February 2019

World Trends and Technology for Offshore Oil and Gas

TOP 10 OFFSHORE

DRILLING
CONTRACTORS

SUBSEA CAPEX FORECAST

DRILLING RIG EQUIPMENT

1902OFFC1-C5.indd 1 2/4/19 10:56 AM

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 CONTENTS •

International Edition
Volume 79, Number 2
Celebrating 60 Years of Trends, Tools, and Technology

• TOP 10 OFFSHORE DRILLING CONTRACTORS
Top 10 offshore drilling rig contractors solidify their
positions�������������������������������������������������������������������� 23
Offshore drilling rig contractors faced considerable change in 2018, but
the top 10 contractors (based on the number of rigs managed) solidi-
fied their leading positions and managed to secure a larger portion of
the global rig fleet.
• GULF OF MEXICO
Deepwater subsea well spuds on the decline���������������������26
In the final part of this five-part series on Gulf of Mexico well trends,
subsea wells, also known as wet wells, are examined.
23
• DRILLING & COMPLETION
Industry advancing drill rig technology to meet more
demanding applications���������������������������������������������������������28
As operators seek to develop fields in ultra-deepwater and high-pres-
sure reservoirs, drilling contractors and downhole service firms are re-
sponding with an array of new technologies designed to enable drilling
and completion operations with greater efficiency and safety.
Automotive damping system adapted to minimize
drillstring vibrations����������������������������������������������������������������30
The SureDrill Active Vibration Damper is a new drilling optimiza-
tion development that employs similar technology to that applied to
adaptive shock absorbers by the automotive sector to reduce drillstring
vibrations downhole. The technology was recently trialed successfully
in the Norwegian North Sea.

Offshore® (ISSN 0030-0608). Offshore is published 12 times a year, monthly, by PennWell® Corporation, 1421 S. Sheridan, Tulsa, OK 74112. Periodicals postage paid at Tulsa, OK 74112 and
at additional mailing offices. SUBSCRIPTION PRICES: US $127.00 per year, Canada/Mexico $165.00 per year, All other countries $208.00 per year (Airmail delivery $292.00). Worldwide digital
subscriptions: $76.00 per year. POSTMASTER: Send address corrections to Offshore, P.O. Box 47570, Plymouth, MN 55447. Offshore® is a registered trademark. © PennWell Corporation 2019.
All rights reserved. Reproduction in whole or in part without permission is prohibited. We make portions of our subscriber list available to carefully screened companies that offer products and
services that may be important for your work. If you do not want to receive those offers and/or information via direct mail, please let us know by contacting us at List Services Offshore, 1421 S.
Sheridan Rd., Tulsa, OK, 74112. Printed in the USA. GST No. 126813153. Publications Mail Agreement no. 40612608.

FEBRUARY 2019   OFFSHORE | WWW.OFFSHORE-MAG.COM1

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 © 2019 Halliburton. All Rights Reserved.

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2/4/19 10:56 AM
© 2019 Halliburton. All Rights Reserved.
 Inspired by the past. Leading into the future.
INNOVATION. COLLABORATION. EXECUTION.

We’ve come a long way since 1919. What started with a single product in a small town is
now a global organization with more than 60,000 employees around the world. For 100
years, we have earned our reputation as “the execution company,” delivering unparalleled
customer service and innovative solutions to the oil and gas industry. Our inspiration
comes from our people—past and present—and the values we stand for: integrity,
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committed to continuing our legacy as one of the most well-respected energy services
companies in the world as we prepare to lead into the future.
© 2019 Halliburton. All Rights Reserved.

hal100.com

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  CONTENTS

Volume 79, Number 2

DEPARTMENTS
COVER: The top 10 offshore drilling rig contractors have Online ...................................... 6
solidified their leading positions, and Ensco remains at Comment .................................. 8
the top of the list for the second year in a row. The ultra- Data ....................................... 10
deepwater drillship ENSCO DS-9 (cover) was recently Global E&P ............................... 12
chartered by Total for work offshore French Guiana. Offshore Europe ......................... 14
(Courtesy Ensco) Gulf of Mexico........................... 15
Subsea Systems ......................... 16
Vessels, Rigs, & Surface Systems ... 18
 ENGINEERING, CONSTRUCTION, & INSTALLATION Drilling & Production................... 20
New methodology helps reduce carryover work, improve project performance. 34 Regulatory Perspectives .............. 21
The goal here is to demonstrate a methodology that can be used to develop probabilistic distribu- Offshore Wind Energy .................. 22
tions of the first oil milestone date based on various constrained sailaway dates and the resultant Business Briefs ......................... 62
carryover work. This can then be used to develop a risk-based cost-benefit tradeoff model to find Beyond the Horizon ..................... 64
an optimal sailaway date to maximize project value. Furthermore, the value of mitigation plans Advertisers’ Index ......................C3
can be assessed (cost vs. schedule improvement) accordingly.
Kvaerner adapts construction methodology for giant Johan Sverdrup jackets.. 37  SUBSEA
Norway is undergoing an intense period of offshore development, to the benefit of the country’s ROV technology facilitates subsea
major fabrication yards. The focus at Kvaerner’s yard in Verdal has been on four giant jackets for hardware retrofit job .......................... 46
the Johan Sverdrup complex in the North Sea. At Stord, the company has invested in a new crane Saturation divers traditionally carry out
to speed up topsides module assembly and an extended quay at the yard in Stord, allowing FPSO inspection, maintenance and repair work at
hulls to berth alongside for topsides installations. subsea installations. However, it is not always
possible to use divers due to operator safety
concerns over divers working in high current
offshore environments. Those safety concerns
led one operator to contact Oceaneering to
retrofit existing subsea hardware at a field
offshore Trinidad and Tobago, enabling
subsea connectivity with remotely operated
vehicles.
 EQUIPMENT & ENGINEERING
Airborne Oil & Gas wins contract for
TCP Jumper off West Africa ............. 60

Pragma gets go-ahead for downhole

steam valve testing............................ 61

37
Offshore field development spend expected to reach seven-year high ............... 42
Despite a generally underwhelming end to 2018 that saw the Brent barrel lose over half of its
value between October and December, expectations for the offshore supply chain in 2019 are
optimistic. After averaging $81 billion over 2017-18, E&P field development spending across the
global offshore industry is expected to hit $115 billion in 2019.

 PRODUCTION OPERATIONS
Digitalization speeding delivery of complex subsea concepts ............................. 43
Digitalization advances and emerging visualization techniques are helping EPC contractors to

61
generate multiple field concepts in much shorter time frames for complex subsea projects. This
brings cost benefits to contractor and client alike, also reducing project design uncertainties.

4 WWW.OFFSHORE-MAG.COM | OFFSHORE FEBRUARY 2019

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  ONLINE

VP AND GROUP PUBLISHING DIRECTOR

Paul Westervelt pwestervelt@pennwell.com
LATEST NEWS AVAILABLE AT OFFSHORE-MAG.COM
CHIEF EDITOR/
The latest news is posted daily for the offshore oil and gas industry covering tech- CONFERENCES EDITORIAL DIRECTOR
David Paganie davidp@pennwell.com
nology, companies, personnel moves, and products.
MANAGING EDITOR
NEW ON-DEMAND WEBCAST Bruce A. Beaubouef bruceb@pennwell.com

Top Offshore Projects: Leading strategies in capital efficiency EDITOR-EUROPE

Jeremy Beckman jeremyb@pennwell.com
After a prolonged market downturn, offshore field development projects are once again
ASSISTANT EDITOR
moving toward first oil. Higher oil prices, cost reductions, technological breakthroughs Jessica Stump jessicat@pennwell.com
and strategic engineering have enabled operators to sanction their deepwater develop- POSTER EDITOR
ments. In the “Top Offshore Projects” webcast, sponsored by Bentley Systems, Calpipe E. Kurt Albaugh, P.E. Kurt.albaugh@yahoo.com
Industries, LLC, and Wood, the Offshore editors select the projects that have successfully EDITORIAL CREATIVE DIRECTOR
Jason Blair
been re-engineered and restructured to succeed in today’s marketplace, and will the
PRODUCTION MANAGER
describe the new technologies and engineering methods that have enabled these projects Shirley Gamboa shirleyg@pennwell.com
to move forward. MARKETING MANAGER
https://www.offshore-mag.com/webcasts/offshore/2019/01/top-offshore-projects-leading- Myla Lowrance mylal@pennwell.com
strategies-in-capital-efficiency.html
AUDIENCE DEVELOPMENT MANAGER
NEW MAPS, POSTERS, AND SURVEYS Emily Martin emilym@pennwell.com

• 2019 Status of US Gulf of Mexico Deepwater Discoveries OFFSHORE EVENTS

• 2019 Gulf of Mexico Map David Paganie (Houston) davidp@pennwell.com
• 2018 Environmental Drilling and Completion Fluids Survey Gail Killough (Houston) gailk@pennwell.com

• 2018 Worldwide Survey of Floating Production, Storage and Offloading Units

• 2018 MWD/LWD Services Directory
• 2018 World Survey of Stimulation Vessels www.pennwell.com
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 • COMMENT
Priorities shift as industry
enters growth mode
DAVID PAGANIE, CHIEF EDITOR
AS THE NEW year plans unfold and despite
the late 2018 dip in oil prices, offshore spend-
ing is set to accelerate, and levels may even
outpace onshore shale activities. This is pri-
marily due to expected cuts in shale budgets
in response to the oil price decline in 4Q 2018,
while most operators have already moved on
from offshore cyclical cost-cutting. Nevertheless, offshore
players are optimistic as the business environment continues
to improve.
A focus on capital discipline will continue to be a priority
as the industry aims to maintain the efficiencies that were
gained during the downturn. Rising drilling rig day rates,
which are occurring in select markets and for select rig
classes, and concerns of service cost inflation, will test re-
solve. But many industry analysts project that measures put
in place during the downturn will enable most companies
to withstand market volatility.
Meanwhile, recruitment is back on the agenda, and digi-
talization is a leading industry priority. These are some of
the noteworthy findings of DNV GL’s annual industry bench-
mark study, titled “A Test of Resilience.” The survey of senior
oil and gas professionals, conducted in 4Q 2018, found 76%
of respondents are confident in the industry’s growth pros-
pects for this year. This is up from 63% a year ago, and more
than double the levels recorded in 2016 and 2017. Respon-
dents in Brazil (95%), China (89%), and the US (85%) are the
most optimistic for this year.
This trend in confidence should lead to an increase in
spending. The survey finds that 67% of respondents believe
that more large, capital-intensive projects will be approved
this year than in 2018. Moreover, 70% of respondents are
looking to maintain or increase capital expenditure this year,
up from 66% in 2018 and 39% in 2017. About 65% plan to
maintain or increase operating expenditure, up from 58% in
2018 and 41% in 2017.
Survey respondents (60%) also expect to increase spending
this year in the area of digitalization. The top three priorities
within the industry’s digitalization agenda all relate to data
sharing, integration, and access (cloud-based applications,
data platforms, and data sharing between organizations).
About 67% of respondents say their company will prioritize
the quality and availability of data in this year, according to
the survey results.
8
1902OFF06-22.indd 8
Other market segments that should benefit from this
improving spending outlook are deepwater and subsea,
according to Mark Adeosun with Westwood Energy. The firm
expects global field development spending to reach $115
billion this year, up from an average of $81 billion in 2017
and 2018. The subsea sector was awarded 129 trees in 4Q
2018, which is more than double the count recorded in 2016.
Westwood forecasts 177 trees to be awarded during the first
half of this year and 177 during the second half. Expenditure
on floating production systems is expected to improve as
well, from just under $8 billion in 2018 to $21 billion in 2019.
Regionally, Latin America is forecast to take a large share of
offshore field development expenditure in this year, account-
ing for 28% of global spend. See Mark’s complete field devel-
opment forecast beginning on page 46.
Meanwhile, drilling contractors will continue to prioritize
consolidation and innovation as the market emerges from
the downturn. At the end of 2017, 174 companies controlled
1,033 rigs, of which 36.5% were managed by the top 10 drilling
contractors (based on the number of rigs managed), accord-
ing to Cinnamon Edralin with IHS Markit. By the end of 2018,
the fleet was down to 973 units, and the number of rig con-
tractors had declined to 157. The top 10 contractor’s market
share improved to 40.0% of the fleet. See Cinnamon’s full Top
10 Offshore Drilling Contractors report and market outlook
beginning on page 23.
Transocean, under contract with Chevron, is fitting a
newbuild drillship with technology that could unlock the
next prolific trend in the US Gulf of Mexico. The rig will be
the first floater to be equipped with a 20,000-psi BOP for use
in high-pressure projects. The rig will feature dual 20K BOPs,
net hook-load capacity of 3 million pounds, 165-ton active
heave compensating crane, and an enhanced dynamic po-
sitioning system. Offshore managing editor, Bruce Beaubouef,
reviews the latest drilling rig technologies beginning on page
28. •
To respond to articles in Offshore, or to offer articles for publication,
contact the editor by email (davidp@pennwell.com).
WWW.OFFSHORE-MAG.COM | OFFSHORE   FEBRUARY 2019
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  DATA

Worldwide offshore rig WORLDWIDE OFFSHORE RIG COUNT AND UTILIZATION RATE
JANUARY 2017 – DECEMBER 2018
count and utilization rate
December was yet another month in 1,000 100
which the offshore rig market was nearly
unchanged across every category. The 900 90

Fleet utilization rate, %

total number of jackups, semis, and drill-
800 80
ships under contract only dropped by one

Number of rigs
unit to 431 rigs, meaning the category is 700 70
still hovering around the same point as it
has been since August. Meanwhile, only 600 60
one rig has been removed from the global
fleet, taking the total supply to a total of 500 50
764. As a result, rig utilization remained ef-
fectively the same at 56.4% in December. 400 40
Nearly the same can be said for the num-
ber of rigs working, which had a one-unit 300 30
Jan. Mar. May July Sept. Nov. Jan. Mar. May July Sept. Nov.
decline this month to a total of 400. 2017 2018
– Justin Smith, Petrodata by IHS Markit
Total utilization Total supply Total under contract Working
Note: Rig types included are jackups, semis, and drillships
Source: IHS Markit RigPoint

Offshore rig revival will UTILIZATION RECOVERY FOR FLOATERS STARTS IN 2019
gain momentum in 2019 Floater supply and demand 297
The offshore rig owner fraternity – bruised 300 273 281 272
and battered after concurrent years of Marketed supply* 243 257 258 Forecast
250 225 238 221 223 223
painfully low utilization rates – can final- 198
214
210
223 222
205 213
190 193 197
ly see the silver lining around those dark 200 195
Rig years

181 176 178 188

172 169 169 177 195 179 187 187
clouds as more than $100 billion worth 157 149 157 164 167 156 164
150 135 135 140 137
of offshore projects are expected to be 122 123
sanctioned in 2019. And this greenfield in- 100
vestment level looks likely to be repeated 50 Demand
in 2020, and yet again in 2021.
When faced with the challenge of lower 0
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022
oil prices, the offshore industry responded
by cutting costs and sanctioning fit-for-
purpose work scopes. Unit price reduc- Floater utilization
Marketed
tions, efficiency gains and scope reduc- 100 87% 85% 88% 87% 86% 89% 88% 86% 86% 87% 92% 87% 82% utilization* 84% 84%
79% 80% 83% 77% 81%
tions have combined to slash breakeven 75 86% 84% 80% 84% 70% 67%
77% 73% 77% 81% 82% 78% 81% 80% 62% 63%
costs for both deepwater and shallow-wa- 70% 66% 69% 72% 69% 69%
62% 66%
ter fields by more than $30/bbl from their 50 53% 54%
44% 49% Total utilization
2013-14 levels. The industry appears to 25
have ridden out the storm of the latest
downturn and is ready to start a new wave 0
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022
of project sanctioning.
– Oddmund Føre, VP, Rig research,
Rystad Energy SANCTIONED CAPITAL EXPENDITURE
(YEAR OF FID) BY DEVELOPMENT TYPE
160 100
Artificial Island Floating
More project sanctions Extended Drilling
Fixed
Tieback
To Shore
90
expected in 2019 120
Fixed and Floating Greenfield FIDs
80
Last year 51 offshore projects were sanc-
Number of FIDs

tioned, lower than in 2017 but still signifi- 70

Capex ($bn)

cantly up on 2015/2016. Dr. Keith Myers,

President, Research at Westwood Global 80 60
Energy forecasts up to 90 potential final
investment decisions this year. This will 50
bring some relief to the hard-pressed
supply chain still struggling with overca- 40 40
pacity in most asset classes and many
suppliers struggling with commercial 30
terms. This should also lead to increased
contracting in 2019 but with limited price 0 20
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
inflation. Source: Westwood Sectors

10 WWW.OFFSHORE-MAG.COM | OFFSHORE FEBRUARY 2019

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 Month After Month.
Year After Year. Only the committed and information-hungry have gained
the experience to help you survive over 60 years of
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E STA B L I SH E D I N 1 9 5 4

