Oil & Gas Today Special Edition #1 July – September 2023

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Editor’s Message

Dear Reader,

We are happy to be launching this special edition of Oil & Gas Today magazine at Thailand Oil & Gas Roadshow 2023. With sights of the current upbeat view from OPEC on oil demand growth for 2024 and with Indonesia's government green light hoped for as new partners prepare to come on-board upstream company giant gas project.

In this edition we would be covering Chevron Thailand eyes greater Thai gas production and some snippets of the movers and shakers in the industry.

Digitalization is also making waves in the industry with Assisted reality playing an effective role in the oil and gas industry and propelling the fourth industrial revolution. Yes! The future is here indeed.

So lay back, kick your shoes off and indulge in this edition of Oil & Gas Today and we look forward to seeing you at Thailand Oil & Gas Roadshow 2023 face to face.

Kenny Yong

Guest Editor

Managing Director of Fireworks Media (Thailand) Co., Ltd.

Content Editor Jidapa Saengma Editor.th@asiafbi.com

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Reverse

Launching Frames

Our launching frames have a multiplicity of uses as evinced in the various pictures below. These include the launching of remotely controlled underwater vehicles, other tethered underwater vehicles such as sub-sea vehicles. They are also used to launch diving bells so as to transport divers to the required depths to conduct underwater work and salvaging, i.e loss and recovery operations

Hose Reel

Umbilical Winch

6

• PTTEP And Partners Awarded A Sizable Green Hydrogen Block In Oman, Signifying The Key Milestone Into Future Energy

• OR Joins Hands With OSCT Indonesia To Kick Off Oil Spill Response Courses

• Indonesian Giant Gas Project Targets Approval This Year

• Chevron Eyes Greater Thai Gas Production

7 8 10 12

• OPEC Upbeat Over 2024 Oil Demand Outlook Despite Slowdown 13 14

• Petrobras Embraces Digital Transformation With SLB’s Cloud-Based Tech To Optimise Oil & Gas Production

• Totalenergies Looks Forward To Developing Nigeria’s Offshore Oil & Gas Industry Further Thanks To 20-Year Extension

MARINE & OFFSHORE TECHNOLOGY NEWS

• MOL, PETRONAS & SDARI Win Aips For LCO2 Carrier And FSO Design 17

• Shell To Use New AI Technology In Deep Sea Oil Exploration

• World’s First Biofuel Application In A Fully Pressurized LPG Carrier

PTTEP and Partners Awarded a Sizable Green Hydrogen Block in Oman, Signifying the Key Milestone into Future Energy

PPTTEP is gearing towards the development of future energy together with 5 world-renowned companies in a large-scale green hydrogen project in the Sultanate of Oman. This reflects PTTEP’s efforts under the strategy to become a low-carbon organization and fostering sustainable growth. The green hydrogen project is expected to commence the production in 2030.

Mr. Montri Rawanchaikul, Chief Executive Officer of PTT Exploration and Production Public Company Limited (PTTEP), stated that PTTEP’s subsidiary FutureTech Energy Ventures Co., Ltd. (FTEV) with its 5 partners based in South Korea and France have been awarded the concession block and entered into a Project Development Agreement and a Sub-usufruct Agreement with Hydrom Oman SPC (Hydrom), a subsidiary under the Omani government, for the exclusive business development and production rights of green hydrogen project for 47 years in Block Z1-02 located in Duqm, East of the Sultanate of Oman. The development of the sizable green hydrogen project marks the company's first stepping stone to the clean energy business with targeted production capacity of approximately 220,000 tons of green hydrogen per year.

The consortium will carry out the feasibility and technical studies, in order to finalize the total capital expenditure requirement for the project.

Block Z1-02 covers approximately 340 square kilometers in Duqm, Oman. The consortium consists of FTEV, a group of South Korean companies including POSCO Holdings, Samsung Engineering Co., Ltd., Korea East-West Power Co., Ltd., and Korea Southern Power Co., Ltd., and MESCAT Middle East DMCC, a subsidiary of ENGIE, French leading renewable company.

This project will be developed as the integrated green hydrogen production including installed renewable energy from solar and wind with planned capacity of approximately 5 gigawatts (GW) and the

green hydrogen plant constructed at the awarded concession area. Another development is the ammonia production plant to convert the majority of green hydrogen production output into green ammonia at the capacity of 1.2 million tons per year for exporting to South Korea which will be located in the Special Economic Zone at Duqm. The remaining green hydrogen will be served for Oman’s domestic consumption. The construction is expected to take place in 2027, followed by targeted commercial operations date in 2030.

"Oman is at the forefront when it comes to driving substantial development in green hydrogen. Being granted the exclusive rights for this large-scale project is a significant milestone for PTTEP and our partners in expanding business into clean energy in one of the world’s high potential areas for renewables. PTTEP will leverage our experience and understanding of the energy business in Oman for over 20 years to contribute to the project development. The participation in this green hydrogen project will reinforce other developments of new form of energy in the future, supporting our goal to become a low-carbon organization," Mr. Montri said.

At present, PTTEP has invested in the E&P businesses both upstream and midstream in Oman, including Oman Block 61, a large onshore gas field; PDO (Block 6), Oman’s largest onshore oil field; Mukhaizna (Block 53); Oman Onshore Block 12; and Oman LNG, the only LNG gas liquefaction complex in the country.

Block Z1-02 covers approximately 340 square kilometers in Duqm, Oman.

