Women in Engineering Page 20

March - April 2015

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Women in engineering page 20

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AOG_0415_Ads.indd 2 4/2/15 9:50 AM Contents

REGIONAL UPDATES 6 Briefs New discoveries, leases, and development plans. 28 SHIPYARDS 8 New entries EMAS AMC christens its new US$600 million vessel, and more news from China and Korea.

GEOLOGY & GEOPHYSICS 10 Seismic roundup Dolphin mobilizes Sanco Sword off Myanmar, and CGG heads to Vietnam.

FEATURES 12 Rigs continue to idle as Asian drilling activities decline Audrey Raj reports on the global rig market and its effects on the Asian oil and gas industry.

14 Standardization of SENT test method for sour service environments Requirements for testing facture toughness in pipelines is increasing, a standardized SENT test methodology for pipelines in sour service environments is being developed, Dr. Jens Petter Tronskar explains.

18 Recruiting for commissioning of oil and gas developments There can be a tendency to underestimate the challenge of ﬁ nding the right personnel for this critical stage, commissioning, of the project lifecycle, advises Air Energi’s Andy Greenwood and Steve Field.

20 Spotlight – Women in oil and gas engineering 30 AOG discusses the opportunities and challenges confronting women in the energy sector with engineers from Atteris, Premier Oil, Technip, INPEX and EMAS AMC.

GEOFOCUS: AUSTRALIA/NEW ZEALAND 26 Well integrity, from start to nish Weatherford’s Yves Daniel discusses zonal isolation technologies, including an annulus casing packer, made for Australia’s coal seam gas production.

28 Championing Australia’s energy industry James Parsons, Swire Oilﬁ eld Service’s general manager for Australasia shares his view of the current Australian oil and gas market.

30 UWA molds next generation engineers down under The University of Western Australia (UWA) tells us how they have been central to the research and development underpinning the energy sector and education of aspiring professionals in Western Australia.

PRODUCTS & TECHNOLOGY 32 Solutions New tools and software to improve performance, production, and modeling.

CONTRACTS 34 Valmec’s rst Talinga gas contract On the cover

Valmec Services will provide services to Origin Energy’s March - April 2015 ▼ aogdigital.com Meet the ﬁ ve engineers proﬁ led in our GS Talinga Gas Processing Facility. L & GA AON OI ASIA “Women in Oil and Gas Engineering” COMPANY NEWS feature by AOG’s new editor Audrey 35 Activity Raj. Each one comes from a different GE opens Western Australia facility, and more news. background and job function, but all have the same drive to work hard, FACTS & FIGURES have fun, and inspire others. 38 Numerology Women in Read more on page 20. engineeringpage 20 A capsule view of interesting industry statistics. Content is copyright protected and provided for personal use only - not for reproduction or retransmission. aogdigital.com For reprints please contact the Publisher. March · April | AOG 3

003_AOG0415_TOC.indd 3 4/1/15 9:36 PM Editor’s Column Leap of Faith

he global oil and gas industry over the years has witnessed S Iswaran, Minister, Prime Minister’s Office and Second Minister Ta number of cycles and recent changes in the energy scene for Home Affairs and Second Minister for Trade and Industry, have sent shockwaves across the globe. Singapore. While a plunge in oil prices have led to a broad impact on In a meeting at the International Oil and Gas Industry economies and businesses around the world, cheaper oil has Conference and Exhibition, he addressed how strong economic also provided some much-needed relief fundamentals in Asia-Pacific, together to emerging Asian countries. with its rapid population growth and Increasing oil and gas consumption We will remain a key economic development will continue to has made the region a predominant drive energy demand and thus expen- buyer of foreign fuel imports and par- region for offshore diture on exploration and production ticularly influential in the global energy developments with more activities. market. Therefore, we will remain a key This trend is projected to double by drilling activities to region for offshore developments and 2030 in countries like India, China, our emergence of FLNG is expected to Japan, Thailand and Indonesia due to come in Australia and increase with rising energy demand declining or lack of indigenous resources Southeast Asia this year. to drive technological developments and consumption growth. across the region. Singapore for instance is Asia’s major The Asia-Pacific well Infield Systems expects significant petrochemical and refining hub, but it intervention market is capital expenditure growth offshore imports crude oil and natural gas be- India of some 32% over the forthcom- cause it has no hydrocarbon reserves. expected to reach $1.93 ing period compared to the previ- In the wake of the earthquake that struck billion by 2018, up from ous five years, which is likely to be off the coast of Sendai in Japan, the driven by the Dhirubhai and Krishna- Japanese have relied on foreign imports $1.1 billion in 2013. Godavari multi-field developments. to replace nuclear shortfall ever since. Although it is a little hard to predict Between 2000 and 2014 India’s energy what will happen next, it is not preor- consumption doubled pushing the import bill to $120 billion and dained that low oil prices will continue to hurt the industry for this could go up to $230 billion driven by economic growth, greater a long time. industrialization and urbanization, reported The Indian Express. Here to give you these updates and more, AOG will continue While these countries, just to name a few, benefit from cheap to address these market dynamics, business-critical issues and oil and will see a boost in GDP growth, net oil exporters like technologies that impact the oil and gas sector in Asia. Malaysia and Kazakhstan could lose substantial national On this positive note, it gives me with great pleasure to income. welcome you to join me on this journey of knowledge-sharing Malaysia’s energy sector makes up for about 20% of the through this esteemed title also available online. • country’s total GDP. In its move to reduce rising national debt, Malaysia along with Indonesia and India cut oil subsidies that Audrey Raj could possibly save the Malaysian government about $5.97 bil- Editor lion annually. The halving of oil prices has pressured spending cuts across the board. Now with oil producers rethinking exploration budgets, much of the focus will be on lower-cost shallow water or mature oil fields. Therefore, Australia and Southeast Asia could see more drilling activities this year and this could potentially increase well intervention works in the region. The Asia-Pacific well intervention market is expected to reach to $1.93 billion by 2018, up from $1.1 billion in 2013, according to Research and Markets. Despite concerns over the impact on the oil and gas industry of short-term global uncertainties and volatile oil prices the long term outlook for the industry remains positive, said Mr. Content is copyright protected and provided for personal use only - not for reproduction or retransmission. 4 AOG | March · April 2015 For reprints please contact the Publisher. aogdigital.com

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Atlantic Communications LLC 1635 W Alabama Houston, Texas 77006-4101, USA Tel: +1 713 529 1616 [email protected]

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Editor / Associate Publisher Audrey Raj +65 90264084 Regional Briefs [email protected]

Managing Editor Australia • SK INNOVATION SIGNS UP Audrey Leon • AWE SPUDS IRWIN PROSPECT FOR SOUTH CHINA SEA DUO [email protected] AWE spudded the first well in its 2015 CNOOC and SK Innovation Co. entered European Editor three-well onshore Perth basin drill- into two production sharing contracts Elaine Maslin ing program, the Irwin-1, in late March. (PSCs) in the South China Sea. Blocks [email protected] Irwin-1 is located approximately 22.7km 04/20 and 17/03 are located in the Pearl Web Editor east of Dongara. The exploration well River Mouth basin. Block 04/20 cov- Melissa Sustaita was drilled at a measured depth of 115m ers a total area of 5138sq km and Block [email protected] and was drilling ahead in a 17.5in hole 17/03 covers a total area of 7686sq km. Editorial Assistant to a planned depth of 930m in prepara- Both blocks are in 50-100m water depth. Jerry Lee tion for the installation of the 13 3/8in According to the terms of the PSCs, SK Editorial Intern surface casing. AWE says that the well will be the operator of the two blocks. SK Greg App is designed to test the gas potential to will cover 80% of the exploration costs. Design & Layout the east of the Senecio and Waitsia gas Both parties will conduct 2D seismic Bonnie James fields and is targeting the Dongara and data surveys and will drill exploration

ADVERTISING Wagina tight sandstone formations, the wells. Once entering the development REPRESENTATIVES Carynginia Shale and Irwin River Coal phase, CNOOC maintains the right to Measures, as well as deeper convention- participate in up to 60% of the working North America Rhonda Warren al targets in the Kingia and High Cliff interest in any commercial discoveries in Phone: +1 713-285-2200 Sandstones. the blocks. [email protected]

Italy China India Fabio Potesta • QINHUANGDAO 32-6 STARTS UP • OILEX PLANS NEW Tel: (+39) 10 570 4948 China National Offshore Oil Corp. WELLS AT CAMBAY [email protected] (CNOOC) began production at its Oilex Ltd. plans to drill four new wells Netherlands Qinhuangdao 32-6 comprehensive ad- in the Cambay Field, located in the Arthur Schavemaker justment project. The Qinhuangdao 32-6 State of Gujarat, India. Approved by Tel: (+31) 547 275005 oilfield is located at the central north of the Cambay Field joint venture (JV) [email protected] Bohai Bay with an average water depth of and the government of India, the work Norway/Denmark/Sweden/ approximately 20m. program includes two firm wells and Finland/Austria/Germany The main production facilities of two contingent wells. Scheduled to run Brenda Homewood Tel: +44 (0) 1732 459683 Qinhuangdao 32-6 comprehensive ad- in the course of two years commencing [email protected] justment project include four platforms 2015, the first well is expected to spud and 99 producing wells. This project is late this year, subject to the finalization United Kingdom Neil Levett fully on-stream and is expected to reach of funding. Tendering activities are Tel: +44 (0) 1732 459683 its ODP designed peak production of ap- currently underway. Construction of [email protected] proximately 36,000 b/d in 2015. production facilities at Cambay-73 CNOOC is the operator and holds 75.5% is 50% complete and the JV plans France/Spain Paul Thornhill working interest in Qinhuangdao 32-6 to commence a five well work-over Tel: +44 (0) 1732 459683 comprehensive adjustment project with campaign to boost oil and gas production [email protected] partner Chevron China Energy Co. (24.5%). in 2015. Content is copyright protected and provided for personal use only - not for reproduction or retransmission. 6 AOG | March · April 2015 For reprints please contact the Publisher. aogdigital.com aogdigital.com

