Turning challenges into opportunities - Resilience of rigs, drilling, oil, gas, and LNG
Offshore Energy Today
Offshore Energy - Fossil Energy: Home of Energy Transition ?? Connecting energy security with sustainable solutions ??
Challenges are inevitable and can be used to spur further advancement, progress, and innovation, promoting thinking outside the box. Headwinds and tailwinds surround all energy pursuits, however, some have been known to turn challenges into growth opportunities more easily than others. Fossil fuels have their fair share of challenges and are facing numerous ones ranging from technical to regulatory and even legal ones. However, many feel that the green transition is not a solution to the energy crisis symptoms nor can it solve it in the foreseeable future.
One of the biggest roadblocks in developing future oil, gas, and LNG projects is climate change and litigation based on climate grounds. According to Zero Carbon Analytics, the number of cases filed against fossil fuel companies each year has nearly tripled since the Paris Agreement was reached in 2015, with 86 climate lawsuits filed against the world’s largest oil, gas, and coal-producing corporations such as BP, Chevron, Eni, ExxonMobil, Shell, and TotalEnergies. The research has pinpointed three categories of lawsuits as being on the rise in recent years, encompassing compensation for climate damages (38% of cases); misleading advertising claims (16%); and emissions reduction (12%).
However, the fossil energy industry still has an in, spurred by global energy security concerns and the need to shore up supplies and alleviate fears of shortages while pursuing a new low-carbon and carbon-free era to unlock zero-emission production and meet global demand. A case in point is encapsulated by the ongoing LNG permitting saga in the U.S. which showcases the division between different courts over climate change lawsuits and the imposed liability for pollution that originates beyond the borders of these courts.
Previous Monday, the U.S. Supreme Court put an interesting case in front of the U.S. Solicitor General with an invitation to provide its take on a request made by red states to reject 'malicious' climate change-related prosecution brought on by blue state governments against fossil fuel companies. Legal experts have quickly interpreted such a move as a growing interest in the future of these climate (non)action cases. The U.S. Supreme Court also recently rejected attempts by Republican-led states and fossil fuel industry groups to prevent the implementation of a rule that is expected to fortify the requirements to control methane emissions.
There is no denying the fact that climate change litigation is on the rise around the world, with Europe serving as a hub of sorts while its courts grapple with the dilemma of taking into consideration Scope 3 downstream emissions during the review of environmental impacts of petroleum activity. The situation in the UK is even more complex for hydrocarbon projects following a recent UK Supreme Court ruling which set a precedent as a landmark ruling that brought into play implications for contemplation of downstream GHG emissions in environmental impact assessment.
Many climate change activists do not recognize anything other than renewable energy acceleration and a fossil fuel phase-out as the right way forward to reach net zero targets. However, global energy experts argue that the energy transition process needs to be just, equitable, and affordable, thus, they reject the idea of an immediate phase-down of oil and gas. Instead, they urge the energy producers to embrace cleantech challenges and curb their greenhouse gas emissions by investing in low-carbon plays such as carbon capture utilization and storage; methane management through measurement, quantification, and mitigation; energy efficiency and resiliency; electrification of assets and production process; combination of other either less-emission intensive or zero-emission sources such as (green) hydrogen, (floating) solar/offshore wind; and renewable natural gas (RNG) and biofuels potential.
Since the role environmental considerations play in directing the shift toward certain types of energy sources has risen to the top of the list, perceptions about lower carbon fuels like LNG, which is painted as a bridge fuel to a net zero future, are prompting the growing appetite for this variant and related infrastructure such as FSRUs. As it is believed that LNG generates less GHG emissions than oil and coal, it is seen by many as the ideal fit in the global race toward more sustainable energy solutions. According to Duncan T. Munn, President of the C.D. Howe Institute, nuclear energy and liquefied natural gas are "pragmatic drivers on the road toward a low-carbon future."
While portraying reliability as a "crucial asset" in a grid that would be able to meet the growing energy demands, Munn points out the flexibility LNG offers as it can be transported more easily. He also notes that wind and solar installations generate much less energy than their rated capacities when there is no wind or sun, thus, he believes this strengthens the case for nuclear power as its reactors have the ability to operate more or less indefinitely at close to the capacity output, enabling a stable energy supply and offsetting the intermittency associated with wind and solar.
As countries do their best to navigate the delicate balance between prosperity and environmental stewardship, Munn sees a more diversified energy portfolio that includes nuclear power and LNG as the kind of "clear-eyed pragmatic approach" which in his view is needed, as these two energy sources "complement the growth of renewables by providing stability, reliability and economic opportunities during the transition to a lower-carbon future."
