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May 2020

World Trends and Technology for Offshore Oil and Gas

CRISIS
MANAGEMENT
• FPU construction update
• Platform of the future
• France supplement

2005OFFC1-C5.indd 1 4/29/20 11:50 AM


Achieve
reliability
offshore.
Shallow and deepwater
assets require a technology
provider that enhances safety,
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high-margin production.

Ready? We are.
© 2020 Weatherford. All rights reserved.

weatherford.com/offshore

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CONTENTS •

International Edition
Volume 80, Number 5
Celebrating 65 Years of Trends, Tools, and Technology

16

• CRISIS MANAGEMENT sector will see a significant slowdown in planned investments. Dis-
Industry responds to low oil prices, cretionary E&A budgets have been slashed, rig contracts cancelled,
coronavirus pandemic������������������������������������������������������16 and new project sanctioning is being reassessed.
The offshore oil and gas industry began 2020 on a cautiously opti-
mistic note. That optimism was quickly shattered with the onset • DRILLING & COMPLETION
of the novel coronavirus pandemic and the equally rapid collapse Third-party verification plays key role in HP/HT
in crude oil prices. The lockdowns and quarantines that followed technology adoption���������������������������������������������������������27
have taken a huge bite out of oil demand; this has further eroded Since the consequences of failure in offshore HP/HT environments
oil prices. The result is an unprecedented level of uncertainty in the are potentially severe, regulators such as BSEE have added extra
market. rigor in their permitting and approval process for such projects, re-
Pandemic, falling prices take steam out of floating quiring additional risk studies, design verification, and validation of
production market�������������������������������������������������������������22 equipment using an Independent Third Party (I3P) for verification
Prior to the COVID-19 pandemic and concurrent crash in oil prices, and oversight.
2020 was on track to be a strong year for new project awards and
ongoing construction in the floating production sector. Energy • ENGINEERING, CONSTRUCTION, & INSTALLATION
Maritime Associates anticipates that few new projects will be FSRU enables cleaner energy production
sanctioned this year, and that its previous five-year forecast for new for El Salvador�������������������������������������������������������������������30
orders should be reduced by approximately 20%. The 378-MW Energía del Pacífico project in El Salvador will not
Embattled industry goes into crisis only introduce a new source of energy to the country, but it will also
management mode������������������������������������������������������������26 include the development of the first offshore regasification vessel
The sudden drop in the oil price together with the coronavirus deployed off the Pacific Coast of Central America – thus demon-
pandemic has thrown the global offshore EPC market into a state strating the viability of floating LNG as an energy source for land-
of flux. 2020 budget cuts so far have been around 25%. The offshore based power generation in the region.

Offshore® (ISSN 0030-0608, print; 2688-3295, digital/USPS 403-760) is published 10 times a year by Endeavor Business Media, LLC, 1233 Janesville Avenue, Fort Atkinson WI 53538.
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is a registered trademark. Endeavor Business Media, LLC 2020. All rights reserved. Reproduction in whole or in part without permission is prohibited. We make portions of our subscriber list
available to carefully screened companies that offer products and services that may be important for your work. If you do not want to receive those offers and/or information via direct mail, please
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MAY 2020   OFFSHORE | WWW.OFFSHORE-MAG.COM1

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• CONTENTS

Volume 80, Number 5

• EQUIPMENT & ENGINEERING


COVER: The offshore industry is in crisis management Air filtration system helps improve
mode. The onset of the COVID-19 pandemic and the gas turbine performance
collapse in crude oil prices has forced the industry to slash on BP’s Clair platform��������������������63
capex, delay projects, and cancel and terminate contracts.
Learn how the industry is dealing with these challenges Changing the fundamentals of
starting on page 16. (Image courtesy Siemens) subsea well completion�����������������66

Slim stop collar intended for close-


tolerance applications��������������������68
Hybrid power plants can help decarbonize offshore drilling rigs and vessels��� 34
The marine and offshore oil and gas industries are coming under immense pressure to
reduce emissions and improve the sustainability of their operations. Considering this, the
application of low voltage direct current-based diesel-electric propulsion systems has gained
DEPARTMENTS
significant traction.
Online������������������������������ 4
BOKA Vanguard delivers second box-shaped FPSO to Petrobras������������������ 37 Comment������������������������� 5
Boskalis’ giant heavy transport vessel BOKA Vanguard has delivered a second box-shaped Data���������������������������������� 6
FPSO to Petrobras for a deepwater oilfield development in the Santos basin offshore Brazil. Global E&P���������������������� 8
A dry-tow of the platform onboard the vessel cuts the journey time from the Far East by up Offshore Europe����������� 10
to 60 days, Boskalis claims, compared to a conventional wet tow using tugs. This cuts the Gulf of Mexico��������������� 11
overall project costs and helps speed the schedule toward first oil. Subsea Systems����������� 12
Vessels, Rigs, &
Surface Systems����������� 13
• PRODUCTION OPERATIONS Drilling & Production���� 14
Quantitative engineering analysis ensures assets remain safe, sustainable��� 41
Offshore Wind Energy�� 15
Fitness for service provides a quantitative engineering evaluation to demonstrate the in- Business Briefs������������ 69
tegrity of a component to continue to operate under a specific set of conditions, potentially Advertisers’ Index��������� 71
in the presence of a defect or degradation mechanism. It translates inspection results into Beyond the Horizon������ 72
quantifiable operational and safety risks, enabling informed integrity management decisions.
Digital technologies leading industry toward autonomous operations��������� 46
Autonomous operations can help make systems safer, more capable and reliable, as well as
more cost-effective. Removing people from
the process reduces the scope for errors
and improves safety. The journey toward
autonomous operations is happening in the
energy sector, predominantly now where
digital technologies are being used to sense,
measure, and control connected assets.

• FRANCE
Eiffage Métal expanding offshore
wind construction capability���������52

GTT membranes safeguard LNG on


Prelude, Coral South����������������������54

DORIS maintaining focus on


renewables, lower-cost
production���������������������������������������56

iXblue develops second Gaps USBL


system for shallower-water subsea
tasks������������������������������������������������������� 58

Re-purposing gas carriers for


offshore re-gas, storage roles�������60

Les “Habitués” de OTC�������������������62


51
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AM
• ONLINE

VP AND GROUP PUBLISHING DIRECTOR


Paul Westervelt pwestervelt@endeavorb2b.com
CHIEF EDITOR/
CONFERENCES EDITORIAL DIRECTOR
David Paganie dpaganie@endeavorb2b.com
MANAGING EDITOR
Bruce A. Beaubouef bbeaubouef@endeavorb2b.com
EDITOR-EUROPE
Jeremy Beckman jbeckman@endeavorb2b.com
ASSISTANT EDITOR
LATEST NEWS AVAILABLE AT OFFSHORE-MAG.COM Jessica Stump jstump@endeavorb2b.com
The latest news is posted daily for the offshore oil and gas industry covering POSTER EDITOR
technology, companies, personnel moves, and products. E. Kurt Albaugh, P.E. Kurt.albaugh@yahoo.com
EDITORIAL CREATIVE DIRECTOR
CORONAVIRUS PANDEMIC COVERAGE Jason Blair
COVID-19 Impact on the Oil & Gas Industry PRODUCTION MANAGER
Shirley Gamboa sgamboa@endeavorb2b.com
Volatility has always been a challenging element of the oil and gas market but has
rarely been more extreme than it is today. COVID-19-led disruptions to demand, AUDIENCE DEVELOPMENT MANAGER
Emily Martin emartin@endeavorb2b.com
combined with its dramatic impact on financial markets, have led to rapid price
swings. Oil & Gas Journal and Offshore magazine editors discuss how COVID-19 OFFSHORE EVENTS
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Gail Killough (Houston) gkillough@endeavorb2b.com
https://www.offshore-mag.com/home/webinar/14174206/covid19-impact-on-the-oil-gas-
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2005OFF04-15_fob.indd 4 4/28/20 11:38 AM


COMMENT •

Market rebalancing, recovery underway


DAVID PAGANIE, CHIEF EDITOR

THE COVID-19 PANDEMIC has forced millions Oil company operators have responded to the deteriorating
of people across the world to change the way economic conditions with cuts to capex plans for 2020, many
they live and work. This has led to a precipitous in the range of 20-30%. This includes pushing some project
decline in oil demand due to lower air and road sanctions to next year or beyond.
transportation, and thus downward pressure on Oil demand should improve when the stay-at-home and
oil prices. The OPEC+ agreement, sealed via physical distancing restrictions loosen, and business and travel
videoconference on April 12, is an important pick up again. At the time of this writing, some countries were
step toward rebalancing the market, but it will be a gradual beginning to rollout plans to reopen their economies, and with
process over the next several months. government-sponsored stimulus packages to support the
The agreement calls for a reduction of 9.7 MMb/d from May recovery.
1 until June 30, 7.7 MMb/d until December 30, and then 5.8 The IEA forecasts that the second half of this year could see
MMb/d for a subsequent 16-month period. Other producers demand exceed supply if the recovery plays out as expected.
outside the agreement may also see their output fall in the Key signals to keep an eye on are the level of compliance by
coming months due to the impact of the lower oil prices. OPEC+, oil storage inventories, and any improvements in global
This should help to reduce the supply overhang and build-up economic activity.
in storage, but it will not immediately bring supply in balance For more on the impact of COVID-19, see page 16.
with the rapidly declining demand.
The International Energy Agency (IEA) in its April oil report
projected oil demand to fall by 29 MMb/d in that month year-
over-year, which would be the lowest level since 1995. Demand
would gradually recovery to 2.7 MMb/d down in December and
close out the year down a record 9.3 MMb/d.
Equally daunting is the economic outlook. The International
Monetary Fund in April projected that the impact of COVID-19
would cause the global economy to contract by 3% this year,
which is worse than the contraction recorded during the 2008- To respond to articles in Offshore, or to offer articles for publication,
2009 financial crisis. contact the editor by email (dpaganie@endeavorb2b.com).

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MAY 2020   OFFSHORE | WWW.OFFSHORE-MAG.COM5


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2005OFF04-15_fob.indd 5 4/28/20 11:38 AM


• DATA

Worldwide offshore rig WORLDWIDE OFFSHORE RIG COUNT AND UTILIZATION RATE
APRIL 2018 – MARCH 2020
count and utilization rate
The total number of jackups, semis, and 1,000 100
drillships under contract grew by six
units from 483 in February to 489 rigs 900 90
through March, while the global supply

Fleet utilization rate (%)


stayed flat at 758 rigs. As a result, utili- 800 80

Number of rigs
zation improved from 63.7% in February
to 64.5% in March. The number of rigs 700 70
working also improved between Feb-
ruary and March, climbing by five units 600 60
to 462. However, it absolutely must be
noted that going into March of this year,
500 50
offshore drilling activity was still on the
incline as operators were only just begin-
400 40
ning to make adjustments in light of the
spreading COVID-19 pandemic and the
crash of the oil price. So, these metrics 300 30
Apr. Jun. Aug. Oct. Dec. Feb. Apr. Jun. Aug. Oct. Dec. Feb.
are currently falling and likely will contin- 2018 2019
ue to for at least some months to come. 
Total utilization % Total supply Total under contract Working
 – Justin Smith, Petrodata by IHS Markit
Note: Rig types included are jackups, semis, and drillships
Source: IHS Markit RigPoint

Low oil prices to slow PROJECT SANCTIONING STATUS AND FORECAST


project sanctioning 160
Offshore sanctioned
In a $30/bbl oil price scenario Rystad
Energy expects the sanctioned dollar 140 Offshore to-go
amount by operators to fall below the Onshore sanctioned
2016 level for both offshore and onshore 120 Onshore to-go 110
104
projects. In the previous downturn, the
100
Billion USD

pace of sanctioning long-cycle deepwa- 88


ter projects slowed down, and the ana- 79
80
lyst expect this trend to be repeated in 67
57 60
the current cycle. The list of new deep- 60 55
water projects currently under evaluation 42 41
40 38 34
by operators is long and several projects 31 30
are likely to face delays. Some large
deepwater projects that have already 20
been pushed from approval this year, in-
0
clude Aker Energy’s Pecan, Woodside’s 2014 2015 2016 2017 2018 2019 2020 2014 2015 2016 2017 2018 2019 2020
Browse, and ExxonMobil’s Rovuma LNG $30 $30
Area 4 project. Offshore Onshore
Source: Rystad Energy ServiceCube

HIGH-IMPACT EXPLORATION
Exploration drilling falling HIGH-IMPACT DISCOVERED AND PROSPECTIVE
back to post-2014 levels EXPLORATION DRILLING VOLUMES
Exploration well numbers this year could
be 35% down on 2019 levels, according 120 Drilled 16 Drilled
to Westwood Global Energy Group. Kai Drilling Drilling
Gruschwitz, senior analyst, Global E&A, 14
100
Completed HI Exploration Wells

expects ~60-70 high-impact explora- Expected Expected


tion wells will be completed by the end 12
of 2020, which would be back down to 80
10
numbers last seen from 2016 to 2018
Bboe

following the 2014 price crash. The 26 60 8


‘high-impact’ wells completed so far this
year have discovered a total of around 4.3
107 34 6 15.1
2.1 Bboe and according to Westwood, 40 93
12.9
wells currently drilling are testing a fur- 66 69 68 13 4
9.6 2.5
ther 2.5 Bboe of risked volumes. The an- 20
alyst now expects discovered volumes 2 4.9 6.1
26 2.1
for 2020 to total 6-9 Bboe, compared with
the 15 Bboe added last year worldwide. 0 0
2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020

Source: Wildcat, Westwood analysis

6 WWW.OFFSHORE-MAG.COM | OFFSHORE   MAY 2020

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2005OF
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2005OFF04-15_fob.indd 7 4/28/20 11:38 AM


2005OFF_ArielCorp 1 4/28/20 11:25 AM
JEREMY BECKMAN
• GLOBAL E&P LONDON

NORTH AMERICA and Galp are the other partners. The Natator oil discovery was
TGS and PGS have released final data from 3D surveys offshore on the Sudoeste de Tartaruga Verde block in the Campos basin,
Newfoundland and Labrador, ahead of the Canada Newfound- 130 km (81 m) offshore Macaé in 1,080 m (3,543 ft) of water.
land Labrador Offshore Petroleum Board’s licensing round later The well proved oil in post-salt carbonate reservoirs.
this year. The Tablelands and North Tablelands data-sets cover ◆◆◆
12,500 sq km (4,826 sq mi) in the eastern Orphan basin off Apache Corp. and Total have made what appears to be a second
Newfoundland, and identify potentially promising reservoirs large oil discovery on block 58 offshore Suriname. The Sapakara
from Lower Cretaceous to Lower Tertiary intervals. West-1 well, drilled by the Noble Sam Croft, south of the earlier
◆◆◆ Maka Central-1 find, tested oil and gas condensate in multiple
Husky Energy has suspended major construction work on its stacked targets in Upper Cretaceous Campanian and Santonian
West White Rose platform offshore Newfoundland to protect intervals. On completion of the well, the drillship was due to
site staff and contractors against the spread of COVID-19. head 10 km (6 mi) to the northwest to drill the Kwaskwasi
However, production continues from the SeaRose FPSO, the prospect.
White Rose field and its satellite extensions 350 km (217 mi) ◆◆◆
offshore. Brazil’s licensing agency ANP has temporarily suspended this
◆◆◆ year’s planned 17th oil and gas licensing round, due to worsening
McDermott International is managing pre-front-end engineering economic conditions and the growing impact of the coronavirus.
design (pre-FEED) on behalf of BHP for a floating production It was reportedly set to offer 130 blocks across five basins.
unit for the deepwater Trian oilfield. The platform will be moored ◆◆◆
in 2,500 m (8,200 ft) of water, 180 km (112 mi) from the Mexican Searcher Seismic has reprocessed a further 8,008 km (4,976 mi)
coast and 30 km (19 mi) south of the US/Mexico offshore median of 2D seismic over Argentina’s offshore Austral and Malvinas
line. Houston Engineering and Wood are supporting McDermott basins. The Argentina Super-Tie 2D reprocessing project now
respectively on the hull and topsides studies. comprises over 19,000 km (11,806 mi) of broadband data to
◆◆◆ support the country’s future bid rounds and assessments of
Bahamas Petroleum Co. plans to re-schedule Perseverance #1, other commercial opportunities. Searcher said work to date
its first exploration well offshore the Bahamas, to mid-October had improved imaging of deeper stratigraphy and basement
or later. Recent shutdown measures imposed by the government potential.
have impacted movements of drilling rigs and associated prepa- ◆◆◆
rations, the company said, with the three-month hurricane Premier Oil and its partners remain committed to the Sea Lion
season ruling out drilling from mid-July. oilfield development in the offshore North Falkland basin.
However, the final investment decision will probably be delayed
SOUTH AMERICA until the external macro-environment improves, according to
Petrobras has two further deepwater oil discoveries off southeast Rockhopper Exploration. The partners now plan to target 250
Brazil. The well on the Araucária prospect, 200 km (124 mi) MMbbl from the first phase via 29 wells, 12 to be drilled prior
from the city of Santos and in 1,995 m (6,545 ft) water depth, to first oil, with production building to a plateau of around
was the first on the Uirapuru block in the presalt Santos basin. 85,000 b/d via a conventional FPSO.
It encountered oil in porous reservoirs. ExxonMobil, Equinor,
WEST AFRICA
BP and partner Kosmos Energy may delay start-up of the ul-
tra-deepwater Greater Tortue Ahemyim gas-condensate project
off Mauritania and Senegal until 2023, due to recent global
developments. Travel bans, social distancing, and office closures
have impacted the project’s progress, Kosmos said, including
construction of the breakwater for the LNG jetty during the
2020 weather window. BP has also notified Golar LNG that it
will not now be ready to receive the converted FLNG vessel
Gimi on the planned connection date in 2022.
◆◆◆
The BGP Prospector has started acquiring the 4,770-sq km
(1,842-sq mi) Gambito 2020 3D seismic survey in the MSGBC
basin offshore The Gambia. TGS, which is coordinating the
campaign with BGP and the government, says the deep/ul-
Location of Notator oil discovery in the Campos basin. tra-deepwater areas covered appear strongly prospective, based
(Courtesy Petrobras) on large basin floor fans identified on previous 2D surveys.

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JEREMY BECKMAN
LONDON GLOBAL E&P •

◆◆◆ signments, a collaboration with SapuraKencana, involved con-


Aker Energy has cancelled a letter of intent that it issued in struction and installation of three new platforms, replacement
February to Malaysian shipyard Yinson to charter and operate of an existing topsides, and installation of associated subsea
and FPSO for the Pecan field development offshore Ghana. The infrastructure.
company has suspended work on the project in the Deepwater ◆◆◆
Tano Cape Three Points until further notice. Development drilling has started on Qatar Petroleum’s offshore
◆◆◆ North Field East project. Eight jackups will drill a total of 80
São Tomé and Principe and Equatorial Guinea have agreed to wells in the first phase, with the increased gas production raising
create a Special Zone for Joint Exploration of hydrocarbons in Qatar’s LNG capacity from 77MMt/yr to 110 MMt/yr. The first
blocks bordering each country’s maritime zone. They hope to of four new offshore jackets for the project was due to be installed
initiate offshore operations in October. late last month.
◆◆◆
PGS has completed acquisition of its 3D Kwanza Shelf survey ASIA/PACIFIC
offshore Angola, with total GeoStreamer broadband overage ONGC has produced first gas from the 98/2 block subsea de-
over blocks 6, 7 and 8 and surrounding areas of the shelf now velopment in the Krishna Godavari basin offshore eastern India.
at 8,300 sq km (3,205 sq mi). The company will make the data McDermott International is the project engineering contractor,
available for Angola’s planned 2021 licensing round. The shal- responsible for supply and installation of the subsea production
low-water Kwanza Shelf is said to present imaging challenges, systems, including 26 deepwater trees, and the SURF system
which the survey is part-designed to address. in water depths extending out to 1,300 m (4,265 ft).
◆◆◆
MEDITERRANEAN SEA CNOOC has discovered oil in an emerging play, the Laibei lower
The Lebanese Petroleum Administration has extended the uplift, in the southern Bohai basin offshore China. Well KL6-1-3
closing date for applications for the country’s second offshore was drilled on the Kenli 6-1 structure in 19.2 m (63 ft) water
exploration licensing round to June 1, 2020. The Ministry of depth in Bohai Bay, intersecting 20 m (65.6 ft) of oil pay zones
Energy and Water accepted that bid preparations may have and flowing 1,178 b/d during testing.
been impacted by COVID-19 restrictions.
◆◆◆ AUSTRALASIA
The hull of the FPSO Energean Power reached the Sembcorp Searcher Seismic has entered a marketing and sales agreement
Marine Admiralty Yard in Singapore last month following a with Timor-Leste’s Petroleum Authority ANPM for its Offshore
short voyage from the Cosco yard in China. Preparations for Timor-Leste data and study package. Searcher, in co-operation
the topsides integra- with Discover Geoscience, has complied the seismic and well
tion, however, were put data to support companies assessing the 19 offshore blocks
on hold due to a (tem- available under the country’s current second petroleum licensing
porary) COVID-19 re- round. The package reviews all play types, including little-ex-
lated suspension of plored Triassic plays. •
activities. Energean is
confident the floater
will be ready in time to
receive first gas from
the Karish field offshore
Israel in the first half of The hull of the FPSO Energean Power
next year. Later in 2020, during its tow to Singapore. (Courtesy
Energean)
the company expects to
take an investment decision on tying in the Karish North dis-
covery to the FPSO.
same sector.

MIDDLE EAST
ADNOC has terminated two contracts awarded in February to
the Petrofac Emirates joint venture for the Dalma gas develop-
ment in the Ghasha ultra-sour offshore concession, 140 km (87
mi) northwest of Abu Dhabi. Petrofac said it would work with
the NOC over the coming weeks on alternative options better Blocks on offer offshore Timor-Leste. (Courtesy Autoridade Nacional
do Petróleo e Minerais de Timor-Leste)
suited to the present challenging environment. One of the as-

MAY 2020   OFFSHORE | WWW.OFFSHORE-MAG.COM9

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JEREMY BECKMAN
• OFFSHORE EUROPE LONDON

JOHAN SVERDRUP HITS PEAK EARLY However, most of this year’s scheduled wells already had con-
Equinor expected production from Phase 1 of its Johan Sverdrup tracted rigs, so the impact of deferrals will likely be felt more in
project in the Norwegian North Sea to reach a peak of 470,000 2021.
b/d this month, ahead of schedule. Arne Sigve Nylund, EVP for Just as the extent of the downturn was becoming apparent,
Development and Production Norway, credited higher plant Total announced a potentially commercial HP/HT gas, con-
capacity, adding that output had been stable since start-up last densate and light oil discovery in the Isabella prospect in the
October with the 10 wells drilled performing above expectations. UK central North Sea, 40 km (25 mi) south of the company’s
Sverdrup’s low operating costs mean that the field continues to Elgin-Franklin production complex. The well, drilled by the
provide stable revenue and cashflow both to the partners and jackup Noble Sam Hartley, delivered 64 m (219 ft) of net pay in
Norwegian society as a whole, he stressed. Work continues on Upper Jurassic and Triassic reservoirs. Wood Mackenzie analyst
Phase 2, which will raise production to 690,000 b/d via a second Glenn Morrall said the proximity to offshore infrastructure
drilling and production platform connected to the existing field could enhance the field’s economics when market optimism
center, with targeted operating costs of less than $2/bbl. eventually returns.
In the central Norwegian North Sea, MOL found light oil and
gas in the Evra/Iving structure, 8 km (5 mi) northwest of Vår
Energi’s Balder X redevelopment (the Balder and Ringhorne
fields), with potentially up to 71 MMboe recoverable. And
Wintershall Dea’s Bergknapp oil discovery in the Norwegian
Sea, close to the company’s producing but declining Maria field,
could hold up to 97 MMboe.

NO CHANGE TO LICENSE ROUND PLANS


Norway’s Ministry of Petroleum and Energy is pushing ahead
with its Awards in Predefined Areas (APA) 2020 licensing round.
It plans to include 36 new offshore blocks along with re-offered
blocks, although the proposal is out for public consultation.
Minister Tina Bru said that despite the present challenges, the
The topsides module for Wintershall Dea’s Nova field. (Courtesy industry needed continued stable access to new acreage for
Wintershall Dea/Thor Oliversen) petroleum exploration, while the government wants to maintain
activity levels on the Norwegian shelf.
Rosenberg Worley in Stavanger has completed construction Britain’s Oil and Gas Authority too affirmed its commitment
of a new 740-metric ton (816-ton) topsides module for processing to this summer’s planned 32nd UK offshore licensing round,
hydrocarbons from Wintershall Dea’s Nova field in the North adding that it would be flexible in considering amendments to
Sea. The structure was due to be transferred to Heerema Marine existing license timelines.
Contractor’s crane vessel Sleipnir for installation on the Neptune
Energy-operated Gjøa platform. The module is also designed AKER BP COMMITS TO VALHALL PLATFORM
to supply injection water to Nova from the platform: first gas CLEAR-OUT
should follow in 2021. Aker BP has responded to the recent shocks, like many others,
by drawing up various cost-cutting measures, including putting
NORTH SEA OPERATORS APPLYING BRAKES TO on hold the non-sanctioned redevelopment of the Hod field in
EXPLORATION the southern Norwegian North Sea. But the company remains
Exploratory drilling could be one of the chief casualties of budget committed to a series of platform removals from the Valhall
cuts in the North Sea area this year, despite strong results from complex that receives Hod’s production.
several wells completed during 1Q. Following notifications of Last June, Allseas’ Pioneering Spirit removed the 3,800-t
postponements, the Norwegian Petroleum Directorate down- topsides from the QP platform, one of the three original facilities
graded its estimate of exploration wells across the Norwegian at Valhall that will go as part of the modernization of the field
sector from 50 to 40, and could not rule out further reductions center. During 2021-26 the vessel will lift and dispose of the
in the future. Some planned geophysical surveys have also been drilling and production/compression platforms and connecting
delayed or canceled offshore Norway. bridges’ and Hod’s 4,600-t unmanned production platform, the
While UK offshore exploration recovered in 2019, operators first of its type in the Norwegian North Sea. Others to be op-
had indicated activity would fall back again in 2020, according tionally removed are Valhall’s quarters platform jacket and the
to Rystad Energy. Ithaca Energy reacted swiftly to the latest oil 2/4-G jacket on the Ekofisk field, 24 km (15 mi) to the north. •
price collapse by deferring a planned well on the Fotla prospect,
and Rystad expected other UK operators to take similar action.

