Oil, Gas and Shipping Magazine

ISSUE 81 www.ogsmag.com

Lerus Group: Inspiring training solutions

The Editor

Gudrun installation - Photo Eli Skjæveland Tengesdal - Statoil

Discovering Offshore Europe

Editor

The

Martin Ashcroft

I

f you are reading this in Aberdeen, you must be visiting the largest oil production and exploration event of its kind in the eastern hemisphere. The city is not called the oil capital of Europe without good reason. Before the capital moved north, however, the first offshore exhibition in Europe (Oceanex 70) was held at the Caister Holiday camp just outside Gt. Yarmouth in Norfolk in October 1970, less than 20 miles from where I live.

SPE Offshore Europe has been running in Aberdeen since 1973. I have been running a little longer than that, but this is my first time at the event.

I have edited business magazines for nearly twenty years, covering sectors from manufacturing to mining, construction to communication technology, but I am new to oil and gas this year. I expect to learn a lot more about it this week.

It looks to me as if the main conference themes have been extremely well chosen, however. I’m sure life is always tough in oil and gas but the last few years have been harder than usual.

It can’t be easy attracting talented new recruits to an industry with long-term development projects but huge short-term price

fluctuations. There are no jobs-for-life anywhere in a modern dynamic economy, though, and it will be interesting to hear how the best minds in oil and gas are planning for the future.

Despite the government’s commitment to renewable energy, it’s clear that oil and gas will continue to provide most of our energy for at least the next ten or twenty years. Even the Department of Energy and Climate Change expects that by 2030, 70 per cent of the UK’s total primary energy will still come from oil and gas.

As a conference subject, therefore, ‘The challenge of our generation’ hits the spot, and it’s sure to prove controversial as we strive to secure an adequate affordable energy supply in an environmentally and socially responsible manner.

People from all over the world attend Offshore Europe every two years and I look forward to meeting as many of you as I can. If your company has appeared in this magazine in the past, please let me know how you felt about the coverage you received. If you haven’t read this magazine before, there’s a first time for everything. I hope it won’t be your last.

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Contents Page 6

Cover story: Lerus Group: Inspiring training solutions

03

The Editor: Discovering Offshore Europe

37

The global dry bulk freight market

20

Offshore Europe 2015 including floorplan

38

Gamification can help travel spend

27

News in Brief

54

Ebara: Refueling the market

27

Norway approves Johan Svedrup development

58

Interview: Thanos Pallis, MedCruise sec. general

27

Is shale the new “swing” producer?

60

Statoil: More to discover

29

Shell given clearance to drill in Arctic

65

Raccortubi Group, featuring Petrol Raccord

31

No change in policy for OPEC

86

Flex Coil: Heat transfer solutions

33

New report questions role of LNG

96

Aggreko: Offering rental options

33

China oil demand grows

104

Spectrex: Rising to the toxic gas challenge

35

Algeria law reform to attract foreign investment

108

Mercy Ships: Mamisy’s fight with noma

37

N.America leads rising LNG liquefaction

110

Oil, Gas and Shipping media information

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Lerus Group: Inspiring training solutions In less than ten years a crew management agency in Ukraine has grown into one of the world’s premier providers of specialist training for the offshore sector

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R

uslan Gromovenko founded Lerus in 2007 in Odessa, Ukraine, as a crewing agency and ship service company to serve the northern Black Sea ports. In less than ten years the company has grown to become the owner and operator of one of the biggest offshore training centres in the world and a consultancy service specialising in dynamic positioning, lifting equipment and personnel assessment.

“Our main activities are crew management, offshore training, consultancy and ship service,” confirmed Gromovenko. “Our ship service department operates along the north coast of the Black Sea and provides a wide range of services including survey and maintenance of life-saving appliances, life and rescue boats, firefighting equipment supply and chandlery services. We launched the training centre in 2012 and the consultancy department in 2014.”

As you might expect, Gromovenko has a seafaring background himself, having sailed as a marine engineer with offshore and merchant fleets around the world. “I’m familiar with the conditions, and the ups and downs of seafarers’ work,” he says.

“You have to meet high standards, perform your duties safely and remember your family’s expectations – they want to see you come back home just like you left, so you can enjoy what you worked hard for.”

The oil and gas industry has always expected high standards from its offshore employees, but ‘training on the job’ is not 8

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Ruslan Gromovenko appropriate nowadays with all the technology on board modern vessels, and the increasing emphasis on safety and environmental issues. This is a potentially dangerous industry and accidents can be catastrophic, so it is absolutely imperative that the industry should have a skilled workforce capable of responding to emergency situations, wherever they occur.

It has been historically difficult however, for Eastern Europeans to get the best training without paying high premiums. Attending

Lerus Group

specialized offshore training courses in the UK or other European countries involves visa issues, travel expenses, course fees, hotel accommodation, etc.

“We launched the training centre in 2012 and the consultancy department in 2014.”

“The idea to open a local training centre popped into our heads in 2011,” said Gromovenko. “All the necessary equipment and software was installed in Odessa by the end of 2012, then Lerus

Training became a member of the Nautical Institute training scheme in April, 2013. Now we train students from Europe, Africa and the Middle East.”

There is much more to safety in the oil and gas industry than avoiding explosions on oil rigs like in the Gulf of Mexico. This is a dynamic, fast-paced and demanding global industry and its requirements for safety and emergency training are many and varied.

Modern vessels can be extremely large in relation to offshore installations and an impact due to control or mechanical failure can result in serious damage. The vessel itself may well be able to limp away for repair but a mobile unit may have to cease operation and be towed away.

To avoid such eventualities, expertly-trained and experienced

Class B Simulator at Lerus Oil, Gas and Shipping Magazine (www.ogsmag.com)

9

All the equipment and software was installed in Odessa by the end of 2012 and Lerus Training became a member of the Nautical Institute training scheme in April 2013 10

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Lerus Group

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instructors at the Lerus Training Centre give masters and crew a realistic offshore training experience to provide them with the appropriate skills in a safe and controlled environment. Training is organised into five main groups: ship handling, dynamic positioning, offshore crane operator, helicopter landing officer and helideck assistant, and human resources.

Training in ship handling provides an introduction to the offshore environment and an understanding of the basic skills required on board ship, along with the opportunity to practise them in a Kongsberg simulator. A five day course for deck officers would cover (among other things) basic manoeuvring theory, calculation of wind and current and their influence on the operation, basic knowledge of offshore installation terminology, safety of personnel, vessels, offshore installations and the environment, risk assessment and contingency planning for emergencies such as thruster, rudder or propeller failure, and an introduction to dynamic positioning. The course includes practical exercises on the full mission offshore support vessel simulator in various weather conditions and in different working situations, with full feedback sessions after each completed operation.

Dynamic positioning

Dynamic positioning (DP) is at the heart of the Lerus Training Centre’s prospectus, having rapidly become a core technology of the offshore industry. DP is the term given to the computercontrolled system that maintains a vessel’s position and heading automatically by using its own propellers and thrusters. Position reference sensors, combined with wind sensors, motion sensors and gyrocompasses, convey information to the computer in relation to the vessel’s position and the magnitude and direction of the environmental forces affecting it.

“Dynamic positioning is the modern computer system for keeping a vessel in a static position in any environment,” says Gromovenko. “Imagine a diving support vessel, for instance, with 12

Oil, Gas and Shipping Magazine (www.ogsmag.com)

divers working underneath on inspection or repair; the vessel must be able to stay immediately above the divers.” Anchors are not as precise, he explains, because heavy current or wind can move vessels around their anchors. “Fifty years ago they used anchors, but now we have DP.” Dynamic positioning may be either absolute, when the vessel’s position is locked to a fixed point over the bottom of the sea, or relative to a moving object like another ship or an underwater vehicle. The vessel may also be positioned at a favourable angle towards wind, waves and current, called weathervaning.

DP is now routinely fitted in a range of vessel types, including drilling rigs, offshore support vessels, floating production units, survey vessels, shuttle tankers and more. These vessels frequently need to conduct safety-critical operations close to platforms or other fixed structures. Properly trained DP operators are essential for the vessel to work to its maximum efficiency.

“Dynamic positioning is the modern computer system for keeping a vessel in a static position in any environment” The industry-recognised route to becoming a qualified DPO is the successful completion of training courses accredited by the London-based Nautical Institute, which has managed the DP Operator training scheme since its inception in the mid 1980s.

For prospective DPOs the Lerus Training Centre runs a five day basic induction course which is a mixture of theoretical sessions and practical exercises on Kongsberg DP stand alone simulators. Assessment is by tests in which a successful candidate must achieve 70% correct answers, and then go on to complete

Lerus Group a minimum of 60 days seagoing DP familiarisation. They then return to the Centre to take the advanced course and follow that with a minimum of 60 days watchkeeping on a DP ship. Lerus also runs a course for engineers in Maintenance of DP Systems, and for people who work with failure mode and effect analysis (FMEA) in relation to DP it has an FMEA Familiarization course.

Kongsberg makes a range of simulators and Lerus has a full set.

“The Class A simulator is the 360o view full mission simulator with the ability to run seven different types of vessels plus a semi submersible rig,” explains Gromovenko. “We also have a class B which allows us to run another small bridge with a 270o view, and we have two class Cs which are single consoles specially designed to train newcomers to the DP industry.”

“In real life a captain would never let a student handle a vessel, but with our training vessel we can let the student run it by himself to feel how it responds, how it moves” Lerus also has an offshore crane simulator on which the crane operator can work on the rig or on the vessel. “We can carry out ship to ship transfers,” adds Gromovenko, “and we can simulate loading and unloading, anything that you need to do.”

However good the simulators are (and these are the top of the range) it’s not quite the same as being out on the ocean. Lerus is unique in having a chartered DP-equipped ROV support vessel and now offers an on-board DP course, aimed at students undergoing their familiarisation period. “We teach the students to handle the vessel themselves, under the supervision of a

master,” says Gromovenko. “In real life a captain would never let a student handle a vessel because the captain is responsible for that vessel, but with our training vessel we can let the student run it by himself to feel how it responds, how it moves. We have 100% positive feedback from students.”

A new course in the planning stage will use the same vessel for on-board training of ROV pilots. “We plan to run an ROV course from October,” Gromovenko continues. “We just need to finish getting the curriculum together and the handbook for the students and then get approval from the accreditation society. We intend to use the vessel for both DP students and ROV students so the vessel will be in DP mode and at the same time the ROV students will be having DP practice. It’s a double-win.”

Another project in the pipeline will be another world-first, as Lerus is working with the Nigerian government to set up a training centre on-board a multipurpose support vessel to train Nigerian seafarers. “At any one time there are approximately 350 vessels in operation offshore Nigeria,” explains Gromovenko.

“Seventy five per cent of the crew are from overseas. That means that millions of dollars are going overseas and the Nigerian government would like to revert them back to Nigeria, but they do not have enough people qualified to work on these ships.

Many of their sailors have only fishing boat experience.

“We are talking with the Nigerian government about training 100-200 seafarers a year, and they will be fully trained, from A-Z. Every trainee will have it stated in his experience book that he has spent some time training on a real offshore vessel. As a prospective employee he will have real on-board experience of what it’s like to work on a vessel, he will be familiar with the structure and the safety procedures and drills, etc. You can’t duplicate that exactly onshore. Whatever equipment you have, and Lerus has the most expensive in the world, it’s still a classroom. It’s close, but it’s not 100%. Here they will be trained in the same environment they will work in.”

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The class A is a 360o simulator with the ability to run seven different types of vessel plus a semisubmersible rig

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Lerus Group

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Lerus Group Lerus has its sights set on expansion even further east, however. Its first branch opened in Singapore in July 2014 and a second is planned for Indonesia in 2016. “This is a hard time for the industry,” admits Gromovenko, “but we have plans to develop our business because we see opportunities for growth.

“We see the main opportunities in the developing countries of the Asia-Pacific region,” he continues.

“Indonesia, Malaysia, Vietnam, Thailand, etc. Their onshore and offshore oil & gas reserves have become one of the main sources of potential growth for these countries, but to develop new fields and projects they need new technologies and a qualified labour force – engineers, seafarers, managers, etc. We are ready to meet this demand and offer our experience, investment and technologies to train the necessary workforce.”

“We save a lot of time for our recruitment clients by having an office in Singapore; they don’t have to wait for Ukraine to wake up” The Singapore branch provides crew management services and represents Lerus’ training and consulting departments for efficient communication with clients. “Singapore is the hub of the maritime business but it’s five or six hours ahead of us,” says Gromovenko. “We can save a lot of time for our recruitment clients by having an office in Singapore, so they don’t have to wait for Ukraine to wake up before they can get an answer.”

The offshore sector has had a tough 12 months and many operators have cut back on recruitment and nonmandatory training. Despite all that, Lerus has managed to find opportunities for expansion. “You have to face these challenges with head held high because this is an opportunity to show your ability to be stable, efficient and ready for quick changes in hard times. We have to be proactive within the current economic climate to be ready for the future. Our main mission is to assist the offshore sector to get qualified and well trained personnel to complete their project without accidents.”

Gromovenko believes that long term relationships with partners are key to a company’s success. “You have to work hard every day and show that you understand the current needs of partners and be willing to adapt to future changes in the market.

“The most important project in our immediate future is to establish an offshore training centre in Jakarta. Indonesia is a developing country and the new government supports investors establishing new projects in Indonesia. Our main objective is to improve the competence level and skills of the offshore employees who will work in the waters of Indonesia and the Asia Pacific region.”

Offshore crane simulator at Lerus

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OFFSHORE CRANES

ENGINEERING

CRANE SERVICES

DEMANDING CONDITIONS EXCEPTIONAL SOLUTIONS Kenz Cranes is a leader in the design, manufacturing and maintenance of offshore hoisting and lifting systems. With a history spanning several decades, we have combined constant technological development with an unprecedented client focus to deliver one of the best product and service portfolios in the industry.

WWW.KENZ-FIGEE.COM

New times, new challenges With SPE Offshore Europe 2015 (8-11 September) opening its doors in Aberdeen, the industry is looking forward to welcoming visitors from all over the globe to discuss and debate both the technical and people challenges facing the oil and gas business today.

D

espite the current difficult market conditions, oil and gas will remain indispensable to the world for securing heat, light, mobility and prosperity for many decades to come. According to the International Energy Agency’s World Energy Outlook 2014, oil and gas will still supply around half of the world’s energy by 2040. Sourcing skilled, innovative and motivated people and developing new technologies are essential for the industry to be successful in meeting this demand.

