March/April 2023

WORLD TRENDS FOR OIL, GAS & RENEWABLE ENERGY

TOP 5 PROJECTS TO WATCH IN 2023

Final investment decision expected
this year on five major projects
More projects incorporating
renewable energy, emissions
reduction technologies

PLUS:
ESG FOCUS
Upstream
decarbonization efforts
EASTERN MEDITERRANEAN
Offshore Israel
E&P update
SPECIAL SUPPLEMENT
NOIA
SPECIAL REPORT
Energy transformation
strategies

230304OFFc1-c4.indd 1 3/29/23 3:16 PM

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 MARCH/APRIL 2023

EASTERN MEDITERRANEAN UPDATE

22 Growing international gas demand

spurs interest, activity offshore Israel
Renewable power, port infrastructure also
part of country’s development opportunities

SUBSEA
COVER STORY: TOP FIVE PROJECTS
26 All-electric subsea multiphase
16 Topadvance
5 projects to watch: operators
field development plans
pumping system offers promise
of reduced complexity, cost
Projects now incorporating renewable Full-scale system trials in
energy, emissions reduction technologies Norway later this year

ESG FOCUS

18 Study finds new projects to

be 45% less carbon intensive
compared to 2016
But more E&P players need to incorporate
GHG performance into project design

DECCOMISIONING

30 New statistical data can help pinpoint

pipeline decommissioning costs
Research suggests that average costs range
from $29/ft to $75/ft in shallow water

SUBSEA TIEBACK REVIEW

34 Technology advances the clear

focus at Subsea Tieback 2023
New offshore tools offer
enhanced optimization

FOLLOW US
COVER: Photo courtesy Dreamstime.
com, ID 12074670 © Dmitriybizon FACEBOOK TWITTER LINKEDIN
@OffshoreMagazine @offshoremgzn www.linkedin.com/groups/4542757

MARCH/APRIL 2023 | www.offshore-mag.com OFFSHORE 1

230304OFF01-05_toc.indd 1 3/29/23 3:16 PM

 SPECIAL REPORT:
ENERGY TRANSFORMATION STRATEGIES
48 Execs share their offshore oil and gas
TOP TACTICS

methods for a sustainable future

Industry leaders reveal their main energy
transformation strategies currently
being implemented offshore

50 Offshore renewables and the UK oil

UK REPORT

and gas industry’s energy transition

Challenges and solutions facing
the offshore sector

MARCH/APRIL 2023
52 E&P company puts heavy focus on CCS
EXECUTIVE INSIGHTS

Neptune Energy executive details

its CO2 storage plans

SPECIAL REPORT: NOIA 54 Offshore industry transitions

DECARBONIZATION

36 The future of offshore energy is today

Commentary from the NOIA president
to renewables and carbon
reduction strategies
Bureau Veritas has a positive outlook

38 Energy and innovation meet offshore

Commentary from the NOIA chairman
for the emergence of viable solutions to
reduce the industry’s carbon emissions

40 NOIA officers and board of directors 55 Catapulting CCS action

for climate change
The NOIA officers and the members of the NOIA The use of CCS to reduce emissions from hard-
Executive Committee and the NOIA Board of Directors to-abate sectors must increase dramatically
during the April 2022 through April 2023 term are listed.
56 Theoffshore
roadmap to reducing

42 NOIA membership list

NOIA members are listed by market
function and business activities
methane emissions
Cost-effective, reliable technology exists for
quantifying methane emissions offshore

57 Game-changing technology
TECHNOLOGY

43 The voice of the offshore

NOIA shares its mission statement, vision
and objectives
propelling the energy transition
Innovation is happening and
transformation is sweeping the world,
albeit adoption and scaling is slow
SPECIAL SECTION: FRANCE

44 Eiffage Métal scaling up capacity for 58 Offshore technologies meeting ESG goals
SUSTAINABLE TRANSPORTATION

future floating offshore wind parks A sampling of the latest trends

in vessel technology, emissions
Company is supporting two pioneering floating monitoring and alternative fuels
offshore wind schemes in the Mediterranean Sea

60 Software innovations improving

DIGITALIZATION TRENDS

offshore efficiencies
A selection of the recent system developments
DEPARTMENTS for the offshore energy sector

4 ONLINE
6 COMMENT
12 SUBSEA SYSTEMS
14 RIGS & VESSELS 62 Powering floating offshore oil and
CASE STUDY

7 DATA 63 ADVERTISERS’ INDEX gas operations is no easy task

BW Offshore utilizes IFS software
8 GLOBAL E&P 64 BEYOND THE HORIZON to optimize operational efficiency,
uptime and maintenance

2 OFFSHORE www.offshore-mag.com | MARCH/APRIL 2023

230304OFF01-05_toc.indd 2 3/29/23 3:16 PM

 Connecting What’s Needed with What’s Next™

Visit us at OTC
Booth 1263

SUSTAINABLE SOLUTIONS
We’re engineering solutions for the
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Copyright © 2023 Oceaneering International, Inc. All rights reserved.

230304OFF01-05_toc.indd
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PM
 OFFSHORE-MAG.COM LATEST NEWS Vol. 83, No. 2

The latest news is posted daily for the offshore energy industry covering technology, companies, personnel moves, and products. GROUP PUBLISHER Diana Smith
dsmith@endeavorb2b.com
CHIEF EDITOR/CONFERENCES EDITORIAL DIRECTOR
VIDEOS WWW.OFFSHORE-MAG.COM/VIDEOS ON-DEMAND WEBINARS David Paganie
WWW.OFFSHORE-MAG.COM/WEBCASTS dpaganie@endeavorb2b.com
MANAGING EDITOR Bruce A. Beaubouef
Floating production outlook: 2023-2027 bbeaubouef@endeavorb2b.com
The floating production market is gaining EDITOR-EUROPE Jeremy Beckman
momentum as demand continues for jbeckman@endeavorb2b.com
EDITOR and DIRECTOR OF
reliable and low-carbon-emitting sources of SPECIAL REPORTS Ariana Hurtado
oil and natural gas production. This uptake ahurtado@endeavorb2b.com
is being driven by new technologies that POSTER EDITOR E. Kurt Albaugh, P.E.
Kurt.albaugh@yahoo.com
are improving the financial returns and
Top 5 projects to watch in 2023 ART DIRECTOR Meg Fuschetti
carbon intensity of floating production PRODUCTION MANAGER Sam Schulenberg
WWW.OFFSHORE-MAG.COM/14290806 systems. Industry expert David Boggs, sschulenberg@endeavorb2b.com
Deepsea mining – opportunities managing director of Energy Maritime AD SERVICE MANAGER Shirley Gamboa
Associates, discussed recent industry sgamboa@endeavorb2b.com
and challenges AUDIENCE DEVELOPMENT MANAGER Emily Martin
WWW.OFFSHORE-MAG.COM/14289625 trends, updates on projects under
construction and a forecast for new orders.
Offshore wind energy and the WWW.OFFSHORE-MAG.COM/20232027
problem of global stilling
WWW.OFFSHORE-MAG.COM/14289124 Eastern Mediterranean endeavorbusinessmedia.com
E&P: field development Corporate Officers
opportunities and challenges CEO Chris Ferrell
The Eastern Mediterranean basin is home PRESIDENT June Griffin
to about 800 Bcm of natural gas reserves CFO Mark Zadell
COO Patrick Raines
offshore Egypt, Israel and Cyprus that can
COO Reggie Lawrence
be exported. But producers, operators CHIEF ADMINISTRATIVE AND LEGAL OFFICER
and host nations now confront several Tracy Kane
field development options that will need EVP INDUSTRIAL GROUP Mike Christian
to be advanced to reach new markets. Offshore Customer Service:
Hybrid power – the promise Options include boosting regional LNG P.O. Box 3257, Northbrook, IL 60065-3257
of offshore wind and solar Tel: (847) 559-7598
export capabilities, new offshore pipeline Email: OFF@omeda.com
WWW.OFFSHORE-MAG.COM/14286876
systems and possibly one FLNG vessel. CUSTOM PUBLISHING Roy Markum
Industry turns to FPU redeployment These potential projects face a diverse mix rmarkum@endeavorb2b.com
Tel: (713) 963-6220
to shorten cycle times of geopolitical, technical and/or commercial
REPRINT SALES
WWW.OFFSHORE-MAG.COM/14284452 challenges. This webinar offers viewers Please contact your sales associate.
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Offshore hydrogen – proposed field development options. 2688-3295 online) is published bi-monthly in Jan/Feb, Mar/Apr, May/
opportunities and challenges WWW.OFFSHORE-MAG.COM/14287561
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2022 Worldwide Survey of
Printed in the USA. Copyright 2023 Endeavor Business Media, LLC. All
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4 OFFSHORE www.offshore-mag.com | MARCH/APRIL 2023

230304OFF01-05_toc.indd 4 3/29/23 3:16 PM

 The Center for Offshore Safety (COS)
supports companies in offshore natural gas
and oil operations to develop, implement
and improve their Safety and Environmental
Management Systems.

Join the COS mission to

improve offshore operations:
www.CenterForOffshoreSafety.org
info@centerforoffshoresafety.org

Copyright 2023 – Center for Offshore Safety, all rights reserved. Center for Offshore Safety and the COS logo are either trademarks or registered trademarks of
the Center for Offshore Safety in the United States and/or other countries. API Global Marketing and Communications: 2023-056 | 03.20 | PDF

230304OFF01-05_toc.indd
2304OFF_API.indd 1 5 3/29/23
3/22/23 3:16
1:46 PM
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 COMMENT
Oil, gas operators advance
decarbonization strategies
David Paganie
CHIEF EDITOR
O
il and gas operators have been progressing
strategies to reduce the greenhouse gas (GHG)
emissions that are under their direct control.
There certainly has been a sense of urgency
in the past few years, and data suggests that those
efforts are having a positive impact. The gap, per-
haps, is in the tracking and reduction of indirect
emissions (scope 3), as that requires a comprehen-
sive evaluation of full value chains to understand
the impact on operations.
In the meantime, most of the operators in the
industry have outlined strategies to reduce direct
GHG emissions (scopes 1 and 2). The approach-
es vary by company and include carbon, cap-
ture, use, and storage; electrifying assets via
power from shore or offshore wind turbines;
flare optimization technology; zero-leak valve
management; fugitive emission reduction; and
investments in green and blue hydrogen and
renewable energy.
A common metric used to compare and screen
opportunities based on their carbon competi-
tiveness is GHG emissions emitted per amount of
hydrocarbon produced. This metric is referred to
as GHG intensity. It reflects the overall emissions
from the development over the life of the asset or
field. For new projects, the metric is evaluated at
different phases of a stage-gated process to deter-
mine if it will meet low-carbon objectives.
To respond to articles in Offshore, or to offer articles for publication, contact the editor at dpaganie@endeavorb2b.com.
6 OFFSHORE
230304OFF06_comment.indd 6
Independent Project Analysis (IPA) reviewed
data from more than 40 ongoing projects (pre- and
post-FID but not operational yet) and found that
there is a trend in the improvement of the carbon
competitiveness of projects. The projects in the
planning phase that are expected to be authorized
in 2023 are, on average, 45% less carbon intensive
compared to projects authorized in 2016, accord-
ing to the study. IPA suggests that this emerging
trend highlights the growing integration of GHG
intensity improvement through the early defini-
tion phases of project development.
The research and consulting company’s study
finds that the GHG performance of the opportunity
is driven primarily by the hydrocarbon type (ratio of
gas and oil produced), reservoir and fluid character-
istics, and concept selected to develop the reservoir.
IPA’s full review of its GHG performance evalu-
ations begins on page 18.
This focus on the integration of decarboniza-
tion technologies and techniques is also reflected
in Offshore’s Top 5 projects to watch this year. The
selection criteria included the application of renew-
able energy components or emissions reductions
technologies. Bruce Beaubouef, Offshore managing
editor, reviews the top projects starting on page 16.
Operators are looking to decarbonize with late-
life assets as well. This is the strategy of independent
Neptune Energy. The operator’s approach to decar-
bonization is to extend the life of its offshore assets
and repurpose them to facilitate CO2 storage and
hydrogen production by using domestic, lower car-
bon-intensive gas or wind power. Neptune suggests
that by extending field life, electrification could
become more economic and help to decarbonize
existing production. Ariana Hurtado, Offshore editor
and director of special reports, spoke with Neptune
and other operators for an update on decarboniza-
tion strategies. The coverage begins on page 48.
www.offshore-mag.com | MARCH/APRIL 2023
3/29/23 3:29 PM
 DATA
Only 39 marketed Marketed offshore rigs available for contracting
rigs available 800
The number of marketed offshore rigs 710
700 664
available for contracting continues to shrink
as operators lock up rigs for their programs. 600 551
Out of 551 marketed jackups, semisubs 500
and drillships, 455 are on contract as of
mid-March, and another 80 have future 400
assignments lined up, leaving 39 marketed 300
rigs without current or future work booked.
Operators that decide to turn to cold- 200
119
stacked rigs for their programs will need 100
39
to allow sufficient time for reactivations.
0
Any prospective jobs would need to offer ply n ply d d act act ed cts
up uc
tio up ete ete ntr ntr act tra
enough backlog and earnings potential to tal s str eds mark Mark co r co ontr con
o n r t n e c
T rc
o
live No so nd tur
e No
justify the reactivation costs.—Esgian de De Rig tu Fu
Un No Source: Esgian

$214B of greenfield Offshore investments by region, 2023

investments expected by 2025 Middle East
South America
The offshore oil and gas sector is set for Western Europe
the highest growth in a decade in the next North America
West Africa
two years, with $214 billion of new project South East Asia
investments lined up. Annual greenfield East Asia
Australia
capex will break the $100 billion threshold South Asia
in 2023 and 2024—the first breach for two Central Asia
Russia
straight years since 2012 and 2013. Offshore North Africa
East Africa
activity is expected to account for 68% of South Africa
all sanctioned conventional hydrocarbons Southern Europe
Unknown
in 2023 and 2024, up from 40% from 2015 to Eastern Europe
2018. In terms of total project count, offshore Carribean
Oceania
developments will make up almost half of all Central America
sanctioned projects in the next two years. 0 5 10 15 20 25 30
—Rystad Energy USD Billion
Source: Rystad Energy’s Service Market Solution, March 2023

Global increase in Market Attractiveness Index for Floating Wind

offshore wind leases
UK 68
More countries plan to stage their first
offshore wind lease rounds in 2023. Project Norway 57
development and FIDs will slow offshore
wind expansion in the short term. However, Korea 53

the industry is expected to make progress

US 49
over the next few years, resulting in 269
GW in 2030 for projects installed or under Japan 48 Potential

construction. Countries preparing for first Ambition

France Context
offshore wind lease rounds include Norway, 46
Deployed
Lithuania, Uruguay, Portugal, Australia,
Italy 37 Pipeline
Brazil, Colombia, Estonia and Ireland. Many Regulatory
have drawn up terms based on models Spain Supply Chain and
37 Infrastructure
applied for recent rounds in the UK, US and
Denmark.—4C Offshore, a TGS company Portugal 30
Source: TGS / 4C Offshore

MARCH/APRIL 2023 | www.offshore-mag.com OFFSHORE 7

230304OFF07_data.indd 7 3/29/23 3:28 PM

 GLOBAL E&P
NORTH AMERICA
The Bureau of Ocean Energy Management aims to stage Gulf
of Mexico oil and gas Lease Sale 261 in September. This would
offer around 13,620 blocks spanning 73.4 million acres across the
Western Central and Eastern planning areas of the US Outer Con-
tinental Shelf. Companies would need to submit bids the day prior
to the event.
Shell has started production from the Vito semisubmersible plat-
form in the Mississippi Canyon, 10 mi (16 km) south of the com-
pany’s Mars TLP. The four-column facility, moored in over 4,000
ft (1,220 m) of water will at peak deliver 100,000 boe/d via eight
subsea wells with gas lift. Production is exported through Shell
Midstream’s Mars Pipeline system.
Williams has agreed to provide offshore gas gathering and oil
transportation services for Chevron’s Ballymore development,
a three-well subsea tieback to the Blind Faith platform, 160 mi
south-east of New Orleans. Williams will use existing connections
to Blind Faith, which is designed to receive 75,000 b/d of crude.
Eni has discovered oil in the Yatzil prospect 65 km offshore in Mex-
ico’s Sureste basin. The semisub Valaris DPS-5 drilled the Yatzil-1
EXP well in Block 7 in 284 m of water, encountering good qual-
ity oil in Upper Miocene sequences. Initial analysis suggests an
in-place resource of around 200 MMboe.
Repsol has commissioned DORIS to perform scoping studies for
the development of two discoveries in Mexico’s Block 29, 88 km
from the state of Tabasco. Chinwol and Polok are 16 km apart, in
water depths ranging from 460-600 m. DORIS’ conceptual engi-
neering work relates to the subsea production/SURF systems.
SOUTH AMERICA
TotalEnergies and partner APA Corp. continue appraisal drilling in
Block 58 offshore Suriname, with two wells recently in progress
on the Krabdagu discovery. Earlier, operations finished on their
second appraisal well on Sapakura South, now estimated to con-
tain more than 200 MMbbl in place.
Petrobras and Shell signed a memorandum of understanding at
CERA Week in Houston last month concerning a potential five-
year collaboration. This could include jointly assessing upstream
opportunities, and exploration both in and beyond the Brazilian
presalt, notably the Equatorial Margin.
ASIA-PACIFIC
CNOOC has discovered light oil with the BZ26-6-2 well on the
Bozhong 26-2 field in the southern Bohai Sea off eastern China.
8 OFFSHORE
230304OFF08-11_glob.indd 8
Jeremy Beckman london
CNOOC’s recent
Bozhong 26-2 oil
discovery in the Bohai
Sea is its third in the
area. COURTESY CNOOC
This was the company’s third oilfield discovery in the area follow-
ing Kenli 6-1 and Kenli 10-2, the main oil-bearing play being the
Archean buried hill.
Malaysia and Marine Heavy Engineering (MMHE) has an EPCI
contract from Carigali-PTTEP Operating Company for Phase 6
of the JDA offshore project in the Malaysia-Thailand Joint Devel-
opment Area. The scope includes construction of five wellhead
platforms, each weighing around 2,000 metric tons, for installa-
tion in 55-65 m of water in the B-17-01 area of the southern Gulf
of Thailand; and five subsea pipelines and tie-ins to host facilities.
Petronas has opened the Malaysia Bid Round 2023, with 10 explo-
ration blocks offered in the producing Malay, Sarawak and Sabah
basins and in the newly opened Penyu basin. Also on offer are two
shallow-water clusters close to production hubs: Chenang DNO
off Peninsular Malaysia and Bambazon DRO.
WEST AFRICA
Genel Energy has signed an eight-year exploration agreement
for the Lagzira (formerly Sidi Moussa) block offshore Morocco
with state-owned ONHYM. Lagzira is in 200-1,200 m water depth:
Genel’s SM-1 well on the concession in 2014 recovered oil from
Jurassic reservoirs, and the company has since identified new
plays and multiple 100-700-MMbbl prospects based on broad-
band 3D seismic acquired in 2018. It aims to bring in a partner
to co-fund drilling and testing of one of the stand-out prospects.
BP and its co-venturers will assess a gravity-based structure (GBS)
as the basis for the Greater Tortue Ahymeyim (GTA) Phase 2 expan-
sion project offshore Mauritania and Senegal. They are targeting
LNG production capacity in the range 2.5-3 MMt/yr. The GBS will
have a static connection to the seabed and will provide LNG stor-
age and a foundation for liquefaction facilities, with new wells and
subsea equipment expanding the existing infrastructure, 120 km
offshore and in 2,850 m of water.
Equatorial Guinea’s government has awarded production-sharing
contracts for three offshore blocks. Panoro Energy will operate
Block EG-01 in partnership with Kosmos Energy and state-owned
GEPetrol: main hydrocarbon plays are Eocene sands and Upper
www.offshore-mag.com | MARCH/APRIL 2023
3/29/23 3:16 PM
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 Cretaceous turbidites with potential for
tiebacks to nearby facilities at the Ceiba
and Okume fields. Africa Oil signed PSCs
for offshore blocks EG-18 and EG-31, and
sees potential for gas discoveries in shal-
low water, with production potentially
sent to the Punta Europa LNG terminal on
Bioko Island.
Azule Energy, the joint venture between bp
and Eni in Angola, has issued subsea engi-
neering contracts for the Agogo Integrated
West Hub development in offshore block
15/06. Baker Hughes will provide the pro-
duction system, including 23 of the com-
pany’s standard subsea trees and 11 Aptara
manifolds. TechnipFMC will supply jumpers,
flowlines, rises and ancillaries, while Aker
Solutions will manufacture 36 km of dynam-
ic and static production control umbilicals
in Moss, Norway. Subsea 7 will fabricate
associated structures in Lobito, also install-
ing the umbilicals and flexible pipes in 1,700
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the FPSO and perform operations/mainte-
nance following start-up.
Shell and partners QatarEnergy and
NAMCOR have continued their run of
deepwater drilling successes in the
Orange basin off Namibia, proving light
oil with the Jonker-1X well in Block 2913A.
TotalEnergies and its co-venturers should
by now have started their second drilling
campaign in the same basin, starting with
an appraisal well and DST on last year’s
Venus oil discovery.
NORTHWEST EUROPE
Equinor has achieved two successive
commercial discoveries close to its Troll
production complex in the Norwegian
North Sea. Rover Sor and Heisenberg, in
water depths of 348-368 m, could collec-
tively hold 41-131 MMboe recoverable. The
company and its partners are working on
a coordinated development (Ringvei Vest)
of these and six other finds in the area
dating back to 2019, and thought to con-
tain potentially up to 350 Mboe.
In the UK sector Equinor has agreed to
pay Suncor Energy $850 million for its
British E&P subsidiary. The transaction
would give Equinor a near-30% interest
in Buzzard in the central North Sea, one
of the UK’s largest producing oilfields;
and an additional 40% in the deepwater
Rosebank oil and gas development west
of Shetland, where the company and part-
ner Ithaca are targeting FID this year.
Shell’s recent gas/light oil discovery on
the Pensacola prospect, drilled by the
jackup Noble Resilient, has opened a
new Zechstein carbonate play, accord-
ing to partner Deltic Energy. Initial analy-
sis indicates 302 bcf recoverable.
Find out more at
arielcorp.com/ultra-low
3/29/23 11:22
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 MIDDLE EAST
Energean has produced gas from its shal-
low-water North El Amriya and North Idku
development in the Gulf of Suez offshore
Egypt, part of a package that came with
the company’s acquisition of Italy’s Edison.
Four subsea wells tied back to the North
Abu Qir PIII platform will eventually pro-
duce up to 20,000 boe/d.
fields in Libya’s offshore contractual area
D. They plan to commission two new plat-
forms that will be connected to treatment
facilities at the onshore Mellitah com-
plex, and a new carbon capture and stor-
age facility nearby to reduce the project’s
carbon footprint. Production should begin
in 2026, rising to a peak of 750 MMcf/d.
Allseas will deploy its Solitaire and Oce-
anic vessels for phase one of the Chev-
ron-operated Tamar gasfield expansion
project offshore Israel. They will lay
around 150 km of 20-in. pipeline from
the field to the existing Tamar platforms,
along with umbilicals and various subsea
structures. ●

TotalEnergies has agreed to acquire CEP-

SA’s upstream interests in the UAE. These
MEET US AT OTC
comprise 20% of the offshore concessions
HOUSTON TX #4009
Satah Al Razboot, Umm Lulu, Bin Nasher
and Al Bateel, operated by ADNOC Off-
shore; and a 12.88% indirect interest in the
Mubarraz concession, which contains four
producing offshore fields.

