OGV Energy - Issue 61 - October 2022 - Decommissioning

Welcome to the October edition of ‘OGV Energy Magazine’, where this month our theme is on ‘Decommissioning’, at a time when opportunities in the sector seem to be growing at pace.

This month we are delighted to welcome Stena Wells as our front cover partner and you can read all about how the launch of their new start-up company will provide a fully managed well construction and decommissioning service to the global operating community inside.

We also have contributions from Decom North Sea, the North Sea Transition Authority, Cesscon Decom, Asco Group, Brimmond Group, Proserv, Ashtead Technology, Norwell Engineering, Zync360 and Sword Group.

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 and Australasia along with industry analysis and project updates from Westwood Global Energy Group, the EIC and Renewables UK.

As we gear up for ADIPEC at the end of the month, please take a look at our event page if you are going as we would be delighted to welcome you to the golf day, business breakfast and drinks evening!

Have a great month and we hope to see you there!

KENNY DOOLEY MAIN EDITOR

Stena Wells look at the future –Decommissioning versus EPL

Where does the focus lie when two government policies conflict?

As the industry recovers from price wars and pandemics, there is promise of light at the end of the tunnel. Finally, there is a feeling of inertia building for decommissioning operators with cash flow sufficient to commence large-scale projects.

There is, however, an opportunity for the industry to claw back a significant portion of the EPL through an investment allowance for future investment within a three-year window.

In short, those paying the Energy Profit Levy can reclaim up to 91 pence on the pound.

Source EPL factsheet

This is where the potential conflict begins:

Has big Decomm arrived?

In a world of ever-changing forces, inflation, and the requirement for energy security, the UK government chose to react by implementing the Energy Profit Levy or EPL.

The EPL came into law in late May 2022 – in effect, an additional 25% tax on UK oil and gas profits on top of the existing 40% headline rate of tax, this takes the combined rate of tax on the profits to 65%.

Source – Commons Library Parliament UK

The introduction of the levy potentially creates two competing policies; the first of these being the appetite to reinvest and recover the above-mentioned EPL, the second being driven by the regulatory bodies to expedite well decommissioning.

At a recent Well Decommissioning event, there was genuine surprise at the sheer number of wells being brought forward by operators for near-term decommissioning.

This raises a question – and in some way an assumption – where will operators focus near term? The assumption being a finite resource pool cannot accommodate both work scopes in full.

Safe, predictable & cost effective operations

In this case where there is a drive to undertake both drilling and decommissioning activities, there is one company is preparing to meet both demands.

With the Plug and Abandonment (P&A) schedules of many operators reading unchanged from their commitments precovid, it is no surprise there is a significant pressure to liquidate the work near term.

Stena Wells has been created to accommodate and cater for this situation. The company was launched in mid-2022 with the following remit.

Stena Wells will provide safe, predictable, and cost-effective solutions for Well Construction and Well Decommissioning.

Stena Spey

The company aims to combine the capability of the Stena Drilling assets with an experienced capable engineering and execution team.

Stena Wells is led Led by Dillan Perras, an industry expert in UKCS well operations and decommissioning, a previous co-chair, and a current sitting member of the OEUK guidelines workgroup.

When asked about the current EPL policy and the potential effects on the decommissioning sector, Dillan said, “The summer of 2022 will be a turning point for many of the operators in the UKCS, the full effect of this has yet to been seen” – adding, “We are in the middle of what is typically the operators budget season – operators will be finalising and setting their 2023 budgets. This change in policy may significantly change their near-term strategies.”

“Companies may look to the current resource pool of rigs in the UK and realise there is a significant crunch point coming, the market has moved significantly with many rigs contracted – the ability to reclaim EPL could be resource constrained’.

Stena Wells aim to offer premium summer drilling opportunities alongside ‘cost surety’ for decommissioning activities. By creating strategic partnerships and aligning commercial objectives, the team will be in position to deliver on our client’s requirements.

“We believe this to be unique in the market –an adaptable solution for an ever-changing environment.”

Driving safe, cost-effective operations in Well Construction and Well Decommissioning. Stena Wells is the strategic partner of choice. www.stenawells.com

Earlier in the summer Controlled Flow Excavation (CFE) and Suspended Jet Trenching market leader, Rotech Subsea, wrapped up a four month cable de-burial and re-burial campaign at an offshore wind farm off France’s Atlantic coast. Contracted by a global submarine cable system giant, which had retained the Aberdeen-based subsea trenching and excavation specialist on a similar scope of work in November 2021, Rotech Subsea’s RS2 CFE equipment spread carried out cable de-burial and re-burial on omega joints and cable ends at the Saint-Nazaire OWF off the Guérande peninsula.

Baker Hughes, Mocean Energy and Verlume have signed a triparty memorandum of understanding (MoU) to identify and discuss potential opportunities for collaboration on integrated wave energy and subsea energy storage solutions for the emerging subsea clean energy market.

In the drive towards lower carbon operations, the MoU will explore the opportunities for integrated wave energy, energy storage and power delivery

solutions to facilitate the electrification of subsea assets as well as the utilisation of renewable energy within harsh, deep-sea environments.

Over an initial two-year period, the MoU will see the three parties utilise and share their combined capabilities within the subsea market to enable the deployment of a reliable, uninterrupted power supply located at point of use for cost-effective and market-competitive electrical power solutions. This could be within temporary, permanent or back-up use cases, including for charging systems for underwater vehicles and subsea production control systems.

Within the scope of the MoU, Baker Hughes will bring its expertise as a leader in the design and manufacture of subsea production equipment, by supplying subsea hardware including controls systems, power systems and other ancillary equipment. Verlume’s scope of supply will focus on the design and delivery of its Halo subsea energy storage system and Mocean Energy will be concentrated on the design and delivery of its Blue Star wave energy converters.

Opening Up Down Under - Torque Specialist Marks Milestone

Aberdeen-headquartered problem-solving company, STC INSISO, has announced an extension to its contract with one of the largest port groups in the UK, Peel Ports. The extension follows the successful completion of the original scope of work which included health and safety health checks of all of Peel Ports’ container terminals in the UK. The contract extension, bringing the overall value to £200k, will see the scope of work expanded to include health checks of all of Peel Ports’ non-container ports within the UK.

An Aberdeen-based torque machine specialist has reached a significant milestone in its ambitious growth journey by announcing the opening of a new office in Australia. EnerQuip Ltd, which is based at Findon on the outskirts of the city, has created EnerQuip Torque Solutions PTY Ltd. to better serve a growing client base in the APAC region with Craig Jackson to make the move from Scotland to head up operations on the ground, on a permanent basis. The move follows hot on the heels of a recent major portfolio expansion thanks to the acquisition of the AMC product line from Forum Energy Technologies.

Nucore Group, a Scottish-based specialist engineering company which provides safety products and services for hazardous environments, is continuing its major expansion programme as it prepares to open two new offices to service rapid business growth across England and Wales. The company, which is headquartered in Aberdeen, has appointed industry veteran Joe Oberlé to the key role of sales director, with responsibility for building the company’s business across the UK, and leading its diversification into new sectors.

Rovco, an experienced global provider of subsea robotics and hydrographic survey solutions to the marine renewable and wider energy sectors, has its sights set on supporting the energy transition in the US market with the strategic appointment of Mitchell (Mitch) Johnson as the company’s new Director – Americas. Mitch joins Rovco at an exciting time as the company seeks to expand its international offering, bringing operational excellence, learning and expertise from its extensive portfolio of offshore wind projects across the UK and Europe.

Salus Technical, has today (8 September) launched an online, on-demand training course which covers the fundamentals of managing process safety in high-hazard industries. With reports from over two thirds of managers in the energy industries that safety training was cancelled or postponed during the COVID-19 pandemic, the course has been designed to upskill personnel with vital knowledge and understanding in a convenient and timeefficient format.

Rovco enters US market with strategic appointment

Tripartite subsea energy MoU signed between Baker Hughes, Mocean Energy and Verlume

FIND ALL THE FULL COMMUNITY NEWS ARTICLES ON OGV ENERGY'S WEBSITE

Salus Technical launches process safety training course to address pandemic backlog

DO YOU WANT YOUR NEWS FEATURED ON OUR MAGAZINE, WEBSITE & DIGITAL PLATFORMS? JOIN THE OGV COMMUNITY TODAY!

STC INSISO secures six-figure contract extension with Peel Ports

Nucore continues expansion plans with two new offices in England

Rotech Subsea returns to Saint-Nazaire OWF for global submarine cable player and clinches new USA contract

At our core, we are a software engineering technology company. We bring together highly experienced industry engineers combined with leading software developers to drive real and positive change within the energy sector.

www.assetfiftyfive.com

Better results from your recruitment advertising. We're a media buying agency, helping recruiters reach candidates faster and more effectively. Programmatic advertising, performance management, tracking and reporting. It's all here. www.talentnexus.com

We are a SaaS Organisation providing NCSC certified Cyber & Information Security, and Data Protection training through our digital platform. We enable organisations to reduce risk, improve cyber resilience and demonstrate compliance in the digital age.

ospcyberacademy.com

Innovative, industrialized approach to deliver low cost, low environmental impact and high local content floating offshore wind developments and mooring & anchoring foundations.

offshoresolutionsgroup.com

Oilenco design, engineer and manufacture specialised tooling to support the global oil and gas industry. Our diverse range of well intervention tools reduce the time and cost of your operations.

www.oilenco.com

Human Factors training started in earnest in aviation - an industry with an excellent performance in safety compared to other high-risk industries.

www.humanfactormatters.com

Since 1889 Dräger products protect, support and save lives. German Engineering since 1889. Dedicated to saving lives with innovation and reliability. German Engineering. Reliable. www.draeger.com

Enerquip is the first choice partner for Torque Machines and Associated Products. We utilise our years of experience to support client operations to ensure their Torque Machines and Bucking Units are always running to their full potential.

www.enerquiptorque.com

The World's Smallest, Lightest, Most Affordable Nodes - Stryde High-density land seismic, for any industry

www.strydefurther.com

Unity is leading provider of well integrity solutions to the global upstream oil and gas industry. We are experts in ensuring asset longevity.

www.unitywell.com

Our unrivalled experience and innovative multisector solutions safely and reliably improve asset management and performance, delivering fully integrated projects. We make it our mission to provide solutions that enable you to visualise projects from beginning to end, from the big picture, down to the smallest detail www.zynq360.com

Consortiq provides precision data acquision & management solutions globally, through drone services & digital asset modeling, for organizations who need precise data quickly, and with minimal job site disruption. We’re not afraid to fly in high-traffic areas or over crowded skies because our clients deserve the best! www.consortiq.com

energyresourcing.com +44 1224 291176

PEOPLE IN ENERGY

Energy Resourcing is a global technical recruitment agency. We’re passionate about matching high-quality candidates to the clients that need them. With offices in Australia, Asia, Europe and North America, we provide personalised customer experience through our dedicated support teams, day or night!

Our team of proactive recruitment professionals are experts in what they do. We specialise in providing robust workforce solutions and placing talent in typically hard to fill roles. So, whether you’re looking for your next job opportunity or need to hire technical talent to drive your next project, Energy Resourcing is here to help.

What are main challenges for the Oil & Gas Decommissioning sector at present and how can they be addressed?

At EnQuest, our licence to operate is based on trust that we do the right thing and remove or get the right permissions to leave the infrastructure that was put in place by ourselves or other operators to produce Oil and Gas over the years. The biggest challenge I find is managing the drive to make decommissioning cost efficient whilst performing the work safely and making the right considerations to protect the environment. This can bring many conflicts along the way that have to be carefully managed.

We have to be deeply aware of the regulatory constraints and work with all our stakeholders to devise the right decommissioning programmes to suit individual assets and their particular situations. This can be complex, detailed work.

WILL BLACK

Decommissioning Project Manager EnQuest

I am a chartered project professional with over 23 years’ experience working in the Oil and Gas sector,15 of those in Major Capital Projects. I have managed projects for over 10 years and transferred these skills into the decommissioning sector in 2014. I now work in the Decommissioning Directorate within EnQuest where we take mature assets to the end of their productive life and decommission them in a safe, efficient and environmentally responsible manner. Thinking this was going to be a short assignment before returning to Capital Projects I have never looked back. The challenge of decommissioning offshore installations in this sector is just too big to be drawn away from.

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

I began my Career in Oil and Gas as a Software Engineer for a Subsea Control company called Kvaerner. Starting in 1998 I was quickly involved with designing and installing patches to prevent the millennium bug halting production in the North Sea. I have now been working in the Energy Sector for 23 years.

What does your job involve on an average day?

As a Project Manager for a major decommissioning project in the North Sea my job varies so much. No two days are the same. I carry out a range of work to ensure the project is staying on track, this includes engaging with partners and external stakeholders, attending pre-mobilisation visits to vessels and visiting the offshore installation to meet with the workers at the sharp end.

What are main barriers to international growth for ambitious companies and what advice do you have for them?

EnQuest has interests in the UK and Malaysia, but our decommissioning programme is currently focused on the UK with four assets in decommissioning. We are however looking to build EnQuest as a decommissioning business which could have global reach. We also see that option within the organisation helps support the UK though the Energy Transition.

What has been the highlight of your career so far?

Without doubt the recognition I received within my profession when I received my Project Professional Chartership was a great moment in my career. I felt that the Project Management Profession was not properly recognised as a skill. For too long there was an expectation that an engineer would develop through their career and natural progression would be a Project Management role. It really is a different skillset and this is better recognised across industries. I always say I was a pretty good engineer but I’m a great Project Manager!

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

I am finding now that, although I still enjoy the Project Management side where I have to pull a team together towards a common goal, I do think more about the next challenge. I do enjoy creating and energising my teams but what I would really like to do is create something different and unique. I would like to find a new and exciting way to deliver decommissioning across the UK and one area where I am involved in the early stages is an initiative called Subsea Decommissioning Collaboration. This could revolutionise the way Subsea Decommissioning is approached, moving to a more industrialised approach and saving both operators and the British taxpayer millions of pounds.

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

For work I have had many people influence my careers from MDs to line managers to graduates and my project engineers. I have discovered that I like to learn by watching people. For me, this is so much easier than reading a book or attending a training course. From a non-work perspective, the most influential celebrity I admire is Tiger Woods. His work ethic, focus and ability to adapt to a situation is incredible. I also think over the past few years we are now also beginning to see his influence in the locker room with the rest of the golfers. These attributes are all key to a successful career.

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

In a decade’s time I would like to see D&I so embedded in our culture that it becomes the norm. However, I know that this is a monumental change for people who have been conditioned with certain biases established at an early age. I challenge myself often on my unconscious bias when making choices. In 10 years, the landscape will definitely include more females, people from diverse ethnicities and career backgrounds and I want to ensure that all people are given an equal chance to succeed.

Given the experience you have now, what advice would you give a graduate just starting his career in the Energy sector?

Work hard, actively listen and don’t be scared to fail. I think a good work ethic is so important to success and it is so visible. It is a way to demonstrate commitment to succeed. But to succeed you must listen and act upon what you are being told. Feedback is the greatest gift you will be given in your career.

Finally, go for it. If you fail at something, think about it as a learning opportunity and pick yourself up and go again.

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

I would like to invite my grandparents, three of which are now dead. Family is very important to me and looking back on my time with them I was very focused on just me while I was growing up. When I then had my own family you get caught up in your own life. It would be great to have the opportunity to learn more about their lives and discovering our similarities across the generations.

I would also like to invite Alex Ferguson. When it comes to leadership his name often comes up. The main attribute I admire about Alex is sustainability. He created a product that never stood still. He had to reinvent the team many times over to ensure success. He created an amazing team spirit that gave them a strong foundation for success.

SPONSORED BY Recruitment experts, placing top technical talent around the globe, with workforce solutions tailored to you

The new government’s strategy to increase domestic energy production and support households and businesses, the annual economic report for the UK offshore energy, and field development updates were the highlights of the UK North Sea oil and gas sector this past month.

UK NORTH SEA Energy Review

By Tsvetana Paraskova

The new UK government is taking the next steps to boost domestic energy production, including by lifting the 2019 moratorium on fracking in England and pursuing the award of more than 100 new oil and gas licences in the North Sea in a new licensing round.

The licensing round is expected to lead to over 100 new licences, forming part of the government’s plans to accelerate domestic energy supply. Under the new licensing round, which follows the outcome of the Climate Compatibility Checkpoint, the North Sea Transition Authority (NSTA) is expected to make a number of new ‘blocks’ of the UK Continental Shelf available, for applicants to bid for licences. The government also formally lifted on 22 September the pause on shale gas extraction and will consider future applications for Hydraulic Fracturing Consent with the domestic and global need for gas in mind and where there is local support.

