happy holidays from go gulf

Happy Holidays from Go Gulf

Nov / Dec 2019

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Cover Courtesy of BlueFingrp.com

Stories from Roger Hooper and Beyond 6

Trinidad Awards Maersk Developer 8Two Well Contract

Go News Network 9Transocean Deploys First Hybrid RigBorr Drilling Awarded Contracts by PemexADNOC and Total’s Drone Seismic Acquisition SystemBHP Discovery near Trinidad and TobagoNOIA Appoints Erik Milito New PresidentNOIA’s Nicolette Nye Comments on Workplace Safety

Cheniere Energy Donation 16SOWELA Technical CC in Lake Charles

Pirates Attack Oil Industry 18Average 16 Attacks per Month Offshore Mexico

Majors Global Selling Spree 22 Could Total $ 27 Billion

ABB Subsea Power Supply 24A Game Changer for Electrical Subsea Power

World’s Largest Floating Wind Turbine 25Offshore Portugal

eelReel Technology 26By Rob Bain, VP Flow Solutions, BlueFin

Floater Report 28Bassoe’s Latest Worldwide Analysis

BSEE Safety Alerts 30No. 366 Dangerous Levels Of H2S Detected No. 367 Saturated Glycol Handling Leads to FireNo. 368 Inadvertent Opening of Valve Under Pressure No. 369 Non-OEM Parts Were Significant Causal Factors No. 370 Overcharged Battery in Non-Ventilated Box

BSEE Safety Bulletins 32No. 021 Multiple Arc Flash Incidents

Flowline 34

Go Cards 36

Environmental News 38

BlueFin’s eelReel TechnologySee Page 26

World’s Largest Floating Wind TurbineSee Page 25

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HOUMA, LA – New research released recently from the Bureau of Safety and Environmental Enforcement andBureau of Ocean Energy Management indicates the need to define the Gulf of Mexico Shallow Water Province(water depth less than 200 meters) as a distinct province to avoid stranding more than $20 billion of the Nation’s oiland natural gas resources.

The Shallow Water Province is a historically energy-rich area that now primarily serves as a natural gasprovince, accounting for 33 percent of the Gulf’s natural gas production and just over 10 percent of its oil produc-tion. Production and infrastructure investment used to be substantially higher in the Shallow Water Province, butover the last 20 years, development has moved onshore or to deepwater operations. The number of wells drilled hasdecreased 89 percent over the last 10 years, and approximately 100 platforms a year are being removed with no newplatforms being installed. If this trend continues, the lack of development will potentially strand 179 million barrelsof oil and 4,567 billion cubic feet of natural gas that have an estimated worth of $20 billion.

The joint research report, “Gulf of Mexico Data and Analysis/ Leasing, Drilling and Production, Gulf of MexicoShallow Water Potential Stranded Assets,” which supports President Trump’s Executive Orders 13795, 13868 and13783 of promoting offshore energy infrastructure, independence and economic growth, evaluates the contributingfactors for this decline and recommends using an updated discount rate for the two distinct provinces.

“This research provides critical information that energy development in the Gulf of Mexico should not be man-aged with a ‘one size fits all’ approach in how we avoid stranding our nation’s valuable energy resources,” saidBSEE Director Scott Angelle. “Although reversing the natural decline may not be entirely possible, promoting therecovery of the remaining oil and natural gas resources in the Gulf of Mexico Shallow Water Province, while pro-tecting the interests of the American public, is an obligation this administration is taking action on.”

“Once the infrastructure is removed, we will not be able to recover these resources,” Angelle continued. “Thenation is essentially on a ‘shot clock’ to make sure that does not happen.”

“BOEM estimates that $20 billion in oil and natural gas resources could be stranded in the Gulf of MexicoShallow Water Province if the current trends continue,” said BOEM Acting Director Walter Cruickshank. “To ensuremaximum resource recovery, BSEE and BOEM are working together to encourage increased activity consistent withthe resource conservation policy established by Congress under Outer Continental Shelf Lands Act.”

The research has laid the groundwork for two actions that encourage increased activity in the province. Theyinclude: (1) BOEM’s publication of updated discount rates for the two distinct provinces of the Gulf of Mexico;namely, the Shallow Water Province and the Deepwater Province (the discount rate for the Deepwater Province alsoapplies to all other OCS areas that will be used for BSEE’s special case royalty relief evaluations); and (2) verifica-tion that BSEE has authority to consider applications for royalty relief on a “per project” basis. These projectscan include exploratory wells in order to promote development of discovered resources.

The updated discounted rate for the Shallow Water Province willapply to special case royalty relief applications and will only be appli-cable for new wells and production in the region.

Since 1947, 47,765 wells have been drilled in Gulf of MexicoShallow Water Province, but over the past 10 years (2008-2018), thenumber of wells drilled in the province have decreased 89 percent. Thenumber of platforms installed have also followed similar trend lines as6,991 platforms have been installed since 1947, while 5,102 platformshave been removed. Production in the Shallow Water Province hasmoved almost entirely to natural gas, but both oil and natural gas pro-duction is down from historic highs. Since 1998, oil production hasdecreased 77 percent, and natural gas production has decreased 92 per-cent.

Revenues from oil and gas production in the Gulf of Mexico go, inpart, back to the coastal states that support these operations. TheDepartment of the Interior disbursed $214.9 million in FY 2018 energyrevenues to the four Gulf oil and natural gas producing states –Alabama, Louisiana, Mississippi and Texas – and their coastal politicalsubdivisions. This was an increase of $26.95 million or 14.3 percent incomparison to FY 2017. The disbursements paid to the states supportcoastal conservation and restoration projects, hurricane protection pro-grams, and activities to implement marine, coastal, or conservationmanagement plans.

is published every other month by Hooper Group

PO Box 86003 Baton Rouge, LA 70879 [email protected]

Roger B. Hooper Founder and Publisher

Go Gulf Magazine is sent FREE toindividuals in the Gas and Oil Industry. © Copyright 2019 All Rights Reserved.

Established 1999

We welcome comments, artwork and photographs,but please call for approval. Hooper Group assumesno responsibility for the validity of claims in connectionwith information appearing in this publication.Opinions expressed herein are not necessarily thoseof the publisher, government organizations or adver-tisers. Although the publisher makes every effort toensure all information published is accurate, The pub-lisher is not responsible for inaccuracies, mistakes,misprints or typographical errors. The publisherreserves the right to refuse any advertising.

New Research Supports Revised Strategy to Avoid Stranding Billions of the Nation’s Oil and

Natural Gas Resources in Gulf of Mexico Shallow Water Province

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Go Gulf Magazine

Rig Managers: Ask about the Special GO GULF Discount

Maersk Drilling awarded two-well contract for

Maersk Developer offshore Trinidad

Maersk Drilling has entered a contract with BG

International Ltd., a subsidiary of Shell, for work off-

shore Trinidad and Tobago on a two-well development

project for the semi-submersible rig Mærsk Developer.

The contract has an estimated duration of 171 days and is

expected to commence in Q1 2020. The value of the firm

contract is approximately $ 39 million, including a

mobilisation fee. The contract contains five additional

one-well options.

The Maersk Developer is a DSS-21 column-stabi-

lized dynamically positioned semi-submersible rig, able

to operate in water depths up to 10,000ft. It is currently

operating offshore Mexico.

“We are very pleased to be headed back to Trinidad

to build on the successful work Maersk Developer previ-

ously performed for Shell there,” says Morten Kelstrup,

COO of Maersk Drilling.

Maersk Drilling (CSE:DRLCO) owns and operates a

fleet of 23 offshore rigs specializing in harsh environ-

ment and deepwater drilling operations. With more than

45 years of experience operating in the most challenging

environments Maersk Drilling provides safe, efficient,

and reliable drilling services to oil and gas companies

around the world. Headquartered in Denmark, Maersk

Drilling employs 2,850 people.

Transocean Ltd. (NYSE: RIG) announced that it

has successfully deployed the world’s first hybrid energy

storage system aboard a floating drilling unit. The sys-

tem is now operational on the Transocean Spitsbergen,

engaged in drilling operations at the Snorre field in

Norway.

Transocean’s patented hybrid power technology,

developed in partnership with Aspin Kemp and

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Associates, reduces fuel consumption and increases a

dynamically positioned rig’s station-keeping reliability

by capturing energy generated during normal rig opera-

tions that would otherwise be wasted, and storing it in

batteries. This energy is then used to power the rig’s

thrusters. This important operational and safety enhance-

ment targets a 14% reduction in fuel use during normal

operations, leading to a significant reduction in NOx and

CO2 emissions.