EAST AFRICA
Tanzania is reportedly looking to achieve
FID for a new LNG terminal in the south-
east Lindi region in2025. The Energy Min-
istry is said to have completed negotiations
on the construction with Equinor and Shell,
operators of three offshore blocks contain-
ing over 36 tcf of discovered gas.

CASPIAN SEA
The semisub Heydar Aliev has spud the
SDX-8 exploration well for bp on the
eastern flank of the Shah Deniz gasfield
in the Azerbaijani sector. Operations to
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 SUBSEA SYSTEMS
Subsea systems market
witnessing steady growth
USD Analytics recently reported that
the subsea systems market is project-
ed to reach $15.3 billion by year-end
2030. There are several key drivers set-
ting the sector on that projected path.
“Increased demand for oil and gas,
in particular in developing countries, is
encouraging the deep offshore explo-
ration activities, which requires effi-
cient subsea system components,”
CH. Dakshayani Ram, a senior busi-
ness analyst with USD Analytics, told
Offshore. “Planned exploration activ-
ities in the US Gulf of Mexico, Brazil,
20 Subsea Market Size
Market Size (US$ Billion)
Y-o-Y Growth
15
10
5 tems that can handle processing
14.86 15.31 15.76
0 2.7
2021 2022 2023
China, the UK, Norway, Africa, Asia and
other markets present strong support
for offshore oil and gas production.”
USD Analytics reported that Qatar
Petroleum, Shell, Petrobras, Total,
Ex xon Mobil, Equinor, Chev ron,
Gazprom, ADNOC and CNPC are
among the companies investing in
offshore oil and gas upstream projects.
Technology investments
According to Ram, leading subsea
systems manufacturers are making
investments to expand into these
worldwide exploration activities.
She added that new product launch-
es driven by technical advancements
remain a major market trend.
“Technological advances in subsea
robotics, sensors, communication sys-
tems, launch of environment-friendly
systems that capture and store carbon
12 OFFSHORE
230304OFF12-13_sss.indd 12
Ariana Hurtado, HOUSTON
dioxide emissions, and ongoing invest- “Such an optimistic oil and gas
ments in R&D support the market out- demand scenario is encouraging lead-
look,” Ram continued. ing companies to invest in services
Many companies are investing in such as installation, asset manage-
R&D activities in subsea technolo- ment, product optimization, inspec-
gies in areas of unmanned underwa- tion, maintenance, repair services and
ter vehicles, subsea communications others,” Ram said.
and sensor networks, robotics and
subsea controls. Trending subsea advances
“Companies will continue to invest The most innovative subsea system
in R&D to develop new technolo- technology advances in the market, in
gies that improve efficiency, safety Ram’s opinion, are surrounding subsea
and reliability for their clients,” she robotics. This includes ROVs and AUVs,
explained. “Further, R&D efforts are subsea drones and robotic arms that
can operate in harsh environments
3.3
Year-on-Year Growth Rate (%)
and perform complex tasks.
3.2 In addition, she noted other hot
commodities on the market include
3.1
sensors and monitoring systems
3.0 with real-time data transmission
2.9 and alerts as well as processing sys-
2.8 and storage of oil and gas directly at
16.23 16.72 17.24 17.77 18.33 18.92 19.55
the wellhead.
2024 2025 2026 2027 2028 2029 2030
She added that components focus-
COURTESY USD ANALYTICS
ing on subsea systems for EOR con-
largely based on the area of deploy- tinue to be on the list of all major
ment. For instance, companies in the R&D companies.
Gulf of Mexico, West Africa and other
regions emphasize improving oper- SURF segment
ating capabilities of their systems USD Analytics recently reported that
to support higher pressure wells. the SURF segment generated the high-
Further, cost reduction is among the est revenue in the subsea industry in
key focus areas for oil and gas explo- 2022. So, what can be expected in
ration companies in Brazil, Africa, Asia 2023 and beyond?
and other markets.” “SURF is witnessing steady growth
Mature fields, oil and gas demand in demand [and] presenting strong
and a high oil price environment sup- growth opportunities. The segment
port investment in subsea equipment accounted for 41.6% market share in
and services. “The high crude oil price 2022,” Ram said. “The scenario is likely
scenario is among the main market to remain similar in 2023 as well, amid
growth drivers in the global subsea optimistic market conditions. With
production market,” Ram added. increasing complexity in subsea gath-
The EIA estimates the global liquid ering and pipeline systems in deep
fuels consumption to increase by 1.1 and ultradeep fields, the demand for
MMbbl/d in 2023 and by 1.8 MMbbl/d efficient subsea umbilicals, risers and
in 2024, and the Brent spot price will flowlines equipment inspections is
average $85/bbl in the first half of 2023. likely to increase steadily.” ●
www.offshore-mag.com | MARCH/APRIL 2023
3/29/23 3:16 PM
 TECHNOLOGY
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 VESSELS/RIGS
Rig market tightens as inventory becomes lean
T
he rig market is showing signs of tightening as dayrates
remain high, scrapping has declined precipitously, and
some operators are even pausing their drilling cam-
paigns as inventories become lean.
The industry is now once again amid a rig market upcy-
cle that has been ongoing since the latter half of 2021, with
higher demand and utilization now being recorded in all
three offshore drilling rig segments.
Noble Corp. recently reported that its marketed fleet of
16 floating drilling rigs was 91% booked during 4Q 2022.
This included seven ultradeepwater rigs added following
the merger with Maersk Drilling.
Tier 1 drillships area commanding increased day rates,
the company said, currently in the low to mid $400,000s
per day range. And since early November, Noble has secured
24 months of additional work for four sixth-generation
and seventh-generation drillships at an average rate above
$420,000 per day.
As for the company’s 13 jackups, utilization was 85% in
the fourth quarter, and included 10 that were part of the
Maersk fleet. Nine of the 13 jackups are contracted, with an
overall $1 billion jackup backlog that is heavily weighted to
the commitments of Noble Integrator and Noble Invincible
under the Aker BP alliance in Norwegian waters.
Meanwhile, offshore rig scrapping is at its lowest in
years as the recovery intensifies. As reported by Teresa
Wilkie of Westwood Global Energy Group, no drillships
were removed from the active fleet in 2022, while just nine
jackups and six semis were retired, the majority of which
were over 30 years old.
“This indicates that rig owners are hanging on to vintage
or cold-stacked tonnage, as is generally the case in a rising
rig demand and day rate market,” Wilkie wrote. “However,
the available supply of active (non-cold stacked) rigs, espe-
cially jackups and drillships, is shrinking fast and there has
already been word that several rigs, which have been idle for
multiple years, are being bid into tenders where rig owners
do not have any active rigs to bid.” Wilkie also said that “it
is understood that a driller may now have to wait as long
as 18 months for a reactivation to be completed these days.”
As the supply/demand balance tightens, the reactivation
of rigs has been on the rise with approximately 25 jackups,
three semis and nine drillships brought back to life since
2021, according to Westwood RigLogix.
The level of newbuilds being delivered from shipyards
has not increased to the same level witnessed during the
short-lived 2019 recovery period. Most of the remaining
stranded newbuild rigs available, of which there are 22
jackups, 15 drillships and eight semis, are owned by the
14 OFFSHORE
230304OFF14-15_vess.indd 14
Bruce Beaubouef houston
shipyards “and drilling contractors continue to be very cau-
tious when it comes to purchasing such a rig,” said Wilkie.
“However, 2023 could be the year the tide turns on this,
especially if the level of demand continues to improve.” In
the last quarter of 2022, Transocean announced that it had
signed a purchase agreement as part of a joint venture for
the seventh-generation ex-West Aquila drillship for $200
million from the Daewoo shipyard. Meanwhile, Saipem con-
PHOTO 9074102 © TRONDUR | DREAMSTIME.COM
firmed it had exercised its option to buy the seventh-gener-
ation Santorini drillship (originally ordered by Ocean Rig),
which it had been bare-boat chartering from Samsung
Heavy Industries since 2021. “Meanwhile, it’s understood
that various drilling contractors are eyeing the remaining
drillships left in yards,” Wilkie added.
In fact, the growing tightness of the rig market may
even be leading to a short-term pause in drilling contract-
ing activity, according to recent analysis from Evercore
ISI. The firm recently reported that drilling contracting
activity had slowed in March with only a few contracts
announced halfway through the month. This follows a busy
February where five drillships and four jackups secured
new multi-year terms.
With all available sixth and seventh-generation drill-
ships spoken for and only eight floaters rolling off contract
over the next few months, “contracting activity is likely
to remain limited in the near term,” the firm comment-
ed. “Meanwhile we count 14 cold stacked and 12 newbuild
drillships available, of which seven are scheduled [to be]
delivered this year,” Evercore said in its latest Offshore
Rig Market Snapshot. This includes the 99% finished sev-
enth-generation CAN-DO, the lone Singapore-based drillship
transferred to Rigco Holding Pte Ltd following the merger
of Keppel and Sembcorp Marine.
www.offshore-mag.com | MARCH/APRIL 2023
3/29/23 3:16 PM
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 TOP 5 PROJECTS
COVER STORY
TOP 5 PROJECTS TO WATCH:
operators advance field
development plans
Projects now incorporating
renewable energy, emissions
reduction technologies
Bruce Beaubouef, MANAGING EDITOR
B
uoyed by high prices and rising
energy demand, offshore opera-
tors and international oil com-
panies are advancing plans for
field development projects, and
2023 looks to be a busy year for off-
shore construction projects.
With that in mind, the editors of
Offshore have compiled the following
Top 5 field development projects to
keep an eye on this year.
The projects were selected pri-
marily on the basis of an expected
or upcoming FID, but other param-
eters included notable aspects such
16 OFFSHORE
230304OFF16-17_top.indd 16
as size of reserves; infrastructure
scale and scope; unique milestones
such as first deepwater production;
or inclusion of renewable energy
components or emissions reductions
technologies.
Uaru project, offshore Guyana
ExxonMobil’s Uaru project is target-
ing more than 1.3 billion barrels of oil,
making it the largest ever project to
date, offshore Guyana, by cost and
volume of resources to be produced.
The project, expected to cost
$12.7-billion, will tap into the Uaru,
Mako and Snoek fields in the eastern
portion of the Stabroek Block. This is
the first time the group will tie three
fields into a single project.
The project calls for 40-76 develop-
ment wells; related subsea umbilicals,
risers, and flowlines; all tying into an
FPSO vessel. The proposed FPSO vessel
www.offshore-mag.com | MARCH/APRIL 2023
Equinor plans to
redeploy the Petrojarl
Knarr FPSO on its
Rosebank project to
reduce costs and
cycle time. COURTESY
ALTERA INFRASTRUCTURE
will be a newbuild facility with dou-
ble-hull protection.
The oil production rate is set at
250,000 barrels per day, but the FPSO’s
basic design has an upper oil produc-
tion limit of 263,000 b/d, and the pro-
duction rate could be revised upward.
The project is expected to produce
crude for at least 20 years, starting
late 2026/early 2027.
As of press time, a final investment
decision was expected within 1Q 2023.
Trion project, Gulf of Mexico
The Trion project, developed by
Woodside Energy in partnership with
Pemex, is a major greenfield develop-
ment that would represent the first oil
production from Mexico’s deepwater
area in the Gulf of Mexico.
The Trion development scheme
calls for extensive subsea well facil-
ities, a semisubmersible floating pro-
duction unit, a floating storage and
offloading vessel, and a 130-km gas
lateral pipeline.
Late last year, the partners issued
competitive tenders for drilling rig,
subsea equipment and installation
scopes for the subsea facilities, float-
ing production unit (semi FPU), and the
floating storage and offloading vessel.
3/29/23 3:16 PM
 Woodside Energy has said that it
will make a final investment decision
on the Trion project this year.
Rosebank project, North Sea
Equinor is expected to make the FID
on its Rosebank field development
project sometime this year. Plans sug-
gest that at peak, the field—around
81 miles (130 km) northwest of the
Shetland Islands in 3,500 ft water
depth—could produce 69,000 bbl/d
of oil, equivalent to 8% of the UK’s
entire output between 2026 and 2030.
It would also deliver about 44 MMcf/d
of gas in its first 10 years.
To reduce costs and cycle time,
Equinor plans to redeploy an FPSO
from Shell’s recently shut down
Knarr field in the Norwegian sector.
Development plans for Rosebank call
for the oil to be offloaded into tankers
from the FPSO, while part of the pro-
duced gas will be utilized for power
generation in the FPSO. The remainder
of the gas will then be exported to the
Shetland Islands through a new pipe-
line that will connect to bp’s existing
West of Shetland pipeline.
The Petrojarl Knarr FPSO will
undergo life extension work as well
ExxonMobil’s Uaru field development will be the largest ever project to date offshore
Guyana, by cost and volume of resources to be produced. COURTESY EXXONMOBIL
MARCH/APRIL 2023 | www.offshore-mag.com
230304OFF16-17_top.indd 17
as modifications to enhance energy
efficiency for electrification. The
work will be performed via joint
venture with Drydocks World-Dubai,
and the upgrade will take place in
Dubai, UAE.
Perhaps most notably, Rosebank
could be among the first UK offshore
field developments powered from
the start by renewable electricity,
with reduced reliance on gas-pow-
ered generators.
According to OEUK, options to
power the development include off-
shore windfarms and running power
cables to shore. The project could help
establish the infrastructure necessary
for electrification of all oil and gas
operations west of Shetland. First oil
is expected in 2026.
Dorado project, Australia
P roject developers Sa nt os a nd
Carnarvon Energy had planned to
make an final investment decision on
the Dorado project offshore Australia
last year. In February, Australian regu-
lator NOPSEMA accepted Santos’ pro-
posal for the Dorado field development
project, which is located in the Bedout
basin offshore Western Australia.
Santos plans a phased project, ini-
tially focused on recovery of liquids
with gas re-injection followed by
development and export of the gas to
the Western Australian domestic and
LNG markets.
The Dorado phase 1 development
plan includes multiple production
and injection wells, and a wellhead
platform supplying an FPSO. Other
discoveries in the area such as last
year’s Pavo would be included within
the area covered by the project propos-
al to sustain production through the
offshore facilities.
The project developers have said
that FEED studies are nearly com-
plete, but they decided to delay issu-
ance of the FID last year amidst rising
costs and growing supply chain issues.
But with the preliminary engineering
work nearly complete, Dorado could
get the FID anytime this year.
Cambo project, North Sea
A final investment decision is also
expected to be issued for Ithaca Energy’s
Cambo field sometime this year.
The Cambo field, which has seen
multiple operators over the past few
years, is located off the Shetland
Islands in the UK North Sea in approx-
imately 1,100-m waters. The offshore
field is estimated to contain approxi-
mately 800 million barrels of recover-
able oil reserves.
Plans call for the Cambo field to be
developed in two phases, with multi-
ple wells tied back to an FPSO. Crude
oil will be offloaded into tankers and
the gas will be exported through the
West of Shetland Pipeline.
Plans call for the FPSO to have a cir-
cular hull design without turret, based
on the Sevan cylindrical FPSO design.
Modern equipment designed to oper-
ate without the need for routine flar-
ing or venting of hydrocarbons will
be used to reduce emissions. When
production commences, the field is
expected to produce less than half of
the amount of CO2 for each barrel pro-
duced than the average UK field. The
development will be built electrifica-
tion-ready. ●
OFFSHORE 17
3/29/23 3:16 PM
 ESG FOCUS

PHOTO 102800857 © PICHIT BOONHUAD | DREAMSTIME.COM

Study finds new projects to
be 45% less carbon intensive
compared to 2016
But more E&P players need to has to increase significantly if we are to meet our climate
goals. On the other hand, the global capex for upstream oil
incorporate GHG performance and gas (O&G) was $380 billion in the same year. Most net-ze-
ro frameworks suggest that this number has to decrease,
into project design with the speed of decrease varying between frameworks.
However quickly this capex decreases, a significant amount
Adi Akheramka, INDEPENDENT PROJECT ANALYSIS of money will be spent on O&G in the next few decades. The
average life of field of projects in IPA’s hydrocarbon produc-

T
he E&P industry has made significant progress in decar-
bonization over the past few years. This can be observed
by highlighting some of the emerging decarbonization
trends, outcomes and practices of ongoing and recently
completed projects.
That said, there are still some main gaps that the industry
needs to address. These observations have been made based
on IPA’s greenhouse gas (GHG) performance evaluations of
industry projects, and were presented at the Upstream
Industry Benchmarking Consortium (UIBC) meeting in
November 2022.
Current state of decarbonization
In 2021, the global capex spent on renewable energy was
$361 billion. The common consensus is that this investment
tion database is 22 years. This means that the opportunities
we are progressing now and the design choices we make
today will most likely be in place producing hydrocarbons
into the mid-2040s. Therefore, in addition to allocating more
funds to scale up renewable energy, it is critical that we also
ensure that the O&G assets in development now are being
advanced with a low-carbon mindset.
Measuring carbon competitiveness
To help business sponsors and project teams make effective
low-carbon choices, IPA has been evaluating the carbon
competitiveness of projects for the past three years. IPA’s
Greenhouse Gas Performance Assessment suite of metrics
assesses onshore and offshore project outcomes, as well
as the practices that enable competitive performance. The

18 OFFSHORE www.offshore-mag.com | MARCH/APRIL 2023

230304OFF18-21_ipa.indd 18 3/29/23 3:16 PM

 GHG Intensity performance metric is evaluated at differ- opportunities we progress as an industry are improving in
ent stages in the stage-gated process based on the projects’ their carbon competitiveness. Based on the data collected
production and injection profiles, their reservoir and fluid by IPA from 40+ ongoing projects (projects pre- and post-
characteristics, design- and power-related choices, and a FID but not operational yet), we do see a definite trend sug-
few other project-specific characteristics. At the same time, gesting an improvement. Figure 1 highlights the Estimate
we assess the project’s readiness to deliver a competitive GHG Intensity (project teams’ estimates of their life of field
low-carbon project and highlight any gaps in practices emissions) improving for projects based on their authoriza-
that need to be addressed. All of these GHG Performance tion years. Projects in the planning phase now and expected
Assessment tools and frameworks were developed under to be authorized in 2023 are, on average, 45% less carbon
the guidance of industry subject matter experts (SMEs) via intensive compared to projects authorized in 2016.
the IPA Carbon Working Group (CWG), an IPA-led group of While we do not yet see this “GHG-based high-grad-
owner firms working together to benchmark and improve ing” of portfolio consistently across all companies—or
the low-carbon and sustainability performance of projects even across all opportunities in a company’s portfolio—
and project systems. this emerging trend does highlight the growing integration
of GHG intensity improvement through the early definition
Integrating GHG performance phases of project development. We see the GHG performance
A common metric used for opportunity screening for hydro- of the opportunity driven primarily by the hydrocarbon
carbon production projects is $/boe (capex spent per amount type (ratio of gas and oil produced), reservoir and fluid char-
of hydrocarbon produced). This metric, often referred to acteristics, and concept selected to develop the reservoir.
as unit development cost, helps decision makers compare
opportunities in their global portfolio and screen out the Emerging best practices
ones that are not competitive enough. A similar trend is Historically, less than one-third of E&P projects achieve
emerging with the use of a kgCO2eq/boe metric (GHG emis- more than one of their established objectives across cost,
sions emitted per amount of hydrocarbon produced) to schedule, production, and predictability. The addition of
compare and screen opportunities based on their carbon GHG emissions targets makes achieving multiple objectives
competitiveness. This metric, referred to as GHG intensity, even more difficult. To deliver optimized results across a
reflects the overall emissions from the development over range of project key performance indicators (KPIs), a project
the life of operating that asset or field. team needs to rely on an array of activities to balance those
A measure of the GHG intensity of different proj- objectives. IPA’s carbon optimization readiness assessment
ects over time provides a good indication of whether the (CORA) examines the completeness of inputs, practices, and
processes used to balance GHG emission targets against
Trend suggests GHG intensity of ongoing project other project KPIs, such as cost or value.
is improving
Achieving a GHG emissions outcome optimized with a
High
intensity
Pr <0.18 project’s cost target requires establishing clear objectives,
(kgCO2eq/boe produced)
Estimate GHG intensity

an integrated team with a GHG emissions specialist, mature

Delta 45% emissions and cost estimates, tools to weigh the effect of
project decisions on KPIs, and assessment of delivery risk.
The CORA considers these factors.
IPA measures elements of CORA for all projects during
Low their GHG Performance evaluation. Figure 2 presents the
intensity

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
trend we see in the project team’s readiness with authori-
Authorization year zation year. There is a significant positive trend highlighting
the increasing adoption of practices identified under CORA
Readiness of project teams is improving as industry makes with newer projects. On average, projects authorized pre-
GHG-related practices a requirement for all projects 2017 were lagging in their readiness to deliver their GHG
Carbon Optimization Readiness

Best practice Pr <0.0001 targets, whereas most projects authorized post-2021 fall in
Good

the best rractice range. This is expected as more companies

formalize the use of internal guidelines and frameworks
Fair

for project teams to address GHG performance.

