Asian Oil and Gas-January-February 2014

ASIAN OIL & GAS
January - February 2014
AOG
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Asset
management
Planning for
Chinas new
energy waves
page 14
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Contents
REGIONAL UPDATES
4 Briefs
Asia-Pacific oil and gas news and views
SHIPYARDS
6 New software spreads

in South Korean shipyards
Following the Deepwater Horizon tragedy, a major
operator started a global roll-out of the Zenator
verification tool. Since then, the software has been
successfully deployed on Western Australias Gorgon
project and others around the world.
GEOLOGY & GEOPHYSICS
10 Seismic roundup
Research, exploration and development activity
continue to expand industrys understanding.
12
FEATURES
12 Sliding sleeve completion systems

Weatherfords Sandy Liu, Winston Zeng, and Don
McRobb discuss how the system can improve
production while lowering costs.
14
14 Upward trends
With LNG and unconventional usage on the rise, Mark
Charman of Faststream Recruitment Group, discusses
Chinas changing workforce landscape.
NCE SUBSEA FOCUS
NCE1 World-class subsea solutions

from Norway
AOGs Elaine Maslin and some of Norways
technological innovators weigh in on trends in subsea
technology, processing, and more.
NCE1
CONTRACTS
16 Sparrows Group triple contract win

Three recent contract wins have helped to boost the
crane maintenance and operations services supplied by
Sparrows in Asia-Pacific.
COMPANY NEWS
18 Activity
Jee Ltd. signed an MOA with KOSHIPA in November
2013 for the provision of its courses, due to begin in
2014.
PEOPLE
20 Spotlight
Power and automation technology group ABB named
Chunyuan Gu head of its operations in China and North
Asia, effective January.
PRODUCTS & TECHNOLOGY
22 Solutions
New tools and techniques to improve operational
performance.
FACTS & FIGURES
24 Numerology
A capsule view of interesting industry statistics.
22
Cover image courtesy Faststream Recruitment Group
aogdigital.com
January February 2014 | AOG
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January
February 2014
AOG
ASIAN OIL & GAS

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Emerson Network Power was selected as

the main uninterruptible power supply
systems provider for Shells Prelude
floating LNG vessel.
Currently under construction in Korea, Prelude is the worlds fi rst floating
liquefied natural gas project. It will be
deployed in the Browse basin offshore
Western Australia. In 2010, Emerson
Process Management, another global
business of Emerson, was selected as the
main automation contractor for the Shell
Prelude development.
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Enping 24-2 project, located in Pearl

River Mouth basin, is expected to reach
peak production 40Mbo/d.
First oil from the Golden Eagle development in the UK North Sea is planned
for late 2014 and is expected to reach a
peak daily production of up to 70Mboe.
CNOOCS 2014
BUSINESS PLAN
CNOOCs net production target of
2014 is in the range of 422-435MMboe,
including about 69MMboe as a result of
the acquisition of Nexen Inc.
CNOOCs net production for 2013 is
estimated to be around 412MMboe.
During 2014, CNOOC expects 7 to
10 new projects to come onstream.
Oilfields Kenli 3-2 and Qinhuangdao,
both located in Bohai Bay, are expected
to reach a peak daily production of
37Mboe and 36Mbbl, respectively. The
JAPAN LNG IMPORTS

CONTINUE TO RISE
For the second year in a row, Japans
LNG imports hit record levels following
the decision by the countrys decision
to shut down its nuclear stations in the
wake of 2011s Fukushima disaster. The
country is the worlds top gas importer.
Up 0.2% over 2012, Japans Ministry of Finance said that LNG imports
increased to 87.49MM tonnes
during 2013. Crude oil imports decreased to a two-year low: 3.65MMbo/d,
while thermal coal imported primarily for power generation rose 1.3% to a
record 109.03MM tonnes.
South Korea
KEEL LAID FOR
PETRONAS FLOATING LNG
The fi rst block of the keel was laid for
Petronas fi rst floating LNG facility at
the Daewoo Shipbuilding & Marine
Engineering shipyard in Okpo, South
Korea.
The PFLNG-1 will be moored in Malaysias Kanowit gas field, off Sarawak,
and is expected to produce 1.2mtpa.
Construction of the facility began in
June 2013, and is projected to be completed in Q4 2015.
aogdigital.com
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Indonesia
HESS COMPLETES
PANGKAH SALE
Hess Corp. completed the sale of its

Pangkah asset to a subsidiary of PT Saka
Energi Indonesia for US$650 million
comprised of the sale of equity interests
in holding entities and inter-company
debts. Pangkah, located off the coast of
Indonesia, produced an average of
9,000boe/d net to Hess in the fi rst three
quarters of 2013.
Hess announced in December 2013
that the company entered into two
separate agreements with a joint venture between PT Pertamina and PTT
Exploration and Production Company
Ltd. (PTTEP) to sell its interests in the
Pangkah and Natuna A fields offshore
Indonesia for $1.3 billion.
Myanmar
MITSUBISHI INVESTS
IN YETAGUN
Japans Mitsubishi entered into a share
purchase agreement with JX Nippon
Oil & Gas Exploration to acquire a 10%
share of Nippon Oil Exploration (Myanmar). NOEM holds a 19.3% participating
interest in Blocks M-12/13/14 in the Andaman Sea, which includes the Yetagun
gas field.
This is Mitsubishis fi rst participation
in an upstream oil and gas project in
Myanmar.
This project is operated by a subsidiary of Petronas, the national oil
company of Malaysia. NOEMs net sales
volume is around 8Mboe/d of natural
gas and 800bbl/d of condensate.
Vietnam
KRISENERGY
COMPLETES DRILL TEST
KrisEnergy Ltd. completed drilling and
testing the Cua Lo-1 exploration well in
Block 105-110/04, which covers 7192sq
km offshore northern Vietnam, with
water depths of 20 to 80m. The well
confi rms both the trapping mechanism
and the existence of a petroleum system
in Block 105.
The Cua Lo-1 well was drilled to a

measured depth of 2867m. A drill stem
test was conducted on a reservoir evaluated with the largest potential within
the prospect.
Although gas flowed during the test,
the poor reservoir deliverability rate,
combined with high carbon dioxide
content, suggests that development of
the tested reservoir is unlikely. The well
will be plugged and abandoned.
exploration Block 2F in Malaysia with

Petronas (40%). This is the fi rst GDF
Suez exploration and production license
in Malaysia.
Block 2F is located about 300-400km
off Sarawak. The license covers an area
of approximately 5500sq km with water
depths ranging from 100m to 1200m.
The deepwater exploration campaign
will last four years.
Thailand
TETHYS HITS IN KAZAKHSTAN

Tethys Petroleum announced that an
updated oil resource report on the
Klymene prospect in Kazakhstan shows
total unrisked mean recoverable oil
resources to be more than 400MMbo.
The prospect will be tested with a
new exploration well to be spudded
mid-year 2014.
Klymene is in the Kul-Bas exploration and production contract area. The
prospect was identified from seismic
data and indicates a four-way closure with bright spots at two of three
prospective stratigraphic levels within
the Cretaceous and Jurassic sequence,
both of which are productive in the
companys Doris oilfield about 60km to
the east.
PTTEP DIVULGES
INVESTMENT PLANS
Thailands PTTEP released its five-year
investment plan, which emphasizes a
focus on production, development, and
exploration activities. The plan does not
include any new investment opportunities.
PTTEP looks to spend US$27.28 billion in 2014-2018 on projects off Africa,
Australia and Myanmar.
From 2012-2013, PTTEP saw a 6%
year-over-year increase in production. PTTEP projects sales to rise by
another 15.4%, to 337,000boe/d from
292,000boe/d in 2013.
PTTEP plans to spend a total $5.51
billion this year, $5.54 billion in 2015,
$5.47 billion in 2016, $5.63 billion in
2017, and $5.13 billion in 2018.
Malaysia
MUBADALA SWAPS
EQUITY WITH SHELL
Mubadala Petroleum signed an agreement with Shell to swap equity in two
exploration blocks offshore Malaysia.
Under this agreement, Mubadala Petroleum will gain a 20% interest in the
deepwater Block 2B, while Shell will
gain a 20% interest in Block SK320.
Deepwater Block 2B is operated by
Shell; Mubadala Petroleum operates
Block SK320. Malaysias Petronas Carigali is a participant in both blocks.
In addition, the current exploration
drilling campaign in Block SK320 has
yielded two new gas discoveries, Pegaga
and Sintok, to add to the existing M5
discovery. The Sintok-1 well was drilled
2775m into the main target reservoir and
penetrated a 290m gas-bearing carbonate reservoir.
GDF SUEZ ENTERS MALAYSIA
Frances GDF Suez (20%) and operator
JX Nippon Oil & Gas Exploration (40%)
have jointly entered offshore deepwater
Kazakhstan
Russia
CENTRAX TO INSTALL
TURBINES IN SIBERIA
Commissioning began at the largest

installation of gas turbine packages
produced by British-based specialist
Centrax on a single site, anywhere in the
world.
Twelve of the packages, each containing
a single 5.2MW Rolls-Royce 501-KB7 gas
turbine, are being readied for service at
the Ust Teguss field, in the heart of the
Siberian oil and gas industrythe Tyumen region of the West Siberian plain,
1600km east of Moscow.
The Centrax units total generating capacity of 62.4MW will meet the facilitys
growing energy demands.
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Shipyards
New software spreads in
South Korean shipyards
By GlobalFalcon
In summer 2010, following the
Deepwater Horizon tragedy and with
Macondo spewing out of control in the
Gulf of Mexico, a major operator started
a global roll-out of a software product
called Zenator. Since then, the software
has been successfully deployed on
half a dozen of the companys projects,
including the mighty Gorgon project
for Western Australia and about the
same number for Falcon Groups other
customers around the world.
Zenator is an innovative, robust
verification tool, focused on achieving
safe and timely completions during a
projects cycle and ultimately, handover
to the operations staff. The software is
usually implemented during the FEED
stage, when it is high on the influence
curve and soon becomes the central
repository for engineering tag data,
enabling users to verify each activity
that will ultimately impact safe, timely,
handover to operations; from tracking and reporting factory acceptance
tests through phased completion of
the checksheets that mark: mechanical completion, pre-commissioning,
dynamic commissioning, start-up and

performance testing, while also managing all punch list items, management of
change, inhibits, isolations and tie-in
points.
By default, Zenator is coded with a
work flow that matches the structure
shown in the diagram that Falcon Group
calls a Completions Pyramid. This
matches the structure the American
Petroleum Institute includes in Fig. 1
of its Recommended Practice, 1 FSC
(Facilities System Completion, Planning
& Execution), published in July 2013.
A wide spread of stakeholders on a
typical project deploying Zenator enjoy
the clarity, transparency and focus it
brings. While Zenator is traditionally
owned by the commissioning manager, other key stakeholders will be
Engineering, Construction, QA, Project
Controls and of course, Operations.
When used to audit the completion of a
project at major milestones, to verify the
status on the facility and in the database
and check these are the same, Zenator
serves as an invaluable confidencebuilder. Savvy customers know this
and use Zenator to their best advantage,
helping establish trust with regulatory

and certifying authorities.
This year and next will see Zenator
being deployed on over US$150 billion
of capital projects around the globe, 25
in total, making it the worlds leading
completions management software. The
full project list includes 14 projects for
Chevron Corp., 6 for oilfield services company Petrofac, and the rest spread among
Falcon Groups customers in Europe,
Africa, the US and South America.
The vast majority of projects deploying Zenator since 2011 and through
2015 are in the Asia-Pacific region,
concentrated in the three South Korean
yards of Daewoo Shipbuilding & Marine
Engineering, Hyundai Heavy Industries,
and Samsung Heavy Industries. The list
includes Gorgon and six other projects,
at various stages of construction, all
using Zenator to track, control, manage and report, from granular detail to
overall progress.
Falcon Groups president and CEO,
Alan Mills, believes this is because
Zenator focuses on the needs of
commissioning and the ultimate enduser, operations. We designed and built
Zenator to exactly meet the needs of
these key stakeholders. Having around
35 years experience and worked the
first 20 or so in engineering, construction, commissioning and operations,
Fig. 1: Completions pyramid
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Fig. 2: Software implementation over project life

I knew those key stakeholders were
being chronically under-served. Zenator
rectifies that situation and restores balance. From the outset, we made Zenator
configurable so that clients can easily
wrap it around their way of working.
Our customers are mainly operators and
contractors in oil and gas, but we also
have customers involved in shipbuilding, nuclear new build, nuclear decom-
missioning and civil infrastructure

projects.
From the companys Houston offices,
Mills went on to say, if you focus on
the way a project is commissioned and
completed, with safe and timely handover to Operations, you improve business
performance and the bottom line. In
fact, it was assumed this would happen
when owners calculated the net present
value, several years earlier when the

project was sanctioned. Using Zenator is
all about a way of working, whether the
project is enormous, like Gorgon, or very
small, such as modifications to brownfield facilities. So the argument I sometimes hear that a project is too small to
use Zenator is not valid. Its true, on giga
projects like Gorgon, Zenator is populated with over a million records and
users rely on it entirely to do their work.
But we know from the experiences of
our corporate customers, that used on
much smaller projects, it brings consistency to the way company completes its
projects and provides essential development of the companys talent. I am very
proud that our software is being used to
develop and train the next generation of
commissioning managers.
Falcon Group are not complacent about
the success Zenator is receiving, Mills
added, Our work never stops. There is an
exciting development program that will
bring further innovation to our customers.
We dont dictate how a customer should
work, instead we set out to provide new
ways of working. There is some streamlining and some radical innovation in the
pipeline for our customers. AOG
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And when you join SPE, you also join your local section. So, you can meet regularly
with other members in your area to exchange ideas and discuss common issues.
SPE has something for everyone working in the upstream oil and
gas industry, no matter where on the globe you may be.
Join our worldwide membership today at www.spe.org/join.
12/19/13 9:56 AM
aogdigital.com
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Ramform Atlas named in Japan

