OGV Energy - Issue 43 - April 2021 - Marine & Shipping by OGV Energy

APRAUGUST 2021 - ISSUE 2020 43

UK’s No. ENERGY SECTOR

PUBLICATION

THE MARINE & SHIPPING ISSUE

GLOBAL ENERGY NEWS

UK North Sea - Europe - US Australia - Middle East

FEATURING

Seall - Stena Drilling Petrasco - Arnlea Systems Spectis Robotics

WORLD PROJECTS MAP MARINE & SHIPPING ZONE INNOVATION & TECH GREEN ENERGY CONTRACT AWARDS

OIL-PRICE P.16

Oil Prices Spike as a result of the OPEC+ decision

MARINE & SHIPPING P.20

The drive to reduce emissions from the shipping sector became stronger as the pandemic accelerated

ON THE MOVE STATS AND ANALYTICS LEGAL & FINANCE EVENTS

RENEWABLES P.28

Creating an energy transformation ecosystem

INNOVATION P.32

Ocean Infinity's Armada fleet, the world’s largest uncrewed fleet

Scan with OGV APP

Shore to ship to shore voyage planning solutions for the energy market Read on page 4

www.seallecdis.com

ARTIFICIAL INTELLIGENCE

CONTENTS

COVER FEATURE 04 Seall: Shore to ship to shore voyage planning solutions for the oil and gas market

GLOBAL ENERGY NEWS 04

9 - UK North Sea 12 - Europe 14 - US 15 - Australia 16 - Middle East

WORLD PROJECTS MAP

18 - EIC - World's latest project updates

MARINE & SHIPPING ZONE 20 - The Prospects of Marine & Shipping Industries after COVID Shock 22 - Stena Drilling: Keeping the marine crews on our moored semi-submersibles ‘Ship Shape’ 24 - Petrasco: Lockdown Logistics 26 - Arnlea: From Energy to Marine: how Arnlea’s US ambitions developed a brand-new market.

27 - Spectis Robotics: Optimising Operations with underwater ROVs

GREEN ENERGY 28 - John Butler: Creating an energy transformation ecosystem 30 - Renewable UK: Renewable energy - An unstoppable force

INNOVATION & TECH ZONE 32 - Ocean Infinity: the world’s largest uncrewed fleet

EVERY MONTH 34 - People in Energy: James Hellard, Senior Design Engineer at MAATS Tech Ltd 36 - Contract Awards 40 - On the Move 42 - Stats and Analytics 46 - Company News 48 - Legal and Finance 49 - Events 50 - Community Partner: Aberdeen FC

KENNY DOOLEY MAIN EDITOR Welcome to the April edition of OGV Energy Magazine where this month will be looking at the “Marine and Shipping” sector. Over the last few weeks we have been hearing positive news around contract wins, FID’s and the potential for face-to-face events returning, which is great to see. As we head towards shutdown and maintenance season, many of our clients are gearing up to engage in project work again and activity levels are moving in the right direction! Here at OGV Energy, we have tied up exhibition space at ADIPEC in November and will be promoting Scottish and UK companies on our stand as well as hosting a business breakfast and drinks reception for the GlobalScots network, so please drop us a note at office@ogvenergy.co.uk if you are interesting in supporting any of these events.

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We are delighted to welcome Seall ECDIS as our front cover partner and their Managing Director Barry Booth takes time out to explain the features and benefits of their voyage planning solution.

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We also have insights from Stena Drilling, Petrasco Energy Logistics, the Institute of Marine Engineering, Science and Technology, Ocean Infinity, QHSE Aberdeen and Drillmar. We are excited to announce a new partnership with Renewables UK that starts this month as we seek to increase our coverage as this area as the energy transition gathers pace and the rest of this month’s magazine features our regular reviews of the Energy sector in the North Sea, Europe, the Middle East, the US and Australasia along with industry analysis and project updates from Rystad Energy and the EIC.

Thanks again to our readers and please join us for our online panel session on 22nd April on “Marine and Shipping”.

OGV-ENERGY

OGVENERGY

@OGVENERGY

VIEW THE OGV MAGAZINE ONLINE AT www.ogv.energy/magazine

4 VER PARTNER COVER PARTNER 4 02 4 COVER PARTNER COVER FEATURE 4

Advertising Feature Advertising Feature

Advertising Feature

COVER PARTNER

Shore to ship to shore voyage planning solutions planning solutions e to ship to shore planning solutions Shore to voyage ship to shore voyage planning solutions for the oil and market market for the oil gas and gas market he oil and gasenergy market Shore to ship to shore voyage planning solutions for the oil and gas market

Advertising Feature

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www.ogvenergy.co.uk I April 2020 www.ogvenergy.co.uk I April 2020 www.ogv.energy I April 2021

and its products, please visit: www.seallecdis.com

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Film-Ocean invests in new ROV system for its fleet and new hires to support its market growth ROV specialist Film-Ocean Ltd, based in Aberdeenshire, has recently invested a six-figure sum in a Schilling Heavy Duty Work Class ROV (Remote Operated Vehicle) and plans to grow its workforce to support the company’s ambitious growth plans. The Schilling Heavy Duty Work Class ROV is capable of operating at depths of up to 4000m and is supported by an Active Heave Compensation Launch and Recovery Systems (AHC LARS). It is a highly manoeuvrable vehicle capable with a large payload. The HD Work Class ROV is well known within the industry as a high specification vehicle making it an ideal system for IRM, construction support and decommissioning work scopes especially in deeper waters. Latterly Film-Ocean’s ROV fleet has been deployed across the world with recent operations in UKCS,

Oceaneering Wins Integrated Rig Services Contract for Gulf of Mexico Development

MDL transpools flowlines for India The scope of work covered engineering support, on-site project management and the supply of equipment and services to carry out testing and transpooling of 6” static flowlines, stored in Port of Blyth, England. An MDL spread combined of a Second-generation and Third-generation Reel Drive Systems was used for transpooling of over 4,200m of product from 2 storage reels onto 2 MDL 9.2m installation reels. In 2018, MDL Asset Maintenance & Engineering carried out pressure testing and preservation works on 4 reels of the product on location - 2 of which have already been installed.

KBC – MySep partnership KBC (A Yokogawa Company) and MySep, announce a partnership to deliver accurate and consistent results in separation of fluids into their oil, gas and water components for process design, operation, and performance modelling. Applications span Production, Refining and Midstream processing. The integration of MySep’s separation technology with KBC’s Petro-SIM simulation software, eliminates over-reliance on vendors for vessel sizing and/or vessel performance estimates.

www.ogv.energy I April February 20212021

Oceaneering International, Inc. (Oceaneering) announces that its Subsea Robotics (SSR) and Offshore Projects Group (OPG) have been awarded an integrated rig services contract for covering the Khaleesi/Mormont and Samurai fields in the U.S. Gulf of Mexico. The work scope includes the provision of remotely operated vehicles (ROVs) with collocated ROV tooling and technicians, remote positioning and metrology survey resources, and installation and workover control system (IWOCS) equipment and technicians. Work is scheduled to begin in early 2021 and carry into 2022.

SJI™ P & A technology created by Titan Torque and HRG Well Solutions Titan Torque and HRG Well Solutions are proud to present the SJI™: an innovative, patent-pending technology, improving the overall efficiency of decommissioning projects. The SJI™ system optimises the conventional methods for the P&A of wells. To improve efficiencies, reduce costs and exposure in the Plug and Abandonment (P&A) market, the Slot Jet Isolate (SJI™) tool has been developed to overcome the existing challenges with the incumbent methods.

Mediterranean, West Africa including Angola, Ghana and Ivory Coast where the ROVs have been deployed on UWILD (Under Water Inspection in-Lieu of Dry Docking), construction and IRM (Inspection, Repair and Maintenance) operations supporting both oil and gas and offshore wind projects. As part of its 5-year growth plan, Film-Ocean has expanded its workforce by over 50% in the past two years. Recent appointments have seen several new positions being created, that have included an ROV Technical Support Engineer, Stores Person and Crewing Team Lead. To support contract awards and our growing fleet of ROV’s, Film-Ocean continues to actively recruit competent and skilled personnel, and we anticipate a further creation of between 40-50 offshore roles and some further onshore staff positions. “Investing in our people’s training and development ensures that we have a highly skilled, talented and competent workforce to enable us to deliver a best-in-class service to our global clients.” says Mel Lawson.

Maersk Training UK launches upgraded £720k training and safety centre Maersk Training UK (MTUK) has launched the first half of its refurbished Aberdeen safety and survival centre which has undergone a £720k refurbishment to ensure it meets the needs of the industry as it looks to the future and the energy transition. The investment has allowed for the training facilities to be upgraded and strengthens the centre’s safety offerings to the North Sea workforce. The installation of new technology will allow the centre to deliver training courses specifically for the renewables industry and enhances its service offering to the oil and gas sector, allowing MTUK to provide a complete service offering from the UK base.

Namaka Compliance Presentation of Athena to the UK Health and Safety Executive On the 25th of February Namaka Subsea, the sister company of Namaka Compliance, held an online meeting with the Health and Safety Executives, Inspector of Health & Safety (Diving Specialists) to discuss a variety of challenges that are being faced in the Oil and Gas Industry. As part of that meeting there was an opportunity to demonstrate how Namaka Subsea manage their personnel’s competence.

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ENERGY NEWS

APRIL 2021

UK NORTH SEA

Energy Review By Tsvetana Paraskova

Reports of UK ministers considering a possible ban on new exploration licences, industry reviews and forecasts for the UK oil and gas sector, government decarbonisation plans, mergers and acquisitions, and drilling and field development updates were the key themes in the UK oil and gas industry this month.

UK ministers are considering the possibility to ban new offshore oil and gas exploration licenses as a range of options for a potential change in the licensing regime, The Telegraph reported in the middle of March. A decision is expected to be taken soon, an industry source told The Telegraph. Options under consideration reportedly range from ending the issuing of licenses in 2040 to an immediate temporary pause in license issuing, or no changes at all, The Telegraph reports. Commenting on the story, OGUK Sustainability Director Mike Tholen said: “Any curtailment of activity by licencing constraints risks impeding the UK’s ability to deliver a net-zero future, damaging our domestic supply chain and increasing energy imports whilst exporting the jobs and skills.” Responding to a question about the possibility of no new licences in the North Sea, Scotland’s First Minister Nicola Sturgeon said during Question Time in Parliament that while Scotland’s transition away from fossil fuels “is well under way, but we need to do it in a way that supports people into new employment instead of leaving them unemployed and that does not substitute our energy for increased imports that add to our carbon footprint.” OGUK published in March its Business Outlook 2021, offering a first glimpse into the oil and gas sector’s ability to recover from the horrendous 2020. A total of £11.6 billion was spent on the development and operation of UKCS oil and gas resources and infrastructure in 2020, down by 23% from the £15 billion spent in 2019, and the lowest total expenditure since 2004. Spending will remain low this year, but it could see a slight rise compared to 2020, OGUK said, anticipating spending at between £11.4 billion and £12.4 billion.

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UK oil and gas production declined by 5% in 2020, with oil output falling by 7% and gas more stable at a less than 1% decline, OGUK’s report showed. OGUK expects that production will decline further in 2021 and 2022, with a fall of between 5–7% anticipated per year.

The UK oilfield services sector has opportunities to diversify and address lower carbon emissions, as well as focus on digitalisation and attracting talent, EY said in its new annual review of the UK oilfield services (OFS) industry with a focus on the energy transition and the opportunities for the sector.

“It is likely that following recent increases, the basin is entering a period of longer-term production decline and a steady stream of investment in new fields is required to ensure the effective management of decline rates,” OGUK said.

“With CapEx spend expected to grow modestly in 2021, the oil price recovering and demand growing as the vaccine rollout programmes continue and the UK and other economies emerge from lockdowns, the stage is being set for a broader industry recovery in 2021 and beyond. Two months into the year, it is encouraging to see signs of this recovery emerging, with acceleration expected in H2 2021 and 2022 and beyond,” Derek Leith, EY Global Oil & Gas Tax Leader, and Celine Delacroix, EY Global Oilfield Services Leader, wrote in the report.

Supply chain companies are still under pressure and it is likely that the sector will see increased levels of acquisitions and consolidations as companies restart sales processes post-COVID, the industry association noted. “The sector continues to face huge challenges, but however difficult they are to overcome, they are surmountable. Through collective working and shared commitment from industry and government, with the North Sea Transition Deal at its core, we can build a sustainable recovery and help to deliver the climate change ambitions of the UK,” Deirdre Michie, Chief Executive of OGUK, said in the foreword to the report. The UK oil and gas industry welcomed measures to support green energy transition in the Budget Statement from early March. “Central to all of this is the North Sea Transition Deal reaffirmed by the Chancellor today. Having powered the country for over 50 years, the UK’s oil and gas sector’s energy expertise is crucial to developing the green innovation required to see the UK achieve net-zero emissions by 2050,” OGUK’s Michie said. The Oil and Gas Authority’s (OGA) Environmental, Social and Governance (ESG) taskforce recommends enhanced disclosure and investor reporting for operators on the UKCS, including disclosing climate related data, better disclosure and transparency, and senior leadership teams setting the tone at company strategy level. The Government’s Industrial Decarbonisation Blueprint unveiled on 17 March is a key opportunity for the UK supply chain, OGUK said in response to the strategy. Sustainability Director Mike Tholen commented: “Many of our members are already active in decarbonisation projects and committed to bringing carbon capture and storage, hydrogen and offshore floating wind projects to life across the UK. This industrial decarbonisation strategy will help accelerate progress in net-zero incubator projects as well as enabling our worldclass supply chain to develop new low carbon solutions.” OGA also welcomed the Industrial Decarbonisation Strategy, with Director of Strategy Hedvig Ljungerud saying: “We welcome the commitment to carbon capture and storage and the increasing role of hydrogen in the Industrial Decarbonisation Strategy and will continue working with industry and government to help reduce emissions.” Flaring in the UK North Sea declined by 22% annually in 2020 as production facilities cut the overall volume to 33 billion cubic feet (bcf)—the lowest level of flaring on the UKCS on OGA records. “Reasons for the cut - which saw a year-on-year fall in every month - vary from field-to-field but include increasing use of flare-reduction technology on some platforms and fewer planned shutdowns, making 2020 a particularly low flaring year,” OGA said.

www.ogv.energy I April 2021

Going forward, the energy transition and the digital transition will be key themes in the UK sector, with companies well positioned to benefit from many growth opportunities related to the energy transition in Britain, EY said.

