Offshore world apr may 2017 by Offshore World

VOL.14 | ISSUE 3 | APRIL-MAY 2017 | MUMBAI | US $ 10 | ` 150

OFFSHORE WORLD

INSIGHT INTO UPSTREAM & DOWNSTREAM HYDROCARBON INDUSTRY

APRIL-MAY 2017

Addressing the future Challenges

VOL. 14 ISSUE 3 MUMBAI US $ 10 ` 150

International Exhibition & Conference February 2018 : Mumbai, India

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CONTENTS

INTERVIEW VOL. 14 | NO. 3 | APRIL-MAY 2017 | MUMBAI | US $ 10 | ` 150

Technology will be the key driver for the growth of lubricants across all industrial segments -Mr Siva Kasturi, Asia Pacific Regional OEM Manager Shell Global Lubricants

OFFSHORE WORLD R.NO. MAH ENG/ 2003/13269 Chairman Publisher & Printer Chief Executive Officer

EDITORIAL

Editor Editorial Advisory Board Design Team Subscription Team Production Team

Maulik Jasubhai Shah Hemant K. Shetty Hemant K. Shetty Mittravinda Ranjan (mittra_ranjan@jasubhai.com) D P Mishra, H K Krishnamurthy, N G Ashar, Prof M C Dwivedi Arun Parab, Shankar Joshi Dilip Parab V Raj Misquitta (Head), Arun Madye

FEATURES From Operation to Cessation of Production: Creating a Smooth Transition

PLACE OF PUBLICATION: Jasubhai Media Private Limited

SALES

How Managing Risk in the Oil & Gas Industry Can Prevent a Large-Scale Disaster

Unlock Critical Clues to Maximize Profitability in Refineries

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-Sandeep Mohan and Sunil Patil Concerns Over Rising U.S. Oil Production keep Oil Prices Down

- Niteen M Jain and Nazir Ahmed Moulvi

CASE STUDY Ship Propellers: Optimizing Power conversion

Strategies to Increase Safety and Optimise Cost in the Oil & Gas Industry

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Cover page image courtesy: Eduardo Hurtado, Regional S. Manager - LATAM, Fluenta Inc. Offshore World | 4 | April-May 2017

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INTERVIEW

Technology will be the key driver for the growth of lubricants across all industrial segments

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Offshore World | 6 | April-May 2017

The growth of manufacturing sector and automotive industry in India offers ample opportunities to lubricant manufacturers. Shell Lubricants is working on dimensions of technology, innovation, and application development, and is collaborating with OEMs to leverage on strong market potential in the Indian market. Siva Kasturi, Asia Pacific Regional OEM Manager, Shell Global Lubricants, shares his outlook on the emerging Indian market in an exclusive interview with Mittravinda Ranjan.

INTERVIEW According to media repor ts, lubricants market witnessed marginal decline in 2015, what is the current market situation and what are the key focus areas for Shell Lubricants? In my opinion there has not been any decline in the lubricants market. We have seen industries moving from conventional lubricants to specific high per formance hydrocarbon derived lubricants. In fact, we are experiencing a higher amount of growth which will continue in the near foreseeable future. Though challenges will be there, development will be driven by the growth of commercial vehicles in the automotive sector and power sector which are doing ver y well. We are highly focused on developing application-based lubricants and are looking at steady margins in both the sectors. What is the current valuation of global lubricants market and which segments is Shell focused on? The global lubricants industr y was valued at USD 50 billion in 2016, and is growing at CAGR 2.5 per cent, and we are expecting a growth of about USD 65 billion by 2021. India is the 3rd largest market for lubricants globally but as a countr y, we have the lowest per capita consumption of lubricants. Considering the size of the market and the changing consumption pattern, India is definitely a high potential consumer market for lubricants. Power utilities segment is one of our key focus areas where we offer total lubrication solutions for thermal, renewable and nuclear energy sec tors and work ver y closely with OEMs related to gearboxes, hydraulics and stationar y power engines. In the mining and construc tion segments we offer solutions to OEMs for gearboxes, compressor oils, compass fuels, hydraulic oils and greases. Shell Lubricants has been deeply co mmitted to its customers in terms of reliabilit y and qualit y of produc ts and has been witnessing a good growth momentum with respec t to its produc ts and ser vices. Industrial lubricants business has lower margins as compared to lubricants for automotive industr y. How does it become a value proposition for OEMs, especially from the small and medium scale segments? At Shell Lubricants, we appreciate that being competitive in the global manufacturing market means meeting deadlines and constantly striving to increase production, reduce downtime and maintain product quality. Choosing the right lubricants and the ser vices related to your needs can help to make a real difference to your entire operation. Lubricants are designed to increase productivity through enhanced efficiency, ex tended oil and equipment life through improved

efficiency. There can be different analogies for the value propositions of lubricants in different segments. We believe in working with our customers in an integrated way to provide them with holistic solutions across industr y value chains. Technology is making a lot of difference across the application of various products. Our OEMs are inclined towards the culture of our company due to the ex tensive research we put in our offerings to provide all the industr y compliance related specifications required by our patrons. One such example is automotive industr y which is now quickly working towards complying with BS VI norms, and the end-consumers as well as OEMs have become ver y selective about the selection of lubricants. At Shell, we run ex tensive R&D programs which also include enabling OEMs to become more competitive in their respective areas by offering technical suppor t and encourage them to work on value proposition models for their end consumers. Our technical team works ver y closely with the product planning for our lubricants factor y to provide reliable solutions to the end users. There is a continuous mutual cooperation bet ween OEMs and Shell through long term sustainable par tnerships programs like Shell LubeExper ts and Shell LubeAdvisor to name a few, which have been designed specially to provide technical suppor t to our OEMs. These programs provide great value to OEMs who are our customers and are expec ted to comply with the standards and specifications required by their end users. How is Shell Lubricants helping the industr y cater to the technical ser vices in delivering energy efficienc y and how Shell collaborates with OEMs to deliver technology-driven solutions? G lobally we work closely with many OEMs and we have more than 5000 OEM approvals. We aspire to build long term par tnerships with OEMs and drive their profitabilit y through our most effec tive solutions. Technology Leadership is a key lever for growth for Shell Lubricants. O ur OEM par tners and customers want to know that we understand and respond to industr y trends and that we have leading produc ts and technical ser vices that bring value to their businesses, both now and in the future. D riven by our technology, our aspiration is to be recognised as the undisputed leader in the Lubricants industr y. For Shell Lubricants, Technology Leadership means excelling in three key areas Innovation, Application, and Par tnership - to bring value to our OEM par tners and customers.

Offshore World | 7 | April-May 2017

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INTERVIEW Innovation of new products and ser vices, Application of products and ser vices which add value to OEMs and customers, and Par tnership with key industrial and B2B OEMs, Industr y bodies and academic institutions are the pillars of our business. We have developed strong exper tise in offering industrial solutions for gearboxes, turbines, wind applications and construction. We talk about the application based products that can be recommended by our OEMs to their customers to develop reliable products. OEMs are ver y much capable in product design and offering technology solutions to their customers. Collaborating with the OEMS helps us in understanding the changing needs of their customers and identifying niche areas where we can innovate and eventually develop applications. These applications are eventually expected to offer a longer value proposition to the end-consumer. Reliability is the mantra that we live by and continuously engage with our par tners through technology workshops, seminars and webinars to update them on new technologies. In lieu of sharp decline in oil prices, the Indian Government has cut down the fuel costs. Do you see such kind of move by the Government on the lubricants business as well? Unlike commodity mainstream oil products, whose prices are closely correlated with movement of crude oil prices, base oil prices and lubricant are ver y less affected by crude oil price movements, nor these changes reflected immediately. In my view, crude pricing will cer tainly have a minimal impac t and not direc t impac t on the lubricants business, the reason being, that among several crude oil derivatives, we use the lube oil. The prices of lubricants are also different from that of b ase oil because it is not just about lubricants, there are many other ingredients / additives that i t comprises. It is not mandator y that if price of crude falls, then the price of base oil will also fall. B ut looking at the larger pic ture, price fall can only be one of the fac tors that can affec t the price of lubricants and not the only fac tor.

share in India is at about 5 percent. However, the range of our market share varies across the sectors we play in. For example, in wind sector we enjoy a market share of about 48 percent. Therefore, it is highly dependent on the markets Shell Lubricants chooses to operate in, and where our strengths lie. Globally, our market share stands at 11.6%. Technology will continue to be the key driver for growth of lubricants across all the industrial segments. In R&D space, we are constantly enhancing our capabilities in developing advanced lubricants that will significantly reduce the overall operational costs for the end consumers. Temperature at which lubricants operate and contamination levels are the deciding fac tors for per formance of lubricants, which need to be considered while developing application specific produc ts, and our research teams constantly work on improving per formance of our existing produc ts and developing new applications. We are committed on working more closely with our OEM par tners and customers to enhance their experience and fur ther add value propositions. In the nex t three years, we intend to significantly expand our produc t por tfolio and increase our ma rket share in the domestic market, while working in tandem with our OEMs. As par t of Shell Lubricantsâ&#x20AC;&#x2122; commitment to developing superior lubrication solutions, we work closely with our OEM par tners to develop products to suit their future needs. This in turn broadens our understanding of future operational and equipment challenges, to provide technology solutions in developing advanced oils, which help customers get a competitive edge.

What are the plans of Shell Lubricants in Indian market in the near foreseeable future? Shell Lubricants is amongst the frontrunners in the lubricants market globally and aims to be the largest international player in India. India is one of the largest markets with huge potential for automotive and industrial lubricants. At present, we have a large manufacturing facility located in Taloja near Mumbai and our aggregated total market www.oswindia.com

Offshore World | 8 | April-May 2017

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FEATURES

From Operat ion t o C es s a t i o n o f P ro du c t i o n: Cre ating a S moot h Tra n s i t i o n The global oil and gas industr y is in unchar tered waters, with challenges including low oil price, high operating costs and ageing assets rivalling its pioneering produc tion days half a centur y ago. There is no denying the sheer scale of the issue. The challenge on the horizon is significant: decommissioning will be expensive and span several decades. More than half of the assets in Malaysian waters are more than 20 years old. Operators in this region have faced a decommissioning backlog. Only an estimated 95 platforms having been decommissioned since 1975, attributed to a lack of clear and specific regulations from national authorities. In comparison, The Gulf of Mexico dominates global decommissioning ac tivity, with an estimated 4,600 offshore facilities decommissioned to date. So what is the solution from operation to cessation of produc tion and how do you best go about it?

he global oil and gas industr y is in unchar tered waters, with

Continental Shelf (UKCS) for example, the industr y is now plugging and

waters are more than 20 years old. [3] Operators in this region have faced a decommissioning backlog. Only an estimated 95 platforms having been decommissioned since 1975, attributed to a lack of clear and specific regulations from national authorities. In comparison, The Gulf of Mexico dominates global decommissioning activity, with an estimated 4,600 offshore facilities decommissioned to date. [4]

abandoning more wells than it is drilling for exploration and appraisal. According to McKinsey & Company, 27 UK fields ceased produc tion

L i fe b e fo r e d e c o m m i s s i o n i n g

over the past five years to 2015, with a third of them approaching the

What to do in late -field life is equally as pressing as decommissioning,

regulator for approval to decommission. The number of wells plugged

and as wor thy of the headlines. Following on from the key

and abandoned in the UK more than tripled in the past three years.

re c o m m e n d a t i o n s i n t h e U KC S M a x i m i s i n g R e c o ve r y R e v i e w, l e d

challenges including low oil price, high operating costs and ageing assets rivalling its pioneering production days half a century ago.

D e co m m i s s i o n i n g i s n e ve r f a r f ro m t h e h e a d l i n e s. Ac ro s s t h e U K

[1]

by Sir Ian Wood for national government, the OGA has set out its Based on current crude oil prices, analyticsâ&#x20AC;&#x2122; consultancy Wood Mackenzie

strategy to collaborate with industr y to Maximise Economic Recover y

sees a ramp up of decommissioning activities up to the early 2020s that

(MER). Moving to late -field life is a tough decision to take for any

is perhaps greater than ever previously forecast.

operator, but it can mean more than entering â&#x20AC;&#x2DC;lighthouse modeâ&#x20AC;&#x2122; to

[2]

delay decommissioning liabilities. Radically leaner models of working, Estimates are exactly that, but there is no denying the sheer scale of

coupled with rigorous asset management, will help at a stage that

the issue. The challenge on the horizon is significant: decommissioning

demands a relentless focus on produc tion optimisation, operational

will be expensive and span several decades. And, added to this is a

efficienc y and cost reduc tion.

significant factor where infrastructure integrated and shared between installations can increase the complexity of decommissioning.

Getting these factors right are fundamental if the industr y is to unlock the remaining potential, safely and profitably. Production gains of assets

I n t e r n a t i o n a l l y, n e w r u l e s a r e b e i n g i n t r o d u c e d t o a c c e l e r a t e decommissioning activity. More than half of the assets in Malaysian www.oswindia.com

at late life are potentially considerable. The Wood Review estimates there are between 12 and 24 billion barrels of oil yet to be recovered

Offshore World | 10 | April-May 2017

FEATURES from the Nor th Sea. The oppor tunit y to generate significant value

can be reduced significantly, with personnel redeployed to greater use

is echoed by McKinsey & Company, par ticularly over the nex t t wo

elsewhere. At the same time, data can be gathered that is required for

decades. The firm puts the case for excellence in this transformative

CoP and, in turn, decommissioning. Such an outsourcing approach is

phase, highlighting that few companies as yet have truly positioned

relatively novel and a bold strategic step for an operator and their joint

themselves to capture this value.

venture par tners. Getting the handover right for a smooth transition

[5]

is critical, ensuring operations are safe while maximising profitability. If the industr y is able to exploit the most optimum ways to increase the level of hydrocarbons that are economically recoverable, it can concentrate on value generating ac tivities. Few would argue that spending capital unnecessarily on decommissioning is better. R e a s s e s s i n g w h a t i s r e q u i r e d i n l a t e - f i e l d l i fe G i v e n t h e c h a l l e n g i n g m a r ke t c o n d i t i o n s , t h e n e e d t o i m p ro v e

How is this best achieved? And what competitive edge is possible when pushing the potential of such a model? Setting the agenda •

A l a t e - f i e l d o u t s o u rc i n g a p p ro a c h s h o u l d f o c u s o n s i x c o re objectives:

•

Zero accidents and no harm to the environment

operational efficiency and performance escalates in later life, to a point

•

A cash flow positive position in the current marketplace

where ever y possible advantage matters. Activities that fail to deliver

•

A competitive unit operating cost

commercially or ensure safety standards are met, have to be eliminated.

•

Ex tended field life where possible, deferring CoP and delaying decommissioning liabilities

The challenges are complex during this phase, but the equation is

•

Preparing for CoP, while managing late -life assets

simple: the leaner operations can become, the longer the length of

•

Optimising well and reser voir per formance.

profitable produc tion. R eassessing requirements in late -field life shows where costs can be drastically reduced to remain profitable.

Running it down: a period of continuous

What is impor tant at the beginning of a field’s life changes as it

i m p r o ve m e n t

reaches maturit y.

For as long as there is life in a field, the goal must be operations excellence. An outsourcing approach should be able to move quickly

Initial effor ts focus on maximising hydrocarbon recover y through

and efficiently from providing the essential ser vice an operator requires

long-term development plans. There are numerous technical tasks

to managing the assets through continual improvement. Superior asset

to p e r f o r m . D e d i cate d te c h n i ca l s p e c i a l i s t s u n d e r t a ke s t u d i e s i n

per formance and technically excellent subsur face operations pre CoP

a re a s t h at i n c l u d e s e i s m i c i nte r p re t at i o n , g e o l o g i c a l m o d e l l i n g,

can star t to be realised once the significant risks are identified and

petrophysical evaluation, reser voir modelling, well modelling, system

mitigated and the operator’s basic requirements, including compliance

modelling, and produc tion optimisation.

demands, are being met.

At the end of a field’s life, par ticularly when approaching CoP, the

G e t t i n g t h e f r a m e wo r k r i g h t

management of day-to-day production and operations takes precedence.

Handover of late-field life management should involve five main stages

With remaining oppor tunities available, but perhaps not economically

or sets of activities.

feasible to execute, many of the geoscience and reser voir engineering tasks become less valuable or simply not required.

1 . Pr o j e c t f r a m i n g a n d r e v i e w Close collaboration with the client’s asset and operations teams is

Outsourcing to lighten the burden

critical, gaining a total understanding of the planned scope of work,

The approach to outsource the full running of late -life assets offers

overall objectives during the transition period and the operator’s way

a n u m b e r o f a dva nt a g e s, w i t h o u t d e t ra c t i n g f ro m t h e o p e rato r ’s

of working, with special emphasis on aligned HSE cultures. Governance

responsibilities for the assets approaching CoP. Fields can be optimised

structure, accountabilities, repor ting interfaces, deliverables, timelines

until abandonment, with minimum capital expenditure. Operating costs

and IT requirements should all be covered off.