Petroleum Geophysical Services ASA
(PGS) has launched its second Ramform
Titan class vessel, the Ramform Atlas,
at a naming ceremony at the Mitsubishi
Heavy Industries (MHI) yard in
Nagasaki, Japan on 24 Jan 2014.
The vessel will typically tow a
network of several hundred thousand
recording sensors over an area greater
than 12sq km, equivalent to 3.5 x
Central Park, New York.
Ramform Atlas (pictured) is the
second of four such vessels to be built
in Japan. Her sister ship, the Ramform
Titan, has been operating successfully
since its delivery in April 2013.
The design combines maritime technology and the imaging capabilities of
the GeoStreamer seismic acquisition
technology.
The vessels 70m-broad stern accommodates 24 streamer reels: 16 reels
aligned abreast and 8 reels further
forward.
It can carry more than 6000 tons
of fuel and equipment, and will have
quarters for up to 80 crew members,
with 60 single cabins, and 10 twin

cabins for visitors, all with separate
bathrooms. AOG
Right: The Ramform Atlas.
Below: The naming ceremony for the
Ramform Atlas at the MHI shipyard.
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Geology & Geophysics

TGS plans Barrow seismic survey
TGS will conduct a 3D seismic survey off northwest
Australia. The Huzzas is a 2100sq km 3D survey that will
cover the Barrow sub-basin.
The data will be acquired with Volstad Maritimes M/V
Geo Caspian using CGGs BroadSeis and BroadSource
technologies. Preliminary data will be available Q3 2014.
Upon completion of this survey, the total TGS portfolio
of 3D multi-client coverage offshore Australia will exceed
32,500sq km.
Gazprom readies Chayandinskoye,

Kovyktinskoye seismic
In December 2013, Gazprom announced its plans for
seismic surveys in the Chayandinskoye and Kovyktinskoye
fields, located in the Yakutia and the Irkutsk regions.
Gazprom says it will conduct a 1200sq km 3D seismic survey in Chayandinskoye, in addition to acquiring 100sq km
of 3D seismic over Kovyktinskoye field.
OMV completes Kaka 3D in Taranaki basin

OMV New Zealand Ltd., operator of offshore Taranaki
Basin permit PEP 51906, completed the Kaka 3D seismic survey, 7-18 January 2014. The polygonal 156sq mi.
(403.8sq km) survey is within and adjacent to PEP 51906,
and the vessel acquired an additional 26sq mi. of 3D lines
to tie into the existing Matuku 3D survey (shot in 2011).
PEP 51906 ownership: OMV (65%), Octanex N.L. (22.5%),
and New Zealand Oil & Gas (12.5%).
Quest investigates gravity,

structural high in Ranau PSC,
Sumatra
Australias Quest Petroleum NL
reported the results of reprocessing
seismic over a gravity high in the Ranau
PSC, off south Sumatra, Indonesia.
Image of the Chayandinskoye field courtesy Gazprom.
Quest engaged PT Tesla Indonesia to reprocess 38.5mi. (62 km) of 1993-vintage

2D seismic, beginning in October 2013.
PT Tesla used Promax R5000 software
for time-domain processing, and Paradigm GeoDepth software using common
reflection angle migration (CRAM).
The results indicate the presence of a

structural high that coincides with the
gravity high, covering more than 4.6sq
mi. (12sq km), with 250ft of structural
closure. Seal integrity, source and maturity definition require further investigation and review.
CNOOC completes PNG survey

BGP PNG Explorations 2D seismic acquisition vessel, Dong
Fang Kan Tan No. 1, completed a 2D seismic acquisition
project covering the offshore petroleum prospecting licenses
PPL374 and PPL375 on 3 Jan 2014. The vessel recorded a total
of 3015line-km of 2D seismic data over the PPLs in Papua
New Guinea.
UMC Energy holds a 30% interest in permit operator
Gini Energy Ltd., which holds 100% interest in the permits; CNOOC Ltd. holds the remaining 70% interest in Gini
Energy. CNOOC operates these permits, is funding the entire
cost of the survey, and will be responsible for processing the
2D data.
10
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Content is copyright
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Portsmouth, NH
Tijuana, Mexico
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2/4/14 1:48 PM
Sliding sleeve c
Improving production
at a lower cost
By Sandy Liu, Winston Zeng
and Don McRobb, Weatherford
During fracture-stimulation operations, achieving efficient
and secure zonal isolation is essential to ensuring that fracturing fluid reaches the desired target zone, while protecting
the areas in the reservoir around it. Often, the choice of zonal
isolation methods comes down to either a plug-and-perforation (plug-and-perf) completion using composite plugs, or a
sleeve completion.
While both methods have their advantages depending on a
given wells geometry, economics and production target, major
differences exist. In terms of pure completion efficiency,
sleeve completions are increasingly outpacing plug-and-perf
completions in both conventional and unconventional wells.
Efficiency gains with sleeve completions are evident in
three key areas. First, in terms of the time required to stimulate individual stages, sliding sleeves allow for up to 15 stage
completions per day. Conventional plug completions, by contrast, typically only allow for five stages per day.
Sleeve completions may also lower spending on resources
such as water. By avoiding the need to pump plugs into place,
an operator may reduce their water usage by as much as 30%.
Operators also enjoy safety benefits with sliding -leeve
completions, which do not require the use of perforating guns
and explosive charges to create access to the formation. A
typical plug-and-perf job may require perforating 17 distinct
stages with three perforation clusters per stage, for a total of
51 explosions per completion.
Inroads in China
An operator in China looking to improve productivity in long,
horizontal oil wells decided to test the potential of sliding
sleeve completions. Previous completion systems in older
wells in its operating field, located in KuChe county, Xinjiang
Province, were prone to failure due to the challenges of build-
The close collaborative development process between Weatherford and the operator delivered a sliding sleeve completion system
that would achieve production expectations in a tight timeframe and without fear of formation damage or loss of wellbore integrity.
12
aogdigital.com
AOG | January February 2014For reprints please contact the Publisher.
012_AOG0214_Product opt- WTH.indd 12
1/30/14 5:14 PM
e completion systems
ing out long laterals.

These wells, which target an Ordovician carbonate reservoir, are difficult to drill to target depth (TD), thanks to significant friction and torque buildup experienced in the lateral
sections. They also consume large quantities of drilling mud
and generate significant costs for drilling equipment and services due to the generally low rate of penetration (ROP) to TD.
The operator also faced tight time deadlines between drilling the hole and completing the well, as the risk of wellbore
collapse was high in the long, lateral openhole section. The
operator selected Weatherfords sliding sleeve completion
system for trial in a gas development horizontal well.
Targeting the zone

Weatherfords ZoneSelect system is a modular, sliding sleevebased, openhole completion system designed to provide greater flexibility in stimulating individual stages in a multizone
completion. The system incorporates a fracturing sleeve, an
isolation packer and accessory tools to selectively isolate and
stimulate a formation within tightly confined parameters.
The operator supplied all relevant well data and project
parameters, which Weatherford used to develop and deploy
a comprehensive well plan. Ultimately, the required solution
would have to save on completion costs, rig operation time
and fracturing time, while successfully withstanding the
high temperatures and pressures expected in the well. These
conditions had previously hurt the performance of other
completion systems in similar wells in the field.
The drilling fluid used in this field also posed a challenge to
the setting time of the packer systems. To ensure that the water-swellable elastomers in the packer would swell and set in
a reasonable time period to keep the completion operation on
schedule, Weatherford conducted extensive testing and tweaking of the packer to develop the optimal elastomer composition.
This upfront planning and qualification testing required
close collaboration with both the client and Weatherfords
own operational support base in Tanggu, TianJin, located
more than 4,000km away. An integrated completions service approach was undertaken to ensure that all completion
equipment was thoroughly vetted and prepared, mobilized
and deployed downhole as seamlessly and safely as possible.
This process also required having back-up equipment and an
emergency back-up plan in place in the event that something
went wrong during deployment.
The operator was closely involved in the planning and
qualification process, and carefully reviewed the recommended completion strategy before giving its approval. The system
would be made up of SingleShot fracture sliding sleeves,
which allow multiple zones to be fractured in a single trip by
opening a port, fracturing and then moving to the next zone
without a thru-tubing intervention.
A 4 1/2-in. x 5 3/4-in. hydraulic openhole packera
two-stage mechanical sealing tool designed for multizonal
isolationwould be used to provide both mechanical and
swelling-elastomer isolation. This packer is designed for

increased sealing capability with a lower pack-off force to
reduce formation stresses. Additional accessories, including a
frac ball system that deploys balls of the same size to actuate any number of sleeves in the completion, rounded out the
completion system offering.
Executing the plan

All necessary tools and accessories were mobilized to the well
site to execute the completion of the well. The equipment was
laid out on the pipe deck and tallied to ensure that all necessary components were present. A pre-job meeting was held
with the entire rig crew to inform members of their designated
duties and roles.
This lower completion string containing the sliding sleeve
and packer assemblies was then successfully installed to a
depth of 22,525ft (6866m), which represented the deepest
installation of the system to date.
The process of picking up the packers and blank joints and
any other associated lower multizone completion equipment
from the pipe deck was efficient, and the completion was deployed to the setting depth at a swift rate. The operator was able
to set the packer and carry out system testing instantaneously.
After the fracturing was completed, the swellable elements
activated according to the operators time requirements and
increased the sealing area to 10ft (3m) in total length, without
losing the 10,000psi (968.94MPa) rating. The large upper bore of
the hydraulic openhole packers enabled the operator to maximize flow rates, while achieving instant-set isolation in the
formation.
This collaborative solution using the ZoneSelect family of
completion products helped the operator meet its objectives of
deploying a complete solution in a tight timeframe and deliver
desired production rates. Having mechanical and swellable
elements in one packer enabled the operator to achieve in only
one trip what conventional technology requires two or more
trips to accomplish, saving more than 40% in rig time and
associated costs.
With this completion system fully in place, the operator
is now evaluating the fault formation for its oil production
potential. If the evaluation is promising, the formation will be
fully developed for production. AOG
Sandy Liu is Weatherfords Cased Hole Completion Sale
Manager in China.
Winston Zeng manages Weatherfords Completion business
which include cased hole completion, open hole completion,
sand control and Frac chemistry business unit in China.
Don McRobb is the Asia Pacific Regional Openhole Completions
Manager in Weatherfords Beijing Office where he manages the
ZoneSelect Systems, swellables and openhole packers being used
forunconventional and conventional Wells in the regions.
aogdigital.com
012_AOG0214_Product opt- WTH.indd 13
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Upward
trends
With LNG and unconventional
usage on the rise, Mark Charman
of Faststream Recruitment Group,
discusses Chinas changing
workforce landscape.
hina is the worlds most populated country and the

largest energy consumer in the world, which makes it
very significant on the global energy stage.
According to a recent report published by The Economist
Intelligence Unit, global energy demand will grow in 2014 and
this is, in part, due to Chinas tremendous economic growth.
Despite dropping from its year-on-year double-digit growth
14
in 2012, the prosperous Chinese economy still commands a