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9/28/17 AM
4:21 PM

 GLOBAL E&P
NORTH AMERICA/CARIBBEAN SEA
Eni is set for outright ownership of the Oooguruk oilfield
offshore Alaska after agreeing to acquire the 70% operated
stake held by Caelus Natural Resources Alaska, subject to
approvals. The field is in the Beaufort Sea, 5 km (3 mi) from
the North Slope and was developed via an artificial gravel
island with dry trees in 1.5 m (4.9 ft) water depth. It currently
produces 10,000 b/d of oil from 25 producer and 15 gas/water
injector wells.
•••
Hokchi Energy has contracted Sapura Energy to fabricate and
install a central wellhead platform and a satellite platform for
the Hokchi field development in the Mexican sector of the
Gulf of Mexico. Both will be connected to the onshore Kokchi
Paraiso processing facility.
Sapura was also due to start drilling in the current quarter
for Eni’s Block Area 1 development offshore Mexico using the
jackup Pioneer. The program comprises 15 firm plus 13 optional
wells.
•••
BP has sanctioned two new gas field developments offshore
Trinidad and Tobago. The Cassia Compression project, which
will produce low-pressure gas from fields already onstream
in the Greater Cassia area, involves construction of a new
1.2-bcf/d platform, Cassia C, at yards in Trinidad and Mexico.
This will be installed 57 km (35 mi) offshore southeast Trinidad
with incoming gas compressed and exported through the
existing Cassia B facilities. The 400-MMfcf/d Matapal devel-
opment calls for a three-well subsea tieback to the Juniper
platform – first gas from the two new developments should
flow respectively in and 2021 and 2022.
SOUTH AMERICA
ExxonMobil has notched its tenth oil discovery in the deep-
water Stabroek block offshore Guyana. The Pluma-1 well,
spudded by the drillship Noble Tom Madden last November,
penetrated 37 m (121 ft) of hydrocarbon-bearing reservoir.
The location is 27 km (17 mi) south of the Turbot discovery
well in 1,018 m (3,340 ft) of water. This latest find pushed
estimated recoverable resources from the block above 5 Bboe.
Elsewhere off Guyana, Tullow Oil and partners Total and
Eco (Atlantic) expect to drill their first well in the Orinduik
block in late spring, targeting the turbidite Jethro-Lobe pros-
pect in 1,350 m (4,429 ft) of water. CGX Resources has con-
tracted the Rowan jackup Ralph Coffman to drill a well in
relatively shallow water during 2Q.
•••
Spectrum has been acquiring a 10,700-sq km (4,131-sq mi) 3D
seismic survey over the Potiguar basin offshore Brazil. This
will cover blocks awarded under the country’s recent 15th
licensing round and open blocks due to be offered under the
17th round next year.
12
1902OFF06-22.indd 12
JEREMY BECKMAN
LONDON
WEST AFRICA
Total will be at the forefront of frontier deepwater exploration
across the region this year, according to Wood Mackenzie.
The company’s Brulpadda-1 AX well in block 11b/12B off
South Africa, spudded recently by the drillship Deepsea Stavan-
ger, is thought to be targeting more than 1 Bbbl of resources.
Also on Total’s line-up are the Venus-1 well in 3,000 m (9,842
ft) of water – a record depth for Africa – offshore southern
Namibia and potentially a deeper-water well on block 48 off
Angola.
The company has expanded its deepwater acreage position
offshore northwest Africa by signing E&P agreements for
blocks C15 and C31 offshore Mauritania, in both cases taking
a 90% operated stake. Total plans to drill its first well on the
country’s deep offshore block C9 later this year.
•••
BP and its partners have taken a final investment decision
(FID) to pursue Phase 1 of the Greater Tortue Ahmeyim project
offshore Mauritania and Senegal. This will produce gas and
condensate from a deepwater production system connected
to an FPSO, exporting to an FLNG vessel at a nearshore hub
on the two countries’ maritime border. Partner Kosmos Energy
expects the facilities to deliver around 2.5 MMt/r of LNG for
global export, with some of the gas reserved to meet domestic
demand. First gas is scheduled for 2022.
•••
Production has started from Egina, the second deepwater
oilfield development in Oil Mining Lease 130 offshore Nigeria.
The 200,000-b/d capacity Egina FPSO, moored in 1,600 m
(5,249 ft) water depth, is the largest that operator Total has
commissioned to date, and at peak should provide 10% of
Nigeria’s oil production. Six of the vessel’s 18 topsides modules
were constructed locally and integrated at Lagos. Later this
year Total and its partners expect to take an investment de-
cision on a subsea tieback of the Preowei discovery to the
FPSO.
Egina and Preowei are both in OML 130. (Courtesy Total)
WWW.OFFSHORE-MAG.COM | OFFSHORE FEBRUARY 2019
2/4/19 10:56 AM
 JEREMY BECKMAN
LONDON
•••
BP and Sonangol will likely commit by mid-year to develop
the Platina field in block 18 offshore Angola via a subsea tie-
back to the Greater Plutonio FPSO. At the same time, they
agreed to an extension for the production licenses for the
Greater Plutonio area until 2032. Platina was discovered in
1,300 m (4,265 ft) of water in 1999. In addition, the partners
are in talks on exploration of five further offshore blocks.
Eni has discovered 170-200 MMbbl of light oil with its Afoxe
well in the southeast of Angola’s block 15/06. The location, in
780 m (2,559 ft) water depth, is 120 km (75 mi) offshore and
20 km (12 mi) west of the company’s earlier Kalimba-1 dis-
covery. Collectively these fields could provide 400-500 MMboe
for a new cluster development, the company said, supple-
mented potentially by results from further drilling planned
later in the year in this area.
EASTERN EUROPE
Gazprom has been commissioning Russia’s first floating storage
and regasification unit (FSRU). The Marshal Vasilevskiy, moored
in 19 m (62 ft) of water, 5 km (3.1 mi) from the Kaliningrad
coast in the Baltic Sea, has capacity to transport 174,000 cu
m (5,145 bcf ) of LNG – following regasification, this will be
supplied as a gas through the local transmission system via a
new 13-km (8-mi) pipeline.
The FSRU Marshal Vasilevskiy berthed offshore Kaliningrad.
(Courtesy Gazprom)
•••
Lukoil has signed co-operation and financing agreements
with JSC KazMunay Gas for the Zhenis project in the Kazakh
sector of the Caspian Sea, 80 km (50 mi) from Aktau. Negoti-
ations are under way to progress the arrangement to explo-
ration and production.
MEDITERRANEAN SEA
Repsol has been acquiring seismic over the Ioannina block
offshore Greece, with final-stage acquisition over the Aitoloa-
karnia block to follow. Partner Energean has commissioned
a smaller-scale 3D survey to the north over its acreage offshore
FEBRUARY 2019   OFFSHORE | WWW.OFFSHORE-MAG.COM13
1902OFF06-22.indd 13
GLOBAL E&P •
Montenegro ahead of a drill-or-drop decision on its licenses
in 2020.
•••
Eni has been drilling for gas in a carbonates structure in Egypt’s
Nour North Sinai Offshore concession in the East Nile Delta,
50 km (31 mi) from land. BP and Mubadala Petroleum recently
joined as farm-in partners. UAE-based Dana Gas’s Merak
deepwater well, scheduled to spud later this year on Egypt’s
Block 6 North El Arish concession, will reportedly also target
hydrocarbons in a carbonate structure.
Petrobel, a joint venture between IEOC and EGPC, has
contracted Saipem to lay a second 30-in. export pipeline for
gas from the ultra-deepwater Zohr field offshore eastern Egypt.
Saipem will deploy the Castorone for the campaign with other
vessels from the company’s fleet installing associated subsea
lines connected to various wells.
•••
The drillship Stena IceMAX has spudded the first of two
exploratory wells for ExxonMobil and partner Qatar Petroleum
in block 10 offshore southern Cyprus. Water depth is 1,973 m
(6,473 ft).
MIDDLE EAST
Eni has entered a memorandum of understanding with Bah-
rain’s National Oil and Gas Authority to explore block 1 offshore
northern Bahrain. The concession covers an area of more than
2,800 sq km (1,081 sq mi) in water depths ranging from 10-70
m (32-230 ft).
Nearby, Abu Dhabi’s government has awarded the two
offshore blocks offered under the emirate’s first international
licensing round to Eni (70%) and Thailand’s PTTEP (30%).
They expect to jointly invest more than $230 million on ex-
ploring for oil and gas and appraisal of existing fields on the
blocks over the nine-year exploration phase. If successful, the
lease would be extended to 35 years, with state oil company
ADNOC potentially backing into 60% for any subsequent field
development.
•••
Norwegian independent DNO has handed over operatorship
of block 8 offshore Oman to the country’s Ministry of Oil and
Gas and state-owned Oman Oil Company Exploration and
Production (OOCEP). The Bukha and West fields within the
blocks have so far delivered 35 MMbbl of oil and 285 bcf of
gas: OOCEP subsidiary Musandam Oil and Gas Company is
the new operator.
AUSTRALIA
Shell has delivered first production through the giant Prelude
floating LNG vessel in block WA-44 L offshore Western Aus-
tralia. The vessel separates and liquefies gas from the Prelude
and Concerto fields, 475 km (295 mi) northeast of Broome, to
produce LNG, LPG, and condensate, which are all offloaded
to tankers. •
2/4/19 10:56 AM

• OFFSHORE EUROPE
VÅR OUTLINES GOALS FOR BALDER X
Vår Energi, the new E&P company formed from the merger of
Eni Norge and Point Resources, was among the successful
bidders in the latest license round. One of its immediate prior-
ities is a NOK20-billion ($2.35-billion) redevelopment of the
Balder and Ringhorne fields
in the Norwegian North Sea,
formerly operated by Exxon-
Mobil: recent re-mapping of
the area indicated potential
net untapped resources of 170
MMbbl of oil. Aker Solutions
is conducting front-end engi-
neering design (FEED) for the
new Balder X project, focusing
on the scope of work needed
to extend the life of the Jotun
FPSO toward 2045. Vår antic-
ipates drilling 26 new produc-
tion wells on Balder and Ring-
horne, and during 4Q will Subsurface ‘view’ beneath the
likely submit a revised plan for Gullfaks complex. (Courtesy
development and operation. Equinor)
Austria’s OMV is evaluating circular and ship-shaped FPSOs
for its Wisting oilfield project in the southern Barents Sea, where
the NPD assesses recoverable reserves at around 440 MMbbl.
Recent appraisal drilling has been designed to improve under-
standing of the shallow Wisting reservoir. Based on the findings
from this and subsurface optimization studies OMV envisages
a subsea production system comprising 19 producer and 14
injector wells. Final concept selection should follow in 2020.
In the Norwegian North Sea, Equinor and its partners will
look to extract a further 17 MMbbl from the Gullfaks field’s
Shetland Group tight carbonate reservoir which lies above the
main reservoir. To date they have spent more than $117 million
on development drilling in this formation since a well test in
2012 demonstrated its potential for oil. More recent testing
showed that water injection could further boost recovery, and
the new program will involve a change in drainage strategy
from the present depressurization to injection, with seven new
horizontal wells drilled from the Gullfaks facilities.
UK BOOST FOR DECOMMISSIONING R&D
Britain’s new National Decommissioning Centre (NDC) has
opened in Newburgh, Scotland. The $48-million complex, sup-
ported by the Oil and Gas Technology Centre and the University
of Aberdeen, will bring together industry specialists and aca-
demics working to reduce the overall cost of UK North Sea
decommissioning by 35%, a target set by the Oil & Gas Authority
in 2016. Priorities include R&D into alternate approaches to
standard decommissioning practice and examining ways of
extending field/asset life, drawing on the university’s capabilities
in predictive modeling, environmental assessment, and decom-
missioning economics.
14
1902OFF06-22.indd 14
JEREMY BECKMAN
LONDON
IRISH EXPLORERS IN DRILL MODE
Irish independents are looking to attract partners to co-finance
frontier exploration drilling off western Ireland over the years
ahead. Europa Oil & Gas aims to start site surveys this summer
over three prospects the company has identified on its acreage,
with a view to drilling all three from 2020 onwards. The targets
are Kiely East (280 MMboe) and Edgeworth (225 MMboe) in
Porcupine basin frontier exploration licenses 2/13 and 1/17;
and what the company describes as its flagship project, the
multi-tcf Inishkea gas prospect, in shallow water in license
option 16/20 in the Slyne basin off northwest Ireland. The lo-
cation is close to the producing Corrib gas field and its associated
pipeline infrastructure. Farm-in discussions are in progress for
all the licenses, with a positive result from the nearby Nex-
en-CNOOC/ExxonMobil well on the Iolar prospect this summer
likely to de-risk Kiely East and Edgeworth.
Location of Azeire’s frontier exploration licenses offshore western
Ireland. (Courtesy Azeire)
Ireland’s government has approved applications by Azeire
to convert one license option in the eastern Porcupine basin to
a frontier exploration license (FEL), and to extend another FEL
in the basin by two years. Azeire claims to be one of the largest
exploration acreage holders offshore Ireland with 100% stakes
in areas covering 5,708 sq km (2,204 sq mi). It plans to work up
drillable prospects across both concessions.
NORWAY SUSTAINING EXPLORATION MOMENTUM
Norway’s Petroleum and Energy Ministry has offered a record
83 new production licenses under the country’s 2018 Pre-defined
Areas round. The bids submitted (the awards are shared among
33 companies) suggest strong remaining potential in areas of
known geology, said Torgeir Stordal, the Norwegian Petroleum
Directorate’s Exploration Director. The awards comprise 37
new licenses in the North Sea, 32 in the Norwegian Sea, 44 in
the Barents Sea, and 18 acreage additions to existing conces-
sions. However, there are only three commitment wells com-
pared with five under APA 2018. •
WWW.OFFSHORE-MAG.COM | OFFSHORE   FEBRUARY 2019
2/4/19 10:56 AM
 BRUCE BEAUBOUEF
HOUSTON
BP announces Atlantis field expansion,
reaffirms commitment to Gulf
BP SAYS IT has approved a major expansion at the Atlantis field
in the US Gulf of Mexico and has also identified significant additional
oil resources that could create further development opportunities
around the production hubs it operates in the region.
BP says that the $1.3-billion Atlantis Phase 3 development is the
latest example of its strategy of growing advantaged oil production
through its existing production facilities in the Gulf. The company
says that approval for this latest development comes after re-
cent breakthroughs in advanced seismic imaging and reservoir
characterization revealed an additional 400 MMbbl of oil in place
at the Atlantis field.
Application of the same technology and analysis has now iden-
tified an additional 1 Bbbl of oil in place at the Thunder Horse field.
Elsewhere, two new discoveries near the Na Kika production facility
could provide further tieback development opportunities.
Bernard Looney, BP’s Upstream chief executive, said: “BP’s Gulf of
Mexico business is key to our strategy of growing production of
advantaged high-margin oil. We are building on our world-class
position, upgrading the resources at our fields through technology,
productivity and exploration success.”
Looney added: “These fields are still young – only 12% of the
hydrocarbons in place across our Gulf portfolio have been produced
so far. We can see many opportunities for further development,
offering the potential to continue to create significant value through
the middle of the next decade and beyond.”
Atlantis Phase 3 will include the construction of a new subsea
production system from eight new wells that will be tied into
the current platform, 150 mi south of New Orleans. Scheduled to
come onstream in 2020, the project is expected to boost production
at the platform by an estimated 38,000 boe/d gross at its peak. It will
also access the eastern area of the field where the advanced imaging
and reservoir characterization identified additional oil in place.
Starlee Sykes, BP’s regional president for the Gulf of Mexico and
Canada, said that: “Atlantis Phase 3 shows how our latest technol-
ogies and digital techniques create real value – identifying oppor-
tunities, driving efficiencies and enabling the delivery of major
projects. Developments like this are building an exciting future for
our business in the Gulf.”
The company says that its proprietary algorithms enhance a
seismic imaging technique known as Full Waveform Inversion
(FWI), allowing seismic data that would have previously taken a
year to analyze to be processed in only a few weeks. Application of
this technology and reservoir characterization has now identified
a further 1 Bbbl of oil in place at the Thunder Horse field.
BP says that its development of leading seismic acquisition and
imaging systems is a result of sustained investment in technology
and high-performance computing. Following a successful field trial
at the Mad Dog field, further advanced seismic imaging with ocean
FEBRUARY 2019   OFFSHORE | WWW.OFFSHORE-MAG.COM15
1902OFF06-22.indd 15
GULF OF MEXICO •
BP’s Atlantis Phase 3 project calls for construction of a new subsea
production system from eight new wells that will be tied into
the current platform. (Courtesy BP)
bottom nodes and its proprietary Wolfspar seismic acquisition
source is being planned for Thunder Horse and Atlantis to better
understand the reservoirs. Wolfspar uses ultra-low frequencies
during seismic surveys, allowing geophysicists to see deeper below
salt layers and enabling better planning of where to drill wells.
BP also announced two oil discoveries in the Gulf of Mexico, at
the Manuel and Nearly Headless Nick prospects.
The Manuel discovery is located on Mississippi Canyon block
520, east of the BP-operated Na Kika platform. The well encountered
oil pay in high-quality Miocene sandstone reservoirs. BP is expecting
to develop these reservoirs via subsea tieback to the Na Kika plat-
form. BP’s partner in the Manuel discovery is Shell, which holds a
50% working interest.
BP also has a stake in the Nearly Headless Nick discovery located
on Mississippi Canyon block 387, operated by LLOG. The well en-
countered oil pay in high-quality Miocene sandstone reservoirs and
is expected to be tied back to the nearby LLOG-operated Delta
House facility. BP’s partners in the Nearly Headless Nick discovery
include LLOG, Kosmos Energy Ltd, and Ridgewood Energy. BP
holds a 20.25% working interest.
Over the last five years, BP’s net production in the Gulf of Mexico
has increased by more than 60%, rising from less than 200,000 boe/d
in 2013 to more than 300,000 boe/d today. The company is currently
the top oil producer in the Gulf and anticipates its production
growing to around 400,000 boe/d through the middle of the next
decade.
The growth will be supported by recent project startups, including
Thunder Horse Northwest and Thunder Horse South expansions
and the Thunder Horse Water Injection project, as well as the ad-
dition of a second platform (Argos) at the Mad Dog field, which is
on budget and on schedule to come online in late 2021.
Future potential developments at BP’s offshore fields in the Gulf
include Atlantis Phase 4 and 5, further developments at Thunder
Horse, Na Kika subsea tiebacks and Mad Dog field extensions. •
2/4/19 10:56 AM

• SUBSEA SYSTEMS
TECHNIPFMC DETAILS EGINA’S SUBSEA PRODUCTION
SYSTEM
On Dec. 29, 2018, Total began production from the ultra-deep-
water Egina oil field, 150 km (93 mi) off Port Harcourt, Nigeria.
Located in water depths ranging from 1,400 to 1,750 m (4,593
to 5,741 ft), the field is estimated to contain reserves of 550
MMbbl.
Artistic rendering of the ultra-deepwater Egina oil field offshore
Nigeria. (Courtesy Total)
The project is based on a subsea production system con-
nected to Total’s largest FPSO to date, the Egina. The 330-m
(1,083-ft) long FPSO Egina has a storage capacity of 2.3 MMbbl
of oil. According to Total, the field will deliver 200,000 b/d of oil
at peak, equivalent to 10% of Nigeria’s total oil production.
TechnipFMC is responsible for the field’s 44-well full subsea
production system (SPS) and flexible piping.
In June 2013, Total awarded the company a contract worth
more than $1 billion that covered subsea trees and wellheads,
manifolds, installation tooling, flowline connection systems,
multi-phase meters, and associated control systems. At the
time of the order, it was the largest subsea project to date in
West Africa.    
In July 2013, the company received two contracts to supply
flexible piping. They covered the qualification and supply of 12
dynamic flexible jumpers ranging from 3.5 in. to 12.5 in. for oil
production, gas lift, water injection and gas export to connect
the single top tension risers to the FPSO. Also included were
two 20.5-in. unbonded flexible pipes as oil offloading lines
connecting the FPSO to the offloading buoy and associated
equipment. At the time, these were the largest flexible pipes
the company had manufactured to date. In the same month,
the company was awarded a contract to supply the steel tube
umbilicals.
In June 2016, TechnipFMC opened a subsea services workshop
in Onne, Port Harcourt. This support center functioned as the
service base, but fabrication also occurred in Norway and
Scotland. Engineering and construction for the subsea produc-
tion system were completed in Nigeria.
The first two of the eventual 44 subsea trees were delivered
in April 2016. Two months later, the company marked the first
two of Egina’s subsea trees to be fully completed in Nigeria.
In October 2017, the company’s six manifold modules were
installed at Egina. All were manufactured at the Aveon yard in
16
1902OFF06-22.indd 16
JESSICA STUMP
HOUSTON
Port Harcourt, with first steel cut in late 2013.
Discovered in 2003 in 1,600 m (5,249 ft) water depth, Egina
Co
is the second development on oil mining lease 130 following
the Akpo field, which started-up in 2009. Operator Total partners Vis
with Nigerian National Petroleum Corp., CNOOC, Sapetro, and
Petrobras on the lease.
Bo
SHELL HIRES SAIPEM TO ENHANCE BRAZILIAN AUV
Shell has awarded Saipem a license to develop technology for
FlatFish, a resident subsea autonomous vehicle designed to
perform complex inspections of subsea assets. This should be
qualified for commercial application by 2020.
FlatFish is a Brazil-
ian project previously
developed over a four-
year period by SENAI
CIMATEC in partner-
ship with DFKI, with
funding from the ANP
R&D program and
EMBRAPII.
Saipem plans to add The FlatFish is expected to be qualified
capabilities for riser in- for commercial application by 2020.
spection, data harvest- (Courtesy Saipem)
ing from subsea sen-
sors, contactless monitoring of cathodic protection systems,
and a ‘flying-hanging garage’ for launch/recovery and subsea
recharging/reprogramming of the FlatFish from offshore
platforms.
These enhancements will be supported by SENAI CIMATEC
which, along with Saipem do Brasil, entered the development
arrangement with Shell Brasil in December 2018.
SUBSEA INTEGRATION ALLIANCE GARNERS FIRST JOB
IN AUSTRALIA
Esso Australia Pty Ltd. has awarded Subsea Integration Alliance
EPCIC contracts for the West Barracouta gas project offshore
Australia. This is the first integrated subsea project for Subsea
Integration Alliance, a partnership between OneSubsea and
Subsea 7, in Australia.
The work scope includes engineering, procurement, con-
struction, and installation of two production wells. The wells
are in a water depth of approximately 45 m (148 ft) and will be
tied back to the Longford onshore gas plants. Copy
Project management and engineering will be provided by
OneSubsea and Subsea 7 from offices in Perth and Melbourne,
Australia. Offshore installation activities are scheduled for 2020.
The Subsea 7 scope includes project management, engineer- Sol
ing, procurement, construction, and installation of two produc- tec
tion wells and a single electrohydraulic umbilical from the unm
Barracouta platform to the West Barracouta drill center. cur
The OneSubsea scope includes the provision of two vertical
By
monobore on-wellhead production trees, wellheads, controls,
and installation and commissioning services. •
WWW.OFFSHORE-MAG.COM | OFFSHORE   FEBRUARY 2019
2/4/19 10:56 AM Ocean_
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1902OFF06-22.indd1 17
Ocean_OS_1902 2/4/19 10:56
1/17/19 AM
1:22 PM