The UK is expected to drive the upcoming oil and gas projects in Europe, accounting for about 25% of the total projects which are likely to start operations by 2025, data and analytics company GlobalData said in a report. The proposed Rosebank project west of Shetland and the midstream project Deborah for underground storage of gas are some of the key expected projects. “The shallow waters of the North Sea will continue to drive the growth of upstream production projects in the UK. The upcoming projects’ list has a good mix of both oil and gas developments and will help the country to continue to meet its oil and gas needs and reduce reliance on imports,” said Soorya Tejomoortula, Oil & Gas Analyst at GlobalData. Several mergers and acquisition deals have also advanced over the past month. ExxonMobil agreed to sell most of its nonoperated upstream assets in the UK central and northern North Sea to NEO Energy for more than US$1 billion. Through the acquisition, NEO Energy will double its production, and following completion, NEO’s expected pro-forma 2021 production will be around 70,000 barrels of oil equivalent per day (boepd), growing organically to more than 80,000 boepd in 2024 through ongoing field developments. NEO Energy also announced it would buy independent oil and gas company Zennor Petroleum, which includes a portfolio of assets located in the Central and Northern North Sea. Through the acquisition of Zennor, NEO will take ownership of a quality portfolio of assets centred around the strategic Britannia and ETAP production hubs. Waldorf Production signed a deal with Cairn Energy for the acquisition of Cairn’s non-operated 29.5% interest in Kraken and 20% interest in the Greater Catcher Area licences. “The latest acquisitions continue what has been blockbuster start to the year for UK M&A with buyers (and sellers) buoyed by the recent recovery in prices,” Neivan Boroujerdi, principal analyst, Europe upstream, at Wood Mackenzie, said, commenting on the recent deals. WoodMac reckons there could be up to another US$5 billion worth of assets changing hands this year. “Despite the UK’s maturity, the deals highlight the attractiveness of the country’s relatively low headline tax rate, which enables assets to generate significant free cash flow at current prices,” Boroujerdi said. In another asset deal, EnQuest has signed an agreement with Anasuria Hibiscus UK Limited to farm down an 85% working interest in, and transfer operatorship of, the Eagle discovery. EnQuest will keep a 15% non-operating working interest.

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UK North Sea of researchers that includes Scientific Aviation, a provider of airborne emissions sensing, and Texo DSI, a UK-based drone platform provider, to evaluate advanced methods for quantifying facility-level offshore methane emissions, identify key sources, and prioritise mitigation actions, Neptune Energy said. Aberdeen-based integrated solutions specialist EnerMech said it would grow its UK operations after securing eight new contracts in the first three months of 2021. The campaigns are a combination of new and extended contracts and will be split across its bases in Aberdeen, Scotland and Great Yarmouth, England. Centrica said in its preliminary 2020 results it still intended to sell Spirit Energy. i3 Energy plc announced it planned to declare a maiden dividend in Q1 2021 and continued discussions with a potential farm-in partner for the Serenity discovery. DNV GL has won a three-year contract by Total E&P UK to provide multiple services across the full portfolio of Total’s oil and gas assets in the UK North Sea. Jersey Oil and Gas has selected the concept development for the Greater Buchan Area (GBA). The three-phase development is centred around a single integrated wellhead, production, utilities and quarters platform located at the Buchan field - the GBA hub. Neptune Energy and Environmental Defense Fund (EDF) announced a scientific collaboration to test a first-of-its-kind approach for measuring oil and gas methane emissions from offshore oil and gas facilities. EDF will coordinate a team

Union Jack Oil has bought from Cambridge Petroleum Royalties a 2.5% cash generating royalty interest of the revenues from oil and gas production from the Claymore, Piper and Scapa oilfields in the Central North Sea. Independent Oil and Gas has identified additional resources and opportunities on the Goddard and Abbeydale licences in the UK Southern North Sea. Goddard gross 2C contingent resources increased from 108 billion cubic feet (BCF) to a new management estimate of 132 BCF. The gross 2C contingent resource estimates at Abbeydale increased from 6 BCF to 23 BCF, significantly increasing its commercial potential. “The new data shows enhanced potential for both licences to host production hubs with step-out exploration and appraisal upside,” CEO Andrew Hockey said. Serica Energy spud on 17 March the Columbus 23/16f-CDev1 development well in the UK Central North Sea. The well is being drilled with the Maersk Resilient Heavy Duty Jack Up rig and is expected to take around 70 days.

DISCOVER THE

BRENT OIL PRICES OVER THE YEARS April review

YEAR AGO

- BRENT OIL PRICE 2020 - $18.38 The UK's oil and gas industry is warning that 30,000 jobs could be lost as a result of the coronavirus pandemic and the low oil price. A global oversupply of oil has pushed prices to their lowest level in 20 years. In a survey of its members, Oil and Gas UK (OGUK) said many firms would struggle to survive. It has called for the transition to net-zero greenhouse gas emissions to be at the heart of its recovery plan. At its peak, a barrel of Brent Crude oil sold for about $120 but in recent weeks, that has fallen as low as $16 with no real sign of it recovering. The industry fears the problems will last much longer than the Covid-19 pandemic, and that has meant many workers are being laid off rather than furloughed.

YEARS AGO

- BRENT OIL PRICE 2016 - $41.58 U.S. oil prices dipped after an early rise to 2016 peaks, but posted a gain of about 20% for April, the largest monthly gain in a year. Futures held losses after oilfield services firm Baker Hughes reported its weekly U.S. oil rig count fell by 11 to 332. At this time last year, drillers were operating 679 oil rigs. A weaker dollar and optimism that a global oil glut will ease have boosted crude futures about $20 a barrel or more since they plumbed 12-year lows below $30 in the first quarter. With prices less than $5 away from $50 a barrel, investment bank Jefferies said the market “is coming into better balance” and would flip into undersupply in the second half of the year. But others warned that the rally was driven by investors holding large speculative positions, while oil stockpiles were still high, with a Reuters survey showing OPEC output in April rising to its most in recent history.

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YEARS AGO

- BRENT OIL PRICE 2011 - $123.26

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SUBSEA REVIEW

RIGGING AND LIFTING

RISK MANAGEMENT & WELLBEING

The two VWS treatment units, designed for DSME’s floating production storage and offloading vessel (FPSO), will be installed in the Cravo-Lirio-OrquideaVioleta (CLOV) Fields. The project is expected to be completed in January 2012. The ultrafiltration system and SRP will be installed on the FPSO topsides to provide the necessary seawater treatment for subsea well injection. The ultrafiltration unit, which is the pre-treatment step to the SRP, will have a capacity of 66,208 m3/day (391,288 BWPD) and the sulphate removal package will treat 59,496 m3/day (374,230 BWPD). The fine filtered seawater (nominally 0.01µm) from the ultrafiltration system will provide the feed for the SRP, which will then remove sulphates and other divalent ions from injection water to enhance oil recovery using Dow Filmtec membranes. The removal of these ions reduces the tendency of barium sulphate and strontium sulphate scale to form in the reservoir, and enhances oil recovery.

ENERGY NEWS

By Tsvetana Paraskova

Europe

Energy Review

Oil & Gas Equinor and its partners in the Åsgard licence have decided to invest just under US$165 million (1.4 billion Norwegian crowns) to further develop the field and implement the Åsgard B lowpressure project. Low-pressure production would be crucial to securing improved recovery from the Åsgard field in the Norwegian Sea, which started producing in 1999. Equinor and its partners Vår Energi and Petoro announced an oil discovery in an exploration well in the Barents Sea, near the huge Johan Castberg field. Recoverable resources are so far estimated at between 31 and 50 million barrels of recoverable oil. “This discovery strengthens our belief in the opportunities that exist, not least around the Castberg, Wisting, Snøhvit and Goliat areas,” said Nick Ashton, Equinor’s senior vice president for exploration in Norway. Operator Neptune Energy and its partners Wintershall Dea, Petoro, and OKEA announced at the end of February they had started production

Low-Carbon Energy Offshore wind is set to become “the new hiring haven for energy jobs”, according to an analysis from Rystad Energy. Demand for offshore wind staff is set to triple by the end of this decade, surging to 868,000 full-time jobs from an estimated 297,000 jobs in 2020. The surging demand for offshore wind energy jobs will be visible as soon as in the middle of the decade, as jobs demand could reach about 589,000 in 2025. Europe, Asia outside of China, and the Americas will be the key drivers of job creation in the offshore wind industry, Rystad Energy estimates. Europe, which dominates the offshore wind installed capacity globally, could see the number of jobs in the sector triple to 350,000 by 2030, from 110,000 jobs.

www.ogv.energy I April 2021

New oil and gas discoveries and project developments offshore Norway, the UK’s decarbonisation and offshore wind plans, and more projects for low-carbon energy solutions from major oil and gas companies and renewable energy giants were the highlights of Europe’s energy scene in the past month.

from the Gjøa P1 development in the Norwegian sector of the North Sea.

RenewableUK’s Chief Executive Hugh McNeal noted:

In early March, Neptune Energy also started, together with its partners, drilling on the Dugong appraisal well in the Norwegian sector of the North Sea. The Neptune-operated Dugong discovery was one of the largest discoveries on the Norwegian Continental Shelf last year, with Neptune estimating recoverable resources at between 40 - 120 million barrels of oil equivalent.

“This is a big-bang moment for offshore wind manufacturing in the UK which will drive investment in a globally competitive domestic supply chain.”

Seven companies applied to obtain licences in Norway’s least explored areas in the 25th licensing round, the Ministry of Petroleum and Energy said at the end of February. The licensing round includes one area in the Norwegian Sea and eight in the Barents Sea, and the Ministry aims to award new production licenses in the round in the first half of 2021. INEOS Energy has signed an agreement to buy all oil and gas interests from Hess Corporation in Denmark, by acquiring the subsidiary HESS Denmark ApS for a total of US$150 million. The deal comprises 61.5% of the HESS operated Syd Arne oil field, complementing the 36.8% share INEOS already holds, and 4.8% in the INEOS operated Solsort field.

“Oil and gas workers will also benefit from this expected growth in offshore wind employment globally, as they share some skills sets and essential offshore knowledge. Offshore wind areas such as foundation manufacturing, offshore construction, project development, and O&M have been highly relevant to oil and gas operations,” said Alexander Fløtre, Rystad Energy’s Product Manager for Offshore Wind. UK Chancellor Rishi Sunak’s budget from early March announced measures to support offshore wind manufacturing. “The Chancellor is right to highlight the fact that the UK needs investment in green growth and that offshore wind is an innovative industry in which we have a global competitive advantage,” Co-Chair of the Offshore Wind Industry Council and Vattenfall’s UK Country Manager, Danielle Lane, said, commenting on the measures.

“The next wave of renewable projects could inject £20bn of private investment into the economy and support over 12,000 jobs. Ramping up onshore and offshore wind, alongside hydrogen and other renewables, is the key to unlocking a rapid, low-cost transformation of the energy sector,” McNeal added. The UK government approved on 11 March a £95 million government investment for two new offshore wind ports which will be built in the Humber region and Teesside, creating 6,000 new jobs. “Thanks to Teesside receiving free port status, as well as government backing, GE Renewable Energy will build a new state-of-the-art offshore wind blade manufacturing factory at the site, which will directly create around 750 of the 3,000 high quality jobs created by the Teesside port and approximately 1,500 indirect jobs in the area,” the government said. GE Renewable Energy announced the plans to open the offshore wind blade manufacturing plant in Teesside a day earlier, with GE Renewable Energy CEO Jerôme Pécresse saying “The UK’s target to commission 40 GW of offshore wind by 2030 is ambitious and requires that we invest in local production capabilities to accompany this effort.” On 17 March, the UK government announced its Industrial Decarbonisation Strategy, which allocates over £1 billion to drive down emissions from industry and public buildings like schools, hospitals, and council buildings. The government also announced a £171 million Industrial Decarbonisation Fund to support financing for several projects, including the carbon capture, usage and storage (CCUS) project HyNet North West, Scotland’s Net Zero Infrastructure project, the Net Zero Teesside and the Northern Endurance Partnership, the Zero Carbon Humber Partnership project which aims to turn the Humber

Europe

bp is also developing plans for the UK’s largest hydrogen project, which would be located in Teesside and would produce up to 1 GW of ‘blue’ hydrogen – or 20% of the UK’s hydrogen target – by 2030 and support the development of the region as the UK’s first hydrogen transport hub. Commenting on the proposed project, Mike Tholen, OGUK’s Sustainability Director said: “This is a brilliant example of how OGUK members such as bp are pioneering low-carbon energy innovations which will transform our economy and accelerate the UK’s drive to net zero.” Germany-listed Pacifico Renewables Yield AG has partnered with project developer Boom Power, securing priority access to Boom Power’s pipeline of more than 1 GW of utility-scale photovoltaic and battery storage assets in the UK currently under development. Pacifico’s pipeline thus expands from more than 600 MW to over 1.6 GW. region into a net zero cluster by 2040, and the South Wales Industrial Cluster that aims to create a net zero industrial zone from Pembrokeshire to the Welsh/ English border by 2040. “We want to support existing industry and encourage the growth of new, low carbon sectors in the UK. To achieve this, we need to help make low carbon investments become a viable option for industry, meeting industry’s need for short term pay back on investment,” the Government’s strategy says.

In Renewable Energy Company News: Equinor said its Dogger Bank joint venture with SSE Renewables and Eni had awarded UK-based North Star Renewables contracts for delivering three service operation vessels (SOVs) for the operation of Dogger Bank A and B phases. The total value of the contracts including options is estimated at about £270 million.

The UK government approved on 11 March a £95 million government investment for two new offshore wind ports which will be built in the Humber region and Teesside, creating 6,000 new jobs.

The Port of Cromarty Firth and partners have launched a plan to establish a green hydrogen hub in the Highlands that will see Scotland lead the world in hydrogen technology. One of the projects will provide distilleries in the region with hydrogen. The delivery of green hydrogen to Glenmorangie, Whyte and Mackay, and Diageo will give them the opportunity to decarbonise the heating of their distilleries and maltings, by using hydrogen as a substitute for fossil fuels to create the energy needed to make steam so the distilling process. “In the long term, there is a huge opportunity to decarbonise Highland industry, transport and heat, as well as exporting green hydrogen to other parts of the UK and mainland Europe, which doesn’t have the same offshore wind capacity as Scotland,” Bob Buskie, Chief Executive of the Port of Cromarty Firth, said. bp joined forces with Volkswagen Group to expand ultra-fast electric vehicle charging across Europe. The companies plan to develop ultra-fast EV charging networks at bp retail sites across the UK, Germany, and elsewhere in Europe, while bp’s charging networks will be integrated into VW Group vehicles. “By deploying ultra-fast charging, rapidly and at large scale, we can establish a leading position and help accelerate the take-up of EVs,” said Emma Delaney, bp’s executive vice president, customers and products.