006_AOG0415_Regbriefs.indd 6 4/1/15 10:01 PM Indonesia the remaining interest in the block. In leads and prospects, with gross prospec- • LION GETS TWO addition to Block A5, Chevron has a tive resource estimate of approximately 11 SUMATRA JOINT STUDIES 28.3% non-operated interest in a PSC for Tcf and about 400 MMbbl of condensate. Lion Energy received formal approval the production of natural gas from the from the Directorate General of Oil and Yadana and Sein fi elds, within Blocks Russia Gas (MIGAS) of the award of two separate M5 and M6, in the Andaman Sea. • GAZPROM NEFT unconventional joint studies over two FINDS OIL AT PRIOBSKOYE highly prospective areas in Indonesia’s New Zealand Gazpromneft Khantos completed testing North and Central Sumatra basins. In • MAARI MR6A WELL of an initial two wells, drilled to allow North Sumatra, Lion will lead a joint WELCOMES FIRST OIL analysis of deposits in the Bazhenov study covering an area of 4684sq km in the Production from the Maari MR6A devel- formation, in the south of the Priobskoye southeast of the basin. Under an agree- opment well in Taranaki basin off New oilfi eld. Hydraulic fracking was un- ment Lion will operate the study with Zealand has been brought onstream, dertaken at both (directionally drilled) a 55% interest; and the partners in the with an initial production rate of approx- wells, and an infl ow of hydrocarbons conventional Bohorok PSC, which partly imately 7800 b/d of oil. Optimal produc- obtained; testing of a further two similar overlaps the area of the unconventional tion rate will be determined after several wells is to be undertaken in the nearest joint study, jointly have 45% interest. The weeks of production history, Cue Energy future. The strata lie at a depth of 2000– North Sumatra basin is one of the major said, taking into account reservoir man- 3000m, and the low fi ltration properties onshore basins in the Southeast Asian agement considerations. Currently pro- (fl ow capacity) of the underlying geology region with over 25 Tcf of gas and over 1.3 ducing approximately 14,000 b/d of oil, mean the reserves contained therein billion bo and condensate discovered. In the Maari Field production commenced are hard-to-recover. The Bazhenov and • SK INNOVATION SIGNS UP Central Sumatra, Lion will conduct a joint in late March, from the previously unde- Abalaksky formations are also catego- FOR SOUTH CHINA SEA DUO study over an area of 2478sq km covering veloped Mangahewa formation reservoir rized as unconventional (tight) reserves. CNOOC and SK Innovation Co. entered part of the Bengkalis Graben, a major oil unit within the development. into two production sharing contracts province in the east of the basin. Lion is Vietnam (PSCs) in the South China Sea. Blocks the operator of the study with 75% inter- Philippines • KRISENERGY ADDS VIETNAMESE 04/20 and 17/03 are located in the Pearl est, and the conventional rights holder • OTTO, RED EMPEROR STAKE River Mouth basin. Block 04/20 cov- in the partly overlapping area, has a 25% ENTER SC55 DEAL Singapore-based KrisEnergy increased ers a total area of 5138sq km and Block interest. The Central Sumatra basin has Otto Energy Philippines signed a farm-in its stake in Blocks 105 and 120 offshore 17/03 covers a total area of 7686sq km. over 13 billion bo discovered. agreement with Red Emperor Resources Vietnam. KrisEnergy now holds 33.33% Both blocks are in 50-100m water depth. NL for a 15% working interest in SC55 off in each block after Neon Energy dropped According to the terms of the PSCs, SK Myanmar the Philippines. C55 covers 9880sq km out of the joint operating agreement in will be the operator of the two blocks. SK • CHEVRON, WOODSIDE and is a deepwater block in the middle April 2014. Eni Vietnam is still the op- will cover 80% of the exploration costs. INK PSCS OFF MYANMAR of a proven regional oil and gas fairway erator and holds 66.67% in each block. Both parties will conduct 2D seismic Australia’s Woodside Energy signed that extends from the productive Borneo Block 105-110/04 covers an area of data surveys and will drill exploration production sharing contracts (PSCs) for offshore region in the southwest, to the 7192sq km and is located in the central wells. Once entering the development offshore blocks AD-2, AD-5, A-4 and offshore Philippine production assets Song Hong basin. Water depth ranges phase, CNOOC maintains the right to A-7, awarded to the company in the 2013 northwest of Palawan. 3D seismic identi- from 20-80m. participate in up to 60% of the working Myanmar Offshore Bid Round. Located in fi ed Hawkeye as a large turbidite clastic Block 120 covers an area of 8574sq km interest in any commercial discoveries in the southern Rakhine basin, for offshore prospect with gross prospective resource off central Vietnam, overlying the Quang the blocks. blocks AD-5 and A-7, Woodside will hold best estimate for the well at 112 MMbbl. Ngai Graben in the north and central operated equity interests of 55% and 45% Otto says that success at Hawkeye will un- section of the contact area and passing India respectively. Non-operating interests are lock a signifi cant new hydrocarbon play in into the Phu Khanh basin in the southern • OILEX PLANS NEW held by BG Exploration and Production the deepwater Southern Palawan with ma- portion of the block. Water depths range WELLS AT CAMBAY (Myanmar) Pte Ltd., and Myanmar terial follow-up potential in the carbonate from 50-1100m. • Oilex Ltd. plans to drill four new wells Petroleum Exploration and Production in the Cambay Field, located in the Co. Blocks AD-2 and A-4 also located in Australia State of Gujarat, India. Approved by the northern Rakhine Basin, Woodside • PLUTO LNG BACK IN ACTION the Cambay Field joint venture (JV) will hold non-operated interests of 45% Pluto LNG, operated by Woodside and the government of India, the work each, while BG is the operator of both the Petroleum, commenced production fol- program includes two fi rm wells and blocks. Myanmar Petroleum will hold lowing the precautionary action to shut-in two contingent wells. Scheduled to run non-operating interest in block A-4. production in mid-March, after a drilling in the course of two years commencing Unocal Myanmar Offshore Co., a rig drifted near the Pluto fl owlines. The 2015, the fi rst well is expected to spud Chevron subsidiary, will explore the submersible rig, Atwood Osprey, owned late this year, subject to the fi nalization Rakhine basin with Myanmar Oil and by Atwood Oceanics Inc., parted several of funding. Tendering activities are Gas Enterprise (MOGE). The new PSC mooring lines and drifted approximately currently underway. Construction of area, Block A5, lies 200km offshore 3nm from its original position during production facilities at Cambay-73 northwest of Yangon and covers more Cyclone Olwyn. The category three cyclone is 50% complete and the JV plans than 10600sq km. Unocal Myanmar impacted the northwest coast of Australia target range of 84 -91 MMboe will remain to commence a fi ve well work-over will be the operator of the block with bringing hurricane force winds, heavy rain unchanged, the operator said. Pluto LNG is a campaign to boost oil and gas production 99% interest. Royal Marine Engineering and severe fl oodings in Perth. Despite the joint venture by Woodside Petroleum (90%), in 2015. Co., a Myanmar company, will hold temporary shutdown, Pluto’s production Tokyo Gas (5%) and Kansai Electric (5%). • Content is copyright protected and provided for personal use only - not for reproduction or retransmission. aogdigital.com aogdigital.com For reprints please contact the Publisher. March · April 2015 | AOG 7

006_AOG0415_Regbriefs.indd 7 4/1/15 10:03 PM Shipyards EMAS christens US$600 million vessel EMAS AMC, the subsea services division of Singapore listed EZRA Holdings Ltd., o cially christened the Lewek Constellation prior to its departure to the Gulf of Mexico to commence work for Noble Energy. The vessel was initially conceptualized in 2009 and its hull was launched in 2012. The Lewek Constellation measures 178.27m by 46m, and is designed to deliver complex projects in a safe, e cient and reliable manner in water depths exceeding 3000m. “I would like to thank the many hard-working and committed people within EMAS AMC, TRIYARDS and Huisman who have made this achievement possible,” said C.J. D’Cort, chief executive o cer, EMAS AMC. The vessel currently has a backlog of projects valued at approximately US$500 million. The christening was held in Schiedam, the Lewek Constellation. Photo from EMAS AMC. Netherlands. •

• NAM CHEONG tion, on the basis of meeting seven inter- • KEPPEL FELS’ 100TH JACKUP RIG US$58 MILLION VESSEL SALES national and industry design standards. Keppel FELS, a wholly owned subsid- Kuala Lumpur, Malaysia-based ship- It operates on a fully hydraulic drive, iary of Keppel Offshore & Marine, is builder Nam Cheong sold two offshore world-leading diesel engine and transfer on track to deliver PV Drilling VI, a support vessels worth approximately case gears, in addition to load sensing KFELS B Class jackup rig, to PV Drill- US$58 million. The vessels are scheduled system for power output and control. ing Overseas (PVDO), a subsidiary of for delivery in 2015 and 2016. The KY720 realizes high speed of the PetroVietnam Drilling & Well Services “We are delighted to kick-off 2015 with power head, while keeping the motor (PV Drilling). the securing of two new contracts. With load low due to its optimized hydraulic The KFELS B Class rig is able to oper- these contracts, it brings our cumulative system. Moreover, the energy consump- ate in water depths of up to 400ft with a order book to a robust US$460 million,” tion is cut by 30-40% and operators drilling depth of 30,000ft and enhanced said Leong Seng Keat, chief executive of- required from eight to three. features like engines that meet more ﬁ cer, Nam Cheong. stringent emission standards, increased • BOSKALIS INTRODUCES capacity for mud pit tanks, a secondary • KERUI DEVELOPS NEW SEMISUB tensioning system and accommodation FULLY HYDRAULIC DRILLING RIG The Dockwise vessel White Marlin was for 150 persons. Integrated with automated wellhead named and christened during a festive “PV Drilling VI is PVDO’s ﬁ rst jack-up tools, fast moving capability, fully hy- ceremony in Guangzhou, China. Follow- rig, and will play an important role in draulic drive and compact structure, the ing the ceremony, the semisubmersible accelerating PVDO’s drilling program for fully hydraulic mobile drilling rig KY720 heavy transport vessel will be mobilized South East Asia and beyond. We recog- is made by the Kerui Group. to Singapore for its maiden trans- nize the strength of the KFELS B Class According to KY720 research and port of two drilling rigs for discharge rigs as the three rigs that are operating development project teams, the drilling in Abu Dhabi. With a deadweight of for PV Drilling have been performing rig adopts an innovative design of power 72,000-tonne, the White Marlin’s overall very well,” said Pham Tien Dung, CEO of supply, overall structure and tool integra- length is 216m with a 63m beam. PV Drilling and chairman of PVDO.

• SONGA EQUINOX DELIVERY DELAYED Semisubmersible rig Songa Equinox, managed by Songa Offshore went on sea trial as planned in March, but prior to the departure, the incli- nation test indicated a heavier than expected light unit weight. Therefore, the rig required the installation of sponsons and blisters as per those already installed on the company’s other vessels Songa Encourage and Songa Enabler. Daewoo Shipbuilding Marine Engineering will do the remedial work in Korea. The installation work will impact the delivery time of up to four weeks. Songa Equinox was to be hired by Statoil. •

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008_AOG0415_Shipyards.indd 8 4/1/15 10:04 PM 5th Annual Global

forum Save the date! September 15-15 7, 2015 Galveston Island Convention Center

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AOG_0415_Ads.indd 9 4/2/15 9:50 AM Geology & Geophysics Dolphin mobilizes Sanco Sword off Myanmar Dolphin Geophysical mobilized its largest ﬂ oating object seismic spread of 12 streamers, 7050m in length with 150m streamer o the coast of Myanmar for Ophir Energy. By deploying a separation, the equipment has a moving width of 1.850m and the seismic spread covering a total area of about 12sq km. “After a swift mobilization, Dolphin’s Sanco Sword is now in steady production with acquisition of about 150sq km in a single day. This is believed to be a world record for our industry and we expect Sword to become the benchmark vessel when it comes to productivity going forward,” said Bjarne Stavenes, VP of technical at Dolphin Geophysical. Dolphin is also delivering a complete fast track onboard processing system, powered by the ﬁ rm’s proprietary OpenCPS software and its Singapore processing o ce, to facilitate the delivery of a complete Pre- Stack Time Migrated (PSTM) Sharp Broadband dataset. •

• 3D SEISMIC BEGINS KrisEnergy holds a 33.33% working through a DUG Broad PSTM fl ow to IN VIETNAM’S BLOCK 120 interest in Block 120 and is partnered by produce the fi nal data, with delivery Eni Vietnam B.V., as the operator with expected in June 2015. 66.67% working interest. Substantial potential appears to exist not only in and around the Phoenix • BILBY 2D SEISMIC South area, but up-dip on the fl anks of SURVEY MOVES FORWARD the basin, where the results of Kerau- The Bilby non-exclusive 2D seismic sur- dren-1 demonstrate signifi cantly better vey in the Bedout Sub-basin and Broome quality reservoirs exist within the platform in Western Australia is pro- Triassic sediments, said Rachel Masters, gressing as planned, according to BGP global sales manager for Searcher. and Searcher Seismic. “The results also highlight the poten- The survey has been designed to tial for oil to migrate up onto the adjacent provide a grid of modern, high quality Broome Platform into accumulations analo- data to help identify prospective struc- gous to the Stag, Gwydion and Cornea fi elds The CGG Amadeus, owned by PTSC CGGV tural and stratigraphic trends that can be elsewhere in the region,” said Masters. Geophysical Survey, has commenced a used for regional evaluations and future 570sq km 3D seismic survey in Block 120 detailed seismic survey design. It will • GARDLINE CGG WINS offshore central Vietnam. Block 120 comprise of approximately 12,300km of GIPPSLAND 2D SURVEY DEAL overlies Quang Ngai Graben and Tri Ton 2D long-offset, high resolution broadband Gardline CGG has been selected by Horst, which covers an area of 6869sq km data over 2x4, 4x8 and 8x8 km grids. Geoscience Australia to acquire the with water depths ranging from 50-650m. Using Sercel Sentinel Solid Streamer Gippsland 2D Infi ll marine seismic sur- The survey was designed to image the technology, Bolt Source equipment and vey offshore Victoria in Australia. carbonate and basement sections of the continuous recording, the survey will The Duke survey vessel, owned and Ca Lang prospect and associated leads be acquired by the BGP Explorer, while operated by the Singapore-based fi rm, is on the Tri Ton Horst. It will tie into the DownUnder GeoSolutions will conduct scheduled to begin work on the project 502sq km 3D seismic dataset previously the seismic data processing. in early April. acquired in 2012. Deliverables will initially be provided The survey will cover approximately “In the last 14 months, we have under- 800km in the Gippsland basin. An ad- taken detailed analysis of our geological ditional bathymetric profi ling survey will model for Block 120, incorporating the also be undertaken to infi ll between seis- data from the Ca Ngu-1 well,” comment- mic lines at the end of the program. The ed Chris Gibson-Robinson, KrisEnergy’s Gippsland basin, situated in southeastern director for exploration and production. Australia about 200km east of the city “Now our attention is focused on the Ca of Melbourne, holds approximately 400 Lang area and we look forward to being MMbbl of liquids and 6 Tcf of gas. The 2D able to more clearly map and further de- Infi ll survey is part of the National CO2 risk the prospect, which we believe has Infrastructure Plan to aid in the identifi ca- a high chance of intersecting hydrocar- tion of potential sites suitable for the long- bons in multiple objectives.” term storage of CO2 in Australia. • Content is copyright protected and provided for personal use only - not for reproduction or retransmission. 10 AOG | March · April 2015 For reprints please contact the Publisher. aogdigital.com

010_AOG0415_G&G.indd 10 4/1/15 10:07 PM HOW DO YOU BRING CLARITY TO WELL MANAGEMENT?

