18 SPOTLIGHT

THE PRESS AND JOURNAL December 2012

Energy

Energy

THE PRESS AND JOURNAL December 2012

SPOTLIGHT & NEWS 19

Subsea 7 bags $800m SURF contract

SUBSEA SOUNDINGS
BY JEREMY CRESSWELL Under the terms of the contract, Subsea 7 will deploy various pipelay, construction, diving, ploughing, trenching, and survey vessels during the offshore period. The newly-delivered Seven Borealis, which adds considerable pipelay and construction firepower to Subsea 7s fleet has been allocated the task of installing the Martin Linge gas export line. Engineering and project management starts immediately at Subsea 7's Stavanger office, with offshore operations due to get going in the spring of 2014. Contract duration is to be around four years. Stuart Fitzgerald, Subsea 7's Norway vice president, said, This project is the largest SURF contract ever awarded on the Norwegian Continental Shelf, and as such represents a step change for our sector in Norway. This project builds on the good experience we have had with Total in Norway over many years, including the recent successful delivery of the fasttrack Atla tie-back project which commenced production during October. Subsea 7 looks forward to successfully delivering the Martin Linge project, with safety and quality at the forefront throughout." The 189million barrels oil equivalent Martin Linge development has been on Totals list of potential candidate projects book for many years.

Centralisers work goes to Aquaterra

Aquaterra Energy has been contracted to design and instal 260 centralisers for BP Azerbaijan in its latest development on the West Chirag field platform in the Azeri-Chirag-Guneshli (ACG) oilfields in the Azeri sector of the Caspian Sea. The contract includes pre-engineering the casing requirements and devising a centraliser package for tieback operations. Aquaterra said that the West Chirag platform has 48 drilling slots, of which 20 are deemed tieback slots. A maximum of 17 wells will be tied back to the platform during BP's pre-drilling programme and will require centralisation.

Its managements responsibility no one gets hurt

The pressure to deliver means some bosses still take ill-advised short cuts

Record contract award builds on Subsea 7s good experience with Total in Norway
Contracting major Subsea 7 has been awarded a subsea, umbilical, riser, and flowline (SURF) contract valued at some $800million by Total for the development of the gasfield Martin Linge (formerly Hild) located 180km west of Bergen in the Norwegian sector of the North Sea, block 30/7. The contract, a record for Norwegian subsea, comprises engineering, procurement, construction, and installation (EPIC) of the complete subsea facilities on the field including: a 160-km power cable from the Martin Linge platform to Kollsnes; a 70km export pipeline and associated valve structures, umbilical, and spools for the gas export system; a 55-km fibreoptic cable; and a 3km pipeline and riser system from the Martin Linge platform to the floating storage unit. The contract also includes transport and installation of the mooring system for the fields floating storage unit.

HSEQ Essentials

STUNNER: Subsea 7 has ordered a further large dive support vessel for North Sea and global operations

Allan Dick
Under new rules to be introduced next April, Health and Safety Executive checks will no longer be routinely carried out on premises considered to be low risk. The new plans mean that shops, office, pubs and clubs will no longer face health and safety inspections. The Government says it will scrap or change more than 3,000 regulations and says its drive to cut bureaucracy will save companies millions of pounds. It is business secretary Vince Cables response to his belief that excessive regulation costs time and money. The likelihood though is that it will result in giving the green light for those businesses who have a mind to do so to just cut corners with potentially dire consequences. Its perhaps just as well then that those operating in higher-risk areas such as the energy sector will still face HSE inspections and in many cases with more attention to detail and due diligence. Surely though, whatever your business, we all need to play our role in ensuring a safe workplace, and ultimately its in the boardroom where the prime responsibility sits to create the correct safety culture for their organisation. Managements style of leadership is crucial in ensuring processes are simple, fit for purpose, widely communicated, and staff compliance with health and safety is achieved through good example. It is key for employers to stop and think what could happen to their employees and take the correct mitigation measures to prevent injury. Why do tragedies like the much

This project is the largest SURF contract ever awarded on the Norwegian Continental Shelf

At one point this isolated discovery located close to the UK-Norway boundary was being considered as a tie-in candidate to Totals Alwyn field complex. Eventually Total opted for a standalone development, the capex of which is around $4.6billion. Core of the projects infrastructure is to be an integrated wellhead, living quarters and production facility with a life expectancy of 30 years. The facility will be remote controlled from an onshore base in Stavanger via an undersea cable from Kollsnes, and will also receive power from land. Gas will be exported via a tie-in to UK gas transportation infrastructure.

Associated oil will be piped to an infield storage vessel (capacity 620,000 barrels) for processing before loading aboard shuttle tankers for export. The field is operated by Total with 51% interest in partnership with Petoro, holding 30%, and Statoil with 19%. Meanwhile, Subsea 7 is maintaining investment momentum by ordering a new dive support vessel (DSV). The 123m vessel will be built by Hyundai in South Korea and is scheduled for delivery in 2015. With accommodation for 110 people, the DSV will incorporate an 18man saturation system supplied by Drass and rated for 300m with two

moon-pool deployed three-man diving bells and two 18-man hyperbaric life-boats. The vessel will be equipped with six main engines in three separate engine rooms designed to maximise performance in Dynamic Positioning (DP) Class III. Subsea 7s commercial VP, Steve Wisely said the company is working with HHI, Drass and Wartsila Ship Design to deliver the complex new generation vessel. This will be the third new-build DSV to join the Subsea 7 fleet in recent years, having taken delivery of the Seven Atlantic in 2010 and Seven Havila in 2011.

