Oil, Gas and Shipping Magazine by Oil, Gas and Shipping

ISSUE 91 www.ogsmag.com

Lerus Group:

Dynamic training With the shipping industry in the doldrums, a year of firsts has seen Ukraine-based Lerus Group internationally recognised as one of the worldâ&#x20AC;&#x2122;s premier providers of specialist training for the offshore sector.

The Editor

Happy New OPEC

Editor

The

Martin Ashcroft

his time last year, as I thought about what to say in my Christmas and New Year editorial, I was not brimming with glad tidings of great joy. “With oil expected to flow westwards out of Iran before the end of the year, adding to global oversupply,” I wrote for our January issue, “it looks like 2016 will see more pain before any gain, unless OPEC reverses its strategy of supporting market share, rather than price.” The pain continued throughout 2016, but the gain may now be coming. The flow of Iranian oil hardly deserves an “I-toldyou-so”, and OPEC’s decision to cut production for the first time in eight years doesn’t make me a prophet, but it does give me reasons to be cheerful. A cut of 1.2 million barrels a day will bring OPEC’s output down to 32.5m bpd from January. On its own, this is not a huge reduction, but the announcement was significant for a variety of reasons, and it caused an immediate rally in oil prices. Non-OPEC producers, led by Russia, are expected to agree a complementary output cut of 600,000 bpd at a meeting in Vienna on 10 December, the result of which will probably be known before you read this editorial — such are the time constraints of monthly magazines.

The cuts are designed to stabilize the oil price at $50-a-barrel and push it towards $60, but the deal itself was no foregone conclusion. People close to the talks were reporting shortly before the meeting on 30 November that tensions between Saudi Arabia, Iraq and Iran were casting doubt on the likelihood of agreement. In the end, Saudi Arabia took the brunt of the cuts (486,000 bpd). Iraq agreed to a cut of 210,000 bpd, not as much as it might have been but the first time it has been subject to quotas since the 1990s. Iran, still recovering from international sanctions, has been allowed to increase production slightly, but not as much as it would have liked. So, if OPEC’s internal politics can produce a healthy compromise between Saudi Arabia, Iraq and Iran, the global market may have reason to rejoice. Just as the emergence of shale drilling prevented OPEC from controlling global supply and demand as it used to do, the emergence of oil from Iran may prevent Saudi Arabia from dominating OPEC. The Conference set its next meeting in Vienna for 25 May 2017. In the meantime, we hope everyone does what they have agreed to do, so we can all enjoy a happy New Year. Oil, Gas and Shipping Magazine www.ogsmag.com

Contents Page: 3

• The Editor: Happy New OPEC

• Lerus Group: Dynamic training

• Jotun welcomes new ISO standard for hull and propeller performance

• Alphastrut opens office in Norway

• Puma Energy acquires BP Terminal in Northern Ireland

• Jawar al Khaleej Shipping orders three Damen vessels

• d’Amico launches three new product tankers

• SKF and GE Oil & Gas to develop magnetic bearing applications

• Dril-Quip acquires TIW Corporation

31 33

• Analysis: North Sea Projects

• Analysis: Increase in renewables changes global energy map

• Expander Systems: The CADEX 5 global IT platform

• Findlay Irvine: Friction testing for helidecks: Changing legislation

• Executive interview: Peter Keller: Executive vice president, TOTE

• BP: North Sea giants

• Boskalis: Offshore integration

• Nor-Shipping aims to turn industry problems into profit

• Analysis: The Silo Factor

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cover story:

lerus group

dynamic training Page 6

ADVERTISERS Page: 2 Lerus Group 14 Wintershall 16 Ebara International 18 Aggreko 19 Boskalis 20 IT Vizion/ Kippertool 22 OMS 23 Spectrex Inc. 24 TerraMar Networks 26 Technip 28 MIAG Fahrzeugbau GmbH 29 Shepherd Offshore 30 Telenor satellite broadcasting 32 Norhard 39 Expander System 42 Kenz Cranes 43 IMI Sensors 50 Weston Compliance Services 52 Orkney Harbours 55 SAIFEE SHIP 62 University of Maryland 63 Spirit IT 64 Findlay Irvine

Contents

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lerus group With the shipping industry in the doldrums, a year of firsts has seen Ukraine-based Lerus Group internationally recognised as one of the world’s premier providers of specialist training for the offshore sector. Ruslan Gromovenko tells Martin Ashcroft about new initiatives and official approvals from DNV GL and The Nautical Institute Oil, Gas and Shipping Magazine www.ogsmag.com

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ormer marine engineer Ruslan 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, specialising in training for ship handling, dynamic positioning, offshore crane operators, helicopter landing officers and helideck assistants, and human resources management. Expertly-trained and experienced instructors at the Lerus Training Centre now provide masters and crew with a realistic offshore training experience to equip them with the appropriate skills in a safe and controlled environment. â&#x20AC;&#x201A;â&#x20AC;&#x201A;Oil, Gas and Shipping Magazine www.ogsmag.com

lerus group dynamic training “The idea to open a local training centre came to us in 2011,” says 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.” 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.

Dynamic positioning

“At Kongsberg’s Simulator User Conference 2016 in Athens at the end of October, DNV GL SeaSkill officially presented Ruslan Gromovenko with an accreditation certificate for the Lerus Test Centre – the first time a training centre outside Norway has been recognised in this way”

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 computer-controlled 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 divers working underneath on inspection or repair; the vessel must be able to stay immediately above the divers.” 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. 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 mid1980s. For prospective DPOs, the Lerus Training Centre runs a fiveday basic induction course, which is a mixture of theoretical sessions and practical exercises on Kongsberg DP simulators. Assessment is by tests in which a successful candidate must achieve 70% correct answers, and then go on to complete 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. Oil, Gas and Shipping Magazine www.ogsmag.com

Sea-time experience

The practical experience can be hard to come by, given the current state of the offshore industry. With over half of the world’s total fleet laid up, opportunities are scarce and many students who started the DPO training scheme have not been able to continue. “This has been a great challenge in the industry for a long time,” says Gromovenko, “to get a job on a ship to earn your sea-time. Oil majors don’t want students. They want to employ experienced DPOs.” Customers have limited budgets for non-mandatory training, so training centres must look for new ways to attract students. Lerus is unique in having a chartered DP-equipped ROV support vessel, Denar 2, which allows it to offer on-board DP training for students undergoing their familiarisation period. Taking the student out of the simulator and onto the water satisfies an industry need and offers a new revenue stream to Lerus – and the initiative has now been officially endorsed by the Nautical Institute. “The Nautical Institute recognises the importance of effective on-board training for prospective DPOs, and knowing that Denar 2 was operating in support of this experience we wanted to determine how the vessel was being used and the effectiveness of the on-board supervision,” said Captain John Lloyd, chief operating officer at The Nautical Institute. “In

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lerus group dynamic training agreement with Lerus, The Nautical Institute arranged for a specialist technical audit to be conducted on board to verify the value of the operations in meeting the development needs of the DPO. “This independent audit satisfied the requirements of the NI scheme and we were pleased to grant recognition of the vessel for Phase B of the mandatory training required by our scheme. We continue to support innovative solutions for training and certification where they are proven to be effective and look forward to growing our relationships with the global network of training providers.”

