Incorporating news from Projects Oil, Gas and Petrochemical database and Your Industry News - Offshore Europe edition 2013
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Features Dealing with an Independent Scotland Page 4
Future Technologies Page 10 Future of the North Sea Page 16
Examining the potential in international markets Page 22
Piper Alpha, an accident that changed the industry page 30
MAKING DRILLING RISERS HAPPEN. Claxton has been supplying risers for over two decades and offers an unrivalled selection of connection, pressure, tensioning and complete system configurations. Discover more at: www.claxtonengineering.com/risers Risers | Decommissioning | Structures
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Welcome
Features
4 Dealing with an Independent Scotland
16 Future of the North Sea - The next 50 years
30 Piper Alpha - an accident that changed the industry Project News 6 20 34 34 38 40 42
EUROPE AFRICA SOUTH AMERICA NORTH AMERICA OCEANIA ASIA MIDDLE EAST
In our quarterly magazine, we will examine the hottest subjects currently active within the oil, gas and petrochemical industries.
10 Future technologies in oil exploration and production
22 Examining the potential in international markets Contents 12 Providing a High-pressure
Drilling riser in Deep water 14 Bowtech’s Products deliver 24 Mozambique: playing with the big boys 25 Corrosion - the creeping menace 32 Managing the risks 36 Breaking the ice with new products 45 Interview with Nick Michaelson of Silver Fox
By collating the resources of ProjectsOGP and Your Industry News, we bring you the most up to date and in depth data on the market. Inside this issue, we present the information and updates of projects you cannot afford to miss. In this special edition we will be looking at Scottish independence, future technologies, international markets and the next 50 years of North Sea Oil. We also celebrate 40 years of history in North Sea Oil.
Editorial team: Ioannis Tzelepis, Neda Djahansouzi and John Morrison Design and production: Neil Watson Advertise: e: sales@redmistmedia.com t: +44 (0) 1224 582902 ProjectsOGP Magazine is published by: Red Mist Media Ltd Interkab House, Links Place Aberdeen, AB11 5DY, UK t: +44 (0)1224 582902 e: info@redmistmedia.com w: www.redmistmedia.com While every care is taken to provide accurate information, we cannot accept liability for any errors or omissions, no matter how they occurred. Authors’ opinions are not those of the publishers. No part of this publication can be reproduced without prior permission of the publishers.
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Dealing with an Independent Scotland
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By Uisdean Vass, an Oil and Gas Partner in the Aberdeen office of UK law firm Bond Dickinson
When Offshore Europe returns to Aberdeen in 2015 it may be to a very different Scotland. In almost exactly a year, on September 18, 2014, the Scottish people will vote on whether they wish to remain part of the United Kingdom or whether they wish to be an independent country. Whatever the decision, change is coming. For example, under the Scotland Act of 2012, the Scottish Government will acquire significant new tax raising powers effective 2017. That before a vote is cast. In the event of a “No” vote, further devolution of power is likely, according to the main Unionist parties. The status quo today seems unlikely to remain constant. In the event of a “Yes” vote, there are a number of
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major issues which could have a significant impact on the exploration and production (E&P) sector and by extension the oil and gas service sector. Perhaps one of the most important is where the seaward boundary between Scotland and England would lie. The issue is particularly live off Scotland’s east coast, in the North Sea. The precise demarcation line which would determine the Scottish Continental Shelf (SCS) would have to be decided by negotiation. Broadly
I www.yourindustrynews.com I intelligent online marketing I www.projectsogp.com I online market intelligence speaking there are a number of potentially competing legal pointers for the negotiators, such as the current definition of the Scottish sector for legal purposes, the (different) current delimitation of the Scottish sector for fishery management purposes and international principles of equidistance. An added dimension is that Scotland’s three island councils are presently campaigning for greater island powers. A campaign by Shetland, Orkney and the Western Isles is underway to achieve increased control of the seabed around their shores, new national grid links to export renewable energy to the mainland and recognition of the islands councils status in a new Scottish constitutional settlement. They see this as a once-in-a-lifetime opportunity not to be missed. Would any such settlement change the allocation of oil revenues in the North Sea?
production sharing contracts (PSCs) under which the government shares in the profits, with different volume and price indicators affecting profit share. It would be necessary to “grandfather” the rights of existing UKCS licensees so all prior awards would be unaffected. Beyond the vital E&P sector there are many other important issues for the broader oil sector, such as what is going to happen to corporate tax and individual tax? We are in the middle of a skills shortage and if there was to be a sharp rise in personal tax we might see highly qualified individuals move on. On the other hand, lower corporate tax (if it happened) would be attractive to industry. The industry would like to see currency stability. We also have to make sure that our excellent Scottish educational cluster continues to thrive. We don’t know whether it will be a “Yes” or “No” next year but we do know that whatever the result there is going to be deeper Scottish autonomy which might well mean the end of the Barnett formula and more tax-raising powers in Edinburgh. As of this time, there are few Unionist voices calling for a Scottish oil and gas jurisdiction and allocation of oil and gas revenues to Edinburgh. In the event of independence, the end of Barnett might result in the loss of a per capita advantage but that could be counterbalanced by increased oil revenues. Any fiscal analysis is dependent on the price of oil and there could be a major difference between Scotland in a time of $80 oil and Scotland in a time of $150 oil. We all know how rapidly oil prices can change.
“Where will the money come from for the oil fund?” The establishment of an oil fund is dear to the heart of the SNP”
Decommissioning is another major issue, particularly for the oil company licensees. The Scottish Government has indicated it would take on its share of the UK’s £20 billion pledge to help with the cost of decommissioning North Sea installations. However it is arguing that as successive UK governments have spent the tax revenues from the North Sea they have a moral and legal obligation to be responsible for decommissioning. But even if the Scottish Government is ultimately willing to underwrite these costs - will it be able to do so? Could it afford to guarantee these payments because they could in some years run into billions of pounds? But would it be fair for the UK to derive the tremendous benefits of the oilfields of the 1970s and 80s, including giants like Brent and Forties, and leave Scotland to pick up the mess? Another financial question is “Where will the money come from for the oil fund?” The establishment of an oil fund is dear to the heart of the SNP.
The nature of the regulatory regime on the Scottish Continental Shelf and how it would be administered is another key point. An independent Scotland would inevitably go on to fashion a separate Scottish petroleum regulatory jurisdiction. The administration of the system would presumably be based in Aberdeen. There would need to be close collaboration with DECC. If there is a “Yes” vote in September 2014, it will take one or two years before independence happens so there is some leeway to work out these sort of challenges. What would the Scottish E&P regulatory system look like? Would we continue to use a licence system? This is probable. However, an alternative would be to use
We need to get to grips with the implications of all these issues because a new Scotland is emerging. Its form is not yet clear. With the additional prospect of a looming UK-wide in-out referendum on the EU, we are facing years of constitutional turbulence. I sense that people are getting used to that volatility, and may be growing less risk-averse. The approach of oil industry professionals is likely to be that the constitutional position is one for the Scots to resolve. The oil sector has the strength, skills, technology and experience to prosper, no matter what happens.
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Mariner and Bressay Fields Aker lands Mariner job
Aker Solutions has been awarded a contract to deliver the drilling equipment package for the production platform which will be stationed at Statoil’s Mariner oilfield in the UK North Sea. The contract was awarded by Daewoo Shipbuilding & Marine Engineering and includes a complete topsides package, with Aker also providing necessary support services at Daewoo’s shipyard in South Korea and during the offshore installation phase. The contract also carries an option for Aker to supply an identical drilling equipment package for the production facility at the nearby Bressay field, which is also operated by Statoil.
The rig will be based on the proven Gusto MSC CJ-70150 design, with enhancements that include a number of features that are designed to further improve the rig’s operating capability. The rig was designed to optimise health, safety and environmental focus and is uniquely suited for operations over a very large platform or in a subsea configuration in water depths of up to 150 metres in the Norwegian sector. Once delivered, it will be one of the most versatile jackup rigs in the industry.
Subsea 7 secures US$170 million Mariner contract
The delivery of equipment for the Mariner contract is expected to be complete in 2015.
Statoil has awarded Subsea 7 a US$170 million contract for the Mariner oil field in the UK North Sea.
Noble receives US$655 million contract award for new ultra-high specification jackup to be constructed for Mariner project
The scope of the contract includes the engineering, procurement, installation and construction of 39 kilometres of rigid flowlines and flexible riser systems, together with associated subsea structures, protection systems and tie-ins.
Noble Corporation has been awarded a drilling contract by Statoil for a newbuild ultra-high specification jackup for use in the United Kingdom sector of the North Sea. The initial contract is for four years and is anticipated to commence during the third quarter of 2016. The total estimated value of the four year primary term contract is US$655 million, including mobilisation. The ultra-high specification jackup is an enhanced version of Statoil’s “Cat J” specifications and will be designed to operate in water depths of up to 150 metres in harsh environment conditions, with a maximum total drilling depth capacity of 10,000 metres. The rig will be equipped for operations in harsh environments and capable of deploying either a surface or subsea blowout preventer when drilling wells in these challenging environments.
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Noble is in the final stages of negotiating a contract for the construction of the new jackup and expects delivered costs to be approximately US$690 million, including project management, spares and start-up costs, but excluding capitalised interest.
Project management and engineering work will be carried out from Subsea 7’s offices in Stavanger, Norway and Aberdeen, UK. Offshore activities are scheduled to commence in 2015 and to be completed in 2016.
KCA Deutag inks two new deals in the North Sea worth US$42 million KCA Deutag has won two new contracts for work in the North Sea, in addition to signing a global master services agreement. The two contracts, which have been valued at US$42 million, were awarded to KCA’s rig design engineering
I www.yourindustrynews.com I intelligent online marketing I www.projectsogp.com I online market intelligence specialist RDS by Daewoo Shipbuilding & Marine Engineering. The first contract, which will run for 29 months, is for detail design and follow-on engineering for Statoil’s Mariner platform drilling facilities. The second contract is for nine months and involves front-end engineering design work on the Bressay platform, which is also operated by Statoil.
EMAS AMC lands US$126 million floater installation contract from Statoil
EMAS AMC has been awarded a transport and floater installation contract for two floating storage units (FSU), with an option for a third from Statoil, for their Heidrun and Mariner fields. The contract is valued at approximately US$126 million, including options. The work scope for all three projects consists of the pre-installation of mooring systems, followed by the transport, hook-up and installation of the FSUs in their respective fields. The projects will be managed out of EMAS AMC’s Oslo office. The Heidrun field located off Norway’s west coast in a water depth of around 350 metres, came on stream in 1995 and as of the end of 2012, it was estimated to have reserves of some 40.1 million cubic metres of oil, 31.3 billion cubic metres of gas and 1.7 million tonnes of natural gas liquids. Offshore operations by EMAS AMC are expected to begin in mid-2014. The Mariner field, one of the largest developments in the North Sea, is located off the UK Continental Shelf (UKCS) in a water depth of 110 metres, and is expected to produce some 55,000 barrels of oil per day over the plateau period from 2017 to 2020. Offshore operations by EMAS AMC are expected to begin in mid-2015.
ShawCor secures US$30 million contract to provide pipe coating services for the Edvard Grieg project in the North Sea
ShawCor’s pipe coating division, Bredero Shaw, has received a contract with a value of approximately US$30 million from Statoil to provide pipeline coatings for the Edvard Grieg Oil Pipeline project and the Utsira High Gas Pipeline project. These pipelines will transport oil and gas from the Edvard Grieg and Ivar Aasen fields. The gas will be transported to St. Fergus through a tie in of the Utsira High Gas Pipeline to the Sage system and the oil will then be transported to Sture, Norway, through a tie in of the Edvard Grieg Oil Pipeline to the existing Grane Oil Pipeline. This contract involves coating approximately 98 kilometres of 16 inch pipe and 46 kilometres of 29 inch pipe with three layer polypropylene anticorrosion coating, internal flow efficiency coating and concrete weight coating. Coating will commence during the fourth quarter of 2013.
ABB to power Dana Petroleum’s FPSO in a deal worth US$20 million ABB has been awarded an oil and gas contract worth US$20 million for providing power and automation technologies to a floating production, storage and offloading (FPSO) vessel built by the Chinese shipyard COSCO Nantong for Dana Petroleum. The contract was signed in the second quarter of 2013. ABB’s delivery will contribute to efficient and safe operations, and reliable power distribution on board. The FPSO will have Sevan Marine’s characteristic cylindrical design and will be located on the Western Isles field on the UK Continental Shelf, 160 kilometres east of the Shetland Islands. ABB’s automation delivery comprises safety and automation systems, information management system, condition monitoring system and operator training system. Most of the power equipment is designed into an integrated and compact concept, including 11 kilovolt and 690 kilovolt switchgear, transformers, high voltage and low voltage variable speed drives and uninterruptible power supply. ABB will deliver 16 different telecommunications systems, among them public address system, entertainment, meteorological and a global maritime distress and safety system. ABB is also responsible for design, engineering, installation, commissioning and project management. The FPSO will be tied to subsea installations on 170 metres depth on the Harris and Barra offshore fields. The production is planned with at least five production and four water injection wells and will start in 2015, with an expected output of 40,000 barrels of oil per day, exported through shuttle tankers.
