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October 2016

World Trends and Technology for Offshore Oil and Gas Operations

Offshore Israel update

Field development
economics
Rigless well
stimulation
Well control
FLNG market update
Hurricane modeling

1610off_C1 1 10/5/16 1:54 PM

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1610off_1 1 10/5/16 1:51 PM
 International Edition
Volume 76, Number 10
October 2016

CONTENTS
Celebrating 60 Years of Trends, Tools, and Technology

EASTERN MEDITERRANEAN PRODUCTION OPERATIONS

New regulatory framework should New cybersecurity lab examines computational FPSO........ 44
advance Israeli projects .......................................................... 26 Classification societies have worked with the offshore industry since
After years of deliberations, negotiations and amendments, the Israeli its inception to improve the safety and security of assets, but the face of
government recently adopted its final framework for regulation of the safety is changing. A new approach that extends beyond the physi-
countrys burgeoning natural gas sector. cal vessel has been conceptualized. Like the steel exterior, which is
designed based on mathematical descriptions, FPSOs and other vessels
OFFSHORE ECONOMICS have a cyberstructure operating on interconnected networks that, until
now, has been mostly unseen.
New approach to field development
can improve project feasibility ............................................... 30 Long-term demand still strong for FLNG units ....................... 46
Generating economic value from a field development plan comes Despite concerns over the fall in LNG spot prices and the lack of sanc-
through the art of linking varieties of disciplines, applying the science tioning for new floating liquefaction projects, capex on FLNG units will
of logical determination of boundaries, and finally engineering, plan- total $41.6 billion over the period of 2016-2022.
ning, and managing with courage and persistence.
New communications systems
GEOLOGY & GEOPHYSICS enhance safety, productivity ................................................... 48
Reprocessed survey reveals With the extended lifespan of an FPSO, communication and the ability
potential play in the Bonaparte basin..................................... 34 to pass along big data become a vital part of daily operations, making
In 2015, Spectrums Cartier-Main 3D multi-client seismic survey was it easier and more cost-efficient to invest in updated communication
reprocessed through a broadband workflow that included effective de- technology. Due to this, the industry is seeing an upward trend in terms
ghosting techniques and pre-stack time and depth migrations, achiev- of both reliability and bandwidth needs.
ing an extremely significant imaging uplift. The reprocessing enhanced
structural and stratigraphic elements at different levels, such as deep Recent storm modeling data can
Permian carbonate build-ups and Triassic horst blocks. improve offshore engineering design ..................................... 50
A recent research project carried out by the National Center for Atmo-
spheric Research under the Research Partnership to Secure Energy
DRILLING & COMPLETION
for America program, with financial support from the National Energy
Integrated MPD system aids Technology Laboratory generated a combination of observational analy-
drilling operation offshore Brazil ............................................ 38 sis and statistical and dynamical modeling that produced new views of
Deepwater presalt plays present significant challenges to well con- tropical cyclone activity in current and future climates.
struction that conventional drilling techniques are unable to resolve
promptly or profitably. An operator offshore Brazil was reminded of this SUBSEA
fact when attempting to reenter and explore the production potential of
a P&Ad well. Rigless stimulation saves GoM operator $15 million ............. 52
Because of the major assets required, the large crews needed for the
Change in drilling strategy brings operation, and the time-consuming operations of rig-up and rig-down, a
string of efficiency milestones to Troll ................................... 40 deepwater intervention can take a week or longer to complete for just
Advances in formation evaluation and drill bit technologies are now ex- a single well. The author describes a new method to restore produc-
tending the value of rotary steerable system-enabled drilling to record- tion within a significantly reduced amount of time, and with simpler
setting, single-bit runs that are significantly improving well efficiency logistics, without compromising safety or well control.
and economics in the mature Troll field.
Subsea well asset management comes of age ...................... 54
Self-installing float enhances Subsea well operations are at once an established form of asset support
deepwater downhole protection ............................................. 42 as well as a developing technology and service line. Key challenges in
In 2012, Churchill Drilling Tools introduced the first dart-activated this niche are, like most oilfield operations in the current environment,
self-filling float. Although the industry broadly welcomed this develop- rooted in economics. Well management for subsea assets performed
ment at the time, uptake initially was fairly limited, based partly on the by dedicated vessels are increasingly claiming greater efficiency than
perceived costs and risks of procedural changes in a $100/bbl environ- drilling rigs for well intervention operations.
ment. Four years later, however, a completely different environment
has emerged, with demand growing strongly for this simple technology
in deepwater operations, underlining the cost benefit of making the
change in procedure.

Offshore (ISSN 0030-0608). Offshore is published 12 times a year, monthly, by PennWell Corporation, 1421 S. Sheridan, Tulsa, OK 74112. Periodicals postage paid at Tulsa, OK 74112 and at
additional mailing offices. SUBSCRIPTION PRICES: US $123.00 per year, Canada/Mexico $145.00 per year, All other countries $202.00 per year (Airmail delivery $283.00). Worldwide digital
subscriptions: $123.00 per year. POSTMASTER: Send address corrections to Offshore, P.O. Box 3264, Northbrook, IL 60065-3264. Offshore is a registered trademark. PennWell Corporation
2016. All rights reserved. Reproduction in whole or in part without permission is prohibited. Permission, however, is granted for employees of corporations licensed under the Annual Authoriza-
tion Service offered by the Copyright Clearance Center Inc. (CCC), 222 Rosewood Drive, Danvers, Mass. 01923, or by calling CCCs Customer Relations Department at 978-750-8400 prior to
copying. We make portions of our subscriber list available to carefully screened companies that offer products and services that may be important for your work. If you do not want to receive
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Publications Mail Agreement no. 40612608.

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 International Edition
Volume 76, Number 10
October 2016

COVER: E&P activity offshore Israel

has been heating up over the past
few years, with a number of operators
looking to develop oil and gas fields in
the Eastern Mediterranean. The Noble

INSTRUCTOR - Led
Energy Tamar platform (cover photo),
offshore Israel, commenced produc-
COURSES tion in 2013, and supplies natural gas
to generate more than half of Israels
IADC WellSharp electricity. Noble Energy also says that
Drilling/Workover it is progressing workstreams neces-
sary for a final investment decision on
IADC WellCAP the Leviathan field, which is expected
Workover/Well Servicing to provide a second source of supply
for Israel while also delivering exports
IWCF Rotary Drilling to neighboring countries. (Courtesy
Noble Energy)

- Learning
COURSES
FLOWLINES & PIPELINES
IADC WellSharp Field development vessel rises to task of challenging deepwater project .............. 58
Drilling Operations The new field development and pipelay vessel Saipem FDS2 has set two world records while

IADC WellCAP
undertaking work on Petrobras Cabinas project offshore Brazil. The project involved instal-
lation of a 380-km (236-mi), 24-in. gas export pipeline in water depths that ranged down to
Workover/Well Servicing 2,250 m (7,381 ft).

IWCF Drilling Level 2 EQUIPMENT & ENGINEERING

WCS Certified Drilling Subsea electrification enabling deeper and longer step-outs ................................. 62
Hostile subsea conditions pushing boundaries of HP/HT valves.............................. 63
WCS Basic Rig Math
Deep Down announces new station-keeping system ............................................... 64
AssetWise APM offers enhanced integrity and reliability solutions......................... 64
Corrosion inhibitor enhances integrity of platform caisson legs ............................. 65
Zinc-rich epoxy coating offers corrosion protection alternative.............................. 65
Integrated riser monitoring system enhances multi-well fatigue life planning ...... 66

D E P A R T M E N T S

Online .................................................... 6 Vessels, Rigs, & Surface Systems ...... 20

FOLLOW US
Comment ............................................... 8 Drilling & Production .......................... 22
TM Data ..................................................... 10 Geosciences ........................................ 24
Global E&P .......................................... 12 Business Briefs ................................... 68
+1.713.849.7400 Offshore Europe .................................. 16 Advertisers Index............................... 71
www.wellcontrol.com Gulf of Mexico ..................................... 18 Beyond the Horizon ............................ 72
Subsea Systems ................................. 19

4 Offshore October 2016 www.offshore-mag.com

1610off_4 4 10/5/16 1:51 PM

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 VICE PRESIDENT and
GROUP PUBLISHING DIRECTOR
Paul Westervelt [email protected]

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Available at
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1610off_6 6 10/5/16 1:51 PM

 PROBLEM 27
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 COMMENT David Paganie Houston

Assessing pace, timing of oil price recovery

At the time of this writing, a meeting of the OPEC members in tion in the growth of LTO production; and an accelerated decline in
Algiers, Algeria, concluded with a decision for an OPEC-14 produc- mature fields. All of these factors are expected to contribute to the
tion target ranging between 32.5 and 33.0 MMb/d, in order to ac- ongoing rebalancing.
celerate the rebalancing of the market, the organization said in an The key downside risk, the report suggests, is that OPEC Gulf
official statement. states have the capacity to add more than 4 MMb/d of incremental
The statement said that OPEC will appoint a committee to study production by 2019, potentially holding back oil prices into 2018-19.
and recommend the implementation of the production level of the Moreover, OPECs proposed cap would help to reduce the excess
member countries at the Nov. 30 meeting in Vienna, Austria. supply only if it were not offset by gains in non-OPEC output, and
Following this news, WTI gained nearly 8% in the subsequent, global stockpiles of crude oil would remain high.
two-day trading period and settled at $48.24/bbl. Over the longer term, ongoing cost suppression measures could
Indeed, market rebalancing and thus a higher oil price is front of lower average marginal costs to $65-75/bbl, MEI adds, driven by
mind of OPEC, as many of its members are losing considerable oil deepwater and LTO plays.
export revenue. OPEC members net oil export revenue is forecast On the supply side, in addition to OPEC Gulf crude production,
to fall to $337.9 billion this year, a drop of 16% from 2015 and 55% MEI sees unconventionals and offshore resources playing an im-
from 2014, according to a recent Bloomberg report citing EIA data. portant role in replacing the 34 MMb/d decline in conventional
This would be the lowest level since 2004. basins through 2030. The industry must replace 2-3 MMb/d of
OPEC crude production in August was 33.47 MMb/d, led by re- production every year to offset the declining production in mature
cord or near-record output from Kuwait, UAE, and Saudi Arabia. basins, it says.
Meanwhile, Iraq had increased its output, and Iran reached a post- Other noteworthy findings for the offshore market include steady
sanctions high. Overall OPEC supply stood 930 Mb/d above a year deepwater production growth led by the US and Brazil. The MEI
ago, according to IEA data. report also projects that some 40% of global production is expected
OPEC Gulf behavior, in particular, Iran and Saudi Arabia, is one of to come from unsanctioned projects, to offset declines in existing
four key drivers in the short term that will dictate the pace and tim- fields by 2030.
ing of an oil price recovery, McKinsey Energy Insights (MEI) finds In summary, MEI suggests that the latest market trends support
in a recent outlook report. The other drivers are GDP growth, de- a slow recovery scenario with the market balancing by mid-2017 at
cline in producing fields, and a slowdown in US light tight oil (LTO) about $60/bbl. However, a definitive implementation plan by OPEC
production. this November to curtail production likely will impact the pace and
The analytics group modeled four scenarios fast recovery, timing of an oil price recovery.
slow recovery, under-investment, and supply abundance. The latest
trends point to a slow recovery scenario, with another six months
for oversupply to disappear and another six-12 months to burn ex-
cess inventories, according to the report.
The trends that factored into the analysis include: low but stable
GDP growth at 2.8% per annum that is expected to increase oil con- To respond to articles in Offshore, or to offer articles for publication,
sumption by about 3 MMb/d between 2015 and 2019; a resump- contact the editor by email ([email protected]).

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 G L O B A L D ATA

New vessel North Sea decommissioning expenditure 2015-2040

could lead to big
decommissioning savings 7 FPS removal
Allseas recent removal of Repsols Yme Heavy transport
platform was the first job completed by 6 Onshore deconstruction
the Pioneering Spirit demonstrating that PSV
the worlds first single-lift vessel (SLV) 5 Substructure removal

Expenditure ($bn)
was back on track after a spate of recent Topside removal
delays. The vessel lifted the 13,500-metric 4 Well decommissioning
ton platform in a single piece.
The dynamically positioned twin- 3
hulled installation and decommissioning
vessel Pioneering Spirit was designed 2
in-house by Allseas and built in South
Korea by Daewoo. At 382 m (1,253 ft) long
1
and 124 m (406 ft) wide, its pipelay equip-
ment can function in shallow water up to
0
ultra-deepwater. Its tensioner capacity is
15 17 19 21 23 25 27 29 31 33 35 37 39
double that of the worlds largest pipelay 20 20 20 20 20 20 20 20 20 20 20 20 20
vessel. The bow has a 122 m (400 ft) long Source: Douglas-Westwood, North Sea Decommissioning Market Forecast 2016-2040
and 59 m (193 ft) wide slot that allows it
to float over a platform and remove the
topsides in one lift using eight sets of Worldwide offshore rig count & utilization rate (Sept 2014 August 2016)
horizontal lifting beams.
The vessels next decommissioning 1,000 100
job will be removing the topsides from Total util % Total supply Total contracted Working
the Brent platforms, some of which 900 90

Fleet utilization rate %

weigh more than 20,000 metric tons.
The North Sea Decommissioning Mar- 800 80
ket Forecast 2016-2040 estimates that
No. of rigs

SLVs could potentially lead to almost $12 700 70

billion in savings on decommissioning
costs, though this is contingent upon a 600 60
range of factors. Author Ben Wilby said:
The potential impact of utilizing SLVs is 500 50
huge This is because it will be possible
400 40
to complete offshore work in one trip, as
opposed to the time consuming reverse
300 30
installation method that pushes costs 4 14 15 15 15 15 5 15 16 16 16 16
t1 v t1
up. This will all depend on how success- ep No Ja
n ch ay Ju
ly ep No
v
Ja
n ch ay Ju
ly
S ar M S ar M
ful Allseas Pioneering Spirit SLV is. M M
Source: IHS RigPoint Notes: Rig types included are jackups, semis, and drillships.
Douglas-Westwood

Global demand for floating drilling units, by geography

Brazil, West Africa, and
Rig years Short term Medium term
North Sea key regions for 2015 2017 2020
350 Brazil
growth in floater demand
West Africa
Brazil is and will continue to be the 300 US GoM Growth CAGR
largest market for floating offshore drill- 2015- 2016-
North Sea
ing units toward 2020. The last two years 250 2016 2020
Southeast Asia
have seen a decrease in demand due to -4% 17%
reduced exploration drilling and delays 200 Other
1% 26%
in development projects from Petrobras.
This can be contributed to cash con- 150 -25% 7%
straints and the current political situa-
100 -22% -2%
tion.
West Africa contributes to the long- -20% 4%
50
term growth together with the North Sea,
and both regions will see new field devel- -34% 6%
0
opments throughout the period. 2005 2010 2015 2020
Rystad Energy Source: Rystad Energy RigCube

10 Offshore October 2016 www.offshore-mag.com

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1610off_11 11 10/5/16 1:51 PM
 GLOBAL E&P Jeremy Beckman London

North America British Foreign Office Minister Sir Alan Duncan held talks with
The West Orphan basin offshore Newfoundland and Labrador officials in Buenos Aires last month. Among the subjects discussed
could hold 25.5 Bbbl of oil and 20.6 tcf, according to French geosci- were ways of easing Argentinas restrictive measures around oil and
ence group Beicip-Franlab. This follows analysis of recent 2D and gas operations in the Falkland Islands. One initiative agreed on in-
3D surveys acquired by TGS and PGS over the provinces slope and volves allowing the islands to set up flight connections with other
deepwater areas, which led to identification of a new Lower Tertiary nearby countries, including Argentina.
play trend. Nine parcels in the area, 300 km (186 mi) northeast of
Newfoundland, will be included in C-NLOPBs forthcoming 2016 West Africa
Eastern Newfoundland Call for Bids. Lekoil hopes to produce first oil later this year from its Otakpipo
field development in a swamp location in Nigerias OML 11 lease.
PEMEX has reportedly discovered ultra-light crude in two deep- Installation and welding was in progress last month on the offshore
water prospects in the Gulf of Mexico with potential reserves of pipeline all four first-phase wells are drilled and ready for produc-
140-160 MMboe. The company also proved light crude and gas with tion.
another well on the Teca structure, 30 km (18.6 mi) from the Gulf
coast, with estimated resources of 50-60 MMboe. Pura Vida Energy is seeking partners to help appraise and devel-
op the shallow-water 141-MMbbl Loba oil field offshore Gabon. The
company aims to commission a production test, taking advantage of
currently lower oilfield service costs, followed by fuller-scale pro-
duction 12 months later.

Russia
Gazpromneft has brought onstream two more production wells
and two injectors at the Prirazlomnoye field in the Pechora Sea off
northern Russia. All were drilled by Gazprom Bureniye LLC from
the ice-resistant offshore platform, which houses all wellheads at its
base. Eventually the operator aims to have 32 wells in service.

Rosneft and Statoil have produced first oil from an extended-reach
well drilled from shore into the Lebedanskoye field in the Sea of
Okhotsk. The start-up flow rate was about 400 b/d. Rosneft plans
two more horizontal production wells on the field, ranging in length
from 5,000-7,000 m (16,404-22,966 ft).

Hansa loading pipe racks in Brazil for the FPSO P-67. (Photo courtesy
Hansa Transport)

South America
Petrobras and Statoil have agreed to work together to improve oil
recovery from mature fields in the Campos and Santos basins. They
also plan to participate jointly in future bids for exploratory areas
both offshore Brazil and elsewhere. Currently they co-operate in 10
E&P blocks in Brazil and three more overseas.
Hansa Heavy Lift has transported pipe racks and modules for
Petrobras new FPSO P-67, which will operate in a presalt region.
The cargo was loaded onto the HHL Valparaiso at Itajai and Rio for
onward transportation to Qingdao, China, where it will be connected
to the FPSOs hull.

Shell has extended MODECs operations and maintenance con- Route of the proposed TurkStream gas line through the Black Sea.
tract for the FPSO Fluminense to December 2020. This has pro- (Map courtesy Gazprom)
duced oil and gas from the Bijupir and Salema fields in the Cam-
pos basin since 2003. Currently MODEC is constructing its twelfth Turkey has issued a permit to Gazprom for construction of the
FPSO for the Brazilian sector, the Cidade de Campos dos Goytacazes offshore section of the TurkStream pipeline through the Black Sea.
MV29. It is due to be installed late next year at the Tartaruga Verde/ This will transport gas from fields onshore Russia southeastwards,
Tartaruga Mestia fields in the same basin. with all initial supplies dedicated to the Turkish market. Revival of
the previously suspended project follows the recent thaw in rela-
Uruguays government has authorized state-owned ANCAP to tions between Turkey and Russia.
work with TGS on commercializing a multi-client well data program
to support the countrys future exploration wells. TGS can provide Mediterranean Sea
access to extensive information on logs and borehole data from its Eni and OAO Novatek have ratified a concession contract covering
global database. Earlier this year Total drilled the countrys first four exploration blocks offshore Montenegro. The government provi-
deepwater exploratory well. sionally awarded the duo licenses 4118-4, 5, 9, and 10 under the coun-
trys First International Competitive Bid Round. Eni is the operator.

12 Offshore October 2016 www.offshore-mag.com

1610off_12 12 10/5/16 1:52 PM

1610off_13 13 10/5/16 1:52 PM
 GLOBAL E&P

Factory constructed the 13,150-metric ton (14,495-ton), 105-m (344-

Cypruss government received bids from eight companies for ft) tall structure which will accommodate 12 production risers, three
blocks 6, 8 and 10, south of the island under the recent third licens- export risers, and a monoethylene glycol import riser.
ing round. Applicants included ExxonMobil, Statoil, and Eni in part-
nership with Total. Middle East
Lloyds Register has started advising state oil concern Cyprus Saudi Aramco and the STAR yard have completed work on the
Hydrocarbons Co. on development and monetization of resources largest offshore tie-in platform built to date in Saudi Arabia. STAR,
from the 13 southern offshore blocks, which could hold up to 60 tcf a joint venture between Saudi Enterprises and Saipem, constructed
of gas. the Marham TP-9 deck at King Abdul Aziz Port of Dammam.
Off neighboring Israel, the government is reportedly planning to
offer 24 blocks under the countrys first offshore licensing round. Masirah Oil Exploration has secured a three-year extension to
This will focus mainly on the Levant basin and Eastern Mediterrane- March 2020 for its E&P agreement for block 50 offshore Oman.
an, close to producing fields or others approaching development, such The company plans to drill another exploration well on the conces-
as Leviathan. Water depths range from 1,500-1,800 m (4,921-5,905 ft). sion next year, following on from this years Manarah-1 well and GA
South the countrys first offshore oil discovery drilled in 2014.
Egypt too is said to have authorized five new oil and gas drilling
and exploration agreements, four of which are in gas-prone regions India
in the Mediterranean Sea. Companies involved are said to be BP, ONGC has discovered gas in Oligocene Daman sands in the Sau-
Edison, Eni, and Total. rastra region of Indias offshore Mumbai basin. This builds on two
Eni says Zohr 5x, the latest completed well on the giant Zohr struc- earlier finds in the block, and is close to GK-28/42 and other nearby
ture in the deepwater Shorouk block, intersected a 180-m (590-ft) con- Tertiary discoveries.
tinuous hydrocarbon column in the southwestern part of the field. A GE and L&T Hydrocarbon Engineering have agreed to collabo-
sixth well is planned over the remainder of this year, followed by the rate on manufacturing subsea manifolds for future deepwater pro-
start of commercial production by the end of 2017. jects in the Krishna-Godavari basin offshore eastern India. L&Ts
site in Tamil Nadu will handle fabrication.
Caspian Sea
The jacket for the Shah Deniz 2 production and risers platform Asia/Pacific
was due to be installed at the offshore location in the Azeri sector in MISC Offshore Floating Terminals has won a $230-million, 10-
94 m (308 ft) of water. The Heydar Aliyev Baku Deepwater Jackets year lease and operations contract for Chevrons FSO Benchamas

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 GLOBAL E&P

2 project in the Gulf of Thailand. MISC is also responsible for con- pany installed in the Asia/Pacific region in the 1990s for removal.
structing and installing the floating storage offshore unit, which is Chevron has produced first gas from the Bangka field project off-
due to start operating by 2Q 2018. shore East Kalimantan, Indonesia. Production is through a subsea
well connection to the West Seno FPU, which is in turn supported by
Rosneft and PetroVietnam have discovered gas/condensate at a TLP for offshore gas production.
the Wild Orchid field in block 06.1 offshore southern Vietnam. As-
suming a development follows, production could be routed via fa- Australasia
cilities serving the nearby Lan Tay platform, operated by the same ExxonMobil will assume operatorship from Gini Energy of two li-
consortium. censes in the deepwater Gulf of Papua, subject to approvals from the
Canadian company Mitra Energy is acquiring a 30% interest from Papua New Guinea government. PPLs 374 and 375 are 150 km (93
Teikoku Oil in a PSC for blocks 05-1b and 05-1c in the Nam Con Son mi) south of Port Moresby, in water depths of 1,000-2,500 m (3,281-
basin. Both are 350 km (217 mi) offshore and include the fully ap- 8,202 ft). Indigenous company Oil Search, which is also farming into
praised gas/condensate discoveries Dai Nguyet and Sao Vang, close the concessions, says numerous potential multi-tcf prospects have
to the Nam Con Son transportation pipeline. Mitra sees potential for been identified over the acreage.
a fasttrack development with the gas sold locally, partly for power
generation. Woodside Energy has agreed to acquire half of BHP Billitons
Vietnamese fabricator PTSC Offshore Services has commis- Scarborough area interests in the Carnarvon basin offshore West-
sioned Malaysian contractor Sapura Kencana to install the living ern Australia for up to $400 million. These include 25% of the WA-1-R
quarters platform jacket and piles for the offshore Su Tu Trang field. permit containing the Scarborough gas field and 50% of WA-61-R and
WA-63-R, which include the Jupiter and Thebe gas fields. Combined
CNOOC has produced first oil from the Weizhou 6-9/6-10 com- reserves are estimated at 8.7 tcf. Woodside will operate three of the
prehensive adjustment project in the Beibu Gulf in the South China permits, with ExxonMobil remaining operator of Scarborough, cur-
Sea. This involved adding a wellhead platform to facilities serving the rently the likeliest to go forward for development.
Weizhou 6-9/6-10 oilfield, in a water depth of 35 m (115 ft). At peak in
2018, the adjustment project should lift production by 3,800 b/d. Origin Energy has brought onstream the Halladale/Speculant gas
fields in the Otway basin offshore southeast Australia, via extend-
Premier Oil has commissioned GE subsidiary PT Vetco Gray In- ed-reach wells drilled from a land base, east of Warrnambool, into
donesia to assist shutdown of four subsea wells at the Anoa field. GE the offshore reservoirs, 5 km (3.1 m) from the coast. Output from the
will prepare the subsea production trees among the first the com- fields will raise production at the onshore Otway Gas Plant.

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 OFFSHORE EUROPE Jeremy Beckman London

Castberg downsizing pays off

Aker Solutions and Statoil are working to
bring down costs of the Johan Castberg pro-
ject in the Barents Sea by NOK40-50 billion
($4.8-6 billion). Statoil decided to take action
two years ago when projections for its orig-
inal development plan forecast a breakeven
price of $90/bbl, based on a scenario of a
floating production platform with an export to
a new storage terminal in northern Norway.
The company and its partners agreed to Global Maritime completes the Njord A platform disconnection and tow to shore.
scale back the scope, focusing instead on (Photo courtesy Global Maritime).
an FPSO with subsea completions. At ONS
2016 in Stavanger, Aker Solutions regional Overhaul for Njord A platform
manager Nils Olav Solheim outlined some of Statoil has awarded Kvaerner a $42.4-million contract to upgrade the Njord A
the solutions his company had devised with semisubmersible platform, which had earlier been towed from the Norwegian Sea
Statoil over the past two years to make costs to Stord, western Norway, after being disconnected from the Njord field facilities.
more manageable. Kvaerners duties will include removing the derrick, flare and lifeboat system, and
Johan Castberg comprises the Skrugard, pre-fabricating new pontoons to increase the buoyancy of the hull.
The platform had been in operation since the start of production in the late 1990s.
Havis and Drivis discoveries, 240 km (149 mi)
Statoil plans to modernize the facility to continue serving the Njord and Hyme fields
northwest of Hammerfest in a water depth of
beyond 2030, also tying in production from the 66-MMbbl Snilehorn and other unde-
around 370 m (1,214 ft). The location is north veloped prospects in the area.
of Alaska: in some ways conditions are less Snilehorn and Castberg are among 11 future Norwegian projects likely to go for-
harsh than in the Norwegian Sea to the south, ward as a result of cost reductions, according to the Norwegian Petroleum Directo-
Solheim said, although the design tempera- rate. NPD said the various operators now anticipate combined investments of $18
ture is 5C (23F) lower than in the Halten- billion, down by more than $14 billion from their previous estimates in 2014. Main fac-
banken region, so a greater degree of winteri- tors have been modified development solutions, lower rig rates, and better planning
zation measures are needed. The lifeboats are to ensure that wells are drilled more quickly and therefore at lower cost. Choosing
being designed to protect against atmospheric different subsea export routes has also brought down pipeline prices, NPD added.
icing, and infra-red heating is an option to pro-
tect the release mechanism. The helideck too cost-effective solution for the basic needs of be Norways most northerly well to date and
will be supplied with water-borne heat if icing receiving incoming hydrocarbons and inject- a true wildcat, Averty claimed. The main
prevents landings. ing gas and water to drive out oil from the drilling issue will likely be the shallow depths
The scaled-back FPSO is now 295 m (968 reservoirs. All produced water and a certain of the reservoirs, he added.
ft) long and comprises a 57,000-metric ton amount of seawater will be needed to sustain
(62,832-ton) hull and living quarters sup- production levels. One benefit of keeping Geologists tackle
porting an 18,000-metric ton (19,841-ton) equipment needs to an absolute minimum is Faroese volcanics
topsides. All aspects of the structure and that the deck will have ample free space, Sol- Jarfeingi, the Faroese Geological Survey,
the processes used onboard have been re- heim added, allowing for installation of extra has been re-examining large volumes of data
viewed, with certain items of equipment re- modules for any future field tie-ins. from previous exploration activity offshore
moved if deemed not entirely necessary. For Pre-front-end engineering and design the islands ahead of the launch of the 4th Far-
instance, Statoils initial plan had been for (FEED) is due to be completed this month. oese licensing round next May. Only nine
three-stage separation, but the review pro- Aker Solutions has options under its contract wells have been drilled to date, including
cess determined that one stage could be tak- to also bid for the subsequent full FEED and Enis Anne Marie gas discovery. One of the
en out. We also decided to remove the orig- detailed design studies. If all goes to plan, main deterrents has been the complex vol-
inally planned multiphase meters, Solheim Castberg could come onstream during 2022. canics that extend across the Faroese shelf,
said, realizing that we could manage with which have hindered imaging of potential
a test separator. The living quarters and Statoil widens hunt underlying reservoirs. These were formed
cabins have been re-sized to reflect the fact in Barents Sea when the Faroe area was a conjugate part of
that peak manning around 40 people will Statoil will target different frontier plays east Greenland. Other petroleum provinces
only be needed for a two-three week mainte- away from the Castberg area in its next wave such as Angola and Brazil also have volcan-
nance period every three or four years. of Barents Sea wells, said head of exploration ics, but the layers are far less thick, making
The 7,000-metric ton (7,716-ton) turret is Jez Averty during another ONS briefing. The it difficult to draw meaningful analogies.
located more forward than on other FPSOs company plans to drill 17 exploratory wells However, modern processing techniques
to ensure weathervaning in the event of a offshore Norway between now and the end of applied to the extensive Faroese offshore
power loss onboard, Solheim explained, so next year, he said, including seven in the far 2D and 3D datasets are gradually improving
that the vessel is always lined up in the same north. Of these five will likely be on prospects the picture, said Jarfeingi geologist Jana
direction as the wind. This also ensures that in previously undrilled frontier plays. Even if Olavsdttir during ONS, and results will
any gas leak is vented in a safe direction. one of the wells provides a major discovery, be announced in the run-up to next years
Statoil has re-designed the wells and subsea the company will stick to its schedule, return- round. Now we see the base of the volcan-
facilities, he added, with fewer templates and ing to appraise at a later date. Higher-risk ics and the pre-rift, although there are no tie
flowlines and a lower number of risers con- targets include the Koigen Central structure points, she added. But we cant establish
necting to the turret part of the turret has on the Stappen High, and Korpfjell on the these until more wells are drilled through
also been slimmed down to achieve a more recently awarded P1859 license, which will the volcanic sequence.

