asian oil and gas-january-february 2014

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aogdigital.com January - February 2014 ASIAN OIL & GAS AOG Planning for China’s new energy waves page 14 Asset management Content is copyright protected and provided for personal use only - not for reproduction or retransmission. For reprints please contact the Publisher.

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Page 1: Asian Oil and Gas-January-February 2014

aogdigital.com▼

January - February 2014

AS IAN O I L & GA S

AOG

Planning forChina’s newenergy wavespage 14

Asset management

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Page 2: Asian Oil and Gas-January-February 2014

Email: [email protected]

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Page 3: Asian Oil and Gas-January-February 2014

January · February 2014 | AOG 3aogdigital.com

REGIONAL UPDATES

4 BriefsAsia-Pacifi c oil and gas news and views

SHIPYARDS

6 New software spreads in South Korean shipyards

Following the Deepwater Horizon tragedy, a major operator started a global roll-out of the Zenator verifi cation tool. Since then, the software has been successfully deployed on Western Australia’s Gorgon project and others around the world.

GEOLOGY & GEOPHYSICS

10 Seismic roundupResearch, exploration and development activity continue to expand industry’s understanding.

FEATURES

12 Sliding sleeve completion systemsWeatherford’s Sandy Liu, Winston Zeng, and Don McRobb discuss how the system can improve production while lowering costs.

14 Upward trendsWith LNG and unconventional usage on the rise, Mark Charman of Faststream Recruitment Group, discusses China’s changing workforce landscape.

NCE SUBSEA FOCUS

NCE1 World-class subsea solutions from Norway

AOG’s Elaine Maslin and some of Norway’s technological innovators weigh in on trends in subsea technology, processing, and more.

CONTRACTS

16 Sparrows Group triple contract winThree recent contract wins have helped to boost the crane maintenance and operations services supplied by Sparrows in Asia-Pacifi c.

COMPANY NEWS

18 ActivityJee Ltd. signed an MOA with KOSHIPA in November 2013 for the provision of its courses, due to begin in 2014.

PEOPLE

20 SpotlightPower and automation technology group ABB named Chunyuan Gu head of its operations in China and North Asia, effective January.

PRODUCTS & TECHNOLOGY

22 SolutionsNew tools and techniques to improve operational performance.

FACTS & FIGURES

24 NumerologyA capsule view of interesting industry statistics.

Cover image courtesy Faststream Recruitment Group

Contents

12

1414

22

NCE1

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Page 4: Asian Oil and Gas-January-February 2014

AOG | January · February 20144 aogdigital.com

www.aogdigital.com

Atlantic Communications LLC1635 W AlabamaHouston, Texas 77006-4101, USATel: +1 713 529 [email protected]

Editorial DirectorNina RachTel: (+1) 713 831 [email protected]

Managing EditorAudrey [email protected]

Associate EditorSarah Parker [email protected]

Web EditorAnthresia [email protected]

Design & LayoutBonnie James

ADVERTISINGREPRESENTATIVESSingapore, Malaysia, Indonesia, Thailand & KoreaAnthony ChanTel: (+65) [email protected]

China, Hong Kong & TaiwanHenry XiaoTel: (+86) 21 3921 [email protected]

ItalyFabio PotestaTel: (+39) 10 570 [email protected]

Netherlands/Austria/GermanyArthur SchavemakerTel: (+31) 547 [email protected]

Norway/Denmark/Sweden/FinlandBrenda HomewoodTel: +44 (0) 1732 [email protected]

United KingdomMike CrampTel: +44 (0) 1732 [email protected]

France/SpainPaul ThornhillTel: +44 (0) 1732 [email protected]

North AmericaAmy VallanceTel: (+1)281 758 [email protected]

John LaulettaTel: (+1) 713 874 [email protected]

PublisherBrion PalmerTel: (+1) 713 874 [email protected]

Associate PublisherNeil LevettTel: +44 (0) 1732 [email protected]

Regional Briefs

AS IAN O I L & GA S

AOGJanuary ·February 2014

Australia• EMERSON CHOSEN TO POWER PRELUDE

Emerson Network Power was selected as the main uninterruptible power supply systems provider for Shell’s Prelude fl oating LNG vessel.

Currently under construction in Ko-rea, Prelude is the world’s fi rst fl oating liquefi ed natural gas project. It will be deployed in the Browse basin offshore Western Australia. In 2010, Emerson Process Management, another global business of Emerson, was selected as the main automation contractor for the Shell Prelude development.

China• CNOOC’S 2014 BUSINESS PLANCNOOC’s net production target of 2014 is in the range of 422-435MMboe, including about 69MMboe as a result of the acquisition of Nexen Inc.

CNOOC’s net production for 2013 is estimated to be around 412MMboe.

During 2014, CNOOC expects 7 to 10 new projects to come onstream. Oilfi elds Kenli 3-2 and Qinhuangdao, both located in Bohai Bay, are expected to reach a peak daily production of 37Mboe and 36Mbbl, respectively. The

Enping 24-2 project, located in Pearl River Mouth basin, is expected to reach peak production 40Mbo/d.

First oil from the Golden Eagle devel-opment in the UK North Sea is planned for late 2014 and is expected to reach a peak daily production of up to 70Mboe.

Japan• JAPAN LNG IMPORTS CONTINUE TO RISE For the second year in a row, Japan’s LNG imports hit record levels following the decision by the country’s decision to shut down its nuclear stations in the wake of 2011’s Fukushima disaster. The country is the world’s top gas importer.

Up 0.2% over 2012, Japan’s Minis-try of Finance said that LNG imports increased to 87.49MM tonnesduring 2013. Crude oil imports de-creased to a two-year low: 3.65MMbo/d, while thermal coal imported primar-ily for power generation rose 1.3% to a record 109.03MM tonnes.

South Korea• KEEL LAID FOR PETRONAS’ FLOATING LNGThe fi rst block of the keel was laid for Petronas’ fi rst fl oating LNG facility at the Daewoo Shipbuilding & Marine Engineering shipyard in Okpo, South Korea.

The PFLNG-1 will be moored in Ma-laysia’s Kanowit gas fi eld, off Sarawak, and is expected to produce 1.2mtpa.

Construction of the facility began in June 2013, and is projected to be com-pleted in Q4 2015.

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Page 5: Asian Oil and Gas-January-February 2014

January · February 2014 | AOG 5aogdigital.com

Indonesia• HESS COMPLETES PANGKAH SALE

Hess Corp. completed the sale of its Pangkah asset to a subsidiary of PT Saka Energi Indonesia for US$650 million comprised of the sale of equity interests in holding entities and inter-company debts. Pangkah, located off the coast of Indonesia, produced an average of 9,000boe/d net to Hess in the fi rst three quarters of 2013.

Hess announced in December 2013 that the company entered into two separate agreements with a joint ven-ture between PT Pertamina and PTT Exploration and Production Company Ltd. (PTTEP) to sell its interests in the Pangkah and Natuna A fi elds offshore Indonesia for $1.3 billion.

Myanmar• MITSUBISHI INVESTS IN YETAGUNJapan’s Mitsubishi entered into a share purchase agreement with JX Nippon Oil & Gas Exploration to acquire a 10% share of Nippon Oil Exploration (Myan-mar). NOEM holds a 19.3% participating interest in Blocks M-12/13/14 in the An-daman Sea, which includes the Yetagun gas fi eld.

This is Mitsubishi’s fi rst participation in an upstream oil and gas project in Myanmar.

This project is operated by a sub-sidiary of Petronas, the national oil company of Malaysia. NOEM’s net sales volume is around 8Mboe/d of natural gas and 800bbl/d of condensate.

Vietnam• KRISENERGY COMPLETES DRILL TESTKrisEnergy Ltd. completed drilling and testing the Cua Lo-1 exploration well in Block 105-110/04, which covers 7192sq km offshore northern Vietnam, with water depths of 20 to 80m. The well confi rms both the trapping mechanism and the existence of a petroleum system in Block 105.

The Cua Lo-1 well was drilled to a measured depth of 2867m. A drill stem test was conducted on a reservoir evalu-ated with the largest potential within the prospect.

Although gas fl owed during the test, the poor reservoir deliverability rate, combined with high carbon dioxide content, suggests that development of the tested reservoir is unlikely. The well will be plugged and abandoned.

Thailand• PTTEP DIVULGES INVESTMENT PLANSThailand’s PTTEP released its fi ve-year investment plan, which emphasizes a focus on production, development, and exploration activities. The plan does not include any new investment opportuni-ties.

PTTEP looks to spend US$27.28 bil-lion in 2014-2018 on projects off Africa, Australia and Myanmar.

From 2012-2013, PTTEP saw a 6% year-over-year increase in produc-tion. PTTEP projects sales to rise by another 15.4%, to 337,000boe/d from 292,000boe/d in 2013.

PTTEP plans to spend a total $5.51 billion this year, $5.54 billion in 2015, $5.47 billion in 2016, $5.63 billion in 2017, and $5.13 billion in 2018.

Malaysia• MUBADALA SWAPS EQUITY WITH SHELLMubadala Petroleum signed an agree-ment with Shell to swap equity in two exploration blocks offshore Malaysia.

Under this agreement, Mubadala Pe-troleum will gain a 20% interest in the deepwater Block 2B, while Shell will gain a 20% interest in Block SK320.

Deepwater Block 2B is operated by Shell; Mubadala Petroleum operates Block SK320. Malaysia’s Petronas Cari-gali is a participant in both blocks.

In addition, the current exploration drilling campaign in Block SK320 has yielded two new gas discoveries, Pegaga and Sintok, to add to the existing M5 discovery. The Sintok-1 well was drilled 2775m into the main target reservoir and penetrated a 290m gas-bearing carbon-ate reservoir.

• GDF SUEZ ENTERS MALAYSIAFrance’s GDF Suez (20%) and operator JX Nippon Oil & Gas Exploration (40%) have jointly entered offshore deepwater

exploration Block 2F in Malaysia with Petronas (40%). This is the fi rst GDF Suez exploration and production license in Malaysia.

Block 2F is located about 300-400km off Sarawak. The license covers an area of approximately 5500sq km with water depths ranging from 100m to 1200m. The deepwater exploration campaign will last four years.

Kazakhstan• TETHYS HITS IN KAZAKHSTANTethys Petroleum announced that an updated oil resource report on the Klymene prospect in Kazakhstan shows total unrisked mean recoverable oil resources to be more than 400MMbo.

The prospect will be tested with a new exploration well to be spudded mid-year 2014.

Klymene is in the Kul-Bas explora-tion and production contract area. The prospect was identifi ed from seismic data and indicates a four-way clo-sure with bright spots at two of three prospective stratigraphic levels within the Cretaceous and Jurassic sequence, both of which are productive in the company’s Doris oilfi eld about 60km to the east.

Russia• CENTRAX TO INSTALL TURBINES IN SIBERIA

Commissioning began at the largest installation of gas turbine packages produced by British-based specialist Centrax on a single site, anywhere in the world. Twelve of the packages, each containing a single 5.2MW Rolls-Royce 501-KB7 gas turbine, are being readied for service at the Ust Teguss fi eld, in the heart of the Siberian oil and gas industry—the Tyu-men region of the West Siberian plain, 1600km east of Moscow.

The Centrax units’ total generating ca-pacity of 62.4MW will meet the facility’s growing energy demands.

Enping 24-2 project, located in Pearl River Mouth basin, is expected to reach peak production 40Mbo/d.

First oil from the Golden Eagle devel-opment in the UK North Sea is planned for late 2014 and is expected to reach a peak daily production of up to 70Mboe.

Japan• JAPAN LNG IMPORTS CONTINUE TO RISE For the second year in a row, Japan’s LNG imports hit record levels following the decision by the country’s decision to shut down its nuclear stations in the wake of 2011’s Fukushima disaster. The country is the world’s top gas importer.

Up 0.2% over 2012, Japan’s Minis-try of Finance said that LNG imports increased to 87.49MM tonnesduring 2013. Crude oil imports de-creased to a two-year low: 3.65MMbo/d, while thermal coal imported primar-ily for power generation rose 1.3% to a record 109.03MM tonnes.

South Korea• KEEL LAID FOR PETRONAS’ FLOATING LNGThe fi rst block of the keel was laid for Petronas’ fi rst fl oating LNG facility at the Daewoo Shipbuilding & Marine Engineering shipyard in Okpo, South Korea.

The PFLNG-1 will be moored in Ma-laysia’s Kanowit gas fi eld, off Sarawak, and is expected to produce 1.2mtpa.

Construction of the facility began in June 2013, and is projected to be com-pleted in Q4 2015.

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Page 6: Asian Oil and Gas-January-February 2014

Shipyards

dynamic commissioning, start-up and performance testing, while also manag-ing all punch list items, management of change, inhibits, isolations and tie-in points.

By default, Zenator is coded with a work flow that matches the structure shown in the diagram that Falcon Group calls a Completions Pyramid. This matches the structure the American Petroleum Institute includes in Fig. 1 of its Recommended Practice, 1 FSC (Facilities System Completion, Planning & Execution), published in July 2013.

A wide spread of stakeholders on a typical project deploying Zenator enjoy the clarity, transparency and focus it brings. While Zenator is traditionally “owned” by the commissioning man-ager, other key stakeholders will be Engineering, Construction, QA, Project Controls and of course, Operations. When used to audit the completion of a project at major milestones, to verify the status on the facility and in the database and check these are the same, Zenator serves as an invaluable confidence-builder. Savvy customers know this and use Zenator to their best advantage,

helping establish trust with regulatory and certifying authorities.

This year and next will see Zenator being deployed on over US$150 billion of capital projects around the globe, 25 in total, making it the world’s leading completions management software. The full project list includes 14 projects for Chevron Corp., 6 for oilfield services com-pany Petrofac, and the rest spread among Falcon Group’s customers in Europe, Africa, the US and South America.

The vast majority of projects deploy-ing Zenator since 2011 and through 2015 are in the Asia-Pacific region, concentrated in the three South Korean yards of Daewoo Shipbuilding & Marine Engineering, Hyundai Heavy Industries, and Samsung Heavy Industries. The list includes Gorgon and six other projects, at various stages of construction, all using Zenator to track, control, man-age and report, from granular detail to overall progress.

Falcon Group’s president and CEO, Alan Mills, believes this is because “… Zenator focuses on the needs of commissioning and the ultimate end-user, operations. We designed and built Zenator to exactly meet the needs of these key stakeholders. Having around 35 years’ experience and worked the first 20 or so in engineering, construc-tion, commissioning and operations,

By GlobalFalconIn summer 2010, following the

Deepwater Horizon tragedy and with Macondo spewing out of control in the Gulf of Mexico, a major operator started a global roll-out of a software product called Zenator. Since then, the software has been successfully deployed on half a dozen of the company’s projects, including the mighty Gorgon project for Western Australia and about the same number for Falcon Group’s other customers around the world.

