Asian Oil and Gas-January-February 2015

ASIAN OIL & GAS
January - February 2015
AOG
aogdigital.com
Demand in Asia
dictates project
economies are
viability Emerging
driving the future of oil
and gas production.
page 10
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For reprints please contact the Publisher.
OFC_AOG0215_cover.indd 1
2/3/15 11:20 AM
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GHOST - image by James P. Blair/National Geographic/Getty Images
WE
ARE
RAMPING
UP
Contents
REGIONAL UPDATES
4 Briefs
New discoveries, leases, and development plans.
SHIPYARDS
8 Deliveries abound
Shipyard news from China and Singapore.
GEOLOGY & GEOPHYSICS
9 Seismic roundup
2D/3D Seismic and airborne gravity surveys.
FEATURE
10 Demand in Asia dictates project viability

ABBs Will Leonard looks at how emerging economies are
10
driving the future of oil and gas production.
14 Service during sanction

Sarah Parker Musarra looks deeper into how western
sanctions are affecting the service companies that do
business offshore Russia, and the other avenues Russia is
pursuing for project fi nancing.
18 The value of good guidance for safe and

efficient operations
24
Chris Charman highlights IMCAs role on safety and injury

prevention in Asia Pacific.
20 Conversion work
Alan Thorpe gives a rundown of some of the current
floating production and storage unit conversions underway
in Singapore and in Malaysia.
GEOGRAPHICAL FOCUS
24 In Focus: Bangladesh & India

AOG staff profi les the oil and gas industries in Bangladesh
and India, and the challenges therein.
PRODUCTS & TECHNOLOGY
26 Solutions
New tools and software to improve performance,
production, and modeling.
COMPANY NEWS
27 Activity
DNV GL opens a new office in Nanjing and AOG
AOG
ASIA
PEOPLE
IL
N O
On the cover
January
2015
- February
al.com
aogdigit
Conference returns for a 2015 edition.
AS
& G
28 Spotlight
Bumi Armadas Hassan Basma, CEO and executive
director, steps down.
FACTS & FIGURES
30 Numerology
A capsule view of interesting industry statistics.
ia
d in As
Deman project ies are
econom of oil
dictates Emergingthe
future
viability driving duction.
pro
and gas
page 10
This month AOG features the

offshore subsea construction
vessel the Surf Supporter,
which is ungergoing modifications at Batamec, in Indonesia,
in advance of its contract
with Fugro off Australia.
Read more on page 20.
Photo by Alan Thorpe.
January February 2015 | AOG
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January
February 2015
AOG
ASIAN OIL & GAS

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REPRESENTATIVES
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NEARS HALFWAY MARK

According to the Chevrons 3Q report,
the Wheatstone mega project is 49% complete. Key activities include completion,
load out, transport and installation of the
steel gravity structure, the submerged
foundation of the Wheatstone processing
platform. The project is set for fi rst gas in
late 2016.
Located 12km west of Onslow on the
Pilbara coast of Western Australia, Wheatstone is a natural gas development consisting of two LNG trains with a combined
capacity of 8.9 MTPA plus a 200 TJ/d
domestic gas plant. The Wheatstone LNG
will be offloaded via a 1.2km loading jetty
for transport to international markets. The
domestic gas will be piped to the Western
Australian mainland.
CHEVRON, SK LNG
IN GORGON LNG CONTRACT

Chevrons Australian subsidiaries and
SK LNG Trading (SK) entered into a sales
and purchase agreement (SPA), in which
SK will receive 4.15 m illion-tonne of
liquefied natural gas (LNG) over a fiveyear period starting in 2017. According
to the terms, during the five years, more
than 75% of Chevrons equity LNG from
Gorgon will be committed to customers
in Asia.
United Kingdom
Mike Cramp
Tel: +44 (0) 1732 459683
mike@aladltd.co.uk
France/Spain
Paul Thornhill
Tel: +44 (0) 1732 459683
paul@aladltd.co.uk
North America
Rhonda Warren
Phone: +1 713-285-2200
rwarren@atcomedia.com
Publisher
QCLNG LOADS
Brion Palmer
Tel: (+1) 713 874 2216
bpalmer@atcomedia.com
Associate Publisher
Neil Levett
Tel: +44 (0) 1732 459683
neil@aladltd.co.uk
Regional Briefs
FIRST CARGO
BG Group loaded its first cargo of LNG
from the Queensland Curtis LNG (QCLNG)
on the Methane Rita Andrea, and is followed by the Methane Mickie Harper
transporting the second cargo of LNG.

The project will expand further with
the startup of the second train in the 3Q
2015. At plateau production, expected
during 2016, QCLNG will have an output
of around 8 million tonne of LNG a year.
The QCLNG facility is the worlds fi rst
coal seam gas to LNG project.
Bangladesh
SANTOS COMPLETES 2D SEISMIC
Operator Santos completed a 3146km 2D
seismic acquisition program in Block
SS-11, offshore Bangladesh, as part of a
2014 production sharing contract (PSC).
Utilizing Nordics Binh Minh 2 vessel,
the survey was conducted in the Bay of
Bengal over the Bengal Fan, about 200km
south of Chittagong.
The majority of the block lies in shallow waters of up to 200m. CGG Services
SA conducted the 22-day program.
The PSC over the block has an initial
five-year term, with an associated work
commitment of the acquisition and processing over 1800km of 2D seismic, 300sq
km of 3D seismic and the drilling of one
exploration well.
Brunei
SHELL UPS PLEXUS ORDERS
Plexus Holdings has received a US$2.25
million purchase orders from Brunei
Shell Petroleum (BSP) to supply both
high-pressure, high-temperature (HPHT)
and standard pressured wellhead systems and services for three additional
exploration wells under an existing fouryear contract, which runs to 2016.
Under the terms of the existing supply
agreement, Plexus agreed to supply both
February 2015 For reprints please contact the Publisher.
aogdigital.com
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HPHT and standard pressured wellhead

and mudline systems and services, using
the companys proprietary POS-GRIP
technology, for a multi-well exploration
program in Brunei.
China
GREEN DRAGON
PLANS 30-WELL CAMPAIGN

Green Dragon Gas is planning 30 new
LiFaBriC wells in the Shizhuang South
(GSS) block in Shanxi Province, China
with a January 2015 starting timeframe
using up to 10 existing GD75 rigs.
Greka Drilling, who previously completed a 10 well LiFaBriC program for
Green Dragon in 2014, has been awarded
the work order, valued at around US$45
million, under the evergreen master
drilling contract between the two companies. The new well sites are now under
preparation and rigs and manpower are
mobilizing.
Indonesia
KRISENERGY ACQUIRES
ONSHORE STAKE
KrisEnergys 41.67% interest acquisition, from Premier Oil Overseas, of the
onshore Block A Aceh production sharing contract (PSC) in Indonesia has been
approved by the government of Indonesia
and the provincial government of Aceh.
Block A Aceh, located onshore Sumatra in
the region of Aceh, covers 1803sq km and
contains several gas condensate discoveries including the Alur Rambong, Alur
Siwah and Julu Rayeu fields, which were
approved for development in 2007and
expected to achieve first gas in 2017.
According to KrisEnergy, the block
also contains the Matang gas discovery,
which requires further appraisal prior
to being developed via tie-back to the
initial facilities, and the high-CO2 Kuala
Langsa gas discovery.
Operator PT Medco E&P Malaka has
41.67% working interest in the Block A
Aceh PSC and Japex Block A Ltd. holds
the remaining interest.
coverage. The Sidewinder North is 14,726

acres and the Waiiti permit is 22,055
acres. Waiiti, located in the northern area
of the Taranaki basin, will allow TAG to
explore for both shallow Miocene oil and
deep Eocene condensate-rich gas.
The acquisition of the two permits
brings TAGs permits to 10 in the Taranaki basin.
Papua New Guinea

EXXONMOBIL
SIGNS PNG LNG MOU

ExxonMobil and the Papua New Guinea
(PNG) government signed a memorandum
of understanding (MOU) for the expansion
of the US$19 billion PNG LNG project.
Under the MOU, expansion plans for
the project include the award of a petroleum development license (PDL) and associated pipeline licenses for the Pnyang
gas field in PRL 3. Also, a portion of the
natural gas supply allocated for domestic
use will enable PNG LNG to provide up
to 25Mw of electrical power, or about
20% of Port Moresbys current generation
capacity, for an interim period while the
government addresses long-term power
generation options.
The PNG LNG project will supply up
to 20MMcf/d of domestic natural gas for
Russia
ARKUTUN-DAGI
PRODUCTION BEGINS
ExxonMobil began production from the
Arkutun-Dagi field the last of the three
fields to be developed for the Sakhalin-1
project.
The field, located off the northeast
coast of Sakhalin Island in the Russian
Far East, will bring total production at
Sakhalin-1 to more than 200,000 b/d.
Peak production from the field is expected to reach 90,000 b/d.
Production from Sakhalin-1s Arkutun-
20 years to support government plans to

