edge cutting
WINTER 2015 / Issue 8
News
TWMA returns to ADIPEC Feature
Cost Efficiencies in Offshore Drilling Waste Management - Revolutionising Cuttings Handling Processes Regional Focus
Middle Eastern Expansion for TWMA
WASTE MANAGEMENT NEWS FOR THE OIL & GAS INDUSTRY FROM TWMA
WELCOME
Welcome to the Winter issue of Cutting Edge. Every quarter we bring you TWMA’s latest news from around the globe and exciting updates on our operations, solutions and people. We hope you enjoy reading this issue and look forward to keeping you informed in the New Year.
in this issue 3 4-5
Foreword News TWMA returns to ADIPEC TWMA - Maersk Oil North Sea UK Relationship Continues Investment and Redevelopment for TWMA’s Peterhead Base 6-7 Feature Cost Efficiencies in Offshore Drilling Waste Management – Revolutionising Cuttings Handling Processes 8-9 Regional Focus Middle Eastern Expansion for TWMA TWMA Sponsors ‘Environmental Innovation’ Award at Offshore Achievement Awards Continued Success in Egypt 10-11 People TWMA Makes Motocross Dream Come True Clean Sweep for TWMA at Motocross Event TWMA Rallies Support for Local Racing Duo
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CUTTING EDGE : WINTER 2015
FOREWORD
Welcome to the latest edition of Cutting Edge There is no doubt that 2015 has been one of the most challenging years that the oil and gas industry has seen for a long time. Like many companies weathering the storm, it has been necessary for us to look at the most effective and efficient ways to carry out our operations without ever compromising on safety, service or quality. Collaboration and strategic planning have also been crucial, to ensure that TWMA remains a leader in its field. Despite the challenging climate, I’m delighted to say that 2015 has seen significant growth, expansion and major contract wins for TWMA. Firstly, we are delighted to have been awarded two new contracts with Maersk Oil North Sea UK. We have built a strong relationship with Maersk spanning more than a decade, and these multi-million pound projects are testament to the highest quality of service and exceptional results that TWMA has delivered. Our Aberdeen-based team will be working on the Culzean development, one of the largest discoveries in recent years, and it’s a fantastic achievement to have been selected to support Maersk Oil on these projects. This month will also see us exhibit at ADIPEC in Abu Dhabi for the second year. As one of the world’s top three oil and gas events, the conference and exhibition provide excellent platforms for us to meet many new and existing clients, and to strengthen our presence in the region. We are currently working on several projects in the UAE and have invested significantly in infrastructure and research and development, to ensure the Middle East remains a key region for TWMA. As we continue through the last quarter of 2015 and into 2016, the challenges in this industry will no doubt remain with us. However, our performance this year is testament to the hard work and dedication of the whole TWMA team and we look forward with confidence to our performance next year.
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Ronnie Garrick Managing Director
We have built a strong relationship with Maersk spanning more than a decade, and these multi-million pound projects are testament to the highest quality of service and exceptional results that TWMA has delivered.
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NEWS
TWMA returns to ADIPEC In November, TWMA exhibited at ADIPEC in Abu Dhabi. This was our 2nd year at the exhibition, which is undoubtedly an ideal platform for further strengthening our presence in the Middle East.
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Ranked amongst the world’s top three oil and gas events, ADIPEC once again provided an excellent opportunity for TWMA to build and maintain important relationships with our customers in the Middle East.
TWMA at Adipec
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Following significant investments in developing local infrastructure, research and development and extending our service provision, we are working on a number of major projects in the region to ensure TWMA offers the safest and most cost-effective waste management solutions to the global oil and gas industry.
workforce of over 200 has allowed us to establish a talented, experienced team in our upgraded Abu Dhabi facility that can offer our range of market leading technologies repair and maintenance and manufacturing services locally. This results in us being able to offer maximum operational efficiency to our clients.
We have a local partnership with ESNAAD - the support services arm of Abu Dhabi National Oil Company - to work on the Upper Zakum field, the fourth largest oilfield in the world, in addition to two contracts with Abu Dhabi Marine Operating Company (ADMA-OPCO).
