dew journal november 2012

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November 2012 DEW JOURNAL 1

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2 DEW JOURNAL November 2012

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Chairman Editorial Board andChief Editor

Arun Kumar SinghalDirector Shrey SinghalDirector EditorialSatish Kumar Mathur Editorial Advisor - UpstreamProf (Dr.) Nikolay P. ZapivalovChairman of Novosibirsk Centre of Russian Academy of Natural Sciences

and Professor of Novosibirsk University,RussiaEditorial Advisor - Midstream &DownstreamDr. Himmat Singhformer Distinguished Professor,Hydrocarbon Engineering, University of Petroleum and Energy Studies, former

Advisor (R&D), Bharat PetroleumCorporation Limited, former Sr. Dy.Director (Scientist G), Indian Instituteof Petroleum

Publisher Arun Kumar SinghalAdvertising Manager Ms. SarojCirculation Manager Pramil Khanduri

Design & Graphics Abhinav AryaFinance Manager Pramod Kumar Regional Coordinator - New DelhiMukesh GuptaRegional Coordinator - MumbaiJ. ChakarbortyRegional Coordinator -South East Asia & ChinaTony Chen W. K.

Annual Subscription Rs. 2500 US $120 80 (inclusive of Postage).Cover Price US$25 20 Rs.2 50For details of how to subscribe to Drilling& Exploration World journal and rates for individual s countries email :[email protected]

Remit all payments in favour of TECHNOLOGY PUBLICATIONS For details of wireline transfer of payment, contact the Publisher.Prepress processing by Shiva Colour ScanPrinting by Laxmi Art PressDrilling & Exploration World (DEW) publishedsince 1989 by Technology Publications fromDehradun is an internationally circulatedEnergy and Oil & Gas journal. The journalholds the dis t inct ion of being the onlyMONTHLY Energy and Oil & Gas journalpublished from India.

Al l ri gh ts re se rv ed in re sp ec t of al lar t ic les , i l lust ra t ions, photography etc .published in Drilling & Exploration World(DEW). Reproductions or imitations areexpressly forbidden without the permissionof the publisher. The opinions expressed bycontributors (editorial and advertising) arenot necessarily those of the publisher/editor,who can not accept responsibility for anyerrors or omissions.

While every effort is made to ensure thatthe contents published in the journal arecorrect and up-to-date, the Publisher, Editorsand Advisors do not accept any responsibilityfor any error, omissions and factual lyincorrect statements published. This impliesfor both editorial and advertising contents.

Editorial and Advertising Office15/19, Kalidas RoadP.B. No. 271, Dehradun - 248 001(Uttarakhand) [email protected]@[email protected]. : +91 - 135 - 2740559Fax : +91 - 135 - 2740559

November 2012 - Volume 22, No. 01

CONTENTSISSN-097 1-7242 R.N.I. No. 51048/89 2012 Technology Publications

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Face to Face

Cover Focus

Special Report

30 Sercel launches the next-generationSeaRay 428 seabed acquisition system

56 Unanimous acceptance by experts of the growing solar sector in IndiaThe School of Petroleum Management, Pandit Deendayal

Petroleum Universi ty, Gandhinagar has taken theinitiative to bring together the stakeholders of solar industry in India for discussions and deliberations on issuesthat are of vital importance to the development of solar sector in India through Solar Conclave 2012

The SeaRay 428 has three new modular functionalities which extend the SeaRay systemscapabilities. First, while retaining the SeaRays keyadvantage of power supply through the line, the428 features an innovative in-sea module, theSBLU (Seabed Line Unit), which offers an unequal led37-km cable length capabil i ty and a twofoldincrease in l ine data rate to 16Mb/s. Second,coupled with the addition of a long-range opticalextender, the SeaRay 428 provides even greater

po ssibi l it ies for l in e snaki ng or lon g- of fsetrecording. Third, the SeaRay 428 can now alsointegrate unmanned satellite recorders, whichoffers greater flexibility during deployment androll-out while ensuring real-time quality controlof all system parameters and seismic data

Technology

GE is a key contributor and partner to the oil and gas industry worldoverMrinal Vohra, Chief Executive Officer, GEOil & Gas - India, Bangladesh and Sri Lanka

talks to Chief Editor DEW Journal

18

35 Intuition counts in successful explorationIain Bartholomew, Exploration and SubsurfaceDirector, Centrica and veteran explorer, answersquestions posed to him by DEW Journal related to oiland gas exploration

26 Worlds first buoyant tower successfully set up32 New subsea bolt tensioning solutions33 New spectroscopy service34 New ultra-high temperature non-aqueous drilling fluid37 Gaining a green light on well integrity

46 Floating solar field concept unveiled08 Douglas-Westwood expects largest growth to be offshore


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dewjournal.com From the Editor From the Editor From the Editor From the Editor From the Editor Event PreviewEvent PreviewEvent PreviewEvent PreviewEvent Preview

Forecasters have different views on oil supply for the future.However, most generally agree future oil demand will have to

be met by production from unconventional sources such asultra-deep water, oil sands, heavy oil and shale oil. As such,

aggregate exploration expenditure has been increasing at abouta 10 per cent annual increment since the 2008 global financialcrisis.

It is expected that more than US$600 billion will bespent by the global Exploration and Production (E&P) industryand the largest growth will without doubt be offshore.

In order to leverage against declining production,Operators are being forced to venture into remote and harsher locations. These projects require top tier equipment that cancost significantly more than the standard equivalent. Expertsestimate that ultra-deep installations will account for almost25% of the annual tree market by 2016. Importantdevelopments include the pilot projects in the Iara and Sapinhoafields and a series of EWTs in Sapinhoa, Libra, Iara, Francoand Iguazu fields. Prospects for manufacturers are thereforealso looking quite positive.

The Asia Pacific is also emerging as a deepwater market,alongside the regions of East Africa, Eastern India and theEastern Mediterranean, joining major deepwater plays in thegolden triangle of Brazil, Gulf of Mexico and West Africa.

There is no doubt that the subsea industry has arrived inthe Asia Pacific in a big way. A recent surveys suggest that theAsia Pacific is a clear leader in the current surge in globalsubsea oil and gas activity and it will stay that way for sometime to come. The region is also leading the world in the new

boom in subsea minerals exploration and development witha world class project already underway in Papua New Guineaand similar plans being entertained for other highly prospective

prospects in the Asia Pacific.With growing global focus on deepwater and subsea, as

well as LNG, opportunities for the regions engineering &construction companies and yards look set to grow in theyears ahead and it is likely that the majority of the worldsfloating rigs, production systems and subsea support vesselswill be built here.

The worlds leading subsea service and equipment providers have recognised these exciting developments andare undertaking significant expansions of facilities andmanpower in the Asia Pacific.

As operators face the dual challenge of sustaining their

production levels in mature regions and effectively exploitingthe uncapped reserves in growth areas, such as, West Africa,US Gulf of Mexico and Brazil, the potential for subsea capitalexpenditure has increased dramatically.

Advances in technology are increasingly being testedand deployed in response to the offshore industrys demandfor solutions to challenges, such as: deeper and harsher waters,sustaining production rates in mature developments, boostingflow rates in low pressure reservoirs, accommodating a larger number of fields tied back to host facilities and ensuring theenergy and cost efficiency of a project. Experts also expectsthat West Africa will be one of the key regions for implementingsubsea processing because of its already extensive deepwater

production, significant oil reserves and most importantly thegeographical distribution of its fields that require multiplewells being tied-back to one central processing facility.

I hope you will find the information in this issue interestingand value adding. AKS

MTA2013 set to redefine precision engineering

Asias foremost precision engineering event, MTA, isgearing up to return with a loud bang. The 19th edition of MTA, to be held from 9 to 12 April next year at Singapore,will see trade professionals hailing from all facets of Asiasdiverse manufacturing sectors converging on one

platform. These professionals have a firm goal to perusean expansive range of high end manufacturing capabilitiesspread across the exhibition show floor at the SingaporeExpo. Organized by Singapore Exhibition Services MTA2013 is Asias leading high-value manufacturing tradeshow. In tandem with industrys progress and demands,MTA2013 will be focusing on three core vertical sectors

Aerospace, Medical Technology and Oil & Gas. Withrising need for state-of-the-art equipment and techcapabilities for highly demanding manufacturingenvironments, MTA2013 will offer industry buyers a wide

selection of products and solutions specifically fashionedfor these sectors.With most of the worlds top metrology brands

having established their Asian HQ here in Singapore,the island city has become an important centre for highaccuracy and measurement technologies. MetrologyAsia2013, an area dedicated to metrology equipment,will gather the finest companies specialising in high-end test and measurement apparatuses and systems.

Two insightful conferences wil l be held inconjunction with the exhibition icOPEN2013 and PE

COI Annual Conference. To be held alongside MTA for the second time, the international conference on Opticsin Precision Engineering and Nanotechnology (icOPEN)is a timely platform to seek out latest developments on

precision engineering and nanotechnology from someof the industrys experts in these fields.

