Offshore Magazine November 2015

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November 2015
World Trends and Technology for Offshore Oil and Gas Operations
Arctic
update
Ultra deepwater
platforms
Subsea
standardization
Broadband
seismic
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SI ple
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ENGINEERING VESSEL DESIGN CONSTRUCTION MANAGEMENT FACILITIES ENGINEERING MANAGEMENT

MARINE OPERATIONS & HEAV Y LIFT SERVICES OFFSHORE SERVICES ARCTIC LOGISTICS & OPERATIONS
International Edition
Volume 75, Number 11
November 2015
Celebrating 60 Years of Trends, Tools, and Technology
CONTENTS
CASPIAN SEA UPDATE

Caspian Sea could satiate growing demand for gas ............. 30
DRILLING & COMPLETION

New circulation sub improves lost circulation mitigation ..... 46
Considered one of the oldest hydrocarbons producing areas in the

world, the Caspian region could make a significant contribution to the
global gas balance. Capex spending in the Caspian region is estimated
to reach $55 billion between 2015 and 2020, and the area is estimated to
hold more than 200 Bbbl of crude worth $4 trillion, according to the US
Department of Energy.
Drilling through a lost-circulation zone is a complex challenge that

involves many variables, including formation porosity, hydrostatic
pressure, and rate of penetration. As demonstrated on a recent job in
the North Sea, on-demand actuation of the JetStream radio-frequency
identification circulation sub enables drillers to quickly and precisely
spot multiple lost-circulation material pills of various types.
BLACK SEA UPDATE

Turkish Stream pipeline project still under study .................. 32
Geospatial navigation and analysis

service increases well construction efficiency ...................... 50
Officials from the Russian and Turkish governments, along with their
national oil and gas companies, are still weighing their options for the
construction of the proposed Turkish Stream natural gas pipeline system.
Despite a number of apparent setbacks over the summer, Turkish and
Russian officials insist that the project is still on course and will be built.
OFFSHORE CANADA UPDATE

Newfoundland and Labrador opens
frontier Flemish Pass blocks for licensing ............................. 34
Resources in the Flemish Pass area offshore eastern Newfoundland
could amount to 12 Bbbl of oil and 113 tcf of gas, according to a new report. It is the first time the provincial government has issued a resource
assessment ahead of a licensing round, and is also the first call for bids
offshore under the provinces new Scheduled Land Tenure Regime.
ARCTIC UPDATE
JIP examines Arctic oil spill response systems ..................... 36
Oil response technologies in the Arctic are the focus of a significant
research program led by nine major oil and gas companies; their goal is
to further advance a range of oil spill response technologies and methodologies in the Arctic. Results so far demonstrate the potential viability
of multiple oil spill response technologies in arctic conditions.
Arctic OSVs enter new regulatory environment ..................... 40

Growing industry interest in Arctic E&P has brought about a number of
regulatory changes in the international arena. One of the most noteworthy of these was the official adoption by the International Maritime Organization of the final remaining parts of the International Code for Ships
Operating in Polar Waters; aka the Polar Code. The goal of this IMO-led
initiative is to promote safety and reduce environmental pollution from
the growing number of vessels operating in Arctic and Antarctic waters.
GEOLOGY & GEOPHYSICS

Processing-based broadband enhances
image quality in frontier areas................................................ 42
In recent years, there has been a significant amount of research and development related to marine broadband technology, both to remove the
effect of the marine ghosts, and to obtain a broader bandwidth of useable
seismic frequencies. The authors examine a processing-based broadband
solution that can help improve imaging in frontier regions or underexplored areas using conventional flat streamer acquisition configuration.
In complex geological formations, optimizing wellbore placement presents a difficult challenge. Failure to mitigate reservoir uncertainty often
results in suboptimal ultimate recovery and increased nonproductive
time. A new geospatial navigation and analysis service increases well
construction efficiency by reducing seismic uncertainty and avoiding
costly pilot holes and unplanned geological side tracks.
ENGINEERING, CONSTRUCTION,
& INSTALLATION
Risk levels, anticipated payoff
dictate field development strategy ......................................... 54
The author explores two projects exhibiting similar conceptual designs,
Lula in Brazils Santos basin and Quad204 in the UK North Sea, to
contrast ways in which field development strategies can evolve under
different economic conditions. These two projects also represent different states of technological advancement.
PRODUCTION OPERATIONS
Study assesses challenges of extending
spars and semis into ultra-deepwater ................................... 60
Recently, Granherne conducted a study on the impact of extending
semisubmersible and truss spar designs to 4,500 m (14,764 ft) water
depths. The study involved using DNV GLs Sesam DeepC suite of
software to conduct fully coupled nonlinear time domain global performance analyses for both semisub and truss spar designs for 2,500
m (8,202 ft) and 4,500 m water depths. The results indicated that it is
feasible to extend conventional truss spar and semisub platforms out to
4,500 m water depths.
SUBSEA
Joint industry project seeks
to advance subsea standardization ........................................ 66
Falling oil prices have forced the subsea industry to reassess what
counts as best practice in the manufacturing and employment of
subsea equipment. To this end, the industry has begun a series of
joint industry projects, led by DNV GL, to set guidelines and recommended practices in five areas: re-engineering, workovers, component
catalogues, compliance with established standards, and standardized
documentation.
Offshore (ISSN 0030-0608). Offshore is published 12 times a year, monthly, by PennWell Corporation, 1421 S. Sheridan, Tulsa, OK 74112. Periodicals postage paid at Tulsa, OK 74112 and at
additional mailing offices. SUBSCRIPTION PRICES: US $123.00 per year, Canada/Mexico $145.00 per year, All other countries $202.00 per year (Airmail delivery $283.00). Worldwide digital
subscriptions: $123.00 per year. POSTMASTER: Send address corrections to Offshore, P.O. Box 3264, Northbrook, IL 60065-3264. Offshore is a registered trademark. PennWell Corporation
2015. All rights reserved. Reproduction in whole or in part without permission is prohibited. Permission, however, is granted for employees of corporations licensed under the Annual Authorization Service offered by the Copyright Clearance Center Inc. (CCC), 222 Rosewood Drive, Danvers, Mass. 01923, or by calling CCCs Customer Relations Department at 978-750-8400 prior to
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Publications Mail Agreement no. 40612608.
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COVER: Growing industry interest

in Arctic E&P has brought about a
number of regulatory changes in the
international offshore arena. One of
the most noteworthy of these was
the official adoption on May 15, 2015,
by the International Maritime Organization (IMO) of the final remaining
parts of the International Code for
Ships Operating in Polar Waters, aka,
the Polar Code. The goal of this
IMO-led initiative is to promote safety
and reduce environmental pollution
from the growing number of vessels
operating in Arctic and Antarctic
waters. As a consequence, the code
now applies to offshore industry
assets, including offshore support
vessels carrying out resupply, safety
standby, or other functions. On page
40, James Bond and John Dolny of
ABS write that the adoption of the
Polar Code is a meaningful step forward for the industry toward sustainable
activities in these regions. (Photo courtesy ABS)
ITALY SUPPLEMENT
In situ data assist platform life extension studies .................................................... 69
Compressed natural gas carrier opens options for remote, marginal fields ........... 70
Harsh environment valves, solenoids ........................................................................ 71
Valve/instrumentation group diversifies into firefighting......................................... 72
AUV-borne leak detection system inspects Mediterranean pipelines...................... 72
ATV growing deepwater valve design capability ...................................................... 73
EQUIPMENT & ENGINEERING
Joint venture highlights well intervention technology ............................................. 74
Halliburton unveils next-generation acoustic evaluation service ............................ 74
Clariant chemical solution averts well shut-in ......................................................... 75
double closed loop ex-proof

proportional valve

ATEX, IECEx, EAC

MA Chinese Mining
PESO Indian certification
www.atos.com
4 Offshore November 2015 www.offshore-mag.com
D E P A R T M E N T S
Online .................................................... 6
Comment ............................................... 8
Data ..................................................... 10
Global E&P .......................................... 12
Offshore Europe .................................. 16
Gulf of Mexico ..................................... 18
Subsea Systems ................................. 20
Vessels, Rigs, & Surface Systems ...... 22

Drilling & Production .......................... 24
Geosciences ........................................ 26
Regulatory Perspectives..................... 28
Business Briefs ................................... 76
Advertisers Index............................... 83
Beyond the Horizon ............................ 84
PERFORMANCE DRILLING TOOLS
UNLOCK THE
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2015 Weatherford. All rights reserved.
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Drilling & Formation Evaluation
Well Construction
Completion & Stimulation
Production
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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 tools and resources

Offshore Learning Center
Offshore magazine has partnered with the University of Houston to research
segments of the offshore oil and gas industry and evaluate and organize the
best available online videos into special collections. The Offshore Learning
Center currently contains six major collections, with 281 videos totaling 27
hours and 38 minutes; 62 posters; and 19 featured articles.
http://www.offshore-mag.com/learning-center/learn-more.html
New upcoming webcast

Offshore Top 5 Projects - 2015
The editors of Offshore have made their choices for the winners of the Five
Star Award the top five offshore field development projects for 2015. The
winners will be announced in a webcast on Dec. 17, and in the December issue.
Learn how the industry is applying the latest technologies for production and development in deepwater and other challenging offshore environments; addressing key environmental and safety issues; and using lessons to make remote and
associated offshore fields economically viable and accessible to the market.
http://www.offshore-mag.com/webcasts/offshore/
2015/12/offshore-top-5-2015.html
New on demand webcasts

Exploring Shells FLNG technological
advances and opportunities
As the offshore industry looks to develop remote and stranded natural gas
fields, the use of floating liquefied natural (FLNG) vessels has become an
increasingly attractive option for production, processing, and storage. Shell has
been working on FLNG technology since the 1990s. By being the first company
to green-light an FLNG project - the Prelude project, currently under construction - Shell took the first step toward making its FLNG efforts a reality.
In this webcast Marjan van Loon, Vice President LNG & Integrated Gas in
Shell Projects & Technology, Shell Global Solutions, discusses how through
FLNG technology, Shell and others hope to unlock new offshore reserves that
otherwise would have been impossible to develop.
http://www.offshore-mag.com/webcasts/offshore/2015/11/
exploring-shells-flng-technological-advances-and-opportunities.html
Assessing Mexicos new offshore

oil and gas opportunities
When Mexicos historic energy reform legislation became law on Dec. 21,
2013, it opened the country to foreign investment in its oil and gas sector for
the first time in 75 years. In this webcast Mayer Brown lawyers Dallas Parker
and Gabriel Salinas discuss the bidding process in Mexico.
http://www.offshore-mag.com/webcasts/offshore/2015/09/assessingmexicos-new-offshore-oil-and-gas-exploration-opportunities.html
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COMMENT
STATEMENT OF OWNERSHIP, MANAGEMENT,

AND CIRCULATION
1. Publication title: Offshore. 2. Publication number: 403-760
3. Filing date: October 1, 2015. 4. Issue frequency: Monthly.
5. Number of issues published annually: 12. 6. Annual
subscription price: $123.00. 7. Complete mailing address
of known office of publication: PennWell Corporation 1421
South Sheridan Road, Tulsa, OK 74112, Tulsa County. 7a. Contact person: Traci Huntsman. 7b. Telephone: 918-831-9435.
8. Complete mailing address of headquarters or general
business office of publisher: PennWell Corporation, 1455 West
Loop South Suite 400, Houston, TX 77027. 9. Full names and
complete mailing addresses of Publisher, Editor and Managing Editor: Publisher: Mark Peters, 1455 West Loop South
Suite 400, Houston, TX 77027. Editor: David Paganie,1455 West
Loop South Suite 400, Houston, TX 77027. Managing Editor:
Bruce Beaubouef, 1455 West Loop South Suite 400, Houston, TX
77027. 10. Owner: PennWell Corporation, 1421 South Sheridan
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are legitimate requests or paid copies.
17. Publication of Statement of Ownership: Will be printed

in the November 2015 issue of this publication.
18. Signature and title of Editor, Publisher, Business
Manager, or Owner: Traci Huntsman, Manager Corporate Assets
and Postal Compliance. Date: 10/01/2015.
David Paganie Houston
Extending floating production

into ultra-deepwater
Operators are increasingly acquiring leases with water depths that are challenging
the industrys technological limitations. In the US Gulf of Mexico, there are 88 active
leases in water depths of 3,000 m (9,800 ft) or greater, and more acreage in this range
will be up for bid next year in the GoM. For floating production systems, Shells Stones
FPSO will set a new benchmark when it comes online in the GoM in about 2,900 m
(9,500 ft) of water. Semisubmersible and spar-type production platforms are common
in deepwater as well, but these designs are currently limited to about 2,500 m (8,200 ft)
of water. The deepest water depth for a TLP is about 1,400 m (4,600 ft), and the conventional tendon design is a limiting factor.
The water depth progression for floating production facilities has somewhat plateaued
since around 2007, signaling the need for a step-change in the technology. Pending the
industrys appetite for drilling ultra-deep wells in this market, is it possible to extend
floating production facilities into water depths beyond 3,000 m?
New studies
Recently, Granherne conducted a study on the impact of extending wet-tree semisubmersible and truss spar production platform designs to 4,500-m (14,800-ft) water
depths. The results are summarized inside this issue by Richard DSouza and Rahul
Subramanian of Granherne and Rajiv Aggarwal. The study involved using DNV GLs
Sesam DeepC suite of software to conduct fully coupled nonlinear time domain global
performance analyses for both semisubmersible and truss spar designs, for 2,500-m and
4,500-m water depths. The authors suggest that the main challenges relate to the technical feasibility and installation of risers and mooring systems and their impact on the size
and global performance of the hulls. The full analysis begins on page 60.
Meanwhile, a paper delivered last month at PennWells Deep Offshore Technology
International Conference & Exhibition presented the results of a concept screening
for a new floating platform for ultra-deepwater GoM subsalt Paleogene reservoirs.
The paper, Low Cost Flexible Production Systems for Remote Ultra-Deepwater Gulf
of Mexico Development, was presented by Jelena Vidic-Perunovic with Doris Inc. It
summarized a RPSEA-funded study of an alternative to the existing ship-shaped hull
solution, aka FPSO.
The key design parameters for the hypothetical field host platform include capacity
for 1 MMbbl of storage and 60,000 b/d of production for 20 years in 2,000-3,000 m of
water. Each well is equipped with wet trees, and processed oil is directly offloaded via
shuttle tankers. Following concept screening and model testing, a round hull FPSO
was selected with a more cost-efficient steel catenary riser configuration. The author
suggests that the concept would not be prohibited by any of the major classification
societies. But, as it would be novel for the GoM, it is likely that the US authorities would
require additional reviews and approvals.
Another paper delivered at DOT, The Low Motion FPSO (LM-FPSO); A Novel SCR and
TTR Friendly Floater, presented an additional alternative to the traditional ship-shaped
FPSO. The concept is configured with a conventional box-shaped hull, free-hanging solid
ballast tank, conventional mooring, and steel catenary risers. The author, Alaa M. Mansour with INTECSEA, suggests that the LM-FPSO concept maintains the advantages of
the conventional FPSO, while offering superior motions and stability performance. A
case study was presented with the LM-FPSO supporting a dry-tree application in 500-m
(1,600-ft) water depth in the South China Sea. Included in the study was a cost comparison
with a conventional turret-moored FPSO with a wellhead dry-tree TLP. The author estimates a potential costs savings with the LM-FPSO to be $750 million.
I certify that all information furnished on this form is true

and complete. I understand that anyone who furnishes false
or misleading information on this form or who omits material or information requested on the form may be subject to
criminal sanctions (including fines and imprisonment) and/
or civil sanctions (including civil penalties).
To respond to articles in Offshore, or to offer articles for publication,

contact the editor by email (davidp@pennwell.com).

The Subsea Production Alliance is designing integrated in-well and seabed production solutions
!" ! ! !
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Subsea
Production
Alliance
G L O B A L D ATA
Worldwide day rates
Worldwide offshore rig count & utilization rate
Year/Month
Minimum
Average
Maximum
Drillship
2014 Oct
2014 Nov
2014 Dec
2015 Jan
2015 Feb
2015 Mar
2015 Apr
2015 May
2015 June
2015 July
2015 Aug
2015 Sept
$151,000
$151,000
$151,000
$151,000
$151,000
$151,000
$97,000
$97,000
$97,000
$97,000
$97,000
$97,000
$500,832
$507,507
$506,543
$502,238
$508,227
$506,850
$503,346
$503,862
$509,911
$506,010
$495,149
$500,993
$735,000
$735,000
$735,000
$735,000
$735,000
$735,000
$735,000
$708,000
$670,000
$670,000
$670,000
$670,000
Jackup
2014 Oct
2014 Nov
2014 Dec
2015 Jan
2015 Feb
2015 Mar
2015 Apr
2015 May
2015 June
2015 July
2015 Aug
2015 Sept
$43,300
$43,300
$43,300
$51,405
$51,405
$51,405
$38,000
$51,405
$51,405
$53,000
$35,000
$50,000
$142,693
$143,254
$144,325
$142,847
$143,500
$144,124
$142,545
$142,694
$142,473
$138,881
$138,425
$137,995
$389,000
$389,000
$389,000
$389,000
$389,000
$389,000
$389,000
$389,000
$414,000
$414,000
$414,000
$414,000
Semi
2014 Oct
2014 Nov
2014 Dec
2015 Jan
2015 Feb
2015 Mar
2015 Apr
2015 May
2015 June
2015 July
2015 Aug
2015 Sept
$145,000
$145,000
$145,000
$145,000
$145,000
$145,000
$145,000
$115,000
$115,000
$115,000
$115,000
$75,000
$388,781
$391,246
$389,365
$396,488
$397,199
$403,343
$401,628
$401,530
$403,143
$400,491
$401,044
$399,725
$641,000
$641,000
$641,000
$641,000
$641,000
$641,000
$641,000
$605,000
$605,000
$624,000
$624,000
$624,000
October 2013 September 2015

Contracted fleet utilization
Working
100
No. of rigs
Source: IHS RigBase
900
90
800
80
700
70
600
60
500
O
13
ct
Fleet utilization rate %
Total contracted
1,000
50
n
Ja
14
14
ril
Ap
ly
Ju
14
ct
14
O
n
Ja
15
ril
15
Ap
ly
Ju
15
Offshore fields entering production

in the Caspian Sea (%) by country 2011-2020
37.5%
25%
Azerbaijan
20%
20%
Russia (Caspian Sea)

Turkmenistan
Kasakhstan
2011-2015
20%
Source: Rigzone.com
This month Infield Systems takes a brief look at the

offshore market in the Caspian Sea up to 2020. The
average water depth for all offshore projects expected
to be developed in the Caspian Sea between 2016 and
2020 is around 120 m (394 ft), the deepest being 550
m (1,804 ft). Infield Systems anticipates Azerbaijan to
see the largest share of offshore capex going forward. A
major project in Azerbaijan which is expected to require
significant investment over the period of analysis is the
second phase of BPs Shah Deniz gas field, which is one
of the worlds largest natural gas developments. The
project involves the construction of two bridge-linked
offshore platforms, around 500 km (311 mi) of subsea
pipelines, 26 subsea production wells, and an upgrade
of the Sangachal terminal. Another field development in
Azerbaijan that could see investment over the forecast
period is Totals Absheron gas field. Discovered in 2011
and located in water depths of around 500 m (1,640 ft),
Total supply
40%
2016-2020
37.5%
Source: Infield Systems Market Modeling & Forecasting Database
the field is estimated to contain between 5 and 10 tcf of natural gas. If developed it could be connected to
the South Caucasus Pipeline system, which transports natural gas from Azerbaijan to Turkey via Georgia.
Outside of Azerbaijan, the giant Kashagan oil field operated by the North Caspian Operating Co. could
require additional investment going forward to help increase production. Kashagan came onstream in
2013. However, production was halted due to pipeline corrosion caused by sour gas. Replacement lines
with internal cladding will be installed to militate against pipeline corrosion, with installation expected in
2016. Turkmenistan and Russia are also anticipated to see offshore developments in their sectors of the
Caspian Sea. For instance, Lukoils Vladimir Filanovsky oil field is one of the largest offshore oil fields in
Russia and could enter production in 2016.
George Griffiths, Senior Energy Researcher, Infield Systems
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North America
Shell is withdrawing from exploration offshore Alaska following

its recent experience drilling the Burger J prospect in the Chukchi
Sea. The well, drilled 150 mi (241 km) from Barrow in 150 ft (45.7
m) of water, found only indications of oil and gas that did not warrant
further appraisal. Shell also cited the projects high costs and its difficulties dealing with the federal regulatory environment off Alaska.
Husky Oil has canceled a five-year contract for the newbuild semisubmersible West Mira to operate offshore Canada and Greenland following continued construction delays at the Hyundai yard in South Korea. Contractor Seadrill was discussing alternative options with Husky.
Repsol has sold interest in three blocks offshore Newfoundland

operated by Statoil to BG Group. All are around 200 km (124 mi)
from St Johns. Drilling of a first well was due to start this fall.
South America/Caribbean Sea
Jeremy Beckman London
oil, but had to be terminated due to mechanical issues. This is in

place of a planned well on the Jayne East structure.
Later, the rig should drill a first well on license PL001 in the same
basin on the potential 443-MMbbl Rhea prospect. Noble Energy and
Edison International recently completed a farm-in to 100% of the license from previous operator, Stanley-based Argos Resources.
West Africa
Australian independent FAR has an option to farm into 75% of

the Djiffere block offshore Senegal currently held by a subsidiary
of Trace Atlantic Oil. The concession adjoins three deeper-water
blocks, in which FAR is also a partner, containing last years FAN-1
and SNE-1 oil discoveries. FAR has identified prospects in Djifferes
western section that could hold 765 MMbbl of resources, along with
other shelf structures. Terms for the block call for a first well to be
drilled prior to end-July 2018.
BHP Billiton has commissioned EMAS AMC to engineer, fabricate,

and install subsea facilities for the Angostura Phase 3 development, 35
km (21 mi) northeast of Trinidad and Tobago. The scope covers a 12in. flowline, control umbilicals, and pipeline end manifold. The Lewek
Express vessel will perform installations next summer.
The recently named FPSO for the TEN project. (Photo courtesy Tullow Oil)
Location of the latest discovery in the Carcar area. (Map courtesy Petrobras)
Petrobras has proven light oil with its third well in the Carcar area
(block BM-S-8) in the presalt Santos basin off Brazil. The well was drilled
in 2,024 m (6,640 ft) of water, 226 km (140 mi) offshore So Paulo state.
It intersected a 318-m (1,043-ft) column of light oil in good-quality carbonate reservoirs, just below the presalt layer. Pressure data confirmed it is a
western extension of the two previous discovery wells in the area.
Like many other major oil companies, Petrobras declined to participate in Brazils 13th Exploratory Block Bidding Round last month,
organized by the ANP. The company said it already had substantial
acreage in the sedimentary basins on offer.
The various partnerships in the current exploration campaign offshore the Falklands have agreed to alter the schedule for the semisubmersible Eirik Raude. After completing an unexpectedly protracted operation on the Humpback prospect south of the islands,
the rig was due to drill another well on the Isobel/Elaine complex in
the North Falkland basin. A well here earlier this year encountered
The MODEC-supplied FPSO for Tullow Oils deepwater TEN project offshore Ghana has been named at the yard in Singapore, after Ghanas former president Prof. John Evans Atta Mills. The 340-m (1,115-ft)
long, 56-m (184-ft) wide vessel is designed to produce 80,000 b/d of oil
and process 170 MMcf/d of gas. Tullow expects start-up in mid-2016.
Erin Energy subsidiary Camac Energy has completed a resource
assessment for Ghanas offshore Shallow Water Tano block. Fourteen wells have been drilled to date on various fields on the acreage,
with total reserves estimated at 500 MMbbl of oil and 282 bcf of gas.
Erin and its partners are working to determine commerciality.
Two of Nigerias main deepwater players have started production

from incremental projects. Shells Bonga Phase 3 is an extension of the
Bonga Main development that came onstream in 2005 in more than
1,000 m (3,281 ft) of water, and which has delivered more than 600
MMbbl so far. Phase 3, which involved drilling new wells connected via
flowlines to the Bonga FPSO, will supply around 50,000 boe/d at peak.
Erha North Phase 2, operated by ExxonMobil, is 60 mi (96 km) offshore in 3,300 ft (1,006 m) water depth, and 4 mi (6.4 km) north of the
Erha field. Development called for drilling of seven wells with three drilling centers tied back to the Erha FPSO. At peak, the new facilities will
add 65,000 b/d of oil, lifting overall production to around 90,000 b/d.
Cameroons government has approved a floating liquefied natural

gas (FLNG) project that will harness gas from the offshore Kribi fields.
This involves use of Golar LNGs GoFLNG vessel, currently undergoing conversion at Keppel Shipyard in Singapore. Under the agreement,
500 bcf from the fields will be converted to around 1.2 MMt/yr of LNG
GLOBAL E&P
for export to global markets. Other partners in the development are