• VESSELS, RIGS, & SURFACE SYSTEMS
OFFSHORE RIG MARKET RECOVERY STILL TO COME
While many thought the offshore rig market had “turned the corner”
in 2018, analyst Westwood did not since there were few, mostly
isolated areas of improvement.
RigLogix data show that 19 rigs were delivered in 2018, comprised
of 15 jackups and four semisubmersibles. As of Dec. 31, 2018, there
were still 112 rigs listed as under construction, including 75 jackups,
nine semis, 21 drillships, and seven tender-assist units. Construction
on the majority of these units is essentially completed and waiting
on acceptance from the rig owners.
Rig attrition has taken center stage within the past few years,
and that continues to be the case in today’s market, according to
Terry Childs, head of RigLogix. During 2018, the number of rigs
removed from the fleet hit an all-time high of 57. Since the downturn
began in September 2014, there have been 212 units taken out of
service through retirements, conversion to other modes, and to-
tal-loss accidents. In 2018, the split amongst rig types was jackups
(37), semis (14), and drillships (six).
As for rig utilization, jackups and drillships both enjoyed in-
F1: RIG UTILIZATION BY TYPE
65
Jackup Semi
60
55
% Utilization
53.4
50
46.1
45
41.7
40
35
Jan-18
Feb-18
Mar-18
Apr-18
May-18
Jun-18
Source: RigLogix
creases for the year, but the gains made for semis during the first
half of the year were erased in the final six months as utilization
fell by some 14% from 54.7% in June to just over 40% in
December.
There were several notable rig owner mergers and acquisitions
either announced or completed during the year. Borr Drilling
purchased Paragon Offshore and 24 jackups were removed from
the fleet. Then Borr purchased nine newbuild jackups from Jurong
Shipyard and KeppelFELS and began taking delivery of the rigs in
2018. Transocean purchased Songa Offshore’s floating rig fleet and
then purchased Ocean Rig toward the end of the year. Ensco and
Rowan also announced a merger that is expected to be completed
in 2019.
As for day rates, only two regions experienced noticeable gains
in 2018, Childs said. Rates for harsh-environment semis in the
18
1902OFF06-22.indd 18
JESSICA STUMP
HOUSTON
Norwegian North Sea rose from just under $200,000/d at the start
of the year to $290,000-$300,000/d.
In the US Gulf of Mexico, consistent 100% take-up of the
12-strong jackup fleet pushed day rates for some long-legged units
up by $20,000 or more to $85,000. Elsewhere, rates remained es-
sentially static as rig supply continued to exceed demand.
As for drillships, Childs cited the recent Chevron hire of one of
Transocean’s new ultra-deepwater drillships for a program in the
US Gulf of Mexico. The vessel’s features include what is said to be
the world’s first 20,000-psi BOP system. In this case, the day rate is
around $454,000, although had the contract been signed during
the peak period of 2011-2013, it likely would have exceeded $700,000,
Childs claimed.
Most rig markets remain oversupplied, so there seems to be
little chance of a substantial rate improvement. But in markets
where rig supply and demand are tighter, rigs differentiated by key
features will likely command higher rates.
In conclusion, the wheels for a recovery are in motion. Westwood
believes as the year progresses that utilization and day rate increases
are coming, but it will happen later rather than sooner. In the
meantime, the market momentum will hopefully continue to build,
with visible signs of wholesale improvement emerging in the
Drillship second half of the year, according to Childs.
60.7
SEISMIC VESSELS COMPLETE TANDEM
DRYDOCKING AT DSAM
Recently, the Oceanic Sirius and Oceanic Vega completed a round-
50.5 the-clock, 10-day maintenance program at Damen Shiprepair
Amsterdam (DSAm). For eight of those days the two 106-m (348-ft)
vessels were in the yard’s 250-m (820-ft) drydock no.4 in a tandem
arrangement, to maximize the efficient use of resources.
The twin SX120 type seismic research vessels are owned by
CGG Eidesvik Ship Management AS, a joint venture between Ei-
40.4 desvik Offshore and CGG.
The primary reason for their visit to DSAm was to have a series
of repairs and upgrades as well as their hulls cleaned and repainted.
Jul-18
Aug-18
Sep-18
Oct-18
Nov-18
Dec-18
The repairs and upgrades included maintenance on the propeller
nozzles of both vessels and, by tenting the area around the pro-
pellers, DSAm was able to undertake the work without interrupting
or delaying the paintworks. This helped minimize valuable time
spent at the yard. •
The Oceanic Vega (left) and Oceanic Sirius (right) at Damen
Shiprepair Amsterdam. (Courtesy Damen)
WWW.OFFSHORE-MAG.COM | OFFSHORE   FEBRUARY 2019
2/4/19 10:56 AM AFGlo_
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 BRUCE BEAUBOUEF
 DRILLING & PRODUCTION HOUSTON

Equinor advances its digitalization strategy

EQUINOR REPORTS that it is moving forward with its digi-
talization strategy with great success, particularly with regard
to enhancing production and improving drilling operations.
On the production side, the company says that its newly
formed digital operations centers have enabled the company
to create higher value, improve safety, and reduce emissions
from its installations on the Norwegian continental shelf (NCS)
have led to good results.
In early January, two centers were formally opened at Sandsli
in Bergen by the petroleum and energy minister, Kjell-Børge
Freiberg.
Equinor has set a goal of increasing value from NCS fields
by more than $2 billion from 2020 to 2025, with the help of the Equinor official Egil Hustvedt demonstrates the digital twin of the
digitalization centers. Aasta Hansteen field. (Photo: Ole Jørgen Bratland/Equinor ASA)
New this year is that monitoring of the energy consumption
to reduce CO2 emissions from NCS operations will be improved
by support of the digital centers. By 2021, all Equinor fields on
the NCS will be supported by manned onshore centers in Bergen,
Stavanger, and Stjørdal.
Arne Sigve Nylund, Equinor’s executive vice president for
Development and Production Norway, said: “So far, we see
higher production and earnings from the Grane, Gina Krog and
Åsgard fields, which have been supported by the integrated
operations support center (IOC) since September. After that
the Aasta Hansteen and Norne fields have also been connected
to the center. This marks that we have just started phasing in
our 40 installations to the IOC, revealing a great potential.” Equinor says that it is stepping up its use of wired drill pipe to
“The good results are achieved by production optimization, acquire subsurface real-time data during drilling operations.
improved condition monitoring and operations support for safe (Photo courtesy IntelliServ)
offshore operation. IOC will also be relevant for our onshore
installations and international activities,” Nylund added. pected to save $31.7 million per year.
Equinor says that the IOC center will be central in reducing Kjetil Hove, head of operations technology on the NCS, said:
CO2 emissions from the NCS. The company says it has imple- “This is a completely new way of working and represents one
mented more than 300 energy efficiency measures on NCS of the biggest changes we have made in petroleum technology
installations from 2008 and up to the present, reducing annual and geology during the last 20 years. The GOC will utilize new
CO2 emissions by almost 1.6 million tonnes so far. The company technology and help form a digital future, where tasks are carried
aims to reduce CO2 emissions by 3.2 million tonnes per year out and experience gained and shared in smart ways.”
by 2030. And, Equinor is advancing its digital strategy with other
“We have set ambitious goals for changing and transforming drilling technologies. The company recently announced that it
the NCS to maintain high value creation and low emissions for is stepping up its use of wired drill pipe to acquire subsurface
the next decades. We have improved our operating efficiency, real-time data during drilling operations, in line with the cor-
increased production, reduced our CO2 emissions and developed porate digitalization strategy and to prepare for automated
a highly profitable project portfolio. Digitalization, innovation drilling.
and use of new technology will allow us to recover resources NOV and Schlumberger have been awarded corporate frame
that are not profitable now,” says Nylund. agreements for global deliveries of wired drill pipes to Equinor.
The other center, the Geo Operations Centre (GOC), will Both suppliers use solutions from IntelliServ, which is owned
work to ensure more efficient and better geoscience control of by NOV and Schlumberger.
drilling operations as well as higher cost saving and personnel The wire inside the drill pipe allows high-speed data transfer.
safety. Monitoring and control of offshore well path drilling will The signals transmitted through the drill pipe are estimated to
be moved from offshore installations and the various onshore be 10,000 times faster than the pressure waves of the drilling
units to a joint geoscience operations center. The GOC is ex- mud in conventional drill pipes. 

20 WWW.OFFSHORE-MAG.COM | OFFSHORE FEBRUARY 2019

1902OFF06-22.indd 20 2/4/19 10:56 AM


Pending regulation expected to
have important ramifications for
decommissioning offshore Brazil
LUCIANA VIANNA PEREIRA, ROSSI E WATANABE ADVOGADOS
THE BRAZILIAN MARKET is currently operating under the
expectation of a new regulation to be enacted by the country’s
national petroleum agency. The regulation says that the decom-
missioning of offshore structures shall be treated on a case-by-case
basis, and the agency will consider the specifics of each project
to be assessed. The expectation is that the regulation will set the
boundaries of the case study to be jointly evaluated by all three
competent authorities: the Brazilian Navy, the Brazilian Petroleum
Agency (ANP), and the Brazilian Environmental Protection Agency
(IBAMA). The assessment by the authorities of the decommis-
sioning plan will not be unified, but simultaneous and based on
one single document; and its boundaries, assumptions, and
content will have been approved by all three authorities.
The new regulation is expected to clarify initial doubts about
best decommissioning practices – for example, whether a full or
partial removal of the structures from the sea is best; or whether
it is better to maintain a structure on the seabed. The regulation
stipulates that all relevant environmental, social, and economic
aspects of any given project shall be contemplated in the decom-
missioning plan.
In this sense, from the environmental perspective, the oil
company planning the decommissioning project will be required
to assess and evaluate all relevant concerns regarding the impact
of the sun coral and other invading species in the process; the
final and adequate destination of solid wastes generated by the
decommissioning; and the containing measures to avoid accidents
resulting therefrom, among other aspects.
A concern that remains is that the timeframe for evaluation
of any given decommissioning plan by each authority will not be
the same, which may still result in project uncertainty that will
need to be managed by the market. The revision process will also
be exposed to the scrutiny of the third (or most properly, the
fourth) actor in the process: the Public Attorney.
In addition, the recent statement by the ANP that the decom-
missioning projects will be treated together with the projects for
economic exploitation of mature fields has generated some
concerns. One of these concerns is that the agency may potentially
delay the approval of a decommissioning project or even reject
it if, for example, it understands the field is still viable.
Other questions still apply in relation to the cost of a project.
The costs for the decommissioning are high and the disbursement
for the decommissioning occurs at a time in which the project
FEBRUARY 2019   OFFSHORE | WWW.OFFSHORE-MAG.COM21
1902OFF06-22.indd 21
REGULATORY PERSPECTIVES •
no longer generates the high revenues it used to. The exploitation
of mature fields is generally conducted by smaller companies
with lower financial capacity to support those costs and the risks
associated with it. We still do not see in Brazil (in the same way
as it happens abroad) a broader discussion with respect to the
sharing of the decommissioning costs among the actors involved
in the life of the field – sharing or assignment of liability between
assignor and assignee of the rights to exploit the field, for example.
Comparatively, in the mining sector, the recently enacted Federal
Decree No. 9,406/2018 aimed at dealing with this issue by requiring
that the economic plan of the mine (which is prepared at the
beginning of the project) should include the mine closure plan,
which, in turn, should address the environmental recovery of the
area; the decommissioning of installations and equipment; the
monitoring and follow-up of the systems for disposition of solid
wastes; and the aptitude and purpose of future use of the area.
Another matter that is still yet to be addressed – perhaps the
most sensitive matter – is that whatever alternative is studied
and adopted by the oil company – removal of all or part of the
structures, or their maintenance on the seabed – there is con-
sensus that the company will be obliged to monitor the structures
and risks related to the abandonment. However, for how long
the environmental monitoring will be needed is still in doubt.
On the one hand, the ANP and IBAMA seem to recognize that it
is not possible to oblige the company to monitor its structure
forever. On the other, the discussions on the statute of limitation
of the obligation to indemnify for environmental damages – the
theory strongly defended by the Public Attorney that is currently
under trial by the Brazilian Supreme Court of Justice in the Ex-
traordinary Appeal No. 852475 – is still to be defined. Also, the
matter will hardly be addressed in the new regulation or likely
be dealt with in a way that will give sufficient certainty to the
investors.
Therefore, despite the importance and relevance of the new
regulation on decommissioning currently under discussion at
the ANP with the support of the Brazilian Navy and IBAMA, it is
a fact that the most sensitive issues are still to be resolved and
will likely only be resolved with the maturity of the decommis-
sioning projects to be implemented. In this sense, the Petrobras
projects for decommissioning that are currently in progress and
being discussed with the authorities shall define the standards
and patterns to be followed in the matter. •
2/4/19 10:56 AM
 • OFFSHORE WIND ENERGY
SENER TO PARTICIPATE IN KINCARDINE PROJECT
The engineering and technology group SENER will be involved
in a large floating offshore wind farm that COBRA is building
15 km offshore from the Scottish
coast of Aberdeen.
SENER’s work will range from
supervising the manufacture of the
floating platforms to analyzing the
technical feasibility of assembling
the wind turbines, as well as provid-
ing technical assistance in monitor-
ing the plant.
SENER’s Renewables Director,
Miguel Domingo, said that “the pur-
pose of this collaboration between
COBRA and SENER is to liaise in
reducing costs for future floating The first floating platform
with 2 MW wind turbine
wind farms, as we consider this op- for the Kincardine (UK)
tion to be the most appropriate for Offshore Wind Project.
any location with adequate wind (Courtesy COBRA)
and where depth impedes a conven-
tional foundation.”
With a 50 MW rated capacity and fitted with a 2 MW turbine
and five other 9.525 MW turbines, the Kincardine project is
expected to be operational by 2020, making it the largest floating
offshore wind farm in the world.
ABS GRANTS AIP FOR TRANSPORT VESSEL
ABS has granted approval in principal (AIP) to Neptun Ship
Design for its Wind Turbine Transport Vessel design, the first
to support transporting parts for turbines greater than 9 MW.
The 178-m (584-ft) long Blue Azurit design allows wind turbine
manufacturers
to produce full
length welded
towers ready
for installation.
The energy-ef-
ficient vessel is
designed to
pick up com-
ponents direct The Blue Azurit design will enable wind turbine
from the sup- manufacturers to produce full length welded
towers ready for installation. (Courtesy ABS)
plier’s berth,
transport parts to an offshore harbor, or feed them to the in-
stallation vessel.
Wei Huang, ABS Director, Global Offshore, said that: “The
scale of offshore wind turbines continues to increase steadily,
offering greater efficiencies to the market. We are working with
Neptun to verify compliance with ABS Rules, as it strives to
deliver enhanced vessel capabilities supporting the wind in-
dustry’s continued growth, while increasing reliability and
efficiency.”
Gerald Hadaschik, Neptun Managing Director, “The ABS
22
1902OFF06-22.indd 22
extensive offshore industry experience made them the natural
choice to support this project. Blue Azurit will help the offshore
wind industry meet pressure to reduce costs, minimize project
risks, deliver higher reliability and support renewable energy
targets from new offshore wind nations.”
In granting this AIP, ABS conducted a preliminary engineering
plan review and considers, that the conceptual engineering is
feasible for the intended application and is, in principle, in
compliance with the ABS Rules for Building and Classing Off-
shore Support Vessels, 2018.
ABS’s previous experience with the offshore wind industry
included classification of Seajacks’ Scylla, the world’s largest
and most advanced wind farm installation and offshore con-
struction vessel, constructed by Samsung Heavy Industries in
South Korea. ABS says it is also playing a role in supporting the
development of innovative concepts for future floating wind
farm projects.
SIEMENS INTRODUCES OFFSHORE WIND TURBINE
Siemens Gamesa Renewable Energy (SGRE) has launched the
SG 10.0-193 DD, its first 10+ MW offshore wind turbine. Based
on the experience of its previous generations, the company says
that this newest wind turbine builds on proven technology for
maximum energy yield at all wind speeds.
“The new SG 10.0-193 DD combines experiences and knowl-
edge from five generations of proven direct drive technology in
one 10 MW turbine. A showcase of strong performance, swift
time-to-market, and low risk in the offshore wind energy market,”
says Markus Tacke, CEO of SGRE.
The company says that the 10 MW rating is made possible
through a larger generator diameter, building on the proven
SGRE Direct Drive generator technology.
By increasing the rotor diameter to 193 m, this new wind
turbine offers up to 30% more AEP than its predecessor, the SG
8.0-167 DD. Its 94-m long blades provide a swept area of 29,300
sq m. Each blade is almost the same length as one soccer field.
The technology on the offshore direct drive platform allows
for the re-use of most components from previous generations,
providing a short time to market. The prototype is expected to
be installed in 2019 with commercial market deployment ex-
pected in 2022. •
Siemens says that
the annual energy
production of one
SG 10.0-193 DD can
supply about 10,000
European households
with electricity.
(Courtesy Siemens)
WWW.OFFSHORE-MAG.COM | OFFSHORE   FEBRUARY 2019
2/4/19 10:56 AM

The Deepwater Conqueror, an ultra-deepwater
drillship, is contracted with Chevron U.S.A. Inc.
through 2021. (Courtesy Transocean)
Top 10 offshore drilling rig contractors
solidify their positions
Ensco holds lead spot for second year in a row
CINNAMON EDRALIN, IHS MARKIT
OFFSHORE DRILLING RIG contractors faced considerable
change in 2018, but the top 10 contractors (based on the num-
ber of rigs managed) solidified their leading positions and man-
aged to secure a larger portion of the global rig fleet. At the end of
2017, 174 rig managers controlled 1,033 rigs (Arctic, drill barges,
drillships, jackups, semisubmersibles, submersibles, and ten-
der-assists), of which 36.5% was managed by the top 10. By the
end of 2018, the fleet had shrunk to 973 units, and the number
of rig contractors had declined to 157. However, the top 10 man-
aged 40.0% of the fleet.
Oil prices were volatile in 2018. After reaching their highest
levels since 4Q 2014 (US $81.03/bbl for Brent in October 2018
FEBRUARY 2019   OFFSHORE | WWW.OFFSHORE-MAG.COM23
1902OFF23-25.indd 23
TOP 10 OFFSHORE DRILLING CONTRACTORS •
and US $71.00/bbl for WTI in July 2018), the year ended with oil
prices at their lowest point since 3Q 2017 (December averaged
US $57.36/bbl Brent and US $49.52/bbl WTI). The lack of stability
is a major contributing factor to the low number of project final
investment decisions operators have committed to over the past
few years. This, in turn, translates to fewer development drilling
programs for rigs.
One thing that did not change from 2017 is Ensco remaining
at the top of the list for the second year in a row. This happened
despite Transocean closing two acquisitions during the year and
moving from number four on the list to number two with a total
of 56 units managed at the end of the year, versus 59 for Ensco.
2/4/19 10:55 AM
 • TOP 10 OFFSHORE DRILLING CONTRACTORS

TOP 10 OFFSHORE DRILLING CONTRACTORS BY NUMBER OF RIGS MANAGED

(TOTAL RIGS INCLUDES RIGS UNDER CONSTRUCTION)
Under NW Middle Asia/ Rest of
Company Total Rigs Working Construction US GOM Latin Am Europe W Africa East Pacific World
Ensco 59 32 3 9 3 9 9 11 14 4
Transocean 56 23 5 8 7 14 6 0 12 9
Seadrill 52 17 12 6 5 2 8 6 24 1
COSL 51 34 0 0 3 4 1 5 38 0
Shelf Drilling 38 26 0 0 0 0 5 20 11 2
Borr Drilling 36 9 9 0 0 8 3 3 22 0
PDVSA 29 4 0 0 29 0 0 0 0 0
Noble 25 16 0 5 3 4 0 6 4 3
Maersk Drilling 23 14 0 1 1 13 3 0 3 2
ADNOC Drilling 20 20 0 0 0 0 0 20 0 0
Top Ten Total 389 195 29 29 51 54 35 71 128 21
Entire Fleet 973 415 124 74 150 88 67 179 351 64
Top Ten %
40.0% 47.0% 23.4% 39.2% 34.0% 61.4% 52.2% 39.7% 36.5% 32.8%
of Total
Notes: Rig Types: Arctic, drill barges (but not inland barges), drillships, jackups, semisubmersibles, submersibles, and tender-assists.
Rigs en route between regions are shown in the destination region.
Latin America includes all South America, Central America, Caribbean, and Mexico.
Seadrill numbers do not include rigs owned and managed by North Atlantic Drilling.
Data courtesy of IHS Markit. All data as of January 4, 2019.

Rounding out the top three spots is Seadrill, which dropped from
the second spot and closed out 2018 with 52 units.
MERGERS AND ACQUISITIONS
As expected, mergers and acquisitions were a hot topic among
offshore drilling contractors in 2018. Transocean closed on two –
Songa Offshore in January 2018 and Ocean Rig in December 2018.
Meanwhile, Ensco and Rowan Companies agreed to a merger in
2018, but it is not expected to close until later in 2019; therefore,
the two companies are counted as separate entities for the pur-
poses of this article. Ensco’s last major acquisition was Atwood
Oceanics, which closed in October 2017.
In April 2018, Borr Drilling finalized its acquisition of Paragon
Offshore. In 2017, Paragon was seventh on the top 10 list, and
Borr came in ninth. Following the combination of their fleets,
Borr elected to remove several units from its fleet. The rig con-
tractor also made multiple asset acquisitions during the year.
These changes resulted in Borr landing in the number six spot
on the top 10 list.
Paragon was the only rig contractor on the 2017 list to not
appear on the 2018 list, leaving space for only one new entrant.
ADNOC Drilling now holds the number 10 spot on the list with
a total of 20 rigs, which is unchanged from its rig count in 2017.
ADNOC is part of the ADNOC Group of companies, or Abu Dhabi
National Oil Co. It was established in 1972 and acquired its first
rigs in 1973. All 20 rigs are currently under contract to ADNOC
Offshore and are working in the United Arab Emirates. The addi-
tion of ADNOC Drilling brings the number of state-owned drill-
ing contractors on the list to three, including COSL and PDVSA.
WORKING RIG COUNT
In contrast to the decline in the total fleet, the number of work-
ing rigs rose over the past year for both the top 10 companies
and the entire global fleet. While shrinking the total rig supply
can increase the global utilization rate should the working count
hold steady, a better indicator of a stronger market is an increase
in the working rig count. However, the year ended on a consid-
erable down note in terms of oil price. In the face of gains made
over the course of the first three quarters of 2018 that led to an
average Brent oil price of US $81.03/bbl for October – the highest
since the 4Q 2014 – and an average WTI price of US $71.00/bbl
in July – also the highest since the 4Q 2014 – both commodity
prices fell to their lowest points since the third quarter of 2017.
These drops could hinder some programs that were poised to
go forward this year.
In terms of the number of units under construction, 2017
ended with 143 rigs still to be delivered, versus 124 at the end of
2018, for a difference of 19 rigs. Only one rig was ordered last year
for which construction also commenced during the year, and a
total of 20 rigs were delivered, which equates to the net drop of
19 units. All but two of the 20 deliveries were jackups. The other
two were semisubmersibles. Awilco Drilling ordered the new rig
that is now under construction. The harsh-environment semi,
currently known in the IHS Markit RigPoint database as Awilco
Semi Tbn1, is due for delivery in 2021.
MIDDLE EAST AND WEST AFRICA
By region, the Middle East and West Africa made the most gains
in 2018. While the Middle East offshore rig fleet grew by three
overall, the top 10 contractors grew their share from 29.5% to
39.7%. This is mostly attributable to local contractor ADNOC
Drilling being added to the top 10, although there were small
changes among others on the list. As a matter of fact, the strong
Middle East market closed out 2018 with more rigs contracted
(130) than at the end of 2013 (128) – the last full year before the
market downturn began.