The event will open on Tuesday 8 September with a plenary session focusing on the basic challenge of meeting energy demand while balancing concerns over climate change, security of supply and consumer affordability. Professor Brian Cox is confirmed as a speaker. Arguably the UK’s best known physicist, his books and TV programmes are read and watched around the world and are credited with making science engaging and accessible to millions.

Other confirmed speakers include: Keisuki Sadamori, Director, Energy Markets and Security, International Energy Agency; Simon Bittleston, Vice President, Research, Schlumberger; Matt Corbin, Managing Director, Aker Solutions; and Liz Rogers, Vice President Environment, Social Responsibility and HSSE Compliance, BP. The keynote programme, chaired by Michael Engell-Jensen, Executive Director of the International Association of Oil & Gas 20

Oil, Gas and Shipping Magazine (www.ogsmag.com)

Producers (IOGP), will offer 11 sessions dealing with important elements of the framework within which the industry is likely to have to operate in the coming years. Topics to be addressed include: health; the safety and security of people and assets; well intervention; financing investments; oil spill response; and inspiring the next generation to join the industry.

The technical programme, chaired by Charles Woodburn, Chief Executive Officer, Expro, will present more than 75 papers, demonstrating that the industry’s engineering, manufacturing and technology excellence is set to assure a long-term sustainable future. Speakers drawn from all over the world will discuss topics such as asset and well integrity, maximising economic recovery, smarter field development, pipelines and risers, subsea processing, talent development, unconventional gas development, process safety, and decommissioning.

Meanwhile on the exhibition floor, around 1500 global organisations will showcase their technologies, services and expertise. At least 300 companies, large and small, will be exhibiting for the first time at the show. Exhibitors will represent the complete supply chain of companies including operators, drilling contractors and oilfield service companies, consolidating Aberdeen’s established reputation as a supplier of services and products to projects worldwide.

Offshore Europe 2015

Reflective of the global nature of the industry as a whole there will be a large overseas exhibitor presence with representation from 44 countries and 33 international pavilions. And the majority of registered UK visitors to date have overseas remits too – 35% of them are involved in projects in Africa, 30% in the Middle East and 25% in Asia Pacific.

Planning is also well advanced for the Deepwater Zone, where a dedicated theatre will host industry experts presenting topical case studies and participating in panel discussions.

With content programmed by Subsea UK, the Society for Underwater Technology and ITF, these sessions will address deepwater developments; the future of inspection, repair and maintenance; new technologies for efficiency and effectiveness; subsea challenges for enabling deepwater production; and ultra deepwater challenges. In the event’s largest Deepwater Zone to date, some 30 companies from this rapidly evolving sector will display their latest products and services.

Entrepreneurial visitors will have the chance to meet potential investors on Wednesday 9 September. After a morning of investment workshops presented from the operator, venture capitalist and entrepreneur perspectives, a limited number of companies will be invited to one-to-one meetings to discuss investment projects with some grant, early seed and direct industry funding providers.

The exciting breakfast briefings and topical lunches are booking up fast. Confirmed breakfast briefing speakers include Steve Varley, UK Chairman and Managing Partner, EY; Lars Christian Bachar, Executive Vice President, Development & Production

International, Statoil; and international oil and energy consultant, Manouchehr Takin.

BP’s Bernard Looney, Chief Operating Officer, Production, is the confirmed lunch speaker on Tuesday 8 September, and Andy Samuel, Chief Executive, Oil & Gas Authority, will speak at the lunch on Wednesday 9 September. On Thursday 10 September, the lunch session will be given over to a small operators’ panel chaired by Neil McCulloch, President, North Sea, EnQuest.

With its emphasis on recognising the long-term need for a secure talent pipeline, SPE Offshore Europe 2015 will be running ‘Inspire’, its largest ever programme of activities for a younger audience, allowing students to engage with the industry face-toface.

Visit www.offshore-europe.co.uk for further information and please see the exhibition floorplan on the following pages.

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2E05

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SCOTLAND - SDI SCOTLAND - SDI

2C23 2C27 2D05

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2E

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1A125 1A120 1B121

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ABERDEEN Aberdeen CityCOUNCIL Council CITY

1J111

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2C

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2B56

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MALAYSIA

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NOF

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NOF Energy ENERGY

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2B

CAFE

MALAYSIA 1B101

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Organisers' Office

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MIDNOR - NORWAY 1A86

OETV Studio

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DANISH EXPORT ASSOCIATION

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MIDNOR - NORWAY 1D80

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1J71 FAROE Faroe Islands Maritime ISLANDS Services

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First Aid 5A30 5B40

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NIGERIA Nigeria - PETAN PETAN

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Sales Office

5A40 5C51 5B51

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5D23

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Room Stairs 23 Up to

1J51 1J50

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DANISH EXPORT 1A71

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GREAT YARMOUTH Great Yarmouth & LOWESTOFT & Lowestoft (EEEGR)

5C60

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NETHERLANDS - IRO

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NETHERLANDS - IRO 1A10

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MAIN ENTRANCE

Exhibition Registration Area

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Meeting Room

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Meeting Room

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L3

Meeting Room

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Accommodation Desks

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L4

Meeting Room

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Bus Station A

5C120

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Oil, Gas and Shipping Magazine (www.ogsmag.com)

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Oil, Gas and Shipping Magazine (www.ogsmag.com)

23

Sunset over the oilrig: by Pete Markham

24

Oil, Gas and Shipping Magazine (www.ogsmag.com)

Monthly news & features Oil, Gas and Shipping Magazine (www.ogsmag.com)

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News and features

News in Brief Trelleborg Sealing Solutions has produced a highly innovative seal for a ground-breaking valve designed by Schoolhill Hydraulic Engineering for BP’s Shah Deniz field. The high flow, high integrity, safety critical subsea QEV (quick exhaust valve) has been created for a subsea HIPPS (high integrity pressure protection system) at the South Caspian Sea site. It is the culmination of a five-year project by Aberdeen-based Schoolhill Hydraulic Engineering. Trelleborg Sealing Solutions was commissioned to develop the seal.

Norway approves Johan Sverdrup development and operation plan

* * *

The Centre for Policy Studies, one of Britain’s best known and most respected think tanks, has welcomed the recent announcement by the UK Government of the 14th onshore oil and gas licencing round as an important step in the development of the UK’s oil and gas industry. As well as issuing new licences for exploratory work, the Government is also taking steps to reduce planning application times. The CPS said it is critical that these reserves are tapped. * * * The Energy Institute (EI) has published A guide to shale gas, which addresses the technological, environmental and legal aspects of exploiting this energy source.

The 20-page document aims to bring scientific and technical accuracy to the debate and to help readers expand their knowledge of the subject. It explains in factual terms how shale gas is extracted, its impact on the environment and its potential role in meeting future UK energy needs. The guide can be downloaded free of charge. * * * Reflex Marine has added Australian maritime safety company Wiltrading to its global network of Accredited Service Centres. Wiltrading has represented Reflex Marine as a regional partner for over ten years and has now achieved Accredited Service Centre status, the most comprehensive level of accreditation awarded by Reflex Marine. Reflex Marine specialises in offshore personnel access by crane. The company is best known for its transfer devices, the FROG and TORO as well as its latest product range, the FROG-XT.

T

he Norwegian Ministry of Petroleum and Energy has approved the plan for phase one of the development and operation (PDO) of the Johan Sverdrup oil and gas field in the Norwegian North Sea. At the same time the associated plans for installation and operation for transportation pipelines and power supply from shore were also approved.

“We are delighted that the development plan for the Statoil-operated Johan Sverdrup field has been approved,” says Arne Sigve Nylund, executive vice president for Development and Production Norway. “The field is of great importance, and will generate substantial spin-offs and value for partners and society for more than 50 years. Focused efforts are now underway in the partnership to ensure that the opportunities and enormous values in the Johan Sverdrup field are captured.”

The first piece of the Johan Sverdrup development, the pre-drilling template,

has already been installed on the field by Hereema Marine Contractors and the construction of the first jacket has started at Kværner Verdal. “Contracts worth more than NOK 40 billion ($4.87 billion) have been awarded so far in the development, 75 percent of which have been landed by suppliers with Norwegian invoice addresses,” says Øivind Reinertsen, senior vice president for Johan Sverdrup.

The Johan Sverdrup oil field will be developed in several phases. Phase one consists of four bridge-linked platforms, in addition to three subsea water injection templates.

The ambition is a recovery rate of 70%, allowing for advanced technology for increased oil recovery (IOR) in future phases. The phase one development has a production capacity in the range of 315,000-380,000 barrels per day. First oil is planned for late 2019.

The Johan Sverdrup partnership consists of Statoil, Lundin Norway, Petoro, Det norske oljeselskap and Maersk Oil.

Is shale the new ‘swing’ producer?

T

he emergence of shale technology, particularly in the US, is dramatically challenging the conventional rules of the global oil markets, says Olivier Appert, President of the World Energy Council French Committee.

For the last 40 years, OPEC has been the major player in setting global oil prices. It has been the swing producer, increasing its production when markets are tight, and

reducing quotas when there is over-supply.

But OPEC held meetings in November 2014 and June 2015 when it decided to maintain its level of production in order to keep its market share, which has led to the price of oil dropping by 50 per cent.

With the role of shale producers in the US becoming more predominant, they may become the ‘swing’ producers in setting global market prices.

Oil, Gas and Shipping Magazine (www.ogsmag.com)

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News and features

Shell given final clearance to drill in the Arctic

S

hell has finally been given the goahead to start drilling for oil below the ocean floor in the Arctic, after a vessel carrying equipment designed to stop a possible well blowout arrived at the drill site.

The permit allows Shell to drill in the oil-rich Chukchi Sea off the northwest coast of Alaska. Greenpeace and other environmental campaigners are opposed to Arctic drilling because they claim it will be damaging to the sensitive environment, but the US government said it was monitoring Shell’s work “around the clock” to ensure the “utmost safety”.

“Activities conducted offshore Alaska are being held to the highest safety, environmental protection and emergency response standards,’’ said Brian Salerno, director of The Bureau of Safety and Environmental Enforcement (BSEE), the branch of the US Department of the Interior which issued the final permit.

A spokesperson from Shell also emphasised the firm’s focus on safety. “We remain committed to operating in a safe, environmentally responsible manner and look forward to evaluating what could potentially become a national energy resource base,” she said.

Shell had begun this latest work in July, but was allowed to drill only the top sections of two wells until the capping stack arrived. This is a device that can be lowered over a wellhead to stop a blowout.

The permit requires Shell to have it ready to use within 24 hours of a blowout, but its arrival was delayed when the ship it was on, the Fennica, was damaged in Dutch Harbor and had to go Portland, Oregon for repair. Now it has arrived Shell is allowed to drill into oil-bearing rock that may be as far as 8,000 feet below the ocean floor.

Shell paid over $2 billion for leases in the Chukchi Sea in 2008 and has since

spent around $7 billion on exploration there and in the Beaufort Sea off Alaska’s north coast. The company hopes to drill two exploration wells during the short 2015 open-water season. It has until late September to do this, before all work has to stop. Shell has two drill vessels and about 28 support vessels in the area.

The US Geological Survey has estimated that the Arctic region may hold more than 20% of the world’s undiscovered oil and gas resources. Shell believes that despite the environmental risks, oil can be extracted safely and will be needed to meet growing demand for energy across the world over the coming decades.

Send your news to martin@ogsmag.com Oil, Gas and Shipping Magazine (www.ogsmag.com)

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News and features

No change in policy for OPEC with output highest for three years

O

il production from the Organization of the Petroleum Exporting Countries (OPEC) totaled 31.4 million barrels per day in July, up 120,000 b/d from the June level of 31.28 million b/d, according to a Platts survey of OPEC and oil industry officials and analysts.

Kingpin producer Saudi Arabia accounted for almost all of the increase, pumping an additional 100,000 b/d to take its July output to 10.45 million b/d, the survey showed. Smaller increases of 50,000 b/d, 30,000 b/d and 20,000 b/d came from Angola, the United Arab Emirates (UAE) and Iran, while Algeria, Libya and Nigeria shaved output by a collective 80,000 b/d.

“OPEC is now pumping at its highest level in three years, and that’s before Iran comes back at full throttle,” said Margaret McQuaile, senior correspondent for Platts.

“At some point, something will have to give, but that time may be some way off.”

The July total is the highest volume pumped by OPEC since August 2012,

when the survey estimated the group’s output at 31.54 million b/d. Then, however, OPEC was trying to reduce production towards the 30 million b/d ceiling that had come into force in January 2012. That ceiling remains OPEC’s official output volume, but there is no mechanism in place to enforce it.

Indeed, despite oil prices having slipped below $50/barrel and with the prospect of additional crude flows from Iran in a few months’ time, there is no sign that OPEC’s Saudi-driven market share policy is about to change in the short term, noted McQuaile.

On July 14, Iran and six world powers reached a landmark nuclear deal, which, if finalized in December, should see sanctions lifted, including the oil and financial sanctions that have slashed Tehran’s crude exports to around 1 million b/d from previous levels of 2.2-2.3 million b/d. Iran says it can supply an additional 1 million b/d within six months of the removal of sanctions.

The continuing battle for market share between OPEC and non-OPEC producers has been well documented. Now, with Iran poised to export more oil, the market share spotlight has homed in on OPEC itself. Iran has made clear that boosting exports to the still-growing markets of Asia will be a priority when sanctions are lifted. But competition is already rife in Asia as suppliers from far afield try to find new markets for barrels no longer needed in the United States and with Iraq already exporting its increased southern production eastward. And there’s another producer challenging the traditional supply rankings in Asia – Russia.

Saudi Arabia has been producing at elevated levels above 10 million b/d since March. Oil minister Ali Naimi said in April that he expected production to continue at around 10 million b/d. There has been no indication from either him or from other senior Saudi oil officials that Riyadh may reduce output below this level any time soon.

Oil, Gas and Shipping Magazine (www.ogsmag.com)

31

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News and features

New report questions role of LNG: oasis or mirage?

L

iquefied natural gas has been touted as the metaphoric saviour of the US gas markets, but all is not as it might seem, according to Bentek Energy, an analytics and forecasting unit of global energy and commodities information provider Platts.

The report LNG Exports: Oasis or Mirage? reveals that global gas demand growth has flagged over the last year, rising by no more than 0.7 billion cubic feet per day (Bcf/d), while at the same time 2.2 Bcf/d of new export capacity is expected to be added to the market by the end of 2015.

Global baseload demand will increase by little more than 3.3 Bcf/d in 2016, according to Eclipse Energy, another

analytics and forecasting unit of Platts, whereas global supply is expected to increase by 4.3 Bcf/d, leaving the global market about 1 Bcf/d longer by year end.

