The newsletter for Xodus Group clients & employees

Transcription

1 01 02 CEO s Introduction Clever tools that improve performance 05 Decommissioning Xodus advises Japan on decom trends The newsletter for Xodus Group clients & employees Subsea & Pipelines Egypt engineering expertise Development Reducing costs of Africa s onshore remote basins 07 Subsea Cables Supporting major subsea cable installation 08 Renewables Holyhead Deep marine energy project 09 Software Xodus and Green Marine join forces 10 Vibration Tackling acoustically induced vibration

2 02 In East Africa, we ve been involved in multiple onshore greenfield developments. You can read about our guidance for navigating the challenges of developing remote fields and pushing drilling costs down on page 03. We have also been active in Egypt for a number of years our most recent subsea project with PICO on the Amal-C project and are gearing up to open an office in-country this summer. CEO s Introduction International innovators As the industry continues to show resilience, with global projects getting off the ground, we are proud to be supporting operators in the quest to produce from new and at times complex fields. Our decommissioning team task force has recently supported Japanese government organisation JOGMEC in providing companies in the country with a better understanding of processes and how to manage their global asset and abandonment liabilities page 05. The team presented its findings on decommissioning to an operator audience in June. We are pleased to be sharing these findings having built up specialist decommissioning experience over several years. The same can be said of renewables. Low carbon has been a core focus for our business for over a decade, long before the current wave of diversification from the oil and gas industry. In the last few months, we have shown the depth of our renewables capabilities with successful projects with Minesto and the Guernsey government and a partnership with Green Marine where we are offering a new innovative solution for the maintenance of offshore renewable assets. I hope you enjoy this latest edition of Xtra. Wim van der Zande, CEO

3 03 Development Reducing costs of Africa s onshore remote basins Central and East Africa contain several rift regions which make up a large landlocked area, covering tens of thousands of square kilometres with significant estimated oil reserves. A number of operators have started developing discoveries, however logistics, oil composition, technology and power requirements can present challenges and significantly impact on development costs. Xodus has been involved in supporting exploration and onshore greenfield developments for several years which have included fields in Uganda, Somalia, Kenya and Chad. This unique field development design experience enables us to advise on both the subsurface and surface infrastructure together with the low-cost drilling technologies that can facilitate economic production. Logistics issues One of the main issues common to all remote projects is the difficulty of exporting the oil. Firstly, there is the large distance between the reservoirs and the coast. The second challenge is the type of oil, which again tends to be similar throughout the region with an API of This is good in that it is light, however the crude has a long waxy tail of up to 40% wax. This has a clear impact on the export solution as every time the oil cools, wax is formed. In Uganda and Kenya, heated pipelines stretching nearly 800km are being proposed, which brings a hefty price tag to the overall project cost. This means the operator must find sufficient oil in any location to justify the exploration, lift and transport costs and is why it takes a long time for projects to mature. Facilities are also limited in their train and vessel sizes to tight logistic envelopes, which results in multi-trained facilities also impacting on cost. Local content Whilst World Bank involvement in a number of developments has smoothed the regulatory process, there are still social issues to consider when bringing a potentially large investment into a local area. These developments do not always equate to creating local skilled jobs as unlike built up locations, these fields are home to many nomadic tribes. This can mean importing a large workforce into the local area, creating local tensions. continued

4 04 Development Reducing costs of Africa s onshore remote basins Reducing drilling costs Uniquely Xodus understands drilling, subsurface, flow assurance and facilities design and we are consequently well placed to optimise well pads to reduce drilling costs. Some of the reservoirs are characterised by fairly low productivity wells, so a large number of wells are needed to get the flow rates required to meet the economic criteria for export routes. When drilling hundreds of wells, minimising well costs needs to be a top priority. Batch drilling, where the drilling contractor can move quickly from well to well without directing the drilling derrick, is key to lowering costs. Traditionally operators would be forced to disassemble a rig, however batch drilling on multi-well pads enables the operator to have both a rig drilling and also a completion rig following up, to deliver much needed efficiencies. Xodus is designing well pads to facilitate batch drilling using common drill pits for drilling muds and drilling cuttings. This allows the operator to drill up to 12 wells with one set of cellars. It is important that the wells can be worked over efficiently, as many reservoirs suffer from a lack of pressure and require artificial lift. We have created sunken cellar designs that allow the various drilling and workover operations to take place. The team has also created innovative designs for well testing which minimises the amount of equipment needed at the well pads. A waxy problem Electric submersible pumps and progressing cavity pumps are required because of the low reservoir pressures. This coupled with the waxy nature of the oil, presents interesting flow assurance issues in terms of emulsification and transportation. The fields can have high water cuts and potentially produce stable emulsions. Xodus is supporting these developments with wax deposition and emulsion models to understand where and to what extent wax/emulsions form, and whether remediation is required depending on the flow regime. To deal with the wax, chemicals can be used or technologies such as electrical heat tracing, hot water or flushing systems can be adopted. We can look at what is appropriate for the field, working with the vendors to understand the limits of the technology, and the operators production technology teams along with independent chemical labs to offer the best solution. Using Arctic equipment in Africa Due to the high numbers of low productivity wells in the East Africa rift basins and requirements for artificial lift, operators face high power costs. Optimising power generation is critical to get efficient facilities design. Up to 50% of facilities cost can come from power generation. Interestingly, we are recommending Arctic equipment to solve some of the flow issues in Africa. The oil can have a wax appearance temperature of around 70 C with pour points (where the oil stops flowing) at around 45 C. Even though the reservoir is on the equator, the surface temperature is still not hot enough. We have introduced some clever solutions, such as heat exchangers more commonly designed for the Artic, to prevent liquids cooling too much and forming wax. For more information on East Africa field development contact kent.massey@xodusgroup.com