Organised by the Singapore Inst i tute of Manufacturing Technology (SIMTech), the PrecisionEngineering Centre of Innovation (PE COI) AnnualConference will be held as a one-day event on thesecond day of MTA2013.

MTA2013 will also incorporate iAutomation2013,MetalAsia2013, Outsource & Subcon 2013, ToolTech2013 and WeldTech 2013, all specialised events that cater to the individual needs of Asias manufacturing industry.


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The passing of Jodie Gillespie,Business Development Manager for Fugro Geoscience division, isreceived with great sadness. Jodievery tragically and suddenly

passed away on October 05, 2012.Jodie will be remembered as a

very beautiful woman both insideand out. She had sparkling eyes,

a radiant smile and possessed aloving, caring and warming spirit.She will be remembered for her friendliness and for her kind, sweetand cheerful way. She was a trueegalitarian, never prejudiced nor accepting of others social bias.Jodie was exceptionally intelligent and an amazing networker.

Jodie always represented her company, her industry and herself inthe most professional manner. Her honesty, integrity and her sense of responsibility was admirable. With each and every person she would be

totally engaged and interested in the conversation. All who met her could not help but like her, Jodie was one of the best.

Jodie was born and grew up in Belmont on the eastern shores of Lake Macquarie, New South Wales, Australia.

Jodie graduated with a B.Sc. from the University of Sydney in 1994.Her extensive geographical experience centred on oil and gas explorationas well as minerals. Earlier in her career, Jodie worked for Gerard Daniels,Paras Consulting, American Express and Geoterrex in both technicalfields and management consultancy. For the past six years Jodie wasBusiness Development Manager representing the Fugro Geosciencedivision. In recent years she also held the position of Chair for theInternational Association of Geophysical Contractors for the Asia Pacificregion. Jodie played a crucial role in representing geophysicalcontractors and lobbying for positive change when industry issuesarose with authorities and governments.

Her life was indeed cut short in this world, but Jodie was here longenough to gain the love and admiration of all those who knew her. Her

beautiful nature leaves an indelible legacy in the hearts and lives of her fianc, her parents, her sister, her brother-in-law and the host of relatives,friends and colleagues who had the pleasure of her wonderful company.She was an outstanding individual and a true professional.

Her loss will be greatly felt throughout the exploration industry.DEW Journal has lost a good friend.

Jodie, rest in peace. We will all miss you.- Editor

Jodie Gillespie of

Fugro passes away

Petro-EventsPetro-EventsPetro-EventsPetro-EventsPetro-Events

December 10-12, 2012KUWAIT, KuwaitKIPCE-Kuwait InternationalPetroleum Conference & Exhibition

www.spe.org/events/kipce

December 12-13, 2012MUMBAI, IndiaIntegrity and Risk Management of

Assets in Energy Sector Conference &Exhibitionwww.iet-group.net/events

January 21-23, 2013DOHA, Qatar Offshore Middle East 2013Conference & Exhibitionwww.offshoremiddleeast.com

January 28-30, 2013MUSCAT, OmanSPE Middle East Unconventional GasConference & Exhibition (UGAS)www.spe.org/events/ugas

February 15-17, 2013NEW DELHI, IndiaWorld Petro-Coal Congresswww.worldpetrocoal.com

March 06-08, 2013KUALA LUMPUR, Malaysia

Offshore Asia 2013 Conference &Exhibitionwww.offshoreasiaevent.com

March 09-12, 2013SINGAPORE, SingaporeThe 19th MTA 2013 - PrecisionEngineering Industry Eventwww.mta-asia.com

March 19-21, 2013 ACCRA, Ghana17th Offshore West Africa Conference& Exhibitionwww.offshorewestafrica.com

March 19-21, 2013BEIJING, China13th China International Petroleum &Petrochemical Technology andEquipment Exhibitionwww.cippe.com.cn/cippeen

March 24-28, 2013 ABU DHABI, UAE9th International SOGAT Conferencewww.sogat.org

April 16-19, 2013HOUSTON, USALNG 17 Conference & Exhibitionwww.LNG17.org


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Mr. John Westwood, a globally-renowned commentator on theenergy industr ies and currentlyGroup Chairman of energy businessadvisory firm, Douglas-WestwoodLtd, will be presenting the PlenaryKeynote at the OSEA2012International Conference inSingapore.

Focusing on the offshoreindustry, Mr. Westwood will impart

his insights on the opportunitiesand challenges ahead. Drawing onrecent research conducted byDouglas-Westwood on the sector,he will also delve into the macrofactors and corresponding impacton energy demand, prices andsupply.

Forecasters have differentviews on oil supply for the future.However, most generally agree

future oil demand will have to bemet by production fromunconventional sources such asultra-deep water, oil sands, heavy

Douglas-Westwood expectslargest growth to be offshore

oil and shale oil. As such, aggregateexploration expenditure has beenincreasing at about a 10 per centannual increment since the 2008global financial crisis.

Some of the current growth isdue to delayed projects restarting;however, Mr. Westwood sees atrend towards increasing spend inthe long-term. He adds, It isexpected that more than US$600

billion wil l be spent by the globalExploration and Production (E&P)industry and the largest growth willwithout doubt be offshore.

Natural gas is steadily gainingtraction as the fuel of choice for

power generation, and is expectedto be increasingly used astransportat ion fuel in future.Forecasters expect demand to grow

by 50 per cent by 2030. In order to

access the considerable reserveslocated in remote offshore locations,giant floating LNG (FLNG) vesselsare being designed and buil t

against the backdrop of greattechnical challenges and highcosts.

Mr. Westwood expectsexpenditure on semi-submersiblerigs, drillships, jackups and FLNGvessels will rise strongly for the nextcouple of years. Outlook for theequipment & services sector,especially for subsectors such asdeepwater oi l and gas and the

associated subsea industry, will be bullish, as a result.

The Asia Pacific is emerging asa deepwater market, alongside theregions of East Africa, Eastern Indiaand the Eastern Mediterranean,

joining major deepwater plays in thegolden triangle of Brazil, Gulf of Mexico and West Africa.

With growing global focus ondeepwater and subsea, as well as

LNG, opportunities for the regionsengineering & constructioncompanies and yards look set togrow in the years ahead and it is

Forecasters have different views on oil supply for the future.However, most generally agree future oil demand will haveto be met by production from unconventional sources suchas ultra-deep water, oil sands, heavy oil and shale oil

News


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likely that the majori ty of the worldsfloating rigs, production systemsand subsea support vessels will be

bui lt here. The market is changingquickly, and Asian companies needto stay competitive, states Mr.Westwood.

Poised to beat previousrecords, OSEA2012, with i tsexhibition space fully allocatedsince March 2012, will occupy twolevels of exhibition space, or morethan 31,000 square metres, at theMarina Bay Sands. The exhibitionwill play host to a congregation of 1,500 international exhibitors from48 countries/regions.

The previous event attractedmore than 25,000 trade attendeesfrom over 60 countries/regions, andsaw visitors from some of the worldsmajor oil and gas players, includingthe Bahrain National Gas Company,

BP Exploration Operating Company,Brunei LNG, Brunei Shell Petroleum,Chevron, CNOOC, DirectorateGeneral of Oil & Gas Indonesia,ExxonMobil Asia Pacific, HalliburtonFar East, Jurong Shipyard, KuwaitGulf Oil Company, Keppel Energy,Maersk Drilling, Malaysia Marine &Heavy Engineering, Myanmar Offshore, Petronas Carigali,Sembcorp Marine, Shell EasternPetroleum, Vietnam National Oil &Gas Group, and many more.

OSEA2012 InternationalConference, the regions foremost

platform where leaders and expertsin the Oil & Gas industrycongregate, wil l be heldconcurrently with the Exhibition to

present delegates with an excit ingline up of industry and businessrenowned speakers to share their expertise on the latest technology

and business trends & challengessurrounding the oil and gasindustry.

Refreshed for 2012, theOSEA2012 International Conferenceis overall structured into four tracksthat delve into important topics suchas the global outlook and its impacton Asia, commercial trends andchallenges, revolutionarytechnological innovations inOffshore Development &Production, Offshore SafetyManagement, Natural Gas & LNGDevelopments, as well as a TechnicalProgramme focusing on facilitiesengineering, enhancing productionoperations, and energy managementand sustainability. The Conferencewill also impart to participants

practical advice and tips to resolvecurrent offshore production, HSEand technical challenges.

