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OMC2013, anti-crisis recipes A talk with the chairman, Innocenzo Titone A stormy sea where the helmsman must hold a steady course-that is what the international economic crisis is like. It is in this difficult context that Ravenna’s Offshore Mediterranean Conference 2013 opens, and the chairman yet again this year is Innocenzo Titone, a man with a long experience in the world of the upstream, a man well-acquainted with North Africa, where he held positions of great responsibility for Eni. Here we are at the opening of the 11th edition of the the importance OMC Offshore Mediterranean Conference. This year’s conference enjoys as the theater for is taking place at a time of profound uncertainty from all cultural interchange in points of view. The world economy is in crisis, the Middle the Mediterranean, even InnocenzoDAY Titone, 3 East remains in turmoil, even the euro seems to vacillate. in moments of strong OMC2013 Chairman Still, the OMC continues to grow in the number of exhibitors geopolitical tensions. As and delegations present. What is the secret? in all the past editions, an important contribution will be given We are always careful to respond to changes in the national by the technical sessions and specialist workshops which will and international energy scene. This year the theme of the confront technological evolution, indicating what tools are most plenary session is “Charting a course in a changing sea”. necessary to face these challenging difficulties. OMCNEWSThe maritime metaphor fits the economic crisis we are tra- You are an Eni man, having held positions of great 11thversing, Offshore because it is Mediterraneanlike a storm, and to come Conference through it responsibility • Ravenna, in Libya Italy and A •lgeria. 22 HowMarch do you 2013 see the we must keep our course steady. Here strength comes from current situation in those countries? Is the worst over union. This edition of the OMC will once again be a meeting or yet to come? place for the highest political and industrial spheres, both The democratization of a country is a long and difficult nationally and internationally. In Italy, despite the uncertain- process, in an advanced phase in some countries, in ties of the current political situation, we can acknowledge positive evolution in others. It seems to me that they are that the Monti government has done a good job in its effort headed in the right direction. These countries are truly to elaborate, finally, a national energy strategy, gathering in contributions from the various stakeholders. Unfortunately, there is too little time technically for the various legislative Interviews procedures needed to enact the bill, so the final document Brun (Shell E&P) can only represent a nonbinding synthesis of the outgoing Italy’s strategic role for upstream page 2 administration’s view of energy matters. However much it Lockhart (Eni E&P) might be improved, it nonetheless represents a valid point The eastern Mediterranean, engine of Europe page 7 of departure for starting a discussion about our country’s DAY 1 OMCNEWSfundamental energy 2013 themes. On the international front, the Focus presence of the Egyptian delegation, the Libyan delegation, Levantine basin, big opportunity page 12 the Algerian delegation and the delegation from Irak confirm

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intent on establishing a solid democratic basis economy in full respect for safety, the environment, local DAY 3 on which to build social and economic progress culture and traditions, responding positively to the needs in an orderly way. In my years in North Africa, and concerns of the area around them. I was able to appreciate, in frank and serene What attention are young people being given? OMCNEWS 2013 exchanges founded on mutual respect, not only my In addition to the traditional encounters between companiesDAY 2 V IE W interlocutors’ solid technical training but also their and university students, the “student arena”, which in the OMCNEWS vast culture based on ancient traditions which then past has enjoyed great success both with operators and the personally enriched me. This makes me look at the participating universities, this year there will be something 11th Offshore Mediterranean Conference • Ravenna, Italy • 22 March 2013

INTER future optimistically. new: the “student contest”. This is a competition organized What will be the principal themes dealt with by SPE Europe (Society of Petroleum Engineers) spread during this edition of the conference? over two days. The students coming from various EuropeanDAY 3 OMCNEWS 2013 In the context of exploration, there will be a focus universities and polytechnic institutes will present their own on the Eastern Mediterranean, an area of great importance research to experts in the sector. The authors of the best for the oil industry because of the significant discoveries papers will be awarded prizes with participation in the SPE of hydrocarbons which will certainly be of vital interest in International Student Contest which will be held during the coming years. It is estimated, in fact, that there are reserves annual SPE conference in the USA. for about 3,600 billion cubic meters of gas and a few billion This year there will also be a session coordinated by barrels of crude in areas offshore Lebanon, Syria, Israel, Animp-Isa, the national association of firms that manu- Cyprus and Egypt. Two sessions will then be dedicated to facture industrial equipment. What will the subject be? OMCNEWS 2013 non-conventional resources (shale gas and shale oil) which ThisDAY is 1another new feature. We thought of adding specialist are having an effect and will continue to have an effect on workshops to the program of technical sessions to make it the global market. Some papers from the USA will present possible for firms which produce goods and services to the most recent technological developments concerning present their own anti-crisis contributions. Companies from improvement of these fields’ productivity, minimizing, at this sector will present innovative systems and solid new the same time, their environmental impact. That debate technologies to meet the growing needs of oil companies. OMCNEWS 2013 is of definite interest because of the fears that fracturing TheDAY workshop 2 coordinated by Animp, dedicated to the theme is encountering in Europe. In addition, the latest frontiers of automation, will present systems for improving production, of high technology in E&P will be discussed. A recent maximizing energy savings, and insuring personal safety and ISPO survey shows that public opinion is either ignorant environmental protection. An analogous theme, linked to high or worse, thinks that oil activities have a low technological specialization, is represented by the workshop organized OMCNEWS 2013 content. It is precisely the oil industry that gives birth to by AtenaDAY 3 dedicated to developments and progress in the the most interesting prototypes, which are then adopted planning and operation of new service vessels, increasingly for common uses. Gas and oil have always generated the operating in extremely challenging environments. real push for technological research, especially in relation Finally then there will be the awards … to robots, nanotechnologies and cloud computing, but As in past years, on the last day of the conference there will not only those. As well as discussing the new frontiers of be awards given to the best papers, the one with the best E&P technology, this edition will host a special session technological content and one reserved for young talents, on social responsibility. Eni, Shell, Total, Assomineraria and three for the exhibition stands, specifically for the best and Halliburton will present case histories of projects technological content, for design quality and for the best undertaken in the countries where they operate. Oil overall presentation. companies and service companies possess the technology Azzurra Pacces and the know-how to promote overall growth of the local

An iron lady behind the scenes Behind the scenes of the Offshore Mediterranean Conference there is an iron lady, one who has for a long time dealt with the conference’s organization and management, including coordination of contents and contributions during the plenary sessions and the countless technical meetings. Her name is Laura Antonelli, member of the steering committee of OMC2013, ever attentive to the needs of all guests of all nationalities, ready to handle any hitches or unforeseen obstacles, without losing Laura Antonelli, steering committee sight of the finest strategies of communication to increase each edition’s international prestige. member OMC2013 “I am particularly proud of the Student Arena, launched in 2009, to give young people about to enter the workforce the possibility of interacting with companies directly. It began a bit by chance, seeing so many individual students timidly approaching the stands to leave their curriculums - Antonelli reminisces - so I thought of organizing ways to bring students from various universities to Ravenna”. The initiative has been very successful and continues to bear fruit. “The response was great, both from universities and from companies, which have supported it economically as well”. In addition to students, she has given wide attention to all forms of research. “Recently the Omc joined the OnePetro Online Library (www.onepetro.org), an internet platform presenting the best newspaper articles and information useful for the E&P business - Antonelli explains - and thanks to this relationship all the papers presented during the 11 editions of the conference have a further visibility, which has already shown its utility”. As in the past, each paper presented during the conference can also be acquired through the platform of the Conference at http://shop.omc.it. 3 DAY 1 DAY 2 OMCNEWS OMCNEWS 11th Offshore Mediterranean Conference • Ravenna, Italy • 20 March 2013 11th Offshore Mediterranean Conference • Ravenna, Italy • 21 March 2013

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Italy’s strategic role for the upstream DAY 3 in the Mediterranean Interview with Marco Brun, Country Chair Shell Italia and OMCNEWSAdriatic Countries2013 DAY 2 V IE W

OMCNEWS Development of mineral resources “can play a strategic role for Italy, but to 11th Offshore Mediterranean Conference • Ravenna, Italy • 22 March 2013 gather the benefits hoped for, in terms of growth, investments, employment INTER and simplification, it is necessary to intervene in a timely way with concrete, coherent and binding rules, turning back the trend of shrinking investments in DAY 3 OMCNEWSthis sector, which2013 suffers from a complex regulatory picture and extremely slow authorization processes”. This is the message that Marco Brun, country chair Shell Italy, is sending out on the occasion of the Offshore Mediterranean Conference 2013 through this 360° interview ranging from the situation of the upstream industry in the world, to the new technologies being developed, to the high quality case studies being conducted. Again this year, Brun is a member of the Steering Committee of OMC2013, which he considers “the most important event in the Mediterranean region dedicated to the oil & gas business”. Marco Brun, country chair Shell E&P OMCNEWS 2013 DAY 1 In the last quarter of 2012, Royal Dutch Shell’s is necessary to intervene in a timely way with concrete, hydrocarbon production increased 3% to 3.41 million coherent and binding rules, turning back the trend of barrels of oil equivalent. What is the main cause of the shrinking investments in this sector, which suffers from a increase? What do you see happening in the future? complex regulatory picture and extremely slow authorization The increase in production compared to the fourth quarter processes.DAY 2 The latest Economic Development Ministry OMCNEWS 2013 of 2011 is linked to the contribution of integrated gas, which data show that, by activating potential indigenous oil reflects the acceleration of the Pearl GTL project in Qatar and gas resources, it would be possible to cover 20% of and the increase in LNG volumes sold, especially thanks to domestic consumption, from the current 10%. Shell, which the Pluto project in Australia. In the fourth quarter of 2012, today is the biggest foreign investor in the oil & gas sector in fact, the production of natural gas increased 7% and oil in the country, can offer an important contribution in terms OMCNEWS 2013 production remained in line with that of the fourth quarter of investments,DAY 3 of increased production, of sustainability of 2011. This important result was possible thanks to state- and of giving a boost to the economic system. of-the-art technological skills and the strategy of integration Looking then at the wider international panorama, Shell’s at global level. strategy is, as we said, integrated at global level. In this Looking at the future, long-term growth prospects of context, we know that demographic growth and economic global energy demand remain unchanged, with a demand development in emerging countries will entail a global for clean energy resources that are accessible from an energy need which may triple by 2050; hydrocarbon economic point of view: this is an extraordinary challenge exploration and production will continue to play a central for our sector, and a great opportunity for Shell. That is role in satisfying that: the future energy mix will certainly why the Group is continuing to focus on development of its be more diversified, but renewable resources like wind and innovative projects and the search for new options, such as solar power will manage to cover only 30% of estimated the recent acquisition of Repsol’s LNG operations, which global demand. add a new dynamic to Shell’s portfolio for the western Technology and innovation therefore remain fundamental Atlantic and the eastern Pacific thanks to the liquefaction tools for us to respond to the growing demand for energy, capacity in Trinidad and Tobago and the Peru LNG quota. by optimizing the efficiency and sustainability of business With its long-term investment strategies for upstream processes, along with the capacity of involving and working activities, the Group is setting a goal to reach an average with diverse interlocutors on the international, national, and oil and gas production in the two-year period of 2017/2018 local levels. of 4mn boe/d. That is why the Group will continue to develop its oil & gas business tenaciously, with a global portfolio which in What are Shell’s anti-crisis strategies for the upstream 2012 already saw gas production increasing more than in Europe? And in the Mediterranean? oil. In fact, natural gas represents an excellent opportunity The Mediterranean and especially Italy enjoy a favorable to produce energy in a sustainable way: it is abundantly position compared the most of the other EU countries, available on the planet, it is affordable and is the cleanest thanks to the precious opportunity to be able to increase of hydrocarbons. For some time, Shell has invested in indigenous hydrocarbon production significantly, reducing natural gas, developing highly innovative projects, including dependence on imports and cutting energy costs, at the Prelude in Australia, the biggest offshore floating facility in same time stimulating skills, know-how and employment. the world for the conversion of natural gas into Lng, and the The development of this potential can play a strategic role great industrial complex of Pearl Gtl in Qatar, where natural for Italy, but to gather the benefits hoped for, in terms of gas is converted into clean fuels and lubricants. growth, investments, employment and simplification, it Natural gas is at the center of the current energy debate. 4 DAY 1 DAY 2 OMCNEWS OMCNEWS 11th Offshore Mediterranean Conference • Ravenna, Italy • 20 March 2013 11th Offshore Mediterranean Conference • Ravenna, Italy • 21 March 2013

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The recent shale gas revolution in the United States, The Offshore Mediterranean Conference has reached for example, is posing various questions: from the self- its 11th edition. What is your wish for the event’s sufficiency in energy of the United States and the cutting future? of natural gas costs internationally, to the consequent OMC today, twenty years after its first edition, representsDAY 2 OMCNEWS 2013 increase in coal exports from the United States to Europe the most important event in the Mediterranean region despite of a cleaner resource like gas. These are certainly dedicated to the oil & gas business and it has reached challenges which Europe must face in a prudent way to excellent results in terms of number of exhibitors, visitors catch the opportunities that the energy sector may offer. and quality of its conferences. During its 20 years of activity, OMC has followed closely Are you really interested in acquiring a stake in Rovuma and sustained the evolution of the oil & gas sector, with OMCNEWS 2013 in Mozambique from Eni, as the Global Insight agency special reference to Italy, offering to professionals DAYin the 3 has reported, after the delusion of the Cove Energy field an extraordinary platform for discussing the challenges takeover bid? of research and development, technological advances and We do not comment on rumors about our portfolio operations. future energy challenges. My wish is that the event become The Cove Energy affair is in the past, and since then various ever more a point of reference for the sector, putting Italy other options have opened up on the global level. at the center of the debate on the future of the upstream in the Mediterranean, an area of great potential development At what point is the agreement with Ukraine for shale characterized by significant growth possibilities. gas extraction? There is talk of a $10 billion investment. If it works out, would the agreement with Ukraine entail What new things will Shell present during these three production of unconventional oil as well? days of meetings? Activities related to extraction of shale gas are long-term Shell is offering its contribution in two workshops, the first projects that require huge investments. The exploration in the session “Social responsibility in frontier and mature phase may last several years and the production period areas” (Friday, March 22, from 9 to 14 - room A), a subject could extend into decades. In Ukraine, Shell is committed that is assuming increasing importance also in the oil & gas to a project that in its initial phase entails the acquisition of sector. Margriet Kruijper, SP/SD Shell Regional Manager 2D and 3D geophysical data, and fifteen exploration wells Europe, will illustrate the Dutch case history of natural gas in the Yuzivska area. production in the protected area of Waddenzee. The potential must be confirmed through dedicated The second contribution will be that of Maurizio Giorgioni exploration and evaluation programs, so it is premature to of Shell Italia E&P during the technical session called make any sort of prediction about the type of hydrocarbons “Advanced Methodologies For Complex Reservoir” present, production volumes, and timing. (Thursday March 21 from 16.25 to 18.05 - room C). Moreover, Franca Mazzatorta, Regulatory Affairs Manager At the beginning of the year, an incident in Alaska of Shell Italia E&P and Sylvain Nothhelder, Tempa Rossa during transport of the Shell Kulluk platform after the project director of Total E&P Italia, will preside at the drilling season end raised great concern. Even though it technical session called “Protecting the environment and was all resolved without environmental complications, the community”, opening the debate on the sustainability of now there are many who ask if the techniques for business strategies on the social and environmental level production in the Arctic are really adequate. You were in the oil & gas sector. the first to start drilling in those icy waters, investing about $4.5 billion. In what way will you continue to face Do you have any special events planned for your this challenge? When will there be the first economic stand? returns? This year, our stand will host one of the 13 Italian teams who Alaska has important energy resources and to guarantee will take part to the new edition of the Shell Eco-marathon, access to these resources specific skills, technology, the most important sustainable mobility competition which application of the highest safety standards and a profound each year involves over 3000 students and 200 teams knowledge of social and environmental sensibilities are coming from 20 countries. The Unibas Racing Team, coming necessary. from the University of Basilicata, will present as a preview Shell’s exploration program in the Arctic region is part of right here at the OMC its own prototype called “Potentia”. a long-term project, to be developed safely in a gradual Moreover, we have as an exceptional guest a Ferrari 150° and balanced way. After the positive conclusion of the 2012 Italia, thanks to the prestigious technical partnership linking drilling season with two wells in the Baeufort and Chukchi Shell and Ferrari for more than a half a century. seas, the year 2013 will be dedicated to the maintenance In the context of the event’s collateral activities, Shell Italia and technological updating of the drilling platforms and E&P is sponsoring the gala concert of the Orchestra della equipment in view of a new exploration season. Magna Grecia on the evening of Thursday March 21 at the The Arctic region represents an area of high potential and Basilica of Sant’Apollinare in Classe. This event reflects Shell remains committed to build an exploration program the wider strategy of support to young talents which has that takes into account the sensibilities and needs of local entailed Shell’s support of the Orchestra della Magna stakeholders and satisfies the highest safety standards. Grecia since the beginning of its ten-year path towards Every other comment on details of the work plan is achieving the status of a national orchestra. premature. Azzurra Pacces 5 DAY 1 DAY 2 OMCNEWS OMCNEWS 11th Offshore Mediterranean Conference • Ravenna, Italy • 20 March 2013 11th Offshore Mediterranean Conference • Ravenna, Italy • 21 March 2013