16 Offshore October 2016 www.offshore-mag.com

1610off_16 16 10/5/16 1:52 PM

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 GULF OF MEXICO Bruce Beaubouef Houston

BOEM to offer 47 million

acres in Lease Sale 247 Shell Midstream increases its pipeline capacity
The Bureau of Ocean Energy Management Shell Midstream Partners,
(BOEM) has announced that it will offer ap- L.P., says it has agreed to
proximately 47 million acres offshore Louisi- acquire from Shell an additional
ana, Mississippi, and Alabama for oil and gas 20% equity interest in Mars
Oil Pipeline Co. (Mars) and a
exploration and development in a lease sale
49% equity interest in Odyssey
that will include all available unleased areas
Pipeline L.L.C. (Odyssey) for
in the Central Planning Area (CPA) of the $350 million.
Gulf of Mexico. This acquisition further
Proposed Central Gulf of Mexico Lease diversifies the Shell Midstream
Sale 247, scheduled to take place in New Or- Partners portfolio with the
leans in March 2017, will be the twelfth off- inclusion of a well-positioned
shore sale under the Administrations Outer eastern Gulf of Mexico asset,
Continental Shelf Oil and Gas Leasing Pro- said John Hollowell, CEO of
gram for 2012-2017 (Five Year Program). Shell Midstream Partners.In
Lease Sale 247 will include approximately addition, the partnership ac-
8,878 blocks, located from three to about quired an additional interest in
Shell Midstream Partners, L.P., says it will enhance its GoM
230 miles offshore, in water depths ranging an existing asset with a strong
pipeline capacity with interests in the Mars Oil Pipeline and
from nine to more than 11,115 ft (3 to 3,400 track record of delivery. Both
the Odyssey Pipeline. (Courtesy Shell Midstream Partners, L.P.)
m). The BOEM says that the sale will build Mars and Odyssey build on our
on 11 sales, already held in the current Five key corridor pipeline strategy in
Year Program, that have netted more than the Gulf of Mexico and are advantageously positioned to continue to capture growth
$3 billion to date. of offshore volumes along our footprint of assets.
The proposed terms of the sale include Mars and Odyssey highlights include:
Mars delivers crude from the prolific Mars basin and the Amberjack system, offer-
conditions to ensure both orderly resource
ing 600,000 b/d of capacity into LOOPs Clovelly facility
development and protection of the human,
Odyssey has 220,000 b/d of capacity from the eastern Gulf of Mexico to the Delta
marine and coastal environments. These in- pipeline system, enabling deliveries to refineries in Louisiana and Mississippi.
clude stipulations to protect biologically sen- The acquisition was expected to close on Oct. 3, 2016.
sitive resources, mitigate potential adverse
effects on protected species and avoid poten-
tial conflicts associated with oil and gas de- completed third-party production handling tered into the offshore oil and gas market in
velopment in the region. BOEM says that its agreement for the Marlin platform. Anadarko December 2012 when it announced a merg-
proposed economic terms include a range of will also assume future abandonment obliga- er agreement withPlains Exploration & Pro-
incentives to encourage diligent development tions associated with the properties. FM O&G duction Co. and McMoran Exploration Co.
and ensure a fair return to taxpayers. parent company Freeport McMoRan Inc. In May 2014, it acquired for $1.4 billion
The BOEM also said that the terms and (FCX) says the properties had a book value of certain interests fromApache Corp.s deep-
conditions outlined for Sale 247 in the Pro- approximately $0.5 billion at June 30. water Gulf of Mexico portfolio, including
posed Notice of Sale are not final. Different Under the terms of the transaction, Anadar- Apaches interests in the Anadarko-operated
terms and conditions may be employed in ko will increase its working interest in Lu- Lucius and Heidelberg oil production devel-
the Final Notice of Sale, which will be pub- cius to approximately 49% from its previous opments and 11 exploration leases.
lished at least 30 days before the sale. 23.8% ownership. In late 2015, suffering from the depressed
All terms and conditions for Central Sale The transaction has an effective date of oil price environment still plaguing the in-
247 are detailed in the Proposed Notice of Aug. 1, and is expected to close in 4Q, sub- dustry, FCX cut its board of directors and
Sale information package, which is available ject to customary closing conditions. announced it was reviewing alternatives for
at: http://www.boem.gov/Sale-247/. Copies Richard C. Adkerson, president and CEO, its oil and gas business. Reports began to
of the PNOS maps can be requested from said: We are pleased to announce this trans- surface at the end of last year that the min-
the Gulf of Mexico Regions Public Informa- action, which brings our total 2016 asset sale ing conglomerate would exit the oil and gas
tion Unit at 1201 Elmwood Park Boulevard, transactions to over $6 billion and reflects market altogether.
New Orleans, LA 70123, or at 800-200-GULF our commitment to debt reduction and our Then, in April 2016, amidst a clearing of
(4853). focus on dedicating our capital and manage- the companys executive team, FCXs then-
ment resources to our global leading copper standalone FM O&G was restructured as an
Anadarko to acquire business. operating division. In June, the companyset-
Freeport-McMoRans With our announced asset sale transac- tled with Noble Corp. plc for a full settle-
deepwater assets tions, combined with cash flows from opera- ment value of $540 million stemming from
Anadarko Petroleum Corp. has agreed tions, and previously announced at-the-mar- terminating the contracts of the Noble Sam
to purchase Freeport-McMoRan Oil & Gas ket equity transactions, we are on track to CroftandNoble Tom Maddendrillships.
(FM O&G)deepwater Gulf of Mexicoprop- achieve our stated balance sheet objectives. For the 12-month period ended June 30,
erties for a total cash consideration of $2 In FCXs 2015 annual review, it revealed 2016, net daily sales volumes from FM O&Gs
billion and up to $150 million in contingent it had $20.4 billion in total debt and said it deepwater GoM properties averaged around
payments. would be making moves to accelerate its 73,000 boe. Over this period, revenues to-
The contingent payments would be received previously announced debt reduction plans. taled $1 billion, cash production costs (before
over time as Anadarko realizes future cash FCXs foray into the deepwater market G&A) totaled $0.3 billion and capex totaled
flows in connection with FM O&Gs recently has been troubled. The company initially en- $1.6 billion.

18 Offshore October 2016 www.offshore-mag.com

1610off_18 18 10/5/16 1:52 PM

 Sarah Parker Musarra Houston SUBSEA SYSTEMS

and services for its Norwegian field developments and another to

Subsea 7 for SURF services.
Potentially, the contracts would be worth NOK 2.8 billion ($340
million) combined, although the values may change depending on
how much work Det norske calls for under the contracts.
A steering committee comprising senior executives from each
company will comprise overall management of the alliance, with the
project management team led by a manager from Det norske.
Earlier this year, Aker Solutions secured a framework agreement
from Lundin Norway to provide engineering services for offshore
Norway developments. Subsea 7 has acquired Swagelining, a sub-
sea polymer lining technologist after cooperating for some time,
designing and installing more than 150 km (93 mi) of reeled and
bundled polyethylene lined water injection flowlines in the North
Sea for various operators and field developments.
Det norskes newly formed alliance with Aker Solutions and Subsea 7 is BSEE: Bolt, connector failures a high priority
said to enable the operator and suppliers to collaborate in finding the
A group of approximately 70 individuals from the offshore oil and gas
most cost-effective solutions for developing Det norskes Norwegian
subsea field portfolio. Shown here is a subsea system rendering of one
industry, government, academia, and environmental organizations re-
of the companys Norwegian assets, Ivar Aasen. Topsides were installed cently gathered in Washington to discuss the reliability of bolts, connec-
this summer, with first production expected by the end of the year. (Image tors, and other fastener systems used in critical safety equipment for oil
courtesy Det norske oljeselskap) and gas operations. The half-day forum included welcoming comments
by Bureau of Safety and Environmental Enforcement (BSEE) Director
Aker Solutions, Det norske, Subsea 7 Brian Salerno, opening remarks by Interior Department Assistant Sec-
form Norwegian alliance retary Janice Schneider, and a keynote address by National Academy of
Aker Solutions, Det norske oljeselskap, and Subsea 7 agreed to a Sciences President Dr. Marcia McNutt.
collaboration model that will target how an operator and its suppliers There is urgency with this issue due to recognition of a system-
can work together on oil and gas developments offshore Norway. atic problem, Salerno told the audience, and the potential for a cata-
The alliance combines Det norskes exploration and production strophic event. We need to determine the breadth and scope of the
know-how with Aker Solutions expertise in front-end engineering, issue as well as the root causes of the problem in order to respond
brownfield modifications, and subsea systems, and Subsea 7s capa- appropriately. We are in this together with (the American Petroleum
bilities in the engineering, procurement, installation, and commis- Institute) and the standards setting organizations, as well as industry
sioning of subsea umbilicals, risers, and flowlines (SURF). and BSEEs interagency partners.
The alliance is said to enable the operator and suppliers to work as an Salerno cited two specific events that highlight the risk that fail-
integrated team to find the most cost-effective solutions for developing ing bolts can pose to industry personnel and the environment. One
Det norskes Norwegian subsea field portfolio. Det norske points out was the failure of 20 bolts during a 2010 blowout preventer (BOP)
that field developments have typically been managed on a project-by- test aboard a semisubmersible in the Gulf of Mexico.
project basis that curtails reuse of technology and solutions. This was a shipboard test, Salerno reminded the audience, so
Our industry needs to find new, more sustainable ways of work- there were no consequences other than the alarm bells it sounded.
ing on oil and gas developments, said Karl Johnny Hersvik, CEO of Nine of the studs on the BOP had stripped threads and 11 were
Det norske. This alliance enables a holistic approach to our subsea fractured.
developments that will promote an effective reuse of solutions and The second incident occurred in 2012 during a drilling operation
best practices across the portfolio to significantly save time and re- in the Gulf of Mexico. In this example, the lower marine riser pack-
duce costs. age became separated from the BOP stack, resulting in a spill of
The companies will form an integrated project management team over 400 barrels of synthetic-based drilling fluids. Again, connector
with experts from each. This will enable continuity from one field bolts failed. BSEE believes a number of factors led to stress frac-
development to another and facilitate a reuse of solutions and tech- tures that resulted in the bolt failures.
nology that will lower costs, reduce development time, and promote Two panels of experts followed the opening remarks. The first
safe and more efficient work methods amid a focus on continuous panel discussed BSEEs response to specific connector failure inci-
improvement. All parties share both risks and rewards. dents and what research has been undertaken to date. The second
We see this as a new and exciting way of working together as panel was more broadly focused, describing efforts by the offshore
operator and suppliers with many potential benefits, not only for us industry to address bolt failures as well as a discussion of similar
individually as companies but also for the entire industry as we find issues faced by the aerospace and nuclear industries.
more effective collaboration methods, said Luis Araujo, CEO of Given the serious nature of the failures and the potential harm
Aker Solutions. such failures can cause, BSEE has identified bolt and connector fail-
Det norske agreed to merge with BP Norge in June, creating Nor- ures as a high priority. Steps already taken by the bureau include
ways leading offshore E&P independent. The combined company work with original equipment manufacturers, a BSEE Safety Alert,
will be named Aker BP and will be headquartered in Fornebupor- a quality control study, and a call to industry to develop better stan-
ten, Norway, with Aker ASA and BP as main industrial sharehold- dards and practices and to be proactive in remedying the defects
ers. It will operate production centers at Alvheim, Hod, Ivar Aasen, seen in bolt failures.
Skarv, Tambar, Ula and Valhall in the North Sea, and will also be a Salerno said that while in certain cases proximal reasons for the
partner in the Johan Sverdrup development. failures are known, the regulator needed to dive deeper into the is-
In the same month, Det norske awarded Aker Solutions a four- sue. He called the forum an important step forward in the efforts to
year framework agreement to provide subsea production systems solve the bolt problem.

www.offshore-mag.com October 2016 Offshore 19

1610off_19 19 10/5/16 1:52 PM

 VESSELS, RIGS, & SURFACE SYSTEMS Jessica Tippee Houston

ity and operational efficiency. It is one of GEs largest ever service

agreement for FPSOs.
The FPSOs are owned by consortiums headed by MODEC,
which also provides operation and maintenance services for the
vessels. GEs base in Petropolis can undertake repair work onshore
where necessary to reduce turnaround time.
There is a growing trend, the company adds, for long-term con-
tractual service agreements for FPSOs as opposed to managing
maintenance on a single event basis. Use of digital solutions, the
company claims, will allow MODEC to maximize operation efficien-
cy and production output as well as reducing manpower require-
ments offshore.

Exmar FLNG vessel passes

performance test in China
Wison Offshore & Marine has completed the performance test of
the worlds first barge-based floating liquefied natural gas (FLNG)
unit at its yard in Nantong, China. This marks for the first time LNG
Measuring 382-m (1,254-ft) long and 124-m (407-ft) wide, the Pioneering has been produced onboard a floating facility.
Spirit will have a topsides lift capacity of 48,000 tons and a jacket lift The performance test of the Caribbean FLNG vessel was carried
capacity of 25,000 tons. (Photo courtesy Allseas) out in the presence of classification societies, Exmar, and all the
relevant parties. During the 72-hour test, the vessels performance
Pioneering Spirit completes first project ensured all key design requirements and production capacities were
In late August, Allseas dynamically positioned single-lift installa- achieved for the units operational effectiveness.
tion/decommissioning and pipelay vessel Pioneering Spirit success- The Caribbean FLNG project is being delivered by Wison under
fully removed the 13,500-ton Yme MOPU in the North Sea, 100 km an engineering, procurement, construction, installation, and com-
(62 mi) offshore Norway for Repsol Norge AS. missioning contract with Exmar.
The Yme MOPU is a jackup type platform standing on three steel
legs of 3.5 m (11 ft) diameter, which are inserted approximately 10
m (33 ft) inside the subsea storage tank columns at 93 m (305 ft)
water depth. With this platform removal, Allseas says it was able to
demonstrate the unique single-lift capabilities of the vessel. With the
platform sea-fastened on board, the vessel then headed to the newly
developed dismantling yard in Lutelandet, Norway.
The vessel is expected to return to Rotterdam where the remain-
ing four topsides lifting beams will be installed for the Shell Brent
Delta topsides removal, scheduled for the summer of 2017.

GustoMSC introduces harsh

environment semisubmersible series
GustoMSC has launched a new harsh environment drilling
semisubmersible series: the OCEAN-HE. The OCEAN850-HE and
OCEAN1600-HE form the basis for respectively the mid water and
The barge-based FLNG unit is 144-m (472-ft) long, 32-m (105-ft) wide
deepwater harsh environment regions of operations. The semisub- and 20-m (66-ft) deep, with an operating draft of 5.4 m (18 ft) and an LNG
mersible hull shape is especially designed for low motion character- storage capacity of 16,100 cu m (568,566 cf). (Photo courtesy Wison
istics and optimum station keeping capabilities. Offshore & Marine)
The OCEAN1600-HE is the largest drilling semi design by Gus-
toMSC to date. With a maximum displacement of approximately Both the gas trial and performance test were completed at the
70,000 tons, a large derrick, DP-3 and a 16-point mooring system companys Nantong yard. This is the worlds first gas trial for a float-
for station keeping, it is designed to cope with the North Atlantic ing liquefaction unit before sail-out. All systems on the FLNG unit
environmental conditions. were commissioned and tested without leaving the shipyard by us-
The OCEAN850-HE is a moored-only harsh environment semi- ing LNG to supply gas without connection to a pipeline. Conduct-
submersible of approximately 50,000 tons displacement with a water ing gas trials and performance testing in the shipyard, Wison says,
depth rating of 1,000 m (3,280 ft), and a sixth-generation efficient shortened the time required for project completion.
single derrick combined with horizontal riser storage. An Wenxin, senior vice president of Wison Offshore & Marine,
said: Floating LNG production, storage, and transportation facilities
GE, MODEC sign Brazil are emerging markets with large potential. The small-scale FLNG
FPSO turbine service deal being delivered by Wison has design advantages with low-cost and
GE Oil & Gas has signed an agreement with MODEC covering compact features, providing the market with more economical and
the supply and service of gas turbines for FPSOs in Brazil. MODEC efficient solutions.
ordered GE gas turbines for eight FPSOs based in Brazil and signed In March, Exmar NV and Pacific Exploration and Production
a 25-year maintenance contract for gas turbines on six FPSOs. The agreed to terminate a liquefaction and storage agreement associated
agreement includes provision of data analytics for advanced moni- with the Caribbean FLNG. The vessel was slated to be moored in the
toring and diagnostics, helping to improve equipment availabil- La Creciente gas field offshore Colombia.

20 Offshore October 2016 www.offshore-mag.com

1610off_20 20 10/5/16 1:52 PM

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 DRILLING & PRODUCTION Bruce Beaubouef Houston

Year-over-year comparison by rig type

Rig market with the forward two-year coverage of 32% for floaters and 20% for
remains depressed jackups from this time last year. Within the analyst groups coverage
The offshore drilling market remains depressed according to universe, Ensco plc is the only company to increase its 2018 cover-
the latest Global Offshore Rig Market Snapshot offered by Ever- age over the past 30 days. While the companys forward two-year
core ISIs Oilfield Services, Equipment & Drilling group. The report coverage is similarly lower than the level of one year ago,
covers early contract terminations, rig additions and attritions, and Enscos 21% floater coverage for 2018 is only 280 bps lower than
year-over-year contract coverage. its 2017 coverage of 24% at this time last year. In contrast, the indus-
A total of eight contracts seven new mutuals and one mutual trys forward two-year floater coverage is down 690 bps.
sublet have been announced so far in September, slightly below Atwood, Transocean, and Vantage are the only companies to have
pace of 10 at this point in August, the analyst group found. a higher year-over-year forward two-year floater coverage, with At-
Contracting decelerated in the back half of last month with a total woods and Transoceans coverage incorporating one and six float-
of 18 contracts signed, well below the August totals of the prior three ers scrapped over the past 12 months, respectively. On the jackup
years, which Evercore placed at 36, 32, and 48. side, Seadrill and Vantage are the only companies to have a higher
Three August jackup contracts were for terms of a year or more. year-over-year forward two-year coverage versus the industrys av-
Vantage Drilling Internationals Emerald Driller will be heading to erage of -270 bps.
Qatar for Total while Seadrills West Castor and China Oilfield Servic-
es Ltd.s COSLHunter will operate in Mexico for independent E&Ps. DW report sees bright spots
September brought additional activity into the Middle East and Meanwhile, Douglas-Westwoods (DW) latest World Drilling and
Mexico. Diamond Offshores Ocean Scepter is headed to Mexico for Production (DWD&P) Market Forecast finds that while oversupply
Fieldwood Energy. Abu Qir Petroleum and Petrobel contracted El is likely to increase again in 2017, there are several areas that will
Qaher I and El Qaher II from Egyptian Drilling to work in Egypt. have stable activity in the medium term.
Saudi Aramco contracted Senusret from Egyptian Drilling and EN- Continued outages in Nigeria, a rumored OPEC production freeze
SCO 84 from Ensco to work in Saudi Arabia. Both of the Saudi Ar- as well as output reductions onshore US, due to bankruptcies and cap-
amco contracts were for periods lasting more than 1,000 days. ital expenditure cuts amongst shale producers, have helped oil prices
Since the last report, on the floater side, two contracts were for rally from record lows. As such, DW anticipates the first decline in on-
terms of a year or more, with both Transoceans Sedco 712 and Dia- shore oil production since 2009. The oversupply is likely to increase
mond Offshores Ocean Valiant secured for UK P&A work. The UK once more in 2017 with a recovery in Nigerian production as well as
accounts for two of the eight September contracts thus far, Evercore large output additions from both OPEC and non-OPEC sources.
continued, with both harsh high-spec jackups working for indepen- However, DW has identified several areas with stable activity in
dent E&Ps, including the Maersk Gallant (also for P&A work). the medium term. In Russia, demands for supply agreements with
Separately, Cairn Energy noted earlier this week it expects to ten- China and new LNG projects will lead to growth in gas-targeted drill-
der a 7th-generation drillship later this year for less than $200,000/d ing, offsetting decreases in oil-related activity. Western Europe will
for a two-well (plus options) drilling program off Senegal. see offshore development drilling levels maintained due to a num-
Utilization continues to trend lower for rigs rolling off contract, ber of developments sanctioned before the oil price crash.
while early contract terminations reaccelerated. Evercore said that Unsurprisingly, the Middle East will see strong drilling growth,
the contracted global floater fleet fell by five units, or 3.2%, while the both onshore and offshore, as the regions OPEC members contin-
contracted jackup fleet fell by 10 units or 3.3%. Average day rates ue with their strategy of defending market share. This will lead to
were flat for both floaters and jackups at around $410,000/d and over 21,000 development wells drilled over 2016-2022, up 28% on the
$130,000/d, respectively. preceding seven-year period.
Contractors continued to cold-stack additional floaters, the ana- The production gains in Western Europe are just one example
lyst group found, citing a recent IHS report that ENSCO 8506 and of an offshore region increasing production in the medium term as
Ocean Rig Mylos will be next to be cold-stacked. The cold-stacked a result of the positive effects of the last upcycle. Over 2016-2018,
floater count has increased by 30 thus far to 65 since the start of combined offshore oil and gas output will increase in all eight of
the year. the regions covered in DWD&P as a result of developments sanc-
Evercore found that contract coverage for 2018 has slipped by 30 tioned in the boom years of 2011-2014. DW cautions, however, that
basis points (bps) to 26% for the global floater fleet but improved by this poses a significant threat to oil price recovery over the next few
40 bps to 18% for the global jackup fleet. This compares unfavorably years.

22 Offshore October 2016 www.offshore-mag.com

1610off_22 22 10/5/16 1:53 PM

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 GEOSCIENCES Sarah Parker Musarra Houston

Schlumberger WesternGeco
grabs GoM wins
Schlumberger WesternGeco recently se-
cured two big wins in the Gulf of Mexico.
The news follows Augusts announcement
that Schlumberger and TGS had started the
full-azimuth multi-client Revolution XII and
XIII surveys, covering about 7,150 sq km
(2,761 sq mi) in the Green Canyon, Atwater
Valley, and Ewing Bank protraction areas of
the central Gulf of Mexico.
Schlumberger and ION Geophysical Corp.
announced a new 3D multi-client reimaging
broadband program offshore Mexico, which
uses the countrys National Hydrocarbons
Commission data library.
The Campeche 3D reimaging program com-
prises three survey areas covering approxi-
mately 82,000 sq km (31,660 sq mi) in the Bay
of Campeche offshore southern Mexico.
The program will be processed using a
combination of custom technologies and tech-
WesternGeco and ION expand the Campeche multi-client reimaging program to cover the shallow-
niques from both organizations with the aim of
water Round 2.1 blocks. This is one of multiple major Gulf of Mexico operations announced by
informing for upcoming licensing rounds. Schlumberger in recent months. (Image courtesy Schlumberger)
Schlumberger WesternGeco says that the
complexity and variability of the geological ar- The WesternGeco Campeche WAZ deep- in the northeast Zambezi Depression. The
eas being surveyed require a set of consistent, water multi-client seismic survey is located Zambezi Delta exhibits complex structura-
advanced workflows to maximize bandwidth, in the southern Gulf of Mexico. More than tion following extensive recent compressional
while producing data with strong, low-frequen- 80,000 sq km (30,888 sq mi) of newly imaged tectonics. Several potential source, reservoir,
cy content for subsalt areas and high-resolu- subsurface data, which has been acquired and seal intervals have already been identi-
tion data for non-salt areas of the basin. in the last 12 months, is available for oil and fied in this area. Play types include onlaps and
The use of broadband preprocessing cou- gas companies participating in exploration drapes over basement highs, stratigraphic and
pled with high-resolution steep dip reverse in Mexico. The project follows the Mexican structural traps of deepwater slope channel
time migration and Kirchhoff imaging algo- governments opening of licensing rounds to and basin floor fan complexes, lowstand plays
rithms will produce data for prospect identi- non-government companies for the first time. (both wedge and pro-delta fan), syn-rift graben
fication and exploration. hanging wall and footwall plays, and strike slip
The program is fully supported by industry September proves structural plays.
funding. Fasttrack data is available now for big for Spectrum New 2D data will play a role in understand-
Round 1.4 deepwater bid preparation decisions. With only one day between announcements, ing the hydrocarbon potential of the area and
In addition, Schlumberger and Petronas Spectrum Geo proposed a survey offshore accelerate exploration activity in what is be-
(E&P) Overseas Ventures have signed an Africa and then began acquisition work in the lieved to be an oil-dominated region offshore
agreement to license a significant part of western Barents Sea. Mozambique, Spectrum says.
the WesternGeco Campeche wide-azimuth The company was awarded Tender Area 2, On partnership with BGP, Spectrum has
(WAZ) deepwater multi-client seismic survey which covers the southern Rovuma and north- also begun acquisition of a 1,800-sq km (695-
in the southern Gulf of Mexico. eastern Zambezi basins offshore Mozambique. sq mi) multi-client 3D seismic survey off-
Petronas is looking for high-quality global It proposed to undertake a comprehensive shore Norway in the western Barents Sea.
growth opportunities and we plan to use the long-offset broadband 2D multi-client seismic The new survey, designed based on interest
best available technology to focus our search survey with a variable grid with lines spaced from industry, will tie and complement Spec-
for these opportunities, said Emeliana Rice- from 10 to 20 km (6 to 12 mi), totaling in excess trums existing 3D surveys in the area. When
Oxley, vice president of Exploration, Petronas. of 16,000 km (9,942 mi). completed, the combined coverage will total
The WAZ seismic will help unravel the hydro- The new seismic data will image the sub- about 20,000 sq km (7,722 sq mi) over pro-
carbon potential in the complex and under ex- surface potential in open areas of the south- spective and potential 24th Norwegian licens-
plored Mexican deepwater basins. This agree- ern Rovuma basin and the western flanks ing round in 2017.
ment is a step towards achieving our growth of the Kerimbas Graben, west of the Davie Data is being acquired with 10-by-8,000-m
strategy and demonstrates our long-term com- Fracture Zone, revealing the prospectivity in (33-by-26,246 ft) streamer offsets to record data
mitment to exploration in Mexico. This will this region for what Spectrum says will be necessary to understand the basins architec-
enable Petronas growth efforts in high grad- the first time. ture and to better image the prospective zones
ing selective new investments to strategically Potential targets along the Mozambique within the Palaeocene-Eocene and Jurassic-Cre-
position ourselves and grow in the region, in margin have already been identified in both taceous as well as the Late Cretaceous marine
support of Mexicos energy reform. In addi- structural and stratigraphic settings. These in- sands. The data will be processed by Spectrum
tion to the Gulf of Mexico, Petronas also has clude Cretaceous and Tertiary turbidites and and a broadband fasttrack volume will be avail-
a sizeable library of multi-client seismic data buried canyon plays. The survey will also aim able in 1Q 2017. The final PreSTM broadband
covering the southern Atlantic Margin, which to image the syn-rift structures and Late Cre- dataset and offset volumes will be available in
is also part of our exploration focus area. taceous pro-delta stacked turbidite sequences 2Q 2017, ahead of the licensing round.

24 Offshore October 2016 www.offshore-mag.com

1610off_24 24 10/5/16 1:53 PM

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1610off_25 25 10/5/16 1:53 PM

 EASTERN MEDITERRANEAN

New regulatory framework should

advance Israeli projects
Investment measures could spur export pipelines

A
fter years of deliberations, nego- Shiri Shaham which would on the one hand enable devel-
tiations and amendments, the Israeli Simon Weintraub opment of Israeli gas reservoirs, while on the
government recently adopted its final Yigal Arnon & Co. other addressing the governments concerns
framework for regulation of the coun- over a monopolistic position. This process
trys burgeoning natural gas sector. took place throughout 2015 and involved pub-
Israel has historically been a natural re- lic and parliamentary hearings. Finally, last
source-poor country; however, over the last and is close to starting development. Tanin December the Israeli government approved
seven years, several major offshore natural and Karish are much smaller fields, both the Natural Gas Framework, which consti-
gas reservoirs have been discovered in the still to be developed. tutes a comprehensive regulation of this issue.
countrys Exclusive Economic Zone (EEZ). In December 2014, Israels then Antitrust Its main principles are:
The four largest natural gas fields are Commissioner decided to break up the dom- Mandatory sale. Noble and Delek must
largely owned by Noble Energy and the inant position held by Noble and Delek by sell all their rights in the small fields Tanin
Delek Group, as offshore exploration by cancelling a previously proposed arrange- and Karish within a specified 14-month time-
other right holders has mostly proven un- ment that would have allowed the parties frame. Delek Group must sell all of its rights in
successful. As of June 2016, Delek and No- to retain their respective stakes in Levia- Tamar while Noble Energy must sell at least
ble together controlled 85% of the Leviathan than and Tamar on the condition that they 11% of its rights (limiting its maximum hold-
field, 67.25% of the Tamar field, and 100% of sell their shares in Tanin and Karish. The ings in Tamar to 25%) by December 2021. The
both the Karish and Tanin fields. decision, however, resulted in the partners buyers must be unrelated third parties, to be
The Tamar field, estimated to contain calling an immediate halt to development of approved by the Petroleum Commissioner in
10 tcf of gas, was discovered in 2009 and Leviathan and triggered an intense delibera- consultation with the Antitrust Commissioner.
started production in April 2013. It now gen- tion process by the Israeli government, in- Development and purchase commitments.
erates more than half of Israels domestic volving negotiations with Noble and Delek. The Leviathan leaseholders must purchase
electricity production. The Leviathan field The aim of these discussions was to achieve at least $1.5 billion in services and equip-
(estimated at 22 tcf) was discovered in 2010 a comprehensive, long-term arrangement ment for the Leviathan fields development

The Israeli governments recent ruling allows local high-profile partners Noble Energy and Delek Group to retain their stakes in the Tamar and Leviathan
fields if other conditions are met. (Image courtesy Noble Energy)

26 Offshore October 2016 www.offshore-mag.com

1610off_26 26 10/5/16 1:53 PM

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 EASTERN MEDITERRANEAN

by the end of 2017 and the Tamar and Levia- ing trade agreements with neighboring east-
than leaseholders must invest at least $500 ern Mediterranean countries. Such trade
million over eight years in pertinent Israeli agreements can hopefully serve to foster
goods and services, R&D, personnel and geopolitical stability in the region. By way
professional training. of example, the Leviathan partners and BG
Protections to customers. The Antitrust Com- Group (now part of Shell) were reportedly
missioner made his approval conditional on a negotiating a $30-billion deal to supply 105
series of nine long-term agreements for the bcm of gas over 15 years to BGs liquefac-
sale of gas from Tamar upon the granting of a tion facility in Idku, northern Egypt. It has
two-year window of opportunity (likely dur- also been reported that Israel and Turkey
ing 2020-22) in which customers can reduce are closer to a gas deal, which may include
the quantities they have committed under cur- a potential pipeline through Turkey. While
rent take or pay purchase agreements by up relations between the two states have been
to 50%. In addition, with respect to these long- shaky of late, a trade agreement would ad-
term agreements as well as nine additional vance a rapprochement.
short-term agreements, customers will be Additionally, in February, the Tamar part-
permitted to re-sell 15% of their contractually ners reportedly signed a letter of intent with
purchased quantity in secondary sales without Heerema Marine Contractors Thialf deepwater private customers in Jordan to supply 1.8
pricing restrictions. Future purchasers will en- construction vessel is shown here at work bcm over 10 years, while in April, the Pales-
joy additional protections relating to pricing. on the Tamar platforms topsides prior to first tinian Investment Fund reportedly received
Export and tax. The Framework reinstates, production, achieved in March 2013. (Photo a provisional permit and would soon pub-
courtesy Delek Group)
with some modifications, a former govern- lish tenders for constructing a $600-million
ment resolution regarding export restric- it no longer guarantees nor does it mandate power station to be supplied with natural gas
tions which determines that a certain prede- that the government will abstain from and op- from the Leviathan field. The power station
termined quantity of gas should be reserved pose the enactment of any material changes. is intended to provide 450 MW of electricity
for the local market. It also clarifies various Rather, the new clause provides that the gov- to West Bank residents.
points relating to the special taxation regime ernment will carefully consider future regu- The Framework is already spawning a
applicable for the sale of natural resources. latory changes which relate to the govern- boom in discussions on foreign investment
Stability clause. This provision requires the ment take from the leaseholders profits and and M&A activity in Israel. Under the Frame-
government to guarantee regulatory stability other matters dealt with in the Framework work, Leviathan will need to be developed rap-
for 10 years. The clause in its original version when such changes could have a material ad- idly requiring the infusion of billions of dollars,
included in the December 2015 Framework verse effect (in the eyes of a reasonable inves- most of which will likely be funded by sources
precluded the government from initiating tor) on the leaseholders. from outside of Israel. Moreover, Israels gov-
new legislation that would change the main In the event of a material change of this ernment is set to shortly grant a new round of
parameters of the Framework and current kind, the government will undergo an evalu- exploratory permits as the countrys EEZ con-
regulations, and required the government to ation process to explore and devise solu- tinues to prove prospective for hydrocarbons.
oppose similar private legislation. These un- tions to sustain the economic viability of the In January it was reported that a geological
dertakings are conditional upon compliance projects. This process must be concluded study of the Daniel gas field off the coast of
by the leaseholders with their respective during a fixed and relatively short timetable Ashdod and near the Gaza Strip contains an
commitments under the Framework. and will take into account, inter alia, confor- estimated 8.9 tcf of natural gas.
mity with OECD and other worldwide stan- We are optimistic that the major regulato-
Judicial process dards; amounts already invested in the proj- ry hurdles have now been overcome so that
Following heated public discourse ques- ects; and the existence of approved export Israel can finally find its place as a global en-
tioning the governments policy consider- agreements. So far this revised Framework ergy provider as well as a home base for safe
ations, various interested and political groups has gone unchallenged although it cannot investment opportunities.
then challenged the Framework before the be ruled out that additional petitions will be
Supreme Court of Israel in its capacity as the submitted to the court.
High Court of Justice. Their appeal hinged on The authors
the legality of the government adopting this Going forward Shiri Shaham and Simon Weintraub are partners in
the Israeli law firm of Yigal Arnon & Co. specializing in
type of legislative-like agenda without pri- Recent events in Israels natural gas sec-
banking and oil and gas. Most recently, they represented
mary legislation of the Knesset (Israeli par- tor are encouraging for foreign investment JP Morgan, CitiGroup and HSBC as the lead underwrit-
liament). On March 27 this year, following a in Israel. The recent deliberations and legal ers in the Delek Group $2-billion bond offering in con-
review of each issue, the five Supreme Court proceedings surrounding the Framework nection with the development of the Tamar lease.
judges determined that the Framework in have showcased Israels vibrant democracy
its current form was not adopted properly, and strong rule of law. The High Court of
primarily on account of the legal status of its Justices opinion outlines a clear separation
Stability Clause. They gave the government of powers between Israels executive and
one year to resolve this issue. legislative branches, effectuating political,
The government promptly addressed the legal, and regulatory certainty all impera-
Courts concerns and on May 22, announced tive for direct foreign investment.
an amended Framework with a more lenient From an investment perspective, the
Stability Clause. While this still refers to a hope is that the Framework will serve as a
10-year long regulatory climate in the natu- stimulus in expediting development of Is- Left: Shiri Shaham. Right: Simon Weintraub.
ral gas sector, intended to attract investment, raels natural gas reserves and for promot- (Photos courtesy Yigal Arnon & Co.)