colossal amount of energy resources.
The US Energy Information Administration (EIA) states that
China produced an estimated 4.3MM b/d of total oil liquids in
2011, 95% of which was crude oil. At the end of 2013, Chinas
oil production was expected to rise by 170M b/d to nearly
4.5MM b/d, eventually hitting 4.7MM b/d by 2035.
China spends billions of dollars in pursuit of foreign energy
supplies, but there has been a considerable investment in
hydropower in recent years, to reduce the divide between
consumption and domestic production. These investments,
including the $25 billion Three Gorges Dam project, have
and will continue to have a major impact on the recruitment
market in the region.
The countrys major ambition is to move toward natural gas,
and the government looks to double its consumption by 2015
by pushing the use of non-fossil fuels to 15% of the countrys
total energy use by 2020. If achieved, China would match the
US as the top natural gas consumer globally by 2035 and ease
its dependence on imported oil. In time, this will lead to the
construction of onshore and offshore LNG facilities, which
means the demand for construction and project managers and
those with project management skills will rise.
After a two-year struggle to get out of the sluggish maritime
construction market, Faststream Recruitment Group has seen
signs of a buoyant Chinese labor market as it picks up momentum in the jackup construction market. This is mainly due to
aogdigital.com
AOG | January February 2014For reprints please contact the Publisher.
014_AOG0214_china2.indd 14
1/30/14 5:20 PM
the recent deepwater discoveries for potential shale opportunities in Bohai Bay and the South China Sea: In August 2013,
China National Offshore Oil Corp. (CNOOC) reported seven
new discoveries and 18 appraisal wells offshore China, which
were traditionally closed to Western service companies.
However, without this Western support, Chinese service
businesses lack the capabilities and expertise to run these
activities. With that, we have seen an increased demand for
foreign talents, particularly westerners who relocate to China
to work for its state-owned oil companies. As part of these
roles, candidates receive full expatriate packages, which includes housing and transportation allowances and education
for children. This has been a popular trend this past decade,
and we expect it will continue into 2014 and beyond.
As Chinese companies look to work with Western service
companies, Western subsea contractors will have the opportunities to expand operations through new set-ups, joint
ventures or production-sharing contracts in Chinese territory.
Most recently, we have sourced personnel for appraisal well
drilling programs which have been carried out in Bohai Bay.
These agreements have also opened up new opportunities for
senior engineers who are usually required to lead a team of
junior or inexperienced engineers.
While the engineering of subsea modules such as the buoyancy module, templates and manifolds continue to be done in
Western regions, we expect construction work for these parts
to increase in 2014, offering new employment opportunities
in Chinese fabrication yards. Engineers with quality assurance and quality control, project management and commercial experience are favored in this industry and we foresee a
large push in the recruitment of these positions. Expatriates
will also be required for senior appointments managerial
positions and beyond, for example while the ground fabrication works will be carried out by locals.
We also anticipate an increase of companies typically focusing on downstream business venturing into the upstream
territory. This trend is beginning to gain popularity amongst
some of the more renowned onshore refinery engineering, procurement, construction, hence creating a pull factor for senior
executives who are already working in upstream companies
to take up challenges in new start-ups. Senior project directors, vice presidents for operations and commercial directors
are required and a large amount of recruitment activity will
be carried out to ensure experienced personnel are placed in
these positions.
Current upstream activities have also spurred the new
construction of onshore refineries, tank terminals and jetties.
Many of these projects are currently happening in China in
southwest China, where experienced project and construction
managers are in demand for this sector.
Chinese yards are currently picking up orders for the
construction of deepwater facilities such as FPSOs, semisubmersibles and drillships. These operations require far more
technical knowledge compared to work done for shallow
water facilities, for which Singapore yards are historically
popular. We have seen a shift of expertise from Singapore to
China that has resulted in a 10-15% rise in salary across different appointment levels to attract the best people, as Chinese
companies are keen to excel in a new specialized area. AOG
Mark Charman is the founder and CEO of the Faststream
Recruitment Group.
Established in 1999, Faststream is a recruitment organization specializing in staffing maritime, oil and gas, mining and
supply chain positions. The company employs more than 130
people at bases in Southampton, Singapore, Perth, Houston,
and Fort Lauderdale, Florida.
Educated at Southampton Solent University, Charman began
his career in specialist recruitment in 1993 as a division manager with Matchtech Group Plc.
Charman is a fellow of the Recruitment and Employment Confederation and a member of the American Staffing Association.
aogdigital.com
014_AOG0214_china2.indd 15
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1/30/14 5:24 PM
2014 Supplement to
in partnership with NCE Subsea
World-class
subsea solutions
from Norway
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NCE.indd 2
1/20/14 7:28 PM
N CE S U BS E A FO CUS 2 0 1 4
Profile
Subsea solutions
from Norway
By Tove Ormevik, offshore installation manager, Skarv FPSO, BP, and
chairman of the board NCE Subsea.
N
Owe Hagesther is the CEO
of Norwegian Centre of Expertise
Subsea (NCE Subsea)
Education: Hagesther holds an
MSc in Computer and Information
Sciences from the University of
Bergen and a MBA in Strategic
Management from Norwegian
School of Economics and Business
Administration.
Experience: He has experience
from industries such as oil & gas,
banking & finance, IT & telecommunications, energy, governmental,
consulting and maritime technology.
Hagesther describes himself as an
entrepreneur, with projects including
being a founding partner of Nordic
Integrator Group, and running and
owning management consultancy
Nordic Mind, under his belt.
His last position was CEO of Sea
Hawk Navigation AS (see page 25).
He has also worked in senior roles
for BKK Marked, Bouvet ASA, and
EDB Business Consulting. His earlier
career saw him working at Den
Norske Bank and Statoil.
Other roles: Hagesther is a
board member of Knowit Quality
Management As.
Interests: Hagesther lists his
interests as new technology,
investments, hunting and fishing,
reading novels, music, history, traveling and gourmet cooking.
He says: World-leading expertise
on subsea solutions are developed
in Norway. This position in the global
subsea market is important to both
manage and further develop. The
Norwegian Centre of Expertise (NCE)
is a driver and facilitator for innovation and internationalization, and we
have an important role in promoting
the Norwegian subsea industrys
competence and capacity.
orway is the worlds leading nation

on subsea technology, products,
and services. In the Norwegian Centre of
Expertise Subsea (NCE Subsea) we are
committed to being world-class at what we
doto facilitate and implement activities to
strengthen the Norwegian subsea industry.
This was confirmed when we were
awarded the Gold Label of Cluster
Management Excellence in 2013. With a
100% score on all evaluation parameters,
we got evidence that we are among
the best in the world at what we
do. Being awarded Gold Label is a
major achievement, and an international acknowledgement of
the work performed since 2006.
I have followed the development of NCE Subsea since it was
established, and the Gold Label
assessment report confirms that we
have been able to focus on strategically
important issues, and work closely with
stakeholders in the subsea cluster.
We are now working to position NCE
Subsea for the next level of cluster
Contents
3 Profile: NCE Subsea CEO Owe Hagesther

Subsea solutions from Norway: an
introduction from NCE Subsea chairman
Tove Ormevik
programs. NCE Subsea is one of the

Norwegian cluster facilitators best qualified for status as Global Centre of Expertise
(GCE), which is a program for the most
mature Norwegian clusters positioned as
global knowledge and industry hubs.
We want to build a facilitator for the
entire Norwegian subsea industry, based
on regional hubs, which will be working on
issues specific to their geographical and
disciplinary areas. The GCE status signifies a considerable boost for the subsea
cluster, with additional resources, and a
longer-term perspective for the development of the Norwegian
subsea industry.
We aim for a
greater national
and international
role, and, in alignment with this,
we continue to
promote collaboration between the
worlds leading
subsea environTove Ormevik
ments. Most recent
is the signing of an agreement that makes
NCE Subsea a model for subsea cluster
development in Rio de Janeiro, Brazil.
16 Leak detection, a real-time requirement:

Elaine Maslin explores efforts to develop
integrated environmental monitoring
solutions.
19 World Class Cluster: Heidi Skalevik
explores NCE Subseas successes and

future goals.
4 Setting the scene: Analyst Rystad outlines
20 Powering the future: the subsea power
6 Margins to be made: Subsea processing is
21 A fuel cell future: CMR proposes
global subsea market drivers
poised to grow, but also has its challenges.

Elaine Maslin reports.
10 Focus on efficiency: Norwegian operator
Statoil is taking action on efficiency. Torgeir

Hgy reports.
12 Deeper, lighter, composites: Vello Nordic

AS managing director on deepwater
technology.
13 Brazil beckons: South America offers

fertile territory for AS Connector.
World-class Subsea Solutions from Norway, is a supplement
to Offshore Engineer, published by AtComedia.
Supplement editor, Elaine Maslin, emaslin@atcomedia.com
Advertising sales, Brenda Homewood, brenda@aladltd.co.uk
Art and production, Bonnie James
Reprints, Jill Kaletha, jillk@fosterprinting.com, +1-219-878-6068
systems of the future.

subsea power cells
22 AHC in Asia: Scantrols active heave
compensation solutions thrive in Asia
23 Fabricating the subsea factory: Norways

NLI Subsea has global ambitions
25 On the radar: Sea-Hawk navigation helps

identify growlers
26 Subsea metering challenges met by Roxar

and Huisman opens Bergen office.
AtComedia, 1635 West Alabama,

Houston, Texas, 7706-4101, USA.
Tel: +1-713-529-1616
Email: info@atcomedia.com
www.oedigital.com
NCE Subsea: www.ncesubsea.no
NCE Subsea 3
Supplement to Offshore Engineer
NCE.indd 3
1/20/14 8:26 PM
Setting the scene

Norwegian technology is a strong contributor to the current global
subsea boom. Jon Fredrik Mller puts the market into context.
he global subsea market has undergone a tremendous development

over the last decade.
From about US$7 billion in 2000, the
market is forecasted to reach more than
$40 billion in 2013.
Norway has been one of the pioneering
countries in developing the technology
and know-how behind the yellow steel that
brings the black gold to the surface. So,
how will this market develop, and which
countries will be the main markets in the
years to come?
At the beginning of the millennium,
global subsea expenditure totaled $7 billion. By 2008, the global market grew to a
high of more than $31 billion.
After the financial crisis, the market
contracted, as operators cut back on
investments and put projects on hold to
conserve cash. However, since 2011, the

market has returned to its growth trajectory and 2013 is estimated to have ended
at slightly more than $41 billion.
Since 2011, the oil price has trended
downwards, while the operators capital
expenditure has continued to grow. This
has put pressure on companies free cash
flow, resulting in a reduction in investment
growth. However, relying on the latest
demand scenarios by Ithe International
Energy Agency (IEA), Rystad Energy
analysis indicates that the supply-demand
balance for liquids will get tighter as we
move towards the end of the decade.
Offshore fields will be the most important source of new liquids production, to
deliver on the projected demand growth.
From 2013-2018, operators subsea
expenditure is forecasted to grow from
Global E&P subsea expenditure

US$ billion by market segment
90
80
70
60
50
40
30
20
10
0
2000
2003
2006
2009
2012
2015
2018
Source: Rystad Energy DCube
Global E&P subsea expenditure 2014-2018

US$ billion by top 10 countries and market segment
Brazil
United States
Norway
United Kingdom
Angola
Australia
Nigeria
Subsea Services
Indonesia
Subsea Equipment
Malaysia
SURF
Ghana
0
10
20
Source: Rystad Energy DCube
30
40
50
60
$41- 80 billion, equating to a compound

annual growth rate of 14%. This is sizable
growth. To get there, operators need to
continue to sanction projects. But, to put
it in perspective, this is far less than the
25% annual growth we saw during the
five-year investment cycle culminating in
the market high of 2008.
In 2000, the market was dominated
by the US, Norway, the UK, and Brazil.
These four made up about 80% of the
total market. Those markets are still the
most important subsea markets globally.
But, in 2013, their share of the market fell
to 60%, due to the emergence of offshore
regions like West Africa, and Australia. By
2018, the big fours dominance is forecast
to decline further, to about 50% of the
total market.
In the next five years, Brazil is forecast
to be the largest subsea market globally.
Large scale development of the countrys
pre-salt discoveries by extensive use of
floating production, storage, and offloading vessels, bring significant opportunities
for the subsea industry. It is estimated
that subsea expenditure in Brazil will be
close to $55 billion, over the next five-year
period. Predictred to occupy second and
third place are the US and Norway, with
estimated subsea expenditure of $38 and
$37 billion, respectively.
The subsea market has favorable prospects in the years to come. The first two
steps towards the subsea factory, booster
pumps and separation, are already
proven. With the first full-scale deployment of subsea gas compression around
the corner, the industry is continuing to
expand the market space for subsearelated equipment, and enabling future
developments that may not be commercial or technically feasible today. Following
this development into the 2020s will be an
exciting journey.
Jon Fredrik Mller
is project manager
within the consulting department at
Rystad Energy. His
main area of
expertise is in oil
field services,
particularly
offshore-related. He holds an MSc in
Industrial Economics from Norwegian
University of Science and Technology,
with specialization in mechanical
engineering and finance.
4 NCE Subsea
NCE.indd 4
2014
1/20/14 8:25 PM
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NCE.indd 5
ONESUB-100_Processing_OFFEng.indd
1
1/20/14
9/17/13 7:37
5:39 PM
PM
Margins to be made
in subsea processing
Statoils sgard project.