Further recognition

“The industry-recognised route to becoming a qualified DPO is the successful completion of training courses accredited by the London-based Nautical Institute”

Offshore oil & gas 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. For those who train the DP operators, international recognition is a priceless asset. Accreditations by major regulatory and standards organisations such as the Nautical Institute and DNV GL are consequently worth their weight in gold. At Kongsberg’s Simulator User Conference 2016 in Athens at the end of October, DNV GL SeaSkill officially presented Ruslan Gromovenko with an accreditation certificate for the Lerus Test Centre – the first time a training centre outside Norway has been recognised in this way. “Lerus signed an agreement with DNV GL in July 2016 for the certification of its Lerus Test Centre,” said Captain Aksel David Nordholm, manager simulator certification, DNV GL SeaSkill. “The certification process is a procedure whereby DNV GL audits and verifies the quality management system and the simulator system, approves the assessors and conducts a final implementation audit. Lerus is the first test centre to be approved outside Norway, with highly qualified assessors and equipment at its disposition.” The DNVGL-ST-0032 for Test Centre for Certification of Personnel standard applies to any organisation issuing certificates of competence to individuals. The certificate is valid for five years, and for Lerus, it’s a way of proving to the industry that the certificates of competence it issues to dynamic positioning operators are based on impartial performance assessments and aligned with industry standards. “It’s a major achievement for Lerus,” said Gromovenko, “and it opens up a whole new world of possibilities for us.” The certificate gives Lerus a credibility advantage over other geographies, and puts it on a par with Norwegian competitors, over which it enjoys a price advantage, as overhead costs are significantly cheaper in Ukraine than in Norway.

A year of firsts

2016 turned out to be a year of firsts for Lerus, as earlier in the summer it had become the first centre in Ukraine to receive OPITO approval for its Offshore Helicopter Landing Officer (HLO) training. OPITO (Offshore Petroleum Industry Training Organisation) is a British standards organisation which grew out of The Petroleum Industry Training Board (PITB), established in 1977. The approval process was a bit of an ordeal, Gromovenko admits, but it was great preparation for the DNV GL Oil, Gas and Shipping Magazine www.ogsmag.com

certification process. “We learned a lot from our experience with OPITO. The amount of work involved was tremendous. There were about 12 different books we had to follow. “They sent our papers back all the time saying ‘that’s wrong’, ‘that’s wrong’, but we didn’t always understand how we were supposed to put it right. Different people have different backgrounds and the way we do things is a little bit different. When you try to gain international approval, you have to do things the way they want you to do them, but it’s not always easy to understand what they are looking for. It took us a year and a half to work all that out. Everything has to be just so, from the number of emergency doors to the markings on the helideck itself.” While the Nautical Institute was the sole sponsor of DP training for many years, DNV GL entered the arena a few years ago, sponsoring the DNV GL DPO training course, which allows prospective DP operators to qualify in a shorter period of time, without compromising on quality. DNV GL DPO is an alternative to the traditional NI scheme. Both have high standards and requirements and both certificates (NI & DNV) are internationally accepted. The main attraction of the DNV course is the opportunity to receive an international DPO certificate for those who experienced administrative difficulties with the NI scheme for one reason or another. Official certification by DNV GL puts Lerus in a

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lerus group dynamic training perfect position to exploit the opportunities this new scheme creates.

Asian opportunities

Another first for Lerus in 2016 was taking over a training centre in Singapore, its first venture outside Ukraine. “We already had an office in Singapore,” says Gromovenko, “but in January 2016 we took over management of the former EMAS Offshore Training Academy and Simulation Centre (EMAS Academy).” He has since added a high voltage simulator there and is planning to run a DP maintenance course for engineers next year. If a widely anticipated single international standard can be agreed for maintenance training for engineers, he says, it could be crucial to the survival of many training centres. “Once you have an international standard with an approval certificate, you cannot accept any previous qualifications, because you cannot check them. So logically, once the industry recognises the need for a certification standard, oil majors will need DP engineers to attend an IT maintenance course. This could return all DP engineers back to training centres. Perhaps we can provide a refresher course for those who have already qualified, but need to acquire the new international certificate. We are ready to go ahead with that.” Lerus also plans to open another training centre in Jakarta,

“A successful candidate must achieve 70% correct answers, and then go on to complete a minimum of 60 days seagoing DP familiarisation” Indonesia before the end of the year. “We see opportunities for growth in the developing countries of the Asia-Pacific region: Indonesia, Malaysia, Vietnam, Thailand,” says Gromovenko. “Their onshore and offshore oil & gas reserves are major sources of potential growth for these countries, but to develop new fields and projects they require a qualified labour force. We are ready to meet this demand and offer our experience, investments and technologies to train the necessary workforce.” There is more long term potential in Asia, says Gromovenko. The number of seafarers in Asia is ten times bigger than Europe in terms of figures, but the Asian market has suffered more from the downturn. “I get about 25 emails a day in Ukraine from seafarers looking for work, whereas in Singapore it’s 75 to a hundred.” The offshore sector has had a tough 12 months and many operators have cut back on recruitment and non-mandatory training. Despite all that, Lerus has managed to find new opportunities and has achieved international recognition into the bargain. The market will pick up again, so that sounds like dynamic positioning to me.

