Oil & Gas Investment Revival as Confidence Surges

Oil & Gas Investment to Revive as Confidence Surges
2018 Jan – Feb
M&O Key to
Singapore
Singapore will stay relevant in the global marine and offshore
engineering (M&OE) industry despite the recent headwinds from
a prolonged sectoral downturn. In 2018, the oil & gas sector is
expected to continue its recovery, as oil majors adapt to the lower
oil prices environment and are better positioned to proceed
with final investment decisions.
There seems to be light at the end of the tunnel as the industry takes the first few tentative steps out
of the oil price malaise, the journey is far from over but at least we are on the road to recovery.
PETROMINMarine&Offshorejan-Feb2018VOL.1NO.01

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January to February 2018 1
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contents
Reports
06
Gas Providing Timely Boost
Singapore will stay relevant in the global marine and offshore engineering (M&OE)
industry despite the recent headwinds from a prolonged sectoral downturn. In 2018, the
oil & gas sector is expected to continue its recovery, as oil majors adapt to the lower oil
prices environment and are better positioned to proceed with final investment decisions.
14
Singapore Keen to Remain a Relevant Player
The island-nation, which does not possess hydrocarbon reserves, has forged a niche
in the last few decades in the energy and marine sectors. Having been hit by the
downturn the last three years it is a critical shot in the arm for the industry that the
country’s government considers the marine and offshore engineering industry key for
future economic growth.
20
Oil & Gas Investment to Revive as Confidence Surges
There seems to be light at the end of the tunnel as the industry takes the first few
tentative steps out of the oil price malaise, the journey is far from over but at least
we are on the road to recovery.

January to February 20182
26
Bids & Pieces
36
Scene & Heard
Technology
42
Powering the Seas
Compared to direct diesel drives, diesel electric propulsion systems are technically
and operationally superior in virtually all applications. This superiority has been a
major reason for the steadily growing demand for diesel-electric main drives in marine
engineering applications.
50
Era of Automation
Despite being one if the driving industries of cutting-edge technology the oil and gas
industry still seems resistant to rig automation. The recent depressed oil prices have
nudged the industry to embrace the technology. This article looks at some of the benefits
and proponents of rig automation.
Regular Focus
04 Editorial
26 Bids & Pieces
36 Scene & Heard
59 Calendar of Events
57 Subscription Form
Petromin Marine & Offshore is a magazine
dedicated to the technology of the oil &
gas and marine industries in all its forms.
Within the pages of the magazine you will
find information, based on technical articles
from the experts in their respective fields, as
well as reports on various topics relating
to the industry as a whole. Also within the
pages of Petromin Marine & Offshore you
will find interviews, case studies and field
reports written by our staff or technical
correspondents. We also cater to the IT,
instrumentation and control of the energy
and marine industries.
Covering both energy and marine activities
and starting from the technology of seismic
surveying, through interpretation and
application, we will present articles on
all aspects of drilling, reservoir treat-
ment, well treatment, testing, comple-
tion, through to production, storage and
transportation. Pipelines figure highly in
the technology covered as does FPSOs,
drilling rigs, production platforms and
gas handling equipment.
While we are indebted to our regular
contributors, we are at all times on the
lookout for new material and if you or
your company have a technology you
would like to share, or a paper you feel de-
serves publication, please do contact us at
editor@media-buz.com with your suggestions.
If there are aspects of the upstream industry
you feel are missing from our coverage,
please do e-mail us and tell us. We will do
our best to supply coverage of that aspect
in the future.
MCI (P) 101/02/2018
ISSN 0129-1122
Published by Mediabuz Pte Ltd.
Printed by KHL Printing Co Pte Ltd

January to February 20184 January to February 20184
Editorial
2018 looks set to be a watershed year
for the oil and gas and marine industries.
The last few years have been destabiliz-
ing for the oil and offshore industries. Mr
S. Iswaran, Singapore’s Minister for Trade
and Industry, noted that that the past three
years have been “difficult” for the indus-
try, and that while recovery is in sight with
crude prices stabilising above US$60 of
late, oil companies are still cautious.
In itself that’s nothing to shout about;
but when you juxtapose that sentiment
of cautiousness with what used to be
desperation and desolation, it smells
of roses. Just two years ago there were
fears that the offshore oil industry would
never recover! There were some quarters
who believed that the oil prices would re-
main depressed and never reach a point
where deepwater E&P would return to
being financially viable.
All Geared Up…
The marine engineering sector was not
spared in this period. To illustrate, ac-
cording to the President of the Shipbuild-
ing and Marine Engineering Employees’
Union (SMEEU) (Singapore), Mr Tommy
Goh, over 40,000 workers have either
been retrenched or not had their contracts
renewed since early 2016, when oil prices
tumbled to below US$30 a barrel.
However, as I’ve consistently maintained,
the durability of the oil and marine indus-
tries, and their ability to progress through
innovation and technological advance-
ments cannot be overstated. To once
again use Singapore as a microcosm, de-
spite the downturn of the last few years a
new blueprint has been launched recently
to lift the marine and offshore engineering
(M&OE) sector out of the doldrums. The
sector is expected to add 1,500 new jobs
and contribute S$5.8 billion to Singa-
Chief Editor
Mohana Velu Rajendran
Group Editor
Vishnu Pillai
Tel: 6222 3422
email: editor@media-buz.com
Graphic Artist
Chua Ai Hwa
email: graphics@media-buz.com
Advertising Co-ordinator
Jaquilyn
Tel: 6222 3422
email: marketing@media-buz.com
Subscription/Circulation
Mary
Tel: 6222 3422
email: info@media-buz.com
Conference Co-ordinator
Mary
Tel: 6222 3422
email: info@media-buz.com
EDITORIAL ADVISORY BOARD
Dr. Michael J. Economides
Professor of Chemical Engineering
University of Houston
Prof. F.E. Banks
Uppsala University
Sweden
Prof. Eugene M. Khartukov
International Center for
Petroleum Business Studies
Moscow, Russia
Stuart Crampin
University of Edinburgh
Lau Siew Ming
JP Kenny Wood Group
Saeid Mokhatab
Process Technology Manager
Tehran Raymand Consulting Engineers
Correspondents
Australia/PNG
Brian Wickins
Dhaka, Bangladesh
Ghazi Mahmud Iqbal
Beijing, China
Wang Yong
Delhi, India
Siddharth Raghavan
New Zealand
Neil Ritchie
Pakistan
Dr Salman Salf Ghouri

