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

ISSUE 92 www.ogsmag.com

Statoil: Shaping sustainable energy

the editor

Oseberg Field Centre - Photo Øyvind Hagen - Statoil

Safety in mind

Editor

The

Martin Ashcroft

ne of the greatest changes I have seen during my career in business magazines is in the corporate attitude towards safety. When I first interviewed executives from mining or oil and gas, they would always say that safety was their prime concern, but I wasn’t always sure they meant it. Now I know they do. I think there used to be a feeling that these industries were inherently dangerous and that if you wanted to work in them, you knew the risks and you were well rewarded, so you got on with it. Society doesn’t buy that anymore, however, and nor should it. It’s becoming more evident as time goes by that safety and efficiency go hand in hand, however. Far from being expensive, safety is the key to an efficient operation. Apart from the human cost, accidents disrupt the flow of work. Halting an operation to deal with a safety issue affects productivity, so by definition, safe processes are efficient processes. One issue that has not kept pace with this evolution in physical safety is mental health, however, and this is something that recruitment specialist Petroplan is campaigning on at the

moment. Dr Steven Smith of the Robert Gordon University in Aberdeen addresses the issue in an insightful and stimulating essay in this magazine, in which he draws attention to the obvious but often overlooked facts of life for those who work offshore. The pressures on offshore workers are immense, but human beings can only operate under pressure for relatively short periods of time, before their ability to concentrate begins to diminish. In industry as a whole, stress-related illness is now the most common reason for people to be absent from work, but admitting to stress is often seen as a sign of weakness. In oil and gas, you know what you’re getting into, and you’re expected to deal with it. This is reminiscent of the old attitude towards safety, and it’s not a constructive way to deal with an issue that affects the people executives regularly describe as “our most valuable asset.” As Steve Smith says, “No organisation in this industry would accept a situation where 50 per cent of valves or pipes were unable to work at full capacity because they hadn’t been properly maintained.” We must be more mindful of that. Oil, Gas and Shipping Magazine www.ogsmag.com

Contents Page: 3

• The Editor: Safety in mind

• Statoil: Shaping sustainable energy

• Grand Bahama Shipyard Limited: Growth opportunities

• Multipurpose freight rates to improve by end 2017

• IP Week 2017 will assess an eventful year

• Nor-Shipping welcomes China and Norway

• Hempel introduces new coating for offshore assets

• IP assets of Controlled Variable Buoyancy Systems up for sale

• Global Marine Systems extends Atlantic Cable Maintenance Agreement

• Fagioli and RINA ensure smooth installation of Hebron platform topsides

• OPEC output falls in December

• INEOS opens new UK headquarters

• Record contract for Mech-Tool Engineering

• Trelleborg expands Center of Excellence

• OSM takes full management for Forland Shipping

• Prime Meridian granted license

46 50

• Comment: Dr Steven Smith Mental Health in oil & gas

53 54

• Analysis: GlobalData Understanding OPEC’s oil output deal

• Expander Systems: CADEX 5 global IT platform

• Lerus Group: Dynamic Training

• Analysis: S&P Global Platts Oil & gas outlook 2017

• Executive Interview: Øssur Hilduberg, Head of the Danish Maritime Accident Investigation Board (DMAIB)

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ADVERTISERS Page: 2 Technip 14 Grand Bahama Shipyard Limited 15 Tristar Shipping 24 Wintershall 26 Ebara International 28 Aggreko 29 Boskalis 30 IT Vizion/ Kippertool 32 OMS 33 Spectrex Inc. 34 TerraMar Networks 36 Lerus Group 38 MIAG Fahrzeugbau GmbH 39 Shepherd Offshore 40 Telenor satellite broadcasting 42 Norhard 44 IMI Sensors 51 Kenz Cranes 61 Expander System 70 University of Maryland 71 Spirit IT 72 Findlay Irvine

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statoil

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Oil, Gas and Shipping Magazine 2017

Page 53 understanding opec’s oil output deal

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statoil shaping sustainable energy

Statoil is the leading oil and gas operator on the Norwegian continental shelf with its flagship Johan Sverdrup field due to come on stream in 2019. It is also expanding its international activities, however, in other offshore and deepwater geographies, with a portfolio ranging from development projects to mature fields.

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he Norwegian State Oil Company, Statoil, was formed in 1972 and two years later the Statfjord field was discovered in the North Sea. In 1979, the Statfjord field commenced production, and in 1981 Statoil was the first Norwegian company to be given operator responsibility for a field, at Gullfaks in the North Sea.

Statoil merged with Norsk Hydro’s oil and gas division on 1 October 2007. The new company was given the temporary name of StatoilHydro, and the new company reached a size and strength for considerable international expansion. The company changed its name back to Statoil on 1 November 2009. Norsk Hydro’s oil history stretches back to the late 1960s, when the company was a license holder in the giant Ekofisk discovery in the North Sea in 1969. Statoil has been one of the most important players in the Norwegian oil industry, and has contributed strongly to make Norway into a modern industrial nation. Today, Norway is one

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of the world’s most productive petroleum provinces and a test lab for technology development and Statoil is one of the world’s largest suppliers of oil and gas. The company is headquartered in Stavanger, Norway and has approximately 23,000 employees worldwide. It operates on the belief that competitive returns for its shareholders are best achieved through a values-based performance culture, stringent ethical requirements and a code of conduct which promotes personal integrity. Statoil aims to meet the demand for energy, which is necessary for further economic and social development, while showing consideration for the environment

statoil shaping sustainable energy

Aasta Hansteen

Oseberg Field Centre

Aasta Hansteen

and making an active effort to fight global climate change. Safe and efficient operations are its first priority. Statoil has won great renown for its technical safety monitoring system and safe behaviour programme. It focuses on contributing to sustainable development via its core activities in the countries in which it operates. Statoil is the leading operator on the Norwegian continental shelf, and a company in an expansive phase internationally. As the fields on the Norwegian continental shelf become increasingly mature, Statoil is actively seeking international opportunities to apply its expertise in offshore and deep water development projects. Partner-operated fields represent a significant proportion of Statoil’s oil and gas portfolio. The portfolio ranges from development projects to mature fields. The complexity of these requires detailed knowledge of the areas involved. Besides being a leading operator of innovative floating production platforms and ships, Statoil has an enviable record in producing hydrocarbons via subsea (seabed) installations. Its goal is to maximize the production on the Norwegian continental shelf and lay the ground for further growth. To achieve this, further technology development is being pursued along the lines of compact and environment-friendly solutions, solutions that improve recovery from the reservoirs, technology that permits long tie-backs to land and equipment for ultradeep water. Once the equipment has been developed and installed, efficient intervention systems are essential for carrying out modifications and repairs – both in the well and on the seabed. Dedicated high-capacity vessels for seabed intervention, modification and repair (IMR), light well intervention (LWI), and through-tubing rotary drilling (TTRD) have been developed to achieve fast response times. These in turn enable high levels of productivity and reservoir recovery. A number of larger field developments are currently in the project development pipeline. They include Aasta Hansteen, Johan Sverdrup, the Snøhvit future development and Mariner (UK), all of which are expected to contribute significantly to Statoil’s total production in the future. The Aasta Hansteen gas discovery (previously Luva) in the Norwegian Sea was made in 1997 and is situated at a depth of 1300 metres in the Vøring area, 300 kilometres from land. Together with Haklang and Snefrid Sør, the recoverable resources are estimated at 47 billion standard cubic metres (Sm3) of gas. Recovering the resources on Aasta Hansteen Oil, Gas and Shipping Magazine www.ogsmag.com

“The Aasta Hansteen gas discovery in the Norwegian Sea was made in 1997 and is situated at a depth of 1300 metres in the Vøring area, 300 kilometres from land”

Aasta Hansteen

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will be demanding as the discovery is located far from land and outside the established infrastructure. The water depth is significant and the weather conditions are challenging. Statoil is also increasing its investment on the UK continental shelf through the development of the Mariner field, an ambitious 30-year project which represents one of the largest capital expenditure commitments on the UK continental shelf for over a decade – a gross investment of more than GBP 4.5 billion. Discovered in 1981 on the East Shetland Platform, approximately 150 kilometres east of the Shetland Islands, the Mariner field is a huge, if daunting, prospect for oil and gas producers. Mariner is a heavy oil field characterised by dense, viscous oil.

