OGV Energy - Issue 41 - February 2021 - Subsea Review by OGV Energy

FEBAUGUST 2021 - ISSUE 2020 41

UKâ&#x20AC;&#x2122;s No. ENERGY SECTOR

PUBLICATION

THE SUBSEA ISSUE FEATURING

Proserv - Hiretech - Viewport3

Quanta - Spectis Robotics

GLOBAL ENERGY NEWS

UK North Sea - Europe - US Australia - Mexico - Middle East

WORLD PROJECTS MAP SUBSEA REVIEW ZONE INNOVATION & TECH

SUBSEA

This year, the UKCS is expected to see more development activity

INNOVATION

Eelume Subsea Intervention is reshaping underwater operations

GREEN ENERGY CONTRACT AWARDS ON THE MOVE STATS AND ANALYTICS LEGAL & FINANCE EVENTS

RENEWABLES

Can renewables become as profitable as oil and gas?

OIL-PRICE

The price West Texas Intermediate (WTI) rose in early January to above $50 a barrel

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CEO talks subsea trends and technology Read on page 4

www.proserv.com

CONTENTS

COVER FEATURE 4 Proserv - Subsea innovators targeting new opportunities

GLOBAL ENERGY NEWS 04

9 - UK North Sea 12 - Europe 14 - US 15 - Australia

16 - Mexico 18 - Middle East

WORLD PROJECTS MAP 22 - EIC - World's latest project updates

SUBSEA REVIEW

24 - Subsea Review: Cautiously Optimistic for 2021 26 - Subsea UK: The blue economy and it's ocean of opportunities 27 - Hiretech Completes successful subsea shears cutting trials

27 - Spectis Robotics: Small camera big features VT36 Camera

28 - Subsea Superintendent: Derek Dargie

INNOVATION ZONE

30 - Eelume Subsea Intervention: reshaping underwater operations

GREEN ENERGY

32 - Can renewables become as profitable as oil and gas?

33 - Equinor will test floating solar off FrĂ¸ya 34 - EIC: The 8x Cs of Energy Transition for Supply Chain success

EVERY MONTH 36 - Contract Awards 40 - On the Move 42 - Stats and Analytics 46 - Company News 48 - Legal and Finance 49 - Events 50 - Community Partner: Aberdeen FC

KENNY DOOLEY MAIN EDITOR Since returning back to work after the festive break, the feedback from the energy supply chain has been very mixed with both winners and losers. What is clear is that companies who are investing in technology, looking at new markets and embracing new creative commercial models have full order books and those that have sat on their hands and just waited for the oil price to start increasing again, have had a rude awakening. The challenges continue for companies relying on face-to-face events and the latest fall victim has been the Subsea Expo in Aberdeen, following their earlier postponement until May. With the current restrictions still in place and no real visibility on when an assessment can be made post-vaccinations, I feel it will be unlikely that any large face-toface events will take place this year at all, at least in the UK.

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At OGV Energy, we are continuing to work hard on a number of new projects that will ensure that our clients are still receiving the brand exposure they are looking for on the global stage and we will keep you updated as to when these are ready to come to market.

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To kick-off our "Subsea" themed February issue, we are delighted to have Proserv as our cover feature, and you can hear their CEO -Dave Larsson share his insights on their recent contract wins domestically and internationally as well as their plans for the year ahead. Neil Gordon - CEO at Subsea UK shares his thoughts the opportunities within the Blue economy and we also hear from Hiretech, Spectis Robotics, Viewport3 and Quanta-EPC.

The rest of this monthâ&#x20AC;&#x2122;s magazine features our regular reviews of the Energy sector in the North Sea, Europe, the Middle East, the US and Australasia along with industry analysis and project updates from Rystad Energy and the EIC. Thanks again to our readers and please join us for our online Subsea panel session on February 18th in partnership with Subsea UK.

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02 4

COVER FEATURE

SUBSEA INNOVATORS TARGETING NEW OPPORTUNITIES

Dan Hyland, Operations Director at OGV Energy speaks to Davis Larssen, CEO, Proserv Controls, about his company’s unique subsea solutions and his plans for developing disruptive technology-driven products and services.

“You can’t stand still as a technology company. Renewable energy is key to future power generation and we have to be right in that conversation.”

Davis Larssen, CEO, Proserv Controls

“Encouraging”, “robust” – these aren’t necessarily the words you’d expect a senior executive to be using when describing their business’s trajectory through the challenges of 2020, but this is how Davis Larssen, the CEO of Aberdeen based controls technology company Proserv Controls, chooses to summarise his firm’s experience.

But subsea controls represent the engine room of Proserv’s revenue generation with its innovative Artemis 2G (A2G) subsea electronics module (SEM) and its augmented controls technology, or ACT, providing transformative solutions to operators increasingly wrestling with unreliable and obsolete equipment. Larssen references the impact of the last downturn as a catalyst for a new attitude within the industry.

Larssen joined Proserv more than a decade ago and he has certainly seen some ups and downs during that time: from the global downturn of 2014-15, which ultimately led to the company’s recapitalisation in 2018, to a proactive realignment in 2019 which enabled the wider Proserv Group to gravitate towards “our core skills, what we do best”, and a leaner, more nimble framework which has helped its journey through the past year.

“A methodology based on getting more for less, maximising assets, prioritising operational excellence, has gained traction in company boardrooms. This is the template for a smarter approach to performance. Proserv’s technology reflects that philosophy perfectly – our solutions are entirely aimed at extending life of field, increasing reliability and offering affordable means of undertaking extensions to ramp up production and profitability.”

The company consists of two global-facing divisions: the larger Proserv Controls, with a diverse array of topside and subsea offerings, and Gilmore, a Proserv Company, a growing Houston based provider of cutting-edge flow control solutions such as critical service valves and regulators. David Currie, a 30-year industry veteran with senior managerial experience on both sides of the Atlantic, oversees the business as its Group CEO.

Proserv’s A2G SEM can be configured to co-exist with any original equipment manufacturer’s (OEM) legacy control system

Team effort Larssen’s Proserv Controls secured project orders of over $80mn through 2020, despite the context of the pandemic, with $27mn booked in Q4 alone, as its respected subsea controls business landed several sizeable seven figure deals towards the turn of the year. This was alongside significant service wins across all offerings, as the organisation demonstrated its resilience to market conditions. Larssen is quick to emphasise the “team effort” behind that success: “Considering the uncertainties that all businesses have had to cope with, we’re very pleased with the extent of our contract wins over the past year and every single one of our offerings has played its part, right across the world. From our Aberdeen based sampling team landing strategically important deals in the Middle East to our IWOCS specialists working hard to cement a growing support relationship with a supermajor in the North Sea.”

www.ogv.energy I February 2021

Eradicating obsolete controls Proserv’s A2G SEM can be configured to co-exist with any original equipment manufacturer’s (OEM) legacy control system and, according to Larssen, this has been “ game-changing” for customers. He explains that typically operators can encounter reliability issues with their subsea control modules within just five years of deployment, and when they seek support from their OEM, they often find their system is no longer adequately supported, as a new upgraded version has been released in the intervening years.

Industry analysis backs up Larssen’s view, with a 2020 report of subsea equipment and service suppliers performance by Kimberlite Oilfield Research revealing that almost a third of all current subsea controls purchases are to either replace or retrofit an existing system. Proserv’s CEO remarks:

“Operators want to optimise performance, not be weighed down by increasingly obsolete, inefficient electronics. This is a major issue and we are finding more and more customers utilising the backwards compatibility of our technology to turn around failing systems. “We can slot our upgraded SEM into the OEM’s original module, extend functionality, offer enhanced data rates on the powerline and ultimately enhance performance. We are fast becoming the number one team to call for retrofits.” Larssen describes Proserv’s technology as “disruptive”, as the eradication of the constraints of obsolete subsea infrastructure opens up “a new perspective” on the potential for field extension and maximising returns.

TEXT

A Proserv technician conducting a maintenance check

Planning expansion Proserv hopes to push its subsea controls offering ever further into the crosshairs of the majors, but the firm is already a leading global provider to independents seeking to boost output on brownfield assets. Larssen sees potential for growth right across the spectrum of his company’s capabilities, with its IWOCS team a case in point:

03 5

Name of Image Description of image

“With our manufacturing capability in Dubai for any chronic failures, we can also engineer a solution for a client. We want to see this service blueprint replicated in other parts of the Arabian Gulf and beyond.” The significance of the ADNOC tie-up has seen the service team move to an upgraded regional HQ, which can also act as a support base to multiple Proserv teams active in the Middle East and North Africa.

Disruptive new solutions Harnessing its capacity for engineering innovative technological solutions, Larssen says Proserv has established a five-year technology roadmap to push forward with the creation of disruptive products and services, including an exciting move into offshore wind to play a role in the energy transition.

“The pandemic and the weak oil price have generated headwinds for all service providers but, despite this, in 2020 we made a significant investment in new IWOCS spreads for our Aberdeen and Houston facilities.

“You can’t stand still as a technology company. Renewable energy is key to future power generation and we have to be right in that conversation. We have recently signed strategic alliances with Synaptec, a power system monitoring expert, and Intelligent Plant, an award-winning software engineering firm.

“The new kit acquired for Scotland is DNV GL rated and NORSOK certified. It will allow us to meet the stringent requirements of working in Norwegian waters, while easing our high utilisation levels.

“Our initial goal is to collaborate on inventive and sophisticated solutions focused on improved condition monitoring of assets, combining our expertise around controls, with the specific skills of our partners.”

“Some of the new kit acquired in the US will enable us to make a strategic move into deepwater IWOCS, primarily in the Gulf of Mexico, as we can readily access our local team of service technicians.”

Larssen states that a “sea change” in subsea cable health monitoring at offshore windfarms is moving forwards positively alongside Synaptec and BPP Cable Solutions, while a recent joint press announcement alongside Intelligent Plant referenced disruptive new business models around data access and interpretation.

Just as the impact of Covid-19 was first being felt globally last spring, Proserv’s Abu Dhabi based topside services business earned a major multi-year service support deal from the UAE’s national oil company ADNOC. Larssen states this substantial win is testament to the dedication of his Middle East team, which has built a strong relationship with this vast producer over several years. “We have a great service template in the Middle East. We can offer local knowledge and a rapid response. Allied to that, we have impressive bandwidth – we are known for our large installed base of legacy equipment in the region, which means we are agile when it comes to maintenance support and are totally OEM agnostic – we can work on any kit.

Proserv’s Artemis 2G (A2G) subsea electronics module “Take our measurement and metering team for instance. This past year, they also moved to a new Measurement Centre of Excellence in Cumbernauld, which will act as an HQ for their operations, particularly in the North Sea and Norway, but the facility in Abu Dhabi can provide a regional hub for the significant work they’ve been doing in Libya recently.”

“We have demonstrated through the ingenuity of our controls capabilities we can deliver unique, market-driven solutions that add value and improved performance to our customers’ assets and systems. “As we move into 2021 and beyond, one of our goals is to drive digital technologies, such as machine learning and enhanced data analytics, into multiple products, to enhance the functionality of our offerings right across the board, from subsea through to topside, and keep us at the cutting edge of innovation and development.”

Supporting clients in drilling, production and decommissioning throughout the lifecycle of their assets to maximise operational performance and efficiency. Learn more at: www.proserv.com

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MEMBER'S FEED

Industry leader Nucore Group announces end of year results and strong focus for 2021 Nucore Group, a specialist engineering company providing integrated engineering solutions in hazardous environments, has announced ambitious growth plans for the coming year, as portfolio companies Oteac and HVAC & Refrigeration move to now operate within the single Group entity.

John Lawrie Decom Completes Buchan Alpha Decommissioning for Ocean Kinetics Ltd John Lawrie Decom, part of John Lawrie Metals Ltd, the metal recycling experts, has completed the final stages of the Buchan Alpha decommissioning project. Following extensive engineering planning and analysis in order to determine the safest and most efficient methodology, John Lawrie’s experienced decommissioning team worked to downsize the four pontoon structures and associated steelwork, processing 2,841 tonnes of steel for recycling in just 37 days and 1,628 manhours.

THREE60 Energy makes senior appointment to drive business growth THREE60 Energy, the global energy services group, has bolstered its team with the appointment of Matthew Christie as Business Development Director for its Engineering, Procurement, Construction and Commissioning (EPC&C) service line.

www.ogv.energy I February 2021

Dales Marine Services to expand workforce to support a major new contract Dales Marine Services Ltd, a leading ship repair and maintenance company based in Scotland, announces a new 4-year contract with Caledonian MacBrayne (CalMac) for 19 vessels.