improve the capacity and reliability of
the countrys power supply.
Phillipines
PNOC-EC WANTS
IN ON OTTO SC55
Otto Energy and PNOC Exploration
(PNOC-EC) agreed to commercial terms
on a 15% farm-in on SC55 offshore
Palawan. This will be fi nalized in an official farm-in agreement that is subject to
approval by the office of the president of
the Philippines.
SC55 covers 9880sq km and is a deepwater block in the middle of a proven
regional oil and gas fairway that extends
from the productive Borneo offshore
region in the southwest, to the offshore
Philippine production assets northwest
of Palawan.
According to Otto, SC55 contains a
number of distinct exploration play types
that provide material opportunities,
including the Hawkeye turbidite clastic
prospect and a significant carbonate gas/
condensate trend that has the potential
for an oil charge.
Post farm-in, Otto Energy will have a
total of 78.18% interest with partners Palawan55 E&P (6.82%) and PNOC-EC (15%).
Dagi field will be routed through the
existing Chayvo onshore processing
facility on Sakhalin Island and delivered
through pipelines to the De-Kastri oil
export terminal located in Khabarovsk
Krai, Russia.
Exxon Neftegas Ltd. is the Sakhalin-1
consortium operator with 30% interest.
Co-venturers include Sakhalin Oil and
Gas Development (30%), and affiliates of
Rosneft, the Russian state-owned oil company, RN-Astra (8.5%), Sakhalinmorneftegas-Shelf, (11.5%), and ONGC Videsh Ltd.
(20%).
New Zealand
TAG UPS TARANAKI
EXPLORATION
New Zealand Petroleum and Minerals
awarded TAG Oil 100% interest in two
new onshore Taranaki basin permits in
New Zealand.
The two permits include Petroleum
Exploration Permit (PEP) 57065 (Sidewinder North) and PEP 57063 (Waiiti)
and have existing 2D and 3D seismic
The gravity-based structure in route to Arkutun-Dagi field. Photo from Exxon Neftegas Ltd.
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2/4/15 9:54 AM
ROSNEFT BEGINS EXPERIMENTAL
PRODUCTION AT TURONIAN
Rosneft started experimental production of tight gas reserves of the Turonian
field at the Kharampurskoye field, situated at the territory of the Yamalo-Nenets
Autonomous District.
First produced gas has already been
delivered to the gas booster station of the
Kharampurskoye field.
In the course of scientific research carried out by RN-UfaNIPIneft, methods and
technologies of tight gas field exploitation
were determined and recommended for
further tests at the experimental block of
the Kharampurskoye field.
Three wells of different constructions
were drilled, and a wide range of research
conducted to choose an effective way of
production.The wells are currently in the
experimental operation mode.
During the year specialists will study
dynamics of different factors and as a re-
CONTRACTS
KEPPEL WINS US$200
MILLION ICE-CLASS
CONTRACT
Keppel Singmarine won a
US$200 million contract
from Luxembourg-based
Maritime Construction
Services subsidiary New
Orient Marine to build an
ice-class multi-purpose vessel with a completion date
in the mid-2017.
The ice-class vessel
will be designed to operate in temperature as low
as minus 30C and will be
equipped with Ice Class Arc
5 notation and capabilities
such as Class 3 dynamic
positioning and diving support functions.
The vessel will be built
to the proprietary design of
Keppel Offshore & Marines
(O&M) ship design and
development arm, Marine
Technology Development
(MTD).
DOF STACKS WINS IN
ASIA PACIFIC
DOF Subsea won several
new and extended existing
contracts by key clients in
the Asia Pacific region.
The contract awards will
sult will determine a technology, providing successful performance of commercial operation of Turonian deposits at all
licensed blocks of the company.
Thailand
TRIYARDS WINS US$75M
IN NEW LIFTBOAT ORDERS

Singapore-based TRIYARDS Holdings, has
received two new liftboat orders amounting
to a total of US$75.4 million in new orders.
The orders are for next generation fourlegged liftboats which can accommodate
150 persons each and can be utilized for
global deployment. The units are expected
to be delivered to US-based operators.
In the last six months, TRIYARDS has
received five new orders, increasing its
newbuild orders to eight.
Myanmar
OIL SIGNS PSC WITH MOGE
Oil India Ltd. (OIL), along with
improve the utilization of

the vesselsSkandi HerculesandSkandi Hawkduring
1H 2015 with an additional
about four months. The
scope of work includes
project management and engineering, subsea construction, FPSO moorings and
deep water survey systems
installation work.
Additionally, DOF was
awarded a letter of award
with a major international
oil company in the Asia
Pacifc region for a seven
plus three-year IRM contract utilizing the Skandi
Hawk.
The work scope includes
project management and
engineering, ROV and diving services.
ATWOOD MAKO
GETS SOUTHEAST
ASIA GIG
Atwood Oceanics entered
into an agreement to provide drilling services using
the Atwood Mako jackup
in Southeast Asia. The
contracts operating day rate
is US$155,000 for a minimum term of 70 days, and
includes a priced option for
an additional term.
consortium partners, signed

production sharing contract (PSC)
with Myanma Oil & Gas Enterprise
(MOGE) for two offshore blocks, M4
and YEB, on 4 December 2014 in a
signing ceremony held at Nay Pyi Taw,
Myanmar.
Block M-4 is located in Moattama
basin with an area of 4008sq mi, while
block YEB is located in Thanintharyi
basin with an area of 8223sq mi. Both
are in less than 600ft water depth.
The OIL-led consortium won these
blocks under the Myanmar offshore bidding round 2013, which was launched
on 11 April 2013. In this bidding round,
OILs consortium bid for three offshore
blocks M-4, M-8 and YEB.
OIL is the operator with 60% interest in both the blocks. Other partners
are Mercator Petroleum (25%), Oilmax
Energy (10%), and Oil Star Management
Services (5%).
The Atwood Mako is currently working offshore

Malaysia and is expected to
mobilize to its new location in late March, in direct
continuation of its current
program.
FUJIAN ORDERS
MACGREGOR VESSELS
Chinas Fujian Southeast
Shipyard awarded MacGregor a contract to supply
deck equipment packages for two 78m anchorhandling/offshore support
vessels under construction
for Singapore-based Adhart
Shipping.
Each MacGregor equipment package includes a
medium pressure anchor
windlass/mooring winch,
capstans, tugger winches,
storage reels, a provisions
crane and power packs.
From its Hatlapa range,
MacGregor will supply each
vessel with a 350-tonne
line pull/450-tonne brake
holding capacity low pressure anchor-handling/
towing winch. This will
be equipped with friction
clutches to enable quick release within three seconds
in an emergency.
The 12,000 BHP,

150-tonne bollard pull vessels are intended for operations in Asia/Pacific, the
Middle East and West Africa. Delivery is scheduled
for October and November
2015, with options for six
further vessels.
YINSON INKED FOR
DEEPWATER ENI FPSO
Malaysias Yinson Holdings
has won a US$2.5 billion
FPSO charter and operation
contract with Eni on the
deepwater Offshore Cape
Three Points Block (OCTP),
offshore Ghana.
The contract, agreed between Eni and Yinson companies Yinson Production
(West Africa) (YPWA) and
Yinson Production West
Africa Limited (YPWAL)
covers the charter, operation and maintenance of an
FPSO facility for 15 years,
with five yearly extension
options.
The FPSO is expected to
arrive in 2017 with first oil
from the development to
follow that same year. First
is expected in 2018. Peak
production of 80,000 boe/d
will be reached in 2019.
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Shipyards
COSLProspector delivered
The first new-build semisubmersible drilling rig incorporating Wood Group
Mustang Norways (WGMNs) GG5000 floating hull design has been delivered
to China Oilfield Services Limited (COSL) subsidiary, COSL Drilling Europe
out of Yantai CIMC Raffles Shipyard.
The COSLProspector was designed to operate in water depths up to 1500m
(5000ft) and drill wells up to 7600m (25,000ft). The unit is planned for use
on the Norwegian Continental Shelf (NCS).
WGMN was responsible for the basic design and participated in the detailed
design of the semi-submersible hull and main marine systems. The 50,000
man-hour project was engineered to Norwegian Petroleum Directorate standards.
WGMN is now also currently providing engineering services for another
semisubmersible to COSL, which is planned for operation in the South
China Sea.
CIMC Raffles
celebrates the
delivery of the
COSLProspector
semisubmersible.
Photo from CIMC
Raffles.
diverter control system for China based

Dalian Shipbuilding Industry Offshore
Co (DSIC).
The system is installed onboard
DSICs new build jackup drilling rig,
JU2000E-13. DSIC is supplying the rig to
drilling contractor Apexindo, where it
will be known as Tasha. Representatives
from Apexindo visited EFC Groups
base in Forres where the system was
built during its Factory Acceptance Test
(FAT).
These systems, with central architecture on a fiber optic network, are used to
control the BOP to seal, control and monitor the well. Designed by EFC Group,
the system provides full functionality
from two or more locations, typically
local hydraulic control, drillers electric
and toolpushers electric remote panels.
A solenoid valve enclosure is included
to provide an interface from the electric signals from the remote panel and
provide pneumatic or piloted hydraulic
signals to the BOP control actuators. A
hydraulic power unit can be included as
part of system supply, or it can be limited
to hydraulic control skid only.
KEPPEL DELIVERS
CIMC RAFFLES
COSCO DELIVERS NEPTUNO
COMPLETES ARCTIC SEMISUB

Chinas CIMC Raffles completed its fi rst
Arctic-operable semisubmersible, the
North Dragon, for client North Sea Rigs at
its Yantai yard.
CIMC Raffles designed the semisub together with Global Maritime. The vessel,
a GM4-D design, is capable of operating
in water depths ranging from 500-1200m
and drill down to depths of 8000m. It is
an ice class deepwater unit able to operate in harsh environments around -25C.
It is equipped with a Rolls-Royce
power system, Kongsberg DP3 dynamic
positioning system, Siemens electronic
control system and NOV drilling system.
The company said through improving
operation draft and increasing static air
gap of unit, heave motion response amplitude of unit has been reduced.
Cosco (Nantong) Shipyard Co. delivered

semisubmersible vessel, Neptuno, to
Mexicos Cotemar.
The vessel measures 91m in length,
67m in breadth and 27.5m in depth.
Cosco, according to a US$230 million contract in Sept. 2014, will build
a 21,000DWT module carrier for an
unnamed European company, set for
delivery in 2Q 2016, as well as build
a floating accommodation unit (FAU)
for an unnamed Singaporean company
with an expected delivery in 1Q 2017.
In addition, the buyer has also secured
options for five additional FAUs.
EFC COMPLETES DALIAN ORDER

EFC Group has completed a
US$2.2million contract to design and
build a blowout preventer (BOP) and
PEMEX VESSEL
Singapore-based Keppel FELS delivered
the fi rst of two KFELS B Class jackup
rigs to Mexican national oil company,
Petrleos Mexicanos (Pemex).
The Yunuen jackup is designed to operate in water depths of up to 350ft and
drill to depths of 30,000ft.
The jackup is equipped with an advanced and fully automated high capacity rack and pinion jacking system, and
self-positioning fi xation system and has
accommodations with full amenities for
120 people.
The Yunuen, in addition to the second
jackup Keppel building for Pemex, will
join another six KFELS B Class rigs
that Pemex has chartered from drilling
contractors for deployment in offshore
Mexico.
Last month, Keppel O&Ms subsidiary, Keppel AmFELS delivered the
Coatzacoalcos jackup rig to Mexicos
Perforadora Central S.V. De C.V. that will
be chartered by Pemex for work offshore
Mexico.
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Geology & Geophysics