10 WWW.OFFSHORE-MAG.COM | OFFSHORE   MAY 2020

2005OFF04-15_fob.indd 10 4/28/20 11:38 AM


BRUCE BEAUBOUEF
HOUSTON GULF OF MEXICO •

Gulf operators keep pushing


forward despite crisis
OPERATORS AND DEVELOPERS working in the Gulf of
Mexico have continued to advance their projects, even while
the global oil market crashed and the Coronavirus pandemic
wreaked havoc with global offshore E&P market.
In April, Equinor and co-venturers Progress Resources USA
Ltd. and Repsol E&P USA Inc. reported that they encountered
oil in the Monument exploration well in the central US Gulf of
Mexico.
Drilled in Walker Ridge block 316, the well found about 200
ft (60 m) of net oil pay with good reservoir characteristics in
Paleogene sandstone. This provides an early indication of the
productive reservoir interval at the well location, the company
said.
The drillship Pacific Khamsin drilled the well to a TD of The deepwater drillship Pacific Khamsin drilled the Monument
discovery well to a TD of 33,348 ft (10,164 m). (Courtesy Equinor)
33,348 ft (10,164 m). Water depth is about 1,900 m (6,234 ft).
Bjørn Inge Braathen, senior vice president of Exploration in
North America, said: “We are pleased to have proved an accu- Meanwhile, Subsea 7 announced the award of contracts by
mulation of movable hydrocarbons in the Monument exploration Chevron U.S.A Inc. for subsea installation services related to
well. However, determining the full potential of the discovery the Anchor field in the Green Canyon area of the Gulf of Mexico.
will require further appraisal drilling.” The Anchor field is about 140 mi off the coast of Louisiana.  
The Monument exploration well is operated by Equinor Subsea 7’s scope of work includes project management,
(50%) with partners Progress Resources USA Ltd. (30%) and engineering, procurement, construction and installation of the
Repsol E&P USA Inc. (20%). SURF components including, but not limited to, the production
Monument is Equinor’s first operated exploration well in the flowlines, risers, umbilicals, flying leads, jumpers, and associated
US Gulf of Mexico since 2015. appurtenances. 
Mfon Usoro, senior research analyst at Wood Mackenzie, Project management and engineering will commence im-
said: “In the current low oil price environment, Equinor’s Mon- mediately at Subsea 7’s offices in Houston. Fabrication of the
ument discovery is a welcome one for the partners – Repsol flowlines and risers will take place at Subsea 7’s spool-base in
and Petronas subsidiary Progress Resources – and the wider Ingleside, Texas, with offshore operations anticipated to occur
US Gulf of Mexico. The discovery proves the mature region still in 2022 and 2023.  
has more life in it.” In mid-April, Genesis Energy, L.P. said that it had entered
Equinor has a strong footprint in the US Gulf of Mexico into agreements to provide downstream transportation services
(largely in non-operated assets), but the company has indicated for crude oil production associated with the deepwater Gulf of
plans to become an operator in the region, with growth focused Mexico Katmai field development, through the existing Taran-
on Paleogene-rich resources. tula production platform.
Wood Mackenzie says that it expects Monument to be one The agreements are with Fieldwood Energy LLC, Ridgewood
of Equinor’s first commercialized discoveries in the Gulf. But Katmai, LLC and ILX Prospect Katmai, LLC, two entities man-
the company could face technical challenges with the complex aged by Ridgewood Energy Corp. The existing Tarantula pro-
and often compartmentalized Paleogene reservoir. Based on duction platform is owned by Fieldwood.
the drill depth of more than 32,000 ft, the discovery could be The Tarantula platform, located in South Timbalier block
similar to other ultra-high-pressure fields requiring 20,000 308, has the capability to process up to 25,000 b/d of oil from
psi-rated equipment which indicates significantly higher de- the Katmai field development. The Katmai field development
velopment cost. is in Green Canyon blocks 39 and 40.
Exploration activity in 2020 has taken a hit as companies The Tarantula platform is currently connected to the Taran-
have quickly slashed budgets. It is likely that appraisal efforts tula lateral and the crude oil production will be delivered to the
at Monument will take a back seat until prices recover, according Poseidon crude oil system for delivery to shore. First deliveries
to Wood Mackenzie. of oil are anticipated in the second quarter of this year. •

MAY 2020   OFFSHORE | WWW.OFFSHORE-MAG.COM11

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JESSICA STUMP
• SUBSEA SYSTEMS HOUSTON

CHEVRON LETS ANCHOR CONTRACTS subsea equipment to


Chevron has awarded Aker Solutions a master agreement to provide withstand higher pres-
umbilicals for its operated oil and gas fields in the US Gulf of sures, corrosion and ero-
Mexico. sion. SAF 2507 is an aus-
The first job involves providing 24 km (15 mi) of 20,000-psi steel tenitic-ferritic stainless
tube umbilicals for the steel said to provide
Anchor development, strong resistance to
225 km (140 mi) offshore stress corrosion crack-
Louisiana in a water ing, pitting and crevice
depth of 1,524 m (5,000 corrosion, erosion corro-
ft).The work scope in- sion and corrosion fa-
cludes engineering, de- tigue, with high mechan-
sign and manufacture of ical strength and good The company will supply more than 500
km (310 mi) of super duplex Sandvik
dynamic and static con- The Anchor umbilicals will be built at the weldability features. SAF 2507 stainless steel umbilical tubes
company’s facility in Mobile, Alabama.
trol umbilicals, dynamic (Image courtesy Aker Solutions) In addition, the com- encapsulated by Prysmian Group.
and static power umbil- pany claims, umbilical (Image courtesy Sandvik)
icals and distribution equipment, and service/ installation support. seamless tubes made
The company’s facility in Mobile, Alabama, will manage the from this material provide stronger structural reinforcement in
program. smaller sizes compared to thermoplastic technology.
The master agreement is said to lay the foundation for a long-
term collaborative relationship incentivizing both companies to TECHNIPFMC SECURES AUSTRALIA, ANGOLA
jointly improve their long-term technical and commercial perfor- ASSIGNMENTS
mance through delivering multi-project synergies, repeatability, Woodside Energy has awarded TechnipFMC an integrated EPCI
and life-of-field thinking. (iEPCI) contract for the Lambert Deep and Greater Western Flank
Chevron also contracted Subsea 7 to provide subsea installation Phase 3 developments offshore northwest Australia. The company
services for the Anchor project. The work scope includes project will design, manufacture, and install equipment including subsea
management, engineering, procurement, construction and instal- production systems, flexible flowlines and umbilicals for connection
lation of the SURF components including, but not limited to, the to the Angel platform. The latter is about 120 km (74.6 mi) northwest
production flowlines, risers, umbilicals, flying leads, jumpers, and of Karratha and is connected to the North Rankin Complex via a
associated appurtenances. 50-km (31-mi) subsea pipeline.
Project management and engineering are under way at the This is the second contract under TechnipFMC’s recent five-year
company’s offices in Houston. Fabrication of the flowlines and iEPCI frame agreement with Woodside.
risers will take place at its spoolbase in Ingleside, Texas, with off- Arnaud Pieton, President Subsea at TechnipFMC, said it con-
shore operations anticipated to occur in 2022 and 2023. firmed “our common ambition to transform subsea economics
Craig Broussard, vice president for Subsea 7 US, said: “The through integration, standardization, and configurability.”
combination of the SURF scope for Subsea 7 and the ongoing BP has awarded the company an iEPCI contract for the deep-
subsea equipment delivery by OneSubsea, will allow the Subsea water Platina field development in block 18 off Angola. Water
Integration Alliance to work in partnership with Chevron to unlock depths range from 1,200-1,500 m (3,937-4,921 ft). The award covers
the value of an integrated approach to project optimization.” the manufacture, delivery, and installation of subsea trees, a pro-
duction manifold with associated subsea control and connection
MERO TO FEATURE STAINLESS STEEL UMBILICAL systems, rigid pipelines, umbilicals and flexible jumpers.
TUBES In addition, TechnipFMC has postponed its planned separation
Sandvik will supply stainless steel umbilical tubes for Petrobras’ into two new businesses. Market conditions brought on by the
Mero oil field project in the presalt Santos basin offshore Brazil. COVID-19 pandemic have deteriorated, the company said, with a
According to the company, field developments in the region more sharp decline in commodity prices and heightened volatility in
typically use thermoplastic hose umbilicals. global equity markets. The present environment therefore does
For this contract, Sandvik will supply more than 500 km (310 not justify the separation into TechnipFMC and Technip Energies,
mi) of super duplex Sandvik SAF 2507 stainless steel umbilical the company said.
tubes encapsulated by Prysmian Group. Mero is managed by the It stressed that the strategic rationale for the separation is un-
Libra Consortium, a partnership between Petrobras, Total, Shell changed. It remains committed to the transaction and will continue
Brasil, CNPC, and CNOOC. preparations to ensure that the two companies are ready for sep-
Mero Phase 1 calls for 17 wells in a water depth of around 2,000 aration once conditions have improved. •
m (6,562 ft).
According to Sandvik, deeper offshore fields require more robust

12 WWW.OFFSHORE-MAG.COM | OFFSHORE   MAY 2020

2005OFF04-15_fob.indd 12 4/28/20 11:38 AM


JESSICA STUMP
HOUSTON VESSELS, RIGS, & SURFACE SYSTEMS •

DRILLING CONTRACTORS STACKING RIGS In return, Shell has agreed to the introduction of an additional
As the low oil price and coronavirus pandemic have forced production volume and oil price-related tariff. The amendment
operators to cut budgets and cancel contracts, drilling contrac- also provides for a mutual right to terminate the contract on
tors have started stack- six months’ notice without payment of penalty, the termination
ing and retiring rigs. As not being effective before March 2022.
of this writing, Noble
Corp. has cold-stacked SOLSTAD TO RESTRUCTURE, REDUCE FLEET
the drillship Noble Bully Solstad Offshore has reached agreement with a majority of its
II and the semisub- stakeholders on a restructuring of the company.
mersible Noble Paul Key terms include:
Romano; and warm- • Around NOK10 billion ($959 million) of debt (secured debt,
stacked the jackups The drilling contractor has cold-stacked leasing obligations, bond obligations and others) to be
Noble Sam Hartley, No- the drillship Noble Bully II. (Courtesy converted to equity.
Noble Corp.)
ble Sam Turner, and • The group’s balance sheet and liquidity to be
Noble Hans Deul. In addition, the drilling contractor will retire strengthened.
the 1981-built jackup Noble Joe Beall. • The offshore service/construction/platform supply vessel
Transocean Ltd. has stacked the semisubs Henry Goodrich fleet to be rationalized, with 37 older vessels likely to be
and Transocean 712. sold or scrapped, with the long-term business based on a
Shelf Drilling has stacked the jackups Galveston Key and Key core fleet of around 90 vessels.
Hawaii. • Termination agreements in respect of the leasing agreements
for the five vessels owned by subsidiaries of SFL Corp, and
SHELL, BP RETAIN NORTH SEA FPSOS new leasing agreements on amended terms for two vessels
Teekay Corp. has entered into a new bareboat charter contract owned by a subsidiary of Ocean Yield, F-Shiplease.
with Britoil Ltd., a BP subsidiary, for the FPSO Petrojarl Foinaven CEO Lars Peder Solstad said: “We are entering a period where
for up to about 10 years. The FPSO has operated at the Foinaven global offshore activity is likely to be reduced with the impact
field west of Shetland of the COVID-19 virus and the drop in the oil price. A successful
since 1997. implementation of the restructuring will enable the company
Under the terms of to better meet the challenges of the current markets and position
the contract, Teekay is the company well for the coming years.”
expected to receive an
upfront payment of SILVER EAGLE ORDERS JACKUPS
about $67 million in Bahrain-based Silver Eagle Global has contracted PetroVietnam
cash, a nominal per day Marine Shipyard to build two self-elevating drilling units (SEDU).
rate over the life of the Based on the Levingston/MiNO Enhanced 430WC-4 design,
contract, and a lump- The FPSO Petrojarl Knarr will operate at the new series will have what Silver Eagle claims is the industry’s
the Knarr field in the Norwegian North
sum payment at the Sea until at least March 2022. (Courtesy largest deck area and deck load capacity, a cantilever with
end of the contract pe- Altera Infrastructure) modular design, and a high-speed jacking system. The self-pro-
riod, which is expected pelled design is said to be capable of working at greater water
to cover the costs of recycling the FPSO unit in accordance with depths and in harsh environments.
the EU Ship Recycling Regulations. ABS will provide classification for the series.
As part of the transaction, Teekay Offshore Partners L.P., now Matthew Tremblay, senior vice president, Global Offshore, ABS,
known as Altera Infrastructure L.P. has entered into agreements said: “These unique units offer the flexibility to adapt to the
with BP directly to provide the operations and shuttle tanker mission and payload. The large deck and cantilever are inno-
services for the FPSO. vative design features, while self-propulsion and the four legs
Altera Infrastructure subsidiary Teekay Knarr has agreed to allows the vessel to get on the job site independently. These
a contract amendment with AS Norske Shell concerning the unique design features of the Silver Eagle units will bring a new
Knarr field in the Norwegian North Sea. The contract for lease level of versatility for the offshore industry.”
and operation of the FPSO Petrojarl Knarr, which has operated Silver Eagle, which is associated with Rawabi Holding of
on the field since 2015, will now run until at least March 2022. Saudi Arabia, has also entered into a master service arrangement
Original duration of the firm contract period had been until with Baker Hughes. •
March 2021. Under the amendment, there will be a reduction
in the day rate from March 2021 to March 2022 and the fee
payable by the operator if the contract were not extended has
been waived.

MAY 2020   OFFSHORE | WWW.OFFSHORE-MAG.COM13

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BRUCE BEAUBOUEF
• DRILLING & PRODUCTION HOUSTON

Drillers batten down the hatches


for rough seas ahead
THE OFFSHORE DRILLING INDUSTRY is facing the direst again as the industry now tries to continue to cut costs and improve
moment in its 73-year history. With the collapse in oil prices and its performance in a challenging environment,” Føre said.
the growing coronavirus pandemic, operators and E&P firms are Evercore ISI sounded similar ominous portents in its Offshore
canceling and deferring tenders and terminating rig contracts in Rig Market Snapshot of April 15, 2020. The report noted that con-
a rapid succession. tracting activity fell by almost two-thirds in March, and is on track
The consensus among offshore drillers is that things will almost to trend lower for a third straight month, comparing negatively on
certainly get worse before they get better. This was the major a year-over-year basis for a fourth straight month. Only four rig
conclusion of a recent report issued by Westwood Global Energy contracts had been announced as of mid-April, trailing well below
Group’s RigLogix service. Most of the nearly 300 drilling programs the 23 contracts announced at this point a year ago. All four con-
that currently have 2020 start dates will be delayed, the consulting tracts were for less than a year, with two contracts each for jackups
firm says. and floaters but no other
Operators are typical- discernable trend except
ly cutting planned 2020 declining activity.
capex by 20-30%in re- Meanwhile, with op-
sponse to falling oil pric- erators canceling and
es, and the coronavirus deferring tenders and
is impacting movements terminating rig con-
of personnel and equip- tracts, drillers have be-
ment/services to and gun to cold stack and
from rigs. This all means retire additional rigs.
the number of idle rigs From mid-March to mid-
will soon increase April, three floaters and
substantially. a jackup have been cold
Already there has stacked while four float-
been a steady surge of ers and two jackups have
contract cancellations been retired, bringing the
and terminations. Drill- Noble Corp. plc says it has cold stacked the semisubmersible Noble Paul Romano industry total to 39 float-
(left) and has warm stacked the jackup Noble Sam Hartley (right).
ing contractors could be ers/87 jackups cold
facing a combined loss of revenue of around $3 billion in 2020 and stacked (both 17% of the current available supply x-newbuilds)
2021, says Rystad Energy. The analyst estimates the total value of and 141 floaters/109 jackups retired since 2014. Evercore said that
agreed contracts over the two years at $30 billion. So far, in the it expected a couple more contracts to be announced in the second
present crisis, six rig years of contracts have been canceled, amount- half of April, but added that “contracting activity is likely to be
ing to around $400 million in value, and more look set to be called depressed for several more quarters.”
off as operators cut capex budgets and delay projects. Some of the more notable recent contract cancellations and
“More than $22 billion in contract value was wiped off the books early terminations include:
as a result of contracts being cancelled between 2014 and 2017,” * ExxonMobil has notified Borr Drilling Ltd. of the early termi-
said Oddmund Føre, Rystad head of Offshore Rig Market Services. nation of the contracts for the jackups Gerd and Groa offshore
“Now, in the infancy of a new downturn, a market that was only Nigeria. The rigs were under contracts originally committed until
beginning to return to a healthy level of contracting activity, contract April 2021 and May 2021, respectively.
volumes and day rates has seen its hopes crushed.” * VAALCO has released Vantage Drilling International’s jackup
Five years ago, following the previous oil price collapse, E&P Topaz Driller after the rig completed a successful workover on the
companies canceled many contracts and chose not to declare South East Etame 2H well offshore Gabon.
contract extension options, subsequently re-hiring rigs at lower * Noble Corp. plc says it has cold stacked the drillship Noble
rates. But next year especially, there may be few contracts left for Bully II and the semisubmersible Noble Paul Romano; has warm
them to cancel. So new contracts could be difficult to secure in stacked the jackups Noble Sam Hartley, Noble Sam Turner, and
the current environment. Noble Hans Deul; and will retire the jackup Noble Joe Beall. •
“We expect day rates to be pushed down to opex levels once

14 WWW.OFFSHORE-MAG.COM | OFFSHORE   MAY 2020

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OFFSHORE WIND ENERGY •

AKER SOLUTIONS, COGNITE SECURE DIGITAL SUBSEA 7 WINS CONTRACT OFFSHORE GERMANY
OFFSHORE WIND ENERGY TECHNOLOGY GRANT Subsea 7 has announced the award of a sizeable contract by
Aker Solutions and Cognite have been awarded a $2-million innogy Kaskasi GmbH for the Kaskasi offshore wind farm project,
grant from the California Energy Commission (CEC) for a project located about 35 km northwest of Heligoland in the German
called NextWind Real Time Condition Monitoring. sector of the North Sea.
The project is focused on next generation solutions in wind The contracted work scope includes the transport and in-
through digitalization and aims to develop a holistic digital stallation of the offshore substation foundation, 38 wind turbine
solution that will enable monitoring the condition of an offshore monopile foundations and 52 km of inner array grid cables in
floating wind farm and its impact on the environment via live water depths of between 18 and 25 m. Offshore installation is
data streaming. scheduled for execution in 2021 and 2022 using Seaway 7’s heavy
lift, cable lay and support vessels. When completed, the Kaskasi
offshore wind farm will have an installed capacity of 342 MW.

CAPE HOLLAND TO SUPPLY VIBRO LIFTING TOOL


CAPE Holland has been awarded a contract by Seaway 7 to
supply a Vibro Lifting Tool for the installation of the monopile
foundations for the Kaskasi offshore wind farm.
This will be the first offshore wind project whereby the
monopiles will be driven to final penetration with a vibro ham-
mer only, says CAPE Holland.
Seaway 7 first used the CAPE
vibro equipment in 2012 to drive
Aker Solutions and Cognite will develop a digital solution that will the monopiles for the Riffgat project
enable condition monitoring of an offshore floating wind farm. to stabile depth. Since then they
(Courtesy Aker Solutions) used the vibro equipment on a
number of oil and gas projects and
Aker Solutions, partnering with Cognite, was selected for last year also on an offshore wind
the grant award as part of the California Energy Commission’s farm project in Taiwan.
Electric Program Investment Charge (EPIC). The program The Vibro Lifting Tool for this
provides grants for companies applying research and projects project will have multiple vibro
designed to help develop next-generation wind energy tech- hammers linked together to provide
nologies. The projects must include objectives that increase a total of 1920 kgm. A specially de- CAPE Holland says it
the competitiveness, performance, and reliability of wind gen- veloped clamping system will be will supply a Vibro Lifting
Tool (VLT) for work on the
eration while reducing costs and effects on the environment used to create the interface be- Kaskasi offshore wind farm.
and wildlife. tween the Vibro Lifting Tool and (Courtesy CAPE Holland)
A digital twin model of physical offshore wind assets will be the flanged top of the monopiles.
developed to assess conditions and integrity management. This
real-time information will allow access and analysis of data to PULSE WINS OFFSHORE TAIWAN WIND FARM
help reduce operating expenses and maintenance costs by CONTRACT
improving production efficiencies. Making this data available Ørsted has contracted Pulse Structural Monitoring, an Acteon
to a wide range of users will allow for additional understanding company, to provide digital structural monitoring and insight
of environmental and wildlife impacts to help reduce services and equipment for the Greater Changhua wind farm
mitigation. offshore Taiwan.
In April 2018, the Redwood Coast Energy Authority selected The company will design, fabricate, install, and commission
a consortium which includes Aker Solutions, Principle Power its monitoring instrumentation on three wind turbine founda-
and EDPR Offshore to enter into a public-private partnership tions. It will supply its NX2 digital platform to acquire a range
to pursue the development of the proposed Redwood Coast of high-quality measurements that include bending and torsional
Offshore Wind Project. The 100-150 megawatt floating offshore strain, inclination, displacement and acceleration in key com-
wind farm is planned to be located more than 30 km off the ponents of the jacket legs, nodes and wind turbine generator
coast of Humboldt Bay, and is expected online in the mid-2020s. towers.
The team intends to use this project as a case study for the new This Acteon integrated solution will also include corrosion
initiative due to its relevance. and anode monitoring equipment. •

MAY 2020   OFFSHORE | WWW.OFFSHORE-MAG.COM15

2005OFF04-15_fob.indd 15 4/28/20 11:38 AM


• CRISIS MANAGEMENT

Industry responds to low oil prices,


coronavirus pandemic
Reduced capex, project delays and cancellations

JESSICA STUMP, ASSISTANT EDITOR

OIL AND GAS CAPITAL EXPENDITURE, BY COMPANY IN 2020


THE OFFSHORE OIL AND GAS indus-
try began 2020 on a cautiously optimistic 40 60%
Initial Capex
note. For those that survived the 2014- 35 Revised Capex
50%
2020 Capital Expenditure

Budget Cut
2016 downturn, it appeared that there was 30
light at the end of the tunnel. 40%
(US$ billions)

25

Budget cut
That optimism was quickly shattered
with the onset of the novel COVID-19 20 30%
(coronavirus) pandemic and the equally
15
rapid collapse in crude oil prices. The lock- 20%
downs and quarantines that followed have 10
10%
taken a huge bite out of oil demand; this 5
has further eroded oil prices. The result
0 0%
is an unprecedented level of uncertainty
Saudi Aramco
Shell
Chevron
Total
Petrobras
Equinor
Eni
ConocoPhillips
EOG Resources
Occidental Petroleum Corp.
Ecopetrol
Suncor Energy
Repsol
Woodside Petroleum
Pioneer Natural Resources
Canadian Natural Resources
OMV
Continental Resources
Husky Energy
Marathon Oil Corp.
Aker BP
Devon Energy Corp.
Noble Energy
Santos
in the market.
The industry is having to contend
with three fundamental challenges, says
Wood Mackenzie. The first is substantial
reduction in demand for equipment and
services. Stricter capital discipline from
operators will reduce demand substan- Source: GlobalData Oil and Gas Intelligence Center
tially this year both onshore and offshore,
which means that only a handful of major REDUCED CAPITAL SPENDING PLANS
projects will go forward this year. The sec- Global capex for exploration and production companies is expected to drop by up to
ond challenge will be a test of financial $100 billion this year, under Rystad Energy’s updated base case scenario of $34/bbl in
resilience. Companies across the supply 2020 and $44/bbl in 2021. According to the analyst’s data, the expected decline this
chain had already cut back significantly year will make 2020’s capex volumes, estimated at about $450 billion, the lowest in 13
in the past few years. It will be difficult for years. Its estimates before the coronavirus pandemic had indicated E&P would remain
many to identify further savings without flat year-on-year.
drastic measures such as refinancing or In a low case scenario, where Brent averages $25/bbl in 2020, global investments may
the restructuring of business models. Staff plunge to around $380 billion this year, falling to almost $300 billion in 2021, a 14-year
cuts and bankruptcies appear inevitable. and a 15-year low respectively.
The third challenge will be excess The estimated cost cuts will be mainly achieved by lower activity within US shale,
capacity. Companies holding onto idle delays to projects that are yet to reach the final investment decision (FID) stage, deferred
assets “just in case” will have to think exploration activity, and cost cuts within development and production for conven-
again. The prospect of sub-$40/bbl oil tional assets.
will force profound change and pain in By the end of March, GlobalData reported that E&P companies had cut more than
the short term, Wood Mackenzie said, $50 billion in capex.
but could ultimately create a more sus- Daniel Rogers, Oil and Gas Analyst at GlobalData, said: “Of the announced $50 billion
tainable business for those that survive. in cuts to date, approximately 20% of that is coming solely from Saudi Aramco, which
could have implications for its ongoing expansion projects in the country. Elsewhere,
across the supermajors, the investment cuts are within the 20-25% range, resulting in