Ranked amongst the world’s top three oil and gas events, ADIPEC once again provided an excellent opportunity for TWMA to build and maintain important relationships with our customers in the Middle East. The event was a great success and a fantastic opportunity for us demonstrate our integrated drilling waste management services and environmental to new and existing customers.
The Middle East is a key region for TWMA, illustrated by our recent increase in staff numbers in the area. The TWMA Middle East
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CUTTING EDGE :WINTER 2015
TWMA - Maersk Oil North Sea UK Relationship Continues Building on a strong relationship with Maersk Oil North Sea UK (Maersk Oil) which spans more than a decade, TWMA has been awarded two major contracts. multi-million pound equipment investments and will create up to 20 new jobs. Our experienced, skilled team has been working closely with Maersk Oil since the development’s early stages, working on-site in Singapore with rig builder Hercules to develop solutions that utilise our proven technical know-how to design, manufacture and install best-in-class technology to handle drilling waste processing.
The projects involve work on the Culzean development – one of the largest gas discoveries in recent years in the UKCS – and
the continuation of provision of innovative technology across Maersk Oil’s Central North Sea operations.
To ensure we offer the best, safest and most cost-effective solutions throughout the projects, TWMA has made
Delivered using a 950kW electric drive within our proprietary TCC RotoMill® and EfficientC® equipment, the Culzean project involves TWMA providing drilling waste processing and waste management services for five years, with the option of two one-year extensions.
TWMA continue to provide existing drilling waste processing and management services for Maersk Oil’s Central North Sea projects, again utilising our TCC RotoMill® and EfficientC® technologies. The new agreement will continue for the next three years, with the option for two one-year extensions. By delivering exceptional results that improve operational efficiency whilst maintaining a quality service over a considerable period of time, we have nurtured a strong working relationship with Maersk Oil. We are delighted to have been awarded a new scope of work on the prestigious, high-profile Culzean development and a renewed agreement for the continuation of our services across Maersk Oil’s Central North Sea projects.
The second contract will see
Investment and Redevelopment for TWMA’s Peterhead Base Marking 17 years at its Peterhead base, TWMA continues to invest significantly in the facility to ensure it remains a hub of excellence. The facility has been the basis of huge UK operational activity for the company, following an initial £1.7million investment which began in 2008.
In July this year, we relocated TWMA’s fabrication and maintenance teams from our facility in Tullos, Aberdeen, bringing a 50-strong workforce to Peterhead’s Dales Industrial Estate. This strategic move now gives us the ability to facilitate operations, fabrication and
maintenance - all under one roof.
On-site maintenance allows us to establish a consistently faster and smoother system for our clients as our TCC RotoMill® system eradicates downtime during processing operations.,
The facility is core to TWMA’s onshore waste handling contracts in the UK North Sea and facilitates up to 90,000 tonnes of oil-based mud cuttings and oil slops every year. It also remains the focal point for our local and international rental fleet, and the commission and development of TWMA’s sector-leading
technical capabilities.
An increased fleet ensures that TWMA meets and exceeds the demands of our clients, and acts as a global support function.
As global environmental legislation continues to become ever more stringent, the demand for TWMA’s services increases worldwide. The Peterhead site will continue to play a fundamental role in meeting this increased demand and allows us to maximise operational efficiencies as we look to continue our strategic growth plans.
TWMA’s Peterhead Base
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TECHNOLOGY
Cost Efficiencies in Offshore Drilling Waste Management – Revolutionising Cuttings Handling Processes As operational expenditure (OPEX) continues to come under close scrutiny, TWMA has assessed each element of the drilling waste disposal process, carefully examining the services offered to the global offshore market whilst also observing purchasing trends.
whilst honouring challenging environmental responsibilities.
This process has resulted in significant cost saving solutions for the oil and gas sector and has also revolutionised traditional thinking when considering drill cuttings handling as a whole,
While some operators may have become reactionary when it comes to contracting firms for waste management treatments, we believe that it is important for decision makers to take a step back and now consider the waste management process in its entirety, which should encompass waste handling, treatment and disposal.
A Holistic Service
Legislation, Efficiency and Ethics
It has become commonplace for operators to appoint several service companies to perform environmental and additional offshore services such as slops treatment, pit and tank cleaning, and rig clean-up operations.
