Asian Oil and Gas-July-August 2015

ASIAN OIL & GAS
July-August 2015
AOG
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EPCIC challenges
offshore Myanmar
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Qatar to face rising

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Contents
EDITORS COLUMN
5 2Q 2015 losses and cutbacks

A review of 2Q 2015 net losses and further spending cuts
announced by international oil and gas companies also
focused in Asian explorations.
10
REGIONAL UPDATES
6 Briefs
PetroVietnam and Murphy Oil to jointly explore oil and
gas reserves in Vietnam and more news from Australia,
China, Indonesia, New Zealand, Philippines and the
Middle East.
FEATURES
10 Filipinos still in demand abroad
12
Mature markets in the Middle East and Asia continue

to have a steady demand for Filipino oil and gas
professionals.
12 Making the most of M.O.S.T.

Weatherfords Cham Soon Hoe and Aung Din explain
how operators in Vietnam and Australia have benefited
from the Mechanical Outside-Latch Single Trip (M.O.S.T)
system during subsea well abandonments.
14 Qatar LNG challenged

With more competitors entering the global gas market,
Qatars LNG exports to Asia could be further tested.
Audrey Raj reports.
16 Fabrication scales new heights

Singapore-headquartered TRIYARDS continues to expand
its fabrication expertise. Audrey Raj explains.
18 COOEC goes international

Audrey Raj speaks with COOEC about the groups fi rst
international EPCIC project challenges and more.
16
GEOFOCUS: CHINA
20 Protecting IPR in China

To remain competitive in the Chinese market, foreign oil
and gas enterprises must protect their intellectual property
rights in China, explain Brad Chin and Kevin Tamm of
Bracewell & Giuliani LLP.
24 China eyes Russian reserves

Russias decision to allow Chinese investors acquire
controlling stakes in its oil and gas fields come with
potential risk. Eugene Gerden investigates.
PRODUCTS & TECHNOLOGY
26 Solutions
New tools and software to improve performance,
production, and modeling.
SPOTLIGHT
27 Powering energy management
COMPANY NEWS
28 Activity
OneSubsea and Subsea 7 inked an agreement to jointly
deliver integrated subsea development solutions, plus
other regional news.
FACTS & FIGURES
30 Numerology
AOG
ASIA
IL
N O
AS
& G
On the cover
5
ust 201
July-Aug
al.com
aogdigit
David Farmer, Eatons vice president of global projects for

oil and gas discusses energy efficient alternatives for oil
and gas sustainability in Southeast Asia.
Onshore construction of the

Zawtika EPCIC project is in its
fi nal stages, preparing for offshore installation at COOECs
Tanggu fabrication yard featured in this issues cover.
18.
Read more on page 18
COOEC.
Photo from COOEC
ges
18
challen
EPCIC
nmar page
re Mya
offsho
rising
ce
fa
to
page 14
Qatar
ion
tit
mpe
LNG co
A capsule view of interesting industry statistics.
July August | AOG
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Editors Column
2Q 2015 losses and cutbacks
A
lthough consumers around the world have welcomed the
recent slump in oil costs, as prices stay low it is continuing to hurt oil and gas explorers, as drilling operations become
more unprofitable.
As AOG goes to press, several international oil and gas
companies also involved in Asian explorations announced 2Q
2015 net losses and cutbacks to stay afloat the sinking environment.
US-based Murphy Oil reported a net loss of US$73.8 million in 2Q 2015, down from net income of $129.4 million in
2Q 2014. The firm, which is also focused in Southeast Asian
exploration, said loss from continuing operations this quarter
was $89 million, compared to a profit of $142.7 million earned
in 2Q 2014.
In Malaysia, during 2Q, Murphy completed a five-well drilling program at the Belum field in shallow water offshore Sarawak, and spud oil wells at the Permas shallow water development. Murphy is looking to tap into Vietnamese reserves with
PetroVietnam to jointly develop the Block B gas project in the
Malay Tho Chu basin and some blocks in the Cuu Long basin.
Canada-headquartered Husky Energys profit plunged approximately 80% in 2Q 2015, due to weaker Canadian dollars,
lower oil price and corporate tax hike, the company said.
Net earnings were CA$120 million, compared to CA$628
million a year ago, while cash flow from operations were
CA$1.2 billion, as opposed to CA$1.5 billion in 2Q 2014.
According to CEO Asim Ghosh, Husky drew strength from
its diverse portfolio and fixed-price gas sales in the Asia Pacific region this quarter. Combined gross gas sales volumes from
the groups Liwan gas project offshore China, including the
Liuhua 34-2 field, averaged 295 MMcf/d, up about 13% from
1Q 2015. Husky is on track to achieve its CA$400-600 million
target in cost savings this year, with approximately CA$575
million locked in to date.
Supermajor Royal Dutch Shell, operator of the Gumusut-Kakap development in Malaysia, earned $3.4 billion in 2Q 2015,
compared to $5.1 billion same time last year.
Whereas its Gumusut-Kakap joint venture partner, Houstonheadquartered ConocoPhillips reported a net loss of $179
million in 2Q 2015, compared with 2Q 2014 earnings of $2.1
billion. ConocoPhillips will lower 2015 capital expenditure
guidance from $11.5 billion to $11 billion and operating cost
guidance from $9.2 billion to $8.9 billion.
On the other hand, Shell said it would cut 6500 jobs as part
of cost cutting plans, plus reduce about $7 billion in capital
investment, all so to prepare for the prolonged downturn.
US major Chevron, which also partners with Shell in the
Malampaya deepwater gas-to-power project in the Philippines,
plans to axe 1500 jobs to slash cost by $1 billion.
Chevrons earnings for 2Q 2015 were $571 million, while 2Q
2014 saw an income of $5.7 billion. Sales and other operating
revenues were $37 billion, compared to $56 billion a year ago.

Chevron has been moving to shed assets in the region. In
March, Chevron completed the sale of the companys 50%
interest in Caltex Australia, and followed that sale in June by
shedding its Vietnamese assets, which included acreage off
the countrys continental shelf and an offshore pipeline project, in a deal struck with PetroVietnam. Last year, Chevron
opted to sell its Cambodian subsidiary to Singapores KrisEnergy for $65 million.
Chevron CEO John Watson noted that the upstream business
was particularly hit hard, as lower prices reduced revenues
and triggered impairments and other charges.
Were getting our cost structure down, through renegotiations across the supply chain and by sizing our contractor and
employee workforce going forward. Project execution on the
Gorgon and Wheatstone Australian LNG projects is a priority
for us, Watson said.
Despite the sharply lower oil price, Frances Total had a net
income of $3.1 billion, a decrease of only 2% compared to the
same period last year. The group expects to exceed its 2015
objective to cut operating costs by $1.2 billion in 2015 and
reduction of 2015 capex to $23-24 billion.
Since the beginning of 2Q 2015, Total started first production at the Termokarstovoye gas field in Russia, achieved
positive appraisal of the Elk-Antelope gas fields in Papua New
Guinea, plus opened its new lubricant plant in Singapore.
In Russia, UK supermajor BP has also made some progress.
In June, an agreement was inked to purchase 20% interest in
Rosnefts Taas-Yuryakh Neftegazodobycha (Taas) subsidiary,
creating a new joint venture in East Siberia.
However, BP reported a replacement cost loss for the quarter
of $6.3 billion, citing low oil prices and settlement charges related to the 2010 Deepwater Horizon oil spill, which occurred
in the US Gulf of Mexico. AOG
Audrey Raj
Editor
July August | AOG
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July
August 2015
AOG
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Regional Briefs
TRANSERV SET TO
SPUD WARRO FIELD
Transerv Energy is set to drill the
onshore Warro gas field, which aims to
unlock 8-10 Tcf of potential gas reserves.
Located 200km north of Perth, Warro
is 30km from the Dampier-to-Bunbury
and Parmelia pipelines, which will carry
gas into Western Australias southwest
gas market.
Warro-5 and Warro-6 wells will be
drilled 3.5km to the south and 1.5km
southwest, respectively, of the previous wells on the giant Warro field to
4250mRT total depth.
AWE REDUCES YOLLA RESERVES
New data obtained from the recently
drilled Yolla-5 and Yolla-6 development
wells has resulted in a reduction in the
estimated original gas in place for the
Yolla field, says operator Origin Energy.
Joint venture partner, AWEs managing
director Bruce Clement, says the updated
reserves at Yolla will result in less gas
production later in the field life.
But overall it is not expected to have
a material impact on production or cash
flow during the next three to four years,
he says.
AWE has chosen to adopt the preliminary reassessment of the operator and reduce its share of 2P reserves for the Yolla
field by 5.5 MMboe, down to 13 MMboe.
China
CHINESE YARD BAGS UAE ORDER
Chinese shipbuilder, SINOPACIFIC
Shipbuilding Group won the bid for the
construction of nine anchor handling tug
supply (AHTS) vessels from Abu Dhabi
National Oil Co. (ADNOC) and its wholly

owned subsidiary, ESNAAD.
The winning design was the SPA80A,
which is an AHTS with electric propulsion system and a bollard pull of 80mt
designed by Shanghai Design Associates,
the SINOPACIFIC OSV design team.
All nine vessels scheduled for delivery in 2017 will be able to operate under
complex conditions of shallow water,
high salinity, high temperatures and
high humidity in the Persian Gulf.
SINO GAS TO
COMMISSION FIRST GAS
Construction of the Linxing Central
Gathering Station (CGS) is now complete and commissioning of first gas is
expected to kick-start, reports Sino Gas
and Energy.
This includes gathering lines for the
first batch of seven wells to be tied into
the Linxing CGS, including TB-1H the
first horizontal well drilled in 2013 and
tested in 2014 at a rate of 4.93 MMscf/d.
Pilot gas sales from the Linxing CGS
are anticipated to commence following
completion of commissioning activities.
CNOOC STARTS LUDA 10-1
Production has commenced at the Luda
10-1 comprehensive adjustment project,
in Liaodong Bay of Bohai.
The Luda 10-1 oil field sits in water approximately 30m deep.
In addition to fully utilizing the existing facilities of Luda 10-1, this adjustment
project has also built one wellhead platform. There are currently 13 producing
wells producing approximately 3300bo/d.
The adjustment project is expected
to reach peak production of 6000 b/d in
aogdigital.com
August 2015
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2016. CNOOC operates Luda 10-1 with