Perenco and state oil company Societ Nationale des Hydrocarbures.
UK independent Tower Resources has signed a production-sharing contract for the shallow-water Thali (ex-Dissoni) concession in
the Rio del Rey basin offshore Cameroon. Tower believes up to four
distinct play systems could be present, including one that has so far
delivered one oil and two gas discoveries on the block. Following a
3D seismic survey next year, drilling could begin in 2017-18.
Black Sea
Bulgaria has reportedly agreed to award Shell a five-year exploration permit for the 7,000-sq km (2,703-sq mi) offshore Silistar block,
close to the median line with Romania. The initial work program is
thought to include seismic surveys.
Petroceltic, which produces gas from various shallow-water fields
in the Bulgarian sector, plans a single subsea well tieback of the 9.6bcf Kavarna East discovery to a manifold near the Kavarna field, in
turn connected to the Galata production platform.
Middle East
Egyptian state gas company EGAS has awarded four new oil and gas
explorations licenses in the Mediterranean Sea, according to a Reuters
report. One is to BP, another to Edison, with two more split between BP
and Eni, and BP/Eni and Total. Egypt is said to be planning a further
bidding round in the Mediterranean during the first half of 2016.
Saudi Aramco and Bahrains state oil company BAPCO have contracted NPCC for construction services for Offshore Package II of
the Saudi Arabia to Bahrain A/B Pipeline project. NPCC will supply
and install around 42 km (26 mi) of offshore pipeline and submarine

fiber-optic cable for the section running from Isolating Flange, Qurrayah to Isolating Flange, Al-Jazair.
McDermott International has started work on construction of four

wellhead jackets for a brownfield development of Qatar Petroleums BulHanine field offshore Doha. Two of the structures are due to be delivered
and installed by December 2016, the other two following in July 2017.
Combined weight of the jackets will be 3,495 tons (3,170 metric tons).
Petro Iran Development Co. has completed an initial drilling campaign through the oil layers of the South Pars gas field in the Persian
Gulf, according to news service Shana. Operator PEDCO Iran has
commissioned a drilling platform and FPSO to produce the oil under
a first-phase development, designed to deliver 35,000 b/d.
East Africa
Spectrum has a cooperation agreement with the federal government of Somalia to acquire roughly 28,000 km (17,398 mi) of
long-offset 2D seismic offshore the south of the country. This will
complement 20,000 km (12,427 mi) of existing seismic shot in 2014.
Results from the two surveys will be used to analyze the offshore
prospectivity of this region, which may be on trend with recent large
discoveries on the East African margin.
Kenyas government has extended the initial exploration period

for offshore blocks L27 and L28 to February 2017. This will give
operator Erin Energy more time to acquire and process 3D seismic
over both blocks.
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GLOBAL E&P
Douglas-Westwoods World Drilling & Production Market Forecast

has identified over 83 wells drilled offshore Mozambique and Tanzania
since Anadarkos Windjammer-1 discovery in the offshore Rovuma basin in 2009. Activity since has lifted the two countries combined proven
reserves to 29.5 Bboe. The analyst expects first gas from Anadarkos
planned subsea-beach development of Golfinho-Atum and Prosperidade offshore Mozambique in 2019, with Enis FLNG solution for its
ultra-deepwater Coral and Mamba fields set to operate by 2021.
Asia/Pacific
Murphy Sabah Oil has contracted Aker Solutions to provide the subsea
production system for the deepwater Rotan gas field in block B offshore
East Malaysia. Scope includes four subsea wells, a hub manifold, in-line
tees, and a production control system. First deliveries are due next spring.
OceanMight has a letter of award from Talisman Malaysia to construct a wellhead platform for the Kinabalu redevelopment offshore
Sabah, pending approvals and completion of detailed design. Work is
due to be completed in 2Q 2017. Offshore Sarawak, Petronas has commissioned Technip to supply and install two 8-in. water injection flexible pipes, connecting to three fixed platforms serving the D18 project
offshore Sarawak. All work should be finished by the end of this year.
Shell has started production from the new Depletion Compression

Platform serving the Malampaya field offshore the Philippines. The
facility is adjacent to the existing shallow water platform, 50 km (31
mi) offshore Palawan. The self-installed facility, which was towed from
Subic to the Malampaya location, is designed to maintain production of
gas needed to fulfil sales commitments.
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Hague and London Oil has a conditional agreement to take an operating interest in the Duyung production-sharing contract in the Natuna
Sea, offshore Indonesia, from Singapore-based West Natuna Exploration.
The concession includes the undeveloped 902-bcf Mako gas discovery.
Australasia
The newly
launched
Ichthys central
processing
facility. (Photo
courtesy INPEX)
The central processing facility for INPEXs LNG project offshore

northwest Australia was launched in September from the offshore
floating dock at the Samsung shipyard in Geoje, South Korea. Following installation of the living quarters and integration and commissioning of all equipment, it will be towed 5,600 km (3,479 mi) to
the Ichthys field in the Browse basin. INPEX has delayed the projects start-up date to 3Q 2017.
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OFFSHORE EUROPE
Subsea compressors begin

boosting operations
Jeremy Beckman London
involves re-use of existing wells on Gullfaks.

NPD has submitted its assessment of the proposals to Norways government.
Operations have started at the worlds first

two subsea gas compression stations, serving
the sgard and Gullfaks field complexes offBig turnout
shore Norway. The aims in both cases are to
for Irish frontier round
maintain production to counter declining resIrelands Energy Ministry received 43
ervoir pressure. According to operator Statoil,
applications for the countrys 2015 Atlantic
placing the equipment subsea is more efficient
Margin Licensing Round, the largest for any
than the alternative of a topsides compresIrish offshore bid process to date. Applicants
sion module adding extra weight to an already
ranged from small independents to majors.
space-constrained platform. In Gullfaks case,
Acreage on offer was spread across all Ireanalysis suggested the subsea solution would
lands main Atlantic basins Donegal, Erris,
also be more productive in terms of improved
Goban Spur, Porcupine, and Slyne.
recovery than the platform option.
The government expects to issue awards
Installation of the Gullfaks subsea wet gas
The first compression plant entered ser- compressor station. (Photo courtesy Statoil)
over the coming months, in the form of a twovice in mid-September in 300 m (984 ft) of wayear licensing option. This gives the holder
ter at sgard in the Norwegian Sea. Two identical gas compressors the right to define the exploration potential and promote the acreage
with associated pumps, scrubbers, and coolers are installed on the before applying for a 15-year frontier exploration license.
seafloor, close to the subsea wellheads for the Midgard and MikDublin-based Providence Resources, the countrys most active likel gas reservoirs. Prior to gas compression, the produced gas and censee over the past 15 years, has signed a collaboration agreement
liquids are separated; following pressure boosting, they are recom- with Schlumberger for the Goban Spur and southern Porcupine babined and sent through a pipeline 40 km (25 mi) to the sgard B sins. The duos main goal is to de-risk Providences Drombeg, Druplatform. Statoil expects the equipment to boost recovery at Mid- id, Dunquin South, and Newgrange exploration prospects. The comgard from the currently estimated 67% to 87%, and at Mikkel from pany hopes the combination of its proprietary 2D and 3D seismic
59% to 84%. Aker Solutions, which supplied both systems, also manu- database, and gaining access to Schlumbergers multi-disciplinary
factured a spare compression train which is stored at the Vestbase technologies, will help it attract a deepwater operator.
onshore supply center in Kristiansun.
For the Gullfaks field in the North Sea, OneSubsea engineered
and manufactured a subsea wet gas compressor station. This comLaying of the umbilical connectprises a 420-metric ton (463-ton) protective structure housing two
ing the Ravn field to the A6A
5-MW compressors weighing 650 metric tons (716 tons) in total,
platform in the German North
located downstream of the L and M subsea templates serving GullSea. (Photo courtesy VBMS)
faks South, with associated equipment on the Gullfaks C platform
for power supply and control of the subsea system. In this case, the
plant is designed to recover an additional 22 MMboe. Statoil points
out that a wet gas compressor does not require gas and liquid separation ahead of compression, allowing use of smaller modules and a
simpler structure overall on the seafloor. Instead, the wellstream is
homogenized by passing it through a mixer before it is compressed.
The company is looking to increase recovery from the Gullfaks
South Brent reservoir from 62% to 74% through this solution, allied
to the introduction of low-pressure production. The station has been
fitted with tie-in points that could accommodate other subsea wells
in future via existing pipelines. Assuming it is successful, the company could replicate the technique on other small- to mid-size fields.
Statoil plans UK-Sleipner tieback

Statoil is considering its first trans-median line development in the
North Sea involving a field in UK waters. The company has acquired
First Oils 24% stake in license P312, containing the 60-MMboe Alfa
Sentral gas/condensate discovery which extends into PL046 on the
Norwegian side. Concept selection for a tieback to the Statoil-operated Sleipner complex was completed in September. Assuming agreement on unitization of the field between the two sets of partners, an
investment decision should follow in late 2016 that could lead to first
production in 2020.
In the northern part of the Norwegian North Sea, the company
is looking to develop 20 MMbbl from the Shetland/Lista formation
above the main producing reservoir for the Gullfaks field. According
to the Norwegian Petroleum Directorate, the zones directly above the
reservoir are under natural high pressure, complicating drilling on
the field. Moving to production from Shetland/Lista could make drilling easier in the future. The NOK 1.8-billion ($217-million) program
Umbilical links Danish, German platforms

The Boskalis/Volker joint venture VBMS has installed an 18.5km (11.5-mi) control umbilical connecting Wintershalls new Ravn
platform in the Danish North Sea across the median line to the companys A6A platform in the German sector. VBMS configured the
Ndurance with its Trenchformer burial system, allowing the vessel
to perform the full installation, including direct pull-ins and the simultaneous laying and burying of the umbilical.
Amoco originally discovered the 14.4-MMbbl Ravn oil field in
1986, with new operator Wintershall undertaking successful appraisal and testing in 2009. According to analyst ScanBoss, Dutch
yard NAMI built the platform which comprises a 660-ton topsides
supported by a 1,200-ton four-leg jacket. Seaway Heavy Liftings Oleg
Strashnov installed the platform earlier this year, while JDR supplied
the steel tube power/control umbilical. Production may start before
year-end.
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GULF OF MEXICO
New floating rig well permits issued in the U.S. Gulf of Mexico by type
Drilling permits down,

but rig count up slightly
A total of 13 new permits were issued in
the US Gulf of Mexico in September, down
from 21 in August and down from 19 a year
ago, according to the Evercore ISI Drilling
Permit Monthly report issued on Oct. 13.
According to the report, five permits were
issued for new wells, including three deepwater and two midwater. In addition, five permits were issued for sidetracks and three for
bypasses.
A total of 154 new well permits have been
issued year to date, down 37% versus 2014,
driven by sharply fewer bypass and new well
permits. Only 58 new well permits have been
issued year-to-date compared to 100 as of this
time last year.
While the number of ultra-deepwater and
midwater new well permits are largely unchanged from a year ago, only 18 deepwater
and 12 shallow water new well permits have
been issued year to date, down 14% and 76%
respectively from a year ago.
Meanwhile, there was a downtick in the
number of new exploration plans filed in the
Gulf last month, with operators filing just
five plans to drill a total of 13 wells versus 10
plans to drill 27 wells in August.
Though one development plan was filed
to drill one well (up from none in August),
development of the Lower Tertiary appears
to remain a long ways off and the industry has filed only 13 development plans
totaling 30 wells year-to-date, the report
notes.
With pricing having contracted sharply, Evercore ISI says it expects development activity to accelerate slightly in the
Subsea 7 says it has been saving time using

Sonardynes acoustic and inertial navigation
technologies for the installation of subsea
structures at a new deepwater oil field in the
GoM. (Courtesy Sonardyne)
coming months and years, and it believes

that the GoM will be the only relative bright
spot for deepwater activity in 2016-2017.
Meanwhile, the rig counts in the GoM were
showing modest signs of increased activity in
mid-October, although the level is still down
significantly from last year. On Oct. 12, the
Baker Hughes Inc. weekly report said that
the US offshore rig count was up by two rigs
over the previous week, reaching 32. That figure was still down by 26 year over year. That
rig count rose again by one to 33 when Baker
Hughes issued its Oct. 19 report. But that
number was still down by 24 rigs year over
year.
Subsea 7 employs
Sonardyne tech
Subsea 7 has successfully used acoustic
and inertial navigation technologies from Sonardyne International Ltd. during a project to
install flowlines, risers, and subsea structures
at a major new deepwater field development
in the GoM. According to Sonardyne, this unnamed project is expected to commence production in 2016.
To meet the complex positioning requirements of the project, Subsea 7 worked with
Sonardynes in-house Survey Support Group
(SSG) to determine the optimum configuration
of subsea, ROV and vessel-based equipment.
For a low-risk, multi-functional and cost-effec-
tive solution, a combined acoustic and aidedinertial navigation approach was adopted comprised of Fusion 6G LBL (Long BaseLine) and
SPRINT inertial navigation technologies.
For the installation of the flowlines and
structures, an array of Sonardyne Compatt 6
transponders was deployed. The SSG assisted Subsea 7 in designing the array, optimizing array geometry and modeling acoustic
ray bending paths. This helped ensure that
the design produced an array that met the
stringent positioning tolerances required and
offered sufficient redundancy in acoustic observations.
The work identified that the quantity of
transponders needed for the project could
be reduced through the use of Sonardynes
inertial navigation sensor, SPRINT, installed
on the survey teams ROV which was being
used for touchdown monitoring. The sensor makes use of acoustic aiding data from
acoustic USBL and LBL positioning systems
and other sensors such as Doppler Velocity
Log (DVL) and pressure sensors to improve
position accuracy, precision reliability, and integrity for subsea vehicles.
Hess orders Stampede

tubulars, line pipe
Hess Corp. has ordered 14,000 tons of tubular goods and line pipe from Vallourec for use
on the Stampede project in the Gulf of Mexico.
The contract calls for Vallourec to supply more than 5,000 tons of oil country tubular goods including high-performance
premium grades and 9,000 tons of seamless steel line pipe for flow liens and steel
catenary risers.
Vallourec said that most of the pipes will
be threaded at VAM USA with more than
12,000 connections.
Stampede is a deepwater GoM project
and the pipe is destined for installation in
3,500 ft (1,000 m) water depth. The project is 115 mi (185 km) south of Fourchon,
Louisiana.
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SUBSEA SYSTEMS
Sarah Parker Musarra Houston
Gullfaks first subsea wet

gas compressor starts up
2H Offshore to perform
Chevron riser testing
Statoil and partners Petoro and OMV have

brought onstream the worlds first subsea wet
gas compression system on the seafloor of the
Gullfaks field in the North Sea. The technology, designed and supplied by OneSubsea, is expected to increase recovery by 22 MMboe and
extend plateau production from the Gullfaks
South Brent reservoir by around two years.
Last month Statoil started up the worlds first
subsea gas compression system at its sgard
complex in the Norwegian Sea. Both technologies serve to maintain production when reservoir pressure drops after a certain time.
Chevron has contracted 2H Offshore to

manage a production riser weld qualification
testing program.
The aim of the development of 20,000
psi technology is to qualify the equipment
required to develop future offshore fields
with design pressures above 15,000 psi and
temperatures above 250F (121C). These
design pressure and temperature requirements result in line pipe wall thickness requirements as much as 1.9-in. for 8- to 10-in.
diameter risers. This is beyond what the industry has already qualified and installed to
date for fatigue sensitive deepwater risers.
The scope of the program will incorporate
test pipe specifications, procurement, and
qualification of new welding and AUT procedures and comprehensive fatigue testing that
will include the effects of sour service conditions. In addition, the project scope includes
the development of feasible marine riser system configurations for a number of different
host vessels.
EMAS completes
tiebacks for Noble
Shown here is one of the subsea wet gas compressor units at OneSubseas facility inHorsy,
Norway. (Image courtesy OneSubsea)
According to Statoil, subsea compression

has a stronger impact than conventional platform-based compression, and avoids the extra
weight and space that would be taken up by
fitting a compression module on the platform.
Also, a wet gas compressor does not require
gas and liquid separation before compression,
allowing use of smaller modules and a simpler
structure on the seabed.
The system comprises a 420-metric ton
(463-ton) protective structure, a compressor
station with two 5-MW compressors with a total weight of 650 metric tons (716 tons), and
all equipment needed for power supply and
system control on the Gullfaks C platform.
The recovery rate from the Gullfaks South
Brent reservoir may be increased from 62% to
74% by applying this solution in combination
with other measures, said Kjetil Hove, senior
vice president with Statoil.
The Norwegian company may also look
to tie in other subsea wells to the wet gas
compressor via existing pipelines the station has been prepared for this eventuality.
EMAS AMC has completed the first two

of three Noble Energy-operated subsea
tieback projects in the US Gulf of Mexico.
The scope of work included project management, fabrication, and installation of 8-in.
steel catenary risers and 40 mi (64 km) of
8-in. and 12-in. pipe-in-pipe for the Big Bend
and Dantzler field development projects in
7,000 ft (2,100 m) of water depth. It also included the design, fabrication, and installation of eight subsea structures weighing up
to 100 metric tons (110 tons) each.
Lewek Constellation and Lewek Connector
are now mobilized to lay the pipeline and
umbilicals on the Noble Energy-operated
Gunflint development project.
Since May, Lewek Constellation, pictured here

at work for Noble Energy, has conducted more
than 30 heavy lifts between 900 and 2,200 metric
tons (992 and 2,425 tons) transferring rigid pipe
reels for the Big Bend and Dantzler projects.
(Image courtesy EMAS AMC)
EMAS AMC is the subsea division of Ezra

Holdings Ltd., which inked an MoU with
Chiyoda Corp. in August to form a joint venture: EMAS CHIYODA Subsea, which will
focus on subsea services.
In early October, the two companies announced that they will be moving forward
with their joint venture plans. The proposal is
subject to approval of current shareholders.
Subsea contract briefs

Murphy Sabah Oil has contracted Aker
Solutions to supply the subsea production
system for the deepwater Rotan gas field
development offshore Malaysia. The scope
includes equipment for four subsea wells, a
hub manifold, in-line tees, a connection system, and a production control system. First
deliveries are scheduled for 2Q 2016.
Pulse Structural Monitoring has won a
contract with National Oilwell Varco Arendal in Norway to provide an acoustic mooring line subsea monitoring system to measure mooring line inclination and tension.
The contract is for 12 mooring line subsea
monitoring sensors and ancillary topsides
equipment, which have been enhanced to
meet specific client requirements.
Statoil has awarded contracts for two
more platform jackets for the Johan Sverdrup complex in the central Norwegian
North Sea to Kvaerner Verdal and Dragados Offshore. All four first-phase platforms
will be bridge-linked, and connected to three
subsea water injection templates.
Saipem has tallied more than 600 million
($680.87 million) in offshore engineering
and construction contracts. Saudi Aramco
has awarded Saipem an engineering, procurement, construction, installation (EPIC)
project for offshore structures including an
observation platform, wellhead production
deck module, auxiliary platforms, 20-in. internally cladded flowline, and composite
power cable, all for offshore Saudi Arabia.
Saipem also has an EPIC contract from Eni
for the offshore Angola East Hub development in block 15/06. The project includes
five flexible risers and 20 km (12 mi) of rigid
flowlines, as well as installing SURF facilities which include umbilical sections, rigid
spools, well jumpers, and 14 PLETs to be
fabricated in Angola. The project is scheduled to be completed by the end of 2016.
Ocean Installer has received a regional
framework agreement with BP for subsea
work in the Gulf of Mexico. The agreement
covers subsea fabrication, transportation, and
installation of offshore facilities, as well as
hook up and commissioning, and is valid for
three years. Ocean Installer recently collected
a contract from Total for deepwater installations at the Moho Nord field offshore Republic
of Congo, its first major job off West Africa.
VESSELS, RIGS, & SURFACE SYSTEMS
Robin Dupre Houston
Floating LNG industry set

for landmark project start-ups
The capex for FLNG vessels is expected to amount to $35.5 billion
over 2015-2021, reported Douglas Westwood (DW). Spending on FSRUs
will total $22.8 billion over the same period, taking the combined expenditure for the floating LNG market to $58.3 billion. There are huge interests
in the pioneering projects that will drive market spend over the coming
years, its analysis stated, with future commitments by operators to the
FLNG market hinging on the success of these pioneering projects.
The delivery of Petronas PFLNG 1, also known as the PFLNG SATU,
will be the worlds first FLNG vessel, with operations to start by the end of
2016. This will be followed by Shells Prelude FLNG vessel, a significantly
larger project. Construction of the 488 m (1,601 ft) long facility started
in 2012 (the unit is being built by Samsung in Korea) and is expected to
start up by 2017.
Following these is a second wave of new projects that are yet to be sanctioned but are expected to drive a growth in expenditure from 2019 onward. This includes major projects in frontier regions such as East Africa.
DW anticipates more floating regasification units are to be sanctioned,
with Asia and Latin America being the dominant regions. Upcoming
projects are visible in Indonesia, China, Pakistan, India, Vietnam, Bangladesh, and Sri Lanka, mostly led by national oil companies. Latin America
will see deployments of floating regas units in Chile and Puerto Rico.
New DNV GL ship classification

rules now available
DNV GLs new ship classification rules are available online for the
first time. The new rules come into effect on Jan. 1, 2016.
Through the process of developing the new DNV GL rules, the
group said more than 7,000 pages were reviewed, both internally and
externally. In all, more than 2,000 detailed comments by yards, manufacturers, owners, academics, flag states, and other maritime stakeholders were submitted. This consultation resulted in more than 700
rule adjustments triggered by industry expertise.
One of the most significant advances in the new rules is the introduction of equivalent design waves (EDW) to calculate environmental
loads. DNV GL said EDW enables a more accurate representation of
these loads and consequently a more precise stress description of a
vessels structure.
DNV GL said that the reworking of the rules has allowed it to incorporate and integrate more modern tools and software, making them
responsive to future developments. The rules also support the application of the latest technologies, including battery installations and
hybrid propulsion concepts, gas-fueled readiness, and LNG bunkering vessels through additional class notations.
Maersk Resilient to drill in Danish North Sea

Maersk Drilling has won a $110-million contract from Maersk Oil
for the jackup rig Maersk Resilient. The firm contract is for three years.
The rig will work at various fields in the Danish sector of the North
Sea. It has been stacked at Invergordon in Scotland, where the rig has
undergone various maintenance work.
The rig is equipped for high-pressure/high-temperature drilling, said
Maersk Drilling, and is designed for year-round operation in the North
Sea, in water depths up to 107 m (350 ft) with an available leg length
below hull of 148 m (485 ft). The rig can accommodate 120 people.
Fugro Scout completes

maiden project in the Middle East
The 83-m (272-ft) geotechnical Fugro Scout drilling vessel has deployed in the Arabian Sea and the Red Sea, completing several geotechnical and geophysical survey scopes for various clients. The vessel is currently in transit to the Netherlands to execute a geotechnical
survey for an offshore windfarm in the Dutch sector of the North Sea.
The 83-m geotechnical Fugro Scout drilling vessel is currently in transit to

the Netherlands. (Photo courtesy Fugro)
The new vessel is specifically designed to address the varied demands of both the shallow and deepwater survey markets. With a
twin tower drilling derrick over a centrally located moonpool, the
Fugro Scout supports automated pipe and tool handling equipment
to promote safe drill floor operations. A large soil laboratory provides an open plan working environment for geotechnical operators.
Other equipment includes both downhole and seabed sampling and
testing systems rated for 3,000 m (9,843 ft) water depth. The vessel is equipped with a dynamic positioning station holding capability
and is built to Comfort Class COMF-V(3) standards with quarters
for up to 60 operational staff.
ABS grants AIP for MES FPSO design

ABS has granted Mitsui Engineering & Shipbuilding Co. Ltd.
(MES) approval in principle (AIP) for a floating production, storage,
and offloading (FPSO) vessel design and an epoch-making construction concept.
This work is the result of an ABS/MES joint development
project that began in March 2015. The noah-flex modular design for the FPSO and the flexible construction procedure,
noah-flex modular construction, were granted AIP on Sept. 15.
ABS is working with the industry to develop and employ new
technologies, said ABS Chairman, President, and CEO Christopher J. Wiernicki. To effectively support Class of the Future,
ABS has to provide the services the industry needs to make adjustments as operating conditions and markets change. Granting
AIP to new technologies is an essential element of that future.
MES recognizes that ABS is our dependable partner and plays an
indispensable role in developing and realizing such an epoch-making concept as our noah-FPSO hull, said MES General Manager
Dr. Taketsune Matsumura.
The noah-flex modular construction processes consists of multiple
steps that take place in parallel to shorten the construction time efficiently, with keel laying marking the commencement of construction.
The first step of the project is FPSO design and hull construction,
including propulsion and relevant machinery equipment/systems,
which will be carried out by MES, Japan, while construction of the oil
storage component takes place at another yard, outside Japan for example. Following this process, the topsides facilities will be fabricated
and installed on the elongated hull, after which the completed FPSO
will move to the specified operation site for hookup and commissioning.
The FPSO design will be reviewed for compliance with the ABS rules
and applicable international/national regulations to make sure the
unit is in full compliance, particularly when executing transits from
one shipyard to another during construction.
Gas tight and tested