28 Offshore October 2016 www.offshore-mag.com

1610off_28 28 10/5/16 1:53 PM

1610off_29 29 10/5/16 1:53 PM
 OFFSHORE ECONOMICS

New approach to field development

can improve project feasibility
Gautam Chaudhury opex) and safety primarily due to reservoir uncertainty in terms of
Consultant well count, completion and intervention, net recovery, and fluid prop-
erties. Even considering a given reservoir of absolute certainty, dif-
ferent system concepts and development plans may be justified as a

F
strong business case depending on company or individual bias. Only
ield development planning requires seamless collaboration time can really tell if a selected concept is fit for purpose and fulfilled
and interface between subject matter experts from three ma- expectation relative to competing concepts.
jor disciplines: subsurface reservoir management, drilling Field development evaluation must consider strategies of pro-
and completion, and subsea plus surface facilities with associ- curement, project delivery, and contracting early on as they have
ated production planning. Each step is bound by the science significant impact on cost and schedule, thus ultimate success of
of business economics of systems selection, engineering, procure- the selected field development plan. Absence, inadequate, or inef-
ment and contracting strategy, regional politics, technology risk and ficient strategies may jeopardize the success of an otherwise sound
opportunity, and health and environmental safety. The process is field development concept plan. These strategies add robustness by
challenged by the risk of reservoir uncertainty while trying to justify reducing project execution risk and other associated uncertainties.
a robust business case capturing the possible potential, especially The following depicts a pragmatic fit-for-purpose approach that
when estimated net recovery is low (marginal fields). combines the best practice for each major discipline. The procedure
A field development plan consists of a reservoir depletion man- needs a multi-discipline experienced team, with deep understand-
agement plan, drilling and completion plan, production manage- ing in their respective and interfacing domains, using a systems
ment plan, and facilities systems concepts. These are selected approach challenging each constituent functional element, system,
through iterative interactions from multitudes of variations of the and procedure in terms of technology assurance of quality, risk,
three main disciplines subsurface, drilling completion, and surface and opportunity. Empowered champions must take the lead to step
facilities. Each reservoir comes with its unique constraints in terms changes challenging the current techniques and practices. If not,
of reservoir and other associated parameters influencing system se- high costs associated with offshore oil and gas exploration and pro-
lection. This makes it difficult to use reservoir depletion analog, duction will continue to be a barrier to future deepwater field devel-
especially for recent high-pressure/high-temperature discoveries in opment especially for challenging small fields.
ultra-deep Lower Tertiary subsalt Paleogene sands where adequate
past experience history is very limited. Decision making
There is no perfect solution in terms of life cycle cost (capex + Managing field development concept economics and risk are a
series of decision making processes with the objective to reduce
risk and maximize potential. Poor framing of problems, missed im-
portant aspects and opportunities, or sometimes topics addressed
inadequately with full spectrum of possible outcomes are some of
the unknown pitfalls in a decision making process. Framing of prob-
lems must be robust to ensure consistency of results. There should
be a procedure in place to measure compliance with risk criteria,
value generating decisions, and mitigation of risks associated with
options. The process will address how and to what extent each op-
tion will satisfy objectives, which represents value in terms of cost,
schedule, operability, and constructability. Risk is the barometer of
uncertainty and unexpected events affecting value proposition nega-
tively (risk) or positively (opportunity).

Concept screening
Following discovery of a prospect and initial reservoir characteriza-
tion, high level preliminary evaluation is made in terms of operators
strategic vision, commercial and technical risk, safety requirement,
potential for maximum return on investment (ROI), and minimum
risk to capital, life, and environment. The assessment is performed
based on past experience, data, knowledge, and/or lack of it. The
prospect will be further pursued only if all the findings are positive.
The final field development plan is selected by comparing risked
life cycle financial values in terms of net present value (NPV) or ROI
Effective field development planning requires seamless collaboration
between subsurface reservoir management, drilling and completion, and
of the competing plans. These consist of different development sce-
subsea plus surface facilities. narios with different logical and intuitive combinations of a reservoir

30 Offshore October 2016 www.offshore-mag.com

1610off_30 30 10/5/16 1:53 PM

 OFFSHORE ECONOMICS

depletion plan, production plan, and choice of drilling, completion, Technology opportunities
and facilities. The plan with highest median (P-50) NPV and low- Oil and gas projects run on status quo. There is a natural reluc-
est spread between P-90 and P-10 NPVs with the shortest schedule tance to be the first to adopt a new technology or solution. Engineers
will be selected. A high P-50 represents maximum return and lower will find creative ways to push technical solution boundaries when
difference between P-90 and P-10 reflects reduced uncertainty. In- challenged with a problem. Eventually, we will face the technical lim-
dividual companies have their own levels of requirement of these its where we will have to change the game. We need visionary ex-
probable NPV values for a plan to pass this gate. In addition, actual ecutive leadership empowered to take decisions who will embrace
procedure for determining the P-10 and P-90 value may be different. step changing technology.
Uncertainties in high value spending and revenues are included Enabling technology. When pushed to the limit, an enabling tech-
through assigned probability distributions representing uncertainty nology may get a chance through proper qualification and verifica-
and risk. For example, a spar platform has higher execution risk tion. Here limit means there is no other alternative than to abandon
as opposed to a semisubmersible due to increased offshore marine or postpone the project. Cost of an enabling technology is not a factor
operations for installation and commissioning. A risk reduction any more as long as overall NPV satisfies the company requirements.
factor may be used on the ground of past successful executions. Technology of opportunity. Promoting technology of opportunity is
A platform-based drilling operation has high capex but less opex very difficult in a high consequence environment where it is easier to
and uncertainty compared to using a mobile offshore drilling unit follow than lead to adopt new technology of opportunity to reduce cost.
(MODU) with increased cost and schedule uncertainty. The screen- However, for small deepwater fields technology of opportunity must be
ing process must consider both capex and opex. developed and pursued in low risk areas where reward exceeds risk
The selection screening process requires specialized tools, ex- otherwise they will never satisfy economic criteria. For example, low
tensive reliable database, lessons learned, and an integrated team cost dry tree capable semi type hull or TLP for deeper waters.
of highly experienced personnel with deep understanding from all
disciplines to guide in a rational and fit for purpose manner. The Standardization
field development plan management team should produce capex, Standardization of technology, design, contracting, and sourcing
opex, and schedule estimates of competing scenarios. Generally, es- can reduce cost and improve schedule significantly. This is more so
timates are made at -20% to +30% accuracy. Estimates are validated for procurement schedule where it may become an enabler for long
extensively through benchmarking, standardization, and normaliza- lead items. All big operating companies take advantage of standard-
tion for consistency and financial equivalency between competing ization one way or other at least for procurement contracts. Design
scenarios. standardization is not so common within oil and gas field develop-

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1610off_31 31 10/5/16 1:53 PM

 OFFSHORE ECONOMICS

ment. Exceptions are MODU rig designs which are built on payload Outline scope and system design concept options
steps and BOPs and trees that are built on pressure rating steps. In Develop project execution plan
most cases, floating systems, topsides facilities, and subsea hard- Identify and propose mitigation of all risks
ware and risers are purposely designed, specified, and constructed. Implement best practice on project organization and manage-
However, these systems may be designed and built in a standard- ment, team alignment, value-improving practice, opportunity
ized approach, based on step change. For example: and risk management, and lessons learned.
Hull form designs in 3,000-ton payload increments, three steps The project execution plan describes the planning for design, con-
of environments, and three steps of water depth struction, installation, commissioning, and start-up of the facilities. The
Topsides facilities with steps in pressure rating and sweet or focus is on execution after sanction creating the project level plan for:
sour service Meeting project functional and HSE objectives
Subsea hardware and pipelines based on pressure and water Organizing, contracting, and conducting execution plan
depth steps plus sweet and sour service Managing risk, opportunity, and changes
Flowlines and different types of risers in steps of pressure rat- Aligning the team for project execution and interface
ing and sweet and sour service. Manage quality, cost, schedule, and resource.

Procurement strategy Contracting strategy

Procurement is a key element in the execution and delivery of During the past few decades, large oil and gas projects were man-
any design and construction project. There should be a dedicated aged by commissioning outside contractors on an engineering, pro-
team in charge of sourcing suppliers, buying, expediting orders, curement, construction, and installation (EPCI) or lump-sum turnkey
inspecting bulk materials and manufacturing, and organizing deliv- (LSTK) basis and combine with in-house resources, forming a dedi-
ery and logistics. The team has full ownership of the budget and cated project team in charge of preparation, execution, and delivery
the delivery responsibility bounded by all stakeholder policies and of the project. While most of the elements for success were often pres-
code of ethics. The focus is on global procurement increasing sup- ent, this approach did not always bring anticipated benefits to owners
plier base through sourcing and qualification of new suppliers and or contractors. In recent years, contractors have suffered heavy loss-
products with target on high value items as well as dissemination of es and operators faced schedule delays, cost overruns, and operabil-
market intelligence and trends across all groups. Oil and gas explo- ity problems. Some of the reasons may be attributed to the following:
ration and production is driven by changing technology and long Lack of proper placement of project risks
lead capital intensive procurement. Informed decision making is Absence of clear definition of the work scope
critically important. Supply and demand information on raw materi- Tendency to be overly optimistic in all aspects, including supe-
als, equipment, fabrication, engineering, MODU, and construction riority complex and complaisance
and installation vessels can help give visibility over future pricing Biased approach from team members or stakeholders
changes and potential of any disruption. This is valuable information Not understanding potential negative events and local content
for operating companies to have during field development planning. issues
Operators relying on contractor to provide new technology so-
Project delivery strategy lutions when contractor has limited capital resources
Field development engineering is not only limited to selection of sys- Lack of deep understanding of the system design, construction,
tem concepts. It must also take account of the impact on cost, schedule, installation, and not properly including the potential impact of
and execution risk of all attendant project delivery strategy and con- project delivery and contracting strategy.
tracting. A well thought-out delivery strategy including contracting can In recent years, offshore projects are extremely large, complex,
help the bottom line NPV and reduce project execution risk. and less frequent. They require significant amount of upfront capital,
Strategy is formulated based on iterative discussions early on of expertise, and technology resources and pose high potential down-
any project, which then gives shape to subsequent plans and actions. side losses. Technology driven and evolving field developments re-
Often, we are quick and use past experience analog, which may quire high competency from all parties. Small field developments
have had different size, complexity, or risk than the one in hand. also depend on enabling or opportunity technology to be economi-
It is worth spending some time at the beginning to bring everyone cally viable. Technology subject matter experts with broad and deep
together, develop strategy, and document in the project execution understanding in linked disciplines are in short supply, particularly
plan. Without clear strategy, direction, and a project execution plan, within the operating companies due to re-organizations in the past.
inefficiencies and misalignments can occur, resulting in major finan- Problems with the past EPCI contracts and the escalated costs
cial consequence. For large offshore projects (half to several billion which followed have resulted in a demand for an alternative ap-
dollars), it is better to have a main overall project execution plan proach assuming that the direct owners team approach is not fea-
and then separate front-end and execution plans for several conve- sible. In an owners team approach all contracts are direct between
nient related project packages. A full field development project pro- company and service provider. The company mostly assumes all
gram may be managed in separate projects as drilling, production, risks, and success depends on companys ability to manage multi-
facilities, hull and mooring, and SURF facilities with proper interface tudes of contracts and stakeholders interactions. For various rea-
links. Economy of scale comes from the common execution plan sons, even if a company has the resources, this approach may only
strategies applied across all projects. work for smaller repeated projects. Primary issues with EPCI con-
The program execution plan should outline ways on how the team tracts echoed within the industry are allocation of risk and lack of
will avoid inefficiencies of a very large project diseconomy of scale definition of work scope. Based on this, an alternative is an engineer-
and achieve economy of scale through proper standardization, op- ing, procurement, and construction management (EPCM) contract.
timization, and integration across the entire project. The front-end The EPCM approach is somewhere in between owners team and
plan provides project scopes, plan, and optimization prior to sanc- EPCI approach. In the EPCM approach all contracts are between com-
tion, based on the following: pany and contractors thereby risk is with the company. A professional
Evaluate alternate field development options, including system EPCM service company performs design, engineering, and construc-
designs and concepts tion management but not a party to any contract related to construction

32 Offshore October 2016 www.offshore-mag.com

1610off_32 32 10/5/16 1:53 PM

 OFFSHORE ECONOMICS

or vendor provision. The relationship is like an owner-agent where the namely market condition, project type and size, operator and contrac-
owner monitors and influences performance and progress of the proj- tor resources, level of engineering definition, and finally a good proj-
ect. The main responsibilities of an EPCM service provider are: ect execution plan. It must be recognized that at the end of the day
Design including FEED as necessary to complete the project operating companies take all risks and pay for it all one way or other.
efficiently The philosophy should be to use a pragmatic, well-defined/task-based,
Planning procurement, bidding, and administration of contracts fit-for--purpose approach. Develop a strong project management plan,
Maintain overall schedule on track provide contingency measures for any indication of cost overruns or
Administration of construction and vendor contracts schedule delay, and then hope for the best and prepare for the worst.
Manage interface, changes, and report to owner.
Some of the major limitations for the owner in an EPCM approach are: Conclusions
Owner must be very pro-active to meet the construction respon- Generating economic value and control risk of a field development
sibility plan comes through the art of linking varieties of disciplines, apply-
Owner needs to integrate key people in strategic positions with- ing the science of logical determination of boundaries, and finally
in the EPCM organization to ensure day-to-day monitoring and engineering, planning, and managing with courage and persistence.
control The high cost of oil and gas exploration and production in deep-
Owner takes the ultimate responsibility on cost and schedule. water and deep reservoirs means that only large fields will be able
In an EPCM approach, the owner must have adequate resources to satisfy rigorous economic screening. A pragmatic fit-for-purpose
to integrate with EPCM project team during all phases of the proj- approach and responsible use of game-changing technology is re-
ect. Some of the universal characteristics of a successful project are: quired to make smaller fields economically viable.
Strong cross-functional and integrated project team A phased development plan by using early production system
Adequate front-end loading by project knowledgeable business may help better manage capital risk of reservoir uncertainty and
leadership provide necessary flexibility to capture potential upside benefits.
Engineering and project functions report to owner directly Exploration and development costs can be reduced by using im-
A system of continuous improvement (sign of excellence) proved drilling and completion technology, more dry tree production
Systematic progress and performance measurement using new hull forms, and conversion or life extension where feasible.
In-house resources to develop and shape projects ready for de- Unless empowered champions use step changes in technology,
tail design. the high costs of offshore oil and gas exploration and production
Contracting strategy of a large offshore project can take various will continue to be a barrier to future deepwater field development,
forms. There is no unique ideal solution. It will depend on many factors, especially for challenging small fields.

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1610off_33 33 10/5/16 1:53 PM

 GEOLOGY & GEOPHYSICS

Reprocessed survey reveals

potential play in the Bonaparte basin
Broadband 3D seismic
provides clearer picture
of hydrocarbon viability
Paolo Esestime
Karyna Rodriguez
David Eastwell
Spectrum Geo Ltd.

T
he Paleogene and Neogene intervals are
poorly documented and largely over-
looked from the hydrocarbon explora-
tion in the North West Shelf (NWS) of
Australia. However, there are indica-
tions of viable play in certain stratigraphic lev-
els. In the Bonaparte basin, for example, the
Pituri 1 well encountered minor oil within the
Eocene Grebe Sandstone, and minor fluores-
cence was observed in basal Miocene cuttings
in the Pollard 1 well.
In 2015, Spectrums Cartier-Main 3D multi- Location map of the Cartier-Main 3D survey, including geological domains, wells, hydrocarbon
client seismic survey was reprocessed through discoveries, and the current licensed area. The area in green shows the 2016 released acreage.
a broadband workflow that included effective (All images courtesy Spectrum Geo Ltd.)
de-ghosting techniques and pre-stack time
and depth migrations, achieving an extremely
significant imaging uplift. The survey covers
around 2,800 sq km (1,081 sq mi) on the east-
ern side of the Ashmore Platform between the
Browse and Bonaparte basins. The reprocess-
ing enhanced structural and stratigraphic ele-
ments at different levels, such as deep Permian
carbonate build-ups and Triassic horst blocks.
In the overburden section, the stratigraphic de-
tail of the Paleogene and Neogene sections has
allowed a deeper understanding of their evolu-
tion through time.

Regional setting
In Australias NWS, source rocks have been
deposited throughout various rifting events
since the Late Devonian and during the Early
Carboniferous and Early Permian.
Proven reservoirs extend from Permian shal-
low-water carbonates to Triassic-Jurassic sands,
the latter deposited during a transgressive event,
after a phase of uplift and inversion which was
active mainly during the Early Triassic.
In the Ashmore Platform, Triassic tectonism

Pre-STM section showing the main stratigraphic

sequences in the Paleogene and Neogene.

34 Offshore October 2016 www.offshore-mag.com

1610off_34 34 10/5/16 1:53 PM

 GEOLOGY & GEOPHYSICS

resulted in a sedimentary hiatus and a regional along the eastern margin of the Ashmore Seismic mapping
unconformity, overlain by Jurassic siliciclastic Platform, including Keeling-1, Woodbine-1, Seismic interpretation over the Cartier 3D
units, and discontinuously distributed lagoonal and Gryphea-1. These sequences usually start has been performed in the pre-stack time mi-
successions, which are mostly the expression with siliciclastic intervals, overlain by calcar- gration domain. The main objective was to rec-
of continental environments. enites and fine-grained limestones. The lime- ognize syn-sedimentary features related to the
Subsidence was re-established at the end of stones are deposited during highstand peri- Paleocene, Eocene, and Miocene intervals, all
the Jurassic and during the Cretaceous, accom- ods, when pelagic or distal conditions become of which have been calibrated through time-
panied by moderate tensile tectonics. As a con- widespread; the clastic deltas are forced to depth curves available for the Keeling-1 well.
sequence, a regional transgression allowed the prograde laterally in response to base level fall Picking the main sequence boundaries al-
siliciclastic to be deposited in nearshore deltas, during lowstand phases (Eocene Grebe and lowed seismic facies analysis between the inter-
characterized by initial fine-grained facies, and Miocene Oliver sandstone formations). vals, largely supported by spectral decomposi-
gradually passing up into coarser intervals and
shallow-water limestones, as marine conditions
returned. The Late Cretaceous sediments in-
clude the lowstand basin floor fans of the Puffin
formation, which is the most prolific hydrocar-
bon target currently explored.
By the end of the Cretaceous, sediment
supply became more complex, connecting ba-
sins with similar bathymetric conditions and
different depositional environments. Carbon-
ate development was extensive in areas with
restricted clastic inputs in both the Bonaparte
and Browse basins.
Several depositional sequences can be dis-
tinguished in the Paleocene, Eocene, and Mio-
cene and encountered in a number of wells

Stratigraphic column.

1610off_35 35 10/5/16 1:53 PM

 GEOLOGY & GEOPHYSICS

tion and the red green blue (RGB) color blend

display. Several volumes have been extracted
for incremental frequency bands, and output
as envelope of the amplitude at each frequency
slice, finally combined in an RGB image.
An evident sedimentary wedge can be
identified at the base of the Paleocene in the
southeast portion of the 3D. Detailed map-
ping highlighted various structural/strati-
graphic closures and a lateral geometry com-
patible with a distal fan-delta. The spectral
decomposition confirmed the position of a
delta front which originated from southwest;
the body appears mostly massive and chan-
neling can only be slightly distinguished.
A number of frequency slices have been RGB blend of the spectral decomposition slices within the Eocene siliciclastic interval.

created within the siliciclastic Eocene inter-

val (Hibernia formation); these indicate a pro-
grading pattern from northwest to southeast.
An interpreted platform can be correlated
with the Eocene shape of the Ashmore Plat-
form, which was probably uplifted and acted
as source for the sedimentary pulses. Mean-
dering and braided channels are clear in the
upper portion of this interval, within the plat-
form area, suggesting an estuarine setting.
Channels are evident in the siliciclastic
interval at the base of the Miocene, possibly
related to the Oliver sandstone formation. The
color blend allows identification of the differ-
ent domains which form the fan-delta, from
main linear channels to dendritic and mean-
dering patterns, these are concentrated in the
south, suggesting a sediment supply mainly
oriented from northwest to southeast.

Conclusion
Through the use of broadband 3D seismic,
Spectrum has performed a regional facies re-
connaissance study over the Paleogene and
Neogene sequences to support the viabil-
ity for hydrocarbon exploration of Cenozoic
plays in the Browse and Bonaparte basins.
The Paleocene fan-delta shows a mixed
character of mass transport and limited chan-
neling, with a clear provenance from SW and
a distal marine environment.
The Eocene and younger sections show
patterns and facies that can be correlated to a
dynamic bathymetric evolution, with mostly
shallowing upward sequences and coastal
areas probably affected by uplift and the
temporary development of continental condi-
tions. Clastic input mainly resulted from base
level fall and subsequent lowstand periods.
Seismic evidence indicates the sediment was
supplied from the main continental shelf and
the Ashmore Platform.
Cenozoic reservoir sections have been
encountered in a number of wells in the
Bonaparte basin with potential traps revealed
Different seismic display of the fan-delta deposits at the base of the Paleocene. From the top: Pre- by spectral decomposition from high-quality
STM section, RGB blend of the spectral decomposition slice, and time horizon map. 3D seismic data.

36 Offshore October 2016 www.offshore-mag.com

1610off_36 36 10/5/16 1:53 PM

 1144 THTH ANNUAL OV. 8 110,
ANNUAL NNOV. 0, 2016
2016

SUSTAINABILITY THROUGH THE CYCLE

MOODY
M O O DY GARDENS OT E L & CCONVENTION
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1610off_37 37 10/5/16 1:53 PM

 DRILLING & COMPLETION

Integrated MPD system aids

drilling operation offshore Brazil
Approach restores production to deepwater presalt well

D
eepwater presalt plays present signif- Leonel Carreo of constantly isolating the annulus and di-
icant challenges to well construction Angel Hernandez verting annulus returns for enhanced safety
that conventional drilling techniques Weatherford International and minimal environmental risk.
are unable to resolve promptly or The RCD was coupled with Weatherfords
profitably. An operator offshore Bra- Microflux control system, which identifies
zil was reminded of this fact when attempt- minute fluid influxes and losses early and
ing to reenter and explore the production with a high degree of precision. The control
potential of a P&Ad well. system can identify unique properties of dif-
The deepwater exploratory oil well was ferent wellbore events, and subsequently
considered undrillable using conventional distinguish between a potentially hazardous
overbalanced drilling practices because of kick and a relatively harmless event such as
bottomhole pressure challenges. The presalt, wellbore ballooning and breathing.
carbonate formation was naturally fractured In addition to the RCD, the control system
and prone to drilling fluid losses of up to 60 incorporates a Coriolis mass flowmeter that
bbl/hr (9.5 cu m/hr) in areas where high- captures data on mass and volume flow, as
pressure and loss zones were encountered. well as mud weight and temperature, from
The operator ran cement plugs to isolate returning annulus fluids at a sample rate of
the wellbore and reduce the frequency of multiple times per second. These data are
lost circulation events. But even after pump- then routed to an independent SCADA con-
ing 10 plugs, the fluid losses continued, pre- trol system that houses several data acquisi-
venting the well from reaching total depth tion components for measuring and analyz-
(TD) and prompting the operator to aban- ing fluid properties into one system. This
don its initial drilling program. intelligent control system uses proprietary
When the operator decided to try a differ- algorithms to detect downhole kicks and
ent approach, Weatherford was selected as losses and categorize their relative threat
the service provider in large part because level to the integrity of the well.
of the companys track record of deploying These datasets are transmitted in real time
managed pressure drilling (MPD) services to a newly built MPD decision support center
to drill more than 25 challenging wells in in Rio de Janeiro. The state-of-the-art facil-
Brazil. An adaptive drilling technique that ity contains an operations room for support
precisely controls a wellbores annular pres- personnel, a conference room with video/
sure profile, MPD deploys automated control teleconferencing capabilities, and a control
systems that detect minute downhole pres- room that houses multiple monitoring sta-
sure changes and then quickly adjust surface tions and simultaneously displays streaming
backpressure to minimize the magnitude MPD data on up to 24 individual drilling rigs.
of kicks or fluid losses. MPD brings added Through constant monitoring of the drilling
safety and efficiency to a drilling operation, operation, the center allows service company
helping to ensure that the driller reaches to- engineers and drilling advisors to collaborate
tal depth at lower costs and less risk. with their counterparts from the operators
Dynamic pore-pressure and formation- organization to investigate and properly diag-
integrity tests determined the wells drilling The Weatherford MPD riser joint contains an nose wellbore events, tailor the appropriate
window to be 0.89 lb/gal (106.64 kg/cu m). MPD flow spool, an annular isolation device, and response to an event, and keep drilling to to-
Given this narrow window, the team devised a below-tension-ring RCD, all of which work to tal depth with minimal expenditures.
a comprehensive MPD strategy that would enable closed-loop drilling in deepwater envi-
maintain constant bottomhole pressure to ronments. (Image courtesy Weatherford) Reaching the target
minimize losses and influxes while deliver- Drilling proceeded with this comprehensive
ing the well to total depth. control device (RCD). This RCD, a pressure- solution. Each time a loss zone was detected,
control solution for annulus gas diversion the team used the control system to adjust the
An integrated MPD solution during drilling, is integrated into the riser wellbore pressure profile by applying surface
An MPD riser joint was built containing to create a positive seal around the rotating backpressure. Even with a reduction in mud
a Weatherford below-tension ring rotating drill pipe and tool joints. This has the effect weight returns of 0.08 lb/gal (9.59 kg/cu m),

38 Offshore October 2016 www.offshore-mag.com

1610off_38 38 10/5/16 1:53 PM

 the system maintained constant bottomhole pressure and enabled drill-
ing to continue for the remainder of the section.
The well was landed to a TD of approximately 21,325 ft (6,500 m),
providing access to a 1,043-ft (318-m) reservoir containing API 31 oil.
By promptly detecting losses and adjusting bottomhole pressure, the
MPD system helped the operator avoid nonproductive time (NPT)
while transforming an abandoned well into a productive asset.

Expanding MPDs reach

MPDs success at delivering this well has been replicated many
times in other narrow-window formations in the region. This has
saved the operator millions of dollars on well construction costs
compared to conventional overbalanced drilling programs. The op-
erator has also begun expanding the application of MPD to drill
into depleted reservoirs with low pore pressures using a variation
known as pressurized mud cap drilling (PMCD). PMCD involves
drilling with no returns to surface and with an annulus fluid col-
umn, assisted by surface pressure, maintained above the forma-
tion. This fluid column, or mud cap, is kept underbalanced against
the lowest reservoir pressure to encourage production and prevent
lost circulation events.

With each new application,

the integrated MPD service
is proving to be a safe and
efficient means of making
undrillable wells drillable.