The British Geological Survey’s scientific review into shale gas extraction found that the UK had limited current understanding of UK geology and onshore shale resources, and the challenges of modelling geological activity in relatively complex geology sometimes found in UK shale locations.

“Lifting the pause on shale gas extraction will enable drilling to gather this further data, building an understanding of UK shale gas resources and how we can safely carry out shale gas extraction in the UK where there is local support,” the government said.

The UK is also doubling down on scaling up renewables, nuclear, and lower-carbon energy sources.

“In light of Putin’s illegal invasion of Ukraine and weaponisation of energy, strengthening our energy security is an absolute priority, and – as the Prime Minister said – we are going to ensure the UK is a net energy exporter by 2040,” Business and Energy Secretary Jacob Rees-Mogg said in a statement.

Continues >

UK NORTH SEA REVIEW

US AT

office@ogvenergy.co.uk

Jacob Rees-Mogg

Cuadrilla Resources—the company operating Britain’s only two shale gas wells in Lancashire, which had to stop drilling after the government announced the moratorium in 2019 – welcomed the formal lifting of the ban.

“Communities across the North of England stand to benefit most from today’s announcement. Cuadrilla is determined that a portion of all shale gas revenue should be delivered to local residents as a community dividend,” Cuadrilla’s CEO Francis Egan said.

Commenting on the lifting of the shale gas moratorium, Wood Mackenzie analysts said:

“While there are very few details on the UK’s net export plan, we believe shale gas faces too many political, technical, economic and funding headwinds to make a material impact this decade.”

“Even if drilling were to start straight away, 2023 volumes would be negligible relative to immediate energy issues. With only a handful of wells drilled to date, the exploration and appraisal process could easily run into the latter half of the decade,” WoodMac noted.

Offshore Energies UK, the leading offshore industry body, published in early September its ‘Economic Report 2022: A focus on UK energy security’, which urged the UK’s new government to accelerate investment in North Sea gas, oil, and wind – and reform power markets to ensure fair tariffs.

The report praised the UK offshore industry’s response to the energy crisis as it has boosted offshore domestic gas production by 27 percent since January.

The report also cited data from the North Sea Transition Authority, suggesting that the UK continental shelf still contains gas and oil equivalent to about 15 billion barrels of oil. The UK’s total energy consumption equates to about a billion barrels of oil a year so these reserves could support UK energy security for decades to come, with the right investment, OEUK says in the report.

“As we have learned over the last year, energy is a precious resource which must be properly managed, in the short and long term. Our sector has many of the answers and through constructive work with governments and regulators, we can boost the UK economy, cut emissions, secure jobs and most important, heat and power homes and industries with energy produced here, for decades to come,” OEUK said.

“In practical terms we need the new government to rapidly announce the next round of oil and gas exploration licenses and speed up production approvals,” OEUK’s acting CEO Mike Tholen said in a statement.

“We are also encouraging the UK government’s focus on tariff reform. Right now, our energy markets are being controlled by President Putin who is driving up the price of gas to break ours and Europe’s resolve over Ukraine. We cannot let that continue. We need to move away from a system that allows the price of gas to control the cost of electricity,” Tholen added.

The North Sea Transition Authority has granted the required approvals and consents to Centrica Offshore UK Limited (COUK), for Phase 1 of the Rough gas storage site off the East Coast of England in the Southern North Sea. Centrica has now received all of the required NSTA regulatory approvals to commence gas storage operations.

The NSTA published on 21 September its latest Emissions Monitoring Report, which showed that North Sea greenhouse gas emissions were cut by an estimated 14.6 percent to 14.3 million tonnes of CO2e last year, adding up to an overall reduction of 21.5 percent since 2018.

Thus, the North Sea oil and gas industry is on track to meet early emissions reduction targets after posting cuts of more than a fifth between 2018 and 2021, according to NSTA’s analysis.

NSTA projections indicate the sector is on track to meet interim emissions reduction targets –of 10 percent by 2025 and 25 percent by 2027 – which were agreed in the North Sea Transition Deal (NSTD) between the sector and the UK government in 2021.

“However, bold measures will be needed to hit the 2030 goal of halving emissions.

Upgrading platforms to run on clean electricity, instead of gas or diesel, is essential – the NSTD will not be delivered without it. At least two electrification projects should be commissioned by 2027,” NSTA said.

In company news

TechnipFMC was awarded a significant subsea engineering, procurement, construction and installation (EPCI) contract by Shell for the Jackdaw development in the North Sea. For TechnipFMC, a “significant” contract is between $75 million and $250 million. The contract covers pipelay for a 30-kilometre tieback from the new Jackdaw platform to Shell’s Shearwater platform, as well as an associated riser, spoolpieces, subsea structures, and umbilicals.

Allseas has been awarded a major decommissioning contract by TAQA UK for the removal and disposal of multiple Northern North Sea (NNS) facilities. The combined weight of the topsides and jackets to be removed is around 114,000 tonnes, making this the single largest offshore UK Continental Shelf decommissioning contract scope to date, Allseas said.

Kistos said in its latest corporate outlook that it expected GLA development and exploration programmes to commence imminently, utilising the investment allowance under the terms of the UK Energy Profits Levy. In addition, the Glendronach development is on track to be sanctioned by the end of this year, with production anticipated to begin by the end of 2024. Kistos is also preparing to drill the 638 Bcf Benriach gas prospect in 2023.

EnQuest is assessing the potential to use its existing infrastructure and subsea projects expertise to facilitate the electrification of nearby offshore oil and gas assets and planned developments by way of a grid connection supplemented with renewable power, the company said in early September.

“Through our Infrastructure and New Energy business, we intend to repurpose and utilise existing assets to progress new energy and decarbonisation opportunities, including carbon capture and storage, electrification, and the production of green hydrogen,” EnQuest CEO Amjad Bseisu said.

Tailwind announced on 12 September first oil from its 100-percent operated Evelyn field in the UK Central North Sea ahead of schedule. Evelyn is now producing via the Triton FPSO and is expected to substantially increase Tailwind’s gas production. As part of the same subsea campaign, the project team installed a second subsea production line from its 100-percent owned Gannet-E field, which already produces via Triton.

i3 Energy plc announced on 22 September the spud of the Serenity appraisal well. The drilling programme is expected to last approximately 30 days.

Neptune Energy announced the award of a $30 million decommissioning contract to WellSafe Solutions, for a campaign covering more than 20 wells located across eight Dutch and UK North Sea fields.

Favourable fiscal and macroeconomic developments have further bolstered interest in Jersey Oil and Gas plc’s ongoing Greater Buchan Area (GBA) farm-out process, the company said on 22 September. Substantial progress has been made, with the majority of interested parties expected to complete their technical due diligence in October 2022, Jersey Oil and Gas added.

bp’s BP Exploration Operating Company

Limited has exercised the first of four months of options through 21 December 2022 for the charter of the Safe Zephyrus to continue providing gangway connected operations supporting the Seagull project at the ETAP central processing facility in the UK North Sea, Prosafe said on 22 September.

Petrofac has secured a three-year contract extension for maintenance services from Serica Energy. Under the terms of the agreement, Petrofac will continue with the provision of maintenance execution, maintenance consultancy, and metering services to Serica Energy’s Northern North Sea asset, the Bruce platform complex which processes production from its Bruce, Keith, and Rhum fields.

EnQuest CEO Amjad Bseisu

THE SOCIAL STRATEGIST

Digital communities, ecosystems, and partnerships

By Eric Doyle

In 2018 I was the Managing Director of an Energy Service company.

I had a selection of ‘tools and techniques’ that I used to grow businesses back then. On the Sales side I was very much into the ‘Challenger’ thinking. You may have read the book…

"Instead of leading with information about their company and its solutions, Challengers provide customers with surprising insights about how they can save or make money", we put this to effective use back in the day and it got us to commercial positions we could not dream of getting to by using other means. My tools and techniques worked very well for a time, then I noticed they were becoming less and less effective. More calls, more emails, more adverts, more PR, more shows…. declining results.

The rise of Digital.

Back then, ‘Digital Transformation’ meant ERP systems and Project Management systems. Things that would make life easier once we had won projects and were managing them, but Digital began to spread into other areas of business.

Digital HR portals, Digital HSE systems, Digital Quality processing…

I noticed the Digital Impact on Sales, Marketing and Business development in 2018, but I didn’t understand it.

It was becoming increasingly difficult for us to get to the right tables. If we did get there, we were increasingly late in the process. Trudging through analogue mud as the world turned digital…

In previous articles I’ve discussed how influence over broadcasting is key to progress in the strategic application of social media. Buyers tell us that they are more interested in your teams thought leadership content than your marketing materials and product sheets, they want to hear from the people not the brand…

People are winning the battle over the brands… Buyers are cutting out the ‘door openers,’ choosing which doors they want to open and opening them themselves.

Buyers want thought leadership content to allow them to assess whether you really understand their issues and can solve their problems, so it makes sense to have your team dominate the thought leadership space in your sector.

But so often we see organisations stuck in a corporate rut of stiff, glossy brochureware that is blending into the mass of other stiff, glossy brochureware that is not in any way creating influence in their sectors?

Influence comes from people connecting with people on a technical, commercial, and personal level, the means bringing personality into the picture.

Lean into the army of technical and commercial influencers you have in your team. Look outside your office or on your next team video call… your army is right there, and they have untapped agency.

“But Eric, we are an (insert your specialism) company, surely this doesn’t apply to us…?” Yes, it does…

If your business model requires businesses to buy your products and services…it applies to you.

Modern sales and marketing is all about creating digital communities

If you’d come into my office in 2018 and said…"we can see into the future and it’s all about digital communities, ecosystems and partnerships", I would have fallen off my chair laughing.

…it’s a commercial reset.

• We must be thinking influence over broadcasting and creating a space that people want to walk towards and join in.

• We must understand that the engine room for this is in our people, not out brochures.

• We must be thinking about training the internet to see us as the answer to all those questions that we need to be the answers to. Then we need a process and a framework to convert all of this into relationships, conversations, orders, revenue, and other meaningful business results.

The world has changed, your business world had changed whether you accept it, or not. Your people build digital communities, ecosystems, and partnership, not your marketing materials and products sheets.

The battle lines for order intake, revenue and ebitda in your sector are drawn, and they are online…do your people have the skills and expertise to build digital communities, ecosystems, and partnerships?

BRENT OIL PRICES OVER THE YEARS

October Review

YEAR1AGO

- BRENT OIL PRICE 2021 - $84.67

Oil prices continued to rise into the month of October with reports from OPEC and IEA confirming global supply shortages, improving mobility, and an increased demand.

OPEC countries had struggled to increase output due to both a lack of operating capacity and compliance with planned output cuts. The rising price was also helped by high natural gas prices, which was encouraging a switch to oil for power generation.

5AGO

YEARS

- BRENT OIL PRICE 2017 - $57.82

Oil giants, BP, announced in October that they had more than doubled profits in the third quarter after securing a 14% rise in oil and gas production. This update from BP came amongst a brighter outlook for oil companies across the world as the price of Brent crude reached its highest price for 2 years.

YEARS10AGO

- BRENT OIL PRICE 2012 - $112.58

Brent crude oil dropped with concerns that slower economic growth would curb oil demand. The World Bank cut its economic growth forecasts for East Asia and the Pacific region, home to two of the world’s largest oil consumers, and said there was a risk the slowdown in China may go on longer than expected.

Eric Doyle

Eric is a Co-Founder of Crux Consultancy Limited who train and coach cross sector B2B teams in the art and science of Strategic Social Media through Social Selling & Influence.

Europe Energy Review

By Tsvetana Paraskova

The energy crisis in Europe, exacerbated by Russia shutting down the key Nord Stream gas pipeline to Germany, and the EU’s plan to tackle the consequences of the crisis, once again dominated Europe’s energy scene this past month. A new gas pipeline from Norway to Poland was inaugurated, while more offshore oil and gas developments were approved in September. In low-carbon energy, Scotland unveiled its government programme, UK associations called for acceleration of renewables development, and companies announced wind, solar, batteries, and carbon capture projects.

Oil & Gas

Russia shut down in early September the Nord Stream gas pipeline to Germany, claiming technical issues with gas turbines at compressor stations and saying the pipeline would not open until the West lifts the sanctions against Russia which, Moscow says, currently prevent repairs of those turbines outside Russia.

At the end of September, Sweden, Denmark, and Germany suspected a sabotage at both Nord Stream pipelines which leaked gas in the Baltic Sea. Sweden and Denmark issued vessel navigation advisories, while Norway heightened the emergency preparedness for infrastructure, onshore, and offshore installations on the Norwegian Continental Shelf.

“Based on the information we have seen so far, much indicates acts of sabotage,” Norway’s Petroleum and Energy Minister Terje Aasland said on 27 September.

A day earlier, the Petroleum Safety Authority Norway (PSA) urged increased vigilance by all operators and vessel owners on the Norwegian Continental Shelf (NCS), after operator companies had recently given warnings and notifications of a number of observations concerning unidentified drones/aircraft close to offshore installations.

On the same day, the leaders of Norway, Denmark, and Poland inaugurated the Baltic Pipe natural gas pipeline from Norway to Poland via Denmark and the Baltic Sea. The Baltic Pipe project, running from the Norwegian sector of the North Sea, crossing Denmark from west to east and landing in Poland via the Baltic Sea, will bring gas from Norway to Poland. The benefits will go beyond Poland.

“The Baltic Pipe is a key project for the security of supply of the region and the result of an EU policy drive to diversify sources of gas. The pipeline will play a valuable role in mitigating the current energy crisis,” European Commissioner for Energy, Kadri Simson, said.

To tackle the soaring costs of energy for households and businesses, the European Commission proposed a cap on the revenues of companies that produce electricity at a low cost and a “crisis contribution” tax on fossil fuel companies. The Commission hopes the proposals – if approved – would raise 140 billion euros for EU member states to directly cushion the blow from the surging energy prices, European Commission President Ursula von der Leyen said in her State of the Union address.

The Commission also proposed an obligation for the EU to reduce electricity consumption by at least 5% during selected peak price hours.

The plan to cap revenues may fall short of the intended goals, at least where renewable energy ambitions are concerned, Rystad Energy said in research.

“The renewable industry is Europe’s best shot at producing affordable and secure power, but this policy reduces the private sector power providers’ ability to invest,” said Victor Signes, analyst renewables at Rystad Energy.

“The renewable power industry is not only helping to keep the lights on in Europe, but also picking up the bill too. If renewables are to take their proper place in Europe’s power mix, they will need support in turn in the not-too-distant future,” Signes added.

Commenting on the planned EU intervention on the energy market, Fabian Rønningen, senior power analyst at Rystad Energy, said: “Despite the unprecedented size and scale of the intervention it is designed to be short term

and does not address longer term supply issues. The stage is set for bigger and potentially more forceful interventions as Europe continues to decouple its energy supply from Russia.”

The Danish Energy Agency approved on 21 September a plan for development of the Solsort oil and gas field west of Denmark’s coast in the North Sea. The expected start of production at the field, operated by Ineos, is at the end of 2023. The Solsort field is expected to account for 12% of Danish oil production and 5% of gas production in 2024.

Low Carbon Energy

First Minister Nicola Sturgeon said on 6 September that Scotland “will do all we can to speed up our development and use of renewable energy.”

This autumn, Scotland will seek approval for the Fourth National Planning Framework, which will support the delivery of renewable energy projects, Sturgeon said in a speech presenting the Programme for Government 2022-2023.

“We will press the UK government to speed up fundamental reform of the energy market and break the link between the cost of gas and the price of renewable and low carbon electricity,” she added.

The UK’s North Sea Transition Authority (NSTA) received 26 bids in the UK’s first-ever carbon storage licensing round. A total of 19 companies expressed interest in the 13 areas on offer, which are off the coasts of Aberdeen, Teesside, Liverpool, and Lincolnshire, NSTA said on 22 September. The NSTA will now evaluate the bids with a view to awarding licences in early 2023. The first carbon injection could take place as early as 2027, the authority said.

RenewableUK urged in early September the new Prime Minister Liz Truss to speed up the roll-out of new renewable energy projects to help bill payers and boost the nation’s energy security.

“Industry wants to work with Government on our plans to break the link between the exorbitant cost of gas and the price of electricity. This will enable billpayers to benefit more from the vast amounts of low-cost electricity being generated by wind and other renewables, by no longer allowing gas to call the tune in the energy market,” RenewableUK’s CEO Dan McGrail said.

77% of people throughout the UK think the new Government should use new wind and solar farms to reduce electricity bills, and 76% of people support building renewable energy projects in their local area, a poll by Survation commissioned by RenewableUK showed.