XL Systems now offers two connections for gas tight surface casing applications
XLW-GT and Viper. Both products have been physically tested in multiple sizes
to 95% of actual X80 pipe body internal pressure ratings in compliance with ISO/
FDIS 13679:2011 CAL I-E requirements.
The XLW-GT connection combines an internal metal seal with wedge thread
technology and does not require an anti-rotation feature.
The Viper connection features superior fatigue performance, an internal O-ring
seal, and a fast make-up design with ViperLock anti-rotation.
Learn more at nov.com/gastight
2015 National Oilwell Varco | All Rights Reserved
DRILLING & PRODUCTION
Industry update
Although the industry is exiting a volatile
quarter with the oil price seemingly finding
some stability around $45/bbl, the outlook for
the group and the offshore sector as a whole
remains bleak, said James West, senior managing director and partner, Evercore ISI.
Like the North American land rig count,
Evercore expects the global offshore rig
count to trend steadily lower as we head
into the capital budget season. Upstream
suggests Brazils rig count could fall by another nine to 10 units as the troubled NOC
continues to battle corruption charges, and
there are not any expectations on seasonal
improvements in the US Gulf of Mexico as
loop and eddy currents abate. Although operators submitted slightly more exploration
plans in the Gulf this year to date, 67 vs. 62
through September 2014, the mix is shifting
toward more midwater activity at the detriment of deepwater (5,000-7,500 ft). Despite
some 50% cuts in leading edge rig rates
and 20-30% deflation in spread costs, EVERCORE expects operators to idle rigs in the
near term to save on spread costs, putting 18
floaters and 59 jackups scheduled to roll off
contract globally in 4Q at risk of going idle.
With high-spec floaters (fifth-gen and up)
making up an usually high 67% of all floaters scheduled to roll off contract in 4Q 2015,
up from 58% last month, there is an expectation that higher spec rigs will continue to bid
down for work wherever they can find it.
West added: We also wouldnt be surprise if rig retirement re-accelerates shortly,
noting the approach of the one year anniversary to the first floater retirement announced on Oct. 23, 2014. Although firm
contracts are few and far in between,
leading edge ultra-deepwater day rates
appear to hover around $300,000/d while
deepwater day rates are at a new record
low of $140,000/d (albeit for P&A work).
The lone bright spot offshore remains in
offshore development, where operators
appear to be taking advantage of deflation in the industry to accelerated capital equipment orders in the past month.
We believe formal FID for Statoils Johan
Sverdrup and Maersks Culzean development could be imminent, as well as
FTIs Forsys Subsea first FEED award.
We were particularly excited OneSubseas SPS FEED award from Woodsides
Greater Enfield project includes multiphase boosting, signaling growing acceptance in subsea processing technology.
Bulgaria has selected Shell for

exploration activities in the Silistar
block, off the coast in the Black Sea.
(Photo courtesy Republic of Bulgaria)
Robin Dupre Houston
Weather forces change

to offshore Gabon
drilling sequence
reduce its dependence on Russia for natural

gas supplies.
VAALCO Energy and its partners have resequenced a drilling and workover program
in the Etame Marin block offshore Gabon.
Following positive results last month from the
initial North Tchibala field development well,
VAALCO had planned to mobilize the jackup
Transocean Constellation II to the Avouma/
South Tchibala field for workover operations to
replace electrical submersible pumps on three
existing development wells, two of which have
been off production.
However, adverse sea state conditions at
the location of the SEENT platform prevented the relocation of the rig. Rather than wait
for an improvement and incur the expense
of idle/standby rig time, the partners have
opted instead to drill and complete the North
Tchibala 2-H well, in order to produce oil
from the deeper Dentale D18-19 formation.
Drilling operations are proceeding and the
well is expected to reach a depth of around
16,000 ft (4,877 m). Thereafter, the rig will
be mobilized to the Avouma/South Tchibala
platform for the workover campaign.
eDrilling and Acona

partner to improve
drilling performances
Shell gets deepwater

Bulgaria exploration permit
Bulgaria has selected Royal Dutch Shell
to conduct deepwater Black Sea exploration.
Bulgaria had offered two blocks for tenders
earlier this year, and Shell was the only bidder on the Silistar permit, says a Reuters report. Shells five-year permit over the 7,000
sq km (2,703 sq mi) area calls for spending
$21 million on seismic surveying.
Reuters says Bulgaria is moving to help
eDrilling and Acona announced a partnership that will assist E&P companies, drilling
contractors, and services companies worldwide in saving cost, improving safety, and
increasing efficiency of drilling operations.
As part of this partnership, the two companies will provide all-encompassing drilling
and well performance solutions, well management, and well engineering services covering
the complete lifecycle of oil and gas wells.
With our dynamic models, eDrilling is
assisting the energy industry in achieving
safer and more efficient drilling operations.
Serving the drilling and well performance
needs of these companies combined with
Aconas specialist well engineering and well
management expertise provides a key benefit for oil and gas operations across Europe
and the North Sea, states Tor Olav Schibevaag, CEO of eDrilling.
With eDrillings software as part of our
offerings, our objective is to support our clients even better in planning and executing
wells, states Fredrik Hvistendahl, CEO of
Acona.This partnership provides an opportunity to assist onshore and offshore energy
companies in meeting their drilling and well
challenges and objectives.
Collaboration aims
to develop well
control training
Lloyds Register Energys Training Academy and The Well Academy are collaborating to develop a new enhanced training program for well control certification.
Jeroen Bergevoet, Academy training manager and technical knowledge
manager for Lloyds Register Energy,
said: Training your staff is vital for safe,
competitive, and sustainable drilling operations. Our delegates will be trained
to use the very latest technologies, and
also will be given complete insight in to
the criticality of human factors in well operations, which can be overlooked when
operators are under pressure and time
constraints.
Courses will offer delegates an advanced participative experience in well
control certification training and well control equipment training, with classroom
and case studies complimenting workgroup sessions. Training will be offered
with simulators to give delegates handson scenario training using well control
equipment. The first course is anticipated
to be ready in December 2015.
Two trains with 8.9MM

tons of LNG are heading
from the depths of the
Indian Ocean to the coast
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INTEGRITY DRIVES
EVERYTHING WE DO.
And our offshore partnerships are no exception. Thats why
when a leading multinational energy corporation embarked
on a $29 billion LNG plant development project, they trusted
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For 85 years, weve protected the integrity of our
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GEOSCIENCES
Gene Kliewer Houston
SEG directs program at STEM students

The Society of Geophysicists planned a program to introduce
high school students to the world of geosciences at its International
Exposition and 85th Annual Meeting in New Orleans. The program
is directed at science, technology, engineering, and mathematics
(STEM) students and hopes to influence students to meet the American Geosciences Institute projected shortage of 135,000 geoscientists by the end of the decade.
Geosciences business
Geophysical and geotechnical surveys are continuing offshore
Mexico in the GoM. PEMEX has extended the ongoing campaign by
Fugro and Diavaz. The operations are in support of exploratory drilling in the Bay of Campeche and deepwaters around Perdido. The ultradeepwater geotechnical work from Fugro Synergy should be under way
now, while the geoconsulting program will continue through 2016.
Dolphin has commenced the East Campeche 2D long offset multiclient survey offshore Mexico, using the Artemis Arctic. The licensed
approved 19.597-line km (12.177-mi) survey is positioned toward the
recent Mexican announced five-year plan for leases. The survey is
supported by industry pre-funding.
Exploration in northern waters is garnering attention. The government of Norway has a line item of NOK 173 million ($21.2
million) for seismic surveys that would target the Barents Sea. The
spending is contained in the governments 2016 budget proposal.
Tord Lien, minister of Petroleum and Energy, said the government believes there are substantial remaining resources of oil and
gas in the Barents Sea, and that the survey will help to increase
activity and employment in the north.
Mapping of these areas is also important to highlight the presence in the north and to safeguard national interests, he said.
Searcher Seismic has completed acquisition of the Silver-Eye
3D seismic survey in the Hammerfest basin area of the Norwegian
Barents Sea. Silver-Eye comprises 3,000 sq km (1,158 sq mi) covering the north and south flanks in the basin.
Lundin Norway has consent to drill an exploration well on license 708 in the Barents Sea using the Transocean Arctic semisubmersible. Drilling is scheduled to start this month and run for about
two months, depending upon results.
Electromagnetic Geoser vices has signed a multi-client acquisition agreement with the Directorate General of Hydrocarbons of
India. The agreement gives EMGS a two-year permit to acquire 3D
EM data in a 325,000 sq km (125,843 sq mi) area off western India.
The area crosses eight tectonic provinces from Kutch-Saurashtra in
the north to Ratnagiri in the south.
CGG has completed processing on all four phases of its BandaSeis 2D

BroadSeis survey. Data was processed to prestack depth migration and
is available now.
CGG completes BandaSeis

survey processing
CGG has completed the processing on all four phases
of data acquired in its BandaSeis 2D BroadSeis multi-client
program around East Indonesia and Timor Leste. The program
covered more than 14,000 km (8,700 mi) and was collected in
cooperation with the Indonesian Directorate General of Oil and
Gas (Migas) and the Timor Leste National Petroleum Authority.
Data was processed to prestack depth migration in CGGs
Singapore imaging center with the final of the four phases
delivered in 2Q 2015. The results cover the Banda Arc in the
active collision zone between the Australian continental plate
and the Indonesian island arc system.
The PSDM volumes are expected to shed light on the
Mesozoic sedimentary successions, including the deltaic and
marginal marine Lower to Middle Jurassic Plover Formation
(and correlative successions) which contains excellent reservoir-quality sandstones in the nearby Laminaria and Corallina
fields (Bonaparte basin, Australia), together with the Abadi and
Bintuni Bay gas fields of East Indonesia.
The BandaSeis 2D seismic data is being correlated with
new, multi-pass satellite seep data from NPA Satellite Mapping to identify potential hydrocarbon migration pathways. A
tectonic and structural interpretation should be completed by
GeoConsulting by year-end.
Offshore Ireland joins list

of new exploration prospects
Irelands 2015 Atlantic Margin Licensing Round drew a record 43
applications. Minister of State for Natural Resources, Joe McHugh,
said the response was the largest for any of the countrys offshore licensing rounds to date, with applicants ranging from small companies
to majors. All the countrys main Atlantic basins Porcupine, Goban
Spur, Slyne, Erris, Donegal, and Rockall were included. Successful
bidders will be offered a two-year licensing option, to be granted under the Petroleum and Other Minerals Development Act, 1960.
The main purpose of the licensing option is to define exploration
potential and actively promote the acreage, but the terms do not include exploration drilling. Holders wishing to progress to exploration
license can apply for a 15-year frontier exploration license with a first
phase of three years and three subsequent phases of four years each.
Europa Oil & Gas, which applied for multiple blocks in this years
round, plans to assume a 100% interest in, and operatorship of, licenses FEL 2/13 and FEL 3/13 in the Porcupine basin.
The BandaSeis multi-client program by CGG targeted the Banda Arc

around East Indonesia and Timor Leste. More than 14,000 km (8,700 mi)
of broadband seismic data was acquired.
R E G U L AT O R Y P E R S P E C T I V E S
Review of case laws provides insight into jurisdiction of federal agencies

Robert Nichols Heather Palmer
Bracewell & Giuliani

Oil and gas exploration and production businesses recognize that
the primary regulator of occupational safety for their onshore operations is the U.S. Department of Labors Occupational Safety and
Health Administration (OSHA). The question of which agency has
jurisdiction with regard to occupational safety for offshore operations,
however, is a far more complex issue. On the outer continental shelf
(OCS), the primary regulators with regard to safety generally, including occupational safety, are the United States Department of Interiors
Bureau of Safety and Environmental Enforcement (BSEE), and the
US Coast Guard. At the same time, OSHA still maintains a jurisdictional role with regard to safety of offshore operations.
Extent of preemption
Under the Occupational Safety and Health Act of 1970 (OSH Act),
OSHA is the key regulator of occupational safety and health in the
private sector. In some states, including, for example, California and
Alaska, the agency has delegated its enforcement authority to an approved state plan agency, but in most other key oil and gas producing
states, federal OSHA continues to have direct enforcement authority.
However, there is a significant limitation on OSHA jurisdiction. Specifically, under Section 4(b)(1) of the OSH Act, the agencys jurisdiction over occupational safety is supplanted for working conditions
of employees with respect to which other federal agenciesexercise
statutory authority to prescribe or enforce standards or regulations
affecting occupational safety or health.
For many years, there was an unresolved legal dispute over how
broadly OSHA jurisdiction was preempted by the regulatory authority of another agency. For instance, some courts suggested that OSHA
jurisdiction over various industries was broadly preempted by the
jurisdiction of another federal agency. By way of example, maritime
businesses long contended that the Coast Guards safety regulatory
authority broadly preempted OSHA jurisdiction over their industry.
In its 2002 Chao v. Mallard Bay Drilling, Inc., decision, however, the US Supreme Court rejected the notion that Section 4(b)(1)
preemption creates industry-wide exemptions from OSHA jurisdiction. Instead, the court held that preemption is determined on a
hazard-by-hazard basis. In other words, if another federal agency
has promulgated applicable regulations that it enforces with regard
to a particular occupational safety hazard, then OSHA jurisdiction is
supplanted as to that particular hazard.
Outer continental shelf

First in 1953 with enactment of the Outer Continental Shelf Lands
Act (OCSLA), and then more extensively in 1978 amendments to that
law, Congress conferred jurisdiction on the US Coast Guard for occupational safety regulation for work performed on the OCS.
The OSH Act itself, however, expressly provides that OSHA has
authority over State Territorial Waters as well as Outer Continental Shelf Lands. State Territorial Waters include the area three
nautical miles seaward from the general coastline except for the
Gulf Coast of Florida, Texas, and Puerto Rico, where the state territorial waters extend for nine nautical miles.
As for the OCS, although it is apparent from the 1978 OCSLA
amendments that the Coast Guard had primary jurisdiction, because
the OSH Act expressly extends OSHA jurisdiction to the OCS, the actual regulatory role of OSHA on the OCS has remained far from clear.
The two agencies have provided some guidance concerning this
question by entering into a series of memoranda of understanding
beginning in 1979. The agencies agreed that the Coast Guard would
serve as the chief regulator of safety on the OCS but that OSHA
would retain jurisdiction to enforce its standards which apply to
working conditions on the OCS for which neither the Coast Guard
nor any other federal agency had exercised authority.
These jurisdictional issues became even more complex in 1982
when the Minerals Management Service (MMS) was created to
regulate offshore oil, gas and other mineral resource activities. Ultimately, the Coast Guard conferred jurisdiction on the MMS to conduct safety inspections of oil and gas platforms on the OCS.
Following the Deepwater Horizon accident in 2010, the Secretary
of the Interior divided the MMS into two agencies with one of those
agencies, BSEE, tasked with regulating the safety of offshore oil and
gas operations. Since that time, with the adoption of SEMS I and II,
BSEE has taken on a much more far-reaching regulatory role with
regard to safety of offshore oil and gas operations.
OSHA has effectively recognized how pervasively its jurisdiction
on the OCS has been preempted by BSEE and Coast Guard regulation. For instance, in a February 2015 interpretation letter, OSHA
explained:
The Coast Guard and [BSEE] have issued extensive regulations
applicable to occupational safety and health on the OCS. Therefore,
pursuant to section 4(b)(1) of the OSH Act, OSHA cannot enforce
its requirements to working conditions if the working conditions are
already regulated by another federal agency.
While recognizing that accident investigations and most regulatory

enforcement on the OCS are to be conducted by the Coast Guard
and BSEE, OSHA continues to take the position that it retains the
authority to enforce standards concerning occupational hazards on
structures or facilities located on the OCS for which neither the Coast
Guard nor BSEE maintain rules. Nevertheless, again, with the adoption of the SEMS rules, it would appear that preemption of OSHA jurisdiction for oil and gas operations on the OCS is far-reaching.
State territorial waters

Importantly, in State Territorial Waters, which lie between the
shoreline and the OCS, OSHA maintains much more extensive jurisdiction. For instance, neither BSEE nor the Coast Guard exercise
jurisdiction over oil and gas rigs in state territorial waters and, therefore, OSHA continues to possess jurisdiction.
Similarly, with regard to vessels that are designated as uninspected vessels for purposes of Coast Guard regulation, OSHA
retains jurisdiction except as to those very limited conditions for
which the Coast Guard regulates uninspected vessels.
Also, even on Coast Guard inspected vessels, OSHA retains
some jurisdiction in state territorial waters with regard to individuals who are not regarded as seamen for Jones Act purposes.
Conclusion
Effectively, OSHAs regulatory involvement with activities on the
OCS is very limited. While OSHA, in theory, retains the right to enforce its regulations on the OCS for working conditions that have not
been regulated by BSEE or the Coast Guard, OSHA recognizes it has
little authority on the OCS given Section 4(b)(1) preemption principles.
Practically speaking, however, even on the OCS, employers should
make every effort to comply with OSHA-specific standards where
those standards are not inconsistent with an applicable BSEE or Coast
Guard rule. After all, BSEE and Coast Guard regulators may look to
OSHA standards for guidance and also retain the authority to involve
OSHA with respect to safety concerns not regulated by either agency.
Additionally, in tort litigation, an OSHA standard may be viewed as
indicative of what is reasonable or appropriate conduct.
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TO KEEP THE MIDSTREAM MOVING.
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C A S P I A N S E A U P D AT E
Caspian Sea could satiate

growing demand for gas
Operators shift focus to developing existing fields
onsidered one of the oldest hydrocarbons producing areas in the world

with the potential to emerge once
again as a major source of growth
in the global oil and gas supply, the
Caspian region could make a significant contribution to the global gas balance. Capex
spending in the Caspian region is estimated
to reach $55 billion between 2015 and 2020
with the region estimated to hold more than
200 Bbbl of crude worth $4 trillion, according to the US Department of Energy.
However, exploration activity has waned
in recent years, Gabriel Mynheer, Russia and
Caspian upstream research analyst for Wood
Mackenzie, told Offshore. Over the last 10
years, only eight fields have been discovered.
A distinct lack of rig availability, complex
geology, and difficult weather conditions has
led to extremely high exploration costs, he
added. Due to this, operators have shifted
their attention to appraising and developing
existing fields.
He noted: Unlike the rest of the world,
the Caspian is a closed market with most
rigs being in high demand and operators
therefore unlikely to realize their like-for-like
costs. However, some savings have and can
be made through increased efficiencies and
reduced drilling times as has been seen at
the Shah Deniz field.
Offshore exploration drilling in Kazakhstan
has been restricted with most jackup rigs under long-term contracts. In mid-2015, Lukoil
loaned the Astra rig to NC KazMunaiGas (NC
KMG) and ONGC to spud the first well on its
Satpayev prospect. Plans are to drill an exploration well at the Satpayev structure, which
lies in the northern part of Kazakhstan sector
of the Caspian Sea at a distance of 90 km (56
mi) from the coast, this year.
The commissioning of the new Satti jackup in 2015 could boost offshore exploration
in the area, he said, which is slated to drill the
second exploration well at the Satpayev block
by mid-2016.
Furthermore, three Eurasia jackups have
been active in the Caspian region with a few
securing long-term contracts. The jackup Astra
drilled a well for N Operating Co. in the Kazakh
sector, followed by a well for Lukoil in the Rus30 Offshore November 2015 www.offshore-mag.com
Robin Dupre
Sr. Technology Editor
sian zone. In the Turkmen sector, the jackup

Saturn drilled two wells for Petronas Carigali,
while the Neptune jackup drilled three wells
for Dragon Oil on the Cheleken Contract Area.
The Neptune rig is slated to drill the first exploration well at the Hazri prospect in 2016.
A fourth newbuild jackup, Mercury, mobilized to Turkmen waters where it is awaiting
certification and license to drill/permits, currently delayed by alterations to clients drilling plans.
In addition, EDC drilled and completed
three wells on Lukoils Yuri Korchagin field
platform in the Russian sector.
In Azerbaijan, BP and SOCAR are both
awaiting the arrival of the new Keppel semisub, Mynheer commented, to drill exploration wells at the Shafag-Asiman and Babek
prospects, respectively. The vessel is scheduled for delivery in the final quarter of 2016
and will be built to drill in the Caspians hard
conditions at depths of up to 12,000 m (39,370
ft) below the seabed. The rig would be used

to drill for gas at Babek, which the company
indicated might contain as much as 400 bcm
of gas and 80 MM metric tons of condensate.
Interpretation of 3D seismic on this area is
completed, read the report from BP-Azerbaijans 2Q15 results. The survey process lasted
18 months and now an additional six months
is needed to plan drilling of the first exploration well. It is reported that the depth of the
first well on the Shafag-Asiman block is about
6,500 to 7,000 m (21,325 to 22,966 ft) and
high-pressure and high-temperatures are expected during drilling. The water depth in the
area varies between 650 and 950 m (2,133 and
3,117 ft) and total area of the block is 1,100 sq
km (425 sq mi). According to the preliminary
data, the productive thickness totals about
3,000 km (1,864 mi) and the depth is between
5 and 8 km (3 and 5 mi). Until now, no geological exploration work has been conducted
in this area.
The contract for development of the block
between SOCAR and BP Exploration was
signed in July 2010 and was entered into force
in July 2011 with each holding a 50% share. The
contract was signed for a 30-year period with
Gas fields and prospects in the Caspian Sea. (Photo courtesy BP)
C A S P I A N S E A U P D AT E
the possibility of an additional five years. The

exploration period is four years with the possibility of three additional years, depending on
the drilling programs outcome. Two wells are
expected to be drilled in the first stage with an
additional two wells to be drilled in the second
stage. Once operation kicks in, both parties will
be joint operators.
Isatay block
In June 2015, Eni and KazMunayGas (KMG)

finalized an agreement that defines the commercial terms of the transfer of 50% to Eni of the subsoil use rights in the Isatay block in the Kazakh
Caspian Sea. The block is estimated to have significant potential oil resources and will be operated by a joint operating company established by
KMG and Eni on a 50/50 basis.
KMG will benefit from Enis proprietary
technology, exploratory success, and experience in environmentally and technically challenging conditions of the Caspian Sea shelf,
the company recently commented in a press
release. The license is expected to be issued in
the next few months.
This agreement will be the first offshore license issued in Kazakhstan since 2010 and will
benefit from recent additions to Kazakh rig capacity. Under the new contract, the operator is
to conduct seismic work and to drill at least one
well during a six-year exploration period.
Shah Deniz
As for Shah Deniz, the $28-billion Phase

two development is under way, added Samuel
Lussac, research manager for Wood Mackenzies Caspian Upstream research service,
with 40% of the upstream development complete as of mid-2015.
BP Exploration extended its contract at
the field with the contract extension period
commencing in May 2016 and will run until
2021. The rig has been built for year-round
operations at water depths from 40 to 1,000
m (131 to 3,281 ft).
We are very pleased with the extension
of Maersk Drillings Heydar Aliyev rig and
look forward to continue our long-standing
cooperation with BP, said Claus V. Hemmingsen, CEO of Maersk Drilling and member of the Maersk groups executive board
in a released statement.
Kashagan
The Kashagan partners are currently investing around $4 billion to replace faulty
pipelines to shore remarked Mynheer, after sour gas leaks forced production to halt
soon after it began in late 2013. Following investigations, the partners decided that both
the oil and the gas pipeline will be replaced.
Production is targeted to restart in late
2016/early 2017. However, Wood Mackenzie believes that production restart is unlike-
ly during the winter as harsh weather conditions will complicate testing of the pipes,
he added. We therefore expect production
restart in mid-2017 at the earliest.
The consortium will likely embark on a
second development phase but the timing
and scope are uncertain, he said.
Liquids production in Kazakhstan could
indeed remain stable in 2016, added Lussac. Delayed startup at Kashagan obviously
has an impact.
In addition, Tengizchevroil (TCO), which

operates the supergiant Tengiz field, is
keeping production flat, at around 580,000
b/d until the oil price recovers (targeted for
mid-2016), Lussac noted. Because of this,
production from TCO is about 10% lower
than previously anticipated.
Kazakhstan continues to rely on Kashagan
restart and expansion phases at Tengiz and
Karachaganak to increase production now
that mature fields are in decline.
B L A C K S E A U P D AT E
Turkish Stream pipeline

project still under study
Bruce Beaubouef
Managing Editor
fficials from the Russian and Turkish

governments, along with their national
oil and gas companies, are still weighing their options for the construction
of the proposed Turkish Stream natural gas pipeline system. Despite a number of
apparent setbacks over the summer, Turkish
and Russian officials insist that the project is
still on course and will be built.
Turkish Stream calls for the construction
of four 565-mi (909-km) offshore pipelines to
move Russian gas through the Black Sea to
Turkish and possibly European markets.
Turkish Stream was first announced last
December, when officials from Gazprom and
Turkeys Botas Petroleum Pipeline Corp. signed
a memorandum of understanding to construct
an offshore gas pipeline across the Black Sea
toward Turkey.
As originally proposed, Turkish Stream would
move 63bcm (2.2 tcf) on an annual basis to Turkish and European markets, of which 14bcm/yr
(494 bcf/yr) would go to Turkish consumers. The
remainder would be conveyed toa delivery point
on the border between Turkey and Greece, and
distributed from there to European markets.
The Russkaya compressor station in Russias Krasnodar Territory, under construction
forSouth Stream, would serve asthe pipeline
starting point.
Gazprom said that 410 mi (660 km) ofthe
route would be laid within the old corridor
oftheshelved South Streamprojectand that
roughly 155 mi (250 km) would be laid within
a new corridor toward the European part
of Turkey. These initial plans called for the
first string of Turkish Stream to come online
in December 2016.
But, various reports issued over the summer indicated that Turkish Stream had been
delayed due to differences between Russia
and Turkey over the structure of the project.
A report on the Russia Today website said
that talks between the two governments had
been de facto halted in June.
According to the report, Russian officials
indicated that the main obstacle to the negotiations was the fact that Turkey had no cabinet of ministers at that time. The issue of the
projects number of pipeline strings and gas
price ostensible stumbling points, according to several reports did not play such an
important role, officials said.
Subsequently, Russian Energy Minister Alexander Novak and Turkish Ambassador to
The proposed Turkish Stream system calls for four 565-mi (909-km) offshore pipelines to move Russian natural gas across the Black Sea to Turkish and possibly EU markets. (Courtesy Gazprom)
Russia mit Yardim denied rumors that the

project had been suspended.
In August, Russian officials sent two offers
to Ankara relating to the project, apparently
showing readiness to decouple the construction of a pipeline for gas deliveries to Turkey
from the proposed pipes for transit of Russian
gas to Europe.
At that time, Russias Energy Minister Alexander Novak said that Moscow was ready
to sign an intergovernmental agreement for
the construction of one line of Turkish Stream
that would supply gas for the Turkish market.
Novak also said the Turkish side was studying
that proposal.
But on Sept. 11, Turkish officials said that
discussion on the proposed pipeline had been
suspended due to preconditions imposed by
Gazprom over the discount Turkey wants in
the price of Russian gas imports. At a conference in Istanbul, Turkish energy ministry
official Sefa Sadik Aytekin said that while
the two sides had not walked away from
the table, the talks were, however, frozen.
Aytekins comments were quoted in a Radio
Free Europe/Radio Liberty online report.
That statement was followed by a meeting
of Russian President Vladimir Putin and Turkish President Recep Tayyip Erdo an in Mos-
cow on Sept. 23. That meeting seemed to get

