Asian Oil and Gas-March-April 2015

ASIAN OIL & GAS
March - April 2015
AOG
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Women in
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Contents
REGIONAL UPDATES
6 Briefs
28
New discoveries, leases, and development plans.

SHIPYARDS
8 New entries
EMAS AMC christens its new US$600 million vessel, and more news
from China and Korea.
GEOLOGY & GEOPHYSICS
10 Seismic roundup
Dolphin mobilizes Sanco Sword off Myanmar, and CGG heads to Vietnam.
FEATURES
12 Rigs continue to idle as Asian drilling activities decline

Audrey Raj reports on the global rig market and its effects on the Asian oil
and gas industry.
14 Standardization of SENT test method

for sour service environments
Requirements for testing facture toughness in pipelines is increasing,
a standardized SENT test methodology for pipelines in sour service
environments is being developed, Dr. Jens Petter Tronskar explains.
18 Recruiting for commissioning

of oil and gas developments
There can be a tendency to underestimate the challenge of fi nding the right
personnel for this critical stage, commissioning, of the project lifecycle,
advises Air Energis Andy Greenwood and Steve Field.
20 Spotlight Women in oil and gas engineering
30
AOG discusses the opportunities and challenges confronting women in the

energy sector with engineers from Atteris, Premier Oil, Technip, INPEX and
EMAS AMC.
GEOFOCUS: AUSTRALIA/NEW ZEALAND
26 Well integrity, from start to finish

Weatherfords Yves Daniel discusses zonal isolation technologies, including
an annulus casing packer, made for Australias coal seam gas production.
28 Championing Australias energy industry

James Parsons, Swire Oilfield Services general manager for Australasia
shares his view of the current Australian oil and gas market.
30 UWA molds next generation engineers down under

The University of Western Australia (UWA) tells us how they have been
central to the research and development underpinning the energy sector
and education of aspiring professionals in Western Australia.
PRODUCTS & TECHNOLOGY
32 Solutions
New tools and software to improve performance, production, and modeling.
CONTRACTS
Valmec Services will provide services to Origin Energys

Talinga Gas Processing Facility.
On the cover
AOG
ASIA
IL
N O
2015
- April
March
al.com
aogdigit
34 Valmecs first Talinga gas contract
AS
& G
COMPANY NEWS
35 Activity
GE opens Western Australia facility, and more news.
FACTS & FIGURES
38 Numerology
A capsule view of interesting industry statistics.
in
Women ing
er
engine
page 20
Meet the five engineers profi led in our

Women in Oil and Gas Engineering
feature by AOGs new editor Audrey
Raj. Each one comes from a different
background and job function, but all
have the same drive to work hard,
have fun, and inspire others.
20.
Read more on page 20
March April | AOG
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Editors Column
Leap of Faith
T
he global oil and gas industry over the years has witnessed SIswaran, Minister, Prime Ministers Office and Second Minister
a number of cycles and recent changes in the energy scene for Home Affairs and Second Minister for Trade and Industry,
have sent shockwaves across the globe.
Singapore.
In a meeting at the International Oil and Gas Industry
While a plunge in oil prices have led to a broad impact on
economies and businesses around the world, cheaper oil has Conference and Exhibition, he addressed how strong economic
fundamentals in Asia-Pacific, together
also provided some much-needed relief
with its rapid population growth and
to emerging Asian countries.
economic development will continue to
Increasing oil and gas consumption
We will remain a key
drive energy demand and thus expenhas made the region a predominant
region for offshore
diture on exploration and production
buyer of foreign fuel imports and paractivities.
ticularly influential in the global energy
developments with more
Therefore, we will remain a key
market.
region for offshore developments and
This trend is projected to double by
drilling activities to
our emergence of FLNG is expected to
2030 in countries like India, China,
come in Australia and
increase with rising energy demand
Japan, Thailand and Indonesia due to
to drive technological developments
declining or lack of indigenous resources
Southeast Asia this year.
across the region.
and consumption growth.
The Asia-Pacific well
Infield Systems expects significant
Singapore for instance is Asias major
capital
expenditure growth offshore
petrochemical and refining hub, but it
intervention market is
India of some 32% over the forthcomimports crude oil and natural gas beexpected to reach $1.93
ing period compa red to t he previcause it has no hydrocarbon reserves.
ous five years, which is likely to be
In the wake of the earthquake that struck
billion by 2018, up from
driven by the Dhirubhai and Krishnaoff the coast of Sendai in Japan, the
$1.1 billion in 2013.
Godavari multi-field developments.
Japanese have relied on foreign imports
Although it is a little hard to predict
to replace nuclear shortfall ever since.
what will happen next, it is not preorBetween 2000 and 2014 Indias energy
consumption doubled pushing the import bill to $120 billion and dained that low oil prices will continue to hurt the industry for
this could go up to $230 billion driven by economic growth, greater a long time.
Here to give you these updates and more, AOG will continue
industrialization and urbanization, reported The Indian Express.
While these countries, just to name a few, benefit from cheap to address these market dynamics, business-critical issues and
oil and will see a boost in GDP growth, net oil exporters like technologies that impact the oil and gas sector in Asia.
On this positive note, it gives me with great pleasure to
Malaysia and Kazakhstan could lose substantial national
welcome you to join me on this journey of knowledge-sharing
income.
Malaysias energy sector makes up for about 20% of the through this esteemed title also available online.
countrys total GDP. In its move to reduce rising national debt,
Audrey Raj
Malaysia along with Indonesia and India cut oil subsidies that
Editor
could possibly save the Malaysian government about $5.97 billion annually.
The halving of oil prices has pressured spending cuts across
the board. Now with oil producers rethinking exploration budgets, much of the focus will be on lower-cost shallow water or
mature oil fields.
Therefore, Australia and Southeast Asia could see more drilling activities this year and this could potentially increase well
intervention works in the region.
The Asia-Pacific well intervention market is expected to reach
to $1.93 billion by 2018, up from $1.1 billion in 2013, according
to Research and Markets.
Despite concerns over the impact on the oil and gas industry
of short-term global uncertainties and volatile oil prices the
long term outlook for the industry remains positive, said Mr.
April 2015
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March
April 2015
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Regional Briefs
AWE SPUDS IRWIN PROSPECT
AWE spudded the first well in its 2015
three-well onshore Perth basin drilling program, the Irwin-1, in late March.
Irwin-1 is located approximately 22.7km
east of Dongara. The exploration well
was drilled at a measured depth of 115m
and was drilling ahead in a 17.5in hole
to a planned depth of 930m in preparation for the installation of the 13 3/8in
surface casing. AWE says that the well
is designed to test the gas potential to
the east of the Senecio and Waitsia gas
fields and is targeting the Dongara and
Wagina tight sandstone formations, the
Carynginia Shale and Irwin River Coal
Measures, as well as deeper conventional targets in the Kingia and High Cliff
Sandstones.
SK INNOVATION SIGNS UP
FOR SOUTH CHINA SEA DUO
CNOOC and SK Innovation Co. entered
into two production sharing contracts
(PSCs) in the South China Sea. Blocks
04/20 and 17/03 are located in the Pearl
River Mouth basin. Block 04/20 covers a total area of 5138sq km and Block
17/03 covers a total area of 7686sq km.
Both blocks are in 50-100m water depth.
According to the terms of the PSCs, SK
will be the operator of the two blocks. SK
will cover 80% of the exploration costs.
Both parties will conduct 2D seismic
data surveys and will drill exploration
wells. Once entering the development
phase, CNOOC maintains the right to
participate in up to 60% of the working
interest in any commercial discoveries in
the blocks.
China
India
QINHUANGDAO 32-6 STARTS UP

China National Offshore Oil Corp.
(CNOOC) began production at its
Qinhuangdao 32-6 comprehensive adjustment project. The Qinhuangdao 32-6
oilfield is located at the central north of
Bohai Bay with an average water depth of
approximately 20m.
The main production facilities of
Qinhuangdao 32-6 comprehensive adjustment project include four platforms
and 99 producing wells. This project is
fully on-stream and is expected to reach
its ODP designed peak production of approximately 36,000 b/d in 2015.
CNOOC is the operator and holds 75.5%
working interest in Qinhuangdao 32-6
comprehensive adjustment project with
partner Chevron China Energy Co. (24.5%).
OILEX PLANS NEW

WELLS AT CAMBAY
Oilex Ltd. plans to drill four new wells
in the Cambay Field, located in the
State of Gujarat, India. Approved by
the Cambay Field joint venture (JV)
and the government of India, the work
program includes two firm wells and
two contingent wells. Scheduled to run
in the course of two years commencing
2015, the first well is expected to spud
late this year, subject to the finalization
of funding. Tendering activities are
currently underway. Construction of
production facilities at Cambay-73
is 50% complete and the JV plans
to commence a five well work-over
campaign to boost oil and gas production
in 2015.
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Indonesia
LION GETS TWO
SUMATRA JOINT STUDIES
Lion Energy received formal approval
from the Directorate General of Oil and
Gas (MIGAS) of the award of two separate
unconventional joint studies over two
highly prospective areas in Indonesias
North and Central Sumatra basins. In
North Sumatra, Lion will lead a joint
study covering an area of 4684sq km in the
southeast of the basin. Under an agreement Lion will operate the study with
a 55% interest; and the partners in the
conventional Bohorok PSC, which partly
overlaps the area of the unconventional
joint study, jointly have 45% interest. The
North Sumatra basin is one of the major
onshore basins in the Southeast Asian
region with over 25 Tcf of gas and over 1.3
billion bo and condensate discovered. In
Central Sumatra, Lion will conduct a joint
study over an area of 2478sq km covering
part of the Bengkalis Graben, a major oil
province in the east of the basin. Lion is
the operator of the study with 75% interest, and the conventional rights holder
in the partly overlapping area, has a 25%
interest. The Central Sumatra basin has
over 13 billion bo discovered.
Myanmar
CHEVRON, WOODSIDE
INK PSCS OFF MYANMAR
Australias Woodside Energy signed
production sharing contracts (PSCs) for
offshore blocks AD-2, AD-5, A-4 and
A-7, awarded to the company in the 2013
Myanmar Offshore Bid Round. Located in
the southern Rakhine basin, for offshore
blocks AD-5 and A-7, Woodside will hold
operated equity interests of 55% and 45%
respectively. Non-operating interests are
held by BG Exploration and Production
(Myanmar) Pte Ltd., and Myanmar
Petroleum Exploration and Production
Co. Blocks AD-2 and A-4 also located in
the northern Rakhine Basin, Woodside
will hold non-operated interests of 45%
each, while BG is the operator of both the
blocks. Myanmar Petroleum will hold
non-operating interest in block A-4.
Unocal Myanmar Offshore Co., a
Chevron subsidiary, will explore the
Rakhine basin with Myanmar Oil and
Gas Enterprise (MOGE). The new PSC
area, Block A5, lies 200km offshore
northwest of Yangon and covers more
than 10600sq km. Unocal Myanmar
will be the operator of the block with
99% interest. Royal Marine Engineering
Co., a Myanmar company, will hold
the remaining interest in the block. In

addition to Block A5, Chevron has a
28.3% non-operated interest in a PSC for
the production of natural gas from the
Yadana and Sein fields, within Blocks
M5 and M6, in the Andaman Sea.
New Zealand
MAARI MR6A WELL
WELCOMES FIRST OIL
Production from the Maari MR6A development well in Taranaki basin off New
Zealand has been brought onstream,
with an initial production rate of approximately 7800 b/d of oil. Optimal production rate will be determined after several
weeks of production history, Cue Energy
said, taking into account reservoir management considerations. Currently producing approximately 14,000 b/d of oil,
the Maari Field production commenced
in late March, from the previously undeveloped Mangahewa formation reservoir
unit within the development.
Philippines
OTTO, RED EMPEROR
ENTER SC55 DEAL
Otto Energy Philippines signed a farm-in
agreement with Red Emperor Resources
NL for a 15% working interest in SC55 off
the Philippines. C55 covers 9880sq km
and is a deepwater block in the middle
of a proven regional oil and gas fairway
that extends from the productive Borneo
offshore region in the southwest, to the
offshore Philippine production assets
northwest of Palawan. 3D seismic identified Hawkeye as a large turbidite clastic
prospect with gross prospective resource
best estimate for the well at 112 MMbbl.
Otto says that success at Hawkeye will unlock a significant new hydrocarbon play in
the deepwater Southern Palawan with material follow-up potential in the carbonate
leads and prospects, with gross prospective resource estimate of approximately 11

