WORLD PIPELINES

Volume 13 Number 04 - April 2013

APRIL 2013

www.energyglobal.com
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ON THE GO.
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24

58

94

C ntents

109

WORLD PIPELINES | VOLUME 13 | NUMBER 04 | APRIL 2013

03 Editor's comment

05 Pipeline news

Gas storage is not the whole picture.

Keystone XL, Gazprom, TAPI, Sino-Myanmar pipeline, and more.

REGIONAL REVIEW

OFFSHORE WELDING

12 Bouncing back

70 A fruitful relationship

The Gulf of Mexico is successfully fighting its way back against the tide.
Gordon Cope reports.

Alan Robinson, Managing Director, Arc Energy Resources, UK.

75 Confidence in consistency
Jeff Nelson, Bug-O Systems, USA.

OFFSHORE PIPELAYING
79 Enhancing field development
Dr. Stuart N Smith, Vice President Technology and Asset Development, and
John Mair, Technology Development Director, Subsea 7.

The Gulf of Mexico is

successfully fighting its
way back against the tide.
Gordon Cope reports.

he Gulf of Mexico is one of

the worlds most bountiful
and prolific basins, with
11.5 trillion ft3 of proven gas
reserves and 4.1 billion bbls of proven crude
reserves. In 2011, production amounted to
4.6 billon ft3/d and 1.4 million bpd. New
fields are coming into production, and new
discoveries are being made. Land sales have
resumed, and more are planned.
But the industry also faces strong
currents, including a far stricter regulatory
environment, extreme weather events and
uncertainty over the very significant risks
involved in exploring and producing in one
of the most challenging environments. How
it prospers in the coming years depends very
much on a number of emerging factors.

ROVs
83 ROVs: a must in deeper seas
Chris Charman, Chief Executive, International Marine Contractors Association
(IMCA), UK.

Deepwater production
and discoveries
Deepwater development is gaining pace.
As part of its US$ 34 billion exploration
and development budget for 2013, Chevron

HOT TAPPING AND ISOLATION

12

13

87 Working without interrupting the flow

Angus Bowie, Technical Director, STATS Group, UK.

OFFSHORE DESIGN
19 Ensuring optimum efficiency underneath the
waves
Matthew Guite, Director of Subsea, Pipelines and Risers, Theon Limited,
UK.

OFFSHORE TECHNOLOGY REVIEW

UNDERWATER INSPECTION
94 Listening out for leaks
Luigi Barbagelata, Managing Director, Co.L.Mar. Srl, Italy.

COATINGS FOR OFFSHORE APPLICATION

103 Putting coatings to the test

24 World Pipelines' Offshore Technology Review

John Carter, Strategic Account Director, Exova Coatings, UK.

Featuring Bhler Welding Group, Boskalis Offshore, ClampOn,

Dyna-Torque Technologies, Inc., Halliburton Pipeline and Process Services,
INTECSEA, Inc., Jan De Nul Group, Land & Marine, Nexans,
Online Electronics Group, Serimax (Vallourec Group), Stopaq, and
Trelleborg Offshore.

POWER GENERATION

COVER STORY

109 Footprint facts

Rainer Kurz, Solar Turbines Incorporated, USA, and Klaus Brun, Southwest
Research Institute, USA.

58 Offshore coatings: reducing risk

Gregg Johnson, Bredero Shaw, USA.

KEYNOTE ARTICLE

65 Continuously improving standards

ON THIS MONTH'S COVER

Reader enquiries [www.energyglobal.com]

Bredero Shaw has introduced Complete Coating Assurance, a new model that lowers the risks
involved in todays complex offshore projects. A unique process combining products, expertise, global
infrastructure and services from upfront coating design to installation. This ensures line pipe and eld
joint coating are fully integrated and helps reduce risk. To learn more, visit www.brederoshaw.com.

ISSN 1472-7390

Ali Sisan, Head of Section; Pipelines, Subsea, Wave & Tidal, DNV, UK.

Volume 13 Number 04 - April 2013

Member of ABC Audit Bureau of Circulations

Copyright Palladian Publications Ltd 2013. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or
transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the
copyright owner. All views expressed in this journal are those of the respective contributors and are not necessarily the opinions of the
publisher, neither do the publishers endorse any of the claims made in the articles or the advertisements. Printed in the UK.

