THE FUTURE OF OFFSHORE ENERGY & TECHNOLOGY

MAY/JUNE 2024 | OEDIGITAL.COM | VOL. 49, NO. 3

Offshore
Wind
Inside the
Financial Web
Subsea Survey
Cutting the Cord

CTVs
Building the U.S. Fleet

Floating Wind &

Leveraging the O&G Supply Chain

Safety Products & Systems

The Center for Offshore Safety (COS) supports
companies in offshore natural gas and oil operations
to develop, implement and improve their Safety and
Environmental Management Systems (SEMS).

COS issues SEMS certificates for offshore companies

around the world that demonstrate their commitment to
safe operations and environmental protection.

Join the COS mission:

www.CenterForOffshoreSafety.org
Copyright 2024 – Center for Offshore Safety, all rights reserved. Center for Offshore Safety and the COS logo are either trademarks or registered trademarks of
the Center for Offshore Safety in the United States and/or other countries. API Global Marketing and Communications: 2024-7 | 05.29 | PDF
 MAY/JUNE 2024
WWW.OEDIGITAL.COM
VOL. 49 / NO. 3

30
Autonomous Survey Technology:
38
38
Offshore Wind: Inside the Financial Web
Cutting the Umbilical While offshore wind projects might be thought of as being in
There is a flurry of development underway to cut seafloor seismic the ‘utility finance’ basket, they are ultimately high-risk deals
and geotechnical survey technologies free from on-site control. that might better suit the portfolios of ‘infrastructure invest-
By Wendy Laursen ment’ which, in recent years, has taken a shift towards tolerat-
ing more uncertainty when it comes to cash flows.
By Barry Parker

34
The Strategic Shift to Subsea Tiebacks
A potentially cost-effective, efficient means to develop remote
48
oil & gas fields. Electrolyzer Tech Ramps Up to Meet
By Amir Garanovic Green Hydrogen Demands
Electrolyzer technology is going to have to get cheaper and more
scalable if it is going to enable a global green hydrogen economy.
By Wendy Laursen

Photo this page courtesy DEME; Cover photo © Arild / Adobe Stock

2 OFFSHORE ENGINEER OEDIGITAL.COM

 Sponsored Content - API
6 Celebrating Offshore Safety:
The COS Safety Leadership Award
26
Sponsored Content - Survitec
Argeo
10 Survitec Gauntlet:
Protecting Offshore Crews &
Assets from Valve Actuator Failure

14 Saudi Aramco Jackup

Suspensions: The Story So Far…
By Teresa Wilkie, Westwood

18 Preparing for Floating Wind –

Leveraging the Oil & Gas
Supply Chain
By Philip Lewis, Intelatus Global Partners
34
© corlaffra/Adobe Stock

22 Offshore Support Vessel (OSV)

Market Recovers to Healthy Levels
By Jesper Skjong, Fearnley Offshore Supply AS 44
26 Argeo Steams Ahead on
Subsea Survey
By Celia Konowe

44 Crew Transfer Vessels:

Building the US Fleet
By Eric Haun

WindServe Marine

48
DEPARTMENTS

4 Editor’s Letter
5 Authors in this Edition
54 New Products: Safety Systems
56 By the Numbers: Rigs & Discoveries
© Orange Dragon Studio

MAy/june 2024 OFFSHORE ENGINEER 3

EDITOR’S LETTER

The first six months of 2024 have been a literal scrum of business travel
globally, as it seems post-pandemic exhibitions, conferences and events are
in hyper-growth mode to recoup lost revenue. I anticipate that 2025 and
beyond will result in a culling of the event calendar, as it’s clear that while
some events have roared back to life stronger than ever, 50% or more are
perceptibly weaker; some a mere shadow of their former selves. That is Vol. 49 No. 3
ISSN 0305-876x USPS# 017-058
a perfect segue to Theresa Wilkie’s column this month on the Saudi
Aramaco Jackup story, as the post-pandemic enthusiasm was me square- 118 East 25th Street,
ly with real-world reality. As Wilkie writes, Saudi Aramco’s ambitious New York, NY 10010
post-Covid jackup fleet expansion program, in which the operator looked tel: (212) 477-6700; fax: (212) 254-6271
to increase its fleet size from approximately 49 jackups in June 2022 to www.OEDigital.com
90 in just two years, seemed a daring feat but was almost met earlier this
year with 89 jackups at work, driving regional and global jackup utilization. EDITORIAL
However, in January 2024 Saudi Arabia ordered Saudi Aramco to halt its oil GREGORY R. TRAUTHWEIN
Editor & Publisher
expansion plan and to target a maximum sustained production capacity of
AMIR GARANOVIC
12 million barrels per day (bpd), 1 million bpd below a target announced Managing Editor
back in 2020. In early April the confirmation of various suspensions started [email protected]
rolling in, finally equating to 22 jackups across eight contractors to date. BARRY PARKER, New York
Ups and downs are certainly not new in the offshore energy sector, and WENDY LAURSEN, Australia
as another of our regular contributors – Jesper Skjong, Market Analyst,
Fearnley Offshore Supply AS – writes, the market for OSVs, while still on a PRODUCTION / GRAPHIC DESIGN
NICOLE VENTIMIGLIA
positive trajectory premised on an overall 45% increase spend on E&P from [email protected]
2021 to 2025 to $200B, that has not been equally felt across all sectors, and
SALES
in fact the OSV market is now at a stable and healthy level. TERRY BREESE, VP Sales
Looking at offshore wind in the U.S., the news continues to be a mixed +1 (561) 732-1185 | [email protected]

bag with project starts and stops, and the industry as a whole continues to JOHN CAGNI
experience predictable growth pains. Barry Parker takes a deep dive into [email protected] | +1 631-472-2715

the finances behind offshore wind, writing “While offshore wind projects FRANK COVELLA
[email protected] | +1 561-732-1659
might be thought of as being in the ‘utility finance’ basket, they are ulti-
mately high-risk deals that might better suit the portfolios of ‘infrastructure TRICIA GARRETT
[email protected] | Tel: +1 516-441-7254
investment’ which, in recent years, has taken a shift towards tolerating more
uncertainty when it comes to cash flows.” Regardless of the pace and direc- MIKE KOZLOWSKI
[email protected] | +1 561-733-2477
tion of offshore wind in the U.S., globally the sector is on a bull run, and
Check out the the future undoubtedly lies in floating solutions that must and will lever- GARY LEWIS, Panama
2024 Media (516) 441-7258 | [email protected]
age traditional offshore O&G experience. Filling in some of the technical
Kit via the QR and market blanks here is Philip Lewis, Research Director Intelatus Global
Code Below CORPORATE STAFF
Partners, with his article Preparing for Floating Wind – Leveraging the Oil & CEO
Gas Supply Chain, which examines similarities and differences between the JOHN O’MALLEY
[email protected]
deepwater oil & gas and the emerging floating wind segment.
President & COO
GREGORY R. TRAUTHWEIN
[email protected]

IT Director
VLADIMIR BIBIK

Public Relations
Gregory R. Trauthwein MARK O’MALLEY
[email protected]
Editor & Publisher
Accounting
[email protected] ESTHER ROTHENBERGER
m: +1-516.810.7405 [email protected]

Circulation
OFFSHORE ENGINEER (ISSN 0305-876X) is published bi-monthly (6 times per year) by AtComedia, KATHLEEN HICKEY
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4 OFFSHORE ENGINEER OEDIGITAL.COM

 MAY/JUNE 2024
WWW.OEDIGITAL.COM
VOL. 49 / NO. 3

O e W r i t e r s
Eric Haun, former managing editor of Offshore Engineer, is the editor of
Marine News. He has covered the global maritime, offshore and subsea
sectors since 2013.

Celia Konowe is from Reston, Virginia, recently graduating from the

University of Rochester with a degree in environmental studies. She has
study abroad experience in France and Ecuador, including the Universidad
Haun de San Francisco Quito’s GAIAS (Galápagos Institute for the Arts and Parker
Sciences) program. Currently, she is pursuing her master of environmental
studies degree at Dalhousie University in Halifax, Nova Scotia.

Wendy Laursen has 20 years of experience as a journalist. In that time,

she has written news and features for a range of maritime, engineering
and science publications. She has completed a Master of Science
research degree in marine ecology as well as diplomas in journalism,
communication and subediting.

Konowe Philip Lewis is Director Research at Intelatus Global Partners. He has Skjong
extensive market analysis and strategic planning experience in the
global energy, maritime and offshore oil and gas sectors. Intelatus Global
Partners has been formed from the merger of International Maritime
Associates and World Energy Reports.

Barry Parker of bdp1 Consulting Ltd provides strategic and tactical support,
including analytics and communications, to businesses across the maritime
spectrum. He is a freelance writer and regular contributor to this magazine.

Laursen Jesper Skjong is a market analyst at shipbrokerage Fearnley Offshore Wilkie

Supply covering the offshore support vessel market, including O&G and
offshore renewables.

Teresa Wilkie is the Director of RigLogix within Westwood Global Energy

Group, leading a team of experienced offshore rig market analysts. She
has over a decade of knowledge as an analyst in the oil and gas industry
bringing expertise from her time at IHS-Markit (formerly ODS-Petrodata) and
Esgian (formerly Bassoe Offshore).

Lewis

MAy/june 2024 OFFSHORE ENGINEER 5

SPONSORED CONTENT API

Celebrating Offshore Safety:

The COS Safety
Leadership Award
All images courtesy Getty Images

6 OFFSHORE ENGINEER OEDIGITAL.COM

 S
ince 2011, the Center for Offshore Safety
(COS) has led the way in advancing safe-
ty and operational integrity for the U.S.
offshore natural gas and oil industry.
Through shared good practices and continuous
learning opportunities, COS supports the indus-
try in meeting its evolving safety and sustainability
goals, which include reducing the occurrence of
offshore industry safety incidents.
COS was established to help companies manage
their operational risk by accrediting the auditors
who provide them with Safety and Environmental
Management Systems audits, which are detailed
in API Recommended Practice (RP) 75, Safety
and Environmental Management for Offshore Oper-
ations. In addition, COS provides feedback to the
Bureau of Safety and Environmental Enforcement
(BSEE) regarding the interaction between API
standards and governmental safety regulations.
When it comes to offshore safety, the principle
of “a rising tide lifts all boats” is particularly apt
in describing the COS commitment to sharing
and facilitating safety discussions. By promot-
ing an open environment for exchanging knowl-
edge, COS helps operators incorporate safety
standards and mitigate risks for the entire indus-
try through effective Safety and Environmental
Management Systems.
The COS Safety Leadership Award plays an
integral role in this mission, encouraging indus-
try-wide collaboration and the exchange of good
practices to enhance offshore safety. Given an-
nually, the award honors operators and contrac-
tors who demonstrate outstanding leadership in
developing safety management and performance
practices. These practices and projects play a key
role in advancing a culture of safety within the
offshore industry. Nominations for the award
emphasize the importance of engagement, en-
couraging industry professionals to acknowl-
edge achievements and inspire further innova-
tion and advancements.
While the award singles out individual achieve-
ment, it also highlights the broader benefits of
sharing successful strategies and operational in-
sights, furthering the industry’s goal of creating a
culture of safety and environmental stewardship.

