page EUROPE MARINER BRESSAY PROJECTS LOOK GOOD TO GO SCOTLAND AND NORWAY, FORGING EVER CLOSER OIL AND GAS LINKS

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1 PROJECTSOGP ProjectsOGP Magazine ONS Special Edition MARINER BRESSAY PROJECTS LOOK GOOD TO GO SCOTLAND & NORWAY, FORGING EVER CLOSER OIL & GAS LINKS HIGH HOPES FOR CLAIR RIDGE, WEST OF SHETLAND SKRUGARD & HAVIS FIELDS OFFER BARENT SEA BOOST FOR NORWAY

2 page EUROPE MARINER BRESSAY PROJECTS LOOK GOOD TO GO SCOTLAND AND NORWAY, FORGING EVER CLOSER OIL AND GAS LINKS HIGH HOPES FOR CLAIR RIDGE, WEST OF SHETLAND SKRUGARD AND HAVIS FIELDS OFFER BARENT SEA BOOST FOR NORWAY PROJECT UPDATES INTERNATIONAL SHALE GAS REVOLUTION GATHERS STEAM WORLDWIDE AFRICA PROJECT UPDATES MIDDLE EAST PROJECT UPDATES ASIA / OCEANIA GOVT CALLS FOR ACCELERATED CONSTRUCTION OF LNG TERMINAL GORGON GAS PROJECT GAINS MOMENTUM CHUANDONGBEI GAS PROJECT POSTPONED UNTIL NEXT YEAR PROJECT UPDATES NORTH AMERICA PROJECT UPDATES SOUTH AMERICA PROJECT UPDATES BUSINESS NEWS Editorial Staff Scott Clark Drew Robertson Mike Duguid Sally Whiteford Neda Djahansouzi Contributors Ian McInnes Tim Daiss ProjectsOGP Magazine is published by Red Mist Media Ltd Interkab House Links Place Aberdeen, AB11 5DY, UK Telephone: +44 (0) Fax: +44 (0) info@redmistmedia.com Any views expressed by contributors within this publication may not be the view of ProjectsOGP. While we make every effort to ensure accuracy, we assume no responsibility for errors, omissions or inaccuracies.

3 - Issue 36 - Page 3 FEATURED ARTICLE EUROPE PROJECTS Mariner Bressay projects look good to go. At the end of March 2011, influential industry body, Oil & Gas UK expressed its disappointment at Statoil putting a hold on its US$10bn plan to develop the Mariner and Bressay fields in the North Sea. The reaction of companies like Statoil in reappraising their investments is wholly expected following the sudden and therefore destabilising tax increase announced in the Budget, which results in producers paying between 62 and 81 per cent tax on UK oil and gas production, said Mike Tholen, Oil & Gas UK s economics director. However, in September 2011 Statoil presented the Mariner project to the media and said that Bressay was running 12 months behind it. After a period of uncertainty, I am proud to be able to say that we are back on track with the landmark Mariner and Bressay developments, said Peter Mellbye, Statoil s executive vice president for development and production international. The lead up Statoil acquired operatorship of the Mariner and Bressay fields in the latter part of 2007 and further strengthened its position in September 2010 when the company revealed that it has signed an agreement with Nautical Petroleum (Nautical) to acquire per cent of Nautical s interest in UK offshore licence P335 that includes the Mariner field. Statoil also says that it has an 81.6 per cent interest in Bressay and estimates that the two fields could contain 300m to 500m barrels of oil equivalent (boe). Mariner and Bressay Although Statoil says that its final investment decision will not be taken until late in 2012 the signs are good for the ultra-heavy oil projects. Both projects are located on the UK s continental shelf with Mariner being east of the Orkneys and Bressay to the south east of the isles; the company is projecting the first oil production during the latter part of 2016 and production above 2.5m barrels of oil equivalent per day (boe/d) in In total Statoil says it expects to invest US$10bn in Mariner and Bressay. Both projects will draw on Statoil s extensive heavy experience gathered from the successful development of the Grane field in Norway and the Peregrino field in Brazil and the company says that the Mariner field will require the application of pioneering technologies to address the challenges it will face regarding reservoir management, recovery rates and project execution. Furthermore, because of the low well flow rates and early water break through Statoil says that it will need many wells for production or injection, 145 reservoir targets are thus far planned for Mariner, although the company says that there will be a reduced number of well slots at the platform requiring multi-branch technology sidetracks and the reuse of slots. The Mariner project is front and centre with Statoil saying that it plans to transfer learning and synergies to Bressay. In its press briefing Statoil said that it has chosen a production, drilling and quarter (PDQ) platform based on a steel jacket with a floating storage unit (FSU). The company has estimated that the annual cost of operating both Mariner and Bressay will be around US$234m, including a strong Statoil drilling and operations office in Aberdeen. Current state of play While the official investment has yet to be made Statoil says that Aker Solutions (Aker) is performing the front end engineering and design (FEED) of the 26,000 topsides to treat 320,000 barrels per day (b/d) of liquids including 80,000 b/d of crude oil. In addition the company has selected Kvaerner with Heerema Fabrication Group, Daewoo Shipbuilding & Marine Engineering with CB&I, Hyundai Heavy Industries with WorleyParsons and Samsung Heavy Industries with KBR for competition for the engineering procurement and construction contracts. Statoil is currently looking at two concepts with its partner Royal Dutch Shell (Shell) for Bressay, one the same as Mariner the other, a floating production storage offloading (FPSO) with a wellhead similar to Statoil s offshore Peregrino development in Brazil. Constructive engagement with the UK Government over the last twelve months resulted in a tax change that improved the economic viability of the project Register at to access over 3000 global oil, gas & petrochemical projects

4 - Issue 36 - Page 4 EUROPE PROJECTS The North Sea continues to attract investment and will be a key provider of jobs and economic contribution for decades to come picture courtesy of Statoil Much needed jobs The initial impact on the north eastern Scottish economy with the opening of Statoil s office for Mariner was thought to be the addition of around 500 new jobs. However, this has lately seen to be somewhat conservative and the number of new jobs created could be closer to 1,000. These developments are a great example of how the North Sea continues to attract investment and will be a key provider of jobs and economic contribution for decades to come, said a spokeswoman for the Scottish government. The Scottish Government recognises the immense contribution oil and gas makes to Scotland s economy. With more than half of the value of the North Sea s oil and gas reserves yet to be extracted, oil and gas remain an enormous economic resource for Scotland s long-term benefit. Continued and sustained investment is needed in order to maximise recovery of the remaining 24bn barrels with a wholesale value of 1.5tn (US$2.34tn). On a local level Kevin Stewart, MSP for Aberdeen Central welcomes Statoil s initiative, The 6bn (US$9.35bn) investment by Statoil in the Mariner and Bressay fields is great news for Aberdeen and I am hopeful that this major development will provide a significant jobs boost and will help sustain our area s buoyant economy, said Stewart. Looking forward There will be an impact beyond the creation of high demand oil and gas professionals, The demand for design and construction engineers is high, said Graeme Fyfe, director of oil and gas in Hays Aberdeen. The Statoil announcement will mean greater opportunities for Aberdeen based oil and gas professionals, those professionals from outside the area will also benefit to help plug the skill shortages, said Fyfe. Looking more widely, professionals from other disciplines might also benefit as there are likely to be supporting roles in HR, accountancy, finance and legal. Tholen of Oil & Gas UK commented that, Constructive engagement with the UK Government over the last twelve months resulted in a tax change that improved the economic viability of the project. We are keenly engaged in ongoing Treasury-industry discussions so that any further changes to the tax regime can be made to the best effect in terms of the additional investment and UK jobs provided. Featured article by Ian McInnes Register at to access over 3000 global oil, gas & petrochemical projects

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6 - Issue 36 - Page 6 FEATURED ARTICLE EUROPE PROJECTS Scotland and Norway, forging ever closer oil and gas links photo courtesy of Statoil In May 2012, Scottish first minister, Alex Salmond visited a conference in Bergen in Norway as a part of wider trip to forge more business links between the two nations. Our engineering and manufacturing history is world-renowned. And, as a result of the last 40 years of North Sea oil and gas exploration, we now have particular expertise in engineering in hostile marine environments, said Salmond in his speech. Indeed, between Scotland and Norway, our countries probably know more about the waters around our nations than any other country on the planet from centuries of expertise in the fishing industry and half a century in oil and gas development. With most of the easy oil and gas gone, together, companies from the two countries are often combining their experience and resources to explore and exploit the oil and gas that will often be challenging to recover. Norwegian base for Global Energy Group The subsidiary of offshore engineering and fabrication specialist, Global Energy Group (GEG), Global Project Services (GPS) revealed from its Inverness base in May 2012 that GPS was opening a permanent base in Bergen. The Scottish government says that GPS has been working in Norway for seven years for several clients including, Statoil, Aker Solutions, Kvaerner and Fabricom Suez. Furthermore, the company has worked on major Norwegian projects such as, Hammerfest LNG (liquefied natural gas) plant, Statoil-Alstom Carbon Capture prototype at Mongstad, north of Bergen and the construction of semi-submersible drilling platforms for Aker. The company s Norwegian, Projects have utilised the managed services skills and expertise of our workforce, who have integrated and adapted to the professional and social standard required in Norway, to deliver quality and HSE (Health Safety & Environment) performance in support of contracts within the sectors and regions worked, said Gavin Macdonald, GPS managing director in a statement. It has become obvious to us to assist in the further development of our business to commit and invest in the opening of our office in Stord. The relationships we have built up over our time in Norway are very strong, our synergy and culture are similar, and the opening of our office highlights our commitment to further grow our business and quality of service to our Norwegian clients, said Macdonald. Register at to access over 3000 global oil, gas & petrochemical projects

7 - Issue 36 - Page 7 EUROPE PROJECTS Cairn Energy and Statoil, partners in the Arctic Edinburgh based Cairn Energy (Cairn) has been exploring in the Arctic over the last two years in a, to date, unsuccessful bid to find viable oil that has proved to be both costly and somewhat embarrassing. However, aside from other initiatives and acquisitions in the North Sea, in January 2012, the company said that Norwegian oil giant, Statoil was acquiring for an undisclosed sum a 30.6 per cent stake of Cairn s Pitu licence off Greenland. Cairn retains operatorship of the exploration phase, while Statoil will operate the licence should it be developed. With Statoil s long Arctic experience that has paid off with two recent major discoveries the partnership looks to make good business sense. In a statement, Nicholas Alan Maden, senior vice president in exploration international in Statoil said, We are looking forward to exploring this new frontier opportunity in Baffin Bay together with our partners and in close cooperation with the Greenland authorities. The new licence increases the optionality in our arctic portfolio. The first exploration period for Pitu expires at the end of 2014 and the licence is adjacent to Shell licences, Anu and Napu, where Statoil says that it has a working interest of around 20.1 per cent and 14.9 per cent respectively. More jobs in Scotland from Aker Solutions During Scottish first minister, Alex Salmond visit to Aker Solutions Oslo headquarters and just prior to the release of Scotland s oil and gas strategy in May, 2012, Aker announced plans to create another 500 jobs in Aberdeen. The new jobs are in addition to 300 new jobs announced last year, actually 350 now, and will add on to some 2,700 employees that Aker has working in the North East of Scotland. The company said that the expansion would be across the business including its subsea and drilling technology businesses, its MMO (modifications, maintenance and operations) business and its well intervention services business. We are experiencing activity growth in both the UK North Sea and international markets, said Aker s president and CFO, Leif Borge, Our objective is to provide an even better level of support to our customers, which will enable us to win more work and capitalise on the expected market growth. Hence we are investing in our operation in Scotland. Between Scotland and Norway, our countries probably know more about the waters around our nations than any other country on the planet from centuries of expertise in the fishing industry and half a century in oil and gas development Alex Salmond Oil and gas strategy Close neighbours, long term friends and in the dim and distant past, foes, Norway and Scotland both have considerable resources and expertise in oil and gas and especially offshore. Scottish firms have a presence in Norway and Norwegian firms have bases in Scotland and companies from the two nations often work together. With the North Sea still rich in oil resources and the opening up of the Arctic both countries oil and gas industries and with them the nations themselves can prosper much. It is little wonder that Scottish first minister, Alex Salmond chose to go to Norway just before launching a new oil and gas strategy. Headlines for the strategy include boosting Scotland s domestic supply chain to sales of around US$46.8bn by 2020, boost the export proportion of those sales to 60 per cent by 2020 and to continue to promote, encourage and identify opportunities. Over four decades, 40 billion barrels of oil equivalent (boe) have been recovered from the North Sea, delivering 300 billion (US$467.7bn) in revenues to the UK Government, said Salmond. The wholesale value of reserves remaining to be extracted is estimated to be up to 1.5 trillion (US$2.34tn). Norway s management and use of the income derived from its oil and gas industry are widely admired and, perhaps with a clear eye on independence, Scotland may, while working closely with its neighbour, seek to emulate Norway s achievements and its sovereign wealth fund. article by Ian McInnes

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9 - Issue 36 - Page 9 FEATURED ARTICLE EUROPE PROJECTS High hopes for Clair Ridge, West of Shetland. The presence of heavy oil in the Clair field around 75km west of the Shetland Isles was discovered in BP Exploration operated the field and has the largest share of the joint venture with a little over 26.6 per cent, Britoil plc (BP) has 0.98 per cent), ConocoPhillips (UK) Ltd.) around 24 per cent, Chevron North Sea Ltd. around 19.4 per cent, Enterprise Oil Ltd. (Shell) has approximately 18.7 per cent and Shell Clair UK Ltd. has nearly 9.3 per cent. With BP estimating that the entire Clair field could hold some seven billion barrels of oil equivalent it is no surprise that the 220 square kilometres that make up Clair is front and centre for so many leading oil companies. The heavy oil in Clair can be accessed in water ranging up to 140m deep however, there is uncertainty because of the complex and fractured nature of the reservoir as to just how much of the seven billion barrel bonanza could realistically be recovered. Clair Phase 1 There was easier oil to recover in 1977 and it wasn t until 2001 that the first development phase, Clair Phase 1, was sanctioned. BP said that using a single fixed platform with production and process topsides facilities, supported by a steel jacket and associated oil and gas export facilities it commenced production in February 2005 and so far has produced 80 million barrels (mmbbl). The company expects first phase facilities to continue producing until 2028 and one of the largest oil terminals in Europe, Sullom Voe terminal on Shetland, processes the upstream oil and gas feeding into it from the Clair field for further use along the downstream chain. Register at to access over 3000 global oil, gas & petrochemical projects

10 - Issue 36 - Page 10 FEATURED ARTICLE Clair Ridge Targeting the area of the Clair field to the north of Clair Phase 1, Clair Ridge represents phase 2. In October 2011, in a highly publicised announcement, BP and its partners revealed that approval had been given by the UK government to proceed with Clair Ridge triggering an investment of nearly US$7bn. Including the investment share with three other North Sea projects totalling some US$15.5bn, BP s share of approximately US$6.2bn represents its highest annual investment ever in the North Sea; BP says that around 650 people are already employed at Clair Ridge s London headquarters. Although it began over forty years ago, the story of the North Sea oil industry has a long way yet to run. BP has produced some five billion barrels of oil and gas equivalent so far from the region and we believe we have the potential for over three billion more, said BP s group chief executive Bob Dudley in a statement. After some years of decline, we now see the potential to maintain our production from the North Sea at around 200, ,000 barrels of oil equivalent a day (boe/d) until And we are working on projects that will take production from some of our largest fields out towards BP said that it would install two new bridge linked platforms for Clair Ridge that will have the capability to produce an estimated 640mmbbl; production should be onstream in 2016 with BP planning to extend production from more of the Clair field to Aside from the jobs already created, the company says that it expects to see hundreds more engineering, drilling and oilfield services positions created and maintained during the working life of the Clair field. Taking all of the announced North Sea new investment projects together, BP estimated that the existing 3,500 workers could almost double when the project s peak. The development of the West of Shetland oil and gas fields cements Shetland at the geographic heart of the 21st century energy production, said Tavish Scott MSP for Shetland. Clair Ridge is a vital component of this work and the offshore and onshore jobs created in the one bright part of the UK economy are very welcome at this tough economic time. Engineering BP says that the engineering facilities for Clair Ridge, comprising of a drilling and production (DP) platform and a quarters and utilities (QU) platform, are being delivered by AMEC and Rig Design Services (RDS) with the new facilities being tied into the existing infrastructure on the Shetlands with an additional provision on the DP platform for subsea tiebacks in the future. The company says that approximately 30 per cent of the US$3.25bn cost base of the project, EUROPE PROJECTS The development of the West of Shetland oil and gas fields cements Shetland at the geographic heart of the 21st century energy production Tavish Scott MSP including all engineering, project management and a substantial portion of the topsides equipment is being spent in the UK; contracts for platform jackets and platform topsides have been awarded to Aker s Verdal yard in Norway and Hyundai Heavy Industries respectively. Subsea contracts for 500 tonnes of subsea structures are to be built too and Aberdeen based Subsea 7 has been contracted by BP to for the engineering, procurement, fabrication and installation of a 6km long oil export pipeline and a 14km long gas export pipeline to run between the new Clair Ridge production facilities and the existing Clair Phase 1 infrastructure to facilitate the transportation of product to Sullom Voe Terminal on Shetland. Technology Efficient and enhanced heavy oil recovery means the deployment of technology. In the case of Clair Ridge BP has said that it would be using advanced LoSal low salinity water reservoir injection capability. This, says BP, will be the first time that the technology has been deployed offshore. Also known as low-sal flooding, the technique has been known for around 20 years and BP has been studying the method, collecting data and extensively testing it in field applications. However, the proof of the pudding for LoSal and perhaps for Clair Ridge itself is just how much oil can be extracted from the massive reserve. More to come Alongside the Clair Ridge announcement BP and its partners also revealed that they had carried out a successful appraisal of an extension to the Clair field, South West Clair. The companies confirmed that the appraisal well found a, significant new hydrocarbon column in an overlying reservoir horizon, further development of the Clair field could well be on the cards. article by Ian McInnes

