Saipem, a leading company in the engineering, drilling and construction of major projects in the energy and infrastructure sectors, has been awarded a contract from Qatargas worth more than US$1bn related to the North Field Production Sustainability Pipelines Project located offshore and onshore the Qatar peninsula.
The contract (EPCL package) entails the engineering, procurement, construction, and installation (EPCI) of offshore export trunklines and related onshore tie-in works and is part of the development of the North Field production plateau, which also includes the EPCI of offshore facilities (“EPCO” package) previously awarded to Saipem in February.
The scope of work for this award (EPCL package) includes three export trunklines starting from their respective offshore platforms to the Qatargas North and South Plants in Ras Laffan Industrial City for a total length of almost 300 km, as well as associated onshore tie-in works and brownfield activities on existing onshore and offshore facilities. Pipelaying operations will be executed by the DE HE and Saipem Endeavour vessels.
Stefano Porcari, Saipem E&C Offshore Division COO, commented, “This additional contract awarded by our key client Qatargas strengthens our consolidated relationship and represents a further proof of the trust in Saipem’s ability to deliver challenging projects and is a sign of success of our positioning strategy in Qatar. We are very proud to increase our contribution to such a strategic development for the country.”
Double haul for Saipem
This agreement is an expansion of the US$1.7bn contract awarded by Qatargas to Saipem for the EPCI of various offshore facilities for the extraction and transportation of natural gas, including platforms supporting and connecting structures, subsea cables and anticorrosion internally cladded pipelines. The agreement also included the decommissioning of a pipeline and other significant modifications to existing offshore facilities.
Saipem will enhance the overall project execution, comprising both EPCO and EPCL scope of work, by combining relevant planned schedules and project management. Once completed the project aims at increasing the early gas field production capacity to 110mn tonnes per annum. Saipem will start activities immediately and project completion is expected by mid-2024.
Neptune Energy has announced the safe and successful installation of four Enhanced Horizontal Subsea Tree Systems (EHXT) for the Duva development project in the Norwegian sector of the North Sea.
The Duva development, on Production Licence 636, is an oil and gas subsea tie-back to the Gjøa semi-submersible facility, of which Neptune Energy is also the operator.
While conventional installation of EHXTs would be carried out with a drilling rig, Neptune Energy, together with its partners and contractors, conducted the installation using the vessel Far Samson, operated by Solstad Offshore.
Thor Løvoll, Director of Drilling & Wells in Norway, Neptune Energy, commented, “By introducing the latest available technology combined with quality planning and teamwork, we completed the installation safely, successfully and ahead of schedule. Deploying the subsea trees from a vessel saved about 20 days of rig time, reducing costs, time and emissions.”
The 20 days of reduced rig time is equivalent to approximately US$12mn savings for the license partners and by using a vessel instead of a rig, emissions were reduced by more than 60% during the installation activities.
It was the first time Neptune Energy has installed EHXTs in a standalone operation with a vessel. They were successfully deployed on the template wellheads over an 18-hour period, with the total installation and subsea system testing completed within eight days. The operation was carried out in close cooperation with TechnipFMC, Ross Offshore, Solstad Offshore, Oceaneering, Fugro, IKM and Tigmek.
The Duva project
Neptune Energy’s Head of Gjøa Subsea Development, Crawford Brown, added, “We are progressing with the Duva project at pace and have reached an important milestone. The efficient installation of the subsea trees allows the project more schedule flexibility as we enter the drilling and completion campaign for the Duva production wells.”
“Duva is an important part of Neptune’s geographically-diverse, gas weighted portfolio of developments, and will both increase production and extend the operational life of our operated Gjøa platform.”
The Duva oil and gas field was Neptune’s first discovery in the Norwegian North Sea, a strategically important area supporting the company’s growth. It is located 14km northeast of the Neptune-operated Gjøa field, at a water depth of 360 metres. Gross 2P reserves are 88 mmboe (gas 76%).
The drilling rig Deepsea Yantai, operated by Odfjell Drilling, will drill and complete the remaining sections of the Duva well programme during Q2/Q3 2021, and first production from Duva is expected in the third quarter of 2021.
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.
A new partnership between Ashtead Technology, an integrated subsea technology and services specialist, and inspection and asset integrity company Ocean Atlantic Petroleum SA (OAP) has, after successfully executing its first marine services project in West Africa, received awards for further work in the region.
Leveraging their joint capabilities, Ashtead Technology has completed a multi-asset, class-approved mooring inspection campaign for Total E&P Angola in the Girassol and Dalia fields, and has been awarded further work in the Pazflor and CLOV fields.
