Lifting spirits Sharing in decommissioning success - Air pressure - OGUK
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News | 5
Blueprint for the basin | 14
What the North Sea Transition Deal means for the UKCS
Member News | 16
Star power | 20
Shetland’s ORION project aims to establish the island as a new,
integrated green energy hub, supporting wind power, hydrogen
production and offshore electrification
ESA does it | 26
Understanding the new Energy Services Agreement, and its
importance for the UKCS workforce
An uncertain climate | 28
White & Case explores the growing rise in climate change-related
disputes, and the impact they have on corporate and legal risks
Peer factor | 34
North Sea helicopter operators have joined together to launch a
new peer assistance network, aimed at supporting pilots’ mental
health
Issue 50 | Spring 2021
Open-source alliance | 38
A new agreement will see Proserv and Intelligent Plant work
together to pioneer an open-data approach to controls systems
wireline | Spring 2021 | 3
Welcome to Issue 50
W
elcome to Wireline, the magazine for the UK offshore oil and gas industry, and welcome to our 50th
issue.
Launched in May 2007, Wireline was created to reflect the evolution of the UK Offshore Operators
Association as it became Oil & Gas UK. Looking back, much has changed since then. OGUK has grown from 60
members to more than 400, and roughly doubled its staff to take on new work in areas like decommissioning, energy
transition and data. On the other hand, some things appear refreshingly familiar. Wireline’s earliest headlines included
the growth of the All-Party Parliamentary Group (APPG) - encouragingly still going strong – and the publication of a
“long-awaited Energy White Paper”…
It is fitting then, that Wireline’s first half-century comes at a time of visible and vital change in the offshore industry. The
Government’s unveiling of the North Sea Transition Deal in late March not only helps set a clear route for the industry’s
role in supporting net zero, but ensures an exciting future for those who work in it. The deal would see joint investment
of £16 billion from government and companies, and will help support the creation of 40,000 new energy jobs over the
coming decades. You can read more about what the deal means for the industry inside this issue [p. 14].
Highlighting the scale and breadth of these opportunities are projects such as Shetland’s ORION (Opportunity
Renewables Integration Offshore Networks). Linking wind power, hydrogen production, and onshore infrastructure, it
would not only provide low-carbon electricity for offshore oil and gas assets, but also set out a blueprint for the Islands
as an integrated energy hub. Wireline learns more from project co-ordinator Gunther Newcombe [p. 20].
The impact of climate change is also transforming legal and corporate frameworks across the global economy. A new
report from law firm White & Case highlights the extent to legal and procedural developments have contributed to a
new environment in which climate change related disputes are more prevalent than ever – and how this is only set to
increase as time goes on [p. 28].
Alongside the offshore personnel who have continued work throughout the COVID-19 pandemic, so have the pilots
and helicopters who enable them to travel safely. Recognising the pressures placed on those in aviation, North Sea
helicopter operators have joined together to establish a peer assistance network. Its aim is to offer a peer-led, first
port of call for any pilot suffering from poor mental health, but its lessons could be replicated in many other industries
[p. 34].
Finally, Wireline explores a new alliance formed by Proserv and Intelligent Plant, aimed at promoting open data
standards for controls and analytics technologies. Proserv’s Stuart Harvey and Intelligent Plant’s Steve Aitken explain
why these open standards are beneficial, and why true digital innovation comes when organisations empower teams
from within [p. 38].
While the post-COVID business environment continues to be challenging, the North Sea Transition Deal illustrates that
this sector can play a decisive, positive role in our energy future – and one in which all our readers and members will
participate. Our thanks once again for reading Wireline.
Design, Digital & Editorial Team
OGUK
Wireline is published by Copyright © 2021 The UK Oil and Contributors wirelinemagazine.co.uk
OGUK, the voice of the Gas Industry Association Limited Jeremy Bowden
UK oil and gas industry. trading as OGUK. Jack French
Contact the editorial team on OGUK Wireline Team
editorial@oilandgasuk.co.uk 1st Floor, Paternoster House, Andrew Dykes
65 St Paul’s Churchyard, Anthony Barter
OGUK is not responsible for London EC4M 8AB David Jeffree
any loss, injury, damage or
costs resulting from the use of Telephone: 020 7802 2400 Cover image
products or services advertised www.oilandgasuk.co.uk Courtesy of Bristow
or featured.
ISSN 2053-5392 (Print),
4ISSN
| w2053-5406
i r e l i n e | S (Online)
pring 2021
OGUK decommissioning manager Joe Leask visits the
Well-Safe Guardian in February 2020.
Revised OGA
Strategy now in
force
The revised Oil and Gas Authority (OGA)
Strategy, which was laid before Parliament
on 16 December 2020, has come into force
as of 11 February 2021.
The revised Strategy reflects the ongoing
energy transition and features a range of net
zero obligations on the oil and gas industry,
including stepping up efforts to reduce
production emissions, support carbon
capture and storage (CCS) projects and
unlock clean hydrogen production.
Government forecasts show oil and gas
will remain part of the energy mix for the
foreseeable future, as we transition to net
zero. The OGA believes that the industry
has the skills, infrastructure and capital
necessary to help ensure that the net zero 22 being deferred into the future.
target is achieved.
Decommissioning The survey identified a 30 per cent reduction
In addition to the net zero obligation, the Insight confirms in expenditure from £1.47 billion in early
2020, to around £1.08 billion but despite
revised Strategy also calls on industry to
work collaboratively with the supply chain sector resilience in these pressures, the sector is in no rush to
decommission. The report highlights the
and actively support CCS projects, and the
OGA will monitor closely and ensure that
disruptive year resilience of the hard-pressed supply chain
carbon costs are considered in regulatory in delivering the roster of projects that have
The impact of a challenging year for gone ahead this year, but also continual
decisions.
the industry is captured in OGUK’s performance improvement in terms of cost
Decommissioning Insight 2020 which reveals and efficiency.