Tcf and about 400 MMbbl of condensate.
Russia
GAZPROM NEFT
FINDS OIL AT PRIOBSKOYE
Gazpromneft Khantos completed testing
of an initial two wells, drilled to allow
analysis of deposits in the Bazhenov
formation, in the south of the Priobskoye
oilfield. Hydraulic fracking was undertaken at both (directionally drilled)
wells, and an inflow of hydrocarbons
obtained; testing of a further two similar
wells is to be undertaken in the nearest
future. The strata lie at a depth of 2000
3000m, and the low filtration properties
(flow capacity) of the underlying geology
mean the reserves contained therein
are hard-to-recover. The Bazhenov and
Abalaksky formations are also categorized as unconventional (tight) reserves.
Vietnam
KRISENERGY ADDS VIETNAMESE
STAKE
Singapore-based KrisEnergy increased
its stake in Blocks 105 and 120 offshore
Vietnam. KrisEnergy now holds 33.33%
in each block after Neon Energy dropped
out of the joint operating agreement in
April 2014. Eni Vietnam is still the operator and holds 66.67% in each block.
Block 105-110/04 covers an area of
7192sq km and is located in the central
Song Hong basin. Water depth ranges
from 20-80m.
Block 120 covers an area of 8574sq km
off central Vietnam, overlying the Quang
Ngai Graben in the north and central
section of the contact area and passing
into the Phu Khanh basin in the southern
portion of the block. Water depths range
from 50-1100m.
Australia
PLUTO LNG BACK IN ACTION
Pluto LNG, operated by Woodside
Petroleum, commenced production following the precautionary action to shut-in
production in mid-March, after a drilling
rig drifted near the Pluto flowlines. The
submersible rig, Atwood Osprey, owned
by Atwood Oceanics Inc., parted several
mooring lines and drifted approximately
3nm from its original position during
Cyclone Olwyn. The category three cyclone
impacted the northwest coast of Australia
bringing hurricane force winds, heavy rain
and severe floodings in Perth. Despite the
temporary shutdown, Plutos production
target range of 84 -91 MMboe will remain

unchanged, the operator said. Pluto LNG is a
joint venture by Woodside Petroleum (90%),
Tokyo Gas (5%) and Kansai Electric (5%).
March April 2015 | AOG
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Shipyards
EMAS christens US$600 million vessel
Lewek Constellation. Photo from EMAS AMC.
NAM CHEONG
US$58 MILLION VESSEL SALES
Kuala Lumpur, Malaysia-based shipbuilder Nam Cheong sold two offshore
support vessels worth approximately
US$58 million. The vessels are scheduled
for delivery in 2015 and 2016.
We are delighted to kick-off 2015 with
the securing of two new contracts. With
these contracts, it brings our cumulative
order book to a robust US$460 million,
said Leong Seng Keat, chief executive officer, Nam Cheong.
KERUI DEVELOPS
FULLY HYDRAULIC DRILLING RIG
Integrated with automated wellhead
tools, fast moving capability, fully hydraulic drive and compact structure, the
fully hydraulic mobile drilling rig KY720
is made by the Kerui Group.
According to KY720 research and
development project teams, the drilling
rig adopts an innovative design of power
supply, overall structure and tool integra-
EMAS AMC, the subsea services division of Singapore listed EZRA

Holdings Ltd., officially christened the Lewek Constellation prior to its
departure to the Gulf of Mexico to commence work for Noble Energy.
The vessel was initially conceptualized in 2009 and its hull was
launched in 2012.
The Lewek Constellation measures 178.27m by 46m, and is designed to deliver complex projects in a safe, efficient and reliable
manner in water depths exceeding 3000m.
I would like to thank the many hard-working and committed
people within EMAS AMC, TRIYARDS and Huisman who have
made this achievement possible, said C.J. DCort, chief executive
officer, EMAS AMC.
The vessel currently has a backlog of projects valued at approximately US$500 million. The christening was held in Schiedam, the
Netherlands.
tion, on the basis of meeting seven international and industry design standards.
It operates on a fully hydraulic drive,
world-leading diesel engine and transfer
case gears, in addition to load sensing
system for power output and control.
The KY720 realizes high speed of the
power head, while keeping the motor
load low due to its optimized hydraulic
system. Moreover, the energy consumption is cut by 30-40% and operators
required from eight to three.
BOSKALIS INTRODUCES
NEW SEMISUB
The Dockwise vessel White Marlin was
named and christened during a festive
ceremony in Guangzhou, China. Following the ceremony, the semisubmersible
heavy transport vessel will be mobilized
to Singapore for its maiden transport of two drilling rigs for discharge
in Abu Dhabi. With a deadweight of
72,000-tonne, the White Marlins overall
length is 216m with a 63m beam.
KEPPEL FELS 100TH JACKUP RIG

Keppel FELS, a wholly owned subsidiary of Keppel Offshore & Marine, is
on track to deliver PV Drilling VI, a
KFELS B Class jackup rig, to PV Drilling Overseas (PVDO), a subsidiary of
PetroVietnam Drilling & Well Services
(PV Drilling).
The KFELS B Class rig is able to operate in water depths of up to 400ft with a
drilling depth of 30,000ft and enhanced
features like engines that meet more
stringent emission standards, increased
capacity for mud pit tanks, a secondary
tensioning system and accommodation
for 150 persons.
PV Drilling VI is PVDOs fi rst jack-up
rig, and will play an important role in
accelerating PVDOs drilling program for
South East Asia and beyond. We recognize the strength of the KFELS B Class
rigs as the three rigs that are operating
for PV Drilling have been performing
very well, said Pham Tien Dung, CEO of
PV Drilling and chairman of PVDO.
SONGA EQUINOX DELIVERY DELAYED

Semisubmersible rig Songa Equinox, managed bySonga Offshorewent
on sea trial as planned in March, but prior to the departure, the inclination test indicated a heavier than expected light unit weight.
Therefore, the rig required the installation of sponsons and blisters
as per those already installed on the companys other vessels Songa
Encourage and Songa Enabler.
Daewoo Shipbuilding Marine Engineering will do the remedial
work in Korea. The installation work will impact the delivery time of
up to four weeks. Songa Equinox was to be hired by Statoil.
Songa Equinox. Photo from Songa Offshore.
AOG | March April 2015
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Geology & Geophysics

Dolphin mobilizes Sanco Sword off Myanmar
Dolphin Geophysical mobilized its largest floating object
off the coast of Myanmar for Ophir Energy. By deploying a
3D SEISMIC BEGINS
IN VIETNAMS BLOCK 120
seismic spread of 12 streamers, 7050m in length with 150m streamer

separation, the equipment has a moving width of 1.850m and the seismic spread covering a total area of about 12sq km.
After a swift mobilization, Dolphins Sanco Sword is now in steady
production with acquisition of about 150sq km in a single day. This is
believed to be a world record for our industry and we expect Sword to
become the benchmark vessel when it comes to productivity going
forward, said Bjarne Stavenes, VP of technical at Dolphin Geophysical.
Dolphin is also delivering a complete fast track onboard processing
system, powered by the firms proprietary OpenCPS software and its
Singapore processing office, to facilitate the delivery of a complete PreStack Time Migrated (PSTM) Sharp Broadband dataset.
KrisEnergy holds a 33.33% working

interest in Block 120 and is partnered by
Eni Vietnam B.V., as the operator with
66.67% working interest.
BILBY 2D SEISMIC
The CGG Amadeus, owned by PTSC CGGV

Geophysical Survey, has commenced a
570sq km 3D seismic survey in Block 120
offshore central Vietnam. Block 120
overlies Quang Ngai Graben and Tri Ton
Horst, which covers an area of 6869sq km
with water depths ranging from 50-650m.
The survey was designed to image the
carbonate and basement sections of the
Ca Lang prospect and associated leads
on the Tri Ton Horst. It will tie into the
502sq km 3D seismic dataset previously
acquired in 2012.
In the last 14 months, we have undertaken detailed analysis of our geological
model for Block 120, incorporating the
data from the Ca Ngu-1 well, commented Chris Gibson-Robinson, KrisEnergys
director for exploration and production.
Now our attention is focused on the Ca
Lang area and we look forward to being
able to more clearly map and further derisk the prospect, which we believe has
a high chance of intersecting hydrocarbons in multiple objectives.
10 AOG
SURVEY MOVES FORWARD

The Bilby non-exclusive 2D seismic survey in the Bedout Sub-basin and Broome
platform in Western Australia is progressing as planned, according to BGP
and Searcher Seismic.
The survey has been designed to
provide a grid of modern, high quality
data to help identify prospective structural and stratigraphic trends that can be
used for regional evaluations and future
detailed seismic survey design. It will
comprise of approximately 12,300km of
2D long-offset, high resolution broadband
data over 2x4, 4x8 and 8x8 km grids.
Using Sercel Sentinel Solid Streamer
technology, Bolt Source equipment and
continuous recording, the survey will
be acquired by the BGP Explorer, while
DownUnder GeoSolutions will conduct
the seismic data processing.
Deliverables will initially be provided
through a DUG Broad PSTM flow to

produce the fi nal data, with delivery
expected in June 2015.
Substantial potential appears to exist
not only in and around the Phoenix
South area, but up-dip on the flanks of
the basin, where the results of Keraudren-1 demonstrate significantly better
quality reservoirs exist within the
Triassic sediments, said Rachel Masters,
global sales manager for Searcher.
The results also highlight the potential for oil to migrate up onto the adjacent
Broome Platform into accumulations analogous to the Stag, Gwydion and Cornea fields
elsewhere in the region, said Masters.
GARDLINE CGG WINS

GIPPSLAND 2D SURVEY DEAL
Gardline CGG has been selected by
Geoscience Australia to acquire the
Gippsland 2D Infill marine seismic survey offshore Victoria in Australia.
The Duke survey vessel, owned and
operated by the Singapore-based fi rm, is
scheduled to begin work on the project
in early April.
The survey will cover approximately
800km in the Gippsland basin. An additional bathymetric profiling survey will
also be undertaken to infill between seismic lines at the end of the program. The
Gippsland basin, situated in southeastern
Australia about 200km east of the city
of Melbourne, holds approximately 400
MMbbl of liquids and 6 Tcf of gas. The 2D
Infill survey is part of the National CO2
Infrastructure Plan to aid in the identification of potential sites suitable for the longterm storage of CO2 in Australia.
| March April 2015
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HOW DO YOU BRING