OR Joins Hands With OSCT Indonesia To Kick Off Oil Spill Response Courses

PPTT Oil and Retail Thailand (OR) started a cooperation with OSCT Indonesia by signing MoU (Memorandum of Understanding) in order to working closely with PTTOR an accredited oil and chemical spill training course (IMO Level 1, 2 and 3 and OPRC IMO HNS Operations and Manager level) in Thailand that complies with National Oil Spill Contingency Plan, regulations and international standards.

Mr. Wisan Chavalitanon, Senior Executive Vice President, Organization Effectiveness, and Mr. Perawat Vachiropasnan, Vice President, OR Academy, PTT Oil and Retail Business Public Company Limited (OR), in collaboration with Mr. Yodi Satya, Chief Operating Officer, Oil Spill Combat Team Indonesia (OSCT Indonesia), and Mr.Tossaphol Sukreungreun, Managing Director, OSCT (Thailand) Co., Ltd., signed a Memorandum of Understanding for Cooperation in Oil Spill Response Training under the International Maritime Organization (IMO) Standard at OR Academy, Wang Noi District, Phra Nakhon Si Ayutthaya Province.

Mr. Wisan said "OR Academy houses Thailand's largest firefighting and oil spill response training center, which provides both theoretical and practical oil spill containment knowledge, located within Saraburi Oil Depot, Sao Hai District, Saraburi Province. This time cooperation is a step to develop training courses to handle oil spill incidents (Oil Spill Response: OSR) in Thailand and Southeast Asia."

It is aimed at upgrading the services provided by OR Academy and turning it into a specialized QSHE training center equipped for risk management and emergency prevention at the national level, especially in terms of professional firefighting and oil spill response training, both on land and water.

Moreover, this milestone will strengthen the potential of OR Academy's personnel, shaping them into an expert and empowering the center to issue certificates for those that achieve specific oil spill response training courses in line with the International Maritime Organization (IMO) standard.

Besides, this cooperation is to expand our business networks to include external customers, both local and international, that wish to receive training from the OR Academy's training units. It paves way for the development of additional courses - particularly ones that necessarily comply with the requirements of the Marine Department, thus boosting the ability to suppress emergencies and aid society, communities while also broadly mitigating environmental impacts.

Indonesian Giant Gas Project Targets Approval This Year

GGovernment green light hoped for as new partners prepare to come on-board Inpex-led project

Japan’s Inpex is hoping Indonesian authorities will soon approve its latest development plan for the Abadi liquefied natural gas project that has long languished on the drawing board.

Inpex on 3 July 2023 confirmed that in April it had submitted an updated version of the revised plan of development for Abadi, the giant gas field discovered more than two decades ago on the remote offshore Masela production sharing contract in the Arafura Sea, near to Indonesia’s maritime border with Australia.

“We are now working towards reaching a final investment decision in the latter half of the 2020s and starting production in the early 2030s,” Inpex said.

Against this backdrop, supermajor Shell — currently Inpex’s sole partner for Abadi —

is in advanced negotiations to divest its 35% equity to a partnership of Indonesia’s national oil company Pertamina and its Malaysian counterpart Petronas.

For at least eight months, Indonesian government agency officials have been firmly putting Petronas in the frame, although the company has not commented on any such move.

In contrast, a senior Pertamina official last September confirmed to Upstream that the Indonesian company was preparing to bid for a stake in Abadi, which has been designated a project of national strategic importance.

Shell has been trying to divest its Abadi interest since before the Covid-19 pandemic, with industry sources in 2019 suggesting a price tag in the $1.6 billion ballpark.

The Abadi PoD now under consideration involves a floating production, storage and offloading vessel to be deployed on the giant offshore gas condensate field, with produced gas being utilised as feedstock at a two-train 9.5 million tonnes per annum greenfield onshore LNG project.

It is envisaged that Abadi will also deliver 150 million cubic feet per day of natural gas via pipeline to domestic customers in the east of the Indonesian archipelago.

Drillship for the Abadi LNG Project. Source: Inpex

green light hoped for

new partners prepare to come on-board Inpex-led project

Abadi PSC

The Abadi field was discovered in 2000 on the Masela PSC, which has been extended until November 2055.

Appraisal drilling subsequent to the successful Abadi-1 wildcat has resulted in recoverable reserves being pegged at more than 10 trillion cubic feet of gas.

Production rates of 1.8 billion cubic feet per day of gas plus up to about 35,000 barrels per day of condensate have been touted via the proposed FPSO.

Inpex’s latest development plan includes a carbon capture and storage (CCS) scheme that would neutralise all carbon dioxide emitted from gas production at Abadi.

“Detailed survey work in the planned construction site for the LNG plant and its surrounding areas had been under way until it was suspended due to the impact of the Covid-19 pandemic,” Inpex added.

“Subsequently, considering the need to contribute to a net-zero carbon society and aspiring to make the project cleaner and more competitive amid energy transition, we have been consulting with the Indonesian authorities on a revised development plan introducing CCS.”

Government

as

Chevron Eyes Greater Thai Gas Production

CChevron Thailand Exploration and Production wants to increase domestic gas supply to allow the government be less dependent on costly liquefied natural gas (LNG) imports, with the company ramping up petroleum production in the Gulf of Thailand.

The US-based firm was awarded a licence to explore and produce petroleum at Block G2/65, which covers an area of 15,030 square kilometres in the gulf, under a production-sharing contract signed with the Department of Mineral Fuels on May 30.