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Content is copyright protected and provided for personal use only - not for reproduction archerwell.com or retransmission./qa For reprints please contact the Publisher.

AOG_0415_Ads.indd 11 4/2/15 9:51 AM Rigs continue to idle as Asian drilling activities decline Audrey Raj reports on the global rig market and its effects on the Asian oil and gas industry.

n the wake of tumbling oil prices, offshore drilling contrac- Global drilling activities Itors are finding it a challenge to secure new contracts, as According to Douglas-Westwood, there are still plenty of off- major oil producers cut exploration spending. shore wells to be drilled, if the 2015 oil prices average between In 2015, BP plans to reduce exploration expenditure and $50-70/bbl, but companies in the deepwater drilling market postpone marginal projects in the upstream, and not advance may continue to take a hit. selected projects in the downstream and other areas, the com- Increasing shallow water explorations in countries like pany said in a statement. Malaysia and Indonesia could see some increase in drilling ac- As a result, the firm’s organic capital expenditure in 2015 is tivities, while South Asian countries will experience a decline. expected to total around US$20 billion, significantly lower than However, in the South Pacific, Australia is on track to take over previous guidance of $24-26 billion. Total from Qatar as the world’s leading liquefied organic capital expenditure in 2014 was natural gas (LNG) producer, despite strug- $22.9 billion, lower than initial guidance of gling with rising project costs and high labor $24-25 billion. Out of the rates. About 84% of the region’s 285 wells Similarly, along with Shell and Chevron will be in Australia. announcing spending cuts, Total too re- 182 rigs in Although overall well numbers dip in vealed its cost reduction guidance in its 4Q 2015, Wood Mackenzie says drilling activity and full-year 2014 results. Total plans to in 2016 is set to recover as many explorers lower its organic investments by more than Southeast Asia, seize chance to drill at lower costs. 10%, from $26.4 billion in 2014 to $23-24 billion in 2015. The exploration budget has only 83 are Active rig counts been reduced by about 30%, to $1.9 billion The Baker Hughes Rotary Rig Counts for in 2015. February 2015 showed that the worldwide Moreover, according to The Malaysian in service. rig count was 2986, down 750 from the 3736 Reserve, the country’s state-owned oil counted in February 2014. and gas company Petronas is taking steps The average Asia Pacific rig count for to reduce its planned capital investments and operating February 2015 was 240, down 19 from the 259 counted in expenditure, in 2015, but declined to disclose the scale of February 2014. the cut. The average Asia Pacific offshore rig count was 104, down 15 With operators announcing budget cuts, concerns about from the 119 counted in February 2014. Land rigs totaled 136 drilling contractors’ ability to put their most expensive assets in February 2015, down four from the 140 counted same month to use has become a global topic of discussion. last year. With companies are moving swiftly to cut exploration expen- The Baker Hughes Rotary Rig Counts are the number of drill- diture versus 2014 levels, Wood Mackenzie’s principal analyst ing rigs actively exploring for or developing oil or natural gas for Asia-Pacific upstream research, Angus Rodger said, there in the US, Asia Pacific, Europe and international markets. could be less high-cost, high-risk frontier drilling in remote or Moreover, out of the 182 rigs in Southeast Asia, only 83 are in new areas, such as the Browse basin in Australia or Indonesian service, reported the BBC in its Asia Business report. Globally deepwater basins. an estimated 200 rigs are coming into operation the next six “Companies will focus their attention is infrastructure-led years; and an older rig left to idle can cost approximately exploration, lower-cost shallow or mature areas and apprais- $12,000 to sit cold stacked als on existing discoveries,” he says. “Australia and Southeast Asia should therefore see more drilling activity in 2015 from Cost control the lower-cost jackup side of the market, rather than the higher Downward pressure on rig rates for new contracts combined cost deepwater drillship segment.” with a rig surplus means drilling contractors inevitably have to Content is copyright protected and provided for personal use only - not for reproduction or retransmission. 12 AOG | March · April 2015 For reprints please contact the Publisher. aogdigital.com

012_AOG0415_Feature1_MarketForecast.indd 12 4/1/15 10:09 PM Offshore rig. Photo from iStock.

evolve their businesses to cope with the downturn, Rodger said. The sixth unit, the Ocean Winner, will be retired and scrapped “The first move is to cut internal costs, which often includes upon completion of its current contract term in Brazil, laying-off non-core or support staff. At the same time, we are Diamond Offshore said at the time of the announcement. also seeing an increase in the number of rigs being cold stacked Although some contractors are scrapping older units within or scrapped,” he says. their fleet, this alone will not be enough to balance the market, “On the other hand, a lower oil price does provide some Rodger said. benefit. Meaning lower fuel costs should flow though to lower “For that to happen you need both an uptick in demand, and logistics costs, plus a previous shortage of skilled staff and a for many of the existing rigs, like floaters, jackups or drillships subsequent increase in wages has now evaporated,” he added. under construction, to have their deliveries either deferred or Transocean and Hercules Offshore are expected to scrap the cancelled altogether. We are seeing activity-gathering pace in most vessels, according to Bloomberg Intelligence. Hercules this latter area, as companies are seeking the deferral or can- Offshore has seven shallow-water rigs, all in the Gulf of cellation of newbuild rigs. Mexico, that have been cold-stacked for an average of five years. “It is also worth noting that the rigs being earmarked for As AOG goes to press, Transocean said it plans to scrap scrap are the older, cheaper units, leaving a core of the remain- 18 lower-specification deepwater and midwater rigs. Some of ing fleet that is higher-cost with advance specifications. These those rigs include: Sedco 710, Sovereign Explorer, Sedco 700, units are, however, those that may be less in demand in 2015,” Sedco 601, J.W. McLean, GSF Arctic I, Falcon 100, Sedneth 701, he concluded. Sedco 703, Sedco 709, and C. K. Rhein, Jr. Singapore’s ASL Marine disclosed that a client backed out of Similarly, Diamond Offshore Drilling plans to retire and taking delivery of two offshore support vessels. South Korean scrap six of its mid-water semisubmersible rigs, the company shipbuilders like Hyundai Heavy Industries and Samsung said in October 2014. have been hit hard coping with falling new orders. The retired units include the Ocean Epoch, Ocean New Hyundai posted an accumulated operating loss of 3.2 trillion Era and Ocean Whittington, which had been cold-stacked, and won (US$2.8 billion) in 2014, while Samsung only secured $7.3 the Ocean Concord and Ocean Yatzy, which are idle in Brazil. billion of new orders, falling short of its $15 billion target. AOG Content is copyright protected and provided for personal use only - not for reproduction or retransmission. aogdigital.com For reprints please contact the Publisher. March · April | AOG 13

012_AOG0415_Feature1_MarketForecast.indd 13 4/1/15 10:09 PM Standardization of SENT test method for sour service environments

Requirements for testing facture toughness in pipelines is increasing, as more and more are transporting sour gas and liquids. A standardized SENT test methodology speci cally for pipelines in sour service environments is being developed to get the testing right. Dr. Jens Petter Tronskar explains.

ncreasing numbers of sour oil and gas producing wells are going to be encountered in many regions of the world, Iin particular, the Middle East and the Commonwealth of Independent States. The presence of sour service ﬂ uids i.e. those containing

wet H2S, often in combination with various levels of CO2 in high-pressure and high-temperature (HPHT) locations, not only causes deterioration to pipelines, but in case of leaks and pipeline ruptures are extremely toxic and represent high risk to the health and safety of personnel. Sour service also presents a signiﬁ cant demand on the performance of the pipeline material in terms of fracture toughness. The detrimental effects of sour service can range from small pinhole leaks to catastrophic failure in pipelines. Figure 1: The SENT specimen (as compared to the higher con- Currently, there are no guidelines for establishing the straint SENB specimen) is designed to give a crack tip constraint fracture toughness of pipeline material through single edge close to that of a pipe with a ﬂ aw. Images from DNV GL. notched tensile (SENT) testing in sour service environments. Content is copyright protected and provided for personal use only - not for reproduction or retransmission. 14 AOG | March · April 2015 For reprints please contact the Publisher. aogdigital.com

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AOG_0415_Ads.indd 15 4/2/15 9:51 AM Asian Oil & Gas_Apr2015.indd 1 3/20/15 4:05 PM A Joint Industry Project by DNV GL has been launched by over the past 8-10 years. A SENT specimen is designed to pro- the Singapore Deepwater Technology Centre and the com- vide a crack tip constraint similar to that of an actual pipe in pany’s laboratories in Singapore and Columbus, Ohio, to bending containing a fl aw (see fi g. 1) and as per DNV-RP-F108 address this gap in knowledge of infl uence of environmental allows for realistic crack depths of a/W = 0.2-0.5. The DNV- parameters and improve understanding in order to pursue OS-F101 (2013)/Appendix A allows SENT testing for operation the development of standardized guidelines. environments (see fi g. 2). In a sour environment, however, results are dependent on Hostile complexities numerous environmental and test parameters that infl uence SENT testing has been applied for the characterization of fracture performance, which can be critical for sour service girth welds and analysis of realistic crack depths in pipelines testing. Neither DNV-OS-F101 nor DNV-RP-F108 currently provide detailed guidance on how to determine the fracture toughness of steel components for assessing fl aws exposed directly or indirectly to a hydrogen charging source. DNV GL has carried out signifi cant research in this area at its laboratories in Singapore and Columbus. A pipe material and weld performing well in air may exhibit drastically reduced fracture toughness and resistance in a sour environment. In general, the fracture toughness tends

to decrease with increased H2S concentration

(partial pressure of H2S) and decreased loading or strain rate. Fracture toughness is a critical input param- eter for engineering critical assessment (ECA) of planar (crack-like) fl aws. The presence of hydrogen in steel can lead to a signifi cant reduction in fracture toughness due to its embrittling effects; such a reduction can have a signifi cant infl uence on the fl aw tolerance of hydrogen-containing Figure 2: SENT (Single Edge Notched Tension) specimen and the relationship components. In some cases, this may result in between fl aw orientation and height in the pipe and the crack orientation and maximum tolerable fl aw sizes being smaller size in the specimen. than would be accepted by normal workman- ship criteria in codes such as DNV OS-F101 or API1104. Fracture toughness behavior in sour service is predominantly an effect of hydrogen diffusion, causing hydrogen embrittlement. Through detailed experiments and analysis, key parameters known to infl uence fracture toughness test results will be better understood. A standardized approach to performing SENT tests on C-Mn steel in sour environments would also provide more reliable and consistent results and thus the derivation of realistic fl aw acceptance criteria Figure 3: Performing di usible hydrogen studies using Hydrogen Permeation Cell as per ASTM G148 (left) and Bruker G4 Phoenix di usible hydrogen ana- for sour service fl owlines and risers in an ECA. lyzer (right). A collaborative approach DNV GL is launching a joint industry project (JIP) to standardize SENT testing for sour service environments. By using different SENT test methods already developed in its offi ces and laboratories in Singapore and Columbus, the company aims to validate different SENT test methodologies for pipeline steels in sour service environments. This will be followed by the provision of guidelines on how to establish the fracture resistance curves (CTOD/J R-curve) for pipelines operating in sour service environments Figure 4: Testing of both SENT and SENB specimens with similar a/W ratios as well as for deriving the CTOD/J corresponding of 0.2 of the same base material of the X65 pipeline steel under rising load to crack initiation. conditions. The company currently has an ongoing JIP at Content is copyright protected and provided for personal use only - not for reproduction or retransmission. 16 AOG | March · April 2015 For reprints please contact the Publisher. aogdigital.com