Europe, which dominates the offshore wind installed capacity globally, could see the number of jobs in the sector triple to 350,000 by 2030, from 110,000 jobs.

Germany’s energy company RWE is building its first floating photovoltaic project, the Amer floating PV project, which consists of 13,400 solar panels that will float on a lake near the Amer power plant in Geertruidenberg in the Netherlands. Renewable energy giant Ørsted signed in March a memorandum of understanding (MoU) with Aker Carbon Capture and Microsoft to explore ways to support the development of carbon capture and storage at biomass-fired heat and power plants in Denmark. “Carbon capture will most likely be an important part of the green transition, and we see opportunities for capturing the carbon at some of our biomass-fired heat and power plants and either store it underground in order to achieve negative emissions or use the carbon for the production of green fuels in Power-to-X facilities. Therefore, we're currently exploring the regulatory, technical, and economic possibilities of carbon capture at our facilities,” said Ole Thomsen, Senior Vice President at Ørsted. An industrial initiative, backed by EIT InnoEnergy, plans to build the world’s first large-scale fossil-free steel plant in Boden-Luleå in northern Sweden, using green hydrogen. The plan for the factory includes cheap renewable power, use of green hydrogen to process the iron, innovative downstream steel manufacturing, and partnership with key players in the region. The initiative mobilizes around 2.5 billion euro in investments and will create 10,000 direct and indirect jobs. Large-scale production is planned to begin as early as 2024, and an annual throughput of 5 million tons of high-quality steel is planned to be reached by 2030. U.S. oil and gas supermajor Chevron Corporation announced an investment in Baseload Capital AB, a Sweden-based private investment company focused on development and operation of low-temperature geothermal and heat power assets. “Chevron’s investments in geothermal power reflect our ongoing focus on helping to advance the world’s transition to a lower-carbon future,” said Barbara Burger, Chevron’s Vice President, Innovation and President of Technology Ventures.

ENERGY NEWS

By Tsvetana Paraskova

ENERGY OVERVIEW

The Unknowns of 2021

The US oil and gas industry and the global energy markets entered 2021 with a lot of unknowns.

Two of the biggest unknowns in the US will be how President Joe Biden’s climate and energy policies will impact oil and gas permitting, leasing, and production on federal lands and in federal waters, and how US oil producers will react to the oil price rally so far this year. The price gains have sent the US benchmark West Texas Intermediate up to $65 per barrel, a level at which most operators can profitably drill new wells in the US shale patch. While it is certain that US crude oil production will not return to the pre-pandemic records of nearly 13 million barrels per day (bpd) this year and next, American output still has the capacity to surprise the market to the upside and potentially undermine the OPEC+ group’s current efforts to tighten the market. Early into 2021, most public exploration and production companies in the US are showing the promised restraint in spending on drilling, preferring instead to reward shareholders and reinvest a larger portion of their cash flows into returns to shareholders. Even at higher oil prices, the larger listed US firms continue to guide for modest increases in production this year compared to last year.

The Million-Dollar Question: Will Higher Cash Flows Result in Output Boost? US tight oil operators kept a 55% reinvestment rate in the fourth quarter of 2020, maintaining their commitment of keeping balanced operations despite rallying oil prices that made drilling economics much more favorable across most regions compared to a few months earlier, Rystad Energy said in a report in March. “The number of operators that balanced their spending in 4Q20 reached 90%, a level never previously recorded in the history of US shale,” Rystad Energy noted. The peer group of 28 shale producers that the energy research company tracks accounts for 43% of the estimated 2020 US tight oil output. That peer group reported the second-highest level of free cash flow in the shale industry’s history, at $2.8 billion in Q4, following the peak of $3.5 billion in the previous three months, Rystad Energy said.

www.ogv.energy I April 2021

“Operators continue to focus on balanced spending and free cash flow at levels they have never done before,” the research firm noted. The top public E&P companies seem to be sticking with promises to keep a rein on spending on drilling activity, but the smaller privately-held firms could be the wild card in estimating US oil production this year. The closely-held operators generally boost their revenues and profits with more drilling, especially when prices allow profitable drilling in many fields in the shale patch. Those smaller firms do not feel the pressure of the stock market and shareholders, unlike the listed companies which have been punished by the market for not rewarding shareholders enough over the past decade.

bbl adds 1 million by the mid-2020s and US$70/ bbl another 1 million b/d,” Beeker noted. Due to higher expected oil prices, the US Energy Information Administration (EIA) expects in its March Short-Term Energy Outlook (STEO) crude oil production to average 12 million bpd in 2022, an upward revision of 500,000 bpd compared to the February projection. This year, production is seen slightly down from 2020, at 11.1 million bpd in 2021, compared to 11.3 million bpd last year.

US Oil Production Growth Set To Slow Due To Leasing Restrictions

Apart from the unknowns of how the US oil and gas industry will react to oil price trends this year, the sector is The US shale patch is also bracing for possible changes to oil leasing and on track to generate permitting requirements a lot of cash flow this governing federal lands and federal waters. year, as operators

The US shale patch is on track to generate a lot of cash flow this year, as operators keep budgets low while oil prices rally. The top 10 independents are set to generate keep budgets low In Texas, the biggest nearly $10 billion of free oil-producing US state, a while oil prices rally. cash flow over the next small portion of onshore 12 months at WTI prices of federal lands would be $50 a barrel, and $20 billion if impacted directly by leasing the US benchmark averages $60 restrictions, Jason Modglin, per barrel, according to Alex Beeker, President of the Texas Alliance Principal Analyst Corporate Research, at of Energy Producers, said at the virtual Wood Mackenzie. Congressional Western Caucus series. The Drilling activity and the number of active rigs are picking up from the lows in August 2020, but another 150 oil rigs would be needed just to reverse the production decline from the 2020 hiatus in drilling. At the present rate, that will take six months, Beeker noted. The milliondollar question is will rising cash flows translate into more rigs. “Our sense is that most still intend to keep a tight rein on spend in 2021,” WoodMac’s Beeker said. “The risk is that capital discipline wilts under the heat of sustained high prices, and external capital floods back into the sector. WTI at US$50 keeps US Lower 48 output flat at 9 million b/d, US$60/

main impact in Texas will be in challenges to offshore leasing and permitting, Modglin added, noting that a study commissioned by the American Petroleum Institute (API) found that a total interruption of federal leasing and permitting would lead to US offshore natural gas and oil production decreasing by 68% and 44%, respectively, raising at the same time US imports of crude oil.

The outcome of the Administration’s review of federal leasing and permitting policies is still uncertain, but Garrett Golding and Kunal Patel, business economists in the Research Department at the Dallas Fed, tried to estimate the impact of a range of restrictions on the Permian Basin in a report in March.

U.S.

Australia

By Andy Hogan

Permian oil production is expected to rise in all three scenarios—little-changed policies; no new federal leasing but existing leaseholders continue receiving drilling permits; and the most extreme scenario, in which no new federal permits or extensions are granted starting in 2023, when the most-recently issued permits will expire. With little-changed policies, Permian Basin oil production is set to grow from 4.3 million bpd today to 5.3 million bpd in December 2025. New Mexico’s production will increase from 1.0 million bpd to 1.5 million bpd, according to Dallas Fed’s economists. In the hybrid case assuming no new federal leasing, but existing leaseholders continue receiving drilling permits, Permian production would rise to 5.1 million bpd in 2025, and New Mexico’s oil output would rise only slightly to 1.1 million bpd. In the restrictive-case scenario, however, in which no new federal permits or extensions are granted starting in 2023, Permian production still rises to 4.8 million bpd in 2025, but New Mexico’s output drops to 700,000 bpd, as many areas of the Permian in New Mexico are on federal lands. “Half of New Mexico’s production comes from federal acreage in the Permian Basin, and the anticipated actions would slow economic growth, adversely affecting that state’s employment and tax collections,” the Dallas Fed said. The analysis focused on the Permian, but the economists expect production from other basins to also drop compared to business-as-usual forecasts. In Wyoming, for example, the federal lease moratorium will impact 75% of the state’s conventional fields and 60% of drillable land, the University of Wyoming’s Enhanced Oil Recovery Institute (EORI) said in a report in early March. “This policy will restrict, or possibly prevent, access to 2.9 billion barrels of potentially recoverable oil reserves on federal lands and the associated $12.9 billion in tax revenue,” the report says. This year is already shaping up as a crucial year for the US oil and gas industry. It will show how well – financially and production-wise – US operators have handled the worst price crash in decades, and how much future federal leasing policies would impact the sector.

“The View from Down Under” Preparations continue for a small ramp up in offshore activity across Australasia. The Maersk Deliverer semi sub is believed to have resumed operations for Inpex on the Ichthys Phase 2 campaign after a delay due to an incident on the rig, OMV NZ continue to drill using an Archer rig on the Maui A platform in the Taranaki Basin, still in New Zealand the outcome of OMVs’ tender for a large jackup for a drilling campaign on the Maui B platform over 2022 is expected imminently. Beach Energy spudded the Artisan-1 exploration well in the Otway Basin, offshore Western Victoria at the very end of February, this is the first of 6 firm and 3 optional wells in the area using the Diamond Ocean Onyx semi. The campaign got off to a good start when Beach announced at the end of March that the Artisan-1 well had encountered hydrocarbons. Preparations are underway by Santos to use the Noble Tom Prosser Jackup to drill 3 x 90day infill wells on the Bayu Undan field in the Timor Sea, it has also been announced that the rig will be used to drill 3 exploration wells off the NW coast after Bayu Undan. Santos is also preparing to bring the Valaris MS-1 semi sub back to Australia to drill three infill wells on the Van Gogh field off the NW coast. The rig, formerly known as the Atwood Osprey, has only ever worked in Australia, commencing it’s maiden contract for Chevron in 2011 before being stacked in Labuan since 2018. The Van Gogh work is expected to keep the rig busy for 5 to 6 months. The rig is believed to be a leading candidate for the 300-day Woodside Enfield P&A campaign due to start at the end of the year.

SapuraOMV will be taking the Valaris 107 jackup to drill the Eagle exploration well off the NW coast, Jadestone Energy will then take the rig for drilling and intervention work on the Montara field, both of these programmes were due to take place in 2020 and were delayed due to the combination of COVID and low oil price. The Ocean Apex semi sub has been stacked off Rottnest Island just off Perth for the last few weeks, it is due to mobilise for Woodside around May to for a 3 well campaign on Great Western Flank and the Lambert deep well which will keep it working to into early 2022. ENI are still evaluating tender responses for an intervention vessel for the Woollybutt P&A and the NZ Government will be issuing an RFP for a vessel or rig to P&A the Tui field, both of these campaigns are planned to take place over the Southern Hemisphere summer. The Umuroa FPSO and most of the seafloor infrastructure at Tui is due to be removed by the middle of this year. The Northern Endeavour Task Force have yet to issue enquiries / tenders for the decommissioning of the Corallina / Laminaria fields, the FPSO continues to be maintained in ‘Lighthouse Mode’ by UPS on behalf of the NETF.

“The View from Down Under” is brought to you by: Networked Energy Consulting Pty Ltd, based in Perth, WA, Australia

ENERGY NEWS

MIDDLE EAST Energy Review By Tsvetana Paraskova

The surprise decision of the OPEC+ alliance in early March and a flurry of oil and gas contracts and strategic agreements signed by some of the biggest companies in the Middle East were the key developments in oil and gas in the region this past month.

OPEC+ Surprises Oil Market

Oil Prices Spike

OPEC and its non-OPEC partners led by Russia decided on 4 March to keep their collective oil production nearly flat in April, compared to March. The ministers of the OPEC+ group decided to roll over the production levels of March for the month of April, with the exception of Russia and Kazakhstan, which will be allowed to increase production by 130,000 barrels per day (bpd) and 20,000 bpd respectively, due to continued seasonal consumption patterns. In addition, Saudi Arabia will keep its unilateral extra cut of 1 million bpd into April, although it had initially said the additional cut would only last for February and March.

As a result of the OPEC+ decision, oil prices rallied amid expectations of even tighter oil market going forward. Brent oil prices even hit $70 a barrel on 8 March, for the first time since the pandemic started, after Saudi Arabia said the previous day there was an attempt to target the Ras Tanura Port, one of the world’s largest oil shipping ports.

The OPEC+ decision to basically roll over the 7-million-bpd cut into April and the extra Saudi cut took the oil market by surprise, as most analysts and forecasters had expected easing of the cuts by as much as 500,000 bpd and Saudi Arabia reversing the additional reduction. “OPEC+ took the market by surprise today when it decided to roll over its quota, saying that rather than anticipate a demand recovery, the group would wait to see it actually recover,” Ann-Louise Hittle, vice president, Macro Oils, at Wood Mackenzie, said, commenting on the decision. “If OPEC+ does not increase output in April, except the small amounts for Russia and Kazakhstan, the stock draw will be significantly more than 1 million b/d next month, as the summer demand season looms. We expect oil prices to rise toward $70-$75 per barrel during April,” WoodMac said.

www.ogv.energy I April 2021

The Middle East will be likely to lead shelf developments with 40% of the total value as global offshore commitments are poised for a record recovery through 2025, Rystad Energy said in a report in early March.

However, analysts and major oil-importing countries such as India have started to warn that high oil prices could stall the still fragile global oil demand recovery. India is outright saying that oil prices nearing $70 could undermine the consumer-led recovery in demand, as petrol and diesel prices in the world’s third-largest oil importer hit record highs at the end of February. According to WoodMac’s Hittle: “The risk is these higher prices will dampen the tentative global recovery. But the Saudi Energy Minister, Prince Abdulaziz, is adamant OPEC+ must watch for concrete signs of a demand rise before he moves on production.”

Middle East Set To Lead Shelf Developments The Middle East will be likely to lead shelf developments with 40% of the total value as global offshore commitments are poised for a record recovery through 2025, Rystad Energy said in a report in early March. For the purpose of the analysis, Rystad Energy has defined that a project is committed when more than 25% of its overall greenfield capital expenditure (CapEx) is awarded through contracts.