On deeper analysis, we see very little variability in the
Underdeveloped

maturity of GHG estimates developed by different project

teams. They use mostly the same inputs and are large-
ly consistent in the level of definition required for those
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 inputs at the different project phases. As the adoption of
Authorization year
*Represents Carbon Optimization Readiness for projects at the end of Define phase; excludes project in Select phase this new KPI increases across other companies globally,

MARCH/APRIL 2023 | www.offshore-mag.com OFFSHORE 19

230304OFF18-21_ipa.indd 19 3/29/23 3:16 PM

 ESG FOCUS CONTINUED
having alignment on a standard level of maturity expect-
ed in GHG estimates at different decision gates would help
us to understand real progress.
Optimizing different KPIs
IPA measures the carbon competitiveness of projects based
on the project team’s estimates of GHG emissions compared
with the industry average GHG emissions of a project with
similar characteristics. Based on the overall performance
trends IPA has seen in the industry and the relative competi-
tiveness between companies, some clear patterns are emerg-
ing that separate the industry leaders from the followers.
While understanding the carbon competitiveness of any
project is the first step, it is important to optimize the bal-
ance between cost competitiveness and carbon competi-
tiveness. IPA’s Carbon Capital Effectiveness (CCE) analysis
compares the project’s carbon and cost effectiveness. It is
commonly expected that achieving a low-carbon project
comes at increased cost. While this is sometimes true, in
several cases decisions made by the project team helped
deliver a low-carbon and low-cost project. A well-framed
and well-defined project should achieve the optimal balance
between GHG intensity and cost. Such a project is best pre-
pared to succeed in both outcomes.
Figure 3 shows the relationship between the optimal
outcome measure, CCE, and project team’s readiness, CORA,
for projects in the IPA database. As can be seen, projects
with a good CORA score are significantly more effective in
developing low-carbon low-cost projects than projects that
lag in their practices.
Strong relationship exists between Readiness and CCE
Low-carbon
Pr <0.02
Carbon Capitol Effectiveness
Low-cost
Trade off between
cost and carbon
High-carbon
High-cost
Good Fair Underdeveloped
Carbon Optimization Readiness
Treating GHG emissions as a cost
The decarbonization journey is not just about getting to
the optimal solutions but also getting there quickly. There
is a sense of urgency in achieving low-carbon performance.
This is certainly reflected in the actions of some of E&P
sector companies. Most UIBC companies now evaluate GHG
performance for each E&P project and use this metric to
drive key decisions. This trend has really only emerged in
the last few years. As companies make addressing GHG a
requirement, we are seeing certain Best Practices emerge
and their adoption is already increasing across project
20 OFFSHORE
230304OFF18-21_ipa.indd 20
teams. An important evolution is that companies and proj-
ect organizations are now beginning to treat GHG emissions
just like cost. They are realizing there is a carbon budget,
global and corporate, and are making decisions to maxi-
mize value while staying within that budget. We absolutely
have to continue on this path of improvement.
Decarbonization journey continues
While we are making great progress in improving the
carbon competitiveness of hydrocarbon production, there
are still gaps we need to address as an industry to succeed
in this endeavor. Some of the key gaps are:
Inconsistency in measurement and reporting. Most regions
now require companies to report their emissions on a reg-
ular basis. However, the regulatory expectations are often
at a much higher level—portfolio level, sometimes asset
level, rather than project level. This leads to a disconnect
between the GHG estimates and capex decisions made at
an individual project level, and the measurement of actual
performance after startup. Like hydrocarbon production,
we need to establish strong feedback loops to understand
what really happens after startup—that is, did the proj-
ect deliver on its promise? And what can we learn from
the deviation between estimate and actual performance?
Addressing Scope 3 emissions. The industry seems to have
a good understanding of their Scope 1 and Scope 2 emis-
sions, and in most cases an effective plan to address these.
Plans to address Scope 3 emissions, however, are not well
established yet. Some project organizations have begun
estimating Scope 3 emissions (including those from fab-
rication yards, transport and installation, contractors and
vendors, etc.) in their decision making. We need to increase
focus on this issue and work toward setting up frameworks
to influence Scope 3 emissions in a positive way.
Integrating GHG performance into decision making. Early
adopters have shown that there is a way to continue to
deliver value and, at the same time, progress a low-carbon
agenda. While significant, they still only represent a frac-
tion of the global hydrocarbon production. All hydrocarbon
producers, especially those in regions that do not yet have
a price on carbon, have to integrate GHG performance in
their decision making for long-term success. ●
Adi Akheramka is IPA’s Research Team Lead for Carbon
Management and Sustainability. His focus is on improving the
sustainability performance of individual capital projects and project
delivery systems through effective benchmarking and adoption of
industry best practices. He works with several Fortune 500 and other
companies across industrial sectors to help them progress their emissions reduction,
water management, and waste management agendas. Adi has participated as a
speaker, panelist, and moderator at many industry conferences, including the World
Petroleum Congress (WPC), the International Meeting for Applied Geoscience & Energy
(IMAGE), and events organized by the National Ocean Industries Association (NOIA)
and Society of Petroleum Engineers (SPE).
www.offshore-mag.com | MARCH/APRIL 2023
3/29/23 3:16 PM
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 EASTERN MEDITERRANEAN UPDATE
Growing international gas demand
spurs interest, activity offshore Israel
Renewable power, port infrastructure also
part of country’s development opportunities
Naama Myers-Altman, US EMBASSY ISRAEL
I
srael’s growing offshore energy and
port infrastructure market is an attrac-
tive market for American suppliers and
businesses with expertise in infra-
structure development. With a strong
and stable economy led by a high-tech
sector and a spirit of innovation, many
US companies are considering Israel for
opportunities for investment, acquisi-
tion and partnerships.
The goal here is to provide an over-
view of Israel’s offshore oil and gas
market and the US presence in the
market; European efforts to diversify
its gas supply; Israeli offshore clean
energy and port development trends;
and joint US-Israeli research oppor-
tunities. At the same time, the hope
here is to provide a spotlight on Israel’s
business climate and how the US
Commercial Service’s export resourc-
es can help American businesses find
success in the Israeli market.
Israeli energy trends
Since the first commercial discovery of
natural gas in Israel in 2000, the coun-
try has been continuously developing
its offshore gas resources. Over the past
20 years, the country has transformed
from a net importer of fossil fuels, to
being self-sufficient and a regional
exporter of natural gas, although it still
imports crude oil and coal. The coun-
try’s coal-generated power is gradual-
ly diminishing and accounted for only
26% of Israel’s power in 2020, whereas
in 2015 it accounted for 60%. The Israeli
22 OFFSHORE
230304OFF22-25_med.indd 22
its oil and gas industry. The United
States already has a strong presence
in the Israeli energy market. In 2009,
the US company Noble Energy, which
was acquired by Chevron in 2020,
and its local partners discovered the
Ministry of Energy’s 2030 goal for elec- Tamar offshore gas field, which pro-
tricity generation is to replace coal pri- vided the majority of Israel’s natural
marily with natural gas, reaching an gas until 2020. More recently, Chevron
energy mix comprised of 70% natural and its local partners discovered the
gas and 30% renewables, while phas- Leviathan offshore gas field, which
ing out coal plants over time. Domestic started production in late 2019 and
consumption of natural gas is steadi- has contingent resources totaling 605
ly growing and has reached 12.3 bil- bcm of natural gas – almost double the
lion cubic meters (bcm) in 2021, a 4.5% size of Tamar and approximately two-
increase from 2020. The growth in nat- thirds of the gas discovered to date in
ural gas consumption was led by the offshore Israel.
electricity sector, accounting for 79% In 2021, natural gas production
of generation sources. from Leviathan surpassed Tamar and
provided more than 50% of Israel’s
Opportunities natural gas. Other international oil
for participation companies operating in Israel include
Israel regularly releases tenders for Greece’s Energean and its partners,
equipment and services to support developing the Karish and Tanin fields,
Port development
represents another
opportunity, as the
government of Israel
has embarked on a
privatization process
of its ports over the
last decade. Shown
here is Ashdod Port,
Israel’s largest port.
COURTESY US COMMERCIAL
SERVICE IN ISRAEL
www.offshore-mag.com | MARCH/APRIL 2023
3/29/23 3:16 PM
 as well as block D, which was award-
ed in 2019. In addition, British com-
panies Cairn and Pharos and their
Israeli partners were awarded blocks
A and C in 2019.
Even with the increases in domes-
tic natural gas demand, the export
market for natural gas produced in
Israel is growing significantly. Total
exports of natural gas between 2020
and 2021 increased by 68%, of which
exports to Egypt grew by 96%, and
exports to Jordan grew by 46%.
European gas demand
Europe is looking to diversify its gas
supply in the wake of Russia’s war in
Ukraine and the global energy crisis.
In this context, Israel, Egypt and the
EU signed a memorandum of under-
standing last June, capturing the
parties’ interest in increased collabo-
ration on trade, transportation and the
export of natural gas to EU countries.
In addition to the existing infra-
structure already supporting exports
to Egypt and to Jordan, the government
of Israel is evaluating a few other pipe-
line projects that will allow increased
exports to these two markets and to
new markets. One of the options is a
subsea pipeline to Egypt where the gas
will be liquified and shipped to Europe.
Another option is the ambitious “East-
Med” subsea pipeline, currently pend-
ing final investment decision, intended
to convey gas from Israel’s and Cyprus’
offshore gas fields to Europe.
There are no commercial oil wells
in the country and Israel is still relying
on imports for oil. Crude oil is trans-
ported to one of Israel’s two refiner-
ies: the Bazan refinery in the north,
and the Paz refinery in the south. Both
refineries are privately owned.
“Clean Tech” and port projects
Despite ample solar power poten-
tial, Israel continues to fall short of
meeting previously stated renew-
able energy goals, producing only
8% of its electricity from renewable
sources in 2021. The vast majority of
this renewable energy is solar, but
it also includes some wind, biomass
MARCH/APRIL 2023 | www.offshore-mag.com
230304OFF22-25_med.indd 23
and other non-fossil sources. Lack of
land resources, bureaucratic bottle-
necks, and recent discoveries of off-
shore gas that can produce electricity
at a lower cost than solar are often
cited as factors explaining the low-
er-than-expected use of renewable
energy. In 2021, in line with its com-
mitments to the Paris Agreement, the
Israeli government updated its green-
house gas (GHG) emission reduction
goal to a 27% decrease in GHG emis-
sions by 2030, with the goal of reach-
ing net-zero targets by 2050 (2015 was
used as the base year). An earlier gov-
ernment decision set a target of 30%
of electricity to be generated from
renewable sources by 2030. To reach
these goals, Israel will need to signifi-
cantly increase its overall installed
capacity from renewable energy and
energy storage.
Due to the lack of land mass for
certain energy projects, the Israeli
Ministry of Energy announced in
August 2022 its intention to embark on
a strategic environmental assessment
to examine renewable energy gener-
ation and the use of other sustainable
technologies offshore. Some of the
technologies that will be assessed
include wind turbines, solar photo-
voltaics, energy storage, wave energy,
biomass energy (e.g., from seaweed),
and generation and transmission of
hydrogen. American companies that
possess relevant experience are eligi-
ble to bid to provide the assessment
to the Ministry of Energy, as long as
they register in Israel or work with a
local partner. Once the assessment is
concluded, American companies will
also have opportunities to bid on any
offshore tenders that result from the
findings of the assessment.
Gas export options
from offshore Israel
through pipelines.
COURTESY ISRAEL MINISTRY
OF ENERGY
Port development
Port development represents anoth-
er viable vertical for US firms in the
market. The Government of Israel
embarked on a privatization process of
its ports in the last decade. As a result,
five of Israel’s six ports are now pri-
vately held, or in the advanced stages
of privatization. The one remaining
government-owned port is Ashdod
Port, Israel’s largest port, which is
also intended to be privatized in the
future pending an official govern-
ment decision.
The privatization of Ashdod Port,
once initiated, will present opportu-
nities for US port operators and strate-
gic investors to acquire a major Israeli
infrastructure asset. Additional oppor-
tunities for US firms can be found
in Ashdod Port’s major infrastruc-
ture expansion program. The port is
continuing to make massive invest-
ments in its infrastructure, valued at
approximately $750 million over the
last few years. This includes develop-
ing quays, upgrading operational sys-
tems, cranes, technologies and more.
Lastly, Ashdod Port is in the pro-
cess of repositioning from being Israel’s
largest port, to Israel’s most innovative
OFFSHORE 23
3/29/23 3:16 PM
 EASTERN MEDITERRANEAN UPDATE CONTINUED
and sustainable port requiring “green”
technologies. In this framework, it
established an accelerator program as
well as strategic partnerships with key
U.S. ports. This enables U.S. firms with
technologies applicable to the maritime
industry to conduct a proof of concept
(POC) at the port, and potentially secure
equity investments from the port.
Joint US-Israeli R&D
Known as “start-up nation,” Israel
invests heavily in research and devel-
opment. American firms account for
nearly two-thirds of the more than
300 R&D centers established by mul-
tinational companies in Israel.
Broad opportunities also exist for
joint R&D between American and
Israeli firms, across numerous verti-
cals. The Ministry of Energy’s Chief
Scientist Office regularly publishes
calls for proposals for (R&D) grants,
from inception to implementation. For
the first time, international companies
are now also eligible to compete, pro-
viding that they register in Israel or
have a local partner.
Israeli international tenders
The Israeli government periodically
issues international tenders for off-
shore exploration and production
licenses. The fourth bidding round,
published in December 2022, covers
four zones. In a 2020 report, the US
Geological Survey estimated undis-
covered, technically recoverable
resources of 879 million barrels of con-
ventional oil and 286.2 trillion cubic
feet of conventional gas in the eastern
Mediterranean area.
Ot her t ha n E x plorat ion a nd
Production tenders, the Israeli gov-
ernment is planning large-scale
infrastructure projects across almost
all industries. The Israeli Prime
Minister’s Office publishes annually
the “Infrastructure for Growth” book-
let, a national infrastructure road-
map consolidating all projects valued
at more than 100 million shekels (~$30
million). Projects included in this book-
let are either budgeted or approved by
24 OFFSHORE
230304OFF22-25_med.indd 24
the government (or already in prog-
ress) and are therefore viable oppor-
tunities. In 2021, the booklet included
240 projects, valued at ~$86 billion in
total, across many industries includ-
ing: renewable energy, conventional
energy (e.g., gas-based power plants),
water, transportation, and design and
construction. A significant portion of
the projects will be implemented via a
public-private partnership model.
Investment climate
As noted earlier, Israel has an inno-
vative high-tech and research sector
that attracts interest from American
companies looking for investment,
acquisition, and partnership oppor-
tunities. With total bilateral trade of
$45 billion, the United States is Israel’s
single-largest trading partner world-
wide, and Israel is the second-largest
trading partner for the United States
in the Middle East region. Further, the
US-Israel Free Trade Agreement (FTA),
signed in 1985, eliminated nearly all
non-agricultural trade tariffs. As for
international ranking, according to a
2022 Fitch Infrastructure Risk/Reward
Index, Israel ranks 16th globally (out
of 105) and first regionally (out of 19).
Notwithstanding its stable economy
and strong relations with the United
States, some challenges still exist for
American companies in the market.
Israel is a small market and mature in
many sectors, resulting in significant
local and international competition.
Additionally, Israel’s robust commer-
cial ties with Europe have led the Israeli
government to adopt European Union
– over international – technical stan-
dards in some industries.
Changes in Israel’s political system
over the past few years trickles down
also to the private sector, resulting
in some delays in securing budgets
for major infrastructure projects and
inconsistent strategies pertaining to
the business sector.
Below are some export tips from
the US Commercial Service in Israel:
Find a local partner. Personal con-
nections are of utmost importance
www.offshore-mag.com | MARCH/APRIL 2023
in the Israeli market. For a first busi-
ness outreach to a potential partner
or government official, it is preferable
to be referred by local contacts who
can facilitate a warm introduction.
Israeli stakeholders expect interna-
tional companies to visit the market
regularly and establish a direct rela-
tionship with local partners. While
the use of an agent or a distributor
is not legally required (except for
some government procurement or
sensitive products), partnering with
a local representative with indus-
try contacts and technical skills
can be a key factor to your success
in the market. Due to Israel’s small
geographic size (approximately the
size of New Jersey), distributors and
agents normally demand exclusive
representation rights.
Check out government tenders.
Israel is increasingly opening to
international players, especially in
large infrastructure projects in which
Israeli companies do not possess expe-
rience. Israel is a signatory to the WTO
Government Procurement Agreement
and is therefore committed to pub-
lishing international tenders over
certain thresholds, for tenders issued
by government ministries as well as
by state-owned companies. For some
international tenders, foreign compa-
nies are required to enter into offset
agreements per Israel’s “Mandatory
Industrial Cooperation” policy.
Take advantage of US Commercial
Service assistance. The US Commercial
Service (CS), part of the US Department
of Commerce’s International Trade
Administration, offers American
companies a full range of expertise
in international trade. Companies can
find assistance through 100+ CS offic-
es nationwide and in more than 75
international offices. ●
Naama Myers-Altman has been
serving as a commercial specialist at
the US Commercial Service in Israel
since 2018, covering several industries
including: energy, environmental
technologies, and infrastructure.
3/29/23 3:16 PM
 /////////

/////MOVING
///// FORWARD
OCT 23 – 25, 2023
Moody Gardens Hotel and Convention Center
Galveston, TX // offshore-event.com

OWNED & PRODUCED BY PRESENTED BY SUPPORTED BY

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2/26/23 3:16
7:52 PM
PM
 SUBSEA

All-electric subsea multiphase

pumping system offers promise
of reduced complexity, cost
Full-scale system trials
in Norway later this year
Jeremy Beckman, EDITOR-EUROPE

S
ubsea pumps have been around for over two decades,
with a track record of improving oil recovery. But take-
up remains limited due largely to the high capex and
running costs and associated system complexity.
A presentation at last September’s Multiphase Users
Roundtable event in Houston by FASTsubsea and Petronas
Research highlighted some of the drawbacks. Single-phase
and multiphase (MPP) subsea pumps have sensitive mechan-
ical seals, with the topside support equipment – including
electric variable-speed drives and hydraulic power packs
for clean barrier fluid supply – occupying extensive space
that may not be available on the host FPSO or platform.
The long hydraulic umbilicals between the platform and
pumps increase the overall engineering and hardware cost
and must undergo regular testing; and during operations,
a failure of a subsea MPP pump typically requires deploy-
ment of an IMR vessel to retrieve the module, with associ-
ated production interruptions and lost revenue.
Aker Solutions and FSubsea in Norway are seeking to
address these concerns with their independent (topside-less
and seal-less) 2-MW subsea multiphase pumping system,
FASTsubseaX. This is designed to be more autonomous
than existing subsea pumps and to enable subsea boost-
ing at fields where there is little or no available topside
space. In addition, it is all-electric, with no hydraulic oils
or chemicals, and is said to be less energy-intensive than
some existing boosting systems, reducing CO2 emissions
from production operations.
In 2019 the two companies formed a joint venture
(FASTsubsea) for the development and subsequent Joint
Industry Project, named FASTsubsea X. According to
Alexander Fuglesang, CEO of FSubsea, “we realized we had
complementary skills that would work better in combination.
Artist's impression of the FASTsubseaX multi-phase pumping
system. COURTESY FASTSUBSEA
Aker Solutions brought subsea processing experience from
the Asgård subsea compression and Tyrihans subsea raw
water injection projects in the Norwegian Sea; the compa-
ny’s Tranby multiphase test facility in Norway; and suc-
cessful qualification of its MultiBooster MPP, a vertically
suspended, mixed-flow multi-stage centrifugal pump.
“FSubsea, meanwhile, had delivered more than 50 pumps
for deepwater operations worldwide and had developed
unique magnetic coupling technology and HydroMag,
the drive line for the company’s own single-phase pumps.
This is also the enabler for the `seal-less’ and `topside-less’
aspect of the FASTsubseaX MPP system: HydroMag elimi-
nates the need for most conventional topside support equip-
ment such as variable-speed drives, hydraulic umbilicals,
mechanical seals and barrier-fluid systems. So for this
development, capex costs could be up to 50% lower than
conventional subsea pumping systems, and the environ-
mental profile is improved due to the reduced CO2 footprint
of the topside installation, operations and maintenance.”
Concept work started in late 2020 when Petronas decided
to join the JIP and the co-venturers obtained funding from

