Baker Hughes has been awarded a subsea oilfield equipment contract from Petrobras as part of the Marlim and Voador field revitalisation plan in the Campos Basin, offshore Brazil.
The contract includes several key technologies from Baker Hughes’ Subsea Connect portfolio and will provide Petrobras with a connected suite of solutions to help drive efficiencies, reduce costs and improve execution speed.
Baker Hughes will supply up to five subsea production and injection manifold systems, which benefit from a lightweight and compact design for installation from smaller vessels and include integrated hydraulic connection systems and retrievable choke modules to realise life of field cost savings. The manifold systems will also include Baker Hughes’ field proven vertical mechanical clamp connection system which increases installation efficiencies.
In addition to the manifold systems, Baker Hughes will provide 32 modular, structured, subsea control modules (called Modpods) which are powered by SemStar5 technology, manufactured in the company’s Nailsea facility in Bristol, UK. The modules have extensive field deployment history with a mean time between failures of more than 150 years.
Neil Saunders, Executive Vice President of Oilfield Equipment at Baker Hughes, commented, “This order is an important example of how Subsea Connect is bringing structured technology to improve execution certainty. We are able to deliver world-class subsea solutions with a breadth of expertise and skills to bring flexibility, scalability and versatility to complex projects. We are proud to partner with Petrobras on the revitalisation of Marlim and Voador and offer our latest subsea technologies for Brazil.”
The contract will include a global team of experts delivering the subsea production and injection manifold systems, subsea control modules, subsea connection systems and field installation support. The manifold systems will be fabricated, tested and assembled in Baker Hughes’ Centre of Excellence facility in Jandira, Brazil.
Adyr Tourinho, Vice President of Brazil and Oilfield Equipment for Latin America at Baker Hughes, said, “This contract is a culmination of our multi-year engagement with Petrobras and builds on our history supplying subsea production systems to deepwater projects in Brazil. Our lightweight, compact technology is engineered to combat the most demanding conditions found in today’s deepwater environments.”
A bright future ahead
Baker Hughes’ recent Q1 2021 results show that the company had faced a challenging year, suffering year on year declines in areas such as orders and revenue. However this is a squeeze being felt unanimously across the energy industry and Lorenzo Simonelli, Chairman and CEO of Baker Hughes, noted that he envisioned a bright future for the company, which will no doubt be aided by the recent agreements with Petrobras and other major players such as Saudi Aramco.
Simonelli commented, “We are pleased with our first quarter results as we generated strong free cash flow, continued to drive forward our cost-out efforts, and took further meaningful steps in the execution of our strategy. During the quarter, TPS delivered solid orders and operating income while OFS continued to execute cost-out programmes to help drive another strong quarter of margin performance. We also advanced our position in the energy transition, investing in strategic areas for growth and entering important partnerships to advance new energy frontiers including hydrogen and carbon capture, utilisation and storage.”
“As we look ahead to the rest of 2021, we remain cautiously optimistic that the global economy and oil demand will recover from the impact of the global pandemic. We expect spending and activity levels to gain momentum through the year as the macro environment improves, likely setting up the industry for stronger growth in 2022.”
Karoon Energy Ltd has contracted the Maersk Developer rig, operated by Maersk Drilling, for the 2022 Baúna workover campaign with the option to retain the rig for the potential development of the Patola field, located adjacent to Baúna within the BMS-40 Production Licence, and drilling of a control well on the nearby Neon light oil discovery.
The rig, currently located in the Caribbean, will mobilise to Baúna following the completion of its present drilling programme and is expected to arrive in Brazil in the first half of 2022. The value of the contract is approximately US$34mn, including rig modifications and a mobilisation fee.
Baúna
For the Baúna well workover campaign, the rig will target an increase in production of 5-10kbopd by replacing the downhole pumps in two wells, installing a gas lift in one well and re-opening an oil zone in one final well.
Patola
The development of the Patola Field, which is located adjacent to the Baúna Field, involves the drilling and completion of two vertical wells which would be tied back to the Baúna floating production storage and offloading (FPSO) vessel, the Cidade de Itajaí. This development has the potential to produce more than 10kbopd and add incremental reserves to the Baúna asset. A final investment decision on Patola is expected to be taken in Q2 2021.