11 - Issue 36 - Page 11 FEATURED ARTICLE EUROPE PROJECTS Skrugard and Havis fields offer Barent Sea boost for Norway. The Skrugard and Havis fields, both recent discoveries in the Barents Sea on the Norwegian continental shelf, offer considerable potential, albeit somewhat challenging in what can be harsh Arctic conditions for operator, Statoil ASA (Statoil) and its joint venture partners. Statoil, as operator of both fields, has a 50 per cent stake in both prospects with Eni Norge AS (Eni) and Petoro AS (Petoro) making up the remaining 30 per cent and 20 per cent respectively. Nonetheless, the Statoil s long term view of the Barents Sea including over three decades of exploration leading to a deep understanding of the area may just pay off for all concerned. Skrugard In April 2011, Statoil declared that it made a significant discovery in the Barents Sea. Indeed, the company hailed it as, One of the most important finds on the Norwegian continental shelf in the last decade. The Skrugard prospect is located around 100 kilometres north of the Snøhvit gas field in the Barents Sea. Transocean s Polar Pioneer rig drilled the well (wellbore 7220/8-1) from which Statoil reported that the estimated volume of recoverable oil could be between million barrels of oil equivalent (mmboe) and the company also considered that opportunities for upsiding the licence may push that total to 500mmboe. In a statement, Tim Dodson, Statoil s executive vice president for exploration said, The Barents Sea is large, and we cannot say that we have cracked the code for the entire area yet. But we have confirmed that our exploration model is correct. This is a break-through, and an important step in understanding how the geology and thus the hydrocarbon systems in the Barents Sea works. Havis Statoil was granted its drilling permit for Havis (wellbore 7220/7-1 in the Barents Sea) in December Just one month later and the company was reporting that a 2,200 metre deep well drilled in 365 metres of water by the drilling rig Aker Barents had proved a 48 metre column of gas and a 128 metre column of oil. Statoil said that the oil volumes in the column were between barrels (bbl) of recoverable oil and further estimated that Havis could yield between 200mmboe and 300mmboe pushing Skrugard and Havis together to a possible upward ceiling of 600mmboe and a lower estimate of 400mmboe. Havis lies 7 kilometres to the southwest of Skrugard and Statoil says that it is an independent structure with no communication between the discoveries. Havis is our second high impact discovery in the Barents Sea in nine months, said Statoil s president and CEO, Helge Lund in a statement. The discovery s volume and reservoir properties make it Skrugard s twin. Skrugard and Havis open up a new petroleum province in the north. Cracking the code Now is the time to start to prove the estimates for the Skrugard and Havis fields and in June 2012, Aker Solutions ASA (Aker) said that it had been awarded the early phase studies for the Skrugard and Havis fields in the Barents Sea and also the Johan Sverdrup discovery in the North Sea. For the Skrugard and Havis fields, Aker is performing a concept study, while the Johan Sverdrup field development will be subjected to feasibility and screening studies. The development in the Barents Sea really hits the core of our competence, with floating installations in a harsh and arctic environment, said Henning Østvig, senior vice president of front end and technology in Aker Solutions in a statement. Aker employs around 25,000 people worldwide; over a quarter of those is the expanding subsea sector. And, in mid July 2012, Aker said that it had acquired, for an undisclosed sum, Norwegian companies, Subsea House and SSH Engineering from Subsea Holding. The two companies already employ around 40 people and Aker declared that it would be looking to further expand the businesses, recruiting between 50 and 100 more employees along the way. Aker s new acquisitions, which are expected to be completed during the third quarter of 2012, have a state-of-the-art subsea facility in Stokke, southwest of Oslo that is designed for testing of subsea products, systems and tools. Impact of Skrugard and Havis The Havis discovery boosts the development of Skrugard as a versatile new centre with processing and transport capacity. We are about to realise the Barents Sea as a core area on the Norwegian continental shelf, said Statoil s vice president Register at to access over 3000 global oil, gas & petrochemical projects

12 - Issue 36 - Page 12 FEATURED ARTICLE for Skrugard development, Strand Tellefsen. The Skrugard and Havis discoveries will be important for industrial development and will further boost activity in the supplier industry, providing new jobs and generating spin-off effects throughout the region, said Lund. Those spin offs are already occurring for although Aker is based in Oslo it has opened an new engineering office in Tromsø that will be participating in the concept study for Skrugard and Havis which has already started. The establishment of the Tromsø office is part of Aker Solutions overall strategy to increase our footprint in the northern regions of Norway, driven by the increasing number of interesting field development opportunities offshore Northern Norway and in the Barents Sea, said Østvig. Another example in what it described as a milestone contract for Tromsø based Troms Offshore Supply (Troms Offshore) when it said in June 2012 that it had EUROPE PROJECTS entered into a contract for an undisclosed sum for the operation of a newbuild Platform Supply Vessel (PSV). The 94.5m long vessel is set to be delivered towards the end of 2013 and Troms Offshore has a firm contract for three years with three additional one year options. Mårten Lunde, CEO of Troms Offshore Supply said, This is a milestone contract for Troms Offshore in developing a high quality shipping group based in northern Norway with large, modern clean design platform supply vessels. Impact of Skrugard and Havis The whole of northern Norway and especially the city of Hammerfest, around 200km from Statoil s discoveries, which has been described as the new Stavanger, looks set to benefit substantially but will also have to adopt and adapt to the boom times to come. However that is possibly a better challenge to have to face than the deep economic gloom that is overshadowing much of the rest of Europe. article by Ian McInnes

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15 - Issue 36 - Page 15 EUROPE PROJECTS North Sea Cygnus Field The Cygnus field, the largest discovery in the Southern Gas basin in the last quarter century, is located 150 kilometres off the coast of Lincolnshire, with estimated gross reserves of about 18 billion cubic metres. Production at Cygnus is expected to start in November Once it has reached peak production in 2016, it will meet the demand for nearly one and a half million UK homes, and account for around five per cent of the UK s gas production. The detailed development plan calls for two drilling centres, four platforms and initially 10 development wells. The planned export route is through the ETS (Esmond Transportation System) pipeline system to the Bacton gas terminal in North Norfolk. GDF Suez operates with a 38.75% stake, with Centrica on 48.75% and Bayerngas on 12.5%. GDF Suez and partners have awarded US$590 million worth of contracts for Cygnus Field The partners developing the US$2.2 billion Cygnus gas project in the UK North Sea gave the official thumbs up on Tuesday 7th August 2012 as contracts for the development start rolling out. Operator GDF Suez, alongside partners Centrica and Bayerngas, awarded US$590 million in initial contracts and had also been signed for the development of the sixth largest gas field in the UK Southern North Sea. Among the contract winners were Heerema Fabrication Group and Bifab. Heerema would fabricate the topsides of three platforms, including a 3,500 tonne process and utilities deck, while Bifab would build the jackets plus a 2,500 tonne living quarters module. Saipem will take care of the export line, while Seaway Heavy Lifting has also won a contract to transport and install the platforms and subsea structure. The partners are said to be eyeing the Ensco 80 jack-up rig for drilling. The Cygnus development is expected to create 300 engineering jobs. AMEC lands US$94 million detail design contract for GDF SUEZ s Cygnus field in North Sea AMEC has been awarded a detailed design contract for GDF SUEZ E&P UK Ltd s Cygnus gas field development. The detail design contract follows on from the FEED (front-end engineering and design) work and is valued at an estimated US$94 million. This latest detail design phase, which starts immediately, is scheduled for completion in The contract will create almost 200 new jobs at peak, and will safeguard a further 160 who are already part of the London-based team. Ilk Construction to win second contract worth US$77.5 million from Petronas for phase two development of Block one Ilk Construction is set to win a second contract from Petronas for phase two development of Block one gas project off Turkmenistan, after clinching a deal of US$77.5 million for the West Dyarbekir wellhead platform. A joint bid from Ilk and Marine Heavy Engineering won the contract, while Petronas expects to start production in The new deal includes procurement, engineering, hook up and commissioning as well as tie-in for the Diyarbekir field to the facilities in the Magtymguly field. The company will also probably undertake the modification of the Magtymguly collector riser platform-a (MCR-A), the floating storage and offloading unit as well. Baker Hughes lands integrated drilling services contract for 25 fields Baker Hughes has been awarded an agreement with Statoil to provide integrated drilling services for 25 fields on the Norwegian continental shelf (NCS). The agreement with Baker Hughes will cover the delivery of directional drilling, measurement-while-drilling, logging-whiledrilling, mud logging, including 24/7 onshore support and drilling engineering services. The integrated drilling services will be performed on the installations Brage, Dagny, Eirin, Grane, Heidrun TLP, Heidrun SS, Kristin Kvitebjørn, Njord, Norne, Morvin Oseberg B/C/ Sør, Oseberg Øst, Sleipner, Skuld, Snøhvit, Tyrihans, Troll, Volve, Vega, Veslefrikk, Aasta Hansteen and Åsgard. Work under the contract will commence in third quarter of Register at to access over 3000 global oil, gas & petrochemical projects

16 - Issue 36 - Page 16 EUROPE PROJECTS Aker wins ExxonMobil frame agreement ExxonMobil has awarded Aker Solutions a frame agreement covering the engineering, procurement, construction and installation for its operated assets on the Norwegian Continental Shelf. Aker did not disclose the contract value but said it would cover ExxonMobil s Balder, Jotun A, Jotun B and Ringhorne assets. We are very proud to be chosen by ExxonMobil to undertake this work on the Norwegian continental shelf, says Tore Sjursen, head of maintenance, modifications and operations in Aker Solutions. This agreement ensures a great deal of predictability for Aker Solutions, Sjursen adds. The agreement will run for a fixed five year period, from 2012 to 2017, and carries options for two additional five year periods. Aker will manage the frame agreement from its office in Stavanger, Norway. Reinertsen lands three EPCI contracts worth US$188 million by Statoil Reinertsen has been awarded a haul of contracts worth a total of US$188 million for work on Statoil operated fields, including the proposed Svalin fast track project in the North Sea. The three engineering, procurement, construction and installation contracts cover modification and upgrade work on the Grane, Heimdal and Heidrun platforms, off Norway. Work on Grane covers modification of the platform s gas processing facilities to handle future output from Svalin C, which will be exploited as a subsea satellite field under a development plan submitted to the Oslo authorities last week. The Grane job has a value of approximately US$75 million including an option for more work. Reinhertsen has also gained a US$50 million contract on Heimdal for removal of 1,000 tonnes of drilling equipment and installation of new lifeboat ramps as part of Statoil s project to extend the lifetime of the veteran field for processing of output from surrounding fields. The third deal, worth US$61.5 million, covers installation of a new compressor and oil and water pumps, as well as other equipment, at the Heidrun platform in the Norwegian Sea as part of upgrade work for low pressure separation to offset falling reservoir pressure and increased water production. The latest contracts with Statoil come on the heels of the award for Reinertsen of recent long term framework agreements with Shell and Det Norske Oljeselskap, off Norway that have spurred expansion at the Trondheim based contractor, which is recruiting 300 new engineers in The deal with Shell, worth as much as US$166.2 million, will see Reinertsen acting as the main architect for Shell s subsea projects. The contractor will provide project services for both subsea and surface facilities under its contract with Det Norske. Aker Solutions secures studies on key Norway fields Aker Solutions has secured awards from Statoil for early phase studies on two major upcoming field developments off Norway; Johan Sverdrup in the North Sea and the combined Skrugard-Havis scheme in the Barents Sea. The Norwegian engineering contractor will carry out a concept study on joint development of the breakthrough Skrugard and Havis discoveries, with estimated total recoverable resources of 400 million to 600 million barrels, which is targeted to come on stream in The concept study for Skrugard-Havis will be performed at Aker s new engineering office in Tromso in northern Norway, as the industry moves northwards to take advantage of emerging work opportunities in the Barents frontier region. These projects have been amongst our main target projects for 2012, so we are extremely pleased that we have won the contracts, says Henning Østvig, senior vice president of front end & technology in Aker Solutions. The development in the Barents Sea really hits the core of our competence, with floating installations in a harsh and arctic environment. And of course we are enthusiastic to be part of the development of one of the largest oil field discoveries on the Norwegian continental shelf ever - the Johan Sverdrup field, says Henning Østvig. The contractor has also won a feasibility and screening study for the giant Johan Sverdrup find in the mature North Sea, where resources are presently estimated at between 1.7 billion and 3.3 billion barrels of oil equivalent with production start-up in the fourth quarter of SNC-Lavalin awarded Statoil s North Sea Bressay jacket FEED contract SNC-Lavalin has been awarded a contract by Statoil ASA to carry out the FEED (front-end engineering design) for an approximately 20,000 tonne substructure, part of the Bressay offshore development located in the UK sector of the North Sea. The jacket will be located at a water depth of approximately 92 metres, and support operations for up to 50 wells, which will feed a large production, drilling and quarters (PDQ) topside facility. Bressay s heavy oil will be exported to a nearby floating storage unit before being shipped to market by shuttle tanker. Statoil expects a final investment decision in late 2013 and first oil by early Register at to access over 3000 global oil, gas & petrochemical projects

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18 - Issue 36 - Page 18 EUROPE PROJECTS Subsea 7 S.A. awarded US$400 million EPCI contract offshore Norway Subsea 7 S.A. has been awarded of a SURF contract valued at approximately US$400 million from BG Norge Limited, for the development of the Knarr field, in the Norwegian Sector of the North Sea. The contract is for the engineering, procurement, construction and installation of a 4.5 kilometre flowline bundle containing production, water injection and service lines and controls system, a standalone water injection flowline, flexible riser systems, the static and dynamic umbilicals systems, as well as various subsea structures, associated tie-in spools and GRP protection covers and the connection and testing of the complete subsea architecture. In addition, the contract is for the transport and installation of one production and one water injection template, and the associated manifolds and protection structures. Engineering and procurement activities will commence immediately with offshore operations planned from summer 2013 until spring Technip secures contract for EnQuest s Alma and Galia development in UK North Sea award Technip was awarded by EnQuest Britain Limited a contract for the development of the Alma and Galia fields, located 310 kilometres southeast of Aberdeen, United Kingdom. The fields, which will be tied back to the EnQuest Producer FPSO (floating production storage and offloading) unit, are located at a water depth of approximately 80 metres. The contract covers, installation of two ten inch production flexible flowlines, one eight inch water injection flexible flowline and one further eight inch production flexible flowline, installation of three eight inch flexible risers, installation of two production control umbilicals/risers, installation of four power cables and associated dynamic risers, procurement, fabrication and installation of a 175 tonne manifold structure, and associated trenching operations, tie-ins, testing and commissioning. Technip lands EPIC contract by Marathon Oil Technip was awarded a contract by Marathon Oil Norge AS for on-going expansion of the subsea drill centres at Kneler B and Volund located in the Alvheim area in the North Sea. The water depth in the area is around 120 metres, and the subsea work will be performed by use of remotely-operated vehicles as well as by divers. The contract includes engineering, fabrication, installation and diving tie-ins of pipeline spools, including protection covers and installation of a manifold. Technip s operating centre in Stavanger, Norway will execute the contract. The offshore construction work will take place in 2012 and The Skandi Arctic, a diving support vessel from Technip s fleet, will be used for the offshore campaigns. Technip awarded substantial EPIC subsea contract in North sea Technip was awarded by Ithaca Energy (UK) Ltd an engineering, procurement, installation and construction (EPIC) subsea contract for the Greater Stella Area (GSA) development, located 280 kilometres East-Southeast of Aberdeen, Scotland at a water depth of approximately 90 metres. Ithaca Energy (UK) Ltd is developing the GSA, centred on the Stella and Harrier fields as a standalone development utilising its own floating production vessel. The contract covers, detailed design and pipelay of a 33 kilometre ten inch oil export and 63 kilometre ten inch gas export pipeline to the production platform. Technip s operating centre in Aberdeen will execute the contract, which is scheduled to be completed in the second half of Genesis, Technip s consultancy subsea and offshore engineering company, will complete the detailed design workscope and flexible flowlines will be manufactured at Technip s flexible pipe plant in Le Trait, France. Meanwhile, Technip s Evanton Spoolbase, near Inverness, Scotland will fabricate the linepipe and DUCO, the group s umbilical manufacturer in Newcastle, England will provide the umbilicals. Vessels from the Technip fleet will be used for the offshore campaign, including the Skandi Arctic and the Wellservicer. Register at to access over 3000 global oil, gas & petrochemical projects