Middle East Rystad Energy expects 592 commitments of global offshore projects between the beginning of 2021 and the end of 2025, more than the 355 project commitments in the period 2016-2020 and more than the 478 projects in the period 2011-2015, before the previous oil price crash. Between 2021 and 2025, “We expect ultra-deepwater activity to be primarily concentrated in South America, with over 50% of the total committed value, while the Middle East is likely to lead shelf developments with 40% of the total value,” Rystad energy noted.

Contracts & Strategic Agreements The major state oil and gas firms in the largest oil and gas producers in the Middle East – Saudi Arabia, the United Arab Emirates (UAE), Kuwait, and Qatar – signed many development contracts with western firms as well as strategic agreements to deliver oil and gas to the most important oil and gas growth market, Asia. Petrofact said that its Lower Fars heavy oil development project team had completed the successful integration of Kuwait Oil Company’s new Crude Oil Control Centre, where Petrofac’s expertise was used to upgrade technology and equipment, improving the effectiveness of operations. UAE-based Lamprell was awarded an Engineering, Procurement, Construction and Installation (EPCI) contract by Saudi Aramco as part of their Long-Term Agreement Programme (LTA) with Lamprell. The works will consist of two offshore production deck modules and associated pipeline and subsea cables in Saudi Aramco’s Marjan Field in the Gulf, off Saudi Arabia’s East Coast and is one of the largest oil and gas fields in the region. “Marjan is a strategic asset of global significance and we are honoured to play a role in its development. The award reinforces our commitment to our strategy and we look forward to working on further opportunities in the region,” Lamprell’s chief executive Christopher McDonald said in a statement. Italy’s Saipem was awarded by Qatargas a contract for the offshore development of the North Field Production Sustainability Project worth approximately US$1.7 billion, the engineering, drilling, and construction firm said. Saipem’s scope of work will include the Engineering, Procurement, Construction and Installation of various offshore facilities for the extraction and transportation of natural gas, including platforms, supporting and connecting structures, subsea cables, and anticorrosion internally cladded pipelines. Qatar Petroleum, which has recently approved the North Field expansion project, awarded in early March a major engineering, procurement, and construction (EPC) contract to Samsung C&T Corporation for the expansion of the LNG storage and loading facilities located within Ras Laffan Industrial City as part of the North Field East (NFE) Project. A few days before that, Qatar Petroleum signed longterm LNG supply agreements with Bangladesh and Pakistan. Under the 10-year agreement with Pakistan, Qatar will supply up to 3 million tons per annum of LNG, beginning in 2022 and until the end of 2031. The agreement for Bangladesh saw Qatar Petroleum entering into a long term Sale and Purchase Agreement with commodity trading giant Vitol for the supply of 1.25 million tons per annum of LNG to Vitol’s final customers in Bangladesh.

ADNOC signed in early March another agreement— to explore opportunities to boost the hydrogen economy. ADNOC and South Korea’s GS Energy agreed to explore opportunities to grow Abu Dhabi’s hydrogen economy and carrier fuel export position.

Qatar Petroleum also signed a multi-party agreement with LNT Marine, the American Bureau of Shipping (ABS), and Shanghai Waigaoqiao Shipbuilding (SWS) to collaborate on the development of new medium and large LNG carrier designs. Other signatories to the Agreement include Qatargas and affiliates of ConocoPhillips, ExxonMobil, Shell, and Total, Qatar Petroleum said on 10 March. In the UAE, the Abu Dhabi National Oil Company (ADNOC) said on 3 March it would remove destination restrictions on its Murban, Upper Zakum, Das, and Umm Lulu crude grades, starting from the first traded contract month of the new ICE Murban Crude Oil Futures Contract. ICE plans to launch the ICE Futures Abu Dhabi (IFAD), Murban Crude Oil futures, and related cash settled derivatives and inter-commodity spreads, on 29 March 2021. “By lifting destination restrictions, ADNOC crude grades will become more attractive to global customers and the wider trading community. This is another important step as we prepare for the launch of the new Murban Futures Contract on the 29th March,” said Khaled Salmeen, Executive Director of ADNOC’s Downstream Industry, Marketing and Trading directorate. ADNOC also signed a strategic framework agreement with Malaysia’s Petroliam Nasional Berhad (PETRONAS) to explore opportunities for collaboration across the full oil and gas value chain. As part of the agreement, ADNOC and PETRONAS will jointly explore opportunities for collaboration in the exploration, development, and production of conventional and unconventional hydrocarbon resources in the Emirate of Abu Dhabi. ADNOC signed in early March another agreement—to explore opportunities to boost the hydrogen economy. ADNOC and South Korea’s GS Energy agreed to explore opportunities to grow Abu Dhabi’s hydrogen economy and carrier fuel export position. “As a stakeholder and a partner of the ADNOC Upstream Concessions, we are excited to strengthen this partnership by jointly seeking opportunities within the blue hydrogen ecosystem,” said Yongsoo Huh, President and CEO of GS Energy.

MIDDLE EAST REVIEW SPONSORED BY

At Craig International, procurement isn’t just about processes, products and numbers. We promote a culture of ownership among our people, who are trusted to get on with the job on your behalf. We’re proud of how we serve clients. We’re always looking for new ways to add value and routinely introduce new technological solutions to make service delivery even simpler, smoother, faster. When it comes to procurement, we get it. Adding value, innovation and efficiency at every turn in your supply chain. www.craig-international.com

WORLD PROJECTS

WORLD PROJECTS MAP

UAE - ADNOC Hail and Ghasha Sour Gas Development US$15bn

The development which comprises of four EPC packages is once again moving forward. The project has seen delays in the submission of bids since March 2020. Bids for the EPC packages are said to have been submitted at the end of February 2021, with a final investment decision now expected in the second half of 2021.

APRIL 2021

The EIC delivers high-value market intelligence through its online energy project database, and via a global network of staff to provide qualified regional insight. Along with practical assistance and facilitation services, the EIC’s access to information keeps members one step ahead of the competition in a demanding global marketplace. The EIC is the leading Trade Association providing dedicated services to help members understand, identify and pursue business opportunities globally. The EIC is renowned for excellence in the provision of services that unlock opportunities for its members, helping the supply chain to win business across the globe.

WORLD PROJECTS SPONSORED BY

USA - Dominion Energy Coastal Virginia Offshore Wind (CVOW) US$3bn

MALAYSIA - Hess Block PM302 (NMB Development) Phase 4A US$100mn

FRANCE - EloMed Gruissan Floating Turbine Development Project US$215mn

CHILE - Aker Clean Hydrogen Green Hydrogen and Ammonia Plant (Aker) US$40mn

Siemens Gamesa has signed a contract with Cadeler for the transport and installation of the Siemens turbines that will be used as this and the Sofia and Hai Long offshore wind projects. The SG14222 DD turbine model is scheduled be commercially available in 2024, with each turbine having a capacity of 15MW.

Sapura Energy has been awarded the EPCC contract for NMB Phase 4A which will include the development of remote WHPs in the Dahlia, Kangsar and Teratai fields. Scheduled to come on stream in the second half of 2022, Ranhill Worley has been subcontracted by Sapura to undertake engineering work.

Bureau Veritas has been awarded a contract to provide project certification for the 30MW FLOW demonstration project. The scope covers design specifications, the integrated load analysis, and the design evaluation with a review of analysis reports, structural drawings and specifications.

Aker Solution's newly launched Aker Clean Hydrogen and Mainstream Renewable Power have signed a letter of intent to explore the development of green hydrogen and low-cost ammonia production in Chile. The companies will collaborate on developing a complete and commercially viable green value chain in Chile, using renewable power from Mainstream’s portfolio of wind and solar park projects in the country.

www.ogv.energy I April 2021

WORLD PROJECTS

03 19

8 6 9 5

BRAZIL - Karoon Patola Oil Field – Subsea Tie-Back US$130mn

The oil field development which will see the drilling two wells tied-back 3.5 km to the Itajai FPSO, is expected to reach a final investment decision by the end of the second quarter of 2021, with first oil scheduled for Q4 2022.

QATAR - Qatargas Ras Laffan LNG Liquefaction Expansion 2 US$10bn

UGANDA - Total Lake Albert Development – Block 1 and 2 (Tilenga) US$2.2bn

Qatar Petroleum is aiming to make a final investment decision potentially by the end of 2021 on the second expansion phased of the North Field Expansion, known as North Field South. The phase will involve the construction of two new liquefaction trains, which would see LNG output in Qatar reach 126 mtpa by 2027.

Total, CNOOC and the Ugandan government are planning to take a final investment decision on the Tilenga and Kingfisher developments in the first half of 2021, and perhaps as early as April. For the Tilenga facilities McDermott is the favoured bidder for the EPSCC contract.

9 ARGENTINA - Total Fenix Offshore Gas Field US$1bn

WORLD PROJECTS SPONSORED BY

Joint venture partner Wintershall has said that a final investment decision could be announced by the end of 2021. The FID announcement will be dependent on how the Argentine government handles the Plan Gas 4 subsidy programme.

www.the-eic.com

MARINE & SHIPPING

Around a year and a half ago, the greatest concern of the shipping industry was the new limit on the sulphur content of marine fuels of the International Maritime Organisation (IMO) that entered into force on 1 January 2020. The shipping and the oil refining industries were bracing for what some analysts had described as the single largest disruption event in the history of marine fuels, refining, and oil markets. Little did they know that what was expected to be the biggest disruptor for the shipping and oil industries would be dwarfed by what actually turned out to be the largest disruptive event on the markets and on people’s lives in decades—the COVID-19 pandemic.

THE PROSPECTS OF MARINE & SHIPPING INDUSTRIES AFTER COVID SHOCK

By Tsvetana Paraskova

www.ogv.energy I April 2021

The IMO 2020 sulphur limit cap, aimed at reducing sulphur oxides emissions, entered into force weeks before the coronavirus swept through the world and upended all forecasts. Still, the drive to reduce emissions from the shipping sector did not waver. It even became stronger as the pandemic accelerated the push from all industries to start looking to cut emissions. Leaders in the shipping and fuel supply industries are speeding up efforts to test alternative, less emission-intensive fuels. Meanwhile, tanker owners and operators had a field day at the onset of the pandemic in the spring of 2020. But at the start of 2021, with reduced availability of crude oil for shipping due to the OPEC+ cuts and with still subdued fuel demand in some parts of the world, especially in Europe, the operators and owners of tankers are seeing rates dropping and the prospects of recovery further delayed until the OPEC+ group decides, at some point in the coming months, to put more crude oil on the market to meet what is expected to be a recovery in global oil demand in the second half of this year.

The Difference a Turbulent Year Makes for Tanker Rates Last year in March, when most countries in the world were entering what would be their first (but not last) lockdowns to curb the spread of the pandemic, Saudi Arabia and Russia broke up the OPEC+ pact for a month and Saudi Arabia flooded the market with crude oil. Additionally, the collapse in oil prices and oil demand made storing oil on tankers profitable in the so-called ‘contango plays’. As a result, tanker rates went through the roof, as Saudi Arabia was booking more vessels on the global market to ship its oil to the United States and Asia, while oil traders were looking for tankers for floating storage with the oil futures structure in contango making storing oil for future sales profitable. As 2020 progressed, global oil demand recovered from the lowest point in April, and by the end of the year demand in Asia was strong and nearing pre-pandemic levels. The oil futures curve flipped to backwardation, which removed the incentive for trading firms to hold oil in floating storage, and thus tankers that had been used for months to store oil in 2020 returned to the global vessel fleet for shipping crude and fuels.

MARINE SUBSEA & SHIPPING REVIEW Weak Tanker Market at the Start of 2021 The weaker tanker rates became even weaker at the start of 2021, when Saudi Arabia, the world’s largest oil exporter, said it would cut its production by 1 million barrels per day (bpd) beyond its quota in the OPEC+ cuts in February and March. So in January 2021, an oversupply of vessels and the extra cuts from the Saudis depressed the earnings of the owners and operators of supertankers. Some owners of very large crude carriers (VLCC), capable of carrying up to 2 million barrels of oil, began losing money on the key shipping route from the Gulf to China, shipbrokers and analysts told Bloomberg at the time. The sentiment on the market for tankers became even gloomier in early March Container shipping will likely be the first 2021, when not only OPEC+ left its shipping sector to start to decarbonise, collective cuts basically unchanged for ammonia and LPG tankers are well suited April – with a small exemption of 150,000 to be first movers, while green hydrogen bpd for Russia and Kazakhstan combined could also play a role in introducing zero – but Saudi Arabia also said it would emission marine fuels, according roll over its extra 1 million bpd to the Getting to Zero cut into April, contrary to Coalition. market expectations and to its own commitment In early March 2021, from January that the The European major shipping and additional cut would be Commission should commodity trading only for February and companies, as well as March. seize this opportunity to environmental groups, create new jobs and called on the European The lack of meaningful support sustainable Union to promote the additional oil supply use of green hydrogen from the OPEC+ alliance economic growth and ammonia by ships for April surprised as part of its upcoming not only the oil market. maritime fuel law and the The shipping industry and FuelEU Maritime initiative. shipbrokers were equally surprised, and not in a pleasant way. “Green hydrogen and ammonia are sustainable and can be produced in The lower-than-expected volumes of sufficient quantities to decarbonise the crude oil available for shipping will delay industry,” shipping companies DFDS, a recovery of tanker rates as vessel CMB, Torvald Klaveness, and Viking operators, owners, and shipbrokers are set Cruises, commodities trader Trafigura, to suffer the consequences of the OPEC+ green group Transport & Environment supply management policies for longer (T&E), the Hydrogen Europe association, than expected at the beginning of this year. and maritime classification society Lloyd’s Register, said in a letter to the EU Drive for Lower Emissions from the climate, transport, energy, and industry Shipping Sector commissioners. Shorter-term prospects notwithstanding, the shipping industry and the marine fuel sector are looking at the long-term opportunities and challenges. Key of those is the global drive for cutting emissions in all carbon-intensive industries, including the shipping industry. According to the Getting to Zero Coalition and the Global Maritime Forum, an S-curve based analysis suggests that zero emission fuels need to account for 5% of the international shipping fuel mix by 2030 to enable decarbonisation in line with Paris goals. The ambition of the Getting to Zero Coalition is to have commercially viable zero emission vessels operating along deep sea trade routes by 2030. The coalition, however, has yet to quantify that target, it said in early March 2021.