Since rolling out its integrated deepwater MPD service, Weather-
ford has helped the operator retrofit more than a dozen drilling rigs
for MPD operations in the so-called Golden Triangle region of Brazil,
West Africa, and the US Gulf of Mexico. The operator and service
provider continue to partner on these retrofit installations for drill-
for a complete offshore solution
ships working in Brazil, with the aim to make every drillship working Alimak Hek has been a leading provider of elevator
in Brazilian waters fully MPD capable. solutions to the offshore industry since 1974. Improve
Success in Brazil is spurring developments in other parts of Latin productivity, reduce operations and maintenance costs
America that have not traditionally used MPD in their field develop- during offshore lifting and materials handling with a
ments. The service provider is currently preparing an MPD operation rack and pinion or traction elevator from Alimak Hek.
in a first-of-its kind application in the deepwaters of the Caribbean Sea,
off the coast of Colombia. Built to perform in the worlds harshest environments
In preparation for this large drilling program, the company is Reduced costs, improved efficiency, superior HSE performance
drawing on the experience and knowledge gained from its Brazil op- Proven record in reliability, safety and durability
erations. The drilling rig is currently being retrofitted in Africa, and Extensive experience in explosion protection
Weatherford MPD specialists from Brazil and other regions are on Comprehensive project management, design and
location, rigging up the MPD equipment and ensuring that it per- installation services
forms seamlessly with the other systems on the rig. When the rig Global service and support network
arrives to begin drilling in late 2016, MPD specialists from Brazil will
1,000 + elevators delivered to the oil and gas industry
be part of the rig crew to ensure that the operator gets the maximum
benefit from the system, and lands the well to total depth safely and
cost effectively.
With each new application, Weatherfords integrated MPD ser-
vice is proving to be a safe and efficient means of making undrillable
wells drillable. And by reducing NPT and getting wells to total depth
www.alimakhek.com
faster, the service optimizes the profitability of expensive offshore
wells a major benefit whether oil prices are high or low.

www.offshore-mag.com October 2016 Offshore 39

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 DRILLING & COMPLETION

Change in drilling strategy

brings string of efficiency
milestones to Troll
Leif Petter Holme
Baker Hughes

G
roundbreaking drilling procedures and technologies have
played a vital role in transforming Norways Troll field from
a profitable oil-containing gas province into one of the North
Seas largest oilfields. Among the most important technol-
ogy that led to the success of the Troll oil development has
been rotary steerable systems (RSS) with sensors near the bit. RSS
technology has been a key enabler of precise placement of horizontal
wells in thin reservoirs such as the oil-bearing ones in Troll. Advances
in formation evaluation and drill bit technologies are now extending
the value of RSS-enabled drilling to record-setting, single-bit runs that
are significantly improving well efficiency and economics in the ma-
ture field.
To maintain maximum oil production and avoid any premature
gas breakthrough or water coning, wells are drilled at a controlled After reaching new performance benchmarks with the TalonForce bit, the
trajectory within 1.5 ft (.5 m) above the oil/water contact (OWC). plan is to integrate them into the new standard Troll BHA going forward.
Any departure from this position reduces the maximum possible (Courtesy Baker Hughes)
reservoir coverage. Over time, the relative location to the OWC has
become increasingly important because extensive production from about 3,936 ft (1,200 m) below the seabed.
the field creates movement in the fluid contacts. During the past few The Troll reservoir sands are in general made up of high-perme-
years, the field strategy to cost-effectively achieve more contact with ability C sand and lower-permeability M sand. A third lithological
the reservoir has shifted from drilling multilaterals to drilling side component is calcite-cemented sandstones. Calcite cement usually
tracks and extended-reach lateral sections from existing wells. appears in isolated zones in the sandstone, acting as permeability
More recently, to improve time and cost savings, the focus has barriers. The calcite-cemented sandstones may occur as discrete
been on drilling to total depth (TD) in one bit run. Baker Hughes has layers or nodules, layers of strata-bound concretions, scattered con-
adapted its drilling strategy for the field accordingly, through stan- cretions, and more rarely, patchy calcite. Calcite-cemented layers
dardization of bottomhole assemblies (BHA) and processes, and the typically have thicknesses from around 4 in. to 3 or 6 ft (10 cm to 1 or
integration of a new line of Talon Force polycrystalline diamond com- 2 m), and vary widely in lateral extent. The average calcite content of
pact (PDC) bits and cutters to withstand the dense calcite cementa- Troll oil reservoirs has been 7-10% annually between 2007 and 2015.
tion within the thin sandstone oil columns. These changes have led
to major improvements in well efficiency. Within the last two years, Troll oil drilling challenges
the integrated drilling systems have achieved longer, record-setting, The complex geology of the Troll oil reservoirs present many
single-bit runs the 15,000+-18,000+- ft (5,000+- to 6,000+-m) lateral challenges to drilling operations. Faulting and changes in the OWC
distance range. The most recent run, completed in July 2016, was create challenges to keeping the well centered to the OWC. Signifi-
19,960 ft (6,084) m. cant time spent drilling through abrasive sandstone can cause ex-
cessive wear on logging-while-drilling (LWD) tools, the BHA, and
Troll field background the bit. These issues are heightened by unpredictable zones of cal-
Discovered in 1979, the Troll field covers some 290 sq mi (750 cite cementation.
km2) in the Norwegian North Sea and contains 60% of the total gas The most common Troll reservoir sands have a rock strength
reserves on the Norwegian outer continental shelf. Reservoir spe- varying from 4,000 psi to 8,000 psi that easily could be drilled with
cialists estimate the fields gas will continue to be produced econom- instantaneous rates of penetration (ROP) on the order of 300 ft/hr
ically for at least 70 more years. (100 m/hr). On the other hand, the zones of calcite cementation
Considerable oil exists in the field, but the thin oil reservoirs 72- vary in rock strength from 15,000 psi to more than 25,000 psi, which
85 ft (22-26 m) in the Troll West oil province and 36-43 ft (11-13 m can compromise drilling performance to the point that ROP occa-
the Troll West gas province) were not economically viable for pro- sionally will be less than 6 ft/hr (2 m/hr). Geosteering in thin oil
duction in the early years of the field. Both oil reservoirs are located columns of sandstone interbedded with calcite cementation poses

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 DRILLING & COMPLETION

almost reaching the limit for over-torquing the connec-

Summary of the Troll field record-setting, single-bit runs. tions. Adding up to 2.5% lubricant to the mud reduced
Well Year Length drilled BHA the friction between the hole wall and the drillstring,
1 2014 16,598 ft (5,059 m) 8.5 AutoTrak/CoPilot/OnTrak/LithoTrak/Talon and between the casing and drillstring. This resulted
in approximately 20% reduction in the surface torque
2 2015 16,900 ft (5,148 m) 8.5 AutoTrak/CoPilot/OnTrak/LithoTrak/Talon
measured on the top drive. Precise well control and
3 2016 17,356 ft (5,290 m) 8.5 AutoTrak/CoPilot/AziTrak/VisiTrak/LithoTrak/Talon Force trajectory were maintained, and ROP for the single
4 2016 19,960 ft (6,084 m) AutoTrak/CoPilot/OnTrak/LithoTrak/Talon Force with Stabilit cutters run was 29.77 m/hr, as stipulated by the operator. Ap-
proximately a day of rig time was saved.
the risk of deflections, low ROP, stickslip, and vibrations. Well 3. A third drilling record for the Troll field was set in April
Not only do the calcite stringers or nodules pose challenges to drill- 2016 with an 8-in. section length of 17,356 ft (5,290 m) drilled in one
ing performance, they also can significantly impact well placement. run. The 6-in. BHA, which included the Talon Force PDC bit with
With a window of only .5 m above the well for 6,000-m (19,685-ft) StaySharp cutters, drilled the challenging horizontal reservoir section
lengths, sudden contrasts in formation hardness between porous sand- in 221 circulating hours through the calcite-cemented sandstone to a
stone and hard calcite can damage the bit. Additionally, the geometry final TD of 25,005 ft (7,317 m). The new bit and cutter combination
of the calcite body in relation to the planned well path can cause devia- helped to improve drilling efficiency and overall performance.
tion from the planned trajectory. In these instances, because of differing Precise geological wellbore placement was provided by using the
rock hardness, the drilling assembly follows the path of least resistance companys VisiTrak real-time reservoir navigation and analysis ser-
and creates an unwanted angular deflection, or high local dogleg. vice within the thin oil-bearing layer, and following a constant 1-2-m
distance to the OWC. The service was selected because of its unique
Overcoming the challenges ability to provide a reservoir-scale view 360 around the borehole
Overcoming the drilling challenges in the Troll fields complex oil and to detect and map multiple bed boundaries and reservoir 100
reservoirs has been a function of continuous improvement of processes ft away from the wellbore, in real time. The knowledge gained from
and procedures, BHAs, tools, fluids, and bits, and standardization when- this service, combined with the precise drilling capability of the
ever possible and beneficial. Proactive, strategic operational planning, RSS, helped maintain the control necessary to optimally place the
cross-discipline collaboration, active use of drilling parameters during wellbore close to the OWC while maintaining ROP. Seismic interpre-
drilling, close communication between experienced and focused per- tation had indicated two possible areas where the reservoir roof was
sonnel both offshore and in offices, after-action reviews and analyses, descending close to an unstable shale section. By mapping reservoir
and sharing of lessons learned have been critical success factors. architecture to surface seismic data, the real-time reservoir naviga-
The length of horizontal sections drilled with one bit run has in- tion and analysis service showed that the roof was significantly far-
creased, with new records being set by each successive run. The ther from the wellbore than expected in these intervals. Without the
PERFFLOW LD water-based reservoir drill-in fluid (RDIF) is also service, ROP would have been reduced unnecessarily to avoid an
setting records in these long horizontal sections, which are typically inaccurate boundary.
drilled with oil-based mud. A summary of the most recent records is Additional expected drilling challenges, such as drilling through
presented in the associated table. faults and drillstring torque limitations, were handled successfully
with only minor impact on the operation.
Single-bit runs Well 4. The most recent Troll drilling record was set in July of
The following are short summaries of some of the single-bit runs. this year, with a single bit run of 19,961 ft (6,084 m). The well team
Well 1. Objectives for this well, drilled in mid-2014, were to per- drilled a 19,960 ft (6,084 m) horizontal section comprised of 5.2%
form open-hole side track (OHST) after drilling 11,482 ft (3,500 m) C-sand calcite in one run to section TD, with a total depth of 25,922
on the first branch, then drill the second branch totaling more than ft (7,901 m) 18% longer than the distance of well 2 and 15% longer
16,404 ft (5,000 m) horizontal in one bit/BHA run. than well 3. ROP was maintained at 22.9 m/hr. As planned for mini-
The BHA included a Talon high-efficiency PDC bit with EZCurve mizing torque and drag, the well path was adjusted while drilling to
directional technology, integrated with the AutoTrak RSS and Co- reduce dogleg severity to below 3.0/100 ft. Lubricants were added
Pilot measurement-while-drilling (MWD) system. Additionally, the to the mud from the start of drilling to maintain low vibration and
companys reservoir navigation services provided active geosteer- torque values. Vibration data was low throughout, with the little that
ing with azimuthal LWD data. was seen being formation-related.
The EZCurve directional technology maintained steerability and The dramatic increase in distance drilled on this run is attribut-
reduced vibrations to mitigate BHA tool failure. The RSS provided able to the companys new Talon Force PDC bit that uses Stabilis re-
precise well control and trajectory, and left a clean hole for the inforced cutters to extend bit life in Trolls abrasive and impact-prone
completion system. The MWD system delivered real-time drilling drilling environment. The cutters geometry adds a secondary bevel
optimization data to enhance drilling performance. on the face of the cutter to increase its strength and protect against
The operator drilled a field-record distance of 16,598 ft (5 059 m), ROP-limiting chipping and spalling. This feature provides lower and
including an open-hole side track, in a single run. ROP averaged more consistent torque response across changing depths of cuts to
98.8 ft/hr (30.1 m/hr), 27% faster than the planned benchmark of improve ROP and overall performance. The cutters can withstand a
72.2 ft/hr (22.0 m/hr). higher degree of wear and improve torsional stability in interbedded
Well 2. The company set a new record in October 2015 by drilling or directional applications.
a 16,900-ft (5148-m) section in a single bit run. Using essentially the The first of the new bits arrived in Norway in December 2015 and
same BHA as Well 1, the objective was to drill as efficiently and quick- proved highly effective. The new Talon Force bits have not only set
ly as possible within safe limits to maintain wellbore and log quality. new performance benchmarks for the Troll field; they have been
Common procedure during drilling in the Troll reservoir has retrieved after drilling through calcites in extremely long sections
been to limit the maximum ROP to 60 m/hr. In this section, ROP showing very little wear. Plans are to integrate the new bit into the
was further limited in long intervals due to data density and hole standard Troll BHA going forward to continue to improve efficiency
cleaning. High torque was as expected toward the end of the section, and wellbore quality while increasing single-bit distances drilled.

www.offshore-mag.com October 2016 Offshore 41

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 DRILLING & COMPLETION

Self-installing float enhances

deepwater downhole protection
A
comprehensive, compliant downhole Mike Churchill bottomhole assembly (BHA) bypassing the
barrier implementation strategy is Churchill Drilling Tools installed floats. This could be the opening of
paramount for any well operation. a bypass valve above the floats to cure losses,
This is even more critical in deepwa- for example. A risk assessment may conclude
ter, where the risk factors and com- that floats should be placed above the valve in
plexity are often multiplied many times over. certain situations.
Within the confines of both external and in- the RIH process, especially in deepwater. A drop in check valve (DICV) is a standard
ternal regulatory controls the operator has One option is to use ported floats, con- piece of well control contingency equipment
to choose the most appropriate way to pro- taining a small bleed-hole that allows a slow which is also a non-return valve. However, un-
tect the rig and crew from the gas in the for- equalization of pressure and gradual filling like the conventional float that is permanently
mation. Installing non-return valves (NRVs), of the pipe. However, by definition ported installed in the sub, the DICV is dropped into
commonly referred to as floats, in deepwa- floats are not proper barriers and in any a landing sub only when the added barrier
ter drillstrings has delivered significant time case, even assuming the ports do not plug is actually needed. The landing sub would
and cost savings without compromising the with cuttings from the hole, the fill rate is typically be placed above the BHA and any
fundamentals of well control. unlikely to be fast enough to remove the conceivable leak path. But although effective
When the string is in open hole various need to top fill completely. So while floats of- in an emergency, it is costly to use because
protection barriers are normally in play aside fer invaluable protection they also introduce once dropped it restricts access to tools in the
from mud weight and the BOPs at surface. additional complexity, time and cost, espe- BHA and restricts pumping at full flow until it
Floats placed inside the drillstring, often just cially to the RIH process. is fished back out. Deployment of the DICV is
above the bit for maximum bit-plugging pro- therefore to be avoided if possible.
tection, should close out any risk of influx Contingency scenarios An example of a multiple-contingency sce-
from the formation when the pumps are off For operators drilling deepwater and HP/ nario is stuck pipe that could not be freed,
(the most common arrangement for mak- HT wells, heightened safety concerns have requiring severance of a lower part of the
ing and breaking connections). However, if increased the requirement for running floats drillstring with the consequent loss of the float
a major situation arises, pumping may either outside cased hole in any phase exposed to protection in it. The fact that there might be no
be impossible or undesirable. In this case the the formation. This has extended to contin- float between the rig and the formation would
loss of the circulation as a barrier makes it gency scenarios and even perhaps contingen- also be a major concern in the planning stages.
vital that the floats are in working order. No cy-on-contingency scenarios. For example, Another driver for float demand is the nar-
intervention will be required from the crew, there might be a secondary flow path into the row pressure windows that are commonly ad-
the floats should shut the instant there is any
reverse flow and hold any influx at bay. Typi- Chur
ch
cally, a pair of floats will be installed for insur- (All im ills self
ages -filli
ance against the potential failure of one. cour ng float
tesy imm
Chur e
Whenever the string is being lowered into chill diately p
Drilli rior t
hole, the operator will see that the floats are ng To o da
ols) rt ac
tivat
working by correct displacement of annular ion.
fluid from the hole. This should occur at a Self
-fillin
volume equal to the volume of pipe being in- g flo
at in
serted into the hole. However, while this is flapp
er co
a useful positive indicator there is also a sig- nfigu
ra tion
nificant downside. When running into hole .
(RIH) fully floated the pipe is prevented
from self-filling, leading to a void of air at the
top of the string that becomes longer and
deeper with each stand that is run in. Unless
Self
the pipe is filled from the top, the hydrostat- -fillin
g flo
ic differential pressure on the pipe, with air at in
pop
p et co
on the inside but mud at great depth on the nfigu
ratio
outside, will crush the pipe. n .
Top-filling the pipe is analogous to trying
to pour water into a drinking straw perfectly
possible, but very slow and messy depending
on the technique. Mud spillage on the rig floor
adds cost and risk, but more significantly, the
slow filling of the pipe can add many hours to

42 Offshore October 2016 www.offshore-mag.com

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 DRILLING & COMPLETION

dressed via techniques such as under- balanced new configuration they must be above the MWD been up to 6 hours per RIH. In each case the
and managed pressure drilling. Where the bar- to give the dart a thru-bore to reach the sub. operator selected the flapper float format.
rier of mud weight over balance is removed, Although the industry broadly welcomed An alternative version of the system is the
maintaining a rigorous float regime becomes this development at the time, uptake initially more rugged, poppet type format, where cen-
even more critical to protect against deviations was fairly limited, based partly on the per- trally mounted high strength closing springs
in the pressure that might lead to problems. ceived costs and risks of procedural changes and tungsten carbide pistons with a ceramic
in a $100/bbl environment. Four years later, seal interface provide a robust design. In the
Self-filling float solution however, a completely different environment majority of cases, however operators prefer
Non-pump-able, self-filling floats have been has emerged, with demand growing strongly the flexibility of thru-bore access offered by
available for some time. Essentially the float for this simple technology in deepwater opera- the flapper type format.
is dormant during RIH but when pumping be- tions, underlining the cost benefit of making the A new development is a large bore version
gins the hold-open mechanism is dislodged change in procedure. Across 10 different de- of the self-filling float, known as the DURA
and the float becomes active. One drawback ployments self-filling RIH has been performed (double upper reserve activating) drill float.
is that shallow-hole testing of the MWD, for down to measured depths ranging from 13,000- This allows a dormant flapper float to be run
example, is not possible because pumping 21,000 ft (3,962-6,401 m). This has meant that even higher up the string within the drill pipe
to test the MWD at the beginning of the RIH RIH to the casing shoe or to the completion is for potentially critical contingencies. One of
would activate the float and prevent any fur- being performed at full speed, with activation of these is as a back-up to the primary floats,
ther self-filling from taking place. The inabil- the float only taking place just before the per- which if damaged during drilling may require
ity to pump and test can be extremely costly manent barrier is about to be removed. a trip for replacement. Activating the DURA
if it means set-up issues are only discovered In these runs, versions of the tool deployed drill float could save a replacement trip or en-
when on bottom, particularly in deepwater. included 6-in., 8-in. and 9-in. sizes, at able allow a much safer exit from the hole.
In 2012, Churchill Drilling Tools introduced angles up to 40 and activation shear-out pres- Another scenario is where the primary floats
the first dart-activated self-filling float. This was sures in the 600-700 psi (41.4-48 bar) range. A have become bypassed by a flow path into the
designed to overcome the previous hold-open typical sequence of top-filling every 10 stands string above them. This could be due to cir-
limitation by providing full pumping capabil- or 1,000 ft (305 m) of pipe RIH might take culation bypass, tool failure, twist-off, or in an
ity. When approaching activation depth, a dart up to 20 minutes depending on the top-filling extreme case, stuck-pipe severance. In all of
dropped and pumped into the sub would shear methodology. By mid-September, with median these contingency scenarios the DURA drill
out and activate the system. Previously, the floats activation at depths around 18,000 ft (5,486 m), float will provide the option to recover to float-
would be placed just above the bit, but in this time savings for this years deployments have ed state without losing pumping capability.

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Working together to provide mooring solutions

Easy disconnect of DP/mooring capable and

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DELMAR SYSTEMS, INC. INTEROCEAN SYSTEMS, LLC.

Operations and Headquarters San Diego, California USA

DELMAR
Broussard, Louisiana USA Tel: +1 858.565.8400
Tel: +1 337.365.0180

www.delmarus.com [email protected]
InterOcean Systems, LLC is an affiliate of Delmar Systems, Inc.

1610off_43 43 10/5/16 1:53 PM

 P R O D U C T I O N O P E R AT I O N S

New cybersecurity lab Rick Scott

examines computational FPSO

Cris DeWitt
ABS

Innovative approach assesses both physical and digital sides

U
ntil a few years ago, many offshore
assets were able to operate their en- Actionable knowledge (knowledge that is
actually applied to the system to control outcomes)
Amount of data under curve
tire working lives using only the safe-
ty features that were installed during Knowledge (created by applications,
human evaluation, etc.)
construction. But times are chang-
Transforming functions Organized data (considered needed or
ing. The historically slow pace of technology (applied to data to filter, combine, possibly useful, schema constrained,
adoption has accelerated as the widespread and shape it for use where complex, maintenance intensive, security
use of automation becomes more practical losses occur, decisions are made, challenged ... databases)
value is assigned, limitations
and cost-effective. With the industrys move are established)
toward deployment of highly instrumented, Data (sensed or imposed, measured,
imaged, calculated, volatile, insecure,
automated, and connected assets, there has not organized)
been a realization that new operational chal-
lenges face floating production, storage, and
offloading (FPSO) units.
Today, investing in cybersafety is an ac-
cepted requirement for FPSOs and other off-
shore assets, and the amount being invested
is growing rapidly. Analysts predict global Data type or source
spend in this area will top $1 trillion over the
The ability to gather enormous volumes of data creates the challenge of how to use the data to ad-
next five years. With such high levels of finan- vantage. By monitoring, gathering, evaluating and synthesizing input, it is possible to turn raw data
cial commitment and attention, cybersecurity into actionable knowledge. (Image courtesy ABS)
is a hot topic. As a result of its surrounding
publicity, it is easy to get caught up in buzz based on mathematical descriptions, but one about sensing total vessel health and ben-
words and to be overwhelmed by the flood has a dominant physical presence and the eficially communicating that knowledge to
of information in the public domain. Argu- other does not. While the physical version its operators and monitors. When used in
ably, if the industry is to find a way to contend clearly depends on heavy steel to function, combination, such tools can magnify the no-
long term with cyber threats, a more focused, the other cyber FPSO relies on relatively tion of asset safety to a level well beyond the
precise, and measurable way a rigorous en- unseen computational information that it physical vessel.
gineering approach is needed to deal with provides. The safety of this second vessel In creating and providing guidance for safe
such challenges. is critical to safe operation, and it is the fo- operation of cybersystems, it is critical to un-
cus of a new and important capability being derstand that the computational FPSO can
Beyond the physical asset rapidly expanded within ABS. Established be and must be engineered with the same
Classification societies have worked with earlier this year, the organizations Cyber- principles as the steel FPSO. The focal point
the offshore industry since its inception to Safety laboratory is being created to prove, of that engineering is the development of ar-
improve the safety and security of assets, analyze, and test data integrity and security chitectural and visual representations of data
but the face of safety is changing. A new concepts. In that way, it is different from oth- generation points, communication pathways,
approach that extends beyond the physical er labs that concentrate on certifying tools. and use points for actionable knowledge. The
vessel is being conceptualized by the cyber- Beyond security, the team is using this model of the cybersystem of an FPSO is be-
safety team at ABS. Like the steel exterior, lab to better understand how to engineer ing developed to mathematically describe and
which is designed based on mathematical and manage the emerging communicating investigate the computerized elements of a
descriptions, FPSOs and other vessels have ship, or a vessel that is heavily electroni- vessel in much the same way that the steel ves-
a cyberstructure operating on interconnect- cally sensed and constantly producing very sel is described, investigated, and made safer.
ed networks that, until now, has been mostly large amounts of data. This knowledge is The intent is to use this model to describe the
unseen. Yet, that structure has as much im- key to understanding a units critical listen- systems characteristics (e.g., tasks, behav-
pact on the FPSOs functionality and safety ing points, visualizing the most useful and iors, capabilities, efficiencies, vulnerabilities,
as the steel vessel does. cost-effective placement of sensors and failures, etc.) using mathematically based en-
In recognition of this idea, an FPSO is managing the impact of very large data sets gineering concepts.
viewed by the team as two real but distinctly on both design and operation. Tools derived The FPSO cybersystem model is to be
different vessels one with a very visible from this type of engineering information a computational and graphical view of the
steel face and another face that is mostly un- are being contemplated that will enable the digital assets. This view provides a complete
seen. Both are engineered and constructed industry to answer important questions representation of the elements of a vessels

44 Offshore October 2016 www.offshore-mag.com

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 P R O D U C T I O N O P E R AT I O N S

cybersystems, making it a communicating

ship. This holistic approach results in action- This unique approach to cybersafety
able guidance that draws clear the distinctions
between traditional IT practices and equally charts a new path, delivering wider
or more complex operational technology
practices. It is a view that considers the safety and deeper classification services
engineering aspects of an FPSO in the increas-
ingly computerized context of the offshore in-
as technology evolves and becomes
dustry, beyond more familiar IT systems that
support the industrys business mission. This
more sophisticated.
approach goes beyond regulatory compliance
and moves into the realm of advanced data that the industry can use to make better are decomposed and characterized with at-
management and data analytics. decisions about automation, cybersecurity, tributes that allow the factorys behavior, risk
With sensors and instrumentation feed- data and system integrity, and even supply points, integrity reducers, and cybersecurity
ing a constant stream of health data, the hull chain management. Through continued penetration points to be analyzed. It provides
becomes alive, continuously communicating development, it may even provide a view of a conceptual way of contemplating the un-
its condition. Expectedly, a detailed FPSO how much actionable information is actually seen digital intelligence that provides semi-
cybersystem model will show these inputs, delivered through investment in sensors, automated and automated decision support
their functions, and connections to provide data collection, data analytics, and complex for operating the FPSO. This is a highly spe-
a more understandable representation of onboard communications systems. The cialized engineering view of the brains of
how data travels and is used onboard. It will overarching goal is to help industry under- the asset through which information support
show the digital components that are neces- stand, prove, analyze, and evaluate mas- system behaviors are described, examined,
sary to safe vessel operation and provide sively integrated systems, supporting data and predicted through an engineering lens.
the clarity needed to assign critical status to integrity, and cybersecurity concepts. When represented as schematics, these
cybersystem components in much the same cybersystem views are made visual as lay-
way that this designation is given to heavily Making the intangible ered images of categorized functions resi-
monitored and protected physical workings tangible dent onboard the FPSO (e.g., power man-
of the steel vessel. Although the concepts outlined are some- agement, navigation, blowout prevention,
Additional work focuses on understanding what abstract, they become more compre- etc.) and the information processes that
the integrity and use of data collected aboard hensible when an FPSOs cybersystem is support those functions. These images are
the FSPO. By representing collected data as visualized as a factory that produces action- similar conceptually to electrical or hydrau-
a proprietary asset that is transformed into able knowledge as the end product. The raw lic schematic diagrams that are more acces-
organized information, the digital depiction material is data that is digitally manipulated, sible to technical staff aboard the vessel.
can be translated into actionable, operational stored, and transformed into information Beyond the uses for onboard FPSO per-
knowledge that in turn can inform the ac- that can be used by onboard equipment sonnel, the described representation of cy-
tions of those maintaining it. While today, the and staff to enable safe and effective opera- bersystems allows owners and operators
primary custodians of the vessel are people, tion. In practice, this knowledge factory can to focus on safety and levels of criticality of
there is a clear trend toward augmenting the be visualized as a schematic diagram that data that improve the ability to maintain as-
skills and capabilities of crew with automa- enables the user to mathematically charac- set integrity. It enables engineers to evalu-
tion and decision support tools that make terize the processes within the information ate the dynamics and security of data being
their jobs easier and safer. factory the knowledge production system captured and communicated, which vastly
Whether applied to software control sys- working to convert data into information, in- improves the ability to assess cybersafety.
tems, sensor technology, cybersecurity, or formation into knowledge, and finally knowl- Today, a family of representative vessels
crew decision support, this research will edge into actionable knowledge that informs and their various levels of automation is
provide a clear and accessible basis for vessel functions and activities. being created to begin understanding the
industry-wide understanding and improve- Within the model of the FPSOs cybersys- broader potential for the cybersystem
ment. It has the potential to provide insight tem, the processes of the information factory models. The concept is even being con-
sidered for similar uses to research these
Risk-based management program introduced systems for other types of assets, including
Through its CyberSafety laboratory, ABS has generated multiple volumes of a ports, pipelines, and related infrastructure.
suite of related documents, introducing the first module, Guidance Notes on the With continued research and develop-
Application of Cybersecurity Principles to Marine and Offshore Operations in Febru- ment, this new engineering representation
ary 2016. This document was the industrys first risk-based management program of FPSO cybersystems has the potential to
for applying best practice approaches to four key cyber areas: security, automated deliver useful insights into how much ac-
systems safety, data integrity, and software verification. tionable knowledge is yielded through the
Additional guides and guidance notes address operational technology and investment made in sensors, data collection,
information technology assessment, guidance on data integrity for the marine data analytics and complex onboard com-
and offshore industries, and systems verification. Two additional volumes discuss
munications systems. This unique approach
integrated software quality management, while the final volume will provide a guide
to cybersafety charts a new path, delivering
for cyber testing, providing a methodology for testing systems onboard marine and
wider and deeper classification services as
offshore assets.
Since this guidance is built using the lens of safety for offshore assets, it ad- technology evolves and becomes more so-
dresses concerns that make sense to owners and operators, which is particularly phisticated. It provides a novel approach to
important in an environment filled with noise, uncertainty, and doubt. addressing cyber-enabled systems that em-
phasizes human and systems safety.

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 P R O D U C T I O N O P E R AT I O N S

Long-term demand
still strong for FLNG units
Stranded gas seen as driver for continued growth
Mark Adeosun has been sanctioned since the price downturn two years ago.
Douglas-Westwood This pause in project sanctioning will result in reduced expendi-
ture throughout 2019-2020. However, despite near-term concerns,
the long-term outlook is largely positive. LNG is expected to be key

D
in meeting growing global energy demand likely prompting fur-
espite concerns over the fall in LNG spot prices and the lack ther expenditure on FLNG projects. FLNG in particular will be a
of sanctioning for new floating liquefaction projects, capex focus of investment due to the location of many of the worlds re-
on FLNG units will total $41.6 billion over the period of 2016- maining massive gas reserves, increasingly found in remote loca-
2022. Liquefaction units will account for 59% of expenditure tions. For these reserves, FLNG development solutions are often
totaling $24.7 billion. Import units will make up the remain- the only viable method of extraction. Furthermore, future concepts
ing $16.9 billion 41% of total expenditure over the forecast period. such as the floating LNG power station (FLPS) a combination of
Challenging market conditions have resulted in contractors opting floating regasification unit and power plant will also support the
to consolidate their core offerings in the near term. use of FLNG technology beyond the forecast period.

General overview Liquefaction overview

In recent years, global economic growth has been the main driver The floating liquefaction development concept is still an emerging
of increased energy demand. LNG demand is also expected to benefit technology: The first unit of its kind will commence commercial pro-
from efforts to reduce global emissions by providing the means for duction before the end of 2016. This landmark FLNG liquefaction proj-
a shift from the use of coal to gas as a source of energy. Continued ect is Petronas PFLNG Satu, which will be producing from the Kanowit
industrialization in Africa, Asia, and Latin America is expected to lead gas field offshore Malaysia. The long-awaited Shell Prelude FLNG unit,
to an upsurge in demand for import units. In line with this, countries which was sanctioned in 2011, continues to experience further defer-
in Africa such as Benin, Ghana, Ivory Coast, and South Africa are ex- ments as a result of the complexity of the processing module. It is now
pected to have their first floating import vessels installed before the expected to be in operation by 2018, barring any further delays. Other
end of the forecast period, which will help improve gas supply. liquefaction vessels currently under construction and due to start-up
LNG and FLNG developers often have to lock in a certain per- before the end of 2018 include Perencos GoFLNG, and Exmars FLNG
centage of LNG purchase contracts before progressing with project (Caribbean FLNG). However, Exmar is currently in talks with several
development. Current market conditions put developers at a serious parties regarding the final deployment of its unit, due to the termination
disadvantage when trying to secure long-term supply agreements. of an initial agreement with Pacific Exploration and Production (PEP)
The current oil price environment has been an incentive for compa- to send it to work offshore Colombia. Other projects currently under
nies to rely on the spot market to supply long-term LNG deals, in construction but experiencing considerable delays include Ophir En-
order to capitalize on low commodity prices. There will be limited ergys Fortuna FLNG and Petronas Rotan FLNG (PFLNG 2).
growth in expenditure after the installation of Shells Prelude FLNG Many current FLNG projects have opted for newbuilds, however,
unit in 2018, as only one liquefaction unit (GoFLNG Cameroon) the two proposed units in Africa have chosen converted LNG carri-
Global FLNG expenditure 2009-2022 Percentage regional comparison on FLNG 2016-2022

Source: Douglas-Westwood, World FLNG Market Forecast 2016-2022 Source: Douglas-Westwood, World FLNG Market Forecast 2016-2022

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 P R O D U C T I O N O P E R AT I O N S

ers for fields in Cameroon and Equatorial Guinea. Africa will account Eastern Europe and FSU forecast expenditure will represent just
for 49% of floating liquefaction expenditure over the forecast period. 3% of the global total. Spend in this region relates solely to import
Yet, most of the East African projects which account for the major- regasification facilities with the intention of diversifying regional gas
ity of expenditure are at an early stage. Eni is expected to make its supply. Gazprom is also expected to have the Kaliningrad FSRU de-
final investment decision (FID) on its $5-billion Coral South liquefac- livered by the end of 2017.
tion vessel offshore Mozambique in 2017. The sustained industry Latin America will account for 7% of global capex. This is driven
downturn has resulted in substantial deferrals to capital intensive by both floating import and liquefaction facilities. However, the Ex-
projects. This has particularly impacted developments in Australia, mar FLNG, which was initially designated to be installed in the re-
with delays to Browse, Scarborough, and Cash-Maple as project de- gion, may be deployed elsewhere: Exmar is reportedly open to all
velopers look to maximize profits for stakeholders. Furthermore, options following the termination of its agreement with PEP.
government preference for an onshore liquefaction terminal has led The Middle East will account for 7% of global expenditure. This
to the cancellation of Inpexs proposed $5.4-billion liquefaction unit is driven by the planned liquefaction facility offshore Iran and other
for the Abadi gas field offshore Indonesia. import facilities in Bahrain, Lebanon, and the UAE.
North America will have no expenditure allocated for either im-
Import overview port or liquefaction facilities over the forecast period. The region
Over the forecast period, expenditure on import units will be has moved from being a net importer of gas to an exporter following
driven by the growth in domestic gas demand in nations with lim- the explosion of shale gas production. Massive investment has been
ited sources of supply. Forecast expenditure is also driven by the made in onshore liquefaction projects in both US and Canada, with
continuous increase in energy demand, especially from emerging feedstock originating from wells drilled onshore.
economies. In recent years, Russian foreign policy has been viewed Western Europe will represent 6% of total global capex. Expendi-
increasingly with unease, prompting calls to reduced dependence ture in the region is entirely associated with import facilities.
on Russian gas. A renewed drive for cleaner energy will see coun- Over the forecast period, a stormy ride is expected for the LNG
tries such as South Africa, which currently generates 90% of its en- industry, as the fall in natural gas prices limits investment in capi-

Over the long term, massive gas reserves discovered in

remote regions such as the East African basin will continue
to make the case for FLNG as development solutions.
ergy through the burning of coal, look to transition to the use of gas. tal intensive liquefaction projects. Furthermore, the success of the
As a result, more than 14 countries are expected to have their first pioneering projects will serve as a yardstick for stakeholders con-
floating import vessels installed over the forecast period, improving fidence. Douglas-Westwood expects a pause in investment and the
gas supply. A total of $16.9 billion is forecast to be spent on import sanctioning of FLNG projects due to the market downturn. How-
facilities over the 2016-2022 period, with 2017 representing a peak ever, Eni is set to sanction the Coral project once considerable cost
year in expenditure. Asia will be the largest region in terms of capex savings for the project have been secured. FID is expected in early
for import vessels, with countries such as India and Indonesia lead- 2017. Project financing is expected to become easier in the long
ing unit installations during the 2016-2022 period, as they look to term as a track record for the technology is established; a lease and
strengthen their energy sectors by relying more on LNG imports operate model may evolve for medium and smaller deployments.
due to the shortage of local gas supplies. This will be a landmark year for the industry, as the PFLNG Satu
enters commercial production.
Regional overview Despite near-term concerns, spend on import facilities is forecast
Africa will account for the highest spend on FLNG units. Capital-inten- to sustain expenditure over the forecast period. The need to switch
sive liquefaction vessels such as Enis Coral development, Ophir Ener- to cleaner sources of energy and diversify gas supply is expected to
gys Fortuna FLNG and Perencos GoFLNG will drive expenditure over prompt an increase in import units over the forecast period.
the forecast period. Furthermore, import facilities such as Golar Tundra Aside from escalating gas demand, other key factors driving
(Ghana), Ain Sokhna FSRU III (Egypt), and Saldanha Bay FSRU are FLNG demand include technological advancement, monetization of
also expected to contribute to total expenditure. The region is forecast to stranded gas reserves, rising costs for the development of onshore
account for 35% of global FLNG spend over the 2016-2022 period. terminals, shorter lead times, relocation flexibility, and lower space
Over the next seven years, Asia will be a key area for both floating requirements. In the decades ahead, natural gas will continue to
liquefaction and regasification vessels. The region is forecast to ac- play an increasingly important role in meeting the worlds energy
count for 20% of global expenditure. Liquefaction units expected to be demand. Over the long term, massive gas reserves discovered in
installed in the region include Petronas PFLNG Satu and the Rotan remote regions such as the East African basin will continue to make
FLNG (PFLNG 2). Regasification units expected to be installed in the the case for FLNG as development solutions.
region in the near term include Central Java FSRU (Indonesia), Chit-
tagong FSRU (Bangladesh), Andhra Pradesh FSRU, and Digha FSRU
both expected to be moored offshore India. The author
Australasia will account for the second largest proportion of glob- Mark Adeosun is the author of the World FLNG Market Forecast 2016-2022. Since
joining Douglas-Westwood in 2013, Adeosun has authored a number of offshore
al FLNG capex at 22%. All of this is related to liquefaction projects
industry market forecasts and has also conducted high-level research into various oil
(including the completion and installation of Prelude FLNG in 2018). and gas projects, with a focus on offshore drilling, deepwater activities, and LNG.
A sustained recovery in the oil price environment will provide an up- He has undertaken market modeling and analysis, focusing on offshore markets and
side for the region up to five liquefaction units could be sanctioned E&P activities. Adeosun has a BSc degree in Geology and a Masters degree from the
if market conditions improve. University of South Wales in Geographic Information Systems.