The department awarded another two licences for Block G1/65 and G3/65, spanning 20,133 sq km, to PTT Exploration and Production Plc in Round 24 bidding held last year.

Chevron expects to produce natural gas at Block G2/65, but also believes it will discover some crude oil at the site, which is located near the Pailin gas block where Chevron is operating, said Chatit Huayhongtong, president of Chevron Thailand.

The company is preparing to conduct a seismic survey to study the geological structure in detail in order to determine the feasibility of petroleum discovery.

It plans to drill two exploration wells within six years. If exploration confirms good prospects, further investments will be made to develop the wells into production wells.

Petroleum from this block will strengthen Thailand's energy security in the future, said Mr Chatit.

Chevron plans to make additional investments in the Pailin block and is in the process of asking authorities to extend the petroleum production period for another 10 years.

The production licence at Pailin, which comprises the Pailin and North Pailin fields, expires in 2028. Gas production at Pailin is in a range of 420-450 million cubic feet.

If the Department of Mineral Fuels approves the request for an extended production period, he said Chevron will make further investments.

Chevron also runs the Bechamas petroleum field in the gulf which is currently shut down, but the company is preparing to resume operations.

Scientists have stated natural gas is the cleanest type of fossil fuel used to produce energy. More domestic gas production would help Thailand buy less LNG, which was blamed for driving up power bills last year, while also supporting the country's plan to use cleaner energy.

"Our investment plans will not only be good for Thailand in terms of tax and royalty collection, but will also help the country deal with expensive energy prices," said Mr Chatit.

Chevron also supports Thailand and Cambodia holding talks over an overlapping claim area (OCA) between the two countries in order to jointly develop a new petroleum site in the upper part of the Gulf of Thailand. He said the next government should push ahead with the OCA talks, as Chevron is ready to participate in petroleum exploration if the negotiations are successful.

OPEC Upbeat Over 2024 Oil Demand Outlook Despite Slowdown

OOPEC will likely maintain an upbeat view on oil demand growth for next year when it publishes its first outlook later this month, predicting a slowdown from this year but still an above-average increase, sources close to OPEC said.

OPEC's forecast for 2024 will likely be lower than the growth it expects for this year of 2.35 million barrels per day, or 2.4%, an abnormally high rate as the world moves out of the coronavirus pandemic.

Even so, it would still be well above the annual average of the past decade with the exception of the pandemic years and above predictions by the International Energy Agency, which sees a major slowdown in demand growth next year to 860,000 bpd.

OPEC and the IEA have repeatedly clashed in recent years, with OPEC criticising the IEA, which advises industrialised countries, for what it sees as irresponsible predictions and subsequent data revisions.

Oil demand growth is an indication of likely oil market strength and forms part of the backdrop for policy decisions by OPEC and its allies, known as OPEC+. The group in June extended supply curbs into 2024 to support the market as concern over weakening demand pressured prices.

For 2024, three OPEC sources said that while demand growth was likely to show a slowdown, it would not be as severe as the IEA predicts, and growth will likely be above 1 million bpd and below 2 million bpd. A fourth source close to OPEC said demand will likely rise by at least 1.5 million bpd.

"It can be expected that the increase in oil demand in 2024 will be much lower than 2023," one of the OPEC sources said, adding that it could be between 1.5 million and 1.7 million bpd.

OPEC is expected to publish its first demand forecast for 2024 in its monthly report on July 13. OPEC did not immediately respond on Thursday to an emailed request for comment.

"It will be more bullish than the IEA," another source said of OPEC's 2024 demand view.

Top officials from OPEC countries at a conference this week such as Amin Nasser, CEO of state-owned oil producer Saudi Aramco, expressed optimism over the oil demand outlook despite economic headwinds weighing on prices.

"Asia is growing. China alone between 2019 and 2023, three million bpd growth, India one million bpd growth, so there is a pick-up in demand," he said.

Oil demand forecasters often have to make sizeable revisions given changes in the economic outlook and geopolitical uncertainties, which this year included China's lifting of coronavirus lockdowns and rising interest rates.

OPEC originally predicted demand growth in 2023 of 2.7 million bpd in its first forecast published in July 2022, later revising it down to 2.35 million bpd.

Austrian police officers stand in front of the OPEC headquarters in Vienna, Austria, June 3, 2023.

Source: REUTERS

Petrobras Embraces Digital Transformation with SLB’s Cloud-Based Tech to Optimise Oil & Gas Production

OOilfield services giant SLB has been hired on a long-term contract by Brazil’s Petrobras, which is investing in AI and cloud-based technologies to ramp up production and set the foundation for achieving decarbonisation and net-zero targets.

According to SLB, this five-year contract is for an enterprise-wide deployment of its Delfi digital platform and covers Petrobras’ digital transformation from exploration, development, and production operations, including moving subsurface workflows to the cloud to significantly accelerate decision-making.

The oilfield services player highlights that this award represents one of Petrobras’ largest investments in cloud-based technologies and lays the groundwork for the Brazilian energy giant to achieve its net-zero goals.

Rakesh Jaggi, president, Digital & Integration at SLB, commented: “By leveraging AI, machine learning, and high-performance computing technology from SLB, Petrobras will drive aggressive efficiency and production increases across its E&P business. Leveraging the Delfi platform to digitally transform Petrobras’ E&P workflows, will improve efficiency and demonstrates its commitment to sustainability and energy transition.”

Furthermore, SLB explains that the Delfi platform realised “a significant reduction” in processing time for geological and geophysical (G&G) interpretation. As some workflows experienced a

reduction from hours to minutes, the company claims that AI and machine learning applications reduced fault interpretation time in petrophysical modelling workflows by 60 per cent.

