YEARin Review

NEWS
2012
INSIDE
YEAR in Review
Noia supports development of Muskrat Falls
Offshore safety a team effort
Increasing oil recovery
Newfoundland & Labrador Oil and Gas Industries Association
Volume 27, Number 4 Fall 2012
Canada Post Publications Mail Agreement 42407516
What we do matters
The Cahill Group of Companies
is a leading
multi-disciplinary construction company. We are proud to
be involved with projects that matter within the oil and
gas, mining, power generation, water treatment and
institutional markets.
Our employees are our source of strength and success. To
support our steady growth and dynamic projects, Cahill
employs over 200 full time staff with a peak workforce in
excess of 1,200 trades people.
Noia Board of Directors 2012
Chair
Michael Critch, NSB Energy
Vice-Chair
Trevor Giles, Technip Canada
Past-Chair
Tim Lawrence, Oceaneering Canada
Treasurer
Sean Power, DFB Group
Directors
Rob Strong, Blue Water Agencies Limited
Marty Gaulin, Worley Parsons Canada
John Henley, Cahill Group of Companies
Doug Youden, Upstream Solutions Incorporated
Paul Dwyer, Schlumberger Canada Ltd.
Moya Cahill, PanGeo Subsea
Bruce Grant, Stewart McKelvey
Raymond Collins, PF Collins International Trade Solutions
Noia News
Editor-in-Chief - Deborah Inkpen
Editor: Marilyn Buckingham
Layout & Design: Steffanie Martin | NudgeDesigns.ca
Contributing Writers: Deborah Inkpen, Marilyn Buckingham,
9
20
39
Contents
Kristann Templeton, Moira Baird, Terry Hunt
Published by Noia | Printed by Cansel Wade
Opinions expressed in this publication do not necessarily reflect
4
President’s perspective
7
Last quarter at Noia
9
2012 Year in Review
20
Lessons to learn from down under
21
World energy cities meet in St. John’s
For advertising: Call 709-758-6613 | Fax 709-758-6611
22
Women entrepreneurs provide insight and inspire
E-mail [email protected]
23
Noia supports development of Muskrat Falls
24
Delving deeper into subsea technology
signed and include your address and telephone number. Noia
26
Noia announces 2012 Hibernia Commemorative Scholarship winner
reserves the right to reject or edit submissions.
27
Offshore safety a team effort
32
Increasing oil recovery
34
Strategic Environmental Assessment update team visits 11 locations
36
Newfoundland & Labrador-based oil & gas R&D moves forward
39
Export opportunities in Brazil’s oil & gas industry
42
Another successful year for Placentia Bay Industrial Showcase
the views of Noia.
Letters and guest articles are welcomed. Submissions must be
Editors of other publications may reprint articles from Noia
News, with appropriate credit.
Canada Post Publications Mail Agreement 42407516
Contact Noia:
www.noia.ca | [email protected]
43
Noia Chair takes on new role
Box 44, Suite 602, Atlantic Place, 215 Water St.
44
7th annual Western NL Oil & Gas Symposium takes place
St. John’s, NL, Canada A1C 6C9
Noia News 3
PRESIDENT’S PERSPECTIVE Robert Cadigan
President’s
Perspective
Robert Cadigan - Noia President & CEO
This fall, Noia has been working with stakeholders and
asking that our members attend the C-NLOPB’s public
information sessions for the Western Newfoundland and
Labrador Strategic Environmental Assessment (SEA)
Update to ensure that the voices of local businesses and
the oil & gas industry were heard.
Development of the western region of our province is
extremely important to the future growth of our industry. It
has great potential for additional hydrocarbon resource
development. It is important to our people, our future,
and the economy to continue to explore and find
additional developments that can be secured for
coming generations.
As many of you know, a SEA examines the potential
environmental implications of a proposed program or
4 Noia News
policy decision. It assists the C-NLOPB in decisions to
issue exploration licences for marine areas within the
Newfoundland and Labrador Offshore Area. This SEA
will update a previous Strategic Environmental Assessment
completed in 2005 and amended in 2007. AMEC
Environment & Infrastructure has been engaged by the
C-NLOPB to prepare the update and to conduct these
public information sessions in Newfoundland and Labrador,
Nova Scotia, Prince Edward Island, New Brunswick, the
Magdalen Islands, and the Quebec north shore.
We believe in a strong consultation process with all
parties to ensure the industry continues to operate in
the safest and most environmentally responsible
manner possible.
Just as we have in other areas of the East Coast of Canada,
PRESIDENT’S PERSPECTIVE Robert Cadigan
we believe that we can conduct responsible operations
in the Gulf of St. Lawrence. We have a strong track
record of offshore operations with safe practices and
good communications between industry and stakeholders.
This area will be no different.
Our industry has been in operation for almost four
decades and will continue to benefit our people and
economy for many more years to come.
We appreciate that other groups may have differing
views. That is why this consultation process is so
important. We all need a forum for discussion. However, we
maintain that given the industry’s history of best practices
for offshore exploration, the western Newfoundland area
will greatly benefit from this activity, just as Newfoundland
and Labrador has been positively impacted by the last
30 years of offshore activity.
own research and experience tells us that there is public
support for offshore exploration as long as it is done
safely and respectfully. There is support for continued
offshore activity because it has brought with it great
prosperity… prosperity that has brought social and
economic benefit to the region.
Our industry believes in safe and environmentally
responsible practices. These principles are adhered to
in everything that we do. It is our number one focus.
We are asking all Noia members to consider sending a
written submission to the C-NLOPB in support of the
development of Western NL. This can be done in the
form of a short letter or a longer submission. It is critical
that the C-NLOPB receives a balanced view on this very
important issue.
We encourage a fact-based discussion that deals with
the issues and finds solutions and compromises. Our
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Noia News 5
There’s a very good reason why it’s called 351 Water.
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LAST QUARTER AT NOIA
Last quarter
at Noia
Committees and meetings
August
•
•
•
16 – Noia’s Executive and other Board members met with Bernard Valcourt, Minister of State (Atlantic Canada
Opportunities Agency) to discuss exploration
attraction issues
17 – Noia Board members and staff toured the
Terra Nova FPSO in Marystown
28-31 – Board Chair Mike Critch and President & CEO Bob Cadigan attended ONS 2012 in Stavanger, Norway
September
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12-14 – Noia staff attended the Western NL Oil & Gas 7th International Symposium at Marble Mountain
16-20 – Terry Hunt, Project Manager - Supply Chain
participated in the Atlantic Canada Mission to Brazil
25 – Bob Cadigan and Mike Critch attended the
Placentia Bay Industrial Showcase 2012
27 – Noia’s September Board of Directors Meeting
took place
30 – Western NL Strategic Environmental Assessment (SEA) information session took place in Port au Basques
October
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1-4 – Deborah Inkpen, Vice-President, Communications & Policy, attended the Maritimes Energy Association’s CORE conference in Halifax
1 – Western NL SEA information session took place
in Stephenville
2 – Western NL SEA information session took place in Corner Brook
3 – Western NL SEA information session took place in Rocky Harbour
4 – Noia’s Executive and staff met with representatives
of Exxon Mobil for a Hebron Progress Meeting
5 – Noia’s Executive and Staff met with Husky Energy’s Malcolm McLean to discuss plans for the White Rose Extension Project
15 – Noia’s Exploration Attraction Committee met
Noia News 7
LAST QUARTER AT NOIA
October
•
•
•
•
16 – Bob Cadigan attended the C-NLOPB Safety Forum
19 – Noia’s Membership Committee met
22 – Noia’s Labour Committee met
25 – Noia’s October Board of Directors meeting was held
Events and Socials
•
•
•
•
•
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•
•
SAVE
DATE
Oct. 10 – Worley Parsons UPM Workshop Session
Oct. 17 – Noia/NLOWE Event: Untapped Resources – Women in Oil & Gas, featuring keynote speaker
Anne Whalen, Corner Brook
Oct. 18 – Noia/NLOWE Event: Untapped Resources – Women in Oil & Gas, featuring keynote speaker
Moya Cahill, Clarenville
Oct. 24 – Noia Luncheon with the Lord Mayor of
Perth, Australia, Lisa Scaffidi
Oct. 30 – Noia SPE Luncheon featuring Patrick Hudson,
Leiden University
Nov. 14 – Noia Fall Seminar 2012
Nov. 14 – Networking Social sponsored by Worley Parsons
Nov. 23 – Noia/NLOWE Event: Untapped Resources - Women in Oil & Gas, featuring keynote speaker
Peg Hunter, St. John’s
THE
8 Noia News
June 17-20, 2013
St. John’s Convention Centre
COVER STORY Year in Review
2012
Year in Review
It was another busy year in the province’s offshore industry
as the Hebron partners laid the groundwork for construction
of the gravity base structure (GBS) at Bull Arm, the operators
of the Terra Nova and White Rose oilfields executed
off-station programs (OSPs) for their production ships,
and southward expansion continued at both Hibernia
and White Rose.