Johan Sverdrup

One of Statoil’s most ambitious and challenging projects is Johan Sverdrup, a gigantic field currently under long term development and with massive potential for both Statoil and for Norway. The Johan Sverdrup discovery in 2011 turned out to be one of the biggest Norwegian finds ever. After the major discoveries of the 1970s and 1980s petered out, many people thought that the days of the giant finds were over. But the Statoil team’s dedication and relentless search for new fields paid off. It made the Aldous Major North and Aldous Major South finds in 2011 in the North Sea 140 km west of

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Johan Sverdrup first hole- Statoil/Oceaneering

statoil shaping sustainable energy

Johan Sverdrup signing

“With peak production representing nearly 25% of all Norwegian oil production and an expected life span of 50 years, the Johan Sverdrup oil field will secure jobs and value creation through major investments, production revenues and taxes for many years after it comes on stream in 2019”

Stavanger. Later these were unified with the Avaldsnes find made by Lundin in 2010 and the Geitungen find in 2012. The Norwegian Petroleum Directorate estimates that the field contains between 200 and 400 million Sm3 recoverable oil, as well as 7.8 billion Sm3 gas, making it one of the largest on the Norwegian continental shelf. With peak production representing nearly 25% of all Norwegian oil production and an expected life span of 50 years, the Johan Sverdrup oil field will secure jobs and value creation through major investments, production revenues and taxes for many years after it comes on stream in 2019. Statoil has now awarded contracts to Aibel and Aker Solutions for hook-up and commissioning assistance for the Johan Sverdrup field centre, phase 1. The contracts have a total value of slightly less than NOK 1.3 billion, excluding options. The scope of work for the riser platform accounts for an estimated 70% of the total scope committed in both contracts. “These contacts are the last construction contracts in Phase 1 of the Johan Sverdrup development,” says Margareth Øvrum, Statoil’s executive vice president for Technology, Projects and Drilling. “The competent supplier team now in place will help us develop a project for several generations on the Norwegian continental shelf. Norwegian suppliers have demonstrated competiveness, and have together landed more than 70% of all awarded Johan Sverdrup contracts.” Aibel has been awarded the contract for hook-up and commissioning of the drilling platform on the Johan Sverdrup field centre in 2018. The contract includes an option for hookup and commissioning of the processing and accommodation platforms in 2019. Aker Solutions has been awarded the contract for hook-up and commissioning of the riser platform on the field centre in 2018. This contract also includes an option for hook-up and commissioning of the processing and accommodation platforms in 2019. Preparations start immediately. Kicking off in the summer of 2018 the hook-up work offshore represents the final and crucial phase prior to first oil on the Johan Sverdrup field. In this phase the jackets, platforms, wells, subsea equipment, export pipelines and power from shore will be hooked up to form a fully functioning field centre that will come on stream in late 2019. Two mobile accommodation facilities, in addition to the Johan Sverdrup accommodation platform combined, have the capacity to accommodate more than 1,200 people offshore. “The scope of work is extensive and in the peak period an estimated 650 positions will be needed offshore, rotating on three shifts, i.e. almost 2,000 offshore workers. The entire Johan Sverdrup development puts the industry to the test again due to the size of the project. The Johan Sverdrup commissioning will be the most complex and extensive commissioning project offshore that Statoil has ever been responsible for over its 40 years as an operator on the Norwegian Continental Shelf. It will be demanding, but we have solved complex tasks before with our suppliers,” says Kjetel Digre, project director for Johan Sverdrup.

Subsea

Snøhvit is the first offshore development in the Barents Sea. This project involves bringing natural gas to land for Oil, Gas and Shipping Magazine www.ogsmag.com

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Eships operates to the highest industry safety standards and has ongoing business relationships with most Oil Majors Eships are Owners and Operators of products/chemical tankers ranging from 8000 to 13000 DWT and LPG carrier of 6500 CBM

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Bakken, North Dakota

liquefaction and export from the first plant of its kind in Europe and the world’s northernmost liquefied natural gas facility. Snøhvit is the first major development on the Norwegian continental shelf with no surface installations, no fixed or floating units. Instead, the subsea production facilities stand on the seabed, in water depths of 250-345 metres, and are designed to be over-trawlable, so that neither they nor fishing equipment will suffer any damage from coming into contact. A total of 20 wells are due to produce gas from the Snøhvit, Askeladd and Albatross fields. This output is transported to land through a 143-kilometre pipeline. A total of nine wells have been drilled on Snøhvit, eight for production and one for reinjecting carbon dioxide. Six of the producers and the carbon dioxide injector were drilled in 2004/2005. In addition, three production wells were drilled on Albatross in 2005-06. This field also forms part of the Snøhvit development. The Snøhvit and Albatross wells came on stream in 2007, while the Askeladd development will come on stream after 2020. Statoil is taking subsea longer, deeper and colder. Through innovative thinking and collaboration with partners and suppliers, Statoil aims to develop the elements required for a subsea factory by 2020. A subsea factory is a process plant on the seabed making it possible to utilize remote-controlled transport of hydrocarbons at any offshore facility. The future resources are further from land, at greater depths and in colder

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Subsea factory

statoil shaping sustainable energy and harsher environments. The subsea factory will be vital to realise business opportunities for Statoil in these areas and help to realise its production goal of 2.5 million barrels of oil equivalent (boe) per day by 2020. Statoil believes that compact separation facilities on the seabed will be a key to success in Arctic areas or deepwater areas like the Gulf of Mexico and Brazil. Its offshore portfolio is well suited to the application of subsea production and processing. Statoil operates 500 subsea wells and has a 25-year track record of subsea technology development, implementation and operation. It has already taken the first technological steps, making the world’s first complete subsea solution for separation and injection of water and sand from the Tordis wellstream, and has developed the first subsea facility for injection of raw seawater on Tyrihans. Projects such as the oil-dominated multi-phase transport on Tyrihans and Snøhvit’s gas condensate transport are at the forefront in the development of multi-phase transport over long distances. The next step is to realise subsea gas compression in 2015.

Shale

“Statoil’s shale business began in the US through active partnerships in the Marcellus play along the eastern seaboard, the Eagle Ford play in south Texas, and its own operatorship of tight oil activities in North Dakota and Montana in the Bakken play”

Shale resources have begun to transform the global energy outlook. Due to reserve additions from shales, global natural gas reserves are estimated by the International Energy Agency to last around 250 years at present consumption levels. According to the IEA, unconventional gas (shale gas, tight gas and coal bed methane) now makes up 60% of marketed production in the US and production estimates of tight oil in the US alone could exceed 1.4 million barrels per day by 2020. For Statoil, shale and tight rock reservoirs are a key growth area that increases its long term reserve base. Statoil’s heritage as a pioneering company and its technology competence, gives a strong foundation for its strategic ambitions in shale. The development of shale and tight rock resources enables both local and global economic development, creating jobs and wealth at the local and national level, whilst also meeting growing world energy needs. Statoil’s shale and tight gas and oil business began in the US through active partnerships in the Marcellus play along the eastern seaboard, the Eagle Ford play in south Texas, and its own operatorship of tight oil activities in North Dakota and Montana in the Bakken play. Shale and tight rock opportunities are in the early stages of development in many other parts of the world. In a bid to lead the sustainable market, Statoil is leading the way in harnessing new energy sources, including carbon capture and storage, and wind energy. Carbon capture and storage (CCS) is an important contribution toward reducing CO2 emissions, and Statoil is actively pursuing CCS in many areas. It has stored CO2 on Sleipner Vest since 1996, and continues to be a champion for the development of CCS. New renewable energy is one of the most exciting growth areas in the energy market and Statoil is focusing on establishing a position in markets where the company has natural advantages, particularly within offshore renewable energy.