Polarcus begins Phoenix seismic campaign
Seismic acquisition began on the new
production. They will cover the majority
over and adjacent to the Phoenix South-1
Polarcus Capreolus 3D multi-client proj-
of the four exploration permits making up
oil discovery which is estimated to con-
ect over the Phoenix area in the Rose-
the Phoenix area: WA-435-P, WA-436-P,
tain up to 300MMbbl in place.
buck basin, offshore Western Australia.
WA-437-P and WA-438-P.
The survey is using two high-perfor-
The data acquisition phase is esti-
The Capreolus 3D multi-client project
mated at approximately eight vessel
mance, 12-streamer Polarcus vessels,
comprises a substantial 15,000sq km and
months (four calendar months), with
Polarcus Amani and Polarcus Asima, op-
has been designed to provide a basin-wide
final data products expected to be avail-
erating in tandem in order to maximize
high quality broadband 3D seismic dataset
able within 2Q 2016.
Polarcus Asima. Photos from Polarcus.
GARDLINE CGG GETS

AUSTRALIAN 2D SEISMIC
Spectrum awarded Gardline CGG the
Rocket 2D Phase 1 multi-client marine
broadband seismic survey under a master service agreement signed in October
2014 between the two companies.
M/V Duke started acquisition on 23
January directly following completion
of the Houtman project.
The multi-client project, named
Rocket and encompassing up to
10,000km of 2D seismic, will be conducted in two phases between now
and June. M/V Duke will complete the
4400km of Phase 1 within the next six
weeks.
Rocket is Spectrums fi rst acquisition
project in Australia.
ROSNEFT BOOSTS
EAST MESSOYAKHA RESERVES
Recoverable reserves at East
Messoyakha field onshore Russia have
increased by 32%, partner Rosneft
announced.
A significant part of reserves was
transferred from the preliminary
Polarcus Amani.
qualified category (C2) to the commercial

one (C1) due to geologic survey conducted at the Messoyakha fields group
in 2013-2014. Particularly, in 2014, four
exploration wells were drilled and 3D
seismic data acquisition on 490sq km
territory was conducted. Also a geologic
model, on the basis of which a fi rst-stage
area was prepared for full-scale development, was adjusted.
The Russian explorer said that C1
oil and condensate reserves at the field
increased by 49.7 million tons in 2014,
reaching 204 million tons. The net
recoverable oil and condensate reserves
of C1+C2 categories of West Messoyakha
and East Messoyakha fields totals about
480 million tons. The results of current
estimate were successfully approved by
the State Reserves Commission, Rosneft
said.
CGG WINS PAPUA

NEW GUINEA SEISMIC SURVEY
InterOil awarded CGG both a land seismic and an airborne gravity survey to
assess the hydrocarbon potential of its
acreage in Papua New Guinea.
The 2D conventional land seismic

award comprises a 465km survey in
InterOils southern PPL474 and 476 permits (the Murua survey) and may include
additional coverage totaling in excess of
200km to the north over their Triceratops
and Raptor discoveries.
CGGs airborne group is to conduct
a large FALCON Airborne Gravity
Gradiometer (AGG) survey to acquire
11,000 line-km of high-resolution data
with fi xed-wing aircraft and 25,700
line-km using rotary-wing aircraft, better
suited to acquiring high-resolution measurements in the rugged terrain.
For the conventional seismic, CGG
will deploy 2100 Sercel UNITE cablefree channels and autonomous seismic
source technology during the two-part
survey, which started in January and
ends in August 2015. CGGs Bangkok
imaging center will process the land
seismic data as part of the integrated
service CGG is offering InterOil.
On 7 January, CGG announced it had
completed processing over 28,000 sq km
of data gathered by an FALCON AGG
survey within the Papua Foreland Basin.
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2/3/15 12:00 PM
ABBs Will Leonard looks at how

emerging economies are driving
the future of oil and
gas production.
Demand in Asia
dictates project viability
he ASEAN countries, along with China and India,

are collectively shifting the global energy epicenter to Asia. The axis of the oil market is shifting
from the trade between the Middle East exporters and US and
European importers to one that links Asian developing markets
to the Middle East. However, Asian markets are absorbing more
oil than the Middle East can supply to support these markets
growing needs. In fact, by 2035 Asia will account for more than
half of the worlds energy consumption.
The countries of Southeast Asia, for instance, are extremely
diverse with vast differences in the scale and patterns of energy
use and energy resources.
Since 1990, the regions energy demand has expanded 250%
and further growth is inevitable when you consider that the
energy use of its 600 million inhabitants is extremely low, at
just half of the global average.
Southeast Asias energy demand is set to increase by over
80% between now and 2035 as a result of a forecast tripling of
10 AOG
the regions economy and the population expanding by onequarter. As such, oil demand could rise from about 4.4 mb/d
today to 6.8 mb/d in 2035, almost one-fifth of projected world
growth; coal demand is expected to triple by 2035, accounting
for nearly 30% of global growth; and natural gas demand is
set to increase by 80% to 250 Bcm. As such, Southeast Asias
energy-related CO2 emissions will almost double, reaching 2.3
Gt in 2035.
The abundance of coal in the region is set to be the main fuel
that will boost its share of electricity generation from less than
one-third today to almost one-half by 2035. The use of coal will
be at the expense of natural gas and oil. This is already underway, with some 75% of thermal capacity under construction
being coal-fi red.
The Russian effect
Meanwhile Russia, with proven reserves of some 5 Tcm of gas
in its Eastern regions, has the potential to make significant ex-
| January February 2015 For reprints please contact the Publisher.
aogdigital.com
010_AOG0215_feature_ABB.indd 10
2/3/15 12:03 PM
Left: A welder works on the Power of Siberia pipeline. Above: Russian President Vladimir Putin,
First Vice Premier of Chinas State Council Zhang Gaoli, and Gazproms Alexey Miller attend the
Power of Siberia construction launch in September 2014. Photos from Gazprom/RIA Novosti.
port sales into the Asia Pacific region, which

contains the worlds largest LNG importing
nations and two of the worlds fastest growing gas markets in China and India.
However, despite this potential, Russias
only significant exports in the region are from
Sakhalin 2 project, which currently sells 10.8
mt of LNG/yr into Asian markets. But this is all about to change.
Russias signing of a multi-billion dollar, 30-year gas deal
with China back in May, marked a significant milestone in the
importance of the emerging economies to the future of oil &
gas production. The deal between Russias Gazprom and China
National Petroleum Corp. (CNPC) is expected to deliver some
38 Bcm of natural gas a year eastward to Chinas burgeoning
economy, starting around 2018.
Russia has been keen to find an alternative energy market
for its gas in the face of European sanctions over the crisis in
Ukraine. However, the deal has been some 10 years in the making and during that time China has found other gas suppliers.
Turkmenistan is now Chinas largest foreign gas supplier, and
last year it started importing piped natural gas from Myanmar.
China needs the gas to help cut its reliance on coal-fired
plants as well as the desire to diversify its supply. China is
also Russias largest single trading partner, with bilateral trade
flows of $90 billion (53 billion) in 2013. The two neighbors
aim to double the volume to $200 billion in 10 years. As such,
the agreement is seen as much for the investment that China
will make into Russias power and transport infrastructure.
Another reason for the lengthy delay in the deal has been the
construction of pipelines into China. Currently, there is one
complete pipeline that runs across Russias Far East to the Chi-
nese border, called The Power of Siberia. It was started in 2007,

three years after Gazprom and CNPC signed their initial agreement in 2004. But financing the $22-30 billion cost of sending it
into China had become key to an agreement being reached.
Financing the future
Following close on the gas deal announcement, China was
again at the heart of an initiative to increase infrastructure financing for developing countries. In July 2014, China, together
with the other BRICS nations Brazil, Russia, India and South
Africa agreed to create a new development bank (NDB) that
would have initial capital of US$50 billion.
In October, 21 Asian countries agreed to establish a new
Asian Infrastructure Investment Bank (AIIB) for which China
will provide up to 50% of initial capital. The banks aim is to
provide funding for infrastructure projects in underdeveloped
Asian countries.
While the initiatives have been criticized by some as a way
for China to simply challenge Western-backed institutions such
as the World Bank or International Monetary Fund (IMF) as a
result of Beijings growing discontent with these bodies there
are others who believe the new development banks might have
a positive impact on emerging economies.
Acquisitions and sales
The impact of the emerging economies can be felt across the
world, with Chinas influence on the North Sea alone, resulting
in some 20% ownership. Ventures such as Nexens purchase
by Chinas national oil company CNOOC and that of Talisman
with Chinas Sinopec are typical of the acquisitions that are
continuing in the market.
aogdigital.com
11
2/4/15 9:50 AM
the supply of FPSOs.