Transocean’s investment is funded in part through

fuel saving incentives in its contract with Equinor and by

the Norwegian NOx Fund.

“This first of its kind hybrid power upgrade will fur-

ther enhance the reliability of our operations, while

simultaneously reducing fuel consumption, operating

costs and our environmental footprint,” said Jeremy

Thigpen, President and CEO. “We are pleased and proud

to work alongside Equinor to jointly identify and imple-

ment more efficient and sustainable technology to deliver

high-value wells to the industry.”

Borr Drilling Limited (NYSE: BORR) has issued

an updated fleet status report. The report includes news

about five new contracts and extensions since the previ-

ous fleet status report in August 2019, comprising two

newbuilds, one warm stacked rig and extensions of two

active rigs. This is expected to add approximately 55

months and approximately $151 million of additional

backlog revenue since the previous fleet status report in

August 2019. In addition, the previously reported LOA

for Prospector 1 has been converted into a firm contract.

Two of the announced contracts are with Pemex and

will be based on the same integrated services structure

that of the three other rigs the Company has contracted

with Pemex.

With the activations of two additional newbuild units

and the reactivation of a warm stacked unit, the Company

has increased the number of contracted and committed

rigs to 18. In addition, the company has commenced acti-

vation of an additional newbuild rig from Keppel as

result of advanced negotiations for a contract with

expected start-up in January 2020.

The Abu Dhabi National Oil Company (ADNOC)

and Total announce their collaboration to deploy the

world’s first automated seismic acquisition system in

Abu Dhabi. This pilot project, performed with Total’s

Multiphysics Exploration Technology Integrated System

(METIS

®

), uses autonomous drones and a ground vehicle

to drop off and retrieve seismic sensors without human

intervention, therefore at a lower cost. It will be deployed

throughout the emirate of Abu Dhabi, to contribute to

onshore exploration and appraisal campaigns — a first in

the region.

Go Gulf Magazine


Go Gulf Magazine

Following successful trials of METIS conducted by

Total in 2017 in Papua New Guinea, this new pilot proj-

ect will be undertaken by ADNOC Onshore to test the

versatility and upscaling ability of the system in a 36 sq.

km desert environment. The seismic sensors will be

dropped by six autonomous aerial drones and later be

retrieved by an unmanned ground vehicle — whereas

they are conventionally manually deployed and recov-

ered by ground based teams.

“Total is focusing on innovation in seismic acquisi-

tion to minimize surface impact of petroleum activities

and improve the quality of sub-surface images, while

increasing our overall operational efficiency. We are

proud to have this opportunity to collaborate once again

with ADNOC to share advanced technological knowhow

and expertise,” stated Dominique Janodet, Vice President

R&D of Total Exploration & Production. “In addition,

METIS is a major technology to reduce the environmen-

tal footprint of our onshore exploration and appraisal

campaigns, which is completely in line with our environ-

mental commitments and our ambition to be the respon-

sible energy major.”

“METIS is a pioneering automated technology with

the potential to conduct seismic surveys in harsh environ-

ments, such as the desert, which are tough on people and

equipment. This collaboration demonstrates our commit-

ment to using ground-breaking technologies, throughout

our operations, to unlock the opportunities of the 4th

Advertise in

Go Gulf Magazine

contact Roger

[email protected]


ConfinedSpaceSpecialistsThe most reliable fleet of

specialized environmental

cleaning equipment in the Gulf

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industrial age” said Alan Nelson, Chief Technology

Officer at ADNOC.

“The ultimate purpose of this collaboration is to be

able to jointly develop a safer, faster, more efficient and

cost effective acquisition system to acquire 3D and 4D

high resolution seismic images of the subsurface, which

can be processed in real-time to build a clearer under-

standing of the subsurface, lowering geoscience and

drilling uncertainties and optimizing field production”

added Khadija Al Daghar, Vice President Research and

Technology Development at ADNOC.

ADNOC and Total collaborates across the full oil &

gas value chain, from offshore and onshore exploration,

development and production, to processing, products and

shipping. In March 2018, Total was awarded a 20% inter-

est in the offshore Umm Shaif and Nasr concession, a 5%

interest in the Lower Zakum concession and, more

recently, a 40% stake in Abu Dhabi’s first

Unconventional Gas Concession.

Total is a major energy player that produces and mar-

kets fuels, natural gas and low-carbon electricity. Active

in more than 130 countries, their ambition is to become

the responsible energy major.

BHP has made a 3.5 tril lion cu bic feet dis cov ery in

the north ern deep wa ter area of Trinidad and To ba go.

This an nounce ment was made at an in vestor up date

by BHP Pres i dent Op er a tions Pe tro le um, Geral dine Slat -

tery.

Slat tery said: “In the deep wa ter, in our North ern li -

cens es, we have de clared 3.5tcf gross dis cov ery, with fur -

ther po ten tial up side. Whilst de tailed de vel op ment stud -

ies are just get ting start ed, a hub ap pears best suit ed to

this play.”

The North ern li cense area in cludes the Tuk-1, Bele-

1, Boom-1, Hi-Hat-1 and Bon gos-2 wells.

This is good news for the coun try which has suf fered

from nat ur al gas short ages.

Slater ry added that BHP has op er at ed in T&T for

near ly 20 years in the shal low-wa ter An gos tu ra field. She

not ed: “Ear li er this year we sanc tioned the Ru by Brown -

field project, which was un der pinned by con tin ued ap -

praisal and seis mic imag ing in prox im i ty to the orig i nal

de vel op ment.” She said that as the op er a tor, with high

eq ui ty in ter est, BHP al so has the scope to op ti mize the

de vel op ment plan ning and the de vel op ment con cept.

Slat tery stat ed: “Sub ject to be ing com pet i tive for cap i tal,

we see an FID (Fi nal In vest ment De ci sion) from 2022.”

Slat tery said that the LNG con cep tu al de vel op ment

is in the ear ly stages. She con tin ued: “In terms of the re -

source ques tion, there is suf fi cient re source in what we

Go Gulf Magazine


have dis cov ered to day and booked in our con tin gent re -

source.”

Slat tery al so ar gued that there is “up side be yond that,

from one of our most re cent wells, which isn’t ac tu al ly

cap tured in that, and there’s fur ther ap praisal that we

need to do.” How ev er, Slat tery not ed that for “the con tin -

gent re source that we have re port ed, that does sup port the

de vel op ment.”

In terms of ac cess to the LNG fa cil i ty, Slat tery said

that BHP in tends to ac cess the LNG mar ket and the do -

mes tic mar ket. She al so in di cat ed that the do mes tic mar -

ket in T&T is a strong mar ket with am mo nia and

methanol de mand in creas ing.

Veteran energy industry association executive Erik

Milito has been named as the new president of the

National Ocean Industries Association.

“Erik is a strong leader and an effective communica-

tor, qualities that make him a great fit for NOIA President

and will serve our membership well. I am confident in his

ability to inspire the NOIA membership and convey to

the public the important role that offshore energy plays in

America and beyond,” said NOIA Chairman Richard

Clark.

Milito has extensive experience in implementing

strategic outreach and public relations platforms for high

profile issues on behalf of the energy industry. He is a

seasoned spokesperson and lobbyist, testifying before

Congress on key energy issues on numerous occasions.

“It is a privilege for me to have the opportunity to

become part of such a great organization and industry.

Day after day, the men and women of America’s offshore

oil, natural gas and wind industries produce the energy

that drives our economy and lifts society, and I couldn’t

be prouder to join the NOIA team,” said Milito.

Milito comes to NOIA from the American Petroleum

Institute (API), where he served for the past 17 years,

most recently as Vice President, Upstream and Industry

Operations, covering regulatory, legislative, and techni-

cal matters related to U.S. oil and natural gas exploration

and production. He previously served as managing coun-

sel at API, covering a wide range of legal issues. From

2000 to 2002, Milito served as a career attorney in the

Solicitor’s Office of the U.S. Department of the Interior.

He served on active duty in the U.S. Army as a judge

advocate from 1995 to 2000, and in the U.S. Army

Reserve from 2000-2004, before resigning at the rank of

Major. Milito holds a Juris Doctor from Marquette

University Law School, and a Bachelor of Business

Administration from the University of Notre Dame.