Zenator is an innovative, robust verification tool, focused on achieving safe and timely completions during a project’s cycle and ultimately, handover to the operations staff. The software is usually implemented during the FEED stage, when it is high on the influence curve and soon becomes the central repository for engineering tag data, enabling users to verify each activity that will ultimately impact safe, timely, handover to operations; from track-ing and reporting factory acceptance tests through phased completion of the checksheets that mark: mechani-cal completion, pre-commissioning,

New software spreads in South Korean shipyards

Fig. 1: Completions pyramid

AOG | January · February 20146 aogdigital.com

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Page 7: Asian Oil and Gas-January-February 2014

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Page 8: Asian Oil and Gas-January-February 2014

I knew those key stakeholders were being chronically under-served. Zenator rectifi es that situation and restores bal-ance. From the outset, we made Zenator confi gurable so that clients can easily wrap it around their way of working. Our customers are mainly operators and contractors in oil and gas, but we also have customers involved in shipbuild-ing, nuclear new build, nuclear decom-

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SPE has something for everyone working in the upstream oil and gas industry, no matter where on the globe you may be.

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missioning and civil infrastructure projects.”

From the company’s Houston offi ces, Mills went on to say, “if you focus on the way a project is commissioned and completed, with safe and timely hando-ver to Operations, you improve business performance and the bottom line. In fact, it was assumed this would happen when owners calculated the net present

value, several years earlier when the project was sanctioned. Using Zenator is all about a way of working, whether the project is enormous, like Gorgon, or very small, such as modifi cations to brown-fi eld facilities. So the argument I some-times hear that a project is too small to use Zenator is not valid. It’s true, on giga projects like Gorgon, Zenator is popu-lated with over a million records and users rely on it entirely to do their work. But we know from the experiences of our corporate customers, that used on much smaller projects, it brings consis-tency to the way company completes its projects and provides essential develop-ment of the company’s talent. I am very proud that our software is being used to develop and train the next generation of commissioning managers.”

Falcon Group are not complacent about the success Zenator is receiving, Mills added, “Our work never stops. There is an exciting development program that will bring further innovation to our customers. We don’t dictate how a customer should work, instead we set out to provide new ways of working. There is some streamlin-ing and some radical innovation in the pipeline for our customers.” AOG

Fig. 2: Software implementation over project life

AOG | January · February 20148 aogdigital.com

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Page 9: Asian Oil and Gas-January-February 2014

Petroleum Geophysical Services ASA (PGS) has launched its second Ramform Titan class vessel, the Ramform Atlas, at a naming ceremony at the Mitsubishi Heavy Industries (MHI) yard in Nagasaki, Japan on 24 Jan 2014.

The vessel will typically tow a network of several hundred thousand recording sensors over an area greater than 12sq km, equivalent to 3.5 x Central Park, New York.

Ramform Atlas (pictured) is the second of four such vessels to be built in Japan. Her sister ship, the Ramform Titan, has been operating successfully since its delivery in April 2013.

The design combines maritime tech-nology and the imaging capabilities of the GeoStreamer seismic acquisition technology.

The vessel’s 70m-broad stern accom-modates 24 streamer reels: 16 reels aligned abreast and 8 reels further forward.

It can carry more than 6000 tons of fuel and equipment, and will have quarters for up to 80 crew members,

with 60 single cabins, and 10 twin cabins for visitors, all with separate bathrooms. AOG

Ramform Atlas named in Japan

Right: The Ramform Atlas.

Below: The naming ceremony for theRamform Atlas at the MHI shipyard.

January · February 2014 | AOG 9aogdigital.com

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Page 10: Asian Oil and Gas-January-February 2014

Geology & GeophysicsTGS plans Barrow seismic survey• TGS will conduct a 3D seismic survey off northwest Australia. The Huzzas is a 2100sq km 3D survey that will cover the Barrow sub-basin.

The data will be acquired with Volstad Maritime’s M/V Geo Caspian using CGG’s BroadSeis and BroadSource technologies. Preliminary data will be available Q3 2014.

Upon completion of this survey, the total TGS portfolio of 3D multi-client coverage offshore Australia will exceed 32,500sq km.

Gazprom readies Chayandinskoye, Kovyktinskoye seismic• In December 2013, Gazprom announced its plans for seismic surveys in the Chayandinskoye and Kovyktinskoye fields, located in the Yakutia and the Irkutsk regions. Gazprom says it will conduct a 1200sq km 3D seismic sur-vey in Chayandinskoye, in addition to acquiring 100sq km of 3D seismic over Kovyktinskoye field.

OMV completes Kaka 3D in Taranaki basin• OMV New Zealand Ltd., operator of offshore Taranaki Basin permit PEP 51906, completed the Kaka 3D seis-mic survey, 7-18 January 2014. The polygonal 156sq mi. (403.8sq km) survey is within and adjacent to PEP 51906, and the vessel acquired an additional 26sq mi. of 3D lines to tie into the existing Matuku 3D survey (shot in 2011).

PEP 51906 ownership: OMV (65%), Octanex N.L. (22.5%), and New Zealand Oil & Gas (12.5%).

CNOOC completes PNG survey• BGP PNG Exploration’s 2D seismic acquisition vessel, Dong Fang Kan Tan No. 1, completed a 2D seismic acquisition project covering the offshore petroleum prospecting licenses PPL374 and PPL375 on 3 Jan 2014. The vessel recorded a total of 3015line-km of 2D seismic data over the PPLs in Papua New Guinea.

UMC Energy holds a 30% interest in permit operator Gini Energy Ltd., which holds 100% interest in the per-mits; CNOOC Ltd. holds the remaining 70% interest in Gini Energy. CNOOC operates these permits, is funding the entire cost of the survey, and will be responsible for processing the 2D data.

Quest investigates gravity, structural high in Ranau PSC, Sumatra• Australia’s Quest Petroleum NL reported the results of reprocessing seismic over a gravity high in the Ranau PSC, off south Sumatra, Indonesia.

Quest engaged PT Tesla Indonesia to re-process 38.5mi. (62 km) of 1993-vintage 2D seismic, beginning in October 2013. PT Tesla used Promax R5000 software for time-domain processing, and Para-digm GeoDepth software using common reflection angle migration (CRAM).

The results indicate the presence of a structural high that coincides with the gravity high, covering more than 4.6sq mi. (12sq km), with 250ft of structural closure. Seal integrity, source and matu-rity definition require further investiga-tion and review.

Image of the Chayandinskoye field courtesy Gazprom.

AOG | January · February 201410 aogdigital.com

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Page 11: Asian Oil and Gas-January-February 2014

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Page 12: Asian Oil and Gas-January-February 2014

AOG | January · February 201412 aogdigital.com

three key areas. First, in terms of the time required to stimu-late individual stages, sliding sleeves allow for up to 15 stage completions per day. Conventional plug completions, by con-trast, typically only allow for fi ve stages per day.

Sleeve completions may also lower spending on resources such as water. By avoiding the need to pump plugs into place, an operator may reduce their water usage by as much as 30%.

Operators also enjoy safety benefi ts with sliding -leeve completions, which do not require the use of perforating guns and explosive charges to create access to the formation. A typical plug-and-perf job may require perforating 17 distinct stages with three perforation clusters per stage, for a total of 51 explosions per completion.

Inroads in ChinaAn operator in China looking to improve productivity in long, horizontal oil wells decided to test the potential of sliding sleeve completions. Previous completion systems in older wells in its operating fi eld, located in KuChe county, Xinjiang Province, were prone to failure due to the challenges of build-

Improving production at a lower cost

Sliding sleeve completion systems

The close collaborative development process between Weatherford and the operator delivered a sliding sleeve completion system that would achieve production expectations in a tight timeframe and without fear of formation damage or loss of wellbore integrity.

By Sandy Liu, Winston Zeng and Don McRobb, Weatherford

During fracture-stimulation operations, achieving effi cient and secure zonal isolation is essential to ensuring that frac-turing fl uid reaches the desired target zone, while protecting the areas in the reservoir around it. Often, the choice of zonal isolation methods comes down to either a plug-and-perfora-tion (plug-and-perf) completion using composite plugs, or a sleeve completion.

While both methods have their advantages depending on a given well’s geometry, economics and production target, major differences exist. In terms of pure completion effi ciency, sleeve completions are increasingly outpacing plug-and-perf completions in both conventional and unconventional wells.

Effi ciency gains with sleeve completions are evident in

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Page 13: Asian Oil and Gas-January-February 2014

January · February 2014 | AOG 13aogdigital.com

ing out long laterals. These wells, which target an Ordovician carbonate reser-

voir, are difficult to drill to target depth (TD), thanks to sig-nificant friction and torque buildup experienced in the lateral sections. They also consume large quantities of drilling mud and generate significant costs for drilling equipment and ser-vices due to the generally low rate of penetration (ROP) to TD.

The operator also faced tight time deadlines between drill-ing the hole and completing the well, as the risk of wellbore collapse was high in the long, lateral openhole section. The operator selected Weatherford’s sliding sleeve completion system for trial in a gas development horizontal well.

Targeting the zoneWeatherford’s ZoneSelect system is a modular, sliding sleeve-based, openhole completion system designed to provide great-er flexibility in stimulating individual stages in a multizone completion. The system incorporates a fracturing sleeve, an isolation packer and accessory tools to selectively isolate and stimulate a formation within tightly confined parameters.

The operator supplied all relevant well data and project parameters, which Weatherford used to develop and deploy a comprehensive well plan. Ultimately, the required solution would have to save on completion costs, rig operation time and fracturing time, while successfully withstanding the high temperatures and pressures expected in the well. These conditions had previously hurt the performance of other completion systems in similar wells in the field.

The drilling fluid used in this field also posed a challenge to the setting time of the packer systems. To ensure that the wa-ter-swellable elastomers in the packer would swell and set in a reasonable time period to keep the completion operation on schedule, Weatherford conducted extensive testing and tweak-ing of the packer to develop the optimal elastomer composition.

This upfront planning and qualification testing required close collaboration with both the client and Weatherford’s own operational support base in Tanggu, TianJin, located more than 4,000km away. An integrated completions ser-vice approach was undertaken to ensure that all completion equipment was thoroughly vetted and prepared, mobilized and deployed downhole as seamlessly and safely as possible. This process also required having back-up equipment and an emergency back-up plan in place in the event that something went wrong during deployment.

The operator was closely involved in the planning and qualification process, and carefully reviewed the recommend-ed completion strategy before giving its approval. The system would be made up of SingleShot fracture sliding sleeves, which allow multiple zones to be fractured in a single trip by opening a port, fracturing and then moving to the next zone—without a thru-tubing intervention.

A 4 1/2-in. x 5 3/4-in. hydraulic openhole packer—a two-stage mechanical sealing tool designed for multizonal isolation—would be used to provide both mechanical and

three key areas. First, in terms of the time required to stimu-late individual stages, sliding sleeves allow for up to 15 stage completions per day. Conventional plug completions, by con-trast, typically only allow for five stages per day.

Sleeve completions may also lower spending on resources such as water. By avoiding the need to pump plugs into place, an operator may reduce their water usage by as much as 30%.

Operators also enjoy safety benefits with sliding -leeve completions, which do not require the use of perforating guns and explosive charges to create access to the formation. A typical plug-and-perf job may require perforating 17 distinct stages with three perforation clusters per stage, for a total of 51 explosions per completion.

Inroads in ChinaAn operator in China looking to improve productivity in long, horizontal oil wells decided to test the potential of sliding sleeve completions. Previous completion systems in older wells in its operating field, located in KuChe county, Xinjiang Province, were prone to failure due to the challenges of build-

Sliding sleeve completion systemsswelling-elastomer isolation. This packer is designed for increased sealing capability with a lower pack-off force to reduce formation stresses. Additional accessories, including a frac ball system that deploys balls of the same size to actu-ate any number of sleeves in the completion, rounded out the completion system offering.

Executing the planAll necessary tools and accessories were mobilized to the well site to execute the completion of the well. The equipment was laid out on the pipe deck and tallied to ensure that all neces-sary components were present. A pre-job meeting was held with the entire rig crew to inform members of their designated duties and roles.

This lower completion string containing the sliding sleeve and packer assemblies was then successfully installed to a depth of 22,525ft (6866m), which represented the deepest installation of the system to date.

The process of picking up the packers and blank joints and any other associated lower multizone completion equipment from the pipe deck was efficient, and the completion was de-ployed to the setting depth at a swift rate. The operator was able to set the packer and carry out system testing instantaneously.

After the fracturing was completed, the swellable elements activated according to the operator’s time requirements and increased the sealing area to 10ft (3m) in total length, without losing the 10,000psi (968.94MPa) rating. The large upper bore of the hydraulic openhole packers enabled the operator to maxi-mize flow rates, while achieving instant-set isolation in the formation.

This collaborative solution using the ZoneSelect family of completion products helped the operator meet its objectives of deploying a complete solution in a tight timeframe and deliver desired production rates. Having mechanical and swellable elements in one packer enabled the operator to achieve in only one trip what conventional technology requires two or more trips to accomplish, saving more than 40% in rig time and associated costs.

With this completion system fully in place, the operator is now evaluating the fault formation for its oil production potential. If the evaluation is promising, the formation will be fully developed for production. AOG

Sandy Liu is Weatherford’s Cased Hole Completion Sale Manager in China. Winston Zeng manages Weatherford’s Completion business which include cased hole completion, open hole completion, sand control and Frac chemistry business unit in China. Don McRobb is the Asia Pacific Regional Openhole Completions Manager in Weatherford’s Beijing Office where he manages the ZoneSelect Systems, swellables and openhole packers being used forunconventional and conventional Wells in the regions.

The close collaborative development process between Weatherford and the operator delivered a sliding sleeve completion system that would achieve production expectations in a tight timeframe and without fear of formation damage or loss of wellbore integrity.

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Page 14: Asian Oil and Gas-January-February 2014

AOG | January · February 201414 aogdigital.com

China is the world’s most populated country and the largest energy consumer in the world, which makes it

very significant on the global energy stage. According to a recent report published by The Economist

Intelligence Unit, global energy demand will grow in 2014 and this is, in part, due to China’s tremendous economic growth. Despite dropping from its year-on-year double-digit growth

in 2012, the prosperous Chinese economy still commands a colossal amount of energy resources.

The US Energy Information Administration (EIA) states that China produced an estimated 4.3MM b/d of total oil liquids in 2011, 95% of which was crude oil. At the end of 2013, China’s oil production was expected to rise by 170M b/d to nearly 4.5MM b/d, eventually hitting 4.7MM b/d by 2035.

China spends billions of dollars in pursuit of foreign energy supplies, but there has been a considerable investment in hydropower in recent years, to reduce the divide between consumption and domestic production. These investments, including the $25 billion Three Gorges Dam project, have and will continue to have a major impact on the recruitment market in the region.

The country’s major ambition is to move toward natural gas, and the government looks to double its consumption by 2015 by pushing the use of non-fossil fuels to 15% of the country’s total energy use by 2020. If achieved, China would match the US as the top natural gas consumer globally by 2035 and ease its dependence on imported oil. In time, this will lead to the construction of onshore and offshore LNG facilities, which means the demand for construction and project managers and those with project management skills will rise.

After a two-year struggle to get out of the sluggish maritime construction market, Faststream Recruitment Group has seen signs of a buoyant Chinese labor market as it picks up momen-tum in the jackup construction market. This is mainly due to

With LNG and unconventional usage on the rise, Mark Charman

of Faststream Recruitment Group, discusses China’s changing

workforce landscape.

