OGV Energy - Issue 46 - July 2021- People & Diversity

JULAUGUST 2021 - ISSUE 2020 46

UK’s No. ENERGY SECTOR

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PUBLICATION

THE PEOPLE & DIVERSITY ISSUE

TOGETHER WE ARE STRONGER This is a place you can belong, whoever you are and whatever your background, beliefs and more.

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CONTENTS

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COVER PARTNERS 04 - Spirit Energy / Ethos Energy / Atkins / PD&MS

GLOBAL ENERGY NEWS 11 - UK North Sea

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14 - Europe

HACK ALERT!

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16 - US 18 - Middle East

WORLD PROJECTS MAP

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20 - EIC - World's latest project updates

PEOPLE & DIVERSITY ZONE 22 - Diversity & Inclusion in the Energy Sector 24 - Namaka Subsea: Investment in people should be an organisations priority 25 - AFBE UK: The price of Allyship 26 - Norwell Edge: Creating equal opportunities through digital learning

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27 - Xodus: Creating a more inclusive company 28 - OGUK: Building a Baseline: Diversity & Inclusion

INNOVATION & TECH ZONE 29 - EDR Medeso: Elevating engineering from concept and prototype to digital twin 30 - MODS: Connecting to your digital future

GREEN ENERGY 40

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32 - Renewable UK: An innovative roadmap for decarbonisation of offshore wind

EVERY MONTH 34 - Contract Awards 38 - On the Move 40 - Decommissioning 42 - Stats and Analytics 44 - People in Energy: Mavis Anagboso, Director, TOJU Consulting 45 - Community Partner: Aberdeen FC 46 - Legal and Finance

47 - Events

KENNY DOOLEY MAIN EDITOR Welcome to the July issue of OGV Energy at a time when the oil price has surpassed many people's expectations hitting an eighteen-month high and we are starting to hear murmurs of $100 oil again, something many, including myself, thought was a thing of the past. On the events side, we have also heard recently that Offshore Europe has now been postponed until the 1st February 2022 and with that, it’s all eyes on ADIPEC in November and at this point I am very hopeful that we will get over to Abu Dhabi and enjoy a great week of networking and get to participate in our first industry event for 21 months.

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In this month’s issue we also hear from MODS, Xodus, Norwell Edge, OGUK, OGA and AFBE-UK who will be sharing their perspectives on D&I. The rest of this month’s magazine as always provides you with a review of the Energy sector in the North Sea, Europe, the Middle East, the US along with industry analysis and project updates from the EIC, Renewables UK and our newest partner Westwood Global.

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Our theme this month is "People and Diversity" and we are delighted to feature Spirit Energy, Ethos Energy, PD&MS and Atkins as joint cover partners, all standing shoulder to shoulder to fly the flag high to embrace inclusivity in their workplaces and champion the virtues of a diversity. We look forward to hearing more from these companies in our online panel session on July 22nd, which is being facilitated in partnership with AXIS Network.

Thanks again to our readers and partners for all their support and we look forward to a positive back end to 2021. @OGVENERGY

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COVER FEATURES of internships and graduate places during the pandemic and in 2021 we partnered with freelance internship provider, Udrafter, to offer microinternships, providing year-round opportunities for young people to gain valuable work experience.

In order to take steps to become more ethnically diverse, we ring-fenced an engineering internship for Black, Asian and minority ethnic candidates, working with our partner the Association for BME Engineers to recruit from their members.

INCLUSIVE SPIRIT Spirit Energy are creating an inclusive environment where people of all backgrounds feel welcome by building a balanced, diverse business, providing equal opportunity for everyone, representing the communities we work in, and delivering better business results.

During Covid-19 everyone’s wellbeing has been under pressure and it’s been diverse employees – women, the LGBTQ+ community, ethnic minorities, the young and old – who have faced some of the toughest challenges in the workplace and balancing that with their home lives. This has highlighted the importance of viewing inclusion through the lens of intersectionality to better support all of our people.

We are focusing on improving our gender balance and our 2020 gender pay gap report demonstrated continued improvements. We have invested in resources which support the financial, physical and mental wellbeing of our people. Our D&I employee resource groups have also provided support by facilitating discussions on topics such as “Black Lives Matter”, “Neurodiversity” and the barriers to equality faced by women in our industry. We are shining a light on a range

We introduced a transparent promotion process, with clearly defined career ladders making it easier for people to develop and achieve their goals and aspirations. Our employee surveys suggested that the different age groups we have in Spirit have different needs, so we are pleased to commence a partnership with Age Scotland on an age inclusion project, enabling us to better support people of all ages.

of inclusion-related subjects through regular podcasts where we discuss topics like LGBTQ+ experiences in our industry. Our D&I book club is also popular and our “Developing Professionals” network provided us with online social events during the lockdowns.

In 2020, Spirit Energy improved its “Disability Confident” status, moving from Level 1 to Level 2. We relaunched our LGBTQ+ Vibe network to include “Straight allies”, and continue to support the LGBTQ+ network, InterEnergy. We also recognised that young people have been impacted by the lack

resultantly they share similar blind spots. It is in these blind spots that we believe the true innovation resides. Creating a wider net in the organisational sense requires heterogeneous groups overlapping their diverse experiences to eliminate blind spots and collectively “see” what cannot be seen alone.

DIVERSITY AND INCLUSION We live in a volatile, uncertain, complex and ambiguous world. At a societal level, we face one of our most significant challenges as a civilisation as we seek to reshape our global energy mix to achieve a more sustainable future. The range of possible issues and opportunities we face in this environment requires access to a deep collective mind with a diverse perspective.

Just like catching fish in the sea, having a wider net increases the possibilities of success. Homogenous groups tend to see problems the same way. They have very similar interpretations of reality, and

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The confluence of differing ethnic heritage, gender identities, races, sexual orientations, ages, physical characteristics, and mental characteristics, underpinned by personal and professional history, creates a far more powerful recipe for ground-breaking solutions than homogenous, non-diverse groups.

Socially responsible organisations seek to establish deliberate systems and processes to encourage diversity in the workplace. At a human level, it’s the right thing to do, and at a business level creating psychologically safe spaces leads to the best innovations and reduces any risky blind spots. It is therefore critical for sustainable success organisationally and societally.

Finally, in 2022 we plan to produce our first ethnicity pay gap report – our D&I network groups are working to help us improve the quality of personal data sets in our HR system so that we can produce a quality report, allowing us to better serve the needs of all ethnicities.

The pandemic has been a challenge for us all, but one big positive has been that it has helped us to highlight that a continued focus on creating an inclusive environment is the right thing. By supporting employees of all backgrounds we create happier, higher performing teams that focus on ensuring the safety of our operations and the wellbeing of our people, whilst delivering on our strategy and corporate targets.

We hope that the future of humanity brings organically occurring diverse and inclusive cultures across all areas of society. Society, though, simply isn’t there yet. It is therefore on organisations such as ours to play our part as agents for change. We have created a culture of diversity and inclusion through the establishment of systems and processes for deliberate change, supported by the fostering of an inclusive culture. By establishing our internal Diversity and Inclusion Taskforce and participating and sharing our voice in broader external forums, we aim to be a continued part of the solution for a more inclusive future.

This historical and ongoing commitment to diversity and inclusion has allowed us to create a varied and broad workforce that has delivered numerous innovations that create value for our customers. Never in the history of our industry have we needed innovative solutions on such a massive scale. We need to work together to help each other see what cannot be seen alone. Most importantly, however, within the PD&MS family, we believe in creating a culture where everyone should be encouraged to be Proud to be You. It's what makes us Proud to be PD&MS.

COVER FEATURES

POWERING OUR WAY TOWARDS AN INCLUSIVE CULTURE

Born to Turkish immigrant parents in Germany, I learned about inclusion, exclusion and cultural confusion early on in life. This is where my passion for inclusion and diversity (I&D) started. In many ways I have been fortunate to enjoy a varied and successful career, but it was not always an easy path. Entering a male-dominated industry 24 years ago, I started my career in an admin role and worked my way up by sneaking onto the turbine deck to learn the technology in real-time.

I convinced local leadership to give me a chance as a field engineer, this made me the only female field engineer in the company at the time! I am pleased to say that this is no longer the case but with women accounting for only 26% (Boston Consulting Group) of jobs in the energy sector there is still much work to be done.

A HOLISTIC APPROACH TO INCLUSION AT ATKINS As winner of OGUK’s first ever Diversity & Inclusion Award in 2017, Atkins has been on their inclusion journey for some time now. The group has been part of a sustained and successful campaign at Atkins to measure, analyse, track and plan progression towards a more diverse workforce, demonstrated by clear year-on-year improvements in their graduate intake diversity, and progression at each grade step thereafter.

A driving force behind these efforts has been Karen Blanc, Atkins’ UK Operations Director. Karen is also chair of Aberdeen’s cross-industry gender balance group, AXIS Network, and supported the establishment of OGUK’s Diversity and Inclusion Task Force. Since taking on the role of Operations Director as the pandemic hit last year, Karen has been leading a campaign within her business

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There are many reasons a company needs to take I&D seriously, reports have drawn a direct correlation between having a balance of voices in organisations and improved creativity and innovation; happier employees; a better understanding of our customers; and more talent to choose from. This has a significant impact on the bottom line with McKinsey reporting companies with more diverse leadership attain 73% more revenue in innovation.

Selma Kivran, EVP West Hemisphere and I&D Champion

In the more than two decades I’ve been in this industry, awareness of I&D has grown exponentially. Companies now have a strong desire to bring in more diversity but the challenge remains the same; it’s not enough to just talk about it, we must do. It takes buy-in, and tremendous effort to increase awareness and implement programmes that actively drive progress.

One way in which I’ve pledged myself to this is through coaching and mentoring of early career talent and women in energy. I have led employee networks, started and run coaching programs to retain existing female talent whilst creating an environment that welcomed new talent. Everyone has the ability and responsibility to play a role.

section to identify and remove hidden bias in Atkins people process, and to embed inclusion into everyday business practices.

Karen says, “As a young woman growing up through our business, I was aware of the ways in which our system wasn’t perfect and could be considered to rely on self-confidence and selfpromotion to get ahead. It’s not easy to call out the system which you yourself have benefitted from, but while it’s too early to measure any resulting progress, feedback from within suggests that the changes we’ve implemented have helped to make our promotion process more transparent, fairer, and more inclusive.

Ultimately, I hope that these changes will allow a more diverse workforce to thrive, giving us the best chance to be part of teams that we really enjoy working in.”

Some of the changes that the business has introduced include openly advertising all internal roles and opportunities, overhauling how projects are resourced, clarifying grade requirements, explaining the promotion process, shifting from a recommendation-

At EthosEnergy, driving I&D has been fun. We are aligned, nimble and fast which allowed us to recently implement a robust I&D programme linking to our business strategy. This included launching our I&D Council and kicking off our Women of Ethos employee network. I&D forms part of all our company updates, driving awareness and using it as a lens through which to view our business. For example, we are training all employees on unconscious bias and implementing policies that actively increase diversity in our employee base through diverse interview slates, internal promotions and assigning mentors.

When considering I&D, my advice would be make it part of the culture and inextricably linked to strategy. It starts with simple things like looking around the meeting room to gauge diversity and ensuring everyone has the opportunity to use their voice – do our teammates feel like they belong.

Having driven and seen it first hand, making I&D part of everything we do, every day, is the ultimate success.

based process to quarterly all-staff promotion reviews, mandating gender diverse interview and promotion panels, and introducing mid-grade career presentations to support developing staff with building their network and peer set.

The group has also required that all staff set an inclusion objective in their annual performance reviews, and added a D&I behaviour requirement at every grade. Every member of the leadership team has a reverse mentor, and a responsibility to embed inclusion into their daily business. Of note is the fact that the group have continued to deliver these changes over the backdrop of the past year, when others may have deprioritised ED&I efforts due to the pandemic, and challenging low oil prices.

As Karen tells us, “Diversity & Inclusion can’t be an afterthought. Inclusion is simply good leadership, and it’s in how we do everything – how we plan meetings, how we build project teams, how we match people to high profile opportunities, how we communicate with each other, and how we live and breathe our truly flexible working culture. Living our values on this is essential if we are going to meet our goal of playing a starring role in delivering the energy transition – it needs the best people and true diversity of experience and approach.”

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Forward-thinking businesses join forces for growth A dynamic Aberdeen-based marketing agency has joined forces With an exciting new player in the sales market to augment its offering to a growing client base.

Prospect 13 signed a co-operation agreement with newcomer Cornerstone Consulting to enhance its in-house capabilities by pooling the business acumen and synergy of entrepreneurs Cerri McDonald and Sally Cassidy building on their personal relationship.

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After bucking the trend with 55% growth in the last 12-months despite lockdown, Prospect 13 is

Pipeline specialist STATS Group bolster Qatar base

STC INSISO announce record first quarter following merger Aberdeen-based STC INSISO has reported a record revenue of £950k for the first quarter since STC Global and INSISO merged earlier this year, putting them on course to achieve an annual turnover exceeding £2.5 million. The business performance improvements firm has secured £1.5 million in contracts in Waste & Utilities, Medical, Hospitality, Finance & Insurance, Manufacturing and Marine across the UK, Middle East and USA since the turn of the year. Following this significant business growth STC INSISO have also expanded their team, introducing 5 new members of staff, bringing the total headcount up to 20 plus a network of partner resources.

Placement student funding accelerates process safety product development Aberdeenshire headquartered process safety firm, Salus Technical, have been awarded funding from The Data Lab to secure a placement student to aid bringing new technology to market. Robert Gordon University (RGU) MSc Business Analytics student, John Leitch, is joining the company for a 12-week placement, as part of Scotland’s innovation centre for data and AI, The Data Lab’s MSc programme.

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Qatar, with the world’s third largest reserves of natural gas, is a strategically important market for pipeline technology specialist STATS Group. In response to increased activity levels, STATS has strengthened its Qatari operation, recently recruiting additional project engineers and technicians as the company continues to create significant in-country value. The company has established a strong reputation for its market leading technology in Qatar with significant awards for the supply of pipeline isolation and intervention equipment to major Qatari operators as part of their Emergency Pipeline Repair Systems (EPRS).

Nucore Group Pursues Growth and Diversification Plans Following Restructure Aberdeen headquartered Nucore Group has completed a restructure and refinancing deal which has attracted fresh investment to pursue its ambitious growth strategy. With the continued support of Beechbrook Capital, Nucore Group will be investing in people, R&D, systems and its rental fleet to support its growth and diversification into new sectors and geographical markets.

now keen to continue its sharp upward trajectory by delivering an increasingly diverse subscriptionbased service to new and existing customers.

New services available thanks to the agreement will include access to expert advice and guidance on sales function gap analysis, sales strategy development and implementation, goal setting, sales training and coaching, CRM optimisation, pipeline development and forecasting as well as sales activity, conversion and reporting.

Prospect 13 is Scotland’s first virtual marketing support consultancy and was established by Cerri McDonald in 2018. It supports others to better manage marketing and communications activities as well as raise profile through effective stakeholder engagement. From Aberdeen, Cerri and her team represent clients in a range of sectors including oil and gas, education, technology, IT, professional services, manufacturing and third sector. The company is busy throughout the UK and also supports clients operating in Norway, Kazakhstan, Malaysia, Australia and New Zealand.

TMM Recruitment Launches New Executive Search Service Aberdeen-based TMM Recruitment has invested in the next phase of the company’s growth with the launch of its new executive search service, TMM Executive. Led by financial recruitment specialist and current CEO, Amanda McCulloch, the service will focus on the appointment of board level finance and operations professionals and non-executive directors. Amanda explains: “COVID-19 has emphasised the importance of effective leadership during times of volatility, uncertainty or change.

Recruiting the best executive talent for your business has never been more important yet many local businesses don’t know where to turn for help."

Expansion for Kaseum Technology at Moorfield’s Aberdeen Energy & Innovation Parks Moorfield Group, the owner and landlord of Aberdeen Energy and Innovation Parks, has agreed lease renewal terms and an expansion with Kaseum Technology at the Energy Development Centre in Bridge of Don. Kaseum has also agreed to expand its presence by 30% at the EDC having secured a lease on Unit 4, taking their total space to 6,700 sqft.