News

Baker Hughes has introduced a new tubingretrievable, subsurface safety valve for ul tra deep-set , deepwater and high

pressure-high tempera ture applications.The new REACH subsurface safety

valves can be set as deep as 20,000 ft (6096m) and ensure fail-safe-closed operation

using reliable, field-proven, heavy sprungclosure technology. The new valve offersa single control line operating system for deepwater HPHT wells. It can be controlledfrom the surface, allowing personnel tomonitor its operation remotely. REACHvalves are tested in accordance with theBureau of Safety and EnvironmentalEnforcement (BSEE) adoption of theAmerican Petroleum Institutes industrystandards that ensure the use of the best

available and safest technologies while operating inthe Outer Continental Shelf (API 14A 11th Ed).

The valves design isolates wellbore tubing pressure from the hydraulic operating control system,

Baker Hughes introduces REACH seriessubsurface safety valve heavy-sprung closure systemwhich enables the opening of the valve atmuch lower operating pressure than

previous heavy-sprung valves . A nitrogencharge system is not necessary. Thisfeature makes the REACH valve ideal for applications with opening pressurelimitations, such as subsea completions,

high-pressure wells and fields where therig site and other control facilities may havesupply pressure capability limitations.

The REACH valve incorporates proven features from other Baker Hughessubsurface safety valve designs, such as:flapper closure technology with very highgas flow rate closures; RBT housingthread technology; dynamic sealtechnology and debris exclusiongeometries. These design features have

been proven in more than 20,000 global installationsof Baker Hughes safety valves. The REACH valvecould be used globally, including applications in theGulf of Mexico, West Africa and Malaysia.

The newREACH

subsurface safety

valves can be setas deep as 20,000

ft (6096 m) andensure fail-safe-closed operation

using reliable,field-proven,heavy sprung

closuretechnology


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The Institute of Directors hasconferred its DistinguishedFellowship for 2012 to Mr. Sudhir Vasudeva, ONGC CMD andChairman, ONGC Group of Companies. The coveted Fellowship

was conferred on Mr. Vasudeva for his admirable steering of the ONGCBoard and Boards of other ONGCGroup of Companies with the highest

ONGC CMD Sudhir Vasudeva receives the IOD Distinguished Fellowship from Union Minister Dr. M Veerappa Moily

Sudhir Vasudeva conferred IOD fellowship

standards of Corporate Governance.The Fellowship was awarded

by the then Union Minister of Corporate Affairs and Power Dr. MVeerappa Moily at Delhi on 17thAugust 2012. Former Chief Justice

of India Justice P N Bhagwati, wasalso present on the occasion.

Accepting the Fellowship, Mr.Vasudeva said, "I humbly receive

this honour as a recognit ion of ONGC's unique value system, of its

people and of its leadership". Withthis Fellowship, Mr. Vasudeva joinsa distinguished club of eminent

pe rs on al it ie s li ke Dr. APJ Ab du lKalam, Mr Kapil Sibal, Mr. TKA Nair,Mr. Pankaj Munjal, Ms. Kiran Bediand Mr. N Vittal.

Mr. Sudhir Vasudeva, a GoldMedalist Chemical Engineer withAdvanced Diploma in Management,is a firm believer in transparency andethical business practices. Mr.Vasudeva is the President of GlobalCompact Network, India. He alsohappens to be the first businessleader from Indian PSUs to becomea Member of the Board of the GlobalCompact, the United Nation'shighest- level advisory bodyinvolving business, civil society,

labour and employers organizations.Under the able stewardship of Mr Vasudeva, ONGC has not only

become the highest-ev er Pr ofi t-making and highest-ever Dividend

paying company of the country, italso often retains the Numero Uno

pos it ion in the Market in terms of Market Capitalization.

A distinguished technocrat, Mr.Vasudeva has earlier received

coveted CEPM-PMA Fellowship onProject Management for his many

path-breaking initiat ives in complexoffshore project management.

With this fellowship, Mr. Sudhir Vasudeva joins a distinguished

club of eminent personalities like Dr. APJ Abdul Kalam,Mr Kapil Sibal, Mr. TKA Nair, Mr. Pankaj Munjal,Ms. Kiran Bedi and Mr. N Vittal.

Aker Solutions has won a contract from ShanghaiZhenhua Heavy Industries Co. Ltd (ZPMC) to supplya complete drilling equipment package for a new jack-up drilling rig, being built by the Chinese yard. The

new rig is of the 2000E jack-up design."We are pleased to see Aker Solutions' competitive

position in the jack-up market, which remains active,"says Thor Arne Hverstad, head of dri l l ing

Aker Solutions wins jack-up drilling equipment contracttechnologies in Aker Solutions. The equipment will bedelivered in 2013.

Aker Solutions will provide drilling equipment fromits production units in Kristiansand and Asker in

Norway as well as Houston, US and Erkelenz in Germany.Aker Solutions offers complete drilling equipment

packages, including project management, engineering, procurement and commissioning.


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Sercel has sold a UNITE cable-free seismic acquisitionsystem to PanAmerican Geophysical, a full-servicegeophysical seismic acquisition company specializing

in land and well seismic services throughout theAmericas. The new order relates to the sale of a RAU-3 unit, the three-channel version of Sercels provenUNITE system.

RAU-3 UNITE units offer enhanced flexibility andcan easily be configured to record either 1-C or 3-Canalog data, while offering the main advantages of theUNITE system. The systems unique high-speed, long-range wireless capability improves in-field qualitycontrol of data acquisition by providing wirelessharvesting and real-time data transfer.

This UNITE sale also represents the f irst purchase of Sercel equipment by PanAmerican, whoseoperating companies are leading providers in their local markets of Colombia, Canada and Argentina. The

PanAmerican Geophysical selectsSercel UNITE cable-free system

UNITE system is scheduled to be deployed on aseismic survey in the Amazon in late October.

Mark Farine, CEO, PanAmerican Geophysical, said:

We are very pleased to place our order with Sercel for our first UNITE acquisition system. The ability for real-time quality control, the radio harvesting and theseamless integration into the Sercel 428XL were keydrivers in our decision to purchase the UNITE System.The security of the real-time quality control coupledwith the automation afforded with radio harvestingwill provide operational efficiency to PanAmerican.

Pascal Rouiller, CEO, Sercel, said: We aredelighted that Sercels state-of-the-art UNITE systemhas been selected by PanAmerican to equip their new

crew and we thank them for their support. UNITE offersan unprecedented level of operational flexibility andquality control, which will ensure PanAmericanachieves success even in difficult terrain.

News

International

oil servicescompany Aker Solutions hasexpanded itss u b s e a

busines s byestablishing as u b s e a

lifecycle service base in Labuan,Malaysia. The objective is tosupport all installed and future

shallow and deepwater projectswithin the Asia Pacific region.

The new service base, whichis located in Labuan FederalTerritory in Eastern Malaysia, will

provide s t rategic and effectivesupport services for Aker Solutions' onshore and offshore oiland gas customers.

An opening ceremony was heldtoday at the new si te and wasofficiated by Dave Hutchinson, headof Aker Solutions' subsea business

Aker Solutions opens Malaysian subsea service basein Asia Pacific.

"Our new subsea l ifecycleservice base shows Aker Solutions'commitment to serving our customers who require our serviceslocally as well as being well placedto capture further potential clients.Malaysia represents an importantmarket for our subsea business,"says Dave Hutchinson.

"We have buil t a strongfootprint in the Asia Pacific region

over the pas t decade wi th theestablishment of service bases inPerth in Austral ia, Kakinada inIndia, Songkhla in Thailand andnow Labuan. We are now well

plac ed to mee t the nee ds of our customers with the opening of thisnew base in Malays ia ," saysHutchinson.

Labuan Island is located off thenorthwest coast of Borneo, north of Brunei Bay and faces the SouthChina Sea. Labuan was identified as

a strategic location due to i ts

proximity to the current and plannedEast Malaysian developmentlocations. The site is accessible toother South East Asian locationsincluding Vietnam, Philippines,Indonesia and China. Labuan hasexisting oilfield infrastructure and a

port which supports local operatorswithin the facility.

The facility covers 13 680sq/mwith a workshop of 1 296sq/m that

has a 75 tonne overhead crane and pressure test ing capabi li ties of usto 15 000 psi. A team of 18 staff arecurrently employed at the Labuan

base. Aker Solutions also operatesa high-tech subsea manufacturingcentre in Port Klang, Malaysia. Thisfacility can manufacture a completesubsea production system in onelocation. Aker Solutions is currentlyinvesting to double themanufacturing capacity at the PortKlang facility.


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GE Oil & Gas has announced it hasreceived a 102 million (US$165 m)contract to supply productionequipment to Chevrons Lianzi

project, si tuated offshore betweenAngola and the Republic of Congo.

GE will provide a range of technologies to enable EPC(engineering, procurement andconstruction) project execution.

This includes the supply of seventrees, nine subsea control modules(SCMs), topside and subseacontrols distribution equipment andvertical connection systems.