The overall pipeline of onshore wind projects –operational, under construction, consented, or being planned – in the UK has increased by over 4 gigawatts (GW) in the last twelve months, from 33 GW in October 2021 to 37 GW today, a new report by RenewableUK showed in early September.

“Industry wants to work with Government on our plans to break the link between the exorbitant cost of gas and the price of electricity. This will enable billpayers to benefit more from the vast amounts of low-cost electricity being generated by wind and other renewables, by no longer allowing gas to call the tune in the energy market,”

said RenewableUK’s CEO Dan McGrail

The current pipeline of blue hydrogen projects is expected to exceed the 2030 targets in the UK, according to an analysis from Westwood Global Energy Group. Blue hydrogen projects account for over 16 GW of total announced hydrogen capacity in the UK and Norway, equivalent to around 90% of the hydrogen projects total for the same region. The UK alone accounts for 13 GW capacity.

“The scale of blue hydrogen developments makes them a necessity to ensure 2030 regional targets are met –in fact, the current pipeline of announced capacity for UK projects would exceed targets if all achieved their planned start-up dates,” said David Linden, Head of Energy Transition at Westwood.

In the EU, the Commission approved in September “IPCEI Hy2Use”, the second Important Project of Common European Interest in the hydrogen value chain. The project involves 29 companies and 35 projects from 13 EU Member States: Austria, Belgium, Denmark, Finland, France, Greece, Italy, the Netherlands, Poland, Portugal, Slovakia, Spain, and Sweden. IPCEI “Hy2Tech” is focused on the development of novel technologies for the production, storage, transportation, and distribution of hydrogen as well as applications in the mobility sector. The Member States will provide up to 5.2 billion euros in public funding, which is expected to unlock additional 7 billion euros in private investments.

In company low-carbon energy projects, Flotation Energy and Vårgrønn announced an offshore wind partnership to support oil and gas decarbonisation in Scotland. Together the partners will generate renewable energy from offshore wind farms to enable the electrification and decarbonisation of offshore oil and gas installations in the North Sea. Any excess power will be made available to benefit UK consumers, the firms said.

Carlton Power has chosen to build its third hydrogen hub in the UK on land within the Langage Energy Park, the first of its kind in Devon and Cornwall. The 10-MW hydrogen hub project will provide local companies - for example energy intensive industries or those with transport fleets – with easy access to hydrogen fuel.

Equinor and Wintershall Dea have agreed to pursue the development of an extensive Carbon Capture and Storage (CCS) value chain connecting continental European CO2 emitters to offshore storage sites on the Norwegian Continental Shelf. An approximately 900-kilometre-long open access pipeline is planned to connect the CO2 collection hub in Northern Germany and the storage sites in Norwayprior by 2032.

“The scale of blue hydrogen developments makes them a necessity to ensure 2030 regional targets are met – in fact, the current pipeline of announced capacity for UK projects would exceed targets if all achieved their planned start-up dates,”

Horisont Energi and Neptune Energy signed a Memorandum of Understanding (MoU) to develop the Errai Carbon Capture and Storage (CCS) project in Norway.

France-based hydrogen producer Lhyfe opened the world’s first offshore renewable hydrogen production pilot site at the end of September. Lhyfe will produce the first kilograms of renewable green hydrogen at quay and then at sea, operating automatically, in the most extreme conditions. The company has voluntarily set the bar high by installing its production unit on a floating platform, connected to a floating wind turbine, Lhyfe said.

Saipem and Siemens Energy have signed a Memorandum of Understanding (MoU) to jointly develop a concept design for a 500 MW high-voltage alternating current (HVAC) floating electrical substation for use in offshore wind farms.

“The new joint solution will significantly optimize critical technical parameters, such as weight, electrical efficiency, and asset longevity, thus lowering the production costs and enabling an unprecedented number of countries to benefit from large-scale offshore wind generation,” said Agustin Tenorio, Vice President Transmission Systems at Siemens Energy.

said David Linden, Head of Energy Transition at Westwood

SPONSORED BY

What’s Ultimate Cement Placement?

In a few words: smooth, efficient and painless.

When’s the last time you gave your offshore cementing operations a critical review? Is everything “just fine” or can it be better… much better? Do you even know?

Check out what our customers have discovered working with us across the globe.

Ultimate Cement Placement. It's what your drilling team deserves.

www.deltatekglobal.com/ogv

ENERGY REVIEWUS

By Tsvetana Paraskova

US upstream and oilfield services employment rose for yet another month in August as the oil and gas industry continues to see part of the jobs lost during the pandemic recovered. Yet, despite solid overall demand for oil in the United States and the highest estimated petroleum exports on record, the US cannot come to the rescue and alleviate the energy crisis in Europe.

US Oil Production Growth Could Be Below Forecasts

Current forecasts of US crude oil production growth may have to be significantly revised down. The recent flattening in the number of active drilling rigs in the top US shale basin, the Permian, suggests that output may disappoint due to supply chain constraints and cost inflation. The number of active drilling rigs in the Permian is up by more than 80 since September 2021, but the number has more or less remained unchanged since May 2022, per data from Baker Hughes.

oil production during a year. The current record is 12.3 million bpd, set in 2019. In natural gas, production has been rising relatively steadily since the first quarter of 2022, when it averaged 94.6 billion cubic feet per day (Bcf/d). The EIA expects US dry natural gas production to average 99.0 Bcf/d in the fourth quarter this year and then rise to 100.4 Bcf/d for 2023.

However, US shale executives themselves admit that America’s oil production growth would likely be below expectations.

US oil production is set to grow this year, but the growth pace would likely be lower than previously expected due to cost inflation in the double digits, supply chain issues and bottlenecks, and infrastructure and services constraints.

Shale producers prioritize returns to shareholders and paying down debts to significantly boosting production, and even those planning an increase in drilling activity face supply chain delays and up to 20% higher costs.

According to the September Short-Term Energy Outlook (STEO) by the Energy Information Administration, US crude oil production is expected to average 11.8 million barrels per day (bpd) in 2022 and 12.6 million bpd in 2023, which would set a record for the most US crude

Scott Sheffield, chief executive officer at Pioneer Natural Resources, one of the top US shale producers, said at the Barclays CEO EnergyPower Conference in early September that US oil production could grow by 500,000 bpd in 2022 compared to 2021. Next year, the growth could be even slower than this year’s expected 500,000-bpd increase, due to supply chain and infrastructure issues, as well as rising costs.

“There could be more downside,” Sheffield said at the conference, as carried by Reuters.

The EIA currently expects US oil output to rise by around 800,000 bpd in 2023 compared to 2022.

Source: Getty Images

Main Oil Producers’ Group Calls For Clearer Federal Policies, Again

Meanwhile, the American Petroleum Institute (API), the main oil producers’ group, said in a monthly report on 21 September that US oil demand remained resilient in August, while inventories – including commercial and strategic petroleum reserves –dipped to their lowest level since 2003.

“The current situation shows the need for increased development of domestic energy that is supported by cogent and supportive policies – including access to resources, infrastructure, and conducive trade and tax policies – that foster investment, job growth and, therefore, economic growth and security,” API’s chief economist Dean Foreman said.

“Unfortunately, we don’t have clear, strong policies supporting domestic oil and natural gas production – to meet domestic needs and to back up America’s recent promises to supply energy to our European allies and others internationally,” Foreman added.

“The most recent response from Washington was a veiled threat by U.S. Energy Secretary Jennifer Granholm to ban U.S. exports of diesel fuel and other distillates if winter conditions increase demand and put upward pressure on prices,” API’s chief economist noted.

API’s Monthly Statistical Report with August data showed that U.S. petroleum demand remained solid above 20.0 million bpd as fuel prices fell along with those of crude oil and indicators of industrial production and consumer sentiment reinforced demand in August 2022. Domestic petroleum demand remained solid over the first eight months of 2022 too, rising by 2.9% year over year. US refining activity exceeded 16 million bpd for a sixth straight month, and the capacity utilization rate was over 92% for a fourth month in a row.

As domestic refining sustained historically strong throughput levels, record-high natural gas liquids (NGL) production – at 6.0 million bpd – offset a decrease in U.S. crude oil production. U.S. petroleum exports of 10.1 million bpd and net exports at 1.8 million bpd rose to the highest for any month on record since 1947, API said.

A combination of solid demand and refining activity, flat production, and record-high exports resulted in the lowest combined U.S. commercial and governmentcontrolled (Strategic Petroleum Reserve, SPR) crude oil inventories since 2003, API noted.

In its Industry Outlook for the third quarter of 2022, API says that despite slowing economies in the US and Europe, the main forecasters still expect global economic growth in the near term that historically has required more oil and natural gas to fuel the economy.

“By contrast, with continued work force, supply chain, financial and energy policy headwinds, the amount of global investment in oil and natural gas development has risen from the prior quarter but remained historically low. This is seen in API’s tracking of the global flow of capital expenditures and the recent backlog of projects under construction in the U.S., which at $158 billion was nearly cut in half compared to where it was at the end of 2020,” API’s Foreman said.

“Upstream employment is growing steadily alongside the world’s demand for affordable, reliable energy. The Texas oil and natural gas industry continues to play its leadership role in enhancing national and energy security in our nation and for our trade allies around the world,”

“To supply global oil and natural gas demand that has remained historically strong – and by EIA estimates could reach new record-highs in 2023 – it is imperative to have the cogent energy policies that support the industry’s resource access and its abilities to expand infrastructure, execute capital projects, attract investment capital and build and sustain a productive work force,” the chief economist of API noted.

Job Growth Continues in US Oil & Gas Industry

Upstream oil and natural gas employment in Texas, the largest US oil-producing state, grew in August by 2,600 jobs from July, according to data released by Texas Workforce Commission in September.

Since the low point in employment September of 2020, the upstream oil and gas industry in Texas has added 44,700 jobs, averaging growth of 1,943 jobs per month, the Texas Oil & Gas Association (TXOGA) said in a statement. At 201,700 upstream jobs, August 2022 jobs were up by 33,400, or 19.8 percent, from August 2021. August’s employment was the first time to break the 200,000 mark since March of 2020.

“Upstream employment is growing steadily alongside the world’s demand for affordable, reliable energy. The Texas oil and natural gas industry continues to play its leadership role in enhancing national and energy security in our nation and for our trade allies around the world,” said TXOGA president Todd Staples.

In oilfield services, employment in the US oilfield services and equipment sector rose by an estimated 6,854 jobs to 648,914 in August, according to preliminary data from the Bureau of Labor Statistics (BLS) and analysis by the Energy Workforce & Technology Council. Gains in August make OFS employment the highest since the beginning of the COVID-19 pandemic, but still off the pre-pandemic mark in February 2020 of 706,528 jobs.

“The August job increases are very encouraging as our sector continues to rebuild the workforce from pandemic losses,” said Energy Workforce & Technology Council CEO Leslie Beyer.

“The current situation shows the need for increased development of domestic energy that is supported by cogent and supportive policies – including access to resources, infrastructure, and conducive trade and tax policies – that foster investment, job growth and, therefore, economic growth and security,”

“Our industry is meeting the challenge of growing global demand by producing at almost pre-pandemic levels, reducing emissions industry wide, all while continuing to make gains in the workforce.”

said TXOGA president Todd Staples

API’s chief economist Dean Foreman said

SPONSORED BY www.craig-international.com

MIDDLE EAST Energy Review

By Tsvetana Paraskova

The token output cut from the OPEC+ group, the Saudi warning of very low spare production capacity, and a number of deals and collaborations marked this past month’s oil and gas industry news flow from the Middle East.

OPEC+ Reverses Small Output Increase

At the meeting in early September, OPEC+ decided to cut their collective oil production target by 100,000 barrels per day (bpd) for October, reversing the increase of the same amount approved for September in early August. The energy ministers of the OPEC+ production pact agreed to return the targeted production levels to the August quotas, with OPEC saying that the 100,000-bpd increase was intended only for September.

“The Meeting noted that higher volatility and increased uncertainties require the continuous assessment of market conditions and a readiness to make

Smart Procurement

At Craig International, procurement isn’t just about processes, products and numbers. We promote a culture of ownership among our people, who are trusted to get on with the job on your behalf. We’re proud of how we serve clients.

We’re always looking for new ways to add value and routinely introduce new technological solutions to make service delivery even simpler, smoother, faster.

immediate adjustments to production in different forms, if needed, and that OPEC+ has the commitment, the flexibility, and the means within the existing mechanisms of the Declaration of Cooperation to deal with these challenges and provide guidance to the market,” OPEC said in a statement after the short meeting on 5 September.

The next OPEC+ meeting is scheduled to be held on 5 October

The small cut in the production target for October is actually quite irrelevant considering that OPEC+ is estimated to be more than 3.5 million bpd behind collective quotas.

But the more important outcome of the September meeting was the decision of the OPEC+ group to “request the Chairman to consider calling for an OPEC and non-OPEC Ministerial Meeting anytime to address market developments, if necessary.” This statement, analysts said, means that the group – and its de facto leader Saudi Arabia – could call an emergency meeting and take any steps it considers appropriate to stabilise the il market and prices.

The OPEC+ alliance, however, is nowhere close to reaching its oil production targets. The gap between the quota and the actual oil production from OPEC+ countries widened to as much as 3.58 million bpd in August, Argus reported in mid-September, citing delegates and OPEC data it had seen. In August, the two biggest laggards in production quotas were Russia of the nonOPEC group and Nigeria of OPEC, the data showed. Russia’s oil production was 1.25 million bpd below its target, while Nigeria was 700,000 bpd behind its quota. The underperformance in September is expected to be even higher because the group lifted its collective target by 100,000 bpd for the month of September.

Saudi Aramco Warns of Low Spare Capacity

Global spare capacity is at very low levels, mostly because of years of underinvestment in the oil and gas industry, Amin Nasser, chief executive at Saudi Arabia’s oil giant, Aramco, said at the Schlumberger Digital Forum on 20 September.

“These are the real causes of this state of energy insecurity: under-investment in oil and gas; alternatives not ready; and no back-up plan. But you would not know that from the response so far,” the CEO of the world’s biggest oil firm and top crude oil exporter said.

Commenting on the current energy crisis, Nasser said “oil inventories are low, and effective global spare capacity is now about one and a half percent of global demand.”

“Even with strong economic headwinds, global oil demand is still fairly healthy today. But when the global economy recovers, we can expect demand to rebound further, eliminating the little spare oil production capacity out there. And by the time the world wakes up to these blind spots, it may be too late to change course,” Aramco’s chief executive noted.

He also reiterated Saudi Arabia’s long-held view that the world needs a realistic energy transition plan which acknowledges the role of oil and gas as energy sources needed for decades to come.

“Because when you shame oil and gas investors, dismantle oil- and coal-fired power plants, fail to diversify energy supplies (especially gas), oppose LNG receiving terminals, and reject nuclear power, your transition plan had better be right,” Nasser said.

“Instead, as this crisis has shown, the plan was just a chain of sandcastles that waves of reality have washed away. And billions around the world now face the energy access and cost of living consequences that are likely to be severe and prolonged,” he added.

Major Deals in the Middle East

Saudi Aramco and major oilfield services provider Schlumberger announced plans in September to collaborate and develop a digital platform that will provide sustainability solutions for hard-to-abate industrial sectors. The proposed platform will enable companies in industries such as oil and gas, chemicals, utilities, cement and steel to collect, measure, report and verify their emissions, while also evaluating different decarbonization pathways, Schlumberger said.

Saudi Arabian Investment Minister Khalid Al-Falih met Eni’s chief executive

Claudio Descalzi to discuss views about the role of Saudi Arabia based on current energy market challenges. During the meeting, Eni and the Saudi Ministry of Investment (MISA) signed a memorandum of understanding to promote cooperation between Eni, Saudi institutions, and companies in the field of sustainable development around the country, and speciality conversion chemicals.

In the United Arab Emirates, Abu Dhabi National Oil Company (ADNOC) awarded a $548 million (AED2.01 billion) contract to build a new main gas line at its Lower Zakum field offshore of Abu Dhabi. The award will increase Lower Zakum field’s gas production capacity from 430 million to 700 million standard cubic feet per day, supporting ADNOC’s plans to enable gas self-sufficiency for the UAE and cater for increasing global energy demand.

ADNOC has also awarded five framework agreements valued at $1.83 billion for Directional Drilling and Logging While Drilling (LWD) to support its efforts to expand production capacity of its low-carbon oil and gas resources.

ADNOC made its first shipment of low-carbon ammonia from the UAE bound for Hamburg, Germany—the first ever cargo of low-carbon ammonia to be shipped to Germany.