Neon
Karoon also holds the option to extend its contract with Maersk Drilling to drill a control well on the Neon light oil discovery, located approximately 60km North-East of Baúna. Subsurface and engineering studies are currently underway to assess whether this is a viable option.
Maersk Drilling in demand
Karoon Energy’s Chief Executive Officer and Managing Director, Julian Fowles, commented, “We are delighted to have signed this contract with Maersk Drilling, a global leader in offshore drilling, with one of the youngest and most advanced rig fleets in the industry. The contract marks another significant milestone in the evolution of Karoon into a substantial production and development company with material near term growth potential.”
“The arrival of the Maersk Developer rig will enable Karoon to implement a workover programme at Baúna, which is expected to add materially to our production, and is an important step in getting to a final investment decision (FID) for the Patola Development. Karoon also retains flexibility under the contracts with Maersk Drilling to drill the Neon control well.”
“The Karoon team looks forward to working closely with Maersk Drilling to deliver the Baúna workover campaign safely and efficiently. The programme is expected to commence in the first half of 2022 and, subject to FID, activities on the potential Patola development would follow immediately after the workover campaign is complete,” concluded Fowles.
It appears that the services of Maersk Drilling are in high demand with the company receiving a number of high-profile contracts including an exploration contract for Aker BP offshore Norway, a similar contract offshore Gabon awarded by PC Gabon Upstream, and an agreement for a long term drilling campaign offshore Ghana with Tullow Oil.
Ashtead Technology, an integrated subsea technology and services provider, has penned a deal with Zetechtics, a leader in subsea control systems for ROV tooling intervention, to offer customers a range of new ROV tooling technologies.
The deal gives both organisations the scope to add further specialist equipment based on demand and will allow Ashtead Technology’s nine customer service hubs to offer an array of torque tools, control systems and associated peripherals from the subsea control systems specialist.
Ashtead Technology noted this was part of their strategy to continually develop and expand their capability to meet the diverse needs of their customers around the world, who operate in all areas of the global energy industry.
David Mair, Business Development Director for Ashtead Technology commented, “These new technologies offer improved performance, reliability and efficiency, as well as a greater level of user-friendliness. Zetechtics has 27 years of experience for us to draw on and this collaboration is set to add undeniable value to our customer’s operations.”
Alan Duncan, Commercial Director of Zetechtics, added, “Customers prefer to use modern, easily-supported equipment, with the type of technical features they would have access to if buying new. We are excited to collaborate with Ashtead Technology and by introducing a wide range of new equipment to the market in this way will enable their customers to unlock the potential of our market-leading solutions.”
Equinor, together with license partners Repsol Sinopec Brasil and Petrobras, have approved the development concept for BM-C-33, a gas/condensate field located in the Campos Basin pre-salt in Brazil.
“BM-C-33 is a key project in our portfolio and concept select is an important milestone in our effort to mature the project. It is important to further optimise and improve the project business case to make it more robust for the future market,” said Geir Tungesvik, Senior Vice President for Projects at Equinor.
The well streams will be sent to a floating production, storage and offloading unit (FPSO) located at the field, which will process both gas and oil/condensate to sales specifications and then exported. Crude will be offloaded by shuttle tankers and shipped to the international market after ship-to-ship transfer. A new-build hull has been selected to accommodate for 30 years lifetime of the field.
The gas export solution is based on an integrated offshore gas pipeline from the FPSO to a new dedicated onshore gas receiving facility inside the Petrobras TECAB site at Cabiúnas, before connecting to the domestic gas transmission network.
"BM-C-33 holds substantial volumes of gas. A completion of the ongoing liberalisation of the natural gas market in Brazil in line with the current plan, is key for the further development of the project. BM-C-33 is an asset that can generate value for the society, both through the creation of direct and indirect jobs, ripple effects, and through a gas supply that can induce industrial growth, as has happened in other countries,” commented Veronica Coelho, Equinor’s Country Manager in Brazil.
Gas export capacity is planned for 16mn cu/m per day with average exports expected to be 14mn cu/m per day, which represents a significant volume based on current Brazilian gas demand. Daily oil processing capacity is of 20,000 cu/m.