19 - Issue 36 - Page 19 EUROPE PROJECTS North Sea Draugen Field The Draugen field is located in the Norwegian North Sea at a water depth of 250 metres and was discovered in 1984 with recovery starting in October of Situated in block 6407/9 of the Haltenbanken area, the field lies within production licence PL093, approximately 140km from Kristiansund, Norway. Lying at a depth of 1,600 metres, the main reservoir has an oil column of 40 metres and, at the time of discovery, it was estimated that Draugen held 400 million barrels of oil. Since initial production, additional investment has extended the life of Draugen until 2024 with a program involving both in-fill drilling on the main reservoir and the development of fresh reserves discovered at the Garn West and Rogn South reservoirs. Consequently, reserves of the field have increased to an estimated 700 million barrels of recoverable reserves. Installed in 1993, the Draugen platform is fixed on a single column, consisting of a concrete shaft with integrated topside decks. With a production capacity of approximately 140,000bpd, the platform is connected to the Garn West reservoir by a 3.3km-long pipeline. The pipeline laid via the Garn West reservoir then connects the Rogn deposit to the project platform. Norske Shell serves as operator with a 26.20% stake in Draugen, with Petoro (47.88%), BP Norge (18.36%) and Chevron (7.56%) holding the remaining interest. Ocean installer awarded EPC manifold contract to EAB Engineering EAB Engineering have been awarded an engineering, procurement and construction (EPC) manifold contract from Ocean Installer. EAB s scope of work includes the design and delivery of a Tee manifold, with an estimated total weight of 110 tons, to be installed in the summer of Additionally, the contract includes the procurement of all valves, piping and structural steel. The Aker subsea hubs and a Multi Phase flow meter will be supplied from the client as CPI. EAB Engineering s contract win comes as a result of Shell s substantial upgrade and investment in Draugen intended to increase the production life time of the field by expanding with a subsea pumping facility. Furthermore, the award extends their cooperation with the operator from earlier projects such as Ormen Lange. Hertel wins Draugen ALQ contract from Shell Hertel Offshore has signed a contract for the engineering, procurement and construction (EPC) delivery of the Shell Draugen Additional Living Quarter. The Living Quarter will accommodate 44 people and will be designed according to the Norsok standards. With an immediate project start, delivery of the module is scheduled for May 2013 and construction will be completed at the Hertel Offshore premises in Rotterdam, The Netherlands. Bergen Group lands a US$57 million award from ConocoPhillips for Ekofisk Bergen Group has landed a US$57 million award from ConocoPhillips to carry out modification work at the US operator s Eldfisk project off Norway. Bergen Group Rosenberg division will carry out modifications and replacement of the waste heat recovery unit on the Eldfisk 2/7E platform in the North Sea under the engineering, procurement, construction and installation contract. Onshore activities will be carried out at the Stavanger yard starting in 2012 while offshore work will be performed in 2013, with final delivery targeted for the fourth quarter of The award is part of a frame agreement signed by the group with ConocoPhillips in 2009 for wider modification work in the Ekofisk-Eldfisk area. Register at to access over 3000 global oil, gas & petrochemical projects

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21 - Issue 36 - Page 21 FEATURED ARTICLE INTERNATIONAL Shale gas revolution gathers steam worldwide The shale gas revolution in the U.S. and Canada is spreading worldwide. The newest to join the unconventional gas club is China and Brazil. In addition Algeria is in advanced talks with Exxon Mobil and Royal Dutch Shell as it looks forward to assessing the extent of its shale gas potential. Discoveries of enormous shale gas deposits have also recently been found in offshore East Africa and the Caspian Sea. So far, China has played its cards wisely, albeit conservatively. Since March s shale announcement, China has held two shale gas-bidding auctions but both were closed to foreign firms. The only deal between China and a foreign firm so far is a Royal Dutch Shell and China National Petroleum Corporation (CNPC) partnership that will develop shale gas blocks in the southwestern province of Sichuan. While in the last two years, one time energy anemic Israel, also announced massive gas discoveries. Noble Energy, the main operator for the Israeli discoveries, announced in April that it will meet and even beat production forecasts in April 2013 from the Tamar field, Israel s second largest discovery. At least one platform allocated for Tamar is projected to eventually produce 1.2 billion cubic feet (Bcf) per day. Consequently, Israel will evolve into being a major LNG exporter. All of these discoveries will be game changers both geopolitically and most importantly financially, bringing massive amounts into government coffers. Shale gas discoveries in China could rival and surpass North American gas deposits while Brazil on the other hand is just waking up to the realities of shale gas. Innumerable reports have suggested that China is sitting on the world s largest technically recoverable shale gas reserve. Chinese shale gas estimates will be sufficient for the next 60 years at the current Reserve to Production, according to a June 20 report by Research & Markets. However China doesn t posses the fracking technology at this stage to develop its shale gas, so it has to either buy the technology, possibly from the U.S. which possess the world s best fracking technology, acquire the technology in an acquisition or partnership with a Western company or develop its own. Likely, given China s need for gas and specific time constraints, they will enter in more joint partnerships with American and Canadian companies to acquire the needed technology. Not that China has to court Western companies, they are lining up to talk to the Middle Kingdom. On July 20 the China Daily reported that the French oil company Total SA is very interested in the exploration for shale gas that is now taking place in China and is talking with China s Sinopec. Other companies are also jockeying in position to try to enter China s shale gas sector. Of course China -- which relies on gas imports, and is currently trying to finish its oil and gas pipelines in Myanmar by 2013 although under an intense backlash of negative PR from human rights and environmental groups in Myanmar and abroad -- will most assuredly utilise its resources, once they are online, for domestic purposes. Other challenges remain for China s nascent shale gas sector. According to Chinese energy experts, tough geographical conditions, lack of pipeline infrastructure and putting governmental policy into place are additional hurdles that must be addressed. Yet, China s insatiable need for hydrocarbons and the government s history of securing the resources it must have to fuel its still rapidly growing economy dictate that China will step up to the plate and deliver. The stakes are simply too high to do otherwise. According to the Chinese Ministry of Land and Resources China has Tcm or (886 trillion cubic feet) of exploitable onshore shale-gas reserves. The resources are part of an estimated Tcm of total reserves of the gas in the country. Shale gas has been discovered in 880,000 square kilometres (340,000 square miles) of exploration blocks that contain Tcm of the fuel that can be extracted. If juxtaposed with China, Brazil also one of four BRIC countries -- seems to be waffling in regard to developing it shale resources. Notably, their shale gas deposits aren t as vast as China s but the emerging South American giant has a long way to go. On June 14 Bloomberg reported that Cia Energetica de Minas Gerais, Brazil s largest electricity company by market value, is betting shale gas will help it triple fuel sales by Chief Financial Officer Luiz Fernando Rolla said that his company is seeking U.S. partners with experience in drilling shale gas to help develop four Register at to access over 3000 global oil, gas & petrochemical projects

22 - Issue 36 - Page 22 FEATURED ARTICLE blocks in Minas Gerais state. Rola said that the outlook for shale gas is very positive and that natural gas is still very underdeveloped for Brazil and could be a great growth driver for the company. According to The Brazilian National Agency of Petroleum, Natural Gas and Biofuels (ANP), the country s oil and gas regulator, Brazilian gas output, which reached 66.2 million cubic meters per day in March, increased 72 percent between 2001 and Brazil is committed to developing its shale-gas resources, which could be some of the largest in Latin America, but production will likely be slow to come, said Marco Antonio Almeida, the secretary of fuels at Brazil s energy ministry. His comments were made at a development meeting with visiting officials from the International Energy Agency (IEA) last week. Producing unconventional gas requires investment in infrastructure and equipment. Moreover, it is also a challenge to show Brazilian society that unconventional gas and oil have more benefits than problems. That work is largely ours, he said, adding production would take a little longer to become reality. INTERNATIONAL To date no companies have announced commercial shale gas production so far in Brazil. Other gas discoverers are being found in Brazil. Mines and Energy minister Edison Lobao recently stated that Brazil has found reserves to ensure self-sufficiency in the coming five years. The ANP disclosed that Brazil has natural gas reserves on land, which can increase supply by 360% in the coming decade. Last year the U.S. Energy Information Administration (EIA) released a major report assessing the potential for shale gas development in 48 basins in 32 countries around the world. The United States leads the world with Tcf of proved natural gas reserves, followed by Algeria (159 Tcf), Australia (110 Tcf), China (107 Tcf), Canada (62 Tcf), India (37.9 Tcf), Argentina (13.4 Tcf), Brazil (12.9 Tcf), Mexico (12 Tcf), United Kingdom (9 Tcf), and Poland (5.8 Tcf). However, China leads the world in technically recoverable shale gas resource at 1,275 Tcf, the U.S. (862 Tcf), Argentina (774 Tcf), Mexico (681 Tcf), South Africa (485 Tcf), Australia (396 Tcf), Canada (388 Tcf), Algeria (231 Tcf), Brazil (226 Tcf), Poland (187 Tcf), France (180 Tcf), India (63 Tcf), and the United Kingdom (20 Tcf). ENGINEERING PLASTIC SOLUTIONS

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24 - Issue 36 - Page 24 AFRICA PROJECTS AGR lands well management contract offshore Tunisia AGR has been awarded a well management contract from Cooper Energy Tunisa Bargou (CTEB). This will see AGR perform the planning, execution and post drilling activities for a one well program in the Gulf of Hammamet, offshore of Tunisia. Sverre Skogen, AGR s CEO, commented: This is a significant win for AGR. Planning work has now commenced out of our Dubai office and once this is complete an operations team will move to the on-site project base prior to the well spudding later this year. We look forward to supporting CETB in achieving their desired results in a location where we have been successful in the past. This activity complements another contract win offshore of Tunisia which will see us perform a drilling feasibility study for five wells on behalf of an energy investment company, placing us as a strong, reputable player in this region. Apache secures rig to drill Mbawa prospect Apache has secured the use of the deepwater drillship Deepsea Metro 1 (UDW drillship) to drill the Mbawa prospect. The operator is anticipating a spud date within the third quarter of 2012, pending on when the rig finishes with its current operations. The well is expected to take about 45 to 60 days to complete to a planned total depth of 3,250 metres in a water depth of 860 metres. It is estimated that Mbawa has a maximum potential to contain 4.9 billion barrels of oil at the main Tertiary/Cretaceous level with significant additional potential also to be tested by the well at the deeper Upper Jurassic level and shallower Tertiary levels. Bid documents released for the Moho Nord Marine project Total has issued bid documents to contractor groups aiming to supply it with a floating production unit for its Moho Nord Marine project. Samsung Heavy Industries, Hyundai Heavy Industries and Daewoo Shipbuilding and Marine Engineering are vying to land the FPU (floating point unit) order which has been divided to two parts including one for the hull and living quarters and one for the remaining topsides. The contract is lined up for the first quarter of By the end of May 2012 the company will invite four companies to submit their commercial bids. The companies are, Floatec, DSME, SHI and HHI with Doris Engineering. Aveon to supply subsea components for Bonga NW in a deal worth US$30 million FMC Technologies has subcontracted Aveon Offshore to fabricate components for the subsea production system for Shell s Bonga North West project offshore Nigeria. Aveon s US$30 million contract involves structural steel procurement, fabrication, and load-out of around 1,000 tons of subsea structures, including two four-slot production manifolds with associated suction piles, well jumpers, tubing head frames, christmas tree ROV panels, and control system elements. The company, formerly known as Grinaker-LTA Construction Nigeria, will execute this program at its 240,000 square metre fabrication yard in Rumuolumeni, near Port Harcourt, generating more than 200,000 man hours of work. Load-out and sail-away of the manifolds for offshore installation is scheduled for March To fulfil some of the project requirements, Aveon has acquired equipment including a horizontal boring machine, funded by Shell as part of its Nigerian Content development initiative. CGGVeritas awarded Angola 4D seismic deal CGGVeritas has scooped a five year contract from compatriot Total and Sonangol for 4D seismic work offshore Angola. The company will process more than 6,000 square kilometres of seismic data tracking five Total operated deepwater fields over the contract period, namely Girassol/Jasmim, Rosa, Dalia/Camelia, Pazflor, and CLOV. Sonangol is the concession holder for the Angolan offshore Block 17 containing the fields being explored by Total in partnership with Statoil, BP and Esso. The scope of the works includes 4D seismic processing and imaging of all annual and biennial monitor surveys planned at the block. The project will use the Hampson-Russell proprietary global 4D elastic inversion product, StratiSI 4D Philippe Doyen, Vice President, R&D, Hampson-Russell Services, said: Having proved this technology in the North Sea, this is an important opportunity to apply it in West Africa. With the increasing number of 4D vintages available over producing fields, global 4D inversion is better constrained and yields results that are more readily interpretable in terms of production effects. In particular, it can provide quantitative estimates of reservoir properties, such as fluid saturation, with more certainty and capture the movement of fluids and changes in pressure with greater accuracy. Register at to access over 3000 global oil, gas & petrochemical projects

25 - Issue 36 - Page 25 AFRICA PROJECTS Hyundai ahead in battle worth US$2.5 billion to supply FPSO for Egina project Hyundai Heavy Industries, Saipem and FMC technologies are emerging as three leading contenders to secure the floating production vessel and subsea contracts for Total s multi-billion dollar Egina project off Nigeria. The contract value is likely to be US$2.5 billion. McDermott lands a design, engineering and procurement deal and a components fabrication contact for the Etane platform McDermott has landed a design, engineering and procurement deal off Gabon and a components fabrication contact in the deepwater Gulf of Mexico. The company has landed a design, engineering and procurement management contract from Vaalco for the Etane platform, and a design engineering contract for a potential Southeast Etame / North Tchibala (SEENT) platform. The new oil and gas wellhead production platform or platforms will be located in the Etame Marin block off the coast of Gabon, with detailed engineering already underway at McDermott s Houston engineering office. Saipem won an EPC contract for the Otumara-Saghara-Escravos pipeline Saipem has won a contract from Shell to engineer, design and construct the 40 kilometre Otumara- Saghara-Escravos pipeline in Nigeria s Niger Delta. The works for SPDC (Shell Petroleum Development Company) included engineering, procurement, fabrication and commissioning for a network of pipelines. The project is expected to be completed within 18 months. Sasol secures new wildcat drill contract off Mozambique Sasol Petroleum International is gearing up to drill a wildcat off Mozambique in August The company has secured a jackup with a view to spudding a probe on the Mupeji prospect in Block M-10. The Mupeji-1 well is expected to target a structure that could hold up to one trillion cubic feet of gas. KCA Deutag s Ben Avon jackup has been contracted to drill this well, after which it may mobilise to Tanzania to work for Orca Exploration. Rialto Energy awarded a FEED contract to Petrofac for Block CI-202 Rialto Energy has awarded a Block CI-202 FEED (front end engineering and design) contract to Petrofac, with work scheduled for completion in October Rialto is working to fast track first hydrocarbons. It expects to award further contracts before the end of Block CI-202, which lies on the Gazelle Field offshore Cote d Ivoire, is being developed by Rialto and Petroci. The field development plan and gas agreement has been approved by the Cote d Ivoire authorities and the production facilities will consist of a fixed production platform at the Gazelle Field with separate oil and gas pipelines from the platform to shore. The pipelines will be designed with spare capacity for future production of up to 40,000 bopd (barrels of oil per day) and 230 mmcf/d (million cubic feet of gas per day). Rialto has also secured a drilling rig agreement with Vantage Drilling Company. The Sapphire Driller Jackup drilling rig will be deployed to drill three wells on the CI-202 Block. The rig could be utilised to drill two additional wells. Saipem signs E&C contract for Mafumeria field Saipem has signed a new E&C (engineering and construction) offshore contract in West Africa for the development of the southern part of the Mafumeira field within Block 0. The contract has been awarded by CABGOC (Cabinda Gulf Oil Company Ltd), wholly owned by Chevron. The Mafumeira Sul EPCI 3 scope of work is for the engineering, procurement and pre-fabrication activities for subsequent offshore modifications and tie in activities on the existing Mafumeira Norte platform and the future Mafumeira Sul production platforms. Mafumeira Sul EPCI 4 comprises the engineering, procurement, fabrication and installation of an onshore pipeline portion connecting the field to the oil storage and export facilities in the Malongo Terminal. The marine activities will be carried out in different time frames between the fourth quarter of 2013 and the second quarter of Register at to access over 3000 global oil, gas & petrochemical projects

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27 - Issue 36 - Page 27 MIDDLE EAST PROJECTS Second Phase of PetroRabigh Petrochemicals Complex Petro Rabigh is one of the world s largest integrated refining and petrochemical production facilities. It is among the 15 largest refineries in the world based on crude distillation capacity. The project, a major upgrade and expansion of Saudi Aramco s existing Rabigh Refinery, is a joint venture between Saudi Aramco (37.5% interest) and Sumitomo Chemical Co. Ltd. of Japan (37.5% interest), while 25% of the company is listed in the Saudi stock market (Tadawul). Saudi Aramco will supply the project with crude oil, ethane and butane feedstock, and will market the refined output of Petro Rabigh. Sumitomo will provide its proprietary petrochemical technology and marketing base of petrochemical products. It can process 400,000 barrels of crude per day, accounting for about 19% of Saudi Arabia s total refining capacity. GS Engineering & Construction has won a US$1.78 billion EPC contract in Saudi Arabia GS Engineering & Construction has won a US$1.78 billion EPC contract win from the Saudi Aramco/Sumitomo Petro Rabigh joint venture in Saudi Arabia. The contract is for EPC works for the second phase of the expansion of the Rabigh petrochemical complex, with completion slated for the first half of Petrofac awarded US$500 million EPC contract in Saudi Arabia Petrofac has won a US$500 million EPC contract at Saudi Arabia s Rabigh II petrochemicals expansion project. Petro Rabigh, a joint venture between Saudi Aramco and Sumitomo Chemical, have contracted Petrofac to build two units under a utilities and offsites contract. Saipem lands new E&C onshore contracts worth US$1 billion Saipem has been awarded new E&C (engineering and construction) onshore contracts in Saudi Arabia. In Saudi Arabia, Saipem has signed a lump sum EPC (engineering, procurement and construction) contract for the Naphtha and Aromatics Package (RP2) of the Rabigh II Project with Saudi Aramco and Sumitomo Chemical, for the expansion of the integrated refinery and petrochemicals complex in the city of Rabigh, located in north of Jeddah, on the Western coast of Saudi Arabia. The scope of work includes the EPC of two processing units including a Naptha Reformer Unit and an Aromatics Complex. The project will be completed by the fourth quarter of The Petro Rabigh complex, whose original production was more than 20 million tonnes of petroleum and petrochemicals products per year, will process an additional 30 million standard cubic feet of ethane per day and three million tonnes of naphtha per year after the expansion. Cameron secures a supply contract for the Rumaila field Cameron has been awarded a supply contract valued at about US$100 million by the ROO (Rumaila Operating Organisation) in Iraq. The ROO is a joint venture between the state owned SOC (South Oil Company), BP and the CNPC (China National Petroleum Corporation). The scope includes equipment for new wells and rehabilitation of existing wells along with the associated aftermarket services for the next three years for the Rumaila field. Register at to access over 3000 global oil, gas & petrochemical projects