Offshore World | 11 | April-May 2017

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FEATURES

FEATURES 2 . Ac c e s s t o d a t a a n d s ys t e m s

team comprising a dedicated project manager, reser voir engineer and

Effective transition is only possible with the operator’s systems to hand.

production and operations engineer. These specialists will be suppor ted

IT solutions are readily available to provide the specialist contractor with

by other subsur face discipline exper ts on an ad hoc basis.

remote access to key information. This includes real-time production and injection well data, process and operations data, as well as the operator’s systems such as loss management, dashboards and intranet

B e i n g p r o d u c t i ve, w h i l e p r e p a r i n g fo r Co P

document management.

in traditional levels of personnel, a range of activities can be

While the outsourcing approach represents around a 50% reduc tion per formed by this small resource, including gathe ring data for the

3 . K n o w l e d g e t r a n s fe r Prior to handover, the full range of petroleum and reser voir engineering activities needs to be discussed through visits, meetings and in-depth reviews. Close cooperation is required on a daily, weekly, monthly, quar terly, annual and ad hoc basis to cover the range of requirements and responsibilities. 4. Management of meetings It is impor tant to agree, refine and schedule the full inventor y of meetings, with appropriate terms of reference. Meetings should involve both internal and ex ternal stakeholders, including joint venture partners and regulatory bodies, where applicable. 5. Quality control, peer review and project management In this final step, the transition plan is completed and agreed. Details

f i n a l we l l a n d re s e r vo i r s t at u s. I n d e e d, a m i d s t a l o t o f i n d u s t r y uncer taint y, one point is clear: late -life asset management should form par t of the roadmap to CoP. A specialist team is both focused a n d i n t h e i d e a l p o s i t i o n to co l l ate a l l t h e i n f o r m at i o n re q u i re d f o r d e c o m m i s s i o n i n g p l a n s a n d t h e Co P d o c u m e n t s re q u i re d b y the regulator y authorities. This also applies to preparing the CoP A p p l i c a t i o n D o c u m e n t i t s e l f. I n a d d i t i o n , t h e ke y t a s k s c a n b e transferred, such as reser ves’ booking, shor t and long-term forecasts, re v i s i t i n g o p p o r t u n i t i e s f o r f i n a l c l o s e - o u t a n d o t h e r f o r m s o f re p o r t i n g, w h i c h a re u n i q u e to e a c h p ro j e c t. Fi e l d o p t i m i s a t i o n may also lead to fur ther operating savings, enabling the pre -CoP te a m to b e re d u ce d, w h i l e s t i l l d e l i ve ri n g t h e n e ce s s a r y l e ve l o f specialist ser vices. Te a s i n g o u t a d d i t i o n a l v a l u e Choosing the right specialist provider enables an operator to tap into a spec trum of skills required in the process of managing mature

on the peer reviews and quality control of the contracted ser vice should

fields, up to and including CoP, par ticularly field optimisation. An

be finalised. As a guide to timeframes, full management can be handed

understanding of the full subsur face and produc tion management

over by the operator to a specialist external team within a four-month,

requirements, together with exper tise in areas such as the

fully collaborative transition period.

management of wells and facilities, can give an operator, as well

[6]

Te c h ni ca l l y fe a s i b l e de co m m i s s ioni ng op ti ons for f i el ds have to b e s tudied an d s u bje c te d to fo rm a l co m p a ra ti ve a s s es s ments (C A ) , us ing the c ri teria of safet y, e nvi ronm e nta l, te chni ca l, s o c i eta l a nd economi c. Rethinking the headcount; redeploying personnel With fields no longer delivering at peak capacity, outsourcing enables

as the regulator, a valuable view. This will help assure that Maximum Economic Recovery (MER) is being delivered. • Each field is unique. Below are some examples of the results possible: •

Streamlining the management of reser voir and subsea pipeline network by reviewing the efficiency of water injection and ‘backout’ in the subsea pipeline network.

•

also with an eye to the next oppor tunity – are also negated. Subsurface

Using all the available data – recent seismic, well-test, interwell connec tivit y and seawater composition data – to minimise

and production management can be successfully achieved with a pre-CoP

deferred produc tion.

redeployment of subsurface teams, and expensive technical and scientific equipment, to more valuable and strategic assets. Concerns about losing valuable resources – hired directly as the project approaches CoP, but

www.oswindia.com

Offshore World | 12 | April-May 2017

FEATURES •

Exploring a range of options for improving oil rate and recover y by

operational approach that does not compromise on safety and integrity

per forming water shut- off using either thermally- or chemically-

standards. The advantages are significant with the right models, helping

activated polymers at either or both injector or production wells.

create a smooth transition to cessation of production.

Co n s i d e r i n g b o t h t re at m e nt s f o r d e p l o y m e nt v i a t h e s u b s e a

•

manifolds, rather than by direc t well inter vention, can reduce

References:

cost and risk.

•

O i l & G a s J o u r n a l, J u n e 2 0 1 6 : h t t p: / / w w w. o g j. co m / a r t i c l e s /

for the entire wellbore.

p r i n t / v o l u m e - 1 1 4 / i s s u e - 6 / g e n e ra l - i n t e re s t / w o o d m a c - u k c s -

Maintaining stable operations by addressing the effect caused by

decommissioning-to-ramp-up-over-next-5-years.html

slugging and gas deficiency to wells and process facilities that •

late-life-operations-to-decommissioning

Using a cement assurance assessment for safe, cost-effective well abandonment not just for an inter val above a main reser voir, but

http://www.mckinsey.com/industries/oil-and-gas/our-insights/from-

Regulators reveal plans to spark first wave of decom in Asia, Dec 2012,

were designed for higher production rates.

DecomWorld. See: http://analysis.decomworld.com/regulation-and-

Ta c k l i n g t h e co m m o n p ro b l e m i n l ate l i f e o f u n re l i a b l e rate

policy/regulators-reveal-plansspark-first-wave-decom-asia

measurements, especially of water and oil that are crucial to

EIC Insight Report, Upstream, May 2016

optimising production. Here, traditional modelling tools become

http://www.mckinsey.com/industries/oil-and-gas/our-insights/from-

less effective. Greater outcomes can be achieved through closely monitoring the performance of wells and process facilities, running

late-life-operations-to-decommissioning 6.

Based on an LR project for a major operator in the Central North Sea,

optimisation exercises, maintaining updated well and net work

taking over the full technical and operational reservoir and production

models and educating all personnel to operate in a dynamic

management of two subsea fields.

scenario, where process settings may have to be adjusted daily. Co P fe a s i b i l i t y W h e n i t i s t i m e to m o ve t o Co P, we i g h i n g u p t h e p ro s a n d c o n s o f d e c o m m i s s i o n i n g o p t i o n s i s ke y t o a p p l i c a t i o n a c c e p t a n c e f ro m t h e re g u l a t o r. Te c h n i c a l l y f e a s i b l e d e c o m m i s s i o n i n g o p t i o n s f o r fields have to be studied and subjected to formal comparative a s s e s s m e n t s (C A ) , u s i n g t h e c r i t e r i a o f s a f e t y, e n v i ro n m e n t a l , te c h n i c a l, s o c i e t a l a n d e c o n o mic. This, often arduous, stage requires the identification of assessment scales and weighted scores, that ultimately form recommendations to the regulator y authority of viable decommissioning approaches in determining the optimal approach. Lessons learned across the world from the UKCS, Southern Nor th Sea and Irish Sea to the Gulf of Mexico and Asia will prove invaluable in managing these maturing oil and gas regions. For many operators,

Celeste Pastorini

outsourcing the full running of assets approaching CoP, prioritising

Produc tion Engineer - Energy

both resources and inspection plans, and eliminating non value adding

Lloyd’s Register

activities, will become the logical conclusion to one of the greatest priorities late-life asset management presents: adopting a cost-effective Offshore World | 13 | April-May 2017

www.oswindia.com

FEATURES

How M anaging Risk i n t h e Oi l & G a s I n du s t r y Ca n Prevent a Large- S c a l e Di s a s t er The US Bureau of Labor Statistics suggests more than half a million of the US population work in the Oil & Gas Industr y â&#x20AC;&#x201C; with the number of global workers estimated between five and six million. The nature of working with hazardous materials in hostile environments means oil and gas workers are often exposed to dangerous conditions. How can oil and gas companies ensure they are fulfilling duty of care by protec ting the welfare of their employees? In this ar ticle, Lana Ginns, Marketing Manager at Fluenta, discusses how managing risks through continuous asset monitoring and connec ted technologies can highlight equipment failures and operational issues before they contribute to disaster.

elivering effective risk management has never been easy in the

from the well expanded into the drilling riser and rose into the drilling

Oil & Gas Industr y. The penalties for failure - in terms of impact

rig, where it ignited and exploded, engulfing the platform. 126 crew

on people, environment, reputation and finances - are ex treme.

members were on board: seven BP employees, 79 from Transocean and

Though many oil and gas companies are taking responsible steps to

employees of various other companies. Despite a three day US Coast

eradicate possible dangers, reducing risk must be at the centre of all new

Guard search, eleven missing workers were never found. The Deepwater

projects going for ward. New technology and an increased awareness of

Horizon sank on the morning of 22 April 2010. Considered the largest

safety must be the driving force behind operational reform.

accidental marine oil spill in the histor y of the petroleum industr y, the US Government estimated the total discharge at 4.9 million barrels.

High risk, high pressure Price volatility has been a major concern for the sector, with increasing

There are many potential causes of such an accident, including the sudden

costs of ex traction and the frequency of political events that affect oil

release of gas under pressure or the introduction of an ignition source

prices. While competition from alternative energy sources and new

into an explosive or flammable environment. The Hydrocarbon Releases

technologies has remained limited, the Oil & Gas Industr y is continuing

(HCRs) that cause explosions like these are, in simple terms, leaks.

to contend with fluc tuations in demand. Politics may also add to strategic challenges. Access to reser ves, risk of nationalisation and a shift in the regulator y climate can be costly for the industr y. Regulator y compliance has also exacerbated operational and financial challenges. As safet y regulations and environmental guidelines are tightened, the oil and gas sector is pressured to add substantial investments to ensure compliance. However, for oil and gas workers operating in less than hospitable environments, this is the where the biggest risk lies.

Leaks will inevitably happen during operations, and while significant efforts are being made to reduce HCRs, innovations in remote monitoring technology can still be fur ther exploited to reduce risk. The recent Step Change in Safety campaign was suppor ted by stakeholders in the UK offshore industr y and demonstrated what could be achieved by increasing focus on safety procedures. In 2010 the total number of HCRs was 187. The Step Change in Safety campaign aimed to reduce this by 50% over a three year period. Whilst the campaign fell shor t â&#x20AC;&#x201C; reducing

Safety first

the number of leaks by 49% - the approach demonstrated what was

Although rare, there is a risk of on-site explosions in the Oil & Gas

possible when more attention is given to on-site safety. Following an

Industr y. The Deepwater Horizon oil spill (also referred to as the BP

investigation into the Deepwater Horizon disaster, it was discovered

oil spill) began on April 20, 2010, in the Gulf of Mexico on the BP-

that a number of asset failures had contributed to the explosion and a

operated Macondo Prospect. At approximately 9:45 pm, methane gas

dangerous HCR had not been detected.

www.oswindia.com

Offshore World | 14 | April-May 2017

FEATURES

Hostile working environments

possible by helicopter. However, new connected technologies can help

Monitoring potentially explosive environments for the presence of

counteract the effect of hostile environments and identify or deal with

flammable vapours is an important health and safety practice and should

potential issues before they become a catalyst for disaster.

be suppor ted by the use of accurate measuring equipment. Historically, equipment checks were the responsibility of on-site personnel. This

In late 2015 a fire aboard a rig in the Caspian Sea resulted in the deaths

meant placing a human being into a potentially dangerous environment.

of a number of oil and gas workers. This was caused by a gas pipeline

D u e to t h e n at u re o f f o s s i l f u e l l o c at i o n a n d e x t ra c t i o n , c r i t i c a l infrastructure for the Oil & Gas Industr y is often located in remote environments: in the middle of the ocean or in ex treme heat or cold. The Deepwater Horizon oil rig was a semi-submersible, mobile, floating,

that was damaged in high winds. By recording critical data to the cloud, companies can understand the impact of ex treme weather on oil rigs and implement procedures to reduce the risk of an incident occurring again. Had the owners of the rig been more aware of the likelihood of such an incident happening, the site could have been evacuated earlier.

drilling rig that operated in waters up to 10,000 feet deep. Sea water

Connecting technology and separating risk

could impact asset per formance, under water debris could affect flow

Cloud technology and the availabilit y of internet connec tivit y now

and cold deep-water temperatures could freeze equipment. Monitoring

enables remote asset management. Cloud infrastruc ture is able to

assets in hostile environments is crucial for risk reduction, but these

suppor t the constant monitoring and storage of data on remote ser vers

punishing conditions can mean maintenance is a dangerous task.

any where in the world in real time via IoT. Monitoring equipment installed on local assets transmits information to software that is stored

The management of plants located in dangerous and ex treme

on central ser vers, rather than physically on an oil and gas site. If an

e nv i ro n m e nt s i s t ra d i t i o n a l l y p ro v i d e d b y a l a rg e a n d ex p e n s i ve

asset is malfunctioning â&#x20AC;&#x201C; or is about to do so â&#x20AC;&#x201C; oil and gas companies

workforce. A Nor th Sea oil rig will typically station between 50 and

will be aler ted. When this real-time data is fed into software such as

100 permanent staff on board - each working 12 hour shifts. Should an

a continuous emission monitoring system (CEMS), organisations can

incident such as an explosion occur, access to deep water rigs is only

then collect, record and repor t data remotely.

Offshore World | 15 | April-May 2017

www.oswindia.com

FEATURES

With internet connectivity available almost anywhere, businesses can

equipment in dangerous environments. IoT and cloud technologies

access the CEMS data feeds of remote assets from multiple sites around

empower oil and gas companies to pre - empt an incident before it

the world. It is not necessary to store and run the software on a machine on-site, which removes the need for on-site staff. Additionally, the data is stored securely on multiple remote ser vers with back up and

occurs, significantly reducing human risk. Future considerations for

is not dependent on the health and reliability of an on-site machine.

reality and augmented reality to train staff. Using simulators - similar

reducing risk also focus on improving personnel training. The industr y is in discussions to use new visualisation technologies such as vir tual to those used in the airline industr y - can expose workers to a range of

I f co m p a n i e s d o n o t c u rre nt ly h ave te c h n o l o g y to f u l ly a u to m ate

hazards and scenarios, which they cannot normally be trained to react

an installation - or if they are not positioned to deploy Ar tificial

to. Similarly, drilling rigs are becoming more and more automated.

Intelligence (AI) at this time - star ting to collect relevant information

Automation will eventually reduce the number of employees needed at

now will enable more sophisticated decision making for the future.

a drill site, and overall safety rates can be improved. Mitigating risk in the Oil & Gas Industr y and preparing personnel could be the difference

The remote measurement and testing of assets can almost eliminate

between a well-managed oil rig and a large scale disaster.

human risk. With continuous measurement, operators can discover leaks through a process called mass balancing. By accounting for material entering and leaving pipes, mass flows can be identified which might have been unknown, or previously difficult to measure. For example, operators can use mass balancing to identify faulty valves within their pipe systems that may be causing dangerous leaks. Remote action can be taken to update software, shut down failing or faulty systems, and if there is a danger of explosion, extract on-site personnel immediately. Lana Ginns By implementing connec ted technologies the Oil & Gas Industr y is

Marketing Manager

mitigating risk and reducing the threat of a large scale oil and gas

Fluenta

disaster. Through cloud technology oil and gas companies can remotely

Email: lana@fluenta.com

manage assets and reduce the number of personnel having to maintain www.oswindia.com

Offshore World | 16 | April-May 2017

PRESENTING ARC’S FIFTEENTH INDIA FORUM

Industry in Transition: Realizing the Digital Enterprise J U LY 6 - 7 , 2 0 1 7 • B A N G A L O R E

FEATURED TOPICS: Industrial companies are revisiting their own business processes and technology approaches as competitors and partners start to employ “digitalized” business processes and exploit the increasing convergence between operational technology (OT) and information H97<BC@C;M ( CB H<9 D@5BH ÈCCF (FIGH98 H97<BC@C;M J9B8CFG 5F9 moving from Industrial Internet of Things (IIoT) concepts to real IIoT products, solutions, and services. Intelligent connected products, along with network communications, software, and analytics now enable manufacturers to improve uptime and optimize operating performance. Other hot topics such as cognitive computing, machine

IMPROVING ENERGY EFFICIENCY ADVANCED CONTROL STRATEGIES SMART GRID AND SMART CITIES COLLABORATION AT THE USER AND DEVICE LEVELS MANAGING LEGACY AND AGING INFRASTRUCTURES

@95FB=B; 5B8 5FH=Ç7=5@ =BH9@@=;9B79 DCK9F AI7< C: H<=G HF5BG:CFA5H=CB

3D TRAINING AND SIMULATION

(<9 =;=H5@ BH9FDF=G9 69B9ÇHG :FCA GA5FH9F DFC8I7HG B9K G9FJ=79 5B8

SOCIAL MEDIA

operating models, new production techniques, and new approaches to design and sourcing.

ADVANCED ANALYTICS AND BIG DATA

ARC Advisory Group’s Fifteenth India Forum for process and discrete

CLOUD COMPUTING

industries is a not-to-be-missed event for all stakeholders – technology

IMPACTS OF MOBILE COMPUTING

solution providers, end users, industry trackers, decision and policy makers, and the media. In an advanced automation and informationdriven world, terms such as Industrial Internet of Things (IIoT), Smart Manufacturing, Industrie 4.0, Digitalization, and Connected Enterprise, are clearly moving past the hype stage to the point where real solutions are emerging backed by strong associated business cases. This is the new age of innovation. TO REGISTER: Space Is Limited! Call India +91-80-2554-7114 or USA +1-781-471-1000, Register on-line at www.arcweb.com/events/arc-industry-forum-india/, or e-mail ramang@arcweb.com.