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COMPANY NEWS RCP's Continued Growth & Expansion

Business Development Manager Stewart Henderson

New Business Development Manager Joins RCP Ltd Due to continued growth and expansion, RCP is delighted to announce the appointment of Stewart Henderson as the new Business Development Manager of RCP. Stewart joins RCP with over 13 years of experience as a Business Development Manager, working within industries such as O&G, Renewable Energy, Engineering and Advertising. Stewart will work closely with the RCP engineering team and will be responsible for promoting, selling and further development of RCP's range of services and products to new and existing clients within multiple industry sectors.

Stewart Commented "I am very pleased to have joined the RCP team as Business Development Manager. I find RCP to be a passionate growing company with solid foundations and potential, with an excellent service offering and product range to suit various industry requirements. It's an exciting time to be joining the company and I am looking forward to the future and continuing to build on the great successes RCP has enjoyed so far".

Ben Knight, Managing Director of RCP Commented "This is a very exciting time for RCP as we grow and expand into new industries and I am delighted that Stewart has joined our rapidly growing highly-skilled team. Stewart has invaluable knowledge and experience of the specialised area of business development, which will assist him in forging strong working relationships with new and existing customers across the globe".

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ENERGY NEWS

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JULY 2021

UK NORTH SEA

Energy Review

By Tsvetana Paraskova

Opportunities for the UK offshore industry in the energy transition, plans and new guidance for emissions reductions, trading updates, and project implementations featured in the UK oil and gas sector at the end of May and in June.

The UK oil and gas sector is recovering from the COVID impact and is poised for a major transformation as it positions itself for a lower-carbon future, according to the 33rd Oil and Gas survey conducted by Aberdeen & Grampian Chamber of Commerce’s Research Chamber in partnership with the Fraser of Allander Institute and KPMG UK. A total of 75% of contractors anticipate moving into renewables work over the coming three to five years—the highest level recorded since the question was first asked in 2015. On average, they believe oil and gas will account for less than three quarters of their business activity by 2025 – down from the current average of 86%, the survey found.

In the six months to April, contractor confidence in the UK Continental Shelf (UKCS) has significantly improved from a net balance of -76% reported six months ago to +6%. This is a welcome rise from the expected forecast reported six months ago where 58% of contractors expected the outlook to worsen, according to the survey.

“The industry is on the cusp of transformation and much of our findings reflect the collective sense of anticipation. It certainly feels that in Aberdeen we are heading towards the ‘new normal’ after a long period of reliance on carbon-based energy sources,” Martin Findlay, senior partner at KPMG in Aberdeen, said.

The UK could become the ‘Silicon Valley of energy’, OGUK Chief Executive Deirdre Michie said at the speech opening the UK offshore oil and gas industry’s Annual Conference on 1 June.

UK NORTH SEA REVIEW SPONSORED BY

With the right support, the UK could be the global leader in the critical areas of the future, such as emissions reduction, clean energy, and low-carbon technologies, she added.

“We are choosing to be responsible and drive down our industry emissions while investing in the energies of the future – at a pace which is leading the way globally,” Michie said.

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ENERGY NEWS

The Oil and Gas Authority’s (OGA) 2020 UKCS Stewardship Survey showed that performance in the UKCS has remained positive with some improvements from the previous year.

“Oil and gas will continue to be needed for decades to come and must be produced and used with less impact on the environment – that is why we are working with government, industry, and our regulator through the North Sea Transition Deal to make our operations healthier and greener,” Tholen added.

“Recent discoveries in the UKCS particularly in the Central North Sea have been high in volume, indicating the quality that the basin still offers and highlighting the need for energy transitionconscious exploration,” the OGA said.

The face-to-face event of the SPE Offshore Europe 2021 show was postponed to 1-4 February 2022 in Aberdeen, while the conference will run virtually from 7-10 September 2021, the organisers said in the middle of June.

“The September conference will be strongly focused on the energy transition and supporting the industry’s role in delivering net zero. With further high-level energy transition content at the face-to-face event in February 2022, SPE Offshore Europe will straddle COP26, providing a unique learning opportunity as strategies, experiences and technologies are shared,” Phil Chandler, Director, Europe & Caspian Events at SPE, said.

Despite the challenges posed by the 2020 shock to the industry, production efficiency in the UKCS was sustained at 80%, reaching the OGA’s target for the second year in a row.

Capital expenditure in the basin over the next 5 years is forecast to drop by £2.9 billion, due to the impact of COVID deferrals and the low oil price on immediate expenditure. Still, current projections already indicate ongoing recovery, thanks to re-assessed project economics and modifications for emission reductions. Capital expenditure is expected to rebound to previous forecast levels by 2023, the OGA said.

The authority also published its Stewardship Expectation outlining the ways in which companies should collaborate with their supply chain contractors. According to the authority, strong contracting relationships are needed to ensure the UK has an effective and sustainable supply chain. Currently, there are instances where relationships between companies and their supply chain have been undermined by poor behaviour or practice including a lack of commitment to industry standard payment terms and overly complex and time-consuming tendering negotiations, the OGA said On 22 June, the OGA issued updated guidance on flaring and venting, which sets out a tougher approach to driving reductions, through clear principles and using the OGA consenting regime and stewardship activity.

The new guidance includes zero routine flaring and venting for all by 2030 at the latest, and a requirement that all new developments pre-Concept Select should be planned and developed on the basis of zero routine flaring and venting.

“We will monitor actual outcomes closely and reflect in decision-making when operators apply for consents and authorisations,” said Hedvig Ljungerud, Director of Strategy at the OGA. Industry body OGUK welcomed the new guidance, with OGUK Sustainability Director Mike Tholen saying: “The OGA’s update to flaring and venting requirements shows welcome ambition in this COP26 year and is one we share.”

COMPANY AND PROJECT NEWS

Deirdre Michie

"We are choosing to be responsible and drive down our industry emissions while investing in the energies of the future – at a pace which is leading the way globally"

Neptune Energy announced in early June the digitisation of five of its operated offshore platforms in the Dutch, Norwegian, and UK North Sea. Neptune Energy created ‘digital twins’ for its K9-A, L5-D and F3-B platforms in the Netherlands, Gjøa in Norway, and Cygnus in the UK Southern North Sea. This will enable approximately 90 site inspections each year to be carried out from onshore, accelerating work schedules, reducing costs, and cutting carbon emissions associated with offshore travel, the company said.

UK gas company IOG plc confirmed on 7 June that the Blythe and Southwark gas platforms, which will operate as normally unmanned installations (NUIs), had successfully been installed at their respective offshore field locations in Q2, in line with the project schedule.

“These facilities are integral to our infrastructureled hub strategy and form a pivotal link between our co-owned and operated offshore pipeline network and our onshore Thames Reception Facilities at Bacton Terminal,” said IOG chief executive Andrew Hockey.

Tailwind Energy Ltd announced on 8 June the completion of the acquisition of Decipher Energy Limited and its subsidiaries, including a 100% operated interest in the Orlando Field.

Orcadian Energy said on 9 June it intends to seek admission of its shares to trading on the AIM market of the London Stock Exchange. Orcadian is also seeking to raise gross proceeds of around £5 million to progress its assets. The floatation is expected to support Orcadian Energy’s progress towards the commercialisation of its viscous oil assets located in the UK North Sea. “We look forward to welcoming new investors as we progress this next phase of development of our North Sea oilfields,” Steve Brown, CEO of Orcadian, said.

On 23 June, Orcadian Energy said that the development of the Pilot oil field had been optimised to significantly reduce emissions.

The project will be in the lowest 5% of global oil production, according to a Masnadi et al analysis.

UK NORTH SEA REVIEW sponsored by www.ogv.energy I July 2021

UK North Sea

BRENT OIL PRICES OVER THE YEARS July review

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YEAR AGO

- BRENT OIL PRICE 2020 - $43.24 Oil is set to end July with a gain in New York ahead of OPEC+ plans to return supply to the market after the group’s historic output cuts, while the coronavirus pandemic continued to spread across many major economies.

Serica Energy has successfully installed new completion equipment at the Rhum R3 well and a flow test has now been performed.

The successful recompletion of R3 will increase the Rhum production capacity utilising the existing facilities located on the Bruce platform and will, therefore, not lead to significant additional CO2 emissions.

Harbour Energy plc, the company created from the merger of Chrysaor Holdings and Premier Oil, said in its trading and operations update on 23 June that the final commissioning for the Tolmount gas project in the Southern North Sea was underway with production start-up expected around the end of July. The project would add 20,000-25,000 boepd, of which 50% net to Harbour Energy.

“With the majority of this year’s planned maintenance shutdowns nearing completion, drilling activity ramping up and Tolmount first gas expected shortly, we look forward to production increasing over the remainder of 2021,” Harbour Energy’s chief executive officer Linda Z Cook said.

Martin Findlay, Senior Partner at KPMG

“The industry is on the cusp of transformation and much of our findings reflect the collective sense of anticipation. It certainly feels that in aberdeen we are heading towards the ‘new normal’ after a long period of reliance on carbon-based energy sources,”

Futures reversed Thursday’s decline to trade above $40 a barrel. Deep production curbs by the Organisation of Petroleum Exporting Countries and its allies have helped oil rebound from its plunge below zero in April, but it’s a precarious time to be adding more supply to the market as virus cases continue to expand rapidly through some American states and stages a comeback in Asia. Data Thursday showed the U.S. economy suffered its sharpest downturn since at least the 1940s in the second quarter, highlighting the devastating impact of the pandemic.

5

YEARS AGO

- BRENT OIL PRICE 2016 - $44.95 The price of Brent crude is down 16% from its 2016 high and 70% from its all-time high in 2014. Brent crude dropped 1.3% to $42.66 a barrel, while US crude fell 1% to $40.73 per barrel.

The energy industry has been trying to cope with a new status quo of low oil prices and slowing demand.

They are having to reconsider expansion plans and production levels. Exxon has cut its spending plans by 38% but that was not enough to offset the dip in the price of crude oil.

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10

YEARS AGO

- BRENT OIL PRICE 2011 - $116.97 The crude oil markets sustained high price levels in 2011, as the spot price of Brent averaged $111.26 per barrel, marking the first time the global benchmark averaged more than $100 per barrel for a year.

The price increases in 2011 reflected tightness in the global crude oil market that began in 2010 and marked the highest crude oil prices since 2008.

Demand growth in emerging markets, notably China and the Middle East, drove crude oil prices higher in 2011 as well. During the first six months of 2011, the demand for petroleum products in countries not part of the Organisation for Economic Cooperation and Development (non-OECD) grew by almost 4%, just as the market was coping with the loss of Libyan exports.

ENERGY TRANSITION

MARINE & SHIPPING

ROBOTICS & AI

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ENERGY NEWS

By Tsvetana Paraskova

Europe

Energy Review

New oil discoveries offshore Norway, the road to UK’s net-zero targets and the impact of climate change on the economy, and major low-carbon energy projects and deals were the highlights in the energy industry in Europe this past month.

Oil & Gas

per barrel”, said SVP Operations & Asset Development, Ine Dolve.

Norway’s Ministry of Petroleum and Energy has awarded stakes and operatorship in four new exploration licences in Arctic areas to seven companies: Norske Shell, Equinor, Idemitsu Petroleum Norway, INEOS E&P Norway, Lundin, OMV (Norway), and Vår Energi. One of the licences is located in the Norwegian Sea and three in the Barents Sea. Equinor will operate two licences, while Vår Energi and INEOS will each operate one licence.

Vår Energi announced two oil discoveries offshore Norway in the span of just one week.

First, Vår Energi said in mid-June it had made a new oil discovery in the Garantiana West prospect in the northern part of the North Sea. A week later, Vår Energi announced a new significant oil and gas discovery in production licence PL027 in the Southern North Sea.

Norway’s government said days before the award of the licences that it would not leave behind its oil and gas sector although it would bet on offshore wind, hydrogen, and electrification to meet its commitment under the Paris Agreement.

“The main goal of the government’s petroleum policy - to facilitate profitable production in the oil and gas industry in a long-term perspective - is firmly in place,” Petroleum and Energy Minister Tina Bru said.

OKEA ASA, operator of the Draugen platform, and partners Petoro and Neptune Energy Norge, have made the decision to develop the Hasselmus gas discovery, which will be the first tie-back to the Draugen production platform and will add over 4,000 barrels of oil equivalents per day to production.

Aker BP started production from the Gråsel oil discovery in the Skarv area in the Norwegian Sea, four months ahead of the original schedule.

“The development solution is based on re-use of existing infrastructure. That has helped make Gråsel an extremely robust project, both technically and commercially, and with a break-even price of around 15 dollars

www.ogv.energy I July 2021

Equinor said in June that new wells at Valemon would extend profitable operations at Heimdal, which is processing gas from Valemon. The Heimdal partners have now decided to extend operations at Heimdal to 2023.

The Norwegian energy major also announced the sale of its refining business in Denmark to Klesch Group. The sale includes the Equinor Refining Denmark A/S (ERD) company consisting of the Kalundborg refinery and terminal in the northwest of Zealand, the Hedehusene terminal near Copenhagen, as well as associated infrastructure and industrial property.

Equinor presented in mid-June its new strategy to accelerate the company’s efforts to invest more in low-carbon energy sources. The major will accelerate investments in renewables and low-carbon solutions to more than 50% of gross annual investments by 2030.

“We are optimising our oil and gas portfolio to deliver even stronger cash flow and returns with reduced emissions from production, and we expect significant profitable growth within renewables and low carbon solutions. This is a strategy to create value as a leader in the energy transition”, Equinor’s President and CEO Anders Opedal said.

Low-Carbon Energy Solutions The UK sees a widening gap between the level of risk climate change poses and the level of adaptation to mitigate the impact. Adaptation action has failed to keep pace with the worsening reality of climate risk, according to a new comprehensive independent assessment led by the Climate Change Committee (CCC).

“The UK has the capacity and the resources to respond effectively to these risks, but it has not yet done so. Acting now will be cheaper than waiting to deal with the consequences.

Government must lead that action,” said the committee, urging the UK government to consider a set of 61 risks and opportunities in the next set of National Adaptation Plans, due from 2023.

In mid-June, UK Export Finance (UKEF) signed a memorandum of understanding (MoU) with ORE Catapult that will help bring global trading opportunities to UK suppliers and propel UK renewables exports. As part of the cooperation agreement, ORE Catapult and UKEF will raise awareness of support that can be provided to assist UK businesses in the renewable energy sector, the UK government said.

The solar industry in the UK is expected to double in size by 2030, the Solar Energy UK association said, but warned that the industry needs to treble to align with the net-zero targets. The association called on the government to set a 40 GW target of solar capacity by 2030, which could result in 13,000 new jobs, £17 billion in additional economic activity, and a 4.7% cut in total UK carbon emissions.

The Hydrogen Strategy Now campaign carried out a survey among industry leaders in the UK on the progress and potential of the UK hydrogen sector, and the policy measures required to maximise the potential to create jobs and contribute to achieving the net-zero target. A total of 78% of respondents believe that the 5 GW hydrogen production target set out in the Ten Point Plan could be more ambitious, while 73.7% think Scotland is doing the most on hydrogen compared to the other devolved administrations, the survey found.

A study commissioned by the Oil and Gas Authority (OGA) has concluded that an Energy Hub in Bacton could provide low-carbon energy for London and the Southeast for decades to come and help in the drive to net-zero greenhouse gas emissions. The gas fields of the Southern North Sea and the Bacton Gas terminal, in Norfolk, have been part of the UK’s energy backbone for more than 50 years; with offshore wind being part of the mix since 2004.

“We now look forward to working closely with interested parties to thoroughly explore all of the elements involved in making this become a reality,” Scott Robertson, OGA Director of Operations, said.

Europe

Renewable Capacity Additions, Deals, and Tenders

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The solar industry in the UK is expected to double in size by 2030

Ocean Winds UK said in early June that the Moray Offshore Windfarm (East) commenced exporting power to the National Grid.

“We look forward to completing Moray East to its full 950 MW capacity; to winning the Contract for Difference (CfD) auction which will enable us to construct Moray West, and to competing for ScotWind leases including development in the Moray Firth; all before the end of this year,” said Dan Finch, Managing Director of Ocean Winds UK. TotalEnergies, Macquarie’s Green Investment Group (GIG), and Renewable Infrastructure Development Group (RIDG) formed a consortium to bid for sites in Scotland’s forthcoming offshore wind leasing round (ScotWind).