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Centrica awards US$45 million North Sea helicopter contract
support for the operator under the deal that extends an existing three year contract to December 2015.
Centrica Energy and Centrica Storage Ltd. have awarded CHC Helicopter a three-year contract for helicopter services in the North Sea. The US$45 million contract has options for a two-year extension. In the southern North Sea, CHC will operate an AW139 aircraft out of Humberside Airport on the English east coast from November 2013. This will support Centrica’s offshore activities, including the York and Rough platforms, as the operator relocates all its flight operations from Great Yarmouth.
GE secures US$147 million EPC contract for Statoil’s Snohvit field
GE Oil & Gas has been awarded a US$147 million engineering, procurement and construction (EPC) contract by Statoil. Under the contract, GE will supply subsea production and injection equipment for Statoil’s Snøhvit carbon dioxide (CO2) injection project, designed to provide a robust CO2 solution. The CO2 is naturally present in the reservoir and is produced with natural gas at the field. The CO2 is separated from the gas onshore before it is pumped back to the reservoir via a dedicated pipeline. The new CO2 injection facilities have been designed to accommodate Statoil’s need for additional injection capacity over the lifetime of the field. For the project, GE will supply the Norwegian company with a subsea system enabling both injection and production wells. Delivery of the equipment is planned to take place during the second quarter of 2015. GE will manufacture the trees at its Aberdeen facility and the control systems at the company’s Nailsea, U.K., facility. Meanwhile, the subsea template and manifold components will be built in Norway. GE will manage the EPC project from its Bristol, UK offices.
Amec US$170 million contract extension on Gaupe Field secured
Amec has secured a US$170.5 million (£110 million) contract extension for work on BG Group’s facilities in the North Sea. The contractor will provide engineering, procurement, construction, commissioning and project management
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Amec has already carried out several key projects under the current contract including subsea tiebacks on Gaupe and North West Seymour, as well as a major topsides modification of the Armada platform.
Agility Group scoops record US$110 million contract for Gullfaks A platform topsides
Agility Group AS has signed a contract worth approximately US$110 million with Statoil. Agility Group will deliver topside modifications to a strategically important fast track project for Statoil on the Gullfaks field. The deal is one of the largest in Agility Group’s history, and will employ over 250 people at its peak. The delivery consists of topside modifications on the Gullfaks A platform and is connected to the tiein of the subsea gas fields Rutil and Opdal (located in Rimfaksdalen). The project is for engineering, procurement, construction and installation to commissioning.
Offshore Group Newcastle to design jacket for MonArb project in a US$77 million deal
Offshore Group Newcastle (OGN), has secured a contract worth US$77.4 million from Talisman Sinopec Energy UK, to design and fabricate a 120 metre long steel offshore platform support structure jacket for the MonArb project in North Sea. OGN also secured a multimillion pound contract to design and manufacture the jacket castings, which include two pad eyes of 27t capacity each, and two trunnion nodes of 55t capacity each, to connect the main leg and brace tubulars, which make up the jacket structure that can support a 10,000 tonne deck. The pad eyes and trunnion nodes will help to lift, rotate and install the 5,400 tonne jacket on the sea-bed at its location in the Montrose / Arbroath field, which is located 130 miles east of Aberdeen. The MonArb hub is expected to be able to handle 150 million cubic feet per day of gas and 30,000 barrels per day of oil. The jacket is expected to be ready in spring 2014, while installation is likely to take place in the summer of 2014. The new platform will be bridgelinked to the operator’s existing Montrose platform. In addition, steel castings maker Vulcan SFM has
I www.yourindustrynews.com I intelligent online marketing I www.projectsogp.com I online market intelligence secured a contract from Talisman Sinopec Energy UK to manufacture four deck lift points, two castings of 35t and two of 38t, four forged pins and four cast sheaths for lifting and installing the deck on top of the jacket. Under the contract, Vulcan will also supply a ten tonne steel joint for the flare boom on the platform.
Wood Group PSN shows strength in the North Sea with another contract extension for US$120 million
Wood Group PSN (WGPSN) has retained its contract with Dana Petroleum for an integrated support services (ISC) in the North Sea, marking more than 14 years of continuous service as prime contractor on the Triton FPSO. The contract is for two years with the option of a oneyear extension and estimated to be worth up to US$60 million per year. WGPSN will continue to provide operations, maintenance, engineering and construction services to Dana Petroleum. Effective immediately, the contract will be supported by 120 people offshore and 30 onshore, in the UK from its Aberdeen and regional Glasgow offices.
ABB wins US$27 million offshore automation contract
ABB has won an order from Statoil for the upgrade of safety and automation systems at the Heimdal platform in the North Sea, off the coast of Norway. The agreement with Statoil was signed in the second quarter of 2013. ABB’s scope comprises a new Human-Machine Interface for the control system, control room modifications, simulator, fire and gas detectors, integration of telecommunication in the control room and information management systems. Following the upgrades, the Heimdal platform will have ABB’s modern 800xA Extended Automation platform as the main control system, adapted to comply with Statoil’s guidelines for workstations layout and design of process graphic. According to the agreement, ABB will have the complete engineering, procurement, construction and installation responsibility.
This is the seventh North Sea contract extension chalked up by WGPSN in 2013 from CNR, TOTAL E&P UK, Teekey, Ithaca Energy, Nexen and ConocoPhillips.
Topaz Energy secures contracts worth US$20 million
Topaz Energy and Marine has secured new multi-year charters in the Russian Filanovsky project for nine of its offshore support vessels amounting to around US$20 million. The vessels have been deployed with offshore contractor Saipem and will support the development of the Filanovsky oil and gas field in the Northern Caspian Sea. The vessels will provide anchor-handling and tug services as well as transport of supplies and personnel. The total proven reserves of the Filanovsky field are estimated to be around 1.3 billion barrels.
Agility Group awarded US$8 million in the North Sea
Agility Group has landed a US$7.8 million contract with main contractor FMC Technologies to supply subsea systems for Statoil’s Smorbukk South Extension project in the Norwegian Sea. Agility will carry out construction and commissioning of a subsea system with well template and manifold at its local facility in Tonsberg, with a fast-track phased delivery of the equipment scheduled for 2014.
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Future Technologies by John Morrison
Oil exploration and production in the North Sea has changed and come back to life since its peak in 1999. Carbon capture and storage (CCS), enhanced oil recovery (EOR), challenges in deepwater exploration and development, and also the recent Macondo incident, are all contributing towards a push for new technologies, methods and in-turn, a whole new way of working. EOR is a technology which has been used in North America for decades, and is now being adopted by the oil industry in Scotland. The opening of a new centre - The Centre for North Sea Enhanced Oil Recovery with CO2 (CENSEOR-CO2), hopes to push forward the development of CO2-EOR and help the operators recover the 3 billion barrels of hard-to-reach-oil from the North Sea. With funding in-place, technology facilitators, storage capacity and existing technologies available to the North Sea oil industry, now is the time to start exploring EOR and answering the questions posed by the operators for the feasibility of implementing such technology into current and new operations. On top of increasing production levels from mature oil fields, deep-water exploration is one of the biggest challenges facing the oil industry and has been considered excessively onerous by exploration and production companies, in terms of investment and results. Advances in seismic technology, such as, coilshooting and high-end wide azimuth 3D, have provided operators with advanced basin modelling and petroleum systems assessment, for mapping difficult formations such as sub-salt layers. These technologies, along with the Government’s £3bn tax allowance in 2012, have helped exploration and production companies overcome potential risky and subsequently costly deep-water drilling operations in the North Sea since the dip in this market in 2009. Adopting advanced seismic technologies with multi-
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client surveys in place is also reducing exploration costs, as are the new generation of seismic vessels being brought to the market, which are reducing emissions and operating costs, due to improved efficiency. Deep-water field development has brought its own challenges, due to more complex subsea requirements. With these challenges come new technological demands, for early well reservoir appraisal, deep-water installation, HP-HT (high pressure - high temperature) drilling, dynamic positioning (for keeping rigs in position above the well), subsea early production and SURF (subsea, umbilicals, risers and flowlines), not to mention handling the environmental impact of a blowout. Operators are starting to bridge the gap between themselves and the technologies required to tackle these challenges. With approved contractors and subsequent approved vendor lists, it can be difficult for operators to keep up-to-speed with the technologies being developed within the oil industry and in-turn for technology firms to understand the challenges faced by the operators. This has become more apparent with the success of emerging state oil firms, such as Petrobras, who are embracing technologies, for operations in their Campos and Santos basins. It is time for North Sea operators to follow this example and open their doors to technology firms, bridging the gap and benefiting the future of the North Sea oil industry as a whole.
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RUD exhibiting new offshore product range at Offshore Europe 2013 RUD Chains Ltd, a leading manufacturer of highquality chain components and systems, is ISO 9001 certified and retain an impressive product portfolio delivering high performance chain products to suit the most demanding applications. RUD will present a range of its latest products and innovations at the show. An area of focus for RUD at the show will be displaying its range of lifting and lashing applications, offering over 270 different tested and certified lifting/lashing points, 210 of which are for bolting and 60 for welding, used across a wide range of working environments. As well as its lifting applications RUD will be showing its latest Innovation RFID technology, being one of the first manufacturers
offering the RFID chip embedded into an application, RUD is at the forefront of the innovation. RUD will also be displaying its range of conveyor and drive systems, known as TECDOS supporting a wide variety of maritime applications. So far TECDOS has been used to assist opening and closing of flood gates, lifting and lowering containers, moving and swivelling port cranes, launching lifeboats to telescoping crane booms to name a few. One of RUD’s latest innovations is the WBPG 85-200 tonne hoist ring for heavy duty engineering, uses for heavy engineering, offshore and construction projects. The VLBS-U-LT 2,5t welded load ring another new innovation, offers a major distinctive feature operating to temperatures as low as - 45°C and is perfect for many offshore, arctic offshore and specialised construction projects. Visit RUD at the show on stand 4A161
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PROVIDING A HIGH-PRESSURE DRILLING RISER IN DEEP WATER
issue is scaling up to the needs of deeper water. Depth increases the current and wave deflection of the jackup rig and the drilling riser, increasing loading on the whole system.” According to Bowyer: “The industry has little experience of jackup rigs in depths greater than 100m and in harsh environments. This makes for conservatism in design and operations. Furthermore, during high-pressure operations, well control considerations require a large blowout preventer, which adds a stiff component to the drilling riser and changes the dynamics of the string.” Drilling riser designs aim to minimise the risk of failure and meet design code and standard safety margins, but often have a large built-in “comfort factor” for coping with complex and unpredictable loading. The loading that a riser will face is difficult to model and is usually simplified for the design process because some of the factors are not well understood. For example, engineers must make assumptions about weather patterns in their model’s input data. The fatigue information used is often based on standard industry codes rather than
Speed was critical when Statoil wanted to use the West Elara jackup rig to install a high-pressure drilling riser for two wells in 132m of water at a Gullfaks satellite field, Norway. The riser had to be ready for installation in eight months to meet the rig’s operational schedule. Claxton Engineering, an Acteon company, managed the project with support from sister companies 2H Offshore, Pulse Structural Monitoring and Subsea Riser Products, who manufactured sections of the riser and supplied the riser spider. The companies jointly delivered a detailed drilling riser solution, bespoke engineering work and a monitoring system to track performance. This project was in unusually deep water for jackup rigs, as Darren Bowyer, project manager, Claxton, explains: “For jackup operations, deep water is over 80m. Leg length determines the depth that jackup rigs can operate in but average jackup rigs like the West Elara are for 80–100m of water, so 132m was challenging. The main
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component tests and monitoring. Consequently, designers can find it difficult to calibrate their models with data gathered during operations. For this project, 2H improved the model for riser loading, as experience shows that detailed modelling delivers an answer more than 30% closer to reality. The project team also recommended changing operational procedures to reduce riser deflections in the splash zone caused by waves and currents. The modelling indicated the potential for very high fatigue in the original riser design, so it was necessary to change the riser, the rig and the air gap. The alterations to the drilling riser design included adding a vortex-induced-vibration suppression system; using forged rather than welded joints in high-stress and fatigue-prone areas; and upgrading the tensioning system to 500t.
I www.yourindustrynews.com I intelligent online marketing I www.projectsogp.com I online market intelligence Bowyer says: “Adding special fairings to reduce vortexinduced-vibration and drag was a first for a highpressure drilling riser in the North Sea.” The rig design changes included increased load capacity for the Texas deck. The rig’s overshot capacity was also reviewed, but it was found to be fit for purpose. This project was the first use of Claxton’s NT-2 tool for deploying a riser and enabled it to be pressure tested before make-up to the blowout preventer.
