onshore or offshore, we turn waste into value and lost time into profit. But above all, we keep you turning.
www.twma.com
We are a casing technology company that provides you with safer and more efficient energy solutions from design through validation and manufacturing. We are designers, we are manufacturers, we are service providers.
www.newlandoiltools.com
GSI has continually expanded and adapted to meet the needs of the ever-changing oil and gas industry. GSI offers unique solutions for the entire life cycle of the well–drilling, completions, production, well intervention, and P&A / decommissioning.
www.gulfstreamservices.com
services,
in the repair and manufacture of blow out preventers, offshore equipment, metal finishing services and maintenance for the onshore hydro electric sector.
www.ajt-engineering.co.uk/
Innovex designs, manufactures, and installs mission-critical drilling & deployment, well construction, completion, production, and fishing & intervention solutions to support upstream onshore and offshore activities worldwide.
www.innovex-inc.com
We are an Aberdeen-based valve maintenance and testing facility, providing the highest levels of expertise and service to ensure your probes are repaired and returned with minimum disruption to your operations. We have the facility to carry out a thorough test and inspection of your probes and have access to a robust supply chain should any replacement parts be required.
www.valvetec-services.com
We are specialists in hydraulic and electrical systems from design to manufacture and refurbishment.
With over 70 years’ combined experience in oil & gas / marine / petrochemical / industrial / renewables and infrastructure sectors, we provide product supply, design & manufacture. Specialised site services, system fault finding, hot oil flushing, instrument pipework installation and testing, as well as complete overhauls of all hydraulic and mechanical equipment.
www.uksp-recruit.ltd
ClearWELL was established in 2017 to deliver proven electromagnetic scale control technology to the international energy market. It supports oil and gas and geothermal wells around the world to operate more efficiently, reducing interventions, workovers and the use of chemicals while improving the OPEX and carbon footprint of each asset.
By Tsvetana Paraskova
The general elections and the new government’s vision for the UK’s energy future dominated headlines in the UK North Sea oil and gas industry in recent weeks.
“UK offshore energy companies could invest £200 billion in homegrown energy production this decade alone in carbon storage, hydrogen, and wind opportunities alongside the homegrown oil and gas we all need.”
Whitehouse continued, “The people in our sector and investors remain deeply concerned over Labour proposals to impose a further windfall tax and end new licences. These policies, if poorly managed, and without industry input will threaten jobs and undermine the decarbonisation of the UK economy.”
“We need the new Labour government to follow through on assurances to work in partnership with the sector, listen to our skilled people, and ensure no one is left behind in the UK’s energy transition.”
A day ahead of the election, OEUK said that if the new government gets it right, “Decarbonisation of the UK economy can be one of the greatest opportunities of our time, with the potential to create wealth across every community in the UK.”
In a report in June, OEUK said that UK energy production is at a turning point which could have a decisive impact on the nation’s future economic growth.
With supportive policy, capital investment in offshore energy could rise by over 50 percent, from £13 billion last year to more than £20 billion by the early 2030s, according to the new Economy & People 2024 report from OEUK.
This investment is crucial for achieving the UK’s net zero goals and securing energy supply, the industry body said.
Offshore energy sector employment is estimated to increase by nearly 50 percent to 225,000 jobs by 2030, the report found.
Following the landslide Labour win in the 4 July election, Offshore Energies UK said it is committed to working with the new government on the next steps to a homegrown energy transition, to safeguard energy security, jobs and skills, and create a favourable investment environment in the UK.
However, the largest offshore industry body warned that “many of the industry’s skilled people and investors remain deeply concerned about Labour proposals for a further windfall tax on home grown oil and gas production and to end new oil and gas licences in UK waters.”
According to the industry association, such measures would not create the investment conditions the UK needs to deliver the homegrown energy transition needed to kick start economic growth.
“The Labour party has put economic growth at the heart of its plans, and our offshore energy sector can deliver just that,” said David Whitehouse, Chief Executive of OEUK.
The new Energy Secretary Ed Miliband set out his priorities for the department after he was appointed as the Secretary of State for Energy Security and Net Zero.
“Our department will be at the heart of the new government’s agenda, leading one of the Prime Minister’s 5 national missions, to make Britain a clean energy superpower with zero carbon electricity by 2030, and accelerating our journey to net zero,” Miliband said.
The new energy secretary’s priorities include: delivering the goal to boost energy independence and cutting bills through clean power by 2030, taking back control of the UK energy with the creation of Great British Energy, upgrading Britain’s homes and cutting fuel poverty through our Warm Homes Plan, and standing up for consumers by reforming our energy system. The other two priorities are creating good jobs in Britain’s industrial heartlands, including a just transition for the industries based in the North Sea, and leading on international climate action, based on the UK domestic achievements.
Currently, the sector supports over 150,000 jobs directly or indirectly, with almost 80 percent of these in oil and gas. Additionally, the oil and gas industry alone contributes approximately £25 billion to the UK economy, supporting 1 in every 160 jobs nationwide, and around 1 in 30 jobs in Scotland. The sector has also paid £450 billion in production taxes over the past 50 years, OEUK said in the report.
“Our report shows that the offshore industry could invest £450bn in UK energy by 2040. The path to success is a homegrown energy transition that puts people at the heart of it, builds on our industrial strengths and drives collaboration across sectors,” OEUK’s Whitehouse said, commenting on the report.
The North Sea Transition Authority (NSTA) said in early July that the Annual Consents Exercise (ACE), which sets limits on North Sea flaring and venting and helps to improve the UK’s energy position, had got underway.
NSTA aims for all consents to be issued by 13 December 2024.
Consents set minimum and maximum production limits for each field, and ensure, among other things, that reservoirs are appropriately managed and support the drive to net zero and the management of UK resources.
An enhanced digital system is expected to streamline the process for applicants and communication with NSTA, the authority said.
‘Energy patriotism’ could slash UK homes’ foreign energy dependence by 80 percent, while new North Sea oil and gas would be ‘largely irrelevant’ for Britain’s energy security, Energy & Climate Intelligence Unit said in a report published in late June.
For UK households that predominantly use fossil fuels, energy imports are set to rise further by 2030 and beyond, as UK production of oil and gas declines, irrespective of new licences, the report found.
“The only way that households can become less reliant on imported energy and boost their use of UK energy is to adopt technologies that cut oil and gas demand – primarily energy efficiency, electric heat pumps and electric vehicles,” the authors of the report wrote.
In company news, Deltic Energy Plc said it was unable to secure a farm-out or an alternative funding solution for its Pensacola stake and said the only appropriate course of action available to it is to withdraw from the licence prior to further liabilities being crystallised.
Deltic Energy cited deteriorating sentiment towards the oil and gas industry as a result of ongoing fiscal volatility and negative political rhetoric in the runup to the July election as contributing to its inability to secure funding for its share of the Pensacola licence operated by Shell.
Separately, Deltic Energy announced in July that it had accepted one of the two licences that were provisionally awarded by the NSTA in Tranche 3 of the UK’s 33rd Offshore Licensing Round. Licence P2672, in which Deltic has a 100-percent working interest, is located immediately to the west of the West Sole gas field and contains the Pharos and Teviot discoveries. Deltic’s preliminary evaluation, completed as part of the application process, has resulted in an updated understanding of the structural setting, which suggests that the Pharos discovery and the Blackadder prospect are in fact a single Leman Sandstone structure, the company said.
Subsea7 has been awarded a sizeable contract –between $50 million and $150 million – by Dana Petroleum, for the Bittern field development 190 km east of Aberdeen in the UK Central North Sea, at a water depth of 90 metres.
The contract scope includes project management, engineering, procurement, construction and installation (EPCI) of a 22-km 12” water injection pipeline. Subsea7’s scope also includes associated subsea structures and tie-ins at the Triton Floating Production Storage & Offloading (FPSO) vessel and the Bittern field.
TotalEnergies has signed an agreement to sell to The Prax Group its entire interest in West of Shetland assets in the United Kingdom. These include Laggan, Tormore, Glenlivet, Edradour, and
Glendronach fields, the onshore Shetland Gas Plant, and nearby exploration licenses. These mature assets currently produce about 7,500 barrels of oil equivalent per day in TotalEnergies’ share, made up of around 90 percent of gas.
The sale of the West of Shetland assets is in line with TotalEnergies’ strategy to adapt its portfolio by divesting mature non-core assets, said JeanLuc Guiziou, Senior Vice President Europe for Exploration & Production at TotalEnergies.
“TotalEnergies remains committed to the UK through both its upstream portfolio in the North Sea (ElginFranklin, Culzean and Alwyn fields) and its Integrated Power and Renewables portfolio,” Guiziou added.
Serica Energy’s chairman David Latin criticised the UK’s energy profits levy and the uncertainty for operators in the UK North Sea during his speech at the Annual General Meeting at the end of June.
Commenting on the macro issues facing UK North Sea producers today, Latin said “I have been involved in this industry for more than 30 years and have worked all over the world. Other than when I was responsible for a company which had significant assets in a war zone, I have never encountered a situation which was so challenging when it comes to making investment decisions, and planning for the future more generally, as it is in the UK at present.”
“Without continued investment in our homegrown oil and gas sector, the gap between UK production and consumption will only widen, to be filled inevitably by imports,” the executive added.
THREE60 Energy said it would buy subsea engineering company Samphire Subsea in a deal that will enhance THREE60’s range of capabilities across the energy services industry.
“Combining Samphire’s expertise in subsea engineering and project management with our proprietary subsea flexibles and riser technology offers the opportunity to better support our increasing subsea customer base across offshore oil and gas, the maturing decommissioning and the growing renewables industries,” said Walter Thain, Group CEO of THREE60 Energy.
Prosafe has announced that it has been issued a Letter of Intent (LoI) from Ithaca Energy for the charter of the Safe Caledonia to provide gangway connected accommodation support at the Captain field in the UK North Sea. The firm duration of the contract commencing June 2025 is six months with up to three months of options and final contract award is subject to meeting certain site specific technical criteria.
“The reactivation and commitment of the Safe Caledonia reflects the continued tightening of the accommodation market in the North Sea and globally,” Prosafe chief executive officer Terje Askvig said in a statement.
By Tsvetana Paraskova
Exploration and further development of Norway’s offshore oil and gas resources, the implications of Labour’s win on the UK energy industry, and the start of many low-carbon projects featured in the European energy sector over the past month.
Equinor and its partners Petoro, Vår Energi, and TotalEnergies EP Norge started production from the first Lavrans well in the Kristin South area on 7 July.
This is the first phase of the Kristin South project, for which the partnership submitted the plan for development and operation (PDO) of the Lavrans and Kristin Q discoveries as satellites to the Kristin field in 2021. A new subsea template has been installed and tied into the Kristin platform, now processing oil and gas from the first well at the Lavrans field, Equinor said. The gas will be exported through the pipeline system to the European market, while the oil will be transported to the market by ship via the Åsgard C storage vessel.
Four additional wells are planned as part of the first phase of the Kristin South project, three at the Lavrans field and one in the Q-segment at the Kristin field.
Allseas has said it would install the pipeline and integrated structures for the second development stage of Equinor’s Troll Phase 3 project that will accelerate the production and contribute to maintain the high production capacity utilisation of Troll A Platform and Kollsnes onshore plant towards 2030. Phase 3 development will enable gas production from the Troll West field via subsea tiebacks to the original Troll A platform, northwest of Bergen, Norway.
