Oil & Gas UK’s 2018 Decommissioning Insight Report, which provides a fresh insight of the market over the next ten years (2018–27), reveals that decommissioning expenditure is expected to run at about £1.5 billion per annum over the next decade, 20 per cent lower than forecast in 2017.

The report shows:

  • The UK is expected to spend £15.3 billion on decommissioning over the next decade
  • The rate of decommissioning expenditure is forecast to stabilise at around £1.5 billion per year, this is about 20% lower than forecast in 2017
  • 1465 wells are expected to be decommissioned over the next ten years, representing 1/5th of total UKCS well stock
  • Over 950,000 tonnes of topsides are scheduled for removal across the North Sea – of which just over 605,000 tonnes will be from the UKCS
  • UK is the largest market for decommissioning spend over next decade, representing one-third of expenditure across the top 12 markets [Wood Mackenzie];
  • Decommissioning on the UKCS offers first-mover advantage, which the UK’s supply chain can capitalise on, with the correct help

Oil & Gas UK Decommissioning team: Joe Leask, Sam George, Richard Heard

Unveiling the report findings to industry experts at the conference in St Andrews today, Joe Leask, Decommissioning Manager Oil & Gas UK and author of the report, said:

“As the decommissioning sector matures, we’re becoming more efficient and our growing expertise is enabling us to plan projects more cost-effectively. Our knowledge is continuously expanding and contributing to competitive decommissioning delivery. Data from projects to date reveals the scale of progress achieved in recent years. Forecast unit well decommissioning costs are reducing across all areas of the North Sea, and have fallen by an average of 26%.

“The efficiency improvements we see in decommissioning reflect what is being achieved across the oil and gas lifecycle and attracting fresh investment in the basin, to extend the life of many assets and increase economic recovery.

“The sector’s cost leadership demonstrates we have the capacity and capability to deliver the 35 percent cost reduction target set by the Oil and Gas Authority. Meeting and then beating this target will be key to unlocking the global market, allowing the UK to reinforce its position as world-leading.

“Oil & Gas UK is pleased that these capabilities are recognised by the UK government through its call for evidence in the 2018 Budget. This will, supported by the Scottish Government’s Decommissioning Challenge Fund, help establish the UK as centre for global decommissioning excellence.”

“Our focus now needs to be on identifying the areas we excel in, strengthening the share of our local market and then exporting those skills and capabilities into the global market.”

The report also notes:

Over the next decade

  • The spend over this next decade is almost 20% lower than forecasts made last year would have suggested. Reductions have been driven by improved productivity (including cost reduction, efficiency improvement and deflation) coupled with the movement of activity beyond 2027. This demonstrates that the decommissioning market is maturing and making significant inroads to deliver on its 35% cost reduction target
  • Cumulative expenditure up until 2027 has reduced by £4 billion in comparison with previous estimates
  • Some individual projects have seen the average amount of days spent on well decommissioning halve throughout the lifecycle of a project
  • Forecast costs per tonne for the removal of topsides in the central and northern North Sea have fallen by 13%, while the cost of removal per tonne for a substructure in this area has fallen by just over 16%

Notes to Editors:

 

  1. The report can be found on Oil & Gas UK’s website. Infographics for your use can be found here: http://bit.ly/2FHhDTx
  2. Oil & Gas UK’s upstream policy director Mike Tholen, and Joe Leask, Oil & Gas UK’s decommissioning manager, will be available for interview on Tuesday November 27 between 13.00- 13.45 at the conference, following the launch of the 2018 Decommissioning Insight at 11am. To book an interview, please contact Natalie Coupar.

 

Issued by the Communications Team, Oil & Gas UK. Contact Natalie Coupar, Communications Manager on 01224 577343 or 07531 407007/ ncoupar @oilandgasuk.co.uk

Oil & Gas UK is the leading representative organisation for the UK offshore oil and gas industry. Its membership comprises oil and gas producers and contractor companies.

Oil & Gas UK has praised news that Azinor Catalyst has struck oil at Agar-Plantain as promising proof of industry’s competitive approach to exploration activity.

The discovery, located in the Viking Graben area in the Northern North Sea, contains 15-50 million barrels of recoverable resources.

Six exploration wells have been spudded so far in 2018, including Total’s Glendronach discovery and Apache with its discovery at the Garten prospect. Amidst continued concerns about low drilling levels, Oil & Gas UK today reaffirmed the importance of maintaining strong investment conditions.

Commenting, Oil & Gas UK Market Intelligence Manager Ross Dornan said:

“This is further evidence that the improved competitiveness of the industry, alongside the constructive regulatory and fiscal environment, is encouraging a pick-up in investment. This successful exploration project is very welcome and we need more of this to help keep production levels up. Agar-Plantain is a sizeable discovery, in an area with good access to infrastructure.

“This project shows the type of approach required to maximise economic recovery from the basin which still has 10-20 billion barrels of remaining potential. This is a further sign of growing confidence in the basin after the increase in applications to the 31st Licensing Round.

“Harnessing seismic data, new technologies and industry knowledge are all critical to unlocking further success and helping to realise Vision 2035.”

ENDS

An inspirational new book which shines a light on leading women in the UK’s offshore oil and gas industry will be published this week.

Titled “The Oil Industry’s Best Kept Secret: A book full of inspiration and advice”, the project, penned by Oil & Gas UK Operations Optimisation manager Katy Heidenreich, aims to encourage more girls to pursue careers in the critical energy sector.

It includes profile pieces and advice drawn from interviews with high profile women across the sector. Profiled interviews include Dame Judith Hackitt, chemical engineer and leading health and safety expert who most recently led the UK Government’s independent review into building regulations and fire safety following the Grenfell Tower fire, lead geologist at Shell UK Ltd, Caroline Gill, and Baker Hughes, a GE Company, Wireline Field Specialist, Lauren Adams.

Oil & Gas UK today revealed the book will be launched on November 2, where Katy Heidenreich will give her thoughts on its findings.

It will be followed by a panel discussion with Katy Heidenreich. Women’s Business Council chair, Dame Cilla Snowball, Oil & Gas UK Chief Executive Deirdre Michie, Premier Oil North Sea Director Robin Allan and chaired by Axis network chair Jenny Junnier. Dame Cilla Snowball will provide an insight on the work the Women’s Business Council has done to progress the diversity and inclusion agenda.

Speaking in advance of the launch, Katy Heidenreich said:

“The UK’s offshore oil and gas industry is a fast-moving and innovative place, with career opportunities all over the world. At the heart of this project is a shared love for an exciting industry and a desire to celebrate what a great place it is for both men and women to work.

“The process of writing the book was hugely empowering. I’m extremely grateful to the inspirational women who shared a window into their diverse professional lives, showing how they have successfully managed their careers and the fun that they have had along the way.

“From Chief Executives of global organisations to young engineers, it shows that while women represent one in four of the workforce, we already make an incredible impact. I hope that by reading it, more young women will have the confidence and feel encouraged to join our ranks.

“I would like to take this opportunity to thank our key sponsors BP, the Oil & Gas Technology Centre, Shell and BH GE. They have helped not just to make this book a reality but also to ensure the material reaches as many people as possible.”

Praising the book, Oil & Gas UK Chief Executive Deirdre Michie said:

“There are many women leading the way across our sector and this book shines a light on their stories. We know that role models are critical to enabling greater diversity in the workforce.

“By sharing their stories and giving advice, Katy provides us with a great insight into the positive opportunities that are offered by our industry. I’d encourage every girl thinking about her future to give it a read.”

Ends

Notes to Editors

About the author

Katy Heidenreich is Upstream Operations Optimisation Manager at Oil & Gas UK, joining the organisation after spending most of her career in the oil and gas industry working in technical and senior management roles in the UK, Norway and Azerbaijan. Katy has championed equality in the oil and gas industry throughout her career.

Oil & Gas UK has welcomed the UK Government’s commitment to maintain fiscal conditions in recognition of industry’s hard work in improving its competitiveness, following the publication of the government’s 2018 Budget this afternoon.

Chancellor Phillip Hammond announced that the current headline tax rate will continue.  He also stated that the UK government will launch a call for evidence on its plans to make Scotland a global hub for decommissioning.

It comes after Oil & Gas UK recently revealed that 11 projects have been announced by companies this year – more than the last three years combined, with more expected in the coming months.

Speaking in response to the Budget, Oil & Gas UK Chief Executive Deirdre Michie said:

“The Chancellor’s commitment to fiscal stability is welcome recognition of the hard work by industry to encourage recovery following one of the most testing downturns in its history.

“With reduced costs, competitive fiscal terms and improved operational performance, the UK Continental Shelf is becoming an attractive investment proposition. These conditions are delivering a tentative recovery, with more projects approved so far this year than in the last three years combined.

“It’s important that this stability is sustained for the longer term, encouraging further investment and much needed new business for the supply chain, which continues to be under pressure.

“Essential for security of supply, supporting hundreds of thousands of highly skilled jobs and contributing billions to the economy, the UK’s offshore oil and gas industry will continue to play a vital role in the economy for many years to come.”