Five LNG export terminals are expected to be built in the US over the next five years, with combined liquefaction capacity of 10.16 Bcf/d.

When global spot prices fall below the marginal cost to deliver a US LNG cargo to market in Asia or Europe, a US capacity holder may forego its option to liquefy, thus coupling the Henry Hub price to global spot indices such as the Platts JKM™ (Japan/Korea Marker) and National Balancing Point (UK hub).

Japan, South Korea and China are expected to account for 40% of all gas

demand growth in 2016 and 60% of aggregate global demand.

“As a result of oversupply of LNG in the global market, US export capacity holders are likely to operate without regard to their sunk cost tolling fees and deliver gas at a cost of feedstock plus transport plus margin,” cautions Ross Wyeno, senior energy analyst at Platts’ Bentek Energy.

The analysis LNG Exports: Oasis or Mirage? and a yet-to-be published analysis report on the outlook for US natural gas storage will be distributed at the 2nd annual Benposium East 2015, a natural gas and oil markets outlook symposium to be held in New York City on 27-28 August.

China oil demand grows four per cent year over year in June

C

hina’s apparent oil demand rose 4.1% in June from a year earlier to 11.25 million barrels per day (b/d), according to a Platts analysis of Chinese government data. This is in contrast with year-overyear increases of around 10% in the previous three months.

The latest analysis is based on a new methodology introduced from July in response to significant shifts in Chinese consumption and trade patterns in recent years. Growth in demand for gasoline

and LPG slowed in the month, while gasoil and jet fuel/kerosene demand saw a contraction.

“China’s oil demand growth slowed to 4.1% in June,” said Platts associate editorial director for Asia oil news, Mriganka Jaipuriyar. “Gasoline and jet fuel, which have been seen as the key drivers of oil demand growth in China, witnessed a slowdown in the month.”

China’s refinery throughput in June averaged 10.59 million b/d, rising 1.9%

from a year earlier, according to data from the country’s National Bureau of Statistics.

Meanwhile, China’s net imports of oil products soared 58.4% year over year to 659,000 b/d in June, driven by strong inflows of fuel oil and naphtha, according to data released 23 July by the General Administration of Customs. During the first six months of this year, China’s total apparent oil demand averaged 11.12 million b/d, an increase of 7.3% from the same period of 2014.

Oil, Gas and Shipping Magazine (www.ogsmag.com)

33

News and features

Algeria reforming laws to attract foreign investment

A

lgeria is the third-largest oil producer in Africa, after Nigeria and Angola, and the largest natural gas producer in Africa, but production of both oil and natural gas has declined over the past decade.

Declining production has led the Algerian government to amend its law on foreign investment in hydrocarbons in an attempt to attract the investment and technology improvements needed to halt production declines.

In 2014, the national oil and gas company Sonatrach offered 33 blocks in four sedimentary basins with high shale gas and oil potential. This auction resulted in Sonatrach signing five contracts with Repsol, Shell, Statoil, and Dragon OilEnel. By law, Sonatrach takes a mandatory majority share (at least 51%) of any resulting projects.

In May 2014, the Algerian Council of Ministers gave formal approval for foreign partners to join Sonatrach in the exploration and development of shale gas resources.

Algeria has large proved crude oil and natural gas reserves and abundant resources that are already connected

to world markets through an extensive natural gas pipeline network. It also has a large shipping fleet that sends liquefied natural gas (LNG) from several liquefaction plants to customers in Europe and elsewhere.

Proved crude oil reserves totaled 12.2 billion barrels in 2014, with an additional 9.8 billion barrels of undiscovered oil and natural gas liquids (NGL) resources estimated by the US Geological Survey (USGS), and close to 6 billion barrels of technically recoverable shale oil resources estimated by US Energy Information Administration and Advanced Resources International (EIA/ARI). Proved natural gas reserves totaled 159 trillion cubic feet (Tcf) in 2014, with an additional 49 Tcf of undiscovered natural gas resources estimated by USGS and more than 700 Tcf of technically recoverable shale gas resources estimated by EIA/ARI. Early this year, Sonatrach announced plans to spend $64 billion, or 70% of its total investment program from 2015 to 2018, in upstream activities to reverse the decline in crude oil and natural gas production in Algeria.

During the past three years, Sonatrach

intensified its exploration activities by drilling 275 oil and natural gas wells and by seismically mapping large areas of the country, with an estimated investment of $30 billion. Sonatrach also conducted its own shale resource assessment and started exploration activities.

Sonatrach’s first two vertical shale exploratory wells drilled in 2012 confirmed the potential for shale gas. Since 2014, Sonatrach has been engaged in a pilot project in the shale gas-rich Ahnet basin to drill, hydraulically fracture, and analyze three horizontal wells with up to 14 hydraulic fracturing stages.

Although the government seeks to reduce the country’s dependence on oil and natural gas revenue, it has also made repeated calls for more investment in the sector. However, civil unrest and some opposition to the government’s commercialization of shale resources may present obstacles to attracting foreign investment. Security is also a major concern, particularly following the attacks that took place at the Tigantourine natural gas processing plant in January 2013 in Illizi Province, near Algeria’s eastern border with Libya.

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News and features

North America leads rising global LNG liquefaction capacity

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ased on proposed natural gas liquefaction projects, global liquefied natural gas (LNG) capacity could more than double by 2019, according to research and consulting firm GlobalData.

The company’s latest report reveals that the scale of North American projects is unparalleled, amounting to 32 individual liquefaction plants with over 287 mtpa of capacity through the end of the decade.

Dramatic liquefaction capacity growth is also anticipated in Africa, Europe and Asia.

Matthew Jurecky, GlobalData’s head of oil & gas research and consulting, says this massive infrastructure build-out in the US is driven by unconventional gas in North America. “Years of lobbying for regulatory approval and building out liquefaction capacity has paid off, and the

The global dry bulk freight

market, crippled by oversupply but seeing signs of renewed activity, is expected to take at least a year to hit the road to recovery, according to the latest Platts survey of shipping market participants.

The inaugural Platts Dry Bulk Market Survey, conducted in July, involved more than 100 dry bulk market participants, with respondents including shipowners,

global market will now have to make room for significant increasing volumes of North American gas.

“Shale operators in North America have eyed international markets since 2009, when BG Group entered into a joint venture with Exco Resources in the Haynesville Shale. Shortly after, in 2010, the first application for an LNG export facility in the US was made by Cheniere, before BG announced a long-term LNG sale and purchase agreement with Cheniere in 2011. With Shell acquiring BG in early 2015, the global LNG leader is now also lined up behind the emerging US shale gas export market.”

Jurecky adds that the capital expenditure required to execute the planned global projects is estimated at approximately $700 billion, almost half of which is allocated to

projects in North America.

The analyst also states that global LNG regasification capacity is expected to grow by around 50%, from 41 trillion cubic feet (tcf) in 2015 to 60 tcf by 2019.

“The massive growth in liquefaction is commensurate with the proposed growth in regasification capacity,” continues Jurecky. “Continued demand growth in Asia and an alternative to pipeline natural gas in Europe underlies the $34 billion in capital expenditure behind new LNG regasification projects.

“China and India will lead regasification additions, with a combined $20.6 billion proposed to increase regasification capacity by 7 tcf in the two countries by 2019. In Europe, Canatxx LNG Limited is planning a massive LNG import terminal in the UK with a total capacity of over 1 tcf.”

ship-operators, charterers, shipbrokers and analysts. Those polled represented all dry bulk segments across the Capesize, Panamax, Supramax and Handysize markets.

Some 89% of respondents felt the dry bulk freight market will need a minimum of one year to recover, while 54% of the industry players questioned were not expecting any positive changes for at least three more years.

“Despite some signs of life in dry freight rates over the past few weeks, the results of our survey indicated that most market players do not believe in a sustained upturn any time soon,” said Peter Norfolk, Platts editorial director for global shipping & freight. “While demand-side developments, particularly in China, remain of key importance to this sector, the overriding concern remains the oversupply of vessels.”

Oil, Gas and Shipping Magazine (www.ogsmag.com)

37

Gamification can help travel spend

At SPE Offshore Europe 2015, CWT will reveal how gamification can help keep travel costs under control

A

s the price of oil falls, companies are looking for quick and easy ways to save money. Research by travel management company Carlson Wagonlit Travel (CWT) has shown that influencing business travel behaviour may be more effective in controlling travel spend than mandating strict travel policies.

Younger generations live in an interactive world and use social and gaming software that is simple to implement for most companies. They are also bombarded with deals and choice of booking channels and know how easy it is to book a flight or hotel online for a personal trip.

Gamification promotes positive traveller behaviour by introducing motivating, game-like elements to a managed travel programme, such as point scoring and competition with others. It has become a buzz-word in business travel.

Mark Cooke, business development director of CWT, explains the steps to consider before you implement a gamification solution to your travel programme.

Step 1: Look at your workforce; a gamification programme 38

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won’t work for everyone, and a gamification initiative works best when it’s designed to engage travellers and drive specific behaviour changes. A gamification programme is most effective when participants want to play; it will not work if they are forced into it. This is particularly effective in companies with a young workforce, a large proportion of road warriors, or a nonmandated travel policy.

Step 2: Identify the behaviours you want to change. As programmes mature, fewer savings opportunities are available in most managed travel programmes. The greatest opportunities are achieved through improved traveller buying behaviour, such as advanced purchase, preferred supplier usage, or booking online.

You can decide how many points each of these choices is worth, providing positive reinforcement for desired behaviour. This is particularly important in non-mandated travel programmes.

Step 3: Look at the technology you will need to have in place; you will need an integrated platform that can track and recognise the users of the tool. Work with your travel management

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company to implement a gaming environment that directly engages travellers and delivers a reward scheme that influences buying behaviour.

Step 4:
Get buy-in across the workforce, from senior management downwards. Travellers have to want to play, otherwise the tool will not be as successful as you would like.

To get buy-in, demonstrate to management how it will become the ultimate touch point for interaction and awareness of the company travel policy, and for users, make it fun!

Once your tool has been implemented and people are using it, says Cooke, make sure you run regular reports and communicate leader-boards to managers and the travellers themselves; this will encourage those who already use the tool to continue, and may pique the interest of those who have yet to use it.

CWT advisors will be at SPE Offshore in September to demonstrate how to stimulate compliance through competitive gaming behaviour - by earning points, prizes and getting peer recognition and ranking for booking in policy. These tactics allow the company to strike deals with key suppliers and carriers on frequently used routes to save money.

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39

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Clair Ridge Installation QUID & GM modules- BP PLC 42

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BP

Group: Continuing to succeed Oil and gas giant BP, with its global workforce of more than 83,000 people, continues to be an innovative force in today’s marketplace and one project more than any other highlights this – Clair Ridge.

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43

BP Group

C

Clair Ridge GM & LQ modules onboard Dockwise Mighty Servant- BP PLC

lair Ridge is a £4.5 billion investment in the second phase of development on the Clair field, which lies 75km to the west of the Shetland Islands. The project will comprise two new bridgelinked platforms, as well as new pipeline infrastructure to connect to processing facilities on Shetland. Production from Clair started in 2005 from the first phase facilities, which are designed to continue producing until 2028. About 80 million bbl have been produced thus far. Oil and gas is exported via pipelines to the Sullom Voe terminal on Shetland where it is processed. Full production is expected to commence in late 2016.

The Clair reservoir was first discovered in 1977. In the 1980s ten appraisal wells were drilled. This activity demonstrated that the structure extended to an area of some 400 square kilometres (150 sq mi) with static oil-in-place, although it failed to confirm the presence of economically recoverable reserves. Two further wells were drilled in 1991, two in 1992 and one in 1995.

In 1996 there was a breakthrough in the drilling and extended well testing (EWT) of one well. The EWT was followed by the side-tracking of an offset well into the pressure sink created by the EWT. The 1996 well test results set the scope for the 1997 drilling programme and triggered interest in a first phase of development.

Two further wells were drilled in 1997 to appraise the ‘Graben’ and ‘3A’ segments to reduce uncertainty in these areas adjacent to the core area.

In May 1997 it was agreed by the Clair partners to jointly develop the field. BP was appointed as the operator and programme coordinator. A development plan was approved 44

Oil, Gas and Shipping Magazine (www.ogsmag.com)

in 2001, representing an investment of £650m by BP and its partners, ConocoPhillips, Chevron and Shell, in the project. The production facilities were installed in 2004. The first stage of the development was inaugurated on 23 February 2005.

The project primarily involves the installation of two bridgelinked platforms at a water depth of approximately 140m, the drilling of 36 wells (26 producing wells and 10 water injectors), and a tie-in to the existing Clair Phase 1 export pipeline system.

The platforms will include a drilling and production (DP) platform and a 9,000t quarters and utilities (QU) platform. The installation of the DP and QU steel jackets weighing 22,300t and 9,000t respectively was completed in August 2013, while the topsides are expected to be installed late in 2015. Initial drilling works for the project include the pre-drilling of seven wells using an eight-slot subsea template with the help of a semi-submersible drilling rig. The remaining wells, on the other hand, will be drilled by the DP platform over 12 years.

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The project involves the installation of two bridge-linked platforms at a water depth of approximately 140m, the drilling of 36 wells and a tie-in to the existing Clair Phase 1 export pipeline system

46

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BP Group

Clair Ridge Installation- LQ module approach- BP PLC

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47

Clair Ridge InstallationLQ module- BP PLC

“In Norwegian tradition the platform jackets have been formally named. The largest is called Odin, after the most powerful Norse god.

The smaller jacket has been named Frigg - Odin’s wife” The produced oil will be exported to the Sullom Voe Terminal (SVT) via a new 6.5km long and 22in diameter pipeline connected to the existing Clair Phase 1 oil export pipeline, whereas the produced gas will be exported to the SVT via a new 14km long and six inches diameter pipeline connected to the west of the Shetland pipeline system.

48

Oil, Gas and Shipping Magazine (www.ogsmag.com)

In August last year BP and its co-venturers confirmed the safe installation of the Clair Ridge platform jackets, a major milestone in the Clair Ridge project. The platform jackets were made at the Kvaerner yard in Verdal, Norway. In Norwegian tradition they have been formally named. The largest is called Odin, after the most powerful Norse god, reflecting the size of the jacket. The smaller jacket has been named Frigg - Odin’s wife.

In June this year BP announced the safe installation of the new Clair Ridge platform’s quarters and utilities (QU) topside modules, and so another milestone is achieved. The QU platform comprises three modules—the quarters and utilities integrated deck (QUID), which has a lift weight of 9,400te; the power generation (GM) module, which has a lift weight of 4,550te; and the living quarters (LQ) module, which has a lift weight of 2,210te. They were safely lifted onto the pre-installed jackets by the Heerema Thialf heavy-lift vessel.