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grand bahama shipyard limited: growth opportunities Already well versed in the overhaul and refurbishment of cruise liners, Grand Bahama Shipyard is investing in strategic growth opportunities in the tanker and LNG trade

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y any standards, Grand Bahama is a great location. For a shipyard operation, it doesn’t get any better! The northernmost island in the Bahamas, Grand Bahama contains the Freeport Free Zone, in which Grand Bahama Shipyard Limited is situated. The yard, just 93 nm from the Port of Miami in Florida USA, is strategically positioned to support the cruise industry, as well as being accessible to the major shipping routes from Europe to the Americas, into the Gulf of Mexico and throughout The Caribbean. The expansion of the Panama Canal now opens the way for extra traffic from the Pacific and Asia. Oil, Gas and Shipping Magazine www.ogsmag.com

grand bahama shipyard limited growth opportunities

“Our location is paramount. If you’re coming from Europe or North Africa you must sail past here to get to the Gulf ”

“Our location is paramount,” says Graham Couser, VP, Sales and Marketing for Grand Bahama Shipyard Limited. “If you’re coming from Europe or North Africa you must sail past here at some point to enter or exit the Gulf.” Grand Bahama also has an active port supporting oil, gas and container shipping. It’s home to the Freeport Container Port, a Statoil oil storage and trans-shipment terminal, along with the Buckeye Bahamas Hub, the largest petroleum products terminal in the Caribbean. Focusing on the shipyard, Grand Bahama Shipyard Limited (GBSL) has three dry docks, a pier and two deep water wharfs with adjacent lay down areas. The yard exists to repair vessels, anything from a tug to the largest cruise vessels in the world, as well as the full range of tankers and container vessels. The yard can accommodate vessels up to 82,500 tonnes and 310 metres in length. It has an excellent, year-round climate and a sheltered deep water harbour with an average channel depth of 16 metres, leading to a basin at the yard with an average of 20 metre depth which includes four 24 metre deep trenches to enable underwater thruster removal. The business relies on selling dry dock space, and with Miami being the biggest cruise hub in the world, GBSL enjoys a fair share of that trade, but it’s a seasonal business. “We average between 20 and 25 cruise ship dockings per year,” says Couser, “from September through May. So we have dock space to offer from May through to September, and other openings in between. Our intention now is to extend our reach into the container and tanker markets because we see a lot of potential business there.” Dock space is a finite resource, so growth potential must be realised by optimising dock occupancy, adding more services or turning ships around more quickly. Investment in new facilities is therefore a continuous process, to improve the yard’s capabilities and competitiveness. LNG, in particular, is one of these growth opportunities. “The US is importing less crude and starting to export more gas,” observes Couser. “This is likely to increase, so we want to prepared for that sort of work. After extensive market research, and recent developments on the use of LNG as a fuel, we are developing the facility to accommodate this kind of trade. We invested in an LNG clean room and were guided by GTT and majors such as Teekay on what tooling is needed to maintain LNG systems and vessels.” The yard engaged French engineering company GTT, (Gaztransport & Technigaz) the global authority on the storage and transportation of LNG, and also sought the help of carriers, including Teekay, one of the world’s largest independent owners and operators of LNG carriers, before procuring and installing state of the art air driers and other specialized machinery for the overhaul and maintenance of containment systems, pumps and valves. “We also obtained GTT approval,” adds Couser, “so we are on their list of approved yards for carrying out repairs on their systems and technologies.” Another recent investment, inspired by market feedback, was to build a facility for slop oil reception. GBSL is currently in the process of building a tank farm to be completed by the third quarter of 2017. “We have spent money on lathes and other specialist machines to expedite the docking process,” says Oil, Gas and Shipping Magazine www.ogsmag.com

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grand bahama shipyard limited growth opportunities

“We are on GTT’s list of approved yards for carrying out repairs on their systems and technologies”

Couser. “Our business depends on being efficient in getting those vessels back into service on or ahead of schedule. We have to arm ourselves with the correct tooling equipment, and ensure our labour is properly trained and qualified. An apprentice program is in place and the yard is dedicated to ongoing training for our labour force. Thereby expanding its service offering, GBSL has recently undertaken scrubber projects, and ballast water treatment projects. “Our main focus is always to get ships turned out on time,” Couser emphasises. “The cruise lines have set that standard for us, because they cannot afford to be late. We spend a significant amount of time on pre-planning with our customers to ensure we understand the scope of the project and how we will deliver within the time frame available.” The company has moved on, he says, from the old-fashioned way of receiving a spec and putting a price to it. “Now, when we receive a spec, we immediately engage with the customer and develop a plan together, confirm the plan and then price it. That way the customer can see the schedule, what work is happening at any time within the dry dock period, enabling the customer to bring in their experts and specific engineers just at the right time. We pride ourselves on taking the correct approach to project management as opposed to just pricing a spec.” At Grand Bahama Shipyard the lead time from receiving a spec to the vessel arriving is usually about three months, although some projects can be booked as far as two years ahead, while others can be accommodated in as little as a week, in an emergency and if dock space is available. “Dock occupancy for the first quarter of this year is at 90 per cent,” says Couser, “so we’re actually fully occupied at the moment. That’s including cruise liners, RoRo ferries, tugs and barges, and a product carrier, so it’s a varied cross section of the market. “Our goal is to become the most respected, diversified and ‘go-to’ ship repair yard in the Americas,” Couser concludes. “Based on last year’s performance, we’re well on our way. GBSL is supported by its shareholders, a knowledgeable and dedicated management team and a highly skilled work force to ensure our success.”

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news

MULTIPURPOSE SHIPPING FREIGHT RATES TO IMPROVE BY END 2017

“The oversupply situation, which has dogged this sector for many years, is expected to level out in the medium term”

he multipurpose shipping market will see the first signs of recovery by the end of 2017, following in the steps of the dry bulk and container shipping markets, according to the latest Multipurpose Shipping Market Review and Forecaster report published by global shipping consultancy Drewry. Dry cargo demand is weak but strengthening with multipurpose shipping market share expected to grow at just under 2% per year to 2020. Demolition levels are up in both the multipurpose and competing sectors, whilst newbuilding ordering has waned, which will result in minimal aggregate multipurpose fleet growth to 2020. The future market prospects for the multipurpose shipping sector are not only dependent on the supplydemand balance for that

segment, but also on the other vessels that compete for breakbulk and project cargo, in particular Handy bulk carriers and container vessels. “Slow growth in supply, alongside better growth in demand, is expected to help multipurpose charter rates in 2017 and beyond, supported by a recovery in the dry bulk market, albeit a slow one,” comments Susan Oatway, lead analyst for multipurpose shipping at Drewry. “In particular, the oversupply situation, which has dogged this sector for many years, is expected to level out in the medium term.” The new International Maritime Organisation (IMO) regulation on ballast water management is likely to have a small effect on demolition levels in the multipurpose sector, and even more so for the bulk carrier sector. At the same time any investment in this

sector will be in project carriers (with a lift of 100 tonnes or more) producing fleet growth in this segment of almost 3% pa to 2020, whilst the general cargo segment will contract at around 2% pa over the same period, leading to overall MPV fleet growth of less than 1% pa to 2020. “On the face of it, the supply-demand balance is levelling out, demand is growing faster than supply and the market is improving,” added Oatway. “As ever, it is the competition for cargoes from bulk carriers and containerships that will keep rates in this section of the market subdued for at least another 12 months. Until rate increases are sustained in the bulk carrier and container ship sectors, there will be little reprieve in their drive to obtain further market share.”