Completion of the first tree isscheduled to take place in the fourthquarter of 2013, with a cross-regional team from GE Oil & GasAberdeen, Nailsea and Sandvika(Norway) sites collaborating on

project delivery.Rod Christie, vice president of

Subsea Systems, said, West Africais one of the worlds keyhydrocarbon basins, and we areexcited to be working with Chevron

GE wins a prized Chevron contractto supply subsea technology

Overseas Congo Limited as operator of the Lianzi project, the first cross-

border development in the region.This contract win is not just anexpansion of our relationship withChevron. It represents our productcompeti t iveness in the globalmarketplace, ongoing commitmentto the region and continued demandfor our state-of-the-art technology

solutions.The 1.2 billion (US$2.0 billion)

Lianzi development will include asubsea production system and a 27-mile (43 km) electrically heatedflowline, the first of its kind at thiswater depth. The f lowline wil ltransport oil from the field to theBBLT (Benguela-Belize, Lobito-Tomboco) platform.

GE works on things that matter.The best people and the besttechnologies taking on the toughestchallenges. Finding solutions inenergy, health and home,transportat ion and finance.Building, powering, moving and

curing the world. Not just imagining.Doing. GE works.

GE Oil & Gas is a world leader in advanced technology equipmentand services for all segments of theoil and gas industry, from drillingand production, LNG, pipelines andstorage to industr ial power generation, refining and

petrochemicals. GE Oil & Gas also

provides pipeline integri tysolutions, including inspection anddata management, and designs andmanufactures wire-line and drillingmeasurement solutions for theoilfield services segment.

As part of its customer focusand commitment, GE Oil & Gasexploits technological innovationfrom other GE businesses, such asaviat ion and healthcare, tocontinuously improve oil and gasindustry performance and

productivity. GE Oi l & Gas employsmore than 35,000 people worldwideand operates in more than 100countries.

Leading specialist subsea services groupActeon has been nominated for an Oil

Council award in the Oilfield Services Business of theYear category. The awards celebrate internationalsuccesses in the oil and gas industry throughout 2012and are judged by a panel of 50 industry experts.

The award focuses on companies and executiveswho have pioneered new frontiers, pushed boundaries,inspired others and achieved growth in challengingmarkets. A panel of judges consider and subsequentlynominate companies based on a range of criteria. Thesecriteria include overall leadership as an industry

benchmark of excellence; financial and operational

performance; st rength of indust ry partnerships ; andstrength of market reputation, corporate governanceand public relations.

We are delighted to receive this nomination and

Acteon nominated for Oilfield Services Business of the Yearare encouraged to see subsea servicesrecognised as a distinct part of the

subsea market, said Acteon vice president PaulAlcock. Acteons aim is to define subsea services byoffering industry-leading services that are distinct from

but support the opera tions of vessel owner s an dconstruction companies.

Acteon companies provide mooring, foundation,riser, conductor, flowline and marine electronics productsand services supported by strong engineering and

project management capabilit ies. Subsea services aredefined as the provision of specialist equipment,services and personnel that can operate from any fit-

for-purpose vessel or platform. Acteons subseaservices offering is unique and addresses operationalrequirements that support oil and gas asset owners,construction and drilling companies, and vessel owners.


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Oil & Natural Gas Corporation(ONGC) and INPEX Corporation(INPEX), Japans largest oilcompany have entered into astrategic partnership for explorationof hydrocarbons in one of theacreages in KG basin. Bothcompanies have today inked a Farm-out Agreement at ONGCscorporate head-quarters in New

Delhi on November 05, 2012.INPEX has acquired a 26%

part icipating interest farmed-out byONGC in the exploration block KG-DWN-2004/6, located in the deepwaters of Krishna Godavari Basinin the Bay of Bengal. ONGCcontinues as Operator of the Block with a 34% participating interest inconsortium with existing partnersGAIL (India) Limited (10%), GujaratState Petroleum Corporation Limited(10%), Hindustan PetroleumCorporation Limited (10%) and OilIndia Limited (10%). RespectiveBoards of ONGC and INPEX

Japanese company INPEX joins ONGCs huntfor oil and gas in KG Basin deep water block

Corporation have already approvedthe proposal.

The block KG-DWN-2004/6,awarded to an ONGC-led consortiumunder the NELP-VI licensing round,is located some 300 km off theAndhra Pradesh coast and coversan area of more than 10,000 sq kmswith a water depth of approximately3,000 m. Operator ONGC hascompleted most of the phase-I

exploration programme in the block except drilling of one well which isto be taken up.

Close on the heels of ONGCsrecent tie-ups this year with globalmajors l ike US basedConocoPhillips, Chinas CNPC andColombias ECOPETROL SA, this isyet another successful effort in itsattempt to collaborate and expandits strategic interests.

News

ONGC Videsh Limited (OVL) has signed definitiveagreements for the acquisition of Hess Corporations

2.7213% participating interest in the Azeri, Chirag andthe Deep Water Portion of Guneshli Fields in theAzerbaijan sector of the Caspian Sea (ACG) and2.36% interest in the Baku-Tbilisi-Ceyhan Pipeline(BTC), for US$ 1 Billion. The acquisition is subjectto relevant government and regulatory approvals andis expected to close by the first quarter of 2013.

ACG, which is located in the south Caspian Seaabout 95 km off the coast of Azerbaijan, is the largestoil and gas field complex in Azerbaijan and is one of the largest producing oil fields in the world. BP

operates ACG and is partnered by State Oil Companyof Azerbaijan Republic (SOCAR), Chevron, Statoil,ExxonMobil, Inpex, Turkish NOC - TPAO and Itochu.Average daily production from the field is around

ONGC Videshs recent overseas acquisition

ONGCs Executive Director Mr. Anand Sahu (left) exchange strategic partnership agreementdocuments with his INPEX, Japan counterpart (right) in the presence of Mr. Sudhir Vasudeva,CMD, ONGC and Chairman ONGC Group of Companies (centre), Mr. P.K. Borthakur, Director Offhore, ONGC, Mr. K. Sataynarayan, ONGC and INPEX officials are also seen

700,000 bopd of crude oil.The 1,768-km BTC Pipeline is one of the main

export routes for Caspian crude oil production with acapacity of around 1.0 million bopd to the Ceyhanterminal in the Mediterranean Sea in south east Turkey.

The acquisition would mark ONGC Videshs entryinto oil rich Azerbaijan and is consistent with its statedstrategic objective of adding high quality internationalassets to its existing E&P portfolio. The acquisitionwould bring 9% additional proved reserves to ONGCVidesh Limited portfolio and also bears significantstrategic importance to India in terms of contributingtowards Indias energy security. ONGC has recently

formulated its Perspective Plan 2030 envisaging thatthe oil and gas production of ONGC Videsh Limitedwould increase from the current level of 8.75 MMTOEto 20 MMTOE by FY18 and 60 MMTOE by FY30.


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Schlumberger has launchedReSOLVE instrumented wirelineintervention service, a modular system of intel l igent wirel ine-deployed services that providesreal-time measurement and controlin a small footprint.

The downhole intelligence of ReSOLVE services enables our customers to see interventionoperations at a level of detail not

previously possible, said CatherineMacGregor, president,Schlumberger Wireline. With thisunique technology, more complexoperations can be performed, such

New Intelligent Wireline Intervention Services

The ReSOLVE milling tool is part of the new family of intelligent wireline intervention services.

ReSOLVE services deliver monitoring and control of wireline workover operations to reduce intervention costs

as selective sleeve shifting or safetyvalve performance evaluation, withunprecedented success.

This modular system of servicescomprises a high-force linear actuator, a universal shifting tool(UST), a hydraulic setting tool and amilling tool. The high-force linear actuator shifts downhole valves,

pulls ret riev able plugs, an d can pe rform fi sh in g operat ions wh il emonitoring force and displacementin real time. The UST is a field-configurable, high-expansionshifting tool that can selectively shiftdevices, even below restrictions.

The plug and packer settingtool operates hydraulically,eliminating the need for explosives.The milling tool removes scale andother obstructions from wellboretubulars while automaticallycontroll ing weight-on-bit tomaximize rate of penetration. In a

North Sea wel l, ReSOLVE millingservice removed scale at a rate of 57ft per hour over thousands of feetof production tubing, eliminatingthe need for a full scale intervention.In the Middle East, the ReSOLVEUST was deployed to selectivelyshift 10 valves in a horizontalmultizone completion. Real-timeconfirmation of shifting eliminatedthe need for production logging toverify the valves had shifted.

News


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P K Borthakur has taken over as theDirector (Offshore) in the Board of the countrys most valuable publicenterprise Oil and Natural GasCorporation Limited (ONGC). Mr.Borthakur took over this importantBoard position of ONGC on October 30, 2012.

Mr. Borthakur steps in asDirector (Offshore) at a crucial

junct ure wh en ONG C has setambitious target in augmentingOffshore production, in the contextof the organizations PerspectivePlan 2030. Congratulating Mr.Borthakur for the elevation, CMD Mr.Sudhir Vasudeva said there could nothave been a better oilman for theassignment at this vital juncture.