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 P R O D U C T I O N O P E R AT I O N S

New communications systems

enhance safety, productivity
Rolf Berge cation, it is easier for the operator to under-
Harris CapRock stand the cost savings that can be realized
by investing in updated communications

T
technology. Since rigs may only be active for
he need for innovation continues to a few years before decommissioning and re-
grow as revenue decreases within the commissioning, the need for updated com-
This image shows the full-scale view of an FPSO
oil and gas industry. Companies that munications is often pushed aside to make from above. These assets are located near a plat-
once thrived in the relatively conser- way for other costs. With the extended form and are where oil is processed and stored
vative market are now being forced to lifespan of an FPSO, communication and the until it can be offloaded to a tanker for transport.
update software and technology to keep up ability to pass along big data become a vi- (All images courtesy Harris CapRock)
with competitors. tal part of daily operations, making it easier
With the move toward technological in- and more cost-efficient to invest in updated monitoring off-vessel and reduce the number
novation, IT resources and service needs communication technology. Due to this, the of crew members needed for those operations.
are forecast to continue to rise despite an oil industry is seeing an upward trend in terms Adding automation not only enhances pre-
market slump. In the US, more than 30 to 50 of both reliability and bandwidth needs. dictability, but is also another way companies
thousand annual wells have been drilled on- can increase safety and reduce the number of
shore in recent years, which is allowing for Technological improvements crew members needed on the vessel saving
more innovation and experimentation, some New technology, coupled with additional the company around a million dollars a year
of which is being adapted offshore. bandwidth, will be used to improve crew per person that can be removed.
At the same time, the industry is experienc- morale, operational efficiency, and real-time Simultaneously, the layoffs that have oc-
ing a generational change as more and more data gathering and monitoring. In addition, curred recently have increased the need
oilfield veterans move into retirement. This upgrades in communication reliability will to retain the industrys more experienced
change in decision makers and need for in- boost crew safety and reduce costs. workers. Which is where maintaining crew
novation is making the industry less conserva- welfare and morale becomes essential.
tive and is forcing companies to look for new Operational efficiency
ways to do business which directly corre- Productivity and operational efficiency go Crew welfare
lates to an increase in communication needs. hand-in-hand. By investing in communica- Technological improvements in commu-
For example, FPSOs have been employed tion technology, operators are keeping up nication on FPSOs will not only impact the
for several decades and, as a result, require a with the drive toward big data and automa- overall safety, but also the morale of crew
large investment in remote communications. tion. Even with the downturn, product lines members on these vessels by increasing con-
As the industry makes way for a new genera- that incorporate automation have experi- nectivity. In this digital age, more people ex-
tion of digitally savvy decision makers, com- enced a 40% growth, while every other prod- pect to be able to connect to their friends and
munication, collaboration, and connectivity uct line has dropped. family, no matter the time or place. Previously,
are key to success for FPSOs when transfer- Enhancing connectivity and communication this was a difficult situation to manage for op-
ring big data across limited bandwidth and provides FPSOs the ability to transmit large erators, as FPSOs are constantly moving with
maintaining an experienced workforce. caches of data across bandwidth and in turn, the tide and may not necessarily be within a
increases productivity, operational efficiency, given network depending on location. With
Connectivity on the move and crew welfare, as they are able to push data advances in communication technologies, op-
While FPSOs tend to be less mobile erators are able to provide this must-have
than traditional deepwater vessels, they connectivity and in turn are able to retain
are not considered stationary elements experienced employees, as well as attract
as with land-based operations. Though new generations of workers.
they may remain relatively stationary in
their location, these vessels are subject to Case study
severe weather. They swing to move with Recently, a major worldwide FPSO
the wind and tide, and thus experience vessel operator approached Harris
quite a bit of pitch and roll in the ocean. CapRock for help in improving the effi-
Unlike mobile offshore drilling rigs, a ciency of its operations. At the time, the
deepwater production platform, such as operator was facing three major issues:
an FPSO, is in place for decades, which
typically results in greater investments Satellite antenna radomes at the front of
in communications. an FPSO. The antennas are located inside
Because of the extended length of the structure to protect them from the
time an FPSO is placed in a specific lo- elements.

48 Offshore October 2016 www.offshore-mag.com

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 P R O D U C T I O N O P E R AT I O N S

Inconsistent bandwidth use. The operator contended network). This also provides bursting minimizing the number of onboard crew and
frequently noticed inconsistent bandwidth capability so if there is unused bandwidth avail- allowing fewer employees to complete the
usage. At times they would pay for band- able on the network, it can be used to temporar- necessary tasks.
width that they did not end up using, and ily boost performance. The offshore oil and gas industry is increas-
other times they would not have enough. Additionally, Harris CapRock worked with ingly moving toward remote communications,
Crew bandwidth prioritization. The crew the FPSO operator to set up Quality of Service and FPSO operators have been able to show
on the vessel was regularly using more band- (QoS) policies. These affect a networks ability leadership on this front that puts them ahead
width than planned, and they had no way of to achieve maximum bandwidth and deal with in the market. The latest communications
adjusting availability based on priority. network performance elements like latency, technologies are enabling them to increase
Analytic needs vs. budget restrictions. As the error rate, and uptime. QoS policies are a set productivity and reliability by achieving better
need for analytics grew and budgets tight- of rules that give prioritization to important communications, better connectivity, and bet-
ened, they struggled to effectively manage traffic over less critical traffic. An effective ter collaboration.
and process information from injection lines, QoS policy lets users give priority to specific
existing well centers, drilling platforms, and
visiting tankers. They quickly realized that
applications; prevents bandwidth hogging;
and helps manage network bottlenecks.
The author
Rolf Berge is Chief Technology Officer,
there was too much information to process These policies enabled the operator to pri- Harris CapRock. In that role, he oversees
and not enough crew to effectively monitor it. oritize bandwidth based on need. For instance, the overall technology strategy to ensure
To resolve these issues, Harris CapRock im- if an important video conference with manage- alignment with the companys product
plemented an uncontended Time Division Mul- ment was required, the bandwidth could be and service portfolio as well as with
tiple Access (TDMA) network. Most TDMA net- allocated to prioritize that meeting over crew its global satellite, wireless, and terrestrial network
works are contended, but this type of network internet access. The same could be applied infrastructure. Berge plays a key role in the selection of
allows a number of installations to access a single in the opposite direction. If there was rough technology and solutions to ensure highly performing
networks. Prior to this, he held various positions with Sch-
pool of bandwidth. This causes performance weather that might concern families of the
lumberger in operational and technology leadership roles
to slow to unacceptable levels, and therefore crew, more bandwidth could be allocated to prior to joining Harris Corporation in 2011. While with
makes this style of network an unsuitable choice. allow the crew to contact and reassure family. Schlumberger, he had responsibility for global network
With the uncontended TDMA network, there is In addition to the change in network, the engineering and the real time infrastructure. Berge holds
enough bandwidth allocated so that every user majority of the monitoring and analytic du- a bachelors degree in electronics and telecommunications
receives their committed amount of bandwidth ties were moved onshore to a central loca- from the University of Strathclyde, Glasgow, UK. He has
with no chance of it being unavailable (as with a tion. This improved safety and efficiency by over 25 years of experience in the industry.

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 P R O D U C T I O N O P E R AT I O N S

Recent storm modeling data can improve

offshore engineering design
Greg Holland increases in the maximum damage potential for distinct locations in
National Center for Atmospheric Research the North Atlantic and the Gulf of Mexico. They also find substantial
decadal variation superimposed on the longer-term signal.
Roy Long This three-year project proceeded in three phases, each phase
National Energy Technology Laboratory, lasting one year. This report summarizes the major accomplish-
US Department of Energy ments of Phase 3. The prime contractor, the University Corporation
for Atmospheric Research (UCAR), manages the NCAR on behalf of

A
the National Science Foundation to address pressing scientific and
recent research project carried out by the National Center societal needs involving Earth-system science.
for Atmospheric Research (NCAR) under the Research Part-
nership to Secure Energy for America (RPSEA) program, Project overview
with financial support from the National Energy Technology According to recent assessments, hurricane intensity is likely to
Laboratory, a division of the US Department of Energy, gen- increase in the future. Specifically, global average hurricane wind
erated a combination of observational analysis and statistical and dy- speeds are expected to increase, along with the proportion of ma-
namical modeling that produced new views of tropical cyclone activ- jor hurricanes. If true, this will have far reaching impacts on the
ity in current and future climates. For tropical cyclone frequency, a offshore oil and gas industry. It also raises the possibility that new
new statistical downscaling tool applied to a climate model ensemble coastal and offshore facilities are being under-designed, and that
projects a future increase over the North Atlantic. older facilities may need hardening in order to maintain presently
However, for the sub-region of the Gulf of Mexico, a dynamic accepted risk levels. This project provided new credible projections
model ensemble projects a future decrease in hurricane frequency. of changes in hurricane activity and industry impacts in the Gulf of
The latest science therefore shows low confidence in changes in Mexico that have the potential to mitigate costs and minimize envi-
tropical cyclone frequency for the Gulf of Mexico. However, there ronmental and safety risks.
is higher confidence on changes to tropical cyclone intensity. For This study follows a prior RPSEA project on the effects of climate
tropical cyclone intensity, a new statistical-dynamical tool shows a variability and change in hurricane activity in the North Atlantic. The
future increase in the proportion of major hurricanes for the North results of this prior work contributed to ongoing debate in the scientific
Atlantic. Observational analysis indicates this change has already community on the expected future change in North Atlantic tropical
started on global scales. cyclone frequency. Some studies suggest a future increase while oth-
The inclusion of tropical cyclone parameters of size and translation ers suggest a future decrease. This project aimed to quantify future
speed, in addition to wind speed and frequency, allows cyclone dam- changes in the frequency, duration, and intensity of Gulf hurricanes
age potential (CDP) assessments that are more relevant to industry and their impacts using a powerful combination of the latest theoretical,
impacts. The plausible future scenario of increased wind speed and statistical, and enhanced dynamic modeling capability. Next generation
decreased size applied to historical Gulf of Mexico hurricanes leads atmosphere-ocean coupled, multi-scale modeling systems were con-
to overall future increases in the extremes of metocean variables, with figured together with the statistics of extremes specifically to provide
the biggest proportional increase in the significant wave height. In projections of hurricane characteristics critical to engineering design,
agreement, the CDP applied to a dynamic model ensemble projects fu- production efficiency, safety, and environmental protection for the off-
shore oil and gas industry. Confidence levels in the
results were established using multiple indepen-
dent techniques, advanced statistics, and targeted
sensitivity analysis.
The major accomplishments of Phase 1 included:
A tool to explore empirical relationships be-
tween hurricanes and their environment
Extreme value assessments of future changes
in the exceedance probability of major hurri-
Average cyclone canes
damage potential for Evidence for a saturation in the proportion of major hurricanes, with
(top left) simulated further warming potentially seeing no further increase in the pro-
current climate, (top portion of major hurricanes
right) simulated future Cyclone damage potential forecasts made in real-time for Isaac and
climate representative Sandy (2012), and used by the reinsurance industry to assess poten-
of the 2050s, and (bot-
tial damages in advance of landfall.
tom) the future change
(future current).
The major accomplishments of Phase 2 included:
Combined decision tool development with statistical downscal-
ture ing techniques

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 P R O D U C T I O N O P E R AT I O N S

Credible bounds on annual North ducing higher levels of activity than in

Atlantic tropical cyclone frequency the historical record and some members
and general locations of tropical cy- producing no hurricane activity. NCAR
clone activity in current climate es- selected three members based on the
tablished. simulated hurricane activity and other
Wind-wave-current simulations of regional climate attributes, to span the
historical hurricane cases under cur- physically plausible range rather than se-
rent conditions and future scenarios lecting three members that were similar
Proven regional modeling capacity to each other.
with the new NCAR model for predic- The three-member future climate en-
tion across scales (MPAS). semble was created using a single, bias-
corrected global climate model projec-
Establishing confidence tion to drive the high-resolution regional
in hurricane projections model. The ensemble was run for five
Sensitivity studies have been conducted time periods: one current climate decade
to explore levels of confidence in todays (1990-2000) and four future climate de-
hurricanes and uncertainty in the future cades (2020-2030, 2030-2040, 2050-2060,
change in hurricanes, and relationships and 2080-2090). The graph shows the
between the two. A 24-member dynamic future predicted number of tropical cy-
model ensemble simulation of current cli- Simulated numbers of GoM tropical cyclones per decade clones per decade in the Gulf of Mexico.
by the three ensemble members. Part of this research was
mate hurricane activity was generated to supported by DNV and Willis Re. Two ensemble members predict a future
assess the range of hurricane activity pos- decrease in numbers of Gulf of Mexico
sible under current climate conditions, by expanding the historical tropical cyclones, the other is ambivalent. On average (dashed line),
record. Each ensemble member differs by a slightly different repre- the three indicate a slight decrease.
sentation of physical processes, such as radiation, microphysics, sur-
face boundary layer, and deep convection. The following goal is then Future cyclone damage potential
to assess a credible range in the future change of hurricane activity. The 24-member dynamical model current climate ensemble and
The problem is illustrated in the following which shows the CDP three-member future climate ensemble described above were ana-
applied to a single simulation of current climate and a single simula- lyzed for the spread in the CDP for current and future climate. The
tion of future climate. The CDP assesses the damage potential of following shows the geographic distribution of the future change
tropical cyclones using the key damaging tropical cyclone param- (compared to current climate) in the maximum CDP for one exam-
eters of intensity, size, and translational speed. The CDP represents ple ensemble member. This shows the impact of decadal variabil-
offshore wind, wave, and current damage and onshore wind and ity. The other two ensemble members also predict future increases
coastal surge damage. This shows a future reduction in damage po- in the maximum CDP everywhere there are sufficient data (not
tential in the Gulf of Mexico. The goal of this task, then, is to assign shown). The magnitude of the change, however, varies spatially
a level of confidence in this predicted reduction of damage potential. among the ensemble members. Future changes in the average CDP,
The current climate ensemble was analyzed for tropical cyclone however, can be positive or negative and the spatial pattern of the
activity with emphasis on the Gulf of Mexico. Results showed a large change varies between ensemble members.
spread in hurricane activity in the GoM with some members pro-
Conclusion
The inclusion of tropical cyclone parameters in addition to wind
speed and frequency allows assessments that are more relevant to
industry impacts. The plausible future scenario of increased wind
speed and decreased size applied to historical Gulf of Mexico hur-
ricanes leads to overall future increases in the extremes of metocean
variables, with the biggest proportional increase in the significant
wave height. In agreement, a CDP index (that accounts for the key
damaging tropical cyclone parameters of intensity, size, and forward
speed) applied to a dynamical model ensemble projects future in-
creases in the maximum damage potential across well-defined zones
for the North Atlantic and the Gulf of Mexico. The CDP also is likely
to undergo significant decadal variability
Based on these new views of hurricane activity and potential im-
pacts, NCARs overall recommendation is for the industry to be aware
of the potential for increased hurricane impacts in the future and the
areas where these may occur. As understanding of hurricane activity
in current climate and the future change advances the potential indus-
try impacts will be regularly reassessed. Moreover, NCAR suggests
sustained industry-research collaboration will further understanding
of how the project results can be integrated with industry planning
and engineering design. A new center, the Capacity Center for Cli-
Change (compared to current climate) in the maximum CDP for one example mate and Weather Extremes (C3WE), has grown out of interactions
ensemble member. The CDP scale ranges from 0-10. Part of this research between NCAR, RPSEA and others, and provides a vehicle for such
was supported by DNV and Willis Re. sustained collaboration.

www.offshore-mag.com October 2016 Offshore 51

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 SUBSEA

Here, 2-in. dual coiled tub-

ing units are shown ready for
deployment through the vessels
moonpool. (All images courtesy
Oceaneering International, Inc.)

Rigless stimulation saves

GoM operator $15 million
Justin Pizzitola
Production rates improve 50% in some cases Oceaneering International, Inc.

D
eepwater operators can have more flexibility in subsea well approach, the vessel carries two work-class remotely operated ve-
interventions by employing a stimulation method that does hicles (ROV) and is fitted with a crane to lower equipment to the
not require a drilling rig and conventional riser. This approach seafloor. The rigless intervention process is performed using both
includes the use of a multi-purpose service vessel (MSV), dual ROVs, dual open water coiled tubing riser units, flying leads, high-
open water coiled tubing riser units, and a well stimulation tool pressure pumps, and associated piping. In addition, a WST provides
(WST) for access into a reservoir. the main interface between the topsides and the well tree. Rig-up
Presented here are factors that operators should consider when and testing can be completed in two days, compared to a week or
planning an intervention using this method. Also, the importance more for rig-based well intervention.
of planning and project management is emphasized in order to per- In addition to the ROVs and other equipment, the MSV can carry
form rigless interventions safely and successfully. up to 5,000 bbl of pre-mixed treatment chemicals. If a larger volume
is required, bulk chemicals can be mixed on the fly, or a stimulation
Rig operations vessel can be used for the high- or low-pressure transfer of fluids to
Production from subsea wells can be impaired over time by fines eliminate additional trips to shore.
migration from materials including paraffins, asphaltenes, and scale. The MSV stimulation method can treat wells at pumping rates
These problems can occur even in wells that have permanent sys- up to 20 bpm and 15,000 psi using dual open water coiled tubing
tems to inject chemicals to control particles and deposits. At some riser units and a WST, which assures safe operation by providing a
point, intervention is usually required to restore production, typi- double barrier for well control. Two fail-close valves can be actu-
cally by pumping treatment chemicals into the well. ated from the surface and automatically closed if unexpected events
The most common method for subsea well intervention involves are occur/transpire. An emergency quick disconnect system (EQD)
using a mobile offshore drilling unit and a stimulation vessel, along enables the vessel to disengage from the well with zero leakage in
with a drilling riser and blowout preventer (BOP) placed on top of the event of mechanical problems or loss of vessel dynamic position-
the wellhead. Because of the major assets required, the large crews ing control. An additional EQD system is installed between the MSV
needed for the operation, and the time-consuming operations of rig- and stimulation vessel when operating in a dual-vessel configuration.
up and rig-down, a single well deepwater intervention can take a Additionally, the subsea tree is powered and controlled from the
week or longer to complete. vessel through an umbilical instead of relying on the host facility.
Oceaneering has developed a method to restore production with- While the stimulation is performed, real-time data including top-
in a significantly reduced amount of time, with simpler logistics, and sides pump pressures and flows, and subsea pressures at the tree
without compromising safety or well control. interface, plus video from ROVs, can be delivered back to shore.

Rigless intervention Factors for consideration

This alternative intervention method uses an MSV to safely per- Operating company production engineers should consider sever-
form well stimulations without a drilling rig, riser, or BOP. With this al factors when planning a subsea intervention using an MSV. First,

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Another operator in the Gulf of Mexico de-

termined that production from two wells in
4,300 ft (1,310 m) of water had been impaired
due to particle accumulation. Production en-
gineers decided that each well needed a treat-
ment schedule that had to be pumped within a
15-hour time window. In addition, the volumes
required would exceed the MSVs capacity us-
ing pre-mixed chemicals.
After detailed planning, the project team
designed a treatment that would enable bulk
chemicals to be mixed on the fly and injected
into the wells from the MSV. Using this ap-
proach, pre-mixed chemical volumes stored
on the vessel could be reduced significantly,
Above: An ROV preps the WST and subsea tree enabling a single vessel to carry out the
for a well stimulation. Right: Oceaneerings dual stimulation.
coiled tubing units hooked into the WST for The project was scheduled during winter
a stimulation through a choke interface. in potentially difficult weather. An operability
matrix was prepared with close attention to
produced fluids should be analyzed to deter- weather, current, and sea states to allow for
mine the cause of the blockage and choose a 24-hour pumping window to meet the re-
the appropriate treatment chemicals. Reser- quired 12-15 hour pumping schedule.
voir characteristics should also be reviewed The MSV was mobilized with nitrogen,
to characterize the formations injectivity and determine optimum nitrogen pumps, dual open water coiled tubing riser units, mixing
pumping rates. units, metering equipment, and 2,500 bbl of bulk chemicals. All
Also, operators need to determine the best method to access the treatment fluids were mixed on the fly and pumped according to
wellbore for the intervention. There are several options for landing schedule, and each well was stimulated successfully.
out the WST for wellbore access, including latching onto the tree hub
directly, locking onto a nearby suction pile, or deploying the WST West Africa project
with its own mud mat. For vertical trees, the WST can be latched to Offshore West Africa, an operator planned to stimulate five wells
the tree hub and gain through bore access to the wellbore. Wellbore in 4,420 ft (1,347 m) of water, whose production had dropped be-
access can be obtained using flying leads from the WST over to a cause of the accumulation of fines, calcium carbonate, and scale.
choke insert equipped with a high-flow access point for the other land To cost-effectively stimulate the five wells 60 mi (97 km) offshore,
out methods. Oceaneering designed a dual-vessel plan to be implemented using an
Effective project management is critical to integrating all tech- MSV and a stimulation vessel. The MSV deployed four open water
nologies, and both in-house and third-party services are needed to coiled tubing units, two work-class ROVs, and a modified WST. The
perform subsea well stimulation. Detailed planning includes devel- stimulation vessel carried the needed treatment fluid volume and
oping a robust front-end engineering and design study, a detailed provided pumping services. During well intervention, this vessel
safety plan including HazIDs, and an operability matrix to integrate pumped chemicals through a high-pressure hose to the MSV, down
operations for each project and assure continuous pumping while to the WST, and into the wellhead.
anticipating weather and ocean conditions. To assure safe spacing between the MSV and the stimulation ves-
sel, transponder frequencies for the dynamic positioning systems on
GoM projects the two vessels and other vessels close to the operation were man-
A subsea well in the Gulf of Mexicos Mississippi Canyon area aged by the field mooring master. In addition, the MSV used a long
experienced a significant drop in production due to fines migration, baseline acoustic array to maintain its position in relation to the sub-
which caused formation impairment. The operator decided that an sea assets, and the stimulation vessel employed a fan beam configura-
acid stimulation was needed to restore production. tion to to maintain an adequate distance from the MSV.
Oceaneering proposed a rigless operation using a WST to bull- To achieve the maximum required pumping rate of 16 bpm, the
head the planned chemical treatment into the well and the reservoir WST was modified to accommodate four open water coiled tubing
at 11,000 psi. An MSV equipped with skid-based stimulation pumps riser units. This change doubled the achievable flow rates, enabling
and carrying tanks above and below deck, transporting acid, sol- optimal treatment for each wells unique characteristics. To prevent
vents, and nitrogen carried out the intervention. In addition to the leaks and avoid safety or environmental impacts, coiled tubing con-
WST, equipment included dual open water coiled tubing riser units, nections to the WST were made using proprietary ejectable hot
nitrogen pumps, a 10,000 psi tree running tool with adapter, and a stabs, which also reduced tool costs and simplified ROV operations.
neutralization tank with gas buster. The dual-vessel approach successfully injected an average of
The company also contracted and managed all third-party suppli- 1,370 bbl of treatment chemicals into each of the five wells, achiev-
ers, working with DNV GL USA to obtain approval for the fire and ing impressive gains in production. The average well experienced a
safety plan, piping and instrumentation, and chemical carrying and 350% surge in its productivity index and a production rate increase
handling procedures. of more than 70%.
The rigless stimulation pumped 1,100 bbl of acid into the well dur- Since 2007, the rigless approach to subsea well stimulations has
ing three days of pumping. The operation was completed for $15 been used on more than 30 deepwater interventions, improving pro-
million less than a rig-based stimulation, and the wells productivity duction by an average of more than 50%. Additional deepwater rigless
improved by 75%. stimulation projects are scheduled through the end of the year.

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 SUBSEA

Subsea well asset

management comes of age
New technologies will be key for future operations

S
ubsea well operations are at once an Colin Johnston One of the key operations, which in hind-
established form of asset support as SeaNation LLC sight was the spark for subsea well opera-
well as a developing technology and tions in the GoM, was a decommissioning
service line. Key challenges in this project rather than a production-related in-
niche are, like most oilfield opera- tervention project. A floating platform and
tions in the current environment, rooted in multi-well field at the end of life used the
economics. Well management for subsea as- A great bookend to this story is that the modified dive support vessel, Uncle John,
sets performed by dedicated vessels are in- Seawell now has a new lease on life. After equipped with a 150-metric ton (165-ton)
creasingly claiming greater efficiency than undergoing a major upgrade, and equipped derrick to perform, via an intervention riser
drilling rigs for well intervention operations. with a new subsea lubricator system, it is ex- system, the well abandonment activity and
Those same vessels, however, routinely pected to continue supporting subsea well subsequent clearance of the field in 1998.
operate at a discount to drilling rigs, and this assets in the North Sea for years to come. As Cal Dive, later to become part of Helix, saw
raises several questions: Why, when some- a testimony to both the entrepreneurial ap- the benefits of such operations and, on the
thing offers to be quicker and more efficient, proach to the burgeoning North Sea subsea back of the success of this work, kicked
is it not possible to charge a premium? Addi- industry and the enduring success of subsea off the design and build of the Q4000. The
tionally, why would an operator still choose specialist services, the Seawell is undergo- subsea well operations marketplace as we
a drilling rig over a purpose-built vessel for ing a late life resurgence. recognize it today had finally begun, some
subsea well asset management? Looking to Away from the North Sea, the Gulf of 10 years after the Seawell had made the first
the future, how can specialist vessels, new Mexico deepwater development pace picked steps into this environment.
intervention systems, and established drill- up in the early to mid-1990s, some years after
ing rigs better supply what is needed for the the Seawell had commenced operations, and Current environment
expected increasing intensity of subsea well in water depths only previously encountered With the history lesson over, lets look at
operations and asset management? in Brazil. The Brazilian market had taken the the current and future market and how best
These questions will be addressed here, lead in deepwater developments and sub- to address the needs and requirements of op-
along with some guidance on how best to ap- sea well operations. Custom-designed field erators, service companies, vessel owners and
proach subsea well management. hardware, including completion/workover technology providers. In context, the closest
riser systems, was deployed from drilling analogy, and in fact the forerunner of subsea
Historical perspective rigs. Eventually, the subsea well numbers well operations is the drilling operations envi-
Firstly, to place the subsea well opera- and overall operational demand justified ronment. The two basic approaches are: com-
tions niche in context, a quick historical dedicated and modified semisubmersible parison between subsea well operations and
perspective is offered. The original Stena vessels of which the Amethyst was proving drilling operations; and since drilling rigs can
Seawell, now a Helix Well Ops vessel, was most adept for subsea well operations. This conduct subsea well operations, comparison
the kickoff for the non-rig based subsea well has continued to be the approach in Brazil between subsea well operations and drilling
intervention industry. In 1989, the Seawell until recently with the impending delivery of rigs in subsea well operations mode.
was equipped with a Camco subsea lubrica- three dedicated vessels, two monohull and The drilling rig role in subsea well opera-
tor and commenced operations in the North one semisubmersible design, reflecting the tions is two-fold: first as a means of running
Sea assisting with subsea well intervention focus and need for specific subsea well op- the completion and workover riser system
requirements. erations. for original vertical tree completion and
Similar to today, in a market of post-boom The scale of activity and subsequent de- installation operations; and secondly, with
conditions awaiting a return to viable oil mand in the Gulf of Mexico saw key subsea the advent of horizontal trees, for running a
prices, the Seawell struggled for acceptance knowledge transferred in from the North subsea test tree to access the tubing hanger,
and supplemented operations with construc- Sea. The GoM deepwater challenge was tak- again as part of the subsea completion op-
tion activity. What became apparent, however, en up by drilling contractors and addressed erations. Both methods of operation can
was the appeal of campaign-based operations, through newer build rigs and improved be applied for production related interven-
shared mob/demob, and reliability of repeat DP-based capability enabling operations in tion operations and in this mode a drilling
operations. Eventually established as a trusted areas that were previously out of mooring rig is fully capable of carrying out the full
means of re-entering subsea wells, particu- depth. The subsea well intervention re- functional role for all subsea well operations
larly during weather conditions that prevented quirements were further down the project requirements.
drilling rig operations, the Seawell unencum- path since they were considered a mid-life The role of dedicated vessels and vessels
bered with riser operations had cornered requirement for subsea field operations for of opportunity is in relation to deployment of
and established a new niche market. the most part. stand-alone systems, which both replicated