014_AOG0415_Feature3_PipelinesDNV.indd 16 4/1/15 10:13 PM Columbus laboratory to develop best practice guidelines for The Phase I test matrix will incorporate at least two test performing sour service ECA, scheduled for completion in methods, while fracture resistance curves and critical fracture December 2015. This project includes fatigue crack growth rate toughness will be reported. and fracture toughness tests conducted in a wide range of sour Following Phase I, Phase II will perform a detailed study of environments. It is expected that the results will complement other parameters and methods. Test variables might include the new JIP to develop a sour service SENT methodology. (but are not limited to): pre-loading methods, additional sour The project will run for two years in three phases and will environments, materials, microstructures, and methods for as- initially study the key test parameters and evaluate various sessing internal surface, embedded flaws and external flaws. test methods before establishing a guideline for SENT testing A standardized SENT test methodology in sour service en- in sour service environments. A number of industry sponsors, vironments will be proposed in Phase III, while Phase IV will including an oil and gas company, contractors and pipe mills involve the development of a DNV GL guideline and potentially are involved. provide input to future revisions of DNV GL OS-F101 Appendix The first phase of the project will evaluate results of recent A for Engineering Critical Assessments of pipeline girth welds studies and the experience of SENT testing in sour environ- exposed to sour service environments. AOG ments to ascertain the current knowledge gaps and propose a detailed work scope. This will include a review of the loading Jens P. Tronskar is vice president and chief method, K-rate, crack depth, soaking duration, pre-loading, technology officer for DNV GL’s Deepwater etc. The results are expected to provide an improved un- Technology Centre in Singapore. He has derstanding of how the test techniques and test parameters more than 35 years’ experience in materials will influence fracture toughness in sour service. This will technology research, failure investigations include: and deterministic/probabilistic fracture • Effect of notch depth; comparison between a/W = 0.2 and 0.5 mechanics analyses/Fitness-For-Service (as per validity limits in DNV-RP-F108) analyses of structural and piping/process • Effect of loading rate; test with 3-4 different stress intensity components and pipelines for the offshore and onshore oil and increase rates gas industry. He has a MSc degree in Materials’ Physics and • Hydrogen diffusible studies for understanding soaking time Physical Metallurgy from the Technical University of Norway required prior to testing (see Fig. 3) (NTH) and a PhD from the National University (NUS) of • Constraint effects; comparison between SENT and single end Singapore in Fracture Mechanics applied to floating production, notched beam (SENB) tests (see Fig. 4) storage and offloading (FPSO) vessels and ships.

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014_AOG0415_Feature3_PipelinesDNV.indd 17 4/1/15 10:14 PM Recruiting for commissioning of oil and gas developments

With first oil the primary target of the commissioning phase, there can be a tendency to underestimate the challenge of finding the right personnel and then mobilizing them safely and compliantly for this critical stage of the project lifecycle, advises Air Energi’s Andy Greenwood and Steve Field.

ommissioning and planning are essential elements in The commissioning manager must be appointed at an early successfully handing over assets into production on project stage to look at how the development will be delivered Ctime. There are huge penalties involved for the con- from an operational perspective and provide guidance on time- tracted parties should delivery deadlines be missed and a proj- frames for the commissioning scope of work. Engaging them prior ect fall behind schedule. Yet it is often the case that commis- to the onset of commissioning can prove invaluable – especially sioning is not afforded the same level of detail as the design, when the person is involved in final design, hazard and operabili- construction and production phases of a project. ty (HAZOP) reviews. Ideally, they will have the overall knowledge Certainly, if a project has been planned and constructed of both construction and commissioning processes and activities. correctly for the operating environment, then the equipment For expatriates coming to perform a managerial role in one and facilities it comprises should function as intended. But of South Korea’s projects, there are several challenges. They commissioning tends to be undervalued in scenarios where the need to be skilled at implementing strong processes with many expectation is that it has been done correctly, and that every- checkpoints all the way through the project to ensure that thing will run smoothly as a result. what they have communicated to their teams is understood The success of any commissioning project can be attributed and followed to the letter. With language barriers it is easy for to a single factor – its workforce. Having the correct person- misunderstandings to occur. nel (not only experienced but with the right attributes) is not The commissioning manager will work closely with con- always the cheapest option, but the potential increased cost of struction and design functions, a particularly important ap- securing a talented workforce pays dividends when minimiz- proach because design engineers spend little time onsite. Those ing risk around schedule delays or disruption. involved with commissioning bring the practical experience of For example, South Korea’s shipyards employ hundreds of thou- running the equipment together as an operational unit. sands of people at any one time. Given the complex nature of some Once commissioning starts to gain momentum, the project sees of mega projects currently underway, operators must attract world significant ramp-up. There could be one commissioning manager, expertise to South Korea to ensure that their projects are being three lead engineers, and eight engineers beneath them respon- delivered to the highest standard and, crucially, on schedule. sible for recruiting some 80-100 technicians in total. For South Meticulous planning reduces the risk of things going wrong. Korea’s complex projects the requirements of the management As such, it follows that with poor planning, there is greater team can be significant, and will often be managers overseeing chance for risk. Commissioning can, therefore, be likened to other managers. taking out an insurance policy, where investing in the best talent available at the outset can see true value coming to the fore Working back if and when issues arise. From the outset, it is vital to obtain a full understanding of the workforce requirement and work back to ensure the necessary Early stage recruitment resources can be mobilized on time. Key workforce consider- It is the responsibility of the commissioning manager to organize, ations in this phase include the skill sets required, the location plan and manage a team for timely execution of commissioning of the project, and the type of project being undertaken. activities as per the project and contract requirements. The key is This can prove one of the most challenging aspects of commis- bringing in the right person for the right job at the right time. sioning. For example, if an operator needs new recruits to start in Content is copyright protected and provided for personal use only - not for reproduction or retransmission. 18 AOG | March · April 2015 For reprints please contact the Publisher. aogdigital.com

018_AOG0415_Feature5_Logistics.indd 18 4/1/15 10:16 PM lengths to ensure that the corporate health and safety specifications of their clients are mirrored in the contracts signed by candidates. They might also offer full private medical cover, which extends to repatriation or medivac situations if necessary in hardship locations. This provides assurance to both the operator and the individual that there are systems in place should they need to be evacuated quickly.

Retention bonus Given that commissioning projects run to an invariably tight timeframe, knowledge continuation is vital. For example, where a team of ten has worked on a vessel for many months, they will have an excellent knowledge of exactly how it operates and all its nuances. Should those ten people be lost to another project, this is guaran- Early planning is crucial to the successful completion of a teed to have a knock-on effect. project’s commissioning phase. Photo from Shutterstock Nevertheless, a high rate of retention can be achieved by maintaining regular contact with the workforce and The commissioning manager must be appointed at an early June, and the development is in a country where the visa process addressing any issues they have at an early stage. In addition, project stage to look at how the development will be delivered takes a month to complete, then CVs would need to be collated, they should be engaged on a competitive rate from the outset, and from an operational perspective and provide guidance on time- reviewed and shortlisted by the commissioning management incentivized by building an attractive package of completion and frames for the commissioning scope of work. Engaging them prior team mid-way through January, enabling the interview and can- retention bonuses. These must be considered carefully, with each to the onset of commissioning can prove invaluable – especially didate selection process to be completed by February. This will bonus structured in a way to meet key business drivers. when the person is involved in final design, hazard and operabili- then leave sufficient time for the necessary onboarding processes. ty (HAZOP) reviews. Ideally, they will have the overall knowledge Getting these resources to the required locations safely, and Consultative approach of both construction and commissioning processes and activities. determining the best approach to ensure compliance with local Commissioning is a critical phase in the lifecycle of oil and gas For expatriates coming to perform a managerial role in one tax laws, are key challenges. Therefore, it is essential to take projects. It is also arguably the most high profile, since it is the of South Korea’s projects, there are several challenges. They ownership of the global mobility issues because getting the penultimate step to first oil. It is therefore important to work need to be skilled at implementing strong processes with many right people to the project location is by no means straightfor- with commissioning teams that truly understand the full range checkpoints all the way through the project to ensure that ward. The question of how you get people there, how you look of commissioning processes and procedures, and the factors what they have communicated to their teams is understood after them, and who is really responsible should be a top prior- that make the delivery of a project successful. and followed to the letter. With language barriers it is easy for ity – especially in a country such as South Korea. Likewise, working with a specialist provider of workforce misunderstandings to occur. solutions with access to a trusted network of professionals and The commissioning manager will work closely with con- Clear processes a track record of both successful deliveries and high retention struction and design functions, a particularly important ap- Commissioning requirements differ by project – depending rates, can help operators mitigate workforce related risk and proach because design engineers spend little time onsite. Those on finances available, the cost and difficulty of the commis- maximize return on investment at the commissioning phase. involved with commissioning bring the practical experience of sioning phase itself, and the type of project (onshore, offshore, Crucially, a consultative approach must be adopted, whereby running the equipment together as an operational unit. conventional, or unconventional). Having proper plans and the requirements are fully understood and guidance given on Once commissioning starts to gain momentum, the project sees procedures in place early enough can eliminate a lot of the risk how best to deliver them. Resourcing of the commissioning phase significant ramp-up. There could be one commissioning manager, faced. Experienced leadership, project procedures and plans must therefore be an integral part of the overall project plan, three lead engineers, and eight engineers beneath them respon- are paramount for the safe and cost effective delivery of any rather than being planned in isolation. Furthermore, it’s not just a sible for recruiting some 80-100 technicians in total. For South project. ‘Laid back’ will never deliver safely, or on schedule. question of hiring people in a timely manner, but bringing in the Korea’s complex projects the requirements of the management This is one of the reasons why the majority of operators right candidates for the right jobs at the right time. AOG team can be significant, and will often be managers overseeing engage a specialist workforce solutions provider under a prime other managers. vendor agreement to manage the complexities of resourcing the Andy Greenwood joined Air Energi in 2010, establishing a new commissioning phase. division, specializing in the recruitment and deployment of com- Working back Ensuring compliance with local laws requires clear and missioning and completions specialists across the UK, Europe From the outset, it is vital to obtain a full understanding of the well-defined processes. When arranging visas for countries and Africa. In 2013, Greenwood became recruitment manager for workforce requirement and work back to ensure the necessary such as Malaysia or Singapore for example, medicals and inoc- Europe and Africa, tasked with ensuring delivery against regional resources can be mobilized on time. Key workforce consider- ulations are required. In locations such as these, meet and greet and global account while developing Air Energi’s contract recruit- ations in this phase include the skill sets required, the location services will be necessary to comply with operators’ corporate ment team across the region. of the project, and the type of project being undertaken. policies on health and safety, and security of personnel. This can prove one of the most challenging aspects of commis- Safety remains the top priority for both workforce special- Steve Field has over 20 years’ experience delivering global man- sioning. For example, if an operator needs new recruits to start in ists and operators. Some recruitment specialists will go to great power solutions to major operators and EPCM consultants. Content is copyright protected and provided for personal use only - not for reproduction or retransmission. aogdigital.com For reprints please contact the Publisher. March · April | AOG 19

018_AOG0415_Feature5_Logistics.indd 19 4/1/15 10:17 PM Spotlight Women in oil and gas engineering AOG discusses the opportunities and challenges confronting women in the energy sector with engineers from Atteris, Premier Oil, Technip, INPEX and EMAS AMC.

