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October 2014
World Trends and Technology for Offshore Oil and Gas Operations
Australia
update
Deepwater
technology review
ONS RPSEA DeepStar
: sary
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ID ive
S
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IN r an ort
a p
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0
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surveillance hours.
Real-time condition monitoring.
AD00642OSS
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St
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Bo by
ot ITC
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at Glo
#6 b
01 als
itcglobal.com
ITC Global 2014 All Rights Reserved
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International Edition
Volume 74, Number 10
October 2014
Celebrating 60 Years of Trends, Tools, and Technology
34
CONTENTS
AUSTRALIA UPDATE
Prelude turret sets new standards for size, capability .......... 34
Shells Prelude FLNG project offshore northwestern Australia continues to push the technology boundaries with a number of frsts. The
mooring turret system for the vessel is no exception. At almost 100 m
(328 ft) in height, it is the largest in the world. This part of the system
weighs 4,300 metric tons (4,740 tons) alone. The turret construction
contract is held by Drydocks World and consists of fve parts, all to
ship from Dubai to Geoje, South Korea.
DEEPWATER UPDATE
ONS 2014 highlights next-phase deepwater
drilling, subsea recovery challenges ...................................... 44
38
Offshore (ISSN 0030-0608) is published 12 times a year, monthly by PennWell, 1421 S. Sheridan Road, Tulsa, OK 74112. Periodicals class postage paid at Tulsa, OK, and additional offices.
Copyright 2014 by PennWell. (Registered in U.S. Patent Trademark Office.) All rights reserved. Permission, however, is granted for libraries and others registered with the Copyright Clearance
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POSTMASTER send form 3579 to Offshore, P.O. Box 3264, Northbrook, IL 60065-3264. To receive this magazine in digital format, go to www.offshoresubscribe.com.
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Quartet
DOWNHOLE RESERVOIR
TESTING SYSTEM
slb.com/Quartet-Muzic
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International Edition
Volume 74, Number 10
October 2014
Celebrating 60 Years of Trends, Tools, and Technology
CONTENTS
60 YEARS OF OFFSHORE
Offshore at 60: The Blue Water breakthrough ........................ 58
In January 1962, a strange contraption under lease to Shell Oil, called
the Blue Water 1, spudded a record-setting offshore well in 297 ft
(91 m) of water in the Gulf of Mexico. The maiden voyage of the
Blue Water 1 took place a month before NASA astronaut John Glenn
became the frst person to complete an orbit of the earth. Both missions revealed a newfound human ability to explore frontiers beyond
the comfort of terra frma. On Aug. 14, 1962, Shell Oil dramatically
disclosed the details of its new foating drilling platform.
70
Selected from the October 1999 issue of Offshore, this article describes
Cal Dive Inc.s journey to complete the Cooper feld, the frst deepwater
subsea decommissioning project in the Gulf of Mexico.
74
ENGINEERING, CONSTRUCTION
& INSTALLATION
Industry shows renewed interest
in foat-over installation .......................................................... 82
82
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DRILLING PRODUCTS & SERVICES | ONSHORE COMPLETION & WORKOVER SERVICES | PRODUCTION SERVICES | SUBSEA & TECHNICAL SOLUTIONS
1410OFF_5 5
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International Edition
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SUBSEA
Subsea power grid accelerating transfer of topsides functions to seafoor............ 84
Siemens is close to completing an initial test program on the four main components of a proposed subsea power distribution hub. The Subsea Power Grid will be connected on the seafoor
to an array of new equipment emerging for subsea production, processing, and boosting. This
should facilitate expansion of feld development into deeper water, longer step-outs, and more
demanding production environments.
D E P A R T M E N T S
Online .................................................... 8
Comment ............................................. 10
Data ..................................................... 12
Global E&P .......................................... 14
Offshore Europe .................................. 18
Gulf of Mexico ..................................... 20
Subsea Systems ................................. 22
Vessels, Rigs, & Surface Systems ...... 24
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Available at
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Latest news
The latest news is posted daily for the offshore oil and gas industry covering
technology, companies, personnel moves, and products.
New videos
Interviews of offshore
oil and gas industry pioneers
Offshore magazine is pleased to provide video interviews of offshore oil and
gas pioneers. These industry pacesetters offer their thoughts on their early
days in the industry, and discuss how the relevant technologies and applications have evolved over time. They also speak to the challenges and issues that
the industry faces today.
These interviews, completed in 2013, were undertaken as part of Offshores
partnership with the Offshore Energy Center and the George Bush Presidential Library and Museum at Texas A&M University, and its exhibit Offshore
Drilling: The Promise of Discovery, which runs through January 2015. Video
production provided by Frame by Frame, College Station, Texas.
http://www.offshore-mag.com/index/celebrate60/inter view-videos.
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Submit an article
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COMMENT
Australian technology
Shell, today, continues to push the boundaries of technology development. A good example is the Shell-operated Prelude FLNG project for installation offshore Australia. It
boasts a number of industry frsts, including its mooring turret. Upon completion, it will
be the largest of its kind in the world. Gene Kliewer, Offshore Technology Editor, Subsea
& Seismic, interviewed Shell senior management for a review of the projects key design
parameters, and the outlook for similar projects. Kliewers report begins on page 34.
Elsewhere in Australia, the Ichthys project is now offcially half way to completion. Three
mega-projects in one, Ichthys will involve some of the largest offshore facilities in the industry, signifcant onshore infrastructure, and an 889-km (552-mi) pipeline connecting the
two. When complete, the pipeline will become the ffth-longest subsea pipeline in the world.
Offshore contributing editor Wendy Laursen shares a detailed review of the project
scope, challenges, design strategy, and construction progress to-date. Laursens report
begins on page 38.
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G L O B A L D ATA
$151,000
$151,000
$151,000
$151,000
$151,000
$151,000
$151,000
$151,000
$151,000
$151,000
$151,000
$151,000
$460,989
$465,759
$472,587
$477,497
$480,353
$486,160
$487,145
$497,479
$500,733
$502,751
$502,771
$506,750
$681,000
$681,000
$681,000
$681,000
$681,000
$681,000
$735,000
$735,000
$735,000
$735,000
$735,000
$735,000
$30,000
$30,000
$30,000
$30,000
$30,000
$30,000
$30,000
$30,000
$30,000
$30,000
$30,000
$30,000
$125,384
$126,303
$127,986
$127,469
$129,462
$131,160
$130,610
$131,247
$131,924
$133,665
$136,846
$136,624
$365,000
$365,000
$365,000
$365,000
$365,000
$365,000
$365,000
$365,000
$365,000
$377,000
$377,000
$377,000
$145,000
$145,000
$145,000
$145,000
$145,000
$145,000
$145,000
$145,000
$145,000
$145,000
$145,000
$145,000
$386,554
$382,295
$395,521
$394,529
$394,603
$393,032
$387,284
$391,396
$393,873
$395,812
$396,901
$397,563
$656,662
$656,662
$656,662
$656,662
$656,662
$656,662
$656,662
$656,662
$656,662
$656,662
$656,662
$656,662
Drillship
2013 Sept
2013 Oct
2013 Nov
2013 Dec
2014 Jan
2014 Feb
2014 Mar
2014 Apr
2014 May
2014 June
2014 July
2014 Aug
Jackup
2013 Sept
2013 Oct
2013 Nov
2013 Dec
2014 Jan
2014 Feb
2014 Mar
2014 Apr
2014 May
2014 June
2014 July
2014 Aug
Semi
2013 Sept
2013 Oct
2013 Nov
2013 Dec
2014 Jan
2014 Feb
2014 Mar
2014 Apr
2014 May
2014 June
2014 July
2014 Aug
Source: Rigzone.com
Total fleet
Contracted
Working
100
1,000
No. of rigs
Maximum
Source: IHS
Average
900
90
800
80
700
70
600
60
500
Minimum
50
ly
Ju
12
12
ct
n
Ja
13
Ap
13
ril
ly
Ju
13
O
13
ct
n
Ja
14
14
ril
Ap
ly
Ju
14
Chevron
Woodside
Inpex
Operator capex share (%)
Year/Month
GDF Suez
PTTEP
ConocoPhillips
BHP Billiton
Others
100
90
80
70
60
50
40
30
20
10
0
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
FLNG project is likely to account for almost 70% of the operators Australian offshore capex to 2018, with
the FLNG FPSO anticipated to be installed toward the end of the timeframe.
The floating platforms market in Australia is projected to see significant levels of investment to 2018,
supported by the growth of FLNG upon which Australia is anticipated to capitalize in order to exploit
remote offshore gas reserves as well as the development of other various floating developments such
as the Ichthys, Equus, and Laverda projects. Likewise the pipelines market is also projected to require significant investment during the timeframe, driven by a number of subsea developments which are required
where deeper waters prevent the use of fixed platforms and thus require the use of subsea production
equipment, and long export pipelines including the Ichthys and Poseidon export lines. With increased
levels of offshore activity in Australia the demand for subsea infrastructure, and thus expenditure demand,
will undoubtedly increase over the next five years.
George Griffiths, Senior Energy Researcher, Infield Systems
1410OFF_12 12
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GLOBAL E&P
environment. The results will help determine options for a southwest area tieback
on the feld.
West Africa
Nigerias Department of Petroleum Resources has sanctioned development of the
Afren-operated Aje oil feld. The frst-phase
will involve tieback of two subsea production
wells to a leased FPSO, with start-up likely
in late 2015.
Mediterranean Sea
North/Central America
Shell has resubmitted a draft plan to the
US Department of the Interior concerning
exploration drilling in the Chukchi Sea. According to the New York Times, the company
plans to use two rigs for a campaign in 2015
or 2016. Shell holds interests in three prospects spanning fve offshore blocks.
South America/
Caribbean Sea
BP has awarded Technip an EPIC contract
for the Juniper project offshore southeast
Trinidad. Technips Houston center will manage the program which includes construction of a 10,400-ton (9,434-metric ton) platform, designed to process 590 MMcf/d (17
MMcm/d) of gas, and engineer and install a
10-km (6.2-mi) 26-in. rigid pipeline and associated fexible fowlines, umbilicals, and other
subsea structures. Offshore work is expected
to start during the second half of 2016.
ADX Energy has been awarded an exploration permit in the Sicily Channel offshore
southwest Italy, on trend with the companys
Kerkouane permit in adjoining Tunisian waters. The 363 C.R.AX concession includes
the abandoned Nilde oil feld, formerly operated by Eni.
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GLOBAL E&P
stationary platform that will be used for drilling. All four platform
topsides and bridges are expected to be in place by year-end.
Middle East
More development phases are nearing completion at the South
Pars gas-condensate feld in the Persian Gulf. The export pipeline
has been laid between the Phase 22 facilities and the Iranian mainland, while a new platform at Phase 17 should enter service in January, adding 14.5 MMcm/d (500 MMcf/d) to the countrys output.
East Africa
Energean Oil & Gas has purchased the tender-assist rig Glen Esk
from KCA Deutag for use in a $225-million development program
offshore northwest Greece. The rig, to be renamed Energean Force,
is expected to start operations in early December. Energean plans to
drill 15 wells and install two new unmanned platforms on the Prinos
North and Epsilon felds.
Caspian Sea
Offshore delivery started last month of the topsides for the riser
block platform for Lukoils Vladimir Filanovsky feld in the Russian
sector. It will connect interfeld and export pipelines carrying oil
and gas. This month, transport was due to start on the ice-resistant
A second drillstem test on the deepwater Mzia gas discovery offshore Tanzania has reduced reservoir risk ahead of a planned development, according to operator BG Group. The DST was performed
on the Mzia-3 appraisal well in block 1 in 1,800 m (5,905 ft) of water,
6 km (3.7 mi) north of the discovery well, fowing up to 101 MMcf/d
(2.8 MMcm/d) of gas. BG now estimates recoverable resources
from blocks 1, 3, and 4 at 15 tcf (425 bcm). The drillship Deepsea
Metro-1 was due to transfer north to drill the Kamba-1 well in block 4.