Upward trends

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Page 15: Asian Oil and Gas-January-February 2014

January · February 2014 | AOG 15aogdigital.com

the recent deepwater discoveries for potential shale opportu-nities in Bohai Bay and the South China Sea: In August 2013, China National Offshore Oil Corp. (CNOOC) reported seven new discoveries and 18 appraisal wells offshore China, which were traditionally closed to Western service companies.

However, without this Western support, Chinese service businesses lack the capabilities and expertise to run these activities. With that, we have seen an increased demand for foreign talents, particularly westerners who relocate to China to work for its state-owned oil companies. As part of these roles, candidates receive full expatriate packages, which in-cludes housing and transportation allowances and education for children. This has been a popular trend this past decade, and we expect it will continue into 2014 and beyond.

As Chinese companies look to work with Western service companies, Western subsea contractors will have the op-portunities to expand operations through new set-ups, joint ventures or production-sharing contracts in Chinese territory. Most recently, we have sourced personnel for appraisal well drilling programs which have been carried out in Bohai Bay. These agreements have also opened up new opportunities for senior engineers who are usually required to lead a team of junior or inexperienced engineers.

While the engineering of subsea modules such as the buoy-ancy module, templates and manifolds continue to be done in Western regions, we expect construction work for these parts to increase in 2014, offering new employment opportunities

in 2012, the prosperous Chinese economy still commands a colossal amount of energy resources.

The US Energy Information Administration (EIA) states that China produced an estimated 4.3MM b/d of total oil liquids in 2011, 95% of which was crude oil. At the end of 2013, China’s oil production was expected to rise by 170M b/d to nearly 4.5MM b/d, eventually hitting 4.7MM b/d by 2035.

China spends billions of dollars in pursuit of foreign energy supplies, but there has been a considerable investment in hydropower in recent years, to reduce the divide between consumption and domestic production. These investments, including the $25 billion Three Gorges Dam project, have and will continue to have a major impact on the recruitment market in the region.

The country’s major ambition is to move toward natural gas, and the government looks to double its consumption by 2015 by pushing the use of non-fossil fuels to 15% of the country’s total energy use by 2020. If achieved, China would match the US as the top natural gas consumer globally by 2035 and ease its dependence on imported oil. In time, this will lead to the construction of onshore and offshore LNG facilities, which means the demand for construction and project managers and those with project management skills will rise.

After a two-year struggle to get out of the sluggish maritime construction market, Faststream Recruitment Group has seen signs of a buoyant Chinese labor market as it picks up momen-tum in the jackup construction market. This is mainly due to

in Chinese fabrication yards. Engineers with quality assur-ance and quality control, project management and commer-cial experience are favored in this industry and we foresee a large push in the recruitment of these positions. Expatriates will also be required for senior appointments – managerial positions and beyond, for example – while the ground fabrica-tion works will be carried out by locals.

We also anticipate an increase of companies typically fo-cusing on downstream business venturing into the upstream territory. This trend is beginning to gain popularity amongst some of the more renowned onshore refinery engineering, pro-curement, construction, hence creating a pull factor for senior executives who are already working in upstream companies to take up challenges in new start-ups. Senior project direc-tors, vice presidents for operations and commercial directors are required and a large amount of recruitment activity will be carried out to ensure experienced personnel are placed in these positions.

Current upstream activities have also spurred the new construction of onshore refineries, tank terminals and jetties. Many of these projects are currently happening in China in southwest China, where experienced project and construction managers are in demand for this sector.

Chinese yards are currently picking up orders for the construction of deepwater facilities such as FPSOs, semisub-mersibles and drillships. These operations require far more technical knowledge compared to work done for shallow water facilities, for which Singapore yards are historically popular. We have seen a shift of expertise from Singapore to China that has resulted in a 10-15% rise in salary across dif-ferent appointment levels to attract the best people, as Chinese companies are keen to excel in a new specialized area. AOG

Mark Charman is the founder and CEO of the Faststream Recruitment Group. Established in 1999, Faststream is a recruitment organiza-tion specializing in staffing maritime, oil and gas, mining and supply chain positions. The company employs more than 130 people at bases in Southampton, Singapore, Perth, Houston, and Fort Lauderdale, Florida. Educated at Southampton Solent University, Charman began his career in specialist recruitment in 1993 as a division man-ager with Matchtech Group Plc. Charman is a fellow of the Recruitment and Employment Con-federation and a member of the American Staffing Association.

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Page 17: Asian Oil and Gas-January-February 2014

World-class subsea solutionsfrom Norway

2014 Supplement to

in partnership with NCE Subsea

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Page 18: Asian Oil and Gas-January-February 2014

The Emerson logo is a trademark and service mark of Emerson Electric Co. Emerson Process Management. ©2011 Roxar.

Want to learn more?

Visit www.roxar.com

Optimize Production From Your Reservoir.No Matter What.

Coming soon...

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of multiphase metering.

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Page 19: Asian Oil and Gas-January-February 2014

Profi leNCE SUBSEA FOCUS 2014

NCE Subsea 3

NCE SUBSEA FOCUS 2014

Supplement to O� shore Engineer

Owe Hagesæther is the CEO of Norwegian Centre of Expertise Subsea (NCE Subsea)Education: Hagesæther holds an MSc in Computer and Information Sciences from the University of Bergen and a MBA in Strategic Management from Norwegian School of Economics and Business Administration.Experience: He has experience from industries such as oil & gas, banking & fi nance, IT & telecom-munications, energy, governmental, consulting and maritime technology. Hagesæther describes himself as an entrepreneur, with projects including being a founding partner of Nordic Integrator Group, and running and owning management consultancy Nordic Mind, under his belt. His last position was CEO of Sea Hawk Navigation AS (see page 25). He has also worked in senior roles for BKK Marked, Bouvet ASA, and EDB Business Consulting. His earlier career saw him working at Den Norske Bank and Statoil. Other roles: Hagesæther is a board member of Knowit Quality Management As. Interests: Hagesæther lists his interests as – new technology, investments, hunting and fi shing, reading novels, music, history, trav-eling and gourmet cooking. He says: “World-leading expertise on subsea solutions are developed in Norway. This position in the global subsea market is important to both manage and further develop. The Norwegian Centre of Expertise (NCE) is a driver and facilitator for innova-tion and internationalization, and we have an important role in promoting the Norwegian subsea industry’s competence and capacity.” •

Subsea solutions from NorwayBy Tove Ormevik, o� shore installa-tion manager, Skarv FPSO, BP, and chairman of the board NCE Subsea.

Norway is the world’s leading nation on subsea technology, products,

and services. In the Norwegian Centre of Expertise Subsea (NCE Subsea) we are committed to being world-class at what we do—to facilitate and implement activities to strengthen the Norwegian subsea industry.

This was confi rmed when we were awarded the Gold Label of Cluster Management Excellence in 2013. With a 100% score on all evaluation parameters, we got evidence that we are among the best in the world at what we do. Being awarded Gold Label is a major achievement, and an inter-national acknowledgement of the work performed since 2006.

I have followed the develop-ment of NCE Subsea since it was established, and the Gold Label assessment report confi rms that we have been able to focus on strategically important issues, and work closely with stakeholders in the subsea cluster.

We are now working to position NCE Subsea for the next level of cluster

programs. NCE Subsea is one of the Norwegian cluster facilitators best quali-fi ed for status as Global Centre of Expertise (GCE), which is a program for the most mature Norwegian clusters positioned as global knowledge and industry hubs.

We want to build a facilitator for the entire Norwegian subsea industry, based on regional hubs, which will be working on issues specifi c to their geographical and disciplinary areas. The GCE status signi-fi es a considerable boost for the subsea cluster, with additional resources, and a longer-term perspective for the develop-

ment of the Norwegian subsea industry.

We aim for a greater national and international role, and, in align-ment with this, we continue to promote collabora-tion between the world’s leading subsea environ-ments. Most recent

is the signing of an agreement that makes NCE Subsea a model for subsea cluster development in Rio de Janeiro, Brazil. •

Tove Ormevik

Contents 3 Profi le: NCE Subsea CEO Owe Hagesæther

Subsea solutions from Norway: an introduction from NCE Subsea chairman Tove Ormevik

4 Setting the scene: Analyst Rystad outlines global subsea market drivers

6 Margins to be made: Subsea processing is poised to grow, but also has its challenges. Elaine Maslin reports.

10 Focus on e� ciency: Norwegian operator Statoil is taking action on e� ciency. Torgeir Hågøy reports.

12 Deeper, lighter, composites: Vello Nordic AS’ managing director on deepwater technology.

13 Brazil beckons: South America o� ers fertile territory for AS Connector.

16 Leak detection, a real-time requirement: Elaine Maslin explores e� orts to develop integrated environmental monitoring solutions.

19 World Class Cluster: Heidi Skalevik explores NCE Subsea’s successes and future goals.

20 Powering the future: the subsea power systems of the future.

21 A fuel cell future: CMR proposes subsea power cells

22 AHC in Asia: Scantrol’s active heave compensation solutions thrive in Asia

23 Fabricating the subsea factory: Norway’s NLI Subsea has global ambitions

25 On the radar: Sea-Hawk navigation helps identify “growlers”

26 Subsea metering challenges met by Roxar and Huisman opens Bergen o� ce.

World-class Subsea Solutions from Norway, is a supplement to O� shore Engineer, published by AtComedia.

Supplement editor, Elaine Maslin, [email protected] sales, Brenda Homewood, [email protected] and production, Bonnie James Reprints, Jill Kaletha, [email protected], +1-219-878-6068

AtComedia, 1635 West Alabama, Houston, Texas, 7706-4101, USA.Tel: +1-713-529-1616Email: [email protected] Subsea: www.ncesubsea.no

NCE.indd 3 1/20/14 8:26 PM

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Page 20: Asian Oil and Gas-January-February 2014

NCE SUBSEA FOCUS 2014

20144 NCE Subsea

NCE SUBSEA FOCUS 2014

4 NCE Subsea

The global subsea market has under-gone a tremendous development

over the last decade. From about US$7 billion in 2000, the

market is forecasted to reach more than $40 billion in 2013.

Norway has been one of the pioneering countries in developing the technology and know-how behind the yellow steel that brings the black gold to the surface. So, how will this market develop, and which countries will be the main markets in the years to come?

At the beginning of the millennium, global subsea expenditure totaled $7 bil-lion. By 2008, the global market grew to a high of more than $31 billion.

After the fi nancial crisis, the market contracted, as operators cut back on investments and put projects on hold to

conserve cash. However, since 2011, the market has returned to its growth trajec-tory and 2013 is estimated to have ended at slightly more than $41 billion.

Since 2011, the oil price has trended downwards, while the operators’ capital expenditure has continued to grow. This has put pressure on companies’ free cash fl ow, resulting in a reduction in investment growth. However, relying on the latest demand scenarios by Ithe International Energy Agency (IEA), Rystad Energy analysis indicates that the supply-demand balance for liquids will get tighter as we move towards the end of the decade.

O� shore fi elds will be the most impor-tant source of new liquids production, to deliver on the projected demand growth.

From 2013-2018, operators’ subsea expenditure is forecasted to grow from

$41- 80 billion, equating to a compound annual growth rate of 14%. This is sizable growth. To get there, operators need to continue to sanction projects. But, to put it in perspective, this is far less than the 25% annual growth we saw during the fi ve-year investment cycle culminating in the market high of 2008.

In 2000, the market was dominated by the US, Norway, the UK, and Brazil. These four made up about 80% of the total market. Those markets are still the most important subsea markets globally. But, in 2013, their share of the market fell to 60%, due to the emergence of o� shore regions like West Africa, and Australia. By 2018, the big four’s dominance is forecast to decline further, to about 50% of the total market.

In the next fi ve years, Brazil is forecast to be the largest subsea market globally. Large scale development of the country’s pre-salt discoveries by extensive use of fl oating production, storage, and o� oad-ing vessels, bring signifi cant opportunities for the subsea industry. It is estimated that subsea expenditure in Brazil will be close to $55 billion, over the next fi ve-year period. Predictred to occupy second and third place are the US and Norway, with estimated subsea expenditure of $38 and $37 billion, respectively.

The subsea market has favorable pros-pects in the years to come. The fi rst two steps towards the subsea factory, booster pumps and separation, are already proven. With the fi rst full-scale deploy-ment of subsea gas compression around the corner, the industry is continuing to expand the market space for subsea-related equipment, and enabling future developments that may not be commer-cial or technically feasible today. Following this development into the 2020s will be an exciting journey. •

Jon Fredrik Müller is project manager within the consult-ing department at Rystad Energy. His main area of expertise is in oil fi eld services, particularly

o� shore-related. He holds an MSc in Industrial Economics from Norwegian University of Science and Technology, with specialization in mechanical engineering and fi nance.

Setting the sceneNorwegian technology is a strong contributor to the current global

subsea boom. Jon Fredrik Müller puts the market into context.

Ghana

Malaysia

Indonesia

Nigeria

Australia

Angola

United Kingdom

Norway

United States

Brazil

Source: Rystad Energy DCube 0 10 20 30 40 50 60

Subsea Services

Subsea Equipment

SURF

Subsea Services

Source: Rystad Energy DCube

0

10

20

30

40

50

60

70

80

90

2000 2003 2006 2009 2012 2015 2018

Global E&P subsea expenditure US$ billion by market segment

Global E&P subsea expenditure 2014-2018US$ billion by top 10 countries and market segment

NCE.indd 4 1/20/14 8:25 PM

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Page 21: Asian Oil and Gas-January-February 2014

operating hours. And counting.

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ONESUB-100_Processing_OFFEng.indd 1 9/17/13 5:39 PMNCE.indd 5 1/20/14 7:37 PM

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Page 22: Asian Oil and Gas-January-February 2014

NCE SUBSEA FOCUS 2014

20146 NCE Subsea

Norway has a leading role in the devel-opment of subsea processing capa-

bilities, in its own waters, and globally. Statoil’s Åsgard subsea compression

project, in the Norwegian Sea, will be the fi rst of its type, when it comes onstream next year.

As well as proving new technology, the project will help further grow the global subsea processing market, says Norwegian energy analysts Rystad Energy.

Rystad estimates that today’s US$500 million a year subsea processing market could be worth $8 billion by 2020, with subsea gas compression taking a growing role.

While the glitz and glamour of cutting

edge engineering has focused attention on the ground-breaking Åsgard project, and Statoil’s second subsea gas compression project, Gullfaks, some suggest the real money will be in a larger num-ber of much smaller projects, if the industry takes a more industrialized approach.

The overall market consists of four main areas: subsea boosting, gas compression, separation, and water injection.

To date, the market has been dominated by subsea boosting, for oil fi elds, due to high oil prices. Gas compression is starting to gather momentum, but is still at an early phase of maturation, says Audun Martinsen,

analyst, Rystad.Geographically, the lion’s share of the

market has been in Brazil, with about a third of the market,

followed by Norway and West Africa, each with

about 20%. “We perceive sub-

sea processing as an emerging market,” he says. “Currently it has been small awards at an annual rate of about 3-4. It is not that big, so far, but it has huge potential.”