MAy/june 2024 OFFSHORE ENGINEER 7

SPONSORED CONTENT API

By recognizing these achievements, the COS Safety Lead- members. Forum attendees vote to determine the award
ership Award encourages other companies to adopt similar winners after seeing all six presentations.
practices, nurturing a continuous cycle of learning and im- Last year, Occidental Petroleum won top honors in the
provement across the industry. operator category for its Oxy Heat Stress Program, which
It is no coincidence then that the award is presented at protects workers from the health risks posed by extreme
the Annual COS Forum (Forum), COS’ industry event temperatures in offshore environments. Through rigor-
where safety trends, challenges and innovations are dis- ous audits, monitoring and the deployment of heat stress
cussed by industry leaders. The Safety Leadership Award aids, Oxy aims to both reduce and mitigate heat incidents.
presentation has become a focal point of this forum, pro- Since its launch in 2020, Oxy has led to improvements
viding a high-profile platform for finalists to showcase in heat stress management metrics, along with a notable
their achievements. reduction in heat-related incidents.
In the contractor category, Valaris was recognized for
Previous Award Winners its innovative approach to onboarding new offshore em-
Each year before the Forum, the COS Board reviews all ployees. Its immersive “Valaris Basic Training” program
nominations, selecting finalists in both the operator and repurposed one of its offshore assets into a training rig,
contractor categories. These finalists are then highlighted offering recruits an authentic, hands-on introduction to
at the annual event, where their impactful contributions offshore work. The program significantly improved safety
and program successes are detailed and shared among outcomes and retention rates among new employees.

8 OFFSHORE ENGINEER OEDIGITAL.COM

Nominate for the 2024 COS Safety No stone left unturned and nothing
Leadership Award in return
This year, COS will again present Safety Leadership In the pursuit of offshore safety, the industry cel-
Awards in the operator and contractor categories, recog- ebrates its safety first, safety always mission, striving
nizing those who have made significant advancements in for no incidents and no catastrophic failures. And it is
safety management practices, focusing on accident risk precisely this pursuit that highlights the importance of
reduction and systematic safety improvements. the COS Safety Leadership Award. This tangible recog-
Help COS identify the projects or initiatives over the nition celebrates the rigorous and often unnoticed ef-
past year deserving of this coveted recognition. Submit your forts that prevent incidents, transforming the industry’s
nomination and description for the projects or initiatives abstract goal into a concrete achievement celebrating
that exemplify the highest standards of safety excellence. By proactive steps.
submitting a nomination, you are given a chance to high- Please take a few minutes to nominate the projects or
light your company’s achievements while contributing to the initiatives that you feel best exemplify the development
collective learning and improvement of the industry. Nomi- and sharing of good safety management practices. Nomi-
nations are open until June 28, 2024; the six finalists (three nees must also provide a description of the program,
in each category) will be showcased at the 2024 COS Forum which the COS Board will use when selecting the final-
in Houston, September 26, 2024. Your company does not ists. You can download the nomination form here. Nomi-
need to be a COS member to submit a nomination. nation deadline is June 28, 2024.

MAy/june 2024 OFFSHORE ENGINEER 9

SPONSORED CONTENT SURVITEC

All images courtesy Survitec

Survitec Gauntlet:
Protecting Offshore Crews
& Assets from Valve
Actuator Failure
A pioneering new energy containment safety device,
the Survitec Gauntlet, is designed to reduce the risks
associated with catastrophic value actuator failures in
offshore oil and gas, protecting crews and assets.
By Eric Haun

10 OFFSHORE ENGINEER OEDIGITAL.COM

A
s offshore oil and gas infrastructure ages and the
ever-present risk posed by equipment failure
looms, new solutions are required to help keep
crews and assets clear of harm’s way. One of these
solutions is Survitec’s Gauntlet, an innovative safety con-
tainment system designed to mitigate the risks associated
with valve actuator failures in offshore environments.
Paul Gwynne, Sales and Contracts Manager (Energy),
Survitec, describes the Gauntlet as a cutting-edge system
that provides comprehensive 360-degree protection in
the event of a catastrophic valve actuator failure. Utiliz-
ing advanced para-aramid materials with a yield strength
10 times that of steel, the Gauntlet can withstand tremen-
dous forces to ensure that in the event of an actuator fail-
ure high-velocity projectiles are contained and dissipated
harmlessly—similar to a bulletproof vest.
The technology, originally adapted from aerospace ap-
plications, can be designed to accommodate and be com-
patible with any valve actuator, and represents a signifi-
cant leap forward in safety protocols for offshore facilities,
Gwynne said.
The Gauntlet’s inventor, Andrew Mackay, CEO, In-
finity Oilfield Services Ltd., explained that the system’s
origins are rooted in a clear industry need. “There was a
definite demand from clients in the North Sea, particu-
larly Total and Shell,” Mackay said, recalling incidents and
near-misses that highlighted the vulnerabilities of existing
safety measures. Traditional methods like steel clamps or
scaffolding boards proved inadequate in containing the
potential hazards posed by actuator failures, necessitating a
more robust solution, he said.
The issue of valve actuator failures, predominantly
caused by internal corrosion in aging equipment, poses
a significant challenge, Mackay emphasized. “We’ve en-
countered hundreds of actuators in a degraded state,” he
said, noting internal corrosion can be nearly impossible to
detect without dismantling the actuators. With offshore
assets often exceeding three decades in service, the preva-
lence of degraded actuators underscores the critical need
for proactive safety measures like the Gauntlet.
“It’s very hard to predict when [a failure’s] going to
happen and how quickly it’s going to happen. [The
Gauntlet] adds a layer of safety, particularly for personnel
that are not aware, working in the area, working on other
items,” Mackay said.
Gwynne elaborated on the current safety protocols and
the Gauntlet’s impact on industry standards. He said safety

MAy/june 2024 OFFSHORE ENGINEER 11

SPONSORED CONTENT SURVITEC

Take a deeper dive

into Survitec Gauntlet,
a pioneering new
energy containment
safety device, in this
OE TV interview with
the developers.

protocols over these particular issues are ambiguous, not- broader strategy for safety enhancement. Survitec’s exist-
ing that authorities have advised duty holders and opera- ing lineup of safety solutions includes lifeboats, life rafts,
tors to take responsibility to make their work areas safe. marine evacuation systems, fire systems, life jackets, im-
“The Gauntlet offers a step change in safety controls,” mersion suits, etc.
Gwynne emphasized, highlighting its certification and rig- “Survitec has been providing safety solutions to pro-
orous testing in collaboration with Lloyd’s Register. This tect lives and reduce risk for well over 100 years. We’ve
approval ensures that operators now have a reliable solu- always been at the forefront of safety innovation, and take
tion to effectively manage and mitigate the risks associated immense pride in being a global leader for critical safety
with actuator failures. equipment and survival solutions,” Montgomery said. “It
Since its introduction, the Gauntlet has received posi- is crucial that the working environment is as safe and risk-
tive feedback and adoption by major and supermajor op- free as humanly possible, and the Gauntlet supports Sur-
erators across the U.K. and North Sea. Gwynne noted, vitec striving towards this goal.”
“There’s been significant implementation of the Gauntlet As assets continue to age and risks escalate, the Gauntlet
system, which has overnight provided immediate resolu- represents not just a solution but a pivotal advancement in
tion to what would be a considerable hazard and risk to ensuring safer working environments offshore.
personnel and plant.” This widespread acceptance under- “The risk of activator failure will increase as assets age,
scores its role as a critical component in safeguarding off- increasing the risk to lives and equipment. Currently, the
shore operations. Gauntlet is the only approved safety solution to address
David Montgomery, Head of Sales UK, Survitec, un- the risk. And as such, forms a key part of our strategy for
derscored how the Gauntlet aligns with the company’s safety enhancement in the industry,” Montgomery said.

12 OFFSHORE ENGINEER OEDIGITAL.COM

MARKETS JACKUPS

Saudi Aramco
Jackup Suspensions:
The Story So Far…
By Teresa Wilkie, Director of RigLogix, Westwood

S
audi Aramco’s ambitious post-Covid jackup fleet mum sustained production capacity of 12 million barrels
expansion program, in which the operator looked per day (bpd), 1 million bpd below a target announced
to increase its fleet size from approximately 49 back in 2020. Initially it was unclear if the NOC would
jackups in June 2022 to 90 in just two years, cut any offshore rig capacity, but following multiple indus-
seemed a daring feat. But fast forward to March 2024 and try rumors, in early April the confirmation of various sus-
the Saudi Arabian National Oil Company (NOC) almost pensions started rolling in, finally equating to 22 jackups
met its target having 89 jackups at work. across eight contractors to date.
To reach this target, the operator awarded 247.8 Although the full terms and conditions of each suspen-
years of contract backlog during the period January sion have not been disclosed, it is understood that the ma-
2022 to December 2023, with the majority of awards jority will be for up to one year apiece and at US$0 day
being three-to-five-year deals, and some even as long as rate (or another mutually agreed standby rate). The origi-
a decade. nal term of the suspended contracts will automatically be
The Middle Eastern operator took supply from all over extended for a period equal to the suspension for each rig,
the world, which meant not only Middle Eastern jackup preserving the remaining backlog, while the drilling con-
utilization increased, but so too did the global figure – tractors can also market the rig for other work during the
jumping from 83% marketed committed utilization in suspension or to terminate the remainder of the contract.
January 2021 to 94% by December 2023.
However, in January 2024 Saudi Arabia ordered Saudi Eight Affected Rig Managers
Aramco to halt its oil expansion plan and to target a maxi- Advanced Energy Systems (ADES), which provides the

14 OFFSHORE ENGINEER OEDIGITAL.COM

 MARKETS JACKUPS

Saudi Aramco Jackup Suspensions Overview (Accurate as of 29 May 2024)

*ARO chose to terminate the remainder of its deal with Saudi Aramco and the rig has since been returned to owner Valaris.
**For a full list of rig names and further suspension details see Westwood RigLogix

operator with its largest fix of jackups at 33 units in to- Furthermore, ARO Drilling-managed/Valaris-owned
tal was informed five would be suspended. China Oilfield jackup Valaris 143, which only had approximately seven
Services Ltd (COSL) and Shelf Drilling will have 44% of months remaining on its contract with Saudi Aramco, had
their fleet on hire with the operator suspended (four units its deal terminated by the rig manager. Upon dissolution
apiece out of nine). Saipem, which has seven rigs con- of the contract, the bareboat charter agreement between
tracted to the operator, will see three units suspended, and Valaris and ARO was also terminated, and the rig was sub-
Arabian Drilling with nine rigs on hire will also have three sequently returned to Valaris.
units idled. The three remaining companies – Borr Drill-
ing, Egyptian Drilling Company (EDC) and ARO Drill- Re-Contracting Confidence
ing – were notified of one suspension each. However, it is not all doom and gloom. Of the remain-
All these jackups have since begun their suspension pe- ing suspended jackups, three of the ADES rigs have al-
riods, with the exception of one Saipem rig and two Ara- ready since been re-contracted for work outside of the re-
bian Drilling units that were still out working as of 29 gion – one for work in Qatar, one for Egypt and another
May. Working utilization of the Saudi Aramco jackup fleet for operations off Thailand.
has fallen from 97.7% in March to just 82.1%, with this There appears to be confidence from most of the re-
anticipated to hit 77% by June/July when the remaining maining affected rig managers about securing new deals.
rigs start their suspensions. Globally, marketed working Borr Drilling, in its latest financial update, stated that it
utilisation fell from 86.1% to 83.7% in just two months expects its one suspended jackup – Arabia I – to be rede-
(March-May 2024). ployed in a different region before the end of 3Q 2024.