A few petroleum services firms in Malaysia and Singapore have made a gradual
entry to the global FPSO market, where
they will compete with the likes of BW
Offshore, SBM Offshore and MODEC. In
recent years, industry heavyweights such
as BW, SBM and MODEC have shifted
their focus to more profitable deepwater
projects in West Africa and Brazil.
Interest in FPSOs is rising as offshore
production now accounting for about
30% of global petroleum production is
projected to track the anticipated gains
in worlds energy consumption, while
advancement in technology may facilitate
hydrocarbons extraction in more challenging deepwater environments.
Above: Russian President
Vladimir Putin, First Vice Premier
of Chinas State Council Zhang
Gaoli, and Gazproms Alexey
Miller attend the Power of
Siberia construction launch in
September 2014.
Right: Welders work on the
Power of Siberia pipeline during
the construction launch in
September 2014.
More recently BG Group announced the sale of its 543km

pipeline that runs between coal seam gas fields in the Surat
Basin to BGs QCLNG plant on Curtis Island in Gladstone; the
first of three large LNG export projects due to begin production
over the next 12 months. Australias biggest gas transporter,
APA Group has agreed to pay US$5 billion ($6 billion) for the
recently built pipeline in BG Groups liquefied natural gas project in Queensland and buying its way into the growing LNG
export sector in eastern Australia. LNG from the project will be
mostly shipped to China, to CNOOC.
The sale, expected to complete in June 2015, may set the
scene for similar pipeline divestments by the two other LNG
projects in Queensland, Santoss US$18.5 billion GLNG venture, and Origin Energys Australia Pacific LNG project.
Surge in FPSO interest
Another area of importance is that of floating production, storage and offloading systems (FPSOs) which are now recognized
as the most dominant floating production facility. Brazil tops
the list of FPSOs in service and on order, followed by Southeast
Asia and then Africa. Other major locations include the Gulf of
Mexico, Northwest Europe, Australia, the Mediterranean and
Southwest Asia/ India.
Many Southeast Asian countries are moving to FPSOs in
order to grow their businesses. Traditionally, the companies
established their businesses by operating as service providers
to the upstream petroleum sector, offering services in areas
such as the supply of offshore support vessels or offshore
fabrication. Most of them have since widened their services to
grab a larger slice of the lucrative upstream market, including
12 AOG
The outlook
The role of global companies
like ABB in assisting the
emerging economies should
not be understated. ABB, for
instance, is present in over 100
countries, with manufacturing
facilities in many of the emerging economies.
In China alone, ABB has
an accumulated investment
of about $1.8 billion, and has
maintained a presence in
China for over 100 years. This continues to grow steadily
with over 19,000 employees sitting across 109 locations. Over
80% of sales come from locally made products, systems and
services.
However, it is not just in the supply of products, systems and
services where opportunities lie. As important is an exchange
of knowledge on all aspects of the industry. Take functional
safety as an example. ABB has established a network of safety
execution centers (SECs) that help play a key role in delivering
total safety-assurance for customers operating high-risk process
installations. The SECs design and engineer safety instrumented systems (SIS) to support effective functional safety
throughout the entire lifecycle of process and functional safety
solutions.
Many operators and contractors within the oil and gas industry do not have access to specialist functional safety resources
in-house. ABBs support can ensure that safety is designed into
projects properly from the start, avoiding not only the potentially catastrophic consequences of underspecifying safety
systems, but also the added costs of overspending on unnecessary equipment. AOG
Will Leonard is the head of marketing for

ABBs Chemical, Oil and Gas business in the
UK & Caspian region. Will has a dual honors
degree in Business and Law at Keele
University. He has worked in the industry for
the past 10 years.
aogdigital.com
2/3/15 12:04 PM
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AOG .indd 8
or retransmission.
2/4/15 8:07 AM
Sarah Parker Musarra looks deeper into how

western sanctions are affecting the service
companies that do business offshore Russia,
and the other avenues Russia is pursuing for
project financing.
b
l
g
e
s
n
t
a
t
R
i
w
a
t
h
t
m
n
Service during
sanction
competitor of America, thats a complicating factor, says Dr.
Jim Krane, a fellow in energy geopolitics at Rice Universitys
Baker Institute for Public Policy.
Offshore workers overlooking

operations in the Kara Sea.
Image from Rosneft.
or Western-based service companies whose products or

personnel were at work in the waters off the Russia, projects that were already complex by virtue of the location became
substantially more so with the recent Western sanctions against
the Russian Federation.
When you have the US Treasury Department or the federal
government lowering the boom on a country thats a strategic
14 AOG
The balancing act

These sanctions differ from previous programs the energy
industry has dealt with, explains Matthew West, a partner with
the international law fi rm Baker Botts LLP.
An important element of the sanctions regarding the situation in Ukraine is that these sanctions are more narrowly
tailored than if you look at a program like what the US has
imposed on Iran, says West, who focuses on international
transactions, US regulation of international trade and investment, and global trade policy and assists clients in navigating
sanctions.
West notes that companies, including oilfield service companies, can likely still fi nd opportunities in commercial activities
outside of those areas currently under sanction. However, the
difference would be in the working environments regulatory
landscape, he says.
Prior to the sanctions, Western companies could go in to
Russia and could work without having to be overly concerned
that their operations were going to run afoul of US trade laws,
aogdigital.com
014_AOG0215_Feature2_sanctions.indd 14
2/3/15 12:06 PM
g
w
a
t
D
T
E
t
S
e
o
t
K
h
i
i
o
P
because there werent economic sanctions on Russia and there,

largely, were not highly restrictive export controls on technologies used in the energy industries in Russia, he says.
If they are still able to operate in Russia in its post-sanction
environment, service companies must now take the proper
steps to make sure that restricted US or European technology is
not used for operations in sanctioned areas, and that the operations in Russia are compliant with the applicable sanctions.
If the service companies are involved in a sector of the oil
and gas industry unaffected by the sanctions, they must be sure
to keep in strict compliance with applicable US and EU rules.
If the service companies are currently unable to operate in
Russia, Krane warns that it might become a diplomatic dance
in order to maintain and protect business interests there.
Its a fi ne balance for these companies, Krane says. You
want to show that you have some commitment to the country
and your business there. You have to be cognizant of the threat
that sanctions pose to your relationships in Russia, but if you
have investments sunk in Russia you cant just walk away from
those.
However, for now, Krane says Russian companies will have to
move on to the next project on their list without a Western partner while being mindful of the diplomacy necessary on their end.
work approximately US$60 million net.

Days after the discovery announcement, on 30 September,
Bloomberg reported that Schlumberger was withdrawing expat
employees from the country.
I see the news on withdrawal of key technical and management personnel from Russia by service companies as a very
unwelcome effect of sanctions, says Dr. Anna Belova, GlobalDatas Lead Upstream Analyst covering the former Soviet
Union. While the sanctions were designed to target the future
strategic reserves in the offshore Arctic and in the low-permeability plays, limited availability of service providers will affect
a lot of conventional oil and gas production in Russia.
Many Russian operators came to rely on the expertise of
global service companies to produce from both greenfield and
depleted fields thus, this latest development would affect the
entire industry, not just offshore or unconventional segments.
Belova says that Western-based service companies had found
a great deal of success in the country.
Where the exploration and production companies them-
Right now, markets are over-supplied, so theres no great urgency to move ahead with increased production, but you dont
want to alienate people either, he says. When this poisoned
atmosphere clears and ties become workable again, you want
to re-open these projects if the situations warrants it.
selves might not have been able to penetrate the market, the
Schlumbergers of the world and the Halliburtons of the world
have been doing a lot of business in Russia, she says. However, I am somewhat optimistic as to US company relationships
in Russia.
I think Russia needs the US, but the US needs the market for
its services.
She continues, saying that more industries, such as the European food industries, stand to feel the sanctions squeeze.
The oil and gas industry is so well integrated in international geography you cannot just take away one-third of the
business and expect everyone else to do well, she said.
The bottom line: Short-term, the outlook is not good for USbased services companies, according to Alexei Kokin, senior oil
and gas analyst for Moscow-based URALSIB Capital.
As far as I know, Schlumberger received 5-7% of its revenue
from Russia and Halliburton, Baker Hughes, and Weatherford,
4-5%, he says. Schlumberger warned in Q3 2014 that the
sanctions could hurt its earnings per share (EPS) by $0.03 of
EPS, which later turned out to be 2% of Q3 2014 EPS.
That gives an idea of the short-term damage to earnings
from the sanctions. If the sanctions remain and are extended to
cover all tight oil reserves, the oil field services majors may lose
Direct effects
The fi rst casualty of Western sanctions against Russia was the
ExxonMobil-Rosneft partnerships Universitetskaya-1 exploration well in the East-Prinovozemelskiy-1 license in the Kara
Sea. The well was spudded despite sanctions on 31 July and
encountered 338Bcm of gas and more than 100 million tons of
oil in late September. Several Western companies had a hand in
the operation, including:
Nord Atlantic Drilling, Schlumberger, Halliburton, Weatherford, Baker Hughes, Trendsetter, and FMC Technologies.
Already, the joint venture in charge of the Kara Sea prospect,
Karmorneftegaz SARL (Rosneft 66.67%, ExxonMobil 33.33%)
has ended associated contract work. Siem Offshore reported
its contract for the 2015 season in the Kara Sea was cancelled
in early December. The original contract involves the charter
of two AHTS vessels, Siem Topaz and Siem Amethyst, and one
PSV, Siem Pilot. Siem Offshore said the original charter was
The Mikhail Ulyanov oil vessel arrives to load oil from Gazproms
ice-resistant Prirazlomnaya platform on the Prirazlomnoye field.
It was the first Russian offshore Arctic field. Photo from Gazprom
aogdigital.com
15
2/3/15 12:07 PM
over half their Russian revenues, Kokin says.