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CRISIS MANAGEMENT •

multi-billion-dollar pull backs in new projects and non-critical investments.” 2020, and now envisages start-up of the
At that time, the analyst found that the the average announced capex cut for 2020 is two fields no earlier than late 2022.
29% from original forecasts. On the higher end of the spectrum, US operators with sig- Equinor and Husky Energy have report-
nificant shale acreage and Australian operators with imminent large-scale LNG proj- edly postponed the Bay du Nord project
ects have taken the most drastic reduction measures. offshore eastern Canada.
“The types and severity of the cuts seen will differ depending on stakeholder require- Husky also has deferred by a year devel-
ments. National oil companies will strive to protect obligated payments to the govern- opment of the block 15/33 oil field offshore
ment, whilst maintaining production volumes, whereas independent oil companies will China and put the brakes on developing
focus on strengthening balance sheets and continuing to generate returns for investors the MDA-MBH gas field offshore Indo-
in a challenging environment,” Rogers concluded. nesia. In addition, the company has sus-
In early April, ExxonMobil and BP cut capex spending by 30% and 25%, respectively. pended major construction activities
related to the platform-based West White
PROJECT DELAYS Rose development offshore Newfound-
Of the 50-plus projects Wood Mackenzie had identified as potentially going ahead land and Labrador.
this year, only 10 now look to have a chance of proceeding. According to Rob Morris Aker BP has put on hold the non-sanc-
of Wood Mackenzie’s upstream research team, “only those with the strongest balance tioned Hod redevelopment in the Valhall
sheets will even contemplate major project FIDs. The majors and certain NOCs will area of the southern Norwegian North Sea.
take the lead, while projects with financially stretched partners and at the higher end Siccar Point Energy E&P Ltd. and joint
of the cost curve will struggle.” venture partner Shell UK have deferred the
Projects least at risk of deferrals are thought to include large deepwater oilfield devel- planned sanction date for the deepwater
opments off Guyana and Brazil, and ‘niche LNG’, including low-cost greenfield and feed- Cambo project west of Shetland from 3Q
gas backfill at legacy liquefaction projects. 2020 to the second half of 2021.
“Two-thirds of all greenfield projects, representing $110 billion of total future invest- INEOS FPS delayed this summer’s
ment, face almost certain deferral,” Morris said. “Some project sanctions will be delayed planned shutdown of the Forties Pipe-
to 2021 and beyond. Some will be completely reworked or even put on hold perma- line System in the UK central North Sea
nently. These include projects with weaker strategic drivers, high breakevens, and/or to spring 2021.
financially distressed operators. Aker Energy has postponed the Pecan
“Africa, the North Sea, Southeast Asia, and Australian LNG face mass project defer- project in the Deepwater Tano Cape Three
rals. Australian LNG is perhaps the most high-profile casualty. As we predicted, both Points block off Ghana.
Woodside Petroleum and Santos have already announced delays at Scarborough and The BW Energy-led Dussafu joint ven-
Barossa until market conditions improve.” ture has temporarily postponed the start
At the time of writing, many offshore projects have been delayed. of the Ruche Phase 1 development off-
Woodside has pushed back the FID for the Scarborough gas project and Pluto Train shore Gabon.
2 on the North West Shelf to 2021. The Browse gas project has also been deferred. FAR Ltd. is working with Woodside and
Jadestone Energy has delayed development of the Nam Du and U Minh gas fields other partners in the Sangomar project
offshore Vietnam. The company had assumed receipt of government approvals by 1Q offshore Senegal to examine how costs can
be reduced, expenditure delayed or both
DOLLAR VALUE BY REGION FOR 2020 CONTRACT OPTIONS and any impact on the timeline to first oil.
ExxonMobil has delayed the green-
Africa $328.0 light on Mozambique’s multi-billion-dol-
Southeast Asia $256.3
lar Rovuma LNG project. The company
said it is collaborating with the partners
Middle East $238.8
and the government to optimize develop-
North Sea $188.2 ment plans through improved synergies
US Gulf of Mexico $136.1 and assessing opportunities related to the
Brazil $106.0 current lower-cost environment. BP and
Kosmos Energy are working to defer the
Mediterranean $101.7
2020 Tortue Phase 1 capital spending for
Eastern Canada $55.0 their multi-billion-dollar Greater Tortue
Australia $47.1 Ahmeyim gas-condensate project off Mau-
South America - Other $44.5 ritania and Senegal. The Phase 1 timeline
is expected to be delayed by 12 months.
Mexico $42.7
Shell’s Bonga Southwest, ExxonMo-
Others $44.5 bil’s Bosi, Owowo West and Uge-Orso, and
Source: RigLogix Chevron’s Nsiko projects offshore Nigeria

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• CRISIS MANAGEMENT

Tullow Oil has cut short the drillship


Maersk Venturer contract offshore
Ghana. (Image courtesy Maersk Drilling)

are likely to be delayed. equipment/services to and from rigs. This all means the num-
INPEX’s Abadi project offshore Indonesia, the Limbayong proj- ber of idle rigs will soon increase substantially. For rig owners,
ect in Malaysia, Shwe Yee Htun in block A6 off Myanmar, and the some of which were slowly inching their way back to profitability,
Kelidang Cluster in Brunei, are potentially at risk. the road to recovery will be longer, and some will be impacted
ExxonMobil said that developing the numerous deepwater more than others.
discoveries in the Stabroek block offshore Guyana remains an Terry Childs, head of RigLogix, pointed out many companies
integral part of its long-term growth plans. Operations onboard are having to face up to debt payments due in 2021. One major
the FPSO Liza Destiny are unaffected, and the second phase of rig owner believes nearly every public driller will be in Chapter
the Liza field development remains on target for start-up in 2022, 11 this year or next.
with the FPSO Liza Unity currently under construction in Singa- Currently, rig operations in most parts of the world continue
pore. However, as the company waits for government approval to be supported by rig owners, but with strict protocols in place
to proceed with a third production vessel for the Payara devel- concerning crews, equipment and supplies. But a growing num-
opment, some planned 2020 activities are in the process of being ber of drilling rig contractors are saying that they expect to cease
deferred, and this could potentially delay the start of production drilling soon and warm-stack their rigs, with the impact caused
by between six and 12 months. by COVID-19 on logistics cited as the main problem. And should
more countries end up adopting no-travel bans or lockdowns,
DRILLING MARKET this will only extend the number of idle rigs.
The consensus among drilling rig owners and operators is that RigLogix’s data shows that Africa, Southeast Asia, and the
things will likely get worse before they get better, according to Middle East have the highest dollar amounts at stake, and col-
a recent analysis offered by Westwood Global Energy Group’s lectively comprise 50% of the total rig options value. In South-
RigLogix service. This will be especially true if current conditions east Asia and the Middle East, the options are entirely related to
persist, the report said. jackup contracts, whereas the $136.1 million in the US Gulf of
Operators are typically cutting planned 2020 capex by 20-30%, Mexico is mainly for floating rig options.
and the coronavirus is impacting movements of personnel and Valaris ($331 million) and Transocean ($195 million) are said

18 WWW.OFFSHORE-MAG.COM | OFFSHORE   MAY 2020

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to have the highest dollar amounts of options to be exercised
and are therefore the most exposed.
Most of the nearly 300 drilling programs that currently have
2020 start dates will be delayed, Childs claimed. The planning
process for certain drilling programs is continuing, but at a much
slower pace.
Some contract awards should continue, particularly where
drilling is not planned until 2021 or beyond, but it seems prob-
able that the number of contracts finalized over the next few
months will be minimal.
As of this writing, Valaris has received early termination notices
for two rigs offshore Angola. Total is expected to terminate the
contract for the drillship VALARIS DS-8, which was expected to
end this November. Chevron has terminated the contract for the
VALARIS JU-109, which was scheduled to operate until July 2021.
As a result, the rig’s contract was expected to end last month.
Valaris said it expects to receive additional notices of contract
terminations and requests to renegotiate contract day rates and
terms considering increased market uncertainty.
Tullow Oil has notified Maersk Drilling of the early contract
termination for the drillship Maersk Venturer offshore Ghana. The
drillship will now likely finish its campaign in June, 20 months
ahead of the anticipated termination date.
Shelf Drilling and Dubai Petroleum have agreed to amend the
contract end dates for the jackups Shelf Drilling Tenacious and
Shelf Drilling Mentor from January 2022 to September 2020 and
January 2022 to October 2020, respectively.
ExxonMobil has notified Shelf Drilling of the early contract
termination for the jackup Trident XIV offshore Nigeria. The
contract end date has changed from February 2021 to July 2020.
ExxonMobil has also notified Borr Drilling Ltd. of the early
termination for the jackups Gerd and Groa offshore Nigeria. The
rigs were under contracts originally committed until April 2021 INTRODUCING A NEW SERIES OF MARINE ELEVATORS
and May 2021, respectively.
Noble Corp. has warm-stacked the jackups Noble Sam Hart-
ley, Noble Sam Turner, and Noble Hans Deul; cold-stacked the
drillship Noble Bully II and the semisubmersible Noble Paul
Romano; and will retire the jackup Noble Joe Beall. Saudi Aramco
MARINE ELEVATORS
has requested a reduction to the operating day rates for the jack- Alimak is proud to launch a new innovative Marine
ups Noble Scott Marks, Noble Roger Lewis, Noble Joe Knight, and Elevator, designed for marine applications. The all
Noble Johnny Whitstine. new ALIMAK ME is a passenger and freight elevator
Drilling contractors could be facing a combined loss of reve- suitable for an array of marine vessels, built on
nue of around $3 billion in 2020 and 2021, according to Rystad Alimak’s tried and trusted traction technology. The
Energy. It estimated the total value of agreed contracts over the ALIMAK ME is available in two car sizes, offers
two years at $30 billion. So far, in the present crisis, six rig years capacities of up to 1,600 kg and has superior ride
of contracts have been canceled, amounting to around $400 mil- comfort, all without the need for a machine room.
lion in value, and more look set to be called off as operators cut Alimak continues to invest in new technologies and
concepts to improve the productivity and sustain-
capex budgets and delay projects.
ability of the industry.
“More than $22 billion in contract value was wiped off the
books as a result of contracts being canceled between 2014 and Contact us at info@alimak.com for more information.
2017,” said Rystad head of Offshore Rig Market Services Oddmund
Føre. “Now, in the infancy of a new downturn, a market that was
only beginning to return to a healthy level of contracting activ-
ity, contract volumes and day rates has seen its hopes crushed.”
www.alimak.com

MAY 2020   OFFSHORE | WWW.OFFSHORE-MAG.COM19

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• CRISIS MANAGEMENT

could cause slight delays.


As for seismic survey contractors, Pol-
arcus has received two project cancel-
lations. One was for an XArray marine
seismic acquisition project in the Asia/
Pacific region that was due to start in 2Q
2020. The other was a 3D marine seismic
acquisition project offshore West Africa.
EMGS canceled a controlled source elec-
tromagnetic seismic survey offshore Mau-
ritania and Senegal after BP postponed the
project. The company has also decided to
cold-stack the Atlantic Guardian.
PGS has decided to cold-stack two of its
eight currently operated 3D acquisition ves-
EMGS is expected to cold-stack the EM vessel Atlantic Guardian. (Image by Tom sels during the current quarter and warm-
Gulbrandsen / courtesy EMGS) stack a third in 3Q.
Shearwater GeoServices has received
EXPLORATION two project cancellations. The first includes
This year was slated to be another good year for exploration with about 45 countries a short project for Woodside offshore West-
launching at least 52 lease rounds, about 60% of them in offshore areas, according to Rys- ern Australia that was part of an award
tad Energy. However, more than half of the world’s planned licensing rounds are likely to announced last November. Reliance Indus-
be canceled this year due to the combined effect of the COVID-19 pandemic and low oil tries canceled a 1,500-sq km (579-sq mi)
prices. New licensed offshore acreage is likely to fall by about 60% compared with 2019 levels. survey over block KG-UDWHP-2018/1 in
Aatisha Mahajan, Rystad Energy’s senior upstream analyst, said: “The unlikely upcoming the Krishna-Godavari basin offshore India,
lease rounds represent around 54% – a worrisome sign for global exploration. A number awarded in January. The Polar Duchess had
of factors together make these rounds unlikely to go ahead, including the oil price drop, a been due to start the program in the cur-
global cut in investments by almost 20%, a lack of skilled manpower due to the COVID-19 rent quarter.
pandemic, fiscal regimes that are proving unattractive in the current environment, and a The current market will bring many
lack of interest among potential participating companies.” challenges for exploration drilling. Rystad
According to the analyst, licensing rounds are unlikely to take place in the UK, Ukraine, has identified at least nine planned explo-
Romania, Germany, Colombia, Brazil, Ecuador, the Dominican Republic, Thailand, Uzbeki- ration wells in Norway, Brazil, the Bahamas,
stan, Myanmar, the UAE, New Zealand, Ivory Coast, Algeria, Tanzania, Senegal, Somalia, Guyana, the US, Gambia, and Namibia that
Liberia, Ghana, Equatorial Guinea, Angola, South Sudan, and Nigeria. would target a combined 7 Bboe are at risk
Licensing rounds in the US, Suriname, Egypt, Russia, and China hang in the balance of suspension.
and are marked as tentative. However, licensing rounds in Malaysia, Trinidad and Tobago, Senior upstream analyst Palzor Shenga,
Norway, India, Lebanon, and Canada are likely to go ahead. These countries look well on said: “Given the prevailing global situa-
track to continue their lease rounds as scheduled, although the current industry volatility tion we now foresee that the cumulative

The Center for


High-Performance
Computing in Houston
will help advance
the pace of scientific
discovery in the fight
to stop the virus.
(Image courtesy BP)

20 WWW.OFFSHORE-MAG.COM | OFFSHORE   MAY 2020

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CRISIS MANAGEMENT •

discovered volumes by the end of the year reusable personal protection equipment for health care workers. The company said it is
could go even below the 2016 level of 8.9 applying its experience with and know-how in polymer-based technologies, in combina-
Bboe, which was the decade’s lowest. This tion with GCMI, to facilitate development and expedite third-party production of inno-
will solely depend upon how many key vative safety equipment.
wildcat wells will still see a spinning drill Shell is part of a consortium that has been developing new face protectors for doctors,
bit in the coming months, as some of them made of snorkel masks. These adjusted masks are said to cover the face fully and are con-
could be either suspended or postponed.” nected to a medical filter by a part produced using 3D printers at the Shell Technology
Bahamas Petroleum Co. has re-sched- Centre Amsterdam. •
uled drilling of its first exploration well
(Perseverance #1) off The Bahamas to
mid-October onwards.
Oryx Petroleum and FAR Ltd. have post-
poned exploration wells in the AGC Central
license area offshore northwest Africa and MAXIMIZE
The Gambia, respectively.
PRODUCTION.
COMBATING CORONAVIRUS
Even as it scales back its E&P campaigns,
MINIMIZE
the industry has been making its expertise
and technologies available to help stop the
DOWNTIME.
spread of the coronavirus. For over fifty years, Nylacast have helped
BP will provide access to its Center for and assisted its customers to enhance project
performance, efficiency and safety through
High-Performance Computing (CHPC) in
the design, manufacture and supply of
Houston to advance coronavirus research. award-winning materials technology.
It houses what the company claims is one
Manufacturing components from initial
of the world’s largest supercomputers for chemistry to end product, Nylacast’s full
commercial research and processes enor- engineering solutions enhance performance
mous amounts of data. It has 16.3 petaflops and reduce maintenance through their
of computing capability, allowing it to pro- corrosion resistance, low weight and
low friction.
cess more than 16 million billion calcula-
tions per second and complete a problem in How can you enhance your projects?
Speak to our engineering team today.
an hour that would take a laptop nine years.
Petrobras will direct part of its super-
computer processing capacity to helping
researchers fight the virus. The Santos
Dumont, said to be Latin America’s largest
supercomputer, is in the Laboratório Nacio-
nal de Computação Científica in Petrópolis,
Rio de Janeiro. The other supercomputer
is in Salvador, northeast Brazil. The com-
pany plans to allocate 60% and 50% of the
two supercomputers’ capacity, totalling 3
petaflops. This will be used to accelerate
the simulation time so that researchers
can achieve results faster.
Eni has made its HPC5 supercomputer
and molecular modeling capability avail-
able for research. Unveiled in February, the
HPC5 hybrid architecture is said to make
the algorithms for molecular simulation
particularly efficient.
ExxonMobil and the Global Center for
Medical Innovation (GCMI) are collaborat-
ing to swiftly re-design and manufacture
www.nylacast.com/energy | info@nylacast.com
MAY 2020   OFFSHORE

2005OFF16-26_crisis.indd 21 2005OFF_Nylacst45 1 4/28/20


2/21/20 11:38 AM
8:54 AM
• CRISIS MANAGEMENT

Pandemic, falling prices take steam


out of floating production market
Sanctioned projects expected to proceed, but with delays

DAVID BOGGS, ENERGY MARITIME ASSOCIATES

PRIOR TO THE COVID-19 pandemic UNITS ON ORDER BY YARD LOCATION (FPSOs, SEMIs, FLNGs)
and concurrent crash in oil prices, 2020 Hull type (group) FLNG SEMI FPSO

was on track to be a strong year for new 10

Number of units
project awards and ongoing construc-
tion in the floating production sector. Redeploy 5
There are currently 23 FPSOs, seven 2
1 FPSO
production semisubmersibles and three 0 1 SEMI

FLNG units on order. These 33 units 10


Number of units

are being built or integrated in over 15 6


Conversion 5
main facilities worldwide. 3
Almost 90% of these units are being 2 FLNG 1
0 1 FPSO
fabricated in Asia (China, Singapore, 10
Korea). Confidence among contrac- 10
Number of units

1 SEMI

tors, yards and operators was high, but Newbuild 5 5


5 9 FPSO
this has changed as the realities of the 2 SEMI 1 FLNG
3 SEMI
global pandemic have set in. 3 FPSO 1
0 1 FPSO
In our latest models, we are antic- China Singapore Korea Europe Brazil TBD
ipating that few new projects will be Source: Energy Maritime Associates Pte Ltd., April 2020
sanctioned this year, and that our pre-
vious five-year forecast for new orders began conversion for Yinson’s Marlim II in 2020. A newbuild for TechnipFMC
should be reduced by approximately (BP’s Tortue) is under way in Zhoushan. COOEC is working on four newbuilt units
20%. (three FPSOs and one Semi).
After taking a pause for a few years, Korean yards have resumed offshore pro-
CONSTRUCTION ACTIVITY duction projects, especially production semis. Currently on order are three produc-
China has become the dominant loca- tion semis, one FLNG, and one FPSO. Daweoo was awarded the hull for Chevron’s
tion for all types of FPSOs, account- Anchor semisubmersible and Hyundai received an order for the King’s Quay pro-
ing for two-thirds of FPSOs on order. duction semisubmersible. This is its first large FPS order since the Jangkrik FPU
This includes nine newbuilt hulls as in 2014. Samsung has remained the most active, with orders for the Coral South
well as six conversions from oil tank- FLNG, the Mad Dog 2 semi, and a $1.1-billion FPSO award from Reliance India.
ers. CSIC-Dalian leads the way with In Singapore, activity is under way for eight units: four FPSOs, two Semis, and
five FPSOs for Modec – two newbuilds two FLNGs. SBM is carrying out topsides work for some of its hulls built in China
(Bachalau and Barossa) and three con- that are destined for Guyana. For the Liza 2 FPSO, SBM awarded 22,000 tons of
versions for Petrobras (Marlim I, Buzios topsides to Dyna-Mac followed by integration by Keppel. The Payara FPSO will
V, and Mero I). CSSC-SWS and China likely follow the same model. Bumi Armada had previously done its conversions
Merchants Heavy Industry are each in Keppel, but selected Sembcorp to convert the Cluster II FPSO for ONGC. The
building two FPSO hulls for SBM Off- hull for the Karish FPSO is scheduled to arrive in Sembcorp in 2Q 2020 for top-
shore (Mero 2, Payara, and two specu- sides integration. Sembcorp is also executing two production semis for Shell. In
lative order for future projects). The 2019, an LOI was placed for the Whale semi, which is an 80% copy of Vito, which
speculative orders are most likely for was ordered in 2017. Keppel is executing FLNG projects for Golar. After complet-
expected awards in Brazil and Guy- ing the Hilli Episeyo FLNG, Keppel began work on conversion of the 1976-built
ana. The Cosco group has four FPSOs Gimi to a 2.5 mtpa FLNG unit for BP’s Greater Tortue field offshore Mauritania
under way in four different yards. The and Senegal. Golar and Keppel also have an agreement to convert the 1977-built
Shanghai and Dalian yards are convert- Gandria, but no physical work has yet begun.
ing vessels for Modec, while Qidong Fabrication activity in Norway is under way to upgrade two existing units. In

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CRISIS MANAGEMENT •

ORDER BACKLOG BY FIELD OPERATORS (FPSOs, SEMIs, FLNGs)

Main contractor
Modec Petrobras Equinor Eni Woodside Santos
SBM Petrobras TBD ExxonMobil
Sembcorp Petrobras Shell Equinor
TechnipFMC BP Eni Energean
Samsung BP Reliance
Golar LNG TBD BP
COOEC CNOOC
Yinson Petrobras
Bumi Armada ONGC
Hyundai Murphy
Daewood/Kiewit Chevron
Fluor Shell
Kvaerner Equinor
Worley Vaar Energy
0 1 2 3 4 5 6 7 8 9

Number of units
Source: Energy Maritime Associates Pte Ltd., April 2020

August 2019, Rosenberg Worley was awarded an EPCI con-


tract to upgrade the 1999-built Jotun A FPSO. The unit will
be taken to Worley’s Stavanger yard for 15 months to enable
25 years of additional production on the Balder field. The
1997-built Njord A production semi is being upgraded by
Kvaerner in its Stord yard.
Cost pressures have resulted in reduced local content
requirements for many new projects. Some tenders for Petro-
bras FPSOs have been revised with lower levels of local con-
tent. As a result, yard activity in Brazil has been declining as
orders placed in 2010-2013 are completed. SBM mothballed
its Brasa yard until at least 2020. The main project currently
under way in Brazil is integration of the P-71 topsides by
Jurong Aracruz. 

LEADING CONTRACTORS
The 33 production units are being executed by 14 different
contractors. Half of these are juggling multiple projects, with
the other half are working on a single project.
Modec is the busiest by far with eight FPSOs on order,
including four for Petrobras. Of the eight units, six are con-
versions and two are newbuilds. Modec will lease and operate
the FPSOs for Petrobras and Eni (Amoca), while the FPSOs
for Woodside (Sangomar), Santos (Barossa), and Equinor
(Bacalhau) to be completed under EPC contracts. SBM has
five FPSOs under way, with two for ExxonMobil in Guyana,
Mero 2 for Petrobras, and two speculative hulls earmarked
for future requirements. SBM will lease these FPSOs, with
ExxonMobil expected to take ownership after two years of
operation.

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• CRISIS MANAGEMENT

Sembcorp is building three new units (Vito and Whale pro- These units are primarily for locations in Brazil, North Sea, and
duction semis for Shell and the FPSO hull for Equinor’s Johan West Africa. Over the next five years, we foresee that Petrobras
Castberg) in addition to integrating the P-71 FPSO in its Brazil- and other large operators resume ownership of FPSOs rather
ian yard. TechnipFMC is the EPCI contractor for three develop- than sign 15- to 20-year leases. Leased units tend to be con-
ments (Energean’s Karish FPSO, Eni’s Coral South FLNG, and versions, but there has been a recent trend toward newbuilt
BP’s Tortue FPSO) and has engaged different yards for each hulls used by leasing contractors. SBM has placed five orders
project. Samsung, Golar, and COOEC have two units each. for its newbuilt Fast4Ward FPSO hulls while Modec has two
orders for its M350 FPSO. Both of these concepts are designed
COVID-19 AND THE OIL PRICE CRASH to reduce costs through standardization and repeatability.
With oil companies slashing capex across the board, only the Over the next five years, we forecast that newbuilt FPSOs will
financially strongest companies will proceed with new proj- account for almost half of all orders.
ects. Those that do move forward will only select the biggest Most of these new hulls will be constructed in China with
and best fields to be developed. We believe that Petrobras a few in Korea and Singapore. Conversion work will continue
and ExxonMobil will continue with plans for multiple, large to be dominated by yards in Singapore, Malaysia and China,
deepwater FPSOs. However, smaller companies that are not although European and Middle Eastern yards will also com-
as financially sound are revisiting plans and commitments. pete, particularly for upgrading existing units.
Most companies are looking to cancel uncommitted capi- Historically, redeployed units have accounted for around
tal and reduce or delay capital that had been committed. One 15% of FPSO orders, but we expect this number to increase to
FPSO project has been cancelled to date. In February 2020, 25% in the next five years. This is due to the large number of
Aker Energy issued an LOI for a leased FPSO on its deepwa- available units (30 as of April 2020), as well as the drive for cost
ter Pecan field offshore Ghana. However, this was cancelled effective and fit for purpose solutions. The majority of rede-
by Aker Energy on March 31. We anticipate that the devel- ployments will be small to mid-size FPSOs that can be mod-
opment will be revised to reduce costs, and that the project ified and given a life extension for another five to 10 years. In
could be re-sanctioned in 2021/22. The tender process had addition, the owners of idle FPSOs are often willing to accept
begun under Hess, which sold its stake in the field to Aker more flexible commercial terms, such as a lower fixed rate
Energy in 2018. The unit will be spread moored in 2,400 m of with an additional tariff linked to production and/or oil price.
water and is designed to produce 110,000 b/d of oil and 100 FLNG. Orders for one to four FLNGs are possible over the
MMscf/d of gas. The FPSO was to be leased for 10 years firm, next five years with a total capital cost between $3.5 and $9.0
with options for another five years. billion. The orders will range from small liquefaction-only
Going forward, we expect sanctioned developments to pro- barges to turret-moored gas processing and liquefaction units
ceed, with delays of three to 12 months due to supply chain with capacities up to 3.5 mtpa. The Petronas FLNG 2 was
disruptions and efforts to delay capex. Projects that are still in delivered in February 2020. Golar’s second FLNG unit, Gimi,
the engineering phase may experience larger delays, as there is scheduled to start operations on BP’s Tortue field in 2022.
is a smaller penalty for delaying a development at that stage. Production semis. Orders for three to six production semis
Once construction is under way, delaying the project could are expected over the next five years with a total capital
prove more costly than keeping to the plan. However, given the cost between $2.7 and $4.3 billion. Almost all will be pur-
need to preserve cash, it is certainly possible that some EPC pose-built hulls ordered by field operators, although some
projects could be stopped mid-way. This is especially true if may be financed through leasing or tolling agreements. The
financing has not been secured for the complete development. required production semis will likely be installed in the Gulf
of Mexico, Australia, and West Africa.
FIVE-YEAR FORECAST
The following is our low to mid-case 2020-2024 forecast, which LOOKING FORWARD
was created pre-COVID 19 and the oil price crash of March We believe that active projects in the floating production sec-
2020. As mentioned earlier, we expect very few projects to be tor will be challenged this year as companies try to preserve
sanctioned for the rest of the year. Therefore, the following cash, deal with supply chain interruptions and push schedules
forecast should be reduced by approximately 20%. to defer spending. Projects that are under way with secure
FPSOs. Orders for 40 to 60 FPSOs are expected over the next financing will most likely be completed, although not on the
five years with a total capital cost between $50.3 and $76.3 original schedule. Early stage projects may be delayed sub-
billion. Some 60% of orders will be leased, 40% owned. Rede- stantially or cancelled.
ployment of existing units will satisfy around 25% of future There had been fears of looming capacity constraints in the
FPSO requirements. Newbuilt hulls will be used for approxi- supply chain, which should now disappear. When oil prices
mately 40% of all orders. re-stabilize, we strongly believe that orders for floating produc-
The currently installed FPSO fleet is comprised of around tion systems will resume, particularly offshore South America
one-third newbuilt units. Over 80% of these newbuilt units and in the Gulf of Mexico. •
are owned by the field operator (mainly MOCs and Petrobras).