Globally, 1.4 trillion euro (US$1.67 trillion) in capital investments will be required to produce green hydrogen and ammonia for the shipping industry, the companies and organisations said. The European Commission should seize this opportunity to create new jobs and support sustainable economic growth - in line with the EU Green Deal, according to the groups. “Unlike advanced biofuels, green hydrogen and ammonia can be scaled to meet the energy demand of the global industry. And even the largest ships can be powered by these fuels. It is high time that European Commission changes the focus from ‘quick and dirty’ biofuels to truly sustainable

alternatives,” said Faïg Abbasov, shipping programme director at T&E. A week after this call on the EU, maritime industry leaders said they would explore the feasibility of ammonia as marine fuel in Singapore. A.P. Moller - Maersk A/S, Fleet Management Limited, Keppel Offshore & Marine, Maersk Mc-Kinney Moller Center for Zero Carbon Shipping, Sumitomo Corporation, and Yara International ASA have entered into a Memorandum of Understanding to jointly conduct a feasibility study with the aim to be one of the pioneers in establishing a comprehensive and competitive supply chain for the provision of green ammonia ship-to-ship bunkering at the largest bunkering port in the world, the Port of Singapore. Green ammonia is carbon-free ammonia synthesised from nitrogen and carbon-free hydrogen produced from renewable energy. “Alongside Methanol, at A. P. Moller - Maersk we see green ammonia as an important future fuel for the decarbonisation of our fleet,” said Morten Bo Christiansen, VP and Head of Decarbonisation at A.P. Moller – Maersk.

Globally, 1.4 trillion euro (US$1.67 trillion) in capital investments will be required to produce green hydrogen and ammonia for the shipping industry, the companies and organisations said.

02 22

MARINE & SHIPPING

Stena Drilling – Keeping the marine crews on our moored semi-submersibles ‘Ship Shape’ The Problem When operating a UK Flagged vessel, the Master/OIM must ensure compliance with the vessel’s Safe Manning Document (SMD) as issued by the Maritime and Coastguard Agency (MCA). The SMD details the number of marine qualified crew members required onboard at any one time to ensure that the vessel is adequately crewed for any emergency situation. A challenge for Stena Drilling when operating the UK flagged semi-submersible ‘Stena Spey’ has been formulating a plan to train experienced crew members in the deck department enabling them to achieve STCW II/4 deck rating certification. Despite the Stena Spey being classed as a ‘Class VII’ vessel, we found that our experienced roustabouts and crane operators were unable to achieve this certification because of the nature of the Spey’s work, its mode of operation and the requirements of the training programme which fails to recognise our crew’s sea-service when on a moored unit. Whilst the vessels safe manning certification requirements were always met, this inability to achieve II/4 certification reduced the flexibility in terms of fleet succession planning and also impacted recruitment processes which meant that experienced roustabouts without II/4 certification were unlikely to be considered for roles despite boasting impressive experience on their CV. To achieve II/4 certification, or Navigational Watch Rating (NWR), each candidate must be medically fit to carry out lookout duties at night and complete the basic ancillary training for a seafarer, which includes: •

Personal Survival Techniques.

•

Personal Safety and Social Responsibilities.

•

Elementary First Aid.

•

Fire Prevention and Fire Fighting.

The above is not a problem for offshore oil and gas deck crews working on-board the Stena Spey, who are amongst the most experienced in the North Sea, with relevant STCW and OPITO approved training courses included within our comprehensive training matrix for our crews. In addition, each candidate must complete at least 6 months of sea service aboard one of our vessels. Again, easy enough to achieve compliance, as each member of Stena Drilling’s offshore staff are registered seafarers with the Master/ OIM on-board confirming sea time upon completion of each successful trip. The challenge for our deck crew was in meeting the final requirement for a navigational watch rating; the requirement to provide evidence of steering the ship and contributing to the safe watch on-board. On a moored semi-submersible that is only ever moved under tow by an anchor handling vessel, the challenge to Stena Drilling was formulating a plan to provide evidence of steering a ship to fulfil this final requirement. In essence – how to you drive a ship that is moored?

www.ogv.energy I April 2021

At Stena Drilling, our core values of ‘Care, Innovation & Performance’ are key to day-to-day business processes. A recent success story demonstrating the application of these core values, which has the potential for wider benefits if replicated across the drilling contractor community, has been the company’s proactive approach to achieving STCW certification for our deck crews on-board one of our semi-submersible units.

MARINE & SHIPPING The Solution The innovative solution developed by Stena Drilling’s Marine Department was to conduct this training inhouse and become a certified training establishment. A dedicated team was established to extensively research the regulatory requirements as well as the practicalities of developing a programme that could be implemented to provide this opportunity to the crew of the Stena Spey. After much hard work, in 2017 Stena Drilling were granted accreditation from the MCA to train and certify Navigational Watch Ratings in accordance with the “Seafarers Training, Certification and Watchkeeping (STCW) Convention Regulation AII/4 and UK statutory instruments relating to training of seafarers”. Detailed training procedures, records of training, and certificates were developed in house with guidance from the MCA which then allowed for the implementation of this robust training programme for NWRs. To achieve the NWR certificate Stena Drilling adopted a two-pronged approach to get prospective candidates the required sea time on a suitable vessel. The first was to utilise the other vessels within the company’s fleet (Stena Carron, Stena DrillMAX, Stena Forth and Stena IceMAX), with Stena Spey crew members joining the vessel for inter-country transits in between client programmes. Much in the same way as the Merchant Navy Training Board (MNTB) Training Record Book for Cadets is completed; the individual elements are delivered and verified by the certified deck officers aboard the Drillship, with the final signatory being the Master of the vessel prior to being reviewed ashore by the Training Department and Marine Department. The sole purpose of this experience for the crew members was to gain extensive knowledge of bridge procedures, steering, and night navigational duties expected of a Navigational Watch Rating. Along with broadening the skillset of our crew, this also gave crew members normally used to the day-to-day work of a rig within the North Sea a glimpse of life aboard a drillship. As a result of this, a number of crew have now transitioned into the ‘international’ fleet and continue to develop their skillset and careers within Stena Drilling. A second avenue was to send crew onto contracted AHTS vessels, not scheduled to be on the tow, for rig move operations. To allow this, Stena Drilling had to reach out to the broker (Braemar ACM) and the AHV owner (Viking Supply Ships A/S) to ascertain if they could assist in a temporary transfer of our crew to their vessel to carry out the training (namely the steering certificate and look out duties). Not only did this build the skillset of our crew members who joined the AHV, but also gave them an excellent chance to see how anchor handling operations were conducted from the AHV’s point of view, which as a member of the crew aboard a semi-submersible isn’t always an opportunity they would get a chance to embrace. “Whilst I was aboard the anchor handling vessel to obtain my steering ticket, I gained good experience and a view into anchor handling operations that I had not previously seen. The Captain and First Mate took the time to explain to me the various bridge instruments, bridge commands, and how to steer a ship. This was a very different, but beneficial experience compared to what I had previously gained aboard a Rig.” – Arthur Hough, Roustabout, Stena Drilling.

Conclusion “Care, Innovation and Performance” is more than a tag line – it’s what we do at Stena Drilling, especially when it comes to the training of our personnel. If we look closely at this example above, we can see how all three elements have been encompassed to allow greater opportunities for our staff offshore. Broken down, it can be seen as: •

Care: ensuring all of our personnel are qualified to the highest standard, a standard which as a company, we hold ourselves to.

•

Innovation: not only in developing the training, but reaching out to other organisations to assist in the development and facilitation of training. A gap was identified and we found the solution.

•

Performance: linking the two above items together, ensuring our crews are well trained and certified. Exposure across the fleet and third-party vessels allows Stena Drilling to have some of the highest qualified marine personnel in the North Sea.

Stena Drilling is one of the world's foremost independent drilling contractors, consisting of 4 ultra-deepwater drillships and 3 semi-submersible rigs Find more information at www.stena-drilling.com

MARINE & SHIPPING

LOCKDOWN LOGISTICS:

delivering exceptional customer service

One year ago, almost overnight, air, road and sea travel ground to a halt. What would have previously been unthinkable soon became a frantic struggle for businesses to keep trade flowing worldwide.

o one could ever have been completely prepared for the seismic change in our daily lives as the UK went into its first national lockdown; however, the team at Petrasco – a leading provider of international logistics solutions – has strived to deliver for its clients in the face of unprecedented challenges.

But the world doesn’t stop turning. “With the energy industry designated as an essential service, we had to adapt, and adapt quickly, to the ever-changing global situation brought about by the pandemic,” commented managing director Kevin Buchan. He added: “Due to the nature of our industry, planning and business continuity has long been a feature of every management meeting held in recent years. “Therefore, how we would operate, communicate with clients, function, and continue to provide our range of services throughout the pandemic had already been considered, so ‘Operation Lockdown Logistics’ went into full swing.” With operations in the three major energy hubs of Aberdeen, Dubai and Houston and beyond, Petrasco has a wealth of expertise in serving the global energy sector and is well-placed to advise clients on challenging markets from a logistics perspective. As well as procedures to keep staff and clients safe, Petrasco moved quickly to utilise technology to make remote working as fast and reliable as office working. Regular communication, including promoting staff wellbeing, came to the fore against the backdrop of a constantly evolving information landscape. Every freight agent found themselves in the same boat, with increasing rates due to limited capacity and changes in rates on a daily, and sometimes hourly, basis as airlines grounded flights. To find a way around this, Petrasco looked at other routes that wouldn’t normally be considered as well as leveraging its membership of an energy consortium of carefully selected partners.

www.ogv.energy I April 2021

Kevin Buchan, Managing Director

Kevin said: “We managed to overcome these challenges and continued to deliver freight services around the world thanks to our problem-solving ability and the relationships we’ve built up with industry partners over many years. “In many cases, these relationships have been strengthened, while even in the depths of the crisis we were trusted to find the best deal and best solution possible. “At the same time, it was vital to manage clients’ expectations – providing realistic options and timeframes, without making any guarantees given the state of flux and factors beyond our control.” The experience of its staff came to the fore, adapting to the constant changes and guidance, which allowed solutions to be found through long-standing contacts at shipping lines and airlines. For instance, Petrasco avoided port congestion and reduction of services with full container load (FCL) and less than container load (LCL) operators through alternative methods, such as utilising breakbulk services. In some cases, where key members of staff had been placed on furlough or left their post, Petrasco’s team found themselves liaising with new contacts who had to be guided through the process and practicalities of logistics. With so many projects being delayed, this has led to clients being more reactive – and asking for cargo to be delivered internationally often at short notice. This has created its own challenges with the need to relay the latest service information from the major carriers to clients in real-time. “On the exact day the UK went into lockdown, we challenged Petrasco with an urgent and critical consignment to be delivered to Las Palmas for one of our clients. “Despite the challenges presented by COVID-19, Petrasco expedited the consignment and delivered it ahead of schedule. Most of the shipments we have despatched during lockdown are time sensitive and the level of service, alternative solutions and communication we have received from Petrasco has been excellent.” Operations Manager, subsea fabrication company As confidence returns, more, better-planned projects will come back on stream, and yet, the industry still faces delays with port congestion that would not have existed 18 months ago due to the significant backlog – emphasising the need for contingency plans. Kevin added: “I’m extremely proud of the efforts of our team and how they have all pulled together over what has been the most challenging year in recent memory. It’s our people who find the solutions needed and it’s credit to their abilities that clients haven’t seen a drop-off in the level of service provided. “Because of this, and our willingness to respond when others couldn’t, we have also been fortunate to pick up new business for our range of services, including warehouse distribution. “Now, with light at the end of the tunnel, many of the changes brought to the fore over the past 12 months to help us adapt will remain in place as businesses look to become more resilient and achieve sustainable recovery.”

MARINE & SHIPPING

DID YOU KNOW? Petrasco operates a public customs warehouse, covering 10,000 sq. ft of internal capacity and 5,000 external capacity. The Aberdeen customs warehouse is controlled and managed by former HMRC officer Doug Gardner, who started his career at the city’s airport in 1981 – dealing with imports, exports, and the control of passengers and goods. Gaining valuable experience in international trade and documentation, Doug remained a senior local officer until 2012, when he moved to UK Border Force. Since joining Petrasco in 2017, Doug’s insight, passion and experience across the full spectrum of customs knowledge have proven to be a valuable and unique asset. The company’s customs warehouse offers a host of advantages to current and prospective clients, including as a cashflow saving that can be used to delay duty and VAT; paying only when the goods leave the warehouse and go into free circulation.

“We usually have to mobilise our equipment at very short notice to Asia, the Middle East, Australia, USA, Europe as well as the UK. Petrasco always provides fast, cost-effective solutions and remains on the ball 24/7. We are always given clear communication with the status of our shipments, from departure until it arrives at the destination. Petrasco takes the stress and headache out of all our freight movements worldwide.” Subsea Manager, international subsea company

MIDDLE EAST GATEWAY Like any new market entry, the key to doing business in the UAE is having the right equipment, technology and people on the ground. This can be a capital-intensive process with significant risks involved; however, Petrasco enables companies to enter new territories with minimal capital expenditure, allowing a staged and steady market entry and growth process. Through its Dubai hub, Petrasco supports companies in the Middle East by providing:

If goods are exported from the company's HMRCapproved customs warehouse, or transferred to another customs procedure, no duty and VAT are payable. Storage can be longer term and can accommodate various sizes of products – from helicopter parts to a subsea Christmas tree – while many types of goods can be stored indefinitely. As well as standard site safety and security measures, Petrasco was one of the first UK freight agents to obtain Authorised Economic Operator (AEO) status in recognition of the company passing rigorous assessments by HMRC and meeting on-going assessments.

We managed to overcome the lockdown challenges and continued to deliver freight services around the world.

As a customs warehouse user, you gain access Petrasco’s additional logistics services that can offer complete integrated logistics solutions to keep your supply chains moving.

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International logistics services

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3PL supply base and storage (primary or overflow)

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Access to technical and manpower services

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Introduction to network of support services, such as administrative, legal and commercial

Petrasco has operated in Dubai for 18 years, with its senior leadership team amassing more than 60 years collectively. With its extensive knowledge of the wider Middle East region, Petrasco is well placed to guide new entrants through the process, so that they can establish their business and personnel first without committing to expensive long-term commitments that may not be suitable for future growth.

It has supported numerous UK firms, including from north-east Scotland, to start their business and place equipment on the ground within the Jebel Ali Free Zone; giving clients access to equipment and the ability to mobilise quickly and cost effectively. Petrasco often remains with these clients throughout their journey in the Middle East and adapts as their businesses grow and needs change.