Rosneft was already moving to decrease its dependency on
international service companies. In a 13 July US$500 million
cash transaction, it purchased Weatherfords land drilling and
workover operations in Russia and Venezuela. Weatherford said
in a statement that the Russian company landed 61 Russian
land drilling crews and a fleet of workover rigs, and six land
drilling rigs from the Venezuelan operations.
Even though the sanctions do
not directly affect the day-to-day
operations of the conventional oil
and gas field, were still going to
see some fall-out from sanctions
and I think the result is going to
be more Russian drilling service
companies coming into play, Belova says. Also, the oil companies
themselves will develop drilling
services in-house.
ing a relationship.
At the time of the signing, Rosneft Chairman Igor Sechin
said: Todays reached agreement show the systematic development of the large-scale cooperation with our Chinese partners,
including the upstream area in the Russian Federation.
Of course, China would have its own reasons to strengthen
its relationship with its Eastern neighbor - Russias massive oil
and gas reserves, which are 80 billion bo and 1688Tcf, respectively, according to the US
Energy Information Administrations (EIA) January 2013
estimates.
China seems to be using
this opportunity to secure
future imports of Russian oil
and gas on favorable terms,
Kokin says.
On 24 March 2014, the US
Energy Information Administration said that Chinas rising
Unintended
oil consumption coupled with
consequences
steady economic growth, proAs a result, Russian oil and gas
pelled the country past the US
companies are turning to other
to become the worlds largest
Rosneft operating in the Kara Sea, which is where the
sources, most notably Asia, for
net importer of petroleum and
Universitetskaya-1 exploration well in the East-Prinovozemelskiy-1
the fi nancing and technology
other liquids.
license is located. Rosnefts joint venture partner on the license is
critical for deepwater exploration the US-based ExxonMobil. Image from Rosneft.
Although Russia and China
and production - particularly in
are working to strengthen
the Arctic.
their business and lending relationship, it might not be as muOn 10 July, Offshore Oil Engineering Co., a subsidiary of Chitually beneficial to the Eastern giants as they anticipated, says
na National Offshore Oil Corp., signed a $1.6 billion contract
Michael Wachtel, partner and head of the oil & gas practice at
with Russias Novatek to construct the core modules for the
Clyde & Co.
Yamal LNG plants liquefaction facilities. Belova identifies this
Russian companies will perhaps look to Chinese banks
transaction as one of the main examples of Russia strengthenfor funding, but this may not assist them, as Chinese funding ties with China as a result of the sanctions.
ing to foreign companies tends to focus on bolstering Chinese
Located in the estuary of the Ob River and locked in ice nine
exports, says Watchel, who specializes in cross-border merger
months a year, Yamal LNG is one of Russias most extensive
and acquisitions, and regulatory advisory work in regions inprojects in the Arctic. Partner Total says it will eventually
cluding the Commonwealth of the Independent States.
involve the drilling of more than 200 wells, the construction of
Financing
three 5.5MTPA trains, a gas terminal, and the commissioning
Beyond the sting felt by the service companies and exploration
of 16 icebreaker tankers, each able to transport 170,000cu m.
and production companies with long-term Russian projects in
Most recently, on 25 November, Gazprom Neft and stateplace, the sanctions rigidified Russias lending situation. The
owned PetroVietnam began exclusive talks to potentially coopeffects of this, too, could be felt outside of Russia.
erate in the development of the Dolginskoye field, located about
Wachtel said that the difficulty Russian companies now have
75km off the Russian coast in the Pechora Sea.
in securing fi nancing contributes to the precarious situation.
Russia is scrambling to attract Asian investment to make up
Overall, European companies are reluctant to lend to even
for the funding, technology and support yanked by the Western
those Russian companies currently not sanctioned in case that
companies, and it is offering an array of diverse investment
situation fi nds itself changing.
deals to do so. In the event that sanctions stay in place longFor the time being this is resulting in delays, but over the
term, Belova believes that Russian companies will turn to lesslonger term Russian companies may not be able to pay cash
costly onshore developments where they already have existing
calls from the joint venture partner, he said. Clearly delay in
expertise. In a move that could be indicative of this gradual
payment is a big issue for service companies, which rely on a
shift, and of Russias desire to offer attractive investments to
steady income stream, and some of the smaller players could
China, Rosneft signed a framework agreement on 10 November
fi nd themselves in trouble.
to extend China National Petroleum Corp. (CNPC) a 10% stake
While companies await getting back to work on their Russian
in Vankorneft, its subsidiary that operates the onshore Vankor
deepwater projects, Krane warned of the sanctions inherent
project.
stickiness.
We see 10% ownership being offered to CNPC as means of
Sanctions are easier to impose than they are to retract, he
raising fi nancing. Rosneft doesnt need Chinese expertise. The
explains. Especially, if Congress gets involved. Its easier to
asset is online and producing. The lifting cost at Vankor is
fi nd reasons to leave them in place than to take the effort to roll
below $3/bbl. Its a very profitable project, Belova says. But
them back. AOG
Russia is offering 10% equity to CNPC as a means of establish-
16 AOG
aogdigital.com
2/3/15 12:07 PM
keynote speakers
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AOG .indd 10
2/4/15 8:11 AM
The value of
good guidance for safe
and efficient operations
mproving safety levels in the offshore oil and gas industry

leads to ever more efficient operations and lies at the heart of
our work at the International Marine Contractors Association
(IMCA) on behalf of 1000+ member companies around the globe,
delivering offshore, marine and underwater solutions. The core
purpose of IMCA is to improve performance by championing
better regulation and enhancing operational integrity.
The marine contracting industry plays a vital global role.

Its vessels account for 4% of the worlds maritime fleet. Collectively, IMCA members employ 350,000 people and have an
annual turnover ~ US$150 billion. Marine contractors work in
all the worlds major offshore areas, delivering offshore oil and
gas and, in recent years, marine renewables projects that quite
literally fuel the global economy.
In common with other trade associations, we provide members with guidance, allowing them to self-regulate rather than
look to clients or governments for setting rules and procedures.
While governments legislate on a range of issues in the public
interest, they cannot produce legislation for every part of an
industrys operations - nor may that be desirable. A key benefit
of industry guidance is that it can be implemented and updated
more quickly than legislation, which is vital in an industry
with rapidly advancing technology.
We publish some 200 guidance notes and technical reports
18 AOG
many available for free downloading from our website by members and non-members alike. These have been developed over
the years and are extensively distributed. They are a definition
of what IMCA stands for, including widely recognized diving
and ROV codes of practice, DP (dynamic positioning) documentation, marine good practice guidance, the Common Marine
Inspection Document (CMID) now available electronically
as eCMID, safety recommendations, outline
training syllabi, and the IMCA competence
framework guidance.
IMCA also produces materials to promote
safety including DVDs with subtitles in
multiple languages including Filipino, Malay,
Tagalog, and Bahasa Indonesian; it also circulates information notes and distributes safety
flashes.
Highly relevant in Asia-Pacific
Well over a quarter of IMCA member companies operate in the Asia-Pacific region and
the Regional Section is particularly active.
Ken Livingstone, Director, Ship Management,
Asia-Pacific Marine Operations Services
at Technip Singapore, is the newly elected
Chairman.
This is an important oil and gas province to
IMCA member companies. The IMCA Annual
Seminar was held in Singapore in 2013 and will be held there
again in 2017.
In November, IMCA announced the appointment of Denis
Welch as Regional Director Asia-Pacific (with Andy Bolton
taking up a similar role for Australia and New Zealand). There
is great value in having well-respected and
knowledgeable people on the ground to
represent IMCA, to work with our members
and with stakeholders including regulatory
authorities; government representatives;
regional trade associations; learned bodies
and professional membership organizations; NGOs; clients; and potential member
companies.
Denis Welch
Wit hin days of his appoint ment,
Denis had been invited to become a n Obser ver in t he
meet ings of t he Singapore Shipping Associat ions (SSA)
aogdigital.com
018_AOG0215_feature4_HSE-IMCA.indd 18
2/3/15 12:13 PM
e
s
Of fshore Ser vices Com mittee (2013/2015).

The larger the IMCA membership, the greater its voice, and
the more impact it can have promoting safe and cost-efficient
operations.
Zero incidents
IMCA members holy grail is zero incidents. Statistics published mid-year 2014 showed that lost time injury frequency
rates (LTIFR) had dropped to the lowest figure since IMCA began collecting data. However, we cannot be complacent; IMCAs
challenging work program on behalf of member companies
shows how seriously the zero incidents goal is taken. A record
number of companies took part in the survey, with 25% of them
coming from the Asia-Pacific region (the highest after Europe &
Africa), based on over 1300 million man-hours of work.
Even though LTIFRs have dropped, there is still room for
improvement. The causes of LTIs in the Asia-Pacific Region are
shown in Figure 1, and are similar around the world. They show
where we should be focusing guidance and safety awareness materials; and thus enable me to highlight several of our invaluable
pocket safety cards, safety posters and DVDs.
The biggest cause of LTIs in IMCAs Asia-Pacific Region is
struck by moving/falling objects (22%), followed by falls from
height, and falls on the same level (including slips and trips)
(both at 17%). Interestingly the Asia-Pacific totals differed from
the global figures which saw struck by moving/falling objects
at 23% still the highest reported type of incident; falls on the
same level which included slips and trips accounted for 20%,
so Asia-Pacific did better on both. However, the global figure
for falls from height was 10%, meaning that the region had significantly more falls, something our members need to address.
Safety materials- constant reminders
I would also like to highlight entrapment as a safety concern
(2%). IMCA recently issued a DVD (available to watch online)
on working in confined spaces with the voice over in English,
French, Latin American Spanish, Italian, Brazilian Portuguese,
Tagalog, Malay, Indonesian, Arabic and Russian.
Sadly, more people die or are injured in enclosed spaces than
through any other related on board work activity this despite
numerous guidelines, safety regimes, operational procedures,
manuals and assurance surveys. I would urge wide use of this
video, which can help save lives. Back it up with the Confined
spaces can be deadly pocket safety card, which does just what
it says on the proverbial tin it will indeed fit into a pocket and
provide a double sided memory jogger about the dangers of confined spaces. There are currently 23 in the series, with another
two to be published shortly.
Another video which has just gone live on our website is In
the Line of Fire. It sounds as if a war is in progress; we have a
constant battle against accidents and incidents of all types as
we strive for zero incidents. Theres always further to go.
Were eager that those working in the industry not only
recognize when they are in potential danger, but can also see
when their colleagues are in the line of fire and warn them
accordingly. The video invites participation as it asks its audience can you see the line of fire? and the pulsating countdown system encourages viewers to look and even shout out
their answers, which could be move your hand NOW or its
behind you.
Back to those three top LTI danger areas. First, struck by
moving/falling objects this is a topic covered in both an eye-
The IMCA Annual Seminar in 2013 in Singapore which attracted

more than 480 delegates from 32 countries. Photos from IMCA.
catching poster (measuring 420 x 594 mm) Avoiding dropped

objects and by a pocket safety card with the same title.
Falling from height, as already mentioned had a higher
proportion of LTIs in the region than the global figure. Aware
that falls from height (which can not only cover going up to fall
down, but falling down things like stairwells, hatches, etc.)
continue to rate highly, IMCA has produced items to help lower
the potential for injury or death such as a Working at Height
safety DVD again available in a range of languages (and viewable online); a safety poster that looks at safe use of ladders; and
useful pocket safety cards to act as constant reminders of the
dangers.
Lastly, preventing slips, trips and falls is the subject of another effective poster and a pocket safety card as well as a DVD
which once again can be played in many languages.
We at the secretariat and our regional committee and director will continue to work tirelessly to ensure safe and efficient
working in one of the most vital offshore oil and gas areas in
the world. www.imca-int.com AOG
Chris Charman, Chief Executive,
International Marine Contractors Association
aogdigital.com
018_AOG0215_feature4_HSE-IMCA.indd 19
19
2/3/15 12:11 PM
Conversion work
The first of the Euronav VLCCs arrive at Sembawang for conversion into FPSOs for Totals Kaombo project offshore Angola.
Alan Thorpe recently paid a visit to

