APRIL 2014 Think Big
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WORLD PIPELINES ® Volume 14 Number 4 - April 2014 APRIL 2014 www.energyglobal.com BRS4703 Risk Cover_WP 02-2014.indd 1 2/10/14 8:16 AM Think big. Size does matter. ROSEN maintains the industry’s most com pre hensive technology portfolio, from hardware to soft ware, as well as the largest tool fleet. Meaning more flexibility for you. www.rosen-group.com 23 68 91 CWORLD oPIPELINESntents | VOLUME 14 | NUMBER 4 | APRIL 2014 03 Editor's comment PIPELAYING CASE STUDIES Corridors of power. 57 Collaborative innovation 05 Pipeline news Alasdair Cowie, Managing Director at Cortez Subsea, UK. Updates on Blue Stream; Iraqi pipeline system; Trans-Anatolian; Moho Nord project; South Stream; and more. EXTREME ENVIRONMENTS REGIONAL REVIEW 62 Working on top of the world John Yates, Marsh, UK. 12 High seas New discoveries bolster the Gulf’s future as a prime production basin, but OFFSHORE WELDING challenges remain, examines Gordon Cope. 68 A suitable habitat Ian Branch, Hyperbaric Welding Operations Manager, Subsea 7, UK. PIPELINE CORROSION 78 Conquering subsea corrosion seasHIGH Robert Walters, The IFL Global Project Director and Chairman of APS, Dubai, New discoveries bolster UAE. the Gulf’s future as a prime production basin, but challenges remain, examines Gordon Cope. 87 A contractor's delight xplorers in the Gulf of Mexico are on a roll. In the last two years, several significant new deposits have been Ing. Sander Hofstee, Seal for Life Industries, the Netherlands. discovered across a wide swath of the Eregion, from the younger Miocene period (an exploration play that is essentially an extension of onshore discoveries), to the more challenging Lower Tertiary anticlinal traps (which sit in deep waters beneath a thick layer of salt). Don't let AC interfere Discoveries and development 91 In December 2013, BP announced it had struck oil in its Gila prospect in the Keathley Canyon region, 300 miles southwest of New Orleans. The exploration well, drilled in 4900 ft of water to a Jayne Bringer, Aegion Corporation, Corrpro, USA. total depth of 29 221 ft, encountered hydrocarbon bearing sands in the Lower Tertiary strata. That same month, Noble Energy announced it had made an oil discovery in its Dantzler prospect, located near its Big Bend and Troubadour discoveries. The exploration well, drilled in 6580 ft of water to a total depth of PAGE 19 234 ft, encountered at least 120 ft of crude in Miocene-aged rock. Noble estimates gross resources at 55 - 95 million boe. It plans to drill at least two more similar prospects this year. ULTRASONIC INSPECTION 12 13 12 95 A new wave Matthew Fleming, Sonomatic, UK. COATINGS FOR OFFSHORE APPLICATION METERING AND MONITORING 19 Covering every angle to cut offshore risk Paul Kleinen, Bredero Shaw, USA. 101 Straight to the point A discussion between Wim Volmer, Senior Product Manager Oil & Gas at NMi, the Netherlands and Eveline Janse, Comorama, the Netherlands. FEATURED IPLOCA MEMBER 107 The hydraulics model David Cheng, PhD, PE, Technical Director, Flow Assurance, Pipeline Engineering Fluor Enterprises, Inc., USA. 23 Featuring Canusa-CPS, ClampOn, CRC-Evans Offshore, FoundOcean, Inc., INTECSEA, Jan De Nul Group, NRI, Online Electronics Group, Saipem, Serimax (Vallourec Group), OFFSHORE Socotherm, Stopaq (Seal For Technology Review Life Industries), and Trelleborg. WORLD PIPELINES ® Volume 14 Number 4 - April 2014 APRIL 2014 ON THIS MONTH'S COVER Reader enquiries [www.energyglobal.com] Bredero Shaw’s Complete Coating Assurance model now includes NEMO (network epoxy modified olefin), a unique high temperature insulation product designed for custom coating of subsea equipment from wellhead to platform. With the addition of NEMO, Complete Coating Assurance can support customers’ deepwater, high temperature 7390 requirements, reducing risks associated with today’s complex offshore projects. ISSN 1472- www.energyglobal.com Member of ABC Audit Bureau of Circulations Copyright© Palladian Publications Ltd 2014. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the copyright owner. All views expressed in this journal are those of the respective contributors and are not necessarily the opinions of the publisher, neither do the publishers endorse any of the claims made in the articles or the advertisements. Printed in the UK. WP_APRIL2014_OFC.inddBRS4703 Risk Cover_WP 1 02-2014.indd 1 25/03/20142/10/14 8:16 11:38 AM EXTREME CONDITIONS. EXTREME COMMITMENT. QUALITY. CONSISTENCY. INTEGRITY. it’s all in the PIPELINE. When you’re installing an offshore pipeline the details are critical. Any mistake costs time and money. That is why you need the committed experts at CRC-Evans. CRC-Evans takes offshore pipeline fabrication to a new level. We’re the only company that manages the complete offshore pipeline process from beveling to welding to coating to inspection. Our dedicated team of specialists helps you boost operational speed, maintain high quality levels and optimize your offshore investment. From shallow to deep-water pipeline construction technologies, CRC-Evans monitors every detail of your offshore systems. No matter where you need an offshore pipeline, no matter when you need it, we’re there. 