24 WWW.OFFSHORE-MAG.COM | OFFSHORE   MAY 2020

2005OFF16-26_crisis.indd 24 4/28/20 11:38 AM 2004OF


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2005OFF16-26_crisis.indd1 25
2004OFF_Oceaneering 4/28/20
3/11/20 11:38 AM
1:29 PM
• CRISIS MANAGEMENT

Embattled industry goes into


crisis management mode
Offshore operators to defer more than $42 billion in EPC contracts
due to low oil prices, COVID-19 pandemic

MARK ADEOSUN, WESTWOOD GLOBAL ENERGY GROUP

THE SUDDEN DROP in the oil price together with the Corona- for $5.3 billion of offshore EPC contract value.
virus pandemic has thrown the global offshore EPC market into The outlook for oil prices looks bleak for the remainder of the
a state of flux. 2020 budget cuts so far have been around 25%, but year. Oil consumption fell by an estimated 5 and 10 MMb/d in Feb-
short-cycle US shale players have been the harder hit, announcing ruary and March, respectively, as Europe and the US joined Asia
average capex cuts of 35% and up to 75%. The offshore market in rolling out social lockdown measures to prevent the spread of
will see a significant slowdown in planned investments. Discre- COVID-19. April is expected to be the inflection point for demand
tionary E&A budgets have been slashed, rig contracts canceled, destruction with analysts estimating a drop anywhere between
and new project sanction- 15-30 MMb/d. OPEC+
ing is being reassessed. OFFSHORE EPC CONTRACT AWARD OUTLOOK finally agreed to 9.7 MMb/d
Announcements of 80 of production cuts on April
WGEG Anticipated delays
delays and deferrals are an 70 Announced delays 9 starting from May 1 and
almost daily occurrence. As Revised April 2020 outlook tapering until April 2022. A
60 Awarded contracts
of April 17, major offshore few days later, G20 mem-
projects that have been 50 bers pledged a further 3.7
deferred include Bay du MMb/d of cuts and inter-
$ Billion

40
Nord (Equinor – Canada), national oil purchases into
Scarborough (Woodside – 30 SPRs amounting to 200
Australia), Cambo (UK) and MMbbl. However, despite
20
North Field South (Qatargas this unprecedented inter-
– Qatar). These four projects 10 vention, oil markets are
alone equate to around $8.5 0
expected to remain over-
billion of EPC* contracts. 2013 2014 2015 2016 2017 2018 2019 2020 supplied for much of 2Q
But it is not just oil prices Source: Westwood Global Energy Group with global consumption
that are slowing down off- only reaching 90 MMb/d
shore field development activity. The Coronavirus pandemic in June/July, according to recent analysis released by the EIA
also poses major logistical challenges for large-scale construc- and IEA. Westwood has revised its 2020 annual average oil price
tion projects that rely on international procurement and signifi- assumption to $40/bbl, rising to $50/bbl in 2021.
cant imported manpower. This could see delays to the roughly $5 With $5 billion of offshore EPC contracts already awarded
billion of already awarded EPC contracts this year such as those year to date, Westwood still anticipates around $25 billion of
associated with Woodside’s Sangomar project off Senegal, and offshore EPC contracts to still be awarded, assuming prices
Santos’ Barossa gas project off Australia. are around $30 throughout the remainder of 2020. These proj-
All in all, Westwood now expects up to $30 billion of EPC con- ects are typically high-priority developments that already have
tracts to be awarded in 2020. This is $43 billion below the $68 substantial contracts awarded such as ExxonMobil’s Payara off
billion of possible offshore EPC contracts Westwood had iden- Guyana, Equinor’s Bacalhau off Brazil, and Shell’s Whale in the
tified for 2020 and 37% less than that awarded in 2019. From an Gulf of Mexico.
equipment perspective, possible contract awards in 2020 equate After a turbulent five years, the offshore E&P industry is once
to 110 subsea trees, six floating production systems, 1,350 km again adopting the brace position and operators and contractors
(839 mi) of line pipe, and 1,400 km (870 mi) of flexibles. Besides are treading a fine line between sustaining cashflow and ensur-
the delays announced at the time of writing, others at a high ing the health and safety of their workforce. •
risk of slipping include Western Gas’ Equus LNG off Australia
*Offshore EPC contracts include floating production systems, fixed
and high-profile African projects such as Shell’s Bonga South- platforms, subsea production systems, subsea umbilicals, risers
West and BP’s PAJ in the Gulf of Guinea and even Eni’s Mamba and flowlines and pipelines.
gas project off Mozambique. These four projects alone account

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DRILLING & COMPLETION •

ABS is working with all three


major BOP manufacturers,
several major operators and
drilling contractors in systematic
TQ for HP/HT BOP stack and
pressure-control equipment.
(Image courtesy ABS)

Third-party verification plays key role


in HP/HT technology adoption
New codes and standards should expedite development

HARISH PATEL, ABS

IN THE OFFSHORE ARENA, the journey to develop and pro- and service companies. To safely and successfully operate in HP/
duce oil and gas from high-pressure/high-temperature (HP/HT) HT environments, operators clearly cannot use equipment that
fields began more than a decade ago. At that time, project needs would quickly exceed its design capability. Operators need to rede-
were beyond the capability of the available technology. Nor had sign equipment to accommodate HP/HT conditions as well as
the applicable codes and standards been developed. The oil carry out advanced planning for modified operational procedures.
and gas industry needed new drilling, evaluation, completion Since the consequences of failure in offshore HP/HT envi-
and production equipment that could withstand these harsher ronments are potentially severe, regulators such as BSEE have
environments. added extra rigor in their permitting and approval process for
The US Department of the Interior’s Bureau of Safety and such projects, requiring additional risk studies, design verifica-
Environmental Enforcement (BSEE) defines an HP/HT environ- tion, and validation of equipment using an Independent Third
ment as any reservoir that requires completion equipment or Party (I3P) for verification and oversight.
well control equipment with an assigned pressure rating greater
than 15,000 psi and/or a temperature rating greater than 350°F. BECOMING A REALITY
These harsher and more extreme drilling environments present The oil and gas sector has waited a long time for offshore HP/
a series of challenges to offshore operators, equipment vendors HT production to become a day-to-day reality. In some cases,

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• DRILLING & COMPLETION

the meter is running on these resources; operators are keen requirement which the industry could follow. BSEE has now
to develop them while they retain the rights to do so. With the published three Notice to Lessees (NTLs 2019-G02, 2019-G03
required technologies and regulations now in place, many oper- and 2019-G04) for HP/HT-related field development require-
ators with undeveloped offshore HP/HT assets are looking for- ments for offshore operators.
ward to converting them from reservoirs into reserves. To address equipment design challenges, the industry has fol-
BSEE requires the offshore operator to nominate an I3P that lowed the Technology Qualification (TQ) process for each piece
will be responsible for evaluating documentation pertaining to of equipment, including both design verification and design val-
the new technology, and to generate a report for BSEE’s review idation as separate processes.
and approval. These BSEE requirements require the operator, In addition, TQ involves additional areas of concern regarding
original equipment manufacturer, and sub-vendors to work with material selection/qualification, and the study of potential failure
the I3P and BSEE. modes and risks with their mitigation methods. The materials
From the beginning of these developments, ABS acted as the performance criteria in HP/HT drilling environments has not
ISP on behalf of numerous offshore operators. Over last five to yet been established due to the limited availability of case histo-
six years, the classification society has been involved at various ries and the remaining uncertainties related to the composition
stages of design verification, validation for various equipment, of the fluids involved at elevated temperatures and pressures.
and studies aimed at addressing the risks of HP/HT technology As part of the TQ process, various risk and reliability studies
and operations. are required to better identify the hazards and evaluate subse-
Early in the development process, the industry identified the quent risks associated with a proposed technology during its ini-
important technical challenges it would need to address early in tial evaluation. These studies must be continuously updated to
the cycle. These chal- manage risk over the
lenges included a lack TYPICAL RISK AND RELIABILITYSTUDIES FOR HPHT EQUIPMENT/SYSTEM asset lifecycle.
of industry codes and
standards; lack of reg- RISK AND
ulation; equipment RELIABILITY
design; the need for The TQ process
newer materials includes evaluating
(both elastomer and HP/HT drilling haz-
metallic); and the ards using risk assess-
resources for manu- ments and reliability
facturing and inspec- studies. These studies
tion of this much are an essential step
larger equipment. in the TQ process to
ensure the ability of
CODES AND HAZID - Hazard Identification SIL - Safety Integrity Level the novel technology
HAZOP - Hazard and Operability RAM - Reliability Availability Analysis
STANDARDS FMEA - Failure Mode and Effects Analysis RAM - Reliability, Availability and Maintainability aspects in achiev-
Over the last decade, FMECA - Failure Mode Effects and Criticality Analysis ing their functional
the industry has requirements and
worked systemati- goals.
cally to address these challenges and the result is that operators In addition, the risk and reliability studies provide extra veri-
now have field resources contracted and projects very close to fication that the technology meets the functional requirements,
final investment decision. in order to provide an adequate level of safety. The flow chart in
To address the challenges of industry codes and standard prac- this article presents a typical process for the risk and reliability
tices, ABS worked closely with various standards organizations studies when undergoing the technology qualification of HP/HT
and has developed HP/HT-related requirements to the standards equipment and system.
of the American Petroleum Institute (API) and American Society
of Mechanical Engineers (ASME). These standards can now be MATERIALS SELECTION
used for design and manufacture of HP/HT drilling equipment. HP/HT conditions add an increased challenge to the process of
BSEE and API codes require that HP/HT equipment meet material selection for equipment due to the extreme operating
ASME design check methodology. This presents a unique chal- conditions. At the beginning of the study of HP/HT operations,
lenge for the industry, since these are new methodologies for there were many uncertainties involving the specific environmen-
design compared to traditional API methods. ABS quickly noticed tal effects on the material properties due to the lack of field data.
that application and understanding of ASME methodology var- As a result of this data scarcity, uncertainty concerning mate-
ied by manufacturer. This variability poses a unique challenge for rial suitability to operate in the HP/HT environment required
the I3P, in particular for fatigue and fracture mechanics analysis. manufacturers to make major investments, to qualify their pro-
ABS worked closely with BSEE to develop a regulatory posed materials. Various factors having a major bearing on the

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DRILLING & COMPLETION •

material selection included but were not limited to: verification and validation.
• Temperature
• Chemistry UNLOCKING THE POTENTIAL
• Manufacturing procedure The work of the past decade shows that the industry has grasped
• Material properties the challenges of HP/HT operations and has become more com-
• Exposure to environment: seawater, wellbore, drilling and fortable with the requirements from a technical and regulatory
completion fluids, general and localized corrosion perspective. Operators are now able to make final investment
• Erosion decisions on the basis that the R&D work has produced approved
• Elastomers technology.
• Design life The first phase of actual operations will be critical in provid-
• Creep at high temperatures ing real world data and experience of how the technology per-
• Material interactions. forms in this environment, and whether new items need to be
Over the last 10 years, an increasing proportion of equipment considered from a risk or system perspective.
has been designed, built, and tested under the TQ process and Once this begins to happen, the industry can move toward
been approved by both the independent third party and BSEE. standardization of the technology components and begin to
Getting equipment qualified under this extremely challenging make inroads into managing and reducing the high costs asso-
development process has been a significant achievement for the ciated with the development of first-generation equipment. •
industry, but greater challenges are still ahead.
The next phase of the HP/HT story is building the equipment THE AUTHOR
and developing the fields themselves. Looking at the bigger pic- Harish Patel is Senior Technical Advisor, Technology–Drilling
ture, the operator needs to address risk related to development and Process, ABS.
of the field. There will be numerous challenges.
The equipment qualified for operations are of new design and
as a result their reliability is still unknown and will require a great
deal of attention during manufacture, testing, and operations.

RIG DESIGN AND INTEGRATION


The demands of the HP/HT environment have increased size
and weight of equipment and as a result, well control and drill-
Are you sharing this
ing in particular pose a bigger challenge. Some of the challenges
that need to be considered in building out systems for HP/HT
copy of ?
operations include:
• Structural modification November 2019

• Higher weight of HP/HT equipment World Trends and Technology for Offshore Oil and Gas

• Handling and lifting systems


EUROPEAN
• Derrick capacity TECHNOLOGY
REPORT
• HP/HT system integration
• Blast load
• Risk and risk study requirements
• Well control
• Crew training
• Well completion
• Equipment design verification and validation for HP/HT
Get Your
• Additional codes and standards compliance. Own Free
In addition to well control, there will be additional drilling-re-
lated challenges that need to be addressed such as kick detec- Subscription at:
tion which has a major impact on safety and will require greater
attention. www.offshore-mag.com/
Operators need to perform detailed risk studies from a system subscribe
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development to identify the likely risks and provide mitigation.
At present, the regulator has not developed specific require- @Offshoremgzn @OffshoreMagazine
ments for the types of control systems used to manage HP/ www.linkedin.com/groups/4542757
HT equipment and systems. These systems will require special
attention, with all control systems subject to thorough risk study,

MAY 2020   OFFSHORE | WWW.OFFSHORE-MAG.COM29


200401OFF_ShareSub14v 1 4/1/20 2:37 PM

2005OFF27-29_abs.indd 29 4/28/20 11:38 AM


• ENGINEERING, CONSTRUCTION & INSTALLATION

The FSRU will receive LNG from ship-to-ship deliveries


from LNG carriers (LNGC). The LNGC is berthed to the
FSRU, and LNG is transferred between the LNGC and
FSRU via their mid-ship manifolds using cryogenic hoses.
(All images courtesy Invenergy)

FSRU enables cleaner energy


production for El Salvador
Energía del Pacífico project calls for region’s first regasification vessel

ALBERTO OSORIO LIEBANA, INVENERGY

EMERGING ECONOMIES continue to record sharp increases the rapidly increasing gas-to-power market in places where there
in energy demand, and the floating storage regasification unit is no access to existing gas infrastructure.
(FSRU) concept has demonstrated that it can deliver a fast and
cost-effective solution. POWERING EL SALVADOR
The first FSRU unit was installed in the Gulf of Mexico in 2005, Energía del Pacífico (EDP) is an ambitious project that is introduc-
and by mid-2016, 19 more were in operation. According to the ing a new, clean, and more efficient source of energy to El Salva-
publication, “Natural Gas and the Clean Energy Transition,” pro- dor, where most power generation today is fueled by heavy fuel oil
duced by the International Finance Corp., a sister organization (HFO). The goal of the EDP development is to expand El Salvador’s
of the World Bank, countries have turned to FSRUs primarily for energy mix, adding LNG to the current hydropower, geothermal,
three reasons: needing LNG for a secure supply of natural gas, solar, and HFO sources to provide consistent and reliable energy.
using LNG to provide back-up to hydroelectricity, or making up The project – which is being executed via a partnership headed
for declining gas reserves. by Invenergy and supported by El Salvador-based partners Grupo
By the end of 2018, there were 40 LNG-importing countries, and Calleja, VC Energy de Centroamerica and Quantum Energy –
almost all new importers are emerging markets that have developed includes an FSRU that will transport regasified LNG via subsea
FSRU-based terminals. In some cases, FSRU projects are serving pipeline in the Port of Acajutla to a newly constructed 378-MW

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ENGINEERING, CONSTRUCTION & INSTALLATION •

thermal power plant onshore. This new facility will meet 30% of El FSRU will be moored on the Pacific coast of El Salvador, orientated
Salvador’s energy demand. A 44-km (27.3-mi) transmission line and at approximately 225° to minimize waves on the starboard bow
substations also are part of this development, which constitutes and to position the mooring lines from the stern of the vessel to
the largest private investment to date in El Salvador. avoid interfering with pipelines. The vessel position was chosen to
minimize interference with other port infrastructure, port traffic
RISING TO THE CHALLENGE and anchorage areas and place it outside the nearby buoy moored
Laying the groundwork for this technically complex project did oil importation terminal exclusion zone and out of the way of the
not come without challenges. In addition to introducing the first associated marine terminal operations.
LNG-fueled power plant to El Salvador, this project includes the The FSRU is designed with 137,000 cubic meters of storage and
first FSRU for the region. Regulations needed to be formulated 280,000,000 scf/d of regasification capacity which is four times the
and approved for offshore gas storage as well as for transporta- throughput needed to meet the maximum power plant capacity
tion to shore. The scope of the transmission network expansion providing a high level of reliability and redundancy. The FSRU will
was another challenge because rights-of-way negotiations had to receive LNG from ship-to-ship (STS) deliveries from LNG carriers
be finalized before construction could begin. (LNGC) that will be supported and maneuvered alongside FSRU by
Another challenge was designing the physical components of tugboats from SAAM Towage. The LNGC is berthed to the FSRU,
the project – the supply, storage, and regasification of LNG; the positioned along the starboard side. LNG is transferred between
power plant; and a transmission network – all of which required the LNGC and FSRU via their mid-ship manifolds using cryogenic
creative technical solutions. hoses. The LNG is regasified onboard FSRU, and gas is delivered to
shore from the regas manifold on the FSRU via a riser from a port
INTRODUCING A NOVEL CONCEPT side porch, to a pipeline end termination connecting to a 1,750-m
Initial development concepts included onshore regasification and (5,741-ft) subsea pipeline to the onshore power plant.
LNG tanks, a jetty, and an offshore FSRU barge protected by a EDP has signed a long-term supply agreement with Shell to
near-shore cofferdam. Located close to shore in 17-m (56-ft) water supply LNG for the development for around 13 years.
depth and exposed to open ocean swell, these options became
very expensive and potentially rendered the project unviable. In DESIGNING THE MOORING SYSTEM
the end, the most practical and cost-effective solution was a per- An affordable mooring system that could permanently moor an
manently moored FSRU. FSRU for 20 years in 17 m (56 ft) water depth was needed to allow
The team procured the Gallina Moss LNG carrier from Shell the project to move forward. The main objective was to design a
and contracted BW LNG to carry out the FSRU conversion. The mooring system that provides uninterrupted transfer of gas from

The Energía del Pacífico


project is designed to
deliver a new, clean and
more efficient source of
energy to El Salvador.

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• ENGINEERING, CONSTRUCTION & INSTALLATION

the FSRU for both operational and extreme conditions. in STS loading conditions as well as additional scenarios to deter-
The installation site of the FSRU is south of the hurricane/trop- mine the mooring capacity in conditions in which any single com-
ical cyclone belt in an area with relatively benign environmental ponent in the station keeping/mooring system is lost.
conditions. However, the vessel would be exposed to seasonal long Further simulations were performed with the most loaded line
period swell and possible seismic activity with the potential to cre- removed and with the second most loaded line removed. The
ate tsunamis. The design environmental conditions considered results from the simulations form the basis for the line-broken
most severe scenarios in 100-year wave, wind, and current con- line tensions and FSRU offsets. For these single-component fail-
ditions and extreme 1,000-year events for tsunamis, including sea ure scenarios, the criterion for peak loads in the remaining anchor
level variations as well as current speeds. lines and 100-year extreme condition loads is defined by API RP
Nominal 100-year conditions include: 2SK – the industry standard for mooring systems. CAN Systems
• 100-year significant wave height of 3.3 m (11 ft) with peak peri- also conducted simulation and modeling to validate mooring per-
ods of 12 to 18 sec formance for tsunami conditions.
• 100-year wind speeds of 20 m/sec (1 hour mean) The validated mooring arrangement was verified and approved
• 100-year surface currents of 1 m/sec. for use on the EDP project by classification society DNV GL.
CAN Systems in Norway developed and designed the restricted
catenary mooring (RCM) system, a refined spread mooring sys- EFFECTING POSITIVE CHANGE
tem that comprises a bow mooring system, a mooring restrictor The 378-MW EDP project in El Salvador will not only introduce
arrangement and stern hold back lines. The main feature of the a new source of energy to the country, but it will also include the
RCM system is a specialized, subsurface connecting plate and development of the first offshore regasification vessel deployed
restrictor arrangement that keeps the mooring lines at the bow off the Pacific Coast of Central America – thus demonstrating the
and stern close together viability of floating LNG as
below keel level, thereby an energy source for land-
preventing the mooring based power generation in
lines from interfering with the region.
the offloading LNGC. EDP is a transforma-
The RCM system con- tional project for El Salva-
sists of the bow mooring dor and Central America
system secured by chains as a whole, introducing a
affixed to connecting new source of energy with
plates arranged from deck a system that provides the
The specialized mooring system will
level hangoff with restrictor include a subsurface connecting plate
efficiency and flexibility to
chains to hold the moor- designed to prevent the mooring lines from supplement varying pro-
ing lines together and interfering with the offloading LNGC. duction from solar and
away from STS moored hydro generation sources.
LNGCs to avoid interfer- This added capacity will not
ence during offloading. The holdback lines at the stern have a only balance energy availability but will also reduce the environ-
similar arrangement as the bow mooring lines. The flexible 14-in. mental impact of energy production. Beyond the added benefits
gas export riser is routed from a balcony at the side of the ship to to the energy mix and environment, the project is a catalyst for
the pipeline end termination (PLET) on the seabed where it tran- growth for the country. •
sitions to the pipeline that carries the gas to shore.
The seabed where the FSRU will be moored is relatively sandy THE AUTHOR
with the presence of volcanic boulders, which led to the selection Alberto Osorio is Director of Thermal Engineering at Invenergy
of the Vryhof Stevshark REX drag embedment anchor for the and Project Director of the Energía del Pacífico
mooring system. The REX anchor is designed with spread shanks (EDP) project, currently under development and
and a geometry that improves installation, penetration, stability, construction in Acajutla, El Salvador. In this role
and strength. The RCM mooring system consists of 84-mm chain he is responsible for leading and coordinating all
for the lower anchor legs and 100-mm chain in the top chains project activities including EPC contractor man-
for additional corrosion allowance in the splash zone (above the agement. He holds a BS in Civil Engineering from
restrictor chain). Mooring legs have variable lengths from 135 m the University of Granada, Spain; a BS in Civil Engi-
(443 ft) to 235 m (771 ft) to fit within the site restrictions. The Vry- neering from the National Autonomous University of Mexico; and
hof Stevshark Rex anchors vary in weight from 12.5 tons to 23 tons an MS in Engineering of Roads, Canals and Ports from the Uni-
including extra ballast weight. versity of Granada, Spain. He is a licensed professional engineer
Model testing to confirm the RCM design in 100-year wind, in Spain and Mexico.
-wave and -current design conditions was carried out by MARIN
in the Netherlands. Tests also evaluated LNGC alongside the FSRU

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BUILDING A
BETTER WORLD.