“Our collaboration with customers in Germany also underlines ADNOC’s ambitious growth plans for the production of clean hydrogen, and its carrier fuels such as ammonia, which will play a critical role in decarbonizing hard-toabate industrial sectors,” said Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO.

The top executives of ADNOC and Italy’s Eni discussed in Abu Dhabi in September further opportunities to help increase global gas supply security. The executives discussed the acceleration of the multi-billion-dollar Ghasha project, which is estimated to hold significant recoverable gas and is expected to produce more than 1.5 billion cubic feet of gas per day (bcfd) in addition to more than 120,000 barrels of high-value oil and condensates per day.

Petrofac said it had been awarded a twoyear Field Maintenance Services contract

extension with ADNOC Group. Under the agreement, Petrofac will continue to support operations at the Haliba oil field, located onshore along the south-east border of Abu Dhabi, providing specialist personnel to maintain and support facilities.

In Qatar, QatarEnergy has selected TotalEnergies as the first international partner in the North Field South (NFS) expansion project, which comprises 2 LNG mega trains with a combined capacity of 16 million tons per annum (MTPA) and will raise Qatar’s total LNG export capacity to 126 MTPA.

QatarEnergy’s affiliates QatarEnergy Renewable Solutions and Qatar Fertiliser Company (QAFCO) signed agreements for the construction of the Ammonia-7 Project, the industry’s first world-scale and largest Blue Ammonia project.

“Our investment in this project speaks to the concrete steps we are taking to lower the carbon intensity of our energy products, and is a key pillar of QatarEnergy’s sustainability and energy transition strategy,” said Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, President and CEO of QatarEnergy.

QatarEnergy also signed a Memorandum of Understanding (MoU) with General Electric (GE) to collaborate on developing a carbon capture roadmap for the energy sector in Qatar. The focus of the MoU is to explore the feasibility of developing a world-scale carbon hub at Ras Laffan Industrial City, which as of today, is home to more than 80 GE gas turbines.

The roadmap will target to develop a carbon capture and sequestration hub in Qatar, utilize low-carbon fuels such as hydrogen in GE gas turbines to reduce carbon emissions, and explore the potential of using ammonia as a fuel in GE gas turbines globally.

MIDDLE

BY

Minister Khalid Al-Falih

ENERGY PROJECTS MAP

USA (GoM)

Leon Offshore Oil Field (Salamanca FPU)

LLOG

$500 million

Audubon Engineering has been selected by LLOG Exploration to provide detailed design, procurement and vendor equipment management, in addition to support in the construction, pre-commissioning and offshore commissioning areas. The Independence Hub hull, topside truss, cranes and lifeboats will be reused, while topside equipment (including piping, electrical and instrumentation systems) will be new..

CYPRUS

Cronos Gas Discovery Eni

$500 million

Eni has made a significant gas discovery a the Cronos-1 well in Block 6, 160 km offshore Cyprus. The Cronos-1 wildcat was drilled in 2,287 metres of water depth.

Preliminary estimates indicate approximately 2.5 Tcf of gas in place. Eni is considering two development options to advance the project; Floating LNG or transporting gas to Egypt, depending on the drilling results.

Drilling on the second exploration well is ongoing and is due to be completed in November 2022.

CHINA

Bozhong 26-6 and Bozhong 9-2 Oil Discoveries CNOOC $1 billion

Talos Energy is planning to spud Puma West’s second appraisal well in Q4 2022, with results set for early 2023. The developer has been authorised to drill this appraisal well to a depth of over 8,100 metres using Diamond Offshore Drilling’s Ocean BlackHornet drillship. The discovery is located west of the BP-operated Mad Dog field.

UAE

Lower Zakum – Long Term Phase-1 ADNOC $650 million

ADNOC has awarded NPCC a $548 million EPC contract for an 85km subsea gas pipeline from Zakum West Super Complex to Das Island. The contract also includes constructing, installing and testing a new platform at the Zakum West Super Complex and the new gas facility located at Das Island.

SPONSORED BY

Energy projects and business intelligence in the energy sector

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.

It 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.

The EIC provides one of the most comprehensive sources of energy projects and business intelligence in the energy sector today.

INDIA

Mumbai High Redevelopment – Phase 5 ONGC

$400 million

ONGC started the tender process for the fifth development phase of the Mumbai High field. Technical and commercial offers are likely to be submitted by October 2022, with ONGC expected to finalise its preferred contractor before the end of 2022.

CANADA

Core Bay du Nord Equinor $10 billion

A request for expressions of interest was launched for the FEED stage of the project in August, with a formal bidding process set take place during Q4 2022. The contract could be awarded in Q1 2023, with the FEED work expected to take up to 12 months.

NORWAY

Halten Øst-Sør Development Equinor

$150 million

Wood plc has been awarded a contract to deliver the detailed design of subsea pipelines for Halten East Development. The work will be undertaken by Wood's subsea and pipeline engineering team in Norway after the completion of the concept design and FEED works. The contract was awarded under an evergreen master services agreement for engineering services with Equinor.

SURINAME

Block 53 – Baja-1 Discovery Apache $500 million

Apache Corporation (APA) has announced its first discovery at Block 53 with the successful drilling of the Baja-1 exploration well. The well was drilled to a total depth of 5,290 metres using the Noble Gerry de Souza drillship, which led to 34 metres of net pay of good quality light oil and gas condensate being discovered.

PAPUA NEW GUINEA

Elk-Antelope Gas Field Total Energies $1.5 billion

Technip Energies has been awarded the FEED contract for the development of the Elk and Antelope onshore gas fields, including the well pads and a large central processing facility. Technip stated that it will conduct the work in a consortium with Clough.

USA (Alaska)

Pikka Field Development Santos $2.6 billion

Santos has announced a final investment decision (FID) to proceed with the first development phase of the $2.6 billion Pikka project. The field will have an initial output of 80,000 b/d when production starts in 2026.

ANGOLA

Northern Gas Complex Azule Energy

$2 billion

Saipem has secured three EPC contracts worth approximately $900 million, one onshore and two offshore. Saipem will handle the engineering, procurement, and construction of the Quiluma platform and the associated onshore natural gas processing plant, as well as hook-up and commissioning assistance.

GERMANY/NORWAY

Norwegian-German (NOR-GE) CCS Project Equinor $3 billion

Equinor and Wintershall Dea are planning to develop a 900km long open access pipeline to connect a carbon dioxide (CO2) collection hub in Northern Germany to storage sites in Norway. The pipeline will have an estimated capacity of 20 - 40 million tonnes per year by 2037. The project partners will look to deploy an early transport solution where CO2 is transported by ship from the export hub to the storage sites.

PROJECTS

Oil & Gas Decommissioning: Opportunities and Challenges

By Tsvetana Paraskova

Spending on decommissioning is set to increase every year over the next two decades as offshore oil and gas fields reach their end of life, especially in mature basins such as the North Sea, while onshore wells at the end of their production life need to be safely plugged. Removing and repurposing the infrastructure from decommissioned offshore and onshore assets creates long-term opportunities for the supply chain of oilfield services.

Decommissioning costs have been steadily falling offshore the UK, but the industry faces a highly ambitious cost reduction target.

(Credit: Shell)

Globally, the high oil and gas prices have not resulted yet in a renewed focus on decommissioning, which, analysts say, could threaten the targets for decommissioning backlog. Delays in decommissioning work could translate into more expensive decommissioning down the road, according to an analysis by Boston Consulting Group from June this year.

Oil and gas companies are mobilizing to invest in extending the life of existing assets, growth across the oil and gas value chain, decarbonization, and lowcarbon energy businesses. The largest international companies plan a combined $110 billion in capital expenditure in 2022, which would be around 25% higher than in 2021, Philip Whittaker, Partner & Director at Boston Consulting Group, said.

“As money flows into the sector, companies have the opportunity to invest in both sustainability and competitive positioning. Delivering on decommissioning commitments is core to this,” Whittaker wrote.

“But so far, this upcycle has not coincided with a renewed emphasis on decommissioning. We believe this poses a threat to targets for decommissioning backlog liquidation and performance, intensifying the risk of value erosion,” the BCG director noted.

Pushing back decommissioning could also threaten the emissions targets of oil and gas companies, according to the analysis.

“For operators with late life portfolios, decommissioning is often the primary driver of emissions reductions (though usually insufficient to fulfil both absolute and intensity emissions reduction targets). As such, pushing back the cessation of production dates of late life assets - which tend to be among the largest emissions and emissions intensity assets in a basin - could slow down decarbonisation,” BCG’s Whittaker says.

Moreover, delays are likely to result in more expensive decommissioning, considering the high inflation rates in the UK and the US.

Another challenge of delayed decommissioning activity could be that delays are likely to deter the oil and gas supply chain from building specialist capability.

“Further delays in decommissioning activity are likely to deter specialists, making it difficult for operators to access an essential ingredient to realize full potential from scale,” BCG said.

Opportunities and Collaboration in UK North Sea Decommissioning

The UK has some of the most advanced and experienced companies specialising in decommissioning because of the maturity of the UK North Sea basin compared to some other offshore locations around the world. Decom North Sea has connected capability with opportunity across the decommissioning sector for more than a decade. Decom North Sea has 220 members, including operators, major contractors, service specialists, and technology developers.

The UK is launching a Subsea

Decommissioning Collaboration in what it describes as a game-changing initiative to scale up decommissioning activity and boost industry partnership. The key goals of the initiative are to support radical technical and commercial efficiencies; provide opportunity to trial new technologies and solutions; and provide a clear hopper of work for the next 25 years. The initiative will have a “world first” ambition to cut costs by 50 percent, and it will look to enable industry-leading solutions that can be transferred worldwide.

The organisers of the initiative, backed by the North Sea Transition Authority (NSTA), are currently holding one-to-one meetings to discuss and refine goals and opportunities, with the purpose to start developing a roadmap to success from December 2022 onwards.

UKCS Decommissioning Cost Estimate Falls 25%

Since 2017, the decommissioning cost estimate in the UK Continental Shelf has dropped by 25 percent, the North Sea Transition Authority (NSTA) said in a report in August.

The total estimated cost of decommissioning UKCS upstream oil and gas infrastructure fell by £1.5 billion, or by 2 percent, to £44.5 billion in 2021. The drop last year contributed to a total cut of £15 billion, or 25 percent, since 2017. Back then, the NSTA introduced a baseline estimate of £59.7 billion and set a target of reducing costs by 35% to £39 billion by the end of 2022.

The Decommissioning Cost Estimate Report 2022 highlighted the industry’s ability to generate huge savings for the Exchequer and carry out projects in a more cost-effective manner, the authority said.

“The highly ambitious 35% target was always intended to be challenging and the significant savings already delivered greatly benefit companies, which can invest more in production and emissions reduction projects, and taxpayers by reducing the cost of decommissioning tax reliefs to the Exchequer,” the NSTA noted.

During the first two years of the target, the oil and gas industry made swift

cost estimate by a massive 17%. The pace of cost cuts has slowed since then, partly due to the logistical and economic pressures of the Covid-19 pandemic, yet progress has continued, the authority said.

Importantly, the scale of reductions to the estimate is reflected in the final costs of completed projects, which are on average 20-25% lower than initially predicted, over the five years.

The report showed that in 2021, decommissioning expenditure totalled £1.2 billion, lower than the forecast £1.4 billion, thanks to improved project execution and Covid-related deferrals of activity.

“This was a sizeable investment in the face of unprecedented logistical and economic pressures, and points to industry’s determination to carry out planned work and meet its decommissioning obligations,” the NSTA said. The authority will publish in the middle of 2023 a final report on progress against the 35% target, which expires at the end of 2022.

“Delivering potential savings of £15bn during a short period marked by extremely turbulent economic conditions should give the sector confidence as it looks to the future,” Pauline Innes, NSTA Head of Decommissioning, said in

“The decommissioning market is worth tens of billions of pounds in the UK alone. Our industry is demonstrating that it can complete projects safely, efficiently and economically in the North Sea, and that places it in a strong position to compete for what is a big international prize,” Innes added.

The NSTA vowed to continue helping the decommissioning sector pick up momentum, including through the introduction of new estimates and targets, the authority’s head of decommissioning noted.

“Decommissioning offers a longterm, sustainable opportunity for the UK supply chain, with investment expected to ramp up to a peak of £2.5bn per year over the next two decades and will contribute 25-30% of sector spend over the next four decades,” the NSTA said in the report.

“Industry continues to work hard to deliver cost efficiencies by pulling the levers at its disposal, including effective planning, commercial transformation, infrastructure re-purposing plus testing and deploying new technology, all of which are key pillars of the NSTA’s Decommissioning Strategy,” the authority noted.

“By maintaining this positive approach, the sector can achieve further cost reductions, though it must do so against a challenging global economic

Decommissioning offers a longterm, sustainable opportunity for the UK supply chain

ASCO provides unrivalled NORM Solutions through integrated decommissioning offering

With over 50 years of experience, ASCO has the expertise and capability to provide a fully integrated logistics and materials management solution, delivering a wide range of resources across all areas of logistics, materials, fuels and bulks, marine and environmental services.

ASCO has been supporting decommissioning projects for more than ten years with excellent safety and service delivery performance providing an unrivalled turnkey solution. NORM Solutions is a fundamental part of the full suite of decommissioning services offered, specialising in the receipt and decontamination of Naturally Occurring Radioactive Material (NORM).

Often NORM decommissioning services are sourced separately once the requirement has been identified. Clients who utilise a package of ASCO's integrated services to support their scope of requirements can rest assured that the dedicated NORM Solutions team are ready and available to provide timely NORM waste management.

Benefitting from a purpose built, state-of-the-art facility in Aberdeen, the team handles all types of NORM contaminated equipment, solids, sludges and liquids, supporting Energy Industry Decommissioning locally and throughout the UK. ASCO's facility is fully authorised by the Scottish Environment Protection Agency (SEPA) and was designed to operate at the highest standards.

Operating the most advanced NORM descaling, decontamination and repackaging facility in the UK, our specialist team are highly trained in managing all NORM contaminants, handing the cleaning process. Incorporated within the NORM Solutions facility are dedicated Ultra HighPressure Water Jetting Booths, a Strip Down area and a Tubular Cleaning Booth.

Over the past six months, NORM Solutions has carried out a range of decommissioning projects for major operators across the UK, trebling their revenue and securing a strong project pipeline

for the next 2-5 years. As an example, a successful collaboration took place between ASCO’s integrated environmental service offering (including NORM Solutions), Port of Blyth and Thompsons of Prudhoe. The scope of work included the receipt, decontamination, and disposal of subsea infrastructure from our client’s FPSO and the associated fields. 1,675 tonnes of material were received from three port calls which were taken to a dedicated decommissioning space at the Port of Blyth. Having this base allowed the material to be safely offloaded, stored and downsized for onward treatment disposal.

Increased demand for a fully integrated materials management solution in decommissioning and continued project success has provided opportunity to strengthen the NORM team. The in-house team of dedicated specialists are available 24/7 to ensure clients are supported as soon as NORM services are required.

John Davidson, NORM Operations Manager, has been with the team for 10 years and offers a wealth of knowledge around NORM Solutions capabilities. Commenting on the recent success, John said: "NORM Solutions is a key element of ASCO's Environmental Services service line and has huge potential to tie in with client's current contracts. ASCO has a multitude of clients who could benefit from NORM's services, and many are beginning to see that. We have the facilities to offer a one-stopshop service, handling decommissioning and NORM decontamination alongside your logistics, materials and supply base needs."

To discuss NORM Solutions, get in touch with Lee Vettese, Regional Sales Executive (lee.vettese@ascoworld.com). For further information on NORM Solutions visit the ASCO website: ascoworld.com/services/norm

Ultra-High Pressure Water Jetting Operations being carried out at the NORM Solutions facility in Aberdeen

NORM Solutions supporting Decommissioning at Port of Blyth

Lee Vettese, Regional Sales Executive

- Environmental Services, and John Davidson, NORM Operations Manager, outside the NORM Solutions facility in Aberdeen

NORM Solutions recently celebrated an impressive 10 years Lost Time Injury (LTI) free

NORTH SEA DECOMMISSIONING a multi-billion-pound opportunity

The North Sea Transition Authority’s (NSTA) latest estimate for the total cost of decommissioning infrastructure is £44.5 billion, the estimate has been cut by around 25% since 2017 and we are pushing industry to find further savings, but it still offers significant opportunities for a wide range of businesses in the supply chain.

In 2021 decom spend was £1.2bn, a sizeable figure but lower than expected partially due to covid-related deferrals.

Nonetheless decom activity is intensifying in the North Sea and spend is expected to increase significantly to around £2.5bn per year over the next two decades as licensees look to decommission infrastructure, including decommissioning up to 150 wells a year.