Aminex has applied to Tanzanias Petroleum Development Co. to
convert an obligation for shallow-water seismic over its Nyuni Area
PSA to deepwater 3D seismic in the outboard sector. Aminex has
identifed a large prospect that appears analogous with other large
deepwater gas discoveries in neighboring blocks.
Increase production
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GLOBAL E&P
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CNOOC has brought onstream the Wenchang 13-6 oil feld in the Pearl River Mouth
basin offshore China. Water depth is 120 m
(393 ft). Facilities include a wellhead platform
with 12 producing wells, fve of which were in
service last month.
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1410OFF_17 17
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OFFSHORE EUROPE
Drilling technique
brings productivity gains
Statoil plans to step up use of Baker Hughes
SureTrak steerable drilling liner (SDL) service on its wells offshore Norway.
According to a presentation at ONS Stavanger, the company will employ the technique
on up to three wells this year after favorable
results on the Grane oil feld in the North Sea.
Next in line will be Oseberg in the same sector and Midgard in the Norwegian Sea, and
further applications could follow on greenfeld
developments including Johan Sverdrup and
Gina Krog.
According to Lars Hoier, Statoils senior vice
president research, development, and innovation: The normal approach is to drill through
a formation, pull [the drillstring] out, and then
bring in the liner. However, there is a lot of
risk with hole stability in certain formations,
and the process takes time. With SDL, you
bring in the liner while drilling, which leads to
increased well robustness. The technique also
enables drilling of sections considered undrillable, and allows more optimal well placement
in some reservoirs, with a higher IOR factor.
In time, we think this could replace conventional drilling on a regular basis.
Statoil frst challenged its vendors to devise a solution in 2004. Baker Hughes responded and worked with Statoil during the
subsequent four-year development phase.
The technique was frst trialed on a Norwegian feld in 2009-2010, followed by the frst
commercial applications in 2012-2013.
SureTrak employs proven rotary steerable/liner drilling technologies, including
the AutoTrak range. Aside from eliminating
the need to re-enter the borehole to run casing or liner, the rotary steerable system allows continuous drilling without the need to
slow down to change direction.
Geir Tungesvik, Statoils drilling & well
senior vice president, said that although
the heavy-oil Grane reservoir is generally
productive, there are sections with reactive
shales that were causing the liner to collapse
when retracting the drillstring. So we were
having to drill above these shales, leaving oil
we couldnt recover. Use of SDL has allowed
the company to access 350,000 bbl from the
feld that would otherwise have stayed in the
ground. Another potential application, Tungesvik said, could be on Statfjord in the North
Sea. Although the reservoir is depleted,
there may be further volumes underneath
which until now we havent been able to access due to pressure issues.
Norways growing
undeveloped resources
Denmark set
for further decline
Analysts Douglas-Westwood believe that Denmark could be a net importer of oil by 2021, with
the countrys North Sea production by that point
down to around 130,000 b/d, the lowest level
for 30 years. They point to continuing declines
in Denmarks North Sea felds, with production
halving this year to 192,000 b/d compared with
the peak of 389,000 b/d in 2004. A lack of large
discoveries has also held back the countrys upstream sector, they claim, while a paucity of fresh
developments has led to a decline in development drilling, with just eight development wells
drilled over the last three years.
In the mid-term well completions should
rise during development of the high-pressure/
high-temperature Hejre feld, although according to operator DONG Energy, work on
the topsides is behind schedule and this may
push back the start of production until 2017.
Douglas-Westwoods forecast does not take
into account the impact of two probable new
development projects. Maersk Oil & Gas has
submitted an $868-million plan to link the Adda
gas/condensate feld to its Tyra East complex
via a new 16-slot, unmanned platform and two
new subsea pipelines. Phase 1 calls for drilling of
eight wells, with start-up slated for late 2016.
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INTEVI
MY JDN IS READY
TO START AT -45C.
1410OFF_19 19
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GULF OF MEXICO
1410OFF_20 20
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NON-DESTRUCTIVE TESTING
Shaw Pipeline Services (SPS) offers a wide variety of inspections for the onshore and
offshore pipeline industry, with a primary focus on the inspection of pipe girth welds
utilizing both Real Time Radiography (RTR) and Automated Ultrasonic Testing (AUT)
techniques. The experience gained in over three decades of pipeline inspection has
allowed SPS to grow equipment and personnel pools of the highest standard, serving
clients around the globe. The focus of SPS is to build key strategic relationships to
allow effective and efcient development of projects from award through to completion
and with a research and development team continuing to improve the methods
and techniques. No project is too small, large or challenging. Whether working to
industry-wide specications or client-specic criteria, Shaw Pipeline Services has the
knowledge and experience to help make your pipeline installation project a success.
shawpipeline.com
1410OFF_21 21
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SUBSEA SYSTEMS
Subsea equipment
standardization
new DNV GL target
DNV GL has launched a new certifcation
scheme covering subsea equipment and
components. The target is to increase quality control and effciency through standardization.
Some of the benefts enumerated by DNV
GL of the new standard and certifcation are
as follows:
Provide a predictable set of documents
for integrators, equipment owners, or
operators; there will be a consistent set
of quality activities required of all suppliers in a project.
Reduce risk for the integrators and
owners by having much of the verifcation and review work completed on site
at sub-suppliers prior to being shipped
to integrators sites for assembly. Risks
will also be identifed at earlier stages
of a project.
Improve quality and, therefore, safety
by increasing the suppliers familiarity
with the requirements and specifcations via the unifed and effcient deployment of quality control plans for the
individual projects.
Reduce pressure on the global supply
chains by facilitating the use of subcontractors for inspection and surveillance
services.
Enable suppliers to stock long-lead
items. Short lead time is important in
the development of marginal felds and
tiebacks.
The DNV GL standard aims to help interpret existing API and ISO standards, and
the certifcate will provide operators with
confdence that fabrication quality is being
controlled and assured.
For operators, it will reduce costs without sacrifcing quality, innovation, or safety
and subsequently shorten lead times. For
suppliers, it will increase predictability and
enable the strategic stocking of long-lead
items, said Bjrn Sgrd, segment director
for subsea at DNV GL Oil & Gas.
In a related step, Statoil has asked DNV to
organize a joint industry project to develop
subsea processing equipment interface
standards.
Think of the modules as LEGO bricks.
By having standardized module dimensions
which may be assembled using standard tieins, we may combine technology from different suppliers and also cover several needs
through subsea solutions. This will reduce
costs and increase volume, says executive
vice president of Technology, Projects &
Drilling in Statoil, Margareth vrum.
Statoil believes that this standardization
initiative will help increase the number of
New vertical
subsea tree revealed
GE Oil & Gas has unveiled its Deepwater
Vertical Xmas Tree. It is rated for depths to
3,000 m (9,840 ft). It can be deployed with
GEs next-generation remote electronics
canister, the SemStar5-R. The company also
says its ModPod subsea control module
with a 220 km (137 mi) range is designed
to complement the DVXTs modular layout,
with a fexible network that can beneft future feld expansion and enhance access to
remote wells.
GE says the new tree expands its products portfolio of pre-engineered, pre-qualifed modular systems, designed to enable
products to be brought to market faster.
Petrobras has awarded GE Oil & Gas a
$300-million-plus contract to supply subsea
manifold systems for presalt felds offshore
Brazil, in water depths up to 6,500 ft (2,000 m).
The scope includes eight manifolds that
will feature retrievable injection modules to
allow water-alternated-gas injection for up to
four wells, and system integration with subsea controls.
All equipment will be manufactured in
Brazil.
In Brazil during Rio Oil & Gas, GE Oil &
Gas presented its work on the Naxys A10
integrated acoustic monitoring equipment.
The sensor uses acoustic sensing to identify
potential problems related to subsea operations and to fnd any leaks that may be harmful to the environment.
1410OFF_22 22
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The Subsea Production Alliance is designing integrated in-well and seabed production solutions
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Subsea
Production
Alliance
1410OFF_23 23
10/1/14 3:57 PM
Ulstein Group has introduced the X-STERN, a vessel design feature that increases operability through positive effects on station
keeping, wave response, comfort, and safety in harsh conditions.
An X-STERN vessel can stay on position in harsh weather with the
stern toward waves, wind, and current. For vessels where the best possible motion characteristics are vital, positioning the X-STERN toward
the weather instead of the bow will be the captains natural choice.
The X-STERN leads to reduced pitch and wave drift forces, and
also eliminates slamming. Positive effects are reduced power and
fuel consumption while on DP, or the possibility of operating in a
wider sector with the same power consumption.
The X-STERN has several of the same characteristics as the XBOW, and additional ice operation capabilities. Its gentle displacement reduces acceleration, pitch, and heave, improves comfort and
safety, and increases the operational window. There will be no sea
on deck, and reduced ice buildup in cold climates, due to the stern
shape and enclosed nature of the aft deck.
Damen Shiprepair Vlissingen has completed an upgrade of a Keppel Fels N-Class drilling rig, the Rowan Viking, one of the largest in the
North Sea, in 30 days less than was initially projected by the client.
The scope of the project involved extending three legs by 33 ft
to 591 ft (10 m to 180 m), a fve-yearly special periodic survey, and
bringing the rig up to standard for the acknowledgment of compliance (AoC) certifcation required by the Norwegian authorities.
To achieve this goal, Damen Shiprepair Vlissingen adopted a new
approach: a project execution plan that allowed the three aspects of
the contract to be undertaken simultaneously. To enable this to happen, changes had to be made both to working practices and to the
organization of the yard itself, Damen stated.
The use of a Mammoet crane and Palfngers JUMP system were
also critical elements. The PTC crane was delivered on more than 100
trucks and was erected to a height of 656 ft (200 m) on special permanent foundations installed to bear the loads. This allowed the rig to
remain at sea level and the leg extension pieces to be lifted directly
from the shore on to the legs for installation. Palfnger supplied the
platforms that allowed the engineers to move up and down the legs at
heights of up to 525 ft (160 m) for ftting and welding.
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Email: fluidcontrol@nov.com
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10/1/14 3:57 PM
Conservation takes
a different tack
There are many defnitions of the word
conservation. According to Websters New
Collegiate Dictionary, conservation is defned as conserving, preserving, guarding,
or protecting. When applied specifcally to
natural resources, it relates to maintenance
and supervision.
This editor suggests an additional defnition as applied to equipment or assets is extending useful life. The industry recently
experienced an excellent example of this latter defnition when Shell announced completion of its plan to use the Auger TLP to process production from its Cardamom feld.
Discovered in 1995, the Cardamom feld is
located in Garden Banks block 427, about 225
mi (362 km) southwest of New Orleans. Vertical depth to the reservoir is more than 25,000
ft (7,620 m). Water depth is greater than
2,720 ft (800 m), and the reservoir is subsalt,
making its discovery technically challenging.
The ultimate solution involved advanced exploration technology with its ability to image
beneath thick salt layers.
For its part, Shell exercised many of the
core principles of conservation in developing Cardamom production by making
maximum use of the existing Auger asset.
The decision was even more appropriate
considering that the Cardamom discovery
well was actually drilled from the Auger platform. Although the decision to use Auger
required additional expenditures, the net
effect saved considerable cost. The expenditures were needed to upgrade the existing
process train; install additional subsea receiving equipment; and increase the liquid
handling, cooling, and storage capacities.
Taking a global view, the decision was a
victory for conservation in many ways. First,
using the existing facility allowed Shell to tieback Cardamom wells to the mother ship
as they were completed. In fact, the frst
production from Cardamom began in 2010.