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fter the UK vote to leave the European Union, the ratification of the Paris Agreement on climate change, Donald Trump’s election to the US presidency and with further political and economic milestones ahead, International Petroleum (IP) Week 2017 - hosted by the EI in London from 21 to 23 February - will offer a timely forum to assess the future impact of these events on the global oil and gas sector, as well as debate the effects of industry-specific issues such as oil prices remaining low and OPEC’s production cuts. Over the three days of conferences, roundtables and social events, delegates will receive insights from distinguished figures including Mohammad Sanusi Barkindo, OPEC’s Secretary General, Dr Hoesung Lee, Chair of the Intergovernmental Panel on Climate Change (IPCC), H.E. Dr Mohammed Bin Saleh Al-Sada, Minister for Energy and Industry, State of Qatar, alongside leaders from major oil and gas operators, including Igor Sechin, Chief Executive Officer of Rosneft, Gretchen Watkins, Chief Executive Officer, Maersk Oil and Saif Humaid Al Falasi FEI, Group Chief Executive Officer, Emirates National Oil Company. Those attending the prestigious IP Week dinner on 23 February will also hear from Patrick Pouyanné, Chairman and CEO of Total. “IP Week 2017 will address some

news

IP WEEK 2017 WILL ASSESS AN EVENTFUL YEAR FOR OIL & GAS “We are keen to address the question: who and what really affects our industry?”

critical issues and trends for our industry,” says Raphael Vermeir CBE FEI, Chairman, IP Week Programme Board. “In particular, we are keen to address the question: who and what really affects our industry? So we will hear from NOCs, IOCs, Independents but also trading houses and financial experts, as well as regulators and government leaders. This busy programme features highly relevant speakers and I hope delegates will be really excited to listen to the presentations and engage in the dialogues they will undoubtedly create.”

“Over the years, IP Week has become an unmissable event for oil and gas industry executives as a global platform for thought-leadership on the issues affecting the sector”, says Louise Kingham OBE FEI, Chief Executive, Energy Institute. “This year will be of particular interest considering the significant events of the past few months. We are entering a new era in international relations and trade, and IP Week 2017 will represent a particularly valuable opportunity to gauge the mood and expectations of the oil and gas industry in these challenging times.”

NOR-SHIPPING CELEBRATES AS CHINA AND NORWAY RESUME RELATIONS

orway and China have resumed diplomatic relations, ending six years of political discord after the award of a Nobel Peace prize to a Chinese dissident in 2010. “This is very good news for maritime cooperation between China and Norway, and truly great news going towards Nor-Shipping 2017,” says Nor-Shipping Director Birgit Liodden. “We have already

made China a specific focus area. Our upcoming ‘Agenda Ocean Conference’ features a ‘One Belt, One Circle’ session, with insights on the One Belt project combined with the Chinese plans for the Northern Sea Route.” Shanghai-based Peggy Liu, Chairperson of the Joint US Chinese Collaboration on Clean Energy, will be one of the dynamic and highly inspirational Chinese

speakers at Nor-Shipping. “The renewed bonds and cooperation only makes it all the more exciting to welcome the Chinese exhibitors and delegates to Oslo in 2017,” Liodden adds. “As China’s 13th 5-year plan emphasizes their high ambitions on innovation and R&D, this will be a perfect fit with Nor-Shipping’s Disruptive Sustainability initiative,” Liodden concludes.

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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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HEMPEL INTRODUCES NEW COATINGS FOR OFFSHORE ASSETS IP ASSETS OF CONTROLLED VARIABLE BUOYANCY SYSTEMS UP FOR SALE

he intellectual property assets of Controlled Variable Buoyancy Systems Limited (CVBS), the company behind proprietary subsea technology for the decommissioning segment in the oil and gas sector, are being offered to the market by intellectual property consulting firm Metis Partners. Incorporated in 1997, CVBS was established to develop and commercialise an innovative patent-protected system for the removal and retrieval of heavy subsea structures. The company’s Italian-based parent company, A.T.S. S.r.l. is now selling the company’s IP assets to focus on its core business interests. Designed to reduce the cost of decommissioning and increase the efficiency of mobilising and repositioning heavy subsea objects, the CVBS technology sits well within the growing market segment of decommissioning in the oil and gas sector. “We expect the sale to be of interest to parties in the subsea, decommissioning, oil and gas, deep water recovery, renewables, engineering, construction and manufacturing sectors,” said Nat Baldwin, head of brokerage at Metis Partners. The IP assets for sale include granted patents, proprietary software, a design portfolio, goodwill rights and extensive organisational knowledge. All offers should be submitted directly to Metis Partners by noon on Wednesday 22nd February 2017.

wo new coatings, Hempadur Quattro XO 17820 and 17870, are being introduced by coatings supplier Hempel to increase the service life and reduce onstation maintenance requirements of offshore assets. The new high-performance pure epoxy uni-primers combine excellent corrosion protection with construction flexibility. The new coatings are part of a series of two-component epoxy primer coatings which provide advanced crack resistance using Hempel’s patented fibre technology. They can be applied in immersed and non-immersed areas of any offshore asset, from offshore platforms and drilling rigs through to support vessels. The products are fully compliant with the IMO Performance Standard for Protective Coatings (PSPC) regulations. Hempadur Quattro XO 17820 / 17870 can be applied to multiple areas above and below the waterline, including ballast water and oil cargo tanks, and can be applied year-round with workability from -10˚C/14˚F to 45˚C/113˚F. Hempel’s Oil & Gas Segment Manager, Simon Daly, said: “For asset owners, the key benefits of Hempadur Quattro XO are that fewer variations of protective coating are required across the structure; lifecycle maintenance is greatly simplified and downtime for re-coating is significantly reduced, saving time and money. For yards and coatings applicators, the fact that the product is quick drying and can be applied even during winter months, means that project schedules can be maintained without painting activities being interrupted.

Oil, Gas and Shipping Magazine www.ogsmag.com

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Prior to automatic welding, verifying the shape of a bevel is crucial. The new Laser Bevel Tool from OMS eliminates doubt about bevel compliance and provides pipeline engineers with an unrivalled insight into critical pipe bevel geometry. The tool can be deployed immediately after bevelling, prior to pipes being moved into production, and performs a complete scan of a pipe end within 16 seconds. This produces a 360 degree measurement profile. The operator receives a simple red or green, go / no-go indication with the option to investigate parameters in greater detail using bespoke software.

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For more information, contact OMS on info@omsmeasure.com or visit www.omsmeasure.com OMS UK Office Unit 9, M11 Business Link, Parsonage Lane, Stansted, Essex CM24 8GF +44 (0) 1279 656038

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news GLOBAL MARINE SYSTEMS EXTENDS ATLANTIC CABLE MAINTENANCE AGREEMENT

G “The resilience of communication networks throughout the Atlantic and Western South America is critically important to companies and consumers alike”

lobal Marine Systems Limited, provider of subsea cable system design, installation and maintenance, has been awarded the renewal of the Atlantic Cable Maintenance Agreement (ACMA), alongside its Atlantic partner for maintenance services, Orange Marine. The new contract began on 1 January 2017 and runs for five years, through to December 2021. ACMA is a non-profit cooperative subsea maintenance agreement consisting of 60+ members. ACMA members are companies responsible for the operations and maintenance of undersea communications and power cables, as well as oil & gas platform operators, in the Atlantic, North Sea and South Eastern Pacific Ocean. Global Marine has delivered maintenance services across the Atlantic since the first cable was laid in the 19th century and has been a key supporter of ACMA since its inception in 1965. Global Marine currently delivers maintenance support

in three of the six zone agreements globally. Global Marine’s dedicated maintenance vessels, the Wave Sentinel and Pacific Guardian, will be servicing ACMA17 from their respective bases in Portland, UK and Curaçao in the Netherlands Antilles. Both vessels are fitted with powerful remotely operated vehicles, the Atlas and ST200 series respectively, which offer flexible, effective solutions for monitoring, cutting and burying cable. Global Marine has played a pioneering role in the development of undersea cable repair and maintenance solutions for well over a century, having performed approximately 33 per cent of all maintenance operations on fibre optic cables globally. The company is a founding and current member of the Universal Joint Consortium, an international crossindustry body supporting the manufacturers and consumers of universal joint and universal coupling technology. Global Marine remains at the forefront of

this vital part of the industry through its well-renowned training school utilised by many of the key telecoms installation and maintenance companies and cable manufacturers around the world. “We appreciate the confidence placed in us by the Atlantic Cable Maintenance Agreement members and look forward to ensuring that their cables are effectively protected,” said John Walters, Maintenance Director, Global Marine. “The resilience of communication networks throughout the Atlantic and Western South America is critically important to companies and consumers alike, and Global Marine is proud to again be of service to maintain these vital connections.” “We trust the Global Marine and Orange Marine solution,” said Alasdair Wilkie, Chairman, ACMA. “Over decades, the two companies have repeatedly demonstrated their pedigree and experience in this highly specialised area.”