The OGA is now actively implementing the
the decommissioning industry, though
revised Strategy into its work; guidance
resilient, has not escaped the impact of
documents are being updated to help
COVID-19 and the collapse of commodity
industry understand how operations may
prices.
need to alter in order to achieve the new
requirements.
OGUK attends
Given the major disruptions of 2020, OGUK
conducted an additional interim survey of BEIS Select
A new stewardship expectation is also being
developed to reflect the revised Strategy and
operators in June 2020 to provide deeper
insight of the impact of COVID-19 on
Committee
its net zero target. Further information on
decommissioning activity. This shows that During the week of the Government’s
the revised Strategy and how it will impact
continuing market uncertainty has led to reshuffle in early January 2021, OGUK chief
on the oil and gas industry is available on the
around £500 million of decommissioning executive Deirdre Michie OBE appeared
OGA website.
expenditure previously scheduled for 2020- before the House of Commons BEIS Select
wireline | Spring 2021 | 5
Committee to give evidence on the Energy collaboration index to 7.1 in 2020 from
White Paper (EWP), published by the 7.0 in 2019, highlighting the flexibility and
department in December. Collaboration support the supply chain showed during an
The recently published paper provides a
success rates hit exceptionally challenging year.
critical opportunity for a transformational record high Collaboration success rates hit a record high
North Sea Transition Deal (NSTD) to deliver in 2020 with more than 50 per cent of survey
new business opportunities, jobs and skills at Improving commercial models which respondents saying over half of their efforts
pace, and protect and transition the wider support cost reduction whilst incentivising were successful. However, while COVID-19
communities which currently rely on the the supply chain could re-energise saw many businesses work together to
oil and gas sector. The committee also had collaboration, according to the findings of address the challenges, respondents said
representatives from the Environmental the annual Deloitte and OGUK Collaboration the pandemic and consequent economic
Audit Committee (EAC) in attendance to Report, published in late January. downturn also led to disadvantageous
quiz industry representatives on the content commercial behaviours such as cancelled or
and deliverability of the much-anticipated Deloitte and OGUK’s industry-wide modified contracts.
document. Collaboration Index (CI), which measures
the effectiveness of companies as partners OGUK will issue a call to action to promote
Commenting on the Paper, Michie said: “We in projects, is part of the annual UKCS adherence to its Supply Chain Principles
welcome the Publication of the Energy White upstream supply chain collaboration survey. and to communicate the benefits after the
Paper as it demonstrates a holistic approach The report showed a slight increase in the survey received a broad mix of views.
to energy, which is something we have been
asking for in terms of the development of a
comprehensive energy strategy.
“It is a timely document which sets out
ambitious and challenging expectations
of the UK energy industry, including the
offshore oil and gas sector. “It seeks to build
on the strengths of our sector and others
in a meaningful way – by recognising the Source: UKCS Upstream
contribution the industry can make to a Collaboration Survey
successful transition.
“We’re proud to tell our story. The sector
is already in action and changing – building
on its strong focus on oil and gas to
incorporating wind, CCUS, hydrogen, wave
and tidal energies, but there is a still a need
for governmental support to help our
workers and communities transition at pace.
“We must use this as an opportunity to
solidify the importance of our workforce
and produce reliable frameworks to support
the transition of their knowledge and skills.
We now need government and Parliament to
develop strong legislation to help us deliver
our net-zero ambitions whilst ensuring
our energy communities are secure and
equipped with the necessary infrastructure
for a fair transition.”
6 | wireline | Spring 2021
News
Principal Sponsor
Company Award winners
Workforce Engagement
(sponsored by Wood) –
Spirit Energy
Business Innovation
SME – Omniscient Safety
Innovations Ltd
Business Innovation Large
Enterprise – Petrofac
Diversity & Inclusion
OGUK builds Congratulations (sponsored by Apache) –
on assurance to OGUK Award Baker Hughes
resources for HCR Winners Energy Transition
prevention The final weeks of 2020 saw hundreds attend
(sponsored by Fairfield
Decom Limited) – TOTAL
a virtual gathering to celebrate the winners
OGUK’s Assurance and Verification Task E&P UK Ltd
of the OGUK Awards 2020. Streamed via
Finish Group has continued its work with the YouTube, LinkedIn and Facebook Live,
production of supporting documentation 27 finalists from more than 90 entrants Excellence in
following the recent publication of the contended for the ten awards on offer, Decommissioning –
Assurance Guidelines. including the prestigious first-time Audience Fairfield Energy Ltd
Award, which received over 19,000 votes.
The new Assurance Toolkit contains the
Assurance Guidelines, plus a Gap Analysis Renowned industry expert John Hogg, Individual Award winners
tool, allowing organisations to identify HSSEQ Director TAQA Bratani Ltd, received
strengths and weaknesses in the Mentor of the Year for the vital role he has
management and realisation of their Apprentice of the Year
played and his extraordinary commitment to
Assurance Programme, and a leadership (sponsored by OPITO)
aiding learning and improvement across the
training slideshow. – Scott Milligan, Trainee
industry.
Mechanical Technician,
The Assurance Toolkit will be further CNOOC International
Meanwhile Connor Robb, Project Manager at
enhanced by a Practitioner Training Baker Hughes, took the Graduate of the Year Graduate of the Year
Slideshow, also complete with presenter’s trophy for making his mark in the UK oil and (sponsored by ECITB)
notes. This training document is aimed at gas industry, delivering tangible benefits to – Connor Robb, Project
those who support assurance activities, his employer, and being identified as a future Manager, Baker Hughes
such as OIM’s, Safety Representatives, leader by peers.