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Monitoring and integrity management have become key focus areas, so Pulse developed a riser monitoring system to gather field data; enable integrity management; verify the predicted models; and enable the operator to drill safely. The system included topside and subsea sensors for recording movement, load and dynamic bending parameters.
Simplicity, Efficiency, Accuracy. Mattrol’s golden principles. By adopting these principles we know that Mattrol can become a great asset to your organisation.
This project has provided valuable insights into the use of jackup systems in deeper water. Bowyer says: “This project had a challenging time frame and about 90% of the riser was changed after the contract award. By drawing on successful projects like this, it should be possible to extend jackup drilling deeper.”
Contact details: T: 01224 841340 E: info@mattrol.com W: www.mattrol.com
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Bowtech Products delivers £100,000 Chain Stopper Monitoring System to SBM Offshore for BP Quad 204 project Bowtech Products Ltd, a global market leader in subsea vision systems, announced that it has delivered a £100,000 Chain Stopper Monitoring System to SBM Offshore, to monitor the chain stoppers during installation of the BP Quad 204 Turret Mooring System (TMS).
Earlier in 2012, Bowtech Products successfully delivered a Riser Visual Monitoring System to Imes, which monitored the pull-in and hang-off of the flexible risers on BP Norge’s Skarv project. For more information: please visit www.bowtech.co.uk.
The new system will allow visual monitoring of each chain stopper ratchet, when the chains are being tensioned during the installation phase of the TMS. There are a total of 20 chain stoppers which require monitoring during this phase, located on the chaintable, on the lower turret, around 15 metres below sea level.
BP Quad 204 Turret Mooring System. Image courtesy of SBM Offshore.
The scope of supply for the subsea system includes high resolution, high sensitivity monochrome cameras, together with LED lights (for use during poor ambient conditions), which will be installed onto the I-tubes, located above the chain stoppers, allowing downward viewing of the installation operations. For the topside system, the scope includes a video inspection and control system, for viewing and controlling the cameras and LED lights. Bowtech Products also supplied all the associated cables, connectors and brackets. Mike Winstanley, Sales and Marketing Director said: “We are delighted to work again with both BP and SBM Offshore on this highly prestigious project. This new system is one of several visual asset inspection and monitoring solutions Bowtech Products can supply to the offshore oil and gas industry.”
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WIRELESS MONITORING SOLUTIONS FOR OFFSHORE WINCHES AND CRANES Fisher Offshore and Load Systems UK have joined forces to deliver innovative wireless monitoring products for offshore winches and cranes. Traditional cable based systems can be restrictive and are susceptible to accidental damage, resulting in loss of displays which will cause down time and jeopardise multi-million pound work scopes. A wireless solution removes these potential risks and gives greater control of lifting and winching operations – maximising production and further increasing operational seasons offshore. The technology uses a unique frequency with a superior 1,300 meter range. Multiple systems can operate simultaneously with the option to have a single base station, capturing safety critical data with 100% operational accuracy and ultimate control of loads. Fisher Offshore and Load Systems UK - Pulling Together.
Fisher Offshore, North Meadows, Oldmeldrum, Aberdeenshire, AB51 0GQ. Tel: +44 (0) 1651 873932. Email: info@fisheroffshore.com Load Systems UK, Unit 5, Silverfield House, Claymore Drive, Aberdeen Energy Park, Bridge of Don, Aberdeen, AB23 8GD. Tel: +44 (0) 1224 392900. Email: uksales@loadsystems.com 15
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Future of the North Sea The next 50 years
by Neda Djahansouzi
The North Sea looks set for a promising future, with recent oil discoveries, licence awards, improvements in technology and new tax breaks encouraging investment and pushing production up to an estimated 2 million barrels a day by 2017. Recent Oil Discoveries and licence awards In February 2013, the Abu Dhabi National Energy Company, TAQA, discovered oil in the new Darwin oil field in the northern North Sea area near the Shetland Islands offshore Scotland. Two oil columns have been discovered since drilling began in November 2012. TAQA is currently re-evaluating the potential of the Darwin oil discoveries along with the NW Hutton field re-development. Soon after, in June 2013, Total hit hydrocarbons in an appraisal well on the Norvarg discovery on production license 535 in the Norwegian sector of the North Sea. The appraisal well was drilled using Ocean Rig’s semisubmersible Leiv Eiriksson in a water depth of 377 metres. In the latest North Sea licensing round, the Department of Energy and Climate Change (DECC) awarded a record 167 new licences on 330 North Sea blocks, implying that production will continue to increase beyond 2017.
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Improvements in Technology One of the reasons that the oil in the North Sea has managed to sustain its extended production life is the emergence of new technology that has helped extract reserves long considered economically unfeasible. Many of the fields that have recently come into production were left untapped because the price of extraction was considered too high. The North Sea has seen a record rise in oil and gas investments in 2013. BP’s recent US$4.5 billion capital investment in the Clair Ridge Project will give access to 640 million barrels of recoverable oil, and see up to 120,000 barrels per day at peak, extending the life of the field to 2050. The UK DECC approved a US$7 billion investment by Statoil in the Mariner heavy oilfield, in February 2013. The Mariner field will be developed with a production, drilling and quarters platform, based on a steel jacket, with 50 active well slots, and an 850,000 barrel floating storage unit. Mariner is expected to have a thirty-year field life and should start production in 2017.
I www.yourindustrynews.com I intelligent online marketing I www.projectsogp.com I online market intelligence Carbon capture and storage technology could provide another addition to production if successfully adapted to power stations. Carbon dioxide gas shipped to North Sea would be injected into oil reservoirs to force out more oil and provide the North Sea with another lease of life.
New Tax Breaks The Government has introduced new tax breaks to encourage investment in older oil and gas fields in the North Sea. The tax allowance will shield up to US$385 million (£250 million) of income from some projects in brownfield sites and that figure will rise to US$770 million (£500 million) for projects in fields paying the petroleum revenue tax. The Chancellor, George Osborne stated “This will give companies the incentives to get the most out of older fields, creating jobs and delivering more revenue for taxpayers.”
developing its Cygnus gas field in the North Sea. Furthermore, CNR International is preparing to invest US$470 million to extend the life of the Ninian field in the UK northern North Sea, following a successful application for the UK Government’s brownfield allowance. In summary, there is a bright future ahead for the North Sea. Despite some believe that oil and gas in the North Sea is depleting, although this is intrinsically true in that oil reserves currently under the North Sea bed are finite; the advancements in technology have allowed for an extended production life, meaning the resources decline will be a slow and drawn out process. New tax breaks have encouraged companies to extract more oil and gas from older fields and have attracted large investments into the North Sea. With recent major oil discoveries proving a revival in production, there is certainly life in the North Sea for the next 50 years.
Following the announcement, British Gas owner Centrica pledged to invest US$2.16 billion into
NNSA conducts International Radiological Response Training in Vienna The National Nuclear Security Administration (NNSA), in partnership with the International Atomic Energy Agency (IAEA) Incident and Emergency Center (IEC), last week conducted an International Radiological Assistance Program Training for Emergency Response Advanced (I-RAPTER A) training course at the IAEA headquarters in Vienna, Austria. Read more at: www.yournuclearnews.com
Significant gas discovery in the UK North Sea E.ON Exploration & Production’s (E&P) Tolmount gas discovery in the UK North Sea could contain significantly higher volumes than originally estimated, making it one of the largest discoveries made in this part of the North Sea for several years. The recently completed appraisal well reached its targets within time and budget on 6th July 2013. A 855 m side-track was completed on 30th July 2013. “This successful discovery in UK is an important step for our growing upstream business. Tolmount will significantly contribute to the implementation of our business strategy,” said Jørgen Kildahl, member of the E.ON Board of Management. Read more at: www.youroilandgasnews.com
Offshore Installation Services Ltd announces easing the burden of suspended well decommissioning Offshore Installation Services Ltd (OIS), an Acteon company, has launched a new service designed to help operators fulfil their suspended well decommissioning plans. Wellintel is a well data collection and review service that gathers and prepares the information operators require before they start a decommissioning programme. OIS engineers with extensive well abandonment knowledge and detailed understanding of the entire decommissioning process will deliver the service. Operators having an up-to-date well inventory and regulatory documentation ready for submission to DECC and the HSE can take advantage of commercially efficient opportunities such as multiclient abandonment campaigns that may arise at short notice. Decommissioning offshore assets is a key challenge for the UK’s offshore oil and gas industry. The UK government’s Department of Energy and Climate Change (DECC) is prompting operators with assets that require permanent abandonment to expedite the process Read more at: www.yourdecommissioningnews.com
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Your local and international Cable Partner INTERKAB is the brand name of International Cable Management, a privately owned group of companies, with its headquarters based in Aberdeen. It is a leading service company in the management and supply off a diverse range of Electrical Cables including power, control, instrument, fibre optic and underwater, together with associated electrical products to the global oil and gas industry .The company has been building a strong and distinctive reputation with a strong foundation including the management team which has been associated with both the OGP industry and its products since the early days of the North Sea, some 40 years. INTERKAB is both local and International and operates from the key oil and gas hubs in Aberdeen, Dubai and Atryau. Current plans are on-going to increase its presence internationally and position itself in other key hubs of the oil and gas industry. The ability to offer a quick delivery and meeting clients urgent requirements is key to the company’s success and recent awards this year relate to projects in, Aberdeen, Australia, Azerbaijan, Brazil, China,
Mike Knox - Managing Director - INTERKAB Germany Iraq , Russia, and Singapore reflecting on the company’s ability to meet client deadlines and in some cases within a 4-6 week manufacturing lead time. INTERKAB’s focus is to highlight these capabilities to our customers albeit operators and engineering contractors. International Cable Management Ltd INTERKAB House Links Place Aberdeen AB11 5DY T: 0044 (0)1224 595 640 F: 0044 (0)1224 594 416 E: sales@interkab.com W: www.interkab.com
Visit INTERKAB on stand 1E111 stand 15 3 -6 Sept 2013 AECC
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Project news Africa www.projectsogp.com A business information database which provides invaluable project data, news and updates on global oil, gas and petrochemical projects. • •
538 Projects online Updated daily
Egina Pole Area - OML 130 Technip lands Nigerian umbilicals deal
Technip has been awarded an umbilical supply contract for the Egina field, offshore Nigeria, by the operator of the field, Total Upstream Nigeria. The contract covers project management, engineering and the manufacture of approximately 47 miles of steel tube umbilicals, including production, water injection and subsea isolation valve umbilicals. A significant amount of project management and engineering work will be carried out locally in Nigeria, while the umbilicals will be manufactured at Technip’s DUCO subsidiary in Newcastle upon Tyne, UK. Technip expects to deliver the umbilicals in 2016.
WorleyParsons awarded US$100 million Egina FPSO contract
Samsung Heavy Industries has awarded WorleyParsons a contract for the detailed design and engineering of the topsides process modules for a floating, production, storage and offloading (FPSO) vessel to be deployed on the Egina Pole deepwater oil field, 150 kilometres off the coast of Nigeria. The scope of work includes the modularised topsides crude oil processing facilities, natural gas compression facilities, power generation, compression, metering systems, flare systems and various other utilities in support of the overall operation of the FPSO. The FPSO will be able to handle 200,000 barrels of oil per day, 160 million cubic feet of gas per day and store two million barrels of oil per day. The contract will be executed under the Nigerian local content law, with the majority of work taking place in Lagos, Nigeria, in conjunction with a consortium of Nigerian engineering companies, NETCO, DeltaAfrik, IESL. Technical support will be provided from WorleyParsons office in Melbourne.
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Samsung Heavy Industries gets its US$3 billion Egina award
Samsung Heavy Industries has been formally awarded a US$3 billion contract to supply a major newbuild floating production, storage and offloading (FPSO) vessel for Total’s Egina project off Nigeria. Samsung will build the FPSO hull and carry out some topsides work in South Korea, which is expected to account for about US$1.7 billion of its contract value. The FPSO will have a 36,000 tonne deck, a storage capacity of 2.3 million barrels and is scheduled to be delivered by 2016. First oil from Egina is due to flow in the second half of 2017.
FMC Technologies secures US$1.2 billion subsea equipment order for Total’s Egina field
FMC Technologies, Inc. has received an order from Total Upstream Nigeria. for subsea equipment for the Egina field. The award has an estimated value of US$1.2 billion. The Egina field is located in Block OML 130 offshore Nigeria. FMC Technologies’ scope of supply includes subsea trees and wellheads, manifolds, installation tooling, flowline connection systems, and associated control systems. The equipment is scheduled for delivery commencing in 2015.
Saipem lands US$3 billion Egina award
Saipem has been awarded a US$3 billion contract from Total for engineering and construction work on subsea facilities for development of the Egina field off Nigeria. The Italian contractor will carry out engineering, procurement, fabrication, installation and precommissioning of 52 kilometres of oil production and water injection flowlines under the deal.