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The Eastern Mediterranean, DAY 3 engine of Europe’s upstream industry OMCNEWS 2013 A talk with Thomas Lockhart, chairman DAY 2 OMCNEWS V IE W of the Program Committee OMC2013 11th Offshore Mediterranean Conference • Ravenna, Italy • 22 March 2013 The big news is that the Eastern Mediterranean has emerged as a INTER future regional hub of the upstream industry, opening opportunities for technological innovation and freeing hydrocarbon reserves to meet DAY 3 OMCNEWS 2013 the region’s need for supplies and economic progress. This is truly a great development for the Old Continent’s sluggish economy. The man giving us this insight is Thomas Lockhart, twice chairman of the Program Committee of the Offshore Mediterranean Conference, who has long been a part of Eni’s E&P division. In this interview, Lockhart offers a guide to the 26 rich technical sessions which animate OMC2013. Thomas Lockhart, program committee chairman

DAY 1 OMCNEWS 2013 Let’s begin with exploration. of hydrocarbons from fields with low Field activities are already underway This is the driving force behind permeability, both shale oil and shale in Poland and in North Africa, and the upstream industry and all its gas, is a recent development that the industry’s attention is now turning satellite businesses. What will has upset forecasts of the earth’s to Ukraine. A group of reports at be the highlights of this edition remaining hydrocarbon resources, OMC2013, mostly by experts from OMCNEWS 2013 of the Offshore Mediterranean and has already revolutionizedDAY 2 the North America, will focus on the most Conference? situation in the United States. The US recent technological developments, At OMC 2013, there will be a total of has gone from being a country with a generally with reference to concrete four technical sessions dedicated to big shortfall in production compared cases of optimizing well productivity various aspects of oil exploration, from to demand, to one that is now enjoying and reduction of the environmental OMCNEWS 2013 geology to seismic interpretation. This the prospect of a futureDAY as 3 exporter impact associated with development is a record number for the Conference. of both gas and oil. The fallout from of this resource. Without a doubt, interest in the theme this development on the natural gas of exploration has been boosted by market is felt even now in various Ample space for technology too the recent impressive discoveries in regions of the world; there are those in OMC2013. What are the new the Eastern Mediterranean offshore who foresee similar consequences in frontiers? (Levantine Basin). the oil market as well in a surprisingly While the oil industry suffers from a near future. The possibility of getting “low technology” reputation in the When will these discussions get value out of these resources formerly public’s imagination, it is in reality an underway? considered “sterile” has come industry with a very high technological From day one: today there is a session about thanks to the development intensity. It is enough to consider the dedicated to “Exploration prospects and systematic application of new shale oil and gas revolution, or the in the Mediterranean Basin”. What techniques of hydraulic fracturing and industry’s capacity today to operate in should be noted especially, for their the drilling of horizontal wells. up to 3,000 meters water depth. Two current interest, are two papers sessions to be held tomorrow and the dealing with the geological aspects But in Europe there are multiple day after are called “Technologies of this new exploratory play, quite obstacles hindering exploitation for the future”, and they take to heart probably a strong attraction for the of these resources, legislative especially the theme of technology, industry for many years to come. Two and bureaucratic… How can these offering insight into the near future. other papers in the same session prejudices be overcome? They will discuss applications of deal with the potential of Algeria’s For the past couple of years, the nanotechnologies in drilling and offshore, an area that may soon be whole world has been wondering if of AUVs (autonomous underwater opened to oil & gas exploration. But and when these same resources, vehicles), which may soon enter the list of appointments is quite long, which are found in Europe, North operation as robots, surveying the and they are all interesting. Africa, Russia, China, and in many marine environment and monitoring There are also some lengthy other regions, can be put into the state of equipment on the floor of technical sessions dedicated to production. For Europe, especially, the sea. non-conventional hydrocarbons. these resources offer the possibility to A. P. Why is that? reacquire a margin of self-sufficiency,

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The strength of Ravenna’s economy Mayor Fabrizio Matteucci’s welcome Ravenna businesses linked to the The Offshore Mediterranean hydrocarbon industry have grown Conference occupies a OMCNEWS 2013 thanks to the operations Eni began noteworthy position amongst DAY 2 in the 1950s in the Adriatic Sea. our city’s important events. Since then, Ravenna companies Every two years, for three days, have developed a presence in Ravenna becomes the capital international markets, and they of the oil industry, the heart of a have specialized in construction distinguished debate on one of of rigs, oil and gas pipelines, in the few economic sectors which, DAY 3 OMCNEWS 2013 services for extracting plants, and despite the crisis, continues to in construction of support vessels. attract investments. The great strength of this sector Gianfranco Bessi, This year’s numbers (over 500 Fabrizio Matteucci, of Ravenna’s economy lies in its Chairman Ravenna companies from 24 countries, Mayor of Ravenna international dimension, which has Chamber of Commerce 26 technical sessions) confirm served as a constant buffer against the crisis. In the hydrocarbon the significant increase in interest for this event. extraction sector, the flow of investments has been constant, and Aside from the certainly positive effects for related local this has contained the internal effects of the economic downturn. businesses, which are able to make solid contacts in the Ravenna’s offshore businesses operate in many foreign sector thanks to the presence of delegations from abroad, countries: North Africa (Algeria, Tunisia, Libya, Egypt), the the Omc is an all-round opportunity. Eastern Mediterranean (Turkey, Greece), West Africa (Congo, For three days, in fact, our city recovers its ancient Angola, Nigeria). There are activities in Latin America (Brazil vocation as a bridge between East and West. Within the and Mexico) and naturally in Kazakhstan, where Eni plays an Pala de Andrè complex, diverse cultures and productive important role. forces will face questions of vital importance not only for Twenty years ago, in its dialogue with Eni and local institutions our economy but also for the quality of our life, like that of about the idea of creating the Offshore Mediterranean finding energy resources. Exhibition, the Chamber of Commerce set as its first goal the I would like to focus on this year’s theme: “Charting a internationalization of the system of production. Today, with the course in a changing sea”. This is a genuine declaration of 11th edition, we can say that that in large part that goal has been intent, alluding among other things to the commitments of reached. It is no accident that again this year, Omc will be attended companies working in the field of hydrocarbon extraction to by a greater number of exhibitors than ever before, and that the search for technologies with lower impact and to contribute foreign delegations and authorities attending the inauguration concretely to development of the territories. are of the first order. Omc produces a double benefit: it brings the I find “the tone” of this reflection particularly interesting for name of Ravenna and its eight Unesco-registered monuments the territory of Ravenna. to the attention of the world, and it generates added value for Ravenna is a mixture of the modern and the ancient. hotels, bars and restaurants, craftsmen and merchants. It boasts a wealth of art inherited from its grand history, as Clearly we have not yet achieved the ultimate. Today our firms well as exceptional natural beauty. Our deep link with the move around on the lookout for new markets throughout the water is brought out well by the role we give to the port world (I am thinking about Mozambique, for instance), but as the driving force of our economy and by our constant it is clear that we must also look at the domestic market. Last commitment to making it more competitive. October, the Monti government elaborated Italy’s national energy We want to be dynamic stewards of this precious strategy (Sen). patrimony, seizing all the opportunities that can come from The fall of that government has interrupted the legislative course its enhancement. of the bill including that strategy, which I hope is taken up by At the same time, we do not want to close a door on the new government, because the multiplier effects in terms of any type of development, so long as it is of high quality, industry, employment, fiscal yield and energy savings deriving compatible with the environment and does not damage from a re-launching of oil and gas extraction in Italy would be this great asset of which we are proud. highly significant. Italy is one of the countries most dependent Despite the fact that the ferocious crisis makes on foreign nations to cover its own energy demand, with a gap forecasts particularly difficult, we too are committed to of 30% compared to the EU average: 83% against 53%. Oil and charting a course in a sea that is changing: we are natural gas are not lacking in Italy, but in fact we prefer to import presenting Ravenna as European Capital of Culture for them. Excluding the two big North Sea producers (Norway and 2019. Great Britain), Italy has Europe’s biggest oil reserves and is Ravenna capital of culture and Ravenna capital of energy fourth for natural gas. I therefore believe that there should be - the one does not exclude the other, and in fact they join a vigorous resumption of the project of hydrocarbon extraction together in a single project whose horizon is the social and in Italy, even if polemics and obstructionism can be expected. economic growth of our community. A civil country must know how to face that. Closing, I would I greet all the foreign delegations who will be in our city for like to note that on the occasion of the Omc, the Chamber of this important appointment, and I thank them for having Commerce and Roca are organizing the Italo-Norwegian Forum discovered Ravenna as a strategic place where they may as a way to discuss energy, environmental, and economic face questions that are fundamental for the destiny of the themes in general. world. 9 DAY 1 DAY 2 OMCNEWS OMCNEWS 11th Offshore Mediterranean Conference • Ravenna, Italy • 20 March 2013 11th Offshore Mediterranean Conference • Ravenna, Italy • 21 March 2013

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DAY 3 A drilling automation technology DAY 2 OMCNEWS 2013 roadmap OMCNEWS Relationships among 11th Offshore Mediterranean Conference • Ravenna, Italy • 22 March 2013 rigsite manpower,

Eff i c ien cy automated rig equipment, and remote connectivity OMCNEWS 2013 DAY 3 Despite renewed interest and recent advancements, there remains a real need for technology roadmaps to help guide, focus, and even unify the industry’s efforts in all aspects of drilling automation Nome to improve rig safety and performance efficiency. Such roadmaps could identify OMCNEWS 2013 current states of relevant technologies, equipment, and remoteDAY connectivity1 makes all decisions on opposite ends of generate long-range views of where are the three automation components a “level-of-automation” scale. Scenarios they could or should be in the future, that are often discussed independently, for each of the six segments in the drilling and suggest viable paths between the but seldom as an integrated set. While domain are presented to highlight major two states for each technology. The each has its own set of benefits, costs, shifts in technology, requirements primary purpose of this paper is to create issues, and risks, an important premise for new technologies, and decision- OMCNEWS 2013 a series of drilling automation roadmap of this paper is that balanceDAY 2 amongst making directives to serve specific frameworks using a newly develop the three is central to drilling automation needs. Segment-specific roadmaps ternary chart technique that graphically success. Previously, automation in are illustrated using the ternary chart depicts relationships among the three general has commonly been described technique. fundamental automation components. as a binary relationship involving Mario Zamora, OMCNEWS 2013 Rigsite manpower, automated rig computers and humansDAY where 3 each Tom Geehan, MI Swaco

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Levantine basin, a tech dive in the deep sea DAY 3 The results of the acquisition of large and high quality seismic data

DAY 2 OMCNEWSRecent exploration 2013 activity and successful • Both geological and geophysical information suggest discoveries in the Levantine Basin have that the eastern Mediterranean represent the marginal

OMCNEWS E & P encouraged the acquisition of a large set of extension of the African continental crust. 11th Offshore Mediterranean Conference • Ravenna, Italy • 22 March 2013 modern high quality seismic data. • The Levantine basin can be subdivided in a Southern Integration of this large data set and elaborations Levantine Sub-basin and a Northern Levantine Sub- of gravity and magnetic anomaly data, allows basin separated by a NE-SW structural element a robust definition of the tectono-stratigraphic (Levantine Sub Basins Border, LSBB) which can be the DAY 3 OMCNEWSevolution and 2013 the deep structural architecture of limit between a thinned continental crust to the south and the Levantine margin. a transitional crust to the north. The Eastern Mediterranean geological evolution began with • The onset of the Late Mesozoic/Early Cenozoic the northern Gondwana fragmentation, resulting from the late deformation with the origin of the Cyrpus Arc reactivated Paleozoic to early Mesozoic tethyan rift. the Levantine Sub Basins Border as a peripheral bulge of Subsequently, the tethyan passive margin structures were the Cyprus foredeep. interested by the Cenozoic closure of the Tethys Ocean. The • The gravity and magnetic trends of the Southern sub- generation of the South verging Cyprus arc has triggered basin show that most of the horsts and grabens are OMCNEWS 2013 the development of a large foredeep-foreland system in parallelDAY 1 to the Eratosthenes block. These features and correspondence of the northern Levantine basin, while the trends are similar to those detected onshore in Egypt and southern part of the basin remained relatively undeformed. in the Levant area, implying a similar geological evolution The fragmentation of the African Plate, together with the of the structures from inland to the offshore area. subsequent closure of the Tethys ocean and the plate • The analyzed seismic sections and the literature boundary deformation along the Dead Sea Fault Zone, were published data suggest a sediment provenance from OMCNEWS 2013 a key event for the filling of the southern part of the basin. sourcesDAY 2 located to the East, in the Arabic plate, for the Additional sedimentary input was coming from the East Levant sedimentary infill of the Levantine basin. In particular, the Margin and from the North East side of the Cyprus collision siliciclastic Rutbah High, to the South, and the carbonate zone. The record of these tectonic events is highlighted by the Aleppo Plateau, to the North, are the two most logical huge structural elevation of sources for the sedimentary input feeding the basin OMCNEWS 2013 Mt. Lebanon and Trodos Mountains, both facing the deep duringDAY 3 the Cenozoic time. water setting of the East Mediterranean Sea. • From a petroleum system viewpoint, the main potential The combination of these sedimentary inputs was capable to siliciclastic reservoirs are represented by the channel- fill the thick Cyprus arc foredeep basin. This study attempts lobe systems deposited within the Lower Oligocene, the to reconstruct a coherent kinematic evolution of the Levant Lower Miocene and, probably, in the Upper Miocene basin area, the crustal scale structural architecture and the successions. sedimentary input, origin and distribution, in order to decrease • Considering the Tertiary carbonate intervals, possible the hydrocarbon exploratory risk of the area. The integrated reservoir facies seems to be expected within the Eocene- analysis of seismic and potential field data, constrained by the Oligocene and Miocene units. regional geological framework of the eastern Mediterranean sea has demonstrate to be an effective way to understand the A. Cappelletti, C. Barbieri, P.G. Biffi, M. Gilardi, A. Frixa, Levantine basin structural evolution, the main key points are: F. Melchiori, G. Pompadoro, G. Rea, F. Righetti, D. Sartorio, Eni E&P.

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Giant gas discovery DAY 3 offshore Cyprus and Lebanon OMCNEWS 2013 Aspects of the depositional DAY 2 history of the Levantine basin OMCNEWS E & P 11th Offshore Mediterranean Conference • Ravenna, Italy • 22 March 2013 The giant gas discoveries of Tamar, Leviathan and most recently Aphrodite, found within the Oligo- Miocene strata of the Levant Basin, have proven OMCNEWS 2013 the significant hydrocarbon potential of the EasternDAY 3 Mediterranean. Nevertheless, the region can still be considered underexplored and it is likely that deeper plays will be tested in the very near future. The geological development of the Levant Basin is complex, and the nature and origin of the basin fill are currently poorly understood. The well data for the Levant Basin is sparse and the Lebanese offshore area remains undrilled. However, valuable information can be obtained from the seismic data OMCNEWS 2013 acquired across the basin. A dense 2D grid and multiple DAY 1 overlapping new 3D surveys, which provide a regionally consistent 3D seismic coverage, have been acquired. This data provides clearer imaging of the present structural pattern, within the regional context, and allows investigation of the depositional history of the northern Levant Basin. DAY 2 OMCNEWS 2013 Several key horizons have been interpreted; providing a stratigraphic framework ranging from Upper Jurassic to present. Several canyons and conduits leading into the northern Levant Basin have been identified on the seismic data and amplitude extraction surfaces over specific OMCNEWS 2013 Miocene intervals illustrate the distributary pattern of these DAY 3 sediment conduits. These conduits include channelized systems that may have delivered clastic material; from the east and northeast, probably coming off the Levant Margin, and from the south probably from the Nile Delta. The development of these channels coincides with a change in the depositional geometry of the basin that may be attributed to the onset of the final uplift of the Palmyrides.