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 SUBSEA

Comparison of drilling vessels and intervention vessels and access methods. be acceptable well access operations, it should
be noted that there are regional vagaries
which reflect the nature of specific offshore
and deepwater operating arenas. The North
Sea is the home of riserless activity as a func-
tion of relatively shallow water depth; tough
operating conditions in the winter months;
and smaller, older subsea well infrastructure
with less tangible issues such as wellhead fa-
tigue impacting what type of operation can be
carried out.
The Gulf of Mexico, on the other hand,
has been the preserve of riser-based inter-
vention operations. Historically, the Uncle
John and the Q4000, as the initial vessels in
the Gulf, have both been riser-based vessels
and therefore dictated the market some-
what. But issues such as well access, due to
prevalence of horizontal trees, and concern
over plug pulling along with sand control is-
sues led to a preference for riser based ac-
cess over riserless operations.
In general, it can be stated that these
concerns are somewhat overblown, since
historically the ability to retrieve plugs from
horizontal trees has not been overly prob-
Image courtesy .... lematic. But the ready access to coiled tub-
ing (CT) during operations, as provided by
completion workover riser systems as well sels and systems has also increased given riser-based intervention, has been a boon in
as provided well access via subsea lubricator the subsea population growth, such that preventing the need to cease operations as a
systems. The Seawell, for example, operates business cases are justified. The general result of access/circulation capabilities.
typically in a subsea lubricator role, while rule of thumb, which varies across opera- The environment offshore Brazil, similar
the Q4000 or the Aker Seafarer operate in tors, is typically estimated at 12 days/well/ to the Gulf of Mexico in terms of benign
an intervention riser system mode. This year for intervention requirements, which is conditions, has historically been riser-based
constitutes the two main modes of dedicated itself driven by the overall subsea well age for subsea well access. There have been
subsea well operations methods: riserless or and population. instances of technology developments with
riser based. It should be noted that there has The requirement from operators to en- open water wireline access and also open
been one occasion of running a riserless sys- sure that drilling programs are not interrupt- water completion operations. For standard
tem from a semisubmersible vessel, in this ed by production-related issues for subsea subsea asset support operations, however,
case a drilling rig, but it is not a common oc- wells and the availability of long term con- riser-based operations remain the key.
currence currently. tracts from operators provides the incentive Three new vessels, all with riser-based inter-
The foundation for the niche operations for commitment to vessels and systems from vention systems, are due to operate in Brazil
of dedicated systems and vessels for subsea the major service providers in this niche. Of in a staggered deployment starting in 2016.
well access is a function of their efficiency. course, the current market environment has Handling and operations of unique field sup-
Drilling rigs, traditionally the workhorse for put the brakes on this approach and, simi- port equipment is one of the key customized
any form of offshore operations, are at their lar to the challenges of drilling contractors, aspects of those vessels for seabed pump-
most efficient when drilling an intermediate there is now an excess of dedicated vessels ing support and maintenance among other
hole as part of the well construction process. for subsea well operations. The excess cur- intervention and maintenance workscopes.
Prior to that, e.g. top hole drilling, and post- rently includes the drilling rigs themselves West Africa, another key operating area
intermediate operations (e.g. completion as they look to improve utilization by taking for subsea well operations, has seen both
activity and intervention), the drilling rig is on scopes of work, such as intervention, that riserless and riser-based operations. Angola
not operating at its most efficient level. This they would normally forgo in favor of longer- had the first long-term contract in place for
offers up opportunities, as a function of scale term, more lucrative, drilling contracts. a riser-based intervention vessel, but teeth-
of application, for very specific designed ac- Thus, the current marketplace is some- ing problems and operational issues led to
cess vessels and systems which can offer what crowded with options. But taking a the early termination of this contract and a
improved operational efficiency. look in detail at the methods employed for resumption of rig-based intervention. Else-
As the subsea population has increased subsea well operations should shed some where offshore West Africa, riserless opera-
with a peak in tree orders in 2013, it is es- light, and provide a path forwards for the tional campaigns have been conducted with
timated that almost 5,000 subsea wells will needs of both suppliers and end users. repeated success.
be older than five years by 2018, on a global
basis. Despite the slowdown in recent years, Regional operations Technology developments
the level of subsea tree orders is estimated As the subsea well operations arena has The maturing of the subsea well opera-
to remain robust over the coming years. matured so that both riserless and riser-based tions marketplace whether through vessels,
The potential utilization for dedicated ves- operations are considered, on a global basis, to systems, or more independently, downhole

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Historic and future subsea tree awards estimates Major orders for subsea trees, future estimates

Future tree awards (2016*-2020)

650 300
Brazil estimates
553 2016: 14
550
2017: 32
209
452 2018: 51 459 200
Tree awards

450 434 2019: 62

416 405
373 2020: 93
343 136 132
350 319 113
311
257 100 80 78
250 236 65
53 52 44
154
150 119
0
l l l il I
ra
s oi el BP ro
n
rk
o ta ob EN
e
50 b at Sh ev da To sid
ro St M d
07 08 9 10 11 12 13 014 015 16E 17E 18E 19E 20E t h n a on oo
20 20 200 20 20 20 20 2 2 20 20 Pe C A xx W
20 20 20 E
Source: Estimates from Quest Offshore Resources, Inc., May 2016 Source: Estimates from Quest Offshore Resources, Inc., May 2016

technology results in increased acceptance the use of a coiled tubing lift frame remained further enhances the preference for mono-
of, and reliance upon, this non-rig based ap- the mainstay, a legacy of conducting well in- hull design options along with a more off
proach for subsea assets, whether riser based tervention from drilling rigs, which was it- the shelf option from vessel designers and
or riserless. self a development from the early days of the associated shipyards for construction of a
Further, the development and acceptance North Sea operations. monohull vessel.
is still at a stage where this method of op- The Aker Seafarer, a monohull riser-based One continuing challenge is the level of
eration is considered an alternative choice vessel, is the first step change in improving equipment to be incorporated into any sub-
rather than a first choice. This is a key dif- handling and operations for subsea well op- sea well operations vessel. More capability
ferentiator in the process of technology mat- erations. Its deck-skidding systems elimi- leads to higher build cost but more versatil-
uration. The indication of maturity is when nate crane operations, apart from loading/ ity in the marketplace, with the challenge
the available methods for well intervention unloading equipment. being to maintain a cost and efficiency ad-
are selected automatically rather than the In addition, an active heave compensation vantage versus drilling rigs. If the options
result of constant comparison with drilling system that links personnel access to the are too close in capability, the drilling rig will
rigs. Key signals to look for as the market well service equipment enables compensat- win out due to being the established choice.
matures are developments such as using ed access to the upper riser, and eliminates
riserless methods regularly for diagnostic man riding requirements during operations. Subsea
operations as a pre-cursor to planning inter- Future vessels in the form of Helixs vessels The subsea aspect of both riser and ri-
vention campaigns from riser-based inter- for Brazil see this approach maintained with serless systems reflects the changing en-
vention vessels. significant lift frame structures incorporat- vironment of subsea asset development.
Additionally, the implementation of the ing a walk to work bridge system to pro- Increased requirements to meet regulatory
long awaited API 17G RP for intervention mote personnel access to the upper riser demands post-Macondo have an impact on
systems will see significant steps taken to- and well service equipment. It is likely that the well control aspect of systems configura-
ward standardization and therefore present this approach will be considered normal in tion. Increased operational demands in the
a clearer picture for manufacturers, service the future, in terms of minimizing the risk form of 15K and 20K pressure rating, along
providers, and end-users in terms of specific of how personnel interface with the equip- with increasing water depth requirements,
equipment details. It will also help opera- ment. Ultimately, developments to eliminate are all affecting the future design and build
tors and developers to readily compare one personnel access requirements entirely will of systems. Increasingly, the systems are be-
method of access with another. be part of the next generation of interven- ginning to fill a role as both dedicated, i.e.
tion vessels. permanently mounted with an intervention
Surface For vessel design preferences in general, vessel; and independent, i.e. available for
The vessels themselves are of course one the demand for semisubmersible-based de- deployment from intervention vessels and
critical piece of the overall supply system signs is likely to be replaced by the prefer- drilling rigs for maximum availability.
for subsea well operations. Developments ence for monohull designs. The development Future system designs and features will
in the vessel design and handling systems of the Uncle John, leading to the Q4000 and combine technology developments such
on board are helping to improve acceptance further development via the Q5000, the Etes- as smooth OD electric line that eases the
and increasing operational efficiency. The co IX/BT 4000, and the yet-to-be-delivered dynamic seal requirements and enables
North Sea/Gulf of Mexico differences in Q7000 all show the changing demands of the deeper water access. Variations in the hy-
approach saw, as described above, the Sea- operations with increasing automation, mini- draulic control systems with seabed mount-
well with guideline technology and com- mizing personnel interface, and elimination ed HPUs, improvements in acoustic-based
pensation systems to assist deployment and of crane operations as much as possible. operations, and increased ROV capability
operations. The initial vessels in the Gulf of The preference for lower build cost and will all impact how future systems are de-
Mexico saw the Uncle John with a passive improved time to delivery may see semisub- signed and operated with a view to reduced
compensation system usurped by the Q4000 mersible design being replaced by mono- equipment footprint. Such changes lead to
with an active heave system for deployment hull design for future intervention vessels. improved operations as a result of greater
and riser tension. But in terms of handling, Additionally, the advantage of transit speed flexibility and increased operability.

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Valve technology is continuously being Examples of development areas are im- order to secure access and improve oper-
developed, with innovations to conventional proved plug placement and improved plug ability via vessel flexibility such as interven-
ram technology seeing gate valve and ball materials as well as verification capabilities. tion vessels or drilling rigs.
valve technology applied for well control in The challenges in assessing the final well The efficiency of subsea well operations
the form of shearing and sealing capabilities condition to ensure acceptability for the ces- should continue to improve, based around
to meet demands. Anticipated changes from sation of operations requires multiple casing vessel design and surface equipment han-
API and ISO (as well as regulatory agencies) string visibility for cement bond logs. All of dling operations. The key to subsea well
are specific requirements covering repeated these development areas are being worked operations is the ability to rig up and rig
shearing and slurry flow resistance capabil- to deliver such capabilities. Upon accep- down as quickly as possible. In-hole opera-
ity, for example. Flexibility for inclusion of tance, increased utilization of vessels and tions are limited in their optimization as a
different technologies in different valve roles riser and riserless systems for full well P&A result of the vagaries of well issues and the
across extremes, such as safety head appli- will occur and corresponding decommis- operational program and operator-mandated
cations, as well as simple open-bore sealing sioning costs should reduce. procedures, for example. The efficiency of
capability, will continue to be developed and From a production perspective the require- mob/demob is a combination of maximum
incorporated into the subsea systems overall. ment for seabed based pumping capability is transit speed available coupled with im-
Key client demands currently include continuing to develop and along similar lines proved handling and optimum automation
the ability to enable full bore well access the accessibility of downhole pumping capa- of operations.
for decommissioning of subsea wells, which bility is a key development for improving sub- Current and future vessel designs are capi-
should see increased subsea equipment size sea asset production efficiencies. The ability talizing on this approach but the economic en-
from the current typical 7 in. up to 18-in., to change out downhole pumps via an inter- vironment is proving challenging for develop-
with associated equipment manipulation vention system and associated vessel would ments coming to fruition due to an oversupply
capability for handling of tubing hanger be a step change in applicable field operating of assets based upon current utilization.
during well plug and abandonment (P&A) costs when compared with current full work- A combination of efficiency of operations
operations. Such development may lead to over requirements. A combination of down- and contractual opportunities can be lever-
similar equipment with a different applica- hole pumping technology and associated aged to improve overall operations and proj-
tion. Accepted handling methods of tubing intervention system handling development ect cost. Application of modified lump sum
hanger and associated equipment may lead will provide the ability to reduce subsea well contracting applied to those operations in
to open water upper completion operations. enhanced production costs. full control of the service companies, e.g.
Such advancement would see greater utiliza- the rig up and rig down operations, com-
tion of intervention vessels and remove the Future opportunities bines minimum project risk exposure with
time consuming upper completion handling Contractual opportunities are currently maximum margin capitalization. Ultimately
from the drilling rig. Advantages would be based around either long-term commit- the holy grail would be, via full industry par-
reduced time pressure for operators to com- ments, campaign approach, or simple call ticipation, the ability to apply data analytics
plete and clean up the well for example. off. Long-term commitments are enabled across the board for subsea well operations.
Finally, one of the most keenly anticipated when operators have a sufficient subsea as- Such an opportunity would enable as-
developments is open water CT. Specifi- set base from which to justify vessel and sys- sessment of best-in-class operations as well
cally this refers to CT being deployed from tem utilization. Added to that is the availabil- as determination of key problem areas of
a vessel, without riser, and into the well for ity of intervention system access capability operations. The outcome would be in depth
intervention operations via a subsea injec- which can be valued as a function of subsea knowledge of the risk profile of a given sub-
tor head. The potential for this development asset production management. For a cam- sea well operation as a function of location,
would see increased watch circles during paign approach, the reduction in mob/de- water depth, tree type, pressure regime and
operations, and therefore less weather-re- mob is attractive for a fixed scope along with in-hole scope of work. Consequently, the
lated downtime; as well as the possibility of the benefits of repeat operations in a batch ability to provide a lump sum approach for
conducting CT operations from smaller in- form and the efficiencies that are delivered. low risk profile operations could be within
tervention vessels, since there would be no Finally, call off work is generally the area reach. Such an outcome would shift the ac-
requirement for a riser during standard op- where efficiency gains are capitialized the ceptance of subsea well operations up the
erations. Vessel handling systems and hook least and costs reflect one-time mob/demob maturity curve to one of standard practice,
load capabilities would be reduced. Island costs. The optimum compromise is a combina- particularly for the applications discussed
Offshore, Baker Hughes, and BlueOcean tion of pre-planning for anticipated subsea well above.
are some of the existing providers looking requirements and improved assessment of the The future for subsea well operations is
at development of this technology. application of vessels and systems across the robust based upon the increasing age and
asset base. For example, field development number of global subsea wells. Develop-
Subsurface requirements in the form of top hole drilling, ment of key technologies such as open water
Downhole technologies are one of the ar- subsea construction activities including tree coiled tubing and through tubing pumping
eas that are not necessarily unique to subsea installation. Once on production, the opera- offer methods for both increased application
well operations. Once below the wellhead tions requirements are broad in the form of as well as reducing subsea asset operating
the requirements of in-well technology is subsea stimulation and intervention as well as costs. The key for future benefits for all in-
generally the same whether for subsea wells late life issues such as well decommissioning volved is relentless pursuit of efficiency,
or platform wells. The key area of develop- and infrastructure removal. coupled with project cost, rather than fo-
ment however is in the decommissioning This life-of-field approach is key to opti- cusing on day rate comparison. Improved
applications. Here improved downhole tech- mum utilization of vessels and systems. It operational management will see this come
niques can enable full well P&A activities can be supplemented through asset owner- to the fore, and subsea well operations will
from well intervention vessels and systems ship such as intervention systems either become a routine method for owners of sub-
without the need for drilling rig operations. individually or collectively by operators in sea assets for years to come.

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 FLOWLINES AND PIPELINES

Field development vessel rises to task

of challenging deepwater project
Saipem FDS2 achieves two new world records offshore Brazil
P.E. dHuart
C. Chiodini
Saipem

S
aipems field development and pipelay vessel FDS2 has set
two world records while undertaking work on Petrobras
Cabinasproject offshore Brazil. The project involved instal-
lation of a 380-km (236-mi), 24-in. gas export pipeline in water
depths down to 2,250 m (7,381 ft).
In the space of just a few months, the Saipem FDS2 set two re-
cords in a row: the vertical pipe laying tension world record; and
the installation of the largest, deepest, and heaviest free standing
hybrid riser.
The first of the two records on which this article will focus was
set in December 2014 on the Rota Cabinas contract, awarded by
Petrobras to Saipem. For this project, the FDS2 laid the deepest sec-
tion of a 24-in. pipeline in the Santos basin, which had a wall thick-
ness ranging from 1.25-in. to 1.438-in. at water depths from 1,700 m Above: The Saipem FDS2 set two world records on Petrobras Cabi-
nasproject. Below: PLET being assembled on the FDS2 handling system.
to 2,240 m (5,577 ft to 7,349 ft).
(All images courtesy Saipem)
A specific ultra-high-tension j-lay configuration was planned, en-
gineered, and implemented for the purpose of maximizing vessel
operability in harsh environmental conditions. This plan was made
possible by the FDS2s tension capabilities, which allowed the plan-
ning of laying operations even in flooded configuration. The maxi-
mum tension recorded on the project of 760 metric tons (mT) (837
tons) which to date represents a vertical pipe laying tension world
record was nonetheless well within the FDS2s maximum laying
capacity of 1,500 mT (1,653 t) and contingency holding capacity of
2,000 mT (2,204 t), both in friction. The vessels j-lay tower was also
used to lay five in-line-items and the pipe end assembly safely and
efficiently.

Cabinasproject
Rota Cabinasis a 24-in. rigid gas export line that connects the
Cernambi field to the Cabinas terminal in Maca, in the state of Rio
de Janeiro. It is the second route developed by Petrobras for the flow
of gas produced in the Santos basin.
The shallowest 300 km (186 mi) were installed using the s-lay to be laid in line with the pipe. By convention, the length of the pipe-
method, which is faster in terms of layrate. The FDS2, however, had line was measured from Km 0 being the deepest end, to Km 380 at
to take over from water depths (WD) where the largest S-lay vessels the shore end. The FDS2 laid the section from Km 83 to Km 0. The
could no longer do the job. A battery limit had to be set at around deepest point along the line was close to Km 10, at approximately
1,740 m (5,708 ft) WD, since beyond this depth the capacities of the 2,250 m (7,381 ft) WD.
industrys existing major s-lay vessels were exceeded, and a j-lay
method and high tension capacities were necessary. Tension capabilities
This deepwater pipeline section measured 83 km (51.5 mi) in As mentioned above, water depths below 1,700 m (5,577 ft) de-
length, and comprised sections of 1.25-in., 1.375-in., and 1.438-in. manded use of the j-lay technique and thus the deployment of the
wall thicknesses. The pipe was laid in the direction of increasing FDS2. An additional advantage was provided by the significant mar-
water depth, from the battery limit with the S-lay section toward its gin between the maximum tensions experienced during the proj-
deep end termination at 2,234 m (7,329 ft) WD. Four in-line tees, one ect operations and the high tension capacities of the FDS2, which
in-line valve, and the PLET (pipeline end termination) structure had allowed laying operations to be optimized. Due to the challenging

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 FLOWLINES AND PIPELINES

environment offshore Brazil, it was decided

to lower the top angle of the pipe as much
Pipelaying parameters on the Cabinasproject.
as possible, thus deliberately increasing Cabinas pipe laying dynamic tension
the top tension so as to lower the bending (to be compared with FDS2 capacity:
Geometry of the catenary 1,500 mT pipe laying / 2,000 mT contingency holding)
moment all along the pipe catenary, and
maximize the allowable environmental con- Operating conditions Accidental flooded conditions
Pipe data Water depth Layback J-Lay
ditions for safe laying of the pipeline. (OD x WT) range range tower angle Max. project Max. Max. project Max. Recorded
For the Cabinas project, the angle of design Recorded design
the j-lay tower was reduced from 84 as per 24 x 1,700 m- 920 m- 81 from 1,300 mT 760 mT 1,700 mT N/A
the initial plan in the tender phase down to 1.438 2,240 m 1,140 m horizontal
81 for project execution. A three-degree
change in the laying angle may seem a small
value, yet it led to:
Production & Drilling Chokes \ Compact Ball & Check Valves
Reduced bending stress in the cat- API Piping Accessories \ Pressure Relief Valves \ Valve Manifold Packages
enary so as to increase the allowable
sea-states by 60% in terms of significant
wave height (Hs)
Increased layback from 750 m to 1,100
Choking Under Pressure
m (2,460 ft to 3,608 ft)
Increase in the required bollard pull CORTEC
from 50 mT to 90 mT (55 t to 99 t), al- has the right Choke
most doubling)
Increase in the design tension value of for your application.
the pipeline by more than 25%.
In the event of pipe flooding, the FDS2
had by far sufficient thrust and friction ca-
pacity to hold the pipe in standby with the
catenary flooded. The vessel could then
abandon the pipe for leakage and/or dam-
age inspection and dewatering.

In-line structures
The 24-in. export line comprised five-off
in-line structures, and ended with a termi-
nation PLET. The heaviest structure to be
installed was the PLET, which weighed 107
mT (118 t) overall. The PLET was laid well
within its target, with a 0.6 m (~2 ft) accu-
racy, thus allowing for an optimized design
of the 24-in. jumper connection to the Cer-
nambi pipeline.
All structures were installed in-line with
the pipeline, with little impact on pipe pro-
CORTECs industry-leading choke line
duction, using one of the FDS2s assets, an offers the most reliable and adaptable
upending table that launches structures from designs for any drilling or
the deck of the vessel to her j-lay tower. production choke application.

Construction equipment Contact us to select the most suitable

One of the keys to the FDS2s successes solution for your project requirements.
is her j-lay tower, one of the worlds largest.
The concept is an upscaling of the tower on
the FDS, the other j-lay vessel in the Saipem
fleet. The construction equipment associ-
ated with the tower is also responsible for
several outstanding achievements and world
records.
For example, the FDS2 has the ability to The Standard
hold pipes with high tensions by friction; in Non-Standard Valve Production
i.e., without requiring a forged collar. This is
made possible by Saipems patented system ww w. u s c or t ec. com \\\\\\\\\\\\\\\\\
of compliant grip pads, which delivers the
Houma 985.223.1966
required friction coefficient values. CORTEC proudly designs,
manufactures, assembles,
Port Allen 225.421.3300
On the Cabinasproject, there was enough and tests all products in
Houston 713.821.0050 the USA. The API QMS Registered mark is either a trademark or registered trademark of

friction capacity to hold 2,500 mT (2,755 t) of the American Petroleum Institute in the United States and/or other countries.

1610off_59 59 10/5/16 1:53 PM

 FLOWLINES AND PIPELINES

pipe (i.e. 50% more than required to cover

the flooded case). In other words, the FDS2
could have lost one-third of the grip pads and
still been able to hold the flooded pipe. Such a
loss obviously never occurred, since the grip
pads are qualified under fatigue for at least
250 km (155 mi); i.e. three times more than
what was needed for the project.
In addition to ensuring comfortable mar-
gins in terms of tension capacity, the compli-
ant grip pads also provided cost effectiveness.
Their use meant that it was not necessary to
purchase forged collars, or perform costly
maintenance or replacement operations, as
is the case with regular polyurethane pads or
tensioner tracks.
The vessel also has two heave-compensat-
ed winches, one of 600 mT and one of 1,000
mT (661 t to 1,102 t) capacity. The 1,000 mT
winch cable (160-mm diameter) was record-
ed by its manufacturer as the first of its kind:
it set a record for worlds heaviest rope, as
listed in the 2010 Guinness Book of Records,
for a length of 3,000 m (9,842 ft), which at PLET in December 2014, just prior to landing on seabed.
the time stood at the limit of the rope indus-
trys capabilities. mT can be deployed in a single lift down to Gulf of Mexico; and 620 mT (683 t) by the
Later, in 2013, Saipem again challenged 2,000-m (9,842-ft) water depths, with heave EMAS Lewek Constellation in reel-lay in 2015
the rope industry by purchasing a 4,000-m compensation. on a test pipe in the GoM.
(13,123-ft) cable for the FDS2, once again set- From the Cabinasproject, it may be ob-
ting a world record. The 1,000 mT (1,102 t) A world record served that:
heave compensation system, whose concep- The laying philosophy on the Cabi- Tensions around 500 mT (551 t) were
tual design is proprietary to Saipem (patent nas project was based on the principle of constantly sustained during several
pending), is the first of its kind for single-wire leveraging the FDS2s high tension laying months of the campaign
systems. Its design is built around the prin- equipment. It led to a new world record for Peaks of tension are related more to the
ciple of minimizing the bending cycles, thus the laying tension of a vertically laid pipe- nature of the ongoing task or a shift in
reducing heating and fatigue of the rope. By line. Similar achievements in vertical ten- wave periods rather than an increase in Hs
assembling the winches in double fall, pipe- sion include the 570 mT (628 t) laid by the A maximum Hs of 4.5 m (14.7 ft) was
lines or any structure greater than 1,000 Hereema Balder in j-lay in 2004-2005 in the recorded while laying
No equipment breakdown was observed
during the campaign. Only some tem-
porary abandonments were performed
due to excessive Hs or for other opera-
tional reasons.

Ongoing performance
The Cabinas pipeline was the heaviest
pipeline laid at WD greater than 2,000 m
(6,561 ft) by Saipem and as far it has been
possible to establish by anybody else in the
industry. With the FDS2s j-lay equipment de-
signed to sustain heavy loads, record-break-
ing tensions were experienced continuously
for several months with confidence, since
all operations were properly engineered and
controlled. The Cabinasrecord opened the
door to subsequent achievements. In fact,
just a few months later, with Petrobras award-
ing Saipem the Sapinhoa NorteCernambi
Sul contract, the FDS2 installed the largest,
deepest, and heaviest free standing hybrid
riser, laying 20-in. and 19-in. risers at a water
depth of 2,200 m (7,217 ft). These operations
confirmed the vessels suitability for chal-
Worlds heaviest ropes installed on FDS2 storage winch. lenging deepwater projects.

60 Offshore October 2016 www.offshore-mag.com

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 17 TH ANNUAL

MARCH 21-23, 2017

HENRY B. GONZALEZ CONVENTION CENTER
SAN ANTONIO, TEXAS USA
WWW.SUBSEATIEBACKFORUM.COM

MEETING
THE CHALLENGES

Include Subsea Tieback Forum & Exhibition as a key component of your marketing strategy and gain one-on-one
access to hundreds of key decision-makers. The Subsea Tieback Forum & Exhibition is the largest global event, both
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1610off_61 61 10/5/16 1:53 PM

 EQUIPMENT & ENGINEERING

New tools and technology for the offshore industry

Subsea electrification enabling deeper and longer step-outs
Kristin Elgsaas System electrification can mean replacing Adaptations are feasible where
Subsea Electrification, GE Oil & Gas a single leaking hydraulic actuator with an available power is lim-
electric one to maintain control of production. ited. The aim is to ensure Ne
Hydraulic control and electro-hydraulic Or it can be adding electric actuators and electric actuators can tool w
control systems have supported the subsea
industry since its infancy more than 50 years
removing hydraulics from manifolds, in-line
tees, pipeline end terminations and other
be added as easily as an
extra instrument. Their tech s and
ago. Production and hydrocarbon fluid flow is standalone structures to reduce equipment limited power draw and nolo
controlled and regulated through the opera- cost. Or it can be fully fledged all-electric pro- flexibility in terms of gy
tion of subsea chokes and valve actuators. duction systems with improved performance input voltage, makes them
These systems use pressurized hydraulic and reduced system cost. well suited for brownfield and
fluid, supplied from the topsides to the seabed GE has a long history supplying subsea retrofit applications.
through special tubes contained in a compos- electric system components including subsea For subsea compression, the fast-acting
ite umbilical. GE IFOKUS anti-surge actuator
Subsea, hydraulic and was developed specifically to
electro-hydraulic systems protect the compressors in
have evolved to provide high the system. This is a linear
reliability and availability actuator with torque capabilities
controls with increasingly up to 80kN. The solution is cur-
sophisticated functionality. rently in operation at Statoils
However, longer step-outs and sgard gas compression project
ever deeper-water installa- in the Norwegian Sea. It was also used in
tions are increasingly push- Norske Shells Ormen Lange Pilot project in
ing the capability boundaries the same region, the worlds first full-scale
of these systems. At the same integrated subsea gas compression system
time, oil companies are with a full subsea power supply, transmis-
pressing for reduced costs sion and distribution system. Between
for manufacturing, install- 2011 and September 2016 the system
ing and operating them. operated under an extended test pro-
Electrifying subsea sys- gram in submerged conditions with
tems to address many of these real hydrocarbons at Shells test facil-
challenges is not new, although ity at Nyhamna, western Norway. Gas
implementation to date has been from the Ormen Lange field is sent via a
sporadic and fairly limited. The subsea pipeline to Nyhamna for processing.
industrys inherent conservativeness Left: Low Power Rotating Electric actuator with Among the other GE technologies
is one factor. Another is the fact that not all the local energy storage for choke and valve opera- employed for the Pilot were the 12.5-MW,
tion in greenfield and brownfield applications.
technology pieces have been readily available. vertically-oriented centrifugal Blue-C compres-
Right: Anti-surge linear actuator used to protect
However, following years of development the compressor in subsea processing systems.
sor, specifically designed for subsea operation;
and qualification, the pieces are now coming (Images courtesy GE Oil & Gas) subsea switchgear supplying power and pro-
together. tection to multiple loads from a single cable to
Replacing electric systems with hydraulic controls, electric actuators, power systems, shore; subsea variable-speed drives that take
systems removes the need to transport and and condition monitoring. Its portfolio of output from the subsea switchgear, provid-
store hydraulic fluid offshore, and to supply it subsea actuators includes rotary or linear, low ing the optimal frequency for the individual
subsea under pressure. This facilitates a move to high power, low to high torque, functioning supply lines feeding the compressor; a subsea
into deeper water and longer step-outs. Such over a range of operating speeds. uninterruptible power supply providing power
systems are also well suited to operations in The companys GE IFOKUS electric actua- and protection to all the subsea compression
sensitive areas and under stringent environ- tors can be powered and controlled either station auxiliary loads; and a Mecon Dry-
mental regimes, as replacing fluids with elec- through the production control system, by Mate connector 145/700 that enables power
trics gives leads to zero-discharge systems. trickle charging and storing energy in an transmission at 145 kV for a 120-km (74.6-mi)
Subsea electric also reduces cost across integrated energy management system, or fed tieback distance
the subsea production system, as there is less directly from a dedicated power source. GE The Snhvit field that Statoil brought into
topsides equipment, the umbilical becomes IFOKUS rotating electric actuators for chokes operation in the Barents Sea in 2006 was
slimmer, the controls architecture is simplified and non-safety rated valves talk to the control another milestone. The fiber-optic commu-
as hydraulic systems are removed, and the system through a SIIS level 2 CAN or MOD- nication system, controlled from onshore in
main equipment such as trees and manifolds BUS interface protocols that are widely used Hammerfest, extends out to wells up to 220
becomes smaller and lighter. Electric systems and accepted throughout the industry. km (137 mi) offshore, is matched by a long
also lend themselves more easily to condition The power drawn by the energy manage- distance three-phase 3-kV power supply sys-
monitoring and faster, simultaneous operation ment system is typically 48W or less during tem that also carries a back-up communication
of valves, enabling a faster system startup. charging and well below 10W in stand-by. channel superimposed on the power lines.

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 EQUIPMENT & ENGINEERING

Hostile subsea conditions pushing boundaries of HP/HT valves

Paul Shillito formation of stress fractures in the valves cas- of materials for operating at temperatures of
Oliver Valvetek ing a situation that could lead to a blowout 150, 180 and 200C (302/356/392F). These
and, potentially less catastrophic but just as de-ratings impose further complications on
Deep subsea wells are a hard target, with important, leak paths through the seals that al- the designers mathematical models.
the high pressures and temperatures present- low the fluids carried to slowly escape into the Another pressure-point is the gland seal of
ing a significant design and engineering chal- environment. Attempting to contain hydrocar- the valve. HP/HT units tend to operate with
lenge. Any well at a temperature above 150C bons at pressures of 20,000 psi (1,379 bar) and various types of media: in addition to produced
(302F) and 15,000 psi (1,034 bar) is defined temperatures of 200C (392F), with near-zero fluids, the valves are required to operate
as high-pressure/high-temperature (HP/HT), risk of either of the above hazards occurring, with various types of chemical injection and
and all equipment used on the application pushes material characteristics to their limit, hydraulic fluids. Normally these will be made
notably the valves must be tested and rated and this is leading to increasing development from thermoplastics such as PTFE or PEEK,
to contain the produced fluids. Engineering and take-up of exotic alloys. but their reduced physical resilience at tem-
subsea valves that need to be in service for For years 718 stainless steel has been the peratures around 200C makes a guaranteed
two decades or more demands careful selec- material of choice for the top-performing HP perfect seal a real challenge.
tion of materials, a high level of manufacturing valves. However, as pressure and tempera-
precision, and comprehensive performance ture requirements rise, this material al- Approval testing
testing. though a high-performing, nickel-rich alloy Oliver Valvetek has developed a range
Subsea valves are pressure vessels. In is reaching its performance limits. Above of small-bore valves rated for pressures up
order to contain the pressure inside, the walls temperatures of 150C, the pitting resistance to 20,000 psi and temperatures up to 204C
of the valve are placed under tension that acts of the material is not suitable for exposure to (394F). Achieving this rating for subsea
around their circumference. Mathematical seawater. equipment was a key goal, as it will both open
modeling features extensively in the design The latest-generation HP/HT valves are up new extreme HP/HT opportunities.
process to ensure the valves have a pressure now being made from 725 nickel alloy, a The valves are in different configura-
envelope that is sufficient to contain both the cutting edge material that was first produced tions to suit flange, weld and threaded end
high pressures and temperatures inside and by material scientists less than 30 years ago connections. This will allow them to serve
the pressures on the outside. and was first developed for industrial use in subsea applications including test, isolation
With conventional medium-pressure valves the 1990s. However, ultra-high temperatures and chemical-dosing lines. Before any valve
a thin-walled pressure vessel model is used cause a reduction in the strength of the mate- is approved for service, prototypes must be
to perform calculations for pressure contain- rial. In the latest edition of API 6A, de-rating thoroughly tested in conditions that simulate
ment. This model assumes that the cylinder factors have been published for a wide range and go beyond the pressures, temperatures
walls are no more than around and dynamic movements that valve
10% of the thickness of the valves will face once in position on the
overall radius. A potential downside sea floor. The mandatory tests
of this approach is that, when pres- are specified in the standards ISO
sures get very high and valve walls 10423 and ISO 13628-4, however
become much thicker, the model most operators have their own
can significantly underestimate criteria that exceed the levels
the level of stresses within the wall described by ISO.
thickness. In these instances, stan- Testing for the new small-bore
dards such as ASME VIII Division valves involved high and low
2 recommend use of a thick-walled temperature cycling i.e. opening
pressure vessel model. and closing the valves through
However, for HP/HT designs, multiple operations at the maxi-
the calculations must extend to take mum pressure and temperature
into account local failure due to Above: HP/HT valve undergoing 3-axis strain gauge testing. (All photos limits simulated. In reality, many
excessive strain, ratcheting effects courtesy Oliver Valvetek) of these valves will be used on ap-
and fatigue. In addition to the nor- Below: Temperature test facility simulating conditions for valves from plications where they will only be
mal pressure changes associated -60 to +250C. cycled a limited number of times
with a valve being pressurized to in their operational lifespan, so the
working pressure, then depressur- testing builds in a significant safety
ized to ambient, fatigue assessment margin.
must consider the fluctuations at Developing new valves to stand
normal working pressure. In some up to the extremely demanding
instances, the stresses due to HP/ conditions of HP/HT wells is a labo-
HT can lead the valve designer to rious and expensive process, with
discard normal linear elastic design the initial valve design taking over
practices in favor of elasto-plastic a year to move from the drawing
models. board to first completion. However,
as energy companies target ever
Material challenges deeper, hotter and higher-pressure
The two main factors that can wells, the economic incentive for
cause an HP/HT valve to fail are the industry is clear.