I www.yourindustrynews.com I intelligent online marketing I www.projectsogp.com I online market intelligence It will also deliver 12 flexible jumpers, 20 kilometres of export pipelines and 80 kilometres of umbilicals, as well as mooring and offloading systems, with installation work to be carried in 2016 and 2017. Most of the fabrication work will be carried out at the Saipem Rumoulumeni yard in Port Harcourt in line with Nigeria’s local content requirements. Total will use a floating production, storage and offloading vessel to develop the deep-water field, located in a water depth of 1,700 metres, with the US$3 billion contract for construction of the vessel awarded earlier this month to Samsung Heavy Industries. The field is now expected to come on stream in the second half of 2017, about three years behind the original schedule.
Block 14 Benguela, Belize, Lobito & Tomboco Fields (BBLT I) & Lianzi Field Subsea 7 awards Nexans US$33 million contract for Lianzi field
Nexans has been awarded a US$32.8 million contract by Subsea 7 to design and manufacture the direct electrical heating (DEH) system for the subsea pipelines serving the Lianzi oil field development located in a unitised offshore zone between the Republic of Congo and the Republic of Angola. The contract with Subsea 7 covers the delivery of a complete DEH system, including DEH riser cable, armoured feeder cable, a 43 kilometre piggyback cable, and all associated accessories for connection to the pipeline that will connect the Lianzi development project subsea facilities with the BBLT platform. The cables for the Lianzi DEH system will be manufactured at Nexans’ factory in Halden, Norway, for delivery during the summer of 2014.
Tecnicas Reunidas wins US$1 billion gas contract in Algeria
Tecnicas Reunidas SA , a Spanish industrial engineering company, is set to win a US$1 billion contract to build a natural gas-processing plant in Algeria. The company, based in Madrid, was chosen by a joint venture between GDF Suez SA of France and Algeria’s Sonatrach to design and build the facility with a capacity to produce 13 million cubic metres of the fuel a day. Tecnicas competed for the contract with Petrofac and Japan’s JGC Corp. Algeria’s Touat field is estimated to hold 68.5 billion cubic metres of natural gas and 8.5 million barrels of condensate.
2H Offshore awarded Moho Nord contract 2H Offshore has been awarded a contract by Total for the delivery management of the TLP top tensioned riser (TTR) systems for its Moho Nord field development, offshore Congo. Located approximately 75 kilometres from PointeNoire and 25 kilometres west of N’Kossa in water depths ranging from 450 metres to 1,200 metres, the Moho Nord project will target additional reserves in the southern part of the license and new reserves in the northern part. This is the third and final phase of the project for Total. 2H Offshore will be responsible for the riser delivery management, which includes design finalisation, procurement management and inspection services for 17 production and water injection top tensioned risers and one high pressure drilling riser. The 2H Offshore Houston office will be responsible for this phase of the project. First oil on the Moho Nord development is planned for the third quarter of 2016.
Strainstall to supply critical mooring monitoring solution for Total’s Moho Nord TLP
Strainstall Limited has been awarded a contract through Hyundai Heavy Industries to provide Total with an Integrated Marine Management System for their Moho Nord Tension Leg Platform (TLP) destined for installation off the Congolese coast in West Africa. Strainstall’s will provide Total with a comprehensive mooring monitoring solution for the Moho Nord TLP that is critical to production and safety. This multimillion dollar contract is due to be completed over the next year.
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Examining the potential in international markets
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l-r John Reynolds, Fidelia Nzekwe-Chinwuko, Arc. T.C. Emeka Awagu, Robert Collier (AGCC) and Patrick Abuka Aberdeen & Grampian Chamber of Commerce (AGCC) knows the value in connections, with a network that extends locally, nationally and internationally. With an eye to identifying the most desirable and valuable global markets, AGCC has opened a conversation with its 1,200 members which will prioritise the key targets for international growth. AGCC’s experienced international business team provides companies with business advice to support market entry and export initiatives, using its comprehensive databases and established connections with other support organisations. These networks are there to help organisations trade internationally and network experience and business knowledge have proved invaluable to many companies in the energy sector and beyond. The expert team can deliver bespoke projects, such as the development of export strategies, production of export business plans, sales and marketing support and business development. In the last year, AGCC has led trade missions to Tanzania, Uganda and Mozambique, as well as welcoming inbound missions from India, Malaysia, Colombia, Ghana and Nigeria. The overseas missions provide an introduction to oil and gas opportunities in these specific markets, and include briefings with key stakeholders and players in the country. They provide detailed market insights,
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The UK’s subsea industry is worth £8.9billion, which is 45% of the £20billion global market. With over 75% of the subsea total revenues generated in the North-east of Scotland, AGCC is at the very heart of a strong and sustainable economy. The Scottish Government’s oil and gas strategy aims to increase the share of international sales across Scotland from 47% to 60% by 2020, and AGCC aims to play a part in facilitating this growth. and include networking receptions and one-to-one meetings as well as site visits. The aim is to give delegates all the information and contacts they need to support their entry into the market. The most recent delegation to Mozambique had 12 companies represented, from both major service companies and SMEs. With historic expertise in sub-Saharan Africa built up over 16 years through the Africa Business Centre, AGCC is now broadening its horizons in the global marketplace, armed with a pragmatic understanding of where demand is latent and achievable. A combination of extensive research from multiple
I www.yourindustrynews.com I intelligent online marketing I www.projectsogp.com I online market intelligence agencies and its contacts in international business networks has identified where the main opportunities for growth lie. AGCC believes that in building a regional approach, rather than focusing on individual countries, it will ensure both continuity and flexibility. Membership director at AGCC Liam Smyth said he was keenly aware of business needs. “We have found our members want help with market access across a broad range of international markets with growth potential, rather than market support in a narrow range of international markets. “They want to be introduced to opportunities, rather than have their hand held in difficult markets.” This year, AGCC has been assessing a range of international markets to target for export growth. Sub-Saharan Africa makes good use of existing expertise and competence, and markets in Ghana, Nigeria and Angola feature on the list, along with Tanzania, Uganda and Mozambique. Historic valuable contacts in China also make Hong Kong and Shanghai destinations where AGCC can use its current networks and contacts. However there are also strong existing links in areas where influence can be extended, such as the Falkland Islands, the Baltic, India, the Arabian Gulf and southeast Asia.
In the medium to long term, there is also the opportunity to innovate. These are new markets with the potential to grow and have been identified in Central America, mainly in Mexico, Venezuela and Colombia. It is not a definitive list until tested with members, as Mr Smyth identifies. “We’ve left out some markets that we know our members are interested in,” he said. “We are aware that export support is provided to these by other business support agencies and we want to avoid duplication of effort.” The strategic development of overseas goals has been informed by extensive research as well as negotiations with key contacts from potential markets. This summer, AGCC hosted a visit by the Colombian NOC Ecopetrol, a Fortune Global 500 company and one of the world’s 25 largest petroleum companies. Following the AGCC trade mission to Mozambique in June, the Mozambique president Armando Emilio Guebuza visited Aberdeen the following month. He attended a two-day conference in the city involving the High Commission of the Republic of Mozambique which looked at infrastructure development in the country’s emerging oil and gas industry. The expertise at AGCC is boosted by its burgeoning export documentation service, which issues over 8,500 documents a year. As well as effective and efficient export administration, these specialists assist with access to export finance, and provide market intelligence and export-readiness training. These different strands of international expertise, access to business networks, and specific export specialisation are what place the Chamber in the unique position of being able to support the ambitious growth and internationalisation of North-east oil and gas businesses. For information on international opportunities available through AGCC, contact:
Chinese delegation meeting in 2012
Membership Director Liam Smyth E: liam.smyth@agcc.co.uk T: +44(0) 1224 343 920 W: www.agcc.co.uk
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Mozambique: playing with the big boys
Delegation in Mozambique Mozambique, just like its neighbour Tanzania, recently caught the eye of the oil and gas industry and became the centre of attention as a massive source for the global gas supply. The first discoveries of natural gas in Mozambique date back to the early 1960s, but it really only took off in 2010 and the discovery by Anadarko of their first “Windjammer” well in Offshore Area 1. After this, all of Anadarko’s subsequent 11 wells reported positive results. Italy’s ENI also announced great successes on all wells that were drilled. Current estimates of recoverable reserves of gas for Areas 1 and 4 are 60-120 trillion cubic feet. Shell and BP have publicly expressed an interest in getting involved. Mozambique’s real GDP has grown fast, averaging 7.4% for the past 10 years (2012 nominal GDP was $14.6bn). It was against this background that AGCC led an oil & gas trade delegation to Mozambique in June, visiting both the capital Maputo and the city of Pemba, close to the Tanzanian border. The high profile mission, sponsored by the oil and gas logistics specialist AMT Intercargo Necotrans, was organised with the support of UK Trade & Investment’s local office and received a warm welcome from the UK High Commissioner Shaun Cleary. There is potential for Mozambique to become one of the largest exporters of LNG in the world, after Qatar and Australia. However, the commercialisation will not come without challenges as Mozambique has yet to find investors to develop its infrastructures and address the shortage of skills within the working population. In the long-term, infrastructure spend is likely to drive
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growth. The planned multi-billion dollar LNG projects ($15-20bn for one LNG train) mean that gas from the US or Australia with their established infrastructures may be more competitively priced than the gas extracted in Mozambique, both onshore and offshore. In the northern part of the country where most of the exploration is taking place, cities such as Pemba, Palma and Nacala are far from being ready to welcome the industry. English-speaking skilled people are a rare commodity, and demand for hotel rooms and staff houses mean prices are currently going through the roof. In terms of investments, Mozambique presents itself with a contradiction. Some of the rules on investment and local content are far less severe than in other sub-Saharan African countries for example. According to locally based legal firm Pimenta, Dionísio e Associados, there are no legal barriers to foreign investment, for which projects are swiftly approved. Local companies/branches can be registered quickly and the country benefits from several double taxation agreements and a good banking system. However, the bureaucracy, inefficient judicial system, increasing costs, and restrictions on hiring expatriates are some of the obstacles that a foreign investor will have to overcome.
www.agcc.co.uk
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Corrosion - the creeping menace As oil and gas production pushes deeper into the world’s harshest geological environments, there is a greater need for assurances on the performance of coatings, platings and metals. Corrosion costs the world approximately 3$trillion per annum and a significant percentage of this loss could be saved by the application of modern technology.
to the very best knowledge and capabilities in corrosion testing:
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New materials, such as composites, are being employed by the industry and new coatings systems are being used, but basic carbon steel is still the work horse of the industry and its main issue is that it corrodes.
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In response to the rapidly growing industry challenges, Exova has created a new £3million Corrosion Centre to help identify and develop future solutions. Based in Dudley and headed up by renowned corrosion expert Dr Chris Fowler, Exova’s Global Director of Corrosion and Fellow of NACE International. The new 23,000 sq.ft purpose-designed facility will become the central hub of a network of laboratories around the world, including Abu Dhabi in the Middle East, Houston, USA, Crema in Italy, Singapore and Sandnes in Norway. It will also bring together a team of global industry experts in corrosion delivering substantial testing facilities of the highest standard and ensuring companies have access
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Standard Hydrogen Induced Cracking (HIC), Sulphide Stress Cracking (SSC) tests. Specialised Full Ring and Stress Orientated Hydrogen Induced Cracking (SOHIC) tests. Autoclave facilities pitting and crevice corrosion. Corrosion, coatings, asset life management, failures analysis, environmental testing and Immersion Ultrasonic Testing (IUT). Capabilities in critical but routine testing, including weld procedures, weld certification and metallurgy for pipelines and other oil and gas assets. A significant increase in autoclave capacity, routine corrosion testing as well as Slow Rate Strain and Full Ring testing. The Exova Corrosion Centre experts are always looking to extend their capabilities to effectively cater for customers’ diverse needs.
Corrosion is clearly still a major source of revenue loss. Future investment should be tailored towards mitigating the effects of corrosion and protecting the environment and the Exova Corrosion Centre is well equipped with skills and capability to help companies to achieve that. www.exova.com/ECC
The Online Electronics Group are exhibiting on the Scottish Pavilion, stand 2E34
ONLINE ELECTRONICS GROUP
UK Online Electronics Ltd. & Online Valves Ltd. Online House 266 Auchmill Road Aberdeen Scotland T: +44 (0) 1224 714714 E: sales@online-electronics.com
Singapore Online Electronics Asia Pacific Pte. Ltd 18 Boon Lay Way #03-130 TradeHub 21 Singapore 609966 T: +65 6795 6792 E: info@online-electronics.com.sg
Dubai Online Electronics Ltd (DMCC Branch) Suite 2408/24th Floor, X2 Tower Jumeriah Lake Towers Dubai, UAE T: +971 4434 3221 E: sales@online-electronics.com
USA Online Pipeline Solutions Inc. 1980 Post Oak Boulevard, Suite 1500, Houston, TX 77056 T: +1 7133604871 E: sales@online-electronics.com
Australia Online Electronics Asia Pacific Pte. Ltd (Australia Branch) 14 Cocos Drive C/O Red Rock Oilfield Services Bibra Lake Perth WA 6163 T: +61 94182544 E: info@online-electronics.com.sg
Brazil Geoterra Servicos Ltda. Rua Mexico 3/11 Andar Centro Rio de Janeiro RJ Cep: 20031-144 Brazil T: +55 21 2223 6222 E: sales@online-electronics.com
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Block BM-S-11 Sub-Salt – Lula & Cernambi Fields
Puerto La Cruz Oil Refinery Expansion Project
Saipem selects BMT for riser monitoring in Brazil’s pre-salt fields
Technip awarded contract for two hydrogen reformers in Venezuela
Saipem has contracted BMT Scientific Marine Services to provide riser monitoring systems for two Free Standing Risers (FSHRs) and four Steel Lazy Wave Risers (SLWRs) for the Sapinhoá Norte and Cernambi Sul pre-salt fields offshore Brazil. These systems will monitor the integrity of these risers by measuring strains, motions, attitude, and position of submerged portions of the riser strings. Each FSHR system will include BMT’s patent pending ROVServiceable Strain Sensor Assembly which allows users to service or replace individual sensors by ROV. BMT’s patented polypropylene welded attachment scheme for attaching strain sensors to submerged, insulated pipes will be employed on the SLWRs.
