TOPICS OF INTEREST
Equinor Signs Altus, Archer for Integrated Wireline Services
The $120 million per year, 5-year contracts will provide well-intervention services to Equinor’s fixed platforms.
Oil and Gas Supply Chain Awards Hit a 16-Year Low
Supply chain companies have seen their profits squeezed since the E&P cost cuts of the previous downturn, and just as the industry could finally hope for better days, the COVID-19 pandemic caused the value of 2020’s awarded contracts to slump to a 16-year low of $446 billion.
ESP Tender Launched for UK Deep Geothermal Project
The closing date for the ESP tender for the UK’s first geothermal power plant is in early February.
Medical Device Engineering Firm Acquires Oil and Gas Test-System Designer
The two companies have collaborated since 2015 on various projects, but COVID-19 brought Velentium and Oasis Testing together for a unique purpose—to quickly ramp up the manufacturing capacity for critical, life-saving ventilators.
Tellurian Targets Summer Construction at Louisiana LNG
Driftwood gets the green light, as demand rebounds and the stars align at last.
Total E&P and ExxonMobil Begin TCP-Qualification Project for Risers
The project will create a foundation for further development of a thermoplastic composite pipe jumper technology for risers in permanent HP/HT subsea applications.
Remote Survey: A New Normal for Oil and Gas
On the normally unmanned Valhall Flank West platform, the survey of a 1-year-old box boom pedestal crane featured auto-testing of the automatic overload protection system. A similar inspection program was performed on two knuckle boom cranes on a FPSO vessel in Skarv.
TechnipFMC Resumes Move Toward Split
The firm has been working to spin off Technip Energies, creating two companies, with Technip Energies focused on engineering and technology and the remaining TechnipFMC focused on providing integrated technology and services.
Department of Energy Extends LNG Export Authorizations Through 2050
The US Department of Energy has extended export terms for seven long-term LNG licenses until 2050. The extension affects projects currently under construction or pending the start of construction.
Eni Starts Up Production from UAE’s Mahani Field 1 Year After Discovery
Production has started on the Mahani field in Concession Area B of the Sharjah Emirate, the first startup from a new discovery onshore Sharjah in 37 years.
Chinese Distributor To Build $380-Million LNG Terminal
China independent distributor Jiasheng Gas Co. is set to build a $380-million LNG storage and receiving facility in east China, as the country opens up to more private participation and investments surge in LNG import terminals.
Keppel Begins Construction on First Jones Act-Compliant Offshore Wind Turbine Installation Vessel
The first offshore wind turbine installation vessel in the US is one of the largest of its kind in the world.
Baker Hughes Launches Remote Inspection Tool
The service company says its engageSubsea Remote platform provides real-time equipment-status information.
Norway OK's Funds for Northern Lights CCS Project
The first phase of the project is set for completion in 2024. As a part of the project, Equinor, Shell, and Total will establish a new joint-venture enterprise. Equinor has awarded two EPC contracts.
Permian Water Disposal Surges to Record High
The last growing market of US land services, water disposal, is set for an all-time high in the Permian.
Wavefront Prequalifies EOR Technology in Malaysia
Malaysia’s national oil and company will employ the technology suite in secondary recovery and well stimulation. The deal follows the service provider’s recent agreements in the Middle East.
Sasol Seeks EPCM Contractor for Mozambique LPG Project
With one of the world’s lowest electrification rates, Mozambique is moving to give its citizens a brighter future. Together with South Africa’s Sasol, the country endeavors to attract global EPCM companies and international financing to create a power generation hub fueled by gas from onshore fields
Rising US Natural Gas Prices During Pandemic Erode LNG Competitiveness
Shale-based associated gas production is behind the phenomenon. When oil prices do not support production, associated natural gas production also stops, with little to no consideration of natural gas prices.
Santos Seals Deal With Mitsubishi for Barossa’s LNG
The agreement takes 80% of Santos’ share of expected gas from Barossa annually for 10 years.
Harnessing Offshore Renewable Energy
This paper’s intent is to provide a basic understanding of offshore renewable energy, including descriptions of wind and marine-hydrokinetic devices, with a focus on the physical and technical issues.
Expansion of Offshore Wind Depends on Development of Floating Wind Turbines
Despite having strong wind resources and promising record-breaking capacity factors, most sites globally are unsuitable for bottom-fixed units. Floating wind will provide part of the solution for countries seeking to decarbonize their electricity.
Offshore Hydrogen Production Enables Far Offshore Wind Development
Wind energy sources located offshore present challenges in transporting large amounts of energy. Energy transport through hydrogen molecules may be a solution. The PosHYdon project is intended to build experience with offshore H2 production and test power-to-gas technologies and integrated systems.