By Audrey Raj ith females becoming more present in occu- Challenge by Air Energi and OilCareers.com showed, pations that have been traditionally oriented the Asia-Pacific region in particular has seen a decline Wtowards men, long gone are the days where in the number of women taking up engineering for regular office positions are for the career-minded women. either education or employment, as opposed to other The oil and gas sector is one to take note. Although only a small regions such as Europe and North America. percentage of jobs are filled by women, research suggests the There was a shortage of female role models from number of females joining the energy workforce has increased the top and a lack of encouragement for more young over the years. women to take up Science, Technology, Engineering and The session “Empowering Women in Oil and Gas Industry” Mathematics (STEM) subjects in higher education, the research topped the agenda at the 8th International Petroleum revealed. Technology Conference (IPTC), held in Kuala Lumpur, Malaysia, To help better understand the opportunities and challenges last December. confronting women in the energy sector, we chatted with five The meeting outlined the opportunities and challenges for female engineers from Atteris, Premier Oil, Technip, INPEX and females in petroleum engineering, plus addressed how a lot of EMAS AMC, and this is what they had to say. progress had to be made to increase larger minority presence in

the industry. According to the Global Diversity and Inclusion Report, a study Allison conducted by British Petroleum (BP) and Rigzone, examining Selman female representation from the perspective of 3,000 global oil and gas professionals, showed that an increasing number Brownfield Team Leader, Atteris of women are taking advantage of opportunities in the energy industry. Graduated from the While 72% believed the oil and gas remains a male-dominated University of Western industry, and there is still a lot of progress to be made, the Australia with a bach- majority of energy professionals said it was important for the elor of commerce and industry to ensure it is attractive to women. This finding is a bachelor of engineer- particularly relevant given nearly nine out of ten survey respon- ing (Materials), Allison dents were male. Selman’s career spans However, the survey Women in Oil & Gas: The Diversity across the mining and Content is copyright protected and provided for personal use only - not for reproduction or retransmission. 20 AOG | March · April 2015 For reprints please contact the Publisher. aogdigital.com

020_AOG0415_Spotlight_Women.indd 20 4/2/15 12:09 PM Akmar Nazari on Technip’s state-of-the-art pipelay vessel, Deep Energy. Photo from Akmar Nazari.

energy sectors in Australia, Indonesia and Bangkok. Having engineering is a male-dominated, physical profession, thus previously specialized in materials, design and pipeline engineer- not many females are encouraged to pursue engineering as a ing, she has worked with Transfield, J P Kenny, IONIK Consulting, career option. Wood Group Kenny and CUEL, before joining Atteris as brown- Due to the huge gender gap in this field, was it difficult for you field team leader. Here, Allison leads a team of engineers who to work as a team? The impact of gender on teamwork has both positive and provide pipeline integrity management engineering solutions. negative aspects. It can be challenging in terms of learning that different people communicate differently – this is not specifi- Why did you choose to pursue a career in the oil and gas cally due to gender – and learning how to communicate effec- industry? tively with different individuals. The impact of gender on the To be honest, I did not choose the oil and gas engineering as ability to work as a team would be more evident in work places a career path; nor did I realize it was a career path during uni- that generally do not support diversity. I would encourage versity. I started my professional career as a materials engineer individuals to work on communication and leadership skills in the mining industry. The opportunity to pursue a career in in general; to understand that there are differences that result pipeline engineering presented itself through my professional from diverse backgrounds. network and appeared to be technically interesting, so I took What are some of the challenges for women working offshore? the chance to explore this path. I am very glad to have made One of the biggest challenges for women is obtaining on-site this choice as I enjoy the work and the industry. practical experience. This is due to limited accommodation What’s your take on women being under-represented in the facilities and work practices. This limits the opportunities that field of engineering? are available for female engineers to go offshore and gain in- There is an under-representation of women in the field valuable experience on-site. The other biggest challenge is with of engineering in the majority of regions around the world. establishing oneself in a male-dominated field; in particular if This is not the case in some European countries. I believe it working with certain cultures that do not support equal oppor- is a combination of cultural influence, lack of education and tunities for females. At the end of the day, engineering is a great a misperception of the profession in general. We are given profession where a strong career can be built and immense job the perception through the media and general society that satisfaction can be obtained. Content is copyright protected and provided for personal use only - not for reproduction or retransmission. aogdigital.com For reprints please contact the Publisher. March · April | AOG 21

020_AOG0415_Spotlight_Women.indd 21 4/2/15 12:10 PM Sylvana Liauw Vivia Bora Project Engineer, EMAS Senior Subsea Pipeline AMC Engineer, Premier Oil

A graduate from the A chartered engineer with National University of over 15 years’ experience Singapore, Sylvana Liauw in pipeline engineering, completed her civil engi- Vivia Bora has a bachelor neering degree in 2007. in civil engineering from She was first introduced Universitas Hasanuddin to the energy sector dur- Indonesia; and a master in ing internship, from which project management from she grew an interest for the University of New South building things in massive Wales (UNSW) Australia. She has previously held positions with scales. Before joining EMAS Pegasus Asia Pacific, BP West Java, PT Amec Berca Indonesia AMC as project engineer, Sylvana worked as junior engineer with and JP Kenny, where she has worked on pipeline projects with Saipem Singapore specializing in pipeline engineering. In her job, international companies like Total Indonesie, Pertamina, China she says, no two projects are identical and every project is a differ- National Offshore Oil Corp., Petrofac and more. Currently, a ent journey with unique challenges. senior engineer with Premier Oil, the mother of two is thankful to be part of a supportive team. Why is there such a small percentage of women in oil and gas engineering? Why did you choose to be an engineer in the oil and gas industry? My personal opinion is perhaps the lack of exposure of how The oil and gas chose me, actually. Upon graduation, I wide the industry is, with extensive opportunities for every- worked in the mining industry for two years, before gaining one. Another reason could also be because of how the industry an opportunity from AusAID to pursue a master’s degree in is portrayed. In the media, the oil and gas industry is associ- Australia. Shortly after graduation I got a job with JPKenny, sta- ated with remote and harsh environment away from home, tioned in Perth, Australia. That was my introduction into the highly hazardous works, or perceived as male-dominated. But oil and gas industry. I remember at that time I was mentored I have met many prominent women in the oil and gas industry, by two women, who inspired me to see that females can do as which means that the percentage has increased over time. good as males in the energy sector. I like the industry because What are some of the challenges for women in the oil and gas it’s challenging and pays well. industry? How do you juggle motherhood and work? In some aspects the nature of the industry is masculine. My children now attend school two-thirds of the day, while You work under the hot sun, away from home, with machines, I am at work. I have home assistants, too. My typical day starts fabrication and construction, amongst many others. Naturally, early and doesn’t necessarily end early. But my manager is very in this industry, or even other industries, there are people who flexible, meaning I do get to attend to my children’s needs, for still adopt the old school mentality who perceive women as less example school meetings, etc. I work full speed while at work competent. Sometimes women have to prove themselves harder and this is the key to managing time and expectation. From 5 to be respected at work. But I have been fortunate. In EMAS, I p.m. to 8 p.m., I spend time with the kids, prepare dinner, help work with people who look beyond gender, and I have seen many with homework, sit in music practices and read to them. Once female engineers whom people look up to. It is not easy, but not they go to bed, I get time for myself. When I go away for busi- impossible. The biggest challenge is for ourselves to deal with. ness and offshore trips, my husband helps out. What’s the most fun thing about your job? What is it like to work on a rig and/or vessel? Many people think engineering is mundane with numbers, It is like working in a small environment with limited choice studies and the reports that we have to do. But I am always of things to do. It is an exciting experience to be onboard, captivated with the mega-results in EMAS. It is about the completing assigned tasks, but it can get to you after a few infrastructure that we build, the oil and gas exported to shore weeks. The feeling of wanting to go home can grow. One of for our daily needs, the offshore challenges in the middle of the the demands working onboard a vessel is team work. The best sea and the solutions we create for the never-been-done before thing to do is to think how we can finish the job collaboratively – it is fascinating. in the best and quickest possible time. Then we can all go home What advice do you have for would-be female engineers? to our loved ones. Engineers build things, whether it is offshore construction How can the energy industry attract more females to the like what I do, airplanes or ships like the mechanical or electri- workforce? cal engineers do, or even coding like the software engineers There is still a level of underrepresentation of women in en- do. Every job has challenges on their own like the nature of the gineering positions. For example, when girls finish high school, work or the people you work with. But if the job excites you very few consider to pursue a career in engineering. They are not and you think you can create an impact, let’s not be discour- made aware from a young age of the career prospects for females aged by what they say about women in engineering. in the field, regardless of its gender domination. Unfortunately, Content is copyright protected and provided for personal use only - not for reproduction or retransmission. 22 AOG | March · April 2015 For reprints please contact the Publisher. aogdigital.com

020_AOG0415_Spotlight_Women.indd 22 4/2/15 12:10 PM PubCorporate 212,72x282,575:Mise en page 1 23/01/2015 10:46 Page1

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AOG_0415_Ads.indd 23 4/2/15 9:52 AM marginalization issues still exist in this male dominated sector, Akmar and such issues too contribute to the reluctance of females choos- Nazari ing to pursue engineering. Once we overcome this, I believe our industry will move forward more quickly. There has been issues Project and that women are not paid as well as males engineers, and this is Senior Rigid not particularly true. At least based on my experience. Pipeline Engineer, Technip

Balsam Currently based Sabiry in Oslo, Norway, working for Technip Graduate Instrument and as project and senior Control Engineer, INPEX rigid pipeline engineer, Akmar Nazari is from Malaysia. She has over eight years’ oil and gas experience. Prior to this she was Balsam Sabiry completed with Worley Parson as pipeline engineer and ROSEN as pipeline a bachelor in mathemati- analyst. Akmar graduated with a bachelor in chemistry from cal science from Al- Universiti Sains Malaysia, before pursuing a post graduate diplo- Mustansiriyah University ma in chemical and process engineering, followed by a master in in Iraq, and a subsequent science in pipeline engineering from the University of Newcastle. bachelor degree and graduate certificate in process What attracted you to the oil and gas industry? instrumentation and control I always knew I wanted to be in this industry. My father’s engineering from the University of Western Australia. Since com- company does subcontracting works for operators in Malaysia, pleting her studies she joined INPEX as graduate instrument and mostly dealing with piping works. Having some insight into control engineer, currently working on the Ichthys LNG project his work sort of inspired me to explore the available options for me. My time at Newcastle University exposed me to pipeline together with the operations engineering team. engineering, so I pursued pipeline engineering upon completion of my first course. Why did you choose to be an engineer in the oil and gas What is it like to work offshore? industry? It’s tough working offshore for an extended period, know- A career in the oil and gas industry was a very appealing ing you have to work for 12 hours per shift. Stress, long hours choice for me because of the diversity within the engineering and sometimes the weather can easily get to you. Of course, teams, the multitude of disciplines, engineering ingenuity and people onboard the vessels, from the captains to the mess boys, creativity, global and unique projects, and at times an ex- are supportive and nice. And the support that we receive from tremely challenging work environment. I believe that the multi people onshore is good, too. But, nothing beats the feeling -disciplinary layers and diversity of teams provide multitude of when everything goes really well and you go home for a well- choices and opportunities for women. deserved rest. Why is there such a small percentage of women in oil and gas What makes the oil and gas pipeline sector a good career path engineering? for women? In general, the number of women practicing engineering is For pipeline engineering, as there are not too many pipeline low because many believe the profession is a male-only profes- engineers in the industry, engineers are always sought, regard- sion. I believe that in some cases women engineers are not less of their gender. Pipeline engineering has a few different given the opportunity or considered for roles in this industry fields of work, such as design, installation and maintenance/in- because most oil and gas projects are predominately located tegrity work. The fact that you can change your field of work to offshore and in remote areas. This, too, makes it less appealing suit your situation gives you flexibility without having to com- for them, particularly those with families. promise skills or experiences. For example, should you need Were you able to find female mentors at work? to focus on your family more; you can always opt to do design For me finding a mentor was never an issue. I am fortunate work, which will not require you to go offshore as frequently. to have a female mentor, moreover my mentor is my aunt who With more experience one can opt to do more management is also an engineer. I also have two other male mentors and our work for the company, too. mentoring relationship is as valuable and rewarding. I believe What advice do you have for female students considering pipe- that the multi -disciplinary layers and team diversity provides line engineering? multitude of choices and opportunities for women. Don’t let the word “pipeline” intimidate you. Pipeline engi- What would you tell fresh graduates seeking work in oil and gas? neering is just like any other line of engineering. Just because A career in the oil and gas industry is a very rewarding you don’t hear it as frequently as civil or mechanical engineering, experience. You will get to witness and be part of the marvels it doesn’t mean that it’s not important and not as interesting. In and ingenuity of extracting oil and gas from the bottoms of the fact, I feel pipeline engineering is more interesting as it is a com- oceans as well as the depths of the deserts. Women too have bination of civil engineering, geotechnical engineering, ocean opportunities to progress into leadership roles in the energy engineering, mechanical engineering and process engineering. If sector, just like any other engineering discipline. you like challenges, then this line of work is for you. AOG Content is copyright protected and provided for personal use only - not for reproduction or retransmission. 24 AOG | March · April 2015 For reprints please contact the Publisher. aogdigital.com

020_AOG0415_Spotlight_Women.indd 24 4/2/15 12:10 PM BUILT BY INNOVATION. LED BY KNOWLEDGE.