V ISION , E XPERIENCE , A NSWERS

FOR I NDUSTRY

ENTERPRISE AND PLANT ASSET MANAGEMENT SUPPLY CHAIN MANAGEMENT INCLUDING SERVICE LIFECYCLE MANAGEMENT CYBERSECURITY AND SAFETY

FEATURES

Un l ock C ritical C l u es t o Ma x i mi ze P ro f i t ab il it y i n Ref ineries.

n this industrial game of Cluedo to maximize profits, refiners need to

for process simulation and rigorous heat exchanger modeling, a seamless

leverage the best innovation can offer. This is crucial in the volatile

integration between the process simulator, heat exchanger design and

economy today, as profits can be razor thin. Owner operators need

rating tools is required. Process engineers can now effor tlessly develop

to adopt process simulation software to mitigate relentless business co m p l ex i t y â&#x20AC;&#x201C; d ri ve n p re d o m i n a nt ly by a cce l e rate d g l o b a l i z at i o n , increased market volatility and the latest legislation. To stay ahead of the competition, refineries need to achieve operational excellence in areas, such

and integrate rigorous simulation of heat exchanger operation, as par t of the refiner y flowsheet. HPCLâ&#x20AC;&#x2122;s refiner y in Mumbai, India, has saved time and money (over $250K annually), while improving their

as operational troubleshooting, crude selection, refinery planning, profit

heat exchanger maintenance schedule. The INEOS refiner y in Lavera,

margin analysis, turnaround planning and more. To embark on this journey,

France, saved $4 million annually by employing a heat exchanger

refiners need to unlock critical clues to profitability.

fouling monitoring application.

Figure: Refineries need to be mindful in considering the level of maturity at their companies First clue: Heat Exchanger Maintenance and Monitoring

Second clue: Column Operations Troubleshooting

Heat exchangers are crucial to determining energy efficiency levels.

With advanced process simulation software, users can accurately simulate

Refiners need to know when is the best time to take them out for

the thermo-hydraulic functioning of columns based on their construction

maintenance and minimize the impact on profitability. Separately, the

a nd operating conditions. This he l ps them bette r unders tand the

rigorous simulation of the heat exchanger unit operations helps determine

behavior of columns and avoid operational mishaps. By simulating the operation of the column unit within the broader setting of the overall process, users can identify the root causes of their column problems and figure out the optimal point of operation for the overall process unit. In addition, visualization tools provide insight into the operating point of the column and highlight any impending breach of operational limits,

the level of fouling in each unit and its resulting economic impact. This helps refineries set up prioritized maintenance schedule for their heat exchanger networks. To overcome the challenge of using disparate tools www.oswindia.com

Offshore World | 18 | April-May 2017

FEATURES Fourth clue: Planning Model Update To manage their operations, refineries use planning tools to make better informed decisions. While traditional linear programming (LP) models are employed by these planning tools to find the most optimal plan, they are only accurate within a specific operating range of the refinery. Overtime, refineries move away from the operating range – for example, it can happen due to catalyst deactivation or other operational changes. This means that LP models become outdated, which reduces the effectiveness of the planning tools, which adds up to millions of dollars in lost profits. The solution is to maintain the planning models, with the help of advanced process simulation software. This enables updates when the models are out of sync with the operating range of the refinery. Process simulation software is key to this solution, providing the predictive capability that comes with rigorous process analysis based on reaction kinetics, heat and mass balance. Today, leading solution providers have built-in integration Figure: To embark on this journey to maximize profits, refineries need to unlock critical clues to profitability.

between process simulation and refiner y planning to streamline the workflow of updating planning models. With these advanced tools, refiners can now follow the workflow without depending on external

which causes issues – such as jet flooding, weeping, down-comer backup

consultants. Taiyo Oil in Japan has reported a 12.7% increase in their

and others. This allows refineries to build a work culture of continual

refineries’ profit from maintaining their refinery planning and scheduling

process optimization and preventive maintenance by taking advantage

tools using advanced process simulation solutions. This capability puts

of advanced process simulation technology.

in place a culture of true par tnership between planners and process engineers in maintaining planning and scheduling tools to maximize and

Third clue: Integrated Refining and Gas Plant Analysis

sustain refinery profits.

In using integrated solutions, engineers can create a rigorous simulation of refining and gas plant operations within a single simulation environment.

Fifth clue: Refiner y Wide Process Analysis – The

This allows refinery operators to assess, if they can accommodate increased

Pinnacle of Technological Maturity

levels of sour crudes in their refineries.

Refineries can develop a refinery-wide process model from their refinerywide planning model relatively quickly with an advanced integrated

It also allows them to preemptively adjust operations in the gas

solution for process simulation and refinery planning. The accuracy of the

plants and suit new crude processing. By enabling feed flexibilit y,

simulation model is enhanced by selectively incorporating rigorous models

capacit y creep and OPEX optimization via integrated refining and gas

of reactor units to the refinery-wide flowsheet. With this methodology,

plant process simulation, refiners save millions of dollars each year in

users can have full control over the rigor and flexibility of the model.

operating margins. They are also ensured of maximum reliabilit y and

With this solution, refineries can use the model to accurately assess the

plant on-stream time. The rigorous simulation of gas plant operations

economic impact of possible strategic reconfiguration projects. It also

offers refineries the visibilit y and abilit y to better document their

supports planners dealing with special cases that require a more accurate

emission levels.

profit assessment versus what is projected by their LP tools. The model can

B y c h o o s i n g a te c h n o l o g y p a r t n e r w i t h t h e a b i l i t y to p re s e n t a co m p re h e n s i ve e n d - to e n d s o l u t i o n p l a t f o r m , re f i n e r i e s ca n a c h i e ve wo r l d - c l a s s o p e ra t i o n a l e f f i c i e n c y w i t h o u t d e p e n d i n g o n e x p e n s i ve co n s u l t a n t s . Offshore World | 19 | April-May 2017

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FEATURES

Figure: By systematically unlocking clues to increased profitability, Sherlock Holmes is literally left behind in this industrial game of Cluedo. be used for rigorous profit-margin analysis when evaluating strategic

consultants. With these tools, refiner y process engineers can develop

reconfiguration options or operational improvements to the refinery. This

their skill sets and process knowledge to become world- class

becomes a handy tool in evaluating responses to unexpected operational

engineers. Indeed, by systematically unlocking clues to increased

events, as well as to determine turnaround and star tup plans.

profitability, Sherlock Holmes is literally left behind in this industrial game of Cluedo.

Beating Sherlock Holmes at his own game Refineries need to be mindful in considering the level of maturity at their companies. Maturity levels range from zero to full maturity. At zero maturity, a refiner y does not have the culture of using process

Sandeep Mohan

simulation technology to suppor t their operations. At full maturity,

Produc t Marketing

refineries employ refiner y-wide process simulation models in a single flowsheet, which enables process engineers to suppor t the refiner y in

AspenTech Email: Sandeep.R amMohan@aspentech.com

strategic and operational decision making. An inevitable element of this journey is for employees to be skilled

Sunil Patil

in the latest technology and kept updated of industr y best practices.

Business Consulting Director

B y c h o o s i n g a t e c h n o l o g y p a r t n e r w i t h t h e a b i l i t y t o p re s e n t a

AspenTech

comprehensive end-to- end solution platform, refineries can achieve

Email: Sunil.Patil@aspentech.com

world- class operational efficienc y without depending on expensive www.oswindia.com

Offshore World | 20 | April-May 2017

NEXT ISSUE FOCUS: ADDRESSING THE FUTURE CHALLENGES The June-July 2017 issue of Offshore World will be focused on “Leveraging Digitization & IIoT for Hydrocarbon Industr y.” The digital technologies are helping oil and gas industr y to discover new measures to drive increased efficiency. Some of the technology trends that the forthcoming issue will cover are•

Drone technology to improve safety in the oil • and gas industry by removing the need for workers to operate in high-risk environments

•

Cognitive systems and machine learning allow decisions to be made automatically, with the help of complex algorithms that can interpret large volumes of data

Data analytics to provide a systematic way to make sense of the large volumes of data being collected across the entire oil and gas value chain

• Industrial Internet of Things (IIoT) to enhance operational efficiency

Investments in Digital Technologies

For editorial submission in Offshore World, please contact: Nidhi Agrawal- Sub- Editor, Offshore World, Email: nidhi_agrawal@jasubhai.com

www.oswindia.com

FEATURES

Concerns Over Rising U.S. Oil Production Keep Oil Prices Down Energy column (price review): March - April 2017

In the t wo -month period of March-April 2017, worries that growing U.S. crude produc tion may undermine OPEC’s effor ts to contain global oil supply pushed MC X crude oil futures prices down. However, volatile geo political situation especially first half of April denied a major fall in oil prices. On the other hand, MC X natural gas futures prices rose in the t wo -month period.

Two-month high - Early in the period

Brief respite to falling oil prices was then accorded through U.S. Fed’s

MCX ac tive crude oil futures contrac t star ted the month of March

decision of rate hike. Additionally data release showing first drop in

at Rs. 3,604 per barrel, up by 1.07 per cent from previous month’s

U.S. crude supply in 10 weeks and comments from Saudi Arabia’s energy

close helped by a smaller than the market expec ted rise in weekly

minister that output cuts led by the OPEC may be ex tended briefly

U. S . o i l i nve nto r y l e ve l s. Howe ve r d e s p i te ri s e i n we e kly U. S . o i l

suppor ted oil prices. However, later data showing persistent rise in the

inventor y levels being less than expec ted, the fac t that inventor y

number of active U.S. oil rigs, implying the potential for a fur ther climb

levels hit a new record high denied a big rise in oil prices. With

in crude production, again pushed oil prices down as rising output from

oil prices then sliding down in the month on concerns over higher

U.S. remained a threat to effor ts by other major producers to rebalance

o i l p ro d u c t i o n i n t h e U. S . , t h e m o n t h - o p e n i n g d a y h i g h o f R s .

the market. Oil prices fur ther continued to drag down on uncer tainty

3,647 eventually emerged as the high for t wo -month period under

over whether OPEC will ex tend its production cuts into the second half

review (i.e. March-April 2017). Internationally too, NYMEX crude oil futures registered its t wo -month high of US$ 54.44 per barrel on month– opening day as well. Steady slide in oil prices to two-month low B a rring b ri ef su p po r t fro m u n cer t aint y su rro u ndi ng Li bya’s c ru de p ro d u c t i o n , o i l p ri ce s l a rg e ly t h re a d e d a s o u t h - b o u n d m ove m e nt on concerns of growing U.S. crude produc tion that may potentially undermine OPEC’s effor ts to contain global oil supply. Data release that showed a seventh straight weekly increase in the number of active U.S. rigs drilling for oil, added to downward pressure on oil prices. Oil price decline was then suppor ted from a downbeat economic growth forecast for China that raised concern about its oil demand. Later, U.S.

of the year. Eventually, MCX crude oil futures registered the two-month (March-April) low of Rs. 3,076 on March 27. Internationally too, NYMEX crude oil futures traded to lowly levels of about $47 during this period. Hopes of extension to an OPEC-led pact lead p r i c e r e c o ve r y Oil prices later staged recover y helped by disruptions to Libyan crude produc tion and talk of a six-month ex tension to an OPEC-led pac t to l i m i t g l o b a l o u t p u t. O i l p ri ce s we re a l s o s u p p o r te d o n we e kly data release that showed larger-than- expec ted drawdowns in U.S. petroleum-produc t stockpiles and gains in refiner y ac tivit y. Later, resumption of produc tion from Libya’s largest oil field briefly stalled price recover y. Fur ther, oil prices moved up largely on expec tations that weekly U.S. crude -inventories data would show a decline as

data revealing a ninth weekly jump in crude supplies to yet another

re f i n e r i e s wo r k t o ke e p u p w i t h r i s i n g g a s o l i n e d e m a n d. H o p e s

record as well as the number of active U.S. oil rigs rising for an eighth

that OPEC and prominent producers such as Russia would agree to

week in a row kept oil prices on a downward slide. Oil prices fall was

roll over a produc tion- cut agreement added fur ther suppor t to oil

also suppor ted with the release of a monthly OPEC repor t that showed

p r i ce s. O i l p r i ce s wa s a l s o s u p p o r te d by e s ca l at i n g g e o - p o l i t i ca l

produc tion out of Saudi Arabia climbed back above 10 million barrels

tensions as U.S. airstrike on Syria, raised concerns over disruptions

of oil a day and a sizable increase in U.S. output.

to global crude supplies.

www.oswindia.com

Offshore World | 22 | April-May 2017

FEATURES 3,650

MCX crude oil futures prices (Rs./barrel) - MarchApril 2017

3,530 3,410 3,290 3,170 3,050

Source: MCX Fears of rising U.S. oil production pull oil prices

Additionally, natural gas prices were also aided by colder-than-normal

down again

temperatures seen across U.S. Nor theast, boosting demand for gas as a

By about mid-April, concerns over rising U.S. crude production pulled

heating fuel. Rise in natural gas prices was also suppor ted by slowing

oil prices down again. Consentient rise in number of active U.S. oil rigs

U.S. gas production amidst fall in U.S. gas inventor y levels.

over past several weeks and expectations for a rise in monthly domestic shale production in U.S. added to the decline in oil prices. However,

Authors are Managers with Multi Commodity Exchange of India Ltd., Mumbai. Views

signs that Saudi Arabia and Russia are sticking to their pledge to cut

expressed here are personal.

crude production kept oil price fall in check. Later, an unexpec ted weekly climb in U.S. gasoline supplies – the f i r s t i n a b o u t t w o m o n t h s a n d t h e re l e a s e o f t h e U. S . F e d e r a l R e s e r v e’s B e i g e B o o k r a i s i n g e x p e c t a t i o n s o f F e d r a t e h i k e i n J une – in turn strengthening dollar, kept oil prices on downtrend. Continuing signs of growth in U.S. crude produc tion and the restar t of Libya’s largest oil field, casted doubts that the Organization of the Petroleum Expor ting Countries will agree to ex tend its produc tionc u t d e a l i nto t h e s e co n d h a l f o f t h e ye a r. Fi n a l ly, M C X c ru d e o i l

Niteen M Jain Manager, Department of Research & Planning Multi Commodity Exchange of India Ltd E-mail: niteen.jain@mcxindia.com

futures closed the month of April at Rs. 3,174, down by 10.99 per cent over t wo -month period of March-April. The other major energy commodity, NYMEX natural gas futures prices rose 14.7 per cent in March-April, with a close at Rs. 212.1 per mmBtu. Expectations that natural gas in storage may fall shor t of demand in

Nazir Ahmed Moulvi Manager, Department of Research & Planning Multi Commodity Exchange of India Ltd E-mail: nazir.moulvi@mcxindia.com

upcoming summer season in U.S. helped the rise in natural gas prices. Offshore World | 23 | April-May 2017

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CASE STUDY

Sh ip P ropeller s: O pt i mi zi n g Pow er C o n ver s io n One of the crucial offshore activities is proper handling of various mobile units like drill ships, which can operate around different geographical locations and has structured operation similar to a commercial vessel. In the said situation, the design of the ship propellers is important for optimal power conversion and for avoiding higher noise. Dr Keun Woo Shin, research engineer in the Propeller & Aft-Ship R&D department at MAN Diesel & Turbo in Frederikshavn, Denmark, has been working intensively for many years on the computational fluid dynamics (CFD) based optimization of ship propellers and simulations incorporating the effect of the wake, cavitation simulations including an estimation of the erosion risk, and the analysis of scaling effects. He shares the use of CFD simulation solution STAR-CCM+® from Siemens PLM Software to model cavitation and optimize ship propellers.

he layout of ship propellers is a balancing act between optimal

foot equivalent units), the “Barzan” is one of the largest container ships

power conversion and the avoidance of unwanted cavitation effects,

in the world. It is powered by a MAN 10-cylinder, two-stroke diesel

which can result in damage to the propeller structure and higher

engine built under license by Hyundai, which gives the propeller shaft

noise levels. MAN Diesel & Turbo in Frederikshavn, Denmark, is using the

a power output of 61,000 kW.

computational fluid dynamics (CFD) simulation solution STAR-CCM+® from Siemens PLM Software to model cavitation [1] and optimize ship propellers. With a length of 400 meters and a capacity of nearly 19,000 TEU (20-

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These dimensions are even more impressive when one considers that the entire power output has to be converted into propulsion as efficiently

Offshore World | 24 | April-May 2017

CASE STUDY as possible by just a single propeller. Ship propellers for drives of this size have a diameter of 10 meters or more, weigh over 100 tons and are manufactured with high precision from special alloys, such as bronze or copper-nickel alloys. Cavitation is the formation and implosion of cavities in liquids. It occurs when the hydrostatic pressure falls below the evaporation pressure of the liquid due to high flow velocities. Steam bubbles are formed, which are entrained by the flowing liquid into areas of higher pressure, where the vapor in the cavities suddenly condenses and the vapor bubbles collapse. Cavitation on the sur face of solid bodies can cause microscopic deformation of the sur face material due to the high mechanical stresses. Over time, larger par ticles break off the sur face. Different types of cavitation include sheet cavitation, cloud cavitation, tip vor tex cavitation, and supercavitation.

through various flow regions with different pressure and speed ratios during each rotation. Cavitation Simulation on K appel Propellers with M o d i f i e d Pr o p e l l e r B l a d e Ti p s Kappel propellers have become increasingly prevalent in recent years because they operate much more efficiently than conventional propellers. These propellers feature blade surfaces that are no longer helical, and they have tips that are very similar in shape and operation to the winglets on the ends of the wings on modern aircraft. To achieve the greatest possible propulsion efficiency, a certain degree of cavitation is deliberately accepted in the design of modern ship propellers. However, too much cavitation can cause high pressure pulses on the hull,

Ship Propellers â&#x20AC;&#x201C; A Balancing Act Between O p t i m a l Po we r Co nve r s i o n a n d C av i t a t i o n The greatest challenge for designers of ship propellers is to use the available engine power as efficiently as possible in order to minimize fuel consumption and therefore operating costs: a 19,000 TEU vessel will consume bunker fuel at a rate of more than 150 tons per day. At a cost over $300 per ton, even

surface erosion on propellers and rudders and loss of propulsion.

marginal improvements in fuel economy will lead to significant savings.

tips of Kappel propellers.