Solutions for complex handling, lifting & rigging challenges! Despite the backdrop of a challenging business environment Safelift Offshore have continued to invest in the expansion of the company’s Design & Engineering resources, which complement & enhance their proven manufacturing expertise developed over 25 years in business. Perhaps, at this time more than ever due to reduced manning levels & diminished industry knowledge, Safelift Offshore are supporting their customers by delivering safe and effective engineered solutions through concept, design, build, test and supply.

Aberdeen offshore training consultancy stays ahead of the game with new industry-approved training programmes Aberdeen based training and competency consultancy Ann McRobb Associates is set to deliver a series of in-house training programmes which will revolutionise the way oil and gas sector professionals gain industry certifications.

Automatic Self-Closing Valve (ASCV) Replacement AJT were contracted to design, supply and install a new, bespoke 96” (2438mm) Automatic Self Closing Valve (ASCV), manufactured and supplied by VAG-Group in Germany. This was to replace the existing 1950’s Glenfield valve and meet with current safety requirements. The existing valve actuator unit being water servo actuated from the penstock, whereas the new unit being failsafe twin oil actuated open and counterweight close.

New CEO takes helm at Centrifuges Un-limited as it diversifies and rebrands as OSSO OSSO, formerly Centrifuges Un-limited, the specialist fluid temperature control and separation solutions provider, has appointed James Scullion as CEO to spearhead the company’s international growth. The rebrand has taken place at an important juncture for the company as it aims to deliver an ambitious growth plan, expanding its oil and gas presence on-and-offshore, whilst also broadening into wider energy and industrial markets.

Bilfinger Salamis launches new logistics facility marking long-term investment in north east Leading integrated maintenance, modifications and services contractor Bilfinger Salamis UK has opened a new 27,000 sq. ft. operations and logistics site in Aberdeen, marking a long-term commitment to the region and UK energy market.

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ENERGY NEWS

FEBRUARY 2021

UK NORTH SEA

Energy Review By Tsvetana Paraskova

The impact of Brexit, the road to net zero, expectations for 2021, and company updates on field developments marked the end of 2020 and the beginning of 2021 in the UK oil and gas industry.

The Oil & Gas Authority submitted to Parliament in December a revised strategy featuring a range of new net-zero obligations for the UK oil and gas industry. The new strategy requires industry to operate in a way consistent with net zero ambitions, lowering production emissions and making serious progress on the solutions that can contribute to the UK achieving net zero. “The OGA believes the industry has the skills, infrastructure and capital to help unlock net zero solutions, such as Carbon Capture and Storage (CCS) and hydrogen production,” the authority said in a statement. “This is an important moment in the North Sea story, bringing a key sector of the economy into the overall net zero project,” Andy Samuel, OGA Chief Executive, said. Commenting on OGA’s strategy, OGUK Chief Executive Deirdre Michie said:

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“The development of a stable and supportive regulatory regime, which aligns with government ambitions is important and industry looks forward to working with the OGA to develop the underpinning guidance to its strategy proposals.”

Continues >

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OGUK also welcomed the deal outcome in the Brexit negotiations, with Michie saying “OGUK has consistently stated that a deal would be the best outcome for our industry.”

OGUK appointed in December 2020 three major business leaders to its board as the sector sharpens its focus on the industry’s recovery and meeting net zero targets. Jose Luis Muñoz, CEO of Repsol Sinopec Resources UK Limited, Andy Hessell who leads Kellas Midstream and has more than 30 years’ experience in the UK energy industry, and Mikki Corcoran, Managing Director of Schlumberger Europe, have joined OGUK’s board.

This year will likely see a rise a modest rise in UK offshore investments, if oil prices average around $50 per barrel, Westwood Global Energy Group said in a report in December. Development activity offshore the UK is expected to pick up in 2021, with 10 oil and gas fields expected to start up operations, with combined reserves of around 200 million barrels of oil equivalent (mmboe), plus 15 fields progressing towards project sanction with reserves of around 375 mmboe, according to Westwood Energy. If all developments progress as planned, UKCS production could increase to 1.71 million boepd in 2022 from an expected output of 1.64 million boepd in 2021, Emma Cruickshank, Head of NW Europe at Westwood, said. Capital expenditure (capex) on UKCS oil and gas field development is estimated at US$4.0 billion this year, slightly up compared to US$3.8 billion last year, mostly due to deferral of work from 2020 to 2021, such as the completion of the Tolmount and Finlaggan projects, and a ramp-up of development activity, according to Westwood’s Cruickshank. Capex on producing assets is set to account for 57% of all expenditure, fields under development would represent 27%, and the remaining 15% of capex is expected to come from fields that are expected to be sanctioned in 2021. In addition, 33 companies operating in UKCS are expected to spend US$1.5 billion on decommissioning 29 hubs this year, Westwood reckons. The UK oil and gas industry has cut its carbon intensity by 15% since 2013, thanks to upgrade and optimisation of operations through technologies such as digital optimisation and predictive analytics, Wood Mackenzie’s Vice President, Upstream Consulting and Supply Chain Lead, Malcolm Forbes-Cable, said in a report. In order to further reduce their carbon footprint, North Sea operators should focus their attention and investment on platform electrification, mitigation of flaring and venting, mitigation of methane leaks, and subsea systems, according to WoodMac. The Scottish Government’s Annual Energy Statement 2020 showed in December that the oil and gas sector was worth an estimated £9 billion in gross value added (GVA) to Scotland’s economy in 2019, just before the 2020 oil price collapse. The GVA from oil and gas in 2019 represented 5.1% of total Scottish gross domestic product (GDP). “The need for a Just Transition that supports sustainable economic growth and jobs is greater than ever, given the impacts we are seeing on the oil and gas sector and its supply chain, and the need to retain the skills and talent of those facing redundancy and to rechannel their expertise into supporting the energy transition,” Paul Wheelhouse, Minister for Energy, Connectivity and the Islands, said, commenting on the latest developments after COVID-19 in the foreword to the report.

www.ogv.energy I February 2021

“The diverse experience and knowledge that José, Mikki and Andy bring to the OGUK Board will be a great asset as our industry continues to tackle a challenging landscape of low commodity prices and the coronavirus pandemic, while at the same time seeking to support the UK’s cleaner climate ambitions as we look to 2021 and the challenges and opportunities it will bring,” said OGUK’s chief executive Deirdre Michie. In company news

OGUK, published its Economic Report 2020, which showed that oil and gas produced in the UK would continue to support energy security in the decades to come but as part of a changing and cleaner energy mix.

Premier Oil’s shareholders voted on 12 January in favour of the proposed merger with Chrysaor. Premier Oil continues to expect the transaction to complete by the end of the first quarter of 2021. The deal remains subject to, amongst other things, formal approval by the company’s creditors and sanction by the Scottish Court of the Scottish restructuring plans in respect of the Company and Premier Oil UK Limited. INEOS completed on 1 January the acquisition of bp’s global Aromatics & Acetyls business for US$5 billion, a transaction announced at the end of June 2020. The acquisition consists of 15 sites across the world, 5 in the Americas, 2 in Europe, and 8 in Asia, as well as 10 leading joint ventures. “We are delighted to have been able to acquire these top-class businesses from BP, extending our position in global petrochemicals and providing good scope for expansion and integration with our existing business,” said Sir Jim Ratcliffe, founder and chairman of INEOS. SSE plc agreed at the end of December to sell all of its interests in its portfolio of gas exploration and production (E&P) assets to Viaro Energy via its subsidiary RockRose Energy Limited for £120 million. The portfolio includes non-operational equity shares in more than 15 producing fields in three regions in the North Sea: the Easington Catchment Area, the Bacton Catchment Area, and the Greater Laggan Area. “We have said for some time that gas exploration and production assets are inconsistent with our future ambitions and vision to be a leading energy company in a net-zero world,” Gregor Alexander, Finance Director, said. Glacier Energy, a provider of specialist products, services and engineering solutions for energy infrastructure, said in December it had won a contract worth around £1 million by PBS to provide export gas coolers for Total Exploration and Production UK’s (TEPUK) North Alwyn Platform in the North Sea. i3 Energy has relinquished UKCS Licence P.1987 after it had been evaluated as sub-commercial by i3 and in an 'independent competent person' report and as such does not represent a viable commercial development, i3 Energy said on 4 January. Aberdeen-based Drillmar Resources said it had entered into a strategic alliance with V.Ships Offshore, expanding its global recruitment and crew management capabilities.

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UK North Sea with two one-year options to extend, will see Oceaneering supply integrity management services covering pressure systems, structural, pipeline, erosion management and offshore inspection services. In addition, Oceaneering will work closely with Stork which will deliver fabric maintenance and scaffolding services for Cygnus.

“With access to an international offshore marine service offering, the alliance will support us in extending our global footprint, while V.Ships Offshore will add further specialised Drilling and Well Services capability to their portfolio,” Drillmar Resources said. Shell has postponed the marine 3D seismic survey over the Resolution and Endeavour gas discoveries, the minority partner in the licences, Egdon Resources, said in early January. Initially, the survey was planned for Q1 2021, but it has now been postponed and is expected to be acquired in February 2022 rather than Q1 2021. A few days later, Egdon Resources said the Wressle Oil Field Development continued to be on track for first oil by the end of January. Boskalis announced on 5 January the acquisition of all the shares of Rever Offshore’s subsea services business. Rever Offshore offers a broad range of solutions in the area of subsea construction, inspection, repair and maintenance. Neptune Energy awarded on 12 January integrity management and fabric maintenance contracts for its operated gas production platform Cygnus in the UK Southern North Sea, to Oceaneering and Stork, for around US$6.5 million. The three-year contracts,

Maersk Drilling said on 13 January it had been awarded a contract from Spirit Energy for the harsh-environment jack-up rig Maersk Resolve to drill one development well at Grove North East in the UK North Sea. The contract is expected to begin in March 2021, with an estimated duration of 131 days. Hurricane Energy plc said in its trading and operations update on 14 January that production in line with expectations, a December lifting from the Lancaster field, and higher oil prices combined to deliver a US$19 million increase in net free cash at year-end compared to end-November 2020. “As previously reported, we are currently engaging with our stakeholders on a proposed development plan for Lancaster and its associated funding, in order to maximise the potential value of our assets,” Hurricane CEO Antony Maris said. Wood plc’s trading update on the same day showed growth in activity in renewables and resilient performance in 2020. “Looking ahead, while near term headwinds remain in 2021, we see significant opportunities from the accelerating pace of energy transition and will optimise our operating model to unlock stronger medium term growth,” chief executive Robin Watson said in a statement.

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BRENT OIL PRICES OVER THE YEARS February review

- BRENT OIL PRICE 2020 - $55.66 Oil falls for fifth day on demand concerns as coronavirus spreads. Oil prices fell for a fifth day in February to their lowest since January 2019 as a growing number of new coronavirus cases outside of China fuelled fears of a pandemic which could slow the global economy and lower crude demand. In the five trading sessions, Brent has dropped 10.6%, while WTI has declined 10.4%, their biggest five-day percentage losses since August 2019.

YEARS AGO

- BRENT OIL PRICE 2016 - $32.18 The dramatic crash in oil prices has returned with a vengeance. U.S. crude futures dropped as much as 5% in February, driving prices below $27 for the second time in recent weeks. It settled at $26.21, the lowest point since 2003. The steady decline is creating a widespread headache for financial markets. It's causing energy companies' profits to plunge, raising worries about the prospect of bankruptcies in the oil sector and spooking investors about global growth. In total, crude oil has plunged an incredible 75% from its June 2014 peak of almost $108.

W W W.O G V. E N E R G Y

YEAR AGO

YEARS AGO

- BRENT OIL PRICE 2011 - $103.72 Wood Group sells Well Support division to GE. Wood Group’s Well Support division has three business platforms: ESP (electric submersible pumps), Pressure Control and Logging Services. The Well Support division had 2010 revenues of US$947 million and EBITDA of US$166 million, up 16% and 55% respectively over 2009 levels. The deal will make GE a key player in enhanced oil recovery by adding electrical submersible pumps (ESPs) to the growing GE portfolio of drilling and production solutions.

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Risk Management & Wellbeing

Digitalisation in Energy

Decommissioning in the North Sea

ENERGY NEWS

By Tsvetana Paraskova

Europe

Energy Review

Europe’s energy news at the end of 2020 and the start of 2021 featured oil and gas discoveries and developments, major milestones in renewable energy in the UK, and plans for accelerating the deployment of green hydrogen and other forms of clean energy.