the project going again, as both leaders agreed
that work would continue on the project.
At a meeting in Moscow, Russian President Vladimir Putin and his Turkish counterpart Recep Tayyip Erdo an agreed that
work would continue on the project, Kremlin spokesman Dmitry Peskov said.
It is complex work which implies difficulties, but it will all follow its course, Peskov
was quoted to say by Radio Free Europe/Radio Liberty. Peskov also indicated that two
leaders would meet again before the years
end to coordinate their approaches to the
partnership.
Following that meeting, a source at Russias
Energy Ministry told TASS that the presidents
of Russia and Turkey had agreed on a phased
implementation of the project. Reportedly, a
separate intergovernmental agreement will be
concluded for the construction of pipes 2 to 4,
which are projected to carry gas to the EU via
Turkey.
Negotiations between Russia and Turkey
over the first stage of Turkish Stream are expect to continue in November, when Ankaras
new government is to be formed. The first line
of the Turkish Stream project is expected to
cost 3.3 billion ($2.9 billion).
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O F F S H O R E C A N A D A U P D AT E
Newfoundland and Labrador opens

frontier Flemish Pass blocks for licensing
Report highlights Cretaceous, Jurassic prospectivity
Jeremy Beckman
Editor, Europe
esources in the Flemish Pass area offshore eastern Newfoundland could amount to 12 Bbbl of oil and 113 tcf of gas,
according to a new report. It is the first time the provincial
government has issued a resource assessment ahead of a licensing round, in this case for 11 parcels of land under the
Call for Bids NL15-01EN, due to close Nov. 12. This is also the first
call for bids offshore under the provinces new Scheduled Land Tenure Regime which will open up other frontier offshore areas at regular intervals over the next few years, including previously undrilled
waters offshore Labrador.
Nalcor Energy, the provincial energy corporation, and the Newfoundland and Labrador Department of Natural Resources (DNR)
commissioned Paris-based petroleum consultancy Beicip-Franlab to
perform an independent assessment of the potential of the Flemish
Pass. Statoil has drilled three deepwater oil discoveries in the area
over the past six years, based on new geoscience data over the 11
parcels offered. This covered an area of roughly 24,000 sq km (9,266
sq mi), around 1.6% of the provinces total offshore area of 1.5 million sq km (580,000 sq mi).
Beicip-Franlabs analysis reveals a prolific petroleum system with
three main reservoirs sourced by two constrained source rocks.
Hydrocarbons appear to be trapped and sealed regionally through
rotated Jurassic and Cretaceous blocks and large Cretaceous turbidite complexes.
Nalcor and Beicip-Franlab started their joint program this January,
taking in the 2015 license round parcels and surrounding acreage. The
study drew on data from 10 historic offshore wells, each with an associated set of petrophysical logs, stratigraphic markers, and geochemical
reports. Excluded were the recent discovery wells in the Flemish Pass
area, full results of which are not yet in the public domain.
Nearly 160 exploration wells have been drilled so far offshore
Newfoundland & Labrador, many in the Jeanne dArc basin where
four fields are in production and another is due to come onstream in
2017. Exploration in the deeper waters of the Orphan/Flemish Pass
basins followed the initial wave of activity on the Grand Banks. Gabriel C-60, the first well in the assessment area, was drilled in 1979,
encountering Hibernia-equivalent reservoir but no mature source
rock. Subsequent wells in the 1980s (Baccalieu 1-78 and Lancaster
G-70) did encounter good quality Kimmeridgian source rock, while
Kyle L-11 drilled through early Cretaceous reservoir sandstones.
Over a decade later, the first 3D survey was acquired in the region
and in 2003, PetroCanada drilled the Mizzen L-11 well, delivering
5 m (16.4 ft) of light oil pay from early Cretaceous sandstones, although the find was sub-economic. Statoil proved more commercial
oil on the same structure six years later in 1,100 m (3,609 ft) of water, targeting late Jurassic sandstones, in the process reviving the industrys interest in the Flemish Pass basin. Statoil/Husky Energys
The 11 offshore parcels offered under this months Call for Bids.
(Image courtesy Nalcor Energy)
subsequent deepwater Harpoon and Bay du Nord discoveries are

surrounded by the parcels outlining the current Call for Bids. Bay
du Nord is thought to hold 300-600 MMbbl recoverable. Other (unsuccessful) wells drilled through the Jurassic on the eastern side of
the Orphan basin were Great Barasway F-66 (2006) and Lona 0-55
(2010).
Northward extension
In 2007, Nalcor was established as an energy company with a

brief that included commissioning new geoscience data to open
more of the provinces offshore waters to exploration. The company
is a minority partner in some of the provinces major existing and
new field developments, including Hebron and Hibernia Southern
Extension, and can also take equity in frontier licenses, although it
does not participate in license rounds as it does not consider itself a
competitor to oil companies.
In late 2010 Nalcor, supported by Airbus Defense and Space,
O F F S H O R E C A N A D A U P D AT E
conducted a regional oil seep mapping and

interpretation study over Newfoundland
and Labradors entire 1.5 million sq km-plus
offshore. Satellite data acquired during this
campaign imaged areas of potential natural
seepage in the Orphan/Flemish Pass basins,
indicating a regional working petroleum
system. Two years later, Nalcor supported a
TGS/PGS-conducted 2D multi-client survey
that generated a 10 x 10-km (6.2 x 6.2-mi)
data grid over the Flemish Pass area.
Around the same time, TGS and PGS had
also begun acquiring data for a 10 x 10-km
2D grid over the slope and deepwater areas
offshore Labrador to the north, and during
2014 this was infilled, resulting in a 5 x 5-km
(3.1 x 3.1-mi) grid. Also in 2014, Norwegian company EMGS acquired a controlled
source electromagnetic (CSEM) survey to
characterize and de-risk leads in this area.
Rifting events
This years report assessed regional and

detailed fault mapping to provide constraints
on the timing of fault activities and the impact on oil expulsion, migration pathways,
and trapping in the 2D section and the 3D
model. Both the Flemish Pass and Orphan
basins are affected by three consecutive
extensional episodes, and the timing of the
deformation and chief direction of the faults
appears compatible with the North Atlantic
Margin Mesozoic rifting history.
The study area highlights late Jurassic to
early Cretaceous rifting that led to spreading between Newfoundland and Iberia during the early Cretaceous. This was the main
cause of fault-related trap opportunities at Tithonian reservoir levels. Analysis has identified four main phases of fault activity. However, only the principal regional fault trends
have been inserted in the model, as these
structures appeared most likely to have impacted the regional migration character for
the area. In the 3D petroleum system model
they behave either as pressure barriers or
have limited impact in fluid flow especially
from the late Cretaceous onward as they are
sealed by overlying stratigraphy. The initial
3D petroleum system model, comprising 10
stratigraphic layers, was then subdivided
into 35 layers to allow identification of main
components of the petroleum system, while
preserving the main regional lithological
and sequence stratigraphic events.
Within the NL15-01EN license area there
appear to be multiple large-scale Cretaceous
Fan plays, many of which display an AVO response when viewed in the gathers and on
near and far-angle stacks. There also appear
to be numerous Jurassic tilted fault block
plays, some of which have been imaged over
two or more 2D seismic lines, again displaying an AVO response. In addition, there are
multiple upper and lower Cretaceous fault

block plays, some of which have been imaged over two or more 2D seismic lines.
In its conclusion, Beicip-Franlab states
that the main and proven source rocks
(Kimmeridgian and Tihonian) appear to be
generating oil during the lowermost Cretaceous interval and began expelling oil a few
million years later to the north of the study
area. Maturation and expulsion occur much
later to the south (Tertiary) due to late buri-
al of late Jurassic layers. As the basin evolution was well advanced, the Tithonian and
lowermost Cretaceous sands were already
deposited. Timing of maturation and expulsion appears compatible with oil and gas
entrapment in these main plays, while the
Tithonian appears to hold the highest volumes of in-place oil and gas due to a combination of an efficient vertical migration from
the source and substantial lateral migration
within the Tithonian interval.
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A R C T I C U P D AT E
JIP examines Arctic oil spill

response systems
il response technologies in the Arctic are the focus of a significant research program led by nine major
oil and gas companies whose goal is
to further advance a range of oil spill
response technologies and methodologies
in the Arctic.
The Arctic region is estimated to hold 13%
of the worlds undiscovered petroleum and
30% of undiscovered natural gas. As such,
the region represents a hugely important
area for supplying the energy demands of
the future.
Joe Mullin
Arctic JIP
Field testing of fire-resistant booms

in low concentrations of drift ice,
offshore Norway. (Photo courtesy Arctic JIP)
Arctic JIP goals
Industry research over the past two decades

already includes hundreds of studies, laboratory basin experiments, and field trials from
the United States, Canada, and Scandinavia a
noteworthy recent example being the largescale, comprehensive study by the Norwegian
research institute SINTEF. In 2009, members
of the International Petroleum Industry Environmental Conservation Association Oil Spill
Working Group, Industry Technical Advisory
Committee, and American Petroleum Institute
Emergency Preparedness and Response Program Group formed a joint committee to build
on this body of research.
One of the committees recommendations
was the establishment of a joint industry
program (JIP) charged with undertaking
targeted research projects in identified priority areas. The JIP on Oil Spill Response
Technology was officially launched in 2012
and represents a pooling of knowledge, resources and insights from nine international
oil and gas companies BP, Chevron, ConocoPhillips, ENI, ExxonMobil, North Caspian
Operating Co., Shell, Statoil, and Total. The
JIP is supported by the International Association of Oil and Gas Producers and is the
largest pan-industry program dedicated to
this area of research. While the industry remains focused first and foremost on preventing any oil spill from ever occurring in the
Arctic, it is also committed to be prepared
for a spill, however unlikely. The ability to
use a broad range of response options and
adapt to changes in conditions is essential to
mounting the most effective response possible in the region.
Creating international research programs
to further enhance industry knowledge and
capabilities in the area of Arctic oil spill response, the JIP looks at all aspects of oil spill
preparedness, oil spill behavior, and options
for oil spill response in the Arctic marine environment, to minimize any impact.
The JIP has defined six core research
themes, each with a dedicated expert technical working group comprising the top
researchers from each member company;
industry experts; and world renowned academic institutions. The core research themes
cover: dispersants; environmental effects; trajectory modeling; remote sensing; mechanical
recovery and in situ burning, and address the
differing aspects involved in oil spill response,
including the methods used, and their applicability to the Arctics unique conditions.
Results so far demonstrate the potential
viability of multiple oil spill response technologies in arctic conditions, beyond mechanical recovery.
Findings: In situ burning
The controlled in situ burning (ISB) of an

oil slick is a well-established response technology that has been the subject of research
since the 1950s. ISB has also proved effective
for oil spills in ice conditions, having been
successfully employed to remove oil from
storage tanks and ship accidents in Alaska,
Canada, and Scandinavia since the 1970s. Significant findings from JIP-sponsored research
confirms that there is a considerable body of
scientific and engineering knowledge on ISB
to ensure safe and effective response in open
water, broken pack ice and complete ice cover. More than 40 years of research, including
large-scale field experiments so far show that
ISB is one of the response techniques with
the highest potential for oil spill removal in
arctic conditions. Results show that the technology already exists to conduct controlled
ISB of oil spilled in a wide variety of ice conditions. Additionally, most perceived risks associated with ISB can be mitigated by following
approved procedures, using trained personnel, and maintaining the correct separation
distances between burning sites.
Herders
Herders are designed for application around

the perimeter of surface oil, causing it to
gather in a more concentrated location thus
facilitating mechanical recovery or ISB. Research is being initiated to improve knowledge on the effects and performance of such
herders in ice prone waters.
A lined, 8,400-sq m (90,417-sq ft) aboveground temporary test basin simulating arctic
conditions was constructed in the Poker Flat
Research Range outside Fairbanks, Alaska
in late 2014, to host trials carried out in April
2015. These trials were the first operational
combination of aerial application of herders
and in situ burning, where herders were applied to an oil slick by manned helicopters.
The tests successfully demonstrated, for the
first time, that applying herding agents and subsequently igniting a free-floating oil slick using
equipment mounted on a helicopter is feasible.
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Aerial application of herders to enable in situ

burning without booms is potentially a stepchange advance for offshore oil spill response
in both open water and ice, with response times
much faster than vessel support. The initial
results also indicated that oil spill responders
should consider herding technology a safe, lowrisk, and efficient method for enhancing proven ISB in light to medium ice concentrations
where spills could rapidly spread and the use of
fire containment booms is impractical.
Dispersants
The Dispersant Testing under Realistic
Conditions report reveals that dispersants
can work in the Arctic, and can, under certain
conditions, be more effective in the presence
of ice than in open water. This is because the
presence of ice can increase the window of opportunity which dispersants can be deployed.
In March 2015, the JIP completed phases
two and three of its dispersant effectiveness
testing project to define windows of opportunity under arctic conditions. These phases involved establishing boundaries for the experiments, including whether artificial ice can
suitably replace natural ice and examining
the role oil chemistry plays in determining oil
dispersibility. Fifteen tests were conducted at
Above: Setting up an experiment ice floes in the basin before the addition of water. (Photos courtesy DF Dickins Associates) Below: ES-6 Responder UAV spraying simulated herder and carrying
ignited flare.
SINTEF (Tronheim, Norway) using Troll,

Oseberg Blend, and Grane crude oils and another 15 tests took place at SL Ross (Ottawa,
Canada) using ANS and Grane crude oils.
Significant findings from the experiment
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show that dispersion was highly related to the

amount of mixing energy applied during a test.
Therefore, if natural mixing energy is too low,
propeller wash from a vessel can be used to
significantly enhance dispersion. Additionally,
dispersion efficiency was not affected by ice

concentrations of either 50% or 80%.
Research experiments on the use of polyethylene blocks (PEblocks) to improve dispersant
effectiveness test repeatability were carried out
to investigate if PEblocks behave similarly to
natural ice, and therefore if they can be used in
future dispersant and mineral fines efficiency
testing. Findings from these tests showed that
replacing PE-blocks with natural ice did not
influence weathering or dispersant efficiency.
However, the PE-blocks did behave differently
than ice in the flume, so all experiments were
performed using natural ice.
In addition to the three reports from Phase
one of the project as mentioned previously,
the JIP will be publishing a full report for all
three phases on the organizations website.
Future research will include treating oil from
these scenarios after it is released during
the spring melt, or treating oil from a point
release source before it enters the environment, together with examining dispersant
injection during well-control events.
Environmental impacts
The first stage of this project collected existing information on the environmental effects of an arctic oil spill as well as the impact
of the technologies used to respond to such a

spill. The second phase adapted the format of
the phase one report and literature database
to support a web-based presentation of these
materials as an education and resource tool
for NEBA practitioners, stakeholders, and
the public. In March 2015, the JIP marked a
first with the launch of an online tool to aid
arctic oil spill decision-making. The tool is the
first time the substantial volume of existing
research on the environmental effects of oil
and oil spill response techniques in the Arctic
has been compiled and reviewed in one place.
findings have already been produced: Oil Spill

Detection and Mapping in Low Visibility and
Ice Undersea Remote Sensing and Oil Spill
Detection and Mapping in Low Visibility and
Ice Surface Remote Sensing. Findings so far
indicate that the industry already has a range
of surface and airborne imaging systems that
can be deployed from helicopters, fixed-wing
aircraft, vessels, and drilling platforms that
are suitable for ice conditions. The analysis of
data collected from all of the experiments will
contain recommendations of sensors or sensor
combinations for deployment in the Arctic.
Remote sensing
Conclusion
The ability to accurately detect and map

oil-slicks is of particular priority in the Arctic
region, as oil can be obscured from view by
low visibility and periods of almost complete
darkness, and/or hidden under snow and ice
cover. The TWG has completed work with CCORE and the Polar Ocean Services/Woods
Hole Oceanographic Institute to conduct a
technical assessment of existing and emerging
surface and subsea technologies that included
an evaluation of further research and development needs, logistical support requirements,
and operational considerations including testing opportunities. Two reports outlining these
The JIPs findings to date highlight that the

industry is prepared and has a wide range of
viable technologies for oil spill response in the
presence of ice in open water. The industry also
has a role to play in helping countries in arctic
jurisdictions understand the benefits of having
a regulatory process in place to approve the
use of all of these response methods and technologies. As such, the results of studies will be
published in peer-reviewed journals, and materials have been developed for the benefit of
the wider audience interested in Arctic oil spill
response, including NGOs, policymakers, and
members of the environmental community.
Arctic OSVs enter new

regulatory environment
rowing industry interest in Arctic E&P

has brought about a number of regulatory changes in the international arena.
One of the most noteworthy of these
was the official adoption on May 15,
2015, by the International Maritime Organization (IMO) of the final remaining parts of the
International Code for Ships Operating in Polar
Waters, aka, the Polar Code.
The goal of this IMO-led initiative is to promote safety and reduce environmental pollution from the growing number of vessels
operating in Arctic and Antarctic waters. The
adoption of the Polar Code is a meaningful
step forward for the industry toward sustainable activities in these regions.
Developing a PSC
Offshore support vessels (OSVs) also will be
required to carry a mandatory Polar Ship Certificate (PSC), which will be reviewed by port
and coastal states. The PSC is used by own40 Offshore November 2015 www.offshore-mag.com
ABS
a lower PST. Over-specification can be quite

costly as well. If an unrealistically low PST is
selected, equipment costs can be prohibitively
expensive, and the number of equipment suppliers can be limited, which impacts both initial
cost and through-life parts supply.
Establishing the PST
Applying the Polar Code

The Polar Code requires vessel operators
to perform an assessment of intended activities, taking into account a variety of factors,
including the anticipated range of operations
as well as the environmental conditions and
hazards the vessel could face. The objective is
to use voyage planning exercises coupled with
a hazard identification assessment to create a
mandatory Polar Waters Operations Manual
(PWOM), which has to be kept onboard as a
resource for the crew.
The PWOM must provide information
about the effects of low temperature on the
ships structure, equipment and personnel; operational limitations while in water containing
sea or glacial ice; operations where sea spray
could freeze and accumulate on the ship; the
effects of high latitude on communications;
and remoteness. The PWOM also provides information for pragmatic mitigation of the risks
associated with these hazards, taking into
account the dynamic nature of the operating
environment. Operational practices, for example, might need to change as daylight varies
from four to 24 hours, temperatures vary from
-15 C (5 F) to -30 C (-22 F), or ice coverage
changes from 3/10ths concentration (30% coverage) of thin first-year ice to a combination
of 4/10ths concentration of thick first-year ice
and 5/10ths multi-year ice.
James Bond
John Dolny
This ice breaker, like all vessels that will work

in Polar regions, is required to comply with the
Polar Code.(Courtesy ABS)
ers, charterers and crew in assessing a units

capabilities and limitations. In addition to verifying that the vessel complies with the Codes
relevant requirements, the PSC lists key information about the ship, including its Ice Class,
the Polar Service Temperature (PST) and any
defined operational limitations.
Ice Class is defined either according to
the International Association of Classification
Societies (IACS) as Polar Class 1 through 7
or by Finnish-Swedish Baltic ice classes as
1AS through 1C. Ice Class indicates the design and construction standard and the vessels ice operational capability. The PST is the
lowest temperature at which all safety equipment is certified as fully functional.
The key challenge in determining ice class
and PST is understanding the potential geographical areas and seasons in which the OSV
is likely to operate (both where and at what
time of year) throughout its service life, and
then assigning the correct environmental operational profile, including both temperature
and ice conditions.
The consequences of getting the PST wrong
either under or over specification can be
quite severe. It is expensive to rebuild a ship
to increase its ice class or refit equipment for
IMO provides a standard method for determining an appropriate PST, which is the
lowest mean daily low temperature minus 10
C (18 F) for the region and time of year of operation. The PST is determined based on data
from at least 10 years of temperature records.
To help OSV designers and owners select
an appropriate PST, ABS has compiled a substantial amount of temperature data and guidance in the latest revision of the ABS Guide for
Vessels Operating in Low Temperature Environments (LTE Guide), which was published
in October 2015.
There are two enablers to assist with the process of determining ice class. The first is a result
of a World Meteorological Organization working
group on standardization of ice charting and reporting. It is called the Egg Code, and it is the
basis for ice reporting worldwide. The Egg Code
lists ice concentration (aerial extent coverage, reported in 10ths), the type of ice (following standardized definitions), sub-concentrations of each
ice type present, and an indication of the floe size
associated with each ice type.
The second enabler is the result of an IACSled effort at IMO. Referenced in the Polar Code
as a newly developed circular, it is a methodology for evaluating risks associated with operating a specific ice-class vessel in actual ice
conditions. The methodology, called POLARIS
(Polar Operation Limit Assessment Risk Indexing System), builds on work done by the
Canadian, Russian, Finnish, Danish, and Swedish administrations. It allows for a relatively
simple calculation of a single integer value risk
indicator with the underlying assumption that
the vessel has an appropriate hull form for the
operational profile.
OSV design and construction must meet
safety standards as a starting point of prudent
operations. The Polar Code raises the bar for
safety and pollution prevention in Arctic and
Antarctic waters by requiring operators to document the tasks they will undertake in Polar
regions, so that design and construction are
appropriate and allow for safe operations.
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Processing-based broadband enhances

image quality in frontier areas
Allan Willis
Sean Poche
Tomislav Degel
Richard Clarke
Spectrum Geo Inc.
n recent years, there has been a significant amount of research and development related to marine broadband technology, both to remove the effect of the
marine ghosts (reflections from the sea
surface), and to obtain a broader bandwidth
of useable seismic frequencies (both low and
high). These works are generally separated
into acquisition and processing solutions.
The goal here is to examine a processingbased broadband solution that can help improve imaging in frontier regions or under-explored areas using conventional flat streamer
acquisition configuration. The data examples
cover acquisition in deepwater (offshore Brazil) and shallow water (offshore Croatia).
Ghost reflections
A well-known issue in conventional marine

flat streamer data is the interference from the
free-surface ghosts from both source and receiver sides. These ghost reflections interfere,
either constructively or destructively, with
primary reflections. They also distort the frequency by creating spectral notches and the
phase spectrum of the recorded seismic data.
In general, the effect of the sea surface ghost
on constant-depth towed streamer is greatly in-
Ray paths of source and receiver ghosts in typical towed marine seismic acquisition, illustrating that marine ghosts are unavoidable since both seismic source and streamer cable are towed
beneath the sea surface. (All images courtesy Spectrum Geo Inc.)
fluenced by source and receiver depths as well

as water velocity and sea state. Shallow towing
depth will help to avoid the ghost notches by
recovering higher frequencies but attenuate
lower frequencies, while deep tow recording
recovers low frequencies at the expenses of attenuating high frequencies.
Over the years, developments in broadband
acquisition techniques (such as variable-depth
or dual-sensor streamer) have addressed the
notch issues. More recently, many processingbased methods have been introduced because
broadband processing can be a cost-effective
solution to remove the severe ghost notches,
enhance the seismic resolution, and improve
structural and stratigraphic images, especially
for marine seismic data acquired using conventional flat streamer.
Broadband-processed data has marked
benefits for imaging and seismic inversion
as it outlines detailed high-resolution features of shallower traps as well as providing
A seismic line from offshore deepwater Brazil. The expanded bandwidth,

in particular at the lower frequency end, of the broadband-processed
seismic section shows greater resolution of seismic events, as well as
better penetration of signal in the deep section.
deeper penetration and significant improvement for imaging deeper targets.
De-ghosting
The ghost removal process used in Spectrum Geos broadband processing is a nonlinear inversion process that adapts the leastsquares minimization method, which is based
on either minimum energy or minimum absolute amplitude. This method estimates both
source and receiver ghost times, as well as the
reflection coefficients at the air/water interface for both the source and receiver ghosts.
The process derives a recursive filter which is
then applied to the pre-processed seismic data
to create a ghost-free data.
After proper de-ghosting, the amplitude
spectrum of the resulting full-stack section
should show improvement in recovering both
the low frequencies and the notches that were
weakened by the ghosts. However, the seismic spectrum may often have a linear decay or
A seismic line from a shallow-water area off Croatia. The extra low frequencies, resulting from broadband processing, give clear differentiation
between sedimentary packages.