Oil, Gas and Shipping Magazine www.ogsmag.com

news

FAGIOLI AND RINA ENSURE SMOOTH INSTALLATION OF HEBRON PLATFORM TOPSIDES

T “The verification of the stability, sea-keeping and structural integrity was of paramount importance”

he Hebron oil field is located offshore Newfoundland and Labrador, Canada in the Jeanne d’Arc Basin. The field has undergone significant development using standalone concrete gravity based structure that will withstand harsh local conditions. First oil from this new expansion is scheduled for late 2017. Fagioli, the Italian based experts in heavy cargo transportation and lifting, were contracted to provide support for the lifting and installation of the huge topsides for the platform, in partnership with RINA Services who provided specialist verification services to ensure the project ran smoothly. A massive 45,000 tonne utilities process module was shipped from Korea to the Bull Arm site by a heavy transport vessel. At the

Bull Arm site a substantial portion of the topside has been integrated, including the living quarter module, being installed using a heavy lifting barge. Due to the height and weight of the module (more than 4,000 tonnes), the assessment of the barge’s stability and weather-induced motions were critical to the success of this phase of the project. RINA Services carried out detailed technical analysis to verify design, structure and stability. “The verification of the stability, sea-keeping and structural integrity was of paramount importance,” said Dino Cervetto, Director Technical Services at RINA Services. “Because of the height of the structure any small movement of the barge would be greatly amplified at the top of the module. Ensuring

stability was necessary for successful transportation and installation. This involved advanced technical analysis – something which RINA Services has a great deal of experience and expertise in providing.” Andrea Massera, Chief Engineering Officer at Fagioli said: “One of the major challenges of the project was verifying that the prevailing conditions would allow the installation operation to be carried out successfully and safely. Too much movement of the barge and the corresponding module would have made the process impossible. Fagioli has leading, worldwide experience in heavy lifting and transportation. With the support of RINA with advanced assessment and verification services, this phase of the project was a great success.”

Oil, Gas and Shipping Magazine www.ogsmag.com

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news

OPEC OUTPUT FALLS IN DECEMBER

il production from the Organization of the Petroleum Exporting Countries (OPEC) fell by 280,000 barrels per day in December, due to hefty falls in Nigeria and Saudi Arabia, a month before the group’s pledge to rein in production, according to the latest survey of OPEC and oil industry officials and analysts by S&P Global Platts. “There are some encouraging signs that OPEC will deliver on its promised output cuts,” said Eklavya Gupte, senior editor for S&P Global Platts. “But the crucial question is whether

CHEMICAL GIANT INEOS OPENS NEW UK HEADQUARTERS

OPEC and non-OPEC can make the compliance stick long enough to clear out the stock overhang. If both Libya and Nigeria post a swift output recovery and compliance starts to wane, the deal would unravel. A close eye will also be kept on the US shale oil industry, as it seeks a rebound in output amid higher oil prices.” OPEC’s 13 members saw their collective December output fall to 32.85 million b/d from 33.13 million b/d in November. The producer group has agreed to cut 1.2 million b/d from its October output level for six months INEOS has opened its new UK headquarters in Knightsbridge, London, reflecting the company’s growth in the UK where it is investing more than $2 billion in a range of projects. “Whilst INEOS is an Anglo-Swiss company, our new base in London reflects our British roots,” said INEOS founder and chairman Jim Ratcliffe. “The future for INEOS is very bright and much of this optimism comes from our UK based operations. We currently supply one in ten British homes with gas, we have a growing trading and shipping business and our chlorvinyls business has doubled in size. We are also planning to extract shale gas in the north of England and to grow the newly revitalised Grangemouth.” The UK headquarters will include offices for senior management,

starting from January 1, and freeze production at around 32.5 million b/d. As part of global efforts to curb the crude supply glut, 11 non-OPEC countries led by Russia have also agreed to cut output by 558,000 b/d in the first half of 2017, with Russia shouldering the majority of that burden, with a 300,000 b/d reduction. The December fall comes after OPEC reached a new production record in November and is the first fall in seven months as Saudi Arabia provides an encouraging sign that it is set to lead the cuts by example. plus the shale exploration, trading and shipping and INOVYN teams. INEOS’ move back to the UK also reflects its increased confidence in the UK and the favourable climate for growth and business. “We have immense confidence in Britain’s economic future,” said Ratcliffe. “The current business climate makes siting our new headquarters in the UK an easy decision. INEOS will continue to grow both in the UK and worldwide. Britain is a good location to ensure both of these goals. “ Climate Change and Industry Minister Nick Hurd commented, “This government has been clear that Britain is open for business and it is welcome news that INEOS are locating their UK headquarters in London. This decision is another vote of confidence in the British economy.”

Oil, Gas and Shipping Magazine www.ogsmag.com

news

RECORD BREAKING CONTRACT FOR MECH-TOOL ENGINEERING

O “Mech-Tool Engineering has been appointed by Wood Group to provide a full turnkey service including design, manufacture and pre-commission of the modular units”

ne of the UK’s leading product designers, manufacturers and global suppliers of fire, blast and heat hazard protection solutions has been awarded a £37 million contract to deliver a field operations office module and twenty remote instrument enclosure modules. Mech-Tool Engineering Ltd – which has offices in the UK, Houston and the Middle East as well as manufacturing facilities in Korea – has been appointed by Wood Group to provide a full turnkey service including design, manufacture and precommission of the modular units. The delivery of Mech-Tool Engineering’s modules will take place over a phased period from now until

T TRELLEBORG EXPANDS CENTER OF EXCELLENCE

relleborg’s marine systems operation has relocated and almost doubled the size of its engineering and design center of excellence in a new 1,000 square meter premises in Ahmedabad, India. The new premises represents a significant expansion to Trelleborg’s in-house engineering capability, which includes

2019. The project involves multiple disciplines with the system being integrated and designed to function at optimum performance in extreme environmental conditions. Already the new project has led to the company creating an additional 20 new jobs ranging from design engineers to welders and platers and the business estimates the contract will lead to further subcontract positions. With a keen focus on investment and improvement, MechTool Engineering has recently secured a world leading quality standard – ISO 9001:2015 – only four months after the accreditation was first launched. Speaking about the contract win Steve Oliver, business finite element analysis (FEA), while growing Trelleborg’s team of industry-leading multi-disciplined structural, mechanical and electrical engineers. “While many companies outsource their engineering and manufacturing requirements, Trelleborg continues to invest in its market-leading in-house capability,” said Amit Madan,

development director at Mech-Tool Engineering said: “We are delighted to have excelled against international competition to secure this major contract - and as a result - provide additional job opportunities for the local community.” The overall combined weight of the contracted modules is currently estimated to be circa 1760 tonne. All modules will be purpose built by Mech-Tool Engineering to the client’s exacting specified explosion, seismic, thermal, fire and acoustic performance criteria. All components will be fully tested in-house using the most up to date equipment and testing procedures prior to deployment to ensure the highest standards are met. Regional Director (IMEA). “Our previous premises provided fantastic support and extremely quick design turnaround for our marine systems operation. However, the new Indian center of excellence promises to further strengthen our endto-end service from design through manufacturing and testing, to installation and maintenance.”