5 05 Decommissioning Advising Japan on decom trends Our decommissioning team has delivered a trend survey to Japanese government organisation JOGMEC (Japan Oil & Gas and Metals National Corporation) to provide oil and gas companies in the country with a better understanding of the decommissioning process and how to manage their global asset and abandonment liabilities. The team spent 6 months researching and collating international decommissioning best practice and presented the findings to over 100 operator attendees at JOGMEC s Technology Research Centre in Chiba, east of Tokyo. We provided guidelines to provide the Japanese operators with practical information on how to approach planning for cessation of production and asset retirement activities. The team also presented cost estimation guidelines and templates to assist Japanese operators to understand the cost modelling methodology and refining cost estimates as the asset approaches cessation of production. The project covered well abandonment; decommissioning technology; cost estimation; regulations; HSE; security; tax; insurance; the overall stakeholder mix and planning methodology guidelines. It builds on our wide-ranging experience on a number of technical and commercial decommissioning projects over the last five years, following the establishment of a dedicated decom division in JOGMEC visited Aberdeen earlier in the year to attend meetings with organisations involved in decommissioning. The organisation is also keen to carry out joint research projects with UK companies and technology organisations and is exploring potential joint initiatives through Xodus. Many of the Japanese oil and gas companies are nonoperating partners in North Sea fields and assets, as well as operating partners in regions such as South-East Asia and Australasia. The companies were keen to develop knowledge across the decommissioning spectrum to ensure they are informed on latest technology developments and can assess decommissioning cost estimates provided by their field partners. Japanese operators want to ensure they understand the extent of their potential liabilities because of the joint and several decommissioning liability which applies in the UK and many other regions. In certain cases, Japanese non-operating partners operators have inherited decommissioning liabilities which they had not previously anticipated. Consequently, there has been great interest in the project. Image JOGMEC

6 06 PICO Petroleum Integrated Services is developing a new wellhead platform, Amal-C, at the Amal Field in the southwest region of the Gulf of Suez, Egypt, which will allow a substantial increase in the production levels of the field. We have provided subsea support throughout the EPCI phase for a new pipeline between Amal-C and the existing Amal-A platform, which will handle the additional production rates. Subsea & Pipelines Egypt engineering expertise Our support to PICO has been ongoing since late 2015 and has included the detailed design of the pipeline, spools and rigid risers, third party review for line pipe procurement, incountry and offshore support to the execution stage and ad-hoc engineering services to manage scope changes based on the outcomes of survey activities. Engineering has been executed out of London and adds to our growing track record in North Africa and the Mediterranean. Detailed design engineering and analysis has been performed by a multi-disciplinary team covering scopes for materials, flow assurance, pipelines, risers and installation, resulting in the preparation of design documentation, specifications and datasheets for the construction phase. Xodus has since maintained a close relationship with PICO, providing in-country support for review and approval of the construction engineering package and subsequent offshore support in the form of Client Representation during the pipelay, spool and rigid riser installation campaign. Project Manager Mohamad Farid, said: During installation several unforeseen challenges were encountered because of pre-installation survey activities. These challenges included the presence of seabed pinnacles along the submarine pipeline route, requiring rerouting of the pipeline and redesign of the tie-in spools, and obstructions on the existing Amal-A platform preventing installation of the retrofit riser as per the design location. By maintaining the same team and project knowledge from original detailed design works, we were able to overcome challenges efficiently through a combination of close on-site engagement with the client and the installation contractor, as well as innovative fit for purpose solutions, which saved the client time and money. Mohamad Farid, London Subsea and Pipelines Manager Image Aquaterra Energy