CLARITY TO WELL
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extending well life, maximizing well performance
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Rigs continue to idle as

Asian drilling activities decline
Audrey Raj reports on the global rig market and its
effects on the Asian oil and gas industry.
n the wake of tumbling oil prices, offshore drilling contractors are finding it a challenge to secure new contracts, as
major oil producers cut exploration spending.
In 2015, BP plans to reduce exploration expenditure and
postpone marginal projects in the upstream, and not advance
selected projects in the downstream and other areas, the company said in a statement.
As a result, the firms organic capital expenditure in 2015 is
expected to total around US$20 billion, significantly lower than
previous guidance of $24-26 billion. Total
organic capital expenditure in 2014 was
$22.9 billion, lower than initial guidance of
$24-25 billion.
Similarly, along with Shell and Chevron
announcing spending cuts, Total too revealed its cost reduction guidance in its 4Q
and full-year 2014 results. Total plans to
lower its organic investments by more than
10%, from $26.4 billion in 2014 to $23-24
billion in 2015. The exploration budget has
been reduced by about 30%, to $1.9 billion
in 2015.
Moreover, according to The Malaysian
Reserve, the countrys state-owned oil
and gas company Petronas is taking steps
to reduce its planned capital investments and operating
expenditure, in 2015, but declined to disclose the scale of
the cut.
With operators announcing budget cuts, concerns about
drilling contractors ability to put their most expensive assets
to use has become a global topic of discussion.
With companies are moving swiftly to cut exploration expenditure versus 2014 levels, Wood Mackenzies principal analyst
for Asia-Pacific upstream research, Angus Rodger said, there
could be less high-cost, high-risk frontier drilling in remote or
new areas, such as the Browse basin in Australia or Indonesian
deepwater basins.
Companies will focus their attention is infrastructure-led
exploration, lower-cost shallow or mature areas and appraisals on existing discoveries, he says. Australia and Southeast
Asia should therefore see more drilling activity in 2015 from
the lower-cost jackup side of the market, rather than the higher
cost deepwater drillship segment.
Global drilling activities

According to Douglas-Westwood, there are still plenty of offshore wells to be drilled, if the 2015 oil prices average between
$50-70/bbl, but companies in the deepwater drilling market
may continue to take a hit.
Increasing shallow water explorations in countries like
Malaysia and Indonesia could see some increase in drilling activities, while South Asian countries will experience a decline.
However, in the South Pacific, Australia is on track to take over
from Qatar as the worlds leading liquefied
natural gas (LNG) producer, despite struggling with rising project costs and high labor
rates. About 84% of the regions 285 wells
will be in Australia.
Although overall well numbers dip in
2015, Wood Mackenzie says drilling activity
in 2016 is set to recover as many explorers
seize chance to drill at lower costs.
Out of the
182 rigs in
Southeast Asia,
only 83 are
Active rig counts

The Baker Hughes Rotary Rig Counts for
February 2015 showed that the worldwide
rig count was 2986, down 750 from the 3736
counted in February 2014.
The average Asia Pacific rig count for
February 2015 was 240, down 19 from the 259 counted in
February 2014.
The average Asia Pacific offshore rig count was 104, down 15
from the 119 counted in February 2014. Land rigs totaled 136
in February 2015, down four from the 140 counted same month
last year.
The Baker Hughes Rotary Rig Counts are the number of drilling rigs actively exploring for or developing oil or natural gas
in the US, Asia Pacific, Europe and international markets.
Moreover, out of the 182 rigs in Southeast Asia, only 83 are in
service, reported the BBC in its Asia Business report. Globally
an estimated 200 rigs are coming into operation the next six
years; and an older rig left to idle can cost approximately
$12,000 to sit cold stacked
in service.
12 AOG
Cost control
Downward pressure on rig rates for new contracts combined
with a rig surplus means drilling contractors inevitably have to
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Offshore rig. Photo from iStock.
evolve their businesses to cope with the downturn, Rodger said.

The first move is to cut internal costs, which often includes
laying-off non-core or support staff. At the same time, we are
also seeing an increase in the number of rigs being cold stacked
or scrapped, he says.
On the other hand, a lower oil price does provide some
benefit. Meaning lower fuel costs should flow though to lower
logistics costs, plus a previous shortage of skilled staff and a
subsequent increase in wages has now evaporated, he added.
Transocean and Hercules Offshore are expected to scrap the
most vessels, according to Bloomberg Intelligence. Hercules
Offshore has seven shallow-water rigs, all in the Gulf of
Mexico, that have been cold-stacked for an average of five years.
As AOG goes to press, Transocean said it plans to scrap
18lower-specification deepwater and midwater rigs. Some of
those rigs include: Sedco 710, Sovereign Explorer, Sedco 700,
Sedco 601, J.W. McLean, GSF Arctic I, Falcon 100, Sedneth 701,
Sedco 703, Sedco 709, and C. K. Rhein, Jr.
Similarly, Diamond Offshore Drilling plans to retire and
scrap six of its mid-water semisubmersible rigs, the company
said in October 2014.
The retired units include theOcean Epoch,OceanNew
EraandOcean Whittington, which had been cold-stacked, and
theOceanConcordandOcean Yatzy, which are idle in Brazil.
The sixth unit, theOcean Winner, will be retired and scrapped

upon completion of its current contract term inBrazil,
Diamond Offshore said at the time of the announcement.
Although some contractors are scrapping older units within
their fleet, this alone will not be enough to balance the market,
Rodger said.
For that to happen you need both an uptick in demand, and
for many of the existing rigs, like floaters, jackups or drillships
under construction, to have their deliveries either deferred or
cancelled altogether. We are seeing activity-gathering pace in
this latter area, as companies are seeking the deferral or cancellation of newbuild rigs.
It is also worth noting that the rigs being earmarked for
scrap are the older, cheaper units, leaving a core of the remaining fleet that is higher-cost with advance specifications. These
units are, however, those that may be less in demand in 2015,
he concluded.
Singapores ASL Marine disclosed that a client backed out of
taking delivery of two offshore support vessels. South Korean
shipbuilders like Hyundai Heavy Industries and Samsung
have been hit hard coping with falling new orders.
Hyundai posted an accumulated operating loss of 3.2 trillion
won (US$2.8 billion) in 2014, while Samsung only secured $7.3
billion of new orders, falling short of its $15 billion target. AOG
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Standardization
of SENT test method for
sour service environments
Requirements for testing facture toughness in pipelines is increasing, as more

and more are transporting sour gas and liquids. A standardized SENT test
methodology specifically for pipelines in sour service environments is being
developed to get the testing right. Dr. Jens Petter Tronskar explains.
Figure 1: The SENT specimen (as compared to the higher constraint SENB specimen) is designed to give a crack tip constraint
close to that of a pipe with a flaw. Images from DNV GL.
14 AOG
ncreasing numbers of sour oil and gas producing wells

are going to be encountered in many regions of the world,
in particular, the Middle East and the Commonwealth of
Independent States.
The presence of sour service fluids i.e. those containing
wet H2S, often in combination with various levels of CO2 in
high-pressure and high-temperature (HPHT) locations, not
only causes deterioration to pipelines, but in case of leaks and
pipeline ruptures are extremely toxic and represent high risk to
the health and safety of personnel.
Sour service also presents a significant demand on the
performance of the pipeline material in terms of fracture
toughness. The detrimental effects of sour service can
range from small pinhole leaks to catastrophic failure in
pipelines.
Currently, there are no guidelines for establishing the
fracture toughness of pipeline material through single edge
notched tensile (SENT) testing in sour service environments.
| March April 2015
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A Joint Industry Project by DNV GL has been launched by

the Singapore Deepwater Technology Centre and the companys laboratories in Singapore and Columbus, Ohio, to
address this gap in knowledge of influence of environmental
parameters and improve understanding in order to pursue
the development of standardized guidelines.
over the past 8-10 years. A SENT specimen is designed to provide a crack tip constraint similar to that of an actual pipe in
bending containing a flaw (see fig. 1) and as per DNV-RP-F108
allows for realistic crack depths of a/W = 0.2-0.5. The DNVOS-F101 (2013)/Appendix A allows SENT testing for operation
environments (see fig. 2).
In a sour environment, however, results are dependent on
Hostile complexities
numerous environmental and test parameters that influence
SENT testing has been applied for the characterization of
fracture performance, which can be critical for sour service
girth welds and analysis of realistic crack depths in pipelines
testing. Neither DNV-OS-F101 nor DNV-RP-F108 currently
provide detailed guidance on how to determine
the fracture toughness of steel components for
assessing flaws exposed directly or indirectly to a
hydrogen charging source.
DNV GL has carried out significant research
in this area at its laboratories in Singapore and
Columbus. A pipe material and weld performing
well in air may exhibit drastically reduced fracture toughness and resistance in a sour environment. In general, the fracture toughness tends
to decrease with increased H2S concentration
(partial pressure of H2S) and decreased loading or
strain rate.
Fracture toughness is a critical input parameter for engineering critical assessment (ECA) of
planar (crack-like) fl aws. The presence of hydrogen in steel can lead to a significant reduction in
fracture toughness due to its embrittling effects;
such a reduction can have a significant influence
on the fl aw tolerance of hydrogen-containing
Figure 2: SENT (Single Edge Notched Tension) specimen and the relationship
components. In some cases, this may result in
between flaw orientation and height in the pipe and the crack orientation and
maximum tolerable fl aw sizes being smaller
size in the specimen.
than would be accepted by normal workmanship criteria in codes such as DNV OS-F101 or
API1104.
Fracture toughness behavior in sour service is
predominantly an effect of hydrogen diffusion,
causing hydrogen embrittlement. Through detailed experiments and analysis, key parameters
known to influence fracture toughness test results will be better understood. A standardized
approach to performing SENT tests on C-Mn
steel in sour environments would also provide
more reliable and consistent results and thus the
derivation of realistic fl aw acceptance criteria
Figure 3: Performing diffusible hydrogen studies using Hydrogen Permeation
for sour service flowlines and risers in an ECA.
Cell as per ASTM G148 (left) and Bruker G4 Phoenix diffusible hydrogen analyzer (right).
Figure 4: Testing of both SENT and SENB specimens with similar a/W ratios
of 0.2 of the same base material of the X65 pipeline steel under rising load
conditions.
16 AOG
A collaborative approach
DNV GL is launching a joint industry project
(JIP) to standardize SENT testing for sour service
environments. By using different SENT test
methods already developed in its offices and
laboratories in Singapore and Columbus, the
company aims to validate different SENT test
methodologies for pipeline steels in sour service environments. This will be followed by the
provision of guidelines on how to establish the
fracture resistance curves (CTOD/J R-curve) for
pipelines operating in sour service environments
as well as for deriving the CTOD/J corresponding
to crack initiation.
The company currently has an ongoing JIP at
| March April 2015
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Columbus laboratory to develop best practice guidelines for