28 - Issue 36 - Page 28 MIDDLE EAST PROJECTS Upper Zakum Field The Upper Zakum field is one of the largest, most prolific oil fields in the world that has produced for more than 40 years. Situated about 80 kilometres northwest of Abu Dhabi, the oil field spans more than 450 square miles and lies in the deep waters of the Persian Gulf. It is estimated that Upper Zakum contains 50 billion barrels of oil and it currently produces more than one half million barrels a day. Upper Zakum should remain in production until The Zakum Development Company (ZADCO) was established in 1977 to operate and develop the oil field on behalf of Abu Dhabi National Oil Company (ADNOC), which holds a 60% interest in the field; ExxonMobil holds a 28% interest; and Japan Oil Development Company Ltd. (JODCO) holds the remaining 12% interest. Since the oil field is considered one of the most complex fields in the oil industry, because of high rock porosity and low pressure, ExxonMobil joined the consortium in March 2006 with the prime task to further develop the field in order to increase its daily output of 550,000 bopd (barrels of oil per day) to 750,000 bopd by Columbia Industries has won a multiple pad drilling contract for the Upper Zakum Columbia Industries has been awarded its biggest single order for a multiple pad drilling project destined for the United Arab Emirates (UAE). Abu Dhabi s National Drilling Company is thought to be the buyer, with the rigs destined to be used on the Upper Zakum man made islands in the shallows offshore. Labeled the 3,000 horsepower (hp) Rig Island Project, the UAE order comprises a custom application of seven rigs in three different modules including, drill, mud and power for a Chinese Drilling Rig manufacturer. Abu Dhabi s ZADCO (Zakum Development Company) is working at full stretch on the enormous expansion of drilling and production to achieve its goal to produce 750,000 bpd (barrels per day) of crude oil by In order to achieve the huge ramp up, ZADCO is shifting from traditional offshore platform production to a network of four artificial islands (three satellites and one main central island), from which greater production is anticipated. Drilling reach will be extended from 10,000 feet to around 30,000 feet from the new islands using ZADCO shareholder ExxonMobil s ERD (extended reach drilling) technology. Habtoor Leighton lands contract at Upper Zakum HLG (Habtoor Leighton Group), the joint venture between Leighton Holdings and the Al Habtoor business empire, has secured a major contract for the design and construction of accommodation and utilities for artificial islands being constructed in the ZADCO (Zakum Development Company s) Upper Zakum offshore oil field development in Abu Dhabi. HLG s scope of work comprises the EPC (engineering, procurement and construction) of accommodation, supporting buildings and permanent utilities, including accommodation for 2,150 people, kitchen, mess hall, clinic, laundry, recreational areas and mosque, and operations and drilling offices and workshops. The project will commence immediately and is anticipated to be completed in August ZADCO has embarked on the Upper Zakum Field Development program which is aimed at achieving a target oil production plateau rate of 750,000 bpd (barrels per day) from the Upper Zakum field and to sustain this production target for at least 25 years utilising the artificial island based drilling and production centres. HLG CEO and Managing Director Laurie Voyer said Over recent times, we ve made a conscious effort to diversify HLG s workload, and securing oil and gas-related projects such as this are part of our approach. A key aspect of the project s delivery is logistics with ZADCO acknowledging HLG s vast experience in delivering complex projects in difficult and remote locations. By successfully delivering this project according to ZADCO s program, HLG is in an ideal position to secure additional oil and gas-related work for ZADCO and other oil and gas companies across the region The UAE remains our largest geographic market and we expect it remain so for some time, he said. Rosneft to partner with ExxonMobil to tap West Qurna-1 oilfield Rosneft has been in talks with ExxonMobil about partnering with the US group to tap Iraq s huge West Qurna-1 oilfield. Rosneft may secure 20% in the project operated by Exxon in southern Iraq. West Qurna-1, an 8.7 billion barrel field in southern Iraq, is producing 406,000 bpd (barrels per day), expected to rise 100,000 bpd later in 2012, as the country looks to double output over the next three years during its recovery after years of sanctions and war. Register at to access over 3000 global oil, gas & petrochemical projects

29 - Issue 36 - Page 29 MIDDLE EAST PROJECTS Jacobs Engineering Group Inc has been awarded a contract for the UHMWPE plant in Jubail Saudi Kayan Petrochemical Company, an affiliate of SABIC (Saudi Basic Industries Corporation), has awarded a design contract to Pasadena, Jacobs Engineering Group Inc. The contract is for the development of a PDP and FEED package for the build of an UHMWPE (ultra-high molecular weight polyethylene) plant in Jubail, and will be executed from Jacobs Winnersh, UK and Al- Khobar offices. UHMWPE is used in many industrial applications including batteries and industrial fibers. This plant is to have a production capacity of 35,000 tonnes per year using ethylene sourced from Kayan s existing olefins plant and is of significant strategic importance as SABIC is to use its own technology. SABIC, headquartered in Riyadh, is a market leader in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers. Technip has been awarded an EPIC contract for the SW Fateh and Falah fields Technip has been awarded a subsea contract covering the South West Fateh and Falah fields, off Dubai in UAE, by Dubai Petroleum. The engineering, procurement, installation and commissioning contract included the replacement of a 30 centimetre gas pipeline and six 46 centimetre water injection pipelines. The work will be carried out by the company s operating centre in Abu Dhabi and is scheduled to be completed by the end of Technip s G1201 S-Lay installation vessel would be used for pipelaying, as well as a diving support vessel. Arturo Grimaldi, Senior Vice President of Technip in the Middle-East, declared: This contract is a significant milestone for Technip in the Middle East. It confirms our entry into the promising subsea business in the region, where we were traditionally focused on the onshore and offshore markets, thanks notably to positions and assets gained from the acquisition of Global Industries in Iraq approves US$843 million Weatherford contract Iraq s cabinet approved a US$843 million service contract on Tuesday 19th June 2012 with Weatherford to build crude production units in the Zubair oilfield. Eni, Occidental Petroleum and Kogas signed a 20 year deal with Iraq to develop Zubair. They set an eventual output target of 1.2 million bpd (barrels per day) by Under the contract, Weatherford is to construct six crude production units, each with the capacity to process 50,000 bpd. The duration of the contract is 18 months. Zubair is currently producing a round 254,000 bpd and output is expected to increase by 100,000 bpd by the end of Iraq has awarded massive oilfield development contracts to super majors such as Shell and BP with the ambitious target of expanding its oil production capacity to 12 million bpd by Most analysts see six million to seven million bpd as more realistic. Current export infrastructure is outdated and lacks the capacity to handle Iraq s future expected output raise. Iraq is currently exporting an average of 2.4 million bpd and expects to export 2.5 million bpd this Técnicas Reunidas wins US$800 million Saudi contract Técnicas Reunidas (TR) has been tasked with an US$800 million contract to build six new petrochemicals plants at Saudi Arabia s Jubail Industrial City. The Spanish engineering firm will be working on the Chem-III project, constructing ethylene oxide, propylene glycol, polyols, ethanol amines, ethylene amines, butyl glycol ether plants, as well as the auxiliary and control facilities needed to run them. The plants are set to come online in TR was awarded the contract by Sadara, a US$20 billion joint venture set up between Dow and Saudi Aramco in When completed, Sadara will be one of the largest chemical complexes in the world, and the biggest to be built in a single phase. Register at to access over 3000 global oil, gas & petrochemical projects

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31 FEATURED ARTICLE - Issue 36 - Page 31 ASIA & OCEANIA Indonesia calls for accelerated construction of its first floating LNG receiving terminal Amid increasing natural gas consumption, Indonesia is scrambling for answers, including pushing up the completion date of its first Floating LNG (FLNG) plant. Indonesia s Coordinating Minister for the Economy, Hatta Rajasa, said in June that Shell wants to accelerate its development of the Masela gas block in the Timor Sea by effectively doubling the construction schedule of its proposed LNG floating facilities. Hatta said that Shell s proposed floating plant, which the company had originally hoped would produce 2.5 million tons of gas per day, will instead be able to produce 6 million tons per day by linking the first and second phases of the project, the Jakarta Post reported. The construction of Shell s Floating Storage and Receiving Terminal for extraction and storage of LNG will commence next year, with expected completion in 2019, according to Hatta. Last September Japan s Inpex Corp. announced that it would start construction on Indonesia s first floating LNG receiving terminal in the Masela block by the firsthalf of 2012 and expected to start producing in Indonesia s energy regulator BPMigas spokesman Gde Pradyana said at the time that the initial project was estimated to cost up to $5 billion and total investment for development under the first phase projected at $13 billion. Inpex was awarded the contract to develop the Masela LNG block in December In 1998 Inpex acquired a 100% participating interest in the Masela block through a public tender conducted by the Indonesian Government. The Abadi-1 exploratory well was drilled in 2000 and confirmed the presence of gas and condensate. This marked the first discovery of crude oil and natural gas in the Arafura Sea, Indonesia. Subsequently six appraisal wells were drilled by 2008 (two in 2002 and four more in ), and gas and condensate were successfully confirmed in all of the wells. In September 2008, based on the results of Pre-FEED of a floating LNG, a development plan was submitted to the Indonesian government and approval in principle was granted. After a third party evaluation, approval for the plan of development was granted. In July 2011, Inpex signed an agreement with Shell for transfer of a 30% participating interest, with PT Energi Mega Persada owning the remaining 10%. Though production was initially scheduled for 2016, work on the facility has not yet begun. Gas shortages are starting to plague Indonesia. In June state utility company Perusahaan Listrik Negara expressed concern over the supply of gas to its gas-fired power plants in Muara Karang, North Jakarta, prompting fears of possible blackouts in the capital. Suryadi Mardjoeki, head of the fuel division at PLN, said there was a shortage of gas coming from a floating storage and regasification unit located in a Jakarta bay. Last month, The Indonesian government acknowledged that it was considering a moratorium on the signing of new contracts for natural gas exports, saying the country needed the gas more to support national development. Evita Legowo, the director general for oil and gas with the Indonesian Energy and Mineral Resources Ministry, said gas exports did generate income for the state, but using it directly for domestic purposes would have multiplier effects that boosted local industries and the national economy. According to the Energy and Mineral Resources Ministry, Indonesia projects total average natural gas production of 5,118 mmscfd over the period, drawing from 17 gas fields that have been and will be in operation. Four new largescale gas fields are expected to begin operating in the coming years. Indonesia was the world s sixth largest net exporter of natural gas in 2009 according to the U.S. Energy Information Administration (EIA). However, the country failed to meet oil and gas production targets last year. Gas exports once formed the backbone of the Indonesian economy, but according to many analysts, the outlook for the country s gas sector is becoming uncertain due to ongoing decline of mature fields, which makes it difficult for the government to meet the growth of domestic gas requirements and increasing demands from large customers in the region, particularly Japan. According to Oil and Energy Trends, published in 2008, Indonesian gas output has fallen by 400 mncfd, or 6%, since At the same time gas consumption in the country has increased 45% during the period article by Tim Daiss Register at to access over 3000 global oil, gas & petrochemical projects

32 FEATURED ARTICLE - Issue 36 - Page 32 ASIA & OCEANIA Australia s massive Gorgon gas project gains momentum, inks deal with future buyers Last week Petronet LNG Limited, an oil and gas company formed by the Indian government to import LNG, signed a pact to buy 1.5 million tonnes of LNG from the Gorgon project in Australia at 14.5 percent of the prevailing international oil price. At a cost of US $100 per barrel of oil, the LNG would cost US$14.5 per million British thermal units at the time of loading in ships on the Australian ports, according to a July 4 report by the Economic Times. This is just some of the latest news to come out of Australia about the country s massive Gorgon gas project, which has created a lot of media buzz since its beginning in late According to Chevron Australia, the $43 billion operator of the project, Gorgon is one of the world s largest natural gas projects and the largest single resource natural gas project in Australia s history. The project will develop the Gorgon and Jansz/Io gas fields, located within the Greater Gorgon area, about 130 kilometres off the north-west coast of Western Australia. It includes the construction of a 15 million tonnes per annum (MTPA) LNG plant on Barrow Island and a domestic gas plant with the capacity to provide 300 terajoules (TJ) per day to supply gas to Western Australia. The project will increase domestic gas supplies into Western Australia by about one third and will be piped to the Western Australian mainland. Additionally, Chevron Australia secured Gorgon domestic sales contracts on November 30. Under the agreements, gas from the Gorgon Project will be purchased through long term contracts by Western Australia s largest energy retailer, Synergy and the State s leading energy generator, Verve Energy. Verve and Synergy have both entered into contracts for a combined 125 TJ per day for 20 years term starting in From Gorgon, Chevron Australia will be tapping resources that contain about 40 trillion cubic feet (Tcf) of LNG. The company claims, globally, the net impact of using Gorgon LNG will result in about 45 million tonnes less greenhouse gas emissions, when comparing against coal and that s the equivalent of taking about two-thirds of all vehicles off Australian roads. Gorgon LNG will be off loaded via a four kilometre long loading jetty for transport to international markets. LNG sales agreements have already been reached between the project s joint venturers and customers in China, India, Japan and South Korea. First LNG production is scheduled for The project is being developed by the Gorgon Joint Venture, which consists of Australian subsidiaries of three international energy companies: Chevron Australia (a subsidiary of Chevron) (47% share and project operator), Shell Development Australia (a subsidiary of Royal Dutch Shell) (25%), Mobil Australia Resources (a subsidiary of Exxon Mobile) (25%), Osaka Gas (1.25%), Tokyo Gas (1%), and Chubu Electric Power (0.417%). Not only has Petronet recently inked a deal with Chevron Australia for the Gorgon project, but last week Kuwaitbased storage and logistics provider Agility was awarded a $238 million two-year contract to provide support for project. Agility will provide logistics, unloading and related services. As deals with buyers and providers are firmed up, construction for the project is gaining momentum as well. A Chevron Australia spokesman said that the first preassembled racks (PARs) modules arrived at Barrow Island from Indonesia two weeks ago and that it represents the most recent major milestone for the Gorgon project. He said that the pipe racks arrived at the island s new Materials Offloading Facility and have undergone a thorough inspection by the project s quarantine team. The PAR modules are now being moved to the site by selfpropelled module transporters. They will eventually take their place in the east-west corridor area of the LNG plant. Over the coming months the Gorgon Project site on Barrow Island will be transformed as more PAR modules and the first train processing modules arrive and are placed on their foundations, the spokesman said. He added that this is the first of 56 shipments of modules due to arrive at site for the project. Other news about the project however has not been so favorable. On June 27, The West Australian reported that about 200 waterside workers at Henderson [a suburb of Perth] were stood down from loading work for the Gorgon LNG project so investigations could be conducted into union safety complaints about a foreign-crewed ship. The safety audit followed a warning from the union the week before, stating that wharfies would not be happy about having to load the Rolldock Sun [a heavy load carrier vessel] ahead of a trip to Barrow Island because Australian seafarers had been excluded. Register at to access over 3000 global oil, gas & petrochemical projects

33 - Issue 36 - Page 33 FEATURED ARTICLE However, a report broke that employees at Henderson will not be allowed to strike for at least two months, following an order handed down by Fair Work Australia. The impact of the Gorgon project will be immense and will help position Australia as the world s biggest LNG exporter by 2018 according to many analysts. Other projects under way in Australia include Prelude and Wheatstone projects in Western Australia, and the Curtis, Gladstone and Australia Pacific liquefied natural gas (APLNG) project in central Queensland which are due to come on stream between late 2014 and late 2016, followed by the Darwinbased Ichthys project in Currently, Qatar is the world s largest LNG exporter, followed by Malaysia and Indonesia. However both Indonesia and ASIA & OCEANIA Malaysia are seeing dwindling production from their ageing fields while domestic consumption increases. Consequently, on July 4, the Indonesian government announced that it might stop the signing of any new deals to export natural gas and use it just for domestic consumption. The biggest customer for seaborne LNG is Japan, with annual imports of about 80 million tonnes, which has increased since the shut down of that country s nuclear facilities in the wake of the 2011 earthquake and subsequent Fukushima nuclear disaster. Japan is followed by South Korea and China. India is also growing in importance as a customer. article by Tim Daiss I n t e r n a t i o n a l Integrated Solutions to Piping Problems At Patriot International, our aim is to provide soultions to piping problems by supplying specialist rental equipment and training services. Our range of superior quality equipment has been chosen for its ease of use, reliability and safety features. Controlled Bolt Tightening Pipe Cutting Flange Facing Ultrasonic Bolt Measurement Heat Treatments Pressure Testing Training Specialist Products: CME, React Tube Pulling & Expanding Pipe Bevelling T: +44 (0) F: +44 (0) info@patriot-int.com