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JOTUN WELCOMES NEW ISO STANDARD FOR HULL AND PROPELLER PERFORMANCE

he International Organization for Standardization (ISO) has published the longawaited ISO 19030, a new standard to measure changes in ship-specific hull and propeller performance. According to Jotun, which has played a vital part in the standard’s development, the move has the potential to reduce the industry’s green house gas emissions by 10 per cent, while saving operators up to $30 billion in

development director, Hull Performance Solutions, managing the project for its entire duration on behalf of the ISO. “This is a day of celebration for all stakeholders in, and connected to, the global shipping industry,” says Oftedahl. “Poor hull and propeller performance accounts for around ten per cent of the world fleet’s energy costs and greenhouse gas emissions. With this standard we can finally

“The standard provides a transparency that has been lacking in the industry and will be a central driver for enhancing environmental performance and vessel efficiency” annual energy costs. ISO 19030 has been more than three years in the making, with over 50 expert stakeholders from the industry working together to develop a uniform framework for measuring the efficacy of solutions improving hull and propeller performance. Jotun, a global leader in marine antifouling coatings, has been central to the process, with Geir Axel Oftedahl, Jotun business

quantify how solutions, such as advanced antifouling coatings, can tackle that issue – providing accountability and ROI for shipowners, while detailing the enormous potential for GHG and cost reductions. “The standard provides a transparency that has been lacking in the industry and will be a central driver for enhancing environmental performance and vessel efficiency. I’d like to congratulate all the key

players involved in this process, especially Svend Søyland, formerly of Bellona and now with Nordic Energy Research, who has convened the ISO working group, Standards Norway, including Knut Aune, who has served as the secretariat for ISO 19030, and, of course, ISO itself. In developing the standard, the ISO working group met across more than three years and spent over 12,000 hours refining the methodology for publication. Jotun’s HPS, combining advanced SeaQuantum X200 silyl methacrylate antifouling and a full suite of sensors attached to vessel hulls, launched to the market in 2011. It has since proved its ability to deliver long-term efficiency and performance gains. In March the firm released data for the first ever five year dry-docking of a vessel treated with the solution Gearbulk’s Penguin Arrow. This documented that HPS, by successfully limiting the growth of organisms on the hull, enabled a fuel saving of $1.5 million, cutting CO2 emissions by some 12,055 tonnes, across the 60-month period.

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News

ALPHASTRUT OPENS OFFICE IN NORWAY

lphastrut, a supplier of aluminium support systems and handrails to the offshore oil & gas and marine sectors, has further expanded its operations by opening an office in Norway. It is a third overseas office for the Scotland-headquartered company, following its expansion into South Korea and Singapore, as it looks to build on the success that has seen its products specified for use on major North Sea platform developments for BP, Nexen and Aker BP ASA.

“We had lots of positive feedback about the Alphastrut range at the recent ONS 2016 exhibition in Stavanger,” said David Lawson, managing director of Alphastrut, “adding to the existing strong interest from major businesses around the world.” Alphastrut makes a versatile aluminium support system, which was

overhead service support grids, bulkhead supports, stairs and ramps. Alphastrut’s aluminium handrail system is 100% NORSOK compliant and features a continuous unobstructed top rail, so there is no need to break hand contact even on corners or stairs. It is designed for quick installation and being

“We had lots of positive feedback about the Alphastrut range at the recent ONS 2016 exhibition in Stavanger” specifically designed as a weight-saving solution for topside modules on offshore oil & gas platforms. The fully-bolted system can be used for load-bearing raised access floors with integrated sub-floor cable containment,

fully-bolted, can be fitted without any welding or hot works. A simple clamping system allows it to integrate with previously installed handrails, making it a quick and simple way to replace corroded mild steel rails.

PUMA ENERGY ACQUIRES BP TERMINAL IN NORTHERN IRELAND

uma Energy, the globally integrated midstream and downstream energy company, has signed a purchase agreement with BP to buy its bulk storage fuel terminal in Belfast, Northern Ireland. This acquisition builds on the purchase of the 1.4 million m3 capacity Milford Haven Terminal in 2015, further supporting Puma Energy’s growth within the European Market, and helping to ensure high quality, reliable fuels supply to Northern Ireland.

The Belfast terminal provides storage for gasoline, distillates and aviation fuels, with road gantry loading facilities and a jetty berth capable of handling MR class vessels. The site comprises 20 bulk fuel storage tanks with a working capacity of ca. 143,000 m3. The 53 acre former refinery site is located between George Best Belfast City Airport and Belfast Harbour. The refinery was opened in 1964 and converted to a terminal in 1982. Oil, Gas and Shipping Magazine www.ogsmag.com

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CREATING NEW HORIZONS IN OFFSHORE ENERGY

Boskalis offers a wide variety of marine services and contracting for the international energy sector including the development, construction, transport, installation, subsea inspection, repair & maintenance (IRM), decommissioning of offshore and onshore facilities and marine cable installation (through Boskalis, Dockwise, Fairmount and VBMS). The combined capabilities are unmatched in the industry and they are the foundation to helping our clients realize exceptional projects. Our offshore energy solutions cover: ■ Transport ■ Installation ■ Subsea IRM ■ Decommissioning ■ Offshore Support Services Boskalis Offshore Energy Division P.O. Box 43, 3350 AA Papendrecht, The Netherlands T +31 78 69 69 000 E offshore.energy@boskalis.com

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JAWAR AL KHALEEJ SHIPPING ORDERS THREE DAMEN VESSELS

t this year’s Seatrade Maritime Middle East Exhibition in Dubai, Jawar Al Khaleej Shipping LLC (JAK), signed a contract with Damen Shipyards Group for the supply of three vessels; one fast crew supplier (FCS) 5009 and two ASD tugs 3213. JAK is a leading provider of specialist services to the offshore oil and gas sector in the Gulf, delivering logistical support including oil terminal

is to be built at Damen Shipyards Antalya in Turkey and to be named the Jawar Abu Dhabi. She is due for delivery in early 2017. The flagship of Damen’s fast crew supplier range, the FCS 5009 has a top speed of 25 knots and can carry up to 80 passengers. The twin ASD tugs 3213 are to be named the Jawar Faw and Jawar Um Qasr and are being constructed at Damen Shipyards Song Cam in Vietnam. The ASD

support services, towage and salvage, together with other integrated offshore solutions. Its current fleet comprises anchor handling tugs, support vessels, jack up barges, emergency oil spill response vessel, crew boats, heavy lift crane vessel and flat top barges. These include existing Damen tugs the Jawar Basra, an ASD 3213 delivered in 2015, and the Jawar Dubai, a Stan Tug 2909 purchased in 2009. The 53-metre FCS 5009

3213 is 32 metres in length and is dedicated to handle VLCC tankers at offshore terminals. Both ASD 3213s are under construction and ready to be delivered after commissioning.

“JAK is a leading provider of specialist services to the offshore oil and gas sector in the Gulf ”

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JAK operates the fleet of tugs and support vessels that support the Al Basra (ABOT) and Khor Al Amaya ( KAAOT ) oil terminals that, between them, handle more than 90% of Iraq’s

crude oil exports. It is JAK’s responsibility to keep the terminals operable in all weather conditions, and high winds occur frequently in the area south east of the Faw Peninsular. Only powerful tugs like the ASD 3213 can ensure an uninterrupted service manoeuvring the VLCCs that arrive at the terminals to take on crude oil. Both facilities are planning to expand their capabilities in the years ahead as Iraq increases its oil output. “The acquisition of these new vessels reaffirms Jawar Al Khaleej Shipping LLC’s fullest commitment, confidence and determination to continue supporting the offshore oil and gas industry in the forthcoming years,” said Eng. Baydaq Al Jazaeri, Chairman of Jawar Al Khaleej. “Damen produces some of the best vessels in the world for these kinds of operations. They are technically sophisticated and the quality is very good. The reliability is also excellent, with the servicing and maintenance ensuring that everything goes smoothly.”