pore’s gross domestic product (GDP) by
2025 through its Industry Transformation
Map (ITM).
The need to re-evaluate, innovate and up-
grade, and the need to keep clients and
peers engaged, is pervasive and encom-
passes every sector within the energy and
marine industries, meaning that as provid-
ers of a knowledge sharing platform we
are under the same pressures. I dare say
we have responded positively and effec-
tively (which we believe will be proven in
time). After almost a year of surveys, dis-
cussions and planning, we have utilised
the industry players’ input to revamp our
publications and technical events, as well
as adding new associated services for our
working partners.
Starting with this publication, you would
have immediately realised the change of
name from PetroMin to Petromin Marine
& Offshore, as well as a fresh new look.
The scope of the content too has been
widened, with the absorption of PetroMin
Pipeliner meaning that the pipelines sec-
tor will now be covered by Petromin Ma-
rine & Offshore, and the incorporation
of marine technologies. The offshore and
marine sectors, though different in many
ways, share enough synergy to make this
a logical progression and will ensure
the publication becomes a more holistic
reference point for information. The calls
for more information on trends, industry
direction, and legislative issues have also
been heeded, and you will find in this is-
sue, and those to follow, answered.
Hydrocarbon Asia, the oldest regional
magazine focused on the downstream
sector, has been renamed Petromin Hy-
drocarbon Asia, and it too has had its
look upgraded. The publication will also
now cover alternative fuels as the de-
mands for greener energy escalate.
Besides our technical events, mainly due
to an overwhelming demand for B2B in-
teraction, we have also initiated proceed-
ings to organise roundtable discussions
and webinars for mid-scale interaction, as
they are more focused and objective-ori-
ented than conferences and trade shows.
What we are providing are tailor-made
solutions to meet the needs of the industry.
As always, our aim is the be the premier
information provider for the industry, to be
the link between the various components
and players of the industry, and we will
aid the resurgence of the oil & gas and
marine industries.
Group Editor
Vishnu Pillai
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Gas Providing Timely Boost
Singapore’s strategic location between
the Indian and Pacific Oceans and
near the Strait of Malacca has allowed
it to become one of Asia’s major pet-
rochemical and refining centers and
oil trading hubs. Singapore has world-
class refining, storage, and distribution
infrastructure, and Jurong Island on
the southern edge of the country is the
center of Singapore’s petrochemical
industry. Several major international
energy companies operate retail net-
works in the area. Singapore’s gov-
ernment plans to promote long-term
growth in refining capacity and oil
storage capacity in order to maintain
its market position as a refining and
oil-trading leader.
Singapore has no indigenous hydrocar-
bon reserves and must import all its crude
oil and natural gas. In 2015 Singapore’s
total primary energy consumption includ-
ed approximately 87% of crude oil and
petroleum products, 13% of natural gas,
and less than 1% of other fuel sources,
according to the recent BP Statistical Re-
view of World Energy.
“Singapore will stay
relevant in the global
marine and offshore
engineering (M&OE)
industry despite the
recent headwinds from
a prolonged sectoral
downturn. In 2018,
the oil & gas sector is
expected to continue its
recovery, as oil majors
adapt to the lower oil
prices environment and
are better positioned
to proceed with final
investment decisions.
”
Country Feature