All the receiving and processing equipment
was already vetted, and had performed safely
and effciently for over two decades. This is
another way of saying that if there were any
bugs, they had certainly been remediated
by now. The tension-leg concept is a proven
one and several TLPs are currently producing oil around the world. Engineers deemed
that Auger had many years of useful life left.
Total gross ultimate recovery from Auger
was estimated at about 300 MMboe with a 2:1
gas/oil ratio. Cardamom ultimate recovery
is estimated at 35 MMboe. Augers production capacity at the outset was expected to be
about 42,000 b/d of oil and 125 MMcf/d of
gas, but two separate upgrade projects raised
capacity initially to 72,000 b/d of oil and 165
MMcf/d, and later to 100,000 b/d of oil and
Fram H-North turned out to be more diffcult than expected, while Svalin C encountered issues connected to deliveries of the
control system for the subsea template, resulting in a delayed production start.
Gazprom Neft Shelf LLC says that the Prirazlomnoye facility is the worlds first project involving
oil extraction on the Arctic shelf by means of a stationary platform. (Photo courtesy Gazprom Neft
Shelf LLC)
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10/1/14 3:57 PM
GEOSCIENCES
GAC Group has signed a frame agreement for ship agency services with Norwegian
seismic company Petroleum Geo-Services for its oil and gas exploration activities
globally. Under the agreement, GAC will provide support for vessels chartered and
owned by PGS calling at ports worldwide. (Photo courtesy PGS)
its frst contract valued at more than $1 million to supply software to a national oil company. This contract marks Dolphins entry
into supplying advanced and user friendly
processing software.
Dr. Gareth Williams, chief geophysicist, said
Our processing and imaging business is set for
rapid growth on the back of a larger feet, entry
to new market segments such as depth imaging and re-processing, and increased software
sales. To facilitate this growth, our Singapore
P&I team have recently moved into a larger
offce, our UK hub will relocate and expand in
3Q and we also expect our Houston processing
center to be operational in 4Q 2014.
Blueback Reservoir has released Blueback Toolbox plug-in for Petrel version 15.
The Blueback Toolbox suite contains Petrel function features not available in standard
Petrel. It has been developed by Blueback
Reservoir using Petrels Ocean development
framework. All functionality has been developed based on requests from Petrel users
around the world and the development is coordinated with the Petrel software teams at
Schlumberger.
Split into four domain modules, the Blueback Toolbox is a collection of more than
100 plug-in features complementing current
Petrel workfows and has proven to save
time for Petrel users, Blueback says.
Version 15 supports Petrel 2014 and the
new Ribbons user interface. In addition the
new version contains several new and advanced tools, like the wavelet editor which
allows the user to perform operations; like average, shift, and fip on one or more wavelets,
in addition to the waveform classifcation
that searches seismic data for matching waveforms to aid classifcation of seismic data and
identifcation of facies types.
Schlumberger has launched its Quanta
Geo photorealistic reservoir geology service.
The new service includes the industrys frst
microresistivity imager that produces oriented, photorealistic, core-like images of the
formation in wells drilled with oil-base mud
(OBM).
The physics of the Quanta Geo services
high-resolution array of 192 microelectrodes overcomes the electrically resistive
barrier imposed by OBM.
Using the companys Techlog wellbore
software, Quanta Geo data are rendered,
creating an image of 0.24-in. resolution that
resembles a whole core. Geologists interpret these images in the same manner that
they would perform continuous core description, with the added beneft that these
images cover a longer continuous interval
and are precisely oriented. This enables extraction of key reservoir parameters such
as the structural dip, or the identifcation of
sand body type, extent, and orientation.
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Legend
Sergipe Discovery Wells
Sergipe 2014 Phase 1 (New Acquistion) - 16,000 km
Sergipe 2013 Reprocessing - 8,130 km
License/Lease
1410OFF_29 29
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O F F S H O R E A U T O M AT I O N S O L U T I O N S
Best practices
Consider this incident in an onshore site. In Fischer-Tropsch processes hydrogen is produced by the water gas shift reaction: H2 +
CO + H2O = 2H2 + CO2 (1). During the startup of one of these units
at an Eastern European refnery, as reformed gas feed reached the
adiabatic shift reactor, the steam fow meter suddenly dropped to
zero and soon after the temperature readings in the bottom section
of the reactor started to get abnormally high. An instrument specialist was sent to check the steam fow meter and to replace the highreading thermocouples. With zero steam fow, the perceived heat
source, the temperature could not be going up.
When the specialist reached the reactor, saw that the bottom insulation had fallen off and a red-hot bulge was visible in the night.
The fow meter and the thermocouples readings were all correct.
With no water (steam) fow, reaction (1) is replaced by the highly
exothermic methanation reaction: 3H2 + CO = CH4 + H2O (2).
The startup was delayed for months and the losses aggravated by
site clean up and major equipment replacements.
Had this taken place offshore, the losses would have been much
Offshore processes
The chemistry and therefore the basic control strategy and operational philosophy of a given process are essentially the same in
onshore and offshore environments. However, a key difference is
the lower tolerance for incidents in offshore units. This results in
more demanding operating and maintenance standards where environmental liability risks and high mitigation costs can well preclude
moving certain processes offshore.
Offshore is essentially the same as facilities in coastal regions
where oil and gas facilities are common. The tilt and motion-induced
vibration in foating units may require attention in some areas like
special bearings in rotating equipment and operating conditions in
process equipment involving liquid-liquid or vapor-liquid contact
(e.g., scrubbers, absorption, distillation towers).
Blow downs and emergency dumping of vessels (e.g., reactors)
have to be carefully examined and avoided if possible. To make pro-
1410OFF_30 30
10/1/14 3:57 PM
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10/1/14 3:57 PM
R E G U L AT O R Y P E R S P E C T I V E S
Baker Donelson
Over the last year, the US Coast Guard
(USCG) has focused on normalizing the regulatory sphere on the outer continental shelf
(OCS) by making a concerted effort to give
industry defnitive parameters.
In February, the USCG Marine Safety and
Security Council released the winter issue of
its quarterly magazine Proceedings: Journal of
Safety and Security at Sea, entitled The Outer
Continental Shelf: One Shelf, One Standard.
The journal provided many insights into the
long- and short-term outlook regarding the
regulatory environment on the US OCS; and
noted the rapid technological advances that
have advanced OCS capabilities into deeper
offshore waters, outstripping the scope and
content of existing regulations.
In addition to the regulatory outlook set
forth in Proceedings, the USCGs rulemaking
over the last year has exhibited the One
Shelf, One Standard approach to regulating
industry on the OCS.
The USCG issued a notice of proposed
rulemaking (NPRM) to seek comment on a
proposed rule that would require all vessels
engaged in OCS activities including both
domestic- and foreign-fagged vessels to
develop, implement, and maintain a vesselspecifc [Safety and Environmental Management System (SEMS)] program that incorporates [API RP 75] . . . to be. . . compatible with
a designated lease operators SEMS required
under [BSEE] regulations. (78 Fed. Reg.
55230 [Sept. 10, 2013]).
This SEMS requirement would solve the
problem of BSEE-USCG overlap by rendering SEMS applicable to all vessels and facilities across the board on the OCS. This
proposed USCG SEMS rule also notes that
many vessels currently operating on the
OCS are subject to compliance with the Safety Management System (SMS) standards of
the International Safety Management (ISM)
Code (as promulgated by the International
Maritime Organization and applicable under
USCG regulations at 33 CFR Part 96).
Thus, the USCG is seeking comments
regarding whether the ISM SMS standards
(or even others issued by the International
Association of Drilling Contractors or International Standards Organization) could constitute as an alternative means of satisfying
SEMS requirements for OCS vessels.
Likewise, the USCG has issued two calls
for comments regarding a draft policy letter
on DP systems, emergency disconnect systems, blowout preventers, and related training and emergency procedures on mobile
offshore drilling units (MODUs) in light of
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1410OFF_33 33
10/1/14 3:57 PM
A U S T R A L I A U P D AT E
The hull of Shells Prelude FLNG
project is under construction at
the Samsung Heavy Industries
shipyard at Geoje, South Korea.
(All photos courtesy Shell)
1410OFF_34 34
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1410OFF_35 35
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LNG offoading arms which will transfer LNG from the facility to the ships
moored alongside two moving facilities
instead of just one.
We feel there is large potential for FLNG
projects going forward and many deployment
opportunities, said van Loon. We expect
Prelude to be the frst of many more FLNG
projects to come. We have developed a long
term relationship with TSC to ensure that the
key lessons and replication opportunities are
applied to our future FLNG projects. We are
working further partnerships and plays for
future projects.
Shell is the operator of Prelude FLNG in joint
venture with INPEX (17.5%), KOGAS (10%) and
OPIC (5%), and is working with long-term strategic partners Technip and Samsung Heavy Industries (the Technip Samsung Consortium).
FLNG will enable the development of gas resources ranging from clusters of smaller more
remote feldsto potentially larger feldsvia
multiple facilities where for a range of reasons
an onshore development is not viable, said Peter Voser, CEO, Royal Dutch Shell.
In addition, FLNG reduces the cost and environmental footprint of LNG development,
Voser explained, because there is no need for
long pipelines or onshore development such
as roads, laydown areas, and accommodation
facilities.
Voser also noted that Shell has established a
center of excellence for FLNG. We have called
it the FLNG Program Team, he said. This
team captures, applies, and extends key lessons
from Prelude FLNG. It provides a growing pool
of commercial and technical expertise for new
FLNG projects.
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1410OFF_37 37
10/1/14 3:57 PM
A U S T R A L I A U P D AT E
Ichthys project
reaches peak
construction activity
Wendy Laursen
Contributing Editor
ustralias Ichthys project is now offcially half way to completion. Three mega-projects in one, the Ichthys project will involve some of the largest offshore facilities in the industry,
signifcant onshore infrastructure, and an 889-km (552-mi)
pipeline connecting the two. When complete, the pipeline
will become the ffth-longest subsea pipeline in the world.
To date, all 889 km (552 mi) of the 42-in. pipeline has been produced and coated, and pipeline construction started mid-year. The
Saipem pipelay vessel Semac-1 is installing around 120 km (74.5 mi)
of pipe through Darwin Harbour and beyond before transferring it
to a deepwater lay barge, Saipems Castorone, which will take it all
the way to the Ichthys feld.
Throughout the year, 30,000 metric tons (33,069 tons) of equipment and 400 km (249 mi) of fexible and rigid lines will be installed
on the seabed to gather and distribute the process fuids to the wells
and the production liquids from them. Subsea structure fabrication
and rigid pipeline assembly is well advanced in McDermotts and
Heeremas yards in Batam. Flexible riser production is also in progress at various locations in Europe including the 110-m (360-ft) high,
7,000-metric ton (7,716-ton) riser support structure that will be installed by Heeremas deepwater construction vessel Aegir.
The production drilling rig Ensco 5006 is undergoing 175 days of
extensive upgrades before being towed to the feld to commence
drilling the frst production wells in October 2014. By 4Q 2014, the
frst topsides will be lifted on to the central processing platform
(CPF) and FPSO hull, paving the way for modules integration and
then commissioning.
Project scope
The Ichthys reservoirs are located in the Timor Sea around 200
km (124 mi) off the Western Australian coast, more than 800 km
(497 mi) southwest of Darwin. There are two geological horizons
with a total of around 12 tcf of gas and 500 MMbbl of condensate.
This makes it the largest discovery of hydrocarbon liquids in Australia in more than 40 years.
Once in production, most condensate will be transferred from the
CPF to the nearby FPSO for offshore processing. The remainder
will be sent to Darwin with the gas via the pipeline.