The Transfer of Oil and Gas Facilities Skills to Offshore Wind Energy
Offshore wind energy projects provide appealing options for the application of the skills and knowledge of practitioners involved in the design and fabrication of oil and gas facilities, especially those with offshore experience.
Rystad Sees Global E&P Players Investing $380 Billion in 2021, Says About 20% Is at Risk
Of the total $380 billion of projected investments, about 60% ($234 billion) is likely to come from producing assets, which have two main spending channels: facility and well capital expenditures.
Pragma To Begin P&A Field Trials of Additive-Manufactured Bridge Plug
Final lab testing has been completed and field trials of the ultrahigh expansion bridge plug will begin by the end of this year.
Wood and Cognite Form AI-Solutions Partnership
The AI partnership combines Wood’s optimization platforms with Cognite’s Data Fusion product to develop solutions for the energy transition and free up data from fragmented and legacy systems.
Sempra Reaches FID for LNG Export Facility in Mexico
ECA LNG will connect natural gas supply from Texas and the western US to Mexico and other countries across the Pacific Basin. First production from the project is expected in late 2024.
ChampionX and Modumetal Collaborate To Develop Production Technology
The agreement will introduce rod couplings coated with nanolaminate technology with the goal of improving equipment reliability.
Petrobras Offers 50% Stake in Marlim Cluster
The cluster is the third largest in Brazil and the fourth largest in the Americas, with potential for further development. It is the third offer the company has made over the past five weeks.
Saudi Aramco Aims To Deliver Capital-Effective Petrochemical Projects
Aramco commissioned a top-down and bottom-up assessment of the potential risks associated with delivering major projects in China, the Kingdom of Saudi Arabia, India, and the US Gulf Coast. Its goal is to deliver shareholder value while preserving the capital effectiveness and value of the projects.
ADNOC LNG Signs Vitol and Total to Supply Agreements
The agreements place most of the LNG volumes through Q1 2022 and continue ADNOC’s expansion into new LNG export markets.
ADNOC Completes First Phase of AI Maintenance Project
Phase 1 covers the modeling and monitoring of assets for six ADNOC Group companies. The four phases of the project are expected to be completed by 2022.
Lifetime Revenue vs. Construction Cost—a Metric for Assessing Drillship Retirements
Through the end of October, 38 rigs have been retired this year. Predicting future rig attrition is not an exact science, but certain metrics help identify those rigs.
Staged Development Strategy Benefits Smaller Oil Fields
An ATCE presentation outlined how staged field development can help make smaller oil discoveries commercial alongside existing engineering solutions.
Second Shipment of Modules Ship Out for Mexico FPSO
Modules for the FPSO will travel to Singapore for integration. The FPSO will be located offshore Mexico, with first oil production planned for 2021.
Norway’s Ulstein Debuts Hybrid H2 Design for Vessels
A Norwegian shipping company is eyeing smaller battery energy storage systems to design and develop greener heavy-lift jackups.
Revisiting Oilfield Electrification With Ideas Picked Up at 2020 ATCE
An ATCE session focused on subsea and offshore subsurface applications with much wider implications. The discussion included the electrification of both facilities and subsurface systems, as well as more-extensive deployment of sensing and flow control from the surface to the reservoir.
Tie-In Manifold Installation Completed at Karish Field Offshore Israel
Jumbo Maritime's heavy-lift crane vessel Fairplayer completed the work.
Lufkin Industries Acquires Schlumberger Rod Lift Business
With the acquisition of Schlumberger’s rod lift business, Lufkin gains several products, brands, and key proprietary software.
ADNOC Subsidiary Awards $324 Million in Contracts To Improve Onshore Operations
Two contracts awarded for flowlines and wellheads at ADNOC’s Abu Dhabi oil fields are expected to be completed in 5 years. A third contract to develop a bypass system for its Jebel Dhanna and Fujairah terminals is expected to be completed in 30 months.
Total Charts LNG-Powered Vessels To Reduce Emissions
The charter agreement for the LNG-propulsion vessels is in line with Total’s Climate Ambition and will cut down on several emissions.
Solaris Water-Reuse Complex in New Mexico Begins Operations
The Eddy State Complex adds 300,000 B/D of recycled produced-water treatment capacity in the northern Delaware Basin. The company said it is on track to recycle 25 million bbl of produced water this year.
DNV GL Digital Platform Offers 40 Years of Reliability Data
The data have been collected and analyzed from more than 18,000 equipment units with failure and maintenance records and includes information on subsea fields with more than 2,000 years of operating experience.
