TOPICS OF INTEREST
What Does China’s LNG Import Tax Mean for the US?
Industry analysts fear bad news for producers, as Chinese demand is expected to be a significant driver in new LNG production. China accounted for 15% of US LNG exports in 2017.
Cheniere and Vitol Sign Long-Term LNG Deal
The contract calls for Vitol to purchase 700,000 tonnes annually over a 15-year period, providing some optimism for companies hoping to secure similar long-term deals.
Private Equity Backs First Sub-Saharan Africa Regas Terminal
The construction of an LNG regasification terminal in Tema, Ghana, in addition to the first delivery of gas from the offshore Sankofa field in August, is decreasing the country’s reliance on liquid fuels and imports. About 80% of its power generation requirements will be met with gas.
Eni Cuts First Steel for Coral South FLNG Vessel Hull
The ceremonial event took place at Geoje Island, South Korea. Startup of LNG production in offshore Mozambique’s Area 4 is expected in 2022.
EPA Proposes Relaxed Methane Emissions Regulations
The proposal would rollback requirements for testing and fixing fugitive methane leaks in oil and gas operations. It would save millions in regulatory costs, but the estimated increase in methane emissions is controversial.
AI Aims To Predict Operational Behaviors, Alert of Potential Hazards
Unstructured data, such as process logs, safety reports, and public records, make up the bulk of data produced from the oil field. Emerging NLP technology has been designed to help make sense of this data, enabling better insights into near-accidents.
Qatargas and PetroChina Sign 22-Year Deal
Qatargas will provide 3.4 mtpa of LNG to China. PetroChina signed a 22-year agreement with the world's largest LNG-producing company.
For Download: The EPC Engineering Sequence Workflow
The EPC engineering workflow is synopsized as a one-page view.
Upstream Natural Gas Capex Forecast To Peak in 2025
Gas is forecast to overtake oil as the world’s primary energy source in 2026. LNG, with capacity expected to double by the late 2040s, will connect the shifting sources of gas with changing demand centers.
Santos Acquires Quadrant Energy, Takes Ownership of Dorado
The $2.15-billion deal gives the company an 80% ownership stake in what could be one of Australia’s largest offshore discoveries in years.
Standardization and Cybersecurity Go Hand in Hand
How can communication standards help companies create and enforce stronger cybersecurity protocols? What roles do people and technology play in securing assets? Industry experts look at these questions and examine other drivers of the digital oil field.
Fueling the Oil Field: Can Natural Gas Satisfy Demand?
A new paper from ADI Analytics examines the circumstances in which natural gas could become an attractive method for fueling oilfield equipment.
Repsol Establishes Model for Venture Capital Investment
The Spanish E&P company plans to invest more than $11 million by the end of 2018 on startups working in established priority areas, which include resource reuse and sustainability measures.
LNG To Be Used in Electric Peak Load Shaving
The engineering company Cosmodyne will work directly with the utility company and its EPC contractor for the project, which will utilize its LINEX natural gas liquefier.
US Steel Tariff Exclusion Process Leaves Trail of Confusion
Operators are increasing capital budgets in the wake of tariffs and quotas initiated by the US government on steel imports, and the product exclusion process has revealed a host of other issues. If the tariffs are here to stay, what does industry hope to see moving forward?
Machine Learning and AI Streamline Automated Maintenance Reviews
Machine learning and artificial intelligence technology offer offshore operators the chance to automate high-cost, error-prone tasks to avoid the effects of inconsistency and errors in analysis, improving efficiencies and safety.
Driftwood LNG Terminal Construction Scheduled for 2019
Tellurian remains on track to receive all regulatory approvals and begin work on the export terminal in Louisiana, with an eye on a 2023 startup.
Equinor Submits Phase 2 Plan for Johan Sverdrup to Norway Regulator
Equinor submitted the development plan for Phase 2 of the Johan Sverdrup project on 27 August with an increased resource estimate and a cut of NOK 6 billion in investment costs.
Offshore Survey Shows Shift From Cost Cutting to Expanding Operations
An offshore survey identified a decrease in focusing on cost cutting and an increase in preparing to expand operations. With the oil prices above $60/bbl the impetus for negotiation for lower prices by companies and service providers appears to be waning.
The Grand Challenge of Carbon Capture and Sequestration
Even with the wealth of experience already in place within the oil and gas industry, the obstacles to advancing CCS to the forefront of greenhouse gas mitigation technologies remain significant.
LNG Moves Closer To Becoming a Fuel for Marine Vessels
Three companies are collaborating to develop the equipment needed to make LNG a feasible alternative fuel for ship owners and operators.