The huge FPSO one of the largest and most sophisticated to be
deployed worldwide will be positioned about 3 km from the CPF to
treat and export the condensate. The 336 m by 59 m (1,102 ft by 193.5
ft) hull has now been launched from the dry dock at the Daewoo Shipbuilding and Marine Engineering shipyard in Okpo, South Korea. Designed with a storage capacity of nearly 1.2 MMbbl, the FPSO will be
a weather-vaning ship-shaped vessel that will be permanently moored
on a non-disconnectable turret. The turret is one of the most complex
pieces of equipment used on the project.
Major contractors
The Ichthys reservoirs are located in the Timor Sea around 200 km (124
mi) off the Western Australian coast, and are projected to be the largest
discovery of hydrocarbon liquids in Australia in more than 40 years. (All
photos/images courtesy INPEX except where noted)
Some of the worlds best known contractors are engaged for the
project:
The CPF is being built by Samsung Heavy Industry, with Mustang as the detailed engineering subcontractor
The FPSO is being built by DSME, with Technip as the detailed
engineering contractor
All rotating equipment contracts have been awarded to GE in
Italy (Nuovo Pignone) and France (Thermodyne)
The FPSO turret is being built by SBM
1410OFF_38 38
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A U S T R A L I A U P D AT E
Pipeline challenges
The 42-in. pipeline has taken a total of one
and a half years to manufacture. It has 75,000
joints, 690,000 metric tons (76,059 tons) of
steel and will weigh 1.2 mega-tonnes (1.322
MM tons) including the concrete coating. It
will take a year to install with over 600 people working on the pipelay barge.
Jarrad Blinco is leading the pipeline team
at INPEX: We decided on using three mills
to provide supply chain redundancy and
schedule fexibility, he said. We had 100% of
their capacity for quite some time, but we sequenced the work to provide a steady, continuous supply of pipe to the coating yards.
The pipeline coating process starts with an
internal fow coat application to enhance the
fow performance characteristics of the gas
stream, followed by an external anti-corrosion
asphalt enamel coating. It is then coated externally with concrete of varying thicknesses to
provide additional weight which helps pipeline
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The Ichthys field will include an offshore central processing facility; a floating production, storage, and
offloading (FPSO) facility; tankers; and an 889-km (552-mi) subsea pipeline to move the gas to market.
www.offshore-mag.com October 2014 Offshore 39
1410OFF_39 39
10/1/14 3:57 PM
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A U S T R A L I A U P D AT E
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The Saipem Castorone deepwater pipelay vessel will take the project over from the Semac-1 once the
shallow-water sections of the pipeline are placed. (Photo courtesy Saipem)
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www.offshore-mag.com October 2014 Offshore 41
1410OFF_41 41
10/2/14 7:57 AM
A U S T R A L I A U P D AT E
Pipelines
An estimated 1,864 mi (3,000 km) of pipeline is planned offshore Australia over the
next 10 years at a cost of more than $15 billion, and with 30% of this relating to stabilization measures, operators have a vested interest in reducing pipeline cost.
Pipeline stability in Australia is uniquely challenging due to the onerous metocean and seabed conditions, and the prevalence of light gas
Wendy Laursen
Contributing Editor
The program has provided signifcant economic benefts to Woodside including the life
extension of one of Australias most important
pipeline assets the trunkline from the North
West Shelf Venture gas plant on the Burrup
Peninsula to the offshore North Rankin A platform. It has also been used for optimization
studies for Chevron Corp.s Wheatstone project pipelines, providing signifcant savings, according to the company.
O-Tube experiments allow direct measurement of the pressures applied to a pipeline by
cyclonic waves with up to 1 in 1,000-year return
periods. The changing topography of the seabed
is captured by digital imaging methods including binocular infrared scanning. This allows new
theoretical methods to be developed for predicting seabed morphology. Once calibrated against
the O-Tube results, these methods then provide
a basis to optimize the design of seabed pipelines
and other offshore infrastructure.
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D E E P WAT E R T E C H N O L O G Y
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D E E P WAT E R T E C H N O L O G Y
Feedstock
To atm
Pump
he business of advancing technology continues as the Research Partnership to Secure Energy for America (RPSEA)
moves forward with its transition into the role of technical
coordinator under NETL/DoE (National Energy Technology
Laboratory/US Department of Energy) management in 2015.
RPSEAs Ultra-Deepwater Conference recently held in Houston
not only reviewed the status of programs under way, but also took
a look ahead at how the organization might function in the future.
While RPSEA Strategic Advisory Committee representative Van
Romero of the New Mexico Institute of Mining & Technology noted
that there may be legislation to re-institute the program in the future, it would continue to function in its original form until the end
of this year. Taking up the explanation of near-term changes, James
Pappas, acting RPSEA president and Ultra-Deepwater Program vice
president, said the existing programs would be under NETL/DoE
management after years end, at which point RPSEA would become
the technical coordinator for ongoing research and development.
Moving beyond 2015, Pappas pointed at the US Department of the
Interiors Ocean Energy Safety Institute (OESI) program as one place
RPSEAs experience and abilities would be useful. OESI is intended to
facilitate exploration and production in collaboration with the public,
and has drilling as its initial focus. The Institute is designed to facilitate
research and development, training, verifcation of best available and
safest technology (BAST), and implementation of operational improvements in offshore drilling safety and environmental protection, blowout
containment, and oil spill response. It is functioning under a $5-million,
fve-year agreement with Texas A&M Engineering Experiment Stations (TEES) Mary Kay OConnor Process Safety Center in partnership with the University of Texas and the University of Houston.
This presents an opportunity, Pappas said, to overcome an information-sharing barrier among operators, and a place to collect data
on near-miss safety events, along with the establishment of common terms to improve recognition and discussion of such events.
He also said the establishment of BAST criteria requires industry
participation.
Other current and prospective joint industry projects (JIP) he
mentioned that could beneft from RPSEA participation included
the Paulson 3C downhole fber optics program, the Battelle work on
technology to replace air guns in seismic surveys, and the Bastionled work on a pyrotechnic intelligent subsea accumulator.
Technology reports
Reverse-circulation cementing
The fnal results of several JIPs along with interim status discussions were presented at the UDW conference.
Phase 1 of the Ultra-Deepwater Dry Tree System for Drilling and Production in the Gulf of Mexico was summarized by Jenny Yan Lu of DNV
GL. The project objective was to develop and mature two dry-tree drilling platform concepts that would be cost competitive with a spar. The
basis for the project was that with a dry tree, the well could be drilled,
completed, and worked over from the same foating platform. Also, such
Circulation in deepwater wells is a topic of research interest, too. RPSEA heard the fnal report on deepwater reverse-circulation primary
cementing from Crystal Wreden of CSI Technologies. The project objective was to assess reverse circulation cementing to reduce circulation pressure requirements in deepwater. Accessing the annulus from
the rig foor in deepwater is one hurdle, and new downhole tools may
be the answer. One such tool under development is a crossover design
based on a gravel pack tool that can work for both conventional and re-
Flow meters
Heater (3 zones)
Thermal
oxidizer
Process gas
Purge gas
Spinning gas
CNT product
Acetone spray
nozzle
Take-up spool
Schematic of the carbon nanotube manufacturing process being developed at NanoRidge Materials Inc. (Illustration courtesy RPSEA)
1410OFF_50 50
10/1/14 3:58 PM
1410OFF_51 51
10/1/14 3:58 PM
D E E P WAT E R T E C H N O L O G Y
become a detriment when cementing. The incompatibilities from cross contamination, mud
residue in the hole, fuid swapping, and other
fuid interactions can result in reduced compressive strength of the cement as well as result
in channelling, downhole gelation, and poor cement bonding. The frst phase of this investigation is concerned with the chemical reactions
between the mud and the cement. The second
phase is a large-scale model and feld trials, as
well as new spacer technology and practices.
Nanotube umbilicals
loads expected as projects go into deeper waters and cover longer distances. The work has
led to construction of a prototype double-wall
carbon nanotube wire with a polymer jacket.
The polymer jacket adds mechanical integrity,
abrasion resistance, and eases handling of the
conductor. According to Christopher Dyke of
NanoRidge Materials Inc., the presenter and
a principal investigator, the target is a conductor that matches the resistivity of copper (10-6
cm at 37.92 MPa/5,500 psi), but at less than
20% of the weight. At present, the program is
refning the prototype tool that produces the
carbon nanotube wire to optimize the purity because the wire must not have any amorphous
carbon and is working to meet the desired resistivity. The machine can manufacture 100-m
(328-ft) long carbon nanotube wires.
In a related but separate project, the GE
Global Research Center is early in a project to
develop high-voltage DC current subsea connectors. Qin Chen of GE said the connectors
are a critical part of the DC subsea electrifcation system, and pointed out that the connectors
needed both mechanical and electrical connections to function in that role. The frst phase of
the project is to establish the requirements for
such connectors and to compare them to the
existing hardware. The second phase will be
to design, qualify, and then build a prototype.
1410OFF_52 52
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1410OFF_53 53
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D E E P WAT E R T E C H N O L O G Y
Greg Kusinski
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1410OFF_54 54
10/1/14 3:58 PM
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1410OFF_55 55
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D E E P WAT E R T E C H N O L O G Y
lected design, which was developed in previous phases, will be manufactured and tested
for 20,000-psi design pressures. The second
project focuses on developing and demonstrating the reliable operation of a 20,000-psi
rated tubular based on the use of a PEEK and
carbon fber composite material.
1410OFF_56 56
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1410OFF_57 57
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60 YEARS OF OFFSHORE
Offshore at 60:
The Blue Water
breakthrough
Shells leadership
in the 1960s paved
way for deepwater
development
Tyler Priest
University of Iowa
1410OFF_58 58
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60 YEARS OF OFFSHORE
Collipp, immediately went to work designing and building scale models of ideas he
had for drilling platforms that would foat,
partially submerged, in the water. These,
he believed, would provide greater stability than the CUSS I, the ship-shaped drilling
vessel with which Shell and a consortium of
other companies (Continental, Union, and
Superior) had been experimenting with off
California.
Upon publication of the initial Call for Nominations for the 1960 federal lease sale in the
Gulf, the head of Shells New Orleans legal department, George Schoenberger, convinced
the Bureau of Land Management (BLM) to
withdraw the call and issue a new set of leasing maps with deeper acreage out to and beyond the 300-ft depth contour. With Shells
assistance, the BLM redrew the maps with
south additions to all the old original blocks
off Louisiana and issued a new call for nominations. It was a big sale. Offshore operators
spent $285 million in high bids for tracts offshore Texas and Louisiana, more than double
the amount spent in any previous sale. Shell
Oil acquired a number of tracts in the Grand
Isle Area South Addition, where no other company planned to drill.
The head offce ordered up a foating drill-
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1410OFF_60 60
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60 YEARS OF OFFSHORE
1410OFF_61 61
DurabandNC
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60 YEARS OF OFFSHORE
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60 YEARS OF OFFSHORE
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Acknowledgment
The author
10/1/14 3:58 PM
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60 YEARS OF OFFSHORE
Offshore milestones,
1999-2003
1999
2000
2001
2002
2003
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1410OFF_67 67
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60 YEARS OF OFFSHORE
1410OFF_68 68
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1410OFF_69 69
INDEPENDENCE
10/1/14 3:59 PM
Linda Gaas
Hue
Arne Skorstad
Tone Kraakenes
Roxar
A model-driven approach
As shared earth models require resolution
ranging from pore- to basin-scale, all aspects
of data management, manipulation, and visualization need to straddle this enormous
gap. Seismic data sets consume tens of
gigabytes of disk space, but these are
highly structured data sets that technologies such as HueSpace, coupled with
NVIDIA GPUs, can read and process at
gigabytes per second. Complex geologic
models and reservoir grids may be far
less structured, with representations
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Quantifying uncertainty
Conclusion
1410OFF_72 72
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#PGNG2015
PRESENTED BY:
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Baker Hughes
Schematics of possible liner drilling systems (left to right). The first three layouts
show standard liner drilling with an EZLine liner drilling system followed by an
EZLine control-set liner drilling system, and next a TORXS expandable liner hanger
system. The fourth illustration is a SureTrak steerable drilling liner system, and the
fifth layout is a casing drilling system with EZDrive casing manipulation tool. (Photos
courtesy Baker Hughes)
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A custom-built solution
All liner drilling assemblies have in common some type of nonretrievable casing drill shoe mounted on the end of the casing or
liner. The shoe comprises polycrystalline diamond compact (PDC)
cutting structures and drillable nozzles capable of either reaming to
the bottom of a pre-drilled hole or drilling a new hole. It can also be
drilled out by another PDC or tricone bit to allow drilling to continue
in the next section. The metallurgy of the bit is selected to provide
the necessary structural strength for the applications drilling parametersweight on bit, rotary speed, and torqueto reach the
section total depth. The casing bit shoe is also designed to improve
the hydraulics for cuttings removal from the face of the bit, and to
drill out easily with minimal risk of plugging the well or damaging
the formation.