Singapore has carved a niche as an enabler in the
energy and marine industries.
However, the lack of natural resources has not hindered Sin-
gapore from being a key player in the energy and marine in-
dustries. In tandem with how the country’s economy was built,
Singapore managed to become a key player by banking on
a long-term vision, a strong workforce, a focus on engineering
and technologies, political stability and excellent infra-structure.
The government of Singapore has played a vital role in promot-
ing the country as an engineering hub as well as an effective
platform for companies to locate their regional headquarters.
In essence, Singapore has carved a niche as an enabler in the
energy and marine industries.
In the upstream sector Singapore is active across various
fields, but two points of focus is vessel construction and re-
pair and LNG.
Construction, Conversion and Rehabilitation
The Singapore marine industry has seen significant growth
over the last 40 years, evolving from a small regional ship
repair and building centre into a world-class industry that
serves international clientele. The industry includes ship re-
pair, shipbuilding, rig-building and offshore engineering,
and other marine supporting services.
Today, Singapore is one of the world’s premier ship repair and
ship conversion centres as well as a global leader in the build-
ing of jack-up rigs and the conversion of FPSO (Floating Produc-
tion Storage and Offloading) units. It is also a niche player in
the construction of customised and specialised vessels.
Globally renowned for its reliable and convenient range of
comprehensive marine services, Singapore is a one-stop ma-
rine centre for shipowners, managers and agents around the
world. Generating an annual turnover of close to $10 billion
and employing some 100,000 workers, the marine industry
plays a crucial part in Singapore’s economic growth. Ship re-
pair and conversion form the backbone of the local marine
industry, accounting for more than half of the total revenue.
Ship repair in Singapore dates back to when the first dry dock
was built in 1859. Due to active government encouragement
and technology transfers in the late sixties, business became
more international, and by the mid-seventies, Singapore was
firmly established as a major international ship repair centre,
particularly for larger vessels. It has maintained its leading
position since then.
The marine and offshore engineering (M&OE) indus-
try accounted for S$3.6 billion, or 1 per cent of Sin-
gapore’s gross domestic product and employed more
than 23,000 locals in 2016. The industry has also
grown from its humble beginnings of just four domes-
tic marine firms to an eco-system anchored by homeg-
rown international names, notably Keppel Offshore &
Marine (KOM) and Sembcorp Marine, and backed by
over 1,000 small and medium enterprises.

Singapore ship repairing has gained international recog-
nition for its specialised re-construction jobs, which range
from conversion to jumboisation. The extensive capabilities
in ship repairing means a multitude of repair, reconstruction
and conversion jobs can be carried out with high quality
and timely delivery. The versatility of local shipyards is re-
flected in the wide range of ship conversions undertaken.
Ship repair is carried out in shipyards and at the anchor-
age. To meet the needs of shipowners using the port, voyage
repairs are readily available on call. Projects include the
conversion of car carriers to livestock carriers and tankers to
FPSOs, just to name a few.
Over the years, Singapore shipbuilders have earned a reputa-
tion for fair prices, quality workmanship and short delivery time,
for a range of specialised and customised vessels. Shipbuilding
has progressed from minor projects such as the construction of
wooden launches and fishing boats to major projects like steel
vessels and specialised ships. Vessels built include cableships,
container vessels, product tankers, naval ships, landing ship
tanks and patrol crafts.
In 1969, Singapore delivered its first jack-up rig. Five years
later, it grew from infancy to become the largest builder of
jack-ups in the world. Today, it still enjoys this premier sta-
tus. The rig-builders are competent in repairing, upgrad-
ing, converting and building jack-up rigs, semi-submers-
ibles, drillships, drilling tenders and FPSOs. They also
have the expertise and experience to produce rigs of their
own designs.
Singapore shipyards have over the last three dec-
ades gained prominence for quality, specialised serv-
ices, timely delivery, skilled and disciplined workforce,
strong project management capabilities as well as the
ability to handle sophisticated turnkey projects with
complex requirements.
In line with the growth of ship repair, shipbuilding and rig-
building activities, Singapore’s marine supporting industry
has also evolved. The supporting industry ranges from small
to medium-sized workshops to comprehensive factory facili-
ties. Many overseas manufacturers have also set up local
agencies for their own manufacturing, sales and services fa-
cilities in Singapore.
There is a comprehensive range of marine services in various
industries such as electronics communication and navigation,
automation precision machining, and corrosion control. In ad-
dition, there are numerous factories manufacturing or servicing
marine equipment and components such as diesel engines and
turbochargers. Other services available include ship design and
consultancy, marine inspection and surveying.
One of Singapore’s flagship rig / vessel builders is Keppel Off-
shore & Marine (Keppel O&M). Until a decade ago, Keppel’s
stable of shipyards ran as separate entities. Their integration in
2002 formed Keppel O&M, one of the world’s largest offshore
and marine groups today. This strategic move brought together
three different operating companies - Keppel FELS, the lead-
ing rig designer and builder; Keppel Shipyard, the expert in

shiprepair and conversions; and Keppel Singmarine, the ship-
building specialist.
Mr Choo Chiau Beng, CEO of Keppel Corporation and Chair-
man of Keppel O&M till this year, elaborated, “To become a
truly global company, we would have to forge a unified team.
And it was clear what we had to do. There would be no more
in-fighting and competing against each other within the group.
We would always focus on the outside - focus on our customers
and on the marketplace.”
The new, overarching unit inherited its three component com-
panies’ more than 300 years of combined experience in the
industry. At the point of integration, Keppel FELS was in its 35th
year, while Keppel Singmarine was at its 115th, having started
as Singapore Slipway in 1887. As for Keppel Shipyard, it was in
its 143rd year - the company’s lineage can be traced back to the
construction of the first drydock in Singapore, which was located
in Keppel Harbour in 1859.
As the adage goes, the whole is far greater than the sum of
its parts. Harnessing the substantial synergies and collective
strengths yielded by the amalgamation, Keppel O&M has
been able to offer exceptional value propositions to custom-
ers worldwide.
In 2001, Keppel O&M’s three component companies had a
combined annual turnover and net profit of S$1.5 billion and
S$82 million respectively. In 2011, Keppel O&M’s turnover was
S$5.7 billion, while its net profit was S$1.1 billion. Its net order
book has also grown from S$1.9 billion in 2003 to S$9.4 billion
in 2011.
“To become a truly global company, we would have
to forge a unified team. And it was clear what we had
to do. There would be no-more fighting and competing
against each other within the group. We would always
focus on the outside - focus on our customers and on
the marketplace.”
Mr Choo Chiau Beng,
Former CEO of Keppel Corporation and
Former Chairman of Keppel O&M
In addition, working as a unified network enabled Keppel
O&M’s group of companies to better rationalise their costs
and resources. For instance, cost-savings were accrued by
consolidating the procurement of materials, equipment and
services. And by collaborating on projects demanding a
wide range of expertise, the companies could provide their
customers with more competitive solutions.
Mr Tong Chong Heong, CEO of Keppel O&M, shared, “The
bundling of our capabilities allowed us to maximise value for our
customers - they are offered an attractive matrix of cost-competi-
tive cum world-class services.”