2005OFF30-40_eci.indd
2001OFF_Noia 1 33 4/28/20 11:38
12/23/19 10:23 AM
AM
• ENGINEERING, CONSTRUCTION & INSTALLATION

Siemens’ BlueVault energy storage


solutions are designed to help
ensure continuity of power and to
minimize carbon dioxide emissions,
with an end goal of a low-emissions
platform. (Courtesy Siemens)

Hybrid power plants can help decarbonize


offshore drilling rigs and vessels
Novel system expected to reduce CO2, NOx emissions on West Mira drilling rig

STIG SETTEMSDAL, LARS BARSTAD, AND WOLFGANG VOSS, SIEMENS

THE MARINE and offshore oil and gas industries are coming Siemens delivered the first modern diesel-electric propulsion
under immense pressure to reduce emissions and improve the system to a Norwegian offshore supply vessel in 1996. The com-
sustainability of their operations. Considering this, the applica- pany has since implemented similar systems on 300+ marine
tion of low voltage direct current (DC)-based diesel-electric pro- vessels worldwide. In 2018, another significant milestone was
pulsion systems has gained significant traction. achieved on the West Mira drilling rig in the North Sea. It became
Low voltage DC grids provide numerous advantages when the world’s first modern drilling rig to operate a low-emission
compared to traditional power systems based on alternating cur- power plant using lithium-ion batteries.
rent (AC) electrical distribution, including the ability to optimize
the loading on diesel gensets by changing the speed according DC POWER GRIDS
to the load, which reduces specific fuel consumption and asso- The application of DC power grids on offshore marine vessels
ciated emissions. is not new and can be traced as far back as the 1880s. However,
Additionally, by reducing loading on the gensets, maintenance most ships and rigs in operation today use AC power distribu-
intervals can be extended. These benefits are especially relevant tion. In these systems, prime movers (typically diesel engines)
for offshore rigs and platform support vessels (PSVs), which have are connected to a generator, which distributes power to various
highly variable power demands for drilling, dynamic positioning, consumers across the facility, including the propulsion system.
and station-keeping. DC power plants also enable easy incorpo- Although these systems have been used with success for
ration of energy storage technologies to create hybrid or all-elec- decades, one inherent disadvantage is that the diesel engine
tric power schemes. must be kept running at a fixed speed in order to maintain con-
stant frequency and voltage within defined static and dynamic

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ENGINEERING, CONSTRUCTION & INSTALLATION •

limits. This speed is typically less than the rated output of the electrically powered ferry boat. Named Ampere, the ferry carries
engine, which results in partial loading. When this occurs, engine passengers and cars across a 6-km (4-mi) crossing between two
temperature is not high enough to burn all the available fuel. As communities in the Fjord area of Norway. At 80 m (262 ft) long,
a result, unburnt fuel passes into the exhaust system, reducing it is driven by two 450 kilowatt (kW) electric motors powered
efficiency and increasing specific fuel-oil consumption (SFOC) by lithium-ion batteries. The batteries have a combined capac-
– both of which lead to higher emissions. ity of 1,000 kilowatt-hours (kWh). With electricity in the Fjord
Modern low-voltage DC solutions solve this problem by decou- area being generated exclusively by hydroelectric plants, Ampere
pling the power grid from frequency and allowing the diesel cuts emissions by 95% and lifecycle cost by 80% compared to a
engines to be operated at variable (i.e., more optimal) speed, which fuel-powered ferry traveling the same route, which consumes
lowers SFOC. This can yield substantial fuel savings and emis- around one million liters of diesel fuel and emits 2,680 tons of
sions reductions for PSVs, which only require full power a small CO2 and 37 tons of NOx each year.
proportion of the time they are in operation. In such cases, total Similar savings are possible in hybrid power plants by enabling
fuel reduction on the order of 10-25% can be achieved. NOx emis- diesel engines to be operated at an optimal combustion level most
sions reductions as high as 80-85% are also possible due to higher of the time, which improves fuel utilization. This is the case with
exhaust temperature and more efficient utilization of scrubbers. the Norwegian offshore construction vessel, Edda Freya. This ves-
In addition to the environmental benefits, DC power grids are sel was commissioned in 2016 and features Siemens’ BlueDrive
more flexible and unlike AC grids, do not require a frequency con- PlusC DC power grid with 23MW installed power generation and
verter for connection to onshore power sources. There are also 500kWh battery capacity, coupled with an energy storage solution
safety advantages, including rapid fault clearing, which eliminates from Corvus Energy. The hybrid power system enables lower fuel
the possibility of generator synchronization failures and drasti- consumption when compared to vessels of similar size – and in
cally improves blackout recovery time. turn, a lower emissions profile.
In the case of offshore rigs with hybrid power plants that use
LEVERAGING ENERGY STORAGE energy storage, excess power produced from diesel generators or
Another significant benefit of low voltage DC power grids is that gas turbines could potentially be stored and used to support and
they allow for easy incorporation of energy storage technologies improve operation of the primary energy source. Energy could be
to create hybrid (i.e., diesel-electric) or all-electric power schemes. used for immediate consumption to improve dynamic operation
The latter is typically not feasible for large PSVs with high power of engines with low response capability in critical situations, as
loads; however, there are many commercial transport vessels in well as for reducing rapid speed changes during normal operation.
operation today that are fully electric. The application of energy storage for drilling rigs or PSVs ulti-
In 2015, Siemens supplied the power system for the world’s first mately enables companies to fundamentally change the way they

The Norwegian offshore construction


vessel Edda Freya was commissioned
in 2016 and features Siemens’ BlueDrive
PlusC DC power grid, coupled with an
energy storage solution from Corvus
Energy. (Courtesy Siemens)

MAY 2020   OFFSHORE | WWW.OFFSHORE-MAG.COM35

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• ENGINEERING, CONSTRUCTION & INSTALLATION

operate assets. A summary of the key benefits is outlined below. first lithium-ion battery solution to an offshore drilling rig. The
Reduced fuel consumption and lower emissions. As previously West Mira is a sixth-generation, ultra-deepwater semisubmers-
stated, by integrating low voltage DC power grids with energy stor- ible that will operate in the North Sea’s Nova field, about 120
age, it is possible to optimize the loading on combustion units, km (75 mi) northwest of Bergen, Norway. It will be the world’s
such as diesel gensets, which reduces specific fuel consumption first modern drilling rig to operate a low-emissions hybrid (die-
and associated emissions. This is particularly beneficial on drilling sel-electric) power plant using Siemens’ BlueVault lithium-ion
rigs, where power plants have highly variable power demand for battery technology.
drilling, dynamic positioning, and station-keeping. Hybrid power The solution consists of four converter-battery systems (total
schemes can also be used to lower transient loads on gensets and 6MW). The battery system is connected to the main switchboard
improve dynamic response times of thrusters. using a Clean Grid Converter (CGC) and step-up transformer
Improved reliability with better redundancy schemes. Relatively to medium voltage AC connections. The batteries are charged
speaking, diesel engines are slow to handle large, abrupt load from the rig’s two diesel-electric generators and used for sup-
changes. Using batteries or supercapacitors to provide temporary plying power during peak load times. In addition, they serve as
power affords facility/vessel operators more flexibility and pro- back-up to prevent blackout situations and provide power to the
vides the opportunity for new redundancy schemes, thus ensuring thrusters in the unlikely event of loss of all running machinery.
safety, lower opex and improved uptime throughout operations The installation of the ESS on the West Mira will result in
by reducing the number of engines / gensets on the platform. an estimated 42% reduction in the runtime of on-platform die-
For example, in a power plant where there have been tradition- sel engines, reducing CO2 emissions by 15% and NOx emissions
ally three gas turbines, an oper- by 12%, which is equivalent to
ator could potentially use two annual emissions from about
gas turbines with an energy stor- 10,000 automobiles.
age solution attached to it. Addi-
tionally, batteries can be used to THE ROAD AHEAD
remove the need for load shed- The long-term success of the
ding and bridge the gap between offshore oil and gas industry is
one engine failing and another predicated on reducing costs
starting up. and minimizing environmental
Reduced footprint and impacts. Low voltage DC power
increased payload. Low volt- grids coupled with energy stor-
age DC grid diesel-electric plants Installation of a hybrid power plant aboard the deepwater age provide a means to achieve
incorporating ESS have a smaller semisubmersible West Mira is expected to enable the rig to increase that objective by providing
its energy efficiency and lower emissions. (Courtesy DNV GL)
footprint than traditional power clean, flexible, and dispatch-
schemes which use gas turbines. able power.
For example, a 6.6kV high-voltage power plant with dual fuel tur- The benefits of deploying a hybrid power plant with energy
bine-driven generators and one auxiliary diesel generator requires storage in the offshore environment could potentially be real-
approximately 120 sq m (1,292 sq ft) of space in the process area. ized on any facility. However, regional economic, environmental,
By comparison, a 690V plant with four 4MW diesel generators, and regulatory factors play an important role in cost-effective
a main switchboard, integrated variable speed drive (VSD), and deployment.
ESS requires zero square meters of space in the process area. This In Norway, for example, the government is incentivizing the
increases payload and enables operators and EPCs to rethink industry to reduce emissions. This is one of the main benefits of
topsides philosophies, opening the door to more flexible designs. developing and using energy storage solutions for offshore facil-
ities in the North Sea. Other countries, including the USA and
PAVING THE WAY FOR RENEWABLES other EU nations, do not heavily incentivize the industry to sup-
The concept of using renewable sources of energy, such as off- port emissions reductions. However, new International Maritime
shore wind farms, to provide clean power to offshore oil and gas Organization (IMO) 2020 regulations which came into effect this
assets continues to gain traction. But there are still many hur- year are making these types of novel power solutions more attrac-
dles to overcome in order to make this a reality, not the least of tive and cost-effective. •
which involves finding ways to offset the intermittence and inher-
ent unpredictability of electricity generation from wind. Energy THE AUTHORS
storage is an important part of the solution to this problem and Stig Settemsdal is CTO Offshore Solutions with Siemens Energy AS.
will play a key role in helping the offshore industry drive toward Lars Barstad is DC Power & Drives Program Lifecycle Manager,
decarbonization. also with Siemens Energy AS.
In 2018, Siemens took an important step on the way to reduc- Wolfgang Voss is DC Power & Drives Program Lifecycle Manager
ing emissions and eventually harnessing renewable sources of with Siemens Energy AG.
energy to power oil and gas operations by supplying the world’s

36 WWW.OFFSHORE-MAG.COM | OFFSHORE   MAY 2020

2005OFF30-40_eci.indd 36 4/28/20 11:38 AM


ENGINEERING, CONSTRUCTION & INSTALLATION •

BOKA Vanguard delivers second


box-shaped FPSO to Petrobras
Faster dry tow cuts long-haul transportation costs

JEREMY BECKMAN, EDITOR, EUROPE

EARLIER THIS YEAR, Boskalis’ heavy


Dry transport of the FPSO P-67.
transport vessel BOKA Vanguard ( for- (All images courtesy Boskalis)
merly the Dockwise Vanguard) broke its
own record for a long-distance dry trans-
port when it delivered the 92,000-met-
ric ton (101,412-ton) box-shaped FPSO
P-70 from China to Rio de Janeiro, Brazil.
The previous benchmark had been estab-
lished two years earlier with the transport
of the ‘sister’ vessel P-67 to the Lula Norte
field in the same region.
Offshore spoke to Boskalis’ Bart Heijer-
mans, Member of the Board of Manage-
ment and Head of the Offshore Energy
Division, and Pim Nelemans, Business
Unit Director Heavy Marine Transport
about the engineering challenges and
scheduling benefits of this method of
transportation for larger floating pro-
duction systems.

Offshore: Was the P-67 Boskalis’ first


FPSO assignment for Petrobras?

Boskalis: Transport of the P-67 was exe-


cuted in 2Q 2018, and it was the first FPSO
that Boskalis had delivered to Petrobras:
indirectly, we had been involved in other
transports and installations previously
for the company. The contract scope con-
sisted of providing the vessel in order to
load, transport and discharge the FPSO.
No major modifications had to be made
to the Vanguard in order to transport
this unit.
The main preparations for the vessel
for the voyage comprised devising the
cribbing plan and installing large guide
frames in order to load the FPSO in a con-
trolled manner. In addition to the trans-
port, Boskalis provided tug assistance
until the point of handover of the FPSO
to the installation contractor.
In recent years we have transported

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• ENGINEERING, CONSTRUCTION & INSTALLATION

various types of floaters from the Far East to the western hemisphere, ranging from Boskalis: Petrobras chose Boskalis to
a ship-shaped FPSO for BP’s Schiehallion redevelopment west of Shetland in 2016, transport these hulls based on the bene-
to the circular FPSO for Eni’s Goliat project in the Norwegian Barents Sea, and the fits a dry transport provides. The contract
Moho Nord FPU offshore Congo for Total in 2017. Whatever the design or shape, the was signed with the Chinese fabricator
process of taking it onboard BOKA Vanguard is always the same, i.e. submerging the (COOEC), however Petrobras’ preference
vessel’s deck to a sufficient water depth to accommodate the cargo, which is brought for a dry-tow really helped to secure these
in using tugs and winches. jobs.
These are sister vessels, both of a box-
Offshore: Did Petrobras select Boskalis to transport the P-70 for Atapu based shape designed by Petrobras. P-70 was a
on good experiences with the Lula Norte project? couple of hundred metric tons heavier
than P-67. But because it was in most
other aspects a replica of P-67, a lot of
experience could be incorporated from
the first job for the second FPSO trans-
port. In addition, both the loading and
discharge locations were the same and
we were able to use our experiences from
the loading/discharge operations for P-67
to optimize planning for the P-70, espe-
cially in the use of tugs and the anchor
spread to position the FPSO during load-
ing. The overall process was more effi-
cient for the second job, which was one of
the biggest cargoes we have ever loaded.
This was a first-time role of its type
for COOEC. The hulls for the two FPSOs
had been awarded and constructed and
were transported to Brazil for integration
of the topsides. But when the previous
oil crisis of 2014-16 hit Petrobras, both
hulls had to be taken back to China for
the topsides integration.

Offshore: How did Boskalis state its


case during tendering?

Boskalis: Our biggest challenge was con-


vincing both Petrobras and COOEC that
there were many benefits of a dry tow
onboard the Vanguard. For such a long
voyage, a conventional wet tow using tugs
takes much longer, and around the Cape
of Good Hope, where conditions are often
severe, the speed becomes much slower.
With Petrobras on a very tight sched-
ule for first oil at Lula Norte through the
P-67, we convinced them that the Van-
guard could carry such a big unit - weigh-
ing close to 91,000 metric tons [100,310
tons] - and that our approach could save
Submerged heavy transport vessel BOKA
them up to 50-60 days in sailing time
Vanguard starts loading of the FPSO P-70.
compared to a wet tow.
We were contracted to pick up the
platform from the shipyard in Qingdao
toward the end of 2017, although the

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ENGINEERING, CONSTRUCTION & INSTALLATION •

Offshore: Was Boskalis’ scope for the


two Petrobras jobs limited to deliv-
ery of the FPSOs?

Boskalis: For the P-67 and P-70 the com-


pany was only involved with transporta-
tion. But we are keen to offer an expanded
‘one-stop-shop’ service, whether the
FPSO is being transported via a dry or
wet tow - the latter is something we also
do for long-distance transports. Boskalis
has a wide-ranging marine installation
capability, including anchors, suction
piles and mooring lines, that we would
like to offer our customers as a way to
de-risk their projects.

Offshore: Did the route around the


The BOKA Vanguard sets sail from Qingdao, China. Cape of Good Hope to southern Bra-
zil waters present any special chal-
schedule ended up slipping to 2Q 2018. There is always an interplay between us and lenges for the two boxed-shaped
the yard in these situations, and we always make sure we have sliding windows when FPSO transports?
we can pick up and deliver the cargo. In the event, the Vanguard completed the voyage
within 43 days. Compared to a wet tow this was 40-50 days faster, and it was achieved Boskalis: The conditions around the
because the vessel’s average speed is around 11 knots, against 5 to 5.5 knots for a wet CoG can be a challenge, but this also
tow of a box-shaped FPSO. demonstrates the advantages of a dry tow
versus a wet tow. Using a vessel like BOKA
Offshore: Did BOKA Vanguard undertake any other transport jobs between Vanguard makes the transport less sen-
the two FPSOs for Petrobras, and did it have to undergo a major structural sitive to bad weather, because the vessel
survey following completion of each assignment? is faster and as such can change course
more quickly. Another advantage is that
Boskalis: Yes, the vessel was involved in multiple voyages during the intervening the vessel can sail closer to shore where
period including transport of the topside platform structures for the Johan Sverdrup there is generally less severe weather than
project from South Korea to Norway and the dry-docking of the Carnival Vista cruise farther out at sea.
vessel in the Bahamas. No major structural survey was needed in either case. With all these deepwater project deliv-
eries, predictability is extremely import-
Offshore: In terms of preparations, what were the main considerations for ant, but it can be planned. For the dry tow
the two Petrobras deliveries? of the P-70, the scheduled delivery date
was January 23, and the Vanguard did
Boskalis: The dimensions (length and width) of the two boxed-shape FPSOs includ- indeed arrive on time. With a wet tow,
ing the riser hang of structures were the main challenge. Dealing with these huge sizes the unpredictability of a long voyage is
and weights of cargo is always stretching the limits of vessel strength, seafastenings much higher, making it much harder for
design, cribbing, and so on. There was a bit of overhang on the bow and stern of the the client to plan activities subsequent
Vanguard, and both cargoes just fitted in between the vessel’s accommodation block to the vessel’s arrival.
and the casings. This arrangement introduces stresses on a vessel 275 m [902 ft] long
while sailing through high waves, so in some places we had below-deck reinforcements. Offshore: Has Boskalis made any
Otherwise, it was mainly a case of managing the ballast carefully. A tailor-made crib- changes to improve the operation
bing plan was been designed to make sure the loads from the FPSO were spread over and fuel economy of its transport
the whole of the vessel and introduced nicely into the vessels’ strong points. vessels, or to monitoring motions
One of the reasons Petrobras has been moving slowly away from VLCC-FPSO con- during transit?
versions is that if you look at the tanker’s bow, it’s not optimum because you can’t
fit enough processing equipment on it. With a box-shaped FPSO, you can put more Boskalis: Clients always want to com-
modules onto it and therefore more weight. We also have experience of transport- pare a wet tow versus a dry tow, in terms
ing box-shaped floating storage and regasification units from China for Excelerate of wave impact and slamming effects. We
Energy to Argentina. have applied different coatings to reduce

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• ENGINEERING, CONSTRUCTION & INSTALLATION

the drag resistance of the hull which in


turn leads to lower fuel consumption.

Offshore: Finally, does Boskalis see


any benefits of earlier engagement
with companies during the FPSO
project planning phase?

Boskalis: We are having some discus-


sions with operators. If the fabricator
selects a dry transport very early on, the
project can be safer because the forces
imposed on the FPSO during a dry tow
are less than for a wet tow. And there are
savings that can be made if you design the
platform for a dry transport. For instance, Arrival of the BOKA Vanguard at the end destination Rio de Janeiro, Brazil.
you can continue to commission the
FPSO both during the 40-50-day voyage No commissioning was undertaken during the transports of either the P-67 or the
and subsequently on arrival through first P-70, although riders were onboard both FPSO units in order to execute the preser-
production. This is what we did on Moho vation scope, ensuring that the systems would start-up on arrival. •
Nord for Total, when more than 200 riders
were onboard the Vanguard still working
to complete the platform.

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2005OFF30-40_eci.indd 40 4/28/20 11:38 AM


200401Petro_OFFWeb12h 1 4/1/20 10:59 AM
PRODUCTION OPERATIONS •

In oil and gas, degradation is often dominated by metal loss


as a result of corrosion. (Images courtesy Oceaneering)

Quantitative engineering analysis


ensures assets remain safe, sustainable
Fitness for service enables informed integrity management decisions

PIETER VAN DER VYVER, OCEANEERING

AS THE WORLD CONTINUES to demand energy sources, on ageing fields is to assess the condition of existing infra-
there is mounting pressure on hydrocarbon producers to structure and its ability to handle current operational loads.
find new reserves and extract more from existing assets. If a condition assessment indicates concerns, then further
In recent years, the industry has made noticeable advance- analysis is required to determine the appropriate remedial
ments in recovery techniques, using efficient technology to action to ensure continued, safe operations.
extend the life of mature fields.
As these facilities are extended beyond their original design FITNESS FOR SERVICE
life and the burden for integrity verification and assurance Fitness for service (FFS) provides a quantitative engineering
steadily increases, it is essential to demonstrate continued evaluation to demonstrate the integrity of a component to
safety and integrity of ageing assets. continue to operate under a specific set of conditions, poten-
Any infrastructure which has been in service for an tially in the presence of a defect or degradation mechanism.
extended period, whether a pressure vessel, pipeline or It translates inspection results into quantifiable operational
machine component, has the potential to degrade until it and safety risks, enabling informed integrity management
no longer meets the original design requirements. There- decisions.
fore, the first step in reviewing redevelopment programs FFS provides a basis for engineers to distinguish between

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• PRODUCTION OPERATIONS

acceptable and unacceptable defects and conditions, with pressure retention could leave operators exposed to a sub-
principles based on internationally recognized procedures. stantial risk. Performing at least basic FFS once the design
Although many industry standards address some form of fit- requirements are no longer satisfied can reduce the risk
ness for service assessment, the American Petroleum Insti- and provide valuable insight into operating boundaries and
tute (API) compiled the best practices into a single, modular future degradation, as well as highlight future requirements
assessment standard (API 579-1), which has become the for advanced FFS and potential repair.
authoritative publication on FFS.
DECODING DEGRADATION
CLEAR UNDERSTANDING OF RISK The first step of assessing any defect is identification of the
The benefits of carrying out FFS assessments are clear: damage type. The assessment procedures are damage specific,
reduced downtime, improved safety, proactive maintenance, with the API 579-1 standard providing assessment methods
all the elements necessary for keeping continued opera- for 12 different types of damage. Understanding the damage
tions as safe, compliant, and efficient as possible. However, is also important for predicting the progression and deter-
the question often arises as to when FFS should and must mining the remaining safe, operating life.
be applied. For each damage type there is a subset of assessment
Identifying the point of deviation from design intent is methods, each with specific applicability and limitation
often more complex than expected due to the absence of criteria that needs considering. There are also different
detailed design information, changes in operating environ- levels of assessment, with progressively increased accuracy
ments, and multiple or complex loading scenarios. There- and reduced conservatism, accompanied by an increase in
fore, an FFS assessment should be considered as soon as any required accuracy of input information:
reported defects exceed the design code limits. For exam- • Level 1 - very basic and aimed at quick screening of defects
ple, defect size exceeding the limit stipulated in the original in simple components, normally considering pressure
fabrication quality control standard, metal loss exceeding retention only
the design corrosion allowance, material property degrada- • Level 2 - intermediate, for more complex components with
tion to below the material specification limits, or exposed additional loads, increased accuracy enables a reduction
to pressures and temperatures outside of original operat- in design safety margins
ing boundaries. • Level 3 - advanced assessment of complex components
In oil and gas, degradation is often dominated by metal loss or severe degradation using detailed mathematical mod-
as a result of corrosion. Operators tend to use the minimum eling to determine structural stability.
allowable wall thickness (MAWT) as a guideline to initiate
FFS. For piping components there is also a significant reli- COMPONENT CLASSIFICATION
ance on the API 574 guidelines for minimum structural wall API 579-1 uses an alpha-numeric classification system based
thickness; although these do not consider material grade, on component complexity and loading conditions to deter-
span length, operating medium or support arrangements. mine the appropriate minimum level of assessment:
For example, a 6-in. schedule 40 pipe system has a nom- • Type A - is the most basic component, with a simple
inal thickness of 7.11 mm, inclusive of a potential 12.5% geometry and equation relating thickness to pressure, and
thickness under tolerance. If this is specified to have a 1.5 simple loading conditions dominated by pressure. Type A
mm corrosion allowance, it results in a minimum design components are perfectly suited for Level 1 assessment
wall thickness of 4.72 mm. The API 574 Default Minimum • Type B class 1 - have similar basic geometries and thick-
Structural Thickness for a 6-in. carbon and low-alloy steel ness equations to Type A components but requires con-
pipe is 2.8 mm. If designed for internal pressure of up to 50 sideration of additional loading conditions due physical
bar (725 psi), the MAWT for pressure retention could be 1.21 size and/or exposure temperature. Type B class 1 com-
mm (depending on material grade). ponents requires level 2 assessment as a minimum
If MAWT is used to initiate FFS assessment, there would • Type B class 2 - are more complex components with
be no possibility of a successful outcome for this hypothet- thickness interdependencies requiring procedural design
ical scenario, the remaining wall thickness would not sat- evaluation rather than simple thickness. Type B class 2
isfy the API 579 Limiting Thickness criteria. Similarly, if components requires Level 2 assessment as a minimum
the API 574 structural thickness is used for initiating FFS • Type C - have the most complex geometries and load dis-
assessment and the pipe system is operating at temperatures tribution normally causing significant local structural or
above 149°C (300°F), it could experience local thermal pipes stress discontinuity requiring advanced mathematical
stress levels requiring levels well in excess of the structural analysis by means of the Level 3 assessment.
thickness. For pressure vessels it is even more complex due
to local changes in geometry, localized reinforcement zones, ASSESSMENT IN ACTION
major structural discontinuities, and loading complexities. During a routine inspection localized corrosion under insula-
Simply considering components based on thickness for tion (CUI) was detected above a horizontal stiffener ring in a

42 WWW.OFFSHORE-MAG.COM | OFFSHORE   MAY 2020

2005OFF41-50_prodOps.indd 42 4/28/20 11:38 AM PENcus


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2005OFF41-50_prodOps.indd
PENcus_petro_160414 1 43 4/28/20 10:29
4/14/16 11:38 AM
AM
• PRODUCTION OPERATIONS

Fitness for service translates inspection


results into quantifiable operational and
safety risks, enabling informed integrity
management decisions.