Beyond the bit, there is no one size fts all solution to the equipment used in a liner drilling application. Rather, the system should
mirror the needs of the well, and the tools deployed depend on the
complexity of the wellbore, and the geometry and geology of the
reservoir. If a vertical well is to be drilled without the need for building angle, steering, or logging, a simple hydraulic balance liner drilling system can consist of a liner setting sleeve, Type I landing collar,
foat collar, and casing drill shoe. This is a robust system, capable of
operating at higher revolutions per minute (RPMs) and for longer
times down hole. However, this option does not include a top packer
or liner hanger, which places an upper limit on pumping rates and
circulating pressures.
When drilling into sections where higher circulation rates and
pressure spikes may lead to lost circulation, the liner drilling system may be equipped with a top packer and liner hanger assembly.
A liner drilling assembly that incorporates Baker Hughes TORXS
1410OFF_75 75
Cutting returned
with liner drilling.
hydraulic balance expandable liner hanger system, for example, affords higher RPMs of the drill bit in combination with an expandable
hanger system that allows for higher circulating pressures, better
handling of pressure spikes, and a cleaner wellbore while drilling.
The system incorporates ZX expandable seals to provide reliable top
10/1/14 3:59 PM
sealing and one-trip, two-stage setting without a plug bump. Additionally, the bypass
area is another key element of liner drilling
system, which allows better cleaning with
improved circulation pressure.
Higher RPMs not only shorten the time
required to drill the section, but also improve subsequent cementing operations.
Faster rotation of the bit assures more effcient drilling through potential trouble
zones to provide a wellbore with a straight
and smooth profle. Higher revolutions also
create smaller cuttings in a narrower size
distribution for more effcient circulation
out of the hole and a cleaner wellbore resulting in better cement bonding.
For other liner drilling applications, the
well may require additional reservoir information through logging, which can be used
to adjust the well path. This requires additional hardware on the liner assembly.
The SureTrak steerable drilling liner is
one option. It incorporates a rotary steerable
system with modular logging-while-drilling
and measurement-while-drilling systems.
This service acquires various real-time wellbore datasets, including pressure, resistivity, gamma, neutron and density, which allow
the rotary steerable system to drill continuously and change direction without slowing.
The choice of which type of liner drilling
system to deploy depends upon the wells
requirements, and must also account for the
added risks associated with more sophisticated assemblies, and the extra costs. For
example, the steerable drilling liner service
option may be cost prohibitive for a liner
drilling application in a vertical or deviated
section of the well (where steering or logging is not required), so the driller may decide to deploy the expandable liner hanger
system instead. If the liner section is shorter
and deployment of the expandable liner becomes too expensive, the driller may decide
to run a simpler assembly with no top packer or liner hanger.
(Above) A liner drilling system consisting of the TORXS expandable hanger and drill bit offshore
Mexico minimized lost circulation while maintaining the proper angle. (Below) SureTrak steerable
drilling liner service incorporates a rotary steerable system with modular logging-while-drilling and
measurement-while-drilling systems.
Case studies
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Weatherford
The Microflux control system manifold features a Coriolis mass flow meter
that delivers accurate flow monitoring to enable rapid identification of
losses and gains.
Easily deployed on the small jackup, the MPD closed loop system
included an RCD, manifold, and control system, along with an MGS.
(All images courtesy Weatherford)
1410OFF_78 78
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ling and applying constant bottom hole pressure (CBHP) in the 12-in. and 8-in. sections.
SBP was applied during pumps off events when
ECD was not affecting the annular pressure,
as well as during drilling to compensate for the
shortfall required to stay in the drilling window.
MPD operations
In planning a return to the feld, the historic
drilling problems and downhole uncertainty led
the operator to implement the full scale MPD
and closed-loop approach to well construction.
These problems were amplifed by abnormal
pressures, high temperatures that made the
mud diffcult to condition and control, very
low kick tolerance, and the need for a rapid
response to mud weight (MW) requirements.
The MPD system, including a mud gas separator (MGS), was installed on the small jackup
with no modifcations. MPD operations began
with fngerprinting to identify expected pressure trends, and in-casing tests to confrm and
fne-tune system operation. Tests in cased hole
were performed prior to drilling each new section to establish limits and procedures.
While not needed to drill the 12-in. section, MPD was conducted to provide operational exposure as well as to familiarize and
train the rig crew. MPD operations differ from
standard drilling operations and crew performance, and communications are important
to smooth MPD operations. For instance, it is
necessary to gradually ramp down the pump
rates when making connections to allow MPD
to compensate for the change in ECD.
The 12-in. section was drilled with statically
underbalanced mud of 12 to 9 ppg with bottom-
Critical testing
Use of DLOT and DPPDT was critical in defning drilling window limits. The data informed
decisions on what BHECD to hold. Hole
strength was also improved with stress gauge
material pumped in a DLOT mud squeeze.
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Dynamic leak off test (DLOT) is shown on Weatherfords Microflux control system interface.
www.offshore-mag.com October 2014 Offshore 79
1410OFF_79 79
10/1/14 3:59 PM
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Rare operations
Relatively rare closed loop coring operations
were performed in the 8-in. section. The closed
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Stephen OShea holds a BSc in geology from University College Cork, Ireland, and an MSc in petroleum
Unconventional solutions
Drilling the West Africa well was a challenge that had stood since the 1970s, when
it became obvious that conventional drilling
methods were not adequate for the task.
The application of MPD methods and closed
loop drilling technology provided an unconventional well construction solution. The successes
and versatility of the project provides a path forward for many prospects that have previously
been undrillable.
The authors
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E N G I N E E R I N G , C O N S T R U C T I O N , & I N S TA L L AT I O N
Jonathan Martinez
Dockwise
Why foat-over?
The foat-over installation approach has been proven for more
than 30 years, and is regaining interest from the oil and gas industry.
To determine if a foat-over installation is the best choice, one
needs to review the advantages and disadvantages.
Advantages
Reduced schedule interfaces
Reduced risk
Capacity
Minimize offshore exposure hours
Reduced offshore hookup and commissioning
Safety
Vessel availability
Cost savings
Disadvantages
Limited workability
Jacket slot requirements
Transport and installation support conditions
Float-over phases
From an operational point-of-view, there are several distinct phases
for a foat-over installation starting with the load-out phase. Requirements for the load-out stage are governed by the integrated topsides
weight, tidal range, and quayside dimensions. Following load-out, the
integrated topsides has to be fastened onboard the vessel for sea transport. After completion of the transit, the vessel needs fnal preparations
prior to the commencement of the actual docking operation of the vessel for the stand-off phase. Preparatory work needs to be executed
such as removal of sea fastenings, start-up of mooring/docking/mating
winches, start-up of motion and weather monitoring equipment, startup of active load-transfer system, and pre-ballasting of the vessel.
The vessel is then moved into the jacket for the docking phase.
Once the vessel is positioned directly above the jacket structure and
docked, the topsides legs have to be aligned with the jacket legs for
pre-mating. Once the topsides is lowered onto the jacket by the vessels rapid ballasting system where large quantities of water enter the
ballast tanks, enabling the vessel to submerge, the mating phase begins. The topsides weight is completely transferred onto the jacket.
For the post-mating phase, the topsides are secured on top of the
jacket and a clearance gap is created between the topsides support
unit and the vessel to ensure limited contact between the two. The
vessel then departs from the jacket slot on its own propulsion or
with assistance from tugs.
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E N G I N E E R I N G , C O N S T R U C T I O N , & I N S TA L L AT I O N
inside the jacket slot. The larger-sized topsides (15,000 tons) typically
have jacket leg clear spacing of around 151 ft (46 m). Assuming nominal
clearances, the vessel width is limited to no more than 138 ft (42 m).
Second, the vessel must be equipped with movable casings and designed with an open stern. To ensure the topsides is perfectly positioned
onboard the vessel, the casings, which facilitate balance and ballasting,
can be moved to best accommodate cargo. The open stern enables the
vessel to exit the jacket slot during the last phase of an installation.
Third, HTVs require suffcient strength and stability to support and
transport heavy topsides. Various engineering disciplines ensure the
cargo is precisely positioned on board the vessel. Prior to loading, the
vessel is outftted with fxed materials and equipment to safeguard the
load-out, transport, and installation. The equipment used depends on
the installation requirements.
Mooring system
The limitations
Workability
Based on the weather limitations for different directions of weather approach for different times of the year and for historical installation site weather data, the next step is to look at the potential workability for the foat-over.
Although the workability thus obtained will not be strictly deterministic, the result will guide the potential weather downtime for a
given installation period.
Another decision-making tool that can be installed is the vessel motion monitoring system. In this system, the real-time vessel motion
in 3D can be viewed along with its trend. When vessel motions are
within limits and the trend is favorable, operations can proceed.
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1410OFF_83 83
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SUBSEA
Jeremy Beckman
Editor, Europe
iemens is close to completing an initial test program on the four looking to transfer to the seabed include gas compression, water
main components (subsea transformer, subsea medium-voltage injection, multi-phase booster pumps, and subsea separation. Ac(MV) Switchgear, subsea variable speed drive, and subsea pow- cording to Subsea Technology Center director Jan Erik Lystad, oil
er control and communication system) of a proposed subsea companies have been telling us that they need more power to be dispower distribution hub. The Subsea Power Grid will be connect- tributed to multiple subsea consumers in order to reach out further
ed on the seafoor to the array of new equipment emerging for subsea to access more reservoir pockets.
production, processing and boosting. This should facilitate expansion
Current technology can transmit only limited amounts of power
of feld development into deeper water, longer step-outs, and more de- to the seabed, which does not allow connections to multiple equipmanding production environments.
ment items, or consumers, in an effective manner, Lystad explained.