Given the maturity level of most fields, energy experts advise further exploration drilling and other ways of extending fields' lives to replenish the global oil and gas arsenal but urge operators to implement emissions-reducing technologies while seeking to augment production.
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? 壳牌 is closing in on its production start-up date at an offshore gas field with the jacket and topside sail-away enabling integral parts of a new offshore platform, envisioned to be powered by solar energy, to reach the installation stage.
? TechnipFMC has secured a new deal with bp for work at its sixth-operated deepwater project in a prolific high-margin basin within the U.S. Gulf of Mexico.
? McDermott International, Ltd is selling its CB&I storage business to a consortium of financial investors, led by Mason Capital Management, for $475 million, which will be used to settle debts.
? China National Offshore Oil Corp. (CNOOC) has kicked off production from an oilfield development project off the coast of China.
? Within its update on Equinor 's ongoing or recently wrapped-up projects, Norway’s Ministry of Energy has included 13 out of 19 developments in the proposed budget for next year.
? Aside from PETRONAS ' gas sales agreement with Sabah Electricity Sdn. Bhd. , the Malaysian giant will pool resources with ASEAN Centre for Energy to curtail methane emissions in the region.
? North Sea Transition Authority 's guidance aims to curb delays and tackle obstacles in merger and acquisition transactions, with the ultimate objective of securing the maximum value of petroleum while meeting the energy
? Brazil's BRAVA Energia , former 3R Petroleum , has given its blessing for the wrap-up of required procedures related to the merger of its wholly owned subsidiaries Enauta and 3R Opera??es Offshore.
? Angola is interested in setting the stage to keep its hydrocarbon exploration activity high to replenish resources and bring new oil and gas projects online while slashing its greenhouse gas (GHG) emissions and expanding its energy mix with renewables to enable greater resource and supply diversification and a just energy transition.
Diamantino Azevedo, Angola’s Minister of Mineral Resources, Oil and Gas, outlined: “The fair energy transition must safeguard the use of all existing energy sources, giving oil and gas producing countries the possibility to continue developing their resources, focusing their efforts on exploration and development activities to ensure a sustainable replenishment of reserves and the continuity of production, thus promoting their economic growth and development.”
? Nederlandse Aardolie Maatschappij (NAM), a 50/50 joint venture between 壳牌 and 埃克森美孚 , is expecting to close its exploration and gas production chapter in the North Sea after more than 60 years next year. In the meantime, ExxonMobil Benelux ’s subsidiary has taken steps to sue the Netherlands by filing a request for arbitration on September 30 under The Energy Charter Treaty (ECT) against the Dutch state with the International Centre for Settlement of Investment Disputes (ICBI), accusing the country of reneging on its contractual obligations related to the phasedown of gas extraction activities at a giant field.
ExxonMobil underlined: "It is our opinion that the previous government had no intention of reaching an amicable settlement. On several occasions, it unilaterally took measures that arbitrarily and disproportionately disadvantaged ExxonMobil as an investor. These actions have damaged our confidence in the Dutch investment climate. We ask the new government to enter into dialogue in order to find a solution that is acceptable to both parties.
"Such an arrangement would be good for the Netherlands and all those involved, including the people of Groningen. ExxonMobil hopes that an amicable settlement can be reached between the parties and looks forward to constructive agreements with the Dutch state.”
? Mellitah Oil and Gas B.V - a consortium formed by the National Oil Corporation of Libya and エニ North Africa, has launched a tender for EPCC firms experienced in offshore production of fixed platform systems for expansion of an offshore production facility offshore Libya.
? MODEC Offshore Production Systems (Singapore) / Offshore Frontier Solutions , a MODEC Group company, has teamed up with TOYO Engineering India Private Limited to launch a global capability center in India, which will focus on the topside of FPSO and FSO projects to set new standards in offshore engineering, according to Toyo Engineering Corporation .
? 康菲石油公司 has selected Sea1 Offshore 's AHTS vessels to support drilling activities related to its upcoming hydrocarbon exploration campaign off the coast of Australia next year, which will be carried out with one of Transocean 's semi-submersible rigs.
? Woodside Energy is progressing with the development of its multibillion-dollar energy project offshore Australia. The most recent milestone entails Saipem 's completion of an export trunkline installation, enabling the pre-commissioning of the trunkline in preparation for the hook-up of the subsea infrastructure to start in time for the first liquefied natural gas cargo, which is scheduled for 2026.
? While an update indicates a fire, which broke out in the engine room of an oil tanker offshore Germany, was not put out despite multiple ships fighting to extinguish it for hours to prevent a potential oil spill on the Baltic Sea coast, the German authorities did confirm the fire was largely under control and not spreading any further. The seven-member crew, evacuated and taken ashore after the fire started, was released from the hospital.