“Petrasco’s Jebel Ali Free Zone supply base is a flexible solution that allows us to consolidate and manage our equipment efficiently. With close proximity to the port of Jebel Ali, we can quickly mobilise our systems to service the Middle East and Asian regions as well as other global locations. “Working with the team at Petrasco Dubai has enabled us to overcome many logistical challenges and meet our customers' demands.” Dubai Warehouse

Head of Middle East & Asia, ROV service provider

Delivering rapid logistics solutions to the energy industry. For further information and to discuss your requirement, visit www.petrasco-energy.com or contact enquiries@petrasco.co.uk

MARINE & SHIPPING

rnlea is a tried and trusted partner for a number of global oil & gas clients, with more than 25 years’ expertise in supply chain and operational management activities, providing software solutions to the energy industry. Arnlea Systems Inc is a subsidiary of Arnlea Systems Ltd, global leader in industrial mobile software for tracking, inspection and maintenance for the oil & gas industry, and signed its first two US contracts with TOTE Services, LLC, an affiliate of TOTE, LLC, in 2020. through its partnership with SourceIEx. This was big news, particularly in the US, because Totes Services was the first marine business to convert some of its vessels to LNG in response to changes in the US Coastguard directions for the use of LNG in respect of reduced carbon emissions. Conversion to LNG by any US vessel triggers the need for hazardous area “Ex” inspections, something the US marine industry has not been used to, until now. To those in the Oil & Gas industry, Ex inspections are par for the course. Inspections of Ex electrical items are a daily occurrence, some companies complete these inspections using pen and paper, Excel spreadsheets, and increasingly, software and cloud-based software. In the US Marine industry however, Ex inspections have not been of relevance until in 2018 the US Coastguard created a series of safety regulations to create HSEQ standards for offshore platforms, units and vessels. For marine companies, they came into effect if a vessel converted from carbonemitting diesel to lower carbon emitting LNG. The challenge of global climate change has meant many global shipping businesses are converting their vessels and in the US TOTE Services has been a pioneer in this endeavour, converting their first vessel in 2017 and has the most environmentally advanced ships in the nation. This has provided an opportunity for Arnlea. The US market is a clear strategic target for Arnlea, and I am planning on relocating there as soon as practical. We formally opened our US office in Houston in 2020 but due to the global pandemic, we’ve not yet physically occupied our new home, something we’re hoping to achieve before the end of 2021. We specialise in the energy industry focusing on providing cloud-based software to deploy asset management systems, which is why we decided to establish a commercial base in Houston, to be in another global energy centre and to support our US partners and resellers. In our core industry, clients deploying Intrinsix are typically experiencing multi-million-pound savings and payback of the system well within a year, whilst improving operational excellence, compliance, asset integrity, and reducing their OPEX.

www.ogv.energy I April 2021

FROM ENERGY TO MARINE:

How Arnlea’s US ambitions developed a brand-new market.

Arnlea’s international Business Development Manager Paul Goonan describes the opportunities they have discovered in the US marine industry, a market they hadn’t planned on developing.

The opportunity with TOTE came about through one of our premier resellers and partners, SourceIEx. An experienced operator for Ex equipment and services for the oil and gas industry, they were aware of the opportunities in the marine industry and recognised that as a tried and trusted partner in Ex and asset management software with a global reputation, Arnlea was in pole position to support forwardthinking marine operators in the US. As soon as it became clear that we were expanding the business Stateside, we began to foster closer ties with specialist equipment, software and service providers, to provide a broader and more attractive proposition to potential clients. This strategy is paying off, as we opened this new market as a direct result of this relationship. This led to Arnlea signing its first US contracts with TOTE Services, who operate the world’s first LNG-powered – Marlin Class – container ships. TOTE is in the process of converting to LNG a second class of vessels, Orcas Class and, as such, is now required by the US Coastguard to conduct regular Ex inspections. The installation dates were in late 2020, supported by SourceIEx, who also supported Arnlea with the first inspections. As Bob Johnson, President, SourceIEx said at the time, “Our relationship with Arnlea is both strategic and timely. The opportunities for cloud- based Ex inspection software in both the energy and maritime industries are immense, due to a shift towards digital transformation and a move to LNG fuels. We welcome Arnlea’s first US contracts with TOTE and see them as just the first of many to come.”

North Star Vessel

TOTE LLC’s family of companies includes leading transportation and logistics companies. TOTE Maritime Alaska, LLC, and TOTE Maritime Puerto Rico, LLC bring unmatched reliability and service to their respective markets. TOTE Services, LLC offers crewing and technical services to meet the needs of commercial, privately owned, and U.S. Government vessels. TOTE was in the process of converting its West Coast vessels from diesel to LNG in a bid to lower their carbon footprint and this brings with it a new responsibility to conduct IEC inspections. This has been the first marine contract for Arnlea anywhere in the world, outside its core market of oil and gas and opened a brand-new market for the business.

Isla Bella Vessel in Service

The IntrinsixEX software has been deployed on a fleet of five different vessels, comprising two vessels and a barge (TOTE Puerto Rico) on the Atlantic Coast and two vessels on the Pacific Coast (TOTE Alaska). IntrinsixEX plays a central role with industry regulations and IEC 60079 standards compliance, ATEX directives, including the US

Arnlea, the global leader in industrial mobile software for tracking, inspection & maintenance for the global Oil & Gas industry. Learn more about Intrinsix at www.arnlea.com

OPTIMISING OPERATIONS

with underwater ROVs Coastguard’s regulations for LNG fuel, as part of the management of hazardous areas and equipment. It can also help to manage headcount and improve safety; and being cloud-based provides a number of strategic advantages for its clients, which has had greater resonance with clients since the Covid-19 pandemic. It deploys on handheld technology to provide visibility, accuracy and control of assets, helping to improve efficiency and reliability and, ultimately, extend the asset’s life and uses auto-ID mobile technology to increase compliance and decrease costs in Ex inspections and maintenance activities. Integrating with SAP and IBM Maximo, improving management reporting and overall operational efficiencies IntrinsixEX also improves inspectors’ efficiency by an average of 150%, compared with pen and paper, boosting productivity, and creating a greater sense of ownership during a campaign. This opportunity is part of a greener solution that US marine businesses, from commercial ship management to the cruise industry are seeking by converting from diesel to LNG fuel transmissions. TOTE is a pioneer in this respect, and to be working with such a progressive organisation so early in our marine business development has been an excellent introduction to the industry. There are future opportunities with other commercial marine operators, as well as in the cruise and leisure industry where consumer brands are now keen to demonstrate their environmental credentials by what they are doing to lower their carbon emissions. Using Intrinsix brings peace of mind, simplicity and because it’s cloud-based, it’s also futureproof and all data is secure. Now that we’re a Microsoft Silver Partner, our formalised cloud-based applications also possess the additional benefit of Microsoft’s security architecture for all our customers who take this next step and move to our cloud-based software option. In the 21st century, the more controllable data you have, the more power you have and as a leader in our field, Arnlea exists to streamline the data analysis process, to enable safety compliance and empowers businesses to make better critical decisions.

We hadn’t anticipated our first contract out of our US offices would be a marine client and yet the synergies with the energy industry are evident. Without the marine industry, the energy industry would also struggle and so this happy accident has given us a new strategic imperative for our US operations, which will help grow our US business. The other takeaway is that operating in new sectors or markets often requires valuable partners with commercial operators who have a much better understanding of the market than you might. New opportunities mean more risk and often greater rewards and a reliable, like-minded partner can make all the difference.

n order to keep a vessel at its top performance, protecting and maintaining the integrity of the hull is extremely important. Hull damage or fouling can not only affect the overall speed and fuel efficiency of a vessel, but can also be harmful to the crew, cargo, and has the potential to negatively impact surrounding marine life. The physical ability of the vessel to cut through the water in an efficient manner is imperative for optimal performance and fuel economy. While necessary, hull inspections can be an incredibly difficult task. Dry docking is expensive and laborious, while dive inspections can pose potential danger to humans in addition to being costly and time consuming. Submersible remotely operated vehicles (ROVs) provide a cost-efficient, portable and user-friendly way to conduct hull inspections safely and quickly. Staying on top of hull inspections and maintenance allows organisations to make the most of their valuable time and budgets. What are ROVs

due to conflicting schedules of availability. With the safety concerns of having divers in the water, there can be delays to ensure that the vessel is in a condition that is stable and safe enough for dive operations. As the DTG3 or REVOLUTION can be operated by one person, they can be deployed significantly faster than divers and allow for schedule flexibility, as well as operational flexibility, as diver health is not a concern. ROVs can be deployed at a moment’s notice for everyday tasks such as block checks during drydocking, hull and running gear inspections, equipment failure investigations, and many more. Light enough to be manually carried from pier to pier or office to pier by one person, Deep Trekker vehicles are easy to transport to vessel locations. Shore power connection is not required for the battery powered vehicles, making deployment quick and straightforward. Information can also be easily organised and shared. Once underwater work is complete, the operator simply downloads the data to their computer to develop the dive report noting hull and equipment condition and pointing to any irregularities. Benefits Optimising budgets is crucial for the successful operation of any shipping operation. With an ROV on hand the frequency that dive teams need to be mobilised, or vessels need to be dry docked, is significantly reduced.

Underwater ROVs are submersible, robotic systems controlled by users topside or onshore.

Teams can proactively manage their fuel efficiency by conducting regular ROV inspections to determine Deep Trekker Revolution ROV optimal cleaning and paint ROVs offer convenient schedules - even the smallest solutions for underwater layer of fouling on vessel hulls in-lieu of drydock (UWILD) can cut down on the vessel's inspections, diagnosis performance. Conducting of damage response regular inspections to and equipment failure evaluate the marine growth inspections, blocking/ will help prioritise when or if pre-drydocking checks, cleaning or painting must be pre-operation/charter conducted. Having extensive vessel surveys, and knowledge of the condition quality assurance, among of their vessels also allows numerous other tasks such organisations to efficiently as retrieving lost items and ensuring port security with manage maintenance schedules to minimise contraband inspections. downtime. Having vessels running at optimal condition through consistent ROV inspection ensures Deep Trekker has two underwater ROV models; overall efficiency and effectiveness to make the most the DTG3 and the REVOLUTION. Deep Trekker out of budgets. ROVs are designed for maximum portability and maneuverability. Their compact size and onboard Utility Crawlers battery power allows the ROVs to access to remote locations. Utility crawlers are designed to work in tough underwater environments; equipped with attachments Intelligent and advanced, the DTG3 is the best in its for pressure washing, vacuuming, thickness testing class. The mini underwater ROV was built to provide and more. operators the ability to quickly deploy and visually inspect within underwater environments. Depth The Deep Trekker DT640 offers various solutions to rated to 200 metres (656 feet) the battery powered unique underwater inspections, with both rubber or vehicles last for up to 8 hours. Carried in a single magnetic wheel options and designed with skid-less, case, this extremely maneuverable underwater ROV zero turning radius. Rare Earth magnets allow the is built to last, and the 4K camera provides excellent utility crawler to move in any direction on ferrous real time video footage, even in low light. material such as vessel hulls. The REVOLUTION is a completely reimagined ROV. Mission ready with enhanced payload capabilities, greater depths and advanced stabilisation systems, the REVOLUTION is a serious vehicle. Depth rated to 305 metres (1000 feet), the REVOLUTION boasts numerous comprehensive sensor integrations. The patent pending revolving head allows operators to rotate the camera, manipulator and sonar all while holding station in the water. Time The use of ROVs allow teams to optimise their time. External vendors can impact overall project timelines

With the DT640 operators can drive along the hull of the vessel as another alternative for underwater inspection and vessel maintenance. Ports and Harbours The condition of ports and harbours also play a serious role in the effectiveness of your vessel. ROVs allow users to explore the area surrounding the vessel to ensure that all underwater segments of a harbour are functioning in a safe and effective manner. Lost equipment or shipments can also be located and identified, allowing users to provide verification to those concerned.

Spectis Robotics is a world-class designer and manufacturer of advanced robotic crawlers and remote-controlled video camera inspection systems. For more information on Deep Trekker’s range of underwater ROVs, please contact Spectis Robotics on 01224-701444 or info@spectisrobotics.com

GREEN ENERGY

CREATING AN ENERGY TRANSFORMATION ECOSYSTEM “Energy Transformation” is now heralded as the great opportunity for the United Kingdom Continental Shelf, (UKCS). But what does “Energy Transformation” mean and how can it positively affect our businesses? The simple truth is that in order to understand the opportunity we have to first understand the drivers.

Maybe for the first time ever, the upstream oil and gas industry is facing an existential threat. The industry can no longer plough its own furrow by dominating the energy markets. Oil and gas operators now have to contend with investors who want to see more transparency in the way profits are secured. They are increasingly applying non-financial factors as part of their analysis to identify material risks and growth opportunities. These non-financial factors are typified by Environmental, Social and Governance goals or ESG’s. For companies this is no longer “business as usual”, now as 21st Century Oil and Gas Operators we have to reinvent our business case.

The offshore energy industry in Western Europe is no longer the sole playground for oil and gas. We now share this space with renewable energy companies. Notably, offshore renewable energy is now on a deflationary cost curve. This has been achieved through a combination of economies of scale and standardisation of design and installation. By contrast offshore oil and gas is on an inflationary cost curve, as the hydrocarbons becomes harder to find and therefore more expensive to fund. “Isolation gives time but not immunity.” Lamine Pearlheart

About the author: John Butler is an accomplished business manager and project management practitioner, with over 20 year’s marine and offshore engineering experience. A Chartered Engineer and a Fellow of the IMarEST he started his career in the merchant navy. Having worked at TechnipFMC, Jacobs Engineering and Wood, John has amassed a wealth of knowledge in engineering design, delivery and installation of offshore projects. John is also an experienced mentor and technology integrator having worked with OGTC TechX program supporting development of new technology companies.

www.ogv.energy I April 2021

So here we are at a cross roads. A datadriven, digitally-enabled society has created a hyper-turbulent world. The rules of the game have not only changed, but continue to change at a rapid pace. The oil and gas industry now has to adapt to a new reality, one where we are now a part of an energy ecosystem; a place where decarbonisation is not only an expectation but a requirement. Remaining isolated by being faithful to hydrocarbons alone, is no longer an option. We now have to diversify into alternative energy, just to remain relevant. It is true that oil and gas will be around for decades to come, after all, energy transformation will be accomplished through the use of hydrocarbons. Nevertheless, oil and gas demand is on a steady, progressive, and chronic decline. Energy transformation is as much about ensuring that we have reliable sources of energy, while we reduce GHG emissions. This is where oil and gas companies can play a vital role. For decades we, in oil and gas, have challenged convention, developing technologies and techniques necessary to meet the global demand for hydrocarbons. These techniques and technologies can now be repurposed in pursuit of alternative energy which is more sustainable and will meet the ever increasing need for energy.