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roll-off of amplitude in the high-frequency content, especially in the deep part of the section.
The loss of higher frequencies is due to the
earths absorption effect (known as Q) and
can easily be recovered with the application of
pre-stack amplitude-only Q-compensation.
Offshore Brazil
The first data example discussed here is located in the deep waters of the Sergipe basin
on the northeast coast of Brazil. This area has
been attracting much attention since Petrobras drilled the successful Barra well in 2010,
and the subsequent Barra-1 appraisal well.
Other discoveries in the deepwater area of
the basin include the Muriu and Farfan finds,
which are in the turbidite channel systems of
Mid- to Late- Cretaceous and Early Tertiary
age. Stratigraphic hydrocarbon plays such
as channel-fill sediment, rifted basin fill, and
faulted Paleozoic sediment are key to exploration opportunities in this area. Therefore,
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improved identification and mapping of these

potential reservoirs is essential.
In 2014, a deep-towed 2D dataset was acquired with a flat streamer and a single air-gun
source at depths of 15 m (49 ft) and 10 m (32
ft), respectively. The result from the final prestack time migrated stack with broadband processing showed a significant uplift in the low
frequency content and temporal resolution.
Offshore Croatia
This second data example is from the shallow-water area in the Croatian Adriatic Sea.
The Adriatic offshore hydrocarbon province
lies below the shallow waters between Italy
and Croatia on the northern margin of the
Mediterranean Sea. The Italian Adriatic is relatively well-explored while the eastern Croatian
margin remains comparatively untouched.
Despite the generic similarities, the nature
of the carbonate oil play offshore Croatia is
significantly different from that on the Italian
margin. Therefore, high-quality seismic is required to successfully image the Triassic and
delineate source kitchens, identify platform
margin reservoirs, and support basin modeling to constrain the timing of charge.
A shallow-towed 2D dataset was acquired in
2013 with a flat streamer and a single air-gun
source at depths of 8 m (26 ft) and 6 m (20
ft)respectively. After broadband processing,
interpretable low-frequency signal was made
available, providing strong discrimination of
layers and highlighting subtle features, and
subsequently enhancing interpretation across
faults and other major structural features as
well as improved quantitative inversion.
Conclusions
In recent years, the exploration focus has

shifted to stratigraphic and deeper plays, especially in frontier and under-explored areas,
and the demand for broadband seismic data
has also increased accordingly. In conventional marine streamer acquisition, the reflections from the sea surface can strongly impact the seismic frequencies and bandwidth
of the recorded data that is directly related to
both source and streamer depths. Traditional
processing works well only at frequencies
below the first ghost notch. De-ghosting, followed by pre-stack application of appropriate
inverse-Q filtering, can remove this limitation and recover lost bandwidth to produce
a broader and balanced spectrum, thereby
improving the resolution and interpretability
of the seismic section.
Broadband data processing has been a hot
topic for the last few years. Its value is evident
from these two data examples, with improved
resolution and bandwidth providing stronger
discrimination of seismic events, as well as clearer imaging of deep targets resulting mainly from
the increased low-frequency content.
New circulation sub improves

lost circulation mitigation
luid loss is a familiar problem with a

known solution: pumping lost-circulation material (LCM) into the formation. The challenge, then, lies in determining the precise formulation and
placement of LCM needed to restore circulation. One of the most common and effective
tools for deploying, or spotting, LCM during
a drilling operation is a circulation sub. A circulation sub with an efficient, reliable, and
adaptable activation mechanism enables the
driller to effectively address lost circulation
while minimizing the rig time and expenses
incurred during an LCM-spotting operation.
Selecting and spotting LCM

When a driller anticipates approaching
a lost-circulation zone, they may choose to
integrate LCM into the drilling mud to seal
zones as they are encountered. However,
preventative measures are not always possible or practical. When lost circulation cannot
be prevented, drillers must focus on mitigation methods that stem losses on demand.
This generally requires pumping LCM
through the drillstring when downhole.
LCM is commonly divided into three
categories: fibrous, flaked, and granular.
Within those categories, LCM is further
qualified by particle size, from coarse to
fine. Conventional LCM includes inexpensive materials such as calcium carbonate,
paper, cottonseed hulls, nutshells, mica, and
cellophane. Proprietary LCM blends generally contain materials that conform to
the fracture to seal off pores, regardless
of changes in annular pressure.
Severe lost-circulation problems that do
not respond to treatments of a single LCM
can sometimes be remedied by spotting
a hydratable LCM pill, which is a small
quantity (200 bbl or less) of a concentrated mixture of multiple LCMs. An LCM
pill is typically held under gentle squeeze
pressure for a predetermined period to optimize fracture sealing. The LCM pill expands rapidly to fill and bridge fractures,
which enables drilling and cementing operations to resume in as little as 4 hours.
Many factors go into LCM selection,
and a single job may require the use of
multiple types of LCM. Therefore, it is advantageous to use a circulation sub that
can accommodate a range of LCM par46 Offshore November 2015 www.offshore-mag.com
ticle sizes and densities. The Weatherford

JetStream RFID circulation sub has a total
flow area of 6.5 sq in. (4,193 sq mm), which
gives operators a larger envelope to consider when determining which LCM to deploy.
Actuating the circulation sub

Circulation subs help combat instability in
several ways: by spotting LCM, improving
hole cleaning, and jetting BOPs. The JetStream sub is capable of performing all of
these functions in a single run. The sub uses
radio-frequency identification (RFID) tags to
communicate open and close commands to
the circulating valve through a signal received
by a built-in antenna. This enables unlimited,
selective actuation which creates the potential for operational flexibility and versatility.
For example, a driller could actuate the
tool at different times during drilling to
variously clear debris from the annulus, spot
LCM, and jet the wellheadall in a single
trip. By giving operators the freedom to actuate the sub on demand throughout the operation without tripping out, the JetStream
sub increases efficiency and reduces nonproductive time.
Within minutes of deploying an RFID tag,
the sub receives the programmed command
and opens or closes ports and diverters as
needed. This fast, on-demand actuation enables drillers to pump LCM into the annulus
and mitigate a lost-circulation event more
Alex Goodwin
Rienk Reitsma
Weatherford
quickly than with pulse activation methods.

RFID actuation has the additional advantage of increased annular velocity. Because
the inside diameter (ID) is not restricted by
mechanical actuators such as ball seats, the
sub maintains full through-bore flow and a
large total flow area throughout the operation. Furthermore, RFID actuation is not
pressure dependent, which enables drillers
to actuate the JetStream sub while maintaining hydrostatic pressure.
Case study
Precisely spotting LCM while closely
monitoring downhole pressure was a particular concern for an operator in the North
Sea. The operator planned to drill an oil and
gas well to a total depth of 4,282 m (14,050
ft). Based on previous experience drilling
reference wells in the area, they anticipated
a high risk of fluid loss at a depth of approximately 10,170 ft (3,100 m), where the
drillstring would encounter a soft, porous,
limestone formation with a natural fault and
a propensity for drilling-fluid seepage. Without an adequate lost-circulation solution in
place, the operator would likely experience
total fluid loss in this section and be forced
to shut in the well.
Given the depth of the formation and
the desire to maximize the efficiency of
the drilling operation, the operator needed
a loss-control solution that would enable
on-demand LCM distribution in precise
intervals of the section and timely delivery of the material into the annulus. They
determined that a circulation sub, which
increases circulation by opening a pathway from the toolstring to the annulus,
was the best tool to achieve these goals.
The operator investigated a number of
circulation subs available in the marketplace, including tools activated by mudpulse and ball-drop methods. Actuating a
tool via a pulse signal, which would take 1
hour or longer to deploy, would be too timeLCM is often composed of everyday materials, such as calcium carbonate, paper,
cottonseed hulls, nutshells, mica, and cellophane. When pumped downhole the LCM
particles flow into fractures and pores to seal
off lost-circulation zones. (Images courtesy
Weatherford)
consuming. Ball-drop-activated tools were not

an ideal option because ball seats restrict the
ID of the toolstring and impede flow.
The JetStream circulation sub avoids the
downsides of the pulse and ball-drop methods by using RFID actuation, which is not
pressure-dependent and enables full throughbore flow throughout the operation.
A series of tests conducted at a Weatherford test facility in the North Sea verified the
capability of the JetStream sub to provide highvelocity, turbulent flow. In the tests, 578- and
7-in. cementing darts were pumped through a
7-in. JetStream sub. Both sets of darts passed
through the sub without any damage to either
the darts or the sub.
The team decided to deploy a 5-in. JetStream sub as part of the drillstring while
drilling the 6-in. reservoir section of the
well. Weatherford modified the material and
connections of the sub to meet the operators
torque requirements, and developed custom
operational procedures in consultation with
the rig crew.
After making up the bottomhole assembly
(BHA) and testing all tools, the rig crew tripped
in the drilling assembly to 10,170 ft (3,100 m)
and began drilling the 6-in. section at a rate
of 4.9 to 16.4 ft/hr (1.5 to 5.0 m/hr). The driller
monitored fluid loss and signaled when the loss
rate reached 300 b/hr (48 cu m/hr). At this
point, the JetStream field specialist actuated
the tool into the open position. The driller then
deployed a mixed-composition LCM pill that included barite as a weighting agent.
The first pill reduced the rate to 195 b/hr
(31 cu m/hr); however, this was still higher
than desired. The driller responded by immediately deploying a second pill, which
contained a more complex mixture of proprietary LCMs. The second pill dropped the
loss rate slightly to 160 b/hr (25 cu m/hr).
This prompted the operator to prepare and
deploy a third pill that contained a higher
concentration of fracture sealant. With the
loss rate only slightly reduced, the driller
deployed two more pills in rapid succession. These final two pills brought the loss
rate down to an acceptable 50 b/hr (8 cu m/
hr), at which point the JetStream technician
deployed RFID tags to close the sub ports.
Throughout the entire drilling operation,
the team actuated the JetStream sub a total
of 16 times to spot 29 LCM pills. Precise spotting enabled the driller to maintain a loss rate
below 20 b/hr (3 cu m/hr) for most of the 14day operation, with loss rates as low as 13 b/
hr (2 cu m/hr) during the final days.
Before each activation of the sub, the team
recorded pressure readings at preset intervals. They then broke the connection and deployed RFID tags. To avoid creating a shock
to the formation, they slowed the pump rate
to 75 gal/min (17 cu m/hr) after the string
The JetStream sub recorded pump pressure and hydrostatic pressure throughout the operation.
(Courtesy Weatherford)
volume reached 75%. Once the RFID tags

reached the sub and communicated the
open command, the JetStream field specialist
checked the pressure to confirm that pressure and circulation had reached optimal levels per the established parameters.
Before deactivating the sub, the team once
again recorded pressure levels, broke the
connection, deployed RFID tags, and reduced
the pump rate to help prevent formation damage. After the RFID tags communicated the
close command, the specialist confirmed that
pressure had returned to initial levels.
The JetStream sub offers a contingency actuation method: pressure cycling. The team was
aware of and prepared to use this alternative
method if necessary; nevertheless, all actuations
were successfully achieved using RFID tags.
Throughout the operation, the sub recorded downhole events including drill pipe
pressure, hydraulic pressure inside the sub,
and temperature. The recorded data demonstrates the relatively stable hydrostatic pressure. Maintaining the pressure within a fairly
tight window was important to the success of
this operation, and would have been more difficult to achieve using mechanically actuated
or pressure-dependent circulating subs.
Additional applications
In addition to spotting LCM, the JetStream
sub also promotes well integrity by thoroughly and efficiently cleaning the wellbore
during and after drilling. This capability is
especially useful for drilling operations that
involve an underreamer.
Recently, an operator in Baku, Azerbaijan,
was seeking to minimize rig time by avoiding a dedicated cleanout trip after drilling and
reaming. Weatherford deployed the JetStream

sub and the RipTide RFID drilling reamer. Because both the JetStream sub and the RipTide
reamer are RFID actuated, the driller was able
to place them in close proximity to each other
and selectively actuate both tools without obstructing access to the lower BHA.
The client used the JetStream sub on two
consecutive trips. During the first run, the
team used the RipTide reamer to ream to
a TD of 16,512 ft (5,033 m). The JetStream
technician then actuated the sub to clean
out debris. During the second run, the team
used the JetStream sub to perform multiple
functions in the same trip: to pump in conditioning mud and to clean the wellbore while
pulling out of the hole.
By enabling multiple drilling operations
to be completed in a single trip, and by eliminating the need for a dedicated cleanout trip,
the JetStream sub and RipTide reamer saved
the client a minimum of two days in rig time
valued between $700,000 and $1,050,000.
Conclusion
Drilling through a lost-circulation zone is
a complex challenge that involves many variables, including formation porosity, hydrostatic pressure, and rate of penetration. As demonstrated on a recent job in the North Sea,
on-demand actuation of the JetStream RFID
circulation sub enables drillers to quickly and
precisely spot multiple LCM pills of various
types. RFID tags deliver open and close commands to the sub within minutes a process
that can be repeated an unlimited number of
times in a single trip. This capability increases
operational flexibility, opening up more options for drillers to remediate problems.
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Geospatial navigation and analysis service

increases well construction efficiency
Jon Skillings
Sergey Martakov
Andreas Hartmann
David Larsen
Baker Hughes
n complex geological formations, optimizing wellbore placement presents a

difficult challenge. Failure to mitigate
reservoir uncertainty often results in
suboptimal ultimate recovery and increased nonproductive time. A new geospatial navigation and analysis service increases well construction efficiency by reducing
seismic uncertainty and avoiding costly pilot
holes and unplanned geological side tracks.
The VisiTrak geospatial navigation and
analysis service makes it possible to define
reservoir architecture by mapping multiple
bed boundaries in real time, without the
need for pilot holes that are typically drilled
to evaluate the formation before drilling the
horizontal portion of a well. The service
combines extra-deep azimuthal resistivity
readings with full interpretation of complex
geological scenarios and advanced 3D visualization to provide a better understanding
of reservoir architecture. Using the service,
it is possible to detect remote boundaries
up to 30 m (100 ft) from the wellbore with
azimuthal sensitivity around the borehole.
This impressive depth of detection (DOD)
provides a reservoir-scale view, opening
new opportunities in real-time for wellbore
placement and reservoir mapping by taking reservoir navigation interpretation from
near-borehole to the seismic scale.
Geospatial analysis
The service provides a unique opportunity
for improved understanding of a reservoirs
architecture and its near-wellbore sand distribution, which are necessary for optimal placement of the wellbore in the most productive
zones. The service is based on electromagnetic (EM) measurements that have long been
used in logging-while-drilling (LWD) tools
with deep-reading capabilities. The measurements are enabled by a set of at least one transmitter and one receiver coil, where the transmitter coils are driven with alternate currents
to create an alternating magnetic field in the
rock formation. The magnetic field produces
Real-time inversion results presented in 3D. (All images courtesy Baker Hughes)
eddy currents in the conductive rock formation. These, in turn, produce a secondary
magnetic field that can be sensed at a receiver
coil. The detected signal is a function of the
passage of the primary signal through the formation and the particular coil geometry used.
The EDAR-based geospatial navigation
and analysis service uses two types of coil
arrangements housed in a two-module bottomhole assembly (BHA): (1) a coaxial
differential measurement; and (2) a crosscomponent absolute measurement. The
transmitter for the coaxial measurement is
housed in the shorter of the two modules.
The second, longer module contains the receivers for the coaxial and cross-component
measurements, and a transmitter for the
cross-component measurement. For the coaxial measurement, all coils are aligned with
the tool axis. For the cross-component measurement, a transmitter orthogonal to the
tool axis is used. The signal attenuation and
phase difference between the two receivers
are related to the resistivity of the surrounding medium. In a homogeneous medium,
symmetry prevents any signal reception
by the coaxial receiver. A remote boundary
introduces asymmetry in the eddy current
and a measurable signal in the receiver.
This measurement is azimuthally sensitive
because of the asymmetry.

The absence of a direct signal, as in the
coaxial measurement, is particularly useful
for this type of tool, because it achieves a
large DOD with relatively small transmitterreceiver distances. The short transmitter-receiver spacing positions the modules closer
to the bit, which enables earlier detection of
remote reservoir boundaries.
The modules operate at two frequencies20 and 50 KHzand there is no need
for an additional downhole generator to
power the system. For each frequency, longspace measurements of phase difference and
attenuation resistivities are provided, along
with directional signal strength measurements that provide a 360 reservoir-scale
view of the borehole. These measurements
provide inputs to the multi-component inversion modeling software, which supports
detection of multiple boundaries both above
and below the wellbore, at distances up to 30
m from the borehole.
Case study: Barents Sea

A recent project on the Norwegian continental shelf in the Barents Sea illustrates
the benefits of the geospatial and navigation
service described above. The field is located
85 km (53 mi) northwest of Hammerfest,
Geospatial navigation and analysis applications.
Geospatial navigation and analysis enabled an operator offshore Brazil to navigate 865 m (2,828 ft) of pay sand without a pilot hole.
and is the first oil-producing field in the Barents Sea. It is characterized by a large number of faults and a relative high structural
dip toward the flank of the structure. The
Kobbe formation is one of several proven
hydrocarbon reservoir units in the field. It
is of Middle Triassic age and is divided into
two main subgroups. The Upper Kobbe is
essentially a prograding deltaic system with
mouth bars and tidal influenced lobes. The
Lower Kobbe shifts into a more proximal,
heterogeneous fluvial setting where sand
bodies have limited lateral continuity.
Effective drainage of the field calls for
horizontal wells, in which the 8-in. reservoir section must be initiated in the overlaying Snadd shale. Wellbore architecture is
driven by the need to minimize both shale
exposure in the landing section and unwanted intra-shale drilling. Early detection of the
reservoir top and accurate mapping of the
reservoir sand architecture remote to the
wellbore are necessary to successfully navigate this type of complex reservoir.
The operator selected two horizontal gas
injectors as the best production solution.
These were the first two horizontal wells
drilled into the Kobbe formation. Because
of the reservoirs steep, fault-prone structure, ensuring optimal gas injection would
require penetrating all compartments. However, wellbore trajectory was restricted to
1.5-degree dogleg severity after the landing.
The geospatial navigation and analysis
service enabled detection of the top of the
reservoir at about 20 m (66 ft) true vertical
depth and 99 m (325 ft) measured depth
before entering the reservoir, ensuring an
optimal wellbore landing. Extra-deep measurements also helped reduce uncertainty
in fault detection, where related throw can

be estimated based on the displacement of
boundaries. The increased DOD, combined
with advanced multi-component inversionwhile-drilling techniques and real-time 3D
visualization of data and reservoir model,
helped ensure successful placement of the
well. Real-time mapping of the reservoir geometry helped optimize reservoir exposure.
The operator drilled approximately 1,000 m
(3,281 ft) with an average ROP of 28 m/hr (92
ft/hr) and achieved an 80% net-to-gross ratio.
Case study: Brazil
The Carapebus reservoir is a series of

gravity flow channel deposits on the continental slope margin of the Campos basin offshore Brazil. The reservoir is subdivided into
three facies types, with facies 1 being the only
productive sand type. A
n operator in the field wanted to drill a horizontal well through the sand. However, sand
distribution in the well landing area was unclear because of seismic interpretation limitations. The operator selected the geospatial
navigation and analysis service to navigate
while drilling the 8-in., 1,018-m (3,340-ft)
horizontal section.
The plan was to drill a 12-in. hole to the
top of the reservoir and set 958-in. casing.
The well inclination would then be built to
land at 90 degrees and maintain position in
the target sand before drilling into the lower
sand. Total depth was at the start of a deep
channel that cut across the well trajectory.
The minimum net sand interval was set at
300 m (984 ft), with a key performance indicator minimum of 460 m (1,509 ft).
Efficient drainage from the gravity flow
sandstone in the heavy oil field requires a
high level of sandstone contact. An azimuthal

LWD measurement deeper than the traditional 20 m was necessary to increase sandstone content in the horizontals by improving
the ability to steer within relatively thin sandstone bodies, or to identify and drill neighboring thicker sandstone bodies above or below
the well trajectory. The extra-deep, lookaround measurements helped bridge the gap
between traditional wellbore measurements
and seismic data. Integrating these data types
enabled interpretation of the reservoir structure and geometry to be refined, resulting in
better constrained reservoir models and an
improved field development strategy.
The well was drilled successfully without
a pilot hole. True vertical sand thickness
was 10-14 m (33-46 ft) at the heel of the well.
After crossing the crest into the lower channel, thickness increased to 10-25 m (33-82 ft).
Target sand thickness was mapped while following the upper surface of the sand, and the
well followed at a distance of 2-3 m (7-10 ft).
When faults and channel margins were
crossed, inversion modeling results were
used to target the correct reservoir sands.
A total net sand length of 865 m (2,838 ft) of
sand length was drilled, which equated to
a 75% net-to-gross ratio across the 1,019-m
(3,343.2-ft) horizontal section.
As these examples illustrate, bringing reservoir navigation interpretation from borehole
to seismic scale makes it possible to identify
multiple bed boundaries at five times the distance of conventional services to open new
opportunities for real-time wellbore placement. As a result, operators can make faster
drilling decisions to navigate to the most
productive zones, while eliminating time-consuming pilot holes.
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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 T A L L AT I O N
Petrobras P-66 FPSO, which will

produce from the Lula South sector
of the Lula field in the Santos basin
presalt. (Photo courtesy Petrobras)
Risk levels, anticipated payoff dictate

field development strategy
Comparison of Quad 204, Lula projects leads to key insights
ocating and proving oil reserves usually involves a mix of luck, hard science,
and good economic insight. In todays
increasingly uncertain business climate, decisions to invest in long-term
field development projects are more difficult
to make than ever before. Operators seeking new offshore opportunities are faced
with choosing between complex, high-risk
deepwater plays where payoffs can still be
substantial in terms of discovered volumes
and lower-risk plays with lower volume, thus
lower margin expansions of mature fields. In
many industries, a company has the luxury
of adapting its product mix to a chosen revenue model high price-low volume or low
price-high volume. This is not true in the oil
business.
Comparing the Santos basin offshore Brazil with the UK North Sea exemplifies such
tradeoffs within an industry that is continually forced to respond to abrupt changes in
the prices of its globally traded commodities.
Before 2007, Brazils total P1 and P2 (proven
and probable) reserves were 20 Bbbl. Deepwater presalt discoveries throughout the
past eight years have added 50 Bbbl of additional recoverable oil to that total. To put
that number in perspective, approximately
42 Bbbl have been recovered from the UK
Tom Ortiz
Halliburton
North Sea since 1964, with 24 Bbbl estimated to remain. Furthermore, a new field
is likely to be significantly smaller in the
mature North Sea than in Brazils comparatively unexplored frontier region. Brazils recent discoveries (Lula at 5-8 Bbbl and Libra
at 7.9-15 Bbbl) dwarf North Sea finds, where
Johan Sverdrup (at 3.3 Bbbl) was the largest
discovery since 1980 in one of the worlds
most heavily prospected regions.
While the North Sea might hold fewer
and smaller new discoveries, it has the advantage of substantial, although aging, infrastructure with which to bring oil and gas to
market. Brazilian operators, in contrast, are
faced with either having to deploy large arrays of expensive, remote, topsides production facilities while probably still leaving
valuable gas stranded or incurring the
expense of long-range, high-strength, deepwater export pipelines with which to reach
shore-based terminals.
The intersection of these two incongruities volumes and infrastructure with forward price expectations will dictate the ap-
proaches conceptual designers use to make

earlier, better decisions regarding maximizing field values for operators.
The goal here is to explore two projects
exhibiting similar conceptual designs, Lula
in Brazils Santos basin and Quad 204 in the
UK North Sea, to contrast ways in which
field development strategies can evolve under different economic conditions. These
two projects also represent different states
of technological advancement. Quad 204 is
an ongoing 3-billion ($4.5-billion) redevelopment of the Schiehallion and Loyal fields.
Schiehallion began producing in 1998, while
Lula came online in 2010. A common cost
database, indexed to 2014 US dollars is used
to provide an inflation- and technology-adjusted basis for obtaining financial estimates
for all models. Furthermore, all calculations
appearing hereafter are stated on a pre-tax
basis.
It is worth noting that field development
planning software applications, such as
those used in this study, can dramatically
increase the span of options considered by
planners and reduce the time necessary to
make early stage gate decisions. However,
even when supplied with the best available
input data, such applications cannot replace
experienced engineers and analysts; they

Copyright 2015 ABS Group of Companies, Inc. All rights reserved.
5,000 to 8,000
Average Oil Price ($/bbl)
50
Average Gas Price ($/Mcf)
Initial Well Production Rate (b/d)
20,000
Drainage Area (acre/well)
150
Reservoir Depth (from waterline) (ft)
22,600
Initial Phase Wells (Prod./W.Inj./G.Inj)
5/1/2
Initial Phase FPSO Oil Production Capacity (bbl/day)
100,000
Gas Export System
Flexible Pipeline to Shore
Oil Export System
Shuttle Tanker
20
18
NPV @ 10% ($billion)
Recoverable Reserves (MMbbl)
16
14
12
10
8
6
4
2
0
-2
Key base case parameters for a Lula-like field can be obtained from public
sources. [All charts courtesy Halliburton]
300
46.45
Initial Phase FPSO Oil Production Capacity (Mbbl/day)
100
46.40
Total Planned FPSO Oil Production Capacity (Mbbl/day)
1,120
Fraction of Oil Production Capacity Initial Phase (%)
8.9
Allocated Initial Phase FPSO Share of Total Wells
26
Number of Wells in Upscaled Model (Prod./W.Inj./G.Inj.)
15/3/6
Minimum Oil Price to Reach Positive NPV ($/bbl)
20
Total Cost of Fully Developed Field ($ billion)
46
Total Drilling Cost Per Well ($ million)
99
Brazils energy windfall is being seized by that nation as a pathway to economic development. However, it must overcome significant development risk to realize its goal of becoming a major oil
exporter. Six of the most important variables with respect to maximizing the net present value (NPV) of a field development project
include the following:
Recoverable reserves
Oil and gas price forecasts
Initial well production rate
Drainage area per well
Reservoir depth
Export options.
To understand the effects these variables could have on the design of a field similar to Lula, consider the following base case scenario. To more easily compare a Lula-like field concept and a singleFPSO Quad 204-like concept, recoverable reserves for Lula were
initially scaled down in this analysis by the number of FPSOs (currently eight) ordered by the operators. Final financial model results
were then scaled up to represent field-level values.
NPV is sensitive to average oil price in this project. Recoverable
reserves were assumed to be at the lower end (5 MMbbl) range of
estimates divided by eight in the model to represent production
from a single FPSO and all other base case parameters held fixed.
Total project cost ($billion)
Total Wells Expected at Lula
Maximizing net present value
30
40
50
60
70
80
90
100
A Lula-type single FPSO concept could remain profitable even at low oil
prices.
can only provide decision support. As such, all results presented below should be treated as purely qualitative in nature. Furthermore,
the best of plans serve nothing if executed poorly; so, planning figures are no guarantee of future performance. Determining early on
the key parameters to help ensure success is, however, dramatically
important.
20
Average oil price ($/bbl)
Number of Wells Producing to Initial Phase FPSO
Upscaling the model by the total number of future wells allows total field
cost to be estimated.
10
46.35
46.30
46.25
46.20
46.15
46.10
46.05
46.00
45.95
15,000 16,000 17,000 18,000 19,000 20,000 21,000 22,000 23,000 24,000
Initial well production rate (bbl/day)

Variation of total project cost with respect to initial well production rate for
an offshore Brazil field.
A discount rate of 10% was applied.