TotalEnergies also entered in June into an agreement with SSE Renewables to acquire a 51% stake in the Seagreen 1 offshore wind farm project. The 1,140 megawatts (MW) project has reached simultaneously a final investment decision and financial close. Designed to cover the energy needs of around 1 million homes, the project will start producing renewable electricity from end of 2022.

bp will also pursue offshore wind development in the Sørlige Nordsjø II licence area after agreeing to join Statkraft and Aker Offshore Wind in a consortium bidding to develop offshore wind energy in Norway.

Lightsource bp will invest 900 million euro in Portugal under a co-development partnership with local company INSUN for five utility-scale solar projects. Collectively, the projects aim to add over 1.35 GW of low-carbon, renewable power to Portugal’s energy mix.

Baker Hughes and Borg CO2 AS, a Norwegian carbon capture and storage developer for industrial clusters, agreed to collaborate on a carbon capture and storage project to serve as a hub for the decarbonisation of industrial sites in the Viken region of Norway.

Lightsource bp is also expanding solar operations in Spain, where it has grown a 2.6 GW solar development pipeline in less than six months through strategic partnerships, in addition to the 400 MW that are built or in construction. bp ventures has invested $7 million in smart electric vehicle (EV) charging firm, IoTecha, leading a $13.2 million investment round. This investment in IoTecha is aligned with bp’s aim to provide over 70,000 public EV charging points worldwide by 2030, the UK supermajor said.

Shell has awarded Worley a contract to help it create a green hydrogen factory in the Netherlands. Worley won the early engineering services contract by Shell to support the development of a 200 MW electrolysis-based hydrogen plant on Tweede Maasvlakte in the Port of Rotterdam. The final investment decision for the project is expected to be made later this year.

Shell, BKK, and Lyse plan to jointly bid for licences for offshore wind projects in Norway, in both areas that the Norwegian government has opened for development, Sørlige Nordsjø II and Utsira Nord.

The UK sees a widening gap between the level of risk climate change poses and the level of adaptation to mitigate the impact. Adaptation action has failed to keep pace with the worsening reality of climate risk...

Ørsted plans to invest the equivalent of over US$57 billion by 2027 as part of a strategy to become a global green energy major. The company currently has 12 GW of installed renewable capacity around the world, and plans to nearly triple that capacity to 50 GW by 2030.

GE Renewable Energy and LafargeHolcim announced on 10 June a memorandum of understanding to explore circular economy solutions to utilise materials from decommissioned wind turbines. LafargeHolcim is currently exploring how decommissioned wind turbine blades can be turned into sustainable construction materials.

“We are delighted to work with LafargeHolcim on these critical projects, which will help to improve the sustainability of wind power now and well into the future,” Jérôme Pécresse, CEO of GE Renewable Energy, said.

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ENERGY NEWS

By Tsvetana Paraskova

US

ENERGY REVIEW

US oil and gas firms have announced more mergers in recent weeks, while the Biden Administration suspended oil and gas leases in Alaska’s Arctic National Wildlife Refuge and suffered a setback in court in its effort to pause lease sales for oil and gas production on federal lands and waters.

Meanwhile, US oil and gas producers continue to keep capital discipline and are not rushing to boost drilling activity despite the fact that oil prices have rallied in recent weeks and the US benchmark, West Texas Intermediate, hit $70 per barrel in the middle of June. The US oil and gas sector has also seen job additions recently, with employment rising from the lows of last year.

Mergers Wave In recent weeks, several US oil and gas firms decided to merge to combine their strengths in order to generate more free cash flow and return more cash to shareholders.

At the end of May, Cabot Oil & Gas Corporation and Cimarex Energy Co announced that they had entered into a definitive agreement to combine their businesses in an all-stock merger of equals. The terms of the share exchange ratio reflects an enterprise value for the combined company of approximately US$17 billion.

The deal will see the combination of Cabot’s 173,000 net acres in the Marcellus Shale and Cimarex’s approximately 560,000 net acres in the Permian and Anadarko basins, giving the new business a multi-decade inventory of highreturn development locations in the premier oil and natural gas basins in the United States.

“The combination of Cabot and Cimarex will create a free cash flow focused, diversified energy company with the scale, inventory and financial strength to thrive across commodity price cycles,” said Cabot’s chairman and chief executive Dan O. Dinges.

In another deal, Colgate Energy Partners III, LLC said in early June it would buy a majority of the assets owned by Luxe Energy LLC in an all-stock transaction. This combination creates one of the largest private companies in the Permian Basin, with around 57,000 net acres, around 45,000 Boepd and 4 rigs running as of 1 June.

www.ogv.energy I July 2021

“This transaction enhances our already bestin-class balance sheet and puts us in a position of strength as we look to opportunistically pursue further consolidation,” said James Walter, Co-Chief Executive Officer of Colgate.

A week later, Colgate Energy said it had agreed to purchase from Occidental around 25,000 net acres and 10,000 Boepd in Reeves and Ward Counties, Texas, for approximately US$508 million.

on 6 January 2021, and subsequently issued 10-year leases on nine tracts covering more than 430,000 acres.

“The Department is notifying lessees that it is suspending oil and gas leases in the Arctic Refuge, pending the review, to determine whether the leases should be reaffirmed, voided, or subject to additional mitigation measures,” the Interior said.

Employment in the US oil and gas sector is recovering from the lows seen in the summer of last year

Meanwhile, Independence Energy and Contango Oil & Gas Company announced they had entered into a definitive agreement to combine in an all-stock transaction. The combined company will have an initial equity market capitalisation of approximately US$4.8 billion and enterprise value of around US$5.7 billion. The combined business will be headquartered in Houston and expects to operate under a new name and under a new ticker symbol.

US Administration Vs Oil Leases While the US shale patch was looking at ways to consolidate in order to boost shareholder value and free cash flows, the US Administration suspended oil and gas leases in Alaska’s wildlife refuge which the previous Administration had sold during its final days in office.

The US Department of the Interior suspended on 1 June all activities related to the implementation of the Coastal Plain Oil and Gas Leasing Program in the Arctic National Wildlife Refuge, pending completion of a comprehensive analysis under the National Environmental Policy Act (NEPA).

Under the previous administration, the Bureau of Land Management (BLM) held a lease sale

Indigenous and environmental groups applauded the suspension of the Arctic Refuge leases, thanking President Joe Biden and Interior Secretary Haaland “for taking this step toward protecting the Arctic Refuge from oil activities.”

Alaska’s Governor Mike Dunleavy criticised the Administration’s move to suspend the leases, saying that “Our leases for oil and gas are valid and cannot be taken away by the federal government.”

“I oppose this assault on Alaska’s economy and will use every means necessary to undo this egregious federal overreach. Alaska does responsible oil and gas development in the Arctic under stricter environmental standards than anywhere else in the world. Yet the federal government is focused on trying to stop our ability to produce oil and gas,” Governor Dunleavy said.

In mid-June, Judge Terry Doughty of the U.S. District Court for the Western District of Louisiana issued a preliminary injunction, blocking the Biden Administration’s pause on oil and gas lease sales on federal lands and in federal waters. The preliminary injunction was granted to Louisiana and 12 other US states that had sued the Administration over the moratorium on federal oil and gas lease sales.

US The judge’s order directs the Department of Interior to resume sales, including planned future lease sales in the Gulf of Mexico and Alaska’s Cook Inlet.

“This ruling is a repudiation of the Administration’s policies on fossil fuel development on federal lands.

Interior is expected to publish a report on the program in the coming days and has released a statement indicating they are reviewing the ruling and plan to follow its direction,” said Tim Tarpley, SVP Government Affairs & Counsel, who analyses federal policy for the Energy Workforce & Technology Council.

Following the Louisiana judge’s ruling, the American Petroleum Institute (API) urged the Administration to follow the court’s order.

“The federal leasing pause is harmful to our nation’s national security, environmental progress and economic recovery,” said Kevin O’Scannlain, API Vice President of Upstream Policy.

“We are pleased to see the court ruling that natural gas and oil leasing must resume on federal lands and waters, and we urge the administration to move expeditiously to follow the court’s order and lift the federal leasing pause. Now is the time for the administration to put an end to this ‘import more oil’ policy that threatens American jobs and deprives state and local communities of much-needed revenue, all while likely increasing emissions and the risks of climate change,” O’Scannlain added.

The US Continues To Add Upstream and Oilfield Services Jobs Employment in the US oil and gas sector is recovering from the lows seen in the summer of last year, when the crash in oil prices and the global demand destruction in the pandemic forced operators to significantly scale down drilling activity and optimise headcount costs.

US energy technology and services sector employment increased by an estimated 9,707 jobs in May, according to preliminary data from the Bureau of Labor Statistics (BLS) and analysis by the Energy Workforce & Technology Council. The 1.6% growth in May comes after the industry added nearly 17,700 positions in March and April. According to BLS data, the sector has added more than 27,000 jobs over the past three months after hitting a pandemic low of 591,413 jobs in February. Employment in the sector is down 13.8% since the onset of the pandemic in March 2020, the Council said.

Meanwhile, upstream oil and natural gas employment in Texas expanded by 1,600 jobs in May compared to April, according to data from the Texas Workforce Commission cited by the Texas Oil & Gas Association. The job count in May stands 7.9% higher, or 12,500 more, than that of the low point in September 2020. Total upstream employment in Texas is 170,000 jobs, which pay among the highest wages in the state, the association noted.

“The positive numbers are welcomed news, yet a great deal of caution exists as the world readjusts to increased demand levels. The industry continues to play an enormous role in safely delivering the products and power Americans need every day and takes this responsibility seriously,” said Todd Staples, president of the Texas Oil & Gas Association.

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ENERGY NEWS Mohammad Barkindo said at the meeting of the Joint Ministerial Monitoring Committee (JMMC) which preceded the OPEC+ ministerial meeting.

MIDDLE EAST

“As with the economy, the market outlook for later this year looks especially promising. In fact, we anticipate that demand will surpass 99 mb/d in the fourth quarter, which would put us back in the range of pre-pandemic levels,” Barkindo added.

OPEC Continues To Expect Strong Oil Demand Rebound

Energy Review

A week and a half later, OPEC’s Monthly Oil Market Report (MOMR) for June reiterated the organisation’s view that global oil demand, driven by the economies in the United States and China, will rebound strongly in the second half of the year.

By Tsvetana Paraskova

Although the economic recovery was delayed at the start of the second quarter due to the COVID resurgence in India, Japan, and some parts of the Eurozone, the advance in vaccinations and the easing of restrictions “lend optimism that the pandemic could be contained in the few months to come,” OPEC said in the report.

The monthly meeting of the OPEC+ alliance, OPEC’s optimistic outlook on global oil demand this year, and Global oil a flurry of oil and gas demand is also contracts feature in this month’s overexpected to pick view of the oil and up pace in the gas industry in the second half Middle East.

of 2021

OPEC+ Keeps Plans To Ease Production Cuts During a quick meeting on 1 June, OPEC and its non-OPEC partners led by Russia reaffirmed the previously endorsed plan to ease the collective oil production cuts by 2 million barrels per day (bpd) by July.

The OPEC+ group’s oil production is set to rise by 350,000 bpd in both May and June and by more than 400,000 bpd in July. Additionally, Saudi Arabia is currently also gradually easing its extra unilateral cut of 1 million bpd by July.

The OPEC+ decision to stick to the plan for unwinding part of the oil output cuts signalled once again to the market that the group is confident that rising demand as economies recover from the pandemic would absorb the additional supply.

“The Meeting noted the ongoing strengthening of market fundamentals, with oil demand showing clear signs of improvement and OECD stocks falling as the economic recovery continued in most parts of the world as vaccination programmes accelerated,” OPEC said in a statement.

“The projections for oil are largely unchanged from our last meeting, with demand expected to grow by 6 mb/d to around 96.5 mb/d on average for the year, an increase of 6.6%,” OPEC Secretary General

www.ogv.energy I July 2021

As a result, global oil demand is also expected to pick up pace in the second half of 2021, reaching 99.0 million bpd, up from 94.1 million bpd in the first half, with improving mobility in major economies supporting petrol and on-road diesel demand. OECD Americas is forecast to be the largest contributor to oil demand growth in 2021, according to OPEC, although overall oil demand in the region is not expected to fully recover from the 2020 slump.

In the developing economies, oil demand growth will be driven by China and other Asian markets including India, despite the coronavirus resurgence in the second quarter, OPEC noted.

“A healthy rebound in economic momentum is anticipated to stimulate industrial fuel demand, while demand for petrochemical feedstock is also projected to support demand growth in 2021,” the organisation said.

“Overall, the recovery in global economic growth, and hence oil demand, are expected to gain momentum in 2H21,” OPEC said.

OPEC’s optimism, combined with signs of continued demand growth at the start of

Middle East the summer driving season, sent oil prices rallying to $75 per barrel at the end of June.

Analysts expect OPEC, led by the largest producers in the Middle East, to continue to unwind cuts in a measured and gradual way in order to prevent sinking of oil prices.

Contracts and Deals Saudi Arabia’s oil giant Aramco closed on 18 June a share sale and purchase agreement under which an international investor consortium, including EIG and Mubadala, bought a 49% stake in Aramco’s subsidiary Aramco Oil Pipelines Company for US$12.4 billion. Aramco Oil Pipelines Company and Aramco entered into a 25-year lease and leaseback agreement for Aramco’s stabilised crude oil pipelines network. Aramco continues to hold a 51% majority stake in Aramco Oil Pipelines Company and retains full ownership and operational control of its stabilised crude oil pipeline network.

The OPEC+ decision to stick to the plan for unwinding part of the oil output cuts signalled once again to the market that the group is confident that rising demand as economies recover from the pandemic would absorb the additional supply.

“It is a significant milestone that reflects the value of our assets and paves the way forward for our portfolio optimisation strategy.

We plan to continue to explore opportunities to capitalise on our industry-leading capabilities and attract the right type of investment to Saudi Arabia,” Aramco’s president and chief executive officer, Amin H. Nasser, said, commenting on the deal.

“This transaction utilises our world-class pipeline infrastructure to create additional value for our shareholders, reinforcing our Company’s resilience and ability to adapt in a rapidly changing business environment,” said Abdulaziz M. Al Gudaimi, Aramco Senior Vice President of Corporate Development.

In another deal concerning Aramco, Baker Hughes said on 1 June it had deployed its remote operations digital technology across Aramco’s drilling operations, encompassing more than 200 sites, the largest deployment of its kind in Baker Hughes’ history.

By connecting all drilling sites with an integrated solution, Aramco enhances its view of its drilling operations in real time, Baker Hughes said.

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“We will continue to expand our upstream digital capabilities to transform core operations, improve efficiency and reduce emissions,” said Maria Claudia Borras, executive vice president of Oilfield Services at Baker Hughes.

Saudi Aramco also raised in June US$6 billion via the issuance of the world’s largest US dollar-denominated corporate sukuk, or Islamic bond. Aramco’s first international dollar sukuk attracted demand 20 times the initial targeted issuance size, CEO Nasser said.

In recent months, Aramco has reportedly sought to raises cash as it is keen to continue financing its massive annual US$75 billion dividend to shareholders, the largest of which is the Kingdom of Saudi Arabia with over 98%.

In the United Arab Emirates, the Abu Dhabi National Oil Company (ADNOC) has announced the award of a $744 million contract for the full field development of the Belbazem Offshore Block, as part of its efforts to maximise value from all of Abu Dhabi’s fields as it expands its oil production capacity to 5 million bpd by 2030. Located 120 kilometres northwest of Abu Dhabi city, the Belbazem Block consists of three so-called marginal offshore fields: Belbazem, Umm Al Salsal, and Umm Al Dholou.

Full production capacity is expected at 45,000 bpd of light crude with API gravity of around 35 degrees and 27 million standard cubic feet per day (mmscfd) of associated gas from Belbazem. First oil is expected in 2023, ADNOC said.

The Abu Dhabi firm also awarded in the middle of June a contract to Italy-based engineering, drilling, and construction company Saipem for the Optimum Shah Gas Expansion (OSGE) & Gas Gathering project in the United Arab Emirates. The US$510 million contract will include the expansion and upgrade of the existing Shah gas plant, the Italian firm said.