While streamlining its businesses and strengthening its po-
sition in overseas markets, Keppel O&M also continues to
work closely with its customers to customise solutions to meet
specific needs.
Keppel O&M’s research and development, design and engineer-
ing efforts are spearheaded by Keppel Offshore & Marine Tech-
nology Centre (KOMtech), which was set up in 2007.
Being the technology division of Keppel O&M, KOMtech is re-
sponsible for research and development, product development
and commercialisation as well as process technology aimed at
improving productivity in Keppel O&M yards.
It augments the commercialisation work of the existing three
design and engineering units within Keppel O&M - Offshore
Technology Development (OTD), Deepwater Technology Group
(DTG) and Marine Technology development (MTD).
Set up in 1994, OTD focuses on designing jackups and their
critical systems. Through OTD’s efforts, Keppel O&M has a suite
of proprietary jackup designs that is widely accepted by the mar-
ket. The KFELS B Class design is the industry choice drilling solu-
tion for benign waters. Meanwhile, demand for Keppel O&M’s
harsh environmental jackup designs are gaining momentum.
Specialising in semisubmersible (semi) and other floating
structures, DTG was set up in 2002. Today, Keppel O&M is
the only shipyard group in the world with its own deepwa-
ter semi design capabilities and its own suite of proprietary
deepwater solutions.
As for MTD, it was established in 2002 and concentrates on
designing specialised offshore support vessel and tugboats.
Over the years, Keppel Shipyard has also grown its capabili-
ties in conversion work, expanding its range of competencies
to include detailed engineering and fabrication of topside
process modules for Floating Production Storage and Of-
floading (FPSO) units.
Natural Gas
Singapore’s government has promoted the use of natural gas
over the past several years. Singapore’s natural gas consump-
tion increased from 230 billion cubic feet (Bcf) in 2005 to 400
Bcf in 2015, according to BP Statistical Review of World Energy.
Over the same period, the share of natural gas in Singapore’s
electricity generation fuel mix increased significantly from 74%
to 95% as many gas-fired generators have replaced the use of
oil-fired generators.
The government intends to rely exclusively on liquefied natural
gas (LNG) imports by 2024, following the expiration of several
gas pipeline import contracts. Until Singapore commenced its
first LNG regasification terminal in 2013, Malaysia and Indo-
nesia supplied all of Singapore’s natural gas demand via pipe-
lines. Singapore’s sole LNG receiving terminal at Jurong Island
currently has a capacity of 292 Bcf, and is expected to expand
to at least 535 Bcf by 2018. The terminal has the potential for a
capacity of 730 Bcf with the use as many as seven tanks. LNG
imports are expected to diversify Singapore’s import sources.

” As the world’s largest bunkering hub, MPA will sup-
port future demand by promoting the development of
ship-to-ship LNG bunkering in the Port of Singapore.
This will provide the industry greater confidence in the
availability of LNG supply across key shipping routes.”
Mr Andrew Tan,
Chief Executive of MPA
Singapore aims to become a regional LNG trading hub and has
created an index to perform spot pricing for LNG. Singapore’s
only LNG regasification terminal has facilities with the ability to
transfer LNG from ocean liners to smaller vessels, which can ac-
cess more regional terminals. The terminal also has storage and
reloading capabilities, so LNG can be unloaded, temporarily
stored, and eventually delivered to its final destination. How-
ever, Singapore’s small infrastructure compared to that of other
Asian importing LNG countries could challenge its becoming a
major LNG trading hub.
Singapore is also looking to supply LNG bunker fuel to ves-
sels by early 2017. The Maritime and Port Authority (MPA)
of Singapore is funding the construction of six LNG-fueled
vessels. Also, the MPA is attempting to create national and
international standards and procedures for LNG.
MPA in December last year injected another S$12 million
to boost Liquefied Natural Gas (LNG) bunkering in the Port
of Singapore.
Half of this S$12 million has been set aside to co-fund the build-
ing of new LNG bunker vessels (LBVs) to facilitate the develop-
ment of ship-to-ship LNG bunkering in the Port of Singapore. The
remaining half will be used to top up MPA’s existing co-fund-
ing programme to support the building of LNG-fuelled vessels.
Launched in 2015, the initial funding for this programme has
been fully utilised to support Keppel SMIT Towage Pte Ltd, Maju
Maritime Pte Ltd, Harley Marine Asia Pte Ltd, Sinanju Tankers Pte
Ltd, and most recently, PSA Marine (Pte) Ltd.
About 95 per cent of Singapore’s electricity is gener-
ated using natural gas. Global expenditure on LNG
is projected to exceed US$280 million by 2021 while
global offshore wind market is expected to surge
past US$130 billion by 2023. Leading yard groups
KOM and SembMarine have already ventured into
the LNG segment, with KOM having delivered the
world’s first converted floating liquefaction vessel,
the Hilli Episeyo, last year.
Mr Andrew Tan, Chief Executive of MPA, said, “With the imple-
mentation of the International Maritime Organization’s (IMO)