P K Borthakur, like his pre dec es sor Su dh ir Vasud ev a, is pr ed om in an tl y br ou gh t up in the

professional nuances of offshore oilengineering. He commands a rich por tfo lio of experiences in diversefields of oil production chain. Before

being elevated to the Board of Indias flagship explorer ONGC, Mr.Borthakur effectively managedIndias biggest oil producing assetMumbai High and biggest gas assetBassein & Satellite.

Notable among his other

achievements are commissioning of Mumbai High North Complex,Deployment of Rigs on vintage

P K Borthakur is Director (Offshore), ONGC

Redevelopment of ONGC brownfields would be a focusarea, said P K Borthakur, after assuming office of Director

(Offshore) on the Board of ONGC

platforms to dril l wel ls in var iousformations, and Fast-tracking of Marginal Field Development. Hismanagerial skills helped ONGCleverage benefits in operational de-

bottlenecking in Uran process Plantand induction of cutt ing-edgetechnologies in Well Services.

A Mechanical Engineer fromGuwahati University, Mr. Borthakur has been groomed in IIM Lucknowand ISB Hyderabad. The rich

industry-academia interface of thisthorough gentleman facilitated hisconferment with Society of

Petroleum Engineers Distinguished

Member in 2011.Speaking after assuming office,Mr. Borthakur said that his top most

priori ties would include fast-track development of the discoveredassets including cluster development of marginal fields.Redevelopment of the brownfieldsl ike Mumbai High, Heera andBassein, which have beencontributing over 80 per cent of

ONGCs current domestic production, would be a focus area,said the soft-spoken Director.

P.K.Borthakur,Director(Offshore),ONGC

News

GE launches gas engines reUp remanufactured parts programGE has launched its reUp parts remanufacturing

program for its installed fleet of Waukesha gasengines. With GEs Waukesha units supportinggas compression and power generation projectsaround the world, the new reUp service program is

aimed at maximizing the performance and the long-term availability of the engines to help customers meettheir critical production goals.

Our new reUp program bolsters our ability to

meet the performance and availability needs of our customers, said Bob Hutchinson, globalservices leader for GEs Waukesha gas engines

division. We are not just offering reconditioned parts. Our reUp part s wi ll de li ver the sameor a

betterlevel of performance compared to the original parts. Not only will we remanufacture components totheir original specificat ions, but we also wil lincorporate the latest engineering updates.


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Mrinal Vohra *, Chief Executive Officer, GE Oil & Gas - India,Bangladesh and Sri Lanka talks to Chief Editor DEW Journal

GE is a key contributor and partnerto the oil and gas industry worldover

GE Oil & Gas is a world leader inadvanced technology equipment andservices for all segments of the oil andgas industry, from drilling and

production, LNG, pipelines and storageto industrial power generation, refiningand petrochemicals. GE is well

positioned as a key contributor and partner in exploring and developing oiland gas says Mrinal Vohra, Chief Executive Officer, GE Oil & Gas -India, Bangladesh and Sri Lanka.While emphasising on GEscommitment of supporting customer across the entire oil and gas value

chain, he points out the three watchwords Integrity, Safety andQuality on which all GE operationsstand. Excerpts from the interview:

As the Chief Executive Officer GE Oil & GasIndia, Bangladesh and Sri Lanka you havebeen in the saddle for around a year. Duringthis period how innovatively has your imagination at work synchronized andfurthered GE philosophy of imagination at

work in all areas of operations in India?It has been a remarkable one year, coming into GE wascomfortable from a variety of operational angles andfrom the adjustment required for working in a largemultinational corporate setup having been in similar organizations throughout my career. The breadth and

Mrinal Vohra

* Mr. Mrinal Vohra is Chief Executive Officer, GE Oil & Gas - India, Bangladesh and Sri Lanka. This business segment includes Turbomachinery,Drilling & Surface, Subsea & Global Services businesses. Mr. Vohra has a broad expertise and experience of over two decades with various O&Gdisciplines in the reservoir evaluation, well construction, integrated project management, product sales and services models for conventional andunconventional energy industries. Prior to joining GE in September 2011, Mr. Vohra was the Region Commercial and Business Development headfor the Asia Pacific Region, Weatherford International Limited.

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Our broadexperience and deep

domain knowledge of various industries areapplied in the oil &

gas industry to offer industrys verycomprehensive products and

technologies thatcontinually break new

ground in terms of operationalefficiency,

productivity,reliability, safety and

environmental performance

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depth of the GE product portfolio and the expanse of the GEs capabilities is something I am still learningabout. My past experience is helpful in establishingfootprint and growing our presence in this region for multiple new business platforms which speeds up our capability and playground locally.

Can you elaborate on the three watchwords

Integrity, Safety and Quality on whichall GE operations stands?At GE, our corporate culture is one of doing it rightand always striving to do it better, not only by applying

the best processes and technologies, but by conducting our operations andrelationships with the utmost honestyand integri ty no matter whatchallenges may arise.

We mitigate risk and consider theimpacts on people, communities andnatural environments in everything wedo. environment, health and safety(EHS) is paramount every day, from thelayout of our workshops, all the waythrough to the ecomagination program

a global GE init iative dedicated todelivering products that are better for

both business and the environment .Every GE Oil & Gas innovation is

driven by a specific and practicalindustry requirement. We carefullyevolve product designs with proventechnologies, r igorous test ing andqualification processes. Our objectiveis to continually deliver measurableincreases in efficiency, reliability,availability and performance.

On your priorities and long termthrust areas which are thecurrent ones being pursued

across the oil & gas value chain?GE Oil & Gas is committed to supporting customersacross the entire oil and gas value chain. GE Oil & Gastoday fosters cross-poll ination of best- in-classtechnologies from its sister business units like theusage of composites used in GE Aviation to developthe next generation deep water risers and the usage of scanning techniques from GE Healthcare to develop a

highly reliable UltraScan Duo. Our broad experienceand deep domain knowledge of various industries areapplied in the oil & gas Industry to offer Industrysvery comprehensive products and technologies that

continually break new ground in termsof operational efficiency, productivity,reliability, safety and environmental

performance. Today we take GEsSafety, Integrity and Quality culture tosegments such as Deep-water andSurface Exploration & Production

where our upstream portfolio featuresstructured tree configurations withintegrated controls for both shallow &deep water, manifolds, risers & subsea

Our template manifolds are used to commingle the flow from subsea wells,drilled through a common template structure with following features: Accommodates close spacing of subsea wells Eliminates need for well jumpers Suited for applications with full overtrawlability requirements Accommodates a wide variety of configuration requirements and

design options

Range of foundation system solutions to match diverse soil properties and seabed condit ions.

With a host of solutions across the E&P portfolio ranging from onshore to ultra-deepwaters, from conventional to unconventional

technologies, we would like to continually partner with local companies to innovateand develop technology solutions

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connectors, subsea compression and power distribution. We are key playersin the LNG space where we supply keyequipment to a large number of LNGfacilities worldwide.

Which are the major oil and gasprojects GE India is presentlyinvolved in? What new is on theanvil?India is fast-emerging as one major demand center for energy and isexpected to be the third largest energyconsumer globally by 2020. Thus thedownstream sector in India would showgreater growth and prominence. But toenable sustainable development of theoil & gas industry in India, theimmediate need is an actionable

operating philosophy and favorableframework of policies that can helpaccelerate the efforts for exploring anddeveloping oil and gas. We at GE areoptimist ic about future growth

perspective of the E&P sector and thatis where we believe that GE is very well

po si ti oned as a key cont ri bu to r an d partner. With a host of solutions acrossthe E&P portfolio ranging from onshoreto ultra-deep waters, from conventional

to unconventional energy source inshale or enhanced oil recovery, wewould like to continually partner withlocal companies to innovate anddevelop technology solutions. As arapidly industrializing economy therequirements in midstream anddownstream applications are set togrow at a healthy rate, and we are veryoptimist ic about our role in thesesectors.

As an engineer from the worldrenowned IIT Kanpur, your workexperience has spanned over

Our range of subsea t rees covers all applications from shallow water single well satellites, through to major deepwater developments.Products are suitable for low pressure reservoirs requiring artificialstimulation or lift through to high pressure high temperatureapplications. Our subsea manifolds and connection systems aredesigned to accommodate a wide range of configuration needs andservice requirements, while providing a high degree of versatility for

pipelay vessel interfaces and installation scenarios.

We operate to the highest EHS standards, employing rigoroustest, audit and review procedures in everything we do minimizingrisk at all stages, main features are : Our tree systems are designed from standard building block

components to meet the exacting requirements of developments inall water depths, thus maximising efficiency

Our full portfolio of tree systems delivers enhanced performance -configurations include simple diver assist shallow water mudlinetrees (TOM) up to drill-through and deepwater guidelinelesshorizontal trees (HT) and vertical trees

Products are suitable for low pressure reservoirs requiring artificialstimulation or lift through to high-pressure high-temperatureapplications to meet your field development needs

Our designs accommodate reservoir shut-in conditions of 350Fand 15,000 psi and, in the other extreme, provide facilities for electrical or hydraulic submersible pumping systems (ESP/HSP),or artificial lift by gas or water

Our trees are designed to accommodate our full range of choke products, which can be ful ly configured to opt imize production,water or gas injection (lift), or chemical injection services.