MAy/june 2024 OFFSHORE ENGINEER 15

MARKETS JACKUPS

Valaris also stated that it is already in talks with new opera- Opportunities for redeployment
tors for the Valaris 143. So where could these rigs potentially end up, should
Shelf Drilling, meanwhile, believes it can secure work their managers choose to bid them elsewhere? RigLogix
for three of its four suspended rigs, getting them back into records a total of 32 requirements at a full tender or direct
operation before the end of 2024 at attractive dayrates and negotiation stage, that are due to begin in the next year
margin levels. The fourth unit, it believes, could also find should they move ahead.
new work next year. India, Southeast Asia and Africa appear to be offering up the
COSL has yet to decide if it will relocate any of its lion’s share of potential demand days during this period. How-
four suspended rigs and has not divulged what it’s plans ever, some rumours suggest that due to this new additional sup-
will be, while Arabian Drilling has indicated that it is ply of jackup capacity in the market, we may see some opera-
actively exploring opportunities to redeploy the units tors that currently have active tenders out in the market look to
with other operators. cancel and re-tender as they may potentially be offered lower
Saipem, meanwhile, has revealed that one of its sus- dayrates in the current environment. The upward trajectory of
pended jackups was already budgeted to complete its dayrates appears to be unaffected year-to-date.
contract around the middle of this year and will be de- Total remaining term on the suspended contracts comes
livered back to the owner. Another unit will undertake to approximately 54 years of backlog, or 66 years including
planned maintenance and recertification during the options. Of course, some of this has now been terminated
suspension period, and the third will most likely be re- and perhaps more will be in the future. It is unclear if those
deployed into a different geographical area substituting rigs that have been re-contracted outside of the region will
another rented unit that will be subsequently delivered return to finish their stints with the Saudi Arabian opera-
back to the owner. tor after their new commitments.

16 OFFSHORE ENGINEER OEDIGITAL.COM

Source: Intelatus Global Partners

MAy/june 2024 OFFSHORE ENGINEER 17

MARKETS FLOATING WIND

© Arild / Adobe Stock

PREPARING FOR
FLOATING WIND –

LEVERAGING THE OIL &

GAS SUPPLY CHAIN
Examining similarities and differences between
the deepwater oil & gas and the emerging
floating wind segment.
By Philip Lewis, Research Director Intelatus Global Partners

18 OFFSHORE ENGINEER OEDIGITAL.COM

 MARKETS FLOATING WIND

T
here has been much excitement around the po- meters). Australia and India hold significant potential, but
tential for the offshore wind industry to access commissioning of commercial scale floating wind projects
deeper water sites through the deployment of is unlikely until around the middle of the next decade.
floating wind technology. Europe will see floating wind deployment in the Atlan-
Further, there has been much discussion around the tic, Baltic, Mediterranean and North Sea, with the UK
development and deployment of disruptive technologies (80-150 meters) and Norwegian (200-400 meters) mar-
to leverage the opportunity of floating wind. However, in kets likely to drive activity through this and the first half
the short- to medium-term, there is insufficient time to of the next decade.
mature early-stage concepts to the high degree of techni- In the U.S., the first commercial scale projects will be off
cal readiness that will satisfy classification societies, banks, California (500-1,300 meters). Future activity is planned
insurance companies and others. This means that floating off Oregon (550-1,500 meters), the Gulf of Maine (190-
wind will need to lean heavily on the supply chains devel- 300 meters) and the Central Atlantic (over 2,000 meters).
oped to support the offshore oil & gas industry. Canada is also investing floating wind, but this is at the
In this article we look at some of the similarities and early stages.
differences between the deepwater oil & gas segment and The oil & gas industry has much experience working in
the emerging floating wind segment, concluding with our the water depths discussed for floating wind. The bigger
concern that we do not have the right number or the right challenges come in the quantities involved.
type of vessels for the efficient construction of commercial
scale floating wind farms. Commercial Scale Floating Wind
Floating wind is an emerging technology. At end of
Deeper Water & Floating Wind 223, total global floating offshore wind capacity was less
The current floating wind hotspots are found in the than 250 MW out of a total offshore wind capacity of
APAC, European and North American regions. 64 GW. We forecast total installed floating wind capac-
In APAC, we look to China (100 -125 meters), South ity of ~6.25 GW by the end of 2030 and close to 70
Korea (130-275 meters) and Taiwan’s pilot arrays (~100 GW by 2035.

MAy/june 2024 OFFSHORE ENGINEER 19

MARKETS FLOATING WIND

To achieve the forecast, commercial scale projects will exceed the capabilities of the world’s largest deepwater
need to commence offshore mooring and array cable pre- anchor handlers. Given that today’s fleet of large anchor
lay operations three-to-four years before final commission- handlers was not designed with floating wind in mind,
ing. Currently there are concerns that the supply chain it is not surprising that many are not the optimal tool
cannot cope with the quantities required. for floating wind. Chain sizes can be reduced, but that
A commercial scale floating wind farm will generally be results in the need for more mooring lines which accen-
anything larger than 500 MW and likely be ~1 GW. At a tuates the problem of vessel shortages.
high-level, we can say that the 1 GW floating wind farm
will have a similar order of magnitude capital expenditure A Fleet is Needed to Built Floating Wind Farms
to an FPSO. The pre-lay of moorings and array cables and Projects in planning will need large anchor handlers
the towing of the turbines will leverage skills developed in and subsea vessels to pre-install moorings and array
the offshore oil & gas industry. cables and hook-up up the turbines, which have been
The table establishes that the global quantities of towed by large anchor handlers supported by smaller
mooring lines, anchors and array cables are significant. anchor handlers.
The quantity is not the only challenge for the existing Flexibility will drive floating offshore wind construction
installation fleet of anchor handlers and subsea vessels, vessel utilization. Vessels will need to accommodate a vari-
but also the physical size of the components. The size of ety of anchor types, chain, fiber rope and steel wire moor-
the mooring components is also generally larger than that ing lines, and tensioning operations.
seen in the oil and gas industry. In fact, project planning Apart from one large vessel suitable to support floating
is calling for mooring chain sizes that challenge and even wind projects that was delivered in China last year, there

Source: Intelatus Global Partners

20 OFFSHORE ENGINEER OEDIGITAL.COM

 MARKETS FLOATING WIND

has basically been no large anchor handling vessel ordering Is a Spike in New Building Coming?
since 2014, including the last big vessels delivered in 2018- New building of vessels suited to efficient floating wind
20. This asset class is seeing increasing demand from oil & construction is needed.
gas work and was generally not built with floating wind in Increasing utilization and competition for key vessels is
mind and so most vessels can be classed as suboptimal for translating to higher rates and, at least for subsea vessels,
floating wind. ordering.
Subsea vessels are being used to support oil & gas and However, barriers to vessel FID still exist through tech-
bottom-fixed offshore wind vessels. Utilization in the seg- nical, regulatory, and financial uncertainties. Until these
ment is high and there has not been some new building barriers are cleared, vessel ordering will remain low and
activity, with orders placed for at least three new subsea impact on floating wind projects.
vessels with 250 tonnes AHC cranes, the minimum re- In closing, we wish to extend the debate from hard-
quired for floating wind projects. ware issues (vessels) and talk about the software (peo-
As with bottom-fixed wind, floating wind projects will ple). Attracting and retaining the next generation of
be supported by walk-to-work vessels (CSOVs or MPS- talent and building sufficient technical competence in a
Vs and PSVs with active heave compensated gangways), timely manner is a key industry challenge and one that
CTVs and other support OSVs. needs every bit as much attention as the vessel numbers
and capabilities.

Vector Offshore NDB System

Oil platform, support vessel and wind farm applications
Nautel’s field-proven Vector Series VR125 non-directional radio beacon (NDB) transmitter
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Highlights include:
• Sophisticated graphic user interface (GUI) for easy
maintenance and troubleshooting.
• Single or dual (main/standby with automatic
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• Synthesized exciter uses advanced DDS technology
to produce highly stable RF drive at the desired
operating frequency.
• Extensive automatic fault monitoring, with 256
event log, for faster troubleshooting.

Learn more at
nautelnav.com/offshoreNDB

MAy/june 2024 OFFSHORE ENGINEER 21

MARKETS OFFSHORE SUPPORT VESSELS (OSV)

© NickEyes / Adobe Stock

OFFSHORE SUPPORT VESSEL

(OSV) MARKET RECOVERS
TO HEALTHY LEVELS
The market for offshore support vessels has experienced
tremendous development in the last couple of years. And while
we expect the market to continue its positive journey, we would
argue that, at least on an overall basis, the market has already
recovered to healthy levels at the time of writing.

By Jesper Skjong, Market Analyst, Fearnley Offshore Supply AS

22 OFFSHORE ENGINEER OEDIGITAL.COM

 MARKETS OFFSHORE SUPPORT VESSELS (OSV)

T
here are solid underlying fundamentals that North Sea Demand Flat,
are driving the increased vessel demand, chief While Other Regions Record Rise
among them is the increased offshore upstream The implications thus vary depending on the region in
investment on a global level. Overall, spending question, and in the North Sea basin, for example, we find
on exploration and production is set to increase roughly that vessel demand has remained stagnant with flat devel-
45% from 2021 to 2025, reaching a total of almost $200 opment in recent years. Moreover, the increased dayrates
billion in the latter year. herein has come about as a result of fewer vessels both active
Although this increased spending has translated into in- and in the fleet as a whole, and in fact, the current OSV fleet
creased offshore activity as a whole, it should be noted that it in this region is at its lowest in well over a decade.
has not hit all vessel segments equally, even among offshore In both the Southeast Asian and Middle East regions
drilling rigs. In fact, while the number of jackup drilling rigs the opposite is true, wherein the number of working units
under contract has risen in accordance with increased in- has grown significantly, and the latter is currently at an all-
vestments, the same cannot be said for floating drilling rigs. time high level. Despite this, dayrates in the Persian Gulf
As such, the OSV demand derived from E&P drilling has has yet to materialize to the same degree as seen elsewhere.
developed accordingly, where benign and shallow-water re- Granted, this is in large part due to the sever market share
gions, typically dominated by high volume yet low capacity of government-controlled players throughout the supply
AHTS units, have seen the largest increase in terms of incre- chain, yet also as a result of persistently high vessel avail-
mental demand. For deepwater and ultra-deepwater regions, ability for most asset classes.
we record a transition towards high-capacity ships, although In both Brazil and off West Africa on the other hand,
herein we also take note of a significant shift to subsea field the dayrates has increased tremendously thus far in the up-
developments as opposed to conventional infrastructure. cycle brought on by a combination of both a distinct lack
Finally, as several offshore oil and gas regions have and of suitable tonnage as well as higher vessel demand. More-
will come into maturity, we register that there is a relatively over, as these areas are facing a shortage of local vessels to
higher growth for production support more than explora- support the activity hikes, we have seen a large number of
tion derived operations, thus favouring assets focused on ships mobilized from other regions, offering lucrative op-
the former. These trends both have and will continue to portunities for international OSV owners.
shape the vessel landscape as the ongoing trends are ex- To this effect, the average dayrates for all asset classes
pected to persist for the foreseeable future. has increased significantly, and as seen on the graph,

OSV Term Rates Graph

Credit: Fearnley Offshore Supply

MAy/june 2024 OFFSHORE ENGINEER 23

MARKETS OFFSHORE SUPPORT VESSELS (OSV)

several of which are now well above previous peak lev- Another OSV Newbuild Boom ...
els. Furthermore, given the large number of planned Not on the Horizon Just Yet
project developments and drilling campaigns in both Historically, we as an industry have spoiled our own
regions, and with next to no new supply added in the party by ordering far too many OSVs which then adds
near future, we expect continued upward pressure on insult to injury in the ensuing downcycles. But even in
rates overall. the absence of a demand crash almost ten years ago, the