Hebron
The Hebron project development application received
regulatory approval in May – giving the go-ahead to
proceed with development of the province’s fourth
offshore oilfield. The Hebron partners led by ExxonMobil
are working to sanction development of the project by
year-end.
The project is currently in the detailed engineering phase.
Once the fine-tuning is complete and project sanction is
announced, construction of the $6.5-billion gravity base
structure begins. Next year, fabrication of the topsides is
also scheduled to begin.
Work continued at the Bull Arm site throughout the year
with construction of two new concrete batch plants,
installation of tower cranes, and completion of the
water-tight bund wall for the drydock where the GBS will
be built. Dewatering of the drydock took 34 days and was
completed in July. Installation of the steel skirt, which provides
foundation stability for the GBS, has also begun.
Construction of the GBS starts with building the base
Noia News 9
Premier Kathy Dunderdale announced the $150-million settlement of the dispute between the provincial government and the Hebron project proponents over the
in-province fabrication of the derrick equipment set (DES) module. The premier was joined by Natural Resources Minister Jerome Kennedy and Finance Minister
Tom Marshall. Photo courtesy of the Government of Newfoundland & Labrador.
slab, installing the piping system and slip-forming the
interior and exterior walls of the concrete pedestal.
When the walls reach 27 feet high, the drydock will be
flooded, the bund wall removed and the GBS floated to
the deepwater site where construction of the concrete
base will continue. The production platform will reach its
full height of 220 metres when the topsides are installed
on the GBS in 2016.
On Oct. 11, the provincial government announced it
had reached a $150-million settlement with the Hebron
partners on the out-of-province fabrication of the
derrick equipment set (DES) module. The payment will
be made to the province on June 30, 2016, and that
money will be added to the capital cost of the project
when royalties are calculated.
Under the 2008 Hebron Benefits Agreement, the DES
was one of three modules to be built in the province,
along with the living quarters and the drilling support
module. In June, the project proponent triggered the
dispute resolution process contained in the benefits
agreement – submitting a report to the province that
said there was insufficient yard capacity to build the
module locally. The provincial government disputed
this contention, and Noia supported the province in
its resolve to see the DES module built in NL and
in subsequent efforts to find a solution to the dispute.
ExxonMobil expects to build the drilling support module
at the Peter Kiewit Infrastructure facility at Cow Head on
the Burin Peninsula. Negotiations are ongoing, and the
contract is tentatively scheduled to be awarded during
the fourth quarter of this year. In June, the contract to
10 Noia News
build the living quarters unit was awarded to G.J. Cahill
Group and Apply Leirvik.
Hibernia
Hibernia Management and Development Co. (HMDC)
expects to install subsea equipment on the seabed next
summer as part of the continuing development of
Hibernia Southern Extension (HSE). In mid-August,
about the time Hibernia started a three-week
maintenance shutdown, the HAM 318 completed the
dredging of the HSE drill centre that will house the
subsea equipment.
So far, two HSE production wells have been drilled
from the Hibernia platform and first oil was pumped
in mid-2011. Next year, HMDC will use the rig West
Aquarius to drill water-injector wells when Statoil Canada
wraps up its three-well exploration program.
Terra Nova
The Terra Nova oilfield is scheduled to begin ramping
up production by the end of November — adding about
four weeks to the 21-week turnaround that saw the floating
production, storage and offloading (FPSO) vessel sail
to Cow Head to replace its water-injection swivel. The
FPSO arrived June 26 at the Peter Kiewit Infrastructure
yard, following the shutdown of the oilfield two-and-a-half
weeks earlier. Suncor Energy also refurbished the
production ship’s two main power generators, galley,
eating area and lifeboats.
While the FPSO was dockside, work continued at the
COVER STORY Year in Review
field replacing nine flowlines and risers with hydrogen
sulphide-rated equipment. Two dive-support vessels
and one construction vessel from Subsea Seven’s fleet
were involved in the equipment upgrades. Since late
2010, oil production at Terra Nova has been reduced
by the presence of low levels of hydrogen sulphide in
some wells.
The shipyard phase of the OSP ended Oct. 8, when the
production ship returned to the Grand Banks field. Two
days later, the FPSO safely reconnected with the risers,
and work was scheduled to continue throughout the fall
installing and tying in the flow lines.
White Rose
The White Rose oilfield resumed production Aug. 13
following a 102-day shutdown. The restart shaved three
weeks off the planned 125-day maintenance shutdown.
The oilfield shutdown started May 3, and the SeaRose
FPSO spent a month in a Belfast drydock for its first
off-station program since the field pumped first oil in
2005. The SeaRose left the yard July 4.
Husky expects to submit a development application for
the White Rose Extension Project by year-end. At that
time, the company will also select one of two options
for full development of West White Rose: a fixed wellhead
platform, also known as a concrete gravity structure
(CGS), that is capable of drilling wells and flowing
unprocessed crude to the SeaRose FPSO; or a subsea
tieback to the FPSO. The goal is to produce oil from the
wellhead platform by late 2016.
Following a year-long, worldwide rig search, Husky
awarded a new rig contract to Seadrill for use of the
West Mira, a semi-submersible under construction and
scheduled to arrive in the North Atlantic by mid-2015.
Husky said the rig will be used for a combination
of exploration and development drilling. Seadrill announced the five-year contract Nov. 12, stating it was
worth about US$1.18 billion and includes operations
off Canada and Greenland. The rig owner expects
construction of the West Mira, which is designed for
harsh environments and water depths up to 3,000 metres,
to be completed in the fourth quarter of 2014.
Husky will also keep the GSF Grand Banks for an additional
Noia News 11
The SeaRose FPSO in drydock in Northern Ireland. Photo courtesy of Husky Energy
32 months with the extension of its contract with rig
owner Transocean until the end of 2015. The rig has
been operating on Grand Banks for Husky since 2002.
On Aug. 8, Husky spudded an exploration well dubbed
Searcher C-87 in the Jeanne d’Arc Basin south of the
White Rose field. Work stopped at the well following
an Aug. 23 incident in which a 2.4-metre-long, hydraulic
cylinder fell about 12 metres to the drill floor. The
cylinder is part of the cushioning system for handling
tubulars in the drilling derrick. No one was injured in the
incident, but the CNLOPB called it a near-miss.
Husky suspended drilling operations and the Henry
Goodrich arrived in Conception Bay on Sept. 2 as part
of the company’s incident investigation. Rather than
deal with incidents one at a time, a Husky spokeswoman
said the company opted to take a closer look at its
operations. “We brought the rig into Conception Bay
to do that analysis and came up with a list of things that
needed to be worked,” said the spokeswoman. “That
would include everything from equipment to some processes
and training, and we’re working through that.”
Husky didn’t disclose the extent of the rig work, except
to say it includes the lifting equipment, fine-tuning some
of the work done earlier this year in a Mississippi yard,
and recertifications before the rig returns to the Grand
Banks. The work, which is taking place in Conception
Bay, is expected to be done by the end of November.
Husky expects to continue drilling Searcher C-87 when
the rig returns to the Grand Banks.
During the first half of the year, the Henry Goodrich
spent 103 days out of service, according to fleet status
reports issued by rig owner Transocean. The rig underwent
repairs, upgrades and refurbishing at Signal International’s
yard in Pascagoula, Miss.
In the fall, Husky filed a development plan amendment
with the CNLOPB for the South White Rose satellite
field. A company spokeswoman said the amendment
proposes using gas injection to recover oil from the
reservoir. The South White Rose development plan was
originally approved in 2007.
The dredger Cristobal Colon started excavating the drill
centre for South White Rose on July 23 and wrapped
up work by late September. Weather permitting, Husky
expects to install a temporary guide base this fall and
complete installation of other equipment, such as
flowlines, next summer.
Meanwhile, Husky received a two-year extension on two
Noia News 13
COVER STORY Year in Review
exploration licences it operates off West Greenland.
The company is evaluating geological and geophysical
data and will continue work on a socio-economic study
during the fourth quarter, according to its third-quarter
financial report.
Orphan Basin
Chevron expects to spud its next exploration well –
Margaree A-49 – in the Orphan Basin before year-end.
The drillship Stena Carron will make its second appearance
about 415 kilometres northeast of St. John’s to drill the well.
The well is located southwest of Chevron’s 2010 exploration
well, Lona O-55, in the same basin. Since January,
Chevron has been partnered with Statoil Canada and
Repsol E&P Canada in the deepwater Orphan Basin.
Flemish Pass
Statoil is preparing to spud the Harpoon exploration
well later this year in the Flemish Pass, home to its Mizzen
discovery that is estimated to contain 100-200 million
barrels of oil. In June, the company said proving up the
resource potential in the Flemish Pass will be a priority
in 2013.
Harpoon is the first of three to five exploration wells and
one appraisal well that Statoil expects to drill between
the fourth quarter of this year and 2014. The semisubmersible rig, West Aquarius, is scheduled to drill
the first three: Harpoon and Cupids in the Flemish Pass,
and Federation in the Jeanne d’Arc Basin. The West
Aquarius is on loan from ExxonMobil, which will use the
semi-submersible to drill water-injector wells for Hibernia
Southern Extension.