? Petrobras has hired 斯伦贝谢 ’s OneSubsea for subsea equipment work related to a deepwater project in the Campos Basin off the coast of Brazil.
? 贝克休斯 and Repsol have joined forces to develop artificial intelligence (AI) processes and workflows to boost oil and gas production.
? Norwegian Electric Systems (NES) , a subsidiary of HAV Group ASA , is in charge of a complete energy design, an integrated automation system, and its future-oriented bridge system for a field support vessel Green Yard Kleven shipyard is building for a natural gas project, operated by OMV Petrom and said to be the largest one in Romania's Black Sea.
? KBR, Inc. will handle engineering and procurement services for upgrade work connected with 壳牌 's gas development being pursued to bolster Trinidad and Tobago's LNG.
? Petrobras , 壳牌 , and CNOOC International put their signatures on concession contracts for three blocks in the Pelotas Basin off the coast of Brazil, which they won last December at a session held by ANP - Agência Nacional do Petróleo, Gás Natural e Biocombustíveis .
? Hanwha Ocean has increased its final offer by 11.67% to motivate shareholders of Dyna-Mac Engineering Services Pte Ltd to sell their shares and enable the firm to seize total control of the Singaporean FPSO firm, thanks to an offer deemed to have gone beyond previous closing share prices for the last decade.
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? A newbuild ultra-deepwater drillship recently completed updates and sea trials, thus, it set sail for Brazil, to work on its maiden offshore drilling assignment with Petrobras .
? Malaysia Marine & Heavy Engineering will convert a mobile offshore drilling unit (MODU) into a water injection facility (WIF) for use offshore Sarawak to boost reservoir pressure and oil recovery rates, while minimizing environmental impact.
? KCA Deutag has won a bundle of multimillion-dollar contracts and extensions for land and offshore drilling projects spanning across geographies: Saudi Arabia, Oman, Pakistan, Angola, and Europe.
? V?r Energi has secured the Norwegian authorities' approval to deploy one of COSL Drilling Europe’s semi-submersible rigs to spud three wells in the Barents Sea.
? Shelf Drilling 's jack-up rigs have won new and additional work assignments, expanding their drilling backlog offshore Nigeria.
? Shelf Drilling has also completed the triangular merger between its indirect subsidiary SHLF MergCo, Shelf Drilling North Sea (SDNS) as the surviving entity in the proposed business combination, and SHLF as the issuer of the merger consideration shares.
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? Woodside Energy has added a new LNG asset to its portfolio by bringing Tellurian Inc. into its fold. The company has also changed the name of the newly acquired LNG terminal in Louisiana.
? Energy Market Authority (EMA) is joining forces with Korea Gas Corporation(KOGAS) to widen their cooperation in the liquefied natural gas ecosystem.
? TotalEnergies has struck a deal with Ibaizabal Group for a new LNG bunker vessel of 18,600 cbm capacity, which could be sent to Oman to work at the French giant's development project and provide LNG to the Gulf's shipping sector.
? Burckhardt Compression will provide liquefied natural gas boil-off-gas handling compressors for eight LNG carriers built by Hanwha Ocean .
? Following the methane emissions certification of 20% U.S. natural gas production, MiQ assigned a ‘B’ grade to National Grid Grain LNG Limited , referring to it as the world's first LNG port and the first facility outside of North America to receive such a certification. Thanks to this, the European terminal's LNG buyers will have the option to pick cargoes based on methane emissions profile.
? With funding in place, Santos Ltd is ready to check off all remaining works related to a liquefied natural gas (LNG) project’s life extension in mid-2025 to begin production from its gas development project offshore Australia.
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? While disclosing that its project, which it describes as a full-scale CO2 capture, transport, and storage development in line with the international climate agreements, is getting close to the finish line, the Norwegian government confirmed plans to keep investing in the project, proposing an allocation of 2.1 billion NOK or $197.3 million in the state budget for 2025, when large part of the giant undertaking is slated to be done.
? Energistyrelsen confirmed a tender for CCS projects of DKK 28.7 billion ($4.2 billion) available for interested parties to help Denmark reach its path to climate neutrality.
? Elengy - Groupe ENGIE 's feasibility studies are being undertaken in partnership with Société du Pipeline Sud-Européen (SPSE) to look into establishing a CO2 transport project.
? 埃克森美孚 has enriched its CCS portfolio by getting its hands on over 271,000 acres of offshore CO2 storage in Texas state waters, thanks to a lease with the Texas General Land Office (GLO).
? ORLEN Upstream Norway AS , part of Poland’s ORLEN S.A. , is pulling out of the only CO2 storage exploration license in the Barents Sea, thus, Horisont Energi is looking into the best way to move forward with the project.
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