The decommissioning market in the North Sea is forecast to grow steadily and is likely to be worth £1.8 billion per annum on average over the next decade.

Commenting on the call for evidence on decommissioning, Deirdre Michie added;

“As decommissioning activity is predicted to grow, the UK supply chain has a major opportunity to develop world-class decommissioning capabilities. We look forward to informing this exercise with our expertise and ensuring that we can maximise opportunities in decommissioning while continuing our focus on maximising economic recovery.”

ENDS

Notes to Editors 

Issued by the Communications Team, Oil & Gas UK. Contact Communications Manager Natalie Coupar on 01224  577343/ 07531407007/ ncoupar@oilandgasuk.co.uk

Oil & Gas UK is the leading representative organisation for the UK offshore oil and gas industry. Its membership comprises oil and gas producers and contractor companies.

The UK’s offshore oil and gas industry continued to see improvement across a broad range of health and safety indicators last year, according to a key insight into the health and safety landscape published by Oil & Gas UK today (Wednesday 3 October).

Findings from the leading representative body’s Health and Safety Report 2018 showed a continued downward trend in reportable incidents, with 255 such incidents reported to the health and safety regulator in 2017 – 67 percent lower than in 2000-01. This is the lowest on record.

With no work-related fatalities recorded in 2017, the non-fatal injury rate also continued to decrease across the UKCS.

The report gives an overview of the offshore oil and gas industry’s performance in health and safety in 2017 and a summary of activities undertaken by industry groups to protect people working in the sector in 2018.

Despite the continued improvements in the areas of process safety, personal safety, aviation and health, Oil & Gas UK today said there was no room for complacency.

The report notes that major hydrocarbon releases, whilst reduced since 2012, are plateauing at around two per year in the last few years. Industry efforts to drive concerted action in this area are being steered by Oil & Gas UK in partnership with Step Change in Safety.

Commenting on the report findings, Oil & Gas UK Health and Safety Manager Trevor Stapleton said:

“As a major hazard industry, the UK’s offshore oil and gas sector has a clear duty to protect the health and safety of our people.

“Oil & Gas UK’s Health and Safety 2018 report provides an informed view of health and safety performance in the UK’s offshore oil and gas industry in 2017.  The data shows that while we continue to see improvements across a range of trends, there can be no room for complacency.

“That’s why Oil & Gas UK is co-ordinating industry action to reduce the number of major hydrocarbon releases. In a year where we marked 30 years since Piper Alpha, we’re all too aware of the personal and long-lasting consequences if things go wrong.

“We’ve committed to working with the regulator, industry and, in collaboration with Step Change in Safety, to help steer efforts in the areas of process safety leadership, audit, self-verification and sustainable learning.

“As our industry emerges from a sustained downturn, the health and safety of our people remains a core value and is at the heart of all that we do. “

 

Oil & Gas UK today hosted a seminar dedicated to cyber security, with industry leaders sharing their knowledge and expertise to help equip and protect the industry for the future.

The event, sponsored by ABB, was held at the Aberdeen Exhibition and Conference Centre (AECC), focused on the increasing threat of digital security, exploring how the UK’s oil and gas sector can manage and mitigate risks to prevent a systems breach or major incident.

Clare Dobson, of the Energy Cyber Security Team at the Department of Business, Energy and Industrial Strategy (BEIS) delivered the keynote speech, looking at government’s role in mitigating cyber risks from a regulatory and national security perspective.

Speaking after the event, Oil & Gas UK’s Workforce Engagement and Skills Manager Dr Alix Thom said:

“This fantastic event underlined the importance of understanding the risks of cyber security and how they affect our industry today and in the future.

“Cooperation and sharing information within the industry is crucial to help companies collectively respond to emerging threats. It’s also important to learn from other sectors about how they manage risks and ensure safe and sustainable operations.

 “Our speakers provided invaluable insight to the audience today, helping to deepen our understanding of new and ever-evolving risks to people, assets and businesses brought about by the digital world.”

The speakers also included Ben Dickinson, Cyber Security Consultant at ABB, Detective Constable Richard Scott, Counter Terrorism Security Adviser at Police Scotland, and Ross McKenzie, Partner at Addleshaw Goddard LLP.

Further speakers were Joe Goodlad, Principal Cyber Security Specialist, at ADC (Aberdeen Drilling Consultants), who discussed how cyber audits are particularly critical on offshore drilling rigs to ensure safe operations and minimise any threat to production, safety and the wider environment.

Francis Lobo, Head of Upstream Oil and Gas Engineering at insurance firm, Canopius, and John Duncan, Senior Advisor Emergency Preparedness & Security, at Total E&P, also shared their knowledge and expertise as part of the event, which consisted of three sessions, each followed by a Q&A with panel discussion.

ENDS

North Sea industry leaders today championed the value of the sector at a meeting with the UK Government’s Exchequer Secretary to the Treasury, Robert Jenrick MP.

Oil & Gas UK’s Chief Executive Deirdre Michie hosted a roundtable discussion at the leading representative body’s offices in Aberdeen, attended by a cross-party group of politicians, Oil and Gas Authority Chief Executive Andy Samuel and Oil & Gas UK board members.

 

Speaking after the meeting, Robert Jenrick MP said:

“I was pleased to visit Oil & Gas UK in Aberdeen today to meet with representatives from the industry and local MPs. 

 

“I reaffirmed the Treasury’s commitment to globally highly competitive, stable and predictable taxation for the sector, as first set out in Driving Investment in 2014.”

 

Oil & Gas UK Chief Executive Deirdre Michie added:

 

“It was great to welcome the Minister to Oil & Gas UK today to reaffirm the value of our sector to the UK economy.

 

“We continue to work with governments and the regulator to guarantee the success of our industry for many decades to come. It’s why I’m pleased the Minister again confirmed the government’s commitment to fiscal stability – a critical element of our offering to investors in a globally competitive market.

“Essential for security of energy supply, contributing billions to the economy and supporting hundreds of thousands of jobs, our indigenous oil and gas industry offers a sound investment case to the UK economy. Our challenge now is to underline the potential the UKCS continues to offer investors across the world. This is the path towards unlocking our shared ambition for the future, Vision 2035.”

END

Notes to Editors:

Issued by the Communications Team, Oil & Gas UK. Contact Communications Manager Natalie Coupar 01224 577343 / ncoupar@oilandgasuk.co.uk 

Oil & Gas UK is the leading representative organisation for the UK offshore oil and gas industry. Its membership comprises oil and gas producers and contractor companies.

 

2018 Collaboration Survey Launch

It’s that time of year again! Oil & Gas UK will shortly be launching the 2018 Upstream Supply Chain Collaboration Survey; please keep an eye out for emails with links to the survey as many of you will have been selected to provide input.

This year’s survey is the fourth edition and we are hoping to build on last year’s momentum by getting even more responses that in previous years. Your support is crucial to the success of the survey so please do fill it out if you receive a link.

Over the last three years the supply chain collaboration survey has provided valuable insight that has helped our industry take steps to demonstrate the right behaviours and improve performance. This is then reflected in the results. We want to continue that with this year’s survey and so we need as much feedback as possible.

The survey will be launched on Monday 13th August and will be open until 14th September. We will collate results and then conduct initial interviews with operators and OFS firms, which will feed into the creation of this year’s report to be launched in the first week of December.

We really value your input and look forward to receiving your completed surveys.

Best regards,

Oil & Gas UK

Efficiency Task Force

View 2017 Results

Learn more about cultural change

Problem Statement  

To assess potential integrity hazards associated with their assets and take suitable measures to prevent, detect, control and mitigate these, Oil & Gas operators typically use risk-based assessment and inspection strategies. However, their implementation is generally achieved through Excel-based assessments, which have inherent management and usage issues and offer limited visibility of the overall risk across the entire fleet of assets and the different disciplines.

 

Aims

  • Work closely together to develop a modern, web-based environment that facilitates the management of risk-based assessments and inspections for an entire fleet of assets, in line with Repsol Sinopec’s RBI methodology.
  • Improve consistency and objectivity through embedded workflows for determining the likelihood of failure for different threats.
  • Increase visibility of risk across assets and disciplines, through enhanced dashboards and reporting.

Method

  • By combining Repsol Sinopec’s asset technical knowledge with Atkins’ modern software development capabilities and innovative vision, the team developed ARIA, a web environment that enables management of risk-based assessments and planning of inspections across all assets and relevant disciplines. Repsol Sinopec and Atkins worked closely throughout the development, identifying the key features for a modern RBI tool. The Atkins software team developed the application in line with these requirements. Using an iterative approach, the software was continuously reviewed and improved from user feedback, ensuring the final product is easy-to-use, efficient and works as expected. To improve consistency, minimise data loss and avoid operational impact, the existing RBIs were transferred to ARIA and rationalised using an automated tool.

