UK

Oil

and

Gas

W

orld

Cla

ss C

apab

iliti

es

Deeper | Colder | Cleaner | Safer

The UK oil and gas industry offers world class capabilities. It is the internationally recognised global centre of excellence for the majority of stages of the supply chain.

Over 100 years of onshore exploration and 40 years in the North Sea have given UK companies unrivalled expertise in exploration, production, transmission and distribution. UK technologies are at the forefront of utilisation, safety and the environmental sector.

All of the skills, experience and expertise of the UK-based oil and gas sector and its supply chain are utilised internationally, generating $9.8 billion in export revenues.

UK Energy 1

Contents 2 Introduction 4 Exploration 8 Production 14 Transmission 18 Distribution 22 Utilisation 26 Processing 30 Environment 34 Safety 36 Decommissioning 40 Research and development 42 Skills and education 44 UK Trade & Investment 45 UK Energy 46 Contact addresses

UK Energy 2

Introduction The UK offers unrivalled, world-class capabilities in upstream and downstream oil and gas development, which can be found operating in oil and gas provinces throughout the world.

UK oil and gas companies offer the worldwide industry all the benefits of upstream experience that have been hard-won in 40 years operating in the North Sea. Downstream, the UK’s transmission, distribution, processing and utilisation capabilities come together successfully in one of the most complex, regulated and flexible markets in the world. This huge range of upstream and downstream competencies is applied internationally, with UK operating models and regulatory regimes widely acknowledged as the global standard and used as a worldwide benchmark.

Building on the UK’s globally recognised strengths of inventiveness, science and engineering, business, finance and management, UK firms have created world-leading solutions to oil and gas upstream, downstream and supply chain challenges. UK companies are routinely the first, and often the only, choice as partners for developing hydrocarbon prospects across the world, and increasingly as operators of deep-water exploration and production offshore.

As the sixth largest market for environmental goods, services and low carbon technologies, the UK is well positioned to develop hydrocarbon resources domestically and abroad in the cleanest, most sustainable ways possible. With 40 years of experience in recycling waste from offshore activities and life support, the UK’s oil and gas sector has long been a leader

in environmental technologies such as waste management. The potential for technology transfer of oil and gas capabilities to the renewables sector and carbon capture and storage (CCS) is huge.

The UK’s safety regime, and the safety culture it promotes within the industry, is regarded as world class. Nearly 7,000 wells have been safely drilled in the UK Continental Shelf over the past 20 years without a single blow-out. And the UK’s Oil Spill Prevention and Response Advisory Group (OSPRAG) is overseeing the development of a well capping device, designed for deep-water wells, which will play a major role in oil spill response contingency plans.

The UK hosts the headquarters and operational bases of many of the world’s largest energy corporations.

UK Energy 3

The supply chain has a value of $29 billion – a third of which comes from exports.

The UK has daily production of around 2.5 million barrels of oil equivalent (BOE).

The UK Continental Shelf has given up some 39 billion BOE over its production history, but still has a further 25 billion BOE of potentially recoverable resources. The UK intends to develop these resources in the cleanest, most sustainable ways possible.

UK Energy 4

Exploration UK geoscientists apply their unrivalled legacy of 200 years of leading earth science expertise to locate and appraise oil and gas reserves globally.

The UK is internationally recognised as the cradle of modern geology. The great British earth science pioneers developed the scientific fundamentals, such as stratigraphy, petrology and seismology, on which modern exploration geophysics, geological surveying and basin analysis depend.

The UK oil and gas sector’s expertise has been built and shaped by optimum performance in extreme environments. It has developed leading technologies and know-how to operate and overcome any exploration challenges – from the blistering heat and deserts of the Middle East, through the harsh and destructive North Sea as well as the deep oceans off West Africa and Brazil, to the extremes of the deep and icy Arctic.

Through application of its exploration expertise, the UK produces around 2.5 million barrels of oil equivalent (BOE) each day. Offshore reserves in the North Sea currently number 25 billion BOE and new discoveries west of the Shetland Isles and in the central North Sea show huge potential. This exploration expertise forms part of the UK’s oil and gas supply chain, responsible for exports of goods and services worth $9.8 billion each year.

The UK’s commercial oil and gas exploration sector is supported by world-class academic university departments and research institutes. UK earth science institutes undertake ongoing pure and applied research into the science, engineering and technology that is driving the exploration geophysics and drilling techniques of the future.

UK companies have been engaged in oil exploration since 1901, and offshore for the last 40 years in the UK Continental Shelf (UKCS).

UK Energy 5

Targeted exploration led to over 60 exploration and appraisal wells drilled in the UK Continental Shelf during 2010. One third of these were successful, adding up to 400 million barrels of oil and gas to UK reserves.

© Petroleum Geo-Services

UK Energy 6

Reducing risk Exploration geophysics and reservoir analysis.

UK exploration geophysics and survey firms reduce speculation risk though advanced, accurate basin analysis and reservoir appraisal. They do so by applying the latest field-based surveying methods, among them remote sensing and geophysical techniques, including gravity and seismic approaches.

A combination of UK designed and manufactured equipment, software and systems applied by expert geoscientists and engineers can offer the latest in 3D and virtual reality dynamic reservoir analysis, leading to the identification of high potential oil and gas plays. Application of this technology has lowered the ratio of commercial field identification from one in ten to one in three appraisal wells.

UK firms offer land- and marine-based surveying expertise that can be integrated with seismic, borehole and petrophysical data interpretation software to model and pinpoint optimum test-drilling locations. Capabilities developed in the North Sea have resulted in leading environmentally-sensitive surveying technologies, in particular seismic and sonar-based approaches that mitigate the impact of acoustic surveys on macrofauna.

Advances in exploration geophysics by UK firms in deep-water locations in the North Sea west of Shetland, in the Arctic and in the South Atlantic have created specific expertise and know-how in deep-water surveys. This unrivalled expertise can be applied in other regions showing hydrocarbon potential.

UK Energy 7

Maximising return Advanced Drilling and wellsite appraisal technologies.

The UK’s exploration services sector can offer drilling and wellsite appraisal services across the supply chain. It is adept at responding swiftly when the results of exploration programmes indicate hydrocarbon presence. Such speedy appraisal can either identify deposits of economic significance and accelerate likely production, or close down uneconomical plays and mitigate further costs.

UK drilling contractors have global reach and can bring drilling ships, semisubmersible rigs and jack-up rigs to play at significant depths. Unique drilling and borehole sensor technology developed in the UK can reduce costs and maximise data capture through real-time measurement while drilling (MWD) and logging while drilling (LWD), thus optimising wellsite appraisal.

Based on hard-won experience from offshore in the North Sea and onshore fields, UK exploration firms are at the forefront of environmental protection technologies that minimise the impact of underwater sound, produced water and drill cuttings on benthic and pelagic fauna and flora.

Firms based in the UK can provide wellsite evaluation and integrated reservoir analysis either in real-time as data is streamed live during drilling, or post-drilling via data centres located in strategic global locations, including the UK.

UK-developed products provide vital support for drilling operations globally, notably by enhancing safety and improving data acquisition and efficiencies through automation. These products range from high technology engineered components – such as drill bits and couplings, downhole technology and seismic imaging – to instrumentation, thermal imaging sensors, advanced sonar equipment and dynamic positioning systems.

Using the exploration expertise and technology of UK companies to revisit and reappraise older fields previously considered to be beyond their economic life has resulted in extended life and re-opening of older wells. This has significantly increased marginal return on investment.

GEOphySICal SURvEy DaTa CEnTRE

how energy saving can play its part in generating energy

By adopting the latest-generation energy saving technology, UK-based Petroleum Geo-Services is able to provide competitive seismic data processing services to its clients throughout the world. These services are regularly used to assist in the identification and development of new hydrocarbon energy sources.

The oil and gas services firm offers seismic and electromagnetic services, data acquisition and processing, plus reservoir analysis and interpretation to oil and gas companies worldwide. Its fleet of 16 seismic survey vessels trawls the world’s oceans to gather vast amounts of seismic data that

is then processed and interpreted to identify hydrocarbon plays with economic potential. For quality control and to ensure the seismic is usable, basic processing takes place on board, before the data tapes are helicoptered off the ships and couriered for bulk processing at data centres in the UK and across the globe. The firm’s UK data centre in Surrey, south of London, uses cutting-edge computing technology and proprietary software to turn all the raw geological data into 3D images.