J. Fürstenau, Petroleum Geo-Services, N. Hawie, Université Pierre et Marie Curie-CNRS and IFP Energies nouvelles, Jorn Furstenau, J. Comstock, C.J. Lowrey, Petroleum Geo-Service Petroleum Geo-Services.

Today’s event Technical Session, Exploration Prospects in the Mediterranean Basin Room B - 14.30 - 16.30 Chairmen: Boubekeur Malek, Sonatrach - Mostafa El Bahr, EGAS

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Italian offshore, minimizing non productive time DAY 3 Modelling tool specifically developed for wellbore strengthening treatments

The increase in complexity and costs associated with set to isolate the shallower high pressure region followed DAY 2 OMCNEWS 2013 drilling “difficult” wells, such as those in depleted or by an expandable liner to isolate the over pressured shales weak zones, has strengthened the industry interest laying above the depleted reservoir level. The challenge was OMCNEWS towards technologies that are capable of minimizing the review of the original well design to take advantage of

11th Offshore Mediterranean Conference • Ravenna, Italy • 22 March 2013 D ri ll ing Non Productive Time (NPT). The typical problem the combined application of continuous mud circulation and associated with drilling these types of intervals is wellbore strengthening to improve the operational efficiency. lost circulation, which is perhaps the most costly An alternative design was proposed that required only OMCNEWS 2013 mud-related drilling problem. The Luna-41 well is a one fluid system and a single casing string, thus savingDAY an 3 sidetrack drilled to increase the recovery of gas still expandable liner. The field application was a success. The available in some reservoir levels of the Hera Lacinia field, depleted zone was drilled without incurring lost circulation. offshore Crotone, in Southern Italy. The well intersects a critical This paper describes the well design review for Luna-41 and interval comprising high pressurized formations overlaying a the fluid engineering process based on the modelling tool lower pressure depleted zone. The initial plan for the well was specifically developed for wellbore strengthening treatments. to divide this interval into two separate hole sections using G. De Grandis, A. Maliardi, A. Ligrone Eni e&p; F. Arpini, Ava two different mud systems. A casing string would have been

OMCNEWS 2013 DAY 1 Angola, Eni hits oil Eni has made the ninth oil discovery in Block 15/06, in deep water offshore Angola, increasing the resource base of the West Hub project. The discovery was made through the Vandumbu 1 well, located approximately 150 kilometers from the coast. The well was drilled at a water depth of 976 meters and reached a total depth of 4,107 meters. Additional drilling has been carried out from the Vandumbu 1 well in different direction (side track), Vandumbu 1 ST, DAY 2 OMCNEWS 2013 that reached a depth of 3,480 meters, finding a net oil (34° API) pay of 114 meters, contained in Lower Miocene high quality sand. As suggested by data acquired, Eni estimates that Vandumbu 1 ST has a production capacity in excess of 5,000 barrel of oil per day . Eni is operator of Block 15/06 with 35%. The other partners of the joint venture are SSI Fifteen Limited (25%), Sonangol (15%), Total (15%), Falcon Oil Holding Angola SA (5%) and Statoil Angola Block 15/06 (5%). This discovery confirms Angola as one of the core countries in Eni’s organic growth strategy. Eni has been OMCNEWS 2013 present in the country since 1980 with a net production of 102,000DAY barrels3 per day in 2011.

VAL D’AGRI, HIGH PERFORMANCE DRILLING FLUID Many wells have been drilled through the “Irpine” unit formations in the Val D’Agri field development since the start of the project. The Irpine unit contains overpressured shales and reactive claystones. In the early years, simple non-inhibitive lignosulfonate fluids were used leading to large washouts. Later, potassium-based fluids, including potassium chloride and potassium carbonate-based systems, were used. None of these fluids provided adequate borehole stability, despite applying high mud weights. Despite many attempts to improve the performance of these systems, hole problems persisted. Formation stability issues while drilling the 12 1/4” hole for 9 5/8” casing on the Monte Enoc 10 Or B well prompted to search again for an alternative fluid system. This led to the development and deployment of a chloride- and potassium-free, high-performance water-based mud (HPWBM). This was the first time a potassium-free fluid was used in this field. The HPWBM delivered better improved hole stability and increased rates of penetration, as well as reduced dilution rates. The section well was completed within budget with the 9 5/8” casing placed as programmed without any issues. A. Maliardi, A. Guarneri and B. Ravagli, Eni spa; M. Sergiacomo, E. Van Beest and D. Vitale, Halliburton

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Challenges of offshore oil DAY 3 and gas production

During the past several years, operational costs for oil and DAY 2 OMCNEWSgas production 2013 fields have more than doubled, and field life requirements have been extended by as much as 500 OMCNEWS percent. Due to the soaring costs for development and the 11th Offshore Mediterranean Conference • Ravenna, Italy • 22 March 2013 increased demand, oil and gas production assets must achieve very high throughput rates while improving energy BY COM PANIES BY efficiency, safety, and reducing emissions levels. During OMCNEWSwhich, oil and 2013 gas production fields are faced with greater These changes mean that more sophisticated control strategies are DAY 3 flow assurance challenges. needed at the sea floor. Within this background, Offshore production is growing in volume Another change is that subsea tiebacks - basically, multiphase and complexity. pipelines on the sea bed - are now frequently being used to Deepwater and ultra-deepwater oil and gas production began in extend the life of existing production platforms. Rather than place the early 1990s and increased rapidly, reaching in 2012 more than a new platform over a new asset area, a subsea tieback is used 7.2 million barrels of oil equivalent per day (BOED). The increase to connect the new field to an existing but underutilized production has placed significant demands on offshore platforms’ and vessels’ platform. These solutions require extending control networks for automation systems, affecting how these systems are used to several hundred miles and controlling complex multiphase pumping OMCNEWS 2013 improve and increase deepwater production and how interface with systems.DAY 1 one another. Reducing cost and risk is, of course, always a factor. Automation A deepwater production platform generally operates several systems and their interfaces are almost always on the critical path different automation systems: to first oil, so reducing risk through standardization and advanced Topside distributed control system (DCS), which manages the programming techniques like object oriented programming is key. separation and stabilization of production fluids. In addition,DAY 2 since the MCS and the DCS are generally supplied by OMCNEWS 2013 Master (or marine) control system (MCS), operating the subsea different vendors, minimizing finger-pointing is important. wellhead, manifolds, chemical injectors, and other underwater Finally, using multiple vendors and vendor independence requires a equipment. viable open-source support organization for wide-ranging adoption Hull systems, a collection of control functions. and long-term viability. The days of proprietary industrial networking Hotel systems, managing everything associated with supporting protocols are largely behind us. Industrial users, like IT and even OMCNEWS 2013 the crew. consumerDAY 3 users, want protocols that have wide support among Focusing on the ways the interface between the MCS and DCS is industrial suppliers and an extensive range of off-the-shelf products evolving can illustrate what is changing offshore automation systems available. and how deepwater crews can overcome potential challenges. Invensys proactively drives solutions value and sustainability by Safety concerns are continuing to grow in importance. This is continuously improving technologies for oil and gas operations driving the need for increased safety-rated interlocks and additional with Real-Time Operations Management. Real-Time Operations monitoring of subsea wellheads, manifolds, and other equipment. Management is designed distinctively to complement the rapidly But as technology and exploration methods have advanced, other evolving oil and gas industry by managing throughput, energy, and issues have also evolved. For example, larger and more complex yield in real time. Users can easily measure and be more proactive fields require far more measurements, controllers, and actuators about business intelligence, transition control, and optimize on the sea floor. Also, because subsea processing technology competing objectives in real time - all key requirements to keep and economics are improving, it is often cost effective to handle pace with the speed and demand of today’s changing business unit operations, such as separation, water reinjection, and gas environment. reinjection, at the mud line, rather than transport production fluids By John M. Gilmore, Jr., Director of Upstream Oil & Gas Industry Solutions for topside for processing and then send them back down for reinjection. Invensys Operations Management

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AGENDA Economic Development Ministry DAY 2 OMCNEWS 2013 Wednesday 20 march 16:30 /18:00 - Workshop/tavola rotonda - Stand MiSE Safety in sub work - new rules “Industrial Diving. Prospects and problems in professional training for the labor market in Italy and in Europe” - Orlando Pandolfi (AISI) 17:30 /18:00 - Talk - Room “C” MiSE: Luca Forte “Storage Capacity Prospects in Italy” DAY 3 OMCNEWS 2013 (Alternate) Thursday 21 March 10:00 /11:00 - Meeting with Croatia - Stand MiSE Safety directive and dialogue on rules 11:00 /13:00 - Meeting - Stand Assomineraria Assomineraria, operators and ministry and region representatives for an update on current and future problems in authorization processes. 14:55 /15:20 - Talk - Room “B” MiSE: Luca Di Donatantonio, Antonino Caliri, Maria Giovanna Montalbano “Offshore Safety in the O&G Industry: a new regulatory framework” 16:00 /18:00 - Meeting - Distretto ENI Meeting with ENI on “Seismicity and Cavone” Friday 22 march 09:30 /11:00 - Stand MiSE OGS the elaboration of public seismic data 14:30 /17:00 - Distretto ENI ENI on “strata water, reinjection, etc.”

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Junin 5, Eni seeS de Hidrocarbonetos de Mocambique has been awarded by Burullus DAY 3 first oil (ENH, 10%), Kogas (10%) and Galp Gas Company a contract for the Energia (10%). The agreed price is development of the West Delta Deep Eni and PDVSA have seen equal to 4,210 million US dollars. Marine Phase IXa Project about 90 OMCNEWS 2013 first production at their Junin During the meeting, Eni and CNPC km off the Mediterranean CoastDAY of2 5 giant heavy oil field in the signed a Joint Study Agreement for Egypt. In Angola, Saipem has been OMCNEWS Orinoco Belt. The explorers cooperation for the development awarded an Epci contract for subsea aim to produce around 15,000 of the Rongchang shale gas block, facilities. The scope of work includes 11th Offshore Mediterranean Conference • Ravenna, Italy • 22 March 2013 barrels per day by year’s end which covers about 2,000 square engineering, procurement, fabrication

Latest in b rie f Latest at the block, which is situated kilometers in the Sichuan Basin. This and installation of production and around 550 kilometers south area, closely located to the main water injection pipelines and flowlines,DAY 3 OMCNEWS 2013 east of Caracas. The first well consumption markets in China, has rigid jumpers and other related subsea has been brought online nine already been de-risked by research structures. months ahead of development plans, activities and production tests carried according to the companies operating out in nearby blocks and has proven Eni with Petrovietna the 425-square kilometre field. Further to be the most promising in the for unconventional development aims to see output of country to date. The agreement will The president and Ceo of Vietnam 75,000 barrels a day by early 2015, allow for the study of the area which Oil and Gas Group (Petrovietnam), through the drilling of around 180 will be conducted simultaneously with the national oil company, Do Van wells. Junin 5 holds 35 billion barrels the negotiations for the signing of the OMCNEWS 2013 DAY 1 Hau, and Eni’s Ceo, Paolo Scaroni, of oil equivalent of certified oil in place. Production Sharing Agreement. At full development after phase two, signed an agreement in Hanoi for the block is forecasted to produce the joint assessment of the country’s 240,000 barrels a day by the end of unconventional hydrocarbon potential. 2018 with a 40-year field lifespan. The agreement follows the signing of a OMCNEWS 2013 PDVSA holds a 60% share in the DAY 2 memorandum of understanding bythe PetroJunin joint venture that operates two companies on Jan. 21 in Rome, the block, with Eni on 40%. which provides Petrovietnam with the opportunity to expand its international Mozambique, activities and the opportunity for Eni to consolidate its presence in Vietnam. OMCNEWS 2013 Eni and CNPC DAY 3 agreement Gas flow Eni CEO, Paolo Scaroni, and from Libya the CEO of Petrochina Company From Saturday, March 9, natural gas Limited, controlled by China National Scaroni signs agreement in Beijing from Libya began to flow to Italy again. Petroleum Corporation (CNPC), It had been interrupted on March 2 Zhou Jiping, signed an agreement after armed conflict had broken out in Beijing for Eni’s sale to CNPC of Saipem, new in the area of the Mellitah plant. The 28,57% of Eni East Africa’s shares, preliminary financial report of Snam owner of the 70% interest in Area 4, contracts for $1.1bn indicated a flow of 13.1mn m3 in the in Mozambique. With this operation, face of a demand of 15.7 on Saturday CNPC indirectly acquires a 20% stake Saipem has announced that it has and then on Sunday an apparent in Area 4, while Eni remains the owner signed new E&C offshore contracts return to normality, with a 12.7mn m3 of 50%. The remaining shares in the in North Africa and West Africa for supplied in the face of an identical Area are held by Empresa Nacional a total of $1.1bn. In Egypt, Saipem demand.

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TODAY’S AGENDA Wednesday 20th March 9.00 inauguration of the Exhibition 15.45 • Developing a Drilling Automation Technology Roadmap 9.30 Opening Ceremony Alternate • Northern Light Drilltower DAY 2 OMCNEWS10.45 Opening Plenary 2013 Session seismic Interpretation & Satellite Field “Charting a Course in a Changing Sea” (Room A) exploration (Room B) 13.00 Working Lunch, guests of PROGER 16.25 • Satellite Field Exploration in South East of Berkine 14.30 Technical Sessions Basin exploration Prospects in the 16.50 • The Hydrocarbon Potential of Hamra Quartzites Mediterranean Basin (Room B) Reservoir around Hassi Messaoud and Oued Mya Basin 14.30 • Deep Structure and Foredeep Evolution 17.15 • Uncertainty Analysis in Seismic Velocity DAY 3 OMCNEWS of the Levant 2013 Margin Estimation. A case history from West Africa 14.55 • Aspects of the Depositional History of the 17.40 • Event Automatic Picking & Tracking Seismic Levant Basin, Offshore Cyprus and Lebanon Horizon Using a Linear Prediction Technique 15.20 • Available Data and Petroleum Interest of the gas Valorisation (Room C) Algerian Offshore Basin 16.25 • Technology Innovation for Natural Gas Monetization 15.45 • How to Bust Exploration Activity of Frontier Area, 16.50 • Syncrude Production from Associated Gas: Algerian Mining Domain Streams Compatibility Assessment Flow Assurance (Room C) 17.15 • How Gas Quality Affects the Compressed Natural 14.30 • Optimization of Finger Type Slugcatcher Design Gas Delivery Chain Through Rigorous Transient Multiphase Flow Analysis 17.40 • Qualification of an Innovative Offshore LNG Tandem 14.55 • Flow Assurance Technology For Deep Water Gas Offloading Solution with Floating Cryogenic Hoses Production Systems in the Mediterranean Sea: Alternate • Storage Capacity Prospects in Italy Optimization of Gas Production Rates with Minimum drilling Optimisazion (Room D) Glycol Injection Rates to Avoid Hydrate Formation 16.25 • The Combined Application of Continuous Circulation 15.20 • Advanced Flow Assurance Diagnostics in Val d’Agri and Wellbore Strengthening Allowed to Save an 15.45 • Methodology for Characterising Slugs and Operational Expandable Liner: Successful Field Test Offshore Italy Mitigation Strategy Using Olga Slug Tracking 16.50 • Hybrid Bit Produces Breakthrough Performance Module - Egina Deepwater Project and Savings for Inland Application in Turkey drilling Technology Advances (Room D) 17.15 • The New Concept for Modeling Clays: Application for 14.30 • Meeting the Challenge of Coring within an Stabilizing Boreholes while Drilling Reactive Shale Unconsolidated and Unconventional Reservoir in Formations in Oil and Gas Wells the Adriatic Sea: a Successful Case History of 17.40 • Design Considerations for the Next-Generation Using a Small Borehole Stimulation Vessel in Europe 14.55 • Application of Chemical Tracers for Clean-up and 14.30 Assomineraria Workshop Production Inflow Monitoring with Onshore and “Oil & Gas in Italy: Reaching the Industrial Targets Offshore Wells - eni Experiences and Lessons Learned of the National Energy Strategy” (Room A) 15.20 • Advanced Drilling Time Analysis Through the 18.00 exhibition area closes Combination of Operations Reporting & Sensors Data 21.00 gala Dinner (upon invitation only), guests of ENI

Side Events

10.00 - 13.00 Sala Verde (1st floor Hall 6) Fridle company presentation

14.30 - 16.00 Sala Verde (1st floor Hall 6) Bourbon Offshore - DNT presentation

16.30 - 18.00 Sala Verde (1st floor Hall 6) G-Risk company presentation

OMCNEWS 2013 Edizione speciale della / Special edition of STAFFETTA QUOTIDIANA - 20 marzo 2013 Petrolio gas elettricità e altre fonti di energia - Oil gas and power in Italy Direttore responsabile / Editor in chief Editore / Editor Goffredo Galeazzi RIVISTA ITALIANA PETROLIO Srl Direttore emerito / Director emeritus Redazione e produzione / Editing & production Giorgio Carlevaro RIP Srl Direttore editoriale / Editorial director Roma - 00145 Giovanni G. Borromeo Largo Luigi Antonelli, 30 Pubblicità e marketing / Advertising & marketing e-mail: [email protected] Paolo Angelini www.staffettaonline.com Progetto grafico / Graphic layout Reg. Trib. Roma n. 4304 del 7/12/54 Studio Giano di Fabrizio Pensa - Roma 20 DAY 1 DAY 2 OMCNEWS OMCNEWS 11th Offshore Mediterranean Conference • Ravenna, Italy • 20 March 2013 11th Offshore Mediterranean Conference • Ravenna, Italy • 21 March 2013

A wave of optimism concerning Mediterranean dialogue At OMC2013’s opening ceremony, Eni Ceo Paolo Scaroni gave a 360° panorama of the upstream. Oil & Gas speakers at the conference number 120, and exhibition stands represent 566 companies from 30 countries.