Impact 

The development of ARIA provided significant benefits for improving the management of risk-based assessments, understanding the risks associated with all assets better and identifying inspection requirements. These include:

  • Providing a central hub for risk-based assessments for multiple disciplines
  • Developed in line with the latest RBI methodology, ensuring alignment and compliance across all assessments.
  • Improved consistency and enabled an objective assessment of risk by developing guided workflows for determining likelihood of failure for each applicable threat, in line with industry standards and best practices. Input data transferred for over 2,300 assessments for Pressure Systems was rationalised into predefined lists to enable further consistency and facilitate reporting and analysis (e.g.: 760 ways to refer to 13 materials).
  • Better visibility and understanding of risks across the entire fleet of assets through enhanced dashboards, filtering and reporting.
  • Clear understanding of inspection requirements and improved inspection planning for all assets.
  • Facilitating peer reviews and allowing approved inspection overrides to be used.
  • Efficient, robust and flexible application, that is intuitive and easy-to-use.
  • Proven success for bespoke software development.

Added value

  • Alignment
  • Compliance
  • Consistency
  • Visibility
  • Efficient
  • Robust
  • User-friendly
  • Modern

Total Savings Anticipated

£0.5m / asset

 

Aims

  • To provide a summary of some of the initiatives Shell has been involved either as a participant or leading with other O&G operators and our key suppliers.

Initative overview

  • In the last 5 years, the Logistics Fit for Future (FFF) journey to date has involved a re-thinking of the way in which we work internally and how we collaborate externally with the rest of the supply chain.The total Shell Logistics cost has decreased by a factor 2 thanks to the following initiatives:
    • Internal: review fit for purpose specification for vessels, aggregate demand into integrated planning for Projects, Wells and Production helping to improve Logistics asset utilization
    • External: sharing agreements in place for Marine (ERRVs and PSVs), Aviation fixed wing and Warehousing with other O&G operators.
    • Contracting: develop further output based contracting with fair risk allocation and performance incentive scheme.

Impact/Discussion points 

  • The challenge is to bring collaboration across the industry to the next level under the banner of ETF Logistics. The following initiatives will be pursued among others:
  • UKCS PSV marine pooling
  • Program to reduce Logistics GHG emissions including LNG bunkering
  • Technology – Digital supply chain – now starting to replicate best practices from other Shell operating units and implement in UK. It will include Track and Trace and End to End Supply Chain Visibility.
  • Systematic value/waste mapping to instil a culture of continuous improvement and holistic thinking across the supply chain

Total savings achieved

> 50 mln USD

Focus areas Equinor Logistics in the UKI

-Track & Trace project – with ASCO – retail model into oil and gas

-Implementation of WELS – logistics IT tool

-Continuous improvement of the tool in collaboration with Equinor corporate

-Evaluation of additional tools/technology

-Implementation of Lean

-Culture of continuous improvement

-Performance / dashboard – short and long term

-Flow efficiency rather than resource efficiency

-Marine sharing

-Vessel sharing

-Coordination of vessels

-«Green» technology

-Aviation sharing

-Helicopter/Fixed wing

-Vantage enhanced check-in

Improved access to seismic data, a focus on innovation and a recasting of diverse businesses on the UK Continental Shelf all bode well for the 31st Licensing Round, Oil & Gas UK said today.

The Oil and Gas Authority today formally opened the latest licensing round, which focuses on the frontier and underexplored regions in the UK Continental Shelf.  The Licensing Round will close on 7 November 2018 with companies expected to find out if their bid is successful in the first half of 2019.

123 licenses were awarded for 229 blocks in mature areas of the UKCS, to 61 companies in the recent 30th Licensing Round in May. The 31st Licensing Round will benefit from fresh seismic data funded in part by HM Treasury, and will be supported over the longer term by increased transparency of data and samples from the new National Data Repository.

Commenting on the news, Oil & Gas UK’s Upstream Policy Director Mike Tholen said:

“This is an exciting Licensing Round and is a timely reminder of the wealth of untapped potential which lies in the UK Continental Shelf. The announcement represents the culmination of three year’s close collaboration with the Oil and Gas Authority to update the licensing process and open up under explored acreage on the East Shetland Platform, South Western Approaches, and Mid North Sea High.

“With an industry-wide focus on efficiency and innovation, a stable fiscal regime, and a positive response to the 30th Round, industry is fit and ready to usher in a new era of exploration in the North Sea.

“Frontier exploration is however a long game and requires businesses to be confident in future opportunities. Fiscal and regulatory stability remains a prerequisite if we are to realise the benefits of exploration activity which is badly needed to boost production and activity.”

Ends

Notes to Editors

Issued by the Communications Team, Oil & Gas UK. Contact Communications Manager Natalie Coupar on 01224 577250/ ncoupar@oilandgasuk.co.uk

Oil & Gas UK is the leading representative organisation for the UK offshore oil and gas industry. Its membership comprises oil and gas producers and contractor companies.

 

Oil & Gas UK has commended the UK Government for its continued support for industry, with inclusion of Transferable Tax History (TTH) in its draft Finance Bill published today (Friday 6 July 2018).

TTH allows additional investment to be unlocked in the North Sea by enabling more assets to change hands and aids new owners when providing fresh investment to many mature oil and gas fields.

Mike Tholen, Upstream Policy Director Oil & Gas UK, said: “The publication of draft legislation for Transferable Tax History is greatly welcomed by the industry as it’s an additional tool in the deal toolkit, with the potential for bringing new investment to the basin.

“TTH will help increase recovery from existing fields and encourage fresh investment which will both help generate activity for our hard-pressed supply chain. It will also help extend the lives of many mature fields and postpone decommissioning.

“Adopting this measure makes it clear that the Treasury recognises the need for a predictable fiscal regime as the basin matures, which is critical in ensuring it remains competitive.

“We look forward to continuing our work with Government for these measures to be put into law and available for use to industry for deals from 1 November 2018. This in turn will ensure industry continues to provide security of energy supply for the longer term, contributing billions to the economy and supporting hundreds of thousands of high-value jobs.”

Ends

Notes to Editors:

Issued by the Communications Team, Oil & Gas UK. Contact Natalie Coupar, Communications Manager, ncoupar@oilandgasuk.co.uk / 07531407007

Oil & Gas UK is the leading representative organisation for the UK offshore oil and gas industry. Its membership comprises oil and gas producers and contractor companies.

Problem Statement  

The internal inspection of roof pontoons can be challenging due to the requirement for personnel to work in a confined space for lengthy amounts of time.

Aims

  • A large global oil and gas company required a solution to inspect the internal roof pontoons and steel shell of a floating roof tank dedicated to the production of unrefined diesel at a refinery in the UK. Cyberhawk was selected to conduct the inspection using unmanned aerial vehicles (UAVs).

Method

  • Cyberhawk’s two-man team examined the condition of 25 pontoons and the entire internal surface of the tank. The inside of the asset was fully inspected whilst the team remained in a safe position on the outside to fly the UAV.
  • With a lack of GPS signal and different entry points for each pontoon, full manual flying was required from experienced pilots. This also meant flying manually through the tank’s various compartments.

Impact

This type of inspection would usually involve personnel entering the tight roof pontoons of the tank – Cyberhawk’s solution meant that personnel were only required inside the tank for the minimum amount of time.

The traditional method of inspection would also have taken weeks to complete the workscope where as the UAV solution took just five days.

Cyberhawk successfully completed the workscope delivering a high quality inspection report with high resolution images which enabled the client to understand the tank’s condition. The pontoons were found to be in generally good condition throughout with no significant damage or defects. The client reported the project was carried out within budget and reported significant time savings.

Total hours saved

Five days vs weeks

Safety benefits

Minimum time inside for personnel

Problem Statement

Flare inspection can incur significant costs and take months to complete. Aside from the cost of using scaffolding or rope access, a production shutdown is required while the inspection takes place.  These access techniques also mean extended periods of working at height.

Aims

  • A supermajor in West Africa was looking use a new, more efficient method of inspection to examine a number of flares on five live assets.
  • As well as generating cost savings, the client was also looking for an inspection solution which was safer for personnel by reducing the requirement to work at height.

Method

  • A two man team from Cyberhawk were mobilised to the region to complete the inspections
  • Full close visual inspections (CVI) were carried out across all assets
  • Thanks to the use of UAVs, the inspections could take place without the need for a plant shut
    down

Impact

By avoiding a plant shutdown, and inspecting the assets while they were live, the client saved more than $11million.

All five assets were also inspected in less than a week – the alternative methods would have taken months to complete and would also have required a complete shutdown of the facility.

The detailed inspection reports completed by Cyberhawk’s plant inspector and flare experts provided the facility with the info required to fully plan and prepare flare tip replacement and repair work during the next planned turnaround.

Total hours saved

5 days vs weeks

Total savings anticpated

Over $11million

Problem Statement 

Flare inspection can incur significant costs and take months to complete. Aside from the cost of using scaffolding or rope access, a production shutdown is required while the inspection takes place.  These access techniques also mean extended periods of working at height.

Aims 

  • A supermajor in West Africa was looking use a new, more efficient method of inspection to examine a number of flares on five live assets.
  • As well as generating cost savings, the client was also looking for an inspection solution which was safer for personnel by reducing the requirement to work at height.