Statoil also spent about two months completing a 3D
seismic survey this summer over two of its exploration
licences (EL 1125 and EL 1126) in the Flemish Pass Basin.
The survey spanned more than 5,700 square kilometres
of seabed. Both ELs were issued to Statoil and its partners,
Chevron and Repsol, in January of this year.
Labrador Shelf
On the exploration front, Nalcor Energy and its partners,
Petroleum Geo-Services and TGS-Nopec Geophysical,
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14 Noia
News
14
Noia
News
Noia News 15
COVER STORY Year in Review
The Cristobal Colon, the dredger that excavated the drill centre for the South White Rose satellite tieback, entering The Narrows. Photo courtesy of Husky Energy.
continued last year’s 2D seismic survey of the Labrador
Shelf. The vessel Sanco Spirit started work June 1,
acquiring more than 11,400 line kilometres of seismic
data before moving to the northeast slope off
Newfoundland in early September. That area includes
the Orphan Basin, Flemish Pass and the Jeanne d’Arc
Basin. The 2D data collected will be marketed
internationally to oil and gas companies.
In September, the offshore regulator awarded AMEC
Environmental and Infrastructure the contract to prepare
the SEA report. Public information sessions for the Western
Newfoundland & Labrador Strategic Environmental
Assessment (SEA) update were held from Sept. 30 to
Oct. 29 in Newfoundland & Labrador, Nova Scotia, New
Brunswick, P.E.I., Quebec and the French island of
St. Pierre. The SEA is scheduled for completion in 2013.
West Coast
Offshore Land Sales
An environmental assessment continues on Corridor
Resources’ proposal for a one-well drilling program on
its Old Harry prospect (EL 1105) in the Gulf of St. Lawrence
by 2015.
At the same time, the CNLOPB is conducting another
environmental review of the offshore region: an update
of the Western Newfoundland & Labrador Strategic
Environmental Assessment (SEA). It will update previous
SEAs done in 2005 and 2007, and includes the portion
of the Gulf of St. Lawrence where Corridor proposes
drilling one exploration well. An SEA is not project specific.
It examines the potential environmental implications of
a proposed program or policy decision, and is used to
assist the CNLOPB in decisions to issue exploration
licences for marine areas within the Newfoundland and
Labrador Offshore Area.
16 Noia News
Offshore land sales netted more than $116.8 million in
exploration work commitments for six parcels of seabed
this year – five in the Laurentian Sub-basin and one in
the Flemish Pass. The land sale results were announced
Nov. 1 by the CNLOPB.
Shell Canada landed exclusive exploration rights to five
of the six parcels on offer in the Laurentian sub-basin for
combined bids of $97 million. No bids were received for
the sixth parcel. All the parcels include land previously
held by ConocoPhillips on either side of the French
territorial waters off St-Pierre-Miquelon – one parcel is
on the west side of the so-called French baguette, four
parcels are on the east side. ConocoPhilips currently
holds two ELs in the Laurentian sub-basin that were
issued in 2010.
COVER STORY Year in Review
Husky Energy landed the sole parcel on offer in the
Flemish Pass for more than $19.8 million. The company is
partnered with Suncor Energy and Repsol E&P Canada.
The parcel is southeast of Statoil’s holdings in the
Flemish Pass, and it borders a pair of exploration
licences already held by Husky.
The CNLOPB will issue the new ELs in January 2013.
It’s not Shell’s first appearance in Offshore NL. The
company was previously partnered in the Orphan
Basin, where it held a 20% interest under a farm-in
agreement with ExxonMobil and Imperial Oil. Earlier
this year, Chevron announced it had new Orphan Basin
partners, Statoil and Repsol.
Construction is progressing at the Bull Arm drydock with the installation of steel skirts.
Dewatering of the drydock was completed in July. Photo courtesy of ExonMobil.
Shell was also a partner in Terra Nova before swapping
its small stake in the oilfield in 1993, for a larger share
in the Sable natural gas project off Nova Scotia.
In January, Shell won the exploration rights to four
deepwater parcels 350 kilometres south of Nova Scotia
for $970 million – the highest offshore bid amount in
the Atlantic region. Water depths in the area range
from 1,000 metres to 3,000 metres. In documents
filed with the Nova Scotia petroleum board in June,
Shell proposed carrying out 3D seismic surveys next
spring over its four new ELs in the Shelburne Basin.
West Coast
Chevron Canada expects to drill the Margaree A - 49 well in the Orphan Basin.
Photo courtesy of Chevron Canada.
Vulcan Minerals, a pioneer of oil and gas exploration
on Newfoundland’s west coast, refocused its efforts
this year on the exploration of its potash and salt
deposit in the Bay St. George Basin and on the spin-off
company, Red Moon Potash Inc. The new company
was listed on the TSX Venture Exchange in August.
Vulcan completed the sale of its petroleum interests
in the Bay St. George Basin, including an oil discovery
at Flat Bay and two gas discoveries at Red Brook and
Robinsons, to Investcan Energy Corp. for $2.5 million
and a two per cent royalty. In May, Vulcan sold its 30
per cent working interest in EL 1107 in the Hopedale
Basin off the coast of Labrador to Investcan for a cash
payment of $1.75 million and future success payments
of $500,000 if a well is drilled. Vulcan also sold its
interest in NWest Energy to Shoal Point Energy.
Shoal Point Energy and its partners are exploring
an oil-in-shale play dubbed Green Point Shale on
The Sea Rose FPSO spent a week in Conception Bay last May before heading to drydock in
Northern Ireland. Photo courtesy of Husky Energy.
Noia News 17
COVER STORY Year in Review
Newfoundland’s west coast. The company is
aiming to drill and flow oil from a sidetrack well
off its previously drilled 3K-39 well which lies in
EL 1070. Dubbed 3K-39Y, the new sidetrack will
also be drilled from land into Port au Port Bay.
One option the company is considering to flow
the well is hydraulic fracturing, which is subject
to regulatory approval. Shoal Point is also planning two additional wells in 2013 – one as part of
a farm-in agreement with Ptarmigan Energy on EL
1120, another on EL 1097R as part of a deal with
NWest Energy.
Ptarmigan Energy holds 100 per cent interest
in three exploration licences off Newfoundland’s
west coast. Two licences – EL 1127 and EL 1128
– were issued by the CNLOPB in January. The
third licence, EL 1120, was issued two years
ago. By reprocessing seismic data that
was acquired by Mobil Oil in the 1990s, Ptarmigan
has identified a pair of drill targets on EL 1120,
York Harbour and Lark Harbour. The EL is north
of the Port au Port Peninsula and it borders both
of Ptarmigan’s other offshore licences.
The C-NLOPB received bids from Shell Canada for five of the six parcels up for bids in the
Laurentian sub-basin. Map courtesy of C-NLOPB.
18 Noia News
NWest Energy and Caribe Energy, an Alberta
company with exploration property in Argentina,
announced in April they had mutually terminated
a letter of intent to amalgamate. NWest said it
would explore other oil and gas opportunities.
In March, the company also closed a stock
transaction, transferring its interest in EL 1097R
to Shoal Point Energy. If Shoal Point spuds a well
there, NWest can acquire additional stock in the
fellow junior explorer and a two per cent overriding
royalty in the property. n
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• Occupational Health & Medical
Services
• Fit Testing
training
• Confined Space Entry: Basic,
Monitor & Rescue
• Industrial High Angle Rescue
• Fall Protection
• Gas Detection
• Transportation of Dangerous
Goods (TDG)
• Joint Occupational Health &
Safety Committee (JOHSC)
• Respiratory Protection
• Safety Watch
• H2S Alive
• Flag Person
atlantic canada
cOntact inFOrMatiOn
induStrieS Served
www.hseintegrated.com
•
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Offshore Drilling & Completions
Remote Camps
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Dartmouth, NS ...... 902-468-6940
Mount Pearl, NL .... 709-739-6490
Saint John, NB ...... 506-637-9050
Toll-Free ................ 855-637-9050
Email: .. [email protected]
Lessons to
learn from
down under
Lisa Scaffidi, Lord Mayor of Perth, Australia addressed Noia members
at a luncheon held at the Delta Hotel on October 24. Mayor Scaffidi
spoke about “Lessons learned from Western Australia’s investment in
its energy future”.
Western Australia, much like Newfoundland & Labrador, has seen tremendous
growth in its natural resource industry. Since July 2011, $18 billion in new
local contracts has been awarded and another $180 billion has been
committed to other current and new projects. This almost $200 billion in
work has already translated into more than 60,000 jobs for the state and
is anticipated to add another 60,000 jobs.
But, also like Newfoundland & Labrador, the region is battling skill shortages
and erosion of local benefits in its offshore petroleum industry.