This is not only a long-term opportunity domestically but, as the supply chain develops increasingly cost-efficient services, a chance to win more work overseas.

Owners of offshore oil and gas infrastructure, including wells have a statutory duty to decommission in a timely and cost-efficient way, and the NSTA works with industry to help them meet this obligation using four principal areas of focus:

Planning for Decommissioning: Driving cost efficiency through effective late-life stewardship, creating a platform for timely delivery.

Commercial transformation: Improving market efficiency, establishing a competitive, sustainable market.

Supporting energy transition from late life into decommissioning: Reducing greenhouse gas emissions from decommissioning and capitalising on opportunities to reuse or re-purpose infrastructure.

Technology, processes and guidance: The development and deployment of technology, appropriate regulatory processes and clear guidance underpin delivery of the Strategy

A recently-launched screening tool helps operators to plan for decommissioning or repurposing of infrastructure.

DECOMMISSIONING

Repurposing infrastructure can play a significant role in the ongoing Energy Transition, and Operators with fields that are six years from the end of production are encouraged to use the screening tool to assess whether the infrastructure can be repurposed for other uses, such as within carbon storage sites, or need to be prepared for decommissioning.

Initial analysis suggests that pipelines present the greatest opportunity for repurposing with more than 100 which may be suitable for carbon storage or hydrogen projects, therefore lowering overall costs and helping with economic viability.

The NSTA has revamped our Pathfinder site to host even more information about a range of North Sea projects, including decommissioning opportunities, and to encourage licensees and the supply chain to come together early to discuss work.

Collaboration between licensees who may be looking at decommissioning work in similar areas or similar times and between licensees and the supply chain can be a significant factor in completing work efficiently and lowering costs.

As we promote increased visibility of work that needs to be done, we expect decommissioning campaigns to become standard practice.

Currently, more than 1,300 subscribers receive monthly emails listing the recent updates on Pathfinder. Register here.

The North Sea Transition Authority, known as the Oil and Gas Authority until March 2022, is a private company limited by shares wholly owned by the Secretary of State for Business, Energy and Industrial Strategy.

For more information see our website: www.nstauthority.co.uk

Decommissioning is a massive opportunity for the North Sea supply chain.

Pauline Innes, NSTA Head of Decommissioning

In 2021 decom spend was £1.2bn, a sizeable figure but lower than expected partially due to covidrelated deferrals

Rising to the Decommissioning Challenge

The number of offshore assets reaching their end of life, globally, is rising, meaning decommissioning projects are a real eventuality for many operators.

Decommissioning is an inherently hazardous exercise, one that requires meticulous planning, experienced people and an extremely defined skill-set, if it is to be executed safely.

Whilst decommissioning is an expensive business, costs have been declining in recent years due to increased innovation, better cooperation throughout the supply chain and the development of first-class skills and capabilities.

In this article, Richard Lind, Operations Manager for Ashtead Technology’s Mechanical Solutions service line discusses the many challenges facing the sector and how Ashtead Technology can help Operators make decommissioning safer and more cost effective, whilst reducing environmental impact.

Best-in-class services

“Ashtead Technology are international experts in the provision of offshore decommissioning services for the energy sector. With one of the largest fleets of decommissioning tools and systems in the market, we specialise in ROV tooling, control and monitoring solutions, structure monitoring services, cutting systems and seabed dredging solutions.

“We offer a comprehensive service capability for the cutting and removal of oil & gas and renewable energy infrastructure, with a proven track record in field clearance and structure & pipeline cutting and recovery. Specifically for the renewables market, we provide a suite of services for the decommissioning of met masts, monopiles, tri-pile foundation structures and export cables.

“The continued ambition to reduce decommissioning expenditure is a challenge for the whole supply chain and our aim is to provide customers with the most reliable, efficient and predictable end of life solution, delivered at the lowest cost with no compromise on best-in-class HSE performance."

Innovation, continuous improvement and investment

“Innovation in decommissioning through continued investment in research, development and deployment of technology will maintain and enhance supply chain capability.

“In our relentless pursuit of excellence, we continue to invest in our equipment to ensure we remain at the forefront of what we do. This commitment to innovation and continuous improvement has led to recent enhancements to our subsea cutting solutions portfolio in order to solve our customers’ operational challenges.

“Our recent acquisition of WeSubsea has also bolstered our decommissioning capability, complementing our extensive range of proprietary and third party dredging, cutting and ROV tooling solutions and services.

“Furthermore, we invested in a new technology and service facility based in Aberdeenshire, UK, last year enabling us to fully integrate our service offering and provide a more efficient and streamlined service for our customers. The new facility has doubled the capacity of our previous site to accommodate our growing fleet of equipment and enabled the development of more bespoke technologies to support our customers’ unique project requirements."

Centre of excellence capability deployed internationally

“Since our acquisition of UCS in 2019, Ashtead Technology’s ability to bring a decommissioning capability to international customers has significantly increased.

“Drawing on a tried and tested project management model which combines our centre of excellence expertise in the UK with our bolstered international operational capability, we have recently executed multiple successful projects in the Middle East, Asia and West Africa. Furthermore, we have laid the foundations for delivering further complex, multi-service decommissioning projects across these regions, as demand requires."

Sustainable decommissioning

“Decommissioning is an inherent part of the energy transition agenda with new ways of repurposing and reusing infrastructure being explored. As a proactive participant in the energy transition, Ashtead Technology continues to work with industry partners and the supply chain to support the development of new technology and methodologies to improve efficiency and reduce cost and safety risk in an environmentally responsible manner.”

Ashtead Technology is a leading international subsea equipment rental and solutions provider for the global offshore energy sector

Richard Lind

DECOM NORTH SEA announces new leadership team

Decom North Sea, the membership organisation focused on the global late life and decommissioning sector, has officially announced the appointment of a new leadership team.

Following a period as interim, Sam Long has been confirmed as the organisation’s Chief Executive Officer with previous chair of the DNS board, Callum Falconer, joining him in the role of Operations Director.

Mr Long, who has been active in the international energy industry for 20+ years with companies including Wood, Petrofac, Baker Hughes and Aker Solutions, brings a career-long focus on decommissioning, well abandonment, late life asset management and the ongoing need to decarbonise the upstream oil and gas industry.

Mr Falconer, who has been involved with Decom North Sea since its launch as both member and

CESSCON DECOM launches new decommissioning hub in Aberdeen

CessCon Decom has launched a decommissioning hub at the Port of Aberdeen’s £400 million South Harbour expansion, creating up to 50 new jobs.

The new hub is located within the Crathes Quay at the South Harbour and delivers dismantling, recycling, and reuse services with a key focus on subsea infrastructure. The facility has been established between CessCon and the Port of Aberdeen, which aims to establish Aberdeen as a centre of excellence and port of choice for the offshore decommissioning sector. The facility complements and expands the decommissioning services currently offered at CessCon’s Energy Park Fife Decommissioning Facility.

The South Harbour decommissioning hub offers heavy lift zones, impermeable concrete dismantlement and processing areas, water collection and treatment facilities, material storage areas, offices, and canteen facilities.

non-executive director, has a track record reaching back to the early days of North Sea decommissioning. Since this time he has been instrumental in leading and informing the industry’s approach to decommissioning from a number of perspectives, including as Decommissioning Manager of operator Marathon Oil and as CEO of the Dundeecom partnership.

Supported by the organisation’s board of directors and executive team, the newly-formed leadership duo is poised to implement a strategy of growth and diversification, reflecting the evolving global energy landscape, and in particular the role of late life and decommissioning in the journey towards net zero and beyond.

Mr Long expands: “Our growth and ambitions have to be in line with the needs of our membership, as they also diversify in scope and geography. Our fundamental commitment to the sustainability of the decommissioning sector remains firm, and the relevance of late life and

CessCon is committed to the circular economy and the reuse and repurposing of equipment is a primary objective on all projects. The company has a minimum target on all projects of 98% reuse and recycling (by weight) of all material and has achieved over 99% reuse and recycling on several projects to date.

Lee Hanlon, Chief Executive Officer, CessCon Decom, said: “The new facility is capable of handling turnkey decommissioning projects and the associated vessels. All services including offload of structures, NORM and hazardous waste removal, dismantlement, recovery of items for reuse, and separation to fraction level will be completed at the facility, with recyclable materials transported from the quay to Europe for recycling into new products.

"The substantial laydown, processing areas and water depths allow us to accommodate vessels up to 300m in length. With direct

decommissioning to a successful, efficient energy transition cannot be understated, particularly in terms of the decom sector’s future security.”

Mr Falconer adds: “The Scottish Government has well-documented ambitions to position Scotland as a Global Energy Hub, not least via a commitment to the North Sea Transition Deal. The stages of transition itself are clear – from oil and gas, to decommissioning, renewables, CCUS and hydrogen. Our role is to facilitate the successful creation of a best-in-class, futureproofed and truly exportable decommissioning sector against this context.”

access to the North Sea, the facility is well placed to service the growing decommissioning market in parallel with our Energy Park Fife Decommissioning Facility in Methil, Fife.

“The move is the latest stage in our plans to capitalise on the huge North Sea decommissioning market. Our ongoing project to decommission, reuse and recycle Spirit Energy’s Morecambe Bay DP3 & DP4 platforms at our Energy Park Fife facility is going very well and with further projects in the pipeline in the UK, and the development of our new Anson International yard in Brunei, South East Asia, we are on route to achieve our growth strategy.”

Callum Falconer and Sam Long

Lee Hanlon and Bob Sanguinetti

Established wells expertise key to future decommissioning ventures.

Decommissioning projects commonly present complex challenges and often experience delays as a direct result of the reliability of ageing existing cranes, or not having suitable coverage over a specific project working area.

To overcome this, Brimmond’s specialist inhouse engineering department has developed a suite of rental marine crane packages to be fully modularised into multiple components, for transit to and from platforms. Modules remain within the platform cranes de-rated lifting capacity and fully assembled in-situ to remove any reliance on the existing ageing platform cranes.

The Aberdeenshire based company have joined forces on a number of high-profile decommissioning projects including ‘Dunlin Alpha’and ‘Brent Charlie’ platforms for well Plug and Abandonment (P&A) as well as various vessel mattress recovery scopes over recent years.

Modular Packages are fully assembled and commissioned insitu by our experienced team of offshore technicians with an objective to be as self-sufficient as possible avoiding reliance on existing platform cranes. During assembly our cranes are fully supported with a frame and sections lifted into assembly positions using provided spreader bar frame.

Brimmond’s extensive operational experience on mattress recovery projects allows for recovered mattresses to be stacked higher and more efficiently. Focusing solely on recovered

LIFTING DECOMMISSIONING SOLUTIONS

materials the rental crane can safely and efficiently manoeuvre and stack concrete mattresses on deck. Cranes can also be provided with pipe handler attachment for relocating pipe sections and we also offer Clamshell Bucket attachments to assist with any mattress debris on deck.

Brimmond’s solution results in a reduced number of port calls and a decreased project cost.

“Brimmond were able to install our modular crane packages in technically challenging offshore locations on both Dunlin Alpha and Brent Charlie Platforms. On the Fairfield Platform project our crane package with its 21.47 meter outreach and two 45kW Electric HPU’s were installed on a movable skid beam system so could be relocated closer to intended working area at different phases throughout project. Our crane package contributed to our clients successful campaign, fully maintained for the duration of the rental by our own experienced technicians and operators.”

Paul Dingwall, Technical Sales Manager.

All Brimmond rental cranes can be modified to suit specific Decommissioning projects and provide Load Cells, Remote Control, Pedestal Skid Base, Stage 2 Crane Operators/Technicians as well as Electric HPU’s. Equipment can also be provided for use within a Hazardous Environment and certified to Norksok Z015 when applicable.

Brimmond specialise in the design, manufacture, rental and repair of lifting, mechanical and hydraulic equipment for industry and have a successful track record of providing lifting solutions covering a wide range of decommissioning activities and work scopes.

and repair of lifting, mechanical

equipment for industry, from our base in Aberdeenshire, Scotland For more information visit www.brimmond-group.com

UNLOCKING THE OPERATIONAL

TRILEMMA

Real-time condition monitoring of infrastructure has its limitations. Many companies do it, some better than others. If done well, it can be a valuable solution enabling asset owners to identify potential issues before they become problems, providing time for a response or avoiding unplanned shutdowns. But the value stops there, because owners still have an issue they need to spend their hard-earned cash on to fix.

Proserv looks at the digital technology space through a different lens. We believe real-time condition monitoring, on its own, doesn’t deliver enough value to those owners and operators who want to be leaders. That is why our focus has shifted. We do not assess the short-term condition of equipment but rather the real-time performance and life expectancy of an asset relative to its intended design life and operational strategy.

Delaying decom

If you look at the history of the energy industry, most assets have had their intended operational life extended. There is an entire supply chain dedicated to it for oil and gas. Offshore wind will be no different. Turbines that are functioning today will be running for at least five years beyond intended design life. In fact, because decommissioning costs have been greatly underestimated, a race to be last could unfold. A whole new supply chain needs to develop before the costs of offshore wind decom reach what experts consider realistic.

But that’s not all. The UK government is grappling with the biggest energy challenge it has faced in history, known as the Energy Trilemma. The UK can take huge credit as a world leader in offshore wind. However, within the UK and Europe, it is estimated 600 offshore wind turbines will be due for decommissioning by the end of 2030. This poses a challenge: is the strategy to decommission and replace current assets as they reach intended design life or is the UK going to lead the way with advanced life extension technologies?

If the UK is to meet carbon emission objectives, removing green energy capacity is counter intuitive. In addition, the capital investment for these assets is already sunk

Knowing where you are on your asset life trajectory is one thing, being able to actively and dynamically change it is quite another. The key to that is the control system set points and here is where this fits into our strategy at Proserv, as independent, agnostic controls specialists.

and rising interest rates and geopolitical inflationary pressures are rapidly increasing the cost of new turbines. So, a perfect storm is brewing around offshore wind life extension. Those who adopt technologies targeting this problem earliest will be the ones who prosper.

Operational Trilemma

Offshore wind operators have a Trilemma of their own. Power, availability and life of a wind farm are the three factors they must manage. To do so effectively, good decisions have to be made using data. It is for this reason that Proserv has shifted focus from the limitations of straight condition monitoring to visualising the remaining life of turbines in real-time.

Can you imagine a world where owner operators can see, in real-time, how much life each turbine has left? Immediately, they would be empowered to make data driven strategic decisions to maximise return on investment. This is a vast contrast to what they experience today where owners hope they are making the right decisions based on the limited information they have accessible, or they turn to an expensive consultancy charging top dollar. In the past, oil and gas operators had no alternative, because the data and technology wasn’t available, but the maturity of new technologies means offshore wind can choose a different path.

Optimisation methodologies have been around for years in the industry but they have three main flaws. Firstly, they require large numerical models involving heavy engineer resource: this is slow, costly and, worse still, the behaviours of the turbines change over time, meaning this is a constantly iterative process if it is to be effective. Secondly, because of their numerical model nature, they’re not easily scaled in a wind farm application due to site specific conditions. Thirdly, these solutions are “OEM closed” meaning only that specific OEM can perform any task.

Self-learning and dynamic

Proserv, with our controls technology expertise and collaborative approach to innovation, is changing this. Our tie-up with Ortomation is just one example where the real-time optimisation (RTO) solution is self-learning and dynamic in determining the appropriate set points in a control system, relative to strategic objectives at any given time. Maximising power vs maximising availability vs maximising life has never been visible or possible in this way. All thanks to the application of digital technology to a very old energy industry problem.

These are the real digital technologies of the future. Innovation to address one of the sector’s biggest and oldest challenges – cost-effective asset optimisation and life extension.

While this technology is disruptive, those that have the courage to adopt early will be rewarded by gaining a competitive advantage over other owner operators. Proserv is seeing this first-hand right now with our ECG™ holistic cable monitoring technology. We are solving the Operational Trilemma through strategically driven disruptive technologies delivering practical results.

Stuart Harvey, VP, Digital Innovation, Proserv explains how RTO solutions could empower asset owners and support life extension strategies.

Stuart Harvey, VP, Digital Innovation, Proserv

We improve the reliability, integrity, efficiency and productivity of critical infrastructure with industry-leading controls technology.

more information

A Proserv technician surveys an offshore wind farm

SPONSORED BY

www.leyton.com

The UK’s largest innovation funding consultancy

Leyton is an international consulting firm that helps businesses leverage financial non-dilutive incentives to accelerate their growth and achieve long lasting performance.