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C mment
I

ts the time of year when many people and

businesses are required to file their taxes
and work out whether they have stored
away enough funds to foot the bill. A
similar storage calculation happened in the UK
a week or so ago, when, at the end of what
has been a long Winter and in the midst of a
very cold snap, it was announced that UK gas
storage was down to two days worth of
supplies, or 10% of total capacity. Cue much
panic, from all parties. Of course, the UK is fed
EDITOR
by several different lines of supply, storage
Elizabeth Morant
being just one part of the complex oil and gas
elizabeth.morant@worldpipelines.com
delivery system that
keeps the island
MANAGING EDITOR
James Little
powered up. As the
james.little@worldpipelines.com
Department of
Energy and Climate
ASSISTANT EDITOR
Cecilia Rehn
Change (DECC) was
cecilia.rehn@worldpipelines.com
keen to point out in
a statement: gas
ADVERTISEMENT DIRECTOR
Rod Hardy
storage would never
rod.hardy@worldpipelines.com
be the sole source of
gas meeting our
ADVERTISEMENT MANAGER
Chris Lethbridge
needs, so it is
chris.lethbridge@worldpipelines.com
misleading to talk
purely about how
SALES EXECUTIVE
Chris Gardner
many days supply is
chris.gardner@worldpipelines.com
in storage.
PRODUCTION
Whilst two days
Stephen North
worth of stored gas
stephen.north@worldpipelines.com
is pretty low,
CIRCULATION MANAGER
certainly when
victoria.mcconnell@palladian-publications.com compared to other
European nations,
SUBSCRIPTIONS
laura.cowell@palladian-publications.com
the UK is fed by a
REPRINTS/MARKETING ASSISTANT range of sources,
catherine.gower@palladian-publications.com including the
North Sea, several pipelines from Norway and
WEBSITE
the EU, and shipments of LNG. It was, in fact,
Callum OReilly
callum.oreilly@energyglobal.com
a pipeline shutdown that precipitated the
panic: the Interconnector UK (from Belgium to
PUBLISHER
the UK) was unexpectedly closed, causing a
Nigel Hardy
large spike in the price of wholesale gas,
which subsequently caused everyone to ask
Palladian Publications Ltd,
15 South Street, Farnham, Surrey,
questions about storage, and react in shock
GU9 7QU, ENGLAND
when the low supplies were revealed.
Tel: +44 (0) 1252 718 999
The temporary pipeline disruption, now
Fax: +44 (0) 1252 718 992
Website: www.energyglobal.com
back on line, happened because of a water
Email: enquiries@energyglobal.com
pump failure at the receiving terminal for the
Annual subscription 60 UK including postage/75/e110
Interconnector. A connection to a pump on
overseas (postage airmail)/US$110 USA/Canada
(postage airmail). Special two year discounted rate:
the hot water system that heats the gas from
96 UK including postage/120/e176 overseas (postage
airmail)/US$176 USA/Canada (postage airmail). Claims
the pipeline before it enters the UK network
for non receipt of issues must be made within three
failed. Gas flow to the Bacton gas terminal
months of publication of the issue or they will not
be honoured without charge.
was suspended while engineers attended to
Applicable only to USA & Canada:
the problem. Flow was returned to full
World Pipelines (ISSN No: 1472 7390, USPS: 020-988)
is published monthly by Palladian Publications
capacity to the terminal in Norfolk, England,
Ltd GBR and distributed in the USA by SPP, 17B S
Middlesex Ave, Monroe NJ 08831.
after a shutdown of eight hours.
Periodicals postage paid at New Brunswick, NJ.
In total, some 30% of Britains gas flows
Postmaster: send address changes to Palladian

GAS STORAGE IS NOT THE WHOLE PICTURE

into Bacton, so approximately 25 million m3

was lost. As a result, there was a mini energy
crisis and newspapers were filled with
in-depth accounts of the UKs energy mix.
Avid readers were comforted by the news that
three LNG tankers were due in from Qatar
imminently, along with another from Trinidad;
soothing news to those who were taking a
new interest in gas supplies. Prime Minister
David Cameron was keen to quash rumours
about supplies running out, stressing the
responsive nature of the UK gas market and
his confidence in the continued ability of the
system to provide
sufficient gas to homes
and businesses.
Of course the media
focus on the energy
supply blip was
intensified because of
much publicity
surrounding rising energy
prices for consumers in
Britain. It has been
announced that
household energy bills
are set to go up by as
much as 200 (US$ 300)
in the next year.
Consumer groups in
particular are keen to
suggest that increased gas
storage would cushion
against price hikes and
potential shortages. The
fact is, there has been no
actual shortage or
rationing of gas supply
has been keeping up with demand, despite
Britain working at 40% above its usual gas
capacity for this time of year.
The UK is dependent on imported gas
since North Sea reserves began to dwindle but
these supply routes are secure and
longstanding.
In addition to this energy mix, Centrica
(owner of British Gas) has just announced a
10 billion deal with Cheniere Energy Partners
to export LNG from the US to the UK.
Reports that some two million homes in
the UK are set to be heated by US shale
imports within five years should be balanced
against the fact that Centrica will probably
only import the LNG should gas prices in
the UK be able to offer similar or better
returns than if the gas goes to Asian markets.
So, in this sense, the US LNG will be a safety
net to an already diverse and functioning
gas supply system.