The North Sea

Margins to be made in subsea processingThe global subsea processing market is estimated to reach US$8 billion by 2020,

with Norwegian fi rms leading the way. Elaine Maslin reports.

Audun Martinsen, analyst, Rystad Energy. Photo courtesy of Julia Weiss, Rystad Energy.

Statoil’s Åsgard project. Illustration courtesy

of Aker Solutions.

NCE.indd 6 1/20/14 7:38 PM

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Page 23: Asian Oil and Gas-January-February 2014

NCE SUBSEA FOCUS 2014

Supplement to O� shore Engineer NCE Subsea 7

analyst, Rystad.Geographically, the lion’s share of the

market has been in Brazil, with about a third of the market,

followed by Norway and West Africa, each with

about 20%. “We perceive sub-

sea processing as an emerging market,” he says. “Currently it has been small awards at an annual rate of about 3-4. It is not that big, so far, but it has huge potential.”

The North Sea

will see near-term growth potential, driven by Statoil, as will Brazil, driven by Petrobras, with Southeast Asia and Australia o� ering longer term prospects.

Subsea processing can be applied in green-fi eld and brownfi eld developments, says Marco Gabelloni, senior engineer, Aker Solutions.

In brownfi eld developments, such as the Åsgard project, subsea compression can help increase recovery and extend fi eld life. Subsea processing has potential on existing fi elds, where the water cut has increased towards the end of fi eld life, but topside facilities are unable to handle the extra water content. It can also enable new tie-ins with the produced water processed subsea. Subsea processing o� ers a solution which requires little topside modifi cation.

Using subsea compression early on in green-fi eld developments, can accelerate production—bringing more production in a shorter period

of time, reducing operational costs. It could also o� er a solution in harsh environments, or remote areas, where installing topsides could be di� cult.

O� shore Norway will experience this fi rst-hand next year when the Åsgard project comes onstream. Åsgard will comprise two 11.5MW

gas compressors, with power from the Åsgard A platform, in a 74

x 45 x 26m frame.Subsea compres-

sion as a concept dates back to the 1980s, says Gabelloni. Between then

and now has been 30 years’ work, covering the fi rst prototypes, the pilot on Ormen Lange, and now Åsgard.

Development work involved component and system qualifi cation—the

Marco Gabelloni, senior engineer, Aker Solutions.

Åsgard’s compression station frame being lowered into place last year (2013). Illustration courtesy of Aker Solutions.

NCE.indd 7 1/22/14 10:49 AM

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Page 24: Asian Oil and Gas-January-February 2014

NCE SUBSEA FOCUS 2014

20148 NCE Subsea

Ormen Lange compression alone has involved several qualifi cations lasting a few years.

Future projects will likely require further qualifi cation, to meet project specifi c needs, and or operator-specifi c specifi ca-tions. Åsgard, for example, is in 270m water depth, while Ormen Lange project is in 900m, o� ering di� erent challenges.

“We are now seeing more and more interest from the industry for this (subsea compression),” says Gabelloni. “One of the reasons is that, by placing gas compres-sion subsea, you can put it closer to the wellhead and achieve higher recovery rates, because you have a lower wellhead pressure. Statoil’s estimate for Åsgard is that they will achieve 280MM boe addi-tional production.”

Gullfaks, another subsea compression project in Statoil’s project pipeline, will be di� erent again, with wet gas compres-sion. It is being developed in Bergen by Norway’s Framo Engineering, now part of OneSubsea.

This will see two 5MW wet gas

compressors, in 135m water depth, with power supply from the Gullfaks C plat-form via two 2.5MW electric motors. The compression station will weigh 960-tonne and measure 34 x 20 x 12m, according to Statoil. Start-up is estimated for Autumn 2015.

The next big challenge, in sub-sea gas compression, will be to incorporate gas reinjection, says Gabelloni. “So far we do not see a lot of requirement for it,” he says. “But the company is already considering it.”

Subsea separation is a more mature technology than subsea gas compression, but there are still only a handful of projects in existence. Troll, o� shore Norway, was the fi rst, launched in 2001. Others include systems on Shell’s Perdido in the Gulf of Mexico, and Total’s Pazfl or, o� shore Angola.

Removing produced water using separation facilities on the seabed allows operators to debottleneck topside facili-ties, increasing production. In addition it

helps to reduce the pressure drop in the pipeline from seafl oor to topsides, reduc-ing the wellhead pressure, and enabling higher production, says Gabelloni. The process can also be combined with sub-sea water injection, removing the need to

route water topsides before reinjection.

Aker Solutions is designing subsea

separation systems based on both gravity and cyclonic technology. They are still in develop-ment work, but the company plans to have them com-mercially available soon.

One of the chal-lenges is reaching a certain level of water quality

with a compact system, says Gabelloni. “Generally, the bigger the separator, the

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Subsea – facing new realities Market and technology complexity – inspiring industry collaboration

Since 1980 Bergen has served as the host city for the Underwater Technology Conference, the world’s oldest subsea conference. During a few days in June, the world’s leading subsea technologists visit Norway, and exchange ideas and knowledge for the future.

UTC has a well-known history of presenting highly competent speakers discussing current and important topics for the subsea industry. This has resulted in UTC being one of the most important international meeting grounds for subsea executives, managers, engineers and strategic and planning personnel. UTC 2014 will be the 20th Underwater Technology Conference.

Bjorn Søgård, business develop-ment leader, wells subsea and risers, DNV.

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Page 25: Asian Oil and Gas-January-February 2014

NCE SUBSEA FOCUS 2014

Supplement to O� shore Engineer NCE Subsea 9

helps to reduce the pressure drop in the pipeline from seafl oor to topsides, reduc-ing the wellhead pressure, and enabling higher production, says Gabelloni. The process can also be combined with sub-sea water injection, removing the need to

route water topsides before reinjection.

Aker Solutions is designing subsea

separation systems based on both gravity and cyclonic technology. They are still in develop-ment work, but the company plans to have them com-mercially available soon.

One of the chal-lenges is reaching a certain level of water quality

with a compact system, says Gabelloni. “Generally, the bigger the separator, the

lower the oil in water content that can be obtained. A smaller gravity separator can be combined with produced water treatment components using e.g. cyclonic technology in order to achieve required water quality.”

Another challenge, in the future, will be CO2 separation, currently not available subsea.

However, the most immediate challenge facing the industry is the ability to provide, on time, subsea equipment. DNV is run-ning a joint industry on subsea forgings, in order to try and agree standard practice and parts to improve lead times.

Bjørn Søgård, business development leader, wells subsea and risers, DNV, suggests that, while focus is on the mega projects, the potential could be unleashed in making smaller units, and through industrializing, making them more a� ordable without sacrifi cing qual-ity or reliability.

“Åsgard and Gullfaks are ground-breaking in what they are doing, and they are very big projects. They are pushing all

the limits, with complex systems that are bigger than ever, and more professions involved than ever before,” he says.

“The industry and media is putting a lot of attention on those mega projects. But I believe the really big potential for subsea is to industrialize the more ordinary systems. How many Åsgards and Gullfaks projects will there be in the future?

“The future potential lies in making smaller, more robust units that are more cost e� cient to justify investment to. But those smaller units will naturally have lower performance, meaning they will run with a lower e� ciency.

“Standardization would be a part of making these smaller, robust, profi table systems,” he says. “We take a broader view of standardization in the industry and believe more could be done, including around engineering processes, right down to user manuals, which would not hinder innovation or prevent competition,” says Søgård.

For Statoil, Asgard and Gullfaks are

vital to developing the next generation of subsea facilities. “By these projects, tech-nologies will be proven which will be an important part of future subsea factories,” it says.

Rystad has already predicted there is huge potential for the existing market. Martinsen says there are about 100 projects that could be feasible for subsea processing solutions o� shore Brazil, and about 80 o� West Africa.

But, he says, the supplier market is limited, with three companies, Aker Solutions, FMC Technologies, Cameron, and Framo (part of Schlumberger), with the latter two now part of OneSubsea, dominating.

Depending on operators’ willingness to invest, and take on the risk of new technologies, each supplier could benefi t signifi cantly from taking a leading posi-tion, pointing to strong competition, but also limited capacity, in the market.

“If they are able to win this market that will add 20% on top of their revenues in 2020,” says Martinsen. •

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Page 26: Asian Oil and Gas-January-February 2014

NCE SUBSEA FOCUS 2014

201410 NCE Subsea

By Torgeir Hågøy

Subsea will be among Statoil’s most important areas of focus over the

coming years. The company has been involved in the development of subsea technology since the late 1970s, and its fi rst subsea well was brought into production at Gullfaks in 1986.

At present, the company has more than 520 subsea wells in operation, representing over 50% of its oil and gas produc-tion. This has positioned Statoil as the world’s second largest operating company within subsea production of oil and gas.

In the years to come, its share of production from subsea installations will rise steadily. However, for the company to realize its “longer, deeper, colder” objec-tive and vision, a few challenges will have to be overcome. The main di� culties are the escalating cost level and the lack of capacity in the sector.

“Instead of just waiting for something to happen, we are now taking control of our own future. Through the ‘Statoil Subsea Improvement Project’ we have looked into what can be done to improve e� ciency in the subsea sector,” says project manager Johan Kr. Mikkelsen at Statoil.

Third-party companies allowed accessThrough the improvement project, Statoil has defi ned fi ve areas in which they will make a change for the better. These are technical integrity, planning and predict-ability, e� ective after-market, standard-ization and organization, and roles and responsibilities, and are areas where Statoil will look at its own practices as well as implement more stringent require-ments for suppliers.

One of the likely outcomes of this project is that Statoil will allow for main-tenance work on subsea equipment to be performed by third-party companies.

Until now it has been common practice in Norway for this type of maintenance to be carried out by the company supplying the equipment.

“80% of our subsea equipment is over 10 years old, and in the long

term this means an increased need for

maintenance. After looking into avail-able capacity in the industry, we have come to realize the challenges we are facing in terms of future require-ments. The indus-try is heading for a capacity crunch. In order to improve this area, we would

like to qualify third-party companies to compete for maintenance contracts on subsea equipment,” says Mikkelsen.

The aim is to lower the cost level by 20% and reduce the lead-time to four months, i.e. the time elapsed from when the equipment arrives at the workshop and until it is ready for mobilization. “This qualifi cation process will start early in 2014,” says Mikkelsen.

Stronger collaboration with system and technology suppliersHe underlines that a large proportion of this maintenance work will still be carried out by the company’s current suppliers.

“Close collaboration with the system suppliers behind the development and building of technology solutions will be of utmost importance, but we have to strengthen our long-term planning and predictability in order to achieve improved interaction and e� ciency,” says Mikkelsen.

Statoil points out that there is mutual interest in strengthening collaboration in order to maximize the value added by the

technology delivered. “We will have to get together to look at the overall quality and costs, both in terms of completed instal-lations and any future project deliveries,” says Mikkelsen.

Long term commitmentsAccording to Mikkelsen, the future market will present major capacity challenges. The young and underdeveloped after-mar-ket is particularly vulnerable amid growing global demand. This is why it is important to Statoil that the company, together with license partners, is able to manage this trend by making long-term commitments, and through this achieve improved cost-levels and shorter lead-time on deliveries.

“Our target is to operate on a 3-year basis, in order to provide the prerequisites for more e� cient deliveries from our sup-pliers,” says Mikkelsen.

He adds: “I often say that it is more demanding to be a good commissioning company than a good supplier. The objec-tive of the project is improved e� ciency internally, but at the same time we would like to increase the predictability for the benefi t of our suppliers. As predictabil-ity is important in terms of factors such as increase in sta� ng levels and new

Statoil takes action for improved e� ciencyCost levels and complexity in the subsea industry have escalated.

As a result, the Norway’s Statoil is taking steps to increase e� ciency and

cost-e� ectiveness in the sector.

Project manager Johan Kr. Mikkelsen, Statoil

The subsea Tordis project, o� shore Norway. Credit: FMC, Kongsberg Subsea and Statoil.

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NCE SUBSEA FOCUS 2014

Supplement to O� shore Engineer NCE Subsea 11

technology delivered. “We will have to get together to look at the overall quality and costs, both in terms of completed instal-lations and any future project deliveries,” says Mikkelsen.

Long term commitmentsAccording to Mikkelsen, the future market will present major capacity challenges. The young and underdeveloped after-mar-ket is particularly vulnerable amid growing global demand. This is why it is important to Statoil that the company, together with license partners, is able to manage this trend by making long-term commitments, and through this achieve improved cost-levels and shorter lead-time on deliveries.

“Our target is to operate on a 3-year basis, in order to provide the prerequisites for more e� cient deliveries from our sup-pliers,” says Mikkelsen.

He adds: “I often say that it is more demanding to be a good commissioning company than a good supplier. The objec-tive of the project is improved e� ciency internally, but at the same time we would like to increase the predictability for the benefi t of our suppliers. As predictabil-ity is important in terms of factors such as increase in sta� ng levels and new

premises, this is something suppliers have requested.”

Increased standardization and improved interactionHe emphasizes that there is no doubt that cost-e� ective solutions for the future will depend on rigid standardization. Much of Statoil’s current equipment is due to be renewed, and large parts of this di� er in technical specifi cations. Hence, it is important for the company to fi nd technical solutions that can be used more universally at these installations.

“Subsea is the sector in the oil and gas industry with the sharpest hike in costs. Such conditions are of no benefi t to anyone, and it is important that all involved do their utmost to turn this trend. Industrialization and standard-ization throughout the supply chain are necessary in order to achieve the improvements required. Good interaction with common targets will be paramount,” says Mikkelsen.

This is why Statoil has introduced the pilot project Supplier Board. The main dif-ference from the current meeting arenas

is that all those involved come together in a meeting where a company, such as Statoil, presents an outline of any future needs, and hence provide the suppliers with the prerequisites for e� ective produc-tion planning.

“This is intended as an arena for con-structive feedback between suppliers and customers in areas that are not sensitive in terms of competition,” says Mikkelsen.

Deserves creditTrond Olsen, the former CEO at the Norwegian Centre of Expertise Subsea, feels

that Statoil deserves credit for initiating this project.

“This is a proac-tive step by Statoil.

The company has identifi ed a need for improved e� ciency, and takes the action it deems necessary. Main suppliers in the sector may not be equally happy with the changes this entails, but Statoil

looks to the future and should be com-mended for doing so,” says Olsen. •

The subsea Tordis project, o� shore Norway. Credit: FMC, Kongsberg Subsea and Statoil.

Trond Olsen

Find your subsea partnerSubsea Index is a bi-lingual match-making tool in English and Portuguese. Utilize it to search for new opportuni-ties in the subsea industry.

The intent of the database is to create business opportunities by pro-viding accessible and searchable high quality, business relevant data about companies and organizations related to the subsea industry. Information is available in English and Portuguese.

To help subsea companies fi nd the right research and development part-ners, the database also includes addi-tional information about research and development institutes and universi-ties. In Subsea Index you can search for information about the scientifi c and engineering disciplines that potential research and development partners focus on, as well as other relevant information about each organization.