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News

d’AMICO LAUNCHES THREE NEW PRODUCT TANKERS

aritime transport company d’Amico International Shipping, a specialist in the product tanker market, has launched three new ecoships at the Vietnamese shipyard Hyundai Vinashin Shipyard Co. Ltd – one handysize and two medium range vessels. The handysize vessel Cielo

di Salerno is 184 metres long and 27.4 metres wide, allowing the transportation of 39,000 dwt, whereas the two medium range ships, High Wind and High Challenge, are built to guarantee a greater load capacity of 50,000 dwt, being 32.20 metres wide for the same length. One of the tankers has already been chartered to an international

oil major for three years. The others will be placed on the spot market. “We have added three new assets of great value to our fleet, which is among the most innovative and updated on the international panorama,” stated Paolo d’Amico, chairman of d’Amico International Shipping. “We are successfully working in partnership with a shipyard of the highest calibre, Hyundai Vinashin Shipyard, which guarantees us ecological, safe and exceptionally performing ships to offer our clients.” The construction of the three product tankers at the shipyard in Vietnam, owned by Korean Group Hyundai Mipo Dockyard, was supervised by the Ship Management Department of the d’Amico Group through its subsidiary Ishima.

NOR-SHIPPING AIMS TO TURN INDUSTRY PROBLEMS INTO PROFIT

or-Shipping 2017 invites the next generation to find solutions to the current generation’s challenges through its unique Problem to Profit initiative. The global maritime event, taking place in Oslo and Lillestrøm, Norway, from 30 May to 2 June 2017, will work with key industry players and networks to identify unresolved industry ‘pain points’, before using social media to engage young people in a process that could set a new course for the world of shipping. “Shipping is a driver for world development and prosperity, but the industry

faces mounting challenges and needs to develop a more sustainable path forwards,” explains Nor-Shipping director Birgit Liodden. ”This new concept will engage a broad spectrum of young people – from those already working in the industry to business entrepreneurs, students and those simply interested in sustainability – in a search for ideas and solutions that established shipping actors may not have considered. “We believe this is an exciting opportunity for the industry to reach out beyond its traditional borders, mobilising the potential of talented young individuals it

wouldn’t otherwise be able to connect with. We’ll be working hard to realise its full potential.” The best submissions will be shared through NorShipping’s online channels, with standout contributors invited to the event’s Ocean Opportunity Talks in Oslo.

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News

SKF AND GE OIL & GAS TO DEVELOP MAGNETIC BEARING APPLICATIONS

KF and GE Oil & Gas have signed a nonexclusive, licence-based collaboration agreement, aimed at further developing the use of active magnetic bearing technologies within the oil and gas sector. GE Oil & Gas will make use of SKF’s leading magnetic bearing technologies from front-end engineering design to installation, testing and service to customers. The partnership also provides the basis for future collaboration, to widen the scope of applications of active magnetic bearings into other GE Oil & Gas

turbomachinery, such as steam and gas turbines. “SKF’s active magnetic bearing technology has already enabled a number of breakthroughs within the oil and gas sector,” said Victoria van Camp, president, business and product development at SKF. “Through this agreement, we are strengthening our technology leadership and enhancing our relationship with GE Oil & Gas. We are also implementing a new business model, which will ensure that we widen the scope of applications for these technologies.”

Luca Maria Rossi, general manager for turbomachinery solutions product management, GE Oil & Gas, commented: “Active magnetic bearings bring relevant benefits in terms of reliability, maintenance needs and performance in our compressor technology. Through this strategic agreement, we will be able to provide our customers more optimized solutions with GE

“Active magnetic bearings bring benefits to compressor technology” as a unique point of contact for the entire machinery and auxiliaries. SKF will bring the know-how and core expertise, while GE Oil & Gas brings the scale, process and service capabilities in order to better serve oil and gas operators.”

DRIL-QUIP ACQUIRES TIW CORPORATION

ril-Quip has completed its previously announced acquisition of TIW Corporation, a 100-year old manufacturer of consumable downhole products for the global oil and gas market. Founded in 1917 as Texas Iron Works, TIW provides liner hanger systems and related equipment and services worldwide and is based in Houston, Texas. “We are excited to complete the acquisition of TIW Corporation, the first in Dril-Quip’s history, and

welcome TIW employees to the Dril-Quip team,” said Blake DeBerry, president and chief executive officer of Dril-Quip. “In addition to expanding our offshore and onshore market opportunities, this transaction allows us to significantly expand our product offerings to our customers. “TIW has a long history of success as a family-owned company and we intend to preserve that legacy by continuing to reliably serve our customers with our

combined teams around the world,” DeBerry continued. TIW’s products and services are a good fit with Dril-Quip. In addition to its offshore market, TIW’s onshore presence in the Middle East and South America will add more market opportunities. TIW’s products include kelly valves, safety valves and a comprehensive line of packers. TIW also provides rental tools and services for the installation of its products and other wellbore construction activities.

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analysis

Johan Sverdrup living quarters Photo Statoil ASA

NORTH SEA PROJECTS The UK will account for the majority of crude and natural gas projects in the North Sea, with 22 operations expected to commence in the region by 2025, according to GlobalData report

total of 32 crude and natural gas projects are expected to commence operations in the North Sea region by 2025, with the UK claiming the highest number at 22, followed by Norway and Denmark with nine and one respectively, according to research and consulting firm GlobalData. This estimate is down slightly from GlobalData’s previous estimate of 36 new projects. The change in planned project count is mainly a result of the delayed start of production at several projects. The company’s report states that Statoil ASA will lead the North Sea in terms of operatorship of planned projects, with the highest number of planned assets in the region with four crude projects. Maersk OIie og Gas AS and EnQuest PLC jointly occupy second place, with three planned projects each. In terms of gas production volumes, key planned projects in the North Sea are expected to contribute 869 thousand barrels of oil per day (mbd) to global crude production and 996.8 million cubic feet per day (mmcfd) to global gas