The concept select is a conclusion of a technical and commercial assessment of various developing concepts and landfalls. The chosen concept provides the most robust solution to develop the BM- C-33 project and gas value chain.
Details on project timeline towards next decision gates and start of production are still to be concluded.
SBM Offshore has announced that it has signed a letter of intent (LOI) together with Petróleo Brasileiro S.A. (Petrobras) for a 26 year and three month lease (as of the final acceptance of the unit in 2024) and operate contract for the floating production storage and offloading (FPSO) unit Almirante Tamandaré, to be deployed at the Búzios field in the Santos Basin pre-salt area approximately 180km offshore Rio de Janeiro in Brazil.
Under the contract, SBM Offshore will be responsible for the engineering, procurement, construction, installation and operation of the FPSO. SBM Offshore will design and construct the vessel using its Fast4Ward programme as it incorporates the company’s new build, multi-purpose floater (MPF) hull combined with several standardised topsides modules.
The Almirante Tamandaré
The FPSO vessel will be the largest oil producing unit operating offshore Brazil and one of the largest in the world, with a processing capacity of 225,000bbl and 12mn cu m of gas per day. Furthermore, the FPSO will have a water injection capacity of 250,000bbl per day and a minimum storage capacity of 1.4mnbbl. For the project, it is estimated that 15 wells will be connected to the FPSO including 6 oil producers, 6 water and gas injectors, 1 gas injector and 2 convertible wells through a subsea infrastructure composed of rigid production and injection pipelines and flexible service pipelines.
Bruno Chabas, Chief Executive Officer of SBM Offshore, commented, “SBM Offshore is proud to announce that Petrobras has awarded the Company the LOI for the 6th FPSO development in the world class Búzios field in Brazil. This award for one of the largest production units in the world demonstrates the trust placed in our ability to reliably deliver large-scale FPSOs and the agreement again confirms the significant value we bring to our clients with our industry leading Fast4Ward programme. SBM Offshore teams look forward to starting the execution phase in order to continue to deliver value to one of our key clients Petrobras.”
Petrobras’ strategy refocused
This agreement has finally arrived after a number of tentative reports last year and follows Petrobras’ new strategy of portfolio optimisation to concentrate its resources on world-class assets in deep and ultra-deep water. To emphasise this policy, the company has also announced the sale of its stake in nine onshore exploration and production fields, called the Miranga Cluster in the state of Bahia, to SPE Miranga S.A., for US$220.1mn. The sale and the FPSO contract is a clear signal of intent from Petrobras and it would be unsurprising if similar activities were announced in the near future as the company seeks to establish itself more rigidly as an offshore oil and gas producer.
Wärtsilä has revealed that in December 2020 it signed five year Optimised Maintenance agreement for two offshore well intervention vessels owned by Siem Offshore. Under the agreement Wärtsilä will provide real-time monitoring and support, using the latest digital technology, to reduce the fuel consumption and emissions of two well intervention vessels (the Siem Helix 1 and the Siem Helix 2) operating in Brazil’s offshore oil fields. The agreement also covers the selective catalytic reduction (SCR) emissions-abatement systems installed with the engines.
Wärtsilä will supply its Expert Insight predictive maintenance solution for use on the two vessels, an innovative service that leverage artificial intelligence (AI) and advanced diagnostics to monitor equipment and systems in real time, spot anomalies, foresee potential problems and enable rapid reaction. Also included is Wärtsilä’s Date Driven Maintenance concept which will enable the ship’s crew to conduct condition inspections using borescope optical instruments. These images can then be sent to Wärtsilä’s technical experts for evaluation, and in most cases will lengthen the time required between engine overhauls.
Finally, Wärtsilä will provide the vessels with the Lloyd class-approved connectivity solution with enhanced cyber security - an enabler for onshore digital tools providing cloud based services such as remote monitoring, remote optimisation and support.
Henrik Wilhelms, Director of Agreement Sales at Wärtsilä Marine Power, commented, “Lifecycle support is a key element of our strategy, and our advanced digital and data-based maintenance solutions are central to enabling optimal operational performance. The benefit of being able to efficiently monitor the equipment and support customers remotely is enhanced even more today, since due to Corona-related travel restrictions, in-person visits by service engineers can be difficult to arrange. Since our engineers need to travel less, their carbon footprint is reduced, while at the same time we can optimise the performance of the asset, so it is really a double win.”