Renewables The Association for Renewable Energy and Clean Technology (REA) and a coalition of industry groups urged the UK Government at the end of December to create a level playing field for home energy storage. The home energy storage industry calls for the Government to reverse the rise in VAT on home energy storage from December 2019. The coalition asks that VAT rates on home energy storage be lowered to 5%, in line with domestically used electricity and heating from fossil fuels. It also calls for a temporary incentive to encourage householders to install home energy storage, such as inclusion in the Green Homes Grant or a scheme equivalent to grants available for EV ownership, or EV charging equipment. Statfjord Øst oil field - Source: Equinor

Oil & Gas Last year was the year with the world’s fewest concluded licensing rounds of the 21st century, Rystad Energy said in an analysis in December. Awarded acreage was the lowest since 2002 at just over 324,000 square kilometres, while Norway was global leader in total licensed area in 2020, according to Rystad Energy. In 2021, the number of licensing rounds is not expected to increase by much either, while total awarded acreage awarded will likely remain below 500,000 square kilometres. ConocoPhillips announced at the end of 2020 a significant oil discovery in the Norwegian Sea. Preliminary estimates peg the size of the discovery at between 75 million and 200 million barrels of recoverable oil equivalent. “This discovery marks our fourth successful exploration well on the Norwegian Continental Shelf in the last 16 months,” said Matt Fox, executive vice president and chief operating officer. Also offshore Norway, Equinor and its partners decided to invest 3 billion Norwegian crowns

www.ogv.energy I February 2021

(£258 million/US$350 million) in the North Sea Statfjord Øst field to improve recovery by 23 million barrels of oil equivalent. Under the project, four new wells will be drilled from existing subsea templates and modifications on Statfjord C will be made. The plan also includes a new pipeline for gas lift. The decision will boost the recovery factor on Statfjord Øst to 62% from 56%, and will help extend the life of the Statfjord C platform and the Statfjord Øst field towards 2040, Equinor said. Offshore Norway, Aker BP and the Skarv partners – Equinor, Wintershall Dea, and PGNiG – decided in December to develop the Gråsel discovery in 2021. Gråsel holds a total of around 13 million barrels of oil equivalent. The oil and gas production will utilise available capacity on the existing production vessel (FPSO) on the Skarv field. Total investment costs for the Gråsel project are around 1.2 billion Norwegian crowns (£103 million/US$140 million). The Shah Deniz consortium, in which bp is the operator with a 28.8-% interest, said on 31 December it started commercial gas deliveries to Europe from the Shah Deniz gas field in the Caspian Sea offshore Azerbaijan via the final section of the Southern Gas Corridor (SGC), the Trans Adriatic Pipeline (TAP).

Christmas Day 2020 was the first ever coal-free Christmas Day for Great Britain’s electricity, National Grid ESO said at the end of December. Last year as a whole was the greenest year on record for Britain’s electricity system, with all-time highs for wind and solar generation and the longest-ever coal-free run of nearly 68 days between April and June 2020. Scotland published at the end of December a Hydrogen Policy Statement aimed at building a new energy sector. Scotland will give the low-carbon hydrogen sector £100 million over the next five years as part of the support for recovery and Scotland’s just transition to net zero. Scotland is set to become a leading hydrogen nation, with an ambition to generate 5 GW of renewable and low-carbon hydrogen by 2030 – enough to power the equivalent of 1.8 million homes, the Scottish Government said. The green hydrogen industry has the potential to be worth up to £25 billion a year to the Scottish economy by 2045, according to economic impact estimates from the government. The leading UK oil and gas industry body OGUK welcomed Scotland’s Hydrogen Policy Statement, saying that this commitment emphasises the need for a sector deal.

Europe

In renewable energy development news, GE Renewable Energy has been confirmed as the preferred turbine supplier for Dogger Bank C, the 1.2 GW third phase of the 3.6 GW Dogger Bank wind farm. The project, a 50/50 joint venture between SSE Renewables and Equinor, will become the world’s largest offshore wind farm when complete in 2026. The Port of Tyne has signed an option agreement with Dogger Bank Wind Farm, successfully concluding the preliminary phase of a development to build the operations and maintenance (O&M) base of the world’s largest offshore wind farm. The UK government said on 31 December it had given development consent to the application for Hornsea Project Three offshore wind farm off the coast of Norfolk, which will have an approximate capacity of up to 2.4 GW. ScottishPower said at the end of December it had created a new business division dedicated to delivering green hydrogen.

“While it’s encouraging to see investments like this, today’s Hydrogen Policy Statement reiterates the importance of securing a sector deal for our industry. We will continue to work at pace with the Scottish government to ensure that our supply chain is supported throughout the transition, securing jobs and the energy supply, whilst supporting our energy communities,” OGUK Sustainability Director Mike Tholen said. A new report from the International Renewable Energy Agency (IRENA) showed in December that hydrogen produced with renewable electricity could compete on costs with fossil fuel alternatives by 2030, thanks to declining wind and power costs, improved performance, and economies of scale for electrolysers. Currently, the combination of offshore wind and green hydrogen is still prohibitively expensive, Rystad Energy said in a report in January 2021. Rystad Energy looked at the economics of blending green hydrogen production with offshore wind development in the North Sea, and found that this hybrid approach offers promising elements, but the high costs – at least for now – remain a show-stopper.

“We can take our expertise and knowledge in the development and operation of renewables and apply it to the roll-out of green hydrogen in areas where electrification can’t reach,” said Barry Carruthers, ScottishPower’s Hydrogen Director.

Scotland is set to become a leading hydrogen nation, with an ambition to generate 5 GW of renewable and low-carbon hydrogen by 2030

“Offshore hydrogen production may become more interesting if a higher carbon tax is imposed on grey hydrogen production. This would force existing hydrogen manufacturers to shift more of the production to “blue” hydrogen (grey hydrogen coupled with carbon capture and storage), which in turn would make green hydrogen projects more cost-competitive,” said Petra Manuel, energy research analyst at Rystad Energy. Eight leading energy companies – bp, Eni, Equinor, Galp, Occidental, Repsol, Shell, and Total – said in December 2020 they had developed and agreed Transition Principles as a collaborative platform for the energy transition. The six principles the companies embraced include public support for the Paris Agreement goals; industry decarbonisation; energy system collaboration; development of carbon sinks; transparency in disclosure related to climate change risks; and report information about their memberships of main industry and trade associations and their alignment with the companies’ key climate advocacy and policy positions.

Christmas Day 2020 was the first ever coalfree Christmas Day for Great Britain’s electricity, National Grid ESO said at the end of December.

Ecotricity has signed an agreement that enables the production and sale of geothermal electricity for the first time in the UK – generating steam more than 3 miles beneath Cornwall to power homes with renewable energy. The power plant is expected to be fully operational by early 2022. “Geothermal is a really exciting form of energy that is currently untapped in the UK. We’re pleased to be part of this project and to add the power to our customer’s energy mix. It has a big role to play in our plans to decarbonise the country,” said Dale Vince, Founder of Ecotricity. French companies Total and Engie have signed a cooperation agreement to design, develop, build, and operate France’s largest renewable hydrogen production site at Châteauneuf-les-Martigues in the Provence-Alpes-Côte d'Azur South region. The site will be powered by solar farms with a total capacity of more than 100 MW, while the 40 MW electrolyser will produce 5 tonnes of green hydrogen per day to meet the needs of biofuel production at Total’s La Mède bio-refinery. Total and Engie plan to start production of green hydrogen at the site in 2024, subject to obtaining EU and French subsidies, for which they have already applied. After becoming a major operator in offshore wind, Equinor wants to explore opportunities of offshore solar power. Equinor, together with Moss Maritime, looks to start testing offshore solar by building a floating pilot plant off the island of Frøya near Trondheim in the late summer of 2021. This will be the world’s first pilot plant for floating solar power in rough waters. “If we succeed here, we can succeed anywhere,” says Hanne Wigum, the head of the Equinor technology unit focusing on wind and solar power.

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Industry outlook improves as prices rise

Cautious optimism returned to the US oil and gas industry at the end of 2020 and the beginning of 2021, as oil prices rallied in the wake of good news about vaccine developments.

S oil and gas activity picked up from the lows seen in the spring of 2020, when operators curtailed as much as 2.5 million barrels per day (bpd) of oil production in response to the crash in oil prices. The outlook of oil and gas firms improved in the fourth quarter of 2020 and uncertainty about the future subsided. Meanwhile, the price West Texas Intermediate (WTI) rose in early January to above $50 a barrel—the first time the price of the U.S. benchmark crude oil has exceeded the $50 mark since February 2020, just before the pandemic forced widespread lockdowns around the world.

US oil & gas firms more optimistic after worst of 2020 shock Oil and gas industry activity jumped in the fourth quarter 2020, the Dallas Fed Energy Survey of oil and gas executives showed at the end of December. The business activity index among energy firms in the Eleventh District—which comprises Texas, northern Louisiana, and southern New Mexico—moved into positive territory, rising from -6.6 in Q3 to 18.5 in Q4. This was the first positive reading for the business activity index since the first quarter 2019, and the increase was driven by both exploration and production (E&P) and oilfield services firms, the survey found.

“E&P and supplier consolidation needs to increase to reduce substantial costs from the system,” an E&P executive said in comments in the special questions of the Dallas Fed survey. The Kansas Fed Fourth Quarter Energy Survey also showed increased drilling and business activity in the Tenth District, which includes the western third of Missouri, all of Kansas, Colorado, Nebraska, Oklahoma, Wyoming, and the northern half of New Mexico. Activity expanded moderately in the fourth quarter of 2020, although it continued to lag year-ago levels, the survey found. On average, firms said they needed an oil price of $56 per barrel for a substantial increase in drilling, with a range of responses of $45 to $80 per barrel.

Too tempted to boost production? The price of the U.S. crude oil benchmark WTI topped $50 per barrel after Saudi Arabia announced on 5 January a surprise extra production cut of 1 million bpd for February and March. As of the middle of January, the highest oil prices in eleven months had analysts wondering whether the U.S. shale industry would have to willpower to resist spending too much on new wells.

The price West Texas Intermediate (WTI) rose in early January to above $50 a barrel.

Oil and gas production in the Eleventh District area, which includes the top-producing shale basin, the Permian, stabilised in Q4 after three quarters of declines. The index for capital expenditures by producers moved into positive territory at 12.5, up from -16.4 in the third quarter, pointing to an increase in capital spending. In the oilfield services sector, the equipment utilisation index pushed into positive territory, for the first positive reading since the second quarter 2019, the Dallas Fed said. Moreover, the six-month outlook in the oil and gas sector improved notably in Q4, indicating a stark recovery from the significantly negative readings in first and second quarters of 2020. U.S. oil and gas firms also expressed less uncertainty around their outlooks, the survey showed. As far as capital spending in 2021 is concerned, more executives expected their firm’s capital spending to increase rather than

www.ogv.energy I February 2021

decrease. Most E&P executives—72%—said they expect their firm will have access to capital from non-bank sources over the next 12 months.

Saudi Arabia’s 1-million-bpd “gift” to the market will raise the cash from operations (CFO) of shale producers in the Permian Midland, Permian Delaware, Eagle Ford, Bakken, and DJ basins by 32% in 2021, allowing them to increase their activity spending this year, Rystad Energy said in an analysis in early January. Should WTI prices average $50 a barrel in 2021, the shale industry’s combined CFO is set to rise to $73.6 billion, up from an estimated $55.7 billion in 2020. “The production cuts from OPEC+ have definitely fulfilled their purpose by balancing the market and supporting higher oil prices. At the same time, higher oil prices have reactivated the US tight oil industry. With the current budgeting season and improved cash flows, Rystad Energy expects to see a further increase in US tight oil activity,” said Espen Erlingsen, head of upstream research at Rystad Energy.

So far, U.S. oil producers look intent on honouring, this time around, pledges to use additional cash to pay down debt and increase shareholder returns, rather than hasten to boost drilling activity. “Higher crude prices could also provide an incentive to increase production by the US shale industry, which saw the biggest fall in output last year. For now though, companies seem committed to pledges made to keep production flat and instead use any price gain to pay down debt or to boost investor returns,” the International Energy Agency (IEA) said in its monthly Oil Market Report on 19 January. “If they stick to those plans, OPEC+ may start to reclaim the market share it has steadily lost to the US and others since 2016,” the Paris-based agency noted. Wood Mackenzie, for its part, expects cautious growth in U.S. shale activity, and sees tight oil production continuing to decline into the second half of the year. The consultancy, however, doesn’t rule out the possibility that the industry could find higher prices too tempting to resist. “The coming year will reveal whether management teams can resist that temptation,” said Ed Crooks, Vice-Chair Americas at WoodMac.

U.S. More consolidation ahead?