Former NOIA President Randall Luthi served for

nearly a decade before departing in July of 2019 to be the

Chief Energy Advisor to the Governor of Wyoming. “I

applaud the NOIA Executive Committee for selecting

Erik as my successor. Being President of NOIA is a fan-

tastic job. I have no doubt that Erik will excel at repre-

senting the best interests of the NOIA membership and

the offshore energy industry,” said Luthi.

National Ocean Industries Association Vice

President of Communications and Member Development

Nicolette Nye issued the following statement welcoming

DOI’s oversight of workplace safety for renewable ener-

gy facilities on the outer continental shelf:

“NOIA applauds the Department of the Interior

(DOI) for clarifying it’s authority as the primary regula-

tor and enforcement agency for worker safety and health

on outer continental shelf renewable energy facilities. We

encourage DOI to continue to move forward on develop-

ing safety regulations for the rapidly emerging U.S. off-

shore wind industry. With 15 active offshore wind leases

and several offshore wind projects in various stages of

development, it is crucial that safety regulations be

developed and finalized by the time construction begins.

Safety remains the offshore energy industry’s top priority

and we look forward to working with DOI to establish a

world class safety regime for U.S. offshore wind.

“With $70 billion in capital investments projected

by 2030, 160,000 domestic jobs projected by 2050, and

$473 million already generated to the U.S. Treasury from

lease sales to date, offshore wind is a vital part of

America’s all-of-the-above energy strategy and provides

energy security and economic growth for our nation.”

Go Gulf Magazine


Officials from SOWELA Technical Community

College have announced a $161,000 donation from

Houston-based Cheniere Energy and the continuation of

a partnership in the form of an apprenticeship program.

The donation will be used to complete a working refrig-

eration skid on SOWELA’s campus that will be used for

hands-on training purposes. The additional donation fol-

lows Cheniere’s donation in November 2018 of

$250,000.

The continuation of the apprenticeship program will

begin in January 2020 and eligible students will take

what they have learned in SOWELA’s classrooms and

apply it to their jobs at Cheniere Energy’s Sabine Pass

Terminal. Students accepted into the apprenticeship pro-

gram will be involved in the day-to-day processing and

instrumentation work at the facility. The apprenticeship

will accept 16 students for Process Technology and six

students for Instrumentation Technology.

“The partnership between SOWELA and Cheniere

is an excellent example of how business and industry can

work together to build a workforce and strengthen the

economy for Southwest Louisiana. Cheniere has devel-

oped a unique and customized apprenticeship program

that helps strengthen the student’s classroom experience

while providing them an opportunity to gain valuable on-

the-job training with the possibility of future employ-

ment,” said SOWELA Chancellor Dr. Neil Aspinwall.

“Cheniere realizes the critical importance of a skilled and

trained workforce and has committed the resources nec-

essary to help SOWELA continue to achieve its mission

of being a major workforce developer.”

Cheniere’s donation to SOWELA is part of its ongo-

ing commitment to supporting STEM initiatives. Since

2017, Cheniere has invested nearly $500,000 towards

programs supporting SOWELA activities.

“Southwest Louisiana is set to experience a boom in

employment from current and proposed LNG facilities

and we are proud to continue our partnership with SOW-

ELA to help create a pathway into this exciting new

industry,” said Jane Uebe, Director of Training at

Cheniere Energy.

SOWELA Technical Community College provides

traditional, distance, and lifelong learning experiences

and awards associate degrees, technical diplomas, and

certificates. The College empowers learners in career and

technical education and enables transfer students to pur-

sue a four-year degree so all learners excel as globally

competitive citizens. The College has been educating the

region’s workforce for 80 years. For more information

visit www.sowela.edu.

Go Gulf Magazine

email:[email protected] www.haggard-muddog.com

Cheniere Energy Announces Additional $161,000 Donation and Continuation of

Apprenticeship Program at SOWELA Technical Community College


Go Gulf Magazine

Pirate attacks in the southern part of the Gulf of

Mexico have increased fourfold in just two years, trigger-

ing calls for the Mexican Navy to bolster its presence in

the area.

Between January and September this year, there was

an average of 16 attacks per month on ships off the coast

of Ciudad del Carmen, Campeche, and Dos Bocas,

Tabasco, according to the International Transport

Workers’ Federation (ITF).

In 2017, there was an average of four pirate attacks

per month while last year the monthly average increased

to 12.

Merchant marine data shows that there were 167

attacks on ships and oil platforms in the Gulf of Mexico

between January and September but not a single arrest

was reported in the period.

Pirates typically steal whatever they can get their

hands on including the belongings of crew members as

well as ships’ communication and navigation systems,

which are later sold on the black market.

The increase in pirate attacks poses a risk to energy

sector investments, warned the Ciudad del Carmen pres-

ident of Mexico’s Business Coordinating Council.

“This could cause future foreign investments in the

energy sector to be canceled because entrepreneurs look

for peaceful areas where their resources are protected,”

Alejandro Fuentes Alvarado said.

ITF Latin America inspector Enrique Lozano Díaz

told the Mexico daily newspaper, Reforma, that pirates

have also attacked Pemex oil platforms in the Cantarell

field, located 85 kilometers off the coast of Ciudad del

Carmen.

“Pirates travel in two or more boats with powerful

outboard motors,” he said.

“[There are] up to seven individuals in each boat,”

Lozano added, explaining that the pirates make specific

plans for each ship or oil platform they intend to attack.

Most recently, pirates attacked an Italian ship that

provides services to oil drilling platforms in the Gulf

of Mexico.

Two crew members were injured in the November

12, 2019 attack, which came eight days after a group of

armed pirates robbed workers on the Independencia oil

platform in the Gulf of Mexico. The attack triggered an

international alert for the region, Lozano said.

“In addition to weapons, pirates use hooks to climb

onto ships and platforms. They always operate in the

early morning, they know that crew members don’t use

firearms due to international regulations so they board

with complete safety,” he said.

“The criminals steal . . . self-contained breathing

apparatuses and expensive equipment as well as copper

and pipes.”

In light of the increasing number of attacks, Ciudad

del Carmen business owners have urged the Mexican

Navy to increase patrols in the southern part of the Gulf

of Mexico.

Pirates Have Attacked 16 Vessels a Month this Year

in the Gulf of Mexico

And Not a Single Arrest Has Been Made

Will the USGulf of Mexico

gas and oilindustry be

next?


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Go Gulf Magazine

Majors’ global selling spree could fetch $27 billion

Highlights from Rystad Energy’s latest report:ExxonMobil plans to divest assets worth $15 billion by 2021 as it focuses on developing oilfields in Guyana and

the US Permian Basin, as well as gas projects in Mozambique and the US Gulf of Mexico. Chevron needs to raise capital for projects such as Tengiz in Kazakhstan, Contract 3 in Thailand, and its US shale

positions in the Permian Basin. In addition, the company is considering a sale of assets in Nigeria which could bevalued at up to $2 billion.

BP is looking to offload some of the US shale assets that lie outside of its core areas in order to help fund lastyear’s $10.5 billion purchase of BHP’s North America subsidiary. The British player put seven asset packages on the

Global giants of the oil and gas industry – the so-called supermajors – are looking to sell assets that could fetcha total of $27.5 billion, according to Rystad Energy’s latest assessment.

These companies are actively shedding mature assets on a massive scale in a bid to finance higher-yieldinginvestments elsewhere, with the added benefit of pleasing shareholders who are calling for stricter capital discipline.

“The expected transactions mean some of the majors are poised to exit certain regions, giving regional playersand independents a chance to buy into key fields and help keep them profitable through production-life extensionsand new developments,” says Ranjan Saxena, an analyst on Rystad Energy’s upstream team.

Rystad Energy, the independent energy research and consulting firm headquartered in Norway with offices acrossthe globe, has taken a closer look at some of the main assets currently up for sale.

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market, headlined by the gas-rich San Juan Basin acreage on the Colorado-New Mexico border. A sale could fetchbetween $1.6 billion and $2 billion for all the packages combined.

Total plans to divest assets worth $5 billion by 2021. The company is seeking to sell one-third of its 16.8% stakein the giant Kashagan field in the Kazakh sector of the Caspian Sea, thought likely to attract offers of between $3.2billion and $4 billion.