HSE Advisors and Technical Authorities.
Mentor of the Year – John
The Assurance and Verification Task Finish OGUK’s own health, safety and environment Hogg, HSSEQ Director,
Group also ran a pilot training session in early director Trevor Stapleton was also TAQA Bratani Ltd
February, prior to publishing the finalised recognised for his outstanding teamwork
slideshow. this year in supporting the industry through
the efforts of the Pandemic Steering Group,
helping to deal with the challenges brought
wireline | Spring 2021 | 7
on by COVID-19 and protecting our people OGUK thanks sponsors IOGP, OGA, Repsol Subsea 7. Arne takes over from Phil Kirk, who
while maintaining safe operations. Sinopec and registration sponsor Petrofac. is stepping down from the role.
Our thanks to the following organisations
Congratulations once again to all our for their help as session champions: Decom Based in Equinor’s UK operations
winners, and our sincere thanks to our North Sea, IOGP, OGA and the OGA headquarters in Aberdeen, Arne leads the
principal sponsor Shell and all our Award Decommissioning Task Force, OGTC, Robert organisation supporting Equinor’s UK and
sponsors, who again helped make the event Gordon University and SPE Aberdeen. Ireland upstream activities, which includes
a success. the Mariner development and Rosebank, one
of the largest undeveloped resources on the
UKCS.
Equinor Senior Arne has held a broad variety of leadership
Digital Vice-President roles across Equinor, including his previous
Decommissioning assumes Co-chair
position of Vice President for Technical
Excellence in a global business function,
Conference of OGUK board and brings experience from project
development, integrity management and
delivers global process safety in operations from the UK
Arne Gürtner, Senior Vice President UK &
connectivity Ireland Offshore at Equinor has now assumed
and Norwegian Continental Shelves, as
well as global research and technology
the role of Co-chair at OGUK, bringing with development. He also currently holds the
In November OGUK hosted its first him a wealth of industry experience. In this
ever digital Offshore Decommissioning position of OGA Asset Stewardship Task
capacity, Arne will work with Contractor Co- Force Co-Chair.
Conference. More than 1,200 delegates chair, Phil Simons, VP North Sea & Canada,
registered for the dynamic, interactive and
international event with online participants
joining from more than 60 countries around
the world.
Using a new digital platform, participants
gained access to a free and fully immersive
experience enabling them to interact with
industry experts, visit 20 virtual exhibition
stands and engage in online networking.
Operators, supply chain companies and
academics engaged on issues including
decommissioning in a low carbon world,
innovative technology, evolving regulatory
changes, and recent research into the
influence of man-made structures in the
marine environment.
Among the 11 topics on the programme,
delegates also discussed collective efforts
to shape the future of UK decommissioning,
growing exports and opportunities
presented by energy integration, carbon
capture and storage and innovation in low
emissions decommissioning. Output from
the conference will inform OGUK’s work in
shaping the decommissioning agenda while
also highlighting priority areas for future
industry initiatives.
8 | wireline | Spring 2021
News
Overleaf left: Arne Gürtner, Senior
Vice President UK & Ireland Offshore
at Equinor.
Credit: Michal Wachucik
Left: OGUK Business Outlook 2021
be attracted by the remaining potential of GMB, RMT and Unite, and a dedicated
the North Sea. project team have worked together over the
Business Outlook past 13 months to develop the new ESA. It is
warns £3bn lost To realise the UK’s shared climate goals, as
well as maintaining affordable energy and
a landmark employment agreement for the
UK offshore energy industry that supersedes
investment could a strong base for the UK’s energy supply the Offshore Contractors Partnership
chain to build from, OGUK reinforced that Agreement (OCPA) which expired at the
threaten green government policy and regulation must end of 2020. The purpose of the ESA is to
recovery continue to prioritise domestic production
over imported energy.
promote fairness and stability and to create
a sustainable foundation for employees,
The findings of OGUK’s Business Outlook employers, and operators in the UK offshore
2021 highlight the critical need for secure energy industry.
and sustained investment in the sector to
Following extensive and proactive
help the UK quickly realise a net-zero future. Collaboration engagement across the supply chain the
The report shows industry is facing a period delivers new agreement has been endorsed by the
workforce and will now be implemented by
of extreme uncertainty as it grapples with
the after-effects of the pandemic, which has Energy Services a large proportion of our industry’s supply
chain. The delivery of this agreement will
led to a significant decline in offshore activity
levels and overall levels of expenditure falling
Agreement promote a safe, stable, and fair operating
by more than a quarter in the last year alone. environment as our industry journeys
The Energy Services Agreement (ESA), towards economic and green recovery in line
which will set base terms and conditions for with Roadmap 2035.
Despite the challenges of the pandemic and thousands of employees working offshore
the severe economic downturn, production in the UK, is a leading example of impactful,
from UK waters still managed to safely meet Facilitation of this new agreement will
cross-industry collaboration. be carried out by OGUK’s Workforce
around 70% of the country’s oil and gas
needs in 2020, evidencing the continued Engagement and Skills Team. If you have any
Fourteen service companies (Aker Solutions, questions about the ESA, please contact the
need for an indigenous supply. There are Altera, Brand, KAEFER, Muehlhan, Navitas,
also some early signs of improved sentiment team directly.