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 EQUIPMENT & ENGINEERING

Deep Down announces new station-keeping system

Deep Down Inc. recently introduced Sta-Put, a station-keeping
system for use on lifeboats and other types of specialized vessels,
including support and survey.
Company officials say that the joystick-controlled system was de-
signed to simplify intricate and expensive dynamic positioning systems.
In reducing the size and complexity, the company found it could install
station-keeping systems into smaller vessels, opening the door for a
new class of vessel operations that require less investment. Providing
the ability to maintain position automatically and equipped with joystick
controls avoids the need for larger more expensive vessels.
When installed on lifeboats, Sta-Puts Go Home button enables a re-
leased vessel to automatically return to the correct lifting hook position.
The boat can move in any direction with a touch of the joystick control,

Deep Down Inc.s Sta-Put station-keeping system is designed for use on

lifeboats, support, and survey vessels. (All images courtesy Deep Down Inc.)

and can maintain position utilizing the compact on-board computer,

continuous duty bow thruster, stern thruster, and existing conventional
propeller, and rudder. This serves to eliminate much of the former stress
and time associated with mandatory lifeboat drills or emergencies.
Deep Down officials say that the Sta-Put system has successfully
undergone sea trials.
In addition, the company has conceived of a non-classed multi-
purpose vessel that features the Sta-Put system. The vessel can operate
above 20 knots when carrying crews and/or equipment. Manned by
Deep Down recently completed its move to a new facility, located on the
a small crew cross-trained in marine and remotely operated vehicle
east side of Houston. The 265,000 sq ft (24,619 sq m) campus houses a
3,400-metric ton (3,748-ton) capacity umbilical carousel, shown partially as- (ROV) operations, it can transition into Work Cat mode. The vessel
sembled in the foreground, which the company says is one of the biggest in would have a work-class ROV with video telemetry and can broadcast
the world. In July, Deep Down booked orders for flying leads and umbilical the ROV signal to a remote location. HSE and security is also provided
accessories valued at over $3 million directly from two major operators. through incorporation of thermal cameras and CCTV.

AssetWise APM offers enhanced integrity and reliability solutions

Bentley Systems says its AssetWise risk associated with asset failure and
APM helps integrity and reliability en- dynamic measurement points and ac-
gineers working with SAP Enterprise curately track and analyze data from
Asset Management (EAM) to develop locations that cannot be predeter-
programs that support risk-based mined. This latter capability will be
inspections processes. With a view to applied to subsea pipeline inspections
the SAP Portal in real-time, inspec- conducted by ROVs.
tors and maintenance technicians are The information collected in dy-
empowered with the information they namic inspections is much more than
need, when they need it in the field. the reading value and date collected.
The SAP Portal view in AssetWise In the case of subsea inspections, it
APM displays the following information: includes:
Functional location and equip- Where is it location, depth,
ment assets length, area affected
AssetWise APM users can navigate assets geospatially and get
Functional location, equipment, immediate feedback when condition readings are out of allowable Conditions water temperature
and operations task lists tolerances. (Image courtesy Bentley Systems) Anodes, berms, debris, span, ma-
SAP maintenance items rine growth, burial information.
Standard maintenance plans. and accurate decisions on corrective actions. Rob Churchman, senior director, product
With access to SAP EAM asset and work Bentley says that AssetWise APMs certified advancement, Bentley Systems said: Our
history, AssetWise APM users can navi- integration with SAP EAM ensures that users depend on AssetWise working
gate assets geospatially and get immediate organizations using these systems together seamlessly alongside SAP to ensure assets
feedback when condition readings are out of can drive a proactive process to manage asset are safe and reliable. The SAP Portal view
allowable tolerances. The asset health dash- reliability and integrity. within AssetWise APM has been so suc-
board consolidates and analyzes all condition Other new capabilities in AssetWise APM cessful that we have expanded the capabili-
data from inspections and real-time monitor- include dashboards for strategy development ties further to drive higher levels of asset
ing devices, which facilitates more timely analyses. These dashboards help identify the performance.

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 EQUIPMENT & ENGINEERING

Corrosion inhibitor enhances integrity of platform caisson legs

United Arab EmiratesAbu Dhabi Marine loss corrosion coupons Cortec says that custom
Operating Co. effectively reduced corrosion were used to assess the strips of its EcoPouch VpCI-
rates in an offshore platform caisson leg by effectiveness of this ap- 609 powder were deployed
in the platforms caisson
using Vapor phase Corrosion Inhibitors. The proach.
leg for additional protection.
company is a major producer of oil and gas Unlike traditional con- (Courtesy Cortec)
offshore Abu Dhabi in the United Arab Emir- tact corrosion inhibitors,
ates and operates multiple barge-type offshore VpCIs have a moderately
platforms constructed on caisson legs. high vapor pressure that
A fatal explosion occurred at one of these allows them to function in
platforms due to gas build-up inside the the vapor phase without ap- tion. These EcoPouches
confined compartment around one of these plying VpCI directly to the were filled with VpCI-609
caisson legs. The gas was found to be hydro- metal surface. Therefore, powder and constructed
gen generated by the depleted anodes inside VpCIs provide protec- from breathable Tyvek,
the leg. tion in the liquid phase, which allows VpCI
Internals of the platform caisson legs had vapor phase, and critical molecules to be emitted
previously been left uncoated, filled with interphase. VpCIs access through the membrane to
biocide-treated water, and protected with sus- the most difficult to reach form a protective molecular
pended sacrificial anodes. Over two decades, spaces and provide effec- layer on metal surfaces.
the anodes had depleted inside the caisson tive protection against crevice corrosion. The results showed strong improvement
legs and accumulated along with biocide water As part of the preservation process, Cortec in the VpCI-treated caisson leg. Corrosion
and blasting grit. An investigation of the explo- says its ready-to-use waterborne corrosion was kept at low rates considered acceptable.
sion recommended the removal of these accu- inhibitor VpCI-337 BD was sprayed inside After two years, Cortec VpCI inhibitors had
mulations, and an alternative environmentally the caisson leg to prevent corrosion and bio- proved to effectively mitigate corrosion in an
friendly method of protection was considered. growth. Water-soluble, biodegradable VpCI- offshore environment, reducing the corrosion
A successful pilot study was conducted in 609 S powder was then fogged into the void rates in the protected leg by 584% compared
2009 to evaluate the use of Cortecs Vapor space to counter the dead volume of water at to the control. The pilot project was deemed
phase Corrosion Inhibitors (VpCI) to rectify the bottom of the leg. Custom manufactured a success and the methodology was adopted
the problem. One caisson leg was emptied and strips of Cortecs easy to use EcoPouch were for treatment of all other caisson legs at the
preserved with VpCI, and carbon steel weight suspended from above for additional protec- complex.

Zinc-rich epoxy coating offers corrosion protection alternative

A highly saline atmosphere, extremes of with the chloride ions to reduce the movement
temperature and severe mechanical stress of corrosive elements through the coating
creates specific challenges for those need- the inhibitor effect.
ing to protect their offshore structures from Continued exposure over extended
corrosion. Failing to adequately guard against periods often cause micro-cracks in the paint,
these harmful effects will cost dearly in terms which will eventually lead to real cracks and
of shortened asset life, increased maintenance corrosion. The hollow glass spheres within
costs and more downtime. Avantguard absorb most of the stress from the
The conundrum for the offshore industry initial cracks and prevent them from worsen-
is having to make a choice between treating ing. The sub-products formed during the
their structures with zinc-rich silicate coat- zinc activation process will then occupy the
ings that offer higher protection but lower micro-crack and stop it from developing into
mechanical strength, or zinc epoxy coatings Hempel says that its Avantguard epoxy coating something more serious. This significantly
which are stronger but historically deliver less exhibits the strength of a traditional epoxy reduces rust creep helping to ensure the
protection. The ideal is a combination high alongside anti-corrosion properties. coating retains its anti-corrosive properties for
levels of protection against corrosion coupled much longer.
with the mechanical strength to prevent crack- allows the zinc particles to rust instead of But a coating must also be easy to apply.
ing and splitting. the underlying steel structure. By enhancing Often, in order to achieve excellent galvanic
Following many years of research, Hempel the performance of zinc in this way known properties, a coating will contain a high con-
has developed a technology called Avant- as the galvanic effect Avantguard is able to centration of zinc pigments that makes it hard
guard. This is a zinc-rich epoxy coating that outperform conventional zinc epoxies. for the paint to adhere to the steel surface and
exhibits the strength of a traditional epoxy Galvanic protection is just one of three can also lead to mud-cracking. The activated
alongside anti-corrosion properties. It does properties delivered by Avantguard to ensure zinc technology in Avantguard overcomes
this by combining the ingredients used in the required levels of anti-corrosion. Acti- these problems and even allows a recoat inter-
traditional zinc epoxies with two new elements vated zinc also has a high tendency to form val of just one hour (at 20C) which increases
hollow glass spheres and a proprietary insoluble salts throughout the film that makes productivity for applicators.
activator. This makes the zinc much more it less permeable to water penetration this Avantguard products are increasingly being
effective in altering the electro-chemical gives it its barrier properties. These salts also specified to extend the lifetime of their struc-
reaction between salt, water and oxygen that act as environmental scavengers and react tures and reduce maintenance costs.

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 EQUIPMENT & ENGINEERING

Integrated riser monitoring system enhances

multi-well fatigue life planning
Nick Stringer Specifically designed for subsea use, the before the system was deployed. An intrinsic
Aquaterra Energy RMS has four marinized gauges for strain part of planning the well, it ensures operations
measurement. Unlike conventional methods, are safe in terms of a suitable operating enve-
When considering multi-well campaigns abutment to the riser is by a specially chosen lope and required fatigue life. Once analysis
and the fatigue damage accrued through subsea epoxy resin, which ensures the strain has shown that the operation is safe to begin,
cyclic loading, traditional methodologies to data recorded is directly measured from the it is desirable to precisely measure the events
accurately assess performance and integrity surface of the riser rather than the flex of the riser experiences so that a more accurate
are failing to address the level of precise data any clamp used, which again, increases the representation of the fatigue utilization history
management now required by the industry. fidelity of the measured data. Additionally, this can be recorded.
Improved techniques should be used to create abutment method was chosen to avoid fatigue The product delivered a time-framed his-
a clear, concise history of all component parts. hot spots caused by welding, which reduces tory of strain from the four strain gauges. This
Use of this information is also lacking when the asset life. Heavy-duty housing provides was then converted to bending, stress ranges
planning which riser assets should be used maximum impact protection preserving the and directionality. Subsequently, this informa-
in the field and when inspection, repair or re- housed instrumentation and eliminating hang tion was processed using rainflow-counting
placement is necessary. This area of concern up during deployment and recovery. As the and the pre-defined multi-dimensional matrix
is receiving greater attention in the North system is pre-installed and run on a standard gave fatigue utilization against direction for
Sea, where riser systems are being each constituent component along the
increasingly used for large, multi-well full riser length, to meet the clients
campaigns lasting a number of years. needs.
Aquaterra Energy developed the The value of using the system for this
Riser Monitoring System (RMS) project was evident as it demonstrated
to provide integrated monitoring the increased accuracy levels that can
and analysis based on structural be attained compared to an analytical-
mechanics principles, underpinned only approach. The system was able to
by strain-based measurement. This identify key differences in the results
integrated approach provides moni- compared to those expected
toring with meaning, which is the aim from the initial analysis. For
of Aquaterras monitoring systems. It example, as the system ac-
has been developed to provide either counts for strain directional-
real-time information or operate in ity it also showed that, during
memory mode, depending on project the drilling campaign, the
requirements. This aims to allow safe Above: The RMS has been developed for loading direction from envi-
and detailed assessment of fatigue jack-up operations and can be deployed ronmental conditions differed
life based on measured riser strain. in water depths greater than 120 m (394 from the expected metocean
ft). It is fixed to a typical riser joint in the
It also features an analysis methodol- conditions.
stack-up. Right: The RMS during running.
ogy to facilitate asset life management A mathematical transfer function is used to This information is then
and, possibly, life extension; minimize automatically map fatigue damage at any input into Aquaterras riser
project risk; and provide planning of location along the riser system from one measurement management system, which
maintenance activities. point. (Images courtesy Aquaterra Energy) details the complete run history and fatigue
The RMS was recently deployed by utilization for each asset. This management
a major operator in the North Sea to monitor a riser joint, operational impact is minimized. tool is then used to inform maintenance and
high-pressure riser deployed from a jackup. The data logger records all relevant repair activities, ensuring the riser asset is fit-
The RMS uses a combination of pre-installed information at a rate of 10Hz and has capacity for-purpose and ready for future use.
direct riser strain measurement, subsea data to store up to 560 days of continuous data in Fatigue damage and cracks in oil and gas
logging, and processing algorithms to generate its 32Gb memory card. It can be configured risers can potentially cause severe financial,
real-time information for drilling and workover to store data locally, or instantly transmit reputational and safety consequences. Analyz-
operations. The system has been developed the data to the surface for live evaluation, ing long-term fatigue performance and asset
for jackup operations and can be deployed in processing and reporting. This can range from life expectancy is complex and experience
water depths up to 120 m (394 ft). It is fixed to a short campaigns to up to a number of years from previous projects and from the field has
typical riser joint in the stack-up. A strain-based of continuous service, without intervention. A shown that RMS-based measurements can be
measurement system was chosen, as this can single battery pack module powers the unit for more accurate and/or less conservative.
be converted easily to assess fatigue damage, in excess of 250 days with an option to include By improving fidelity in data analysis,
unlike accelerometer-based measurements. additional packs or powered from surface. integrating fatigue monitoring and fatigue
Accelerations are processed through a com- The measured strain data is automatically tracking systems, operators can be assured that
paratively large number of mathematical steps processed using a pre-defined multi-dimen- better-informed decisions can be made based
to achieve fatigue damage, which can often lead sional matrix, to deliver component fatigue on accurate loads the riser system has been
to large errors and drift. Using strain improves utilization in real-time if necessary. subjected to. This information can then be used
the fidelity of the results. A mathematical trans- The RMS was recently used by a major with confidence by drilling companies to plan
fer function is used to automatically map fatigue operator in the North Sea to monitor a high- maintenance activities, which will ultimately
damage at any location along the riser system pressure riser deployed from a jack-up. A increase safety and integrity of the riser system
from one measurement point. detailed riser analysis program took place and potentially extend asset life.

66 Offshore October 2016 www.offshore-mag.com

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 WWW.TOPSIDESEVENT.COM

WHERE CONFERENCE & EXHIBITION

IT ALL
COMES
TOGETHER
ERNEST N. MORIAL CONVENTION CENTER
NEW ORLEANS, LOUISIANA USA FEBRUARY 21-23, 2017
TOPSIDES, PLATFORMS & HULLS is the offshore industrys only event dedicated to the topsides, platforms
and hulls for both deep and shallow water. A comprehensive technical program presented concurrently with
an exhibition, TOPSIDES, PLATFORMS & HULLS CONFERENCE & EXHIBITION covers the design, engineering,
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OWNED & PRODUCED BY: PRESENTED BY: SUPPORTED BY: HOSTED BY:

1610off_67 67 10/5/16 1:54 PM

 BUSINESS BRIEFS

People zenby as director of its Middle East operation. for Mexican SENER-CONACYT scholar-
Decom North Sea has appointed Nigel Anadarko Petroleum Corp. has appointed ships, which would allow Mexican students
Lees as the chairman of the board. Darrell Hollek as executive vice president of to study oil and gas-related masters and PhD
Kenneth Murdoch has resigned as CFO operations, Ernie Leyendecker as executive programs at RGU.
of Bumi Armada. vice president of international and deepwater Statoil (UK) has appointed Petrofac
Dave Clark has joined Harris Pye Singa- exploration, and Robin Training Ser vices as its preferred sup-
pore as general manager. Fielder as vice president plier for training and emergency response
Aker Solutions has introduced a new execu- of investor relations. services for the operators UK offshore
tive management team that includes Dean InterMoor, an Acteon operations. Under the new five-year contract,
Watson as COO, Valborg Lundegaard as company, has appointed Petrofac will provide HSE, survival, fire and
head of the customer management center, Joe Price as country marine training services to support Statoil
Svenn Ivar Fure will continue to lead the manager for InterMoor personnel working on the Mariner field in the
companys front-end efforts, Egil Boyum Canada based in St. East Shetland basin and the North Sea wind
as head of the products Johns, Newfoundland. power projects, Hywind and Dudgeon. One
center, Knut Sandvik Mech-Tool Engineering Price special feature of the contract will be a train-
as head of the projects has hired David Scott as ing and support program for the operators
center, and David Clark managing director. Incident Management and wider emergency
as head of the services Markel International response teams, ensuring preparedness
center. (Singapore) has appointed ahead of any potential incident scenario. This
Paul Karlsen has Timothy Foister as will include the delivery of major emergency
joined ALE as commercial energy underwriter. response training, emergency response
manager for the Scandi- Novara GeoSolutions exercises, relative response training, and
navia business. He will Combe has promoted Neal reviewing of plans.
be based in Velalsora, ODriscoll to president. Metal finishing equipment and consum-
Norway. Peter N. Keilen has ables supplier Engineering Utilities (EU)
Foister
AGR has appointed joined Qinterra AS as vice has supplied a range of power tools to Heere-
Steve Combe to man- president of marketing ma Fabrication Groups yard in Hartlepool,
age its Aberdeen-based and communication. northeast England. EU has agreed to lease
manpower consultancy Ericson has appointed more than 500 power tools to the yard on a
business. John Ericson III as three-year hire, maintenance, and service
Lincoln Electric Co. president. contract. The power tools will include the
has promoted Douglas Elite Control Sys- Metabo 5-in. and 7-in. electric angle grinders
S. Lance to president, tems has named Tina for material removal solution, said to provide
Lance
Cleveland Operations, Campbell as marketing reduced vibration levels.
Edward M. Crouse to coordinator. Pareto JGO Shipbrokers and Derrick
vice president, Cleveland Alexander Robin- Keilen Of fshore have merged. The company will op-
Operations, and Dalithia son has joined Phoenix erate under the name Pareto Shipbrokers
C. Smith to vice presi- International Holdings Inc. as a senior project AS in Norway and Pareto Shipbrokers
dent, Human Resources. manager overseeing oil and gas projects Ltd. in the UK.
Global Maritime Con- growth and development, safety and opera- Statoil has awarded Kraemer Maritime
sultancy & Engineering tional procedures, and estimating. AS a contract to supply provisions to its Nor-
has established a Techni- Terr y Crump has retired as director of wegian continental shelf installations, effec-
cal Authority Board to be sales for the Americas at Samson. Vince tive Jan. 1, 2017. The estimated contract value
led by Alberto Morandi, Crouse Trotta has been named his successor. is around NOK 230 million ($28 million) per
formerly head of Global year. The contract period is four years with
Maritime Americas. Each Company News an option for three two-year extensions. The
board member, who Robert Gordon University (RGU) has supplies include food, cleaning products,
will be nominated for a secured funding from the UK governments kiosk merchandise, disposables, and other
two-year term, will have prosperity fund to create a skills development related products and services.
specific knowledge in one framework for the oil and gas industry in Energy advisory and consultancy firm
of the following disci- Mexico. This will issue recommendations on Calash has expanded its services to the USA,
plines: marine operations, how to address the potential skills gap in the opening offices in both Houston and New
structural engineering, na- Mexican oil and gas industry over the next York. In addition, this growth includes the
val architecture, dynamic Smith 15 years, at graduate and vocational level. formation of a partnership between Calash
positioning assurance, RGU will draw on experiences working in the Ltd. and Quest Of fshore Consulting, a
marine systems, risk, insurance and mooring. North Sea and internationally to advise the division of Quest Of fshore Resources Inc.
Board members will also be responsible for Ministr y of Energy in Mexico (SENER) The company said that the expansion will
defining the competency requirements for on training and further development of the allow it to better serve the US-based private
their specific disciplines and will be encour- Mexican workforce, and securing future tal- equity funds, credit-focused investors, and
aged to become external industry experts ent. Mexicos oil and gas industry is expected trade, with a focus on transaction support
through participation in expert panels, to need more than 135,000 additional skilled services across the oil and gas industry,
speaking engagements, and writing technical people over the next 15 years to meet the targeted at the US onshore and offshore
papers. governments production targets. RGU has oilfield service and E&P markets. It will also
Aqualis Offshore has appointed Ben La- also been identified as a partner university be able to provide services including restruc-

68 Offshore October 2016 www.offshore-mag.com

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 BUSINESS BRIEFS

turing support, market entry strategy, asset bonded epoxy powder coating and polypro- Bristow says it supported helicopter res-
valuation, and commercial and operational pylene to its portfolio. cue efforts for Louisiana residents affected
support. DSM Demolition plans to create a facility by recent historic flooding in the parishes
The Energy Industries Council has on the Orkney Islands offshore northern around Livingston and East Baton Rouge.
opened its new office in Houston. Scotland to take advantage of the likely rise The company used an advanced Leonardo
Aberdeen Drilling Consultants has in North Sea oil and gas decommissioning SAR AW139, a Sikorsky S-76, and a Bell 407
received the latest International Organisa- work. The proposed facility is at Lyness, on aircraft for the rescue efforts. These helicop-
tion for Standardisation (ISO) accreditation the east coast of Hoy. The company aims to ters are regularly used in offshore oil and
for its quality management systems. The work closely with Orkney Island Council, lo- gas transportation services. The SAR AW139
ISO 9001:2015 standard certifies that ADC cal businesses and the Hoy and wider Orkney helicopter is equipped with technology for
operates a formalized management system community to develop the concept. It expects search and rescue missions, including a
able to provide rig inspection and develop- to submit a formal planning application at the 700Mhz radio that allows for communication
ment of training services at a consistent high end of this year, followed by opening of the with the multi-agency responders, mission
level of quality to its customers worldwide. facility in 2018. management capabilities, external rescue
The scope of the certification includes areas Seanamic Group has acquired the busi- hoist system, and critical care medical equip-
such as QAMS manual control, context of the ness and trading assets of IMES Ltd., an ment. Onboard the aircraft are two pilots,
organization, leadership, planning, support, inspection and monitoring engineering solu- hoist operator, rescue swimmer, and flight
operations, performance evaluation and tions company, headquartered in Aberdeen, paramedic. Working in close coordination
improvement. UK. with the Office of Homeland Security and
Frogtech Pty Ltd. has changed its name Van Oord has contracted Ashtead Tech- Emergency Preparedness for Livingston Par-
to Frogtech Geoscience. The company also nology to supply video processing systems ish, teams based in Galliano and New Iberia
unveiled a new logo and redesigned website. to support the Dutch contractors global off- quickly mobilized the companys response to
The new logo reflects the Australian heritage shore construction operations. Ashtead will provide critical care to those in need.
of the company with red ochre, representing supply five SubC Imaging DVRO systems, al- Kobelco Compressors America Inc.
the earth of the Australian outback under a lowing Van Oord them to record multiple 3D, has opened a new service facility in the
blue Australian sky. HD, and SD video channels simultaneously Houston area. The new 6,000-sq ft (557.4-sq
GEs Marine Solutions business has for future offshore construction, dredging, m) facility in La Porte, Texas, will be able
signed a cooperation agreement with and marine engineering projects. to handle multiple compressor overhauls
Houston-based engineering consulting, proj- Sonardyne Brasil Ltda. has supplied simultaneously.
ect and construction management company equipment that simulates acoustic position- InterMoor UK Operations, part of
Zentech Inc. This collaboration will see the ing operations on dynamically positioned Acteon risers and moorings business, has
two companies provide advanced vessels in- rigs and ships to GE Power Conversion completed its ninth straight year of operation
cluding self-elevating lift boats, drillships, and for its new training school in Maca. The without any lost time incident. During this
semisubmersibles. Zentech will contribute Sonardyne Marksman hardware and 6G Sim nine-year period, the company has performed
with its knowledge and experience in design, software will be used to provide student DP more than 2,700 projects from three bases,
while GE will provide smart and advanced en- officers with an understanding of the role five storage yards, and many quayside loca-
gineering expertise and technology in power acoustic positioning has in assisting a vessel tions in the UK and around the world.
generation, propulsion, and control. to remain in a specified location while under- Chevron Thailand has contracted RWG
Aker Solutions has reorganized into five water operations are being conducted. to overhaul two Siemens Industrial Avon gas
delivery centers: customer management, RJE International has celebrated 25 generators by the end of this year. All work
front end, products, projects and services. years in business. The company manufac- will be conducted at RWGs service center in
This set-up, it claims, will help drive further tures underwater products including diver Aberdeen. The scope includes full disassem-
standardization and accelerate a company- navigation, diver sonar, and underwater bly, detailed inspection, component repair
wide improvement program to boost cost- relocation products. and reassembly, and performance testing.
efficiency by at least 30% by the end of 2017. Siemens Wind Power AS has awarded Both Industrial Avon engines are said to have
Aquatic Asia Pacific Pte Ltd. has ap- Aqualis Of fshore UK Ltd. a global frame- operated reliably in gas compression duty
pointed Oiltech Consultancy Ser vices to work services agreement for the provision of for more than 30,000 hours since RWGs last
market its portfolio of flex-lay solutions, en- a range of engineering services required for overhaul program. Chevron Thailand uses
gineering services, patented equipment, and wind turbine installations. Under the agree- the compressors to maintain gas production
offshore personnel to operators and subsea ment, Aqualis Offshore will provide general from its offshore facilities.
contractors in India. engineering and design services including Oil service investment specialist Akastor
JDR has unveiled a horizontal lay-up jackup site specific assessments, geotechni- has signed a heads of agreement with Japa-
machine at its manufacturing facility in north- cal assessments and design services includ- nese trading and investment company Mitsui
east England. This is the second largest in ing marine warranty services and marine & Co. to form a joint venture owned 50/50
the world for subsea umbilicals, the company consultancy. by AKOFS Of fshore and Mitsui. The joint
claims. The investment is part of an ongoing French contractor SeaOwl has agreed to venture will acquire the Skandi Santos hull
expansion at the plant to provide increased buy Ogas Solutions, an oil and gas services from DOF Subsea Rederi and the Skandi
capacity. group formed in 1999 and based in Bangkok, Santos topsides from AKOFS. Subsequently,
Trelleborgs offshore operation based in Thailand. The acquisition should help the it will enter into a lease agreement with
the UK has selected Kyung Kook Interna- group broaden its integrated service offer to AKOFS concerning the remaining contract
tional Corp. as its new Korean agent. The the industry. duration between AKOFS and Petrobras.
companys offshore operation in Norway has Viper Subsea Technology Ltd. has DOF Subsea will continue to provide ROV
expanded its production capability with a acquired a 33% equity stake in Salt Lake City, and marine services onboard the vessel as
new manufacturing line. It has added fusion Utah-based LiveWire Innovation Inc. part of a contract with Petrobras.

www.offshore-mag.com October 2016 Offshore 69

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 Offshore SEE RESULTSAsk me how!
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MARKET
713-963-6291
[email protected]

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1610off_70 70 10/5/16 1:54 PM

 ADVERTISERS INDEX

SALES OFFICES A
PENNWELL PETROLEUM GROUP Aker Solutions ........................................9
1455 West Loop South, Suite 400, Houston, TX 77027
PHONE +1 713 621 9720 FAX +1 713 963 6228 www.akersolutions.com L
David Davis (Worldwide Sales Manager) Alimak Hek ............................................39
[email protected] www.alimakhek.com Louisiana Cat ........................................21
Shelley Cohen (Regional Sales Manager) www.LouisianaCat.com
[email protected] Antelope Oil Tool & Mfg. Co. LLC ........35
Grace Jordan (Classified Sales) [email protected] www.AOT-LLC.com
ATV S.p.A. ........................................14-15
GREATER HOUSTON AREA, TX M
David Davis [email protected] www.atvspa.com

USA Mokveld Valves ..................................... 11

Shelley Cohen [email protected] mokveld.com
B
UNITED KINGDOM SCANDINAVIA
THE NETHERLANDS MIDDLE EAST Bastion Technologies, Inc. ...................49
10 Springfield Close, Cross, www.HiConTraining.com O
Axbridge, Somerset, United Kingdom BS26 2FE
PHONE +44 1934 733871 www.BastionTechnologies.com Offshore Mediterranean Conference
Graham Hoyle [email protected] Bentley Systems ...................................25 and Exhibition ....................................... 13
www.bentley.com/offshore www.omc2017.it
FRANCE BELGIUM PORTUGAL
SPAIN SOUTH SWITZERLAND MO- Offshore Technical Compliance ............8
NACO NORTH AFRICA www.OTCompliance.com
961 Camp Redon, 83830 Callas, France C OneSubsea, A Schlumberger
PHONE +33 (0) 4 9470 8263 FAX +33 (0) 4 8981 9982
Stefania Piciotti Thompson [email protected] Company .................................................3
Cortec Fluid Control .............................59 www.onesubsea.com
GERMANY NORTH SWITZERLAND www.uscortec.com
AUSTRIA EASTERN EUROPE Cudd Well Control .................................23
RUSSIA FORMER SOVIET UNION www.cudd.com
BALTIC P
Sicking Industrial Marketing
Kurt-Schumacher-Str. 16, 59872 Freienohl, Germany PennWell
PHONE +49 (0) 2903 3385 70 FAX +49 (0) 2903 3385 D Deepwater Operations
82 Conference & Exhibition .................37
Andreas Sicking [email protected] Delmar Systems, Inc. ............................43 www.deepwateroperations.com
ITALY TURKEY GREECE www.delmarus.com Subsea Tieback Forum &
CYPRUS MALTA Draeger ................................................. C3 Exhibition .........................................61
SILVERA MEDIAREP www.draeger.com www.subseatiebackforum.com
Viale Monza, 24 - 20127 Milano, Italy
PHONE +39 (02) 28 46716 FAX +39 (02) 28 93849 Dril-Quip ..................................................1 Topsides, Platforms & Hulls
Ferruccio Silvera [email protected] www.dril-quip.com Conference & Exhibition ........... 67, 70
www.topsidesevent.com
JAPAN
e.x.press Co., Ltd. Petrotechnics, Ltd.................................29
AIOS Gotanda 606, 1-10-7 Higashi-gotanda F petrotechnics.com
Shinagawa-Ku, Tokyo 141-0022, Japan PH Industrie-Hydraulik GmbH &
PHONE +81 3 6721 9890 FAX +81 3 6721 9891 Fahlke Control Systems .......................31
Masaki Mori [email protected] Co. KG................................................... C2
www.fahlke.de www.ph-hydraulik.de
AUSTRALIA NEW ZEALAND FMC Technologies ............................... C4
13 Langrune Grove, www.fmctechnologies.com
Port Kennedy, WA, Australia 6172 Fugro........................................................7
PHONE +61 8 9593 4405 or +61(0) 437 700 093 S
FAX +61 8 9593 3732 www.fugro.com/ask
Mike Twiss [email protected] S. Himmelstein and Company .............70
www.himmelstein.com
NIGERIA I
Flat 8, 3rd floor (Oluwatobi House)
71 Allen Ave, Ikeja, Lagos, Nigeria
PHONE +234 802 223 2864 IES International Exhibition V
Dele Olaoye [email protected] Services ................................................. 13
www.ies.co.it Vallourec................................................27
BRAZIL
Centro Empresarial Mourisco ITC Global.............................................. 17 vallourec.com
P. Botafogo 501 / Sala 101 www.itcglobal.com
Torre Po de Acar, Rio de Janeiro 22250-040
PHONE +55 21 2586 6302 W
Deny Tenenblat [email protected]
J
CHINA SOUTHEAST ASIA Well Control School................................4
19 Tanglin Road #05-20 JD Neuhaus Hebezeuge .........................5 www.wellcontrol.com
Tanglin Shopping Center www.jdngroup.com
Republic of Singapore 247909
PHONE +65 9616 8080
FAX +65 6734 0655
Michael Yee [email protected] K The index of page numbers is provided as
FOR ASSISTANCE WITH MARKETING a service. The publisher does not assume
Karmsund Maritime Offshore
STRATEGY OR AD CREATION, PLEASE any liability for error or omission.
CONTACT: Supply....................................................33
PennWell Marketing Solutions www.kamos.no
David Davis
PHONE +1 713 963 6206
EMAIL [email protected]