Norway will lead the North Sea in Capex during the forecast period, with close to $13.2 billion being spent on the Johan Sverdrup project

production by 2025. Among companies, Statoil ASA is expected to lead planned oil production. In the North Sea region, key planned projects are expected to come online with a total capital expenditure (capex) of US$78.2 billion, $43.1 billion of which is expected to be spent between 2016 and 2025. Norway will lead the North Sea with expected capex of US$23.8 billion during the forecast period, of which close to $13.2 billion will be spent on the Johan Sverdrup project. Statoil ASA will have the highest capex spending among all the companies in the North Sea region and is expected to spend a total of $11.3 billion on the key planned projects over the next 10 years. Major undeveloped discoveries in the North Sea region include Bagpuss in the Central North Sea basin, Hejre in the Central Graben, and Clark in the Southern North Sea basin. Information based on GlobalData’s report: H2 2016 Production and Capital Expenditure Outlook for Key Planned Upstream Projects in the North Sea. Oil, Gas and Shipping Magazine www.ogsmag.com

analysis

THE SILO FACTOR An ABB white paper raises concerns that organisational silos in process safety management increase the risk of major accidentss

BB’s global engineering and consultancy group has launched a new white paper which warns of an increased risk of major accident hazards due to significant levels of silo working in the process industries. The ‘silo factor’ was the key theme identified in a new study based on 500 recommendations from 16 in-depth process safety risk assessments carried out by ABB in recent years. According to the white paper, process safety performance within the high hazard industry is being threatened by the silo factor – an inability within process safety management circles to collaborate and be consistent across all departments in an organization. ABB has identified five common areas of weakness within process safety management (PSM), all in some way a result of a silo approach: 1. Inadequate testing of safeguards; 2. Inadequate process hazard analysis (PHA) records; 3. Inadequate safeguards in place when compared to the risk reduction claimed as part of process safety risk assessments; 4. Poor understanding of the worst case major accident hazard scenarios on site, and 5. Lack of clarity about the basis of safe operation and a lack of alignment between emergency response plans and the PHA.

“We have identified a worrying pattern across the process industries that without urgent attention could be lowering our defences against major accidents, said Paul Alton, who leads the process safety team at ABB’s consulting business. “Having an agreed and consistent approach to process safety management is critical for safe performance. This can only be achieved through integrated and collaborative thinking and processes that encourage a constant focus on major accident hazards. “We want to encourage industry debate that will help to raise awareness of the issue within the high hazard sector, with a view to agreeing an industry standard approach to process safety management.” The silo mentality is often considered to be a consequence of independent departments protecting their identity, but it is not necessarily a deliberate state of mind. When responsibility for process safety crosses departments, there is always the risk that some people performing safety critical tasks may not fully understand the significance of their actions and the hazards they are meant to be guarding against. The full white paper can be accessed at: http://new.abb.com/uk/media/white-papers Oil, Gas and Shipping Magazine www.ogsmag.com

INCREASE IN RENEWABLES CHANGES GLOBAL ENERGY MAP The energy landscape is changing as countries achieve a more diversified energy mix along with growth in community ownership

report launched at the 23rd World Energy Congress in October reveals that the unexpectedly high growth in the renewable energies market, in terms of investment, new capacity and high growth rates in developing countries, has contributed to falling prices and the increased decoupling of economic growth and greenhouse gas (GHG) emissions. Speaking at the launch of the report, Hans-Wilhelm Schiffer, Executive Chair, World Energy Resources, said: “Our report finds that the diversification of technologies and resources, now applied in the energy sector, creates many opportunities, but the enlarged complexity also leads to increased challenges. With the existing level of volatility, relying on solid facts and data as basis for strategic decision making by the relevant stakeholders, such as governments, international organisations and companies, is becoming even more important than in the past.”

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The total global renewable energy based power capacity has doubled within the last ten years, from 1,037 GW in 2006 to 1,985 GW by the end of the year 2015. This has been caused by a record deployment in particular of wind and solar capacity for power generation. Wind energy capacity increased globally from 74 GW in 2006 to 432 GW in 2015 (420 GW onshore and 12 GW offshore), solar energy within the same time horizon from 6 GW to 227 GW. Global hydropower capacity grew by 35% since 2006, from 893 GW to 1,209 GW in 2015, of which 154 GW is pumped storage.” Hydropower is the leading renewable source for electricity generation globally, supplying 71% of all renewable electricity in 2015, whereas wind power contributed 15% of total renewable electricity production, solar energy just 5% with the remaining 9% coming from biomass, geothermal and others combined. The total renewable based power generation was

analysis

5,559 TWh in 2015, which is 23% of total worldwide power generation of 24,098 TWh. “We have seen a dramatic increase of unconventional resources and no less dramatic technology improvement in the renewables space over the past decade,” said Christoph Frei, Secretary General, World Energy Council. “Oil will still be needed for transportation, providing over 60% of energy needs but overall oil demand will flatten out. The golden age of gas will continue, with expected output growth between 25% and 70% by 2060. “Renewables such as solar, wind and hydropower now account for about 30% of the total installed power generating capacity and 23% of total global electricity production and will continue to grow. However, more progress is urgently needed to scale up action on energy efficiency, electric storage and carbon capture and storage. With stagnating growth potential in the oil sector and with coal likely to be of little importance by 2060, there will be a shift in the discussion from stranded assets, predominantly enterprise owned, to stranded resources in oil and coal, predominantly state owned. This has the potential to cause significant stress to the current global economic and geopolitical equilibrium and will need to be part of a broadened carbon and climate dialogue.” Among other key findings, the report revealed that as of December 2015, 65 nuclear reactors were under construction with a total capacity of 64 GW. 40 of which are located in four countries: China, India and Russia and Korea. Global uranium production increased by 40% between 2004 and 2013, due to increased production by Kazakhstan, the world’s leading producer.

Quick facts • In 2015, total renewable based power generation was 5,559 TWh, which is 23% of total worldwide power generation. • Wind energy capacity increased globally from 74 GW in 2006 to 432 GW in 2015. • Solar energy within the same time frame increased from 6 GW to 227 GW. • Hydropower is the leading renewable source for electricity generation globally, supplying 71% of all renewable electricity in 2015. • As of December 2015, 65 nuclear reactors were under construction with a total capacity of 64 GW. Forty of the units under construction are located in four countries: China, India and Russia and Korea. • Global uranium production increased by 40% between 2004 and 2013, due to increased production by Kazakhstan, the world’s leading producer. • https://www.worldenergy.org Oil, Gas and Shipping Magazine www.ogsmag.com