Prosafe orders another floatel

Jurong Shipyard in Singapore has received a $350million order from Prosafe for a second harsh environment semi-submersible accommodation rig. To be named Safe Zephyrus, it is to be delivered near year-end 2014. The GVA 3000E class design will be equipped with a DP3 (dynamic positioning) system as well as 12-point mooring arrangement. It will have 450 single berth cabins be similar to the Safe Boreas presently in construction at Jurong and constructed to comply with Norwegian regulations.

Cameron and Schlumberger team up to form a mighty subsea force

Cameron and Schlumberger have established OneSubsea, a joint venture to manufacture and develop products, systems, and services for the subsea oil and gas market. It is a move that is attracting considerable attention and which has even been lauded on Wall Street. The JV marks a strategic integration of the subsea-related interests of two of the oil and gas industry bluechip brands. According to Cameron, the new company will offer a step-change in reservoir recovery for the subsea oil and gas industry through integration and optimisation of the entire production system over the life of the field. Moreover, the US oilfield products and services heavyweight said that the integration of the production system will be accomplished by combining their reservoir knowledge and wellbore technologies, with industryleading subsea technologies, all together delivering enhanced productivity, reliability and integrity. Cameron and Schlumberger have agreed 60:40 ownership of the joint venture, respectively, with the transaction subject to regulatory approvals and other customary closing conditions. Under the terms of the formation agreement, Cameron will contribute its existing subsea division and receive $600million from Schlumberger which, for its part, will contribute its Framo surveillance, flow assurance, and power and controls businesses. Cameron will manage the joint venture and will consolidate it for financial reporting purposes. Quite what this will mean for subsea centres like Aberdeen and Bergen remains to be seen. However, both groups have a large presence in Europes Energy Capital. Though fundamentally still Norwegian, Framo, for example, has a lively presence in Aberdeen and the company has lately Schlumberger CEO Paal Kibsgaard said: The new joint venture, which combines the forces of two worldclass companies, is uniquely positioned to optimise complete subsea production systems and help our customers improve production and recovery from their subsea developments. The broad scientific and technology platform that Schlumberger brings will enable a total system approach, leading to a unique and differentiated offering in this rapidly growing market." Both companies are emphasising that a key priority of the JV will be strengthening research and engineering investment, including complementary projects with the parent companies, towards the integration of the complete subsea production system from pore space to the export point, in order to unlock reservoir potential from subsea developments.

Parcom snaps up GustoMSC

Struggling SBM Offshore has agreed to the sale and transfer of GustoMSC to Parcom Capital for about $185million as part of its divestment of non-core assets. SBM said the purchase price will be paid in cash at closing. The deal is a first step in its $400million divestment programme announced in August. GustoMSC is a leading design of mobile offshore drilling units and other specialist vessels.

publicised loss of the rig Deepwater Horizon still happen? It is because, even with clear safety procedures in place, the pressure to deliver means that management still takes short cuts to save time and money. So it takes an accident for some companies to recognise the crucial importance of health and safety at work and yes its true that many firms (and not just SMEs) are still dismissing the legislation as a costly nuisance, instead of a vital way of making their workplace safer and protecting lives. It is surely tragic if people have to wait until there is injury or a fatality in their company before management realises the importance of health and safety to their business. Some companies remain ignorant about the legislation and don't understand that it is about protecting their staffs well-being. However, thats no excuse. Peoples lives are being put at risk and there are still too many examples where management are not thinking about safety first. Organisations need to be clearer, not so much about what they are saying but what they are doing. It involves more genuine empowerment of their staff to ensure that whats being done in practice is safe and aligned to their safety management systems. At FQM we view health and safety not as an add-on but as an integral part of a companys overall management system and a way of demonstrating how they do business. This should be how organisations define how things are actually done, not what management think is being done. However, HSEQ (health, safety,

TRAGIC: Had senior management done its job properly the Deepwater Horizon tragedy would not have happened

Framo has invested heavily in a new headquarters complex just outside Bergen, Norway

invested heavily in its new complex at Horsoy and is in a prime position to play a major role in the new JV. Jack B. Moore, Cameron's chairman, president, and CEO, said, Our new venture with Schlumberger pro-

vides a powerful marriage of their oilfield services technology and our subsea equipment heritage. It leverages Cameron's flow control expertise, world class manufacturing, and aftermarket capabilities."

At FQM we view health and safety not as an add-on but as an integral part of a companys overall management system

environment and quality) cant be managed from the office. Quality of performance comes from individuals actions, driven by what they think and feel. This is heavily influenced by the culture set by management. Remember your lowest standard can become your subordinates or contractors highest. So unfortunately, it takes accidents, incidents and even disasters like Deepwater Horizon to remind all management teams, and not just those in the high risk energy industries, to take their health and safety responsibilities seriously. Management should always be considering the potential, unintended consequences of their decisions at all times and none more so in these recessionary times when corporate priority is focused on time equals money. Failure to do so will always prove the more expensive in cost and reputation. Yes, improving the UKs workplace safety record should be the responsibility of all. Yet extolling a more positive message, rather than one ringing fear and trepidation in businesses is still the challenge. This is not helped by todays

blame culture dominance and the labelling of Elf and Safety as something of an expensive and burdensome joke. But until management at the very top take the initiative to put the correct safety procedures and training in place, its only a matter of time before you or your company suffers and thats no joke. Allan Dick is the managing director of HSEQ consultancy and training organisation FQM

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