The model predicts that this development would become marginally profitableon a pre-tax basisat an average price of approximately $13/bbl. Reported lifting cost estimates of approximately
$14/bbl ($5/bbl development cost plus $9/bbl operating expense)
were made for the Lula field in 2014.
The total development of Lula is expected to cost between $50 and
$100 billion and encompass 300 wells. The first Lula well cost $240
million, with subsequent wells costing approximately $60 million
each. To extrapolate these results and estimate total field development costs, one can calculate the fraction of expected future Lula production capacity that is represented by the one FPSO and eight wells
used in this model, and upscale the model to predict total field cost.
These results show that the breakeven oil price (i.e., 0 NPV at
a 10% discount rate) is expected to rise 54% from $13/bbl to $20/
bbl as additional wells are brought online. The estimated per-well
expense of $99 million is within the range of $60 to $240 million
reported for the initial phase wells at Lula. The total calculated field
development cost of $46 billion is within 8% of the low end of Lulas
estimated range.
With this baseline established, one can perform additional sensitivity analyses around the key field development parameters identified.
Smaller well spacing results in a suggested conceptual design containing fewer drill centers and/or more compact gathering systems,
which steadily reduces cost, the former more abruptly than the latter.
Processing facilities and pipeline size expansions are changed by
the field modeling engine in discrete increments, which results in a
stepwise increase to cost. Revenue increases are essentially linear,
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NPV @ 10% ($billion)
75
70
65
60
55
50
18,600 19,600 20,600 21,600 22,600 23,600 24,600 25,600 26,600 27,600
Reservoir depth from waterline (ft)

Variation of project NPV with respect to recoverable reserve volume for an
offshore Brazil field.
which leads to the NPV curve being smoother in shape.

Cost and profitability are almost directly proportional to the depth
of wells drilled. This is a function of the fact that drilling is a particularly dominant expense in these very deep, subsalt fields. The total
project cost increases along with the reservoir depth.
A larger reservoir represents additional revenue and, all other
things being equal, does not increase the cost of the project. In reality, geological complications that are not being modeled in the present study could significantly alter the project cost structure. The
NPV declines as a result.
In a large field of this kind with high rate wells, the most important driver of costs will be reservoir (and, therefore, well) depth.
Nevertheless, because the reserve base is so large, and because
each well is so productive, there is a strong financial incentive to
drill a large number of wells; marginal production is expected to
outpace marginal drilling cost over a wide well number range. This
expectation is reflected in the ambitious (300 well) scope of Lulas
current development plan. It will still, however, be particularly important to control costs and to reduce the uncertainty of reaching a
deep, subsalt target.
Attention is now turned toward the UK, a nation justifiably concerned about the future of its oil industry. The UK has recently created a new regulatory agency charged with maximizing revenue
from its remaining reserves. Quad 204 is a redevelopment of the
Schiehallion and Loyal fields.
A number of assumptions had to be incorporated when developing the base case model for a Quad 204-like field. These included
production and injection cash flows from all pre-existing and projected infill Schiehallion and Loyal wells, but excluded the associated drilling expense for the pre-existing wells. Therefore, the model
fairly represents the incremental cash flows from an infill drilling
project, such as Quad 204.
The total project cost for Quad 204 is estimated to be approximately 3 billion ($4.5 billion). The base case model predicts as total
project cost of $6.8 billion, which, at the time of this writing, converts to 4.4 billion, an overestimate of 47%. However, 2014 was a
volatile year for the pound/dollar exchange rate. The cost data used
in this study includes values collected at various times during 2014.
The model projects infield drilling well costs to be $80 million
each. Conventional North Sea wells are estimated to cost between
$30 and $75 million, while deeper water wells west of Shetlands (the
area where Quad 204 is located) are estimated to cost as much as
$100 million each.
The effect of well spacing here is essentially being modeled as
an increase in gathering pipeline length, which has a nearly linear
effect on both project cost and NPV.
Over the typical range of well production rates for a field of this
type, there is little effect on project cost all other things being
equal. There is a plateau in NPV, shown in the chart displaying initial well production rates, and it is clear that, above an initial rate
equal to the per-well oil processing capacity of the FPSO, the project
becomes facility constrained (as one would expect). Nevertheless, it
is equally important to maintain sufficient production to make use of
all available capacity and maximize the return on investment.
In the relatively shallow waters of the UK North Sea, reservoir
depth has a much smaller effect on project cost and profitability than
seen above in the ultra-deepwater offshore Brazil example. Uncertainty in terms of the size of the recoverable reserve base will have
a dramatic impact on the predicted profitability of a UK North Sea
project.
Starting with a low reserve base in a mature province, an increase
in recoverable reserves can be a critical factor when deciding to
sanction a UK North Sea development project. Taking risks on
new methods to bring more oil into the economically recoverable
window can, therefore, be a justifiable and valuable consideration.
Reducing uncertainty in terms of well production rates suggests
investments in advanced drilling and completion technologies that
might not otherwise be considered cost-effective. Likewise, aggressive optimization of workover and artificial lifting programs will also
be important.
Future challenges
The challenges of every project are unique. Moreover, the results

discussed do not account for differences in tax regimes or other less
tangible regulatory differences between Brazil and the UK factors that can also change project economics irrespective of technical
considerations. It is, however, possible to make a few general comments regarding planning for developments in these two regions
with markedly different characteristics.
UK North Sea production is rate-constrained. Smaller, less productive reservoirs must be managed more carefully, and well completions and lifting systems must be designed to maximize deliverability. Existing product export infrastructure can be leveraged, but
that is not expected to significantly change the economics of new
UK North Sea projects. Identifying new ways to book additional
reserves through the application of advanced technology is an
important pathway to higher return on investment.
The margin for error in a large UK North Sea project is small, with
the discovery of new reserves becoming increasingly difficult and
infrequent. Unforeseen project delays and price volatility are common risk factors that should be expected by operators. Therefore, it
stands to reason that factors which can be controlled, chief among
them being operational efficiency and proactive maintenance, must
be continuously monitored and improved.
In contrast, developments of Brazils presalt reservoirs are likely
to be facility-constrained. The cost, rather than the deliverability
at least at the outset of wells, including investments in advanced
presalt drilling technology and the availability of suitable rigs, will
be a key measure of success. Furthermore, given the remoteness
of these discoveries, procurement of sufficient production, storage,
and export capacity should be priorities for field planners there.
Investment in permanent export infrastructure is a long-term,
capital intensive endeavor. The reserves of the Santos basin appear
to be plentiful; and, with very high initial well rates being observed
in fields such as Lula, operators should take the opportunity to make
calculated, forward-looking investments that will provide flexible capacity for decades to come. Hindsight allows the luxury of knowing
that, in the future, fields must produce much longer and more economically than ever anticipated in the days when older basins, such
as the UK North Sea, were being developed.
P R O D U C T I O N O P E R AT I O N S
Study assesses challenges of extending

spars and semis into ultra-deepwater
Analysis suggests that riser integrity will be key challenge
he offshore industry is currently capable of developing deepwater oil and

gas fields, and installing subsea infrastructure and floating platforms in
the US Gulf of Mexico (GoM) down
to 2,500 m (8,200 ft) water depths. Beyond
1,600 m (5,250 ft), developments have been
limited to semisubmersibles, truss spars,
and tanker-based floating production storage and offloading (FPSO) platforms with
subsea developments.
Spar and semisubmersible platforms have
been used extensively in the GoM as hosts
for large deepwater developments. Spars
have progressed from 600 m to 2,600 m
(1,970 ft to 8,530 ft) water depths since 1995,
and semisubmersibles from 450 m to 2,500
m (1,480 ft to 8,200 ft) since 1985. Industry
has now set its sights on producing in water
depths down to 4,500 m (14,760 ft).
Hulls have grown to accommodate increasingly larger topsides, riser, and mooring
payloads. Extending these platforms to 4,500
m represents an almost 80% increase in water depths. The main challenges relate to the
technical feasibility and installation of risers
and mooring systems and their impact on the
size and global performance of the hulls.
Recently, Granherne conducted a study on
the impact of extending semisub and truss
spar designs to 4,500 m water depths. The
study involved using DNV GLs Sesam DeepC
Richard B. DSouza
Rahul Subramanian
Granherne, a KBR Company

Rajiv Aggarwal
Independent consultant
suite of software to conduct fully coupled
nonlinear time domain global performance
analyses for both semisub and truss spar designs, for 2,500 m and 4,500 m water depths.
In brief, the results indicate that it is feasible
to extend conventional truss spar and semisub
platforms out to 4,500 m water depths.
Study parameters
Today, there are ten platforms installed in
the GoM in water depths greater than 1,500
m (4,920 ft), all with subsea wells.
For subsea developments, steel catenary
risers (SCRs) are typically utilized for production, water injection, gas lift, and export.
Their designs vary in diameter and thickness
and are sensitive to hull motions. The feasibility of SCRs with semisub hulls has been
a challenge in some cases, and operational
and design measures have been adopted to
meet strength and fatigue requirements near
touch down zone (TDZ). Some operational
and local design measures included distribution of fatigue damage by shifting vessel posi-
Development scenarios for semisub and spar platforms in 2,500 m and 4,500 m (Courtesy Granherne).
tion; use of clump weights or heavy weight

coating above TDZ; and pipe-in-pipe designs.
Deep draft semisub hull designs were developed to reduce vertical motions at SCR
porches. The deeper hull semisub is susceptible to vortex induced motion (VIM) in eddy
currents, impacting fatigue performance of
risers and mooring lines.
This study contrasted spar and semisub
platform global performance in 2,500 m and
4,500 m water depths. The production scenarios considered in this study were for large
topsides payloads (greater than 22,000 metric
tons, or 25,250 tons). Truss spar designs for
Tahiti and Holstein fields are the most relevant to define the current qualified size, technologies, and construction limits. In addition,
Aasta Hansteen, the first spar for the harsh
North Sea region, provides upper limits for
hull constructability. Among the semisub
designs, the Atlantis (designed pre-Katrina),
and Jack/St. Malo (JSM) facilities, designed
for post-Katrina metocean criteria for large
payloads, are the suitable candidates.
Field development scenarios

Since this study focused on GoM developments, a review of likely water depths in the
frontier region was conducted to locate the
platforms. The review showed that very deepwater depths of 4,000 m and deeper would
fall in the western and transition metocean
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zones. The Sigsbee Deep region, located in

the southwestern quadrant, is the deepest region of the GoM. The Sigsbee Abyssal Plain
is a deep and flat portion of the Gulf bottom.
The maximum depths range from 3,750 m
(12,300 ft) to 4,400 m (14,430 ft). This region
is south of the locations of the Atlantis and
JSM semisubs. Post-Katrina transition zone
metocean criteria were used for this study.
A major production hub platform designed to support a large number of subsea
wells tied back by production and water injection SCRs is a likely development scenario in frontier regions of GoM, similar to several existing developments in water depths
greater than 1,500 m.
The following development components
apply for both semisub and spar-based development scenarios:
Drilling and well intervention of subsea
wells at distance from the platform undertaken by a MODU
Topsides functions including process
equipment for large production throughput, water injection, subsea boosting,
subsea flow assurance, utilities, and oil
and gas export via pipelines over long
distance
Chain-polyester-chain mooring system
in a spread pattern
SCRs for production, water injection
and export lines.
Development basis
Parameter
Variation in Field Development Basis with Water Depth
Water Depth
2,500 m
4,500 m
Production Rate
150,000 bopd
200,000 bopd
Reservoir Depth
8,200 m
8,200 m
Topside Payload
22,700 MT
29,500 MT
Number of Well Clusters

Number of SCRs
SCRs - Outer Diameter (OD)
15 (8-Production; 4-WI; 1 Gas

Export; 1 Oil Export; 1 Gas Lift)
15 (8-Production; 4-WI; 1 Gas

Export; 1 Oil Export; 1 Gas Lift)
P - 8.625; WI - 10.75
OE - 16; GE - 12.75; GL - 8.625
P - 8.625; WI - 10.75
OE - 16; GE - 12.75; GL - 8.625
Design Pressure - Production, WI, Gas Lift
69 MPa (10,000 psi)
69 MPa (10,000 psi)
Design Pressure - Export
20.7 MPa (3,000 psi)
20.7 MPa (3,000 psi)
Design constraints
Parameter
Safety Category B
Safety Category S
Return Period
100-year
1,000-year
Heave Natural Period, Tn
> 20 sec
Minimum Air Gap
Maximum Offset - Intact

Maximum Offset - One Line Damaged
For the purposes of this study, oil production rates of 150,000 b/d and 200,000 b/d
were assumed for 2,500 m and 4,500 m water
depth, respectively. These rates are similar
to existing large platforms in the Gulf. Four
or more clusters of production and injection
wells were assumed with flowline loops for
pigging operations from the platform.
For hull sizing and global performance
assessment, the deck size, payload, and projected area estimates based on the design basis varied with water depth and hull type. The
deck plan area and projected wind areas for
2,500 m water depth increased by 15% for the
4,500 m water depth designs. The semisub
based design could be a box deck with twolevel truss modules or an integrated two-level
truss deck, whereas, the truss spar design
would require a three-level truss deck.
Global performance
The hull sizes, weights, displacements, and
preliminary estimates of global performance
and stability were derived from Granhernes
benchmarked sizing tools. The past work for
platforms in 3,000-m water depth showed that
time domain coupled global performance analysis was required. This includes interaction of
mass and stiffness of moorings and risers to
capture platform response, and its impact on
0 m or greater
5% WD
12% WD
7% WD
15% WD
8 deg (Intact)
12 deg
Maximum Horz. Acc. @ Upper Deck
0.35 g
0.45 g
Maximum Vert. Acc. @ Upper Deck
0.23 g
1.77 m/sec
2,16 m/sec
0.09 g
Max. Combined Pitch and Roll
Maximum Heave Velocity @ SCR Porch
Design basis
1.5 m
Platform Motions
Maximum Heave Acc. @ SCR Porch
the designs of moorings and risers. Therefore,

fully coupled nonlinear time domain global
performance analyses were conducted using
DNV GLs Sesam DeepC suite of software for
both semisub and truss spar designs for 2,500
m and 4,500 m water depths.
The DeepC analysis model was generated
using the vessel hydrodynamic model from
HydroD which considered the floating hull
with topsides as a rigid unit. The mooring
lines and SCRs were modeled with multiple
elements in each line and riser, to reasonably
represent their mass distribution and stiffness properties. The analysis was performed
for random seastates generated for design
and survival levels. The focus of the analysis
is to estimate platform global motions, maximum and minimum tensions in mooring lines
and risers, and bending moment variations in
SCR at seabed.
Semisubmersible designs
With the semisub platform designs, the
two-level deck structure is built in modules,
which are placed on the box deck that is fabricated with the hull. The bottom of steel (BOS)
elevation of box deck is kept above the crest
elevation of the 100-year return period (RP)
seastate. A negative airgap is allowed for the
1,000-year RP seastate. The process, quarters

and utility modules are placed on the box
deck. The mooring winches are located on top
of the deck box above the columns.
The operating displacement for the Semi4500 is about 160,000 metric tons (mt). Major contributors to the displacement are hull
lightweight (40%), topsides, risers and umbilicals, and water ballast (about 20% each).
The Semi-2500, has a higher percentage of
the total displacement as water ballast and
a lower percentage of risers and umbilicals.
The heave and pitch natural periods for
Semi-4500 are 23.4 sec and 38 sec, respectively. Dimensions of columns and pontoons
and draft can be varied to obtain different
combinations with improved global performance.
A conventional chain-polyester-chain mooring design anchored by suction anchors is the
basis for 4,500 m water depth. The number
and size of mooring lines are related to the limits of platform offset in the design basis. Lower
platform offset requires larger diameter polyester mooring lines with high pretension.
Frequency domain analysis using MIMOSA
was conducted to verify platform offsets and
mooring line tensions for compliance with the
design basis. The design consisting of four
groups of five lines with 268-mm polyester

rope and 162-mm steel chain was deemed to
be satisfactory.
Mooring line tensions are the dynamic
maximum at top and dynamic minimum at
bottom. The line tensions in polyester segments on windward side are estimated as
0.40 MBL and 0.53 MBL in design and survival level analysis respectively.
The results from the study showed that
the increase in maximum tension in SCRs
from Semi-2500 to Semi-4500 designs range
from 1.8 to 2.3, which would require use of
buoyancy modules over long length of riser
such as used with the steel lazy wave riser.
The maximum utilization ratios in SCRs at
hang-off for Semi-4500 are estimated to be
1.5 to 2 times of the designs for Semi-2500.
The results show that semisub designs are
feasible with proven polyester mooring and
riser system technologies.
Comparison
with existing designs
The field development scheme is the same
as Atlantis and JSM. Both of these facilities
are located in the transition metocean zone.
Jack/St. Malo is the largest semisub in the
ultra-deepwater GoM, and has been designed
to the new post-Katrina metocean criteria. The
Semi-4500 displacement estimate is about 10%
greater than the JSM semisub, from larger
hull lightweight and greater riser payload.
The displacement estimates for Semi-2500 are
about 36% higher than the Atlantis semisub designed to pre-Katrina metocean loading.
The overall hull dimensions for Semi-4500
are similar to the JSM semisub. Thus, the
JSM execution plan with fabrication of hull
in Far East yards, and transportation of hull
by heavy transport vessel (HTV) to GoM,
and integration at quayside would apply to
the Semi-4500 design. Installation of longer
mooring lines and anchors, SCRs, and umbilicals would take longer than with JSM but
since they are pre-installed, impact on overall schedule would be minimal.
Spar designs
With the truss spar designs, the mooring
fairleads are shown at hard tank and SCRs are
supported at the keel, i.e., at the soft tank level,
with pull tubes in the well bay. The three-level
deck structure is an open deck design using
vertical trusses. The elevation of BOS of lower
deck (cellar deck) is kept above the wave crest
elevation for survival seastate. The airgap estimated from mean sea level (MSL) to BOS of
lower deck is 23 m, and spar hull top is 17 m
above MSL with 6 m deck stools.
Both truss spar configurations have two
heave plates. The hull lightship weights differ by about 10%. The hull diameter, draft,
and freeboard dimensions variation is mod64 Offshore November 2015 www.offshore-mag.com
erate. The controlling design constraints in

truss spar sizing for GoM are: maximum
pitch angle and minimum air gap. These are
obtained by placing solid ballast in the soft
tank to lower the center of gravity (CG) of
the truss spar design, which reduces pitch
and heave, and increases airgap estimates.
The conventional chain-polyester-chain
mooring design with chain at top and bottom
and anchored by suction piles is the basis for
Spar-4,500. A 3x5 grouped configuration with
259-mm (10-in.) polyester rope and 147-mm
(5.78-in.) steel chain at top and bottom is required to meet offset criteria.
The in-place operating displacement for
Spar-4500 is 147,640 metric tons (162,745
tons) with free flooded water in soft tank.
Contributors to the displacement are topsides, risers and umbilicals, free flooded
water in soft tank, and hull lightweight, that
vary from 19% to 24% of total displacement.
The heave and pitch natural periods are 27
sec and 45.5 sec respectively.
Due to very low vertical heave velocity
and acceleration at the SCR connection with
hull, the design level minimum tensions in
SCRs are larger and about 28% less than the
estimates for dynamically sensitive SCR designs for Semi-4500. The minimum tension
at bottom of SCRs would be lower for the
survival seastate. Thus, the conventional
SCR design is feasible for a truss spar and
would not require buoyancy modules to reduce tension.
Comparison
with existing designs
The field development scheme employed
for the study was similar to the Tahiti and
Lucius developments in the transition metocean zone. The Holstein spar is the longest
and heaviest truss spar designed to support
dry trees with RAM tensioners, but it was
designed to pre-Katrina metocean criteria.
The largest truss spar under construction
is for the Aasta Hansteen development in
the North Sea, with subsea tiebacks and includes condensate storage in hull.
The Spar-2500 and Spar-4500 hull designs
require two heave plates as do most of the
recent wet tree truss spars in GoM. The
overall hull lengths are 182 m and 184 m
(597 ft and 603 ft), respectively, for the two
designs, which are longer than Tahiti (169 m)
and shorter than Holstein (227 m) and Aasta
Hansteen (193 m). The hull lightship weight
and solid ballast for Spar-2500 is similar to
Holstein. The hull lightship weight for Spar4500 at about 35,000 mt is between Holstein
(32,000 mt) and Aasta Hansteen (41,000 mt).
The Aasta Hansteen spar has undergone
significant qualification work, since it is the
first truss spar in the North Sea in harsh metocean conditions. The displacement of Spar-
4500 with flooded soft tank is 147,640 metric

tons, and is similar to the Aasta Hansteen.
Conclusion
The offshore industry is acquiring leases in
frontier regions in up to 4,500 m water depths.
Presently, drill rigs are capable of drilling wells
in these depths, but proven capability of floating
production platforms is only 2,500 m. This study
investigated the feasibility of extending wet tree
semisubmersible and truss spar production platforms to 4,500 m water depths, an 80% increase
over current capability. The work resulted in the
following conclusions, detailed below.
Truss spar and semisub hull displacements
to support topsides, riser, and mooring payloads increase by 20% to 30% in extending water depths from 2,500 m to 4,500 m, but hull
configurations and weights are within industry capability to design, fabricate, transport,
and integrate/commission topsides.
Fully coupled non-linear time domain analysis with all risers and mooring lines modeled
conducted for conventional four column semisub and truss spar in 2,500 m and 4,500 m
showed that current analysis tools can predict
global performance in 4,500 m. The impact
on global motions in the deeper water depth
is nominal. However, there should be a rigorous industry effort to calibrate analytical tools
via model tests be conducted to increase confidence in global performance predictions.
Conventional chain-polyester-chain spread
moorings with suction piles can be extended
to enable spar and semisub station keeping in
4,500 m depths. A nominal increase in number of lines and line size is required for offset
control, and these are within industry capability to manufacture. Installation of mooring lines in 4,500 m is feasible with current
heavy-lift crane vessels. Additional qualification work is required for suction pile lowering, suction pumps, and ROVs.
The key challenges in extending floating platforms to 4,500 m are the risers. SCRs were used
as the basis and it was concluded that these cannot be extended to 4,500 m because of excessive
tension for about 20% suspended length below
hang-off point. Bending at TDZ is not an issue,
nor is fatigue expected to be an issue. Solutions
include adding buoyancy modules such as in a
lazy wave or alternative configurations such as
tower risers or buoyant tethered risers, which
are proven to 2,500 m water depths.
Based on this preliminary investigation,
there do not appear to be any show-stoppers
in extending conventional truss spar and semisub platforms to 4,500 m water depths. More
rigorous sizing and analytical work is recommended before making definitive conclusions.
Qualification work is required regarding certain mooring and riser system components,
and detailed mooring and riser installation assessment is recommended.
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SUBSEA
Joint industry project seeks

to advance subsea standardization
Initial effort will focus
on reducing subsea
processing costs
Bjrn Sgrd
Tore Irgens Kuhnle
Bente Leinum
DNV GL Oil & Gas
ubsea production systems are an integral part of FPSO and other floaterbased field developments, as well as
for new tie-ins to old installations.
Over the past 15 years, subsea
technology has moved from subsea wells,
manifolds, flowlines, and templates, to include subsea boosting, separation, and now
compression.
In the near future, deepwater wells will
require more complex subsea equipment.
Looking further ahead, the industry expects
to see automated production entirely located
on the seabed, piping oil and gas directly to
shore through the subsea factory concept.
The recent downturn in the oil and gas
market has led to a greater focus on cost
efficiency. Though cost has always been an
integral part of offshore field development,
falling oil prices have forced the subsea industry to reassess what counts as best practice in the manufacturing and employment
of subsea equipment.
To this end, the industry has begun a series of joint industry projects (JIPs), led by
DNV GL, to set guidelines and recommended practices in five areas: re-engineering,
workovers, component catalogues, compliance with established standards, and standardized documentation. A sixth JIP, dealing
with specifications for forgings, has already
resulted in a new recommended practice.
JIP goals
The overall aim is to cut cost, lead-time,

and uncertainty, and thereby help the subsea industry stay competitive. The need is
obvious when a single project may have as
many as 80,000 associated documents.
In the future, the industry expects to see automated

production entirely located on the seabed, through the
subsea factory concept. (Images courtesy DNV GL)
The standardization discussion began

three years ago, when it centered on making identical parts. It quickly became clear
that a unified tool box of products and equipment did not go far enough to harmonize
processes and procedures, and could even
cause more inefficiencies and fragmentation. The core challenge lies in the fact that
oil companies have different technical specification requirements, and suppliers have
tailored their subsea equipment according
to what the end customer specified. As a result, similar equipment, doing similar jobs,
may for example be made out of different
steel depending on the end customer.
This bespoke style of manufacturing
makes for elevated costs and extended lead
times. Standardizing is about creating predictability throughout the supply chain, not
necessarily identical components. The automotive sector is a clear example of standardization in practice. Though manufacturers
make different versions of a standard car,
the factory line, materials, processes, and
procedures are essentially the same.
The Subsea Documentation JIP aims to
come up with a recommended practice

which provides a minimum set of documentation requirements for all major subsea
components. Increased predictability will
improve industry practices, and this will
help operators, contractors, and suppliers
better understand and manage their subsea
documentation. In turn, they will all benefit
from reduced lead-time; reduced documentation requirements and replications; enhanced experience transfer; transparency;
and improved quality. However, what is really important is that various players in the
industry are loyal to the agreed guidelines.
A lack of trust
The oil and gas industry is still struggling to grasp the principle of standardization, and at the same time there is a lack of
governance and a degree of distrust in the
industry that impedes the process of standardization.
Joint innovation and smart standardization are critical to strip back complexity and
in turn, lower costs and enable rapid and
efficient technology implementation. The
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SUBSEA
lators and advisory professionals to come

together to develop solutions to complex
subsea challenges quickly and effectively.
Standardization will be important to secure
a strong and coordinated mutual approach
in order to achieve the goal of more profitable subsea developments.
The key to achieving this is to create
predictability throughout the entire supply
chain to allow optimization at every step.
Smarter standardization will still allow for
customization through configuration of standard modules, while also streamlining work
processes involved in designing, manufacturing, and operating technology. This will
enhance quality and drive a profitable and
reliable subsea future.
The authors
Subsea production systems are expected to become an increasingly important part of floater-based
field developments.
industry needs to get the balance right on

when to trust and when to interact. Trust
needs to be built through improved governance with all parties pulling together in the
right direction.
When an operator orders a new piece of
equipment, the level of interaction required
between the operator, the regulator, the certifier/verifier, and the manufacturer adds to
the scope and adds layers of complexity to
the process without adding value. The industry needs to arrive at a new equilibrium
where the scope is reduced, allowing the industry to operate at a reasonable margin to
be sustainable and have a healthy business.
Costs have increased mainly due to inefficiencies and scope creep. Unproductive
activities come, as mentioned, from unnecessarily complex specifications. At the same
time, there is too much scrutiny in design, engineering and testing, and not enough trust
that each party is doing their job properly.
As a result, operators have become overly
concerned with the basic components that
make up the equipment, rather than concentrating on more fruitful areas, such as
optimizing on a system level. This issue has
now been partly tackled with the publication
of the Recommended Practice (RP) for Steel
Forgings for Subsea Applications, resulting
from a two-year JIP.
Looking to the future
Subsea processing is now a real alternative to conventional technologies, but there

are currently limits to its widespread adoption and hence on its potentially transformative effect on the industry.
For brownfield projects, the various technologies may be used alone or in combina68 Offshore November 2015 www.offshore-mag.com
tion with other technologies. In contrast, an

all-subsea solution has more limited applicability for greenfield projects. The most likely
near future all-subsea greenfield applications
are oil and gas field developments in mature
geographies. Gas discoveries that only a few
years ago were assumed to be developed
with subsea compression to onshore LNG
liquefaction are now instead moving in the
direction of floating liquefaction, FLNG. For
deepwater applications, all-subsea solutions
need to overcome shortfalls related to power, complexity, and availability.
A DNV GL JIP is being initiated to work
toward standardization of subsea processing. The first step will be to define a functional description and a specific plan for
standardization for subsea pumping. Phase
2 will continue with subsea separation and
injection and subsea compression. The outcome of the JIP will be a guideline and a
DNV GL Recommended Practice for industry use.
Whats next
Major JIPs, such as DNV GLs work on

subsea standardization, stand to shake up
relationships at every level of the offshore
value chain. The growing complexity of
subsea systems is starting to have an everincreasing impact on an operators ability
to effectively monitor, inspect, and repair
affected systems. Moreover, the challenges
of designing and employing original equipment in even deeper water will only further
restrict an operators ability to respond to
fatigue and failure efficiently.
Having a clear focus on collaboration
and innovation gives the industry a neutral
ground for businesses, and will enable regu-
Tore Irgens Kuhnle, M.Sc., is