Singapores shipyards. He gives a rundown
of some of the current floating production
and storage unit conversions underway in
Singapore and in Malaysia.
involved in the extensive refurbishment of an existing FPSO

Apache Energys 101,832-dwt Ningaloo Vision, which will go to
the Van Gogh Filed in the Exmouth Basin, offshore Australia.
The long-term FSO conversion project for Mobil Cepu, the Gagak
Rimang, was completed during September 2014 and has now left
Sembawang Shipyard, part of Sembcorp Marine, for her station
offshore Indonesia on the Banyu Urip field in the Cepu oil block
in East Java for Exxon/Mobil.
eppel Shipyard, part of the Keppel Offshore & Marine
Sembawang Shipyard was responsible for the full engineering,
Group, is the worlds leading exponent of the FPSO/FSO
procurement and commissioning (EPC) contract involving this
conversion market.
project. The vessel is able to contain 1.7 MMbbl and it will be
In this market, Keppel has been involved is some 119 such
hooked to a mooring tower on the bottom of the sea. If, next year,
projects since 1981. This year alone Keppel has delivered four
Banyu Urip field produces 165,000 b/d, the vessel is ready to
FPSO/FSO conversion projects and had another two due for
store the production of 10 days.
Meanwhile, the first of the two Euronav very large crude carriers
delivery before the end of 2014 - the 107,000-dwt Armada
(VLCCs) has arrived at the yard for conversion to FPSOs for Total/
Sterling 11 for Bumi Armada Berhad, and the 94,225-dwt Ratu
Saipem. The two vessels will
Nusantara for M3nergy Offshore.
be in the yard for 32 months
There are also three further
total, the FPSO conversion work
FPSO projects currently underlasting some 28 months for
way at Keppel Shipyard the
each vessel, the second vessel
128,829-dwt Bertam for Lundin
due in the yard within the next
Services, to be stationed offshore
few weeks. The first vessel, the
Malaysia, the 159,000-dwt
VLCC Olympia has arrived and
Turritella for SBM Offshore, to
her sistership, Antarctica, will
be stationed in the Stones Field
arrive before the end of the year.
offshore Australia for Shell, and
The two sisterships will
the 166,468-dwt Kraken, for
be converted into two turretBumi Armada Berhad, for the
moored FPSOs for the Kaombo
Kraken field in the UK sector
The Navion Norvegia in Semcorp Marines new SIY yard.
project, approximately 150km
of the North Sea. Keppel is also
20 AOG
aogdigital.com
020_AOG0215_Feature6_Vessels_Alan.indd 20
2/4/15 9:43 AM
Global
5th Annual
forum
Save the date!
September 15
15-17, 2015
Galveston Island Convention Center
Visit globalfpso.com
For more information
Interested in sponsorship and exhibiting?
Contact: Gisset Capriles
Business Development Manager
Direct: 713.874.2200 | Fax: 713.523.2339
gcapriles@atcomedia.com
SPONSORS
AOG .indd 9
2/4/15 8:13 AM
offshore Angola. The major work will include refurbishment

Finlands Deltamarin has won the contract with Jurong
of the VLCCs, construction engineering, the fabrication of
Shipyard for the basic engineering of the Libra FPSO. The conflare, helideck, upper turret and access structure, integration
tract guarantees the continuation of Deltamarins involvement
of the topsides modules (which will be fabricated at Saipems
in the Libra project as the company has earlier participated in
Indonesian yard) and lower turret components, and pre-commisthe outline phase design of the unit. We are very happy to be
sioning of the FPSOs. The two converted FPSO units, owned by
a part of this fast track FPSO project and we strongly believe
Frances Total and operated by Italys Saipem, will each have an
it will be a success for all parties. This contract shows the
oil treating capacity of
markets strong belief in
115,000 b/d, a water injecDeltamarins ability to
tion capacity of 200,000
perform in technically
b/d, a 100 MMscf/d gas
complex fast track offcompression capacity and
shore engineering proja storage capacity of 1.7
ects, says Deltamarins
MMbo.
Offshore Director
One of the most
Oskari Jaakkola.
recently-won projects
Meanwhile, the
at Jurong Shipyard, also
VLCC conversion at
part of Sembcorp Marine,
Jurongs Tanjung Kling
likely to take two years,
facility brings Jurongs
involves the conversion
tally to 22 conversion
of Teekays 130,596-dwt
projects for MODEC.
shuttle tanker Navion
This project, involvNorvegia into an FPSO to
ing conversion of the
work in ultra-deep waters
300,955-dwt VLCC
The Kraken FPSO will sit offshore the UK in the North Sea. Image from EnQuest.
in Brazils Santos Basin.
Centennial J, is schedThis conversion, although
uled for completion by
a Jurong contract, is actu4Q 2015 whereupon the
ally being undertaken at
FPSO will be deployed
Sembcorp Marines new
on the TEN project in
Sembmarine Integrated
Ghana. MODEC will
Yard at Tuas (SIY), which
operate the unit on
opened during 2013 (OE:
behalf of Tullow subOctober 2013). Currently
sidiary Tullow Ghana.
the yard comprises four
The unit will have
large graving docks, all
capacity to produce and
of which can accommotreat 80,000 b/d crude,
date ships up to VLCC/
65,000 b/d of produced
ULCC (ultra large crude
water and 180 MMscf
carrier) size. The Navion
gas. The unit, which
Norwegia will be the first
will host several subsea
conversion to be carried
tiebacks from three
The Shell Stones project in Keppel. Photo by Alan Thorpe.
out this yard.
reservoirs, will also be
The contract, placed by OOGTK Libra GmbH & Co KG, a
capable of storing 1.7 MMbo. The fields lie in water depths of
joint venture between Brazils Odebrecht Oil & Gas and Teekay
1-2000m and the FPSO will be about 25km from the Jubilee field,
Offshore, is worth US$696 million. Work will include detailed
operated by Tullow.
engineering, installation and integration of topside modules,
Malaysias Malaysia Marine & Heavy Engineering (MMHE),
installation of external turret and power generation, accommodaPasir Gudang, part of the MBO Group, has won two contracts for
tion upgrading as well as extensive piping and electrical cabling
long term conversions, the first involving a tanker to a FSU and
works.
the second from a drilling rig to a mobile offshore production
Scheduled for completion 3Q 2016, the FPSO will have the
unit (MOPU).
capacity to produce 50,000 b/d and 4 MMcm/d of natural gas,
The first contract involves EA Techniques 47,172-dwt, 1996and is expected to be chartered to Petrobras for work on the
built tanker Fois Nautica Tembikai, which will be converted by
Libra field in the ultra-deepwater section of Brazils Santos
MMHE to a FSU for a charter with Petronas for service offshore
Basin. Operating as an early well-test unit, the FPSO will be on
Malaysia. This the second similar conversion carried out by
a 12-year charter once it begins its contract in late 2016.
MMHE for this owner, the Nautica Maua, having been completed
The FPSO unit is expected to be owned and operated by the
in 2013.
joint venture company and will service on the Libra pre-salt field
The second new contract involves Coastal Energys jackup rig
in the Santos Basin offshore Brazil, which is expected to start
EP 7, formerly Hercules 250, which will be converted to a MOPU
operations in late 2016. The block covers approximately 1550sq
over the coming months. This is the third similar conversion
km in around 2000m water depth (6500ft). The reservoir depth
carried out by MMHE for this rig owner over the past few years.
is around 3500m (11,500ft). Brazils ANP has estimated that total
The yard is also carrying out a similar conversion involving the
gross peak oil production could reach 1.4 MMb/d.
jackup rig Rubicon.
22 AOG
aogdigital.com
2/3/15 12:12 PM
e
l
t
w
A
a
M
t
S
Surf Supporter in Batamec Photo by Alan Thorpe.
Shells Stones FPSO, an artists impression. Image from SBM Offshore.
The final stages of a major subsea construction conversion project will also soon be completed at Batamec, part of Otto Marine,
located on the Indonesian Island of Batam. The project involves
the 4863-grt offshore subsea construction vessel Surf Supporter,
which is being extensively modified for a contract with Fugro in
Australia. She is owned by Australias RY Offshore, and managed by Australias Go Offshore, Perth. She was built in Indias
Magazon Dock, Mumbai during 2012 and has been sailing as
the Go Surf until this year, when she arrived in Batamec during
September.
Work to be carried out by Batamec includes the installation of
a deck crane, and accompanying modules, a 15-tonne heli-deck
and side sponson tanks and extensive changes to the accommodation. She was due to leave Batam during November.
During 2014, Singapores PaxOcean has carried out a number
of major conversion projects, one of the most complicated being
the conversion from offshore supply vessel to a specialized
diving support vessel of the Maridive 603. This project was a
fast track project, the vessel redelivered in June. Apart from all
the upgrade equipment, the vessel also had her accommodation increased. The yard also carried out a conversion of the
Greatship Ragini from platform supply vessel to a survey, derrick and geotechnical vessel. This vessel was redelivered during
July.
Mariti
me N
to you ews
Deskt r
o
Subsc p
ribe!
www.v
aisa
knowle la.com/
dge
Reliable Weather Information

for Confident Decision Making
Met-Ocean and Weather Observation Solutions since 1936.
Instrumentation, Systems and Data for
Wind Visibility Cloud height Lightning Temperature Dew point
Barometric pressure Ocean current Wave height Sea level
www.vaisala.com/maritime
Content is copyright protected and provided for personal use only - not for reproduction or retransmission. 28.10.2014 14.15
23
2_WEA-MAR-APAC-Reliable-Weather-ad-EN_Asian-Oil_and-Gas-180x124.indd 1
aogdigital.com
2/3/15 12:12 PM
GEOFOCUS BANGLADESH AND INDIA
AOG staff profiles