Illustration courtesy
of Aker Solutions.
The global subsea processing market is estimated to reach US$8 billion by 2020,
with Norwegian firms leading the way. Elaine Maslin reports.
orway has a leading role in the development of subsea processing capabilities, in its own waters, and globally.
Statoils sgard subsea compression
project, in the Norwegian Sea, will be the
first of its type, when it comes onstream
next year.
As well as proving new technology,
the project will help further grow the
global subsea processing market, says
Norwegian energy analysts Rystad
Energy.
Rystad estimates that todays US$500
million a year subsea processing market
could be worth $8 billion by 2020, with
subsea gas compression taking a growing
role.
While the glitz and glamour of cutting
edge engineering has focused attention on analyst, Rystad.

the ground-breaking sgard project, and
Geographically, the lions share of the
Statoils second subsea gas compression
market has been in Brazil, with
project, Gullfaks, some suggest the
about a third of the market,
real money will be in a larger numfollowed by Norway and
ber of much smaller projects,
West Africa, each with
if the industry takes a more
about 20%.
industrialized approach.
We perceive subThe overall market consists
sea processing as an
of four main areas: subsea
emerging market,
boosting, gas compression,
he says. Currently
separation, and water injection.
it has been small
To date, the market has been
awards at an annual
dominated by subsea boosting,
rate of about 3-4.
for oil fields, due to high oil prices.
It is not that big, so
Audun Martinsen,
Gas compression is starting to gather
far, but it has huge
analyst, Rystad
momentum, but is still at an early phase
potential.
Energy. Photo courtesy of
of maturation, says Audun Martinsen,
The North Sea
Julia Weiss, Rystad Energy.
6 NCE Subsea
NCE.indd 6
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1/20/14 7:38 PM
will see near-term growth potential, driven by

Statoil, as will Brazil, driven by Petrobras, with
Southeast Asia and Australia offering longer
term prospects.
Subsea processing can be applied in greenfield and brownfield developments, says Marco
Gabelloni, senior engineer, Aker Solutions.
In brownfield developments, such as the
sgard project, subsea compression can
help increase recovery and extend field
life. Subsea processing has potential
on existing fields, where the water cut
has increased towards the end of field
life, but topside facilities are unable
to handle the extra water content. It
can also enable new tie-ins with the
produced water processed subsea.
Subsea processing offers a solution
which requires little topside modification.
Using subsea compression early on in greenfield developments, can accelerate production
bringing more production in a shorter period
of time, reducing operational costs. It could

also offer a solution in harsh environments, or
remote areas, where installing topsides could be
difficult.
Off shore Norway will experience this firsthand next year when the sgard project comes
onstream. sgard will comprise two 11.5MW
gas compressors, with power from
the sgard A platform, in a 74
x 45 x 26m frame.
Subsea compression as a concept dates
back to the 1980s, says
Gabelloni. Between then
and now has been 30
years work, covering the
first prototypes, the pilot
on Ormen Lange, and now
sgard.
Development work
Marco Gabelloni,
involved
component and
senior engineer,
system qualificationthe
Aker Solutions.
sgards compression station frame

being lowered into place last year
(2013). Illustration courtesy of Aker Solutions.
NCE Subsea 7
NCE.indd 7
1/22/14 10:49 AM
Ormen Lange compression alone has

involved several qualifications lasting a
few years.
Future projects will likely require further
qualification, to meet project specific
needs, and or operator-specific specifications. sgard, for example, is in 270m
water depth, while Ormen Lange project is
in 900m, offering different challenges.
We are now seeing more and more
interest from the industry for this (subsea
compression), says Gabelloni. One of the
reasons is that, by placing gas compression subsea, you can put it closer to the
wellhead and achieve higher recovery
rates, because you have a lower wellhead
pressure. Statoils estimate for sgard is
that they will achieve 280MM boe additional production.
Gullfaks, another subsea compression
project in Statoils project pipeline, will
be different again, with wet gas compression. It is being developed in Bergen by
Norways Framo Engineering, now part of
OneSubsea.
This will see two 5MW wet gas
compressors, in 135m water depth, with

power supply from the Gullfaks C platform via two 2.5MW electric motors. The
compression station will weigh 960-tonne
and measure 34 x 20 x 12m, according to
Statoil. Start-up is estimated for Autumn
2015.
The next big challenge, in subsea gas compression, will be to
incorporate gas reinjection, says
Gabelloni. So far we do not
see a lot of requirement for it,
he says. But the company is
already considering it.
Subsea separation is a more
mature technology than subsea
gas compression, but there are still
only a handful of projects in existence.
Troll, offshore Norway, was the first,
launched in 2001. Others include systems
on Shells Perdido in the Gulf of Mexico,
and Totals Pazflor, offshore Angola.
Removing produced water using
separation facilities on the seabed allows
operators to debottleneck topside facilities, increasing production. In addition it
helps to reduce the pressure drop in the

pipeline from seafloor to topsides, reducing the wellhead pressure, and enabling
higher production, says Gabelloni. The
process can also be combined with subsea water injection, removing the need to
route water topsides before
reinjection.
Aker Solutions is
designing subsea
separation systems
based on both
gravity and cyclonic
technology. They
are still in development work, but the
company plans to
have them commercially available
Bjorn Sgrd,
soon.
business developOne of the chalment leader, wells
lenges is reaching
subsea and risers,
DNV.
a certain level
of water quality
with a compact system, says Gabelloni.
Generally, the bigger the separator, the
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8 NCE Subsea
NCE.indd 8
2014
1/22/14 10:49 AM
lower the oil in water content that can

be obtained. A smaller gravity separator
can be combined with produced water
treatment components using e.g. cyclonic
technology in order to achieve required
water quality.
Another challenge, in the future, will be
CO2 separation, currently not available
subsea.
However, the most immediate challenge
facing the industry is the ability to provide,
on time, subsea equipment. DNV is running a joint industry on subsea forgings, in
order to try and agree standard practice
and parts to improve lead times.
Bjrn Sgrd, business development
leader, wells subsea and risers, DNV,
suggests that, while focus is on the
mega projects, the potential could be
unleashed in making smaller units, and
through industrializing, making them
more affordable without sacrificing quality or reliability.
sgard and Gullfaks are groundbreaking in what they are doing, and they
are very big projects. They are pushing all
the limits, with complex systems that are

bigger than ever, and more professions
involved than ever before, he says.
The industry and media is putting a
lot of attention on those mega projects.
But I believe the really big potential
for subsea is to industrialize the more
ordinary systems. How many sgards
and Gullfaks projects will there be in the
future?
The future potential lies in making
smaller, more robust units that are more
cost efficient to justify investment to. But
those smaller units will naturally have
lower performance, meaning they will run
with a lower efficiency.
Standardization would be a part of
making these smaller, robust, profitable
systems, he says. We take a broader
view of standardization in the industry
and believe more could be done, including
around engineering processes, right down
to user manuals, which would not hinder
innovation or prevent competition, says
Sgrd.
For Statoil, Asgard and Gullfaks are
vital to developing the next generation of

subsea facilities. By these projects, technologies will be proven which will be an
important part of future subsea factories,
it says.
Rystad has already predicted there is
huge potential for the existing market.
Martinsen says there are about 100
projects that could be feasible for subsea
processing solutions offshore Brazil, and
about 80 off West Africa.
But, he says, the supplier market is
limited, with three companies, Aker
Solutions, FMC Technologies, Cameron,
and Framo (part of Schlumberger), with
the latter two now part of OneSubsea,
dominating.
Depending on operators willingness
to invest, and take on the risk of new
technologies, each supplier could benefit
significantly from taking a leading position, pointing to strong competition, but
also limited capacity, in the market.
If they are able to win this market that
will add 20% on top of their revenues in
2020, says Martinsen.
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NCE Subsea 9
NCE.indd 9
1/20/14 7:44 PM
Statoil takes action

for improved efficiency
Cost levels and complexity in the subsea industry have escalated.
As a result, the Norways Statoil is taking steps to increase efficiency and
cost-effectiveness in the sector.
By Torgeir Hgy
ubsea will be among Statoils most

important areas of focus over the
coming years. The company has been
involved in the development of subsea
technology since the late 1970s, and its
first subsea well was brought into
production at Gullfaks in 1986.
At present, the company has
more than 520 subsea wells in
operation, representing over
50% of its oil and gas production. This has positioned Statoil
as the worlds second largest
operating company within subsea
production of oil and gas.
In the years to come, its share of
production from subsea installations will
rise steadily. However, for the company to
realize its longer, deeper, colder objective and vision, a few challenges will have
to be overcome. The main difficulties are
the escalating cost level and the lack of
capacity in the sector.
Instead of just waiting for something
to happen, we are now taking control
of our own future. Through the Statoil
Subsea Improvement Project we have
looked into what can be done to improve
efficiency in the subsea sector, says
project manager Johan Kr. Mikkelsen at
Statoil.
Until now it has been common practice

in Norway for this type of maintenance to
be carried out by the company supplying
the equipment.
80% of our subsea equipment is over
10 years old, and in the long
term this means an
increased need for
maintenance. After
looking into available capacity in the
industry, we have
come to realize
the challenges we
are facing in terms
of future requirements. The industry is heading for
Project manager
Johan Kr. Mikkelsen, a capacity crunch.
In order to improve
Statoil
this area, we would
like to qualify third-party companies to
compete for maintenance contracts on
subsea equipment, says Mikkelsen.
The aim is to lower the cost level by
20% and reduce the lead-time to four
months, i.e. the time elapsed from when
the equipment arrives at the workshop
and until it is ready for mobilization. This
qualification process will start early in
2014, says Mikkelsen.
Third-party companies allowed access
Stronger collaboration with

system and technology suppliers
Through the improvement project, Statoil

has defined five areas in which they will
make a change for the better. These are
technical integrity, planning and predictability, effective after-market, standardization and organization, and roles and
responsibilities, and are areas where
Statoil will look at its own practices as well
as implement more stringent requirements for suppliers.
One of the likely outcomes of this
project is that Statoil will allow for maintenance work on subsea equipment to
be performed by third-party companies.
He underlines that a large proportion of

this maintenance work will still be carried
out by the companys current suppliers.
Close collaboration with the system
suppliers behind the development and
building of technology solutions will
be of utmost importance, but we have
to strengthen our long-term planning
and predictability in order to achieve
improved interaction and efficiency, says
Mikkelsen.
Statoil points out that there is mutual
interest in strengthening collaboration in
order to maximize the value added by the
technology delivered. We will have to get

together to look at the overall quality and
costs, both in terms of completed installations and any future project deliveries,
says Mikkelsen.
Long term commitments

According to Mikkelsen, the future market
will present major capacity challenges.
The young and underdeveloped after-market is particularly vulnerable amid growing
global demand. This is why it is important
to Statoil that the company, together with
license partners, is able to manage this
trend by making long-term commitments,
and through this achieve improved costlevels and shorter lead-time on deliveries.
Our target is to operate on a 3-year
basis, in order to provide the prerequisites
for more efficient deliveries from our suppliers, says Mikkelsen.
He adds: I often say that it is more
demanding to be a good commissioning
company than a good supplier. The objective of the project is improved efficiency
internally, but at the same time we would
like to increase the predictability for the
benefit of our suppliers. As predictability is important in terms of factors such
as increase in staffing levels and new
The subsea Tordis project, offshore

Norway. Credit: FMC, Kongsberg Subsea and Statoil.
10 NCE Subsea
NCE.indd 10
2014
1/20/14 7:44 PM
premises, this is something suppliers have

requested.
Increased standardization and

improved interaction
He emphasizes that there is no doubt that
cost-effective solutions for the future will
depend on rigid standardization. Much
of Statoils current equipment is due
to be renewed, and large parts of this
differ in technical specifications. Hence,
it is important for the company to find
technical solutions that can be used more
universally at these installations.
Subsea is the sector in the oil and
gas industry with the sharpest hike
in costs. Such conditions are of
no benefit to anyone, and it is
important that all involved do
their utmost to turn this trend.
Industrialization and standardization throughout the supply
chain are necessary in order
to achieve the improvements
required. Good interaction with
common targets will be paramount,
says Mikkelsen.
This is why Statoil has introduced the
pilot project Supplier Board. The main difference from the current meeting arenas
is that all those involved come together

in a meeting where a company, such as
Statoil, presents an outline of any future
needs, and hence provide the suppliers
with the prerequisites for effective production planning.
This is intended as an arena for constructive feedback between suppliers and
customers in areas that are not sensitive
in terms of competition, says Mikkelsen.
Deserves credit
Trond Olsen, the former CEO at the
Norwegian Centre of Expertise Subsea, feels
that Statoil deserves credit for
initiating this project.
This is a proactive step by Statoil.
The company has
identified a need for
improved efficiency,
and takes the action
it deems necessary.
Main suppliers in the
sector may not be
equally happy with
the changes this
Trond Olsen
entails, but Statoil
looks to the future and should be commended for doing so, says Olsen.
Find your
subsea
partner
Subsea Index is a bi-lingual matchmaking tool in English and Portuguese.
Utilize it to search for new opportunities in the subsea industry.
The intent of the database is to
create business opportunities by providing accessible and searchable high
quality, business relevant data about
companies and organizations related
to the subsea industry. Information is
available in English and Portuguese.
To help subsea companies find the
right research and development partners, the database also includes additional information about research and
development institutes and universities. In Subsea Index you can search
for information about the scientific and
engineering disciplines that potential
research and development partners
focus on, as well as other relevant
information about each organization.
A wide range of external funding opportunities are available for
research and development projects.
Subsea Index also provides information about some of the most relevant
research and development programs
and call for proposals for the subsea
industry.
The database has had a significant
increase in number of users since it
was first launched in 2009, and visitors cover all major subsea markets
globally.
Registrations free of charge
Registrations in Subsea Index are
free and available to all companies and
organizations delivering products and
services in the global subsea industry.
To be able to provide high quality information it is important all registrations
are updated annually. Once a year all
contacts will be reminded to update
the companys Subsea Index profile.
Subsea Index is owned and operated
by the Norwegian Centre of Expertise
Subsea (NCE Subsea).
Visit www.subseaindex.no to make
a new entry, and use the database
to find your partner in business,
research and development, education
and training.
NCE Subsea 11
NCE.indd 11
1/21/14 12:19 AM
Deeper, lighter, composites

Composite technology is rising to the challenge of deepwater developmentsbut are deepwater developments
ready for composites? Elaine Maslin asks Vello Nordic AS.
An Aker Solutions umbilical with