Business Development Leader
for SURF in DNV GL Oil & Gas
in Norway. He has ten years of
experience within different areas
of the oil and gas industry, lately
as principal researcher within
subsea processing. Kuhnle
started as consultant within
business risk management,
working with field development investment decisions
and due diligence. Later, he moved to finance as
head of risk for more than ten hedge funds during the
financial crisis. He then became investment manager
for hedge funds, working with both investments in listed
companies as well as private equity. Kuhnle has been
director of the board of an oil company and a number
of technology companies.
Bjrn Sgrd, M.Sc., is Segment
Director Subsea and Floaters
with DNV GL Oil & Gas. He
has been in the subsea industry
since 1991, and has played a
key role in the research, design,
and engineering management
for several large subsea EPC
projects. Sgrd is currently
Segment Director for Subsea and
Floaters with a global responsibility to coordinate across
geo-divisions and technology units within DNV GL.
Throughout his career, he has worked to develop and
improve international standards for the subsea industry.
Bente Helen Leinum, M.Sc.,
is Senior Principal ConsultantBusiness Framework and
Management Advisory for DNV
GL, with a main focus on the
operation of subsea systems. She
has extensive experience in oil
and gas industry research and
development, with a specialty
in the field of failure analysesmaterials technology and project management.
Her responsibilities include project management and
participation, RBI-analysis, pipeline integrity management projects, verification projects, fabrication control,
field inspection, laboratory work and experiments.
I T A LY
In situ data assist platform

life extension studies
Michele Francioni
RINA Services
etermining the potential for field life extension and platform

re-use involves modeling and calculations based on a wide
range of factors. These include meteo-marine data collected
onsite over the period of service and the performance of the
offshore structure in situ.
Building and installing a new platform, particularly in frontier areas, must draw on assumed environmental data, sometimes to withstand a 100-year storm, depending on the location. With a life extension exercise, however, there is a record of surrounding metocean
conditions going back perhaps 20 years, along with the residual
condition of the platform. So effectively, planning for re-use or life
extension means measuring what you have and the maximum event
that the structure (as-is) can withstand in the future.
RINA Services has developed a system approach for this task that
has been applied by operators seeking to extend the lives of existing
platforms offshore Turkmenistan; to re-use a Gulf of Mexico platform offshore Congo; and to extend the life of a platform onsite in
the Mediterranean Sea by 20 years.
Assessment process
The starting point is to create an adequate picture of the platform in its current state that captures the design strength and the
impact over time of corrosion and fatigue. These factors must be
set against the site-specific conditions and new operational requirements, which may not be the same as those for which the structure
was originally designed. RINA then applies its method to determine
the risk of structural failure that could lead to unacceptable consequences. These are the critical parts of the process, determining the
acceptable level of risk, then establishing the safety target.
Each reassessment begins with data gathering and an as-is survey
above and below the water line. All data and survey information is
used to build the platform model and the condition of the structure.
However, in order to determine the impact of loads the platform may
face in future, it is important to employ current methods of environmental calculations described in the updated design codes rather than
the original design loads, and this may produce surprises.
There is also a strong argument for using meteo-marine
data collected on site during the life of the platform
for the basis of the new loads if the platform is to
continue on the same site. RINA applied this approach in the life extension of the Edison-operated
Vega A platform offshore southern Italy. Analysis of
the data revealed that loads in service were 15% below the design loads, particularly for extreme wave
loading, which has a major impact on the expected life
ahead for the platform.
For existing platforms it is feasible to have predicted
limited individual component failures. Individual components of older offshore structures may not comply with
current code safety factors. But as the existing platform
in service is its own full-scale model, projected yielding
or failure of individual components is permissible, proScreen shot of Nen platform modeling.
(Image courtesy RINA Services)
The Vega platform, operated by Edison, is located 12 mi (19 km) south of

Sicily, Italy. (Photo courtesy Edison)
vided the remaining parts of the structural system have sufficient reserve strength to redistribute the stress and that the probability of the
entire platform to survive is also acceptable.
Determining those probabilities is achieved via the required safety target which can be related to the actual system capacity of the
platform, measured by the residual strength reserve of the whole
jacket. This is evaluated in the simplified system reliability assessment RINA Services applies for the certification of the life extension
of offshore platforms in different locations. The process involves using the statistical distribution of the environmental load extremes
according to a lognormal distribution, which allows the reliability
evaluation to be delivered in a simple closed form.
A joint industry project by Italian offshore operators concerning
the life extension of various offshore structures in the Adriatic Sea
evaluated the approximation introduced into this evaluation, with
negligible results.
RINA also applied this approach for Dragon
Oils LAM 28 platform in the Turkmen sector of
the Caspian Sea in a water depth of about 27 m
(89 ft), comprising various conventional jacket modules joined to the topsides by a latticed module support
frame. In 2013 the platform was subject to a reassessment
analysis targeting a life extension of 10 years. The reassessment
revealed that the platform was compliant with the required safety
level for the extension, subject to a special survey, with the proviso that in the event of a sea state leading to a maximum wave
height of 10 m (33 ft), the facility must be evacuated.
The same approach was used to determine the expected
life of the Nen platform that had been in operation in the
Gulf of Mexico for 10 years and was then due to be modified
and relocated for installation offshore Congo. The analysis,
taking into account the structural modifications and conditions at the new site, showed that an in service life of 10
years was attainable with acceptable safety levels of 10 years without the need for strengthening measures.
www.offshore-mag.com November 2015 Offshore 69
I T A LY
Compressed natural gas carrier opens

options for remote, marginal fields
Ship-shape concept addresses obstacles to development
loating LNG vessels are emerging as a solution for harnessing

gas from mid-size fields remote from offshore infrastructure.
But there are many smaller offshore fields that do not justify
the huge vessels that Shell and Petronas have commissioned
for their current projects off Australia and Malaysia.
Fincantieri Offshore is working on an alternative concept for a shipshaped compressed natural gas carrier the CNG32000 that could
economically transport gas from stranded fields, compressed onboard
to a pressure of 166 bar (2,407 psi), to a standard onshore unloading station or an existing regasification plant up to 1,500 mi (2,414 km) away.
Aside from providing a market for gas that might otherwise sit in the
ground, the concept opens other potential benefits to offshore operators.
One is avoiding the expense of installing a gas pipeline in the case of an
oil field with associated gas, or having to re-inject the gas into the reservoir. Another is an economic means of disposing of gas from extended
offshore well tests, ensuring compliance with restrictions on flaring.
Overall general view of the ship

showing internal rack arrangement.
(Images courtesy Fincantieri)
There are numerous competing compressed natural gas (CNG)

concepts, but according to Roberto Gonan, Head of Basic Design at
Fincantieri Offshore, none are sufficiently matured to be considered
for industrial production and vessel applications.
Fincantieri started work in earnest on the CNG32000 in 2013,
initially studying various containment systems, methodologies, and
ship configurations. It developed the concept in its present form in
2014, and has performed all work to date in-house. The ship is designed for a 20-year lifespan. Its main dimensions include an overall
length of 220 m (722 ft); a molded breadth of 40 m (131 ft); a design
draft of 7.2 m (23.6 ft); and a deadweight of around 6,700 metric
tons (7,385 tons). Its total CNG transport capacity during a single
voyage under standard conditions would be around 6.34 MMcm
(223.9 MMcf) at 166 bar (2,407.6 psi) and a temperature of 25C
(77F). This would be stored in pressure vessels grouped together
in around 500 racks, stationed in 10 cargo holds (50 racks each).
Next to the cargo holds, the mid-body portion of the ship features
a double hull and a double bottom, the inner part of which is used for
ballast water tanks. Toward the aft section is the accommodation block,
housing 21 crew members, in a superstructure above the main deck containing the engine room. Two 4.5-MW Azipod propulsion units combined
with a bow thruster maintain the ships position during offshore tandem
loading operations. Power is provided by three diesel generators with
dual-fuel engines, each outputting around 4.3 MW. A back-up generator
is stationed beside the accommodation block above the main deck.
The fore part of the vessel has a bulbous bow. Here the CNG handling system and compressor are located, above the main deck and
forward of the cargo holds.
Initially, Gonan explained, our main focus was on the compressed
gas containment and cargo handling systems. We took into account and
compared several different building materials, assessing physical properties and chemical compositions. We also looked at market availability
aspects and economic applications.
At present we are working on various issues. These include refining the thermo-fluid dynamic study, and assessing the ships different
working conditions (loading/unloading/emergency release and so
on). In addition, we are fine-tuning the prototype gas rack with the
potential supplier of the pressure vessels, and we are finalizing safety
I T A LY
External view
of the ship from
bow showing forward loading
arrangement.
aspects such as the FMEA analysis.

The compression system has been designed to allow the ship to
receive gas at various pressures and store it in metallic pressure
vessels. The main components are the compressors, similar to those
used in re-liquefaction systems in LNG carriers; thermal expansion
valves; coolers; heaters; and remote control valves.
Some competing CNG concepts are based on storage pressure of
250-350 bar (3,626-5,076 psi), much higher than the current target for
the CNG32000. According to Gonan, there are both economic and energy benefits in compression between 140 and 160 bar [2,030-2,320 psi],
compared with design pressures of 250 bar and above.
Recent market studies for high-pressure vessels mostly foresee the
application of materials not yet tested for CNG being transported at 250
bar and also envisage very high material costs. The solution we are proposing is intended to achieve the best compromise between the size of
the vessel and the quantity of gas transported, at the same time eliminating upstream any possible issue relevant to time-to-market and proven
technology. Our design is ready to build, and we want to use the highest
quality standard components available today for the compression/storage system, in terms of pressure vessels, valves, pipes and so on.
Gonan stressed that this is not a one size fits all concept. Each
project would need to be approached on a case-by-case basis. In addition, it is more practical to think in terms of a fleet of CNG vessels,
rather than a single carrier, in order to maximize efficiency.
Prior to entering the ship for compression, the produced gas would
need to be pre-processed. Any hydrogen sulfide would have to be eliminated for safety reasons and any carbon dioxide would have to be kept below a certain percentage in order to guarantee the calorific properties of
the gas and the heaviest hydrocarbons separated while under pressure.
The compression system we have designed includes scrubber
equipment dedicated to cleaning the gas of heavier hydrocarbons and
liquid phases, Gonan said. Depending on the amount and characteristics of these quantities, the design of the pre-processing system will
require different sizing, equipment, and configuration complexity.
Arrangements for loading/unloading are provided in the forward part
of the ship, comprising two manifolds with longitudinal bow connections
suitable for offshore tandem loading. A hawser would be deployed to secure the ship and flexible hoses during cargo transfers. Transversal connections two portside and two starboard are also arranged forward for
cargo transfer at the port quayside reception terminal.
Cargo loading/unloading would typically be completed in less than a
day, Gonan estimated. This assumes the gas would be received from the
source (i.e the offshore production platform) at 60 bar, and delivered to
the onshore terminal at 60 bar as well. Offshore tandem loading operations could be performed even in rough seas, he added, although this
remains to be validated in tank tests.
Aside from the gas containment system and associated equipment,
the shape, layout, and facilities of the ship are similar to those of a
standard LNG carrier, Gonan said. In terms of safety, while LNG is a
cryogenic liquid at -162C [-259.6F] carried at the boiling point, and
therefore continuously generating boil-off gas, the CNG is a stable fluid
contained inside the pressure vessels at the ambient temperature condition. As for the CNG storage, the 166 bar pressure in our design is in
line with, or even below that of the typical maximum used for transportation by road.
On arrival at the reception terminal, the ship could directly transfer
its cargo into the onshore network if the latter is configured to receive
the gas within a reasonable timeframe. In this case very limited facilities would be needed at the reception end, Gonan suggested, such as
gas metering, odorization, and a Wobbe index correction system. Alternatively, the ship could be used as a storage facility, remaining at the
terminal as long as necessary. If this is not possible or not economically
viable, onshore storage would have to be considered.
Harsh environment valves, solenoids
tos designs and manufactures ex-proof stainless steel valves,

which can withstand severe corrosive environments and low
ambient temperature up to -60C (-76F). Applications include
use with water-based fluids and pure water.
The company is also offering explosion-proof stainless steel solenoids with multi-certification markings ATEX, IECEx, and EAC for
gas, vapors, and dust:
Gas group IIC, Conductive Dust IIIC, T class up to T6/T85,
with high protection level for explosive Gas (Gb) and Dust atmosphere (Db).
In addition, UL certification is available:
cULus Listed according to UL1002 & CSA22.2 n139 Group I
Class C&D.
Atos range includes leak-free poppet style or spool type, direct or
pilot operated, and on-off or proportional solenoids, with standard 10
W or low consumption 3.5 W power supply.
They are designed to comply with demanding offshore and subsea conditions.
RL54/E stainless steel valve. (Image courtesy Atos)
www.offshore-mag.com November 2015 Offshore 71
I T A LY
Valve/instrumentation group diversifies into firefighting
alvitalia is expanding its service to the

upstream sector after acquiring Italys
two main firefighting systems specialists, Silvani and Eusebi.
Since 2002, when Valvitalia was established
in Rivanazzano Terme, south of Milan, the
group has grown steadily following a series of
acquisitions. Aside from most standard types
of offshore valves, the company can offer a
one-stop package that includes actuators, pig
launching and receiving traps, flanges, pipe fittings, metering systems for measuring, filtering
and regulating fluids and gases, and now firefighting systems, which also incorporate valves.
Today the group claims to be one of the
five largest producers of valves and associated equipment worldwide, with turnover for
2015 projected at 500 million ($565 million)
and 14 manufacturing plants worldwide.
Offshore in particular has become a major
market for us, said Tony Ellis, Valvitalias
vice president sales and marketing. Many
of our deliveries are for FPSOs, platforms,
and subsea facilities. Our aim is to be as flexible and as all-inclusive as possible in what
Side entry ball valve, 12-in. 2500, for BPs Juniper project offshore Trinidad & Tobago. (Photo
courtesy Valvitalia)
we offer, whether that means engineering

equipment for high-pressure applications, in
special materials or with special qualifications.
We can provide additional testing in-house of
high-pressure special products for production
platforms, fixed and floating, or low-pressure
testing for LNG applications.
Valvitalia has a frame agreement with BP
currently it is supplying one of its new FP-
SOs in the North Sea and various facilities

in the Gulf of Mexico and another frame
agreement with Statoil in Norway that takes
in the Johan Sverdrup project, including the
supply of high-pressure gate valves.
Aside from cutting cost, increased safety
is one of the industrys current priorities.
This means extended test criteria, particularly for corrosion properties to withstand
sour service and to meet operators emissions targets. Valvitalias in-house test facilities include a climate room that can be
used to test valves and actuators at very
low to very high temperatures from -70C
(-94F) to +120C (248F).
Of the two latest companies acquired,
Silvanis range is more specifically targeted
offshore, Ellis said. They offer a highly engineered service based on the layout of the
facility and available space. Their clients include BP, ConocoPhillips and ExxonMobil.
All Valvitalias products for offshore use
are manufactured in Italy, so there is a close
interface between the various plants, Ellis
pointed out.
AUV-borne leak detection system

inspects Mediterranean pipelines
ollowing extensive offshore trials, Co.L.Mars

acoustic leak detector (ALD) has completed
its first deployment from an autonomous
underwater vehicle (AUV) for inspection of pressurized pipelines.
The systems main components are an
underwater acoustic sensor which acquires
data along the pipeline; a transmission line
relaying data to the surface vessel; a hardware receiver; and software that assesses the
signal in real time and its progression along
the tracked pipeline. Originally the technology was designed for deployment from a towfish or ROV, but during 2013-14, a prototype
ALD for installation on an AUV completed
successful trials in a test pool and on a nonpressurized offshore pipeline.
This year, the operator decided to adopt the
same configuration for planned maintenance
of pipelines serving an oil and gas field in the
Mediterranean Sea. One of the main attractions
for the client was cost, according to Co.L.Mars
managing director Luigi Barbagelata. Unlike
an ROV an AUV does not need to be deployed
from a specialist vessel in DP mode. In this case
it was operated from a local supply boat.

The ALD was used in two separate campaigns: one on two pipelines with a total length
of 20 km (12.4 mi) during May/June and the
other on various pipelines with a total length of
21 km (13 mi) during August/September. In
addition, the AUV undertook all conventional
survey tasks, including free-span and cathodic
protection inspection. In one case, Barbagelata said, we finished ahead of schedule while
in the other there was some delay due to bad
weather. With a bigger ROV, however, the cost
would have been much higher due to the need
to need to keep the DP vessel on standby.
The survey was conducted both in autonomous and in remotely operated mode in the
second case, data was acquired in real time
on the supply boat via a fiber-optic link used
to control the vehicle.
During 2014 Co.L.Mar also staged trials
in a test pool for a deepwater operator to determine whether the ALD could be used to
detect a leak causing ingress of water into
a pipeline. As the industry moves toward
development in ever deeper water, there is
The Acoustic Leak Monitor.

(Image courtesy Co.L.Mar)
potential for a leak inside the pipeline if the

external pressure is higher than the internal
pressure. However, traditional inspection
techniques are based on detecting only fluid
coming out of a pipe.
We designed and produced a system that
comprised a piece of pipe connected to other
pipes pressurized from the outside, in order
to generate inward leaks ranging in diameter
from 0.5-5 mm, with pressures from 2-100
bar [29-1,450 psi]. The trials simulated scenarios for both liquid and gas-filled pipelines.
The acoustic signals generated by the leaks
were very clear and detectable. Results were
very promising as it proved the applicability
of passive acoustic technology.
I T A LY
ATV growing deepwater valve design capability
dvanced Technology Valve (ATV) designs

and produces subsea valves and actuators
that operate in water depths up to 3,000 m
(9,842 ft), and other products for hydrocarbon
processing on platforms.
The company is based in Colico in northern Italy
on the eastern shore of Lake Como. Over the past
two years, ATV has increased its manufacturing capacity after acquiring 20,000 sq m (215,278 sq ft),
of extra land of which 5,700 sq m (61,354 sq ft) is
covered, and establishing a new welding shop that
features 21 robotic welding machines.
In addition, the company has expanded its machining capability with several latest-generation
CNC lathes and machining centers, and doubled
its assembly and testing area. All production phases are performed in-house. It has also steadily recruited personnel, employing 400 staff now compared with 40 in 2007.
To test the valves for deep/ultra-deepwater applications under the
actual pressure and temperature conditions, ATV has designed and
manufactured what it claims is one of the industrys most advanced hyperbaric chambers, with a 2.5-m (8.2-ft) internal diameter. This can simulate operating conditions of a valve and its actuations, including in large
HIPPS system for the Julia project in 3,000 m of water,

comprising two TC 5 gate valves, pressure sensors,
and injection valves. (Photo courtesy ATV)
dimensions, in up to 4,500 m (14,764 ft) of water (450

atmospheres).
ATV is producing subsea valves and actuators
for the Stampede oil and gas project in the Gulf of
Mexico, in a water depth of roughly 3,500 ft (1,100
m). This order is for 9-in. 10,000-psi through conduit gate valves with FSC hydraulic actuator and
ROV override, and 9-in. 15,000 psi (1,034 bar) with
gear and ROV override. For the ultra-deepwater
Julia project in the same sector, the company
has developed what it claims is the first high integrity pressure protection system (HIPPS) ever
installed in the Gulf of Mexico.
Offshore Angola, ATV will provide large bore
high-pressure valves for Totals Kaombo project in deepwater block
32, in this case subsea ball valves, 10-in. and 12-in. and rated to 7,500
psi (517 bar), featuring hydraulic actuation FSO with ROV override.
Finally, for the ongoing Kashagan development in the Capsian
Sea, ATV is supplying conduit gate valves in 6-in. and 18-in. sizes,
rated to 10,000 psi and 15,000 psi.
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New tools and technology for the offshore industry

Joint venture highlights well intervention technology
According to the findings of the recently
published Wood Report, supported by data
compiled by the industry body Oil & Gas UK,
the equivalent of up to 24 Bbbl of oil may still
lie in the UK continental shelf, on top of the 42
Bbbl already produced. The report recognized,
however, that a number of actions are required
for this to happen; alongside regulatory and
fiscal changes, the need for closer cooperation
between operators and investment in improved
oil recovery (IOR) was also raised.
While aging assets are a factor, there are
strong signs that under-investment in assets
and sufficient uptake of improved oil recovery
and enhanced oil recovery (EOR) techniques
will have a significantly adverse effect on
maximizing economic recovery for the UK,
the report reads.
It is acknowledged that some EOR schemes
are costly and complex to operate, but industry
must be encouraged to invest more in these
schemes to avoid leaving significant value
behind.
With that in mind, and following a series of
meetings with oil and gas service suppliers in
the UK and overseas, Maritime Developments
Ltd. entered into a partnership with Magma
Global.
The integrated reeler and tensioner system can

operate and store the pipe on a minimal footprint. (Image courtesy Maritime Developments)
Magmas carbon fiber and PEEK polymer

pipe, the m-pipe, has the capacity to withstand
high flow rates, pressures, and temperatures
thanks to its composite microstructure. In
comparison to conventional steel, aluminum and
titanium solutions, the m-pipe is significantly
lighter, yet more resistant to highly corrosive
and aggressive fluids. The micro-structure of the
m-pipe allows for ultra-deepwater applications
where conventional steel and non-bonded flex-
ible risers have reached their operational limits.

All these attributes can potentially contribute
to increased safety, reliability, and viability of
intervention operations.
The cost-saving benefits of the m-pipe extend
even further, when considering the prerequisites for its deployment and retrieval using
back-deck equipment.
One way Magma Global says m-pipe can
reduce costs is that the pipe can be used on a
reeling system for fast and reliable deployment.
To maximize the potential return on investment for the operator who chooses to use
Magmas product, Maritime Developments
designed a compact back-deck solution.
The integrated reeler and tensioner system
can operate and store the pipe on a minimal
footprint. Because of the light weight of the
pipe and therefore low tension required to operate it, the structural design of the solution is
simpler than that designed for non-bonded and
steel pipes.
The design of the reeler complements
the functionality of the pipe, allowing for a
significant cost reduction for the duration of an
offshore project
The joint venture targets the well intervention market as its first point of call.
Halliburton unveils next-generation acoustic evaluation service

Halliburtons Wireline & Perforating business has introduced the
Xaminer Sonic Service, an acoustic formation evaluation tool that
provides operators with high-fidelity data and advanced processing
capabilities to more accurately characterize a wide range of reservoirs,
including those in deepwater, mature fields, and unconventionals.
This technology works by recording acoustic waveforms that travel
from a transmitter through the formation to a receiver. As a result,
operators can measure seismic properties and analyze reservoir
characteristics and geomechanical properties. These acoustic applications provide information to help customers optimize completion and
stimulation design and reduce drilling and completion risks.
The Xaminer Sonic tool includes 104 receivers on a 6-ft (2-m) array
providing the longest transmitter to receiver spacing in the industry and the purest acoustic signal to evaluate near and far fields in
real-time. The tool features a unique design that eliminates coupling
between transmitters and receivers while maintaining strength to carry
other tools below.
The company says the technology is especially beneficial in environments with soft rock and wells containing large boreholes, which
increases signal attenuation.
The Xaminer Sonic tool is the culmination of four years of engineering, modeling, and testing to provide our customers with innovative logging technologies, said David Topping, vice president of Wireline and
Perforating. Halliburton is in a strong position to work with operators
to generate high-fidelity acoustic data through a single trip in the hole
to evaluate reservoirs with greater precision.
The Xaminer Sonic tool also functions in high-pressure/high-temperature

environments to provide optimal response to borehole pressure waves.
(Photo courtesy Halliburton)
Clariant chemical solution averts well shut-in

Clariant Oil Services recently worked
with an oil producer in the Gulf of Mexico to
develop a new anti-agglomerate chemistry to
reduce the amount of methanol concentration
in the oil phase to prevent the shut-in of a
pipeline.
An 11 mi-long (17.7-km) subsea tieback ran
from a new well deposit back to its existing
production facility in the GoM. The line was
responsible for producing 3,500 b/d of oil and
another 3.8 MMcf/d of natural gas.
Keeping the line clear of blockages or pressure spikes required 1,500 gal/d (5,678 l/day)
of methanol to remain outside of the hydrate
risk region. While this high dosage of the
chemical can work for controlling agglomeration in wet oil production, it can also result
in significant methanol concentration spikes
when working with a subsea tieback that produces less than 1% basic sediment and waste.
In this case, the low water cut resulted in
the methanol transferring into the oil phase,
says Scot Bodnar, global flow assurance manager for Clariant Oil Services. The methanol
concentration in the oil phase spiked to levels
exceeding 2,000 ppm (using gas chromatography analysis), which is well over the pipeline
specification of 50 ppm.
As a result, the pipeline company threatened to shut in the well if the producer could
not lower the methanol concentration in the
oil to within spec limits. This is when the
producer worked with Clariant Oil Services
to develop another method for controlling
hydrate agglomeration, reducing methanol
concentration and increasing the oil quality.
Efficiency gains were achieved with the development of Clariant Oil Services HYTREAT
DF 12851A hydrate management and control
product, developed for the oil producer in the
GoM. Whereas high dosages of methanol
were required to control hydrate agglomeration, using the companys chemical solution
resulted in a 97% drop in chemical use, a
substantial savings for the producer and a significant advancement in sustainability efforts.
HYTREAT DF 12851A provided a dual benefit in this application. First, the anti-agglomerate controlled hydrate formation to keep the
flowline from pressure spikes and blockages.
Equally as important, HYTREAT DF 12851A
reduced methanol-in-crude concentration
nearly 98%, from 2,000 ppm to 43 ppm, below
the 50-ppm pipeline specifications to eliminate
the need for any well shut-ins.
Clariant Oil Services thinking affected
HYTREAT DF 12851A reduced methanolin-crude concentration nearly 98%.