34 FEATURED ARTICLE - Issue 36 - Page 34 ASIA & OCEANIA Chevron-PetroChina s Chuandongbei gas project postponed until next year PetroChina, the listed arm of state-owned CNPC, and Chevron announced in February last year that they had officially started construction of production facilities at their joint Chuandongbei gas project in China s Sichuan Basin and was to come online by mid However this February Chevron pushed the date back, announcing that operations would begin in Chuandongbei is China s largest gas project in cooperation with a foreign partner. Chevron has a 30-year productionsharing agreement with PetroChina to develop Chuandongbei at an estimated cost of $4.7 billion. Chevron has a 49% interest in the project while CNPC controls the remaining 51%. Chuandongbei is one of the largest onshore capital projects the American oil major is currently developing. Plans call for two sour-gas processing plants with a combined capacity of 740 million cubic feet per day connected to five natural gas fields. Sour gas is natural gas containing hydrogen sulfide. It is typically processed into gas that meets customer specifications, natural gas liquids and elemental sulfur. Elemental sulfur can be used in fertilizer and other products. In 2011, Chevron began construction of the first processing plant and development of the Luojiazhai and Gunziping natural gas fields. This year the company began site preparation at the second natural gas processing plant, well pads and gathering system locations. Chuandongbei block is an onshore gas-producing block. The block lies in the Xuanhan and Wanyuan counties of Sichuan province and Kai county of Chongqing municipality, China. The Chuandongbei area includes Tieshanpo, Dukouhe-Qilibei and Luojiazhai gas fields and covers an area of approximately 2000 square kilometers. Chuandongbei block was discovered in The hydrogen sulfide content of Luojiazhai is %. The nearby Dukouhe and Tieshanpo fields are even sourer. The sulfur content of Tieshanpo field is 14.19% and Dukouhe is 15.27%. The total estimated recoverable reserves of the block are 5 trillion cubic feet (Tcf) of natural gas, with Luojiazhai gas field at 2 Tcf and the combined reserves of Tieshanpo and Dukouhe gas fields at approximately 2.6 Tcf. The peak production of Chuandongbei block field is estimated at billion cubic feet (Bcf) at its peak. The field life of Chuandongbei block is expected to be around 28 years with complete abandonment during The field is expected to generate $41 billion in revenues Four months after construction began at Chuandongbei, China took their cooperation with Western oil majors to the next level. On June 20, 2011, Shell and CNPC signed a Global Alliance Agreement to jointly pursue opportunities internationally and in China. The two parties also signed an agreement to establish a well manufacturing joint venture (50% CNPC and 50% Shell). And this March, Shell and CNPC signed a production-sharing contract for shale gas exploration, development, and production on the Fushun-Yongchuan block, also in the Sichuan basin. China is not only trying to develop its own hydrocarbons resources onshore but also offshore as well. In May the China Daily reported that the country s first independently designed and constructed oil drilling platform in the South China Sea, Ocean Oil 981, began its first drilling operations. The platform is located 320 kilometers southeast of Hong Kong, and contains 160 employees. Drilling is at a depth of around 1,500 meters to try to reach an estimated 30 billion cubic meters of natural gas. This is the first independent deep-water oil drilling conducted by a Chinese company, and makes China the first country to actively drill for deep-water oil and gas resources in the South China Sea, which has rival claimants, namely Vietnam, the Philippines and China. This is a massive increase for China whose previous oil extraction capacity was limited to 500-meter-deep seas. CNOOC spent 6 billion yuan ($ million) in developing the rig, which was specially designed to drill deep-sea oil fields. The rig weighs 31,000 tons with a deck the size of a standard football field. It is able to undertake offshore operations at up to 3,000 meters under the ocean and extract for oil at a depth of 12,000 meters, according to its builder, China State Shipbuilding Corp (CSSC). Heavy investment by PetroChina in offshore drilling and pipelines should start to pay off over the next few years, said Jingpu Guo, an analyst at Hong Kong-based Cinda Securities. The company pays a healthy dividend yield above 3.5%. Those two factors give PetroChina stock a potential upside of more than 50% he said, putting the top of his target range at 13. In 2007 PetroChina stock rocketed to 48.6 shortly after its initial public offering in It recently hit a record low of 9. Register at to access over 3000 global oil, gas & petrochemical projects

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36 - Issue 36 - Page 36 ASIA & OCEANIA PROJECTS Chiyoda awarded EPC contract for Hitachi LNG Terminal by Tokyo Gas Engineering Corporation Chiyoda Corporation has been awarded an EPC (engineering, procurement and construction) contract by Tokyo Gas Engineering Corporation for the Hitachi LNG Terminal located in Ibraki Port, Hitachi City. Site work is scheduled to start in 2013 with operations planned for Under the scope of the EPC contract, Chiyoda will provide a 230,000 kl (kiloliter) LNG (liquefied natural gas) Tank, a 50,000 kl LPG (Liquefied petroleum gas) Tank, a production facility comprising three LNG vaporiser units, a Lorry offloading facility and a large Jetty for receiving LNG tankers. Rolls Royce wins US$30 million gas turbine contract with Shell Rolls Royce has won a US$30 million order from Shell to supply two industrial RB211 gas turbines to boost gas output from the Malampaya deepwater natural gas project in the Philippines. Shell has used Rolls Royce technology as the mechanical driver for the project s gas compression trains since start up in The additional two RB211 units will enhance production output and efficiency, helping assure a stable supply of energy and a cleaner source of power for the Philippines. The contract was awarded under a global frame agreement, signed in 2007, between Rolls-Royce and Shell Philippines Exploration B.V. (SPEX) which operates the Malampaya project on behalf of joint venture partners Chevron Malampaya LLC and the Philippine National Oil Company Exploration Corporation (PNOC EC). Tony Ruegger, Rolls-Royce, Executive Vice-President Oil & Gas said: We are delighted that after eleven years of successful collaboration on this important project Shell has again put its trust in Rolls-Royce. The proven reliability and efficiency of our equipment will help the Malampaya project partners maintain high levels of gas production, ensuring that the Philippines continue to access dependable supplies of electricity. ONGC to tender for subsea systems at D1 field ONGC (Oil & Natural Gas Corporation) has launched a tender for the supply, installation and commissioning of a subsea production system for subsea completions of wells at its D1 field, off the country s west coast. The workscope also envisages a pre-engineering survey and the inspection of existing wellhead platforms, drilling rig and new platforms - D-1-B, D-1-C and D-1-D - which are yet to be installed. The contractor will be responsible for the design, engineering, fabrication and commissioning of the subsea christmas tree, flexible jumpers, umbilical and production control system for the D1 field. ONGC s tender specifies umbilical s of 2,250 metres, 3,200 metres and 5,000 metres for the D-1 wells. ONGC is yet to decide on the deadline for submission of technical and commercial bids. CIMC Raffles begins COSLProspector build CIMC Raffles has commenced work on a semi-submersible drilling rig, the COSL Prospector, for China Oilfield Services at its Yantai City yard in China s Shandong province. The semi-submersible is the fourth rig of its kind ordered by COSL, which is commissioning the semi-submersible without a firm contract after fulfilling a three rig deal with Statoil in April The dynamically positioned rig, being fitted to Norwegian certification standards, is due for delivery in the second half of The COSLProspector is being equipped to drill in a maximum operational water depth of 1,500 metres, deeper than its predecessors, and can carry a greater load of 6,000 tons on its variable deck. It will have a maximum drilling depth of 7,600 metres. Register at to access over 3000 global oil, gas & petrochemical projects

37 - Issue 36 - Page 37 ASIA & OCEANIA PROJECTS Sembcorp and Swiber lands US$175 million EPCI work for Premier Subsidiaries of Sembcorp and Swiber have signed a US$175 million contract for EPCI (engineering, procurement, construction and installation) works for Premier Oil Natuna Sea. Sembcorp s SMOE Indonesia and Swiber s Rajawali Swiber Cakrawala (RSC) will start work on the Naga and Pelikan fields offshore Indonesia in July 2012, providing two wellhead platforms, two infield subsea pipelines and modification works on the existing facility. Under the deal, SMOE would be responsible for engineering design, procurement, construction, offshore hook up and commissioning of the platforms and modification work on the existing central processing platform. The platform topsides would each weigh about 480 metric tonnes while the jackets would each weigh 900 tonnes and its scope of work is valued at about US$63 million. RSC would be responsible for the engineering and laying of the two subsea pipelines as well as the transportation and installation of the two platforms in water depths of 82 metres. The pipelines would be a 19 kilometre 14 inch subsea pipeline and 32 kilometre 12 inch pipeline to be tied to an existing central processing platform. The infrastructure will help Premier progress plans to tie in production from the Pelikan and Naga fields to the new Gajah Baru central processing platform for export through the West Natuna Transportation System. Offshore completion of the project was due by September 2013 though there is a possibility it would not be completed until Technip-Daewoo Consortium awarded EPC contract Technip, in a consortium with Daewoo Shipbuilding & Marine Engineering (DSME), the Technip-Daewoo Consortium (TDC), was awarded by Petronas a service contract for EPCIC (engineering, procurement, construction, installation and commissioning) for FLNG (floating liquefied natural gas) facility of 1.2 million ton per year maximum capacity. The 300 metre long and 60 metre wide FLNG facility will be located offshore Malaysia. The contract is an alliance between TDC, led by Technip, and Petronas. Technip s portion is composed of project management services and lump sum for engineering. The detailed design of the topsides will be executed by Technip s operating centres in Kuala Lumpur, Malaysia, and Paris, France. Engineering of the hull and building of the FLNG facility will take place at Daewoo s shipyard in Okpo, South Korea. This contract follows the successful completion of the FEED (front end engineering design) phase awarded to TDC in December Swiber subsidiary awarded US$200 million South Belut contract Swiber Offshore has been awarded a contract worth close to US$200 million linked to ConocoPhillips South Belut subsea development in South Natuna Block B off Indonesia. The contract involves engineering, procurement, construction and installation of pipelines and subsea structure plus modification to the existing North Belut facility. Rajawali Swiber Cakrawala has roped in Meindo Elang Indah to handle the fabrication, hook-up and commissioning of additional topsides modules at North Belut. Swiber will install 20 kilometres of pipelines plus two manifolds, umbilicals and jumpers, J-tube, risers and other association facilities, on-site installation is targeted from the first quarter of Ramunia Holdings secures Sarawak Shell contract worth US$55.9 million Ramunia Holdings will build the substructure and topsides for Sarawak Shell platforms under two contracts worth US$55.9 million. The contracts range from fabrication to testing, load out and tie down of the substructures and topsides which include jacket, piles and related components for the D12DR-A and Laila LADR-A Projects offshore Sarawak. Shell is developing the the Laila field in Block SK 307 and the D12 marginal field in Block SK5, off Sarawak, in partnership with Petronas. The developments are intended to increase supplies to the MLNG Dua and Tiga liquefied natural gas plants in Bintulu, Sarawak. Ramunia s one off contracts are expected to be delivered within the second quarter of the Register at to access over 3000 global oil, gas & petrochemical projects

38 - Issue 36 - Page 38 NORTH AMERICA PROJECTS AMEC awarded a FEED contract from BP for topsides facilities AMEC has been awarded a contract from BP Exploration & Production Inc. to provide FEED (front end engineering design) services for the topsides facilities for the second phase of the Mad Dog field development. The new facility will be of one of the largest floating production systems to be installed in the Gulf of Mexico. This award is the latest in our on-going global engineering and project management services agreement with BP and continues our long-term collaboration with the largest oil producer in the Gulf of Mexico, said Simon Naylor, President of AMEC s Natural Resources Americas business. The contract further strengthens AMEC s track record in the development of global deepwater facilities, building on current offshore projects in Brazil and Angola. The new facility will produce oil and gas from the Phase 2 development area within the existing Mad Dog field in the Green Canyon region of the Gulf of Mexico, about 320 kilometres south of New Orleans, Louisiana. ASCOM wins deepwater GOM contract Advanced Separation Company (ASCOM) has been awarded a contract by a subsidiary of Anadarko Petroleum Corporation to design and deliver a compact in-line HiPer TWINLINETM gas/liquid separator for processing the natural gas for the Hadrian South field through Lucius truss spar floating production facility that will be installed in the USA Gulf of Mexico (GOM). The HiPer TWINLINETM is a compact in-line two-stage gas/liquid separator designed to provide high separation efficiency over a wide operating range at a low pressure drop and is proprietary ASCOM technology. The HiPer TWINLINETM will be installed topsides on the Lucius spar as an in-line gas/liquid separator and will be delivered to Anadarko by end of CB&I awarded US$300 million Kearl Oil sands expansion project contract CB&I has been awarded a contract, valued at approximately US$300 million, by Imperial Oil Resources Ventures Ltd. for work on the Kearl Expansion Project in Alberta, Canada. CB&I s project scope for this phase of the work includes procurement, module assembly at CB&I s Fort Saskatchewan facilities, and construction and installation of modular components at the site. Chevron selects BMT for Big Foot EFMS Chevron U.S.A. Inc. has awarded a contract to BMT Scientific Marine Services Inc to provide an EFMS (Environmental and Facilities Monitoring System) for the Chevron operated Big Foot TLP (Tension Leg Platform) in the Gulf of Mexico. The EFMS monitors, logs and displays data in real-time on the local environment and facility motions. It archives the data for assessing the TLP s integrity over time and interfaces with the facility s other platform control systems. The EFMS is comprised of a computer console, topside and subsea remote sensor packages, BMT s proprietary data acquisition system, and custom user display screens. ClampOn secures order to supply subsea and PIG detectors for Tubular Bells field ClampOn has secured an order to supply multiple subsea acoustic sand vibration detectors and PIG detector for the Hess Tubular Bells project. The project is in 1,341 metres of water and is approximately 135 miles southeast of New Orleans in Mississippi Canyon Block 725. The expected start up for Tubular Bells is the fourth quarter of The ClampOn Subsea sensors provided are the only acoustic sensors with atmospheric and high pressure chambers, pipe contact verification, electronic beam welding and dual independent electronics. These qualities make ClampOn the preferred supplier of nonintrusive sensors for applications worldwide. Fluor to build Ku-Maloob-Zaap production platform in a deal worth US$95 million ICA Fluor proceeded with the signing of a contract with Pemex Exploration and Production for the construction of an offshore production platform for the Ku-Maloob-Zaap field in the Gulf of Mexico with a total contract value of US$95 million. Fluor s share of the contract, US$47.5 million, will be booked in the second quarter. ICA Fluor and its subsidiary Industrias del Hierro will be responsible for the procurement, construction, testing, and load out of the Ayatsil-C platform. Weighing 11,832 tons and reaching 132 metres deep, Ayatsil-C the first structure of this size to be installed by Pemex. The project is expected to be completed by the end of Register at to access over 3000 global oil, gas & petrochemical projects

39 trusted expertise Air Energi provide trusted expertise to our clients and candidates engaged in the global oil and gas industry. Through our company values: safe, knowledgeable, innovation, passion, inclusion and pragmatism, WE DELIVER, each and every time. Innovative forward thinking, pioneering Latest Vacancies Junior Field Planner USA Ref:9047 Site Engineer Canada Ref:9045 Mechanical Completions Canada Ref:9046 Lead Document Analyst Canada Ref:7883 Commercial Advisor Canada Ref:8989 Accounts Manager Canada Ref:9038 Maintenance Processes Lead United Kingdom Ref:9090 Electrical Engineer United Kingdom Ref:9173 Petrophysicist Canada Ref:7427 Mechanical Manager France Ref:7193 Site Health Safety Lead Canada Ref:6283 Planner & Scheduler Canada Ref:8681 IT Project Manager Canada Ref:8988 Field Engineer Canada Ref:9023 NEW - PAYRATE/SALARY CALCULATOR Try the New Payrate/Salary Calculator on our website. It uses the largest database of professionals on the market with over 1 million records used to get the most accurate results available. The results are an average, pre tax and without the extras included in most packages. Currently it is all done in USD for ease. Visit and give it a try. Executive Post Contract & Procurement Advisor Houston - $140,000 to $180,000 negotiable Our client is a leading player in the Global energy market and is a growing business with operations in more than 25 countries. It is looking to recruit an experienced, Senior Contracts & Procurement Advisor to be based in its Houston office. The successful candidate will manage the strategic sourcing and category management of equipment and service contracts necessary for the execution of multi-billion dollar capital projects. Suitable candidates must have a minimum of 10 years relevant experience, preferably gained within an Operator environment. Must have Strategic Procurement Subsea (Offshore) experience. Any Category Management experience will be a distinct advantage. To discuss this role in the strictest confidence, please contact Paul J. Henry on or by at: phenry@airenergi.com Mobile Phone App - Now all of our Oil and Gas jobs get posted to not just all our social media site such as Twitter Facebook and LinkedIn but we now have a mobile phone app that allows you to not only search all the new jobs out there, apply and contact us about them but will also notify you if you want it to of new jobs as they become available to - just to save you the hastle of even searching in the first place. Download it now... its FREE! Start Up Coordinator Canada Ref:9153 Buyer Canada Ref:9147 Maintenance Scheduler Canada Ref:9149 Contracts & Procurement USA Ref:7025 WEP Field Lead Canada Ref:7981 Structural Engineer Canada Ref:9114 Completions Engineer Canada Ref:9009 Structural Engineer Canada Ref:5911 Senior Geoscientist Canada Ref:7231 Production Engineer United Kingdom Ref:9005 Senior Electrical Engineer United Kingdom Ref:8895 To fi nd out more about our services, or view any of the hundreds of jobs currently on offer, visit: Angola Australia Brazil Cameroon Canada China Equatorial Guinea France Indonesia Italy Japan Kazakhstan Kuwait Malaysia Nigeria Norway Papua New Guinea Qatar Russia Singapore South Korea Syria Thailand UAE United Kingdom USA Venezuela Vietnam

40 - Issue 36 - Page 40 NORTH AMERICA PROJECTS Tata Steel lands a US$155 million deepwater pipe contract in Gulf of Mexico Tata Steel has been awarded a major contract worth more than US$155.3 million to provide pipe for Discovery Producer Services L.L.C. gas pipeline in Keathley Canyon, Gulf of Mexico. Discovery is a 60/40 joint venture between Williams Partners L.P. and DCP Midstream Partners L.P. The company will supply Discovery s Keathley Canyon ConnectorTM with 345 kilometres of 20 inch diameter submerged arc welded linepipe, weighing more than 110,000 metric tonnes. The pipe will be manufactured at Tata Steel s 42 inch mill in Hartlepool, England. Delivery is scheduled for the second half of The Keathley Canyon ConnectorTM gas pipe will have a gathering capacity of over 400 million cubic feet, gathering the gas from the Keathley Canyon, Walker Ridge and Green Canyon areas of the Gulf of Mexico. The pipe will be laid at water depths of up to 2,250 metres and is designed to meet the required specification for deepwater conditions. OceanWorks International awarded contract for MWCC subsea dispersant fluid system OceanWorks International has been awarded a design, manufacturing and test contract to provide MWCC (Marine Well Containment Company) with a SDFS (subsea dispersant fluid system). The system will further enhance MWCC s existing dispersant injection system, also developed and manufactured by OceanWorks International. The SDFS is designed to sit on the seabed in the proximity of a subsea well at depths of up to up to 3,000 metres and provides the capability to deliver dispersant fluid to a deepwater well control incident in the U.S. Gulf of Mexico. The system is designed to allow the dispersant flow to be provided by either a surface vessel or autonomously based on ROV provided flow input. Equipment provided includes three battery/pump modules, three gathering manifolds, two distribution manifolds, static mixers, all interconnecting hose assemblies and deployment equipment. OGS and Samsung win FEED contract for Lavaca Bay LNG project OGS and partner Samsung Heavy Industries and have won the topsides FEED (Front End Engineering and Design) work for Excelerate Energy s Lavaca Bay LNG Project in Houston, Texas. The project will be the first floating liquefaction facility in the United States, and is designed to export LNG from the Texas Gulf Coast to markets worldwide by The work involves naval architecture, hull structure, and topsides process facilities, designed for a capacity of four million tonnes per year. OGS will perform FEED engineering work associated with the topsides facilities.