BlueNord ASA has announced that drilling operations on the Harald East Middle Jurassic well (HEMJ) have commenced with the well successfully spudded by the jackup rig Shelf Drilling Winner.
The HEMJ was spudded in the Harald East area, located close to the Norwegian border and the gas will be exported through the Tyra East facilities. In a success case, the well
could deliver production by the end of 2024. The expected gain from the well is estimated to be up to 8 mmboe net to BlueNord of which approximately 80 percent is expected to be gas.
German energy giant Uniper terminated on 12 June its long-term Russian gas supply contracts and thus legally ended the longterm gas supply relationship with the Russian state-owned company Gazprom Export. The decision was made possible after an arbitration tribunal on June 7 awarded Uniper the right to terminate the contracts and awarded it an amount of more than €13 billion in damages for the gas volumes not supplied by Gazprom Export since mid-2022.
Uniper suffered substantial losses due to the Russian gas supply restrictions in 2022, and the company initiated arbitration proceedings against Gazprom Export at the end of 2022.
Commenting on the landslide Labour victory in the UK elections, RenewableUK Chief Executive Dan McGrail said, “Labour’s resounding election victory gives them a clear mandate to deliver their clean energy mission, and we look forward to working closely with the new government to speed up the pace of renewable energy development, with a focus on maximising the industrial and job opportunities the sector offers the UK.”
The first steps Labour could take include lifting the effective ban on onshore wind in England and increasing the budget for this year’s Contracts for Difference auction to
enable new wind, solar, and tidal clean energy projects to go ahead, McGrail added.
In one of its first actions, the new UK government did indeed remove the de facto ban on onshore wind, and is currently revising planning policy to place onshore wind on the same footing as other energy development in the National Planning Policy Framework (NPPF).
The government is committed to doubling onshore wind energy by 2030.
According to RenewableUK research, delivering 30 GW of onshore wind by the end of the decade would boost the economy by £45 billion and create 27,000 jobs.
RenewableUK also said in a new report on 8 July that Labour’s plans to set up GB Energy as a state-backed company to invest in new renewable energy projects can play a positive role in supporting emerging technologies and the transition to clean power, as long as it is set up in a way that does not disrupt the energy market.
The report, compiled by consultants Public First, recommends that Labour now outlines a clear vision for GB Energy (GBE) as soon as possible, so that it can begin operating within the next 12 months.
The report suggests that GBE should focus initially on investing in onshore wind and solar projects, as these are quick to build and bring stable revenues.
However, the report is also clear that Labour should also maintain a focus on unlocking the billions of pounds of private sector investment which will be required to deliver Labour’s clean energy mission, including over £100 billion of private investment needed to deliver Labour’s target of 60 gigawatts (GW) of offshore wind by 2030.
The UK retained its second position in global offshore wind capacity behind China, a RenewableUK report showed. China and the UK kept their top positions with 36.7 GW and 14.7 GW operational capacity, respectively. Germany is third with 8.3 GW, the Netherlands fourth with 3.7 GW and Denmark fifth with 2.7 GW.
China also has the largest pipeline (227 GW), with the UK second at 96 GW across 122 projects in UK waters. The USA is in third place with 94 GW, followed by Sweden with 68 GW and Brazil fifth with 61 GW of planned offshore wind capacity.
Germany, Great Britain, the Ireland I-SEM, and Poland emerge as the top four European markets for renewables co-location, a report by Aurora Energy Research showed in June.
“Great Britain stands out due to favourable regulation, granting co-located assets access to multiple markets and offering faster grid access for co-located RES projects,” Aurora’s analysts wrote.
Rystad Energy research and modelling have shown that 137 substations will be installed offshore continental Europe this decade, requiring $20 billion in total investment. More than 120 of these facilities will be installed between 2024 and 2030 at a cost of around $18 billion, the independent energy research and business intelligence company said in June.
In Germany, the latest offshore wind auction saw TotalEnergies, as shareholder of Offshore Wind One GmbH, winning a lease in the North Sea to develop 1.5 GW, while the other concession area went to EnBW to develop a 1-GW offshore wind farm in the German North Sea.
Germany’s onshore wind auction saw bids submitted for nearly 2.5 GW, setting a new record, the federal networks agency, Bundesnetzagentur, said in early July. The auction resulted in 189 bids with a total volume of 2,379 MW being awarded.
“If this positive trend continues then the expansion targets for onshore wind are within reach,” said the agency’s president Klaus Müller.
In company news, Ocean Winds marked the first export of power from the Moray West offshore wind farm on the way to fully commissioning the project. The 882-MW wind farm is nearing the end of the construction phase and will become fully operational in 2025 in line with the originally projected commercial operations date, the company said in early July.
Ørsted has decided to invest in a battery energy storage system co-located with the Hornsea 3 Offshore Wind Farm that will help provide stability to the UK energy supply and reduce price volatility. The Tesla battery storage system, on which Ørsted has now taken final investment decision, has a capacity of 600 MWh (and a 300 MW power rating), equivalent to the daily power consumption of 80,000 UK homes. When complete, the battery energy storage system will be one of the largest in Europe. It is expected to be operational by the end of 2026, Ørsted said.
Wood has been awarded a contract by Centrica Energy Storage (CES) for the redevelopment of the UK’s Rough field in readiness for future hydrogen storage. The Rough reservoir, located in the Southern North Sea, has been used to store natural gas safely for over thirty years and has the potential to provide over half of the UK’s hydrogen storage requirements.
Specialist sustainability consultancy ERM and Dolphyn Hydrogen have launched the UK’s first offshore hydrogen production trials in South Wales.
Shell said in early July it would temporarily pause on-site construction work at its 820,000 tonnes a year biofuels facility at the Shell Energy and Chemicals Park Rotterdam in the Netherlands, “to address project delivery and ensure future competitiveness given current market conditions.”
“Temporarily pausing on-site construction now will allow us to assess the most commercial way forward for the project,” said Huibert Vigeveno, Shell’s Downstream, Renewables and Energy Solutions Director.
50Hertz inaugurated on 3 July Europe’s largest solar power plant, the Witznitz Energy Park, with an installed output of 650 MWp. The park was built on a former lignite mining site south of Leipzig, Germany.
Zeevonk, a joint venture of Vattenfall and Copenhagen Infrastructure Partners (CIP) through its Energy Transition Fund, has been awarded a permit to build the IJmuiden Ver Beta wind farm in the Netherlands. This 2-GW offshore wind project will include a 50 MWp floating offshore solar farm on site and a new electrolyzer at the Port of Rotterdam which will convert electricity of IJmuiden Ver to green hydrogen.
Maersk is launching Maersk Offshore Wind, a new company to accelerate offshore wind deployment, the Denmark-based firm said on 2 July.
Maersk Offshore Wind plans to provide installation services to the offshore wind market based on a new and state-of-the-art offshore Wind Installation Vessel (Maersk WIV) concept.
“Maersk Offshore Wind’s concept can reduce the installation time of offshore wind turbines by almost one-third, delivering energy to the grid faster and lowering total installation costs increasing the competitiveness of our customers when they bid for new projects,” said Martin Larsen, CFO of A.P. Moller Holding and Chair of Maersk Offshore Wind.
Equinor has been awarded its first CCS exploration permit in Denmark as operator, together with partners Ørsted and Nordsøfonden. The partnership will start surveys to assess if the onshore licence in North West Zealand can be developed into a safe CO2 storage facility.
Norway’s Energy Ministry has announced offers for four new exploration licences for CO2 storage in the Norwegian part of the North Sea. Two of the licences are offered to Equinor, one to a group consisting of Vår Energi ASA, OMV (Norge) AS, and Lime Petroleum AS, and one licence is offered to a group consisting of Aker BP ASA and PGNiG Upstream Norway AS.
The Norwegin Ministry of Energy has also launched public consultation on a proposal for the first licensing round for seabed minerals on the Norwegian continental shelf.
“The world needs minerals for the green transition, and the government wants to explore if it is possible to extract seabed minerals in a sustainable manner from the Norwegian continental shelf,” Energy Minister Terje Aasland said, adding that the ministry plans to award licenses in the first half of 2025.
By Tsvetana Paraskova
Oil and gas activity in the top US oilproducing shale basin, the Permian, grew slightly in the second quarter of 2024, as output remained essentially unchanged, the quarterly Dallas Fed Energy Survey showed at the end of June.
Half of executives at US oil and gas firms in the Eleventh District—Texas, southern New Mexico and northern Louisiana—said in the survey that their firms do not use artificial intelligence (AI) and do not plan to do so in the near future. Shale bosses also see the ongoing consolidation wave among exploration and production (E&P) companies to have either no impact or to lead to slightly lower US oil and gas production over the next five years.
Activity in the oil and gas sector in the Eleventh District grew in the second quarter of 2024, according to oil and gas executives responding to the Dallas Fed Energy Survey The business activity index, the survey’s broadest measure of the conditions, increased from 2.0 in the first quarter to 12.5 in the second quarter.
Oil and gas production was little changed in the second quarter, according to executives at E&P firms. The oil production index advanced from -4.1 in the first quarter to 1.1 in the second quarter. The near-zero reading suggests production was essentially unchanged, Dallas Fed said.
Meanwhile, the natural gas production index also turned positive, but barely so, rising from -17.0 in the first quarter to 2.3 in the second quarter of the year.
Costs rose at a slightly faster pace for oilfield services, but at a slower pace for E&P firms.
Looking ahead, the survey’s company outlook index was essentially unchanged at 10.0. The outlook index was 16.8 for E&P firms compared with -2.1 for services firms, suggesting modest optimism among E&P firms and a neutral outlook among services firms. The overall outlook uncertainty index was unchanged at 24.1, suggesting uncertainty continued to increase on net.
On average, respondents expect a West Texas Intermediate (WTI) oil price of $79 per barrel at year-end 2024, with responses ranging from $62.50 to $100 per barrel. When asked about longer-term expectations, respondents on average expect higher prices in the medium term—a WTI oil price of $83 per barrel two years from now and $88 per barrel five years from now.
Respondents in the survey were also asked to share their experience with and thoughts on AI.
Fifty percent of executives said their firm is not using AI and has no plans to do so in the near future. A total of 26 percent of executives note their firm is using either traditional AI, generative AI, or both. The remaining 24 percent of executives said their firm is currently not using AI but plans to do so in the next 12 months.
Large firms tend to use AI more than smaller E&P companies, while small E&P firms are also more likely than large E&P firms and services firms to indicate they have no plans to use AI in the near future, the survey showed.
Of those using AI, the most selected response to how they use the technology was “business analysis or predictive analytics” (64 percent of respondents) followed by “process automation” (44 percent of respondents). Both “geology or reservoir engineering” and “predictive maintenance” were selected by 41 percent of respondents.
operate much more efficiently, the service companies will suffer until the service market shrinks to match fewer operators more efficiently operating,” the executive added.
“Permitting
and bureaucratic or political roadblocks are the greatest impairments to our business currently”
The Dallas Fed Energy Survey also tracked executives’ views on how the industry consolidation would impact US oil and gas production five years from now.
Oil production would be “slightly lower” was the most-selected response, 48 percent of respondents, followed by “no impact” (22 percent of respondents) and “slightly higher” (22 percent of respondents). All executives from E&P firms that produce 100,000 barrels per day (bpd) or more selected “no impact,” the survey found.
The low natural gas prices at the Waha hub in Texas are expected to have no impact or a slightly negative impact on the companies’ drilling and completion plans in the Permian for the rest of 2024, executives said in the survey.