Technip inks Petrobras pipes deal
The contract covers the complete engineering, fabrication, modularisation, procurement as well as pre-commissioning and start-up assistance. This project will utilise Technip’s high-efficiency top-fired steam reformers, to produce high-purity hydrogen and export steam, and the latest nitrogen oxide reduction technology to ensure minimum emissions.
Petrobras has handed Technip the contract to build flexible pipes for a key pre-salt field in the Santos basin.
Technip’s operating centre in Claremont, California will execute the contract, which is scheduled for completion in the second quarter of 2014.
The engineering giant will construct and deliver up to 250 kilometres of pipes for use on the Iracema Sul field, formerly known as Cernambi Sul.
Wison Offshore lands US$1 billion refinery deal in Venezuela
The flexible pipes will link up to the Cidade de Mangaratiba floating production, storage and offloading unit. The field lies in water depths of up to 250 metres. Technip’s operating centre in Rio de Janeiro, Brazil will perform the engineering and project management
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Technip was awarded by the Hyundai-Wison consortium a significant contract to supply its proprietary technology as well as engineering and procurement services for two hydrogen reformers in Venezuela. The reformers are part of the Deep Conversion project being executed by the consortium for Venezuela’s state oil company, Petroleos de Venezuela SA (PDVSA), to upgrade the Puerto La Cruz refinery.
Wison Engineering Ltd. has been awarded an engineering, procurement and construction contract by PDVSA Petroleo, S.A., at the Puerto la Cruz oil refinery. The total contract value amounts to approximately US$2.993 billion, of which Wison Engineering will receive a share equivalent worth about US$927.8 million. The project will upgrade refinery facilities to process heavy crude oil, with a capacity of 210,000 barrels per day. In addition, the contract calls for the expansion of gasoline, diesel and aviation kerosene projects and other facilities. The project is expected to be completed within 42 months from its commencement.
I www.yourindustrynews.com I intelligent online marketing I www.projectsogp.com I online market intelligence US$18 million Colombia contract win for Wood Group PSN
Wood Group PSN (WGPSN) is delivering operations and maintenance services to Chevron’s offshore production facilities under a new US$17.5 million contract. Wood Group PSN will provide services to Chevron’s two offshore platforms (Chuchupa A and B), in the Chuchupa natural gas fields, Caribbean Sea, and two onshore natural gas fields (Riohacha and Ballenas) in the province of La Guajira, northern Colombia. The award marks WGPSN’s first offshore services contract in Colombia and will involve over 100 new jobs. The contract term is three-years with an additional three-year option to extend.
Expro secures US$10 million contract in Santos basin
Expro has been awarded a US$10 million contract on Queiroz Galvao Exploracao e Producao’s (QGEP) BS-4 Block in the Santos basin, off Brazil. Expro had been contracted to provide heavy oil well testing to post-salt wells and data management services through partner company Baker Hughes. Under the contract, Expro will provide QGEP with subsea equipment, drill stem testing, data acquisition, surface well testing, fluids services and wireline intervention services.
Kentz consortium wins US$58 contract in Colombia by CB&I
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Kentz Corporation Limited has been awarded an electrical and instrumentation installation contract by CB&I for the Reficar Refinery Expansion Project in Cartagena, Colombia. Kentz Caribbean Sucursal Colombia, in consortium with local companies GMP and MASA will execute the electrical and instrumentation installation works for the process units on the new 165,000 barrels per day refinery expansion project at the Reficar refinery in Cartagena, Colombia.
platforms, of a 30 inch diameter and 67 kilometres long offshore export pipeline, of two 14 inch diameter clad infield flowlines and other infield cables, along with the related tie-in operations. The marine activities will be mainly performed by the Saipem 3000 and Castoro 7, between the third quarter of 2013 and the second quarter of 2014.
Technip to build topsides for Franco Sul FPSO
Technip and partner Techint have been awarded a substantial contract by a Petrobras subsidiary, PNBV, to support the construction of the P-76 floating production, storage and offloading (FPSO) unit. Tasks include the topside construction and integration of the unit, as well as providing commissioning and start-up assistance. Technip’s operating centre in Rio de Janeiro will perform the project management, engineering and procurement for the contract. Fabrication, integration and commissioning of 24,000 tons of modules will be performed in Techint’s yard in the south of Brazil. The project is scheduled to be completed by mid-2017.
TOYO-SETAL awarded hydrogen production facilities in Brazil
TOYO-SETAL Empreendimentos Ltda. (TSE), a Brazilian joint venture by Toyo Engineering Corporation, has been awarded a contract from Petrobras for the construction of hydrogen production facilities to be installed in the Complexo Petroquímico do Rio de Janeiro (Comperj) now under construction in Itaboraí, Rio de Janeiro, Brazil. The project scope of work is for detailed design, procurement of equipment and materials, installation and commissioning support. The project is scheduled to be completed in mid-2016. The Comperj is regarded as one of the important projects by Petrobras, which utilises heavy oil produced in local oil fields as feedstock to meet increasing domestic demand for light oil and petrochemical products.
The duration of the contract is 15 months, with a value of approximately US$58 million and estimated peak manpower levels of over 750.
Saipem lands US$500 million offshore contract in Gulf of Venezuela.
Saipem has been awarded a US$500 million engineering and construction contract for the development of the Perla EP Project, in the Gulf of Venezuela. The scope of work encompasses transportation and installation of a hub platform and two satellites
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Piper Alpha
an accident that changed the industry
by Ioannis Tzelepis
25 years ago, the most disastrous accident in the North Sea oil and gas history occurred causing the death of 167 people and completely destroying one of the largest oil platforms in the North Sea: Piper Alpha. The Piper Alpha, a large oil platform located in the North Sea, was initially commissioned in 1976, while later modified to operate as a gas processing and gathering hub. Handling huge amounts of high pressure gas designed with a scattered plant layout. As a result of this, maintenance and inspection tasks carried out were difficult, which was an underlying cause of the accident.
of the pressure safety valves was removed for an overhaul. The staff working on this task sealed the compressor temporarily using a flange and completed all the relevant permit work, stating that compressor A wasn’t ready for use. With the first compressor having been shut down, the platform was operating using only compressor B, until an unknown problem caused it to fail.
The platform produced oil from a total of 24 wells and was connected through a 128 mile pipeline to the Flotta oil terminal on the Orkney Islands along with another two installations. At that time, Occidental Petroleum (Caledonia) Ltd, the operator of the platform, produced 10% of the North Sea’s gas from the Piper Alpha platform.
A lack of communication among the staff, as well as failure to find the paperwork for the condition of the first compressor, led the team to restart it. At the beginning, the flange prevented the leak, however, with large amounts of oil and gas passing through the platform, the flange failed and a gas leak commenced. The leak found an ignition source and caused a small explosion, which grew as the riser of one of the pipelines, connected to another installation, burst. Due to the fact that the gas flow of the pipeline had not been shutdown, the fire expanded rapidly. In addition, all the fire water pumps had been switched to manual mode from automatic, as divers were working around the platform, therefore, they didn’t start automatically once the fire had commenced.
On the 6th of July 1988, a leak of natural gas caused a massive explosion on the Piper Alpha. The heat shattered the riser of the connected pipeline, resulting in a major fire on the platform. Even though the whole incident lasted less than 22 minutes, it was catastrophic. On the day of the disaster, the platform’s first compressor was under maintenance work, as one
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As a result of its tremendous fatality, the incident led
I www.yourindustrynews.com I intelligent online marketing I www.projectsogp.com I online market intelligence to huge changes in the offshore regulatory regime. The emanating point for most of the changes has been the Cullen report. Lord Cullen was assigned to chair the official public inquiry for the disaster, which led to a report summarising the causes of the accident, as well as presenting recommendations in order to prevent accidents like the Piper Alpha occurring again. The document revealed 106 recommendations which were spread among the regulators and the oil and gas industry. The most significant were: • The responsibility for all the health and safety issues to be transferred from the government to the Health and Safety Executive (HSE). • The introduction of a Safety Case regime • The establishment of emergency response and incident reporting • The improvement of the permit-to-work system and the enhancement of the communication among the operator’s system • The enhancement of the maintenance management system • The initiation of Formal Safety Assessments One of the key points of the report was regarding the role of the Health and Safety Executive (HSE). Lord Cullen proposed that every operator/owner of a fixed or mobile installation in UK should submit a safety case scenario for acceptance to the HSE. The Offshore Installations Regulations (Safety Case) was implemented by 1992 and by 1995 all the installations had a safety case approved by the HSE. The role of this regime was to provide full details regarding the management of health and safety issues, forcing the operators to identify and minimise the risk of accidents, while having made provisions for the safe evacuation of the crew and their rescue in case of a similar incident. The Offshore Installations Regulations (Safety Case) was later enriched and supported by a series of additional regulations:
2 Annual nd
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•
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The Offshore Installation and Pipeline Works Regulation of 1995, which introduced the position of the offshore installation manager for every installation located in the UK North Sea. The Offshore Installations Regulations for Prevention of Fire and Explosion and Emergency Response (PFEER), which establishes a safety regime of all the offshore workers in case of fire or explosion, as well as securing an efficient emergency response The Offshore Installations and Wells Regulations of 1996, according to which, every operator must ensure the integrity of the installations, the safety of the offshore and onshore wells and in general of the workplace.
All the above regulations, applicable to the oil and gas industry, built a safety net for the workers and the installations, while setting the objectives for every operator without clearly stating the way they should be achieved, offering by this way flexibility of choices, equipment and methods. The industry responded rapidly to every recommendation. Furthermore, in 1997 the industry launched a campaign called Step Change in Safety, an initiative aiming to deliver a 50% improvement in the industry’s safety performance by 2000, with the HSE monitoring these processes statistically and publishing the results annually. In conclusion, the aftermath of the Piper Alpha accident found the industry and the regulators shocked by the tremendous impact of the accident, however, ready and willing to make significant changes in the offshore safety regime and culture, in order to avoid similar accidents occurring. It became common knowledge that as the industry evolves with new contemporary equipment and technologies, it is also essential to introduce effective management systems that will be constantly renewed to deal with the hazards and minimise the chances of them occurring.
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Managing the risks
of tasks to support their clients well, demonstrated by its organic growth, based, largely on repeat business and referral. The departments carry out work for oil majors, including Principal Marine Support provision, Ship Vetting, Auditing, Incident Investigation, Safety Management Systems, Safety Cases, Thorough Reviews, Bow Tie Risk Assessment, Practical Risk Assessment Workshops for Managements and Crews and the planning and execution of Rig Moves as well as undertaking Technical Authorship, OVIDS and General Marine Consultancy. Marex has developed innovative ways of ensuring that aspects of the PFEER (Prevention of Fire Explosion and Emergency Response) Regulations, and the Design and Construction Regulations are addressed. It has helped its clients introduce user friendly verification schemes.