0.5 per cent global sulphur cap on 1 January 2020, LNG is a
viable and tested solution for shipowners. As the world’s largest
bunkering hub, MPA will support future demand by promoting
the development of ship-to-ship LNG bunkering in the Port of
Singapore. This will provide the industry greater confidence in
the availability of LNG supply across key shipping routes.”
Applications for the new fund for the building of LBVs are
now open and MPA is inviting interested companies to tap
on it to co-fund up to S$3 million per LBV. To apply, com-
panies must be incorporated in Singapore, and the funded
vessels must be registered with the Singapore Registry of
Ships and licensed for bunkering activity in the Port of Sin-
gapore for a period of at least five years. Applicants must
also submit their business plan for the proposed LBV, in-
cluding working with MPA’s existing LNG bunker supply
licensees, where applicable. Applications will close on 31
March 2018.

Australia China
India Indonesia
Japan Malaysia
Myanmar South Korea
Thailand Vietnam
10 engaging plenaries
and panel discussions
multidisciplinary
technical sessions40+
300 + interactive technical
presentations and dialogues
5 timely
special sessions
educational and recognition
programmes5
10
focused
country sessions:
2018.otcasia.org | #otcasia | #derrickandsoo
participating organisations conference sessions
countries represented
Corporate Supporting Organisation
JILL CHIENG
General Manager
Sarawak Shell Bhd.
STEFAN VOS DE WAEL
General Manager, Shell
Energy Global Integration
Shell
STEVE BROWN
Futurist
Bald Futurist
ATSUSHI MIYAZAKI
Energy Business Division,
General Manager
Mitsubishi Corporation
LIANE SMITH
VP Digital Solutions
Wood
ARNOLD VOLKENBORN
Managing Director, APAC
Lead for Accenture Strategy
Energy
Accenture
WIJNAND MOONEN
VP Southeast Asia Business
Development
Sky Futures
AHMED IBRAHIM
VP APAC Region - Digital
GE Oil & Gas
VINIT VERMA
Manager, Data &
Analytics
ExxonMobil Information
Technology
SUDHIR PAI
Managing Director
Schlumberger Robotics
Services
Opening Ceremony Remarks by
Tan Sri Wan Zulkiflee Wan Ariffin
Advisory Committee Chairman, Offshore Technology Conference Asia
President & Group CEO, PETRONAS
ADIF ZULKIFLI
Senior Vice President,
Development & Production,
Upstream Business,
PETRONAS
SAMSUDIN MISKON
Vice President,
Group Procurement
PETRONAS
ZHIYONG ZHAO
Vice President, Asia
Hess Corporation
NIGEL LEES
Senior Vice President
Wood Plc.
DATUK MOHD ANUAR TAIB
Executive Vice President &
CEO, Upstream
PETRONAS
NEIL DUFFIN
President
ExxonMobil Production
Company (EMPC)
SHASHI SHANKER
Chairman and
Managing Director
ONGC
KHALED AL MOGHARBEL
President,
Eastern Hemisphere
Schlumberger
ANDY BROWN
Upstream Director
Royal Dutch Shell
DOUG PFERDEHIRT
CEO
TechnipFMC
DARREN HAAS
Platform Cloud
Engineering
GE
LIU QIAO
Executive Director and
Chief Technical Officer
3M Japan
VISAL LENG
President, Asia Pacific
Baker Hughes,
a GE company
ANUN CHONCHAWALIT
Senior Vice President
Corporate Strategy Division
PTTEP
SATYAM PRIYADARSHY
Technology Fellow and
Chief Data Scientist
Halliburton
YOUNG-MYUNG YANG
CTO
Korea Gas Corporation
NASER AL HAJRI
Operations, Southeast
Asia
Mubadala Petroleum
KEVIN ROBINSON
Vice President
Sapura Exploration &
Production
ADNAN ZAINAL ABIDIN
Vice President, LNG Assets,
Upstream
PETRONAS
AUSSIE B. GAUTAMA
Chairman of the Boards,
Maurel et Prom

Singapore Keen to Remain a
Relevant Player
In 2018, the oil and gas sector is ex-
pected to continue its recovery, as oil
majors adapt to the lower oil prices en-
vironment and are better positioned to
proceed with final investment decisions.
This positivity has been reinforced by a
recent announcement by the Singapore
government, by way of its industry trans-
formation roadmap (ITM), that Singapore
will stay relevant in the global marine
and offshore engineering (M&OE) indus-
try despite the recent headwinds from a
prolonged sectoral downturn.
The roadmap drawn up by a multi-agency
team led by the Economic Development
Board (EDB) targets some S$5.8 billion
in value-add and 1,500 jobs by 2025.
To achieve maximum synergies
in Singapore’s industry transfor-
mation over the next few years,
the Government announced the
S$4.5b Industry Transformation
Programme at Budget 2016. The
programme will integrate differ-
ent restructuring efforts, taking
a targeted and industry-focused
approach to address issues and
deepen partnerships between Gov-
ernment, firms, industries, trade as-
sociations and chambers.
Speaking at the launch of the ITM
M&OE, Minister for Trade and Industry
(Industry) S Iswaran noted that Singa-
pore is still drawing a significant eco-
nomic contribution from the industry
“The island-nation,
which does not possess
hydrocarbon reserves,
has forged a niche in
the last few decades in
the energy and marine
sectors. Having been
hit by the downturn
the last three years it
is a critical shot in the
arm for the industry
that the country’s
government considers
the marine and offshore
engineering industry
key for future economic
growth.
”
Country Feature