performing sour service ECA, scheduled for completion in
December 2015. This project includes fatigue crack growth rate
and fracture toughness tests conducted in a wide range of sour
environments. It is expected that the results will complement
the new JIP to develop a sour service SENT methodology.
The project will run for two years in three phases and will
initially study the key test parameters and evaluate various
test methods before establishing a guideline for SENT testing
in sour service environments. A number of industry sponsors,
including an oil and gas company, contractors and pipe mills
are involved.
The first phase of the project will evaluate results of recent
studies and the experience of SENT testing in sour environments to ascertain the current knowledge gaps and propose a
detailed work scope. This will include a review of the loading
method, K-rate, crack depth, soaking duration, pre-loading,
etc. The results are expected to provide an improved understanding of how the test techniques and test parameters
will influence fracture toughness in sour service. This will
include:
Effect of notch depth; comparison between a/W = 0.2 and 0.5
(as per validity limits in DNV-RP-F108)
Effect of loading rate; test with 3-4 different stress intensity
increase rates
Hydrogen diffusible studies for understanding soaking time
required prior to testing (see Fig. 3)
Constraint effects; comparison between SENT and single end
notched beam (SENB) tests (see Fig. 4)
The Phase I test matrix will incorporate at least two test

methods, while fracture resistance curves and critical fracture
toughness will be reported.
Following Phase I, Phase II will perform a detailed study of
other parameters and methods. Test variables might include
(but are not limited to): pre-loading methods, additional sour
environments, materials, microstructures, and methods for assessing internal surface, embedded flaws and external flaws.
A standardized SENT test methodology in sour service environments will be proposed in Phase III, while Phase IV will
involve the development of a DNV GL guideline and potentially
provide input to future revisions of DNV GL OS-F101 Appendix
A for Engineering Critical Assessments of pipeline girth welds
exposed to sour service environments. AOG
Jens P. Tronskar is vice president and chief
technology officer for DNV GLs Deepwater
Technology Centre in Singapore. He has
more than 35 years experience in materials
technology research, failure investigations
and deterministic/probabilistic fracture
mechanics analyses/Fitness-For-Service
analyses of structural and piping/process
components and pipelines for the offshore and onshore oil and
gas industry. He has a MSc degree in Materials Physics and
Physical Metallurgy from the Technical University of Norway
(NTH) and a PhD from the National University (NUS) of
Singapore in Fracture Mechanics applied to floating production,
storage and offloading (FPSO) vessels and ships.
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S+C Subsea Ad_032015.indd 1
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3/23/15 9:31 AM
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Recruiting
for commissioning of oil

and gas developments
With first oil the primary target of the commissioning phase, there can be a
tendency to underestimate the challenge of finding the right personnel and
then mobilizing them safely and compliantly for this critical stage of the project
lifecycle, advises Air Energis Andy Greenwood and Steve Field.
ommissioning and planning are essential elements in

successfully handing over assets into production on
time. There are huge penalties involved for the contracted parties should delivery deadlines be missed and a project fall behind schedule. Yet it is often the case that commissioning is not afforded the same level of detail as the design,
construction and production phases of a project.
Certainly, if a project has been planned and constructed
correctly for the operating environment, then the equipment
and facilities it comprises should function as intended. But
commissioning tends to be undervalued in scenarios where the
expectation is that it has been done correctly, and that everything will run smoothly as a result.
The success of any commissioning project can be attributed
to a single factor its workforce. Having the correct personnel (not only experienced but with the right attributes) is not
always the cheapest option, but the potential increased cost of
securing a talented workforce pays dividends when minimizing risk around schedule delays or disruption.
For example, South Koreas shipyards employ hundreds of thousands of people at any one time. Given the complex nature of some
of mega projects currently underway, operators must attract world
expertise to South Korea to ensure that their projects are being
delivered to the highest standard and, crucially, on schedule.
Meticulous planning reduces the risk of things going wrong.
As such, it follows that with poor planning, there is greater
chance for risk. Commissioning can, therefore, be likened to
taking out an insurance policy, where investing in the best talent available at the outset can see true value coming to the fore
if and when issues arise.
Early stage recruitment
It is the responsibility of the commissioning manager to organize,
plan and manage a team for timely execution of commissioning
activities as per the project and contract requirements. The key is
bringing in the right person for the right job at the right time.
18 AOG
The commissioning manager must be appointed at an early

project stage to look at how the development will be delivered
from an operational perspective and provide guidance on timeframes for the commissioning scope of work. Engaging them prior
to the onset of commissioning can prove invaluable especially
when the person is involved in final design, hazard and operability (HAZOP) reviews. Ideally, they will have the overall knowledge
of both construction and commissioning processes and activities.
For expatriates coming to perform a managerial role in one
of South Koreas projects, there are several challenges. They
need to be skilled at implementing strong processes with many
checkpoints all the way through the project to ensure that
what they have communicated to their teams is understood
and followed to the letter. With language barriers it is easy for
misunderstandings to occur.
The commissioning manager will work closely with construction and design functions, a particularly important approach because design engineers spend little time onsite. Those
involved with commissioning bring the practical experience of
running the equipment together as an operational unit.
Once commissioning starts to gain momentum, the project sees
significant ramp-up. There could be one commissioning manager,
three lead engineers, and eight engineers beneath them responsible for recruiting some 80-100 technicians in total. For South
Koreas complex projects the requirements of the management
team can be significant, and will often be managers overseeing
other managers.
Working back
From the outset, it is vital to obtain a full understanding of the
workforce requirement and work back to ensure the necessary
resources can be mobilized on time. Key workforce considerations in this phase include the skill sets required, the location
of the project, and the type of project being undertaken.
This can prove one of the most challenging aspects of commissioning. For example, if an operator needs new recruits to start in
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lengths to ensure that the corporate

health and safety specifications of their
clients are mirrored in the contracts
signed by candidates. They might also
offer full private medical cover, which
extends to repatriation or medivac
situations if necessary in hardship locations. This provides assurance to both
the operator and the individual that
there are systems in place should they
need to be evacuated quickly.
Retention bonus
Given that commissioning projects
run to an invariably tight timeframe,
knowledge continuation is vital. For
example, where a team of ten has
worked on a vessel for many months,
they will have an excellent knowledge
of exactly how it operates and all its
nuances. Should those ten people be
lost to another project, this is guaranEarly planning is crucial to the successful completion of a
teed to have a knock-on effect.
projects commissioning phase. Photo from Shutterstock
Nevertheless, a high rate of retention can be achieved by maintaining
regular contact with the workforce and
June, and the development is in a country where the visa process
addressing any issues they have at an early stage. In addition,
takes a month to complete, then CVs would need to be collated,
they should be engaged on a competitive rate from the outset, and
reviewed and shortlisted by the commissioning management
incentivized by building an attractive package of completion and
team mid-way through January, enabling the interview and canretention bonuses. These must be considered carefully, with each
didate selection process to be completed by February. This will
bonus structured in a way to meet key business drivers.
then leave sufficient time for the necessary onboarding processes.
Getting these resources to the required locations safely, and
Consultative approach
Commissioning is a critical phase in the lifecycle of oil and gas
determining the best approach to ensure compliance with local
projects. It is also arguably the most high profile, since it is the
tax laws, are key challenges. Therefore, it is essential to take
penultimate step to first oil. It is therefore important to work
ownership of the global mobility issues because getting the
with commissioning teams that truly understand the full range
right people to the project location is by no means straightforof commissioning processes and procedures, and the factors
ward. The question of how you get people there, how you look
that make the delivery of a project successful.
after them, and who is really responsible should be a top priorLikewise, working with a specialist provider of workforce
ity especially in a country such as South Korea.
solutions with access to a trusted network of professionals and
Clear processes
a track record of both successful deliveries and high retention
Commissioning requirements differ by project depending
rates, can help operators mitigate workforce related risk and
on finances available, the cost and difficulty of the commismaximize return on investment at the commissioning phase.
Crucially, a consultative approach must be adopted, whereby
sioning phase itself, and the type of project (onshore, offshore,
the requirements are fully understood and guidance given on
conventional, or unconventional). Having proper plans and
how best to deliver them. Resourcing of the commissioning phase
procedures in place early enough can eliminate a lot of the risk
must therefore be an integral part of the overall project plan,
faced. Experienced leadership, project procedures and plans
rather than being planned in isolation. Furthermore, its not just a
are paramount for the safe and cost effective delivery of any
question of hiring people in a timely manner, but bringing in the
project. Laid back will never deliver safely, or on schedule.
right candidates for the right jobs at the right time. AOG
This is one of the reasons why the majority of operators
engage a specialist workforce solutions provider under a prime
Andy Greenwood joined Air Energi in 2010, establishing a new
vendor agreement to manage the complexities of resourcing the
division, specializing in the recruitment and deployment of comcommissioning phase.
missioning and completions specialists across the UK, Europe
Ensuring compliance with local laws requires clear and
and Africa.In 2013, Greenwood became recruitment manager for
well-defined processes. When arranging visas for countries
Europe and Africa, tasked with ensuring delivery against regional
such as Malaysia or Singapore for example, medicals and inoculations are required. In locations such as these, meet and greet and global account while developing Air Energis contract recruitment team across the region.
services will be necessary to comply with operators corporate
policies on health and safety, and security of personnel.
Safety remains the top priority for both workforce specialSteve Field has over 20 years experience delivering global manists and operators. Some recruitment specialists will go to great
power solutions to major operators and EPCM consultants.
March April | AOG
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Spotlight
Women in oil
and gas engineering
AOG discusses the opportunities and challenges confronting women in
the energy sector with engineers from Atteris, Premier Oil, Technip,
INPEX and EMAS AMC.
By Audrey Raj
ith females becoming more present in occu-
Challenge by Air Energi and OilCareers.com showed,
pations that have been traditionally oriented
the Asia-Pacific region in particular has seen a decline
towards men, long gone are the days where
in the number of women taking up engineering for
regular office positions are for the career-minded women.
either education or employment, as opposed to other
The oil and gas sector is one to take note. Although only a small
regions such as Europe and North America.
percentage of jobs are filled by women, research suggests the
There was a shortage of female role models from
number of females joining the energy workforce has increased
the top and a lack of encouragement for more young
over the years.
women to take up Science, Technology, Engineering and
The session Empowering Women in Oil and Gas Industry
Mathematics (STEM) subjects in higher education, the research
topped the agenda at the 8th International Petroleum
revealed.
Technology Conference (IPTC), held in Kuala Lumpur, Malaysia,
To help better understand the opportunities and challenges
last December.
confronting women in the energy sector, we chatted with five
The meeting outlined the opportunities and challenges for
female engineers from Atteris, Premier Oil, Technip, INPEX and
females in petroleum engineering, plus addressed how a lot of
EMAS AMC, and this is what they had to say.
progress had to be made to increase larger minority presence in

the industry.
According to the Global Diversity and Inclusion Report, a study
conducted by British Petroleum (BP) and Rigzone, examining
female representation from the perspective of 3,000 global
oil and gas professionals, showed that an increasing number
of women are taking advantage of opportunities in the energy
industry.
While 72% believed the oil and gas remains a male-dominated
industry, and there is still a lot of progress to be made, the
majority of energy professionals said it was important for the
industry to ensure it is attractive to women. This finding is
particularly relevant given nearly nine out of ten survey respondents were male.
However, the survey Women in Oil & Gas: The Diversity
20 AOG
Allison
Selman
Brownfield Team Leader,
Atteris
Graduated from the
University of Western
Australia with a bachelor of commerce and
a bachelor of engineering (Materials), Allison
Selmans career spans
across the mining and
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Akmar Nazari on Technips state-of-the-art pipelay vessel, Deep Energy.