The underwater inspection scope, which will avoid the need for drydocking, combines Ashtead Technology’s visual inspection, chain cleaning, measurement and 3D modelling technologies, with OAP’s team of experienced offshore technical personnel. OAP’s operations base in the country’s capital city of Luanda will be used to store and maintain the equipment.
“Coronavirus-related travel restrictions have added an extra logistical challenge,” commented David Mair, Business Development Director of Ashtead Technology. “By teaming up with OAP we have solved the problem and can continue to deliver a high quality, reliable service on schedule and within budget,” Mair added.
“This aligns with our overarching strategic focus for West Africa, which centres on providing a broader asset integrity service to clients and supporting local content objectives,” Mair added.
A formidable partnership for the future
Headquartered in Aberdeen, the UK, Ashtead Technology has nine facilities in energy hubs around the world. It has one of the largest equipment fleets in the subsea supply chain coupled with the R&D capabilities to develop bespoke solutions.
Established in 2014, OAP provides a variety of technical services to the Angolan energy sector, including subsea inspection and asset integrity. OAP’s knowledge of the Angola market and in-country technical expertise makes them the ideal partner to support the partnership’s growth ambitions in Angola.
Benoit Peyrichout, Managing Director of OAP SA, said, “Our partnership with Ashtead Technology has created the perfect marriage and a very compelling business proposition for clients in Angola.”
"With our local facilities and strong technical expertise forged with Ashtead’s engineering capabilities and fleet of technologies, we are ideally placed to win further awards and expand both businesses in the future.”
Winning the campaign for Total E&P Angola straight off the bat underlines the strength of the combined offering to operators in the region and indicates there could be much more to come from this partnership in the future.
Wintershall Noordzee has contracted Swift Drilling BV to carry out a plug and abandonment (P&A) campaign in the North Sea using the Swift 10 light jackup rig.
The Swift 10 is a fully Dutch owned and operated rig, which together with Wintershall Noordzee, will focus on the safe, efficient, and economic P&A of offshore wells on the Continental Shelf of the Netherlands and Germany. Before the three to four year campaign begins in the summer, in the coming period the rig will be revitalised and restarted after its original five year LTI free campaign for Shell/Nam.
The Wintershall Noordzee and Swift team will use the highly automated Swift 10 and focus on continuous improvement to effectively P&A wells. Both parties see the cooperation as a start of a new era, whereby old wells are plugged and abandoned according to the latest standards and protecting the environment of the North Sea.
“We’re extremely happy to revive the Swift 10 for Wintershall Noordzee. Together we share the ambition to create a long-term cooperation to P&A wells safe, efficient and economical as one team. The cooperation with Wintershall Noordzee aiming at the realisation of our shared ambition so far has been enjoyable and the right basis for successful P&A campaign,” said Erwin Lammertink, CEO of Van Es Holding, which Swift Drilling is part of.
The Swift 10 is a 300ft Gusto MSC SEA-2750 fully automated drilling rig, with a POB of 50 originally delivered in 2011. Its light jack up drilling concept matches the shallow water conditions of the Southern North Sea and due to its X/Y cantilever design, it is capable of serving the majority of the production platforms in the region with drilling wells, work overs and well abandonments. It is currently located in Rotterdam where it is getting ready for her P&A campaign.
Expro Group (Expro), an international oilfield service company, has signed a three-year agreement with global vessel provider FTAI Ocean LLC (FTAI Ocean), a subsidiary of Fortress Transportation and Infrastructure Investors LLC, for the supply of the DP3 M/V Pride well intervention vessel to provide full light well intervention (LWI) services to the subsea oil and gas sector.
FTAI Ocean is a leading marine services provider to the international offshore energy industries. Its expertise includes well intervention, subsea, umbilicals, risers and flowlines (SURF), offshore construction, inspection, repair and maintenance (IRM), remotely operated vehicles (ROVs) and survey and positioning services.
Expro, a premier well flow optimisation service provider, already maintains a leading position in the subsea landing string and well intervention markets, enhanced by its Riserless Well Intervention (RWI) and Intervention Riser System (IRS) equipment supply.
The new exclusive alliance, creates a full service offering for the riserless and riser-based well intervention and P&A markets, providing all marine, ROV, well intervention, wireline, e-line, coilhose, subsea well access, hydraulic intervention, well planning, execution and offshore well management by a single supplier using one contracting entity. The agreement will allow both companies to expand their capabilities and resources to deliver a fully integrated intervention package to the industry.