24 WWW.OFFSHORE-MAG.COM | OFFSHORE   FEBRUARY 2019

1902OFF23-25.indd 24 2/4/19 10:55 AM


As for West Africa, the regional fleet grew by three, and the top
10 increased its count by seven, resulting in an expanded pres-
ence from 43.8% to 52.2%. West Africa, in particular the Canary
Islands, remains a popular stacking location for rigs that con-
tractors would like to keep ready to mobilize to various locations,
be it the various countries of West Africa, or someplace in South
America or the Mediterranean Sea. West Africa began showing
signs of a slow recovery after bottoming out its contracted count
at the end of 2016 at 26 units. The year 2017 ended with 29 con-
tracted units, increasing to 36 at the end of 2018.
Northwest Europe, with its need for specialized harsh-envi-
ronment units, has maintained the attention of the largest con-
tractors, as harsh-environment rigs generally enjoy longer-term
contracts at higher day rates than their benign counterparts. Last
year ended with no change from the previous year to the num-
ber of rigs the top 10 have in the region. However, the entire fleet
took a small hit with a loss of 12 rigs. This change left the larger
contractors with a bigger piece of the pie at 61.4% versus 54.0%
in 2017. In terms of contracting,
as with West Africa, the con-
tracted count for Northwest
Europe bottomed out in 2016
at 55 rigs. The next year ended
with a small tick up to 57 con-
tract units, before rising to 61
in 2018.
US GULF OF MEXICO
Meanwhile, the region that took
the biggest hit was the US Gulf
of Mexico. It lost 21 rigs versus
2017, and the top 10 contrac-
tors’ share shrank from 50.5%
to 39.2%, representing a decline Photo courtesy ADNOC Offshore
of 19 units. Some rigs were lost
due to attrition, but others left either for work in other regions or
for less expensive stacking locations where rig contractors could
take advantage of cluster-stacking procedures (in which keep-
ing more than one rig within short distance of each other means
some resources, such as maintenance personnel, can be shared);
or reduced insurance coverage (such as hurricane insurance).
Looking back to December 2013, the contracted rig count was
80. By the end of 2016, it had fallen to 35 rigs, then 34 at the end
of 2017. Last year ended with 35 units contracted. The retiring or
moving of rigs has been the response to the continued weakness
in the regional market and the lack of visible near-term demand.
ASIA/PACIFIC
The Asia/Pacific region also took a large hit to its fleet, losing 22
units, but this is primarily explained by the region being home to
the major rig builders. Newbuild rigs that mobilized elsewhere
accounted for the big drop in the regional fleet. This is much
less concerning than the drop in fleet size experienced by the US
Gulf of Mexico. For comparison, 2013 ended with a contracted
count of 206, but unlike the US Gulf, Asia/Pacific began to show
FEBRUARY 2019   OFFSHORE | WWW.OFFSHORE-MAG.COM25
1902OFF23-25.indd 25
TOP 10 OFFSHORE DRILLING CONTRACTORS •
signs of recovery after hitting a year-end low of 138 in 2016. The
following year, the contracted count rose to 153, followed by a
slight uptick to 155 at the end of last year. In this case, the top
10 rig contractors increased their presence by one rig over 2017,
growing their share of the fleet from 34.0% to 36.5%.
NOTEWORTHY DEVELOPMENTS
Even though the offshore rig market recovery has been slow and
painful for most rig contractors, they continue to innovate in
order to keep up with the changing demands of E&P compa-
nies. In late December, Transocean announced it had signed a
rig design and construction management contract, along with a
five-year drilling contract, with Chevron for one of its ultra-deep-
water drillships already under construction. As part of the deal,
the rig will be the first floating rig outfitted with a 20,000 psi BOP
(referred to as a 20K BOP) for use in high-pressure projects. The
rig will feature dual 20K BOPs, a net hookload capacity of 3 MM
lbs, a 165-ton active heave compensating crane, and an enhanced
dynamic positioning system.
Another rig contractor that
recently announced a technol-
ogy breakthrough is Ensco.
In December, the company
announced its new Continuous
Tripping Technology, which it
says will provide more efficient
and safer pipe tripping, thereby
lowering project costs. The
new proprietary technology is
expected to enable pipe-trip-
ping speeds of up to 9,000 ft/hr,
which Ensco says is up to three
times faster than conventional
stand-by-stand methods. The
Continuous Tripping Technol-
ogy has been installed on newbuild jackup ENSCO 123. At the time
of writing, commissioning is under way and the rig is due to be
delivered in March 2019. It will then be mobilized to the UK for
its maiden four-month charter with Premier.
This year is expected to hold yet more changes for offshore drill-
ing contractors. In addition to the pending Ensco-Rowan merger,
other assets remain in flux, whether from companies struggling
to stay afloat with day rates still depressed and a large number of
idle units still seeking work; or from outliving their usefulness in
light of advancing technology. Environmental concerns are also
important, as some E&P companies are realigning their portfo-
lios and some countries are making moves to limit drilling off
their coasts. Meanwhile, frontier areas such as Guyana continue
to shine as a source of growing importance. •
THE AUTHOR
Cinnamon Edralin is a senior offshore rig analyst at IHS Markit
and has covered the offshore market for 13 years. Her primary
regions of focus are the US Gulf, offshore Alaska, and eastern Can-
ada. She holds a BA in liberal arts from the University of St. Thomas.
2/4/19 10:55 AM
 • GULF OF MEXICO

Deepwater subsea well spuds

on the decline
Dry tree versus wet tree trends examined

MARK J. KAISER, CENTER FOR ENERGY STUDIES, LSU

IN THE FINAL part of this five-part SUBSEA WELLS SPUD IN THE SHALLOW WATER AND DEEPWATER
series on Gulf of Mexico well trends, GULF OF MEXICO
subsea wells, also known as wet wells, 120
are examined.
The first subsea wells in the Gulf of 100
Mexico were drilled in the late 1950s.
Subsea wells spud

Operators experimented with subsea pro- 80

duction systems in shallow water in the
mid-1970s to prove-up the technology 60
in anticipation of moving into deeper
water. The first deepwater subsea well
40
was drilled in 1988 and remains one of
the most important tools in the deepwa-
20
ter development toolkit.
Through 2017, there have been 1,443
0
subsea wells drilled in the Gulf of Mex-
1958

1962

1965

1968

1976

1979

1982

1985

1988

1991

1994

1997

2000

2003

2006
2009

2012

2015
ico – 112 in shallow water and 1,331 in
deepwater. Circa 2017, eight subsea wells <400 ft >400 ft
were producing in shallow water and 375 Source: BOEM, March 2018
were producing in deepwater.

DRY TREE VS. WET TREE DRILLED, ABANDONED, AND PRODUCING SUBSEA WELLS IN THE
In subsea completions the tree resides SHALLOW WATER GULF OF MEXICO
on the seafloor requiring mobilization of 120
an intervention vessel or MODU when-
ever well work is required. In direct ver- 100
tical access wells, a subclass of wet well,
Cumulative subsea wells

the tree resides on the seafloor but is 80

accessible from a rig on the platform. The
Auger and Ursa TLPs and the Perdido 60
spar employ direct vertical access wells.
Dry tree wells by comparison maintain
40
the tree on the platform and connects
to the seafloor wellhead via conductors
20
or tensioned risers. The host facility has
the ability to drill, intervene, and monitor
0
each well. On floater structures a heave
1958

1962

1965

1968

1976

1979

1982

1985

1988

1991

1994

1997

2000

2003

2006
2009

2012

2015

optimized platform is required, and the

inclusion of a rig increases the payload,
Spud <400 ft PA+TA, <400 ft Producing, <400 ft
design, and operational complexity. Source: BOEM, March 2018
Subsea wells are identified separate
from dry tree wells because they differ requirements and limitations, recovery rates, and decommissioning liability.
in several fundamental ways in terms of Subsea wells are more expensive to equip, workover, operate, and decommission
their capital expenditures, operational than dry tree and direct vertical access wells, by perhaps an order-of-magnitude or

26 WWW.OFFSHORE-MAG.COM | OFFSHORE   FEBRUARY 2019

1902OFF26-27.indd 26 2/4/19 10:55 AM

 GULF OF MEXICO •

DRILLED, ABANDONED, AND PRODUCING SUBSEA WELLS IN THE

DEEPWATER GULF OF MEXICO
1400

1200
Cumulative subsea wells

1000

800

600 “I can think of no one better to

translate the complexities of natural
400 gas liquids into a more easily
understandable subject.”
200
— Frank H. Richardson, President
0 and CEO, Shell Oil Company, Retired
1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2014

2016
Natural Gas Liquids: A Nontechnical
Spud >400 ft PA+TA, >400 ft Producing, >400 ft Guide is a comprehensive overview
Source: BOEM, March 2018
of NGLs from production in the oil
patch to consumption in the fuels and
more. They are expected to be abandoned at a higher production rate relative to dry petrochemicals industries.
tree and direct vertical access wells, for all things equal, because of the back pressure
that arises delivering the fluid to the host and less frequent interventions to main- Learn what is behind natural gas liquids:
tain the well’s productivity. • How they are produced
Subsea wells also have difficulty flowing with high water cuts because of hydrate
formation; and if gas lift or subsea compression is used to flow to a lower abandon- • How they are transported
ment pressure, then flow assurance issues such as asphaltene deposition may result. • How they are consumed in the fuels
The cost to drill and complete and petrochemicals industry
a subsea well, for all things equal, GULF OF MEXICO SUBSEA WELL • Profles of successful NGL companies
may be comparable to a dry tree INVENTORY CIRCA 2017
< 400 ft > 400 ft Total
well depending on how the wells
Drilled 112 1,331 1,443
are drilled and completed (e.g.,
73 178 251
with or without a platform rig, Permanently abandoned
number of stages, number of cas- Remaining 39 1,153 1,192

ing strings, well complexity, mar- Producing 8 375 383

ket rates, etc.). Source: BOEM, March 2018

SHALLOW WATER
Subsea wells are not needed or desirable in shallow water because well protectors or
fixed platforms can be employed for isolated small reservoirs and there is no advan-
tage using wet wells.
Most shallow-water wet wells are old and about two-thirds of shallow-water wells
have been permanently abandoned. Circa 2017, the shallow-water active wet well
count was 39 with eight wells producing. Since 2008, only three shallow-water sub-
sea wells have been drilled.
226 Pages/Hardcover/2014
DEEPWATER
In deepwater, subsea wells are an important component in field development and
began to be drilled in large numbers in the mid-1990s when deepwater development ORDER YOUR COPY TODAY AT
concepts began to mature. WWW.PENNWELLBOOKS.COM
Since 2008, about 400 subsea wells have been drilled in deepwater. Circa 2017, there OR CALL 800-752-9764
were 1,153 active deepwater wet wells with 375 producing.
Trends in subsea wells spud, abandoned, and producing are shown in the accom-
panying figures. •

FEBRUARY 2019   OFFSHORE | WWW.OFFSHORE-MAG.COM27

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 • DRILLING & COMPLETION
Industry advancing drill rig technology
to meet more demanding applications
Improved BOP, crane, and pipe tripping systems now available
BRUCE BEAUBOUEF, MANAGING EDITOR
AS OPERATORS SEEK to develop fields in ultra-deepwater
and high-pressure reservoirs, drilling contractors and engineer-
ing companies are responding with an array of new technolo-
gies designed to enable drilling and completion operations with
greater efficiency and safety.
Transocean reports that it will offer advanced BOP technol-
ogy and drilling rig power systems with two dynamically posi-
tioned ultra-deepwater drillships currently being constructed
in Singapore. The drilling contractor recently signed a rig design
and construction management contract, as well as a five-year
drilling contract, with Chevron USA Inc. for one of the two
drillships currently under construction at the Jurong Shipyard.
28
1902OFF28-29.indd 28
GustoMSC says that
its new multi-purpose
offshore crane, Chela,
offers enhanced material
handling and safety
capabilities over the
wellhead area. (Image
courtesy GustoMSC)
The drilling contract has an estimated backlog of $830 mil-
lion, excluding mobilization and reimbursables. The drilling
contract is subject to design, construction, and delivery require-
ments set forth in the construction contract.
The rig will be the first ultra-deepwater floater rated for
20,000 psi operations and is expected to begin operations in
the Gulf of Mexico in the second half of 2021.
In the event of termination for convenience by Chevron,
Transocean will be compensated for its incremental 20,000
psi subsea investment in the rig. Additionally, a termination
for convenience occurring after April 2020, would result in a
substantial termination fee.
WWW.OFFSHORE-MAG.COM | OFFSHORE   FEBRUARY 2019
2/4/19 10:55 AM
 DRILLING & COMPLETION •

The drillship will feature dual 20,000 psi BOPs, net hook-load capacity of three mil-
lion pounds, 165-ton active heave compensating crane, and an enhanced dynamic
positioning system. The rig’s high reliability power plant will also be configured to
comply with Tier III International Maritime Organization emissions standards.
“We are extremely pleased to announce that we have entered into an agreement
with Chevron to construct and operate the industry’s most capable ultra-deepwater
drillship,” said Jeremy Thigpen, president and CEO. “Transocean has a long and sto-
ried history of introducing new technologies that enable our customers to safely and
efficiently access the world’s most challenging reservoirs. Adding to that history, we
are proud to be delivering the industry’s first rig capable of drilling and completing
wells requiring subsea equipment rated to 20,000 psi.”
Meanwhile, GustoMSC has issued an update on refinements to its new multi-pur-
pose offshore crane, Chela. In 2018, Maersk Drilling placed the first contract for the
crane and has since worked with GustoMSC and Aker BP on further improvements.
The main enhancement is an increased reach capability under the cantilever, said
to improve material handling and safety capabilities over the wellhead area.
This has been achieved by introducing an additional “link” that provides greater
flexibility in movement for the lifting tip, thereby increasing reach and control of the
supported object.
Chela can reach below the cantilever as well as elevate and reach toward the main
deck, providing crane access to an area not normally accessible due to blocking of
access by the drilling cantilever.
Its safety features allow these tasks to be performed while simultaneously con-
ducting operations on a well from the drill floor, without the need to shut-in other
wells, GustoMSC added.
Elsewhere, Ensco has introduced its Continuous Tripping Technology, a new pro-
prietary solution that is designed to provide more efficient and safer pipe tripping,
and help lower customers’ offshore project costs.
Ensco says that the patented technology, in concert with other key equipment,
sensors and process controls, fully automates the movement of the drillstring into or
out of the well at a constant controlled speed. When deployed during offshore activ-
ities, the technology is said to enable pipe-tripping speeds of up to 9,000 ft/hr – up
to three times faster than tripping times achieved by current conventional stand-by-
stand methods.
Ensco says the technology can be retrofitted to both floaters and jackups, and is
particularly well-suited for ultra-deepwater drillships and larger modern jackups.
The drilling rig contractor recently completed the installation of this new technol-
ogy on the jackup ENSCO 123, and commissioning of this system is currently under
way. Upon completion of the system’s commissioning and the rig’s acceptance test-
ing, ENSCO 123 is expected to be delivered in March 2019.
President and CEO Carl Trowell said: “Continuous Tripping Technology is a step-
change efficiency improvement that uses automation and innovative technology to
address a repetitive, time-consuming process that is ubiquitous in offshore projects
today. Tripping pipe is on the critical path for all drilling and workover activities and,
as a result, meaningful time is spent performing this process over the life cycle of every
offshore well. Continuous Tripping Technology significantly reduces the amount of
time spent tripping pipe, and the faster tripping time that this technology offers is
expected to lead to cost savings for customers regardless of water depth or well type.”
In addition to increased efficiencies, Continuous Tripping Technology is said to
make the pipe-tripping process safer by using automation to eliminate human error
and personnel exposure associated with the conventional stand-by-stand method.
In addition, the constant speed that Continuous Tripping Technology is designed
to deliver is expected to have the added benefit of minimizing surge and swab pres-
sure on the wellbore by eliminating intermittent stopping and starting, as well as
the excessive peak speeds that often occur when using current industry practices. •

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 • DRILLING & COMPLETION
The SureDrill Active Vibration Damper.
(All images courtesy of PSW Group)
Automotive damping system adapted
to minimize drillstring vibrations
North Sea trials deliver strong results
STINA OPHAUG BOGE, PSW GROUP
IDENTIFICATION AND CONTROL of drillstring vibrations
has become an increasing priority for the drilling industry
over the past two decades, with more complex wells being
accompanied by greater incidence of downhole tool failures.
The APS Technology SureDrill Active Vibration Damper (AVD)
is a new drilling optimization development that employs sim-
ilar technology to that applied to adaptive shock absorbers
by the automotive sector.
A major offshore operator and a service company recently
deployed the AVD tool on an operation in the Norwegian con-
tinental shelf (NCS) with impressive results. The run with the
tool was the best achieved on the field, drilling more footage
at a faster penetration rate than the previous eight wells. More
importantly, it also saved the cost of one or more trips for
bottomhole assembly changes.
PSW Group has signed an exclusive partnership agreement
with APS Technology for distribution and continued develop-
ment of the SureDrill-AVD tool for offshore operations, and
is confident of a strong uptake, with drilling becoming more
challenging as the industry explores and develops harsher
environments.
The main objective with managing vibrations is to ensure
30
1902OFF30-33.indd 30
consistent drilling performance in continuously changing
conditions, while avoiding potential dysfunctions such as
severe vibration and stick-slip that can lead to tool failure,
bit damage, and low rate of penetration (ROP). The finan-
cial impact of such failures can be significant in terms of the
cost of repairing or replacing damaged components, and the
extended drilling time caused by unplanned events. Although
progress has been made over the last several years, the indus-
try is still working to find a solution that achieves more reli-
able drilling performance.
So how did an automotive shock absorber technology
make its way to North Sea drilling? Klaus Magnus Werge-
land, now Oilfield Manager at PSW Group, was watching a
TV commercial for Hummer and its ‘MagneRide’ adaptive
suspension system and wondered why this technology had
not been applied to drilling. Although downhole tools bear
little relation to a car, both need to adapt to changing vibra-
tions to run smoothly.
The MagneRide is an electronically controlled adaptive
damping system that automatically reacts to the texture of
the road and adjusts the damping in real time. The essen-
tial elements to the system are a viscous liquid containing
WWW.OFFSHORE-MAG.COM | OFFSHORE   FEBRUARY 2019
2/4/19 10:55 AM
 DRILLING & COMPLETION •

magnetic particles (magne- With AVD tool.

torheological fluid), sophis-
ticated motion sensors, and
an electrical control unit
which receives information
from the motion sensors and
applies an electrical charge
to the particles. This magne-
tizes the particles and causes
the viscosity of the liquid to
change, thereby stiffening
the suspension.
PSW Group’s research
revealed that APS Technol- Without AVD tool.
ogy had adapted and pat-
ented the technology for use
in downhole drilling applica-
tions and had been develop-
ing its version and associated
control algorithms for more
than a decade. While the
SureDrill-AVD is based on
similar principles as the
ones behind the magnetic

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FEBRUARY 2019   OFFSHORE | WWW.OFFSHORE-MAG.COM31

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 • DRILLING & COMPLETION

adaptive suspension system, various unique requirements
had to be addressed to make the technology work in a drilling
environment. Following contact between the two companies,
it soon became clear that APS’ technological advancement
was a good fit with PSW Group’s offshore experience.
DAMPING BASED ON REAL-TIME DATA
As with the adaptive suspension system for cars, the Sure-
Drill-AVD receives real-time data and automatically adjusts
the damping by means of magnetorheological fluid viscosity
changes. An integrated motion sensor measures displacement
several times per second and changes the damping factor
over a 7-to-1 range based on observed drilling conditions.
By keeping tool string damping in the right range for current
drilling conditions, the AVD significantly reduces axial, lat-
eral and high frequency vibrations, and stick slip; this allows
for a more consistent weight on bit, more consistent drilling
torque, and increased ROP. It essentially decouples vibrations
from the lower BHA from the rest of the drillstring, minimiz-
ing drillstring dysfunction, and leading to cost savings both
on drilling operations and equipment.
When SureDrill-AVD was first tested on the NCS, the tool
was used to drill a 1,656-m (5,433-ft) 12¼-in. section from
casing point to casing point, in a 66° tangent section. The
entire section was drilled in one single bit run: analysis of
the data revealed that tangential resonance was significantly
reduced, and the vibration analysis clearly shows a substan-
tial decrease in axial and lateral vibrations, with an increased
ROP due to mitigated vibrations and optimized parameters.
Field data also showed a significant decrease in stick slip,
minimizing destructive vibrations.
After the successful run on the NCS, the tool has been
employed on several wells, again with promising results, and
PSW Group now sees additional applications for the tool. The
company plans to continue developing its partnership with
APS Technology and to expand the tool fleet. Potentially,
SureDrill-AVD could improve drilling efficiency worldwide,
allowing the industry to drill longer and faster with fewer
bit trips and reduced downtime on downhole equipment. •
THE AUTHOR
Stina Ophaug Boge is Communications and Marketing Man-
ager in PSW Group, and held positions within the oil and gas
industry for the past eight years. She previously worked on
global communication for FMC Technologies, Subsea Ser-
vices. She holds an M.Sc. in Marketing from Leeds Metropol-
itan University and is a member of the board of the Society
of Petroleum Engineers Bergen Section.