100% interest.
Indonesia
LION TO COMMERCIALIZE
GAS FIND
Lion Energy is looking to commercialize its Lofin-2 gas discovery at the Seram
(Non Bula) production sharing contract
(PSC) in Eastern Indonesia.
The Seram joint venture has suspended
the Lofin-2 appraisal well, that flowed gas
at about 17.8 Mcf/d, as a potential producer.
Results exceeded pre-drill expectations and confirmed a material discovery
for the company even with its 2.5% stake
in the Seram PSC.
COOPER REVISITS SUMATRA
DRILLING PLANS
Cooper Energy has rescheduled its
drilling plans for the Sukananti KSO
in South Sumatra, Indonesia, which
comprises of the Sukananti, Bunian and
Tangai fields.
The firm says the decision was made
to prioritize drilling of the Bunian-4
appraisal well, plus focus on appraisal
of the Bunian field reserves, which has
been identified to be hydrocarbon rich.
This includes the deferment of the
Tangai-5 development well drilling,
which had originally been scheduled to
follow Bunian-3.
Bunian-4 will be drilled on a deviated
trajectory to a subsurface target 380m
from the surface location and 450m from
the Bunian-3 ST2 subsurface location at
the top of the TRM3 sandstone.
India
BG INDIA IN MUKTA-B PAYDAY
BG India achieved first oil production
from Mukta-B, a four-legged wellhead
unmanned platform in the offshore
Bombay basin.
BG alongside partners, Oil and
Natural Gas Corp. (ONGC) and Reliance
Industries are developing the PannaMukta oil and gas fields through well intervention and infill drilling campaigns.
Pipelines have also been successfully
completed as part of the project.
L&T WINS ONGC EPCI
Mumbai-based L&T Hydrocarbon
Engineering bagged an offshore contract
from Oil & Natural Gas Corp. (ONGC)
valued at 2715 crores (US$420 million).
It encompasses the engineering,
procurement, construction and installation (EPCI) for the Bassein development
project offshore India.

The work scope includes one process
platform, compression facilities, one
nine-slot wellhead platform, topside
modification on existing platforms, associated subsea pipelines and one living
quarter platform in the Bassein field.
Malaysia
MEO, BROOKE IN MALAYSIAN E&P
MEO Australia and Brooke Dockyard and
Engineering Work Corp.,will jointly bid on
oil and gas exploration opportunities within Sarawak and the whole of Malaysia.
Under the agreement, MEO will provide technical and evaluation assistance
to Brooke, and in return Brooke will
fund the evaluation activities and the
exploration component of the joint bids.
At this initial stage, under the agreement, Brooke will have a 75% participating interest and MEO a 25% participating interest.
Brooke will bring Malaysian content
to MEO having access to local fabrication and construction capability, for both
onshore and offshore facilities.
Middle East
VALLIANZ WINS
MIDDLE EAST OSV
Vallianz Holdings has signed new
contracts valued up to US$458 million
with a national oil company (NOC) in the
Middle East.
This will see the Singapore-based firm
lengthen the charter duration for 19 of
its offshore support vessels currently
deployed to this repeat customer.
It includes 15 anchor handling tug
supply vessels and four platform supply
vessels (PSV), which will continue to be
used by the NOC until June 2018, with an
option to extend for two more years until
June 2020.
This follows the companys $300 million deal to supply two self-elevating
platforms to be deployed from 3Q 2015
for a period of five years with another
Middle Eastern NOC.
New Zealand
MOSMAN OPERATIONS UPDATE
Mosman Oil and Gas provides operations
update of its Murchison, Petroleum Creek
and Taramakau permits in New Zealand.
Land access agreements are in progress with the Tasman District Council for
the Murchison permit, the firm says.
Geology and engineering works are
currently in progress, and the well
design is being finalized as a 1200m
vertical well.
There are a series of formalities and
approvals to be completed before drilling, which is still anticipated in 2015,
conditional on a number of matters,
including funding.
The Petroleum Creek permit has significant potential, with focus now on the
larger deeper structures.
Drilling and flow tests on the Crestal
area demonstrated oil generation and
migration. The core data provided information on the Cobden Limestone, and
confirmed the reservoir properties.
The Taramakau permit surrounding
Petroleum Creek shares similar geological
characteristics, and prospective play types.
Next round of seismic acquisition is scheduled for later this year or early next year.
Philippines
MAERSK VENTURER HEADS TO
PALAWAN
Drillship Maersk Venturer will mobilize
to the Hawkeye-1 exploration well, offshore Palawan basin in the Philippines.
Contracted by field operator Otto
Energy, the ultra-deepwater drillship
will begin mobilization 31 July, according to joint venture partner, Red Emperor
Resources.
Red Emperors managing director,
Greg Bandy says, this positive progress
would make the next few months very
exciting for shareholders, and we can
expect Hawkeye-1 to spud early August.
Currently stacked in Labuan, Malaysia,
Maersk Venturer will take less than a
month to drill the well.
Malaysia
STEEL CUT FOR PETRONAS FLNG 2
Malaysian oil major PETRONAS celebrated the official steel cutting of its second
PETRONAS floating liquefied natural gas
(PFLNG 2) facility, designed for the Rotan
field, 130km offshore Sabah in Malaysia.
To be built at the Samsung Heavy
Industries (SHI) shipyard in South Korea,
the steel cutting signifies the beginning
phase of the hull and topsides of the

PFLNG 2 with a weight of 152,000 tonne.
Designed for deepwater operations in
water depths ranging from 500-1500m,
PFLNG 2 will have a production capacity of
1.5 MTPA and house up to 150 personnel.
The Block H project in Rotan field
offshore Sabah is sanctioned by operator
Murphy Oil and PETRONAS.
July August 2015 | AOG
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8/5/15 11:25 PM
NIDO SHOWS GALOC

RESOURCE ESTIMATES
Nido Petroleum has released the results
of an independent contingent resources
assessment of the mid-Galoc area of the
Galoc oil field in the northwest Palawan
basin, offshore Philippines.
Independent assessment by Gaffney
Cline and Associates (GCA) estimates
area to contain 1C contingent resources
at 6.2 MMstb on a gross basis.
The 2C and 3C gross contingent resource estimates are 9.5 MMstb and 14.6
MMstb, respectively.
For Nido, independent contingent
resources estimation is a key milestone
in the plan to develop the mid-Galoc area
of the field. The firm has 55.88% working
interest in the Galoc oil field.
Russia
ROSNEFT, STATOIL DRILL
NORTH KOMSOMOLSKOYE FIELD
Rosneft and Statoil completed drilling
works, as part of the pilot project at the
PK1 layer of the North-Komsomolskoye
field onshore Russia.
The North-Komsomolskoye oil and
gas condensate field is located in the
Purovsky and Nadymsky regions of the
Yamalo-Nenets Autonomous District.
It has complex geology associated with
an oil rim of highly viscous oil, as well
as an extensive gas cap. Rosneft and
Statoil implemented extended logging,
including core and fluid samplings.
Also, for the first time onshore in
Papa New Guinea

HERITAGE FINDS
NO GAS AT KWILA-1
Kwila-1 exploration well in PPL 337 in
Papua New Guinea (PNG) was drilled at
a depth of 3281ft and wireline logs have
been run, according to joint venture partner Kina Petroleum Ltd (KPL).
A number of porous, deepwater sandstones were intersected but no moveable
gas was observed. There were no zones
that warranted testing within the drilled
section of the well.
However, slightly higher gas saturations were noted within the deeper sands
and may be the cause of the anomaly
recognized on seismic data and previously
thought to be a hydrocarbon effect.
Kinas managing director, Richard Schroder says, Kwila-1 and Raintree-1 were the
first wells drilled in North Guinea for over
22 years. Both wells drilled independent objectives and have advanced our knowledge
of the petroleum play in this basin.
Russia, a well was completed using

openhole gravel packing in a horizontal section of 1000m.
Rosneft and Statoil plan to hold wells
testing and determine further prospects
and methods of PK1 layer development
based on the testing results.
Implementation of the project may
allow effective development of about 544
million tonne of geological oil in place
at the North-Komsomolskoye field in the
short term.
PETROVIETNAM, GAZPROM
BOOST COLLABORATION
PetroVietnam and Russian energy company Gazprom inked an agreement to
jointly develop Nagumanovskoye and
Severo-Purovskoye fields in Russia.
The Nagumanovskoye field in the
Orenburg region has 5.8 Bcm ofproven gas
reserves and approximately 1.6 million
ton ofrecoverable condensate reserves and
960,000 ton ofrecoverable oil reserves.
The Severo-Purovskoye gas and condensate field in the Yamal-Nenets area
has 45.5 Bcm ofgas reserves and approximately 6.8 million ton ofrecoverable
condensate reserves.
Singapore
KEPPEL INKS GOFLNG CONVERSION
Keppel Shipyard has signed its third contract with Golar Gandria worth approximately US$684 million for conversion
works.
This will see Keppel Shipyard convert
Golars Moss type liquefied natural gas
(LNG) carrier, the Gandria, into a Golar
Floating LNG (GoFLNG) facility.
GoFLNG Gandria will be delivered
approximately 31 months after Keppel
Shipyard receives a notice to proceed,
which is expected to be in 2016.
UK-based Golar LNG CEO, Gary Smith
says Keppel has previously performed
the conversions of three LNG carriers to
floating storage and regasification units
for the firm. We are now on track to repeat that success in our floating liquefaction efforts as well.
VIKING WINS LAND RIG CHARTER
SGX-listed Viking Offshore and Marine
has secured a 48-month charter for a second land drilling rig system for approximately US$31 million.
Vikings subsidiary Viking LR2 Pte
Ltd., will charter the 1500 bhp train type
land rig and related drilling equipment
system to a Chinese land rig specialist.
It will be immediately deployed on a
North African oil field concession jointly