Shell plans to divest assets worth $10 billion by 2021 and is reportedly looking to exit the Abadi LNG project inIndonesia, which could raise between $1 billion and $1.6 billion for the supermajor.

ConocoPhillips has placed its entire 234,000-acre asset in the emerging Austin Chalk play of LA on the market,about a year-and-a-half after the position was first unveiled. The valuation is expected to be below $1 billion.

Brazil’s Petrobras is on track to become the world’s largest oil producer among publicly listed companies by2030, based on Rystad Energy’s latest data and forecasts. Brazil’s biggest-ever oil auctions in November were gen-erally deemed to be disappointing, receiving muted interest from international exploration and production companies.

However, national oil company Petrobras could not have asked for a better outcome. The world’s fastest growingoil producer gained nearly full control of more than eight billion barrels of oil in the Buzios field, where a sixth floateris being planned. To develop these and other resources off the coast of the South American country, Brazil is set fora whopping $70 billion offshore capital investment spree between 2020 and 2025, solely on field development. Thisprogram will have a monumental effect on Petrobras.

"Petrobras can, in a matter of years, become the world’s largest oil producer among publicly listed companies.The significance is huge and symbolic," commented Aditya Ravi, vice president of Rystad Energy’s upstream team,specialized in E&P activities in Latin America. “We predict that Petrobras alone can boost its production numbers bymore than 1.3 million barrels per day over the next decade.”

During the course of 2019, Petrobras has evolved from fifth place to become the third largest oil producer, reach-ing output of around 2.2 million bpd in the third quarter. Rosneft and PetroChina top currently top the list of theworld’s largest public E&P companies.

Based on Rystad Energy’s latest forecasts, Petrobras could be poised to overtake PetroChina over the next fewmonths, and potentially dethrone the ruling Russian producer Rosneft over the next decade, thanks in no small partto its latest acquisitions. Brazil’s production could be pushed from 2.8 million bpd in 2019 average to over 5.5 millionbpd thanks to Petrobras’ potential peak output of almost 3.8 million bpd by 2030.

Brazilian officials recently indicated the country wishes to join OPEC, the oil cartel dominated by SaudiArabia and 13 other oil producing countries. Brazil’s current output would make it OPEC’s third-largest producer,behind Saudi Arabia and Iraq.

“Joining OPEC could cause a major disruption for Brazil, bringing the country into the spotlight with the poten-tial risk of having its wings clipped by the cartel just as production takes off,” Ravi cautioned.

This potential shift in ranking has been spurred on in the aftermath of the three Brazilian licensing rounds organ-ized over the past five weeks by the National Petroleum Agency (ANP), in which 45 blocks were on offer. With onlyone-third of the blocks receiving bids, the rounds raised concerns that Brazil lacks the luster that in the past ensuredactive and competitive bid rounds. In the wake of these rounds, the Brazilian Energy Minister remarked that the cur-rent legal and tendering structure could warrant a re-think, including a look at Petrobras’ pre-emptive rights on oilblocks. Others have voiced dismay over the steep signature bonuses.

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ABB’s pioneering subsea power distribution andconversion technology system is commercially viable,bringing ground breaking potential for cleaner, safer andmore sustainable offshore oil and gas production, follow-ing the completion of a 3,000-hour shallow water test.

For the first time worldwide, energy companies willbe able to access a reliable supply of up to 100megawatts of power, over distances up to 600 kilometersand down to 3,000 meters water depth, at pressures thatcould shatter a brick. This is all achievable with a singlecable with little or no maintenance for up to 30 years,making oil and gas production feasible in far out anddeep ocean environments.

The $100 million research, design and developmentJoint Industry Project (JIP) between ABB and Equinorwith its partners Total and Chevron was initiated in 2013.The validation of the shallow water test at a shelteredharbor in Vaasa, Finland, means the majority of theworld’s offshore hydrocarbon resources are now in reachfor electrification.

“This milestone marks an outstanding achievementand is the culmination point of an inspirational technolo-gy development achieved through tremendous dedica-tion, expertise and perseverance. It is the result of inten-sive collaboration by over 200 scientists and engineersfrom ABB, Equinor, Total and Chevron in a multi-year,joint effort,” said Dr. Peter Terwiesch, President ofABB’s Industrial Automation business.

By powering pumps and compressors on the seabed,closer to the reservoir, ABB’s subsea power distributionand conversion technology can significantly reducepower consumption. There is potential for substantialenergy savings, with reduced carbon emissions usingpower from shore. ABB’s subsea power technology canconnect to any power source, enabling future integrationswith renewable energy, such as wind and hydro power.

Based on a specific field development case, the newtechnology could offer CAPEX savings of more than$500 million, if eight consumers, such as pumps or com-pressors, are linked through a single cable over a distanceof 200 km from other infrastructure.

Having fewer people offshore will reduce risks andimprove overall safety. Against a backdrop of digitaliza-tion and increasing autonomy in offshore operations, newopportunities are also anticipated in the ocean ecosystem.

“Moving the entire oil and gas production facility tothe seabed is no longer a dream. Remotely operated,increasingly autonomous, subsea facilities powered bylower carbon energy are more likely to become a realityas we transition towards a new energy future,” said Dr.Terwiesch.

Previously, only the transmission cable and subseastep-down transformer were proven to operate underwa-ter. Today, ABB’s complete subsea power distributionand conversion system includes a step-down transformer,medium voltage variable speed drives and switchgear,control and low voltage power distribution, and powerelectronics and control systems. ABB’s flagship distrib-uted control system, ABB Ability™ System 800xA, con-trolled the rigorous testing.

To find out more about how ABB’s subsea technolo-gy can assist operators #dreamtheextreme for a more sus-tainable world, read our whitepaper athttps://forms.abb.com/form-29720/subsea-whitepaper.

ABB Industrial Automation ABB’s IndustrialAutomation business offers a broad range of products,systems and solutions for customers in the process andhybrid industries. These include industry-specific inte-grated automation, electrification and digital solutions,control technologies, software and lifecycle services, aswell as measurement and analytics, marine and tur-bocharging offerings. ABB’s Industrial Automation busi-ness is #2 in the market globally. With deep domainknowledge, experience and expertise, ABB IndustrialAutomation helps customers increase their competitive-ness, improve their return on investment and run safe,smart and sustainable operations.

ABB operates in more than 100 countries with about147,000 employees.

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ABB proves world-first subsea power technology system


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It is the first of three ABS-classed, SEMI Submersible Type units designed by Principle Power housing MHIVestas turbines that will make up for a total of 25 MWs of floating offshore wind power. This is continental Europe’sfirst larger scale floating wind farm, 20 kilometers off the coast of Viana do Castello, Portugal.

The project is developed by the Windplus consortium, which is jointly owned by EDP Renováveis, ENGIE,Repsol, and Principle Power Inc. The development is based on the same principles as the original Principle Powerdesigned concept, Windfloat 1, that was installed offshore Portugal in 2011.

“Principle Power is very pleased to work with ABS, once again, in the framework of the WindFloat Atlantic proj-ect, building on the successful collaboration of the WindFloat 1 prototype. WindFloat Atlantic represents a majormilestone for the floating offshore wind industry as it is the world’s first semi-submersible floating wind farm. Weare proud of having led the process of industry standard-setting from the early days, together with ABS, and we lookforward to taking the WindFloat technology to full commercialization around the world,” said Steven Barras, ChiefTechnical Officer at Principle Power.

Thanks to their floating foundations, floating offshore wind farms are not subject to the same depth restrictionsas fixed structures and can be at any depth. With the development of larger turbines above 10MWs and researchfocused on shallow water moorings, the floating technology may even be an alternative to traditional bottom- found-ed technologies in intermediate water depths in the future.

The largest floatingwind turbine in the world,

an 8.4-megawatt (MW)ABS-classed offshore

wind turbine, is about tobe installed.


INTRODUCTION

There are currently approx. 17,5071 miles of activepipelines in the Gulf of Mexico (GOM), many of whichhave been in place for 30-40 years and range in waterdepths from 8’ to 10,000’.