(Courtesy Clariant Oil Services)
the bottom line for this Gulf oil producer as

well. Traditional practice would have required
installation of an expensive water wash system
to mechanically reduce the methanol concentration levels in the oil. However, HYTREAT
DF 12851A eliminated the need for the water
wash system and production deferments,
enabling the operator to realize even greater
production figures valued in the millions of
dollars per year.
IPLOCA - Supporting
the global pipeline
construction
industry
IPLOCAs mission is to provide value to members through a forum for sharing ideas,
engaging the industry and its stakeholders, facilitating business opportunities and
promoting the highest standards in the pipeline industry.
Unique Business Networking

HSE Promotion & Awards
Construction Innovation & Awards

Industry-specic Workshops
Visit www.iploca.com for more information on membership
International Pipe Line & Offshore

Contractors Association
Geneva - Switzerland
BUSINESS BRIEFS
People
Wood Grouphas appointed Robin Watson
as CEO, effective Jan. 1, 2016. He succeeds
Bob Keiller who has decided to retire from
the company on Dec. 31, 2015.
Tommy Sundt has stepped down as CEO
of Norwegian Energy Co. ASA. He will continue to fill the role as general manager for the
Norwegian operations until the end of 2015.
Riulf Rustad will intensify his efforts with the
board, and Silje Augustson will in her capacity as executive director take on the group
CEO role and assume additional functions and
responsibilities related to the daily operations
of the group.
R. Scott Rowe has assumed the role of
president and CEO of Cameron in accordance
with its succession plan. He succeeds Jack
B. Moore, who is retiring but will continue to
serve as chairman of the board of directors.
EMAS Offshore Ltd. has
appointed Capt. Adarash
Kumar as CEO.
FMC Technologies has
appointed Kay Priestly to its
board of directors.
The Energy Industries
Council has named Chris
Haynes its new president.
Priestly
Stephen Liu has been
appointed to the American
Bureau of Shipping Endowed
Chair in Metallurgical and
Materials Engineering at the
Colorado School of Mines.
The Check-6 International
Inc. board of directors has
appointed Laura Owen as
CEO.
Owen
Freeport-McMoRan has
cut its board of directors
from 16 members to nine. The reconstituted
board is comprised of seven independent
directors: Gerald J. Ford (lead independent
director), Robert A. Day, Lydia H. Kennard, Jon C. Madonna, Dustan E. McCoy,
Stephen H. Siegele, and Frances Fragos
Townsend; and two executive directors:
James R. Moffett, chairman, and Richard
C. Adkerson, vice chairman, president, and
CEO. The company will no longer have an Office of the Chairman management structure.
ProSep has appointed Patrick McCarthy
as CEO. He succeeds Neil Poxon.
Lamprell has promoted Niall OConnell
to COO.
The CGG board of directors has named
Michael Daly as an independent member.
He also will serve on the boards strategic and
technology committee.
Mar vin J. Migura has decided to relinquish his position as executive vice president
of Oceaneering International, effective Dec.
31, 2015. He will continue to serve as a senior
PennWell announces
leadership changes
PennWell Corp. has
announced the retirement of Robert F. Bob
Biolchini as president
and CEO and the election
of Mark C. Wilmoth
to succeed Biolchini as
president and CEO.
Biolchini
Biolchini has been
PennWells president and
CEO since April 1, 2000,
and Wilmoth has served
as its senior vice president, Finance and CFO for
the past 11 years.
PennWell also elected
Biolchini as chairman
Wilmoth
of its board of directors,
and he will remain on
the companys executive committee,
as announced by outgoing Chairman
Frank T. Lauinger, who becomes
vice-chairman.
vice president and remain a part of the executive management team at least through the
end of 2016.
io oil & gas consulting has hired Chris
Freeman as director of field development,
Robert Dickson as director of field development project excellence, Graham Inman, as
operations director, Tim Highfield as head of
facilities, Julio Herbas as head of subsurface,
and Philip Howe as head of subsea.
Bill Maddock has been named director of
the Subsea Systems Institute.
Paul Breaux has been named general
manager of Tri*Drill Services.
Ronny Johan Langeland
has resigned as chairman of
the board of Prosafe SE due
to health reasons.
Newpark Drilling Fluids
has appointed Tim Armand
as vice president of US
Breaux
Offshore Operations.
Earth-i has appointed Dr.
Peter Hausknecht as chief scientist.
Exova has promoted Matt Davies to managing director for its Middle East, Asia, and
Asia Pacific region.
Kathy Oujesky has joined VIV Solutions
LLC as project manager.
Andrew Robins has joined EnerQuip as
controls director.
Harkand has appointed Doug Fieldgate as
Africa general manager.
Wilhelmsen Ships Service has appointed
Frank Liang as regional offshore manager
Asia.
Gaurdie E. Banister Jr. has been elected
to the Marathon Oil Corp. board of directors.

John Bradshaw has joined the technical
team at the International Marine Contractors
Association as a technical adviser.
Philip Argo has joined
HBJ Gateleys Aberdeen
office as a consultant. Addi
Shamash has been promoted to partner in the corporate
restructuring team.
Christopher L. Nagel
has resigned as CFO and
executive vice president of
Argo
finance of Fairmount Santrol.
Stirling Group has appointed Ray Ramsay as
regional manager for crisis
and continuity management
in the Middle East and
Dominic Webb as global
principal project manager.
George Winning has
joined Element Materials
Shamash
Technology as global corrosion specialist.
MacGregor has appointed Zhengyu Li as
vice president, head of the China business.
Based in Shanghai, he also will be a member
of the MacGregor Group Executive Team.
Airbus Helicopters Inc.
has named Ralph Crosby
III as executive director of
corporate and VIP sales.
Melfort Campbell and
Martin Jones have been
appointed to the board of the
National Subsea Research
Initiative.
Crosby
Borets has named Obren
Lekic as vice president of
sales and business development for the US, and
Nicholas P. Boyaci as the
business development manager, to be based in Tulsa,
Oklahoma.
Statoil has named Brd
Glad Pedersen as vice presiLekic
dent media relations. He succeeds Jannik Lindbk Jr.
Anadarko Petroleum
Corp. has elected Dr. Sean
Gourley as an independent
director and promoted
Amanda M. McMillian to
senior vice president, general
counsel, corporate secretary,
and chief compliance officer.
Boyaci
Kris Yorke has joined
OceanTools as business
development manager.
Greenes Energy Group has appointed
James Del Buono and Matt McIntosh as
key account managers.
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Offshore Top 5 Projects - 2015

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The editors of Offshore have made their choices for the winners of the
Five Star Award the top five offshore field development projects for 2015.
The projects were selected on the basis of best use of innovation in production
method, application of technology, and resolution of challenges, along with
safety, environmental protection, and project execution.
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Speakers:
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Offshore
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Offshore
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Offshore
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BUSINESS BRIEFS
Company News
Lloyds Register Energys Training
Academy and The Well Academy are collaborating to develop a new enhanced training
program for well control certification. Courses
will offer delegates an advanced participative
experience in well control certification training and well control equipment training, with
classroom and case studies complimenting
workgroup sessions. Training will be offered
with simulators to give delegates hands-on
scenario training using well control equipment. The first course is anticipated to be
ready in December 2015.
The University of Houston has launched
the UH Energy Fellows program, a group of
10 experts from a variety of disciplines. The
fellows UH faculty whose work involves
various aspects of energy will write for a
new UH Energy blog and offer other public
outreach on their topics over the next year
with the goal of expanding energy literacy.
Their work ranges from technology development to improve safety and reduce costs to
issues involving workforce training, green
design, and economic policy.
Aqualis Offshore has opened an office
in Kuala Lumpur, Malaysia. The company
says this new office will offer a full range
of services with support from other group
offices. However, its initial focus will be on
transportation and installation, marine warranty services, and engineering.
Exova has opened its first facility in the
northeastern US with a new materials and
corrosion testing laboratory in Pittsburgh,
Pennsylvania. The laboratory will provide
testing and consultancy services in metallurgy, polymers and coatings as well as corrosion risk assessment and mitigation.
Fabritech UKs managing director, Stuart
Mackie, and engineering manager, Innes
Smith, have established Engineering Solutions and Rental Ltd. in Aberdeen, UK. The
engineering firm starts with CNC machinery,
tooling, and software, and will be based in
Fabritechs Insch Business Park. The firm
will provide design, engineering services, and
project management to the subsea, drilling,
and renewables sectors.
DSL MENA has opened a new facility in
Hamriyah, UAE, with quayside access providing direct entry to the Persian Gulf. The
complex includes 3,700 sq m (39,826 sq ft)
of fabrication workshop, 4,000 sq m (43,055
sq ft) of fabrication/rig up yard space, and
modern offices.
Magma Global has raised $60 million from
Strategic Investment Capital Partners and
other investors to support its growth plans.
The product is claimed to be one-tenth the
weight of equivalent steel pipe with strong
resistance to degradation. The company will
use the new funds to expand its manufactur78 Offshore November 2015 www.offshore-mag.com
ing capability in order to achieve a four-fold

increase over the next two years, and to support its rental business.
DynaEnergetics has entered into a
principal partner agreement with Weatherford International whereby Weatherford
becomes the first oilfield services firm to
offer DynaEnergetics DynaStage perforating
system.
The formation of Fugro GeoSer vices Ltd.
in the UK is complete with the integration of
Fugro Seacore, Fugro Engineering Services, EM Drilling, Fugro Loadtest, Fugro
Instrumentation & Monitoring, and Fugro
Aperio. The new entity has capacities in the
areas of nearshore geotechnical, offshore
geotechnical, marine installation, onshore
ground investigation, cone penetration testing, geophysics, and instrumentation and
monitoring. The company also has geotechnical laboratories and carries out a range of built
environment surveys and testing.
ITTs Ctreat and Bombas Goulds de
Mexico have allied to provide large-scale seawater, potable water, and high purity water to
offshore Gulf of Mexico oil and gas operators.
BGM is now an authorized sales representative of Ctreat products and services with
exclusive territory rights in the offshore
market in Mexico.
ALATAS has opened a new office in Ciudad Del Carmen, Mexico: ALATAS Mexico
SRL de CV.
Acona and eDrilling have partnered to offer
drilling and well performance solutions, well
management, and well engineering services
to operators, drilling contractors, and service
companies.
FMC Technologies Inc. and Prosernat
have signed an alliance agreement to become
a single source supplier of integrated modular
systems and comprehensive solutions for the
processing, separation, and treatment of oil,
water, gas and solids. Through the alliance,
the companies will deliver complete modularized, innovative, and cost-effective processing
solutions to both greenfield and brownfield
assets.
GE has agreed to acquire IMT Solutions,
a private Netherlands-based manufacturer of
ultrafiltration and microfiltration membranes
for water treatment. With IMTs ultrafiltration
membrane technology, GE will expand and
complement its existing ZeeWeed advanced
ultrafiltration hollow-fiber membrane portfolio.
William Jacob Management Inc. has
retained the services of Rainmaker LLC
to provide sales and marketing support
worldwide.
Seven Lakes Technologies and Noah
Consulting have formed a strategic alliance
in which Noah Consulting will provide implementation and data management services for
Seven Lakes Technologies clients.

J2 Subsea, an Acteon company, has renewed its global sales and rental distribution
partnership with WeSubsea. The partnership
provides customers around the world with
technical support from J2 Subsea, and global
access to the WeSubsea range of baskets,
dredgers and tooling, available for rental and
sale.
Kongsberg Maritime and Algor yx
Simulation have entered into a five-year
agreement to continue developing fidelity
and realism in the K-Sim maritime simulators. Algoryx Simulation develops real-time
physics simulation technologies resulting in
realistic motion dynamics. The companys
physics simulation kernel, AgX Dynamics, can
solve millions of physics equation in real time,
enabling integrated simulation of the many
interacting mechanical components of maritime systems, such as wires, chains, winches,
anchors, cranes, engines, drums and more.
These simulations are also fully integrated
with wind and water dynamics as well as ship
hydrodynamics. The companies have already
collaborated for eight years.
James Fisher and Sons plc has launched
James Fisher Subsea Excavation, the new
trading name and brand of the mass flow
excavation business.
Trelleborg Offshore & Construction
has completed the acquisition of Maritime
International Inc., a US-based manufacturer
that designs and produces marine fender
systems and other quay wall accessories.
RMEC has completed expanding its
onshore equipment and storage facilities. The
yard, 50 mi (80 km) outside of Aberdeen, has
grown by 2,000 sq m (21,528 sq ft) to reach a
total size of 3,300 sq m (35,521 sq ft). The new
space will be used for storage and upkeep on
well service equipment such as pumps, pressure control hardware, valves, and wireline
units.
GMC was named as a finalist for the
American Society of Mechanical Engineers International Global Pipeline Award
for its Intelligently Connected Pipe (ICP).
The award recognizes the pipeline technology innovation process in all phases from the
research laboratory through field application.
The ICP features an ISO-certified, fatigueresistant, innovative reusable pin-and-box
style mechanical connector that is premanufactured to the pipe ends onshore in a
controlled environment, eliminating the need
for offshore welding, installation, and lay
vessels.
Det norske oljeselskap has agreed to
acquire Svenska Petroleum Exploration
AS for a cash consideration of $75 million.
The transaction is expected to close during
1Q 2016, subject to regulatory approvals.
Hosted by:
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February 9-11, 2016 Moody Gardens Hotel & Convention Center Galveston, Texas USA
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platforms and hulls for both deep and shallow water. A comprehensive, two-track technical program presented
concurrently with an exhibition, Topsides, Platforms & Hulls Conference & Exhibition covers the design,
engineering, construction, transportation, installation, and modifcation of topside structures, platforms
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This forum, coupled with an exhibit hall floor that displays more than 250 companies showcasing their products and
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MARCH 22-24, 2016 HENRY B. GONZALEZ CONVENTION CENTER SAN ANTONIO, TX

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The 20th Anniversary edition of Offshore West Africa will return to Lagos,
Nigeria on 26-28 January 2016, delivering the premier technical forum
focused exclusively on West African offshore exploration and production.
The conference will deliver the latest technological innovations, solutions
and lessons learned from leading industry professionals.
Offshore West Africa Conference and Exhibition remains the leading
source of information on new technology and operating expertise for this
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Gain access to the premier technical oil & gas conference for the West African region
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The conference is CPD endorsed and each delegate receives complimentary Energy
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PENNWELL PETROLEUM GROUP
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Prominter
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Daniel Bernard danielb@pennwell.com
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EURASIA
Sicking Industrial Marketing
Kurt-Schumacher-Str. 16, 59872 Freienohl, Germany
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Ferruccio Silvera info@silvera.it
JAPAN
e.x.press Co., Ltd.
AIOS Gotanda 606, 1-10-7 Higashi-gotanda
Shinagawa-Ku, Tokyo 141-0022, Japan
PHONE +81 3 6721 9890 FAX +81 3 6721 9891
Masaki Mori masaki.mori2@ex-press.jp
SOUTHEAST ASIA AUSTRALIA
13 Langrune Grove,
Port Kennedy, WA, Australia 6172
PHONE +61 8 9593 4405 or +61(0) 437 700 093
FAX +61 8 9593 3732
Mike Twiss miket@pennwell.com
INDIA
Interads Ltd., A-113, Shivalik, New Delhi 110 017
PHONE +91 11 628 3018 FAX +91 11 622 8928
Rajan Sharma rajan@interadsindia.com
ABS Group ............................................55

www.abs-group.com
AFGlobal Corporation ..........................47
afglobal.com/oilandgas
Airbus Helicopters ................................33
www.airbushelicopters.com
Aker Solutions ........................................9
www.akersolutions.com
ARC Advisory Group ........................... C3
www.arcweb.com
ATOS S.p.A. .............................................4
www.atos.com
ATV S.p.A. ........................................38-39
www.atvspa.com
KOREAN AIR .........................................59

www.koreanair.com
B
Bauer Compressors, Inc. .....................49
www.bauercomp.com
Bentley Systems ...................................37
www.bentley.com
BG Exploration &
Production India Ltd. ............................80
www.bg-group.com/India
Bluebeam Software, Inc. ......................45
www.bluebeam.com
Bristow Group ....................................... 19
bristowgroup.com
Brunswick Commercial Government
Products ................................................67
www.brunswickcgp.com
C
CANSCO Dubai, LLC. ...........................31
www.cansco.com
Clarcor Industrial Air ............................44
www.clarcorindustrialair.com
Colmar S.r.L. ......................................... 15
www.colmaritalia.com
Cortec Fluid Control .............................35
www.uscortec.com
Crowley Maritime Corporation...............1
www.crowley.com
D
Delta Subsea LLC ...................................7
deltasubsea-rov.com
Dril-Quip ................................................ 11
www.dril-quip.com
National Oilwell Varco ....................23, 41

www.nov.com
Newpark Drilling Fluids ........................27
www.newparkdf.com
O
Oceaneering ..........................................21
Oceaneering.com/WhatsNext
OneSubsea ........................................... C2
www.onesubsea.com
Orion Instruments ................................65
www.orioninstruments.com
P
PennWell
Offshore Webcasts ..........................77
www.offshore-mag.com/webcasts
Offshore West Africa
Conference & Exhibition .................82
www.offshorewestafrica.com
PennWell Books...............................15
www.PennWellBooks.com
Subsea Tieback Forum &
Exhibition .........................................81
www.subseatiebackforum.com
Topsides, Platforms & Hulls
Conference & Exhibition .................79
www.topsidesevent.com
Polarcus.................................................43
www.polarcus.com/xarray
R
R.M. Young Company ...........................70
www.youngusa.com
S
Sandvik .................................................. 13
www.sandvik.com
Schlumberger .........................................3
www.slb.com
ShawCor ................................................25
www.shawcor.com
Stearns Industrial ................................. 14
www.stearnsflotation.com
Fincantieri S.p.A. ..................................51

www.fincantierioffshore.com
FMC Technologies ............................... C4
www.fmctechnologies.com
Tekfen Construction .............................63

www.tekfenconstruction.com
Valvitalia S.p.A. .....................................57

www.valvitalia.com
NIGERIA/WEST AFRICA
Flat 8, 3rd floor (Oluwatobi House)
71 Allen Ave, Ikeja, Lagos, Nigeria
PHONE +234 802 223 2864
Dele Olaoye dele.olaoye@q-she.com
GE Oil & Gas ...................................29, 53

geoilandgas.com
BRAZIL
Centro Empresarial Mourisco
P. Botafogo 501 / Sala 101
Torre Po de Acar, Rio de Janeiro 22250-040
PHONE +55 21 2586 6302
Deny Tenenblat denyt@PennWell.com
Hempel A/S ............................................73

www.hempel.com
FOR ASSISTANCE WITH MARKETING

STRATEGY OR AD CREATION, PLEASE
CONTACT:
PennWell Marketing Solutions
Vice President: Paul Andrews
PHONE +1 240 595 2352
EMAIL pandrews@pennwell.com
W
Weatherford.............................................5
weatherford.com
Wilhelm Layher GmbH & Co. KG.........61
oilandgas.layher.com
I
IPLOCA ..................................................75
www.iploca.com
J
JD Neuhaus Hebezeuge ....................... 17
www.jdngroup.com
The index of page numbers is provided as

a service. The publisher does not assume
any liability for error or omission.
BEYOND THE HORIZON
Software technology evolution helps

streamline offshore engineering
Offshore and maritime engineers have seen amazing leaps in
technology over the past 30 years. In the 1980s, it took more than
10,000 man-hours to create the finite element models for a gravitybased structure in the North Sea. In those days, engineers would
create every single node in the mesh manually.
Because of limitations in software and hardware 30 years ago,
engineers often worked with over-conservative designs. The result
was that they designed structures that often used too much steel
and concrete; and they were very expensive to build. Everything
had to be defined in several different programs: one program to analyze the results, one for code check, and one for fatigue check. It was
a cumbersome and time-consuming way of doing things.
If a change was made in one program, then the values in the other
programs had to be redefined. Of course, this was the source of mistakes. Every user will make input mistakes once in a while. In those
days, they had to run all the various analyses over again within the
external programs. Today the model is defined only once.
The five most important developments in offshore engineering
over the last 30 years are: user experience (graphical user interface, yet scripted); common understanding of a data-centric model
(leading to efficient re-design); support of frequency, deterministic,
and time domain analyses depending on the needs of the engineer;
the possibility to easily make both small and large design changes
(concept modeling paired with powerful mesh editing and refinement); and close interaction between hydrodynamic and structural
analysis.
The rote work and the frustration of offshore engineers working
in the 1980s can be illustrated by the work process of making a finite element model of a gravity-based structure. It was necessary
to plot in the values for every single node, finite element, and load.
Knowing that there could be 100,000 nodes, this obviously took a
very long time. There were some advantages, though. Engineers
had extreme control of the finite element mesh used in the analysis.
Another source of much frustration was that it was extremely difficult to make changes. If somebody wanted to change something
for example put a new arc in the mesh somebody would have to
change everything. It would take so much time.
In the late 1980s, engineers were able to visualize the numbers
on a screen. In the 1990s, geometric modeling and mesh algorithms
enabled users to define a mesh in the program. By that time, if somebody dropped by and wanted to change something, only that part
would have to be done over again.
Another breakthrough was the ability to automatically apply hydrodynamic loads to a structural model. A huge amount of laborintensive work was eliminated while the data quality increased.
Then in the 2000s, DNV GL was one of the first to develop commercial software that automatically found and maintained the connectivity between objects the company calls it concept modeling.
This meant that new structural parts could be inserted or existing
ones could be moved without remodeling. Another benefit is that
the same model is used for a variation of analysis. This allows the
model to grow over time. The panel model (the hydrodynamic analysis model) and the strength analysis model are now based on the
same concept model. So much has been gained from that. Today,
making changes (edit or automatic refine) in the mesh is simple.
Fine or coarse, the user or the client can make the call. The loads
are transferred automatically.
The greatest thing is that parameters can be changed and the consequences seen at once. Users can change the section properties,
code check parameters, loads, or something else. The program will
do the redesign at the click of a mouse, and in a fraction of time new
code check results are available.
Another area that has seen improvement in leaps and bounds is
the ability for automatic graphic reporting. It is a dream scenario. It
only takes a couple of minutes to create a report with images. Engineers spent several hundred hours on this in the 1980s.
All in all, the amount of work has reduced by 50-75%, if not more.
For shell structures (structures built from surfaces and stiffeners), it
can be 90%. Ships, barges, offshore floaters, and concrete gravity-based
structures are typical shell structures, while jackets, offshore wind towers and jackups are typical beam models. The trend is, however, that
details of beam models are modeled using shell modeling techniques
to compute more precise results. The results, of course, are also much
more accurate because it is easy to run multiple analyses.
It is based on the same principles of physics. But today engineers
can run more what if scenarios because of modern personal computers with graphical capabilities and powerful processors.
In the future, the focus will be on engineering efficiency and
smartness in reporting. This covers, among other things, usability
(easy to use), fit for purpose (completeness in functionality), openness (easy to import data from other sources), speed (e.g. cloud
solutions), and the ability to summarize the results from multiple
analyses into one design report.
Looking back, there is a satisfaction in seeing all that is being
accomplished. Software development has come so far to help the offshore engineering community work more efficiently and with more
confidence. It has been a great adventure.
Ole Jan Nekstad
Sesam Product Director

DNV GL - Software
This page reflects viewpoints on the political, economic, cultural, technological, and environmental issues that shape the future of the petroleum industry. Offshore
Magazine invites you to share your thoughts. Email your Beyond the Horizon manuscript to David Paganie at davidp@pennwell.com.
Rethink.
Reinvent.
Reimagine.
SM
Discover the upside in this down cycle.

We are aggressively helping operators
reduce capital investments and improve
returns by transforming the way we all
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Talk to us today. Because its clearly
time for a change.
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