What’s more, with regulatory frameworks tightening from country to country, a comprehensive and progressive waste management service from one supplier ensures that the legislation is adhered to. This is crucial, as it is essential that operators are performing up to standard where increasingly stringent legislation is in place for drilling waste disposal. For example, there is a perception in the industry that enhanced water-based drilling fluids (WBDFs) are a superior environmental choice compared to non-aqueous drilling fluids (NADFs). However, NADFs remain unrivalled when it comes to the provision of lubricity, temperature and formation stability, solids tolerance, protection from dangerous gases and hydrate suppression, as well as other operational challenges observed in deep wells.
However, by considering these services as fundamental parts within a complete service offering, operators can quickly and easily identify an effective, integrated service provision from the initial planning stages. Few organisations are capable of delivering drilling waste management services as an integrated package which effectively reduces the number of resources, personnel, logistics, footprint and costs. However, this is the TWMA approach and it’s a proactive one which offers optimal cost efficiencies and also decreases the likelihood of safety or environmental incidents that may occur when utilising multiple teams.
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TWMA recognises that to shift this perception will lead to improved waste management planning and activity, and our TCC RotoMill® technology has been designed to not only eliminate this
CUTTING EDGE : WINTER 2015
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The TCC RotoMill® offers operators maximised performance efficiencies while simultaneously reducing expenditure and environmental footprint, as it eliminates the need for drilling waste to be disposed of onshore or in central disposal sites.
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From Concept to Execution environmental risk, but also offers operational cost savings to the operator. Utilising TWMA’s thermomechanical desorption processing solutions ‘at-source’ offshore, the TCC RotoMill® is capable of recovering more than 99% of the non-aqueous base fluid (NABF) from the NADF cuttings waste stream, which allows operators to recoup drilling waste costs and recover and reuse undamaged base oil at site. Traditionally, at-site cuttings treatment has not been considered, as operators instead opt for costly skip and ship or bulk transfer operations. The TCC RotoMill® offers operators maximised performance efficiencies while simultaneously reducing expenditure and environmental footprint, as it eliminates the need for drilling waste to be disposed of onshore or in central disposal sites. Due to a combination of increasingly stringent discharge legislation, ethical awareness has become a fundamental issue in the sector. As organisations lean towards more environmentally friendly waste management practices, the global oil and gas industry is pursuing more suitable, efficient and cost effective methods of handling, treating and reducing offshore drilling waste.
The TCC RotoMill® has been identified as an effective solution and has led to several industry firsts for the company, including the first offshore processing contracts in Europe, North Africa, West Africa and the Middle East. Varying rig specifications can mean operators might be reluctant to accommodate waste storage and processing equipment. However, TWMA’s ability to redefine the scope of solutions has eradicated perceived misconceptions. By employing environmental management at the planning stage, TWMA offers full-project scope expertise. This encompasses environmental management, where teams work closely with clients at the planning stages to identify and develop the best solutions for waste generated by drilling operations, thus eliminating wastes being handled and brought ashore, or to central disposal sites. To complete this particular element of TWMA’s comprehensive service, the company is fully licensed for the provision of reporting and documentation and can support with efficient, reliable and proven waste management data for reporting purposes at any time during a project.
From initial concept development, right through to project execution, TWMA teams across the globe are assisting clients in the design, manufacture and fabrication, integration and maintenance of a robust, reliable and efficient waste management system offshore. Not only is this proving successful in terms of cost efficiency and enabling operators to meet exceptionally tight financial targets, but – with the use of technology such as the TCC RotoMill® - TWMA’s complete service also allows operators to meet ambitious environmental, production and safety responsibilities as they continue operations around the world. And that’s TWMA’s primary objective. TWMA’s knowledge of the field, its complexities and fully integrated drilling waste management services is unrivalled. Our ability to examine the drilling waste management process and produce the most relevant service and technologies for each client provides an effective ‘one-stop-shop’ for complete offshore drilling waste management.
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REGIONAL FOCUS
Middle Eastern Expansion for TWMA Due to continued and sustained growth in the Middle East, we are delighted to have invested in larger onshore premises in Abu Dhabi.