despite severe headwinds from a multi-
year downturn. The M&OE industry ac-
counted for S$3.6 billion, or 1 per cent
of Singapore’s gross domestic product
and employed more than 23,000 lo-
cals in 2016.
The industry has also grown from its
humble beginnings of just four domes-
tic marine firms to an eco-system an-
chored by homegrown international
names, notably Keppel Offshore &
Marine (KOM) and Sembcorp Marine,
and backed by over 1,000 small and
medium enterprises.
For sure, the industry has yet to emerge
completely from its worst downcycle in
history. A collapse of oil prices in 2014
triggered off drastic cutbacks in explora-
tion and production (E&P) activities that
have answered for the bulk of the indus-
try’s order book.
Mr Iswaran also acknowledged that the
past three years have been “difficult” for
the industry and that while recovery is
in sight with oil prices stabilising above
US$60 of late, oil companies are still
cautious in their E&P spend.
The industry has also grown from its
humble beginnings of just four domes-
tic marine firms to one anchored by
homegrown giants like Keppel Off-
shore & Marine and Sembcorp Ma-
rine and backed by over 1,000 small
and medium-sized enterprises.
At the same time, the industry has to
battle a liquidity crunch though the
government has stepped in to lend a
helping hand. Two schemes - Spring
Singapore’s Bridging Loan (BL) and
International Enterprise Singapore’s
enhanced Internationalisation Finance
Scheme (IFS) - that have catalysed near-
ly S$700 million in loans to more than
100 unique borrowers, have been ex-
tended until November 2018.
The issue at hand for the industry now is
how to thrive, and not just survive.
The president of the Association of Sin-
gapore Marine Industries (ASMI) Abu
Bakar Mohd Nor pointed out that in
this respect, the industry has proven
with the previous downcycles, that it
is capable of emerging stronger after
overcoming adversity.
Singapore’s M&OE industry has also de-
veloped core competencies that can be
applied in segments adjacent to the E&P
sector. Thus, the key to ensure the indus-
try continues to stay ahead of the pack
lies in diversification into new growth ar-
eas as traditional core businesses such
as rig-building can no longer anchor its
revenue stream.
The M&OE ITM has identified the lique-
fied natural gas (LNG) and offshore re-
newables as two new growth areas for
the industry.
Singapore Minister for Trade and Industry
(Industry) S Iswaran

Natural Gas on the Rise
About 95 per cent of Singapore’s electricity is generated using natural gas.
Before the completion of Singapore’s first liquefied natural gas (LNG) ter-
minal in 2013, the city’s only option was to import natural gas via pipelines
from Malaysia and Indonesia.
Singapore’s LNG industry has boomed since then, powering gas cookers
and water heaters in most households and fuelling industries including
refineries and petrochemicals.
Its LNG ambitions are massive, involving markets further afield. Sin-
gapore’s strategic location and reputation as a global trading hub for
other commodities place it at the forefront of becoming Asia’s LNG
trading hub.
The country’s move to expand its
LNG capacity to 11 million metric
tonnes a year (mt/year) by 2018
and give international players ac-
cess to storage and reload serv-
ices demonstrates its commitment
to become a regional facilitator
of LNG trading.
Unlike other Asian buyers, Sin-
gapore has taken bold steps to
develop a competitive and lib-
eralised gas market, has access
to international pipeline connec-
tions, and already allows third-
party access to its gas and LNG
infrastructure.
It has the support of its regulatory
authorities and first-mover advan-
tage relative to similar efforts by
Japan and Shanghai to build their
own LNG hubs.
Singapore is seizing a huge part of
the global LNG pie. It has reload-
ed six cargoes, of slightly less than
400,000 mt of LNG, from January
to November 2017, up from five
cargoes in 2016, according to S&P
Global Platts Analytics.
MPA CEO Andrew Tan, Pavilion Energy CEO Seah Moon Ming, Senior Minister of State Koh Poh
Koon and Pavilion Energy chairman Hassan Marican at the LNG bunkering launch ceremony.

Meanwhile, the global market
has reloaded just over 2 million
mt of LNG this year, down from
a peak of nearly 6 million mt in
2014, when the JKM averaged
US$13.86/MMBtu.
Storage and reload costs on
a US$/MMBtu basis are even
higher for medium and small-
size LNG cargoes, one of the
potential growth areas for Sin-
gapore.
The future of Singapore’s further
plans to develop the LNG sector,
including LNG bunkering plans and
leveraging LNG as a marine fuel –
an alternative to the currently used
marine diesel oil – are dependent
on several factors including the ar-
eas where the vessel operates, the
life of the ship, and most important-
ly, its relative price to other fuels.
To boost LNG bunkering in Sin-
gapore, the Maritime and Port
Authority of Singapore has an-
nounced in December 2017 that it
has pumped another S$12 million
into the industry. The funds will
be used to build new LNG bun-
ker vessels to allow ship-to-ship
LNG bunkering and to build LNG-
fuelled vessels.