Expanding capability through collaboration
Graham Cheyne, Vice President of Well Access and Subsea at Expro, commented, “This partnership is a significant step forward for both companies. It will strengthen our position in the subsea well access and P&A markets combining our efforts to provide a bespoke project-specific complete subsea intervention package to meet our customers’ exact requirements.”
“The new alliance and technology offering were paramount in Expro’s recent five-year contract award for the supply of light well intervention services for the Chevron-operated Gorgon facility, offshore Australia.”
“We have introduced the first fully integrated alliance package to the market. This not only enhances our LWI offering but represents Expro’s strong and continued commitment to safety through reduced risks, lower operational costs, and greater efficiencies for our customers,” Cheyne added.
Jon Attenburrow, Managing Director of FTAI Ocean, said, "We are very pleased to be working with Expro, a world leader in well flow technology, with a global footprint and strong track record in subsea well intervention. We look forward to collaborating with Expro to offer clients the highest calibre of subsea intervention services on a global basis.”
Supported by innovation
Both services and technologies will be deployed under the alliance, and will be supported by the introduction of FTAI Ocean’s innovative well intervention smart tower system, which will expand the alliance’s LWI vessel services with the provision of both riser and riserless equipment and services.
Expro and FTAI Ocean will offer the new integrated smart tower system, which has been designed, tested, and classed to DNV standards. The system, operational in water depths up to 1,500m in riser mode and 2,500m in riser-less mode, will be installed on the flagship DP3 M/V Pride Offshore Construction Vessel.
China National Offshore Oil Corporation Limited (CNOOC) have announced that the Caofeidian 6-4 oilfield, located in the Midwest of Bohai, has commenced production.
CNOOC holds a 100% interest in the oilfield, which has an average water depth of about 20m, and acts as the operator. In addition to fully utilising the existing processing facilities of Nanpu 35-2 oilfield and Qinhuangdao 32-6 oilfield, a new central platform has been built on the field as part of the project. A total of 42 development wells are planned, including 30 production wells, 12 water injection wells and water source wells. The project is expected to reach its peak production of approximately 15,000 barrels of crude oil per day in 2023.
Guided by the vision of green development, Caofeidian 6-4 oilfield will actively promote green and low-carbon production. After putting into production, the project will achieve zero discharge of production and living sewage into the sea. With the introduction of onshore power engineering, it is estimated that about 16,000 tons of standard coal will be saved, and about 40,000 tons of carbon dioxide will be reduced annually.
Sustaining a strong performance
The news surrounding the Caofeidian 6-4 oilfield closely follows the release of CNOOC’s 2021 business plan and strategic strategy which provided a brief overview of its performance last year. Against the challenges caused by Covid-19, such as the huge impact from low oil price, the company invested a great deal into further reducing costs and enhancing efficiency, promoting reform and innovation, ensuring safety in production and above all growing its oil and gas reserves and production. As a result of this, CNOOC recorded a net production record high of approximately 528mnboe in 2020.
Following this, the company is seeking to strengthen this resource base even further and has planned to drill 217 exploration wells and collect approximately 17,000 sq km of 3D seismic data. Additionally, CNOOC expects 19 new projects to come on stream, such as the Lingshui 17-2 gas fields development, the Lufeng oilfields regional development, the Buzzard oilfield phase II in the UK and Mero I oilfield in Brazil. CNOOC is targeting a net production of 545-555mnboe in 2021 and estimates it will achieve 590-600mnboe and 640-650mnboe in 2022 and 2023 respectively as a result of these ventures.
Xu Keqiang, CEO of CNOOC, said, “In 2021, under the theme of high-quality development, the Company will be committed to steadily increasing its oil and gas reserves and production, focusing on investment efficiency, maintaining its cost competitiveness, while actively pursuing the concept of green and low-carbon development, to create excellent returns for our shareholders.”
With the Caofeidian 6-4 oilfield commencing production, and potentially reaching a peak production of 15,000 barrels of crude oil per day by 2023, it appears CNOOC have made a strong start in their attempts to meet their forthcoming targets over the next few years.
Helix Energy Solutions Group (Helix) has announced that it has entered into a new agreement for response resources with HWCG LLC which was closely followed by Helix Robotics Solutions (HRS), a division of Helix, awarding Maritime Developments Ltd (MDL) a two-year frame agreement for project engineering services and equipment supply.
HWCG LLC
HWCG’s members, under the new agreement with Helix, will be given the opportunity to identify the Helix Fast Response System as a response resource in permit applications to U.S. federal and state agencies, and to deploy the Helix Fast Response System to respond to a well control incident in the U.S. Gulf of Mexico.