“The safe installation of these three topside modules is a fantastic

BP Group

Clair Ridge quick facts Clair Ridge is a £4.5 billion investment in the second phase of development The Clair reservoir was first discovered in 1977 BP was appointed as the operator and programme coordinator in May 1997 The installation of the DP and QU steel jackets was completed in August 2013 The Clair Ridge development will be able to produce an estimated 640 million barrels of oil over a 40-year period, with peak production expected to be up to 120,000 barrels of oil per day The produced oil will be exported to the Sullom Voe Terminal via a new 6.5km long pipeline connected to the existing Clair Phase 1 oil export pipeline

achievement by the project team,” said Trevor Garlick, regional president for BP’s North Sea business. “In a challenging time for the industry, this project shows the potential of our basin and why it is so important that we work to ensure a competitive future business.”

BP describes Clair Ridge as the first sanctioned large-scale offshore enhanced oil recovery scheme using reduced salinity water injection to extract a higher proportion of oil over the life of the field. To reduce the environmental impact of the project, the platforms will be powered using dual-fuel power generators, incorporating waste heat recovery technology. Vapor recovery will also be used to capture and recycle low pressure gas for use as fuel or for exporting to shore.

The Clair Ridge development will have the capability to produce an estimated 640 million barrels of oil over a 40-year period, with peak production expected to be up to 120,000 barrels of oil per day. The project is headquartered in London, where over 750

people are currently employed.

About 30% of the £2.1bn base cost of the project is in the UK and around 80% of the estimated £1.1bn of drilling costs will be spent in the UK. More than 80 British companies are providing engineering design and support services, hook up and installation services, manpower and a wide range of engineered equipment.

A project of this size and longevity requires secure, long-term partnerships and BP has made use of its extensive network of suppliers and subcontractors, to ensure Clair Ridge meets cost and timeline targets.

In addition, BP has been able to recruit an additional 600 staff internally, including offering new engineering apprenticeships.

Other projects

Clair Ridge is a flagship project, but it’s not the only one. Other significant upstream projects include Kizomba Satellites 2, In Salah Southern Fields, Greater Plutonio 3, Western Flank A, Oil, Gas and Shipping Magazine (www.ogsmag.com)

49

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Thunder Horse Water Injection, In Amenas Compression Point, Thomson Quad 204, Juniper, Persephone, Oman Khazzan and Thunder Horse South Expansion. All are scheduled for completion between now and 2017.

Kizomba Satellites phase 2 is a subsea infrastructure development of the Kakocha, Bavuca and Mondo South fields, tied back to the existing Kizomba B and Mondo floating production, storage and offloading (FPSO) vessels and is expected to recover around 190 million barrels of oil. The project scope includes subsea wells, FPSO topside modifications and installation of flowlines and subsea equipment. The development is located approximately 150 kilometres off the coast of Angola in water depths of around 1350 metres.

“In Salah Gas, a joint venture with Statoil and Sonatrach, is one of the largest dry gas joint venture projects in Algeria” 52

Oil, Gas and Shipping Magazine (www.ogsmag.com)

In Salah Gas, a joint venture with Statoil and Sonatrach, is one of the largest dry gas joint venture projects in Algeria. The venture involves the development of seven proven gas fields in the southern Sahara, 1,200km south of Algiers, and has been onstream since July 2004.

Greater Plutonio Phase 3 started up in June this year and is expected to sustain production through the existing Greater Plutonio FPSO, in Block 18, by developing six wells (four producers and two water injectors), connected into the existing subsea infrastructure.

The Western Flank A project is expected to extend the production plateau of BP’s assets in the Australian North West Shelf by approximately two years. The project develops the Goodwyn H and Tidepole fields to deliver over 230 million barrels of oil equivalent with five subsea wells tied back to the existing Goodwyn A platform. The project scope also includes brownfield modifications to the topsides and the installation of a new riser.

The Thunder Horse field is located around 120 miles southeast of New Orleans in over 6,000 feet of water. Phase 1 of this water injection program is expected to develop 65 million barrels of oil equivalent (gross) of the Pink reservoir resources as well as establishing pressure support. Phase 1 scope comprises refurbishment and replacement of existing topsides and subsea

BP Group existing plant. It is expected to develop 216 million barrels of oil equivalent and to produce 107,000 barrels of oil equivalent per day at its peak.

Point Thomson is a remote natural gas field located on Alaska’s North Slope, approximately 60 miles east of Prudhoe Bay. It is estimated to hold about 25% of known natural gas on the North Slope. Processing facilities include separation, compression and utilities plants, three new wells and gathering and condensate export lines. The project is designed to produce 10,000 barrels per day of condensate at start-up. A pipeline is being installed with capacity of 70,000 barrels per day, which will take gas and condensate to the Trans-Alaska Pipeline.

The Juniper project includes the construction of a normally unmanned platform, together with corresponding subsea infrastructure. Fabrication began in 2014. The Juniper facility will produce gas from the Corallita and Lantana fields located 50 miles off the south-east coast of Trinidad, in water depth of approximately 360 feet. The development is expected to include five subsea wells and to have a production capacity of approximately 590 million standard cubic feet per day. Gas from Juniper will flow to the Mahogany B hub via a new six-mile flowline.

The Persephone gas field is located 85 miles north-west of Karratha, Western Australia, in a water depth of approximately 415 feet. The development concept is a two well subsea tieback to the existing North Rankin complex.

This first phase of the Khazzan field development plan involves drilling approximately 300 wells using several drilling rigs.

The project is expected to develop circa seven trillion standard cubic feet of gas and deliver plateau production of one billion standard cubic feet of gas per day and 25,000 barrels per day of gas condensate. The full field development involves a 15-year drilling programme, with production tied back to a new central processing facility in Block 61, via a 315-mile gathering system.

Downstream overview

equipment, procurement and installation of new equipment and the drilling and completion of two water injection wells. The South Expansion Project comprises a new subsea drill centre located two miles from the Thunder Horse platform. Three new wells and an existing fourth well are expected to tie-into the new drill centre. Topsides scope is minimal as a result of maximising use of existing subsea infrastructure.

“Point Thomson is a remote natural gas field located on Alaska’s North Slope, approximately 60 miles east of Prudhoe Bay” In Amenas is a wet-gas field, also operated in partnership with Algerian state oil company Sonatrach and Statoil. The field is approximately 810 miles from Algiers and about 40 miles west of the Libyan border. The project scope consists of two gas turbine compressor trains, a new slug-catcher, a produced water surge drum, associated utilities and control systems and tie-ins to the

In 2014 BP saw continued improvement in its process safety and delivered strong operational performance resulting in profit and operating cash flow growth. The downstream segment has significant operations in Europe, North America and Asia, and also manufactures and markets products in Australasia, Africa and Central and South America. It is made up of three businesses.

• Fuels includes refineries, fuels marketing and

convenience retail businesses, together with global oil

supply and trading activities that make up fuels

value chains (FVCs). It sells refined petroleum products

including gasoline, diesel and aviation fuel.

• Lubricants manufactures and markets lubricants and

related products and services globally, adding

value through brand, technology and relationships, such

as collaboration with original equipment manufacturing partners.

• Petrochemicals manufactures products at locations

around the world, mainly using proprietary

BP technology. These products are then used to

make essential consumer products, such as paint, plastic

bottles and textiles.

BP’s high-quality and material project portfolio is set to underpin growth to 2020 and beyond. More than 900 mboed of new net production is expected by 2020 and 2015 - 2020 project margins are set to be over 35% greater than the 2014 segment average.

Oil, Gas and Shipping Magazine (www.ogsmag.com)

53

REFUELING THE MARKET: A BUNKERING STORY – THE JOURNEY OF A FICTIONAL CONTAINER SHIP LNG BUNKERING WITH EBARA PUMPS by Christopher Campos, BSEE, MBA

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unkering facility projects are being discussed all over the world and in a matter of a few short years, we will see them materialize and influence the manner in which we store, transport and supply LNG as a fuel. As members of the global oil & gas industry, it is important that we consider the nature of what this will look like from a domestic prospective.

In order to describe this scenario, let us begin with a brief narrative of the typical operations from a fictional bunkering facility. A containership from the Port of Busan, Korea is arriving after its long voyage to the Port of Long Beach, California. As it enters into the new North American Emissions Control Area (ECA), it begins the docking procedures for tug-boat navigation

1 Area of the North American ECA 54

Oil, Gas and Shipping Magazine (www.ogsmag.com)

into the dock, anchoring and container offloading of its cargo.

The Port of Long Beach is within the new North America ECA which requires a strict reduction in particulate matter (PM2.5) from the coastal areas of Canada, United States, Alaska and Hawaii. These restrictions require vessels operating and docking in these areas to reduce their PM2.5 in order to conduct business or perform cargo transfers.

The requirements of the North American ECA was developed by the Environmental Protection Agency (EPA) in cooperation with International Maritime Organization (IMO) and were amended into the world standard International Convention for the Pollution of Ships (MARPOL). For ship operators to operate their vessel into these North American ECA zones, they must adhere to the requirements shown in the chart above.

The fictionalized containership would be designed with the latest Main Engine Gas Injection (ME-GI) technology utilizing LNG as the main fuel source. This new engine technology provides an estimated 23% reduction in carbon dioxide (CO2) as well as reductions in carbon monoxide (CO), nitrous oxide (NOx) and sulfur oxide (SOx). The reductions in PM2.5 allow the containership to legally navigate the North American ECA and allows the owner to conduct business in the United States.

To store LNG on the containership, the vessel requires a 1000 m3 LNG tank that is connected to the engine’s complex LNG fueling system and partial re-liquefaction system. Although the tanks and the additional fueling equipment take up valuable space, the reduction in fuel consumption and reduction in particulates makes the containership one of the most efficient vessels on the planet. Additionally, the containership meets the IMO requirements for several of the world’s ECA zones.

The Port of Long Beach would have an LNG bunkering operation that would allow refueling of LNG powered vessels, containerships, tugs and cruise liners. The Port would work in cooperation with a private LNG fueling operator for the supply, transport and transfer of LNG to these vessels. This operation is

capable of truck-to-ship, barge-to-ship and ISO container tank replacement. An LNG barge docks alongside the containership and prepares its LNG transfer to the tank.

Of course, this is all theoretical and a fictional scenario as the containership is a sample of many new vessel designs and the Port of Long Beach currently does not have LNG operations.

However, if one were to apply this scenario to real world companies such as TEEKAY Shipping or BW Maritime with real LNG capable ports such as the Port of Jacksonville, Florida or Port Fourchon, Louisiana, this hypothetical scenario would quickly become very real. The ECA zones are already in effect and vessels of all types are already being built or modified for cleaner burning duel fuel engines or ME-GI technology. The demand for LNG and more importantly, the infrastructure to supply LNG is significant.

International Ship Engine & Fuel Standards (MARPOL Annex VI)

BUNKERING BARGE:

The construction of new build vessels with more efficient LNG engines is already taking place which implies that the supply chain for LNG as a fuel has to be developed. This was the vision of TOTE Inc. to operate the first LNG powered container ship in U.S. waters. Working very closely with the Port of Jacksonville and Puerto Rico (the intended route of these containerships) and separately the Port of Tacoma, they negotiated a probable plan of action for the supply of LNG to their containerships. For the Port of Jacksonville, a ready supply of LNG at port would be required – something that was nonexistent. The Port of Jacksonville and TOTE Inc.are working with WesPac Midstream and Clean Marine Energy, a growing supplier of LNG product in the new small scale market. WesPac Midstream, LLC developed a small LNG storage facility that could re-fuel an LNG barge. This barge would then dock next to the TOTE Containership and refuel its LNG tanks.

Just as TOTE Inc. needed a supply of LNG, WesPac Midstream needed an LNG barge. The Jones Act of 1920 acts as America’s Merchant Maritime Law. Implemented almost 100 years ago, it was intended to protect American sailors, shipbuilders and operators. The Jones Act also acted as a government measure during wartime periods. Still being followed today, there is a clause that essentially requires that any vessel being solely operated in domestic waters has to be built by American shipbuilders.

WesPac Midstream turned to Conrad Orange Shipyard located in the small town of Orange, Texas on the Louisiana border. Conrad Industries has been operating for 67 years, founded by J. Parker Conrad in 1948. Originally building wooden boats to service the Gulf Coast seafood industry, Conrad Industries has grown to a publically traded corporation with projects including barges, pushboats, tugs, ferries, dredgers, repair, conversions and LPG barges. Although LNG is a much colder liquid with different properties than LPG, their experience gave WesPac Midstream the confidence to contract Conrad Orange Shipyard with the first LNG bunkering barge in North America.

As a supplier of pumps, EBARA Cryodynamics (EIC Cryo) became involved with the project by working closely with GTT North America, ABS, Gas Entec out of South Korea and eventually Conrad Orange Shipyard. EIC Cryo developed two options for the project. The first option was a standard, fixed speed LNG Cargo pump that had been used on previous small scale projects. The 8EC-12 submerged motor cargo pump is a compact design that can be easily implemented in the tank’s membrane technology. The integral pump and motor design removes the motor from the ex-tank hazardous area zone and also reduces the size of the penetration into the barge’s tank hull.

A hazardous area certified junction box, power cable and glass seal feed-through prevent gas leakage due to the power cable penetration. These pumps would be capable of offloading the entire barge in less than 2 hours.

The second option started with a development that EIC Cryo had been working on with Gas Entec as a fully optimized cargo pump designed specifically for the operation of re-fueling LNG tanks.

The pump would be based on the existing submerged motor cargo pump, but it would have a larger motor to accommodate variable frequency power supply. Using the VFD, the pump’s operating capabilities would be greatly expanded. Further discussion with many of the parties involved determined that the VFD would be crucial for not only fueling operations, but also to reduce the NPSHr for stripping the tanks. Therefore, EIC Cryo is working on supplying the VFD designed cargo pump for the LNG barge.

OPTIMIZING LNG CARGO PUMP OPERATION:

Supplying equipment to projects as large as 8 million tons per annum (mtpa), EIC Cryo is very familiar with moving large

EIC Cryo Cargo Pump

Oil, Gas and Shipping Magazine (www.ogsmag.com)

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amounts of LNG. Although the design requirements and hazardous area requirements are very specific, the concept of unloading and transferring LNG via a submerged motor pump is not much different than that of turning on a hose and filling up a watering can.