Subsea Systems has been one of GE Oil & Gass core expertise. Withover 7,000 subsea systems installed worldwide, our designs continue to

meet the most extreme challenges of this increasingly important sector

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two decades in the oil and gas industryhandling internationally acclaimedassignments. Would you like to shed somelight on your professional achievements andinternational experience?

IIT Kanpur was a place for nurturing curiosity andthought leadership. Even before I graduated therewere multiple offers including roles in executivemanagement, engineering and projects. As luck wouldhave it, ones first job they say is something whichdefines your career, and as it happened, I thought of looking into the oil industry and since then its beena fast journey across the globe and in roles whichhave given me hands on experience in mult iple

capacities and functions. Weve livedin close to a dozen countries andoperated across another thirty, andthis has led to interacting andoperating in a cross cultural settingspanning mul t ip le opera t ionalregimes. What has been satisfying hasalways been getting the job done, andsucceeding in t remendouslychallenging situations. It has never

been easy, but looking back it has beena greatly varied experience and thatssomething unique. You have had a richexposure to var ious execut ivedevelopment programs inc ludingthose a t Thunderbi rd Execut iveManagement program in Phoenix, USAand at GEs Global Learning Center atCrotonvil le, NY. What areas of expert ise were you groomed over there and how are you ploughing inyour rich experience and trainingsskills in your present responsibility?Even before getting to the course,there was something l ike 50 case

s tudies to d issec t and have someanswers ready. Being in the companyof some of the finest speakers andglobal operational executives, thefocus was on ideas and concepts,there were great discussions which

comprised aspects of organizational behavior,operating in globalized cross cultural set t ings,f inancial leveraging and corporate funding toeveryday operational decision making and investor relationships. GEs programs at Crotonville similarly

are exhaustive with focus on variety of differentaspects including leadership skills, team functioning,executive stamina, etc. Training is a great motivator and one learns to fish as opposed to being given afish. I am firm believer in the value of investment intraining. People who go to a class together usuallyend up being more cooperative in work settings. GEwas one of the earliest organizations to commit toorganizational training and these programs have a

reputation for generating some of the best leaders globally.

Can you update us on GEs provensolutions for subsea systems usedin the oil and gas industry?

The Subsea Distribution Units receives electrical power andcommunications, fiber optic communications and hydraulic andchemical services from the UTA and distributes to multiple users suchas trees, manifolds, pumping and boosting stations and infield tie ins.

Subsea Distribution Units (SDU) remove utility distribution fromthe UTA, reducing the UTA size and simplifying installation. As SDUsare more easily recovered than UTAs reconfiguration or upgradesmay be easily accommodated without disturbing the umbilical. Flying

Leads between the UTA and SDU can perform the same function aslogic plates, allowing simple system reconfiguration. SDUs may bedesigned to land on the same foundation structure as the UTA or onan independent foundation. They are typically designed to beindependently recovered from their foundations.

Face to Face

On the seabed, our innovations includewellheads widely used in the industry andthe pioneering BlueC subsea compressor


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Subsea Systems has been one of GEOil & Gass core expertise. With over 7 ,000 subsea sys tems ins ta l ledworldwide, our designs continue tomeet the most extreme challenges of this increasingly important sector 10,000-ft water depths, with pressureand temperature capabilities of 15 ksiand 250F. GE technologies enablelonger offsets and deeper ins ta l la t ions , whi le ensur ing h ighreliability, safety and performance. Onthe seabed, our innovations includewellheads widely used in the industryand the pioneering BlueC subseacompressor. We also adapt proventechnologies with design features thatreduce weight and footpr in t for increased safety and performance ontopside structures. Engineering design, advancedmaterials, installation processes, controls, lifecyclemaintenance and system expandability are all criticalto success and key advantages of our comprehensivecapabilities.

Natural gas is dramaticallychanging and GE as a companyis committed to its responsibledevelopment. Can you let usknow how this mission, of theparent company, is beingtranslated in India and theregions you oversee?Globally, advancements in upstreamtechnology for unconventional gas ledto not only a surge in the production

of gas but also made it environmentallyacceptable and commercially profitable.With technology as a core of our

business, we continually enhanceexisting designs and adapt our proventechnologies to new andunconventional applications as theface of the industry changes. Today,in India this technology know-how iscombined with an extremelycomprehensive network of

manufacturing, service facilities andthrough various strategic partnerships.Indias current gas production isaround 40 BCM (billion cubic meters)

HIPPS (High Integrity Pressure Protection System) Manifolds areused to facilitate high integrity subsea valves and control systemequipment needed to protect oil and gas production systems fromexcessive pressure levels. Its main features are: Compact and lightweight solutions Integrated control systems Enables reduced pressure ratings on pipelines and host processing

facilities

per year on an estimated reserves base of around 1,500BCM. This presents great opportunity for companieslike GE to contribute toward the sustainable growth of the gas industry in India and also and contribute tolocal economies and skills development in the country.

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Since only one out of the eighteen subsea blocks have been developed in India, our goal is to st rengthen everylink of the gas value chain; continually break newground for equipment performance, environmentalsafety and reliable energy supply.

Face to Face

GEs unconventional resources solutions aremade up of over 40 technologies from across

the GE portfolio including: submersible andsurface pumps, pressure control systems,compressors, drilling measurement tools,meters, pipeline solutions, sensors, gasengines for onsite power generation, motors,valves and water filtration technologies.These solutions are addressing fundamental

industry challenges, helping customers toimprove operational performance, reducetheir environmental footprint, increaseresource recovery, and drive demand for natural gas ultimately helping the industrymaintain a social license to operate

GE produces nearly 40technologies for the shaleresource sector. Which are theseand briefly how do these help inshale gas exploration andproduction across the globe?As a proven solutions provider to theindustry, GE is committed to theadvancement of natural gas as anabundant, rel iable and cleaner-

burning source of energy with the poten tial to hel p mee t our worldsgrowing energy needs for decades tocome. GEs unconventional resourcessolutions are made up of over 40technologies f rom across the GE

port fo lio including: submersible andsurface pumps, pressure controlsys tems, compressors , dr i l l ingmeasurement tools, meters, pipelinesolutions, sensors, gas engines for onsite power generation, motors,va lves and water f i l t ra t iontechnologies. These solutions areaddress ing fundamenta l indus t ry

challenges, helping customers to improve operational performance, reduce thei r envi ronmenta l footpr in t,increase resource recovery, and drive demand for natural gas ultimately helping the industry maintaina social license to operate. dewjournal.com

Baker Hugheshas announced

the launch of aservice that enables operators todesign high-performing hydraulicfracturing fluids using producedand flowback water. The H2prOwater management serviceintegrates technical expertise withchemical and mobile mechanicaltreatment technologies to constructwater that maximizes production,minimizes reservoir damage, and

reduces fresh water sourcing,storage and transportation costs.

Because water from everyreservoir is different, selecting the

Baker Hughes Surface Water Management Servicemost appropriate treatment requiresa full understanding of the waters

chemistry. The H2prO serviceincludes extensive pre-treatmentanalysis in which a team of scientistsand engineers with expertise in

production chemistry, pressure pumping, and water treatmentdetermines the constituents in thewater that must be treatedand byhow muchin order to meet

production requirements.Based on this analysis and the

operators operational requirements,application engineers choose theappropriate treatment from theextensive H2prO service portfolio.

The most comprehensive in theindustry, this portfolio includes

options to address all major producedand flowback water contaminants,including total dissolved solids,heavy metals, total suspendedsolids, hydrogen sulfide, and other organic compounds. Post-treatmentanalysis verifies that the treatment

prog ram has met or exce ededspecifications. Treating water at thewellsite enables operators to reducethe cost of sourcing, transporting,

and storing fresh water as well astransport ing, treat ing, anddisposing of wastewater by asmuch as 90 percent.


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T he CX-15 buoyant tower designed by Horton ShallowWater Development (SWD) has

been successfully set as planned for BPZ Energy off the coast of Peru.The Buoyant Tower is locatedapproximately one mile from theexisting CX-11 platform in a water depth of 175 feet (53 m) in theCorvina field in offshore block Z-1.Both platforms will beinterconnected via a series of subsea pipelines.