26 OFFSHORE www.offshore-mag.com | MARCH/APRIL 2023

230304OFF26-29_fast.indd 26 3/29/23 3:16 PM

 the Norwegian Research Council’s Demo2000 program. The
work entered a more intensive phase in late 2022, when
Equinor and Vår Energy also came onboard. Towards the
end of this year, a full-scale FASTsubseaX MPP prototype
is set for an extended trial at the multiphase testing loop in
Tranby, to demonstrate TRL-4 technology readiness level. On
completion next year, the development should be ready for a
first commercial application offshore.
The main components of the FASTsubseaX MPP module
are the HydroMag Drive Unit (HDU) integrated with a 20%
scaled down version of Aker Solutions’ already qualified
MultiBooster MPP pump cartridge; a flow conditioning
unit and liquid extraction unit respectively upstream and
downstream of the pump; and a minimum flow protec-
tion system. The MultiBooster is a vertically suspended,
mixed-flow multi-stage pump with semi-axial impel-
lers designed to handle high gas volume fractions (GVFs),
and rotor dynamic stability in the full operating range of
0-100% GVF. The design can be modified for lower or higher
performance, as required.
The cartridge, which took more than seven years to
design, build and qualify to its current TR-5, API 17N status
underwent several iterations to reach its current state of
performance and reliability, and ensure a good fit with
the HDU. “Scaling was done in two steps,” Fuglesangs
explained, “first with the use of a simple prediction model
that was developed and verified to test data in the qualifica-
tion of the MultiBooster pump, and which enables mapping
performance of new hydraulic sizes to a very high accuracy.
Standalone testing of a
HydroMag drive unit.
COURTESY FASTSUBSEA
230304OFF26-29_fast.indd 27
Once that first stage was completed, a more detailed 3D CFD
analysis followed of the selected hydraulics.”
As for the HDU, which should achieve TRL-4 (API 17N)
readiness by mid-2023, the chief components are:
• A pressure-compensated, fixed-speed, 2-pole Ace
electric motor
• A hydrodynamic torque converter made by Voith Turbo in
Germany, based on the company’s established EL design
• A permanent magnetic coupling.
The HDU transfers rotational energy from the electric motor
through a hermetically-sealed barrier to the pumping unit;
it also converts fixed-speed rotational energy to vari-
able-speed, which can result in a pump speed up to twice
the motor speed. The hermetically-sealed barrier, located
between the magnetic coupling driver and follower, sep-
arates the process media from the cleaning fluid and the
surrounding atmosphere. That enables use of pressure-com-
pensated motor technology, casings and electrical penetra-
tors, with no requirement for a barrier fluid system.
According to Fuglesangs, the system is designed to
respond to any changes in process conditions via the
torque converter. “The electrical motor runs at a constant
low speed, providing low vibrations and low viscous losses
all while the pump operates at any desired speed (within
the speed limits) without the need for an external vari-
able-speed drive. This is achieved by the functionality of
the torque converter in which a pump wheel mechanical-
ly connected to the motor output shaft transfers torque
to a turbine shaft connected to the driver magnet in the
3/29/23 3:16 PM
 SUBSEA CONTINUED
magnetic coupling. Power is transferred hydrodynamical-
ly between the motor shaft and pump shaft.”
“To accommodate process changes during field life, the
torque converter can be set to operate at constant guide
vane position equals constant power transfer,” Fuglesang
added. “This can be particularly advantageous in MPP appli-
cations for inherent and efficient management of gas slugs.
A gas slug entering the pump will via its low density reduce
the pump torque and the HDU will (inherently) `travel’ on
the particular guide vane operating line by increasing the
speed to maintain the power. This increase in speed is the
exact desired action when experiencing a gas slug to effi-
ciently evacuate the gas from the pump – which again, is
automatically achieved in near real-time with the fixed
guide vane operating mode (without any override of the
control system). The motor will run at the supply frequen-
cy: the system is designed and tested with 50 and 60 Hz
on the motor.”
FASTsubseaX’s liquid-filled, insulated, winding asyn-
chronous motor is similar in design to the one applied
for Equinor’s Tyrihans subsea raw water injection project
(Tyrihans is a tieback to the Kristin semisubmersible plat-
form). The magnetic coupling is based on patented FSubsea
28 OFFSHORE
2108OFF_RMYoungCo.indd 1 5/6/21 1:45 PM
230304OFF26-29_fast.indd 28
Aker Solutions’ MultiBooster subsea multiphase pump. COURTESY
AKER SOLUTIONS
technology and rated to 345 bar and speeds up to 6,000
rpm, allowing the system to power pumps of up to 2 MW
shaft power. “One of the main technical challenges is seen
as the process lubricated bearings. However, we have been
able to reduce this risk to a minimum with design, material
selection and testing,” Fuglesangs said.
Tranby trials
At Tranby later this year, the performance test will cover
the full speed, flow, and pressure range of the machine
with particular focus on high pressure delivery at 70% GVF.
Fuglesangs elaborated: “Furthermore, the plan is to perform
the test with water and air with an option to also test with
model oils and nitrogen. Water and air is a challenging mul-
tiphase fluid as the density ratio between liquid and gas can
become very large. A large density ratio increases the ten-
dency for phase separation and potential for gas locking. The
purpose of including model oils and nitrogen (or air) is to map
the performance under varying viscosities.”
“This is a full-scale prototype testing with an 8-stage
back-to-back arranged pump cartridge. The pump unit
(pump, motor and casings) weight and height is 30,000 kg
and 8 m respectively. The pump unit will be placed in a
subsea frame with additional elements, such as main piping
and cooler. The design is targeting a longer service life than
existing subsea pumping systems, which will be achieved
mainly through the benefits of the HydroMag drive unit.”
According to Fuglesangs, the pump capacity competes
with other conventional MPP systems up to 2MW pump
shaft power. “The industry has progressively gone towards
larger and larger systems with some manufacturers focus-
ing on pumps up to 6MW. One advantage of the smaller
FASTsubseaX is its suitability for distributed boosting,
where the individual pumps can be located closer to the
wells, potentially yielding a higher IOR. The distributed
boosting potential of FASTsubsea X is further improved by
the fact that one single power cable can supply power to
several pumps while the pumps can operate at its desired,
and unique, pump speed. This is achieved through the
HydroMag drive unit’s built-in speed regulating device,
the torque converter. Reliability is further enhanced by the
elimination of the mechanical seal and its related sensitive
barrier fluid system.”
www.offshore-mag.com | MARCH/APRIL 2023
3/29/23 3:16 PM
 In various brownfield or tie-back scenarios, he added, “For all field scenarios, upstream/well connection
multiple FASTsubseaX pumps could be competitive with arrangements would be similar to those for existing subsea
fewer traditional pumps, on a system lifecycle cost basis. pumps, although we believe the FASTsubsea X system is
“With the distributed boosting option, a `one-pump-per-tree’ more forgiving in its response to gas slugs, due to its hydro-
approach is very lucrative with this technology as the power dynamic, dampened and fast-response coupling system.
supply system remains very `slim.’ And since the pump does The maintenance philosophy is based on predictive main-
not require anything other than high and low voltage power tenance through condition monitoring, with in-situ main-
and fibers for communication, this opens up competition for tenance performed by standard work class ROVs.” ●
the cable scope – it could be any quali-
fied subsea power cable make or brand.”
FASTsubsea has performed sever-
al in-depth assessments of step-out
scenarios to determine the capability
of the pump’s reach. “These analyses
have looked at power from a stable grid,
weather from a platform, FPSO or shore,
but not yet from renewables. The conclu-
sion is that 100+ km is possible with cor-
rect dimensioning of the power supply
source and power distribution system.
“This technology can be deployed
Your
to tie-in wells to already developed
fields, even those already supported
by gas injection: however, the feasi-
efficiency
bility will depend on many aspects
where the pump forms only a small,
but important, part of the puzzle. The
pumps can also, if considered early in
rises
the development, be a great alterna-
tive to gas injection in the first place
with potential to greatly reduce cost
related to drilling injection lines, injec-
tion pipelines, and topside equipment
required for gas injection. However, the
total IOR is complex and will obvious-
ly depend on the well performance.”
In Brazil’s presalt, Petrobras is
deploying patented technology on the
seafloor to reinject CO2 produced with
the wellstream. Could FASTsubsea X be
adapted accordingly? “This is a topic
that we have not studied to a great
Oil & Gas
detail,” Fuglesangs admitted. “When solutions expertise
it comes to pumping dense-phase CO2,
the approach will very much depend
on the specific application. In some Innovative decarbonizing systems
cases, it may make more sense to Satisfying the world’s demand for more
pump it, while in other cases, com- energy and lower carbon emissions
pressing it may be more appropriate. requires imaginative solutions that are
FASTsubsea X can be a contender but both sustainable and profitable. Make
use of our expertise in resource-efficient,
a deeper investigation is required. We
low environmental impact technologies
have seen some applications where
and services for the upstream, midstream
single-phase pumps have performed
and downstream sectors.
very well on CO2 boosting.”
www.man-es.com

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3/22/23 3:16 PM
AM
 DECOMMISSIONING
New statistical
data can help
pinpoint pipeline
decommissioning
costs
Research suggests that average costs range
from $29/ft to $75/ft in shallow water
Mark J. Kaiser, LOUISIANA STATE UNIVERSITY
I
n the final part of this series, cost sta-
tistics for pipeline decommissioning
in the shallow-water (<122 m, <400
ft) Gulf of Mexico are described. The
summary statistics and unit cost
described here are based on cost esti-
mates performed by BSEE and report-
ed on the BSEE Online Query System.
These cost estimates are based on
statistical methods, work decomposi-
tion methods, and possibly combina-
tions of the two.
Probabilistic vs.
deterministic cost
BSEE reports two types of cost esti-
mates, probabilistic (P50, P70, P90) or
deterministic, for each decommission-
ing stage. The method applied is not dis-
closed, but it is reasonable to assume
that probabilistic cost estimates are
made where there is an adequate sample
of operator-data, while deterministic
30 OFFSHORE
230304OFF30-33_kais.indd 30
approaches are applied where proba-
bilistic descriptions are not feasible or
possible, namely for small samples or
specialized and diverse operations.
For most shallow-water wells and
platforms, probabilistic cost estimates
are reported, and in Parts 2 and 3 of this
series, results for P50 cost statistics and
functions were described for well aban-
donment and platform removal.
All BSEE pipeline decommissioning
cost estimates are reported in deter-
ministic terms, probably an indication
of the wide variation in reported data,
which is not surprising considering
the nature of the operations and the
diversity of pipeline types.
The use of a single statistic (most
likely the average or median of opera-
tor data) is classified as deterministic,
although in principle other methods
such as work decomposition approach-
es, could also be applied.
www.offshore-mag.com | MARCH/APRIL 2023
PHOTO 269142225 © MICHAEL KUELBEL | DREAMSTIME.COM
Pipeline type
Pipelines are used to transport raw
and processed production between
wells and platforms, between plat-
forms, and from platforms to shore.
They range in size from less than 1
inch to 54 inches in diameter, and may
be less than a hundred feet to sever-
al miles long.
Pipelines transport bulk (raw)
streams from the wellhead, pro-
cessed oil and gas, water, and various
other products. Described by segment
number, a pipeline segment originates
at one location and water depth and
terminates at another location and
water depth.
There are a few dozen product
codes applied but only a handful are
important in shallow water. Bulk gas
(BLKG) and bulk oil (BLKO) represent
3/29/23 3:16 PM
 In aggregate, average
costs increase from
$321,000 per segment
in water depth <30 m
to $498,000 in water
depth 61-122 m.
full well stream production from gas
wells and oil wells, respectively.
After first processing, pipelines are
classified as gas (GAS) and oil (OIL) and
these are export line designations.
Lift (LIFT) lines are used to send
natural gas to a wellbore to help lift
oil to the surface and are common in
shallow water.
MARCH/APRIL 2023 | www.offshore-mag.com
230304OFF30-33_kais.indd 31
All the other product classifica-
tions such as gas and condensate
(G/C), gas and oil (G/O), and oil and
water (O/W) pipelines are used less
frequently with much less installed
mileage. If trace amounts of hydrogen
sulfide are present in the streams, an
H is affixed to the label; e.g., GASH,
OILH, G/CH, G/OH.
Cost factors
In accord with BSEE regulations, a
pipeline may be abandoned in place if
it does not constitute a hazard to nav-
igation or commercial fishing opera-
tions and does not unduly interfere
with other uses in the OCS. Pipelines
abandoned in place need to be flushed,
filled with seawater, cut, and plugged
with the ends buried at least 1 m (3 ft)
below the mudline.
2304OFF_FluidLineProducts.indd 1 1/31/23 10:26 AM
3/29/23 3:16 PM
 DECOMMISSIONING CONTINUED
Pipeline abandonment cost is deter-
mined by the water depth involved,
the length and type of the pipeline,
the number of endpoint connections,
and whether the pipeline terminates
at a subsea tie-in or another platform.
Pipelines need to be purged and
cleaned and one factor influencing
pipeline decommissioning cost is the
volume of fluids used to clean the line,
which can be estimated by the diame-
ter of the pipe multiplied by the length
of the line.
Water depth is another factor in the
cost of pipeline abandonment opera-
tions because water depth places a
physical restriction on the amount of
time divers can safely work, and divers
are often used in shallow water to This is borne out statistically, to
make pipeline cuts. some extent, since each of the four
Pipelines transiting sand resource main status categories have quite sim-
areas may require full removal so as ilar average decommissioning cost by
not to interfere with other resource segment and vary in value by only a
users, and removal operations are much few percent from each other. Status is
greater than leave-in-place options. not considered a useful attribute for
cost estimation.
Cost statistics Pipeline decommissioning cost sta-
The status of a pipeline is not expected tistics are summarized in Table 1 by
to impact the cost of decommissioning
since whether the pipeline is active or TABLE 3. Pipeline
out of service, the close-out activities decommissioning cost
remain essentially the same, and even functions in <30 m water
though starting points of the operation depth circa 2022.
may be different, distinguishing differ- VARIABLE MODEL I MODEL II
ences in cost at this level of granulari-
12,895 12,872
ty are usually not possible or relevant. WD
352 (36.6) 349 (37)

TABLE 1. Average pipeline decommissioning cost circa 2022. 13.5 15.8

L
0.78 (17.3) 0.92 (17.2)
WATER DEPTH (M) PIPELINE ($1000/SEGMENT) PIPELINE ($/FT)
-10.6
< 30 321 (119) 31 V
2.38 (-4.5)
30-60 377 (104) 47 R2 0.81 0.82
61-122 498 (280) 65 n 1135 1135
Note: WD = water depth, L = length, V = volume.
Standard errors below coefficients and t-statistics in
TABLE 2. Pipeline decommissioning unit cost statistics by product parenthesis.

group circa 2022.

WATER DEPTH BLKO BLKG OIL GAS LIFT TOTAL
< 30 M
# segments 357 230 37 68 300 1170
1000 ft 1823 1653 428 471 1361 12,275
$ million 109 77.6 12.4 24.2 93.2 375
$/ft 59.7 47.0 29.1 51.3 68.4 31.2
$1000/seg 305 337 335 356 311 321

30-60 M
# segments 81 84 38 61 43 374
1000 ft 699 709 321 455 381 3105
$ million 30.1 32.0 15.9 23.8 14 141
$/ft 43 45.2 49.6 52.3 36.8 46.8
$1000/seg 371 382 419 390 326 377

6 1 -1 2 2 M
# segments 29 25 33 40 21 168
1000 ft 232 232 217 339 143 1294
$ million 11.4 15.1 16.4 21.5 8.5 83.6
$/ft 49.1 65.2 75.4 63.3 59.4 64.6
$1000/seg 393 605 497 537 404 498

32 OFFSHORE www.offshore-mag.com | MARCH/APRIL 2023

230304OFF30-33_kais.indd 32 3/29/23 3:16 PM

 segment and footage. In aggregate, Cost functions (i.e., BSEE data processing) before fur-
average costs increase from $321,000 Regression models were built using ther examination of the output data is
per segment in water depth <30 m, to water depth, segment length, and warranted. ●
$377,000 in water depth 30-60 m, and volume (to include diameter varia-
$498,000 in water depth 61-122 m. tion), and although the results are Mark J. Kaiser is Professor at the Center for Energy
Normalizing by length, a similar encouraging (Table 3), we believe Studies, Louisiana State University, Baton Rouge,
increasing trend emerges, from $31/ more work is needed on the input end Louisiana.
ft in water depth <30 m, to $47/ft in
water depth 30-60 m, and $65/ft in
water depth 61-122 m.
Costs grouped by product type is
WINDEUROPE, COPENHAGEN
also insightful (Table 2). Five prod-
APRIL 25-27, #C2-A14
uct categories are employed and the
data shown include the sample size OTC 2023, HOUSTON TX
(number of segments), total distance MAY 1-4, #4009
in footage (1000 ft), and estimated
decommissioning cost of the sample
($ million). Unit costs are depicted by
pipeline footage ($/ft) and segment
($/segment).
Bulk oil and gas, oil and gas, and
lift constitute most segment counts,
footage and cost in all water depth
categories, but the unit cost show no
obvious trends across water depth
category or product type, and no
hypothesis or explanation are offered
on how the BSEE cost data was pre-
pared and evaluated except that the
use of simple averages or median
values were likely employed due to
the lack of available data.
In water depth <30 m, unit cost
depicted range from about $29/ft to
$68/ft, while in 30-60 m, cost ranged
from $37/ft to $52/ft, and in 61-122 m,
from $49/ft to $75/ft. Note that unit
cost per product type do not neces-
sarily increase in increasing water
depth, but the overall ranges (min and
max value) tend to increase. HEAVY DUTY CHALLENGES.
Cost per footage is likely a better
statistic than segment cost, unless
FORGED SOLUTIONS.
segments are relatively small. One
Irizar Forge specializes in forging fully certified
might expect bulk lines to cost more
lifting and mooring components (up to 5000T
to decommission than export lines, SWL) for complex offshore and subsea (ROV)
but the statistical evidence is mixed applications. Our unique, full service approach
and inconclusive. (in-house design, production, testing and certification
Lift lines, which are similar to gas from ABS, DNV-GL, BV, LR) has created high
performance hooks, blocks, swivels and connectors
(export) lines but much smaller, show
for nearly 100 years – turning leading EPC & OEM
no consistent trends. companies into satisfied customers.
In total, for all product types and
segment counts, unit cost increase
with water depth.
irizarforge.com
irizarforge.com
oier.sarasola@irizarforge.com
+34 608 91 29 66