SLB further underscores that Petrobras’ “large” investment in this digital technology for E&P is part of the Brazilian player’s plan to increase total operations production. No financial details about this deal were disclosed.

Back in April 2021, SLB partnered with Equinor and Microsoft to deploy the Delfi cognitive E&P environment, with seamless integration to the OSDU Data Platform to accelerate Equinor’s ability to integrate data at scale and improve decision-making.

A few months later, the company also launched PeriScope Edge to expand the depth detection range and improve resolution. This is a multilayer mapping-while-drilling service, which utilises the cloud and digital solutions to offer reservoir insights targeting optimal reservoir exposure while drilling to enhance well construction efficiency.

Come March 2022, SLB also disclosed that ConocoPhillips would use its cloud-based Delfi cognitive E&P environment to bring its reservoir engineering modelling, data, and workflows to the cloud.

Source: SLB

TotalEnergies Looks Forward to Developing Nigeria’s Offshore Oil & Gas Industry Further Thanks to 20-Year Extension

French energy giant TotalEnergies has secured the renewal of a production license offshore Nigeria, which will enable the oil major to further develop the hydrocarbons in the block covered by this license over a period of 20 years.

TotalEnergies, as the operator of OML 130 in Nigeria, revealed the license renewal on this block on Monday, 29 May 2023. Located 150 kilometres off the Nigerian coast, the OML 130 block contains the Akpo and Egina fields, which came into production in 2009 and 2018, respectively.

The production at the block amounted to 282,000 boe/d in 2022 while nearly 30 per cent was gas sent to the Nigeria LNG plant, contributing to Europe’s energy security. The French oil major highlights that the production start-up from a short-cycle project called Akpo West is expected by the end of 2023. Aside from this, the OML 130 license contains the Preowei discovery,

which is expected to be developed via a tie-back to the FPSO Egina.

Henri-Max Ndong-Nzue, Senior Vice President Africa, Exploration and Production at TotalEnergies, commented: “Through the OML 130 license renewal, TotalEnergies is pleased to continue its contribution to the development of Nigeria’s oil and gas sector. This 20-year extension will enable us to move forward with the FEED studies on the Preowei tie-back project which aims to valorize a discovery using existing facilities in line with the company’s strategy focusing on low-cost and low-emission assets.”

TotalEnergies Upstream Nigeria Limited operates OML 130 with a 24 per cent interest, in partnership with CNOOC (45 per cent), Sapetro

TotalEnergies in Nigeria.

Source: TotalEnergies

(15 per cent), Prime 130 (16 per cent), and the Nigerian National Petroleum Company Ltd as the concessionaire of the PSC. Previously, legal and fiscal uncertainties presented a hurdle for oil majors when it came to investing in new PSCs in Nigeria and many signed PSCs were approaching their expiration date.

However, Nigeria’s efforts to bring new investments into the oil and gas sector and boost production by tapping into the country’s deepwater hydrocarbon potential are hammered home not only by a mini-bid round for seven offshore blocks but also by the production sharing contracts (PSCs) for six offshore licenses, which were inked with oil majors last year, including the one for OML 130.

These renegotiated PSCs were revealed less than a month after President Muhammadu Buhari unveiled the Nigerian National Petroleum Company (NNPC), a development that saw the firm officially transiting into a limited liability entity as enshrined in the provisions of the Petroleum Industry Act (PIA).

TotalEnergies Secures 20-Year Renewal for OML130 Production License in Nigeria

MOL, PETRONAS & SDARI Win AiPs for LCO2 Carrier and FSO Design

Tokyo-based shipping company Mitsui O.S.K. Lines (MOL) has won approval in principle (AiP) from classification societies Det Norsk Veritas AS (DNV) and the American Bureau of Shipping (ABS) for a liquefied CO2 (LCO2) carrier. Additionally, ABS has granted an AiP for a floating storage and offloading (FSO) unit.

Both the carrier and the FSO were jointly developed by MOL, Malaysian state oil company Petroliam Nasional Berhad (PETRONAS), and the Shanghai Merchant Ship Design & Research Institute (SDARI).

The official presentation ceremony took place on June 26 at the Kuala Lumpur Convention Centre, coinciding with Energy Asia, an international conference focused on promoting sustainable development and achieving net zero emissions in the Asian energy industry.

Since signing a memorandum of understanding (MoU) on February 7, 2022, MOL and PETRONAS have been studying optimal methods of ocean transport for LCO2 within the Asia Pacific and Oceania region. With the assistance of SDARI, the joint project completed the concept study for LCO2 carriers and FSO units.

Floating storage and offloading (FSO) units have been identified as essential floating facilities that facilitate the receiving, storing, and offloading of LCO2. FSOs are regarded as a highly effective solution in the burgeoning carbon capture, utilization, and storage (CCUS) market.

MOL said that the completion of these concept designs and acquisition of AiPs clears the way toward a flexible approach to transport needs in consideration of volume, transport distance, and direct transport to FSOs near offshore storage facilities.

“MOL is pleased with our achievement of the various designs of the LCO2 carrier and FSO in cooperation with PETRONAS and SDARI,” MOL Senior Managing Executive Officer Nobuo Shiotsu said.

“Development on a large scale is an essential step for the CCUS value chain within the Asia Pacific and Oceania region. Through the newly acquired AiP, the MOL Group will further accelerate this initiative

on the CO2 transport business to contribute to reducing society’s overall GHG emissions.”