Method

  • A two man team from Cyberhawk were mobilised to the region to complete the inspections
  • Full close visual inspections (CVI) were carried out across all assets
  • Thanks to the use of UAVs, the inspections could take place without the need for a plant shutdown

Impact

By avoiding a plant shutdown, and inspecting the assets while they were live, the client saved more than $11million.

All five assets were also inspected in less than a week – the alternative methods would have taken months to complete and would also have required a complete shutdown of the facility.

The detailed inspection reports completed by Cyberhawk’s plant inspector and flare experts provided the facility with the info required to fully plan and prepare flare tip replacement and repair work during the next planned turnaround.

Total hours saved

5 days vs weeks

Total savings anticipated 

Over $11million

Plans to extend the life of the UK Continental Shelf and double the supply chain’s share of global markets will be the focus of an industry event in Aberdeen tomorrow (Tuesday 12 June), sponsored by Deloitte.

Vision 2035, developed by Oil & Gas UK in collaboration with the Oil and Gas Authority, outlines the UK offshore oil and industry’s shared ambitions for the future of the sector.

The industry association today revealed a high-profile list of speakers who will address key themes in the Vision.

  • Mike Tholen, Upstream Policy Director, Oil & Gas UK
  • Hedda Felin, UK Managing Director of Equinor
  • John Pearson, Group Managing Director of the Western Hemisphere, Petrofac
  • Nick Clark, Director in Deloitte’s Strategy and Operations consulting practice
  • Victoria Cameron, Future Industry Leaders Programme

Stuart Payne, Director of Human Resources and the Supply Chain at the Oil and Gas Authority, will join the panel discussion.

Speaking ahead of the event, Upstream Policy Director Mike Tholen said:

“Industry is on track to deliver Vision 2035 and now is the time to work harder and faster towards that goal.

“While times remain tough for many, this event is an opportunity to take stock and charter our course towards the delivery of Vision 2035. Our speakers will explore what the vision means to their company and give their understanding of what future opportunities will look like for the next generation.

“The UK’s offshore oil and gas industry is essential for security of energy supply, contributing billions to the economy and supporting hundreds of thousands of high-value jobs for many years to come. Backed by an enduring plan we can add a generation of life to the basin, double our supply chain’s global footprint and continue powering the nation for many years to come.”

Graham Hollis, office senior partner for Deloitte in Aberdeen said:

“The ambition Vision 2035 seeks to deliver is crucial to establishing a new level of focus and direction for the oil and gas sector. Tuesday’s Breakfast will provide a valuable opportunity for the industry to learn more about how the sector is adapting and, in turn, consider the role their organisation might play in helping to revive it.

“The efficiencies and improvements the industry has already made in response to recent challenging conditions are evidence of what can be achieved through fuller collaboration, better use of technology, and a shared understanding of how the sector can continue to function successfully, and should help support attainment of Vision 2035.”

 

ENDS

Problem Statement

OGUK Case Study – methanol optimisation

The use of methanol as a hydrate inhibitor in wells/pipelines is strictly controlled by Ineos for all users of the Forties Pipeline System due to the potential damage that can be caused to catalysts and effluent plant. If an operator causes the overall FPS methanol dosage to exceed the limit of 2m3 / day, it may be subject to a charge of up to £2m. This therefore leads operators to wait until a timeslot for methanol injection is allocated, causing delays in start-up and the subsequent losses for deferred production.

Aims 

Optimise methanol injection volumes required for start-up operations in subsea wells/pipelines to reduce operator contribution to overall FPS methanol injection thus facilitating the swifter approval of methanol waiver permits and reducing  deferred production.

Method

Traditional approaches use steady state analysis to calculate methanol injection volumes. Atkins developed a novel methodology combining OLGA transient simulations, inhibitor tracking and the latest equations of state to optimise the volume of methanol required during start-up operations. This provides a variable methanol injection rate which minimises the hydrate temperature margin along the pipeline.

Impact

The proposed methodology has been used to optimise methanol injection for one of the most challenging and strategically important HPHT gas-condensate subsea well and pipeline systems in the North Sea, resulting in:

  • A 30% reduction in the total methanol injection volume for a cold depressurised start-up when compared with the output of the standard steady state methodology.
  • 60 – 70% reductions in methanol volumes for warm depressurised start-ups (4-9 days after shutdown).
  • Confidence in the effectiveness of the methanol injected.
  • Maximising the length of time needed between tank refills.

Production savings from swifter permit approvals

~ £3m / year

Avoidance of need for high-usage methanol waiver

~ £2m / start-up

 

The Scottish Energy Minister will address a major safety conference taking place in Aberdeen next week – three decades after the Piper Alpha disaster.

Paul Wheelhouse will deliver the keynote speech to open day two of Safety 30 – organised by Oil & Gas UK and the International Regulators’ Forum and taking place on June 5 and 6 at the Aberdeen Exhibition and Conference Centre.

Energy Minister Paul Wheelhouse said:

“I recall vividly the awful images of the Piper Alpha tragedy, and I know how profoundly the loss of life affected the city of Aberdeen and Scotland. The 30th anniversary of this terrible tragedy provides a very important reminder to everyone working in this industry, and in these hostile and dangerous waters, that safety should always be paramount.   Nothing is more important than ensuring the safety of those who work offshore.

“Through continued vigilance, allied to innovation and dedication, we must strive to achieve and sustain new standards of offshore health and safety, aiming to make the UKCS the safest place to work in the global oil and gas industry. We owe that to the families of those who lost loved ones on the Piper Alpha, and to all those who continue to deliver the vital supplies of energy our society often takes for granted.”

Deirdre Michie, Chief Executive of Oil & Gas UK, added:

“Safety 30 is an important conference for our industry coming 30 years after the Piper Alpha disaster that led to the rigorous health and safety legislation governing us today. We look forward to hearing from the Scottish Energy Minister who is very engaged with our sector which puts safety at the heart of all its operations.”

ENDS

 

Notes to Editors:

Media are welcome to attend the conference. To book a place contact Communications Manager Jennifer Phillips on 01224 577279 / jphillips@oilandgasuk.co.uk.

 

Issued by the Communications Team, Oil & Gas UK. Contact 01224 577279 / jphillips@oilandgasuk.co.uk.

Oil & Gas UK is the leading representative organisation for the UK offshore oil and gas industry. Its membership comprises oil and gas producers and contractor companies.

 

Problem Statement

The normally unmanned Erskine platform has a max POB of just 12 people, which makes labour intensive well interventions a major undertaking.

There has been three years of unsuccessful attempts to remove scale and replace key down-hole equipment.

Needed to ensure that the 2017 campaign was a success.

Aims

  • A 55-day well services campaign on the Chevron-operated Erskine platform to be delivered safely, on time and on budget.
  • The campaign involved work on three wells, including the change-out of a wireline retrievable safety valve and two lower manual master valve stem seals and bonnets.

Method

  • New approach using tools trailed onshore, but new to the market and not used downhole before, including an expandable mill, allowing intervention crew to pass through narrow restriction at surface then out into the tubing where it was opened up.

    Completed downhole well-data logging, followed by the setting of plugs in the well-necessary barriers to allow the change-out of the lower manual master valve and the replacement of a Pascon valve, which is used to control pressure to the safety valve.

    Other work included replacement of storm choke valves, downhole safety valves controlled by pressure, and well-data logging.

Impact

The well services campaign is the culmination of years of work and involved
the dedication of the Erskine team, Chevron well services, Base Business
Operations Support and business partners Altus, Welltec, GE Vetco and
Halliburton.

The well services work required Erskine to be maned for 55 days, split into a
14 and 41-day campaign from April to June 2017. With limited facilities on
the platform and a max of 12 people on board, including 5 emergency
response team core crew, this only allowed for 7 other crew to carry out the
complicated and labour intensive work.

Specialised equipment meant deck space was limited to team work and
collaboration was key. Working with wireline companies chevron changed
how teams worked in order to carry out 24 hour working, saving over 20
days offshore occupation and production losses.

The work was carried out safely and successfully, eliminating three significant
well anomalies, allowing the wells to return to full integrity. Completing all
three work scopes incident free was a great achievement by the whole team.
The first work scope was challenging, with the alternatives for reinstating the
down hole safety valve would have resulted in either a costly coiled tubing
campaign or a completion workover, which would have cost missions of pounds
to restore the integrity of the well.

Total hours saved – 21.75 working days

Total savings anticipated – £4.7M

Growing expertise and cost leadership help deliver stabilisation in decommissioning market

Oil & Gas UK’s 2018 Decommissioning Insight Report, which provides a fresh insight of the market over the next ten years (2018–27), reveals that decommissioning expenditure is expected to run at about £1.5 billion per annum over the next decade, 20 per cent lower than forecast in 2017.