Content is copyright protected and provided for personal use only - not for reproduction or retransmission. For reprints please contact the Publisher.

AOG_0415_Ads.inddJanuary.indd 16 25 1/20/154/2/15 9:523:57 AMPM

Caption: ###

GEOFOCUS AUSTRALIA/NEW ZEALAND

Well Integrity, from start to finish Weatherford’s Yves Daniel discusses zonal isolation technologies, including an annulus casing packer, made for Australia’s coal seam gas production

ustralia has long been a leading oil and gas producer thanks to vast reserves off its western Ashores. The last two decades have seen further growth in the nation’s production portfolio, thanks to the development of significant coal seam gas (CSG) reserves in Queensland. Recent estimates suggest that Queensland’s CSG reserves could last for more than 100 years at current production levels. But with this promise of long-reaching gas production comes technical challenges and increased regulatory oversight. Australia’s Coal Seam Gas Code of Practice has established a best practice framework that includes mandatory standards for well construction, monitoring and maintenance, with an emphasis on zonal isolation and protecting the environment. Ad- herence to these standards requires innovative zonal isolation technologies that work in complicated well geometries and production zones. In a conventional CSG well design (left), the practice of cementing individual casing strings with slotted casing in the open hole production zones leads to Throughout its 50-year working history with Aus- risks of gas migration and channeling during the cementing operation or mi- tralian oil and gas producers, Weatherford has de- croannular gas migration during the life of the well, thus contaminating sub- signed and manufactured zonal isolation technologies surface aquifers. The recommended design (right) uses enhanced cementing aimed at ensuring well integrity while saving rig time and zonal isolation technologies that lower isolation risks and comply with and boosting safety and environmental compliance. Australia’s CSG Code of Practice. Images from Weatherford. Inflatable packers have been one area of continued development. By providing immediate and long-lasting seals, ing and the open or cased hole. Built on standard API tubing or these packers ensure reliable zonal isolation for water and gas casing sizes and grades, the ACP consists of a reliable locking shutoff, thus preventing gas migration and facilitating two-or valve system and rubber inflation elements that can be inflated three-stage cementing operations. They also serve to isolate the with either wellbore fluid or cement, as application require- gas bearing coal zones from aquifers that are an essential water ments dictate. source for irrigation and local community water supplies. CSG operators have the choice to inflate an ACP with ce- The BullDog annulus casing packer (ACP) is an inflatable ment due to the reliability that the packer affords during the packer designed to pack off the annular space between the cas- inflation process. Cement inflation provides longevity of the Content is copyright protected and provided for personal use only - not for reproduction or retransmission. 26 AOG | March · April 2015 For reprints please contact the Publisher. aogdigital.com

026_AOG0415_Geo2_Weatherford.indd 26 4/2/15 12:18 PM elastomer seal required to isolate the lower coal seam from from their own wooden crate and subsequently made up as a subterranean formations and aquifers above. This option also complete assembly. allows the operator to meet Australia’s regulatory isolation The life cycle of the wooden crates is short-lived and typi- requirements that the cement be placed within a few meters cally ends at the rig site. The quantity of equipment shipped across the coal seam face for optimal isolation. by this method results in massive quantities of wooden crating Further isolation assurances are provided when an ACP is waste, adding signifi cant disposal costs and creating a large used in conjunction with systems that prevent the migration environmental footprint for every fi eld operation. of production fl uids between the cement and the casing string. The Weatherford Micro-Seal swellable elastomers, for example, Switching to steel are designed to repair the microannulus gaps that could devel- The new initiative was aimed at fi nding suitable replacement crat- op over the life of a well. Such gaps are commonly formed due ing material that would not only reduce environmental impacts, to prolonged production, temperature fl uctuations or movement but also would streamline shipments and improve effi ciency. of the production tubing during a well’s lifetime. Research efforts settled on steel tubulars as the new crating material, which were strong enough to withstand rough han- Optimizing packaging and make-ups dling and storage during shipment, but were cost effective and To be truly effective, the focus on well integrity and optimiza- reusable. The new steel equipment cradles would have to be tion must begin before the zonal isolation equipment arrives simple in design and suitable for effi cient stacking by forklift or crane at any stage of transport and delivery to the well site. Further design development led to the recommendation of making up all of the zonal isolation components into one as- sembled piece at the manufacturing facility in China. This would lower the amount of manual handling and equipment make up by the crew at the rig site, thus lower- ing safety hazards at the same time. The fi nal design allowed for three full zonal isolation assemblies per cradle, The old crating method using which translated to one reusable cradle single-service wood crates delivering equipment for three CSG wells. Once all zonal isolation assemblies are installed in the wells, the cradles are then mobilized back to the point of origin through a tracking system and inspected and repaired as required. The cycle then begins anew, with the cradles returned to the manufacturing plant for loading of three new zonal isolation assemblies.

Tangible savings secured This new sustainable shipment option provides several tangible benefi ts to the CSG operator. Shipping three full assemblies The new method using on one cradle streamlines the logistics reusable steel cradles and procurement processes. It also lowers health and safety risks in the fi eld. at the well site. As part of its mandate to conduct operations Eliminating wood out of the shipping equation lowers while reducing impacts to land and decreasing energy usage, disposal costs for the operator and has the potential to save an Weatherford embarked on a new packaging initiative for its estimated 154,000 kgs of treated wood per year (based on an zonal isolation tools in early 2014. annual fi eld development plan of 700 wells). In total, an opera- Much of the zonal isolation equipment used in the CSG fi elds tor could save up to $1 million per year on wood crating and of Australia is supplied from a Weatherford manufacturing in-fi eld equipment make up time alone, with the added benefi t plant in mainland China, where it is individually packaged of promoting a commitment to safety and the environment. into wooden crates and shipped by boat to a storage facility in The fi rst shipment of zonal isolation equipment using the Chinchilla, Australia. The wood used in each crate is specially new steel cradling system left China in late 2014, and was treated to conform to Australian Quarantine regulations. This successfully delivered to the operator’s rig site in Australia treated wood is diffi cult to source, costly to purchase and poses with no damage or issues. This new cradle design, coupled a negative impact to the environment. with the proven well integrity benefi ts that the zonal isolation The wooden crates are then transported to the rig site, where equipment provides in CSG wells, continues to give Australian each component of zonal isolation equipment—typically an operators the piece of mind that comes from partnering with a ACP, stage cementing tool and fl oat equipment—is unpacked fully integrated well integrity service provider. AOG Content is copyright protected and provided for personal use only - not for reproduction or retransmission. aogdigital.com For reprints please contact the Publisher. March · April | AOG 27

026_AOG0415_Geo2_Weatherford.indd 27 4/2/15 11:53 AM Championing Australia’s energy industry

Championing Australia’s energy industry

James Parsons, Swire Oilfield Service’s general manager for Australasia shares his view of the current Australian oil and gas market.

n a dramatically changing market where oil prices have taken a turn for the worse for what many analysts are predicting to Ibe a long haul, a number of major players have taken drastic measures to weather the storm. With cutbacks on the cards and projects under review there’s never been a greater emphasis on efficiency. As the industry braces itself for significant head- winds, efficiency means survival.

Market overview The current market is in a state of metamorphosis. It’s a simple story of supply and demand. The growth rate of shale in the US took the market by surprise and suddenly the world’s insa- tiable demand for oil and gas was overtaken by supply. When it became clear that OPEC countries wouldn’t reduce output to counter the price dip, a seismic shift began to emerge. Although operators are being forced to accept significant write-offs for current LNG projects, and budget cuts have been confirmed across the oil and gas board in 2015 and beyond, Australia’s position as one of the world’s largest LNG exporters will help the country stand firm against the looming threat of sustained low prices. HSBC recently predicted that by 2018 the country would hold the accolade of the world’s foremost exporter of LNG with capacity of more than 80 MPTA. In the short term the oil price slump is having a positive effect on the overall economy, with analysts predicting a boost in household income and company’s like Virgin Australia report- ing a significant increase in revenue as a result of the price plummet. And as a net importer the lower oil price will see Australia get much more for its dollar. For businesses in the Australian supply chain, like Swire Creating more efficient businesses Oilfield Services (SOS), the oil price uncertainty presents an So how will we, as an industry, adjust to the current climate opportunity. Our country’s resources and exports are solid, and come out the other side better equipped to deal with what but supply chain processes across the industry are wasting the market throws our way? unfathomable amounts of cash – cash that would help position It comes down to a collective approach of getting back to explorers and producers well to weather the current climate. basics to introduce a new level of efficiency that will counteract Content is copyright protected and provided for personal use only - not for reproduction or retransmission. 28 AOG | March · April 2015 For reprints please contact the Publisher. aogdigital.com

028_AOG0415_Geo3_Swire.indd 28 4/2/15 12:18 PM Championing Australia’s energy industry

The second phase is where the pressure of cost and efficiency is sustained over a longer period of time, giving operators greater incentive to challenge supply chain structures and processes. In this critical phase, it’s the responsibility of the supply chain to really bolster efficiency by innovatively reconfiguring itself and streamlining processes until they are at the leanest and safest they’ve ever been, and to challenge the scope of their services to introduce more sustainable efficiencies. This is the phase where we as in industry, in Australia, will reach a positive critical mass. Although the Australian industry has evolved to be at the top of its game in many ways, it’s not without the inefficiencies that are inherent with accelerated growth. You only have to look at other industries with narrower profit margins to realize what can be achieved when financial health is under scrutiny. In the past, addressing these issues has taken a back seat while a thriving market was firmly focused on safety, maximizing production and exploring new territories. This new era allows us the time to reset ourselves and prepare for a very different environment, emerging as a leaner, meaner and ultimately safer supply chain that allows the industry to continue to solve the challenges it comes up against.

Positive change Against a backdrop of uncertainty, it’s time for the service sector to embrace flexibility and innovation, to look inwardly and to collaborate with peers as well as customers to create a more efficient industry. An industry that will allow Australia to develop its significant resources and to help our country and communities strive in the long term. We should be looking at other industries and the challenges they have faced to learn from businesses that have already been squeezed by economic downturns and the complexities of import and export competition. Ultimately, we should see the oil price uncertainty as a cata- lyst for positive change. AOG

James Parson is Swire Oilfield Services general manager. Originally from Launceston, Tasmania, he is a graduate of the Royal Military College of Australia. After spending 15 years as an officer in the Australian army, retired rank of Major, he

Image from iStock spent several years in the shipping and maritime industries. He joined Swire in the effects of lower budgets. 2012. Parson holds a BSc, M.Bus from UNSW, James Cook In my experience, initial efforts to improve efficiencies in University and University of Newcastle, and subsequent times like these are typically conducted in two phases. masters level awards in innovation management through First, a relatively basic approach is adopted by reducing the study at Norwegian School of Management (BI), Stanford and overall costs of the existing supply chain and its contributing Berkley University in US, and Nanyang University in elements. Content is copyright protected and provided for personal Singapore.use only - not for reproduction or retransmission. aogdigital.com For reprints please contact the Publisher. March · April | AOG 29

028_AOG0415_Geo3_Swire.indd 29 4/2/15 11:59 AM GEOFOCUS AUSTRALIA/NEW ZEALAND

UWA molds next generation engineers down under

The University of Western Australia hile the North West Shelf is a significant oil and gas production area in Western Australia, with (UWA) tells us how they have been Wdeep and expansive untapped reserves that will power energy needs for years to come, it offers some of the most central to the research and development intriguing seabed challenges. At UWA’s Centre for Offshore Foundation Systems (COFS), underpinning the energy sector and researchers led by Professor Mark Cassidy are developing new benchmarks for deepwater engineering and exploration to un- education of aspiring professionals in ravel the complexities and unique characteristics of the North West Shelf ocean floor. Western Australia. After 22 years in operation, COFS is today recognised for its groundbreaking geotechnical centrifuge modeling technology, which provides accurate simulations in a safe experimental environment that ultimately helps to make mobile oil and gas platforms safer and more efficient. “Our aim at COFS is to develop engineering analysis methods that engineers can use in the daily design of offshore oil and gas infrastructure,” said Professor Cassidy. “We integrate miniature experiments, sophisticated numerical analysis and theory in order to ensure that our offshore founda- Left: Aerial shot of UWA. tions are stable.” Above: Prof. Mark Cassidy.