In order to investigate the factors that cause cavitation in more detail and to find an optimal compromise between propulsion efficiency and cavitation tendency/formation investigations were carried out at Man Diesel & Turbo on the effect of a modified geometry of the propeller blade

However, propeller designers do not have unlimited freedom, a propeller designed with too much emphasis on power output can produce various

In order to have a reliable basis for comparison, a reference model was

cavitation effects, which can result in undesirable noise levels and give

chosen--a Kappel propeller with four propeller blades for which test

rise to erosion of the propeller structure.

results from experiments in the cavitation tunnel were available. The experiments were carried out at the SSPA in Gothenburg, Sweden, on

In addition, the propeller does not act within a nice homogeneous flow

a complete model of a ship. The propeller model had a diameter of 250

field, but in the wake of the shipâ&#x20AC;&#x2122;s hull, and the propeller blade passes

mm (original size d = 5.9 m), with a curvature of the blade tip towards

Figure 1: In the nonhomogeneous wake flow, sheet cavitation occurs on the front edge of the propeller in the upper region due to increased pitch and low hydrostatic pressure. This becomes detached (cloud cavitation) or becomes tip vortex cavitation Offshore World | 25 | April-May 2017

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CASE STUDY The cavitation model implemented in STAR-CCM+ was used. This is a Eulerian multiphase model using the VOF approach, whereby the phase interaction is mapped by means of a cavitation model based on the Rayleigh-Plesset equation. The influence of hydrostatic pressure was taken into account by considering gravity. CFD Model Computation grids with several million cells are generally used for CFD simulation in the maritime domain. While relatively small meshes with 1 to 2 million cells are sufficient for a simplified calculation of the propeller blade, 5 to 6 million cells are required for a complete propeller simulation with or without consideration of the hull wake. If the entire hull is included in the simulation, grids can comprise up to 20 million cells. The same order of magnitude also applies to cavitation simulations Figure 2: Sheet cavitation (top) is detached due to turbulent flows and becomes cloud cavitation (bottom)

of propellers and rudders.

the suction side and a low area ratio of Ae/Ao = 0.38. The experiments were carried out with a flow velocity of 4.5 m/s and a propeller speed of 24 RPS and the cavitation number was 3.8. A high degree of sheet cavitation was obser ved, which is detached near the front edge and forms a cavitation cloud. P r o p e l l e r Va r i a n t s w i t h Va r y i n g L o a d s o n t h e B l a d e Ti p s From the reference model, in which the maximum pitch was at a relative radius r/R â&#x2030;&#x2C6; 0.75, t wo variants with a modified pitch of the blade tip were then derived. In the case of the reference propeller, the reduc tion in the pitch compared to the maximum pitch was 35 percent, while a reduc tion of 10 percent and 60 percent was chosen for the variants. Compared to the reference propeller, the propeller variant with the small reduc tion has a higher load, and the one with

Figure 3: Pitch ratio P/D as a function of the relative mid-chord length s/R

the larger reduc tion has a lower load at the blade tip.

Hull flow While the physical experiments were carried out on a complete ship model,

The CFD solution STAR-CCM+ version 9.02 from Siemens was used for the

the simulation used the axial (velocity inlet) and transverse (pulse source)

calculations, for which the DES method (detached eddy simulation) was

flow components determined from a separate simulation of the hull flow

chosen, as cavitation detachment and erosion risk can be predicted with

as inflow boundary conditions for the computational space.

greater precision with this than with the RANS method (Reynolds-averaged Navier-Stokes). In spite of this, the calculation effort is lower than that for a

The experiment without a propeller showed good agreement for the

large eddy simulation (LES); this is an aspect that should not be overlooked,

axial flow, whereas the upward flow obser ved in the experiment did

especially with regard to the routine use in the design process.

not occur in the CFD simulation.

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Offshore World | 26 | April-May 2017

CASE STUDY Model generation For the purposes of this task, a computation grid was generated in which the propeller is surrounded by a rotating grid, but the rudder is outside the rotating region. A rigid body movement was assumed and the transition between the computational space and the rotating mesh was carried out using a sliding mesh. Cylindrical mesh refinements were made in the region of the expected cavitation detachment.

Figure 5: Grid refinements are used on the propeller surface and the blade tips to achieve better resolution. R e s u l t s o f c av i t a t i o n s i m u l a t i o n I t w a s f o u n d t h a t t h e c a l c u l a t i o n s c a r r i e d o u t o n t h e re f e re n c e propeller showed a high level of agreement with the experimental data, thus meeting a basic prerequisite for drawing reliable conclusions about the variants.

Figure 4: Computational space for the propeller simulation For the propeller, a trimmed hexahedral mesh with Δx = 0.5-1.0 on the wall surface and Δx = 0.1-0.5 on the blade edge was generated. For the description of the boundary layer, six layers of prismatic elements (Δh = 0.12-0.25 mm) were generated on the blade surface.

The shape, ex tent and form of the calculated cavitation demonstrated good agreement with the experimental results. Cavitation occurred between φ = 340° and φ = 90°, with supercavitation being obser ved around φ = 40° in the region 0.9R-1.0R. Likewise, good agreement was achieved with regard to the formation and detachment of sheet cavitation and the formation of a large amount of cloud cavitation.

The simulation began with relatively large time steps, corresponding

Co m p a r e d t o t h e r e f e r e n c e p r o p e l l e r ( 2 4 R P S ) , a r e d u c t i o n i n

to an angle increment of the propeller rotation of 5°. As soon as stable

t h e s h e e t c a v i t a t i o n c a n b e a c h i e ve d b y re d u c i n g t h e p ro p e l l e r

flow conditions had been established (4 to 5 revolutions), the time steps were reduced (Δt = 116 μs) in order to correspond to an angle increment of 1°, so as to detect small changes in the non-uniform cavitation.

s p e e d b y 0 . 5 R P S f o r t h e h i g h - s p e e d p ro p e l l e r ( p i tc h re d u c t i o n 1 0 p e rc e n t ) . H o w e v e r, t i p v o r t e x c a v i t a t i o n t h e n o c c u r s, w h i c h re d uce s prope l l er e ff icienc y by 0 .5 perce nt. In the p ropelle r variant

Offshore World | 27 | April-May 2017

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CASE STUDY

Figure 6: Both in the physical test and in the simulation, cavitation occurs between φ = 340° and φ = 90°, which shows good agreement in terms of type and form w i t h l o w p e a k l o a d ( p i t c h re d u c t i o n 6 0 p e rc e n t ) , s h e e t c a v i t a t i o n



It was found that the method outlined here, of including the wake

i n c re a s e s w i t h a n i n c re a s e o f t h e p ro p e l l e r s p e e d o f 0 . 5 R P S , a n d

in the calculation without including a hull model, is effective and

t i p c a v i t a t i o n a l s o o c c u r s.

feasible. 

Th e D E S (d e t a c h e d e d dy s i m u l at i o n ) m e t h o d u s e d f o r t h e s e

An abrupt reduc tion in blade tip load results in pronounced cloud

investigations is suitable for predicting the occurrence of cloud

cavitation. However, if the load is lowered gently, cloud cavitation can be

cavitation.

reduced or avoided. However, it is necessary to accept a loss in efficiency due to the occurrence of tip vortex cavitation.

Fi g u re 7 : R e f e re n ce p ro p e l l e r ( l e f t ) , va r i a n t w i t h h i g h p e a k l o a d ( ce n te r ) a n d s p e e d i n c re a s e d b y 0 . 5 R P S , va r i a n t w i t h l o w p e a k l o a d ( r i g h t ) a n d s p e e d re d u ce d b y 0 . 5 R P S ( R e f e re n z = R e f e re n ce ) Co n c l u s i o n The results of the investigations carried out can be regarded as successful in several respects. 

The simulation results demonstrated good agreement with the physical tests under the assumptions provided and the boundary

Mr Keun Woo Shin Research Engineer, Mechanics & Hydrodynamics M.Sc. Naval Architect, Ph.D. MAN Diesel & Turbo

conditions. www.oswindia.com

Offshore World | 28 | April-May 2017

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CASE STUDY

Strategies to Increase Safety and Optimise Cost in the Oil & Gas Industry

site visit by LOBO to Bacton Gas plant to demonstrate the system was carried out on Wednesday, 28/09/2016.

LO B O w a s p ro v i d e d w i t h f i v e d i f f e re n t s c e n a r i o s t o w h i c h t h e y provided detailed drawings in preparation to erect on site. A site visit was arranged and LOBO attended site to demonstrate erec ting and dismantling the system. This repor t details the type of scenario where LOBO can be used and provides advantages / disadvantages of the system. This report goes into detail on erect and dismantles times where major cost savings can be gained. The LOBO system also has the added benefits that it doesn’t need to be erected by trained scaffolders. Training can be carried for any individual to be competent to erect and dismantle. Who attendedPaul Timson, National Sales Manager; Jason Currie, LOBO Technician; and Andrew Roznowski, Senior LOBO Technician attended the site from LOBO System. A group of Operations Manager, Bacton Maintenance Focal Point, Jacobs BRP Focal Point, Multi-Discipline Foreman, Scaffold Foreman from Bilfinger; FM Coordinator and FM QA/QC Engineer from Shell; and personnel from AJS were present at the time of demonstration.

LOBO Scaffold:  2 men x 1 hour to erect  2 men x 15 minutes to dismantle  Total hours 2.5 man hours Conventional Scaffold; Tube and fitting would take:  3 men x 5 hours to erect  3 men x 2.5 hours to dismantle  Total hours 22.5 man hours No problems apart from the recurring issue of WAH controls during the transition of placing the guard rail on from the seated/kneeling position when the boards are placed. A discussion was held with the team and this can be alleviated by using an advanced guard rail process. Tower 2 - 2.4 x 1.4 x 4m, 2 Standards offset on gantry of Compressor K40

What was builtTower 1 - 1.8 x 1.7 x 4m, Erected in clear area between K2710 Flash Gas Skid and K40 Compressor

LOBO Scaffold:

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

2 men x 1 hour, 20 mins to erect



2 men x 20 minutes to dismantle



Total hours 3.3 man hours

Offshore World | 30 | April-May 2017

CASE STUDY Tower 4 - 1.8 x 0.8 x 4m, Erected in clear area between K710 Skid and K10 compressor

Tube and fitting would take: 

3 men x 5 hours to erect



3 men x 2.5 to dismantle



Total hours 22.5 man hours

Some minor problems with getting around the obstruc tion of t h e g u a rd r a i l o n t h e g a n t r y, w h i c h w a s e v e n t u a l l y o v e rc o m e b y t h e d e m o t e a m . I n i t i a l l y I w a s c o n c e r n e d a b o u t t h e s t a b i l i t y, b u t a f t e r c l i m b i n g t h e l a d d e r s t o t h e t o p l i f t I d i s c o v e re d i t w a s n o m o re u n s t a b l e t h a n a t u b e a n d f i t t i n g t o w e r o f t h e s a m e s i z e . T h e re i s a l s o a n o p t i o n t o u s e l o n g e r s t a b i l i z e r s / o u t r i g g e r s t o p ro v i d e a d d e d s t a b i l i t y. Tower 3 - 1.8 x 2 x 4m, Erected over K710 Flash Gas Skid

LOBO Scaffold:   

Tube and fitting would take:  3 men x 4 hours to erect  3 men x 2 hours to dismantle  Total hours 18 man hours This tower is an example of where LOBO can be used in narrow areas. There were no issues whatsoever erec ting this tower. The fac t that we were on our 4th job within a matter of hours gives some indication of how easy the system is to use. LOBO also showed us how we can ‘butt up’ against adjacent struc tures / walls to make the struc ture m o re s e c u re. Th i s wa s a c h i e ve d u s i n g t h e co m p o n e nt s co nt a i n e d with the demo kit with no issues.

LOBO Scaffold: 

2 men x 50 minutes to erect



2 men x 15 minutes to dismantle



Total hours 2.1 man hours

Tube and fitting would take; 

3 men x 5 hours to erect



3 men x 2.5 hours to dismantle



Total hours 22.5 man hours

2 men x 40 minutes to erect 2 men x 15 minutes to dismantle Total hours 1.8 man hours

Tower 5 (Mobile) - 1.2 x 0.8 x 1.6m, Erected in same area as Tower 4

Task was deliberately set with the obstacle of the skid and low level pipework hindering the base out of the tower, but was duly overcome.

LOBO Scaffold: >2 men x 30 minutes to erect >2 men x 15 minutes to dismantle >Total hours 1.5 man hours

Offshore World | 31 | April-May 2017

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CASE STUDY Tube and fitting would take: >3 x 2.5 hours to erect >3 x 1 hour to dismantle >Total hours 10.5 man hours

Labour Cost, based on £31.00 per man hour (this rate is used for comparison only). Labour Cost

Conventional Scaffold

LOBO Erect

Dismantle

Erect

Dismantle

We only got as far as the board on the first lift with this one, as time

Tower 1

£ 62.00

£ 15.50

£465.00

£232.50

didn’t permit completion The dual castors however were quick to assemble

Tower 2

£ 83.70

£ 18.60

£465.00

£232.50

and easy to attach and detach. During erection the first lift was reached

Tower 3

£ 49.60

£ 15.50

£465.00

£232.50

within 15 minutes. The tower was very stable even though it was mobile.

Tower 4

£ 40.30

£ 15.50

£372.00

£186.00

Tower 5

£ 31.00

£ 15.50

£232.50

£93.00

Total Cost

General Overview

£347.20

£2,976.00

A couple of concerns - one was around the components themselves, with the smaller attachments and fittings potentially being lost or mislaid, or

LOBO Scaffolding Cost’s: To build all five towers without dismantle

even damaged, so we would need to keep the materials in a secure area

Tower 1

£5,805.00

or use a LOBO Towestore container. The compressor house or generator

Tower 2

£6,317.00

building where the system might be primarily used would be an ideal

Tower 3

£4,556.00

area to use LOBO. As a time comparison, only 2 towers would have been

Tower 4

£3,688.00

erected using tube and fitting, with no dismantle. In the same time span

Tower 5

£2,254.00

5 jobs were erected and dismantled with the LOBO system.

Total:

£22,620.00

There were issues with the gap between the top guard rail and the lift you are accessing from the internal ladder. This could easily be overcome with additional components fixed utilising the bracket clamps. The LOBO system, as with any system has its advantages, time factor, easy to assemble etc. it really comes into its own when there are no obstructions to negotiate on upper levels, however the system is versatile to work around obstructions if the erection is planned.

Galvanised Scaffolding: There is currently 9 tonne erected in this location. Conclusion The benefit of using LOBO is the labour time saved to erect and dismantle. Based on the towers erected an average saving of £525 per tower was achieved on man hours. At a purchase price of

( To b u i l d a l l p l a t f o r m s d u p l i c a t i o n o f a l l c o m p o n e n t s wo u l d b e

£7,907 to purchase the materials a total of 15 towers would need to be completed for the cost saving to be realised. The hire cost of the conventional scaffold would also not apply during this period. In addition to the labour time saved any trade can be trained in erecting

required). £7,907.00

and dismantling the system which reduces manpower numbers on site.

The cost to purchase enough LOBO materials to erect and dismantle each tower on an individually

Summary Man Hours it takes to erect, LOBO vs Conventional Conventional Scaffold

LOBO

Man Hours Erect

Dismantle

Erect

Dismantle

Tower 1

0.5

7.5

Tower 2

2.7

0.6

7.5

Tower 3

1.6

0.5

7.5

Tower 4

1.3

0.5

Tower 5

0.5

7.5

Total Hours

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Cour tesy : M r Rob er t B ok ros, D irec tor, LOBO Sy stems Ltd Offshore World | 32 | April-May 2017

Offshore World is an all-encompassing magazine for the hydrocarbon and allied industries. A bi-monthly magazine, launched in December 2003, Offshore World disseminates authen c, cri cal and well-researched informa on on global hydrocarbon industry innova ons. The magazine offers latest and strategic informa on on the upstream and downstream hydrocarbon industry. The endeavour of Offshore World is to become a vehicle in making “Hydrocarbon Vision 2025” a reality in terms of technologies, markets and new direc ons, and to stand as a medium of reflec on of the achievements and aspira ons of Indian hydrocarbon industry. Circula on: 25,370

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recalibration; low head loss and maintenance.

Blackmer offers its S Series Twin Screw pumps that are ideal for transferring bitumen from tankers to the distant tank-farm facility.