THE
INTERCONNECTOR
UK WAS
UNEXPECTEDLY
CLOSED, CAUSING
A LARGE SPIKE
IN THE PRICE OF
WHOLESALE GAS

Publications, 17B S Middlesex Ave, Monroe NJ 08831.

Energy Global

Bringing you the power of information

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W rld News

SIGN UP TO RSS NEWS FEEDS AT WWW.ENERGYGLOBAL.COM/SECTORS/PIPELINES

US Senate votes in favour of KXL

India solicits Russia for new oil pipeline project

The US Senate has supported construction

of the proposed Keystone XL pipeline that
is to carry oil from Canada to refineries on
the Gulf Coast.
The nonbinding measure was voted in
favour with 62-37. All 45 Republicans voted
yes, along with 17 Democrats.
The measure was sponsored by
North Dakota Republican Sen. John Hoeven
along with Montana Democrat
Sen. Max Baucus, with bipartisan support.
The Keystone pipeline is the perfect
opportunity to put Montanans, and folks
across the country, to work right now,
Mr. Baucus said in a statement after the
measure was introduced. American
workers cannot afford to wait any longer
for Keystone jobs, and there is absolutely
no excuse for further delay.
Naturally, the legislation would need to
be signed by the President whose powers it
would strip, and it is unclear whether it
could garner enough support to overcome
a potential veto by President Obama. It is,
however, an official recognition of the
frustration in Congress over the
administrations handling of the project.
Environmentalists and others have tried
to derail the project for four years, arguing
that extracting the oil from Alberta
oilsands would increase global warming.
President Obama has stalled it twice, and
Nebraska officials objected initially that the
route would jeopardise ecologically
sensitive lands.
Despite the fact that the Nebraska
route has been changed, a final answer is
not expected until Summer at the earliest,
after the State Department finalises its
environmental impact review.
A draft of that report, released last
month, seemed to come down on the side
of the pipeline proponents. The study
found that the pipeline will have little or
no impact on greenhouse gas emissions.
Crucially, the study said that the fuel will
eventually be developed by someone if
not by the US, then by China.
The Senate also rejected a
counter-amendment from California
Sen. Barbara Boxer that called for further
analysis before making a decision on the
pipeline. That bill was rejected by a 33-66
margin.

Russia will be invited by Indias Oil and Natural Gas Corporation (ONGC) to build an oil
pipeline through Afghanistan and Pakistan to India. Additionally, Indias largest gas company,
GAIL, has put forward that Russias future gas pipeline to China be extended to India. Experts
believe both projects, albeit fraught with political risk, would be economically feasible.
We are ready to discuss the details with the Russians. The project is economically
beneficial to both India and the Russian Federation. Moreover, it will benefit Afghanistan and
Pakistan, and when economic prosperity is on the table, differences tend to be forgotten,
Vice President of ONGC, M.K. Nair was quoted recently as saying.
There arent too many viable options for running an oil pipeline to India. The route
through China is mountainous. If it goes through the Himalayas, it will turn into a diamond
pipe. The route through Iran is more circuitous. If oil is shipped by tanker through the
Black Sea, it will still be several times further. Indias proposed alternative route from Russia
through Afghanistan and Pakistan is the shortest, Sergei Pikin, Director of the
Energy Development Fund, commented.
Indias potential is recognised in Asia as well as in Moscow. It is one of the fastest
growing regions in terms of energy consumption. The Indian market is potentially huge and
yet to be courted, Pikin added.
GAILs alternative project, a gas pipeline to India through China (instead of Afghanistan),
could be burdened by the two countries complex relationship involving border disputes and
suspicion. If a significant portion of the pipeline passes through the Middle Kingdom, there
is a risk that it could be used to exert pressure on India, says Dmitry Abzalov, a leading
expert at the Russian Center for Current Politics.
Both pipelines would come with political risks. However, it has been argued that an oil
pipeline would be more competitive in this region. Pipeline gas is unlikely to survive the
flood of LNG onto the global market. Qatar, the largest producer of LNG, is literally just a
few blocks away from India...Gas production and liquefaction are only set to grow in the
region...Gas competition here will be fiercer than oil, Pikin adds.