Now, imagine re-fueling your automobile’s gas tank with nothing but a faucet and hose. The process could become cumbersome depending upon the size of the hose, the faucet’s location and rate of flow. One could imagine a large portion of fuel would be lost due to the operation. This is why pumping stations have highly regulated and maintained gas pumps with shut-off valves and vapor recovery and backflow prevention systems in order to reduce the possibility of lost fuel.

LNG barges will also need these capabilities where the prevention of leakage or lost LNG is highly regulated and controlled. The operator needs a way to control the pump operation so that capacity can be reduced during “topping off ” operations and low keel operations. Additionally, not all tanks are created equal, so different transfer rates and pressures may be needed to make the barge more universal.

This is the goal of EIC Cryo’s variable speed LNG cargo pump. As mentioned in the previous section, the pump would be modified with a larger motor to accommodate a higher motor rating which would allow the pump to have a larger operating range. By selecting the appropriate frequency from the VFD, the pump’s speed could be increased or decreased. This means the operator can select a range of pressures operating at a single transfer rate (i.e., transferring at 500 m3/hr (2,200 gpm), the operator could select a discharge pressure of 7 ~ 14 Barg (100 ~ 200 psi).

Conversely, the operator could modify the operating range by higher capacity or lower capacity by sacrificing or increasing the discharge pressure (i.e., discharging at 9.7 Barg (140 psi), the operator could transfer down to 114 m3/hr (500 gpm) or up to 681 m3/hr (3,000 gpm).

Bunkering facilities are anticipated to grow not only in North America, but also in Europe, Asia and Australia. Given the size of most of these vessels and barges, a whole new market of shipbuilders, contractors and investors has opened up. EIC Cryo has taken the initiative to work with as many of these partners as possible to help develop and lead this new market. By utilizing the understandings of how the equipment is to be operated, EIC Cryo can develop customized equipment to meet these needs.

Above: Variable Speed Cargo Pump Operating Range 56

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Interview: Thanos Pallis, secretary general of MedCruise, the association representing cruise ports in the Mediterranean and adjoining seas What excites you about your role in MedCruise?

MedCruise is a vibrant association representing over 100 ports and 30 associate members in 20 countries in the Mediterranean and its adjoining seas. The expansion of cruising over the last twenty years has been based on the attraction of these magnificent destinations and the capacity of respective ports to accommodate cruise calls and passengers.

The driving force behind my joining the Association in 2013 was the challenge to ease the transformation of this growth to a sustainable level. Expanding further the constructive and collaborative work that has already been done since the establishment of MedCruise is a source of daily excitement for all of us. Preserving and enriching the diversity of the experiences offered to our members and strengthen their presence in the cruise industry.

How does MedCruise promote the cruise industry?

Our Association offers a unique range of services to all ports and associate members. We provide the infrastructure for our members to be present in all major cruise related events around the globe, in Europe, America, and Asia.

In most cases, MedCruise members can exhibit inside the MedCruise Pavilion enjoying preferential treatment in terms of location, centrality and cost.

Beyond marketing and promotion, we represent Med ports in decision-making forums, we develop studies allowing the sharing of best practices and benchmarking, and we organise 58

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professional development courses for our members.

MedCruise has been instrumental in promoting the collaboration of cruise ports in Europe, forming the Network of Cruise and Ferry Ports last year within the European Sea Ports Organisation (ESPO), to promote best practice in all European cruise ports.

MedCruise has also played a key role in putting the promotion of cruising on the agenda of European institutions. Last March marked the official opening by the European Commission of a pan-European dialogue searching for a long-term strategy to benefit cruising throughout Europe.

Finally, we are the first Association to visit Asia, which we have done for two successive years, as we see there a first-class opportunity to develop a source market that will bring more cruise passengers to the Med in the future.

MedCruise is heading ‘East’ with this expansion including participation in cruise events in Asia, the circulation of special brochures in Chinese and Korean presenting the attractions of the Mediterranean region.

What are the prospects for growth within the Mediterranean cruise industry?

Over the last decade, despite the global financial crisis of 2008, ports in the Med have experienced the benefits of cruise lines’ expansion strategies. Given the strong consumer interest in cruising, the expansion of destinations and itineraries, and not least the further modernisation of the cruise fleet and

Interview

cruise product, stakeholders look forward to further growth.

Even modest estimates forecast that the number of passengers cruising worldwide in 2018 will be more than 24 million.

Whether the Mediterranean region will continue to grow, either in absolute numbers or in terms of market share, is subject to a number of parameters. With cruise ports continuing to respond to the challenges, to adapt operational practices and infrastructures, and to advance the integration of the cruise related strategies of various destination stakeholders, the wide variety of cruise destinations, features and cultures in the Med and its adjoining seas is a positive foundation for expansion opportunities to be realised.

How significant is Gibraltar’s cruise industry in the Mediterranean?

Gibraltar is a cruise destination that has long attracted the genuine interest of cruise passengers and cruise lines. Two hundred cruise calls and approximately 300,000 passengers visit Gibraltar every year, with the port adjusting continuously and effectively to the challenges that occur. There is every prospect that it will continue to be an essential passage in some of the most exciting cruise itineraries in the Med.

Why are Mediterranean cruises so appealing to tourists?

The Mediterranean is a unique world region. It unites three continents and more than 20 different countries with diverse cultural identities. With cruise itineraries that last between four and 15 days, cruise passengers have the opportunity to discover the history, the culture, the food, the music and the people of different civilizations that no other cruise region provides.

The short distances and travelling time between destinations is an additional plus for the region, enabling first time cruisers to pick the destinations of their dreams, and repeaters to select from a variety of destinations. Not surprisingly this is frequently named ‘a region made for cruising’.

What has been the greatest achievement of your career?

After working in the port industry and studying ports for more than two decades, I would highlight three best moments. The first one was the trust of UNCTAD and OECD to work for them on the financing of port developments, and on cruise shipping and cruise ports respectively. The second one was my appointment by the Greek Government as General Secretary for Ports and port policy. Last, but not least, a key achievement has been the decision of MedCruise to renew my term as Secretary General of the Association for a second term.

Your most memorable cruise ship experience?

My first one, being a youngster in the early 1980s cruising the gulf of Saronicos in Greece with my parents on board an Epirotiki Lines vessel continues to be the most magical cruise moment of my life.

Your favourite book?

You learn a lot reading history, so I would say The Age of Extremes: The short 20th century by my favourite historian, the late Eric Hobsbawm.

Your favourite cruise ship?

I have to admit that I was impressed when on board Oasis of the Seas. Yet each vessel I have visited has its own unique charm to be discovered – an open invitation to join a cruise.

Paul González-Morgan Editor, Gibraltar Shipping Email: shippinggib@gmail.com Twitter: @ShippingGib Web: www.gibraltar-shipping.com Oil, Gas and Shipping Magazine (www.ogsmag.com)

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Asgard B (Oyvind Hagen-Statoil ASA) 60

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Statoil: More to discover Statoil is an international energy company with operations in 37 countries. Building on more than 40 years of experience from oil and gas production on the Norwegian continental shelf, Statoil is committed to providing the world’s energy needs in a responsible manner, applying technology and creating innovative business solutions.

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S

tatoil is headquartered in Stavanger, Norway with approximately 22,000 employees worldwide, and is listed on the New York and Oslo stock exchanges. The company has operations in exploration and production, natural gas and new energy. This feature looks at Statoil’s major operations, which despite being located mainly in the Norwegian shelf, have a significant global reach.

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Statoil

Heidrun (Harald Pettersen- Statoil ASA)

Ongoing operations: Heidrun

This field in the Norwegian Sea has been producing oil and gas since October 1995 from a floating tension leg platform with a concrete hull. Heidrun was discovered in 1985 by Conoco, which served as operator for the exploration and development phase.

A total of 76 wells are planned on the main field, including 51 producers, 24 water injectors and one gas injector. The north flank of Heidrun was brought on stream in August 2000.

Oil from the field is primarily shipped by shuttle tanker to Statoil’s Mongstad crude oil terminal near Bergen for onward transport to customers. Gas from Heidrun is piped to Tjeldbergodden in mid-Norway and provides the feedstock for the Statoil’s methanol plant there. Since 2001, the field has also been tied to Åsgard Transport. Heidrun gas is piped through this trunkline to Kårstø

north of Stavanger and on to Dornum in Germany – a total distance of roughly 1400 kilometres.

Heidrun has become the first Statoil field able to handle all produced water without any environmentally harmful discharges.

This follows investment of some NOK 600 million in a plant for injecting such water - and any oil or chemical residues it contains - back into the reservoir. The result is zero harmful discharges under normal operation and the injected water serves as pressure support to improve oil recovery. The injection facility is able to handle just over 110,000 barrels of produced water per day.

Gina Krog

Gina Krog is located about 30 kilometres northwest of the Sleipner gas field and the discovery will be developed to Sleipner.

Gina Krog (previously Dagny), which was originally a minor gas discovery just north of Sleipner, is a field that has been considered for development on a number of occasions since it was discovered Oil, Gas and Shipping Magazine (www.ogsmag.com)

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In 1988, Raccortubi S.p.A. established Tecninox S.r.l., manufacturer of butt weld fittings in stainless steel, duplex, superduplex, 6Mo and nickel alloys, with the intention of becoming a manufacturer as well as a stockist and supplier.

It recognised that, by incorporating the Tecninox production, it could be of added value to its customers thanks to a new-found ability to supply the critical fittings element of a package quickly, on demand and to customer specifications.

Over the course of the years, Raccortubi and Tecninox have worked together for the continuous improvement of productive processes via automation, use of advanced technology and evolution of quality assurance, meaning that today the achievement of added value for the client is stronger than ever before. Raccortubi Group can offer customers fittings to NORSOK M-650 Ed. 4 specifications, manufactured by its integrated production plants, from strategically placed distribution points around the world. Raccortubi’s subsidiaries in Dubai, Brazil and Singapore are conveniently located near shipbuilding ports to supply pipes, tubes, fittings and flanges in stainless steel and special alloys directly from stock.

Raccortubi Group is making sure that it has fully-tested and certified piping materials in full compliance with the vast majority of end-user requirements at its disposal, from both production and stock, to fulfil customer needs to short timescales.

PETROL RACCORD EXTENDS QUALITY HOMOLOGATIONS WITH NORSOK M-650 Ed. 4 approval Under Raccortubi ownership, Petrol Raccord has renewed its commitment to the most up-to-date quality standards, adding NORSOK M-650 Ed. 4 certificates to its already-substantial collection.

Using the hot forming method, Petrol Raccord manufactures butt weld fittings up to 56”, almost without wall thickness limitations, for the oil & gas, power generation and petrochemical industries. It has its own internal laboratory and, thanks to its experience and expertise, holds an impressive number of end-user approvals, as well as ASME certification for the nuclear industry.

Both Raccortubi Group’s integrated manufacturing plants, Petrol Raccord and Tecninox, are implementing NORSOK M-650 Ed. 4 standards, which have been cemented in place as part of their day-to-day procedures. Not only are such norms practised without fail, but the resulting top-notch processes and quality controls are constantly under analysis for improvement and further development.

By ensuring manufacturing to such specifications at its production facilities, Raccortubi Group is guaranteeing the supply of the highest-quality fittings in stainless steel, duplex, superduplex, 6Mo and nickel alloys in the provision of complete project packages.

raccortubigroup.com

in 1974. When oil and gas were proven in the neighbouring structure Gina Krog Øst (previously Dagny) in 2007, the Gina Krog landscape was reviewed again. Further delineation during the period 2008 to 2011 determined a contact between Gina Krog and Gina Krog Øst and confirmed substantial volumes of oil under the entire structure. The development of Gina Krog, which will be among Statoil’s major new developments with an estimated 225 million barrels of oil and gas, illustrates the importance of exploring and developing in mature areas with established infrastructure.

In June this year the Gina Krog jacket was installed in the North Sea and the top floors of the living quarters were lifted into position at Stord – two major operations carried out as planned and without any incidents. A balance of timing, strength and delicacy is required to achieve an operation like this.

On Friday 19 June the barge carrying the Gina Krog jacket left the Hereema Fabrications yard in Vlissingen, manoeuvred 66

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“The development of Gina Krog illustrates the importance of exploring and developing in mature areas with established infrastructure” by four tugboats into practically open waters. The Fairmount Expedition tug took over and steered to sea with the barge in tow.

The Hermod heavy-lift vessel headed for the same location in the North Sea, where it would install the jacket on the seabed.

Statoil

Heidrun (Øyvind Hagen- Statoil ASA)

The following day the Boa Odin tug left the Aluship yard in Gdansk, Poland, towing a barge carrying the top floors of the Gina Krog living quarters on course for Leirvik, Stord. There, the first section of the living quarters constructed at Stord was waiting for the top module from Poland. The Uglen heavy-lift vessel also arrived at the island’s main port, ready for the lifting operation.

On Friday 26 June, almost precisely one week after the jacket left the shipyard in the Netherlands the barge was tilted by trimming the ballast. Weighing more than 17,000 tonnes including rigging and floatation tanks, the huge jacket slid slowly and under control into the sea, where it was left floating horizontally in the water.

After personnel were transported to the jacket to rig up for the lifting operation, Hermod reached its lifting position and the huge jacket legs were safely installed on the seabed in their correct positions.

“The operation was successful and went according to plan and without any incidents,” says Rune Danielsen, head of transport

and installation in the Gina Krog project. “This operation has been planned for 2.5 years, and we had to change to a different heavy-lift vessel in the process. It is wonderful to see the jacket installed on the seabed, where it will remain for several decades,” says Danielsen.

Over the next few days the Hermod heavy-lift vessel drove the platform’s 18 piles, each measuring more than 90 metres, into the seabed, ready to install the 265-tonne predrilling module. The Uglen heavy lift vessel placed it safely on top of the Stord module.

“The lifting operation went according to plan and without any incidents. The module from Poland was sprayed with seawater from the waves during the voyage and will be flushed with freshwater before we continue the completion and fitting of the living quarters,” says Bjørn Iversen, project leader for the Gina Krog living quarter.

The next major milestone will be to jack up the whole module and install the lifeboat suspension system from Harding in Rosendal.

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“Thanks to systematic maintenance of Norne for 17 years the vessel is now in a good technical condition. In light of this we are now considering extending Norne’s life to 2030”

Norne (Anne-Mette Fjærli- Statoil ASA)

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Statoil

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Project manager for the Gina Krog facility development, Vidar Martin Birkeland, has followed the project from South Korea, where the topsides are under construction. “It is thrilling to pass two major milestones at the same time, but that is how it is in the world of projects. It is great fun when everything goes well as it did here, proving that we have clever people who have planned the operations well,” says Birkeland.