41 - Issue 36 - Page 41 Peregrino Oil Field - Block BM-C-7 & BM-C-47 - Campos Basin SOUTH AMERICA PROJECTS BW Offshore has secured a contract for operation of the Peregrino FPSO BW Offshore has secured a contract for operation of the Peregrino FPSO (floating production, storage and offloading) off Brazil with Statoil, which is to take over ownership of the vessel together with partner Sinochem. BW Offshore has won a five year contract to run the FPSO vessel on the Peregrino oilfield, with options for an additional 15 years. The contractor will take over operation of the unit from the current owner and operator Maersk following a six month period for transfer of the floater to Statoil. Maersk employees working on the vessel will be retained on new contracts with BW Offshore. The Norwegian state oil company and Sinochem are set to gain ownership of the FPSO on 31 July 2012 under their purchase deal with Maersk. The floater was originally converted from a very large crude carrier at a cost of more than US$1 billion and has been working at the field in the Campos basin, about 85 kilometres off Rio de Janeiro, since start up in Wison awarded Puerto la Cruz oil refinery contract in Venezuela Wison Engineering Ltd. has been awarded an EPC contract by PDVSA Petroleo, S.A. (PDVSA), at the Puerto la Cruz oil refinery. Hyundai Engineering & Construction Co. Ltd. and Hyundai Engineering Co,. Ltd. are jointly participating in the project as Consortium Hyundai-Wison. The total contract value amounts to approximately US$2.993 billion, of which Wison Engineering will receive a share equivalent to approximately US$927.8 million. Consortium Hyundai-Wison will carry out engineering, procurement, construction and start-up assistance of the environmental units, auxiliary units and revamp of atmospheric distillation units of the deep conversion project, Puerto la Cruz Refinery, which is located about 250 kilometres east of the Venezuelan capital of Caracas. The project will upgrade refinery facilities to process heavy crude oil, with a capacity of 210,000 barrels per day. In addition, the contract calls for the expansion of gasoline, diesel and aviation kerosene projects and other facilities. The project is expected to be completed within 42 months from its commencement. Mr. Dong Hua, Vice President of Wison Engineering said: Venezuela has become one of the key important markets for Wison Engineering as the company focuses on its international business development. We are very proud to be recognised by PDVSA on our project management capabilities that we have accumulated over the years. In addition, we are very happy to partner with Hyundai in this project at the time we are developing the global market. IKM Ocean design lands contract on Peregrino II offshore Brazil Statoil has awarded the concept and FEED engineering contract of the SURF package on Peregrino II in Brazil to IKM Ocean Design. The project starts immediately and will run up to the Summer The Peregrino field is located in the South western part of the Campos Basin, approximately 85 km from shore. Peregrino II is planned to be tied-in to Peregrino I, consisting of two wellhead platforms (A and B) and one FPSO. As part of the Peregrino II development, a new wellhead platform (C) is planned for. The pipelines and power cables from Peregrino II will be connected to the FPSO. The distance between the two fields are approximately 20 kilometres. KCA Deutag engineering arm wins offshore Brazil FEED for Statoil RDS, the engineering arm of drilling contractor KCA Deutag, has been selected by Statoil to perform the Front End Engineering Design (FEED) for a fixed drilling rig which will be part of the Peregrino phase II project, located off the coast of Brazil. The project is scheduled to start immediately and will be executed from RDS London offices. Wison wins EPCIC contract for Pacific Rubiales FLRSU Wison Offshore & Marine Ltd., a subsidiary of the Wison Group has been awarded a contract by the Exmar group for EPCIC (engineering, procurement, construction, installation and commissioning) of the world s first FLRSU (floating LNG liquefaction, regasification and storage unit). The facility will be used by Exmar under a build, own, and operate contract with Pacific Rubiales Energy Corporation, and located on the Caribbean coast offshore Colombia. Commercial operations are planned to commence from the fourth quarter of Wison Offshore & Marine will be responsible for the design and engineering of the unit from its Shanghai operational centre with construction to be performed at Wison s wholly-owned fabrication facility located in Nantong, China, and further support supplied from the company s subsidiary in Houston, Texas, USA.

42 - Issue 36 - Page 42 SOUTH AMERICA PROJECTS Lula (Tupi) & Saphinhoa (Guara) BG Group signs contracts for topside modules for Lula, Sapinhoa FPSOs BG Group and partners have approved the signature of contracts totaling US$4.5 billion for the construction of the first six topside modules and integration packages for eight domestic floating production, storage and offloading (FPSO) units to be used on the Lula (Tupi) and Sapinhoa (Guara) pre-salt projects offshore Brazil. Fluke Engenharia to fabricate 27 suction piles Fluke Engenharia has received a contract from Subsea 7 to fabricate 27 suction piles for use in the Guara-Lula field, which is part of the pre-salt cluster in the Santos basin offshore Brazil. Fluke Engenharia will manufacture the products at its Macae facilities and will deliver them over the course of Keppel lands a US$950 million FPSO contract in Brazil Keppel Corporation has landed a contract worth US$950 million to build topsides for two FPSO (floating production, storage and offloading) vessels in Brazil. The two FPSOs will have identical work scopes including the fabrication and integration of seven topside modules. When completed, the FPSO P-66 will be deployed to the Guara field while FPSO P-69 will work in the Tupi field. Both units will each have a production capacity of 150,000 barrels per day of oil. HRT has discovered oil in the Solimoes basin in the Amazon region HRT has discovered oil in the Solimoes basin in the Amazon region. The discovery in the 1-HRT-6-AM well comes after an announcement in middle of March 2012 that it had discovered more gas in the region, which at the time was confirmation of the presence of large reserves in the area. The company had been drilling the well since January 2012 and reached a depth of 3.4 kilometres. The oil reserves were discovered at intervals of between four metres and eight metres wide. HRT sold a 45% stake in its Amazon exploration areas to TNK-BP for US$1 billion last October Wärtsilä Hamworthy awarded Petrobras flare gas recovery contract Wärtsilä Hamworthy has won a contract to supply its flare gas recovery packages to four FPSO (floating, production, storage and offloading) units under construction for Petrobras. The units, each of which will be able to handle 150,000 bpd (barrels per day), are to be deployed on the pre-salt fields, in the Santos basin, offshore Brazil. Three of the FPSOs will be utilised for block BM-S-11 Lula (Tupi) and one will go to block BM-S-9 Guara. We have developed a strong position in the growing market for flare gas recovery as offshore operators seek greater efficiency over increasing environmental concerns due to flaring, said Hamilton Santos, Project Manager, Gas Recovery Business Unit, Hamworthy Oil & Gas Systems. Flaring gas has a global impact on climate change by adding about 400 million tons of CO2 in annual emissions. Petrobras is committed to minimising flaring in its operations and has therefore planned for flare gas recovery systems to be installed on all units for the presalt development. McDermott wins brownfield contract for North Coast Marine Area Project McDermott International received a brownfield contract to provide two new permanent living quarter modules, including FEED (front end engineering design), design engineering, construction, transportation and installation for BG s North Coast Marine Area project. The two modules comprise a 640 ton, 60 man quarters module for the Hibiscus platform and a 915 ton, 62 man quarters module for the Poinsettia platform. The Hibiscus module will also accommodate new electrical power generation and distribution, the design of which is being performed by the McDermott engineering office in Houston. The Poinsettia and Hibiscus fields are located in the North Coast Marine Area in water depths of up to 162 metres, offshore Trinidad. Structural fabrication and architectural outfitting is being performed at McDermott s fabrication yard in Morgan City, Louisiana. McDermott will also provide overall project, construction and installation management, including quality assurance/quality control and HSES supervision across all project phases. Offshore installation will be performed by McDermott s Derrick Barge DB50 in the same time frame as the installation of BG s NCMA 4a Hibiscus Compression Module. Register at to access over 3000 global oil, gas & petrochemical projects

43 A leading designer and manufacturer of bespoke metering, hydraulic control systems and produced water treatment solutions Metering Manufacturer Produced Water Treatment Hydraulic Systems Manufacturer Customer Service Wickwar Aberdeen Great Yarmouth Dubai Dammam Moscow Singapore

44 - Issue 36 - Page 44 BUSINESS NEWS Oilcareers.com makes new appointment for success The world s leading online oil and gas jobs board, OilCareers. com, today announces the appointment of Karen Scott as the organisation s Head of Marketing. Karen has over 15 years experience gained during a highly successful career, working across a broad range of industries, with marketing roles at international organisations including Intercobra, International Paper, Mencap, Mitchell Kane Associates and Macphie of Glenbervie. A graduate from the University of Abertay, she speaks French and Spanish and is studying Italian. She said: My role is to take a leadership position and direct our marketing globally. Our offices are strategically located around the world but we remain a close-knit team any given day I have contact with our global teams to ensure we stay ahead of the game. Today the energy industry is the most challenging, thoughtprovoking, headline-grabbing sector in the world, while being the most rewarding, exciting and diverse in equal measure. The opportunities available are enormous in both their scale and their number, and we believe we have an obligation to support the global oil, gas and renewable industries by putting those opportunities in front of the right candidates. Karen s first weeks with the company now based at its new UK headquarters at Arnhall Business Park, Westhill, Scotland was a whirlwind world tour, covering 29,189 miles in just 23 days, visiting key energy hubs including Calgary, Houston, Perth and Dubai. The company specialises in providing jobseekers with an easy and effective way of searching for a new career within the various international energy streams, but Karen said it was OilCareers.com s international offering that provides the greatest strength. She said: Our team is multi-cultural, multi-lingual, located across different time zones and markets - we are very alive to the importance and the benefits of respecting local cultures, legislation, political issues and recruitment trends. We are well positioned to leverage our global scale with our offices in Dubai, Brisbane, Perth, Calgary and Houston. OilCareers.com provides an unparalleled service to both candidates and clients. Every month we feature up to 18,000 vacancies in all disciplines from engineering, geosciences and health & safety, to marketing, IT and finance. We showcase opportunities in every region from Alberta to Aberdeen, Abu Dhabi to Australia, and everywhere in between. I am very creative and my aim is to outsmart our competitors - candidates and customers alike can expect to see a lot of exciting technological and marketing innovations emerge from OilCareers.com. The specialist recruitment portal receives more than 1.3m visits from users in 193 countries every month, offering over 650,000 searchable CVs and more than 18,000 vacancies. In excess of 20,000 new candidates register with the site each month, while visits from users in key growth markets including Canada and Australia have increased by 67 percent and 74 percent respectively, year-on-year. Each year, OilCareers.com invests more than 1m in marketing to attract the widest possible talent pool of oil and gas candidates globally, and managing director, Mark Guest, believes the strategic appointment would ensure OilCareers.com continues to do so. He said: Karen brings a wealth of marketing talent and experience to OilCareers, gained from a broad range of senior roles with international organisations. Her appointment reflects our commitment to finding new and innovative ways to communicate with our customers and the global talent pool, ensuring we continue to attract those with the most sought-after skills to the most indemand positions. Karen s passion and energy matches OilCareers.com s own drive to remain the world s number one jobs board for our international client and candidate base.

45 - Issue 36 - Page 45 BUSINESS NEWS Taking the pressure off: A three-step approach to effective training for HPHT drilling The difficulties and hazards associated with drilling in High Pressure/High Temperature (HPHT) environments are universally recognised in the industry. The unpredictable nature of the kicks, the speed with which a well can become underbalanced, requires that drillers now accept a new philosophy. The key to preventing an HPHT kick is to create an atmosphere within the operation - especially at the rig site - which enables & motivates the team involved to concentrate special attention on the small changes in surface response during the drilling of the transition section through to the target sections. The positive communication to the Driller from everyone in the team monitoring returns is of the utmost priority! This is where we can really add value to this type of operation tour-by-tour. This enablement encourages the driller to get the well shut-in as quickly as possible at the very first indication that the well is flowing for any reason. It is no longer acceptable for HPHT wells to be flow-checked with the well open during the drilling of these pressure transition sections. Getting the well shut-in and flow-checking on the trip tank through the choke has become accepted practice in the HPHT section of the well. Once the well is shut-in with the BOP, drilling supervisors can then assess the situation and gather the evidence and facts which enable the well to be properly controlled. It will take time to gather the evidence. What are the shut-in conditions (shut-in drill pipe pressure, shut-in casing pressure, kick tolerance)? Do we have a ballooning or supercharging problem? Are thermal effects causing the well to flow? All this information has to be analysed before a well kill plan can be implemented. Another current key operational challenge is choke control and response during HPHT kicks, especially when we are using oil base drilling fluids. Toolpushers need specific knowledge and practice in order to recognise the different challenge in keeping BHP constant because of the different time delay responses in the dynamic U-tube. The increased risk of kicks and underground blowouts make the issue of well control in HPHT wells a major concern. Given such conditions and the requirements for special procedures and equipment for HPHT drilling, it is not surprising that personnel training should be a vital component of the preparation to help ensure a safe and successful well. It is therefore important at the planning stages to assess how the specific well control-related challenges associated with HPHT wells can best be addressed and to implement relevant training for the drilling team. This training can be viewed in terms of a three-step approach: 1) HPHT Well Engineering Workshop This training is designed primarily for the Operator s Drilling Engineers and Drilling Supervisors, allowing the personnel involved in the planning and supervision of the well operations to review and discuss both the generic and well/equipmentspecific HPHT well control challenges facing them, and to review and challenge the procedures in their Joint Operations Manual and/or well program. The training is intended to give participants an enhanced practical knowledge and understanding of the following critical areas, and be able to apply them to their own HPHT operations to optimise safety and operational efficiency: Well design Rig considerations & rig selection G&G considerations Casing considerations Cementing Drilling fluids considerations Drill bit considerations BHA & drill string considerations Completion & testing considerations Drilling the well HPHT well control HPHT well control exercises HPHT new technologies Managed Pressure Drilling (MPD) applications 2) Whole crew HPHT Training As the name suggests, this is an opportunity for the entire team the rig-and office-based engineering and supervisory personnel, the drill crews and key service company representatives to communicate and raise awareness of issues relating to the HPHT environment and the well to be drilled. This training can be run as part of the range of pre-spud activities but is just as often conduced after the HPHT well has spudded. 3) On-The-Rig HPHT Coaching Follow-up refresher training with an instructor conducting formal and informal sessions on the rig is often carried out for the drill crews close to the critical section of the well. The trainer (or HPHT Coach ) is on hand to: Give brief overview presentations of the problems that may be encountered in HPHT wells; Help the client implement the agreed HPHT procedures (e.g. in the Joint Operations Manual); Ensure that all the relevant rig personnel understand the importance of their role; Encourage good communication between all the parties. For more information about HPHT training or other drilling training services, please contact: Aberdeen Drilling Schools 50 Union Glen Aberdeen AB11 6ER U.K. Tel: +44 (0) info@aberdeen-drilling.com

46 ABERDEEN DRILLING SCHOOL HAS UNPARALLELED EXPERIENCE AND EXPERTISE IN DEDICATED HIGH PRESSURE HIGH TEMPERATURE (HPHT) WELL CONTROL TRAINING PREPARE YOUR HPHT TEAM FOR THE CHALLENGES AHEAD! CONTACT ADS NOW Concerns and hazards of drilling HPHT wells Communication challenges in HPHT Gas behaviour, kicks and control Gas solubility in OBM Rig equipment Practical simulation Effects of temperature and pressure on muds Volumetric method of well control Borehole ballooning effects Shut-in procedures Bullheading Case histories Very practical course - good for team building and improving HPHT knowledge. Driller This course has given me more confidence in my ability to control the well successfully. OIM I liked the practical angle the instructor used, and the way he motivated the class. Drilling Supervisor Very good capability of the instructor to get feedback from people. Good teacher! Rig manager Well structured with just the correct level on technical issues. Directional Driller

47 - Issue 36 - Page 47 BUSINESS NEWS MAREX Marine and Risk Consultancy Solutions for the Norwegian Market Marex Marine and Safety Services specialises in Marine and Risk Consultancy, Safety Management Systems, Safety Cases, Thorough Reviews, Audits, Risk Assessment and Studies, Technical Authorship and Rig Moves. Formed in 1998, Marex, whose core business is Safety Case authorship (introduced in UK under the Cullen Report following the Piper alpha platform disaster in 1988) now has two rapidly expanding departments, Risk and Marine, which operate from its harbour side offices in Aberdeen, Scotland. In addition, Marex do have one of its team working in Norway on a permanent basis and the company can count Ocean Rig, Songa, Transocean and Rowan in Norway as Marex clients. It is aware that interest from the market has potential for further expansion and, by the growing number of visits from the Norwegian market to our website; this article and ONS are extremely timely. The worldwide oil and gas market is changing and has been opened up to Marex as more coastal states now have a requirement for drilling companies to have safety cases. This is coupled with the fact that the oil majors are requesting drilling companies to have safety cases even if there is no coastal state legislative requirement. Marex for many years have been leading providers of Safety Cases and HSE Cases Internationally, having completed over 100 cases to date. Furthermore, the Macondo incident in the Gulf of Mexico will no doubt result in a more prescriptive legislative regime worldwide and a requirement for the expertise of companies such as Marex Marine and Safety Services to become involved in the risk assessment process worldwide. Regardless of legislation there is a duty to provide a safe place of work. Marex coordinates a team of marine, safety and risk professionals, working in such places as Norway, Egypt, Brunei, Singapore, South Korea, Trinidad, Bahrain, Turkey and US. The team comprises of Master Mariners, Marine Engineers, Naval Architects, Mathematicians, Human Factors, Risk and Safety specialists and Industry experts. This combination of staff allows Marex to very effectively perform a variety of tasks to support their clients well, demonstrated by its organic growth, based, largely, on repeat business and referral. The team, with only a few supporting consultants, now numbers twenty three, having been half that number only a few years ago. Continued over..