A wide range of external fund-ing opportunities are available for research and development projects. Subsea Index also provides informa-tion about some of the most relevant research and development programs and call for proposals for the subsea industry.

The database has had a signifi cant increase in number of users since it was fi rst launched in 2009, and visi-tors cover all major subsea markets globally.

Registrations free of chargeRegistrations in Subsea Index are

free and available to all companies and organizations delivering products and services in the global subsea industry. To be able to provide high quality infor-mation it is important all registrations are updated annually. Once a year all contacts will be reminded to update the company’s Subsea Index profi le.

Subsea Index is owned and operated by the Norwegian Centre of Expertise Subsea (NCE Subsea).

Visit www.subseaindex.no to make a new entry, and use the database to fi nd your partner in business, research and development, education and training. •

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Page 28: Asian Oil and Gas-January-February 2014

NCE SUBSEA FOCUS 2014

201412 NCE Subsea

Composites have been used in the oil and gas industry in

a variety of applications over the past 20 years, including onshore production piping, fi re water pipe, and repair.

Now, increasing demands on materials to meet future technical requirements, such as the demands of deepwater develop-ments, have led the industry, including Norway, to look more closely at composites.

Using glass fi ber reinforced plastic (GRP) and carbon-fi ber reinforced plastic (CFRP) makes it possible to create advanced composite materials, with high mechani-cal strength, low weight, and high thermal insulation. They also o� er a maintenance free option, with dimensional stability and high corrosion and chemical resistance.

“The focus for these materials is deep-water,” says Per Arne Edvardsen, man-aging director of Vello Nordic AS, which has manufactured GRP and CFRP since 1965, in both cold-/hot pressing and sheet molding compound (SMC)/ bulk molding compound (BMC) pressing. Today the company specializes in pultrusion.

The company, based in Skodje, Norway, started working in the oil and gas sector in 2001, working with companies including Aker Solutions and FMC Technologies.

This has seen investment in the devel-opment of new technologies, including

the fi rst carbon-fi ber cable for use in riser-less well intervention (RLWI), in partnership with FMC. Vello has also provided GRP for deck gratings, on topsides. But it has more potential, says Edvardsen.

“We think, with this technology, you can go further,” says Edvardsen. “You

can go deeper with CFRP material than you can with

traditional materials today. The weight and strength ratio will be completely di� er-ent. That is the main drive.”

However, to date, deepwater develop-ments are still rela-tively new, with few projects developed.

Technology developers like Vello face a ‘chicken and egg situation,’ where to get their technologies developed, they need the materials qualifi ed, but the qualifi ca-tion process is too costly for smaller tech-nology development companies, so they need to manage to persuade an operator to try their materials, says Edvardsen.

Engineering practice also needs to

catch up with composite technologies, as engineers still focus on using metals in their engineering, says Edvardsen, which has meant it has taken longer to com-mercialize such technologies. The 2010 Macondo disaster in the Gulf of Mexico has also introduced a level of caution.

“I think it will start to make a real dif-ference in deepwater in about 5-10 years’ time,” says Edvardsen. “We see develop-ment projects taking 3-5 years to become commercialized, then they have to prove the technology for them.”

Vello’s projects include the VELLO Umbilical Rod, a high modulus carbon-fi ber rod produced in long lengths, for use in umbilicals in deep waters. These have been used as strengthening members in deep water umbillical installations in the Gulf of Mexico, down to 2800m water depth, and o� shore Angola, on BP’s PSVM develop-ment, to 2100m water depth, with plans to use similar material as armoring in fl exible risers for ultra-deepwater installations.

Vello is currently working with NKT Flexibles to manufacture lightweight reinforcement for NKTs Flextreme pipe concept for deep water.

“We have some projects we hope will happen this year. Two to three years ahead, we have some new projects also, such as lightweight reinforced fl exible pipes and dif-ferent types of fl exible cables.” •

Deeper, lighter, compositesComposite technology is rising to the challenge of deepwater developments—but are deepwater developments

ready for composites? Elaine Maslin asks Vello Nordic AS.

Per Arne Edvardsen

An Aker Solutions’ umbilical with Vello’s umbilical rod placed around the circumference.

Left: A composite cable with electrical conductors for well intervention.Right: Carbon fi ber creels - the raw material used for making CFRP.

Brazil beckonsBrazil has proved a fertile market for technology development and expansion for Bergen’s AS Connector.

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Page 29: Asian Oil and Gas-January-February 2014

NCE SUBSEA FOCUS 2014

Supplement to O� shore Engineer NCE Subsea 13

catch up with composite technologies, as engineers still focus on using metals in their engineering, says Edvardsen, which has meant it has taken longer to com-mercialize such technologies. The 2010 Macondo disaster in the Gulf of Mexico has also introduced a level of caution.

“I think it will start to make a real dif-ference in deepwater in about 5-10 years’ time,” says Edvardsen. “We see develop-ment projects taking 3-5 years to become commercialized, then they have to prove the technology for them.”

Vello’s projects include the VELLO Umbilical Rod, a high modulus carbon-fi ber rod produced in long lengths, for use in umbilicals in deep waters. These have been used as strengthening members in deep water umbillical installations in the Gulf of Mexico, down to 2800m water depth, and o� shore Angola, on BP’s PSVM develop-ment, to 2100m water depth, with plans to use similar material as armoring in fl exible risers for ultra-deepwater installations.

Vello is currently working with NKT Flexibles to manufacture lightweight reinforcement for NKTs Flextreme pipe concept for deep water.

“We have some projects we hope will happen this year. Two to three years ahead, we have some new projects also, such as lightweight reinforced fl exible pipes and dif-ferent types of fl exible cables.” •

By Elaine Maslin

Bergen’s AS Connector is a company that has quickly grown its inter-

national presence through technology innovation.

The company, founded in 2000, pro-vides services and equipment for deepwa-ter pipeline inspection, maintenance and repair. It has been working with Brazil’s Petrobras since 2002, and expanded into several new markets in 2013.

Projects o� shore Brazil include provid-ing a complete deepwater pipeline repair system, installation and supply of sea-bottom riser protection, and correcting pipeline freespans, all involving tools and equipment developed in-house.

AS Connector also developed a remotely-operated riser cleaning and inspection tool, The Riser Sovereign, spe-cifi cally for a requirement by Petrobras’ to clean and verify the integrity of fl exible pipelines, says Pål Magne Hisdal, manag-ing director.

The tool is self-propelled and operated like an ROV. It can attach itself to risers, and drive along, removing marine growth, and performing inspections, to provide detailed information about the riser’s integrity.

“The relationship with Petrobras has developed over many years, and originally

came about because Petrobras was look-ing for a new emergency pipeline repair systems (EPRS),” says Hisdal.

“At that time, AS Connector had only worked a couple of years on integrat-ing hydraulics into equipment used for diverless pipeline repair, resulting in more lightweight and robust equipment, and enabling simpler and more cost e� ective operation.“Petrobras took this concept to heart, and also helped develop the system further by incorporating additional functionality, and applying it to real life applications.”

Since then, AS Connector has worked closely with Petrobras, developing a suite of equipment to solve challenges related to deepwater pipelines. Another

example is AS Connector’s lightweight pipeline lifting tool, which can fi t into a 10ft container, and has capacity to lift and shift large pipelines. This tool, together with a procedure developed in cooperation with Petrobras, has now been used in hundreds of deepwater operations to correct pipe-line freespans.

Because of the increase in work, AS Connector has been growing, and not just in Brazil. At the start of 2014, the company had 40 sta� , mostly engineers, based in Norway, Bosnia, Croatia, and Brazil. By the end of the year, it expects this to have grown to 65. •

Brazil beckonsBrazil has proved a fertile market for technology development and expansion for Bergen’s AS Connector.

Pål Magne Hisdal, managing director, AS Connector (furthest to the left)

The Riser Sovereign. AS Connector’s pipeline repair tool system.

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Page 30: Asian Oil and Gas-January-February 2014

THE FUTURE OF SOLUTIONS

NCE SUBSEA PARTNERS NCE SUBSEA MEMBERS

More than 130 companies and organisations form the body of the NCE Subsea cluster.

NCE Subsea is supported by: Innovation Norway, the Industrial Development Corporation of Norway and the Research Council of Norway.

WORLD-CLASSSUBSEA SOLUTIONSFROM NORWAY

www.ncesubsea.no

The Norwegian Centre of Expertise (NCE) Subsea is an initiative by the subsea industry for the strengthening and internationalisation of business, R&D and education. We bring together and promote the Norwegian subsea industry, which constitutes a world leading environment for subsea solutions.

To achieve our goals, we work within four focus areas;• Attract and retain talents• Stimulate innovation

• Utilize business potential• Enhance market orientation

design

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NorwegianPiping

METALLVAREFABRIKK AS

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NCE.indd 14 1/20/14 7:50 PM

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Page 31: Asian Oil and Gas-January-February 2014

THE FUTURE OF SOLUTIONS

NCE SUBSEA PARTNERS NCE SUBSEA MEMBERS

More than 130 companies and organisations form the body of the NCE Subsea cluster.

NCE Subsea is supported by: Innovation Norway, the Industrial Development Corporation of Norway and the Research Council of Norway.

WORLD-CLASSSUBSEA SOLUTIONSFROM NORWAY

www.ncesubsea.no

The Norwegian Centre of Expertise (NCE) Subsea is an initiative by the subsea industry for the strengthening and internationalisation of business, R&D and education. We bring together and promote the Norwegian subsea industry, which constitutes a world leading environment for subsea solutions.

To achieve our goals, we work within four focus areas;• Attract and retain talents• Stimulate innovation

• Utilize business potential• Enhance market orientation

design

by colo

urs.n

o

COAST CENTER BASE AS

NorwegianPiping

METALLVAREFABRIKK AS

Mjøs Metallvarefabrikk.pdf 1 15.05.13 18:14

PMS cmyk

o�shore asULTRA SONIC INTELLIGENT SENSORS

NCE.indd 15 1/22/14 11:02 AM

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Page 32: Asian Oil and Gas-January-February 2014

Bergen-based Biota Guard AS has been developing a system using live mussels, with an array of other sen-sors, to provide an integrated leak detection system, with real-time avail-ability of data, analyzed by complex algorithms to avoid false alarms, and to monitor long term trends.Naxys AS, acquired by GE Oil & Gas’ Measurement & Control business last year, has developed acoustic and electronic leak detection technology, which can be used in combination. Trondheim-based Trollhetta AS has developed a leak detection system based on analysis of video and images from subsea cameras. Earlier last year (2013), DNV held a workshop with a view to launching a joint indus-try project on leak detection.

NCE SUBSEA FOCUS 2014

201416 NCE Subsea

By Elaine Maslin

A need for higher standards and capa-bilities in environmental monitoring,

especially real-time leak detection, is being driven by regulatory changes and moves by the industry into more envi-ronmentally sensitive areas, such as the arctic.

In Norway, remote monitoring technolo-gies have been highlighted as a specifi c need, following the identifi cation of shortcomings in leak monitoring on the Norwegian Continental Shelf by the coun-try’s authorities.

Norway’s Climate and Pollution Agency (KLIF), now the Miljødirektoratet Norwegian Environment Agency, already sets out a requirement for operators to detect acute pollution as soon as possible. Last year, Norwegian regulators set out new rules, making leak detection manda-tory in the country’s waters.

Norwegian fi rms have been prepar-ing for the changes, with an emphasis on integrated real-time monitoring.

Kongsberg Oil & Gas Technologies is leading a project with Kongsberg Maritime Subsea, DNV GL, IBM, and Statoil on an integrated environmental monitor-ing (IEM) system, which can operate real-time.

Statoil says it currently uses several

environmental monitoring (EM) methods at its installations. It would like a solution, which it says is currently not available on the market, which integrates and enables physical, biological and chemical data to be measured during actual operations.

“An ever-increasing share of our production takes place subsea, in areas located far away from other

infrastructure – such as the far north. The

potential for EM as part of our day-to-day operations is considerable. EM will also make it possible to shut down production or cease construc-tion activity during environmentally sensitive periods,” says Statoil R&D head Karl Johnny Hersvik.

Arild Brevik, business development manager, underwa-ter monitoring and control, in Kongsberg Maritime’s Subsea Division, says: “Real-time access to data is a basis for online processing and fast response. ‘Real-time’ is the key. Other solutions that have been in the market place have been o� ine—you have to recover the system to read out the data. Now it is real-time systems that are essential.”

As well as the IEM project, Kongsberg has been working on a number of R&D projects relating to environmental monitoring and leak detection. In summer 2013, it fi nished sea trials, in Trondheim,

A real-time requirementfor leak detection

Arild Brevik, business development manager, underwater monitor-ing and control, in Kongsberg Maritime’s Subsea Division

Photo courtesy of Mark Johnson

© 2011 rigmover.com

NCE.indd 16 1/22/14 10:12 AM

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Page 33: Asian Oil and Gas-January-February 2014

NCE SUBSEA FOCUS 2014

Supplement to O� shore Engineer NCE Subsea 17

infrastructure – such as the far north. The

potential for EM as part of our day-to-day operations is considerable. EM will also make it possible to shut down production or cease construc-tion activity during environmentally sensitive periods,” says Statoil R&D head Karl Johnny Hersvik.

Arild Brevik, business development manager, underwa-ter monitoring and control, in Kongsberg Maritime’s Subsea Division, says: “Real-time access to data is a basis for online processing and fast response. ‘Real-time’ is the key. Other solutions that have been in the market place have been o� ine—you have to recover the system to read out the data. Now it is real-time systems that are essential.”

As well as the IEM project, Kongsberg has been working on a number of R&D projects relating to environmental monitoring and leak detection. In summer 2013, it fi nished sea trials, in Trondheim,

for a project called CLAM. Its ALDOG, started by Statoil, looked as subsea gas methane leak detection.

Kongsberg Maritime recently boosted its expertise in the area, buying German subsea engineering services fi rm Embient. The Hamburg-based fi rm, founded in 2010, focuses on integrating subsea technologies into complete packages and solutions.

In particular, it looks at underwater inspection and monitoring, and subsea leak detection, including acoustic leak detection. Kongsberg Maritime is agreed to work with Germany’s CONTROS Systems & Solutions, which develops, produces and markets underwater sensor systems, to detect dissolved gasses such as hydrocarbons, CO2 and oxygen, as well as pH.

In the IEM project with Statoil, the aim is to develop a real-time integrated environ-mental monitoring concept, by building on current technologies and developing new subsea and topside data technology.

Current practice involves point samples of selected physical/chemical and biologi-cal parameters, including sediments, the water column, soil and ground water, as well as remote sensing, follow-up after spills, and visual surveys.

Real-time monitoring involves four main areas: sensor technology for acquisition of data; communication infrastructure; data analysis; and sensor carriers, says Brevik.

Kongsberg already operates in most of these areas, with a range of its own sen-sors, including hydro acoustic, ultrasound, hydrophone. It is also using third party sensors.