Such high-end computing requires a huge amount of processing power that could consume a significant amount of energy and increase costs to clients. So, to remain competitive by driving data processing costs down, Petroleum Geo-Services’ data centre managers have installed the latest in free-air­cooling systems to reduce power costs and maximise up-time.

UK Energy 8

Investment in UK Continental Shelf production capacity will bring 13 new fields on stream and redevelop four existing fields. There are a further 67 potential new field developments with estimated reserves of 3.1 billion BOE.

UK Energy 9

production Advanced UK production expertise and technology will keep fields in the UK Continental Shelf producing into the 2040s, and by extending this know-how will maximise the life and return of hydrocarbon reserves globally.

Four decades of production experience in the harsh environment of the North Sea has resulted in the UK becoming a global centre of production excellence. Over 340,000 people are employed directly in the UK’s offshore oil and gas production and a further 100,000 are estimated to form the sector’s supply chain. In fact, the latter accounts for between 5% and 8% of the global market in oil and gas equipment and services.

The UK’s subsea engineering expertise is internationally recognised as leading the world, with the UK having pioneered new technologies in subsea design and engineering. From project management, design engineering, fabrication and manufacturing to subsea support and services, there are expert UK companies throughout the supply chain.

UK companies lead the field in production technology innovation, having revolutionised horizontal drilling technology and the 4D reservoir imaging techniques required to fully exploit it. Multi-well production interfaces, intelligent riser systems, ball and taper-based mooring technology and polymer mooring ropes have all been pioneered by UK businesses in the North Sea before being adopted worldwide. And UK innovations continue to lead production techniques worldwide. The latest UK engineering and technology advances range from non-intrusive pipeline pig monitoring, through the creation of deep-water

valves from high strength alloys, to positioning systems for remotely operated vehicles (ROVs).

The ROV, pipeline and production maintenance sectors continue to be dominated by the unique skills, experience and novel technologies provided by UK-based firms. Production operators have become expert at the development and application of environmental technologies that mitigate the impact of produced water and other discharges as a result of drilling and production. Operating production in deep water has presented a host of fresh challenges that have been overcome by UK companies. This has included spill incident responses that have led to the development of unique well-capping devices to minimise spills and restart production.

UK production is underpinned by a vibrant research and development environment in which global energy corporations, small and medium sized enterprises and leading academic research and universities all play an active role.

The UK’s subsea capability includes over 800 companies and 40,000 experts who create over $9.62 billion worth of services and products.

© BPP – Tech

UK Energy 10

Building platforms for growth Production platform design, construction and well-drilling technology.

As a result of its huge endeavour in the North Sea, the UK’s highly integrated production platform design, project management and construction sector is second to none, and has an unrivalled track record in exporting this expertise worldwide.

Creating offshore production infrastructure for the hostile North Sea forty years ago demanded huge and rapid engineering and technological innovation from UK firms. Since then, 470 offshore oil and gas installations have been built there, servicing about 5,000 wells and 10,000km of pipelines. And because the UK Continental Shelf is a mature field, with high operating costs, UK firms have learned how to run production operations with maximum efficiency.

UK companies fill every niche at every stage of the production lifecycle, providing the capabilities to scope the economic landscape and evaluate likely return on investment before any build costs are incurred. Once the decision to proceed is made, a huge and extended supply chain falls into place. This can provide exactly what the production project requires to meet its objective, from design, process engineering, fabrication and maintenance to supplying all the products, components and equipment a production platform requires.

Horizontal drilling techniques were originally pioneered by UK companies and have revolutionised oil and gas field development. Hard-won expertise from the North Sea, coupled with latest-generation 4D reservoir visualisation techniques, has provided UK operators with the expertise to design and implement directional well arrays that can significantly increase recovery, making small plays economical and enabling older fields to return to production.

Real-time monitoring while drilling (MWD) has been enabled by the development of downhole logging instrumentation, sensors and supporting IT infrastructure that can be monitored remotely. Advanced real-time monitoring is also a key maintenance tool, monitoring component wear and corrosion.

With an increasing industry emphasis on deep-water exploration and production, traditional areas of UK strength are all becoming increasingly important, including floating production, tethering and deep-water drilling expertise.

UK Energy 11

© Leighs Paints

UK Energy 12

Touching the surface of UK expertise Subsea capabilities, pipelines and knowledge transfer.

The UK is acknowledged as the global centre of excellence in subsea engineering, technology and project management. The country’s subsea contracting firms have seen their expertise continuously enhanced, developed and applied in offshore oil and gas fields across the world.

Since 2008, 43% of all UK oil and gas production has been through subsea wells. This achievement has only been possible as a direct result of the expertise developed by UK companies since the mid-1970s, when an increasing amount of North Sea production, expansion and maintenance took place beneath the surface of the sea. Demand for subsea expertise remains strong, with a further 40 new offshore facilities estimated to be required in the North Sea to fully exploit reserves.

As production in the North Sea has moved subsea, so UK companies have developed leading technologies to support well siting, capping and management, plus pipeline and cable laying and maintenance.

The global subsea hardware and equipment market is expected to grow by 23% to $139 billion from 2011-2015, more than half of which will be spent on pipelines. UK subsea sector exports comprise 56.5% of the sector’s output, woth an estimated $5.38 billion. The share of that market supplied by UK companies has grown consistently in recent years, and for the last two decades the UK has been a net exporter of subsea experts, embedding UK-trained professionals in oil and gas services firms in every hydrocarbon producing nation.

UK designed and manufactured remotely operated vehicles (ROVs) can be found in most of the world’s offshore fields, and UK firms are leading suppliers of the dynamic riser systems developed to connect seabed wells with floating production facilities.

There are no margins for error in extreme operating environments, and so quality assurance is a major capability embedded within every UK firm in the supply chain. This is highlighted by the fact that UK companies and their representatives are leading figures in the development of international engineering and quality standards for the subsea sector.

UK production and subsea capability is also becoming highly sought after in the renewable power generation sector. The core UK competences of design, fabrication and installation of offshore structures, cable supply and laying, plus operational support are highly transferable to building offshore wind, wave and tidal generative capacity. Partnerships between UK renewable technology companies and oil and gas field service firms are facilitating technology transfer between the sectors. And the lessons in efficiency learned by North Sea production operators are being used to drive down the costs of offshore renewable energy.

As a global centre of excellence in subsea engineering and technology, the UK also maintains a strong research base coordinated by the National Subsea Research Institute (NSRI). The NSRI coordinates the research activities of four major UK universities and over twenty companies, including global energy corporations, services firms and small to medium sized enterprises that offer highly focused niche skills.

UK Energy 13

WORlD-lEaDInG SUBSEa anD pIpElInE CapaBIlITIES

how Bp’s production technology has evolved globally from its north Sea origins

As the UK Continental Shelf (UKCS) exploration and production environments become more challenging, the development and implementation of subsea installations is playing a bigger and more important role in BP s offshore oil and gas production, with 50 per cent of North Sea production now being produced from subsea facilities.

BP s existing subsea and pipeline infrastructure is the largest in the UK sector. BP assets that currently utilise subsea infrastructure include the Foinaven and Schiehallion floating production storage and offloading units (FPSOs) and tiebacks on ETAP (the Eastern Trough Area Project), Andrew/Cyrus, Magnus and Bruce. Together, the subsea facilities on

these assets represent some 50 per cent of BP s global subsea wellstock, and comprise 178 subsea pipelines, 5000km of pipeline and umbilicals and 170 subsea trees.

Continuing their investment into the UKCS region, BP currently has several projects underway that plan to use the latest developments in subsea infrastructure to generate production. These projects include the Skarv development in Norway, the Devenick, Kinnoul/Andrew Area Development, and the Quad 204 redevelopment of the Schiehallion field in the UK.

In addition to the North Sea, BP s subsea portfolio currently includes important and valuable activity in Angola, the Caspian Sea, the Gulf of Mexico and Egypt, with new developments planned in many of these areas. Looking to the future, BP also has potential subsea development opportunities in Brazil, Libya, Australia, Russia and China.

pIG TRaCKInG, SIGnallInGanD DaTa lOGGInG

Maintaining pipeline integrity with pre-installed remotely monitored pigs

As exploration and production increasingly moves into deeper waters, pipelines follow, requiring offshore pigging providers to plan for operations at depths of 3,000m. This creates fresh challenges for pigging operators and for pig tracking, signalling and data logging suppliers such as Aberdeen-based Online Electronics.