Russia and China ink gas supply deal

Russia and China have reached an agreement on increased pipeline gas supplies to China.
Late in March, Alexey Miller, Chairman of the Gazprom Management Committee and
Zhou Jiping, CNPC President signed a Memorandum of Understanding (MoU) on the
co-operation between the two companies within the project for pipeline gas supplies to
China via the eastern route. The MoU was inked in the presence of Vladimir Putin, President
of the Russian Federation and Xi Jinping, President the Peoples Republic of China.
The signed document is of long-term strategic nature, it determines the parameters of
Russian natural gas supplies to China via the eastern route and establishes the framework for
a 30 year contract for gas supplies from Russia to China, said Alexey Miller.
The agreement will turn China into Gazproms largest single-country customer from 2018.
This could potentially boost the companys annual revenue by US$ 12 billion, or 8%,
according to research firm Sanford C. Bernstein.
It is no secret that Gazproms need for a deal had become pressing. With investment
plans totalling US$ 50 billion in gas fields, pipelines and an LNG plant in eastern Russia, the
company needs a reliable long-term customer. European demand is weak, and the shale gas
revolution in the US has all but obliterated this market. However, neighbour China has
remained an attractive, natural buyer, eager to reduce its reliance on polluting coal.
A few hurdles remain, most importantly price. Gazprom has indicated it wants to adhere to
its principle of linking gas prices to oil, fearing its European customers will press for discounts if
China receives favourable terms. But according to the Oxford Institute for Energy Studies, China
seems set on paying US$ 250/1000 m3, close to the same price as for its Turkmen gas, which is
40% below the average price Europeans paid for Russian gas last year.

APRIL 2013 | World Pipelines

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FOR MORE NEWS VISIT WWW.ENERGYGLOBAL.COM/SECTORS/PIPELINES

W rld News

Australia

Pipelines for shale region needed

MoU signed for Indian pipelines

Jan De Nul Group has been awarded

an offshore project linked to a
pipeline stabilisation project.
Rockberms will be installed in water
depths of more than 150 m, pipeline
shore approaches trenched and the
seabed prepared for offshore
platforms. The new fall pipe vessel
Joseph Plateau will be mobilised
immediately upon delivery from the
shipyard in Bilbao in early April.

Williams and Boardwalk Pipeline Partners

have joined forces to develop a new major
natural gas pipeline, named the
Bluegrass Pipeline, which would connect
gas fields underneath Pennsylvania to
refineries on the Gulf Coast.
That will allow resources from the
Marcellus Shale to be refined by facilities
in Texas and Louisiana, and then exported
around the world. Once completed, the
pipeline will have an initial capacity of
200 000 bpd of natural gas liquids. This
could later be upgraded to 400 000 bpd,
primarily by the addition of liquids
pumping capacity.
This project is the latest in a series of
high profile pipeline development efforts
in and near the Marcellus Shale region, as
companies try to capitalise on the lacking
pipeline infrastructure situation by
building new networks that can handle the
rush of shale-derived oil and natural gas,
which the existing heavy crude pipelines
cannot easily carry out.
Whilst waiting for the pipeline
infrastructure to play catch-up, some
Marcellus and Utica Shale producers have
even had to slow down their operations; a
grave indication of the need for pipelines.
Along with new construction, the
Bluegrass Pipeline will also expand on an
existing network owned by Boardwalk.
The pipeline is expected come online by
or in H2, 2015.

Indias state industry department has asked

the Odisha Industrial Infrastructure
Development Corporation (Idco) to devise a
draft Memorandum of Understanding (MoU)
to be signed with the Indian Oil
Corporation Ltd (IOCL) to explore natural
gas solutions in Odisha, the 9th largest state
in the country.
The Petroleum and Natural Gas
Regulatory Board (PNGRB), the regulator for
the petroleum sector, has already identified
nine locations in the state such as
Bhubaneswar, Khurda, Rourkela, Bhadrak,
Jajpur, Anandpur, Baripada, Balasore and
Kamakhyanagar for development of the
city gas distribution network (CGD).
The CGD network would involve the
distribution of compressed natural gas and
LNG for domestic and industrial use
through pipelines.
According to sources, the draft MoU
would instruct both entities to explore
possible co-operation in the areas of total
energy solutions, especially natural gas.
The distribution is expected to be
carried out through two proposed pipelines
the 1100 km Kakinada-Haldia pipeline,
which will have a network of 434 km in
Odisha and the 1700 km Surat-Paradip
pipeline, which would stretch 400 km in
the state.
With a combined price tag of around
Rs. 17 000 crore, both pipelines are set to
be completed by 2014.

Mexico
The Mexican unit of Sempra Energy
has raised US$ 521 million via an
initial public offering on the Mexican
Stock Exchange. Sempra announced
plans last October to build a
US$ 1 billion natural gas pipeline for
Mexicos state-owned utility that will
connect pipelines in Arizona with
power plants in western Mexico.