“LCO2 carriers for CO2 transportation play a key role in the carbon capture and storage value chain. The acquisition of the AiPs further strengthens PETRONAS’ commitment in offering decarbonization solutions, aligned with our aspiration in establishing Malaysia as a leading CCS hub in the region,”

Upstream PETRONAS Executive Vice President and Chief Executive Officer Adif Zulkifli said.

“The concepts will be essential to LCO2 transportation and operation, and will boost CCUS development in the maritime industry. The acquisition of the AiPs is the new start and SDARI will continuously provide more and more innovative solutions to partners for the ambitious decarbonization plan,” said SDARI Vice President Zhou Zhiyong.

CG rendering shows offloading CO2 from LCO2 carrier to LCO2 FSO and injection unit.

AIP presentation ceremony.

Sources: MOL

Shell to Use New AI Technology in Deep Sea Oil Exploration

SparkCognition's AI algorithms will process and analyze large amounts of seismic data in the hunt for new oil reservoirs by Shell, the largest oil producer in the U.S. Gulf of Mexico.

SparkCognition and Shell have formed a technology collaboration that aims to accelerate the pace of imaging and exploration of subsurface structures using generative AI technology.

By using advanced AI algorithms to process large amounts of data and automate the analysis, SparkCognition says it aims to improve efficiency and speed of exploration workflows, leading to increased production and higher success rates.

The traditional approach to subsurface imaging and data analysis is time intensive and costly, relying on terabytes of data, high-performance computing and complex physics-based algorithms to analyze and identify exploration opportunities. The proprietary generative AI approach being developed by Shell and SparkCognition uses deep learning to generate reliable subsurface images using far fewer seismic shots—as

little as 1% in completed field trials—than traditionally necessary, while preserving subsurface image quality; this offers substantial workflow acceleration and HPC cost-saving opportunities, opening the door to novel applications and further innovation.

The patented approach to oil and gas exploration is being applied to other complex problems where a reduction of data and time can have significant implications. This includes opportunities in onshore exploration, satellite imaging for weather patterns, national security and threat assessment.

“We are thrilled to partner with Shell to bring the power of generative AI technology to oil and gas exploration," said Bruce Porter, Chief Science Officer, SparkCognition. "Generative AI for seismic imaging can positively disrupt the exploration process and has broad and far-reaching implications across industries— driving greater efficiencies, lower cost and accentuating sustainability initiatives.”

SShell will use AI-based technology from big-data analytics firm SparkCognition in its deep sea exploration and production to boost offshore oil output.

World’s First Biofuel Application in a Fully Pressurized LPG Carrier

TThe World’s First Application of Biofuel using Green Methanol and Biomass-based Waste Liquid in a Fully-pressurized LPG Carrier

Marubeni Corporation, Biofuel technology research Co., Ltd. (BTR), and Tabuchi Kaiun Co., Ltd. have successfully implemented a biofuel initiative for vessels. This biofuel is a blend comprising approximately 24% biofuel and conventional bunker heavy oil (Very Low Sulphur Fuel Oil; VLSFO).

Three Japanese companies Marubeni Corporation, Biofuel Technology Research (BTR) and Tabichi Kaiun Co. have jointly performed fueling of a fully-pressurized LPG carrier with biofuel produced from biomass-based waste liquid and green methanol.

According to the partners, this is the world’s first application of biofuel using green methanol and biomass-based waste liquid in a fully pressurized LPG carrier.

For this initiative, biofuel was manufactured in Japan using technology jointly owned by Marubeni and BTR and applied to the Buean Reina, a vessel operated by Tabuchi and chartered by Marubeni.

The three companies said they achieved safe navigation of the vessel using the biofuel with an approximately 19% reduction in CO2 emissions per voyage.

The Keihin area, where the Buena Reina underwent refuelling, also boasts the largest scale port in Japan in terms of the volume of cargo handled, and this also represents the first time that an ocean-going vessel has been supplied with biofuel in this area, Marubeni noted.

Furthermore, as part of the refuelling operation on the Buena Reina, the world’s first pure battery tanker Asahi, a vessel operated by Asahi Tanker Co., Ltd., which uses renewable energy and was chartered by Marubeni, also achieved zero emissions of greenhouse gases (GHG emissions) during bunkering.

Going forward, the three companies plan to utilize their respective insights and know-how to incorporate various methods facilitating the reduction of GHG emissions, including CO2, while promoting and exploring initiatives to contribute to the reduction of environmental impacts.

Bunkering for BUENA REINA, with Marine Biofuel (B24).

Source: Asahi Tankers

Accelerating Decarbonization in Asia

SLB’s portfolio of transition technologies can help oil and gas operators reverse the concerning emissions trend in Asia by embedding sustainability into the foundation of every project.

Asia on the precipice of growth

By 2030, Asia will boast four of the world’s five largest economies, and much of that economic growth will be fueled by a significant increase in energy consumption. Asia is a strong demand centre, with growing economies, and energy security is a mandate across most countries in the Asia region.

According to the International Energy Agency, Asia emits half of the world's carbon dioxide.

As more and more Asia countries seek to accelerate the transition to carbon neutrality, this is where SLB comes to play in enabling reliable, accessible and affordable energy while rapidly decarbonizing for a sustainable future.

SLB — formerly Schlumberger — had undergone a rebranding last year. This was done to highlight its commitment to moving further, faster, in facilitating the world's energy needs today and tomorrow, while driving down greenhouse gas emissions (GHGs).