© David Maddock / Adobe Stock

24 OFFSHORE ENGINEER OEDIGITAL.COM

 MARKETS OFFSHORE SUPPORT VESSELS (OSV)

market forces saw the newbuild orderbook bloated even More to that point there are also severe supply chain
compared to the then peak activity demand. constraints presently impacting the industry, especially
Could our current market cycle really be any different; concerning people and a wide range of equipment includ-
have the market players burnt their fingers enough times ing diesel generators and engines. As a result of this, the
that this time they do not repeat themselves? We certainly build time for offshore vessels is currently between 24 and
hope so, but either way there are a number of important 36 months depending on the asset type. This, in combi-
reasons why we do not believe there will be another new- nation with the abovementioned factors, all contribute to
build boom akin to what we have seen previously. increased costs as well.
However voluntary or not the current newbuild ordering, Finally, there is inherent technological risk associated
or lack thereof, matters not, but what does matter is the cost with ordering a newbuild at this point in time, especially
and lack of available capital towards this end. It is a fact that so when ordering on a speculative basis. While there are
the majority of the largest financial institutions that fuelled many good arguments for switching to low- and zero emis-
the previous ordering sprees have either exited entirely or sion fuel alternatives, there is currently no market consen-
significantly reduced their exposure to oil and gas. sus towards just what fuel will be widely adopted by the
The same is true for the availability of yard slots suitable industry. Choosing the wrong fuel today could have a neg-
for OSVs. On one end, the total capacity of such shipyards ative impact on the vessels’ operability in the future, and
has been heavily reduced since the last run-up, especially there are different preferences, not just amongst operators
in the Far East. But even more so, in the absence of OSV and charterers, but also in between regions.
orders, the shipyards that are in operation have certainly All in all, we find it difficult to imagine another new-
not idly waited for the return of the market. build boom on the horizon from where we are stand-
Other vessel segments, such as support vessels for off- ing, at least one similar to what we have seen before. In
shore wind and commercial fisheries and aquaculture are light of this, we remain firm in our upbeat expectations
all built at yards that used to build PSVs and AHTS. As for the OSV market going forward, where both dayrates
such, there is currently a very limited number of slots left and vessel activity are expected to continue to rise for
for anyone looking to place an OSV newbuild. years to come.

MAy/june 2024 OFFSHORE ENGINEER 25

INTERVIEW SUBSEA SURVEY
All images courtesy Argeo

ARGEO
STEAMS AHEAD ON
SUBSEA SURVEY
We recently sat with Trond Crantz, the founder and CEO
of Argeo, a subsea service provider whose offerings
span from acquisition to actionable data. Now, a year
later, we spoke with Crantz to see what’s new with
Argeo, as well as gain further insight into the company’s
recent contract with Woodside Energy, new vessel and
technology acquisitions, and AI/software development
for data synthesis and communication.

By Celia Konowe

26 OFFSHORE ENGINEER OEDIGITAL.COM

 INTERVIEW SUBSEA SURVEY

Trond, sister-publication Marine Technology

Reporter (MTR) featured you about a year
ago in its March-April edition. What's new for
Argeo since?
It's been a lot, I can tell you. It seems like the last time I
spoke with MTR, it was two, three years ago now—that's
how much has happened. But at the same time, we’re still
finding our feet. A year ago, we had just acquired Argeo
Searcher, which was one of our first subsea survey vessels
and had started our first ultra-deep-water projects. And
since then, we've added so much more. The Searcher has
completed several hallmark projects for prominent cus-
tomers like the Norwegian Petroleum Directorate, Shell
in Nigeria and the National Centre for Polar and Ocean
Research (NCPOR) in the Indian Ocean.
We’ve rolled out our newest AUV line with Hugin Su-
periors and bought our newest subsea vessel, the Venture,
from Shearwater while also bringing them in as a share-
holder. The Venture was used by TotalEnergies for their
Namibia development project Venus and is mobilized
there, as we speak. We’ve also commercialized and proven
the Argeo LISTEN system for subsea integrity inspections
and proven its capability as a deep-sea mineral detection
and resource estimation tool. Lastly, the Searcher is active
in the Calypso field in Trinidad and Tobago as part of a
contract with Woodside Energy.
If someone had told me one year ago that what we
would be doing now, I wouldn’t have believed it. I’d think
it would be impossible, but there’s been fantastic team-
work and spirit throughout the company, which has obvi-
ously grown. We have now 80 employees, both onshore
and offshore, and that continues to grow as we develop You’ve had great successes this far? How will
more projects and technological advancements. you maintain this drive and uniqueness for
years to come?
Out of all those projects you mentioned, is First, we aren’t a company that stands still. We always
there one that was either your favorite or one move on. We have a portfolio of intellectual property that
that challenged Argeo? goes in sync with our technology development in three
That's the thing—they almost all are because a lot of what verticals—oil and gas, marine minerals, and renewables.
we are doing comes from teamwork. And of course, when We harness this in new sensors that can open new fron-
you're moving into this, you’re apprehensive. Will it work tiers in terms of exploration—either in deeper water or
as we have tested? Will it give the results that we hoped it in previously mentioned projects like offshore wind. This
would? With NCPOR, we’re trying to prove that these sen- combination of technology as a service to deliver superior
sors can be used for identifying mineral resources at nearly products is really what we're about.
6,000 meters, which is basically unheard of. We’ve spent a lot When we started all of this, we knew that we could
of time developing the sensor system and when something choose to be one of the best. That's always a strategy, but
works, it’s a special moment for everyone involved, from the we chose to be unique in what we do and to bring some-
technology developers to the operators and so forth. thing new to the field, which is somewhat of a heritage

MAy/june 2024 OFFSHORE ENGINEER 27

INTERVIEW SUBSEA SURVEY

“We have an in-house

data platform called Argeo
SCOPE that integrates all
the data from our LEDs,
allowing both our internal
employees and our clients
to interact with the data.
We’ve also made good use
of Elon Musk’s Starlink to
get data to shore, which
has been an enormous
step forward in terms of
access to our vessels.”

– Trond Crantz,
Founder & CEO of Arego

as well. Combining in-house engineering and technology fully integrated our own Argeo LISTEN system. The supe-
into production systems and doing those types of job ten riority of the AUV lies in the production facility of the ve-
times faster with superior quality—that's Argeo. And as we hicle (6000m) dual-HISAS which doubles the swath with
became good at that, we also said that, "Okay. I think the and production speed, CathX cameras and laser, and the
customer would like us to deliver our products from our endurance of up to 60 hrs of real acquisition time. It is the
field units to have rapid answers to their questions.” That most advanced AUV on the market to date, hands down.
makes us a bit special, I hope.
As an expert in the field, what do you see as the
Let’s switch gears to dive into your recent future of ocean surveying and subsea sensing?
projects, including the contract with Wood- How long is a rope? There's a huge and very fast cycle of
side Energy. Can you tell me a little bit about technology, which is ongoing. It never stops. We’ll see big
Argeo's role in that, what value it brings to changes in terms of the vehicles we use, what they can do,
you, and the vehicle being used? and how they can achieve the things that they do. I think
Absolutely. We've known Woodside for some time and that’s what everyone sees. But we’re thinking, more specifical-
we've been talking with them about the Calypso field. Our ly, how does machine learning and AI help us interpret data?
contribution is the Argeo Searcher with the new Hugin To give an example—with all the sensors turned on our
Superior. It’s a big project for us as a company; we’re po- Hugin Superior, for say 48-50 hours, we acquire up to 10
sitioning ourselves within the oil and gas sector, which is terabytes of data. Imagine sifting through all of that. It
massively important. takes a long time today, but we’re working on algorithms
We recently purchased two new Hugin Superiors, with to help us pick out important pieces. Another thing we’re
all bells and whistles of sensors included. In addition, we working on is to make the data live for the client. We’re

28 OFFSHORE ENGINEER OEDIGITAL.COM

 INTERVIEW SUBSEA SURVEY

developing a new data platform that allows more live inter-

action with data for decision making. There's a lot going
on the computer side to make things go faster, easier, and
to be able to give more sense of what we're seeing.
We have an in-house data platform called Argeo SCOPE
that integrates all the data from our LEDs, allowing both
our internal employees and our clients to interact with the
data. We’ve also made good use of Elon Musk’s Starlink to
get data to shore, which has been an enormous step for-
ward in terms of access to our vessels. I can have a Teams
meeting with our vessel in the middle of the Indian Ocean
today. This was a fantasy 20 years ago.

Trond, do you have a final message to close

us out?
What to expect from Argeo: We’ll bring out more ves-
sels, more tools, more vehicles, and more sensor systems—
and with the pace that we’ve had so far, it won't take long.

MAy/june 2024 OFFSHORE ENGINEER 29

AUTONOMY SUBSEA SURVEY

AUTONOMOUS SURVEY
TECHNOLOGY:
CUTTING THE UMBILICAL

There is a flurry of development underway to

cut seafloor seismic and geotechnical survey
technologies free from on-site control.
By Wendy Laursen

PXGEO’s MantaRay is a hovering

autonomous underwater vehicle
engineered to deploy and recover
ocean bottom nodes with minimal
impact to the ocean floor.

Source: PXGEO

30 OFFSHORE ENGINEER OEDIGITAL.COM

 "Geotechnical
drilling and
sampling will
evolve towards
fully autonomous
operations on
the seafloor."
– Andrew Galbraith,
Managing Director of Ocean Infinity

T
he deeper you go, the quieter the ocean be- OBN-to-OBN communication is used for navigation
comes. It’s something that Kyrre Tjøm is ex- and, as a swarm, to produce relatively small but high res-
ploiting in his back-to-basics approach to olution seismic datasets. In the future, it will enable the
ocean bottom nodes (OBNs). Like his com- swarm to report back to the launching vessel even if the
petitors, the CEO and Founder of iDROP, is vessel has moved beyond the reach of an individual OBN.
developing autonomous OBNs that can deploy themselves The OBNs are designed to glide to the seafloor without
on to the seabed without ROV support. the need for ROV help or DP-positioning mother vessels. As
The current method for laying the nodes, which catch part of their patented autonomy, the OBN’s will use flight
reflected waves during seismic surveys, involves specialist data to create a current profile as they traverse the water col-
vessels and specialist crews. It only takes one member of umn at a predefined heading, constantly adjusting angle of
the team to fall sick to disrupt an entire survey schedule, attack to create the required lift to navigate autonomously
says Tjøm. That’s how in-demand the expertise is. into position while the deployment vessel has moved on.
He has caught the attention of Woodside, ExxonMobil Where other autonomous OBNs use 50% of their bat-
and others. Unlike his competitors, Tjøm is avoiding high- tery power for launch and retrieval operations, iDROP’s
tech complexity above and below the surface. One way he gravity-based OBNs use around 5%. They use their rud-
is doing this is to exploit the quiet ocean floor to enable his ders and landing gear to slow their descent prior to landing
Oceanid OBNs to communicate with others in the swarm and correct their vertical inclination before mechanically
and with the ship, using acoustics. This is facilitated by hav- deploying their payload of sensors into the seafloor. As
ing upright OBNs that aren’t obstructed by seafloor topology. there’s no need for ROVs or umbilicals, if one OBN fails