AU$100 billion resource exports Western Australia is a major global resources economy with its capital city Perth ranked as the nation’s most important energy city. The state’s resource exports have reached AU$100 billion (US$76.4 billion) per year and this growth has attracted world renowned expertise to UWA. Through the university’s Energy and Minerals Institute (EMI), academic team with the industry and government work on global projects to develop new technologies for today’s resource challenges. EMI has a vision to advance knowledge and create solutions that deliver safe, enduring value for the world from its energy Content is copyright protected and provided for personal use only - not for reproduction or retransmission. 30 AOG | March · April 2015 For reprints please contact the Publisher. aogdigital.com

030_AOG0415_Geo4_UWA.indd 30 4/2/15 12:06 PM and mineral resources. The institute connects UWA’s talent and capability across the energy and minerals value chain, builds multi-disciplinary networks and strengthens partnerships with industry and external stakeholders.

Petroleum research at UWA UWA’s Centre for Energy Geoscience, led by Professor David Lumley, encompasses a broad range of geology, geophysics and engineering expertise related to subsurface characterisation and monitoring of the Earth. This involves research that includes advanced computational 3D and time lapse The UWA Geology Building 4D seismic imaging of subsurface reser- Prof. David Lumley voirs and fluid flow, detailed core, log and students into the field. It has helped with the research into outcrop-scale reservoir geology analysis, depositional systems, gas process engineering being done at UWA to improve the sedimentology and bio sequence stratigraphy, and basin scale processes by which the gas is extracted and converted into a structural and tectonic evolution studies. saleable commodity. The center’s research has applications to hydrocarbon explo- Professor May, who also works in UWA’s Centre for Energy, ration and recovery, unconventional energy resources, subsur- leads the research in hydrocarbon process engineering, adsorp-

face CO2 sequestration, plate tectonics and earthquake seismic- tion, CO2 sequestration, flow assurance, and the measurement ity, environment and climate change. and prediction of fluid properties. The centre enjoys collaborations with academic, government and industry colleagues across Australia, as well as interna- Postgraduate engineering tional universities and research labs. A course unique in its focus on downstream oil and gas pro-

It also contributes to investigations on how to sequester CO2 cessing, UWA’s master of engineering in oil and gas provides a

in an environmentally sustainable way. UWA’s CO2 Processing comprehensive skill set for engineering graduates wanting to and Sequestration Laboratory is a world class carbon storage work in the global oil and gas industry. research facility. Designed in collaboration with the university’s industry This facitlity is also an important component of Australia’s partners to match current energy trends, the course synchro- national efforts to achieve carbon reduced resources and en- nises with the rapidly expanding natural gas and liquefied ergy economy. natural gas industries. From this year, UWA is offering a geophysics honors degree, Students will also learn the principles of project planning focused on interdisciplinary study of the Earth, oceans and and management and take part in a unique hydrocarbon field atmosphere, using the quantitative methods of physics, math- development project. ematics and computer science. Oil and gas laws Chevron and UWA partnership The regulation of oil and gas operations and the contracts In 2009, a young professor, Eric May, was appointed as the first underpinning them are becoming increasingly complex in the UWA Chevron Chair in Gas Process Engineering. This move country. that signaled a major partnership between a university and the In 1990, the Centre for Mining, Energy and Natural Resourc- petroleum industry, injected significant funding into teaching es Law (CMENRL) was established in UWA’s Faculty of Law a new generation of gas engineers. School, in response to the steadily increasing profile of mining Chevron Corp.’s multi-million dollar investment was used and oil and gas exploration in Western Australia. for postdoctoral research and scholarships to attract the best The center has more than three decades of experience in arranging highly successful workshops and seminars in oil and gas law, environmental law, project development law and corporate governance. CMENRL offers formal education courses at undergraduate and postgraduate levels, as well as executive education and training. The law faculty and CMENRL offer the masters of mining and energy law and master of commercial and resources law. The team also contributes to new postgraduate programs with a focus on public and private international law, including policy and regulation, as well as Chinese law. The workshops forming part of these courses, which are available both to postgraduates and executives, are designed for professionals who want to progress in the industry. They are Prof. Eric May highly practical and use real life examples. AOG Content is copyright protected and provided for personal use only - not for reproduction or retransmission. aogdigital.com For reprints please contact the Publisher. March · April | AOG 31

030_AOG0415_Geo4_UWA.indd 31 4/2/15 12:06 PM Solutions Wärtsilä introduces two-stroke engine produced in China The fi rst Wärtsilä dwt multi-purpose vessel currently under construction at the two-stroke engine Ouhua shipyard on behalf of China Navigation Co (CNCo). The with a high pres- ship, which is scheduled for delivery in the 2Q 2015, has been sure SCR (selec- designed to allow su cient space for the fi tting of the SCR. tive catalytic The SCR system for this application has been jointly devel- reduction) system oped by HHM and Winterthur Gas & Diesel (WinGD), the joint manufactured venture company of Wärtsilä and China State Shipbuilding in China has Company (CSSC), using a basic design concept from Wärtsilä been introduced. which has been adapted to suit the particular requirements The system is of the engine and ship. Wärtsilä has been producing its high fi tted to a 5-cyl- pressure NOx Reducer SCR systems since the late 1990s. The inder Wärtsilä RT- system injects a solution of urea into the exhaust gas fl ow fl ex58T-D 2-stroke, to react with and eliminate the NOx emissions. It is a high low speed engine produced at the Hudong Heavy Machinery pressure process because the reactor is located between the (HHM) facilities. The SCR reactor was also manufactured by engine exhaust valves and the turbocharger turbine inlet. This HHM. This is the fi rst SCR system that complies with the IMO’s provides the most compact and e cient system without com- Tier III regulations for engine emissions of nitrogen oxide (NOx). promising engine performance or impacting fuel consumption. The Wärtsilä engine with SCR is to be installed in a new 22,000 www.wartsila.com

• ABB INTRODUCES AZIPOD D Service, and M/LWD service capable ABB unveiled of operating in harsh environments up a new addition to 392°F and 25,000 psi. Quasar Pulse to its Azi- Service can deliver directional, gamma pod electric ray, PWD and vibration data for well- propulsion of- bore placement in high temperature fering, the Azi- and pressure zones. The service allows pod D, which access to reserves that conventional tools provides cannot reach and can eliminate the need designers and for mud chillers and “staging” to cool ship builders down tools, saving valuable rig time and WELLTEC RESTORES PRODUCTION with increased improving effi ciency. Tool sizes include WELL WITHOUT WORKOVER RIG design fl exibility in order to accom- 4-3/4 and 6-3/4in, allowing it to perform Welltec has successfully demonstrated modate a wide range of hull shapes and in wellbores up to 9-7/8in in diameter. an alternative to rig based workovers. propeller sizes, as well as simplicity With more than 50 successful runs and Offshore Timor Sea, an infl atable packer of installation of the propulsion units. nearly 90,000 feet drilled, the Quasar got stuck passing through a fl apper The Azipod D requires up to 25% less Pulse Service has delivered measure- valve. At the same time, a hold-open installed power. ABB this is due to its ments around the world and has been sleeve dislodged during the migration new hybrid cooling, which increases the tested in challenging environments in and landed on top of the valve. Clear- performance of the electric motor by up the Middle East, Asia Pacifi c and uncon- ing the well took half the expected time, to 45%. Other benefi ts of the Azipod D ventional fi elds in North America. utilizing a fl eet of patented technology propulsion system also include superior www.halliburton.com including Well Tractor, Well Miller, and maneuverability, competitive investment Well Stroker. The operation was per- cost, ease of service and maintenance, formed without a workover rig reducing and a signifi cant performance increase costs. “This was a job well planned and compared to mechanical thrusters. ABB’s executed. The well was brought back on- Azipod D propulsion power ranges from line at 100 MMscf/d fl ow rate after two 1.6-7MW per unit. years of inactivity. 17 runs were con- www.abb.com ducted with zero misruns and no HSE or quality incidents, which is an outstand- HALLIBURTON LAUNCHES ing achievement,” said the completions QUASAR PULSE SERVICE and well intervention coordinator for Sperry Drilling, a Halliburton business ConocoPhillips. line, has begun providing Quasar Pulse www.welltec.com Content is copyright protected and provided for personal use only - not for reproduction or retransmission. 32 AOG | March · April 2015 For reprints please contact the Publisher. aogdigital.com

032_AOG0415_Solutions.indd 32 4/2/15 10:39 AM Subsea Innovation and E ciency Delivering Economic Success

www.deepwaterintervention.com

Contact Information Conference: Sponsorship & Exhibits: Jennifer Granda Gisset Capriles Tel: +1 713-874-2202 Tel: +1 713-874-2200 Content is [email protected] protected and provided for personal [email protected] only - not for reproduction or retransmission. For reprints please contact the Publisher.

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DWI_oe_prt_0315_180_97x250_82_fp.indd 1 2/23/15 8:52 AM existing facilities. In recent months, the ﬁ rm also secured other smaller contracts for mooring, jackup installation and offshore pipe- Contracts line and subsea work in the Asia Paciﬁ c region, boosting its order book to over Valmec’s rst Talinga Gas contract $1.8 billion. “We are pleased to have clinched another major project from the same client in India this month. Going into the ten- der, we exercised stringent cost analysis and took into consideration the inhouse and shared resources within the group,” said CEO, Francis Wong.