In free-text comments to the survey, many respondents said that increased regulation and overregulation are hurting their investment plans, and increasing regulatory constraint has increased expenses.
“Permitting and bureaucratic or political roadblocks are the greatest impairments to our business currently,” one executive at an E&P firm said.
Another one wrote, “Candidate Trump has promised to lower the price of oil. He may again seek the help of Saudi Arabia to do this. If so, then I will expect a lower oil price and another recession in the U.S. oil patch.”
An executive at an oil and gas support services firm noted that “oil and gas operator consolidation is squeezing an over-supplied vendor market for all services, which will require consolidation or extensive bankruptcy in the vendor pool to rightsize the market.”
“While this consolidation is ultimately good for the consumer as the larger oil companies
The American Petroleum Institute (API) filed in June a lawsuit in the D.C. Circuit Court of Appeals challenging the US Environmental Protection Agency’s (EPA) light-duty and medium-duty vehicle emissions standards for model years 2027-2032.
In March, the Biden Administration finalized new federal vehicle emissions standards for light- and medium-duty vehicles that require 68 percent of new passenger vehicles and 43 percent of new medium-duty trucks and vans to be electric by 2032.
The National Corn Growers Association, American Farm Bureau Federation, and a group of six auto dealers representing sixteen brands and collectively operating dozens of dealerships joined API as co-petitioners in the lawsuit.
“Today, we are taking action to protect American consumers, U.S. manufacturing workers and our nation’s hard-won energy security from this intrusive government mandate,” API Senior Vice President and General Counsel Ryan Meyers said
“EPA has exceeded its congressional authority with this regulation that will eliminate most new gas cars and traditional hybrids from the U.S. market in less than a decade. We look forward to making our case in court.”
API also challenged the EPA’s heavy-duty vehicle emissions standards in a lawsuit in the D.C. Circuit Court of Appeals.
“This rule would devastate the reliability of America’s supply chain and ultimately increase costs for consumers,” said OwnerOperator Independent Drivers Association President Todd Spencer.
“Mom and pop trucking businesses would be suffocated by the sheer cost and operational challenges of effectively mandating zero emission trucks, but this administration appears intent on forcing through its deluge of misguided environmental mandates.”
Apart from challenging federal vehicle emissions regulations in court, API unveiled a new policy roadmap to bolster America’s energy security and help reduce inflation.
The largest oil and gas association in the US proposes five actions policymakers can take to cement American energy leadership, protect consumers, and help reduce inflation. These steps are protect consumer choice, restore the role of American energy in bolstering the geopolitical strength, leverage the abundant natural resources, fix the broken permitting system, and advance a sensible tax policy.
“As the world’s largest producer of oil and natural gas, we bring stability in a time of chaos, making our industry the envy of the world,” API President and CEO Mike Sommers said.
“Reliable, affordable energy policy will support American families and businesses in the fight against inflation,” Sommers added.
“Yet misguided policies and heavy-handed regulations, particularly over the past four years, threaten to undermine our existing energy advantage, potentially increasing costs and jeopardizing a key pillar of American leadership.”
By Tsvetana Paraskova
OPEC reiterated its forecast of robust oil demand growth in the summer and the whole of 2024, while the biggest national oil companies in the Middle East moved to significantly expand their international footprint in the LNG industry.
In its monthly report in July, OPEC revised up slightly its outlook for global economic growth and kept its forecast of strong oil demand growth this year.
The 2024 global oil demand growth forecast remained unchanged at 2.2 million barrels per day (bpd) compared to the previous month’s assessment. The OECD oil demand in 2024 is expected to expand by around 200,000 bpd, while the non-OECD demand is set to grow by around 2.1 million bpd. In 2025, global oil demand is expected to see robust growth of 1.8 million bpd year-over-year, also unchanged from the previous month’s forecast.
There were some downward adjustments for the first quarter of 2024 due to actual data from the OECD region, but this was offset by a better-than-expected performance in the same quarter in some non-OECD countries, OPEC said.
“Expected strong mobility and air travel in the Northern Hemisphere during the summer driving/holiday season is anticipated to bolster demand for transportation fuels and drive growth in the US,” said the organization dominated by the biggest oil exporters in the Middle East.
“In addition, expected improvements in manufacturing and petrochemical activities are expected to support the demand for LPG/ NGL, lending additional support to oil demand in the country.”
Oil demand in Europe and the Asia Pacific region is also expected to pick up this year, amid stronger mobility and improving economic development.
As a result, world oil demand is anticipated to reach 104.5 million bpd in 2024, bolstered by strong demand for air travel and healthy road mobility, including trucking, according to OPEC.
Demand will also be supported by industrial, construction, and agricultural activities in nonOECD countries. In addition, petrochemical capacity additions in the non-OECD region–mostly in China and the Middle East – are expected to contribute to oil demand growth.
Saudi state oil giant Aramco and Abu Dhabi’s national company ADNOC have announced in recent weeks a number of deals to expand their domestic gas offering and global footprint in the liquefied natural gas (LNG) sector.
Aramco has awarded contracts worth more than $25 billion to progress its strategic gas expansion, which targets sales gas production growth of more than 60 percent by 2030, compared to 2021 levels.
The contracts relate to phase two development of the huge Jafurah unconventional gas field, phase three expansion of Aramco’s Master Gas System, new gas rigs, and ongoing capacity maintenance.
The company has awarded 16 contracts, worth a combined total of around $12.4 billion, for phase two development at Jafurah. The work will involve construction of gas compression facilities and associated pipelines, expansion of the Jafurah Gas Plant including construction of gas processing trains, and utilities, sulfur and export facilities.
The Jafurah unconventional gas field is estimated to contain 229 trillion standard cubic feet of raw gas and 75 billion Stock Tank Barrels of condensate. Aramco expects total overall lifecycle investment at Jafurah to exceed $100 billion and production to reach a sustainable sales gas rate of two billion standard cubic feet per day by 2030, in addition to significant volumes of ethane, NGL, and condensate.
Another 15 lump sum turnkey contracts, worth a combined total of around $8.8 billion, have been awarded to commence the phase three expansion of the Master Gas System, which delivers natural gas to customers across the Kingdom of Saudi Arabia.
Additionally, 23 gas rig contracts worth $2.4 billion have also been awarded, along with two directional drilling contracts worth $612 million.
The Saudi firm also announced a non-binding Heads of Agreement (HoA) with US company NextDecade Corporation for a 20-year liquefied natural gas agreement for offtake from Train 4 at NextDecade’s Rio Grande LNG Facility at the Port of Brownsville, Texas, USA. Aramco expects to purchase 1.2 million tonnes per annum (MTPA) of LNG for 20 years on a free on board basis, at a price indexed to Henry Hub. Aramco and NextDecade are currently in the process of negotiating a binding agreement, and once executed, the effectiveness of the deal will be subject to a positive Final Investment Decision on Train 4.
In another deal with a US company, Saudi Aramco signed a similar heads of agreement with Sempra for a 20-year LNG offtake of 5.0 million tonnes per annum from the Port Arthur LNG Phase 2 expansion project. The agreement further contemplates Aramco taking a 25-percent participation in the project-level equity of Phase 2.
“As a potential strategic partner in the Port Arthur LNG Phase 2 project, Aramco is well placed to grow its gas portfolio with the aim of meeting the world’s growing need for lower-carbon sources of energy,” said Nasir K. Al-Naimi, Aramco Upstream President.
“This agreement is a major step in Aramco’s strategy to become a leading global LNG player.”
In the United Arab Emirates, ADNOC announced in June the final investment decision for the Ruwais LNG project, which will be located in Al Ruwais Industrial City in Al Dhafra region of Abu Dhabi. This will be the first LNG export facility in the Middle East and North Africa (MENA) region to run on clean power, making it one of the world’s lowestcarbon intensity LNG plants, ADNOC says.
A few weeks after the FID, the Abu Dhabi company signed agreements with bp, Mitsui & Co., Shell, and TotalEnergies for each to be awarded a 10-percent stake in the Ruwais LNG project. ADNOC will retain a 60-percent interest.
Separately, ADNOC has signed several new long-term LNG sales commitments with international partners, including for the delivery of 1 mtpa with Shell and 0.6 mtpa with Mitsui & Co., taking the committed Ruwais LNG production capacity to 70 percent.
“As natural gas demand continues to increase, this world-class project will enable us to provide more lower-carbon gas to meet growing demand today while helping the world transition to a cleaner energy future,” said Sultan Ahmed Al Jaber, ADNOC Managing Director and Group CEO.
(Credit: ADNOC)
Shell's CEO Wael Sawan commented, “In line with our strategy to create more value with less emissions, we are investing in additional LNG capacity and further growing our worldleading LNG portfolio, with energy-efficient and carbon-competitive projects.”
In the field of technology to assist energy operations, ADNOC and global technology group e& announced in early July a strategic project to build the energy industry’s largest private 5G wireless network, spanning 11,000 square kilometres. The 5G network will deliver high-bandwidth connectivity across ADNOC’s onshore and offshore operations, enabling the company to further integrate its advanced artificial intelligence (AI) solutions at its most remote facilities and reduce costs through automation, improve efficiency, minimize emissions, and enhance the safety of its people.
In Qatar, state firm QatarEnergy backed the initiative of interim dividends distribution by the companies that are listed on Qatar Stock Exchange in which QatarEnergy is a shareholder, as part of its commitment to maximise the value to shareholders.
QatarEnergy has also entered into a long-term agreement to supply Haldia Petrochemicals Limited (HPL) – one of India’s largest petrochemical companies, utilizing naphtha as its primary feedstock – with a total of up to two million tons of naphtha to be delivered over ten years starting in the second quarter of 2024.
QatarEnergy struck a similar deal with Japanese refining and petrochemical company ENEOS Corporation. Under the agreement, QatarEnergy will supply ENEOS with up to 9 million tons of naphtha over 10 years starting July 2024.
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Brent Oil Column July 2024 Today's Price $82.978*
1 YEAR AGO
1 Year Ago - $87.40
Oil prices settled lower in August, with Brent crude holding close to January highs, as speculation about another U.S. interest rate hike faded following inflation data and OPEC remained positive on the oil demand outlook. Oil prices were boosted by extensions to output cuts by Saudi Arabia and Russia.
5 YEARS AGO
5 Years Ago - $57.13
Shell’s profits plunged to their lowest in three years due to lower oil and gas prices. Their second quarter profits dropped 25% to $3.6bn, far below analysts' expectations of $4.9bn. The oil giant blamed "challenging macroeconomic conditions" in refining and chemicals, as well as falling oil prices.
10 YEARS AGO
10 Years Ago - $101.44
Oil was having what was described as a “brutal summer” despite unrest in some of the world’s top oil-producing countries, with abundant supply and sluggish demand continuing to weigh on prices. Brent crude was down 6% over the previous three months, and 12% since a brief June run-up.
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OneSubsea has been awarded a contract for a 13-well subsea production system including associated equipment and services. The work scope includes assembly, manufacturing of modules, installation, commissioning, and life-of-field services.
A final investment decision for the project was announced on the 20 June. The Ubeta gas condensate field will be developed with a new 6-well cluster connected to the existing Obite facilities through a 11 km buried pipeline.
Doris Engineering has been awarded Zama's FEED contract. Doris will be working with Mexican engineering firms Nomarna Construcciones and Summum Projects to carry out the FEED work. Once FEED studies are finished, the developers will proceed with selecting an EPC contractor followed by FID. No deadline for the completion of FEED has been disclosed.