1610off_71 71 10/5/16 1:54 PM

 BEYOND THE HORIZON

Building a knowledge-sharing
culture in Africa
The key to successful local skills development is the proactive However, it is always worth investigating what this really means in a
promotion of tailored knowledge sharing in-country, rather than at- course context it should be more than just changing the front slide
tempts to export learning formulas from other countries. This can of a PowerPoint presentation to add a new date and country location.
be seen in South and East Africa, which are important areas for new The hard truth is that implanting existing material is profitable
oil and gas activities. The emergence of a new generation of African and easy; developing truly tailored solutions requires more time, ef-
technical professionals is on the horizon, and not too far in the fu- fort and skill and is therefore intrinsically less profitable.
ture. How their skills are developed is a focus area for governmental A more positive model of skills transfer, and a large scale one, is
authorities and companies alike, as large efforts will be made over the role the Norwegian government took in developing local con-
the next few decades to resource the jobs which will be created. tent in the early days of Norways oil and gas industry.
Money will be spent and learning and development will happen The country had a highly educated workforce with technical compe-
in some form; this is inevitable. The question is: will this be done tence in manufacturing, shipbuilding, and engineering but no domestic
efficiently and effectively or not? The answer lies in the approach oil and gas industry. Predominantly through Statoil, the government
that is selected. ensured that technology and expertise from international oil compa-
Most people see the benefit of knowledge transfer and indeed lo- nies flowed into the Norwegian oil and gas industry and stayed there.
cal content policy is now commonplace. This is based on the funda- Knowledge was indeed transferred and built on to develop innovative
mental premise that petroleum resources belong to a nation and its new technologies tailored to the local offshore environment. Norwegian
people; it follows that it is reasonable to expect the resources to be companies now export that expertise internationally, where appropriate.
developed for the benefit of the communities of those nations. The characteristics of the approach are to focus on the in-country
Within the industry, local content requirements are designed to need, develop a tailored approach to skills development, and do this while
ensure the majority of goods and services needed at each phase of planning for the long term. These characteristics play out on a smaller
the oil and gas life cycle are locally supplied. There is more to this scale too and revolve around having the right attitude to skills transfer. It
than just increasing the percentage of local employees, and interna- is often about forsaking short-term financial gain for the long-term nur-
tional oil companies are compelled to actively engage with the local turing of talent. The aim is to achieve a similar model of transfer and local
workforce as part of their operations. development for the long term in the emerging African businesses.
The need to draw on expertise from the global talent pool is clear, There are several approaches to knowledge transfer: tutored class-
and the wish to replace that global assistance with a workforce of local- es, links with universities, blended learning techniques, secondment
ly-based, home-grown, talented individuals is equally clear. But how? opportunities within partnered licensees, and drawing on specialist
This is where the attitude of existing training providers comes in. consultancies for expert knowledge. Identifying the different ap-
When an opportunity for new training business comes along in a proaches to knowledge transfer is a necessary step in order to choose
country, there is a strong tendency for providers to take their cur- options but these are just the tools, not the solution itself.
rent off-the-shelf materials and simply implant them in the new envi- Based on the logic of the positive model described above, and
ronment. This will be in spite of the fact that the materials will have also our own tutoring and training experience gathered throughout
been developed in another country, for another culture and perhaps almost 25 years designing and running learning events across the
even for a completely different purpose. business, we argue that the key at the working level is the promo-
The extreme case is a major multinational which exports expertise tion of a knowledge-sharing culture; one in which the instinct of all
developed from offshore developments, and runs training courses in parties involved is to share for the benefit of others.
countries which have only land-based activity. Strange but true. This culture is most likely to develop when providers and seekers
The latter is a perfect example of un-tailored training, and there is include individuals who are passionate about the principle of shar-
much of this around in the training business. Standardized capabil- ing, irrespective of monetary gain. The onus on management is to
ity matrices are another example written once for one marketplace ensure that these individuals are at the forefront of the knowledge
but exported globally. Profitable but not optimal. transfer activities, whatever form these take.
Skills requirements for a country are not entirely generic every Such a culture at the working level something which training
country and every new development area has specific needs which providers can control fits neatly into the larger scale positive model
are a consequence of the initial human resource, the technical need of long-term planning described above. It should be noted that long
in question and the scope of the developments. For in-country skills term refers to skills development of individuals in the country; the role
development, one size does not fit all. of the external training provider is to transfer knowledge, then exit.
Tailored training providers are aware of this so will generally Mark Bentley
advertise their products with strap lines such as tailored for you. TRACS Training Director, AGR

This page reflects viewpoints on the political, economic, cultural, technological, and environmental issues that shape the future of the petroleum industry. Offshore
Magazine invites you to share your thoughts. Email your Beyond the Horizon manuscript to David Paganie at [email protected].

72 Offshore October 2016 www.offshore-mag.com

1610off_72 72 10/5/16 1:54 PM

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THE TIME IS NOW

As one of the worlds top 10 oil and gas producers, the UAE enjoys one tenth of global reserves, but the new reality of
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 In February 2015, in response to the prospect of Oil Recovery (EOR) rate of 70 percent. Add to this
oil running out in the UAE in 50 years, Sheikh Mo- ADNOCs intention to raise offshore production from
hammed, crown prince of Abu Dhabi suggested, its current 40 percent share of total to 50 percent as
if we are investing today in the right sectors we well as their increased emphasis on sour gas through
will celebrate at that moment an extraordinary the Integrated Gas Development (IGD) project, tech-
statement, no less because the UAE currently de- H.E. Dr. Sultan H.E. Eng. Suhail nical challenges abound. These, the UAE is prepar-
Al Jaber, CEO, Al Mazrouei,
pends on oil for around half of its GDP. With the ing to meet, with timely assistance from technology
ADNOC minister of
country going all out to convert its oil leadership to energy companies specializing in EOR. Musabbeh Al Kaabi,
a true energy leadership, the time is truly now. CEO of Mubadala Petroleum admits, we still need
Faltering global E&P activity has meanwhile to address certain technology gaps in EOR and unconventionals, but
pushed oil and gas companies to return their atten- points out that, due to their relationships with IOCs, they have histori-
tions to petroleum Mecca: the Middle East, which cally benefited from accelerated access to cutting-edge technologies
possesses 60 percent of global reserves and an av- and advanced know-how. As CH2M SVP Joel Eacker highlights, how-
erage onshore lifting cost of USD 27 per barrel, ac- Ahmed Kenawi, ever, the Middle East is always looking at the bigger picture and is
senior vice
cording to compiled sources from International not overly focused on quarterly results. Consequently, clients are will-
president,
Energy Agency and Morgan Stanley Equity Re- Halliburton ing to spend money to invest in technological improvements.
search. As Halliburton SVP Ahmed Kenawi de- In a beleaguered global market, IOCs are understandably eager to
clares, I am convinced that the last drop of oil globally will come assist ADNOC which controls 95 percent of the UAEs oil and 92
from this region. An oasis of calm in a hot region, the UAE is at once percent of its gas in its goals to retain their participation in the UAE.
a critical geo-market and the ideal gateway to the most important oil BP President and GM (UAE) Abdulkarim Al Maazmi affirms, BP has
and gas region in the world. been investing in Abu Dhabi for about 75 years and is a leader in
developing and deploying EOR techniques to boost recovery from
INCREASING OPERATIONAL EFFICIENCY maturing fields.
Despite being in a region where high underground pressure forces
crude oil to literally gush out of the ground, not even the UAE cannot
afford to ignore the new normal of being fit for fifty. With the social
UAE OILFIELDS
compact of Gulf petro-states premised on the role of the state as the
chief distributor of wealth, the International Monetary Fund (IMF) es-
timates the UAEs breakeven price needed to meet overall government
IRAN
expenditure at USD 73. While the UAE has sufficient fiscal buffer to
withstand USD 50 oil for nearly thirty decades, it also needs to contend
with the various challenges of its maturing oilfields, most of which have
been operational for decades. Little wonder, then, that new ADNOC
CEO, H.E. Dr. Sultan Al Jaber, announced upon his appointment a
Fabeh
program of modernization and restructuring centered on the concept QATAR
ABK
of operational efficiency to drive efficiency, performance and profit- Nasr
Umm Shad Mandous
ability. The ultimate goal, he declared, was to ensure the ADNOC El Buduq Belbazem
Zakum
group remains a pillar of the UAEs social and economic development
Mubarras Umm Al-Dalkh
Gasha Umm Lulu Abu Dhabi
for decades to come. To this end, ADNOC must evolve into a more
Al-Dabbiva
agile organization to maintain its competitive edge in todays global Rumaitha
economy. Key initiatives include the centralization of procurement in Bab
Sahil
the parent company through the use of mega-tenders and the intro- Bu Hasa

duction of benchmarking practices based on industry best practices. Asab

Shah
Furthermore, ADNOC remains committed to its 2013 plan to in- UAE
crease production from 2.8 million barrels per day (bpd) to 3.5 million OMAN

bpd by 2018. With the low oil price grinding E&P activity to a tempo- K.S.A
rary halt, ADNOC is counting on maximizing production from existing
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4 ENERGYBOARDROOM.COM | OCTOBER 2016

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 NEW TECHNOLOGY IS A PLUS

W
ith stronger competition, companies are repair, helping to prevent catastrophic failure in the pipeline.

scrambling to differentiate themselves in a New pipelines in oil and gas have long prefabricated sections that

crowded landscape, particularly as technologies and are welded end-to-end. RotoScan was developed for the inspection of

services become increasingly commoditized. Ap- girth welds during construction of long-distance pipelines, both onshore

plus+ Velosi Regional Manager Brian Dawes laments, and offshore. The RotoScan technology tests the welding to make sure

as with any service, older NDT technologies have the weld integrity is up to standard. The advantage of RotoScan vis--
Brian Dawes,
become a commodity. In line with increasing opex, regional vis conventional X-ray technologies is that it is done in real-time at high-
manager,
asset integrity management services, which provide speed, ensuring that projects stay on schedule.
Applus+ Velosi
clients with accurate data on plant and equipment In addition, he adds, following the global merger between Velosi, the

condition, are soaring in popularity. In response, Applus+ Velosi has de- inspection and testing division of Applus+ Group, and RTD, the advanced

veloped two proprietary technologies: NDT division, as well as the acquisition of NDT Technology in the UAE,

INCOTEST (an acronym for Insulated Component TEST) is a unique we have introduced our own proprietary technologies to the UAE and

corrosion survey method that allows ferrous pipes and vessels to be the Middle East region, in addition to the full range of conventional certi-

surveyed through thermal insulation under demanding circumstances. fication, inspection and testing services. For companies looking to stand

It essentially provides a complete corrosion map of the metal structure out during these troubled times, in-house R&D and strategic M&A activity

and will identify any weak parts of the metal that require maintenance or seem to be two solid strategies.

Total MD Hatem Nuseibeh has even bigger assets in full instead of relying on multiple consul-
ambitions. As development manager, we started tants offering specialist services. In January 2016,
the first EOR pilots in the early 1990s starting with Penspen was awarded a four-year PMC contract
huff and puff, then first gas injection pilots, hori- by the Abu Dhabi Marine Operating Company
zontal wells and experimentation with selective (ADMA-OPCO) for ongoing work on Das Island,
injection production. When you aggregate these the main industrial center of offshore oil and gas
Joel Eacker, Hatem
sorts of findings to Totals overall knowledge and senior vice Nuseibeh, production. Penspen SVP (Middle East and Asia-
president, president, Total
technology base derived from the companys en- Pacific) Michael Simm explains, this is [the new
CH2M E&P UAE
tire experiences round the world, I view the 70 per- delivery] model that the UAE is increasingly turn-
cent target as highly achievable. In the Emirati ing towards, with a focus on obtaining better value from their oil re-
spirit of dreaming big, he adds, why not even 80 sources, which integrates operations and integrity management
percent one day? more closely.
Service companies also see ample opportunity CH2M SVP Eacker concludes, the current downturn in oil prices
in the UAEs stated targets. Amec Foster Wheeler means that service companies need to think strategically and posi-
Regional Operations Director Ross Gibson points Abdulkarim tion themselves as solutions providers to our clients. My role is to
out, We have seen a reduction in capital expendi- Al Maazmi, imagine a future where the price of oil remains at USD 50 to 60 a
president
ture (Capex) from our customers, which is very un- barrel for the long-term. The usual recourse is cost cutting and
and general
derstandable. However, operating expenditure manager, BP globally the industry has seen significant layoffs, with even ADNOC
UAE
(Opex) has increased. Industry estimates put total cutting almost ten percent of its workforce. While understandable,
fall in E&P investment worldwide in excess of USD 400 billion. To cost cutting is not a panacea and AGR CEO Svein Sollund cautions,
meet clients Opex needs, companies are rolling out new service we do not want to see a lost generation in this industry. He adds,
lines, as Expro VP (MENA) Riccardo Muttoni outlines: we recently we have been very careful to retain such a skill base, while still
launched four new business streams, including production optimisa- streamlining the organization [by] increasing the integration and
tion and well abandonment, which reflect the changing needs of our skills transfer between their teams in Norway, the UK, APAC, UAE
industry. He stresses, Our strategy is focused on delivering multi- and the Americas. Jotuns Regional Protective Sales Director Trevor
product line, integrated solutions for customers. Maughan adds, innovation is necessary to survive and grow, which
Operational efficiency is also driving deeper structural changes: is why we have focused on continuous product innovation. In-
increasingly, clients prefer to have one company manage complex volvement in major flagship infrastructure projects like the Burj Khal-

6 ENERGYBOARDROOM.COM | OCTOBER 2016

1610off_focusreport_6 6 10/5/16 4:00 PM

 ADIPEC 2015 Source: ADIPEC

ifa, the Burj Al Arab, the Dubai Metro and more recently, the Dubai of the UAE may prevent the worst of culture shock, but international
Opera House, are testament to their success. CH2Ms motto rather companies still need to adapt to the quirks and foibles of the industry
sums it up: global capabilities, local execution. there. Archer Regional Director Sherif Refaat muses, the Gulf is a
very different environment from Europe it is people-oriented as
AVOIDING THE CLASH OF CIVILIZATIONS opposed to systems-oriented [so] the approach to training has to be
With falling activity in the Americas and the North Sea, oil and gas different, which explains Archers strong HR program. For Halliburtons
companies are refocusing on the Middle East. Hong Namkoong, Vice Ahmed Kenawi, employing locally is intuitive: as an Egyptian, I have
President & Managing Director at Samsung Engineering UAE, em- benefited from working for Halliburton both in my country of origin,
phasizes, Since 2000, the Middle East has been Samsung Engineerings as well as in Houston and in the Middle East at large. I understand
primary market. The multicultural and aggressively open environment the culture of this region.

OCTOBER 2016 | ENERGYBOARDROOM.COM 7

1610off_focusreport_7 7 10/5/16 4:00 PM

 WEATHERING THE STORM

G
iven the importance of relationships in Arab are in Dubai while in Abu Dhabi we have three facilities in Mussafah, as

culture, the UAE is not a place to make a quick well as our downtown office located close to our clients. This is important

buck; Emiratis want to see genuine commitment to because Dubai has better transport links to the rest of the world while

the country. Weatherfords UAE office is one of its ADNOC sits in Abu Dhabi and critically, any oil and gas company wishing

top ten affiliates with a huge market share of projects to work in the sector must register an office in Abu Dhabi. To show invest-

involving Directional Drilling and LWD services, so it ment and commitment, the company built three state-of-the-art facilities
Mohamed Galal,
is little wonder that this Big Four company has sunk Central MENA five years ago in ICAD, including our training center where we offer our

significant investment into the UAE. Mohamed Galal, area director, employees and clients both technical and nontechnical training.
Weatherford
Central MENA area director exults, The importance Having a strong local presence also brings convenience and efficiency

of our operations in the UAE has grown over time and the UAE now serves to companies. Galal elaborates, These strategically built facilities allow

as the hub for the region because we are able to deliver equipment and Weatherford to fix and build tools locally instead of having to ship equip-

support services for all our clients in the Eastern Hemisphere; which cov- ment back to Houston or the United Kingdom, resulting in faster services

ers the Middle East, Africa and Asia-Pacific. Moreover, logistics ranging and turnaround time for our clients which allows us to take on more proj-

from visa processes, safe business practices and the infrastructure of the ects. Weatherfords efforts have been recognized, most recently during

seaports and airports in the UAE allow Weatherford to operate in a con- the 2015 Abu Dhabi International Petroleum Exhibition and Conference

trolled environment. (ADIPEC), when they were awarded Best Oilfield Services Company in

He explains their dual-Emirates strategy. Our regional headquarters the International category.

However, working effectively in this region still essentially connect ADCO to Totals entire internal systems.
requires a physical presence. The Emirate of Dubai, For L&T Hydrocarbon Engineering, their knack for interacting
strategically placed at the crossroads of Europe, with NOCs came about similarly through familiarity. With their slo-
Africa and Asia, is the natural epicenter, with its ag- gan being we make things that make India proud, they have been
gressive openness to foreign investment, well-reg- described by a former Indian finance minister as a national compa-
ulated legal environment and advanced infrastruc- Hong ny metaphorically because of their unique position straddling the
ture links. EXPROs Muttoni states, Having regional Namkoong, public and private sector. CEO Sarma says, as an Indian company,
vice president
headquarters in the UAE is critical in delivering our we are used to collaborating with national companies so it was a
and managing
breadth of operations and continued growth. This director, natural extension to us to work with the likes of ADNOC or Saudi
Samsung
country has strong manufacturing and logistical ca- Aramco in the Middle East. This worked immensely in their favor, as
Engineering
pabilities and is a key hub from which to run our (UAE) NOCs are the most important clients in this region and while the
operations. IOCs and major oil companies are active in such markets, they are
Another hurdle for IOCs is the need to cultivate strong relation- mostly present as partners.
ships with NOCs, whose patronage or lack thereof decides the
success of the company. This challenge is perhaps familiar for Total, LOCALIZING THE EMIRATI WAY
whose defining challenge has always been the paucity of home pro- With Emiratis forming less than 10 percent of the total population, it
duction, which is why they need to forge excellent working relation- is understandable that the oil and gas industry remains powered by
ships with NOCs globally. This explains why Total has had a very suc- IOCs and employs only a small fraction of the local population. Histori-
cessful incursion into the UAE, with involvement across the entire oil cally, petroleum activity in the UAE predates the country itself, with
and gas value chain and even in other parts of the energy sector like Iraq Petroleum Company (IPC) being the first exploration company
desalination and solar power generation. In January 2015, Total was to be established in 1936. In line with the UAEs focus on sustainability
awarded a 10 percent share in Abu Dhabi Company for Onshore Oil and efficiency, however, significant efforts have been invested in
Operations (ADCO), which is responsible for over half of the Emir- cultivating a local knowledge base. Emiratization is a crucial national
ates production, beating out established rivals like Royal Dutch Shell priority; while the UAE does not yet have the official local content
and BP. Totals MD Nuseibeh explains that this is the result of a radi- requirements common in the region, Gary Graham, VP (MENA) of ABS
cal new arrangement with a whole new dimension to the concept Group reveals, increasingly, a key performance indicator when it
of partnership, involving the creation of a technology hub that will comes to the awarding of contracts is local workforce content.

8 ENERGYBOARDROOM.COM | OCTOBER 2016

1610off_focusreport_8 8 10/5/16 4:00 PM

 WHEN FIRE AND ICE COMBINE

N
orway and the UAE may not often be mentioned well-managed. Local content rules need to be supplemented with education

in the same breath but remarkable parallels can and a complete training infrastructure to ensure that demand of skilled labor

be drawn between the two oil and gas giants, not least is matched by supply. Norway is seen as a global leader in EOR and subsea

because the oil industry in both countries only started technology in part because they have developed rigorous training standards

in the 1970s. Norwegian ambassador H.E. Jens Eikaas and best practices.

outlines, the UAE has long since had an interest in This is even more important, he elaborates, because the Middle East in
Sonny Sola,
Norway because of the way that Norway has managed CEO and general is exhibiting a marked regional trend in shifting towards high-technol-
managing
its petroleum resources. Statoil, the Norwegian IOC, ogy automated drilling rigs that require skilled labour. With each well costing
director,
begun as an NOC that had to rely heavily on IOCs for NORDIC around USD 10 million, companies understandably want a guarantee of the

technology and expertise, but as Statoil VP Middle East quality of their subcontractors.

Neri Askland explains, with contracts that included the condition that we To help meet this critical need, NORDIC is in the process of setting up

would take over as operators after a certain number of years [to strike] a bal- the Norwegian Well Intervention Academy, to provide quality training in all

ance between gaining the outside expertise and experience we required and aspects of well intervention. We would like to export the Norwegian style

the domestic control necessary for our national plan. standards and systems of education, training and certification to the UAE

The UAEs Emiratization program also echoes Norways attempt to in- and to the region, in order to facilitate the regulation and formalization of the

troduce nationals into the petroleum industry. NORDIC CEO Sonny Sola ap- industry here, he declares. This is a way for us to capitalize on the potential

plauds this initiative, but warns, My only reservation is that this has to be here as well as to contribute our technology to the industry.

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 As there still remains a skills gap between Emira- There is certainly no lack of potential in the UAE. Nabil Al-Alawi,
tis and expat workers, this poses a supply problem CEO of Al Mansoori, one of the largest and most well known local
for IOCs that are keen to hire local talent. As a re- service providers in the region, said his motivation was precisely to
sult, it has become increasingly common and nec- show that there is considerable talent and potential in this region,
essary for companies to implement their own and that it is possible for a local company to develop and compete
training programs. Samsung Engineering, for in- Gary Graham, head to head with the largest international service companies.
stance, has offered the Samsung Engineering In- vice president,
ternship Program (SEIP) in the UAE since 2010, to
ABS Group
BECOMING A TRUE ENERGY LEADER
demonstrate our commitment to the UAE and Both vision and commitment from the characteristi-
contribute to the holistic development of the cally prescient leadership underpin the UAEs ag-
country, according to VP and MD (UAE) Hong gressive pursuit of energy and economic diversifica-
Namkoong. As L&T Hydrocarbon Engineering CEO tion to realize their dream of a post-oil economy.
Subramanian Sarma vows, LTHE actively engages The February 2016 Cabinet reshuffle saw a merger
in development of local citizens through campus H.E. Dr. Matar
of the Ministry of Education and the Ministry of
Subramanian
recruitments, skill development initiatives and Sarma, Al Neyadi, Higher Education and Scientific Research, the real-
CEO, L&T undersecretary,
sponsored training at its various Indian centers. location of the water portfolio to the Ministry of
Hydrocarbon Ministry of
CH2M SVP Eacker expounds even further on this Engineering Energy Energy and the expansion of the Ministry of Environ-
notion of corporate citizenry, exalting, what sets ments mandate to include Climate Change (and
us apart is that we are an employee-owned company and we look subsequent renaming as Ministry of Climate Change and Environment).
to combine having the best people with an ethical, sustainable and Ministry of Energy Undersecretary H.E. Dr. Matar Al Neyadi says that
long-term approach to business. this was fundamentally anchored in the UAEs commitment to sustain-

More than just words

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 OILING THE GEARS OF INNOVATION

O
il and gas reserves do not an energy hub make; the top oil and gas capitals

of the world Aberdeen, Stavanger, Houston and Perth have all devel-

oped world-class ecosystems of research, development and innovation. To add

its name to that list, Abu Dhabi is investing lavishly on its R&D infrastructure and

capabilities, with ADNOC championing efforts with its Petroleum Institute (PI),

founded in 2001 on the model of the Colorado School of Mines. President Dr. Dr. Thomas
Thomas Hochstettler emphasized, Growing and developing the PIs research Hochstettler,
president,
capabilities via partnerships is something that the school is consciously focusing
Petroleum
on at the moment. Currently, over 95 percent of externally sponsored research Institute

projects are funded by the ADNOC Group of Companies, with the remaining

mainly by UAE government departments or national industries, the assumption being that ADNOCs

deep pockets will be a significant lure. Testament to its success is the fact that PI has engaged in col-

laborative research projects with top-tier international institutions like the Massachusetts Institute of

Technology (MIT), Stanford University and Imperial College in the UK.

But the UAE is also seeking a more substantial role in these partnerships. Associate Provost and VP

(Research) of the Masdar Institute of Science and Technology, Dr. Steven Griffiths looks towards Sin-

gapore as a key model: I would like to encourage more companies to base their R&D operations for

the Middle East region here. Hochstettler admits that traditionally, our research efforts have relied

heavily on our collaborating partner-institutions for laboratory and technical support, but the inaugura-

tion of our new facilities, with over 8,000 square meters of laboratory space, will allow PI to participate

as an equal player in these important collaborations. The USD 90 million PI Research Center (PIRC) is

set to open in November 2016.

The UAE is fertile ground for groundbreaking research, with no lack of technically complex chal-

lenges to tackle, most notably the issue of sour gas. PI has also been mandated to contribute to an

increase of five percent in Abu Dhabis EOR rate and, to this end, it has signed research agreements

with companies like Wintershall. In this way, Abu Dhabi hopes to water its innovation desert with not

just oil money but topnotch research facilities and the draw of challenging problems.

able growth across all

sectors.
Embracing ener-
gys multifaceted na-
ture, the UAE is
seeking to position
itself at the vanguard
of the clean energy
revolution by capi-
talizing on synergies
between the tradi-
Masdar City (artists interpretation) Source: Atlas Lens tional and clean en-
ergy sectors. Energy
leaders in the UAE often straddle both spheres comfortably; most notably, ADNOC CEO H.E.
Dr. Al Jaber started his career in Abu Dhabi Gas Industries Limited (GASCO) and led Mubada-
las Energy portfolio but was also instrumental in founding Masdar, where he served as CEO
until his appointment to ADNOC (he is now the chairman of Masdar) as well as the UAEs
Special Envoy for Energy and Climate Change to the UN.

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 storage, with the long-term vision being a national
ABU DHABIS OIL EXPORT REVENUES
network that captures carbon from power genera-
tion in order to use it for enhanced oil recovery
(EOR), reducing the need to use valuable natural

133.4 84.1 gas on EOR.

2016 marks the tenth anniversary of Masdar
58.5
58.5 H.E. Dr. Thani
Al Zeyoudi, Clean Energy and Executive Director Bader Al
minister of
Lamki makes it unequivocally clear that the UAE is
2013 2014 2015 climate change
and environment serious about clean energy. As a major supplier
USD (Billions)
Source: SAD, IHS @Abu Dhabi Chamber of Commerce & Industry of the worlds energy needs, the UAE is committed
to do its part in developing constructive approach-
Newly appointed Minister of Climate Change and Environment es to combat the impact of climate change and to
H.E. Dr. Thani Al Zeyoudi, himself from an oil and gas background, exemplify a leadership model in sustainable energy
states, we see the IOCs as innovative solution providers, contribut- and economic development. In the past decade,
ing to best practices in the region. This reflects the global trend of Masdar Clean Energy has been involved in a total
increasing collaboration between the traditional and alternative en- Bader Al Lamki, of 1.7 gigawatts of clean energy projects globally,
executive
ergy sectors. For instance, Total has diversified into solar power director, Masdar
including some of the worlds largest projects, like
through its affiliate, SunPower, and is a key player on the Shams-1 Clean Energy Shams-1 and the London Array in the UK, the
project in Abu Dhabi, the largest concentrated solar power (CSP) worlds largest operational offshore wind farm, and
plant in operation in the world. Masdar is working with ADNOC to plans to double this in the next five years. In 2009, the UAE became
develop commercial-scale projects for carbon capture, usage and the first developing country to host a major international organisa-

Nordic is a provider of cost-effective and innovative solutions for specialized drilling,

workover and thru-tubing intervention services.
Nordic discoveries consist of seeing what everyone has seen,
but thinking what no one else has thought.

Mission:
We adhere to a clear set of values that will drive our operating principles, business ambitions and are fundamental to the way we are working.

Bio:
NORDIC was formed in 2006 in the United Arab Emirates by a group of industry expects with extensive experience in the techniques of
snubbing & work-over, coiled tubing and well intervention services - expertise that sets NORDIC apart from any other company in the Middle
East region. Our highly motivated, experienced crews operate the most innovative snubbing & work over systems, coiled tubing units, shing
tools and thru-tubing tools available in the industry today - predominately built and developed by NORDIC.

NORDIC is one of the most experienced workover and well operation contractors in the region today. NORDIC employed a team of highly
skilled equipment operators - considered the best in the industry - that have built Nordics reputation for quality service and safety.
As an industry leader, Nordic has completed numerous jobs for major oil companies in the region.

Nordic Energy Services T: +971 4 884 0604

Dubai Investment Park 1 F: +9714 884 7704
Po Box 93086, Dubai M: [email protected]
United Arab Emirates www.nordicgulf.com

12 ENERGYBOARDROOM.COM | OCTOBER 2016

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 STRATEGICALLY INVESTING IN THE FUTURE

A
s all eyes turn to the UAE, the country is shrewdly exploiting its relatively

strong position in this downturn to pursue countercyclical strategies. Flush

with oil wealth, Abu Dhabi has created several investment arms, of which Abu

Dhabi Investment Authority, one of the largest sovereign wealth funds in the

world, is the largest and invests its USD 500 billion bounty only in non-oil indus-

tries. Another prominent example of the UAEs astuteness is the recently an- Musabbeh Al
nounced merger of Mubadala, the Abu Dhabi Development Company, with the Kaabi, CEO,
Mubadala
International Petroleum Investment Company (IPIC), in order to consolidate their
Petroleum
portfolios, which exhibit some overlap.

Musabbeh Al Kaabi, CEO of Mubadala Petroleum, Mubadalas international E&P investment arm,

has a dual strategy in this regard: the pursuit of strategic M&A opportunities and internationalization.

Al Kaabi explains, in terms of growth, we have been proactive in identifying emergent merger and ac-

quisition opportunities but admits, owing to the sheer market volatility that we are witnessing right

now, its going to be extremely difficult to embark upon bold steps. However, with low oil prices push-

ing M&A activity to one of its lowest levels in 2015, he confidently predicts, we can expect there to

be some attractive opportunities waiting to be grasped once a degree of oil price normality resumes.

Mubadala Petroleum remains, interestingly, a somewhat hybrid company with IOC characteristics

fused with a distinctly NOC function, a significant set-up that enables it to retain the best of both

worlds. As they are actively investing internationally, Al Kaabi elaborates, we need to be competitive

in terms of running our business [through] flexible decision making and decentralization. Neverthe-

less, as a government-owned entity, we are actively unlocking new opportunities that would be be-

yond the reach of a purely private enterprise, citing examples like the recent enhanced collaboration

agreements they have signed with their Chinese and Mexican counterparts, Chinese National Petro-

leum Company (CNPC) and Pemex.

tion, with Abu Dhabi becoming home to the headquarters of the International Renewable
Energy Agency (IRENA), testament to the UAEs emerging role as a global energy leader, and
in 2019, the UAE will also be the first OPEC member country to host the World Energy
Congress.

IN IT FOR THE LONG HAUL

Despite the difficult times, the UAE continues to be one of the most exciting
oil and gas markets today, and the stable political climate has entrenched it
as a great place to conduct business, with the UAE being the top recipient
of foreign direct investment (FDI) in the region. L&T Hydrocarbon Engineering
Sarmas last words of advice: the nature of the oil and gas markets change
over time, and you need [to be] responsive to developments, with a set of Gerry Boux,
managing
core values consistent with what the customer requires. Ultimately, depend- director, Haven
ability comes from good execution. Fire & Safety

The stability of the Emirati leadership and openness to the private sector
has produced a generation of expats that has grown to see the UAE as home, and the UAE
relies on them in large part to realize its dreams. Haven Fire & Safety MD Gerry Boux remi-
nisces, I came to the Middle East in 1981 and the UAE in 1982 and like many others I only
planned of staying for a couple of years. It has now been over thirty years and counting. Not
only have I raised a family here, my children are also raising their families here.

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