We simplify your access to these complex incentives. Our combined teams of highly skilled Tax and Technical specialists,

enhanced with cutting-edge digital tools developed internally, maximize the financial benefits for any type of businesses.

With compliance always front of mind, we have been delivering optimal services for our clients for over 24 years. This provides peace of mind that you will always receive the maximum benefit, without taking risks.

R&D IN OIL & GAS

The R&D Tax Credits scheme allows businesses in the oil & gas industry to reduce their corporate tax bill or receive a tax refund based on a proportion of their R&D expenditure.

The scheme can be used by any limited company that is liable for corporation tax in the UK and meets the necessary R&D criteria; it can even be used on unsuccessful projects.

The work that qualifies for R&D tax relief must be part of a specific project which aims to make an advance in its field.

If you are developing a new process, a new product or service, or perhaps even improving an existing one, R&D Tax Credits provide an often vital cash injection for businesses. Since 2010, we have helped thousands of customers successfully claim more than £1 billion in R&D tax relief.

R&D IN THE OIL & GAS INDUSTRY

WORKING WITH LEYTON

Leyton is an international consulting firm that helps businesses leverage financial non-dilutive incentives to accelerate their growth and achieve long lasting performance.

We simplify your access to these complex incentives. Our combined teams of highly skilled Tax and Technical specialists, enhanced with cutting-edge digital tools developed internally, maximize the financial benefits for any type of businesses.

With compliance always front of mind, we have been delivering optimal services for our clients for over 24 years. This provides peace of mind that you will always receive the maximum benefit, without taking risks.

Appreciable enhancements to the electrical control infrastructure of a launch and recovery system, with extensive system integration to the auxiliary features of an offshore support vessel

Development of novel installation methodology for a first-of kind subsea energy storage and remote power generation system

Appreciable improvement to the accuracy and safety of existing underwater abrasive nozzle cutting processes, through the development of a magnetic holding mechanism for precise alignment and reduced diver intervention

Appreciable improvements to the efficiency of an existing ROV inspection process, through the development of a small arm for the repositioning of the inspection probe without the need for ROV

Development of a novel deployment system to allow for oil well abandonment using a construction support vessel, allowing for improved operational efficiencies as opposed to the existing standard procedures which utilised larger, more expensive mobile offshore drilling units

work closely with key Oil & Gas organisations

RE-GEN ROBOTICS recognised leader in no man entry tank cleaning

a tank. Re-Gen Robotics’ tank cleaning robotic system is designed to gain access through a standard 600mm manway, using externally fitted hydraulic ramps.

The fully automated, highly mobile, remotecontrolled combination of specially designed 3,000 PSI jetting water nozzles, powered by a high-pressure low flow pump and a powerful 4,800 c/m3 vacuum, plays a vital part in the cleaning process.

The robots are waterproof and can work fully submerged, they have the power to clean the largest oil tanks with minimum hassle.

Re-Gen Robotics has been helping oil majors maintain their asset performance since 2019 and their experience encompasses every tank design and type of material, crude, petrochemical, black oil, white oil, and distillate.

The company supports oil terminal operators to cope with the challenges of maintaining the integrity of their assets. In order to maximise the value of their tank cleaning services for a facility owner, they offer bespoke tank cleaning solutions that focus on minimising project costs, downtime, risk, and residual waste.

Their award-winning tank cleaning systems can tackle the most difficult and complex projects, any size of tank can be cleaned, including complex high-volume projects in tanks over 50 metres in diameter.

The company has also been engaged to finish projects where other tank cleaning service providers have failed.

Re-Gen Robotics offers a one-stop shop for asset maintenance, utilising no man entry robots to eradicate time spent by personnel cleaning tanks in hazardous environments. By deploying patented, state of the art technological equipment, they enhance safety, efficiency, and cost savings for our clients.

The team is highly trained, experienced, and focused on tank cleaning and waste minimisation. They understand the challenges clients face and can mobilise robots at short notice to carry out cleans for any size or condition of tank, that are up to 70% faster than manned cleans.

Re-Gen Robotic offers the latest, most advanced no man entry cleaning technology.

Their highly standardised and selfcontained operation process means that the tank cleaning schedule is always very precise - so clients can reasonably estimate the downtime needed to clean their tanks.

Re-Gen Robotics has now eliminated over 11,000 hours of CSE cleaning in tanks. Over 40 tanks including white oil, crude oil and distillate tanks have been completed for oil majors such as Shell, Valero, Phillips 66, and Exxon Mobil. Further contracts are ongoing, and the company is in talks with US terminal operators.

The entire tank cleaning operation is recorded on CCTV from the ATEX cameras and is made available to the client upon completion of the works. All files are date and time stamped to ensure the process is traceable for auditing purposes.

A record of gas detection readings is also issued on completion of each vessel cleaning, produced by the onboard gas monitoring equipment. The intelligent onboard truck telemetry system collects data that can then be aggregated and analysed to optimise the process. The combination unit provides real time information on all key parameters and is accessible to clients.

Proven experience and success using the most advanced devices and techniques available allows Re-Gen Robotics to engineer and customise solutions for each client project to save time, improve productivity and meet their unique requirements.

Re-Gen Robotics is saving terminal operators millions of pounds and giving them a compelling reason to upgrade to their bespoke, no man entry tank cleaning solutions.

They are choosing Re-Gen Robotics’ tank cleaning service as their first and only choice because the company’s good industry practice and prudence is derived from operational experience that no other company can boast. Compared to anything else on the market, their tank cleaning solutions are risk free and far more efficient and economical.

The entire tank cleaning system can be set up in two hours, which is a fraction of the time required for human crews to prepare to enter

Re-Gen Robotics offers four main robotic tank cleaning services. Providing solutions to a range of companies across the UK, Europe, and the rest of the world. For more information visit regenrobotics.com

SPONSORED BY

Who is Sword?

Graeme Humphrey is the customer engagement director at Sword’s engineering-led application development business, producing highquality bespoke software systems. With over 25 years experience in software engineering, Graeme and his team focus on developing solutions that help energy organisations to make data driven decisions.

www.sword-group.com

As the North Sea’s largest provider of data and digital services, Sword focuses on solving the industry’s most critical business technology challenges by enabling our clients to capture, manage, and utilise data to make informed decisions. This is supported by technology adoption and people engagement, together with modern ways of working to give confidence that the right decision is made every time.

DATA DRIVEN DEVELOPMENT

in the drive to be data driven. We help link legacy systems together with modern technology, building bespoke solutions that unlock useful information from a myriad of systems. This enables legacy information to be used in realtime to bring new insights that inform business activity.

Process Improvement

Another key driver behind software development is the implementation of digital processes to improve operational efficiency. As organisations grow, internal office processes suited to an SME, such as simple payroll or invoice systems, don’t always scale to suit evolving business requirements without active intervention.

Microsoft Excel is a great tool, but heavy reliance on it for business-critical activity can become a hindrance to decision making as organisations grow. For example, sales pipelines are often managed in Excel, but as businesses expand, multiple spreadsheets can exist for each region or business unit.

Data Driven Development

Organisations across the energy industry are pivoting to become data driven, harnessing the power of their data to make informed business decisions. However, we all know that decisions are only as robust as the underlying data and the systems used.

There is an astonishing amount of old software and products in the energy industry that have become business critical, but lack the capability and resilience that modern technology brings today. Increasing focus on getting the right foundations in place is helping forward-thinking energy organisations to become data driven.

At Sword, we help our energy customers avoid the ‘garbage in, garbage out’ trap by ensuring the right data is collected, structured, accessible, and in the right shape to make informed business decisions. We often develop new applications (apps) to integrate into all aspects of a business when off-the-shelf software solutions don’t quite fix a customer’s precise problem, from legacy issues bringing unwelcome risk into operations, to inefficient processes making every day tasks complicated or prone to human error.

Connecting Legacy Information

Harnessing the value of legacy data and information is a key driver behind new software development. Many legacy systems in our industry over the years have become business critical, but are no longer reliable or understood by current employees. Often the individuals who built or managed these systems have moved on, therefore the ability to support them becomes a challenge.

Reliance on unsupported legacy systems can introduce risk into operations, that could ultimately impact on downtime and operational efficiency.

By auditing systems and their dependencies, we then make recommendations for technical upgrades, consolidation and can build new apps to replace those creaking at the seams. We can help take legacy systems from rusty to robust, well-engineering solutions that stand the test of time.

Information frequently resides in disparate, on-premise, aging systems that are unable to connect without manual intervention, which organisations identify as missed opportunities

For more information, visit www.sword-group.com

Organisations gradually realise that it’s difficult to get a real-time view of forecast revenue, or that there are missed opportunities from the inability to generate insight from sales trends, which mean basing recruitment decisions on this data could be subjective.

We can capture data in systems that are designed to fit your needs, enabling organisations to find trends and base decisions on solid foundations, such as investing in people with special skills when the data shows a clear upward trend in demand for that skillset.

Becoming Data Driven

It is also common in our industry for organisations to recognise the need to replace paper-based processes and modernise ways of working. Reaching out to a professional, experienced organisation to fix a problem plaguing progress, provides a consultative approach with clear plans, roadmap, and visualisation of the solution.

Organisations can only become data driven with the right foundations, by investing in solid fit-for-purpose platforms that integrate across office functions and operations. Insights and analytics from reliable systems enable informed data driven decisions to be made on everything from recruitment investments to pinpointing precise drilling locations.

Graeme Humphrey

FIBRE OPTIC TRAINING for the onshore, offshore and renewables markets

RCP - Instrumentation and Control

System specialists have made significant investment in fibre optic equipment such as fusion splicing machines, mechanical splicing kits, fibre optic ovens, optical power meters, optical microscopes and polishing equipment to terminate and test fibre optic cables, connectors junction boxes and patch panels to a very high standard.

In 2021 a dedicated fibre optic workshop was set up at our Blackburn facility to provide fibre optic training to the onshore, offshore and renewables markets.

Fibre Optic Training includes

Fusion Splicing of single mode and multimode cables using Fujikura fusion splicers, construction of bespoke fibre optic cables and connector sets, construction of circular plug/socket connectors for hazardous area use. ATEX/IECEx zone 1 connectors, cables made up with pre-potted glands and tails to facilitate ease of fitment to drilling platforms, rigs offshore and renewable assets.

Mechanical splicing – Corning and Huber + Suhner connectors, ST, SC and LC, insertion loss and cable loss measurements, testing connectors and cables for insertion loss and return loss. OTDR testing using Fujikura machines.

The format of the course starts with the theory of Fibre Optics. Safety when using Fibre Optics, FO cable selection and connector types. Stripping fibre optic cables and preparation including the use of fan out kits, the use of fibre breakout boxes and fibre optic plug socket connectors and an understanding of loss budgets for fibre optics.

Delegates will learn how to manually splice using a Corning Kit with ST, SC and LC connectors. They will learn how to measure insertion loss of splices, connectors and cables. The delegate will use a fibre optic power meter. There will also be an introduction to fusion splicing.

The training course consists of both theoretical and practical elements with approximately 75% of the course being practical exercises where the delegates get to practice the skills taught.

By the end of the course each delegate will be able to identify different types of fibre cable for use on/offshore, select the correct type of cable and connector for the application in hand, prepare and manually splice a connector onto a fibre optic core(mechanical splice), test the integrity of the connector and measure the insertion loss of the cable or cable system.

The delegates will be able to fault find and repair fibre optic cables and connectors, prepare and splice a connector onto a fibre optic core known as fusion splicing.

The course material can be created bespoke to a company’s specific requirements. The course runs over 2 days.

A certificate of competence will be issued to the delegate's employing company on successful completion of the course.

RCP provide the following site services on or offshore

Fusion Splicing of single mode and multimode cables – Fujikura fusion splicers, Construction of bespoke fibre optic cables and connector sets, Mechanical splicing –Corning and Huber + Suhner connectors, ST, SC and LC. Construction of bespoke fibre optic cables and connector sets – Insertion loss and cable loss measurement, testing connectors and cables for insertion loss and return loss.

SPONSORED BY

Step into a safer environment www.scotgrip.com

RenewableUK reacts to the Government’s latest energy plan…

As you’ll know, the new Energy Price Guarantee has capped bills from 1st October onwards at £2,500 per household. In addition to the £400 energy bill discount for available for all, official figures suggest the scheme will save households an average of £1,000 a year on their energy bills for the next two years. Action was also announced to reduce the cost of energy over time, including a new Energy Supply Taskforce to negotiate prices with suppliers and a joint scheme between HM Treasury and the Bank of England to explore liquidity requirements faced by energy firms operating in the UK.

In an attempt to further accelerate domestic energy supply, Prime Minister Liz Truss also announced the launch of a new oil and gas licencing round expected to include more than 100 new licences, as well as lift the moratorium on UK shale gas production, and continuing progressing nuclear power production. Energy production in the North Sea was included as well, with a spotlight on accelerating the transition of oil and gas to clean energy sources in the area.

The PM also indicated that she would lift the three-year fracking ban in England and announced a review of the UK’s 2050 net zero emissions target to ensure that ambitions were not putting ‘undue burdens’ on businesses or consumers.

Though some of these declarations have been met with huge positivity and relief, some have ignited debate from various groups among the UK population. For example, there are questions over who will benefit most from the new energy cost cap – those who are financially better off may receive the greatest advantage.

The focus on a short-term solution that will drive down costs in the immediate future

High quality, industrial anti-slip safety products.

For over 30 years, we’ve designed and manufactured market-leading anti-slip safety products that hugely improve safety standards on stairways, walkways, decks, ladders, ramps, gangways and pipes, in a range of industrial settings.

is understandable, given the continued increases in cost-of-living, but this could have a significant bearing on the development of the energy sector – as well as energy costs and availability in the years to come. Rather than prioritising traditional industries for investment, money may be better spent by funding the transition of traditional industries such as oil and gas to greener energy options. In the long-run, this would better provide the industry with the funding it needs to deliver cost-competitive energy to the consumer.

The return to fracking could also have a profound impact on the natural environment, local communities and the country’s green energy future. The practice was halted in 2019 following an earth tremor caused by fracking for shale near Blackpool. Not only does this cause concern for residents and businesses within close proximity to fracking sites, but there is also uncertainty about whether a shale gas industry could be viable. Experts are questioning whether there would be enough shale to make a significant impact on energy supply or price and how quickly this would be seen in real terms if production were to begin.

It is crucial that we maintain momentum across the green energy sector to stay on course and meet net zero ambitions. Many in our industry have already suggested that we could surpass the targets set by government with sufficient support to facilitate accelerated growth.

Indeed, the new Prime Minister aims for the UK for be a net energy exporter by 2040 – this would have a much greater impact if we could export more green energy.

RenewableUK enthusiastically welcomes the new Government Taskforce and any new initiatives designed to look closer at the opportunities for growth within the renewable energy sector. Our industry and Government are working together to help suppliers and developers lay strong foundations which will put the UK in a much stronger trading position for the future.

Though only time will tell how much of a difference the new energy price cap and other measures will have on rising prices, inflation and the cost-of-living crisis, renewable energy will remain an important part of the UK’s future.

For more information about RenewableUK, please visit www.renewableuk.com

New £40m wind farm near Darvel gets green light

A new £40m onshore wind farm has been granted planning permission by South Lanarkshire Council.

Developers Banks Renewables have won approval for six large turbines at Mill Rig Wind Farm near Darvel.

The project, which straddles the South Lanarkshire and East Ayrshire border, will have a capacity of about 36MW - enough to power about 21,000 homes.

Banks Renewables said the development was "on course" to become operational within three years.

In a statement, the firm said the project would displace more than 18,000 tonnes of CO2 annually from the UK's electricity supply gridthe equivalent of removing almost 7,000 petrol cars from the road.

The Hamilton-based company plans to set up a local community fund which it has claimed will generate up to £5.4m in revenue over the expected 30-year lifetime of the project.

It has also estimated that the local area will benefit from local contracts worth £11.7m during construction.

Robin Winstanley, sustainability manager at Banks Renewables, said: "With the next steps of detailed design and construction, Mill Rig Wind Farm is on track to help Scotland achieve its ambitious net zero targets, bolstering the UK's energy security by producing green electricity by 2025."

Montrose ZeroFour enterprise hub moves forward with appointment of key contractors

Crown Estate Scotland’s ZeroFour innovation hub at Montrose has taken a major step towards its aim of supporting clean, green economic growth in Angus and the northeast, by awarding seven key contracts to four Scottish-based companies.

The delivery team, which now comprises an architect, cost consultant, infrastructure engineer, landscape architect, principal designer, planning consultant and project manager, will work to transform the 123-acre estate into a purpose-built, innovation park that will offer modern infrastructure, green energy solutions and facilities amid the beauty of the Angus coastline.