Global
Schneider Electric has announced
that it has become a CDP gold
consultancy partner. The partnership
means it will provide global guidance
to companies looking to implement
sustainability initiatives that measure,
disclose and reduce carbon, water
and other environmental footprints.

Canada
Enbridge has agreed to build a
Cdn$ 200 million pipeline to connect
Athabasca Oils proposed
Hangingstone oilsands project to
Enbridges regional pipeline network
Stretching 50 km, the 16 in. pipeline
would initially carry 16 000 bpd of
heavy crude.
Following regulatory approval,
Enbridge hopes to start building the
pipeline in May.

Nigeria
Royal Dutch Shell PLCs Nigerian joint
venture will temporarily shut down
the 150 000 bpd Nembe Creek oil
pipeline, located in the eastern part
of the Niger Delta, for nine days to
clear illegal oil tappings, a local
manager has confirmed.

Pakistans President declares gas pipeline from Turkmenistan as key

Pakistani President Asif Ali Zardari has
explained that his country views a planned
natural gas pipeline from Turkmenistan as
key to address its energy concerns.
Celebrating the Persian New Year in
Turkmenistan, Zardari met with Turkmen
President Gurbanguly Berdimuhamedov.
According to reports, during the
meetings Zardari emphasised that bilateral
ties would be strengthened through trade.
In early 2012, Turkmen officials agreed to
sell natural gas to Asian customers through
the 1050 mile Turkmenistan-AfghanistanPakistan-India (TAPI) pipeline.

The pipeline project has seen support

from US officials, who prefer it to a natural
gas project backed by the Iran.
Earlier this year Zardari attended an
inauguration for the Iran-Pakistan (IP)
pipeline alongside Iranian President
Mahmoud Ahmadinejad. The US has argued
that support for the IP pipeline may violate
UN sanctions imposed on Iran.
The IP has been in consideration since
the 1990s, and the US government is
sceptical of its realisation. Iran says it is
helping Pakistan fund the pipelines
construction.

IN BRIEF

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World Pipelines | APRIL 2013

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FOR FURTHER INFORMATION ON EVENTS VISIT WWW.ENERGYGLOBAL.COM/EVENTS

6 - 9 May 2013
Offshore Technology Conference
Houston, USA
www.otcnet.org/2013

12 - 16 May 2013
59th Annual Pipeline Contractors
Association of Canada (PLCAC)
Convention
Montral, Canada
www.pipeline.ca

3 - 5 June 2013
ILTA Conference and Trade Show
Houston, USA
www.ilta.org/calendarofevents/
AOCTS/2013/2013info.htm

17 - 19 June 2013
Pipe Tech World Summit 2013
Barcelona, Spain
www.pipetechsummit.com

3 - 6 September 2013
Offshore Europe
Aberdeen, UK
www.offshore-europe.co.uk

W rld News

New standard for CO2 emissions

Capacity demand in North America

The World Steel Association (worldsteel)

has welcomed the publication of an
ISO standard that defines a calculation
method of CO2 emission intensity from
iron and steel production. The standard is
based on the CO2 data collection
methodology that has been used for the
past five years in the steel industry.
Launched in 2007, worldsteels CO2
data collection aims to provide steel
producers with a reliable benchmark for
their CO2 emissions. The number of
participating organisations has steadily
increased, currently representing more than
200 steel plants worldwide.
World crude steel production for the
63 countries reporting to worldsteel was
123 million t in February 2013, an increase of
1.2% compared to February 2012. The
monthly crude steel capacity utilisation
ratio is calculated based on crude steel
production and capacity information
available at worldsteel. The capacity
information is based on publicly-available
data, updated twice a year and verified
through worldsteels membership.
Worldsteel members represent around
85% of world steel production.

According to analysts, there will not be

enough pipeline capacity in the future in
North America even if the planned
Keystone XL pipeline gets built.
Research broker ITG has suggested that
oil production from Western Canada could
reach 5.7 million bpd by 2025, double that
of the current rate. The broker added that
the lack of pipeline capacity means around
600 000 bpd would need to move by rail
in the short-term. This is the scenario even
if new pipelines come on stream.
Pipeline capacity in Western Canada,
US Rockies and US Bakken production areas
will not keep pace with supply growth over
the next four years, requiring incremental
rail shipment volumes of 600 000 bpd
even if all planned pipeline projects, such
as Keystone XL and Northern Gateway,
proceed, the report reads.
The Northern Gateway and
Keystone XL pipelines both face similar
barriers from environmental groups
concerned about pipeline leaks.
Meanwhile, the American Association
of Railroads reports petroleum product
delivery by rail increased 58.3% for the
week ending 16th March year-on-year.