Design of the grids subsea transformer, switchgear and variable- When each subsea consumer has to be connected to topside power
speed drives (VSDs), as well as the communication and control sys- distribution equipment via individual subsea cables this requires a lot
tem started in 2010. The subsequent engineering/test campaign has of topside space and riser capacity. That makes the operation both combeen conducted mainly at Siemens Subsea Technology Center in plex and costly, and it is not a viable solution for long step-outs, for a
Trondheim, Norway, since it was opened in September 2011, in co- large number of consumers, or for high-power requirements.
operation with Siemens locations in other countries. The 10,000-sq
By implementing a subsea power hub and grid, operators of subm (107,639-sq ft) facility in Trondheim includes a pressure test labo- sea felds will be able to distribute power more widely, Lystad notratory that can simulate ultra-deepwater
ed. In addition, the subsea power supply
conditions (up to 460 bar/6,672 psi) in 23
and distribution system eliminates a lot of
pressure vessels of different sizes. Initial
complexity. With the Subsea Power Grid,
testing of the individual Subsea Power Grid
there is just one high voltage (typically
(SPG) component prototypes is nearing
up to 100 kV) cable running from the surcompletion, and will be followed next year
face to the seabed to a subsea step-down
by extended shallow-water trials of the intransformer in the hub, where voltage
tegrated SPG in Trondheim harbor. One
will be reduced to 36 kV. Then the power
of the goals is to ensure that the system
is distributed through a medium-voltage
can remain in operation on the seafoor for
switchgear (one switch per consumer)
many years, without maintenance.
and on to individual variable-speed drives
The development, testing, and qualifor each pump, compressor, and so on.
fcation program is supported by ChevIn addition to reducing cable volume,
ron, ExxonMobil, Petrobras, and Statoil,
the Subsea Power Grid should enable inall noted for pushing the boundaries of
creased use of boosting closer to wells,
subsea and deepwater production. The
Lystad claimed. This will allow new altertechnologies they and other operators are Shallow-water transformer test in Trondheim.
native and less complex feld development
84 Offshore October 2014 www.offshore-mag.com
1410OFF_84 84
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SUBSEA
Test schedule
Interface potential
Siemens Subsea Power Grid is intended to be a comprehensive power supply and distribution system containing transformers, switchgear
and VSDs, and a fully redundant communication/control system, delivering power at customer-specifed rates to various subsea consumers.
Confgurations can be tailored according to the projects scope.
The equipment is being designed with open interface tools to ensure compatibility both with associated Siemens devices, such as the
subsea hydraulic power unit, and with other suppliers equipment.
Our goal is to provide a complete subsea power solution, said Bjrn
Rasch, Siemens head of Subsea Power, while the processing equipment such as booster pumps, gas compression units, and injection
kit will be delivered by other established players. Should new types
of consumers emerge with currently unforeseen power ratings, Siemens will further enhance the variety of confgurations accordingly.
One in-house item that will be linked to the various modules in
the Subsea Power Grid is a 45 kV wet-mateable connector system
developed by the companys UK-based Siemens Subsea connector
specialist, formerly known as Tronic. The wet-mateable connectors
connect all the different subsea power components with each other
and with the subsea consumers, Rasch noted.
The design of the power units in the Subsea Power Grid incorporates new, patented features to improve insulation performance,
reduce the risk of leakage, improve pressure compensation and provide ease of engagement/disengagement with ROV tooling.
Compared with conventional offshore topsides transformers, switchgear and VSDs, the design focus for the SPG has been on pressure-compensated technology with 100% natural cooling. This means the modules
are fuid-flled and most of the components operate under full pressure.
The fuid-flled and pressure-compensated design provides several advantages in terms of enhanced reliability, Siemens claims, including:
Effcient natural cooling without any moving parts
No differential pressure on penetrations to seawater, hence a
reduced risk of leakage
Very stable and safe environment for all components
Same design applies to all water depths
Enhanced insulation levels.
All the equipment is being qualifed according to the requirements
from our JIP partners, Rasch explained. We have been running a
comprehensive qualifcation program according to customer expectations and recommended practice from DNV. This started by qualifying
the technology from a component level before moving on to subassem-
1410OFF_85 85
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1410OFF_86 86
10/1/14 4:00 PM
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1410OFF_87 87
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MANAGING
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10/1/14 4:00 PM
tional breakdown of the fow are other areas where technology developments are taking place to reduce infuences on accuracy.
Measuring water conductivity and salinity also is increasingly important in the operation of multi-phase meters. Salinity is viewed as
a key operational parameter for reservoir management and fow assurance with salinity measurements telling the reservoir engineer
whether formation water is entering the fow, and helping the process engineer adjust injection rates of scale and corrosion inhibitors.
In water continuous fow, multi-phase meters are also dependent on
an input of water conductivity/salinity values to achieve their correct
performance specifcations. While variations in water salinity have no
infuence on the Roxar multi-phase meters measurements in process
conditions at less than ~60 water/liquid ratio WLR (i.e. oil continuous
fows), at higher water cuts the water conductivity is an important input
value to any multi-phase meter with signifcant sensitivity coeffcients.
For example, with a GVF at 80%, WLR at 60%, and a water conductivity change at +1% rel, the additional uncertainty would be a liquid
rate (% rel) at -0.1 % and WLR (% abs) at +0.6%.
Taking these infuence quantities into account, Emerson has developed two dedicated salinity/conductivity sensors for operation
in multi-phase and wet gas fow and that enable absolute measurements of produced water salinity. The wet gas probe measures salinity in wet gas and high GVFs and the multi-phase probe measures
salinity in water continuous multi-phase fow.
The dedicated salinity sensor for multi-phase fow is based on
microwave transmissions and can operate in three-phase gas-liquid
fows. The sensor measures the effect of the fow on the propagation
of the microwave signal in the volume between three probes, with
the salinity of the water phase and the local water/liquid ratio then
able to be deduced. The result is a better quantifcation of uncertainty and improved meter measurements.
y
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Operators face threats to fow assurance and multi-phase meter performance from hydrates the crystals that are formed in high-pressure
and low-temperature gas fows where water and natural gas are present.
The growth in deepwater wells with high GVFs, high pressures,
and low temperatures increase this threat, with gas hydrates the
most common form of downhole blockage. For multi-phase fows,
issues include formation of waxes, hydrates and scales; restrictions
and blockages; and corrosion and damage of equipment.
While thermodynamic inhibitors such as methanol and ethylene glycol (MEG) are currently the most effective ways to prevent hydrates,
they add measurement challenges of their own for multi-phase meters.
MEG is measured as water by the electrical impedance sensor
system of the multi-phase meter. The densities of these fuids are
lower than water, so the density of the mixed fow can be reduced
and, if a considerable amount of MEG is injected, could infuence
measurements from the gamma system.
To meet this circumstance, either subtract the MEG injection rate
from the reported water rate from the multi-phase meter or provide
water density input into the multi-phase meter. In this way, measurements can be updated that account for the combined density of the
expected water production and MEG/Methanol injection, thereby
removing the infuence quantity effect on the gamma system.
No deposits on turbocharger
Conclusion
1410OFF_89 89
BUSINESS BRIEFS
People
Robert R. Harl, CEO and director of
Willbros Group, has announced plans to retire
when his current employment agreement expires on Jan. 2, 2015. The companys board of
directors has elected John T. McNabb II as
executive chairman of the board on an interim
basis and has elected S. Miller Williams as
lead independent director.
GE Oil & Gas has appointed Patricia Vega
as president and CEO in Latin America.
McDermott International has appointed
Stuart Spence as executive vice president
and CFO.
The Society of Petroleum Engineers Aberdeen section has appointed Ross Lowdon as
chairman.
Baker Hughes Inc. has appointed Kimberly
A. Ross as senior vice president and CFO.
Bob Sonny Fogal has decided to retire
from front-line work as Zentechs director
of business development after more than 57
years in the offshore oil and gas industry.
He spent his entire career in the rig building
business, starting with Levingston Shipyard
and subsequent work with major designers
and builders in the US as well as Singapore,
Japan, China, Brazil, India, South Africa, and
the Middle East.
David L. Roland has joined Diamond
Offshore as senior vice president, general
counsel, and secretary.
Lloyds Register Energy has appointed
Joanna Pohorski as senior vice president,
Compliance Services.
Subsea 7 has reappointed Allen Stevens
and Robert Long to its board of directors.
J. Kevin Bartol has resigned as executive
vice president, CFO and treasurer of Rowan
Companies. The company has promoted
Melanie M. Trent to executive vice president,
general counsel and chief administrative
offcer and will assume responsibility for the
Legal function, as well as retain responsibility
for the Human Resources, Information Technology and Communications departments.
She succeeds John L. Buvens Jr., who is
retiring from after more than 30 years with the
company.
C.J. Cummings, Stewart Gossen, and
Conrad P. Kathol have resigned from Niko
Resources Ltd.s board of directors. Tim
Henry has resigned as vice president, general
counsel, and corporate secretary.
Petrobras CEO Maria das Graas Silva
has received the Global Pacifc & Partners
Award in the Offshore/Deepwater Player
category at the 20th Latin Oil Week, an event
held at the Copacabana Palace Hotel in Rio de
Janeiro. She also received an honorable mention as a Patron of the Global Women Petroleum & Energy Club, an association created
to bring together high-profle women in the oil
and gas sector throughout the world.
Trond Olsen has joined ClampOn as president. He succeeds Hans A. Wagner, who has
been named senior vice president - Business
Development.
Vikoma International Ltd. has appointed
Karen Lucas as general manager and director.
Edward Snyder, manager of instrument
engineering at William Jacob Management,
has successfully completed the University
of Alaska course in Fundamentals of Arctic
Engineering. The course is a prerequisite for
securing an Alaska professional engineering
license. In August his application for license as
a Registered Engineer for the state of Alaska
was approved.
Hugh Barrs has
joined Ceona as senior
vice president quality,
environment, safety, and
health.
Alex Imperial has
taken over as DNV GL
Oil & Gass regional
manager for South
America.
Barrs
Canadian Overseas
Petroleum Ltd. has appointed Dr. Richard
Mays as vice president of business development.
Sigma Cubed Inc. has appointed Mauricio Arboleda as executive vice president of
operations.
Deloitte Corporate
Finance LLC has named
Thomas W. Sloop as
managing director in its
Houston offce.
Walter Steedman has
been elected chairman
of the Offshore Survey
Division of the International Marine ContracSteedman
tors Association.
Lord David Owen
has resigned as a
member of Hyperdynamics Corp.s board of
directors. He also served
on the Nominating and
Corporate Governance
and Governmental Relations committees of the
board.
BMT Reliability ConOakley
sultants has appointed
Dan Oakley as sales
director.
Circulation Solutions has promoted Zach
Grichor to vice president of business development and Mark Laurent to vice president of
operations.
RigNet Inc. has named Pal Jensen vice
president -- Energy Maritime.
RMSpumptools has
appointed Ted Boeri as
vice president of global
sales.
SAL Heavy Lift
Singapore Pte Ltd. has
transferred Alexander
Poetz, a senior project
engineer and naval architect from its Hamburg
Poetz
headquarters, to its
Asia/Australasia base in
Singapore.
Ryan McPherson
has joined ProSep as
general manager for the
Middle East.
Nautronix has
appointed Thomas McCudden as global sales
manager for NASNet.
McPherson
Deborah McDonald
has joined Logan International as marketing
director.
Anne LeBoutillier has joined Ocean
Specialists as director
of global marketing and
business development.
2H Offshore has appointed Paul Hopkins
as principal engineer in
White
Norway.
Alan White has
joined Harkand as head
of engineering services
in Europe.
Christopher Salinas
has joined Alloy Metals
and Tubes International
as senior outside sales
representative.
Romy Mathew has
Salinas
joined SOR Inc. as
regional sales manager
in the Middle East.
Survivex has promoted Lisa Flint to human
resources director.
Bjrn Jalving,
executive vice president
Subsea at Kongsberg
Maritime, has received
the Compass Distinguished Achievement
Jalving
Award from the Marine
Technology Society for
his long career and achievements within AUV
technology. Jalving developed the control and
mission management system and was heavily
involved in system design of Kongsberg Maritimes HUGIN AUV. Jalving was responsible
for the team that designed and implemented
1410OFF_90 90
10/1/14 4:00 PM
BUSINESS BRIEFS
Company News
InterMoor UK Operations has completed
seven years and more than 2,300 projects
without a single lost-time incident. The safety
record includes the companies InterMoor
Ltd., InterMoor Marine Services Ltd. and
ChainCo and operations at three bases, fve
storage yards, and many quayside locations.
InterMoor also has opened a new storage,
maintenance, and inspection facility in Aberdeen, UK. The new base on a three-acre site
with a warehouse, 20 permanent onsite staff,
and a multi-million dollar mooring inventory
will support the companys global mooring
operations.
Acteon has acquired UTEC Survey to
enhances its global survey and data gathering
capabilities.