MAy/june 2024 OFFSHORE ENGINEER 31

 AUTONOMY SUBSEA SURVEY

Ocean Infinity’s Armada surface robot

vessels only require a skeleton crew because
data processing and payload control is
conducted from onshore operations centers.
Source: Ocean Infinity

its target spec, it is easy to deploy another. sizes which only require a skeleton crew because data pro-
Each OBN is about a meter long and weighs around 25 cessing and payload control is conducted from onshore
kilograms. The whole swarm system is containerized, up operations centers.
to 250 OBNs per container, and suitable for deployment Andrew Galbraith, Managing Director of Ocean Infinity,
by the deck crew of an OSV without ROV support. “We says that while ROV-based survey operations are integral to
can scale it down to one OBN or up to 7,000. It doesn’t the Armada solution, the difference lies in their integration
really matter. It’s just a number of containers,” says Tjøm. within a comprehensive system. “ROVs are launched, re-
“Deployment is 50% faster than with ROVs, and recovery covered, and operated from a mother Armada vessel, along-
is 50% faster.” Along with greater simplicity comes a 95% side various other payloads like Ocean Drill, SonicCorer,
drop in GHG emissions, he says. Infinity CPT and AUVs. This consolidated approach opti-
iDROP and some of its competitors expect to move be- mizes efficiency and coordination in offshore operations.”
yond pilot testing this year. His competitors have similar Ocean Infinity has already entered the offshore wind
goals, claiming reduced emissions and dramatic reduction geotechnical market with its newly developed autono-
in deployment logistics. Last year, Blue Ocean Seismic Ser- mous cone penetration test (CPT) device, Infinity CPT
vices claimed its autonomous OBNs outperformed ROV- 250. Last year, for the Ossian wind farm, deep push seabed
positioned OBNs. PXGEO uses hovering autonomous CPTs, seabed seismic CPTs and vibrocore operations were
underwater vehicles rather than ROVs, claiming they are carried out remotely using over-the-horizon commands
capable of deploying and recovering OBNs significantly sent via a remote-control system.
faster and with better precision than traditional methods. Recent advancements in AI and in low orbit, low laten-
Ocean Infinity is not removing ROVs from its autono- cy satellite communications which have greatly enhanced
mous processes, but it is removing on-site human super- remote control solutions and real-time data transfer have
vision. This year, the company signed an agreement with made it possible to do this. Infinity CPT and other pay-
Shell for the provision of lean-crewed and robotic geo- loads communicate directly with control systems on the
physical and geotechnical services. This includes using mother vessel via a lift umbilical. The vessel's control sys-
Ocean Infinity’s Armada surface robot vessels of various tems communicate via satellite to the remote control cen-

32 OFFSHORE ENGINEER OEDIGITAL.COM

 Ocean Infinity has iDROP’s Oceanid OBNs
entered the offshore wind to communicate with
geotechnical market with its others in the swarm
newly developed autonomous and with the ship,
cone penetration test (CPT) using acoustics.
device, Infinity CPT 250.
Source: Ocean Infinity

Source: iDROP
ter and the cloud. Infinity CPT can receive mission state- from the sensors will also be used to supervise or monitor
ments and execute them with minimal supervision. The the status of the robot and to allow the human monitor to
data is automatically processed and reported to clients. intervene if needed from a remote location.
Galbraith sees a future where geotechnical drilling and As more offshore operations are completed and Ocean
sampling will evolve towards fully autonomous operations Infinity’s systems are proven to be effective and reliable, they
on the seafloor. This includes autonomous Ocean Drills will require less supervision. For example, part of the control
capable of investigating the sub-seabed independently, system for Ocean Drill includes a product called Smart Drill
retrieving and storing soil samples with minimal human which will eventually replace the need for a human driller
intervention. Intelligent control system software will facili- who makes operational decisions. Smart Drill relies on a
tate this autonomous functionality, requiring only a mis- training data set relevant to a target borehole to plan and
sion statement for the robot to complete tasks optimally. drill it in an efficient way with minimal supervision.
Robots such as Ocean Infinity’s Ocean Drill or SoniCor- Ultimately, the Amada vessels themselves will operate
er rely on an array of sensors that are used by algorithms to without any onboard crew. They will use zero emission
allow the robot to interface with the environment that it fuel and perform offshore data acquisition and interven-
encounters during the completion of a given task. The data tion operations down to depths of 6,000 meters.

MAy/june 2024 OFFSHORE ENGINEER 33

FEATURE SUBSEA TIEBACKS

© corlaffra/Adobe Stock

THE STRAT
TO SUBSEA
A potentially cost-effe
to develop remo
By Amir

34 OFFSHORE ENGINEER OEDIGITAL.COM

 S
ubsea tieback projects are
transforming the offshore oil
and gas industry by enabling
efficient extraction from re-
mote fields and satellite res-
ervoirs, an approach aiming
to significantly reduce capital, expenditure,
environmental impact, and time-to-market
compared to traditional offshore platforms.
According to many analysts, subsea tieback
projects are set to play an increasingly criti-
cal role in the future of offshore oil and gas
production.
As of June 2024, the trend towards sub-
sea tiebacks was accelerating, with a number
of newly announced subsea tiebacks joining
those already in advanced stages of develop-
ment. Many companies are exploring collab-
orative development and shared infrastructure
models to further drive down costs.

Subsea Tieback Projects

Across the Globe
In the North Sea, one of the most notable
subsea tieback projects is the Cambo field de-

TEGIC SHIFT
velopment, operated by Ithaca Energy, which
acquired Shell’s remaining 30% stake in the
project back in November 2023, making it
the sole owner of the project.
This was followed by Ithaca Energy’s agree-

A TIEBACKS
ment with Eni, in April 2024, for the combi-
nation of assets, creating a major independent
oil and gas company on the UK Continental
Shelf (UKCS).
Located west of the Shetland Islands, the
project involves a subsea tieback to an exist-

ective, efficient means ing floating production storage and offloading

(FPSO) unit Sevan. The Cambo field is pro-
jected to commence production by late 2024

ote oil & gas fields and is expected to achieve a peak output of
170,000 barrels per day.
Subsea 7 is responsible for the engineering,
r Garanovic procurement, construction, and installation
(EPCI) of subsea infrastructure, including
manifolds and flowlines, while TechnipFMC

MAy/june 2024 OFFSHORE ENGINEER 35

FEATURE SUBSEA TIEBACKS

is supplying subsea trees and control systems to ensure ef-

ficient production.
TechnipFMC’s latest subsea trees are designed to handle
high-pressure, high-temperature environments, critical for
the challenging conditions in the North Sea, while Subsea
7’s flexible flowlines, installed in early 2024, are optimized
for long-distance tiebacks and capable of handling multi-
phase flow, ensuring reliable hydrocarbon transportation
to the FPSO.
In West Africa, BP’s developing the Greater Tortue Ah-
meyim (GTA) project involves a 120-km subsea tieback to
a nearshore LNG facility. Scheduled to deliver first gas by
late 2024, this project is pivotal for gas export and energy
supply in the region. TechnipFMC is providing subsea
production systems and flexible flowlines, while OneSub-
sea has been hired to provide subsea boosting systems and
control umbilicals.
TechnipFMC’s flexible flowlines and production sys-
tems, installed in mid-2023, are designed to handle large
volumes of gas over extended distances. These systems
are critical for the project's efficiency and were chosen
for their reliability in deepwater conditions. SLB’s One-
Subsea division provided boosting systems and control
umbilicals in early 2024, ensuring effective gas transport
and system integrity.
In Asia Pacific, the Ichthys LNG project, operated by
INPEX, is undergoing a significant expansion with new
subsea tiebacks planned for 2024 and 2025. This expan-
sion aims to increase the LNG production capacity by ty-
ing back new gas wells to existing subsea infrastructure.
Subsea 7 is managing the EPCI of the subsea systems
and pipelines, while Aker Solutions is providing subsea
production systems and control equipment.
Subsea 7’s involvement includes the installation of ad-
vanced flowlines capable of handling high-pressure gas
transport. These systems were put in place in early 2024
and are designed to minimize hydrate formation and maxi-
mize production efficiency. Aker Solutions’ subsea produc-
tion systems, installed in mid-2023, feature integrated promising to deliver cost-effective and sustainable solu-
control systems that enhance operational efficiency and tions, with most notable steps being made in subsea pro-
reduce downtime. cessing systems, enhanced flow assurance technologies,
subsea robotics as well as digital technologies.
Subsea processing systems are transforming subsea tie-
Supply Chain and backs by allowing hydrocarbon processing directly on the
Technological Advances seabed. Notable advancements include subsea separators,
Technological advancements in the subsea tiebacks pumps, and compressors, like the ones supplied by One-
area of oil and gas developments are also picking up pace, Subsea for Shell's Whale field and BP's GTA projects,

36 OFFSHORE ENGINEER OEDIGITAL.COM

 Credit: Onesubsea

These technologies are integral in projects like LLOG's

OneSubsea will deliver the subsea Shenandoah field and Shell's Whale field, ensuring reliable
production system which will include hydrocarbon flow from subsea wells to processing facilities.
two subsea trees, a two-slot template, Digital twins and remote monitoring technologies are
an umbilical, and a control system for also revolutionizing the management of subsea tiebacks.
OKEA’s Bestla project in the North Sea. Digital twins create a virtual replica of subsea infrastruc-
ture, enabling real-time monitoring and predictive mainte-
nance. Siemens and ABB are leaders in this area, providing
digital twin solutions that enhance operational efficiency
and predictive maintenance capabilities. Their technolo-
gies are deployed in projects such as the Johan Sverdrup
field in the North Sea, allowing operators to optimize pro-
duction and preemptively address potential issues.

Future Outlook
Subsea tiebacks offer significant financial advantages by
leveraging existing infrastructure, which reduces the need
for new platforms and extensive surface facilities. This ap-
proach cuts capital expenditures (CAPEX) and operational
expenditures (OPEX), enabling companies to bring new
fields online faster and more cost-effectively. The integra-
tion of advanced subsea technologies also improves pro-
duction efficiency and reduces maintenance costs, further
enhancing the economic viability of offshore projects.
Also, the offshore oil and gas industry is increasingly
adopting low-carbon strategies, with subsea tiebacks play-
ing a crucial role in minimizing environmental impact. By
using existing infrastructure, subsea tiebacks reduce the
need for new platforms and lower greenhouse gas emis-
sions. Projects like Shell's Whale field and BP's GTA are
integrating renewable energy sources to further reduce
their carbon footprints.
As of June 2024, a number of projects are progressing
globally, supported by advancements in technology and
a focus on sustainability, with the new projects such as
Shell's Dover field in the Gulf of Mexico and Equinor’s
Irpa field in the Norwegian Sea announced, further ce-
which is said to offer subsea boosting systems that enhance menting the trend towards efficient, low-impact extrac-
production efficiency and allow for longer tieback distanc- tion methods.
es using multiphase pumps and compressors. Also, the OneSubsea joint venture and Subsea7 secured
Flow assurance technologies are critical for maintaining the EPCI contract from Norwegian oil and gas company
continuous flow in subsea tiebacks, especially in deepwater OKEA to develop the Bestla project (formerly known as
and long-distance scenarios. Baker Hughes provides ad- Brasse) in the North Sea, offshore Norway. Specifically, the
vanced flow assurance solutions, such as electrically heated companies were selected to accelerate the subsea tieback
pipelines and advanced chemical injection systems, which delivery to aging platforms, comprising a two-well project,
mitigate issues like hydrate formation and wax deposition. with a 13-km tieback to the Brage platform.