large vertical vessel. Local metal loss spanned approximately The company quickly provided a preliminary (Level 2)
200 mm upwards from the stiffener ring covering locally the assessment based on the initial information available, while
entire circumference of the shell. Accurate thickness mea- the operator proceeded with short-term shutdown for surface
surements were not immediately possible due to surface preparation and detailed inspection. Although not suitable
condition, but estimates suggested only 7 mm remaining of to certify the integrity, the indicative assessment provided
the original 16 mm wall in the worst affected area. a preliminary indication of the potential failure risk and
Oceaneering was contacted for advice on how to accurately the likelihood of a successful Level 3 assessment outcome,
assess the safety and ongoing operability of the equipment. thereby enabling the operator to focus immediate efforts on
The production facility had capacity for a short-term, partial recommissioning or repair. It also initiated geometric mod-
shutdown of five days for surface preparation and inspection eling for FEA to expedite the assessment process.
of the damaged vessel. Beyond this, if a longer repair time The original vessel design included consideration of both
was necessary, the facility would require a complete shut- internal pressure and vacuum conditions, with normal opera-
down, resulting in substantial financial loss. Primary con- tion under partial vacuum. The company’s indicative assess-
cern centered around the immediate safety of personnel and ment showed that the original design was governed by the
equipment, followed by mitigation of any required downtime. vacuum loads, not internal pressure. It anticipated that the
FFS would provide valuable information on whether con- vessel would withstand internal pressures well in excess of
tinued operation was safe and achievable, while a suitable the maximum design pressure, as well as full vacuum con-
repair strategy was investigated, designed, and implemented. ditions, at the initially reported thickness levels. However,
The vessel dimensions did not satisfy the requirements subsequent detailed inspection revealed the metal loss was
for Type A component classification, as additional loading substantially greater than originally stipulated, with remain-
©2020_WPC_RA1

conditions had to be considered. The location of the defect, ing thickness of only 2.5 mm in the worst affected area. This
immediately adjacent to a stiffener also did not satisfy Level increased the urgency for a Level 3 assessment, and reduced
2 applicability requirements, indicating finite element stress confidence in a successful outcome.
analysis would be required to evaluate the local stress and To expedite results, a phased approach to assessment
strain distribution. Therefore, advanced FFS (Level 3) was load cases was followed. Firstly, combined vacuum, weight,
the only suitable assessment. and thermal loads were assessed to demonstrate safety for

44 WWW.OFFSHORE-MAG.COM | OFFSHORE   MAY 2020

2003OF
2005OFF41-50_prodOps.indd 44 4/28/20 11:38 AM
PRODUCTION OPERATIONS •

continued normal operation. The limit load and buckling PROVEN BENEFITS OF APPLYING FFS
assessment indicated overall structural stability and adequate Due to the criticality and urgency associated with FFS, reg-
resistance to buckling under full vacuum, with no change in ular progress feedback and preliminary results are critical to
design buckling behavior in the presence of the defect, and enable accurate decision making without the need to wait for
no excessive plastic strains. The vessel was deemed fit for a final formal report. For the above example, the company
continued service for normal operation (partial vacuum) and provided the customer with indicative results and the abil-
preparations for recommissioning could commence, with ity to make an informed decision within three days, ensur-
appropriate protections to avoid upset conditions. ing equipment could be safely recommissioned, in tandem
Secondly, assessment of internal pressure, weight, and with seeking repair solutions.
thermal loads during upset conditions were assessed. The In most cases, when FFS is conducted by competent
assessment indicated potential structural instability and industry advocates, the cost of the assessment is greatly
excessive plastic strains at pressures exceeding 70% of design outweighed by the benefits of gaining a more detailed under-
maximum pressure, requiring derating of the vessel for poten- standing of the damage, potential risk, safe operating bound-
tial upset conditions. Finally, assessment of wind loads indi- aries and likelihood of repair. FFS provides valuable insight
cated that vessel integrity would not be compromised at into the risks associated with component and defect combi-
design wind speeds. nations and it supports effective future integrity management.
Oceaneering concluded that due to the low minimum Including FFS technology and assessment capabilities as
remaining thickness and the required derating for internal part of asset management strategy can create substantial
pressure, the vessel would not be able to sustain any significant operational efficiencies, reduce the likelihood of unplanned
further metal loss. It was deemed fit for short-term continued and costly repairs. Ensuring that operators are fully aware
service, provided it was derated to 70% of its original design of what FFS is and why it exists as part of a maintenance
maximum pressure, that further degradation was inhibited program budget can prevent extended shutdowns, enhance
by temporary corrosion protection, and a suitable repair is recovery, and keep assets safe for longer. •
designed and implemented in a reasonable timeframe.

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MAY 2020   OFFSHORE | WWW.OFFSHORE-MAG.COM45

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2005OFF41-50_prodOps.indd 45 4/28/20 11:38 AM
• PRODUCTION OPERATIONS

ABB provided integrated safety


and automation, electrical and
telecommunication systems to the
Aasta Hansteen platform offshore
Norway. (Photo credit: Roar Lindefjeld
and Bo B. Randulff / courtesy Equinor)

Digital technologies leading industry


toward autonomous operations
Drivers include cost reduction, safety, sustainability

MARTIN GRADY, ABB ENERGY INDUSTRIES

AUTONOMOUS OPERATIONS can help make systems safer, ensure their facilities are safer and more efficient.
more capable and reliable, as well as more cost-effective. Remov- The strongest driver, that can be seen from several direc-
ing people from the process reduces the scope for errors and tions in the industry, is cost reduction. Since the oil price plum-
improves safety. The journey toward autonomous operations meted in 2014, reducing the capital and operating costs has
is happening in the energy sector, predominantly now where been a key priority for energy companies. There has always
digital technologies are being used to sense, measure, and con- been a focus on safety and the prospect of removing people
trol connected assets. from the hazards of offshore operations has been a tantaliz-
ing prospect for the oil and gas market. Then of course we are
DRIVERS FOR AUTONOMOUS OPERATIONS increasingly starting to evaluate how we can make operations
Drivers for autonomous operations are multi-faceted and can more sustainable by reducing carbon intensity and improving
change from operator to operator depending on the exact asset efficiency. The desire to look at whether there are alternatives
or process to be automated. to the way things are done currently, with a more sustainable
There are several trends that are driving exploration and outcome. It is a challenge that the energy industry is actively
production within the energy sector, with the most notable addressing and will continue to address.
being the rise of digitalization and the need for companies to However, it is not a journey the industry can jump into; it

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PRODUCTION OPERATIONS •

is a steady progression rather than a revolution. Commonly is vitally important and a necessary part of operators’ journey
it is seen as a five-step process starting with isolated opera- toward autonomy.
tions that includes connectivity to shore automation and some Traditional maintenance routines are based on service time,
on-board automation, moving through connected operations not actual requirements, despite the fact 70 to 90% of fail-
where on-platform sensors and servers are added, then inte- ures are unrelated to equipment age. The problem with such
grated operations, remote operations, and finally achieving approaches is that considerable effort is devoted to devices that
autonomous operations. are working perfectly well. It also does not address the reality
An operator must ensure proper measures and competence where 20% of the equipment tends to cause 80% of the issues.
are in place before moving from one level of autonomy to the Furthermore, up to 40% of production losses can be attributed
next. In a highly regulated industry, input and collective deci- to preventable operator errors where, in a typical facility, this
sion making from technology providers like ABB, operators, could account for 1 to 2% of facility’s total production capac-
and regulators is necessary to help the energy sector progress ity. The result of excessive maintenance can be that facilities
through the steps. become less reliable due to increased human intervention.
Companies that use predictive maintenance, however, are
REDUCING COSTS alerted to issues that need addressing based on actual need.
A milestone on the journey toward autonomous operations Failure modes are remotely monitored using sensors and ded-
came last year at the Aasta Hansteen platform. Located in icated analyses are performed to assess the equipment itself
1,300 m (4,265 ft) of water in the Norwegian Sea and 300 km and/or its environment for clues to drive maintenance pro-
(186 mi) from land, automation was used to improve start up grams. When data is collected from a large amount of identi-
time and reduce capex costs. cal equipment operating under similar conditions, it becomes
Digital solutions driven by the need to reduce costly sched- possible to build a precise model of that device’s degradation
ule delays, served as the basis Aasta Hansteen’s fully automated process. By reducing downtime for maintenance operations
first gas start-up process. To achieve this, a sequence of more through a predictive approach, companies can optimize oper-
than 1,000 manual interventions needed to be reduced to as ations and avoid losses.
few as possible. The outcome is a series of buttons that are as In practice, ABB engineers have been helping Australian nat-
simple as starting a car. ural gas company QCG, now owned by Shell, whose upstream
The teams went through the start-up steps, identified and facilities stretch across the Surat basin, where coal-seam gas is
defined obstacles that needed to be improved, then used the gathered and transported along a 540-km (336-mi) underground
ABB Ability System 800xA simulator to do a virtual start-up of pipeline, to an LNG plant on Curtis Island near Gladstone.
the plant. It was at this stage that a lot of improvements were All process facilities including control, safety, telecom-
made for starting up and operating the plant. Through auto- munications, CCTV, electrical and maintenance systems are
mating much of the process the company managed to reduce a controlled and monitored via the ABB Ability System 800xA
complex set of manual interventions to just 20. It is estimated distributed control system allowing QCG total visibility of all
that this process saved about 40 days in the commissioning assets and production. Live data gathered from its onshore
phase of the project. unmanned operations, incorporating 24 field compression
stations, six central processing plants, two water treatment
SAFETY FIRST WITH PREDICTIVE MAINTENANCE plants, and two-training LNG export facilities are collated and
One of the most significant trends is the drive toward unmanned reviewed at a central Collaborative Operations Centre, where
and autonomous operations of offshore platforms. This increase advanced analytics on the health and performance of equip-
in the ability of platforms to run themselves, and to move the ment, systems, and devices using the data can be assessed.
engineers who monitor them to onshore control rooms has
resulted from cost reduction pressures, safety, and increas- TAKING THE SMART APPROACH
ing environmental concerns. Supplying an offshore crew and For autonomous operations to be successful, open access
flying them back and forth by helicopter is an expensive and and the ability to process and analyze huge volumes of data
inherently dangerous business. Ever more capable automation remotely in real time is critical. The company’s advances in
systems hold out the prospect of running a production facility this area continued this year in partnership with Norwegian
either with no, or very low, staffing levels – like an old-fash- oil and gas producer OKEA. They are using digitalization and
ioned lighthouse. automation to achieve substantial productivity gains through
One of the primary reasons for a physical presence in off- agile and dynamic business models.
shore and remote facilities is maintenance intervention. For Connectivity and the right infrastructure need to be in place
offshore operators, reducing persons on-board by one can jus- as companies work toward increasingly autonomous opera-
tify an investment of about $1 million.¹ Reducing the number tions. In the case of the Draugen platform, high-quality data is
of human operators also enhances plant safety by lowering the streamed to shore, creating a digital twin in real time. Unlike
risk of on-site accidents, whatever the cause. conventional digital twins of such systems, the data stream
Therefore, refining and reducing maintenance operations is transmitted right from the heart of the platform’s control

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• PRODUCTION OPERATIONS

platform, and to do it in a way that needs


less maintenance. Putting all of this on
the seabed, by definition, means it must
be autonomous.
In late 2019, the company reached
a key milestone in proving its subsea
power technology. By powering pumps
and compressors on the seabed, closer
to the reservoir, ABB’s subsea power dis-
tribution and conversion technology can
ABB and OKEA are using digitalization and automation to achieve substantial productivity reduce power consumption. There is
gains through agile and dynamic business models. (Courtesy ABB) potential for substantial energy savings,
with reduced carbon emissions using
system, without any sort of filtering or intermediate storage in databases. This power-from-shore. The company’s sub-
ensures that the context is retained, allowing the users to recognize the data. The sea power technology can connect to
new streaming solution is called “Software-as-a-service” (SaaS), a widespread licens- any power source, enabling future inte-
ing and delivery model. grations with renewable energy, such as
wind and hydro power. Moving the entire
oil and gas production facility to the sea-
bed is no longer a dream. Remotely oper-
ated, increasingly autonomous, subsea
facilities powered by lower carbon energy
are more likely to become a reality as we
transition toward a new energy future.

THE PATH AHEAD


Part of the story with autonomous activi-
ties is that with a very simple operation it
is quite easy to make it autonomous. The
challenge is to get that same degree of
autonomy, on the complex, high hazard
remote facilities in the offshore industry.
To a large extent the technology is
there, but the industry is only deploy-
ing a fraction of the technology that it
OKEA is looking to extend operations from the Draugen field until 2040. (Courtesy ABB) could. There are several barriers, per-
ceived and real, that reflect operators’
MAKING OPERATIONS MORE SUSTAINABLE appetite to embark on the five-step cycle
Although not commonly spoken about in the road to autonomous operations, the fully. Not least is convincing themselves,
role of electrification and the advent of subsea operations is a key step on the way. that their systems are robust enough to
Power is a big part of the subsea story. There have recently been significant devel- get to the final stage.
opments in subsea technology that support the drive for autonomous operations It is a simple fact that if you do not
which has often been called a ‘race to the bottom.’ set out to run something autonomously
Understandably questions are growing about the level of CO2 emissions from oil then it probably will not materialize.
and gas upstream operations. Generating power with a gas turbine, or diesel gener- There must be a clear intent to move to
ator on the platform is less efficient than power generated onshore which could be autonomous operations from the outset.
from the renewable source. This is evidenced by a host of normally
The company is delivering power-from-shore to the Johan Sverdrup field more unmanned facilities in onshore opera-
than 200 km (124 mi) from the onshore grid on the Norwegian west coast. The four tions and in the more benign environ-
platforms that make up the first phase of the development are entirely powered from ment of shallow water.
shore by the HVDC link supplied by ABB. In addition to the environmental benefits Inevitably the decision-making pro-
of powering the cluster of platforms from shore, the cable solution is safer and more cesses involve balancing the cost and
energy-efficient than generating the power offshore using fossil fuels. benefits against the drivers and the pres-
With a lot of scenarios, the developments in autonomous operation and advances sures that the operator faces at any time.
in subsea technology go hand in hand. The effect is to remove equipment from the It also depends on the circumstances in

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PRODUCTION OPERATIONS •

ABB supplied the HVDC link that


powers the Johan Sverdrup field
from shore. (Photo credit Ole Jørgen
Bratland / courtesy Equinor)

terms of the expected life of the asset and the reserves. operation? How can we reduce manning levels? What is it that
There are layers of autonomy and benefits in the early stages we need the operators to do and that process of analysis? This
and you need to go through these early stages to get more will guide you through the five levels and show you how far
advanced. But that is where everyone must start. You are you need to go at each facility.
embarking on a journey that asks, how can we improve this To date plant operation technology has reached a level of

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MAY 2020   OFFSHORE | WWW.OFFSHORE-MAG.COM49


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• PRODUCTION OPERATIONS

Expand Your autonomy somewhere between levels


2 and 3. Other technologies will soon
follow suit. Robotics, for example, is

Knowledge
in Other Industry Areas
also taking its first steps in the indus-
try. Advanced robotics exist that are
made specifically for the inspection of
equipment. These robots can replace the
manual inspection of facilities, including
inside tanks and pipes, as well as other
Our nontechnical series is tailored for energy parts of the platform.
industry professionals, especially those who lack ABB works with its customers to pro-
technical training in an area, providing a basic vide digital solutions to assist them on
understanding of the industry in a simple, easy-to- the journey toward autonomous oper-
understand language. ations. From automated processes for
plant start-up, through to simulators,
Whether you need quick information for a new remote operations, predictive mainte-
assignment or just want to expand your knowledge nance and robotic inspection, the com-
in other areas of the industry, we have your pany can run data for analytics and
nontechnical needs covered. Best of all, our books enable autonomous engineering, oper-
and videos ft easily into your budget! ation and control for local optimizations
and/or fleet management.
Many
M
Ma
any
y ttop
topics
opic
op
opic
icss to c
choose
hoos
hoosse fr
from,
from
m, in
including:
incl
clud
cl udin
in
ng:
• Basic petroleum • Petrochemicals REFERENCE
• Drilling • Petroleum production 1. ABB White Paper: Next level oil, gas
• Financial management ! and chemicals. Harnessing the power
• Geology & exploration • Pipelines of digitalization to thrive in the ‘new
• Natural gas • Well logging normal’ of low oil prices https://new.
abb.com/images/librariesprovider94/
whitepaper/digital-oil-gas-and-chemi-
cals.png?sfvrsn=93c3bd12_0

THE AUTHOR
Martin Grady is Vice
President and Global
Industry Manager, Oil
and Gas for ABB Energy
Industries. He joined ICI
plc in 1984 and held sev-
eral engineering, production and senior
management roles. He moved to ABB in
2001 as part of the acquisition of ICI’s
engineering subsidiary, Eutech. Since
then, he has held various senior manage-
ment roles, including general manager of
ABB’s Oil, Gas and Petrochemical busi-
ness in the UK from 2011, which included

Order Today! responsibility for the Caspian region and


major projects in Australia. From 2016
until his current appointment, he was
Visit our website for complete listings! a regional manager for ABB’s Oil, Gas
and Chemicals business across nine
www.PennWellBooks.com countries. Martin holds a BSc degree in
1-800-752-9764 (toll free) mechanical engineering from the Uni-
versity of Nottingham, UK. He is based
in Billingham, UK. •

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May 2020

World Trends and Technology for Offshore Oil and Gas

FRANCE
SUPPLEMENT

Courtesy TOTAL

2005OFF51-62_FranceSup.indd 51 4/28/20 11:38 AM


• FRANCE

Eiffage Métal expanding offshore wind


construction capability
WIND FARM INVESTMENTS in Europe
remain heavily focused on the North Sea,
but more projects are starting to emerge
off France’s shorelines. Engineering and
construction group Eiffage Métal is one
of the more active players in both sectors.
The company’s Belgian subsidiary
Smulders has an EPCI contract, under
a consortium with DEME, to supply 55
jackets for EDPR/ENGIE’s Moray East
wind farm off northeast Scotland. All
are three-legged structures, 85 m (279 ft)
tall, and each weighing 1,000 metric tons
(1,102 tons). Most of Eiffage Métal’s fac-
tories across Europe have been involved
in the production process, including
workshops and yards at Balen, Hobo-
ken and Eilhems in Belgium; Lauterborg ABOVE: The Wallsend yard is completing assembly of the Moray East wind farm jackets.
in France; and Zary in Poland. Fabrica- BELOW: The yard in Senegal is supporting construction of the Greater Tortue Ahmeyim
LNG jetty. (Images courtesy Eiffage Métal)
tion of the consignment has entered the
final phase, with the Wallsend yard on
the River Tyne in northeast England han-
dling assembly.
According to Arnaud de Villepin,
Industrial Division Director at Eiffage
Métal, the main challenges have been
the scale of the program, due to the large
quantity of jackets involved; managing
the logistics; the timeframe for delivery;
and the industrial approach. Serial pro-
duction of the jackets is completely differ-
ent from a conventional offshore platform
construction project.
“Some specialist oil and gas fabricators
are still entering this market, while others
have tried but are now exiting because
they have not succeeded. Although still
relatively new, offshore wind is a more
fiercely contested market than oil and compete, you need to have a big yard, a large installation capacity, and a well-devel-
gas because the price of the energy, which oped supply chain.”
has to be competitive. The capex is hav- Eiffage Métal is also collaborating with DEME on France’s first offshore wind farm,
ing to be constantly reduced, because a 480-MW complex located between 12 and 20 km (7.5 and 12 mi) from the port of St.
the revenue from wind farms compared Nazaire on the Guérande peninsula on the west coast. The scope of the EPCI contract,
with oil and gas - at least until the latest awarded last year, covers the design, fabrication, transportation, and installation of 80
oil price crash - is lower, and government monopiles and transition piece foundations. Construction of the transition pieces is
subsidies for these projects are also going taking place at Smulders’ yard in Antwerp and of the monopiles at SIF in Roermond,
down. So, this is not an open market: to the Netherlands. The completed structures will be transported to La Rochelle, south

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FRANCE •

of St. Nazaire, then installed by DEME development of interest was the proposed Phase 2 of BP/Kosmos Energy’s Greater
between spring 2021 and summer 2022. Tortue Ahmeyim project off Mauritania and Senegal. This could involve an extension
“The variable seabed soil conditions to the 1.2-km (0.75-mi) long Phase 1 LNG terminal breakwater jetty that Eiffage GC
at the offshore location oblige us to Marine is currently working on, possibly also a living quarter platform. For Phase 1,
use different installation methods for the company is using a yard in Senegal and the local supply chain to build the jetty’s
the monopiles,” de Villepin explained, 25 supporting concrete caissons, each weighing 16,000 metric tons (17,637 tons). The
with a specially-fabricated subsea waves yard, part of a major development at the Port of Dakar, could also be used to bid for
protection device deployed from DEME future local offshore projects. •
Offshore’s installation vessel Innovation.
“Some of the monopiles can be driven
conventionally, while others have to
be drilled, or in some cases drilled and
Eiffage Métal
driven. The dimensions of the monopiles
will be strong enough for each case, this
having been taken into account in the Our name represents more
engineering phase.” than a hundred years of
A floating offshore wind farm market
is also starting to emerge in Europe, led experience acknowledged
by Equinor’s Hywind projects offshore worldwide in the field of
Scotland and in the Norwegian North steel construction and
Sea. Eiffage Métal is the EPCI contrac-
tor for a pilot floating wind farm project civil engineering
in the French Mediterranean Sea, which structures.
involves assembly of a floater designed
by Principle Power Inc.
Assuming contracts are awarded this
year as originally planned, Eiffage Métal
would fabricate three floater structures Oil & Gas and Renewable
between 2021 and 2022. Each would
weigh 2,000 metric tons (2,204 tons) and
would operate in water depths of up to For over fifty years, our
70 m (229 ft), over an area of 3.5 sq km plateforms, modules and
(1.35 sq mi). According to de Villepin, living quarters enable
PPI’s concept is based on dynamic bal-
lasting. Eiffage Métal would manufacture petroleum companies to ex-
parts of the columns and bracings, then plore and exploit petroleum
assemble these at its yard in Fos-sur-Mer. fields.
In addition, the company aims to submit
bids for other planned conventional and
floating wind farms off Le Tréport and More recently, Eiffage has
Dunkerque in northern France; another become the europeen lea-
close to the island of Noirmoutier off the
west coast; and three offshore floating der of the foundations and
wind farms, one located off the coast of the offshore substations for
Britanny and the other two in the Med- offshore wind farms.
iterranean Sea.
Before the sudden oil price collapse,
the company had been monitoring poten- Quality - Satefy - Environment
tial oil and gas projects offshore Nigeria
These are the essential priorities of our company, based on the expertise,
suited to its local living-quarter fabrica- competence, adaptability and dedication of our teams.
tion capability. These included Shell’s
shallow-water Block H development
and the quarters module for SNEPCO’s www.eiffagemetal.com
deepwater Bonga SW project. Another

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• FRANCE

Transfer of LNG ship to ship.