In Qatar, Japan Drilling Co announced on 16 June that its subsidiary Japan Drilling (Netherlands) B.V. had entered into a drilling contract with North Oil Company for the provision of the jack-up drilling rig HAKURYU-10 at the Al Shaheen Oilfield offshore Qatar. Estimated time for start of the operations is the second quarter of 2022.

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WORLD PROJECTS

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WORLD PROJECTS MAP

BRAZIL - Equinor Bacalhau Oil Field (Phase 1) US$8bn

Equinor and its partners have declared FID on the project. Further to the announcement, the Subsea Integration Alliance announced the award of the EPCI contract for the SURF and SPS scopes and Siemens Energy has been awarded a contract to provide a turnkey subsea equipment package.

JUNE 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

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

SAUDI ARABIA - Saudi Aramco Berri Oil Field - Expansion US$4bn

GUYANA - ExxonMobil Stabroek Exploration Drilling Programme US$ Undisclosed

ANGOLA - Sonangol Kwanza Basin Deepwater Hub US$5bn

McDermott has received a Conditional Letter of Award for the EPCC contract related to the CPF for the Tilenga project. McDermott is understood to be in a consortium with Sinopec International Petroleum Service Corporation, with the contract valued at around $2 billion in future work. Formal contract award remains subject to Tilenga Partners approval.

Sinopec Engineering Group has secured a subcontract from Saipem to provide EPC services for the Berri processing plant.

A new discovery has been made through the drilling of the Longtail-3 well. Drilling at Longtail-3 encountered 70 metres of net pay, including newly identified, high quality hydrocarbon bearing reservoirs below the original Longtail-1 discovery intervals. The well is located 3.5 kilometres south of Longtail-1 well and it was drilled in more than 1,860 metres of water by the Stena DrillMAX.

Yinson in partnership with Technip Energies has confirmed that it is performing a Pre-FEED study for an FPSO to be placed at Block 20/11 offshore Angola. Technip Energies will be providing topside design work.

www.ogv.energy I July 2021

The contract is said to be worth $200 million and covers construction of infrastructure, pipes, steel structures and installations facilities for the Berri expansion.

WORLD PROJECTS

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CANADA - Air Products & Chemicals Inc. Edmonton Net-Zero Hydrogen Energy Complex US$1.07bn

Air Products Canada together with the Government of Canada and the Province of Alberta have announced plan to build a CAD$1.3bn (US$1.07bn) net-zero hydrogen energy complex in Edmonton. The hydrogen facility will be able to produce 30 tonnes of hydrogen per day using auto-thermal reformer (ATR) method, featuring Haldor Topsoe technology. Baker Hughes will provide Air Products with NovaLT16 gas turbines for this project.

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MALAYSIA - Petronas Block SK316: Kasawari Gas Fields – Phase 2 US$2bn

GERMANY - Parkwind Offshore Wind Farm Arcadis Ost I US$ Undisclosed

NETHERLANDS - Shell Port of Rotterdam Hydrogen Project US$Undisclosed

Kasawari phase two is targeting the area with a higher carbon dioxide content at the gas field and the plan is to inject CO2 in a nearby depleted gas field. The first injection is expected to be achieved by Q4 2025.

Parkwind has awarded JDR a contract to supply, test, and terminate 33kV subsea cables for the wind farm. JDR will supply the 45km of 33kV array cable that will connect the wind farm’s 27 MHI Vestas V174-9.5MW wind turbines. DEME Offshore has awarded Energomontaz-Pólnoc Gdynia (EPG) a contract for the fabrication and delivery of equipped secondary steel structures for the wind farm.

Shell has awarded Worley a services contract to support the development of the 200 MW green hydrogen hub.

The final investment decision for Kasawari phase two is likely to be in 2022. This CCS scheme will be the first in Malaysian waters.

Under the contract, Worley will provide early engineering services for the green hydrogen plant including integration with other assets such as offshore wind, pipelines, electrical grids and Shell’s Pernis refinery.

WORLD PROJECTS SPONSORED BY

www.the-eic.com

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PEOPLE & DIVERSITY

By Tsvetana Paraskova

DIVERSITY & INCLUSION IN THE ENERGY SECTOR The energy sector has seen increased diversity and inclusion in recent years. Yet, more action in hiring and retention of diverse talent is needed to allow all employees regardless of gender, age, or ethnicity to thrive in an industry where women and ethnic minorities have been historically under-represented.

Governments, non-profit organisations, industry associations, and energy companies are increasingly adopting diversity and inclusion strategies to allow everyone willing to work in the energy industry to have equal opportunities to flourish as employees or senior executives at oil, gas, and renewable energy firms.

Advancing gender equality and diversity in the energy sector is one of the proposals of the UK Presidency of the G7 group of most developed nations.

Governments vow to address unequal representation “Successfully transitioning to a net zero future will depend on our ability to harness all possible talent in service of the breakthrough ideas and solutions that will transform our societies,” the UK government says.

“There is more work to be done if we are to ensure the net zero transformation results in growth that is inclusive, and where benefits are shared. We have the responsibility to act together to support women and other groups to succeed and thrive in industries where they have been under-represented in the past,” it noted.

The UK Presidency proposes commitments to make gender, equity, and diversity central to the global energy sector’s recovery efforts, as well as to invest in the growth and development of diverse talent to ultimately advance them into leadership roles.

G7 plus other industrialised nations and more than 135 energy companies have joined the 'Equal by 30' public commitment by public and private sector organisations to work towards equal pay, equal leadership, and equal opportunities for women in the clean energy sector by 2030.

Women account for 32% of energy sector workforce globally According to a recent survey for EqualBy30 carried out by technology company Diversio, women account for 32% of the global energy sector workforce, while racial and ethnic minorities account for 22%.

Black and Latinx individuals are under-represented compared to population, said Diversio, which used AI algorithms to identify employee gender and ethnicity in the energy sector as part of its mission to improve diversity and inclusion (D&I) globally.

Another finding from the survey highlighted the fact that while women make up 39% of roles at the entry level, they represent just 26% of all executives and C-Suite leaders. For racial and ethnic minorities, the C-Suite leaders’ percentage is even lower, 20%.

Focusing on inclusion is important for companies to advance D&I in the energy sector. The top inclusion metrics are inclusive culture, fair management, career development, workplace flexibility, and workplace safety ensuring all employees are not experiencing sexual, psychological, or physical harassment, Diversio’s research showed.

www.ogv.energy I July 2021

PEOPLE ASSET & INTEGRITY DIVERSITY

UK diversity & inclusion in energy Although the UK oil and gas industry has a rich and diverse heritage, as with comparable industries, the sector has historically struggled to proportionately reflect the diversity of the workforce as a whole, the OGUK Diversity & Inclusion Survey Report from April 2021 found.

According to the survey, industry accepts that it needs to do more to attract those who reflect the richness of talent in society, to empower 100% of the capacity within collective businesses, and to unlock the potential that everyone has to offer.

A total of 57% of survey respondents rated the D&I culture in their organisation as strong or very strong, compared to 14% who regarded the D&I culture in their organisation as weak or feel that there is no D&I culture at all, according to the survey of 1,600 people from over 100 different organisations across 23 job families who completed the D&I survey. Most of the respondents were male (55%), white ethnic background (84%) and based in Scotland (80%). 11% of the survey respondents were from an ethnic minority background, and 10% of respondents identified themselves as LGTBQ+ or preferred not to say.

Smaller or medium sized supply chain companies are less likely than operators and larger supply chain companies with more than 1,000 employees to have a strong D&I culture, according to OGUK’s survey.

Flexible working was identified by respondents as a top activity to create a more diverse and inclusive workplace and the number of employees across the industry working flexibly at the moment is very high, due to the COVID lockdowns and restrictions.

Currently it is estimated that around 25% of the UKCS workforce is female. On the assumption that around 140,000 people are directly and indirectly employed in the sector, it means that just over 35,000 women are currently employed in the industry, OGUK said in the report.

“At the current rate of progress and assuming balanced gender recruitment going forward, it will be well in to the 2050s before the industry can expect gender parity in the basin, more than ninety years after the first production of hydrocarbons. To accelerate change, more direct action and intervention will be required,” the report reads.

“To stimulate new ideas and to approach problems from different viewpoints, the industry will need to continue to retain and attract people with different life experiences, work experiences, personalities, behaviours and educational backgrounds. Diversity can be cultivated in different ways, but should include fostering a culture of openness, embracing diverse opinions and welcoming input beyond the consensus,” the authors of the report wrote.

For women in board roles at the largest UK energy employers, only 18 out of 80 companies have female executive directors, POWERful Women and PwC said in their 2021 statistics in May. Women hold just 24% of all board seats and 14% of executive director positions at those 80 companies, the report said.

“That doesn’t bode well for success in the urgent race to Net Zero. We need to deliver diversity much faster if our sector and our economy are going to be fit for the future,” said Ruth Cairnie, Chair of POWERful Women.

“The figures on women in the executive pipeline reveal how some companies, including our Energy Leaders’ Coalition, are showing commitment to developing more women up through the ranks and into leadership positions, as a way to prepare for the energy transition and the new world they are operating in,” Cairnie commented on positive action to advance diversity and inclusion.

“We need others to follow their lead, with the encouragement of the energy regulators, and for best practice to be implemented across the sector,” Cairnie added.

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US energy sector diversity grows but still trails total workforce representation Despite the negative effects of the pandemic on women in total workforce in the United States, women have made progress in representation in the US energy technology and services sector since 2018, the latest study by the Energy Workforce & Technology Council and its research partner Accenture showed. The share of women in US oil and gas workforce rose to 19% in 2021 from 16% in 2018.

Women are more equally distributed between business support and technical roles but continue to face challenges in promotion and leadership roles, the study found. In addition, ethnic minority representation within the sector lags the overall US workforce and faces similar challenges in representation when it comes to management and top leader roles.

According to the Council, D&I starts with finding and tapping into diverse talent pools for candidates, while flexibility and support enable finding more diverse talent for the sector.

Attracting diverse, innovative talent, focusing on retention, and expanding advancement opportunities could boost D&I and the resilience of the energy sector workforce, the Council noted.

“As women and minorities left at larger rates than the overall U.S. workforce, this brings greater pressure on oil and gas companies pursuing inclusion and diversity goals, and that is a challenge.

Diversity will remain key to creating the new ideas that companies need to deliver a safe, affordable and sustainable low-carbon future,” said Council CEO Leslie Beyer.

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PEOPLE & DIVERSITY

Investment in People should be an organisation's priority As the Oil and Gas Industry starts to rebound and emerge from the Pandemic, many companies rightly prioritise Energy Transition.

Still, one area that needs consideration, even more, is the investment in people.

This should be the first port of call, particularly when many organisations have faced many redundancies and changes due to the Pandemic 2020/21 and the oil price dropping in 2020. This has left many of the workforces out of work for over a year and will affect the competence of individuals whereby they will need to demonstrate currency with changes in Legislation and Technology as we see massive changes in our industry.

www.ogv.energy I July 2021

Namaka Compliance can support organisations investing in people by screening potential Leadership candidates and existing Leadership from Supervisors to Executive Leadership Teams. In addition, we can develop Leadership programmes and mentoring to ensure that there is structure and progression opportunities throughout the organisation.

Along with Leadership Development, Namaka Compliance can support organisations with the development of their Personnel through a structured Competence Management System (CMS), whereby we can ensure that all individuals competence is tracked along with their training. Our online CMS ‘Athena’ allows each candidate to have a personal Training Development Plan assigned to them and identify Energy Transition roles in the renewable sectors.

As well as our online CMS, we can support organisations with competence support through Training and Competence Audits, determining gaps and recommendations.

Development of Competence Frameworks through to providing Competence Assessor support remotely.

Namaka Compliance can support organisations investing in people

As the Energy industry looks towards the future, whether that be continuing and increasing operations in Oil and Gas, expanding internationally, and Energy Transition, we should ensure that people are at the forefront, and Namaka Compliance can help support this. Please contact us at support@ namakacompliance for further information.

Namaka Subsea are established Subsea Consultants and global subject matter expert specialising in Subsea Operations.

For more information visit www.namakasubsea.com

PEOPLE & DIVERSITY

THE PRICE OF ALLYSHIP

The story of Jane Elliot is a powerful reminder that the path to allyship is paved with discomfort. Allyship is more than attending a webinar, the use of a hashtag, the liking of a post or the wearing of a lanyard. It is: • Enduring the discomfort of interrogating our hidden biases and assumptions.

By Dr Ollie Folayan

• The broadening of our social circles to include people who are different.

• The embedding of oneself in communities different from ours and like the participants in “Blue eyes/Brown eyes" exercise, walking a mile in another’s moccasins.

At a recent event I was invited to speak at, on allyship, I was struck by how much the energy sector has moved the conversation on diversity forward. Few now question the premise of the diversity agenda; we are now looking to get involved and change things. However, many while attracted to the idea of allyship view it through rose tinted lenses imagining it to be a collaborative endeavour akin to fundraising or volunteering.

The truth about allyship is however more demanding and this is because it is in many ways counter cultural.

Allyship is not necessary because people lack information, it is necessary because the perpetrators of oppression are invested in and benefit from the status quo.

So, what does true allyship look like?

We can find clues in recent history.

April 4, 1968 A schoolteacher in Iowa was listening to the evening news while ironing a tepee for a lesson about Native Americans when she learned of the assassination of the civil rights leader Martin Luther King Jr. As saddened as she was by the news, it was a conversation between a white reporter and a local black leader that stuck with her. The reporter had pointed his microphone towards the leader and asked "When our leader [John F. Kennedy] was killed several years ago, his widow held us together. Who's going to control your people?". Hearing the exchange, this schoolteacher decided to combine the lesson that she had prepared with a lesson about Martin Luther King Jr. To tie the lessons together, she used the Sioux prayer "Oh great spirit, keep me from ever judging a man until I have walked in his moccasins". The following day that teacher conducted the first of her "Blue eyes/Brown eyes" exercises with her third-grade class, an experiment that was the beginning of diversity training. The teacher’s name was Jane Elliot.

Jane divided the children, who were all white, by eye colour, and then told the children that people with brown eyes were smarter, faster, and better than those with blue eyes. This assumption led to drastic change in the behaviours of the pupils with brown eyes who were suddenly more

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• Being prepared to risk saying the wrong thing and then having the humility to receive feedback.

• Seeking out the unheard voice around the meeting table and asking their opinion.

• Giving unduly given credit to whom it is actually due.

• Resisting the urge to explain away my colleague’s concerns when she tells me that she fears my otherwise friendly colleague may have a problem working for a female lead. confident — and condescending. The children with blue eyes made silly mistakes and became timid and despondent. The following Monday Elliot reversed the exercise telling the brown eyed pupils how lazy they were. Elliott noticed that the blue-eyed pupils were much less nasty than the brown-eyed kids had been, perhaps because the blue-eyed kids now had empathy having just suffered alienation.

Jane later explained that she wanted to give her small-town, all-white students the experience of walking in a "coloured child's moccasins for a day". For participants in Jane’s experiment the impact was stressful; when the exercise ended, some of the kids hugged, some cried. Elliott reminded them that the reason for the lesson was the King assassination, and she asked them to write down what they had learned.

Backlash This experiment which began in 1968 has now been carried out around the world and it still provokes strong reactions for and against to this day. The textbook publisher McGraw-Hill has listed Jane Elliot on a timeline of key educators, along with Confucius, Plato, Aristotle, Horace Mann, Booker T. Washington, Maria Montessori and 23 others. Yet what Elliott did continue to stir controversy. One scholar asserted that it is "Orwellian" and teaches whites "self-contempt."

A columnist at a Denver newspaper called it "evil".

Jane was ruffling feathers with her disruptive experiment.

Continuum The journey Jane took to her activism is best explained by the Allyship continuum created by business consultant Jennifer Brown in which she described allyship in four phases:

Apathy-AwarenessActivity-Advocacy.

• Speaking up for the underrepresented when they are not in the room.

• Calling out the dog whistle when it would be easier to just laugh along like everyone else.

• Advocating for our curriculum to better highlight the contribution of women and minorities.