Vellos umbilical rod placed around the
circumference.
catch up with composite technologies, as

engineers still focus on using metals in
their engineering, says Edvardsen, which
has meant it has taken longer to commercialize such technologies. The 2010
Macondo disaster in the Gulf of Mexico
has also introduced a level of caution.
I think it will start to make a real difference in deepwater in about 5-10 years
time, says Edvardsen. We see development projects taking 3-5 years to become
commercialized, then they have to prove
the technology for them.
Vellos projects include the VELLO
Umbilical Rod, a high modulus carbon-fiber
rod produced in long lengths, for use in
umbilicals in deep waters. These have been
used as strengthening members in deep
water umbillical installations in the Gulf of
Mexico, down to 2800m water depth, and
offshore Angola, on BPs PSVM development, to 2100m water depth, with plans to
use similar material as armoring in flexible
risers for ultra-deepwater installations.
Vello is currently working with NKT
Flexibles to manufacture lightweight
reinforcement for NKTs Flextreme pipe
concept for deep water.
We have some projects we hope will
happen this year. Two to three years ahead,
we have some new projects also, such as
lightweight reinforced flexible pipes and different types of flexible cables.
the first carbon-fiber cable for use in

riser-less well intervention (RLWI), in
partnership with FMC. Vello has also
provided GRP for deck gratings, on
topsides. But it has more potential,
says Edvardsen.
We think, with this technology, you
can go further, says Edvardsen. You
can go deeper with CFRP
material than you can with
traditional materials
today. The weight and
strength ratio will be
completely different. That is the main
drive.
However, to date,
omposites have been used
deepwater developin the oil and gas industry in
ments are still relaa variety of applications over the past
tively new, with few
Per Arne Edvardsen projects developed.
20 years, including onshore production
piping, fire water pipe, and repair.
Technology developers like Vello face a
Now, increasing demands on materials to
chicken and egg situation, where to get
meet future technical requirements, such
their technologies developed, they need
as the demands of deepwater developthe materials qualified, but the qualificaments, have led the industry, including
tion process is too costly for smaller techNorway, to look more closely at composites. nology development companies, so they
Using glass fiber reinforced plastic (GRP)
need to manage to persuade an operator
and carbon-fiber reinforced plastic (CFRP)
to try their materials, says Edvardsen.
makes it possible to create advanced
Engineering practice also needs to
composite materials, with high mechaniLeft: A composite cable with electrical conductors for well intervention.
cal strength, low weight, and high thermal
Right: Carbon fiber creels - the raw material used for making CFRP.
insulation. They also offer a maintenance
free option, with dimensional stability and
high corrosion and chemical resistance.
The focus for these materials is deepwater, says Per Arne Edvardsen, managing director of Vello Nordic AS, which
has manufactured GRP and CFRP since
1965, in both cold-/hot pressing and sheet
molding compound (SMC)/ bulk molding
compound (BMC) pressing. Today the
company specializes in pultrusion.
The company, based in Skodje, Norway,
started working in the oil and gas sector in
2001, working with companies including
Aker Solutions and FMC Technologies.
This has seen investment in the development of new technologies, including
12 NCE Subsea
NCE.indd 12
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1/20/14 7:48 PM
B
a
Brazil beckons
Brazil has proved a fertile market for technology development
and expansion for Bergens AS Connector.
By Elaine Maslin
ergens AS Connector is a company

that has quickly grown its international presence through technology
innovation.
The company, founded in 2000, provides services and equipment for deepwater pipeline inspection, maintenance and
repair. It has been working with Brazils
Petrobras since 2002, and expanded into
several new markets in 2013.
Projects offshore Brazil include providing a complete deepwater pipeline repair
system, installation and supply of seabottom riser protection, and correcting
pipeline freespans, all involving tools and
equipment developed in-house.
AS Connector also developed a
remotely-operated riser cleaning and
inspection tool, The Riser Sovereign, specifically for a requirement by Petrobras
to clean and verify the integrity of flexible
pipelines, says Pl Magne Hisdal, managing director.
The tool is self-propelled and operated
like an ROV. It can attach itself to risers, and
drive along, removing marine growth, and
performing inspections, to provide detailed
information about the risers integrity.
The relationship with Petrobras has
developed over many years, and originally
came about because Petrobras was looking for a new emergency pipeline repair
systems (EPRS), says Hisdal.
At that time, AS Connector had only
worked a couple of years on integrating hydraulics into equipment used for
diverless pipeline repair, resulting in more
lightweight and robust equipment, and
enabling simpler and more cost effective
operation.Petrobras took this concept
to heart, and also helped develop the
system further by incorporating additional
functionality, and applying it to real life
applications.
Since then, AS Connector has worked
closely with Petrobras, developing a
suite of equipment to solve challenges
related to deepwater pipelines. Another
AS Connectors pipeline repair tool

system.
Pl Magne Hisdal, managing director, AS

Connector (furthest to the left)
example is AS Connectors lightweight

pipeline lifting tool, which can fit into a 10ft
container, and has capacity to lift and shift
large pipelines. This tool, together with a
procedure developed in cooperation with
Petrobras, has now been used in hundreds
of deepwater operations to correct pipeline freespans.
Because of the increase in work, AS
Connector has been growing, and not just
in Brazil. At the start of 2014, the company
had 40 staff, mostly engineers, based in
Norway, Bosnia, Croatia, and Brazil. By
the end of the year, it expects this to have
grown to 65.
The Riser Sovereign.
NCE Subsea 13
NCE.indd 13
1/20/14 7:49 PM
THE
FUTURE OF
SOLUTIONS
NCE SUBSEA PARTNERS
NCE SUBSEA MEMBERS

PMS
cmyk
COAST CENTER BASE AS
Norwegian
Piping
NCE.indd 14
1/20/14 7:50 PM
design by colours.no
WORLD-CLASS
SUBSEA SOLUTIONS
FROM NORWAY
The Norwegian Centre of Expertise (NCE) Subsea is an
initiative by the subsea industry for the strengthening and
internationalisation of business, R&D and education. We bring
together and promote the Norwegian subsea industry, which
constitutes a world leading environment for subsea solutions.
To achieve our goals, we work within four focus areas;
Attract and retain talents Utilize business potential
Stimulate innovation
Enhance market orientation
More than 130 companies and organisations form the body
of the NCE Subsea cluster.
NCE Subsea is supported by: Innovation Norway, the
Industrial Development Corporation of Norway and the
Research Council of Norway.
www.ncesubsea.no
U LT R A S O N I C I N T E L L I G E N T S E N S O R S
off shore as
Mjs Metallvarefabrikk.pdf
15.05.13
18:14
METALLVAREFABRIKK AS
NCE.indd 15
1/22/14 11:02 AM
A real-time requirement
for leak detection
By Elaine Maslin
need for higher standards and capabilities in environmental monitoring,

especially real-time leak detection, is
being driven by regulatory changes and
moves by the industry into more environmentally sensitive areas, such as the
arctic.
In Norway, remote monitoring technologies have been highlighted as a specific
need, following the identification of
shortcomings in leak monitoring on the
Norwegian Continental Shelf by the countrys authorities.
Norways Climate and Pollution
Agency (KLIF), now the Miljdirektoratet
Norwegian Environment Agency, already
sets out a requirement for operators to
detect acute pollution as soon as possible.
Last year, Norwegian regulators set out
new rules, making leak detection mandatory in the countrys waters.
Norwegian firms have been preparing for the changes, with an emphasis on
integrated real-time monitoring.
Kongsberg Oil & Gas Technologies is
leading a project with Kongsberg Maritime
Subsea, DNV GL, IBM, and Statoil on
an integrated environmental monitoring (IEM) system, which can operate
real-time.
Statoil says it currently uses several
environmental monitoring (EM)

methods at its installations. It
would like a solution, which it
says is currently not available on
the market, which integrates and
enables physical, biological and
chemical data to be measured
during actual operations.
An ever-increasing share of
our production takes place subsea,
in areas located far away from other
Bergen-based Biota Guard AS has
been developing a system using live
mussels, with an array of other sensors, to provide an integrated leak
detection system, with real-time availability of data, analyzed by complex
algorithms to avoid false alarms, and
to monitor long term trends.
Naxys AS, acquired by GE Oil & Gas
Measurement & Control business
last year, has developed acoustic and
electronic leak detection technology,
which can be used in combination.
Trondheim-based Trollhetta AS has
developed a leak detection system
based on analysis of video and images
from subsea cameras. Earlier last
year (2013), DNV held a workshop
with a view to launching a joint industry project on leak detection.
Photo courtesy of
Mark Johnson
2011 rigmover.com
infrastructure such
as the far north. The
potential for EM as
part of our day-today operations is
considerable. EM
will also make it
possible to shut
down production
or cease construction activity during
Arild Brevik, business environmentally
development manager,
sensitive periods,
underwater monitorsays Statoil R&D
ing and control, in
head Karl Johnny
Kongsberg Maritimes
Hersvik.
Subsea Division
Arild Brevik,
business development manager, underwater monitoring and control, in Kongsberg
Maritimes Subsea Division, says: Realtime access to data is a basis for online
processing and fast response. Real-time
is the key. Other solutions that have been
in the market place have been offlineyou
have to recover the system to read out the
data. Now it is real-time systems that are
essential.
As well as the IEM project, Kongsberg
has been working on a number of R&D
projects relating to environmental
monitoring and leak detection. In summer
2013, it finished sea trials, in Trondheim,
16 NCE Subsea
NCE.indd 16
2014
1/22/14 10:12 AM
for a project called CLAM. Its ALDOG,

vessels, for the purpose of leak detection.
started by Statoil, looked as subsea gas
A part of the IEM project has been a
methane leak detection.
challenge to develop a system for moniKongsberg Maritime recently boosted
toring the effect of drilling operations,
its expertise in the area, buying German
including what happens to drill cuttings,
subsea engineering services firm Embient. in order to protect cold water corals in the
The Hamburg-based firm, founded in
North Sea.
2010, focuses on integrating subsea
The system integrates a number of
technologies into complete packages and
measurements, including current, and the
solutions.
amount of drill cuttings produced, so that
In particular, it looks at underwater
operations can be tailored to protect the
inspection and monitoring, and subsea
corals by predicting where drill cuttings
leak detection, including acoustic leak
would fall, and so potentially redirecting
detection. Kongsberg Maritime is agreed
them. Tests have been carried out off
to work with Germanys CONTROS
Horten Pier, at Kongsbergs subsea premSystems & Solutions, which develops,
ises, Norway.
produces and markets underwater sensor
The project involved integrated sensor
systems, to detect dissolved gasses such
landers. There is a higher interest now in
as hydrocarbons, CO2 and oxygen, as well
integrated sensor landers, says Brevik.
as pH.
There is a case for the integration of
In the IEM project with Statoil, the aim is
different sensors, and integration of data
to develop a real-time integrated environfrom different sensors. Monitoring of drill
mental monitoring concept, by building on
cuttings is a good example of this.
current technologies and developing new
Statoil R&D head Karl Johnny Hersvik
subsea and topside data technology.
says making environmental monitoring an
Current practice involves point samples
integral part of daily production would be
of selected physical/chemical and biologia big step forward.
cal parameters, including sediments, the
If we succeed in taking environmental
water column, soil and ground water, as
monitoring from being a separate task to
well as remote sensing, follow-up after
spills, and visual surveys.
Real-time monitoring involves four main
areas: sensor technology for acquisition of
data; communication infrastructure; data
Kongsberg Maritimes Seaglider.
analysis; and sensor carriers, says Brevik.
Image courtesy of Kongsberg Maritime.
Kongsberg already operates in most of
these areas, with a range of its own sensors, including hydro acoustic, ultrasound,
hydrophone. It is also using third party
sensors.
The key is to find the right sensors
for various applications, says Brevik.
Hydroacoustic sensors will detect gas
in bubble shape over distances of several
hundred meters, while hydrocarbon
snffers and point sensors will verify and
classify.
Kongsberg has existing wireless technology
and communication
transponders, like
cNODE. For sensor carriers, Kongsberg also
uses cNODE, or Landers
(integrated sensor units),
as well as mobile sensor
units, like AUVs, like
the recently introduced
Seaglider, intrument
Kongsberg Maritimes cNODE. Image courtesy of Kongsberg Maritime.
ROVs, and also surface
become an integrated part of daily production, we will achieve even safer operations and reduced costs, he says. This
will represent a quantum leap for offshore
environmental monitoring.
A Kongsberg Maritime subsea lander.
Photo courtesy of Kongsberg Maritime.
NCE Subsea 17
NCE.indd 17
1/20/14 7:52 PM
World Class Cluster

By Heidi Sklevik,
branding manager, NCE Subsea
orwegian Centre of Expertise Subsea

(NCE Subsea) has the ambition to
be a facilitator for the Norwegian subsea
industry and support its status as a global
subsea-hub and
a world-class
cluster.
In 2013, NCE
Subsea was
awarded Gold
Label of Cluster
Management
Excellence. This is a major achievement
and an international acknowledgement of
the work performed by the cluster facilitator, since 2006. The award sums up
thoroughly-planned and executed efforts
over many years. Through long-term
commitment from cluster partners and
members, as well as a team of cluster and
subsea professionals, we have provided
substantial results contributing to innovation and value creation for the cluster.
The results in NCE Subsea have caught
attention internationally. The state government of Rio de Janeiro turned to NCE