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 • ENGINEERING, CONSTRUCTION, & INSTALLATION

New methodology helps reduce carryover

work, improve project performance
Approach can be particularly useful during execution phase

SHAWN SAADIPOUR, DAVID J. TAGHEHCHIAN, CHEVRON U.S.A INC.

CARRYOVER WORK is an unfinished construction and/or POPULAR EXECUTION STRATEGY FOR

commissioning scope of work from one contractor transferred OFFSHORE PROJECTS
to a different location to be executed by a different contractor.
Offshore
As a general practice, most risk analysts model the carryover Fab Yard Fab Yard
location
work as a discrete risk in their risk analysis. However, treat- (Overseas) (GoM)
(GoM)
ing carryover as a discrete (or independent) risk may not be
the best approach. Since carryover is a function of incomplete Hull Fabrication
work prior to a constrained work-transfer date, it is not an
independent event and should not be modeled as a discrete
Topsides
risk in risk analysis. fabrication
The goal here is to demonstrate a methodology that can be
used to develop probabilistic distributions of the first oil mile- Hull & topsides
stone date based on various constrained sailaway dates and the integration
resultant carryover work. This can then be used to develop a
risk-based cost-benefit tradeoff model to find an optimal sail- Onshore
away date to maximize project value. Furthermore, the value commissioning
of mitigation plans can be assessed (cost vs. schedule improve- Offshore
ment) accordingly. hookup and
Carryover work has always been a major schedule risk to the commissioning
success of offshore projects. This work is usually completed at
a lower productivity rate which drives up cost and schedule managed by:
growth. Although it is logical not to develop a base-case plan • Schedule-based optimization of the sailaway call-down win-
to have carryover work, it has become a fixed part of execut- dow with the objective of achieving the earliest possible
ing offshore projects. Carryover work is created due to one or project completion milestone (i.e. first oil). This assumes an
both of the following: earlier first oil date equates to project value preservation/
• Unsatisfactory progress or performance at original location improvement.
by the original contractor • Assessing the value of mitigations (increasing workforce,
• Imposed constraints such as weather conditions or a require- adding a work shift, paying for a second transportation con-
ment to achieve a milestone (i.e. sailaway date). tract, securing supplemental contractors in the original work
Although carryover work can help a project satisfy a short- location, utilizing accommodations barges offshore, etc.) to
term objective such as achieving an announced sailaway mile- maintain the project completion date (i.e. first oil) or to min-
stone date, it can greatly impact project value in the long term imize the delay.
via first oil slippage or cost growth due the increased offshore When using a Monte-Carlo simulation-based analysis tool,
labor cost. It is important for project managers to analyze and each case within the simulation should calculate carryover
manage the risk of carryover by preparing adequate mitigation work as a function of unfinished work beyond the constrained
and contingency plans. sailaway date independent of the other cases in the simula-
Fabrication, integration, hookup, and commissioning of tion. On the other hand, using a discrete risk allows for cases
offshore facilities varies depending on type of facility, execu- where there should be no carryover work to have some carry-
tion strategy, and contracting strategy. The first chart depicts over impact and vice versa. Moreover, discrete risks typically do
common execution strategies used for offshore projects. Each not penalize the completion milestone heavily enough due to
color shows a different execution strategy; dotted lines depict- a reluctance to be appropriately pessimistic in range of impact
ing where carryover can potentially occur. and probability of occurrence.
Carryover is a risk that is quantifiable if progress and per- It is important to note that this analysis must be conducted
formance can be reasonably forecasted. Carryover risk can be early in the fabrication when the project still has flexibility in

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 ENGINEERING, CONSTRUCTION, & INSTALLATION •

selecting and narrowing down a call-down window. As a deci- DIFFERENT SCENARIOS OF POTENTIAL
sion-making tool, while the project is progressing, the analysis CARRYOVER WORK
must be repeated with up-to-date inputs impacting the result.
Constrained Ready for
ready for loadout date
CASE STUDY loadout date

The case study features a deepwater production facility which Construction

carryover Commissioning
both hull and topsides are fabricated, integrated, and com- carryover
missioned overseas. The FPU is towed to a shore base for final
preparation for installation. Finally, the FPU is transferred to the Construction (MC)
final location for installation and hookup and commissioning. Onshore Commissioning
For assessment, assume that this project is at the early stage Incline Test
of fabrication and that all carryover work is planned to be liq- Total
carryover
uidated at the shore base.
Communicating major project milestones to management
in a probabilistic fashion has become a standard practice in
Constrained Ready for
the industry. Consequently, almost all major capital projects ready for loadout date
loadout date
develop a schedule risk model based on their deterministic plan.
All calculations here are based on “Loadout” date since all Construction (MC)
Onshore Commissioning Commissioning
construction and/or commissioning work must be stopped prior Incline Test carryover
to the loadout and remaining work (if there is any) considered
as “Carryover.” However, sailaway date can be easily identified
from loadout date.
The potential carryover work from fabrication yard to shore
base location is measured to be the delta between constrained
loadout date and: 1. end of onshore commissioning and 2. end Ready for Constrained
loadout date ready for
of construction (MC). Using the schedule risk model, we can loadout date
identify the probability distribution of carryover work catego- Construction (MC)
rized whether it is construction or commissioning carryover. Onshore Commissioning
Carryover work scenarios are depicted in the following charts. Incline Test
Once the carryover work is identified, the next step is to
penalize the first oil milestone for carryover work at lower
productivity.
To calculate the adjusted first oil with carryover work, the Waiting for
risk model needs to be run in a risk analysis tool (i.e. Pertmaster) transportation

and “Risk Data” needs to be exported into an Excel workbook

for all individual cases/iterations for the following activities
and milestones:
• Facility ready for loadout milestone
• End of modules integration and topsides mechanical
completion
• First oil milestone (Base case – No carryover)
After exporting the data to the Excel workbook, the follow-
ing parameters needs to be added to the workbook:
• Constrained loadout date
• Construction carryover multiplier (penalized at rate 1: x)
• Commissioning carryover multiplier (penalized at rate 1: y)
For each case/iteration, the following fields are calculated:
• All carryover
• Only construction carryover
• Only commissioning carryover
• Waiting for loadout/transportation
• First oil date adjusted with carryover.
Ultimately, the S-curve for the first oil date adjusted with
carryover field can be calculated. If the process is repeated for
multiple constrained loadout dates, a comparison chart/table
for all S-curves can be developed to determine which loadout
date (and consequently sailaway date) will minimize the sched-
ule risk to first oil.
DECISION MAKING ANALYSIS
Selecting a later date for loadout reduces the risk of delay to
first oil significantly, but there is still some degree of impact.
The decision comes down to a tradeoff between risk reduc-
tion and opportunity cost. The analysis is very sensitive to the
risk profile of each activity in the schedule risk model as well
as carryover multipliers.
The schedule risk model and this analysis should be repeated
frequently to account for actual performance in the fabrica-
tion yard.
Once the analyst has confidence in the calculated first oil date
adjusted with carryover and potential delay in project comple-
tion, it is possible to conduct a cost-benefit tradeoff analysis.
The value degradation of delaying production can be compared
against the cost of actions to mitigate the delay.

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 • ENGINEERING, CONSTRUCTION, & INSTALLATION

TRADE-OFF BETWEEN RISK REDUCTION AND OPPORTUNITY COST These mitigation plans can be com-
BETWEEN TWO FIRST OIL RISK PROFILES FOR TWO DIFFERENT municated to management on a value
LOADOUT DATES driven probabilistic basis for review and
100% approval well in advance of sailaway.
90%
CONCLUSION
80% Although the methodology presented
FO S-curve for an
Risk reduction
70% earlier loadout date here is a more accurate way to model
the impact of carryover work, the current
60%
practice which applies carryover work
Probability

50% as a discrete risk can be a reasonable

FO S-curve for a later loadout date
40% approach for FID/phase gate decision
making. Project teams should be cautious
30%
about underestimating the potential
20% impact of carryover work to the project
Opportunity cost
10%
throughout all phases of development.
This methodology is particularly useful
0% during the execution phase of the proj-
First Oil Date
ect when carryover risk is being actively
monitored and managed during fabrica-
Project teams should consider: tion activities. Finally, this method can be
• How many days of delay can be saved by implementing mitigation plans? extended to determine the value of proj-
• What is the cost of mitigations? ect performance improvement oppor-
• What is the net present value associated with delaying production by one day? tunities. •

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PM
 ENGINEERING, CONSTRUCTION, & INSTALLATION •

Kvaerner’s yard in Verdal.

(All photos courtesy Kvaerner)

Kvaerner adapts construction methodology

for giant Johan Sverdrup jackets
Additional quayside investment to accommodate FPSOs

JEREMY BECKMAN, EDITOR, EUROPE

OVER THE PAST THREE YEARS, Kvaerner’s yards in Nor-
way have supported various major greenfield and life extension
programs across the Norwegian continental shelf. Highlights
include an unprecedented level of jacket activity at Verdal,
exclusively for the Johan Sverdrup project.
At Stord, a new crane is helping to speed up topsides assem-
bly, and a quayside extension, currently under construction,
will allow the yard to accommodate floating platforms, includ-
ing the Johan Castberg FPSO.
Offshore spoke to Tove Strand Trana, Head of Communi-
cations for Kvaerner’s Structural Solutions business, and Odd
Naustdal, Head of Communications for Process Projects, about
these developments.
***
Offshore: Johan Sverdrup will feature five of the North
Sea’s largest platforms, and Equinor contracted Kvaerner
to build four of the jackets. What was the thinking behind
this decision?
Trana: Prior to the contract award, Kvaerner and Equinor (then
Statoil) had established a frame agreement for jacket deliveries
across the Norwegian continental shelf [NCS], which Equinor
could call on for any upcoming project. When it came to issu-
ing the engineering, procurement, and construction (EPC) con-
tracts for the Phase 1 Johan Sverdrup four-platform complex,
the partners decided to exercise the frame agreement with
Kvaerner for the drilling platform and riser platform jackets.
Subsequently Kvaerner also won an open bid competition for
the process platform jacket.
When negotiating the delivery, one of the objectives was to
improve the total price so that these new jackets would cost less
than jackets in the recent past. One of the key factors to achiev-
ing this was that Kvaerner could take a long-term perspective
on investments in the yard facility, training of personnel, and
so on. The company could also leverage larger volumes with
respect to procurement of material and services from subcon-
tractors. The work flow for all three jackets could therefore be

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 • ENGINEERING, CONSTRUCTION, & INSTALLATION

planned as one overall execution plan,

and this enabled an industrial approach
to much of the scope, including harvest-
ing of ‘copy-effects’ and series-produc-
tion for parts of the work where this was
possible. Also, with Kvaerner as a single
contractor for the three largest jackets
for Phase 1, Equinor could, as the cus-
tomer, organize follow-up very effectively.
In July 2018, the third of the first three
jackets was delivered. All have been dis-
patched on schedule, to the agreed
quality, and the objectives for cost
improvements have been met.

Offshore: What investments did the

company have to make to the Ver-
dal site to undertake a program of
this scale? Lifting of pile cluster.

Trana: The same Kvaerner project team

was in charge of construction and deliv-
ery of all three steel jackets throughout
2014-2018. The company invested in
three crawler cranes at Verdal for the
assembly phase, and in welding robots
and mechanized welding systems that
were used during both prefabrication and
assembly of the three jackets.

Offshore: Was it necessary to work

with materials suppliers in a new way
to ensure compliance with deadlines
and delivery schedules?

Trana: Yes, to effectively integrate pro-

curement and deliveries from subcon-
tractors into one effective delivery model
is critical for an EPC contractor. For this
particular project, which called for deliv-
ery of three of the largest jackets to date
in the North Sea (the riser platform jacket
is the region’s largest), effective procure-
ment of materials with the right quality
was a vital part of the total project exe-
cution. At one time, in the summer of
2017, 65,000 metric tons [71,650 tons] of
steel for the three jackets had to be stored
onsite at Verdal.
Offshore: Were the jackets designed
to simplify offshore installation, and
do they have other features to assist
hook-up operations or to ensure lon-
gevity of service?
Johan Sverdrup process platform jacket.
Trana: Kvaerner’s in-house engineering department for jacket design is interna-
tionally recognized for optimizing design to fit a project’s special requirements.
The three first jackets for Johan Sverdrup weigh in the range 18,000-24,000 metric
tons [19,842-26,455 tons], and were designed to be launched from transport barges.
However, the fourth (and currently) final jacket that the company will supply for
this project, the recently awarded Phase 2 P2 substructure, is being designed to
be lift-installed – with a weight of 12,000 metric tons [13,228 tons], this will be the
heaviest ever lift installation of a jacket anywhere. For this project, the company
has applied its experience in design to combine cost reductions with other proj-
ect-specific criteria, such as operational lifetime, topsides weight and local condi-
tions at site. The corrosion protection/surface treatment system for the jackets is
standard, as for most jackets delivered to the NCS.

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 ENGINEERING, CONSTRUCTION, & INSTALLATION •

Offshore: What other changes and investments has the

company taken to streamline fabrication processes at
Stord, and what is the status of this yard’s other off-
shore projects?

Naustdal: Kvaerner has invested around NOK350 million [$40

million] in Northern Europe’s largest crane for the facility at
Stord, and has also committed NOK370 million [$42.5 million]
to expanding facilities for this crane and the quayside. The
crane provides the capability to lift and install a large module,
after all systems and equipment have been integrated into the
module at ground level where this work can be performed with
maximum efficiency. Being able to plan execution of a project
to include rapid installation of large and complete modules
leads to significant cost reductions, higher productivity, and
most importantly, improved HSE.
The yard started to use the new large crane in 2014 for the
Welding robot. final phases of Lundin Norway’s Edvard Grieg project in the
North Sea, although the execution model for the Edvard Grieg
platform was designed to suit the capabilities of the previous
Offshore: What lessons has Kvaerner taken onboard (smaller) crane. The company applied this benchmark when
from Phase 1 to improve construction of the Phase 2 it started to plan the execution of the Johan Sverdrup Utility
platform jacket? Can you explain how, as the company and Living Quarter (ULQ) topsides, which does involve use
claimed last year, it can now manufacture large jackets of the large crane.
at lower cost than in 2005? The ULQ passed the milestone of mechanical completion
on Oct. 1, 2018, exactly on schedule, and will be towed to the
Trana: In early 2013, almost two years before the oil price field towards the end of 1Q 2019. The program has met all
dropped, Kvaerner embarked on a program of reducing costs objectives for improved productivity using the large crane
and increased productivity. One of the first steps was to estab-
lish a more comprehensive measuring and benchmarking of
costs and productivity throughout the entire work-flow and
value chain in a project. It identified high-priority improve-
ment areas and implemented actions, measured and bench-
marked again, and then repeated the process with further
improvements. It also leveraged learnings from other business
sectors that had adopted sophisticated industrialization, and
transferred this industrialization approach to the oil indus-
try where traditionally there had been a project-to-project
focus, with improvements primarily instigated for individ-
ual projects. The net effect of these actions was that in 2016,
the company had reduced the cost base for new deliveries by
around 25%; for jackets, the cost level is now down to what
was on offer in 2005.
Throughout the North Sea offshore construction industry
cost reductions and productivity improvements have come
into full force since 2014-2015. The latest version of the Nor-
wegian Konkraft Report, published in January 2018, concluded
that the industry in general had improved in both respects by
about 25% but needed to improve further by around the same
magnitude before 2022. Konkraft is a permanent joint effort
between oil companies operating in Norway, the Norwegian
supply industry, Norwegian labor unions and others, with
the purpose of defining initiatives to cut costs and improve
The Njord field semisubmersible
productivity. Kvaerner is an active partner in this initiative. platform at the Kvaerner Stord yard.

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 • ENGINEERING, CONSTRUCTION, & INSTALLATION

Kvaerner Stord is upgrading the Njord A semisubmersible production platform, which started production in 1997 in the Haltenbanken area
of the Norwegian Sea. The program is designed to keep the facility operating on the Njord field for a further 20 years, and includes new
facilities to enable tie-ins of other oil and gas fields in the region.

as an integrated part of the model for project execution and
assembly of the topsides. In parallel, learnings and bench-
marks from Edvard Grieg and the ULQ have been applied to
the ongoing work to upgrade the Njord A semisubmersible
production platform. And the benchmarks from all these proj-
ects will also be transferred to the fabrication of the topsides
of the Johan Castberg FPSO for the Barents Sea.
Offshore: Kvaerner is using the L ALPHX Digital process
for different aspects of the offshore construction pro-
cess. What are the benefits?
Naustdal: This is a digital system which allows the company
to use AI (artificial intelligence) to engineer structures, includ-
ing jackets or scaffolding. The basis for the system is databases
from dozens and dozens of previous projects combined with
the methodology the company applies when designing new
jackets, or when there is a need to design comprehensive scaf-
folding for use during work with a platform or onshore plant.
The system is in use presently for various projects, one being
for the extensive scaffolding around the hull of the Njord A
platform which is undergoing upgrading for 20 new years of
operation in the Norwegian Sea (Kvaerner is the EPC contrac-
tor for this project) and which is due to be completed in 2020.
As for application on future jacket projects, the company is in
dialogue with customers and will consider whether there are
opportunities that might benefit from this process.
Offshore: A new deepwater quayside is under construc-
tion at Stord, the main purpose being able to accom-
modate FPSOs of varying designs, including Johan
Castberg’s. What are the benefits?
Naustdal: This expansion includes prolonging of both crane
tracks for the traverse crane which will enable the crane to
move further and to cover a wider/longer area, for example,
to install topsides modules on a long FPSO. Additionally, it
will allow the crane to work on two topsides located next to
each other if neither is for a long ship-shape FPSO, i.e. for
one circular FPSO and for one semisubmersible platform, or
other similar combinations. The ongoing investment will also
expand the quay area, which will facilitate lining up of mod-
ules and equipment for effective lifting.
Kvaerner has at Stord one of the world’s state-of-the-art

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 ENGINEERING, CONSTRUCTION, & INSTALLATION •

facilities for decommissioning and recy-

cling of old offshore structures. We typ-
ically recycle or re-use around 99% of
the structures we take in. The decom-
missioning facility is located next door
to the area for newbuild platform struc-
tures, which means personnel, tools,
and equipment can be easily shared or
moved around between newbuild proj-
ects and decommissioning projects.
With the expanded crane and quay
facilities, it will also be possible to take
large platform topsides directly in, lift
off big modules with Kvaerner’s large
crane, and then trail the modules over
to the decommissioning facility for recy-
cling. This is safer and more cost-effec-
tive than the conventional arrangement
in which the platform topsides are cut
into pieces offshore, lifted off by expen-
The Johan Sverdup Utility & Living Quarter topsides contains the control center for the entire sive heavy lift vessels standing by to lift
Johan Sverdrup field complex. The Kvaerner/KBR joint venture has been working on the module after module, then transported
topsides under an EPC project, and the structure will be delivered from Stord in March for to shore for recycling. •
transportation to the field center.