ODE, Oleochem, Petrofac, Semco Maritime,
emerging, with new investors continuing to Stork, Wood and Worley), trade unions
wireline | Spring 2021 | 9
CARBON
CAPTURE
& STORAGE
HYDROGEN SUPPLY CHAIN
TRANSFORMATION North Sea Transition Deal
SUPPLY
DECARBONISATION
PEOPLE
& SKILLS
March 2021
Key commitments in the Transition Deal OGUK chief executive Deirdre Michie OBE
North Sea include the sector’s target to reduce said: “The North Sea Transition Deal is
Transition Deal emissions by 10% by 2025, 25% by 2027, and
50% by 2030. By 2030, the sector will also
a transformative partnership which will
harness the expertise of the UK offshore
to deliver home- voluntarily commit to ensuring that 50% oil and gas industry to urgently meet the
of its offshore decommissioning and new country’s climate ambitions of net zero
grown transition energy technology projects will be provided emissions by 2050.
towards net zero by local businesses, helping to anchor jobs to
the UK. “It will unlock billions of pounds of investment
On 24 March, the UK government announced and see government and industry work
that it will deliver a transformational deal in The deal will in turn help to unlock up to £16 together to deliver a homegrown energy
partnership with the UK oil and gas industry billion in investment over the next decade in transition, realising innovative low carbon
to tackle climate change and deliver key crucial low carbon solutions including CCUS solutions that can be exported globally.
aspects of their ten-point plan. and hydrogen, and support the creation
of up to 40,000 new energy jobs in industrial “The Deal will safeguard UK energy security,
The deal is the first of its kind by any G7 heartlands across the UK. providing affordable energy to millions
country, setting an example of how oil and of households, secure tens of thousands
gas producing countries can move fairly It comes after the sector published Roadmap of jobs in industrial heartlands across the
towards a lower carbon future in a way 2035: A Blueprint for Net Zero, in 2019, and country and support the UK economy. It is
which supports the economy, jobs, and was one of the first industry responses to the the first deal of its kind by any G7 country
energy communities across the UK. government’s climate change commitments. and a striking example of the UK showing
global leadership on climate change ahead
Developed in partnership with OGUK, the The deal has been agreed between Business of COP26.”
North Sea Transition Deal outlines over and Energy Secretary Kwasi Kwarteng on
50 government and industry actions to behalf of the UK Government and OGUK Learn more about the North Sea Transition
accelerate moves towards the government’s Chief Executive Deirdre Michie on behalf of Deal on p. 14.
target of net zero emissions by 2050. industry.
10 | wireline | Spring 2021News
workforces. A highlight of the conference
was an audience with Professor Sir David
OGUK HSE Spiegelhalter FRS OBE, who delivered a
Conference keynote on ‘Trustworthy Communication In
The Age Of Covid’.
reflects on lessons
Meanwhile, the second day of programming
and impact of examined the industry’s efforts and
COVID opportunities to move towards net zero,
and the current and future state of process
Held March 23-24, OGUK’s HSE Conference safety.
saw over 350 attendees join over the two day
event, which included 9 conference sessions, Organisers were delighted to welcome
14 exhibitors and numerous conference a diverse range of participants to the
chat rooms. Attendees heard from industry sessions, including Safety Reps and OGTAP
leaders, regulators (OPRED, BEIS and HSE) apprentices, along with topic specialists
along with subject experts across the fields from across the sector.
of health, safety and environment.
OGUK would like to thank sponsors TOTAL
Convened under a conference theme of (principal), Stork, Quensh and OPITO for
‘Looking Back to Move Forward’ the sessions their much-valued support. OGUK members
reflected upon COVID-19 and the impact it and attendees can catch up on all the
has had upon the sector, and importantly recordings in the members gallery, available
what this has meant for on- and offshore via the OGUK website.
wireline | Spring 2021 | 11Future of Energy At Deloitte, we see a ‘connected energy future’ where we’re all in it together, with a common purpose, and each with a clear role to create our new energy world. We understand the challenges and opportunities the Future of Energy brings and actively help our clients accelerate impact on their markets, stakeholders and society. Connect for a new energy future www.deloitte.co.uk/FutureofEnergyUK © 2020 Deloitte LLP. All rights reserved.
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wireline | Spring 2021 | 13North Sea Transition Deal -
powering a cleaner UK
OGUK chief executive Deirdre Michie sets out what
A
the North Sea Transition Deal means for the future of the UKCS.
s I’m sure you’re now aware, a year where the eyes of the world are on the UK
after many months of hard as COP26 comes to Glasgow, today’s agreement
work, the UK Government, reaffirms that the UK government and the offshore
announced in March the oil and gas industry are committed to a low-carbon
successful agreement of the future.
transformational North Sea The deal comes at the end of what has been an
Transition Deal . extremely challenging 12 months for our industry.
The Deal, which is the We estimate that by the end of the year as many as
first of its kind by any G7 nation, recognises that 30,000 jobs could be lost if the current conditions
the oil and gas industry is and will continue to be continue. This deal however goes a long way to
key to helping to deliver net-zero carbon emissions supporting and sustaining our resilient workforce,
by 2050. It also looks to futureproof hundreds of who throughout the pandemic, worked tirelessly to
thousands of jobs for our energy communities in keep our homes lit and our hospitals powered.
industrial heartlands across the UK and unlock the And it is this workforce who will be critical in
experience and skills of our people to contribute to implementing the North Sea Transition Deal. Within
the solutions that will be needed to deal with the our industry exists a level of talent, skill and expertise
difficult challenges of climate change. which will be key to unlocking the challenge of
Through this deal, our industry will continue net-zero. For our industry to achieve the tough
to move urgently towards a lower carbon future emissions targets we’ve set ourselves disruptive
and show global leadership in sustainability. The thinking and brave decision-making from the people
government, for their part, have agreed to create who make this industry special will be key.