Subsea for input and support in the formation of a local subsea cluster. According
to an agreement with the Secretariat of
Economic Development, Energy, Industry
and Services (SEDEIS), NCE Subsea is to
assist the state
government in
the modeling
and managing of the Rio
de Janeiro
subsea cluster.
When the state
government asked for our assistance, it is
because they see what we have accomplished in Norway and that they have
something to learn both in the development of a cluster and as a facilitator in the
creation of new partnerships.
NCE Subsea have been working closely
with the supply industry for several years
to enable innovation, better technological
solutions, and offer a better understanding
of the market. We have gained a lot of experience and are happy to pass this on.
NCE Subsea is an initiative by the

subsea industry for the strengthening
and internationalization of business,
R&D and education. It brings together
and promotes the Norwegian subsea
industry, which constitutes a world
leading environment for subsea
technology.
Organizations established in
Norway that provide products or services in or to the subsea industry, or
aim to do so, can be a member in NCE
Subsea. Partnership is to awarded
R&D and educational institutions,
authorities, and companies, considered particularly important for the
development of the subsea industry.
The objective of NCE Subsea is to
promote innovation, increase international involvement and improve the
capacity, competitiveness and value
creation of individual players within
the cluster and for the cluster as a
whole.
In 2006, the cluster was appointed
Norwegian Centre of Expertise by
the Norwegian government. The
NCE program is owned by Innovation
Norway, the Industrial Development
Corporation of Norway (SIVA) and the
Research Council of Norway.
A memorandum of understanding was signed by Julio Bueno, secretary of economic development in the state of Rio de Janeiro,
and Trond Olsen, former CEO of NCE Subsea, at the headquarters of SEDEIS, in September, 2013. Sub-secretary Marcelo Vertis
(left) and the Norwegian Consul General in Rio de Janeiro, Helle Klem, were also present.
18 NCE Subsea
NCE.indd 18
2014
1/20/14 7:53 PM
Solving your
innovation needs!
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NCE.indd 19
1/20/14 7:53 PM
Siemens Subsea Power
Grid (middle), Subsea
Distribution Unit (in
front of Power Grid),
Subsea Connector
(middle), Anguila HighPower Changeover
Switch and Anguila
Cobra Head (left,
X-mas tree).
Image courtesy of Siemens AG
Powering the future

Subsea processing is growing - and so are requirements for more power on
the seabed. Elaine Maslin takes a look.
key component of the subsea production system is power supply, to provide electricity to the pumps and compressors of the seabed factory of the future.
Currently, power is supply through
single cables from the power source for
each power consumer, i.e. pump or compressor. But work is underway to develop
a subsea electrical power distribution
system, which would use one power cable.
This is a powerful incentive when cables
signify a large proportion of the cost of
subsea processing systems.
Statoil estimates, in a case with eight
consumers (pumps or compressors) and
a distance of 200km from infrastructure,
an electrical power distribution solution
would reduce capital expenditures by
more than US$500 million.
The technology would also enable the
transmission of electrical power over long
distanceskey for the development of
remote fields located far from infrastructure, including arctic areas.
Jan Erik Lystad, an engineer with
Siemens, Trondheim, says: Although
conditions on the ocean floor are extreme,
they are also stable. Temperatures stay
at around 4C and there are no storms or
icebergs. This makes deep-sea facilities

much less prone to faults and more costefficient than conventional systems.
A number of projects are ongoing to create deepwater electrical power distribution.
At a research center in Bratsbergveiein,
near Trondheim, Siemens is developing a
subsea power system.
The center has been testing transistors,
connectors, and other components for up
to six months at up to 460 bar (the pressure at 4600m) during continuous operation. To simulate aging, the temperature is
kept at 95 degrees C.
The center has so far completed a deepsea transformer and a 35-ton switching
station, both of which have been combined
into platforms covered with zinc plates, to
protect them from salt water corrosion,
and dipped in Trondheim harbor.
They are now working to complete a frequency converter, which ensures that oil
pumps or gas compressors are supplied
with the right operating voltage. Once
complete, all three components will be
assembled into a single network, weighing
about 100-ton, for a final test.
In 2012, DNV, in Hvik, unveiled its
OPera concept. OPera is a floating power
A Siemens transformer that has

passed its shallow water test.
Before that, its components
were tested in pressure vessels.
Photos courtesy of Siemens AG.
hub and electrical distribution system,

which could supply power to a network
of offshore installations. It would have a
700MW power plant, recovering exhaust
heat from seven gas turbines, to drive a
second cycle of three steam turbines, with
both cycles spinning electrical generators.
Transformers step up the voltage before
the power is distributed, using 132 kV AC
power. It could be mounted on a semisubmersible platform.
Statoil, with a number of other oil companies, and ABB have entered an agreement to develop subsea electrical power
transmission, distribution, and power conversion systems for 3000m water depth
and over long distances.
The total cost for the program, which
has a duration of five years, is US$100 million, including ABB funding.
The challenge is the distribution of AC
power at longer distances, says Marco
Gabelloni, senior engineer, Aker Solutions.
There are some limitations in the distance
you can transmit with AC power, without
having stability issues. sgard is a short
distance, 40km. Ormen Lange is longer,
driving the need for a different power distribution system. The Ormen Lange pilot has a
subsea variable speed drive, because of this
longer distance.
The challenge with a subsea VSD is you
have quite a big and complex electronic
system on the seabed, posing challenges in
terms of access to this system, in case an
intervention is needed. This is an area where
the industry is looking for a simpler system.
A longer term aim is moving to DC
power transmission.
Control systems, for process and
power, will also pose a challenge to the
industry as it goes into deeper waters.
The challenge is with installation, and
the requirement to have intervention, and
retrieval, of these modules in deeper and
deeper waters, says Gaballoni.
20 NCE Subsea
NCE.indd 20
2014
1/22/14 10:54 AM
A fuel cell future

Multi-megawatt fuel cells could provide
power to future subsea factories.
n NCE Subsea-funded study by

Christian Michelsen Research (CMR),
in cooperation with Inventas AS, sets out
a new concept, in which locally available
natural gas could be used to produce
electricity through using fuel cells.
The CMR Subsea Fuel Cell Power Plant
will provide electrical power to subsea
pumps, electrical submersible pumps,
and subsea gas compressors. It would be
able to produce 12MW of power, within a
subsea system, removing the requirement
for expensive, long-distance cabling, and
providing a safe and reliable source of
power generation.
The concept has been created as a
local power solution for future subsea
factoriesseabed developments comprising process plant, including subsea
pumping and gas compression, and
enabling remote-controlled transport of
oil and gas. Both subsea pumping and gas
compression improve oil and gas reourse
utilization, through higher recovery rates,
reduced production costs, and enabling

production from deep water, on longer
step-outs, and in harsher environments.
A key element of the subsea factory is
the power supply. Cables are a major cost
driver for subsea processing systemsand
the longer and more powerful the cable,
the more it will cost, says Bernt Skeie,
CEO Prototech, part of CMR. If power
could be produced locally, cable cost
would significantly reduce. In a factory
with eight pumps, or compressors, and a
200km step-out distance, local power generation would reduce capital expenditure
by more than US$500 million.
CMRs fuel cell power plant was developed using the companys over 20 years
experience in fuel cell development and
design, amd oil and gas experience. Fuel
cell technology has made great strides in
recent years, and plants with a capacity of
up to 30MW are already installed on land.
Fuel cells convert chemical energy from
fuel into electricity, through a chemical reaction with oxygen or another oxidizing agent,
says Vegard Laukhammer, sales and marketing manager, Prototech. Hydrogen is the
most common fuel, but hydrocarbons such
as natural gas, and alcohols like methanol,
are sometimes
used. Fuel cells are
different from batteries in
CMRs
that they require a constant
12MW concept
template.
source of fuel, and oxygen/air to
sustain the chemical reaction; however, fuel
cells can produce electricity continually for
as long as these inputs are supplied.
CMRs subsea fuel cell power plant will
be based on commercially available fuel
cell modules stacked together to produce
the necessary power output. A 12MW
power plant will comprise 2MW replaceable fuel cell modules, fixed to a frame,
consisting of all necessary balance of
plant components.
Natural gas from the reservoir and oxygen piped from the surface will be fed into
the fuel cells to create electricity, which is
then sent via cable to a power distribution
unit. CO2 produced in the process would
be stored or brought to the surface. It
will be protected by a traditional subsea
structure, and designed for easy access,
for swapping out modules.
By introducing a subsea fuel cell power
plant in the subsea field, operators will
be able to eliminate the need for long
distance cabling, adds Skeie.
WORLDWIDE LIFTING,
DRILLING AND
SUBSEA SOLUTIONS
www.huismanequipment.com
is copyright
protected
and provided
use only - not for reproduction
or retransmission.
CRANES Content
/ PIPELAY
/ DRILLING
/ WINCH
SYSTEMSfor/ personal
HEAVE COMPENSATION
/ NEW DESIGNS
/ SPECIAL PROJECTS
NCE subsea advert - 212.72 x 142.875.indd 1

NCE.indd 21
14-1-2014 10:49:11
1/20/14 8:13 PM
Scantrol focusing
on AHC in Asia
Norwegian control system specialist Scantrol is no stranger to

international growth. The companys current focus is on the Asian market.
Marketing coordinator Anette Isabella Bergaas tells us more.
Q. Scantrol has experienced great
international success in recent
years. How do you explain this?
Anette: The key to our success is that we supply standardized, proven and user-friendly
technology. So far, 1035 vessels
worldwide are deployed with
Scantrol systems. We have a
dedicated team at our head office
in Bergen but our main operations
are international. Over a long period of
time, we have established know-how and
an international network of partners on
all continents, accessible for customers
in need of service for their products. Our
strategy is that, after training, our customers will be able to do most of the support
on the Scantrol systems themselves.
Q. Asia has become an important
market for you. Tell us more about your
strategy there.
A: In recent years Singapore has been
an important market for us, where we
have now established a solid position with
the Scantrol Active Heave Compensation
(AHC) System. One example is Fugro
Subsea Technologies, who has chosen
Scantrol as AHC partner

for its launch and recovery systems (LARS).
Their main reason
for investing in
AHC technology is
to increase operational time for the
ROV support fleet.
In addition, AHC
technology can
reduce the reliance
Marketing
on ROV piloting
coordinator Anette
skills, required for
Isabella Bergaas
certain subsea
operations.
In addition to fitting AHC systems
on LARS systems, Scantrol is also
working on a number of crane
projects. One interesting project
uses fiber rope, instead of steel
wire, for subsea operations.
The crane takes 4000m of fiber
rope and will be in operation
onboard a vessel owned by one
of the main subsea contractors.
This is a very interesting project,
since the fiber rope can result in more
A team at Scantrols head office
in Bergen works to develop new
products, including Deep Vision, an
underwater camera system that can
identify and measure objects.
efficient subsea operations on even

deeper water.
Q. Tell us more about Scantrol AHC?
A: Scantrol AHC is a control system for
winches and cranes used for efficient subsea operations. The control system makes
it possible to filter away vessel motion that
would otherwise have been transferred
to the load. The system facilitates safe
and efficient operation even in extreme
weather conditions. The benefits are
reduced operational time and costs.
Q. How about China?
A: We work closely with our Chinese
sales and service agent, Powertech, to be
present in an important growing market.
China is investing heavily in technology, in
order to develop the search for petroleum
in the Far East. Their focus on developing an offshore fleet is attracting Chinese
crane manufacturers, and all of the
offshore vessels will be built in China. AHC
functions will be specified for the equipment onboard many of them. Equipment
built by the crane manufacturers is to be used on the
Chinese fleet, and will
not be exported. The
value of such a fleet
can become very
beneficial for China
in the future.
Q: What are
your future plans
for keeping up
your international
success?
Technical
Darren
manager Darren
HammerslandHammersland-White
White, technical
manager at Scantrol: Deep Vision is one
of our most exciting projects, an underwater camera system that can identify and
measure objects. The system has been
developed for marine research purposes
and has been tested in cooperation with the
Institute of Marine Research in Norway.
Scantrols AHC system as part of a launch

and recovery system.
22 NCE Subsea
NCE.indd 22
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1/20/14 8:14 PM
Cladding operations using

Inconel alloy 625 in NLI
Subseas cladding hub.
Fabricating
the subsea factory
NLI Subsea launched last year and the new business unit is
looking toward global growth. Elaine Maslin reports.
tatoil gives the following statement to

assembly and testing, with some
the subsea industry: We are taking
engineering design work undertaken by
subsea longer, deeper and colder. Through sister company NLI Subsea Engineering.
innovative thinking and collaboration with
The companys roots date back to parpartners and suppliers, we aim to develop
ent firm NLIs launch in a small mechanical
the elements required for a subsea factory workshop in Mjndalen, Norway, in 1946.
by 2020.
The firm starting working on subsea projThe statement has not been missed
ects in the early 1980s, having worked on
by NLI Subsea. All main operators, like
topsides facilities, for companies including
Statoil, predict a higher demand for
Statoil.
services below the surface than above the
Since then, the company has had delivsurface, when it comes to future oil and
eries to subsea system companies, such
gas exploration, production and processas FMC Technologies, GE Oil & Gas and
ing, says Erik Olsson, business developAker Subsea, and installation companies
ment manager for NLI
Subsea.
Growth, internationally, as well as
in Norway, is in NLI
Subseas sights, after
the division was spunout of its parent company NLI in 2012, and
a period of consolidation in 2013-14.
NLI Subsea specializes in the process of
manufacturing subsea
structures, connection
systems, tools, and
valves etc., through
expertize in welding,
cladding, machining,
NLI Subseas assembly connection system.
surface treatment,
like Technip, Subsea 7 and EMAS Norway

and internationally, with projects ranging from manifolds to tools, including NLI
Subseas own products, such as valves,
stabs, receptacles, and jumpers.
The last five years, in particular, has
seen significant expansion and diversification for the business.
Early in 2013, recognizing growth in the
market, NLI split into two companies, NLI
Solutions and NLI Subsea. NLI Subsea has
six subsidiaries, delivering engineering,
products and fabrication services across
six sites in Norway, and employing about
370 people, with turnover of NOK 650
million in 2013.
The business has also
shifted focus from fabrication of large subsea
structures, like large
scale templates and
manifolds, to work
on smaller/medium
size structures and
complex systems,
like connection
systems, and
smaller, high qualErik Olsson,
ity subsea prodbusiness
ucts, like stabs and
development
valves.
manager, NLI Subsea
The future will
see NLI Subsea continue to improve its
fabrication services, comprising advanced
machining, welding, assembly and test
of complex subsea units and structures,
says Olsson.
In Norway we need to focus on what
areas we still are competitive within, he
says. Pure large scale steel deliveries
are hard to compete cost effective
from Norway, but smaller, complex
structures with high demands to
quality and expertise still is.
Multibore machining at NLI.
NCE Subsea 23
NCE.indd 23
1/20/14 8:17 PM
Siemens Subsea Power Grid:

Enabling large-scale subsea processing
Powering installations on the seabed down to 3,000 meters and more
www.siemens.com /energy/subsea
The future of oil and gas recovery involves accessing

increasingly complex reserves. Operators are moving into deep
and ultra-deep waters, expanding their oil and gas production
into remote regions.
Siemens is helping to make these field developments technologically
and economically possible with an extensive portfolio of subsea
products and systems, as well as with exemplary service and
support. Covering everything from connectors and sensors to
topside and onshore power supply, in-field subsea power
distribution, control, surveillance and processing technologies,
we enable enhanced recovery in the most challenging locations.
The Siemens Subsea Power Grid reliably supplies and distributes

power to numerous consumers across the seabed and downhole
electrical submersible pumping systems (ESPs) from an onshore
power plant or offshore platform.
Currently undergoing the detail design and test phase, it incorporates
proven high-quality Siemens industrial components, including
transformers, switchgear and variable-speed drives. All power
components can be installed separately or on a common structure
located on the seabed. As such, it marks another milestone in
powering large-scale seabed processing facilities down to
3,000 meters and more.
Answers for energy.