Throughout the production lifecycle of all subseapipelines, these arteries witness various flow assuranceissues. One of the main problems facing operators froma flow assurance perspective is severe deposition, such asparaffin, asphaltene, scale, and sand. Many of these solidcontents naturally occur in the well reservoir and becomeincreasingly problematic as they move upstream throughproduction infrastructure and witness extreme tempera-ture and pressure changes and interact with structuralcomponents such as carbon steel. As a result, these solidcontents impede flow throughput by reducing the internaldiameter of the pipeline’s available real estate. In someextreme cases pipelines have become fully blocked,causing significant loss of production and value to theiroperators and owners. In even more severe cases, prema-ture cessation of production (COP) has occurred due tounavailable and/or cost-effective methods to remediate.

The Bureau of Safety and EnvironmentalEnforcement (BSEE) estimate2 more than 40% of facil-ities and structures in the GOM are over 25 years old andin sight of their designed service life. Moreover, theindustry has averaged more than 130 platforms removalsper year over the past decade, exceeding the number ofnew installations.

BSEE PIPELINE ABANDONMENT REGULA-

TIONS

BSEE compliance regulations3 for subsea pipelinesthat reach the end of their useful life require one of twoactions: (1) the pipeline must be de-inventoried andpurged until the hydrocarbon levels are undetectablebefore abandoning them in place; (2) the pipeline shouldbe recovered for onshore disposal. For abandonedpipelines, a suitable abandonment fluid such as is inhib-ited seawater is commonly used, and would typically betreated with an oxygen scavenger, a biocide, corrosioninhibitors, or other specific additives depending on thepipeline metallurgy, prior service and anticipated lengthof time of abandonment.

FLOWLINE BLOCKAGE

An operator of a small gas and condensate field witha single-well subsea 6” tieback to a production manifoldexperienced a paraffin blockage during pipeline flushingoperations as part of the field-wide decommissioningscope of work. It was not possible to successfully de-inventory the hydrocarbons per BSEE requirements, andan innovative and cost-effective approach was required

whilst a Light Construction Vessel (LCV) was being uti-lized in the field.

Due to the distance of the blocked flowline (approx.17,000’), the subsea configuration, and limited access,the client had limited options to successfully reach theblockage and quickly remove the deposition. TheBlueFin eelReel pipeline remediation technology wasselected to be used from the LCV in conjunction with acustom hang-off frame to allow for recovery of pipe tovessel to mechanically remediate blockage throughoutthe flowline.

FLOWLINE SPECIFICATIONS

• OD: 6.625 inch• ID: 5.5 inch• Length: 17,350 feet• MAOP: 1440 psi• Water depth: 1150’

EELREEL TECHNOLOGY

The eelReel technology utilizes a set of bespokehigh-pressure polyurethane cups attached to the body ofa scraping and jetting tool, which is attached to conven-tional Coiled Tubing (CT).

Pressure and flow are applied in the annular spacebetween the flowline and CT, that creates a differentialpressure across the eelReel tool and a correspondinghydraulic force to drive the tool and CT into the flowline.This forward hydraulic force maintains the tensionthroughout the CT, thus eliminating any helical issues.

Predetermined ports within the body of the tooldirects the annular flow through angled jets at the front ofthe tool to create high velocity jetting to assist removal ofdebris.

All deposition in front of the tool is removed andreturned inside the CT back to the surface, whilst main-taining annular flow to ensure the contaminants are suc-cessfully transported.

The CT also acts as a tether for the retrieval of thetool once the blockage is removed, and various attach-ments can be connected at the front of the tool for latch-ing and retrieval of stuck pigs.

SCOPE OF WORK

The Subsea Contractor of the LCV modified anexisting hang off frame design to accommodate flowlinerecovery to surface. The flowline was isolated, depres-surised and made safe prior to disconnection at the plat-form PLET, then lifted and secured in the hang off. Theflowline end was dressed to receive a weld-on flange toenable a gate valve to be installed prior to the assemblyof the BOP, a flow cross and the eelReel test spool.

eelReel Technology Enables Subsea Flowline AbandonmentPlugged Deepwater Flowline Remediated from Vessel

Rob Bain - VP Flow Solutions, BlueFin

1. https://www.bsee.gov/stats-facts/ocs-regions/gulf-of-mexico2. https://www.bsee.gov/what-we-do/research/tap-categories/decommissioning3. https://www.bsee.gov/sites/bsee.gov/files/tap-technical-assessment-program//738aa.pdf

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The flowline remediation system was located on theLCV and comprised of:

• Conventional 1 ½” Coiled Tubing system withinjector head

• Dual shaker solids handling system• eelReel mechanical remediation head• 2 phase separator• Diesel recirculation systemOn completion of system pressure testing and flush-

ing operations, equipment function tests were carried out,and then pull tests on the CT connector.

The eelReel tool was then connected to the CT andinserted in the pre-deployment test spool for checkingand testing of the tool’s forward hydraulic force and jet-ting flow / velocities for the flowline application toensure the optimal configuration.

On completion of the tool testing, the gate valve atthe end of the flowline was opened and the annular dieselfluid system started to propel the eelReel tool into theflowline. Immediate fluid circulation through the tooland back up the CT to the was observed, confirminggood circulation path.

The fluid returns were routed to the dual shakers forprocessing to remove paraffin solids, with the diesel fromthe shakers circulated through a filter pod and on to a 60BBL Tank, and the water was pumped into 500 BBL tankfor disposal.

Significant paraffin solids returns were immediatelyencountered that were effectively processed by the solidsand fluids handling systems and continued to be experi-enced over the entire flowline length. The Rate ofPenetration (ROP) of the tool varied from 2-6’/mindepending on the nature of the paraffin (soft or hard), andthe thickness / volume of paraffin and sand beingremoved.

In total 75 BBLS of paraffin and sand were removedfrom the flowline with target distance of 17’000’ success-fully achieved in one single pass over 4 days. Flushingoperations were then carried out to remove the diesel andresidual hydrocarbons to achieve successful static sheentest. The eelReel tool and CT were then retrieved fromthe flowline at 40’/min whilst continually circulating sea-water

CONCLUSION

The technical challenges faced on this projectrequired an innovative method to access the subseaflowline to effectively remove the significant paraf-fin deposition and blockage prior to successfulhydrocarbon de-inventory and purging.

The ingenuity of the vessel contractor andBlueFin demonstrated that a vessel-based flowlineintervention in deepwater could be safely and cost-effectively executed in a fast-track schedule.

With significant and continued decommission-ing activity anticipated in the GOM due to an abun-dance of ageing infrastructure and lower oil prices,the industry requires more efficient and cost-effec-tive methods, and this project is a great example of

how collaboration and technology can create value whilstallowing operators to fulfil their decommissioning com-pliance needs.

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Safety Alert No. 366Dangerous Levels Of H2S Detected

At Offshore FacilitiesOver the past year, offshore oil and natural gas indus-

try contractors conducting pipeline and well abandon-ment operations have experienced releases of hydrogensulfide (H2S) into their working areas. H2S is a poison-ous gas found in sour petroleum reservoirs, and alsoresults from microbes in seawater that has accumulatedin pipelines and tanks. Thus, elevated levels of H2S canarise from flushing pipelines containing seawater duringdecommissioning operations. Below are summaries ofrecent H2S release incidents:

· During flushing operations, water was transferredfrom a pipeline to an open-top flow-back tank. After per-sonnel reported a H2S odor coming from the tank, a gasreading was taken in the area. The concentration of H2Swas 100 parts-per-million (ppm). All operations ceased.Hourly readings were taken and the concentration steadi-ly decreased. No personnel were injured during the inci-dent.

· During flushing operations of a pipeline into the gasbuster, a portable gas meter detected a reading of 15 ppmof H2S near the gas buster. An "All-Stop" was calledimmediately. After taking additional readings and deter-mining the area clear of the hazardous gas, an employeebegan experiencing H2S symptoms (i.e., dizziness andnausea). The employee was moved into a safe area withfresh air and was given fluids. His symptoms were mon-itored until they subsided two hours later.

· During well temporary abandonment operations,the casing was aligned through the choke manifold to thegas buster to take returns. After the choke was open, theH2S alarm sounded. All personnel mustered. H2S techni-cians donned their necessary personal protective equip-ment and took readings at the gas buster liquid outlet,which indicated a level of approximately 2300 ppm fromthe retrieved sample. The stationary H2S sensor directlyoutside of the vessel measured a peak atmospheric read-ing of 135 ppm at the time of the incident. The crew peri-odically took readings and the levels declined. No per-sonnel were injured during the incident.