MAy/june 2024 OFFSHORE ENGINEER 37

OFFSHORE WIND SHOW ME THE MONEY

Image courtesy DEME

DEME installation
vessel ORION -
now working CVOW

OFFSHORE WIND:
INSIDE THE FINANC

38 OFFSHORE ENGINEER OEDIGITAL.COM

 A
2022 article from consultants McKinsey,
titled Infrastructure investing will never be
the same, drives the point home, with the
consultants writing that traditionally staid
and stable, infrastructure investing had been
shaken up by revolutions in energy, mobility and digitiza-
tion. They add: “These assets offer many of the charac-
teristics that infrastructure investors look for: real assets,
protected market positions, and the potential to generate
stable cash yields. However, to get exposure to these new
asset classes, investors will have to accept a period of sig-
nificant investment and negative cash flow, along with de-

CIAL WEB
velopment, technology and commercial risks.”
Maritime industry participants have been closely fol-
lowing the progress of Charybdis, a Wind Turbine Instal-
lation Vessel (WTIV) being constructed at the Seatrium
AmFELS yard in Brownsville, Texas, by a subsidiary of
Virginia-based utility Dominion Energy, for use in build-
ing its 2.6 GW Coastal Virginia Offshore Wind (CVOW)
project. The vessel will support the installation of 176
turbines on the seabed, 27 miles off the coast of Virgin-
Early 2024 saw a group ia Beach, as well as three offshore substations, and both
of financial deals that have the offshore and onshore transmission configuration. In
implications, in a broad early April, Dominion launched the still-under-construc-
tion WTIV, to be based at Hampton Roads. To achieve
sense, for how offshore wind the milestone, Dominion completed the welding of the
projects may be financed. ship's hull and commissioned the vessel's four legs and
related jacking. A month later, the monopile installation
While offshore wind projects at CVOW began with DEME’s DP3 Installation vessel
might be thought of as Orion. Monopiles, brought in from Rostock, Germany,
being in the ‘utility finance’ are being stored at the Portsmouth Marine Terminal - a
repurposed container handling facility.
basket, they are ultimately As projects move ahead, financiers with expertise in
high-risk deals that might structuring renewable energy deals are now eyeing offshore
better suit the portfolios of wind. Only a few months prior to the Charybdis launch,
Dominion announced that fund packager Stonepeak -
‘infrastructure investment’ which is an alternative investment firm putting money to
which, in recent years, work on behalf of pension funds, endowments and other
has taken a shift towards large institutions, with end-2023 assets under manage-
ment (AUM) of $65.1 billion - had taken a 50% stake in
tolerating more uncertainty the CVOW project. As explained in press announcements,
when it comes to cash flows. Stonepeak will pay Dominion an amount slightly under
$3 billion, representing half of the utility’s capital outlays
By Barry Parker so far. Overall project expenditures are projected at $9.8
billion, but the deal structure builds in contingencies for
costs topping $11 billion, by the expected completion date
late in 2026. Stonepeak is no stranger to shipping, taking

MAy/june 2024 OFFSHORE ENGINEER 39

OFFSHORE WIND SHOW ME THE MONEY

Image courtesy Dominion Energy

Charybdis in the water after its April 2024 launch.

a position in TRAC Intermodal in 2020. A year later, it DEAL STRUCTURING BENEFITS FROM
acquired Teekay LNG LP, a listed limited partnership with GOVERNMENTAL INCENTIVES
47 LNG tankers and 21 LPG carriers, for $6.2 billion. Beyond the construction and deployment phases, the
Importantly, its investment funds have recently been be- long-term nature of operating offshore wind, with fixed
hind wind farms offshore Taiwan. Infrastructure investors, contracts with durations of 10 years or more, is nicely
a broad group, can structure deals in ways that utilities suited for another financial tool, known as the tax equity
cannot, and can apportion risks and returns among mul- package. Offshore wind takes advantage of incentives, in-
tiple entities - examples are the common General Partner cluding tax credits, that were greatly expanded under the
(GP)/ Limited Partner (LP) structures. Thus, they may be Inflation Reduction Act (IRA), enacted in August 2022.
willing to take on more uncertainties than the traditional These types of structures enable the project owners to
utilities. In a recently announced deal, the green-minded raise cash from the sale of investment stakes to financial
investment management giant BlackRock took over the institutions, who can then utilize tax credits from previ-
well-known Global Infrastructure Partners (GIP), with ous programs (Investment Tax Credits, and sometimes,
more than $100 billion AUM. GIP already has presence in Production Tax Credits), combined with new incentives
offshore wind, with holdings producing in the North Sea, in the IRA. Describing the financing for Vineyard Wind
Borkum Riffgrund 2, Gode Wind 1 and Hornsea, as well 1, Avangrid said: “The $1.2 billion investment transaction
as a stake in BluePoint Wind, a future producer in the New was reached with J.P. Morgan Chase, Bank of America and
York Bight still in the planning stages. Wells Fargo, making it the largest single asset tax equity fi-
Another specialist in the sector, Copenhagen Infrastruc- nancing and the first for a commercial scale offshore wind
ture Partners (CIP), through two investment funds with project.” The tax equity package is tied to a highly compli-
K/S structures - set up to attract smaller non-institutional cated ‘partnership flip’ that has been used in many renew-
investors - currently holds a 50% stake in Vineyard Wind able energy packages - after the financial institutions are
1, alongside Avangrid, a subsidiary of the Spanish utility paid off, the project developer, in this case Avangrid and
giant Iberdrola. Electricity production from a handful of CIP, garners all, or nearly all, of the upside.
installed turbines began feeding the Massachusetts grid
in February 2024. When completed later in 2024, the UPS AND DOWNS
62-turbine Vineyard Wind will have a capacity of 806 Beyond the IRA, the Biden Administration is now look-
MW. CIP’s existing portfolio also includes numerous on- ing further out into the future and further offshore, with
shore wind producers, the East Anglia 1 project in the UK, its Floating Offshore Wind Shot initiative, aimed at reduc-
with other offshore projects in its pipeline.

40 OFFSHORE ENGINEER OEDIGITAL.COM

ing costs for electricity generation from floating turbines. that conventional utilities are better suited to focus on
At end April, the Bureau of Ocean Energy Management the more predictable landside transmission/ distribution
(BOEM) announced that it was looking closely at lease businesses. In February, 2024, at around the same type as
auctions in deep waters offshore Oregon and Maine and its announcement of being acquired by BlackRock, GIP
seeking comments to preliminary proposals. bought a 50% ownership share in two offshore projects -
While offshore wind continues to make strides in the South Fork Wind (already producing 132 MW off Long
United States, recent complications have derailed is for- Island) and Revolution Wind (coming online in 2025),
ward momentum. The news is not all bad. Namely, at as Eversource shifted its focus to the onshore side of these
end March, Ørsted got the green light from BOEM on projects. As in the Sunrise Wind transaction, Ørsted will
the 924 MW Sunrise Wind project, with 95 Siemens remain in the deal as a 50% partner.
Gamesa turbines to be deployed south of Block Island. The rationale for utilities terminating offshore wind
In another deal where utility Eversource is pulling back, deals, centering on inflation and various other disrup-
Ørsted also inked a deal to acquire Eversource’s 50% tions, are the very same risks that the Stonepeaks, CIPs
stake in Sunrise Wind. The project has also been green- and BlackRocks of the world, together with the partici-
lighted by New York State Energy Research and Develop- pants in their funds, may be more willing to embrace.
ment Authority (NYSERDA). Going forward, some of the complex financial structur-
The good news comes with setbacks, though. ing may be a way to keep some of the tottering and leaky
In late April, NYSERDA pulled back on an ongoing offshore wind projects afloat. A late 2023 presentation
offshore wind solicitation. Three projects, each with 1.3 from the American Council on Renewable Energy in con-
GW expected production, were put on hold before Power junction with law firm McDermott, Will & Emery LLP,
Purchase Agreements had been signed, as turbine man- suggested that, among project developers, the tax equity
ufacturer GE Vernova backed away from plans to pro- is expected to be the most available financing source over
duce turbines with 18 MW capability, with a likely cost the next three year. As McKinsey, in its brief aimed at
increase related to the installation of a greater number financial institutions, had noted, building relationships
of smaller turbines of around 16 MW. Earlier retreats, with utilities to go after carve-out opportunities can be a
where potential power providers paid termination pen- way to build scale quickly in many areas where credible
alties after having signed Power Purchase Agreements at-scale investments are hard to find.
(PPAs), included Ørsted scrapping its Ocean Wind I and
Ocean Wind II projects off the New Jersey coast, which THE MARITIME CONNECTION
would have delivered a combined 2.2 GW. The developer By definition, there is a maritime component to offshore
said that macroeconomic factors have changed dramati- energy. Can vessel economics make, or break, offshore
cally over a short period of time, with high inflation, ris- wind projects? Vessel assets serving the U.S. Outer Conti-
ing interest rates, and supply chain bottlenecks impacting nental Shelf have been the subject of spirited discussions,
its long-term capital investment. however, few of these dialogues have looked at maritime
Previously scuttled deals had included Avangrid cancel- assets in the context of overall project construction costs.
ling its PPA with utilities in Connecticut, effectively pull- On recently cancelled deals, Ørsted and Avangrid have re-
ing the plug on the Park City Wind, an 804 MW project. ferred to issues and disruptions with supply chains, with
Noting that the original pricing of its output had been vessels not being mentioned specifically, suggesting that
agreed four years earlier, in 2019, Avangrid pointed to “… the problems might be on the land side.
unprecedented economic headwinds facing the industry Where do maritime assets fit into the jigsaw puzzle that
including record inflation, supply chain disruptions, and is offshore wind?
sharp interest rate hikes, the aggregate impact of which When ordered in 2020, Charybdis, with its keel lay-
rendered the Park City Wind project unfinanceable under ing in December of that year, was slated for late 2023
its existing contracts.” completion, at a cost of $500 million. At 85% comple-
A pair of projects that have not been terminated, in tion in May 2023, delivery is anticipated for late 2024/
spite of all the obstacles, further exemplifies offshore early 2025, at an all-in cost exceeding $625 million. Ar-
wind’s suitability for the infrastructure investors at a time guably, two years of its capital cost could be allocated

MAy/june 2024 OFFSHORE ENGINEER 41

OFFSHORE WIND SHOW ME THE MONEY

Image courtesy Ørsted

ECO Edison, the first purpose-built US Flag SOV.

to CVOW before the WTIV moves on to other projects pire 1’s project costs had been estimated at around $3 billion
serving the coastal United States. Assuming a 15 to 20- in 2021, prior to a substantial bump up in early 2024.
year useful life for the asset, which would then move on Construction of vessels in U.S. yards for the offshore
to other installations, around $60 - $80 million capital wind market can benefit from the U.S. Maritime Admin-
cost might be attributed to CVOW. Contrast these ‘back istration’s (MARAD) Title XI program, which provides
of the envelope’ estimates with overall CVOW project government support for long term financings, available for
costs pegged at between $9.8 billion and $11.3 billion - ‘vessels of national interest’. Dominion’s CVOW will be
construction in non-U.S. yards is less. supported by a Service Operation Vessel (SOV), to be op-
Cadeler, a leader in the WTIV space, explained in its erated by CREST Wind, owned by U.S. company Crow-
end 2023 annual report that it had orders with Asian yards ley and Danish specialist Esvagt, under a long-term charter
Cosco and Daewoo in place for six newbuilds, and that the with turbine behemoth Siemens Gamesa now under con-
aggregate capital expenditures for the newbuilds are ap- struction at Fincantieri’s Bay Shipbuilding. According to
proximately €1.8 billion. This works back to €300 million, MARAD filings, this vessel is priced at $168 million. A hy-
or roughly $330 million, for each unit. brid-powered SOV for Equinor’s Empire Wind, also based
When Maersk Supply’s WTIV order with the Sembcorp in Brooklyn, to be delivered from Edison Chouest’s LA-
yard in Singapore, was announced in late 2022, reports in Ship yard in Houma, Louisiana, has been priced at $109
shipping media pegged its capital cost at $350 million. The million, MARAD states, under the reported 10-year char-
WTIV, when delivered, will initially be deployed at Equinor’s ter, that comes to around $11 million each year. In mid-
810 MW Empire Wind field, set to come online in 2026. A May, 2024, another SOV, Eco Edison, also built by Edison
Jones Act compliant subsidiary of Kirby Corporation will Chouest, was christened at the Port of New Orleans. It will
provide a feeder service, bringing components out from a be serving three projects tied to Ørsted and Eversource,
one-time containership terminal in Brooklyn for installation. tasked with handling the land side. These include South
Assuming a 20-year lifespan, the WTIV’s capital cost for a Fork Wind, Sunrise Wind and Revolution Wind, a 704
one-year timeframe works back to $35 million. Overall Em- MW project, offshore Rhode Island.