owned by a South Asian energy operator
and the local energy authority.
Viking had acquired from and leased
back its first land rig in September 2014
to the same charterer, which used it to
uncover natural gas.
After positive assessment of hydrocarbon
potential in the locality, the second rig was
chartered to accelerate drilling activities.
The second charter enhances our
portfolio of earnings-accretive assets in a
market environment of low oil prices. We
intend to capitalize on our track record
to build up our charter fleet to enhance
shareholder value, executive director
Daniel Lin says.
Thailand
MUBADALA IN NONG YAO PAYDAY
Mubadala Petroleum commenced oil production from the Nong Yao field offshore
Thailand.
Nong Yao is located in the G11/48 license
in the southern Gulf of Thailand, about
165km off Thailand in 75m water depth.
Production at Nong Yao is expected
to reach a peak rate of approximately
10,000 b/d, as more production wells are
completed.
Proved and probable reserves contained in Nong Yaos primary reservoirs,
and recoverable by water injection are estimated to be in the order of 12.4 MMbbl.
The facilities comprise a wellhead-processing platform (WPP) and a minimum
facility wellhead platform (WHP), with
crude export via a floating storage and
offloading (FSO) vessel. The facilities
have production capacity of up to 15,000
b/d of oil and 30,000 b/d of fluids.
Vietnam
MURPHY EYES VIETNAM
PetroVietnam and Murphy Oil signed an
agreement to jointly develop oil and gas
projects in Vietnam and the US.
Senior officials from both enterprises got
together at the US Chamber of Commerce
to discuss potential opportunities.
Murphy which is involved in
field operations in Southeast Asia,
Australia, the Gulf of Mexico and the
Mediterranean is now looking to tap
into Vietnamese reserves.
The international oil major is particularly keen to participate in the development of Block B gas project in the Malay
Tho Chu basin and some blocks in the
Cuu Long basin south of Vietnam, while
PetroVietnam has interest in Murphys
Gulf of Mexico projects.
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Filipinos still
in demand abroad
Mature markets in the
Middle East and Asia
continue to have a steady
demand for Filipino oil and
gas professionals.
By Audrey Raj
ilipino oil and gas workers are still very much in demand among international oil majors, despite the market
downturn.
According to recruitment specialist, Orion Group, the demand for skilled Filipinos has increased over the years, and
now they can be found in almost every country, including
Russia and the Middle East.
Although Philippines is another fast growing economy in
Asia, Orion says unemployment among the locals still remains
high, due to a shortage of domestic work opportunities.
To find out more, AOG interviewed the founder of Filipino
International Professionals (FIP), Victor Cabiles, and Rowena
Espiritu-Gaspar, Air Energis country manager for Singapore
and contract recruitment manager for Asia Pacific.
Currently residing in Pennsylvania, Cabiles is originally
from the Philippines. He is also director of international
relations at the Southpointe Marcellus Shale Chamber of
Commerce.
Having been with Air Energi for 14 years, EspirituGaspar leads the contract recruitment team in the Asia
Pacific region, plus is responsible for ensuring growth
and profitability in Singapore.
Whats your view on the demand
for oil and gas Filipino workers overseas?
Espiritu-Gaspar: Over the last decade, there has been a

strong and steady demand for experienced technical engineers and other specialists from the Philippines.
Whether companies explicitly specify a preference for
Filipino workers, the fact remains that a vast majority of oil
and gas projects in the Middle East and Asia are manned by
Filipinos.
We dont see this demand diminishing in the near future,
despite the market downturn. In fact, we expect it to grow as a
number of upstream and petrochemical projects move into the
commissioning and construction phases.
Image from iStock.
Cabiles: Here in the Southpointe Industrial Park in
10 AOG
Southwestern Pennsylvania, where I work, at least four major

oil and gas players have established a strong presence Range
Resources, Consol Energy, Noble Energy, and Rice Energy.
To me, this signals a significant and long-term commitment
of these companies to grow their businesses, which means they
will continue to need skilled oil and gas workers.
However, as the US economy is still in the recovery phase, and
many US citizens are available to meet the needs of the oil and
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d
d
gas companies here, the demand for

overseas Filipino workers (OFWs)
may not come from the US.
Given the high interest shown
by other countries, the need for
Filipino oil and gas engineers may
come from countries, such as China
and Brazil, for example.
Filipinos will most likely weigh
such as Malaysia, Singapore and

South Korea will continue to
have a steady demand for Filipino
up the option of staying in
professionals.
Weve also seen recent growth
the Philippines where jobs
in the deployment of Filipinos to
Africa and the Caspian region.
are lower paying, or working
Even in regions where a local
workforce is in high demand,
overseas where there is higher
Why are OFWs in demand?
there is still a requirement for
Espiritu-Gaspar: Most Filipinos
technical workers from the
earning potential.
are able to speak, read and write in
Philippines.
Cabiles: The US may not be one
English at a working proficiency,
Rowena Espiritu-Gaspar of these countries, at least not for
and are regarded as highly adaptthe time being. Countries in the
able and resilient people.
Southeast Asian region closer
During my experience at Air
to the Philippines, like Malaysia and Indonesia, are the most
Energi, the Filipinos I have worked with have shown great abillikely to need Filipino oil and gas professionals in the immediity to integrate and work well with colleagues and managers,
ate future.
and are considered to be good team players.
A large number of Filipinos are also family-oriented people
What kind of skills are in demand?
and their main priority is bettering the lives of their family.
Espiritu-Gaspar: In terms of skill sets, many Filipino workTherefore, they are known to have a strong work ethic and to be
ers fill design and engineering positions, and
flexible in adapting to various locations, including offshore.
work in piping, structural, electrical,
Cabiles: Filipino workers are in demand in most sectors all
instrument and mechanical roles.
over the world. It is because of their skills and professionalism
Additionally, Filipinos are often
that they have demonstrated over the years.
sought to work in the project
Therefore, if other countries would need oil and gas techniservices and controls divisions,
cal workers, they would consider, if not prioritize recruiting
occupying planning, quantity
Filipinos. Also, Filipino workers are very cost competitive,
surveying, cost control and
making them more in demand.
procurement positions. We also
see a high demand for workers to
Why is there a lack of job opportunities
fill quality assurance inspection,
within the Filipino energy sector?
field construction and maintenance
Espiritu-Gaspar: The oil and gas sector in the Philippines is
positions.
Victor Cabiles
not yet fully developed. Although new hydrocarbon reserves
Cabiles: Project management professionals, well operahave recently been discovered in the country, and a number of
tion engineers, and technicians, just to name a few. This is
companies have recently awarded contracts to local firms, the
especially true if they have experience in the unconventional
industry is still emerging.
gas sector, since this is the booming industry, at least here in
Because the Philippines is not
the US.
as mature as its Southeast Asian
There is a LinkedIn group called Filipinos in Oil and Gas,
neighbors, such as Indonesia
which provides more insights. For example, glancing at the
and Malaysia, better opportunigroups page, there is a post from Jason Brindisi, director at
ties often exist elsewhere. And
WiseRecruit, mentioning that Kampac Oil from Dubai is planalthough there is some demand
ning to increase its investment in the Philippines.
for engineers locally, experienced
Filipinos frequently choose to
Are OFWs in demand for
work overseas due to higher earning
offshore or onshore work?
potential.
In the Philippines, it is relatively
easy to hit the maximum tax rate
of 32%, whereas opportunities in other countries offer tax-free
packages or lesser tax regimes.
Cabiles: It may be that foreign firms have not yet considered
the Philippines as a substantial source for unconventional gas
or shale energy; hence, they have not yet aggressively established a presence or operations there.
Rowena Espiritu-Gaspar
Which countries will look to employ Filipino

oil and gas professionals?
Espiritu-Gaspar: Mature markets in the Middle East, such

as Abu Dhabi, Qatar and Saudi Arabia and those in Asia,
Espiritu-Gaspar: They are in high demand for both offshore

and onshore projects. In fact, if it wasnt for some of the challenges associated with applying for work visas in certain locations, I am confident that more Filipinos would be mobilized to
overseas locations.
Cabiles: I would have to say both offshore and onshore.
However, referencing again to a post by Brindisi, it seems like
offshore work is more common than onshore.
The oil and gas industry is very vertical, consisting of a
number of processes, such as the upstream, midstream, and
downstream sectors, and all of which are likely to require different labor force skill sets. AOG
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Making the most

of M.O.S.T.
Weatherfords Cham Soon Hoe and Aung
Din explain how operators in Vietnam and
Australia have benefited from the Mechanical
Outside-Latch Single Trip (M.O.S.T.) system
M.O.S.T. system Photos from Weatherford.
ncreasing energy demand has expanded exploration and production activities to nearly every corner of the world, regardless of environmental complexities
In response, operators have invested substantially in deepwater field developments, and today, a large number of deepwater
wells are recovering hydrocarbons from greater depths.
However, over time as these reservoirs reach their economic
limit, infrastructures in operation will eventually become idle
and cost significantly for daily maintenance.
When deepwater wells shift from asset to liability, plugging
and abandonment (P&A) is the next step. P&A is a major expense without return on investment and it can cost millions of
dollars per well. Besides the risk of damaging well components
that could be reused, P&A operations also inherent safety and
environmental risks. To mitigate the expected high costs and
potential hazards, dismantling deepwater wells require experienced personnel, highly advanced technology and carefully
planned execution.
Challenges
When constructing deepwater wells, operators have pushed the
boundaries to tap into deeper reservoirs and drill more highpressure, hight-temperature (HPHT) wells.
To accommodate these environments, operators are increasingly running thicker, heavier casing, typically 22in x 36in,
while the industry standard 18 3/4in wellhead inner diameter
(ID) has remained the same. This results in challenges when
cutting casing and retrieving subsea wellheads during P&A.
The restrictions on the wellhead ID prevent using tools with
large outer diameters (OD) in the cutting bottom hole assembly
(BHA), which reduces cutting stabilization. With no centralizer
on the inner casing string, the cutting BHA and inner casing
can bounce vigorously, as the outer casing string is cut.
M.O.S.T.
Weatherford has developed a technology that improves P&A
efficiency, reduces risks, and overcomes the challenges associated with cutting thicker, heavier casing strings and retrieving
subsea wellheads.
With no depth, pressure or temperature restrictions, the
Mechanical Outside-Latch Single Trip (M.O.S.T.) system cuts
and recovers multiple cemented and uncemented casing strings
12 AOG
during subsea well abandonments.