the oil and gas
industries in
Bangladesh and
India, and the
challenges therein.
By Mohani Niza
and Audrey Leon
In focus:
Bangladesh
and India
Bangladesh
Confl ict, strife and natural
disasters are common issues facing Bangladesh, a country better
known for its garment industry
than oil and gas output.
According to the US Energy
Information Administration
(EIA), as of 2012, Bangladeshs
primary energy consumption
was an estimated 56% natural
gas, 24% traditional biomass and
waste, 16% oil, 3% coal, and 1% hydropower and solar.
While Bangladesh ranks as seventh largest natural gas
producer in Asia, its energy demand exceeds its capacity. And
currently, 62% of its citizens have access to the power grid.
The EIA states that natural gas production increased by
7%/yr from 2002-2012. However, the country faces supply shortages, especially in the electricity sector, which have led to rolling blackouts. In November 2014, Reuters reported the countrys
power grid failed, triggering a nationwide blackout.
To help reduce the gas shortages, state-owned Petrobangla
signed a preliminary agreement with a US consortium, consisting of Astra Oil and Excelerate Energy, to build the countrys first
offshore LNG import terminal. According to the EIA, Bangladesh
extended a memorandum of understanding signed with Qatar in
2013 and expects to begin importing LNG this year.
Chevron is one of the largest natural gas producers in the
country, and has invested approximately US$1.5 billion in the
country in the last decade. It supplies approximately 50% of
the countrys natural gas consumption.
The US supermajor operates three fields: Bibiyana, Jalalabad
and Moulavi Bazar, in the northeastern Sylhet region through
its subsidiaries, under production-sharing contracts signed
with Petrobangla. In 2013, the company produced a net average
of 663 MMcf/d of natural gas and 2000 b/d of condensate.
In October 2014, Chevron commenced natural gas production
from the $500 million Bibiyana expansion project, located in
Block 12, in the north-eastern part of the country. At the time,
Chevron said it expected the project to increase its operated
natural gas production capacity in Bangladesh to 1.4 Bcf/d, and
boost its natural gas liquids production capacity to 9000 b/d.
The Bibiyana expansion project, which was sanctioned in 2012,
included the installation of two gas processing trains, the drilling
of additional development wells and the addition of an enhanced
liquids recovery facility. The project added additional capacity of
300 MMcf/d of natural gas and 4000 b/d of condensate.
At the time, Melody Meyer, president, Chevron Asia Pacific
24 AOG
Exploration and Production, said of the project: Bibiyana is

the largest producing gas field in Bangladesh and a leading
example of how technology, investment, and expertise can assist countries to utilize domestic resources to secure reliable,
cleaner-burning, and affordable sources of energy.
Bangladesh has had to rely on imports from neighboring India
in order to fulfill its energy demand. In February 2014, it was
reported that state-owned Oil India Ltd. and state-owned Oil and
Natural Gas Corp. (ONGC) were offered two offshore blocks in
Bay of Bengal. Also, Petrobangla sealed a deal two productionsharing contracts (PCS) with them.
India
India ranked as the fourth-largest energy consumer in 2011,
after China, the US, and Russia, according to the EIA. Indias
dependence on imported fossil fuels rose to 38% in 2012, despite the countrys own significant resources.
Like neighbor Bangladesh, Indias energy demand is outpacing its ability to produce its own resources. However,
Indias energy demand far outpaces Bangladesh due to its own
economic growth and modernization efforts. In 2013, the EIA
placed Indias petroleum product demand at 3.7 MMb/d, far
exceeding its own 1 MMb/d of total liquids production.
In terms of natural gas, India ranked as the fourth-largest LNG
importer following Japan, South Korea, and China in 2013, and
it accounted for nearly 6% of the global market, according to IHS
Energy. Most of Indias LNG imports come from Qatar, which
makes up 29% of the countrys 2.1 Tcf consumption. However,
coal still remains Indias primary source of energy.
As of 2014, EIA reports that India had 47 Tcf of natural gas
reserves, mostly located offshore. The two largest state-owned
oil companies, ONGC and Oil India, dominate the countrys
upstream gas sector. In an effort to increase domestic energy
security, ONGC has opted to invest in oil and gas exploration and
production overseas, as well as pursue deepwater and marginal
field development to improve recovery rates of existing fields.
In 2014, ONGCs subsidiary ONGC Videsh purchased 10% participating interest in the Rovuma Area 1, offshore Mozambique,
from US operator Anadarko Petroleum, the acquisition followed
an additional 10% interest that a joint venture between ONGC
Videsh and Oil India purchased in the same block.
ONGC also holds 25% interest in the Poco Verde prospect in
the BM-SEAL-4 block, offshore Brazil with state-owned operator Petrobras. The two recently discovered natural gas at an
extension well in September 2014. AOG
aogdigital.com
024_AOG0215_geofocus.indd 24
2/3/15 12:16 PM
8-11
SEPT
2015
ABERDEEN, UK
FREE TO ATTEND
EXHIBITION AND
CONFERENCE
OFFSHORE-EUROPE.CO.UK
SPE Offshore Europe

CONFERENCE & EXHIBITION
HOW TO INSPIRE
THE NEXT GENERATION
MEET FACE-TO-FACE WITH 1,500 EXHIBITORS
ACCESS NEW TECHNOLOGIES ACROSS
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to view what is new on
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ENGINEERING MANAGER,
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PAVILIONS
AOG .indd 5RXOE7255 OE - Asian Oil and Gas v1.indd 1
Photo Credit: Expro
Organised by:
2/3/15 2:1909:40
PM
21/01/2015
Solutions
Honeywell unveils new sensors line

Honeywells City Technology unveiled the 4OxLL long-life oxygen sensor and other
new emissions sensors, at the MICONEX show in Beijing, China, 23-26 September.
The range includes new premium sensors for high-end flue gas analyzers and sensors for combustion efficiency instruments used in installation and service applications. The sensors are designed to ensure the highest levels of repeatability, stability
and accuracy along with fast response times.
Wilson Tan, City Technologys business leader in APAC, said: Protecting workers
from oxygen depletion and the hazards of toxic and flammable gases is a continuous
challenge. Companies must not only maximize safety and adhere to stringent regulations, they must also leverage operational cost efficiencies. Selecting the right gas
sensing solution is critical. The new RoHS compliant 4OxLL redefines oxygen sensing
for industrial safety with unsurpassed stability in challenging environmental conditions, minimized nuisance alarms and extended operational life. www.citytech.com
Microsesimic releases
PermIndex tool
MicroSeismic, Inc. released PermIndex,

a proprietary microseismic-based permeability tool to maximize recovery. PermIndex provides permeability estimates for
each frac stage and data-driven constraints
to reservoir simulation to enable operators
to improve production forecasting and
estimated ultimate recovery (EUR).
Microseismic has performed hydraulic
fracture monitoring and completions evaluation on several wells in Australias Cooper
Basin. As part of the interpretation, a
geocellular stimulated rock volume is computed, where each cell contains a non-zero
fracture flow property. Then, MicroSeismic
clients using Permeability Scalar are able to
capture the fracture intensity at any given
point in space, providing a realistic estimate of variations in system permeability
26 AOG
power project sizing software. Power

Suite now features two new sets of tools,
GenCalc and GenSpec, as well as updates
to GenSize with additional project and
load parameters to optimize project
sizing and product recommendations.
GenCalc and GenSpec are new tools
designed to help streamline workflow by
calculating an additional range of project
parameters and generating specification content based on existing GenSize
project data, as well as for automatic
transfer switches and paralleling systems.
Project calculations, including ventilation, short circuit, exhaust back pressure,
remote cooling and fuel pipe sizing, can
be accessed directly after sizing a project.
GenSpec can import data from GenSize
projects, or it can be used on its own to
create specification content ready to place
in proposals and submittals.
Also included in this release are important updates to regional and geographic
settings within the program.
www.cumminspower.com
in the volume impacted by the hydraulic

fracturing process. The production productivity log allows operators to understand
the productivity potential of each stage.
PermIndex provides estimates of bulk
permeability using the radial pressure
fronts of microseismic events during
hydraulic fracturing to calculate effective system permeability. Together, the
new Permeability Scalar and production
productivity log included in the PermIndex service allow reservoir engineers to
quickly and accurately achieve history
matching with estimation of drainage volume and EUR and are both available on a
stage-by-stage basis.
www.microseismic.com
Cummins launches updated

Power Suite software
Cummins Power Generation launched

the latest version of its Power Suite
Bestobell Marine valves head

to Chinese yard
Bestobell Marine
secured a contract
with Hudong Zhongua
shipyard in Shanghai
to supply cryogenic
globe and check
valves and Bestobells
unique float-level
insulation valves (FLIV) for use on the
four Teekay shipping vessels to be
chartered by BG Group.
This latest order takes the total number
of Chinese vessels using Bestobells valves
to 14, helping the company secure its
position as a major supplier of cryogenic
globe and check valves for liquefied natural gas carriers (LNGC) in China.
This latest contract follows on from
two separate Chinese contracts in the past
two years, including the supply of valves
to four Mitsui O.S.K Lines (MOL) vessels to be chartered by Exxon Mobil, and
six China Shipping / MOL vessels to be
chartered by Sinotrans for their Australia
Pacific LNG project.
www.bestobellvalves.com
aogdigital.com
026_AOG0215_Solutions.indd 26
2/6/15 8:37 PM
Activity
DNV GL opens Nanjing office
DNV GL has opened up a new office in Nanjing to be the
center for operations in Central China.
Headed by Area Manager Chen Keng, DNV GL Central
China covers most of the Jiangsu Province and follows
the Yangtze River upstream to Chongqing and Sichuan.
DNV GL has been involved in many advanced newbuilding projects in China, such as 10,000 TEU container
ships, 25,000 DWT Duplex chemical tankers, high-end
OSVs and multi-purpose dry cargo vessels.
Central China is home to dozens of shipyards, many
industry manufacturers and is therefore one of the most
important areas for DNV GL to focus on in China, says
Torgeir Sterri, DNV GL VP and regional manager for
greater China. More expertise and competence in all
ship types and offshore units as well as a strong focus on
CSSC AND WRTSIL