In 2009, Petrobras developed the Hybrido gas field, offshore Brazil. The field development involved the installation of 141km of flexible

and rigid lines in four different fields. This field involved water depths of more than 2,000m, over 100km from shore, and pigs were pre-installed into the launchers months in advance of flooding, cleaning, gauging and testing operations.

Online Electronics supplied pig-tracking, signalling and data logging equipment that enabled proof of launch, proof of receipt and a means of tracking the pigs as the pipeline network was commissioned. The pipeline was successfully commissioned with all pigging and tracking products delivered meeting demanding performance criteria such as the battery-life by incorporating pressure-switch activation where appropriate, while also complying with the necessary pressure rating.

DESIGnInG ExTEnDED pRODUCTIOn lIfE InTO aGInGOIl anD GaS fIElDS

Cost-effective solutions to sustain production for a further 40 years on one of the oldest norwegian-sector north Sea platforms

Located almost 200 miles offshore of Norway in the southern part of the Norwegian North Sea, the Greater Ekofisk Area Development is in 70-75m (230-246ft) of water. Production on this platform began in 1971 and, thanks to innovative solutions provided by Mustang, part of Wood Group, will continue for a further 40 years. The overall plan for the field includes both refurbishment and replacement of existing facilities, as well as construction of new facilities to capture added value and sustain production.

Mustang provided front-end engineering design (FEED) for a new Ekofisk 2/4Z wellhead platform that is bridge-linked to the existing Ekofisk Complex. The project s objectives were to achieve design standardisation, ensure

minimum offshore work, and provide reliable and cost-effective solutions, with a high focus on integrating the existing and new facilities.

The new Ekofisk 2/4Z production facility comprises integrated topsides supported by a four-leg steel jacket with jack-up drilling support capabilities. The platform collects and exports multiphase production from 35 wells (36 well slots) to the existing Ekofisk Complex separation trains. Multi-phase production is transported across the bridge link to tie into the Ekofisk Complex at the existing Ekofisk 2/4M platform.

The Ekofisk 2/4Z platform includes well-testing facilities consisting of a three-phase test separator and two multiphase meters, well intervention and drilling support equipment, slurry handling, pressure relief/ depressurisation, plus bulk fluid transfer and storage facilities. And although the platform will not be permanently manned, facilities have been provided to support and accommodate personnel during well intervention, platform maintenance and operations activities.

UK Energy 14

Transmission UK-based firms have built a 7,600km transmission and storage network of unprecedented sophistication and flexibility, serving one of the most complex and demanding energy markets in the world. And they routinely lend their expertise to challenging international transmission projects.

In 1967, when the first North Sea gas was piped ashore, UK firms were faced with a unique challenge. They needed to replace local coal-gas municipal gasworks with a transmission and storage network that could pipe natural gas onshore from offshore North Sea gas fields, via new-build coastal gas terminals.

Those UK designers, project managers, engineers and contractors were starting with a clean sheet. They built a technologically advanced and future-proofed transmission and storage network, which supplies the UK’s gas-fired power station fleet and, via the distribution network, delivers natural gas into 21 million UK homes and businesses.

Imports account for a third of gas input into the UK’s transmission system, leading to the construction of liquefied natural gas (LNG) terminals and pipelines from Norway, Belgium and the Netherlands. UK companies have unrivalled experience in constructing high capacity subsea transmission networks and, with 40 years working in the North Sea, are able to operate in the harshest of environments.

As LNG exports have increased, UK-based companies have designed and built latest generation marine terminals and an impressive processing infrastructure, which includes re-gasification plants and storage that links seamlessly into the transmission and distribution network.

The transmission supply chain is extensive and includes a huge number and variety of firms applying specialist technologies and expertise. Specialisms include: pipe fabrication technologies using the latest composite materials; advanced valves; welding technologies and fixings; laying offshore and onshore pipelines – incorporating subsea expertise and trenchless technologies; anti-corrosion coatings; and the latest in low embodied energy materials to minimise carbon footprint.

That same design, engineering, construction and transmission management expertise is applied by UK companies in more than 100 countries worldwide, securing the energy security of sovereign states across Europe, the Middle East, Africa, Asia and the Americas.

UK Energy 15

The UK’s leading transmission capabilities are exported to over 100 countries.

Gas National Transmission System (NTS) The UK’s transmission system features 7,600km of high strength steel pipeline operating at 70-94bar. There are nine gas import terminals, 27 compressor stations and 400 above-ground stations in the network. Controlling all of this is the Gas National Control Centre, which operates 24 hours a day, 365 days a year. Supplies are maintained through sophisticated control protocols and complex demand modelling that ensures a continuous supply from ‘beach to meter’.

17 UK Energy 16

SMOOTh OpERaTORhaS IT COvERED

158km of angolan pipeline are treated with high-performance coating solution

UK-based Leighs Paints has successfully coated two sections of transmission pipeline in Angola. They run from production wells offshore to onshore liquefied natural gas (LNG) facilities. The company has applied its 150 years of paint and coatings expertise to develop a pipeline coating that improves the flow efficiency of the gas as it travels through the pipe. The firm has also developed multi-layer coatings to protect against substrate corrosion. This coatings technology is used in subsea and onshore pipelines for clients throughout the world.

In Angola, the first pipeline was 78km long with variable diameters up to 700mm and made up of pipe sections 12.3m long. The internal surface of the pipes was blast cleaned before a proprietary friction-reducing coating developed by Leighs Paints was applied to a depth of 75 microns. The second pipeline was 80km long with similar specifications.

For both projects, a total of 50,000 litres of coating was applied to provide long-term protection against corrosion. Application was by airless spray equipment with stationary nozzles, around which the pipes were rotated.

SUBSEa anD pIpElInETEChnOlOGy RESEaRCh InITIaTIvES

Deep water and long-tieback locations to benefit from UK-based research

UK-based Wood Group Kenny, a global leader in subsea and pipeline engineering, is taking the lead in groundbreaking industry technology initiatives. Two research projects, SURF IM (subsea, umbilical, riser and flowline equipment integrity management) and SLARP (slug loading and response in pipelines) have the financial and technical support of twelve international oil and gas operators.

SURF IM is led by Wood Group Integrity Management and MCS Kenny, both Wood Group Kenny businesses. The project aims to create a consistently applied best practice methodology that will satisfy subsea inspection and condition monitoring requirements through enhanced integrity management.

MCS Kenny and MSi Kenny are spearheading the SLARP research project. This will focus on developing design and analysis techniques to avoid pipeline vibrations caused by fluctuating internal fluids transported by the pipeline. Such vibrations can result in shutdowns or expensive intervention to repair or replace sections of the pipeline.

Each project will last between twelve and eighteen months, directly benefitting the UK and global industry.

UK Energy

Transmission capabilities UK transmission and storage capabilities are in demand worldwide.

From the wellhead to the power station and on to distribution networks leading to consumers’ homes in over 100 countries, UK-based firms can be found at every stage of the transmission and storage supply chain.

Detailed project planning, project management and design expertise prepare the ground for transmission pipelines of hundreds of kilometres. Demand modelling software built by UK developers can map out new network transmission and storage requirements. The UK’s subsea pipeline transmission and marine engineering expertise is second to none, having been perfected over 40 years in the extreme North Sea environment. And onshore, UK firms are expert at civil engineering construction of pipelines and associated structures, as well as at post-construction land remediation.

The UK has extensive capabilities to fabricate transmission pipework in a huge range of materials, including steel, alloys, plastics and advanced composites. Anti-corrosion and coating technologies not only extend the lives of pipelines, but internal pipeline coatings developed by UK companies also increase flow rates and reduce internal friction. UK supply chain businesses have also developed new technologies in welding, fixings, valves, regulators, compressor stations and all the equipment necessary to ensure the smooth creation, operation and maintenance of even the largest transmission networks.

Cutting-edge UK pigging engineering, including sophisticated control, monitoring and sensor technology, results in world-class inspection, integrity assessment, quality control and transmission management. And real-time field data gathering is monitored and controlled by the world’s foremost transmission, storage and demand management software and systems, all developed in the UK.

Safety is embedded at every stage of the transmission lifecycle, from new build construction onshore, offshore and in deep water, to end-user protection, leak detection and fire safety and suppression systems. And UK firms routinely provide leak detection sensors, fire suppression technologies and incident management systems, software and consulting to national transmission grids for international clients.