The report shows:

  • The UK is expected to spend £15.3 billion on decommissioning over the next decade
  • The rate of decommissioning expenditure is forecast to stabilise at around £1.5 billion per year, this is about 20% lower than forecast in 2017
  • 1465 wells are expected to be decommissioned over the next ten years, representing 1/5th of total UKCS well stock
  • Over 950,000 tonnes of topsides are scheduled for removal across the North Sea – of which just over 605,000 tonnes will be from the UKCS
  • UK is the largest market for decommissioning spend over next decade, representing one-third of expenditure across the top 12 markets [Wood Mackenzie];
  • Decommissioning on the UKCS offers first-mover advantage, which the UK’s supply chain can capitalise on, with the correct help

Oil & Gas UK Decommissioning team: Joe Leask, Sam George, Richard Heard

Unveiling the report findings to industry experts at the conference in St Andrews today, Joe Leask, Decommissioning Manager Oil & Gas UK and author of the report, said:

“As the decommissioning sector matures, we’re becoming more efficient and our growing expertise is enabling us to plan projects more cost-effectively. Our knowledge is continuously expanding and contributing to competitive decommissioning delivery. Data from projects to date reveals the scale of progress achieved in recent years. Forecast unit well decommissioning costs are reducing across all areas of the North Sea, and have fallen by an average of 26%.

“The efficiency improvements we see in decommissioning reflect what is being achieved across the oil and gas lifecycle and attracting fresh investment in the basin, to extend the life of many assets and increase economic recovery.

“The sector’s cost leadership demonstrates we have the capacity and capability to deliver the 35 percent cost reduction target set by the Oil and Gas Authority. Meeting and then beating this target will be key to unlocking the global market, allowing the UK to reinforce its position as world-leading.

“Oil & Gas UK is pleased that these capabilities are recognised by the UK government through its call for evidence in the 2018 Budget. This will, supported by the Scottish Government’s Decommissioning Challenge Fund, help establish the UK as centre for global decommissioning excellence.”

“Our focus now needs to be on identifying the areas we excel in, strengthening the share of our local market and then exporting those skills and capabilities into the global market.”

The report also notes:

Over the next decade

  • The spend over this next decade is almost 20% lower than forecasts made last year would have suggested. Reductions have been driven by improved productivity (including cost reduction, efficiency improvement and deflation) coupled with the movement of activity beyond 2027. This demonstrates that the decommissioning market is maturing and making significant inroads to deliver on its 35% cost reduction target
  • Cumulative expenditure up until 2027 has reduced by £4 billion in comparison with previous estimates
  • Some individual projects have seen the average amount of days spent on well decommissioning halve throughout the lifecycle of a project
  • Forecast costs per tonne for the removal of topsides in the central and northern North Sea have fallen by 13%, while the cost of removal per tonne for a substructure in this area has fallen by just over 16%

Notes to Editors:

 

  1. The report can be found on Oil & Gas UK’s website. Infographics for your use can be found here: http://bit.ly/2FHhDTx
  2. Oil & Gas UK’s upstream policy director Mike Tholen, and Joe Leask, Oil & Gas UK’s decommissioning manager, will be available for interview on Tuesday November 27 between 13.00- 13.45 at the conference, following the launch of the 2018 Decommissioning Insight at 11am. To book an interview, please contact Natalie Coupar.

 

Issued by the Communications Team, Oil & Gas UK. Contact Natalie Coupar, Communications Manager on 01224 577343 or 07531 407007/ ncoupar @oilandgasuk.co.uk

Oil & Gas UK is the leading representative organisation for the UK offshore oil and gas industry. Its membership comprises oil and gas producers and contractor companies.

Azinor Catalyst well success promising proof of industry approach

Oil & Gas UK has praised news that Azinor Catalyst has struck oil at Agar-Plantain as promising proof of industry’s competitive approach to exploration activity.

The discovery, located in the Viking Graben area in the Northern North Sea, contains 15-50 million barrels of recoverable resources.

Six exploration wells have been spudded so far in 2018, including Total’s Glendronach discovery and Apache with its discovery at the Garten prospect. Amidst continued concerns about low drilling levels, Oil & Gas UK today reaffirmed the importance of maintaining strong investment conditions.

Commenting, Oil & Gas UK Market Intelligence Manager Ross Dornan said:

“This is further evidence that the improved competitiveness of the industry, alongside the constructive regulatory and fiscal environment, is encouraging a pick-up in investment. This successful exploration project is very welcome and we need more of this to help keep production levels up. Agar-Plantain is a sizeable discovery, in an area with good access to infrastructure.

“This project shows the type of approach required to maximise economic recovery from the basin which still has 10-20 billion barrels of remaining potential. This is a further sign of growing confidence in the basin after the increase in applications to the 31st Licensing Round.

“Harnessing seismic data, new technologies and industry knowledge are all critical to unlocking further success and helping to realise Vision 2035.”

ENDS

New book set to ignite girls’ energy ambitions

An inspirational new book which shines a light on leading women in the UK’s offshore oil and gas industry will be published this week.

Titled “The Oil Industry’s Best Kept Secret: A book full of inspiration and advice”, the project, penned by Oil & Gas UK Operations Optimisation manager Katy Heidenreich, aims to encourage more girls to pursue careers in the critical energy sector.

It includes profile pieces and advice drawn from interviews with high profile women across the sector. Profiled interviews include Dame Judith Hackitt, chemical engineer and leading health and safety expert who most recently led the UK Government’s independent review into building regulations and fire safety following the Grenfell Tower fire, lead geologist at Shell UK Ltd, Caroline Gill, and Baker Hughes, a GE Company, Wireline Field Specialist, Lauren Adams.

Oil & Gas UK today revealed the book will be launched on November 2, where Katy Heidenreich will give her thoughts on its findings.

It will be followed by a panel discussion with Katy Heidenreich. Women’s Business Council chair, Dame Cilla Snowball, Oil & Gas UK Chief Executive Deirdre Michie, Premier Oil North Sea Director Robin Allan and chaired by Axis network chair Jenny Junnier. Dame Cilla Snowball will provide an insight on the work the Women’s Business Council has done to progress the diversity and inclusion agenda.

Speaking in advance of the launch, Katy Heidenreich said:

“The UK’s offshore oil and gas industry is a fast-moving and innovative place, with career opportunities all over the world. At the heart of this project is a shared love for an exciting industry and a desire to celebrate what a great place it is for both men and women to work.

“The process of writing the book was hugely empowering. I’m extremely grateful to the inspirational women who shared a window into their diverse professional lives, showing how they have successfully managed their careers and the fun that they have had along the way.

“From Chief Executives of global organisations to young engineers, it shows that while women represent one in four of the workforce, we already make an incredible impact. I hope that by reading it, more young women will have the confidence and feel encouraged to join our ranks.

“I would like to take this opportunity to thank our key sponsors BP, the Oil & Gas Technology Centre, Shell and BH GE. They have helped not just to make this book a reality but also to ensure the material reaches as many people as possible.”

Praising the book, Oil & Gas UK Chief Executive Deirdre Michie said:

“There are many women leading the way across our sector and this book shines a light on their stories. We know that role models are critical to enabling greater diversity in the workforce.

“By sharing their stories and giving advice, Katy provides us with a great insight into the positive opportunities that are offered by our industry. I’d encourage every girl thinking about her future to give it a read.”

Ends

Notes to Editors

About the author

Katy Heidenreich is Upstream Operations Optimisation Manager at Oil & Gas UK, joining the organisation after spending most of her career in the oil and gas industry working in technical and senior management roles in the UK, Norway and Azerbaijan. Katy has championed equality in the oil and gas industry throughout her career.

Commitment to maintaining fiscal conditions welcomed by industry

Oil & Gas UK has welcomed the UK Government’s commitment to maintain fiscal conditions in recognition of industry’s hard work in improving its competitiveness, following the publication of the government’s 2018 Budget this afternoon.

Chancellor Phillip Hammond announced that the current headline tax rate will continue.  He also stated that the UK government will launch a call for evidence on its plans to make Scotland a global hub for decommissioning.

It comes after Oil & Gas UK recently revealed that 11 projects have been announced by companies this year – more than the last three years combined, with more expected in the coming months.

Speaking in response to the Budget, Oil & Gas UK Chief Executive Deirdre Michie said:

“The Chancellor’s commitment to fiscal stability is welcome recognition of the hard work by industry to encourage recovery following one of the most testing downturns in its history.

“With reduced costs, competitive fiscal terms and improved operational performance, the UK Continental Shelf is becoming an attractive investment proposition. These conditions are delivering a tentative recovery, with more projects approved so far this year than in the last three years combined.

“It’s important that this stability is sustained for the longer term, encouraging further investment and much needed new business for the supply chain, which continues to be under pressure.

“Essential for security of supply, supporting hundreds of thousands of highly skilled jobs and contributing billions to the economy, the UK’s offshore oil and gas industry will continue to play a vital role in the economy for many years to come.”

The decommissioning market in the North Sea is forecast to grow steadily and is likely to be worth £1.8 billion per annum on average over the next decade.

Commenting on the call for evidence on decommissioning, Deirdre Michie added;

“As decommissioning activity is predicted to grow, the UK supply chain has a major opportunity to develop world-class decommissioning capabilities. We look forward to informing this exercise with our expertise and ensuring that we can maximise opportunities in decommissioning while continuing our focus on maximising economic recovery.”