A final investment decision has been taken on the field which is slated to start production in 2027. Once online, Manatee is expected to reach peak production of approximately 104,000 barrels of oil equivalent per day (boe/d) (604 MMscf/d).
The operator is continuing with the FEED project and various procurement processes. Gas production from the Tuna Block is scheduled to begin in Q4 2026, with a production rate of 135 MMcf/d. Oil production is expected to start in Q4 2028, with an average production of 20,000 b/d.
The operator has announced an oil discovery on Block 9 after drilling the Yopaat-1 exploration well. The well, located in a water depth of 525 metres, was drilled by the Valaris DPS-5 semi-sub rig to a total depth of 2,931 metres. According to Eni, a 200-metre net pay of good quality oil was identified in Pliocene and Miocene-aged reservoirs. The Yopaat discovery may contain 300-400 million barrels of oil equivalent in place.
NOPSEMA has approved the environment plan (EP) for Woodside, to decommission in situ selected equipment within the field. The EP comprises the decommissioning of 10 suction base foundation piles, nine anchors, and a historical exploration wellhead buried in the seafloor that will be left behind in-situ. Woodside anticipates to resume production of oil in March 2025 once the decommissioning of equipment is completed.
CNOOC reported that they have successfully discovered gas at Lingshui 36-1, western South China Sea. The discovery lies in water depth of approximately 1,500 m. The operator reported that the field had flowed gas during an open hole test at 335.15 MMcf/d.
NextChem has been awarded a contract to act as the technology design integrator to develop the process design package (PDP) for the project's carbon dioxide recovery and hydrogen unit.
A commercial oil and gas discovery has been made at the Cerisa exploration well and three additional side-track appraisal wells in PL 636 north of the Duva and Gjøa fields. The wells were drilled by the Deepsea Yantai semi-submersible drilling rig. Preliminary reserve estimates indicate between 18-39 million barrels of oil equivalent (mmboe) were discovered. Cerisa will be considered as a tie-back to the Gjøa platform.
ExxonMobil has selected the Hammerhead field as Stabroek's seventh development phase. A 180,000 b/d FPSO is expected to be deployed at the field, with first oil targeted in 2029. ExxonMobil has filed the project's plans for environmental authorisation with the Environmental Protection Agency (EPA).
The project has been awarded €131 million from the CEF as part of the 5th PCI scheme. The funding aims at expanding from 1.5 Mtpa to over 5 Mtpa the CO2 storage capacity of the Northern Lights Initiative. The present CEF works project aims to accelerate the P2 expansion timeline in line with the startup of the most mature capture initiatives in the EU, planned by early 2028.
managing a plethora of risks, which have only multiplied in recent years.
AsThe energy industry is managing a plethora of risks, which have only multiplied in recent years.
From safety and asset management to political and geopolitical risks, and environmental and reputational risks, the energy sector has stepped up risk assessment, management, and control to continue smooth and safe operations and ensure the energy supply the world needs. Amid geopolitical tensions, cyber security risks have also become prominent in recent years, while the conflicts in Ukraine and the Middle East have added to supply chain cost risks amid changed trade flows and routes for delivery of oil and gas and raw materials for new energy projects.
Careful and successful risk management improves safety and mitigates operational risks of spills, explosions, and accidents.
By Tsvetana Paraskova
It also boosts financial performance as it could avoid losses and ensures regulatory compliance with all relevant authorities.
The assessment and management of various risks could also streamline processes and improve decision making by identifying potential risks and opportunities. Companies have operations management systems to help them verify process safety or flag potential hazards. Many firms in the energy sector have started to use various forms of AI for visual analysis, operations connected with Internet of Things (IoT) applications, and digital twins, for example, to identify, assess, and mitigate potential risks.
Digital twins, for example, have been gaining rapid acceptance in oil and gas operations, data and analytics company GlobalData said in a report in May.
These digital representations of energy assets can help detect, prevent, predict, and optimize the physical environment using AI, realtime analytics, visualization, and simulation tools. In the case of oil and gas, digital twins can support the entire project lifecycle from the project design to commissioning, GlobalData says.
Digital twins can effectively simulate the management of an oil and gas asset and forecast potential scenarios. They also have the capability to dynamically model the performance of the asset in real time.
GlobalData estimates that the global market of digital twins technology will be worth $154 billion by 2030, up from about $20 billion in revenues from digital twins services and software this year.
Initially, digital twins were deployed in capitalintensive oil and gas production facilities to streamline processes, mitigate emission footprint, and generate cost savings.
“Another emerging use case is in supply chain and inventory management, where products can be tracked in real-time to ensure their timely availability for end use applications. This would help in streamlining logistics costs and maintain product quality for end consumers.”
In a separate report, GlobalData found that Saudi Aramco, the world’s largest oil company by both production and market value, is spearheading innovations in the industry by embracing cutting-edge technologies like AI, both within its core operations and beyond, which places the company ahead of the curve
The Saudi state oil giant has significantly invested in research and development (R&D) compared to its industry peers, allocating about $3.5 billion in 2023, which represents a 15-percent annual increase despite global challenges. Aramco is involved in more than 250 areas of innovation, spanning technologies poised to disrupt the oil and gas sector, such as AI, drones, robotics, electric vehicles (EVs), and hydrogen technology, GlobalData says.
Aramco is a leader in utilizing AI for oil exploration and underwater operations, fault monitoring, and drone control, according to GlobalData’s Technology Foresights.
“When it comes to AI solutions for the oil and gas industry, North America continues to lead because of its enormous reserves and technological expertise..."
Companies have recently created twins of their pipeline systems, gas plants, LNG terminals, as well as refineries and petrochemical complexes, GlobalData notes.
“Digital twins are rapidly becoming a mainstay in oil and gas operations as companies strive to optimize asset performance and minimize unplanned outages. This aims to make oil and gas operations relatively safer while lowering the carbon footprint and improving profitability,” commented Ravindra Puranik, Oil and Gas Analyst at GlobalData. “Besides, companies are also deploying these tools for remote monitoring and predictive maintenance, among other benefits.”
Moreover, oil and gas companies are exploring using the digital twins technology for their newer ventures beyond oil and gas, including in carbon capture and storage (CCS) and renewable power projects.
“There is considerable potential for digital twins in improving the efficiency and effectiveness of CCS projects and to predict the power output from wind or solar farms,” GlobalData’s Puranik said.
Across the oil and gas industry, AI is mostly used for predictive maintenance a recent poll by GlobalData has found.
The survey, conducted between November 2023 and January 2024, showed that 41 percent of respondents believe that AI is having the greatest impact on predictive maintenance, analyzing equipment in real time. Another 28 percent see AI impacting the most operations of smart monitoring by tracking emissions profiles and energy consumption. Further 25 percent of respondents believe AI has the greatest impact on forecasting energy production and promoting price stability.
The applications and the market for AI technology, including in various aspects of risk management, is only set to grow in the coming years, analysts say.
AI is one of these advancements in the oil and gas industry that has really changed the game in recent years, transforming every facet of the industry from production and exploration to distribution and refining, BCC Research said in an analysis in May.
The global market for AI technology in the oil and gas sector is estimated to increase from $2.8 billion in 2023 to $5.1 billion by 2028, rising at a compound annual growth rate (CAGR) of 12.9 percent from 2023 through 2028, according to BCC Research.
AI is being used for various processes and operations, including exploration and production, reservoir management, safety and environmental monitoring, and predictive maintenance.
“When it comes to AI solutions for the oil and gas industry, North America continues to lead because of its enormous reserves and technological expertise, closely followed by the Middle East, Asia Pacific, and Europe,” BCC Research said.
However, companies need to overcome some challenges to see the full benefits of AI. These obstacles include data quality, cybersecurity concerns, and interoperability challenges, wrote Sandeep Singh Negi, a Senior Executive in Marketing Operations at BCC Research.
But AI deployment isn’t all without risks, says Havtil, the Norwegian Ocean Industry Authority.
For example, weak data quality in training machine learning (ML) models could result in wrong outcomes and put users on the wrong track, says Linn Iren Vestly Bergh, a senior adviser at Havtil.
As AI is being increasingly adopted in operations with safety significance, securing acceptable data quality and management, maintenance, meaningful human control, openness, and transparency will become ever more important, according to Havtil. That applies particularly to sectors like petroleum which involve major accident risk.
“The question in the future will be less about whether we’re going to adopt AI and more about how we do this in a prudent way,” Bergh concludes.
“It’s important for this work that employers, employees and government collaborate, engage with it, and contribute experience and expertise.”
Increased digitalisation comes with increased cybersecurity threats.
A GlobalData analysis of the Q1 2024 company filings and earnings calls transcripts showed that the global oil and gas industry saw an 87-percent jump in company filings mentions of cybersecurity in Q1 2024 compared with the previous quarter.
Cybersecurity was one of the most frequently referenced themes in the first quarter of 2024, ranking highest in terms of mentions, ahead of individualism and expression and quantum computing, according to GlobalData’s Company Filings Analytics.
The top companies with sentences related to cybersecurity in the industry were EQT, Baker Hughes, ConocoPhillips, HF Sinclair, and Shell.
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Ex inspections ensure the integrity of electrical equipment in explosive atmospheres, crucial for safety in oil and gas facilities, chemical plants, and grain silos. As these industries evolve, so must their inspection tools and methods.
Arnlea, a software company based in the heart of Aberdeen, Scotland, are dedicated to increasing the safety and efficiency of inspections by devoting their efforts towards developing innovative solutions specifically for Ex inspectors.
Inspectors often face significant hurdles when using outdated methods like spreadsheets or pen and paper for recording maintenance, repairs, and equipment replacements. These traditional approaches are not only time-consuming but also prone to human error. This inefficiency in tracking and data compilation makes it difficult to assess equipment status accurately and prioritise high-risk items. The repercussions can be severe, leading to potential equipment failures, extended downtime, lost productivity, higher maintenance costs, non-compliance risks and diminished safety.
To address these challenges and enhance risk management, embracing advanced technology is essential. Modern cloudbased field inspection software offers a comprehensive solution to streamline inspection processes, improve data accuracy and enhance overall efficiency.
Arnlea has developed a solution called Nexar, a cloud-based field inspection software specifically designed for Ex inspections. A key feature of Nexar is its configurable inspection analytics dashboard that enables inspectors to make fast, informed decisions both on-site and off-site. This technology enhances safety, compliance, productivity and sustainability by allowing inspectors to track specific data sets, create comprehensive reports and generate easy-to-understand visuals.
• Enhanced Safety: Nexar enables quick identification of potential hazards, reducing risk of accidents. Real-time data and reporting ensure proactive measures.
Improved Compliance: Detailed reports meet regulatory standards, reducing noncompliance risks.
• Increased Productivity: Streamlined processes minimise downtime and boost efficiency, allowing more inspections.
• Sustainable Operations: Optimised equipment performance reduces waste and supports sustainability goals.
• Comprehensive Multi-Asset Overviews: A holistic view of operations ensures the overall health of all equipment.
• Identification of Problem Areas: Targeted maintenance improves reliability and budgeting.
• Seamless Integration: Nexar integrates with external systems like Power BI, consolidating data for a unified view.
The practical applications of advanced inspection software like Nexar are vast, particularly in industries where equipment operates in hazardous conditions. Ensuring the reliability and safety of machinery in these environments is paramount. Advanced inspection tools allow inspectors to track
the performance of critical equipment in real-time, identify potential issues before they cause significant downtime and ensure compliance with stringent safety regulations.