PMI Energy Services, a Superior Energy
Services company, has opened a shorebase
in Morgan City, Louisiana, to support shelf,
coastal, and inland waters production and drilling activities.
Aqualis Offshore has opened an offce in
Mexico City. The company will also establish
an operations offce in Ciudad del Carmen to
support offshore rig owners and oil service
companies.
Seatronics has partnered with Teledyne
RD Instruments Inc. to sell its marine measurement and navigation products. Seatronics
will sell Teledyne RD Instruments Acoustic
Doppler Current Proflers exclusively in Saudi
Arabia, UAE, Qatar, Oman, and Bahrain;
and will represent the company for Doppler
Velocity Logs (DVLs) nonexclusively in Qatar,
Saudi Arabia, Oman, and Bahrain. Seatronics
do Brasil Ltda will sell DVLs in Brazil on the
same, nonexclusive basis.
Premier Hytemp has invested $20 million
in a second precision engineering facility in
Singapore to service global oil and gas markets with components for wellheads, subsea
trees, valves, and downhole tools.
V.Group has concluded the acquisition of
Core-IRM, an inspection, repair, and maintenance services provider in Southeast Asia.
AGR has entered into a memorandum of
understanding with Antilles Oil and Gas NL
to assist in well planning, design, and execution, and to provide drilling capability.
Deltamarin Ltd. has established a subsidiary to enlarge the scope of the groups
naval architecture and engineering services.
1410OFF_91 91
10/1/14 4:00 PM
Hosted by:
OPTIMIZING
PERFORMANCE
INVITATION TO EXHIBIT
Offshore Middle East is the premier event dedicated to the offshore
exploration and production industries in the Gulf region.
Are you interested in exhibiting at the 5th Annual Offshore Middle East
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Contact your local representative today for details on how Offshore Middle
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host of available exhibiting and sponsorship options.
Desiree Reyes
The Americas
T: +1 713-963-6283
M: +1 281-785-7952
F: +1 713-963-6212
E: desireer@pennwell.com
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Australia, New Zealand,
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T: +61 8 9593 4405
M: +61 437 700 093
E: mike@energy-pubs.com.au
1410OFF_92 92
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Offshore reaches over 45,000 decision makers specifcally focused on offshore exploration and production
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Join hundreds of colleagues and exhibiting companies for this high-level technical conference and exhibition. Connect with key
decision makers and technical experts directly involved in the topsides industry. Over three days, Topsides, Platforms & Hulls will
feature presentations covering technical issues, business challenges and future trends, plus showcase and exhibition of products
and services from dozens of key engineering frms, contractors, suppliers and service providers.
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1410OFF_94 94
PRESENTED BY
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ADVERTISERS INDEX
SALES OFFICES
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Flat 8, 3rd foor (Oluwatobi House)
71 Allen Ave, Ikeja, Lagos, Nigeria
PHONE +234 805 687 2630 or +234 802 223 2864
Dele Olaoye q-she@inbox.com
M
Matrix Composites & Engineering, Ltd. ........... 43
matrixengineered.com
Mokveld Valves .................................................. 57
www.mokveld.com
D
Delmar Systems, Inc. ......................................... 42
www.delmarus.com
Delta Rigging & Tools ........................................ 53
www.deltarigging.com
DNV GL ............................................................... 15
dnvgl.com
Draeger ............................................................... 51
www.draeger.com
Dril-Quip ............................................................. 11
www.dril-quip.com
E
Enventure Global Technology........................... 16
enventuregt.com
F
FloaTEC .............................................................. 48
www.floatec.com
Fluid Control Services, Inc. .............................. 52
www.fluidcontrolservices.com
FMC Technologies ............................................ C4
www.fmctechologies.com
Forum Energy Technologies ............................. 49
f-e-t.com
Frank Mohn Flatoy AS ....................................... 31
www.framo.com
G
Gazprom International....................................... 33
gazprom-international.com
H
Hardbanding Solutions by Postle
Industries ..................................................... 61, 63
www.hardbandingsolutions.com
Hoover Materials Handling Group .........37, 39, 41
www.hooversolutions.com
Hornbeck Offshore Services............................. 71
www.hornbeckoffshore.com
O
OneSubsea ........................................................ C2
www.onesubsea.com
P
PennWell
Deepwater Operations
Conference & Exhibition ..............................36
www.deepwateroperations.com
Offshore Group .......................................40, 80
www.offshore-mag.com
Offshore Middle East
Conference & Exhibition ..............................92
www.offshoremiddleeast.com
Offshore West Africa
Conference & Exhibition ..............................88
www.offshorewestafrica.com
PNEC Conferences .......................................83
www.pnecconferences.com
POWER-GEN Natural Gas
Conference & Exhibition ..............................73
www.power-gennaturalgas.com
Subsea Tieback Forum .................................62
www.subseatiebackforum.com
Topsides, Platforms & Hulls
Conference & Exhibition ..............................94
www.topsidesevent.com
R
REPSOL .............................................................. 77
www.repsol.com
S
Schlumberger ...................................................... 3
www.slb.com
Shaw Pipeline Services.....................................21
shawpipeline.com
Spectrum GEO, Inc. ........................................... 29
www.spectrumasa.com
Spir Star, Inc. ......................................................16
www.spirstar.com
Superior Energy Services ...................................5
www.superiorenergy.com
T
Tenaris Global Services .................................... 69
www.tenaris.com
Tiger Offshore Rentals ...................................... 59
tigeroffshorerentals.com
TIW Corporation................................................... 6
www.tiwtools.com
Tomax AS............................................................ 47
www.tomax.no
U
UT99 .................................................................... 89
www.ut99.ch
Weatherford....................................................... C3
weatherford.com
Well Control School........................................... 79
www.wellcontrol.com
The index of page numbers is provided as a service. The
publisher does not assume any liability for error or omission.
1410OFF_95 95
10/1/14 4:00 PM
Development of a subsea
recommended safety practice
API RP 14C has long been the standard for Analysis, Design, Installation, and Testing of Basic Surface Safety Systems for Offshore
Production Platforms. However, with the emphasis on surface,
it has also long been understood that the concepts did not directly
translate to subsea facilities. It appears that engineering judgment
and the series of Notices to Lessees (NTLs) issued by the Minerals Management Service (now Bureau of Safety and Environmental
Enforcement) was all that was standing between a safe design and a
possible subsea failure.
The answer to this dilemma lies in the primary differences between what API RP 14C has relied on almost exclusively for its
primary protection (relief valves to protect platform facilities), and
what subsea systems have relied on almost exclusively full pressure containment. Another difference is the trend toward extremely
deep HP/HT reservoirs in ultra-deepwater. Increasingly, such reservoirs challenge the limits of current technology and design, and
some concession to the full pressure containment model is to be
expected.
Policy makers and standard-setting authorities would be well advised to consider the adoption of standards for high-integrity pressure protection systems (HIPPS), as well as subsea processing.
They should also account for a growing desire by the regulators
to step back from prescribing the minimum required standards for
subsea safety through NTLs.
Regulators ultimately want experienced industry personnel to establish the minimum standard rather than the regulators prescribing one through NTLs. This minimum standard should be based on
accepted industry practice, working through the API. To address
these concerns, the BSEE proposed to the API SC17 Committee
that any document designed to address subsea safety be based on
API RP 14C principles.
In turn, the API SC 17 Committee assigned a task group to adapt
the principles of API RP 14C to an RP for subsea safety using todays
standard industry practices. One important difference is that having a minimum foor implies that required expectations are established for everyone. That is more or less what a standard does.
An RP provides a list of best industry practices that may or may not
apply in every case. Those practices may not be minimums; rather,
they are what the industry recognizes as acceptable. Therefore
sound engineering judgment still must be applied.
It was also recognized that while a risk-based approach to safety
was becoming almost universal, the imposition of a minimum foor
through an almost prescriptive recommended practice did not pre-
clude the use of the risk-based approach. This was true as long as
the minimum prescriptive practices were applied where applicable.
One critical area that led to multiple reconsiderations was the
scope break between the topside safety and subsea safety. Many in
the industry want to set that break at the limits of a specifc contractors scope of work. However, it is important that the topside/subsea
safety system interface be carefully managed from a pressure, temperature, and fow spec break with proper shutdowns and isolation
to ensure proper personnel protection. This does not always make
for clean scope-of-work breaks.
Another area that led to much discussion by the task group was
the inclusion of chemical injection systems. There was much debate
on whether check valves, often used subsea to prevent backfow into
the umbilical system, should be considered as barriers and whether
they are in fact part of the safety system. Generally, the belief was
that a check valve was not a safety barrier due to the inability to test
it with reverse fow, which would curtail the injections needed for
fow assurance. Yet these systems and personnel were protected on
the topside facilities by the application of API RP 14C beyond the
scope break between API RP 14C and API RP 17V.
The fnal determination tended to hinge on having the RP incorporate current standard subsea design practices as applied by the
industry, and only incorporate changes where industry practice is
determined to be defcient. Given the good operating record of the
subsea installations to date, there was no justifcation for any major
changes to the generally accepted practices.
The development of a new recommended safety practice reinforces this authors belief that there are key differences between subsea
to topsides to the point that API RP 14C is not applicable. Yet, it also
reinforces the idea that the approach used in the development of
the safe charts and safety analysis tables used by API 14C is a viable way to analyze the design to ensure safety and environmental
soundness.
If used properly, an RP helps those with less experience understand the risks, particularly when applying risk-based management
of safety. It sets a minimum foor. This was the task that BSEE asked
the API to do. The recommendation here is that industry embrace
one of the newest additions to API SC17 Recommended Practices:
API RP 17V Recommended Practice for Analysis, Design, Installation, and Testing of Safety Systems for Subsea Applications.
Marc S. Young, PE
This page refects viewpoints on the political, economic, cultural, technological, and environmental issues that shape the future of the petroleum industry. Offshore
Magazine invites you to share your thoughts. Email your Beyond the Horizon manuscript to David Paganie at davidp@pennwell.com.
1410OFF_96 96
10/1/14 4:00 PM
ASSURING
WELL INTEGRITY
1410OFF_C3 3
weatherford.com/98
Formation Evaluation
Well Construction
Production
10/1/14 4:01 PM
Accelerate
production now.
www.fmctechnologies.com
1410OFF_C4 4
10/1/14 4:01 PM
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1410OFFFocusReports_2 2
9/29/14 11:32 AM
advertisement
PART III
SINGAPORE
KNOWLEDGE AND NETWORK
OCTOBER 2014
1410OFFFocusReports_3 3
ENERGYBOARDROOM.COM
9/29/14 11:32 AM
developed a truly prestigious reputation for producing high quality oil and gas equipment. The country
Matthew
J. Aguiar,
Chairman &
Managing
Director,
Asia Pacific,
ExxonMobil
state is actively pursuing policies to secure key players. Singapore is channeling a lot of effort into
says Kiang.
facility.
Andy Milnes,
CEO, Integrated
Supply &
Trading, Eastern
Hemisphere, BP
and is already a world-class port, trusted financial center and major oil
trading hub, says John Ng, CEO of Singapore LNG. We also have
an LNG terminal that is built with the future in mind with the capability
to efficiently unload, store and reload LNG cargo for import and ex-
are definitely seeking to forward their oil and gas industries too. Some
LNG is the major energy source for the future, and Singapore has the
this is not necessarily the case. Business interests are intertwined across
1410OFFFocusReports_4 4
ENERGYBOARDROOM.COM
OCTOBER 2014
9/29/14 11:32 AM
are from the region, but many of them do not get their training here. If they
Paul Carsten
Pedersen, CEO,
Jasper Offshore
would come to Singapore and train at the center, they can receive certified
training which has Singapores stamp of quality attached to it. This acts as a
further revenue stream for the center.