NCE.indd 24
1/20/14 8:18 PM
Shedding light
on offshore operations
Sea-Hawk Navigation has taken the traditional
radar system to new levelsand environments. Elaine Maslin explains.
orways subsea industry brings with

it an innovative supply chain and
support services.
One such company, Sea-Hawk Navigation, helps those operating vessels and
submerged equipment control and manage
what happens on the surface, as well as
beneath the wavesa crucial factor when
operating in iceberg-infested waters.
Founded in 2000, and based in Bergen,
the company developed the Sea-Hawk
Rader to give detailed coverage of ice,
and other small targets, as well as oil spill
detection.
Paul Herfjord, senior project engineer at
Sea-Hawk, said the companys radar system is based on its patented Polarimetric
Radar. It is an IMO-approved navigation
radar, comprising two radars in one; two
X Band Transceivers and two antennas, in
two different polarizations.
The two Antennas are mounted back
to back, and rotate around a dual rotating
joint, he says. The signals from the two
radars are combined and processed to
create a single image much like an aerial
photograph.
The company, which employs about
A so-called growler,
icebergs which protrude
less than 1m above the
surface, but can still create
significant issues for those
operating offshore.
Photo courtesy of Mark Johnson
2011 rigmover.com
18 people, saw a need for better radar

systems, explains Herfjord. Sea-Hawk
goes back to the 1980s, when officers in
the Royal Norwegian Navy discussed the
development of radar systems, which did
not give improved performance over the
years, he says.
All civilian radar companies were competing on the lowest price. So the idea to
move towards higher quality, rather than
low price, was lit. A few officers started
with development work, and, based on the
idea that two radars are better than one,
they developed a system, the Polarimetric
Radar, which is now patented.
Seismic acquisition vessel companies
were first to use the system, and in 2012, it
was successfully used on a major seismic
acquisition campaign in the Arctic.
Polarcus deployed two ICE-1A class
vessels, and one ICE-1A* class vessel, to
complete two 3D surveys offshore western
Greenland. It was then the worlds largest
arctic seismic exploration program, covering Baffin Bay, about 600km north of the
Arctic Circle.
The 12-week summer campaign
involved nine support vessels, operating
in groups, with the seismic vessels, during the operation. All 12 vessels were
equipped with enhanced Sea-Hawk X9
ice-detection radars to detect ice. These
were operated by two ice navigators on
each of the vessels.
As part of an ice management plan,
data from numerous remote information
sources was also integrated.
Their use resulted in detection of numerous growlers (icebergs rising 1m out of
the water, and 5m-long) in due time, and
contact was avoided. Zero recordable incidents were experienced, with no significant
harm to personnel, marine life, vessels or
equipment, and overall the project recorded
a low technical downtime, at less than 3%.
Others using the radar include those
wanting to detect pirates in small fast-going
crafts, inflatable canoes and small boats,
which the system is able to detect, leading
to demand offshore east and west Africa.
Sea-Hawks Polarimetric technology can
also detect oil slicks on the seas surface.
Development work on the radar systems
continues, with Sea-Hawk further enabling
their integration with other ship equipment,
such as cameras or light sources, where
radar is used to direct a camera or light
towards an object found by the radar.
Sea-Hawk also enables vessel system
integration, where operators can monitor various levels of information, such as
radar, chart, satellite, sailing routes, etc., on
top of each other, on one screen. This was
already achieved with the ION Narwhal Ice
Management system, for example.
Suez Canal at Port Said waiting point,

visualized by Sea-Hawks Polarimetric
Radar.
NCE Subsea 25
NCE.indd 25
1/20/14 8:18 PM
Subsea metering meets challenges
ubsea meters in the North Sea are

facing increasingly demanding
operator requirements in two key areas
accuracy and design.
First, its essential that subsea meters
measure the flow rates of oil, water and
gas, and characterize the most complex of
flow regimes in all reservoir conditions and
no matter the geological complexity.
With many ageing North Sea wells producing over a wider range of process conditions with more liquid and water present,
meter accuracy is vital in handling these
changing process conditions. Factors
such as changing salinity and composition
need to be automatically compensated
for. Subsea meters that are operationally effective and can maintain accuracy
over the entire GVF (gas volume fraction)
range are key to preventing any lost profit
opportunities.
Second, there is the complexity of
subsea field equipment, with more complicated and crowded subsea equipment
configurations and manifolds. Operators
are looking for subsea meters that are sufficiently flexible, light and compact to fit
around existing infrastructure.
So how are subsea meters meeting
these challenges?
Roxar subsea metering equipment

undergoing a technical inspection.
The North Sea Ormen Lange development is one of the North Seas highest
profile fields and comes with challenges,
including a 120km pipeline, no offshore
platforms, sub-zero seabed conditions, and
the need for subsea multiphase meters to

fit into the existing subsea control module.
Here, Emerson deployed Roxar Subsea
Wetgas Meters for daily water production monitoring and gas measurement.
The meters compact design and extreme
water detection sensitivity (a detection
accuracy of nine gallons of water an hour
in a 100MM cu ft/d gas well) have been
critical to the fields development concept
and daily monitoring.
Emerson is rolling out a number of new
developments to its subsea metering
capabilities this year. This includes new
technology platforms for more stable
and accurate measurements; a salinity measurement system that enables
absolute measurements of the salinity
of produced water; and a new and more
robust gamma densitometer system, that
improves measurement performance and
enables true redundancy. The latest Roxar
subsea meter will be more compact than
its predecessor, allowing it to be installed
on individual wells and in previously inaccessible locations.
Current trends in subsea production
are driving major changes in subsea field
instrumentation. Subsea meters are
meeting those challenges.
Subsea cluster attracts Huisman
orways subsea cluster attracted

investment from Dutch drilling, lifting
and subsea firm Huisman.
The firm has launched a new business,
Huisman Norge AS, based in Bergen, to
cover the Norwegian Continental Shelf.
The company will be offering pipe laying, for subsea developments, cranes, for
platforms, vessels, rigs, drilling solutions,
well intervention solutions, and plugging
and abandonment.
Regional director Geir Bjrkeli says:
Huisman has seen the large growth in
the subsea industry in recent years,

with operators looking to increase
recovery rates from subsea fields
through well intervention, slim
hole drilling, and inspection
maintenance and repair, all of
which will require technology
we can deliver.
We believe technology trends
in coming years will be new and
cost-effective solutions for subsea well
maintenance, and cost-effective solutions for extended reach drilling at the
Huisman has been working on arctic drilling solutions.
Jan Atle Andresen, is

business development
manager-drilling,
Huisman Norge AS
existing subsea
infrastructure.
Within the plugging and abandonment area, new,
smart and cost-effective
solutions are also required.
For Huisman Norge, 2014 will
see the firm grow its staffing to an estimated 5-10 people by the end of the year.
Huismans production is divided
between its facilities in The Netherlands,
China, and the Czech Republic. A new
production facility in Brazil should be
operational in 2014. Additional sales,
engineering, and service support offices
are in Australia, Brazil, Norway, Slovakia,
Singapore, and the US.
26 NCE Subsea
NCE.indd 26
2014
1/20/14 8:19 PM
Integrated subsea systems

for enhanced recovery
Our customers get higher recovery rates and longer well

life no matter how extreme the conditions or conguration
challenges. From new eld design and installation to
mature eld intervention and enhancement, GE Oil & Gas
has all the equipment, technology and expertise needed to
safely and reliably maximize long-term resource value and
overall efciency.
Whether its advanced maintenance, upgrades or new
technology injections, everything we do is aimed at
delivering added value and we have proven capabilities
in doing so.
GE Works.
Comprehensive lifecycle support

Installation & commissioning
Operations & maintenance
Intervention & enhancement
Life-of-eld management
Remote monitoring & optimization
Equipment and integrated systems
Subsea trees
Subsea controls
Manifolds & connection systems
Subsea power & processing
Subsea wellhead systems
Specialty connectors & pipe
Floating production systems
Wellstream exible pipe
geoilandgas.com
NCE.indd 27
GE_SS_OE_Recovery-011714.indd 1
1/20/14 8:21 PM
14-01-17 4:01 PM
Making sure nothing

slows you down
World-class service engineers to maintain your
subsea production and processing system
Once your subsea production system is installed and
fully operational, Aker Solutions offers subsea lifecycle
services to continually ne-tune its performance and
reliability because a smooth start-up and uninterrupted
production keep operators ahead.
Whether you need a spare part or a new supply chain,

our highly trained teams are on hand to meet your ongoing
subsea service requirements with rapid mobilisation,
specialist equipment and expert engineering.
From frontiers to mature elds we are driving down the
costs and risks of subsea production, for the long run.
www.akersolutions.com/subsea
NCE.indd 28
1/20/14 8:22 PM
Contracts
Sparrows Group
triple contract win
Three recent contract wins have

helped to boost the crane maintenance
and operations services supplied by
Sparrows in Asia Pacific. Deals with
existing clients Total and Premier Oil
as well as a winch refurbishment and
maintenance contract with ExxonMobil
ensured a strong finish to the year for
the crane and offshore lifting specialists.
Increasing well services activities have
HANDAL, SCOMI TO SUPPLY

OFFSHORE EQUIPMENT
Malaysian oilfield services company
Scomi Oiltools, a subsidiary of Scomi
Energy Services Bhd, has partnered
with integrated offshore crane services
provider and fabricator, Handal Resources Berhad for offshore equipment.
Scomi will supply a modular workover rig, offshore pedestal cranes, and
related operations, repair and maintenance services to oilfields in Africa and
the Middle East.
Under the memorandum of understanding signed, both parties will
formalize working arrangements in
relation to the proposed collaboration
within the next six months.
WISON WINS INDIAN FRU SUPPLY

Wison Offshore & Marine will supply
a barge-based floating LNG regasification unit (FRU), to be installed offshore
India, for New Jersey-based Vessel
Gasification Solutions (VGS).

Under the agreement, Wison will be
responsible for the turnkey engineering,
procurement, construction, installation and commissioning of the unit and
will lead the project from its Shanghai
operational center with construction to
be performed at Wisons wholly-owned
fabrication facility in Nantong, China.
The FRU, which will be owned by
VGS, will consist of a newbuild, nonpropelled barge equipped to perform
regasification and provide a maximum
of 1000MMscf/d of natural gas.
SCOMI SCORES
PETRONAS CONTRACTS
Malaysias Scomi confi rmed that it
secured two three-year contracts from
from Petronas Carigali Myanmar Inc.
(PCMI) and Petronas Carigali (Hong
Kong) Ltd. for drilling fluids, solid control, well bore clean-out, drilling waste
management equipment, materials and
led to an existing contract with Total

being doubled to include the provision
of a second modular EC-20 crane rental.
The deal includes crane operators as
well as onshore and offshore support. A
three-yr contract has been agreed with
Premier Oil to cover crane maintenance
and inspections on all Premier Oil
Indonesia assets.
The work with ExxonMobil will see
Sparrows provide inspection and
refurbishment on the NSO platform in
the Aceh province, Indonesia.
Rendering of Wisons Indian FRU

services.
The contracts are worth RM90 million (US$27.4 million), bringing Scomis
oilfield services order book up to RM5.1
billion (US$1.5 billion). Scomi targets
July 2014 to commence work with PCMI.
EMAS GETS FPSO DECOM CONTRACT