Data collected through advanced inspection software can be used to predict future maintenance needs. This predictive maintenance approach not only saves money but also extends the lifespan of equipment, contributing to overall sustainability. By planning and budgeting more effectively, companies can reduce unplanned downtime and maintenance costs.
Modernising Ex inspections through advanced technology is not just an upgrade but a necessity for effective risk management in hazardous environments. Enhanced safety, improved compliance, increased productivity, and sustainable operations are just a few of the benefits realised by embracing these modern tools. By transitioning from traditional methods to cloud-based, data-driven solutions like Nexar, companies can ensure a safer, more efficient, and sustainable future in their inspection processes.
Embracing advanced technology in Ex inspections represents a forward-thinking approach that addresses the inefficiencies of traditional methods while significantly enhancing risk management and operational efficiency.
In the landscape of drilling operations, finding innovative ways to enhance performance and increase cost estimation accuracy is paramount.
Fortunately, the emergence of artificial intelligence (AI) has opened the doors to groundbreaking advancements in these areas. Combining lessons learned in drilling with AI can synergise in the design of wells and the estimation of future drilling costs.
One of the most valuable assets in the energy industry is the acquired knowledge from previous projects, commonly known as lessons learned. Combining lessons learned with AI-driven analytics can produce powerful insights that drive efficiencies in well design and drilling cost estimation.
By intelligently incorporating past drilling experiences, companies can identify trends, patterns, and best practices that have proven successful. This holistic approach minimises the risk of repeating errors, enhances decision-making, streamlines operations, and optimises cost efficiencies.
AI has the potential to transform the well design process significantly. By leveraging historical lessons learned, and complex operational algorithms, AI systems can identify optimal drilling parameters, trajectories, and casing designs. AI algorithms can learn from patterns in geology, wellbore stability, and reservoir behaviour, enabling engineers to create highly efficient well designs.
risks. By leveraging the collective knowledge acquired from past projects, companies can significantly reduce costly downtime, operational failures, and HSE incidents.
Human judgment is crucial in evaluating the applicability of past experiences to new situations. Project managers and drilling teams can use their judgment to decide which lessons are most relevant and how to apply them effectively. While AI can provide recommendations based on data, it might lack the nuanced decision-making abilities of experienced professionals. Human judgment is vital in making decisions that consider the broader project context.
Through continuous learning and adaptation of lessons learned, AI-based well design systems can refine their recommendations, helping to minimise drilling risks, increase production rates, and reduce overall project costs.
Drilling cost estimation plays a crucial role in well planning, drilling budgeting, and drill-ordrop decision-making. Traditionally, cost estimation relied on past experiences and expert judgment, which often led to discrepancies and inaccuracies. By leveraging AI techniques to factors such as well depth, mud type, and even weather conditions, and applying statistical simulation methodology in cost estimation model, energy companies can analyse vast amounts of historical project data. As a result, they generate more accurate cost estimates. This ensures better financial planning and drilling project profitability.
The integration of AI and lessons learned helps mitigate potential risks associated with well design and drilling operations. AI algorithms can analyse data to identify patterns and potential risks, but they may not fully grasp the context or foresee unique challenges. Lessons learned provide a qualitative layer to risk assessment. This proactive approach allows operators to implement necessary precautions, evaluate alternative strategies, and effectively manage
The iterative nature of projects allows for continuous learning and improvement. Teams can actively adapt past experiences, fostering a culture of continuous improvement. AI systems require continuous updates and improvements based on evolving data. However, they may not inherently understand the need for cultural or procedural changes without human input.
The combination of AI and lessons learned represents a powerful synergy that can transform the oil and gas industry’s approach to well design and drilling cost estimation. By harnessing the capabilities of AI algorithms and integrating valuable knowledge from previous projects, companies can drive efficiency, optimise well designs, and accurately estimate drilling costs. This dynamic duo not only improves project planning and decision-making but also mitigates risks and enhances overall operational performance. Embracing AI and leveraging lessons learned, the industry can achieve cost-effective drilling operations while paving the way for a more sustainable and efficient future.
The AGR iQx™ drilling engineering software provides a dedicated feature for capturing lessons learned called “Experiences.” This functionality streamlines the collection, storage, and analysis of past experiences and lessons learned, allowing for easy output based on criteria such as rig, location, casing type, or similar events, etc.
With oil and gas operations taking place hundreds of kilometres offshore and in increasingly deeper waters, oil and gas operators typically rely on umbilical cables to deliver both hydraulic and electrical power supply and controls to their subsea applications.
However, aging assets in the North Sea are more susceptible to low insulation resistance (IR) within these umbilical cables. IR is defined as the ability of the insulation material to prevent leakage currents flowing between live conductors, or from the conductors to ground.
There are a number of factors which influence IR, including the stress of handling and installation, and environmental factors of being on the seabed such as debris and geophysical shifts. Repairing IR issues is often costly and time intensive, with many operators opting to shut in assets rather than risk further insulation damage to the cable.
In a recent project for an oil and gas operator offshore Canada, Verlume, J+S Subsea and Viper Innovations worked collaboratively to provide an electrical solution to low IR problems. Using battery-powered technology, the project aimed to quickly implement a solution before the asset had to be shut in with production and cost implications.
Here, the operator’s Floating Production, Storage & Offloading (FPSO) vessel was scheduled to be disconnected for routine maintenance. This disconnect would jeopardise the IR of the existing umbilicals, which were being maintained by Viper Innovations’ cutting-edge V-LIFE technology.
With risk of further degradation to the umbilicals potentially contributing to decreased operability of the field and multibillion-dollar costs, a quick remediation was required. The proposed solution needed to be a short-term, reliable means of power delivery to ensure the continued running of IR maintenance infrastructure and therefore the operator’s production, whilst remaining costeffective with easy installation into existing infrastructure.
J+S Subsea devised three subsea batterypowered control systems to maintain integrity of the subsea electrical cables when topside electrical power was unavailable.
This included integrating Viper Innovations’ IR maintenance technology with Verlume’s Charge, rechargeable battery pack. Taking a collaborative approach, the three North EastScotland based subsea specialists used their combined knowledge to swiftly provide a solution to the client’s need.
The J+S Subsea systems can be recharged on the deck of a Construction Support Vessel (CSV) or onshore, via the supplied charger, and redeployed for a further 90 days. Each system consists of a Verlume-supplied subsea battery and separate J+S Subsea control unit housing Viper’s V-SLIM (Subsea Line Integrity Monitor), with mating Electrical Flying Leads
(EFL), housed in a steel frame constructed in accordance with DNV regulations.
As a fundamental indicator of the health of a system, Viper's V-SLIM (Subsea Line Integrity Monitor) measures total system IR, enabling the existing V-LIFE infrastructure to recover low insulation faults through a patented electrical passivation signal.
Within the frame, V-SLIM is encased in a compact cannister next to Charge. Being paired with J+S Subsea’s control unit, Viper’s V-SLIM technology will work to provide a maintain IR whilst the client’s FPSO is offlocation.
Powering Viper Innovations’ technology is Verlume's Charge battery system, which offers high density energy subsea storage for maximum bottom time deployment. Three 55kWh Charge systems were supplied as part of this project, providing 90 days of continuous power delivery. Two were simultaneously deployed at project commencement and the third will be deployed later to allow for system rotation and recharging.
Integral to the quick delivery of this project was the ability to capitalise on the availability of components in J+S Subsea’s Legacy Locker, an open industry portal for the re-use, refurbishment, repurposing, and recycling of subsea equipment.
Following the success of this collaborative project, the three companies are exploring future applications of these innovative systems across the offshore environment in further global deployments in the challenging deepwater environments of offshore oil and gas operations.
The oil and gas industry is fraught with potential hazards and managing these risks is paramount to ensuring the safety of workers and the environment. Flare, a leading provider in this sector, offers a suite of solutions through its Hazardous Environment Services (HES) division.
We sat down with Flare’s Harry Smith to find out more.
Flare's HES division keeps workers safe in some of the world's most hazardous environments, including oil and gas production. Can you tell us about what initially drew Flare into this highly specialised field?
Safety has always been at the forefront of Flare's mission. We have always recognised the unique challenges faced by personnel working in the oil and gas industry. Explosive atmospheres, exposure to toxic chemicals, and extreme working conditions are common in our industry. Flare's HES division was born out of a commitment to develop solutions that specifically address these risks and ensure the well-being of workers on the coal face.
One of Flare's standout products is the Atex Zone 1 Low Pressure Breathing Air Compressor. It sounds like a gamechanger in terms of worker safety. Can you walk us through the thinking behind this innovation? What specific risks was this compressor designed to address?
The Zone 1 Compressor arose from a necessity to support workers operating in dangerous environments, particularly where space is limited, and concurrent activities are happening in the vicinity. It is built with robust safety features like the air inlet plenum with gas detection. If it detects harmful
gases, the entire system automatically shuts down while simultaneously activating a failsafe emergency air reserve and localised evacuation alarm. It's a multi-layered approach that prioritises worker safety.
That fail-safe feature is impressive. But safety goes beyond having the correct equipment, right? The quality and source of the breathing air seems equally important.
Absolutely. In the past, it was not uncommon to use filtered plant air, which brings with it its own concerns. One of the key features of the Zone 1 Compressor is its multi-stage filtration system It surpasses the stringent requirements of BS: EN12021:2014, ensuring the air workers breathe is clean and free of contaminants. Furthermore, our system is independent, ensuring that operations, often safety-critical, can continue with limited influence from external factors. This is especially crucial in situations with a heightened risk of hazardous substances.
We touched on confined spaces earlier. Can you elaborate on how the Zone 1 Compressor benefits workers in these particularly dangerous situations?
Confined spaces are often the subject of complacency, but they remain a significant hazard causing fatalities in the industry. Toxic substances are not always the culprit as oxygen-deficient atmospheres are equally lethal. The Zone 1 Compressor ensures a consistent supply of clean, breathable air, allowing workers to perform their tasks safely and efficiently. It's a literal lifeline in these high-risk environments.
Beyond confined spaces, what other applications is the Zone 1 Compressor suited for?
The compressor's versatility makes it valuable across a wide range of operations. Well interventions, workovers, waste transfer, and even sour service support can benefit from its capabilities. In these scenarios, the risk of encountering hazardous gases is significant, and the Zone 1 Compressor's advanced filtration and detection systems become a critical control measure.
The Zone 1 Compressor can also support multiple workers simultaneously. Can you tell us more about this feature?
The ability to provide clean breathing air for up to four workers concurrently allows teams to operate safely and efficiently without compromising on individual respiratory protection. This focus on multiworker support reflects Flare's dedication to creating solutions that enhance overall safety standards in the industry.
Looking ahead, how do you see HES solutions evolving to meet the future challenges of the oil and gas industry?
The industry is constantly innovating, and so must HES solutions. We see a growing emphasis on integrating new technologies and capabilities into compressors allowing for even better monitoring of air quality and potential hazards while supporting larger teams.
It's clear that Flare is a leader in keeping workers safe in some of the world's most hazardous environments. Where can people find out more?
We remain dedicated to developing cuttingedge HES solutions that prioritise worker safety and well-being, ensuring everyone returns home safe after each shift. You can follow us on Facebook or LinkedIn, or visit our website at www.flarefse.com
Viewpoint from an early career professional
I am thrilled to join Intervention Rentals as a Commercial and Digital Specialist, stepping into a role that bridges the gap between traditional and renewable energy solutions.
My focus is on ensuring our branding materials reflect our unwavering commitment to sustainability and innovation.