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  ENGINEERING, CONSTRUCTION, & INSTALLATION

Offshore field development spend

expected to reach seven-year high
Second half of 2019 will see 177 prospective subsea tree awards

MARK ADEOSUN, WESTWOOD ENERGY

DESPITE A GENERALLY underwhelm- GLOBAL OFFSHORE E&P FIELD DEVELOPMENT SPENDING

ing end to 2018 that saw the Brent barrel 150
lose over half of its value between October
and December, expectations for the off- 125
shore supply chain in 2019 are optimistic.
After averaging $81 billion over 2017-18, 100
E&P field development spending across
Billions, $

the global offshore industry is expected 75

to hit $115 billion in 2019.
Notably, the deepwater and subsea
markets are expected to see a significant
uptick in activity following on from an
excellent 4Q 2018 that saw 129 subsea tree
awards – more than double those recorded
for the entirety of 2016. The first half of 2019
is expected to see a further 174 tree awards,
including the eight already contracted to
TechnipFMC by BP following FID in Jan-
uary on its Atlantis Phase 3 project in the
US Gulf of Mexico.
The second half of the year will see a sim-
ilar volume of order intake with a further
177 prospective tree awards. Major sub-
sea contracts expected over 2019 include
INPEX’s Ichthys Phase 2 offshore Austra-
lia, Woodside’s Sangomar Project offshore
Senegal as well as Buzios, Mero, and Sepia
offshore Brazil. These projects are in addi-
tion to the pre-FID awards for Anadarko’s
Golfinho development offshore Mozam-
bique and Premier Oil’s Sea Lion offshore
the Falklands to TechnipFMC and Dril-
Quip, respectively.
While this anticipated surge will be
most welcomed by a still beleaguered
supply chain it may not be sustained as
E&Ps push through long-awaited FIDs to
exploit the current low-cost environment.
Assuming limited FID slippage from West-
wood Global Energy’s reference-case off-
shore field development outlook, 2020 tree
orders could stumble to 285 – a drop of
20% versus 2019 (albeit still a significant
improvement over 2016-17).
50
25
0
2011 2012 2013 2014 2015 2016 2017 2018 2019
Total spend SURF Fixed platform
LNG FPSO Subsea production Contract drilling
Floating platform Pipeline
Expenditure on floating production systems is expected to mirror the uptick in subsea
production systems growing from just under $8 billion in 2018 to $21 billion in 2019. Over
the past couple of years, FPS spend has been characterized by the emergence of FLNG.
However, conventional FPSOs will take center stage this year with just under $17 billion
of contract awards anticipated. Major upcoming tenders include ExxonMobil’s Payara,
ConocoPhillips’ Barossa, and the Petrobras Buzios-5 FPS projects.
Regionally, Latin America will dominate offshore field development expenditure in
2019, accounting for 28% of global spend. Despite Guyana taking much of the spotlight
in 2018, activity this year will be principally driven by a resurgent Brazil with Petrobras
recently announcing a five-year capex plan of $84.1 billion, a 13% increase over last year’s
plan. In addition to this, the opening of Brazil’s deepwater basins to foreign investment
will help ensure that the Brazilian market maintains its leading position for subsea devel-
opments post-2019.
The development of major gas reserves in the East African basin and Mauritania is
expected to be the key driver of offshore spend in Africa. However, after a period of dor-
mancy, the Gulf of Guinea will experience a boost, with the expected sanctioning of proj-
ects such as BP’s Platina and Eni’s Kalimba projects offshore Angola. However, continued
delays to Shell’s Bonga South West-Aparo and Eni’s Zabazaba developments represents a
downside to future expenditure in the region.
The US Gulf of Mexico has been impacted by several high-profile disappointing appraisal
wells, including Coronado, Yucatan North, and Moccasin. This has led operators to down-
size field reserves, and re-evaluate and delay field development concepts. Regional field
development spend is expected to total just $6.7 billion in 2019 or 6% of the global total. 

42 WWW.OFFSHORE-MAG.COM | OFFSHORE FEBRUARY 2019

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 PRODUCTION OPERATIONS 

Digitalization speeding delivery of

complex subsea concepts
Improved management of risk, uncertainties

DARRELL KNIGHT, FUTUREON

DIGITALIZATION ADVANCES are helping engineering con-
tractors design subsea field concepts in one-fifth the time taken
by traditional project planning methods.
Developments in robotic process automation, Internet of
Things (IoT) sensors, analytics and cognitive technology are
increasingly addressing the industry’s problems of accessing
data, converting data across expert systems, and visualizing data
for offshore field layouts. Emerging technologies (sometimes
called Industry 4.0) are transforming the way engineering, pro-
curement, and contracting (EPC) companies conduct business
by generating more field concepts in a much shorter time and
eliminating inexact options. This is being accomplished using
real-time data uploaded into the cloud to visualize the fields
and run computations from a single source of data.
Compare this to the traditional approach. The basic bidding
process would capture brainstormed ideas from engineers on
flip charts and in PowerPoint and convert them into visuals via
Visio, Corel Draw, and MS Paint. Then an outsourced engineer-
ing house would turn these documents into Computer Aided
Design (CAD) files, with the drawn-out process stunting the
EPC firms’ ability to meet tight design schedules and imple-
ment late changes quickly.
Cloud-based technologies such as FutureOn’s FieldAP and
FieldTwin represent the next-generation of subsea project plan-
ning, bringing real-time data into plain sight through easy-to-
use 2D/3D visualization in a collaborative web environment.
Two key components that are revolutionizing the oil and gas
bidding process are data visualization and data management,
which allow greater collaboration, speed the design concept
process, enable more meaningful decision-making, and reduce
overall costs.

Screen shots showing different field development options. (All images courtesy FutureOn)

FEBRUARY 2019 OFFSHORE | WWW.OFFSHORE-MAG.COM 43

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  PRODUCTION OPERATIONS
FASTER PRE-FEED
The visual rendering of complex real-time data streams
increases an engineer’s responsiveness because the human
brain processes images 60,000 times faster than it does text.
Data visualization advances allow engineers to conceptualize,
build, and approve pre-front-end-engineering design (FEED)
field concepts three times faster and help engineers manage
engineering IoT sensor data and risk management more effec-
tively during operations.
Data management makes sense of the enormous influx of
IoT sensor data and identifies discrepancies, leading to better
business decisions and improved workflows.
The work can be done more rapidly in collabo-
ration with colleagues (both inside and outside
of the company) and around the world, since
everyone works from the same pool of real-time
data housed in a single place. Furthermore,
FieldAP and FieldTwin create a space within
the engineering process for creativity without
negatively affecting progress and allow solu-
tions to evolve through a collaborative effort
as opposed to the siloed approach of the past.
While global demand for oil and gas has cre-
ated tight work schedules and, over the past
year, an excess of projects to complete, tighter
operating budgets have forced companies to
rely on fewer employees in the immediate term Darrell Knight.
to meet this growing work demand. The smart-
est and most future-focused, long-term-profit-driven compa-
nies have responded by exploring digitalization strategies to
drive higher and better thinking from their engineering tal-
ent, fulfilling the business imperative of providing improved
value to bring in revenues.
EPC companies design useful early concepts of offshore
44
1902OFF43-45.indd 44
oilfield projects that are then handed off seamlessly to the
construction teams and oil and gas operators to construct
and maintain all in a matter of weeks, as opposed to the pre-
vious months, because teams can now produce from the same
single data platform.
REDUCED COSTS AND TIME
It has become the standard operating practice for oil and
gas industry to find new ways to reduce expenses in uncer-
tain times. The oil and gas industry is now looking for new
tools as well as new approaches to budgeting, forecasting,
and reporting.
Typical digitalization approaches involve
significant upfront expenditure. Deploying
IoT devices, SMART sensors, and robotic tools
require expensive new equipment purchases,
employee training, and retrofitting of existing
systems, and the return on investment can be
difficult to assess. However, it is possible to
pursue a more efficient and immediate digitali-
zation strategy by investing in instantly imple-
mentable data-driven solutions that improve
work processes and increase data accessibility
and usability. FieldTwin deployed in real-world
fields can reduce pre-FEED time and invest-
ment by as much as 60%, bringing a return on
investment more quickly.
Contractors savvy enough not to feel threat-
ened by digitization are deploying technology such as FieldAP
to deliver faster delivery of more detailed concepts, including
design options that give their customers choices they typically
would not see at each stage of a project.
McDermott now uses both FieldAP and FieldTwin to build
2D and 3D fields directly in a collaborative web environment
WWW.OFFSHORE-MAG.COM | OFFSHORE FEBRUARY 2019
2/4/19 10:55 AM

to rapidly produce many more concept designs for multiple
fields that include essential information, such as flowline data.
The company is developing concept proposals in 20-30% of
the time taken previously for this process and can respond
quickly to questions from operators and partners by access-
ing critical data directly.
The additional smart functionality of digitalization elim-
inates the pre-FEED CAD work during the proof-of-concept
stage and the need to hire an outsourced engineering firm;
an outsourced team of four drafters, working for two to three
weeks, can cost up to $40,000.
As a result, field development enters FEED with a single,
well-defined option with major design issues decided, risks
and uncertainties understood, and the cost estimate, bud-
gets, and schedules clear. Recently, McDermott designed and
delivered four early design concepts to an oil and gas operator
using FutureOn technology. Previously, the company’s team
would likely only have produced one design because of the
limitations of traditional design methods.
THINKING AHEAD
If executives can harness the right technologies to support
their business strategies and make better use of existing tech-
nology, there could be serious returns: up to $1 billion in cost
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1902OFF43-45.indd 45
PRODUCTION OPERATIONS •
savings or production increases, according to McKinsey. And
the World Economic Forum has suggested that the digital
transformation in the oil and gas sector could unlock $1.6
trillion of value for the industry.
So, industry futurists are saying that in the new era of energy,
companies must move quickly to capitalize on this unique
opportunity and stay competitive. Forward-thinking engi-
neering companies that use these technologies can win more
bids in an increasingly competitive environment in which
operators expect engineering companies to absorb the field
concept costs. Progressive engineering firms can now load
accurate real-time data from real-world coordinates to build
field concepts more rapidly, cost-effectively, and confidently
with precise field options and real-time cost analysis.
The digitalization of offshore assets can seem like a leap
into the unknown, but companies that make that leap begin
to recognize how digitalization can empower them to accom-
plish more, particularly in making more profitable and prompt
decisions in the field. There is now an eagerness to learn how
using smart, cloud-based digital solutions to address daily
decision-making challenges. Companies throughout the sup-
ply chain can see the competitive advantages that digitaliza-
tion brings and are acting quickly to ensure that they do not
get left behind. •
Best-Selling
2nd Edition!
| 2011
2/4/19 10:55 AM
 • SUBSEA

ROV technology facilitates subsea

hardware retrofit job
Diverless solutions help bring production online

TAYLOR PUSKAR AND BRAD BRISTER, OCEANEERING

SATURATION DIVERS traditionally THE CHALLENGE

carry out inspection, maintenance and Executing the project would require the re-route of existing flexible jumpers and the
repair (IMR) work at subsea installations. installation of new flexible jumpers to interface with the existing subsea production sys-
However, it is not always possible to use tem. The project also involved horizontal flange connections, which were recessed in the
divers due to operator safety concerns
over divers working in high current off-
shore environments.
Those safety concerns led one oper-
ator to contact Oceaneering to retrofit
existing subsea hardware at a field off-
shore Trinidad and Tobago, enabling sub-
sea connectivity with remotely operated
vehicles (ROVs).
The solution was to custom-engineer
specialty ROV tools and equipment to
solve the operator’s challenge. The equip-
ment not only proved that ROVs could
perform delicate tasks for retrofitting
subsea hardware and integrating fit-for-
purpose hardware with existing subsea
architecture, but that future IMR work Oceaneering custom engineered the pull in frame (left in the picture) and the API by Grayloc
could be accomplished with engineered Flange Adapter (at right) to convert a field offshore Trinidad and Tobago for diverless
solutions versus diver intervention. capacity. The pull in frame was installed to prepare for pulling in a flexible jumper to connect
The operator opted for a retrofit of at the manifold. The adapter was installed by ROV to provide an interface for the subsea
connection of the flexible jumper. (Images courtesy Oceaneering)
subsea hardware at the field due to the
high cost of using diving services in the
remote location, coupled with weather
and water currents that made the field’s
subsea infrastructure inaccessible to div-
ers most of the time.

THE FIELD
The field had not produced for a three-
year period after the previous operator
unsuccessfully attempted to bring pro-
duction online.
The existing subsea system consisted
of a four-slot manifold connected to
three horizontal trees via flexible well
jumpers, electrical flying leads and steel
flying leads. All the connections had orig-
inally been made with saturation diving A Grayloc clamp (located in blue on the left) was used to make the subsea connection. The
support. yellow subframe (located front-center in the picture) is the portion of the pull in frame that
allowed alignment of the flexible jumper to the manifold.

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manifold’s super structure, making them more difficult to access.
Without the use of divers, no standard solution existed for address-
ing these flanges.
Removing the existing flanges and adopting American Petroleum
Institute (API) flanges to enable remote connectivity would require
ROVs to work in tight spaces. To create a solution, Oceaneering
conducted an ROV access study for the field. The study indicated
that, although the ROV had extremely tight tolerances and some
limitations, tooling and installation aids could be developed to over-
come the challenges and provide a diverless installation solution
to complete a three-well tie-in, bringing the field into production.
BUILDING BRIDGES
The development of specialty ROV tools and installation equip-
ment were needed for this project. ROV-operable flange removal
tooling and an API by Grayloc flange adapter were created to
adapt an API flange to a Grayloc hub to enable a remote clamp
connection. To connect the two flexible jumpers while subsea, a
flexible jumper bridge was built that provided adjustment in three
dimensions. A flexible jumper pull-in frame and flexible jumper
hang-off frame were also designed and built. The hang-off frame
addressed the challenge of holding recovered flexible jumpers on
the side of the vessel during flooding, flange removals, make-ups
and pressure testing.
THE CAMPAIGN
The project was conducted in two offshore campaigns in 1Q and
3Q 2018. During the first campaign, two API flanges were converted
for ROV access, and a wet parked flexible jumper was installed.
The manifold blind flange was removed using the ROV-operable
tools and the flange adapter tool installed. Next, the pull-in frame
was deployed and the flexible jumper recovered to the hang-off
frame, where a Grayloc Remote clamp was installed on the end
fitting. The flexible jumper was then landed into the pull-in frame,
aligned and the remote connection was made.
The second campaign involved re-routing and performing the
diverless conversion of an existing flexible jumper, making a remote
connection on the flexible jumper bridge connection, and install-
ing a new flexible jumper via a pull-in frame. To conduct this work,
the existing flexible jumper connection was removed and shifted
to the bridge. The API flange was adapted by installing the flange
adapter and the new extension flexible jumper was shifted into
the bridge with the remote clamp pre-installed. The bridge was
then aligned and the remote connection made.
The pull-in frame was then deployed and installed onto the man-
ifold. A new flexible jumper was deployed into the pull-in frame
with a yoke assembly installed, aligned and the remote connec-
tion made. The final connections were tested via a multiple quick
connect interface.
CONCLUSION
In addition to the high current conditions and difficulties installing
ROV-friendly equipment onto assemblies built for diver use, there
were several challenges on the project, including an extremely tight
schedule for project planning, engineering, and fabrication and
FEBRUARY 2019   OFFSHORE | WWW.OFFSHORE-MAG.COM47
OGI14V_petro_150218 1
1902OFF46-47.indd 47
SUBSEA •
testing of hardware and installation aids.
The company also had to build equipment and tooling based
on third-party construction drawings without access to perform a
fit check prior to installation. To address this challenge, products
were validated through controlled testing with ROVs at NASA’s
Neutral Buoyancy Laboratory (NBL). Oceaneering’s first step for
the NBL testing process was to provide a storyboard of the opera-
tions for the NBL ROV pilots, as well as ensure that the tooling and
structures that would be used in the pool were compatible with
the facility requirements. After the scope was established, a scope
of supply drawing and the procedure were developed.
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2/18/15 5:17 PM
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@48.txt@ - Full Bleed

ENABLING
COMPETITIVE PROJECTS
PRELIMINARY EVENT GUIDE
March 5-7, 2019 | San Antonio, TX | Henry B. Gonzalez Convention Center | www.SubseaTiebackForum.com

Register by February 1, 2019, and SAVE $150 on full conference registration.

Owned &
Hosted by: Presented by: Supported by:
Produced by:

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1902OFF48-59.indd 48 2/4/19 10:55 AM

John Smiley
Advisory Board Chairman
2019 Subsea Tieback Forum & Exhibition
Senior Subsea Engineer,
Shell International Exploration and Production Inc.
m the volunteer efforts of the Advisory
n. I would like to invite you to attend
the 2019 Subsea Tieback Forum &
Exhibition in San Antonio, Texas. Over
the past several years our industry has
been on a transformation journey where
new behaviors have been integrated
into our day-to-day activities to enable
funding of Subsea projects. These
new behaviors require us never to be
satisfied with the status quo of today
but to continue the transformation
journey to further increase the
attractiveness of Subsea projects.
Since 2001, PennWell has been
supporting this premier Subsea
event that brings together leaders
to engage, network, learn and share
current and relevant knowledge
about the latest happenings in
this dynamic industry segment.
4:21 PM
Register by February 1, 2019, to SAVE $150 on full conference registration.
SSTB_Precon_OFFSHORE_insert 8x10.5.indd 2
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You are invited to attend the 2019
Subsea Tieback Forum & Exhibition
in San Antonio, Texas.
This group of experts includes We will also see a high-level
broad representation from E&P discussion regarding select areas
operators (major, independent and that show how the industry is
national oil companies), contractors continuing to challenge the status
and suppliers; and technologists, quo and continuing to progress the
engineers and managers of all levels transformation journey forward. The
of authority and experience. The presenters will offer an invaluable
conference sessions, exhibition hall, source of insight through the
learning and networking events presentations and through further
provide ample opportunity for discussion in question and answer
engagement and dialogue. sessions and ad-hoc networking
PennWell’s winning formula for this I would like to thank the Advisory
event is ultimately made possible by Board for once again building a
first-class forum, and also thank the
Board, by the gracious support and attendees for making Subsea Tieback
participation of the host, sponsors, and Forum & Exhibition the success
exhibitors, and of course by enthusiastic that it is through your support and
delegates such as yourself! participation. I trust that this year’s
program will offer relevant and useful
This year’s theme is highly
information and industry connections
appropriate for our current
that can generate real value for you
environment: “Enabling Competitive
and your company.
Projects.” The opening presentations
from Shell will set the scene with an
international operator’s perspective.
The technical program includes a
very diverse collection of topics
that will give the audience an inside
perspective into project enabling
technology, new fit-for purpose
project design approaches that have
been developed to meet key project
drivers, project specific lessons
learned spanning from project
framing through decommissioning.
www. SubseaTiebackForum.com
>>> 2
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 ENABLING
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Sunday, March 3
Schedule Of Events* 8:00 AM – 5:00 PM Targeted Exhibitor Move-In (for booths 400+ sq ft) Exhibit Hall 3
*subject to change
Henry B. Gonzalez Convention Center

Monday, March 4
3:00 PM - 5:00 PM Registration Open – Main Lobby
8:00 AM - 8:00 PM Exhibitor Move-In – Exhibit Hall 3

Tuesday, March 5
7:00 AM - 12:00 PM Exhibitor Move-In – Exhibit Hall 3
7:30 AM - 3:00 PM Charity Golf Tournament at the Quarry Golf Club. Registration purchased separately.
8:00 AM - 7:00 PM Registration Open – Main Lobby
8:30 AM - 4:30 PM SUT Workshop (Additional Registration) – Room 217D
3:30 PM - 5:00 PM Leveraging Diversity to Spur Innovation – Room 217A
5:00 PM - 7:00 PM SSTB Opening Reception – Exhibit Hall 3

Wednesday, March 6
7:00 AM - 8:00 AM Delegate Breakfast – Tower View Foyer
7:00 AM - 6:00 PM Registration Open – Main Lobby
8:00 AM - 9:30 AM Opening Plenary Session – Room 217
9:30 AM - 6:45 PM Exhibit Hall Open – Exhibit Hall 3
9:30 AM - 10:30 AM Coffee Break – Exhibit Hall 3
10:30 AM - 12:00 PM Session 1 – Room 217
12:00 PM - 1:30 PM Delegate Lunch – Exhibit Hall 3
1:30 PM - 3:00 PM Session 2 – Room 217
3:00 PM - 4:00 PM Coffee Break – Exhibit Hall 3
3:00 PM - 4:00 PM Ice Cream Social – Exhibit Hall, Booth #408
4:00 PM - 5:30 PM Session 3 – Room 217
4:45 PM Whiskey Tasting – Exhibit Hall, Booth #525
5:15 PM - 6:45 PM Networking Reception – Exhibit Hall 3

Thursday, March 7
7:00 AM - 8:00 AM Delegate Breakfast – Tower View Foyer
7:30 AM - 1:00 PM Registration Open – Main Lobby
8:00 AM - 9:30 AM Session 4 – Room 217
9:00 AM - 1:30 PM Exhibit Hall Open – Exhibit Hall 3
9:30 AM - 10:30 AM Coffee Break – Exhibit Hall 3
10:30 AM - 12:00 PM Session 5 – Room 217
12:00 PM - 1:30 PM Delegate Lunch – Exhibit Hall 3
1:00 PM Entry Forms Due for Harley Davidson Exhibit Hall Giveaway – PennWell Booth
1:15 PM Harley Davidson – Exhibit Hall Giveaway ATV Booth #503
1:30 PM - 7:30 PM Exhibitor Move-Out – Exhibit Hall 3
1:30 PM - 3:00 PM Session 6 – Room 217
3:00 PM - 3:30 PM Student Design Competition - Winner’s Presentation – Room 217
Recognition Awards and Closing Remarks

Register by February 1, 2019, to SAVE $150 on full conference registration.