“This is my first time here and I am really impressed”. This was the reaction Eni Ceo Paolo Scaroni conveyed to journalists on the sidelines of the inaugural event of the 2013 edition of the Omc in Ravenna. After the greetings DAY 3 of chairman Innocenzo Titone, of Ravenna mayor Fabrizio Matteucci and of Chamber of Commerce president Gianfranco Bessi, Scaroni offered a panoramic view of the hydrocarbon business today, drawing on the experience of his meetings with shareholders a few days ago in London on the occasion of the presentation of Eni’s current strategies. He focused on three subjects: the natural gas OMCNEWS market in the light of Eni’s discovery in Mozambique, the 11th Offshore Mediterranean Conference • Ravenna, Italy • 22 March 2013 situation in North Africa, and Iraq. Gas. For decades, Scaroni explained, the European The ribbon is cut by Ossama Kamal, Egypt’s oil minister, and Ravenna market was stable, “almost boring”: on the one hand, there mayor Fabrizio Matteucci, with Innocenzo Titone, OMC2013 chairman, were five or six producing countries, on the other, the Abdulkareem Luaibi, Iraq’s oil minister buyers, monopolists in their respective countries with take- or-pay contracts linked to fuel oil and diesel. “Now all this is ancient history” because of three factors: the shale gas Focus revolution in the United States, EU liberalization, with the Italian Upstream producing countries dealing directly with their markets, and Ministry of economic development the collapse of consumption in Europe. “Yesterday I was in annual report Page 4 the Usa – Scaroni said – and I spoke with the new Energy undersecretary Moniz and I had the impression that a flow Interviews of gas toward Europe will start. The volumes will not be Brunori (Rina Group) colossal but there will be a flow of Lng exports and the Usa, Expanding in spite of the crisis Page 11 Bräuer (OMV) I think, will open up to the idea of exports”. DAY 1 OMCNEWS 2013 As for European consumption, Scaroni noted that in 2008 The best technique for increasing reserve Page 15 it amounted to 630 billion cubic meters, while in 2012 that Continues to page 18 u

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Italy main interlocutor DAY 3 for offshore safety Necessary to fully exploit the country’s potential OMCNEWS 2013 DAY 3 The current National and In- production and of gas storage activities. OMCNEWS E & P ternational context is full of Pursuing this mission, the Directorate, 11th Offshore Mediterranean Conference • Ravenna, Italy • 22 March 2013 difficulties and uncertainties. starting from 2008 - when it was The financial crisis affected all instituted, achieved impressive results: western economies and our in particular, in 2012, it was registered for Country has been strongly im- the third consecutive year an increase pacted. At the same time, the of hydrocarbons production (+2% impressive development of several are- with respect to 2011), also thanks to as in the world is impacting on the envi- specific technical/normative actions. At ronment and on all raw material prices, a national level, in 2012 the Directorate Franco Terlizzese, including energy sources. gave support for defining the National general director ministry of economic development Moreover, since Italy is currently strongly Energetic Strategy, which foresees dependent on fossil fuels import, it is the re-establishment by 2020 of ‘90s Many actions have been undertaken, clear that it is necessary to fully exploit hydrocarbon production level. but the Directorate will do much more in OMCNEWS 2013 the Country potential in terms of gas Finally, at DAYan 1 international level, the the near future in order to achieve the and oil reserves, also considering the Directorate firstly committed itself ambitious objectives stated within the occupational and economical benefits in order to create technical groups/ Energy Strategy, promoting, through deriving from the development of roundtables finalized at the optimum normative and administrative tools, the energetic activities. exploitation of mining/energetic sustainable - from and environmental Within this context, the Directorate has resources DAYin 2 coordination with and safety point of view - domestic OMCNEWS 2013 a main role for the management - fully neighboring Countries (ex. Malta and hydrocarbon production. respecting the environment and applying Croatia) and at the same time became the most advanced safety measures - of the main Italian interlocutor of the Franco Terlizzese, mining and energetic resources in Italy, European Commission for the definition General Director for Mineral and Energy in particular of hydrocarbon exploration/ of the Offshore Safety Directive. Resources Ministry of Economic Development OMCNEWS 2013 DAY 3

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DAY 3 Ministry of economic development annual report In Italy 115 exploration and 200 production concessions are in place OMCNEWS 2013 DAY 3 In Italy activities, both technical and legislative: accident probability, mitigating the At a national level, in 2012, the 1. within the framework agreement consequences and contemporarily OMCNEWS DIRECTORATE-GENERAL between Italy and Croatia, aimed at increasing the protection of marine 11th Offshore Mediterranean Conference • Ravenna, Italy • 22 March 2013 FOR MINERAL AND ENERGY guaranteeing the optimum exploitation environment. During 3 different UE a li n E & P RESOURCES carried out many of “Annamaria” gas field, the Compe- Presidency (Poland, Denmark and I t activities, in particular: tent Authorities of Italy (the Directora- Cyprus), the Council through its 1. active support for the issuance te) and Croatia (Directorate for Mining) Working Party on Energy (EWP) of the document that sets out the worked together for the re-definition analyzed the Regulation Proposal principles of the National Energy of the Technical Agreement signed in and presented several amendments. Strategy (SEN in Italian language), 2009 in order to adjust the agreement The Directorate, in 2012 followed presented on 16 October 2012 by the itself to the recent re-determination of the normative evolution through the Minister of Economic Development and the two Countries production shares participation of some of its members submitted for public consultation. The 2. the feasibility of the Italy-Malta joint to the EWP. main tasks faced by the Directorate for exploration in Southern Ionian Sea the development of the SEN document and in the Sicily Channel was started- Hydrocarbons and geo-resources OMCNEWS 2013 are the following: up. AfterDAY preliminary 1 meetings carried Exploration and Production a. sustainable development of the out in 2012, the Italian party will As of 31 December 2012, in Italy, 115 national production of hydrocarbons present a technical proposal for the exploration concessions (94 on-shore, (return to the levels of the ‘90s in 2020) joint exploration. Moreover, in 2013 a 21 off-shore) and 200 production b. development of new natural gas specific Commission will be created concessions (134 on-shore, 66 off-shore) OMCNEWS 2013 storage (from ~ 15.6 bScm to ~ 25.9 in order DAYto discuss2 the relevant legal are in place. bScm by 2020) aspects. Also in order to encourage In general, the Italian Regions involved at c. the modernization of governance exploration projects with Malta, through an higher level in onshore hydrocarbon systems (e.g. public consultation) a Ministerial Decree emitted on 27 exploration and production activities 2. constant monitoring of the normative December 2012, marine zone “C” was are Emilia Romagna, Lombardy and framework with a potential impact on extended (areal extension highlighted Basilicata. OMCNEWS 2013 mining activities and on authorization in red withinDAY 3the map below). In 2012, activities of drilling and procedures relevant for the Directorate. 3. further to April 2010 accident of completion have been carried out on 3. for the South Methanization program, Macondo well - Mexico Gulf - the 40 wells, which have been drilled for in 2012, practical tests have been European Commission adopted in 2011 different purposes: implemented for 37 interventions, the scheme of “Regulation proposal - Production optimization (work-over) - bringing to 515 the total number of of European Parliament and Council 18 wells such initiatives. For the conclusion on Safety of offshore hydrocarbon - Production - 9 wells of the program (2,000 million euro exploration and production” (“Offshore - Gas storage - 8 wells have been already utilized) it will be regulation”), which has the aim of setting - Exploration - 4 wells necessary to invest 20 million euro high quality minimum standards for - Monitoring - 1 well more, yet to be funded. these off-shore activities thus reducing Moreover it has to be highlighted that in 4. on 20 September 2012 a Memorandum of Understanding between the Ministry of Economic Development and the Sicilian Region was signed with the aim of promoting the sustainable development of national hydrocarbon resources by encouraging investments for exploration, production and utilization. In 2012 the Directorate continued its normal technical and administrative activities related to the management of concessions at a central level and to the monitoring / verification of industrial plants through UNMIG regional offices.

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2012, 5 wells have been closed, while 22 probable and possible - show a decrease carried out finalized at elaborating the new wells have been drilled. 4,7% for gas and an increase of 7,5% for “Communication Decree”, currently being These data show that Operators activity oil, excluding 2012 production. emitted, which will define contents and is currently focused on production modalities of communication to theDAY public 3 OMCNEWS 2013 optimization of well-known reservoirs Natural Gas Storage of information on CO2 storage. more than on the exploration of new Currently the operating gas storage fields Moreover, with reference to the Envi- areas and resources. in Italy are 10, all located in depleted ronmental Strategic Evaluation (VAS in With reference to exploration activities, on shore gas reservoir, while storage Italian language) relevant for identifying in 2012, 4 exploration wells have been concessions already in force are 15. areas where CO2 storage will be allowed, drilled, only 1 with positive results (gas With reference to Thermal Year 2011/2012 Environment Ministry and Economic De- target - well CASA TIBERI 001 - explora- the overall working-gas capacity of the velopment Ministry created a technical tion concession of MONTEMARCIANO gas storage system is 15,620 MSm3 group finalized at structuring a Preliminary located in Ancon Province). With respect (5,100 MSm3 dedicated to the strategic Report to be distributed to competent au- to 2011, when no exploration wells have storage), while the withdrawal capacity is thorities for consultation. This document, been drilled, it can be noticed an increase 274.6 MSm3/d. completed in 4Q2012, defines premises on exploration activities. Including the cushion-gas, the overall ca- and advantages of utilizing CCS techno- In 2012, hydrocarbon production in Italy pacity of storage fields is 27,636 MSm3. logies and identifies the critical elements slightly increased with respect to 2011, Moreover, during 2012, the storage con- of the methodology to be utilized for the +2% for oil and +2% for gas. In particular, cession “Cugno Le Macine Stoccaggio” identification of areas where CO2 storage last ten years have been characterized was released to the company Geogastock will be forbidden and of those where CO2 by a first phase of decreasing production, S.p.A.: an increase of storage capacity storage will be allowed. which reached its minimum in 2009, and (approx. 700 MSm3) is expected by 2015 Finally, in 2012, the first request for a by a more recent phase of increasing and a possible further increase (approx CO2 storage exploration concession production, started in 2010 for the oil and 1,300 MSm3) is foreseen by 2020. has been presented, for off shore area in 2011 for the gas: year 2012 confirms With reference to the following storage located in the central-northern Adriatic this positive trend. With reference to concessions, the construction of new Sea between Pesaro and Senigallia. the oil, the increase is mainly due to the storage plants is currently on-going: “S. The request (identified with the name of revamping of fields located on-shore, Potito e Cotignola Stoccaggio” (W.G. 915 Sibilla) is currently being evaluated by more than off-setting the natural off shore MSm3), “Bordolano Stoccaggio” (W.G. the Ministry of Economic Development reservoir depletion. 1,200 MSm3) and “Cornegliano Stoccag- and the Ministry of the Environment and With reference to the valorization of hydro- gio” (W.G. 1,300 MSm3). Protection of Land and Sea through VIA carbon production rates for 2012, it has (Valutazione di Impatto Ambientale - been defined through market mechanisms: Geothermal resources Environmental Impact Assessment). corresponding royalties will be re-distri- In 2012, the Directorate received further buted among State, Region, Town halls requests for approval of pilot projects Environment and safety most likely in 2013 and 2014. Moreover, finalized to the exploitation of geothermal With reference to hydrocarbon exploration an amount of royalties of about 334 M€ re- resources, thus saturating the maximum and production activities (excluding Sicily ferred to part of 2010 and 2011 production, allowed power capacity (50MW). on shore), in 2012, 36 accidents occur- have been re-distributed in 2012. red (19 during drilling activities, 15 during Finally, at 31 December 2012, data on CO2 storage production activities and 2 during storage reserves - to be distinguished in proved, In 2012, some activities have been activities), none of them deadly. With respect to 2011, while in 2012 the safety indicator referred to production activities (number of incidents/produced ktep) remained unchanged, with reference to drilling activities, the safety indicator (number of incidents/drilled depth in meters) increased of about 60%. Therefore, the main safety criticalities will have to be identified by Operators analyzing the management of drilling activities – focusing on manual load handling and equipment managing. For example, it would be worthy to monitor Contractors in a stricter manner in order to verify the effective application of safety procedures on the field. Finally, with reference to environmental analysis, in 2012 continued the monitoring activity on point source emissions coming from hydrocarbon treatment plants. 5 DAY 1 DAY 2 OMCNEWS OMCNEWS 11th Offshore Mediterranean Conference • Ravenna, Italy • 20 March 2013 11th Offshore Mediterranean Conference • Ravenna, Italy • 21 March 2013

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DAY 3 PETROLEUM SYSTEMS IN THE WESTERN PO VALLEY The Desana gas field OMCNEWS 2013 DAY 3 The Western Po Valley contains the under- OMCNEWS explored extension of the prolific petroleum 11th Offshore Mediterranean Conference • Ravenna, Italy • 22 March 2013 systems well known to the east in the Po Valley and Northern Adriatic. The presence of P rospectivity gas in Miocene turbidite reservoirs is known both from the Desana gas field and from the Robbio-1 well. The reservoir in the Desana gas field appears to consist of Tortonian thin- bed sands, deposited either in a distal lobe or levee environment, whilst Robbio encountered gas in Upper- Mid Miocene sand and breccia-filled channel bodies. Two thermogenic source systems can be identified in the study area: oil-prone Triassic basinal carbonates that are the source for the Villafortuna-Trecate & Malossa OMCNEWS 2013 fields and the Miocene deepwater shales encounteredDAY 1 in the Robbio-1 well. Interpretation of available 3D seismic data allows leads to be identified at a number of Miocene levels. These leads are commonly stacked and include both structural and stratigraphic traps. Both types of trap are generally associated with amplitude OMCNEWS 2013 anomalies, although it is presently not clear whether DAYthis 2 is caused by lithological variation or by the presence of hydrocarbons. A first approach to assessing the nature of the seismic amplitude anomalies has been to compare Gas-In-Place volumes for the identified leads, OMCNEWS 2013 based on the assumption that amplitude anomaliesDAY 3 reflect the presence of gas, with the results of simple charge models that estimate the volume of gas that could be supplied to each lead from Miocene and Triassic petroleum systems. This work indicates that the Triassic Petroleum System could have generated sufficient gas to explain the observed amplitude anomalies, whilst insufficient volumes are generated by the Miocene Petroleum system. It is thus concluded that the significant resource potential indicated by the amplitude anomalies form a viable exploration objective, B. Bosica, but are dependent on a working Petroceltic Italia srl Triassic Petroleum System in the study area.