There is room for optimism as the
country is well on track to becom-
ing a global reference for LNG
trading, and a key facilitator of
regional market liquidity, flexibility
and transparency.
Citing industry research, Mr Iswaran
said that global expenditure on LNG is
projected to exceed US$280 million by
2021 while global offshore wind market
is expected to surge past US$130 billion
by 2023.
He noted that leading yard groups KOM
and SembMarine have already ventured
into the LNG segment, with KOM having
delivered the world’s first converted float-
ing liquefaction vessel, the Hilli Episeyo,
last year.
There is also a pressing need for the
SMEs to build up their capabilities so
that they can benefit from these trends.
This is where government agencies like
IE Singapore can play a bigger role by
connecting companies with stakehold-
ers and resources, as well as supporting
business partnerships with companies in
overseas market.
KOM’s Inaugural Foray
Hilli Episeyo, constructed by Keppel in Singapore, is the world’s first
converted Floating Liquefaction (FLNG) vessel. It was named at a cer-
emony in Keppel Shipyard in early July 2017.
Hilli Episeyo was converted from the 1975-built Moss LNG carrier with
a storage capacity of 125,000 m3. It was designed for a liquefaction
capacity of about 2.4 million tonnes of LNG per annum.
FLNG Hilli Episeyo left the shipyard in Singapore in October 2017 and
arrived in Cameroon in late November where it was moved and con-
nected to an offshore gas field. The unit was then prepared and put in
operation offshore Kribi, Cameroon for Société Nationale des Hydro-
carbures (SNH) and Perenco Cameroon.

refrences
Business in Cameroon
CNA
IE Singapore
Pavilion Energy
Singapore Business Review
Singapore Ministry of Trade & Industry
TNP
The floating plant will be supplied in natural gas by the Sanaga and Ebomé
gas fields, offshore Kribi. The gas will be extracted from six wells located
on the Sanaga field, then it will be processed in Bipaga’s facilities, before
being conveyed to the floating unit for effective liquefaction.
The floating unit will help SNH and Perenco, partners of the association
Sanaga-Sud, produce 1.2 million tons of LNG per year for export, 30,000
tons of domestic gas for Cameroonian households and 5,000 barrels of
condensate every day.
For Singapore’s M&OE industry to compete effectively on the global stage however, it
is necessary to develop differentiating advantages.
Mr Iswaran urged the industry to embrace digitalisation and tap the promise data ana-
lytics, and artificial intelligence may deliver in terms of improving operational efficiency
and even generating new revenue streams.
One development relating to this global digital push is a trend towards additive manu-
facturing. Industry players have already teamed up to research the use of additive
manufacturing technology or 3D printing - KOM is collaborating with key strategic part-
ners such as Nanyang Technological University’s Singapore Centre for 3D Printing and
Lloyd’s Register. SembMarine has roped in the National Additive Manufacturing Inno-
vation Cluster, A*Star’s Singapore Institute of Manufacturing Technology and DNV GL.
To facilitate the incubation and development of intelligent and autonomous M&OE ca-
pabilities, the government has invested S$107 million to set up the Technology Centre
for Offshore and Marine Singapore (TCOMS). TCOMS will integrate pubic research
and industry expertise for the purpose of developing innovative concepts and infrastruc-
ture for M&OE operations.

Industry Outlook
Oil & Gas Investment to Revive
as Confidence Surges
The global oil and gas industry is ex-
pecting a boost to capital and opera-
tional expenditure (capex and opex) in
2018 after a sharp rebound in confi-
dence over the past year.
Two-thirds (66%) of industry lead-
ers surveyed for the DNV GL report
Confidence and Control: the outlook
for the oil and gas industry in 2018
plan to maintain or increase capex in
2018 (figure 1). It is the first rise in this
measure in three years. More than half
(58%) of respondents expect to main-
tain or increase opex in 2018, up from
41% last year.
“There seems to be
light at the end of the
tunnel as the industry
takes the first few
tentative steps out of
the oil price malaise, the
journey is far from over
but at least we are on
the road to recovery.
”

Confidence and Control is based on a survey of more than 800 senior oil and
gas professionals and in-depth interviews with 15 business leaders. Published in
January, it is DNV GL’s eighth annual benchmark study on industry sentiment,
confidence, and priorities.
Despite intentions to increase spending, the industry clearly expects to keep a
cap on costs, with measures to increase efficiency from existing assets emerging
as the top priority upstream, midstream, and downstream (figure 2). Half those
surveyed expect to increase cost efficiency in 2018 – more or less the same share
as in 2017. Moreover, nearly two-thirds (62%) think that these measures will be
permanent changes.
Higher Capex Expectations Are Global
All regions expect capex increases in 2018, according to the study, with invest-
ment most likely to increase in the oil refining and gas processing sectors, from
integrated companies and from exploration and production (E&P) companies.
Signs of an increasing appetite al-
ready started to emerge in 2017. In
the Middle East, for example, Saudi
Aramco recently approved plans to
spend around USD20 billion (bn)
building the world’s largest petrochem-
icals plant, the first in Saudi Arabia.
Exxon Mobil confirmed it will invest the
same amount over the next five years
in chemical and refining plants along
the US’s Gulf Coast. These develop-
ments highlight the attractiveness of
the downstream segment.
Some major offshore projects were
greenlighted last year or moving to-
wards eventual approval announce-
ments in early 2018. In the UK, Shell
is proceeding with redevelopment of its
Penguins field and Premier Oil is pro-
gressing toward approval of project
sanction for Tolmount. Exxon Mobil
said it will spend USD4.4bn on the ini-
tial phase of the Liza development off-
shore Guyana, within a block expected
to hold 2.0–2.5bn barrels of oil equiva-
lent. Meanwhile, Statoil announced the
largest offshore project approved in
2017: the USD5.89bn development of
the Johan Castberg field, which will be