• BOS GETS MYANMAR CONTRACT Moattama Gas Transportation Co. (MGTC) has hired Bibby Offshore Singa- pore (BOS) to provide remote operated vehicle (ROV) pipeline inspection, remedial work and associated project manage- Valmec Services has been awarded its fi rst contract to provide services to the ment offshore Myanmar Talinga Gas Processing Facility, operated by Origin Energy. This follows the com- Bibby Offshore will supply its DP2 pany’s acquisition of Exterran Australia in December 2014. ROV support vessel, Bibby Spring. The Located 30 km southeast of Chinchilla in Queensland, the Talinga processing vessel is equipped with dual ROVs, plant plays an integral part to the Australia Pacifi c liquefi ed natural gas (LNG) including the latest 150HP, 3000m-rated project. SMD Quasar, and complemented by a “We are delighted to have secured such a signifi cant service and maintenance Lynx lightweight ROV suitable for dive contract on the back of the acquisition of Exterran Australia and to be involved in support, inspection and repair. this project for Australia Pacifi c LNG and Origin,” said Valmec managing director, Earlier this year, BOS secured a con- Steve Dropulich. tract with Singapore-based subsea ser- “It will be delivered by our Queensland site-based team and Dalby workshop vice provider Seascape to provide ROV services team, supported by our project construction operations. • services for its DP2 dive support vessel the Windermere. • IKM SUBSEA BAGS plete deck equipment packages for a pair ROV WORK IN THAILAND of supply and oil recovery vessels. • MCDERMOTT SECURES IKM Subsea Singapore will deploy its Each equipment package includes FMC JANGKRIK GIG Merlin WR 200 remote operated vehicle a medium pressure anchor windlass McDermott International was awarded (ROV) onboard Solstad Offshore’s derrick winch, capstans, tugger winches, stor- its fi rst contract by FMC Technologies lay barge Norce Endeavour for construc- age reels, a provision crane and power to provide subsea safety isolation valve tion support projects offshore Thailand. packs. module fabrication services for the Jang- “IKM Subsea has a history with Sols- It will be installed on the 12,000 bhp, krik fi elds located offshore Kalimantan, tad dating back to 2009 when we had the 150-tonne bollard, 78m anchor handling Indonesia. fi rst Merlin WR 200 onboard their vessel pull vessels, currently under construc- Scope of work includes fabrication in Norway,” said Mahesh Govindan, gen- tion for Sentinel Offshore Ltd. of approximately 3200-tonne of subsea eral manager, IKM Subsea Singapore. “Having added the Hatlapa and Triplex manifolds and subsea safety isolation “This was a stepping stone for IKM into brands to our portfolio, we are able to valve modules to be installed in water the ROV market and we have grown ever offer complete, proven and competitive depths ranging from approximately 329- since. We are proud to continue our sup- solutions for the mid and large sized an- 1640ft. port to Solstad in the Asia Pacifi c region chor handling tug supply vessel market,” “Our demonstrated track record in and hope this would be a successful and said Francis Wong, head of sales and the delivery of customized, high-quality long lasting partnership.” marketing, MacGregor. subsea solutions from our Indonesian Previously, Merlin WR 200 was con- fabrication facility on Batam Island, tracted by Eni Indonesia to provide ROV • SWIBER WINS IN INDIA including the Gorgon subsea structures services onboard the company’s drill rig Swiber Holdings Ltd., clinched a US$333 fabrication project and the Ichthys engi- Scarabeo 7 used to drill exploration and million agreement for engineering, pro- neering, procurement, construction and completion wells in Indonesia. curement, installation and construction installation project, positions us strategi- (EPIC) services in India. cally to support FMC Technologies in • MACGREGOR’S CHINESE Headquartered in Singapore, this fabricating the Jangkrik complex subsea SHIPBUILDER ORDERS contract will see Swiber transport and infrastructure,” said Hugh Cuthbertson, Chinese shipbuilder Wuhu Xinlian install submarine pipelines, along with McDermott VP and general manager, awarded MacGregor to supply two com- engineering works and modifi cation of Asia Pacifi c. • Content is copyright protected and provided for personal use only - not for reproduction or retransmission. 34 AOG | March · April 2015 For reprints please contact the Publisher. aogdigital.com

034_AOG0415_Contracts.indd 34 4/1/15 10:24 PM Activity GE opens Western Australia facility

Designed to service subsea projects, GE’s new oil and gas unit is located in Broome, the Kimberley region of Western Australia. It will support the o shore installation phase of INPEX-operated Ichthys LNG project by providing local support for preparation, storage and routine maintenance of subsea equipment supplied by the company. “The establishment of the Broome facility represents an exciting milestone for our business in Australia,” said Mary Hackett, regional director for Australia, New Zealand and Papua New Guinea of GE Oil & Gas. “We are proud to be able to provide customers a solution that will mean better and more e cient operational and maintenance support for crucial o shore LNG development. It is great to deliver that excellence as part of the Broome community.” The Broome location was chosen for its proximity to the o shore operations and to complement INPEX’s existing o shore support infrastructure in Broome. INPEX also has a dedicated o ce space at the new facility. •

■ CHEVRON SELLING clients,” said the group’s business unit its increased activity in Asia and the AUSTRALIAN BUSINESS manager, Simon de Koning. Middle East. Chevron’s subsidiary Chevron Global Before this, the group partnered with The Gurgaon-based operation will Energy entered into an underwriting Thailand’s OPS Oilfi eld Equipment and be led by manager Arjun Bhakhri, who agreement to sell 50% of its interest in Services Ltd., to service the region with brings 10 years’ of oil and gas recruit- Caltex Australia Ltd. (CAL) to generate cargo carrying units, including dry ment experience in India and the Middle cash to support its long-term priorities. goods, open tops, half heights, skips and East. The supermajor expects that these shares cargo baskets. “As a company, Frontier has a long to be sold to a broad range of Australian pedigree of working with clients in and global equity market institutional ■ SWIRE AND ALTUS Asia and the Middle East,” said Paul investors. OPEN NEW BASE IN MALAYSIA Radcliffe, Frontier International’s manag- Chevrons says it will continue to en- Swire Oilfi eld Services and Altus Oil ing director. sure a reliable, high-quality supply of & Gas Malaysia Sdn Bhd opened a “Our investment in this offi ce is a suc- product is available to the Australian new base in Kemaman, a district in cinct illustration of our commitment to petroleum market company to sup- Terengganu situated on the east coast of ensuring we continue to provide service ply to its retail and reseller franchise Malaysia. in oil and gas recruitment to our clients network and is committed to seeking “The opening of our new base in in these areas.” long-term relationship opportunities Kemaman represents a signifi cant expan- with CAL. sion of our presence here in Malaysia ■ SPEEDCAST ACQUIRES and has come as a direct result of in- HERMES DATACOMMS ■ FERGUSON EXPANDS creased demand for our units, indicating The acquisition of Hermes Datacommu- MALAYSIAN FLEETS a strong market in South East Asia,” said nications International Ltd., will create Ferguson Group Singapore expands Alister Beck, general manager South East a new global force providing advanced in the region, with an increase in Asia, Swire. communications and IT services to the its Malaysian based fl eets, Labuan In addition to offering a range of ser- energy sector, said Hong Kong-based Supply Base (ASB) and West Malaysia’s vices including refurbishment, main- SpeedCast. Kemaman Supply Base (KSB). tenance, inspection and logistics, the “This game changing acquisition “We are moving workspace modules, new venture will also help boost local opens a new chapter for our energy as well as reefer units to our Malaysian employment opportunities. business, greatly expanding the scale, bases. Coupled with the wide range of scope and capabilities of our busi- cargo carrying units available from all ■ FRONTIER OPENS OFFICE IN INDIA ness,” said Pierre-Jean Beylier, CEO, our partners Ferguson Group Singapore Frontier International’s new offi ce in SpeedCast. will be ideally located to offer a faster India, the company said, signifi es further “Hermes Datacomms’ experience ser- response time for deploying assets to international expansion to support vicing oil and gas customers is an ideal Content is copyright protected and provided for personal use only - not for reproduction or retransmission. aogdigital.com For reprints please contact the Publisher. March · April | AOG 35

035_AOG0415_activity.indd 35 4/2/15 12:14 PM fit for SpeedCast. It brings us capabilities its share of future costs. Production Research Institute of Sinopec and relationships that would otherwise Under the second MOU agreement, (PEPRIS) on January 30. be difficult and long to acquire.” Loyz will transfer and assign its Indian The combined capabilities of assets, such as production sharing con- ■ BMT OPENS JAKARTA ENVIRON- SpeedCast and Hermes Datacomms tracts of the Modhera and Baola fields to MENTAL TESTING FACILITY include an integration of services such as SONG. In turn, SONG will commit US$1 BMT Asia Pacific opened its first envi- satellite communications, fibre connec- million to utilize on the assets to com- ronmental testing facility in Jakarta, tivity, radio services, oilfield communi- plete the work program, lifting produc- Indonesia. Certified to ISO17025 by cation services, 24/7 real-time monitor- tion and monetizing the reserves at the Komite Akreditasi Nasional (KAN), ing and rapid customer response. two fields. Indonesia’s national accreditation body, the new laboratory provides high-quality ■ LOYZ, SUN PETROCHEMICALS ■ SINOPEC ESTABLISHES technical testing services for BMT’s oil INK TWO MOUS SHALE OIL CENTER and gas clients including: noise, ambient Singapore-based upstream firm Loyz China’s National Energy Administration air quality, water quality, toxicity and Energy, and India’s Sun Petrochemicals approved Sinopec’s National Shale Oil emissions. signed two binding memorandums of Research and Development Center. Previously outsourced, these techni- understanding (MOUs). The Indian Sinopec says that with the rapid devel- cal testing services have been brought petrochemical manufacturer, through opment of unconventional energy includ- in-house to better support BMT’s envi- its exploration and production division, ing shale oil and gas in recent years, a ronmental assessment and consenting of- Sun Oil and Natural Gas (SONG) will new wave of energy revolution has been fering, which includes statutory compli- work on upstream projects together triggered around the world. Shale oil, ance, environmental impact assessments with Loyz. following shale gas, becomes another and decommissioning studies. The first MOU will see Loyz jointly bid focus of global unconventional resources Backed by experienced in-house for upstream projects with SONG who exploration and development. The estab- environmental experts, training pro- will bear the entire costs and expen- lishment of the center is of historical and grams and rigorous QA processes, the diture of Loyz’s participating interest practical significance to China’s shale oil laboratory operates according to industry share. In the event there is net revenue development. standards. BMT says that this is particu- accruing to the project, Loyz will be en- The center’s inauguration and first larly important in light of increasingly titled to its carried participating interests academic committee conference was stringent government regulations for share of revenue, plus be responsible for held in the Petroleum Exploration and environmental monitoring.■ Custom REPRINts Ad Index 2015 Deepwater Intervention Forum Take Advantage of your Editorial Exposure deepwaterintervention.com ...... 33

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AOG_0415_Ads.indd 37 4/2/15 9:53 AM RXOE7508 AOG Advert - Master3_v2.indd 1 24/03/2015 10:23 Numerology

The number of rigs currently in service 83 MTPA in Southeast Asia. See page 12.

The number of technicians needed for recruitment on commissioning projects 80-100 See page 18.

Australia’s expected LNG million tons production capacity by 80 per annum 2018. See page 28.

Western Australia’s revenue from resource exports per year. AU$100billion See page 30.

Percentage of energy professionals who believe the industry is 72% male-dominated. See page 20.

The year GE’s new oil and gas unit opened in Broome, Australia. See page 35. 2015 Photo from GE Broome Facility.

Approximate cost of two o shore support US$58million vessels from Nam Cheong Ltd. See page 8.

Distance of Talinga processing plant from the southeast 30km of Chinchilla in Queensland, Australia. See page 34. Photo from Valmec Talinga Gas.

The number of years coal-seam gas reserves could last levels in Queensland, Australia, based on 100 current production. See page 26. Content is copyright protected and provided for personal use only - not for reproduction or retransmission. 38 AOG | March · April 2015 For reprints please contact the Publisher. aogdigital.com

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I would like to receive a YES FREE subscription to AOG No 1. What is your main job function? 3. Do you recommend or approve the Name:Name: (check one box only) purchase of equipment or services? (check all that apply) Job Title: 01 Executive & Senior Mgmt(CEO, CFO, COO, Chairman, President, Owner, VP, Director, 700 Specify Company: Managing Dir., etc.) 701 Recommend 02 Engineering or Engineering Mgmt. 702 Approve Address: 03 Operations Management 703 Purchase 04 Geology, Geophysics, Exploration City: State/Province: 05 Operations (All other operations personnel, . Which of the following best describes your personal 4 Zip/Postal Code: Country: Dept. Heads, Supv., Coord. and Mgrs.) area of activity? (check all that apply) 99 Other (please specify) 101 Exploration Survey Phone: 102 Drilling 103 Subsea Production, Construction (Including Pipelines) Fax*: 2. Which of the following best describes your 104 Topsides, Jacket Design, Fabrication, Hook-up company’s primary business activity? And Commissioning Email*: (check one box only) 105 Inspection, Repair, Maintenance *By providing your fax and/or email address, you are granting AtComedia permission to contact Production, Process Control, Instrumentation, Power you regarding your subscription and other product offerings. May AtComedia contact you 21 Integrated Oil/Gas Company 106 Generation, etc. about other 3rd party offers: 22 Independent Oil/Gas Company 107 Support Services, Supply Boats, Transport, Support 23 National/State Oil Company Ships, etc. Email: Yes No 24 Drilling/Drilling Contractor 108 Equipment Supply EPC (Engineering, Procurement, Construction), 25 109 Safety Prevention & Protection Main Contractor Fax: Yes No 110 Production Subcontractor 26 111 Reservoir Engineering Company Signature (Required): 27 99 Other (please specify) 28 Consultant Date (Required):

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