ENDS

Notes to Editors 

Issued by the Communications Team, Oil & Gas UK. Contact Communications Manager Natalie Coupar on 01224  577343/ 07531407007/ ncoupar@oilandgasuk.co.uk

Oil & Gas UK is the leading representative organisation for the UK offshore oil and gas industry. Its membership comprises oil and gas producers and contractor companies.

No room for complacency despite industry health and safety improvements

The UK’s offshore oil and gas industry continued to see improvement across a broad range of health and safety indicators last year, according to a key insight into the health and safety landscape published by Oil & Gas UK today (Wednesday 3 October).

Findings from the leading representative body’s Health and Safety Report 2018 showed a continued downward trend in reportable incidents, with 255 such incidents reported to the health and safety regulator in 2017 – 67 percent lower than in 2000-01. This is the lowest on record.

With no work-related fatalities recorded in 2017, the non-fatal injury rate also continued to decrease across the UKCS.

The report gives an overview of the offshore oil and gas industry’s performance in health and safety in 2017 and a summary of activities undertaken by industry groups to protect people working in the sector in 2018.

Despite the continued improvements in the areas of process safety, personal safety, aviation and health, Oil & Gas UK today said there was no room for complacency.

The report notes that major hydrocarbon releases, whilst reduced since 2012, are plateauing at around two per year in the last few years. Industry efforts to drive concerted action in this area are being steered by Oil & Gas UK in partnership with Step Change in Safety.

Commenting on the report findings, Oil & Gas UK Health and Safety Manager Trevor Stapleton said:

“As a major hazard industry, the UK’s offshore oil and gas sector has a clear duty to protect the health and safety of our people.

“Oil & Gas UK’s Health and Safety 2018 report provides an informed view of health and safety performance in the UK’s offshore oil and gas industry in 2017.  The data shows that while we continue to see improvements across a range of trends, there can be no room for complacency.

“That’s why Oil & Gas UK is co-ordinating industry action to reduce the number of major hydrocarbon releases. In a year where we marked 30 years since Piper Alpha, we’re all too aware of the personal and long-lasting consequences if things go wrong.

“We’ve committed to working with the regulator, industry and, in collaboration with Step Change in Safety, to help steer efforts in the areas of process safety leadership, audit, self-verification and sustainable learning.

“As our industry emerges from a sustained downturn, the health and safety of our people remains a core value and is at the heart of all that we do. “

 

Cyber security event underlines importance of understanding emerging risks

Oil & Gas UK today hosted a seminar dedicated to cyber security, with industry leaders sharing their knowledge and expertise to help equip and protect the industry for the future.

The event, sponsored by ABB, was held at the Aberdeen Exhibition and Conference Centre (AECC), focused on the increasing threat of digital security, exploring how the UK’s oil and gas sector can manage and mitigate risks to prevent a systems breach or major incident.

Clare Dobson, of the Energy Cyber Security Team at the Department of Business, Energy and Industrial Strategy (BEIS) delivered the keynote speech, looking at government’s role in mitigating cyber risks from a regulatory and national security perspective.

Speaking after the event, Oil & Gas UK’s Workforce Engagement and Skills Manager Dr Alix Thom said:

“This fantastic event underlined the importance of understanding the risks of cyber security and how they affect our industry today and in the future.

“Cooperation and sharing information within the industry is crucial to help companies collectively respond to emerging threats. It’s also important to learn from other sectors about how they manage risks and ensure safe and sustainable operations.

 “Our speakers provided invaluable insight to the audience today, helping to deepen our understanding of new and ever-evolving risks to people, assets and businesses brought about by the digital world.”

The speakers also included Ben Dickinson, Cyber Security Consultant at ABB, Detective Constable Richard Scott, Counter Terrorism Security Adviser at Police Scotland, and Ross McKenzie, Partner at Addleshaw Goddard LLP.

Further speakers were Joe Goodlad, Principal Cyber Security Specialist, at ADC (Aberdeen Drilling Consultants), who discussed how cyber audits are particularly critical on offshore drilling rigs to ensure safe operations and minimise any threat to production, safety and the wider environment.

Francis Lobo, Head of Upstream Oil and Gas Engineering at insurance firm, Canopius, and John Duncan, Senior Advisor Emergency Preparedness & Security, at Total E&P, also shared their knowledge and expertise as part of the event, which consisted of three sessions, each followed by a Q&A with panel discussion.

ENDS

Government support continues for UK offshore oil and gas industry

North Sea industry leaders today championed the value of the sector at a meeting with the UK Government’s Exchequer Secretary to the Treasury, Robert Jenrick MP.

Oil & Gas UK’s Chief Executive Deirdre Michie hosted a roundtable discussion at the leading representative body’s offices in Aberdeen, attended by a cross-party group of politicians, Oil and Gas Authority Chief Executive Andy Samuel and Oil & Gas UK board members.

 

Speaking after the meeting, Robert Jenrick MP said:

“I was pleased to visit Oil & Gas UK in Aberdeen today to meet with representatives from the industry and local MPs. 

 

“I reaffirmed the Treasury’s commitment to globally highly competitive, stable and predictable taxation for the sector, as first set out in Driving Investment in 2014.”

 

Oil & Gas UK Chief Executive Deirdre Michie added:

 

“It was great to welcome the Minister to Oil & Gas UK today to reaffirm the value of our sector to the UK economy.

 

“We continue to work with governments and the regulator to guarantee the success of our industry for many decades to come. It’s why I’m pleased the Minister again confirmed the government’s commitment to fiscal stability – a critical element of our offering to investors in a globally competitive market.

“Essential for security of energy supply, contributing billions to the economy and supporting hundreds of thousands of jobs, our indigenous oil and gas industry offers a sound investment case to the UK economy. Our challenge now is to underline the potential the UKCS continues to offer investors across the world. This is the path towards unlocking our shared ambition for the future, Vision 2035.”

END

Notes to Editors:

Issued by the Communications Team, Oil & Gas UK. Contact Communications Manager Natalie Coupar 01224 577343 / ncoupar@oilandgasuk.co.uk 

Oil & Gas UK is the leading representative organisation for the UK offshore oil and gas industry. Its membership comprises oil and gas producers and contractor companies.

 

Upstream Supply Chain Collaboration Survey

2018 Collaboration Survey Launch

It’s that time of year again! Oil & Gas UK will shortly be launching the 2018 Upstream Supply Chain Collaboration Survey; please keep an eye out for emails with links to the survey as many of you will have been selected to provide input.

This year’s survey is the fourth edition and we are hoping to build on last year’s momentum by getting even more responses that in previous years. Your support is crucial to the success of the survey so please do fill it out if you receive a link.

Over the last three years the supply chain collaboration survey has provided valuable insight that has helped our industry take steps to demonstrate the right behaviours and improve performance. This is then reflected in the results. We want to continue that with this year’s survey and so we need as much feedback as possible.

The survey will be launched on Monday 13th August and will be open until 14th September. We will collate results and then conduct initial interviews with operators and OFS firms, which will feed into the creation of this year’s report to be launched in the first week of December.

We really value your input and look forward to receiving your completed surveys.

Best regards,

Oil & Gas UK

Efficiency Task Force

View 2017 Results

Learn more about cultural change

New: Atkins and Repsol Sinopec – Improving Management of Risk-Based Assessments and Inspections Using Bespoke Software

Problem Statement  

To assess potential integrity hazards associated with their assets and take suitable measures to prevent, detect, control and mitigate these, Oil & Gas operators typically use risk-based assessment and inspection strategies. However, their implementation is generally achieved through Excel-based assessments, which have inherent management and usage issues and offer limited visibility of the overall risk across the entire fleet of assets and the different disciplines.

 

Aims

  • Work closely together to develop a modern, web-based environment that facilitates the management of risk-based assessments and inspections for an entire fleet of assets, in line with Repsol Sinopec’s RBI methodology.
  • Improve consistency and objectivity through embedded workflows for determining the likelihood of failure for different threats.
  • Increase visibility of risk across assets and disciplines, through enhanced dashboards and reporting.

Method

  • By combining Repsol Sinopec’s asset technical knowledge with Atkins’ modern software development capabilities and innovative vision, the team developed ARIA, a web environment that enables management of risk-based assessments and planning of inspections across all assets and relevant disciplines. Repsol Sinopec and Atkins worked closely throughout the development, identifying the key features for a modern RBI tool. The Atkins software team developed the application in line with these requirements. Using an iterative approach, the software was continuously reviewed and improved from user feedback, ensuring the final product is easy-to-use, efficient and works as expected. To improve consistency, minimise data loss and avoid operational impact, the existing RBIs were transferred to ARIA and rationalised using an automated tool.