The construction phase will support a significant number of jobs and apprenticeships and, ultimately, ZeroFour aims to stimulate hundreds of new jobs, training and re-skilling opportunities, supporting Angus Council’s goal of creating greater diversity of employment in the area.

As part of this, Crown Estate Scotland and Dundee and Angus College have partnered to inspire people of all ages to consider STEM (Science, Technology, Engineering and Mathematics) opportunities at ZeroFour.

The companies appointed are architect NORR, project manager and cost consultant Turner & Townsend, infrastructure engineer Cundall and landscape architect and planning consultant Ironside Farrar.

Jamie Macfarlane, Built Development Manager for Crown Estate Scotland, said: “Having this team in place is an important step towards the next stage of this exciting development. ZeroFour is perfectly positioned to support the burgeoning offshore wind sector and wider blue economy.

“We want to offer a great location for companies looking to create, innovate and thrive in the blue and green economies as well as those who simply want a greener and more sustainable base for their business. The seven companies, which are now onboard, share our vision of making ZeroFour a key part of Scotland’s net-zero future.”

ZeroFour is well positioned to support Scotland’s renewable energy sector, given its location two miles from Montrose Port, 35 miles from Aberdeen and Dundee, and 12 miles from the nearest offshore windfarm.

Offering high quality, flexible space, with innovative, energy efficient design, ZeroFour will provide options for a range of businesses, from start-ups to research and development and large-scale manufacturers. Plans for the hub include amenity space and hotel accommodation with an emphasis on greener spaces and design features, accessible to the wider community, that enhance the natural surroundings.

John Baird, managing director for NORR said: “Montrose ZeroFour is an ambitious innovation park, and we’re delighted to be working with Crown Estate Scotland. As architects, we’ll work collaboratively with the key stakeholders and design team to develop a design which offers quality of space, flexibility in design, sustainability, and be visually attractive.”

Turner & Townsend has been appointed to project manage the ZeroFour development and will work with Crown Estate Scotland to create a flexible Masterplan which takes into account changing needs for office, industrial and commercial spaces as well as considering the needs of technology, enterprise, research and development firms.

It is expected that preparation and infrastructure will start in winter 2022/2023 and serviced plots will be ready for business to access from 2023.

RENEWABLES SPONSORED BY

CONTRACT AWARDS

SPONSORED BY

Infinity Partnership: Your Partner in Business www.infinity-partnership.com

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

Infinity has been a five-time winner at the British Accountancy Awards and has been a three-time finalist at the Scottish Accountancy Awards in recent times.

Petrofac Awarded North Sea Contract Extension By Serica Energy

Under the terms of the agreement, Petrofac will continue with the provision of maintenance execution, maintenance consultancy and metering services to Serica Energy’s Northern North Sea asset, the Bruce platform complex which processes production from its Bruce, Keith and Rhum fields.

The contract, which builds on a relationship with Serica Energy which began in 2018, was enhanced in 2019 to include metering engineering services through the deployment of dedicated onshore and offshore personnel.

Nick Shorten, Chief Operating Officer for Petrofac’s Asset Solutions business, commented:

Petrofac, a leading provider of services to the global energy industry, has secured a threeyear contract extension for maintenance services from Serica Energy.

“For more than four years, our team has been supporting Serica Energy to enhance production and extend the field life of its assets in the UKCS through safe and costeffective maintenance services.

ICR secures long term hire contract with Taqa

hot work permits, making it a cost effective and efficient way of performing repairs. The technology has a long-standing track record, particularly in the North Sea and Norway sectors, but we are now seeing a growing demand for solutions onshore, out with the traditional oil and gas sector as well as our international locations throughout the globe.”

For almost 20 years, ICR’s patented Quickflange technology has built up a proven track record as a leading provider in cold work solutions, offering clients permanent repair options for improving pipeline integrity and flow assurance whilst eliminating the need for welding or hot work with zero emissions generated.

ICR Integrity (ICR), global provider of specialist maintenance, integrity and inspection solutions, has been awarded a long-term hire contract with Taqa Bratani Limited (Taqa). ICR will provide its Quickflange weldless connections for Taqa’s UK-based operations. The contract is for two years with a two-year extension option.

Lindsay Anderson, Head of Sales –Quickflange at ICR, said: “We have been working with Taqa for almost 10 years. Quickflange offers clients permanent repair options minimising downtime or the need for

Safe, cost-effective

With an extensive range, Quickflange is a safe, cost-effective and efficient solution generating an 80% time saving over traditional welding enabling the technology to be used as an emergency solution or for any planned maintenance and repair work.

Headquartered in Aberdeen, ICR operates in global locations with operational bases in the UK, Norway, Abu Dhabi, US and Australia as well as partners in over 25 countries worldwide.

“We look forward to further strengthening our partnership with Serica Energy by building on this approach, and adding additional value through the delivery of predictable, efficient operations.”

McDermott Scores FEED Work On Viva Energy Refinery In Australia

U.S. engineering giant McDermott International has been awarded a Front-End Engineering Design (FEED) contract from Viva Energy Australia as part of its Geelong Refinery project to provide additional desulfurization capabilities.

McDermott said that the award followed the successful completion of the Pre-FEED activity and encompasses early engineering and procurement services to support the project schedule.

Under the contract scope, McDermott will provide FEED services for a new modularized production unit. The unit will produce ultra-low sulfur gasoline with up to ten parts per million of sulfur to meet the proposed changes to Australia's fuel quality standards from the end of 2024. Lower sulfur gasoline will support improved vehicle emissions.

"This award is a testament to our successful execution of the pre-FEED. In this next phase, we will apply McDermott's extensive modularization expertise to ensure quality, reduce cost and maintain the schedule," said Tareq Kawash, Senior Vice President for Onshore of McDermott.

"We look forward to continuing to support Viva Energy Australia's carbon emission reduction goals to provide cleaner fuels and enhance Australia's fuel security."

According to the company, work on the project will be executed from McDermott's engineering center of excellence in The Hague, the Netherlands with support from its offices in India and Australia.

Viva Energy’s Geelong Refinery began operations in 1954. Today it’s one of two refineries remaining in Australia, employing around 700 people, and supplying over 50 percent of Victoria’s and 10% of Australia’s fuel.

The refinery can process up to 120,000 barrels of oil per day, manufacturing petrol, diesel, LPG, jet fuel, avgas, bitumen, specialty solvents for a wide range of industries, and low aromatic fuel to support Australia’s Federal Government’s petrol-sniffing prevention program.

Aker Solutions and Subsea 7 have secured contracts from Aker BP for the Trell & Trine field development, located in the Alvheim area of the Norwegian North Sea. The project involves a subsea tie-back of approximately 21 km to the Alvheim floating production storage and offloading (FPSO) vessel, via the existing East Kameleon subsea manifold.

Under the contract, worth up to $155m, Aker Solutions will deliver a subsea production system including three horizontal subsea trees, two manifolds, control systems, and close to 30 km of subsea umbilicals, as well as associated equipment and installation work. Final deliveries are scheduled for the first quarter of 2024.

Meanwhile, Subsea 7’s contract scope, estimated as worth between $50m and $150m, includes engineering, procurement, construction and installation (EPCI) of the pipelines, spools, protection covers and tie-ins using key vessels

Adnoc awards $548m contract for gas line at Lower Zakum field

Abu Dhabi National Oil Company has awarded a $548 million contract to build a new main gas line at its Lower Zakum field as part of efforts to enable gas self-sufficiency for the UAE and cater to increasing global energy demand.

The contract will increase Lower Zakum field’s gas production capacity to 700 million standard cubic feet per day from 430 million, Adnoc said on Monday.

The engineering, procurement and construction contract was awarded by Adnoc Offshore to National Petroleum Construction Company after a competitive tender process.

The new pipeline will support the increased volume of associated gas produced by the Lower Zakum field as its oil production capacity increases to 450,000 barrels of oil per day by 2025, Adnoc said.

The project is expected to be completed in 2025.

"This contract award will enable us to produce more gas as we increase production capacity from Lower Zakum field," said Yaser Almazrouei, Adnoc's upstream executive director.

"This will support our integrated gas masterplan, which is driving competitive gas recovery to enable gas self-sufficiency for the UAE and industrial growth, while also helping to meet the increasing global demand for energy." Natural gas is playing an increasingly

from its fleet. Project management and engineering will be carried out in Stavanger, Norway, while fabrication of the pipelines will take place at the company’s spoolbase at Vigra. Offshore operations should take place in 2023 and 2024.

Aker BP and licence partners Petoro and Lotos Exploration & Production Norge

important role in the energy transition as both a feedstock and a fuel since it burns with significantly lower-carbon intensity than coal.

In July, Adnoc announced its second discovery of natural gas this year in the first exploration well in Abu Dhabi’s Offshore Block 2 exploration concession operated by Eni.

The discovery from a new, deeper reservoir indicates one trillion to 1.5 trillion standard cubic feet of raw gas, almost doubling the discovered field volume, Adnoc said.

It builds on the initial finding in February 2022 from a shallower target, taking the total from this single well to between 2.5 trillion and 3.5 trillion standard cubic feet.

As part of the latest contract, a new subsea pipeline will be constructed that will run 85 kilometres from Zakum West Super Complex to Das Island.

It also includes provisions to construct, install and test a new platform at the complex, as well as a new gas-receiving centre at Das Island.

More than 75% of the award value will flow back into the UAE economy under Adnoc's In-Country Value programme and job opportunities will be created for Emiratis by the contractor, the company said.

“Lower Zakum is a strategic asset for Adnoc and the UAE and working with our international partners, we will continue to responsibly unlock and maximise value from the field in line with Adnoc’s 2030 smart growth strategy," said Ahmad Al Suwaidi, chief executive of Adnoc Offshore.

"This award is an important part of the long-term development plan for the field and will help

CONTRACT AWARDS

submitted a plan for development and operation (PDO) for Trell & Trine to the Ministry of Petroleum and Energy earlier this week. It is the third PDO submission in the Alvheim area in just one year, following close on the heels of Frosk and Kobra East & Gekko. Total investments are expected to be around $700m, with production beginning in the first quarter of 2025.

strengthen Adnoc’s position as a leading low-cost and low-carbon provider of energy for customers around the world.”

Adnoc Offshore has a production capacity of about two million barrels of oil and about three billion standard cubic feet of gas per day. Its operations extend across eight fields, six artificial islands, three natural islands and eight offshore super complexes.

The company's international concessions partners include ExxonMobil, Inpex-Jodco, CNPC, TotalEnergies, Cepsa, OMV, Eni and Falcon.

Including the latest contract, Adnoc Offshore and its international partners have invested more than $5 billion in recent weeks in the long-term development of Abu Dhabi's offshore operations, the company said.

That includes contracts worth more than $3.4bn awarded to Adnoc Drilling to accelerate offshore growth activities and a $1.1bn contract awarded to Adnoc Logistics and Services to improve offshore operations.

CONTRACT AWARDS SPONSORED BY

Aker Solutions and Subsea 7 awarded new contracts with Aker BP

SPONSORED BY www.normanbroadbent.com

We have a simple and straightforward objective: to help our clients manage and successfully drive change, mitigate risk, grow, and succeed.

Chris assists investors, developers, asset owners and service providers with executive recruitment (C-suite / SVP / Director levels), leadership assessment and planning proactively for future challenges around human capital.

Prior to Norman Broadbent, Chris worked for a smaller boutique search firm and gained broad experience supporting clients across EMEA, the Americas and Asia Pacific within the following sub-sectors: utilities (water/gas/electricity), offshore/onshore wind, nuclear, hydrogen, CCUS, waste to energy, conventional power, energy storage, EV infrastructure and industrial engineering.

International subsea equipment rental and solutions specialist Ashtead Technology has bolstered its leadership team with the appointment of Bob Gillespie as Commercial Director.

The appointment underlines the company’s strategic growth plans as it looks to strengthen its leading position in the global offshore energy market, expand its geographical footprint and enhance its product and service offering across its three service lines – survey and robotics, mechanical solutions and asset integrity. Mr Gillespie brings a wealth of experience to the role having held various senior positions in the offshore renewables and subsea oil & gas sectors, most recently with Havfram where he was UK Managing Director. Prior to that, he held senior commercial positions with Fugro, TechnipFMC and McDermott before becoming UK Managing Director of DOF Subsea.

In his new role, Mr Gillespie will work with the senior management and regional teams to further strengthen existing capability across Ashtead Technology’s core markets and drive forward the company’s growth strategy.

Allan Pirie, Ashtead Technology’s CEO, said: “We are thrilled to welcome someone of Bob’s stature to the team which is a great endorsement of our strategy and ambition."

Lene Thorstensen has been appointed to head up AGR’s wellsite and operations geology business in the Norwegian Continental Shelf, following the retirement of her predecessor. Engineering consultancy AGR has promoted the wellsite geologist, beforehand assistant crew chief, following the retirement of Finn Johansen, who has led the division for nearly three many years. Mr Johansen will proceed to work as an advisor for the division till the tip of this 12 months earlier than he formally retires in 2023. Ms Thorstensen is an engineer and wellsite geologist skilled specialising in all sorts of formation analysis. She attracts on 11 years’ expertise within the oil and gasoline business and a Grasp’s in geology from the College of Tromsø, with expertise starting from exploration, high-pressure excessive temperature wells (HPHT) to manufacturing wells. She started her profession within the Royal Norwegian Navy coaching to be an officer and studied pre-engineering on the Royal Norwegian Naval Academy, later becoming a member of AGR’s wellsite and operations geology division – then operated beneath the First GEO model – in 2014, having held comparable roles with Baker Hughes.

The global independent service provider for critical rotating equipment, announces the appointment of Patricia Gonzalez as Executive Vice-President for the West Hemisphere.

Patricia will have regional responsibility for the strategic and operational leadership of EthosEnergy in the Western Hemisphere, consisting of North and South America. She will report to EthosEnergy’s CEO, Ana Amicarella.

Patricia joins EthosEnergy from Baker Hughes and GE Energy, where she served as the Americas Regional Executive –Turbomachinery Aftermarket Services. With over 25 years of experience in the Energy and Oil and Gas segment, Patricia is a strong customer advocate and has a strategic mindset for growth, operational productivity and cost efficiency, with a personal commitment to talent development.

Patricia will have regional responsibility for the strategic and operational leadership of EthosEnergy in the Western Hemisphere consisting of North and South America. She will report to EthosEnergy’s CEO Ana Amicarella.

4Shell Chief Executive Officer to step down at the end of the year

Shell plc (“Shell”) today announced that Ben Van Beurden will step down as Chief Executive Officer (CEO) at the end of 2022, and that his successor will be Wael Sawan. Wael’s appointment is effective January 1, 2023*, when he will also join Shell’s Board of Directors. Ben van Beurden will continue working as adviser to the Board until June 30, 2023, after which he will leave the group.

Chris Smith, Partner International Power, Renewables & Utilities practice.

2AGR Announces new head of well and operations geology unit

3EthosEnergy Announces Patricia Gonzalez as Executive Vice President, West Hemisphere

1Ashtead Technology announces new senior appointment to their leadership team

Lene Thorstensen

Patricia Gonzalez

Bob Gillespie

Ben Van Beurden

Stena Drilling has set up a wells subsidiary Stena Wells and appointed Dillan Perras as its director. Mr Perras will lead the new company as it delivers fully managed well construction and decommissioning campaigns on behalf of the operator community.

Mr Perras formerly worked at Talisman and successor companies Repsol and Sinopec Resources where he was manager for drilling & completions.

His work has covered all aspects of well operations from engineering and planning through to intervention, drilling, completions and decommissioning. He is a member of Offshore Energies UK Well Decommissioning Group.

Getch Appoints Kathrin Schulz as the Group's European Hydrogen Business Development Director

Geoenergy and green hydrogen company Getech has appointed Kathrin Schulz as the group’s European Hydrogen Business Development Director.

Based in Berlin, she will support Getech’s ambition to establish over 500MW of new assets by 2030 and oversee European expansion, following the acquisition of H2Green in 2021.

Getech is developing a network of green hydrogen hubs, co-located with wind and solar, to decarbonise transport and industrial sectors.

Getech CEO, Dr. Jonathan Copus, said, “Green hydrogen can provide clean power for transportation and industrial sectors that are hard to electrify, as well as energy storage to overcome intermittency and balance supply with demand.

Shell has appointed Wael Sawan, a 25-year company veteran, as successor to Ben van Beurden, the company’s long standing chief standing chief executive.

Sawan will replace Ben van Beurden, Shell’s boss for almost a decade, who will be stepping down at the end of this year. Reports of Van Beurden’s planned departure emerged earlier this month, and Sawan was considered frontrunner to take the top job.