an internationally competitive and level playing I’d like to take this opportunity to thank the OGUK
field that prioritises UK energy, jobs, businesses and Board and those Board members who so closely
communities, encouraging innovation and sustaining with us on the Task Finish Group, as well as our
the investment needed to realise net zero. Sustainability Director Mike Tholen and all other
Representing months of collaborative work OGUK colleagues for their hard work in achieving
between industry the UK government, this this landmark agreement. Over the coming months
agreement provides five core commitments for and years, we look forward to showcasing how our
both industry and government to work to. Once industry can play a crucial and constructive role in
fully realised, this crucial agreement can deliver our tackling climate change.
shared net-zero goals at pace, grow the economy To explain the Deal further, we’ve put together the
and exports, create tens of thousands of jobs, and animation overleaf.
continue to provide affordable, sustainable energy Lastly, we’d really value your support to make
to millions as we navigate the energy transition. In sure this important milestone is publicised as
widely as possible. Join us on our net-zero journey
and get involved in the conversation by using
#TransitionDeal on social media.
North
Kind regards,
Sea T
ransit
ion D Deirdre Michie OBE
eal
Chief Executive, OGUK
CARBON
CAPTURE
& STORAGE
HYDROGEN SUPPLY CHAIN
TRANSFORMATION
March
2021 SUPPLY
DECARBONISATION
PEOPLE
& SKILLS
#TransitionDeal
14 | wireline | Spring 2021North Sea Transition Deal at a glance:
SUPPLY Cut emissions
DECARBONISATION: Cut emissions by 60 million tonnes – equivalent
cutting emissions through an
emissions reduction programme
to taking 2.5m cars off the road, with 15 million
tonnes to be reduced from industry production
by 2030
World-leading infrastructure
CARBON CAPTURE
& STORAGE: Boost the world-leading infrastructure - carbon
capturing carbon released through capture - scientists (and the Committee on
production and in society to reduce
UK’s carbon footprint Climate Change) say is necessary to tackle
climate change.
Kickstart hydrogen in the UK
HYDROGEN: Building a platform to provide a needed
developing hydrogen revolution alternative for heating, heavy industry, and
in the UK to provide a realistic
alternative for heating, heavy transport, providing resilience to the energy
industry, and transport
system as a whole.
SUPPLY CHAIN Investment for the energy transition
TRANSFORMATION:
Unlock up to £16bn in investment over the next
developing expertise that underpins
energy-sector wide export growth decade in crucial low carbon solutions
from the UK, creating a globally
competitive energy supply chain
with great reputation
Secure & retain jobs
PEOPLE Secure 40,000 energy jobs in industrial heartlands
& SKILLS:
securing, stimulating, and across the UK, ensuring energy communities
creating tens of thousands of like Aberdeen and Teesside can successfully
high-quality jobs in industrial
heartlands across UK transition, retaining jobs and skills and creating a
more diverse and inclusive workforce
wireline | Spring 2021 | 15Member
News
collaborations such as this will drive the The new service will enable operators to
standardisation required to reduce the time move away from this time-based calibration
Repsol Sinopec and cost of tie-back developments. Petrofac approach to condition-based calibration,
is thrilled to combine the asset knowledge by using statistical modelling techniques to
forms alliance gained as Repsol Sinopec’s operations and predict meter performance based on live
maintenance partner, with our engineering and historical data. In addition, diagnostics
to maximise and project management expertise in information can be used to understand what
recovery support of this exciting collaboration.” may be negatively impacting a meter by
analysing hidden patterns to identify specific
Repsol Sinopec Resources UK Limited has fault conditions.
formed an innovative partnership with
energy service providers TechnipFMC and Gordon Lindsay, Head of the Digital R & D
Petrofac, creating an industry alliance which TÜV SÜD launches Group at TÜV SÜD National Engineering
Laboratory, said: “Thanks to advances in
seeks to maximise the recovery of oil and gas
from the UK Continental Shelf (UKCS). oil and gas data technology and increased connectivity
through the Internet of Things, vast
The partnership will offer the owners of oil
analytics service amounts of data exist but only a fraction
and gas discoveries near Repsol Sinopec’s of its potential benefit is realised. Our new
TÜV SÜD National Engineering Laboratory Data Analytics service uses data in real-time
existing North Sea infrastructure hubs
has launched a data analytics service to help to detect when a meter is not performing
an integrated, technically robust and
oil and gas operators minimise flow meter to specification and identify the cause of
commercially flexible solution to meet their
downtime and maintenance, significantly this failure. This means that end-users can
near to mid-term development objectives.
lowering operating costs. avoid shutting down production to remove a
Under the terms of the partnership, device from the pipeline before a solution to
The total cost of calibrating an offshore flow a fault can be found. Recalibrations are both
TechnipFMC will deploy its iFEED front-
meter is estimated to be in the region of costly and labour intensive, so proactively
end engineering and design solution and its
US$50,000 or more, once all costs incurred determining the optimal calibration date
integrated subsea business model, ‘iEPCI’,
are accounted for. Traditionally, irrespective delivers increased measurement confidence,
whilst Petrofac will provide all topsides
of whether a flow meter is deviating from reduced downtime and cost savings.”
engineering and operations support. Repsol
its required operating parameters it will be
Sinopec will provide access to its facilities
routinely scheduled for recalibration and
under the industry-led infrastructure code
operations stopped unnecessarily.
of practice.
Repsol Sinopec CEO, José Luis Muñoz
commented: “As an industry we must
get better at recognising the benefits of
utilising existing North Sea infrastructure
to maximise the economic recovery of
the basin, minimise carbon emissions and
transition to a lower carbon economy. This
industry collaboration brings together three
well respected, experienced companies
that have the resources, drive and ambition
to support the continued success of the
industry for many years to come.”