Oil, Gas and Shipping Magazine www.ogsmag.com

news

OSM ASSUMES FULL TECHNICAL MANAGEMENT FOR FORLAND SHIPPING

orland Shipping of Bergen, a Norwegian operator of offshore construction vessels, has awarded OSM full technical management of its two OCVs, Fugro Saltire and Lewek Inspector. OSM already provides the crew to the vessels. “Being a small shipping company operating in a very challenging market, we have to minimize our operational cost, at the same time as we sustain the traditionally high performance of our vessels,” says Forland Shipping’s managing director, Bjørn Kristian Jæger. “After years with OSM responsible for crew management of our vessels, we are convinced that the present outsourcing of technical management will be the right answer to this situation. Furthermore, this decision also enables us to focus more on strategy, business development and marketing, which we believe will be

PRIME MERIDIAN IS GRANTED PETROLEUM COMMISSION LICENSE

“Many of the smaller ship owning companies in the offshore sector are looking for ways to reinvent themselves. To do so requires being able to focus on strategy and business development rather than operations”

rime Meridian Docks (Ghana) Limited has been granted a license to

mandatory for any company’s success in the future. Among others, OSM will also be one of our important resource partners in this sector.” “We are very proud that Forland has chosen to extend our cooperation to full technical management,” says OSM’s CEO, Geir Sekkesæter. “It is a strong indication that our organization is doing a good job when our customers look for further opportunities whereby we can help them; in this instance, helping to reduce operational costs, increase purchasing power, and access to OSM’s worldwide network. “I believe that many of the smaller ship owning companies in the offshore sector are looking for ways to reinvent themselves. To do so requires being able to focus on strategy and business development rather than operations, and partnering with OSM can help to achieve just that.”

provide services to Ghana’s upstream sector by the Petroleum Commission, Ghana. Prime Meridian Docks provides ship owners with a cost-effective port-call option for planned and unplanned maintenance, repairs, inspection and recertification, modifications and refits. The facility

supports offshore project mobilizations, as well as asset preservation, lay-up/ stacking & reactivation. The company also holds Free Zone Enterprise Status, enabling it to offer customers competitive pricing and a more efficient service delivery due to the minimal customs procedures for imports of spares and parts.

Oil, Gas and Shipping Magazine www.ogsmag.com

MENTAL HEALTH IN OIL AND GAS Energy talent recruiter Petroplan has launched a campaign focused on mental health in the oil and gas sector, an area that can often be neglected in favour of a focus on the physical health and safety of employees. As part of the campaign Petroplan spoke to mental health expert and lecturer at Robert Gordon University Dr Steven Smith, who believes that a lack of industry focus on the mental health of workers is the biggest risk to the sector.

necessary condition of working offshore in the oil and gas sector is being away from home. Different people respond in different ways, obviously, but generally, being separated from loved ones has a negative impact on people’s psychological wellbeing—particularly at important events; birthdays, first day at school, graduations, that sort of thing, where the person offshore is aware that he/she is missing out on a shared event. What is more harmful, though, is the changing pattern of

Oil, Gas and Shipping Magazine www.ogsmag.com

‘being’ in the family. Offshore workers have to change their way of living (as do their loved ones) according to their rota, and this lack of constancy is stress provoking for many people. This is the cause of ‘counting down’ days until the end of one period offshore (and the heightened stress that comes if that departure is delayed because of weather, or whatever) and the same experience before going back offshore (only two days left until I’m away again). Constantly dealing with change, and the unexpected, is very stressful.

mental health in oil and gas

High pressure working environments

We can only operate at optimal levels under pressure for relatively short periods of time, then our ability to retain a high level of concentration begins to diminish. We become more easily distracted in our thinking, and thus we have to put greater effort into maintaining our focus. All of this depletes our physical and psychological reserves, leaving us less able to respond to the demands of everyday life, and building up underlying levels of stress.

Research suggests that offshore workers have higher levels of stress than onshore colleagues in the oil and gas industry, and that this exhibits itself in feelings of being ‘strung up’ and ‘constantly under strain’. This is hardly surprising, but it’s important to recognise that, just as we might go to the gym to develop and maintain our physical resilience, we can also develop and maintain our psychological resilience. Activities based around mindfulness based stress management, for example, can help us respond in a more functional manner to Oil, Gas and Shipping Magazine www.ogsmag.com

“No organisation in this industry would accept a situation where 50 per cent of valves, or pipes, or any piece of equipment were unable to work at full capacity because they hadn’t been properly maintained”

Johan Sverdrup - Photo Statoil ASA - Statoil

Oil, Gas and Shipping Magazine www.ogsmag.com

mental health in oil and gas the stress that offshore working puts us under.

Risky territories

I think this is a central issue that goes beyond war zones, although it is highlighted in that sort of environment. Almost any oil and gas operation in remote areas is, by definition, risky. Workers in the industry are well trained and practised in recognising and dealing with dangerous environments; however, we see what we look for, and this means that remote workers can develop a cognitive bias towards perceiving danger around them, including time when they are out of the high risk environments in which they work. In other words, we come to see danger, or risk, everywhere; and, understandably, that is extremely stressful. While the industry has to maintain and develop the extremely high levels of vigilance of all operatives in all environments, we also have to find ways of helping people refocus and retune their ‘risk radar’ when they are back in the ‘normal’ world. Otherwise, what we can be left with is a general state of freefloating anxiety—a feeling of marked unease, but without an obvious cause to relate it to.

A macho environment

I think it is still seen by many people, particularly in the current economic environment, that admitting to feeling low, or stressed, could be seen as ‘weakness’, and any form of ‘weakness’ is seen as something to be avoided. That’s why it’s important for organisations to promote these issues; pretending that they’re ‘not there’ is damaging the entire industry. We know the levels of stress-related illness across British industry, as a whole, and we know that stress-related illness is now the most common reason for people to be absent from work. Therefore, we can assume that somewhere between a third and a half of the offshore workforce are working at a suboptimal level due to stress. Apart from the massive human impact, no organisation in this industry would accept a situation where 50 per cent of valves, or pipes, or any piece of equipment were unable to work at full capacity because they hadn’t been properly maintained. That’s why, particularly in the current climate, we need a culture shift; a shift to a culture in which the ‘toughest’ recognise they have to train to stay on top, and the need to train emotionally and psychologically is greater than the need to train physically. I hear from people I talk to that a lot of the younger guys working offshore now are more open to ideas like yoga, and mindfulness, and promoting their mental wellbeing, but as a culture we need the lead to come from a senior level, to promote mental health and wellbeing not only as a way of helping their workers stay healthy, but as a way of properly maintaining their most expensive and sophisticated assets.

Transitioning back to ‘normal life’ after many years of living these two lives can be stressful too. We are essentially creatures of habit and any change to our routine, whether it’s wanted or unwanted, is stressful. These are situations that are also seen when people retire, or give up long-distance driving jobs, or make any change that alters the way they relate to those around them. The important thing is to recognise that all of these things are stressful and to accept that. The worst thing we can do is try and pretend that ‘I’m not feeling this way’; it would be abnormal not to be feeling this way, so the most appropriate thing is to recognise it, accept it is there, and then begin to do something about it. Talking to someone, perhaps just a mate or family, or perhaps a family doctor, is the first step to dealing with it.

Final thoughts

We all know the consequences of not dealing with a problem on time in the oil and gas industry. Tragically, we have seen the catastrophic consequences of unmanaged problems several times over the past four decades, and more. That there haven’t been more of these disasters over the years is something that the industry can be rightly proud of, that the focus on prevention of accidents and negative events is a central part of the culture of the oil and gas industry. However, the consequences of unmanaged stress can be just as catastrophic; catastrophic for the individual, for their families, for the people and organisations they work for, and for the industry as a whole. We have eradicated, or controlled for, almost all the risk factors in the highly dangerous environment of oil and gas exploration and retrieval; the biggest risk factor we have left is our own refusal to respond to issues of mental health and wellbeing across the industry.

‘Normal life’

There are difficulties in transitioning back to normal life after being offshore for a long time. Does life offshore become your normal? This is a major source of stress for many workers, and their families. I wouldn’t say that ‘life offshore’ becomes your normal so much as the constant shift between two lives becomes your norm.