“The key is to fi nd the right sensors for various applications,” says Brevik. “Hydroacoustic sensors will detect gas in bubble shape over distances of several hundred meters, while hydrocarbon sn� ers and point sensors will verify and classify. “

Kongsberg has exist-ing wireless technology and communication transponders, like cNODE. For sensor car-riers, Kongsberg also uses cNODE, or Landers (integrated sensor units), as well as mobile sensor units, like AUVs, like the recently introduced Seaglider, intrument ROVs, and also surface

vessels, for the purpose of leak detection. A part of the IEM project has been a

challenge to develop a system for moni-toring the e� ect of drilling operations, including what happens to drill cuttings, in order to protect cold water corals in the North Sea.

The system integrates a number of measurements, including current, and the amount of drill cuttings produced, so that operations can be tailored to protect the corals by predicting where drill cuttings would fall, and so potentially redirecting them. Tests have been carried out o� Horten Pier, at Kongsberg’s subsea prem-ises, Norway.

The project involved integrated sensor landers. “There is a higher interest now in integrated sensor landers,” says Brevik. “There is a case for the integration of di� erent sensors, and integration of data from di� erent sensors. Monitoring of drill cuttings is a good example of this.”

Statoil R&D head Karl Johnny Hersvik says making environmental monitoring an integral part of daily production would be a big step forward.

“If we succeed in taking environmental monitoring from being a separate task to

become an integrated part of daily pro-duction, we will achieve even safer opera-tions and reduced costs,” he says. “This will represent a quantum leap for o� shore environmental monitoring.” •

A real-time requirementfor leak detection

Kongsberg Maritime’s Seaglider. Image courtesy of Kongsberg Maritime.

Kongsberg Maritime’s cNODE. Image courtesy of Kongsberg Maritime.

A Kongsberg Maritime subsea lander.Photo courtesy of Kongsberg Maritime.

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Page 34: Asian Oil and Gas-January-February 2014

NCE SUBSEA FOCUS 2014

201418 NCE Subsea

By Heidi Skålevik, branding manager, NCE Subsea

Norwegian Centre of Expertise Subsea (NCE Subsea) has the ambition to

be a facilitator for the Norwegian subsea industry and support its status as a global subsea-hub and a world-class cluster.

In 2013, NCE Subsea was awarded Gold Label of Cluster Management Excellence. This is a major achievement and an international acknowledgement of the work performed by the cluster facili-tator, since 2006. The award sums up thoroughly-planned and executed e� orts over many years. Through long-term commitment from cluster partners and members, as well as a team of cluster and subsea professionals, we have provided substantial results contributing to inno-vation and value creation for the cluster.

The results in NCE Subsea have caught

attention internationally. The state gov-ernment of Rio de Janeiro turned to NCE Subsea for input and support in the forma-tion of a local subsea cluster. According to an agreement with the Secretariat of Economic Development, Energy, Industry and Services (SEDEIS), NCE Subsea is to

assist the state government in the modeling and manag-ing of the Rio de Janeiro subsea cluster. When the state

government asked for our assistance, it is because they see what we have accom-plished in Norway and that they have something to learn both in the develop-ment of a cluster and as a facilitator in the creation of new partnerships.

NCE Subsea have been working closely with the supply industry for several years to enable innovation, better technological solutions, and o� er a better understanding of the market. We have gained a lot of expe-rience and are happy to pass this on. •

World Class Cluster

A memorandum of understanding was signed by Julio Bueno, secretary of economic development in the state of Rio de Janeiro, and Trond Olsen, former CEO of NCE Subsea, at the headquarters of SEDEIS, in September, 2013. Sub-secretary Marcelo Vertis (left) and the Norwegian Consul General in Rio de Janeiro, Helle Klem, were also present.

NCE Subsea is an initiative by the subsea industry for the strengthening and internationalization of business, R&D and education. It brings together and promotes the Norwegian subsea industry, which constitutes a world leading environment for subsea technology.

Organizations established in Norway that provide products or ser-vices in or to the subsea industry, or aim to do so, can be a member in NCE Subsea. Partnership is to awarded R&D and educational institutions, authorities, and companies, consid-ered particularly important for the development of the subsea industry.

The objective of NCE Subsea is to promote innovation, increase inter-national involvement and improve the capacity, competitiveness and value creation of individual players within the cluster and for the cluster as a whole.

In 2006, the cluster was appointed Norwegian Centre of Expertise by the Norwegian government. The NCE program is owned by Innovation Norway, the Industrial Development Corporation of Norway (SIVA) and the Research Council of Norway.

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Page 35: Asian Oil and Gas-January-February 2014

Solving yourinnovation needs!

TECHNI ASYnglingeveien 42ANO-3184 BORRENORWAY

[email protected]

DRIVES

ACTUATORS

SENSOR SYSTEMS

CONTROL SYSTEMS

TOOLS

TECHNI is an award-winning innovation company within development and manufac-ture of sensors, controls and special tools. The company has delivered bespoke solutions for wellbore and subsea since 1997 and has multiple technology platforms to back up new excellent, practical solutions to your challenges.

Top view

Please visit us to discuss your challenges under one of the following conferences in 2014.

Apr 2.-3. SubSea ValleyMay 5.-8. OTC stand No 5141Jun 18.-19. UTC Bergen Aug 25.-28. ONS stand No M1100

Latest innovationB annulus monitor – the electronics less wirelessTECHNIs latest contribution to a safer tomorrow is the patented electronics less wireless pressure and temperature gauge called BAM.The system reads pressure and temperature through the thick steel walls of the casing, and it does so without installing fragile electronics inside the wellbore.

An electronics less wireless! Going beyond the barriers without fragile electronics!

NCE.indd 19 1/20/14 7:53 PM

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Page 36: Asian Oil and Gas-January-February 2014

NCE SUBSEA FOCUS 2014

201420 NCE Subsea

A key component of the subsea produc-tion system is power supply, to pro-

vide electricity to the pumps and compres-sors of the seabed factory of the future.

Currently, power is supply through single cables from the power source for each power consumer, i.e. pump or com-pressor. But work is underway to develop a subsea electrical power distribution system, which would use one power cable. This is a powerful incentive when cables signify a large proportion of the cost of subsea processing systems.

Statoil estimates, in a case with eight consumers (pumps or compressors) and a distance of 200km from infrastructure, an electrical power distribution solution would reduce capital expenditures by more than US$500 million.

The technology would also enable the transmission of electrical power over long distances—key for the development of remote fi elds located far from infrastruc-ture, including arctic areas.

Jan Erik Lystad, an engineer with Siemens, Trondheim, says: “Although conditions on the ocean fl oor are extreme, they are also stable. Temperatures stay at around 4°C and there are no storms or

icebergs. This makes deep-sea facilities much less prone to faults and more cost-e� cient than conventional systems.”

A number of projects are ongoing to cre-ate deepwater electrical power distribution. • At a research center in Bratsbergveiein, near Trondheim, Siemens is developing a subsea power system.

The center has been testing transistors, connectors, and other components for up to six months at up to 460 bar (the pres-sure at 4600m) during continuous opera-tion. To simulate aging, the temperature is kept at 95 degrees C.

The center has so far completed a deep-sea transformer and a 35-ton switching station, both of which have been combined into platforms covered with zinc plates, to protect them from salt water corrosion, and dipped in Trondheim harbor.

They are now working to complete a fre-quency converter, which ensures that oil pumps or gas compressors are supplied with the right operating voltage. Once complete, all three components will be assembled into a single network, weighing about 100-ton, for a fi nal test. • In 2012, DNV, in Høvik, unveiled its OPera concept. OPera is a fl oating power

hub and electrical distribution system, which could supply power to a network of o� shore installations. It would have a 700MW power plant, recovering exhaust heat from seven gas turbines, to drive a second cycle of three steam turbines, with both cycles spinning electrical generators. Transformers step up the voltage before the power is distributed, using 132 kV AC power. It could be mounted on a semisub-mersible platform. • Statoil, with a number of other oil com-panies, and ABB have entered an agree-ment to develop subsea electrical power transmission, distribution, and power con-version systems for 3000m water depth and over long distances.

The total cost for the program, which has a duration of fi ve years, is US$100 mil-lion, including ABB funding.

“The challenge is the distribution of AC power at longer distances,” says Marco Gabelloni, senior engineer, Aker Solutions. “There are some limitations in the distance you can transmit with AC power, without having stability issues. Åsgard is a short distance, 40km. Ormen Lange is longer, driving the need for a di� erent power distri-bution system. The Ormen Lange pilot has a subsea variable speed drive, because of this longer distance.

“The challenge with a subsea VSD is you have quite a big and complex electronic system on the seabed, posing challenges in terms of access to this system, in case an intervention is needed. This is an area where the industry is looking for a simpler system.”

A longer term aim is moving to DC power transmission.

Control systems, for process and power, will also pose a challenge to the industry as it goes into deeper waters. “The challenge is with installation, and the requirement to have intervention, and retrieval, of these modules in deeper and deeper waters,” says Gaballoni. •

Powering the futureSubsea processing is growing - and so are requirements for more power on

the seabed. Elaine Maslin takes a look.

Siemens Subsea Power Grid (middle), Subsea

Distribution Unit (in front of Power Grid),

Subsea Connector (middle), Anguila High-

Power Changeover Switch and Anguila

Cobra Head (left, X-mas tree).

Image courtesy of Siemens AG

A Siemens transformer that has passed its shallow water test. Before that, its components were tested in pressure vessels.

Photos courtesy of Siemens AG.

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Page 37: Asian Oil and Gas-January-February 2014

CMR’s 12MW concept

template.

NCE SUBSEA FOCUS 2014

WORLDWIDE LIFTING, DRILLING AND SUBSEA SOLUTIONS

www.huismanequipment.com

CRANES / PIPELAY / DRILLING / WINCH SYSTEMS / HEAVE COMPENSATION / NEW DESIGNS / SPECIAL PROJECTS

NCE subsea advert - 212.72 x 142.875.indd 1 14-1-2014 10:49:11

An NCE Subsea-funded study by Christian Michelsen Research (CMR),

in cooperation with Inventas AS, sets out a new concept, in which locally available natural gas could be used to produce electricity through using fuel cells.

The CMR Subsea Fuel Cell Power Plant will provide electrical power to subsea pumps, electrical submersible pumps, and subsea gas compressors. It would be able to produce 12MW of power, within a subsea system, removing the requirement for expensive, long-distance cabling, and providing a safe and reliable source of power generation.

The concept has been created as a local power solution for future subsea factories—seabed developments com-prising process plant, including subsea pumping and gas compression, and enabling remote-controlled transport of oil and gas. Both subsea pumping and gas compression improve oil and gas reourse utilization, through higher recovery rates,

reduced production costs, and enabling production from deep water, on longer step-outs, and in harsher environments.

A key element of the subsea factory is the power supply. “Cables are a major cost driver for subsea processing systems—and the longer and more powerful the cable, the more it will cost,” says Bernt Skeie, CEO Prototech, part of CMR. “If power could be produced locally, cable cost would signifi cantly reduce. In a factory with eight pumps, or compressors, and a 200km step-out distance, local power gen-eration would reduce capital expenditure by more than US$500 million.”

CMR’s fuel cell power plant was devel-oped using the company’s over 20 years experience in fuel cell development and design, amd oil and gas experience. Fuel cell technology has made great strides in recent years, and plants with a capacity of up to 30MW are already installed on land.

“Fuel cells convert chemical energy from fuel into electricity, through a chemical reac-tion with oxygen or another oxidizing agent,” says Vegard Laukhammer, sales and mar-keting manager, Prototech. “Hydrogen is the most common fuel, but hydrocarbons such as natural gas, and alcohols like methanol,

A fuel cell futureMulti-megawatt fuel cells could provide power to future subsea factories.

CMR’s 12MW concept

are sometimes used. Fuel cells are di� erent from batteries in that they require a constant source of fuel, and oxygen/air to sustain the chemical reaction; however, fuel cells can produce electricity continually for as long as these inputs are supplied.

CMR’s subsea fuel cell power plant will be based on commercially available fuel cell modules stacked together to produce the necessary power output. A 12MW power plant will comprise 2MW replace-able fuel cell modules, fi xed to a frame, consisting of all necessary balance of plant components.

Natural gas from the reservoir and oxy-gen piped from the surface will be fed into the fuel cells to create electricity, which is then sent via cable to a power distribution unit. CO2 produced in the process would be stored or brought to the surface. It will be protected by a traditional subsea structure, and designed for easy access, for swapping out modules.

“By introducing a subsea fuel cell power plant in the subsea fi eld, operators will be able to eliminate the need for long distance cabling,” adds Skeie. •

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Page 38: Asian Oil and Gas-January-February 2014

NCE SUBSEA FOCUS 2014

201422 NCE Subsea

Q. Scantrol has experienced great international success in recent years. How do you explain this?

Anette: “The key to our suc-cess is that we supply standard-ized, proven and user-friendly technology. So far, 1035 vessels worldwide are deployed with Scantrol systems. We have a dedicated team at our head o� ce in Bergen but our main operations are international. Over a long period of time, we have established know-how and an international network of partners on all continents, accessible for customers in need of service for their products. Our strategy is that, after training, our custom-ers will be able to do most of the support on the Scantrol systems themselves.”

Q. Asia has become an important market for you. Tell us more about your strategy there.

A: “In recent years Singapore has been an important market for us, where we have now established a solid position with the Scantrol Active Heave Compensation (AHC) System. One example is Fugro Subsea Technologies, who has chosen

Scantrol as AHC partner for its launch and recov-

ery systems (LARS). Their main reason for investing in AHC technology is to increase opera-tional time for the ROV support fl eet. In addition, AHC technology can reduce the reliance on ROV piloting skills, required for certain subsea

operations.”“In addition to fi tting AHC systems

on LARS systems, Scantrol is also working on a number of crane projects. One interesting project uses fi ber rope, instead of steel wire, for subsea operations. The crane takes 4000m of fi ber rope and will be in operation onboard a vessel owned by one of the main subsea contractors. This is a very interesting project, since the fi ber rope can result in more

e� cient subsea operations on even deeper water.”

Q. Tell us more about Scantrol AHC?A: Scantrol AHC is a control system for

winches and cranes used for e� cient sub-sea operations. The control system makes it possible to fi lter away vessel motion that would otherwise have been transferred to the load. The system facilitates safe and e� cient operation even in extreme weather conditions. The benefi ts are reduced operational time and costs.

Q. How about China? A: We work closely with our Chinese

sales and service agent, Powertech, to be present in an important growing market. China is investing heavily in technology, in order to develop the search for petroleum in the Far East. Their focus on develop-ing an o� shore fl eet is attracting Chinese crane manufacturers, and all of the o� shore vessels will be built in China. AHC functions will be specifi ed for the equip-ment onboard many of them. Equipment

built by the crane manufactur-ers is to be used on the

Chinese fl eet, and will not be exported. The

value of such a fl eet can become very benefi cial for China in the future.

Q: What are your future plans for keeping up your international success?

Darren Hammersland-White, technical

manager at Scantrol: “Deep Vision is one of our most exciting projects, an underwa-ter camera system that can identify and measure objects. The system has been developed for marine research purposes and has been tested in cooperation with the Institute of Marine Research in Norway.” •

Scantrol focusing on AHC in AsiaNorwegian control system specialist Scantrol is no stranger to international growth. The company’s current focus is on the Asian market. Marketing coordinator Anette Isabella Bergaas tells us more.