The design of the platformfeatures a number of specific areasthat greatly reduced cost and

Worlds first buoyant tower

successfully set upsimplified setting. The transportvessel; the Osprey, a submersibleheavy l if t ship, t ransported thetopside and hull tower componentsof the platform to the field site andalso launched the tower and wasused for mating the decks to thetower. The Hull was initially floatedoff in a horizontal orientation andthen upended with a controlled floodof the lower hull cavities. This

process was comple te in a singleday. Additional ballast was thenadded to the hull structure before itwas mated with the topside

positioned on a cantilever structure,

also on the Osprey.All operations went to plan and

the combined topside and hull waswet towed to the f inal locationwhere the last phase was to set thewhole structure into the seabedusing the integral suctionfoundation.

Kevin Chell , CEO of SWDstated We have reached an excitingmilestone with the successfullaunch, mating and setting of thenew buoyant tower platformshowing the design can deliver inreal terms and proving themethodology for a system that does

Hull Float off Osprey submerged to allow float of off hull structure

The CX-15 buoyant tower designed by Horton ShallowWater Development (SWD) has been successfully set intothe seabed using the integral suction foundation

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Hull upend Hull is taken through controlled upending to the desired vertical position

The Buoyant Tower concept draws on the proventechnology of the cellspar and the design providesmultiple benefits for fields where other concepts

would be problematic requiring high capital costs andexpensive crane barges for installation. The buoyant

tower can operate in water depths up to 800 feet(250m) and can be relocated allowing small marginal plays to be exploited in a cost effective manner. Thedesign allows for oil storage if needed, can eliminateseparate shallow water drilling units and provides a

high level of flexibility for the operator

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not need a heavy lift barge. Richard Spies, COO of BPZ

Energy, commented The use of theBuoyant Tower design has been akey driver in the cost effective andtimely expansion of thedevelopment of our Z-1 asset. Wehave been impressed with thedelivery team and how the whole

project has come together as pl anned.

Buoyant Tower DesignThe Buoyant Tower concept drawson the proven technology of the

cellspar and the design providesmultiple benefits for fields whereother concepts would be

problematic requiring high capitalcosts and expensive crane bargesfor installation. The buoyant tower can operate in water depths up to800 feet (250m) and can be relocatedallowing small marginal plays to beexploited in a cost effective manner.The design allows for oil storage if needed, can el iminate separateshallow water drilling units and

provides a high level of flexibilityfor the operator.

The benefi ts of the designwere recognized and adopted byBPZ Energy for their new CX-15

pla tform at the Corvina field. The platform is des igned for 12,200 barrels of oil per day (1940 m3/d),gas compression capacity of 12.8million standard cubic feet per day(0.36 million Sm3/d) and producedwater handl ing and in jec t ioncapacity of 3,500 barrels per day(557 m3/d). A total of 24 drill slotswill be available, some of which will

be used for gas and water reinjection wells.

Horton Shallow Water Developments (SWD) is a jointventure company between HortonWison Deepwater and GMC Inc.The company is actively promotingthe use of the Buoyant Tower technology in areas where the key

Topside mating Hull and topside are connected using the variable ballast system of the hull to pick-up the topside structure

We have reached an exciting milestone with the successfullaunch, mating and setting of the new buoyant tower platformshowing the design can deliver in real terms and proving the

methodology for a system that does not need a heavy lift barge- Kevin Chell, CEO, SWD

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benefi ts provide a compel l ingeconomic, schedule and operatingadvantages.

GMC is an industry leader ininnovative engineering, projectmanagement and instal lat ionsolutions for offshore oil & gasSURF, dri l l ing, and production

projec ts . For the CX-15 Buoyan tTower GMC also provided project

management services to BPZ for thefabrication and Installation phase.Established in 1991, GMC hasoffices in Houston, London and

CX-15 set on location Buoyant Tower at final location after successful suction foundation penetration.

Beijing and the company hasdeveloped strategic partnershipswith key customers & partners.GMC - Experience where it counts,innovation where it matters.

Horton Wison Deepwater isone of the Worlds leading offshoretechnology developmentcompanies. Horton develops the

products tha t oi l and gas

companies need across the globein their search for hydrocarbons.Created by Ed Horton, one of theindustrys most successful

innovators , the companycontinues in the path set out by itsfounder three decades ago whenthe tension leg platform (TLP) wasfirst patented. Since then, Hortonsteam has developed the Spar concept and steered it through itsevolution from the original ClassicSpar through the Truss Spar totodays Cellspar. Seventeen Horton

floating production and drillinguni ts have been bui l t and areworking today in the deep oceansworldwide.

Horton Shallow Water Developments (SWD) is a joint venturecompany between Horton Wison Deepwater and GMC Inc. The

company is actively promoting the use of the Buoyant Tower technology in areas where the key benefits provide a compellingeconomic, schedule and operating advantages

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Sercel has launched the SeaRay

428, the latest generation of itsSeaRay system, designed to deliver competi t ive, redeployable 4-Cseabed seismic acquisition.

Sercel launches the next-generation

SeaRay 428 seabed acquisition system

With nine systems in operationworldwide, the current SeaRaysystem has already become theindustrys system of choice,delivering unrivalled operational

The SeaRay 428 has three new modular functionalities which extend the SeaRaysystems capabilities. First, while retaining theSeaRays key advantage of power supplythrough the line, the 428 features an innovativein-sea module, the SBLU (Seabed Line Unit),which offers an unequalled 37-km cable length

capability and a twofold increase in line datarate to 16Mb/s. Second, coupled with theaddition of a long-range optical extender, theSeaRay 428 provides even greater possibilitiesfor line snaking or long-offset recording. Third,the SeaRay 428 can now also integrateunmanned satellite recorders, which offers

greater flexibility during deployment and roll-out while ensuring real-time quality control of all system parameters and seismic data

Sercel has launched the SeaRay 428, the latest generation of its SeaRay system, designedto deliver competitive, redeployable 4-C seabed seismic acquisition. The SeaRays newfunctionalities are fully compatible with our existing seabed equipment which means thatthe many customers who have placed their trust in the Sercel SeaRay over recent yearswill be able to take advantage of these upgrades to achieve enhanced seabed acquisition

performance .

Inputs from Benedicte Sebillot, Sercel, France and Kelly Jones, Sercel, US

benefi ts and high-quali ty broadband seismic data. TheSeaRay 428 offers enhanced

prod uc ti vi ty and da ta qual it y fo r Ocean Bottom Cable surveys andaddresses growing industrydemands for ever larger

channel counts and greater layoutflexibility.The SeaRay 428 has three new

modular functionali t ies whichextend the SeaRay systemscapabilities. First, while retainingthe SeaRays key advantage of

power supply through the line, the428 features an innovative in-seamodule, the SBLU (Seabed LineUnit), which offers an unequalled

37-km cable length capability and atwofold increase in line data rate to16Mb/s. Second, coupled with theaddition of a long-range opticalextender, the SeaRay 428 provideseven greater possibilities for linesnaking or long-offset recording.Third, the SeaRay 428 can now alsointegrate unmanned satel l i terecorders, which offers greater flexibility during deployment and

roll-out while ensuring real-timequali ty control of al l system

parameters and seismic data.The CEO, Sercel, says: I am

Cover Feature


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Sercel is the worlds leadingdesigner and manufacturer of

innovative seismic equipment andreservoir monitoring instruments


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Schlumberger has announced theaddition of the Litho Scanner*high-definit ion spectroscopyservice to the Scanner Family* rock

and fluid characterization services.The Litho Scanner service

measures an enhanced suite of elements, including carbon,magnesium and aluminum, in realt ime to help provide a detai leddescription of complex reservoirs,including unconventional, shalysand and carbonate. In addition, thislatest wireline service provides astand-alone quanti tat ive

determination of total organiccarbon (TOC), cri t ical for theevaluation of shale reservoirs.

Customers need to understand

New spectroscopy service

Litho Scanner high-definition spectroscopy service revolutionizes gamma ray spectroscopy to enable detailed description of complex reservoirs.

Litho Scannerhigh-definitionspectroscopyservice deliversquantitative

mineralogy incomplexlithologies

formation composit ion andmineralogy, part icularly inunconventional reservoirs to beable to make timely completion

decisions, said CatherineMacGregor, president,Schlumberger Wireline. LithoScanner provides critical formationand reservoir data at the well site

previously avai lable only after extensive, t ime consuming andcostly laboratory analyses.

The Litho Scanner service has been run successfully on more than80 wells in all the major shale plays

in North America, in South Americaand in conventional reservoirs. InCanada, the Litho Scanner servicewas successfully used to interpret

the mineralogy in a lithologicallycomplex shale gas reservoir comprising multiple clay types inaddition to quartz, feldspar, calcite,

dolomite, ankerite and pyrite. Thedetermination of total organiccarbon enabled both an accuratequantification of total porosity anda quanti tat ive assessment of reservoir quality.