Therefore, BSEE recommends that operators consid-er the following:

· Inform all personnel of potential sources of H2S onthe facility, especially during specialized operations thatcan produce H2S as a by-product, such as well stimula-tions and pipeline abandonment work;

· Ensure that personnel understand that H2S may bepresent even on non-sour service facilities. The first twoincidents described above did not occur on sour servicefacilities;

· Ensure that safe work practices for abandonment

work include H2S preparedness, enhanced personal pro-tective equipment, and procedures for monitoring per-sonnel in hazardous areas with the potential for exposure;

· Consider H2S hazards and mitigations in Job SafetyAnalyses (JSAs) when conducting abandonment opera-tions;

· Verify that Rescue / Emergency Response Plansinclude the evacuation of an incapacitated person from aH2S area. Review rescue plans before starting a jobwhere H2S may be present;

· Periodically perform H2S release drills. Drillsshould include donning respirators, rescuing an incapac-itated person and mustering to a safe area;

· Inform personnel who might be involved inattempting rescue of an incapacitated person that theymust take precautions to protect themselves. Firstresponders have been injured or killed during gas releaserescues;

· Implement the use of portable H2S detectors tocontinuously monitor the presence of H2S during opera-tions with the potential for H2S exposure;

· Verify that all portable gas detection devices arecalibrated quarterly and bump-tested prior to use to con-firm accurate readings;

· Ensure that a suitable liquid seal and back-flow pre-vention device are engaged prior to taking returns to agas buster from a pipeline where H2S could exist; and

· Follow H2S guidelines per 30 CFR 250.490 andNTL 2009-G31.

Safety Alert No. 367Saturated Glycol Handling Leads to Fire

In January 2019, a fire occurred on a production plat-form resulting in damage to a glycol reboiler unit andcompressor building.

Prior to the fire, and after an extended shut-in, plat-form personnel began the platform start-up process. Thefield foreman ignited the glycol reboiler and set the tem-perature to 200º F. The foreman continued the start up byincreasing the temperature to 250º F, but did not initiatecirculating the reboiler fluid contents. The field foremanleft the glycol reboiler unattended to handle a compressorshutdown and other duties as the temperature increased.Less than 90 minutes later, a mechanic observed a largeflame on the side of the platform where the glycol reboil-er unit is located.

BSEE’s investigation revealed that the operator’sstart-up procedure did not provide specifics on the rate oftemperature increase when starting the reboiler after anextended shut-in, nor did the procedure note that thereboiler should not be left unattended during start-up.

The fluid in the glycol reboiler had approximately21% water content at the time of startup, possibly due to

Bureau of Safety and Environmental Enforcement

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the extended shut-in. During normal operations, the typ-ical water content of the reboiler should be less than 6%.

BSEE determined the cause of the fire to be highwater content combined with a rapid increase in temper-ature, which flooded the still column; the flooded stillcolumn expelled glycol and hydrocarbon condensateonto the reboiler stack, where it ignited.


• Provide advanced training to personnel who workwith glycol units to address handling saturated glycolsafely;

• Ensure that procedures specify that glycol systemstart-up should be a manned operation;

• Ensure that procedures specify circulation timebefore increasing boiler temperature; and

• Review reboiler stack installations and consideradding insulation to mitigate the stack as an ignitionsource.

For more information on this incident, see the inci-dent report here or at the following url:https://on.doi.gov/2nPJGr7

Safety Alert No. 368Inadvertent Opening of Valve Under Pressure Causes Injury

On May 20, 2019, an offshore oil and gas workerwas conducting daily rounds, which included checkingfor fluid in the gas lift fluid slug catcher. The workernoticed that the drain line to the associated containmentpan was leaking. The worker attempted to close a ½-inchball valve that drains to the catcher containment pan, butinstead of closing it, the worker inadvertently opened thevalve, releasing approximately 1200 pounds per squareinch (psi) of pressure. This pressure release caused thedrain tubing to dislodge from the containment pan andstrike the worker, fracturing the worker’s nose.

BSEE determined that four main factors led to theincident:

1. A dump valve system was installed six monthsprior, making the drain line tubing and ball valves unnec-essary; however, these components had not beenremoved and capped.

2. The Job Safety Analysis (JSA) did not specificallyidentify and address hazards associated with working

with pressurized equipment.3. The injured worker opened the valve instead of

closing the valve;4. The drain line tubing was only supported by a zip

tie, which offered little resistance when pressurized.Therefore, BSEE recommends that operators consid-

er the following:· Use a manual control valve (e.g., needle valve) that

allows for flow in place of valves (e.g. ball valves) thatdon’t allow for a regulated pressure drop ifsampling/bleeding operations are required;

· Verify that JSAs identify potential hazards and mit-igate those hazards for the task being performed;

· Ensure that, when changes are made to equipment,all hazards are identified and mitigated through theManagement of Change (MOC) process. Update facilityinformation and inform all personnel affected by thechange(s);

· Install tubing lines used for draining/bleedingprocess equipment with a minimum amount ofbends/angles to eliminate pressure resistance;

· Do not use drain tubing longer than necessary;· If extended lengths of tubing are necessary, secure

tubing drain lines with appropriately designed materialsand techniques to prevent potential movement.

· Verify current platform conditions are reflected onpiping and instrumentation diagrams (P&IDs).

Safety Alert No. 369Non-OEM Parts Were Significant Causal

Factors in Two Recent Loss of Control ofTraveling Block Incidents

On September 11, 2019, a drill crew was lowering a7.625” casing joint. The driller was unable to applyenough brake power necessary to stop the full descent ofthe top drive. The Operator’s incident investigationrevealed that the set pin of the drum brake assemblybroke/snapped off allowing the roll pin to back out of thebrake assembly which prevented the drum-break frombeing engaged. This failure caused the top drive and cas-ing joint to slowly lower into the joint located in the slips.The top drive descended until the traveling block restedon the casing stabbing board due to lost brake tension.The offside brake stayed engaged and slowed thedescent, which helped prevent harm to personnel andlimited damage to equipment.

On July 20, 2017, in a separate incident, an operatorreported a dropped object incident while conductingdrilling operations. The incident involved drill line thatunspooled and detached from the drawworks drum, caus-ing the traveling block and approximately 123 feet ofdrill line to descend to the rig floor. The investigationreport indicated improperly sized drill line drum clamp


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A Safety Alert is a tool used by BSEE to inform theoffshore oil and gas industry of the circumstances sur-rounding a potential safety issue. It also contains recom-mendations that could assist avoiding potential incidents onthe Outer Continental Shelf.

Go Gulf Magazine prints BSEE information as a cour-tesy to its readers, and it not responsible for contents of theBSEE reports.


and clamp bolts were installed on the drawworks drum.Incident investigations for both of the above events

revealed incorrect, non-original equipment manufacturerparts were significant causal factors.


• Inspect drawworks systems to ensure that originalequipment manufacturer (OEM) parts are installed cor-rectly;

• Inspect the drum brake and cable retention systemsas part of the six-month and 5-year periodic inspections;

• Conduct maintenance according to frequencies rec-ommended by the manufacturer and by API RP 8B;

• Identify additional equipment where retaining pinsshould be inspected for deficiencies;

• Consider reviewing and verifying all dimensionsand material properties of critical components; and

• Consider reviewing the use of non-OEM parts as aManagement of Change (MOC) process.

Safety Alert No. 370Overcharged Battery in Non-Ventilated Box

Lead to Explosion of Remote Terminal Unit Panel

On February 14, 2019, a Remote Terminal Unit(RTU) panel (used for sending gas sales data to shore)exploded. Projectiles from the components landed over40 feet away. There were no injuries and no damage tonearby equipment.

The investigation found evidence that a 12 Volt bat-tery inside the panel was overcharged. This producedenough hydrogen gas to create an explosive mixturewithin the panel. The hydrogen gas was likely ignited byan electrical component within the panel that was notrated for the Area Classification in which it was installed.

American Petroleum Institute (API) RecommendedPractice (RP) 14F (incorporated by reference in 30 CFR250.198) states, “[a]ll rechargeable type batteries releasehydrogen to the atmosphere in varying degrees” … “[a]llrechargeable battery systems should be installed suchthat hydrogen cannot collect in sufficient quantity to cre-ate a hazard.”

The overcharged battery was installed in a non-ven-tilated panel, creating a Class 1 Division 1 location asdefined in API RP 500. The components inside the panelwere not rated for use in a Class 1 Division 1 location, soone of these non-rated components may have been theignition source for the explosion.