Marex Marine and Risk Consultancy specialises in Marine and Risk consultancy, Safety Management Systems, Safety Cases, Thorough Reviews, Audits, Risk Assessment and Studies, Technical Authorship and Rig Moves. Formed in 1998, Marex, whose core business is Safety Case authorship (introduced in UK under the Cullen Report following the Piper alpha platform disaster in 1988) now has two rapidly expanding departments, Risk and Marine, which operate from its harbour side offices in Aberdeen, Scotland. The worldwide oil and gas market is changing and has been opened up to Marex as more coastal states now have a requirement for drilling companies to have safety cases. This is coupled with the fact that the oil majors are requesting drilling companies to have safety cases even if there is no coastal state legislative requirement. Marex for many years has been a leading provider of Safety Cases and HSE Cases Internationally, having completed over 100 cases to date. Furthermore, the Macondo incident in the Gulf of Mexico will no doubt result in a more prescriptive legislative regime worldwide and a requirement for the expertise of companies such as Marex Marine and Risk Consultancy to become involved in the risk assessment process worldwide. Regardless of legislation there is a duty to provide a safe place of work. Marex coordinates a team of marine, safety and risk professionals, working in such places as Norway, Egypt, Brunei, Singapore, South Korea, Trinidad, Bahrain, Turkey and US. The team comprises of Master Mariners, Marine Engineers, Naval Architects, Mathematicians, Human Factors, Risk and Safety specialists and Industry experts. This combination of staff allows Marex to very effectively perform a variety
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The Marex risk assessment techniques ensure that the workforce is better able to understand the Safety Case and the implementation of its related regulations. Greater involvement of the workforce is a key point made much of at the joint industry conferences on the topic. Marex employ QRA specialists who have developed robust qualitative risk assessment techniques to fit all levels of hazard, increasing their strength and reputation in this field. Ian McDougall, Managing Director, Marex Marine and Risk Consultancy, stated “Over the last five years, there has been noticeable development in the volume of work being undertaken worldwide and the geographical spread of that work. Consequently, the team has grown considerably in numbers and depth of knowledge to meet this need.� For more information, please visit our website www.mmass.co.uk or call +44 (0)1224 894498
We invite you to visit the Marex stand (3A80), at the forthcoming SPE Offshore Europe Conference and Exhibition on 3rd to 6th September, 2013, at the AECC in Aberdeen.
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Heidelberg Oil Field
Julia Oil Field
FMC Technologies secures subsea equipment orders for Anadarko’s Heidelberg Field
McDermott lands subsea work at Julia field
FMC Technologies, Inc. has received orders from Anadarko Petroleum Corporation for subsea equipment for its Heidelberg field. The Heidelberg field is located in the Green Canyon section of the Gulf of Mexico in 1,618 metres of water. FMC Technologies’ scope of supply includes five enhanced horizontal subsea trees, tree mounted controls, two manifolds and other associated tooling and equipment.
Subsea 7 wins Heidelberg development work Subsea 7 has won a contract with Anadarko Petroleum Corporation and its partners for the Heidelberg development in the Gulf of Mexico.
The scope of the work includes the engineering, fabrication and installation of risers, pipelines and flowlines in water depths of more than 1,600 metres. Project management and engineering work is to begin immediately at Subsea 7’s Houston office. Offshore operations are scheduled to begin during the fourth quarter of 2014 with pipe-laying activities being performed by the Seven Borealis
McDermott International has landed an engineering, procurement and construction (EPC) contract from ExxonMobil to provide subsea infrastructure for the US supermajor’s US$4 billion Julia development in the US Gulf. Under the contract, McDermott will provide EPC services on the jumpers, four suction piles associated with the manifold, subsea pump, pump transformer and subsea distribution unit / umbilical termination assembly. It will also provide the transportation and installation services for the manifold, suction piles, flying leads, subsea pump system, the power and control umbilicals and the SDU / UTAs. McDermott will also carry out mechanical completion and testing of the tie-back system at the ultradeepwater development. Work under the contract is to start immediately in Houston, with offshore installation starting in the second quarter of 2015 and continuing through to the end of 2013.
Oceaneering secures umbilical contract for the ExxonMobil Julia Project
Oceaneering International, Inc. has secured a contract with ExxonMobil to supply a production control umbilical for its Julia field development located in the Gulf of Mexico Walker Ridge block. The order is for an electro-hydraulic, steel tube umbilical approximately 22.5 kilometres in length. Product manufacturing will be performed at Oceaneering’s facility in Panama City, Florida, with delivery scheduled for early 2015. The umbilical will be used to supply hydraulic control
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I www.yourindustrynews.com I intelligent online marketing I www.projectsogp.com I online market intelligence fluids, chemicals, and electrical power signals to operate and monitor the subsea wells and manifold used in the field. The water depth at the installation location is approximately 2,195 metres.
FMC Technologies receives subsea equipment order for ExxonMobil’s Julia development FMC Technologies, Inc. has received a subsea equipment order from ExxonMobil for its Julia development.
The Julia field is located in the Gulf of Mexico Walker Ridge area in an approximately 2,100 metre water depth. FMC Technologies’ scope of supply includes six subsea trees, a manifold and associated tie-in equipment.
2H Offshore awarded detailed design project with Exxon Mobil Corporation
2H Offshore, an Acteon company, has been contracted by ExxonMobil to conduct the detailed design of two 10 inch production steel catenary risers for ExxonMobil’s Julia Phase 1 development. The Julia development will be a subsea tieback to a moored semi-submersible in approximately 2,133 metres of water.
Technip secures substantial subsea contract for the Julia project in the Gulf of Mexico Technip was awarded a substantial lump-sum contract by ExxonMobil for the development of the Julia field.
The contract covers the project management, engineering, fabrication, installation and precommissioning of more than 48 kilometres of 10.75 inch outer diameter insulated flowlines, steel catenary risers and flowline end terminations. Technip’s operating centre in Houston, Texas will perform the overall project management, with detailed flowline design being completed by Genesis, Technip’s wholly-owned subsidiary. The flowlines and risers will be welded in Mobile, Alabama. The offshore installation is expected to be completed in 2015 by the Deep Blue, one of Technip’s deepwater pipelay vessels.
First Subsea to supply FPS mooring connectors for Delta House
LLOG Exploration has awarded First Subsea a contract to supply subsea mooring connectors for the Delta House floating production semisubmersible (FPS) in the Gulf of Mexico. The FPS will be in Mississippi Canyon 254 in 1,373 metres depth of water and will accommodate production from several area fields. The Delta House project will include an oil export line, a gas export line, and a number of subsea systems. The export lines will connect the FPS to existing downstream pipeline infrastructure. The Delta House will have a production handling capacity of 100,000 barrels per day (bpd) of oil, 240 million cubic feet per day of gas, and 40,000 bpd of water.
Aker Solutions receives US$150 million contract award from Husky Aker Solutions has won a US$150 million contract with Husky Energy to support Husky’s activities at the White Rose field offshore Canada.
The scope of work includes studies, modifications, engineering, procurement, construction and installation (EPCI) and campaign maintenance services. The duration is five years with an option to extend the contract for as many as 10 one-year periods. The project will employ about 70 management and engineering employees onshore, as well as 20 people on rotation offshore.
Wood Group PSN first with Hess in Gulf of Mexico
Wood Group PSN (WGPSN) will deliver operations and maintenance services to Hess Corporation’s Baldpate production platform in the deepwater Gulf of Mexico, under a new five year contract. WGPSN will also provide these services to Hess for the Tubular Bells and Stampede deepwater facilities in the Mississippi Canyon and Green Canyon regions of the Gulf of Mexico when they come on stream in the future. The contract will lead to the creation of up to 100 new jobs in the region. WGPSN will develop a computerised maintenance management system to track the maintenance and repair of rotating equipment and maintenance parts. They will also manage the inventory of engineering parts.
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Breaking the ice with new products
6m accommodation module
6m dual zone refrigerated container The Ferguson Group is a privately owned group of companies headquartered in Aberdeenshire, Scotland. Specialists in the rental of DNV 2.7-1/EN 12079 certified offshore containers, refrigeration/freezer modules and engineering/accommodation modules, the Ferguson Group has been servicing the global oil and gas industry for over 35 years through its bases in UK, Norway, Australia, Singapore and UAE and its partners located 6m Zone 2 around the world.
Workshop
In the past six months the Ferguson Group has launched several new products including a 6m accommodation module designed specifically for the Middle East and Asia regions, 6m dual zone refrigerated module and two Zone 2 workshops (3m and 6m). The new 6m accommodation module was announced in June at the 14th Asian Oil, Gas and Petrochemical Engineering Exhibition (OGA) in Malaysia, providing an opportunity for delegates to learn more about the new 6m accommodation module. In July Ferguson Group announced their new range of Zone 2 workshops. The 3m and 6m workshop modules have been designed and manufactured in-house at the Group’s purpose built manufacturing facility. The modules are fitted out with workbench, vice, caged
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shelving electrics and lighting specifically for a Zone 2 environment. The 6m workshop is fitted with a manual internal lifting crane, which extends out to 1m from the module. Where required the 6m unit can be fitted with appropriate Zone 2 air conditioning system. Ferguson Group Business Development Manager Steven Simpson commented, “These new Zone 2 units are an excellent addition to our product range. We are expecting to see demand particularly for the 6m workshops, fitted with the optional Zone 2 air conditioning system, from service companies working on projects based in Africa, Middle East and Australasia.” IceBlue Refrigeration Offshore, a member of the Ferguson Group, is a specialist in providing refrigeration and freezer solutions for offshore transportation and storage. The company recently carried out extensive market research resulting in the launch of its DNV 2.7-1/EN12079 6m dual zone refrigerated/chiller module manufactured specifically for the offshore energy sector. The new product provides the solution for transporting or storing a range of perishable foodstuff that requires specific storage conditions. Capable for providing cooling in either a single or
I www.yourindustrynews.com I intelligent online marketing I www.projectsogp.com I online market intelligence dual zone compartment simultaneously in a -30oC to +20oC ambient temperature range, the 6m dual zone refrigerated/chiller module is suitable for use in a range of climatic conditions. The built-in easily moveable bulkhead means the module can quickly be set up as either a single or dual zone module, each compartmentalized section is fitted with an independent controller configurable to regulate the temperature specific for that section. The 6m dual zone modules are available from bases in UK, Norway, Australia, Singapore and UAE as well as the Group’s partners currently located in Brunei, East Timor, Ghana, India, Indonesia, Kazakhstan, Kenya, Kristiansund, Libya, Malaysia, Malta, New Zealand, Philippines, Russia, Trinidad and Victoria.
3m Zone 2 Workshop
BP announces new Clair Ridge jackets safely installed West of Shetland
Technip and DOF awarded contract for four new pipelay support vessels
BP and its co-venturers, ConocoPhillips, Chevron and Shell, are pleased to confirm the safe installation of the Clair Ridge platform jackets, a major milestone in the Clair Ridge project.
The joint venture formed by Technip (50%) and DOF (50%) was awarded by Petróleo Brasileiro S.A. (Petrobras) eight contracts. These contracts cover the construction of four new pipelay support vessels (PLSVs) and operation in Brazilian waters to install flexible pipes. The combined value for Technip is approximately US$2.1billion.
Clair Ridge is a US$7.1billion investment in the second phase of development on the Clair field which lies 75km to the west of the Shetland Islands. The project will comprise two new bridge-linked platforms, as well as new pipeline infrastructure to connect to processing facilities on Shetland. Read more at: www.youroilandgasnews.com
Petrobras confirms potential of Sergipe Basin’s Farfan area Petrobras has announced the results of the first extension well 3-SES-176D (3-BRSA-1178D-SES), informally known as Farfan 1, located in the BMSEAL-11 concession area, block SEAL-M-426, in the ultradeep waters of Sergipe Basin.
Two of the PLSVs will have a 300-ton laying tension capacity and will be fabricated in Brazil with a high national content. The other two vessels will be designed to achieve a 650-ton laying tension capacity, thus enabling the installation of large diameter flexible pipes in ultra-deepwater environments, such as the Brazilian pre-salt. Vard Holdings Limited (“VARD”), one of the major global designers and shipbuilders of offshore and specialized vessels, will be in charge of the design and construction of the four PLSVs. Read more at: www.yoursubseanews.com
Empowerment in the workplace: help or hindrance?
The well is located 104 km from the city of Aracaju, some 5 km from the discovery well and at a water depth of 2.476 meters. The well confirmed a 51-meter thick reservoir with good permoporosity characteristics.
Empowerment in the workplace was first developed in the 1950s but has recently become much talked about as a promising solution to some of the challenges imposed on the business community today. Faced with competitive demands for lower costs, higher performance, increased flexibility coupled with skilled staff shortages, it’s no surprise that organisations have increasingly turned to employee empowerment as a way to survive.
Read more at: www.youroilandgasnews.com
Read more at: www.yourcommunicationnews.com
The results obtained confirm the extent of the previous light oil discovery in the Farfan area, in turbidite sandstones of the Upper Campanian (Calumbi formation) in line with the October 11, 2012 release.
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Gorgon LNG Project
its own dedicated hydraulic power unit for optimum control.
AusGroup secures Gorgon LNG contract extension in Australia
The range of equipment to be handled by the DLS in the Gorgon and Jansz-Io fields will include subsea structures and foundations and heavy lift spools.
AusGroup Limited subsidiary AGC Industries Pty Ltd has been awarded further fabrication work with CB&I and Kentz Joint Venture on the Chevron-operated Gorgon Project. The contract extension for the manufacture and supply of Shear Keys to the Gorgon Project brings the total amount to more than 3,000. Shear keys are important components for modular construction and are being used to secure the liquefied natural gas plant modules on Barrow Island. The manufacture of the Shear Keys will be undertaken at AGC’s fabrication facility in Kwinana, before being transported to the Australian Marine Complex for shipment to Barrow Island. This contract extension takes AGC’s total contracts value on the Gorgon Project to more than US$100 million. Overall, the contracts have created more than 280 local jobs.