230304OFF30-33_kais.indd 33 2304OFF_VanBeest_IrizarForge.indd 1 3/29/23

3/22/23 3:16
1:18 PM
PM
 SUBSEA TIEBACK REVIEW
Technology advances
the clear focus at
Subsea Tieback 2023
New offshore tools offer enhanced optimization
Ariana Hurtado, EDITOR AND DIRECTOR OF SPECIAL REPORTS
T
he annual Subsea Tieback Forum
& Exhibition was held Feb. 28 to
March 2 in Galveston, Texas, and
the conference chatter, filled with
enthusiasm about the current state of
the offshore sector, zeroed in on the
latest technology developments. The
following is a sampling of the subsea
innovations highlighted among the
nearly 80 exhibitors.
Subsea gate valves
Product performance and longevity are
imperative in subsea operations due to
costly time and personnel resources
needed to surface the equipment for
replacement or repair, according to
34 OFFSHORE
230304OFF34-35_sstb.indd 34
offer varying degrees of performance
and longevity in extreme conditions.
“These operational factors are typi-
cally prioritized over ESG because of
the high cost to develop new technol-
ogy,” he said.
WOM’s new Magnum XU subsea
gate valve is the latest addition to its
Magnum valve line, which Kalimuthu
boasted has nearly 40 years of
field-proven reliability. The Magnum
COURTESY WORLDWIDE OILFIELD MACHINE
XU valve evolved from this line as a
low-weight, high-value alternative
to conventional valves designed “to
outlast and outperform the ordinary.”
The Magnum XU valve is designed to
offer safer, more reliable performance
with features such as dual sealing and
Integral Hard Facing (IHF) technology.
With 50% less steel and weight com-
pared to conventional valves, it also
provides substantially lower carbon
footprint and logistical costs, he said.
The valve’s seats and gates coated
with WOM’s IHF process provides
durability of critical sealing surfaces.
This process involves coating powder
metallurgically bonded with the base
material by WOM’s spraying/fusing
process to achieve the desired physical
properties for performance and lon-
gevity. Other major original equipment
manufacturers typically use high-ve-
locity oxygen fuel (HVOF) coatings
that remain as a separate coating layer.
The WOM IHF has a higher coating
thickness than conventional HVOF,
Anand Kalimuthu, director of engi- which extends life of the valve and
neering with Worldwide Oilfield improves reliability, Kalimuthu said.
Machine Inc. (WOM). The Magnum XU valve’s cavity
“As water depths and pressures con- design reduces internal volume and
tinue to increase, subsea gate valves weight. Specifically, the rectangular
must evolve accordingly to oper- body cavity allows for significant-
ate reliably in extreme environments ly less grease volume and 50% less
and withstand harsh conditions,” weight than conventional valves. This
Kalimuthu told Offshore. “Social and directly reduces trucking costs and
environmental pressures relating to related logistics.
the energy transition are increasing- “It is still unknown how long
ly crucial in today’s market. The oil and hard the Magnum XU valve
and gas industry is facing the chal- can be pushed,” Kalimuthu said. “It
lenge of simultaneously delivering has already lasted four times longer
increased operational performance than the industry standard, but we
with decreased emissions.” continue to push further. API stan-
Traditional subsea gate valves dards for qualifying a valve design to
www.offshore-mag.com | MARCH/APRIL 2023
3/29/23 3:16 PM
 a level of PR-2 requires 200 full dif-
ferential valve cycles (valve operat-
ed while under pressure). This valve
has exceeded 28,000 cycles, and both
of the gate-to-seal seals are still hold-
ing high- and low-pressure tests. This
endurance test perpetuates as we con-
tinue to push its limits.”
Subsea survey recording
Forum Energy Technologies’ (FET) has
released a next-generation tool for the
required video recording equipment
for subsea survey and inspection.
Version 11 (V11) of VisualDVR, a dig-
ital video recorder produced by FET’s
VisualSoft product line (original-
ly launched in the early 2000s), was
designed to offer enhanced technol-
ogy and user experience. In common
with its predecessors, VisualDVR
(V11) is a multi-channel, rack mount-
able digital video system designed for
use on ROVs, supporting activities in
the energy, defense and ocean sci-
ence sectors.
“The system can record up to four
channels of HD video and is equipped
with a host of tools and complemen-
tary applications to support
real-time documentation
of the video images with
data from subsea sensors
and inspection person-
nel,” Kevin Taylor, FET’s
vice president of subsea
vehicles, told Offshore. “As
part of the update, V11’s
user interface has been
completely modernized.
Configuration of recording
quality, data paths, input
and output profiles can be accessed
easily, and channels can be developed
in a simple step-by-step process. There
are also new tools to flag potential
setting conflicts while improvements
have been made to allow video overlay
setup to be simpler.”
The new system is also support-
ed by new hardware architecture. A
motherboard and high-end graph-
ics card have been chosen alongside
a multi-channel video encoder card
MARCH/APRIL 2023 | www.offshore-mag.com
230304OFF34-35_sstb.indd 35
that has been selected for improved
performance and reliability.
“The subsea sector can present
complex and changing challenges, but
the V11’s robust and capable hardware
ensure the firm’s new software solu-
tion meets the demands,” Taylor said.
“With supply chain challenges plenti-
ful, FET believes any necessary chang-
es to its hardware architecture will be
more easily implemented than with its
legacy system.”
Deepwater intervention
Sonardyne shared a deepwater inter-
vention case study with Offshore, in
which Trendsetter Vulcan Offshore
(TVO) and Sonardyne collaborat-
ed on the use of subsea monitor-
ing technology.
TVO was hired to help an operator
fix a completed wellhead that had been
bent at a deepwater site. The wellhead
was in more than 2,000 m water depth,
and there were concerns other compo-
nents might have been damaged. TVO
was tasked with bringing it back to
a vertical position. This would allow
intervention access to the well for
COURTESY FORUM ENERGY TECHNOLOGIES
remediation and abandonment opera-
tions, so it could be permanently sealed.
A key challenge was to carry out this
work while preventing any further
potential damage to the wellhead.
TVO proposed a ring of six subsea
tensioning systems, mounted on suc-
tion piles positioned in a ring on the
seafloor around the wellhead. Each
one would be connected via a rope to
a TVO-supplied lower riser package
(LRP) installed onto the wellhead. By
carefully tensioning the ropes, they
would be able to then bring the well-
head back into an upright position.
TVO deployed a wireless, intel-
ligent, digital underwater monitor-
ing tool that provided near-real-time
inclination and tension data to the
operations team at the surface (about
three minutes delay). It comprised two
of Sonardyne’s Subsea Monitoring,
Analysis and Reporting Technology
(SMART) and six Compatt 6 transpon-
ders. The internal inertial measure-
ment unit in each SMART was used
to calculate pitch and roll data from
two points on either side of the LRP,
allowing TVO to calculate the well-
head’s bend angle in the local coor-
dinate frame. These data were then
transmitted acoustically, using the
SMART’s internal modem, to the sur-
face at three-minute intervals. The
Compatt 6s were interfaced with the
load cell shackles at each tensioner
point on the LRP and transmitted the
tension readings to the surface at less
than one-minute updates.
The righting operation took three
hours, using an ROV to tension the
winches at two key ten-
sioning units, one at a time.
In comparison, using the
alternative methods would
have taken days, according
to Sonardyne. Throughout
the project, the TVO team
and the operator were able
to view a constant near-re-
al-time visualization of the
inclination of the wellhead
and the tension that was
being applied at each ten-
sioning system. This was done via a
TVO-developed internet-based dash-
board, so any member of the wider
team, including the operator, could
watch from anywhere in the world.
After righting the wellhead, the
tensioning and monitoring system
was kept in place to allow safe inter-
vention and final abandonment oper-
ations to be completed, at which point
the data transmission rates were
reduced to once every few hours. ●
OFFSHORE 35
3/29/23 3:16 PM
 NATIONAL OCEAN INDUSTRIES ASSOCIATION
The future of offshore
energy is today
ERIK MILITO, President, NOIA
O
TC brings together the cutting edge
in innovation and technology for off-
shore energy. Thousands of companies
come together under one tent and share
familiar themes of how they are leaning
into the energy transition and
finding ways to reduce emis-
sions. The world should cele-
brate the remarkable vision of
the future that energy compa-
nies are building today.
While there are many famil-
iar faces at OTC, new themes
and focus areas can be found
throughout the conference.
Focal points with names like the OTC
Energy Transition Pavilion and the OTC
Offshore Wind Lounge would have been
novel concepts just a few years ago. Today
they are simply a reflection of the offshore
energy space. The energy transition – or
addition – is ongoing, and offshore energy
companies are leading the way.
The National Ocean Industries Asso-
ciation (NOIA) recently released its third
Environmental, Social, and Governance
(ESG) report, NOIA ESG Network 2023
Report: A Focus on Emission Reductions.
As reflected by its title, the report includes
sixteen case studies of emissions reduc-
tions from NOIA members. Importantly, the
case studies do not come from just one
industry segment – they represent virtual-
ly the entire offshore energy supply chain.
The NOIA ESG report underscores the
boundless creativity companies apply
towards emission reductions. From new
low-emission fuel additives for drillships;
to enhanced compressors on offshore
platforms; to new connection systems for
subsea jumpers; to the electrification of
production systems, there is determined
and measurable progress in reducing
36 OFFSHORE
230304OFF36-43_noia.indd 36
emissions from operations that already
have a low GHG footprint.
The American offshore is producing
more energy with a smaller footprint and
lower emissions. The carbon intensity of US
Gulf of Mexico is one half of the intensity of
other producing regions. To put
it another way, without US Gulf
of Mexico oil and gas produc-
tion, global emissions would
actually increase. Likewise, 18
deepwater U.S. Gulf of Mexico
facilities, which equate to about
the physical size of only nine
city blocks, produce about
the same amount of oil as the
entire state of North Dakota.
As reflected by OTC and demonstrated
by NOIA members on a daily basis, the off-
shore energy sector as a whole operates in
a manner that is enabling the low carbon
energy transition. The lines between “oil
and gas” and “renewable energy” are over-
lapping at a rapid rate.
The offshore oil and gas industry helped
build the first US offshore wind farm off-
shore Block Island, Rhode Island. The syner-
gy between offshore oil and gas and wind is
beneficial to everyone. The offshore oil and
gas industry is now involved in other wind
projects up and down the Atlantic Coast.
New offshore wind projects under
development dot the US East Coast and
the first lease sales have been held along
the Pacific Coast. Expanded American off-
shore wind development could spur $120
billion in new investments.
Similarly, carbon sequestration is an
innovative approach to mitigating green-
house gas emissions, and it is a criti-
cal tool for achieving climate change
ambitions and goals that have been
established by diverse stakeholders
around the world.
www.offshore-mag.com | MARCH/APRIL 2023
With vast geologic prospects for CO2
storage, the US Gulf of Mexico could very
well soon be the leader in CCS. The region
benefits from having an extensive and
established energy infrastructure along
the Gulf Coast and throughout the outer
continental shelf; a proximity to industrial
centers for capturing emissions; and an
assessable engineering and energy knowl-
edge base and workforce, along with asso-
ciated RD&D capabilities. Early projections
show that 50 million tons of CO2 annually
could be stored beneath the Gulf of Mexico
by 2030, more than all the CCS currently
operating globally.
The success of the offshore energy
sector means that all forms of energy can
be produced in a reliable, responsible, and
affordable manner. Conversely, removing
or restricting investment opportunities for
the offshore oil and gas sector would elim-
inate a key source of engineering exper-
tise, not to mention RD&D funding that
can engineer, scale, and deploy the solu-
tions to many of the technical challenges
currently associated with decarbonization
efforts. The success of these decarboniza-
tion efforts depends upon continued reve-
nue generation from the oil and gas sector.
For more than 50 years, NOIA has worked
tirelessly and successfully to advocate on
behalf of the American offshore energy
industry before policymakers and other
stakeholders. From educating Congress,
including testifying before committee hear-
ings and engaging directly with members
of Congress; to building the public record
of our industry through regulatory engage-
ment and media outreach; to holding indus-
try-wide forums and workshops, NOIA has
been the leading voice and advocate for the
American offshore energy sector.
As we look around OTC this year, and
as we see the energy challenges before us
intersecting with the innovation and know-
how of the offshore energy industry, NOIA
continues to stand out as a credible voice
in advancing the innovative solutions to
deliver affordable, reliable, and low carbon
energy that we all rely upon for a high qual-
ity of life. ●
3/29/23 3:16 PM
 CONNECTING THE
ENERGY FUTURE
Technologies & Services for a Multi-Source Energy Mix

Offshore Technologies & Services

Onshore Completions
Deepsea Minerals
Offshore Wind

230304OFF36-43_noia.indd 37
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4:21 PM
PM
 NATIONAL OCEAN INDUSTRIES ASSOCIATION
Energy and innovation
meet offshore
PAUL DANOS, Owner and CEO, Danos, and NOIA chairman 2022-2023
A
merica’s offshore is a remarkable
place where the world can turn
to for its energy needs of today and
tomorrow. While the offshore energy
story began in oil and gas produc-
tion, it has evolved into a
diverse hub of energy solu-
tions. Relentless innovation
has enabled the of fshore
energy sector to lead the
energy evolution through
low-carbon oil and gas, off-
shore wind, carbon seques-
tration, hydrogen, and more.
American industry contin-
ues to play a crucial role in providing global
energy solutions, and we can continue to
do so only through the continued safe and
responsible development of our domestic
offshore oil and gas resources.
In many ways, my family’s company –
Danos – and the National Ocean Indus-
tries Association (NOIA) share a mirrored
trajectory of the offshore energy sector.
Danos is a family-owned and managed
energy service provider founded in 1947. It
started as a small tugboat company sup-
porting Gulf of Mexico oil and gas opera-
tions while conducting business from my
grandmother’s kitchen table. Today, Danos
has a global presence and has expanded
into renewable energy while still offering
an extensive range of integrated offshore
(and onshore) oil and gas services.
Similarly, NOIA began more than 50
years ago as the voice of the American
offshore oil and gas industry in Washing-
ton, DC. Today, NOIA is the only nation-
al trade association representing the full
spectrum of companies involved in the
offshore energy transition, including oil
and gas, wind, carbon sequestration,
and hydrogen.
38 OFFSHORE
230304OFF36-43_noia.indd 38
When you walk into OTC, you’ll see that
the oil and gas industry has evolved tre-
mendously since my grandfather found-
ed Danos; the energy transformation is
well underway. Many technologies on
display are beyond what we
could have imagined even ten
years ago. Innovation is low-
ering costs while shrinking an
already small carbon footprint
and improving safety.
Technology advances mean
we can more safely produce
oil and gas from deeper
depths, withstanding higher
temperatures and greater pressures. Inno-
vation in technology resulted in the US Gulf
of Mexico producing 1.78 million barrels of
oil per day in November 2022, significantly
up from the lows of the pandemic.
Gulf of Mexico production is provided
for in a smart and sustainable way. Incred-
ibly, just 18 deepwater Gulf of Mexico facili-
ties – the equivalent combined size of nine
city blocks – are producing about the
same amount of oil as the entire state of
North Dakota.
Studies, including from sources such as
Wood Mackenzie and the US Department
of the Interior, have repeatedly found that
global emissions would be higher with-
out Gulf of Mexico oil and gas production.
As Wood Mackenzie found, “Removing or
handicapping a low emitter hurts the col-
lective global average.” The world needs
more American offshore oil and gas proj-
ects to help meet society’s energy, eco-
nomic, and climate demands.
Thankfully, energy production is no
longer an “either/or” proposition. Offshore
energy production is a “both/and” opportu-
nity underpinned by reliability, affordability,
and low-carbon production.
www.offshore-mag.com | MARCH/APRIL 2023
The offshore energy industry has unpar-
alleled expertise and experience deploy-
ing and scaling technologies at levels
needed to break through new energy
frontiers, including achieving decarbon-
ization objectives. This innovative spirit
also means greater attention and invest-
ment in evolving energy segments, such
as offshore wind and offshore carbon cap-
ture and storage.
The offshore environment continues to
be a unique space. The logistics and skill-
sets necessary to build something in a
marine environment are mindboggling. The
energy transition can only continue if the
same companies that built up the American
offshore oil and gas industry can continue
to exist and thrive through new access and
new leasing opportunities. Without these
companies, no one will be left to build and
service new energy projects.
While the US has two Gulf of Mexico
lease sales scheduled for 2023, there is
no active program in place and no lease
sales are scheduled beyond this year.
These decisions will affect the entire
country by increasing carbon emissions
through the outsourcing of production,
sending jobs overseas, raising the cost of
energy for Americans, weakening nation-
al security, and removing a significant
source of conservation funding for pro-
grams like the Land and Water Conser-
vation Fund which help mitigate climate
change impacts.
Without continued US offshore oil and
gas leasing, we risk losing high-paying
jobs, investments, and spending that sup-
ports countless Americans and commu-
nities. At the same time, the development
and deployment of innovative technolo-
gies across the energy sector are at risk.
Our industry has the infrastructure, work-
force, and capital to spur the low-carbon
energy transition, but the simple econom-
ic reality is that continued offshore oil and
gas leasing is needed to get there.
If American energy policy comes togeth-
er, the sky is the limit on the energy, eco-
nomic, and climate solutions our industry
can deliver. ●
3/29/23 3:16 PM
230304OFF36-43_noia.indd 39 3/31/23 10:44 AM

NATIONAL OCEAN INDUSTRIES ASSOCIATION
Following are the NOIA Officers and the members of the NOIA Executive Committee
and the NOIA Board of Directors during the April 2022 through April 2023 term.
Please note: The NOIA Chairman and Vice Chairman also serve on the NOIA Executive
Committee. In addition, NOIA Executive Committee members also have a seat on the
NOIA Board of Directors.

CHAIRMAN Paul Danos | Danos LLC

VICE -CHAIR Starlee Sykes | bp

Officers PRESIDENT Erik Milito NOIA

TREASURER Casey Stewart Vice President & Controller | Kosmos Energy GOM
SECRETARY Catherine Brown COO | NOIA

Executive Committee Board of Directors

Pierre Bang | TotalEnergies E&P USA
Chris Bradshaw | Bristow Group
Lyndal Cissell | SLB
Richard Clark | Kosmos Energy
Tim Duncan | Talos Energy Inc.
Chris Golden | Equinor
Lee Jackson | Jackson Offshore Operators
Jonathan Landes | TechnipFMC
William Langin | Shell
Mike McCauley | Arena Offshore, L.P.
Erik Oswald | ExxonMobil
Court Ramsay | Aries Marine
Steve Weyel | EnVen Energy Resources
David Barton | Marubeni Oil & Gas
Lanis Belaire | Pharma-safe
Craig Broussard | Subsea 7
David Cherechinsky | DistributionNOW
W. David de Roode | Lockton Partners, LLC
Loren Fowler | Heerema
Marine Contractors
John Gellert | SEACOR Marine Inc.
Tony Gray | FUGRO USA
Brent Gros | Chevron
Eric Hambly | Murphy Exploration
& Production
David Hardy | Orsted
James Hinch | PHI
Kristian Johansen | TGS
Richard Kirkland | Cantium
Cliffe Laborde | Laborde Marine
Rod Larson | Oceaneering International
Terry Lechinger | Stress Engineering
Joe Leimkuhler | Beacon Offshore Energy
Richard Lynch | Hess
Jonah Margulis | Mainstream
Renwable Power
Shiva McMahon | Woodside Energy
Jennifer Medcalf | The Reach Group
Chet Morrison | Morrison Energy Group
Scott Moses | Oil States International
Bill New | New Industries
Joe Pope | Valaris
David Reid | National Oilwell Varco
Mark Richard | Halliburton
Niloy Shah | Ridgewood Energy
John Smith | QuarterNorth Energy
Clay Thompson | Oxy
Jim Wicklund | Stephens Investment
Eric Zimmerman | LLOG

NOIA Member List by Segment Dupre’ Interests LLC New Industries

DRILLING CONTRACTORS
Blake International Rigs LLC
Enterprise Offshore Drilling
Noble Corporation
Stena Drilling Ltd.
Transocean
Valaris plc
ENERGY TRADE PUBLICATIONS
Compass Publications
Endeavor Business Media
Gulf Publishing Company
Hart Energy
FINANCE, CORPORATE, &
PROFESSIONAL SERVICES
Advisian Worley Group
Alliant Energy & Marine
Audubon Engineering Company
Booz Allen Hamilton
CAC Specialty
Endeavor Management
Global Risk Solutions, Inc.
Lockton Global Energy & Marine
McGriff, Seibels &
Williams of Texas
Mecuria Energy Trading SA
PPHB
Preng & Associates LLC
Regions Bank
RLI Insurance Company
Stephens
GEOPHYSICAL &
SEISMIC SERVICE
Fugro USA Marine, Inc.
TGS
LAW & LOBBYING FIRMS
Beveridge & Diamond
Blank Rome
Brownstein Hyatt Farber Schreck
Jones Walker Oceaneering International
Looper Goodwine Quality Companies
MANUFACTURER & SUPPLIERS Sapura USA Holdings, LLC
Chickasaw Distributors Subsea 7
DistributionNOW NONPROFITS (RESEARCH
Drilling Innovative Solutions, LLC AND EDUCATION)
National Oilwell Varco Gulf Offshore Research Institute
Oil States International NONPROFITS
(SERVICE PROVIDER)
TechnipFMC
America Bureau of
Vallourec
Shipping (ABS)
MARINE CONSTRUCTION HWCG
Aker Solutions Marine Spill
Boskalis Offshore Response Corporation
Danos OFFSHORE SERVICE VESSELS,
Gulf Island Fabrication, Inc. AVIATION & SHIP BUILDERS
Heerema Marine Contractors Airbus Helicopters
Intermoor Aries Marine Group
Kiewit Energy Group Bristow Group
Morrison Energy Group Canal Barge Company, Inc.

40 OFFSHORE www.offshore-mag.com | MARCH/APRIL 2023

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 Society can reach ambitious emissions reduction targets
through American offshore energy.

The National Ocean Industries Association (NOIA) members are leading the
development and deployment of climate change solutions and GHG emission
reductions. From responsibly developed oil and gas in the Gulf of Mexico to rising
offshore wind to emerging energy segments, such as carbon capture and storage,
NOIA members are transforming the global energy landscape.

Through initiatives like the NOIA Environmental, Social & Governance Network, NOIA
unites the interests of the entire offshore energy ecosystem.

We encourage you to join NOIA today. Together, our voice will successfully promote
the durable energy solutions so vital for lifting society in a safe and environmentally
sustainable way.

National Ocean Industries Association: Become a member and join

the voice of the offshore industry today!

TO LEARN MORE VISIT NOIA.ORG

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5:33 PM
PM
 NATIONAL OCEAN INDUSTRIES ASSOCIATION

Hornbeck Offshore Services ExxonMobil Upstream OTHER OFFSHORE PRT Offshore

Jackson Offshore Operators
Kilgore Marine
Laborde Marine LLC
PHI Aviation, Inc.
RLC Helicopters
SEACOR Marine Inc.
Tidewater Inc.
Westwind Helicopters, Inc.
OIL, GAS & WIND
bp Exploration & Production
Equinor
Shell Energy Resources Company
TotalEnergies E&P USA
OIL & GAS
PRODUCERS & OPERATORS
Arena Offshore
Beacon Offshore Energy LLC
Cantium, LLC
Chevron Corporation
ConocoPhillips
Business Development
Hess Corporation
INPEX America’s Inc.
Kosmos Energy GOM
LLOG Exploration Company LLC
Marubeni Oil & Gas
Murphy Exploration &
Production Company
Occidental
Peregrine Oil & Gas
Petro-Hunt, L.L.C.
Promethean Energy Corporation
QuarterNorth Energy
Red Willow Production Company
Renaissance Offshore, LLC
Repsol E&P USA LLC
Ridgewood Energy Corporation
Talos Energy Inc.
Walter Oil & Gas Corporation
Woodside Energy
DEVELOPER
SLB
Moana Minerals Stress Engineering Services
PORTS Texas Institute of Science
Greater Lafourche The REACH Group
Port Commission Tiger Rental Group
SERVICE Trendsetter Engineering
American Pollution Control United Vision Logistics
Corporation Upstream Engineering, LLC
ATPI
INDEPENDENT
Continental Shelf Associates & CONTRACTORS
Subsidiaries
Angelle Partners, LLC
CORE Laboratories Energy Maritime Associates
Delmar Systems
LIONBERGER
Exmar Offshore Company Roos Consulting Group
Gibson Applied Technology &
Engineering LLC WIND DEVELOPERS
Halliburton Avangrid Renewables
Island Operating Ørsted
Ocean Flow International LLC US Mainstream
Offshore Energy Services Renewable Power Inc.
Pharma-Safe Industrial US Wind, Inc.
Services, Inc. Vineyard Offshore

Talos Energy is a leading energy

company focused on offshore oil and
gas exploration and production as well
as the development of future carbon
capture and storage opportunities
in the United States Gulf Coast, Gulf
of Mexico and offshore Mexico.
We provide safe, reliable and
responsible energy production
that powers our world and delivers
energy prosperity to modern life,
while simultaneously applying our
core skill sets to develop large-scale
decarbonization projects to reduce
industrial emissions.

NYSE: TALO

WWW.TALOSENERGY.COM

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 NOIA: The Voice of the Offshore
The National Ocean Industries Association (NOIA) was founded in 1972 to be the voice of the offshore energy industry. Today,
NOIA represents more than 100 companies, from small family-owned suppliers to multi-national operators. NOIA’s diverse
membership make us the only national trade association solely representing every aspect of offshore energy development.

The NOIA Mission The NOIA Objectives

NOIA represents and advances a
dynamic and growing offshore energy
industry, providing solutions that support
communities and protect our workers,
the public and our environment.
The NOIA Vision
NOIA is the sought-after and credible
voice, advocate and forum for uniting
and advancing the interests of the
offshore energy industry, recognized
for promoting solutions that provide the
energy vital for lifting society in a safe
and environmentally sustainable way.
• To promote the interests of the members of the offshore energy industry
• To educate the public and policy makers with scientifically grounded
information about the industry and its impact on our everyday lives
• To serve as a resource for the government and other stakeholders
• To influence public policy in support of the offshore energy industry
• To promote the role of a competitive, fair and free market in the
development of offshore energy resources
• To facilitate a meaningful energy dialogue from diverse perspectives
• To be a learning organization and foster the mutual improvement of its
members, including safety and environmental performance, through
collaborative industry programs and efforts
• We strive to contribute solutions and best practices to optimally balance
societal and environmental needs for meeting the climate challenge.

The Global Leader in Innovative and Sustainable Vertical Flight Solutions

Take to the skies with confidence and peace of
mind by partnering with Bristow for all your
vertical flight needs. Our extensive expertise in
offshore energy transportation, medical
evacuations, and search and rescue assures a
reliable and integrated flight solution, with an
unwavering commitment to safety, every time.