Source: SLB

Ushering in an era of sustainability with transition technologies

“As an industry, we have a mandate to deliver more energy with lower emissions. At the same time, demand growth is outpacing the speed of renewable or low-carbon energy capacity. This creates the balancing act of delivering energy the world needs while minimizing the impacts of climate change. As a global technology company

Amy Chua, President SLB Asia with scale, we can contribute to substantial emission reductions via our portfolio of transition technologies,” said Amy Chua, president of SLB Asia.

SLB engineers examined the company’s portfolio of products and identified more than 100 technologies that have the potential to help its customers lower their carbon footprint in their operations while simultaneously driving efficiency, reliability, and performance.

To determine and rank the impact of both these solutions and those still within the R&D process, SLB developed an oil & gas specific

impact quantification framework. The result today is the Transition Technologies portfolio, which includes 32 products and services from across the company that drive the most significant, quantifiable and repeatable benefits.

Additionally, SLB divided its transition technologies portfolio into five categories that include methane emissions, reduce or eliminate flaring, minimise well construction footprint, electrification of infrastructure, and full field development solutions.

SLB solutions in action

Since 2021, SLB’s Ora* Intelligent wireline formation testing platform had been introduced to multiple countries in the Asia region. The Ora platform is an alternative solution for determining minimum hydrocarbon in place and zonal deliverability; enabling dynamic reservoir characterisation in all conditions, including where previously impossible. This new innovative technology reduces carbon emissions by up to 96% in deepwater environments and reduces energy consumption by more than 50% on average.

According to Chua, Ora’s intelligent platform is a game-changer in the evaluation of exploration and appraisal activities. “The technology is gaining adoption across Asia. In a recent deployment, it reduced CO2 emissions by 2,130 metric tons, comparable to 481 cars off the road annually. These were the results from just two wells – imagine the hundreds of thousands of tons of CO2 emissions that we can avoid with the deployment of this technology across hundreds of exploration wells. With a strong exploration outlook in the region, I'm truly excited about the value this technology can generate; supporting our customers unlocking reserves, reducing cycle time and reducing emissions”

“As we develop new technologies, sustainability will remain a key element of every innovation. Well integrity is a key focus area and SLB is also reinventing the cement that is used in well construction, which comes with high carbon intensive manufacturing process with approximately one ton of CO2 per ton produced. An example of this is EverCRETE CO2-resistant cement system that we have deployed in Indonesia for a deepwater exploration well. EverCRETE contains a reduced volume of portland cement in its formulation, which lowers CO2 emissions and in this case, using the system reduced the CO2 footprint by 63% compared to traditional cement systems,” said Chua.

At 2023 CERAWeek, SLB introduced EcoShield; industry-first geopolymer technology. This innovative technology eliminates up to 85 percent of embodied CO2 emissions compared with conventional well cementing systems, which include portland cement. The EcoShield system has the potential to avoid up to 5 million metric tons of CO2 emissions annually—the equivalent of removing 1.1 million cars from the road each year.

Source: SLB

Turning challenges into opportunities

Today, it is estimated that 62% of the world’s oil production is coming from mid-life and late-life fields and this percentage is expected to reach 77% by 2030 with brownfields dominating the market in Asia. However, these mature field projects tend to have various constraints and complexities and required more intervention. Getting the best return from mature fields remains one of the greatest challenges for oil producing companies. Added to this is the push for a lower-carbon future, for which E&P operators are looking to better manage their brownfield projects.

“Most intervention spend on mature fields today is to restore production, but we can do more than production restoration. Through SLB's production enhancement projects (PEP), we believe tremendous opportunities can be unlocked at brownfield sites. This framework is not a single technology but rather a solution framework that helps our customers to improve intervention performance, accelerate production, and maximise brownfields recovery at a lower cost and lower carbon. In fact, some of these technologies used in PEP workflow are transition technologies that can optimize the carbon footprint,” said Chua.

In Asia, SLB has partnered with multiple clients to achieve production enhancement targets and is among the first region to pilot the PEP system.

“The energy system is complex and the pace of change differs around the world,” Chua said. “However the future of energy is lower carbon and a lower-carbon future requires innovative approaches to technology, ranging from the development of viable concepts to critical partnerships and industrial collaborations. To effect change, we must prioritise collaboration and rapidly scale up the infrastructure and ecosystem in the industry in order to meet the decarbonization agenda.”

“In addition, we also see huge opportunities for digital to drive decarbonization. With the availability of relevant data and computing power today, we can accurately track emissions targets, and at SLB, we will continue to invest, innovate and optimise our core operations to be more efficient and sustainable,” concluded Chua.

SLB is at the forefront of a technological revolution that is transforming the energy future. In 2022 alone, SLB transition technologies helped avoid over 700,000 tons of CO2e emissions — the equivalent of taking almost 160,000 cars off the road.

To learn more about SLB’s commitment to sustainability and how it is working to usher in a new era of decarbonization,check this out. https://www.slb.com/slb-solutions/slb-footprint-reduction

INDUSTRY 4.0 – THE WAY TO A SMART AGE

In the smart age, intelligent solutions provide an optimal analysis of sensor data and generate an abundance of useful information. This makes the daily work easier and safer. The most important prerequisites for this: trust and stability. VEGA provides future-proof applications, highest possible data security as well as maximum protection and confidentiality. Industry 4.0 with VEGA – for the long term.