UK companies are developing low carbon technologies that use pipeline materials and infrastructure which minimise embodied energy and energy use in operation. Offshore construction by UK firms must adhere to tough environmental protection regulations and onshore post-construction remediation is mandatory. Not surprisingly, this impressive UK expertise is brought to bear on pipeline construction projects worldwide.

UK Energy 18

Distribution The UK is the world’s leading centre of distribution excellence, benefitting from more than 200 years of ongoing research, development and application. Over 50 per cent of the world’s gas processing and distribution programmes utilise UK know-how.

Innovation, safety, reliability and performance characterise the priorities and expertise of the UK’s supply chain companies. With 278,000km of low pressure gas distribution pipelines to build, renew, maintain and decommission, UK firms have developed unrivalled expertise in drilling, tunnelling, trenching and trenchless technologies, as well as in pipe fabrication, welding, jointing, sealing, installation and repair. And the UK’s supply chain companies have developed valves, compressors, fittings and all the associated hardware that the physical infrastructure requires.

Supporting the installation and operation of the distribution infrastructure is the UK’s sensor technologies sector, which brings together expertise from all other areas of the oil and gas industry with that of other sectors. Innovations in nanotechnology have led to outstanding advances in the sensor technology used for leak detection in homes, workplaces and throughout the network. In addition to improving safety, such advanced leak detection minimises distribution network wastage, considerably increasing efficiency.

UK distribution companies will invest $7.7 billion by 2020 in the refurbishment and expansion of their networks.

The UK’s distribution services sector is the world leader. As well as providing advanced research and development services, often in collaboration with academic research centres, UK consultants offer design, engineering and construction expertise. This is all backed up by the most advanced software development and demand management systems, plus strategic and asset management and consulting.

In addition, the UK’s financial sector offers specialist insurance and reinsurance products for energy markets, together with project financing expertise and access to the world’s largest private equity and corporate finance markets.

High technology meets volume distribution, as the smart meter is set to become a feature in every UK home and business, allowing energy consumers to make informed choices about how they consume energy. UK companies pioneered smart metering technology and will be responsible for its roll-out to 26 million UK energy customers by 2020.

From its early 19th century origins in gas lighting and pipe laying in London, to the latest innovations in 21st century smart metering, the UK distribution sector has been at the forefront of the field’s technological, economic and management development. And the lessons learned and resulting regulatory and technical expertise developed following privatisation of the UK gas industry in the 1980s, have been applied and used internationally as a template for utility sector change.

UK Energy 19

The UK’s distribution vers gas to n homes es through f steel,

network deliover 21 millioand business278,000km oiron and polyethylene mains pipeline.

UK Energy 20

Distribution capabilities UK firm fostering hi-tech and lean disciplines for international distribution supply chain.

The sheer size of the UK distribution network provides the demand volume that enables economies of scale, lean production processes, automation and cost efficiency to flourish, and all without compromising safety or service levels. Innovation and research and development specialists in the UK are able to draw on a huge base of expertise, supply chain companies and cash resources. This is further boosted by cost saving know-how and energy efficient technologies that are particularly strong in the UK distribution supply chain.

UK companies pioneered field force automation, to the extent that all major distribution network maintenance, repair and emergency services providers operate field teams with the latest information and communications (ICT) technologies. The use of rugged, internet-enabled ‘always-on’ laptops is commonplace and, together with field management techniques such as least-cost routing, has elevated response times and service standards, at the same time introducing significant cost efficiencies.

The UK’s high technology manufacturing expertise and experience is applied to product and component production, ranging from basic but expertly machined pipe fittings to highly calibrated sensor technology. And UK companies are among the world leaders in rapid prototyping and tooling technologies. This means that technology solutions to distribution challenges can be quickly and effectively created.

As a result of the ongoing drive to introduce efficiencies and reduce waste and leakage in the distribution network, UK firms have exceptional expertise in applying materials science and the use of smart materials to component and product design and manufacture. A 30­year programme is underway to replace the entire existing iron mains piping with polyurethane and novel materials, including composite materials originally designed in the UK for applications in sectors such as defence and aerospace.

The UK is home to a wide variety of laboratories and test houses that provide product and materials testing to international standards. UK distribution supply chain companies adhere to the highest international product quality standards, which mean that UK designs and products are suitable for use worldwide. A mature quality accreditation industry exists in the UK, and many small to medium sized enterprises (SMEs) in the distribution supply chain enthusiastically apply for and gain sought-after quality and environmental standards.

Training plays two major roles in the UK distribution sector. Firstly, it is recognised as a service qualifier and differentiator for UK companies seeking competitive advantage in a global market place, and so firms invest heavily in workforce skills. Secondly, there is a thriving training and education sector in distribution, and because over 50 per cent of distribution programmes globally use UK know-how, UK training firms are adept at exporting their training expertise.

© Leighs Paints

UK Energy 21

© Gettyimages

UK Energy 22

Utilisation UK gas utilisation expertise has created a vibrant product market of energy efficient devices, appliances and components for end-users. The UK utilisation service infrastructure is highly regulated and offers safe and expert solutions across the spectrum of domestic and industrial applications.

The UK’s gas utilisation goods and services sector has benefited from over 200 years of development. The UK mass market was one of the first to embrace and adopt natural gas. The legacy of expertise resulting from converting an entire nation from coal derived ‘town gas’ to natural gas throughout the 1970s has left the UK with the strongest, most flexible and capable supply chain in the world.

UK firms pioneered the product development of gas utilisation appliances for domestic markets, building unrivalled competences in heating, hot water, cooking and catering appliance design, testing, manufacturing and installation. At the commercial and industrial scale, the UK building services and heating, ventilation and air conditioning (HVAC) sector is internationally renowned for design innovation, engineering and construction, leading the field in environmental performance and low carbon technologies.

The UK’s exceptional product supply chain applies its full inventiveness, creativity and design engineering expertise to gas utilisation product components and finished products. UK firms supply precision engineered parts to many well-known global brands and the low carbon energy efficient element of many gas utilisation products are based on technologies developed by UK-based companies.

Utilisation services include the highly regulated domestic, commercial and industrial installation sectors. A gas engineer cannot operate legally in the UK without being registered with and subject to the ongoing and demanding safety and quality requirements of the Gas Safe Register (formerly CORGI). The UK’s model of gas engineer regulation is respected, replicated and aspired to internationally.

Alongside their technical infrastructure and product expertise, UK companies provide a huge range of after-market, analysis and gas utility services. Marketers have designed creative and compelling marketing schemes to stimulate uptake of gas appliances, and UK agencies have created marketing and advertising campaigns to promote the benefits of upgrading to or acquiring the latest energy efficient devices.

UK Energy 23

The UK gas utilisation industry directly employs 123,700 workers, between them responsible for the installation and maintenance of all domestic, commercial and industrial gas appliances.

The UK’s regulatory environment is one of the toughest in the world, respected, replicated and aspired to internationally. Gas Safe is recognised worldwide as the leading safety registration and competency model.

UK Energy 24

© Radius Systems Ltd

UK Energy 25

Utilisation capabilities UK utilisation supply chain companies embody a culture of innovation, safety and energy efficiency.

UK designed and built appliances, components and system solutions are internationally recognised as setting benchmarks for quality, safety, energy efficiency and innovation. The utilisation supply chain ranges from multinational corporations, through small to medium sized enterprises to sole traders and tradespeople with craft skills. What they all share is a commitment to uncompromising safety standards.

Innovation in utilisation is demonstrated by the world-leading combined heat and power (CHP) sector. UK-based firms have developed innovative micro-CHP boilers for domestic use, which allow householders to generate power that feeds back into the national power grid and enables householders to earn income from their surplus power. At an industrial scale, CHP plants have been installed in a huge range of industrial facilities, improving energy efficiency and reducing carbon emissions.

The UK has a fast-evolving natural gas vehicles (NGV) and dual fuels capability. At the commercial level, vehicle fleets are adopting automotive original equipment manufacturers’ (OEM) technologies that are part-developed by the UK supply chain. There is also a burgeoning market for retrofitting personal vehicles, and UK firms are developing affordable dual and single fuel solutions to meet the sector’s growing needs.

UK test facilities are used to certify utilisation products to over fifty European standards (CE marks) and routinely test imported products from around the world. Representatives of the UK supply chain and research community can be found on all major international standards committees for domestic and commercial appliances. And UK standards and building regulations are widely used internationally.