7 07 Subsea Cables Supporting major subsea cable installation The purpose-built NKT Victoria cable-laying vessel has successfully laid the first HVDC cables in the Moray Firth as part of Scottish and Southern Electricity Networks 1.1bn Caithness-Moray transmission project with the support of Xodus. The Caithness-Moray project is required to transport renewable electricity from across the north of Scotland to areas of demand across Scotland and beyond. It is on schedule for completion in 2018, enabling a further 1,200MW of renewable generation capacity to connect to the grid. Andrew Wylie, Scotland Operations Director said: This is an exciting time for the team as the project hits another key stage in the process. Projects involving submarine interconnection demand rigorous risk management and know-how in multiple technical disciplines. With our years of experience on diverse projects, we are providing marine engineering and installation advice for all aspects of the submarine cable installation and providing guidance as the Employer s Representative on board the vessel. Andrew Wylie, Scotland Operations Director We are providing marine engineering and installation advice for the submarine cable installation as well as guidance as the Employer s Representative on the vessel. The state-of-the-art vessel completed its first campaign from Noss Head in Caithness to the midpoint of the cable route. The remaining cable is set to be laid from Portgordon in Moray to the end of the previously laid cable this summer. Image NKT

8 08 Renewables Consent given for Holyhead Deep marine energy project Xodus delivered the Environmental Impact Assessment (EIA) and licence application for Minesto s Holyhead Deep project west of Anglesey for which consent was confirmed by Natural Resources Wales. The consent is for a 0.5MW Deep Green device which will demonstrate and prove the technology ahead of plans for installing a 10MW array at the site. The first phase of the project will include a single Deep Green device unit, seabed foundation and a surfaced moored buoy, with installation planned this year. The in-depth EIA we carried out considered the potential impacts on fisheries, marine mammals, sea birds, marine archaeology and cultural heritage as well as shipping and navigation, which were concluded to be not significant. Consent for a 0.5MW device Plans for installing a 10MW array At a depth of meters Potential 80MW site Utilising up to 160 devices Holyhead Deep marks the starting point of the industrialisation of the Deep Green technology. It is the first low-velocity tidal energy project in the world. Holyhead Deep matches all the site requirements by providing low-flow tidal velocities (1.5-2 m/s mean peak flow) at a depth of meters. Following successful deployment and testing of the first installed power plant, more Deep Green devices will be installed to form a tidal energy array. Minesto holds an Agreement for Lease from the Crown Estate for a 10MW installation (20 power plants). Xodus is supporting Minesto on a scoping report for the potential development of an 80MW site which would include up to 160 devices installed in phases in Holyhead Deep. Image Minesto

9 09 Software Xodus and Green Marine join forces We have formed a partnership with Green Marine to launch a new integrated service for the maintenance of offshore renewable assets. The lifecycle approach will utilise our integrity management software tool XAMIN to capture and monitor live data from offshore marine assets with Green Marine providing the physical offshore inspection and repair services. The onestop solution aims to streamline an asset s performance, providing efficiencies and preventing downtime, targeting offshore wind, tidal and wave energy devices, cabling and associated infrastructure. CEO Wim van der Zande said: We believe XAMIN has great potential for renewable projects as it will improve the visibility of integrity issues and the partnership with Green Marine means that any anomalies can be inspected and dealt with before they grow into a major issue. The renewables sector can learn lessons from the oil and gas industry where poor data management is causing problems when identifying component condition or proving life extension. If the operator has centralised data management from the outset, failure modes can be identified, which removes doubt from fault investigations. Jason Schofield, managing director of Green Marine added: We believe there is a gap in the market for a truly joined up integrity maintenance service and our partnership with Xodus will deliver efficiencies with significant positive impacts for the management and monitoring of subsea marine assets. We can help operators gain a better understanding of their components and reduce risk, cost and downtime. XAMIN allows operators to capture design, installation, testing, operating, inspection and decommissioning information in a single system; reducing data losses, increasing efficiency of access and improving visibility of integrity issues. It is built around an asset hierarchy, allowing all data to be tagged to the appropriate component, which allows cross referencing. Within the operational phase XAMIN can collate all information being measured on the asset and cross reference to allow a complete picture of operability and integrity to be viewed. Once collated, data can be used to benchmark design assumptions and reduce safety margins or increase field life. We believe there is a gap in the market for a truly joined up integrity maintenance service Jason Schofield, Managing Director, Green Marine Image Green Marine