Full steam ahead in 2021
Presently, Wärtsilä’s is enjoying a spell in the sun as services are in high demand. So far, in February alone, the company has also revealed agreements to provide Western Pacific Marine Ltd with the advanced hybrid solution for the new Ro-Ro ferry; to supply Norwegian based Solvang with digital Operational Performance Improvement & Monitoring (OPERIM) solution to support the operational efficiency of its fleet; to equip new under construction Isle of Man ferry with a range of comprehensive solutions; and sealed a strategic partnership with SAACKE, to strengthen the companies’ ability to offer a comprehensive range of leading technology solutions to shipyards and ship owners. While in their 2020 annual report Wärtsilä may have reported a contraction in financial performance, it appears they are full steam ahead to reconcile this lost ground in 2021.
A pioneering design for a Floating Normally Unattended Installation (NUI), that has the potential to unlock smaller and deepwater oil and gas reservoirs, is one step closer to commercialisation following an announcement of a collaboration agreement between the engineering consultancy behind the design, Buoyant Production Technologies (BPT), and Subsea 7, a subsea engineering, construction and services company.
The BPT Floating NUI
BPT’s patented proprietary design is a compact single column offshore facility, designed and equipped specifically for unmanned operations. The unit’s low OPEX and low CAPEX deliver optimised lifecycle costs to offshore developments.
With increasing focus on the environmental impact of oil and gas projects, as well as uncertainty surrounding commodity prices, Floating NUIs can offer a robust development solution for a wide range of future projects. BPT has developed Floating NUI into several configurations:
-Utility buoys powered using renewable sources, that can replace subsea umbilicals for well control and management
-Normally unattended production units
-Offshore substation units for use in offshore wind farms and for power import/export to oil and gas infrastructure
Central to the patented design, which is scalable for different field requirements, are several features:
-Slender “hull” structure and integrated (buoyant) “deck box”
-Open deck for topside process equipment and personnel access
-Deck box housing power generation and utilities
-Minimal motions, enabling deployment in harsh environments
-Minimal offshore installation cost
The Floating NUI series includes:
-Production Buoy: A standalone production facility for smaller deep-water developments
-Power & Control Buoy: Providing well-site services to enable subsea developments such as long-range /complex gas and oil tiebacks
-Floating substation: Supporting offshore substations for use on offshore wind developments and power import/export applications
The NUI conecept was developed and tested with multiple industry partners including the Oil and Gas Technology Centre, Premier Oil, Total E&P UK, Lloyds Register, Siemens, Wärtsilä, Ampelmann and BW Offshore.
The Subsea 7 and BPT collaboration agreement
BPT will bring their proprietary Floating NUI designs, configured for a range of offshore developments while Subsea 7 will provide field development and delivery expertise, supporting the integration of Floating NUIs into offshore energy developments and the engineering, construction, procurement, and installation phases of the project.
Duncan Peace, Managing Director at Buoyant Production Technologies, said, “By entering into this collaboration agreement with Subsea 7, we have developed a robust delivery model for Floating NUI projects, which we believe will enable us to successfully deliver projects to our global customer base.”
Thomas Sunde, Vice President Strategy at Subsea 7 added: “We believe BPT’s Floating NUI technology is well placed to help us support clients to improve lifecycle development economics of their offshore energy projects. By working together, we believe both parties will be able to better support our clients’ ambitions.”
For BPT, a wholly owned subsidiary that was formed in 2018, this announcement is a step along their journey to create novel designs to reduce HSSE risks and minimise lifecycle costs with a clear route to the market for the Floating NUI now established.
Following on from the OWI Global Awards hosted at the end of 2020, Rob Potter, Strategy Director at Genoa Black, and Claire Kinloch, CEO of Genoa Black, caught up with some of the winners as they hosted the webinar entitled ‘Turning 2020 lessons and achievements into 2021 opportunities’.