from 13 3/8-36in. It also retrieves subsea wells with 18 3/4in
high-pressure housing all in one trip and without using explosive cutting devices. The M.O.S.T. system has a maximum pull
capacity of 181,437kg and a maximum lift capacity of 90,718kg.
Deployment
The M.O.S.T. system is deployed on drill pipe from a semisubmersible rig and is simply lowered into position as part of
the BHA. Moving the mandrel body upward mechanically activates three grapple arms that close and latch onto the external
profile of the wellhead high-pressure housing.
The arms can be customized to match a range of wellhead
models from different manufacturers, even wellheads that
deviate from the standard 18 3/4in design. The mandrel then
rotates into the locked position inside the grapple housing. The
latch and unlatch of the arms and the rotation of the mandrel
body can be confirmed visually using a remotely operated vehicle (ROV) on the seabed.
Once latched onto the wellhead housing, the M.O.S.T. system
prevents the wellhead from turning or tilting, which enhances
stability throughout cutting and retrieval operations.
Unlike an internal latch mechanism, which risks damaging the
critical internal seals within the high pressure housing and rendering the wellhead unusable for future operations, the grapple
arms on the M.O.S.T. system never contacts the internal seals.
This eliminates intervention that would ordinarily be required to recycle the wellhead if it can be salvaged at all.
Additionally, the external latch provides the necessary wellhead support to eliminate lateral whipping that can damage
equipment and impede cutting.
Another advantage of latching the M.O.S.T. system onto the
external profile of the wellhead high pressure housing is the
larger ID flow area. The design of the M.O.S.T. system provides
greater clearance that enables cuttings from the inner and outer
casing strings to flow out of the ports and away from the working
mechanism, which prevents swarf buildup.
Cutting options
The M.O.S.T. system offers three cutting modes, such as compression cut with a mud motor; tension cut with a mud motor;
and compression cut with a marine swivel (top drive rotary).
Suited for deepwater and high currents, the compression cut
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Wellhead retrieval with M.O.S.T. tool.
Weatherford P&A operations in Vietnam.
and tension cut modes use a down hole mud motor to rotate the
knives, as the inner and outer casing strings are cut.
By eliminating the need to rotate the cutting BHA from the rig
the M.O.S.T. system can operate at greater depths and in stronger currents. Suited for shallower waters and lower currents,
the compression cut top drive rotary mode incorporates an
additional tool. The marine swivel, which lands on top of the
M.O.S.T. system assembly, rotates the drill string and cutter
simultaneously to cut the casing strings.
By eliminating the need for explosive cutting devices and
environmental hazards from multiple detonations, the M.O.S.T.
system improves safety and efficiency. Shaped charges may not
completely sever casing on the first attempt and may require a
second blast.
By contrast the M.O.S.T. system achieves complete separation by simply pulling up on the tool once the cut is made. The
entire assembly can then be pulled through the moonpool and
placed on the rig floor.
Vietnam case study
Another problem that operators encounter during the abandonment of deepwater wells is side loading on the cutting string.
An operator in Vietnam used the tension cut M.O.S.T. system to
cut and pull cemented 22in x 36in casing strings in 292m of water.
Strong currents made it impossible to maintain a semisubmersible rig directly above the wellhead. The off center rig placement pushed the cutting string extending from the rig to the
wellhead to one side, which generated lateral force on the string.
A major advantage of using the mud motor for this application is that it minimizes the effects of side loading. By placing
the portion of the cutting string that is exposed to the open sea
above the motor, the string remains stationary at all times.
The M.O.S.T. system eliminates the requirement to rotate the
entire string as casing is cut and improves cutting performance
in these harsh conditions. The entire operation, which usually
averages between 8-12 hours, took only five hours.
By reducing the amount of rig time by at least three hours,
the minimum cost saving for the operator was US$120,000.
Additionally, the cutting BHA had minimal damage and the wellhead could be reused without incurring significant repair costs.
Cutting and pulling uncemented 20in x

30in casing strings.
Australia case study

An operator in Australia deployed the tension cut M.O.S.T.
system to cut and pull uncemented 20in x 30in casing strings
in 291m of water. Without the support of cement and a centralizer on the inner casing string, the operator anticipated
severe vibration once cutting began, which could damage the
knives and require extra trips down hole to cut and pull the
outer casing string. Cutting the inner and outer casing strings
began at a depth of 958ft (292m). These parameters included a
flow rate of 1741 L/min and the application of 1650 psi.
To minimize vibration of the inner casing string, pressure
was monitored and controlled. Once the maximum pressure
was obtained, the flow rate of water pumping through the BHA
string was maintained to keep the pressure constant.
Both the casing strings and wellhead were removed in a
single trip with minimal damage to the 39in sweep knives. The
operator avoided nonproductive time (NPT) by eliminating the
need for a second trip. By using the M.O.S.T. tool transportation skid, it enabled the equipment to be delivered to the well
site preassembled and ready to deployed. The M.O.S.T. system
saved two hours of rig makeup and lay down time valued at
approximately $65,000. No safety or environmental incidents
were recorded and the entire operation took 8.5 hours. AOG
Aung Din is a region sales manager for

fishing and well abandonment services at
Weatherford. He holds a mechanical
engineering degree from the National
University of Singapore and has spent over
10 years working in the oil and gas sector.
Cham Soon Hoe is Weatherfords regional

operations manager for fishing and re-entry
services with over 10 years experience in
running fishing tools and well abandonment
projects. He holds a degree in petroleum
engineering from the University Technology
of Malaysia.
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8/6/15 12:19 AM
Qatar LNG
challenged
With more competitors entering
the global gas market, Qatars LNG
exports to Asia could be further
tested. Audrey Raj reports.
lthough Qatar is the largest exporter of liquefied

natural gas (LNG), accounting for 32% of global LNG
exports, its dominance could be challenged by the US,
Australia and Iran.
Accounting for 55% of the countrys gross domestic product
(GDP), Qatars economy heavily relies on its energy sector with
most of its revenue generated from selling LNG.
Its state-owned enterprise Qatar Petroleum (QP) and its subsidiaries run much of Qatars oil and gas industry. QP has 14
LNG trains with a total production capacity of 77 MTPA, and
RasGas and Qatargas operate seven LNG trains each.
The Qatargas consortium includes QP, Total, ExxonMobil,
Mitsui, Marubeni, ConocoPhillips and Shell, while QP and
ExxonMobil own RasGas.
Qatar has the third largest natural gas reserves in the world
amounting to 24.5 Tcm and the lowest production costs of LNG
in the globe, says Dr. Mamdouh Salameh,
an international oil economist and consultant to the World Bank.
CNOOCs LNG-powered tugboat.
Photo from Rolls Royce.
14 AOG
Laffan Refinery.
Qatars LNG accounts for 80% of all LNG exports to Asia.

Japan, South Korea, India and China are the main importers of
Qatars LNG. Japan is Qatars largest market followed by South
Korea and India, Salameh explains.
At present there is a combined 52 Bcm/a of Qatari LNG contracts in place with Asian buyers, which is close to 50% of overall Qatari production, points out Nayem Chowdhury, analyst at
Bentek Energy, an analytics and forecasting unit of Platts.
Largest share accounting to 35 Bcm/a is held with India,
Japan and South Korea, with each of these nations contracting
11-12 Bcm/a of LNG from Qatar, Chowdhury says.
However, this number drops by 10 Bcm/a in 2022, as 10
Qatari contracts with Japanese buyers come to an end the
preceding year 2021, and a further 7 Bcm/a contract with South
Korea also comes to an end by 2023.
US, Australia impact
While Salameh is determined that Qatar will continue to be
one of the worlds largest producers and exporters of LNG well
into the future, he also thinks Australia could overtake them to
become the largest LNG exporter by 2020.
LNG exports from the US and Australia could seriously
compete with Qatar LNG exports to Asian countries, Salameh
says.
Australia is the biggest rival in the Asian market and will
likely continue to be so, he says. In 2014,Qatar exported 77.4
million ton of LNG, while Australia exported 20.8 million ton.
Against Qatars 77 million ton of production capacity,
Australia will have 85 million ton by the end of this decade.
And by the mid 2020s, the US may have built a production
capacity of 50 million tonne or more, and Canada would have
added another 35-50 million tonne, he says.
The commencement of US exports will also add length to the
market and downward pressure on European hubs, as well as
Asian LNG spot prices.
Chowdhury says as nearly 25% of Qatari volume is not contracted as of 2015, this will impact the price they can achieve
for their cargoes. However, we expect Qatari production to
remain robust, as their cost of production remains very low.
While Qatars mainadvantage is its geographical location between main markets in Asia and Europe,
its disadvantage is its long distance
from East Asian buyers relative to Australia.
Nonetheless, Australia is
a much higher cost producer
than Qatar and doesnt act
strategically, since its LNG
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Halul offshore platform.
industry is split between many different companies, Salameh

adds.
Qatari LNG will continue to be very profitable, but prices
will decline and it wont be able to be the swing producer or
strategic player anymore.
Plunging global oil prices, Salameh says, may turn hopes for
cheap LNG supplies from the US into a costly disappointment
for Asian buyers who have already invested billions of dollars
in long-term contracts.
The 54% price slide since June 2014 to US$60/bbl exposes
cracks in the assumption by Japan, India and other Asian buyers that cheap US LNG would muscle into high value Asian
energy markets from 2016, he says.
The oil price drop has also raised the possibility that some
US Gulf Coast LNG export plants may be mothballed before
they ever get a chance to supply world markets.
Iran nuclear deal
Irans fi nal nuclear deal would mean international oil and
gas majors can now invest in Iranian exploration, plus import
technologies needed to develop the countrys vast amount of
hydrocarbon reserves.
However, given current market conditions only limited international investments will likely be available to help increase
Irans production.
At todays low oil and gas prices, investors are cutting back
everywhere. The terms offered by Iran must be so remunerative,
so as to entice foreign investors back into Iran, Salameh says.
However, with technology and investments Iran could substantially raise its natural gas production, and export sizeable
amounts to Europe and the Asia-Pacific region in the form of
natural gas and LNG, competing directly with Russian gas supplies to Europe and Qatars LNG exports to Asia.
Asian buyers
The Global Liquefied Natural Gas (LNG) Market Assessment by
Frost and Sullivan found that demand from emerging Asian
countries fuels global LNG imports.
According to the report, the market had a supply of 32.42
Bcf/d in 2014 and estimates this to reach 69.26 Bcf/d in 2025,
with LNG demand from Asia projected to be 23 Bcf/d by 2025.
Asian LNG demand is expected to grow at a rate of 5% per
annum from 2014-2025, and Chowdhury says this will be particularly driven by China and India.
We expect their combined imports to double reaching just
above 90 Bcm/a between 2014-2020. India could receive up to 8
Bcm/a of US LNG starting mid 2017.
We also expect a six-fold increase in LNG demand at the
Qatargas LNG ship. Photos from Qatargas.
newer importing nations like Indonesia, Malaysia, Pakistan,