User-friendly and secure –the V VEGA Tools app

Thanks to the sensor’s Bluetooth function, setup and commissioning is easier than ever – especially in hard-toreach locations or harsh industrial environments. When it comes to data protection and security, VEGA considers it extremely important to comply with the highest standards – from access management to secure data encryption.

VEGA Inventory System

VEGA Inventory System gives the supplier a reliable insight into the inventories of his customers at all times. The current measurement data is combined and compared to the values from the consumption history. This analysis optimises requirement, inventory and delivery planning. It also saves resources and costs.

myVEGA – Advantages in every phase

The myVEGA customer portal provides you with comprehensive information via permanent and complete digital storage of all documents relating to your VEGA products – Discover your benefits in every single phase.

Planning

In your personal customer portal you'll find everything you need to plan your own customised measurement technology. Access a universal configurator, create and store projects and generate 2D and 3D drawings of your configured instruments.

Setup and commissioning

In your personal account, you will find all the important documents and test certificates for setting up and commissioning your VEGA sensors. Manage your access data with “Pins & Codes” for contactless setup and commissioning using the VEGA Tools app.

Ordering

After planning, you can view the prices and delivery times via myVEGA and request quotations for your specific products or order directly online. This includes everything from your individually configured instrumentation to accessories and spare parts.

History

Keep an eye on all your transactions. With myVEGA you can view your entire order history –regardless of the date of your registration. Track the status of your order. The shipment tracking function keeps you informed about the progress of your order.

Ensuring Safety of Oil and Gas Workers

MSagellan X’s worker safety solution offers near realtime visibility to front line safety operations, which enhances worker situational awareness and compliance assurance

Studies have shown that as many as 80 to 90% of serious injuries and accidents are attributed to human error due to workers not following procedures, the design of work environments, or lack of situational awareness among workers. To meaningfully reduce safety incidents and accidents, heavy industries like oil and gas must focus on equipping workers with the right tools and systems. This will enable a combination of worker empowerment and operational excellence for addressing human factors.

SOL-X Worker Safety Solution is an industry-leading connected worker platform that addresses issues brought about by human factors. It combines enhanced Control Of Work with a holistic approach to worker wellbeing

(Crew Protect), enabled by IIoT and analytics. Our solution addresses industry pain points such as limited visibility for compliance, highly administrative and manual paperwork, limited situational awareness and more. This SOL-X solution is compatible with major connectivity protocols such as Wi-Fi, Bluetooth, and Long-Range Bluetooth.

SOL-X Control Of Work provides an integrated software with streamlined workflows (permits, risk assessments, safety checklists). The technology offers near realtime visibility to front line safety operations, which enhances worker situational awareness and compliance assurance of having the right person, at the right location and at the right time working on the correct task.

SOL-X Crew Protect solution empowers workers to take ownership and accountability of their health and safety while encouraging positive behaviour change. In addition, we enable supervisors to proactively manage their workers’ workload and fatigue risk while enhancing worker wellbeing through the SOL-X SmartWatch.

Operational compliance previously relied on manual observations and human interventions. The SmartWatch allows the approach to be digitalised and automated in near real time. It enables visibility of worker movements, which is important during hazardous tasks and in high-risk zones such as enclosed spaces. Accidents at restricted work zones can also be reduced via usage of the SmartWatch, with workers receiving contextual warnings (GeoFence Alerts) in near real time when they approach these areas.

When workers need assistance, they can access the SmartWatch’s Crew Assist function that helps to contact their supervisor and immediately provide their location and task details. This speeds up response times, which is especially crucial for workers who sustain injuries while working in an isolated or remote location. The SOL-X SmartWatch also has a Fall Detection feature that sends a message to the Dashboard in near realtime when a fall is detected.

Timely communication is critical in cases of emergency, and to ensure that operations are performed effectively without compromising workers’ safety. Supervisors in control rooms can easily disseminate crucial information by using the dashboard to send a broadcast message to the workers on their smart watches.

In addition, the SmartWatch monitors the worker’s heart rate and issues heart rate alerts when triggered, notifying the worker to hydrate and rest. The SOL-X SmartWatch also has a Noise Monitoring and Alerts feature which triggers when workers are exposed to consistently high noise levels.

The typical working environment in oil and gas industries may at times expose workers to extremely hot working conditions, resulting in heat injuries. The SOL-X SmartWatch provides heat stress alerts for the worker to take necessary steps to avoid or mitigate heat-induced injuries if the SmartWatch detects that the worker has been exposed to a dangerous level of heat over a sustained period. On the other end of the spectrum, the SmartWatch also monitors and notifies the worker with cold alerts to take the necessary precautions when he is exposed to cold temperature for at least 15 minutes.

The watch also allows workers to conveniently record and track their work rest hours, enabling supervisors to more effectively balance worker workload and ensure fatigue levels are well managed across the workers. By doing so, the risk of accidents resulting from fatigue declines.

Lastly, the Fitness Tracker feature in the SmartWatch tracks daily steps and promotes healthy living. This data can be used to more effectively measure and track efficacy of Corporate Wellness programmes.

“At Magellan X, we are committed to providing a solution that ensures safety by anticipating incidents and accidents. We continue to innovate on our connected worker platform and the new features on fall detection, broadcast message and noise monitoring and alerts will further improve situational awareness for workers and operational visibility for supervisors on site.” Alister Leong, Chief Product Officer of Magellan X

Many organisations have implemented Control Of Work systems in a bid to resolve their operational issues, but many of these existing solutions are addressing these issues in isolation. To effectively maximise the benefits of a Control Of Work system, each worker within the worksite must be in a physically and mentally fit state.