UK supply chain companies are behind the development and manufacture of many finished product components. For example, UK designed and manufactured sensors and controls are found in heating, hot water and catering appliances; less obviously, so too are UK-developed code and software. Gas turbines, steam turbines, boiler components and HVAC plant are created from components designed and built by UK manufacturers, while materials and engineering often transfers into the sector from other UK specialisms, such as aerospace, automotive, motorsport and defence.

The sheer size of the utilisation workforce and supply chain has led to the development of a substantial training and development expertise. Because the sector is so highly regulated, the level of professional, trade and craft skills required has led to a number of impressive UK professional and trade bodies. Together, they play a major role on the international skills development and accreditation stage.

UK Energy 26

processing The UK’s global engineering construction sector designs, builds and manages petrochemical and processing plants for the downstream oil and gas sector in 100+ countries, on projects worth over $25 billion each year.

With one of the largest concentrations of engineering construction expertise in the world, UK companies employ over 14,000 specialist designers, project managers, engineers and other related experts. And the figure for that huge pool of talent does not include the construction and supply chain workforce responsible for creating and maintaining plants in the UK and overseas.

The UK engineering construction sector has the capabilities to fulfil downstream oil and gas process plant requirements anywhere in the world. Working for 40 years on the margins of the North Sea has provided UK contractors with unique insights and abilities, enabling them to operate effectively in the most challenging and extreme environments. UK firms also design, build and manage petrochemical and refining, heavy and fine chemical, liquefied natural gas (LNG) and liquefied petroleum gas (LPG) plants and facilities.

There is a UK specialist at every stage of the processing plant project lifecycle. That means UK firms can offer feasibility studies and project financing, design, as well as both basic and detailed engineering, procurement and construction (EPC). UK companies also have commissioning, operational management and maintenance, end of use and recycling expertise. Safety is an intrinsic element of operating culture and is included throughout the project process.

Environmental management is firmly embedded into the UK processing supply chain and lifecycle. Environmental law and risk assessment, technology, pollution control and waste management expertise are key components of the added-value services that UK companies include with every project.

UK companies employ over 14,000 specialist designers, project managers, engineers and related experts, not including the construction and supply chain workforce responsible for creating and maintaining plants.

UK Energy 27

UK engineering construction firms have annual order books worth $25 billion and generate new projects worth $6 billion each year. Up to 70% of the value of new contracts is for projects outside the UK.

UK Energy 28

Downstream process partners Partners of choice for project management, design and engineering.

UK engineering construction companies consistently deliver outstanding results in challenging environments. They routinely prove themselves to be the partners of choice for project management, engineering, procurement, construction and commissioning of complex projects. With such a large and diversified expert workforce on hand, a UK specialist with the right skills, experience and capabilities can always be found, no matter how exacting and demanding the project requirements.

Alongside its technical competences, the UK processing industry can offer some of the world’s leading management consultancies and law firms with specific industry expertise. They can conduct preliminary and feasibility studies and create contractual arrangements and deal structures that meet the plant end-users’ needs.

The global reach and expertise of the UK’s financial sector can provide project financing options and risk assessment, insurance and reinsurance services that

are tailored to the requirements of the specific project. Major UK engineering infrastructure corporations are often open to alliance, joint venture and partnership arrangements that can draw in small to medium sized enterprises (SMEs) from the supply chain, providing improved procurement and supply chain security.

Design and engineering firms automatically adopt world leading and cutting-edge project lifecycle management (PLM), computer aided design (CAD), as well as process and flow modelling. As many of the latest technologies for these have been developed by UK companies, adoption is a matter of course.

Four decades of operating in the hostile North Sea has further fostered the UK’s already strong culture of innovation, research and development, with a focus on creating solutions to engineering challenges, that meet project cost and scheduling requirements within stringent safety parameters.

New build lNG TermiNal

Engineering, procurement and construction (EpC) of a new plant

Engineering, procurement and construction (EPC) company CB&I was contracted to design and build an LNG Terminal with unloading facilities and five Liquefied Natural Gas (LNG) storage tanks, each with a 155,000 cubic metre capacity.

The South Hook LNG Terminal project, at Milford Haven in the UK, is a receiving, storage and regasification facility. The project is part of the Qatargas 2 Value Chain, allowing Qatari LNG to be unloaded at the Terminal, and regasified before entering the UK market.

Most of the topside facilities were manufactured offsite as preassembled units and racks, which were then installed onto the completed substructure. At its peak, the construction workforce totalled over 2,500 UK employees and sub-contractors.

This project was worth over $1 billion, with work having started in November 2004 and the Terminal declaring full commercial operations in April 2010.

© South Hook LNG Terminal Company

UK Energy 29

from cradle to grave Construction, commissioning, operation, decommissioning.

The UK’s advanced processing sector can offer capabilities and product solutions to fulfil the requirements of every stage of the supply chain. UK firms have developed innovative modular and pre-assembly construction techniques that were originally designed for the challenges presented by the North Sea, but are now applied internationally as best practice. This allows dedicated plant component fabrication within the controlled environment of leading manufacturing facilities.

Modular construction disperses component production to best-of-breed suppliers throughout the UK supply chain. This pioneering approach allows highly specialist and innovative small to medium sized enterprises (SMEs) to bring their skills, experience and creativity to major projects, and fosters ground-breaking advances in process engineering and construction.

The UK’s North Sea heritage has resulted in examples of virtually all categories of downstream oil and gas facility being designed, built and operated by the UK processing supply chain. These include advanced examples of: oil and gas terminals; processing plants; liquefied petroleum gas (LPG) production; liquefied natural gas (LNG) storage and regasification; oil storage terminals; refineries and all related infrastructure, from transport to utilities.

The UK hosts internationally recognised inspection and quality assurance authorities and is responsible for driving many of the international technical standards in the process engineering sector. This unyielding and relentless focus on quality and safety is brought to bear by UK companies throughout the design, build, commissioning and operation of downstream oil and gas process plants.

upSTream meeTS dowNSTream

processing plants undergo major upgrades whilst remaining fully operational.

Shell’s St Fergus gas plant and its Fife natural gas liquids (NGL) complex in the UK have undergone major upgrades to extend their life. The three-year £350m rejuvenation project, using the technical expertise and project management skills of Shell and partner Esso, has extended the life of the assets, which are now significantly contributing to the UK’s gas demand.

The plants’ throughput was recently increased thanks to a major subsea engineering triumph that linked the UK to Norway’s offshore Gjøa field via a 130 km pipeline connected to the Far North Liquid and Associated Gas System (FLAGS). The latter itself

links into the Shell Esso Gas and Associated Liquid (SEGAL) system that supplies the St Fergus and Fife plants.

Upstream wet gas is piped directly into the downstream processing facility, with the St Fergus plant separating dry gas for sale to the UK national grid and natural gas liquids. NGLs are delivered directly to the Fife Natural Gas Liquids plant for further refining. Other major renovations are planned for the site, which will take place whilst keeping the system fully operational. This sustained capacity is expected to help keep pace with UK gas demand.

UK Energy 30

Environment UK companies offer world-leading low carbon and environmental products, services and solutions. These typically far exceed the requirements of the most demanding environmental regulatory frameworks – those set out, and rigorously enforced, by the UK Government and the European Union.

The UK’s market for low carbon and environmental goods and services is the sixth largest in the world, with the result that the UK has a well-deserved global reputation for providing world-class low carbon and environmental solutions. UK companies are active in every area of the global environmental goods and services sector, and at each stage in the supply chain.

The UK oil and gas sector has embraced low carbon and environmental technologies and services, developing a wide range of outstanding solutions and competencies that are delivered internationally. Examples appear at every stage of the oil and gas lifecycle: seismic surveying is conducted in such a way as to protect marine wildlife; the environmental impact of drilling muds and produced waters are mitigated; and transmission networks use lightweight PVC pipes with low embodied energies.

In addition, the UK’s decommissioning programme – projected to cost up to $49 billion between now and 2040 – has at its heart future-proofed environmental protection, waste management and recycling technologies developed and implemented by UK companies.

The UK-based International Spill Control Organisation is the world’s largest international body for hydrocarbon and chemical spill control, mitigation and management. It was founded in the UK in 1984 and continues to serve global energy firms, organisations and governments by improving preparedness for agile and effective responses to hydrocarbon and chemical spills.

Carbon capture and the processes of transport and storage are being pioneered by UK firms, including for the depleted oil and gas fields of the UK Continental Shelf (UKCS), which have an estimated capacity of up to 9.9 billion tonnes of carbon dioxide (CO2). And cutting-edge geological research by UK companies into the use of saline aquifers in the UKCS has revealed that as much as 52.7 billion tonnes of CO2 could be captured and stored.