Singapore-based EMAS AMC Subsea
Services division announced a new
contract to decommission and tow an
FPSO in Asia.
This contract is part of US$80 million
in new subsea agreements.
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AOG | January February 2014
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7/17/13 10:26 AM
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Jee sends subsea

tutors to South Korea
Activity
Jee Ltd. signed a MOA with KOSHIPA in

November 2013 for the provision of its
courses, due to begin in 2014. Under the
agreement, Jee will send its UK-based
tutors to South Korea to deliver its
subsea courses to KOSHIPAs member
companies, which include Hyundai,
Samsung and Daewoo. Our tutors will
be delivering training to strengthen
KOSHIPAs members subsea skills base,
and we look forward to learning more
about the processes and development
needs of KOSHIPA and its member organizations, Jees head of courses, Jenny
Matthew said. The vice chairman, Young
Ju Suh (pictured right), represented
KOSHIPA alongside Sangduk Bae and
in Tonbridge. In attendance on behalf of
Dong-Hyuk Rhee to sign the agreement, Jee were: founder and managing direcwhich took place at Jees headquarters
tor, Trevor Jee; Jenny Matthew; business
GE expands
Chinese business
GE announced it has spent US$250
million in new Chinese projects over
the last six years. In 2013, GEs Power
Conversion business saw the opening of
a new 10,000 sq m production plant in
Shanghai that will employ nearly 300
people. GE is set to open an innovation
center of excellence for the metals industry in Wuhan this January. The facility will focus on metals automation,
including hot rolling mill, cold rolling
mill and processing lines. We are here
in China, for China, for the long-term
development of our company, Joe
Mastrangelo, GEs Power Conversion
business CEO said. By working closely
as a local technology driver, we build
the systems and solutions that will contribute to the region, increasing output
while using significantly less energy.
The potential for making energy efficiency gains in China and for Chinese
companies is enormous, and our partnership is only just beginning.
Mitsubishi, Hitachi form JV

Mitsubishi Heavy Industries Ltd. (MHI)
and Hitachi Ltd. agreed to collaborate
on the distributed gas engine power
generation systems business in China.
MHI will transfer to Hitachi 35% of

its shareholding in Mitsubishi Heavy
Industries Engine System (Shenzhen)
Co. Ltd., which is wholly owned by the
MHI Group in China. Mitsubishi Heavy
Industries Engine System (Shenzhen)
will then be renamed and converted
into a joint venture company by yearend
2014. Plans call for the JV to be headquartered in Shenzhen, with a branch
in Shanghai, with about 60 employees.
The JV will begin carrying out the
distributed gas engine power generation
system business through collaboration
with Hitachi.
Inpex opens Singapore hub

Inpex Corp. subsidiary Inpex Trading
Ltd. created INPEX Energy Trading
Singapore Pte Ltd., and opened a base in
Singapore for the purpose of enhancing
its marketing activities and shipping
coordination function for crude oil,
condensate and LNG. In anticipation
of further increased volumes of such
entitlement by developing the Ichthys
LNG Project, Prelude Project and other
projects, INPEX has decided to set up
a new office in Singapore, one of the
hubs for energy trading, to strengthen
INPEXs marketing activities in Asia
where energy demand is expected to
development manager, Jamie Burrows;

and head of technical excellence, Jonathan Franklin.
grow, to make shipping operation more

efficient and to enhance the capability of information-gathering on energy
market.
EV opens Perth base

UK-based downhole video technology
specialist EV announced the opening
of a new base in Perth. The company
established its new Australian facility
to aid local operations, as well as to
provide a regional presence for projects
in the area. Features include a custombuilt storage area for EV equipment, an
electronics maintenance area, lithium
battery storage area, System Integration Testing (SIT) area and designated
meeting areas. Bradley Parker, EV
Australasia manager said, We have
experienced an exceptionally high demand for our downhole video technology in Australia and surrounding areas
in recent months following successful contracts with global operators in
Australia, Papa New Guinea and New
Zealand. The Perth office currently
has three employees. EV, which splits
its headquarters between Norwich
and Aberdeen in the UK, has a team of
around 90 employees. EV said it plans
to introduce a drill pipe camera in the
upcoming months.
18 AOG | January February 2014 For reprints please contact the Publisher.
aogdigital.com
018_AOG0214_Activity.indd 18
1/30/14 3:55 PM
THE OFFSHORE
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Optimizing Operations
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Email: jlauletta@atcomedia.com
From the organizer of:

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FP-OffshoreAutomation_REVC.indd 11
1/21/14 7:53 AM
Spotlight
Power and automation technology group ABB named Chunyuan Gu head of its operations in China and North Asia, effective January. Gu replaces Claudio Facchin, who was
appointed executive committee member for the Power Systems division. Gu joined ABB
in 1989, and spent time within ABBs businesses in Europe and Asia. In 2006, ABB picked
to lead its global robotics R&D center in Shanghai. In 2012, he was appointed head of the
Discrete Automation and Motion division in North Asia. Gu holds an engineering degree
from Shanghai JiaoTong University in China, and a PhD in Engineering from the Royal
Institute of Technology in Stockholm, Sweden. He worked as a research fellow at the
Royal Institute of Technology before joining ABB. Gu is fluent in Swedish, English as well
as Mandarin Chinese.
Petrofac announced
that Andy Inglis
will step down as
chief executive of its
Integrated Energy
Services business in
February. Inglis
plans to join Dallasbased exploration firm Kosmos Energy
as its CEO and chairman, effective
March 1. Rob Jewkes, currently
managing director of
developments for
IES, will take over as
chief operating
officer of Petrofacs
IES business. Inglis
joined Petrofac in
January 2011, after
30 years with BP, most recently as CEO
of the British supermajors exploration
and production business. Inglis was an
executive director on the BP board
between 2007 and 2010. From 2004 to
2007, he was BP executive vice president
and deputy chief executive of E&P, with
responsibility for BPs growth areas,
including Azerbaijan, Angola, Algeria,
Gulf of Mexico, Egypt, Trinidad, and the
Asia-Pacific region. He is a former
non-executive director of BAE Systems
plc and TNK-BP Ltd. Inglis holds a
masters in Engineering from Pembroke
College, Cambridge University. He is a
Chartered Mechanical Engineer, a fellow
of the Institution of Mechanical
Engineers, and a fellow of the Royal
Academy of Engineering.
20
Asia Pacific-focused,
North Sea-based
READ Cased Hole
appointed Roy
Martin chief
executive officer.
Martin will be
tasked with expanding the firms global reach into the
Middle East and Asia Pacific. Martins
career began in the North Sea in the
early 1980s. He holds a degree in
Mechanical Engineering from
Auckland University in New Zealand.
Martin went on to gain extensive
experience throughout Africa, the
Middle East and the Asia Pacific region.
Investment to support growth plans
from a consortium led by venture
capital firm Energy Ventures and
including Viking Energy is set to
accelerate READs expansion into the
international oil and gas arena.
Wood Group
Mustang named
John Etherington
general manager,
Malaysia, where he
will lead operations
and strategic
development in the
Asia Pacific region. Based in Kuala
Lumpur, Etherington will focus on an
expanding Wood Group Mustangs
presence in the offshore, onshore,
chemicals, oil sands, process plants,
industrial, and automation and control
markets. Etherington joins Wood Group

Mustang after 19 years with
WorleyParsons, most recently serving
as the companys chief operations
officer for its joint venture in Kuala
Lumpur, where he has resided for the
past 16 years. He holds a BS in instrumentation and control engineering
from the University of Teesside in the
UK, and is a chartered engineer with
the Institute of Electrical Engineers in
the UK.
ASCO Group chose
Jason Howe as
general manager
Northern Australia
for its local subsidiary ASCO
Australasia. Howe,
based in Perth, will have a major role
in the running of the new Darwin
Marine Supply Base. ASCO Australasia
is a participant in an innovative
public-private partnership with the
Northern Territory Government in the
creation of the Darwin Marine Supply
Base and has a 20-year management
contract to run the dedicated oil and
gas port at East Arm Wharf. Howe
comes to ASCO from Mermaid Marine
Australia Ltd., having served as the
supply base manager in Dampier,
Western Australia. He has more than
12 years of experience in supply base,
HR and safety management, including
more than six years with Mermaid
Marine.
aogdigital.com
020_AOG0214_Spotlight.indd 20
1/30/14 3:58 PM
WORLDWIDE COVERAGE
OF THE OFFSHORE
OIL & GAS INDUSTRY
Click Here to start / renew your FREE subscription to OE magazine
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and exclusive articles, follow us on:
JANUARY-1.indd 5
1/14/14 2:32 PM
Solutions
New Wrtsil X72 engine passes factory acceptance test
Wrtsil announced that its Wrtsil
X72 mid-bore, low-speed engine suc-
Tracerco launches
new subsea technology
Tracerco will introduce its new subsea
CT scanner, Discovery, at the Australasian Oil and Gas Exhibition in Perth in
February.
Delegates will view footage of Discovery in action and its ability to provide a
360, high-resolution scan of the condition of complex piping systems.
Discovery has the ability to inspect
a range of different, unpiggable piping
systems, including pipe-in-pipe and pipe
bundles, without the need to remove
pipe coatings and insulation or interrupt
production.
Tracercos technology was created in
cooperation with Statoil to develop detection technology with the primary goal of
use in flow assurance applications.
www.tracerco.com
22
cessfully passed the factory acceptance test carried out at South Koreas
Doosan Engine Co. Ltd.
factory, where the engines
are being produced under
license. By passing the
test, the engine fulfills the
design criteria for performance and functioning, and
has been accepted by the
customer and the Lloyds
Register of Shipping classification society.
The Wrtsil X72 features
the companys electronically time-controlled commonrail technology. Flexible fuel
injection and exhaust valve operation

offer fuel consumption reductions
with correspondingly lower levels
of exhaust emissions. The system
also permits stable running speeds
down to 12% of the nominal speed,
smokeless operation, and improved
control of emissions. The engine has
been designed to provide exceptional
reliability, extended key component
life, and has been optimized for lower
engine revolutions.
Wrtsil X72 is suited to a broad
range of ship types, including Capesize bulk carriers, Suezmax tankers,
and Feeder/Panamax container ships.
www.wartsila.com
Saab sends third tiger to Indonesia

Saab will send its third Seaeye Tiger
ROV to Singapores Seascape Surveys, a
subsidiary of Mermaid Maritime.

Seascape Surveys will deploy the
observation and inspection vehicle to it
operations in Indonesia, where it will
digitally inspect subsea jackets, platforms
and other structures. It will be working
on the long-term charter new-build Dynamic Positioning vessel Resolution.
The Tiger is able to maneuver inside
structures and cope with strong currents
and harsh conditions. It has a depth rating of 1000m. Sonars, cameras and tools
can be added as needed.
www.seaeye.com
Allspeeds nominates ROV

panel for innovation award
UK-based hydraulic equipment and
tools producer Allspeeds Ltd. nominated the Webtool HP690 intensifier panel
for the Subsea UK Innovation for Safety
Award.
The HP690 intensifier panel does not
allow high-pressure fluid to be locked
in during deepwater operations, even
in the case of ROV failure. Users are not
required to manually reverse the pressure
to ensure safety within the hydraulic
system.
Input pressure automatically compensates for depth through the ROVs own
HPU; as the ROV surfaces, the high-pressure side of the circuit also adjusts. The
panel was designed with a cross-drilled

manifold-style body, so there are fewer
hydraulic fittings (and potential leak
paths). Safety screens were installed on
the pressure intensifier ports to prevent
contamination seizing the intensifier.
www.allspeeds.co.uk
February 2014 For reprints please contact the Publisher.
aogdigital.com
AOG | January
022_AOG0214_Solutions.indd 22
1/30/14 4:17 PM
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JANUARY-1.indd 11
12/19/13 3:14 PM
Numerology
85%
2019
of worldwide contracts for deepwater drilling, engineering,

procurement, construction, installation, commissioning will come
from Malaysia, Indonesia, China, India, and Australia.
(Source: OTC Asia).
First expected LNG shipments leave BPs

US$12 billion Tangguh LNG facility (pictured) in
Indonesia. (Source: BP).
22,525ft
US$250 million
The deepest installation of Weatherfords

ZoneSelect system. See page 12.
The amount GE spent on new Chinese

projects since 2007.
See page 18.
70,000 boe
2867m
The total drilled depth of the Cua Lo-1 well off

Vietnam.
87.49MM tonnes
2035
See page 4.
The amount of LNG Japan

imported in 2013, up 2%
from 2012.
(Source: Ministry of Finance Japan)
The year that Chinas oil production is forecast to

hit 4.7MMb/d.
January/February 2014
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The expected daily production

peak for CNOOCs Golden Eagle
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See page 14.
Offshore Automation Forum

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Offshore Technology Conference Asia 2014
www.otcasia.org/go/aog ....................................................... 9
Deepwater Intervention Forum
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SPE Bookstore www.spe.org/go/book_store .................... 17
SPE Membership wwww.spe.org/join .................................. 8
Teledyne Oil & Gas www.teledyneoilandgas.com .............. 11
World Petroleum Congress www.world-petroleum.org .... 16
February 2014 For reprints please contact the Publisher.
aogdigital.com
AOG | January
024_AOG0214_Numerology_rev1.indd 24
2/4/14 12:45 PM
Organizer
emerging
forum
SAVE THE DATE

Emerging FPSO brings together industry
experts from around the globe with
real-world FPSO experience. Join these
thought-leaders as they discuss the
latest technological developments and
provide case histories on new techniques.
Interested in speaking?
Contact: Jennifer Granda Event Manager
Direct: 713.874.2202 | jgranda@atcomedia.com
Interested in sponsorship and exhibiting?
Contact: John Lauletta OE Events Sales
Direct: 713.874.2220
Fax: 713.523.2339
jlauletta@atcomedia.com
emergingfpso.com
FP-OffshoreAutomation_REVC.indd 14
1/21/14 8:02 AM
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Asian Oil and Gas-January-February 2014

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ASIAN OIL & GAS

January - February 2014

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