Overseas competition is occurring in areas once serviced almost entirely by
local companies, particularly in its offshore energy projects. A report by the
Western Australian government has stated that local industry participation
has decreased from a peak of 72 per cent to an estimated 45-55 per cent
in more recent projects.
“
At the end of February 2012, Western
Australia had more than 41,000 apprentices
and trainees, yet the State is still
expected to experience a major skills
shortage in coming years.
”
Mayor Scaffidi
With Asia on its doorstep, and its availability of much cheaper labour,
the prospect of losing work and contracts looms large.
Mayor Scaffidi says that her country feels strongly that the benefits of
their natural resources should come to its citizens.
“After much community discussion, an acknowledgement of the importance of
local content was made by our State and Federal Government. Major
international corporations with a strong presence in Western Australia are
also committed to delivering strong local content outcomes. Because we
know mining and offshore oil & gas booms do not last forever it is
imperative for us to diversify the economy, support our local businesses
and create opportunities to skill our community.”
Also similar to Newfoundland & Labrador, Perth has only a small percentage of
the national population, and does not have the voting power to always
sway federal government decisions in its favour. This means that they
have to maintain strong, positive relationships with other levels of
government, and be very strategic in their thinking and planning.
Mayor Scaffidi and other mayors from the 19 World Energy Cities were
in St. John’s for their 2012 annual general meeting, which was hosted by
the City of St. John’s and current WECP President, Dennis O’Keefe. n
20
Noia News
Lisa Scaffidi,
Lord Mayor of Perth, Australia.
World energy
cities meet in St. John’s
WECP Partner Cities
Aberdeen, Scotland UK
Atyrau, Kazakhstan
Members of the World Energy Cities
Partnership (WECP) gathered for their
2012 annual general meeting at the
Sheraton Hotel Newfoundland in
St. John’s from October 23 – 25, 2012. opportunity to learn and share knowledge
with one another, and make business
and academic connections through
networking events that compliment
the meeting.
The WECP’s 19 member municipalities
are internationally recognised energy
capitals from around the globe. They
meet twice annually, at a working
meeting in May in Houston and for an
AGM in a different member city each year.
This year’s meeting was hosted by
St. John’s Mayor Dennis O’Keefe,
who has been serving as the partnership’s
president since being elected last
December in Doha, Qatar.
Both gatherings are scheduled to
coincide with major oil and gas trade
shows around the world, which also
are used to broaden the WECP network
of contacts, assist businesses with
development opportunities and promote their organization as a pioneer in
worldwide energy industry development.
In St. John’s this year, WECP participants
attended Ocean Innovation 2012,
hosted by the Marine Institute of
Memorial University, to hear about
issues and innovations in the areas of
maritime safety, efficiency of operations
and sustainable ocean management.
WECP annual meetings provide the
The World Energy Cities Partnership
was established in Houston in 1995,
with founding member cities Aberdeen,
Houston, Perth, Stavanger and Vung
Tau.
The partnership encourages
the sharing of best practices among
member cities on common municipal
challenges and strives to increase
business development opportunities
among companies from partner cities.
The WECP also provides a worldwide
network of industry support services
and resources, and facilitates trade
missions for local businesses to travel
to member cities and capitalize on
business development opportunities.
Next year’s annual meeting will be
held in Dongying, China. n
Calgary, Canada
Dammam, Saudi Arabia
Daqing, China
Doha, Qatar
Dongying, China
Halifax, Canada
Houston, USA
Luanda, Angola
Malabo, Equatorial Guinea
Perth, Australia
Port Harcourt, Nigeria
Rio de Janeiro, Brazil
San Fernando, Trinidad & Tobago
St. John’s, Canada
Stavanger, Norway
Tomsk, Russia
Villahermosa, Mexico
Noia
News 21
21
Noia
News
Women Entrepreneurs
provide insight and inspire
Noia and NLOWE partner to present sessions for women in oil & gas
Noia partnered recently with the Newfoundland and
Labrador Organization for Women Entrepreneurs
(NLOWE) to present “Untapped Resources: Women in
Oil & Gas”, three full-day sessions focused on helping
women business owners enter the oil & gas supply chain.
“Untapped Resources” took place in three locations –
Corner Brook, Clarenville and St. John’s.
Participants in the sessions were local women entrepreneurs.
In the morning they took part in concurrent workshops
designed to allow women with a business idea to assess
their entrepreneurial potential and, for women already
in business, to assess the potential of their business to
enter the oil and gas supply chain.
In the afternoon, delegates heard from an expert panel
consisting of representatives from NLOWE, Noia, and
WorleyParsons who discussed the challenges and benefits
of navigating the oil & gas supply chain. Kiewit Kvaerner
Contractors also participated in the St. John’s session.
The luncheon keynote in Corner Brook was delivered by
Anne Whalen, President and CEO of Seafair Capital Inc.
Anne provided practical advice for women who want
to work in the oil & gas industry as well as sharing her
insights on being a female in a male dominated industry.
22 Noia News
She spoke about learning her biggest lessons from her
mistakes and the importance of getting out at networking
events such as the one Noia holds for industry.
During Clarenville’s luncheon keynote address, PanGeo
Subsea CEO and co-founder Moya Cahill told participants
of her experiences as a young engineer navigating a
male-dominated industry, both in Canada and abroad.
She passed on some key discoveries – “nuggets” of learning – that she gathered along the way and have
contributed to her success – and continue to guide her
– as a businesswoman. Peg (Buckingham) Hunter, Memorial University School
of Business alumna and Vice-President of Marketing &
e-commerce with Home Depot Canada, delivered the
St. John’s luncheon keynote. Her presentation, entitled
Pearls in My Pocket: Leadership Lessons, explored
lessons in leadership she has gleaned from over 30
years’ experience, on her journey from her childhood
home near Rawlins’ Cross in St. John’s to an executive of
the world’s second largest retailer. Peg provided practical
perspectives on the need for leadership development
within organizations and thoughts on women developing
their own personal leadership potential, while avoiding
some of the traps women set up for themselves along
the way. n
INSIDE NOIA Noia supports development of Muskrat Falls
Noia supports development
of Muskrat Falls
In early November, Noia announced its official support
of the Muskrat Falls development. Robert Cadigan,
President & CEO of Noia, said the support for the project
was based on Noia’s review of the analysis of the project.
“
The Muskrat Falls
development will not
impede the future development
of gas off our shores for the
benefit of the citizens of
Newfoundland & Labrador
and Noia members.
”
Robert Cadigan
President & CEO of Noia
“Noia’s Board of Directors has carefully reviewed the
facts and figures related to Muskrat Falls and supports
it as the lowest cost option for power replacement for
the citizens of our province. Nalcor Energy and the
Government of Newfoundland & Labrador conducted
a thorough analysis, and reviewed all the options. Noia
is satisfied that the process and information provided
is valid.”
Noia supports, as a key action of the Energy Plan, the
re-investment of provincial government revenues from
non-renewable resources into the construction of
renewable infrastructure. The main driver for the
development of Muskrat Falls is the forecast of a capacity
deficit (inability to meet peak demand) in 2015 with energy
deficits (inability to meet annual load requirements) in
2017. The project will provide opportunities in Newfoundland
and Labrador for future industrial activities that require
large quantities of reliable and predictably-priced
electricity, such as industrial fabrication for the oil and
gas industry.
The provincial government released the Ziff Energy
Group analysis on the Grand Banks gas and LNG option.
The report concluded that liquefied natural gas or a
Grand Banks pipeline would not be an economically
feasible option for the electricity needs of the province.
“The Muskrat Falls development will not impede the future
development of gas off our shores for the benefit of
the citizens of Newfoundland & Labrador and Noia
members,” said Mr. Cadigan. n
Noia News 23
Pat George, FMC speaks at Noia’s Fall Seminar
Contractors and operators addressed Noia’s fall seminar
on November 14, taking a closer look at evolving subsea
technologies and their application offshore Newfoundland
& Labrador.
Delving
deeper into
subsea
technology
Pat George of FMC outlined subsea technology drivers,
including frontiers such as deep water and harsh environments,
as well as the push for increased oil recovery (IOR). He
also pointed to several international subsea developments
which are pushing the envelope for what is possible.
George noted that longer distance pipelines could open
up opportunities for development of natural gas offshore
Labrador in the future. George also expressed FMC’s
commitment to using Newfoundland & Labrador as a
resource for global R&D; the company is constructing a
large facility in Mount Pearl to build on its R&D capabilities
for future developments in Atlantic Canada, Greenland
and the Beaufort Sea.
Jason Muise of Technip provided an overview of his
company’s subsea advancements, many of which he says
will facilitate development of more marginal fields. Muise
discussed the evolution of subsea pipelines, noting that
global benchmarks for pipeline distances are expanding
all the time. The global benchmarks have increased from
less than 5 km to 10 km in the last 10-12 years. Recent
North Sea developments are extending the limits even
further. Muise pointed to Technip’s Electrically Trace
Heated Pipe in Pipe (ETH-PiP) technology as a further
advancement, enabling longer tieback lengths (35-40 km)
while providing enhanced oil recovery opportunities.