• Being prepared to have our motives misjudged as virtue signalling or “woke-ism”.

• Being a disruptor of cultural hegemony, what the late US senator John Lewis liked to call “good trouble”.

We are at a time of unprecedented focus on inclusion and while such emphasis is welcome, it is inescapable that much of the noise is still coming from a vocal minority. Also unavoidable is the reality that little has changed in statistics when it comes attraction into the energy sector, retention, and progression of the underrepresented to leadership roles. In the absence of the substantive, the performative is all that is left but it cannot be the substitute. We need the missing piece.

I believe that the piece that is missing is true allyship (the response of the majority to the plight of a minority).

Back to Jane Elliot Shortly after her experiments, Jane Elliot shared her essays with her mother, who showed them to the editor of a local paper. The Associated Press then followed up and within a month Jane Elliot was flown to New York to be interviewed by talk show host Johnny Carson on the "Tonight Show". She chatted about the experiment, and before she knew it was whisked off the stage. Hundreds of viewers wrote letters saying Elliott's work appalled them.

This is the price of Allyship.

To quote another writer, Allyship is not a badge, it is a battle scar.

AFBE-UK promotes higher achievements in education and engineering particularly among people from black and minority ethnicity (BME) backgrounds.

For more information visit www.afbe.org.uk

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PEOPLE & DIVERSITY

Even with its push for improved diversity and inclusion policies, the oil and gas industry continues to face an uphill battle in gaining a greater gender and ethnicity balance. Getting this right is central to the long-term success of the global industry.

CREATING EQUAL OPPORTUNITIES Through Digital Learning

Yet, it will take more than developing new policy.

A wholescale shift in culture and approach is required. Ensuring equal and affordable access to world-class training is an important pillar in this wider change.

Training often happens on the job, either through arranged programmes or mentorship, but equally through dedicated courses which often involves time away from work.

These traditional methods have struggled to become fully inclusive, where the risk that both conscious and unconscious bias in the mentoring and training selection process will continue to hamper progress.

In other regions, particularly emerging oil and gas economies, national oil companies continue to rely on western companies for technical support with many international firms regarding local content legislation as a hurdle to be overcome rather than an opportunity to build capacity.

However, companies are embracing digital solutions five times faster today than before the pandemic. This rapid acceleration provides a huge opportunity to level the playing field.

Digital training is a more democratic solution, allowing courses to be rolled out company-wide, accessed 24/7 on any device, and allowing collaboration across companies and borders.

The days of being one of the lucky few chosen for training are coming to an end. Affordable online solutions remove many of the challenges for employers, while at the same time giving employees equal opportunity. In this way, a female engineer in Uganda can get access to the same skills development as her counterpart in Aberdeen.

Improving access to online training among the global oil and gas industry’s workforce will provide people from minority groups with equal opportunity to develop the critical skills and competencies needed to aid career progression whether that is in Aberdeen, working for another IOC or supporting the development of an emerging energy region.

Companies are embracing digital solutions five times faster today than before the pandemic.

And, supporting people from minority groups to succeed in the oil and gas industry starts early. At Norwell EDGE we have forged partnerships with university engineering departments around the world including in Uganda, Kenya and Nigeria as well as

www.ogv.energy I July 2021

in Houston. We have also partnered with the Association for Black and Ethnic Minorities (AFBE) to develop an interactive e-learning game aimed to encourage school children to consider an engineering career.

While there’s no silver bullet, lowering the cost of training and increasing its accessibility has an important role in breaking down barriers to learning and career progression. If we can provide wide-scale training at a drastically reduced cost, we will see many more people able to participate in the workforce.

Norwell EDGE is an eLearning platform delivering high-quality technical oil and gas training.

The learning belongs to each individual user, staying with them throughout their careers.

For more information visit www.norwellengineering.com

PEOPLE & DIVERSITY Our Principles, Ethos and Approach

By Dami Ladeinde, Diversity & Inclusion Transformation Manager, Xodus

Our inclusion journey, led by our managing director, Steve Swindell and the leadership team with support from myself, have committed to work with all parts of the organisation to deliver on our vision and ambitions.

How we are creating a more inclusive company

We are tailoring and underpinning our D&I approach to who we are to ensure it’s authentic. We started our D&I journey with communication as it is important for our people to have safe spaces and avenues to talk and be listened to. We’ve spent time having conversations to understand experiences and gain insights. These discussions have identified the broad range of diversity we have across the company, including attributes which might not be readily visible, such as vocal fluency. We are conscious and thoughtful about how we navigate issues, because we know D&I topics can impact people differently and to ensure we can provide support.

Our people leaders (line managers, project managers etc.) play a critical part in this journey. They are involved in hiring, managing and oversight of people and execution of work.

They play a key role in how we implement and sustain changes through our employee life cycle, and can leverage enablers such as training, inclusive recruitment, working practices and flexible working.

We are tailoring and underpinning our D&I approach to who we are to ensure it’s authentic.

“Together, we will deliver a responsible energy future” - this is our vision at Xodus, and we believe that diversity and inclusion sits front and centre to achieving this.

We are proud to employ people from a range of diverse backgrounds and attributes. By attracting and nurturing diverse high-calibre personnel and deploying their capabilities in an integrated, innovative and intelligent way, we can make our vision a reality.

We know that a diverse and inclusive environment fosters creativity and innovation, and improves decision making. We also recognise diversity of our people as a major part of our continued success as an energy consultancy and key to our future. However, most importantly, diversity and inclusion for us is about our people: understanding individual needs and experiences, respecting and welcoming differences and ultimately, equity and equality.

This year, we set out clear, concise ambitions for diversity and inclusion targeted at improving opportunity, representation, progression and potential for females and under-represented groups in the energy industry. Our ambitions include 50/50 female/male graduate intake across all divisions, increasing the percentage of women to make up at least 30% of our business at all levels, halving our gender pay gap, improving the ethnic diversity of our leadership team and making it possible for project managers to work part-time.

Our first gender pay gap report showed a 42.5% difference in median pay between our male and female workforce. While there are many societal, industry, and historical skill trends contributing to this narrative, this is not good enough, and we need to do better.

We want to ensure Xodus is a company where every person feels valued, included and that they belong. Our focus on inclusion is to ensure all people, regardless of gender, race, sexual orientation, age, background, religion, beliefs, and disability, can belong at Xodus.

We’ve also established Employee Resource Groups which comprise of a range of individuals with various perspectives and views from across the company to ensure actions are followed up.

Right Partners. Right Providers.

Learning from Industry We support evidence-based best practice and knowledge in diversity and inclusion. We have therefore sought out the right expertise from consultants, training and resource partners.

For this reason, we have joined organisations such as AXIS Network Aberdeen and UN Global Compact – Target Gender Equality.

Internally, we are providing interactive training across the company to cover a range of aspects such as inclusive leadership, communication, language and behaviours. We believe understanding and allyship are critically important and take the opportunity to share information and increase awareness around key inclusion dates and events such as Pride, INWED and religious holidays.

Make no mistake, Xodus is already a great company but we still have aspirations to be better and become even more inclusive where everyone is welcomed, has a voice and thrives in our team.

Xodus is a leading global energy consultancy, offering engineering and advisory support to clients in the oil and gas, LNG, renewables and utilities industries worldwide. For more information visit: www.xodusgroup.com

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PEOPLE & DIVERSITY

BUILDING A BASELINE: Diversity & Inclusion in the UKCS Survey Report

The UK oil and gas industry has a rich and diverse heritage, employing people from across the world and from every part of society. We know that the contribution from people of all backgrounds is essential to harnessing new ideas, new technology and new ways of working to deliver the energy transition and net zero carbon emissions by 2050.

However, as with comparable industries, the sector has historically struggled to proportionately reflect the diversity of the wider workforce as a whole. We know that we need to do more to attract those who reflect the richness of talent in our society, to empower 100% of the capacity within our collective businesses, and to truly unlock the potential that everyone has to offer.

As a result, in 2019 the OGUK Diversity & Inclusion Task Group (D&ITG) was created to drive the agenda on diversity and inclusion in the sector, catalyse action and share good practice. Made up of a variety of professionals from a range of roles across the sector, the D&ITG launched the 2020 Diversity and Inclusion (D&I) survey at the end of last year. The idea was simple: engage directly with the workforce and gain a more complete understanding of the current position of diversity and inclusion in the sector. In doing this, we can focus our drive for change and ensure continuous improvement.

In April of this year, we launched our findings of that survey. The report, titled Building a Baseline: OGUK Diversity & Inclusion Survey Report, was produced in partnership with Robert Gordon University (RGU). It was shaped by responses from more than 1,600 people from over 23 disciplines and over 100 organisations, and provided powerful insight on our industry’s key challenges. As the title suggests, this report is not an end in itself, but rather, the foundations from which all future D&I improvements can be made.

Key findings of the report include: • 57% of respondents rated the diversity and inclusion culture in their organisation as strong or very strong.

• 38% felt focus on diversity and inclusion in their organisation had improved in the last few years.

• 34% saw the importance of diversity and inclusion increase due to COVID-19.

• 14% regarded the D&I culture in their organisation as weak or felt there is no D&I culture at all.

As well as this, the survey enabled the creation of a new UKCS D&I index, which comprises the average D&I score from around 50 core questions in the survey. The index reflects the

www.ogv.energy I July 2021

level of industry maturity in key D&I areas such as belonging, openness, respect, career, opportunities, organisation, culture, leadership, impact and flexibility. The index highlights where the industry is perceived to be performing well and identifies areas for improvement. Currently, the report showed that the 2020 UKCS D&I index is 7.1 (on a ten-point scale).

To provide further insight, the data was analysed by type of role, organisation, age, gender, ethnicity, religion and by job family. The survey data was also compared to similar surveys conducted in other sectors and comparable job families.

With these findings, the OGUK’s D&I Task Group was able to identify five key focus areas that can drive progress on the industry’s diversity and inclusion journey over the next 12-18 months. They are: 1. Inclusive & diverse leadership & culture ‘D&I Leadership and awareness’ and a more ‘Diverse Leadership Team’ were in the top five activities to create a more diverse and inclusive workplace identified by respondents to the survey and it is clear that a committed focus and a determination to drive change in this area has the potential to be transformative.

2. Inclusive recruitment Inclusive recruitment was also identified by respondents as a key activity to improve D&I. 3. Diversity & inclusion in SMEs Culture is fundamental to the success of D&I initiatives so supporting smaller and mid-size companies will be a key focus for the D&ITG in 2021.

4. Flexible working Flexible working was also identified by respondents as a top activity to create a more diverse and inclusive workplace and the number

of employees across the industry working flexibly at the moment is very high.

5. The 31-40 age group.

This age group are the next leaders of our industry, and yet had the lowest view when compared to other age groups in relation to their organisation’s D&I commitment and culture.

Having established this baseline for the industry, we hope to create a platform for very real, productive, and targeted efforts and initiatives in driving a more diverse and inclusive industry.

This will require the response and commitment from many stakeholders (companies, organisations and individuals) across the industry in order to drive us forward.

As well as launching this report, OGUK D&I Task Group also announced its Ally Network. Led by Susan Grayson, Director, D&I, Resourcing, Talent & L&D Spirit Energy, OGUK’s Ally Network runs in parallel with the activities of the D&I Task Group, providing a platform for industry professionals to come together and share examples of best practice, opportunities to develop and to stay up to date with all the activities coming out of the task group. To register for the OGUK Ally Network, visit: diversityandinclusioninenergy.co.uk/get-involved-2/ The value case for diversity and inclusion is generally acknowledged across the industry, but if we are to achieve the various goals this industry has set itself on diversity & inclusion, this needs to be a business priority for everyone across the sector to ensure that it continues to flourish and lead in a global and changing environment.

To keep up to date with all the latest news, blogs, and articles to come from OGUK’s Diversity and Inclusion Task Group, please visit www.diversityandinclusioninenergy.co.uk.

Here you can read the full Building a Baseline: OGUK Diversity & Inclusion Survey Report.

Proud champions of the UK offshore oil and gas industry. OGUK is the leading representative body for the UK offshore oil and gas industry.

For more information visit www.oguk.org.uk

INNOVATION & TECHNOLOGY

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SIMULATION TECHNOLOGY Elevating engineering from concept and prototype to digital twin

With many years’ experience of working in partnership with high profile and innovative organisations in this sector, EDRMedeso has a deep understanding of the unique issues faced by the Oil & Gas industry and applying Ansys’ comprehensive suite of engineering simulation tools alongside best-in-class support services to deliver maximum gains.

EDR Medeso As an ANSYS Elite Channel Partner founded in 1986, EDRMedeso provides products and services for a comprehensive suite of engineering simulation tools. With offices across Northern Europe and working with over 1000 organisations, our experience spans nearly every field of engineering and design.

The group’s UK presence provides support, training and services to the region. Events and briefings are run regularly, providing updates on product development, novel utilisation and peripheral services such as Cloud computing.

Company Details Website: www.digitallabs. edrmedeso.com Email: info@edrmedeso.com Tel: +44 (0) 114 254 1234 Address: AMP Technology Centre, Brunel Way, Sheffield S60 5WG England, UK

Technology Development stage: Commercial

Our customers turn to us when they want to achieve robust design quickly and with limited cost, when they are looking to improving product quality or when they need to predict equipment performance in harsh environments. Reducing time to market and development costs, whilst at the same time enhancing engineering productivity are givens.

Delivering Understanding and Insight Ansys engineering simulation technology allows those involved in the oil and gas sector to design, verify and deliver more reliable equipment for drilling, production, transport, process and refining with greater efficiency and at lower cost, in good time.

Whether for projects in heavy oil, oil shale, deep water, Arctic, pre-salt, shale gas, LNG or oil-sand, and for both existing and new projects, engineering simulation software enhances product development processes in all these environments.

Equally, application of the technology in revisiting mature and small reserves with enhanced oil recovery practices, is effective in delivering efficiencies.

Futureproofing Designs at the Forefront of Technology – the Digital Twin A recent trend has seen the emergence of Digital Twins and adoption of this concept is increasingly more

commonplace. The ‘Internet of Things’ (IoT) now makes it possible to go a step further when delivering solutions. By integrating simulation with products as they exist and operate in the real world, issues with accessibility and operating conditions are negated, especially important when those conditions are typically hostile, operational downtime is critical or locations not easily accessible.

Working with clients to break down the requirements and parameters essential to a successful physics-based twin, EDRMedeso helps its customers take complex, high fidelity CFD/FEA models and convert them to real-time, cloud-based predictive tools with a web-based interface.

The Digital Twin simulation of a real component can then be explored based on the real-world data, streaming from the physical twin. This allows engineers to fast forward actual usage patterns to predict service and maintenance requirements on individual assets.

Being at the cutting edge of simulation technology development, EDRMedeso is well placed to listen to and work alongside its customers to deliver solutions that are of a real and immediate benefit, whether this is based on competitive advantage, accelerated new product deployment, better products/solutions with ultimately improved customer relationships and the predictive maintenance benefits that Digital Twins provide.

Launch date: 2012

INNOVATION ZONE SPONSORED BY

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INNOVATION & TECHNOLOGY

By A. Haresign

CONNECTING TO YOUR

DIGITAL FUTURE

Technology that enables EPCs to plan, execute, and commission some of the largest, most innovative, and successful projects in the Oil and Gas industry has been crucial to them remaining commercially competitive. Engaging experienced personnel, embracing new digital processes, utilising handheld devices, all with the option of Live data-tracking, means that challenging environments, such as the North Sea, West Africa, Western Australia, Gulf of Mexico, and China, all can save time and money while increasing safety.

Many EPC companies see the vast opportunities they can achieve by implementing an overall digital strategy. No more paper chasing, improved team productivity, and superefficient processes all have a net-result where companies deliver confidence to the customer, especially in Offshore projects where costs run much higher.

Jon Bell, CEO

A Shining Light Owner-operators must look at the Vendors they engage with and how they have embraced DX to increase productivity and improve risk management. CAPEX reductions have cast a shadow on Engineering and Construction businesses, with projects cancelled or rescheduled.

The shining light to these darkest of situations is clear and opportune; businesses must ready themselves rather than take the risk of losing out to competitors who have aggressively sought to continue on their digital journey.