23 - 27 September 2013
47th IPLOCA Annual Convention
Washington, USA
www.iploca.com

24 - 26 September 2013
Rio Pipeline
Rio de Janeiro, Brazil
www.ibp.org.br

29 - 31 October 2013
OTC Brasil
Rio de Janeiro, Brazil
www.otcbrasil.org/2013

5 - 7 November 2013
O&G Pipes Global Conference
London, UK
www.ogpipes.com

New oil pipeline for Bahrain

Bahrain wants to secure more oil supplies
from its neighbour Saudi Arabia through a
US$ 350 million pipeline, a Bahraini energy
spokesman said.
Saudi Arabia has pumped oil to Bahrain
for more than 60 years through 38 miles of
pipeline. Naji Ahamed, a spokesman for the
Bahrain Petroleum Co., said analysis was
completed on a pipeline that could
transport as much as 450 000 bpd.
This means that oil exports from
Saudi Aramco to Bahrain would increase,
he was quoted as saying to regional media
at the 18th annual Middle East Oil and Gas
Conference.
Ahamed added that the
US$ 350 million pipeline would be
completed by 2015. The increased daily
capacity is compared with 260 000 bpd in
existing capacity.

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F OptaSense and Shell agree

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EVENTS DIARY

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C ntract News

Contract awarded for subsea pipelines in North Sea

Petrojet wins Omani gas pipeline contract

EMAS AMC, the subsea services division of EMAS, has been

awarded an engineering, procurement, construction and installation
(EPCI) contract, valued at approximately US$ 165 million, from
Det norske oljeselskap ASA (Det norske). The contract is for rigid
pipelay and related subsea work in the Ivar Aasen field in the
Norwegian North Sea.
Located 180 km offshore Stavanger, Norway, the Ivar Aasen field
contains approximately 150 million boe. The contracted scope of
work includes project management, detailed engineering and
procurement, construction and installation of three 10 km rigid
pipelines via reels, including spools, pipeline end terminations
(PLETs) and seabed intervention. Project management and
engineering work will commence immediately and will be managed
from EMAS AMCs office in Oslo. Offshore activities are scheduled
to commence in 2015, with completion in 2016.
Our involvement in this major project...demonstrates our
commitment to the North Sea and shows our strength as a fully
integrated service provider within the subsea, umbilicals, risers and
flowlines (SURF) segment. We are looking forward to working with
Det norske and its license partners from planning to execution, and
operating at the highest health, safety, environmental and quality
(HSEQ) standards, said Mr. Svein Haug, Regional Head for EMAS
AMC Europe and Africa.

Egypts Petrojet has won a contract to build a 157 km, 20 in. carbon
steel gas pipeline in the Al-Wusta governorate in central Oman, a
source close to the bidding process has revealed.
Project owner Petroleum Development Oman (PDO) awarded
the engineering, procurement and construction (EPC) contract,
worth an estimated US$ 45 million, for the pipeline at the Barik gas
field.
Petrojet is expected to complete the pipeline, which will run in
a loop from Barik to several block valve stations (BVS), in 2015.
Local group Galfar Engineering & Contracting and Indias
Larsen & Toubro were defeated in bidding for the deal in July 2012.
In similar news, Oman is preparing to award a contract for a gas
pipeline in the Dhofar governorate in the south of the country.
Oman Gas Company (OGC) received bids for the Salalah gas
loopline in last year and is expected to award the EPC contract in
Q2, 2013. The estimated US$ 40 million project covers the
construction of a 32 in., 85 km pipeline to meet increasing natural
gas demand in Dhofar.
Another gas pipeline in Al-Wusta is expected to be tendered
in May by Duqm Special Economic Zone. The project, which is
being managed by OGC, will link the Saih Nihayda gas field in the
centre of the sultanate with Duqm to provide fuel for industry at
the port.

Monitoring technology for the Sino-Myanmar pipeline

JV announced for flexible pipe manufacturing

Schneider Electric has been selected by China Petroleum

Materials Corporation, subsidiary of China National
Petroleum Corporation (CNPC), to provide the enterprise control
and monitoring technology for its new Sino-Myanmar oil and gas
pipeline. The engineering station control system to be provided
by Schneider Electric will enable real-time, remote monitoring
and management of the new pipeline and support the operations
efficiency of the company. Further, seamlessly integrated
information management solutions will support timely business
decisions and contribute to financial governance, security, and
environmental accountability goals.
Chinas largest oil and gas producer and supplier will deploy
Schneider Electrics OASyS enterprise control and monitoring
solution system, fully integrated with liquids management system
(LMS), gas measurement and analysis system (GMAS), and leak
detection system applications.
The enterprise control and monitoring technology will not only
guarantee the safe and smooth transmission of oil and gas but also
make available the reliable metering data needed for proper
custody transfer between China and Myanmar. The project is
expected to be completed by the end of 2013.
The Sino-Myanmar pipeline project marks a continuation of
Schneider Electrics six year relationship with CNPC, during which
time it has provided technology for the Lan-Zheng-Chang project,
West Pipeline crude oil and refined products project, and recent
Beijing Master Control Center project.