B. Bosica, Petroceltic Italia srl, P.R. Shiner, Petroceltic Italia srl. www.petroceltic.com

DON’T MISS SPECIAL SESSION SOCIAL RESPONSIBILITY IN FRONTIER AND MATURE AREAS Tomorrow morning 9.00-10.40 - ROOM A

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DAY 3 Calculating permeability structures in Val D’agri The factors which influence the hydraulic properties of DAY 3 OMCNEWS 2013 the studied zone are: the asymmetry of the damage zone, voirs OMCNEWS the length of the fractures and anisotropy of the fractures orientation 11th Offshore Mediterranean Conference • Ravenna, Italy • 22 March 2013 C omplex R eser The high-angle faults system that affects the the directional permeability Appeninic platform carbonates cropping out in increase that occurs in the the Val d’Agri area is composed of a main WNW damage zone, parallel to Maurizio Giorgioni, Shell E&P oriented left-lateral strike-slip fault and several the fault core. On the other associated secondary faults: N020°±N030° trending right- hand, across fault permeability dramatically decreases. lateral/transtensional, N090°±N110° trending left-lateral In this paper, with the aim to compute the relative transtensional and N130°±N150° trending left-lateral permeability between the host-rock and fault zones, as transpressional. Even if these faults are characterized well as to evaluate the hydraulic properties of different fault by different dimensional parameters (i.e. length and zones architecture, a Discrete Fracture Network (DFN) displacement) and architecture (i.e. fault core and damage model, using the software MOVE, is constructed as a rock OMCNEWS 2013 zone thickness), qualitative classifications relativeDAY to 1the mass where key faults, belonging to the Val d’Agri Fault hydraulic properties of fault zones suggest that both faults System (Cello et al., 2000; Mazzoli et al., 2001; Cello et al., (strike-slip and normal) could act as conduits for subsurface 2003), are included. For each sector (i.e. host-rock and fault fluid flow. zone) the main fracture sets were characterized in terms of In this paper, with the aim of compute the relative density, height, and opening. Then, directional variations of permeability between the host-rock and fault zones as the permeability are shown and relate on the preferential OMCNEWS 2013 well as to evaluate the hydraulic properties of bothDAY strike- 2 orientation of the fractures, their interconnectivity and slip and normal faults, a Discrete Fracture Network (DFN) length. Defining the key parameters, which control the model, was constructed using the software MOVE. The permeability in tight carbonate rocks, represent an DFN model of the rock mass including two fault zones and important insight to implement predictive modeling tools. the host-rock proves that the total permeability is higher This piece of information can help the management of OMCNEWS 2013 for the fault zones and between the faults is higher DAYfor 3the geofluids, as well as the overall prediction of fractured normal fault. Directional variations of the permeability are carbonate reservoir quality. also shown and relate on the preferential orientation of the CONCLUSIONS fractures together with their interconnectivity and length. Two faults belonging to the Val d’Agri Fault System INTRODUCTION in southern Apennines and crosscutting tight platform In several geological contexts, carbonate rocks are carbonates were characterized in terms of the geometry characterised by the development of wide deformation and kinematics. According to Caine’s (1996) classification zones in which strain is distributed (host-rock), and zones of hydraulic properties of the faults, the architecture of the in which deformation is adjusted by localised discrete studied faults (strike-slip and normal) assumes that they structures such as fault zones. The combination of the two could constitute good conduits for fluid flow. The ratio deformation systems (diffused and localised) constitutes a between fault damage zone and fault zone tends to the discontinuity network that defines the hydraulic properties value of 1, which means that the sealing effect of the fault of the carbonate rock mass. In terms of hydraulic properties, core is not high. the fractured and faulted carbonate reservoir can, therefore, A DFN model of the rock mass including the two fault be characterised by a connected primary porosity, defined zones and the host-rock was constructed in order to by the composition and texture of the rocks, and by the calculate its permeability. The obtained results show characteristics in terms of spacing and connectivity of that the total permeability is higher for the fault zones the diffused discontinuities, and by a secondary porosity and between the faults is higher for the normal fault. determined by fracture networks and discontinuities in Directional variations of the permeability are also shown correspondence to fault zones (Billi et al., 2003; Kim et al., and relate on the preferential orientation of the fractures, 2004; Agosta et al., 2007; Agosta et al., 2010). their interconnectivity and length. For example, the host- The structural architecture of fault zones in tight (e.g. rock could represent better conduit for fluid flow along the cohesive, slightly porous) carbonate rocks includes major orientation of the present fractures. The host-rock highly fractures sectors (damage zones) encompassing permeability also increases in the block in between the cataclastic bodies where most of the fault displacement is damage zones and decreases in the other parts. Based localized (fault cores). The typical dual component structural on the integration of field data and computer modelling, architecture of fault zones is replicated by the hydraulic we can affirm that the factors which influence the hydraulic one (Caine et al., 1996; Cello et al., 2001; Faulkner et al., properties of the studied zone are: the asymmetry of the 2010): secondary porosity and permeability significantly damage zone, the length of the fractures and anisotropy of increase in the damage zone, while the fault core behaves the fractures orientation. as a barrier. The control exerted by the structural fabric M. Giorgioni, Shell E&P, I. Korneva, E. Tondi, University of Camerino, on the hydraulic behavior of fault zones is well evident in F. Agosta, University of Basilicata, A. Cilona, Midland Valley Exploration Ltd. 9 DAY 1 DAY 2 OMCNEWS OMCNEWS 11th Offshore Mediterranean Conference • Ravenna, Italy • 20 March 2013 11th Offshore Mediterranean Conference • Ravenna, Italy • 21 March 2013

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DAY 3 RINA Group, expanding in spite of the crisis Interview with Leonardo Brunori, Chief Operating Officer Business Solutions

OMCNEWS 2013 The international crisis can be a growth opportunity for some companies. This is the case of DAY 3 RINA Group, which, by merging with D’Appollonia, has given birth to a state-of-the-art center OMCNEWS of technology and know-how for engineering consulting. We talk about it in this interview with 11th Offshore Mediterranean Conference • Ravenna, Italy • 22 March 2013 Leonardo Brunori, Chief Operating Officer Business Solutions of RINA Group, where he also discusses the paper “life extension of a fixed offshore platform structure based on monitoring INTERVIEW results”, which will be presented this morning in Room D from 10.05 to 12.14.

Leonardo Brunori, You are again back at this year’s OMC. RINA by availability of monitoring data. Rina Chief Group has grown since the last session thanks to The international crisis is increasingly Operating Officer acquisition of the D’Appolonia group. How is the merger violent. What are your strategies for Business Solutions coming along? Will you be hiring? dealing with it? Today we can affirm with certainty that the acquisition of The crisis, even though it is global, does not have equal D’Appolonia, based on integration of skills and improvements impact in all parts of the world. RINA is concentrating on through synergy, has widened our engineering knowledge on internationalization, especially in areas that are feeling the the group level in various sectors, making it possible for RINA crisis less, and to do that we are aiming at extending the OMCNEWS 2013 to become a protagonist in consulting engineering. DAY 1 package of services offered so as to respond better to the The process of integration of our companies has come about needs of the various clients. in a natural way, with everyone desiring to cooperate to reach RINA’s portfolio of services is a broad one today, covering common goals, getting to know one another and facing new all phases of a project’s development from preliminary realities together. investigations to the study phase and EPC, all the way through In this edition you are presenting a study on offshore to operations. Integration with the services of D’Appolonia DAY 2 OMCNEWS 2013 technologies with Edison. What is that about? and C-Engineering has been decisive in this. A fundamental The paper describes the actions taken to extend the lifespan key for success is to offer a package deal, taking advantage of the Vega A platform in the Strait of Sicily, where it has been of all the skills of the various companies of the group working possible to calibrate a model thanks to the availability of a in the Oil & Gas sector. historical series of meteo-marine data and of the measurement Which markets are flourishing? Which are the most OMCNEWS 2013 of the structure’s acceleration. DAY 3 sluggish? The requalification process is based on the stress test of the The least dynamic market is the one linked to investments jacket and on the evaluation of the conditions of the structural made in Italy, a country where the challenge is to consolidate components and of the topside. This activity is part of our our good position. Asset Integrity Management, which is ever more strategic for The most flourishing energy markets are those of Southeast RINA because of the high number of plants around the world Asia, India, the Emirates, Africa and South America. Here RINA that are coming to the end of their scheduled operating life. Group is leveraging its diversified skills and implementing a How did the idea of this paper in collaboration with decentralization of its technical and management capacities. Edison come up? For instance, today we have a local structure of over 100 The peculiarity of the case presented is linked to the high people in India dedicated to Oil & Gas, and similar structures quantity of data made available by the environmental and are growing in Indonesia, where important contracts have been structural monitoring system installed on Vega A at the outset. acquired like the PMC for the FSRU South Sumatra for PGN This information has made possible calibration of the model, and the FEED of the first project of marine CNG for PLN. In Abu which reports the response of the model to environmental loads. Dhabi and in Turkmenistan we are proceeding with certification We wanted the paper to give a description of the process of of 14 offshore projects in the Caspian for Dragon Oil. structural reassessment and to illustrate how that is facilitated Azzurra Pacces

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Minimizing Time to Experience DAY 3 and Maximizing Performance

Background DAY 3 OMCNEWS 2013 A NIES Industrial companies are in the midst of a human resource crisis: after an increase of the median working age, a large OMCNEWS segment of the industrial workforce is now on the verge 11th Offshore Mediterranean Conference • Ravenna, Italy • 22 March 2013 COMP of retirement and every industrial operation is challenged with filling in positions requiring highly skilled, proficient B Y and experienced workers. Fortunately, Invensys state-of- the-art approaches allow to drastically reducing the “time training with the introduction of low-cost virtual reality interfaces to experience” of employees increasing their performance to rigorous, first principle model simulators. These virtual reality to new levels. systems enable operations and maintenance personnel to engage Personnel Performance Management in highly effective, yet safe, immersive training environments, Years ago, new operational employees used to follow an initial significantly reducing the time to experience for operations and training and worked under supervision. Industrial jobs were so maintenance personnel, while helping close the experience gap challenging and industrial operations so complex that it might take that is plaguing industry. years for a worker to progress. The traditional progression worked Beyond Time to Experience - Continuous Performance well because the workforce was continually comprised of a number Improvement OMCNEWS 2013 of employees at different levels of progression. Unfortunately,DAY from 1 For decades on-the-job training (OJT) was critically effective, the early 1990s to today, there have been fewer people entering but it involved a highly experienced worker supervising the the industrial workforce, due to economic downturns, downsizing, behaviour of less experienced workers. Recent advances are and other factors. now providing environments in which automatic, electronically Today, the traditional approach does not suffice and reducing the produced information on the operations and financial performance “time to experience” of employees is becoming a key asset. DAY 2 of the enterprise is available, and accessible to every person in OMCNEWS 2013 Minimizing Time to Experience in Industrial Environments the operation. Whether they are a stationary worker at a traditional through Simulation workstation or a remote worker using a mobile wireless unit, A combination of academic, experiential and on-the-job training real-time operations intelligence can be provided in a format (OJT) is the most effective way to reduce the time to experience commensurate with each person’s experience, training and of new employees and workers. Although classroom training capability. OMCNEWS 2013 is critically important, research has demonstrated that studentsDAY 3 Experience with real-time OJT performance can drive both the retain less than 30%, and instructors need to go over important operational and financial performance delivered by every person points at least three times in order to get to this level. to measurable and previously unattainable levels. In fact, on Experiential training approaches provide a higher level of average this type of training realizes a 100% return on investment retention than academic approaches within three months. Unfortunately, many industrial processes are significantly Conclusion negatively impacted through inexperienced operations and Invensys Operations Management can design a solution that maintenance teams. Plant management is justifiably reluctant to meets the needs of any industrial organization requiring to rapidly allow inexperienced operations personnel to get the level of live bringing the workforce to an adequate level of proficiency to take on-the-job experiential training required to truly reduce their time over operations. The Invensys approach can raise the overall to effectiveness. The solution to this is “near-time experiential experience level to fill the gap left by retirements, and can it training” using training simulators or virtual reality systems to drive measurably increased profitability through better human give operations personnel first-hand experience to multiple levels performance management, resulting in 100% returns within three of detail and sophistication. Full rigorous, first principle model months. simulators allow operators to experience a simulation which is If the experience gap is a problem in your operation, or if you would as close to a real plant operating environment as possible. This like to drive more performance from your current workforce, it may near-time experiential approach to training can significantly reduce be time to learn more about Invensys Operator Training Simulators the time to experience for operators by enabling them to learn and EYESIM™ Immersive Virtual Reality Training System: visit us through a hands-on approach to deal with both normal operational at iom.invensys.com/virtuallybrilliant situations as well as exceptional situations. Recently, there has been a major breakthrough in the area of near-time experiential By Peter G. Martin, PhD, Vice President and Invensys Fellow.

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The best technique DAY 3 for increasing reserve A talk with the Leopold Bräuer, OMV DAY 3 OMCNEWS 2013 Polymer injection vs water-alterning gas. What’s the best technique for increasing reserve? Here the point of view of Leopold Bräuer, OMV, chair OMCNEWS of this afternoon session (room C, 14.3.-16.05). 11th Offshore Mediterranean Conference • Ravenna, Italy • 22 March 2013

R eserves What are the topics that will WAG (water-alterning-gas) process be discussed during the investigation. technical session chaired And the more advanced ones to by yourself? increase productivity? The session will discuss advanced This is water injection strategy changes. methods of measurements while Can you tell us briefly the cases drilling and a raft of EOR processes history will be discussed? Leopold Bräuer, OMV and case studies. One case history comes from the What are the most technologically Vienna basin: polymer injection, and advanced news on incresing reser- another one comes from Italy (WAG) The difference between the two ves? What are the similarities and cases is the process used: WAG vs. polymer injection. OMCNEWS 2013 The breaking news is polymer differencesDAY between1 Austria and injection on medium viscous oils and the south of Italy? Azzurra Pacces

Who’s who Leo Bräuer is a Chemical Engineer and works for OMV since 1982. OMCNEWS 2013 He started in the Laboratory for Exploration andDAY Production 2 and did various publications on different subjects of Enhanced Oil Recovery and Condensate Technology. He held various positions in OMV-EP: manager for facilities engineering, technical advisor to PETROM, manger project desk gas, advisory board member to OMV Future Energy Fund etc. Currently he is holding the position of a Head of Department for Technology Development and Application in OMV-EP. He is also Honorary Professor at Austria´s Mining University in Leoben. OMCNEWS 2013 DAY 3

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Protecting the community DAY 3 and the environment This morning, room C OMCNEWS 2013 The oil and gas industry is facing the DAY 3 greatest environmental, health and safety challenges in its entire history. Its social

OMCNEWS Sa fety license to operate increasingly depends 11th Offshore Mediterranean Conference • Ravenna, Italy • 22 March 2013 on demonstrated environmental and social responsibility. Many oil and gas companies Franca recognize that a sustained license to operate Mazzatorta, requires the effective management of non- Shell technical risks. This is why they work to develop business strategies and plans to improve their economic performance, while at the same time demonstrating the highest standards of environmental and social performance. The session “Protecting the environment and the community” is designed to provide participants with an opportunity to discuss air, water and soil quality issues that represent risks in many areas of the world, through examples that highlight both the complexity of the challenge and the drive and the creativity OMCNEWS 2013 which are instrumental to sustainable solutions. The sessionDAY 1also acknowledges the importance of social investment in the community as a key enabler of trust and credibility. Speakers in the session will advocate a multidisciplinary approach to ecological risk analyses in sediments impacted by the oil industry, and will describe a short- term community investment project in Ghana based on the needs of DAY 2 OMCNEWS 2013 the local community. They will also describe advanced approaches to continuously improve water and GHG emission management activities. The common theme of the session is bringing interesting and robust input to the sustainability debate and offering a platform for dialogue to wide range of stakeholders. Franca Mazzatorta, Shell OMCNEWS 2013 DAY 3