Other features that make Blackmer S Series pumps ideal for use in marine applications include self-priming, compact design for convenience, ability to run dry for short periods, high suction lift and constant flow rates despite varying conditions. Blackmer offers its S Series Twin Screw pumps in a With Timing Gear (WTG) configuration that has a double-suction design with no metal contact between the hydraulic components and automatic axial balancing. They are low noise and nearly pulsation-free with little fluid agitation or emulsified shear, making them ideal for use with corrosive and non-corrosive, low or high viscosity, and clean or abrasive liquids. For details contact: Dover India Pvt Ltd 40 Poonamallee Bypass Senner Kuppam Chennai 600 056 Tel: 044-26271020, 26271023 E-mail: sales.psgindia@psgdover.com

Offshore World | 34 | April-May 2017

PRODUCTS Conveyance Tool for Slim Open Hole Applications

D u a l st re a m We t G a s Fl ow M e te r s Solar tron ISA’s Dualstream meters are designed for direct installation at a wellhead or flow line, either top side or subsea. Stable and reliable with a typical lifespan greater than 20 years, Dualstream meters are ideal for unmanned platforms and marginal field development as well as for ultra deepwater installation. The Dualstream family consists of four products: Dualstream Venturi, the original wet gas metering system, is a cost-effective solution for allocation or monitoring gas flow rates. Applications include tie -ins to existing infrastructure and multiwell fields, in which production fluids remain relatively constant throughout the field’s life. The Dualstream Venturi is generally used in combination with test separators or tracer dilution techniques. Dualstream 1 is a multiphase measurement solution for allocation or monitoring gas condensate wells. It is typically used on a per well basis at the wellhead or in the flow line. Standard field instrumentation makes it ideal for remote wellheads or unmanned platforms. The Dualstream 1 is recommended when real-time, high-accuracy gas measurement is a fundamental requirement, and water measurement accuracy is required for efficient well operation. Dualstream 1 replaces the need for test separators or tracer dilution techniques. Dualstream 2 is a multiphase measurement solution typically used on wells with high levels of liquids, which can cause gas rate over read. The Dualstream 2 uses a dual pressure differential technique to measure liquid levels and a proprietary algorithm to achieve realtime, multi-phase measurement.Dualstream 3 utilizes a unique, patented Solartron approach for water fraction measurement for real-time measurement of phase fractions in wet gas applications. Its flow meters incorporate multipath, non-intrusive sensors that have demonstrated excellent performance in oil and water continuous flow and proven to be extremely robust in handling changes in field hydrocarbon compositions. For details contact: Solartron ISA (A Unit of the AMETEK Oil & Gas Business Unit) Hackworth Industrial Park Shildon, County Durham DL4 1LH, U.K. Tel: +44 (01) 1388 773065, 774888 E-mail: sales.solartronisa@ametek.com

Probe Holdings, Inc offers range of field-proven I-Wheel downhole conveyance optimization tools. Probe offers a new I-Wheel with a 5.3 inch outside dia for slim open hole applications that pose deployment problems due to friction produced by the low flow area surrounding the tool, causing conveyancing tools to stick. The tool will offer a reliable, cost-effective way to deploy logging instruments in restricted dia environments, solving an expensive and challenging problem. Now more than ever, wireline engineers must be able to deploy - and retrieve - downhole tools to carry out operations ranging from logging and sampling in open hole, to running logging tools, perforating guns, or plugs and packers in cased hole. Complicating matters, these tools must often reach target depths of over 20,000 ft. Hundreds of runs have been executed for applications in deepwater, offshore, onshore, remote fields and HPHT environments. It has been used in the Middle East, Far East, West Africa, Gulf of Mexico, Mexico and the UK-Norwegian North Sea. The I-Wheel uses low-friction ballistic grade bearings that reduce toolstring drag along the borehole wall, allowing the toolstring to reach increased depths, reducing the need for - or improving the efficiency of - standard conveyancing methods that demand coiled tubing, tractors or tubing to convey logging devices or perforating strings. Available in many sizes for cased hole and open hole, it has multiple applications. Because both “in line” or “over-body” configurations are available, I-Wheels ensure toolstring length is kept at its shortest where “rig up” height can be a major factor in wellbore access. With its rugged, ballistic grade design, it is safe to deploy in all wellbore environments, and can be run repeatedly before requiring maintenance or replacement. These capabilities, when combined with the tool standoff provided by the I-Wheel design, minimize the risk of differential sticking, increasing operational efficiency and reliability. It can be used in virtually any well trajectory, under conditions that otherwise make conveyance by wireline impossible. For details contact: Probe Holdings, Inc 6824 N Sam Houston Pky W Houston, TX 77064, U.S.A. Tel: +1 (281) 987 2244 , Fax: +1 (281) 987-7677 E-mail: federico.casavantes@probe1.com

Offshore World | 35 | April-May 2017

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PRODUCTS Oil-free Reciprocating Gas Compressors

Density Compensated Water Cut Monitor

NGH100 compressors have been designed to optimize operational capabilities in a wide variety of critical oilfield production operations, including wellhead transfer, artificial lift and vapour recovery.Blackmer NGH100 compressors are highly efficient horizontal opposed units featuring a non-lubricated design available in heavy-duty single-stage (NGH1013) and two-stage (NGH1023) configurations. A key operational characteristic of NGH100 compressors is their ability to handle sour gas that contains up to 8% dry hydrogen sulphide (H2S), which is a flammable, extremely hazardous byproduct of recovered crude oil and natural gas. To enhance their compatibility with sour gas, the NGH100 compressors feature select parts (that follow NACE guidelines) in all gas-containment areas. They incorporate steel wrist pins that ride on steel needle bearings for extra life under severe operating conditions. NGH compressors are constructed of ductile iron with a balanced forged-steel crankshaft. Piston rings and rider bands are made of PTFE/PEEK. NGH compressors have the capability to handle wet and dry gas, and offer flexible cylinder sizes for various flow rates and pressures and motorspeed capabilities up to 1,800 rpm. These compressors can achieve flow rates up to 3,000 MSCFD at max working pressures up to 1,500 psig (103 bar). For details contact: Dover India Pvt Ltd 40 Poonamallee Bypass Senner Kuppam, Chennai 600 056 Tel: 044-26271020, 26271023 E-mail: sales.pasgindia@psgdover.com

AMETEK Drexelbrook has enhanced its Universal IV Density Compensated Water Cut Monitor with updated firmware to allow for up to 10 different density calibration points to reduce recalibration requirements and ensure maximum accuracy load to load. The new Universal IV In-Line Water Cut Monitor (CM) with Multi-Cal Density Compensation automatically compensates for density changes that may occur in the composition of products and reduces the calibration requirements due to those changes. The Universal IV CM is designed for high-accuracy water in oil measurement. The DCM allows the Universal IV CM to maintain its stated accuracy with variations in density up to 10 API, ensuring measurement accuracy from load to load regardless of changes in product composition.

Wafer Cone Flow Meter The Wafer-Cone features a flangeless design. The element is easily replaced to accommodate changing flow conditions. Recalibration is not required. There are no moving parts to maintain. The unit combines exceptional flexibility with high performance. The Wafer-Cone is the perfect lowcost solution to tough flow measurement problems in water and wastewater, chemical, food and beverage, plastics, pharmaceuticals, district HVAC, textile, power and oil/gas production. Wafer-Cone Flow Meter for superior accuracy and repeatability. The space-saving unit is easy to install. It is ideal for tightspace installations and retrofits. The Wafer-Cone further reduces life-cycle costs with a long life and requires almost no maintenance. No straight pipe runs. For details contact: Toshniwal Hyvac Pvt Ltd 267 Kilpauk Garden Road Chennai 600 010 Tel: 044-26445626, 26448983 E-mail: sales@toshniwal.net www.oswindia.com

All Universal IV CMs come factory pre-calibrated and require only onepoint validation. Field configuration can be done anywhere along a two-wire loop with the STExplorer software. Users also can configure the instrument vial local display/keypad without the need for a laptop or handheld communicators. The Universal IV CM utilizes electrical measurement (capacitance) and correlates that to water cut (% of oil in water). Those measurements can be affected by changes in density. Density compensation is done to correct for changes in electrical properties that may impact output measurement and is particularly suitable for midstream refinery and oil pipeline operators. Along with optional Density Compensation, the Universal IV CM features an in-line probe design that allows it to analyze a large representative sample of flowing fluid in real time. Its sensing element extends into the main process line, taking an average of the capacitive property of the fluid over its entire length. The monitorâ&#x20AC;&#x2122;s onboard electronics then computes the relationship between capacitance change and water cut. The Universal IV CM offers the industryâ&#x20AC;&#x2122;s highest pressure and temperature capabilities (1500 PSI and temperatures up to 450 oF) as well as field-proven CoteShield technology, which ignores coating buildup on the probe. A temperature-compensation (TC) version is available that measures product temperature internally and calculates a true water cut reading at any temperature as long as the water is in liquid state. Applications for the Universal IV CM include automatic well testing (AWT), lease automatic custody transfer (LACT), basic sediment and water (BS&W), separation vessels, pipeline slug detection, truck unloading, pipe protection, dielectric analysis and machinery lube oil monitoring. For details contact: AMETEK Drexelbrook 205 Keith Valley Rd, Horsham, PA 19044, U.S.A. Tel: +1 215-674-1234 Fax: 215-674-2731 E-mail: drexelbrook.info@ametek.com

Offshore World | 36 | April-May 2017

PRODUCTS Versatile Liquid LevelSensor AMETEK Drexelbrook has enhanced the communication capabilities of its Total Tank Level Measurement System to include dual 4-20 mA and Har t outputs in addition to the standard Modbus protocol for measuring total level, inter face level and temperature. The rugged and versatile level measurement system is an accurate, cost- effec tive alternative to flexible SS cable probes. It incorporates proven magnetostric tive sensing technology and features multi-variable func tionalit y. The system is accurate to 0.01% of measured span, less than 1-mm absolute over the full measurement range. The system makes it an ideal choice for oil and gas, chemical and petrochemical storage tank and inventor y control applications. Its five temperature sensors are evenly distributed over the ac tive length of the polymer or SS probe. The probe is available in a rigid SS-316 version and in flexible PVDF in lengths up to 50 feet, an industr y exclusive. The system meets FM, FMc, ATEX and IECEX hazardous area approvals and requires minimal maintenance. A variety of floats and mounting accessories are available to fit virtually any application. The probes are offered with a choice of mounting configurations. AMETEK Drexelbrook offers a full range of process level measurement solutions, including RF Admittance/Capacitance, TDR/GWR, Radar, Ultrasonic, Magnetostric tive, Hydrostatic, Vibration, Conduc tive and Float devices. Drexelbrook level measurement instruments are used in a wide range of industries, including petroleum, chemical, petrochemical, water/ wastewater, power, pharma, mining, aggregates among others. For details contact: AMETEK Drexelbrook 205 Keith Valley Rd, Horsham, PA 19044, U.S.A. Tel: +1 215-674-1234 Fax: 215-674-2731 E-mail: drexelbrook.info@ametek.com

New Platform of HMI Workstations Eaton has expanded its range of MTL GECMA HMI workstations, introducing two new products â&#x20AC;&#x201C; a Thin Client (TC) and Personal Computer (PC) version. The company can now offer a complete range of workstations based on a common platform design. As such, Plant Managers can reduce operation costs, optimise productivity and increase plant safety, with the additional benefits of reducing space in the cabinet and future-proofing the plant. The TC and PC versions complement the existing MTL GECMA Remote Terminal (RT) which has a unique modular design. These next generation HMIs feature state-of-the-art technology to offer unparalleled levels of safety and are approved to global hazardous certification for Zone 1 environments. As a result they offer safe handling on site and guarantee high reliability in hazardous EX zone areas in chemical, pharmaceutical, refinery plus the oil and gas industries worldwide. The TC version is designed for virtualisation applications, eg. batch control. The workstation works with a client server in the safe room across a LAN. This saves space in the cabinet as users do not need a dedicated PC and the user can control up to 255 HMIs from a single server. The PC version is stand-alone working across the LAN. It has state-of-the-art system hardware, which meets the needs of the most complex applications with high computing power demand, eg, packing. The workstation has a watch dog function which automatically monitors the operating system and if there is no input from the system it automatically re-starts itself. This avoids hard re-starts, which saves time associated with turning the system On and Off, and minimises any stress on the system for increased reliability. RT is a point-to-point device, with one workstation assigned to one PC in the safe area. It features a keyboard, mouse and video, and is perfect for controlling tablet coating or dry granulation machines. The RT terminalâ&#x20AC;&#x2122;s modularity means upgrades to existing installations are quick and easy, which can save time, and minimise costly maintenance and downtime. Traditionally, the whole unit would have to be dismantled off-site, but with MTL GECMA, individual parts can be replaced simply on-site, increasing plant availability. For details contact: Eaton Butterfield, Great Marlings Luton, Bedfordshire LU2 8DL, U.K. Tel: +44 (0)1582 723633 E-mail: mtlenquiry@eaton.com

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MARKETING INITIATIVE

Self-Conditioning Flow Meter Solves Measurement Challenges for LNG Processing and Distribution

ith the continuous increase in demand for energy worldwide, the popularity of clean-burning natural gas has grown rapidly over the past decades. Its relatively abundant supply, along with new high efficiency production technologies and its lower carbon dioxide (CO2) emission footprint compared to other energy resources, have all made it a cost-effective, environmental-friendly choice for consumer electric power generation systems and other energy applications. Over long distances, the safest and most economic method of transporting natural gas is in a liquid state. Plants dedicated to turning raw natural gas into Liquefied Natural Gas (LNG) and later back into gas for distribution are either on-stream, under construction or planned all over the globe. The production, processing, storage, transportation and distribution of Natural Gas all require accurate, repeatable flow measurement. The high-pressure, volatile nature of this valuable, but hazardous fluid makes it a challenge to measure in both its gaseous and liquefied state. While there are multiple gas and liquid flow measurement technologies, many of them rely on moving part designs (a potential safety hazard) or fail to measure accurately over a wide turndown range under upset conditions or require long straight runs of pipe upstream and downstream from the location of the meter that are difficult to achieve under the always crowded production and refining environment.

other maintenance represent potential safety issues, accuracy problems and added operating costs that burden production and refinery operations The Solution

Featuring a unique self-conditioning flow technology, the versatile V-Cone Flow Meter from McCrometer offers a lowest-installed cost, low-maintenance and highly reliable measurement solution for challenging hazardous applications in LNG processing, transportation, storage and distribution. The V-Cone Flow Meter’s no-moving parts, high-reliability design offers safe, highly stable measurement in explosive environments with 25 years of proven service and the standard global agency approvals required for use worldwide. The advanced V-Cone Flow Meter offers significant installed and operational cost savings in LNG facilities with complex or crowded equipment layouts, where the options for upstream and downstream piping are limited. The V-Cone Flow Meter utilizes a centrally located intrusion that redirects the flow to the outside of the pipe and conditions the flow by reshaping the velocity profile, all but eliminating the need for straight pipe runs. The V-Cone requires straight pipe runs of only 0 to 3 pipe diameters upstream and 0 to 1 pipe diameters downstream. This smaller footprint, requiring up to 70% less straight pipe without being affected by flow disturbing equipment up or down stream, is more compact than any other differential pressure meters.

The Challenge

Converting natural gas to its liquefied LNG state reduces its volume by 600 percent. This reduction in volume facilitates transport by ship, export and distribution. The natural gas is first cooled to -260 0 F (-162.2 0 C), which condenses the fluid into the liquefied state. Flow is then measured again several times during transportation, storage, re-gasification and distribution through pipelines to the end users.

The V-Cone Flow Meter dramatically reduces installed and operational costs. The cost savings is especially common at both liquefaction and re gasification facilities where large lines enter and exit the plant. Beyond the initial savings by installing much shorter pipe runs, there is an additional energy cost savings that accrues from maintaining the extreme cryogenic temperatures necessary over a much shorter distance. The need for costly pipe insulation also is reduced for the same reasons.

The liquefaction process takes place in hazardous, space -constrained facilities. LNG processing, transportation, storage and distribution require a flow meter that is rugged, dependable, simple to install and suitable for use in potentially explosive environments. Flow meter technologies with moving parts or those requiring complex installation, or frequent recalibration and

The V-Cone Flow meter is a differential pressure (dP) type flow meter. The principle of operation is based on Bernoulli’s theory of conservation of energy. In a closed system, as the cross sectional area changes, so must velocity. By placing the cone in the pipe, the cross sectional area is reduced forcing velocity of the fluid to increase. As velocity increases, pressure drops and it is that pressure drop that can be measured and used to determine the fluid flow rate. This system can be used for both liquids and gases, as well as steam in other applications. The difference in pressure is incorporated into a derivation of the Bernoulli equation to determine fluid flow. As the fluid moves past the cone, very short vortices are formed that result in a low amplitude, high-frequency signal optimal for excellent signal stability. The V-Cone maintains ±0.5% accuracy and ±0.1% repeatability over a 10 to 1 turndown and the cone conditions the fluid such that there is relatively low permanent head loss.

Figure 1: Liquid Natural Gas tanker at port www.oswindia.com

The low permanent head loss achieved by the V-Cone Flow Meter results from the shape of the cone itself, which minimizes energy losses commonly caused Offshore World | 38 | April-May 2017

MARKETING INITIATIVE

Figure 2: The V-Cone Flow Meter by areas of low flow, cavitation and erratic flows. Each V-Cone Flow Meter is sized to meet desired application requirements and may be specifically designed to have high or low head loss. Regardless, the overall energy consumed by the V-Cone Flow Meter is minimized because of its inherently efficient design characteristics. The rugged, no moving parts V-Cone Flow Meter measures abrasive, dirty, and particle-laden fluids over a wide range of Reynolds numbers without wear or clogging concerns, resulting in an unprecedented standard 25 year operating life with virtually no need for maintenance. Reynolds numbers are a measure of whether flow is laminar or turbulent. With relatively low maintenance costs, which are an extremely important concern in LNG processing and distribution, the V-Cone Flow Meter helps reduce total operating costs. The turbulent vortices produced by the V-Cone condition the fluid flow to be homogeneously distributed and extremely stable. It is this turbulent flow that actually protects the cone as well as the surrounding pipe. The turbulent flow forms a boundary layer against the pipe wall and cone protecting it from particle impingement which can cause deterioration or buildup on the surfaces. Normal surface deterioration in flow meters, piping, and other equipment occurs as a result of fluid sheer stress. Shear stress creates a problem where

Figure 3: Cut-away side view shows the V-Cone flow meter’s V-shaped conical intrusion in the center of the pipe. there is a solid boundary layer in direct contact with the walls of the pipe. Shear stress occurs in laminar and unstable turbulent flows. The V-Cone’s very stable turbulent flow all but eliminates this shear stress and consequently results in no surface deterioration. Additionally, due to the shape of the cone, there is little chance of cavitation on the backside of the cone to erode the surface. Each V-Cone is calibrated during the manufacturing process and because the design is so robust, there is never a need for regular maintenance or recalibration after installation. Conclusion

With its self-conditioning, no-moving parts differential pressure (dP) sensing technology, McCrometer’s V-Cone Flow Meter is now installed in a wide variety of LNG applications all over the world. Hundreds of V-Cone Flow Meters have been installed to measure gas as it flows into liquefaction trains and then from the trains into storage tanks. It has even been used in specialized cryogenic applications where flow was never before measured. The versatile V-Cone® Flow Meter offers a lowest-installed cost, low-maintenance and highly reliable measurement solution for challenging hazardous applications in LNG processing, transportation, storage and distribution. Engineers in the oil and gas industry have relied for over 25 years on the V-Cone Flow Meter to remain accurate in the toughest applications. Its lowmaintenance, no-moving-parts design is proven to remain accurate for 25 or more years and all but eliminates the need to shut down production for calibrations, inspections or regular primary element replacement needed for an orifice plate. It saves money by increasing production

Toshniwal Hyvac Pvt Ltd , 267,Kilpauk Garden Road Chennai - 600010 Contact : +91 44 26445626 / 8983 Email : sales@toshniwal.net Web : www.toshniwal.net

Offshore World | 39 | April-May 2017

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MARKETING INITIATIVE

Operational Excellence with Supertrak

&R presents intelligent conveyor technology at interpack. At this year’s interpack (Booth E62, Hall 6), B&R will be showcasing SuperTrak – a versatile, intelligent con-veyor system that represents a key contribution to Packaging 4.0. This smart manufacturing revolution prom-ises CPG producers unprecedented levels of OEE and reduced TCO. SuperTrak is a new generation of robust, operator-friendly intelligent conveyor technology based on long-stator linear motors. Unlike similar systems available thus far, it offers true industrial-grade reliability and easy serviceability. Its independently-controlled shuttles allow mass production of highly customized prod-ucts, while also minimizing time lost on stoppages and product changeover.