Australia

By Andy Hogan

This year will also reveal whether the U.S. oil industry will continue the consolidation that picked up pace in the fourth quarter of 2020. At the end of last year, ConocoPhillips announced it was buying Permian-focused Concho Resources, and Pioneer Natural Resources acquired Parsley Energy. These two were the biggest merger and acquisition (M&A) deals in Q4 2020, driving the quarter’s total value to $27 billion, the third most active quarter by value since oil prices lost their footing in late 2014, energy SaaS and data analytics company Enverus said in early January. “The fact that three of the leading Permian independents — Concho, Pioneer and Diamondback — each participated in a deal implies a recognition by the industry that scale is vital for companies to remain relevant going forward,” Enverus M&A Analyst Andrew Dittmar said. Going forward, consolidation in 2021 could be limited by the number of attractive merger partners left at the end of a very active year, Dittmar noted. Enverus’ latest FundamentalEdge report from 19 January acknowledges that 2021 will still see bumps on the road to recovery of global oil demand, especially in the first quarter with lockdowns and still rising COVID-19 cases. “And while the second half of 2020 was painful financially, the fourth quarter included muchneeded consolidation within the U.S. shale industry, production curtailments and well-placed hedges kept many balance sheets afloat,” said Jesse Mercer, senior director of Crude Market Analytics at Enverus. According to Mercer: “Next up, will be completing drilled but uncompleted wells (DUCs) and a continued focus on improved efficiencies, lowering emissions, free cash flow and sustainable production growth. Additional mergers and acquisitions are still likely, all which lead to a healthy recovery for America’s oil and gas industry.” The Oil Industry and The New U.S. Administration Hours after taking office, President Joe Biden’s Administration suspended for 60 days oil and gas permitting on federal lands and waters, as part of a review into the policies of the previous administration and the push to green energy to fight climate change.

The move drew criticism from the oil industry. “Restricting development on federal lands and waters is nothing more than an ‘import more oil’ policy. Energy demand will continue to rise— especially as the economy recovers—and we can choose to produce that energy here in the United States or rely on foreign countries hostile to American interests,” American Petroleum Institute (API) President and CEO Mike Sommers said. “We stand ready to engage with the Biden administration on ways to address America’s energy challenges, but impeding American energy will only serve to hurt local communities and hamper America’s economic recovery,” Sommers noted.

“The View from Down Under” Early New Year is traditionally a quiet time in these parts as folk take their well-earned summer breaks, after the usual slow start in January people are now drifting back to work and the buzz in the Central Business District in Perth returns to near normal. With just 1 rig active off the ANZ coasts at the moment it is expected that by end Q2 this year the active count will have risen to 6, with the possibility of a heavy well intervention vessel joining the offshore fleet before the end of the year. Decommissioning and well abandonment continue to have high visibility. The Australian regulator NOPSEMA issued two directives to ENI Australia as 2020 drew to a close concerning 2 of their fields. The first concerns the Woollybutt field, off the North West Coast, which lies in 100m of water and ceased production several years ago.

being required only for existing producing and upcoming E&A and development wells, the remit was extended to all wells drilled in Commonwealth waters, which goes back to the 1960s. It is understood that any non-producing / suspended / partially abandoned well would not have its WOMP approved by NOPSEMA without firm plans to permanently plug and abandon that well. The WOMPs are on a 5-year cycle, so as 2021 begins many of these chickens will be coming home to roost. The second reason concerns the liquidation of Northern Oil and Gas Australia (NOGA) and the resulting vesting of the Corallina and Laminaria fields to the Federal Government (for details please refer to Sep 20 and Jan 21 issues). The liability to the Australian taxpayer to P&A the wells and decommission the field could exceed well over US$200m and has raised the profile of ultimate responsibility for the decommissioning of late life assets, especially when they change hands from the original owner. The possibility of a levy on the industry to cover this has been floated. It is believed this change in attitude to liability for decommissioning is one of the reasons why ENI, XOM and BHP recently withdrew from sale their respective assets off the NW and SE coasts.

There have been several phases of discussion and plans made by the local ENI entity since at least 2014 about abandoning the wells using a range of options from single hulled intervention vessels, heavy well -intervention vessels to drilling rigs. NOPSEMA have now directed that ENI must abandon the wells before end of 2021. The second concerns a decommissioning plan for the Blacktip Field off the NNW coast. Curiously, this gas field is still very much in production with 2 wells onstream since 2009 and firm plans to drill a 3rd well at some stage over the next 12 to 24 months. This reason for this stance by the regulator is believed to be twofold: In early 2016 new Well Operations Management Plan (WOMP) procedures were instigated by NOPSEMA. Instead of WOMPs

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Licences Awarded in the Energy Reform (Image: CNH)

Mexico

Exploration and Production

The Energy Reform saw over 100 licences assigned between 20152018 with 73 companies participating through various licencing awards in exploration, appraisal, field development and producing acreage onshore and offshore Mexico.

Exploration success kicked off in 2017 with the Zama discovery (2C: 670MMBOE) followed by Cholula (2P:78MMBBLS), Xaxamani 2 (2P: 35MMBBLS), Saasken (STOIIP: 200-300MMBBLS), Chinwol(2P: 123MMBOE) and Polok(2P: 193MMMBOE), in the offshore Salinas Exploration success Basins. Zama was subsequently kicked off in 2017 with appraised, and its Operator Talos the Zama discovery, Energy is currently carrying out its FEED evaluation and progressing followed by Cholula, unitisation of the field with PEMEX. Xaxamani 2, Saasken, Operators for the other exploration Chinwol, and Polok. discoveries (Murphy Oil, ENI, Hokchi Energy, Repsol) are planning appraisal programs within the next 2 years. Appraisal of existing PEMEX discoveries were successfully executed for the Amoca-Mizton-Tecoalli (AMT), Hokchi, Ichalkil-Pokoch and Trion fields respectively. ENIâ&#x20AC;&#x2122;s AMT(STOIIP:2.1 BBOE STOIIP) started early production from Mizton in 2019, less than 2.5 years from spudding its first appraisal well. Current production is at 15kbopd (Nov 2020) with the rest of the development (2 platforms at Amoca and another at Tecoalli utilising an FPSO) expected to be completed in 2021 with peak production expected around 100kboepd. Hokchi Energy started production of the Hokchi Field(2P: 177MMBBO, 54BCFG) in May 2020 with current production at 16kbopd(Nov 2020). In September 2020, SENER instructed Hokchi Energy and PEMEX to start the unitisation process of the Hokchi and Itta (2P 29MMBBLS; 18BCFG) fields. Fieldwoodâ&#x20AC;&#x2122;s Ichalkil-Pokoch has recently received approval of its modified development plan while Trion(2P: 319MMBBLS, 309BCFG) is expected to produce first oil mid-2025. In March 2020, the Operator BHP contracted McDermott to provide the pre-front-end engineering design (pre-FEED) services for a floating production unit (FPU) with peak production expected around 100kbopd.

www.ogv.energy I February 2021

Workovers, recompletions and drilling of new wells has increased production in existing onshore fields such as Santuario (14kbopd), Ogarrio (5.8kbopd) and Ebony (5kbopd) by Operators such as Perenco, Winershall Dea, Diavaz and Pantera. As existing fields continue to decline PEMEX prioritised 17 fields in the shallow water and onshore for development in 2020 which are currently producing 92KBOPD and 186MMSCFGPD. Over the past 5 years, both oil and gas production has been on the decline. Current oil production is at an average of 1.6 MMBOPD in which 55kbopd is a result of awards to private contracts from the energy reform. By 2025 production is expected to increase by at least 350kbopd from private contracts providing up to 25% of the country's production.

Trion Field, Perdido, northern Mexico Water Depth: 2,500 m 2P: 319MMBBLS, 309BCFG Companies: BHP(Op) and PEMEX First Oil expected mid-2025 Image: BHP

Hokchi Field, offshore Mexico Water Depth: 30m 2P: 177MMBBO, 54BCFG). Companies: Hokchi Energy and E&P Hydrocarbons and Services First Oil May 2020 Image courtesy CNH and Enrico Strocchi

Zama Field, offshore Mexico Water Depth: 170m 2C: 670MMBOE Companies: Talos Energy(Op), Wintershall Dea and Premier Oil Image: Premier Oil

Amoco, Mitzon Tecoalli fields, offshore Mexico Water Depth: 29m STOIIP: 2.1 BBOE Companies: ENI(Op) and Qatar Petroleum First Oil Mitzon 2019 Source: Cosco and CNH

Mexico Oil and Gas Production (Source: CNIH)

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MIDDLE EAST Energy Review

The highly-anticipated OPEC+ monthly ministerial meeting, numerous contracts, new oil and gas discoveries, and a pledge for emissions reduction from a major petroleum company were the biggest themes in Middle East oil and gas at the end of 2020 and the start of 2021.

By Tsvetana Paraskova

Saudi Arabia unilaterally moves to support market

OPEC+ moves to tighten oil market The ministerial meeting of the OPEC+ group decided on 5 January not to raise collective oil output by another 500,000 barrels per day (bpd) from February, as the leader of the non-OPEC group in the pact, Russia, was proposing. Before the start of the meeting, OPEC Secretary General Mohammad Barkindo said: “Amid the hopeful signs, the outlook for the first half of 2021 is very mixed and there are still many downside risks to juggle. We are only beginning to emerge from a year of deep investment cuts, huge job losses and the worst crude oil demand destruction on record.” Russia had insisted on another easing of the total oil production cuts, despite the soaring COVID-19 cases in Europe and the United States which had prompted major economies in Europe to reinstate lockdowns to fight the pandemic. Most other members of the OPEC+ coalition, however, were not in favour of boosting production amid expected weaker global oil demand in the first quarter of 2021. Saudi Arabia, OPEC’s top producer and de facto leader, was also in the ‘noincrease’ camp. In the end, after two days of discussions, the OPEC+ ministers decided to basically roll over the current cuts of 7.2 million into February after Russia agreed to back off its proposal that the group ease the cuts by 500,000 bpd in February. Russia, however, obtained a compromise win that let it lift its crude oil production by 65,000 bpd in February and by another 65,000 bpd in March. The only other OPEC+ member that is allowed to raise output is Kazakhstan, whose production will rise by 10,000 bpd in February and then by another 10,000 bpd in March. The quotas of all other members of the OPEC+ pact remain unchanged for February and March, according to the detailed cuts distribution document OPEC released at the end of the meeting.

www.ogv.energy I February 2021

At the end of the OPEC+ meeting, OPEC’s leader and the largest oil exporter in the world, Saudi Arabia, surprised analysts and the oil market by announcing it would cut its oil production by 1 million bpd beyond its quota under the deal, to support the oil market.

Saudi Arabia’s oil giant Aramco has discovered four new oil and gas fields in the Kingdom, Energy Minister Prince Abdulaziz bin Salman, said at the end of December.

Indeed, the Saudis supported oil prices which rallied after the announcement and within a week reached their highest level since February 2020. Saudi Arabia is also reportedly reducing its term contract oil supplies to refiners in Asia for February, officials at refineries have told Bloomberg.

Middle East deals & discoveries Saudi Arabia’s oil giant Aramco has discovered four new oil and gas fields in the Kingdom, Energy Minister Prince Abdulaziz bin Salman, said at the end of December. Non-conventional oil has been discovered in al-Reesh oil field, northwest of Dhahran, while nonconventional gas has been discovered at al-Minahhaz well, southwest of the giant Ghawar oil field, and at al-Sahbaa well, south of Ghawar. Aramco also struck oil at al-Ajramiyah Well No. 1, northwest of the city of Rafhaa in the Northern Borders Province. The discovery at al-Reesh field is especially important as it shows that it is possible to produce Arab extra light crude oil at the Tuwaiq Mountain Formation, the Saudi energy minister said, as quoted by the Saudi Press Agency. Saudi Aramco has also signed several deals with technology giants over the past month.

Middle East Saudi Aramco Development Company, a subsidiary of Aramco, said on 21 December it had teamed up with Google Cloud to offer high-performance, low-latency cloud services to enterprise customers in Saudi Arabia.

“Production start-up has been achieved in less than two years since Contract Signature and one year since the discovery announcement thanks to the fruitful and continuous cooperation with SNOC,” Eni’s chief executive Claudio Descalzi said.

“The future of Saudi Arabia’s business transformation and growth depends on its ability to successfully leverage cloud services,” Aramco Senior Vice President of Technical Services, Ahmad Al Sa’adi, said in a statement.

In Qatar, the top exporter of liquefied natural gas (LNG) in the world, Qatargas awarded in January a contract to McDermott International to deliver frontend engineering and design (FEED) work for Qatar Petroleum’s North Field South (NFS) project.