UPDATE: Hurricane Zeta Landfall Imminent, Shuts In 67% Oil, 36% Gas Production
Hurricane Zeta is intensifying as it approaches the US Gulf of Mexico coast of southeastern Louisiana, where it is expected to make landfall around 4 p.m. CST today. View a video of Zeta posted by the US Air Reserve Hurricane Hunters.
One Quarter of the Global Floater Fleet Could Be Scrapped as COVID-19 Accelerates Restructuring
The number of units that have been cold stacked since 2016 are in the double digits. Reactivation costs for these rigs range from $40 million to $100 million. Given current rates and contract durations, most of these are unlikely to return to work.
Engie Delays South Texas LNG Supply Deal Over Emissions Concerns
Engie’s delayed supply contract with NextDecade’s Rio Grande LNG project is for 20 years. FID on the project is expected in 2021.
Tropical Storm Zeta Prompts GOM Evacuations and Production Shut-Ins
Evacuations in the GOM began on Monday, but so far nearly 50% of current oil production and 55% of natural gas production in the region is shut-in due to Tropical Storm Zeta.
More Companies and US States Eyeing Slurry-Injection Technology
Primarily used in a few US states, waste-slurry-injection technology could help operators reduce cost, while also potentially reducing their carbon footprint. But the process may still present technical and environmental challenges.
Oil-Production Costs Reach New Lows, Making Deepwater One of the Cheapest Sources of Novel Supply
In an updated projection, Rystad said that a breakeven of only $50/bbl is needed to produce 100 million BOPD in 2025, reflecting the reduction in oil-production costs.
TechnipFMC Joins Breidablikk Development With EPCI contract
The EPCI contract for the Breidablikk development includes provision of flexible jumpers and rigid pipelines as well as pipeline installation work. About 70% of the value creation in the Breidablikk development phase is expected to go to Norwegian companies.
Cyberhawk To Provide Drone Services to Middle East LNG Company
Cyberhawk will provide drone inspection, surveying, data visualization services, and inspection reports.
Siemens Energy To Supply Equipment for Mozambique LNG
The LNG project includes development of offshore gas fields in Mozambique’s Area 1 and a liquefaction plant with a capacity in excess of 12 mtpa. The gas turbines are slated for delivery in 2H 2021 and 1H 2022, and the compressors are expected in 2021.
Savvy Separator Educational Video Series Now Available
The newly launched video series featuring speaker Bob Chin, the creator and editor of the OGF Savvy Separator Series of articles, provides a basic level of understanding of separator design and troubleshooting.
Equinor Awards Wood $75-Million Contract To Support Mariner Field Development
The latest agreement between Wood and Equinor will begin January 2021. The contract follows recent agreements between the two companies for the Breidablikk development in the Norwegian Continental Shelf.
Getting Serious About Transformation: Business Unit Changes Aren’t Enough
Deloitte discusses the “great compression” of the oil and gas industry in which companies’ room to maneuver is restricted. How can the industry avoid a talent gap and stop an organizational challenge from becoming a precarious business problem?
DNV GL and Aker BP Complete Pilot Project for Remote Inspections of Cranes
Akers BP said it will use lessons learned from the pilot and scale the remote-assist concept across its assets.
UPDATE: Operators Restore GOM Production After Hurricane Delta
Forty-four percent of oil production and 30% of natural gas production remain shut in as operators return workers to offshore platforms. Production from undamaged facilities are being brought back online once all standard checks are completed. Facilities with damage may take longer to bring back up.
UPDATE: Hurricane Delta Shuts In 92% Oil, 60% Gas Production in GOM
Hurricane Delta leads to shut-ins of 92% oil and 60% gas production in GOM as landfall is expected today.
Sandvik To Sell Exploration Business to M Group Subsidiary
The deal includes Sandvik’s exploration rigs, consumables, production stock, and selected trademarks and patents.
Permian Basin Produced-Water-Recycling Facility Up and Running
Breakwater’s produced-water-recycling facility has the flexibility to recycle, store, or dispose of water. It has already recycled nearly 5 million bbl of produced water in the third quarter of 2020.
UPDATE: GOM Evacuations and Shut-Ins Increase Ahead of Hurricane Delta
GOM production shut-ins increased to 80% of the oil and 49% of natural gas. Hurricane Delta weakened from a category 4 storm to a category 2 storm on Wednesday and is expected reach the US Gulf later in the week.