GREEN ENERGY The energy transformation ecosystem needs to be an interconnected structure where oil and gas operators work with renewable energy developers. More importantly companies have to stop seeing themselves under labels of “oil and gas” or “renewables” but as Energy Companies. It is noteworthy that this trend has already started. BP has spent the majority of 2020 laying out their energy transition strategy with the “reimagine” tagline. The Oil and Gas Technology Centre based in the UK has recently announced that going forward they will be called “OGTC” removing the direct link to Oil and Gas while putting more focus on net zero emission ambitions.

In our bid to drive energy transformation we are building up the requirement of new minerals and materials being required. For example for the mass production of battery technology there will be the potential to drill for lithium rich brines.

So what do companies do in an Energy Transformation Ecosystem?

Finally the casing technology developed by drilling contractors could be brought to the fore, by lining new or existing casings with nickel steel carriers making them compatible for transportation of hydrogen.

To answer this question I have taken two examples. These include businesses that have been around nearly as long as the oil and gas industry. They both have technical skillsets developed over decades. During this time they have created wealth and driven innovation. The two sectors identified are:

Similarly instead of drilling for hydrocarbons, what it we used the drilling techniques developed over year to repurpose subsurface locations. Drilling for and washing out salt caverns for the storage of hydrogen. This could potentially be done in tandem with the exploration of gas, where the gas is used for the production of blue hydrogen.

The opportunities are there; it just takes the drilling contractors to think differently about how they perceive the market and make strategic decisions to develop new revenue streams.

Engineering Design Houses

- Drilling Contractors - Engineering Design Houses

So what would energy transformation look like for these businesses? Drilling contractors The future of sustainable energy could well become inextricability linked to Carbon Capture and Storage, (CCS). We are simply not able to “turn off the taps” of oil and gas in the short and medium terms, and as such we have to find a way to minimise the emissions to atmosphere caused by using hydrocarbons. CCS provides this opportunity. The Acorn project in the North Sea is a prime example where emissions from the St Fergus refinery will be captured and sequestered in deep rock formations offshore.

We have already said that oil and gas will remain a part of the energy mix going forward. But we now know that technology already exists to make facilities of the future, “zero emission”. Design houses can create these facilities and associated subsea infrastructure to meet these zero emission targets. But this is not enough, we now have to future proof the design of our facilities for both the production of hydrocarbons in the short term and for the production of alternative energy in the longer term.

The energy transition ecosystem has the potential to meet our energy demands, provide a sustainable source of energy and secure skilled jobs

CCS is also necessary for the production of blue hydrogen. Blue hydrogen production sees methane and water reformed into hydrogen, with associated carbon emissions permanently sequestered through CCS. With the scale up of carbon capture and storage there will be a requirement to drill additional wells for storage of CO2. Subsea control systems, pipeline engineering, installation, commissioning and operation will all be required. This is complimentary to the existing skillset of the oil and gas sector. Similarly, there is now an increased focus on geothermal energy to decarbonise the production of oil and gas. Instead of drilling for hydrocarbons the drill rigs could exploit geothermal hot spots. In other instances, geothermal power plants installed on a jackup platforms, equipped with steam turbines could generate large volumes of electricity from scorching geothermal steam.

Imagine a facility that is 100% emission free, a combination of electrification from fixed or floating wind, battery packs and hydrogen fuel cells providing power to a fully operational platform. A facility that is designed with the future in mind, to be repurposed for future energy needs, when the oil and gas reservoirs have depleted.

This creates the opportunity for design houses to invest in their people and start upskilling and training their staff in hydrogen. All whilst engaging in new R&D programs to drive subsea marine technology in hydrogen production, transportation, compression, storage and transportation.

Engineers could design platforms to be reused, perhaps as a substation for offshore wind or as an offshore electrolysis plant for the production of green hydrogen. Green hydrogen is produced from renewable electricity via an electrolytic process. This will extend the life of the facility, ensure that the capital cost for installation is spread over a longer period and ensure that sustainable energy can still be generated, even after the oil and gas has been exhausted. “The gulf between today’s carbon prices and the actual cost of emissions to our planet is unacceptable.” Angel Gurría, OECD Secretary-General, September 2018

In the UKCS where many platforms are situated, there is a relatively thin earth’s crust; approximately 10 km thick compared to 40-70 km thick on land. This gives the wells their high bottomhole temperatures. Heat from these wells could be employed to generate electricity on board the platform that could in turn be routed to the UK’s national grid via subsea cables. North Sea platforms have the advantage of being surrounded by cold sea water, which is at a much lower temperature than the onshore air cooling towers that are the conventional means of condensing a generating plant’s working fluids after they have passed through the turbines.

We are now on the road to COP26, the world is closely watching the oil and gas industry. There is without doubt, a level of scepticism about the intentions of oil and gas operators to drive energy transition. However it also has to be noted that governments, international agencies, investors and society in general are demanding more. This coupled with the potential rise in the cost of carbon will ensure that sustainable energy is not just a social or scientific choice, but an economically driven decision.

The product which is both renewable and CO2 free electricity can be transferred in subsea cables to customers. Companies are already exploring potential of geothermal energy offshore. With the support and expertise of drilling contractors this form of alternative energy could become a reality.

The energy transition ecosystem has the potential to meet our energy demands, provide a sustainable source of energy and secure skilled jobs. In a mature basin like the UK North Sea this is not a choice, but an imperative!

GREEN ENERGY ZONE WISH TO SPONSOR THIS SECTION?

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GREEN ENERGY

By Rebecca Williams, Head of Policy & Regulation, RenewableUK

RENEWABLE ENERGY

An unstoppable force

The introduction of renewable energy in the power market has already paved the way for unstoppable growth in the coming years. Renewables have become a highly disruptive force, providing low-cost energy that is creating a very competitive option for both energy providers and consumers. In addition, the Climate Change Act 2008 and the net zero target by 2030 have accelerated aspirations – it’s no longer a question of if it will happen, but when. With the UK and countries around the globe looking to meet ambitious net zero targets, renewables are not limited to the power sector and have expanded rapidly into other areas of the economy. For instance, the transport sector is focused on electrification and improvement in battery design, with the infrastructure to support widespread growth of electric vehicles beginning to come online. We are seeing similar aspirations in the heat industry too, with the government searching for an alternative to gas boilers and cooling systems. Renewables have a significant role to play in this electrification, as well as the reduction of carbon emissions during manufacturing. Since 1990, we have witnessed 62% reduction in emissions within the power sector thanks to renewables. In fact, sustainable energy sources supplied more power than fossil fuels for the first time in history at the end of 2019, highlighting the potential of the sector. Even in the oil and gas sector, where we have traditionally only seen pure play utilities and niche developers engage with renewables, many more entities are getting involved. The Crown Estate recently published its Offshore Wind Leasing Round 4, suggesting approved projects could deliver a 21% increase in the offshore wind pipeline, saving the UK as much as 12.5 million tonnes of CO2 emissions a year and employing 60,000 people by 2030. Big players traditionally from the oil and gas sector entered the market very strongly, including BP, demonstrating the desire for businesses in this field to benefit from the opportunities in renewables right now and in the future.

ramp up the fight against climate change has become more evident than ever. Being in the driving seat of an event dedicated to tackling this provides an exciting opportunity for the UK to showcase its achievements to date and work towards the next steps of the transition. For these reasons and others, there is currently a very active discussion about offshore and floating wind energy platforms. These sources cater to the need for sustainable, low-cost energy generation that will be as resilient as possible. Not only does this provide clean and cheap power to nations, but it can also make it easy to secure investment in large-scale projects. There is a strong role for onshore wind to play, bringing cheap and deliverable power. There is a great deal of innovation in the sector at large – for example, Siemens Gamesa have already announced plans to build the first 14MW offshore wind turbine.

Why have such organisations decided to broaden their horizons and move into There will, of course, be some hurdles that renewable energy now? There are likely several potential reasons. Firstly, need to be overcome if we are to realise society has moved on and consumers are demanding change. In the last the full potential of the renewable energy few weeks, the stock market has shown that consumers are not afraid market. For companies looking to start to be more interventionist and to hold companies accountable. There or accelerate their transition, future is also a lot of pressure from shareholders and investors to be more The market disruption business planning can be a challenge. environmentally responsible and maximise on the opportunities that caused by renewable The pace with which technology is renewables are creating. energy platforms progressing and demand is changing as we look to reduce emissions from other Even discounting these factors, the market disruption caused alone is enough to sectors, makes it difficult to predict how by renewable energy platforms alone is enough to drive more drive more companies fast this transition will go, and what the companies into the field. Such fast-paced development means that into the field. sector will look like in a few years’ time. those who don’t innovate, who step back and watch, risk becoming obsolete. Of course, it is not a singular and sudden decision to move There may also be some resistance into the renewables market, but many companies will have been working internally for companies looking to transition towards it for some time and will be choosing to make their move in the to renewables. In particular, businesses need to near future if they haven’t already. Traditional oil and gas companies will be think carefully about where their niche or added value looking to understand the renewable energy sector and transfer skills and expertise to may be found. The key is to make a start. As mentioned, take advantage of the benefits available. the sector is progressing quickly and to not take action soon is to risk getting out-paced by market development. The UK is in a very strong position within the global renewables market. In offshore wind, the UK is world-leading – we have the biggest market for related technology and more For renewable energy to really thrive and meet the targets capacity installed than any other country. As such, we have already faced and worked set out within the UK and globally, we will need the skills through the challenges, learning key lessons in achieving cost reduction to deliver volume and expertise of all industries. The energy transition space at low prices. The UK has, therefore, created demand for its skills and experience, and a offers massive potential for those with a background in strong opportunity for the export of expertise and goods. Many nations will want to utilise oil and gas, who will be integral to driving future change our workforce and products and services in order to successfully replicate our systems for – there are many synergies to draw on and opportunities even faster transitions and development. Some less economically developed countries may to maximise on for all. By working together to advance even be able to leapfrog straight to renewable energy sources, without following the UK’s the renewable energy market, we can not only achieve net journey from coal to gas to renewable. zero, but also strengthen the economy along the way. With expansion and development of renewables, we can deliver The UK’s position could be further strengthened as the host nation for the UN’s Climate sustainable energy while supporting tens of thousands Change Conference (COP26), which is being held in Glasgow this November. Awareness over of jobs and saving the UK tens of billions of pounds. On a the climate crisis has come to the fore in recent times, with extreme weather hitting many global scale, the opportunities are truly mind-blowing. areas of the globe from last year’s wildfires to this year’s ice and snow. The need for us all to

www.ogvenergy.co.uk www.ogv.energy I April January-February 2021 2020

For more information about RenewableUK, upcoming events and other opportunities, please visit https://www.renewableuk.com

SINGLE POINT OF CONTACT

Namaka Subsea is an established subsea consultancy firm and global subject ma�er expert specialising in Subsea Opera�ons including Diving, ROV and Crane assurance. They offer innova�ve solu�ons to ensure client requirements and expecta�ons are met anywhere in the world. In partnership with Seacro� Marine Consultants, they can provide a high standard of comprehensive and cost-effec�ve marine consultancy services to marine, shipping, offshore Oil & Gas and renewables companies globally. Ac�ve opera�onal and technical support is provided to ship owners and operators, offshore Oil & Gas operators, renewable operators, charterers, crews and a host of other marine related companies. The partnership was created to give supply chains and project coordinators a single point of contact for various aspects of equipment assurance, covering the complete vessel. ROV, Dive System, DP, Marine, Li�ing & Rigging Assurance and Crane Assurance are all offered as part of a ‘Complete Vessel Assurance’.

Diving Assurance ROV Assurance Crane Assurance DP Assurance Marine Assurance Subsea Operations Support & Consultancy Marine Operations Support & Consultancy Project Speciﬁc Equipment Assurance Equipment Mobilisation & Demobilisation Marine Training Subsea Training

SUBSEA

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INNOVATION & TECHNOLOGY

Ocean Infinity Ocean Infinity is a pioneer of large scale marine robotic operations. Developing the world’s largest fleet of uncrewed vessels, the company is transforming the maritime industry. Founded in 2016, Ocean infinity have supported offshore operations such as; seabed surveys, inspections and searches by using the latest marine robotic technology. In February 2020, Ocean Infinity announced the launch of its own fleet of uncrewed vessels, the Armada fleet. Exceptionally fuel-efficient and onshore-controlled, these vessels will offer sustainable services to all corners of the maritime industry. Equipped with survey sensors and work-class ROVs, the Armada fleet will serve the offshore energy industry supporting inspection, repair and maintenance and site survey work.

Company Details Website: www.oceanInfinity.com Email: Info@oceanInfinity.com Tel: +44 (0) 20 38840900 Address: 6 Grosvenor St W1K 4PZ, Mayfair London UK

Technology Development stage: In build Launch date: 2021

INNOVATION &

TECHNOLOGY

IN ENERGY ANNUAL

202 1 www.ogv.energy I April 2021

THE WORLD’S LARGEST UNCREWED FLEET Launched in 2016, Ocean Infinity employs more than 120 staff across the United Kingdom and United States. Since inception, Ocean Infinity has been involved in some of the most advanced uncrewed and robotic fleet operations in the world. The company has completed operations including advanced asset inspection, deep ocean survey, and complex search and salvage, all based on the simultaneous operation of a large number of world-leading robotic assets.

With the launch of its new Armada fleet, Ocean Infinity will become the owner and operator of the world’s largest uncrewed fleet. This world first will challenge the status quo use of legacy conventional technologies. Ocean Infinity’s current fleet of equipment comprise 14 AUVs, 8 USVs and 6 ROVs – more than any other maritime service provider in the world. Ocean Infinity currently operates the Island Pride, a multi-purpose service vessel, and will continue to do so until the Armada fleet is fully operational.

INNOVATION & TECHNOLOGY

With the simultaneous operation of multiple offshore vehicles including its ROVs, AUVs and USVs, Ocean Infinity is capable of the acquisition, processing and presentation of the most sustainable survey information available anywhere on the planet.

Uncrewed Fleet The creation of the Armada fleet marks a shift from traditional ways of working to a new, unmanned way of working at sea. This technology will truly transform the way that the global maritime community operates. The Armada fleet is a fleet of custom-designed robotic ships wholly operated via dedicated and redundant satellite communication to enable true over the horizon capability on a global scale. All command and control communication will take place in real time from remote operations centres based in the UK, USA and Asia. The vessels in the Armada fleet range from 21m to 78m in length and are equipped with some of the highest specification sensors and equipment available. Build of the Armada fleet is underway.