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continues from page 1 u figure fell to 480, a loss of 150 million – the equivalent of all contracts cannot rest on the shoulders of the purchasers. The of Gazprom’s exports to Europe”. Thus new roles should ministries of the countries concerned must find other methods be taken into consideration: “we buyers and producers that do not depend on contracts alone”. must understand that the world has changed and that that North Africa. Eni is “by far the biggest operator in North DAY 3 OMCNEWSother world will not 2013come back and therefore we have the Africa, and 30% of its production comes from this area”. obligation of making our gas supply contracts conform to the Scaroni said he was “highly optimistic about the evolution of new conditions”. Eni is “renegotiating its contracts with all the situation. In Egypt and Algeria, we have not lost a single operators, including Statoil, Libya’s Noc, Algeria’s Sonatrach barrel of production. In Egypt, the situation seems to me to be and Gazprom”, and by the end of the year the process will evolving in the right direction”, while in Libya the situation is be completed “if not with all of them, at least with most”. far more complex. “But even there, I see it improving: fewer Scaroni added that he is “confident that Eni will be able to weapons on the street, greater order, greater desire to get adapt the gas contracts to a highly changed reality”. After moving “. that, he warned, “if there is a supply problem, don’t look at Iraq. Scaroni defined this country “an Eldorado. When the us. This guarantee of supply security given by the take-or-pay market opened, we at Eni threw ourselves into it head over

The crowded Conference Hall

Eni Ceo, Paolo Scaroni Innocenzo Titone, Omc 2013 Chairman, and Gianfranco Bessi, Ravenna Chamber of Commerce

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heels. But it remains a complicated country. The system must find a pace for authorizations compatible with the requirements of production”. He added that “we do not ADRIATIC GOLF CLUB CERVIA Via Jelenia Gora, 6 48016 - Milano Marittima (RA consider it an option to go into Kurdistan: we promised Tel. 0544-992786 Fax. 0544-993410 OMCNEWS 2013 the then minister al Shaaristani and we are keeping our DAY 3 word”. Tuesday 19th March 2013 As for Italy, Scaroni stressed that this country needs an authorization system that makes it possible to explore omc GOLF TROPHY 2013 within the 12 mile limit, where most of the hydrocarbon reserves are to be found. “We are a hydrocarbon country Lousiana’s 18 holes, 4 players – he commented – unlike France and Spain, we have Single category these resources and we must find the collective will to make this wealth available to all”. Economic development ministry undersecretary 1st team Claudio De Vincenti then spoke, making the point that EMILIO ADDANTE - GIOVANNI LA MELA Europe cannot replicate America’s shale revolution, STELIO GARDELLI - LUCIANO MINGHETTI 50 both because the resources are not so abundant and 2nd team because there are higher population densities and more rigid environmental checks. CLAUDIO MAGGIONI - FRANCESCO BIANCHI Ossama Kamal, Egypt’s oil minister, observed that the GIOVANNI SCAPINI - FRANCESCO MAZZOTTI 48 potential of the Mediterranean is found mainly in ultra 3rd team deep waters, hence the need for a rapid technological PIETRO FONTANI - CRISTIANO ZALAMBANI evolution. Another aspect is the increase in domestic demand in nations that once were only producing RENATO HALLEKER - JOSKO MAROCHINI 47 countries. 4th team The matter of increasing consumption in producing GUIDO LEONI - FERDINANDO BORTOLAN countries was emphasized also by Ahmed Mecheraoui, EMANUELE SOLARI - MONIKA SPRINGER 47 consultant of Algeria’s Ministry of Energy, who said that domestic consumption in his country “is increasing by 15% a year”, as well as by Bruno Lescoeur, Ceo of SPECIAL PRIZES Edison: “there are no longer pure producers and pure Men’s Driving Contest MASSIMO MILANDRI consumers”, he observed. The Mediterranean area Women’s Driving Contest NIDA CANDARLI “certainly cannot change the balance of global energy Men’s Nearest to the Pin SAURO PANNOCCHIA 1,44 mt markets, but it can have an effect on the European market”. As for Italy, Lescoeur affirmed that “Edison Women’s Nearest to the Pin ANNA ROSA GUERRINI 10,10 mt supports the national energy strategy: we hope - he concluded - that it will be used as well as possible by the next government”. Abdulkareem Luaibi, Iraq’s oil minister, announced that his country is aiming to produce 9 million barrels of Thursday 21st - Side Events oil equivalent a day in the near future and that shortly ten exploration blocks will be open for bidding. “In five years we will invest $130 billion, we will drill more than 3,000 wells and we will construct facilities for production From 9.00 all day Galleria (1st floor, Hall 2) and storage “, he explained. SPE Student Contest - Student Arena Malla M. Said of Sonatrach summed up recent discoveries in Algeria: in 2012, Sonatrach drilled 24 From 10.00 all day Room A (1st floor, Hall 6) new wells and seven more with partners. He added that Oil & Gas companies meet future professionals “Algeria needs technology for offshore exploration and for research for unconventional resources”. Abdugasem Zwary and Ibrahim Fituri of Libya’s Noc From 9.00 all day Galleria (1st floor, Hall 6) reiterated the immensity of their countries’ reserves, B2B meetings organised by 20.5bn barrels of oil and 81 TCF of natural gas. In closing, Jonathan Lewis of Halliburton presented data on the shale boom in the United States: a contribution to the Gdp of 1,000 billion dollars, taxes for 100 billion, two million direct jobs and eight million 11.00 - 13.00 Sala Verde (1st floor Hall 6) in satellite industries, with an annual growth of 9%. He presentation by added that in the golf courses of the US, five times as much water is used than the amount needed to extract gas from the country’s schist. GM 19 DAY 1 DAY 2 OMCNEWS OMCNEWS 11th Offshore Mediterranean Conference • Ravenna, Italy • 20 March 2013 11th Offshore Mediterranean Conference • Ravenna, Italy • 21 March 2013

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TODAY’S AGENDA Thursday 21th March

9.00 exhibition area opens Alternate • Improved Integrity & Reliability for Subsea Hydraulic 9.00 Workshop Multi-function Connections DAY 3 OMCNEWS Facing the new 2013Oil&Gas challenges: Automation Industry 13.00 working Lunch, guests of HALLIBURTON today is able to provide solid technologies to enable Oil 14.30 Technical Sessions companies in improving production optimization, energy Risk Evaluation and Training (Room B) management, process control, and safe operations in 14.30 • A Method for Evaluating the Safety Risk Cost in E&P Activities conventional and unconventional fields. (Sala Verde) 14.55 • The Offshore Safety in O&G Industry: a New Regulatory Framework 9.00 Technical Sessions 15.20 • Benefits of Using Dynamic Simulations and 3-D Virtual Reality drilling Fluids (Room B) for Safety 9.00 • High Performance Drilling Fluid Application 15.45 • Offshore Floating LNG Projects Main Challenges in the Val d’Agri Development Increasing Reserves (Room C) 9.25 • Field Lubricity Measurements Correlate with Improved 14.30 • Well Placement & Proactive Geosteering, the Path for Adding Performance of Novel Water-Based Drilling Fluid Reserves and Increasing Productivity. Southern Italy Carbonate Alternate • New Automated Lubricity Tester Evaluates Fluid Reservoir Case History Additives, Systems and their Application 14.55 • New Logging While Drilling Ranging and Formation hydrocarbon Prospectivity of Different Basins 1 (Room B) Evaluation Technique 9.50 • Prospective Zones for Shale Gas in Tinrhert (Illizi Basin) 15.20 • Experimental Investigation of Immiscible Water-Alternating 10.15 • Wireline Logging Including 2-Dimensional NMR and Downhole Gas (WAG) in Viscous Oil Spectroscopy Facilitates Accurate Identification of Pay and 15.45 • Polymer Viscosity in Porous Media and Near Wellbore Behaviour Composition of Formation Fluids in a Complex Reservoir of a Polymer Pilot in the Matzen Field, Austria Alternate • A Tool for Fast Underground Characterization for Trenchless Alternate • Egypt’s Waterflood Strategy Changes, Challenges and Innovations Pipeline Construction by Horizontal Directional Drilling Technology Unconventional Resources 1 (Room D) protecting the Community and the Environment (Room C) 14.30 • Hydraulic Fracture Optimization in Unconventional Reservoirs 9.00 • Ecological Risk Analyses in Sediments Impacted by the 14.55 • Shale Gas Well Fracturing Technologies Help Address HSE Concerns Oil Industry: a Multidisciplinary Approach 15.20 • Environmentally Friendly Drilling Fluids for Unconventional Shale 9.25 • Eni Ghana Short - Terms Community Investment in 15.45 • Numbers Do Not Lie: Charting for Optimization of Completion and Effasu - Jomoro District Stimulation in Bakken Shale Horizontal Wells 9.50 • Water Management Approach in O&G Alternate • Coal Seam Gas Water Treatment Facilities in Australia 10.15 • GHG Management: eni’s Approach 14.30 Workshop Alternates • Community Health and Community Investment Initiative Offshore Service Vessels: Features, Technology, Innovation in Effasu Ghana (Sala Verde) Alternates • Community Health and Infrastructural Project Management: 16.10 coffee Break offered by WEATHERFORD a Company Approach to Sustainable Development 16.25 Technical Sessions deepwater Technologies (Room D) Monitoring, Inspection and Operations (Room B) 9.00 • Design Considerations for ‘Dual Band’ Communications 16.25 • Offshore Environmental Monitoring Management in Oil&Gas Activities: on Subsea Umbilicals as a Tool for Field Extensions of eni Experience on Baseline Acquisition and Operational Phases Subsea Production Control Systems 16.50 • A Wireless Sensor Network for VOC Emissions Monitoring 9.25 • Deep and Ultra deep Riser Concepts Allowing to Maximize Local Content 17.15 • Monitoring and Inspection Activities Related to Facility Integrity 9.50 • Large Bore Pipeline Connection Systems for Deepwater Management at Adriatic LNG Gas Developments 17.40 • Safe Delivery of the Day 10.15 • Assessing Component and System Reliability of Offshore Structures Advanced Methodologies For Complex Reservoirs (Room C) 10.40 coffee Break offered by WEATHERFORD 16.25 • Estimation of Skin in the Interpretation of Injection Tests in 11.05 Technical Sessions Fractured Reservoirs Hydrocarbon Prospectivity of Different Basins - part 2 (Room B) 16.50 • Permeability Structures of Fault Zones Crosscuttings Tight 11.05 • Hydrocarbon Prospectivity and Risk Analysis of an Under-Explored Cretaceous Platform Carbonates (Val d’Agri, Southern Italy) Western Kirthar Fold Belt of Pakistan 17.15 • Reservoir Uncertainties Resolved Via Global Optimization 11.30 • Carbonate Reef Growth Vs. Siliciclastic Input in Gulf of Suez: Strategies Coupling SAR Interferometry and Geomechanical Impact on Hydrocarbon Exploration Modelling. The Tengiz Case Study 11.55 • Petroleum Systems and Miocene Turbidites Leads in 17.40 • Advanced Logging Technology and Computational Methods the Western Po Valley Resulted in Confident Petrophysical Information and Successful 12.20 • Exploration Approach of the South East Constantine Basin Algeria Production Testing completion (Room C) Unconventional Resources 2 (Room D) 11.05 • Thermo-Settable Cross-linked Polymer System for Optimization of 16.25 • Well Optimization using a LWD Spectral Azimuthal Gamma Ray Wellbore Stability and Zonal Isolation Tool in Unconventional Reservoirs 11.30 • Open Hole Gravel Pack: from Trial to Large Scale Development 16.50 • Supervised Neural Network Algorithms: a Proved Successful 11.55 • High Compressive Strength Build Up Cement Application for Methodology to Identify Unconventional Layers Opens New Horizontal Multi-Frac Wells Potential Development Scenarios of Abu Qir Fields in the 12.20 • Achieving Brazilian Extended Reach Drilling Records on Polvo Mediterranean Sea Offshore Egypt Project with Ultra-High Torque Connection Alternate • Stimulation Tuning: A Technique for Shortening the Learning Curve offshore Technology (Room D) for Developing Source Rock Reservoirs 11.05 • Life Extension of a Fixed Offshore Platform Structure Based Technologies For The Future 1 (Room D) on Monitoring Results 17.15 • Nanotechnology Application in Drilling Fluids 11.30 • Next Generation High Performance Casing Connector for 17.40 • Injection Water Indigenous Bacteria; Novel Electrical Energy Subsea Drilling and Production Source in Algerian Oil Fields 11.55 • New Technologies for Offshore Piles Installation 18.00 exhibition area closes 12.20 • FSO Replacement in the Rospo Oil Field, Italy 20.00 gala Concert (upon invitation only), guests of SHELL

OMCNEWS 2013 Edizione speciale della / Special edition of STAFFETTA QUOTIDIANA - 21 marzo 2013 Petrolio gas elettricità e altre fonti di energia - Oil gas and power in Italy Direttore responsabile / Editor in chief Pubblicità e marketing / Advertising & marketing Redazione e produzione / Editing & production Goffredo Galeazzi Paolo Angelini RIP Srl Direttore emerito / Director emeritus Progetto grafico / Graphic layout Roma - 00145 - Largo Luigi Antonelli, 30 Giorgio Carlevaro Studio Giano di Fabrizio Pensa - Roma e-mail: [email protected] Direttore editoriale / Editorial director Editore / Editor www.staffettaonline.com Giovanni G. Borromeo RIVISTA ITALIANA PETROLIO Srl Reg. Trib. Roma n. 4304 del 7/12/54 20 DAY 1 DAY 2 OMCNEWS OMCNEWS 11th Offshore Mediterranean Conference • Ravenna, Italy • 20 March 2013 11th Offshore Mediterranean Conference • Ravenna, Italy • 21 March 2013

DAY 3 OMCNEWS 11th Offshore Mediterranean Conference • Ravenna, Italy • 22 March 2013 Oil & Gas in Italy: the importance of communication Assomineraria’s seminar sees consensus as basis of new projects’ success

The measures taken by Italy’s government were the voices opposing a new startup light, he concluded, “OMC can play an to launch the country’s upstream business of national hydrocarbon production”. To important role” in communication to those anew have borne their first fruits in terms build consensus, Senni added, “what who are not in the business. Thanks to of a production increase, and they have is useful above all is an increase of development of upstream projects, even also awakened a lively new interest on the economic returns and employment in the local and regional authorities, who often part of operators. Proof of this interest was territories concerned by the initiatives”, are contrary, “could offer inhabitants the unprecedented number of participants and he announced that the ministry better conditions and avoid emigration”. registered Wednesday at OMC2013. would soon emanate a decree promoting But Terlizzese then added that before Within this more favorable regulatory this. According to Franco Terlizzese, communicating “to outsiders”, it is DAY 1 picture,OMCNEWS the aspect now 2013 needing the most director of mining and energy resources necessary that there be “a reflection on work is that of communication, a focus of of the Economic Development Ministry, the part of the productive forces in the the seminar on “O&G in Italy: reaching the “it is necessary to go to the territory territory because often opposition comes industrial targets of the National Energy and emphasize that upstream business from the other sectors of production”. Strategy”, organized by Assomineraria as is a high technology sector”. In this G.M. a Wednesday afternoon event. Effective communication is necessary for DAY 2 initiatingOMCNEWS new projects, 2013 avoiding rejection on the part of the local population. “The commitment of Assomineraria - the association’s chairman Claudio Descalzi affirmed - is to work on all levels to demonstrate, with data at hand, not onlyOMCNEWS what our industry 2013 can do in terms DAY 3 of benefiting from our natural resources, but also how this can be done while respecting the safety of people and of the Speakers at Assomineraria seminar environment”. “The political scenario is changing and probably will become more difficult”, Focus the head of the energy department of Mediterranean game changer Page 3 the Economic Development Ministry, Leonardo Senni, commented. But he Assoil school in Val d’Agri Page 10 added that “I want to send out an optimistic Manenti (Techint) signal. In the course of consultations on on italian industry’s excellence in automation Page 14 the national energy strategy proposal, few DAY 1 DAY 2 OMCNEWS OMCNEWS 11th Offshore Mediterranean Conference • Ravenna, Italy • 20 March 2013 11th Offshore Mediterranean Conference • Ravenna, Italy • 21 March 2013