42 OFFSHORE ENGINEER OEDIGITAL.COM

MAy/june 2024 OFFSHORE ENGINEER 43
CREW TRANSFER VESSELS

Credit: WindServe Marine

C rew
T ransfer
Vessels:

BUILDING THE
U.S. FLEET
A fleet of Jones Act compliant crew transfer
vessels is growing in stride with the United
States’ burgeoning offshore wind industry.
By Eric Haun

44 OFFSHORE ENGINEER OEDIGITAL.COM

W
hen the United Sates’ first purpose- In 2023, Senesco delivered two more vessels for Wind-
built crew transfer vessel (CTV), Serve Marine: WindServe Genesis and WindServe Jour-
Atlantic Pioneer, was delivered in ney; and Gulf Craft in Franklin, La. delivered WINDEA
2016, the country’s offshore wind Intrepid for WINDEA CTV, a partnership between Horn-
industry was just getting off the blower Wind and MidOcean Wind.
ground. In the years that followed, the industry has been Palatka, Fla. shipyard St. Johns Ship Building in Janu-
building up—perhaps slower than expected at times—but ary of this year announced its first CTV delivery: WIN-
today is moving forward in earnest. DEA Courageous for WINDEA CTV. In March, Blount
Coinciding with this build-up is the growth of a fleet delivered Gripper, the first CTV for American Offshore
of Jones Act qualified vessels, including newbuilds and Services (A-O-S), a joint venture formed in 2020 by lead-
conversions, to service this nascent industry. Among these ing European CTV operator Northern Offshore Services
are CTVs, which ferry personnel and light equipment to (N-O-S) and U.S.-based investment firm OIC.
support the construction and long-term service of offshore
wind farms. On Order and Under Construction
Today, nearly 30 of these vessels are in service, under There are many more CTVs on order and under con-
construction or on order in the United States, and it is struction at U.S. shipyards, including the aforementioned
expected that dozens more will be built in the years ahead yards, as well as Gladding-Hearn Shipbuilding in Somer-
as more wind farms take shape in U.S. waters. set, Mass.; Breaux Brothers in New Iberia, La.; and Metal
Shark in Franklin, La. Other shipyards such as Platypus
In-service Newbuilds Marine in Port Angeles, Wash. have agreements in place to
Atlantic Pioneer, built by Blount Boats in Warren, R.I., build CTVs, but firm orders are yet to be confirmed.
for Atlantic Wind Transfers (AWT) was literally the pio- The next CTV expected for delivery is another WIND-
neer, built for America’s first commercial wind farm off of EA vessel, WINDEA Enterprise, which started sea trials in
Block Island, where it remains in service today. June, according to builder St. Johns Ship Building. Other
The next U.S.-built CTV to come along was the Wind- CTVs scheduled for delivery this year include AWT’s At-
Serve Odyssey, delivered by North Kingstown, R.I. ship- lantic Resolute—also at St. Johns—as well as WindServe
builder Senesco Marine for sister company WindServe Marine’s WindServe Enterprise at Senesco and a yet-to-be-
Marine in 2020, followed by another Blount-built boat, named CTV for Patriot Offshore at Gladding-Hearn.
Atlantic Endeavor, again for AWT, handed over in 2021. Firm CTV orders in the books of U.S. shipyards have

THE U.S.’ FIRST CYV, ATLANTIC PIONEER, AT THE BLOCK

ISLAND WIND FARM OFF RHODE ISLAND.

Credit: AWT

MAy/june 2024 OFFSHORE ENGINEER 45

CREW TRANSFER VESSELS
Credit: WindServe Marine Credit: A-O-S

Credit: Gulf Craft

scheduled delivery dates through 2026, and there more Volvo Penta engines paired with IPS propulsion, while one
than a dozen options rumored or known to exist. owner with eight vessels in total, including options, has
opted for MAN engines, including two with HamiltonJet
Design and specifications waterjets and the remainder with CPP. Two vessels in the
Leading designers of the United States’ newbuild CTV U.S. CTV fleet are powered by Scania engines, both with
fleet include Incat Crowther, NOS, Chartwell Marine and HamiltonJet waterjets.
BMT. The aluminum catamarans range in size from 19.7
meters to 30 meters long (LOA), with beams ranging from Conversions
about 7 meters to 11 meters. The vast majority have capac- Several existing vessels have also been converted to gain
ity for up to 24 passengers and are generally manned by a new life as a CTV within the U.S. offshore wind sector.
crew of six to eight. For example, in 2023, Hornblower Marine announced it
To date, all CTVs ordered in the U.S. are diesel me- converted the former offshore supply vessel (OSV) Gate-
chanical, though a handful are described as “hybrid- way Endeavor at its facility in Bridgeport, Conn. for WIN-
ready”, meaning they are built with space to accommodate DEA. Hornblower also converted former fishing vessel
a potential conversion to hybrid propulsion in the future. Nice Day Too for Coast Line Transfers. Now a CTV, the
Most of the vessels delivered and on order are powered by vessel has been renamed Capt. Les Eldridge.

46 OFFSHORE ENGINEER OEDIGITAL.COM

 FORMER OSV GATEWAY ENDEAVOR HAS BEEN
CONVERTED AND IS NOW OPERATING AS A
CTV IN THE U.S. OFFSHORE WIND INDUSTRY.

Credit: Hornblower Group

MAy/june 2024 OFFSHORE ENGINEER 47

GREEN HYDROGEN ELECTROLYZERS

© Orange Dragon Studio

ELECTROLYZERS TE
MEET GREEN HYDR
Electrolyzer technology is going to have to
get cheaper and more scalable if it is going
to enable a global green hydrogen economy.

By Wendy Laursen

48 OFFSHORE ENGINEER OEDIGITAL.COM

ECH RAMPS UP TO
ROGEN DEMANDS
S
omewhere on a benchtop in Brimsdown, Electricity makes up most of the production cost of
London, there is a lab-scale prototype that green hydrogen, and researchers around the world are try-
can extract the platinum and polymers from ing to reduce that, but Johnson Matthey’s benchtop unit is
PEM electrolyzer membranes so they can be also representative of the fact that, despite new electrolyzer
recycled into new membranes. technologies well past lab-scale testing, there will still be a
Why? To reduce the cost of electrolyzers and therefore major role played by more established technologies such as
green hydrogen. Electrolyzers use electricity to split water PEM and alkaline electrolyzers.
into hydrogen and oxygen, and to meet global expecta- Current technologies can be roughly categorized into
tions for 2030 and then 2050, they must produce green two main groups: those suitable for use with intermittent
hydrogen cheaper than hydrocarbon-based methods. They renewable energy like PEM, pressurized alkaline and an-
must also be able to do this at scale. ion exchange membrane (AEM) and those suited to grid

MAy/june 2024 OFFSHORE ENGINEER 49

GREEN HYDROGEN ELECTROLYZERS
Image courtesy of Air Liquide

The inauguration of Air Liquide

and Siemens Energy Gigawatt
electrolyzer factory paves the
way to renewable hydrogen
development at scale.

Image courtesy of Accelera Image courtesy of Fortescue

Accelera by Cummins leadership and distinguished In April, Fortescue officially opened an electrolyzer
guests cut the ribbon at the opening of Accelera’s manufacturing facility in Australia – one of the first
first electrolyzer production site in the U.S. globally to house an automated assembly line.

power or being incorporated into industrial plant like at- duced at peak times by running electrolyzers and then stor-
mospheric alkaline and solid oxide electrolysis (SOE). ing the hydrogen for later. “Here, there’s an important role
SOE is a growing technology that can also operate in to play for green hydrogen which can operate at a different
reverse to act as a fuel cell, and AEM, a development of the scale to batteries to balance out fluctuations in the supply
PEM concept but with cheaper materials, is an emerging of, and demand for, renewable energy production,” says
technology. While alkaline electrolyzers use a liquid elec- Synne Myhre Jensen, Public Affairs Advisor at Norwegian
trolyte, and PEM electrolyzers use a polymer electrolyte, hydrogen company Hystar. As part of the company’s HyPi-
SOE use a solid-state ceramic electrolyte and requires heat lot project, collaborator Equinor is planning to demonstrate
to operate. But new variations on existing themes continue dynamic hydrogen production tailored to the variable out-
to emerge as the industry tackles cost and scalability chal- put typically found in offshore wind applications.
lenges, and each have different materials, chemistries and Johnson Matthey will supply membrane electrode as-
heat and pressure requirements. semblies for Hystar’s patented PEM technology. “Each of
Using solar and wind energy, green hydrogen can be pro- our stacks can produce two to three times more hydrogen

50 OFFSHORE ENGINEER OEDIGITAL.COM

 Image courtesy of CSIRO

CSIRO researchers
Dr. Gurpreet Kaur and
Dr. Sarb Giddey with
the high temperature
furnace for sintering
the ceramic tubes.

than a conventional stack, enabling more hydrogen pro- monoxide) – something that distinguishes it from existing
duction at peak production times and capitalizing upon PEM and alkaline technologies. It is also highly scalable.
lower electricity prices,” says Jensen. “During these mo- “There is a limit to what extent efficiency of electrolyz-
ments, the exact energy consumption is not important, as ers can be further improved,” says Dr Sarb Giddey, Senior
the electricity price is low anyway. It is then a matter of Principal Research Scientist and Group Leader at CSIRO.
how much hydrogen you can produce by fully utilizing the “The efficiency will stay in the 70-75% range maximum
renewable sources available.” The technology is also more due to the thermodynamic limits and the losses related to
compact and safer than traditional PEM electrolyzers due balance of plant. The electrolyzer cost, electricity costs,
to built-in air circulation to prevent combustion, she says. and scale are still the major challenges for the large-scale
Another project, the EU-Funded HYScale project, aims adoption of hydrogen production via electrolysis for decar-
to upscale an efficient, durable, sustainable, and cost-effec- bonization of various energy sectors.”
tive AEM electrolyzer technology. Project partner CEN- While SOE technology holds promise for power-to-X
mat claims to have re-engineered electrolysis from scratch applications, it has a limited lifetime and its dynamic capa-
to produce a system that operates with catalysts and elec- bilities are currently a barrier to large-scale commercializa-
trodes free of critical raw materials and anion exchange tion, so Denmark’s Dynelectro has developed a novel SOE
membranes free of forever chemicals. technology that uses a mix of alternating and direct current
Australia’s research organization CSIRO is developing and can accommodate fluctuating green power and tem-
both PEM and SOE technology. Its high-efficiency tubu- perature variations. This is expected to increase the lifetime
lar SOE technology uses a series of sintered ceramic tubes of SOE stacks from two to 10 years.
and easily obtainable metals and can efficiently produce The scale-up of well-established technology is already
hydrogen and syngas (a mixture of hydrogen and carbon underway. Accelera is developing 25MW PEM electro-

MAy/june 2024 OFFSHORE ENGINEER 51

GREEN HYDROGEN ELECTROLYZERS

DNV predicts that electrolyzer costs will drop 25% by 2030 and 50% by 2050.