In the Barnett shale, LithoScanner data in conjunction withsCore* lithofacies classification wasused to identify the potentially most

product ive lay ers of an organ ic

mudstone reservoir. This technologychoice enabled an optimizedcompletion design to maximizehydrocarbon recovery. dewjournal.com

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M-I SWACO, a Schlumberger

company, has announced therelease of the RHADIANT ultra-high temperature non-aqueousdrilling fluid system. This systemeliminates drilling fluid productdegradation, prevents wellborecontrol issues such as barite sagand provides a thin filter cake for enhanced logging conditions.

With wellbores approachingthe 500 degF (260 degC) threshold,

there is a need for a drilling fluidthat can remain stable and deliver consistent performance throughoutthe processes of well construction

New ultra-high temperature

non-aqueous drilling fluid

RHADIANTdrilling fluid

systemformulated tomaintain stablerheologies andthin filter cake

to ensurequality

reservoir characterization

and openhole logging, said Joe

Bacho, president, M-I SWACO.The RHADIANT drilling fluidsystem has a field-proven record of

providing excel lent loggingcondit ions to enable efficientoperations and quality reservoir characterization.

The RHADIANT drilling fluidsystem is specially formulated tomaintain a stable rheological profilewith little maintenance required.

Unlike conventional non-aqueousdri l l ing f luids, the RHADIANTdril l ing f luid system maintainsextreme-temperature stability even

during prolonged staticcondit ions. Stablerheologies in tandem withultra-thin and slick filter cake deposits clear the

path for logging, casingand cementing

operations. Thesecharacterist ics of thefluid system enableaccurate perforation

placement, optimizedcompletions andquali ty reservoir characterization.

In an ultra-hightemperature exploration

well in the Gulf of Thailand, the

RHADIANT drilling fluid systemeffectively delivered f i l t rat ioncontrol and filter cake quality withstable rheological properties whiledrilling with zero lost circulation.For logging operations, the fluidsystem enabled the customer to

pe rform seven op enho le wi re li nelogging runs, despite the f luidremaining static for more than 90hours. Typical problems associated

with the usage of conventional non-aqueous drilling fluids, such as

bari te sag and stuck pipe, wereeliminated.

The RHADIANT ultra-high temperature non-aqueous drilling fluid system is the first drilling fluid proven todeliver stable rheological performance at BHT approaching 500 degF.

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What constitutes a successfulexploration company?

Why are some significantlymore successful than others,and consistently so?

And does size matter doeshaving the resources of a

large-cap company contributeto that success, or in factdetract from it?

As an investor, how do youchoose a company to investin?I suggests that the root of successful exploration lies in having

Intuition counts in

successful explorationa good nose for oi l . Thedifference between a large-capcompany and a small one is simplyone of scale. Large companieshave to spread their risk between acombination of near-fieldexploration with a focus on addingshort term value to exist ing

production hubs and impact

growth exploration or finding thenext big thing. Small caps rarelyhave the safety net of a material

producing asse t, so thei r focus ison finding new ones. But the

bo tto m li ne fo r bo th is ha vi ng agood exploration team.

In each case the need for good basic data and wide-ranging

Iain Bartholomew,Exploration and

Subsurface Director,Centrica and veteran

explorer, answersquestions posed to him by

DEW Journal related tooil and gas exploration .

Iain is a geologist at heart, beginning his career in Shell

before becoming InternationalExploration Manager at Oryx

Energy, and later Head of Geoscience at Hess. Roles

as Technical Director atVienco, VP Exploration and

Geoscience at Pluspetrol andTechnical Manager at Venture

have brought him to hiscurrent position as

Exploration and Sub-Surface

Director for Centrica. Hewas also recently VicePresident of the Geological

Society for a 6 year period.

The success of an exploration teamdepends on vast experience and knowledgeand how this is used the nose

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regional studies are crucial small-caps can achieve this just as well asthe large ones, though they mayhave to be more innovative andresourceful in finding the data theyneed. The success of an explorationteam depends on vast experienceand knowledge and how this is used

the nose.The understanding of risk and

reward of an exploration portfolio iscritical for both small and large capcompanies. A larger company willhave a different attitude to risk

compared with a pure explorationcompany after all we depend onthe larger companies for the majorityof our energy supply, and they inturn have to answer to their stakeholders buthaving wise ande x p e r i e n c e dexplorers wil l bewhat justifies that

caution in the shortterm with new andviable assets in thelong term.

So what makesa good explorer

or explorationteam?I suggests that it isa combination of

e l e m e n t s .Geoscience and

being excited aboutgeoscience is the

There is no substitute for the basics a solidunderstanding of the sub-surface, and immense

patience, though for me it isnt always about processes and procedures sometimes successcan depend on a random thought and thecourage to follow your nose

foundation. Its exciting evenwith vast experience it is possibleto find something new every day and intuition plays a large part inthat. Exploration companies needto provide an environment with anelement of freedom and evennurturing, to bring out the best intheir exploration team.

There is no substitute for the basics a so lid unders tand ing of the sub-surface, and immense

patien ce, though fo r me it isntalways about processes and

procedures somet imes successcan depend on a random thought and the courage to follow your nose. dewjournal.com

Face to Face

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O il and gas operators are sittingon vast reserves of data thathas the potential to transform theway they manage the integrity of their wells. Today, many lack

visibility at field or enterprise level because information relating to well production, barrier equipment anddesign is held in differentdepartments in various formats andunder different timelines.

Not only do these silos makeit difficult for senior executives andmanagement teams to collate,compare and report on well integritydata, but the length of time this can

take impacts on their abil i ty toidentify problem wells , makeinformed decisions and takeremedial action. With around half of

Gaining a green light on well integrity

Enterprise-wide visibility of operating well data enables oil andgas firms to ensure the right people have access to the rightinformation at the right time for rapid and informed decision making.

Dr Liane Smith (FREng), Director & Founder, Intetech, UK

all well workovers and shut-ins inmature f ields caused by wellintegri ty problems, this lack of visibility presents a significant risk and cost to the business.

The challenge is compounded by the fact many oil and gasoperators have grown byacquisition, which means certainasset information is stored or reported in different systems and isnot always readily available to theright decision makers.

Using web-based software withsmart functionality, it is possible toacquire information from multiple

sources including third-partydatabases and legacy systems anddisplay it in a single managementdashboard. This provides an instant

view of current well integrity statusas well as historical key performanceindicators (KPIs) at a well, field or enterprise level.

The data integrity challengeAlthough major improvements in

both well design and operating procedures have been made inrecent years, the integrity of well

barrier components is continuouslythreatened by the corrosive natureof the well fluids. Scaling, corrosionand failed well barrier equipment areall common issues that call for greatvigilance to minimise the risk of leakage. Importantly, managing wellintegrity is much more than simplyensuring safety during a currentactivity or specific scenarios, rather it concerns the sustainability of the

equipment to operate safely for thefull design life of the well.

As such, information on thestatus of safety-critical well barrier

Oil and gas operators are sitting on vast reserves of data that has the potential to transformthe way they manage the integrity of their wells. Today, many lack visibility at field or enterprise level because information relating to well production, barrier equipment anddesign is held in different departments in various formats and under different timelines.

Not only do these silos make it dif ficult for senior execut ives and managementteams to collate, compare and report on well integrity data, but the length of time this cantake impacts on their ability to identify problem wells, make informed decisions and takeremedial action. With around half of all well workovers and shut-ins in mature fields

caused by well integrity problems, this lack of visibility presents a significant risk andcost to the business.

The challenge is compounded by the fact many oil and gas operators have grown byacquisition, which means certain asset information is stored or reported in different systemsand is not always readily available to the right decision makers.

Using web-based software with smart functionality, it is possible to acquireinformation from multiple sources including third-party databases and legacy systems

and display it in a single management dashboard. This provides an instant view of current well integrity status as well as historical key performance indicators (KPIs) at awell, field or enterprise level.

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components must be completelydependable, and the performance of these components must be totally

predictable should a problem ariseat any given point in t ime. Anoperator must be confident thatthey know how their well barrier safety equipment is going torespond. For example, that if they

shut a sub-surface safety valve,they know with certainty its goingto shut in the several seconds itssupposed to, which could be a

matter of life and death in certainsituations.

Sustained annulus pressure,whereby casing pressure rebuildsafter being released, is the number one killer of wells. It can lead to anexternal leak or, at worst, result in a

blowout. Even if no leakage occurs,the risk is that when pressure within

the well rises above the design limitat which it is safe to operate (i.e. thesafe operating envelope), a failure of well barrier equipment can be too

risky to repair and therefore the wellhas to be abandoned. Again, poor quality information about annulus

pressure creates a real poss ib il itythat incorrect and perhapsdangerous decisions might be made.

Silos of well integri tyinformation make it difficult tocollate information for analysis and

review, which in turns makes it hardto identify inaccuracies that wouldotherwise al low operators to

pinpoint barrier components at risk

Well integrity management is more than just running thewells properly and in the optimal way; its about controllingall of the different factors that could be affecting the safetyof the well in real time continuously over the design lifewith a robust overarching system that ensures high integrityof the wells is established an

dew journal november 2012

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