Expander Systems The global leader in pivot engineering CADEX 5 is the heart of the Expander Global Group Proprietary Global IT-Platform. It can create customized pivot solutions that eliminate both costly downtime and repairs – in minutes. All machines experience wear with use, especially the pivot points. Over time, the bores of the lug ears become oval, affecting stability and safety. Once the wear begins to appear, it rapidly increases due to the accelerating nature of the wear process. Repairs are expensive, time-consuming and are necessary multiple times over the life of a machine when using the traditional repair method of welding and line boring. The Expander Assemblies install directly into worn mounting lugs without welding and line boring, even if holes are worn slightly oval. Over the course of 30 years, Expander Global has developed a catalog of more than 60,000 assemblies for a wide range of equipment. As an expert in pivot technology, Expander has developed advanced engineering software that automates the design process, providing results in minutes. Customers can print a pivot dimension sheet from the Expander®System website and use it in the field to record measurements. Next, they input the information into the online version, and the Expander®System engineering department reviews it immediately to ensure accuracy. If there are any questions, an engineer on staff will contact the customer for clarification. As with all Expander®System assemblies, custom assemblies are backed by a 10,000-hour/10-year function warranty. “Chances are when a customer visits our online catalog (www.expandersystem.com) or calls us directly with a pin part number, machine make, model or position, we already have what they need in stock,” President Roger Svensson said. “However, there is no standard in the world when it comes to

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Expander Systems

Expander®System has an extensive catalog of more than 60,000 Expander Assemblies to fit a multitude of machines. Expander also makes custom pins to fit specific needs.

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Expander Systems

The Expander®System CADEX 5 System allows Expander to custom design and manufacture Expander Assemblies with fast turnaround times. “We can usually have the Expander Assembly to the customer within a few days,” said President Roger Svensson. “If it’s an emergency, and a machine is down, we will expedite the order.”

“Expander has developed advanced engineering software that automates the design process, providing results in minutes” pivot pins. We receive requests for new designs all the time. Fortunately, our proprietary CADEX 5 engineering system allows us to customize a design and manufacture a new Expander® assembly with quick turnaround.” Expander®System assemblies provide a permanent, cost-effective solution. That’s why more and more companies, from various markets including: construction, mining, oil and gas, and offshore, process industry and forestry have turned to the Expander®System to replace conventional straight pins. CADEX 5 technology continues to move Expander® Global to the forefront of pivot technology. “The new custom Expander®System Assembly is designed, manufactured and shipped within a few days,” said Svensson. “If it’s an emergency, and a machine is down, we can expedite an order. We encourage anyone who wants a permanent solution for pivot wear to contact us.”

Oil, Gas and Shipping Magazine www.ogsmag.com

Using its propriety CADEX 5 Global IT Platform, Expander®System manufactures custom-designed pin bodies and components within minutes of receiving a customer’s specifications. New Expander Assemblies are usually received within a few days.

No More Line Boring

The Expander®System installs directly into worn pivots without the need for costly welding and line boring – even if holes are worn oval. Each assembly is designed to fit your specific machine make, model and position. The assembly pin-body is tapered at both ends, and when the fasteners are tightened, the tension washers force the expansion sleeves into the worn lug holes. The sleeves conform with the wear pattern to permanently eliminate the wear problem, so you get a perfect fit every time. Stop endlessly replacing pins, and opt for a long-term solution that will expand your bottom line – The Expander®System.

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Friction Testing for Helidecks:

Changing legislation

www.findlayirvine.com â&#x20AC;&#x201A;â&#x20AC;&#x201A;Oil, Gas and Shipping Magazine www.ogsmag.com

Findlay Irvine As mandatory surface friction testing for helidecks is becoming more likely it is imperative that helideck operators and maintenance teams have the correct equipment in order to comply with the impending regulations. Recent research has identified set criteria for suitable friction testers to achieve in order to meet the new legislation, CAP 437. The minimum average surface friction value of 0.65 should be achieved across the area inside the touchdown/ positioning marking, outside the touchdown/ positioning marking and on the paint markings themselves. This should help to ensure that suitable levels of surface friction are available consistently at all helidecks and allow operators to monitor levels in order to take effective action when levels begin to drop and improve safety. Findlay Irvine has developed a continuous surface friction measuring device, Helideck micro GripTester, which meets all the criteria required by the UK CAA. The simple to use software installed on the micro GripTester’s touch screen display guides the user through the friction test procedure with ease and stores the data straight onto the unit’s built in hard drive or directly onto a USB drive to allow for easy transfer of data. Helideck micro GripTester can be folded away easily and weighing in at only 23kg can easily be transported or stored making it a simple, efficient one-person operation. With the ability to consistently measure surface friction regardless of slope or incline the micro GripTester will give a true surface friction measurement regardless of the location, from airports and oilrigs to hospital helidecks. This unique machine is the only friction tester that is fully compliant with CAP 437 and is now being adopted as the go to machine for testing helidecks all over the world. The ease of use and ability to generate reports quickly are helping to increase the popularity of Findlay Irvine’s Helideck micro GripTester. For more information please contact: Rob Sims Sales Director +44 (0)1968 671200 sales@findlayirvine.com

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EXECUTIVE INTERVIEW

PETER KELLER: EXECUTIVE VICE PRESIDENT, TOTE TOTE companies carry cargo from anywhere in North America to Puerto Rico and Alaska. Peter Keller joined in 2012 and leads the conversion of the company’s fleet to liquefied natural gas (LNG). Tell us about your experience in the international maritime industry.

Before I joined TOTE in February of 2012 I had extensive experience in port and terminal development, liner industry activities, labour relations, intermodal operations and supply chain economics and strategies. I have also been involved in merger and acquisition strategies and tactics, public private partnership development and have been an advisor to many senior industry executives. I also worked in domestic and Jones Act trades in my earlier years in shipping. I was one of the founders of the Navieras de Puerto Rico in the 1970s so was no stranger to that side of the business. In the end, shipping and serving customers is no different in any trade.

What are TOTE’s key values and objectives?

Integrity and customer service are keys to our business and should be key to any business. We have clients who depend on us and we serve with pleasure.

What do your customers expect from the TOTE brand? First class, innovative service and an organization that is

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proactive at all times. We have proven shipping professionals in all aspects of our business. Whether it is sales, pricing, operations, shipboard personnel, we all understand customer needs and always try to serve those needs with integrity while providing real value. Trade and transportation are cornerstones to our economies, whether domestic or international, and we all have an important part to play.

Where do safety and environmental standards fit in?

Safety is job number one. We all have families and loved ones and it is our responsibility to make sure everyone goes home at night safely. We also have social responsibilities which we take very seriously, which is why we were the first to commit significant resources to the development of LNG as an important, environmentally friendly, maritime fuel.

What can you tell us about the conversion of TOTE’s fleet to LNG?

Any time you are in the lead, there are many unique and often unexpected challenges. We were able to meet these challenges

executive interview

because of the unwavering commitment of our management and owners. Without their commitment, none of these breakthroughs could have happened. We were also fortunate in choosing partners such as NASSCO and MAN, among many others, who shared our vision for the future of maritime shipping.