Muise said that these types of technologies may expand
the area on the Grand Banks that could be tied back to existing
facilities. He added that the ETH-PiP technology is very
24 Noia News
Well over 200 Noia mambers attended the seminar and luncheon.
complementary to gravity base wellhead platforms, an
option being explored by Husky Energy for future White
Rose development. Muise and other speakers noted
that many of these technologies demand a great deal of
power, something which operators will have to consider
when making long-term development decisions.
Tor Gunnerød of Statoil rounded out the morning with
a look at five generations of subsea equipment and a
discussion of the improved technology that is contributing
greatly to increased recovery in the North Sea. Recovery
factors there now average 40-55 per cent, in large part
due to subsea processing as a major IOR driver.
Brian Rogers of Subsea 7 also discussed some subsea
developments which are helping marginal fields. He
particularly highlighted the Bundle towed pipeline
solution which he says could be applicable offshore
Newfoundland & Labrador, as well as an Autonomous
Inspection Vehicle with applications for ice covered
waters. He also affirmed the company’s commitment to
engaging the local community in its R&D efforts.
The seminar ended with a keynote luncheon address
by Nalcor Energy CEO, Ed Martin. He explained the
demand analysis and rigorous evaluation process used
to assess all possible options for additional power. The
clear winner - based on criteria such as security of supply
and availability; cost to rate payer; environmental
considerations; risk and uncertainty; and financial
viability and non-regulated elements – was the Muskrat
Falls option. He also noted the huge impact the project will
have on the province as a civil construction job. He assured
the audience, however, that Nalcor remains committed
to development of natural gas offshore Newfoundland
when the “demand equation” makes sense.
Operators Husky Energy and Statoil addressed the
seminar with their perspectives on subsea technology.
Bill Hillier of Husky outlined the extensive subsea work
that has taken place at White Rose, including details of
the North Amethyst and Southern White Rose extensions.
He highlighted recent and current development work
and noted that 30 people are now focused on subsea
development in the local Husky office.
“When the right time comes we’ll be there and actively
participating.” n
Upcoming Events
December 5, 2012
Noia Networking Social
January 31, 2013
June 17 – 20, 2013
Member Holiday Reception
Noia Annual
General Meeting
Noia Play on the Edge
Conference
Sheraton Hotel St. John’s
Sheraton Hotel St. John’s
St. John’s Convention Centre
www.noia.ca
Noia News 25
Pictured (L to R) Marty Gaulin, WorleyParsons & 2012 Hibernia Commemorative Scholarship Selection Committee member; Brandon Fitzpatrick, 2012 Hibernia
Commemorative Scholarship recipient; Doug Youden, Upstream Solutions Inc. & 2012 Hibernia Commemorative Scholarship Selection Committee member; Tim
Lawrence, Past-Chair, Noia Board of Directors.
Noia announces 2012
Hibernia Commemorative
Scholarship winner
Noia announced the recipient of the Noia - Hibernia
Commemorative Scholarship for this academic year
at its networking social held at the Sheraton Hotel
November 14. Brandon Fitzpatrick of St. John’s was
named the winner. Brandon is a recent graduate of
Bishops College, now attending Memorial University
pursuing a degree in Engineering.
The scholarship commemorates the first major
milestone of Newfoundland & Labrador’s petroleum
industry - production of first oil from the Hibernia field
on November 17, 1997. Established with the generous
support of the provincial oil and gas industry, this
$1,000 scholarship is awarded annually to a graduating
high school student in Newfoundland & Labrador who
is entering post-secondary studies with the intention
to pursue a petroleum-related career. The scholarship
is awarded to the student who best meets academic,
extra-curricular and needs criteria.
26 Noia News
Noia Past-Chair Tim Lawrence said, “Brandon impressed
the selection committee with both his academic
achievements and his many extracurricular and community
activities. Our industry strives to attract well-rounded,
engaged, local youth and Brandon is an excellent
representative of the kind of home-grown talent we need
to ensure sustained employment by Newfoundlanders &
Labradorians.”
The Noia - Hibernia Commemorative Scholarship was
established in 1997 with support from the following
organizations: AMI Offshore; AOC Brown & Root Canada;
United Kingdom Department of Trade and Industry/British
Consulate General, Toronto; Coflexip Stena Offshore;
Elsag Bailey (Canada) Ltd; Fabcon Canada Limited;
Halliburton Energy Services; Hibernia Management &
Development Company Ltd; Morrison Hershfield Limited;
Noia; Noble Drilling (Canada) Ltd; PanCanadian Petroleum
Limited; PCL Industrial Constructors Inc and PetroCanada-Terra Nova Project. n
HESQ FOCUS Offshore safety a team effort
Offshore safety
a team effort
From poring through documentation in her downtown St. John’s office
to inspecting equipment on offshore installations in the North Atlantic,
no one could claim that Kelly Weir’s job is not dynamic.
As a senior safety officer with the Canada-Newfoundland and Labrador
Offshore Petroleum Board (C-NLOPB), Weir is one member of the
board’s safety department which is tasked with overseeing the oil
operators’ management of safety matters in the Newfoundland &
Labrador offshore petroleum industry.
Weir began her career with the C-NLOPB as a mechanical engineering
work-term student before being hired as a safety officer 12 years ago.
Recently promoted to senior safety officer, she is part of a team that
includes the Chief Safety Officer, Lead Senior Safety Officer, three senior
safety officers and four safety officers. The team is complemented by
the expertise of safety and conservation officers in other departments,
as well as outside technical advisors (e.g. aviation, drilling and security).
Members of the safety department come from a variety of backgrounds,
including engineering, occupational health and safety, environmental
and emergency response. Weir says the diverse backgrounds are an asset.
“We all have a broad mandate and usually if we run up on any issues we
call the team together and consult one another to see how we can address
this or to determine if we need to bring in additional expertise.”
Extensive Training
Safety officers receive a wide variety of training. Certification training
involves all the certification needed to go offshore, including Basic
Survival Training (BST), Workplace Hazardous Materials Information
System (WHMIS), H2S Alive (a course for those who could be exposed
to hydrogen sulphide in the petroleum industry), First Aid and CPR.
Many occupational health and safety courses are also required, including
fall protection, confined space entry, respirator fit and basic electrical
training. Technical training includes areas such as well control, ballast
control and stability, equipment design and training on various aspects
of drilling rigs and FPSO’s.
CNLOPB Senior Safety Officer Kelly Weir at work.
Photo courtesy of the Canada-Newfoundland and
Labrador Offshore Petroleum Board.
“We’re not just focused on occupational health and safety hazards, we’re
also looking at major hazards and the equipment processes, the things
that need to be in place to prevent fires and explosions, collisions – the
Noia News 27
HESQ FOCUS Offshore safety a team effort
major things that could happen offshore,” says Weir.
Weir says safety officers also receive training to conduct
two types of accident investigations. They train through
the RCMP for cases where the Board may be looking to
prosecute, learning to take witness statements, warned
statements, and the steps involved in going in under
warrant.
Root cause analysis training is a tool that aims to find the
underlying causes of an incident. For example, an
investigation report may indicate that a person wasn’t
aware of a hazard. In this case training should have been
provided to the individual and the company should
have had a procedure in place. Further investigation is
warranted to see why these things were missed.
“Basically, if you get to the real root cause of an accident
and you address that, you prevent other similar
incidents from occurring. If you only focus on the
surface, you’re only dealing with that particular incident,
you’re not preventing others,” explains Weir.
Safety officers are also required to complete the Canadian
Registered Safety Professional (CRSP) designation, and
management system auditing training.
Safety Plan Assessments
place. Depending on the type of work activity, operators
may start the review process with the C-NLOPB a year or
more in advance to get an overview of the jurisdiction’s
regulations and guidelines before submitting a safety
plan. The final document describes the hazard
identification, risk assessment process that they have
gone through and the resulting training, procedures
and equipment necessary to ensure that risks are as
low as practical. Weir says operators must also outline
a safety management system which ensures that checks
and balances are in place.
“
Basically, if you get to the
real root cause of an accident
and you address that, you prevent
other similar incidents from
occurring. If you only focus on
the surface, you’re only dealing
with that particular incident,
you’re not preventing others.
”
This extensive training is called upon in a number of “When they submit that safety plan, we have checklists.
areas. Safety officers are first and foremost involved in We review that against the regulations, guidelines and
verifying that operators have adequate safety plans in industry best practices.”
28 Noia News
(L-R) CNLOPB Safety Officers Ryan Brown and Kelly Weir. Photo courtesy of the Canada-Newfoundland and Labrador Offshore Petroleum Board
All offshore installations are visited as part of the safety
assessment. Safety officers conduct pre-approval audits
to verify that the processes, equipment, training and
procedures outlined by the operator are in place.
Ongoing Monitoring
Once offshore operations are underway, ongoing
monitoring takes place. Joint occupational health and
safety committee meeting minutes are reviewed as part
of this process to make sure that meetings are being
held on a regular basis and that proper processes are
being followed.