Singapore and Thailand in the next ten years, Chowdhury says.
While demand is likely to rise further supported by lower
prices, Qatars ability to maintain its pricing advantage will
be challenged, as these markets benefit from new supplies and
better deals.
Contract terms for LNG buyers are changing too, Salameh
says. Until recently, LNG was mostly supplied under rigid
conditions set out by major gas companies, and buyers would
typically have to commit to 20-year contracts.
As market dynamics have changed in buyers favor, they are
opting for shorter term contracts and pricing arrangements are
becoming more flexible as well, he says.
Today, buyers have a choice. They can buy LNG at an oil-linked
price, Henry Hub-linked price or European gas-based price.
Buyers in China, Japan and South Korea are already using the
prospect of LNG shipments from the US, as leverage in seeking
lower prices and better terms from sellers, such as Russia.
The Chinese are likely to be looking to squeeze even better
price out of the Russians, Salameh says.
Qatars response
The Qatari government has suspended construction of new LNG
plants, as well as put a moratorium on further development of
the North field, restricting annual production to 77 MTPA.
That creates an opening for competing nations. Qatar could
add another 12 MTPA of capacity by debottlenecking its existing
plants, and the North field has ample reserves, Salameh says.
However, Qatar seems in no hurry to launch new projects.
Its response has been buying up the competition.
For example, Qatar Petroleum International (QPI) bought
stakes in gas and oil fields in Brazil, Canada and the Republic
of Congo since April 2013, he adds.
QPI also owns 70% stake in Houston-based Golden Pass
Products, a joint venture with ExxonMobil that operates the
LNG import terminal in Sabine Pass in Texas.
It is also seeking fi nal permission from the US Energy
Department to add an export terminal to the existing import
terminal, he says.
In addition, the foreign investment arm of the sovereign wealth
fund, has also taken stakes in Royal Dutch Shell and Frances
Total, both of which operate LNG plants around the world.
Salameh says, Qatars LNG exports will continue to be enormously lucrative with the lowest production costs in the world
and enormous volumes of petroleum.
But if it is not going to expand capacity further, it does not
have the strategic ability to deter competitors. There is a lot of
new competition coming up. AOG
July August | AOG
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Fabrication
scales new heights
Liftboat hull fabrication. Photos from TRIYARDS.
Singapore-headquartered TRIYARDS
continues to expand its fabrication
expertise. Audrey Raj explains.
ffshore vessel fabrication and engineering solutions

provider TRIYARDS achieved yet another milestone
with the delivery of its second BH 450 liftboat. T he
ABS-classed BH 450 is the groups fi rst fabricated lattice leg liftboat standing at more than 450ft, capable of operating in water
depths up to 105m.
Designed by Lousiana-based A.K. Suda Ltd., BH 450 is a
three-legged, self-elevating, self-propelled general service
workboat suitablefor operations in the North Sea.
The companys CEO Chan Eng Yew says these liftboats
account for more than 70% of the groups revenue with each
worth approximately US$90 million.
The BH 450 showcases TRIYARDS superior design, engineering, fabrication and project management capabilities,
because it is one of the worlds tallest liftboats, Chan says.
We delivered our fi rst BH 450 mid last year and the second
unit was delivered this year to Southeast Asia-based operators.
Since then, we have also bagged orders worth $175 million
to construct our third and fourth BH 450 units, currently under
construction in our Vietnam yards.
16 AOG
Ho Chi Minh City yard.
Our stepped up presence in large liftboats demonstrates

increasing market acceptance and growing demand for these
type of vessels, Chan says.
Fabricating the 450ft-long lattice legs is a major engineering
feat for TRIYARDS, as they need to be sturdy enough to withstand powerful winds and ocean currents to ensure the safety
of 250 crewmembers onboard.
The vessels hull is fabricated in sections and interfaced with
key pieces of equipment, including the thruster, jacking system, generator, HVAC system and electrical system.
Apart from the usual fabrication work, we also have to meticulously select the appropriate steel to design and develop suitable
legs for the BH 450, says yard general manager, Jeffery Ong.
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Vietnam yard workers.

BH 450 liftboat.
As a result, extreme precision is needed to construct the

latticed legs. For example, heat distortion has to be minimized
during fabrication and welding.
We also use laser equipment to measure the dimensions and
tolerance levels of the legs at every step of the construction process. Even the jacking system has to be carefully tested using a
full load that is lifted 105m high, Ong explains.
Fabrication expertise
In addition to liftboats, TRIYARDS also fabricates floating
production, storage and offloading (FPSO) vessels, platform
jackets, catenary anchor leg mooring (CALM) buoys, heavyduty offshore crane structures and large A-frames.
End users who have deployed the firms units include international oil majors, such as PETRONAS, Chevron Thailand,
Brunei Shell Petroleum, ExxonMobil Nigeria and Pertamina.
Most recently, in March, the group secured a fabrication
project from London Marine Consultants (LMC) to supply an
external turret mooring system for the FPSO vessel destined for
the Petrobras-operated Libra field offshore Brazil.
LMC will carry out the engineering, procurement and
construction of the external cantilever turret, which will be
fabricated at the TRIYARDS shipyards.
After which, the turret will be integrated with the Navion
Norvegia FPSO at Jurong Shipyard where the Navion Norvegia
shuttle tanker is being converted to form the Libra extended
well test FPSO for OOGTK Libra GmbH & Co KG.
TRIYARDS has also completed other turret fabrication jobs
for FPSOs, such as Perisai Kamelia and LMC FSO Salamander
in the past, Chan says. Our works for these vessels have been
audited by oil majors like Hess and Total.
Since the groups acquisition of aluminium shipbuilders,
Strategic Marine (S) and Strategic Marine (V), TRIYARDS has
added both new fabrication capacity, as well as engineering
capabilities in aluminium too.
Strategic Marine has built fast military craft and other commercial vessels, plus aluminium helidecks and gangways for
the marine industry, Chan says. With them under our belts, we
not only have an extended client base, but have also become one of
the few yards in Asia with capabilities in both steel and aluminium shipbuilding and fabrication.
Vietnam yards
Focused on shipbuilding, ship conversion, medium-to-heavy
fabrication and ship repair, TRIYARDS owns fabrication yards
in Ho Chi Minh City and Vung Tau in Vietnam, as well as design and engineering facilities in Houston and Singapore.
The three main yards for heavy fabrication work, Ong says,
are fully equipped to handle a wide range of design and engineering projects, vessel conversions and ship repairs.
Furnished with heavy-lift gantry cranes and deepwater
berths, these Vietnamese shipyards can undertake large scale
projects to fabricate different components of fixed platforms, as
well as vessel constructions.
The facility located in Ho Chi Minh City boasts 100,000sq m
in size with 50,000sq m of covered fabrication space; while the
two yards in Vung Tau are collectively 350,000 sq m big with
approximately 120,000sq m workshop space.
Its design and engineering facility in Houston produces
equipment, such as cranes, A-frames and winches, which are
installed on the self-elevating units and offshore support and
construction vessels fabricated at the yards.
The close proximity of the two yards in Vung Tau, such as
the TRIYARDS Vung Tau and Strategic Marine Vung Tau, Chan
says, has enhanced the teams operational efficiency.
For meeting international standards in quality assurance, occupational health and safety and business continuity
management, our facilities won certifications, such as ISO
22301:2012, he highlights.
These credentials have strengthened our competitive edge,
boosting our efforts to establish TRIYARDS as a fabricator for
the global offshore and marine industries.
Our offshore expertise also extends to construction vessels, as
well as other offshore support watercraft, including anchor handling tug supply vessels and platform supply vessels, Ong adds.
One to note is the construction of Lewek Constellation
for EMAS AMC. We delivered the vessel on time and within
budget from our Vietnam yards, which represented another
milestone for TRIYARDS.
Lewek Constellation is a multi-lay offshore construction vessel with ultra deepwater pipelay and heavy lift capabilities. It is
equipped with an ice-classed hull capable of transiting through
0.8m of ice and a technologically advanced DP3 system. AOG
July August | AOG
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COOEC goes
international
Audrey Raj speaks with COOEC about
the groups first international EPCIC
project challenges and more.
xecution of the Zawtika phase 1B engineering, procurement, construction, installation and commissioning
(EPCIC) project is well underway, says Offshore Oil
Engineering Co. (COOEC).
Headquartered in Tianjin, China, COOEC is a Shanghai Stock
Exchange-listed, wholly-owned subsidiary of Chinese oil major,
China National Offshore Oil Corp. (CNOOC).
The Zawtika EPCIC includes four wellhead platforms, three
20 and one 12-well slots, four associated pipelines, brown field
modification of existing platform and telecommunications integration in the Zawtika field.
Awarded by Thai operator PTT Exploration and Production
(PTTEP), Zawtika development is located in blocks M9 and M11
in the Gulf of Martaban, offshore Myanmar.
According to project control manager, Liu Chen, Zawtika
phase 1B is the fi rst international EPCIC project for the
group and this has helped to strengthen their position in the
Southeast Asian market.
Tanggu fabrication yard Photos from COOEC
Lanjing vessel
We were awarded the Zawtika EPCIC project in May last

year, Chen says. It has been a significant milestone for us, as
we get to work closely with Southeast Asian oil companies.
It has helped us with our overall improvement as an EPCI
contractor, plus provided the opportunity to further expand
into international markets outside of China, Chen adds.
Scheduled for completion in April 2016, Zawtika EPCIC
involves two stages onshore construction and offshore installation. Since its the groups first EPCIC work in international waters, Chen says they experienced some first-of-its-kind challenges.
Zawtika EPCIC
International procurement and scheduling were some of the difficulties faced during the initial stages of onshore construction.
In order to procure materials and equipment required for the
job, COOEC had to collaborate with international manufacturers from the companys approved vendor list (AVL).
This was a challenge for us, Chen says. Since we havent had
prior relationship with these overseas manufacturers, it was a
aogdigital.com
18 AOG | July August 2015
018_AOG0815_Feature5_EPCI.indd 18
8/6/15 12:25 AM
Zawtika project.
Zawtika project team.
challenge for us to control cost and timely delivery of the products.