About B&R

B&R is a privately owned company with headquarters in Austria and offices all around the world. As a global leader in industrial automation, B&R combines state-of-the-art technology with advanced engineering to provide customers in virtually every industry with complete solutions for machine and process automation, motion control, HMI and integrated safety technology. With industrial fieldbus communication standards like POWERLINK and openSAFETY as well as the powerful Automation Studio software development environment, B&R is constantly redefining the future of automation engineering. The innovative spirit that keeps B&R at the forefront of industrial automation is driven by a commitment to simplifying processes and exceeding customer expectations.

Seamless connectivity

B&R will also be showing how open standards like POWERLINK, OMAC PackML and OPC UA will provide seamless connectivity – the lifeblood of industrial IoT solutions. From the sensor to the cloud, across multi-vendor lines and value chains, this connectivity will bring a dramatic leap in operating efficiency. More about B&R’s contributions to the future of the packaging industry can be found in the Packaging 4.0 white paper and the special edition of its customer magazine. Both publications will be available at Booth E62 in Hall 6 at interpack.

B&R Industrial Automation Pvt. Ltd B&R-Strasse 1, 5142 Eggelsberg, Austria Tel: +43 7748 6586-0 Email: press@br-automation.com

Figure: Packaging 4.0 promises CPG producers unprecedented OEE and reduced TCO. www.oswindia.com

Offshore World | 40 | April-May 2017

or years elec trical switching devices for hazardous areas have

buzzer provides visual and audible indication in the form of a flashing

been a focus for Pepperl+Fuchs. For Hannover Fair the por tfolio

light and a loud audible alarm.

for elec trical explosion protec tion has been significantly

expanded and updated.Cer tified switches for panel mounting - many func tions selec table

Disconnect- and Safety Switches

This line of switches ensures safe operation of motors and drives in explosion hazardous areas. Pepperl+Fuchs steps up with a completely

Pepperl+Fuchs delivers a large variety of products with many different t ypes of protec tion and housing variants for machine control and elec trical net works in hazardous areas.

new model range with protec tion rating Ex de. The tamper resistant safet y switches feature three -way locking. All switches are available as 3, 4 and 6, pole versions with 16, 25, or 40 A in a GRP or stainless steel enclosure.

Switches and push buttons for panel mounting

Automation is our world. A Per fec t application solution is our goal.

Of par ticular interest is the comprehensive line of switches, i l l u m i n ate d p u s h b u t to n s a n d e m e rg e n c y s to p b u t to n s. Th e y a re

A w i l l i n gn e s s to t a ke e nt re p re n e u ri a l ri s k s, a p i o n e e ri n g s p i ri t, a n d

all charac terized by their low mounting depth. The bayonet catch

a f i r m b e l i e f i n t h e i r o w n i nve nt i ve p o we r s - t h e s e we re t h e a s s e t s

enables fast and secure installation in any switch panel. All switches

t h a t Wa l te r Pe p p e r l a n d Lu d w i g Fu c h s s t a r te d o u t w i t h w h e n t h e y

are cer tified Ex e for installation in standard panels in hazardous

o p e n e d t h e i r M a n n h e i m r a d i o re p a i r s h o p i n 1 9 4 5 . Th e i r i n ve nt i o n

area locations.

o f t h e p rox i m i t y s w i tc h a f e w ye a r s l a te r p ro ve d t h e i r s t re n g t h .

New in hazardous areas: Buzzers and flashing buzzers

Pepperl+Fuchs introduces new buzzers to hazardous locations. The

I t w a s a l s o t h e s t a r t i n g p o i n t i n a s u c c e s s f u l h i s to r y d e f i n e d b y c l o s e c u s t o m e r re l a t i o n s h i p s a s w e l l a s i n n o v a t i v e a u t o m a t i o n te c h n o l o g i e s a n d p ro c e d u re s. T h e n a s n o w, o u r f o c u s i s d i r e c t e d s q u a r e l y o n t h e i n d i v i d u a l re q u i re m e n t s o f e a c h c u s to m e r. Wh e t h e r a s a p i o n e e r i n e l e c t r i c a l e x p l o s i o n p ro te c t i o n , o r a s a l e a d i n g i n n o v a to r o f h i g h l y e f f i c i e n t sensors - the close communication with our customers is what a l l o we d u s to b e c o m e t h e l e a d e r i n a u to m a t i o n te c h n o l o g y. O u r main objective is combining state - of-the -ar t technologies and co m p re h e n s i ve s e r v i ce s to o p t i m i ze o u r c u s to m e r s Â´ p ro ce s s e s a n d a p p l i c a t i o n s.

Pepperl+Fuchs (India) Private Limited, Plot#10, 3rd Main, 1st Stage, Peenya Industrial Estate, Bangalore - 560 058, INDIA Phone: + 91 80 2837 8030, Fax: + 91 80 2837 8031 Email: pa-info@in.pepperl-fuchs.com Website: www.pepperl-fuchs.com Offshore World | 41 | April-May 2017

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MARKETING INITIATIVE

New Products For Switching And Control In Hazardous Areas

MARKETING INITIATIVE

KLAW Launches New Marine Breakway Coupling

he Marine2 launched by KLAW is 32% shorter and 25% lighter than alternative Marine Breakaway Couplings on the market and is designed to reduce stress on hoses used on offshore hose reel applications.

The shorter design as shown in illustration A reduces coil disruption on the hose reel; unlike alternative designs (illustration B) that are longer and therefore increase hose stress and fatique. The KLAW Marine Breakaway Coupling provides a safe par ting point within the hose transfer system in ship-to-ship, ship-to-shore and vessel to offshore platform transfers. The coupling is designed to activate in an emergency such as vessel drift in stormy conditions or pressure surge. When activated, the valves within the coupling shuts both upstream and downstream flow within the hose transfer system and allows immediate separation of the line.

Figure A: the advantage of the shor t Marine2 KLAW Marine Breakaway Coupling where less space is shown between the coupling and connectors and the inner hoses.

risk of damage to assets, injury to personnel, extended downtime and

Figure B: the disadvantage of alternatives: the longer coupling results in greater spacing between hoses and inner hoses. With additional hose winding over this coupling section, the additional weight again increases the stress on the hose and therefore an increased risk of fatigue.

contamination of the environment.

KLAW Easy Reset Facility is also fitted as standard on the Marine2 which

The KLAW Marine2 therefore minimises risk of spill and reduces the

means the coupling can be serviced or reset after activation within the Like its KLAW predecessor, the Marine2 is designed to resist those bending

line – again reducing downtime and stress on the hose due to the reduced

moments and torsional forces expected from floating wave motions and

need for additional handling.

the rigours of the marine environment and reacts only to those axial forces that occur in an emergency.

The design of the KLAW Marine2 Breakaway Coupling is based on 18 years of successful field performance and over 15,000 KLAW units in reliable

The KLAW Marine2 also continues to use the proven and reliable KLAW

operation around the world.

Flip-Flap Valve system which delivers 100% instant closure. The KLAW Marine2 comes in standard nominal bore sizes of 2”, 3”, 4”, 5” and 6” and is compatible with soft walled, hard walled, and composite hoses. A variety of end connections are available including NPT and BSP threaded, flange connections, and hammer union fittings.

Figure: Marine2, the new KLAW Marine Breakaway Coupling, is 32% shorter and 25% lighter than alternatives and has been designed to reduce stress on reeled hoses.: Cable replacement or access point www.oswindia.com

Tel: +44 1373 827 100 Email: info@klawproducts.com www.klawproducts.com

Offshore World | 42 | April-May 2017

he Lubrizol Corporation, inventors and the largest manufacturers of CPVC (chlorinated polyvinyl chloride) compounds worldwide; Georg Fischer (abbreviated GF) global leader in industrial piping systems and Sangir Plastics Pvt. Ltd. a quality Indian manufacturer of thermoplastics piping & sheet solutions announce the signing of Corzan® Processor agreement for the manufac turing and sale of a complete Corzan® CPVC Industrial solution that will provide increased corrosion resistance and greater peace of mind to industries throughout India. The comprehensive product package of Corzan® Industrial Systems will be jointly launched & commercially made available in the Indian market in April 2017 and it will exclusively cater to industrial piping segment and fabricated corrosion resistant industrial solutions. For more than a decade Lubrizol has been dedicated to supplying leading industrial organizations in India with the most consistent, highest quality CPVC Industrial systems with its world class Corzan® product offering. The newest partnership with GF & Sangir Plastics strengthens the supply of a quality Corzan® pipes, fittings and complete Industrial system made from Lubrizol’s time tested industrial CPVC compounds. This will ensure continued supply of the only Corzan® CPVC compound with 24448 Cell Class and 4120-06 rating providing 3X the impact strength and 25% higher pressure rating at elevated temperatures in India. Long lasting problem free industrial products made from pioneering Corzan® CPVC compounds along with the reliable advice and exclusive partnership will lower risk and ensure success of industrial organizations who need proven chemical resistance over decades.

Image: Mr. Michael Fornes, Global Business Manager – Corzan® Industrial Systems from Lubrizol’s Engineered Polymers Division

Mr. Michael Fornes, Global Business Manager – Corzan® Industrial Systems from Lubrizol’s Engineered Polymers Division says, ‘We are very pleased with this outstanding alliance which will provide a complete one stop Corzan® Industrial solution along with best in class application expertise for the Industrial piping market in India. The combined strong reputations of Corzan® with GF and Sangir will definitely strengthen our mutual commitment to delivering product reliabilit y in India.’ He fur ther adds, ‘this par tnership will leverage our global expertise, GF’s global experience and Sangir Plastics’ local manufacturing and approach to drive optimized solutions within India and abroad. This will ultimately help the complex & niche Indian industrial market to grow and be more successful with our combined & cohesive technological support, innovation, and wide product range. About Lubrizol Corporation

The Lubrizol Corporation, a Berkshire Hathaway company, is a marketdriven global company that combines complex, specialty chemicals to optimize the quality, per formance and value of customers’ products while reducing their environmental impact. It is a leader at combining market insights with chemistr y and application capabilities to deliver valuable solutions to customers in the global transportation, industrial and consumer markets. Lubrizol improves lives by acting as an essential par tner in our customers’ success, delivering efficiency, reliability or wellness to their end users. Technologies include lubricant additives for engine oils, driveline and other transportation-related fluids, industrial lubricants, as well as additives for gasoline and diesel fuel. In addition, Lubrizol makes ingredients and additives for home care, personal care and skin care products and specialty materials encompassing polymer and coatings technologies, along with polymer-based pharmaceutical and medical device solutions.

Onkar Kanekar – Marketing Tel: +91 9833509411 Email: onkar.kanekar@lubrizol.com

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MARKETING INITIATIVE

Lubrizol, Georg Fischer and Sangir Plastics Partner to Market Corzan Industrial Systems in India

MARKETING INITIATIVE

Single-Source Automation Promises a More Flexible Future B&R and Hyundai Heavy Industries enter strategic partnership

B&R and Hyundai Heav y Industries (HHI) signed a global strategic partnership agreement to introduce B&R automation solutions across HHI’s various areas of operation, including control solutions for ship, plant and power automation that will benefit HHI’s customers in the oil and gas, shipbuilding, water treatment and other industries. More flexibility with integrated automation platform

By establishing a consistent and integrated automation platform from a macro perspective, HHI is positioning itself to respond more flexibly to unpredictable future challenges. B&R and HHI look forward to synergies in technological cooperation as well as close collaboration in worldwide sales, service, technical support and development.

About B&R

B&R is a privately owned company with headquar ters in Austria and offices all around the world. As a global leader in industrial automation, B&R combines state-of-the-art technology with advanced engineering to provide customers in virtually every industry with complete solutions for machine and process automation, motion control, HMI and integrated safety technology. With industrial fieldbus communication standards like POWERLINK and openSAFETY as well as the powerful Automation Studio software development environment, B&R is constantly redefining the future of automation engineering. The innovative spirit that keeps B&R at the forefront of industrial automation is driven by a commitment to simplifying processes and exceeding customer expectations.

Advanced technology for future challenges

B&R’s advanced technology and commitment to standards like OPC UA and IEC 61850 will help HHI meet emerging customer requirements in the areas of Industry 4.0, Smart Factory and IIoT solutions. It will also streamline compliance with the increasingly vigorous environmental regulations of the shipbuilding industry B&R will provide training and support as well as engineering and technical expertise, drawing on extensive experience gained through high-profile projects with end users in various industries around the world.

B&R Industrial Automation Pvt. Ltd B&R-Strasse 1, 5142 Eggelsberg, Austria Tel: +43 7748 6586-0 Email: press@br-automation.com www.br-automation.com

Figure: From left: Kim Dongkee (Head of Automation Solutions, HHI-EES), Choi Byeonghan (Managing Director, HHI-EES), Peter Gucher (General Manager, B&R) and Lee Yniong (Managing Director, B&R Korea) signed a global strategic part-nership agreement on automation solutions. www.oswindia.com

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MARKETING INITIATIVE

High-End Surge Protection M-LB-5000

iagnostics and modularity with an installation width of just 6.2 mm: These features are combined in the new M-LB-5000 surge protection system from Pepperl+Fuchs. By offering these features, the single -channel modules suppor t increased plant availability and optimize total operating costs. M-LB-5000 surge protection system: protection modules with diagnostics and traffic-light display as well as a separate control inter face The patented diagnostics of the M-LB-5000 with its intuitive and easy-to-read traffic-light display minimizes testing costs in accordance with EN 62305-3 and allows condition monitoring. The green light o n t h e p ro te c t i o n m o d u l e i n d i c ate s t h at t h e re i s f u l l p ro te c t i o n and sufficient operating reser ve. The yellow LED indicates that the protec tion module has reached 90 % of its lifec ycle, but the signal circuit is still protec ted. The protec tion module should be replaced w h e n m a i nte n a n ce i s n ex t p e r f o rm e d. I f t h e i n d i cato r i s re d, t h e protec tion module is permanently damaged and protec tion has been lost. The protection module should be replaced immediately to prevent damage during the nex t over voltage condition. This setup ensures that the protection modules are always replaced at the ideal time. This improves the availability of the surge protection, and therefore of the system as a whole, and at the same time minimizes m a i nte n a n ce co s t s. Th e s t at u s o f t h e p ro te c t i o n m o d u l e s c a n b e integrated into the control level via the signaling contacts of the function modules and via the Power Rail.

The modular system allows easy commissioning and maintenance using a loop-disconnect function as well as uninterrupted protection module replacement during operation. When you pull the protection module, the relevant signal circuit remains interconnected via the base module mounted on the DIN mounting rail. The disconnection process does not lead to any signal interruption, meaning that a protection module can be replaced without impairing plant operation. If the protection module is plugged in at an angle of 180 degrees, the signal circuit will be broken via the integrated isolating function. This simplifies maintenance work as well as loop checks and allows insulation tests to be per formed during commissioning or repeated testing. At 6.2 mm, the small width of the protection modules sa ves space in the switch cabinet. Disconnec t terminal blocks can be avoided: During retrofitting, existing common disconnect terminal blocks can be replaced regardless of space requirements. The traffic-light display of the protection module minimizes testing costs and allows condition monitoring Automation is our world. A Per fect application solution is our goal. A willingness to take entrepreneurial risks, a pioneering spirit, and a firm belief in their own inventive powers - these were the assets that Walter Pepperl and Ludwig Fuchs star ted out with when they opened their Mannheim radio repair shop in 1945. Their invention of the proximity switch a few years later proved their strength. It was also the star ting point in a successful histor y defined by close customer relationships as well as innovative automation technologies and procedures. Then as now, our focus is directed squarely on the individual requirements of each customer. Whether as a pioneer in electrical explosion protection, o r a s a l e a d i n g i n n o vato r o f h i g h l y e f f i c i e nt s e n s o r s - t h e c l o s e communication with our customers is what allowed us to become the leader in automation technology. Our main objec tive is combining state -of-the -ar t technologies and comprehensive ser vices to optimize our customersÂ´ processes and applications.