And there will be more milestones to reach this year. When the jacket is properly piled into the seabed and the predrilling module is installed, the Maersk Integrator drilling rig will arrive. It is a completely new drilling rig, delivered from Singapore earlier this year.

“Having arrived at the field around the middle of July, the rig will prepare for drilling of the first production well at the Gina Krog field. This year is very exciting for Gina Krog, and the activity is so high that we are spending NOK 1 million per hour, day and night, during the whole year,” concludes Jan Einar Malmin, vice 72

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president of Gina Krog field development.

Norne

Production began from Norne in the Norwegian Sea on 6 November 1997. Located 85 kilometres from Heidrun, this area has a water depth of 380 metres. The field has been developed with a production and storage ship tied to subsea templates.

Flexible risers carry the wellstream to the ship, which rotates around a cylindrical turret moored to the seabed. Risers and umbilicals are also connected to the turret. The ship has a processing plant on deck and storage tanks for stabilised oil. Gas has been exported from Norne since February 2001. It travels through the Norne Gas Export Pipeline and the Åsgard Transport trunkline, via Kårstø north of Stavanger, to continental Europe.

The field is roughly 1,400 kilometres from the landfall at Dornum in Germany. Initially scheduled to be shut down during 2014, Statoil’s plan now is to extend the life of the Norne field to 2030.

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Norne by night (Harald Pettersen- Statoil ASA)

“Thanks to systematic maintenance of Norne for 17 years the vessel is now in a good technical condition. We have also aimed to facilitate improved recovery and phase-in of new discoveries to the Norne vessel. In light of this we are now considering extending Norne’s life to 2030,” says Norne operations vice president Kristin Westvik.

So far Norne and its satellites have produced some 700 million barrels of oil equivalent, and have added considerable values for Statoil, partners Eni, Petoro, Dong, and for northern Norway.

The recovery factor for the main Norne field today is 56.5% – a top result worldwide for production from subsea fields. Today, production flows from fifteen subsea templates thanks to several successful exploration campaigns controlled from Statoil’s exploration community in Harstad. In the Norne licence alone 26 exploration wells have been drilled, five of them successfully; the Norne, Stær, Svale, Dompap and Fossekall fields. The last subsea template to be installed was the Skuld fast-track project in 2013,

which represented a total investment of almost NOK 10 billion.

In addition the Alve field and the Eni-operated Marulk field have been tied in to the Norne FPSO. “We now aim to increase the recovery factor to 60%. The remaining resources in the Norne area may total as much as 300 million barrels of oil equivalent—the equivalent of an Aasta Hansteen field,” Westvik says.

The focus now is on progressing the good maintenance work to keep up the good technical condition of the FPSO hull. Statoil will establish a project in 2017 detailing the scope and time of investments, and will also apply for an extended technical life for Norne by 2021.

Peregrino

After just four years in production, the Peregrino field in the Campos basin offshore Brazil has passed a significant milestone, with 100 million barrels of oil produced since April 2011. The field, jointly owned by Statoil and Chinese Sinochem, achieved Oil, Gas and Shipping Magazine (www.ogsmag.com)

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“Peregrino demonstrates the power of the possible, and we are proud to operate a project that is both exciting and challenging. These results reflect the professionalism of our people, and the application of technology developed by Statoil, in Brazil and elsewhere.”

Peregrino A platform (Øyvind Hagen- Statoil ASA)

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Statoil

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the milestone on 2 August this year.

“We are pleased to have reached a major milestone in our Peregrino operations,” says Pål Eitrheim, country manager of Statoil Brazil. “Peregrino demonstrates the power of the possible, and we are proud to operate a project that is both exciting and challenging. These results reflect the professionalism of our people, and the application of technology developed by Statoil, in Brazil and elsewhere. We are constantly learning and we look forward to reaching new milestones as we continue to develop this large field,” he says.

According to a report published by the Brazilian National Agency of Petroleum, Natural Gas and Biofuels (ANP) in March 2015, Peregrino is Brazil’s eighth largest field, and has the second heaviest oil ever produced in Brazil. It is also the largest field operated by Statoil outside Norway and accounts for about 12% of its international production (around 720 thousand barrels per day). The recoverable reserves are estimated between 300-600 76

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“According to a report published by the Brazilian National Agency of Petroleum, Natural Gas and Biofuels (ANP) in March 2015, Peregrino is Brazil’s eighth largest field, and has the second heaviest oil ever produced in Brazil” million barrels.

The operation includes two fixed drilling platforms (WHP A and WHP B), and a floating production and storage unit (FPSO

Statoil

Statoil quick facts: Statoil is headquartered in Stavanger, Norway with approximately 22,000 employees worldwide The Gina Krog jacket weighs over 17,000 tonnes Production began from Norne in the Norwegian Sea on 6 November 1997 The recovery factor for the main Norne field today is 56.5% – a top result worldwide for production from subsea fields The Peregrino field in the Campos basin offshore Brazil has produced 100 million barrels of oil since April 2011 Planning of Johan Sverdrup commenced in March 2012 and will be built and installed between 2015 and 2019 The first-phase development of the Johan Sverdrup field will create around 51,000 man-years of work The Mariner Field is located on the East Shetland Platform of the UK North Sea, approximately 150 kilometres east of the Shetland Isles The development of the Mariner field will contribute more than 250 million barrels of reserves, with average plateau production of around 55,000 barrels per day The Aasta Hansteen gas development in the northern Norwegian Sea is on schedule for production start-up in third quarter 2017

Johan Svedrup Field Centre (Statoil- Statoil ASA)

Peregrino), with a production capacity of 100,000 barrels per day. With an excellent track record, Peregrino achieved all its production, efficiency, cost and safety targets in 2014. In January this year, the development plan of Peregrino Phase II was submitted to ANP. With total estimated investments of US$3.5 billion, the project involves a new drilling platform (WHP C) and will add about 250 million barrels in recoverable reserves to the Peregrino field. Phase II of the project will enable the extension of the economic life of Peregrino and is an important and strategic part of Statoil’s ambition to consolidate a strong position in Brazil.

Milestones and future opportunities: Johan Svedrup

The gigantic Johan Sverdrup field, one of Norway’s biggest and

Polarled is a new 480-kilometre gas pipeline running from Aasta Hansteen to Nyhamna, Norway

most profitable industrial projects, will provide enormous value.

The field could produce revenues amounting to NOK 1350 billion and its construction and operation will provide new knowledge, new solutions and new opportunities.

Johan Sverdrup is situated in mature acreage that has been thoroughly studied, and where the most central environmental aspects are that the development receives its power from land; that produced water will be purified and re-injected into the reservoir; and that cuttings drilled with oil-based liquid will either be brought ashore, or purified and discharged offshore.

Planning of Johan Sverdrup commenced in March 2012 and will be built and installed between 2015 and 2019. It’s a tight plan, but feasible. Work in phase 1 is based on standard technology, though development will be demanding due to the size of the project, 200 square kilometres. Statoil’s previous experience of complex, major projects will prove valuable here.

In many ways the project represents the sum of 40 years’ Oil, Gas and Shipping Magazine (www.ogsmag.com)

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“Johan Sverdrup represents all we stand for as an industry and our faith in the future. This will be a gigantic project that will secure energy supply and jobs and result in substantial spinoffs and value for Norwegian society, the industry and the partnership behind the development.�

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Statoil

Johan Sverdrup Field (Statoil- Statoil ASA)

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Mariner with reservoir (Statoil- Statoil ASA)

development and activities on the Norwegian continental shelf (NCS). All the experience, technology and expertise gained during this period will benefit this project.

“Johan Sverdrup represents all we stand for as an industry and our faith in the future,” says Arne Sigve Nylund, Statoil’s executive vice president for development and production. “This will be a gigantic project that will secure energy supply and jobs and result in substantial spin-offs and value for Norwegian society, the industry and the partnership behind the development.”

The first-phase development of the Johan Sverdrup field will create around 51,000 man-years of work nationally, of which as many as 22,000 are expected to be performed by suppliers in Norway and another 12,000 by their subcontractors. Calculations show that 2,700 man-years of work will be created in an average year in the production phase, with 3,400 man-years expected to be created at peak development. Based on estimates from Agenda Kaupang it is possible for the Norwegian supplier industry to be awarded more than 50% of the assignments in 80

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the construction phase and around 90% in the operating phase.

“It is very important for the Johan Sverdrup development that the Norwegian supplier industry positions itself well for the opportunities lying ahead,” says Nylund.

Total investments for the first development phase are NOK 100-120 billion, while production will be in the range of 315,000380,000 barrels per day. Johan Sverdrup will be a long-term project that several generations will bring to maturity and operate.

The 200 sq km field will be developed in stages. The partners are currently working on various development scenarios for the various phases in order to ensure that the first construction phase forms the basis for an overall, integrated development.

“We are planning for a stepwise field development with various installations tied back to a joint field centre. This will ensure continuity and comprehensive resource utilisation and also generate the greatest possible added value for our owners,” adds Nylund. Depending on the future choice of capacities and technical solutions, an early estimate for full development

Statoil the heaviest on the market. To enhance production performance and also assist the separation and refining processes a diluent will be mixed with the oil down hole, just above the reservoir. The crude will be marketed internationally, with a primary focus on Europe. Sharply declining local heavy oil production means that the Mariner blend is seen as potentially attractive to the European refineries when it enters the market.

The development of the Mariner field will contribute more than 250 million barrels of reserves, with average plateau production of around 55,000 barrels per day. The field will provide a longterm cash flow over a 30 year field life. Production is expected to commence in 2017.

The concept chosen includes a production, drilling and quarters (PDQ) platform based on a steel jacket, with a floating storage unit (FSU). Drilling will be carried out from the PDQ drilling rig, with a jack-up rig assisting for the first four to five years.

More than 130 reservoir targets are planned, for production or injection. While the number of well slots at the platforms is less, this will be solved through use of multi-branch technology, side tracks and reuse of slots.

Heavy oil projects such as Mariner have required the development of pioneering technology. Since its discovery in 1981, the Mariner field has been subject to a number of development studies by different operators. Statoil is the first company to put forward a development concept that will fully address the complexities of this field, in particular related to reservoir management, recovery rates and project execution.

Aasta Hansteen

indicates NOK 170-220 billion with daily production put at 550,000-650,000 barrels per day.

Mariner

The Mariner Field is located on the East Shetland Platform of the UK North Sea, approximately 150 kilometres east of the Shetland Isles. The field consists of two shallow reservoir sections – the deeper, Maureen Formation at 1492 meters and the shallower Heimdal reservoir at 1227 meters.

In December 2012, Statoil made the investment decision for the Mariner project, which entails a gross investment of more than $7 billion. Statoil acquired 44.44% and operatorship for Mariner from Chevron in 2007 and a further 20.6667% of Mariner from Nautical Petroleum in 2010. JX Nippon Exploration and Production (UK) Ltd (28.89%) and Dyas Mariner Ltd (6%) are partners in Mariner.

Strategically the Mariner project fits well within Statoil’s heavy oil growth theme. The oil produced from Mariner will be among

The Aasta Hansteen gas development in the northern Norwegian Sea is on schedule for production start-up in third quarter 2017.

The project is being developed in several parts of the world, including South Korea where the hull and topside are being constructed by Hyundai Heavy Industries in a consortium with Technip.

The first offshore work has begun on the seabed with the laying of a fibre optic cable and installation of rocks for the Polarled pipeline. The Aasta Hansteen field will be run from Harstad, Statoil’s new Operations North organisation. The supply base will be located in Sandnessjøen and the helicopter base in Brønnøysund. The planned field development includes a SPAR platform, which will be the first such installation on the Norwegian continental shelf. The SPAR is a floating installation consisting of a vertical column moored to the seabed. The installation features conventional topsides with processing facilities. The risers transporting the gas from the seabed to the platform and further to Polarled will be pure steel, which will be first of its kind on the Norwegian continental shelf. The hull will be fitted with storage for condensate, which will be loaded to shuttle tankers at the field.

“We are building the largest SPAR platform in the world, and we are setting a new depth record of 1,300 metres for a field development and pipeline on the Norwegian continental shelf,” said Torolf Christensen, Statoil’s head of Aasta Hansteen.

Polarled is a new 480-kilometre gas pipeline running from Aasta Hansteen to Nyhamna, Norway. The pipeline facilitates the development of Aasta Hansteen and other fields in the Norwegian Sea. The project includes expansion of the Shell-operated gas plant at Nyhamna. A separate pipeline between Polarled and the Kristin platform will connect new infrastructure to existing infrastructure on Haltenbanken. In addition, preparations will be made for the tie-in of existing and future discoveries in the area.

Julius

In July this year Statoil and its partner Total E&P Norge announced a gas and condensate discovery in the Julius prospect, Oil, Gas and Shipping Magazine (www.ogsmag.com)

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“We are building the largest SPAR platform in the world, and we are setting a new depth record of 1,300 metres for a field development and pipeline on the Norwegian continental shelf �

Aasta Hansteen (Statoil- Statoil ASA)

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Statoil

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Specialists in heat transfer products for the offshore and onshore oil and gas industry

Flex coil supplies coils in all sizes and virtually all material combinations in accordance with the needs, wishes and requirements of the customers.

Flex coil experts are always available to provide advice and guidance on topics such as relevant materials, sound specifications, assembly, operating and maintenance instructions for our products.

See 58 See our our article article on page 86

CONTACT US AT: Knøsgürdvej 115 - 9440 Aabybro, Denmark TEL +45 9824 4999 EMAIL flexcoil@flexcoil.dk WEBSITE www.flexcoil.dk

Statoil

Statoil’s head office (Harald Pettersen- Statoil ASA)

in the King Lear area in the North Sea. Statoil estimates the volumes in Julius to be between 15 and 75 million barrels of recoverable oil equivalent. The well also appraised the King Lear gas and condensate discovery made by the PL146/PL333 partnership in 2012 and provided important information on reservoir distribution and reservoir communication in the King Lear discovery. It is expected that the King Lear volumes will stay within the previously calculated range of 70-200 million barrels of recoverable oil equivalent.

“The King Lear and Julius discoveries are located in one of the most mature parts of the Norwegian continental shelf - just 20 kilometres north of Ekofisk, the first commercial NCS discovery made 45 years ago. The discoveries confirm Statoil’s view that even such mature areas of the NCS still have an interesting exploration potential,” says May-Liss Hauknes, Statoil vice president for exploration in the North Sea. The way in which Statoil works is as important as the goals it achieves. Key to the successful development and execution of its

massive projects are Statoil’s supplier and partner relationships.