Technical manager Darren Hammersland-White

Marketing coordinator Anette Isabella Bergaas

Scantrol’s AHC system as part of a launch and recovery system.

A team at Scantrol’s head o� ce in Bergen works to develop new

products, including Deep Vision, an underwater camera system that can

identify and measure objects.

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Page 39: Asian Oil and Gas-January-February 2014

NCE SUBSEA FOCUS 2014

Supplement to O� shore Engineer NCE Subsea 23

e� cient subsea operations on even deeper water.”

Q. Tell us more about Scantrol AHC?A: Scantrol AHC is a control system for

winches and cranes used for e� cient sub-sea operations. The control system makes it possible to fi lter away vessel motion that would otherwise have been transferred to the load. The system facilitates safe and e� cient operation even in extreme weather conditions. The benefi ts are reduced operational time and costs.

Q. How about China? A: We work closely with our Chinese

sales and service agent, Powertech, to be present in an important growing market. China is investing heavily in technology, in order to develop the search for petroleum in the Far East. Their focus on develop-ing an o� shore fl eet is attracting Chinese crane manufacturers, and all of the o� shore vessels will be built in China. AHC functions will be specifi ed for the equip-ment onboard many of them. Equipment

built by the crane manufactur-ers is to be used on the

Chinese fl eet, and will not be exported. The

value of such a fl eet can become very benefi cial for China in the future.

Q: What are your future plans for keeping up your international success?

Darren Hammersland-White, technical

manager at Scantrol: “Deep Vision is one of our most exciting projects, an underwa-ter camera system that can identify and measure objects. The system has been developed for marine research purposes and has been tested in cooperation with the Institute of Marine Research in Norway.” •

Statoil gives the following statement to the subsea industry: “We are taking

subsea longer, deeper and colder. Through innovative thinking and collaboration with partners and suppliers, we aim to develop the elements required for a subsea factory by 2020.”

The statement has not been missed by NLI Subsea. “All main operators, like Statoil, predict a higher demand for services below the surface than above the surface, when it comes to future oil and gas exploration, production and process-ing,” says Erik Olsson, business develop-ment manager for NLI Subsea.

Growth, interna-tionally, as well as in Norway, is in NLI Subsea’s sights, after the division was spun-out of its parent com-pany NLI in 2012, and a period of consolida-tion in 2013-14.

NLI Subsea special-izes in the process of manufacturing subsea structures, connection systems, tools, and valves etc., through expertize in welding, cladding, machining, surface treatment,

assembly and testing, with some engineering design work undertaken by sister company NLI Subsea Engineering.

The company’s roots date back to par-ent fi rm NLI’s launch in a small mechanical workshop in Mjøndalen, Norway, in 1946. The fi rm starting working on subsea proj-ects in the early 1980s, having worked on topsides facilities, for companies including Statoil.

Since then, the company has had deliv-eries to subsea system companies, such as FMC Technologies, GE Oil & Gas and Aker Subsea, and installation companies

like Technip, Subsea 7 and EMAS Norway and internationally, with projects rang-ing from manifolds to tools, including NLI Subsea’s own products, such as valves, stabs, receptacles, and jumpers.

The last fi ve years, in particular, has seen signifi cant expansion and diversifi ca-tion for the business.

Early in 2013, recognizing growth in the market, NLI split into two companies, NLI Solutions and NLI Subsea. NLI Subsea has six subsidiaries, delivering engineering, products and fabrication services across six sites in Norway, and employing about 370 people, with turnover of NOK 650 million in 2013.

The business has also shifted focus from fabri-

cation of large subsea structures, like large

scale templates and manifolds, to work on smaller/medium size structures and complex systems, like connection systems, and smaller, high qual-ity subsea prod-ucts, like stabs and valves.

The future will see NLI Subsea continue to improve its fabrication services, comprising advanced machining, welding, assembly and test of complex subsea units and structures, says Olsson.

“In Norway we need to focus on what areas we still are competitive within,” he says. “Pure large scale steel deliveries

are hard to compete cost e� ective from Norway, but smaller, complex structures with high demands to quality and expertise still is.” •

Fabricating the subsea factoryNLI Subsea launched last year and the new business unit is looking toward global growth. Elaine Maslin reports.

Scantrol’s AHC system as part of a launch and recovery system.

Erik Olsson, business development manager, NLI Subsea

Cladding operations using Inconel alloy 625 in NLI Subsea’s cladding hub.

Multibore machining at NLI.NLI Subsea’s assembly connection system.

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Page 40: Asian Oil and Gas-January-February 2014

The future of oil and gas recovery involves accessing increasingly complex reserves. Operators are moving into deep and ultra-deep waters, expanding their oil and gas production into remote regions. Siemens is helping to make these field developments technologically and economically possible with an extensive portfolio of subsea products and systems, as well as with exemplary service and support. Covering everything from connectors and sensors to topside and onshore power supply, in-field subsea power distribution, control, surveillance and processing technologies, we enable enhanced recovery in the most challenging locations.

Answers for energy.

www.siemens.com /energy/subsea

The Siemens Subsea Power Grid reliably supplies and distributes power to numerous consumers across the seabed and downhole electrical submersible pumping systems (ESPs) from an onshore power plant or offshore platform. Currently undergoing the detail design and test phase, it incorporates proven high-quality Siemens industrial components, including transformers, switchgear and variable-speed drives. All power components can be installed separately or on a common structure located on the seabed. As such, it marks another milestone in powering large-scale seabed processing facilities – down to 3,000 meters and more.

Siemens Subsea Power Grid:Enabling large-scale subsea processingPowering installations on the seabed – down to 3,000 meters and more

NCE.indd 24 1/20/14 8:18 PM

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Page 41: Asian Oil and Gas-January-February 2014

NCE SUBSEA FOCUS 2014

Supplement to O� shore Engineer NCE Subsea 25

Norway’s subsea industry brings with it an innovative supply chain and

support services. One such company, Sea-Hawk Naviga-

tion, helps those operating vessels and submerged equipment control and manage what happens on the surface, as well as beneath the waves—a crucial factor when operating in iceberg-infested waters.

Founded in 2000, and based in Bergen, the company developed the Sea-Hawk Rader to give detailed coverage of ice, and other small targets, as well as oil spill detection.

Paul Her� ord, senior project engineer at Sea-Hawk, said the company’s radar sys-tem is based on its patented Polarimetric Radar. It is an IMO-approved navigation radar, comprising two radars in one; two X Band Transceivers and two antennas, in two di� erent polarizations.

“The two Antennas are mounted back to back, and rotate around a dual rotating joint,” he says. “The signals from the two radars are combined and processed to create a single image much like an aerial photograph.”

The company, which employs about

18 people, saw a need for better radar systems, explains Her� ord. “Sea-Hawk goes back to the 1980s, when o� cers in the Royal Norwegian Navy discussed the development of radar systems, which did not give improved performance over the years,” he says.

“All civilian radar companies were com-peting on the lowest price. So the idea to move towards higher quality, rather than low price, was lit. A few o� cers started with development work, and, based on the idea that two radars are better than one, they developed a system, the Polarimetric Radar, which is now patented.”

Seismic acquisition vessel companies were fi rst to use the system, and in 2012, it was successfully used on a major seismic acquisition campaign in the Arctic.

Polarcus deployed two ICE-1A class vessels, and one ICE-1A* class vessel, to complete two 3D surveys o� shore western Greenland. It was then the world’s largest arctic seismic exploration program, cover-ing Ba� n Bay, about 600km north of the Arctic Circle.

The 12-week summer campaign involved nine support vessels, operating

in groups, with the seismic vessels, dur-ing the operation. All 12 vessels were equipped with enhanced Sea-Hawk X9 ice-detection radars to detect ice. These were operated by two ice “navigators” on each of the vessels.

As part of an ice management plan, data from numerous remote information sources was also integrated.

Their use resulted in detection of numer-ous “growlers” (icebergs rising 1m out of the water, and 5m-long) in due time, and contact was avoided. Zero recordable inci-dents were experienced, with no signifi cant harm to personnel, marine life, vessels or equipment, and overall the project recorded a low technical downtime, at less than 3%.

Others using the radar include those wanting to detect pirates in small fast-going crafts, infl atable canoes and small boats, which the system is able to detect, leading to demand o� shore east and west Africa. Sea-Hawk’s Polarimetric technology can also detect oil slicks on the sea’s surface.

Development work on the radar systems continues, with Sea-Hawk further enabling their integration with other ship equipment, such as cameras or light sources, where radar is used to direct a camera or light towards an object found by the radar.

Sea-Hawk also enables “vessel system integration,” where operators can moni-tor various levels of information, such as radar, chart, satellite, sailing routes, etc., on top of each other, on one screen. This was already achieved with the ION Narwhal Ice Management system, for example. •

Shedding light on o� shore operationsSea-Hawk Navigation has taken the traditional

radar system to new levels—and environments. Elaine Maslin explains.

Suez Canal at Port Said waiting point, visualized by Sea-Hawk’s Polarimetric Radar.

A so-called “growler”, icebergs which protrude less than 1m above the surface, but can still create signifi cant issues for those operating o� shore. Photo courtesy of Mark Johnson

© 2011 rigmover.com

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Page 42: Asian Oil and Gas-January-February 2014

NCE SUBSEA FOCUS 2014

201426 NCE Subsea

Subsea meters in the North Sea are facing increasingly demanding

operator requirements in two key areas—accuracy and design.

First, it’s essential that subsea meters measure the fl ow rates of oil, water and gas, and characterize the most complex of fl ow regimes in all reservoir conditions and no matter the geological complexity.

With many ageing North Sea wells pro-ducing over a wider range of process con-ditions with more liquid and water present, meter accuracy is vital in handling these changing process conditions. Factors such as changing salinity and composition need to be automatically compensated for. Subsea meters that are operation-ally e� ective and can maintain accuracy over the entire GVF (gas volume fraction) range are key to preventing any lost profi t opportunities.

Second, there is the complexity of subsea fi eld equipment, with more com-plicated and crowded subsea equipment confi gurations and manifolds. Operators are looking for subsea meters that are suf-fi ciently fl exible, light and compact to fi t around existing infrastructure.

So how are subsea meters meeting these challenges?

The North Sea Ormen Lange develop-ment is one of the North Sea’s highest profi le fi elds and comes with challenges, including a 120km pipeline, no o� shore platforms, sub-zero seabed conditions, and

Subsea metering meets challengesthe need for subsea multiphase meters to fi t into the existing subsea control module.

Here, Emerson deployed Roxar Subsea Wetgas Meters for daily water produc-tion monitoring and gas measurement. The meter’s compact design and extreme water detection sensitivity (a detection accuracy of nine gallons of water an hour in a 100MM cu ft/d gas well) have been critical to the fi eld’s development concept and daily monitoring.

Emerson is rolling out a number of new developments to its subsea metering capabilities this year. This includes new technology platforms for more stable and accurate measurements; a salin-ity measurement system that enables absolute measurements of the salinity of produced water; and a new and more robust gamma densitometer system, that improves measurement performance and enables true redundancy. The latest Roxar subsea meter will be more compact than its predecessor, allowing it to be installed on individual wells and in previously inac-cessible locations.

Current trends in subsea production are driving major changes in subsea fi eld instrumentation. Subsea meters are meeting those challenges. •

Roxar subsea metering equipment undergoing a technical inspection.

Subsea cluster attracts Huisman Norway’s subsea cluster attracted

investment from Dutch drilling, lifting and subsea fi rm Huisman.

The fi rm has launched a new business, Huisman Norge AS, based in Bergen, to cover the Norwegian Continental Shelf.

The company will be o� ering pipe lay-ing, for subsea developments, cranes, for platforms, vessels, rigs, drilling solutions, well intervention solutions, and plugging and abandonment.

Regional director Geir Bjørkeli says: “Huisman has seen the large growth in

the subsea industry in recent years, with operators looking to increase recovery rates from subsea fi elds through well intervention, slim hole drilling, and inspection maintenance and repair, all of which will require technology we can deliver.

“We believe technology trends in coming years will be new and cost-e� ective solutions for subsea well maintenance, and cost-e� ective solu-tions for extended reach drilling at the

existing subsea infrastructure.

“Within the plug-ging and abandon-

ment area, new, smart and cost-e� ective

solutions are also required.”For Huisman Norge, 2014 will

see the fi rm grow its sta� ng to an esti-mated 5-10 people by the end of the year.

Huisman’s production is divided between its facilities in The Netherlands, China, and the Czech Republic. A new production facility in Brazil should be operational in 2014. Additional sales, engineering, and service support o� ces are in Australia, Brazil, Norway, Slovakia, Singapore, and the US. •

Jan Atle Andresen, is business development

manager-drilling, Huisman Norge AS

Huisman has been working on arctic drilling solutions.

NCE.indd 26 1/20/14 8:19 PM

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Page 43: Asian Oil and Gas-January-February 2014

geoilandgas.com

Integrated subsea systems for enhanced recovery

Comprehensive lifecycle support• Installation & commissioning• Operations & maintenance• Intervention & enhancement• Life-of-fi eld management• Remote monitoring & optimization

Equipment and integrated systems• Subsea trees• Subsea controls• Manifolds & connection systems• Subsea power & processing• Subsea wellhead systems• Specialty connectors & pipe• Floating production systems• Wellstream fl exible pipe

Our customers get higher recovery rates and longer well life no matter how extreme the conditions or confi guration challenges. From new fi eld design and installation to mature fi eld intervention and enhancement, GE Oil & Gas has all the equipment, technology and expertise needed to safely and reliably maximize long-term resource value and overall effi ciency.

Whether it’s advanced maintenance, upgrades or new technology injections, everything we do is aimed at delivering added value — and we have proven capabilities in doing so.

GE Works.

GE_SS_OE_Recovery-011714.indd 1 14-01-17 4:01 PMNCE.indd 27 1/20/14 8:21 PM

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Page 44: Asian Oil and Gas-January-February 2014

World-class service engineers to maintain your subsea production and processing systemOnce your subsea production system is installed and fully operational, Aker Solutions offers subsea lifecycle services to continually fi ne-tune its performance and reliability because a smooth start-up and uninterrupted production keep operators ahead.

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Page 45: Asian Oil and Gas-January-February 2014

Contracts

Rendering of Wison’s Indian FRU

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AOG | January · February 2014 17aogdigital.com

Sparrows Group triple contract win Three recent contract wins have helped to boost the crane maintenance and operations services supplied by Sparrows in Asia Pacifi c. Deals with existing clients Total and Premier Oil as well as a winch refurbishment and maintenance contract with ExxonMobil ensured a strong fi nish to the year for the crane and o� shore lifting specialists.

Increasing well services activities have

led to an existing contract with Total being doubled to include the provision of a second modular EC-20 crane rental. The deal includes crane operators as well as onshore and o� shore support. A three-yr contract has been agreed with Premier Oil to cover crane maintenance and inspections on all Premier Oil Indonesia assets.