First Topside Modules for Offshore Mexico FPSO Ships Out
The FPSO will be capable of processing 90,000 B/D of crude, 75 million ft3/D, 120,000 B/D of water injection, and a storage capacity of 900,000 bbl of crude oil. First oil is planned for 2021.
Caterpillar Acquires Weir Group’s O&G Division for $405 Million
The acquisition of Weir’s lines of pumps, consumable parts, wellhead, and pressure-control products expands Caterpillar’s well-service capabilities.
GOM Operators Evacuate Offshore Facilities Ahead of Cat 4 Hurricane Delta
Hurricane Delta is expected to hit Mexico’s Yucatan Peninsula on Wednesday and reach the US Gulf later in the week. Twenty-nine percent of the current oil production and 9% of natural gas production in the Gulf of Mexico is shut in.
Schlumberger and Milaha Sign MOU To Provide Stimulation Vessel in Qatar
Schlumberger and a Middle East offshore logistics company signed an agreement to develop a modular stimulation vessel as part of Qatar’s program aimed at localizing the energy sector’s supply chain and creating new investment opportunities.
Bechtel Scores Nova Scotia LNG Project After KBR Bows Out
Bechtel will design the LNG facility with a final contract price proposal by spring 2021. If built, Goldboro LNG would be the largest megaproject in Nova Scotia’s history.
ExxonMobil Reaches FID for Guyana’s Payara Field
ExxonMobil is evaluating additional development opportunities in the Stabroek Block with plans for five drillships operating offshore Guyana by the end of 2020.
Eni To Take Over Chevron’s Role in Indonesia Deepwater Project
The sale of Chevron’s interest in the IDD project is part of its cost-cutting measures.
New LNG Projects – All Dressed Up and No Place To Go
Wood Mackenzie is bullish on the future of global LNG demand. Chief Analyst Simon Flowers outlines the risks ranging from spot prices, project economics, and environmental concerns.
TD Column: Lessons Learnt From 50 Years in the Oil and Gas Business
SPE’s technical director for Production and Facilities, shares some hard lessons learned—and successes—over his 50 years of experience, from being a greenhorn to launching his own business.
Baker Hughes To Supply LNG Compressors to Qatar Petroleum
Baker Hughes scored what it said is among the largest LNG deals it has secured in the past 5 years. The compressors will be installed in Qatar Petroleum’s North Field East LNG trains, boosting Qatar’s total LNG production capacity from 77 mtpa to 110 mtpa.
Digital Evolution in Oil and Gas: Barriers, Successes, and the Future
A recent panel discussion highlighted the industry’s progress in achieving significant digital advances. Barriers remain, however, and the measurement of success is being defined in this evolving technological step change.
Petrobras Cuts E&P Capex, Buzios Oil Field To Account for 70% of E&P Investments
Brazil’s national oil company estimated a reduction of 22 to 38% in capital expenditures in E&P from its 2020–2024 strategic plan and expects to spend $6 billion through 2024 to decommission offshore platforms and wells and underwater gas pipelines.
Equinor Awards Contracts for Breidablikk Development
Equinor awarded multimillion-dollar contracts to Aker Solutions and Wood for work on the oil field in the Norwegian Continental Shelf. It said about 70% of the contracts for the development phase is expected to go to Norwegian companies.
China Planning Railway To Transport Vaca Muerta Production
PowerChina said railway plans are moving forward under Argentina’s current administration and China could provide the financing for the $1.2–1.5 billion project.
Keystone XL Operator TC Energy Will Have a New Top Boss in 2021
One of North America’s biggest midstream companies is getting a new chief in the new year. He will oversee the construction of a 1,200-mile-long pipeline that has been a decade in the making.
US DOE To Fund Sodium-Ion Battery and Methane-Detection Development
Natron Energy aims to scale up domestic manufacturing of sodium-ion batteries , and Bridger Photonics will target the operational efficiency for leak detection and emissions tracking.
US Agencies Advance Research To Increase Gulf of Mexico Production
The research will focus on potential policy changes that could help increase oil and gas production from deepwater infrastructure already in place in the Gulf of Mexico to reduce stranded assets.
Equinor Awards Engineering Study to Aibel for Unmanned North Sea Process Platform
The contract is for Equinor’s unmanned process platform at the Krafla field in the North Sea, with plans for tie-in to an Aker BP host platform in the North of Alvheim area.
Seadrill Seeks Creditors' Forbearance To Avoid Filing Chapter 11
Seadrill is seeking options to restructure its $7.3-billion debt. The offshore driller previously emerged from Chapter 11 bankruptcy protection in 2018.
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ITEMS OF NOTE
07 August 2018
20 July 2018
16 February 2018
18 December 2017
28 November 2017