The company also applies a precautionary approach and a combination of corporate requirements and risk-based local solutions to manage its environmental performance. The company strives to meet high standards in emissions to air, waste management and impact on ecosystems – wherever it works. This includes integrating environmental and social risk management into its planning and decision-making processes, at all levels in the organisation.

Oil and gas will undoubtedly be an important part of the world’s energy mix for decades to come and Statoil works hard to develop resources responsibly. The company aims to be recognised as the most carbon-efficient oil and gas producer, committed to creating lasting value for communities.

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Flex Coil- Heat transfer solutions for the offshore oil and gas industry Flex Coil manufactures custom built heat transfer solutions for the offshore oil and gas industry as well as a variety of other industrial heat transfer applications. Flex Coil produces Titanium Coils for air handling units using sea water as a cooling medium, Air Blast Coolers for rigs and ships, as well as dry coolers , air cooled condensers and evaporators for heat rejection applications.

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Flex Coil Titanium Coils

The heart of the custom air handler

The right material choice for the application Seawater is often used as the cooling medium in offshore air handling units. Since the water will circulate through the cooling coil, titanium is the material of choice. The graphic on the right shows why Titanium is most compatible with sea water cooling applications. This graphic can be downloaded from the Flex Coil web page for additional clarity. Flex Coil Titanium coils are selected, designed and manufactured to meet the demands for offshore installations. Often the Titanium coil can be the most expensive component in the custom air handler. The material selection, welding material and fabrication processes all require proper attenetion to obtain the quality results required to meet the duty for this environment. Flex Coil staff are trained and certifed to perform all aspects of Titanium welding, assembly and coil pressure testing.

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Flexcoil

Selecting & rating Flex Coil’s custom designed CoilCalc selection program is used to size coils based upon the air handling manufacturer’s requirements. CoilCalc takes into consideration the coil size based upon the air handling manufacturer’s dimensions and applies the heat transfer parameters to select the appropriate coil to meet the duty. The data used in CoilCalc has been verified through extensive testing in Evapco’s state of the art research and development lab.

Recent test results were reviewed by Statoil engineers confirming the data in CoilCalc aligns with the lab test results for selections made for the air handler requirements pertaining to the Johan Sverdrup platforms.

Flex Coil unequivocally guarantees the thermal performance of all of their coil products and offers a lifetime warranty on all Titanium Coils.

Research & development Flex Coil makes full utilization of its parent Titanium Coils fitted in Custom Air Handlers

company Evapco’s state of the art research and development laboratory. The Evapco lab consists of five test chambers, including an ammonia test chamber, a low temperature test chamber, a steam center, a coil tunnel test and a component testing lab. Customer visits to the Flex Coil Factory and The Evapco Research and Development Lab are highly encouraged

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Quality from start to finish Flex Coil’s attention to quality starts with material control. All materials are sourced from Flex Coil approved vendors. Material certificates are issued with all raw materials. Full positive material inspection (PMI) is carried out using RF technology to confirm the material is as specified and ordered. PMI is again carried out when the product is complete to confirm the correct material was used. Flex Coil welders are fully trained and certified by the FORCE Institute for all weld joint configurations required to manufacture the product. Welds are inspected for proper integrity and colour, both externally and internally using a camera scope.

Coils are then tested at 1.5 times working pressure or at a higher pressure if requested by the customer. Coils are pressurized and submerged in the test tank and observed for a specified period of time to assure there are no leaks. After testing the coils are cleaned, passivated and prepared for packaging. Flex Coil prepares all documentation for material traceability, positive material identification reports, weld colour inspection reports, pressure test certificates, capacity and rating data sheets and final results of any FAT. Flex Coil maintains all certifications and registrations required such as Norsok, DNV, ISO, CE and GOST R.

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Flexcoil

OE 2015 See Flex Coil at the Danish Pavilion Offshore Europe Exhibition Aberdeen Scotland Sept 8-11

OTC 2016 See Flex Coil at the Danish Pavilion Offshore Technology conference Houston, Tx May 2-5

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Not only coils

In addition to titanium and specialty coils, Flex Coil manufactures a complete line of dry coolers and air cooled condensers for offshore and onshore markets. The base design is easily customised for specific applications as was demonstrated on the recent project for the Nyhamna natural gas processing facility in Norway.

The Nyhamna project presented unique challenges. Working with some of the biggest names in the offshore industry, Flex Coil along with our agent MovAir, worked closely with

(above) Load calculation

engineers from Wilhlemsen Engineering, Shell KvĂŚrner and AKER Solutions to fulfil all aspects of the specification.

In addition to general required documentation, Flex Coil provided explosion load calculations for this critical project.

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The Orman Lange gas field and the Nyhamna processing plant will supply 20% of the natural gas to the UK from Norway

Flexcoil

Custom design solutions

Flex Coil has worked with the top names in Shell, AKER Solutions, Kvaerner and Wilhelmsen Engineers visit Flex Coil for full FAT of the Nyhamna project

the offshore industry to meet the stringent specifications for offshore and onshore critical process applications. Conducting a thorough factory acceptance test (FAT) is a crucial part of the process. Over the years we have worked to provide accurate information the first time to expediently fulfil the specification requirement.

The FAT process starts at the project kickoff meeting where a clear path is plotted to allow smooth handling when the final FAT is conducted. For the Nyhamna project all tasks were completed on time including full sound and vibration testing at our facility in Aabybro, Denmark.

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Flexability Offshore-IndustrialCommercial and everything in between, Flex Coil is your GO TO source for custom cooling solutions.

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Flexcoil

Contact Flex Coil at Tel:+45 98 24 49 99 E-mail: flexcoil@flexcoil.dk Visit www.flexcoil.dk to find out more about our products

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Renting power and temperature control equipment eases cost pressures in the oil and gas sector

By John Wilson, Aggreko General Manager for the Nordic Region

A

s record low oil prices show little sign of strengthening, oil producers are increasingly turning to rental options for power generation and temperature control equipment to reduce costs and avoid capital expenditure throughout the full lifecycle of a rig.

Aggreko, a specialist global temporary power and temperature control supplier to the oil and gas industry, reports increasing demand for its rental equipment - from construction and commissioning of rigs, through to production, decommissioning and abandonment where required.

Rental savings

“As profitability falls and capital expenditure budgets are cut, the oil and gas industry is seeking to reduce costs and capital investment by increasingly renting specialist power generation and temperature control equipment. This is often a lower cost, lower risk and more flexible option than buying equipment,” says John Wilson, Aggreko General Manager for the Nordic Region. “In this way clients can avoid the time consuming process involved with getting

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Aggreko capex sign-off, and instead, use operational or maintenance budgets.”

He explained, “If customers choose to buy generators they will specify equipment to meet their project’s current power demand, but requirements often change over time.

When demand falls for example, the generators could be working inefficiently, wasting fuel and creating the possibility of excessive emissions. While if requirements increase, then an additional power source will be required.

Temporary generators offer a flexible solution, as they can be hired on a long or short-term basis and can be scaled up or down with very short lead times, to meet varying power requirements.”

“Working with Aggreko, customers have assurance that the equipment is fully tested and serviced ready for immediate use, rather than relying on their own equipment that will deteriorate over time and prove unfit for purpose if it’s not regularly serviced” Wilson also explains how renting power also reduces the responsibility and risk that lies with the customer in terms of servicing and maintenance. “Using rental generators moves the risk and responsibility of service, maintenance and repair to the rental company and away from the customer. Working with Aggreko, customers have assurance that the equipment is fully tested and serviced ready for immediate use, rather than relying on their own equipment that will deteriorate over time and prove unfit for purpose if it’s not regularly serviced”.

All-inclusive cost

Managers are increasingly seeking budget certainty. By carrying out a site survey Aggreko can provide detailed and accurate project budgets for turn-key solutions, from consultancy through to installation, service and repair and removal. Aggreko reports increased demand for its fixed cost model, which is fully inclusive of all ancillary equipment, spares, servicing and maintenance. As such, customers can forecast and budget accurately, with no hidden costs.

Flexible Solutions for oil and gas lifecycle

Rental power and temperature control solutions are increasingly being used during all phases of the exploration and production life cycle.

Construction

Temporary power is often required for construction projects without adequate mains supply, both for on and offshore applications.

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Aggreko Commissioning

Power can be required during hook-up, whilst loadbanks hired from Aggreko can be used to load test emergency generators and UPS units to ensure full functionality before they go online.

Back-up power

Rental generators can be used to fill power gaps and ensure that full production continues if the regular power supply is disrupted. For facilities without back-up power, temporary generators can be available on stand-by to provide a reliable, cost effective emergency power source.

Secondary power

The power demands of many facilities often meet or even exceed their maximum power supply. If there are additional power or voltage requirements, e.g. for construction or drilling projects, to power cranes, pumps or drill rigs etc, temporary generators may be used.

Planned shutdowns and maintenance

Temporary power provision can be used during periods of planned maintenance to allow operations to run as normal or with minimum interruption.

Accommodation

Providing power and comfort cooling for worker accommodation.

Decommissioning and abandonment

Rental power can be used as part of the deconstruction activity. The power provision can be scaled up or down to meet the specific needs of the project as it progresses, including critical power on NUI and MMI facilities.

Global service

With more than 40 years’ experience of meeting the specialist needs of the oil and gas industry, Aggreko has developed unrivalled expertise and the world’s largest containerised fleet. For more complex project requirements, Aggreko designs and builds bespoke systems at its UK manufacturing facility.

Aggreko’s specialist equipment includes silenced gas and diesel generators, chillers, air conditioners, heaters, dehumidifiers, cooling towers and loadbanks, which are designed and certified to withstand the extreme demands of offshore environments and can all be rapidly deployed anywhere in the world from more than 200 service centres.

Further information please contact: John Wilson, Aggreko Norway, Tevlingveien 15, 1081 Oslo, Norway. Tel: +47 810 00 333.

Email: post@aggreko.no

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© Copyright 2014 | FMC Technologies Inc | All rights reserved

FMC Technologies SA Route des Clérimois - CS10705 89107 Sens Cedex France Tel. : +33 3 86 95 87 00 www.fmctechnologies.com

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Spectrex

RISING TO THE TOXIC GAS CHALLENGE

T

oxic gases can often be very advantageous, having many benefits and useful applications within a variety of industries. As is known, high concentrations can cause much damage to humans and can be life threatening.

Two particular examples of toxic gases commonly present in industrial and agricultural environments are ammonia, which is greatly used, and hydrogen sulfide which, on the contrary, is most often a by-product.

Ammonia (NH3) features in various industries in a wide range of processes, either as a raw product or as a byproduct, including carbon capture and storage in the Oil & Gas industry and fertilizer, among others. Gaseous ammonia is colorless with a characteristic smell, toxic and can cause lung damage and death, as well as fires and subsequent explosions at extremely extraordinary concentrations.

Hydrogen Sulfide (H2S) gas is also toxic and colorless and has a ‘rotten egg’ odor. It is produced by the anaerobic breakdown of organic material, found in many industries such as construction and the petroleum industry, among others. H2S does not cause irritation at low concentrations but can be fatal at high concentrations. In addition to this, when burnt, H2S releases Oil, Gas and Shipping Magazine (www.ogsmag.com)

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Courtesy of Piho Engineering

Toxic Gas! H2S or Ammonia Detect it quickly and safely with Quasar 950/960 Open Path Gas Detector

HEADQUARTERS NJ (USA): +1 (973) 239-8398 HOUSTON OFFICE: +1 (832) 321-5229 EUROPE: +44 (141) 578-0693 spectrex@spectrex.net | www.spectrex.net

Spectrex

sulfur dioxide which is a very dangerous, toxic and strong smelling gas which can cause irritation and death.

One method of detecting toxic gases is by ‘point’ type detectors, where the monitored gas reacts with the electrochemical based sensor in a grid formation. Requiring periodic calibration and maintenance in large plants or potentially high risk areas may be a burden. This is considerably improved in many applications using the method of open path, line of sight gas detection, where much fewer detectors are required for any given area.

Spectrex SafEye is a leading range of open path gas detectors which includes the Quasar 900, a highly accurate and reliable detector for flammable gases, alongside a solution for the detection of toxic gases before their concentration rises to a dangerous level. The SafEye 950/960 open path toxic gas detector detects the following gases:

Open path gas detection

The detector is able to detect ammonia/H2S at distances of up to 263 ft (80 m) using open path, line of sight technology and is immune to false alarms caused by background radiation sources such as sunlight, filament lamps, projectors, heat generators and other type of optical detectors.

Open path gas detection is based on a beam of light being absorbed by the detected gas between a transmitter (source of light) and a receiver (detector) over long distances. The chemical absorbs some of the beam’s energy and the intensity of the beam is therefore reduced. The received beam signal is used to determine whether or not a gas is present. This method can monitor even traces of gases as they “cross” the path between the transmitter and receiver units.

With reliability and safety being the most important issues when measuring and monitoring combustible or toxic gases, detectors must be reliable and fast with minimum false alarms, withstand harsh environments, be low maintenance and setup.

• •

SafEye 950 – ammonia (NH3) SafEye 960 – hydrogen sulfide (H2S)

The receiver contains several sensors according to the specific gases (or chemical families) to be detected with the signal and reference wavelength bands in the 0.2-0.3 microns UV range.

The detector provides a warning signal when no longer able to provide accurate detection (e.g. the path is blocked or obscured).

However, they can function effectively even when 90% of the light is obscured by extreme environmental interference such as fog, rain and smog.

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Mercy Ships: Mamisy’s fight with noma

Mamisy endured several surgeries aboard the Africa Mercy, and after a four month stay, he left the ship with a new nose and lips

M

any people don’t know what noma is – and that really is a credit to the health care systems and nutritional improvements that have been made across the world in recent decades.

Noma is a condition that causes devastation to both individuals and families. It tends to be a problem in countries where malnutrition is a major issue, such as in Madagascar, where the world’s largest civilian floating hospital, the Africa Mercy, has spent 8 months treating patients suffering from this and other debilitating conditions.

Noma is an opportunistic bacterial infection. It is caused by the same bacteria that live in our mouths and noses, but our immune system is usually able to keep them under control. If your immune system is weakened, for instance through malnutrition or a general systemic illness like measles, this is when the bacteria gets the upper hand. In a matter of days you could have a rampant infection spreading from around the teeth or nose into the tissues of the face.

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“Sometimes they’ve had noma when they were three or four and we meet them when they’re 40.

They’ve been living without their nose, without their mouth, without their cheek for all those years.

Hiding away, coming out at night to get food because the stigma is so very severe.”