The work with ExxonMobil will see Sparrows provide inspection and refurbishment on the NSO platform in the Aceh province, Indonesia.

• HANDAL, SCOMI TO SUPPLY OFFSHORE EQUIPMENTMalaysian oilfi eld services company Scomi Oiltools, a subsidiary of Scomi Energy Services Bhd, has partnered with integrated offshore crane services provider and fabricator, Handal Re-sources Berhad for offshore equipment.

Scomi will supply a modular work-over rig, offshore pedestal cranes, and related operations, repair and mainte-nance services to oilfi elds in Africa and the Middle East.

Under the memorandum of under-standing signed, both parties will formalize working arrangements in relation to the proposed collaboration within the next six months.

• WISON WINS INDIAN FRU SUPPLY Wison Offshore & Marine will supply a barge-based fl oating LNG regasifi ca-tion unit (FRU), to be installed offshore India, for New Jersey-based Vessel

Gasifi cation Solutions (VGS). Under the agreement, Wison will be

responsible for the turnkey engineering, procurement, construction, installa-tion and commissioning of the unit and will lead the project from its Shanghai operational center with construction to be performed at Wison’s wholly-owned fabrication facility in Nantong, China.

The FRU, which will be owned by VGS, will consist of a newbuild, non-propelled barge equipped to perform regasifi cation and provide a maximum of 1000MMscf/d of natural gas.

• SCOMI SCORES PETRONAS CONTRACTSMalaysia’s Scomi confi rmed that it secured two three-year contracts from from Petronas Carigali Myanmar Inc. (PCMI) and Petronas Carigali (Hong Kong) Ltd. for drilling fl uids, solid con-trol, well bore clean-out, drilling waste management equipment, materials and

services. The contracts are worth RM90 mil-

lion (US$27.4 million), bringing Scomi’s oilfi eld services order book up to RM5.1 billion (US$1.5 billion). Scomi targets July 2014 to commence work with PCMI.

• EMAS GETS FPSO DECOM CONTRACTSingapore-based EMAS AMC Subsea Services division announced a new contract to decommission and tow an FPSO in Asia.

This contract is part of US$80 million in new subsea agreements.

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Page 46: Asian Oil and Gas-January-February 2014

Activity

GE expands Chinese businessGE announced it has spent US$250 million in new Chinese projects over the last six years. In 2013, GE’s Power Conversion business saw the opening of a new 10,000 sq m production plant in Shanghai that will employ nearly 300 people. GE is set to open an innovation center of excellence for the metals in-dustry in Wuhan this January. The fa-cility will focus on metals automation, including hot rolling mill, cold rolling mill and processing lines. “We are here in China, for China, for the long-term development of our company,” Joe Mastrangelo, GE’s Power Conversion business CEO said. “By working closely as a local technology driver, we build the systems and solutions that will con-tribute to the region, increasing output while using signifi cantly less energy. The potential for making energy ef-fi ciency gains in China and for Chinese companies is enormous, and our part-nership is only just beginning.”

Mitsubishi, Hitachi form JVMitsubishi Heavy Industries Ltd. (MHI) and Hitachi Ltd. agreed to collaborate on the distributed gas engine power generation systems business in China.

MHI will transfer to Hitachi 35% of its shareholding in Mitsubishi Heavy Industries Engine System (Shenzhen) Co. Ltd., which is wholly owned by the MHI Group in China. Mitsubishi Heavy Industries Engine System (Shenzhen) will then be renamed and converted into a joint venture company by yearend 2014. Plans call for the JV to be head-quartered in Shenzhen, with a branch in Shanghai, with about 60 employees. The JV will begin carrying out the distributed gas engine power generation system business through collaboration with Hitachi.

Inpex opens Singapore hubInpex Corp. subsidiary Inpex Trading Ltd. created INPEX Energy Trading Singapore Pte Ltd., and opened a base in Singapore for the purpose of enhancing its marketing activities and shipping coordination function for crude oil, condensate and LNG. In anticipation of further increased volumes of such entitlement by developing the Ichthys LNG Project, Prelude Project and other projects, INPEX has decided to set up a new offi ce in Singapore, one of the hubs for energy trading, to strengthen INPEX’s marketing activities in Asia where energy demand is expected to

grow, to make shipping operation more effi cient and to enhance the capabil-ity of information-gathering on energy market.

EV opens Perth baseUK-based downhole video technology specialist EV announced the opening of a new base in Perth. The company established its new Australian facility to aid local operations, as well as to provide a regional presence for projects in the area. Features include a custom-built storage area for EV equipment, an electronics maintenance area, lithium battery storage area, System Integra-tion Testing (SIT) area and designated meeting areas. Bradley Parker, EV Australasia manager said, “We have experienced an exceptionally high de-mand for our downhole video technol-ogy in Australia and surrounding areas in recent months following success-ful contracts with global operators in Australia, Papa New Guinea and New Zealand.” The Perth offi ce currently has three employees. EV, which splits its headquarters between Norwich and Aberdeen in the UK, has a team of around 90 employees. EV said it plans to introduce a drill pipe camera in the upcoming months.

AOG | January · February 201418 aogdigital.com

Jee sends subsea tutors to South KoreaJee Ltd. signed a MOA with KOSHIPA in November 2013 for the provision of its courses, due to begin in 2014. Under the agreement, Jee will send its UK-based tutors to South Korea to deliver its subsea courses to KOSHIPA’s member companies, which include Hyundai, Samsung and Daewoo. “Our tutors will be delivering training to strengthen KOSHIPA’s members’ subsea skills base, and we look forward to learning more about the processes and development needs of KOSHIPA and its member orga-nizations,” Jee’s head of courses, Jenny Matthew said. The vice chairman, Young Ju Suh (pictured right), represented KOSHIPA alongside Sangduk Bae and Dong-Hyuk Rhee to sign the agreement, which took place at Jee’s headquarters

in Tonbridge. In attendance on behalf of Jee were: founder and managing direc-tor, Trevor Jee; Jenny Matthew; business

development manager, Jamie Burrows; and head of technical excellence, Jona-than Franklin.

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Page 47: Asian Oil and Gas-January-February 2014

For conference information contact:Brion PalmerDirect: 713.874.2216Email: [email protected]

For Sponsorship information contact:John LaulettaDirect: 713.874.2220Email: [email protected]

“Optimizing Operations Through Automation”

From the organizer of:

Petroleum Exhibition & Conference of Mexico

e m e r g i n g

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THE OFFSHOREAUTOMATION

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Page 48: Asian Oil and Gas-January-February 2014

Spotlight

Asia Pacific-focused, North Sea-based READ Cased Hole appointed Roy Martin chief executive officer. Martin will be tasked with expand-

ing the firm’s global reach into the Middle East and Asia Pacific. Martin’s career began in the North Sea in the early 1980s. He holds a degree in Mechanical Engineering from Auckland University in New Zealand. Martin went on to gain extensive experience throughout Africa, the Middle East and the Asia Pacific region. Investment to support growth plans from a consortium led by venture capital firm Energy Ventures and including Viking Energy is set to accelerate READ’s expansion into the international oil and gas arena.

Wood Group Mustang named John Etherington general manager, Malaysia, where he will lead operations and strategic development in the

Asia Pacific region. Based in Kuala Lumpur, Etherington will focus on an expanding Wood Group Mustang’s presence in the offshore, onshore, chemicals, oil sands, process plants, industrial, and automation and control

markets. Etherington joins Wood Group Mustang after 19 years with WorleyParsons, most recently serving as the company’s chief operations officer for its joint venture in Kuala Lumpur, where he has resided for the past 16 years. He holds a BS in instru-mentation and control engineering from the University of Teesside in the UK, and is a chartered engineer with the Institute of Electrical Engineers in the UK.

ASCO Group chose Jason Howe as general manager Northern Australia for its local subsid-iary ASCO Australasia. Howe,

based in Perth, will have a major role in the running of the new Darwin Marine Supply Base. ASCO Australasia is a participant in an innovative public-private partnership with the Northern Territory Government in the creation of the Darwin Marine Supply Base and has a 20-year management contract to run the dedicated oil and gas port at East Arm Wharf. Howe comes to ASCO from Mermaid Marine Australia Ltd., having served as the supply base manager in Dampier, Western Australia. He has more than 12 years of experience in supply base, HR and safety management, including more than six years with Mermaid Marine.

Petrofac announced that Andy Inglis will step down as chief executive of its Integrated Energy Services business in February. Inglis plans to join Dallas-

based exploration firm Kosmos Energy as its CEO and chairman, effective March 1. Rob Jewkes, currently

managing director of developments for IES, will take over as chief operating officer of Petrofac’s IES business. Inglis joined Petrofac in January 2011, after

30 years with BP, most recently as CEO of the British supermajor’s exploration and production business. Inglis was an executive director on the BP board between 2007 and 2010. From 2004 to 2007, he was BP executive vice president and deputy chief executive of E&P, with responsibility for BP’s growth areas, including Azerbaijan, Angola, Algeria, Gulf of Mexico, Egypt, Trinidad, and the Asia-Pacific region. He is a former non-executive director of BAE Systems plc and TNK-BP Ltd. Inglis holds a master’s in Engineering from Pembroke College, Cambridge University. He is a Chartered Mechanical Engineer, a fellow of the Institution of Mechanical Engineers, and a fellow of the Royal Academy of Engineering.

Power and automation technology group ABB named Chunyuan Gu head of its opera-tions in China and North Asia, effective January. Gu replaces Claudio Facchin, who was appointed executive committee member for the Power Systems division. Gu joined ABB in 1989, and spent time within ABB’s businesses in Europe and Asia. In 2006, ABB picked to lead its global robotics R&D center in Shanghai. In 2012, he was appointed head of the Discrete Automation and Motion division in North Asia. Gu holds an engineering degree from Shanghai JiaoTong University in China, and a PhD in Engineering from the Royal Institute of Technology in Stockholm, Sweden. He worked as a research fellow at the Royal Institute of Technology before joining ABB. Gu is fluent in Swedish, English as well as Mandarin Chinese.

AOG | January · February 201420 aogdigital.com

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Page 49: Asian Oil and Gas-January-February 2014

• Industry News, Trends & Forecasts• New Technology & Advancements: • Engineering Data & Analysis • Case Studies & Best Practices • Field Trial Progress Reports • Emerging Technologies • Technical Innovations• Worldwide Coverage: • Field Development Reports • Regional Updates

Every month, OE (Offshore Engineer) provides readers with theinformational tools needed to successfully address the complexitiesof offshore oil and gas field development.

For more up-to-the-minute offshore oil and gas news, live presentationsand exclusive articles, follow us on:

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Page 50: Asian Oil and Gas-January-February 2014

Solutions

Tracerco launches new subsea technology Tracerco will introduce its new subsea CT scanner, Discovery, at the Austral-asian Oil and Gas Exhibition in Perth in February.

Delegates will view footage of Discov-ery in action and its ability to provide a 360°, high-resolution scan of the condi-tion of complex piping systems.

Discovery has the ability to inspect a range of different, unpiggable piping systems, including pipe-in-pipe and pipe bundles, without the need to remove pipe coatings and insulation or interrupt production. 

Tracerco’s technology was created in cooperation with Statoil to develop detec-tion technology with the primary goal of use in fl ow assurance applications.www.tracerco.com

cessfully passed the factory accep-tance test carried out at South Korea’s

Doosan Engine Co. Ltd. factory, where the engines are being produced under license. By passing the test, the engine fulfi lls the design criteria for perfor-mance and functioning, and has been accepted by the customer and the Lloyd’s Register of Shipping clas-sifi cation society.

The Wärtsilä X72 features the company’s electronical-ly time-controlled common-rail technology. Flexible fuel

Wärtsilä announced that its Wärtsilä X72 mid-bore, low-speed engine suc-

New Wärtsilä X72 engine passes factory acceptance test

Allspeeds nominates ROV panel for innovation awardUK-based hydraulic equipment and tools producer Allspeeds Ltd. nominat-ed the Webtool HP690 intensifi er panel for the Subsea UK Innovation for Safety Award.

The HP690 intensifi er panel does not allow high-pressure fl uid to be locked in during deepwater operations, even in the case of ROV failure. Users are not required to manually reverse the pressure to ensure safety within the hydraulic system.

Input pressure automatically compen-sates for depth through the ROV’s own HPU; as the ROV surfaces, the high-pres-sure side of the circuit also adjusts. The

Saab will send its third Seaeye Tiger ROV to Singapore’s Seascape Surveys, a

subsidiary of Mermaid Maritime.Seascape Surveys will deploy the

observation and inspection vehicle to it operations in Indonesia, where it will digitally inspect subsea jackets, platforms and other structures. It will be working on the long-term charter new-build Dy-namic Positioning vessel Resolution.

The Tiger is able to maneuver inside structures and cope with strong currents and harsh conditions. It has a depth rat-ing of 1000m. Sonars, cameras and tools can be added as needed.www.seaeye.com

Saab sends third tiger to Indonesia

injection and exhaust valve operation o� er fuel consumption reductions with correspondingly lower levels of exhaust emissions. The system also permits stable running speeds down to 12% of the nominal speed, smokeless operation, and improved control of emissions. The engine has been designed to provide exceptional reliability, extended key component life, and has been optimized for lower engine revolutions.

Wärtsilä X72 is suited to a broad range of ship types, including Cape-size bulk carriers, Suezmax tankers, and Feeder/Panamax container ships. www.wartsila.com

panel was designed with a cross-drilled manifold-style body, so there are fewer hydraulic fi ttings (and potential leak paths). Safety screens were installed on the pressure intensifi er ports to prevent contamination seizing the intensifi er. www.allspeeds.co.uk

AOG | January · February 201422 aogdigital.com

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OILONLINEAdvancing the Industry

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AOG | January · February 201424 aogdigital.com

Numerology

The year that China’s oil production is forecast to

hit 4.7MMb/d. See page 14.2035

The amount of LNG Japan imported in 2013, up 2% from 2012. (Source: Ministry of Finance Japan)

87.49MM tonnes

22,525ft

First expected LNG shipments leave BP’s US$12 billion Tangguh LNG facility (pictured) in Indonesia. (Source: BP).

85%of worldwide contracts for deepwater drilling, engineering, procurement, construction, installation, commissioning will come from Malaysia, Indonesia, China, India, and Australia. (Source: OTC Asia).

The deepest installation of Weatherford’s ZoneSelect system. See page 12.

2867m The total drilled depth of the Cua Lo-1 well o�

Vietnam. See page 4.

The expected daily production peak for CNOOC’s Golden Eagle development. See page 4.70,000 boe

The amount GE spent on new Chinese projects since 2007. See page 18.US$250 million

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emergingfpso.com

Emerging FPSO brings together industry experts from around the globe with real-world FPSO experience. Join these thought-leaders as they discuss the latest technological developments and provide case histories on new techniques.

SAVE THE DATE

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Interested in speaking? Contact: Jennifer Granda Event ManagerDirect: 713.874.2202 | [email protected]

Interested in sponsorship and exhibiting?Contact: John Lauletta OE Events SalesDirect: 713.874.2220Fax: [email protected]

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START READINGTODAY!

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