The Effect of CO2 Injection on Corrosion and Integrity of Facilities
The paper discusses the main factors affecting CO2 corrosion, provides an assessment of what to look for in major equipment, and details recommended material of construction and corrosion mitigation/control methods.
Case Study: Design of Injection Facilities for CO2 Recovery
A pilot project demonstrates that facilities design plays an important role in providing sources of CO2 for the gas-handling process for injection into a carbonate formation as a tertiary recovery mechanism.
Galvanizing Stakeholder Support for Carbon Capture and Storage
Collaboration is critical to achieving recognition of the scope and value of carbon capture and storage and achieving acceptance for specific projects.
Surface-Facilities Design for First CO2 EOR Project in Saudi Arabia
A demonstration project of carbon capture, utilization, and storage through enhanced oil recovery was conducted in Saudi Arabia. Surface facilities for such projects are expensive to build and involve tradeoffs in options based on economics for a given set of conditions.
Combining Gas-to-Wire Technology With Carbon Capture and Storage
Natural gas, coupled with carbon capture and storage (CCS), could provide cheap and reliable energy in the long term and mitigate climate change. Gas-to-wire (GTW) generates electricity from natural gas at or near the field. This study applies an integrated GTW/CCS scheme to a gas-production field.
Natural Gas Pipeline Capacity to South Central US To Reach 19 Bcf/D by Year's End
With new projects scheduled to come on line later this year, the region, which mostly comprises states along the US Gulf Coast, will shift from being a source of natural gas supply to a source of growing demand.
Savvy Separator: 5 Lessons To Simplify Separator Troubleshooting
Troubleshooting and solving separation problems takes a combination of analytical tools, experience, and a knack for investigation. These 5 lessons provide a starting point for assessment.
Aqualis Offshore Secures Deal for Total's Egina FPSO
The company will manage the position-keeping for the deepwater project offshore Nigeria, which is scheduled to start production later this year.
Trafigura Submits Permit for First US Deepwater Oil Port
If approved by the US Department of Transportation, the port facility would allow VLCCs and other tankers to directly load cargo, potentially removing a major hurdle for US crude oil exports.
RDS and Kavin Engineering Form Alliance To Design and Engineer Upstream and Midstream Projects
RDS, a KCA Deutag division, and Kavin Engineering and Services entered into a strategic alliance to jointly pursue design and engineering projects across the upstream and midstream oil and gas market. Last month, KCA Deutag agreed to form a joint venture with SOCAR.
KBR Awarded FEED Contract for Nigeria LNG Project
KBR will head a joint venture with TechnipFMC and JGC to provide a basic design package and EPC bid for the Bonny Island expansion.
McDermott Nets Subsea Tieback Contract for Pemex's Ayatsil Field
The deal covers the installation of a pair of rigid flowlines for the shallow heavy oil field, Pemex’s largest discovery to date. Work is expected to be completed early next year.
North American Shale Activity Gives Boost to OFSE Business
The oilfield services and equipment sector, while optimistic, has not yet seen the effects of the improved oil price in the recovery of its overall business.
New Research Explores Effective Produced Water Treatment
As operators seek lower water management costs, a pair of studies examines methods and technologies that could have a major impact on treatment and reuse for hydraulic fracturing operations and beyond.
Gas Flowing From Ichthys LNG Project
The long-awaited Ichthys LNG Project off Western Australia has finally started gas production. LNG liquefaction is expected in a few weeks.
Bureau Veritas Issues FSU, FSRU Conversion Guidelines
With interest in FSRUs and FSUs picking up, the conversion of LNG carriers offers a fast route to operational availability.
Total Begins Production at Kaombo Deepwater Project
Sanctioned in 2014, the project is the largest deepwater offshore development in Angola. It will produce an estimated 230,000 BOPD from six different fields at peak.
TechnipFMC Nets Contract for Gorgon Stage 2
The contract covers the installation of umbilicals, flying leads, and manifolds for the project, which aims to expand and upgrade subsea facilities for the gas field located offshore western Australia.
Analytic Models Propose Wastewater Disposal Facility Locations in Marcellus
Researchers at Texas Tech University have released a study into wastewater production and disposal in the Marcellus Shale, proposing disposal hubs across the state of Pennsylvania that could reduce trucking distances.
Congestion Relief: Enterprise To Develop Offshore Texas Crude Oil Export Terminal
The offshore export terminal, capable of accommodating very large crude carriers, could provide access to international markets in Asia and Europe—and higher prices—for Permian, Cushing, and Eagle Ford crude oil.
Development Plan for Rovuma LNG Phase 1 Submitted to Mozambique Government
Mozambique Rovuma Venture submitted the development plan for the first phase of the project, which will produce, liquefy, and market natural gas from the Mamba fields located in the Area 4 block offshore Mozambique. An FID is scheduled next year, with production expected to begin in 2024.