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SSTB_P
 ENABLING
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Event Host

Sponsors and Supporting Organizations

y. Diamond Gold

ADVANCED
TECHNOLOGY
VALVE

Coffee Break Harley Giveaway Title Wednesday Networking Badge Holder

Silver

INGENIOUS SIMPLICITY

Opening Night Bottled Water Ice Cream Social Notepad & Pen Sponsor
Networking Reception

Delegate Bag Whiskey Tasting

Harley-Davidson Giveaway

Supporting Organizations

4:21 PM
Register by February 1, 2019, to SAVE $150 on full conference registration.

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 ENABLING
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2019 Subsea Tieback Forum & Exhibition Advisory Board

Advisory Board Chairman Conference Director

John Smiley David Paganie
Senior Subsea Engineer Chief Editor
Shell International Exploration Offshore magazine
& Production Inc.

Erin Balch Ian Ramsay

Program Manager VP, Offshore Development
Wood Murphy Oil Corporation

Maria Bulakh Randy Seehausen

Senior Subsea Engineer Subsea Engineering Manager
Aker Solutions INTECSEA

Mark Carter Karl Schnakenburg

VP, Integrated Solutions Global Engineering Advisor
OneSubsea BHP

Nancy Chafe Jon Sonka

Subsea Operations Engineering Supervisor Engineering Lead
Anadarko Petroleum Corporation ExxonMobil

Joey Clements Pete Stracke

Senior Director Commercial Offshore Facilities Manager - US & Mexico
McDermott International Equinor

Bruce Crager Chris Tam

Executive VP VP, New Ventures
Endeavor Management Saipem America

Antonio Critsinelis Steve Whitaker

Pipelines & Installation Engineering Team Manager Director of Projects
Chevron Energy Technology Co. Hess Corporation

Chris Egan Lisa Winfrey

Program Technical Manager Subsea Engineering Service Leader
TechnipFMC Baker Hughes, a GE Company

Mike Ellis James Wiseman

VP, Subsea Projects Deepwater Project Manager
Oceaneering International Noble Energy

Eric Hevle Jeremy Woulds

Development & Production Manager GoM Director of Sales & Marketing GoM
Ecopetrol America, Inc. Subsea 7

Julie Ingram George Zener

Director of Subsea Engineering GSS Engineering Director
College of Engineering, TAMU BP

Tony Matson
VP of Projects
Trendsetter Engineering

Register by February 1, 2019, to SAVE $150 on full conference registration.

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 ENABLING
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ENABLING
COMPETITIVE PROJECTS
Operator/Group Registration Plans

The more attendees you send, the more money you’ll save!
Subsea Tieback Forum’s firm foundation is its conference program. Suited for operators and service companies, the
content addresses operational issues, challenges, and solutions associated with global deepwater subsea operations.

This year, Subsea Tieback will focus on enabling competitive projects while facilitating conversations among strategic
decision makers through networking and focused presentations with question and answer sessions.

DISCOUNTED DELEGATE RATES Full conference attendees gain access to

Subsea Tieback Forum & Exhibition • Delegate breakfasts and lunches on Wednesday
and Thursday
Full Early Bird
Individual $1,145.00 $995.00 • All conference sessions
Exhibitor Delegate $725.00 $625.00 • Exhibit hall, including scheduled receptions
Group Plan – Operators • Coffee breaks in the exhibit hall
Group of 3-9 $595.00 Per person
Group of 10+ (Unlimited) $5,500.00 Flat rate

Group Plan – Non Operators

Group of 3-9 $875.00 $750.00 Per person
Group of 10+ $775.00 $650.00 Per person

INTERESTED IN SENDING MORE

ATTENDEES? CONTACT US!

Desiree Reyes
713.963.6283
DesireeR@PennWell.com

4:21 PM
Register by February 1, 2019, to SAVE $150 on full conference registration.

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 ENABLING
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Tuesday, March 5, 2019

8:00 AM – 8:30 AM Breakfast
8:30 AM – 8:35 AM Introduction
Don Schlater - SUT Treasurer and Training Committee Chairman
8:35 AM – 10:15 AM Session 1: Setting The Scene
Karl Schnakenburg, Global Engineering Advisor: BHP Petroleum
• Journey into Deepwater
• Subsea Developments - Drivers and Issues
SUT Pre-Conference • Example Layouts
• Key Components
Workshop • Subsea Tiebacks
10:15 AM – 10:30 AM Morning Break
Key Elements Of 10:30 AM – 12:15 PM Session 2: Subsea Elements
Subsea Tiebacks Christopher Curran, Senior Consultant; CJC Enterprises LLC
• System Considerations
Room 217D • Subsea Completions
A one-day seminar designed to educate people • Control Systems
on the key elements of subsea tiebacks – • Manifolds and Tie-In Systems
subsea, umbilicals, risers, flowlines (SURF) – 12:15 PM – 1:00 PM Lunch
to be conducted under the auspices of the
Society for Underwater Technology (SUT). 1:00 PM – 2:30 PM Session 3: Umbilicals, Risers and Flowlines
Chuck Horn, Senior Advisor: Nanoridge Materials, Inc
Additional registration fee: $500 if paid • Flowline Tie-Ins
before February 8, 2019; $600 if paid after • Offshore Flowlines Pipelines
February 8, 2019. See page 2 for registration • Subsea Production Control Umbilicals
information.
2:30 PM – 2:45 PM Afternoon Break
For registered professional engineers,
this course counts for six (6) professional 2:45PM – 3:45 PM Session 4: Production Handling Agreements
development hours. Don Schlater, Senior Technical Advisor; Retired, BP
3:45 PM – 4:30 PM Wrap-Up and Q&A

Network after the SUT pre-conference workshop with

colleagues over food and libations.

Register by February 1, 2019, to SAVE $150 on full conference registration.

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 ENABLING
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RY
P L E N Atrants
Tuesday, March 5, 2019 All regis ted
are invi d! Preliminary
3:30 – 5:00 PM Leveraging Diversity to Spur Innovation – Room 217A to atten

Summary An evolving offshore workforce is spurring subsea technology development

Conference Program
which is enabling producers to access increasingly challenging reservoirs.
This session will hear from a diverse group of thought leaders from industry
For additional conference details,
and academia, in a panel discussion format, that are driving the innovation
and change. The panelists will share how their experiences are advancing please visit:
subsea development and carving out rewarding career paths. www.SubseaTiebackForum.com/
Moderator Kara Byrne, Americas Commercial Leader – Control Valves, Flow & Process conference
Technologies; Baker Hughes, a GE company, and Past President; Women's
Energy Network Houston Chapter
Panelists Dr. M. Katherine Banks, Vice Chancellor, Engineering; Texas A&M University
Zenon Medina-Cetina, Associate Professor at Texas A&M
(Civil, Ocean Petroleum & Geography) & Chair & President,
Society of Underwater Technology USA
Astrid Skarheim Onsum, Offshore Wind Business Head;
Aker Solutions Norway (Invited)
Stacy Fresquez, Vito Project Engineer; Shell
Florencia Rodríguez Aponte de Nakhlé,
Subsea Systems Team Lead, Anchor Project; Chevron
5:00 - 7:00 PM Opening Night Exhibit Hall Reception

Wednesday, March 6, 2019

TE
7:00 – 8:00 AM Delegate Breakfast – Tower View Foyer K E Y N Otrants
All regis ted
8:00 – 9:30 AM Keynote Plenary Session – Room 217 A are invi d!
to atten
Welcome and Introduction
David Paganie, Conference Director and Chief Editor; Offshore magazine
Advisory Board Chairman’s Opening Remarks
John Smiley, Senior Subsea Engineer;
Shell International Exploration & Production Inc.
Keynote Presentation
Speaker to be announced
Scene Setting Presentation
GT Ju, General Manager of SURF in Deepwater Projects;
Shell International Exploration & Production Inc.
9:30 – 10:30 AM Coffee Break – Exhibit Hall

4:21 PM
Register by February 1, 2019, to SAVE $150 on full conference registration.

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 ENABLING
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Session 1: Technology Application, Subsea Boosting – Room 217

10:30 AM – 12:00 PM
Preliminary
Dalmation Subsea Multiphase Boosting System: Installation,
Commissioning and Operations Conference Program
William “Butch” Taggart, Senior Engineering Advisor;
Murphy Exploration & Production Co.
For additional conference details,
Perdido/BC10 Caisson Electric Submersible Pumps: Operational
Performance please visit:
Andrew Merlino, Subsea Boosting Engineer; www.SubseaTiebackForum.com/
Shell Exploration & Production Company conference
Subsea Pumping Integration to Who Dat Field
Glenn Mediamolle Jr., Construction Manager; LLOG Exploration
12:00 – 1:30 PM Delegate Lunch – Exhibit Hall
1:30 – 3:00 PM Session 2: Before First Oil – Room 217
Requirement Rationalization Journey –
Using Vendor & Industry Standards
Sohail Izhar, Principal Technical Expert – Subsea & Upstream Specialty
Controls; Shell
Guyana Liza Phase 2 Water-Alternating-Gas (WAG) Concept,
Capability and Challenges
Kathleen Casstevens, Liza Phase 2 Flow Assurance Lead;
ExxonMobil Production Company
BP Mad Dog 2 – Teaching an Old Dog New Tricks
John Boyle, Subsea Project Manager; BP
3:00 – 4:00 PM Coffee Break – Exhibit Hall
3:00 – 4:00 PM Ice Cream Social – Exhibit Hall, Booth #408
4:00 – 5:30 PM Session 3: Reuse, Leave Or Retrieve – Room 217
Equipment Recycling – Shell’s Success in XT Refurbishment to
Lower Field Cost
Robert Byers, Team Lead – Marine Construction and Aftermarket Support;
Shell International Exploration & Production Inc.
Subsea Decommissioning Panel: This session will present examples of
subsea decom experiences to date, including lessons learned which can be
applied to future projects. The focus will be on “leave vs. retrieve”.
Panelists Larry Johnson, Decommissioning Advisor; BHP
Mike Clarke, Project Manager; Murphy Exploration & Production Co.
Rick Cody, DW D/C/I Decom Consultant; Fieldwood Energy
Stephen P. Dessauer, Deputy Regional Supervisor,
Regional Field Operations; BSEE
Moderator Bruce Crager ; Executive VP; Endeavor Management
4:45 PM Whiskey Tasting – Exhibit Hall, Booth # 525
5:15 – 6:45 PM Networking Reception – Exhibit Hall

Register by February 1, 2019, to SAVE $150 on full conference registration.

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Thursday, March 7, 2019

Preliminary
7:00 – 8:00 AM Delegate Breakfast – Tower View Foyer
8:00 – 9:30 AM Session 4: Execution Achievements/Challenges – Room 217
Conference Program
Subsea Equipment Failures
Scott Higgins, BP Advisor-Subsea Hardware; For additional conference details,
BP Exploration Operating Company Limited please visit:
The Shah Deniz 2 Subsea Project, Technology Development www.SubseaTiebackForum.com/
and Enablers
Tim Farrant, Subsea Engineering Manager; BP conference
K2 Riser Base Gas Lift
Stephen Faleye, Western Gulf of Mexico Projects Lead; Anadarko
9:30 – 10:30 AM Coffee Break – Exhibit Hall
10:30 AM – 12:00 PM Session 5: Flow Assurance – Room 217
LDHI Selection, Deployment and Operating Experience with
Long GoM Subsea Tieback
Mark Edwards, Principal Production Chemist; Shell International E&P
First Year Review of Novel Subsea Chemical Injection Technologies
at the Stampede Field Development
Jason Harry, Subsea Engineering Advisor; Hess Corporation
Liza Phase 1 Asphaltene Management
Gizem Ersoy Gokcal, Advanced Flow Assurance Engineer;
ExxonMobil Production Company
12:00 – 1:30 PM Lunch – Exhibit Hall Conference Alternates
1:30 – 3:00 PM Session 6: Continuing To Challenge The Norm – Room 217 Risk-Based Approach to
Establishing Vito Flow Assurance
 igitalOilfield–LearningsfromOtherIndustriesandRevealingthe
D
Strategy
Possibilities
Karthik Ramanathan, Senior Flow
James Wiseman, Noble Energy
Assurance Engineer; Shell
GIS, A Foundation of Subsea Digitalization
Perdido CIMV and Defoamer
Tom O'Donnell, Chevron
Delivery Learnings
Advancements in Leak Detection Caleb Wells, Subsea Surveillance
James Fletcher, BSEE Engineer; Shell Exploration &
Field of the Future – ArtificialIntelligenceApproachesforSubseaTiebacks Production Company
Equinor
 ugmentedRealityPavingtheWayforIncreasedEfficiencyandSafety
A
Manuel Parente, Abyssal
Additional Panelist Justin Whitehead, TechnipFMC
3:00 – 3:20 PM Student Design Competition Winner Presentation
3:20 – 3:30 PM Presentation of Speaker Awards
Chairman’s Closing Remarks
$500 American Express Gift Card Drawing

4:21 PM
Register by February 1, 2019, to SAVE $150 on full conference registration.

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 Conference Sessions
EXIT
BATHROOMS BATHROOMS
UP TO
CONCOURSE
ENABLING
COMPETITIVE PROJECTS
LEVEL

Exhibit Hall 3
362 363 462 463 562
Deep
Water
308 Johns Manville Industrial Insulation
661 Meet the
360 361 460 461 560 561 Speaker 860

M
Group

Pennwell
358 659 760 858 859
Maritime
Developments
Hunting
Energy 657 756
728 LANKHORST ENGINEERED PRODUCTS
356 357 456 856 857
LTD Services
445 LORD Sensing – Stellar Technology

O
CEJN Bevel Subsea
North Tech Pacson
354 355 454 455 555 655 754 755 854 855
625 LTS ENERGY
James 742 LYNDEN INTERNATIONAL
Bayou
531 Magma Global Ltd
350 New 650 751 850 851
Wasco
Reserved Industries
Unique Matrix
C-Kore

Delegate Lunches
348 349 MTE
Engineered
449
James
548 549 648
System 749 848 849
723 Mako Subsea
339 MARINE & INDUSTRIAL
Stress 647 746
346 347 446 LORD 546 EDG, Inc Engineers 747 846 847
Sensing Woods

455 Maritime Developments Ltd (MDL)

Hole Nexans
344 Cladtek 445 544 545 644 744 745 844 845
Intl Nortech

648 Matrix Composites & Engineering

Lynden Sensorlink
342 343 442 643 742 743 842 843
Airborne SPIR
Oil
340
STAR
441 Reserved 841 525 McDermott
338 Tenaris Ellwood
538
Oil States
Industries
Balmoral
Offshore Reserved 839
446 MTE Engineered Materials, LLC.
Group Inc
Engineering
548 New Industries
Samson STATS
336 337 437 536 537 637 737 837

643 Nexans/Nortech
Doxsteel
833
419 Oceaneering
TE Tracerco Magma 733 832
537 OIL STATES INDUSTRIES
CONNECT-
IVITY Global LTD AFL Intermoor
GTA Inc
330 730 731
331 Sandvik 431 530 531 830 831

Marine
Material Walther
Präzision Lankhors 403 ONESUBSEA
328 339 428 629 728
415 Orcina Limited
829
Sapien

126 227 326

Quest Sonardyne
Integrity
Wood McDermott LTS Supreme
Energy Integrated
America
727 826 827
655 PACSON VALVES LIMITED A
ITP O
510 PARADIGM FLOW SERVICES
Interpi 625 825
124 125 325 424 425 525 724
225 324
Mako
Subsea
122 723 822 823
319 Parker IPD- Autoclave Engineers Group
F
120 Shawcor Parker Parker
Oceaneering DOF Subsea Recharge
Lounge
Holloway
Houston
820 821 418 Parker Quick Coupling - Subsea G
Connectivity Products
IPD Quick
Autoclave
118 119 219 319 418 419 519 719 818 819 w
817
309 PERMA-PIPE OIL & GAS
Orcina 325 QUEST INTEGRITY GROUP, LLC H
115 215 415 815
411 Saab Seaeye
Hornbeck
Offshore Hoffer Enpro Deep Galperti
Flow
Subsea Down Inc.
212 Geospace 412 613 813
727 SAIPEM AMERICA
112 113 213 312 512
Offshore Saab
Seaeye Paradigm BP Glenair
511
336 SAMSON
111 210 211 Johns 711 811
110 311 411 510 Coastal 710
Manville
Wacker Offshore
Perma Intecsea Hydrasun
108 109 208 209 308
309 408
ATV Harley
609 708
TUBACEX
809
428 SANDVIK MATERIALS TECHNOLOGY
106
Giveaway 707 806 807
743 Sensorlink AS
Arconic Advanced
219 SHAWCOR
OneSubsea Freudenberg WFI 805
EXIT
104 105 Energy Technology 804
Xvision Oil & Gas INTL
Software Systems Value Technologies
102 103 202 203 303 403 503 603 703 802 803 424 Sonardyne Inc
441 SPIR STAR® Ltd.
EXIT EXIT EXIT
BATHROOMS BATHROOMS
EXIT EXIT
536 STATS Group
Registration Entrance Registration
644 Stress Engineering Services
Hall 3 724 Supreme Integrated Technology, Inc.
431 TE CONNECTIVITY
Exhibitor List 2019 337 Tenaris
503 ADVANCED TECHNOLOGY VALVE 511 DEEP DOWN INC. 710 Glenair 530 TRACERCO
730 AFL 661 DeepWater Buoyancy 331 GTA, Inc. 707 TUBACEX – SCHOELLER BLECKMANN
EDELSTAHLROHR
340 Airborne Oil & Gas 431 Delta SubSea 412 Hoffer Flow Controls
349 UNIQUE SYSTEMS INC
503 Arconic Energy Systems 519 DOF Subsea 719 Holloway Houston
431 VIV Solutions
637 BALMORAL OFFSHORE 733 Doxsteel Fasteners 312 Hornbeck Offshore Operators, LLC
ENGINEERING 208 Wacker Chemical Corporation
545 EDG, Inc. 555 Hunting Subsea Technologies
549 BAYOU WASCO INSULATION, LLC 629 Walther Praezision
437 Ellwood Group, Inc. 708 HYDRASUN
454 Bevel Tech Group Inc. 703 WFI International
512 Enpro Subsea 408 INTECSEA
431 Castrol 425 Wood
603 Freudenberg Oil & Gas Technologies 731 INTERMOOR
354 CEJN North America 544 Woods Hole Group
613 Galperti Engineering and Flow 324 ITP Interpipe
647 C-Kore Systems Ltd. Control USA Inc. 202 Xvision Software AS
650 James Fisher Subsea Excavation
442 Cladtek International 311 Geospace Offshore 431 Zetechtics Ltd

Register by February 1, 2019, to SAVE $150 on full conference registration.

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 Petroleum Events

More Branding and Lead Generation

Opportunities from PennWell Events
Events Calendar

PennWell Conferences and Exhibitions deliver market-leading information in the areas of critical importance to the oil and
gas industry. These high-quality events attract audiences of executive decision makers – those decision makers critical to the
success of your marketing effort.