As Shell’s current head of integrated gas and renewables division, Sawan oversees its push into into low-carbon energies as well as its giant gas business.

The Italian oilfield contractor Saipem has appointed General Manager Alessandro Puliti as their CEO and a director following the resignation of Francesco Caio.

Puliti replaces Francesco Caio, who was in the top post last year when Saipem saw more than one-third of its equity wiped out following a backlog review. The company confirmed on Wednesday that Caio had left his role as chief executive and place on the board with immediate effect.

Saipem said that Caio had resigned after the first half-year results were announced and that he had achieved his goal to “reposition and relaunch the company”.

It said that Caio has contributed to the response to all critical issues that arose during the backlog’s review, which was started by the management in relation to projects that had been acquired in previous years.

The company said that its board of directors was unanimous in its decision to appoint Alessandro Puliti” as the new chief executive, and that he would take over all the responsibilities previously held by Francesco Caio.

An expert in petroleum engineering, leadership and strategy, Robert has more than 14 years’ experience within the energy sector. His appointment falls at an exciting time for the service provider as it looks towards increased organisational growth within key markets.

Abercrombie, who studied Electrical and Electronics Engineering while being a professional ice hockey player with the Stavanger Oilers, transitioned into the energy sector in 2008. He joined TCO in 2013, having initially worked as a product manager for its chemical injection product line. From there, he was promoted into senior managerial positions including Vice-President of Global Sales and Chief Operating Officer.

On his appointment, Robert Jay Abercrombie, CEO of TCO, says, “Having worked with TCO for almost a decade, I have seen the impact and benefits that our products and services have delivered for clients across the globe. Success to date has been built on an approach that integrates a high-level of service, with the very latest in technological innovation. In doing so we deliver increased deployment efficiency and enhanced well production while reducing operational risk for our customers.”

TCO is one of the industry’s leading suppliers of completion barrier plugs and advanced downhole chemical injection systems. The business is also one of the largest Tubing Conveyed Perforating service companies in the North Sea, with more than 200 TCP jobs performed since 2012.

Content provided by Norman Broadbent

Saipem appoints new CEO in surprise shake-up

Stena Drilling launches wells subsidiary and announces Dillan Perras as Wells Manager and Director

Alessandro Puliti

9TCO Announces the appointment of Robert Jay Abercrombie as their new CEO

Shell appoints Wael Sawan as new Chief Executive Officer

Wael Sawan

Dillan Perras

Robert Jay Abercrombie

Content

Norman Broadbent

SPONSORED BY

SAFE, SMART & EFFICIENT

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.

Neptune Energy awards major decommissioning contract for Dutch, UK North Sea

It is the first multiregion, multi-well decommissioning campaign award by Neptune to a single rig contractor and will significantly reduce time and costs associated with the work.

Well-Safe Solutions’ WellSafe Protector jack-up rig will carry out the plug and abandonment of at least four subsea and 17 platform wells located in Dutch and UK waters.

Neptune Energy today announced the award of a $30 million decommissioning contract to Well-Safe Solutions, for a campaign covering more than 20 wells located across eight Dutch and UK North Sea fields.

Neptune Energy’s Managing Director in the Netherlands, Lex de Groot, said: “Safely decommissioning assets at the end of their economic producing lives is an important part of our work. We plug and abandon the wells, taking everything with us and leaving the

Allseas Completes Single Largest Offshore UK Decom Deal

Offshore engineering company Allseas has been awarded a major decommissioning contract by TAQA UK for the removal and disposal of multiple Northern North Sea facilities.

Aberdeen-based TAQA manages the UK North Sea exploration and production portfolio for UAE-headquartered utilities and energy group Abu Dhabi National Energy Company.

The engineering, preparation, removal, and disposal contract comprises TAQA’s Eider Alpha, Tern Alpha, North Cormorant, and Cormorant Alpha platforms.

The combined weight of the topsides and jackets to be removed is around 114,000 tons, making this the largest single offshore UK Continental Shelf decommissioning contract scope to date.

Allseas’ task is to remove four platform topsides, three steel supporting jackets and transport to a suitable onshore yard facility for dismantling, with the aim of reusing or recycling 95 percent or more of the materials.

The platforms are located close to each other, some 60 miles north-east of Shetland, in water depths ranging from 500 to 550 feet. All structures

will be lifted and removed to shore as single units using Allseas’ heavy lift vessel Pioneering Spirit.

Allseas is proud to be TAQA’s contractor for this major decommissioning contract

seabed in a clean state. That is our responsibility and we don’t take it lightly.

“Working with a single rig contractor for this extensive, cross-border decommissioning campaign is an innovative way reduce time and costs.”

Duncan Morison, Rig Manager of the Well-Safe Protector, said:

“The Well-Safe Protector boasts a large volume of deck space for tubing, casing and conductor recovery, allowing effective batch operations and will help Neptune Energy realise considerable operational savings.”

The Well-Safe Protector is scheduled to mobilise in Q1 2023 to the Dutch and UK sectors for P&A operations in fields including D18a-A, G14-B, K12-S2, L10-S2 and K9c-A in the Netherlands and the Neptune-operated Minke and Orca fields.

Neptune has the option to extend the one-year contract by a further two years, via eight threemonth extension.

and looks forward to close collaboration with TAQA to prepare and execute the safe and sustainable decommissioning of these Northern North Sea assets. The company said that platform removals were planned post 2025.

The complete package for well decommissioning www.wellsafesolutions.com

Petrodec commences decommissioning of Amethyst A2D offshore UK

Petrodec, a decommissioning services specialist, has commenced on the decommissioning of the Amethyst A2D platform in the Amethyst gas field in the UK Southern North Sea. For the first time, Petrodec has been granted operator status by the UK OGA.

Amethyst A2D, which was installed in 1989, is currently being made hydrocarbon free and the wells plugged and abandoned. After the completion of P&A and topside preparations, the work programme consists of skidding the topside off the jacket, sea fastening and rig move for final dismantling in Vlissingen harbour in the Netherlands.

Petrodec is using its own vessel for the entire project, the ERDA, a modified versatile jack-up, replacing the traditional practice of using a drilling rig and heavy lift vessel.

Works on Amethyst A2D follows the successful decommissioning of Amethyst B1D, which was completed in December 2021.

Commenting, Rainier Verhulst, Petrodec’s General Manager, said:

“Over the past three years, Petrodec has established itself as a leading, innovative, provider of decommissioning services. The award of operatorship for the decommissioning of Amethyst

A2D by Perenco UK is a major milestone and is testament to our track record of safe and efficient projects and earning the trust of not only our client but also the relevant authorities.”

National Decommissioning Centre and Nuclear Decommissioning Authority launch research partnership

The National Decommissioning Centre (NDC) and the Nuclear Decommissioning Authority (NDA) have signed a three-year collaborative research agreement - the first of its kind between the nuclear and oil and gas decommissioning sectors.

The unique strategic partnership, supporting research with a potential value of up to £900,000, will see researchers from the University of Aberdeen work with the NDA in areas of mutual interest to both the nuclear and oil and gas sectors, including decarbonisation of decommissioning activities, economic impacts, cost benchmarking and remote operations in hazardous environments.

This agreement builds on three years of discussions involving the NDA, the NDC, Net Zero Technology Centre, regulators including the North Sea Transition Authority, and industry bodies, which sought to identify mutually beneficial opportunities through the insights and lessons learned from each sector.

The partnership will seek to draw on current research taking place at the NDC and the University of Aberdeen to deliver a programme of research that will provide benefit to both the nuclear and offshore energy sectors. This will include links to a project backed by the Scottish Government’s Energy Transition

Fund, in which the NDC is working with the offshore energy sector to reduce emissions from decommissioning operations by introducing alternative processes, new technologies and assessing opportunities for wider collaboration.

The partnership also aims to harness the capabilities of the NDC’s £1.6 million simulation suite*, to enable operational scenarios related to nuclear decommissioning activity to be trialled in a safe, virtual environment. This will allow users to optimise and reduce risk in operations such as the removal or moving of infrastructure, or deployment of new technologies to understand which are best suited to a task.

Welcoming the agreement, Professor Richard Neilson, director of the NDC at the University of Aberdeen, said:

“We are delighted to be working in partnership with the NDA to explore areas where our expertise can provide value in both nuclear and offshore energy decommissioning contexts, including remote operations, decarbonisation, cost benchmarking, and potentially underwater laser cutting.

“We look forward to working closely with colleagues at the NDA as we

seek solutions that help to meet the many challenges of nuclear decommissioning, while delivering cross-sector benefits.”

Karl Sanderson, Head of Cross-Industry Learning at NDA, said: “The civil nuclear industry has engaged with other industry sectors on many areas of common interest in recent years, sharing lessons learned on over 15 topics, involving more than 150 organisations. This new relationship with the NDC will build on prior collaboration to enable joint projects and research to be conducted, that aim to underpin the UK as an emerging centre of global excellence in decommissioning.”

Roger Esson, Head of Industry and Partner Networks, at the Net Zero Technology Centre, added: “At Net Zero Technology Centre we know the value of partnership and collaboration, and our strategic partnership with the University of Aberdeen to fund the NDC continues to provide opportunities to share knowledge to address the challenges that our industry is facing as we seek to realise our net zero ambitions.

“This latest agreement brings together two research partners to address their challenges and to establish where common ground and mutual interests could benefit all parties – it is this kind of cross-sector learning that will accelerate the energy transition.”

Field Development Update

During the period under review, final investment decisions (FID) were announced for Harbour Energy’s Talbot development (UK), Shell’s Rosmari-Marjoram development (Malaysia) and TotalEnergies’ Fenix gas field offshore Argentina. However, engineering, procurement, and construction (EPC) contract awards related to these developments are yet to be announced, contributing to an anticipated spike in offshore O&G-related EPC contracting activity in 4Q 2022. Offshore EPC award YTD is valued at US$27 billion, driven by 160 subsea trees, 1,900 km of SURF, 2,150 km of line pipe, 10 floating production systems (FPS) and 56 fixed platforms. An additional US$42 billion in offshore EPC contract award value is forecast for the remainder of 2022, driven by Saudi Aramco’s Manifa, Safaniya and Zuluf projects (Saudi Arabia), QatarEnergy’s North Field Sustainability project (Qatar), Equinor’s Wisting project (Norway), and Petrobras’ Buzios project (Brazil). These six projects will account for approximately US$18 billion in anticipated offshore EPC spend. However, global supply chain challenges are expected to impact the contract award timeline for some of these projects.

Major EPC awards recorded over the last 30 days include an award to Allseas for the 123 km Darwin Pipeline Duplication Project offshore Australia, following an announced FID by Santos at the end of August 2022. Offshore UAE, ADNOC awarded National Petroleum Construction Company (NPCC) an EPC contract valued at US$548 million for an 85 km subsea pipeline for its Lower Zakum Long Term Development - Phase I (LZ LTDP-1) project.

In other field development-related news, Ranhill Worley confirmed it received a letter of award from PTTEP for the front-end engineering and design (FEED) contract for offshore facilities in the Lang Lebah development off Malaysia. In the US GoM, Delfin Midstream is set to take FID on its first floating liquefied natural gas (FLNG) unit to be deployed offshore Louisiana after it secured a total of 2.5 mmpta in long-term purchase agreement, which is what is required to begin construction.

Offshore Rig Update

The global committed jackup count dropped by three units to 382 in August. The available jackup count stands at 51, while cold stacked jackups total 53. Marketed, committed utilisation dropped by 1% to 88%, while total fleet utilisation maintained at 79%. Seven new fixtures were recorded in August with a total of 17,141 drilling days, the majority of which coming from the Middle East.

The global committed semisubmersible (semi) count increased by one to 68 in August. There are 14 available rigs and 14 cold stacked units. Marketed, committed utilisation declined from 85% to 83%, while total fleet utilisation fell to 71%. Seven new fixtures with a total of 1,305 drilling days were recorded. Most notably, Aker BP awarded a fiveyear contract for Odfjell Drilling semi Deepsea Stavanger to work off Norway, which will commence in 1Q 2025.

Finally, drillship demand continued to grow, where the committed count increased by one unit to 76, leaving only five units available in the market with another 15 rigs cold stacked. Marketed, committed utilisation and total fleet utilisation maintained at 94% and 79%, respectively. Four new contracts with a total of 3,452 drilling days were awarded in August. Among those, Transocean was awarded a six-year contract for its Petrobras 10000, with operations set to commence in 4Q 2023.

Offshore Wind Update

Since the last update, Siemens Gamesa signed a firm order to supply turbines for the 924 MW Sunrise Wind project located offshore Massachusetts, US. The company informed the Spanish National Securities Market Commission (CNMV) that it signed this order, and it will supply a total of 84 SG 11.0-200 DD turbines.

Dominating headlines was the news that GE has been barred from selling its Haliade-X offshore wind turbine in the US by a federal judge in Boston. In June 2022 the federal judge ruled that the Haliade-X wind turbine model had infringed one of Siemens Gamesa’s offshore Direct Drive technology patents and this ruling follows the initial judgment. The judge has granted GE the rights to supply its Haliade-X turbines to the 806 MW Vineyard Wind 1 project and the 1.1 GW Ocean Winds 1 project. GE will have to pay a royalty of US$30,000 per megawatt of rated capacity for each of the turbines that it supplies to Vineyard Wind 1 and a royalty rate for Ocean Wind 1 will be determined at a further hearing. Haliade-X turbines were also selected for the 120 MW Skipjack 1 wind farm, however a turbine supply exemption has not been granted for this project.

Finally in Taiwan, the Energy Bureau of the Ministry of Economic Affairs is planning to launch a floating wind demonstration tender in 4Q 2022, with the aim of selecting project developers in 2023. The tender process is for a total installation capacity of 100 MW with a cap of 50 MW on any single project.

Westwood’s 2022-23 outlook assumes a $65/bbl Brent oil price

ENSURING OR INSURING INDEMNITY COVERAGE?

Allocation of liability using an indemnity structure is a well-established concept of contracting for energy projects. Typically, indemnity regimes have always been separate from any insurance obtained, this is to avoid any issues relating to caps, limitations of coverage or even loss of coverage.

As costs are rising, contracting parties continually look for ways in which to reduce exposure or to limit potential liability. When negotiating allocation of liability, is it acceptable to allow the indemnifying party to connect their liability to insurance?

Indemnity versus Insurance

Where a party provides an indemnity they are agreeing to accept the transference of responsibility for a specified loss and that they will keep the indemnified party whole against such loss. However, where they agree to provide insurance for certain types of loss, any coverage in respect of that loss will be limited by the terms and value of the insurance policy obtained. While insurance itself is a form of indemnity, it is caveated and limited in various ways and, notwithstanding a contractual obligation to procure the insurance, is only effective once the policy is in place.

A contractual indemnity, where the party takes on the liability directly themselves, does not require any further steps and, other than solvency, is not subject to any caveats.

Insuring indemnities

It is becoming more common for parties giving contractual indemnities to seek to limit their liability to, or offset it against, any insurance coverage that either they obtain or that the indemnified party may already hold themselves.

The intended benefit of an indemnity is that it is an absolute obligation to make payment up to the agreed amount where losses of the type specified are incurred. It remains subject to some credit risk depending on the financial capability of the party providing the indemnity but again, this can be mitigated through careful diligence and ongoing consideration of the indemnifying party's financial position during the life of the underlying agreement. Indemnities can also be backed by security where the financial position is deemed too risky, however, the ultimate risk that the indemnifying party, or the wider group it is part of, becomes insolvent will always remain.

Where an indemnity is capped at the insurance coverage available there is always a risk to the indemnified party that the policy will not pay out or will be invalidated in some way. While this can be mitigated to a certain extent by having sight of the policy and being named as an additional assured, the risk remains that the payment available may not be aligned to the value of the loss incurred or the policy may become invalidated.

Alternatively, permitting an indemnifying party to offset their risk against insurance that is either obtained or already held by the indemnified party still comes with risks. Where an offset right is included, it may imply a requirement on the indemnified party to actively obtain that insurance. Moreover, depending on the terms of the policy obtained, it may not be valid to allow the indemnifying party to rely on offsetting its liability against that policy so the indemnity could be at risk of becoming ambiguous.

Ensure insurance is correctly handled

Indemnities and insurance are each intended to address specific risks but the nature of each is markedly different. Linking insurance to indemnities risks devaluing the benefit of the indemnity structure and leaving the indemnified party exposed to greater risk. The starting position should always be that indemnities are requested for specific areas of concern or significant risk and this is decoupled from any requirement to obtain insurance.

Laura

Laura Petrie

for Shutdown Season 2022...