“This can be a long process for something coming in as
a new build for this jurisdiction, like Hibernia, Terra Nova
or SeaRose; you might do six pre-approval audits before
you let them come in because you’re breaking out each
one of the elements of their safety system and reviewing “If we identify any issues of that process we’ll include that
on the list of items to follow up on the next visit.”
it,” explains Weir.
“Each audit could take upwards of five days depending
on where you have to go; it’s pretty extensive.”
The board also reviews the extensive information contained
in daily reports, including the number of personnel onboard, quantities of fluids (fuel, drilling fluids, etc.), as
well as lists of drills and tests being conducted.
The operator also has to do its own auditing and reviews
and is required to submit a Declaration of Fitness – a
document that states that all the personnel are qualified, “It’s basically a task by task of what they are doing on the
all the equipment systems are adequate, and operating facility. If there’s anything that pops out that is immediate
procedures are in place and will continue to be for the we’ll follow up on it with the operator right away. If it’s
duration of their program. Concurrent to that, a Certificate something that we have a question about we might wait
of Fitness must be issued by a certifying authority (i.e. until the next visit to see what that was all about.”
classification society) which focuses on equipment and
Safety officers are also responsible for reviewing
maintenance issues.
incident investigation reports and receiving and following
“We won’t issue them an authorization until they have a up on any complaints. When necessary, the team conducts
certificate of fitness and declaration of fitness and the investigations. Once the board is notified of an incident,
safety officers have gone through their checklist as well the operator has 21 days to investigate and submit a
final report.
for their safety assessment.”
All board departments must agree on the final approval. “We review that in extensive detail and if we don’t agree
Noia News 29
HESQ FOCUS Offshore safety a team effort
with the root causes that they’ve identified we’ll point that out to them. Then if
we agree with it, when we go onboard the next time we’ll follow up to see that
they’ve actually taken action,” says Weir.
Some situations require immediate action to prevent another incident from
occurring.
Audits and Inspections
To ensure an ongoing commitment to safety, safety officers also conduct audits
and inspections verifying that operators comply with their safety plans and
with the board’s regulatory requirements. The scope of these audits varies,
as does the preparation time required – anywhere from one week to one
month. Operators are notified about two weeks in advance of an audit and if
the scope is within a specific area, it is usually unannounced.
Audits can be conducted in several areas. Audits of the management system
include the incident investigation process, auditing process and hazard
identification/risk assessment process and emergency response drills.
Procedural audits include areas such as helicopter operations, drilling operations,
marine operations, materials handling, physical environmental monitoring and
emergency response procedures.
“If their procedures say they’re going to perform a task a certain way, we’ll go
out and watch and see that they’re actually doing it the way they said they were
going to do it,” notes Weir.
Equipment and maintenance audits involve reviewing the operation and
maintenance program of selected pieces of equipment to ensure regulatory
compliance. Still other audits look at the training program for individuals and
confirm that there are adequate numbers of competent people onboard to
carry out all duties safely.
Audits and inspections can take anywhere from two to five days, depending on
the scope. A non- conformance report is issued at the end of each visit noting any
items of non-compliance to the regulations and any items that don’t comply
with the operator’s own safety plan commitments or procedures. The operator
has three weeks to provide a written response to the safety officer’s report,
though hazardous situations are addressed immediately.
“If we happen to be onboard and an operator was not going to address
something then we would issue an order respecting dangerous operations,”
explains Weir. “That would either shut down a piece of equipment and,
depending on that piece of equipment, it could actually result in a shutdown
of that facility. As part of that order we would specify what would need to be
done to address that and they’d have to provide the documentation or we’d
have to go offshore and verify it.” In the case of severe incidents, formal
investigations or inquiries are required.
“But with all of this, we’re focused on the proactive end,” says Weir. “We don’t
want anybody to be injured so we’re focused on identifying issues before they
become problems and having those addressed.” n
30 Noia News
INDUSTRY NEWS Increasing Oil Recovery
Increasing
Oil Recovery
Investments in research and development (R&D) may
hold the key to producing additional oil offshore
Newfoundland & Labrador.
Recovery factor is a measure of how much of the oil
originally in place in a field is ultimately produced.
Globally, about 35 per cent of oil in place is recovered
from producing fields, though the rate for conventional
fields varies from 20-40 per cent while heavy fields average
about 10 per cent.
The recovery rate for the Norwegian continental shelf
as a whole is 47 per cent; Statoil has a 50 per cent recovery
rate for its fields in that region. Statoil announced in
September that it aims for a 60 per cent recovery factor
at its fields on the Norwegian continental shelf, which
could add more than 3 billion barrels to its reserves. Last
year, Statoil increased its recovery rate from 49 per cent
to 50 per cent offshore Norway, which constituted 327
million extra barrels.
In keeping with this global trend towards increased
recovery rates, Hibernia Management and Development
Company Ltd. (HMDC) announced in October that it is
investing $11.8 million in laboratory equipment and
research for enhanced oil recovery (EOR) at Memorial
University, enabling a new area of research in the province.
“We are working with the university to develop enhanced
oil recovery research capacity and capability in the province,”
said Jamie Long, president, HMDC. “Our ultimate goal
is to increase oil recovery offshore Newfoundland &
Labrador.”
EOR refers to techniques that can be used to increase
the amount of crude oil extracted from an oil field.
Advanced EOR methods are not currently in use in the
Newfoundland & Labrador offshore industry.
The new laboratory equipment will be used to examine
various EOR techniques in the context of application to
Construction Support
Site Investigation
Subsea Positioning
Industrial Measurement
Geotechnical/Geophysical
ROV-based inspection surveys
Metocean
Hydrographic
APAC
32 Noia News
•
Australia
•
Brazil
•
Canada
•
Italy
•
UAE
•
UK
•
USA
INDUSTRY NEWS Increasing Oil Recovery
Newfoundland’s harsh offshore
environments. EOR implementation is complex, requiring
significant laboratory research
and field testing.
Providing arctic engineering
expertise for over 25 years:
“Implementing these techniques
at the Hibernia field could
increase ultimate recovery
while developing a pool of
locally trained experts in
the process,” said Dr. Gary
Kachanoski, president and
vice-chancellor,
Memorial
University of Newfoundland.
“This type of project speaks
to the value that research at
Memorial creates for the
future of our province and
our country. It has the potential
to set the foundation for an
entirely new phase of the oil
and gas industry in our province.”
Dr. Lesley James is an assistant
professor of process engineering
in the Faculty of Engineering
and Applied Science and the
Chevron Chair in Petroleum
Engineering. She will be the
principal investigator for the
research study and will lead
the Hibernia Enhanced Oil
Recovery project. She said
HMDC’s investment will have
far reaching impact on teaching
and research at Memorial.
“Collaborating with HMDC
on this project is an incredible
opportunity. It is a chance to
contribute to an area of research
that is technically and fundamentally challenging and
that adds value to Memorial,
the oil and gas industry and
the province of Newfoundland
and Labrador,” she said. n
•
Field Development
•
•
Subsea Development
Studies
Pipeline FEED and
Design
•
Project Management
•
Construction Support
•
FPSO & GBS Design
www.intecsea.com
NSB GROUP
NEW ENERGY AT THE HELM
NSB announces appointment of new CEO, Michael Critch
Owners, Barry Bridger and William
Newton, are pleased to announce that
Michael Critch, P. Eng, has joined NSB
Energy as Owner and Chief Executive
Officer (CEO). Mike is a well known
leader in the oil & gas sector, having
held executive positions with
international firms. He has a proven
track record of building motivated
teams that deliver successful projects,
both locally and globally. He is currently
Chair of the Board of Directors for NOIA
- the Newfoundland & Labrador Oil and
Gas Industries Association, Canada’s
largest offshore oil & gas association.
Mike’s reputation for dedicated service
is one of many powerful assets that he
brings to his new role as CEO of NSB,
where he is responsible for the daily
operations of the company.
For over 10 years, the NSB Group has
helped clients in the natural resource
sector manage their multi-billion dollar
projects with dedicated project
professionals and quality engineering
support. NSB is proud to be a local
company and equal opportunity
employer, committed to its employee
and customer success.
NSB Energy | Nurturing Success
Suite 608, Atlantic Place
St. John’s, NL
nsbenergy.com
Noia News 33
INDUSTRY NEWS Strategic Environmental Assessment Update team visits 11 locations
SEA Update team
visits 11 locations
In October the C-NLOPB held public information sessions
for the update of its Western Newfoundland & Labrador
Strategic Environmental Assessment (SEA). The initial
SEA for this portion of the Gulf of St. Lawrence offshore
western Newfoundland was published in 2005 and
amended in November 2007.
A SEA is a broad-based approach to examining the
potential environmental implications of a proposed
program or policy decision. The input received in these
meetings will assist the Board in decisions to issue
34 Noia News
exploration licences for marine areas within the western
Newfoundland and Labrador offshore area.