The Helix Fast Response System consists of the Helix Producer I floating production unit, Q4000 or Q5000 vessels, subsea intervention systems, crude transfer systems and other well control equipment.
Under the terms of the agreement, HWCG will pay Helix an annual retention fee and HWCG’s members will receive a credit against this fee for every day that a member utilises the Q4000 or Q5000.
Owen Kratz, CEO of Helix, commented, “We are pleased to continue our long-standing relationship with HWCG, and are proud to stand on call as a first responder in the Gulf of Mexico. Helix’s industry expertise in offshore well intervention and well control is second to none, and we feel this agreement demonstrates the parties’ commitment to the continued safe planning, operation and execution of offshore oil and gas production. We embrace our role as a provider of sustainable solutions, are proud to offer the Helix Fast Response System to help mitigate and remediate the environmental risks associated with offshore drilling and production operations.”
Adding to this, HWCG’s Managing Director, Craig T. Castille said, “HWCG and its membership are pleased to have Helix continue as a business partner and core contractor for its source control and containment response in the U.S. Gulf of Mexico.”
The agreement replaces the parties’ prior agreement and is effective April 1, 2021 for an initial two-year term.
Maritime Developments Limited
Closely following this, Helix Robotics Solutions, announced that it has awarded MDL a two-year frame agreement covering the provision of MDL Project Management and Engineering services, as well as personnel and equipment, to optimise HRS’ offshore campaigns.
HRS will now be able to draw on MDL’s in-house expertise for storyboard development, visualisations and procedures/task plans for offshore execution, deck layout optimisation, sea-fastening design and verification, drawings and calculation packages and crane lift requirement assessments.
For the project execution phase, HRS will also have access to MDL’s expert personnel and market-leading rental fleet and look to optimise the costs and timescales in mob/demob stages with MDL’s portable technology.
MDL will also provide field engineering support to act as the interface between vessel management team, end client and pipelay equipment spread during mobilisation, offshore execution and demobilisation.
For bespoke projects, MDL has offered its 21-year track record in mechanical handling design and manufacture, to deliver newbuild solutions, as well as equipment maintenance, repairs and upgrades.
Following a strong performance in February in which the company received four survey contracts, Shearwater GeoServices (Shearwater) have made an impressive start to March with the award of three contracts to conduct surveys in Australia, West Africa and the North Sea.
Australia:
Employing the Geo Coral vessel using a multi-sensory streamer system with a variable streamer spacing configuration, Shearwater have been commissioned to conduct a 3D multi-sensory marine seismic survey in the Otway Basin offshore Australia. The survey, which will take two months to complete, will cover an approximate 2700 sq km and is estimated to commence in Q3 2021.
Irene Waage Basili, CEO of Shearwater, commented, “We see a solid, consistent level of activity in Australia where we have multiple projects booked in 2021. We observe increasing regional demand for our vessels equipped with high-end technology, which is reflected in backlog and utilisation.”
West Africa:
Following the Australian contact, Shearwater have also been employed by Total E&P Angola (Total) to conduct a 4D monitor marine seismic acquisition survey of the GJDR Development area of Block 17. The survey comprises a two-month long project and is expected to commence in Q1 2021. To complete the contract, one of Shearwater’s industry leading multi-sensory equipped vessels will be used in conjunction with source vessels from Shearwater’s fleet.
“As the established global market leader in 4D monitor surveys, Shearwater is pleased to announce the award of this advanced multi-sensory project by Total in Angola. We have seen a notable increase in interest for 4D technology for our clients’ planned projects in 2021, which is demonstrated by the award of this project in West Africa.” said Basili.
North Sea:
Capping off the trio, Shearwater will also conduct a five-month long survey of the Northern Viking Graben area offshore Norway. The 3D multi-sensor survey was awarded by CGG and is expected to commence in Q1 2021.
“This award confirms the strong relationship we have with our strategic partner CGG and we look forward to executing this survey with the highest level of quality and HSE commitment as part of our client’s multi-year project," commented Basili. “With the addition of this award to our backlog, we are now experiencing increasing demand for Shearwater’s multi-sensory vessels for the upcoming 2021 season.”
Downhole technology developer and manufacturer Omega Well Intervention and well intervention company Wellpro Group, have announced a strategic alliance to deliver downhole tools to the Middle East and North African (MENA) market.
As per the agreement, Wellpro Group will manage the deployment of Omega Well Intervention products through their extensive network across the region, a move which will go alongside significant investment in all MENA facilities. Omega Well Intervention will provide access to an engineering design team as well as manufacturing capabilities and test facilities for product development.