The Saudi state oil giant also signed a strategic alliance with SAP to expand the digitalisation of its Enterprise Resource Planning (ERP) systems. “The SAP ERP system will deepen the deployment of innovative IR4.0 technologies including cloud-based services, embedded analytics, mobility, machine learning, artificial intelligence, advanced analytics and Internet-of-Things solutions,” Aramco said. Finally, Aramco also set up a joint venture with industrial software company Cognite, creating a new company which will focus on digitalisation in Saudi Arabia and the broader Middle East and North Africa region. The joint venture will develop, distribute, and deploy end-to-end digital and advanced solutions for customers across industries, including oil and gas, power and utilities, manufacturing, and shipping. In the United Arab Emirates (UAE), the Abu Dhabi National Oil Company (ADNOC) signed in December a strategic framework agreement with ExxonMobil to explore joint technology research and development (R&D) partnership opportunities across the oil and gas upstream value chain. ADNOC and ExxonMobil will identify areas of mutual interest for conducting R&D and co-developing technology solutions that will help increase upstream operational efficiencies, strengthen health, safety and environment (HSE) management, and unlock business value. Initial areas identified include advanced non-metallic solutions, field testing and integrity management, smart reservoir management and well monitoring systems, and innovative emergency response systems. ADNOC also awarded the exploration rights for Abu Dhabi’s Offshore Block 3 to a consortium led by a unit of Italy’s Eni and PTTEP MENA Ltd., a wholly-owned subsidiary of Thailand’s PTT Exploration and Production Public Company Limited (PTTEP). “Despite volatile market conditions, we are making very good progress in delivering Abu Dhabi’s second competitive block bid round, underscoring our world-class resource potential and the UAE’s stable and reliable investment environment. We continue to welcome partners that share our vision to sustainably unlock value from our hydrocarbon resources for our mutual benefit, as we deliver on our 2030 strategy and enable long-term returns to the UAE,” said Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Group CEO. In another project of Eni in the UAE, the Italian company announced in early January production start-up from Mahani Field in the Sharjah Emirate. Eni and Sharjah National Oil Corporation (SNOC) began production from the Mahani field, located in onshore Concession Area B of the Sharjah Emirate.

In the United Arab Emirates (UAE), the Abu Dhabi National Oil Company (ADNOC) signed in December a strategic framework agreement with ExxonMobil to explore joint technology research and development (R&D) partnership opportunities across the oil and gas upstream value chain.

“For more than 30 years, McDermott has executed projects in Qatar's North Field, and we will leverage our experience and local resources to successfully deliver this project,” said Tareq Kawash, McDermott Senior Vice President, Europe, Middle East and Africa. Qatar Petroleum launched on 13 January its new Sustainability Strategy, establishing a number of targets aligned with the goals of the Paris Agreement. Qatar Petroleum is launching a plan to reduce greenhouse gas emissions by 2030. The company will aim to reduce the emissions intensity of Qatar’s LNG facilities by 25 percent and of its upstream facilities by at least 15 percent, and reducing flare intensity across upstream facilities by more than 75 percent. The strategy also includes Carbon Capture and Storage (CCS) facilities to capture more than 7 million tonnes per annum of CO2 in Qatar. “Qatar is the world’s largest LNG producer and, by implementing our Sustainability Strategy, we will play a decisive role in helping reduce the impact of climate change by implementing measures to curb emissions, produce LNG using the latest proven carbon reduction technologies, and compensating for residual emissions where necessary,” said the Minister of State for Energy Affairs and the President and CEO of Qatar Petroleum, Saad Sherida Al-Kaabi. In Bahrain, Italy’s Eni, via its environmental firm Eni Rewind, signed an agreement with the National Oil and Gas Authority (NOGA) to develop circular economy initiatives for the recovery of soil, water, and waste resources in Bahrain, where the Italian major has been present since 2019 as the sole owner and operator of the offshore exploration Block 1.

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Doosan Heavy Industries & Construction has signed an agreement with the government of North Jeolla/Jeollabuk-do province for the development of a 2.4GW offshore wind farm. Doosan will lead on the project's implementation as well as its maintenance and the supply of its turbines. The project is valued at 14 trillion won or roughly €10.5bn. Commissioning is scheduled for 2028.

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SOUTH KOREA Doosan Heavy Industries & Construction US$12.75bn

AUSTRALIA Santos US$3.6bn

INDIA ONGC US$232mn

NORWAY Equinor US$346mn

QATAR Qatargas US$1bn est.

Santos has announced a reduction of CAPEX on the Barossa field by around $1 billion, with the assumption that the FPSO will now be leased rather than acquired.

ONGC has issued expressions of interest (EoI) documents in the search for engineering consultancies able to carry out FEED studies for the decommissioning project. ONGC plans to carry out the decommissioning of at least five offshore platforms and other associated offshore infrastructure. The FEED studies are expected to take between 6 to 12 months to complete.

Equinor and its licence partners have decided to invest approximately $346 million in the Statfjord Øst field to improve recovery by 23 million barrels of oil equivalent.

Qatargas has awarded McDermott International a FFED contract for the North Field South (NFS) project.

BW Offshore has become the preferred bidder for the FPSO, with the FPSO scheduled for delivery in 2023.

www.ogv.energy I February 2021

Plans call for installation of a pipeline for gas lift, modifications on Statfjord C and drilling of new wells in 2022 - 2024. Production start is scheduled for 2024.

The contract scope includes the replication of five offshore wellhead platforms. The FEED contract will be executed from McDermott's Doha office and work will begin immediately.

WORLD PROJECTS

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4 7

8 5

3 9

USA Chevron US$5.7bn

OneSubsea has awarded Oceaneering a contract to supply 20,000 psi-rated subsea hydraulic junction plates and associated hardware for the Anchor uHPHT Field Development - Phase 1. Through the contract, Oceaneering will undertake the design, engineering as well as production of the hydraulic connection hardware. Oceaneering will also oversee the design and engineering of integrated flying lead assemblies and installation equipment.

FRANCE Engie US$2.4bn

ISRAEL Energean US$150mn

MALAYSIA Petronas US$1.5bn

Engie and Neoen have announced plans to build a 1GW Horizeo solar farm in France, which will include a 40 MW battery storage facility, a 10 MW hydrogen electrolyser and a data centre.

Energean has taken FID on its Karish North development.

Bids for the FPSO contract at the Limbayong field are due during January 2021.

Both companies will be contributing USD 1.2 billion (EUR 990 million) into the project.

First production is anticipated in the second half of 2023, with production from the first well expected to average just under 8.5 million cubic metres per day, or roughly 3 billion cubic metres per year.

WORLD PROJECTS SPONSORED BY

Topsides fabrication for the floater will have to be carried out within Malaysia and also potentially the construction of the turret.

www.the-eic.com

SUBSEA REVIEW

By Tsvetana Paraskova

Subsea Industry

Cautiously Optimistic for 2021

This year, the UKCS is expected to see more development activity with 10 oil and gas fields expected to be brought on stream with reserves of around 200 million barrels of oil equivalent (mmboe) and 15 fields progressing towards project sanction with reserves of about 375 mmboe. If all of these developments progress as planned, the UK’s production could increase to 1.71 million barrels of oil equivalent per day (boepd) in 2022, Emma Cruickshank, Head of NW Europe at Westwood, said. Capex on oil and gas field development on the UKCS in 2021 is estimated at US$4.0 billion, a slight increase from US$3.8 billion last year, mostly due to deferral of work from 2020 to 2021, such as the completion of the Tolmount and Finlaggan projects, and a ramp-up of development activity, according to Westwood’s Cruickshank. Capex on producing assets is set to account for 57 percent of all expenditure, fields under development would represent 27 percent, and the remaining 15 percent of capex is set to come from oil and gas fields that are expected to be sanctioned in 2021. Moreover, 17 companies are expected to participate in exploration drilling offshore the UK in 2021, targeting total unrisked resources of around 640 mmboe, with Shell the only company targeting net resources of over 100 mmboe, as a result of its participation in five exploration wells, Cruickshank said.

Global Subsea Tree Outlook for 2021 The turbulent year 2020 upended the plans of exploration and production (E&P) companies which hastened to cut capital expenditures and defer or even cancel offshore drilling contracts amid the coronavirus pandemic and the crash in oil prices.

Globally, total subsea tree orders were 153 units in 2020, down by 33 percent compared to 2019, according to Westwood’s Global Subsea Tree Tracker as of 4 January 2021. The demand outlook for 2021 is expected at 224 units, based on Brent oil prices of $50 a barrel. Of these orders, 137 units (61 percent) are classified as “Firm”, 51 units (or 23 percent) as “Probable”, and 32 units (16 percent) classified as “Possible” by Westwood. The major projects to watch during the first quarter of 2021 include Ithaca Energy’s Captain EOR project offshore the UK.

UK Subsea Sector Cautiously Optimistic for 2021 after 2020 Shock The supply chain throughout the world, including in the UK North Sea, felt the impact of the reduced capex. Some areas of the UK supply chain, such as drilling and wells contractors and the subsea industry, were more exposed to deferred contracts than others. The unprecedented decline in global oil demand in 2020 also lowered business confidence of many companies working in the offshore supply chain. “Companies across industry indicate that it will take time to recover activity levels which have had to be postponed and deferred from 2020,” OGUK said in its Business Outlook 2020: Autumn Snapshot in November 2020. The representative body of the UK offshore industry expects that it could take two to three years to re-phase and recover the activity lost from 2020. Looking forward, E&P companies are still careful about spending, given the uncertainties on the market.

Nearly 75 percent of respondents did not anticipate making redundancies in the near future and 56 percent were fairly optimistic about the next six to twelve months, according to the survey.

This year, the UKCS is expected to see more development activity

However, the subsea sector in the UK started to show cautious optimism in the latter half of 2020, while the Government’s ‘Ten-Point Plan for a Green Industrial Revolution’ to build back better, support green jobs, and accelerate the UK’s path to net zero offers new business opportunities and revenue streams to the subsea industry, industry representatives say.

Modest Rise in UK Offshore Investments in 2021 Following the shock in 2020, investment in offshore oil and gas in the UK is set to rise modestly this year, if oil prices average $50 per barrel, Westwood Global Energy Group said in a report in December. Exploration activity could also return to 2019 levels, after a record-low activity in 2020.

www.ogv.energy I February 2021

The UK’s £7.8 billion subsea supply chain, the small and medium-sized enterprises (SMEs) in particular, are cautiously optimistic about the next six to twelve months, according to a survey of industry body, Subsea UK, published in early October, before oil prices rallied following the vaccine approvals and start of vaccinations in many countries.

The top three priorities for subsea SMEs as of the fourth quarter in 2020 were the health and well-being of employees, cash-flow, and lack of visibility over project work and their order books. “While it’s too early to determine the full extent of the economic impact on the subsea industry, our latest findings are more encouraging than we anticipated,” said Subsea UK’s chief executive, Neil Gordon. “Although there have been major redundancy programmes across the tier one companies, the situation among SMEs – who make up the bulk of the subsea supply chain – does not appear quite so gloomy,” Gordon said.

Looking at the year ahead, Subsea UK’s Gordon said in a post in early January 2021 that “It is likely to be some time before the full impact of the events of 2020 on sector is known and, after the chaos of this year, when uncertainty has reigned, only the brave will be making predictions about our sector. One thing we do know for certain is that our industry is nothing if not resilient and it will find a way to build back stronger.”

SUBSEA REVIEW

Energy Transition Offers Opportunities for Subsea Industry Growth The energy transition and the UK government’s ten-point plan could open up new opportunities for the subsea industry, whose “underwater engineering capabilities, honed in North Sea oil and gas and increasingly in demand in offshore wind, are eminently transferable into both established

and emerging sectors of the blue economy,” Gordon said. Offshore renewable energy currently accounts for around 25 percent of all subsea revenues, according to Subsea UK. Companies in the subsea sector are increasingly diversifying, especially in defence, marine science, and aquaculture. In addition, the ten-point energy plan included three points of particular interest to the subsea supply chain –

offshore wind, hydrogen, and carbon capture – areas which will depend on the subsea expertise the UK firms in the sector have been developing for decades in the offshore oil and gas industry. “The supply chain has a key role to play in the UK’s energy transition. There’s a clear opportunity to maximise our supply chain’s resilience, experience and expertise in creating a cleaner, greener future globally,” Subsea UK’s Gordon said.