Photo from Akmar Nazari.
energy sectors in Australia, Indonesia and Bangkok. Having

previously specialized in materials, design and pipeline engineering, she has worked with Transfield, J P Kenny, IONIK Consulting,
Wood Group Kenny and CUEL, before joining Atteris as brownfield team leader. Here, Allison leads a team of engineers who
provide pipeline integrity management engineering solutions.
Why did you choose to pursue a career in the oil and gas
industry?
To be honest, I did not choose the oil and gas engineering as
a career path; nor did I realize it was a career path during university. I started my professional career as a materials engineer
in the mining industry. The opportunity to pursue a career in
pipeline engineering presented itself through my professional
network and appeared to be technically interesting, so I took
the chance to explore this path. I am very glad to have made
this choice as I enjoy the work and the industry.
Whats your take on women being under-represented in the
field of engineering?
There is an under-representation of women in the field
of engineering in the majority of regions around the world.
This is not the case in some European countries. I believe it
is a combination of cultural influence, lack of education and
a misperception of the profession in general. We are given
the perception through the media and general society that
engineering is a male-dominated, physical profession, thus

not many females are encouraged to pursue engineering as a
career option.
Due to the huge gender gap in this field, was it difficult for you
to work as a team?
The impact of gender on teamwork has both positive and
negative aspects. It can be challenging in terms of learning that
different people communicate differently this is not specifically due to gender and learning how to communicate effectively with different individuals. The impact of gender on the
ability to work as a team would be more evident in work places
that generally do not support diversity. I would encourage
individuals to work on communication and leadership skills
in general; to understand that there are differences that result
from diverse backgrounds.
What are some of the challenges for women working offshore?
One of the biggest challenges for women is obtaining on-site
practical experience. This is due to limited accommodation
facilities and work practices. This limits the opportunities that
are available for female engineers to go offshore and gain invaluable experience on-site. The other biggest challenge is with
establishing oneself in a male-dominated field; in particular if
working with certain cultures that do not support equal opportunities for females. At the end of the day, engineering is a great
profession where a strong career can be built and immense job
satisfaction can be obtained.
March April | AOG
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21
4/2/15 12:10 PM
Sylvana Liauw
Vivia Bora
Project Engineer, EMAS

AMC
Senior Subsea Pipeline

Engineer, Premier Oil
A graduate from the
A chartered engineer with
National University of
over 15 years experience
Singapore, Sylvana Liauw
in pipeline engineering,
completed her civil engi-
Vivia Bora has a bachelor
neering degree in 2007.
in civil engineering from
She was first introduced
Universitas Hasanuddin
to the energy sector dur-
Indonesia; and a master in
ing internship, from which
project management from
she grew an interest for
the University of New South
building things in massive
Wales (UNSW) Australia. She has previously held positions with
scales. Before joining EMAS
Pegasus Asia Pacific, BP West Java, PT Amec Berca Indonesia
AMC as project engineer, Sylvana worked as junior engineer with
and JP Kenny, where she has worked on pipeline projects with
Saipem Singapore specializing in pipeline engineering. In her job,
international companies like Total Indonesie, Pertamina, China
she says, no two projects are identical and every project is a differ-
National Offshore Oil Corp., Petrofac and more. Currently, a
ent journey with unique challenges.
senior engineer with Premier Oil, the mother of two is thankful to

be part of a supportive team.
Why is there such a small percentage of women in oil and gas

engineering?
My personal opinion is perhaps the lack of exposure of how
wide the industry is, with extensive opportunities for everyone. Another reason could also be because of how the industry
is portrayed. In the media, the oil and gas industry is associated with remote and harsh environment away from home,
highly hazardous works, or perceived as male-dominated. But
I have met many prominent women in the oil and gas industry,
which means that the percentage has increased over time.
What are some of the challenges for women in the oil and gas
industry?
In some aspects the nature of the industry is masculine.
You work under the hot sun, away from home, with machines,
fabrication and construction, amongst many others. Naturally,
in this industry, or even other industries, there are people who
still adopt the old school mentality who perceive women as less
competent. Sometimes women have to prove themselves harder
to be respected at work. But I have been fortunate. In EMAS, I
work with people who look beyond gender, and I have seen many
female engineers whom people look up to. It is not easy, but not
impossible. The biggest challenge is for ourselves to deal with.
Whats the most fun thing about your job?
Many people think engineering is mundane with numbers,
studies and the reports that we have to do. But I am always
captivated with the mega-results in EMAS. It is about the
infrastructure that we build, the oil and gas exported to shore
for our daily needs, the offshore challenges in the middle of the
sea and the solutions we create for the never-been-done before
it is fascinating.
What advice doyou have for would-be female engineers?
Engineers build things, whether it is offshore construction
like what I do, airplanes or ships like the mechanical or electrical engineers do, or even coding like the software engineers
do. Every job has challenges on their own like the nature of the
work or the people you work with. But if the job excites you
and you think you can create an impact, lets not be discouraged by what they say about women in engineering.
22 AOG
Why did you choose to be an engineer in the oil and gas industry?
The oil and gas chose me, actually. Upon graduation, I
worked in the mining industry for two years, before gaining
an opportunity from AusAID to pursue a masters degree in
Australia. Shortly after graduation I got a job with JPKenny, stationed in Perth, Australia. That was my introduction into the
oil and gas industry. I remember at that time I was mentored
by two women, who inspired me to see that females can do as
good as males in the energy sector. I like the industry because
its challenging and pays well.
How do you juggle motherhood and work?
My children now attend school two-thirds of the day, while
I am at work. I have home assistants, too. My typical day starts
early and doesnt necessarily end early. But my manager is very
flexible, meaning I do get to attend to my childrens needs, for
example school meetings, etc. I work full speed while at work
and this is the key to managing time and expectation. From 5
p.m. to 8 p.m., I spend time with the kids, prepare dinner, help
with homework, sit in music practices and read to them. Once
they go to bed, I get time for myself. When I go away for business and offshore trips, my husband helps out.
What is it like to work on a rig and/or vessel?
It is like working in a small environment with limited choice
of things to do. It is an exciting experience to be onboard,
completing assigned tasks, but it can get to you after a few
weeks. The feeling of wanting to go home can grow. One of
the demands working onboard a vessel is team work. The best
thing to do is to think how we can finish the job collaboratively
in the best and quickest possible time. Then we can all go home
to our loved ones.
How can the energy industry attract more females to the
workforce?
There is still a level of underrepresentation of women in engineering positions. For example, when girls finish high school,
very few consider to pursue a career in engineering. They are not
made aware from a young age of the career prospects for females
in the field, regardless of its gender domination. Unfortunately,
| March April 2015
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marginalization issues still exist in this male dominated sector,

and such issues too contribute to the reluctance of females choosing to pursue engineering. Once we overcome this, I believe our
industry will move forward more quickly. There has been issues
that women are not paid as well as males engineers, and this is
not particularly true. At least based on my experience.
Balsam
Sabiry
Graduate Instrument and
Control Engineer, INPEX
Balsam Sabiry completed
a bachelor in mathematical science from AlMustansiriyah University
in Iraq, and a subsequent
bachelor degree and graduate certificate in process
instrumentation and control
engineering from the University of Western Australia. Since completing her studies she joined INPEX as graduate instrument and
control engineer, currently working on the Ichthys LNG project
together with the operations engineering team.
Why did you choose to be an engineer in the oil and gas
industry?
A career in the oil and gas industry was a very appealing
choice for me because of the diversity within the engineering
teams, the multitude of disciplines, engineering ingenuity and
creativity, global and unique projects, and at times an extremely challenging work environment. I believe that the multi
-disciplinary layers and diversity of teams provide multitude of
choices and opportunities for women.
Why is there such a small percentage of women in oil and gas
engineering?
In general, the number of women practicing engineering is
low because many believe the profession is a male-only profession. I believe that in some cases women engineers are not
given the opportunity or considered for roles in this industry
because most oil and gas projects are predominately located
offshore and in remote areas. This, too, makes it less appealing
for them, particularly those with families.
Were you able to find female mentors at work?
For me finding a mentor was never an issue. I am fortunate
to have a female mentor, moreover my mentor is my aunt who
is also an engineer. I also have two other male mentors and our
mentoring relationship is as valuable and rewarding. I believe
that the multi -disciplinary layers and team diversity provides
multitude of choices and opportunities for women.
What would you tell fresh graduates seeking work in oil and gas?
A career in the oil and gas industry is a very rewarding
experience. You will get to witness and be part of the marvels
and ingenuity of extracting oil and gas from the bottoms of the
oceans as well as the depths of the deserts. Women too have
opportunities to progress into leadership roles in the energy
sector, just like any other engineering discipline.
24 AOG
Akmar
Nazari
Project and
Senior Rigid
Pipeline Engineer,
Technip
Currently based
in Oslo, Norway,
working for Technip
as project and senior
rigid pipeline engineer, Akmar Nazari is from Malaysia. She has
over eight years oil and gas experience. Prior to this she was
with Worley Parson as pipeline engineer and ROSEN as pipeline
analyst. Akmar graduated with a bachelor in chemistry from
Universiti Sains Malaysia, before pursuing a post graduate diploma in chemical and process engineering, followed by a master in
science in pipeline engineering from the University of Newcastle.
What attracted you to the oil and gas industry?
I always knew I wanted to be in this industry. My fathers
company does subcontracting works for operators in Malaysia,
mostly dealing with piping works. Having some insight into
his work sort of inspired me to explore the available options for
me. My time at Newcastle University exposed me to pipeline
engineering, so I pursued pipeline engineering upon completion of my first course.
What is it like to work offshore?
Its tough working offshore for an extended period, knowing you have to work for 12 hours per shift. Stress, long hours
and sometimes the weather can easily get to you. Of course,
people onboard the vessels, from the captains to the mess boys,
are supportive and nice. And the support that we receive from
people onshore is good, too. But, nothing beats the feeling
when everything goes really well and you go home for a welldeserved rest.
What makes the oil and gas pipeline sector a good career path
for women?
For pipeline engineering, as there are not too many pipeline
engineers in the industry, engineers are always sought, regardless of their gender. Pipeline engineering has a few different
fields of work, such as design, installation and maintenance/integrity work. The fact that you can change your field of work to
suit your situation gives you flexibility without having to compromise skills or experiences. For example, should you need
to focus on your family more; you can always opt to do design
work, which will not require you to go offshore as frequently.
With more experience one can opt to do more management
work for the company, too.
What advice do you have for female students considering pipeline engineering?
Dont let the word pipeline intimidate you. Pipeline engineering is just like any other line of engineering. Just because
you dont hear it as frequently as civil or mechanical engineering,
it doesnt mean that its not important and not as interesting. In
fact, I feel pipeline engineering is more interesting as it is a combination of civil engineering, geotechnical engineering, ocean
engineering, mechanical engineering and process engineering. If
you like challenges, then this line of work is for you. AOG
| March April 2015
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BUILT BY INNOVATION.
LED BY KNOWLEDGE.
POWERED BY YOU.
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AOG_0415_Ads.indd
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4/2/15 9:52
1/20/15
3:57 AM
PM
GEOFOCUS AUSTRALIA/NEW ZEALAND
Well Integrity,
from start to finish
Weatherfords Yves Daniel
discusses zonal isolation
technologies, including an
annulus casing packer, made
for Australias coal seam gas
production
ustralia has long been a leading oil and gas