Testing of New Pipeline Inspection Device Begins in Bakken
These balls have the potential to alter how pipeline inspections are done, and a consortium of pipeline operators and industry experts in North Dakota is examining just how well this emerging technology can handle the small-diameter pipelines in the area.
Baker Hughes To Sell Its Natural Gas Solutions Business
BHGE will sell the division, acquired by GE in 2011 when it bought Dresser, to a private equity investment firm, and a provider of products and services for the distribution and usage of natural gas in Italy. The combined value of the two deals is $375 million.
Development of Barrier-Fluid-Less Subsea Pumps Gains Momentum
The latest entrants to tackle the development of barrier-fluid-less subsea pumps are Saipem and Curtiss-Wright Corp., who agreed to collaborate in designing and building pumps for water treatment and injection.
Total Acquires Engie’s LNG Assets, Becomes No. 2 in Global Market
The $1.5-billion deal delivers a world market share of 10%, including a 16.6% stake in the US Cameron LNG project.
AUVs Surface as Next-Gen Data Gathering Platforms
As operators look for cost-efficient ways to address the challenges in facility maintenance and deepwater exploration, autonomous underwater vehicles are being developed for complex data gathering and advanced tasks.
Shell Awards Contracts to GATE Energy, Subsea 7 for Vito
GATE will provide facility commissioning and Subsea 7 will provide a pair of infield production flowlines and the umbilical system for Shell’s recently sanctioned deepwater GOM development.
Alaska LNG Project Seeks Investors
The Alaska Gasline Development Corp., a state-owned corporation, is preparing an equity offering for this summer for its $43-billion LNG project. BP agreed to sell natural gas from Prudhoe Bay for export to Asia-Pacific.
New Regulations To Fast-Track Brazil FPSO Deployment, Boost Presalt Oil Production
New local content regulations could speed up the pace of presalt oil production by more than 21 billion bbl by the mid-2020s. Karoon and Parnaíba Gás Natural are the first companies to apply to change their contract terms. Petrobras, Shell, BP, ExxonMobil, Petrogal, and Anadarko are also interested.
McDermott Makes Headway With New Projects
The engineering and construction company announced that it had achieved a pair of milestones for BP’s Angelin and Pemex’s Abkatun-A2 platforms, both of which are scheduled for delivery within the next two fiscal quarters.
Investigation Begins of Leak at Hammerfest LNG
The Petroleum Safety Authority Norway launched an investigation into an LNG leak at the Hammerfest LNG plant on 17 June.
Permian Water Market Ramps Up Activity
As rig counts continue to go up in the region, the Permian water disposal market is expected to see growth through 2021 with a possible record-high 8.4 billion bbl next year.
Growth in Global LNG Trade Continues To Rise
A new report from GIIGNL shows increased liquefaction capacity in Australia and the US as the key drivers in LNG supply growth, while Asia has been the leader in global LNG import growth.
Cheniere Seeks Permit To Feed Gas To Corpus Christi LNG Train
Cheniere Energy requested issuance of the feedstock permit from FERC by 29 June. The FID for Train 3, estimated at approximately $3 billion, was announced last month. Bechtel got the green light to proceed with EPC work, subcontracting with BHGE for the gas turbines to drive compressors.
US LNG Facilities: A Closer Look
The US is expected to add more than 6 Bcf/D in liquefaction capacity over the next 3 years thanks to a slew of new facilities expected to be commissioned. This database shows the facilities currently producing and those that are scheduled to start up.
SPE Offshore Europe 2019 Chair Appointed, Theme of Conference to be License To Operate
Michael Borrell, senior vice president, North Sea and Russia at Total, was appointed conference chair. "Our License To Operate: Breaking Through to Excellence" will form the theme of the biennial conference and exhibition which will take place in Aberdeen from 3–6 September.
Siemens and Bentley Systems Collaborate on Process Industries Academy Initiative
The goal is to support the development and sharing of best-practice approaches for project delivery and asset operations using cloud services and digital workflows in engineering and operations.
Construction Begins on Pipeline Connecting Finland and Estonia
The offshore gas pipeline will connect the gas markets of Finland and Estonia, enabling integration with the European Union’s common energy market
Huisman and RAMLAB Initiate Consortium To Produce World’s Heaviest 3D Printed Steel Crane Hook
The hollow hook will weigh close to 1000 kg and have a safe working load of 325 metric tons.
RAMCO Agrees to Services Contract With Equinor
The $10 million/year contract covers the inspection and mobilization of casing and tubing at two Norwegian sites and includes extenstion options in 2020 and 2022.