As a result, to run the project smoothly, COOEC formed a
11-person Zawtika project procurement team to focus simply
on international purchasing.
Moreover, to ensure the quality of the procured materials
and keep track of deliveries, we also hired several experienced
international purchasing experts to work alongside these
manufacturers for acceptance check, Chen continues.
While the detailed engineering started in July 2014, the onshore construction kicked off December 2014.
Due to this tight schedule and strict engineering requirements, COOEC had to transfer another 150 personnel from its
technical department to work with the project management
and procurement teams.
More man power allowed for a even smoother work flow and
on schedule onshore construction, which is at its final stages,
preparing for offshore installation in October, Chen says.
Here, too, we will experience challenges due to adverse
weather conditions and tight scheduling. Myanmar is a
typhoon-prone sea area and offshore construction is not allowed during this time.
So, we have to complete the job in less than five months or
else it will result in a delay. To overcome this challenge, we
have planned to use all our leading vessels for the installation
phase, including Lanjing and HYSY 289, Chen says.
depth, the main production facilities of this oilfield include

one central processing platform, two wellhead platforms and
70 producing wells.
Though there are currently 12 wells producing approximately 10,750 bo/d, operator CNOOC expects this to peak at
36,000 b/d in 2016.
COOEC
Employing over 8000 personnel, COOEC operates three yards
that collectively cover a total area of 3.5 million sq m, located
in Tanggu of Tianjin Municipality, Qingdao of Shandong
Province and Zhuhai of Guangdong Province.
Our large scale shallow and deepwater engineering projects
are executed in these yards. We also own a diversified offshore
construction fleet consisting of over 20 vessels, Chao says.
Notable ones include the 3000m deepwater pipelay and
hoisting vessel HYSY 201, the vessel Blue Whale with hoisting
capacity of 7500 ton and the semisubmersible self-propelled
engineering ship HYSY 278.
In July, HYSY 278 completed module floatover installation
for the CKX project at the Cakerawala gas field in the Gulf of
Thailand, approximately 150km northeast to Kota Bharu in
Malaysia.
A joint operation by COOEC and Dockwise Shipping, it was
HYSY 278s second floatover installation, following the Enping
25 module in 2014.
FPSO, Kenli 10-1 EPC
Other type of vessels we own consist of a 50,000 ton semiIn May, COOEC won an engineering, procurement and consubmersible self-propelled vessel, a 3000m deepwater multi
struction (EPC) contract for two 300,000 dwtFPSO vessels, by function underwater engineering vessel, a deepwater installaTUPI BV, owned by Petrobras.
tion vessel and deepwater trenching vessel, Chao says.
After being in operation for more than four decades, Chao says,
This project was originally contracted to Integra. Due
the firm now specializes in eight essential offshore services.
to some problems, we were asked to take over the job, says
These comprise of engineering design, engineering construction,
deputy manager of project management, Zhai Chao.
Integra completed the engineering work for one FPSO and the engineering installation, field maintenance, underwater engineersecond one still requires some work. We will complete that engi- ing inspection and installation, skid mounted product manufacneering bit and start on procurement and constructions stages.
turing, offshore engineering inspection and EPC management.
We also have an extended client base, and have previously
Scheduled for completion in December 2017, this is our first
international FPSO EPC contract with Petrobras. We believe this done projects for other international companies like Husky
will open up expansion into the South American market as well. Energy, Confield, Kerr-McGee, Technip, MODEC Offshore, Aker
On the local front, COOEC recently completed the EPC for
Solutions and FLUOR, Chao says.
CNOOCs Kenli 10-1 oil field involving three platforms, four
Moving forward, we hope to further expand our services in
subsea pipelines and two submarine cables.
Asia Pacific, as well as Africa, Canada, Europe and possibly the
Located in the South of Bohai, in approximately 17m water
Artic region. AOG
July August | AOG
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018_AOG0815_Feature5_EPCI.indd 19
19
8/6/15 12:25 AM
GEOGRAPHICAL FOCUS: CHINA
Protecting
IPR in China
To remain competitive
in the Chinese market,
foreign oil and gas
enterprises must protect
their intellectual property
rights in China, explain Brad
Chin and Kevin Tamm of
Bracewell & Giuliani LLP.
ith Chinas focus on developing a national plan to

promote economic and technological development
through the protection and enforcement of intellectual property (IP) rights (IPR), non-Chinese enterprises must
understand the available forms of IP protection in the country.
According to the World Bank, since initiating market reforms in
1978, China has shifted from a centrally planned to a market-based
economy, and has experienced rapid economic and social growth.
Since 2010, Chinas GDP growth has averaged about 10% a
2.5
Millions
2.0
Patent applications filed in China

By Chinese
By Foreigners
Total
1.5
1.0
0.5
0
2003 2004 2005 2006 2007 2008 2009 2010
year and at the end of 2014 its GDP surpassed that of the US.
With a population of almost 1.4 billion people, China has become the second largest economy.
According to the United Nations Environment Programme,
the use of fossil fuels by Chinas rapidly growing population
has increased by more than sevenfold, growing annually at a
rate of 5.3%.
With the rapid growth rate in Chinas economy, population,
and consumption of energy resources, China is shifting its focus to develop a National IPR Strategy Action Plan (IPR Action
Plan) to enhance its capacity to leverage its IPR in global
competition.
IPR, 2020 action plan
With the advancement of domestic technology and the implementation of the IPR Action Plan, Chinese enterprises are
developing strategic IP portfolios to equip them for competition
with international companies.
They are mining, protecting, and enforcing domestic
IPR against non-Chinese enterprises as an effective way
to stake their position in the global marketplace.
To further develop its IPR Action Plan, China recently issued the Further Implementation of the National
IPR Strategy Action Plan 2014-2020 (2020 Action Plan).
The 2020 Action Plan identifies four objectives, such
as to promote IP creation and utilization; strengthen
IP protection; strengthen IP management; and expand
international IP cooperation.
Under the 2020 Action Plan, too, Chinese enterprises
are actively developing IP portfolios to protect IPR both
domestically and internationally.
2011 2012 2013 2014
Fig. 1: Patent applications filed before SIPO.
PatentsgrantedinChina
1.4
1.2
Millions
1.0
0.8
Chinese
Foreigners
Total
0.6
0.4
0.2
0
2003 2004 2005 2006 2007 2008 2009 2010 2011
2012 2013 2014
Fig. 2: Patents SIPO granted to domestic and foreign applicants.
20 AOG
Chinese vs foreign filings

Recent statistics from the State Intellectual Property
Office (SIPO), demonstrate the rapid increase in patent
filings by Chinese enterprises to protect their technology assets, as compared to their foreign industry
counterparts.
For example, Figure 1 shows the increase of patent
application filings at SIPO for both Chinese and foreign
enterprises from 2003-2014.
In 2014, over 2.36 million patent applications were
filed before SIPO (about 2.2 million being filed by
Chinese enterprises), as compared to approximately
300,000 patent applications filed in 2003.
In the past 11 years, the number of patent applications filed by Chinese enterprises has grown at an
| July August 2015
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020_AOG0815_Geo1_Property.indd 20
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PatentinfringementcasesfiledinChina
filing of the complaint, compared to at least two years

in the US.
Civil Courts
However, the adjudication of an action (for example, a
10
patent infringement case) in China is routinely delayed
Administrative Agencies
8
for one to two years by a concurrent patent invalidity
challenge, which can only be conducted by SIPO.
6
In the US, a patent infringement case is less often
stayed pending a concurrent determination by the US
4
Patent & Trademark Office of a patent invalidity challenge, than through a reexamination proceeding.
2
Chinas recent move to strengthen IP protection by
0
enhancing speedy enforcement of IPR further shows
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
the importance for foreign enterprises to understand
Fig. 3: Cases filed in Chinese civil courts and administrative agencies.
IPR acquisition and enforcement.
average annual rate of 21.9%, as compared to 10.2% for foreign
In an attempt to answer criticism that it has been lax in IPR
enterprises.
protection, China, in 2014, established three specialized courts
Similarly, the number of patents granted by SIPO has increased
in Beijing, Shanghai, and Guangzhou to handle IP cases.
in the past decade, as indicated by Figure 2. In 2014, over 1.3
Figure 3 shows the fast-growing number of patent infringemillion patents were granted by SIPO and about 1.2 million of
ment cases filed in Chinese civil courts by Chinese and foreign
which were granted to Chinese enterprises.
patent holders.
Chinese civil courts entertained 9648 patent infringement
The number of patents granted to Chinese enterprises has incases in 2014, a growth rate of 464%, as compared to only 2080
creased at an average annual rate of 21.9% in the last decade, as
being filed in 2002. Similarly, patent right disputes are increasing
compared to 13.6% for foreign enterprises. Similar trends are
in the administrative track of the Chinese IP enforcement system.
observed in relation to the filing for protection of trademarks
For example, 4684 patent infringement cases were filed
and copyrights in China.
Chinese enterprises are also actively enforcing their IPR
before administrative agencies in 2013, more than double from
against other Chinese enterprises and foreign enterprises to
2012. Similar trends are observed in relation to the enforceimprove their position in the global marketplace.
ment of trademarks and copyrights in China.
Thousands
12
IPR enforcement
China provides two primary mechanisms to enforce IPR, such
as administrative agencies and judicial proceedings (i.e., civil
or criminal actions).
Provincial or city-level IP offices govern administrative IPR
enforcement. In an administrative procedure, a complainant
must provide some prima facie evidence of infringement to the
local agency.
Remedies include, for example, destruction of an infringing
product and/or the tooling to produce the infringing product,
and injunctions.
The administrative agencies cannot award damages to IPR
owners, but the enforcement of IPR is routinely much quicker
than that provided by judicial proceedings.
Administrative decisions can be appealed to the Peoples
Supreme Court. Traditionally, administrative IPR enforcement
has been almost exclusively used by Chinese enterprises.
All forms of IPR in China can be enforced through civil
actions. In some instances, criminal actions can be raised in
cases of serious infringement, but are very rare.
Judicial enforcement is the most popular method chosen by
foreign enterprises because they are more familiar with enforcing their IPR in courts, and civil courts can award both injunctions and monetary damages.
Foreign enterprises should also be aware that discovery is
not permitted in a judicial proceeding in China, and therefore
an IPR owner must rely on private investigation - for example,
during an administrative action, to prove infringement and
damages in the judicial proceeding.
Chinese courts offer litigants, both Chinese and foreign enterprises, a relatively speedy mechanism for IPR enforcement.
The time to trial in China is usually less than a year from the
22 AOG
Conclusion
These growth rates in patent filings (i.e., IPR protection) and
enforcement of IPR through administrative agencies and civil
court proceedings demonstrate that a foreign company seeking
to enter the Chinese market must select the most effective form
of IPR protection for its technology.
In addition, understand the procedural advantages and challenges associated with the use of administrative actions and
judicial proceedings to maintain an equal footing with Chinese
enterprises.
Non-Chinese fi rms must also develop relationships with
local Chinese industry partners and legal representatives, as
well as gain an understanding of the judicial requirements for
protecting their IPR in China. AOG
Brad Chin is a partner and the IP practice