10 10 Vibration Tackling acoustically induced vibration Multiple excitation sources exist within modern process plants that can cause damage due to vibration related degradation mechanisms. Without identification and control, these can lead to component failure and the associated safety, environmental, business and reputational losses. One such issue is acoustically induced vibration (AIV) choked gas flow through pressure reduction devices which can generate high levels of acoustic energy. This can excite the higher frequency pipe shell modes of the downstream piping and potentially lead to excessive cyclic stress at discontinuities such as small bore connections and pipe supports. The vibration team has developed a robust assessment methodology to reduce the risk of AIV failures which encompasses screening assessments through to detailed modelling and analysis to fully quantify the integrity risk. Our expertise and experience can identify and solve AIV issues on new and existing plants. Threat Choked gas flow is present at multiple areas of modern process plants, including: pressure relief devices; blowdowns; pressure control; restriction orifices and recycle / anti-surge. Shock noise and turbulent mixing develops high levels of acoustic energy. This is broadband and high frequency and can cause high external sound pressure levels and excitation of the downstream piping higher (shell) modes. This leads to both a health and safety issue because of the excessive noise levels and an integrity issue due to the potential fatigue damage to the piping system. Vibration of the wall of the parent piping can also lead to excessive cyclic stress at discontinuities such as small bore connections and welded pipe supports. The increased use of alloy materials such as duplex has led to the use of thinner walled piping with the unfortunate consequence of being more vulnerable to shell mode excitation due to its greater flexibility. Because of the high response frequency (typically Hz), time to failure can be very short potentially a one-off event such as activation of a pressure relief valve. continued

11 11 Vibration Tackling acoustically induced vibration Our solution AIV is a well-studied phenomenon and basic screening methodologies have been available since the 1980s. However, our engineering team has been involved in the development of more advanced screening assessment techniques that are now published as part of the Energy Institute s Avoidance of Vibration Induced Fatigue Failure in Process Pipework (AVIFF) guidelines. As well as deploying cutting edge data gathering and analysis hardware and software, we have invested in proprietary technology to ensure a class-leading service. Our HAWXEYE tablet based analyser and asset integrity management (AIM) software allows customer personnel to manage the vibration integrity threat on their own assets, accessing remote assistance from Xodus engineers only when required. The Hazardous Area Long Term Monitoring System (HALTMS) allows vibration threat to be quantified over extended periods without the requirement for Xodus personnel to remain on-site. We can deploy the optimum engineering techniques to increase understanding and accuracy of analysis while reducing the time and associated cost. As well as proprietary software, such as HAWXEYE, for anomaly management and rapid screening of piping to the Energy Institute AVIFF guidelines, we have experts in the use of: ANSYS finite element modelling ANSYS CFX computational fluid dynamics Caesar II static and dynamic pipe stress analysis PULS acoustic modelling and simulation OLGA multiphase flow modelling Solidworks mechanical modelling Pipenet transient surge analysis. Our vibration engineering division has over 250 years combined experience managing vibration related concerns across the spectrum of process industries. We have engineers permanently based in the UK and Middle East providing us with a global reach. Our integrated multi-disciplinary approach allows us to call upon the technical competencies of experts in process and facilities, subsea engineering and technical safety meaning we are leading the way in vibration engineering.

12 12 For business development enquiries please contact: IN BRIEF Rachel Mair Global Business Development Co-ordinator T E rachel.mair@xodusgroup.com Offshore wind Guernsey study published A preliminary feasibility study that we carried out on behalf of the Guernsey government concluded that offshore wind technology could be viable in several locations off Guernsey s coast. The study was funded jointly by the States of Guernsey and Guernsey Electricity and found that there are a range of technically feasible options to develop an offshore wind project off Guernsey. The States of Guernsey Renewable Energy Team will seek to progress its work in this area, before discussing the viability of such a project with the Committee for the Environment & Infrastructure in due course. Growth New office to open in Egypt As a result of continued project growth and our commitment to Egypt, we are pleased to announce that we will open an office in the Maadi district of Cairo. Xodus has been present in Egypt since 2009, delivering major work for oil majors as well as independents, ranging from integrated development projects and advanced engineering to advisory services for both onshore and offshore assets. The primary function of the office will be to act as a technical interface between our UK bases, which will be responsible for delivering most of the work, and our clients in Egypt. The office is expected to be fully functional by Summer Regional enquiries mohammed.khalil@xodusgroup.com