Repsol Targets Upstream Production in Capex Boost
As part of a revised strategic plan, the Spanish company says it will invest more than $9 billion on its overall operations by 2020, with much of it going to its upstream business unit.
UN Cautions Countries Eyeing Shale Development
A new report on shale gas from UNCTAD addresses the balance between providing affordable energy to developing countries and the agency’s climate change goals.
Bureau Veritas Publishes UKCS Decomm Guide
Bureau Veritas made available its guide to decommissioning regulations in the UK continental shelf.
The Benefits of Flying Unmanned Aircraft Vehicles at Scale for Asset Managers
Ground sensors on assets over a broad area have limited returns on investment if the asset life cycle is less than 10 years, and obsolescence of the technology if it exceeds 10 years. Complementing sensors with aerial remote sensing at scale may help to mitigate these issues.
Shell/BHGE Study Paraffin Inhibitor Testing Techniques
Cold finger tests are a standard method for testing paraffin inhibitors, but there is no standard testing protocol, and sometimes different labs can see inconsistent results. Shell and BHGE studied the root causes of these issues.
Baker Hughes Opens Center for Inspection Technologies
BHGE opened its largest Customer Solutions Center globally for its inspection technologies business.
Savvy Separator: Oversizing Separators—Too Much of a Good Thing?
Oversizing a separator ensures meeting the life cycle needs of a facility, but are we setting ourselves up for failure in the long run? With peak rates typically being short-lived at best, or at worse, well beyond actual production rates, more weight needs to be given to the tail-end of production.
Hurricane Energy Begins Offshore Installation of Lancaster EPS
Logistical work is taking place in advance of subsea installation activities, which have the large UK North Sea field on track for first oil in 2019.
PDO Partners With Energy Technology Accelerator
Petroleum Development Oman has partnered with SparkLabs Group, a global venture and accelerator group, and Phaze Ventures, a new technology group focused on innovation throughout the Middle East, to launch a new accelerator focused on energy technology in the region.
Financing FLNG Facilities—What Lies Ahead?
Although the FLNG concept has been around for decades, only three units are in the water and operational or under commissioning as of 2018. As the mitigation of technological risks is demonstrated, commercial risks become the focal point and the challenge to financing the capital-intensive projects.
A Model for Evaluating Inlet Systems to Gas/Liquid Separators
Learn about the guidelines for early stages of projects and a method for evaluating the effect of inlet piping and devices on gas/liquid separator performance and useful tools to evaluate the adequacy of a proposed design. [Note: Updated on 22 May, the article contains a number of corrections.]
Supply Chain Consortium Launched for Decommissioning Services
Global spending on oil and gas decommissioning is expected to be $13 billion per year by 2040. The launch of a collaborative supply chain approach to global decommissioning offers an end-to-end solution to reduce the decommissioning burden, risk, and cost for operators in Europe, Asia, and Americas.
The Trump Steel Tariff: How Will It Affect Industry Operations?
How will a US steel tariff affect the oil and gas supply chain? Industry criticism points to a noticeable effect on construction expenditure and jobs, but where will the pain be most felt?
Catalysts for Offshore Progress: Service Company Partnerships, M&As
Executives from several service companies involved in the offshore space—including two sides of a recent hostile takeover bid—came together at OTC to discuss the virtues of collaboration and rationale behind M&A.
Efficiency Focus Helps Industry Chase Deepwater Capital
The president of Chevron North America E&P examines how standardization and operational efficiency is crucial for operators looking to bolster their deepwater portfolios.
Kreuz Subsea Mobilizes New-Built Vessel, Enters Into JV in Brunei
Kreuz Subsea mobilized the Kreuz Challenger, a diving support vessel, as part of its 7-year contract with Brunei Shell Petroleum Company. The contract runs until 2022 and includes inspection, repair, and maintenance services to be carried out on offshore oil and gas structures.
McDermott Rejects Acquisition Offer From Subsea 7, Plans To Move Forward With CB&I Deal
McDermott’s board of directors rejected an acquisition offer from Subsea 7, which called for McDermott to abandon its planned $6-billion combination with CB&I. McDermott’s special meeting of stockholders, which was scheduled earlier to address the CB&I deal, will be held on 2 May.
BP Starts Pair of North Sea Field Developments
Scheduled for 2020 startups, the Alligin and Vorlich Fields are expected to produce 30,000 gross BOE/D.
Maersk Drilling and Maersk Supply Service Establish JV for Decom
The joint venture will include work on P&A, towage of floating units, and removal of subsea infrastructure, with the ultimate goal of providing the full end-to-end process for decommissioning.
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ITEMS OF NOTE
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20 July 2018
16 February 2018
18 December 2017
28 November 2017