Follow us on

www.bristowgroup.com

MARCH/APRIL 2023 | www.offshore-mag.com

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 FRANCE

Eiffage Métal
materials, steel and certain compo-
nents, and for assembly, welding and
mechanical completion of the three

scaling up capacity
floaters at the company’s yard nearby
in Fos sur Mer. One of the main con-
struction challenges at Fos has been

for future floating

the 45-m height of the floaters and
the need for assembly at height, said
Arnaud De Villepin, Director Energy &
Industry for Eiffage Métal. “In front of

offshore wind parks

the floaters there was a large amount
of scaffolding at one point: it is not like
working on platform topsides where
access is relatively straightforward.”
Around 150 people have been involved
Company is supporting two pioneering floating in the project at Fos: in addition, there

offshore wind schemes in the Mediterranean Sea have been local ground reinforcements
at the yard and adaptations to the
quay for the load-out operation, now
Jeremy Beckman, EDITOR–EUROPE which comprise three Siemens wind expected to take place in May. At the
turbines, each mounted on triangu- quayside the three completed floaters

F
rance’s government is working to lar floating structures measuring 45 will be loaded onto a semisubmersible
speed up the permitting/consul- x 90 x 90 m (147 x 295 x 295 ft), and barge which will be ballasted off-
tation process for new offshore associated power cables that will con- shore until the structures are floating
wind farms. Among those monitor- nect to the local grid. The floaters are in the water. They will then be taken
ing developments is engineering and based on a TLP concept (Float4Wind) by tugs to another quay (‘Gloria’) 2 km
construction group Eiffage Métal, sup- developed by SBM Offshore and IFP from the yard where EDF will install
plier of the foundations for the coun- Energies Nouvelles and will be moored the turbines, blades and towers in the
try’s first fixed offshore wind farm, via a tension leg arrangement. The central columns, followed by a further
Saint-Nazaire, which started operat- dynamic power cables will be capa- tow to the PGL offshore site, 20 km
ing last summer in the Loire-Atlan- ble of adapting to movements induced (12.4 mi) away for connection to the
tique region. Currently, the company by the swell and local currents. pre-laid cables.
is supporting two pioneering floating Eiffage Métal is a subcontractor to Fos’ second floating offshore wind
offshore wind schemes in the Medi- SBM, responsible for procuring raw project is Ocean Winds’ Les Eoliennes
terranean Sea and one fixed wind
development off western France.
With a steady stream of French proj-
ects set to go forward later this decade,
the company is considering ways of
growing its local production capaci-
ty, including industrialization of float-
er fabrication for larger-scale floating
offshore wind parks.
Provence Grand Large (PGL), a
pilot 25-MW development led by EDF
Renewables, in partnership with
Enbridge Eolien France, is locat-
ed 17 km from Port Saint Louis du
Rhône in the Golfe de Fos off the
central south coast. SBM Offshore is Assembly of components for the Provence Grand Large floating offshore wind project
the EPCI contractor for the facilities at Fos sur Mer. PHOTOS COURTESY EIFFAGE MÉTAL

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 Flottante du Golfe de Lion (EFGL), com- In March, France’s government was in Brest or Cherbourg. Towards the end
prising three 10-MW wind turbines due to announce the winning bid for of 2023, an announcement is expected
on three semisubmersible Windfloat the Normandie/Centre Manche fixed on South Brittany, France’s first large-
units designed by Principle Power wind development offshore Caen, scale floating wind development gen-
Inc. In this case, Eiffage Métal is the northern France. Following the con- erating around 250 MW.
EPCI contractor for the floaters which sultation process, construction will Aside from Noirmoutier, Smulders
will each measure 75 x 75 x 25 m (246 likely start in 2027. To support its pitch Hoboken is building almost 300 tran-
x 246 x 82 ft). However, assembly is for involvement, Eiffage Métal may sition pieces (TPs) for the three phases
behind schedule due to the impact invest in new local construction sites of the Dogger Bank cont. on p. 63
of the war in Ukraine on global steel
supplies. Earlier this year Fos received
the bracings but was still waiting for
the buoyancy elements to be shipped Eiffage Métal
from Eastern Europe. The completed
facilities will be installed in a marine Our name represents more
reserve in the Golfe de Lion nature
park: one of the three floaters will be than a hundred years of
fitted with a Biohut, an artificial fish experience acknowledged
habitat, to support biodiversity of spe- worldwide in the field of
cies in the project area. The floaters
will be positioned in a 2.9-sq km area, steel construction and
16 km offshore in 68-70 m water depth. civil engineering
“We are now considering concepts
structures.
for industrialization of the floater fab-
rication process, including modulari-
ty,” De Villepin said. “One of our sites
is better suited to production of the
cylinders while another is more suited
to bracings and assembly of floaters. Oil & Gas and Renewable
This could involve a further adaptation
to the quay and an extension at Fos,
For over fifty years, our
which is presently equipped to assem-
ble six to seven floaters. However, platforms, modules and
future, connected floating offshore living quarters enable oil &
wind farms could require assembly
gas companies to explore
of up to 20 floaters. We believe the
market in France and Italy will start and exploit oil & gas fields.
to take off from 2026 onwards.”
Late last year, Eiffage Métal secured
From 10 years, Eiffage has
a contract for Ocean Winds’ Îles d’Yeu
et Noirmoutier fixed wind development become the European
spanning an 83-sq km area up to 16.5 leader of the foundations
km offshore western France, in water
and the offshore
depths of 19-36 m. Subsidiary compa-
ny Smulders is manufacturing the tran- substations for offshore
sition pieces in Hoboken, Belgium for wind farms.
the 62 x 8-MW Siemens Gamesa wind
turbines. Deme, which will manage
transportation and installation, pre- Quality - Satefy - Environment
viously worked with Eiffage Métal on These are the essential priorities of our company, based on the expertise,
Saint-Nazaire where the monopiles competence, adaptability and dedication of our teams.
and foundations had to be drilled or
driven due to the occasionally rocky
www.eiffagemetal.com
seafloor. Noirmoutier’s seabed condi-
tions are similar.

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 THE ESG PLANNING GUIDE
FOR ENERGY PROJECTS
Summary
So, what are you going to do about ESG? Today’s project managers and
engineers better have a good answer!

ESG is a powerful concept that combines expectations for environmental (E)

and social (S) benefits with effective governance (G), to ensure those benefits
are achieved. How can project teams manage ESG with the same discipline,
structure, and consistency that characterize the way they manage safety, cost,
schedule, and quality? The answer lies in doing what teams do best: breaking
down the problem into manageable chunks, setting up a process everyone can
follow, working together to develop a plan to which all players can commit, and
then executing that plan.

This Guide is a methodology for doing exactly that. It is a workbook, filled

with predefined worksheets to be completed for each project. It provides a
structure for planning workshops to address each aspect of an ESG plan. In
addition to its use by project teams, this Guide can also be used by executives,
investors, lenders, or government agencies as part of due diligence to ensure
plans are in place to meet or exceed ESG requirements and expectations.

Questions Answered
• What, exactly, does ESG mean for project managers and teams?
• How do teams translate the broad goals of ESG into specific objectives?
• How do they develop a project ESG plan to meet these objectives?

Features and Benefits

• Tailored to the specifics of an energy sector engineering and construction project
• Provides critical thinking questions and predefined worksheets to facilitate the planning process for each project
• Practical guidance for preparing and leading ESG planning workshops
• An efficient way to prepare a Project ESG Development Plan at the start of the project, as well as a Project ESG Execution Plan at the
final investment decision

Print ISBN: 9781955578141

eBook ISBN: 9781955578158

More info. PennWellBooks.com

About the Author

Richard Westney is a director of R/MW Consulting, Inc., focusing on project
strategies to ensure that energy projects have a positive impact on the planet
and the people who live on it. Founder of the Westney Consulting Group Inc.,
(acquired by McKinsey & Company in 2019) he has over 40 years of worldwide
experience supporting major projects in the energy sector.
Project ESG
Widely recognized as a thought leader, Richard is the author or co-author of six books on project Explained &
management, cost, and risk. He holds a bachelor’s degree in mechanical engineering from City
College of New York, a master’s degree in management science from Rensselaer Polytechnic
Institute, and an executive MBA from Harvard Business School. He was inducted into the National
Applied!
Academy of Construction in 2016, and also received the Award of Merit from the Association for
the Advancement of Cost Engineering Intl., its highest honor.

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3/1/23 2:38 PM
 SPECIAL REPORT

2023 Energy
Transformation
Strategies
Offshore energy
industry's meticulous
methods for a
sustainable future
ILLUSTRATION 270028419 © MYKHAILO POLENOK | DREAMSTIME.COM

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 2023 ENERGY TRANSFORMATION STRATEGIES: Top
TopicTactics

PHOTO 265253524 © AZMAN MOHAMAD | DREAMSTIME.COM

Execs share their offshore oil and gas
methods for a sustainable future
Industry leaders reveal their main energy increase productivity and at the same time reduce emissions.
In the Gulf of Mexico, Hess used digital twins—a virtual model
transformation strategies currently designed to accurately reflect a physical platform—to enable
being implemented offshore process equipment condition monitoring and extend reliabili-
ty on key topsides equipment. From subsea to satellite, we are
COMPILED BY ARIANA HURTADO, Editor and Director of Special Reports enhancing environmental surveillance by testing and imple-
menting cutting-edge monitoring solutions including a 3D scan
and model of facilities to improve accurate identification of
Gerbert Schoonman
fugitive emissions; working with satellite and aerial providers
Senior Vice President, Production, Hess Corp. to monitor for environmental impact; and leveraging data con-

“W
e are focused on building a sustainable enterprise that textualization using emission data to minimize impact on the
helps meet the world’s growing energy needs in a environment and reduce emissions.”
safe, environmentally responsi-
ble, socially sensitive and profit-
Jean Paul Prates
able way. Offshore, across drilling
and completions, subsurface and President, Petrobras

“P
operations, we are leveraging data etrobras is committed to a transition to a low-carbon global
analytics, automation, machine economy, and it aims to provide society with affordable
learning and ar tificial intelli- energy through safe, efficient, low-cost operations, with lower
gence to make faster, better and emissions. To this end, we have implemented pioneering solu-
COURTESY HESS

data-driven decisions, and drive tions, adopted management indicators and been developing new
operational improvements. We are technology to ensure oil and gas is produced with low emissions.
also using new technologies to Some of our main solutions include initiatives to reduce gas

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 flaring; carbon capture, utilization
Bob Abendschein
and storage; methane detection
systems; all-electric systems (elec- Executive Vice President
trification for offshore platforms); and COO, Talos Energy

“T
gas recovery systems; energy effi- alos provides our customers

COURTESY TALOS ENERGY

ciency measures and projects to safe, reliable and responsible
COURTESY PETROBRAS

reduce emissions from refineries. energy by supplying oil and gas

Our Strategic Plan (2023-2027) con-
tinues to focus on value generation
and aims to increase the number of
projects on reducing carbon emis-
sions. US$3.7 billion on projects to help with the decarbon-
ization of operations (scopes 1 and 2) are planned, as well as
US$600 million toward the BioRefino Program. Petrobras will
be installing the first plant in the country dedicated entirely to
the production of 100% renewable diesel and aviation biokero-
sene (BioQAV), as well as other products with a lower carbon
footprint, in Cubatão [São Paulo, Brazil]. The company will be
using its technical capabilities to make a decisive contribution
to reducing greenhouse-gas emissions in the country.”
Adam Sheikh
Vice President of Decommissioning and
Energy Transition, Repsol Sinopec
from offshore basins in the Gulf of
Mexico, which ranks as one of the
lowest greenhouse-gas [GHG] emis-
sions intensity by global resource
type. Our infrastructure acquisition strategy and operated asset
base provide the scale necessary to employ measures to reduce
emissions cost-effectively and facilitate lower-cost subsea tie-
back investments with a lower emissions profile than construct-
ing a new platform. This strategy should further reduce our future
GHG emissions intensity. We are simultaneously applying our core
skill sets to develop large-scale decarbonization projects to per-
manently store industrial emissions (CO2) along the Gulf Coast
region to mitigate the potential effects of climate change. Our
Bayou Bend CCS project is the only offshore carbon sequestra-
tion lease in the United States, which was awarded by the State
of Texas General Land Office.”

“I
Tony Cudmore
t’s an exciting time to be part
of the energy sector. Repsol Executive Vice President Strategy and
Sinopec has been on a transfor- Climate, Woodside Energy

“I
mative journey over the past five n 2022 Woodside Energy under-
years. We’re now at a turning point took drone surveys on our oper-
COURTESY REPSOL SINOPEC

as the industry faces increasing ated floating production storage

energy challenges. Our aim is to and offloading facilities and off-
COURTESY WOODSIDE ENERGY

consistently deliver results against shore platforms in Western Aus-

our corporate strategy, which is tralia and the US Gulf of Mexico.
focused on three strategic themes: The use of innovative drone-based
safe and sustainable operations technology is intended to enhance
from our producing assets; efficient decommissioning and emis- location and quantification of
sions reduction; and driving our operations towards net zero. We key methane emission sources,
will focus on maximizing value from our assets whilst prioritizing enabling the prioritization of miti-
safe, sustainable oil and gas production. We aim to be the ‘best gation projects in our asset decarbonization plans. Woodside’s
in class’ for efficient decommissioning in the North Sea and sup- methane emissions were less than 0.1% of our production by
port the energy transition toward net zero. We are also explor- volume in 2021, already well below the Oil and Gas Climate Ini-
ing the opportunity to develop a green hydrogen production tiative (OGCI) 2025 methane intensity target of below 0.2%. In
and export facility in Scotland on the island of Flotta in Orkney. September 2022 we were also the first Australasian company
If successful, hydrogen produced from the Flotta Hydrogen Hub to sign the OGCI’s Aiming for Zero Methane Emissions Initiative,
has the potential to contribute to both Scotland and the UK’s committing to strive to reach near-zero methane emissions from
low-carbon ambitions.” our operated assets by 2030.” ●

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 2023 ENERGY TRANSFORMATION STRATEGIES: UK report
Offshore renewables and the UK oil
and gas industry’s energy transition
Challenges and solutions facing the offshore sector
ALIREZA MAHERI and EDDY WIFA, Centre for Energy Transition, University of Aberdeen
T
he energy transition or the move to net-zero, which essentially
seeks to balance the twin issues of energy security and cli-
mate change, is without a doubt very challenging for a variety of
reasons. The situation is further complicated by market forces,
energy crises and other geopolitical issues. Perhaps such diffi-
culty was the inspiration behind the recent cabinet reshuffle and
the creation of the Department for Energy Security and Net-Zero.
While the oil and gas industry has made and continues to make
meaningful contributions to the global energy mix, offshore wind
energy and other renewable energy sources are expected to bal-
ance the energy dilemma and indeed the trilemma. Significant
progress has been made in the deployment of offshore wind
energy in particular, though challenges remain. This article pro-
vides some insights into technical and regulatory barriers to find-
ing solutions.
The transition from offshore oil and gas to green energy also
includes the decarbonization of late-life operations using renew-
able resources and then repurposing offshore assets to produce
green energy or energy carrier products, such as hydrogen and
ammonia. The challenge is to develop a transition scenario that
leads to an optimum timeline for integration and then expansion
of renewables. It is in this sense that offshore wind is considered.
The UK has significant offshore wind and wave resources, allow-
ing it to take advantage of the opportunities for transition from off-
shore oil and gas to offshore renewable energy. As a result of recent
50 OFFSHORE
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technological advancements and investments, offshore wind has
achieved significant cost reductions with a levelized cost of energy
(LCOE) competitive with fossil fuels.
However, transition from offshore oil and gas to offshore renew-
able energy faces other challenges besides cost competitiveness,
such as intermittency associated with renewable resources,
hence, unreliability of the power supply. This leads to broader
energy security concerns, particularly if renewables are used as
the main source of energy.
Other challenges include integration to the current grid infra-
structures due to limited grid capacity as well as grid insta-
bility caused by the integration of large-scale intermittent
renewable power.
Energy storage systems
Resolving the above challenges would require integrating large-
scale energy storage systems, either in the form of storage hubs
or distributed and decentralized storage systems. This is a solution
that can address the reliability and energy security challenge. Bat-
teries and hydrogen as an energy carrier are the most promising
storage technologies. Hydrogen can be stored in large quantities,
hence benefits from economies of scale. Compared to batteries,
however, hydrogen has a much lower roundtrip efficiency, and there
are technological challenges in distribution and storage in large
quantities. Battery is a rapid-ramp technology that can address the
www.offshore-mag.com | MARCH/APRIL 2023
3/29/23 3:16 PM
 grid stability challenge. Hydrogen has the potential to address the
grid capacity challenge.
For instance, only 40% of the planned ScotWind offshore wind
capacity is considered in the national grid’s design. A large-scale
hydrogen production site powered by ScotWind paves the way for
full utilization of offshore wind energy with minimal investment in
the current grid infrastructure. Rapid-ramp storage (e.g., battery)
or production technologies can improve grid stability by scaling
load up or down in a timely manner.
Other offshore renewable energy sources are equally viable.
Compared to offshore wind, wave and tidal energy resources are
more predictable. Once integrated into the whole energy system
in large scales, grid stability issues are less relevant and the whole
energy system can be balanced with smaller utility scale energy
storage. On the other hand, these technologies are less mature and
have a higher LCOE. Therefore, significant investment is needed to
make them as cost effective as offshore wind.

Policy and regulations

From a governance and regulatory perspective, there are a vari-
ety of issues that must be considered as the industry seeks to
scale and maximize offshore wind energy resources, from marine
planning and ecological governance issues that seek to avoid
conflict with multiple sea users to transition issues that seek to
balance the benefits and burdens of transition. While government
and stakeholders are aware of these challenges—as seen in the
recently released Scottish Energy Transition Strategy and Just
Transition Plan, the offshore oil and gas workers remain less sati-
sifed as there are implementation challenges that may adverse-
ly affect them.
If offshore wind energy is expected to be the panacea to the
energy trilemma, then the industry must consider the challeng-
es of skills shortage and the impact on worker safety. In this last
regard, recent incidents have demonstrated the need for a recon-
sideration of the safety regime for offshore wind energy; research
at the Aberdeen University Centre for Energy Law suggests that
a safety case, analogous to that used in industries like offshore
oil and gas, would be appropriate.
Without a doubt, there is a growing realization that the energy
transition is nothing like flicking a switch and is indeed more
complicated than many expected. The situation is not made
any easier by the global energy crisis, the lingering effects of
the COVID-19 pandemic and other geopolitical issues. In the
UK, there is a lack of synergy and consistency in the govern-
ment’s approach, particularly between Westminster and Holy-
rood. Nevertheless, between scarce resources and political
will, one can only remain optimistic. ●

Alireza Maheri is a reader at the School of Engineering at University of Aberdeen,

with a research focus on the energy transition.
Eddy Wifa is an energy law lecturer at the School of Law, University of Aberdeen, with
particular research interest in offshore energy risk regulation and governance.

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 2023 ENERGY TRANSFORMATION STRATEGIES: Executive Insights
E&P company puts
heavy focus on CCS
Neptune Energy executive details
its CO2 storage plans
ARIANA HURTADO, Editor and Director of Special Reports
I
nternational independent E&P company Neptune Energy start-
ed the year off strong with multiple announcements on its CO2
storage initiatives.
Neptune and partner Horisont Energi entered into an option
agreement in early January on the location of an onshore ter-
minal for the Errai carbon capture and storage (CCS) project in
Norway. Neptune has a 40% owner share in the Errai project. The
receiving terminal for intermediate onshore storage of CO2 will
be located in Gismarvik on the west coast of Norway. From here,
Neptune said carbon would be transported through pipeline to
the North Sea, where it would be injected and permanently stored
in an offshore reservoir. Errai is the first commercial CO2 storage
project in Norway.
“Together with Horisont Energi, Neptune submitted an applica-
tion for the storage licence in December last year,” Odin Estensen,
managing director for Neptune Energy in UK & Norway, told
Offshore. “It is expected that the Norwe-
gian Ministry for Petroleum and Energy
will award licences before summer.
We are confident that we have a good
application, but there are other compet-
itors for this licence so we take nothing
for granted. Meanwhile, we are matur-
ing the concept by running a number of
studies with onshore and offshore con-
tractor partners.”
Moreover, Horisont and Neptune
signed a memorandum of understand-
ing with E.ON in late February with the
aim to develop a European CCS value Odin Estensen
chain. The agreement covers several
areas such as project financing, funding and the development
of a complete value chain for CO2 handling. If Horisont and Nep-
tune’s application for CO2 storage for the Errai project is awarded,
the intention is that this will be the first joint project.
Shortly after that company update, Neptune and CapeOme-
ga announced NoordKaap, a project concept for a cross-bor-
der CO2 storage solution for industrial emitters across Europe.
According to Neptune, NoordKaap would involve transporting
52 OFFSHORE
230304OFF47-62_ETS SR.indd 52
CO2 via vessels suitable for directly injecting the CO 2 at off-
shore locations and for terminal offloading. In addition, RWE has
signed a letter of intent with CapeOmega and Neptune to assess
the possibility to ship green CO2 from their biomass Eemshav-
en facility for offshore storage in the Dutch North Sea. Noord-
Kaap will examine the potential for a network-based approach to
CCS via marine transport, and it would provide access
to CO2 subsurface storage sites offshore the Nether-
lands and Norway. NoordKaap is scheduled to be oper-
ational in 2028.
On Feb. 28, Sval and Neptune made an announce-
ment regarding an application for a CO2 storage license
in the Norwegian North Sea. Securing the license would
enable the companies to proceed with the Trudvang proj-
ect, which has the potential to store up to 9 MMtonnes
of CO2e per year equal to about 20% of Norway’s total
annual emissions. The Trudvang project comprises cap-
ture of CO2 by multiple industrial emitters in Northern
Europe and the UK, shipping of liquid CO2 from export
terminals to an onshore receiving terminal in the south-
west of Norway, and transport via a purpose-built pipe-
line to the Trudvang location for injection and permanent storage.
The Trudvang storage license is located in the Norwegian North
Sea about 200 km from the coast.
Furthermore, Neptune and its partners are currently develop-
ing the L10 CCS project in the Netherlands, which could store
up to 5 mt of carbon per year in the first phase of development.
Neptune also is pursuing CCS storage and appraisal licences in
the UK and in Norway.
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3/29/23 3:16 PM
 “Our strategy is to build a competitive CO2
storage portfolio in the North Sea by 2030,”
Estensen said. “The L10 CCS project in the
Netherlands is the most mature, but we
have also applied for new storage acreage
in the UK CCS licensing round. In Norway
we hope to mature at least two more stor-
age applications by the end of 2023.”
Decarbonization strategies
“Neptune’s integrated energy hub strategy
provides an opportunity to drive offshore
decarbonization by extending the life of off-
In late 2022, the shore assets and repurposing them to facil-
UN’s Environmental
Program awarded itate CO2 storage and hydrogen production,
Neptune the Gold using domestic, lower carbon intensive gas
Standard status for or wind power,” Estensen explained. “By
its plans to cut extending field life, electrification could
methane emissions become more economic, helping decar-
from its operations.
COURTESY NEPTUNE
bonize existing production further.”
ENERGY This strategy, he added, builds on the
company’s experience with CCS in the
Netherlands and Norway.
“At 6kg CO2/boe, the carbon intensity of Neptune’s operated
portfolio is already among the lowest in the sector and ahead of
the industry average of 15 kg CO2/boe,” he said. “The methane
intensity of our operated production is 0.02%, below the industry
average of 0.20%, and Neptune remains on target to reach net
zero methane emissions by 2030.”
The company aims to store more carbon than it emits, and from
the use of its sold oil and gas products, by 2030. “We know that
gas will continue to play a crucial role in decarbonization global-
ly, while also being vital for energy security,” Estensen said. “Our
gas-weighted portfolio positions us well, and we will use this to
integrate energy systems, increasing CO2 storage, electrification
and hydrogen production.”
In November 2022, the UN’s Environmental Program awarded
Neptune the Gold Standard status for its plans to cut methane
emissions from its operations.
“The Gold Standard status recognizes our robust plans to report
and reduce methane emissions for our operated and non-operat-
ed assets by 2024 and 2026, respectively,” Estensen said. “We are
taking action as we recognize that reducing methane emissions is
one of the most effective ways to limit near-term climate change.
Although short-lived in the atmosphere, methane is a potent
greenhouse gas, retaining more than 80 times more heat than
CO2 in a 20-year timeframe. We already have an industry-leading
low-methane intensity, which refers to methane emissions from
our operated assets as a percentage of gas exported.”
The company’s actions to reduce methane include reducing
routine flaring. Neptune also supports the World Bank’s Zero Rou-
tine Flaring by 2030 initiative and conducts leak detection and
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230304OFF47-62_ETS SR.indd 53
repair programs to reduce fugitive emissions. In addition, the com-
pany is working to enhance methane detection and reporting.
“During 2022, specialists working for the Environmental Defense
Fund completed an evaluation of methane emissions data gath-
ered from our Cygnus platform in the UK,” Estensen said. “We plan
to conduct further studies in the UK and Norway in 2023 so we
can identify an accurate benchmark for measuring total methane
emissions and determine what action we can take to reduce them.”
Gjøa project updates
Neptune was recently awarded PL1180 in the Gjøa area and PL1179
in the Fram area via the Norwegian Ministry of Petroleum and
Energy’s APA 2022 licensing round. The license awarded in the
Gjøa area has a one-year work program consisting of reprocess-
ing the seismic to mature prospects in the area for a potential tie-
back to the Gjøa platform. The final drill decision will be taken in
the beginning of 2024. Estensen said the license awarded in the
Fram area should be viewed as more like an extension license
to Fram PL090.
At its operated Gjøa asset in the North Sea, the company is col-
lecting all the gas that during normal operation is being diverted
to the atmospheric vent system and recompressing it back into
the process, Estensen explained. In addition, the company is reg-
ularly using infrared camera technology to detect and remove any
small diffuse gas leaks that can occur within process facilities.
“During the coming years, we’re also implementing new tech-
nology for the gas seals on the compressors where current seals
depend on a certain positive flow of gas to operate correctly,” he
added. “Regular monitoring for methane over our facilities through
the use of drone technology carrying detection systems is also part
of the toolbox developed over the last couple of years.”
Hydrogen developments
The PosHYdon project in the Dutch North Sea is said to be the
world’s first offshore green hydrogen pilot on a working platform.
Trials of the PosHYdon pilot, to be hosted on the Neptune-operated
Q13a-A platform, are designed to prove the feasibility of integrating
offshore wind, offshore gas and offshore hydrogen.
“As it’s the world’s first pilot on a working platform to integrate
three offshore energy systems (gas, wind and green hydrogen),
safety studies were the priority. Now we’re working with the Dutch
Ministry of Economic Affairs and Climate Policy to increase the
percentage of hydrogen in the existing gas grid,” Estensen said.
“PosHYdon is also teaching us valuable lessons that we can lever-
age in future demonstration projects, like H2opZee, toward large-
scale green hydrogen production in the North Sea.”
Neptune and RWE signed a joint development agreement in
early 2022 to develop the H2opZee offshore green hydrogen proj-
ect in 2030. H2opZee is a demonstration project that aims to build
up to 500-MW electrolyzer capacity in the North Sea to produce
green hydrogen using offshore wind. The hydrogen will then be
transported to land through an existing pipeline. ●
OFFSHORE 53
3/29/23 3:16 PM
 2023 ENERGY TRANSFORMATION STRATEGIES: Decarbonization