group head at Bracewell & Giuliani LLP. He
has global IP practice with an emphasis on
patent protection and portfolio management
for the US and international (China, South
Korea, Japan, and the Middle East) clients.
Chin is also a former US Patent & Trademark
Office Patent Examiner.
Kevin Tamm is a US registered patent
attorney practicing as an associate with
Bracewell & Giuliani LLP. He counsels clients
regarding patentability and intellectual
property asset management in the areas of
energy, oil and gas and petrochemicals.
| July August 2015
aogdigital.com
020_AOG0815_Geo1_Property.indd 22
8/5/15 11:54 PM
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aogdigital.com
AOG_07_08_2015_ads.indd 23
8/4/15 5:14 PM
China eyes
Russian reserves
Russias decision
to allow Chinese
investors
to acquire
controlling
stakes in its oil
and gas fields
comes with
potential risk.
Eugene Gerden
investigates.
Rosneft and CNPC Vankor agreement. Photo from Rosneft.
he Russian government plans to allow Chinese oil companies to acquire controlling stakes in some of the countrys oil and gas fields, its deputy prime minister, Arkady
Dvorkovich, responsible for oil and gas development within the
Russian government, announced early 2015.
Western sanctions, coupled with increased costing have
hampered Russias oil and gas sector resulting to suspension of
projects initially planned for 2015.
Although the sale of controlling stakes could benefit both the
Russians and the Chinese, in the case of Russia, it will help to
raise additional funds needed for field developments provided
by Chinese banks and investors.
Dvorkovich says Chinese investors interest in Russian
reserves has been on the rise and there are no political and
economic obstacles that can prevent this acquisition.
In fact, the Chinese government has unofficially expressed
interest to partner with Russia in hydrocarbon exploration activities through funding support, says Sergey Sokolov, spokesperson for Alexander Novak, Russian minster of energy.
Since, the countrys economy heavily depends on its oil and
gas sector, the governments pivot towards China further signifies the need for foreign help to develop energy reserves.
In its move to attract more international oil majors, Russia is
also in the midst of introducing new tax regimes in due course
24 AOG
to boost exploration through foreign investments even in its

Artic shelf.
Chinese interest
Energy cooperation between Russia and energy-hungry China
has been taking place for several years.
Recently, a November 2014 agreement was signed between
Rosneft and China National Petroleum Corporation(CNPC) for
the sale of 10% stake in theVankor field.
Located 130km west of Igarka in the northern part of Eastern
Siberia, the field is home to approximately 520 million tonne of
oil and 95 Bcm of natural gas.
This US$1 billion deal will see field operator, Vankorneft, a
Rosneft subsidiary supply $7 billion worth of oil annually to
China.
While analysts at the Russian Ministry of Industry and
Trade say the Vankor field is one of the most attractive fields to
Chinese companies, the Russian Ministry of Energy believes
CNPCs stake in the field could increase up to 49%.
Other Russian assets that interest Chinese investors include
Rosnefts Srednebotuobinskoye and Yurubcheno-Tokhomskoye
oil and gas fields, which hold about 321 million tonne of combined oil reserves.
In the gas sector, specific interests are the Eastern Siberian
| July August 2015
aogdigital.com
024_AOG0815_Geo2_China_Russia.indd 24
8/5/15 11:57 PM
Power of Siberia construction

launch. Photo from Gazprom.
gas fields, and in particular the Gazprom-led Kovykta field

with estimated reserve of 1.5 Tcm.
Another attraction is the Angara-Lena field, which holds
approximately 2 Tcm of gas, operated by Russian billionaire,
Gennady Timchenko.
Currently, CNPC holds 20% stake in the $27 billion Yamal
LNG project, which involves the construction of a 16.5 MTPA
natural gas liquefaction plant in the northeast of the Yamal
Peninsula. Yamal LNG is a joint venture between CNPC,
privately-owned Russian gas producer Novatek (60%, operator),
and French oil major Total (20%). First production is scheduled
for 2017. The joint venture is courting assistance from Chinese
banks to fund the project due to fi nancing strains caused by
western sanctions.
Russia is also opening partnership opportunities in its
technically challenging Artic shelf. Last year, Sergey Donskoy,
minister of natural resources, announced the governments
plan to attract Chinese investors for this development.
CNPC, China National Offshore Oil Corp (CNOOC) and
Sinopec have already expressed interests to participate
in Rosnefts Artic exploration.
There is a possibility these
Chinese counterparts could
receive 33.3% stake in the project
also including Statoil, Eni and
ExxonMobil.
Russia experiences an
acute need for Chinese money, Maslov says. Although
cooperation could help the
country, it may also push
away other potential partners
in the Asia-Pacific region, in
particular Japan and South
Korea.
This may also result in
Russia becoming a mere supplier of raw materials to China. Currently China already controls 30-40% of oil fields in Kazakhstan and hopes to achieve
the same with Russia, Maslov explains.
Another risk could come in the form of cheap oil supplies
to China says Sergey Drozdov, board member of Russian oil
producing fi rm, Bashneft.
As Chinese fi rms invest in the majority of Russian oil and
gas fields with an aim to purchase discounted oil exports to
China, this could pose a threat to the Russian energy sector and
its economy, Drozdov says.
Similarly, analysts from the Russian Ministry of Energy have
also expressed their dissatisfaction with the Power of Siberia
pipeline project involving CNPC and Gazprom, as it is unprofitable to the Russian economy.
They are concern the provision of controlling stakes in the
countrys oil and gas fields could also result in low-priced oil
exports to the Chinese.
However, due to shortage of funds and limitations on new
fi nancing, Sokolov says, Rosenft and the Russian government
will be forced to expand cooperation with China. AOG
Risk for Russia

According to Alexey Maslov, head
of the school of Asian studies at
the National Research University
Higher School of Economics,
the association of China in the
Russian oil and gas industry
comes with potential risk.
Power of Siberia construction
launch. Photo from Gazprom.
July August | AOG
aogdigital.com
024_AOG0815_Geo2_China_Russia.indd 25
25
8/5/15 11:57 PM
Solutions
Halliburton debuts dissolvable frac plug
Halliburtons Completion Tools business introduced the Illusion frac plug, a
10,000 psi rated product that shortens time to production by eliminating the
need to mill out plugs after fracturing.
The Illusion frac plug revolutionizes plug-and-perf completions for fracturing
in unconventional markets.
Plugs can be installed at any position in the wellbore to enable optimal placement of perforations for improved fracturing, without prepositioned locator
subs or other equipment that remains in the wellbore post-frac.
Illusion frac plugs dissolve completely to leave an unrestricted bore for
production, and since no intervention is required to clean the wellbore after the
frac, risk is reduced and production may be brought on sooner to improve the
net present value (NPV) of the asset.
We have successfully run Illusion plugs for our customers in the Eagle Ford,
Bakken, and Woodford shale plays, says Artie Burke, vice president of Completion Tools. It will reduce risk, allow production to commence sooner and improve the overall cash flow for our customers. www.halliburton.com
Global Marine acquires

jet trenching ROV
Global Marine Systems extended its

subsea capability with the acquisition of
a jet trenching ROV.
The new submersible compliments the
existing burial equipment portfolio and is
designed for pre and post-lay trenching,
as well as simultaneous lay and burial in
the offshore subsea cable sectors.
The new addition is the Q1000 jet trencher, whose modular design allows it to
be easily mobilized onto vessels.
With 1000hp of total installed and variable jetting power, the ROV is suitable for
trenching pipelines, umbilical and cables
to a burial depth of 3m at a speed of up to
400m/hr.
Operationally-rated to a depth of
26 AOG
1000m, the Q1000 is easily configured

for use with either tracks or skids to suit
the application and can be deployed for
trenching operations on all seabed conditions, from fine sand to firm clay.
In addition, the jet trencher is also able
to handle product up to 500mm in diameter, increasing the scope of work that
Global Marine is able to undertake.
The high specifications of the Q1000 Jet
Trencher will enable the submersible to
operate globally in extreme environments
and in challenging weather conditions.
www.globalmarinesystems.com
Parker introduces
FCC technology
Parker
Hannifi n
introduced
its high
integrity
tube
connection technology offering instrumentation system designers and installers major performance and time-saving
advantages.
Designed for working pressures as high
as 22,500 psi, the new flared cone con-
nection (FCC) technology advances the

performance of compression style tube
connections.
It provides users with a simple and
reliable means of speeding the assembly
of instrument tubing systems for use in
higher pressures applications in the oil
and gas industries.
The new FCCs are much simpler to
make up. Installers can typically complete
the task in less than four minutes, after
only minimal training.
This timesaving can result in significant
cost reductions on installations with a
large number of tube connections. FCCs
are also especially cost-effective in applications where leaks caused by vibration
are an issue.
Parker Autoclave Engineers patentpending FCC technology is based on a
single sleeve compression style system.
However, unlike conventional designs,
the tube end is flared to prevent any possibility of ejection, and also provides the
connections primary metal-to-metal seal.
www.parker.com
T-Strake by Trelleborg
Trelleborg
showcased
its new
T-Strake, a
new vortex
induced
vibration
(VIV) system, at OGA 2015.
T-Strake features a modular design
enabling more efficient transportation and
installation.
The manufacturing process for T-Strake
means they can be produced up to six
times faster than systems manufactured
using traditional techniques, ensuring
shorter lead times.
In increasingly rougher seas, pipelines
unsupported over free spans are prone to
VIV fatigue and this is a growing concern, says Ajan Das, business development manager of Trelleborg Offshore.
VIV can lead to serious issues such
as pipe girth weld failure or premature
pipe malfunction. As a result, Trelleborg
designed T-Strake flowline protection to
suppress the effects of these vibrations on
pipes, avoiding damage and downtime.
www.trelleborg.com
| July August 2015
aogdigital.com
026_AOG0815_Solutions.indd 26
8/6/15 12:04 AM
Spotlight
Powering energy management
David Farmer, Eatons vice president of global projects for oil
and gas discusses energy efficient alternatives for oil and gas
sustainability in Southeast Asia.
By Audrey Raj
ow can energy management
help oil and gas sustainability?
Energy management organizes the planning and operating of how energy is produced and consumed. Effective energy
management can help to reduce pollution
levels caused by harmful releases from
fossil fuels emitted by the oil and gas
industry.
As part of the energy management
plan, companies in this sector look
towards innovative technologies, greener
practices within operations, and the use
of cleaner materials, fuel blends and advanced biofuels to ensure sustainability.
new sources to power. The biggest challenge here is scaling this up in a clean
and responsible manner to meet rapidly
growing demand.
Are renewables and nuclear the answer for Southeast Asias energy mix?
Southeast Asias primary energy mix is
dominated by fossil fuels, with oil, natural gas and coal making up more than
three-quarters of todays energy demand.
Oil remains the dominant fuel with
regional demand currently at 4.4 MMb/d.
Can fossil fuels exist in the fuel mix?