The UK’s environmental regulator for offshore oil and gas activity is the UK Government’s Department of Energy and Climate Change (DECC). Its regulatory models are globally acknowledged as being at the forefront of regulatory best practice and are replicated in many jurisdictions across the world.

There are nearly 55,000 low carbon and environmental goods and services companies active in the UK, between them employing almost 900,000 people, and forecast to rise to an estimated 1.2 million people by 2015.

UK Energy 31

The UK low carbon and environmental goods and services sector is valued at over $183 billion. The Carbon Trust forecasts that UK companies have the potential to generate up to $100 billion by commercialising low-carbon innovation.

© Nick Manners

UK Energy 32

an IDEal EnvIROnMEnT fOR TEChnOlOGy TRanSfER

an ideal environment for technology transfer

linking offshore oil and gas capabilities with renewable energy generation

Talisman Energy (UK) Limited and Scottish and Southern Energy developed the Beatrice Windfarm Demonstrator Project, comprising two 5 MW wind turbines in water depths of up to 45m. The two test turbines are located in the Beatrice field, offshore of the North East coast of the UK, and linked to the Beatrice Alpha production platform by an undersea cable.

A key component of the project was to assess the impact of installation and operation of deep-water wind turbines on the environment. During construction, the impact of underwater noise from piling on marine life was assessed and mitigation technologies, such as ‘soft-start’, were examined. Environmental studies evaluated the electromagnetic impact of power cables on fish and cetaceans, as well as turbine collision hazards for bird life and noise pollution during operations.

UK-based oil services company Wood Group provides operational and maintenance support for the turbines.

UK Energy 33

pollution prevention and control Environmental solutions tailored to the onshore and offshore oil and gas industry.

UK companies apply leading pollution control and clean-up technologies in spill zones around the world for a range of international oil and gas producing clients.

The country’s oil and gas sector environmental services firms have decades of onshore and offshore pollution and spill prevention and mitigation experience. In fact, because of the spill and prevention control and prevention expertise and technology applied by UK companies in the North Sea, no annual spill total has exceeded 61 tonnes of oil in the entire UK Continental Shelf in the last five years; and in this five-year period, production has averaged 69 million tonnes of oil per year.

Offshore installations in the North Sea return all life support waste for management onshore, or recycle and manage life support and operation waste offshore, driving UK oil and gas field services firms to become one of the leading sources of waste management and recycling technologies globally. This has led to world-leading advances in the development of waste management technologies and techniques for drilling mud and produced water.

UK marine pollution firms have created and apply environmental technologies that include prevention technologies, incident planning and management. Pioneering technologies for spray systems, dispersants, booms and skimmers for containment and collection, as well as waste treatment systems, have all been developed in the UK.

Onshore and air pollution prevention and management are key features of the UK oil and gas sector, and this expertise is routinely applied to oil and gas industries outside the UK. A combination of environmental and ecological impact assessment, fit for purpose design and engineering, pollution control measures and monitoring protect groundwater and the natural environment from onshore pollution incidents, as can be seen in BP’s Wytch Farm onshore field.

In addition, oil and gas offshore installations and onshore petrochemical plants are a potential source of airborne and soil contaminants, so onshore processing facilities are designed to mitigate air pollution and ground contamination and for the protection of the water table and water courses.

The UK’s transmission, distribution and utilisation sectors have created a wealth of environmental competencies and technologies in the businesses that service these sectors. This UK environmental expertise can be applied to the petrochemical infrastructure of any oil and gas producing nation.

© Wood Group © Wood Group

UK Energy 34

Safety The UK’s oil and gas sector set itself the target of becoming the safest oil and gas exploration and production province in the world, which has led to the pioneering ‘goal setting’ approach to health and safety adopted globally.

The harsh conditions of the North Sea have bred an outstanding safety culture that has become embedded through the UK’s oil and gas sector, and which UK companies adopt when operating internationally. Safety technologies that encompass the entire oil and gas lifecycle have the ‘developed in the UK’ stamp on them. And today, from initial exploration to decommissioning, UK firms are acknowledged leaders in supplying safety products, services, systems, software and training to international oil and gas operators and supply chain businesses.

Oil and gas sector specialists in the UK have routinely broken new ground in safety technology. They have created innovations such as: well protection sleeves; portable hyperbaric chambers for deep sea divers; safe radio repeaters; fireproof powder coatings for structural members in onshore and offshore installations; and lifting hooks that have revolutionised heavy lift safety.

A UK-based firm is currently manufacturing a revolutionary well capping device designed to play a major role in oil spill response contingency plans. The cap’s design has been overseen by the Technical Review Group of UK safety organisation the Oil Spill Prevention and Response Advisory Group (OSPRAG). Although there have been no blow-outs in the UK for over 20 years, the new cap will improve safety and environmental protection responses worldwide.

UK companies also provide the full range of basic, but essential, oil and gas safety solutions, such as: photo­luminescent safety signs; low level escape systems; plus specialist tapes and anti-slip products. All are designed for the arduous operating environment of the North Sea and extreme conditions found throughout the world.

To combat safety risks posed by hazardous substances, the UK has developed sensor technologies that can detect combustible vapours that are linked to active fire and gas protection systems and software able to assess and react to risks. Advanced intelligent heating, ventilation and air conditioning (HVAC) systems developed in the UK are able to respond to chemical leaks and effectively evacuate smoke and fumes.

A recognised centre of excellence for marine and flight safety, the UK has pioneered the use of Global Positioning Systems (GPS) for offshore helicopter operations. The country also leads the world in radar signal processing infill solutions for overcoming the challenges of wind farm induced radar coverage black spots.

In addition to technology based safety solutions, the UK oil and gas sector leads the world in safety training. The industry owned Oil and Gas Academy, OPITO (formerly known as the Offshore Petroleum Industry Training Organisation), assesses and coordinates industry safety training needs. It also works with energy companies, the supply chain, plus public and private sector training providers to ensure that the safety training needs of the industry and its workers are met.

Extensive deep-water drilling experience West of Shetland in the North Sea, as well as in the North and South Atlantic and the Arctic, has led UK companies to develop world leading competencies in deep-water operations safety. UK solutions are in active and successful use around the globe.

© Fern Communications

There has not been a blow-out in the UK in over 20 years of offshore operations. The UK’s regulatory regime, and the safety culture it promotes within the industry, is widely regarded as world class.

UK Energy 35

nearly 7,000 wells have beesafely drilled in

n

the challengingconditions in theUK Continental Shelf over the past 20 years.

SafETy RaDIO REpEaTERElIMInaTES COMMUnICaTIOnS BlaCK SpOTS

portable aTEx radio repeater permits safe communications in explosive environments

Fern Communications has designed and manufactured a two-way portable radio repeater that can eliminate radio black spots and enable data and audio transmissions in confined spaces or where structures block radio signals. The FRX variant of the technology conforms to European ATEX directives, which means it can be safely used in environments with an explosive atmosphere, such as on an offshore oil and gas installation, or on board an oil tanker or bulk gas or LNG (liquefied natural gas) transporter. The devices are both portable and ruggedised, making them suitable for use offshore.

The UK-based company was contacted by Qatargas, the world’s largest LNG producer, which was experiencing radio communications issues with its natural gas condensate tanker fleet. Qatargas’ natural gas condensate fixed-point mooring (FPM) outlets are located offshore. To load the condensate, tanker captains must position the front of their vessels adjacent to the FPM. However the signal of the radio communications used in such manoeuvres is attenuated by the vessel’s steel structure, which lies within line of sight of the bridge and the sea level FPM, creating a dangerous black spot.

In December 2010, Fern Communications visited the Qatar gas terminal of Ras Laffan and completed successful tests on board a condensate tanker. Qatargas has since placed their first order and are looking for further uses for the product. Fern Communications’ portable repeaters are also being used in the UK, Norway, the Gulf of Mexico and Taiwan. International clients include both upstream and downstream companies, as well as supply vessels and fire brigades.

UK Energy 36

Decommissioning UK companies have created an exceptional decommissioning supply chain. Their expertise is continually refined through the ongoing dismantling of a vast network, recycling up to 470 North Sea installations, thousands of wells and tens of thousands of kilometres of pipelines.

Much of the oil and gas infrastructure created in the North Sea is destined to be decommissioned by 2040 at a cost of $49 billion. UK companies are at the forefront of the complex supply chain responsible for removal, bringing to shore and recycling or disposing of these offshore structures. The process is well underway, with up to 8% of the UK Continental Shelf’s infrastructure already decommissioned or redeployed.