Offshore industry transitions to renewables

and carbon reduction strategies
BV has a positive outlook for the hydrogen, created through steam methane reforming combined
with CCS, as a more viable and economic solution while technol-
emergence of viable solutions to reduce ogy development continues.

the industry’s carbon emissions Carbon reduction technologies and strategies

MARIE-FRANCOISE RENARD, Bureau Veritas To limit the impact of their carbon-heavy supply chains and pro-
duction methods, oil and gas companies are adopting carbon

T
he global investment portfolio for traditional oil and gas is
expected to continue until 2050 due to high oil prices and lim-
ited regulatory obstacles encouraging continued exploration and
development. Due to natural declines in existing production sourc-
es, investment in upstream oil and gas will remain necessary for
the next three decades. However, low-carbon initiatives are already
emerging, indicating a shift toward more sustainable practices.
Investment: upstream oil and gas vs renewables
The Energy Industries Council (EIC) database reveals that the capex
funnel for upstream oil and gas projects in 2023 is still twice that of
renewables. Nonetheless, there is a positive outlook for renewable
investment, with a projected total capex of $3,263 billion compared
to $2,905 billion for upstream oil and gas projects by 2030. The
forecast for 2050 is that almost half of the global energy mix will be
renewable, with a capex of $1,438 billlion, well above upstream and
midstream oil and gas projects combined ($325 billion).
Renewable energy sources
Oil and gas firms are investing in renewables like solar and off-
shore wind and exploring other clean energy options such as
green and blue hydrogen, carbon capture and storage (CCS), and
bioenergy. However, green hydrogen production via water elec-
trolysis is still in its infancy, leading some experts to see blue
CAPEX 2030-2050
($Millions)
5%
6% (109670.00)
(120035.00)
7%
(147187.00)
7% Renewables
(159461.00)
Upstream
8% 67%
COURTESY BUREAU VERITAS
reduction technologies and strategies. These include electrifying
assets via power from shore or off-grid solutions like offshore wind
turbines, flare optimization technology, zero-leak valve manage-
ment, fugitive emission reduction, and supply chain management
regarding Scope 3 emissions.
CCS
CCS technology supports the offshore oil and gas industry in
reducing carbon emissions. While CCS capex ($109 billion) is less
than hydrogen ($120 billion) in 2030-2050, it is gaining momen-
tum. For instance, Malaysia is developing the world’s largest off-
shore CCS project, and Indonesia has unveiled 16 CCS projects,
including bp’s Tangguh and Carbon Aceh. Denmark and Norway
have also issued permits for CCS exploration, with the Northern
Lights CCS project being hailed as a trailblazer.
Sustainability strategies
The industry is taking a holistic approach to environmental man-
agement by focusing on the entire supply chain. Bureau Veritas
(BV) is supporting the oil and gas sector with services to promote
long-term sustainability strategies. To address methane losses
from joints and flanges, companies are increasingly engaging in
methane slip detection together with mitigation and control pro-
gram development, services which BV provides for onshore and
offshore installations, as well as trading vessels.
From experience in the shipping industry, BV has developed
rules and notations that incentivize sustainable floating units
and features. BV has a dedicated team in place to support cli-
ents in making environmentally conscious decisions and has seen
increased demand for Concept Approval as well as New Technolo-
gy Qualification services, which follow a methodological approach
with Guidance Note (NI525) as the foundation.
The oil and gas industry is adopting more sustainable practic-

Energy Storage
(178248.00) (1438884.00)
Midstream es by investing in renewables, carbon reduction technologies and
Hydrogen environmental management strategies. This indicates a positive
Carbon Capture outlook for reducing the industry’s carbon emissions. ●

Marie-Francoise Renard is the offshore sales and marketing director with Bureau
Veritas. Read the extended version of this article at offshore-mag.com/14290929.

54 OFFSHORE www.offshore-mag.com | MARCH/APRIL 2023

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 2023 ENERGY TRANSFORMATION STRATEGIES: Decarbonization

Catapulting CCS action for climate change

The use of CCS to reduce emissions from Act and enhancements to the 45Q tax credit enabled through

hard-to-abate sectors must increase dramatically the Inflation Reduction Act.

A huge CCS cluster is proposed around the Houston Ship
LAITH AMIN, DNV Channel. Led by ExxonMobil, the project aims to capture CO2
from refineries and industrial sources. Last year, Shell, along

A
s an essential decarbonization tool, the need to fast-track with Air Liquide and BASF, joined 11 other companies in sup-
carbon capture and storage (CCS) technologies is resound- porting the project. It is suggested that the project will store CO2
ing. Over the next three decades, the use of CCS to reduce emis- offshore, handling up to 50 MMtonnes of CO2 per year by 2030
sions from hard-to-abate sectors must increase dramatically. and 100 mtpa by 2040.
According to DNV’s latest Energy Transition Outlook report, clos- Similar progress is being made in Europe. In June 2022, the UK
ing the gap between the current 2.2°C trajectory—and the 1.5°C launched its first offshore carbon storage licensing round, seeing
future the planet needs—requires substantial CCS deployment. The significant interest. With the aim of decarbonizing large parts of
“Pathway to Net Zero Scenario” presented in the report highlights the UK economy, the acreage will extend the life of sedimentary
the need to scale up current capacity more than 100 times by 2050. basins and potentially lock away 20 to 30 mtpa of CO2 emissions
by the end of the decade.
Emissions captured with CCS by region — PNZ In addition to the much-heralded Northern Lights project, Nor-
(GtCO2/yr)
6 wegian authorities last year awarded three exploration licenses
North America Greater China
Latin America Indian for CO2 storage, one in the Barents Sea and two in the North Sea.
Europe Subcontinent
Sub-Saharan South East Asia With CO2 storage projects also being developed in Denmark and
4
Africa OECD Pacific the Netherlands, it is anticipated that the North Sea will host a
Middle East ETO forecast
and North Africa number of offshore CO2 storage facilities in the coming years.
North East
2 Eurasia Southeast Asia, China and the Middle East, regions reliant on
fossil fuels to drive growth, are galvanizing CCS initiatives. The
Indonesian government, for example, is working on regulations
0
2020 2025 2030 2035 2040 2045 2050 to allow CO2 imports to be injected into existing reservoirs in the
CCS contribution in DNV’s Pathway to Net Zero COURTESY DNV country but will prioritize domestic emitters.
With COP28 taking place in the United Arab Emirates later this
Hastening progress year, all eyes will be on the Middle East to turn discussion on decar-
Over the past decade, DNV has delivered more than 200 projects bonization into urgent action. Today there are three operating CCS
spanning the full CCS value chain. Europe, Canada and the US projects in the region, accounting for 10% of the global CCS capacity.
have been leading the charge and scaling up activities. Large- Expansion plans are being developed at Al Reyadah where capacity
scale commercial CCS facilities, such as Quest in Canada and is expected to grow to circa 5 mtpa in the coming years.
Sleipner in Norway, are operating today, and a number of hub
style projects are progressing such as Northern Lights in Norway, Social license and best practice
which is being constructed, and the East Coast Cluster in the UK, In the establishment of a new carbon capture industry, it is imper-
which is in development. ative that the public in general and local communities be consid-
In recent years, there has been an exponential growth in the ered essential stakeholders.
CCS project pipeline globally. Today about 30 facilities are storing Ensuring that communities are consulted early on and collab-
more than 40 MMtonnes of CO2 annually. With 61 facilities added oratively goes hand in hand with equitable project development
to the pipeline in the last 12 months, the total number of facilities plans. Likewise, addressing perceived risks and improving general
in operation and under development has grown to 191, represent- understanding of CCS technology will go a long way to assuage
ing a capture capacity of 244 mtpa. public uncertainty.
This will, in turn, provide an important foundation for meaningful
The global sprint for CCS policy and regulatory support, both of which are critical to scaling
The US is the frontrunner with 15 facilities operational and more up this important decarbonization technology. ●
than 70 that are currently in development. Many more projects
are expected to emerge over the next five years thanks to multi- Laith Amin is head of CCUS, Energy Systems, with DNV. Read the extended version of
this article at offshore-mag.com/14290932.
billion-dollar funding from the Infrastructure Investment and Jobs

MARCH/APRIL 2023 | www.offshore-mag.com OFFSHORE 55

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 2023 ENERGY TRANSFORMATION STRATEGIES: Decarbonization
The roadmap to reducing
offshore methane emissions
Cost-effective, reliable
technology exists for quantifying
methane emissions offshore
JULIEN PEREZ, Oil & Gas Climate Initiative
A
ction on methane must happen, and
quickly. Methane is responsible for
more than a quarter of global warming
and is more than 80 times more powerful
than CO2 in the atmosphere over a 20-year
timeframe. It is also short-lived. While CO2
lingers in the atmosphere for hundreds
of years, methane dissipates quickly, with
a half-life of approximately a decade. The
nature of methane means it is highly potent
but, crucially, the impact can be huge if mit-
igated. The Global Methane Pledge, signed
by 150 countries, calls for a 30% cut in meth-
ane emissions from all sectors by 2030.
Methane emissions come from multi-
ple sources, with the oil and gas industry
estimated to contribute about 20% of the
total. Those emissions contribute 50% of
the oil and gas industry’s direct emissions,
amounting to 2 Gt CO2e per year or 5% of
global greenhouse-gas (GHG) emissions.
According to the IEA, eliminating those
emissions by 2030 would be equivalent to
neutralizing two-thirds of the global trans-
port sector’s GHG emissions.
After flying over 8% of the shallow-wa-
ter facilities in the US Gulf of Mexico (GoM),
Carbon Mapper research concluded that
methane emissions from those assets
were substantially higher than those from
onshore assets—23% to 66% from the off-
shore platforms compared with 3.3% to
3.7% in previous studies of drilling activity in
the Permian Basin in Texas and New Mexico.
Oil & Gas Climate Initiative (OGCI)
funded a study measuring 103 deepwater
and shallow offshore platforms and drill-
ships in the GoM, with methane emission
rates ranging from 0 to 190 kg/h and with
56 OFFSHORE
230304OFF47-62_ETS SR.indd 56
the top two emitters accounting for 20%
of the total methane emissions of all sam-
pled sites. Despite the greater throughput
of the deepwater facilities, they had mod-
erate emission rates compared to shal-
low-water sites.
The breadth of results and performance
across facilities highlights the challenge
of rapid mitigation and more accurate
quantification and reporting of meth-
ane emissions.
Quantifying methane
emissions offshore
Methane leaks are difficult to detect off-
shore as emissions usually originate from
leaks and incomplete combustion from
flaring alone, where equipment is not
designed to vent since this is dangerous
for the crew. However, it is not an impossi-
ble task. Cost-effective, reliable technology
does exist for the offshore sector.
In May 2022 TotalEnergies, an OGCI
member company, launched a world-
wide drone-based emissions detection
and quantification campaign across all
its onshore and offshore operated sites.
The campaign, using Airborne Ultra-Light
Spectrometer for Environmental Applica-
tion technology, has shown the success
of a miniature dual sensor mounted on a
drone to detect methane and CO2 emis-
sions, while at the same time identifying
their source. The campaign detected emis-
sions below 10kg/hour.
OGCI Climate Investment’s portfolio
company, Seekops, has worked with bp
to enhance offshore methane measure-
ment by using a simulation tool for analysis
and flight planning, an air pollutant plume
dispersion equation and relative standard
deviation to map expected concentration
fluctuations from sites on the North Sea.
Innovative approaches are also being
tested to leverage satellite monitoring
on water, which is a technology that
www.offshore-mag.com | MARCH/APRIL 2023
Using a drone-mounted sensor, methane
monitoring takes place on an offshore
platform. COURTESY TOTALENERGIES © 2023
previously couldn’t work at sea. In August
2022, GHGSat detected the smallest off-
shore methane emission ever seen from
space, offshore Louisiana, and it mea-
sured at about 1,500 kg/hr, linking it to a
fugitive methane emission from an off-
shore oil and gas platform.
Continuous monitoring could potential-
ly play a big role offshore through install-
ing fixed sensors around the platform to
continuously detect, quantify and locate
the methane emissions. However, prog-
ress needs to be made on the quantifica-
tion and localization.
Collaboration
Even with available and cost-effective
technology, tackling methane offshore
isn’t going to happen without collective
endeavor and commitment. The industry
needs a step change in attitude toward
methane leaks so they are treated as seri-
ously as the industry already treats acci-
dents—aiming for zero.
This mission statement led to OGCI’s
launch of the Aiming for Zero Methane Ini-
tiative. The initiative calls on all members
of the industry to sign up to the principle of
striving to reach near-zero methane emis-
sions from operated oil and gas assets by
2030 and implement all responsible means
to avoid methane venting and flaring and
repair detected leaks. All organizations
working in the offshore sector are encour-
aged to join companies, such as Petrobras,
Saipem, SLB and Baker Hughes, to become
signatories or supporters of the initiative. ●
Julien Perez is OGCI’s vice president of strategy and policy.
3/29/23 3:16 PM
 2023 ENERGY TRANSFORMATION STRATEGIES: Technology
Game-changing
technology propelling
the energy transition
Innovation is happening and
transformation is sweeping the world,
albeit adoption and scaling is slow
MYRTLE DAWES, Net Zero Technology Centre
T
echnology innovation and digital transformation are fundamen-
tal to the energy transition. Realizing the value of nascent tech-
nologies takes time; however, the urgency for energy security and
affordability against the backdrop of the climate crisis that envel-
ops us, means time is not on our side.
Scotland’s Net Zero Technology Centre (NZTC) is developing
and deploying technologies that are designed to reduce emissions,
unlock the full potential of an integrated energy system and propel
the energy industry toward a digital, automated, decarbonized future.
Reducing emissions from offshore operations, whether through
eliminating leaks, flaring and venting, employing low-emission
logistic strategies, and/or repurposing infrastructure, must be a
priority. There have been many technology advances in this space.
For example, corrosion under insulation (CUI) continues to
be one of the key integrity challenges associated with insulated
equipment. Technology developer Copsys was selected as one of
20 game-changing solutions in NZTC’s 2022 Open Innovation Pro-
gramme. Copsys Intelligent Digital Skin detects and locates coat-
ing barrier damage or CUI hotspots in real time before corrosion
damage can occur. The integrated impressed current cathodic
protection within the coating creates an entirely new category of
continuous sensor technology. Consisting of an epoxy resin with
Copsys proprietary additives and proprietary polyamine harden-
er, Copsys Intelligent Digital Skin is the first technology to digitally
detect and locate coating damage.
Along with Siemens Energy, NZTC has recently completed a key
deliverable in its Alternative Fuel for Gas Turbines project with a suc-
cessful pilot of running an aero-derived gas turbine on green meth-
anol. This type of R&D is a big step toward enabling some offshore
assets to operate using low-carbon fuels without extensive modifica-
tions. The use of green methanol has the potential to cut CO2 emis-
sions by up to 70% compared to conventional fuels across the UKCS.
CCUS is not only a proven method for emissions reduction but
is also an attractive opportunity for traditional oil and gas com-
panies looking to diversify their energy operations. NZTC worked
with direct air capture (DAC) technology developer CO2CirculAir
to secure BEIS funding for its SMART-DAC technology. The novel
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230304OFF47-62_ETS SR.indd 57
NZTC’s Hydrogen Backbone project is enabling wind-green
hydrogen projects for the UK and export to Europe. COURTESY NZTC
solution captures CO2 directly from the air by utilizing natural air-
flow, avoiding using energy-intensive air blowers, while harnessing
renewable energy to power the absorbent regeneration process—
making it a near-zero emissions solution for CO2 capture.
Hydrogen
Hydrogen will facilitate various decarbonization applications.
NZTC’s Hydrogen Backbone project considers how a hydrogen
pipeline network could be established between energy hubs and
existing national grid infrastructure, linking ports and other infra-
structure. While NZTC’s Liquid Organic Hydrogen Carrier (LOHC)
for Hydrogen Transport from Scotland project will demonstrate
that LOHC, in the form of methylcyclohexane, can be successfully
transported at scale, providing an export route to the Port of Rot-
terdam and other European destinations. The project is delivered
by a diverse, international consortium, including Axens, Chiyoda,
EnQuest, ERM, Koole Terminals, Port of Rotterdam, Scottish gov-
ernment, Shetland Islands Council, Suncor and Storegga.
Offshore robotics
Digitally based technologies empowered by data, robotics and
autonomous systems will optimize and enable remotely con-
trolled operations. NZTC’s Offshore Low Touch Energy Robotics
and Autonomous Systems are delivering the competences nec-
essary to engage, anchor and utilize a robotics and autonomous
systems supply chain. Beyond Visual Line of Sight demonstrators
have shown the art of the possible by using commercial drones to
autonomously deliver critical payloads across onshore sites. Fur-
ther demonstrations for air, land and sea-based robotics will take
place in 2023 in an offshore environment supporting the develop-
ment of best practice to inform industry standards.
Innovation is happening, and transformation is sweeping the
world, albeit adoption and scaling is slow. Increased investment
in clean energy technologies, economies of scale and regulation
will help to de-risk technology and reduce costs. This is an exciting
time for the offshore energy industry, and it’s only the beginning. ●
Myrtle Dawes is NZTC's solution center director. Read an extended version of this
article at offshore-mag.com/14290941.
OFFSHORE 57
3/29/23 3:16 PM
 2023 ENERGY TRANSFORMATION STRATEGIES: Sustainable Transportation

Offshore technologies meeting ESG goals

A sampling of the latest trends in
vessel technology, emissions monitoring
and alternative fuels
COMPILED BY ARIANA HURTADO, Editor and Director of Special Reports