MODS Connect MODS Connect is the overarching suite of software especially built for the challenges faced by EPCs and Operators on Brownfield projects. Joint Integrity, Materials Manager, Completions, Work Pack, SIMOPS and Progress Tracker are all contained within the MODS Connect brand.

Jon Bell is MODS’ CEO: “I’m proud of the projects we have worked on with our customers utilising our MODS Industrial Software Solutions. It is so rewarding to be a part of a Project from planning, fabrication, and installation through to construction and commissioning for handover. We are genuinely driving Digital Transformation forward at all levels within our customers’ business. We are not just Software Solution designers; we have actual, firsthand knowledge and experience of working both onshore and offshore, decades in fact. We know how challenging an environment it can be and are sympathetic of the systems, procedures, and associated problems especially when it comes to remote offshore installations. We, at MODS, offer a unique combination of technology and domain experience to help accelerate digital adoption with our customers and partners”.

Transparency & Visibility MODS Completions is one solution within the MODS Connect suite of software. This product ensures long delays and labor-intensive paper trails are a thing of the past. Robert O’Connor is MODS’ Completions Manager and is keen to highlight the typical pitfalls: “The Completion phase of a platform’s build or renovations is known as a laborious process that notoriously involves some sort of postponement of project schedules or handover goals. Technical integrity can also be affected impacting budgets, time, and efficiency. When you cannot give an accurate, up-to-date picture of the Completions state, stakeholders, understandably, ask for explanations as they want transparency and visibility in their investment.

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INNOVATION & TECHNOLOGY By creating a global sharing environment, and a single source of true information fed from a Completion management system (CMS), MODS Completions creates a visible and dependable integrity management system. The continuous CMS interface between the contractor and client mitigates any surprises, whilst auto-population, structured administration, and reporting from the database, gives a project its driving force from inception through to completion. Digital software such as MODS Connect offers these invaluable tools increasing clarity and accountability at every stage”.

The Connect suite of web-based software were created to be practical and functional with a contemporary interface and mobile handhelds designed to deliver instant updates and a high-acceptance rate by front-line workers.

The individual products cross-populate taking efficiency, accuracy, and accountability to the highest level. These time-saving functions allow personnel to focus on other aspects of the project, such as safety, performance, and productivity.

Live Long & Prosper Organisations involved in the management of tangible assets are focused on optimising performance and increasing profit margins.

One of the largest investments operators in the Oil and Gas sector make is in the equipment and infrastructure needed to do their job. Like anything we purchase and hold valuable, we need to look after it to ensure its wellbeing and longevity, otherwise known as Operational Excellence. By doing so, theoretically, performance and lifespan should be optimised.

Maximising value from operations is critical for organisations and therefore, so is managing asset health. Profitability in Plant operations is intrinsically linked with asset uptime. But what is also integral to any Asset manager’s job are the challenges associated with ageing infrastructures. Material cracks, corrosion, joint integrity – you name it – it is all related to Plant equipment wear and tear. Renewing, repairing, or adjusting can involve downtime, should issues go unnoticed, the worst-case scenario is an unscheduled shutdown or turnaround and that will inevitably blow schedules and profit margins. The problem is also compounded when incremental changes are made to the asset design, making it extremely difficult to keep track of its structural integrity.

The Devil Is In The Data With thousands of physical assets such as pipelines, plants, facilities, and equipment, all generating data, it is no surprise that legacy workflows and systems cannot keep up with demand. The vast amounts of information can lose accuracy, become difficult to manage and result in false reporting at critical moments. The full utilisation of quality data provides real-time visibility into production processes; the big challenge now, is to convert the masses of siloed information into valuable and actionable data.

running costs of the asset’s life-cycle. The utilisation of a 3D model or digital twin with the associated software answers many of these concerns. Together they assist in identifying exact specifications of where a plant defect is but also, they continuously update any changes made toward the final as-built data; the asset integrity dream becomes a reality.

MODS Reality, in fact, could be your answer!

Reality is a web-based application that provides a digital twin of a facility using a high-definition point cloud environment as the building block foundation. This is then used to enhance engineering, inspection, streamline scheduling, and work execution management for maintenance and minor modifications.

Productive & Profitable MODS is just one company successfully harnessing the power of digital technology in the Energy sector. Their collaboration with clients, flexibility in combining systems, and the full optimisation of collected data has produced software solutions that are not just powerful, but practical and fit for purpose. Facility management becomes a more controllable, cost effective and safer environment for all thanks to software solutions dedicated in design for a more productive and profitable future.

Dreams Become Reality No matter the asset issue, whether it is a complex problem in your plant or a single defect in a piece of equipment, Operators are continuously searching to significantly reduce

Powerful Software for the Energy Sector

with digital transparency Enabling you to be more commercially competitive, in planning, executing and handover of projects of any size.

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GREEN ENERGY

AN INNOVATIVE ROADMAP FOR

DECARBONISATION OF OFFSHORE WIND As more and more organisations make the transition into renewable energy, it’s important that there is funding, innovation, infrastructure and policy to support the growth of the industry. Offshore wind is already a major part of the renewable energy sector now and this is likely to remain true for the future.

It will, therefore, contribute significantly to the achievement of net zero targets in the UK and around the world.

Like all industries, realising the full potential of the offshore wind market will require collaboration between individuals, organisations and regulatory bodies.

“It has also become clear that the sector is lacking an effective risk-reward system. To make clean maritime work throughout the supply chain, we need offshore wind operators, vessel operators, vessel designers and builders, and ports to work together. As many are providers/clients to one another, the commercial relationships between them can sometimes limit the extent to which a collaborative approach to innovation is possible.

“A potential solution to help reduce or remove these barriers is greater Government intervention. This might take the form of public funding to support the development of port infrastructure, as is common throughout other European countries.

“Specific industry targets or government deadlines for decarbonisation might also help. This would provide a level playing field and potentially encourage greater collaboration both vertically and horizontally across the supply chain. Targets and deadlines could also help to make the business case for investment in clean maritime, placing greater emphasis on the need to transition and driving accelerated adoption of technologies.

Like all industries, realising the full potential of the offshore wind market will require collaboration between individuals, organisations and regulatory bodies. This is especially important for those who build, manage and operate associated ports and the vessels they support across the UK, which will need to increase capacity and evolve to meet the changing demands of the sector in the Clearly, the UK years to come. Stuart Barnes, Regional Partnership Manager for the Offshore offshore wind sector is Renewable Energy (ORE) Catapult (a in a strong position to dedicated member of RenewableUK), help realise even our discusses the innovation roadmap to most ambitious net the decarbonisation of offshore wind operations and maintenance (O&M) zero targets. vessels in the UK: “It’s important to understand the barriers that UK ports and vessel operators must overcome in order to support clean maritime operations in the O&M of offshore wind. The capital investment needed for development of clean maritime port infrastructure is the first hurdle, combined with physical constraints such as limits to the space available within some ports and the proximity to homes and workplaces that may limit opportunities for some forms of alternative fuel storage, for example. In addition, many ports face significant grid constraint issues, which must be addressed to unlock the potential for clean maritime operations.

www.ogv.energy I July 2021

“One thing is certain – we need to see demonstrations happening at scale very soon if the UK is to remain competitive with port operators elsewhere in Europe. We are already seeing planning, investment decisions development and construction of groundbreaking clean maritime infrastructure projects in Europe with ports such as Esbjerg, Antwerp, Copenhagen, Ostend, Heligoland and others mobilising for clean maritime operations – the UK must act now to keep pace.”

Turning his attention to the projects recently completed or currently in progress by ORE Catapult, Stuart demonstrates the scope of the company to support the industry and facilitate future growth. He continues: “ORE Catapult is currently involved with several projects that are helping to drive the industry forward. We’ve been working for the Department of Transport to create a roadmap to maritime decarbonisation for offshore wind O&M in the North Sea. We engaged with a wide range of UK and European industry stakeholders, focusing on technical, commercial and policy barriers to the decarbonisation of

GREEN ENERGY

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the sector. In identifying the main challenges, we were also able to make evidence-based recommendations for policymakers and industry – which has now been published.

“We have also been working with Bibby Marine Services to scope out a zero-emissions service operating vessel (SOV) concept, a project with financial backing from MarRI-UK. In addition, we are supporting several innovation consortia currently seeking funding to deliver clean maritime R&D projects in offshore wind with the support of the Government’s clean maritime demonstration competition.

There are projects looking into electric vessels, hydrogen vessels and offshore charging systems, to name just a few.

“Finally, we are excited to be working with partners including ABP, Lloyds Register, Rix fuels, Wood Group, Infrastrata, the Workboat Association, TP Group, MJR and ZEM-Tech to develop proposals for a national clean maritime demonstration hub based at the Port of Grimsby, which is the world’s largest offshore wind O&M port. It would be a really unique facility providing alternative fuels and shore-based charging facilities, bringing together innovators, regulators, class societies and industry to help rapidly develop and commercialise clean maritime innovation for the offshore wind industry and beyond.”

Clearly, the UK offshore wind sector is in a strong position to help realise even our most ambitious net zero targets. With the coming together of industry, continued innovation and Government policy designed to support rapid and streamlined growth, there will be some truly exciting opportunities for further significant decarbonisation.

Stuart concludes: “ORE Catapult believes that the offshore wind industry is ideally positioned to act as a springboard to broader maritime decarbonisation. If we can start to reduce barriers to market growth, with Government interventions facilitating standardisation and incentivising development, opportunities could be realised on a huge scale.”

If you are interested in finding out more about any of the work ORE Catapult is currently undertaking, please email info@ore.catapult.org.uk or visit the website www.ore.catapult.org.uk/.

For more details about RenewableUK and what you could benefit from joining, please visit www.renewableuk.com/

GREEN ENERGY ZONE WISH TO SPONSOR THIS SECTION?

www.ogv.energy/contact Stuart Barnes, ORE Catapult

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CONTRACT CONTRACTAWARDS AWARDS SPONSORED BY

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Infinity has been a five-time winner at the British Accountancy Awards and has

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Managing director Simon Cowie has been named Scottish Dealmaker of the Year on two occasions.

Our knowledge and experience mean we’re the ideal partner to support and advise management on a project-by-project basis or in a longer-term working relationship.

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Saipem wins two onshore drilling contracts in Saudi Chevron has awarded Valaris Limited a threeyear contract securing a drilling unit in the U.S. Gulf of Mexico (GOM), Valaris reported.

May 3, 2021, states the drillship’s existing contract with Chevron began in August 2020 and runs until January 2022.

Valaris noted the that it expects the contract for the drillship VALARIS DS-18 (Relentless) to commence in the first quarter of 2022, directly continuing the drilling unit’s current contract. Valaris’ latest fleet status report on

The DS-18/Relentless vessel can operate in up to 12,000 feet (3,658 meters) of water and drill to 40,000 feet (12,192 meters), according to drillship specifications on Valaris’ website.

Saipem secures six-well drilling contract from Wintershall Dea Saipem has been awarded by Wintershall Dea Norge a contract for the drilling campaign of six wells plus options to drill additional wells in the Norwegian sector of the North Sea. Operations, which are expected to start in 4Q21, will be performed by the semisubmersible rig Scarabeo 8, a drilling unit designed to be 'zero pollution and zero discharge' and equipped for operations in harsh environments.

The rig will operate in direct continuation with operations previously committed for other clients.

Maersk Drilling lands two development well contract in Brazil’s Patola field in direct continuation of the rig’s previously agreed work scope with Karoon Energy Ltd. The contract extension has a firm duration of 120 days, with a contract value of approximately USD 27m.

Karoon Energy Ltd has exercised an option to add the drilling of two development wells at the Patola field offshore Brazil to the work scope of the semi-submersible rig Mærsk Developer. The work is expected to commence in the second half of 2022,

www.ogv.energy I July 2021

“We’re delighted to add this additional work scope for Mærsk Developer which shores up the rig’s drilling program for 2022. We’re looking forward to establishing a strong and integrated teamwork focused on reaching the common objectives in our campaign with Karoon in support of their first new development project as a production company. The first item on the agenda is the safe and efficient workover of four wells at Baúna before Mærsk Developer will move on to drill at Patola,” says Thomas Lysgaard Falk, Head of International Division, Maersk Drilling.

Karoon Energy’s Chief Executive Officer and Managing Director, Dr Julian Fowles commented that "We are very pleased to continue to build our partnership with Maersk Drilling through extending our contract with them. The Patola development will add materially to our production base and the Final Investment Decision made today represents a key milestone for Karoon in Brazil. The Karoon team looks forward to working closely with Maersk Drilling to deliver both the Baúna workover campaign and the Patola Project safely and efficiently.”

Mærsk Developer is a DSS-21 columnstabilised dynamically positioned semisubmersible rig, able to operate in water depths up to 10,000 ft. It was delivered in 2009 and is currently operating offshore Suriname.

CONTRACT AWARDS Petrobras award new FPSO contract Saipem, leading of a joint venture with Daewoo Shipbuilding & Marine Engineering Co. Ltd (DSME), a main South Korean specialised shipbuilding and offshore contractor, has been awarded by Petróleo Brasileiro (Petrobras) a contract for the construction of the Floating Production Storage and Offloading Vessel (FPSO) named P-79 for the development of Búzios offshore field in Brazil.

The FPSO P-79 project is worth overall approximately 2.3 billion USD. Saipem’s portion is approximately 1.3 billion USD. The FPSO vessel will allow initial separation of gas from the oil extracted in the deep offshore reservoir and will have a production capacity of 180,000 barrels of oil per day (bopd) and 7.2 million cubic metres of (mcbm) gas per day, with

a storage capacity of two million barrels of oil.

Saipem and DSME will execute the entire FPSO project which encompasses the engineering, procurement, fabrication and integration of the topsides of the FPSO units and the installation of the mooring systems, as well as the hookup, the commissioning and the start-up.

The Búzios field, the world’s largest deepwater oil field, is located in the region of the pre-salt Santos Basin, approximately 200km off the coast of Rio de Janeiro at water depths ranging from 1,600m to 2,100m. Saipem is already present in the Búzios field where is executing a rigid subsea system installation contract.

portfolio diversification strategy. It is also a further demonstration of trust of our clients in our consolidated capability to manage complex, technologically advanced projects in compliance with the highest safety and environmental standards”.

Maurizio Coratella, Chief Operating Officer of the E&C Onshore Division, commented: “This project represents a key step forward in our

Petrofac secures contract for bp project in Mauritania and Senegal Petrofac will build on its 18-year tenure supporting the Kittiwake platform in the UKCS, following the award of a one-year contract extension from EnQuest.

Under the terms of the renewal Petrofac will continue in its capacity as Duty Holder of Kittiwake, a role it has held with EnQuest since 2014, and the asset’s previous owners since 2003.

Nick Shorten, Chief Operating Officer of Petrofac’s Engineering and Production Services business, commented: “The renewal of this key contract is testament to the strength of our relationship with EnQuest and our deep understanding of the Kittiwake platform. In October last year our asset teams marked

15-years without a lost time incident – a significant milestone which demonstrates the collaborative nature of our agreement and our collective commitment to safe and successful energy production.

“Over the term of our 18-year role on Kittiwake, we have managed a wide range of operational work scopes and brownfield projects enabling operational efficiencies and production improvement. We look forward to building on these efforts over the coming year through the successful completion of a number of planned subsea campaigns, which will maximise production volumes and further enhance our 2021 operational performance, including energy efficiency and emissions reductions.”

Worley secures a services contract at Burnaby refinery, Canada Worley has secured a services contract with Parkland Refining (B.C.) Ltd (Parkland) for its strategic projects at the Burnaby refinery in British Columbia, Canada.

Under the contract, Worley will provide consulting, engineering, procurement, construction management and commissioning services to support the strategic projects at the Burnaby refinery.

This is in addition to the existing relationship supporting sustaining capital work at the facility. The term of the contract is five years.

The services will be led by Worley’s Calgary office with support from Advisian, Comprimo, Worley’s North American offices and Worley’s Global Integrated Delivery team.

Advisian, Worley’s global consulting business, will provide technical expertise in areas including low-carbon fuels, emissions reduction and operational improvement.

Comprimo, Worley’s gas treating and sulphur technology business, will provide the technology and design for potential upgrades to gas treating and sulphur recovery units.