Intervention Rentals, a well-known independent supplier of North Sea rentals, has been at the forefront of the oil industry since its inception in 2006. Our expertise spans the rental, repair, inspection, and certification of essential equipment for well services, integrity, drilling, completions, flow back, and testing, along with pipeline process and commissioning services. Our comprehensive service portfolio supports both traditional and renewable energy sectors, illustrating our adaptability to the evolving energy landscape
In my role, I have the privilege of contributing to the expansion and development of our
Sustainable Solutions division. This division is dedicated to incorporating renewable energy options into our offerings, underscoring our commitment to a greener future. A couple of the key projects we are working on are thermal harvesting – an energy model, developed in collaboration with Robert Gordon University, which showcases how waste heat can be converted into renewable energy & Energy reclamation in which energy rich waste materials and clean water from distilleries and food processing is repurposed into the circular economy.
My responsibilities extend to solidifying Intervention Rentals' branding identity, ensuring it resonates with both current and prospective clients. This entails a comprehensive overhaul of our branding
materials to reflect our core values of innovation and sustainability. By crafting cohesive marketing strategies, creating visually compelling content , and aligning our digital presence with our mission, I aim to reinforce our position as a leader in both traditional and renewable energy sectors.
In addition to marketing and branding, I am also receiving training in commercial management. This training includes learning to use the new CRM system we designed with IPGN Solutions, as well as gaining insights into overseas expansion and sales management. Through this comprehensive training, my understanding of business operations and how to shape them for the future is continually growing.
Being a part of Intervention Rentals has been a rewarding experience, and I am excited to continue contributing to our sustainable future. Together, we can build a more resilient and eco-friendly energy sector.
• Turnover for FY23 – 24 up 74% from previous year
• New Sales Director and Head of Finance appointed
• Largest ever service contract secured with British Antarctic Survey (BAS)
• Headcount increased by 30%
North-east Scotland based engineering specialists, Brimmond have announced a 74% increase in turnover for the year 2023 - 24, reaching £11.4m, far exceeding their forecast of £10m.
Acontributedto this exceptional financial position:
• A 5-year service contract with British Antarctic Survey (BAS) for crane servicing and engineering support on the Royal Research Ship (RRS), Sir David Attenborough. The company’s largest service contract to date will see Brimmond become the main hydraulic contractor for refit periods, working across the ship’s Rosyth and Harwich bases.
• A significant six-figure project for an offshore renewables project to design and manufacture a 1800kW Seawater Jetting Spread package.
• The design and manufacture of an IWOCS (intervention workover control system) Umbilical Reeler for Rosebank oil and gas field.
• A long-term six-figure rental of the company’s largest marine crane to assist with the P&A decommissioning campaign of the Thistle Alpha.
• Brimmond’s marine crane division, headed up by Paul Dingwall, has generated over £2million since April this year alone.
Situated in Kintore, Aberdeenshire, Brimmond specialises in the design, manufacture, rental and repair of lifting, mechanical and hydraulic equipment for industry.
With customer demand accelerating business growth, Brimmond embarked on an extensive recruitment campaign, increasing the firm’s headcount from 40 to 52 in the space of a year. A re-structuring of the senior leadership team to align with the growth strategy has also seen the recent appointments of Matt Nicoll as Sales Director, and Craig Yeoman as Head of Finance.
Jamie Dunne is a senior associate at Brodies LLP, specialising in competition law.
BThe Digital Markets, Competition and Consumers Act 2024 (DMCC Act) received Royal Assent shortly before Parliament was dissolved for the 2024 General Election.
arring any surprises, it is expected to come into force this autumn. Among changes to UK competition and consumer law and the regulation of big tech, the DMCC Act will also change which mergers fall under the jurisdiction of the UK's Competition and Markets Authority (CMA) – a development that is likely to be of interest to the oil and gas industry.
Under the Enterprise Act 2002, mergers can be examined by the CMA (and therefore potentially blocked or made subject to conditions, such as divestment of some activities, or conduct rules) if they either (1) involve a target with a UK turnover of £70m or more, or (2) result in the combined business gaining (or increasing) a market share of 25% or more in any market.
Because the CMA has a lot of discretion to decide what constitutes a market, this "market share" test has sometimes been criticised for allowing it to call-in any merger where the
merging parties have overlapping activities, even where the target's activities are very narrow or its UK turnover is negligible. This can be a particular issue in niche markets, for example specialist goods and services supplied to the oil industry, which may only have a very small number of players to begin with.
The DMCC Act increases the "UK turnover" jurisdiction test from £70m to £100m, and amends the "market share" test to add a £10m "de minimis" threshold, so a merger where neither of the parties has a UK turnover of more than £10m will no longer be caught by the CMA's jurisdiction. This will provide more certainty to international mergers with a limited UK dimension.
However, what the DMCC Act gives with one hand it takes away with the other. It will add a third way in which the CMA can assert jurisdiction over a merger:
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• where one of the parties has a UK turnover of £350m or more and a market share (in any market) of 33% or more, and the other party is registered in the UK, carries on activities in the UK, or supplies to customers in the UK (which need not be in the same market in which the first party has its 33%+ market share).
The idea of this third test is to capture mergers that are caught by neither of the existing thresholds: i.e. those where the target has a UK turnover of below £100m (or even no UK turnover at all) and the buyer is a big player in its own market but has no overlapping activities with the target. This "gap" was identified in the context of big tech players buying startups (with niche or unique services and negligible turnovers) in order to incorporate their IP and prevent them growing into competitors. However it may just as easily apply to acquisitions by major oil and gas services companies, where they buy small, niche service providers in order to add to the services they can provide.
The CMA has taken an increasingly aggressive approach to mergers in the years since the UK left the EU, and has expressed particular concerns about concentration in the oil and gas sector. By adding to the CMA's options for intervening in mergers, particularly those involving niche goods and services, the DMCC Act may also add to the toolkit available to the CMA to regulate competition in the oil and gas sector.
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The rapid pace of technological innovation has transformed the energy industry, offering tremendous potential for growth, sustainability, and improved efficiency.
These innovations include the widespread adoption of renewable energy sources like solar, wind, hydro, and geothermal power, the integration of smart grid technology, advanced batteries, and advanced data analytics to provide valuable insights into energy production and maintenance. These are just examples of a wide range of novel solutions which can revolutionise the industry. However, it is crucial to effectively manage the associated technological risks, such as ensuring cybersecurity, protecting critical infrastructure, and addressing potential challenges related to the integration of these innovative technologies. These steps are essential for a smooth transition and successful integration of these advancements into the energy landscape.
Integrating new technologies, such as renewable energy solutions and smart grids, into existing energy infrastructure poses significant challenges. Issues of compatibility, operational disruptions, and unforeseen complications often arise during the implementation phase. However, since the energy industry relies heavily on complex, interconnected systems that encompass a variety of technologies, equipment, and software applications this task is far from being straightforward. A failure or malfunction in one part of the system can have cascading effects, leading to operational disruptions, or even safety incidents. To mitigate these risks, energy companies must proactively identify and manage their technological dependencies by implementing backup systems, redundancies, and robust maintenance and monitoring procedures. As such, effective risk management requires thorough planning, pilot projects, and close
collaboration with technology providers to ensure smooth integration and minimize potential disruptions. Nevertheless, the fast pace of technological advancements adds to these challenges, making it difficult for companies to stay ahead. Investing in cutting-edge technologies can be risky, as there is always the possibility that a chosen solution may quickly become obsolete. To navigate this uncertainty, energy companies need to carefully evaluate emerging technologies, conduct comprehensive costbenefit analyses, continuously monitor industry trends, and collaborate with research institutions and technology providers to remain at the forefront of innovation.
Additionally, with the increasing reliance on digital systems, the energy industry is more exposed to cyber threats. Hackers and cybercriminals pose a significant risk to the industry’s critical infrastructure, including power grids, control systems, and data networks. Combined with the increase in the amounts of data the energy industry generates, through the use of novel sensor data, customer information, and operational records, this represents a complex task. All stakeholders in the energy sector must invest in robust cybersecurity measures to protect against cyber-attacks and potential cyber threats. Regular audits, employee training, network monitoring, and incident response plans are essential to safeguard critical infrastructure. Additionally, effectively managing the data generated by the industry presents its own set of risks. Ensuring data security, privacy compliance, and maintaining data quality are important aspects within the technological risk landscape. Robust data governance frameworks, data protection
measures, and data analytics capabilities are necessary to minimize data-related risks and optimize the value derived from data assets.
Ensuring effective management of technological risks is crucial for the energy industry to take advantage of the benefits offered by technological advancements. This often requires extensive research and development efforts. This includes evaluating emerging technologies, assessing their feasibility and performance, and addressing integration challenges and compatibility issues. R&D efforts might also focus on developing robust cybersecurity measures, predictive maintenance technologies, and advanced energy storage solutions. By investing in R&D, the energy industry can effectively manage and mitigate technological risks while driving innovation and ensuring a reliable and resilient energy supply.
The United Kingdom is at the forefront of advancements in the energy industry, particularly when it comes to mitigating technological risks. The country has made significant investments in research and development, establishing itself as a hub for innovation in renewable energy, smart grids, and energy storage. These investments have not only brought economic benefits but have also contributed to reducing carbon emissions and promoting sustainable development. The UK government has implemented various initiatives to support these advancements, including funding programs, grants, and collaborations with industry and academic organisations. These initiatives aim to encourage the adoption of emerging technologies and promote cybersecurity measures.
To support these efforts, companies engaged in pioneering projects can explore the potential benefits of funding schemes such as HMRC’s R&D Tax Relief Scheme. This scheme provides financial incentives for companies investing in research and development activities. Leyton, a renowned innovation funding leader, offers expert guidance and support to help firms secure financial backing for their research and development initiatives. Leveraging Leyton’s extensive experience ensures that companies can confidently apply for R&D funding, maximising the rewards for their innovative endeavours.
Optimizing the performance of your offshore wind assets to generate and transmit clean power efficiently and sustainably.
Wood, a global leader in consulting and engineering, has played a key role in securing more than €1 billion of funding for its clients in Europe, enabling three major clean energy projects to reach final investment decisions (FID).
In Lithuania, Wood’s team of technical consultants served as Lenders’ Technical Advisors, helping to advance the nation’s largest onshore wind farm. Wood’s consultants guided the developer Nord/LB, alongside its banking partners KfW IPEX-Bank and the Nordic Investment Bank (NIB), throughout the pre-finance period.
Set for completion in 2026, this 821-megawatt (MW) plant will power over 270,000 households, slashing carbon emissions by more than 200,000 tonnes per year. Wood continues to lead on project management for the wind farm as construction begins.
Wood’s expertise was also key in supporting European renewables developer, Renewable Power Capital (RPC) to finalise financing for its 553 MW onshore wind portfolio in Sweden. Made up of four wind farms, the project is set to significantly reduce emissions produced by the country's industrial sector. Wood acted as technical advisor for the initial investment followed by further due diligence to enable full project financing. Wood will continue to support the project, providing expert guidance and supervision throughout the construction phase.
Beyond this, Wood is also acting as owner's engineer for the Catalina green hydrogen project, a first-of-its-kind project in Spain. The project was recently announced as a recipient of the European Hydrogen Bank’s first auction, receiving €230 million in funding. Catalina will combine 1.5 gigawatts (GW) of wind and solar energy to power a 500-MW electrolyser producing green hydrogen.