FINALIZE JOINT VENTURE
The agreement to take over Wrtsils
2-stroke engine business between Wrtsil and China State Shipbuilding Corp.
(CSSC) is fi nalized. The company will be
renamed Winterthur Gas & Diesel Ltd.
(WinGD), and will be owned 70% by
CSSC and 30% by Wrtsil.
The head office of WinGD remains in
Winterthur, Switzerland, with the company having subsidiaries in China, South
Korea and Japan.
DNV GL celebrates the opening of its new office in

Nanjing, China. Photo from DNV GL.
research, technology and innovation enables DNV GL to support the transformation and development of Central Chinas
maritime industry more effectively.
The required government and merger

control approvals were been received,
and official closing took place on 19 January 2015.
ARAMCO ASIA INAUGURATES

SINGAPORE OFFICE
Aramco Asia recently inaugurated
Aramco Asia Singapore, as part of its
ongoing expansion in Asia, to provide
crude oil marketing, material sourcing,
supply chain logistics, inspection and
other engineering services.
Australasian Oil and Gas exhibition returns in March

For over 30 years, the Australasian Oil
and Gas (AOG) Exhibition and Conference
has brought industry expertise to thousands of attendees.
We expect this years event to be the
biggest in the shows 32
year history, says AOG
Event Director at Diversified Communications,
Bill Hare. We are catering for more
exhibitors (more than 620 companies),
more countries participating (more than
22), an increase in attendees (more than
17,000) and more networking events.
A new edition in 2015 is the inaugural
Africa Oil and Gas Forum to be held on
Tuesday, 10 March, which will highlight
the prolific plays on both the east and
west coasts of Africa. Talks will focus on
market trends, offshore exploration and
production technology and logistics, local content requirements, and workforce
development. AOG will also feature an
international pavillion including the

UK, Norway, US, China, Italy, Canada,
Belgium and Singapore.
The conference begins Wednesday, 11
March, with two tracks, the first focused
on Australian industry
participation including
local content and how to
manage contractor health
and safety. The second track delves into
subsea with new trends in flow assurance,
inspection maintenance and repair best
practices. Day one also includes morning
sessions on exploring subsea contracts
and creating, extending and mending
subsea systems. In the evening, take a look
at the subsea market outlook, and riser
systems. Day two includes discussions
on human capital, FLNG, asset integrity,
subsea controls, and pipeline design and
installation.
The Australasian Oil and Gas conference
and exhibition runs 11-13 March at the
The inauguration of Aramco Asia

Singapore underlines the importance of
Singapore as the regions premier hub for
oil and gas, as well as a regional base for
the Southeast Asia region, says Fouad
Al Rammah, representative director of
Aramco Asia Singapore
Asia is a key strategy and focus for us
as part of our transformation efforts to
become a leading global and integrated
energy and chemicals company by 2020,
says Ibrahim Al-Buainain, president of
Aramco Asia.
Perth Convention Exhibition Centre. Find
more information on conference topics and
how to register at aogexpo.com.au.
AOG Conference 2014 show floor at the

Perth Convention and Exhibition Centre.
The official show dinner at the AOG

Conference 2014. Photos from Australasian Oil &
Gas Exhibition Facebook page.
aogdigital.com
027_AOG0215_Activity.indd 27
27
2/3/15 12:18 PM
Spotlight
Bumis Basma steps down
Hassan Basma, the CEO and executive director of Bumi Armada Berhad
is leaving the company for personal reasons. The board of directors
agreed to Basmas request for an early release of his contract effective 1
January 2015.
In addition, Basma will relinquish his directorships in other companies within Bumi Armada Group, but will continue to be a consultant to
the company when necessary.
Bumi Armada is taking steps to search for a new CEO. During that
time, Chan Chee Beng will be acting CEO and executive director.
Chan has been a member of the board since 2004, a member of the
executive committee of Bumi Armada since 2008, acting as its chairman from 2013.
Bumi says that Chan will work closely with, and provide leadership to
the management team, to ensure continuity of relationships with the
companys key clients and other stakeholders, and delivery of existing
projects.
FOSNAVAAG APPOINTED
HEAD OF HAVYARD FAR EAST
Havyard is increasing
its focus on Asia by
appointing Hallvard
Fosnavaag as head of
Havyard Far East.
Fosnavaag will be
responsible for the
markets in Asia (with
the exception of
China) and the Middle East.
Fosnavaag is a qualified ships master
and has sailed several types of offshore
vessels, most recently the EMASowned cable-laying/construction vessel
Lewek Connector. Before that, he was
inspector for the shipping company
during the building of the vessel in
Norway. Fosnavaag has also worked in
offshore vessel operation for several
Norwegian shipping companies, including as operations manager in Siem
Offshore.
Fosnavaag will move to Singapore and
use Havyard Far East as his base. From
there, he will serve customers in Singapore and the rest of the market, supported by Havyards organization in Norway.
BIBBY NAMES INTERIM

MANAGING DIRECTOR
UK-based Bibby Offshore has appointed
Pete Hughes Interim Managing Director,
28 AOG
Asia Pacific, effective immediately.

Hughes currently serves as Bibby Offshores Strategic Delivery Director and
takes over the role from Darren Morgan
who has left to pursue opportunities
outside the group.
Fraser Moonie, Chief Operating Officer
(East), commented: I would like to welcome Pete to this important role within
Bibby Offshore and to thank Darren for
his contribution to growing the Bibby
brand in the region
over the last three
years.
We are committed to supporting
the Asian market
and providing a high
quality service to
our clients, utilizing
our project management experience in
subsea construction and further growing our business throughout the region.
Malcolm Rennie, currently Bibby
Offshore Singapores ROV Manger, has
been appointed General Manager in the
region.
AGILITY APPOINTS
POULSEN CHINA CEO
Agility has appointed Soren Poulsen as
CEO for the Greater China Area (GCA).
In this role, Poulsen will be responsible
for leading Agilitys Global Integrated Lo-
gistics business in
China, Hong Kong,
and Taiwan.
Soren joins
Agility with more
than 25 years of
experience in the
logistics industry.
He has extensive
experience and knowledge in particular in the China market, having spent
more than 10 years of his career in
management positions in the country. At the beginning of his tenure
in China, Soren managed air freight
operations out of Shanghai and North
China, while the past six years focused
on general management in South China
and development of major international
and Chinese customers. During Sorens
more than 13 years in Asia, he also
spent time in India and Singapore.
Prior to joining Agility, Poulsen was
the Managing Director for DB Schenker Hong Kong and South China. He
was previously the Vice President of
Airfreight for Asia Pacific in Schenker
and has also held various management positions at Kuehne + Nagel and
Panalpina.
A native of Copenhagen, Denmark,
Poulsen is a graduate of the Maersk
Shipping Academy, and will be based in
Hong Kong.
aogdigital.com
028_AOG0215_Spotlight.indd 28
2/3/15 12:19 PM
Ad Index
lagcoe.com
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ASIAN OIL & GAS
Advertising sales
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Global Collaboration
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LAGCOE proudly celebrates 60 years
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October 27-29, 2015 | Lafayette,Louisiana USA
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Numerology
8.9 MTPA
The capacity of Wheatstones two

LNG trains. See page 4.
Image from Chevron.
US$19billion
The maximum operating temperature down

to which the North Dragon Arctic-ready
semisubmersible can work.
See page 8.
-25C
11,000
line-km
8038m
2035
The area being surveyed by CGGs FALCON

Airborne Gravity Gradiometer technology
over Papua New Guinea. See page 9.
The depth of the deepest onshore well

in China, the Keshen-902 appraisal well.
Source: China National Petroleum Corp.
The year natural gas demand in Southeast Asia is set to increase

to 250 Bcm. See page 10.
80 billion bbl
165,000b/d
Russias oil reserves, according to 2013

estimates by the US Energy Information
Administration. See page 14.
The production rate from the Banyu Urip field in Indonesia.

See page 20.
30%
30 AOG
The cost of ExxonMobils PNG LNG project.

See page 5.
The percentage of global petroleum production

that are produced by FPSOs. See page 12.
aogdigital.com
030_AOG0215_Numerology.indd 30
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ASIAN OIL & GAS

January - February 2015

GHOST - image by James P. Blair/National Geographic/Getty Images

10 Demand in Asia dictates project viability

driving the future of oil and gas production.

14 Service during sanction

18 The value of good guidance for safe and

Chris Charman highlights IMCAs role on safety and injury

24 In Focus: Bangladesh & India

Conference returns for a 2015 edition.

This month AOG features the

ASIAN OIL & GAS

Atlantic Communications LLC

NEARS HALFWAY MARK

IN GORGON LNG CONTRACT

transporting the second cargo of LNG.

HPHT and standard pressured wellhead

PLANS 30-WELL CAMPAIGN

coverage. The Sidewinder North is 14,726

Papua New Guinea

SIGNS PNG LNG MOU

20 years to support government plans to

ROSNEFT BEGINS EXPERIMENTAL

IN NEW LIFTBOAT ORDERS

improve the utilization of

consortium partners, signed

The Atwood Mako is currently working offshore

The 12,000 BHP,

diverter control system for China based

COSCO DELIVERS NEPTUNO

COMPLETES ARCTIC SEMISUB

Cosco (Nantong) Shipyard Co. delivered

EFC COMPLETES DALIAN ORDER

Geology & Geophysics

production. They will cover the majority

over and adjacent to the Phoenix South-1

Polarcus Capreolus 3D multi-client proj-

of the four exploration permits making up

oil discovery which is estimated to con-

ect over the Phoenix area in the Rose-

the Phoenix area: WA-435-P, WA-436-P,

tain up to 300MMbbl in place.

buck basin, offshore Western Australia.

WA-437-P and WA-438-P.

The survey is using two high-perfor-

The data acquisition phase is esti-

The Capreolus 3D multi-client project

mated at approximately eight vessel

mance, 12-streamer Polarcus vessels,

comprises a substantial 15,000sq km and

months (four calendar months), with

Polarcus Amani and Polarcus Asima, op-

has been designed to provide a basin-wide

final data products expected to be avail-

erating in tandem in order to maximize

high quality broadband 3D seismic dataset

able within 2Q 2016.

Polarcus Asima. Photos from Polarcus.

GARDLINE CGG GETS

qualified category (C2) to the commercial

CGG WINS PAPUA

The 2D conventional land seismic

ABBs Will Leonard looks at how

dictates project viability