“We are pleased to continue supporting Parkland at its Burnaby refinery. We will

combine our long-term presence at the refinery over the last two decades with our technical expertise to deliver efficient and reliable operations, while remaining committed to delivering a more sustainable world,” said Chris Ashton, Chief Executive Officer at Worley.

CONTRACT AWARDS SPONSORED BY

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CONTRACT AWARDS Shelf Drilling seals Angola jackup deal with Chevron Dubai-headquartered offshore driller Shelf Drilling has secured a one-year contract with Chevron’s subsidiary Cabinda Gulf Oil Company for the 2007-built jackup rig Shelf Drilling Tenacious for operations offshore Angola.

The contract is expected to commence in January 2022 and includes multiple option periods, Shelf Drilling said.

“The rig will be highly customised for Chevron’s operations in Angola, including enhanced offline capabilities similar to our rigs working for Chevron in the Gulf of Thailand,” said David Mullen, CEO of Shelf Drilling.

According to Shelf Drilling’s fleet data, the rig completed its previous contract with Masirah Oil in April this year.

Financial details of the Chevron contract have not been disclosed.

www.ogv.energy I July 2021

CONTRACT AWARDS

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CONTRACT AWARDS SPONSORED BY

"Infinity Partnership is an awardwinning, multi-disciplinary accountancy and business advisory practice, with a proactive approach to customer service."

www.infinity-partnership.com

Sponsored by

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ON THE MOVE As control over the virus is regained, the overwhelming sense of uncertainty felt over the past 18 months has begun to dissipate and a return to a sense of normality in the not too distant future no longer feels like a pipedream. However, whilst the pandemic tipped familiarity its head overnight, the transition back to a precrisis workplace is not following this accelerated pace.

At the onset of the crisis, organisations were forced to react extremely rapidly; considerable urgency and flexibility was shown in redirecting strategies, refocusing employee remits and repurposing the physical working environment. These changes were born out of necessity and whilst challenging to navigate initially, resilience to the disruption birthed a redefined workplace. As infection rates ebb and social distancing mandates loosen, the lines between past traditions and new routines are not as clear cut as we enter a new normal.

Companies must appreciate that even as quantitative markers return to pre-pandemic levels, a permanent change has taken place in people and has altered the view on what business as usual could and should entail. Freedom from a one-size-fits-all office means that leaders now face a difficult task in reviewing

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www.ducatuspartners.com what the typical working week involves. Executives must recognise the evolution of operating practice and design work around individuals, whilst equally championing a decision which creates unity and enables productivity across the business. Talent is the cornerstone of executing organisational strategies and thoughtful consideration is required to shape a fit for purpose working model.

The endless set of options and combinations to inoffice, activity based and remote virtual working all has their own set of tradeoffs, both at a group and personal level regarding talent acquisition, management and development. Whilst the virus gave most businesses a crash course in alternative models, breaking tradition is by no means a new concept with major corporations rolling out such practices at scale almost a decade ago. Yahoo and HP both adopted an offsite model, yet ended this practice after concluding that the early benefits of the scheme were eroded in the long term.

The difference today is that these have typically been an out of the box experiment, rather than something which has undergone a universal trial and error period.

Armed with the benefit of hindsight regarding a reimagined day-to-day, executives must ensure their

Brian Edment

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approach is aligned to their operating model going forward. A review of business processes should be conducted to identify risks and opportunities and make step changes in addressing these to ensure a future fit workplace. To promote success in whichever scheme is adopted, communication is the most pivotal aspect. Leaders must commit to a path forward and share and reinforce what the future of work looks like at every layer. From a group wide perspective, aligning culture and establishing the organisational norms and behaviours which form this will be key. Teams must understand the shared standards around working practices to enable participative decision making, strengthen interpersonal relationships and facilitate collaboration. For individuals, a clear view on what the expectations are of their working arrangements and how this plays into delivering their purpose in the company must be set.

As the disruption settles, business as usual may take on a number of forms and re-establishing a shared organisational identify will be critical in the success of organisations in the next normal.

By Sean Buchan

Manageing Partner - EMEA at Ducatus Partners

Graeme Laughton

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Kousha Gohari

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THREE60 Energy Makes Key Senior Appointments

THREE60 Energy Group has made a series of key senior appointments to its well engineering group across the United Kingdom, Asia Pacific and North America. Brian Edment joins as Wells Manager and will lead operations across the Asia Pacific region, Graeme Laughton takes up the Wells Manager role for operations in the United Kingdom and Kousha Gohari has been appointed as Senior Production Engineer, leading operations across North America.

Brian has held senior positions with BP and Schlumberger covering both engineering and operations. Before joining THREE60 Energy, he held the role of Completions Engineering Manager at BP, based in Azerbaijan, Trinidad and Tobago and as Wells Advisor based in London.

Graeme joins from Aker BP, where he held the role of Senior Completion Engineer. There, he took a lead role in managing drilling campaigns from the concept phase to detailed design, and through to the planning and execution of projects. Prior to this, he held several roles at Schlumberger and Tendeka.

Kousha spent over 10 years at Baker Hughes, where he held a number of technical roles, including production and reservoir engineering consultant. Subsequently he joined Weatherford as Senior Reservoir Engineer. During his career, he has worked on major energy projects in the United Kingdom, Canada, United States and Middle East.

www.ogv.energy I July 2021

Kenny Murdoch

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Acteon Group Name New Chief Financial Officer

Acteon Group has announced the appointment of Kenny Murdoch as Group Chief Financial Officer following the retirement of previous incumbent Kevin Ovenden.

Kenny joins Acteon with 27 years of energy industry experience. He has spent 18 years of his career with Schlumberger in both regional and global finance roles. He has held global Chief Financial Officer roles with Maersk Oil and Bumi Armada, where he added investor relations and fundraising to his portfolio.

Kenny has also worked across a number of private equity backed projects and has lived and worked across Europe, North America, The Middle East, Asia Pacific and Russia.

Andrew Duncan

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North Star Names Renewables Director

North Star Renewables has appointed Andrew Duncan as Renewables Director.

The business has created a permanent role to focus on leading the company's expansion in offshore wind and increase its foothold in other green offshore energy industries. Prior to this, Andrew was working with North Star in an advisory capacity and brings more than 20 years of industry experience.

He has a strong track record of successful business development and bringing offshore wind vessels to market including the world’s first wind turbine installation vessel, as well as working at RenewableUK supporting its supply chain members.

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Lucille Bonnet

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Kilma Names New Managing Director

Kilma, the energy transition fund of international financial services firm Alantra, has named Lucille Bonnet as Managing Director. She brings a deep track record investing in innovative technology companies in the energy and industrial sectors.

Lucille joins from European seed investor HighTech Gründerfonds and was also previously part of the corporate venture team of RWE Innogy.

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HitecVision Appoint Senior Energy Executive

Private equity company HitecVision has appointed Lars Christian Bacher as a Senior Partner.

Prior to joining the firm, he served as the Chief Financial Officer of Equinor.

He has held a number of high profile positions over almost 30 years with Equinor, including as Executive Vice President Development and Production International, Canada Chief Executive Officer, Senior Vice President North Sea Operations and Senior Vice President for Tampen area.

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Lars Christian Bacher

Burness Paull Make Head of Energy Appointment

Burness Paull has appointed Bob Ruddiman to lead the law firm’s energy team.

Micah Foster

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Natural Gas Services Group Announces Chief Financial Officer Appointment

Natural Gas Services Group, a leading provider of gas compression equipment and services to the energy industry, has announced that Micah Foster has been appointed Vice President, Chief Financial Officer and Corporate Secretary. Micah brings over 17 years of experience and joins from Legacy Reserves, where he served in various roles including Chief Accounting Officer, Financial Accountant and Corporate Controller.

Paul Tanner

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Bob joins after nine years at Pinsent Masons where he most recently served as Head of Oil and Gas. Bob’s brings deep energy expertise having led teams acting on a wide variety matters in the sector, including representing energy majors, independents, utilities, individuals, service companies, private equity houses and banks.

He has worked on energy matters across multiple jurisdictions, operating extensively with clients across the United States, Canada, Europe, the Middle East and South East Asia in addition to the United Kingdom.

Minnie Lu

Waldorf Production Adds Deal-Making Capability with New Appointment

Waldorf Production has announced the appointment of Paul Tanner as a mergers and acquisitions expert as its General Counsel and Commercial Director. Paul joins from Spirit Energy where he held the role of General Counsel and Company Secretary. He brings more than 20 years of experience as an international lawyer, as well as deep energy expertise having spent almost 10 years with Shell and Centrica during his career.

He is a past chair of the Oil and Gas UK operators legal committee and has also worked with law firm CMS, Ledingham Chalmers and Hogan Lovells.

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Bob Ruddiman

James Burns

Wood Appoints Decommissioning Director

Wood has strengthened its capability in the decommissioning market with the appointment of Minnie Lu as Decommissioning Services Director.

Minnie joins Wood from Petrofac and has 20 years’ experience of decommissioning engineering work gained in the energy and construction industries. Prior to Petrofac, she was with KBR as the Lead Structural Engineer on the Gorgon Project and held the position of Engineering Mnaager with Scott White and Hookins. Her experience also includes working for PwC in the firm’s capital project services group.

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Detechtion Appoints Chief Financial Officer

Detechtion Technologies, the digital oilfield management solution provider, has announced that James Burns has been appointed Chief Financial Officer.

James joins the business from WG Consulting, where he was a Director in their Financial Advisory Services practice. Prior to this, he was an Internal Audit Senior Manager for KBR and earlier in his career, James worked in financial advisory service roles at Adams Harris and The Siegfried Group after beginning his career in public accounting working at KPMG.

Content provided by Ducatus Partners

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DECOMMISSIONING SPONSORED BY

www.wellsafesolutions.com

SAFE, SMART & EFFICIENT The complete package for well decommissioning Well-Safe Solutions provides a ground-breaking approach to the safe and cost-efficient decommissioning of on and offshore wells. We offer a specialist well abandonment service that allows operators to meet the challenges and regulatory imperatives around decommissioning, while significantly reducing costs.

CessCon Takes Delivery of the DP3 and DP4 for Decommissioning CessCon Decom, a Scotland-based firm specialising in decommissioning of oil and gas structures, has taken delivery of the DP3 and DP4 offshore platforms from Spirit Energy’s Morecambe Bay development in the East Irish Sea. Allseas’ single-lift vessel Pioneering Spirit delivered the two topsides to CessCon Decom's Energy Park Fife Facility. The topsides were transferred to Allseas’ Iron Lady barge in the River Forth before being offloaded across the quay to the dismantlement area.

The contract to decommission, decontaminate, dismantle, and recycle the DP3 and DP4 assets involves the processing of up to 23,000 tonnes of material at our Energy Park Fife Decommissioning Facility in Fife, Scotland.

The DP3 and DP4 installations which previously produced part of Spirit Energy’s Morecambe Bay gas fields – installed in the 1980s – were removed from the East Irish Sea earlier this year after a campaign to plug and abandon the platforms’ 12 wells.

The DP3 and DP4 offshore platforms first produced gas in 1985 when the South Morecambe field came online. The area continues to produce from the Central Morecambe, North Morecambe, DP6 and DP8 platforms.

Lee Hanlon, CEO of CessCon Group said: “Bringing the Pioneering Spirit to mainland Scotland for the first time was a significant achievement, the meticulous planning, and engineering by all parties ensured that the offload and set-down was executed safely, and on schedule. We will now commence dismantlement and recycling operations with a reuse and recycling target of 98% (by weight) of all materials, in line with our circular economy strategy, and we look forward to delivering a safe, efficient, and environmentally responsible project together with Spirit Energy and Allseas.”

Donald Martin, Decommissioning Projects Manager at Spirit Energy, said: “With some of the infrastructure in Morecambe Bay having been built

by Scottish fabrication yards, it feels fitting that the first platforms to be removed from the East Irish Sea will now be decommissioned and dismantled by a new yard in Fife.

“It has been a collaborative effort from Spirit, Allseas, CessCon, and all of our supply chain partners to get to this point, and we look forward to seeing CessCon’s team at work as they recycle or reuse the vast majority of material from these two platforms.”

Altrad support the decommissioning of an offshore gas platform Decommissioning these assets safely is becoming increasingly important for energy producers and it requires specialist skills and experience.

Altrad have supported Worley, and their client Allseas, with a range of services to enable the safe removal of Spirit Energy’s 11,000 tonne platform, DP3, at Morecambe Bay in the eastern Irish Sea.

The UK Continental Shelf (UKCS) contains a range of mature oil and gas assets, many of which are approaching the end of their useful working lives.

www.ogv.energy I July 2021

The decommissioning platform will be lifted and taken back to shore by Allseas’ Pioneering Spirit – the world’s largest construction vessel.

Altrad’s scope included access scaffolding, complex rigging and the cutting and disassembly of caissons, conductors and

platform legs, these essential, time critical works, were required prior to the removal of the platform via a single heavy lift.

Altrad utilised diamond wire saws and oxy acetylene torches to enable the cutting of each tubular, which were up to 36 inches in diameter.

The entire work scope was completed safely, without incident and within the condensed eightweek window permitted by the work schedule.

Chris Garland, Altrad’s Director of Upstream Operations, said, “I’m delighted we have been able to use our skills and expertise in support of the decommissioning of Spirit Energy’s assets in the eastern Irish Sea, wherein our teams have worked collaboratively with Worley to achieve a safe and successful outcome.”

DECOMMISSIONING Innovative thinking to overcome a decommissioning challenge This made the removal far more complicated, with a relatively straightforward drill rig pull rendered unviable due to there being insufficient clearance to pass these various attachments through the sleeves within the modular support frame (MSF).

As a result of the complexity of the project, a collaborative approach was adopted.

Representatives from companies including The WellGear Group, AquaTerra, Atkins, Worley, Rever Offshore, Scopus Engineering, and Underwater Cutting Solutions (UCS), all joined Fairfield in brainstorming solutions to overcome the tough challenges ahead of them.

With more than 750 suspended inactive wells in the UKCS today, there is the chance to learn from these projects - whether that is with driving the development of innovative solutions within the supply chain, building the capabilities needed to standardise the best practice, or managing and preparing late-life assets for efficient decommissioning.

The Greater Dunlin Area decommissioning project is one such example. Taking the Dunlin Alpha platform, satellite fields and infrastructure from the end of production to final site remediation has been a multi-year process, with a decommissioning programme that has required innovative thinking and an integrated approach between them and their supply chain partners.

Dunlin Alpha is a four-leg gravity base structure installed in the Northern North Sea in 1977. A critical part of decommissioning this asset was removing 45 well conductors – this process began in 2018 and is expected to finish later this year.

During a routine conductor removal programme, a drill crew would pull all the casing strings and conductor once a well has been successfully abandoned. For Dunlin Alpha, however, many of the conductors, due to the excessive span between topsides and the -10 m guide frame, and poor performance of 1st generation conductor connectors, have been repaired over the years by temporary braces, clamps, and grouted-sleeves; installed by the previous operator to extend the asset’s operational life.

Seven potential solutions were taken through a series of decision gates before the team decided on a hybrid – one that enabled operations to begin in just nine months. Without over-engineering, it was a fit-for-market solution for Dunlin Alpha’s challenges.

The combination of new and proven technologies enabled the project team to reduce the overall campaign schedule by a year, also delivering major cost savings, with the following innovations among those contributing to this result: The AquaTerra supplied ‘QuikDeck’ system was utilised to access the conductors from underneath the platform. This system was able to be installed and deconstructed in less than half the time of traditional scaffolding, significantly optimising operations. Further, due to the ability to raise and lower the deck as required, Fairfield was able to navigate the time constraints typically posed by weather conditions in the North Sea, allowing operations to extend into the late autumn, compared to just the summer months with a more traditional scaffold and rope access method. Nets were suspended below the connectors, catching loose grout and preventing it from falling – thereby improving safety and environmental parameters.

The significant quantity of clamps and braces that had to be removed would have resulted several summer seasons being required for the drilling package to recover the conductors. Instead, WellGear’s Rigless Intervention System (RIS) was installed to enable the pulling of conductors with clamps in parallel with the P&A activity.

This continual use of a pulling unit, without interfering with the drilling package well programme, removed conductors from tbe critical path and optimised the schedule.