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Mediterranean game changer companies was a subject also taken up by DAY 3 Egypt’s oil minister, Abdulkareem Luaibi, As producing countries consume more, as well, above all in the perspective of offshore resources’ development becomes crucial increasing domestic demand of producing countries. What is especially needed is On a regional level, its offshore drilling activities will resume in 2013, a vigorous dialogue between producers OMCNEWS hydrocarbon resources may Noc consultant Abdulgasem Zwary and consumers and “this conference is make the Mediterranean Sea a announced. As for Algeria, Ahmed perfect for that purpose”. In short, more 11th Offshore Mediterranean Conference • Ravenna, Italy • 22 March 2013 Fo cus game changer. This is the point of Mecheraoui, Oil Ministry consultant, and energy will be needed to accompany view expressed on Wednesday Malla M. Said of Sonatrach underlined the development of society: “we are by Edison Ceo Bruno Lescoeur that the development plan of the counting on our strategic partners in the during the OMC2013’s plenary national company is giving priority to multi-nationals”. This led the minister to session. The Mediterranean basin has great intensification of offshore research close with an invitation to those attending resources, many of them still unexplored, and evaluation of the potential of OMC2013 to come to Egypt (Alexandria while others have been explored but are unconventional resources. Mecheraoui or Cairo) for OMC2014. As Lescoeur not yet being developed, above all in the called on international oil companies said, the “pure producer vs. pure offshore. to collaborate in this effort with their consumer” paradigm is no longer valid. This is especially the case of Libya and know-how and technology. Cooperation The countries of the Mediterranean’s Algeria. In Libya, offshore exploration between producing countries and the northern shore will see their domestic demand increase 2.4 times by 2030 from OMCNEWS 2013 DAY 1 the 1990 level, in the face of production that will increase by barely a fifth. In the countries of the southern shore - from Turkey to Algeria - demand for energy will increase eightfold and production sixfold. For this reason too, if it is true OMCNEWS 2013 DAY 2 that the resources of the Mediterranean will not have a decisive role on the global equilibrium, on the regional level it is certainly possible to speak of the sea as Libya’s offshore resources a game changer. G.M. OMCNEWS 2013 DAY 3

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DAY 3 Resident Autonomous Underwater Vehicle Systems A Review of Drivers, Applications, and Integration Options for OMCNEWS the Subsea Oil and Gas Market The subsea industry is currently faced with great class of vehicles not requiring 11th Offshore Mediterranean Conference • Ravenna, Italy • 22 March 2013 prospects as well as great challenges. Large surface vessels. However, Ro b o tics parts of the remaining oil and gas reserves are these vehicles are typically not located offshore and recent decades of technology designed with the operational development has resulted in a drive towards capabilities needed for Marcus Furuholmen, subsea solutions. However, several constraints performing service tasks, Aker Subsea challenge the subsea industry: large parts of remaining nor for the reliability required reserves are located deeper, more remotely, and in harsher for extended submergence over months. A new class of and more sensitive areas. Recent accidents in the field Resident Autonomous Underwater Vehicle Systems is have increased the attention towards the need of even needed in the industry. We believe these systems will form higher standards of equipment and operating procedures. a key part of the future tool box needed in order to improve Constraints on human resources are also facing the current operations as well as to access future uncharted industry. One of the key solutions for unlockingDAY 1 the current areas in both safer and more efficient ways. This paper OMCNEWS 2013 growth potential and the remaining oil and gas reserves will build on information obtained from various feasibility is the development of new technology. Among the key studies in this field. First, we will explain the main drivers areas in strong need of innovation is the subsea service for this technology development. Second, we will review the and maintenance sector. Traditionally, subsea services main application areas as well as the specific requirements such as intervention, inspection, maintenance, and repair, for each application area. Finally, we will explain how such OMCNEWS 2013 are performed by divers or RemotelyDAY Operated 2 Vehicles technology can be integrated, both on brown fields and (ROVs) tethered to, and operated from, a surface vessel. green field developments. Such surface vessels are associated with high day rates and the availability is typically constrained by both weather Marcus Furuholmen, Alfred Hanssen, Kristin Hatlen, Richard Carter conditions and access to equipment and personnel. (Aker Solutions), Jan Siesjo (Saab Seaeye) Autonomous Underwater Vehicles (AUVs) are another OMCNEWS 2013 DAY 3

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DAY 3 THE CLEAN-SEA PROJECT Towards automatic, continuous and long-term asset integrity and environmental monitoring in offshore OMCNEWS scenarios 11th Offshore Mediterranean Conference • Ravenna, Italy • 22 March 2013

Ro b o tics Presently, environmental monitoring and inspection tasks around oil & gas infrastructures are based on periodic surveys (typically on a yearly basis) involving use of supply vessels and underwater equipment (like water/sediment samplers and ROVs) operated by dedicated personnel. When moving from traditional (for example conventional platforms in shallow water) to new and more challenging development scenarios (for example subsea production systems in remote, hostile and environmentally sensitive areas), the conventional methods may not be sufficient OMCNEWS 2013 to ensure a safe and sustainable presenceDAY 1 at sea. At the same time, it is widely recognised that underwater technology offers new and interesting opportunities for Photo courtesy SAAB Underwater the development of advanced solutions able to ensure continuous, long-term, automatic execution of monitoring the field development: prior to any activity taking place and inspection tasks at sea. In particular,DAY 2 Autonomous (environmental baseline monitoring); during exploration OMCNEWS 2013 Underwater Vehicles (AUV) are an emerging technology in and production activities, in proximity of offshore many fields of marine activity (military, scientific, industrial), infrastructures (platforms, FPSO, SPS, pipelines etc.) offering a significant potential in cost savings and extension (environmental impact monitoring); in the event of of the operational capabilities associated to the solutions significant incidents, to record the immediate effects of presently adopted in offshore operations. the incident and environmental recovery (post-incident OMCNEWS 2013 CLEAN SEA (Continuous Long-term DAYEnvironmental 3 and monitoring); Asset iNtegrity monitoring at SEA) is the concept of an • general oil spill detection tasks (pre-planned paths, along innovative robotic system making possible the execution of flowlines, around SPS templates and manifolds, verification asset integrity and environmental monitoring tasks around oil of occurrence of situations for which mobilization of a ROV & gas installations by means of a commercial Autonomous vessel is required); Underwater Vehicle (AUV) properly upgraded with key • detection and localization of hydrocarbon leakages from enabling technologies. flowlines; The concept is based on the original and distinctive idea • visual inspection tasks of SPS structures, manifolds and of an autonomous mobile robot capable to support a associated equipment. custom-designed mission payload, arranged in modular This paper provides a comprehensive technical overview of and interchangeable pods. To implement and demonstrate the concept. Results of the first phase of demonstration tests CLEAN SEA concept, Eni e&p division and its subsidiary are also presented and discussed. Eni Norge have launched a R&D project in cooperation with tecnomare. Reference missions addressed by the F. Gasparoni, M. Favaretto, T. Grasso (Tecnomare SpA), project include: E. Bjornbom (Eni Norge), • Environmental monitoring tasks, during all phases of P. Broccia, M. Buffagni (Eni e&p division)

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DAY 3 Completion and stimulation in Bakken Discovering trends of well performance

Advances in the technology of drilling, completion OMCNEWS and multi-stage fracturing of horizontal wellbore have contributed to vast increases in oil and gas 11th Offshore Mediterranean Conference • Ravenna, Italy • 22 March 2013 production in unconventional reservoirs. Oil and gas production from ultra-low-permeability reservoirs U nc o n v enti nal is economically feasible and accomplished using these technologies, which substantially increase reservoir contact with horizontal wellbores. However, as the length of horizontal wellbore and the number of fracturing stages increase, so do the challenges in drilling, completion and multi-stage fracturing treatment operations. Collecting data and evaluating ongoing planning, drilling, completion, stimulation treatment, and production data enable operators, service companies and all parties involved to gain valuable insights for improvement of each DAY 1 OMCNEWS 2013 category involved in the operations. In this paper, the authors have analyzed drilling and well data, completion, fracturing treatments and production data from a large number of wells in two fields producing from the Bakken Shale in the Williston Basin of North Dakota. The results reveal trends OMCNEWS 2013 of well performance against various wellDAY data, 2 completion and fracturing treatment parameters. The evaluation and insight from this study can be used for optimization and is applicable for future drilling plans, completion plans, and multi-stage fracturing treatment designs in the Bakken shale and in other analogous reservoirs. DAY 3 OMCNEWS 2013 Andy Sookprasong, William D. Holcomb, Justyna S. Ferraro, Chunlou li, Baker Huges

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Viscosity-compensated flowmeter improves existing OMCNEWS leak detection system

11th Offshore Mediterranean Conference • Ravenna, Italy • 22 March 2013 C O MPANIES Shortly after the completion of an African pipeline flowmeters at pump stations two and three. Overall, this would BY project, its operator decided to upgrade the system by allow for better monitoring of the entire pipeline but also supply the installing additional flow monitoring equipment at two existing leak detection system with valuable flow information. In pump stations. The intent was to improve the efficiency the project description, the pipeline operator specified the need for of the existing leak detection system by supplementing it with highly accurate and repeatable flow instruments with a better than very accurate and repeatable flow readings. The solution was to 0.5% accuracy. install an SITRANS FUH1010 viscosity and densitycompensated flowmeter from Siemens, providing standard volume and mass The solution measurement for the leak detection system. The pipeline project, Siemens won the project with the installation of the SITRANS which involved several African countries, included crude oil FUH1010 viscosity-compensated four beam flowmeters at pump OMCNEWS 2013 extraction and production as well as transportationDAY 1 from central stations two and three. The customer viewed this solution as Africa to the Atlantic coast through a new pipeline. The project, ideal for several reasons: Since fluctuating temperature and which was expected to produce 225,000 barrels of oil per day pressure conditions have an effect on a liquid’s viscosity, the during peak production, was managed by a joint venture between Reynolds number that the flowmeter calculates to compute the several international oil companies. flow profile compensation, will also be affected. The result is a negative impact on the flow measurement accuracy as well OMCNEWS 2013 Background DAY 2 as the pipeline balance. The SITRANS FUH1010 works around The pipeline project was divided into two major phases. Phase this by automatically compensating for such changes. The input one aimed at developing a field system, which included drilling of options provided by the SITRANS FUH1010 were an additional some 300 oil wells and erection of associated facilities. Phase two positive feature. Since pump stations two and three were already entailed the construction of a 670-mile (1078 km.) 30” (DN 760) equipped with pressure and temperature transmitters, these were OMCNEWS 2013 pipeline from the oil fields to the loading facilitiesDAY 3 at the Atlantic connected to the flowmeter via the 4-20mA current inputs. This coast. Three pumping stations, auxiliary facilities and infrastructure enabled automatic compensation for viscosity changes caused improvements complete the system. Additional facilities comprise by fluctuating temperature and pressure conditions that have an an onshore pressure-reducing station connecting the onshore impact on accuracy. pipeline with a subsea pipeline, in which the crude oil is transported The SITRANS FUH1010 can also calculate the coefficient of to a Floating Storage and Offloading vessel (FSO) located seven thermal expansion of the pipe. With a length of more than 670 miles (eleven km) offshore. From here the crude oil is loaded miles (1078 km) the pipeline runs through regions with varying onto export tankers. In order to protect the pipeline from damage climates and temperatures. These temperature differences make or sabotage, the entire pipeline is buried below ground. Extra the pipeline expand and extract, affecting the inner diameter of thick pipe walls have been installed at river and road crossing the pipe. Knowing the inner diameter, is a very important factor in locations and concrete coating has been used in wetlands and at clamp-on ultrasonic flow measurement so if this value is off by only river crossings for additional safety. Along the pipeline, 48 block a fraction of an inch compared to what has been entered into the valve stations and three pump stations are installed to control the flowmeter, the accuracy will be greatly affected. With the SITRANS oil flow. The valves are used to isolate parts of the pipeline when FUH1010, however, this can be easily eliminated. As with any maintenance is needed or in case of a rupture or a leak. 16 of these clamp-on flowmeter from Siemens, it is not necessary to cut the block valves are connected to the pipeline’s telecommunication pipe or shut down operations to install the SITRANS FUH1010; and Supervisory Control And Data Acquisition (SCADA) monitoring the transducers are installed on the outside of the pipe, eliminating system, allowing them to be remotely controlled. This enables pressure drops, minimizing maintenance expenses and preventing instant shut down of a particular pipeline section or sections in case deposits from forming. The latter is a particularly important benefit of anemergency. Rather than letting the pumps and generators at in crude oil pipelines where paraffin wax build-up is very common. pump stations number two and three run on electricity, a portion of To remove this build-up, periodical pigging is required. Since crude oil is extracted from the pipeline, refined on-site and used clamp-on transducers are mounted on the outside of the pipe the as fuel. Leftover crude oil and naphtha residue from the refining pig can easily clean the entire pipe. In addition, there is no clogging process are returned to the pipeline immediately downstream of of the sensors, which could result in meter malfunction as is the the pump stations. case in wetted sensor systems. Although the upgrade project entailed a challenging installation, The problem the complete package of compensatory features of the SITRANS To monitor the entire operation, the operator installed flowmeters FUH1010 combined with the added valve and pump monitoring on crucial locations along the pipeline. These included the inlet abilities, offered a solution that both enhanced the overall station, pump station one, the pressure-reducing station, the operation of the pipeline as well as the existing leak detection inlet manifold of the FSO and the crude oil take-off lines. As part system. of a pipeline upgrade project, it was decided to install additional Sponsored by Siemens 9 DAY 1 DAY 2 OMCNEWS OMCNEWS 11th Offshore Mediterranean Conference • Ravenna, Italy • 20 March 2013 11th Offshore Mediterranean Conference • Ravenna, Italy • 21 March 2013

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Assoil School in Val d’Agri DAY 3 An example of local technical promotion

It is education that makes possible the best, the operate in filling orders. Various firms from other regions have most appropriate and truest way of looking at the oil already opened offices in our area precisely for this reason. As a industry. Challenging the usual prejudices that paint point of reference for training companies’ human resources in Val

OMCNEWS So cial the upstream companies as anchored exclusively d’Agri and its area, the school has become a meeting place for 11th Offshore Mediterranean Conference • Ravenna, Italy • 22 March 2013 to the logic of profit at any cost, Assomineraria has entrepreneurs who come together to participate in new tenders launched an initiative that is having a great success or new markets (like Mozambique), and thus broaden their field resp o nsibility from many points of view: from that of employment, of action. In relation to local communities, the school presents an of culture, and of social and economic realities. This opening to young people, also through scholarships promoted is Assoil, a school for technical training headquartered by municipalities, the province and the region, which benefit from in Viggiano, in Basilicata, which has become an excellent the royalties of the oil activity. This is a virtuous circle, but even bridge toward the work world, demonstrating how a good idea though the local press sees the school as a good project, the oil starting with the real needs of a group of small and mid-sized companies are still suffering from the usual prejudices. Assoil’s enterprises can reach the target of public opinion locally and goal is also that of promoting the understanding that the activity elsewhere, obtaining the applause of institutions and bringing of upstream businesses is positive for the territory: they attract the local population closer to oil activities that too often are satellite industries and offer work to local youth. The school thus felt as alien. In addition to this success, the training school is becomes a point where giant multi-nationals and local people DAY 1 OMCNEWS 2013 very useful to the big upstream operators, who know whom to meet - it serves as a bridge. turn to for bringing their own employees up to date in training. Moreover, in new markets like those not yet developed in Following the path begun in Viggiano, other schools are about Mozambique, in East Africa and elsewhere, the idea of to be set up in Mozambique and other African countries, where accompanying the presence of Italian companies with a there is a strong need to train qualified labor to be employed by technical and professional school (not the schools of superior OMCNEWS 2013 the growing oil industry. DAY 2 studies imitating of the irreplaceable ones of the UK and Assoil School, Advanced Skills for Service in Oil and Gas the USA), as a place of encounter and exchange with local Industry School, is an association created in January 2011 by businesses, may be the key for establishing a constructive the Settore Beni e Servizi of Assomineraria and 16 associated relation with the often quite isolated local communities where firms: Bonatti, C.Engineering, Cosmi, Criscuolo Eco-Petrol upstream activities are started up. Service, EDAM Soluzioni Ambientali, Garramone & figli, The center is widening its range to offer high level specialist DAY 3 OMCNEWS 2013 Mediterranea Ingegneria, Pergemine, Proger, Riccoboni, training, also in Prevention and Safety, to Italians and foreigners Rosetti Marino, Semataf, Siad - Società Italiana Acetilene e interested in advanced industrial technology. Derivati, Sudelettra, Tesal. The association, led by Sergio Polito, Assoil School works also as a consulting center to investigate has a didactic center directed by Ida Leone, which supplies possible training needs for all sorts of production operations, training courses for upstream satellite services, with the goal small, medium, and big. Consultancy begins with an analysis of transferring know-how to both employed and unemployed of the company’s needs and skills, as well as the individual people. The center is a permanent structure at the disposal inclination of each collaborator, so as to find the best candidate of associate businesses, which can use the center to train or for training. Where the workforce of the company is insufficient, re-qualify personnel and use its resources for development of Assoil organizes specific training courses for outside personnel services on the local, national, or international market. found in the labor market. That way, the close synergy with the The school’s original goal is above all technical preparation of territory, local authorities, the business network, schools and the human resources of the 16 founding firms and those of other universities, makes it possible for the Assoil School consultants non-associated firms as well (for instance, eni, and soon also to perceive the real needs of the firms, facilitating a better Total). But the school also serves, in the intention of the founders connection between demand for and supply of work. themselves, to encourage companies from other regions to The natural outcome of Assoil School’s consultants’ work is the come set up in Val d’Agri, where they can prepare personnel to creation of tailor-made training courses to meet companies’

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needs perfectly. The deep understanding of the oil sector and Courses in April: its related businesses, together with a close cooperation with Monday 8 Wastes and waste-tracking (8 hours + 8 hours) members, partners, local, national, and international operators, Thursday 11 Updating high risk anti-fire methods (8 hours) makes it possible for the school to satisfy the companies’ Monday 29 Welding Inspector (40 hours) requirements. A.P.