02 26

SUBSEA REVIEW

THE BLUE ECONOMY AND ITS OCEAN OF OPPORTUNITIES For much of our industry, that future will be blue – in a good way. As the blue economy increasingly grows in scale and significance, it brings an ocean full of opportunities for the underwater engineering sector. Forecast to be worth around $3 trillion in the next 10 years it, along with the worldwide move towards energy transition – our green economy - has opened up exciting new prospects for companies agile and willing to consider how their capabilities can be applied across a diverse range of industries. Technologies and skills which have been developed and refined for decades in the seas around our coast, initially and primarily to service our oil and gas industry, are now employed around the world. Increasingly in demand in offshore wind, their application is eminently transferrable across all the emerging sectors of the blue economy with diversification opportunities in areas such as defence, floating wind, marine science, and aquaculture. The UK’s underwater engineering industry generates annual revenues of £7.8 billion. While the lion’s share of that comes from the oil and gas sector, which will continue to be the main source of energy for many years to come, we must look to growth in these other blue economy industries. There is a rich prize there for the taking and a need to act now to secure and grow our global marketshare of these emerging opportunities. As the representative body of the subsea sector, part of our role is to ensure that companies operating in this sector are armed with the market intelligence and other tools they need to help them capitalise on these opportunities. To this end, Subsea UK is working closely with other industry bodies to build valuable, collaborative relationships with agencies working across the subsea environment. Our roots may lie in oil and gas, but as we look to the future, it’s important that we are not just associated with a single industry but recognised as a sector that cuts horizontally across, and has a place in, all the underwater sectors operating in the blue economy. That has seen us forge links with the Scottish Aquaculture Innovation Centre (SAIC), building a partnership and cooperatively running a series of webinars, providing real, practical advice on how subsea companies can do business in the growing aquaculture industry which contributes £885 million to the wider Scottish economy each year.

The new year and beyond will not be without challenges. Indeed 2021 has not had the most auspicious start but, with the vaccine roll-out, we will start to recover this year and must take an optimistic, positive, and forward-thinking approach to the opportunities which lie ahead and what the future holds for the subsea industry.

We have a particularly close relationship with Offshore Renewable Energy (ORE) Catapult – they have a base in our Subsea UK office in Westhill – sharing information on the challenges of the offshore wind sector. In partnership with them, we are planning a series of webinars on opportunities in floating wind and the developing opportunities for the subsea community. We also work closely with the UK Defence Solutions Centre (UKDSC) identifying technologies and ways the expertise of our subsea sector can support and engage with the defence sector globally. Associated with all of this is the groundswell of global activity towards energy transition and the goal of net zero. The subsea supply chain has a key role to play in this, with the experience and expertise to support the inception of a cleaner, greener future. The UK government’s 10-point energy plan included three points of particular interest to the underwater engineering industry and its supply chain – offshore wind, hydrogen, and carbon capture (CCUS). All will be dependent in one way or another on subsea expertise to advance these energy streams from what are, still in some cases, pilot projects to fully functioning entities. The £4billion investment committed to the plan aims to leverage three times as much private sector investment over the next decade, and there must be genuine engagement with the supply chain in order to unlock and maximise the benefits of that investment. If we are to develop UK capability and create the right environment for growth, there must be clear supply chain strategy, a plan for how we will develop a specialist engineering, manufacturing, services, and technology sector that can support not only the 10-point plan but the wider move towards energy transition and net zero. To achieve this there needs to be a tripartite approach in which government not only works with industrial corporate investment but engages with the subsea supply chain from the outset. Early engagement will ensure that existing technologies and skills are employed and adapted, and innovative, new disruptive cutting-edge technologies are developed to meet the needs of these growth sectors. Funding commitments from both the Scottish and UK governments last year for the development of the Global Underwater Hub recognise the scale and potential of underwater engineering and technology as a valuable, standalone industry sector.

Through our relationship with Renewables UK, we run the annual cables conference, including Cables 2020, which ran as a virtual conference and enabled information exchange and cross-industry collaboration which will drive improvements and shared problem-solving approaches.

The worldwide underwater engineering market is expected to grow significantly, with annual spend potentially reaching £140 billion by 2035. The UK’s subsea industry, already globally dominant, must sharpen its competitive edge to remain ahead and gain a larger share of this market.

In partnership with DeepWind, we continue to raise awareness of the opportunities available to the subsea sector through the increasing emphasis on power generation through offshore wind – both fixed and floating. As such, we welcome BEIS’s review of the CfD process which will improve access to funding for floating wind projects.

With significantly more, dedicated resources through a Global Underwater Hub, our supply chain will benefit from the right level of support at the right time to develop the disruptive technology and new services required to delve deeper into existing and emerging opportunities, at home and abroad, in the energy transition, green recovery and the blue economy.

www.ogv.energy I February 2021

SUBSEA REVIEW Hiretech Completes

SUCCESSFUL SUBSEA Shears Cutting Trials

Hiretech Limited has completed successful yard trials with its new 5 tonne subsea shears. The cutting trials were conducted ahead of a client’s recent cable repair project. The trials were carried out to verify the required flows and pressures and confirm the cut times on 130mm, 203mm and 213mm diameter 3-core submarine export cables. The shears performed to expectation, delivering fast and efficient cuts to all three cables, utilising only 50-60% of the available hydraulic power.

SMALL CAMERA

BIG FEATURES VT36 Camera

Gathering visual information is key to understanding the underwater environment, particularly during remote inspections and interventions. Recent advances in miniaturisation have enabled pan and tilt functionality to be incorporated into a highly compact camera.

Additional test cuts were performed on 9 5/8” drill casing, further demonstrating the powerful cutting abilities of the shears on tubular materials. Hiretech added the shears to its rental offering following positive feedback from its client base. Available with 950t (5 tonne) and 1700t (10 tonne) shear force, the shears have been specified by Hiretech to provide safe, high performance cutting solutions on a variety of materials. Performance, reliability, ease of operation and maintenance were the key considerations at the specification stage. The shears have been designed for water depths of up to 10,000ft and can be powered and controlled from the surface, or from an ROV with hot stab and intensifier. Duncan Duthie, Subsea and Decommissioning Business Development Manager at Hiretech, has been overseeing the product integration into the firm’s rental portfolio. Mr Duthie commented: “This very significant investment by Hiretech demonstrates our continued commitment to deliver robust, reliable, and high performing rental products across a variety of sectors both domestically and internationally. As efforts shift towards a focus on efficiencies and sustainable energies, Hiretech strives to ensure it continues to meet evolving industry and client requirements.” The company made two sixfigure investments in 2020, adding subsea shears and air winches to its fleet, as progress continues to diversify and expand its rental equipment offering. Hiretech also offers a range of pumps, powered reels, HPUs, overboard chutes, subsea grabs, air compressors and personnel to provide fully integrated rental solutions.

Video footage of the cable and casing cutting is available on the Hiretech website at www.hiretech.rentals/rentals/subsea-tooling/

The VT36 is suitable for a multitude of applications in the subsea sector, including ROV integration, dive cameras, subsea monitoring stations and more! The VT36 pan and tilt camera from Dekra Visatec has an impressive depth rating of 500m, whilst being packaged in a tiny 36mm diameter housing. The camera has a full 360° pan function, with 210° of tilt and a 3.7mm lens giving a 72° horizontal field of view. The fully controllable in-built LED lighting allows this camera to be used standalone or alongside dedicated lighting systems. The 500m depth rating is achieved using a stainless-steel housing and high integrity acrylic dome. The acrylic dome is scratch resistant and can be easily replaced in the field if required. Operating the camera can be achieved through a dedicated control station (with 200m umbilical), or by direct input to the camera. The camera is simple to integrate into existing systems, with voltage-controlled functions for the camera movement and lens focus. Brian Storie, Spectis’ Managing Director, said “The VT36 is an exciting product for us, as it bridges the gap between bulky pan & tilt cameras and the smaller fixed position cameras commonly used in subsea applications. Pan and tilt functionality is now a realistic option for micro-ROVs and diver helmet cameras.” For more information, please get in contact with Spectis Robotics, the UK’s only Dekra Visatec authorised distributor – 01224 701444, info@spectisrobotics.com

PEOPLE IN ENERGY SPONSORED BY

PEOPLE IN ENERGY

Prodrill Energy Resource Solutions – people at the heart of the energy industry.

Subsea Superintendent Derek Dargie

With over three decades of experience in sourcing the best talent in the upstream market, Prodrill are driven by people, passion and potential. Experts in human capital; Prodrill have a wealth of experience in providing tailored contractor management and staffing solutions for the global upstream & E&P industry.

managing multi disciplines needed to do all the required BOP work. This involved a lot of planning across various teams and ensuring that the support of the 3rd parties involved in the project.

How has your job changed in the last 5 years, what do you do more of and what do you do less of? Since the continued oil price decline, a lot of experienced people have been let go from the industry, and in some cases quality has slipped. Now with the COVID situation a lot of the work I did previously was close contact, this has now changed to remote witnessing, meaning you need to have more trust in all the vendors. Aligned with this, consideration being given to push out the annual/5-year inspections, proving that the maintenance performed on the equipment is elongating its time in service without needing a 5 yearly, possibly pushing it out to a 10 yearly, using proven evidence that parts are being maintained and spares used tracked for wear.

What ambitions have you still yet to fulfil professionally in your career? How did you get into the Energy Sector and how long have you been working in it? I commenced my career in the oil industry in 1984 as a welder which involved being on a project on the Sedco 704. I then moved onto Vetco Gray after a few years within fabrication. I subsequently progressed to become a Field Service Engineer, on Surface and Subsea equipment installation. After a few years’ rotation (28 x 28) I was 3 years residential in Angola, and after that, 2 years in Qatar. My career continued to progress moving into the Subsea arena offshore in 2010 with Maersk Drilling and Ocean Rig.

What does your job involve on an average day? A big part of my role was travelling to remote locations including Africa, Singapore, and the USA. I was responsible for overseeing the rework and rebuild of Maersk well control equipment. This involved witnessing FAT, making sure all the work was performed to the relevant API regulations. Working with various oilfield vendors making sure that the strict high level of compliance that was required by Maersk was met.

How have you coped personally and as a company with the pandemic?

I enjoy working for myself, which allows me to take my extensive experience to various clients. It is the first time in 37 years I have not worked directly for a company. I am hoping to move to Canada in the future. I may try and secure work in the oil industry there or look for a new challenge for the last years of my working career, whilst enjoying some more relaxation on the golf course, skiing and cycling.

If you were inviting guests to a dinner party, which 4 people you invite and why? Bill Shankly, Sir Ian Wood, Irvine Welsh and Jack Welch (GE).. Sir Ian Wood is a pioneer in the oil business, moving away from the traditional fishing business into the new thing called” oil and gas” back in the 70s. The company speaks for itself with offices all over the world, and still diversifying into other avenues. Bill Shankly took his footprint from a hard life in a mining village in Scotland and transformed a sleeping giant in the form of Liverpool, he installed a work ethic and a belief in the team that saw them become the biggest team in Europe from many years. Irvine Welsh, enough said, he has a dark mind but a brilliant one. Jack Welch, from my time at GE, I recommend reading his autobiography.

Who has been the most influential person in your life professionally? A few come to mind. I have had so much help and support, and good advice over the years. As an apprentice I was always told to take pride in your work, something I have tried to carry forward as part of my work ethic. I was lucky with the management at Maersk Drilling who always have an open-door policy. The senior management at Maersk also gave a confidence that the company would succeed in Oil and Gas, something that cascaded down into the workforce.

Working in the Oil & Gas industry is a roller coaster, but enjoyable every day.

Over the next 10 years what do you see will be the key challenges in the Energy Sector both in the UK and internationally?

Unfortunately like many individuals my position in Houston was ended prematurely resulting in moving back to Aberdeen. As a self-employed contractor projects were plentiful initially; however, new work scopes have slowed down. There are positive green shoots showing signs of recovery towards the middle of 2021. Working from home has taken a while to adapt into, as I do prefer the office environment and the camaraderie that brings.

With the lack of recruitment over the last 5 years there is likely to be another skills shortage. It is not the first time that this has happened in the rollercoaster, that is the oil and gas industry. The latest recession has now gone on for almost 6 years. Experienced personnel are walking away, sadly never to return. The industry is struggling to attract the young talent it needs to survive, this will have a knock-on effect in years to come. The instability of the fluctuating oil price will drive businesses into alternative sectors such as renewables, and this will create more competition for oil companies to secure the right people.

What has been the highlight of your career so far?

Given the experience you have now, what advice would you have given yourself when you were just starting out in the Energy Sector?

Working for Maersk. They are such a diverse dynamic company. Great people to work with, and the calmness of the Scandinavian culture is something that benefited me personally. Working on projects in South Africa/ Palermo/ Singapore and the USA were the most enjoyable. I think the best project was when we decided to go away from the traditional BOP swap and rebuild and inspect the BOPs on board the rig. We had a 5-year rework project which involved

www.ogv.energy I February 2021

Working in the Oil & Gas industry is a roller coaster, but enjoyable every day. A boom it is closely followed by bust, and when this does happen, it does often make you wish you has taken a “normal job”. That said, I have had some fantastic experiences over the last 37 years and worked in some great places globally. I wish I had taken time to do some online university courses to benefit my career; however, with workload and family commitments it was difficult to get the balance right. Who knows, I might try one more time to see if a can get the degree I have thought about for so long.