Azad Hessamodini, Executive President for Consulting at Wood said, “To profoundly transform and accelerate the diversification of the world’s energy mix, significant capital investment is required. Our consultants and technical advisors are skilled at supporting our clients in assessing the critical factors, such as technical and commercial feasibility including market returns, that enable final investment decisions, and I’m proud of the impact we’re making.”
Europe is paving the way for the advancement of renewable energy projects with a total offshore wind capacity of 25 GW across the EU. Having worked on over 70% of these projects, Wood is sitting at the forefront of advancing the region’s clean energy agenda.
The UK Government have announced the formation of an Onshore Wind Industry Taskforce.
The main aim of the taskforce will be to bring together key players from government, industry, regulatory bodies, the financial sector and other relevant organisations to drive forward the increases in onshore wind deployment needed to meet the UK’s 2030 targets.
The taskforce will be chaired jointly by the UK Government’s Secretary of State for Energy Security and Net Zero, Rt Hon Ed Miliband MP and Matthieu Hue, the CEO of EDF Renewables.Commenting on the announcement Claire Mack, Chief Executive of Scottish Renewables, who has been invited to join the taskforce, said:
“Scottish Renewables warmly welcomes this collaborative effort between our industry and the UK Government to shape the future of onshore wind and support its commitment to doubling onshore wind capacity by 2030.
“In Scotland, the Onshore Wind Sector Deal has been a game changer for the industry in Scotland setting out a series of key measures
to support the Scottish Government in reaching its net-zero targets by delivering onshore wind farms quickly, sustainably and to the benefit of local communities.
“What we have learned from delivering the sector deal can play a crucial role for the Taskforce by helping to identify current barriers to deployment across the UK and offering solutions on how to improve the planning system and develop opportunities for the supply chain.
“Strong collaboration between our industry and government is vital if we are to deliver on our clean energy ambitions and through the sector deal in Scotland we are already feeling the benefits of this.
“We will work closely with all stakeholders to ensure the Taskforce is effectively implemented and we look forward to a new era of the UK and Scottish governments working together to deliver our shared onshore wind ambitions.”
Macquarie Asset Management plans to acquire full ownership of two UK southern North Sea wind farms using funds managed by BlackRock.
Macquarie Asset Management plans to acquire full ownership of two UK southern North Sea wind farms using funds managed by BlackRock.
Lynn and Inner Dowsing, off the coast of Lincolnshire, have been in service since 2009, with a total installed capacity of around 194 MW.
Macquarie GIG Renewable Energy Fund 1 acquired a 60.75% stake in both developments in 2016. Under the new planned transaction, via Macquarie GIG Renewable Energy Fund 2 and a Macquarie Asset Management Private Wealth Fund, the shareholding would rise to 100%.
Elsewhere in the UK, funds controlled by Macquarie Asset Management manage stakes in the Gwynt y Môr, Sheringham Shoal, Rhyl Flats and East Anglia One offshore wind farms.
In addition, Macquarie Group and its partners are supporting the current 2-GW West of Orkney, 1.5-GW Outer Dowsing, 1.2-GW Rampion 2, and 353-MW Five Estuaries offshore wind developments..
Infinity Partnership is an award-winning, multi-disciplinary accountancy and business advisory practice, with a proactive approach to customer service.
Infinity has been a five-time winner at the British Accountancy Awards and has been a three-time finalist at the Scottish Accountancy Awards in recent times.
Saipem has secured a contract for the supervision and the subsea intervention services of the GreenStream pipeline, throughout the offshore and onshore sections at Libya and Italy terminals.
The new contract, awarded by GreenStream, one of the leading midstream players in the Mediterranean Sea, merges the activities that Saipem has been undertaking for GreenStream since 2008 as to asset integrity, inspection, maintenance and emergency pipeline services, and expands them to cover a wider range of scenarios and customer’s needs.
The activities will be managed by Sonsub, Saipem’s center of excellence for robotics, underwater technologies and services, and executed in coordination with the Saipem Engineering Hub.
The scope of work streamlines the integrated management of survey data and critical spares, the provision of specialized engineering services related to asset integrity and readiness services for repair interventions in case of a wide range of damage scenarios. Specifically, repair interventions in case of damage will be performed via the SiRCoS technology, a remotely operated repair system industrialized by Sonsub and qualified to operate in water depths of up to 2,200 meters.
remedial
The Netherlands-based company will provide their specialist subsea and topside services, leveraging their experience and capabilities in operating with divers and rope access specialists on offshore energy infrastructure.
With this award Saipem will contribute to managing the integrity of a fundamental underwater infrastructure for the Italian energy supply with an integrated approach. It also consolidates the long-term cooperation between Saipem and GreenStream, which in 2002 awarded the company a contract for the pipelaying of said pipeline, a project thanks to which Saipem achieved the record for the deepest pipelaying with anchors.
The remedial campaign which will run for around 35 days includes the replacement of Impressed Current Cathodic Protection (ICCP) systems that prevent corrosion in the metal structure of the turbine foundation and tower, replacement of various reference cells, debris removal and sonar transponder exchanges.
Bluestream will charter the Go Electra multi-purpose service vessel with air dive spread and a Seaeye Tiger observation class ROV to deliver the scope with a focus on safety and quality a core priority.
The DanTysk and Sandbank wind farms, completed in 2014 and 2017 respectively, have a combined capacity of 576 MW and cover an area of 150 square km with 152 turbines.
The remedial works by Bluestream are expected to ensure the continued integrity and operational performance of these offshore wind assets, which are critical to supporting Germany’s and the EU’s energy transition ambitions.
“We are delighted to be working with Vattenfall on this important remedial campaign delivering our specialist subsea and topside services, leveraging our significant experience managing inspection and maintenance campaigns in these types of shallow water offshore environments.
“OEG Renewables and Bluestream have positioned themselves as valued partners in the supply chain for offshore wind, delivering integrated solutions to offshore wind farm operators and OEMs in Europe and beyond, and supporting the global energy transition,” said Rutger Lieverse, Commercial Manager of Bluestream.
CHC Helicopter, the global helicopter services company specializing in offshore transportation, announced it has agreed a new contract with Petrogas to support the Baker and Abbey wells on the UK Continental Shelf.
The contract covers crew change and transportation services from CHC’s base in Norwich; with the operator also providing support services including passenger logistics and freight handling.
CHC will dedicate a Leonardo AW139 to support the contract, which commences on Aug. 1, 2024.
For over 35 years, CHC has supported Petrogas’ operations in the Dutch Continental Shelf area of the North Sea. This latest contract marks an expansion of their existing relationship.
Dave Grant, EMEA west commercial director at CHC, said: “Petrogas have placed their trust in us to not only deliver safe and reliable missions, but to lend our operational expertise and guidance on support services. It’s a real testament to the reputation of our team in the market.
“Strategic relationships with established customers, like Petrogas, continue to produce strong demand for our services. We focus on optimizing the use of our fleet to maximize its availability and meet the growing number of opportunities for us in the market.”
CHC is a trusted partner to the offshore energy market around the globe. In the North Sea, it continues to build long-standing strategic alliances with its customers.
Grant added: “The opportunities for growth in the North Sea are clear. We’re working closely with our customers to support their future success, and the energy industry as a whole. The future looks bright for us both.”
CHC is committed to supporting the future of the North Sea energy market.
Spain’s Dragados Offshore in consortium with Germany’s Siemens Energy has won a deal to construct a new converter system for the LanWin3 offshore grid connection project in the German North Sea.
It was awarded by transmission system operator 50Hertz and the EPCI contract includes all engineering services, the procurement of the necessary components as well as the construction, transportation, and installation of the systems at sea and on land. The deal is worth around €2.9bn ($3.17bn).
The offshore platform will be built at Dragados Offshore yard in Cádiz, Spain, while the HVDC components for the converter will be manufactured at European production sites by Siemens Energy.
The LanWin3 offshore grid connection will connect a 2GW offshore wind farm in the North Sea to the mainland. It is located around 120 km northwest of Helgoland within the German EEZ. From there, a sea and land cable will run over 200 km to the grid connection point in the Heide area in North Friesland.
On the land side, the offshore grid connection systems LanWin3, operated by 50Hertz, and LanWin2, operated by TenneT, will be connected to the NordOstLink, a high-performance HVDC transmission line to be built from Mecklenburg to Western Pomerania.
The onshore counterpart to the offshore converter will be built near Schwerin to convert the direct current into alternating current. Both the offshore grid connections and the HVDC will have a voltage level of 525 kV to be able to transport large amounts of electricity with low losses.
Perth, Australia – 09 July 2024 –Wood, a global leader in consulting and engineering, has secured a sixyear contract to provide brownfield engineering, procurement, and construction management (EPCm) solutions for Shell’s Prelude Floating Liquified Natural Gas (FLNG) facility in Western Australia.
Ken Gilmartin, CEO at Wood said “LNG is a key transition fuel as industry balances the need for global energy security with the importance of urgent reduction in carbon emissions. We are delighted to build on our 70-year global relationship with Shell to deliver integrated brownfield engineering solutions for Prelude, the world’s largest floating offshore gas facility.
“The contract will draw on our global LNG expertise and underlines our position as a market leader for brownfield engineering across Australia.”
Prosafe has secured a Letter of Intent from Ithaca Energy for the charter of Safe Caledonia to provide accommodation support in the North Sea, with a contract value between USD 26 million to USD 37 million, set to commence in June 2025 for six months plus options.
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Well-Safe Solutions provides a ground-breaking approach to the safe and cost-efficient decommissioning of on and offshore wells. We offer a specialist well abandonment service that allows operators to meet the challenges and regulatory imperatives around decommissioning, while significantly reducing costs.
The North Sea Transition Authority (NSTA) announced in a statement posted on its website that it has opened investigations into missed deadlines for well decommissioning.
“Members of the NSTA’s Directorate of Regulation have now commenced investigations relating to alleged failures to complete timely plugging and abandonment in line with approved plans,” the NSTA said in the statement.
“Operators must leave the marine environment clean and safe once they stop producing, and are legally required to decommission their platforms, pipelines and wells, a complex and expensive process which requires thorough preparation and planning,” it added.
“Taking too long, or deferring work, adds to the cost and can mean that platforms continue to use power and release emissions even though they are no longer producing oil and gas,” it continued.
North Sea operators must take action on well decommissioning to support the UK’s supply chain, clean up their oil and gas legacy, and stop costs spiraling, the NSTA said in the statement, which highlighted the release of the NSTA’s latest decommissioning cost and performance update.
The NSTA outlined in the statement that it is “getting tough on operators who do not meet their regulatory obligations on well decommissioning”.
Repeated delays to well plugging and abandonment (P&A) work, competition for rigs from overseas, and cost pressures are pushing up the estimated bill for decommissioning on the UK Continental Shelf, the NSTA warned in the statement.
In a statement posted on its site on November 6, 2023, the NSTA revealed that, on November 1, 2023, Pauline Innes, the NSTA’s Director of Supply Chain and Decommissioning, wrote to licensees “reminding them of their obligation to decommission wells in a timely manner”
“Currently compliance with guidance is patchy and the NSTA is concerned at the number of deferrals for well decommissioning activities that are being sought,” the NSTA warned in that statement.
“While exceptional circumstances may arise to justify a deferment application, we do not normally expect to receive such requests,” it added.
“Failure to meet a license requirement in relation to well decommissioning may result in the matter being passed to the NSTA’s Disputes and Sanctions team,” it went on to warn.