48 - Issue 36 - Page 48 BUSINESS NEWS The departments carry out work for oil majors, including Principal Marine Support provision, Ship Vetting, Auditing, Incident Investigation, Safety Management Systems, Safety Cases, Thorough Reviews, Bow Tie Risk Assessment, Practical Risk Assessment Workshops for Managements and Crews and the planning and execution of Rig Moves as well as undertaking Technical Authorship, OVIDS and General Marine Consultancy. Marex has developed innovative ways of ensuring that aspects of the PFEER (Prevention of Fire Explosion and Emergency Response) Regulations, and the Design and Construction Regulations are addressed. It has helped its clients introduce user friendly verification schemes. The Marex risk assessment techniques ensure that the workforce is better able to understand the Safety Case and the implementation of its related regulations. Greater involvement of the workforce is a key point made much of at the joint industry conferences on the topic. Marex employ QRA specialists who have developed robust qualitative risk assessment techniques to fit all levels of hazard, increasing their strength and reputation in this field. Ian McDougall, Managing Director, Marex, stated Over the last three years, there has been a big development overall in that work is now being undertaken on a worldwide basis rather than formerly only the North Sea. Consequently, the team is working in worldwide locations and growing fast. For more information, please visit our website or call +44 (0) Dynamic Edge on Cloud Nine with Champion Award An Aberdeen IT company is on cloud nine after winning a prestigious industry award. Dynamic Edge has been named a Cloud Champion by Microsoft UK in recognition of their pioneering use of cuttingedge IT systems. They are one of just a handful of UK companies to be awarded the coveted accolade. And managing director Rob Hamilton couldn t be more proud of his eight-strong team, who are based in Waverley Place in the city centre. It shows that we can deliver when it comes to providing the next generation of IT services, he said. We ve worked our way up through the different levels of Microsoft certification and can now truly call ourselves a champion in the industry. To earn the award, Dynamic Edge had to reach various sales and promotion targets, as well as pass a series of exams about latest technologies and systems. And even 41-year-old Rob had to do his share of pre-exam revision. Yes, I sat some of the exams too. To stay ahead in this industry, you have to prove that you understand the new products and technologies that are coming down the pipeline all the time, he said. A lot of my work is taken up with addressing business people and offering them solutions to their IT needs. Since we set up in 2009, we ve helped over 60 businesses, ranging from oneman bands to blue-chip organisations. Although Dynamic Edge offers a range of traditional IT services, the company won this latest accolade in recognition of its promotion of the latest cloud computing technologies, such as Office 365 and Dynamics CRM. Cloud computing is essentially the hosting of computer services, software and data storage over the internet. IT has traditionally been a capital expense to a business, but our whole model is based on shifting this to an operational expense based on per user, per month, explained Rob. This can reduce a business s IT costs considerably. At an obvious level, it means less server hardware is required. Businesses need not think it an all-or-nothing decision to move to the cloud. Most of our clients use it in co-existence with traditional systems. When Rob founded the company in 2009, he was determined to become a pioneer in cloud computing. It was very new then, and we wanted to become an early player. Microsoft recognised Dynamic Edge as the first UK partner to strategically lead with cloud computing technologies said Rob. The next year they awarded us Cloud Accelerate Partner status and this year we have reached the highest level of Cloud Champion. It s a tremendous reward for all our achievements in the industry. Josh Waldo, a senior director at Microsoft, said the company was excited by the continuing success of Dynamic Edge. The partners in this program are doing amazing things and are looking to differentiate their business and better serve customers with Microsoft cloud solutions, he said.

49 - Issue 36 - Page 49 BUSINESS NEWS AVEVA creates new technology opportunities AVEVA, one of the leading providers of engineering and design software for the plant and marine industries, marked its 45th anniversary this year with more groundbreaking advances which will continue to transform the ways in which engineering and design are carried out. Wider capabilities AVEVA continually extends the scope of its software through a carefully balanced programme of technology acquisition and development. This increases its customers capabilities not only by adding more functions to its solutions, but by progressively integrating functions and information to enable all engineering and design disciplines to collaborate on a single common project model. The latest advance in this area has been the acquisition in May of bocad, the leading provider of specialist structural detailing software. AVEVA customers had been asking for more capabilities in this important area and the acquisition ensures that their needs will be met with a best in class solution which will progressively become an integrated part of both the AVEVA Plant and AVEVA Marine solutions. Already a popular application across the plant, power and offshore industries, bocad makes an ideal complement to AVEVA s 3D plant and marine design solutions. Dave Wheeldon, AVEVA s CTO, explained, Tighter integration between piping design and structural steel detailing will allow engineers and fabricators to work more closely in a dynamic environment for clash detection and management of change. This will provide a major improvement in quality and efficiency. A development programme is already under way and future announcements will be made as product integration and enhancement progress. More, better, quicker Not only has technology advanced rapidly in recent years, so too have the challenges and opportunities facing the world s engineering industries. Exciting new technologies such as mobile and cloud computing are becoming more mature and reliable, ready for adoption as genuine business enablers. Now is the time to combine these opportunities to take plant design to a new level. Announced at ACHEMA, and to be showcased at the AVEVA World Summit in Paris in October, AVEVA will preview its new product which will define the future of plant design. The new product will be: The No 1 for Rapid Project Startup Setup in days not months, easy and rapid global setup and reducing time to deliverables. The No 1 for Design Efficiency Powerful drafting,

50 - Issue 36 - Page 50 BUSINESS NEWS intuitive user interface and streamlined design tasks The No 1 for Compliance standards based design and configurable design checking The No 1 for Removing Rework in Construction integrated laser and geometry data, simple tools for helping design, fabrication and construction teams to work more effectively together. The technical vision for this new product is: A 3D modelling capability which is real world representation quality, combining the best 3D graphics and laser scanning point clouds A 2D drawing capability fully automated and integrated with the 3D model Full interoperability with other design systems in the design process An architecture that can support project re-use and modular design An integration with laser scanning point clouds for dimensional control in construction Unlike other vendors who have brought out new products in past years, we will be doing this in such way that is interoperable with our existing PDMS product. To learn more visit Skibo Technologies warns businesses over security threat to sensitive data on mobile devices It s impossible to go anywhere these days without seeing people working on their laptops, talking on their smartphones or downloading the latest app onto their tablet or ipad. The increase in the number of mobile devices means that employees no longer have to be in the office to access work-related s, documents and other files: the airport lounge, café or even a train journey can be their desk. While advancements in technology have revolutionised the way people work, it also increases the risk to the security of sensitive data. Aberdeen-based Skibo Technologies Ltd is an expert in the field of digital security and provides clients with a range of solutions should their data security be compromised. Managing director Mark Mair urges businesses to be on their guard over the risk to data both from the loss or theft of mobile devices and the rise in the number of employees who want to use their own personal gadgets for work purposes. According to statistics, the UK is only second on a global scale behind the USA in terms of laptop thefts. Figures show that over 34,000 laptops are stolen each year, which amounts to almost 100 thefts every day. More than 3,300 laptops are either lost or stolen at the eight largest airports in Europe, the Middle East and Africa each week. Mark says, Losing a mobile device can be disastrous, not only from the perspective of commercially sensitive information being compromised, but also from the point of view of how that may appear to customers and the wider public. When we are called to help in the aftermath, we quite often discover that the employee has not taken any steps to protect the information contained on their mobile device, and this can be very worrying for the client. The client will have no idea whether the device has been misplaced or whether it has actively been targeted by a thief who is aware of the potential value of the information contained on the device. We would advise that all information is encrypted so that it limits the ability of a thief to gain access to or read the information. This is not something that takes a lot of time or effort, and should form part of a company policy on the use of mobile devices outside of the office environment. If the data has not been encrypted, then we have to believe that the information has been compromised and the only option is to remotely wipe the machine. If that kind of action needs to be taken then it is vitally important that the data

51 - Issue 36 - Page 51 BUSINESS NEWS has been backed up to ensure that it is not lost completely. There is mounting pressure on IT departments to allow staff to access company data on their own devices due to the growth of IT consumerisation they want to be able to use the latest gadget, but the reality is that many companies may only update their IT hardware every three or four years. Mark adds, While this may save the company the cost of having to provide equipment, they have to consider who owns the device and data on it. For example, if a company suspects that there has been a breach of IT security would that company be able to remotely wipe the data from a laptop or mobile phone if it does not belong to them? An employer cannot force an employee to hand over equipment if it does not belong to the company, and this will greatly hamper an investigation to pinpoint the source of a data breach. In order to effectively and securely manage corporate data I would also advise against providing staff with an IT allowance to purchase and maintain their own equipment. Every new device potentially comes with its own set of security flaws. A standard and approved list of equipment supplied by a company is the only truly effective way of managing security. Our advice would be to retain ownership of all devices on which commercial data could be stored and to ensure that a clearly written set of policies regarding the use of company IT equipment is set out. Businesses face a balancing act between trusting their employees and not adopting a big brother approach to monitoring all activity. Clearly in some environments where data may be more commercially sensitive than others the policies and checks should be adapted to reflect that, but for the most part we would recommend setting out the standards of use expected of staff and making sure procedures for dealing with breaches are in place. Based at 5 Rubislaw Terrace, Aberdeen, Skibo Technologies provides complete IT infrastructure and collaboration solutions and a specialist IT security division. For further information about Skibo Technologies, visit or call

52 If you think safety is expensive, try an accident! Dr Trevor Kletz, OBE Leading Safety Specialist, Author & Professor Matrix Management Systems provides web-based software solutions that streamline your quality, health, safety and environmental activities into an efficient and robust system. We provide global access to information that allows you to instantly communicate vital messages, learn lessons from the past and protect yourself from risk and accidents in the future. Let us show you how you can: Protect your Business Protect your People Protect the Environment Industries we support include: Oil & Gas Energy Aerospace Marine

53 - Issue 36 - Page 53 BUSINESS NEWS DeepOcean secures contract call-off for Light Construction and ROV Survey services for Statoil in 2013 Haugesund Norway, August 10th, 2012 DeepOcean, a subsidiary of DeepOcean Group, has been awarded a significant call-off under the current long-term frame agreement for offshore survey services for Statoil. In general the frame agreement includes services covering light construction services, ROV surveys with hull mounted Multi Beam Echosounder (MBE) and ROV surveys without MBE. As part of this contract, Statoil has awarded DeepOcean a call-off for 6 month operations in The call-off further includes options to extend the firm period with up to 6 additional months. The project will commence March 1, 2013 and it will be executed from the survey and light construction support vessel Volstad Surveyor. The project will be managed by an onshore project team in DeepOcean s Haugesund office. This contract is of great importance to our company and we are pleased to learn that Statoil will continue working with us also in At the moment we are in the middle of the similar campaign for 2012 and this award shows what confidence Statoil has in our offshore and onshore teams and the quality of work we deliver says Mads Baardsen, the President of DeepOcean. About Deep Ocean Group DeepOcean is an integrated provider of safe, high quality, innovative services and technologies for the subsea industry. Demonstrating an extensive track record, DeepOcean offers a breadth of subsea services including Survey and Seabed-mapping, Subsea Installation, Seabed Intervention, Inspection, Maintenance and Repair (IMR), and Decommissioning. This strong portfolio of services, coupled with a fleet of owned and controlled specialised equipment and multipurpose support spreads, enables DeepOcean to bundle its subsea services to deliver cost-effective, tailored solutions to meet individual client needs. DeepOcean strives for relentless customer focus and operational excellence, which is supported by a global team of highly professional and experienced project teams. The company delivers innovative engineering solutions and turnkey project management for complex offshore operations. The company is a leading IMR contractor and trenching operator in Norway and the North Sea and has a global presence with offices in Norway, UK, the Netherlands, Brazil, Mexico and Singapore. We are dynamic and pioneering... delivering innovative services and technologies for the subsea industry. SURVEY AND SEABED-MAPPING SUBSEA INSTALLATION SEABED INTERVENTION INSPECTION, MAINTENANCE & REPAIR (IMR) DECOMMISSIONING

54 - Issue 36 - Page 54 BUSINESS NEWS Specialised Management Services successfully meets NORSOK standards on Jette Field Development Project Specialised Management Services Ltd (SMS), a subsidiary of Alderley plc, announces today the successful manufacture and delivery of a Hydraulic Power Unit and Topside Umbilical Termination Unit to NORSOK standards. The contract was awarded to SMS by Cameron for the Jette Field Development. The Jette Field is situated in the Norwegian North Sea in Production Licence 027 D in 127 metres of water. Dave Howlett, General Manager of SMS commented, Both the units were designed and built at SMS Great Yarmouth Facilities over a 34 week period. They were built in strict accordance with client specifications and NORSOK regulations to ensure the best possible technical and commercial solution was offered. Dave continues by saying, SMS s regulatory knowledge and experience has enabled us to design to numerous internationally recognised standards. We are pleased that through another successful project delivery we are able to further demonstrate SMS s capability to comply with NORSOK rules and regulations, showing us as a credible player in the Norwegian sector. NORSOK standards are developed by the Norwegian petroleum industry to ensure adequate safety, added value and cost effectiveness for petroleum industry developments and operations. About Specialised Management Services Ltd (SMS) Specialised Management Services Ltd (SMS) is a leading global manufacturer of equipment and provider of maintenance/installation services for the oil and gas industry, specialising in hydraulic, pneumatic and electrical control systems. Bases in Great Yarmouth and Aberdeen are supported internationally by our parent company Alderley plc. More information about SMS can be found at: About Alderley Alderley is a multi-disciplined engineering company operating in the oil, gas and petrochemical industries producing effective and efficient solutions for the metering, processing, treatment and control of hydrocarbon products. Alderley has been manufacturing oilfield metering equipment since 1959 and has supplied more than 750 systems to more than 50 countries. Alderley has headquarters in the UK, and regional facilities in the UAE, Russia, Kingdom of Saudi Arabia and Singapore. More about Alderley can be found at:

55 - Issue 36 - Page 55 BUSINESS NEWS Plate&Shell- Heat Exchangers The Offshore Oil & Gas market had long been viewed as an excellent opportunity for Vahterus. Plate and shell exchangers with their small footprint and reduced weight, aligned with wide ranging pressure and temperature capabilities, should have proved an excellent opportunity for this technology offshore. However in the past, many cited limited references as a deterrent in such a critical operating environment. However,this is no longer the case. Traditionally,offshore platforms, and throughout major oil producing organisations, Shell &Tube exchangers are employed in many applications, as they are well accepted and understood. Offshore where space and weight is at a premium, the size and weight limitations of Shell &Tube technology are now exposed and this has led to many organisations searching for viable alternatives. During its early history, Vahterus built up considerable reference in niche offshore applications, such as glycol / glycol interchangers, but these had often been deemed non-process critical exchangers. Vahterus experience then developed further into areas such as LPG Heaters and Condensers, Lean / Rich Amine exchangers, LNG facilities and BTX (benzene-toluene-xylene) production environments. Today, Vahterus PSHE can be found in wide raging process critical applications including gas coolers and heaters, as well as direct crude oil processing. As an example Vahterus supplied 4 crude oil coolers directly to one of the largest Oil & Gas suppliers. This installation in the Gulf of Mexico was a retrofit to an existing platform, to provide additional cooling of crude oil, using seawater as the cooling medium. Shell & Tube technology was discountedbased on size and weight constraints; whilst Plate & Frame technology was eliminated due to concerns over the high risk of oil leakage (environmentaldamage). Within the design phase of this project, the operationalflexibility of the Vahterus Plate & Shell technology was highlighted. Key criteria were as follows: To minimize the chances of waxing, the exchangers were designed to run in co-current mode rather than the convention al counter-current operation. This effectively maintained a higher wall temperature of the plates and combined with high shear stress between the plates created by high turbulence, reduced the potentialfor waxing. The units were provided openable which allows the client access for inspection / cleaning. And to further save space the units can be mounted horizontally or vertically. For further information please call or visit our website Vahterus (UK) Ltd, Derby Road, Melbourne, Derbyshire, UK DE73 8FE Phone +44 (0) Vahterus Oy is the pioneer and inventor of -Plate&Shell-"' Heat Exchangers (PSHE). PSHE combines the high heat transfer capabilities and compact nature of plate exchangers, with the temperature and pressure capabilities of Shell & Tube