2020 blockers to agility
Potter began the webinar by asking what the key blockers were to agility in 2020, and how the panellists had each worked around this in their respective company. David Carr, Senior VP of International Business at Helix Energy Solutions, noted that the biggest challenges his company faced primarily revolved around travel restrictions and the migration to online working . However, Carr was quick to note the positives, outlining that actually the biggest effect of these was the acceleration of trends that had already been building within the industry. At Helix, Carr had noticed an increased efficiency and agility from working from home (suggesting they had actually signed more contracts than previous years) and that the switch to online had levelled the playing field when it came to operator to service company negotiations as the tradition of travelling to their office had been shattered. Carr said, “No one is doubting that it was a terrible year but there was an acceleration of a lot of the changes we were expecting to see and needing to see that perhaps would not have happened otherwise”.
Echoing Carr’s sentiments on the levelled playing field, Daniele Petrone, Life of Field Solutions Manager at OneSubsea, also pointed to his company’s budgets and plans, which were suddenly thrown awry last March. The manager suggested that suddenly there was a dramatic need to be extremely flexible, adaptable and patient to work around the fluctuating circumstances. As well as thanking his customers for their continued understanding throughout the pandemic, he highlighted the heroic effort of his staff, some of whom had remained mobilised offshore for more than a year without coming home. For Petrone, 2020 had revealed the importance of collaboration, both within the company and at an industrial level, as key to success.
Positive initiatives from 2020
Kinloch introduced the next question, enquiring what the best initiatives put into place in 2020 were and how these can be taken forward and replicated. For Andy Myers, Subsea Director of Oil Spill Response Limited, the most important steps taken in 2020 for his company were all around digitalisation. For a response company, it was paramount to demonstrate that they had the capabilities to respond as quickly as possible, even in the disrupted circumstances, and this prompted a real look into the digital tools that could offer optimal performance, prioritising fast communication above all. Through developments such as a dashboard on their website and investments into user interfaces the company sought to enhance interactions with their clients and ensure people were fully aware how they could respond to any incident. Myers commented, “A lot of this stuff was a reaction but will continue as there is a lot of positives to be taken from them. A lot of the tools will be maintained because they are cost-effective”
Carr admitted that the majority of the initiatives that came to fruition last year for his company, such as the decision to move some business to offshore renewables, were actually started prior to the pandemic, but they paid dividends and meant that much of their business was still utilised. The VP did however pick out that COVID brought into sharp focus the need to stay on top of the safety of his crews, and that it prompted a drive to monitor not only the physical health (with a new biological mindset) but also the mental health of employees.
Benefits of collaboration
For the third and final question, Potter asked what benefits were found in the increased collaboration that each panellist had witnessed within their company. In his line of work, Myers stated that no single company can provide a full oil spill response on their own, it is therefore more efficient and makes fiscal sense to work in collaboration with others, and this was a lesson that nearly all of the offshore industry had taken on board in 2020. He claimed that the shared experience of switching to online working, and the ease of communication that this has opened up, has made people far more open to collaboration than perhaps they have been in the past.
Petrone added to this as he said, “Collaboration has been key to any projects actually happening - even the operation for which we won the award wouldn’t have been possible without collaboration within our company and with our partner Helix. Some jobs would just simply not fly from an economic standpoint. That has been the key”.
Concluding the session, Kinloch identified that collaboration, which will open up companies to new ideas and pull in more diverse teams; digitalisation, which has given many companies the ability to reach more markets and re-balanced some of the relationships within the industry; and diversification, which can be used as a tool to cover all bases and give businesses the resilience to survive; were the key lessons to embrace and take into 2021. She said, “There has been an immense amount of change over the last 12 months. The biggest question moving forward is around managing this change and understanding what this has done to our culture, not just at an industry level but also how we operate within our own business. It is something that we will all have to catch up on and ask ourselves how can we use the pandemic now to our advantage”.
Hear Christian Kruger, VP Account Manager of Welltec discuss how powered mechanical interventions can help solve P&A challenges
Offshore network spoke with ANP to better understand the impact of changing regulations on the Brazilian well intervention market, most specifically future integrity & P&A projects. Below you can find comments on how the integrity & P&A market is changing and how to strategize for this going forward.
Access an outline of Brazil’s current oil and gas industry, sharing ANP’s new focus for well intervention
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