Image courtesy of DNV

lyzer modules suitable for larger electrolyzer projects

(>200MW). The systems will be manufactured in its new
US facility and also at another new plant in Spain.
Manufacturing speed is also increasing. Air Liquide and
Siemens Energy officially inaugurated their joint venture
gigawatt PEM electrolyzer factory in Berlin last year. The
factory leverages robotics for series production, as does
Fortescue’s new PEM factory in Australia.
As a result of all the development underway, DNV pre-
dicts that electrolyzer costs will drop 25% by 2030 and 50%
by 2050. Another prediction is that electrolyzer capex will
drop and the market will consolidate mid-term, especially
for large-scale electrolyzers. This could lead to supply chain
optimization that could further reduce production costs.
But where? China could disrupt the industry and take the
same commanding market share it has in other industries
despite the US pumping money into the industry (Nel and
its partners received around $90 million from the Depart-
ment of Energy for seven electrolyzer projects in March).
While much of China’s electrolyzer production is current-
ly satisfying the domestic market, that is likely to change.
Bright-H Technology recently claimed industry leading
energy efficiency for its alkaline technology, and Sungrow
Hydrogen says its latest electrolyzer not only breaks the re-
cord of hourly hydrogen yield per PEM stack in the Chinese
domestic market but also catches up with advanced interna-
Johnson Matthey will supply membrane
tional technologies in a number of key indicators.
electrode assemblies for Hystar’s
So, the future of electrolyzers may well be found on a
patented PEM technology.
test bench in Hefei.
Image courtesy Hystar

52 OFFSHORE ENGINEER OEDIGITAL.COM

THE FUTURE OF OFFSHORE
TECHNOLOGY TODAY
Connecting a global market of customers and suppliers with cutting
edge offshore energy technology is Offshore Engineer Magazine’s
sweet spot. With our proven readership, we will deliver the
right audience for your media budget.

Learn more at
OEDIGITAL.COM

MAy/june 2024 OFFSHORE ENGINEER 53

THE FUTURE OF OFFSHORE ENERGY & TECHNOLOGY.
NEW PRODUCTS SAFETY SYSTEMS

ZELIM EMERSON

Zelim’s AI-Powered ZOE Software Emerson’s Roxar Downhole Monitoring Tool

Zelim has developed ZOE software, an artificial intel- Emerson has developed a suite of Roxar downhole moni-
ligence (AI)-supported detection and tracking solution de- toring systems said to provide continuous access to pressure
signed to provide automated person overboard detection and temperature data from active wells, a critical require-
and alerts. Developed in collaboration with the U.S. Coast ment to operate safely, optimize production, and maintain
Guard, Zelim’s ZOE is said to improve the probability of well integrity for oil and gas companies. Collecting the data
detection of people in the water with 96.8% accuracy for from active wells is challenging due to the harsh environ-
in water from 337 meters. When optical zoom is applied ment, limited onsite staff, and associated safety risks.
the distance increases, the company claims. Emerson’s Roxar system provides operational insight
ZOE offers instant detection of passengers/ crew who needed to assist in maintaining high production levels, risk
fall overboard, tracking them through the fall and on the management, and regulatory requirements compliance.
sea surface, providing geo-location information of the per- Norwegian energy giant Equinor recently selected Emerson
son in water to support rescue co-ordination. to provide Roxar advanced well completion monitoring sys-
The ZOE software was installed on board the Valaris tems for its Rosebank oil and gas field in the North Sea, the
Stavanger rig in February 2024. Zelim collaborated with the U.K.'s largest undeveloped offshore field. According to Emer-
Texas-based offshore drilling contractor Valaris to custom- son, its suite of Roxar downhole monitoring tools will empow-
ize the solution for the specific requirements of jack-up ves- er Equinor to use advanced oil recovery techniques, optimize
sels. Following an initial trial period, Valaris will evaluate the reservoir performance and verify well integrity in real time.
suitability of the system for use on other assets in its fleet.
In the incidence of a person overboard, ZOE transmits Wind Power LAB’s LASSIE
an automatic alert to the radio operator, who can see a Wind Power LAB has introduced an innovative light-
10-second clip of when the alert was triggered whilst si- ning surveillance tool tailored to combat strike damages to
multaneously viewing live footage, according to Zelim. offshore wind farms through early detection of potential
ZOE continues to track the person in the water, thereby risk. The new lightning analysis service, known as LASS-
increasing their chances of successful rescue. IE, offers major cost savings as repairs are identified earlier
The system logs the position of the vessel and the per- than expected, through the use of the technology-based
son overboard at the point of detection for mayday call monitoring tool, according to the company.
geo-location, as well as providing the radio operator with a LASSIE, which is cloud based and non-intrusive with
mayday script and actions checklist, ensuring fast and ac- no turbine installation, enables proactive management of
curate reporting under stressful circumstances. wind farms by prioritizing intervention for turbines in

54 OFFSHORE ENGINEER OEDIGITAL.COM

© hafenkieker Adobe Stock

WIND POWER LAB

SALUNDA SURVITEC

high-risk areas for lightning strikes. ments. It works by triggering an alarm when an individual
This subsequently avoids significant cost escalation, enters an exclusion or Red Zone, sending notifications to
such as unnecessary labor and materials, and potential both the individual’s personal locator and the area author-
catastrophic blade failure through non-detection. ity, allowing both parties to take corrective action.
The software features a proprietary algorithm which com-
bines multiple data points from weather reporting systems. Survitec Gauntlet
It also incorporates International Electrotechnical Commis- Survitec launched a new energy containment safety de-
sion (IEC) standards for electrotechnology compliance and vice designed to reduce the risks associated with catastrophic
Wind Power LAB’s rotor blade subject matter expertise. value actuator failures. Severe injury or death can be caused
Through early detection of potential lightning impacts, by the explosive forces released if a high-pressure spring-
wind farm owners and operators can ensure the efficient loaded actuator device fails, along with significant damage
use of field resources to prioritize repairs. to equipment and facilities. However, there is often a lack of
As a result, the cost savings reduce lost production days regular inspection and maintenance, and the risks have at-
by an average of 43% and allow for targeted external blade tracted little attention in terms of technology or regulation.
inspections, Wind Power LAB claims. Compatible with all valve actuator types, the Survitec
Gauntlet is a protective sleeve constructed from light-
Salunda’s Crew Hawk weight “bullet-proof ” para-aramid armoring, ten times as
Salunda, a provider of digitized solutions for safety criti- strong as steel, and designed to contain the unpredictable
cal industries, will install its Crew Hawk Red Zone moni- forces of failure.
toring solution to protect the personnel working on the Technically qualified by Lloyd’s Register, the Survitec
offshore jack-up rig in the Middle East. Gauntlet provides immediate containment protection, en-
Salunda’s Crew Hawk actively tracks crew movements hancing safety measures and minimizing potential hazards.
and state of safety-critical equipment in real-time, providing It is of minimal weight, placing no additional stress on the
feedback that spotlights safe operations and minimized risk. actuator, and protects the workings of the actuator from
The U.K.-based company pioneers the developed cut- further corrosion and component degradation.
ting-edge technology with a specialized focus on moni- The concept of the safety device was developed due to is-
toring solutions for upstream, drilling vessels. Using the sues identified in the North Sea oil and gas sector, oil rigs,
patented technology, Salunda enables precise location platforms, and floating installations, such as FPSOs and FS-
monitoring, reducing the risk of accidents and optimiz- RUs. The Survitec Gauntlet can be applied to any facility that
ing workflow efficiency, particularly in Red Zone environ- operates actuator valves and where risks need to be mitigated.

MAy/june 2024 OFFSHORE ENGINEER 55

 by the numbers

R I G S
Worldwide Latin America & the Caribbean Russia & Caspian
Rig Type Available Contracted Total Utilization Rig Type Available Contracted Total Utilization Rig Type Available Contracted Total Utilization
Drillship 7 70 77 91% Drillship 26 26 100% Jackup 8 2 10 20%
Jackup 179 293 472 62% Jackup 3 5 8 63% Semisub 1 2 3 67%
Semisub 30 42 72 58% Semisub 3 8 11 73%
Global Average Dayrates
Africa Middle East Floaters Jackups
Rig Type Available Contracted Total Utilization Rig Type Available Contracted Total Utilization Ultradeep water 470.0 High-spec 167.5
Drillship 15 15 100% Jackup 37 136 173 79% Deepwater 361.5 Premium 139.6
Jackup 14 14 28 50% Drillship Midwater 403.9 Standard 98.1
Semisub 2 2 100%
North America
Asia Rig Type Available Contracted Total Utilization
Rig Type Available Contracted Total Utilization Drillship 2 22 24 92%
Drillship 3 5 8 63% Jackup 25 26 51 51% This data focuses on the marketed rig fleet and excludes
Jackup 81 76 157 48% Semisub 1 3 4 75% assets that are under construction, retired, destroyed,
Semisub 18 4 22 18% deemed noncompetitive or cold stacked.
Oceania
Europe Rig Type Available Contracted Total Utilization
Rig Type Available Contracted Total Utilization Drillship
Drillship 2 1 3 33% Jackup 1 1 100% Data as of June 2024
Jackup 10 30 40 75% Semisub 6 6 100% Source: Wood Mackenzie Offshore Rig Tracker
Semisub 7 17 24 71%

d i s c o v e r i e s & R e s e rv e s
Offshore New Discoveries
Water Depth 2019 2020 2021 2022 2023 2024
Deepwater 20 13 14 22 15 9
Shallow water 88 48 59 38 60 11
Ultra-deepwater 18 12 7 22 12 3 Shallow water (1-399m) Deepwater (400-1,499m)
Grand Total 126 73 80 82 87 23 Ultra-deepwater (1,500m+)

Offshore Undeveloped Recoverable Reserves

Water Depth Number Recoverable Recoverable
of fields reserves gas mboe reserves liquids mbl
Deepwater 593 50,827 23,217 Contingent, good technical, probable development.
Shallow water 3,269 460,474 154,206
Ultra-deepwater 349 43,861 26,889 The total proven and probably (2P) reserves which are
Grand Total 4,211 555,161 204,311 deemed recoverable from the reservoir.

Offshore Onstream & Under Development Remaining Reserves

Region Number Remaining Remaining
of fields reserves gas mboe reserves liquids mbl
Africa 578 19,145 11,641
Asia 841 16,630 7,453
Europe 762 12,359 11,576
Latin America and the Caribbean 193 6,992 40,777
Middle East 138 89,351 150,671
North America 468 2,565 12,885 Onstream and under development.
Oceania 85 10,829 1,092
Russia and the Caspian 59 16,960 12,647 The portion of commercially recoverable 2P
Grand Total 3,124 174,832 248,743 reserves yet to be recovered from the reservoir.
Source: Wood Mackenzie Lens Direct

56 OFFSHORE ENGINEER OEDIGITAL.COM