Founders Assomineraria, The Italian Oil and Mining Industry Association, was founded in 1917 and is an integral part of Confindustria. Its purpose is to represent the interests of its associated firms (123), which operate in various ways in Italy in the search for and production of mineral resources. Bonatti is an international general contractor for engineering, construction, procurement and operation & maintenance for the oil & gas and power business. C.Engineering (CEng), an affiliate of the D’Appolonia SpA group since 2004, and earlier of the Eni group, is a company specialized in the processes of industrial organization and technical assistance principally in the oil & gas sector. Cosmi is a leading firm affiliated with the Cosmi group. It has been present in both the national and international markets since 1974 in the planning, engineering, and procurement sectors for turnkey plants. Criscuolo Eco-Petrol Service (CEPS), headquartered in Viggiano (Potenza), since 1997 operates in the environmental services and integrated logistics sectors. EDAM Soluzioni Ambientali operates in the environmental and industrial field with 24-hour a day emergency service teams. Garramone Michele & Figli is a service company which has been operating for over thirty years in the environmental field, consolidating its experience in the extraction business. Mediterranea Ingegneria (Med.Ing.), a new entrepreneurial company in Basilicata, operates in the civil engineering and industrial sector by furnishing support services mainly to Oil & Gas enterprises. Pergemine Complete drilling services (rigs, equipment, personnel and technical support), as drilling contractor and as general contractor for the oil industry (exploration and production), both for shallow wells and for ultra-deep ones. Proger Born in 1951 as a professional studio, Proger became a company in 1983 and is now a leader in integrated engineering services and in project management. Riccoboni offers Global Service, environmental recovery, industrial waste treatment services with authorized mobile plants and management of its own and others’ waste treatment plants. Rosetti Marino is the parent of an integrated group of companies able to offer services to the most important oil companies throughout the world. Semataf supplies businesses and public bodies with specialized environmental services: collection, treatment, recycling and transport of dangerous and non- dangerous special wastes. Siad Founded in Bergamo in 1927, SIAD is an international group which produces and sells the whole range of industrial, special, and medicinal gases and related services. Sudelettra, born in 1974, is specialized in the planning and installation of electric systems, of instrumentation and automation for chemical, petrochemical, pharmaceutical and manufacturing plants. Tesal is a new company whose prevalent activity is the preparation and supply of chemical products and management of warehouses for third parties.

Horizontal drilling in Wadden Sea A comprehensive stakeholder engagement process focusing on the common goal of ecosystem improvements in the end lead to a lifting of the moratorium. The Wadden Sea area is a unique wetlands area of great ecological moratorium. As a result gas is now produced importance. The area is also very popular with tourists. It has from under the Waddensea area from 3 new Margriet Kuijper, recently (2009) been declared a World Heritage Site by UNESCO. locations on the main land bordering the Wadden Shell Gas production in the Wadden Sea area has always been a Sea (using horizontal drilling techniques). Strict sensitive and political issue. Since the mid eighties the NAM (Shell monitoring programmes are regularly reviewed with a wide group operated 50/50 joint venture with ExxonMobil) has operated the of stakeholders. And clear acceptability criteria have been defined, Ameland field from a location in the dunes on the Ameland island. which, if exceeded can lead to reduced gas production (‘hand on Further development plans however met with fierce resistance the tap’ principle). from environmental groups and from local residents. The national We will share the main lessons learned from the initial phase (when government even imposed a 10-year moratorium on further a moratorium was imposed) and from the later phase in which drilling and development of gas from this area. A comprehensive broad political support for the production of more Waddengas was stakeholder engagement process focussing on the common goal obtained. of ecosystem improvements in the end lead to a lifting of the Margriet Kuijper, SP/SD Shell Regional Manager Europe

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DAY 3 RasGas Pumps Up Production Doha, Qatar - Qatar’s natural gas - representing 10 percent of the world’s natural gas reserves - is located in a giant, offshore field, and needs to be super chilled as liquefied natural gas (LNG) for export. This super OMCNEWS chilling operation takes place onshore 130 km away in a 11th Offshore Mediterranean Conference • Ravenna, Italy • 22 March 2013 C O MPANIES gas processing plant called a “train”. RasGas, one of the world’s premier integrated LNG enterprises, has seven BY trains, including two of the world’s largest. RasGas needed a company to provide timely design in the existing system coupled with the number of control stations information in the engineering phase and a consistent also impacted the addition of new stations and applications. design throughout project development, despite the sheer size To achieve these goals, Invensys delivered the best-in-class of the project. In addition, all work was being handled from a technologies in control and safety systems, providing expertise combination of different engineering locations. in serial data communications (HART, Modbus, ProfiBus, OPC The clear choice was the products, services and solutions provided and High Speed Ethernet), in single system integration, providing by Invensys Operations Management. Invensys offers the most mission critical information and control for the operation of the holistic and cost-effective way to optimize operation performance LNG Plant. Because the offshore wellheads require real-time and overall profitability. Invensys helps improve the performance communication with the onshore operations, Invensys delivered OMCNEWS 2013 of key resources (people, equipment, energyDAY and 1 materials) in real the world’s longest safety system peer-to-peer network, which time - with dramatic, measurable results - using a collaborative and allows the onshore LNG system to shut-down the remote offshore open approach. wellheads from a distance of 130 km. One of the main reasons Invensys was selected was their The Energy to Succeed strong project execution capability with deep knowledge of LNG Invensys provided a robust and sustainable solution allowing applications and the existing installation at RasGas. Operating DAY 2 for analysis, measurements and improvements in LNG plant OMCNEWS 2013 in an ever changing environment, Invensys’ ability to handle late performance. Advance Alarm Package, Loop Performance and design information from package vendors helped minimize impact Instrument Asset Management were provided for Train 6 & 7. to the project schedule. Invensys brought unique attributes to the RasGas operation, Rigorous Factory Acceptance Testing (FAT) helped to integrate which ensured success at the lowest risk level and with the Foxboro I/A Distributed Control System, Triconex Critical and highest life cycle value. Invensys showcased extensive and long- OMCNEWS 2013 Safety Systems and other application systemsDAY 3 – all tested within term experience in Qatar, and a strong track record in design and an integrated environment. With its wealth of experience, Invensys implementation. The expansion and retrofit of RasGas’ LNG plant was able to identify critical tie-ins early in the project, which helped process automation systems incorporated both legacy and new to mitigate the risks associated with working in a live plant. systems into one integrated system. Bigger and Better As unanticipated situations arose, Invensys proved to be very RasGas’ huge investment into LNG places Qatar on the world- flexible and adaptable in handling late changes in design data map as a leading global natural gas producer. In 1999, the first without impacting project delivery dates. Control Systems were year of production, RasGas produced 6.6 million tons per annum engineered, installed and pre-commissioned to achieve record- (MTA) with its first 2 trains. As more trains came online, production breaking completion dates. increased to a level where industry experts estimate that soon These factors resulted in the delivery of the lowest risk control Qatar will supply 30% of the world’s LNG. With Trains 6 and 7 system and advanced application system, designed and online, each producing 7.8 MTA, these two projects represent a implemented by engineers who were technical experts and big step towards Qatar becoming the world’s largest supplier of understood the business context of RasGas’ market. LNG with expected total production of 77 MTA. By working with Invensys, RasGas is setting the pace for the LNG The Invensys Solution industry globally, supplying more efficient and more environmentally The existing control system had multiple operating platforms and friendly energy for export to the world. hardware versions. Invensys had to strike a delicate balance This article has been realized thanks to the collaboration between RasGas and between existing and new technology. System limits on data traffic Invensys Operations Management.

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Italian industry’s excellence in automation DAY 3 Interview with Marco Manenti of Techint

For the first time at OMC2013, this morning in the green room, the Associazione Nazionale Impiantistica Industriale is moderating a workshop on the challenges OMCNEWS upstream industry presents to the wide world of automation, ranging from plant safety to the improvement of production processes. Italy’s automation industry is 11th Offshore Mediterranean Conference • Ravenna, Italy • 22 March 2013 ANIMP - ISA a point of pride. In this interview, Marco Manenti of Techint, who will be conducting today’s workshop, tells us about the strong points and problems in this field.

What challenges are facing the automation industry in that other more mature serving oil & gas operations? productive processes have The automation industry must be the key factor in giving introduced, capitalizing on Marco Manenti, Techint end users the possibility, in complete security, to improve the experiences, especially the productive capacities of their plants while accelerating from an economic point of operations and reducing their costs. view, of cost control. Obviously without neglecting that which has always been Italy’s strong point: excellence in OMCNEWS 2013 The economic crisis is worsening. WDAYhat 1 is the condition production. of Italy’s plant design and equipment business? Are we suffering from the competition of foreign firms or What new prospects might open up if Europe said yes are we remaining leaders? to unconventional hydrocarbons? Without a doubt, the current market context is burdened The exploitation of unconventional resources could have by many uncertainties, as well as by ever more aggressive an important impact on Europe’s energy scenario and OMCNEWS 2013 competitors. But there are also someDAY opportunities 2 and consequently on the industrial system. Opening up to new challenges opening up, allowing firms to express their new technologies signifies creating new jobs and giving professionalism and enterprise, as well as their flexibility new stimuli to industry, including Italian industry, to look and innovation, elements which have always distinguished for solutions and products with ever higher technological the Italian plant design and equipment industry. I have content. OMCNEWS 2013 seen that our engineers have always beenDAY 3 appreciated and sought out in “our world”. Here again, our young people are From a technological point of view, what is really in the demonstrating their will to face and fight global competition, vanguard now? to continue the tradition of excellence. First of all, strength lies in those persons who manage to offer a state-of-the-art product. For this reason, we can say Is it possible to improve upstream production with that the Italian automation industry, rich in technologically alarm systems? evolved and up-to-date personnel, is in the vanguard. Absolutely yes. The experiences of EPC Contractors as well as of suppliers of supervisory and monitoring systems offer This is the first time that Animp-Isa coordinates an OMC evidence that these systems help the end user optimize session. Do you think you will repeat the experience in production processes as well as maintenance phases. the future? Absolutely yes. In addition to being positive, the experience What are the requirements of efficiency and what can has been useful for getting people acquainted with us, be done to satisfy them? but above all for sharing ideas and problems with other Efficiency means improving performance at parity of realities. costs. We must apply to automation the improvements A.P.

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The crowded conference hall Eni Ceo, Paolo Scaroni

Undersecretary Claudio De Vincenti Iraq’s oil minister, and Egypt’s oil minister Ossama Kamal Abdulkareem Luaibi

Innocenzo Titone, OMC2013 chairman Gala dinner

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TODAY’S AGENDA Friday 22th March 9.00 exhibition area opens New Logging Techniques (Room B) 9.00 Workshop 11.05 • LWD Logs & Horizontal Wells in Complex Fractured mare x Med (Sala Verde) Reservoirs: A Challenging Task for Fluid Path Detection 9.00 Technical Sessions 11.30 • Field Trials of a New Array Pulsed Neutron Formation Gas hp-HT and E&P Challenges (Room B) Measurement in Complex Completions 9.00 • Near Balance Drilling: Successful Application 11.55 • Revamping the Potentiality of Thin Layered Reservoirs: in High Pressure Well a Multi-Lithological Facies Classification 9.25 • Successful Wireline Formation Testing 12.20 • Thin Layers Gas Reserves Discovery and Production and Full Reservoir Characterization in Real Time in Adriatic Through New Wireline Formation in High-Pressure High-Temperature Environments Testing Application 9.50 • Development and Application of Ultra-HTHP Alternate • Improved Laterolog Resistivity Measurements Provide Drilling Fluids Real Time True Formation Resistivity 10.15 • An Optimized Emulsified Acid System and Invasion Parameters for High-Temperature Applications Offshore Pipeline Integrity (Room C) field & Production Optimisation (Room C) 11.05 • Advanced Pipeline Monitoring Using 9.00 • Novel Fluid System for Efficient Downhole Placement Multipoint Acoustic Data of Water Swellable Polymers 11.30 • Case study of Challenging Inspection of Offshore Gas 9.25 • A New Chemical Technique for Sand Management. Pipeline in the Black Sea eni Experience in the Adriatic Fields 11.55 • Corrosion Inhibition Efficiency of Oleic Acid Derivatives 9.50 • Predictive Monitoring of Critical Rotating Equipment for Carbon Steel Pipelines in Petroleum in Val d’Agri Formation Water Saturated With CO2 10.15 • Integrated Production Optimization through Model-Based 12.20 • Production Losses due to Flow Assurance Issues: Decision Support and Advanced Optimization Techniques Remediation Cleaning and Problem Prevention technologies For The Future 2 (Room D) Alternate • Assessment of Bacterial Corrosion 9.00 • Towards Automatic, Continuous and Long-Term Asset at the Gas Processing Plants Integrity and Environmental Monitoring in Offshore safety Enhancement for Facilities Scenarios: Clean-Sea Project and Materials (Room D) 9.25 • Resident Autonomous Underwater Vehicle Systems - A 11.05 • Testing Leak Detection System on Multi-product Review of Drivers, Applications, and Integration Pipeline Enhances Understanding of System Sensitivity Options for the Subsea Oil and Gas Market and Performance 9.50 • Structural Monitoring of Offshore Platforms by 3D 11.30 • A Real Time Software Tool for a Safe and Cost Effective Subsea Laser Profilers Offshore Transportation 10.15 • Benefits of Real-time LWD Sonic Semblance Images - Case 11.55 • Offshore Helidecks Assessment Project Studies from the North Sea and Offshore China 12.20 • Assessing the Safety Performance of Fireproofing Alternate • The Condition Monitoring System for Optimal Materials for Equipment Protection Maintenance-Possible Application on Offshore Vessels Alternate • Energy Efficiency to Support Production 10.40 coffee Break offered by WEATHERFORD 13.15 best Papers Award Lunch, guests of Adriatic LNG 11.05 Technical Sessions 15.00 exhibition closes

Side Events

9.00 - 13.00 Galleria (1st floor, Hall 2) SPE Student Contest - Student Arena 9.00 - 10.40 Room A Special Session ‘Social Responsibility in Frontier and Mature Areas’

9.00 - 13.00 Galleria (1st floor, Hall 6) B2B meetings organised by

OMCNEWS 2013 Edizione speciale della / Special edition of STAFFETTA QUOTIDIANA - 22 marzo 2013 Petrolio gas elettricità e altre fonti di energia - Oil gas and power in Italy Direttore responsabile / Editor in chief Pubblicità e marketing / Advertising & marketing Redazione e produzione / Editing & production Goffredo Galeazzi Paolo Angelini RIP Srl Direttore emerito / Director emeritus Progetto grafico / Graphic layout Roma - 00145 - Largo Luigi Antonelli, 30 Giorgio Carlevaro Studio Giano di Fabrizio Pensa - Roma e-mail: [email protected] Direttore editoriale / Editorial director Editore / Editor www.staffettaonline.com Giovanni G. Borromeo RIVISTA ITALIANA PETROLIO Srl Reg. Trib. Roma n. 4304 del 7/12/54 16