What are your most popular services?

We have a strong presence in the refrigerated markets and have introduced a lot of new modern assets. We innovated the ISO compliant 53’ x 102’’ containers for our supply chain

exciting industry that has changed and continues to change constantly. Being part of that change has been memorable every day.

Your favourite ship:

Actually two. The SL-7 that Mr McLean introduced at Sea-Land. The first and still most innovative company for our industry. These were the fastest cargo ships ever built. At 33 knots, these ships were also beautiful to see and stevedore. They’re still active as part of the US Government fleet.

“In the end, shipping and serving customers is no different in any trade” clients. We also built specialised container assets to safely and efficiently handle products from cars and trucks to live cattle. Our new ships also have a unique and innovative way of handling liquid bulk products such as fructose for the Puerto Rico soda trade.

Do you expect to explore new markets over the next five years?

Like every other strong company we are always looking at opportunities that benefit our clients as well as our owners.

Your memorable shipping experience:

Over the past 50 years it is hard to single out one. It is an

The other is of course the Marlins, the Isla Bella and Perla de Caribe. These are the world’s first dual fuel LNG containerships and herald yet another new era in international shipping. Just as the SL-7s brought speed and unprecedented service levels to the international market, so the Marlins bring a new era of social responsibility and environmental consciousness. 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

North Sea Giants As BP celebrates achievements in its own backyard, major projects around the world are approaching completion, too.

â&#x20AC;&#x201A;â&#x20AC;&#x201A;Oil, Gas and Shipping Magazine www.ogsmag.com

Oil, Gas and Shipping Magazine www.ogsmag.com

P has renewed its commitment to the North Sea by announcing the creation of more than 500 jobs. It comes as the oil giant completed a “once in a lifetime” double win for the region, with the installation of all the major modules for its Clair Ridge platform and the arrival of the Glen Lyon FPSO to the west of Shetland, unlocking a combined one billion barrels of oil over the next 40 years. The 534 jobs are linked to the hook-up and commissioning of the two projects and the work is expected to last 18 months. Oil, Gas and Shipping Magazine www.ogsmag.com

BP BP continues to invest in this region. In July this year, it doubled its stake in the North Sea’s Culzean development and over the last five years it has invested $10 billion in the North Sea. Last year, it invested a $1 billion into its aging ETAP field, securing its future through 2030. BP’s North Sea president, Mark Thomas said: “This is our home. This is where BP has matured and we feel this is our backyard. It’s not very often in an oil and gas basin that in the course of five days you have two major projects basically sailing to the field; it should never be taken for granted. “The north-east is a mature basin but we are looking towards the future, particularly in the west of Shetland, and we see that as a growth opportunity. When was the last time you ever heard someone talk about the North Sea as a growth opportunity? And that’s what we’re looking at. West of Shetland is a place we want to invest and be in for the next three or four decades. In this environment people say, ‘Really can you look that far ahead?’ And in this environment, absolutely we can. “Glen Lyon is a project that was years and years in the making and all of a sudden it’s there,” said Thomas. “It will be online towards the end of this year or early in 2017. To have that happen in itself, is magnificent. And then over course of five days, to have five big modules together weighing 30,000 tonnes sail-out into the Shetlands and to be installed into the jacket flawlessly – I mean that’s a once in a lifetime opportunity. For most project engineers that is the one opportunity in their whole career to see that, and here we’ve seen that twice in the matter of one week. There’s not many other oil and gas basins in the world today that can say they’ve seen that type of activity in such a short time.”

Clair Ridge

Clair Ridge, BP’s £4.5 billion investment, is now in the second phase of development on the Clair field, which lies 75km to the west of the Shetland Islands. 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. The project primarily involves the installation of two bridge-

“The Clair Ridge development will have the capability to produce an estimated 640 million barrels of oil over a 40-year period” Oil, Gas and Shipping Magazine www.ogsmag.com

Picture courtesy of Morguefile

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“Culzean is expected to produce enough gas to meet 5 per cent of UK demand when it reaches peak production in 2020/21”

linked 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 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. 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 also will 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.

Culzean

By doubling its share, BP now holds a 32 per cent stake in the Maersk-operated Culzean field. The development, which lies about 145 miles east of Aberdeen, is one of the largest gas fields discovered in the North Sea in more than a decade. The gas condensate field has resources estimated at 250-300 million barrels, according to BP. Production is due to start in 2019 and continue into the 2030s, with plateau production of 60,000-90,000 barrels per day. It is expected to produce enough gas to meet 5% of total UK demand when it reaches peak production in 2020-21. BP’s increased share in Culzean again demonstrates its commitment to the future of North Sea opportunities.

Global projects

Other significant upstream projects include, Kizomba Satellites 2, In Salah Southern Fields, Greater Plutonio 3, Western Flank A, Thunder Horse Water Injection, In Amenas Oil, Gas and Shipping Magazine www.ogsmag.com

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Extensive and highly skilled supply chain serving a wide range of marine activities

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. 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. In Amenas is a wet-gas field, operated in partnership between Algerian state oil company Sonatrach, BP 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 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. In Salah Gas, also 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

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has been on-stream since July 2004. 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 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. 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 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. It is estimated to hold about 25% of known natural gas on the North Slope. Processing facilities include separation,

“The Thunder Horse field is located around 120 miles southeast of New Orleans in over 6,000 feet of water”

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 sixmile flowline. This first phase of the Khazzan field development plan in Oman 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. With BP’s continued investment in its North Sea activities and global projects the company is meeting the challenges in today’s difficult market head-on and has its eye firmly on a prosperous future.

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boskalis: Offshore integration

The name Boskalis has been synonymous with dredging for over a hundred years. Jaap Meij, Director of Offshore Integrated Projects, tells Martin Ashcroft about the company’s expansion into the offshore energy sector, illustrated by some prestigious projects for BP.

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Boskalis

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ounded in 1910 in Sliedrecht, the home of the Dutch dredging industry, Royal Boskalis Westminster N.V. (to give the company its full title) has over 100 years’ experience in hydraulic engineering, coastal protection and land reclamation, not only in The Netherlands but around the world. You may remember the Suez Canal expansion, opened by Egyptian President al-Sisi on 6 August 2015. The largest part of the project, the construction of a shipping lane of around 35 kilometres parallel to the existing canal, was executed by a consortium comprising Boskalis and three partners. In recent years, however, Boskalis has grown from a dredging and infrastructure specialist into a global maritime services provider, now offering a wide variety of marine services and contracting for the offshore energy sector, including dry and wet transport of drilling rigs, offshore transport and installation (T&I) of monopiles, jackets and topsides, offshore services to floating structures such as FPUs, SPARs and floating production, storage and offloading units (FPSOs), and subsea inspection, repair and maintenance.