Petrofac’s Engineering and Production
Services managing director of West
business, Nick Shorten, said: “With more
than three billion barrels locked in marginal
fields across the UKCS, small pools
represent a big opportunity. Industry level
16 | wireline | Spring 2021Below left: Salus Technical MD and founder,
David Jamieson.
Below: Equinor uses HoloLens technolgy to
visually inspect the Mariner A helideck.
Source: Equinor
so this will be a huge boost to the students’ avoiding any impact to offshore operations
future career prospects. Here at Salus while keeping personnel levels in the field
Salus Technical Technical we are absolutely passionate about as low as possible to mitigate transmission
supporting the training and development of risks.
helps bridge the next generation of engineers, and we
look forward to working with the universities HoloLens, the mixed reality headset, was
gap between going forward,” added David. used in this first virtual helideck inspection
academia and and certification. Using the tool, the team
offshore was guided by the onshore
industry inspector to give full visibility of all areas of
Aberdeenshire-headquartered process
Equinor helideck the helideck, including walkways, potential
obstructions and key equipment, such as the
safety firm, Salus Technical, has teamed up certified following helifuel system, enabling them to complete
with the University of Edinburgh to provide the full audit from their home office.
the next generation of engineers the first virtual
opportunity to work with real-life industry
software.
inspection The visible detail provided by HoloLens,
supported by technical documentation,
Equinor, together with the Helideck led to the HCA issuing a full two-year
Salus Technical MD and founder, David recertification for the Mariner A helideck.
Certification Agency, has completed the first
Jamieson, offered the company’s new risk
virtual offshore helideck inspection - a first
assessment software solution – Bowtie Helideck Certification Agency managing
on the UKCS and in the company.
Master - free-of-charge to university director Alex Knight commented: “HCA
students of degrees related to process has been conducting trials using virtual
After the onset of the pandemic last spring,
safety, such as chemical and process safety technology. The system requires further fine
Equinor, began exploring digital options with
engineering. Aimed at enhancing and tuning and development, but the exercise
the Helideck Certification Agency (HCA).
streamlining the risk assessment process with Equinor was the first time we did it
The idea was initially driven by COVID-19
across a range of sectors, Bowtie Master for real and were able to issue a renewal
restrictions. The aim was to secure the
will give these students the opportunity to certificate based on the audit evidence.”
recertification of the Mariner A helideck,
experience pioneering industry-relevant
software as part of their studies.
The University of Edinburgh has accepted
the offer for their students, and asked David
to carry out a lecture for undergraduate
students on their Chemical Engineering
degree course. David’s lecture on bowtie
diagrams and barrier management will form
part of a module on ‘Advanced Process
Safety’. David is currently in discussions
with a number of universities across the
UK, several of whom are keen to use the
software with their students.
A cloud-based application, Bowtie Master
facilitates the building and sharing of these
bowtie diagrams, offering unprecedented
capabilities to design, collaborate on and
share these diagrams across disciplines and
organisations.
“I know from my own experience, I didn’t
encounter any real-life, industry software
programmes until I was actually working,
wireline | Spring 2021 | 17Member
News
gas methane regulation in the EU and gives
consideration to a performance standard
for gas used or sold in the EU. The EU is
the world’s largest natural gas importer,
with 85% of its consumption coming from
outside the EU.
Neptune is a member of the Oil and Gas
Methane Partnership (OGMP) and is a
signatory to OGMP’s new 2.0 framework,
which aims to improve the reporting
accuracy and transparency of methane
emissions. Organised by the UN Environment
Programme, the European Commission,
the Climate & Clean Air Coalition and EDF,
OGMP will create a robust set of measures
for participating companies to document
and report their emissions performance to
better inform customers and regulators.
Currently, there are 65 global oil and gas
Sea offshore facility, such as gas separation,
companies participating in OGMP.
drying and compression technology, and
Neptune Energy, flaring and venting.
The study is due to commence in July this
EDF to pilot Global investment firm The Carlyle Group, a
year with initial results expected in October.
The outcomes will be published in a scientific
shareholder in Neptune Energy, is supporting
novel method and observing the project to help drive
peer-reviewed paper in 2022.
to measure research learnings and improved standards.
offshore methane Pete Jones, Neptune Energy’s VP Operations
Europe, said: “Neptune Energy already has
emissions one of the lowest methane intensities in Ancala Midstream
Neptune Energy and Environmental Defense
the sector, at 0.01%, compared with the
industry average of 0.23%. But we want to
secures gas
Fund (EDF) have announced a scientific
collaboration to test a first-of-its-kind
go further and have set a target of net zero transport and
methane emissions by 2030. This study
approach for measuring oil and gas methane
will help us identify where we need to take processing
emissions from offshore oil and gas facilities.
further action and how we can apply new
measurement techniques across our global
contracts with
EDF will coordinate a team of international
researchers that includes Scientific Aviation,
operated portfolio.” Lundin
a provider of airborne emissions sensing,
“Data transparency is paramount,” said Mark Ancala Midstream Acquisitions has secured
and Texo DSI, a UK-based drone platform
Brownstein, EDF’s Senior Vice President for a life-of-field contract to transport and
provider, to evaluate advanced methods for
Energy. “Oil and gas companies have made process gas from the Solveig field located in
quantifying facility-level offshore methane
commitments to tackle emissions, but the Norwegian sector of the North Sea.
emissions, identify key sources and prioritise
you can’t just assert strong environmental
mitigation actions.
performance. You must show it. Having The Solveig field is operated by Lundin
credible data is the first step and we recognise Energy Norway, one of Europe's leading
State-of-the-art drone, aircraft and methane
Neptune Energy for valuing emissions independent oil and gas exploration and
sensing technologies will be deployed on the
reporting that is based on rigorous science.” production companies. First gas is expected
Neptune-operated Cygnus platform in the
in Q3 2021 and will be processed through
UK Southern North Sea to provide a close-
Last October, the European Commission Ancala Midstream’s capacity in the Beryl
up view of operations typical of a North
introduced a strategy that calls for oil and pipeline and the Scottish Area Gas Evacuation
18 | wireline | Spring 2021Left: Neptune Energy's Cygnus
Alpha platform.