Caley Ocean Systems wins contract for Gorgon Project
Caley Ocean Systems has been awarded a contract by Subsea 7 to design, manufacture and supply a deepwater lowering system (DLS). The DLS will initially be deployed by Subsea 7 on the Chevronoperated Gorgon project, located off the northwest coast of Western Australia, to lower subsea structures weighing up to 950 ton in water depths in excess of 1,300 metres. The DLS comprises two double drum traction and storage winches and fully redundant controls, all mounted on an integrated grillage structure for rapid mobilisation onto the pipelay and heavy lift vessel Sapura 3000. The system will connect to a deepwater lowering beam and connector. Each set of winches has
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AusGroup lands US$33 million scaffolding contract on the Gorgon project
MAS Australasia Pty Ltd. (MAS) a subsidiary of AusGroup Limited, has secured an initial US$32.9 million contract with CB&I and Kentz Joint Venture on the Chevron-operated Gorgon Project. The contract has been awarded for ongoing scaffolding services. Strong performance and delivery may position AusGroup to secure further work over the life of the construction project. MAS has been commissioned to erect multi-purpose scaffolding which will be used to provide access for insulation, painting, installation and other works undertaken on Barrow Island. Expected to initially create at least 80 local jobs, the scope also includes the provision of key MAS management personnel and the use of a specialised in-house Scaffold Management System. MAS will also assist with the planning, design, engineering and coordination of scaffolding on the Project.
Emerson Process Management awarded US$67 million in valve technologies contracts
Emerson Process Management has been awarded contracts by Chevron Australia Pty Ltd. that are valued at US$67 million to provide control valves and valve actuators to help ensure the efficient and safe flow of natural gas at the Gorgon Project, one of the world’s largest natural gas projects. Emerson Process Management is providing the majority of the control and shutdown valves for the
I www.yourindustrynews.com I intelligent online marketing I www.projectsogp.com I online market intelligence project. Specifically, the contracts include more than 1,000 control valves, actuators, and valve controllers from Emerson. Additionally, Emerson’s Roxar subsea wet gas meters will also be used to provide real-time, accurate measurements of hydrocarbon flow rates and water production. Emerson’s Fisher® valves and valve automation technologies provide the ability to accurately manage the production of gas, resulting in tighter and more accurate control that increases overall system efficiency and safety and helps ensure environmental compliance. Fisher FIELDVUE™ digital valve controllers provide automated configuration, as well as improved control valve calibration and tuning. Their built-in diagnostics enable technicians to remotely monitor the health of valve assemblies and can alert them to pending issues before they affect operations.
Diamond Offshore wins US$640 million BP contract
Diamond Offshore has secured a three-year drilling contract from BP valued at US$640 million to drill up to four exploration wells off south Australia with a new Moss CS60E-design, harsh environment semisubmersible rig to be built at Hyundai Heavy Industries in South Korea. The initial US$585,00 dayrate is subject to upward adjustment for certain increased operating costs and equipment modifications. Upon delivery, expected after November 2015, the 3,050 metre capable dynamically-positioned semi-submersible will drill the wells on four permits in the Ceduna sub-basin. Each of the four wells is expected to take more than 200 days to drill.
Transfield Worley secures US$61 million Mangahewa contract
A joint venture between Transfield Services and WorleyParsons has been awarded a US$61.3 million contract for Todd Energy’s Mangahewa gas plant in Taranaki, on the west coast of New Zealand’s north island. The scope of work includes project management, engineering, procurement and construction of the MET2 Gas plant project. The work is scheduled to be carried out within 18 months.
PTTEP awards multi-million chopper deal
PTTEP Australasia has awarded a multi-million dollar contract to Bond Helicopters Australia to support its oil and gas operations in the Timor Sea. This is the first major contract in the region for Bond. Under the deal, Bond will provide three Eurocopter EC225 helicopters to support PTTEP’s Timor Sea operations. Flights will depart from Mungalalu-Truscott
in north Western Australia. The contract is for a five-year period with flight operations scheduled to start in November 2013. PTTEP Australasia operates 13 exploration permits in Australia including Montara and Cash–Maple in the Timor Sea.
ConocoPhillips selects FMC Technolgies for US$26 million contract in Australia FMC Technologies has won a US$26 million order from ConocoPhillips to supply subsea equipment for the third phase of the US operator’s Bayu-Undan gas and condensate field development in the Timor Sea off Timor-Leste.
The contractor will deliver subsea trees, wellheads, jumper kits and associated control systems under the deal. ConocoPhillips and its partners plan to drill several wells at the field to boost gas deliveries to the Darwin liquefied natural gas plant located about 450 kilometres to the southeast under the proposed phase three expansion, with a final investment decision due in mid-2013.
AJ Lucas lands US$86 million QCLNG trunklines contract in Australia AJ Lucas Group Limited has executed a contract with QGC Pty Limited for the construction and installation of gas and water trunklines for the northern region of the Queensland Curtis LNG Project.
The contract value is US$85.5 million and is to be undertaken in a joint venture with Spiecapag Australia, each party having a 50% interest in the joint venture. The contract is scheduled to commence construction in mid to late July 2013 with practical completion due by March 2014.
Kentz awarded US$100 million contract on Ichthys LNG Project
Kentz Corporation Limited has been awarded a US$100 million largely reimbursable contract for the underground electrical and instrumentation package for the Ichthys liquefied natural gas (LNG) Project in Darwin, Australia. Leighton Contractors has awarded this contract to work in alliance with Kentz’s Construction Business Unit, as part of the main civil works package for the Ichthys Project’s onshore LNG facilities. The contract duration is expected to be 17 months from mobilisation to final handover in the fourth quarter of 2014. The scope of Kentz’s contract includes the installation of an earthing system that will be integral to the plant and the installation and testing of all underground electrical, instrumentation and telecommunication cables.
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Petronas Bintulu LNG Complex Petronas first floating LNG project selects Exheat
Extrusion Exheat has been awarded the contract to supply the hazardous area electrical heaters and control solutions for the Petronas floating liquid natural gas facility. The Petronas floating liquefied natural gas (FLNG) will be among the world’s leading FLNG vessels, scheduled for operation in 2015. With a 1.2 million tonne per annum capacity, it is expected to operate 365 days a year at the Kanowit gas field, converting gas into liquefied natural gas with production destined for Malaysia and other world areas.
Petronas selects Honeywell’s acid gas removal technology for floating LNG project
Honeywell’s subsidiary, UOP, has secured a contract from Petronas, to deliver its acid gas removal technology for the world’s first floating liquefied natural gas (FLNG) project. Under the contract, Honeywell will provide its UOP Amine Guard FS technology to remove carbon dioxide and hydrogen sulfide from the liquefied natural gas (LNG) feed streams. The US-based technology company has developed the UOP Amine Guard FS process to reduce acid gas contaminants to very low levels prior to liquefaction. Petronas and UOP have jointly worked to design the acid gas removal system to obtain an optimised process capable of expansion and handling various feed stream contaminant concentrations.
PetroChina secures Indonesian rig
PetroChina subsidiary Singapore Petroleum Company has secured a rig for its upcoming drilling campaign at the Naga Utara gas discovery on the Mahakam Hilir production sharing contract in Indonesia. The rig would be mobilised from South Sumatra in mid-July 2013 to the well site in Samarinda, East Kalimantan, with the well expected to spud by the end of September 2013.
DMAR Engineering lands CNOOC FEED double
DMAR Engineering has landed a front end engineering design contract from China National Offshore Oil Corporation (CNOOC) for development options on the Liuhua 11-1 and Lihua 16-2 oilfields. CNOOC’s internal research institute is currently evaluating how to develop the eastern South China sea pair, which lie in water depths of 340 metres and 404 metres. A tension leg platform with full drilling capacity is under study as one option, with a semisubmersible being the other. CNOOC is to decide on which development option to move ahead with. The tension-leg platform would be the country’s first deepwater floating production platform and first dry tree production platform. It would also be the first tension-leg platform to have been made in China.
Emerson to provide services for South China Sea Project
CNOOC Limited has selected Emerson Process Management to provide process automation, safety, and asset management technology for a gas production project in the South China Sea. The deepwater project includes the Liwan 3-1 field, jointly developed by CNOOC and Husky Energy Inc., and the CNOOC developed Panyu 34-1 field. CNOOC will use Emerson’s DeltaV digital process automation
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I www.yourindustrynews.com I intelligent online marketing I www.projectsogp.com I online market intelligence system and DeltaV SIS™ process safety system to manage operations from the Panyu 34-1 offshore platform. The project will have a 30-year lifespan, with first production expected in May 2014.
Aker wins US$15 million Malaysian work
Aker Solutions has been awarded a contract to supply 24 sets of splitter wellhead systems for use at Murphy Oil’s Block SK 309/311, off the coast of Sarawak in East Malaysia. The US$15 million contract also covers deliveries of ancillary equipment and services over the next threeyears and carries an option to be extended for a further year. The majority of the equipment for the project will be made at Aker’s surface wellhead manufacturing facility in Batam, Indonesia. Meanwhile, the shear-safe surface gate valve actuators, which are used to improve the management of oil and gas flow under pressure, will be manufactured at Aker’s Port Klang facility in Malaysia. The company’s offices in Kuala Lumpur and Singapore will carry out the engineering and project management on the contract.
quarter of 2014 after its scheduled delivery from Daewoo Shipbuilding & Marine Engineering in South Korea. The operating day rate is fixed at US$600,000 for the three-year charter, lasting through the first quarter of 2017. Chevron plans call for 28 subsea wells to be drilled at the four fields under its Indonesia deep-water development scheme.
Boskalis awarded US$60 million Malampaya work
Royal Boskalis Westminster has won a contract to install a depletion compression platform (DCP) at Shell’s Malampaya gas field near Palawan Island, off the Philippines. The deal, which has been valued at about US$60 million, involves seabed preparation, rock installation, platform transportation and installation work. The Malampaya deepwater project is a joint venture between Shell, Chevron and the Philippine National Oil Company. Gas from the field is transported onshore via pipeline where it is used as feedstock by several power plants. The expansion of the project involves linking the DCP, which is currently being constructed by Keppel, to the existing production platform via a permanent bridge. This bridge will also be placed by Boskalis.
Eni gets rig for Song Hong basin prospect
Work was scheduled to begin early in 2014. The contract will utilise the company’s new multi-purpose construction vessel NDeavor and four anchor handling tug supply vessels.
Drilling is scheduled to commence during June 2013, with exact timing subject to rig release by the previous Operator, Mitra Energy. Pursuant to the terms of the farmout agreement with Eni Vietnam B.V., Neon will be carried through the drilling of the Cua Lo well up to a gross cost cap of US$25 million. Any costs in excess of the cost cap will be paid by the parties in accordance with their respective working interests.
Hallin lands US$6 million new Natuna contract
Eni Vietnam BV has secured the Ensco 107 jack up to drill the Cua Lo prospect on Block 105 in the Song Hong basin shelf offshore Vietnam.
Interpretation and analysis of the 3D seismic data over the Cua Lo prospect is nearly complete, and the joint venture is finalising the precise location of the exploration well based on the results. Cua Lo has excellent potential for gas pay at multiple levels within an extensive submarine clastic depositional system.
Hallin Marine has been awarded work for its subsea operations vessel Ullswater at the Natuna gas field off Indonesia. The project, which has been valued at about US$6 million, would be carried out for a major engineering procedure construction, installation and commissioning contractor. The contract is scheduled to begin in June 2013 and will take about 30 days. The Ullswater will be used for the pre-commissioning of the pipelines. The contract also comprises project management and engineering services, saturation diving services and a pre-lay survey using Hallin’s work-class remotely operated vehicle - C-ROV.
Transocean’s new drillship secures contract off Indonesia
Chevron has awarded a three-year contract to Transocean’s newbuild drillship Deepwater Asgard for development drilling in the Gendalo Gehem development off Indonesia. Deepwater Asgard will go on contract in the first
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Petrofac win US$187 million Adco contract
Petrofac has won a US$187 million engineering, procurement and construction contract from Abu Dhabi Company for onshore operations at Bab Habshan-1 project. The contract was secured by Petrofac and its joint venture Mubadala Petroleum. The 20 month deal includes the provision of water injection clusters and wells, oil production wells, pipelines and transmission lines.
WorleyParsons lands US$90 million engineering contract for Al Shaheen
WorleyParsons Qatar will provide brownfield design engineering services ranging from front-end engineering to detailed design, to yield enhanced operation, production, safety and efficiency improvements for the existing facilities; and if so defined by Maersk Oil, design services for additional production and/or operational facilities. Under the “General Design Contract”, WorleyParsons Qatar will perform a significant volume of professional services man-hours with an estimated revenue of approximately US$90 million. The contract also provides a framework for the development of a mutually agreed set of key performance indicators, with an incentive scheme designed to promote and reward efficient performance and continuous improvement.