PEOPLE IN ENERGY sponsored by

INNOVATION & TECHNOLOGY

RESHAPING UNDERWATER OPERATIONS Eelume Subsea Intervention

The Eelume Concept

Eelume is a disruptive technology for subsea inspection, maintenance and repair (IMR). Eelume vehicles are basically self-propelled robotic arms whose slender and flexible body can transit over long distances and carry out IMR in confined spaces not accessible by conventional underwater vehicles.

Our vehicles are engineered to live permanently under water, where they can be mobilised 24/7 regardless of weather conditions. A continuous IMR capability near the subsea installations without the need for surface vessels means greener, safer and less costly subsea operations.

Company Details Website: www.eelume.com Email: contact@eelume.com Tel: +47 46 500 700 Address: Transittgata 10 7042 Trondheim Norway

Technology Development stage: Commercial Launch date: 2019

INNOVATION &

TECHNOLOGY

IN ENERGY ANNUAL

202 1 VIEW THE FULL TECH ANNUAL MAGAZINE ONLINE AT www.ogv.energy I February 2021

www.ogv.energy

INNOVATION & TECHNOLOGY

System and Product Eelume vehicles are modular combinations of joints, thrusters and various payload modules. The slender body allows for precision hovering and maneuvering even in strong ocean currents. Sensors and tools can be mounted anywhere along the flexible body. A dual-arm configuration is achieved by mounting tooling in each end and forming the vehicle body into a U-shape. One end of the arm can grab hold to fixate the vehicle, while the other end can carry out inspection and intervention tasks. One end of the arm can also provide a perspective camera view of a tool operation carried out at the other end. All these flexible operational scenarios are made possible by the unique shape-changing capabilities of the Eelume vehicles. Eelume marine robots will be permanently installed on the seabed being ready 24/7 for planned and on-demand inspections and interventions regardless of weather conditions. This solution will dramatically save costs by reducing the use of expensive surface vessels, which are needed to support such operations today. Eelume underwater intervention vehicles can be installed on both existing and new fields where typical jobs include; visual inspection, cleaning, and operating valves and chokes. These jobs account for a large part of the total subsea inspection and intervention spend.

The Eelume Story Eelume was established in 2015 as a spin-off from the Norwegian University of Science and Technology (NTNU). After a decade of research on snake robots in collaboration with the research organisation SINTEF, we decided to pursue industrial subsea applications of these amazing mechanisms. The strategic partnership formed with Kongsberg Maritime and Statoil (LOOP product development program) in 2016 ensures that our unique vehicle concept is fused with leading subsea experience and technology. In addition, the support from the Research Council of Norway and Innovation Norway has been vital to our success.

Applications: • Visual inspection • Cleaning • Operating valves and chokes

We are immensely proud of our technology and progress, but our creative and highly motivated team is only at the beginning of its mission to reshape underwater operations.

VIEW THE FULL TECH ANNUAL MAGAZINE ONLINE AT

www.ogv.energy

GREEN ENERGY

CAN RENEWABLES

become as profitable as oil and gas?

Here’s the question for oil industry investors. Can oil companies scale up clean energy enterprises to replace business lost from a decline in fossil fuel revenues? Some of the oil companies put up a brave front as they boast of their decarbonisation plans. Others ignore the question. But at the end of the day— and this is the takeaway— we don’t think they will replace lost fossil related income by massively investing in windmills and solar power. Here’s why. It’s a simple matter of risk and return. Investors accept lower returns when they make low risk investments (regulated utilities for example). Except for nuclear power, non-fossil fuel investments are lower in risk than fossil fuel investments. Energy exploration by its nature entails risk of financial loss. There is no such thing as a dry hole in the wind or solar industries. That is why renewable industries can attract new capital while offering investors steady but lower returns.

that most resembles the oil industry in terms of risk, possible return and scale. The obvious catch is that not many for-profit businesses want to get involved with new nuclear construction and operation for good reasons, all of which are well known to our readers.

If oil managements do decide to enter the renewables business in a big way, as opposed to mere greenwashing, they may have to accept a lower rate of profitability. If they don’t, they will have a hard time obtaining business.

Maybe the oil industry has confused its end market with its business strengths. It seems to see itself as purveyor of energy on a mass scale. Okay, but that market will become crowded with purveyors of new energy products who work for less. Perhaps, instead, the oil industry’s strength is not its customer base but rather its skill as a financier, developer and operator of risky resources on a massive scale, akin to the giant mining and trading combines, but with more technological skill.

The inherently lower business risk of renewables distinguishes it from the oil business. Renewables do not require massive investments taking decades to fully develop in inhospitable and unfriendly places like the ocean floor. Their projects are bankable as soon as they have contracts signed. They do not compete against state controlled entities with few capital or environmental constraints. They can contract for a steady flow of revenues and pay regular dividends. Environmental accidents do not have multi-billion dollar consequences. Okay, weather can affect performance, but on balance performance averages out. In brief, renewable energy projects can be characterised as relatively small, or modular, with short duration of construction (planning takes longer), predictable revenues with limited foreign exposure. Low risk, low return. This profile doesn’t have the investment attributes of the oil business at all. Maybe, though, the oil industry could find a suitable new opportunity in nuclear energy. From our perspective some of its investment attributes are similar: projects with long lead times, large concentration of capital in one project, relatively low risk of catastrophic accident but high risk that any accident will be really bad, ongoing need for negotiation with and cooperation from the government authorities. Big oil’s scale gives it an edge. New nuclear projects are too big nowadays for most energy companies. And unlike renewables, if the nuclear builder negotiates aggressively it can extract an appropriately high return that reflects the risk. New nuclear construction is one business

www.ogvenergy.co.uk www.ogv.energy I February January-February 2021 2020

But with better construction management, research to develop a new generation of reactors and permanent waste storage, who knows? A new generation of nuclear power plants might emerge just when the oil companies need to find big replacements for lost income. This is still a possibility. But if we assume that commercialisation of new nuclear technology is at least a decade away that still leaves a big hole in prospective capital budgets. What to do in the meantime other than drill for oil? In short, we don’t expect the oil industry to grow in any meaningful way with wind turbines and large solar arrays. The demand for capital in the renewable industry is high but the returns may not be high enough for oil investors.

Oil and electricity are both commodities but with very different margin structures. Perhaps the oil industry would be better served by investing in potentially high margin commodity businesses like cobalt or rare earth metals, for example, without which no batteries can be made. Or, it could invest in resources or capital intensive processes that will be required for decarbonisation. In short, replace oil profits with windmill and solar profits? Other people can do it as well. Oil companies will need to do something big, and maybe as daring as drilling for oil in the old days. How about, for instance, a process to remove carbon dioxide from the air and turning it into chemicals and fuels on a vast scale? They need to start thinking on a bigger scale. Otherwise, why bother?

GREEN ENERGY

Equinor will test

FLOATING SOLAR

off Frøya

Equinor is already an offshore wind major. Now the company will explore the opportunities within offshore solar power. Together with Moss Maritime the company wants to start testing off the island of Frøya. Source: sofiawindfarm.com

“If we succeed here, we can succeed anywhere,” says Hanne Wigum. She is the head of the Equinor technology unit focusing on wind and solar power.

“We have been working on this concept for the past three years, most recently through our partnership with Equinor, and the concept has been substantially matured, both technically and economically. The floating pilot plant will be an important step on the road towards technology commercialisation, and an important arena for further development and optimisation of the concept,” says Alexander Thøgersen, vice president, engineering, at Moss Maritime.

The plan is to build a floating pilot plant off Frøya near Trondheim in the late summer of 2021. It is set to become the world’s first pilot plant for floating solar power in rough waters. The municipality of Frøya has been positive to and is involved in the planning of the pilot plant. Equinor has filed an application with the Norwegian Water Resources and Energy Directorate. Planned to measure 80 m x 80 m, the plant will tower less than 3 metres over the sea surface. According to plans the pilot will be tested for minimum one year. The project is a collaboration between Equinor and the technology company Moss Maritime.

Testing resilience The purpose of the pilot plant is not primarily to see how much energy it can produce, but how the weather conditions affect the plant. The Norwegian coast and continental shelf are world-class when it comes to oil, gas and wind, but when it comes to sun, other regions offer better conditions. As a test area, Frøya is still very suitable. “The municipality of Frøya has been a good collaboration partner for us. We have reached an agreement with the grid owner, allowing the electricity that is produced to enter the power grid on Frøya. In addition, the nearness to our research centre in Trondheim, and the expertise possessed by the Sintef and NTNU research institutions, represent an advantage for us,” says Wigum. Frøya mayor Kristin Furunes Strømskag looks forward to the further collaboration.

The plan is to build a floating pilot plant off Frøya near Trondheim in the late summer of 2021. It is set to become the world’s first pilot plant for floating solar power in rough waters.

Rapid development This is the third research project that Equinor is involved in. Equinor is already involved in a project off Sri Lanka. Here a concept in calm waters is being tested to decide how to produce as much energy as possible. In addition, Equinor is involved in a project in the Netherlands. Here three different floating solar power concepts are being tested on a lake. This provides important knowledge about the resilience and predictability of production under rougher conditions than in other current production sites for floating solar power. “We choose to perform several research projects in parallel because of the rapid growth within renewable energy. This enables us to acquire optimal knowledge about this as early as possible”, says Wigum. Equinor has not made any decision on the production of power from floating photovoltaic panels, besides the research projects.

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“It is very exciting that Frøya has been chosen as the host municipality for the testing of new renewable energy sources, such as solar power. With our natural conditions, we are a good location for a full-scale pilot plant within research and development”, she says. The pilot plant will be an important milestone for Moss Maritime as well.

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GREEN ENERGY

THE 8X CS OF ENERGY TRANSITION FOR SUPPLY CHAIN SUCCESS EIC kicks off 2021 with the 8x Cs of energy transition that, if acted upon by government and industry, ensure energy supply chain success.

The hyper-topic of energy transition is thrown around "willy-nilly" as the obvious solution to reach net zero carbon targets. The reality though is that most new energy transition technologies are still years away from being proven, safe, scalable and economically affordable. And the clock is ticking. To meet 2050 net zero carbon goals, countries need to rapidly transition from where they are today - some with scaled and affordable renewable electricity, but most without - to a future with fully decarbonised power, industry, transport and heat. This transition needs to happen at pace and will require new technologies, at scale. Excitingly, and foreseeably, this should provide massive opportunities for almost all businesses across the energy sector. Wherever you originate from, be it oil & gas, conventional, renewable or nuclear power, or other sectors like transport and marine, all will have a chance to participate in this new industrial revolution over coming years. But it will need leaders, sectors and ministries to work together in ways not seen before, resulting in truly integrated energy solutions and supply chains. UK energy policies have too often focused on quick fixes to address a glaring need, in this case to fully decarbonise at pace, but in their haste to act, have omitted actions to benefit the supply chain. A case in point is offshore wind, where the UK policy did indeed successfully stimulate world-leading demand for wind power, and quickly commoditised offshore wind around UK shores. But 100% of these wind turbines were imported from overseas, mainly from mainland Europe. What a lost opportunity this was to build a world-class, UK-centred turbine manufacturing capability. EIC analysis highlights 8x Cs of energy transition that, if acted upon by government and industry, will ensure supply chain success. Energy transition remains a complex topic with many unknowns, but the EIC believes that these 8x Cs of energy transition are key.

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1. CLN: Clean Government •

Clean energy, clean growth - Focus UK energy policy on authentically green technologies at the start, such as green hydrogen, wind powered electrification and nuclear. Blue hydrogen may be faster to scale and cheaper, and will help to decarbonise inside the UK, but will increasingly fail green authenticity tests for global clients.

•

Focus CCUS investments more on decarbonising industry and power, rather than CO2 capture for blue hydrogen.

•

Clean Conscience - Re-establish higher UK aid budget to ensure a just transition.

Industry •

Clean Sheet - Address your own carbon footprint quickly. Your customers will demand it, so start now. You won't be credible selling decarbonisation products and services if you don't live and breathe the same values.

2. CON: Confidence Government •

Confidently pitch huge UK ambition to the world at COP26.

•

Aim to be top 5 globally in key energy transition technologies, confidently picking winning technologies for the long-term. EIC data shows that Green hydrogen projects globally outshine Blue hydrogen projects by a factor of 10:1 - don't miss the boat, step up UK investment in this key new and authentically clean technology that the UK is geologically perfect for.

Industry Be brave, have the confidence to grow, invest and exportYou have the capability and ability to grow, invest and export.