Changing the primary power source for vessels

A big part of reducing the environmental impact of the maritime
industry comes from how vessels are powered and deployed.
Fugro is actively looking to transition from marine diesel as the
primary power source toward green methanol as a low-carbon
alternative. The MENENS consortium (Methanol as an Energy
Step Towards Zero-Emission Dutch Shipping) has been recently
awarded a grant from the Dutch government to further its work.
By moving to methanol as fuel, as well as through increasing
the number of uncrewed operations to enable the use of small-
er vessels, the company is working toward net-zero targets. Sus-
tainability is also being driven in the industry using remote and
autonomous technologies, and Fugro has a goal there to reach
net-zero emissions of its operations (Scope 1 and Scope 2) by 2035.
Green ammonia energy system for large vessels
The ShipFC project aims to demonstrate that long-range
zero-emission voyages with high power on larger ships is possi-
ble. The project will see the Viking Energy vessel, which is owned
and operated by Eidesvik and on contract to Equinor, have a large
2-MW ammonia fuel cell retrofitted, allowing it to sail solely on
clean fuel for up to 3,000 hours annually. The ammonia used in
the energy system will be produced by electrolysis. The goal of
the project is also to ensure that a large fuel cell can deliver total
electric power to shipboards systems safely and effectively. A sig-
nificant part of the project will be the scale up of a 100-KW fuel cell
to 2 MW. The ammonia fuel cell system will be installed in Viking
Energy in late 2023, and this is the first time an ammonia-pow-
ered fuel cell will be installed on a vessel. The ShipFC project also
will perform studies on three other vessel types, namely offshore
construction vessels and two cargo vessel types, to illustrate the
ability to transfer this technology to other segments of the ship-
ping industry.
EcoAdvisor monitors the vessel operation and its environment.
COURTESY KONGSBERG MARITIME
control system dynamics. The technology enables operators to
achieve reductions in fuel, emissions and maintenance costs, with-
out compromising vessel redundancy margins or vessel opera-
tional efficiency. The tool also provides live advice on how ship
owners can reduce their carbon footprint while at the same time
reducing opex.
Maritime software optimizes fleet operations data
As an independent subsidiary of the American Bureau of Shipping
(ABS), Wavesight was created to deliver maritime intelligence. ABS
Wavesight’s suite of product dashboards delivers rich, real-time
feedback to help fleet operators reduce their carbon footprint and
drive ESG initiatives. It offers a set of tools that can organize and
optimize data for fleet operations of any size. Personnel manage-
ment, asset risk management and fleet performance measures
are housed in one place, and users can align local and remote
data into actionable insights for voyage performance optimiza-
tion. The technology is designed to optimize a route in real time
to boost voyage economics.
Converting offshore construction
vessels to hybrids
Boskalis announced plans last year to convert various vessels in
its Offshore Energy division to hybrid vessels through retrofitting

Emissions monitoring tool for vessels

EcoAdvisor is an outcome of a joint research project between
Kongsberg Maritime, DOF Subsea, Sintef, NORCE and Innova-
tion Norway, with the aim of developing technologies to monitor
and reduce greenhouse-gas emissions during vessel operations.
EcoAdvisor monitors the vessel operation and its environment, Boskalis will conduct modifications on the Bokalift 1 crane
including power generation, propulsion, environmental forces and vessel, among others. COURTESY BOSKALIS

58 OFFSHORE www.offshore-mag.com | MARCH/APRIL 2023

230304OFF47-62_ETS SR.indd 58 3/29/23 3:16 PM

 energy storage systems, or “power packs.” The conversions will
be designed to cut the vessels’ fuel consumption and associat-
ed CO2 and NOx emissions by up to 20%, also providing a power
supply and energy storage facility while the vessels are docked.
Boskalis will conduct the modifications, due to be completed by
year-end 2024, on the Bokalift 1 and Bokalift 2 crane vessels, two
construction support vessels and two diving support vessels, all
of which have DP2 capabilities. Boskalis already employs special
dashboards on its vessels to enhance efficient fuel usage and
biofuels as an alternative to fossil fuels.
Platform helps cut offshore vessel emissions
SailPlan is an emissions monitoring and optimization platform
that combines the real-time engine, fuel and navigational data
from vessels with the weather, mapping, infrastructure and traffic
data to benchmark, optimize and report fleet emissions. Accord-
ing to SailPlan, Harvey Gulf has seen quantifiable emissions
reductions beginning with the Harvey Power, a 310-ft platform
supply vessel (PSV). The company says the addition of SailPlan
makes the PSV the first one in North America to be equipped
with a real-time emissions optimization capability. Harvey Power
is designed to run on LNG, electric battery power and ultralow
sulfur diesel.
Increasing fuel efficiency of a vessel fleet
In early 2022, Solstad Offshore entered a collaboration with
Wärtsilä to reduce CO2 emissions from its 90-strong offshore
vessel fleet by 2030. The aims are to identify, assess and
implement solutions for increasing fuel efficiency and cutting
emissions. Each vessel will undergo reviews for suitable solu-
tions, potential operational improvements and life extension
measures. Solstad is targeting full carbon neutrality by 2050.
Extending cuts of fuel consumption per vessel to 50% should
come from optimizing energy efficiencies and retrofits to enable
the vessels to operate with alternative fuels such as hydrogen,
ammonia and methanol. New vessels will be designed to pro-
vide low or zero emissions from the start of operations. Wärt-
silä successfully operated a combustion engine on a fuel mix
with 70% ammonia content and is working on ways of raising
this proportion.
Fuel alternative for offshore supply vessels
Maersk Supply Service offers the option of lower carbon-emit-
ting operations by running its offshore vessels on a new fuel
mix. The ECO Offshore product follows the successful trial of
low-carbon biofuel with marine gasoil aboard the Maersk Tender
anchorhandler, in partnership with startup company The Ocean
Cleanup. ECO Offshore uses hydrotreated vegetable oil, which
is described as a safe, sustainable biofuel that provides the
same performance as conventional fuels. During a 2021 trial for
a six-week ocean-cleaning charter in the Pacific Ocean, biofuel
was blended into the marine gasoil, resulting in a reduction in
MARCH/APRIL 2023 | www.offshore-mag.com
230304OFF47-62_ETS SR.indd 59
carbon emissions of 38.95 metric tons. Maersk said the program
confirmed the biofuel does not compromise on safety or per-
formance, and it does not require additional training or vessel
upgrades. In September 2022, the company said it was planning
to adopt the biofuel across its global fleet.
Modified fuel cuts helicopter emissions
In October 2022, NHV flew a helicopter running on low-emis-
sions aviation fuel to a wind power platform in the North Sea. The
fuel, developed by TotalEnergies, is made from waste and recy-
cled residues from sources
such as used cooking oil. On
this flight, the fuel was said
to have cut CO2 emissions by
27%. According to NHV, the
fuel mix’s renewable fraction
is blended with up to 30% of
traditional fuel (JET A-1) to
create the “sustainable avia-
tion” fuel. This is said to have
similar technical properties
to JET A-1, with no required
modifications to the aircraft, NHV’s low-emissions aviation
logistics, infrastructure or fuel is developed by
refueling operations. TotalEnergies. COURTESY NHV
Role of ammonia in decarbonizing existing assets
In September 2022, KBR announced its plans to perform a study
to develop a green ammonia-based power system for a semisub-
mersible drilling rig owned by Odfjell. The company will collab-
orate with Odfjell, Equinor and Wärtsilä to assess conversion of
the diesel generators on drilling rigs units to ammonia-fueled gen-
erators. The collaboration will integrate KBR’s semisubmersible
technology, Wärtsilä’s power systems, and Odfjell’s and Equinor’s
operations capabilities to deliver a carbon-neutral solution. KBR is
an ammonia licensor, and its K-GreeN technology produces car-
bon-free ammonia based on electrolysis of water.
Partners investigate use of
biofuels on offshore fleet
Earlier this year, Eni Sustainable Mobility and Saipem signed
a memorandum of understanding on use of biofuels to power
Saipem’s 45-strong fleet of drilling and construction vessels, with
a special focus on operations in the Mediterranean Sea. Eni has
been producing biofuels since 2014, after converting its refineries
in Venice and Gela to biorefineries. Through application of Ecof-
ining technology, biofuel products are processed from vegetable
raw materials or animal waste. Saipem aims to increase the use of
alternative fuels on its vessels to cut its own and its clients’ emis-
sions. Using biofuel, it aims for emissions cuts of about 550,000
metric tons per year of CO2, equivalent to 60% of its total annual
Scope 1 emissions. ●
OFFSHORE 59
3/30/23 11:52 AM
 2023 ENERGY TRANSFORMATION STRATEGIES: Digitalization Trends
Software innovations improving
offshore efficiencies
A selection of the recent system developments
for the offshore energy sector
COMPILED BY ARIANA HURTADO, Editor and Director of Special Reports
Autonomous FPSO solutions reduce human error
Yinson Production and AVEVA signed a memorandum of under-
standing earlier this year to develop new FPSO solutions. This
involves applying AVEVA’s software to allow Yinson to initially
operate an FPSO with minimal human involvement, later becom-
ing fully autonomous. Yinson will implement a digital twin virtu-
al model of the floating structure and deploy analytics, machine
learning and artificial intelligence to sustain the digital twin
throughout the asset’s life cycle. Autonomous technologies, Yinson
said, can enhance the energy and resource efficiency of assets,
help to lower emissions, and reduce human error and manual
intervention.
Digital tools deliver more intelligent operations
Baker Hughes will collaborate with bp on further defining and
developing Cordant, a new Baker Hughes integrated suite of solu-
tions for asset performance management and process optimi-
zation. Cordant enables the standardization of asset health and
strategy by integrating operational data within a probabilistic
model, simultaneously optimizing the resource and cost struc-
ture without negatively impacting plant availability or production
output, Baker Hughes said. As part of the collaboration, bp will
deploy OnePM, a Cordant asset strategy tool in select locations
across its Gulf of Mexico production assets, where Baker Hughes
has a large installed base of rotating equipment, controls and
associated digital services. Cordant, released in January, com-
bines existing digital offerings for hardware, software and ser-
vices capabilities into one integrated and simplified user interface.
Technology converts ROV into one with autonomy
Greensea Systems recently released OPENSEA Edge, which is
designed to bring “true autonomy” to ocean robotics, the compa-
ny said. While the OPENSEA open architecture platform provides
the software capabilities of navigation, control, autonomy, percep-
tion and long-range communications, OPENSEA Edge provides
a modular, hardware agnostic processing platform that converts
a traditional ROV into one with autonomy, artificial intelligence,
vehicle perception, and tetherless, over-the-horizon, communica-
tion and control. It is an add-on package to deliver integrated edge
processing and perception system integration to a traditional ROV.
60 OFFSHORE
230304OFF47-62_ETS SR.indd 60
Software develops digital twin within 20 days
James Fisher subsidiary Asset Information Services (AIS)
released a reengineered version of its R2S digital twin software
in October 2022, following a field deployment for a long-term
client. R2S is now a browser-based, modular platform provid-
ing regular, user-generated updates directly to project teams. It
also combines all visual data layers in a single window, improv-
ing usability, AIS said. Energy asset owners and operators, off-
shore and onshore, can use R2S to develop a digital twin of their
assets within 20 days, compared to what the company claimed
is more typically months or years.
Robots service offshore wind region
Nauticus Robotics has initiated its operations in Norway and
the UK to service the North Sea offshore market. It will deploy
assets and collaborate with local partners to service the
region’s offshore wind and oil and gas assets with its expand-
ing Nauticus Fleet, a robotic navy of surface and subsea robots.
Nauticus began production of its Nauticus Fleet, a robotic navy
of Hydronaut and Aquanaut pairs, in April 2022. Initial deliv-
ery to its international bases is anticipated to begin in sec-
ond-quarter 2023. These tandem pairs will be deployed to
multiple locations around the world to service subsea mainte-
nance, intervention and data collection activities. The company
said Nauticus Fleet uses 21st century ocean robotic technol-
ogies to combat climate change and the global impact on the
world’s marine environment. The pairing of both surface and
subsea robots is enabled by ToolKITT, Nauticus’ autonomous
software platform that affords robust machine intelligence in
addition to automation.
North Sea Sofia wind farm gets software support
Vissim was contracted in December 2022 for RWE’s Sofia off-
shore wind farm to supply a marine management and commu-
nication package. This will comprise marine optimization and
planning software and a communication, sensor and network-
ing arrangement, including Software-as-a-Service certification
and induction management, permit to work and daily progress
reporting. All will be integrated with Vissim’s real-time decision
support framework, covering vessel, aircraft and automated per-
sonnel tracking, working weather windows and warning-man-
agement options. In addition, the company will deploy onshore,
vessel-based and fully autonomous foundation-based sensor
and communication hubs, networked to both onshore and ves-
sel-based control rooms. The contract relates to the offshore
construction of the Sofia project in the North Sea. ●
www.offshore-mag.com | MARCH/APRIL 2023
3/29/23 3:16 PM
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 2023 ENERGY TRANSFORMATION STRATEGIES: Case Study
Powering floating offshore oil and
gas operations is no easy task
BW Offshore utilizes IFS software to optimize
operational efficiency, uptime and maintenance
CAROL JOHNSTON, IFS, and FRITZ EKLØFF, BW Offshore
B
alancing an uncertain global economy and the increase in
market volatility, along with the everyday stress of operating a
successful global offshore floating production service is no easy
feat. Companies need 24/7 visibility, whether this be the condition
or status of onshore/offshore assets or a view into business-crit-
ical data. Only when this overall visibility is achieved can oil and
gas companies keep operations optimized, revenues maximized
and their competitive advantage unmatched; and only enterprise
software can cover all the bases.
BW Offshore, a provider of floating production services to the
oil and gas industry, has been using IFS software to overcome
global economic unpredictability by optimizing operational effi-
ciency, uptime and maintenance.
Technology is playing a huge role in the oil and gas sector’s
energy transformation. To remain competitive in what is still
an extremely volatile market, oil and gas companies are striv-
ing to transform their operations. This transformation is con-
ducted through improving the reliability and availability of their
assets while reducing costs and carbon emissions and manag-
ing market volatility.
ERP software capabilities
BW Offshore is a diversified offshore energy company with
a fleet of 10 FPSO units across the Americas, Asia-Pacific,
Europe and West Africa. The company’s organizational infra-
structure is complex and requires around-the-clock visibility
into all offshore and onshore activities—and this is where enter-
prise resource planning (ERP) software comes into its own.
Using IFS software, BW Offshore has optimized and stream-
lined its operations and management of its environment. The
company now uses a range of IFS modules, including global
finance, supply chain, projects, maintenance, inventory, human
resource management, maintenance (for vessels) and docu-
ment management.
BW Offshore recognized that full visibility into its onshore and
offshore operations would be a better way to gain better control
of its projects and costs and improve its ability to react quickly
and efficiently to market changes. The company’s most recent
deployment of IFS software has enabled the company to run on
a global scale—spanning projects and services employing 1,700
users across 13 countries.
62 OFFSHORE
230304OFF47-62_ETS SR.indd 62
Solving visibility issues
To keep operations running smoothly, BW Offshore needed a
comprehensive technology infrastructure to match its complex
ecosystem, which includes 70 companies managing significant
projects—of up to 1$ billion—and thousands of suppliers. To ensure
data continuity and stability, BW Offshore opted to integrate data
replication into its IFS system, which has proved paramount in
supporting everyday operations. Data replication stores data in
more than one site and helps improve the availability of data. In the
event of communication being temporarily lost, with one database
onshore and one located at each offshore location, IFS Replica-
tion keeps master business-critical data and transaction updates
synchronized at each site.
Enhancing decision-making
The new ERP deployment also gives BW Offshore the ability to
quickly create “lobbies” for different roles and departments, pro-
viding all users with an interface fit for their tasks. These enhanced
lobbies enable key decision-makers to view and drill down into
key operational KPIs and actions in real time and take appro-
priate action.
The benefits of integrating a global enterprise software system
into onshore and offshore operations include increased visibility
into projects, data and assets; improved project control; and the
use of automated data replication, enabled enhanced operational
efficiencies and maximized uptime. In addition, enterprise tech-
nology works 24/7, accessing and analyzing information accu-
rately to facilitate data-driven decision-making, while minimizing
the risk of human error.
Cutting customization needs
One of the company’s key goals when upgrading its enterprise
software system was to reduce the number of customizations. In
achieving this, BW Offshore has significantly cut operational costs
and the total cost of ownership. Functional improvements within
the upgrade enabled the company to reconsider their legacy cus-
tomizations—could they be retired or could they be accommo-
dated using standard configurations? The company was able to
reduce the need for system maintenance and to decrease the
number of customizations present within its enterprise software
from 63 to 23.
Despite global economic uncertainty and continued market
volatility, energy companies remain in a strong position to stay
competitive with advanced enterprise software solutions. Tech-
nology can help an organization adapt rapidly in changing market
conditions and maintain revenues. ●
www.offshore-mag.com | MARCH/APRIL 2023
3/29/23 3:16 PM
 FRANCE CONTINUED
fixed wind farm in the UK
southern North Sea, and
by 2024, Hoboken should
have reached the milestone
of 3,000 TPS delivered for
the fixed wind sector. “The
European fixed offshore wind
market remains very dynam-
ic,” De Villepin said, “with
the market increasing in the
UK, Germany and France
and elsewhere.” To match
demand, further investments
are under way at the group’s
Wallsend complex in north- Storage of foundations for the Saint-Nazaire fixed
east England to adapt the site offshore wind farm in La Rochelle, western France.
for TP manufacture.
In Norway, bid/permitting pro-
cesses are advancing for the coun-
try’s first large-scale offshore wind
park clusters. Eiffage Métal aims
to participate as an EPCI contrac-
tor for the Utsira floating offshore
wind development in the North Sea,
where a minimum of 20 large float-
ers could be needed: it has held talks
with Norwegian companies on adapt-
ing local yards for serial floater con-
struction. Local ports too would need
to be modified as the infrastructure
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OFFSHORE 63
3/29/23 3:16 PM
 BEYOND THE HORIZON
How a fake climate emergency
created a real energy emergency
T
he false idea that fossil fuels’ climate impacts are an
“emergency” that requires us to rapidly eliminate fossil
fuels has caused an actual energy emergency. The “cli-
mate emergency” movement must be held accountable.
The world is experiencing the worst energy crisis since
the 1970s, and it may end up being far worse. Skyrocketing
energy prices are driving price inflation in every area of life.
While America is suffering from the energy crisis
and Europe is suffering far more, the worst-affected are
poor nations—who are getting outbid for today’s scarce
energy supplies. For example, we’ve seen power outages in
Bangladesh, which has been outbid for natural gas by Europe.
The global energy crisis constitutes an emergency—a
dire and deadly problem requiring a swift, dramatic solution.
What’s the solution to the global energy emergency? We
must put a stop to its cause: the “climate emergency” move-
ment’s campaign to rapidly eliminate fossil fuels.
While “climate change”—humans impacting climate—is
real, “climate emergency” is not. The world is slowly becom-
ing warmer—at a cold point in geological history, when
many more people die of cold than of heat. This doesn’t at
all justify rapidly restricting global fossil fuel use.
The truth is that fossil fuels’ CO2 emissions have contrib-
uted to the warming of the last 170 years, but that warming
has been mild—1°C, mostly in the colder parts of the world.
Fossil fuels actually overall make us far safer from
climate by providing low-cost energy for the amazing
machines that protect us against storms, protect us against
extreme temperatures, and alleviate drought. Climate disas-
ter deaths have decreased 98% over the last century.
The only rational approach to reducing fossil fuels' CO2
emissions is a long-term one based on liberating low-car-
bon innovation, including nuclear energy.
Unfortunately, instead of recognizing that CO2 emis-
sions are not an emergency and pursuing a long-term emis-
sions-reduction policy of liberating low-carbon alternatives,
our leaders declared “emergency” and started immediately
restricting fossil fuels—with no viable replacement.
The “climate emergency” movement, centered in the
West, has restricted: 1) fossil fuel investment 2) fossil fuel
production 3) fossil fuel transport.
This has artificially suppressed fossil fuel supply, making
industry unable to meet growing demand. Which means
sky-high prices.
64 OFFSHORE
230304OFF64_bey.indd 64
For fossil fuel energy to remain low-cost requires suffi-
cient investment. But the “climate emergency” movement
has used government and private entities, often under the
banner of “ESG,” to punish and suppress it—meaning less
fossil fuel supply.
Is it any wonder that, threatened with punishment,
investment in oil and gas declined dramatically? Between
2011 and 2021, oil and gas exploration investments declined by
50%. Less investment equals less supply equals higher prices.
For fossil fuel energy to remain low-cost for billions
of people requires that producers be free to produce it all
around the world.
The “climate emergency” movement pushed France,
Germany, the UK, Bulgaria, Spain, Ireland, Denmark, and
The Netherlands to place preemptive bans on fracking—
the source of bounteous oil and gas production in the
United States.
For fossil fuels to remain low-cost for billions of people
we need to be able to easily transport them from where
they are produced to where they are used. But the “cli-
mate emergency” movement has opposed transportation
around the world.
The “climate emergency” movement has rationalized
its opposition to fossil fuel investment, production, and
transport with claims that solar and wind could rapid-
ly replace fossil fuels. This has obviously not happened.
Despite huge solar and wind subsidies, fossil fuel demand
has increased.
There was never any reason to expect solar and wind
to replace fossil fuels. Solar and wind’s basic problem is
unreliability, to the point they can go near zero at any time.
The “climate emergency” movement successfully per-
petrated two deceptions on the world. One was that we
needed immediate, drastic action against fossil fuels. The
second was that unreliable solar and wind would save us
from adverse consequences. The cost of these deceptions
has been a global energy emergency.
The solution to the global energy emergency is to reject
the “climate emergency” movement and embrace the free-
dom to use all forms of energy. ●
Alex Epstein is the author of Fossil Future: Why Global Human Flourishing
Requires More Oil, Coal, and Natural Gas—Not Less. He is also the creator of
EnergyTalkingPoints.com.
www.offshore-mag.com | MARCH/APRIL 2023
3/29/23 3:28 PM
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We have applied our extensive expertise and capabilities as
a leading manufacturer of offshore drilling and production
equipment for the world’s most challenging oil and gas wells
to develop economical products that enable long-term carbon
capture and storage in the North Sea region and beyond.

Dril-Quip’s Green By Design™ CCS portfolio includes our:

• Fully integrated Subsea Injection Systems capabilities
Dril-Quip® SingleBore™ Subsea Tree
including a full suite of innovative transportation,
logistics, monitoring, and storage technologies via
collaborative agreements
• Best-in-class Dril-Quip® SS-15® RLDe Subsea Wellhead
field-proven in extreme conditions

• Lightweight, cost-efficient, and compact Dril-Quip®

SBTe™ Vertical Tree – available in both hydraulic
and fully electric models

Our cost-efficient, reliable CCS systems are simple to install,

operate, monitor, and maintain, and integrate seamlessly with
subsea templates. Contact Dril-Quip today to ensure decades
of service for your CCS projects.

Dril-Quip® SS-15® RLDe Subsea Wellhead

the power of
TM

© 2023 Dril-Quip, Inc. All rights reserved. | dril-quip.com #ThePowerOfE #GreenByDesign #OurTreesAreGreener

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