producer thanks to vast reserves off its western
shores. The last two decades have seen further
growth in the nations production portfolio, thanks
to the development of significant coal seam gas (CSG)
reserves in Queensland. Recent estimates suggest that
Queenslands CSG reserves could last for more than 100
years at current production levels.
But with this promise of long-reaching gas production comes technical challenges and increased regulatory oversight. Australias Coal Seam Gas Code of
Practice has established a best practice framework that
includes mandatory standards for well construction,
monitoring and maintenance, with an emphasis on
zonal isolation and protecting the environment. Adherence to these standards requires innovative zonal
isolation technologies that work in complicated well
In a conventional CSG well design (left), the practice of cementing individual
geometries and production zones.
casing strings with slotted casing in the open hole production zones leads to
Throughout its 50-year working history with Ausrisks of gas migration and channeling during the cementing operation or mitralian oil and gas producers, Weatherford has decroannular gas migration during the life of the well, thus contaminating subsigned and manufactured zonal isolation technologies
surface aquifers. The recommended design (right) uses enhanced cementing
aimed at ensuring well integrity while saving rig time
and zonal isolation technologies that lower isolation risks and comply with
and boosting safety and environmental compliance.
Australias CSG Code of Practice. Images from Weatherford.
Inflatable packers have been one area of continued
development. By providing immediate and long-lasting seals,
ing and the open or cased hole. Built on standard API tubing or
these packers ensure reliable zonal isolation for water and gas
casing sizes and grades, the ACP consists of a reliable locking
shutoff, thus preventing gas migration and facilitating two-or
valve system and rubber inflation elements that can be inflated
three-stage cementing operations. They also serve to isolate the with either wellbore fluid or cement, as application requiregas bearing coal zonesfrom aquifers that are an essential water
ments dictate.
source for irrigation and local community water supplies.
CSG operators have the choice to inflate an ACP with ceThe BullDog annulus casing packer (ACP) is an inflatable
ment due to the reliability that the packer affords during the
packer designed to pack off the annular space between the casinflation process. Cement inflation provides longevity of the
26 AOG
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elastomer seal required to isolate the lower coal seam from

subterranean formations and aquifers above. This option also
allows the operator to meet Australias regulatory isolation
requirements that the cement be placed within a few meters
across the coal seam face for optimal isolation.
Further isolation assurances are provided when an ACP is
used in conjunction with systems that prevent the migration
of production fluids between the cement and the casing string.
The Weatherford Micro-Seal swellable elastomers, for example,
are designed to repair the microannulus gaps that could develop over the life of a well. Such gaps are commonly formed due
to prolonged production, temperature fluctuations or movement
of the production tubing during a wells lifetime.
Optimizing packaging and make-ups
To be truly effective, the focus on well integrity and optimization must begin before the zonal isolation equipment arrives
The old crating method using

single-service wood crates
The new method using

reusable steel cradles
at the well site. As part of its mandate to conduct operations

while reducing impacts to land and decreasing energy usage,
Weatherford embarked on a new packaging initiative for its
zonal isolation tools in early 2014.
Much of the zonal isolation equipment used in the CSG fields
of Australia is supplied from a Weatherford manufacturing
plant in mainland China, where it is individually packaged
into wooden crates and shipped by boat to a storage facility in
Chinchilla, Australia. The wood used in each crate is specially
treated to conform to Australian Quarantine regulations. This
treated wood is difficult to source, costly to purchase and poses
a negative impact to the environment.
The wooden crates are then transported to the rig site, where
each component of zonal isolation equipmenttypically an
ACP, stage cementing tool and float equipmentis unpacked
from their own wooden crate and subsequently made up as a

complete assembly.
The life cycle of the wooden crates is short-lived and typically ends at the rig site. The quantity of equipment shipped
by this method results in massive quantities of wooden crating
waste, adding significant disposal costs and creating a large
environmental footprint for every field operation.
Switching to steel
The new initiative was aimed at finding suitable replacement crating material that would not only reduce environmental impacts,
but also would streamline shipments and improve efficiency.
Research efforts settled on steel tubulars as the new crating
material, which were strong enough to withstand rough handling and storage during shipment, but were cost effective and
reusable. The new steel equipment cradles would have to be
simple in design and suitable for efficient stacking by forklift or
crane at any stage of transport and delivery to the well site.
Further design development led to the
recommendation of making up all of the
zonal isolation components into one assembled piece at the manufacturing facility in China. This would lower the amount
of manual handling and equipment make
up by the crew at the rig site, thus lowering safety hazards at the same time.
The fi nal design allowed for three full
zonal isolation assemblies per cradle,
which translated to one reusable cradle
delivering equipment for three CSG wells.
Once all zonal isolation assemblies are
installed in the wells, the cradles are
then mobilized back to the point of origin
through a tracking system and inspected
and repaired as required. The cycle then
begins anew, with the cradles returned
to the manufacturing plant for loading of
three new zonal isolation assemblies.
Tangible savings secured
This new sustainable shipment option provides several tangible benefits to the CSG
operator. Shipping three full assemblies
on one cradle streamlines the logistics
and procurement processes. It also lowers
health and safety risks in the field.
Eliminating wood out of the shipping equation lowers
disposal costs for the operator and has the potential to save an
estimated 154,000 kgs of treated wood per year (based on an
annual field development plan of 700 wells). In total, an operator could save up to $1 million per year on wood crating and
in-field equipment make up time alone, with the added benefit
of promoting a commitment to safety and the environment.
The fi rst shipment of zonal isolation equipment using the
new steel cradling system left China in late 2014, and was
successfully delivered to the operators rig site in Australia
with no damage or issues. This new cradle design, coupled
with the proven well integrity benefits that the zonal isolation
equipment provides in CSG wells, continues to give Australian
operators the piece of mind that comes from partnering with a
fully integrated well integrity service provider. AOG
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Championing Australias e
James Parsons, Swire
Oilfield Services general
manager for Australasia
shares his view of the
current Australian oil and
gas market.
n a dramatically changing market where oil prices have taken

a turn for the worse for what many analysts are predicting to
be a long haul, a number of major players have taken drastic
measures to weather the storm. With cutbacks on the cards and
projects under review theres never been a greater emphasis on
efficiency. As the industry braces itself for significant headwinds, efficiency means survival.
Market overview
The current market is in a state of metamorphosis. Its a simple
story of supply and demand. The growth rate of shale in the US
took the market by surprise and suddenly the worlds insatiable demand for oil and gas was overtaken by supply. When
it became clear that OPEC countries wouldnt reduce output to
counter the price dip, a seismic shift began to emerge.
Although operators are being forced to accept significant
write-offs for current LNG projects, and budget cuts have been
confirmed across the oil and gas board in 2015 and beyond,
Australias position as one of the worlds largest LNG exporters will help the country stand firm against the looming threat
of sustained low prices. HSBC recently predicted that by 2018
the country would hold the accolade of the worlds foremost
exporter of LNG with capacity of more than 80 MPTA.
In the short term the oil price slump is having a positive effect on the overall economy, with analysts predicting a boost in
household income and companys like Virgin Australia reporting a significant increase in revenue as a result of the price
plummet.
And as a net importer the lower oil price will see Australia
get much more for its dollar.
For businesses in the Australian supply chain, like Swire
Oilfield Services (SOS), the oil price uncertainty presents an
opportunity. Our countrys resources and exports are solid,
but supply chain processes across the industry are wasting
unfathomable amounts of cash cash that would help position
explorers and producers well to weather the current climate.
28 AOG
Creating more efficient businesses

So how will we, as an industry, adjust to the current climate
and come out the other side better equipped to deal with what
the market throws our way?
It comes down to a collective approach of getting back to
basics to introduce a new level of efficiency that will counteract
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s energy industry
The second phase is where the pressure of cost and efficiency
is sustained over a longer period of time, giving operators
greater incentive to challenge supply chain structures and
processes. In this critical phase, its the responsibility of
the supply chain to really bolster efficiency by innovatively
reconfiguring itself and streamlining processes until they are
at the leanest and safest theyve ever been, and to challenge
the scope of their services to introduce more sustainable
efficiencies.
This is the phase where we as in industry, in Australia,
will reach a positive critical mass. Although the Australian
industry has evolved to be at the top of its game in many
ways, its not without the inefficiencies that are inherent
with accelerated growth. You only have to look at other
industries with narrower profit margins to realize what can be
achieved when financial health is under scrutiny. In the past,
addressing these issues has taken a back seat while a thriving
market was firmly focused on safety, maximizing production
and exploring new territories. This new era allows us the time
to reset ourselves and prepare for a very different environment,
emerging as a leaner, meaner and ultimately safer supply chain
that allows the industry to continue to solve the challenges it
comes up against.
Positive change
Against a backdrop of uncertainty, its time for the service
sector to embrace flexibility and innovation, to look inwardly
and to collaborate with peers as well as customers to create a
more efficient industry. An industry that will allow Australia
to develop its significant resources and to help our country and
communities strive in the long term.
We should be looking at other industries and the challenges
they have faced to learn from businesses that have already
been squeezed by economic downturns and the complexities of
import and export competition.
Ultimately, we should see the oil price uncertainty as a catalyst for positive change. AOG
Image from iStock
the effects of lower budgets.

In my experience, initial efforts to improve efficiencies in
times like these are typically conducted in two phases.
First, a relatively basic approach is adopted by reducing the
overall costs of the existing supply chain and its contributing
elements.
James Parson is Swire Oilfield Services

general manager. Originally from
Launceston, Tasmania, he is a graduate of
the Royal Military College of Australia.
After spending 15 years as an officer in the
Australian army, retired rank of Major, he
spent several years in the shipping and
maritime industries. He joined Swire in
2012. Parson holds a BSc, M.Bus from UNSW, James Cook
University and University of Newcastle, and subsequent
masters level awards in innovation management through
study at Norwegian School of Management (BI), Stanford and
Berkley University in US, and Nanyang University in
Singapore.
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GEOFOCUS AUSTRALIA/NEW ZEALAND
UWA molds next generation

engineers down under
The University of Western Australia
(UWA) tells us how they have been
central to the research and development
underpinning the energy sector and
education of aspiring professionals in
Western Australia.
hile the North West Shelf is a significant oil and

gas production area in Western Australia, with
deep and expansive untapped reserves that will
power energy needs for years to come, it offers some of the most
intriguing seabed challenges.
At UWAs Centre for Offshore Foundation Systems (COFS),
researchers led by Professor Mark Cassidy are developing new
benchmarks for deepwater engineering and exploration to unravel the complexities and unique characteristics of the North
West Shelf ocean floor.
After 22 years in operation, COFS is today recognised for its
groundbreaking geotechnical centrifuge modeling
technology, which provides accurate simulations
in a safe experimental environment that ultimately
helps to make mobile oil
and gas platforms safer
and more efficient.
Our aim at COFS is
to develop engineering
analysis methods that
engineers can use in the
daily design of offshore oil
and gas infrastructure,
said Professor Cassidy.
We integrate miniature
experiments, sophisticated
numerical analysis and
theory in order to ensure
that our offshore foundaLeft: Aerial shot of UWA.
tions are stable.
Above: Prof. Mark Cassidy.
AU$100 billion resource exports

Western Australia is a major global resources economy with its
capital city Perth ranked as the nations most important energy
city. The states resource exports have reached AU$100 billion
(US$76.4 billion) per year and this growth has attracted world
renowned expertise to UWA.
Through the universitys Energy and Minerals Institute
(EMI), academic team with the industry and government work
on global projects to develop new technologies for todays
resource challenges.
EMI has a vision to advance knowledge and create solutions
that deliver safe, enduring value for the world from its energy
30 AOG
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and mineral resources.