Mercy Ships A young man named Mamisy is one of the few adolescent noma survivors who visited the Africa Mercy in Madagascar recently.

He survived the disease but it left devastating effects, eating away at his nose and upper lip. Embarrassed by the stares he received, Mamisy stayed home in his garden where no one could see him.

Reconstructing a nose and upper lip is no easy task, but thanks to the incredible crew of expert volunteers, Mercy Ships were able to make this possible. Mamisy endured several surgeries aboard the Africa Mercy, and after a four month stay, he left the ship with a new nose and lips. He also had a new quest: to marry a woman with a sense of humour and have 10 children! He now has hope that this dream will become a reality because of the support of donors and volunteers from around the world.

It is a condition that destroys the soft tissue, meaning that the bone underneath is eventually exposed and you are likely to be left with horrific defects. Sometimes patients just lose their lip, which is bad enough, but in more extreme cases you can be at risk of losing your cheek, your nose, and even your eye. Nomas can create huge holes in your face – it is a truly terrible condition for anyone to live with and only 10% of children suffering from noma survive.

With its floating hospital, Mercy Ships visits some of the poorest countries in the world, where malnutrition has often led to conditions such as noma. Talking about the noma cases he has come across whilst volunteering on the floating hospital, Dr Gary Parker, chief medical officer on the Africa Mercy, said: “Sometimes they’ve had noma when they were three or four and we meet them when they’re 40. They’ve been living without their nose, without their mouth, without their cheek for all those years. Hiding away, coming out at night to get food because the stigma is so very severe.”

Mercy Ships have already started to screen patients in the capital city of Antananarivo for their second field service in Madagascar and look forward to giving hope to more patients like Mamisy.

If you would like to donate to Mercy Ships and help patients like Mamisy please visit: https://www.mercyships.org.uk/ * * * Mercy Ships is an international charity which operates the world’s largest civilian hospital ship, the Africa Mercy, providing free healthcare services to people living in developing countries in Africa, where the services of professional medical staff are most needed. Professionals including surgeons, dentists, nurses, health care trainers, teachers, cooks, seamen, engineers and agriculturalists donate their time and skills to the effort.

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OIL GAS AND SHIPPING MAGAZINE

MEDIA PACK 2015-2016 Our reader numbers globally (for both our printed and electronic magazine version: Argentina 845 Belgium 991 Belize 118 Brazil 3238 China 7236 Denmark 3253 Faroe Islands 14 Finland 1457 France 2322 Germany 2723 Greece 233 India 2564 Italy 934 Japan 453 Kazakstan 392 Netherlands 2789 Norway 9868 Poland 976 Russia 5769 Saudi Arabia 6921 South Africa 3512 Singapore 1986 Spain 1056 Sweden 4121 UAE 7219 Ukraine 645 United Kingdom 9961 USA 14763 Other 9122

TOTAL 105,481 Readers by position: President/CEO/ MD 32% Sales Director 9% Marketing/ BusDev. Director/ Mgr 12% Operations Director/ Mgr 4% Purchasing Director/ Mgr 25% Ship Owner/ Operators 8% Other 10%

About us: Oil, Gas and Shipping Magazine is produced by Worldwide Business Media Limited. It is published monthly and distributed in hardcopy print to over 24,000 readers and over 80,000 in electronic format globally. Our total readership is just over 105,000 and grows daily.

As well being distributed to our readers we also offer customers the opportunity to have the magazine distributed to areas of their choice increasing their chances of response and making sure their advertising material is seen by the right people.

Oil, Gas and Shipping is the media partner and supporter of many exhibitions and conferences worldwide and additional copies of the magazine are printed and distributed at these events.

Founded in 2009, by Simon Ward, the magazine has grown to become a world renowned and respected media journal for the oil, gas and shipping industries.

We hope this media pack offers the information you need and if you require more please contact us.

Exhibitions and confereces we support and partner: Oil Gas and Shipping Magazine is the media partner and supporter of some of the largest exhibitions and conferences worldwide. As well distributing magazines as to our normal readers globally we also distribute additional copies at these events. These include: World Gas Conference, France Offshore Europe, UK ADIPEC, UAE OSEA, Singapore CIPPE, China LNG 17, USA SMM, India SMM, Hamburg ONS, Norway ESGOS, UK Gastech, UK LNG, USA World Shale Oil and Gas Summit, USA OTC, USA OTC, Brazil

“Oil, Gas and Shipping Magazine has a readership of over 105,000 people across the globe every month”

Advertisement prices: Front Page (dedicated to your company) and 12 Page lead/ main editorial £19,995.00 Double Page Advertisement £6000.00 Full Page Advertisement £4895.00 Half Page Advertisement £2450.00 Quarter Page Advertisement Banner Ad on www.ogsmag.com Side Ad on www.ogsmag.com £1450.00 (All prices quoted are in Great British Pounds and payments can be taken through bank transfer or credit card. If you require a quotation in any other currency please contact us)

Specifications: Double - page: 426mm (width) x 303mm (height) - includes of 3mm bleed Full-page: 216mm (width) x 303mm (height) - includes 3mm bleed Half-page: 190mm (width) x 131.5mm (height) Quarter-page: 93mm (width) x 131.5mm (height) 110

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Media information cover, nor anyone apart from the customer and associated advertisers who would read a four page article at the back of one of these monstrosities.

Oil, Gas & Shipping magazine will generally publish a readable 60 to 100 pages, because I want our customers to have their articles and advertisements read.

How do you reflect on the challenges of your early years?

When I started the company with my wife Vanessa we had very little money, no backing from the banks and there was a worldwide recession going on! All we had was an idea to sell to our customers.

Our plan was to build a solid readership based on quality editorial and we believed that advertising would follow. Our readership is now almost 110,000 and is producing great business for our clients and ourselves.

We now feature the biggest players in the industry in our editorial coverage and these customers find that promoting themselves in our magazine is a cost effective alternative to printing their own brochures and distributing them themselves.

How do you plan to develop in the future?

We have no ambition to become the world leader in our sector! We leave that to those with greater resources (and egos) than we have. We do want our magazine to be a voice for its customers, however, rather than preaching to them, and for it to continue to develop as a valuable marketing resource.

We welcome suggestions and editorial contributions because we want to publish a magazine that people want to read and respond to.

What was your motivation for starting We have recently added Martin Ashcroft to your own magazine? our editorial team to help us step up to the next I had been an employee of media companies for a level. Martin has edited business magazines for long time and while their magazines were often good 20 years and his professionalism and insight publications, their relationships with their customers into news stories and features has already left a lot to be desired, failing to deliver what was made an impact on our website and our printed needed to promote their products and services. magazines.

I believe strongly that when customers spend time Any company looking for editorial coverage and money promoting their business, every effort should contact Martin as he has the gift of should be made to help them get their message across writing the most readable, promotable and unto their target audience. When the customer gets a brochure like material you will ever read. positive response, we have a great chance of doing With Martin’s help we have launched a new business with them again in the future! magazine called World Mining, which follows We have significant readership across the globe the same concept as Oil, Gas & Shipping and we offer our clients the opportunity to have the magazine. World Mining has already achieved magazine distributed to companies of their choice. a readership of approximately 93,000 with This helps our customers and ourselves; ensuring its 4th issue. It’s a logical development for us, that the magazine is read by the customer’s target as many of our clients in Oil, Gas & Shipping audience helps us to grow our distribution list. operate in, or sell products and services to the mining industry, too.

Simon Ward founded Worldwide Business Media in 2009 to produce the magazine Oil, Gas & Shipping. Here, he shares his value-for-money vision for serving customers.

What is your major objective for Oil, Gas & Shipping magazine?

Quite simple, really. To publish a magazine with a quality readership and quality content that promotes its customers by covering the subjects and issues that concern them.

What makes Oil, Gas & Shipping magazine different?

My previous employers were committed to maximising the number of adverts in their magazines, to such an extent that issues containing 200 or even 300 pages were being published every month. These were very well designed, pleasing on the eye, and quite profitable, but did little for the benefit of their readers or clients.

I don’t know anybody (apart from the proofreader) who has read a magazine of this size from cover to

Contacts: Worldwide Business Media Ltd. Oil, Gas and Shipping Magazine World Mining Magazine London, EC1V 2NX. United Kingdom Tel: +44 (0)203 5751249 Reg No: 6809417 News and Features Editor: Martin Ashcroft martin@ogsmag.com General Editor: Vanessa Ward vanessa@ogsmag.com Sales: sales@ogsmag.com General: info@ogsmag.com Artwork: artwork@ogsmag.com

www.ogsmag.com If you would like to advertise or feature over several issues of the magazine please contact us for our reduced price deals we can offer for frequent advertisers.

Have electronic magazines replaced hard copy printed magazines?

Definitely not!

An electronic magazine is a great vehicle for sending out an instant promotion, but a printed magazine can be used at exhibitions and faceto-face meetings with greater effect than a tiny image on a tablet, mobile or laptop.

Companies that produce only electronic magazines still charge hard copy print rates for advertising, despite their online magazines being cheaper to produce.

We take a belt-and-braces approach to publishing by producing a printed hard copy and an emailed electronic copy of our magazines, so our customers can benefit from the best of both worlds.

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Be on the front cover and have the lead 1218 page editorial of an edition of your choice

Oil, Gas and Shipping Magazine offers its customers the opportunity to feature as the front cover and the main/lead article of the magazine. This gives companies the opportunity to discuss their operations and developments in more depth and reach our large global audience at a fraction of the cost it would take to publish sole brochures.

All companies who take this option will also be given magazines to distribute on their own behalf. Previous customers have found this particularly useful for exhibitions and conferences and when new products have been developed.

ISS UE

66 w

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Previous companies who have taken this option include Maersk, Statoil, Tyco, Shell Group, Subsea 7, Teekay Corporation, Halliburton, Hyundai Heavy Industries, Tullow Oil, BP and many more.

This complete package includes: Front Page (dedicated to your company) 12-18 Page Lead/ Main Editorial Full Page Advertisement Total price: ÂŁ19,995.00 This package is available for all our editions including our editions distributed at our supporting and partnering exhibitions/conferences.

If you would like to appear as the front cover and lead article please contact us at info@ogsmag.com or editor@ogsmag.com

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“Na v com igatin g p unl lexity o pot cking ent ial�

ISSUE 67 www.ogsmag.com

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(Issue 67: Subsea 7- article snippet below and cover image right) (Left: Previous front covers of Oil, Gas and Shipping Magazine)

A PARTNER IN PIONEERING SUBSEA TECHNOLOGY Subsea 7 builds on its track record in the harshest offshore environments

depth of expertise Investing in technology

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In the offshore energy industry, Subsea 7 is the leading global contractor in seabed-to-surface engineering, construction, inspection, repair and maintenance (IRM) and other services.

In recent years, this subsea market has entered an era of increasing challenge, with reservoirs at greater depths and in more hostile environments. The company has responded by developing a wide and versatile range of market-driven, enabling technologies and by extending its technical expertise.

“Many of the large subsea developments in recent years are either marginal or extremely technically challenging, and probably wouldn’t have been attempted a decade ago,” says Øyvind Mikaelsen, Subsea 7 Senior Vice President, North Sea and Canada.

“Today, Subsea 7 is much more than an installer of subsea infrastructure – we design pipeline systems for clients, develop technologies to support flow assurance in hostile conditions, and invest in world-class high-performance vessels which enable the execution of large, complex projects even in extremely deep waters.”

The catalyst for this accelerated commitment to technology was the successful combination between two complementary predecessor companies, Acergy S.A. and Subsea 7 Inc. in 2011.

“The 2011 merger delivered much more than enhanced volume, capacity and geographical range,” says Steve Wisely, Subsea 7 Executive Vice President Commercial. “It also gave us the widest range of technologies in key sectors in the subsea market, including pipeline riser systems, pipelay techniques, pipeline Bundles, Life-of-Field services and Remotely Operated Vehicles (ROVs).

“As a result, the technologies we use are independent and fit for purpose. We are not committed to using in-house hardware – we meet the challenge of delivering each complex subsea project through selecting the most effective technical solution.”

SUBSEA 7

Subsea 7 operates in every major offshore region worldwide, including the North Sea, the Gulf of Mexico, West Africa, Brazil’s pre-salt fields, West of Shetland, Western Australia and, most recently, the Norwegian Sea. Well established for decades in the Norwegian offshore market, and listed on the Oslo Børs, Subsea 7 is focused on playing a leading role in delivering technology-rich subsea projects in Norwegian waters.

Safety remains the number one priority in all Subsea 7’s operations, and powerful hazard identification, risk assessment and safety management processes all contribute to the highest levels of safety performance.

In Norway, Subsea 7 has had no Lost Time Incidents in over a year during more than 2,000 vessel days and 12 current projects.

Subsea 7 is certainly well placed to meet this requirement. The company has extensive global project experience in every element of subsea construction and engineering, from conceptual design through to installation and commissioning.

“Many of our areas of technological expertise are not what clients expect from an ‘installer’; flow assurance, Finite Element Analysis (FEA), concept analysis, structural riser design, the development of Autonomous Inspection Vehicles and other cutting-edge areas.”

“We have executed a huge number and diversity of subsea projects on a worldwide basis, and we harness all this technological expertise and know-how into safe, reliable delivery,” says Sunde.

As a result of this experience, the company is an acknowledged leader in key sectors of the subsea market, including Subsea Umbilicals, Risers and Flowlines (SURF) and Life-of-Field (LOF).

Subsea 7’s Seven Borealis a world-leading pipelay and subsea construction vessel

The subsea market Subsea installation is already a major growth sector of the oil and gas market, as operators explore technological alternatives to conventional offshore drilling and platform production, most notably for deepwater field developments.

Industry analysts forecast that subsea production will match or exceed conventional platform production in the next 15 years, with the subsea processing market in particular estimated to grow from its current annual value of $500 million to a projected $8 billion by 2020.

As subsea infrastructure grows in size and complexity to meet the demands of higher pressure deepwater installation, an increasing number of operators are demonstrating a preference for the packaged EPIC (Engineering, Procurement, Installation and Commissioning) or EPCI (Engineering, Procurement, Construction and Installation) contract models, which only a number of large top-tier contractors are able to deliver.

“Innovative subsea technologies and large EPIC/EPCI contracts represent the future, but cost and reliability remain the two principal drivers in this industry,” says Thomas Sunde, Subsea 7 Vice President Technology. “Operators are prepared to give increased installation responsibilities to their contractors – but they want confidence in the contractors’ track record.”

SUBSEA 7

Oil, Gas and Shipping Magazine (www.ogsmag.com)

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