Technip has announced that it has signed two agreements with State
Corporation Russian Technologies (Rostec) during an official meeting
between Franois Hollande, President of the French Republic, and
Vladimir Putin, President of the Russian Federation, last month in
Moscow. The agreements aim at manufacturing flexible pipes and
umbilicals in Russia, for the Arctic region and the Black Sea oilfields,
as well as at the construction and renovation of refining and
petrochemical units in Russia.
Technip and RT-Chemcomposite Holding Company, a Rostec
subsidiary, signed a Memorandum of Understanding (MoU) to
express their intention to form a joint venture (JV) company for
subsea activities in Russia. Under the terms of this MoU, the JV is a
co-operation in the production of equipment for the oil and gas
industry and in particular flexible composite pipes based on
Technips technology. It allows for oil and gas to be produced at the
depth of down to 3000 m and provides for speedy pipelaying
operations. They will also intend to evaluate the possibility of
establishing a research and development centre.
Moreover, another agreement was executed between Technip
and Rustechexport, another company operating under the umbrella
of Rostec, whereby the parties set forth the main terms and
conditions for a jointly-owned company they intend to establish to
provide engineering, design, and turnkey construction for oil
refinery, petrochemical and gas chemical production projects in
Russia, including the facilities required for offshore oilfield
operations.

10

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Safety to the core.

The STOPPLE Plus fitting from TDW increases safety in

high pressure applications.

Engineered to most code

requirements, including ASME
B31.3, B31.4 and B31.8.
LOCK-O-RING Plus technology
eliminates through-flange penetrations,
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Patent pending interlock system provides

positive indication that the LOCK-O-RING
Plus plug leaves are fully extended.

STOPPLE Plus technology eliminates 80% of

the moving parts the remaining 20% are part of the
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To learn more about TDW STOPPLE Plus fittings or our entire portfolio
of line intervention and temporary isolation solutions, contact your
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NORTH & SOUTH AMERICA: 918-447-5500

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ASIA/PACIFIC: 65-6364-8520
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Registered trademark of T.D. Williamson, Inc. in the United States and other countries. Trademark of T.D. Williamson, Inc. in the United States and other countries. Copyright 2013 All rights reserved. T.D. Williamson, Inc.

WP_APRIL2013_05-11.indd 11

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The Gulf of Mexico is

successfully fighting its
way back against the tide.
Gordon Cope reports.

he Gulf of Mexico is one of

the worlds most bountiful
and prolific basins, with
11.5 trillion ft3 of proven gas
reserves and 4.1 billion bbls of proven crude
reserves. In 2011, production amounted to
4.6 billon ft3/d and 1.4 million bpd. New
fields are coming into production, and new
discoveries are being made. Land sales have
resumed, and more are planned.
But the industry also faces strong
currents, including a far stricter regulatory
environment, extreme weather events and
uncertainty over the very significant risks
involved in exploring and producing in one
of the most challenging environments. How
it prospers in the coming years depends very
much on a number of emerging factors.

Deepwater production
and discoveries
Deepwater development is gaining pace.
As part of its US$ 34 billion exploration
and development budget for 2013, Chevron

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13
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says it will continue developing the Jack/St. Malo, Big Foot

and Tubular Bells fields in the Gulf of Mexico. Production
from the deepwater fields is expected to start in 2014 from
Lower Tertiary reservoirs at over 26 000 ft depth. The three
fields may contain more than 500 million bbls of potentially
recoverable oil. In addition:
F In September 2012, production began at Petrobrass
Chinook field, located 250 km off Louisiana in the

Gulf of Mexico. Crude and gas flow was handled by the

BW Pioneer floating production, storage, and offloading
(FPSO) vessel. The Chinook field is located in the
Lower Tertiary, at a depth of 8000 m. The BW FPSO,
which can handle 80 000 bpd, also serves the Cascade
field, which entered production earlier in the year.