The technical challenges are considerable. Most production platforms are steel structures that must be dismantled in the harsh North Sea environment and brought back to shore for recycling. Some concrete gravity base structures, which can weigh up to 600,000 tonnes, as well as the heaviest steel jacket footings and piles, are likely to remain in place and will need navigation aids to alert shipping.

The UK oil and gas value chain has developed huge capability throughout the first 40 years of North Sea production, continually adapting to maximise production and improve efficiency, safety and environmental performance. It is adept at accessing smaller and more remote reservoirs, providing innovative designs and technologies for deeper water, as well as for higher pressures and temperatures. The introduction of major and complex decommissioning programmes is just the latest phase of this evolution.

UK decommissioning supply chain companies are already operating internationally, applying expertise and experience to decommissioning projects in offshore zones across the world.

UK companies are meeting decommissioning challenges that include routinely dismantling, returning to shore and recycling structures the size of the Eiffel Tower, whilst ensuring marine and other environmental demands are met.

UK Energy 37

90% of the 470 offshore installations in the north Sea will be completely removed from their marine sites and brought to shore for re-use, recycling or other disposal, costing an estimated $49 billion between now and 2040.

DECOM nORTh SEa – WORKInG TOGEThER TO MaxIMISE UK ExpERTISE

Spurred by the sheer scale of the decommissioning programme required to dismantle the vast majority of the 470 North Sea installations over the next two decades, the UK’s oil and gas industry has come together to create Decom North Sea. In doing so, the industry is maximising the capabilities of the UK’s decommissioning supply chain through knowledge transfer, facilitating collaborative activities and improving efficiency.

© Proserv Offshore

UK Energy 38

DEEp-WaTER DECOMMISSIOnInG

Global cutting company creates bespoke tooling to bring down deep-water platform off Japan

Subsea maintenance, abandonment and decommissioning firm Proserv Offshore was awarded the subsea cutting contract for the decommissioning of the Iwaki platform off the north-east coast of Japan. The project covered everything from developing new tooling to supervising the entire cutting operation using remotely operated vehicles (ROVs).

The technical challenges were considerable, because the eight-legged 20,735 tonne platform, the largest offshore platform in the region, was situated in 154m metres of water. And the client demanded exacting parameters for every element of the project, such as fly-to-place capabilities for the ROVs that were used at depth to cut the legs.

Proserv Offshore also had to create dedicated cutting tools. The new tooling was designed and developed within 14 weeks by the firm’s in-house engineering and manufacturing teams. It included a bespoke saddle pipe cutter, a technically advanced launch runner cutting tool and a unique diamond wire cutting tool.

Part of the extensive trial process completed during testing of the cutting tools was to perform a diamond wire cut on a full-scale mock-up of the platform leg under compressive loads of 560 metric tonnes. After the successful trials, the equipment was mobilised to a heavy lift vessel (HLV) so that cutting operations could commence.

© Proserv Offshore

UK Energy 39

Decommissioning capabilities The strength of the UK’s offshore decommissioning supply chain.

Offshore decommissioning projects vary in their complexity and challenges. This is reflected in the breadth and diversity of the UK companies that form the decommissioning supply chain. Platforms in the southern North Sea tend to be for gas, and smaller and lighter in weight due to relatively shallow water depths. Infrastructure in the central and northern North Sea tends to be significantly larger, heavier and more complex. UK companies have developed project management competencies, techniques and technologies that enable them to deal effectively with all the decommissioning challenges thrown up by these variables.

All oil and gas infrastructure requires careful planning, engineering, co-ordination and management to ensure that it is decommissioned and de-constructed with the utmost attention to safety, full care for the environment, cost containment and with no impact to the reputation of the many parties involved. UK companies have world-leading capabilities in all these areas.

The UK’s supply chain, already highly regarded globally for its expertise with exploration, production and through life support, is now bringing forward new decommissioning technologies and innovative techniques to be adopted on decommissioning projects around the world. UK oil and gas operating companies are co-operating on an unprecedented scale to provide efficient and effective approaches to these complex projects. Ongoing cooperation takes place between oil and gas operating companies, contracting organisations, service specialists, technology developers, equipment providers, professional services firms, marine logistics experts and onshore disposal facilities.

UK companies are renowned for their expertise in conceptual and front-end engineering design, project management, subsea technologies, production optimisation, asset integrity, downhole tooling and technologies. Decommissioning is the latest in a long line of pioneering technologies and industry strengths, and will undoubtedly find wide-spread applications worldwide.

UK Energy 40

Research and development Underpinning the UK’s world-class oil and gas expertise is an outstanding research base made up of leading international academic and corporate research institutes.

The scope of the UK’s oil and gas research base encompasses every facet of the industry and its supply chain. UK companies, universities and research institutes conduct pure and applied research into a diversity of areas, and it is that breadth and depth of research that provides the UK’s oil and gas sector with its world-class capability. Currently, research to support the oil and gas supply chain is being conducted across various areas of science, engineering, safety, economics, management, finance, IT and many other disciplines. And a great deal of inter-disciplinary research is being undertaken, too, building on the UK’s unrivalled track record of oil and gas sector innovation.

UK companies are pioneering new technologies throughout the supply chain and covering every stage of the oil and gas cycle. Research into subsea technologies for deep-water exploration, production and transmission, particularly in Arctic environments, is a particular strength of UK industry research. There is also a focus on environmental technologies to optimise the carbon footprint of the hydrocarbon extraction and power generation sectors.

Over 40 UK universities conduct earth, marine and environmental sciences teaching and research activities that are directly relevant to the oil and gas sector, and these are complemented by the ongoing work in over 50 university engineering research departments. These include Cambridge and Oxford Universities, which are ranked joint 6th in the world’s university rankings.

Learned societies and professional bodies, some of which have been facilitating earth sciences and oil and gas research for over two centuries, play a huge international role in promoting excellence, coordinating research, encouraging knowledge transfer and sharing expertise. The Geological Society of London, Petroleum Exploration Society of Great Britain and the Institution of Civil Engineers are active around the world and have significant global memberships.

SubSea reSearch aNd SkillS developmeNT

linking subsea academic and industrial research, development, training and education

The National Subsea Research Institute (NSRI) is an industry academic partnership that brings together many of the UK’s leading university earth science research departments with the research arms of UK-based energy corporations and supply chain companies, together with industry body Subsea UK.

NSRI provides a focus for research and development across industry and academia, helping to direct academic research towards industry priorities. It also acts to ensure that a mechanism is in place to sustain the UK skills base at the forefront of the delivery of technology solutions. A key feature of the institute is its long-term perspective – it aims to identify technical barriers to future developments over a 10 to 25 year time horizon.

UK Energy 41

To fast track the development of new energy technologies, the private-public partnership Energy Technologies Institute will receive research funding of $2billion over the next ten years. pRODUCInG InnOvaTIvE OIl

anD GaS SOlUTIOnS

The Industry Technology facilitator (ITf) achieves ground-breaking technology solutions

The Industry Technology Facilitator (ITF) is an independent, UK-based, not-for-profit body owned by 25 of the major UK and global energy corporations and oil and gas service companies. It identifies business driven technology needs within the sector and facilitates the development and implementation of novel technology solutions.

Each year the ITF maps its members’ future technology needs and identifies the key topics that will drive its research programmes. Projects are fully funded by the companies behind ITF and the objective is to develop and implement technology solutions that satisfy member companies’ needs and provide new solutions to real issues faced by the global oil and gas industry.

To date, 167 technology innovations led by the ITF have become commercial solutions put into practice in the oil and gas sector. These include reservoir isolation barriers, reservoir simulation tools, automated multiple pig launchers and remote pipeline inspection technologies.

The UK’s Industry Technology Facilitator (ITF) has been responsible for launching 167 revolutionary oil and gas technology solutions and securing industry funding of nearly $81.5 million.

UK Energy 42

Skills and education The UK is internationally recognised as a global centre of skills and education excellence in the oil and gas sector, exporting its exceptional training services globally. And the depth and diversity of UK training and education provides UK-based companies with world-leading expertise and a highly skilled and uniquely flexible workforce.