56 What is the value in having an electronic safety case? Answers to this question are many and varied but they generally fall into two categories: direct and indirect value. Direct value Direct value is bottom line value i.e. what will it directly save us? It is the easy place to look for value - saving time equals saving money. There is nothing wrong with this but it should not obscure the bigger picture and value. Examples of direct value. Saving time applies to everyone and the benefits should not be underestimated: Users, particularly offshore or in remove locations spent up to 40% of their time finding and accessing information. Safety related information can be more difficult to find and access quickly as it is often held in different places than normal drawings and engineering documents. Another problem is knowing which safety document to look in for the information you want. It may even be in several places! What about the cost of finding and using the wrong information An Electronic Safety Case presents you with the correct and latest information at the click of mouse. You don t have to go and find it. Saves on training - an Electronic Safety Case is an ideal training tool, particularly for ER. Reduces the time involved in making management decisions by providing live information and statistics. Trends in the use of the safety case can avoid costly confrontations with the - Issue 36 - Page 56 BUSINESS NEWS Regulators. Safety case management and update is faster due to the automatic capturing of changes. Updating in the future is easier and faster future proof once in place. Highlights errors and misalignment between safety documents causing costly stoppages, investigations and possible rework. Indirect value Indirect value is huge and varied but not so easily quantified as direct value. The indirect valve of averting a major accident is obvious and enormous. The main reason for having a safety case is to ensure that major accidents do not happen. A safety case has to be accurate, current, communicated and its requirements implemented. Failure to achieve any of these criteria means that your safety case is ineffective and the money spent on preparing wasted other than just complying with the law. An electronic safety case facilitates all of these criteria whether it s highlighting misalignment/anomalies between the safety case and its supporting documents, providing fast access the latest safety documents, communicating and making available key safety information in a clear, understandable and memorable way. An electronic safety case (or even a HSE Case for further value) has both direct and indirect value. Advantages/Disadvantages of Electronic Safety Case ELECTRONIC SAFETY CASE The Matrix approach offers far wider application than the traditional written safety case with links. It is a modern technological approach which acts as an integrated platform to access all safety related information quickly and easily in support of day to day operations. Gets the safety case off the shelf Designed for users Matches the way users want to know information i.e. by system and area. Users can go into any part of the site and quickly find out what the hazards are, where they are, the controls in place the manage the hazards and what they can and cannot do. Shows where hazards are across the site Provides performance information on safety case usage e.g. Who's using it, when and how long for; also how is it used and what is looked at the most etc Access to key safety information (from the Home page) in one click. No 'trawling' elsewhere. Ready to use as training tool Flexible, fast and easy to use Only one link to any document, system or website Tells the Administrator when a link is broken "Document search and filter facility allows users to 'look across"" the whole site " Highly graphical and dynamic. Communicates safety information in a more interesting and memorable way - 'a picture is worth a 1000 words Easier to navigate Quick and easy to manage, add and delete links to documents, systems and websites - not part of Safety case Being web based is easier to update format and structure Future proof TRADITIONAL PAPER APPROACH Old fashioned; users expect Internet approach Viewed as a document and stuck on 'DMS' the shelf Designed for specialists Not available Not available Not available Not available Not available Slow and 'clunky'; two dimensional i.e. 'up and down' navigation only. Also often divided up into several documents. Uses multiple links to the same document, system or website making it time consuming to manage Not available No filter facility Highly textural; loss of interest when reading a few pages on a screen Poor navigation to and from linked documents and 'up and down' the document Changes to the written safety case could be considered material changes requiring further review and approval Not applicable Not applicable matrix management systems

57 Stay Safe, Lock Out with Master Lock - Issue 36 - Page 57 BUSINESS NEWS Everyone wants to stay safe at work, but a failure in Lockout procedures can result in serious, even fatal incidents. Master Lock provides a full range of safety equipment to help prevent accidents during maintenance and repair. The Safety Series lockout products are designed to perform to the highest standards of protection that keep workers safe at work. Gate Valve Lock-out Master Lock gate valve Lock-Out device is extremely rugged for superior impact and chemical resistance to deny access and keep off a pressured situation. For more information on Gate Valve Lockout, please visit or contact Master Lock at sales_uk@mlock.com Features: Zenex composite body Withstands chemicals and extreme temperatures Ranging from -57 C to +177 C Completely surrounds the valve handle to prevent accidental operation Suitable for confined spaces and insulated pipes Centre knockout can be removed for rising stem gate valves Device can be locked with up to four padlocks Danger DO NOT OPERATE label supplied STAY SAFE, LOCK OUT Master Lock Safety equipment is designed for efficient and reliable isolation and helps protect your employees. safetyeu@mlock.com

58 - Issue 36 - Page 58 BUSINESS NEWS Bowtech Products Ltd. and N-Seatec Subsea Systems B.V. secure high definition camera supply contract from Allseas Bowtech Products Ltd, a market leading manufacturer and supplier of cameras, LED lighting, emergency relocation strobes, connectors, fiber optic multiplexers and slip rings for use in underwater or hazardous area applications, to any ocean depth, has announced that in partnership with N-Seatec Subsea Systems B.V. (N-Seatec), their agent in Benelux, have won a supply contract with Allseas. This contract with Allseas involves the supply of Surveyor HD (High Definition) cameras, replacing the existing HD cameras on all their Schilling UHD ROVs. Bowtech and N-Seatec secured the contract, despite tough and aggressive competition. They also won the supply of the associated connectors and various interconnection cables. Allseas are planning to upgrade all 30 cameras on their existing ROV fleet and have already ordered the first four cameras after testing them on the Schilling UHD ROV at the beginning of Bowtech s Surveyor HD colour zoom camera utilises Sony s latest block camera incorporating 1/3 inch HD CMOS CCD giving exceptional picture quality, 10:1 optical zoom lens, as well as horizontal resolution of 800+ TV lines. Standard video output is component, however HD-SDI and fibre output are also available. A unique feature of this camera, apart for the exceptional picture quality, is its size. The camera has a titanium 6000 metre rated housing, with optically clear sapphire window. The camera is smaller than the standard underwater colour zoom camera and therefore ideal for mounting on all ROV s. VISIT RIO OIL AND GAS IN THE SUBSEA UK PAVILION visual asset integrity monitoring solutions - BOP leak detection system - riser visual inspection system - anchor retrieval monitoring system - i-tube visual inspection system enquiry01@bowtech.co.uk tel: +44 (0) web:

59 - Issue 36 - Page 59 BUSINESS NEWS Getting Control of Your Documents in Oil & Gas Capital Projects Today There are few more capital intensive projects in the world today than in the oil & gas sector. Despite the slowing in global energy demand and the fragile global economic environment, multi-million dollar and sometimes multi-billion dollar capital projects are still on the rise. GlobalData s Oil and Gas Capital Expenditure Outlook 2012 estimates that over $1 trillion will be spent on capital projects upstream, downstream and midstream during 2012 and in Exploration & Production, Barclays Capital predicts that 2012 will see $598 billion of capital expenditure (Barclays Global 2012 E&P Spending Outlook). The sheer size of these projects, however, means a corresponding increase in risks for the operators and owners. Such risks include cost and project overruns and a negative impact on the bottom line, corporate reputational risk if safety and environment regulations are not adhered to, and the threat of expensive and time-consuming litigation if contractual requirements with the hundreds and sometimes thousands of third party organisations are not met. A 2012 study conducted by consultants Booz & Co also offers a salutary warning of the future sustainability of these projects. Of 34 large-scale oil and gas industry projects analysed, the report found that almost half underperformed after handover; 30 per cent cost more than initially planned; 12 per cent were completed late; and a third demonstrated significant operational issues once commissioned. Major capital projects in the oil & gas sector today are characterised by huge variety and complexity with varying contractual boundaries including a mixture of in-house and external engineering, procurement and construction, and a growing portfolio of projects using different contractual models and strategies. So how can such risks be alleviated? Probably the single most important means of achieving this is through the management and control of the thousands of documents that make up an oil & gas capital project today. Document management and control have come a long way since the spreadsheet-dominated and manual processes of a few years ago. Today, they are often automated and intelligent processes that collate, update, review and approve the reports, drawings, datasheets, warranties and specifications so vital to a major capital project. Through the ability to expedite work processes, projects and contracts, they can increase the visibility and transparency of the capital project and reduce risk. There are a number of key prerequisites to a successful document management and control system today. Firstly, it s important to distinguish between document management and document control. One ideally should support the other. Document Management is the mechanics of managing document information and securely organising documents in a way that allows them to be retrieved by anyone who needs them. Document control, however, is that additional business layer that sets the rules of engagement. It decides who should view documents and when and ensures that all business, contractual and regulatory requirements are adhered to. For the successful completion of a major oil & gas project, such processes must work in tandem. A global, scalable document management and control system is also vital. Few projects at the outset are able to understand the full extent of the project, the supply chain and further extensions or modifications that may be required. In such circumstances, it s essential that any document control system is able to scale up quickly and be able to manage multiple organisations across countries. Subsea equipment parts, for example, may be manufactured in China, constructed in Eastern Europe and then integrated into sub-assemblies in South Korea all requiring different documentation and involving different companies. A document management and control system that covers the full lifecycle of the asset is also crucial - from design, FEED and construction through to operations and eventual decommissioning. Suddenly deciding to bring in a document management and control system once through the FEED stage is often too late. Similarly, the construction to handover stage is also a key project milestone where all of the plant/facility drawings, layouts, equipment, and infrastructure information are handed over to the operator for the operations and maintenance of the site. The challenges for document control practitioners is ensuring that there is a seamless integration between different systems and the very latest engineering information provided to the operators something that cannot be achieved if the document management and Register at to access over 3000 global oil, gas & petrochemical projects

60 - Issue 36 - Page 60 BUSINESS NEWS Document Control Saves a $Million SuperOil document control system identifies incorrect paint used in an oil rig repainting project control system hasn t covered the complete lifecycle. Another key success indicator in document and management control today is finding the balance between an open-based, collaborative system and the need to continue leveraging internal processes, whether they be data warehouse, procurement or enterprise asset information (EAI), maintenance repair and operation (MRO), or enterprise resource planning (ERP) systems. SuperOil document control audit trail proves error - based on a real event S S A SuperOil A Acme EPC Document Controller Creates new transmittal with new fire retardent paint specification for oil rig re painting project Document Controller Acknowledge receipt of transmittal on behalf of Acme EPC $200 $20 The emergence of the cloud has also provided a future vision of a highly collaborative environment where Owner/Operators and EPC contractors can operate securely in the Cloud alongside suppliers, contractors, regulators and other external parties. The ideal option here is a balance between cloud and on-premise systems that can enjoy both the benefits of existing inter-organisation integration and internal systems but also enables access to the cloud so that external parties can collaborate. A A A Acme Engineer Reviews and accepts transmittal and documentation Engineer/Document Controller Compiles construction package for sub contractor but includes earlier paint specification Procurement Manager Awards Paint Package to Best Contractor Acme EPC Sub-contractor carried out work as per instructions (with earlier paint spec) Inspector S Reports that wrong paint was used $1,000 to paint oil platform S A Project Manager Instructs Acme to rectify error showing the acceptance of the correct specification from original transmittal Based on the strength of the audit trail Acme EPC accept liability and issues revised Construction Pack to sub-contractor with correct specification Sub-contractor re-paints oil rig at Acme EPC's cost $25 $2,000 $5,000 $987,520 Document control error by Acme EPC $200 $500 $988,020 Budget $995,965 $995,965 $994,020 Total cost $1,989,985 Extra cost $994,020 McLaren Collaboration Workspace (CW) and McLaren FusionLive, for example, are two cloud-based solutions that combine the advantages of controlled and collaborative environments - retaining control of engineering information with multiple document management and control features while, at the same time, enjoying the full benefits and scalability of the cloud. In this way, the solutions provide the best of both worlds offering the consistency, accuracy and visibility of all project information but accessible from any web browser and with limited maintenance requirements or pressures on IT (being hosted from secure server installations in the UK, USA and UAE). It is the cloud s ability to put IT systems in the background which is a key value-add to document management and control today. Too often in the past, technology has tended to dominate in the deployment and design of enterprise content management systems so much so that it became the all consuming driver at the expense of proper business and project criteria. The emergence of the cloud has played a key role in putting technology in its place. Today more than ever, there is a need for scalable, purpose-built flexible document control applications with built-in business processes and which are able to cover the entire asset lifecycle and align themselves seamlessly with existing internal systems. Get it right and control your documents and you can ensure projects are completed on time and on budget, deliver value and profitability throughout the asset lifecycle, and have a significant impact on the bottom line.

61 - Issue 36 - Page 61 BUSINESS NEWS TECDOS - providing the offshore industry with drive systems for a wide variety of maritime applications RUD chains, a leading manufacturer of high quality round steel chains offer unrivalled applications for a wide variety of maritime applications with their latest innovation TECDOS. With over 130 years of expertise to draw upon, you can be confident in the standard of their products. RUD s latest innovation, TECDOS has been setting high standards across the offshore industry due to its distinctive features. RUD s highly wear resistant round steel chains are extremely robust, offers three-dimensional mobility and has an exceptionally high resistance to corrosion due to the vigorous surface coating that is applied to the chain. The TECDOS application can be used across a wide range of maritime projects which involve the use of round steel chain drives. So far TECDOS has been used to assist opening and closing of flood gates, lifting and lowering containers, moving and swivelling port cranes, launching lifeboats to telescoping crane booms to name a few. The scope of TECDOS is very great says product manager RUD Chains There are many maritime applications that TECDOS can fit to now and their is also lots of potential applications where round steel chain drives could be used for future projects and new innovations. The strength and quality of RUD chain used in their TECDOS system is exceptional. The breaking forces of the single chain strands range from 20 to 1287kN. The strongest strands can pull loads weighing more than 10,000 tonnes or lift goods weighing up to 26 tonnes, meaning it has the power to work successfully across even the most demanding environments. There is no doubt that TECDOS offers a great range of advantages with its systems high durability and long service life when used underwater, offshore or in harbours. RUD have great knowledge and technical experience to aid in projects in the industry whether you are looking for a drive for a ship loader, to unique handling systems for the deployment of large structural fabrications on the seabed, RUD have standard and totally specialised solutions to help in maritime projects. As TECDOS is such a versatile application RUD are always looking for new projects within the maritime environment to best utilise the TECDOS advantages. For more information follow RUD at their new Social Zone for all their latest news and updates

62 - Issue 36 - Page 62 BUSINESS NEWS Reef Subsea rebrands all its companies in Norway and extends geographical footprint to improve service to clients Reef Subsea announced today that it is set to fully rebrand and align its companies in Norway namely Technocean and Scanmudring-Rotech Subsea to position itself as a dynamic and integrated contractor in the subsea market. Coupled with an extension of its geographical footprint, the Group is well positioned to serve its clients with specialised services under one company name. The move ensures Reef Subsea provides its turnkey subsea services - mainly IRM & Subsea Construction, Installation & Trenching, and Dredging & Excavation services with increased capabilities to listen to and serve its clients as a fully integrated subsea contractor. Technocean AS, headquartered in Bergen, is now rebranded Reef Subsea Norway AS. The latter has been providing a diverse range of staff and marine services up to light subsea construction projects for major operators and contractors over the last 15 years. Reef Subsea Norway with a new, international management team will concentrate on providing packaged IRM and subsea construction support services as well as operations support over the life of field services. Its engineering and project management is also being significantly reinforced. Reef Subsea Norway is also extending its operational footprint out of the Norwegian continental shelf to the other side of the North Sea, with Reef Subsea UK Ltd based in Aberdeen. Offering the same services as Reef Subsea Norway, and united under a common management team, Reef Subsea UK will improve the understanding of international clients needs and be closer to customers in the UK. Both companies are planning to develop out of the North Sea towards Denmark, Holland, the Baltic region, and further to West Africa, the Mediterranean and Brazil. Scanmudring-Rotech Subsea, which specialises in dredging and controlled flow excavation services since the acquisition of Rotech Subsea by Reef Subsea last November, will now trade under the Reef Subsea Dredging and Excavation name (1). The new group has companies in Mandal (Norway), Aberdeen (UK), St John s (Canada), Houston (USA) and Singapore and operates the world s largest range of equipment ranging from precision dredging to controlled flow excavation. Reef Subsea Dredging and Excavation is now a global company with unmatched assets capabilities and skills in seabed dredging and excavation services. Its clients include oil and gas companies, as well as main contractors sub-contracting these tasks to specialised contractors. Reef Subsea Dredging and Excavation works independently from Reef Subsea companies and offers the same cost-based solutions to all its clients, whether they are from Reef Subsea Group or not. Tim Sheehan, Reef Subsea Chief Operating Officer, said: Our decision to rebrand our companies was taken last winter as a consequence of the acquisition of Rotech Subsea, and of a new strategic orientation we wanted for Technocean. We have now all our activities branded under the same name and values. This also includes Reef Subsea Power & Umbilical, our installation and trenching business, which has successfully developed since We are delighted to offer now our clients clear and consistent integrated services all under the same company name. Duncan MacPherson, Managing Director of Reef Subsea Norway, said: It is an important milestone for the company. Our strategic vision is fully supported by the Group and all our employees are associated to the past and recent successes. The rebranding and geographical extension of our activities gives us all a fresh start, and we look forward to improving the service to our clients from both sides of the North Sea under a common management. Register at to access over 3000 global oil, gas & petrochemical projects

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64 Service at its best Searoute Group Limited Arca Business centre Dunnswood House Dunnswood Road Cumbernauld G67 3EN The Sea route group consists of two companies: Searoute International Limited which specialise in shipping Agency, Forwarding and Transport services and Searoute Port Services Limited which specialise in the provision of Cargo Handling Services, Ships Agency and the provision of labour for both yard and shipside work. Whatever your cargo needs we have the experience and ability to provide you with a service backed up with people you can trust info@searouteportservices.co.uk Searoute International Limited From it s formation in 1997, Sea route international has grown to be one of Scotland s largest and best independent shipping companies. We have tailored our portfolio of services towards our customers needs and built up an enviable reputation as being a company that can provide a wide variety of Shipping, Warehousing and Transport services backed by experienced and friendly staff. Liner Agency Safmarine MPV - Breakbulk to and from West Africa K-Line - Container and Ro-Ro Services Worldwide Worldwide Import and Export LCL Service BBC Chartering & Logistics - Worldwide Parcel & Project Service Shipping Services Import and Export FCL movements Worldwide European Full and Part loads Freight Forwarding Special Requirements Cargo Project, Heavy Lift and General Charta Perishable Containers Warehousing and Handling Container loading and devanning Short and Long Term Storage Order Picking and Distribution Searoute Port Services Limited Are a leading supplier of Cargo Handling and Vessel Agency for Shipowners or those representing the interests of the Cargo owners. Incorporating Aberdeen Cargo Handling Services, Port Services has the technical experience, knowledge and people to take care of your vessel and/or cargo needs throughout Scotland. Ships Agency Full range of Agency Services, for General, Liner and Offshore vessels Cargo Handling Receiving, Loading, Discharge, Lashing & Securing for general Project and bulk cargoes Container loading and unloading Labour Provision Yard Work, Banksmen, Crane & Forklift Operators for short and long term contracts.