In total, eleven meetings were held in five provinces;
four on the island of Newfoundland (Port aux Basques,
Stephenville, Corner Brook, Rocky Harbour), four in
Quebec (Blanc Sablon, Gaspe, Magdalen Islands, Havre
Saint Pierre) and one in each of Nova Scotia, Prince Edward
Island and New Brunswick. People who attended had
opportunity to view documentation and speak with
C-NLOPB representatives.
INDUSTRY NEWS Strategic Environmental Assessment Update team visits 11 locations
Noia’s perspective
Noia feels these public information sessions are important
to the Newfoundland & Labrador oil & gas industry and
its future development off our shores. Further, the
association welcomes a process designed to ensure
that the industry continues to operate in the safest and
most environmentally-responsible manner possible.
Bob Cadigan, Noia’s President & CEO, attended the
SEA session in Corner Brook. He feels the western
Newfoundland & Labrador offshore area has great
potential for additional hydrocarbon resource development.
“Our industry can conduct responsible operations in the
Gulf of St. Lawrence, just as we have in other areas off
the East Coast of Canada. We have a strong, positive track
record of offshore operations with safe practices and
good communications between industry and stakeholders.
Development in the Gulf of St. Lawrence will be no
different,” he said.
“It is important to the Canadian people, the future of
Newfoundland & Labrador – particularly the economic
development of our west coast – and the provincial
and national economies to continue to explore, find
and secure additional developments for coming
generations.”
Cadigan feels that Canada is leading the way in terms
of operating in a safe and responsible manner in all its
offshore activity. “Our country has a robust regulatory
environment modelled after regulatory regimes of countries
such as Norway. And our industry advocates for the
application of best practices and efficient regulations to
ensure responsible development,” he said. n
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Noia News 35
The Hibernia platform, offshore Newfoundland & Labrador.
Newfoundland &
Labrador-based oil & gas
R&D moves forward
If it seems that the Research & Development Corporation
of Newfoundland & Labrador (RDC) is always in the news
these days, you’re not far off. Since mid-September, the
body has made several major announcements of funding
programs or award recipients, and the oil & gas sector
has been prominently featured.
Noia companies receiving Proof of Concept Funding
On September 14, it was announced that four Noia
companies were among those successful in this category,
which reduces technical and financial risk of precommercial R&D.
Triumph Atlantic ... received $72,282 in funding to produce
a prototype device to create a seismic wave event for
the purpose of petroleum exploration. The device will provide
a more cost effective method of acquiring seismic data
36 Noia News
than current seismic creation sources while having the
added ability to generate seismic signals in currently
inaccessible and challenging terrains. Total project cost
is $72,282.
Virtual Marine Technology ... received $231,917 in funding
to build a novel simulation platform that will simulate
marine bridge navigation equipment and enable
personnel to gain valuable experience in a safe,
controlled training environment using the actual bridge
equipment. Total project cost is $422,232.
Oceans Ltd ... received funding to build on previous
research regarding the potential health promoting
properties of seaweeds from Newfoundland & Labrador.
RDC’s investment is $167,012 of a total project cost
of $296,026.
INDUSTRY NEWS Newfoundland & Labrador-based oil & gas R&D moves forward
Technip Canada Ltd ... received a contribution of
$243,101 to better determine hydrodynamic loads in
changing sea conditions and therefore the lifting
requirements of crane systems used to transfer heavy,
large, multi-shape objects from service vessels into the
sea. Total project cost is $455,243.
Other funding advancing the industry
RDC’s Leverage R&D program provides funding for
academic-led research and development in areas
relevant to both industry and the Newfoundland and
Labrador economy. On October 9, funding was announced
for the following projects which have relevance to the oil
& gas industry:
Three dimensional Ichnology and Shale Gas Reservoir
Fabrics: a new angle on a new hydrocarbon resource ...
$290,675 was awarded to Dr. Duncan McIlroy, Department
of Earth Sciences, Memorial University. Details of the
research can be found at www.ichnology.ca. This RDC
funding leverages more than $830,000 in additional
funds from other sources.
Virtual Environments for Knowledge Mobilization ...
$500,000 was awarded to Dr. Brian Veitch, Faculty
of Engineering and Applied Science and Dr. Scott
MacKinnon, School of Human Kinetics and Recreation,
Memorial University. The research focus is the training
of personnel who work in the offshore petroleum and
shipping industries with the aim of improving safety of
life at sea. This funding leverages more than $3.2
million from other sources, including $2,645,442 from
ACOA’s Atlantic Innovation Fund.
Recipients of Ignite R&D funding were also announced
on October 9. This program attracts highly-qualified
academic researchers and builds new research and
development capacity in areas relevant to both industry
and the Newfoundland and Labrador economy. The
following successful research applications are relevant
to our offshore industry:
Corrosion resistance of high performance self consolidating
concrete in offshore structures ... $96,063 to Dr. Assem
Hassan of the Faculty of Engineering and Applied Science
of Memorial University.
Noia News 37
INDUSTRY NEWS Newfoundland & Labrador-based oil & gas R&D moves forward
Internal Waves and Mixing ... $100,000 to Dr. James Munroe
of the Department of Physics & Physical Oceanography
of Memorial University.
Probabilistic Modeling of Spalling Fracture and High
Pressure Zone Behaviour for Estimation of Iceberg Impact
Loads for Offshore Structure Design ... $100,000 to
Dr. Rocky Taylor, Centre for Arctic Resource Development,
C-CORE, Memorial University. This research also leveraged
in-kind contributions from the National Research Council
of Canada - Institute for Ocean Technology ($8,000),
Memorial University ($3,000) and the Centre for Arctic
Resource Development ($89,000).
Surface Failure in Ice Structures Interactions ...
$90,500 to Dr. Bruce Colbourne, Faculty of Engineering
and Applied Science, Memorial University.
Development of Biosurfactant-Based Technologies
for Enhanced Remediation of Oil Spill Sites in Atlantic
Canada ... $100,000 to Dr. Baiyu Zhang, Faculty of
Engineering and Applied Science, Memorial University.
Enhanced Technology for Ocean Remote Sensing Using
Microwave and High-frequency Radars ... $100,000 to
Dr. Weimin Huang, Faculty of Engineering and Applied
Science, Memorial University.
Automatic Solvers for Optimization Problems in Ocean
Technology and Design ... $98,500 to Dr. Antonina
Kolokolova, Department of Computer Science,
Memorial University.
Capturing the Fluid Phases at the Pore Scale ...
$99,500 to Dr. Lesley James, Faculty of Engineering and
Applied Science, Memorial University.
Remote Monitoring of Offshore Process and Equipment ...
$91,500 to Dr. Syed Imtiaz, Faculty of Engineering and
Applied Science, Memorial University.
Non-linear Random Vibration Analysis of Gears ...
$100,000 to Dr. James Yang, Faculty of Engineering and
Applied Science, Memorial University.
RDC’s Collaborative R&D funding is designed to
increase research and development partnerships and
collaboration between academia and industry in areas
relevant to the Newfoundland and Labrador economy.
These projects are pertinent to the offshore industry:
Collaborative Research with the Integrated Marine
Observing System (IMOS) Autonomous Underwater
Vehicle Facility, Sydney, Australia ... $9,000 to Dr. Ralf
Bachmayer, Faculty of Engineering and Applied
Science, Memorial University. This funding leveraged
an additional $9,710 from the Natural Sciences and
Engineering Research Council of Canada.
STePS2 - Sustainable Technology for Polar Ships and
Structures ... $800,000 to Dr. Claude Daley, Faculty of
Engineering and Applied Science, Memorial University.
This research will be performed in collaboration with
the National Research Council. Other funding partners
bring the total cash and in-kind value of this research to
$7.15 million over five years. n
Interested in the more technical details of these research projects?
Visit www.rdc.org/news/index.htm
38 Noia News
Rio de Janeiro, Brazil
Export opportunities in
Brazil’s oil & gas industry
From September 17–20, a delegation of Noia member
companies visited Rio de Janeiro, Brazil, as part of an
Atlantic Canada delegation participating in this year’s
Rio Oil & Gas Expo and Conference. The group, which
included Terry Hunt, Noia’s Project Manager – Supply
Chain, learned first-hand of the tremendous opportunities
arising from the recent enormous oil and gas discoveries
offshore Brazil.
50 per cent of its 200 million people are in the 25–45
age bracket, and 85 per cent of them live in its cities.
With the explosion in oil and gas development work,
as well as ongoing mining, manufacturing and service
sectors, the percentage of households earning $15,000
- $35,000 US per year has increased to 22 per cent in
2010 from 12 per cent in 2004, and continues to climb
at an aggressive rate.
Established in 1982 and taking place every two years,
the Expo is an opportunity for Brazilian and foreign
companies to display their products and services. Similarly, the Conference stands as a prominent place for
networking, discussing major technological issues and
promoting innovative ideas. The event – in combination
with the fact that the state of Rio de Janeiro contributes
80 per cent of the oil produced in the country and 50
per cent of the total gas production – has contributed
to building Rio de Janeiro’s reputation as the ‘Brazilian
oil capital’.