Dr Steve Smith is Senior Lecturer (Enterprise Fellow) in Mental Health and Wellbeing at The Robert Gordon University Garthdee Campus, Aberdeen

Oil, Gas and Shipping Magazine www.ogsmag.com

S&P GLOBAL PLATTS: OIL AND GAS OUTLOOK 2017

S&P Global Platts, the leading independent provider of information and benchmark prices for the commodities and energy markets, offers an overview of the key trends and themes to watch for in 2017. Oil

The first OPEC-led global production cut in 15 years underpins an emerging but fragile recovery, with 2017 set to see a huge stock overhang disappear by the third quarter and the oil market move from over-supply to a more balanced supply/demand situation, according to Platts Analytics. With Saudi Arabia and Russia joining forces to cut output by almost 800,000 b/d in the first six months of the year, and other oil producers under pressure to comply with their share of cuts to bring the total close to 1.8 million b/d, there remains a great deal of optimism in some quarters that the pace of rebalancing will be accelerated; in others there is skepticism that OPEC and its non-OPEC associates can really deliver. Just how fast the market rebalances will depend on the discipline to enforce and maintain the cuts across a disparate group of oil producers, especially with crisis-ravaged OPEC

between 35 and 40%. The Permian Basin could be the biggest beneficiary of expected double-digit increases in capital budgets in 2017. Platts Analytics forecasts that production in the West Texas/New Mexico basin will reach 2.226 million b/d in 2017 up from slightly below 2 million b/d in 2016. An increase in US crude production and a wider WTI-Brent spread since the end of 2016 are raising hopes that 2017 will be the year when US crude exports see a marked increase. For the third year in a row, India’s oil demand growth will outpace China’s. Platts Analytics is forecasting a 7% rise to 4.13 million b/d in Indian oil demand in 2017, compared with a 3% rise in Chinese oil demand to 11.50 million b/d. China’s independent refiners, which had emerged as increasingly significant importers of crude, are facing uncertain times. China has removed independent refiners from its oil product export quota allocation, which should see

“The next few years will be shaped by the relationship between US shale and OPEC, Russia and other key oil producers” members Libya and Nigeria exempted from the agreement, but with the potential to see large additions in output. Moreover, the speed of return by US shale producers could ultimately keep a lid on prices. Most oil companies appear generally optimistic that prices will rise to a more sustainable level in 2017, but spending is likely to stay modest for now and production growth moderate. Caution is likely to dominate the North Sea oil industry, with a mini-revival in production in the last two years juxtaposed against years of decline since production peaked in 1999. “The next few years will be shaped by the relationship between US shale and OPEC, Russia and other key oil producers,” says Paul Hickin, Oil Editorial Director, S&P Global Platts. “This landmark agreement between OPEC and non-OPEC is providing a floor to oil prices and US shale is providing the ceiling. Compliance to the deal until the stock overhang disappears, most likely by the third quarter of 2017, according to Platts estimates, will be pivotal to ensuring the price floor holds, while the speed of return of US shale will determine how low the ceiling becomes.” Reflecting large production cost reductions and productivity gains, Platts Well Economics Analyzer estimates that if US crude benchmark West Texas Intermediate reaches $65/b, leading US production areas have an internal rate of return of

Oil, Gas and Shipping Magazine www.ogsmag.com

independents’ crude imports fall sharply. These challenges are likely to undermine the independent refiners’ profitability and slow increases in refining capacity. For the wider market, the trend to follow is the move towards importing sweeter crudes with lower sulphur, notably from Angola, the North Sea and possibly the US.

Gas

The big question for the gas market in 2017 is whether strong signs of the emergence of a truly global gas market, evidenced by a large degree of price convergence between regional markets in 2016, will evolve further. Traditional pricing in international gas trade has been based on oil indexation, but the oil price rollercoaster of the last few years, increasing LNG production and growing competition between LNG and pipeline gas have led to a rethink. The trend for de-indexation to oil is likely to continue in 2017. This is illustrated by the emergence of the Japan Korea Marker (JKM) as a regional benchmark for LNG delivered into Japan and Korea. The marked increase in liquidity for swaps based on JKM prices is indicative of a market need for a pricing mechanism more reflective of the specific supply/ demand balance of the gas market, one that offers more effective risk management opportunities.

analysis

Platts Analytics forecasts an increase in LNG production in Asia to 127 million mt/year for 2017, up 16% on 2016, led by increased capacity in Australia, while commissioning of the world’s first floating LNG plant in Malaysia heralds new global opportunities for LNG production. Nevertheless, Asia will continue to be a net LNG importer as demand across the region is forecast to grow 6% to 195 million mt/year in 2017. While demand in the large, mature Japanese and Korean markets is likely to remain flat, Platts Analytics expects China and India to boost their imports of LNG respectively by 28% and 38%.

conditions, thanks to growing export opportunities and stronger domestic demand, should lead to higher prices. In Europe, the availability of (and growing access to) LNG imports has led to a market share offensive by traditional pipeline suppliers. Russian gas supplies to Europe, which hit an all-time high in 2016, are expected to be strong again in the first months of 2017 as buyers look to max out their takeor-pay volumes ahead of a likely rise in oil-indexed contract prices. Falling domestic European supply from Norway, UK and the Netherlands means a growing supply gap that will need to be filled, mainly by LNG and Russian gas. Moreover,

“Russian gas supplies to Europe, which hit an all-time high in 2016, are expected to be strong again in the first months of 2017” As LNG production capacity continues to expand rapidly, particularly in the US and Australia, Platts Analytics forecasts an inevitable global LNG surplus that is expected to last until 2024. Some of this surplus is expected to find buyers across Asia, as the region is in structural deficit and pricing conditions remain economically viable. In the US, the march towards a globalizing gas market means growing pipeline exports to Mexico and rising LNG exports to Latin America, Asia and Europe. Platts Analytics estimates US gas production will resume its growth and hit 74.7 Bcf/d in 2017, up 2.5 Bcf/d on 2016, while tighter regional market

coal-to-gas switching, and the closure of coal plant in Europe, should provide a boost to European gas demand. “2016 saw significant price convergence in the gas market and the strengthening of the JKM towards end-year is likely to prove temporary,” says Ross McCracken, Managing Editor of Platts Energy Economist. “The growing surplus of LNG, combined with the desire to burn cleaner fuels, creates positive conditions for coal-to-gas switching in 2017. In turn, this could provide the basis for more sustained growth in world gas demand and eventually another round of investment in the global LNG sector.” Oil, Gas and Shipping Magazine www.ogsmag.com

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analysis

UNDERSTANDING OPEC’S OIL OUTPUT DEAL With Russia, Azerbaijan and Kazakhstan lining up with OPEC, what does the latest production agreement mean? Anna Belova, GlobalData’s senior oil and gas analyst, untangles the web

t the November meeting of the Organization of the Petroleum Exporting Countries (OPEC) in Vienna, Russia delivered a few surprises. Not only did the country broker an agreement between rival Saudi Arabia and Iran, but Russia also committed itself to substantial production cuts. For almost a year, Russia had signalled that it would only freeze its evergrowing production as part of an OPECled production stabilization scenario. The decision to cut 300,000 barrels per day (bd) of crude output in the first five months of 2017 was a noteworthy departure from Russia’s earlier strategy and was much welcomed by markets, sending global crude prices climbing. By mid-December, Russia and Saudi Arabia persuaded an additional 10 non-OPEC countries, including major former Soviet Union (FSU) producers Kazakhstan and Azerbaijan, to participate in the deal with additional 258,000 bd of committed production cuts. The production cut deal was a year in the making, driven by the energy ministers of Saudi Arabia and Russia, but the Russian side of the deal required

a commitment from many distinct industry participants. The fact that Russia’s oil industry ownership structure significantly differs from that of Saudi Arabia and many OPEC members complicates the implementation of output cuts. Instead of a traditional national company, Russia’s industry is dominated by large publically-traded

“Production cuts are scheduled to be gradual” companies, with the Russian state holding majority interest in several giants such as Rosneft and Gazprom. After a decade-long push for consolidation of Russia’s oil and gas industry under state control, most other public and private oil companies opted to align themselves with the state. President Vladimir Putin personally discussed production cuts with Russian oil and gas companies and 12 major companies - responsible for over 90% of liquids production - committed to reducing output. Production cuts will be

in proportion to individual company’s production share of Russia’s output in October 2016. Production cuts are scheduled to be gradual, with a 50,000 bd reduction in January 2017; Russia’s output will be reduced by 200,000 bd by March and by a committed target of 300,000 bd by May 2017. Overall, the country’s production is targeted to be cut to 10,947,000 bd, which will still allow Russia to significantly out-produce Saudi Arabia, which has committed to 10,058,000 bd after a 600,000 bd reduction. Russia’s post-cut target, while representing a steep reduction from its December 2016 production of 11,208,000 bd, is only slightly lower than the country’s average production for the year, reported at 10,965,000 bd. Furthermore, since the agreement only covers production and not exports, Russia can easily maintain its current export level of 4,723,000 bd, at about 43% of all produced liquids, protecting its market share, while accommodating production cuts through domestic reduction in demand.