CONFERENCE & EXHIBITION

Addressing Deepwater
Operational Challenges
Feb 5 - 7, 2019
Galveston, TX
www.deepwateroperations.com
Innovating Design, Engineering, Solutions for Global Emerging Trends in Building Towards the
Construction, Transportation, Deepwater Subsea Operations Petroleum Data Future of Energy
and Installation
Feb 5 - 7, 2019 Mar 5 - 7, 2019 May 21 - 22, 2019 Sep 9 - 10, 2019
Galveston, TX San Antonio, TX Houston, TX Houston, TX
www.topsidesevent.com www.SubseaTiebackForum.com www.pnecconferences.com www.offshorewindsummit.com

Hosted by: Hosted by: Hosted by:

Event Contacts

DAVID PAGANIE DESIREE REYES ANN-MARIE DOWLING PENNWELL PETROLEUM GROUP

Conference Director
Phone: +1 713 963 6217
Email: davidp@PennWell.com
LISA GASAWAY
Event Director
Phone: +1 918 832 9245
Email: lgasaway@PennWell.com
Exhibit & Sponsorship Sales Manager
Phone: +1 713 963 6283
Cell: +1 281 785 7952
Email: desireer@PennWell.com
Sr. Event Operations Manager 1455 W. Loop South, Suite 400
Phone: +1 918 831 9523 Houston, TX 77027
Email: adowling@PennWell.com Phone: +1 713 621 9720
www.PennWell.com
MICHAEL DONNELL
Team Manager of Exhibit Services
Phone: +1 918 831 9707
Email: michaeld@PennWell.com

GAIL KILLOUGH MYLA LOWRANCE

Conference Manager Marketing Director, Petroleum Group
Phone: +1 713 963 6251 Phone: +1 713 963 6204
Email: gailk@PennWell.com Email: MylaL@PennWell.com

4:21 PM SSTB_Precon_OFFSHORE_insert 8x10.5.indd 12 1/31/19 4:21 PM

1902OFF48-59.indd 59 2/4/19 10:55 AM
 • EQUIPMENT & ENGINEERING
Airborne Oil & Gas wins contract for
TCP Jumper off West Africa
AIRBORNE OIL & GAS B.V. says it has been awarded a con-
tract from Total to supply a TCP (thermoplastic composite
pipe) jumper for a deepwater project in West Africa. The field is
located approximately 150 km (93 mi) offshore in water depths
of up to 1,600 m (5,249 ft). The contract follows the successful
completion of a rigorous testing program, in which Total qual-
ified Airborne Oil & Gas’ TCP Water Injection Jumper for per-
manent subsea applications.
Paul McCafferty, Vice President Europe & Africa at Air-
borne Oil & Gas, said: “This contract award, from superma-
jor Total, demonstrates our success in the subsea market
with our TCP technology on the basis of a compelling busi-
ness case, field proven and robust materials, and a thorough
qualification program. We are delighted with this contract
award from Total, who has extensive and deep understand-
ing of composite materials and TCP, and with whom we
completed a qualification program in accordance with the
standard DNVGL-ST-F119.”
60
1902OFF60-61.indd 60
The Airborne Oil & Gas TCP
Jumper is spooled in preparation
for a project offshore West Africa.
Under this contract, Airborne Oil & Gas will provide Total
with a 5.2-in. ID, 370 bar design pressure TCP Jumper for water
injection. The TCP Jumper is intended to be terminated in
country and installed using a subsea pallet, deployed from a
small vessel. The TCP Jumper is non-corrosive, lightweight,
flexible, spoolable with a small minimum bend radius and
can be terminated at any location along the pipe. This pro-
vides the end user with project value in lower total installed
cost through cost-effective transportation, and removing the
need for metrology, while de-risking the project schedule.
The company says that the TCP Jumper can be manufac-
tured and shipped in long continuous lengths, stored onsite
and when required for the project, cut to length and termi-
nated within hours, ready to be deployed. •
WWW.OFFSHORE-MAG.COM | OFFSHORE   FEBRUARY 2019
2/4/19 10:55 AM
 EQUIPMENT & ENGINEERING •

Pragma gets go-ahead for downhole

steam valve testing
PHARIS ENERGY and the Oil and
Gas Technology Centre have autho-
rized Pragma Well Technology to pur-
sue manufacture and prototype testing
of its Downhole Steam Injection Valve
(DSIV) following a feasibility study.
According to Pragma, the surface-con-
trolled DSIV is engineered with special
materials and various innovative features
to maximize reliability in extreme down-
hole conditions.
It should become the first steam
injection valve to comply with UK safety
regulations, capable of providing con-
tinuous high-pressure steam injection
and operable at temperatures of up to
343°C (649°F).  
It should also be suited to operations
in extreme high temperature applications
in other parts of the world, i.e. produc-
tion or geothermal wells.
The production safety valve variant
(the Extreme Temperature Safety Valve,
or ETSV) also incorporates an electric
submersible pump cable bypass capa-
bility to facilitate installation of down-
hole pumps. 
Pharis sees the DSIV as a critical
Conceptual illustration of Pragma’s Downhole Steam Injection Valve.
enabler for implementation of an offshore (Courtesy Pragma Well Technology)
steam-flood and to safeguard well integ-
rity, as it progresses a steam-assisted,
phased development of the Pilot heavy- potential to unlock an additional 4 Bbbl of otherwise stranded reserves from the shal-
oil field in UK North Sea block 21/27a. low heavy-oil fields that have already been discovered in the basin.
Initially it plans a steam-flood trial “Steam-flooding has the potential to transform the economic prospects of a num-
injecting up to 36,000 b/d of cold-water ber of marginal fields, attract new investment to the basin and stimulate exploration
equivalent of steam into the southern of previously neglected plays.
part of the field. “The creation of a thoroughly tested and appropriately rated safety valve is critical
A full-scale steam-flood could poten- to enable these operations to commence, and for steam-based recovery techniques
tially recover 50% of the field’s in-place oil to make their contribution to maximizing economic recovery from the UKCS.”
(more than 120 MMbbl), Pharis claims, Gary Smart, CEO of Pragma, added: “Our technology can withstand extremes of
around three times the yield using con- temperatures because it uses premium corrosion-resistant materials and full metal-
ventional cold water-flood techniques to-metal seals for reliable function over the life of the well. This sets it apart as the
that have been applied in most North only valve of its type on the market with these capabilities.” •
Sea heavy-oil projects to date.
Steve Brown, CEO of Pharis, said:
“Applying steam-flooding technology in
the UKCS [UK continental shelf] has the

FEBRUARY 2019   OFFSHORE | WWW.OFFSHORE-MAG.COM61

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 • BUSINESS BRIEFS
PEOPLE
The Petrobras board of directors has elected
Roberto Castello Branco as CEO. He succeeds
Ivan de Souza Monteiro. In addition, the board
has dismissed Nelson Luiz Costa Silva from
the position of chief strategy, organization and
management system executive officer and Jorge Sawan
Celestino Ramos from the position of chief
refining and natural gas executive officer. Sol-
ange da Silva Guedes, chief exploration and
production executive officer, and Eberaldo de
Almeida Neto, chief human resources, HSE and
services executive officer will occupy these po-
sitions, without prejudice to their current
Vermeijden
functions.
ONE-Dyas has named Robert Baurdoux as
CEO, Alexander Berger as executive director,
and Chris de Ruyter van Steveninck as CFO.
Royal Dutch Shell plc has appointed Wael
Sawan as upstream director, effective July 1,
2019. He will become a member of the executive
committee and will take over from Andy Brown. Peters
Thierry Pilenko, executive chairman of the
TechnipFMC board of directors, has decided to
retire, effective May 1, 2019. CEO Doug Pferde-
hirt will assume the role of chairman of the
board, and Pascal Colombani, current director,
will be appointed to lead independent director,
effective May 1, 2019.
The Halliburton board of directors has elected Peace
Jeff Miller, the company’s president and CEO,
as chairman of the board. The company also has
promoted Mark Richard as president of the
Western Hemisphere. He succeeds Jim Brown.
Aker BP has appointed David Torvik Tønne
as CFO and Lene Landøy as director with re-
sponsibility for strategy and business develop-
ment. Both will be a part of the company’s ex- Laurin
ecutive management team.
Christiaan Vermeijden has joined Gardline
as CEO. He replaces Gerben Eggink.
KrisEnergy Ltd. has appointed James Parkin
as COO.
SNC-Lavalin has appointed Craig Muir as
president, Oil & Gas. Effective April 2019, Muir Salma
will succeed Christian Brown.
Neptune Energy has hired Eko Lumadyo as managing di-
rector, Indonesia.
Seadrill Ltd. CFO Mark Morris will step down in June 2019.
Crondall Energy has promoted Anna-Louise Peters to
managing director. Her predecessor, Duncan Peace, will con-
tinue to oversee Crondall Energy’s group activity as group
managing director. He will also lead the technology business
as managing director of Buoyant Production Technologies.
62
1902OFF62-64.indd 62
Maersk Drilling has appointed Claus V. Hem-
mingsen as chairman of the board of directors
and Robert M. Uggla as vice chairman. Kath-
leen McAllister, Robert Routs, and Martin
N. Larsen have been appointed to the board of
directors.
Cooper
TETRA Technologies Inc. has appointed pres-
ident and COO Brady M. Murphy as a member
of the board of directors.
Lean Marine Sweden AB has named Mikael
Laurin as CEO.
Dr. Tauseef Salma has joined Flowserve
Corp. as vice president, Marketing &
Technology.
Sponchia
Xodus Group has appointed Phil Cooper as
corporate development director.
Dr. Adel Chaouch has been named an inde-
pendent non-executive director of Ophir’s board.
The International Marine Contractors Asso-
ciation has appointed Andre Rose as technical
adviser - competence & training, remote systems
Gonzalo
and ROV.
Mats Ekstrøm has joined C-Kore Systems
as sales manager – Scandinavia.
Crowley Maritime Corp. has named Parker
Harrison as senior vice president of procure-
ment and risk management.
Element Materials Technology has appointed
Matt Hopkinson as executive vice president
Warn for the oil and gas and infrastructure sector.
TAM International Inc. has promoted Barton
Sponchia to vice president Western
Hemisphere.
ProSep has hired Raul Gonzalo as regional
sales and service manager in the Middle East.
Brendan Warn has joined Total as senior
vice-president, Investor Relations. He succeeds
Stansbury Mike Sangster.
OFS Portal LLC has promoted Mimi Stans-
bury to senior vice president of Finance and
Administration.
Karen Nash has joined Xodus Group as social
impact specialist.
Steffen Bay and Bart Remmerie have joined
Nash the NHV Group as chief commercial and pro-
curement officer and chief human resources
officer, respectively.
COMPANY NEWS
Subsea equipment rental, sales and services provider Ashtead
Technology has formed a strategic partnership with 4Subsea.
Ashtead will add 4Subsea’s sensors to its IMR services portfolio,
also gaining access to 4Subsea’s specialists in subsea production,
well intervention, and drilling. In turn, 4Subsea should strength-
WWW.OFFSHORE-MAG.COM | OFFSHORE   FEBRUARY 2019
2/4/19 10:55 AM

en its position in the global sensor sector by accessing hardware
and digital services delivered through Ashtead’s network which
includes facilities in Aberdeen, Abu Dhabi, Halifax, Houston,
and Singapore.
Repsol Sinopec Resources UK has awarded Peterson a
new long-term integrated logistics contract to support the
company’s North Sea operations. In the process, marine and
quayside operations will switch from Peterhead on the Scottish
east coast to Aberdeen, with integrated supply base, logistics,
transport and warehousing operations provided from Peterson’s
Aberdeen Operations Centre.
Stress Engineering Services Inc. (SES) has achieved an
American Bureau of Shipping (ABS) Recognized Specialist
certification for its condition-based monitoring (CBM) services.
ABS certified SES’ process for identifying and tracking damage
in drilling riser joints, including the telescopic joint. The certi-
fication will move to a life-cycle condition-based monitoring,
maintenance and inspection system approach that is deployed
and performed on the mobile operating drilling unit. The CBM
approach will remove uncertainties surrounding damage of
riser joints and will allow the owner to determine whether the
drilling riser should be redeployed or replaced. The certification
is valid for three years, and SES will be listed on the ABS External
Specialist database.
ExxonMobil has signed a partnership agreement with IBM
to advance the application of quantum computing in next-gen-
eration energy and manufacturing technologies. Under the
arrangement, ExxonMobil becomes the first energy company
to join the IBM Q Network. This comprises Fortune 500 com-
panies, start-ups, academic institutions and national research
labs worldwide working to advance quantum computing and
explore practical applications for science and business.
Aqualis Offshore has opened an office in Perth, Western
Australia, to support oil and gas developments in the Australasia
region.
ABS has granted approval of product design assessment to
Dongsung Finetec International Inc. for its spray foam
insulation. This is designed to improve insulation efficiency,
minimize maintenance costs, and reduce the application time.
THREE60 Energy has acquired Aberdeen-based North Sea
Construction and Commissioning (NSCC). The latter, formed
in 2017, provides construction, mechanical completion and
commissioning support services for the offshore and onshore
oil and gas industry, covering all aspects of topsides infrastruc-
ture construction, heavy-lift, accommodation flotels, rig mo-
bilization and walk-to-work vessel-supported campaigns.
Rosetti Marino has decided not to go ahead with its planned
acquisition of the Heerema Fabrication Group (HFG) yard
in Zwijndrecht, the Netherlands, despite signing a letter of intent
in December. The company took the decision in light of recent
adverse market conditions and the uncertainty for future pros-
pects for the yard. HFG management has informed staff at the
Zwijndrecht yard about the intended closure, with 80 employees
set to be made redundant. However, the company will continue
FEBRUARY 2019   OFFSHORE | WWW.OFFSHORE-MAG.COM63
1902OFF62-64.indd 63
BUSINESS BRIEFS •
offshore construction operations at its locations in Vlissingen,
the Netherlands and Opole, Poland.
Ikon Science Ltd. has acquired Perigon Solutions, a
wellbore data management and visualization solutions
provider.
Wild Well Control, a Superior Energy Services company,
has expanded its Montrose facility in South Ferryden, UK. The
facility maintains the WellCONTAINED subsea containment
system.
MHI Vestas Offshore Wind has chosen Boston for its US
headquarters.
Steel wire rope fabricator Franklin Offshore International
has entered an exclusive co-operation agreement with Lank-
horst Ropes to offer fiber rope slings for heavy-lift offshore
projects in Southeast Asia. Under the agreement, Franklin
Offshore will be sole distributor and representative for the sale
of Lankhorst’s heavy-lift synthetic rope slings in the region.
AFGlobal and MHWirth have entered into a distribution
agreement, providing the managed pressure drilling (MPD)
market with a comprehensive package for deepwater rig systems.
This non-exclusive agreement enables MHWirth to offer AF-
Global MPD equipment for sale within its rig equipment busi-
ness. MHWirth can now offer the MPD kit as part of its newbuild
and retrofit packages.
AFGlobal has also signed a frame agreement with ExPert
Riser Solutions, LLC that will combine the companies’ marine
drilling riser inspection and drilling riser repair services.
BP has extended Sulzer Wood’s North Sea pump mainte-
nance services contract until 2022. The contractor will provide
support to the Glen Lyon, Clair and Clair Ridge facilities west
of Shetland with a view to improving the reliability of the pump-
ing equipment and optimizing life-cycle costs. Parent company
Sulzer is a global rotating equipment supplier to BP.
RESMAN AS has acquired Restrack AS in a share purchase
agreement.
Sperre Coolers AS has rebranded Hydroniq Coolers AS.
Sphera has acquired Petrotechnics, a provider of opera-
tional risk software for hazardous industries.
Paradigm Intervention Technologies has achieved cer-
tification to ISO 45001:2018 Occupational Health & Safety
Management Standard.
Saudi Aramco has signed a memorandum of understanding
with Raytheon to form a joint company to develop cybersecurity
services in Saudi Arabia and the wider Middle East region. It
will market and provide integrated defensive cybersecurity
software and hardware capabilities and perform R&D
activities.
Survitec has received DNV GL Z-17 certification as a
class-approved service provider for all DNV GL-classed vessels
operating various brands of safety and survival equipment,
including lifeboats, liferafts, marine evacuation systems and
fire-fighting equipment and breathing apparatus.
LORD Corp. has received API’s standard 16F testing certi-
fication for telescopic joint packers.
2/4/19 10:55 AM
 • BEYOND THE HORIZON
Smart spending can enhance
production from existing infrastructure
THE HUNT FOR OIL is often focused on exploration activity. But
what if additional hydrocarbons could be found right where there
is existing infrastructure? It is a strategy that offshore operators
are increasingly taking; the smart dollars are being spent on getting
more out of existing fields, using techniques like well
intervention.
At the European Offshore Well Intervention Conference, in April
2018, McKinsey & Co’s Energy Insight’s team noted that, based on
a benchmark of 46 offshore assets, one in eight wells were shut in.
Add underperforming wells to that number and multiply to reflect
the global potential and you get a very big number indeed. There
is undoubtedly a prize to be had.
So why have operators not been doing more? They face a number
of challenges, including broader business drivers, production teams
not having buy-in from the decision makers, limited budgets and,
perhaps, having had a costly intervention project backfire in the
past.
Some oil companies are seeing the benefits. Equinor, for example,
has been using light well intervention (LWI) vessels – instead of
large expensive rigs – for many intervention projects since 2000,
supported by long-term contracts with suppliers and vessel owners.
Others like ExxonMobil and Chevron also have LWI departments
and we have seen an uptick in other operators engaging in this
space over the past year.
So, what is changing? The pain of the oil price has had a lot to
do with it. Oil companies are having to be more innovative with
how they spend their dollars, while finding new ways to improve
their production profiles. That means looking at some of the more
symptomatic problems they have. This could be an increasing
amount of water cut in produced hydrocarbons, wax or scale
deposition, or even unknown problems where a well just is not
performing. These are issues that also have a direct impact on
infrastructure. Pipelines not being used to capacity that are partly
blocked with wax – where what is going through is mostly water
– do not make good business sense.
As an operator, your pipe is a certain size and, ultimately, has a
choke point. The quality of produced hydrocarbons, how much
you can fill your pipe with, and for how long, are three key com-
ponents. You can affect all of these with some form of LWI, from
putting proppant into the reservoir to improve the quality of what
you get out, dosing a well with chemicals to de-water, or sliding
sleeve to improve production.
Where before the industry tended to focus on minimizing uplift
costs by taking out what were perceived as ‘unnecessary services,’
This page reflects viewpoints on the political, economic, cultural, technological, and environmental issues that shape the future of the petroleum industry.
Offshore Magazine invites you to share your thoughts. Email your Beyond the Horizon manuscript to David Paganie at davidp@pennwell.com.
64
1902OFF62-64.indd 64
things are changing. The industry is still in a period where the oil
price is at the right level to drive innovation around value add, with
a keen interest in proven solutions that move the needle.
As well as technology, commercial innovation is also important.
In the past, service companies have typically stayed on one side of
the fence, and operators on the other. Today, we are increasingly
seeing these parties align to an agreed outcome. Consider one
scenario, for example, where an operator’s upfront costs are funded
by using existing equipment to design, plan, and execute a well
stimulation program, with payback based on the volume of incre-
mental production achieved. Or take that a step further still, with
a scenario in which the service company agrees to enhance an
operator’s production by, say, 10,000 b/d over a certain period.
Those would be smart dollars.
‘Pain-gain’ commercial models like this mark a strategic change
in the interaction between oil company and supplier. Are you a
service supplier, or a service partner? If you are a service partner,
you put skin in the game and work in a highly incentivized manner.
The appetite for outcome- or solution-oriented deals is there but
it is dependent on open dialogue and continued momentum.
The icing on the cake is that this approach does not stop at
production enhancement. Well intervention work adds to the
service sector’s understanding of each operator’s wells, which helps
de-risk the final task eventually facing them – well plug and aban-
donment (P&A). This is estimated at nearly half of the cost of the
entire decommissioning scope, so it is not an insignificant
consideration.
Considering that, let us take things another step forward. What
if your supply chain partner could help you maintain your produc-
tion levels at an agreed rate, and use the knowledge gained during
well intervention activities to drive efficiencies in your P&A scope.
The extra cash generated from production enhancement could
then be set aside to pay for that P&A program. We think that could
be a compelling proposition.
Of course, there are barriers. There is always the race to be
second and the challenge to shift industry perception. And while
technology will help us unlock more reserves, it will only go so far.
Combine technology with the right skills across the full stream,
together with new business models, and we have an opportunity
to shift the needle with a truly disruptive offering that can bring
value to everyone involved. •
CARL ROEMMELE, INTEGRATED SERVICES SOLUTIONS LEADER
PAUL STEIN, PRODUCTION ENHANCEMENT SOLUTIONS LEADER
BAKER HUGHES, A GE COMPANY
WWW.OFFSHORE-MAG.COM | OFFSHORE   FEBRUARY 2019
2/4/19 10:55 AM
 ADVERTISERS’ INDEX 

The index of page numbers is provided as a service.

The publisher does not assume any liability for error or omission.

AFGlobal www.afglobalcorp.com/drilling 19

Avisight www.AviSight.com 7
SALES OFFICES
Balmoral Comtec www.balmoraloffshore.com 31
PENNWELL PETROLEUM GROUP
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Suite 400, Houston, TX 77027 Bayou Wasco Insulation LLC www.bayoucompanies.com C2
PHONE +1 713 621 9720 • FAX +1 713 963
6228
David Davis (Worldwide Sales Manager) GE Oil & Gas www.bhge.com/subsea-connect 5
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PHONE +1 713 963 6206
48 -
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10 Springfield Close, Cross,
Axbridge, Somerset,
United Kingdom BS26 2FE SNC-Lavalin/Houston Offshore Engineering www.snclavalin.com C4
PHONE +44 1934 733871
Graham Hoyle grahamh@pennwell.com
Wilhelm Layher GmbH & Co KG www.scaffoldingstories.com/industry01 9
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1902OFFC1-C5.indd 3 2/4/19 10:56 AM

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