Petrofac awarded US$50 million Oman contracts
Petrofac has signed a US$50 million operations and maintenance deal with Oman Oil Company Exploration and Production (OOCEP). The three-year contract will see Petrofac deliver operations and maintenance at two new production facilities that are currently under construction, Musandam Gas Plant in Bukha and Abu Tubul gas facility.
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Petrofac will design and implement an Operations Management System on behalf of OOCEP and manage the initial transition from the commissioning to full operating phase.
Essar Projects secures contract from Gasco
US$55
million
Essar Projects has been awarded a contract from Abu Dhabi Gas Industries (Gasco) in Abu Dhabi. The US$55 million contract involves the engineering, procurement, construction and commissioning of a 110 kilometre, 24 inch, condensate pipeline from Habshan to Ruwais. The project needed to be completed within 26 months.
Petrofac gets US$500 million Bab Gas compression project in Abu Dhabi
Petrofac Emirates and its joint venture with Mubadala Petroleum, has been awarded a US$500 million onshore engineering, procurement and construction contract by Abu Dhabi Company for Onshore Oil Operations for expansion of compression facilities at the Bab Field, 150 kilometres southwest of Abu Dhabi city. Petrofac Emirates will undertake modifications to three of the existing compressor stations and install a new fourth facility. The scope of work also includes 27 well head facilities, associated gas pipelines, direct gathering manifold and modifications to remote manifold stations. The project will be completed in a phased manner in approximately 30 months whereupon commissioning will commence.
Chiyoda wins US$600 million Ras Laffan refinery job
Chiyoda Corporation has been awarded an engineering procurement, supply, construction and commissioning contract for the Laffan Refinery Phase 2 (LR2) project along with joint venture partner CTCI Corporation of Taiwan.
I www.yourindustrynews.com I intelligent online marketing I www.projectsogp.com I online market intelligence The project worth US$600 million and is expected to be completed by 2016. LR2 is an expansion phase which will process an additional 146,000 barrels per day of condensate. The products from the refineries such as Naphtha, Kerojet (A-1), Gasoil, Propane and Butane will be distributed domestically and meet and be designed to meet international customer demands for cleaner fuel products.
Contract finalised for US$460 million phase two development at Iran’s Mansouri field
Persia Oil & Gas Company has finalised a US$460 million contract to develop the second phase of Iran’s Mansouri oilfield to produce 75,000 barrels per day (bpd) by 2018. The company which signed a heads of agreement in May 2012, is to start work immediately, aiming for an initial output of 20,000 bpd in 20 months. Persia Oil & Gas will have to drill 22 wells, and build all surface facilities including a sweetening plant for 64.5 million cubic feet per day of associated gas.
NPCC wins US$766 million Umm Lulu contract
Larsen Toubro Arabia secures US$300 million engineering, construction contract from Saudi Aramco Larsen Toubro Arabia has secured an engineering, procurement and construction contract from Saudi Aramco worth US$300 million. The contract is for the set-up of gas processing facilities in the Midyan Gas Fields with a capacity to treat 75 million standard cubic feet per day of gas and 4,500 barrels per day of condensate. Larsen Toubro Arabia will also build about 90 kilometres of gas and condensate product pipelines. The project is planned to be completed in 37 months. The new facilities are expected to meet the Kingdom’s energy demands in the west coast region. Included in the contract are services for project management, detailed engineering, procurement, supply, fabrication, manufacturing, and inspection. It also involves transportation, construction, installation, testing, mechanical completion, pre-commissioning, commissioning assistance and performance testing.
Abu Dhabi Marine Operating Company (ADMAOPCO) has awarded the Abu Dhabi-owned National Petroleum Construction Company (NPCC) a US$766 million engineering, procurement and construction contract for the Umm Lulu field development project. Under the terms of the deal, NPCC will undertake the construction and installation of six new well-head towers along with a riser platform topside, 90 kilometre of infield pipelines, 125 kilometre of oil lines, fibre optic cables and brownfield modifications on two existing wellhead towers.
ZADCO awards Daewoo Shipbuilding & Marine Engineering US$796 million contract
Zakum Development Co (ZADCO), a subsidiary of Abu Dhabi National Oil Co, has awarded Daewoo Shipbuilding & Marine Engineering Co a US$796 million contract order to build oil production facilities in the Upper Zakum oil fields. The South Korean shipbuilder won the order in a consortium with Petrofac Emirates, with production facilities to be installed on artificial islands in the region.
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Setting yourself apart from other companies? Red Mist Media Interviews Nick Michaelson of Silver Fox You’ve been in the Wire and Cable Industry for over 30 years - what do you feel is the biggest change in the industry and has it changed the way in which you do business?
Well, over the past 30 years, I have seen an array of both positive and negative changes! For example, there has been a significant move to computerised labelling production, away from the manual solutions. This has saved a lot of time on projects which is a good thing. But, the trouble with some of these newer systems is that they are often not as durable as their predecessors. This may be due to cost restrictions becoming ever more important or it may be because manufactures aren’t sufficiently vigilant in designing the necessary durability and ensure their systems and the final printed products work satisfactorily in the environments for which they’re being offered. That affects all of us. For instance, when our customers see our independent test results, we’re frequently asked, whether we have “just tested the material”. Of course, there are some tests where testing only the material is specified in the test method - for example our recent IMO FTPC for tests on our Fox-Flo® tie-on cable label material for smoke & toxicity and surface spread of flames. Those sorts of tests aside, we ALWAYS insist on testing the finished printed label. It makes sense to us, to undertake rigorous tests on the finished product and not on just the material. I guess some manufacturers might test only their material, rather than the final printed label, perhaps to enhance their results, as seen in the market. On the other hand, we choose to give ourselves and our finished labels, a hard time in all our testing! That way we can really test our finished products to their extremes. It makes sense to us, and meets the expectations that we believe and know our customers have of us and our labels. We work in the oil and gas industry and, there, H2S is often an issue. We chose to test our labels for H2S exposure. The fact that they pass is a testament to the durability of our system. Actually, we know of no other labelling company that has tested their labels for H2S. As I mentioned earlier, there are positives and negatives. Our customers also have to save costs and so in a very important way, we can save them significant amounts of time, which is a positive. The negative is, there are fewer engineers able to take the time to plan and so take advantage of what can be significant time savings available, it makes our job a bigger challenge.
Where did “TIP time into profit” come from?
Actually, it came from our customers over a period of years. Each time a customer sees our system, we always get positive feedback. Often it’s because they see the significant time savings that can be achieved. It really does bring smiles to the faces of the engineers! We wanted to crystallise this into a few words. So we had a brain storming session, and came up with “TIP Time into Profit”.
In what way would you say Silver Fox’s cable labelling solutions set themselves apart from others?
Our solutions are continually evolving and improving. This comes both from our own product development team and most importantly, from user feedback. This feedback from our customers across the world is particularly helpful. It’s our gold dust, if you like. We know engineers are very sensible people and their common-sense approach matches exactly our own approach to labelling. That’s perhaps part of what brings the smiles to their faces when they see our solutions. What they want are solutions that are easy to set up and easy to use, powerful enough to address their real world needs; simple and fast to run. They want labels from a dependable source and the final products that are reliable and durable. We totally agree! I recently heard a story of one oil company being obliged to erect new scaffolding in a fabrication yard, to replace the cable labels that were falling off, even before the module floated out. Quality is important! That’s why our ISO accreditation, attention to detail and independent testing is so important to us and, ultimately, to our customers. We listen very hard to our customers. For example, after detailed discussions with a design engineering company, based near Chiswick, who were working on a large project in Kazakhstan; we designed and developed brand new Professional level software, specifically for use on their project. Doing this was a huge investment for us, but it also meant that we were then able to offer a solution that was really focused on, and relevant for, major oil and gas projects globally. What differentiates this software was and is the very powerful import functionality, enabling the user to take an Excel output directly from their design packages and easily selects the exact information required, with the minimum of fuss and with total accuracy. Everything can be done in seconds. By the way, for the first time, it made it possible for the user to produce the Cross-Ferruling information - for the wire makers in seconds. And how do we get all these improvements out to our users? Well uniquely, both our Advanced and Professional levels of software incorporate an automated web update module. So wherever our users are, in the background, their software is automatically downloading the latest improvements. It then alerts them they are ready to install these improvements. They keep up-to-date with our latest software and benefit from the feedback from other engineers, all completely free of charge. There are lots of examples of this. Here are just two both connected with our Professional software: When using our heat-shrink or non-shrink labels, there’s now functionality that allows a user to print the labels for both ends of their wire at the same time. Uniquely, our printer allows for two rolls of material at same time, via our universal guidance system. By organising our software and printer together, the net result can be that one roll is for one end and the other roll
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www.yourindustrynews.com I intelligent online marketing I www.projectsogp.com I online market intelligence I is for the other end. It’s a first in our industry. And for existing users, this is also backwards compatible. Variable duplication is another first. This is a very interesting option. It allows the user to duplicate each of the cable ID’s in different quantities. Cable specs often call for labels at fixed intervals, for example every five metres. Cable runs will vary in length, so the quantity of each ident required will depend on the cable length. With our system, this is easy. Different quantities of each ident can be prepared in moments, and then rapidly printed.
This all sounds very interesting, but how can an engineer get started?
The route into our solution is also straightforward. We offer something called “Fox-in-a-Box®” There are two levels, either Advanced or Professional (referring to the software). Both are supplied with everything a user needs - even the printer cable. We’ve developed our system so that it’s straightforward to setup and run. There’s also FREE telephone support that covers setup and questions at any time during operation. Particularly for set-up, we can arrange a call time convenient for our customer to talk them through right from opening the box. This usually takes about 30 to 45 minutes at the same time we talk them through the software and operation.
Why so much free?
We like to help, and we like satisfied customers. They’ve invested in us; so we’re keen to take the time to help them get the most from their investment. Satisfied customers come back!
Can you tell us a little bit about your system and all the different labels?
Everything goes through the same printer, the same software and even uses the same ribbon. So whether it is Fox-Flo® Low Smoke Zero Halogen tie-on cable labels, heat-shrink, non-shrink, two-part wire marking, wrap-round self-laminating labels. It’s still the same printer and the same ribbon with the same software. The software also drives all our laser range, so really the Fox-in-a-Box® covers everything. As we add more even more label options, these will be available via the same printer. The templates are updated via our automated web update functionality.
What sets Silver Fox apart from other companies?
The commitment of our team - who give exceptional service and support. The response time that flows from that commitment. Our sales department is different as well. In our world they’re the customer’s representative in the company; so look after our customers from the moment they make an inquiry right through to delivery. Our whole philosophy is that we’re there to help. Where there are questions or issues, as a matter of routine we follow up with our customers to make sure they’re satisfied and we’ve addressed all their questions. We don’t just assume that their silence is sufficient.
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As a UK manufacturer the delivery we offer is very, very good! Even for the very large project orders, we work with our customers to schedule deliveries to best suit them.
What would be, in your opinion, Silver Fox’s biggest achievement to date?
Well that’s an interesting question! I guess every stage, when we’ve been told “it can’t be done”. A good example would be our universal guidance system for use with our heat-shrink and non-shrink tubing. In this instance, we decided to use outside design agencies with all their powerful CAD packages. After days of intense work, they announced, that what we wanted to do, was impossible. Well, I’ll let you into a secret. We found an 85 year old engineer, who didn’t use computers and so didn’t understand that “Computer says No”. Between us and him, we made our new guidance system happen! Then, of course, winning the Queen’s Award for Excellence – International Trade in 2005. We were one of only 80 companies in the whole of the UK to achieve this. On a personal side it was meeting Her Majesty, The Queen as a result of winning this Award.
Are there any other recent developments that our readers should be interested in?
Our new Low Smoke Zero Halogen Fox-Flo® labels are a great step forward. To make things easy for the engineer these labels can be printed on the same printer, using the same ribbon and the same software as all our other labels. What could be easier? They’re also 1mm thick, giving them a good feel and better durability, over some of the thinner examples available from our competitors. Plus, they’re made in the UK! In making them, we selected the very best materials (as we always do) to ensure the very best performance. And so unsurprisingly, when we have them independently tested, the final printed labels have performed to a very high standard. On an observational note, we were surprised recently, when we were shown a data sheet from one of our larger US competitors, giving results from their UV testing. Looking closely we found that they were only reporting on their white labels. There was absolutely no indication whether they’d tested the finished printed label or just the material. Not surprisingly the test results appeared to be acceptable. Silver Fox is both cautious and thorough. We test ALL colours at the same time AND test them as final printed labels. So we’re proud to say that all our colours as finished printed labels have performed exceptionally well for 1500 hours of accelerated UV testing. We even expose our finished printed labels to salt mist spray tests, and, again, we’ve not seen this from other manufacturers.
Where do you see the market going?
For us, the market’s getting better, year on year. We’ve had a program of heavy investment for over 10 years. As a result of all this we’re seeing a solid growth in business. The investment is, of course, on-going.
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