Pedersen based upon his diverse management career - lays out a cohesive
national blueprint to abate and ultimately help solve this potent issue.
tages is the fact that Singaporeans are reluctant to work abroad, particularly
Taking the lead from the aeronautic industry, Singapore should take the
easy step and invest in a simulator-based training center, which will act as
the nucleus for drilling activities. The focus will be on developing candidates
for top jobs in operations, but with candidates spilling into rig building and
a national drilling vehicle, Singapore can foster an enduring link between its
nationals and the oil service industry. The sovereign fund Temasek already
practical and well-paid work offshore, the curriculum will help to reshape
evolving nation that is always looking to be one step ahead of the game
and prepared to invest public funds to create work places with long-term
Pedersen started in the Maersk Group in 1981 after finishing university with
drilling technology who will look to developing the equipment for the new
NAVIGATING
THE REGION
Singapores Economic Development
OCTOBER 2014
1410OFFFocusReports_5 5
ENERGYBOARDROOM.COM
9/29/14 11:32 AM
projects.
quarter of 2014, growing from SGD 1.05 billion to SGD 1.34 billion
(USD 872 million to USD 1.11 billion). Whilst figures like this paint
a rosy picture, the full story is less positive, with gross margins
Mark Beretta,
COO, KTL
Offshore
issue.
Some worry that there are weak links in the chain that connects
share of the wealth that comes from courting the oil and gas sector.
ates oil rigs for deep sea drilling that are contracted out to oil and
laws.
laysia that is nearly as large as our current one here, says Mark
1410OFFFocusReports_6 6
ENERGYBOARDROOM.COM
OCTOBER 2014
9/29/14 11:32 AM
has a deeply ingrained desire to succeed and will supply the neces-
ing hub; there is simply too much invested here for that to change,
Singapores high costs are pressuring some businesses into seeking less fiscally strenuous
surroundings.
Paul Cornelius,
Partner,
Corporate and
International
Tax, PwC
to gain traction because the market and network have been and
a robust player that will not tumble easily. Arguably, much of the
simply a more mature economic unit. This city runs against the
mantra of the oil and gas industry: that risk begets reward. Instead,
Singapores success is built on its stability, but the cost of this stabil-
OCTOBER 2014
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n 2012, regional conglomerate Jebsen & Jessen (SEA) completed the pur-
As new as the offshore and marine sectors might be for the group,
Originally a trading company founded in Hong Kong in 1895, the Jebsen &
dent groups operating from Hong Kong, Singapore, Hamburg and Perth.
Established in 1963, the Southeast Asian part Jebsen & Jessen (SEA) is one
chemicals.
Heinrich Jessen,
Chairman,
Jebsen & Jessen
SEA
back-office excellence, Group Chairman Heinrich Jessen, has big plans for
the new unit. Unlike most of its business units that focus on ASEAN markets,
Heinrich Jessen explains that Jebsen & Jessen Offshore is one of the busi-
nesses that we have global ambitions for, beyond the region. The unit re-
sen Offshore into a reliable and trusted supplier of tier one products and
services.
Aw Chin Leng,
Regional
Managing
Director, Jebsen
& Jessen
titan Indonesia remains a country of considerable potential and a perfect market for a
company of our size, though uncertain political and fiscal policies have resulted in a lot of
particularly interested in
missed opportunities in that country, says Francis Chang, CEO of RH Petrogas, an explora-
tion and production company, referring to the countrys proven oil and gas reserves, which
currently stand at 3.7 billion barrels of oil and 101.54 Tcf of gas.
Malaysia is another country which has good hydrocarbon potential. We will continue
to explore new opportunities, including marginal field development, in the country, Chang
Francis Chang,
CEO, RH
Petrogas
6.8
6.2
6.0 6.1
5.8 5.9
5.5 5.6
5.1
6.5
6.4
5.1
5.3
5.1
4.9
5.3
4.9
4
3.3
2.3 2.4
targets.
2
1.3
1
0
Indonesia
Malaysia
Philippines
Singapore
Thailand
cabotage regime, and there are risks to foreign owners associated with such policy that
2000-07 (avg.)
2012
2018
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business.
repair hub, with the majority of the companys dry docks and upgrade
Andrew Coccoli,
General
Manager,
Farstad Shipping
INTERTWINED INTERESTS
bigger fish.
Jaganathan,
Group Executive
Chairman,
Global Oil 57
Cape is an international
leader in the provision
of critical industrial
services principally to
the energy and natural
resources sectors.
Our multi-disciplinary service offering
includes access systems, insulation,
specialist coatings, refractory linings and
a range of specialist services including
environmental services, tank storage and
thermal equipment. Cape employs over
18,000 people working across 21 countries.
www.capeplc.com
OCTOBER 2014
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them.
Policymakers are aware of the importance of
constructive cooperation too: the OECDs Economic Outlook for Southeast Asia, India and China
2014 notes that one of Singapores strategic ob-
Paul Kang,
Senior Partner,
Head of
Southeast
Asia, Headland
Capital Partners
Hendrik
ten Hoeve,
Managing
Director,
Compass Energy
are essential for one to be able to penetrate any market. One has
to be able to recognize these key figures, and connecting with them
successes for Global Oil 57. This enterprise started as a very small
the company has built rapport with its partners, says the chairman.
interests are clearly at play, not everyone will produce the same
business are prevalent in Southeast Asia -we have sat down with
many such entities and seek to help them in meeting their goals
support the increase in trade. Integra can help to fill this logistics
10
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Your trading
partner around
the world
Yves J.G.
De Leeneer,
Managing
Director,
Deepblue
comes as no surprise that the city-state is of paramount importance given the nations international
leadership in the segment and the concentration
Integra Petrochemicals
Pte Ltd
2 Battery Road
22-01 Maybank Tower
Singapore 049907
+65 6220 9895
Integra SA
133 Chaussee de
Tervuren
1410 Waterloo
Brussels
Belgium
+32 2 354 6862
Integra US Marketing
LLC
Galleria Financial Center
5075 Westheimer Road
Houston
Texas 77056
USA
+1 713 224 2044
Integra Petrochemicals
China
3-6 Ju Jun
28 Li Tang Road
Changping District
Beijing 102211
China
+86 10 617 93262
Integra Petrochemicals
Korea
10th Backsang Bldg
197-28
Kwanhoon-Dong
Chongno-Gu
Seoul 110-718
South Korea
+82 2 725 9007
Integra Riyadh
P.O Box No 25196
Riyadh 11466
Kingdom of Saudi Arabia
+96 61 242 1093
important oil and gas hub for players across the value chain.
www.integra-global.com
oriented company. However, we started here and will stay here and
might expand to Kuala Lumpur in the near future. There is an
are being built, and regional business decisions are conjured and
negotiated here.
Business decisions are made in Singapore, planning how best
OCTOBER 2014
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9/29/14 11:32 AM
It is clear that in many ways, the retirement of experienced, knowledgeable staff can be as significant
a problem as repair of aged platforms. KBC seeks to
Tom Kers,
partner, KBC
Advanced
Technologies
help alleviate the loss of skills in part caused by a shortage of talent. our Petro-SIM 5 software is the only purpose-built rigorous
Steven
Kantorowicz,
Vice President
Petrochemicals,
KBC Advanced
Technologies
duction processes by USD 10-20 per ton with little capital cost, highlights
Steven Kantorowicz, VP of petrochemicals at KBC.
from across the world. Tunge of OSM Ship Management states that
examine the various inputs and metrics and return to the client with
of the oil and gas industry thanks to the city-states level of economic
Even in the lifting and rigging business, the need for diversity is
apparent. One clear trend in the lift industry is the transition into
and almost USD 200 million invested in Kreuz, and, for Headland,
cranes, says Beretta of KTL Offshore Gone are the days where a
these are the largest investments ever, says Kang. I believe that
in the offshore space, these two businesses are best in class. Such
thorough technical analysis and input from our side before we can
approach.
12
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Technology and quality are the cornerstone principals of our organization, says Beretta, reflecting values that could be said to be
Vincent Tan,
Managing
Director, MTQ
stands the necessity of being able to transfer these skills through con-
Steve Connolly,
COO, Cape PLC
now offer, and we are assessing a number of opportunities at the moment in the region. The stor-
Gary McLean,
Business
Development
Director, Cape
PLC
Capes future- the business has a small order book here at the moment,
Tank cleaning technology and also the traditional Cape core trades
veloped and more complex and challenging projects moving forwards to secure marginal resources,
individuals able to deliver success in these projects
are ever more valuable.
The shortage of staff in this area is something
that Swift is seeking to address for its clients. Each
Charles
Pfauwadel,
Managing
Director, Swift
Singapore
14
1410OFFFocusReports_14 14
ExxonMobil Singapore
Parallel Train (SPT)
project, Jorong Island,
Courtesy of Cape PLC
ENERGYBOARDROOM.COM
OCTOBER 2014
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the tiers of clients need for equipment. In expanding our offering, the
business is also building a deeper relationship with its clients.
Since Singapores stock exchange, the SGX, was founded in 1999, the number
of mineral, oil and gas companies (MOG) has increased steadily. The prolif-
the SGX. Linc Energy, a diversified energy companys move to list in Singapore
from the ASX in Sydney in December 2013 was indicative of the growing
interest in Singapore as a key location in Asia for oil and gas companies to
more important what a given market denotes for a company. MOG companies
are attracted to list on the SGX because of the matching industry clusters
we have here and because we are perceived as a far more international and
JK Low , CFO,
Viking Offshore
Marine
Lawrence Wong,
Executive Vice
President &
Head of Listings,
SGX
Kris Energys listing in 2013 saw the exchange begin to formalize the rules that impact
energy and resource companies whose shares are held on the main board of the exchange.
These had previously not been fully matured due to the relatively recent maturing of the ex-
change but will now add to the supportive regulatory framework that facilitates business here.
JASPER EX PLOR ER
DP2 DRILLSHIP
Wells campaign
Completed
with success...
markets.
...And going
to commence
the next well
campaign
knows that clients appreciate our aim of becoming a truly one stop shop suppliermeaning far less organizational hassle for
OCTOBER 2014
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9/29/14 11:32 AM
Nathan Oliver,
Regional
President,
Asia Pacific
MultiClient, PGS
A Clearer Image
Explore the science behind the technology at
www.pgs.com
Services in Singapore. For instance, on the ASX, TSX and AIM, smaller
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companies.
Simon Crellin,
Director,
Deloitte
Petroleum
Services
Mans Lidgren,
CEO, Rex
Energy
market. Despite a surge in IPOs from this sector to the SGX, the ex-
change for listed O&G companies is still a fledgling and rather immature
home. I would like there to be more proper, two way dialogue between
expanding.
naturally gravitate to London for their IPOs as it has one of the largest
standing are traits that competent oil investors should embrace, and
has eight listed companies, and we prefer to be one of the few than
one of the many. Additionally, there is a need for foreign and local
market.
pad for fully listed companies, did not happen instantly, and this is
listed in Singapore.
over the years. Established in 1998, we have leapt from a mere service
When asked what it will take for Singapore to become a key invest-
Teo, the CEO of Nordic Flow Control. In 1998, we were a tiny company
a lot of effort to educate the mining and oil and gas community.
consisting of five people and two desks. Over time, we have established
is that the market is more attuned to the risks associated with the
service companies.
need another three or four companies like Kris Energy to come through
onto the SGX to really evolve the exchange into a sector powerhouse.
A further development in Singapores capital markets has been the
growth of the analyst community, which I view as essential. They are
partly responsible for making recommendations on companiess and
have thecapacity to stir the investment community to invest.
Singapore is critical to the companys holistic development and
to the future of our assets here, says Kang of Headland Capital Partners. Being based in Singapore is very important because it allows
us to operate in a business ecosystem that is transparent, stable and
business friendly all traits that are instrumental for a private equity
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