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Our expansion into larger premises is testament to our continued success in the UAE as we progress as a leader in our field.
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Having outgrown our offices within ESNAAD’s Mussafah Offshore Supply base, we have re-located to Prestige Tower 17 in Abu Dhabi, to accommodate our existing onshore staff and provide space for future growth. Following two flagship drill cuttings management and thermal treatment contract awards (known as the UZ 750K project) in partnership with ESNAAD, TWMA has considerably increased staff numbers in offshore and onshore crews, growing from 50 to more than 200 staff within
the past 18 months. In doing so, we are proud to have created hundreds of jobs in the local region, and these developments have also led to the requirement for an additional onshore maintenance and storage facility, adding to TWMA’s existing onshore support facilities. Working for one of the UAE’s most prominent, highperforming oil companies in the Upper Zakum field, the first award, valued at $20 million USD, was signed by TWMA in late 2012 for the design,
commission and operation of an advanced solids control and fluid recovery system for the artificial islands project’s North and South islands. The second contract, signed for a value of $56 million USD late last year, saw TWMA become the exclusive sub-supplier of waste management services for Central and West islands, whilst completing the same work scope required for the North and South islands . We were also awarded two contracts with the Abu Dhabi Marine Operating Company
(ADMA-OPCO) which are key to our expansion in the region. The first three year contract involves the utilisation of offshore jack-up rigs combined with our skip and ship services. The second contract has an initial duration of six months with the potential for extension, and involves excess cement handling services for ADMA-OPCO’s Satah al-Razboot (SARB) islands.
our field. These major contract
Our expansion into larger premises is testament to our continued success in the UAE as we progress as a leader in
development of our services in
wins also underpin TWMA’s world-leading service offering in terms of scale, concentration of drilling, re-injection of treated cuttings and all water-based returns. As the largest drilling waste management company in the Gulf Cooperation Council (GCC), we are now ideally placed for further growth and are currently discussing future additional GCC states.
TWMA Sponsors ‘Environmental Innovation’ Award at Offshore Achievement Awards 8
CUTTING EDGE : WINTER 2015
Continued Success in Egypt TWMA has been awarded a $5million, two-year contract extension supporting BP’s offshore Mediterranean drilling operations in the West Nile Delta (WND) gas fields.
TWMA’s onshore facility in Alexandria, Egypt
Contracted for the provision of onshore processing at its thermal desorption treatment facility in Egypt’s Ameriya Free Zone, this extension confirms BP’s continued confidence in TWMA to handle and process hydrocarbon contaminated drill cuttings and resulting waste material. We are delighted to have been awarded this two-year extension following an initial two-year contract supporting BP’s drilling activities in the Mediterranean Sea and we look forward to working further with
The TWMA Egypt team
We are delighted to announce that TWMA has once again taken up the sponsorship of the Environmental Innovation Award at the 2016 Offshore Achievement Awards. The award recognises an outstanding environmental technology, process or system developed for the offshore oil and gas or renewables industry which has reduced the
environmental impact of the industry, supported sustainability and created new business opportunities as a result.
BP in the region. We have established a long-standing relationship with BP which continues to strengthen due to our commitment to the safe handling of drilling waste in an environmentally sensitive region. We have 49 employees working on Egyptian operations, who have undertaken extensive training in order to work both on and offshore. There is no doubt that this contract extension stands as testament to the hard work and dedication of the entire team.
recognition of the hard work and commitment of our team to bring our ground-breaking TCC RotoMill® technology to market, years ahead of the industry and other potential competitors. To have the opportunity to be a part of the award from a very different perspective is fantastic and we are delighted to sponsor the Environmental Innovation Award again this year.