(Image courtesy Excelerate Energy)

GTT membranes safeguard LNG


on Prelude, Coral South
MOST OF THE NEWBUILD FSRU and FLNG vessels either their customer’s requirements which are changing and evolv-
in operation or under construction worldwide employ GTT’s ing quickly. More resistant insulation systems are necessary
membrane containment systems for their LNG/LPG cargoes. to enable operations offshore (FLNG, FSRU, etc.), in order to
GTT (Gaztransport & Technigaz) was formed in 1994 follow- obtain more operational flexibility or even to transport gases
ing the merger between two French companies Gaztransport which are heavier than LNG.
and Technigaz, both focused on the LNG shipping business. In recent years the company introduced its Mark III Flex+
The company originally developed its membrane technologies system, engineered to provide improved thermal performance.
to reduce the cost of LNG maritime transport by loading it in The design evolution involved the increase of the total thick-
bulk in the LNG carrier’s holds. The holds are equipped with ness of the insulation by 20% compared to the established Mark
cryogenic coatings, or membranes, which contain the LNG at III Flex system.
a temperature of -163°C (-261°F) and are sealed with an imper- Another on-going development, which received initial
meable layer between the liquid cargo and the vessel’s hull. The approval from Class in late 2018, is GTT NEXT1, which is
design also limits cargo loss through evaporation, or boil-off. designed to achieve a thermal performance equivalent to Mark
GTT’s sustained research and development efforts have led to III Flex while using proven materials and components of NO96
it designing new solutions for the LNG offshore industry, espe- system (the other GTT’s technology).
cially for LNG floating storage and regasification units (FSRU) According to the company, over 30 FSRU vessels currently
and floating liquefied natural gas vessels (FLNG). operate globally, with countries new to LNG imports generally
It is important for GTT to develop its technology to meet favoring the concept as more economic than construction of

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FRANCE •

full-scale onshore storage. The company claims that all units continued “GTT’s technology was not viewed as optimal for
currently being built will also feature its technologies. As for for such a platform, particularly for withstanding sloshing in
FLNG ( floating LNG) vessels, only a few are in service: GTT FLNG units, and the company had to demonstrate to Shell,
equipped 10 Mark III tanks to Shell’s Prelude, the world’s largest amongst others that its membrane containment systems could
FLNG vessel, and delivered systems for Petronas’ two smaller be adapted to work on the Prelude project offshore northwest
FLNG vessels operating offshore Malaysia. In addition, GTT Australia. Instead of the conventional arrangement of one row
technologies will be fitted to the first ultra-deepwater FLNG, of four to five LNG storage tanks, the design of a central cof-
under construction by Samsung in South Korea for Eni’s Coral ferdam solution between two rows of five tanks extending the
South gas field in 2,000 m (6,562 ft) water depth in Area 4 of length of the platform was adopted. This solution reduces the
Mozambique’s offshore Rovuma basin. The facility is due to start risk of sloshing loads as well as acting as structural support for
operations from mid-2022, producing 3.4 MM metric tons/yr the platform’s very heavy topside. Other tank solutions, such
(3.75 MM tons/yr) of LNG over a designed lifespan of 25 years. as spherical tanks, would not afford enough flat deck space to
GTT has licensed its membrane technology to leading Far accommodate the topsides.” Other alternative solutions which
East shipyards including Samsung, Hyundai Heavy Industries, do feature a flat deck, have been, according to Colson, consid-
DSME, Hudong Zonghua, and Jiangnan. Last December, it also ered to be more expensive.
signed a technical assistance and license agreement with Wison “In a scenario of two banks of normally dimensioned 50-m
Offshore & Marine in China to equip FLNGs, FSRUS, floating (164-ft) wide tanks, there would be a potential for quite an
storage, regasification and power generation units and other important amount of liquid motion at certain filling levels.
vessels with its membrane containment systems. Teams of the But if the tank breadths are halved, it reduces the sloshing
licensed partners are then trained by GTT in the principles of effect significantly. In addition, FLNG vessels are massive, sta-
membrane installation. ble structures that do not move excessively in water compared
According to GTT’s Commercial Vice President David Colson, to normal vessels.”
the company undertakes most of its R&D at its headquarters in The redundancy built into the design means that nine of the
St Rémy-lès-Chevreuse south of Paris. “We study the materials tanks can continue to operate normally while the other tank is
that go into the containment system: all selected materials and taken off line to be emptied of gas. The process entails visual
developed sub-assemblies then have to be qualified and tested inspections and checks for tightness, with maintenance and
at room and cryogenic temperatures. We then approve suppli- repairs, if required, performed on site. “If there is an issue at
ers and shipyards for the fabrication process. the higher part of the tank,” Colson said, “our team may have to
“Our facilities include a liquid motion/sloshing laboratory erect scaffolding in the tank on site, because the vessel cannot
with four machines designed to simulate all the different move- be brought ashore at any time for dry-docking.”
ments of the LNG vessel, with 6 degrees of freedom. We use a “Our membrane systems on all our clients’ vessels are con-
1/40 scale tank, equipped with pressure sensors, to measure stantly monitored for any potential leak in the tank or barrier.
at laboratory scale how the liquid in the tank would behave We also conduct visual checks to verify that there are no objects
on an offshore vessel or platform. We can then optimize the in the tank which could become loose. A bolt which has become
membrane system design through reinforcements or to pro- unbolted may lead to damage under sloshing in operation.”
pose modifications to the design of the platform itself through GTT has also been awarded a contract with Shell to main-
changes in the dimensions or adding stability. GTT also works tain the tanks on Prelude on a five-yearly basis.
with universities in Europe if we do not have the necessary For LNGC’s, FSRUs and FLNGs, GTT subsidiary Cryovision
equipment in-house. provides different types of membrane test services such TAMI
“Offshore ship-owners are less concerned about improv- (Thermal Assessment of Membrane Integrity) for testing the
ing thermal performance to reduce the boil-off rate (a prime tightness of tank secondary barrier as well as other tightness
concern for LNG carriers; matching the boil off to the engine tests (Primary barrier, Global tank test). The company may
requirements). However, the thermal performance of tanks can also use in-tank equipment to facilitate testing such as: MOON
be an issue for offshore re-gas applications as a resultant boil- (Motorized BalloON) operates in similar fashion to a drone. In
off situation could halt a send-out of an FSRU.” this case, a balloon is dispatched to inspect a tank’s primary
A different approach is required for modeling sloshing on membrane. TIBIA (Tank Inspection by Integrated Arm) is an
offshore re-gas/FLNG vessels, Colson explained. “With an LNG arm-like tool developed by GTT that can roam around tanks
carrier, you typically operate it up to 10% of tank height when on FSRUs and FLNGs and perform maintenance of the pri-
on ballast, and not below 70% on laden voyages. But for offshore mary membranes.
vessels, you must be able to maintain the filling height in all GTT continues to offer innovative services for monitoring and
conditions. So we must demonstrate to the client that our sys- maintaining the membrane tanks offshore. Recently GTT North
tem can perform sufficiently well to meet all sloshing require- America signed a five-year global technical services agreement
ments under the offshore environment.” with Excelerate Energy to support maintenance of nine FSRUs
“At the start of FLNG development, some years ago”, he equipped with NO96 membrane technology. •

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• FRANCE

Floating offshore wind tower.


(Image courtesy DORIS Group)

DORIS maintaining focus on


renewables, lower-cost production
FRANÇOIS THIÉBAUD, DORIS GROUP

AGAIN, ANOTHER CRISIS for the offshore industry, or rather, two piped to shore. Preliminary studies are complete and in February, the
crises, with COVID-19 and the oil price slump. However, DORIS is UK government launched the project’s next phase which involves
confident it can adjust to these unexpected market conditions, as developing a 2-MW prototype. Later, with a full-scale unit, a single
it has done over the past 55 years, thanks to its diversified activity offshore 10-MW floating wind turbine should be able to produce
and R&D investments. sufficient low-carbon hydrogen to heat around 2,500 homes, fuel
Despite the recent developments, climate change remains a over 120-240 buses, or run eight to 12 trains.
worldwide concern, and the reduction of greenhouse gases (GHG)
in oil and gas production is now part of the group’s design remit, OFFSHORE WIND FARMS
from conceptual to detailed design stages. One current project Renewables are also part of the solution. DORIS has developed two
involves reducing GHG generation onboard four FPSOs off West innovative concepts for floating wind, with the Nerewind semisub-
Africa: DORIS is preparing recommendations to that effect. mersible suitable for deeper water, and the Articulated Wind Col-
Another global priority is the replacement of hydrocarbons with umn (AWC) for intermediate depths. The group’s first project in this
other sources of energy. The group is participating in various ini- field dates back to 2002 with a pre-front-end engineering design
tiatives, including carbon-free generation of hydrogen. Its UK sub- (pre-FEED) study for a wind farm offshore Zeebrugge, Belgium.
sidiary ODE is collaborating in the DOLPHYN project (Deepwater Since then, the group has provided engineering and associ-
Offshore Local Production of HYdrogeN) to design the process ated services to developers for projects such as Ormonde, Scroby
equipment, electrical system, and overall technical safety require- Sands, and Wikinger. The experience led the group to expand this
ments for the production of hydrogen from seawater. service to Asia, with an office in Taiwan in 2016, followed by activ-
The facilities will be installed on a semisubmersible, supporting ities in Japan, Korea, Vietnam, and Boston, and prospects for fur-
a wind turbine to provide carbon-free energy, with the hydrogen ther developments.

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FRANCE •

FACILITY LIFE EXTENSIONS DIGITALIZATION


At the same time, the group remains active in more traditional oil Finally, and most importantly, the industry is finally catching up on
and gas activities. One of the industry’s main challenges today is the digitalization journey several years after the automobile, aero-
extending the lives of existing facilities that have reached their orig- space, and other sectors. Digitalization leverages huge amounts
inally designed lifespan of 20-25 years, but which can still produce of data that oil and gas operators have compiled over the years in
available reserves. DORIS is assisting several initiatives in Africa their operations through sophisticated instrumentation packages
and the Middle East to assess the remaining life of equipment and and control systems. Yet much of this data is either used ‘live’ or
structures and to recommend life extension modifications. more often, not at all. It is rarely used through statistical analyses
Cost reduction remains the primary driver of most operators, because the data is stored in multiple databases (PI, SAP, SharePoint,
and much more so in periods of depressed oil prices. One signifi- EMDS, etc.) with no linkage between them. But when assembled in
cant lever is the reduction of opex by converting facilities that were a single location, the data can be mined to reduce opex and capex
designed only a few years ago to operate manned to unmanned by decreasing design margins and potentially increasing revenues
service. Through ODE, the group held operation and maintenance though production improvements.
contracts for several platforms in the southern North Sea for over DORIS is developing solutions for digital twins with a view to
15 years. It is now Duty Holder of two greenfield developments, producing prescriptive analytics for operators. This initiative started
and has expanded its Aberdeen office to target central North Sea several years ago with ‘intelligent 3D-models,’ and is now moving
operations. One idea is to design facilities with a once-yearly visit into the pilot phase for actual greenfield and brownfield facilities.
specification, such as the 2018 design the group produced for a The group has also provided several digitalization proof of concepts
wellhead platform offshore Argentina. to oil and gas clients from California to Africa to the North Sea.
New facilities can also be designed with disrupting technology The present crises will change many industry activities to a
and commercial choices, such as small-scale FLNG development in new ‘normal,’ but DORIS aims to prepared for the next wave of
which DORIS is presently involved for various West Africa prospects. upheavals via continued R&D initiatives and the contributions of
its worldwide subsidiaries. •

ENGINEERING
FOR
ENERGY

CHALLENGING CONVENTIONAL THINKING


IN TODAY’S COST DRIVEN MARKET

DORIS GROUP
58 A, rue du Dessous des Berges - 75013 PARIS - FRANCE
Phone : +33 1 44 06 10 00 - Fax : +33 1 45 70 87 38
MAY 2020   OFFSHORE | WWW.OFFSHORE-MAG.COM57 www.dorisgroup.com

2005OFF51-62_FranceSup.indd
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4/20/20 11:38 AM
8:22 AM
• FRANCE

iXblue develops second Gaps USBL


system for shallower-water subsea tasks
NAVIGATION/POSITIONING specialist iXblue has expanded
its Gaps range of ultra-short baseline (USBL) systems for subsea
operations support.
The newly developed Gaps M5 is an omni-directional, medi-
um-frequency USBL acoustic positioning system which like the
established Gaps M7 does not require on-the-field calibration. It
is designed for positioning and vertical/horizontal tracking of sub-
sea infrastructure, from shallow-water to medium water depths
(down to 1,000 m/3,281 ft), with a claimed accuracy of better than
0.5% of the slant range up to 995 m (3,264 ft).
The motion sensor embedded within the system is a free-of-
export Octans Nano attitude and heading reference system, and
is based on the company’s FOG (Fiber Optic Gyroscope) technol-
ogy, said to ensure stable heading roll and pitch compensation
and a true north reference. Gaps M5, with a weight of 14 kg, is
smaller and more compact than Gaps M7 (17 kg), features that
are said to further facilitate installation and operation. As with
Gaps M7, after installing and turning on the system, it is ready
for the user to operate.
According to iXblue, when positioning a vessel at a distance of
500 m (1,640 ft), Gaps M5 is accurate up to a maximum of 2.5 m
(8.2 ft), and the maximum operating range can be achieved even
in noisy conditions. The export-free capability is said to be partic- Gaps M5 under deployment. (Images courtesy iXblue)
ularly advantageous for operations in strictly regulated offshore
locations. Subsea applications range from tracking of divers, AUVs,
ROVs and tow fish tracking to dynamic positioning, long baseline
transponder ‘box-in’, subsea structure installation and pipelaying.
Gaps M5 retains the main design features of the M7, but with
shorter legs and an overall height around 12 cm (4.7 in.) lower. Its
3D four-hydrophone antenna has different leg lengths to enhance
horizontal tracking and the acoustic capability is said to provide
maximum aperture, allowing up to 200° omni-directional coverage
without the need to tilt the antenna. This is claimed to be a major
advantage in shallow water and horizontal tracking conditions,
especially when multiple vehicles must be simultaneously located
at 360°. The system can also be used for dynamic positioning as
an acoustic transceiver, with one beacon in USBL mode or three
or more beacons in LBL mode.
Since iXblue introduced Gaps M7 as the first pre-calibrated
USBL system in 2005, over 300 have been deployed worldwide.
Gaps M7 remains the best option for more complex survey require-
ments such as subsea multi-beam and laser scan positioning, as
it provides an accuracy that can reach 0.06% of the slant range
up to 4,000 m (13,123 ft). According to Gary Bagot, iXblue’s Busi-
ness Developer, Subsea Navigation & Energy Market, many of the
company’s clients have confirmed this accuracy at a distance of

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FRANCE •

thousands of meters from the target. One in terms of providing an overview of the situation - but the Gaps M7 was able to do it in
application that benefits from this capa- such noisy environment. In addition, two transponders were installed on each pipe sec-
bility, he explained, is laying a pipeline in a tion allowing complete monitoring through iXblue’s Delph Roadmap Software’s 3D view,
field congested by structures and geohaz- delivered with every product in the Gaps Series.
ards. “If the USBL is sufficiently accurate, it “Another client used a Gaps M7 in combination with our 2D/3D visualization soft-
can be used to narrow down the optimum ware on an offshore construction vessel to ensure safe placement of the structure on
corridor for the pipeline. And therefore, the seafloor.” •
unlock shorter safe pipeline routings and
decrease sleepers dimensions.”
Gaps M7’s USBL antenna and Phins
Fiber-Optic-based inertial navigation sys-
tem (the latter pre-calibrated at the com-
pany’s factory) are combined within the
same housing. Its acoustic capabilities,

Mini and
which include wideband signals, are said
to maximize performance even in the
most problematic conditions, and the 3D
acoustic array allows for tracking even at
angles above horizontal. Offshore applica-
tions range from structure placement to

mighty.
ROV navigation, AUV operations, towfish
tracking, cable/pipelay support, touch-
down positioning, mattress placement,
plough/trenching positioning, rig and
anchor moves, riser positioning and OBC
node placements for 4D seismic surveys.
Both Gaps M7 and Gaps M5 are based
on an open architecture with serial and
Ethernet connectivity and Web control OUR USBL FAMILY IS GROWING
command, and according to iXblue both
are also compatible with third-party equip-
ment. Even if they operate on the same
medium-frequency bandwidth, the two
systems can be deployed simultaneously,
Bagot added, typically as permanent and
temporary subsea positioning systems.
Application wise, the new Gaps M5 is
perfectly suited for inshore applications,
while Gaps M7 can cover all applications, NEW
from inshore to offshore, with ultimate
performance. Gaps M5
Among recent applications was a pipe- Export-free and
lay project where the lay barge already omnidirectional
USBL system
had a permanent USBL system onboard. operating from the
“However, when the laying operation surface to medium
started, this could not provide the client’s water depths (995m).
requested accuracy. In this case, the situa-
tion was resolved by installing a Gaps on
the vessel’s stinger.
“For another project, in shallow water
depths, the client wanted to install pipes in
20-m [65.6-ft] sections, one after the other.
The operation, involving three divers, and
an inspection ROV, was quite challenging

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4/9/20 11:38 AM
9:19 AM
• FRANCE

Class survey plays its


part in the conversion
process. (All images
courtesy Bureau Veritas)

Re-purposing gas carriers


for offshore re-gas, storage roles
JULIEN BOULLAND, BUREAU VERITAS

CONVERSION IS OFFERING a second life to gas carriers, but as more countries see the capex and opex-reducing potential
repurposing these vessels as floating storage and regasification these units bring compared to onshore LNG terminals.
units (FSRUs) and floating storage units (FSUs) comes with Furthermore, because they offer greater flexibility and are
technical and operational challenges for owners. less infrastructure intensive, FSRUs can provide an intermediate
The liquefied natural gas (LNG) market is growing as more solution (the time charter can be less than five years), during
countries turn to gas to meet their rising energy needs. In par- the length of time it takes to develop a permanent onshore
allel, there has been an increase in the number of gas carriers solution. As the FSRU sector is still relatively new and develop-
providing LNG transportation and distribution. In recent years, ing, relationships between countries that require LNG and the
numerous laid-up ships have become available for varying rea- FSRU providers can be complex. There are several key points
sons: they may be nearing the end of their design lives, or may be that FSRU and FSU developers should consider to ensure their
outside of modern specifications, phased out, or off-charter for vessels are safe, fully compliant with environmental regulations,
the market. Owners are seeking to repurpose their vessels and and appropriate for market demands.
extend their lifecycle by converting them to FSRUs and FSUs Regulatory questions at both flag state and class levels are a

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FRANCE •

major consideration for FSRU/FSU con-


versions. Depending on the intended
modifications, project specifications
and conversion work, different systems
may be decommissioned, removed, mod-
ified, or added. Project developers must
account for all statutory and classifica-
tion concerns, including International
Marine Organization regulations such
as the International Convention for the
Safety of Life at Sea (SOLAS), the Inter-
national Convention for the Prevention
of Pollution from Ships (MARPOL) and ABOVE: Comprehensive structural analysis ensures fitness of candidate ships for
the IGC Code, which ensure that ves- conversion. BELOW: Thorough thickness measurement of the hull.
sels comply with safety and environmen-
tal requirements. Coastal state and local
port authorities may also need to be con-
sulted, and their requirements taken into
consideration.
Technical challenges abound. Gas car-
riers may need to undergo modifications
to their power generation systems (e.g.
boilers, generators), power distribution,
propulsion, LNG cargo tanks, systems
for cargo, cargo control, mooring, han-
dling cranes and others. Owners look-
ing to remove certain equipment must
assess how this can be done safely, and
under what conditions. From review-
ing structural elements, to upgrading
cargo containment systems, to adding
new equipment, the list of technical chal-
lenges is considerable for conversion to
FSRUs and FSUs.
Compliance with local environmental
regulations also needs to be considered.
In many cases, an FSRU or FSU will be in which has implications for conversion work on hull structure and equipment. Finally,
a stationary position close to shore and there is the issue of cost, as owners seek to limit the price of on-site maintenance and
potentially near to other marine users minimize opex for their vessel’s extended lifecycle.
such as fishing vessels. FSRUs use consid-
erable amounts of seawater to heat up the HOW CLASSIFICATION SOCIETIES CAN HELP
LNG during regasification and the change Classification societies can perform a range of analyses for gas carrier hull structures,
in temperature of the discharged water cargo tanks, machinery, mooring systems, and more. Evaluation of hydrodynamics,
is considerable. Therefore, it is essential design loads and scantling data, as well as structural assessments, offer owners a clear
that the vessel operators are fully aware picture of their vessel’s condition, and allow classification societies to assist in devel-
of and compliant with local regulations oping a full inspection program. However, it is important that the product developer
on water emissions as well as others relat- engages and involves a classification society at the earliest opportunity in a project,
ing to environmental issues such as air and that the relationship is maintained throughout the design and build process.
quality and noise. The classification society will be able to provide counsel and guidance from a reg-
Another key question is how to keep a ulatory perspective from the outset, to highlight potential challenges and how these
vessel on location for an extended period, may be overcome. By helping the product developer to avoid costly errors in regula-
potentially exceeding the typical five-year tion compliance and design early on, and by providing advice and expertise support
dry-docking regime. Project developers along the way, the classification society can be seen as an enabler for the development
frequently seek a ‘no-dry dock’ approach, of a safe, environmentally responsible, and cost-effective asset. •

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Les “Habitués” de OTC

2005OFFFrenchSup.indd 62 4/23/20 10:29 AM


2005OFF51-62_FranceSup.indd 62 4/28/20 11:38 AM
EQUIPMENT & ENGINEERING •

Air filtration system helps improve gas


turbine performance on BP’s Clair platform
GRAEME TURNBULL, AAF INTERNATIONAL

THE OFFSHORE oil and gas industry


has long focused on the importance of
maintaining gas turbine engines, but a
critical issue that often escapes atten-
tion is air filtration systems. Located
at the front of the gas turbine, these
systems can enhance gas turbine per-
formance and availability, while pro-
moting better compressor cleanliness
and long-term part integrity. As seen
on BP’s Clair platform in the North
Sea, optimum air filtration systems can
unlock considerable financial, oper-
ational, and environmental benefits.
Gas turbines are essential to the pro-
duction of oil and gas, running both BP piloted N-hance on the Clair platform. (Courtesy AAF International)
mechanical drive and power gener-
ation applications on offshore plat- LIMITED PROTECTION
forms. However, they are repeatedly When it comes to protecting gas turbines from offshore air, and all that is con-
exposed to the most arduous atmo- tained within, air filtration systems play a critical role, operating on the front line
spheric conditions. of defense. Currently, around 85% of offshore gas turbines are protected by small
Air in the offshore environment con- high velocity filtration systems that use low efficiency filter bags. These only pro-
tains numerous airborne particles that vide protection against coarse particles, and fail to capture sub-micron particles
have the potential to harm gas turbines. offshore. It is worth noting that the air quality at platform level is significantly
These include water droplets, sea salt different to sea level. At the height of an offshore platform the majority of par-
aerosols, salt in solution and sub-mi- ticles in the air are sub-micron in size. The vast majority of particles of this size
cron particulate, as well as industrial will pass through high velocity filter bags, in fact only 5% will be captured. This
airborne particulates from burnt and can lead to lost production revenue, unplanned gas turbine shutdowns, reduced
unburnt hydrocarbons, drilling activi- component and engine life, premature engine failure, and low turbine compres-
ties, mud burn, and grit blast. sion efficiency and high CO2 emissions; especially unwanted given today’s current
Cooling passages on the turbine market dynamics and the low price of oil. By contrast, high efficiency particu-
blades in the hot end of the gas tur- late air filter (EPA) 12 technology captures 99.95% of sub-micron particles. This
bine must remain free of contamination protects and enhances the performance of expensive gas turbine components.
and clear of blockages. If they are not As operators have become aware of the benefits of EPA E12 air intake filtration,
suitably protected from the elements there has been a push to upgrade existing high velocity units installed offshore.
offshore and become blocked this will However, traditional EPA E12 filtration technologies - with much larger equip-
result in fatigue and cracking, caus- ment envelopes - have necessitated that the air intake housing is replaced in its
ing significant damage, and incurring entirety. This increases foundation loads and incurs significant costs and down
high costs and downtime for repair. time. However, there is another route, using a new EPA E12 system which pro-
When running with sour fuel, the com- vides all the associated benefits of EPA E12 air filtration, but can be quickly and
ponents within the turbine section are seamlessly installed within the existing high velocity air intake filtration system.
also exposed to accelerated hot end
corrosion. This phenomenon results BP’S CLAIR PLATFORM
from the combustion of sour fuel gas, BP’s Clair platform operates three Titan 130 gas turbines (GTs 1, 2 and 3) employed
which is rich in hydrogen sulphide and in power generation application to provide power to the asset. Each gas turbine
reacts with the salt from the intake air. was experiencing compressor blade fouling, corrosion and erosion, as well as

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• EQUIPMENT & ENGINEERING

turbine section hot gas path corrosion. Operationally, this be urgently deployed in a field trial as a technology collab-
resulted in poor engine reliability, reduced availability and oration initiative.
premature engine overhaul and/or replacement. All of which Thanks to a longstanding relationship between the two
severely impeded the long-term strategic planning for the companies, BP was able and confident to pilot AAF’s N-hance
platform for both production and maintenance. technology. The N-hance filters and conversion parts were
Eventually, the poor filtration provided by the high veloc- delivered to the operator within five weeks, and commis-
ity bag system resulted in a catastrophic failure of GT2 after sioned along with the new GT2 engine on the Clair platform
12,000 operating hours, which equated to only one-third of in February 2017.
the engine design life. The root cause of the failure being inlet The pilot delivered excellent results. There was an increase
guide vane seizure and in turn compressor section imbal- in engine availability resulting from a reduction in unplanned
ance and ultimately blade liberation. This resulted in irrep- downtime and shortened shutdown periods. There was also
arable damage and a new replacement engine was required, a decrease in CO2 emissions improving sustainability, as well
incurring unplanned long-term shutdown and significant as retained power output (compressor efficiency) and heat
unbudgeted costs. rate. Critically, BP has also eliminated the risk of potential
BP was aware that AAF International was in the final GT failure due to corrosion at just one-third of design life.
stages of developing a new EPA E12 high velocity filtration Commenting on the project, BP’s asset team said: “The
solution. Critically this new design could be installed within upgrade project has enabled improved reliability, cost sav-
an existing high velocity housing with no penalty in differ- ings and will feed into the reformation of outdated air filtra-
ential pressure (dP), therefore negating the need for a larger tion standards as well as playing a part in helping to achieve
housing replacement. Because of this failure on GT2, BP was offshore asset efficiency of 90%.”
expediting the GT original equipment manufacturer (OEM)
for fasttrack delivery of a replacement engine and approached NEW MECHANISMS TO DRIVE TECHNOLOGY
AAF to determine if this new technology (N-hance) could ADOPTION
EPA E12 air filtration is currently available within low veloc-
ity systems and already in use on assets owned by super
majors. However, few operators are aware that EPA E12 fil-
tration is now supported within high velocity systems. This
is partially due to the fact there needs to be significantly

TAKE THE PLUNGE! more support for the widespread adoption of the technol-
ogy used on the Clair platform. This includes the adoption
of EPA E12:EN1822 standards within OEM offshore turbine
specifications to extend the life of all new gas turbines oper-
Deepwater Petroleum ating in the offshore environment and provide the opera-
Exploration & Production is tor with the added benefit of a small and lightweight filter
the most comprehensive and
housing in comparison to the traditional low velocity large
E12 filter housings. Operators also have their part to play
authoritative text available
and need to question why they are repeatedly offered low
on the business, engineering,
efficiency filter bags for high velocity systems. The accepted
science, and technology norms of poor air filtration in offshore environments can
of this multibillion-dollar Best-Selling
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quent water washing of the gas turbine, increasing produc-
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• New chapters on geology and geophysics,
rigs, and service vehicles operational life of the gas turbine. Furthermore, a sustained
• Greater coverage of engineering and scientifc effort is needed to communicate the evolution in filtration
schemes used in deepwater
performance and demonstrate the findings, which support
• Final chapter presents the latest technology used in the “third

wave” of industry evolution the use of new proven EPA E12 technologies.
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tion now more critical than ever, taking the necessary steps
to address current technology adoption should be delayed
no further. •

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World Trends and Technology for Offshore Oil and Gas Operations

2005OFF63-68_ee.indd 65 1
2001OFF_EndeavorOffshore 4/29/20
1/2/20 11:39 AM
1:26 PM
• EQUIPMENT & ENGINEERING

Changing the fundamentals


of subsea well completion
New tree technology rethinks traditional system design

JUDY MURRAY, CONTRIBUTING EDITOR

IN EARLY 2016, when the oil price dropped below $30/bbl, the oil and gas industry took a
close look at offshore development costs and realized things needed to change. Operators
worked with suppliers to achieve cost reductions and cooperated in some cases to share
services like crew transfers. Today, with oil prices at a 21-year low, making changes is even
more critical, and the solutions that were feasible four years ago are not equal to the task.
New technologies and new thinking are needed if offshore developments are going to be
economically viable.