F Although BP sold several deepwater assets to

Plains Exploration for US$ 5.5 billion, the company
will continue to operate
Thunder Horse, Atlantis, Mad Dog
and Na Kika platforms in the gulf.
It expects to invest US$ 4 billion
annually in the basin. Production
from the Galapagos field began
When the National Oceanic and Atmospheric Administration (NOAA) published
in June 2012, and was tied back to
its annual hurricane season forecast running from 1st June - 1st November 2012,
the Na Kika platform. Noble also
the prediction was for a relatively quiet year, with a 70% chance of 9 - 15 named
reported connecting production
storms and up to three major hurricanes. Factors favouring a mild season included
from its Santiago and Santa Cruz
strong wind shear and cooler sea surface temperatures in the far eastern Atlantic.
field to the Na Kika platform.
The NOAA has come a long way since Hurricane Andrew, a Category 5 storm,
Production from the Galapagos
devastated Florida in 1992. R&D into hurricane prediction has resulted in significant
area is expected to easily exceed
advances to computer modelling. The Hurricane Weather Research and Forecasting
60 000 bpd.
(HWRF) module was recently upgraded with higher resolution and atmospheric
physics, allowing up to a 25% improvement in track and intensity forecasts. The
F Anadarko and partners are
software also fine-tunes storm structure and size.
on schedule for production
But no seasonal output can predict where a storm will land, and what it
in mid 2014 from the
will destroy. When Hurricane Isaac made landfall near New Orleans in late
300 million boe Lucius deepwater
August, five refineries representing over 900 000 bpd capacity were shut down.
discovery in the Gulf of Mexico.
Another six refineries with 1.7 million bpd capacity operated at reduced rates.
The field will be produced by a
Approximately 1.3 million bpd production was shut-in, equivalent to 94.99% of
truss spar platform, which will
3
the gulf oil production. BSEE reported 3.26 billion ft /d, or 72.5%, of gulf gas
have a capacity of 80 000 bpd of
production shut in. Personnel were evacuated from 509 production platforms
oil and 450 million ft3/d of gas.
of the 596 manned platforms, as well as from 50 out of the 76 rigs currently
operating in the gulf.
New discoveries continue to
But, by early September, operators were already returning to platforms and rigs
emerge in deepwater plays. There
to restore operations. By 4th September, over 710 000 bpd and 1.9 billion ft3/d were
are two major targets for deepwater
back online. All but one of the refineries in the hurricanes path were already back
drilling; structures in the Miocene
to operating or in the process of being restored.
and structures in the Lower Tertiary.
Contrast this to 2005, when Hurricanes Katrina and Rita roared through the
Gulf of Mexico, causing widespread damage to New Orleans and the heart of the
Miocene targets are essentially
gulfs petroleum industry. In addition to breaching protective levees around the
extensions of fields found in shallower
city, they destroyed pumping stations, production platforms and pipeline gathering
waters near the shores of Texas and
systems. It took over a year for the petroleum industry to return to normal; in
Louisiana. The Lower Tertiary play is
all, the hurricanes cost 1800 people their lives, US$ 80 billion in damages, and
a series of large, anticlinal structures
US$ 16 billion in lost production revenues.
with four-way closure. The trend,
Since then, the petroleum industry, federal agencies and the American
which sits beneath a thick wedge
Petroleum Institute (API) have drawn up rules to build stronger facilities and locate
of salt, runs from the middle to the
them further inshore. Design standards for platforms and rigs were upgraded to
western side of the Gulf of Mexico
increase the space between platform hulls and sea level. Moorings for mobile
and is approximately 50 - 70 miles
offshore drilling units (MODUs) were made 50% stronger, and GPS installed to find
wide and 200 miles long. Estimates
drifting rigs. Some pipelines were buried deeper to avoid damage from dragging
issued by the Bureau of Ocean Energy
anchors; others were relocated away from mudslide-prone regions. Redundancies
Management (BOEM) indicate that
were built in to allow re-routing around failed sections. As a result, subsequent
the trend may contain approximately
robust hurricane activity has caused far less damage to infrastructure, and minor
31 billion bbls of oil and 134 trillion ft3
lost production revenues.
of gas that are currently undiscovered
But no one is sitting on their laurels. As Hurricane Sandy demonstrated
and technically recoverable.
in late 2012, there is only so much preparation one can take in the face of a
Total recently made a
superstorm. By the time the hurricane was finished devastating the Caribbean and
significant new oil discovery at
the Eastern Seaboard of the US, 253 people were killed, millions lost power, and
US$ 65 billion of property and infrastructure were damaged.
the North Platte prospect in the
deepwater Garden Banks Block.
The well was in 4400 ft of water,
and penetrated to a total depth

HURRICANE SEASON: LIFES A BREEZE

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That was a sample of

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