Right: Overview of the HyNet North
West project.
01 02 03 04 05 06 07 08 09 10 11
HYDROGEN: THE TIME DELIVERABLE CREATING HOW IT ALL THE NATURAL COLLABORATIVE KEEPING IT STARTING ON TARGET IN SUMMARY:
BUILDING IS NOW AND JOBS AND FITS TOGETHER PLACE TO SET LEADERSHIP SIMPLE FOR AN ONGOING DELIVERY AN UNMISSABLE
A SUSTAINABLE SCALABLE OPPORTUNITIES NET ZERO IN INVESTORS CONVERSATION OPPORTUNITY
FUTURE MOTION
pipeline and terminal (SAGE System) at St. of choice. We have worked closely with generation and transport.
Fergus in Scotland. CONTENTS
Lundin to develop innovative solutions to the
technical challenges faced and in doing so The project will be the first carbon capture
Aberdeen headquartered Ancala Midstream reduced project development costs for the and storage (CCS) infrastructure in the
will also provide transportation and Solveig and Rolvsnes Owners.” UK. Eni will play a pivotal role as part of the
processing for Lundin’s extended production consortium by transporting and storing the
test on the Rolvsnes field which is expected CO2 in its depleted hydrocarbon reservoirs,
to commence production in Q3 2022 and is located at around 18 miles offshore in
also located in the Norwegian Sector of the Liverpool Bay, for which the company was
North Sea. Step forward for awarded a carbon storage licence by the
UK Oil and Gas Authority (OGA) in October
Solveig is the first of two new fields tying HyNet North West 2020.
into Ancala Midstream’s capacity in the
SAGE System in 2021 and will increase Ancala project in UK Once operational, the project will transform
Midstream’s throughput in the system to 55%. one of the most energy-intensive industrial
SAGE comprises a 323-kilometre, 30-inch Eni has confirmed that the HyNet North West districts in the UK into the world’s first low
bore pipeline and a gas processing terminal. integrated project, aimed at decarbonising carbon industrial cluster and will help reduce
Gas is transported through the Beryl Pipeline the important industrial district in the CO2 emissions by up to 10 million tonnes
and SAGE pipeline and processed in the North-West of England, has received £33 every year by 2030, delivering 80% of the
SAGE terminal from multiple fields across the million in funding from UK Research and Government’s new UK-wide target of 5GW
UK and Norwegian sectors of the North Sea. Innovation (UKRI). Issued through the of low carbon hydrogen and playing a crucial
The terminal also processes gas received by Industrial Decarbonisation Challenge (IDC) role in the target of net zero emissions by
way of the Britannia pipeline which serves fund, the funding covers around 50% of the 2050.
the Britannia field and its satellites. investment necessary to finalise ongoing
planning studies with the aim of the site This goal is fully aligned with Eni’s
Ancala Midstream chief executive Jim becoming operational by 2025. commitment to the energy transition and
Halliday commented: “The addition of two decarbonisation. CCUS, in particular for “hard
new fields and the substantial reserves Alongside Eni, the HyNet North West project to abate” industrial emissions, represents
growth from the prolific Edvard Grieg area, is being led by a consortium of regional an important solution towards meeting the
provides further evidence of the strong industrial companies. The site intends to targets set by the Paris Agreement and the
prospectivity in the SAGE catchment area, as capture, transport and store CO2 emissions Agenda 2030 for Sustainable Development,
well as the confidence our customers have from existing industries and from future and is also considered crucial by the UN, as
in the SAGE System as their offtake system production sites for blue hydrogen, as stated in its latest Unece report.
an alternative fuel for heating, electricity
wireline | Spring 2021 | 1920 | wireline | Spring 2021
Looking up at ORION:
Shetland’s green hub
Cutting the carbon intensity of oil and gas production will require new clean energy
to feed the upstream sector, but it could also act as a catalyst in the wider energy
transition. Shetland’s ORION project highlights the potential scope and scale an
integrated approach can bring.
W
ith the UK now committed to for the region when oil and gas output does eventually
transition to a net-zero carbon cease.
economy by 2050, oil and gas Now known as the ORION (Opportunity Renewables
companies operating in the Integration Offshore Networks) project, it was
North Sea are increasingly launched in April 2020 as the “Shetland Energy Hub”
focused on cutting the carbon emissions associated with aspirations to turn the islands into a green energy
with production. Once a field has been found and hub. The new ORION name loosens its attachment
developed, the biggest source of carbon (with the to Shetland, allowing the scheme to be replicated
exception of flaring and venting) is power generation elsewhere in the UK and possibly even further afield
on rigs, which has traditionally been fuelled by gas or (there are already another five similar but smaller
diesel. These emissions are significant, with power projects pencilled in for other areas of the UK
generation at UK offshore facilities accounting for Continental Shelf [UKCS]). Currently ORION is led by
10% of UK power generation emissions and 70% of Shetland Islands Council (SIC) and Scotland’s Oil & Gas
upstream operational emissions, according to the Oil & Technology Centre (OGTC), working with Highlands and
Gas Authority (OGA). Islands Enterprise (HIE) and alongside a steering group
Supplying rigs with low-carbon electricity is one including BP, Equinor, Shell, SSE, Total and EnQuest,
direct route to reducing these emissions, and in turn which meets monthly.
lowers the carbon intensity of production sharply.