The institute connects UWAs talent and capability across
the energy and minerals value chain, builds multi-disciplinary
networks and strengthens partnerships with industry and
external stakeholders.
Petroleum research at UWA
UWAs Centre for Energy Geoscience, led
by Professor David Lumley, encompasses a
broad range of geology, geophysics and
engineering expertise related to subsurface characterisation and monitoring of
the Earth.
This involves research that includes advanced computational 3D and time lapse
4D seismic imaging of subsurface reserProf. David Lumley
voirs and fluid flow, detailed core, log and
outcrop-scale reservoir geology analysis, depositional systems,
sedimentology and bio sequence stratigraphy, and basin scale
structural and tectonic evolution studies.
The centers research has applications to hydrocarbon exploration and recovery, unconventional energy resources, subsurface CO2 sequestration, plate tectonics and earthquake seismicity, environment and climate change.
The centre enjoys collaborations with academic, government
and industry colleagues across Australia, as well as international universities and research labs.
It also contributes to investigations on how to sequester CO2
in an environmentally sustainable way. UWAs CO2 Processing
and Sequestration Laboratory isa world class carbon storage
research facility.
This facitlity is also an important component of Australias
national efforts to achieve carbon reduced resources and energy economy.
From this year, UWA is offering a geophysics honors degree,
focused on interdisciplinary study of the Earth, oceans and
atmosphere, using the quantitative methods of physics, mathematics and computer science.
Chevron and UWA partnership
In 2009, a young professor, Eric May, was appointed as the first
UWA Chevron Chair in Gas Process Engineering. This move
that signaled a major partnership between a university and the
petroleum industry, injected significant funding into teaching
a new generation of gas engineers.
Chevron Corp.s multi-million dollar investment was used
for postdoctoral research and scholarships to attract the best
Prof. Eric May
The UWA Geology Building
students into the field. It has helped with the research into
gas process engineering being done at UWA to improve the
processes by which the gas is extracted and converted into a
saleable commodity.
Professor May, who also works in UWAs Centre for Energy,
leads the research in hydrocarbon process engineering, adsorption, CO2 sequestration, flow assurance, and the measurement
and prediction of fluid properties.
Postgraduate engineering
A course unique in its focus on downstream oil and gas processing, UWAs master of engineering in oil and gas provides a
comprehensive skill set for engineering graduates wanting to
work in the global oil and gas industry.
Designed in collaboration with the universitys industry
partners to match current energy trends, the course synchronises with the rapidly expanding natural gas and liquefied
natural gas industries.
Students will also learn the principles of project planning
and management and take part in a unique hydrocarbon field
development project.
Oil and gas laws
The regulation of oil and gas operations and the contracts
underpinning them are becoming increasingly complex in the
country.
In 1990, the Centre for Mining, Energy and Natural Resources Law (CMENRL) was established in UWAs Faculty of Law
School, in response to the steadily increasing profile of mining
and oil and gas exploration in Western Australia.
The center has more than three decades of experience in
arranging highly successful workshops and seminars in oil
and gas law, environmental law, project development law and
corporate governance.
CMENRL offers formal education courses at undergraduate
and postgraduate levels, as well as executive education and
training.
The law faculty and CMENRL offer the masters of mining
and energy law and master of commercial and resources law.
The team also contributes to new postgraduate programs with a
focus on public and private international law, including policy
and regulation, as well as Chinese law.
The workshops forming part of these courses, which are
available both to postgraduates and executives, are designed for
professionals who want to progress in the industry. They are
highly practical and use real life examples. AOG
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Solutions
Wrtsil introduces two-stroke engine produced in China
The first Wrtsil
dwt multi-purpose vessel currently under construction at the
two-stroke engine
Ouhua shipyard on behalf of China Navigation Co (CNCo). The
with a high pres-
ship, which is scheduled for delivery in the 2Q 2015, has been
sure SCR (selec-
designed to allow sufficient space for the fitting of the SCR.
tive catalytic
The SCR system for this application has been jointly devel-
reduction) system
oped by HHM and Winterthur Gas & Diesel (WinGD), the joint
manufactured
venture company of Wrtsil and China State Shipbuilding
in China has
Company (CSSC), using a basic design concept from Wrtsil
been introduced.
which has been adapted to suit the particular requirements
The system is
of the engine and ship. Wrtsil has been producing its high
fitted to a 5-cyl-
pressure NOx Reducer SCR systems since the late 1990s. The
inder Wrtsil RT-
system injects a solution of urea into the exhaust gas flow
flex58T-D 2-stroke,
to react with and eliminate the NOx emissions. It is a high
low speed engine produced at the Hudong Heavy Machinery
pressure process because the reactor is located between the
(HHM) facilities. The SCR reactor was also manufactured by
engine exhaust valves and the turbocharger turbine inlet. This
HHM. This is the first SCR system that complies with the IMOs
provides the most compact and efficient system without com-
Tier III regulations for engine emissions of nitrogen oxide (NOx).
promising engine performance or impacting fuel consumption.
The Wrtsil engine with SCR is to be installed in a new 22,000
www.wartsila.com
ABB INTRODUCES AZIPOD D

ABB unveiled
a new addition
to its Azipod electric
propulsion offering, the Azipod D, which
provides
designers and
ship builders
with increased
design flexibility in order to accommodate a wide range of hull shapes and
propeller sizes, as well as simplicity
of installation of the propulsion units.
The Azipod D requires up to 25% less
installed power. ABB this is due to its
new hybrid cooling, which increases the
performance of the electric motor by up
to 45%. Other benefits of the Azipod D
propulsion system also include superior
maneuverability, competitive investment
cost, ease of service and maintenance,
and a significant performance increase
compared to mechanical thrusters. ABBs
Azipod D propulsion power ranges from
1.6-7MW per unit.
www.abb.com
HALLIBURTON LAUNCHES
QUASAR PULSE SERVICE
Sperry Drilling, a Halliburton business
line, has begun providing Quasar Pulse
32 AOG
Service, and M/LWD service capable

of operating in harsh environments up
to 392F and 25,000 psi. Quasar Pulse
Service can deliver directional, gamma
ray, PWD and vibration data for wellbore placement in high temperature
and pressure zones. The service allows
access to reserves that conventional tools
cannot reach and can eliminate the need
for mud chillers and staging to cool
down tools, saving valuable rig time and
improving efficiency. Tool sizes include
4-3/4 and 6-3/4in, allowing it to perform
in wellbores up to 9-7/8in in diameter.
With more than 50 successful runs and
nearly 90,000 feet drilled, the Quasar
Pulse Service has delivered measurements around the world and has been
tested in challenging environments in
the Middle East, Asia Pacific and unconventional fields in North America.
www.halliburton.com
WELLTEC RESTORES PRODUCTION

WELL WITHOUT WORKOVER RIG
Welltec has successfully demonstrated
an alternative to rig based workovers.
Offshore Timor Sea, an inflatable packer
got stuck passing through a flapper
valve. At the same time, a hold-open
sleeve dislodged during the migration
and landed on top of the valve. Clearing the well took half the expected time,
utilizing a fleet of patented technology
including Well Tractor, Well Miller, and
Well Stroker. The operation was performed without a workover rig reducing
costs. This was a job well planned and
executed. The well was brought back online at 100 MMscf/d flow rate after two
years of inactivity. 17 runs were conducted with zero misruns and no HSE or
quality incidents, which is an outstanding achievement, said the completions
and well intervention coordinator for
ConocoPhillips.
www.welltec.com
| March April 2015
aogdigital.com
032_AOG0415_Solutions.indd 32
4/2/15 10:39 AM
Subsea Innovation and Efficiency

Delivering Economic Success
www.deepwaterintervention.com
Contact Information
Conference:
Sponsorship & Exhibits:
Jennifer Granda
Gisset Capriles
Tel: +1 713-874-2202
Tel: +1 713-874-2200
Content is copyright
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only - not for reproduction or retransmission.
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gcapriles@atcomedia.com
DWI_oe_prt_0315_180_97x250_82_fp.indd 1
4/2/15 9:53 AM
2/23/15 8:52 AM
Contracts
Valmecs first Talinga Gas contract
existing facilities.
In recent months, the fi rm also secured
other smaller contracts for mooring,
jackup installation and offshore pipeline and subsea work in the Asia Pacific
region, boosting its order book to over
$1.8 billion.
We are pleased to have clinched another major project from the same client
in India this month. Going into the tender, we exercised stringent cost analysis
and took into consideration the inhouse
and shared resources within the group,
said CEO, Francis Wong.
BOS GETS MYANMAR CONTRACT
Valmec Services has been awarded its first contract to provide services to the
Talinga Gas Processing Facility, operated by Origin Energy. This follows the companys acquisition of Exterran Australia in December 2014.
Located 30 km southeast of Chinchilla in Queensland, the Talinga processing
plant plays an integral part to the Australia Pacific liquefied natural gas (LNG)
project.
We are delighted to have secured such a significant service and maintenance
contract on the back of the acquisition of Exterran Australia and to be involved in
this project for Australia Pacific LNG and Origin, said Valmec managing director,
Steve Dropulich.
It will be delivered by our Queensland site-based team and Dalby workshop
services team, supported by our project construction operations.
IKM SUBSEA BAGS

ROV WORK IN THAILAND
IKM Subsea Singapore will deploy its
Merlin WR 200 remote operated vehicle
(ROV) onboard Solstad Offshores derrick
lay barge Norce Endeavour for construction support projects offshore Thailand.
IKM Subsea has a history with Solstad dating back to 2009 when we had the
fi rst Merlin WR 200 onboard their vessel
in Norway, said Mahesh Govindan, general manager, IKM Subsea Singapore.
This was a stepping stone for IKM into
the ROV market and we have grown ever
since. We are proud to continue our support to Solstad in the Asia Pacific region
and hope this would be a successful and
long lasting partnership.
Previously, Merlin WR 200 was contracted by Eni Indonesia to provide ROV
services onboard the companys drill rig
Scarabeo 7 used to drill exploration and
completion wells in Indonesia.
MACGREGORS CHINESE
SHIPBUILDER ORDERS
Chinese shipbuilder Wuhu Xinlian
awarded MacGregor to supply two com-
34 AOG
plete deck equipment packages for a pair

of supply and oil recovery vessels.
Each equipment package includes
a medium pressure anchor windlass
winch, capstans, tugger winches, storage reels, a provision crane and power
packs.
It will be installed on the 12,000 bhp,
150-tonne bollard, 78m anchor handling
pull vessels, currently under construction for Sentinel Offshore Ltd.
Having added the Hatlapa and Triplex
brands to our portfolio, we are able to
offer complete, proven and competitive
solutions for the mid and large sized anchor handling tug supply vessel market,
said Francis Wong, head of sales and
marketing, MacGregor.
SWIBER WINS IN INDIA

Swiber Holdings Ltd., clinched a US$333
million agreement for engineering, procurement, installation and construction
(EPIC) services in India.
Headquartered in Singapore, this
contract will see Swiber transport and
install submarine pipelines, along with
engineering works and modification of
Moattama Gas Transportation Co.