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NEWS

Press Release BASF launches Boron-Based Technology platform Improves refiners’ ability to increase profits with changing slates due to spot buying and variable quality crudes Offers flexibility to refiners processing moderately contaminated feedstocks BASF announced the commercial launch of BorotecTM, the newest evolution of its resid oil Fluid Catalytic Cracking (FCC) catalysts portfolio. Borotec is the latest innovation using BASF’s unique Boron-Based Technology (BBT) platform to provide mild- and moderate-resid feed FCC units more flexibility in crude selection, which results in increased yields of high-value products. A successful commercial trial has verified the ability of Borotec to improve performance, leading to higher yields of valuable products and lower bottom-of-the-barrel yields compared to competitive technologies. The improved metals tolerance feature provided by Borotec allows improved crude flexibility for refiners that increasingly engage in spot buying to maximize profits. The catalyst was developed to offer refiners optimized operation and maximized margins.“Globally, our Refining industry customers are facing an increasing number of FCC units that process contaminated feedstocks,” said Jim Chirumbole, Vice President Refining Catalysts at BASF. “Borotec has shown excellent results using the unique chemistry of boron to provide improved performance. The product will help refineries worldwide to increase production of valuable hydrocarbons, and to be more successful.” “We are excited to see this next new product development from our innovative technology platform,” said Detlef Ruff, Senior Vice President Process Catalysts at BASF. “Borotec underscores BASF’s commitment to continued innovation with the expansion of our BBT product line for the moderate-resid sector.”In 2016, BASF introduced BorocatTM to the market, the first FCC catalyst based on the BBT platform. Since then, Borocat has been successfully introduced in refineries all over the world. Borocat was designed for processing heavy resid feedstocks. Results have shown that refineries using Borocat can increase crude oil conversion while improving the sustainable utilization of a limited hydrocarbon resource.

Bell Geospace Wins Contract with Rakgas in Zanzibar Bell Geospace, has won another contract with RakGas to acquire just under 15,000 line kilometres of airborne survey data. The contract will see Bell Geospace fly FTG and Magnetics surveys in Zanzibar. With its strength and track record in high resolution gravity technology, Bell Geospace will bring a range of expert services to this new project. The outcome of the surveys will enable RakGas in its exploration efforts in this region and bring understanding of the complex sub-surface geology of these areas. The contract with RakGas includes the acquisition of 3D Full Tensor Gradiometry (FTG) data as well as www.oswindia.com

processing and interpretative services. Flights commence on 14 March 2017 from Abeid Karume International Airport in Zanzibar. B ell G eospace will use a B asler BT-67 flying at low altitude to conduc t the sur vey John Macfarlane Executive Vice President of Bell Geospace comments: “Our client relationship with RakGas is longstanding and this contract represents the next phase in our acquisition of data for the business. This is the first move into oil & gas exploration in Zanzibar and the results will be unique in developing an understanding of its indigenous resources.” The Technical Team at RAK Gas comments: “RAK Gas has applied advanced technology such as FTG surveys to a high percentage of its portfolio and licenses. RAK Gas’ strategy is to establish a working geologic model and structural framework in the initial exploration phase. The FTG survey provides a very good launching point prior to 2D and 3D seismic acquisition. While the survey time is less than conventional seismic, the other advantages are greater coverage in areas where ground operations may be too sensitive, such as densely populated villages and town sites. The two methods complement each other to improve the geologic interpretation, thereby reducing the time needed to identify the primary drill sites, provide needed time for rig planning, long lead items and with the best of circumstances, improve the success rate.”

Major Operator in Azerbaijan Renews Contract with Elite Control Systems Elite Control Systems, a leading provider of systems integration services, announced that once again a major oil and gas operator has renewed its contract with the company to provide a comprehensive process control software system and ongoing support in Azerbaijan. Elite can access the platform’s fire and gas control system remotely from its headquarters in Livingston, Scotland. As a result, the automated control systems used to operate Chirag operate smoothly, and allow production to continue without interruption. During this period, Elite Control Systems has also supplied technical guidance with regard to, for example, system upgrades and adjustments to the platform to enhance safety and efficiencies. “The renewal of this contract to continue to maintain these systems and provide around-the-clock control support for Chirag is a real testament to the long and mutually productive relationship that we share with this highly valued customer in Azerbaijan,” said Ewan McAllister, Technical Director for Elite Control Systems. “Clearly, they have confidence not only in the integrity of our software systems, but in our expertise and reliability. We look forward to working with them to ensure that Chirag continues to perform at optimum levels for years to come.”

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Vepica USA Selects Intergraph Software Solutions for Project with Meridian Energy Group Refinery will utilize Intergraph Smart 3D and SmartPlant Enterprise for design projects Vepica Group, a multi-national engineering, procurement and construction company co-headquartered in Houston, Texas, and Caracas, Venezuela, with offices in Canada, Colombia and China, has chosen the Intergraph® solutions suite for the Davis Refinery project, a high-conversion crude oil refinery to be constructed in southwestern North Dakota to serve crude oil producers and local liquid fuels and chemicals markets.Meridian Energy Group, a refinery owner, selected Vepica based on its exceptional performance in engineering and permitting support for the Davis Refinery; the significant experience of Vepica personnel; and ability to simultaneously work the project from three of its main locations to provide efficient and cost competitive solution. For the Davis Refinery project, Vepica will use Intergraph Smart® 3D work-sharing between its offices in Houston, Calgary and Caracas, as well as integration with design tools via SmartPlant® Enterprise. Vepica will use SmartPlant P&ID, SmartPlant Electrical and SmartPlant Instrumentation for the detail design as well as SmartPlant Reference Data and Intergraph Smart Materials for its entire materials management process during the initial phase.Derek Blackwood, CEO of Vepica, said, “The Intergraph suite of software has allowed us to efficiently bring together the capabilities and experience of all of our locations to deliver high-quality, ontime project deliverables to our clients at a highly competitive price, helping bring their projects to life.” Mattias Stenberg, Intergraph Process, Power & Marine president, said, “Vepica has been a user of Intergraph technology for more than 15 years, during which time it has successfully executed projects for the oil and gas industry, industrial and renewable energy sectors. We are pleased to support Vepica’s expansion using our suite of solutions, which allows them to compete with high execution standards.”

Reliance Commissions World’s Largest and Most Complex Ethane Project Reliance is pleased to announce successful and flawless completion of its Ethane Project, including commissioning of its ethane receipt & handling facilities and ethane cracking, at its Dahej Manufacturing Facility in Gujarat in a world record time of less than three years. Reliance is the first company to globally conceptualize large-scale imports of ethane from North America as feedstock for its cracker portfolio in India. The

project involved seamless integration of several elements across a complex infrastructure value chain. This includes securing ethane refrigeration capacity in the US Gulf coast; delivery of dedicated Very Large Ethane Carriers (VLECs) to carry ethane from the US Gulf Coast to the West Coast of India; construction of ethane receipt and handling facilities; laying pipelines and upgrading crackers (to receive ethane) at Dahej, Hazira and Nagothane Manufacturing Facilities. This successful start-up underlines ours ability to build world-scale capacities and infrastructure using complex technologies, such as marine transportation of cryogenic ethane, handling of ethane at (-) 90 deg.C, supply of ethane to the crackers in an energy efficient way and pump ethane from Dahej to other locations. The execution of this project at this scale and magnitude is a first in the world. The Shale Gas industry in North America has grown exponentially in the past 5 years. Consequently ethane has become one of the most competitively priced feedstock for US crackers. The supply of Ethane to our crackers at Dahej, Hazira and Nagothane will provide feedstock security and flexibility, enabling us to select the most optimal feed mix based on market conditions. This will improve the cost competitiveness of our existing crackers and enable us to optimize the portfolio in a volatile market environment.

Reliance Completes Transaction for the Sale of Its Interest in Gulf Africa Petroleum Corporation (Gapco) To Total Pursuant to the Sale agreements signed by Reliance Exploration & Production DMCC (“REPDMCC”), an indirect wholly owned subsidiary of Reliance Industries Limited (“RIL”) and TOTAL, for the sale of the entire 76% interest held by REPDMCC in the Mauritius-incorporated Gulf Africa Petroleum Corporation (“GAPCO”), REPDMCC, TOTAL and GAPCO have obtained requisite regulatory approvals, consents and successfully completed the sale transaction. GAPCO is a holding company with operating subsidiaries in Tanzania, Kenya and Uganda which are primarily engaged in petroleum product import, and trading, storage, distribution, marketing, supply and transportation of oil products in East Africa. Since the acquisition of 76% equity interest in GAPCO by REPDMCC in 2007, GAPCO has significantly grown and is one of leading petroleum marketing company in East Africa owning retail outlets as well as onshore and offshore terminals. REPDMCC’s sale of its interest in GAPCO is part of a joint transaction, wherein REPDMCC as well as the minority shareholder have sold their entire respective holdings in GAPCO for cash.

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Press Release

NEWS

Press Release Rosneft Started Drilling of Northernmost Well at Russian Shelf

EDF Energy Enters into Framework Agreement with Simmons EDECO

On April 3 Rosneft star ted drilling of the Tsentralno-Olginskaya-1 well at the Khatangsky license area. The well is the nor thernmost at the Russian Arctic shelf. President of Russia Vladimir Putin launched exploration drilling via video link-up with Rosneft Chief Executive Officer Igor Sechin who was on the shore of the Khatanga bay.

SIMMONS EDECO, a leading supplier of wellhead and valve maintenance, asset integrity solutions and onshore drilling services to the global oil and gas industry, announced that it has entered into a framework agreement with EDF Energy to maintain its Gas Storage facilities in Cheshire, England.

In his speech, Vladimir Putin emphasized the impor tance of Rosneft’s project: “We are seeing the star t of work to develop a whole oil and gas province, which preliminar y data suggest contains a vast quantity of energy resources. Horizontal drilling is a complex and high-tech operation. This is just the first well. There is much more work ahead. I would like to wish you good luck and I hope for this under taking’s success,” - the President of Russia said.

SIMMONS EDECO is providing a range of wellhead maintenance services, both routine and custom, to maximise facility operations. The programme involves installing and removing wellheads and Christmas trees, workover support, and making certain that valves are properly maintained and refurbished. In addition, SIMMONS EDECO will carry out annulus testing, and Echometering and data analysis to assess liquid levels in the well.

Rosneft Head repor ted to Vladimir Putin that the preparation for drilling had been completed in record-breaking time. “With your suppor t, we gained the right to work on the Khatanga block just over a year ago. We carried out unprecedented geological exploration work within a ver y shor t period. We completed 21 linear kilometres of seismic studies that revealed the existence of 114 promising oil and gas-bearing structures. Preliminar y estimates suggest that the Laptev Sea’s total potential geological resources could come to 9.5 billion tonnes of oil equivalent.” In repor t to the President Igor Sechin set out the priorities in the Company’s working plans at the Russian offshore: “We star ted working in the Kara Sea in 2014, ac ting on your instruc tions, and discovered a ver y impor tant field - the Kara oil and gas-bearing province. This year, after star ting on the Khatanga block, we will be drilling in the Black Sea. Nex t year, we will drill in the Barents Sea, and in 2019, we will return to the Kara oil and gas field, and will continue our work in the eastern Arc tic.” Vladimir Putin highlighted the impor tance of the development of Arctic by state -owned companies: “We have tremendous untapped offshore and coastal reser ves in the Arctic. Given the tremendous value and impor tance of these reser ves of hydrocarbons and other minerals, we have allowed only companies in which the state holds a majority stake to take par t in this work. Licenses have been accorded only to Rosneft and Gazprom. Rosneft should undoubtedly make the best possible use of these privileges.” www.oswindia.com

To achieve this, SIMMONS EDECO is using a full complement of its state-of-the-art wellhead and valve maintenance equipment, and specialist treatment products. For example, the maintenance team cleans production and wellhead valves with custom-designed “flush and grease” pumps using Fully Synthetic Liquid Valve Flush. They are then protected for the long-term by applying Fully Synthetic Valve Lubricant. “Unlike traditional clay lubricants that tend to harden in critical areas of the valve that cause it to seize up, our synthetic lubricant never hardens or washes away with production flow,” said Mark Hunt, Operations Manager for SIMMONS EDECO. “This means that valves function properly for a much longer period, saving time and money otherwise invested in expensive replacement valves.” Although SIMMONS EDECO has worked on behalf of EDF Energy, this agreement represents the first time that the company will have provided an ongoing programme of maintenance support to the French utility company. The one-year framework agreement with EDF Energy features an option to extend for an additional 12 months, as required. Already, SIMMONS EDECO has executed three re-completions and one wellhead maintenance campaign, which required a survey to be carried out with an Echometer Well Analyser utilising acoustic technology to determine the well’s liquid level depth. Before entering into this agreement, SIMMONS EDECO conducted several successful ad hoc wellhead maintenance programmes at EDF Energy Gas Storage, and refurbished several Christmas trees. SIMMONS EDECO staff is servicing EDF Energy Gas Storage from its recently expanded European headquarters in Great Yarmouth, England.

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LANXESS Successfully Completes Acquisition of Chemtura • • • •

Acquisition cleared by all required regulatory authorities Combined additives business with annual sales of approximately EUR 2 billion is a further strong pillar in the group Increased footprint in the North American growth region Zachert: “This acquisition is another major step in our realignment process.”

Specialty chemicals company LANXESS has successfully completed the acquisition of U.S. company Chemtura, one of the world’s leading suppliers of flame retardant and lubricant additives, earlier than originally expected effective April 21, 2017. All required regulatory authorities have cleared the transaction. Already in February 2017, Chemtura’s shareholders voted to approve the acquisition. With a total enterprise value of EUR 2.4 billion, Chemtura is the largest acquisition in the history of LANXESS. The acquisition significantly expands the company’s additives portfolio and makes LANXESS one of the world’s leading players in this growth field, which is one of the most attractive in the specialty chemicals industry. In addition to additives, Chemtura’s urethanes and organometallics businesses will be integrated into the LANXESS portfolio. The Cologne-based specialty chemicals company will absorb some 2,500 Chemtura employees at 20 sites in 11 countries worldwide. The former Chemtura businesses generate annual sales of approximately EUR 1.5 billion. “The acquisition of Chemtura is another major step in our realignment process and a significant milestone in our course of growth. The ‘new’ LANXESS is increasingly taking shape. The expansion of the additives business gives LANXESS an additional strong pillar. In its new set-up and with an even more balanced portfolio, the company will be much more stable and profitable. At the same time, Chemtura considerably strengthens our presence in the North American growth region,” said Matthias Zachert, Chairman of the Board of Management of LANXESS AG. “We will now focus our energy on rapidly and smoothly integrating the new businesses and employees, as well as on optimally serving our new and existing customers.”Through the acquisition LANXESS increased its footprint in North America. In this region, the company is now represented at 24 production sites (previously 12) and employs approximately 2,800 staff (previously 1,500). The region’s share in global sales increases from approximately 17 percent to approximately 21 percent. The expected annual synergy effects from the transaction amount to approximately EUR 100 million with realization targeted until 2020. The acquisition of Chemtura is already expected to be accretive to LANXESS’s earnings per share in the first full fiscal year after closing. LANXESS financed the acquisition through two corporate bonds and a hybrid bond as well as cash. The bonds were successfully placed at attractive terms already in 2016. Additives: a further strong pillar of LANXESS Effective immediately, LANXESS will combine its entire additives business within the new Specialty Additives segment. This segment is an additional pillar in the LANXESS group, with annual sales of approximately EUR 2 billion and

some 2,900 employees worldwide. The segment comprises the new Additives and Rhein Chemie business units. The combined business with flame retardant and lubricant additives is anchored in the Additives business unit, which is headed up by Anno Borkowsky. The Rhein Chemie business unit, headed up by Philipp Junge, comprises the existing rubber and color additives businesses of LANXESS. LANXESS strengthens profitable flame retardant and lubricant additives business LANXESS is significantly strengthening its competitive position in the area of lubricant additives and synthetic lubricants for industrial applications. “We are now one of the leading suppliers of industrial lubricants and possess an integrated value chain,” explained Anno Borkowsky. LANXESS expects medium-term growth of 3 to 4 percent annually for the industrial lubricant additives market, driven primarily by steadily increasing demands placed on lubricants as regards performance capability and environmental compatibility. LANXESS is also significantly expanding its market position for flame retardant additives and now also operates the former Chemtura businesses with brominated flame retardant additives, bromine and bromine derivatives. Due to their high effectiveness, these substances are used among others in the construction industry and are an ideal complement for the existing LANXESS business with phosphorus-based flame retardant additives. “Flame retardance requirements are continuously rising due particularly to the trend toward energy-efficient construction. This acquisition will also make us one of the world’s leading suppliers of flame retardant additives. As of today, we can offer our customers an array of complementary brominated and phosphorus-based products from a single source,” said Borkowsky. LANXESS also expects medium-term annual growth rates of 3 to 4 percent for the area of flame retardant additives. New fields of business for LANXESS: urethanes and organometallics The urethanes business is new for LANXESS. Effective immediately, it will be placed within the newly formed Urethane Systems business unit headed up by Markus Eckert. The product range includes hot- cast prepolymers, special aqueous urethane dispersions and polyester polyols. These are components of specialty polyurethanes, used primarily in the construction, mining, oil, gas, athletic equipment and electronics industries. These plastics are used, for example, to manufacture rollers for conveyor belts or inline skates. Urethane Systems will join the existing High Performance Materials business unit of LANXESS to form the new Engineering Materials segment. Also new in the LANXESS portfolio is the organometallics business. These are chemical compounds that are used, among other applications, as catalysts in polymers production or for the synthesis of fine chemicals and pharmaceuticals. With immediate effect, this business is being managed in the existing Advanced Industrial Intermediates business unit of LANXESS.

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Press Release

NEWS

Industry News S N Subrahmanyan to be L&T’s MD and CEO from July 1

Mr. Subrahmanyan

Larsen & Toubro chairman AM Naik will step down from his executive role to be the non-executive chairman of the engineering conglomerate, while S N Subrahmanyan will take over as its chief executive.

The board elevated Mr Subrahmanyan, currently the deputy managing director and president, to the position of managing director and CEO with effect July 1.