Accordingly, this is now a major objective of many oil Enabling expansion
companies, many of whom have set their own net-zero ORION Project Coordinator Gunther Newcombe spoke
targets. Overall, the industry has pledged to halve its to Wireline about the project. Gunther noted that
operational emissions by 2030, and most new projects currently ORION was primarily a strategic framework,
must prove their low-carbon credentials if they are to comprised of various interdependent parts that would
be sanctioned today. all need to be in place, connected and optimised during
Norway has already had considerable success in a 20-year plan with various stages. Together, project
supplying green power from its grid (mostly hydro- costs are estimated to be about £5-10 billion.
electric) to offshore platforms such as Sleipner, Troll C The project’s first stage is to ensure green power is
and more recently, Johan Sverdrup. Together, this has available (enabling projects), and then use it to electrify
avoided more than 1.3 million tonnes of CO2 emissions new rigs to the west of Shetland, including Clair South,
per year, according to Equinor. The UK has also seen Rosebank, and Cambo. West of Shetland has half the
advances in the area, including plans at Total’s Culzean remaining resource potential of the UKCS, and projects
field and related developments at Equinor’s Mariner, “cannot get sanctioned or secure investment without
but not on the scale of the Norwegian Continental Shelf net zero operations,” Newcombe said. “The clock is
- at least until now. ticking for licensees – they will have to move soon given
In Shetland, leading North Sea producers and all levels current licence conditions.”
of government are moving forward with a project that In December, the OGA had its remit modified from
will not only supply green power to rigs and pumping maximising economic recovery to include carbon
stations, but also encourage large-scale development emission reduction, suggesting that even if companies
of wind resources and potentially hydrogen production. wanted to go ahead with fossil fuel powered platforms,
Left: The constellation Together, these measures could extend the usefulness the OGA may not approve them. The project is also an
Orion over Shetland.
Credit: Joe Leask
of North Sea infrastructure around Shetland, and important step in line with OGUK’s Roadmap 2035: A
provide a promising green energy production future Blueprint for Net Zero.
wireline | Spring 2021 | 21Great potential
Wind Hydrogen CO2
3 GW 4 GW 60,000 tonnes p.a usage on Shetland for transportation Blue hydrogen plant emissions transported
power and heating, based on onshore wind & H2 supply via EOSPS pipeline to Magnus ca 20,000 tonnes p.a
350,000 tonnes p.a. export capability Shetland use of wind & hydrogen power
to UK and European customers, reduces emissions by 650,000 tonnes p.a
based on 4GW offshore wind supply
Industry Additional Space Electrification of offshore
opportunity potential Centre oil & gas facilities in region
reduces emissions by
O2 for fish
8 million tonnes p.a
farming
2 GW
Sullom Voe Sullom Voe Sullom Voe
Onshore wind Tanker export
potential 0.75GW ScotWind to Europe
NE1 block
Viking Wind Farm 443MW
Lerwick Lerwick Lerwick
600 MW Interconnector Pipeline export
to UK
Significant wind resource enables offshore electrification & H2 production at scale Orion Clean Energy Project Corporate Summary
The next batch of west of Shetland projects are offshore wind development work for the next 50 years. Above: Green
components in
expected to require up to 150-200MW of firm clean The ORION plan also includes potential blue hydrogen ORION’s Shetland plans
energy capacity from Shetland. This could be met by development, through a mixture of new and existing Right: Sullom Voe
the Viking 443MW windfarm on Shetland – currently infrastructure. Associated gas from Clair and other Terminal from the
Houb of Scatsta /
under construction - with back-up from the 600MW West of Shetland fields, plus gas-condensate from Mike Pennington / CC
interconnector with mainland Scotland, where an Laggan-Tormore (which is currently piped to St Fergus BY-SA 2.0
increasingly high proportion of generation is from in Aberdeenshire), could be used as initial feedstock.
renewable sources, again mostly wind. Viking will be Steam methane reformer (SMR) units could be built on
complete by 2025, and another 300MW of wind is Shetland, and waste CO₂ used for enhanced oil recovery
earmarked for onshore Shetland, along with some tidal at the Magnus field, and possibly others. Surplus
capacity, which would be enough to power the entirety hydrogen would be exported by tanker or mixed with
of Shetland (including electrification of its ports) with gas in the St Fergus pipeline.
clean energy. At this stage, the blue hydrogen project is almost
Further electrification of offshore platforms to the certainly a cheaper way of producing the hydrogen,
east of Shetland, and eventually hydrogen production, but once offshore wind power is installed at scale and
would require large-scale offshore wind, of which larger, more efficient seawater electrolysis plants are
there is potential for at least 9GW in waters around available, the green option is likely to move ahead.
the islands, and probably much more. The demand Another opportunity for ORION is CO2 management,
for platform electrification could accelerate the possibly using the soon-to-be empty Brent pipeline
development of these offshore resources, with potential and depleted fields to transport and store industrial
further momentum lent by hydrogen production on emissions pumped from mainland UK.
the islands, as well as demand from the UK grid. Near-
shore and floating opportunities will be offered through Unique characteristics
forthcoming wind licensing rounds, as the government Wind energy is particularly effective in Shetland,
intends to expand on the present 5.6GW of consented with load factors the highest in the world – 52% at
capacity. Indeed, Scotland intends expects to reach the islands’ existing 4MW Burradale wind farm. This
11GW installed by 2030, up from the 1GW in operation load factor would be even higher offshore Shetland,
now. The situation has been compared to the start of which should make power especially cheap, giving the
the North Sea oil boom in the 1970s and could line-up islands a significant cost advantage in green hydrogen
2 2 | wireline | Spring 2021You can also read