3. CTL: Control Government •

Control the outcome, by filling in the supply chain gaps in the detail of the energy white paper, legislating and regulating supply chain investment and success, and communicating and delivering against a supply chain plan, intervening where necessary.

•

Link energy security to a planned and controlled, rooted and healthy supply chain.

•

Learn from Offshore Wind; don't leave supply chain success to chance. Set clear UK content requirements for strategic UK projects, with both O&M and technology rules for UK-controlled scope.

GREEN ENERGY 4.C£S: Cash

To meet 2050 net zero carbon goals, countries need to rapidly transition from where they are today

Government •

Assist COVID recovery with a green levy on businesses and consumers - direct the money raised towards UK utility-scale clean growth projects.

•

Supply chain companies cannot live on sporadic opportunities, they need a consistent pipeline of substantial green projects to invest properly themselves.

•

The world is waking up to energy transition as the next industrial revolution. Do not miss the boat - move with scale, move with pace.

7. CUK: Content (UK)

Industry

Government

•

Link energy policies to UK content requirements and make the threshold higher.

•

Link the UK content threshold to key technologies, not just O&M. Accepting that O&M is good for levelling up and jobs, this is not exportable, so we only grab a small % of the global market if we rely on O&M-related UK content.

•

Drive UK content for core manufacturing of energy transition products, and new areas of research and education.

•

Charge UK Export Finance ECA funding to drive growth in UK supply chain participation in global energy transition projects.

Business leaders need to get more involved. Become an expert in how to access and win government contracts, funding and support.

5. COL: Collaboration Government •

Coordinate collaborative Government-Industry-Society communication and working. Excite the sharing of ideas, make decisions at pace, listen to all corners of the UK and its wide range of views, feed new technologies, and root clustered capabilities, build back better, and watch energy exports take off.

Industry •

•

Decarbonisation affects everyone and everything - there is no longer an oil & gas or renewable industry, for instance - all sectors are now part of the clean, green economy and there is a key role for all technologies incl. transport, nuclear, renewable, gas, homes, grids, interconnectors, fuel cells, and so on.

8. COM: Competitiveness Government • Industry will come back from COVID, so set post-COVID policies and funding mechanisms that are catalysts for rapid growth and global competitiveness.

Embrace the concept of being part of a single and integrated UK energy supply chain, active in multiple sectors. Beyond energy, explore entering new sectors like infrastructure, space, sport, transport, marine, defence, pharmaceutical and aquaculture.

• There is a strong correlation between countries that lead with digital adoption and those that lead in decarbonisation technology and ambition - so set policies that drive digital leadership.

•

The planet and the environment concern all sections of society, so make sure your own business is fully diverse and inclusive, to ensure you can attract and retain the best talent.

•

Diversify as fast as you can - the days of relying on just oil & gas are fading, although EIC data shows that oil & gas projects will account for more than 50% of energy export opportunities (by value) for at least the next 5 years.

• Continue to provide funding and support to oil & gas exporters, at least for five more years. Energy transition, as laid out in the ‘energy white paper’, requires a rooted and healthy integrated UK energy supply chain. Industry •

Don't give up on digital adoption with risk-averse energy clients - the key to global competitiveness in energy transition will be whether your business has the highest rate of digital adoption and innovation.

Government

•

Invest in UK manufacturing for energy transition, not just UK services.

•

EIC has done the hard work to assess UK energy supply chain capability (3,500+ amazing businesses) - use the data, nurture what we have, make smart ‘seeding and rooting’ capability decisions.

•

The time for re-energising your export growth strategy is now. The uncertainty of Brexit negotiations is behind us. The new industrial revolution of energy transition awaits, and it promises to be a multitrillion-pound market.

•

Energy transition is the next industrial revolution, so growth in scale and scope is inevitable, and global competition will be fierce. Invest in expanded supply chain capacity and capability - do not leave this to chance.

•

The UK's highest emission zones tend to be in lower economy and high unemployment regions of the UK - take this chance to ‘level up’ and ‘build back better’ with regional, net-zero investment, training and job growth.

The UK energy supply chain has demonstrated unbelievable resilience during the low oil price years since the 2014 oil crisis and more recently the pandemic, with the return of entrepreneurial leadership evident across the UK. This perfectly positions those businesses to grasp the opportunity to capture market opportunity of energy transition in the months and years to come.

6. CAP: Capability

Industry Energy transition is at least five years from providing supply chain opportunities at scale, so be careful to retain your core business focus in the short term, while exploring new technologies for the future.

The EIC, as the voice of the integrated supply chain, is working with government and members to drive forward the policy required to ensure that the supply chain is rooted in the UK and has the capability to seed and develop and continue sharing its expertise on a global scale. We will continue to call for action to ensure the 8C’s are heeded and if you would like to learn more, or for more information, please contact the EIC.

The Energy Industries Council provides one of the most comprehensive sources of energy projects and business intelligence in the energy sector today. Learn more at: www.the-eic.com

CONTRACT AWARDS

Maersk picks up $100m contract from Total Maersk Drilling has been awarded contracts for its drillship Maersk Valiant and semi-submersible rig Maersk Developer from Total E&P for an exploration and appraisal project in Suriname. The two units will be employed for an estimated combined total duration of 500 days, with commencement scheduled in January and March respectively. The total value of the firm contracts is around $100m.

www.ogv.energy I February 2021

“We’re thrilled to firm up these contracts, adding further to our long-standing relationship with Total for whom we have a great track record from our collaboration on a number of deepwater exploration projects. We’re happy to add to our presence in the exciting Suriname-Guyana basin and will be able to leverage the fact that Maersk Developer is already operating offshore Suriname to quickly start up operations including provision of a range of integrated services to maximise efficiency,” said COO Morten Kelstrup of Maersk Drilling.

CONTRACT AWARDS

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CONTRACT AWARDS Glacier Energy secures significant PBS contract

Glacier Energy, a leading international provider of specialist products, services and engineering solutions for energy infrastructure, has been awarded a contract worth circa £1 million by PBS for the provision of export gas coolers for Total Exploration and Production UK’s (TEPUK) North Alwyn Platform, in the North Sea. The scope of work includes the design, fabrication, assembly, inspection, testing and supply of four shell and tube heat exchangers which will be carried out by Glacier Energy’s heat transfer solutions division, based in Aberdeen, UK. Work has already commenced on the units with four heat exchangers due for delivery in January 2021. PBS is a new organisation based in Aberdeen which consists of three separate companies – Ponticelli UK Ltd, Brand UK Ltd and Semco Maritime Ltd. As of 1st May 2020, PBS has been awarded a five-year contract to provide general operations & maintenance services to all TEPUK assets in the North Sea. Commenting on the award, Andy Scott, Director of Glacier Energy’s Heat Transfer division, said: “This is a significant award for the team that reinforces the strength of our design and

manufacturing expertise, as well as our marketleading status in the heat transfer solutions field across the oil & gas, chemical and alternative energy industries. “A key factor in securing this award was our close collaboration with the client and ability to provide a custom-engineered solution to eliminate potential and substantial modifications to the platform. “We look forward to developing our relationship further with PBS and successfully completing the safe and efficient delivery of this project.” At the core of the Glacier Energy brand, is the company’s deep-rooted capability amassed through the acquisition of some of the most technical and reputable brands in the industry. Formed in 2011, the company’s mission was to create a fresh alternative in energy services, providing customers with world-class technologies, exceptional service and enhanced value, all from one integrated provider. In 2013, Glacier Energy acquired Ross Offshore, renowned specialists with decades of experience in the installation, repair, refurbishment and replacement of heat exchangers. This acquisition, a natural strategic fit for Glacier

Energy’s offshore business, was then swiftly followed by the acquisition of MSL Heat Transfer in 2014, which strengthened the company’s capability in the design, manufacture and repair of radiators and coolers. Today, Glacier Energy is made up of four divisions – heat transfer solutions, welding solutions, onsite machining solutions and inspection & NDT services. Operating throughout the UK, the company has a growing international presence with strategic partners operating in the Middle East, Caspian and USA.

Stork awarded maintenance contract by Sitech in the Netherlands Under this framework agreement, Stork will provide maintenance services and will execute projects and turnarounds. The scope of work includes mechanical, electrical and instrumentation services complemented by a portfolio of specialist services such as valves and rotating equipment maintenance and repair, high-voltage services, calibration, onsite machining and bolting, and heat treatment services. Stork will deliver these services using its site office together with Stork’s nearby Solutions Center in Elsloo and Fluor’s local engineering capabilities. Services will be provided at various renowned asset owners at the Chemelot industrial complex site in Geleen, the Netherlands.

Fluor Corporation announced that Stork, part of Fluor’s Diversified Services segment, was awarded a 26-month maintenance contract extension by Sitech Manufacturing Services in the Netherlands. Fluor will book the undisclosed value in the fourth quarter of 2020. “We are pleased that Sitech extended the contract with Stork to be their continued

www.ogv.energy I February 2021

partner of choice for the coming years,” said Taco de Haan, president of Stork. “Stork and Sitech’s 25-year relationship exemplifies the importance of a successful business partnership. Both companies recognise the benefits derived from longterm partnerships that enable continuous performance improvement in safety, cost and overall plant asset performance.”

“This award renewal is another great indication that clients appreciate Stork’s strong performance in safety and delivery. Stork provides a broad portfolio of services for our clients in a very efficient one-stopshop approach,” said Alejandro Escalona, Stork’s regional vice president, Europe. “We look forward to continuing our longstanding relationship with Sitech and to continuously improve together.” The framework agreement started in October 2020 and has extension options after the expiration date in December 2022.

CONTRACT AWARDS

Spirit contracts Maersk rig for North Sea Grove infill well Spirit Energy will use the heavy-duty jackup Maersk Resolve to drill a new well in the Grove North East area of the UK southern North Sea.

team is experienced in drilling similar wells in the southern North Sea, including other wells in the Grove area.”

Neil McCulloch, Spirit’s executive vice president, Technical & Operated Assets, said: “The infill well is planned to target the unappraised northeastern limb of the Grove field and has the potential of delivering 4.2 MMboe net additional reserves.

Grove’s gas is processed at the Markham J6-A facilities on the UK/Dutch median line, operated by Spirit and transported via the West Gas Transport pipeline system to the Den Helder terminal in the Netherlands for further processing.

“Further, it could add five new years to the life of the Grove field and improve the prospect of additional opportunities in the area.”

Britain’s Oil & Gas Authority issued approval for the Grove NE well through its Well Operations and Notifications System process.

The company had studied various alternate concepts, including horizontal, vertical and platform deviated wells, subsea tiebacks, and an appraisal well.

Maersk Drilling expects drilling to start in March and continue for 131 days.

“Based on the subsurface, well technical complexity, value and strategic fit criteria, we have decided on a platform-deviated well,” McCulloch explained. “We believe this is the optimal way forward and a robust well design has been developed – our

The firm contract value is around $11.3 million, including mob/de-mobilisation, with an option to also P&A one well. “The campaign at Grove will benefit from Maersk Resolve’s experience with safely and efficiently drilling challenging Zechstein formations as part of the rig’s latest assignment in Dutch waters,” said Maersk Drilling COO Morten Kelstrup.

The Maersk Resolve completed a campaign offshore the Netherlands last October and is currently warm-stacked in Esbjerg, western Denmark.

“We’re thrilled to firm up these contracts, adding further to our long-standing relationship with Total for whom we have a great track record from our collaboration on a number of deepwater exploration projects. We’re happy to add to our presence in the exciting SurinameGuyana basin and will be able to leverage the fact that Maersk Developer is already operating offshore Suriname to quickly start up operations including provision of a range of integrated services to maximise efficiency,” said COO Morten Kelstrup of Maersk Drilling.

McDermott bags NFS FEED job from Qatargas The LNG and energy engineer, McDermott International has been contracted to deliver front-end engineering and design (FEED) work for Qatar Petroleum’s North Field South (NFS) project. The contract scope includes the replication of five offshore wellhead platforms. The FEED contract will be executed from McDermott’s Doha office and work will begin immediately, the company said in its statement. Tareq Kawash, McDermott senior vice president, Europe, Middle East and Africa. “As oil and gas field development continues in the region, we are poised to build on this initial work to further support Qatargas as they progress the subsequent phases of the NFS project.”

North Field South is part of Qatar Petroleum’s second phase of the North Field LNG expansion project, which will further increase Qatar’s LNG production capacity from 110 Mtpa to 126 Mtpa.

The North Field East expansion project will increase Qatar’s LNG production capacity from 77 to 110 million tons per annum.Mathisen, responsible for aviation on the NCS for Equinor.

OGV Energy - Issue 41 - February 2021 - Subsea Review

Articles inside

Company News

Contract Awards

European Update