(MGTC) has hired Bibby Offshore Singapore (BOS) to provide remote operated
vehicle (ROV) pipeline inspection, remedial work and associated project management offshore Myanmar
Bibby Offshore will supply its DP2
ROV support vessel, Bibby Spring. The
vessel is equipped with dual ROVs,
including the latest 150HP, 3000m-rated
SMD Quasar, and complemented by a
Lynx lightweight ROV suitable for dive
support, inspection and repair.
Earlier this year, BOS secured a contract with Singapore-based subsea service provider Seascape to provide ROV
services for its DP2 dive support vessel
the Windermere.
MCDERMOTT SECURES
FMC JANGKRIK GIG
McDermott International was awarded
its fi rst contract by FMC Technologies
to provide subsea safety isolation valve
module fabrication services for the Jangkrik fields located offshore Kalimantan,
Indonesia.
Scope of work includes fabrication
of approximately 3200-tonne of subsea
manifolds and subsea safety isolation
valve modules to be installed in water
depths ranging from approximately 3291640ft.
Our demonstrated track record in
the delivery of customized, high-quality
subsea solutions from our Indonesian
fabrication facility on Batam Island,
including the Gorgon subsea structures
fabrication project and the Ichthys engineering, procurement, construction and
installation project, positions us strategically to support FMC Technologies in
fabricating the Jangkrik complex subsea
infrastructure, said Hugh Cuthbertson,
McDermott VP and general manager,
Asia Pacific.
| March April 2015
aogdigital.com
034_AOG0415_Contracts.indd 34
4/1/15 10:24 PM
Activity
GE opens Western Australia facility
Designed to service subsea projects, GEs new oil and gas unit is
located in Broome, the Kimberley region of Western Australia.
It will support the offshore installation phase of INPEX-operated
Ichthys LNG project by providing local support for preparation,
storage and routine maintenance of subsea equipment supplied
by the company.
The establishment of the Broome facility represents an exciting milestone for our business in Australia, said Mary Hackett, regional director for Australia, New Zealand and Papua New Guinea
of GE Oil & Gas.
We are proud to be able to provide customers a solution that
will mean better and more efficient operational and maintenance
support for crucial offshore LNG development. It is great to deliver
that excellence as part of the Broome community.
The Broome location was chosen for its proximity to the
offshore operations and to complement INPEXs existing offshore
support infrastructure in Broome. INPEX also has a dedicated
office space at the new facility.
CHEVRON SELLING
AUSTRALIAN BUSINESS
Chevrons subsidiary Chevron Global
Energy entered into an underwriting
agreement to sell 50% of its interest in
Caltex Australia Ltd. (CAL) to generate
cash to support its long-term priorities.
The supermajor expects that these shares
to be sold to a broad range of Australian
and global equity market institutional
investors.
Chevrons says it will continue to ensure a reliable, high-quality supply of
product is available to the Australian
petroleum market company to supply to its retail and reseller franchise
network and is committed to seeking
long-term relationship opportunities
with CAL.
FERGUSON EXPANDS
MALAYSIAN FLEETS
Ferguson Group Singapore expands
in the region, with an increase in
its Malaysian based fleets, Labuan
Supply Base (ASB) and West Malaysias
Kemaman Supply Base (KSB).
We are moving workspace modules,
as well as reefer units to our Malaysian
bases. Coupled with the wide range of
cargo carrying units available from all
our partners Ferguson Group Singapore
will be ideally located to offer a faster
response time for deploying assets to
clients, said the groups business unit

manager, Simon de Koning.
Before this, the group partnered with
Thailands OPS Oilfield Equipment and
Services Ltd., to service the region with
cargo carrying units, including dry
goods, open tops, half heights, skips and
cargo baskets.
SWIRE AND ALTUS
OPEN NEW BASE IN MALAYSIA
Swire Oilfield Services and Altus Oil
& Gas Malaysia Sdn Bhd opened a
new base in Kemaman, a district in
Terengganu situated on the east coast of
Malaysia.
The opening of our new base in
Kemaman represents a significant expansion of our presence here in Malaysia
and has come as a direct result of increased demand for our units, indicating
a strong market in South East Asia, said
Alister Beck, general manager South East
Asia, Swire.
In addition to offering a range of services including refurbishment, maintenance, inspection and logistics, the
new venture will also help boost local
employment opportunities.
FRONTIER OPENS OFFICE IN INDIA

Frontier Internationals new office in
India, the company said, signifies further
international expansion to support
its increased activity in Asia and the

Middle East.
The Gurgaon-based operation will
be led by manager Arjun Bhakhri, who
brings 10 years of oil and gas recruitment experience in India and the Middle
East.
As a company, Frontier has a long
pedigree of working with clients in
Asia and the Middle East, said Paul
Radcliffe, Frontier Internationals managing director.
Our investment in this office is a succinct illustration of our commitment to
ensuring we continue to provide service
in oil and gas recruitment to our clients
in these areas.
SPEEDCAST ACQUIRES
HERMES DATACOMMS
The acquisition of Hermes Datacommunications International Ltd., will create
a new global force providing advanced
communications and IT services to the
energy sector, said Hong Kong-based
SpeedCast.
This game changing acquisition
opens a new chapter for our energy
business, greatly expanding the scale,
scope and capabilities of our business, said Pierre-Jean Beylier, CEO,
SpeedCast.
Hermes Datacomms experience servicing oil and gas customers is an ideal
March April | AOG
aogdigital.com
035_AOG0415_activity.indd 35
35
4/2/15 12:14 PM
fit for SpeedCast. It brings us capabilities

and relationships that would otherwise
be difficult and long to acquire.
The combined capabilities of
SpeedCast and Hermes Datacomms
include an integration of services such as
satellite communications, fibre connectivity, radio services, oilfield communication services, 24/7 real-time monitoring and rapid customer response.
LOYZ, SUN PETROCHEMICALS
INK TWO MOUS
Singapore-based upstream firm Loyz
Energy, and Indias Sun Petrochemicals
signed two binding memorandums of
understanding (MOUs). The Indian
petrochemical manufacturer, through
its exploration and production division,
Sun Oil and Natural Gas (SONG) will
work on upstream projects together
with Loyz.
The first MOU will see Loyz jointly bid
for upstream projects with SONG who
will bear the entire costs and expenditure of Loyzs participating interest
share. In the event there is net revenue
accruing to the project, Loyz will be entitled to its carried participating interests
share of revenue, plus be responsible for
its share of future costs.

Under the second MOU agreement,
Loyz will transfer and assign its Indian
assets, such as production sharing contracts of the Modhera and Baola fields to
SONG. In turn, SONG will commit US$1
million to utilize on the assets to complete the work program, lifting production and monetizing the reserves at the
two fields.
SINOPEC ESTABLISHES
SHALE OIL CENTER
Chinas National Energy Administration
approved Sinopecs National Shale Oil
Research and Development Center.
Sinopec says that with the rapid development of unconventional energy including shale oil and gas in recent years, a
new wave of energy revolution has been
triggered around the world. Shale oil,
following shale gas, becomes another
focus of global unconventional resources
exploration and development. The establishment of the center is of historical and
practical significance to Chinas shale oil
development.
The centers inauguration and first
academic committee conference was
held in the Petroleum Exploration and
Custom
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BMT OPENS JAKARTA ENVIRONMENTAL TESTING FACILITY
BMT Asia Pacific opened its first environmental testing facility in Jakarta,
Indonesia. Certified to ISO17025 by
Komite Akreditasi Nasional (KAN),
Indonesias national accreditation body,
the new laboratory provides high-quality
technical testing services for BMTs oil
and gas clients including: noise, ambient
air quality, water quality, toxicity and
emissions.
Previously outsourced, these technical testing services have been brought
in-house to better support BMTs environmental assessment and consenting offering, which includes statutory compliance, environmental impact assessments
and decommissioning studies.
Backed by experienced in-house
environmental experts, training programs and rigorous QA processes, the
laboratory operates according to industry
standards. BMT says that this is particularly important in light of increasingly
stringent government regulations for
environmental monitoring.
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Numerology
83 MTPA
The number of technicians needed for

recruitment on commissioning projects
See page 18.
80-100
80
million tons
per annum
Australias expected LNG

production capacity by
2018. See page 28.
AU$100billion
72%
Western Australias revenue

from resource exports per year.
See page 30.
Percentage of energy professionals who believe the industry is

male-dominated. See page 20.
2015
The year GEs new oil and gas unit opened

in Broome, Australia. See page 35.
Photo from GE Broome Facility.
US$58million
30km
Approximate cost of two offshore support

vessels from Nam Cheong Ltd. See page 8.
Distance of Talinga processing plant from the southeast

of Chinchilla in Queensland, Australia. See page 34.
100
38 AOG
The number of rigs currently in service

in Southeast Asia. See page 12.
Photo from Valmec Talinga Gas.
The number of years coal-seam gas reserves could

last levels in Queensland, Australia, based on
current production. See page 26.
| March April 2015
aogdigital.com
038_AOG0415_Numerology.indd 38
4/2/15 10:44 AM
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ASIAN OIL & GAS

March - April 2015

GHOST - image by James P. Blair/National Geographic/Getty Images

New discoveries, leases, and development plans.

12 Rigs continue to idle as Asian drilling activities decline

14 Standardization of SENT test method

18 Recruiting for commissioning

20 Spotlight Women in oil and gas engineering

AOG discusses the opportunities and challenges confronting women in the

26 Well integrity, from start to finish

28 Championing Australias energy industry

30 UWA molds next generation engineers down under

Valmec Services will provide services to Origin Energys

34 Valmecs first Talinga gas contract

Meet the five engineers profi led in our

ASIAN OIL & GAS

Atlantic Communications LLC

QINHUANGDAO 32-6 STARTS UP

OILEX PLANS NEW

the remaining interest in the block. In

leads and prospects, with gross prospective resource estimate of approximately 11

target range of 84 -91 MMboe will remain

Lewek Constellation. Photo from EMAS AMC.

EMAS AMC, the subsea services division of Singapore listed EZRA

KEPPEL FELS 100TH JACKUP RIG

SONGA EQUINOX DELIVERY DELAYED

Save the date!

Geology & Geophysics

seismic spread of 12 streamers, 7050m in length with 150m streamer

KrisEnergy holds a 33.33% working

The CGG Amadeus, owned by PTSC CGGV

SURVEY MOVES FORWARD

through a DUG Broad PSTM flow to

GARDLINE CGG WINS

HOW DO YOU BRING

Rigs continue to idle as

Global drilling activities

Active rig counts

Offshore rig. Photo from iStock.

evolve their businesses to cope with the downturn, Rodger said.

The sixth unit, theOcean Winner, will be retired and scrapped

Requirements for testing facture toughness in pipelines is increasing, as more

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for commissioning of oil

ommissioning and planning are essential elements in

The commissioning manager must be appointed at an early

lengths to ensure that the corporate