24/7/365. WHAT’S IN THE PIPELINE FOR YOU? Explore our entire line of offshore services at www.crcoffshore.com CCORRIDORSo OF POWERmment et’s look at the facts. Approximately years and so wasn’t hit as hard. But the EDITOR 30% of the gas that Europe consumes fragility of the Ukrainian link, and the Russian Elizabeth Corner comes from Russia. Some 53% of tendency towards aggression, was very [email protected] Russian gas exports to Europe pass apparent to all recipient countries. Lthrough Ukraine. Ukraine receives a 30% Current unrest in the Crimean peninsula MANAGING EDITOR James Little discount price for the natural gas it gets from – where Russian forces have taken control [email protected] Gazprom, as negotiated in a deal with now- – means that Ukraine’s geo-political EDITORIAL ASSISTANT deposed, pro-Moscow President Yanukovych. position and gas pipelines are once again Hannah Priestley-Eaton This deal may soon expire, as relations under the microscope in Europe and [email protected] between Russia and Ukraine deteriorate. beyond. At the time of writing, there has EDITORIAL ASSISTANT Gazprom insists that it is forced to hike been little interruption to the considerable Rosalie Starling prices because, it claims, Kiev owes commodities infrastructure that resides in [email protected] US$ 1.55 billion for gas supplied in 2013 and Ukraine (Ukraine is not only a vital link in ADVERTISEMENT DIRECTOR the first few months of 2014, among other the gas chain, it is a key supplier of wheat Rod Hardy debts. Gazprom cites and corn, metals and [email protected] Kiev’s inability to meet minerals). ADVERTISEMENT MANAGER contractual obligations Crucially, since the Chris Lethbridge [email protected] as reason to withdraw ALTHOUGH rows of 2006 and 2009, we the 30% discount and have seen the twin Nord SALES EXECUTIVE RUSSIA HAS Chris Gardner Russia has threatened to Stream pipelines built [email protected] sue for up to BEGUN through the Baltic Sea, and PRODUCTION US$ 16 billion. now the South Stream Stephen North Over the past BUILDING pipeline is in the works. [email protected] decade or so, I’ve been Nord Stream bypasses CIRCULATION MANAGER writing about how Russia THE SOUTH Ukraine and has cut Victoria McConnell often uses Ukraine as a Europe’s proportion of gas [email protected] pawn it its own political STREAM exports via Ukraine by half REPRINTS/MARKETING ASSISTANT games – turning off the (at present, only 15% of Catherine Gower gas tap, or resetting price PIPELINE, Europe’s gas relies on [email protected] tariffs whenever it suits. Ukrainian infrastructure). WEBSITE MANAGER Over New Year in IT LACKS South Stream will also Tom Fullerton [email protected] 2005/2006, Gazprom IMPORTANT bypass Ukraine, routing announced a price hike, under the Black Sea, and WEBSITE EDITOR 3 Callum O’Reilly from US$ 50/1000 m to EU APPROVALS will lead to even less [email protected] US$ 230. Kiev rejected European dependence on the price and Russia Ukraine’s pipelines. DIGITAL EDITORIAL ASSISTANT Katie Woodward turned the gas off. Europe felt the effects: at Gazprom has been busy announcing some [email protected] the time, Ukraine carried 25% of Europe’s gas major deals for South Stream: Saipem has PUBLISHER requirement and, of that, 80% was secured deals worth e2 billion to build the Nigel Hardy transported via Ukraine. Many European first stage of the subsea pipeline; and pipes countries reported low gas pressure in their will be provided by Japan’s Marubeni, Itochu Palladian Publications Ltd, 15 South Street, Farnham, Surrey, own pipelines as the shut-off’s consequences and Sumitomo, as well as Russia’s OMK and GU9 7QU, ENGLAND spread across Europe. Severstal. Tel: +44 (0) 1252 718 999 Then, at New Year 2008/2009, another Interestingly, reports out in mid March Fax: +44 (0) 1252 718 992 spat: Gazprom demanded a price hike, Kiev suggested that South Stream talks were on Website: www.energyglobal.com Email: [email protected] said ‘no thanks’ and Gazprom began pumping hold politically, until tensions in the Crimea only enough gas to meet the needs of cooled: the European Commissioner for Annual subscription £60 UK including customers beyond Ukraine. Shortly thereafter, Energy, Guenther Oettinger, told press that postage/£75/e110 overseas (postage airmail)/ US$110 USA/Canada (postage airmail). Special Ukraine was accused of siphoning off gas discussions with Russia on the pipeline were two year discounted rate: £96 UK including meant for European customers and Gazprom suspended.