However, current work practices and methods do not sufficiently combat the problems and effects of worker fatigue and concentration lapses, and that inevitably undermines the efficacy of the Control Of Work systems. The key to truly unlock operational excellence is enhancing the wellbeing of the workers. Digitalising and reducing manual processes while automating repetitive tasks can materially help save workers’ time, reduce their workload, and improve worker welfare.

Investing in smart worksite technology will improve operational visibility, situational awareness, and more efficient workflow management. On the AI front, leading indicators around operational excellence and safety compliance will enable more pre-emptive actions and proactive improvements to safety management systems. Our solution allows businesses to optimise their workflow processes, enhances compliance and delivers proactive worker behavioural change at the worksite.

Unlocking the Potential of AI in Accelerating Digital Transformation in the O&G sector

SSeismic exploration is the cornerstone of the oil and gas value chain. This means it also plays a critical role in the energy security of nations all over the world. As such, it is imperative for operators to leverage the latest technologies that are making the exploration process easier and more efficient than ever before.

While the energy industry has embarked on the path to digitalisation the processing of seismic exploration data is still a major challenge. As organizations generate more and more data, many lack the computing power and storage performance needed to tackle the task — particularly at scale.

However, by investing in leading-edge distributed storage solutions, like Huawei’s OceanStor Pacific Series, oil and gas companies can maximize computing power and unlock the full potential of high-performance computing (HPC). This, in turn, will enable them to find oil faster — much to the delight of their customers, shareholders, and investors.

What are the challenges to AI’s applications in the energy sector?

The application of AI in the oil and gas industry is as diverse as it is beneficial. However, as the industry braces for rapid future growth, it faces two significant challenges: the standardisation and availability of professional data, and the simplification and acceleration of training and inference using AI algorithm models. In response to these challenges, multinational technology corporation Huawei has developed innovative AI-enabled solutions.

Huawei’s approach to these challenges is two-pronged, focusing on data enablement and application enablement

On the one hand, the company is working to build a unified data platform that can break down data silos and improve team collaboration across disciplines from E&P. This initiative enables large-scale data computing and data sharing, and supports comprehensive studies within E&P. In turn, this greatly improves work efficiency while optimising the E&P workflow, and ultimately plays an important role to reduce the E&P cycle time.

On the other hand, Huawei provides high-performance computing clusters and massive storage systems to effectively improve HPC applications’ computing and storage performance. This approach allows enterprises to focus on their core services rather than being weighed down by infrastructure concerns. Huawei’s HPC cloud solution supports application integration and cloud-native applications, thereby not only enhancing the seismic data processing capability, but also optimising the key seismic processing workflows which significantly reducing the overall seismic processing timelines.

Huawei’s AI-enabled solutions in action

These benefits are more than merely theoretical. Huawei’s AI-enabled solutions have already delivered substantial success in the field. For instance, the firm has incorporated AI and pre-training development models into the oil and gas exploration field, resolving some longstanding issues.

Traditional oil and gas exploration technology largely depends on the manual collection and interpretation of geological data, resulting in geological models of oil and gas fields often riddled with uncertainties. Huawei’s approach incorporates AI and pre-training development models into the oil and gas exploration field, enabling exploration companies to interpret the oil and gas field geological models more efficiently and in a more refined manner. This not only makes previously unexploitable oil and gas fields accessible but also reduces production costs for difficult-to-explore fields.

But, what are its uses?

• Based on a large amount of unlabelled seismic data, the self-supervised learning technology is used to train a large seismic model under the Huawei Pangu CV model training framework, instead of having to start from scratch.

• The seismic AI model development period is shortened from months to days.

• The data usage and computing resources are effectively reduced, and the model precision is improved.

In another case study, Huawei addressed a significant challenge in oilfield development, where a large number of production wells were widely distributed and located in remote areas. Here, Huawei’s AI production optimisation system for pumping wells came to the rescue. The system utilises an AI algorithm model to detect dynamic

production changes of single well and group of wells. Based on the analysis results, the system can diagnose working conditions, forecast alarms, and adjust production parameters. Furthermore, the system can recommend production increase measures, thus promoting efficiency and productivity in well production management.

Commenting on the company’s moves in the subject matter, Li Yangming, CTO of the Oil and Gas Sector of Huawei Enterprise BG, said: “The oil and gas industry is no stranger to AI. It has been exploring and deploying AI technologies for many years. However, it is only in recent years has AI grown relatively mature, which can be deployed and replicated on an industrial scale. Due to potential crises such as labour shortage and skill gaps, there is now a stronger demand for AI in the oil and gas sector. We should seize the opportunities of industry digitalisation and digital industrialisation, fully leverage new technologies such as AI and big data, and accelerate the development of the oil and gas industry through technological innovation.”

Shaping the future

Digital technologies will become more pervasive in oil, gas, and new energy fields as we look to the future. With the synergistic interplay of cloud, edge, and device technologies, we can develop more intelligent and functional applications for the oil and gas and energy industry chain. These advancements will not only make the industry more intelligent but will also propel oil and gas exploration into a new era.

In this transformative journey, Huawei is poised to lead the charge with its AI-enabled solutions and commitment to innovation. As the sector embarks on the path of digital transformation, Huawei stands ready to unlock the potential of AI and redefine the landscape of the oil and gas industry.

Learn more about Huawei’s products and solutions in the oil and gas industry.

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