In addition to supporting this particular category for the past two years, we were also winners of the award in 2014 for our unique TCC RotoMill® and TCC RotoTruck®. Winning the award in 2014 was
OAA Awards 2015
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People
TWMA Makes Motocross Dream Come True Scottish motocross rider, Shaun Simpson, has undertaken his first professional race in the USA, thanks to sponsorship from TWMA. What’s more, he came in at a very impressive fourth place, overall. As part of our continued commitment to corporate social responsibility, TWMA funded Shaun’s travel and participation in the American Motorcyclist Association (AMA) Motocross Championship race during The 2015 Lucas Oil Pro Motocross Championship, Red Bull Unadilla National Weekend, in New York State between 7-9 August. The 27 year old, from Fife, turned professional in 2005 and it’s no wonder he’s tipped for future success, having already scooped British and Belgian motocross championship GP wins, in addition to several Grand Prix overalls including overall position, pole position and a maiden 1-1 scorecard at the Belgian MXGP. Commenting on his performance at the event, Shaun said: “I’ve always been curious about the AMA Nationals and it has been a mini dream to head over and give it a try. With the support and backing from TWMA, that dream turned into a reality this year and I’m absolutely delighted to have placed fourth, it was a truly fantastic experience.”
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I’ve always been curious about the AMA Nationals and it has been a mini dream to head over and give it a try.
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With several of our employees involved in motocross, TWMA has a strong link to the sport and we were delighted to be able to support a talented, Scottish rider to take part in the series for the first time. For more information on the AMA Motocross Championships visit www.promotocross.com For more information on Shaun Simpson visit www.shaunsimpson.com
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CUTTING EDGE : WINTER 2015
TWMA Rallies Support for Local Racing Duo We were delighted to be “rallying” support for local racing driver, Chris Collie, as he geared up for the RSAC Scottish Rally 2015, in June and the rest of the season with co-driver Mark Fisher. Having taken gold sponsorship of the rally team’s Mitsubishi Evo 6 for 2015, TWMA enabled Chris and Mark to participate at Scottish Championship level this season. Competing in several challenging rounds throughout the country from February to October, Chris explained: “We couldn’t do any of this without the support of our sponsors. Competing at this level takes a significant amount of funding in order to keep our vehicle in the best possible condition, so we would like to take this opportunity to express our thanks.” As well as the typical annual
Scottish rally events such as the Speyside Stages, the Snowman, and the Granite City rallies, this year Chris was also invited to race in the McRae Rally Challenge - a unique event set up to commemorate the 20th year since Scottish rallying legend, the late Colin McRae, won the World Rally Championship in 1995. Chris continues: “The McRae Rally Challenge was a really exciting two-day event held at Dunfermline’s Knockhill racing circuit. Having won the “Colin McRae, ‘if in doubt, flat out’” award in 2011, and having admired Colin since I was young, I was truly honoured to
be asked to take part with other highly regarded competitors including Colin’s dad, Jimmy, and brother, Alister McRae, as well as Kris Meeke (current Citreon World Rally Championship (WRC) driver), Hannu Mikkola (ex WRC champion), Stig Blomqvist (ex WRC champion) and Gordon Shedden (British Touring Car Championship driver). This was a potentially one-off event where I got to compete amongst some brilliant drivers, so for me, this was an experience of a lifetime.”
co-driver’s seat as Chris took me for a quick spin around the track, and I have to say that he is an exceptionally talented driver.” As a company, we take pride in nurturing local talent. With several racing enthusiasts at TWMA, we have been cheering them on at every opportunity, as well as joining them at the Scottish Rally Championship Awards on 28th November.
TWMA Director, Douglas Garrick, adds: “I have been lucky enough to take to the
Clean Sweep for TWMA at Motocross Event This summer, three of our employees scooped the impressive 1st, 2nd and 3rd places at the Orkney, Shetland and Caithness inter-county motocross event, held at Norton in Burray, Orkney. Despite tough competition in the event - which saw Caithness invited to compete for the first time since 1982 our motocross enthusiasts secured the top three spots in the individual riders race. Each competing for his own home county, Stuart Craigie, James Ross and Joe Garrick were placed first, second and third respectively.
test came in the individual race where everything depended upon personal performance. The race was tough, with many talented motocross riders taking part, and it was great that team TWMA came in first, second and third. This has now set the bar really high for next time round and it’s certainly encouraged a bit of healthy competition!”
Stuart Craigie said: “We have all been keen motocross riders for some time, so we are all really quite competitive but the real
Thanks to 2015’s success, it is hoped that the inter-county motocross event will become an annual event.
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Engineering solutions to eliminate waste
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