The integration of the WellGear and Fairfield teams, both on and offshore, led to a more cohesive approach.

A temporary marine crane from Brimmond Group was mobilised to support the WellGear RIS unit and supplement the existing platform craneage. This enabled Dunlin Alpha’s main crane to focus support on Rig P&A work with the RIS unit following behind to remove the casing and conductors, further optimising the execution schedule.

Despite schedule changes stemming from COVID-19, 29 conductors (as of 5 May 2021) out of a total 45 have now been pulled

Wintershall Dea awards North Sea drilling contract to Saipem The contract includes options to drill additional Wintershall-operated wells. Work is planned to commence in the fourth quarter of this year.

The order follows the termination of the contract with Northern Ocean for the West Mira semi-submersible drilling rig in May 2021.

The termination was due to the extended downtime period of the rig as a result of equipment failure in March 2021 on the Nova field.

Owned by Northern Drilling’s spin-off company Northern Ocean, the West Mira drilling rig is managed by Seadrill.

Saipem has secured a contract from Wintershall Dea Norge, a Norwegian subsidiary of the Wintershall DEA, for drilling campaign in the Norwegian sector of the North Sea. The Italian oilfield services company will deliver the Scarabeo 8 semi-submersible rig to drill six wells at the Nova field located in the production licences PL 418.

With the latest contract, Wintershall Dea Norge intends to finalise the drilling campaign at the Nova field.

Wintershall Norge operates the Nova field with a 35% stake. Other partners include Capricorn Norge, a part of Cairn Energy, (20%), Spirit Energy (20%), Edison Norge (15%) and DEA Norge (10%).

According to the estimates, the Nova field contains recoverable reserves of approximately 80 million metric barrels of oil-equivalent (Mmboe).

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Offshore Energy Services Dashboard May / June 2021 available from

STATS & ANALYTICS PROVIDED BY

SubseaLogix

Westwood Global Energy Group

SubseaLogix PlatformLogix

PlatformLogix

Offshore O&G EPC Awards $billions 80

Expected

70

Sanctione d

60 50

Westwood Global Energy Group are specialist providers of detailed market intelligence for the offshore energy sector, covering; offshore rigs, production facilities, subsea equipment, subsea services, offshore marine and offshore renewables and power.

40 30

www.westwoodenergy.com

20 10

Field Development Update

www.ogv.energy I July 2021

2021

113

59

2020

37

15 Sanctioned Firm Probable Possible

187

FPS Throughput Additions by Year of Sanction kpoepd 2,500

LNG Gas Liquids

2,000 1,500 1,000 500 -

2018

2019

2020

2021

2022

Offshore O&G EPC Awards 2021-25 by E&P $billions to be awarded

35.0

30.2

er s

s

5.9

O th

7.6

ne rg ie

7.6

m co

7.8

lE

8.0

ra

8.8

To ta

9.7

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15.9

di A

16.1

CN O

In the offshore wind sector, we have seen 378 turbines awarded to date (excluding Mainland China). June’s highlight was the announcement of Financial Close at Parkwind’s 257MW Arcadis Ost development offshore Germany. The project will feature 27 Vestas V174-9.5MW turbines which will be installed by Heerema Marine Contractors who will utilise a floating heavy lift vessel. This is the first time such an asset has been used for the installation of turbines for a commercial scale windfarm.

A further 1,585 turbines are expected to be awarded over 202122 (excluding Mainland China). 55% of this will be accounted for by Western Europe including projects such as Equinor/ SSE’s 1,200MW Dogger Bank C and Scottish Power Renewables 3,100MW East Anglia One North, Two & Three.

2022

#XTs

Sa u

Offshore Wind Update

2021

Ch ev ro Ex n xo n Q M at ob ar il Pe tr ol eu m

Offshore rig counts increased by 3.3 units in May with this growth split between semisubs and drillships, whilst total utilisation edged up to 63.4%. Effective drillship utilisation increased to 74% in May, a month-on-month increase of 4%, but still trails the jackup segment with 78%. Total MODU backlogs (booked rig days) as of June 1 increased by 0.5% relative to a month earlier.

2020

Subsea Tree Awards

Sh el l

Offshore Rig Update

2019

Westwood’s 2021-22 outlook assumes a $60/bbl Brent oil price

as W oo ds id e Eq ui no r

A further $26.4 billion of EPC investment is expected over the course of 2021. Key awards to watch include FPSO’s for Petrobras’ Mero 4 (Brazil) and Woodside’s Scarborough (Australia) developments. 2022 offshore EPC investment is estimated at $67.7 billion which would be an increase of 23% versus or current 2021 expectation.

2018

ob r

In other field development related news, North Oil Company (NOC), a JV of TotalEnergies and Qatar Petroleum is reported to have issued multiple letters of intent (LOI) for several engineering, procurement and construction (EPC) packages for its Al-Shaheen (Gallaf) phase 3 project. Shell is also understood to be progressing with its long-delayed Bonga South WestAparo (BWSA) development offshore Nigeria, with the Dutch supermajor moving to the FPSO bid evaluation phase.

-

Pe tr

So far in 2021 (year to date) we have seen $28.4 billion of EPC investment. The key highlight for June is the sanctioning of Equinor’s long-awaited Bacalhau development offshore Brazil.

Equinor expects the development to have a breakeven of less than $35 per barrel and an expected lifetime average CO2 intensity of less than 9kg per barrel produced compared to Petrobras’ average production target of 15kg per barrel of oil equivalent by 2025.

Offshore Energy Services Dashboard May / June 2021 Westwood

43

Global Energy Group

available from

RigLogix

Month on Month Backlog (June 1 vs May 1)

May Rig Counts Jackups

Jackups

24

111

Semisubs

334

Drillships

24

54

19

498

97

Semisubs

24

67

27

RigLogix

June 1

June 1

June 1

221,412

31,391

72,347

96

Drillships

60

54

19

Contracted

Available

Stacked

May 1

May 1

May 1

216,788

33,182

73,216

Regional Month on Month Rig Counts (May vs April)

1.8

1.4

0.8

0.3

0.5

Arab Gulf

Latin America

NW Europe

Arab G ulf

Global

-0.7 Latin America

NW Europe

Global

Arab G ulf

Latin America

SE Asia

US GOM

Global

NW Europe

-0.4

-0.6

SE Asia

-0.3

US GOM

0.1

SE Asia

0.7

US GOM

0.7

Global Rig Utilisation 75%

80% 75% 70% 65% 60% 55% 50% 45% 40%

70%

80%

65%

75%

60%

70%

55% 50%

65%

45%

Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-20 Sep-20 Nov-20 Jan-21 Mar-21 May-21

Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-20 Sep-20 Nov-20 Jan-21 Mar-21 May-21

40%

60%

Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-20 Sep-20 Nov-20 Jan-21 Mar-21 May-21

85%

available from

WindLogix

WindLogix

Offshore WTG Awards by Status (exc. Mainland China) #WTGs 1,400 1,200

Expected Awarded

General Electric (GE) 14%

1,000

Goldwind 3%

Others 3%

Asia 24%

800

Awarded by OEM

600 400

Vestas 26%

200 2018

2019

2020

2021

2022

Siemens Gamesa 54%

Western Europe 55%

Expected by Reigion North America 21%

44

PEOPLE IN ENERGY

PEOPLE IN ENERGY SPONSORED BY

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.

What has been the highlight of your career so far?

I’ve had an incredibly diverse career, working in various functions from economics to Supply Chain Management and client engagement. The highlight of my career so far has been flying to Equinors’ Mariner platform with an all-female flight crew as part of the International Women’s Day 2019 celebrations. After a short time working for CHC Helicopters, I had grown accustomed to seeing incredible women working as pilots, engineers, operations control and ground operations staff. IWD’19 was an excellent opportunity to inspire young girls to consider a career in the energy sector.

What ambitions have you still got to fulfil professionally in your career?

MAVIS

ANAGBOSO

I launched my business during the 2020 lockdown and since then, I’ve spoken at various online events to audiences numbering over two thousand in one case. After lockdown, I would like to go on the speaking circuit and speak at live events.

Director TOJU Consulting

Background: Following a twenty-year career in the UK

public sector and energy sector, Mavis Anagboso set up a Diversity Consultancy in the Northeast of Scotland to help businesses in the energy sector build more inclusive work cultures.

How did you get into the Energy sector and how long have you been working in it?

I was born in a little Shell clinic in Warri, Nigeria, so you can say I’ve always been in the energy sector. My dad is a Drilling Engineer, and for years, oil & gas was all I knew as far as career prospects are concerned. Then, in my Uni days, I had my summer placement in Shell, which sparked a lifelong interest in the energy sector.

What does your job involve on an average day?

An average day usually involves coaching one or two clients and speaking to energy companies about Equity, Diversity, and Inclusion. On the other hand, my conversations could be with employees or business leaders keen to create a more inclusive work culture.

1. Christine Lagarde (President of the European Central Bank) – I love that she has successfully ran the European Central Bank since 2019 while looking incredibly stylish.

2. Lin-Manuel Miranda (creator of the Broadway hit musical, Hamilton) – I’m

an amateur stage performer and would love to speak to the genius behind my favourite musical. Besides, it would be a cracking party as we would not be short of tunes and perfectly choreographed moves.

3. Chimamanda Ngozi Adichie (Author of Half of a yellow sun) – I love books. I’ve written like 50 books (in my head), so I have great admiration for Ngozi because she writes beautifully and makes me proud of my Nigerian heritage.

Who has been the most influential person in your life professionally?

I’ve had several managers over the years, but one that stands out particularly is Howard Beames, former UK Base Manager of CHC Helicopters. He was my manager a few years back, and he had quite a refreshing management style which allowed me room to grow and thrive.

Over the next 10 years, what changes would you like to see in the energy sector with respect to D&I?

"I would like to see business leaders truly embrace equity, diversity, and inclusion in the workplace."

How have you coped personally and as a company with the pandemic?

My company is a product of the pandemic, and TOJU Consulting was forged in very dynamic circumstances. I set up my company after my role was made redundant at the height of the pandemic. Like most parents, I found juggling home schooling and working initially tricky. However, I quickly found a routine that worked for my family and used the opportunity to set up a company that can help individuals and businesses reach their potential.

www.ogv.energy I July 2021

If you were inviting guests to a dinner party, which 3 people would you invite and why?

I would like to see business leaders truly embrace equity, diversity, and inclusion in the workplace. There are currently a lot of D&I initiatives across the industry. These look good on paper but are predominantly only as valuable as the paper it’s written on. Action speaks louder than words, so I would like to see more diverse corporate boards. I would like to see leaders creating safe spaces for their employees to speak more freely about what inclusion looks like. I would like to see a more equitable recruitment system based on merit and not who you know. Shockingly, there is still a significant gender and ethnicity pay gap, and I would like to see that eliminated. Lastly, I would like to see leaders get more comfortable with vulnerability.

Given the experience you have now, what advice would you have given yourself when you were just starting out in the Energy sector?

Find out who the influencers are in your sector and get into that circle. Also, do not be afraid to pivot into a new function, even if you know nothing about it!

PEOPLE IN ENERGY sponsored by

COMMUNITY PARTNER Zoe Ogilvie, first woman appointed to the Board of Directors of Aberdeen Football Club.

45

“She is committed to helping drive and successfully deliver our fan and corporate engagement programmes, being a welcoming host on match days and an active ambassador for the Club in the wider community.”

A highly regarded public relations practitioner in Scotland, Zoe has almost 30 years’ communications and marketing experience in the UK and abroad, including eight years with Aberdeen & Grampian Chamber of Commerce as public affairs manager before setting up BIG Partnership.

As director of BIG, now one of the UK’s largest PR and marketing agencies outwith London, Zoe heads up the Aberdeen office which represents clients in the energy, property, professional services and food and drink sectors.

She is also on the Board of Governors of the Robert Gordon University and the Board of Directors of Aberdeen Inspired.

First Woman Appointed to the Board of Aberdeen Football Club

Zoe Ogilvie will join the Board of Directors of Aberdeen Football Club this month, becoming the first female director in the club’s 118-year history.

The Aberdeen businesswoman has been appointed as a non-executive director with a focus on marketing and communications strategy as the Club ramps up its fan engagement and community programmes, which are critical to growing its season ticket membership base.

AFC Chairman, Dave Cormack, said: “Zoe is incredibly well-connected and brings significant credibility across both the public and private sectors. She has been instrumental in setting and delivering our communications strategy in the last 18 months and has played a pivotal role in successful Club and Trust campaigns.

Zoe is married with one daughter, Francesca, who plays for AFC Women and was a Scotland U-19 internationalist.

Commenting on her appointment, Zoe said: “It’s a privilege to be making history as AFC’s first female director and an honour to serve a Club which is a vital part of the region’s socio-economic fabric and is cherished by so many people.

“Having worked with the Club on various projects for many years, I’ve gained invaluable experience of its operations and the dedicated people who work there. I’m thrilled to join the Board but do not underestimate the challenges we face nor the responsibility that comes with the role."

46

LEGAL & FINANCE

EXPERT DETERMINATION UNDER A DECOMMISSIONING SECURITY AGREEMENT

By Iain Rutherford, partner, litigation and Rhona McFarlane, partner, oil and gas, Brodies LLP

Thanks to the OGA and the large volume of assets that have changed hands in recent years, field-wide Decommissioning Security Agreements (DSAs) are now far more common than they were five to ten years ago and most will be familiar with the industry standard model form DSA.

It was introduced by Oil and Gas UK in 2009 and, save for changes to allow for the post-tax provision of security following the introduction of Decommissioning Relief Deeds in 2013, has remained largely unchanged. The last update was in 2015.

The DSA has now been negotiated extensively and administered and worked by operators for many years with annual calculations being performed so it is inevitable that differences of opinion on models, methods and interpretation will arise out of that process.

Different methods or interpretations can have quite an impact on the Provision Amount and the timing of first provision of security.

For example, production profiles are used to ascertain the Net Value of a field so if the dispute relates to which set of profiles should be used, it is easy to see why the outcome of that dispute will impact upon the level of security and therefore timings.

This is becoming a bigger issue as whilst decommissioning is still in its infancy in the UKCS, more decommissioning programmes are being submitted for approval as an increasing number of fields near COP. This inevitably means large sums of money are also being provided as security under some UKCS DSAs - even more reason for the DSA parties to challenge the operator's calculations.

BRENT vs WTI 1 YEAR

www.ogv.energy I July 2021

But how best to frame or defend that challenge?

Here are our top tips:

1. Notice The timings (60 days) and form (recorded post or fax) of notice to object under a DSA are tight and prescriptive so check the relevant notice provisions carefully. If a valid objection to a decommissioning schedule and budget hasn't been issued, the right to refer to expert will be lost.

2. Reach agreement on expert Whilst this may not always be possible, it is clearly preferable if parties can agree the identity of the expert. Even if a specific expert cannot be agreed, genuine attempts should be made to identify at least the type of expert (lawyer, accountant, technical etc). Remember, there is scope in the DSA for the expert to seek additional advice from a different type of expert. That provision can be used to break deadlock situations.

3. Review appointing body The current draft DSA provides for the President of the Energy Institute to appoint an expert if the parties have been unable to do so themselves.

Unfortunately, the Energy Institute no longer provides this service, so this should be amended to a body which will do so (e.g. CEDR, ICC, LCIA).

WTI 1 MONTH

4. Build in time for reply The expert will generally seek to agree a timetable with the parties and they will often suggest only one round of submissions. Given the time for discussion around objections can be quite limited, we would strongly recommend building in a reply phase since this may be a party's only opportunity to address the other side's fully articulated arguments.

5. Remember there is limited scope for challenge The expert determination process is designed to resolve disputes quickly and finally so time should be taken to make the submissions as strong as possible and work should be started on these in advance of expert appointment if at all possible.

If the outcome of the determination is not what was expected though, there is some scope for judicial challenge with the most common grounds being failure to follow instructions and manifest error. Whilst manifest error sets a very high bar (effectively an obvious error) there can be more scope for challenge in relation to a failure to follow instructions - this can, in certain circumstances, open the door to a challenge that the expert did not apply the terms of the DSA properly (i.e. a legal challenge based on interpretation of the DSA).

BRENT 1 MONTH

47

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