Carbon Neutral Whilst the smaller Armada vessels will operate without crews onboard, the larger vessels will initially utilise a

skeleton crew. In due course the vessels will be capable of working with no personnel offshore whilst also consuming solely renewable fuel such as ammonia. With the combination of exceptional fuel-efficiency, hybrid technology, little or no crew and carbon offsetting, the Armada fleet is the key to a carbon neutral feature for the maritime industry. Capable of operating at such scale across such a plethora of marine applications gives this fleet the ability to transform the way work is carried out at sea.

Inspection, Repair & Maintenance Along with seabed survey, inspection repair and maintenance (IRM) work will be one of the primary applications offered in the offshore energy space. Services will include; pipeline, platform, subsea structures and seabed inspections providing seamless and diverless operations in water-depths of up to 6000m. Ocean Infinity support operations at the various stages of the asset lifecycle from the concept and feasibility stage through to decommissioning, as well as operating in offshore windfarms/renewables.

VIEW THE FULL TECH ANNUAL MAGAZINE ONLINE AT

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INNOVATION ZONE SPONSORED BY

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PEOPLE IN ENERGY SPONSORED BY

PEOPLE IN ENERGY

Prodrill Energy Resource Solutions – people at the heart of the energy industry. With over three decades of experience in sourcing the best talent in the upstream market, Prodrill are driven by people, passion and potential. Experts in human capital; Prodrill have a wealth of experience in providing tailored contractor management and staffing solutions for the global upstream & E&P industry.

The pandemic has had a significant impact on many of our projects, significantly the challenges with providing support for installation and commissioning, which we are still managing to do either remotely or navigating the changing quarantine rules. For the most part however, the transition to the entire company working from home went well, given the short space of time in which it happened. I was involved with supporting the team with IT and software issues. The use of Microsoft Teams has enabled direct communications and meetings to continue and, whilst it is no replacement for face-to-face client and colleague interactions, it has been a very useful communication tool. One benefit of the new remote way of working is the expansion of the talent pool available to companies for new hires.

What has been the highlight of your career so far?

Senior Design Engineer at MAATS Tech Ltd James Hellard

The travel and immersive opportunities I have had right from the start of my career at MAATS have been excellent and were eye opening as a recent graduate. I have continued to be involved with the manufacturing processes and commissioning of machinery which has provided invaluable experience and understanding of the equipment and its environment. This in turn improves my ability to design equipment to suit our manufacturing processes and end users.

What ambitions have you still got to fulfil professionally in your career? The first large piece of equipment for which I was appointed lead designer was the loading arms on the Nexans Aurora CLV. I designed these several years ago now, but they are currently being installed on the vessel and I am eager to see them finished and operating in their prominent position on the vessel.

If you were inviting guests to a dinner party, which 4 people that you have worked with previously would you invite and why? How did you get into the Energy sector and how long have you been working in it?

I endeavour to get on well with everyone I work with. Right now, a dinner party would be breaking social distancing rules!

Who has been the most influential person in your life professionally? After graduating from university, I held a few short-term contract roles in different sectors while applying for graduate Paul Turnock (known as PT), the head of design at Brunel University while I was there, roles. One of my temporary contracts was a maternity cover was a very charismatic lecturer and really inspired my passion for design as a student. admin role for MAATS Tech. When I left that role for a CAD He was one of the key reasons I chose that course and he challenged us right through designer contract for a ventilation company, John Holt, every year of it! That passion for design has become a career. founder and MD (at the time) of MAATS Tech, had reviewed my CV and said that there could be a job for me in the Engineering Office. After Over the next 10 years, what do you think will be the key my contract with the ventilation company challenges in the energy sector in the UK? ended, I had moved to the same area The pandemic has as the Engineering office so got back I think two of the major challenges facing the energy sector, as had a significant in touch with John who set up an with most industries, will be the aftermath of COVID and Brexit. interview. I have now been a Design impact on many of our Both have already had a major impact on international travel, Engineer at MAATS Tech for 7.5 years. projects, significantly manufacture and production and I think will continue to do so What does your job involve on an average day?

the challenges with providing support for installation and commissioning

Generating and developing designs from concept through to production, predominantly using 3D CAD in the form of Autodesk Inventor. Supporting the wider team with any 3D CAD challenges as this has become my forte. Interfacing with clients and suppliers through design reviews and progress meetings.

How have you coped personally and as a company with the pandemic? Personally, I have really struggled at times – travel and social interaction is a large part of my life, both in and outside of work.

www.ogv.energy I April 2021

for some time.

Specific to the energy sector and linked to a project I have worked on recently; I think the challenges of ever-expanding wind farm projects pushing into deeper waters with larger turbines will be pivotal.

Given the experience you have now, what advice would you have given yourself when you were just starting out in the Energy sector? As an Industrial Design graduate starting out in a heavy engineering company, I remember being concerned that I was out of place and didn’t have the relevant knowledge and experience – which, looking back, is how any graduate must feel when starting out. So, the advice I would give my younger self is that my skill set was entirely applicable to the job and that the industry specific knowledge would come with time and experience.

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CONTRACT AWARDS

Maersk Drilling secures nine-month contract to reactivate Maersk Reacher in Norway Maersk Drilling has been awarded a contract with Aker BP for the ultraharsh environment jack-up rig Maersk Reacher to assist with well intervention, stimulation and accommodation at the Valhall field offshore Norway. The contract is expected to commence in July 2021 and has a firm duration of 270 days. The firm contract value is approximately USD 33.4m. The contract contains options to add up to 90 days of additional intervention work at the Valhall field. Maersk Reacher is contracted under the terms of the frame agreement that Maersk Drilling and Aker BP entered into in 2017. Maersk Reacher will be reactivated with reduced drilling equipment and a specific focus on delivering the most efficient well intervention and stimulation set-up including a reduced crew level compared to standard drilling mode. “We’re delighted to get this contract which will see Maersk Reacher return to Valhall where it was last in service as an accommodation rig. This new contract to assist with well intervention, stimulation and accommodation will not utilise the full drilling capabilities of the rig, but we’re confident that we can build on our experience with the Aker BP Jack-up Alliance and work to deliver increased efficiency also in this context,” says COO Morten Kelstrup of Maersk Drilling. “This is a strong example of how our supplier ecosystem enables crossalliances collaboration. We will play to the strengths of the Intervention & Stimulation Alliance and the Jackup Alliance to jointly bring well interventions’ efficiency to the next level,” says Tommy Sigmundstad, SVP Drilling & Wells in Aker BP. Maersk Reacher is a 350ft, Gustoengineered MSC CJ50 high-efficiency jack-up rig which was delivered in 2009. It is currently warm-stacked in Frederikshavn, Denmark after ending its previous contract offshore Norway in April 2020.

www.ogv.energy I February April 20212021

CONTRACT AWARDS

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CONTRACT AWARDS North Star to Deliver SOV Trio for Dogger Bank Wind Farm in $375M Deal Welcoming the news of the contract award, Scottish Government Economy Secretary Fiona Hyslop said: “This is excellent news for the Aberdeen based North Star Renewables who are relatively new to the offshore wind sector but have a wealth of experience operating in the North Sea’s oil and gas sector. "This contract is a welcome example of our domestic supply chain benefitting from the operation and maintenance of an offshore wind project off our coastline, bringing jobs and employment opportunities to communities in Scotland." First renewables contract

Aberdeen-based offshore vessel owner North Star Renewables has won contracts worth around £270 million (~$375 million), to deliver three service operation vessels (SOVs) to be used on what will be the world’s largest offshore wind farm, the 3.6GW Dogger Bank Wind Farm in the UK North Sea. North Star said its contract award followed a highly-competitive tender process, in which it had beat off strong international competition to secure the deal to design and deliver the threevessel service operation vessels. The giant Dogger Bank Wind Farm is being built in the North Sea by joint venture partners SSE Renewables, Equinor and Eni.

North Star will deliver the SOVs to Dogger Bank Wind Farm operator Equinor from Summer 2023 and will be chartered to Dogger Bank by North Star for a ten-year period, with an option for three one-year extensions. "North Star will create 130 new full-time UKbased jobs in crewing and shore-based roles for the lifetime of the contract. Recruitment for the roles will start 12 months ahead of vessel delivery to Dogger Bank’s planned operations base in Port of Tyne. The new positions will be based across Scotland and the North East of England and will grow North Star’s existing 1,400 strong workforce, 950 of which are in the UK and 350 of which are in Scotland," North Star said.

The contract award is a renewables-first for North Star and represents a transformational step forward for company in its energy transition ambitions to become a major player in the global offshore wind sector, North Star said. North Star chief executive, Matthew Gordon, said: “We are pleased and proud to establish a new relationship with Equinor and are looking forward to working collaboratively with them and their partners, SSE Renewables and Eni. We have been working with our existing energy clients in the North Sea for over 40 years, with an outstanding reputation for delivering and operating offshore emergency support vessels safely.

Dales Marine Services and T12 Consultancy collaborate on design and build of a new Linkspan Bridge to support export shipping of Roundwood timber In collaboration with T12 Consultancy, engineering and technology specialists, Dales Marine Services is delighted to announce that they have secured a new contract for the design and fabrication of a bespoke linkspan bridge for innovative Port Handling company JST Floating Piers Ltd. Andrew Malcolm, BD Manager, Dales Marine Services, said: "This is a fantastic order for the group. The new bridge is to be built in-house at both our Greenock and Aberdeen facilities. It will showcase the company’s outstanding fabrication skills." JST have commissioned the new bridge as part of a floating pier which will be transported by sea to its final location in north-west Scotland. The new floating pier will result in the modal shift of a large volume of logs from road to a sea-based transport system taking timber trucks off a fragile road network. The bridge will let JST efficiently transport the harvested timber from the shoreline out onto the floating pier before final loading into coastal ships. T12 Consultancy will provide the engineering design services for the new linkspan bridge. Graham Melroy, partner at T12 Consultancy, said: "The success of securing this contract is a

www.ogv.energy I April 2021

great example of T12's engineering-on-demand services. We will be working closely with Dales Marine Services on the design and project management of this new bridge." Dales Marine has been delivering fabrication services since its establishment in 1996. The company's experience and skilled technicians are ideally suited for the construction of the new linkspan bridge. Dales Marine Services will execute the fabrication at its Greenock fabrication facilities. The linkspan bridge will be

40 metres in length and weigh 120-tonnes. "We are delighted to be able to announce this new project for both the Dales Marine Services and T12 Consultancy. It is a landmark project for our business and one in which we are proud to be involved. Our experienced and skilled engineers and technicians will each play a vital role in the build process” said Michael Milne, Director at Dales Marine Services. Continuing “and one which I know the team is looking forward to starting shortly."

CONTRACT AWARDS

Awarding three contracts for Heimdal and Veslefrikk decommissioning Equinor has chosen Heerema Marine Contractors Nederland SE for removal, dismantling and recycling of the topsides and jackets of the Heimdal riser platform, Heimdal main platform and Veslefrikk A platform in the North Sea. The three contracts have been awarded on behalf of Gassco as operator of the Heimdal riser platform and on behalf of the partners of the Heimdal and Veslefrikk licences. The Veslefrikk partners plan to shut down the field permanently in the spring of 2022. Well plugging started earlier this year. Equinor and Gassco, who are operators of the two platforms on the Heimdal field, have over time studied the best possible use of the installations and the area before deciding a shutdown. A decommissioning plan has been submitted to the authorities. The time for shutdown and start of removal is to be decided by the Heimdal partners during the summer of 2021. In addition to the platforms, the contracts will also include removal, dismantling and

recycling of the gangway connecting the two Heimdal platforms, as well as a subsea pre-drill template connected to Veslefrikk A.

performed on Stord over a period of 2-3 years. This work is expected to employ around 100 people at peak.

Heerema has sent a letter of intent to Aker Solutions AS for dismantling and recycling of the platforms at their decommissioning facilities on Stord after they have been brought to shore. All onshore activities will be

“Decommissioning operations on the Norwegian continental shelf will create important activity for the supplier industry,” says Camilla Salthe, senior vice president of Field Life Extension (FLX) in Equinor.

Petrofac Bags 2 Deals Worth $300MM Petrofac revealed that it has secured two contracts, worth a total of around $300 million, through Petroleum Development Oman (PDO). The first contract is a direct EPC deal for PDO’s Marmul Main Production Station gas compression project. The scope of work for the 30-month, lump-sum, turnkey contract includes engineering, procurement, construction, commissioning, start-up and initial operational support.

ODL - Odfjell Platform Drilling and Maintenance Contract Award TAQA in the UK has awarded Odfjell Drilling (UK) Limited (“Odfjell Drilling”) a five-year contract for the provision of Platform Drilling & Maintenance Services on its North Sea installations including North Cormorant, Harding, Tern Alpha, Brae Alpha and East Brae. Odfjell Drilling is the incumbent Platform Drilling & Maintenance Services contractor for three of these installations under a contract awarded in 2017 and this new agreement will replace the existing contract, with the addition of Brae Alpha and East Brae. The new contract will be effective from June 15th 2021. “Odfjell Drilling is committed to delivering safe and quality operations, and we look forward to continuing to work together with TAQA in the years to come”, says Odfjell Drilling’s EVP Elisabeth Haram.

The second is a project delivery contract with Petrofac’s partner and main PDO contract holder Arabian Industries Projects LLC, for selected PDO concession areas in the North of Oman. The scope of this seven year deal includes the provision of reimbursable engineering services, integrated project support and management services. “Petrofac has a significant track record in Oman and PDO are a longstanding client,” Elie Lahoud, Petrofac’s chief operating officer for engineering and construction, said in a company statement.

OGV Energy - Issue 43 - April 2021 - Marine & Shipping

Articles inside

US Energy Overview

Stena Drilling – Keeping the marine crews on our moored semi-submersibles ‘Ship Shape’

Europe Energy Review

UK North Sea Energy Review

Cover Feature - Seall

Community Partner: Aberdeen FC

Legal and Finance

Company News

Contract Awards

INNOVATION & TECH ZONE

People in Energy

Creating an energy transformation ecosystem

Petrasco: Lockdown Logistics

Australia

Middle East

Arnlea: From Energy to Marine: how Arnlea’s US ambitions developed a brand-new market

Spectis Robotics: Optimising Operations with underwater ROVs

MARINE & SHIPPING

Renewable UK: Renewable energy - An unstoppable force