The UK’s oil and gas production sector and its supply chain employs nearly half a million workers. Most oil and gas sector and supply chain workers are highly educated and skilled. They are typically trained in both their area of technical competence and in crucial offshore and onshore survival and safety skills, as well as in relevant business, finance and management. And continuing professional development is a priority, ensuring that the UK not only has the skills needed today, but also those likely to be required in the decades to come

To maintain such a huge and skilled workforce requires a substantial learning and education infrastructure, which comprises universities and professional bodies, skills, trade and craft councils, plus commercial learning and training companies. The sector even has its own Oil and Gas Academy, OPITO, which is industry owned and funded. The UK learning and training sector has historically been pioneering in the use and application of distance learning and this trend has continued with the provision of high quality online learning resources at all levels of qualification in the industry.

UK universities enjoy a high percentage of overseas students, offering undergraduate and postgraduate courses in the scientific, engineering, business and finance areas typically required by prospective oil and gas professionals. Many UK universities have overseas campuses and international partnerships. And UK professional bodies require chartered members to maintain their status through rigorous continued professional development (CPD), which has led to a vibrant UK and export market in professional training, particularly in science, engineering, law and finance.

UK skills and expertise are transferred to client and host country workforces when UK companies are engaged in international joint ventures (JV). Knowledge transfer can occur both when UK company personnel work on site and when the overseas partner company’s personnel spend time in the UK. This results in up-skilled workforces benefitting from UK oil and gas expertise.

The demand for appropriately skilled or experienced staff in the oil and gas sector continues to outstrip supply, placing training and development firmly on the UK’s academic and corporate agendas.

UK Energy 43

OpITO, the UK Oil and Gas academy, delivers world-leading standards, qualifications and workforce development frameworks used by employers in 30 countries.

The uk’S iNduSTry owNed oil aNd GaS academy

OPITO (formerly known as the Offshore Petroleum Industry Training Organisation) is an oil and gas industry owned organisation that acts as the sector s focal point for skills, training and workforce development. It works closely with employers, the education sector, universities and commercial learning and training providers to ensure the oil and gas workforce is safe, skilled and effective. It has an extensive overseas arm with satellite offices in the Middle East and Asia.

UK Energy 44

UK Trade & Investment (UKTI) UK Trade & Investment (UKTI) supports UK Energy Excellence, a cross industry, cross Government initiative to maximise global recognition of the UK’s excellence in energy.

UKTI is the Government department that helps UK-based companies succeed in the global economy and assists overseas companies to bring their high-quality investment to the UK.

UKTI offers expertise and contacts through a network of international specialists throughout the UK, and in British Embassies and other diplomatic posts around the world.

To contact the UKTI Energy Sector Specialists:

T +44 (0)20 7215 8000 W www.ukti.gov.uk

For more information on UK Energy visit:

W www.ukenergyexcellence.com W www.decc.gov.uk W www.bis.gov.uk

UK Energy 45

Why UK Energy? The UK has always been a pioneer in the energy sector. The eighteenth and nineteenth centuries saw the birth of the industrial revolution powered by water and coal. In the twentieth century we developed new technologies to access the oil and gas reserves of the harsh environment of the North Sea. The twenty first century sees the UK as a world leader in wave and tidal power systems and other low carbon technologies as well as nuclear power generation.

Today the UK energy sector has an enviable reputation around the world founded on five key principles:

iNNovaTioN One of our most important abilities is to look at challenges and problems afresh and take a different perspective. We are known for being pioneers.

QualiTy We are respected and trusted throughout the world for our quality of work and the reliability this brings. We also have a reputation for working hard to deliver to specification. We are seen as a safe pair of hands.

adapTabiliTy We are not rigid in our thinking and are considered flexible and open to ideas. The solutions we offer are diverse. Solutions right across the energy mix, solutions that are truly cross-border.

SuSTaiNabiliTy We have a keen eye to the future and are looking for sustainable energy solutions not just for the UK but also worldwide. Whether it is the more sensible use of existing energy sources or the development of new technologies, our focus is on long-term sustainable change, not short-term gain.

kNowledGe Perhaps our most valuable and unique resource is our workforce which underpins our excellence in energy. Their exceptional skills and abilities are founded on a firm foundation of first class education and training. The breadth of our energy expertise means that we are trusted worldwide.

www.ukenergyexcellence.com

UK Energy 46

Contact addresses aberdeen & Grampian Chamber of Commerce Head Office: Greenhole Place Bridge of Don Aberdeen AB23 8EU, UK Tel +44 1224 343900 Fax +44 1224 343943 Email info@agcc.co.uk Website www.agcc.co.uk

British Chemical Engineering Contractors association Head Office: 1 Regent Street London SW1Y 4NR, UK Tel +44 20 7839 6514 Fax +44 20 7930 3466 Email rod.dean@bceca.org.uk Website www.bceca.org.uk

Decom north Sea Head Office: Riverside House Riverside Drive Aberdeen AB11 7LH Scotland, UK Tel +44 1224 224129 Fax +44 1224 224301 Email shillyear@decomnorthsea.com Website www.decomnorthsea.com

East of England Energy Group (EEEGR) Head Office: Beacon Innovation Centre Beacon Park Gorleston Great Yarmouth Norfolk NR31 7RA, UK Email office@eeegr.com Tel +44 1493 446535 Fax +44 1493 446536 Website www.eeegr.com

Energy Industries Council (The EIC) Head Office: 89 Albert Embankment London SE1 7TP, UK Tel +44 20 7091 8600 Fax +44 20 7091 8601 Email info@the-eic.com Website www.the-eic.com

Industry Technology facilitator (ITf) Head Office: The Enterprise Centre Aberdeen Science & Energy Park Exploration Drive Aberdeen AB23 8GX, UK Tel +44 1224 222410 Website www.oil-itf.com

nOf Energy Head Office: First Floor Thames House Mandale Business Park Belmont Industrial Estate Durham DH1 1TH, UK Tel +44 191 3846464 Fax +44 191 3846611 Email jleng@nofenergy.co.uk Website www.nofenergy.co.uk

Oil and Gas UK Head Office: 3rd Floor The Exchange 2 62 Market Street Aberdeen AB11 5PJ, UK Tel +44 1224 577250 Email info@oilandgasuk.co.uk Website www.oilandgasuk.co.uk

UK Energy 47

OpITO Minerva House Bruntland Road Portlethen Aberdeen AB12 4QL, UK Tel +44 1224 787800 Fax +44 1224 787830 Email reception@opito.com Website www.opito.com

pipeline Industies Guild Head Office: F150 First Floor Cherwell Business Village Southam Road Banbury OX16 2SP, UK Tel +44 20 7235 7938 Fax +44 20 7235 0074 Email enquiries@pipeguild.com Website www.pipeguild.com

SBGI Head Office: Camden House Warwick Road Kenilworth Warwickshire CV8 1TH, UK Tel +44 1926 513777 Fax +44 1926 511923 Email mail@sbgi.org.uk Website www.sbgi.org.uk

Society of Maritime Industries Head Office: 28-29 Threadneedle Street London EC2R 8AY, UK Tel +44 20 7628 2555 Fax +44 20 7638 4376 Email info@maritimeindustries.org Website www.maritimeindustries.org

Subsea UK Head Office: The Innovation Centre Exploration Drive Bridge of Don Aberdeen AB23 8GX, UK Tel 0845 505 3535 Email admin@subseauk.com Website www.subseauk.com

UK Spill association Head Office: Unit 1 Riverside Business Park Buxton Bakewell Derbyshire DE45 1GS, UK Tel +44 845 6259890 Fax +44 845 625 9891 Website www.ukspill.org

Delivering energy excellence

A range of UK Government support is available from a portfolio of initiatives called Solutions for Business. The “solutions” are available to qualifying businesses, and cover everything from investment and grants through to specialist advice, collaborations and partnerships.

UK Trade & Investment is the government organisation that helps UK-based companies succeed in the global economy.

We also help overseas companies bring their high-quality investment to the UK’s dynamic economy – acknowledged as Europe’s best place from which to succeed in global business.

UK Trade & Investment offers expertise and contacts through its extensive network of specialists in the UK, and in British embassies and other diplomatic offices around the world. We provide companies with the tools they require to be competitive on the world stage.

For further information please visit www.uktradeinvest.gov.uk or telephone +44 (0)20 7215 8000.

Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation and Skills, and the Foreign and Commonwealth Office) accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned.

The paper in this document is made from 50 per cent recycled fibre and is sourced from sustainable and well-managed forests. The inks are vegetable oil based and contain resins from plants/trees.

Published June 2011 by UK Trade & Investment © Crown Copyright URN 11/866