Impact 

The development of ARIA provided significant benefits for improving the management of risk-based assessments, understanding the risks associated with all assets better and identifying inspection requirements. These include:

  • Providing a central hub for risk-based assessments for multiple disciplines
  • Developed in line with the latest RBI methodology, ensuring alignment and compliance across all assessments.
  • Improved consistency and enabled an objective assessment of risk by developing guided workflows for determining likelihood of failure for each applicable threat, in line with industry standards and best practices. Input data transferred for over 2,300 assessments for Pressure Systems was rationalised into predefined lists to enable further consistency and facilitate reporting and analysis (e.g.: 760 ways to refer to 13 materials).
  • Better visibility and understanding of risks across the entire fleet of assets through enhanced dashboards, filtering and reporting.
  • Clear understanding of inspection requirements and improved inspection planning for all assets.
  • Facilitating peer reviews and allowing approved inspection overrides to be used.
  • Efficient, robust and flexible application, that is intuitive and easy-to-use.
  • Proven success for bespoke software development.

Added value

  • Alignment
  • Compliance
  • Consistency
  • Visibility
  • Efficient
  • Robust
  • User-friendly
  • Modern

Total Savings Anticipated

£0.5m / asset

 

New: Shell – Logistics/Material Management optimisation Initiatives

Aims

  • To provide a summary of some of the initiatives Shell has been involved either as a participant or leading with other O&G operators and our key suppliers.

Initative overview

  • In the last 5 years, the Logistics Fit for Future (FFF) journey to date has involved a re-thinking of the way in which we work internally and how we collaborate externally with the rest of the supply chain.The total Shell Logistics cost has decreased by a factor 2 thanks to the following initiatives:
    • Internal: review fit for purpose specification for vessels, aggregate demand into integrated planning for Projects, Wells and Production helping to improve Logistics asset utilization
    • External: sharing agreements in place for Marine (ERRVs and PSVs), Aviation fixed wing and Warehousing with other O&G operators.
    • Contracting: develop further output based contracting with fair risk allocation and performance incentive scheme.

Impact/Discussion points 

  • The challenge is to bring collaboration across the industry to the next level under the banner of ETF Logistics. The following initiatives will be pursued among others:
  • UKCS PSV marine pooling
  • Program to reduce Logistics GHG emissions including LNG bunkering
  • Technology – Digital supply chain – now starting to replicate best practices from other Shell operating units and implement in UK. It will include Track and Trace and End to End Supply Chain Visibility.
  • Systematic value/waste mapping to instil a culture of continuous improvement and holistic thinking across the supply chain

Total savings achieved

> 50 mln USD

Equinor Logistics Initatives

Focus areas Equinor Logistics in the UKI

-Track & Trace project – with ASCO – retail model into oil and gas

-Implementation of WELS – logistics IT tool

-Continuous improvement of the tool in collaboration with Equinor corporate

-Evaluation of additional tools/technology

-Implementation of Lean

-Culture of continuous improvement

-Performance / dashboard – short and long term

-Flow efficiency rather than resource efficiency

-Marine sharing

-Vessel sharing

-Coordination of vessels

-«Green» technology

-Aviation sharing

-Helicopter/Fixed wing

-Vantage enhanced check-in

New era of exploration for North Sea as 31st Licensing Round opens

Improved access to seismic data, a focus on innovation and a recasting of diverse businesses on the UK Continental Shelf all bode well for the 31st Licensing Round, Oil & Gas UK said today.

The Oil and Gas Authority today formally opened the latest licensing round, which focuses on the frontier and underexplored regions in the UK Continental Shelf.  The Licensing Round will close on 7 November 2018 with companies expected to find out if their bid is successful in the first half of 2019.

123 licenses were awarded for 229 blocks in mature areas of the UKCS, to 61 companies in the recent 30th Licensing Round in May. The 31st Licensing Round will benefit from fresh seismic data funded in part by HM Treasury, and will be supported over the longer term by increased transparency of data and samples from the new National Data Repository.

Commenting on the news, Oil & Gas UK’s Upstream Policy Director Mike Tholen said:

“This is an exciting Licensing Round and is a timely reminder of the wealth of untapped potential which lies in the UK Continental Shelf. The announcement represents the culmination of three year’s close collaboration with the Oil and Gas Authority to update the licensing process and open up under explored acreage on the East Shetland Platform, South Western Approaches, and Mid North Sea High.

“With an industry-wide focus on efficiency and innovation, a stable fiscal regime, and a positive response to the 30th Round, industry is fit and ready to usher in a new era of exploration in the North Sea.

“Frontier exploration is however a long game and requires businesses to be confident in future opportunities. Fiscal and regulatory stability remains a prerequisite if we are to realise the benefits of exploration activity which is badly needed to boost production and activity.”

Ends

Notes to Editors

Issued by the Communications Team, Oil & Gas UK. Contact Communications Manager Natalie Coupar on 01224 577250/ ncoupar@oilandgasuk.co.uk

Oil & Gas UK is the leading representative organisation for the UK offshore oil and gas industry. Its membership comprises oil and gas producers and contractor companies.

 

Industry body welcomes Government measures to improve competitiveness

Oil & Gas UK has commended the UK Government for its continued support for industry, with inclusion of Transferable Tax History (TTH) in its draft Finance Bill published today (Friday 6 July 2018).

TTH allows additional investment to be unlocked in the North Sea by enabling more assets to change hands and aids new owners when providing fresh investment to many mature oil and gas fields.

Mike Tholen, Upstream Policy Director Oil & Gas UK, said: “The publication of draft legislation for Transferable Tax History is greatly welcomed by the industry as it’s an additional tool in the deal toolkit, with the potential for bringing new investment to the basin.

“TTH will help increase recovery from existing fields and encourage fresh investment which will both help generate activity for our hard-pressed supply chain. It will also help extend the lives of many mature fields and postpone decommissioning.

“Adopting this measure makes it clear that the Treasury recognises the need for a predictable fiscal regime as the basin matures, which is critical in ensuring it remains competitive.

“We look forward to continuing our work with Government for these measures to be put into law and available for use to industry for deals from 1 November 2018. This in turn will ensure industry continues to provide security of energy supply for the longer term, contributing billions to the economy and supporting hundreds of thousands of high-value jobs.”

Ends

Notes to Editors:

Issued by the Communications Team, Oil & Gas UK. Contact Natalie Coupar, Communications Manager, ncoupar@oilandgasuk.co.uk / 07531407007

Oil & Gas UK is the leading representative organisation for the UK offshore oil and gas industry. Its membership comprises oil and gas producers and contractor companies.

New: Cyberhawk – Internal roof pontoon internal inspection conducted using drones from outside tank

Problem Statement  

The internal inspection of roof pontoons can be challenging due to the requirement for personnel to work in a confined space for lengthy amounts of time.

Aims

  • A large global oil and gas company required a solution to inspect the internal roof pontoons and steel shell of a floating roof tank dedicated to the production of unrefined diesel at a refinery in the UK. Cyberhawk was selected to conduct the inspection using unmanned aerial vehicles (UAVs).

Method

  • Cyberhawk’s two-man team examined the condition of 25 pontoons and the entire internal surface of the tank. The inside of the asset was fully inspected whilst the team remained in a safe position on the outside to fly the UAV.
  • With a lack of GPS signal and different entry points for each pontoon, full manual flying was required from experienced pilots. This also meant flying manually through the tank’s various compartments.

Impact

This type of inspection would usually involve personnel entering the tight roof pontoons of the tank – Cyberhawk’s solution meant that personnel were only required inside the tank for the minimum amount of time.

The traditional method of inspection would also have taken weeks to complete the workscope where as the UAV solution took just five days.

Cyberhawk successfully completed the workscope delivering a high quality inspection report with high resolution images which enabled the client to understand the tank’s condition. The pontoons were found to be in generally good condition throughout with no significant damage or defects. The client reported the project was carried out within budget and reported significant time savings.

Total hours saved

Five days vs weeks

Safety benefits

Minimum time inside for personnel

New: Cyberhawk- Brunei – Drone inspection for manned and unmanned platforms

Problem Statement

Flare inspection can incur significant costs and take months to complete. Aside from the cost of using scaffolding or rope access, a production shutdown is required while the inspection takes place.  These access techniques also mean extended periods of working at height.

Aims

  • A supermajor in West Africa was looking use a new, more efficient method of inspection to examine a number of flares on five live assets.
  • As well as generating cost savings, the client was also looking for an inspection solution which was safer for personnel by reducing the requirement to work at height.

Method

  • A two man team from Cyberhawk were mobilised to the region to complete the inspections
  • Full close visual inspections (CVI) were carried out across all assets
  • Thanks to the use of UAVs, the inspections could take place without the need for a plant shut
    down

Impact

By avoiding a plant shutdown, and inspecting the assets while they were live, the client saved more than $11million.

All five assets were also inspected in less than a week – the alternative methods would have taken months to complete and would also have required a complete shutdown of the facility.

The detailed inspection reports completed by Cyberhawk’s plant inspector and flare experts provided the facility with the info required to fully plan and prepare flare tip replacement and repair work during the next planned turnaround.

Total hours saved

5 days vs weeks

Total savings anticpated

Over $11million

New: Cyberhawk – $11m saving generated through drone flare inspection

Problem Statement 

Flare inspection can incur significant costs and take months to complete. Aside from the cost of using scaffolding or rope access, a production shutdown is required while the inspection takes place.  These access techniques also mean extended periods of working at height.