Dr P Chandrasekaran takes over as Director (Exploration and Development) at Oil India Limited Dr P Chandrasekaran has taken over as Director (Exploration and Development) of Oil India Limited (OIL), India’s second largest National Exploration & Production Company effective Dr P Chandrasekaran from 1st April 2017.

Deal Swap between GAIL and US LNG It was apprehensive that India’s largest gas marketing company may suffer losses as the price of gas it sourced was linked to the US natural gas price; the landed price would be commercially unviable in India with the availability of cheaper options following a fall in global LNG prices. But, GAIL may be able to swap nearly one-third of the total US gas contracts. The balance would be sold in the local spot market, which generates a marketing profit. Of the 5.8 MTPA of LNG GAIL plans to buy in the next few years, almost 2 MTPA will be swapped with Gunvor, Shell and Denmark-based Deng Energy -deals that would let GAIL sell gas in India at a small profit. The combined impact of swap arrangements with Gunvor and Deng, and 1-million tonne long-term contract with Shell and some portfolio investors may lower cost for GAIL.

Cabinet Agrees on Four GST Bills The Union Cabinet chaired by Prime Minister Narendra Modi has approved the following four GST related bills: 1.

The Central Goods and Services Tax Bill 2017 (The CGST Bill): for levy and collection of tax on intra-state supply of goods or services or for both by the Central Government. The Integrated Goods and Services Tax Bill 2017 (The IGST Bill): for levy and collection of tax on inter-state supply of goods or services or both by the Central Government.

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The Union Territory Goods and Services Tax Bill 2017 (The UTGST Bill): for levy on collection of tax on intra-UT supply of goods and services in the Union Territories without legislature. Union Territory GST is akin to States Goods and Services Tax (SGST) which shall be levied and collected by the States/Union Territories on intra-state supply of goods or services or both.

The Goods and Services Tax (Compensation to the States) Bill 2017 (The Compensation Bill): for compensation to the states for loss of revenue arising on account of implementation of the goods and services tax for a period of five years as per section 18 of the Constitution (One Hundred and First Amendment) Act, 2016.

L&T Wins USD 253 Million Oil and Gas Project L&T Hydrocarbon Engineering (LTHE), a wholly owned subsidiary of Larsen & Toubro (L&T), has been awarded a USD 253 million oil and gas contract. The firm beat international competition to win the project at the Neelam oil field, situated off the west coast of India. The contract was awarded by the Oil & Natural Gas Corporation (ONGC), as part of its strategy to enhance the field life of the oil field and increase recovery potential. The scope of LTHE’s operation will include the construction of a process platform with gas processing and compression facilities, plus three new well-head platforms, a 32 km pipeline, clamp-on on three existing platforms and modification work on eight existing platforms. The work is expected to be completed by April 2019, and is granted as an EPCIC (engineering, procurement, construction installation and commissioning) project.

ONGC to Increase Investments in Deepwater Oil and Natural Gas Corporation (ONGC) intends to increase its investment in the deepwater KG-DWN-98/2 (KG-D5) block, which lies off the eastern coast of Andhra Pradesh State. The Tapas Kumar Sengupta company, which committed 340.1 billion rupees (USD 4.84 billion) to bringing 11 oil and gas discoveries in its Bay of Bengal block into production, now plans to invest another 215.3 billion rupees (USD 3.01 billion) to develop the ultra-Deepwater UD-1 find. “We have submitted to Directorate General of Hydrocarbons a declaration of commerciality for the UD-1 find. We will submit a final investment plan, called the field development plan, by end-2017 and hope to bring the discovery to production by 2022-23,” said Tapas Kumar Sengupta, Director- Offshore, ONGC.” ONGC now intends to drill nine wells at UD-1 in order to produce a peak of 19 mcm per day of gas. The nearly 7,300-square km KG-D5 block, which is adjacent to Reliance Industries Ltd’s KG-DWN-98/3 (KG-D6) acreage, has been broadly categorised into the Northern Discovery Area (NDA), comprising 11 finds, and the Southern Discovery Area (SDA), which contains UD-1. These discoveries have been further divided into Cluster-1 and Cluster-II in NDA and Cluster-III in SDA.

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ONGC to Develop India’s Deepest Gas Discovery Oil and Natural Gas Corporation Limited (ONGC) will invest over Rs 215 Billion to develop India’s deepest gas discovery by 2022-23. ONGC had invested Rs 340.12 Billion to explore oil and gas in Bay of Bengal in 2016. The company plans to invest another Rs 215.28 Billion in oil exploration. The company is aiming at output of 19 million standard cubic metres per day through drilling of nine wells on the discovery.

IOC- First in India to Buy Hibernia Crude from Suncor Indian Oil Corporation (IOC) became India’s first refiner to buy light sweet Hibernia crude from Canada’s largest oil company, Suncor. Suncor sold the 1 million barrel cargo of Hibernia crude to IOC on a free on board basis. Separately, IOC has also bought its first Russian Urals crude cargo in about a year in another tender. In 2016, state-refiners like IOC were given the freedom to draw up the crude import strategies that would allow them to make swift gains from changing market dynamics.

Refining Company Limited for USD 56.2 million as a part of global portfolio review. BP was the largest shareholder in New Zealand’s only oil refiner before it sold the stock in a block trade. “BP’s reduction in shareholding does not affect the existing contractual arrangements between Refining NZ and BP, including the processing agreement,” according to a statement from New Zealand Refining.

Russia to Increase Its Gasoline Refining Capacity Five Russian refineries are expected to finish upgrades of their gasoline production units by 2017, with the new capacity potentially allowing Russia to boost exports of high-octane gasoline. The high-octane gasoline production in Russia will have the potential to increase by up to 4.5 million tonnes a year. Russian refineries produced a total of 38.3 million tonnes of high-octane gasoline in 2016, of which almost 35 million tonnes were consumed domestically, while the remainder, or 3.35 million tonnes, was exported.

India to Supply Gasoil via Rail to Bangladesh India has agreed to supply 2,200 mt/month of 0.035% sulfur gasoil from the Numaligarh refinery to Bangladesh via rail for 15 years. Bangladesh Petroleum Corporation (BPC) has agreed to pay a premium of USD 5.50/b to Mean of Platts Arab Gulf gasoil assessments on a Cost and freight (CFR) basis for the cargoes. The pipeline will initially carry around 300,000 mt/year of gasoil before ramping up gradually to 1 mmt/year. Gasoil demand is around 1.1 mmt/year in 16 districts of northern Bangladesh. The route for the 130 km pipeline has been finalized and will go via Panchagarh, Nilphamari and Dinajpur in Bangladesh to storage tanks at Parbatipur. Only 5 km of the pipeline is in India.

India Railways to Buy Power from RGPPL: Piyush Goyal “Railways has agreed to continue to purchase 500 MW power from RGPPL power plant from April, 1, 2017 for a period of five years,” Power Minister Piyush Goyal said in a written reply to Lok Sabha. Indian Railways has agreed to continue electricity Piyush Goyal purchase from Ratnagiri Gas and Power Pvt Ltd (RGPPL), commonly known as Dabhol project, for a period of five years beginning April 1.

Indian Government Looking Forward to Join Asian Grouping

China’s Sinopec Buys Stake in Chevron Corp China’s Sinopec has agreed to pay almost USD 1 billion for 75 percent stake in Chevron Corp’s South African assets and its subsidiary in Botswana, securing its first major refinery on the continent. The remaining 25 percent of the South African assets will continue to be held by a group of local shareholders, in accordance with South African regulations. China Petroleum and Chemical Corp, or Sinopec, Asia’s largest oil refiner, said the assets include a 100,000 barrel-per-day oil refinery in Cape Town, a lubricants plant in Durban as well as 820 petrol stations and other oil storage facilities. They also include 220 convenience stores across South Africa and Botswana.

BP to Cut-up Stake in Refining NZ BP Plc has sold around half of its (roughly 20-percent) stake in New Zealand

To import liquefied natural gas (LNG), Ministry of Petroleum and Natural Gas has shown interest in joining an elite consortium of China, South Korea and Japan. China National Offshore Oil Corporation, Japan’s JERA and South Mr.Dharmendra Pradhan Korea’s Korea Gas Corporation, signed MoU (memorandum of understanding) to discuss opportunities of collaboration in the LNG business. India and China are the biggest consumers in the region and the country will be keen to be part of the consumer-centric common strategy, said, Petroleum Minister, Dharmendra Pradhan. He also added that, he is not ruling out India joining the consortium. Asian consumers will have more flexible supply contracts and will have cheaper LNG, by the strategic move of the group together. In LNG storage, procurement and shipping, the three countries are also planning to co-operate in upstream projects.

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NEWS

Industry News

NEWS

Industry News 40-45 MMSCM Recoverable Established in Tripura

Gas

Reserve

The Oil and Natural Gas Corporation (ONGC) has established a recoverable reserve of 40-45 Million Metric Standard Cubic Meter gas (MMSCM) in Tripura. “So far, we have drilled 220 wells of which more than 100 wells are operational. Four rigs were set up and four more rigs are being set up in different parts of the state. A total of eight rigs would be operational in two months,” said V P Mahawar, Director- ONGC.

BPCL to use Isomerization and Dividing Wall Technology GTC Technology has provided its low-temperature Isomalk-2 process technology for the successful start-up of a light naphtha isomerization unit at the Bharat Petroleum Corporation Ltd. (BPCL) refinery in Mumbai, India. The unit will produce an isomerate gasoline blend stock component. The overall process includes naphtha hydro-treating and fractionation section, isomerization section and a first-of-a-kind GT-TDWC SM (Top Dividing Wall Column) installation. SM

Oil Majors in India to Invest Rs 900 Billion on Fuel Upgrade by 2020 “The oil companies have spent more than Rs 280 billion after 2010 which is in addition to Rs 350 billion that was already spent till 2010. They will further spend Rs 280 billion by 2020 for meeting the BS-VI M r. K D Tr i p a t h i specifications which will take the total investment to Rs 900 billion only on fuel upgradation programme itself,” said K D Tripathi, secretary, ministry of Petroleum and Natural Gas at the launching of BS-IV grade fuels across the country “Our fuel quality standards have been gradually tightened since the mid 90’s. Investing on fuel quality improvement was critical to the success of the vehicular emissions programme. Our refineries have achieved the target with the introduction of advanced technologies with significant capital expenditure”, he added.

Petronas to Invest USD 150 Million to Manufacture Lubricants in India Malaysian oil major Petronas plans to invest USD 150 million, in India’s lubricant market. Petronas Lubricants International (PLI), manufacturing and marketing arm of the Malaysian national oil corporation, will spend the money to set up a plant with 110 million litres capacity in Patalganga, on the outskirts of Mumbai, and a technology centre for motorcycle engine oil, and invest in branding activity in the country www.oswindia.com

“Currently, the 10th largest lubricant brand in the world, India can be a key engine for growth in future for Petronas,” said Giuseppe D’Arrigo, group CEO, Petronas Lubricant International. “We have been amongst the fastest growing brand globally. Even in India we hope to do better than competition,” added D’Arrigo. He said immediate focus is on operationalising the new factory, which is expected to go on stream in the first quarter of 2018, and getting the brand’s ‘route to market’ right. The company may adopt an FMCG-style marketing strategy. The new plant in India is expected to attain full capacity in three to four years.

India, Malaysia Sign USD 36-Bn Investment Proposals Companies such as Adani Ports, Andhra Pradesh Gas Distribution Corporation and Natco Pharma signed 31 memoranda of understanding (MoUs) with Malaysian companies and industry bodies to facilitate investments worth USD 36 billion in the oil and gas, infrastructure and engineering sectors in both the countries.

iSURVEY Signed Contract with Maersk Oil Danish Business Unit iSURVEY has been awarded a survey and positioning contract with Maersk Oil Danish Business Unit which will commence from March 2017. It is a four-year contract with an option to extend by one 12-month period. According to the contract, iSURVEY will support Maersk Oil Danish Business Unit with rig move operations in the Danish sector of the North Sea. The contract may also involve the mobilisation and demobilisation of a rig outside the Danish Sector, as well as potential rig positioning services over a subsea well.

MoU between Total and Pavilion Energy Total Marine Fuels Global Solutions and Pavilion Gas signed a Memorandum of Understanding (MoU) on LNG bunkering cooperation in Singapore. Under the MOU, Pavilion Gas, a wholly-owned subsidiary of Pavilion Energy, will supply LNG as a bunker fuel to Total Marine Fuels Global Solutions. Total is associate in charge of worldwide bunkering activities, for LNG deliveries to its marine fuel customers in the port of Singapore. The parties may explore further cooperation in logistics for LNG bunkering activities.

Shell sells Kapuni Field to Todd Shell New Zealand to dissociate its New Zealand upstream assets, by selling the 60-year-old Kapuni onshore oil and gas field to its joint venture partner in the field, locally owned Todd Energy. Todd will hand over its 50 per cent interest in Shell Todd Oil Services, from the Maui and Pohokura fields, offshore Taranaki.

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EVENTS DIARY

events diary ARC’s Fifteenth India Forum: Industry in Transition: Realizing the Digital Enterprise

14th Moscow International Oil & Gas Exhibition Date: June 27-30, 2017

Date: July 6-7, 2017

Venue: Moscow

Venue: Le Meridien Hotel, Bangalore

Event:

Event: In today’s marketplace innovation is the buzzword, and this innovation is not confined to just product changes - it encompasses innovation at all levels of the value chain from the shop floor to the end user. It is about becoming collaboratively networked enterprises, managing dispersed centers of technology, engineering, production, and resources. Intelligent connected products, along with network communications, software, and analytics now enable manufacturers to improve uptime and optimize operating performance. This is the age of the Digital Enterprise.

MIOGE is Russia’s largest international exhibition of oil and gas

Attend ARC’s 15th India Forum to gain insights into innovative technologies and solutions in a smart, connected and increasingly digitalized world.

exposure at MIOGE.

equipment and technologies. The exhibition has been taking place since 1993. The exhibition’s technical programme attracts a large number of oil and gas industry professionals, leading companies, as well as Russian and international industry associations. Russian and international manufacturers and suppliers of oil and gas equipment and technologies, as well as oil service companies interested in using effective tools to directly attract new customers from oil and gas producing regions of Russia and the CIS can have a good

Contact details: ITE Moscow 3, bldg. 2, Verkhnyaya Krasnoselskaya, 107140 Tel: +7 (499) 750-08-

For details contact: G. Ganapathiraman Country Manager ARC Advisory Group, Bangalore Tel: 080-25547114 ramang@arcweb.com

Oil & Gas World Expo 2018 Venue: Mumbai

ADIPEC 2017 Date: November 13-16, 2017 Venue: Abu Dhabi Event: The Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) is one of the world’s most influential events for the oil and gas industry. As a premium exhibition platform ADIPEC enables professionals from around the world to do business and grow. Each year, ADIPEC provides one of the most important channels to do business and exchange information, attracting Energy Ministers, global CEO’s and leading decision makers across the 4 days of business discussions and knowledge exchange. Contact details: Nour Soliman DMG Events Email: noursoliman@dmgeventsme.com Tel: +971 2 697 0515

Event: CHEMTECH Foundation will organise the 8th edition of Oil & Gas World Expo 2018 from March 1-3, 2018 in Mumbai, India. The international exhibition and conference aims to connect, discuss and comprehend the views of leaders, policy makers, regulatory authorities, and service providers of the Indian and Global hydrocarbon industry. The expo will provide a platform to showcase innovative technologies and services, encompassing current and future trends in the entire value chain of hydrocarbon industry ranging from upstream to midstream and downstream. For details contact: Jasubhai Media PVt Ltd 3rd floor, Taj building, 210 D. N. road, Fort Mumbai- 400001, Maharashtra India Tel: 022-40373636 Fax: 022-40373535 Email: conferences@jasubhai.com Web: www.chemtech-online.com

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BOOKSHELF

The Moral Case for Fossil Fuels Author: Alex Epstein Publisher: Portfolio Hardcover: 256 pages About Book: Author Alex Epstein debates on usefulness of the fossil fuels against the ongoing norms of risks and side effec ts of the fossil fuels in his book- The moral case for fossil fuels. For decades fossil fuels have been an impor tant source of energy and today the alternative sources are taking their place. The author gives a new perspec tive towards impac t of fossil fuels in our economy and environment.

Environmental Issues Concerning Hydraulic Fracturing Volume 1 (Advances in Chemical Pollution, Environmental Management and Protection) Editors: Kevin Schug, Zac Hilenbrand Publisher: Academic Press; 1 edition (November 15, 2017) Paperback: 300 pages About Book: Environmental Issues Concerning Hydraulic Fracturing, Volume One captures the state-of-the-art of research currently pursued to evaluate the potential impact of unconventional gas and oil gas extraction processes. It explores a wide breadth of emerging and state-of-the-art technologies used to study the potential environmental impact and various processes in the massive industrial process of shale exploration and resource extraction Covers a wide breadth of emerging and state-of-the-art technologies Includes contributions from an International board of authors Provides a comprehensive set of reviews, covering the potential impact of unconventional gas and oil gas extraction processes.

Ten-Gallon Economy: Sizing Up Economic Growth in Texas Editors: Pia M. Orrenius, Jesús Cañas, Michael Weiss Publisher: Palgrave Macmillan Hardcover: 248 pages About Book: The Ten-Gallon Economy features Texas’ economic growth that has over taken the US over the past quar ter centur y. The book deliberates on regional economic growth research, tax and banking institutions, booming energy and expor t sectors, pulsating labour market, mounting demographics and human capital, and growing border economy at Texas. Ten-Gallon Economy scrutinises the people, their socio-economic conditions, energy, and non-energy components of the state’s economy in the past, present, and future. The book is a good read to understand how the state has reached so far and the road for ward.

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Offshore World | 54 | April-May 2017