In its latest statement, the NSTA said industry’s ability to share knowledge, learn lessons and produce robust plans helped lower the decommissioning cost estimate by GBP 15 billion ($19.49 billion) between 2017 and 2022.
It added, however, that “further improvements have been difficult to achieve as much of the low-hanging fruit has been picked”.
Operators expect to spend about GBP 24 billion ($31.19 billion) on decommissioning between 2023 and 2032, the NSTA said in its statement, highlighting that this was up GBP 3 billion ($3.89 billion) on the forecast for the same period in last year’s decommissioning cost and performance report.
Off the coast of Australia are clusters of gas and oil rigs dating back to the 1960s – part of the country’s transformation into a global resources giant.
But many of these rigs are now coming to the end of their lives, prompting concerns about how to ensure they do not cause lasting damage to the environment or water quality.
The looming decommissioning of Australia’s rigs is set to cost A$45 billion (S$40 billion) by 2040 and a total of A$60 billion (S$53 billion) by 2070, according to the federal government.
This has led to debate about whether firms should remove the rigs entirely or be allowed to leave some of the underwater infrastructure in place.
The first area to be cleared of rigs is in Bass Strait, off the coast of Victoria, and it is being conducted by Esso, a subsidiary of American resources giant ExxonMobil, which plans to dismantle at least 12 platforms by 2027.
Esso has proposed removing the above-sea structure, as well as the undersea platforms to depths of 55m below the water, and then leaving the remaining structures in place.
A mammoth oil rig platform has arrived in Hartlepool for decommissioning.
The Brent Charlie topside platform has been delivered to Able Seaton Port, on Tees Road, where it will be broken down and recycled over the next 18 months safeguarding dozens of jobs.
Weighing 31,000 metric tonnes, it is the largest one of its kind to be lifted, transported and delivered to land.
The massive structure was delivered by the Allseas Pioneering Spirit off the Hartlepool coast, before being transferred onto cargo barge the Iron Lady for the final tow into Able Seaton Port on Friday.
The Brent Charlie is the fourth and final platform from the Shell Brent oil and gas field, located off the north-east coast of Scotland, to be decommissioned at Able Seaton Port.
The proposal is currently being considered by the federal government’s offshore energy regulator.
Esso told The Straits Times that its approach would minimise environmental damage because it would preserve marine ecosystems that have developed around the underwater structures.
It said it has already spent A$1 billion on decommissioning work, including plugging more than 120 wells connected to its rigs.
“If we were to completely remove the structures, we would need to undertake significant dredging of the sea floor, meaning not only removal of these ecosystems, but also significant impact on surrounding marine life,” said a spokesman for the company.
“Scientists around the world are calling for these structures to be left in place because of the significant and diverse marine ecosystems… they have built since being installed,” the spokesman said.
But Esso’s proposal has prompted criticism from some experts and environmental groups, who have said leaving decaying infrastructure in place will damage marine life and that resources firms want to avoid removing entire rigs because of the cost.
Resources firms, which are required to pay for the decommissioning, face enormous bills over the coming decades as their rigs come to an end.
Across Australia, an estimated 5.7 million tonnes of steel, concrete and other materials will need to be removed from about 60 to 100 ageing rigs, which are mainly in the Bass Strait and off the coast of Western Australia.
According to Australian law, firms should aim to remove the entire rig but can seek an exception if it leads to equal or better environmental outcomes.
An expert on offshore energy law, Professor Tina SolimanHunter from Macquarie University, told ST that Esso’s plan was “folly”. She said the firm should remove its entire rigs, except for any material which, if removed, could cause harm to marine life, such as pipelines which could release toxins. This has been the practice in countries such as Norway and Britain.
Peter Stephenson, founder and executive chairman, said: “Able are very proud to be an integral part of the Brent Field decommissioning project.
"The arrival of the Shell Charlie to Able Seaton Port is happening through a well-coordinated effort with our partners Shell and Allseas to provide this ‘engineering first’ of receiving a single piece topside of 31,000 metric tonnes.
"Able Seaton Port infrastructure has helped to make this longstanding contract a success and we look forward to providing this service on future large scale projects.”
He added: “Brent is an iconic oil and gas field and our role in its decommissioning is testament to our commitment to undertake complex and challenging operations to the highest health safety and environmental standards.”
STATS & ANALYTICS
PROVIDED BY
Offshore O&G-related engineering, procurement and construction (EPC) contract award value year-to-date is estimated at approximately US$31 billion (excluding letters of intent), of which contracting activities in the last 30 days were headlined by the announcement from OneSubsea that it had secured the subsea production system (SPS) contract for TotalEnergies' Kaminho offshore Angola. The contract's work scope involves engineering, procurement, construction, installation and commissioning (EPCIC) of 13 subsea trees. Vallourec also confirmed an award to supply of approximately 5,000 tonnes of Oil Country Tubular Goods (OCTG) and associated services for the project. Offshore Indonesia, Wison New Energies announced it officially signed the EPCIC contract for Genting Oil and Gas Limited's (GOGL) AKM floating liquefied natural gas (FLNG) unit, which will process gas from the Asap, Mera and Kido fields in Indonesia. This contract follows both parties entering into a Limited Notice to Proceed Agreement in September 2023. Wison stated that first steel of the project was cut on 7 June 2024.
Other major contract awards announced during the period under review were for Corinth Pipeworks to manufacture and supply approximately 118km of High-Frequency Welded (HFW) steel pipes for Woodside Energy's Trion development offshore Mexico. Corinth stated that the scope of supply also included the application of external coating and concrete weight coating (CWC). Offshore India, ONGC awarded Larsen & Toubro (L&T) the work scope for the second phase of its Pipeline Replacement (PRP-8) project, which is reportedly valued at approximately US$283 million. The contract involves 140km of pipelines across multiple assets offshore the west coast of India. L&T also confirmed a contract award from ONGC for the Daman Upside Development Project. The work scope includes EPCIC for four wellhead platforms (WHP), 140km of pipelines and associated topside modifications at existing wellhead platforms. Offshore Libya, Rosetti Marino announced a contract award from Mellitah Oil & Gas for the EPC work scope for the topsides of a WHP.
Looking forward, Westwood forecasts an additional US$35 billion of offshore O&G-related EPC spend for the remainder of 2024, driven by c.125 subsea tree unit awards, c.2,230km of subsea umbilicals, risers and flowlines (SURF), c.2,100km of pipelines, 75 fixed platforms and 10 floating production units, of which five will be an upgrade/redeployment of existing units.
The global committed jackup count dropped to 412 units in June. Marketed available and cold-stacked jackup counts now stand at 30 and 56 respectively, with marketed committed utilisation and total utilisation at 93% and 83%, respectively. During the month, a total of three contracts were awarded, amounting to 1,115 days (3.1 rig years) of backlog added. Shelf Drilling Tenacious will be drilling for an undisclosed client in Angola. The charter will begin in direct continuation of the current contract, keeping the rig engaged until February 2026.
The global committed semisubmersible count grew to 65, with 12 available and 12 cold-stacked rigs remaining in the fleet. During the month, marketed committed and total utilisation rose to 84% and 73%, respectively. The Transocean Spitsbergen LOI was converted into a firm contract, where the rig will be drilling for Equinor on a three-well firm plus six-well options contract offshore Norway. The campaign is expected to commence during 4Q 2025.
Finally, the global drillship count sustained at 82 units during the month, leaving seven marketed rigs available plus 14 cold-stacked units. Marketed and total committed utilisation sustained at 92% and 80%, respectively. Hess has extended the current contract for Deepwater Asgard for continued operations in the Gulf of Mexico by 365 days and is expected to commence around May 2025 in continuation of its current programme.
Since the last update, no turbine contracts were awarded, however the number of turbines expected to be awarded in 2025 has increased from 835 to 859. In terms of contracting activity outside of turbine supplies, Cadeler has been awarded a firm contract for the installation of the turbines at the 1,080MW Inch Cape wind farm. Cadeler will use one of its newbuild M-class Wind Turbine Installation Vessels (WTIVs), Wind Maker or Wind Mover, to undertake the work. The contract is scheduled to commence in 4Q 2026, and it is expected to last 249 days.
Dominating headlines was news that the lease rights for two German offshore wind sites were awarded via a dynamic bidding process. EnBW was awarded the rights to the 1GW Project Site N-12.3 with a bid price of EUR1.10 million (US$1.17 million) per MW, whilst Offshore Wind One GmbH won the rights to the 1.5GW Project Site N-11.2 at a price of EUR1.30 million (US$1.38 million) per MW.
Finally, the Dutch government announced it is planning to launch the lease tenders for the 2GW Ijmuiden Ver Gamma (V & VI) and 2GW Nederwiek Zuid 1 offshore wind sites by the end of 3Q 2025. The Netherlands Enterprise Agency (RVO) has stated that it could potentially reduce the capacity of both sites to 1GW each or offer one 2GW and one 1GW site. The two sites will be awarded based on qualitative criteria and a financial bid.
Westwood Global Energy Group
are specialist providers of detailed market intelligence for the offshore energy sector, covering; offshore rigs, production facilities, subsea equipment, subsea services, offshore marine and offshore renewables and power.
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In regions that present economic, political and cultural uncertainty, it’s critical to work with travel management companies (TMCs) to ensure safe, efficient, and compliant travel across some of the more challenging locations to do business.
With an industry as far-reaching and diverse as energy, it’s to be expected that its workforce will be required to travel to remote areas. With projects and environments stretched across a rich tapestry of cultures and settings, it’s not just the type of work that needs to be considered when approaching a job.
Although the energy sector can appeal to those looking to see the world and experience travel, varying regions often have complex histories and unique circumstances to be aware of. From historical conflicts to political uncertainty and socio-economic issues, operators and organisations must consider all potential risks when preparing personnel to travel. Prioritising the duty of care of your team is essential, safeguarding all crew's safety and comfort so they can travel with confidence and ease.
Gateway Solutions
Operators and organisations must integrate the advice and consider the solutions of expert TMCs to ensure smooth travel even within challenging regions. It’s the role of TMCs like ATPI to overcome logistical obstacles and guarantee safe passage wherever projects take you.
Travel experts are well-versed in the unique challenges of the global energy sector, meaning they are more than adept at handling potential risks and emergenciesregardless of the location or subsequent time zone. Because of the global nature of the
work, 24/7 support is a necessity to avoid any challenges that may arise at any given time, solving issues promptly and efficiently.
Crucial to seamlessly traversing complex regions such as the Middle East or Africa is risk management expertise and knowledge of the local region. It’s necessary for TMCs to have both in abundance to ensure travellers embark on every journey with confidence by meticulously coordinating and managing every aspect of a crew’s travel arrangements – all the while keeping potential risks and local developments in mind. From pre-trip assessments to real-time monitoring and assistance during the trip, there can be no room for uncertainty.
The best way to ensure that there will be no unwanted developments is for TMCs to utilise regional on-the-ground experts who can monitor potential security threats as they evolve – amending itineraries to prioritise traveller safety. This is where collaboration can transform travel.
Supporting ATPI’s commitment to providing a high-level duty of care is our collaboration with the health and security services firm International SOS (ISOS). Receiving approximately four million assistance calls globally per year, ISOS is at the top of its field with 12,000 health, security and logistics experts on standby to support in over 1,000 locations. ISOS are a crucial part of the ATPI network, combining our joint expertise to safely navigate challenging scenarios such as recent political unrest in Saudi Arabia and travelling across Asia during the height of the COVID-19 pandemic. As a result of our partnership, problematic scenarios have been dealt with safely and effectively.