While security is an issue in Rio, the government is
working hard to control the level of crime as it prepares
for the World Cup of Soccer in 2014 and the Summer
Olympics in 2016. Preparations for these two events
alone will create thousands of jobs to develop the
necessary infrastructure.
Brazil is the eighth largest economy in the world and the
second largest in the Americas, after the United States.
Doing business in Brazil – coming in new
Development of the infrastructure needed to harvest
Brazil’s oil resources will test the country’s skilled labour
pool and business expertise. The country simply does
not have sufficient resources to handle it unassisted.
Help will have to come from outside the country.
Noia News 39
INDUSTRY NEWS Export opportunities in Brazil’s oil & gas industry
However, before you jump on a plane and head down
with your products and services in hand, Terry Hunt,
Noia’s Project Manager – Supply Chain, cautions there
are a few things you must know.
“To be successful in Brazil’s oil industry you need to have
a connection, either directly or indirectly, with oil giant
Petrobras. Whether you wish to supply directly or
indirectly to the company, you have to go through a
registration process that is bureaucratic and can take up
to 18 months to complete.”
Local content
During the visit, Terry had the opportunity to meet with
the National Agency of Petroleum, Natural Gas and Biofuels.
ANP is Brazil’s national regulator, similar to the CanadaNewfoundland & Labrador Offshore Petroleum Board.
“Many procurement packages have the local content
expectations pre-defined. After a foreign company has
cleared the Petrobras registration process and begins to
bid on work, it has to state its per cent of local content. If a
bid is accepted, the company is bound by the numbers
submitted. During the course of the project, a certifying
local content authority (such as DNV) will audit the firm’s
local content numbers and measure it against what is
acceptable. If the number is lower than initially stated,
there will be a penalty to be paid.”
Terry says that although Brazil’s local content rules are
probably one of the most regimented and monitored in
the world, “I had the opportunity to speak with a couple
of international companies currently doing work in Brazil
and they agreed that as long as you follow the process
and abide by the rules, you can be successful.”
Partnering is key
“ANP provided me with a high level overview of local
content and how it is measured. Although it’s determined
through a very complex formula, it is measurable,”
he states.
Although the process is strict, the quickest and perhaps
easiest way to get a product into the Brazilian market is
to team up with a Brazilian firm. Local companies are
eager to engage Canadian companies and partnering
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40 Noia News
INDUSTRY NEWS Export opportunities in Brazil’s oil & gas industry
is highly encouraged. However, Terry Hunt strongly
recommends that potential partners be solidly researched
to ensure their business interests are complementary
with yours.
“
I had the opportunity
to speak with a couple of
international companies
currently doing work in Brazil
and they agreed that as long
as you follow the process
and abide by the rules, you
can be successful.
”
Terry Hunt
Noia’s Project Manager – Supply Chain
“At Rio O&G 2012, our Atlantic Canada trade booth
was inundated by Brazilian firms of all kinds – lawyers,
independent consultants, engineers – all extremely eager to market their businesses to us. In some cases, it
didn’t matter what product/service we had, they wanted
to partner anyway. I’d recommend that NL companies
proceed cautiously and confirm that potential Brazilian
partners are knowledgeable about your product, but –
perhaps most importantly – that they know who your
end client will be, and be in a position to open the doors
to those clients for you.”
Although Brazil has created strict local content rules
for its oil and gas industry that are deep in process and
measurable, and will take time and effort to navigate,
Terry feels that the opportunities in Brazil are boundless
and present a great reward to those that are courageous
enough to go through the process, take calculated risks,
and establish the right contacts.
“The Brazil supply chain cannot handle the amount of
work to be done so they need international help,” he
says. “There are Newfoundland & Labrador firms doing
business in Brazil right now, and there are definitely
opportunities for others.”
The Atlantic Canada Mission to Brazil was supported
by the Canada/Atlantic Provinces Agreement on International Business Development (IBDA). The IBDA is a
federal/provincial agreement between the Government of
Canada (ACOA, Foreign Affairs and International Trade
Canada, and Industry Canada) and the four provincial
governments in Atlantic Canada.
This year, the Rio Oil & Gas Expo and Conference
attracted 4400 delegates from 27 countries and 300
members of the press. 1300 exhibitors set up booths
in the 39,500 m2 Expo space and almost 600 technical
papers were presented. All good evidence that the Rio
oil & gas industry is a driving force for new business! n
Noia News 41
IN BRIEF Another successful year for the Placentia Bay Industrial Showcase
Another successful
Placentia Bay
Industrial Showcase
Industrial Showcase 2012 was hosted by the Placentia Bay Chamber of Commerce from September 25-27, 2012.
Designed to facilitate industrial development in the area, this year’s installment divided its time between locations
in Placentia and Long Harbour. Attendance was high and a number of sessions were at capacity, including the Day
One session in Long Harbour.
Presentations focused on the multi-billion dollar projects committed for completion in the area over the coming
five years, including Canada Fluorspar’s St. Lawrence project, the Come By Chance oil refinery, Bull Arm’s Hebron
GBS Project, Vale’s nickel plant at Long Harbour, and fabrication, oil & gas, and marine transportation opportunities
at Argentia.
Affiliated events included a trade show at Placentia’s PARC Arena, a golf tournament at The Wilds, luncheons and
other social events.
42 Noia News
Annual
General
Meeting
January 31, 2013
Mike Critch, Chair of Noia’s 2012 Board of Directors
Noia Chair takes
on new role
Sheraton Hotel
St. John’s
SAVE THE DATE
IN BRIEF Noia Chair takes on new role
www.noia.ca
Mike Critch, Chair of Noia’s 2012 Board of Directors, has joined project
management firm NSB Energy as owner and Chief Executive Officer.
Mike is well known in the oil & gas sector. A proud native of Newfoundland
& Labrador, he worked in Alberta, Louisiana, and Houston before returning
home to work in the east coast offshore industry in 2003. He has held
executive positions with several international firms and has established a
solid record of building motivated teams that deliver successful projects,
both locally and globally. Mike’s reputation for dedicated service is one of
many powerful assets that he brings to his new role as CEO of NSB, where
he is responsible for the daily operations of the company.
Born and raised in St. John’s, Mike graduated from Memorial University
with a Bachelors Degree in Engineering and received his P. Eng designation
in 1998. He was first elected to Noia’s Board of Directors in 2006, held
the position of Treasurer in 2008 and 2009, and assumed the role of
Chair at the 2012 Annual General Meeting.
NSB Energy provides project personnel and engineering consulting services
to the natural resources industry. It helps clients manage their multi-billion
dollar projects with dedicated project professionals and quality engineering
support. NSB is proud to be a local company and equal opportunity
employer, committed to its employee and customer success.
Noia extends congratulations and best wishes to Mike in his new venture. n
Noia News 43
IN BRIEF 7th annual Western NL Oil & Gas Symposium takes place
7th annual Symposium
takes place
Marble Mountain Resort in Steady Brook was the site
for the seventh annual International Symposium on Oil
and Gas Resources in Western Newfoundland held
September 12-14. Hosted by the Greater Corner Brook
Board of Trade and the Western NL Oil and Gas Steering
Committee, the event drew more than 100 participants
keen to attract and promote exploration on the
province’s west coast.
A highlight of the symposium was a keynote speech
Sept. 14 by Michael Enaschescu, exploration advisor to
the NL government and chief geophysicist for Calgary-based
MGM Energy. He said one of the challenges facing
west coast exploration is the small amount of seismic data
available offshore. He noted there are usable seismic lines for
only one-quarter of the 40,000-square-kilometre offshore area.
Enaschescu recommended the province build a modern
repository of digital seismic data that is available
online. He also suggested the province establish licensing
terms and provide incentives to small companies to help
them fund seismic surveys, and he advised explorers to
hire full-time, professional geoscientists to map the
sub-surface and recommend drilling targets. n
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44 Noia News
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Port ability matters.
Working on the East Coast of Canada can present its own unique challenges,
and the Port of St. John’s is always ready with solutions that are both
economical and efficient. We like to think of it as our port ability.
Our superb location is just one part of a growing transportation hub with
advanced infrastructure and an unparalleled commitment to ensure that the
Port of St. John’s remains one of the most accessible and flexible marine
service centres in Canada. We have the largest and most advanced marine base
in Atlantic Canada; world-class facilities capable of constructing and shipping
subsea equipment; and, a state-of-the-art dockside Fluid Manufacturing Facility
at Pier 17. The port is also home to the province’s only applied research
organization exclusively dedicated to the oil and gas industry; as well as the
province’s primary container terminal.
Check out our new web site:
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With all of this foremost in our minds, the Port of St. John’s understands that
an efficient port should be able to adapt to the unique situations of its users.
THE ST. JOHN’S PORT AUTHORITY
1 Water Street, St. John’s, NL, Canada
Tel: (709) 738-4782 / www.sjpa.com