• Ensure battery enclosures comply with API RP 500;• Confirm all rechargeable battery systems are

installed properly to prevent the level of hydrogen collec-tion that can create a hazard. Refer to API RP 14 F sec-tion 4 for protection methods; and,

• Verify all electrical components are rated for thearea classification in which they are installed. Pay atten-tion to third party installations, especially when a thirdparty may not be familiar with the facility’s AreaClassification layout drawings.

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Driller’s side drum brake band assembly at the time ofthe 2019 incident.

View of traveling block and unspooled cable drill lineon rig floor following the 2017 incident.

Backed out drumbrake assemblyset roll pin

Main brakepin no longersecured byretainer pin


Safety Bulletin No. 021Multiple Arc Flash Incidents on

Offshore FacilitiesBSEE is aware of eight arc flash incidents that have

occurred on the U.S. Outer Continental Shelf (OCS)since 2015. An arc flash is a powerful burst of energythat can travel 10 feet (3 m), reach 35,000º F, and pro-duce pressure and sound waves strong enough to throwworkers across a room.

Exposure to an arc flash hazard can result in hearingloss, respiratory damage, blindness, burns, other injuryor death. The specific causes of the eight arc flash inci-dents reported to BSEE were:

· A worker with a conductive object was in closeproximity to a high amp source;

· Dropped tools;· Accidental contact with electrical systems;· Equipment failure due to use of substandard parts,

worn parts and improper installation;· Breaks or gaps in insulation; and· Corrosion, dust, and other impurities on the surface

of the conductor.Therefore, BSEE recommends that operators consid-

er the following:· Ensure all electrical systems follow 30 CFR

250.114 and API 14F, which references NFPA 70E,Standard for Electrical Safety in the Workplace. NFPA70E provides guidelines that, if followed, should protectworkers who may be exposed to arc flash and/or electricshock hazards;

· Conduct a risk assessment of arc flash hazards andimplement control measures to protect workers againstthese hazards. The assessment and control measuresshould focus on both work activities designated as elec-trical work and routine activities which may indirectlymay pose an arc flash risk;

· Develop and implement a documented “lockout/tagout program” to protect employees from electrical ener-gy;

· Establish safe work procedures that avoid or dis-courage working on or around energized equipment. Ifwork must be done on equipment that is energized,ensure that the hazards are identified, communicated andmanaged through tools such as a Job Safety Analysis(JSA), Personal Protective Equipment (PPE), and extrasupervision and training;

· Install all arc barriers provided by circuit breakermanufacturers;

· Ensure circuit breaker cable connections are ade-quately insulated with materials appropriate for the phys-ical environment and application;

· Ensure that offshore workers avoid standing infront of circuit breakers and switches on switchgearwhen operating them to avoid the potential projection ofarc flashes;

· Make sure arc flash warning labels are installed inaccordance with the guidelines of NFPA 70E on electri-cal equipment such as switchgear, switchboards, indus-trial control panels and motor control centers; and

· Ensure that all electrical one-line diagrams requiredby 30CFR 250.842 are kept up-to-date and available topersonnel working on electrical equipment.

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Safety Bulletin

(left) A flash captured on camera. (right) Proper warning labels advising workers of the dangers associated withworking in an area where arc flashes can potentially occur.


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New Products and Services

GATE Energy has announced the strategic expan-sion of its credit facility with Prosperity Bank. Thisdemonstrates Prosperity's confidence with GATEEnergy's performance and future growth. As part of thispartnership, GATE Energy has access to additional capi-tal that will fund organic growth and strategic acquisi-tions.

Chase Zalman, President of Prosperity Bank, said,"We are definitely excited to be associated with a strongand healthy company such as GATE Energy who showedvision and growth out of the downturn. With a seasonedmanagement team, strong backlog, and solid perform-ance, they are setup for growth and success."

Raymond Turner, CFO of GATE Energy, said, "Themacroeconomic picture of deepwater and FID's from ourclients signals strong growth ahead and investments inour operations. This is a testament to our engineering,commissioning, and specialty field services teams thathave consistently demonstrated project and financial suc-cess. GATE Energy continues to deliver results to ourclients and shareholders, as it has in the past."

GATE Energy is a family of companies that providescalable, fit-for-purpose services for the energy sectorincluding engineering, commissioning, and specialtyfield services.

For more information on GATE Energy, visitwww.gate.energy

DYNAMIC Industries Inc., an industry leader inthe Oil, Gas and Petro Chemical fields as a fabricator forupstream, downstream, mid-stream and sub-sea compo-nents for large multinational clients, has been awardedanother fabrication contract from an existing client. Thisaward is important, not only because it represents a voteof confidence from a repeat client, but it is yet another ina string of recent wins for DYNAMIC during a periodwhen many competitors face challenges in landing mod-ular fabrication projects.

The recent award is for the first of a multi-phase con-struction project for a liquefied natural gas (LNG) pro-duction and export terminal on the west bank of theCalcasieu River, south of Lake Charles, Louisiana. Oncecomplete, the terminal will be able to export up to twen-ty-seven million, six hundred thousand tonnes of LNGper year to customers worldwide, further establishingLouisiana as one of the fastest growing hubs on the plan-et for LNG export.

Regarding the LNG opportunities for the US GulfCoast, Emile Dumesnil, CEO of DYNAMIC said,“Louisiana has always been at the forefront of the energyindustry. LNG, as a clean-burning fuel, will play a cru-cial role in the current energy transition advancing thetransformation of the global energy industry towards alower carbon footprint and establishing Louisiana andDYNAMIC as key players in that energy transition.”

Fabrication will be performed at DYNAMIC’s New

Iberia facility. The project is scheduled to start fourthquarter of 2020, with completion expected mid-2022.The total tonnage of this project for DYNAMIC will be19,000 tons and will employ a peak workforce of inexcess of 500 people.

Jeff Clement, EVP & COO of DYNAMIC’s USFabrication Division noted that: “With limited US GulfCoast modular fabrication opportunities, DYNAMIC’ssuccesses over the years in modular fabrication is direct-ly related to providing our clients with competitive pric-ing and one of most comprehensive quality and safetyprograms in the industry. We are immensely proud to bepartnering with one of the world’s largest engineeringcompanies to build Louisiana’s next state-of-the-art LNGexport terminal. And we are equally proud to play ourpart in creating more jobs for Louisiana.”

Over the last several years DYNAMIC has delivered,or is in the process of delivering, major back-to-backprojects including the Shell Mars B (aka Olympus) off-shore platform, the SASOL petrochemical project, theShell Appomattox Deepwater offshore platform, theNoble Energy Permian project, the Shell PennsylvaniaPetrochemical Project, LyondellBasell’s ChannelviewComplex expansion and other major upstream and down-stream projects. In addition to the current LNG award,DYNAMIC has been awarded another LNG modularfabrication contract, which is subject to final investmentdecision by the client prior to proceeding.

Founded in 1985 as an offshore service company,Dynamic Industries, Inc. (www.dynamicind.com) is amajor fabricator and a leading brownfield, hook-up andcommissioning contractor in the Gulf of Mexico, WestAfrica, the Caribbean Basin, and Saudi Arabia.

Gator Technologies, a leading provider of downholetools, has expanded its operations in Midland, Texas andBroussard, Louisiana.

The new facilities will provide purpose-built space tosupport Gator’s bottom hole assembly tool rental, repairand manufacturing capabilities.

Marc LeBlanc, president and COO, Gator, said,“Adding these new facilities will allow us to better serveour customers located in the Permian Basin and GulfCoast regions. By operating from these strategic bases,we will reduce transportation costs and delivery timesand respond immediately to our customers’ needs.”

Chris Miller, business development manager, Gator,commented, “Our team continues to deliver a unique per-spective and expertise to the downhole rental tool busi-ness. We are pleased to deliver on the promise we madeto our customers: to continue to support their business,bringing quality tools and exceptional service to all geo-graphic areas where our services are required.”

The new Midland facility is located at 9910 WCounty Rd 157, Midland, TX and the Broussard facilityis located at 128 Thruway Parkway, Broussard, LA.

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New Products and Services

Gator Technologies offers unmatched bottom holeassembly knowledge with more than 50 years of com-bined experience in directional drilling. Gator isequipped for today’s demanding drilling applications,supplying and servicing downhole tool rentals through-out the entire bottom hole assembly. With locations inHouston, Midland and Broussard our team providesunmatched service quality and superior drilling perform-ance. For more information, visit: http://www.gatortech-nologies.net.