DECREASING COMPLEXITY
According to Dril-Quip CEO Blake DeBerry, delivering better solutions does not mean
tweaking components in traditional designs. “It is about rethinking how we do things to
deliver permanent cost savings,” he said, “and that means new ideas.”
DeBerry jumpstarted plans for differentiation when he became CEO in 2011. He ramped
up the company’s R&D program and invested in full-scale testing of the entire subsea well-
head system.
“This was our first foray into how to develop products that structurally change how cus-
tomers drill wells offshore,” DeBerry said.
The decision to pursue a different direction for the subsea vertical tree was initiated by
a comment from a frustrated operator. The operator’s question was simple: “Why can’t we
run the tubing hanger in the wellhead without regard to orientation, lock it down, get a
In-house validation testing of the VXTe
good test and land the tree at any orientation required? system. (Images courtesy Dril-Quip)
“That was an ‘aha moment,’ DeBerry said. “It seemed to me that, compared to traditional
systems, there had to be a simpler and less complicated solution.” DeBerry and his team of
30 engineers and designers began brainstorming about how to land the tubing hanger, and
five days later, Dril-Quip filed a provisional patent. “Then, the real work started,” he said.

DESIGNING A BETTER TREE


There are several challenges with traditional subsea vertical tree designs. Wellhead inter-
faces must be capable of handling the stack-up tolerances of casing hangers, and the tub-
ing hanger must be oriented relative to the flowline connection system. Most conventional
systems use a tubing head spool, which creates the need for temporary well barriers and
additional BOP trips. Alternatively, other complicated means of orienting the tubing hanger
within the BOP can be performed, enabling the tubing hanger to be installed directly into
the wellhead. Dril-Quip’s new concept needed to simplify the landing and connection pro-
cesses without introducing additional risks or hazards.
The VXTe system addresses those challenges with the industry’s first non-oriented 15
ksi, in-the-wellhead completion, vertical tree design. This unique tree allows operators to
move from drilling to completion without pulling the BOP stack.
One of the most critical design elements of the tree is that it eliminates the tubing head,
DeBerry explained. For conventional systems, installing a tubing hanger in the wellhead
requires the use of BOP pins, rotational orientation tools or other equipment to align
The VXTe system allows drilling and
and run the tubing hanger. The Dril-Quip tree system eliminates the need for orientation completion to be carried out without pulling
because the stab sub assembly on the tree allows the tubing hanger to be installed like the BOP stack.
a casing hanger without regard for orientation and allows drilling and completion to be

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EQUIPMENT & ENGINEERING •

carried out without temporary well suspension or pulling the BOP a tubing hanger in the same lead time as a wellhead so when we
stack. It also removes the need for well barriers, which eliminates mobilize rigs to the drill site, the installation process is streamlined.
risk and saves time. There is no rig remobilization. And if I can push drilling closer to
The stab sub-assembly – with 7-in./10 ksi, 5-in./15 ksi, and 5-in./20 the time I’m going to complete the well, it improves IRR because
ksi ratings – uses the same sealing interface for the stab to the tub- the money has been spent in a narrower window,” he said.
ing hanger. “A single tubing hanger running tool works for all these
systems,” he said. TAKING RISKS OUT OF THE EQUATION
The coupler body housing element of the stab assembling con- While time and cost savings were critical design considerations,
tains the hydraulic and electric couplers. It can rotate +/- 180 degrees according to DeBerry, minimizing safety risks was also a “must
to allow the 13 hydraulic and two electrical coupler lines to connect have” for the new vertical tree. The ideal solution would reduce the
to the corresponding couplers in the tubing hanger. This exceeds amount of required hardware and necessary trips and keep work-
IOGP specification requirements for nine downhole hydraulic func- ers out of harm’s way.
tions and one electrical function, providing optionality for future “A seasoned worker told me when I started in this industry, ‘Don’t
innovations in smart completions that could require more down- ever run something down the hole if you don’t have to,’” he said. “If
hole lines. you eliminate running things, you eliminate risk.”
Automatic space-out adjustment is another design advantage, This was the primary driver for a design that simplifies the instal-
DeBerry said. The tubing hanger of the VXTe contains a mecha- lation process, eliminating placing pins in the BOP stack to orient
nism to automatically adjust to variances in the hanger’s position. the tubing hanger or having to install a tubing spool, which requires
When the tubing hanger is landed, a pressure test verifies the a 40-ton piece of hardware to be maneuvered into place.
hanger is in the correct position. Then, a hanger lock mandrel is Removing components and shortening the installation process
placed with a tubing hanger running tool, creating a flat lock man- also delivers environmental gains.
drel-to-lock ring interface. “The tubing hanger can be picked up and “ESG (environmental, social and corporate governance) is import-
loaded against the shoulders of the wellhead to establish a known ant for our industry,” DeBerry said, “so our designs are created with
elevation, and the VXTe tubing hanger adjustment mechanism the goal of reducing waste and carbon footprint in any way we can.”
automatically activates and removes any gaps,” he said. By designing a vertical tree that does not use a tubing spool, the
A 15-ksi rated annulus isolation valve inside the tubing hanger company has eliminated 40 tons of steel and the associated cost
provides a reliable barrier in place of a wireline plug for installation of manufacturing it, moving it, and installing it. The reduction in
and interventions. The annulus flow path isolates the hydraulic hardware and tooling within the VXTe eliminates more than 30,000
and electrical couplers, which protects the wellhead gasket from HSE heavy lift touch points.
contact with the annulus fluid and adds another barrier between “By itself, it isn’t huge, but every little bit helps,” DeBerry says.
the annulus fluid and the environment. “Although there is a lot of focus toward renewables, oil and gas will
The ingenuity of the VXTe system earned it a Spotlight on New be around for a long time. We need affordable, reliable energy, and we
Technology Award from the 2020 Offshore Technology Confer- should put the least amount of carbon into the atmosphere to get it.”
ence (OTC).
THE VALUE OF STANDARDIZATION
CAPTURING COSTS The introduction of the VXTe sets new expectations for flexibility and
“We are proud of the elegant engineering and what that delivers to efficiency, DeBerry says, delivering a product that provides standard
the end user,” DeBerry said, explaining that the innovative design functionality with exceptional benefits and allows predictability in
eliminates multiple steps in the installation process and reduces the installation. This sets an expectation for operators by standardizing
time from FID to first oil production. “Being able to eliminate steps is installation and improving project economics through enhanced
as valuable as reducing capex. A 10% reduction in capex and a 10% delivery schedules, reduction in engineering, manufacturing and
reduction in time have a similar impact on the breakeven point.” installation costs, and less risk in project execution.
According to DeBerry, one operator calculating the potential Dril-Quip intends to standardize the VXTe with a single tubing
value of Dril-Quip’s VXTe in terms of reduced installation time esti- hanger with multiple ports, some of which will be plugged if they
mated savings at $3 million to $4 million per development well. “The are not required. This will allow the company to deliver the tubing
Dril-Quip design can deliver savings of $30 million to $40 million on hanger with the other wellhead equipment more quickly, he said.
a 10-well drilling program – and that’s meaningful,” DeBerry said. Making this shift requires a willingness on the part of operators
The interesting thing about the economics, he said, is that when to reevaluate some of the components they used to have tailor
rig rates go up, the value of installing the VXTe goes up. “If the spread made, DeBerry said, but the savings in time and installation will
cost is $600,000 per day, and this technology saves a day and a half, be strong drivers for adoption.
it has delivered $900,000 in savings. If the spread cost is $1 million, Dril-Quip has sold the first VXTe tree which is scheduled for
the same product delivers $1.5 million in value.” installation at year-end. “What Dril-Quip is doing is something
Additional savings can be captured by sequencing the drilling totally different,” DeBerry said, “we are fundamentally changing
program differently because running the tubing hanger is exactly the norm for the industry.” •
like running the casing hanger. “Our objective is to manufacture

MAY 2020   OFFSHORE | WWW.OFFSHORE-MAG.COM67

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• EQUIPMENT & ENGINEERING

Slim stop collar intended for


close-tolerance applications
ESPEN SØRBØ, ACE OIL TOOLS

THE SECURE PLACEMENT of tools and accessories along both


well construction and completion strings is an essential compo- The ‘ratcheting mechanism’. (All
images courtesy Ace Oil Tools)
nent of all successful downhole applications. Traditional stop col-
lars, while inexpensive, are susceptible to failure due to limited
holding force on the pipe. Slippage on the pipe of any kind risks
damage, increases the chance of junk downhole, and undermines
the structural integrity of the well. While centralizer subs offer an
alternative solution to stop collars, they are more expensive and
impose limitations on string design.
Ace Oil Tools wanted to create a new cost-efficient solution that
worked under all conditions. Removing the risk of slippage on the
pipe, while also increasing the holding force for operators looking
to centralize the pipe, the Ace Ratchet Collar (ARC) brings unri-
The Ace Ratchet
valled holding force to the market. With the ability to be installed Collar pre-installed
under all operating conditions without affecting drift, it can be used on casing in the
with any third-party centralizer or casing accessory. workshop.
The ARC was built around the company’s proprietary ‘ratchet-
ing’ mechanism. Simple and innovative in design, the ‘ratcheting’
mechanism works by pressing the female and male parts of the
collar together, creating a self-locking device. The carefully-de-
signed teeth are machined on the male part, which generates the
holding force by gripping onto the pipe.
Reliably anchoring accessories to the casing without a com-
plex installation process, each unit can be easily installed offline.
Therefore, it requires no pipe preparation or transportation offsite
for installation. A bespoke installation tool is used to securely fix
the ratchet collar to the outside of the pipe. With minimal HSE
impact to workers and environment, the full process usually takes
less than a minute per unit.
Since it was developed in 2012, the ARC has been installed on
projects across 27 countries and five continents. Smart and cost-ef-
fective, the ARC technology adds reliability and efficiency when
attaching tools to the pipe. It typically results in cost savings of up
to 80%, while also protecting equipment downhole. (ADC) is a rotating, solid-body centralizer for use in casing and liner
The ARC locks together to deliver a holding force equivalent to drilling. The Ace Tracer Carrier (ATC) houses and protects tracer
more than 90,000 lbs. Tested to withstand axial loads up to 180,000 elements conveyed into the wellbore on the production string.
lbs, while meeting passthrough requirements, its slim design has For a major operator in Senegal, a stop collar with a slim design
been specifically intended for close-tolerance applications. This is was required to be installed on a 11¾-in. casing, pass through a
important especially in cases where it needs to pass tight restric- drift restriction of 12¼ in., and to provide a holding force under
tions and effectively manage surge and swab. The slim design also all operating conditions. Forty ARCs and 20 centralizers were
allows for faster running speeds, even in formations with narrow installed offline at the pipe yard on 10 joints. The pipe was sent to
mud margins. The collar makes minimal impression on the pipe the rig, then run down to a total depth of 2,776 m (9,108 ft). The
and can rotate independently of the casing or liner string. casing annulus was circulated clean and cement was pumped.
It is available in standard, slim, and ultra-slim models. ARC works The company prevented centralizer movement while the ARC
as a stop collar to hold both solid body and bow-spring centraliz- was running in hole. The cost savings of using the collar was in
ers or other accessories on the liner. The Ace Drilling Centralizer the range of $80-$150,000. •

68 WWW.OFFSHORE-MAG.COM | OFFSHORE   MAY 2020

2005OFF63-68_ee.indd 68 4/29/20 11:39 AM


BUSINESS BRIEFS •

Subsea Tieback Forum Advisory Board


Standing from left to right: Karl Schnakenburg, BHP; Mark Carter, OneSubsea; Ian Ramsay,
Murphy Oil Corp.; Nancy Chafe, Anadarko, a wholly owned subsidiary of Occidental Petroleum
Corp.; Daniel Byrd, Total; Steve Whitaker; Hess Corp.; Aaron Weber, Talos Energy; George Zener,
BP; Mike Ellis, Oceaneering International; John Smiley, Shell; Randy Seehausen, INTECSEA; Bruce
Crager, Endeavor Management; Tony Matson, Trendsetter Engineering; Antonio Critsinelis, Chevron
Energy Technology Co.; Chris Egan, TechnipFMC; Jeremy Woulds, Subsea 7 Sitting from left to
right: Chris Tam, Saipem; James Wiseman, Noble Energy; Ron Ledbetter, College of Engineering
- TAMU; Advisory Board Chairman Pete Stracke, Equinor; Erin Balch, Wood; Conference Director LEFT: Best Presentation award
David Paganie, Offshore Not pictured: Joey Clements, McDermott International; Don Underwood, winner Mark Farrow RIGHT:
Dril-Quip; Maria Bulakh, Aker Solutions Best Presenter award winner
Michael Dupre
The 20th anniversary of the Subsea Tieback Forum was held Feb. 18-20, 2020 at the Henry B.
Gonzalez Convention Center in San Antonio, Texas. Two speakers were awarded by the Advisory
Board. The Best Presentation award is based on content and Best Presenter for delivery. Mark Farrow of LLOG Exploration won the Best
Presentation award for “Buckskin: Extending LLOG’s Growth in Deepwater Gulf of Mexico”; and Michael Dupre of Shell won the Best
Presenter award for “The Seven Unsolvable Problems of Appomattox.” The annual event will be held March 2-4, 2021 in Galveston, Texas.

PEOPLE
CNOOC Ltd. has appointed Hu Guangjie as to support Seadrill Ltd. on a full-time basis. John T. Roche,
president and an executive director. He succeeds CEO of Seadrill Partners, will assume the responsibilities of CFO
Xu Keqiang, who remains an executive director in addition to his current role until a replacement is found.
and CEO. The African Energy Chamber has appointed Elizabeth Rogo
MODEC Inc. has appointed Ryo Suzuki as as president for East Africa and Leoncio Amada Nze as exec-
executive officer. utive-president for the Central African Economic and Monetary
ClassNK has appointed Hiroaki Sakashita Sakashita Community.
as president and CEO and Koichi Fujiwara as chairman of the President João Lourenço has reappointed Diamantino
board of directors. Pedro Azevedo as Minister of Mineral Resources, Petroleum
Grant Creed has stepped down as CFO of Seadrill Partners and Gas of the Republic of Angola.

MAY 2020   OFFSHORE | WWW.OFFSHORE-MAG.COM69

2005OFF69-72_bob.indd 69 4/28/20 11:38 AM


• BUSINESS BRIEFS

Lloyd’s Register has named Mark Darley as Leith as rentals division manager.
Marine & Offshore COO. Carsten Plougmann Andersen, Jean Cahuzac, Yves-Lou-
National Oilwell Varco has named David is Darricarrere, and Florence Weingarten have joined the
Reid as corporate vice president and chief tech- Société Phocéenne de Participations Supervisory Board.
nology officer. He succeeds Hege Kverneland, Shi Wenchao has joined LOC China as managing
who has retired. director.
Darley
Atkins has appointed Karen Blanc as oper- Captain Jaimie Jones has joined LOC Doha as marine
ations director for its Resources business in the manager.
UK, Europe and Middle East. OspreyData has promoted Charissa Santos to product
Dr. Andy Samuel will continue as the chief manager.
executive of the Oil and Gas Authority for two Sercel-GRC has named Alejandro Villa as global customer
more years. support engineer.
The Petroleum Equipment & Services Asso- Stratagraph has promoted Elizabeth Viator to controller
ciation has elected Rod Larson as chair and Krisanda
and human resources manager.
Michael Reeves as vice chair for 2020-21. Pearl Alan Kiraly, Bentley Systems’ senior vice president for asset
Chu, Karen David-Green, Robert Drum- and network performance, has been elected to the board of
mond, Doug Polk, and Warren Zemlak were MIMOSA.
selected for a first term on the board of directors. Quality Companies has hired Wayne Lacey as vice president
Matt Armstrong, Chuck Chauviere, Galen of operations for Zadok Technologies.
Cobb, Mike Kearney, Craig Lange, Rod Lar- Technical Toolboxes has appointed Joseph Ladner as en-
son, Michael Reeves, Kirk Shelton, and An- gineering performance advisor.
drew Way were reelected to the board of direc- Berg
tors. Melissa Cougle, Barry Glickman, Stefan COMPANY NEWS
Radwanski, Gabriel Rio, and Etienne Roux Flowline Specialists has launched a service and maintenance
were approved as new members of the PESA division. It will operate from the firm’s existing workshop facility
Advisory Board. Edward Bayhi, Jeff Boettiger, at its Oldmeldrum headquarters and use existing personnel.
Marco Caccavale, David Christmas, Kevin AeonX Ltd. has signed a partnership agreement with WFS
Crowley, David de Roode, Todd Ennenga, Technologies to promote and deliver the full range of Seatooth
Bonnie Houston, Michelle Lewis, Scott Liv- products for asset integrity and flow assurance monitoring to
ingston, Josh Lowrey, Jill Massonne, Quay Villa
existing and new clients in Nigeria.
McKnight, Kyle O’Neill, David Paradis, Dan Dolfines and CIMC Raffles have signed a memorandum
Pratt, Kyle Ramachandran, J. Wayne Rich- of understanding to boost floating wind in Europe and Asia.
ards, Bruce Ross, Sanjiv Shah, Tom Shep- AqualisBraemar has opened a new office in the Port of
herd, S. Soma Somasundaram, Dave War- Tyne.
nick, Jim Wicklund, D. Lyle Williams, and STATS Group has opened a new workshop, storage and
Donald Young were reappointed to the Advi- testing facility in Muscat, Oman. The company also secured a
sory Board. two-year extension to a master services agreement with Pe-
Ron Krisanda has joined Survitec as exec- Viator
troleum Development Oman to provide pipeline isolation
utive chairman. and hydrostatic testing services.
The Huisman Supervisory Board has appoint- Unique Group has signed an exclusive rental agreement
ed David Roodenburg as CEO. He succeeds with UK-based OTAQ Offshore to represent the latter’s tech-
Theo Bruijninckx, who will remain the com- nology and products across the Middle East, APAC and the
pany’s CFO. Americas.
Ingrid Due-Gundersen has joined Ocean Add Energy’s Asset and Integrity and Management division
Installer as CFO. has opened an office in Calgary, Canada.
ASCO has appointed Gary Paver as CFO. Lacey
ABS Group has launched an eLearning training platform
Applied Petroleum Technology has hired Carl to provide educational tools and offer a catalog of professional
Peter Berg as CFO. training courses to technical personnel worldwide. The new
Rovco has appointed Reena Rowan as CFO, training solution will feature on-demand courses to augment
Martin Young as chief technology officer, Iain classroom training in the practice areas of cyber security, risk
Wallace as chief scientific officer, Ian Bryan as management, asset reliability, compliance management and
consultant COO, and Simon Miller as general process safety, and to support excellence in organizational
manager of Rovco Scotland. performance. •
Motive Offshore Group has named David Ladner

70 WWW.OFFSHORE-MAG.COM | OFFSHORE   MAY 2020

2005OFF69-72_bob.indd 70 4/28/20 11:38 AM


ADVERTISERS’ INDEX •

The index of page numbers is provided as a service.


The publisher does not assume any liability for error or omission.
Alimak Group Sweden AB 19
Allseas Group Sa 3

SALES OFFICES Ariel Corp 7


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ENDEAVOR BUSINESS MEDIA
Dril-Quip C4
PETROLEUM GROUP
10300 Town Park Drive, Suite S1000 Eiffage Metal 53
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PHONE +1 713 963 6206 Igus Gmbh 49
FAX +1 713 963 6228
David Davis (Worldwide Sales Manager) Ixblue Inc 59
ddavis@endeavorb2b.com Noia 33

United States • North America Nylacast 21


• Central America Oceaneering. 25
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David Davis ddavis@endeavorb2b.com Offshore Magazine 65
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Silvera Mediarep natural gas liquids into a more easily understandable subject.”
Viale Monza, 24 - 20127 Milano, Italy — Frank H. Richardson, President and CEO,
PHONE +39 (02) 28 46716 • Shell Oil Company, Retired
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Ferruccio Silvera info@silvera.it Natural Gas Liquids: A Nontechnical Guide is a
CHINA • SOUTHEAST ASIA comprehensive overview of NGLs from production
• AUSTRALASIA • JAPAN in the oil patch to consumption in the fuels and
19 Tanglin Road #05-20 petrochemicals industries.
Tanglin Shopping Center
Republic of Singapore 247909 Learn what is behind natural gas liquids:
PHONE +65 9616 8080 •
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Michael Yee yfyee@singnet.com.sg
• How they are transported
FOR ASSISTANCE WITH • How they are consumed in the
MARKETING STRATEGY OR AD fuels and petrochemicals industry
CREATION, PLEASE CONTACT: • Profles of successful NGL companies
Endeavor Business Media
Marketing Solutions
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PHONE +1 713 963 6206 ORDE
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MAY 2020   OFFSHORE | WWW.OFFSHORE-MAG.COM71

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• BEYOND THE HORIZON

Sea change: securing the future of


offshore energy with MPD
CHANGES BROUGHT ABOUT by the coronavirus pandemic superiority and the increased rig marketability that comes with
and the recent oil price collapse have highlighted the need for it, MPD solutions provide an increased level of safety and op-
readily available solutions that further optimize cost and effi- erational performance that enables better red-zone management
ciency, while at the same time minimizing risk and liability in and lesser personnel on board (POB). MPD algorithms and
this volatile global business environment. The innovation culture control systems used in conjunction with real-time remote
that the energy industry has fostered has frequently produced support from subject matter experts augment the operational
and developed solutions appropriate for the times when they experience and knowledge of existing drilling personnel, helping
are needed most, and such is the case for managed pressure address the skilled labor shortage of an industry that has seen
drilling (MPD) technology today. its worst prolonged downturn in a generation. Once assimilated
The offshore energy industry is beginning to broadly realize into an existing drilling rig system, an MPD investment imme-
the economic and environmental benefits of MPD, which lever- diately provides value through early kick detection and control.
ages technology that closes the well in while simultaneously This drastically reduces the risk of loss of well control and helps
allowing for drill pipe rotation to enable quick precise annular safeguard the corporate reputations of the drilling contractor
pressure adjustments while drilling. Originally invented more that has purchased the MPD system, as well as the operator
than 50 years ago, MPD core technologies and solutions have that has utilized the same.
been consistently deployed on and is now prevalent in land For technology service companies, the increased use and
rigs. Offshore operators are also recently and more frequently adoption of MPD technologies provides an opportunity to refine
requiring MPD-ready drilling rigs in their tenders, and current and optimize technical solutions and the commercial models
industry uptake is pointing to a not-too-distant future in which in collaboration with partners. With an increase in volume of
a majority of the drilling rigs offshore will be MPD-equipped. MPD use, the industry stands to achieve and benefit from the
While MPD has proven essential for meeting the challenge of standardization of platforms, processes and procedures as well
tight drilling windows between pore (or hole stability) pressure as provide opportunities for the training and development of
and fracture pressure, there is quickly emerging a more pervasive technology specialists. From a data science and analytics per-
MPD future: as an effective and reliable performance-enhancing spective, this will provide a larger data set of operational expe-
and risk-mitigating solution with significant implications for rience that can be leveraged to develop better iterations of the
operators, drilling contractors and service companies. technology, which in turn will help achieve economies of scale
For operating companies, the positive implications of requir- to sustain the organizations and systems that support it.
ing MPD technology on the drilling rigs they procure are focused And for the energy industry, the implications of increased
on drilling risk mitigation and operational and cost certainty. MPD adoption in the offshore space are a vast reservoir of
Studies have repeatedly shown that a large portion of non-pro- untapped potential. Growth in the adoption of MPD has pro-
ductive time (NPT) events such as kicks, losses, stuck pipe, and duced operational benefits that have flattened the curves of
even sidetracks and lost wells in offshore drilling operations cost and risk and opened new areas and depths to offshore
are due to pressure-related causes. The automation and digi- exploration and development. Among deepwater drilling rigs,
talization advancements inherent in current MPD technologies there has been a marked increase in the use of MPD technologies
provide conventional drilling rigs with better system monitoring and solutions, bringing the adoption rate from zero to ~15%
and pressure control capabilities that keep the time and cost today in the span of a decade since it was first used.
impact of these events to a minimum, helping ensure that the History is replete with countless examples of technology
commercial and technical objectives for the wells are met. Used serving as the linchpin in the engine of growth that has contin-
to its fullest potential, MPD can even be further leveraged to uously spurred the energy industry onwards and upwards.
optimize the well architecture and perform technical feats only Today, MPD technology stands ready to accept that
possible with MPD. These advances can provide further eco- challenge.
nomic and strategic advantages for operators that choose to
wield the technology for their benefit. KEVIN FISHER, VICE PRESIDENT FOR MANAGED PRESSURE DRILLING,
For drilling rig contractors, aside from the technological WEATHERFORD

This page reflects viewpoints on the political, economic, cultural, technological, and environmental issues that shape the future of the petroleum industry.
Offshore Magazine invites you to share your thoughts. Email your Beyond the Horizon manuscript to David Paganie at dpaganie@endeavorb2b.com.

72 WWW.OFFSHORE-MAG.COM | OFFSHORE   MAY 2020

2005OFF69-72_bob.indd 72 4/28/20 11:38 AM


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2005OFFC1-C5.indd 3 4/29/20 11:50 AM


2005OFF_TetraTech 1 4/24/20 4:56 PM
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2005OFFC1-C5.indd 4 4/29/20 11:50 AM


2005OFF_Drip-Quip 1 4/22/20 4:42 PM

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