Unfortunately, fossil fuels will continue
to exist in the fuel mix of a sustainable
energy environment if there is limited
availability of energy resources to meet
the demand for it.
Developing countries in Southeast Asia
are still largely using fossil fuels, such as
the burning of wood, dung, crop waste
and coal to meet their energy needs at a
lower cost.
In order to manage this effectively,
technological solutions should be considered for long-term sustainability. To further push for sustainability, governments
in the region should also discourage the
use of fossil fuels by removing fossil fuel
subsidies to companies.
How can Southeast Asia create its
own sustainable oil and gas market?
With Southeast Asias oil reserves at 13
billion bbl, current levels of production
would only be able to sustain output for
14 more years. The regions gas industry
possesses current reserves of 7.5 billion
ton of oil equivalent, which will sustain
output for another 37 years.
The Southeast Asian oil and gas
industry can create its own integrated
and sustainable market by looking into
alternative energy supplies to uncover
However, concerns for the environment have pushed governments and

companies to consider renewables and
nuclear energy as part of the energy mix.
As countries in the region like Malaysia, Indonesia and Thailand are rich
in renewable energy resources, such as
solar, geothermal, biomass and hydro, it
is definitely possible to include these alternative sources of energy into the mix.
How can a business
reduce its carbon footprint?
More businesses are paying attention
to their carbon footprint these days and

as such, sustainability has become an
integral part of the corporate culture to
reduce the emissions of ozone depleting
substances and bring down the pollution
levels in our air and water.
A business that wants to reduce its
carbon footprint should look into maximizing resources across their operations
and tapping into alternative markets and
energy sources, such as renewable energy
in wind, solar and biofuels.
They should also consider technology
optimization and innovation to
improve business operations.
How does Eatons POWER
initiative help customers
manage energy effectively?
Eatons POWER initiative helps
customers in the oil and gas
industry efficiently manage
their energy needs by providing solutions that address
various needs, maximize efficiency, and reduce equipment
downtime.
These include products and
solutions that help to manage critical power functions
needed for uninterrupted
operations; saltwater corrosion protection for power
systems to weather harsh
environments; and solutions
that lessen downtime on downstream
equipment.
One example is Eatons Integrated
Power Assemblies (IPA) a turnkey solution that comes in a modular enclosure
called an Electro/Center.
The purpose of the Electro/Center is to
provide an onsite alternative for power
distribution and control needs to ensure
that mission critical systems are operational and without downtime. The IPA is
also supported by Eaton engineers round
the clock to help with any problem that
occurs. AOG
July August | AOG
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8/6/15 12:17 AM
Activity
OneSubsea, Subsea 7 form alliance
OneSubsea and Subsea 7 inked an agreement to jointly
design, develop and deliver integrated subsea development
solutions.
The duo will combine skills through a combination of
subsurface expertise, subsea production systems (SPS),
subsea processing systems, subsea umbilicals, risers and
flowlines systems (SURF), and life-of-field services.
OneSubseas CEO, Mike Garding says the technology and
expertise from Subsea 7 perfectly complements the firms
business strategy to offer a holistic approach to subsea development solutions.
While the CEO of Subsea 7, Jean Cahuzac says the combination of subsurface, SPS, SURF and life-of-field expertise is unique in its breadth of integrated service offering,
plus provides clients with the opportunity to significantly
improve subsea field economics over the lifetime of the
development.
Both OneSubsea and Subsea 7 are active solutions providers for the Asian oil and gas industry, including Australia. Subsea 7 has an offshore supply base in Singapore, which provides
support for its Asia-Pacific and Middle East operations.
PetroVietnam buys
Chevron Vietnam
Northern, Shangdong
takeover deal
Carlyle, Magna
invest in India
PetroVietnam has taken over Chevron

subsidiaries and assets in Vietnam, following government approval.
This will see the Vietnamese oil major
own Chevron Vietnam (Block B), Chevron Vietnam (Block 52) and Chevron
Southwest Vietnam Pipeline, as well as
gain operatorship for exploration blocks
located in the countrys continental
shelf.
Chevron Vietnam (Block B) holds
42.38 % operating interest in the PSC
covering Blocks B and 48/95 and Chevron Vietnam (Block 52) holds 43.40%
operating interest in the PSC covering
Block 52/97.
Chevron Southwest Vietnam Pipeline holds a 28.7% working interest in
a pipeline project that would deliver
natural gas from offshore to gas users in
Vietnam.
The Block B gas project is PetroVietnams main oil and gas project, says
Nguyen Xuan Son, chairman of the members council of PetroVietnam.
It is of major significance contributing to ensure the energy security of the
country and promoting the socioeconomic
development of the region.
The shareholders of Norwegian driller

Northern Offshore have approved a
takeover deal by Chinas Shangdong
Offshore.
The acquisition will be done by amalgamation according to the law of Bermuda
for US$0.96 per share, valuing Northern at
$164.4 million.
After the acquisition, Northern Offshore will be delisted from the Oslo
Stock Exchange and will stop shares
trading. The main shareholder in the
Norwegian offshore company is John
Fredriksen, owner of the oil tanker company Frontline.
The acquisition of Northern
Offshore is a positive step in our vision
of building a high-performing offshore
drilling organization to meet the
current and future needs of the global
exploration and production sector,
says Chinese company Shandong
Offshore.
Northern Offshore currently owns four
drilling rigs operating in the North Sea,
South Asia and West Africa. Also among
the fleet is one floating production unit
and two jackup rigs currently under construction.
Carlyle Group is committing to invest up

to US$500 million in Magna Energy Ltd.,
an Indian upstream oil and gas company
led by Dr. Mike Watts and Jann Brown.
Magna is targeting the building of acreage positions in the Indian subcontinent,
with the objective of creating a full-cycle
oil and gas company through acquisitions
and local licensing rounds.
Its expertise combined with additional capital and significant industry
knowledge from Carlyle will help further
develop the local oil and gas industry
across the Indian subcontinent, leading to
greater energy security, job creation and
economic growth.
Funding for the investment will come
from Carlyle International Energy Partners
(CIEP), a fund that focuses on oil and gas
exploration and production, midstream,
and refining and marketing in Europe,
Africa, Latin America and Asia.
Brown and Dr. Watts say there is strong
growth potential in countries such as
India, Bangladesh and Myanmar. They
look forward to helping to drive economic
growth in the Indian subcontinent by
bringing new technology and capital to
the local oil and gas sector.
28 AOG
| July August 2015
aogdigital.com
028_AOG0815_Activity.indd 28
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Ad Index
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aogdigital.com
029_AOG0815_ad index.indd 29
29
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Numerology
Number of producing wells in Luda 10-1 oil field in
China. See page 6.
US$458million
Russian Nagumanovskoye field proven
gas reserves. See page 8.
Vallianz Holdings contract

amount with Middle East oil
major. See page 7.
5.8Bcm
2021
Year Qatari LNG contracts with

Japanese buyers ends. See page 14.
The year India will receive LNG imports from the US.
See page 14.
450ft
9648
2017
Height of TRIYARDS first lattice leg

liftboat. See page 16.
Number of patent infringement cases filed in

Chinese civil courts in 2014. See page 20.
US$500million
Number of people in Zawtika project procurement

team. See page 18.
30 AOG
13
Amount Carlyle Group

plans to invest in India.
See page 28.
11
| July August 2015
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ASIAN OIL & GAS

Qatar to face rising

a better way to view

+ 200 ft. (60 m)

High-visibility level indicators and transmitters from

sight glass gauges.

5 2Q 2015 losses and cutbacks

10 Filipinos still in demand abroad

Mature markets in the Middle East and Asia continue

12 Making the most of M.O.S.T.

14 Qatar LNG challenged

16 Fabrication scales new heights

18 COOEC goes international

20 Protecting IPR in China

24 China eyes Russian reserves

27 Powering energy management

David Farmer, Eatons vice president of global projects for

Onshore construction of the

A capsule view of interesting industry statistics.

Subsea Innovation and Efficiency

August 11-13, 2015

Sponsorship & Exhibits:

revenues were $37 billion, compared to $56 billion a year ago.

ASIAN OIL & GAS

Atlantic Communications LLC

Design & Layout

John Lauletta (N-Z)

National Oil Co. (ADNOC) and its wholly

2016. CNOOC operates Luda 10-1 with

project offshore India.

phase of the hull and topsides of the

NIDO SHOWS GALOC

Papa New Guinea

Russia, a well was completed using

North African oil field concession jointly

Espiritu-Gaspar: Over the last decade, there has been a

Image from iStock.

Cabiles: Here in the Southpointe Industrial Park in

Southwestern Pennsylvania, where I work, at least four major

gas companies here, the demand for

Filipinos will most likely weigh

such as Malaysia, Singapore and

Which countries will look to employ Filipino

Espiritu-Gaspar: Mature markets in the Middle East, such

Espiritu-Gaspar: They are in high demand for both offshore

Making the most

during subsea well abandonments.

Wellhead retrieval with M.O.S.T. tool.

Weatherford P&A operations in Vietnam.

Cutting and pulling uncemented 20in x

Australia case study

Aung Din is a region sales manager for

Cham Soon Hoe is Weatherfords regional

lthough Qatar is the largest exporter of liquefied

Qatars LNG accounts for 80% of all LNG exports to Asia.

Halul offshore platform.

industry is split between many different companies, Salameh

Qatargas LNG ship. Photos from Qatargas.

newer importing nations like Indonesia, Malaysia, Pakistan,

scales new heights

Liftboat hull fabrication. Photos from TRIYARDS.

ffshore vessel fabrication and engineering solutions

Ho Chi Minh City yard.

Our stepped up presence in large liftboats demonstrates