Aims 

  • A supermajor in West Africa was looking use a new, more efficient method of inspection to examine a number of flares on five live assets.
  • As well as generating cost savings, the client was also looking for an inspection solution which was safer for personnel by reducing the requirement to work at height.

Method

  • A two man team from Cyberhawk were mobilised to the region to complete the inspections
  • Full close visual inspections (CVI) were carried out across all assets
  • Thanks to the use of UAVs, the inspections could take place without the need for a plant shutdown

Impact

By avoiding a plant shutdown, and inspecting the assets while they were live, the client saved more than $11million.

All five assets were also inspected in less than a week – the alternative methods would have taken months to complete and would also have required a complete shutdown of the facility.

The detailed inspection reports completed by Cyberhawk’s plant inspector and flare experts provided the facility with the info required to fully plan and prepare flare tip replacement and repair work during the next planned turnaround.

Total hours saved

5 days vs weeks

Total savings anticipated 

Over $11million

Oil and gas industry charters course to deliver Vision 2035

Plans to extend the life of the UK Continental Shelf and double the supply chain’s share of global markets will be the focus of an industry event in Aberdeen tomorrow (Tuesday 12 June), sponsored by Deloitte.

Vision 2035, developed by Oil & Gas UK in collaboration with the Oil and Gas Authority, outlines the UK offshore oil and industry’s shared ambitions for the future of the sector.

The industry association today revealed a high-profile list of speakers who will address key themes in the Vision.

  • Mike Tholen, Upstream Policy Director, Oil & Gas UK
  • Hedda Felin, UK Managing Director of Equinor
  • John Pearson, Group Managing Director of the Western Hemisphere, Petrofac
  • Nick Clark, Director in Deloitte’s Strategy and Operations consulting practice
  • Victoria Cameron, Future Industry Leaders Programme

Stuart Payne, Director of Human Resources and the Supply Chain at the Oil and Gas Authority, will join the panel discussion.

Speaking ahead of the event, Upstream Policy Director Mike Tholen said:

“Industry is on track to deliver Vision 2035 and now is the time to work harder and faster towards that goal.

“While times remain tough for many, this event is an opportunity to take stock and charter our course towards the delivery of Vision 2035. Our speakers will explore what the vision means to their company and give their understanding of what future opportunities will look like for the next generation.

“The UK’s offshore oil and gas industry is essential for security of energy supply, contributing billions to the economy and supporting hundreds of thousands of high-value jobs for many years to come. Backed by an enduring plan we can add a generation of life to the basin, double our supply chain’s global footprint and continue powering the nation for many years to come.”

Graham Hollis, office senior partner for Deloitte in Aberdeen said:

“The ambition Vision 2035 seeks to deliver is crucial to establishing a new level of focus and direction for the oil and gas sector. Tuesday’s Breakfast will provide a valuable opportunity for the industry to learn more about how the sector is adapting and, in turn, consider the role their organisation might play in helping to revive it.

“The efficiencies and improvements the industry has already made in response to recent challenging conditions are evidence of what can be achieved through fuller collaboration, better use of technology, and a shared understanding of how the sector can continue to function successfully, and should help support attainment of Vision 2035.”

 

ENDS

New: Atkins – Methanol Injection Optimisation Using OLGA Simulation

Problem Statement

OGUK Case Study – methanol optimisation

The use of methanol as a hydrate inhibitor in wells/pipelines is strictly controlled by Ineos for all users of the Forties Pipeline System due to the potential damage that can be caused to catalysts and effluent plant. If an operator causes the overall FPS methanol dosage to exceed the limit of 2m3 / day, it may be subject to a charge of up to £2m. This therefore leads operators to wait until a timeslot for methanol injection is allocated, causing delays in start-up and the subsequent losses for deferred production.

Aims 

Optimise methanol injection volumes required for start-up operations in subsea wells/pipelines to reduce operator contribution to overall FPS methanol injection thus facilitating the swifter approval of methanol waiver permits and reducing  deferred production.

Method

Traditional approaches use steady state analysis to calculate methanol injection volumes. Atkins developed a novel methodology combining OLGA transient simulations, inhibitor tracking and the latest equations of state to optimise the volume of methanol required during start-up operations. This provides a variable methanol injection rate which minimises the hydrate temperature margin along the pipeline.

Impact

The proposed methodology has been used to optimise methanol injection for one of the most challenging and strategically important HPHT gas-condensate subsea well and pipeline systems in the North Sea, resulting in:

  • A 30% reduction in the total methanol injection volume for a cold depressurised start-up when compared with the output of the standard steady state methodology.
  • 60 – 70% reductions in methanol volumes for warm depressurised start-ups (4-9 days after shutdown).
  • Confidence in the effectiveness of the methanol injected.
  • Maximising the length of time needed between tank refills.

Production savings from swifter permit approvals

~ £3m / year

Avoidance of need for high-usage methanol waiver

~ £2m / start-up

 

Scottish Energy Minister at Safety 30

The Scottish Energy Minister will address a major safety conference taking place in Aberdeen next week – three decades after the Piper Alpha disaster.

Paul Wheelhouse will deliver the keynote speech to open day two of Safety 30 – organised by Oil & Gas UK and the International Regulators’ Forum and taking place on June 5 and 6 at the Aberdeen Exhibition and Conference Centre.

Energy Minister Paul Wheelhouse said:

“I recall vividly the awful images of the Piper Alpha tragedy, and I know how profoundly the loss of life affected the city of Aberdeen and Scotland. The 30th anniversary of this terrible tragedy provides a very important reminder to everyone working in this industry, and in these hostile and dangerous waters, that safety should always be paramount.   Nothing is more important than ensuring the safety of those who work offshore.

“Through continued vigilance, allied to innovation and dedication, we must strive to achieve and sustain new standards of offshore health and safety, aiming to make the UKCS the safest place to work in the global oil and gas industry. We owe that to the families of those who lost loved ones on the Piper Alpha, and to all those who continue to deliver the vital supplies of energy our society often takes for granted.”

Deirdre Michie, Chief Executive of Oil & Gas UK, added:

“Safety 30 is an important conference for our industry coming 30 years after the Piper Alpha disaster that led to the rigorous health and safety legislation governing us today. We look forward to hearing from the Scottish Energy Minister who is very engaged with our sector which puts safety at the heart of all its operations.”

ENDS

 

Notes to Editors:

Media are welcome to attend the conference. To book a place contact Communications Manager Jennifer Phillips on 01224 577279 / jphillips@oilandgasuk.co.uk.

 

Issued by the Communications Team, Oil & Gas UK. Contact 01224 577279 / jphillips@oilandgasuk.co.uk.

Oil & Gas UK is the leading representative organisation for the UK offshore oil and gas industry. Its membership comprises oil and gas producers and contractor companies.

New: Chevron – Erskine Well Intervention campaign 2017

 

Problem Statement

The normally unmanned Erskine platform has a max POB of just 12 people, which makes labour intensive well interventions a major undertaking.

There has been three years of unsuccessful attempts to remove scale and replace key down-hole equipment.

Needed to ensure that the 2017 campaign was a success.

Aims

  • A 55-day well services campaign on the Chevron-operated Erskine platform to be delivered safely, on time and on budget.
  • The campaign involved work on three wells, including the change-out of a wireline retrievable safety valve and two lower manual master valve stem seals and bonnets.

Method

  • New approach using tools trailed onshore, but new to the market and not used downhole before, including an expandable mill, allowing intervention crew to pass through narrow restriction at surface then out into the tubing where it was opened up.

    Completed downhole well-data logging, followed by the setting of plugs in the well-necessary barriers to allow the change-out of the lower manual master valve and the replacement of a Pascon valve, which is used to control pressure to the safety valve.

    Other work included replacement of storm choke valves, downhole safety valves controlled by pressure, and well-data logging.

Impact

The well services campaign is the culmination of years of work and involved
the dedication of the Erskine team, Chevron well services, Base Business
Operations Support and business partners Altus, Welltec, GE Vetco and
Halliburton.

The well services work required Erskine to be maned for 55 days, split into a
14 and 41-day campaign from April to June 2017. With limited facilities on
the platform and a max of 12 people on board, including 5 emergency
response team core crew, this only allowed for 7 other crew to carry out the
complicated and labour intensive work.

Specialised equipment meant deck space was limited to team work and
collaboration was key. Working with wireline companies chevron changed
how teams worked in order to carry out 24 hour working, saving over 20
days offshore occupation and production losses.

The work was carried out safely and successfully, eliminating three significant
well anomalies, allowing the wells to return to full integrity. Completing all
three work scopes incident free was a great achievement by the whole team.
The first work scope was challenging, with the alternatives for reinstating the
down hole safety valve would have resulted in either a costly coiled tubing
campaign or a completion workover, which would have cost missions of pounds
to restore the integrity of the well.

Total hours saved – 21.75 working days

Total savings anticipated – £4.7M