Oil, Gas and Shipping Magazine www.ogsmag.com

EXECUTIVE INTERVIEW

ØSSUR HILDUBERG:

HEAD OF DMAIB (DANISH MARITIME ACCIDENT INVESTIGATION BOARD) Øssur Hilduberg is Head of the Danish Maritime Accident Investigation Board (DMAIB), an independent unit under the Danish Ministry of Business and Growth. Øssur offers an interesting insight into the process of maritime accident investigations. What are the main functions of DMAIB?

At DMAIB, we investigate accidents related to Danish merchant ships in national and international trade and foreign ships in Danish, Greenland and Faroese territorial waters. Overall, the purpose of DMAIB is to investigate accidents to gain information, not only about specific accidents, but also to create knowledge and learning about the effectiveness of the existing strategies for mitigating risks at sea.

What attracted you to accident investigation?

It was a coincidence that I found my way into accident investigation. I grew up in the Faroe Islands and come from a family of fishermen. I soon realised that fishing was not for me so I opted for the comfortable life on large merchant ships. After getting my certificates as master mariner and marine engineer I sailed with a variety of ship types (oil tankers, gas tankers, container ships and offshore supply ships). As it happens for many seafarers, I had children and went ashore to work for the maritime administration. I am still fascinated with the fishing industry and how fishermen manage to work under the harshest of circumstances where the ship only serves as a platform for the highly specialised work of deep sea fishing. Unfortunately, we investigate too many fatal accidents on fishing vessels.

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What are your key responsibilities as head of DMAIB?

Besides the administrative managerial tasks my key responsibility is to deliver accident investigation reports of a high quality in terms of providing credible explanations for why a given accident occurred. Maintaining the quality of the accident reports entails having a continuous focus on developing new and updated methods for collecting data and ensuring that the analysis is made on the basis of contemporary knowledge about risk and safety.

What are the main challenges of maritime accident investigations?

Accident investigations typically have three stages; collecting data, analysing data and report writing. However, these stages are integrated, as we do not have a full view on what data to collect before we decide how the analysis will be made. We are usually in the process of collecting data until the final report is ready for publication. Each stage of the investigation poses its own challenges. When collecting data the main challenge is getting timely access to data from various sources such as the accident site, involved seafarers and back office personnel before they have a chance to talk to each other.

executive interview

Image credit DMAIB

In the stage of analysing accident data it takes quite a lot of training to avoid making some of the common analytical mistakes. For example, using counter-factual reasoning (the crew should have or could have done something), using hindsight biased data, using over-simplified linear accident models or more importantly only analysing data from the accident site and thereby overlooking the data collected from the back office. It is a common problem in accident investigation that the investigators are experienced seafarers who are biased towards other seafarers’ behaviour. Designing the report is always a

after the accident, depending on the complexity of the investigation. The factors that cause a delay to an investigation are not the collection of data and the analysis, but the consultation period where the involved parties are concerned about the content of the report. Furthermore, there can be bottleneck problems if we have several accidents occurring within a short time span. Nevertheless, we do our outmost to publish the report as quickly as possible because the involved organisations and individuals deserve to have the closure that an accident report can provide.

“The main challenge is getting timely access to data from various sources such as the accident site, involved seafarers and back office personnel before they have a chance to talk to each other” challenge in terms of what data to present and what data to omit, bearing in mind that different accident reports have different target audiences with different needs, as relatives to seafarer or passengers who have perished, seafarers, shipping companies and authorities require different levels of detail on various subject matters. At DMAIB we are continuously discussing how to design the report so it makes sense for the reader.

Each investigation is different, but what is the average lead-time?

The national regulation based on an EU directive states that the investigation should be concluded within twelve months. However, we typically publish a report within eight months

How does the industry learn from these results to help prevent future accidents? At DMAIB we have found that the maritime industry is not particularly a homogenous group in terms of the level of knowledge and understanding about safety and risk mitigation. Therefore, we try to design the report so it makes sense for the organisations involved in the given accident. It is inherently difficult to address safety issues which are recognisable for the industry as a whole, because different organisations do not have the same concerns. However, we have made a safety report about the problems with proceduralization of marine safety which seemed to resonate with many different stakeholders within the industry. In Oil, Gas and Shipping Magazine www.ogsmag.com

Image credit DMAIB

the future, we intend to publish similar safety reports about general safety related subject areas, e.g. accountability management, just culture and near-miss data. These reports might be a better way of communicating the accumulated learning we get from accident investigations.

watch, assembling engine parts wrong etc. These events are kept secret because of the lack of accountability management within shipping companies. Thereby, the reporting system gives a distorted image of the operation of the ship – hiding the structural problems that nobody is talking about.

What is your view on near-miss events?

Thirdly, the idea that near-misses are precursors of serious accidents can be brought into question. That near-misses have a predictive value is an idea which largely is derived from the work of Herbert Heinrich which was published in 1929. Since then knowledge about safety has evolved about how accidents occur (that causal factors for low probability/high consequence events are rarely represented in the analytical data on incidents that occur frequently) i.e. there is no common causal link between reported incidents and very serious accidents.

“Major accidents have become few and far between in most shipping companies so it has become necessary to collect other kinds of data to identify safety problems”

Fortunately, major accidents have become few and far between in most shipping companies. In the absence of accident data it has become increasingly necessary to collect other kinds of data to identify problems with safety. The basic idea of near-miss reporting is that the back office functions can elaborate reporting systems to learn about what is happening on the ships – the aim is organisational learning with the purpose of avoiding accidents with serious consequences. Even though the idea of near-miss reporting is well intended, it seems to have very little effect or at times have adverse effects. There are a number of problem areas and I will highlight three of them. Firstly, there is not a stable definition of what a “near-miss” is, to separate normal work problems from something which is reportable. The lack of a definition creates a reporting practice which is driven by the ship trying to meet reporting demands, resulting in reports about everyday events with little potential for learning. Secondly, our investigations have shown that there is a clear under-reporting of events which we know will occur, in events such as near collisions and groundings, falling asleep on the

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Image credit DMAIB

executive interview

Image credit DMAIB

What advice would you give those at sea about compliance with SOLAS (The International Convention for the Safety of Life at Sea)?

As a bureaucrat I am reluctant to give advice to seafarers on subject matters they are experts on. There is a tendency that seafarers that go ashore to work for various organisations and authorities believe that experience is like wine – which gets better the older it is. I am not an expert on how to govern a ship, but I am an expert on how to investigate accidents. In my experience as investigator, I have found that seafarers are not that interested in SOLAS or any of the other conventions, because they are busy with other more important and pressing matters on the ship. One should also note that in reality most shipmasters are working in an environment of distributed authority – between the charterer, the ship management organisation, and the owners. In the continuous communication with the shore-based technical and commercial management, the master is subjected to other forms of authority that challenge the shipmaster’s legitimised authority on board. In reality, most shipmasters have a diminishing command of the ship and its resources.

Compliance with the conventions is no longer a matter for the shipmaster to decide on, but an administrative back office concern in technical departments.

How aware are trainees of the responsibilities and skills required to be a master mariner?

I am very positive about the trainees that I meet in various lectures and during investigations. They are embracing the new technology and have genuine interest in how it works and what the weaknesses are – they are being trained for the increasing complexity of ships. The trainees are therefore better prepared to the reality of modern shipping than the more senior officers. More importantly, I find that they are more pragmatic about the life at sea and some use it as a stepping stone for doing something else later in their professional life. These changes are not necessarily welcomed by the most senior officers and some resistance or scepticism can be expected. Learning the skills and getting the sense of responsibility is primarily a task for the shipping companies and the on board crew. Their attitude towards training is vital for the success of having qualified junior officers.

Paul González-Morgan Editor, Gibraltar Shipping Email: shippinggib@gmail.com Twitter: @ShippingGib Web: www.gibraltar-shipping.com Image credit DMAIB 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.”

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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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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.

Oil, Gas and Shipping Magazine www.ogsmag.com

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