Variable Bore Rams Inc., the largest original equip-ment manufacturer ram and blowout preventer (BOP)component provider in the world, has added Cameron’snew dual-string interlocking (DSI) shear rams to itsinventory.

The DSI shear rams enhance operational flexibilitywith an innovative performance-improving ram inter-locking mechanism. Arms on the upper ram prevent anyvertical separation between the lower and upper blades,shearing wireline and braided cable with zero tension inthe line. Without the need for a foldover shoulder, theDSI shear rams have the capacity to shear larger diameterpipe and casing.

Chip Marshall, chief executive officer and president,VBR, said, “The new dual-string interlocking shear ramsare completely new and unique in the industry, comply-ing with upcoming Bureau of Safety and EnvironmentalEnforcement requirements for Outer Continental Shelfdrilling platforms. The shearing capability of the newDSI rams far surpasses that of any other rams on the mar-ket, providing a valuable extra layer of safety to opera-tions on site.”

The DSI shear rams are available in 13-5/8 in. 3-10M Cameron U/UM BOPs.

Variable Bore Rams Inc. provides support forblowout prevention operators worldwide and offers awide variety of BOP components and products, includingrams and elastomers. Stocking the latest in equipmentand providing the most recent product upgrades, engi-neering updates and technical bulletins, VBR providesservices worldwide, 24 hours a day, seven days a weekand at a moment’s notice. For more information,visit www.vbri.com.

Danos has been awarded multiple contracts to fabri-cate, install and automate compressor station compo-nents for a full-service midstream provider. The fabrica-tion work, including separator skids and spool piping,will take place in Danos’ Larose, Louisiana, facility withfield installation and hookup at five Permian-based siteslocated in Culberson County, Texas, and Eddy County,New Mexico.

“This is an exciting time for our company as we seea growing number of customers in the Permian, EagleFord, Delaware Basin and Gulf of Mexico looking to

Danos to provide integrated services solutions,” saidowner Mark Danos. “We look forward to continuing togrow our partnerships with existing and new customers.”

About 60 employees from Danos’ fabrication, con-struction, instrumentation and electrical service lines areassigned to the project, which began in June and isexpected to take approximately five months to complete.

Danos, a 72-year-old company, has provided servicesin the Permian Basin for over seven years, and theemployee number in the area has grown to 500. The com-pany recently moved into a newly construction office forits Permian headquarters in Midland, Texas.

BCCK Holding Company, a leader in engineering,procurement, fabrication and field construction services,has been selected by Energy Transfer for the constructionand installation of a Nitech® Nitrogen Rejection Unit(NRU) in West Texas.

The engineering, procurement and construction(EPC) project will consist of a 97 MMSCFD nitrogenrejection unit incorporating BCCK’s Style III Nitech®NRU technology at Energy Transfer’s Rebel Plant.

Jim McCaleb, vice president of processing, EnergyTransfer, said, “We selected BCCK for their extensiveknowledge in nitrogen rejection and we are excited towork with them on an NRU project.”

John Peterson, senior vice president of businessdevelopment, BCCK, said, “We are excited to get theopportunity to work with Energy Transfer on this NRU.This project will allow us to showcase BCCK’s gas pro-cessing and nitrogen removal knowledge as well asexhibit the company’s construction skills.”

The agreement was finalized in September, and theinstallation of the NRU is expected to be completed inQ3 2020. This project marks BCCK’s 30th NRU, as its40-year anniversary approaches.

BCCK Holding, the parent company of BCCKEngineering, NG Resources and NGF Construction, spe-cializes in full EPC (engineering, procurement and con-struction) projects including concept, engineering,design, fabrication, manufacturing and complete con-struction services. Providing full EPC services helps theBCCK family of companies improve project economicsby being a single-source provider for all stages of a proj-ect. BCCK Engineering is also the industry leader innitrogen rejection with its proven Nitech® process.Headquartered in Midland, Texas, with a satellite engi-neering and sales office in The Woodlands, Texas, BCCKwas founded in 1980, holds numerous technology patentsand has approximately 200 employees. For more infor-mation,

For more information, visit www.bcckholding.com.

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Oilfield Christian Fellowship www.oilfieldchristianfellowship.com

OCF luncheons and dinners are held in Canada,Colorado, Oklahoma, Texas, Louisiana, Wyoming,and Pennsylvania, with more chapters in the making.Speakers share how they came to know Christ andwhat He is doing in their lives. Because of this, thou-sands of men and women have been encouraged,lives have changed and many have accepted Christfor the first time.

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“Fabrication of modules underway at Dynamic’sNew Iberia, La. facility for a major petro chemicalproject along the US Gulf Coast”.


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Environmental NEWSFrom solar panel installers to wind turbine inspectors,

Dominion Energy is helping create a clean-energy workforce

Dominion Energy is one of 20 organizations that joined forces to launchSHINE – Solar Hands-On Instructional Network of Excellence – whichtrains solar installers at Southside Virginia Community College and maxi-mizes local talent to meet the growing demand for clean-energy jobs. Theinaugural class recently graduated, and the hands-on training program willlink graduates with potential employers in the solar energy field.

The program is one of several ways Dominion Energy is investing inworkforce development, as clean-energy jobs become a more and moreimportant part of the US economy. Solar jobs alone nearly doubled from2015 to 2018, according to the Solar Energy Industries Association. Offshorewind development could create up to 37,000 jobs in Virginia alone.

"We have a strong history of creating job opportunities across Virginia,”said Matt Kellam, military and recruitment program coordinator atDominion Energy. Kellam is a veteran of the United States Marine CorpsReserves and chairperson of the Virginia Energy Workforce Consortium. "Aswe continue to build wind and solar projects, we are also creating new oppor-tunities for workers."

Dominion Energy, which recently announced the largest commercial off-shore wind project in the U.S., has committed to having 3,000 megawatts ofsolar and wind energy in operation or under development in Virginia by2022. That's enough to power 750,000 homes. As energy sources evolve, sodo the skills needed to support them. Among other things, Dominion Energyis helping to develop the future workforce by:

• Training current employees to access and inspect offshore wind tur-bines. They are learning everything from first aid to working at heights. Next, they will learn sea survival skills.Recent classes were conducted in partnership with Siemens Gamesa Renewable Energy, in advance of the CoastalVirginia Offshore Wind project. Two 6-megawatt turbines will be installed and begin generating clean energy nextyear.

• Partnering with Tidewater Community College since 2010 to help build a curriculum for clean-energy educa-tion. A leader in training clean-energy workers, the college created one of the first Career Studies Certificates inRenewable Energy Technologies. More than 50 students have gone through the program,

• Supporting students at West Virginia colleges and universities to acquire career skills in energy. The companyfunded the Dominion Energy Natural Gas Measurement Laboratory at West Virginia University and provides finan-cial support for qualifying students in their Petroleum and Natural Gas Engineering program. Dominion Energy sup-ports similar programs at the state's Pierpont Community and Technical College, Bridge Valley Community andTechnical College, and West Virginia Northern Community College. These programs are important because naturalgas is a great partner for renewable sources of energy. It helps fill in the gaps when the sun isn't shining and the windisn't blowing.

• Remaining a major employer of military veterans, with one in five new hires being a veteran. The companyproudly supports Troops to Energy Jobs, which helps veterans successfully transition to a career in the energy indus-try. For 11 years running, G.I. Jobs has named Dominion Energy a Top Military-Friendly Employer (and the highest-ranking energy company on the list). The company also has received the Employer Support of the Guard andReserves Freedom Award from the U.S. Department of Defense and the V3 Influencer Award from the VirginiaValues Veterans program.

• Maintaining a robust internship program that opens doors to a range of clean-energy jobs. The companyemploys more than 320 interns each year, and recently hosted a diversity student conference to attract top talent frommore than 70 universities and colleges across the country. Hear the students talk about the conference in their ownwords.

Dominion Energy also is developing initiatives to retrain existing employees, as it maps a balanced, reliable andcost-effective approach to a clean energy future. The company is evaluating existing skill sets, identifying new skillsets needed to support its clean energy investments, and determining if any training and development opportunitiesare needed for employees to be prepared for the jobs of the future.

To learn more about career opportunities at Dominion Energy visit: https://careers.dominionenergy.com/


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