Jim Thomson, CEO of Wellpro Group commented, “This agreement, which covers the Middle East and North Africa, gives us the opportunity to deliver a more complete well intervention package to the region. In these challenging times, our clients are increasingly looking for ways to reduce costs and make operational efficiencies. Through this alliance we are now able to offer them a wider range of products from a single source.”
Brian Garden, Managing Director of Omega Well Intervention, added, “As part of Omega growth strategy, collaboration with Wellpro Group within the Middle East enhances the ability of both companies to offer a more comprehensive product range within the well intervention business space. This collaboration will ensure that we deliver quality products alongside first-class service.”
This agreement comes as part of Wellpro Group’s clear intentions to strengthen their presence in the Middle East region, quickly following the company announcement (in December 2020) that it was entering the Saudi Arabian oil and gas market with the energy services company i-Energy involving complete operational asset and field support.
For Omega Well Intervention it is another step in a successful spell which has recently seen the award of two accreditations by the American Petroleum Institute for its retrievable bridge plugs and quality management system adding to the twenty five patents across their range of downhole tools that the company already boasts.
Oceaneering International (Oceaneering) has announced that its Subsea Robotics (SSR) and Offshore Projects Group (OPG) have been awarded an integrated rig services contract for covering the Khaleesi/Mormont and Samurai fields in the Gulf of Mexico.
The work scope includes the provision of remotely operated vehicles (ROVs) with collocated ROV tooling and technicians, remote positioning and metrology survey resources, and installation and workover control system (IWOCS) equipment and technicians. Work is scheduled to begin in early 2021 and carry into 2022.
Earl Childress, Senior Vice President and Chief Commercial Officer of Oceaneering, commented, “The operator’s decision to contract our robotics and IWOCS services is a positive and anticipated response to our realigned segments, which allows us to deliver the integrated processes and products that enable consistent and efficient work scopes.”
Expanding operations in Khaleesi/Mormont and Samurai
This announcement closely follows a connector supply contract, awarded by TechnipFMC at the end of 2020, to provide 2-inch M5 connectors and chemical throttle valves (CTV) for the tieback project in the same fields.
The M5 connector provides an easy-to-install, fly-to-place connection solution that enables injection of gas or chemicals into subsea infrastructure and serves as an access point for future subsea field intervention activities such as gas lift, chemical injection, well stimulation, hydrate remediation, flooding and venting operations, acid injection and scale squeeze.
Oceaneering rotator CTVs regulate the flow of chemicals (such as scale, wax, and corrosion inhibitors) delivered to subsea production systems. Their functions are diverse, from flow control to metering and highly accurate dosing. CTVs effectively eliminate the need for topside injection and dedicated umbilical lines.
Carnarvon Petroleum Limited (Carnarvon) has announced that the Noble Tom Prosser jackup drilling rig has been contracted to drill the Pavo-1 and Apus-1 exploration wells in the Dorado Field in the Bedout basin offshore western Australia.
The drilling programme is expected to commence in late 2021 with the Pavo-1 well and will be immediately followed by Apus-1. Both prospects hold the potential to materially increase the aggregate development resource for the Dorado field if successful with the Pavo-1 well targeting 101mnboe and Apus-1 targeting 306mnboe.
Both of the exploration targets also have the potential to be tied back to existing infrastructure on the Dorado field which could provide significantly enhance economic outcomes, minimise additional capital investment requirements and shorten time periods to first production from the tie back fields.
With the drilling rig contracted, the operator will now proceed to secure the remaining equipment, services and approvals required to commence drilling operations
Managing Director and CEO of Carnarvon, Adrian Cook, said, “Given the potential resource size and development aggregation benefits, these two drilling targets provide very attractive and meaningful opportunities for Carnarvon. This news in locking in this rig is another clear point of progression in the advancement of the world class Bedout Basin. We are looking forward to an exciting year ahead with multiple drilling operations progressing to plan as well as the advancement of our Dorado development pre-FEED and FEED activities.”
Repeating history?
The Noble Tom Prosser jack-up drilling rig was previously used by Carnarvon and its operating partner in 2019 on the Dorado-2 and Dorado-3 appraisal wells and the operators will no doubt be hoping for a repeat of fortunes; Dorado-2 operations encountered 85m of net reservoir, a discovery far more significant than original estimations, while Dorado-3 initially discovered confirmed hydrocarbons in three reservoirs and returned strong results in the subsequent flow tests with the Caley reservoir achieving a maximum measured rate of approximately 11,100bbl per day and 21mn cu ft of associated gas per day.
Page 72 of 83