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Boskalis These capabilities have been added through a series of key acquisitions, including (among others) Smit Internationale (in 2010), followed by heavy marine transport specialist Dockwise (in 2013), Fairmount Marine (in 2014), a world-class provider of long-distance ocean towage services, and recently VBMS, a leading player in the European market for offshore cable installation. Started as a shipping company for heavy ocean transports, Dockwise gradually developed into a service provider for the offshore industry, particularly in offshore transport and installation, undertaking a number of projects for BP. Dockwise has now been integrated into the Offshore Energy Division of Boskalis, along with Jaap Meij. “I had been with Dockwise since 2006,” he says, “and I was responsible for all offshore related T&I activities.” One of these activities involved the transportation of the offshore topsides structures for BP’s multi-billion dollar Clair Ridge development from South Korea to the North Sea. “We completed these transports earlier this year,” says Meij. “We had six of our premier vessels involved in the execution, making two voyages last year and four this year.” As transportation is a critical part of the project, planning the preparations has to begin well in advance. “Because of the size and the weight of the modules and structures that need to be transported, there’s a limited number of vessels with the relevant track record available that can do this work,” says Meij, “so it’s important to allocate the vessels early. Sometimes this can be two to three years ahead of execution but we recently completed a project where the contract was in place almost six years ahead of execution.

“Because of the size and weight of the structures that need to be transported, there’s a limited number of vessels that can do this work” Oil, Gas and Shipping Magazine www.ogsmag.com

“The Dockwise Vanguard is the largest semi-submersible heavy transport vessel in the world”

“There’s a lot of requirements, a lot of specifications and a lot of risk that needs to be managed,” says Meij. “This is not a straightforward heavy cargo transport, it’s an offshore project. If one of our transports were to fail, it would have an enormous effect on the overall project master schedule. If something goes wrong with the fabrication of a piece of the structure, you might face a delay of a few days or a few weeks, but if we lose or damage our critical cargo this will have an immediate effect on the overall project development and can easily become catastrophic. In offshore transport and installation you are 100 per cent on the critical path.” It takes between 60 and 70 days of sailing to transport a load like this from Korea to the North Sea, Meij tells me, usually around the Cape of Good Hope. “Sometimes we go through the Suez Canal but you have height restrictions there. Because we also sail through the Gulf of Aden we also have to take

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adequate security measures.” But while BP Clair is the largest project undertaken for BP to date, the next one being planned will be bigger still – Mad Dog Phase 2, in the Gulf of Mexico.

Mad Dog

The Mad Dog offshore field was discovered in 1998 and started production in 2005. Owned by BP (60.5%), BHP Billiton (23.9%) and Chevron (15.6%), the Phase 2 development is planned for the southern portion of the Mad Dog field, in 4,500 feet of water some 190 miles south of New Orleans. The production platform will be designed by KBR in collaboration with its Swedish subsidiary GVA and the plan is to integrate the topside infrastructure with the semi hull structure.

Dockwide Vanguard

The Dockwise Vanguard is Boskalis’ latest state-of-the-art semi-

Boskalis a bit like an aircraft carrier,” says Meij, “but it is designed specifically to accommodate an FPSO type cargo. “Generally we can only execute two to three projects per year with a vessel like the Dockwise Vanguard,” he continues, “taking account of the time involved to sail from the yard to the actual location, on top of the preparation time to outfit the vessel to accommodate the cargo, and when we have delivered the cargo we have to clean the vessel and reinstate it to its original specification.”

Offshore Integration

submersible heavy transport vessel. “The new vessel Vanguard has not been used yet for existing BP projects but it will be used for the Mad Dog South Project,” says Meij. “It’s the largest semi-submersible heavy transport vessel in the world. It has a carrying capacity in excess of 100,000 metric tons. The special feature about this vessel is its huge deck surface and its ability to take on very large floating loads. In the case of Mad Dog South, where BP is considering an integrated unit, you could transport a single unit like that on the Dockwise Vanguard. If you were using traditional heavy transportation vessels you would have to divide the unit into smaller sections to be able to transport it.” The design of the vessel is unique in that it has no bow and no stern, so it can transport structures that are longer than the vessel itself. The deck strength in the middle also makes it uniquely able to carry smaller, but heavier cargoes. “It looks

Continuing the theme of diversification, the next step in the Boskalis business strategy is to look for ways to integrate more of its newly acquired services in its customers’ major projects. “As Director of Offshore Integrated Projects, that’s where my role comes in,” says Meij. “If we can integrate products and services for our clients, on top of the initial transport project, we can become more like a one-stop shop, reducing interfaces and reducing risk.” The Offshore Energy Division of Boskalis has a wide variety of products and services. For instance, the company operates around 1,000 floating assets ranging from dredging vessels, barges, tugs, floating sheerleg cranes, heavy transportation vessels, diving support vessels, cable laying and fallpipe vessels. “These are all in individual business units within Boskalis but we are trying to capture projects where a number of those activities are involved, so we can offer an integrated solution to our clients,” explains Meij. “Our main challenge is to make our clients aware that we can do more than the original split in scope that they send out to the market,” he continues. “The offshore sector tends to take a traditional approach towards contracting. When the oil price is high it’s natural to want the best players in each particular discipline. Nowadays, when there are price pressures, you have to be very cost efficient, which means bringing these activities together. Instead of managing five individual subcontracts you want to manage one subcontract and have that subcontractor manage a range of activities. The market is now adapting to that format.” In terms of risk, it’s also a significant benefit for the client to have one financially strong contractor rather than have to assess risks for a number of smaller ones. “There is a lot of competition in today’s market but that is one of our strong differentiators,” says Meij. “Contracting with a company without the same financial security always involves a risk, regardless of whether the price was good or not. Next to price they look at track record and financial stability. A company like BP can have confidence doing business with Boskalis.” Having been a dedicated marine service provider for years, the plan is for the Offshore Energy Division is to grow and excel in contracting and become the contractor of choice to its clients. “We have recently announced that we are investing in a new crane vessel,” says Meij, “so with the acquisitions we have made and our investment in critical assets we have now reached a point where we can offer those services.” One positive consequence of the collapse in the price of oil is that many old oil and gas rigs are now being taken out of service and decommissioned, and this has become another strand of the Boskalis business development plan. “It’s like a reverse installation,” says Meij. “With the combination of our knowledge, experience and our assets we have a unique proposition in this field, too.” Oil, Gas and Shipping Magazine www.ogsmag.com

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