the northernmost development on the
Norwegian Continental Shelf.
Greater Agility for Shorter
Cycles
Eirik Wærness, senior vice president
and chief economist, Statoil, explained
in an interview for DNV GL’s report
that after three years of significant cut-
backs in investment, the industry has
accumulated many potential projects,
most of which have lower break-even
points than before. “These projects
have been run through the mill sever-
al times in terms of cost reductions,”
he said. “Some of them will certainly
come to investment soon.”
The findings from DNV GL’s survey
highlight an increasing focus on new
projects being nimble; 60% of re-
spondents report that their organiza-
tion favours investments in more agile,
shorter-term projects – up from 52% a
year ago.
“New projects are likely to have a
quicker return on investment,” said Liv
Astri Hovem, CEO, DNV GL – Oil & Gas. “We see the majors driving a much
quicker turnaround on mega-projects compared with a few years ago.”
Standardization has also assisted some new projects to get off the ground, and
will remain a focus in 2018: 87% of respondents will increase (48%) or maintain
(39%) spending on standardizing operations in 2018.
Investment Revival Reflects Confidence Rebound
Reviving investment reflects the survey’s finding that after three tough years of cost
cutting, redundancies, and overhauling business models, the industry’s mood has
lifted markedly (figure 3).

Confidence levels have doubled from 32% in 2017 to 63% this
year, as measured by the share of respondents expressing confi-
dence in the industry’s prospects in 2018. This is faster than the
rise in oil prices whereas, previously, the rates of change in oil
prices and confidence were closely correlated. When it comes
to individual companies, two-thirds (66%) of respondents are
positive about prospects for their own organizations in 2018
compared with 43% a year previously.
Oil Prices and Cost Reductions Underpin Rising
Optimism
Two key drivers of restored confidence stand out, according
to Maria Moræus Hanssen, CEO and chairman of the man-
agement board, DEA Deutsche Erdoel AG. In an interview for
the DNV GL report, she said: “The first is oil and gas prices.
Short-term prices seem to drive a lot of sentiment about long-
er-term perspectives for the industry. Second, costs have come
down - both running costs and investment costs.”
“The big change in industry confidence is not because of a
belief that the oil price is going to rise to previous levels,”
said Graham Bennett, vice president, DNV GL - Oil & Gas.
“Instead, it is because industry participants now have their
cost levels under control and can make a reasonable mar-
gin, even at USD55 or USD65 oil.”

Cost Efficiency Remains A Priority
Rising expectations for oil and gas industry investment this year do not signal a return
to pre-2014 norms in cost-efficiency, however. Cost-containment lessons learned in the
downturn remain fresh and seemingly embedded for the longer term.
Nearly a third (31%) of respondents still view cost control as top priority – the same as
in 2017 – and half of those surveyed forecasted it would be greater in 2018. Nearly
a fifth (18%) expect operating costs to be the biggest barrier to growth this year – the
highest proportion recorded by the survey since 2014 (33%).
Nearly two-thirds (62%) believe cost-efficiency measures introduced since 2014
are now permanent. Like last year (63%), this supports the view that the industry
currently intends to sustain change aimed at protecting margin in a ‘new normal’
oil-price environment.
“It seems to be that we are perhaps beyond the bottom of this cycle and that we are
slowly heading up,” commented Thore E Kristiansen, chief operating officer E&P and ex-
ecutive director, Galp, for the DNV GL report. “But we are preparing for lower-for-longer
prices. We do not believe that we will go up towards the past highs [for oil prices], but
that we will stay at the levels around where we are currently for many years to come.”
A New Confidence for The Future of The Industry
Climate change, the energy transition, digitalization and technology innovation will
cause unprecedented disruption across the oil and gas industry between now and mid-
century. Companies are already reacting to the risks and opportunities this presents,
while balancing short-term priorities. This strategic challenge looks set to persist for
several years, but many leaders start 2018 ready to meet it with greater control over
their enterprises and a new confidence for the future of the industry.
This periodical thanks DNV GL for providing this
article, which was first published in DNV GL’s
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Bids & Pieces
SOUTHEAST ASIA
INDONESIA
Indonesia to Auction 43 Oil and Gas
Blocks by March
The Energy and Mineral Resources Min-
istry plans to offer 40 conventional and
three unconventional oil and gas blocks
through a tender in early March, includ-
ing 32 blocks that failed to attract inves-
tors in 2015-2017 auctions.
project news

The winners of the upcoming tender
will operate all of those blocks using
the new gross-split mechanism, which
requires investors to pay exploration
and production costs instead of rely-
ing on the government’s reimburse-
ment as seen under the former cost-
recovery scheme.
“We will offer all of those blocks in
early March,” the ministry’s secretary-
general Ego Syahrial told reporters
in January.
In December 2017, the ministry an-
nounced it had found bidders for
five of 15 oil and gas blocks offered
through that year’s auction.
Among the bidders are the United
Arab Emirates-based Mubadala Pe-
troleum, Spain’s Repsol Exploración
SA and a consortium consisting of the
United Kingdom-based Premier Oil Far
East, Mubadala Petroleum and Singa-
pore’s Kris Energy.
The ministry is optimistic that it will
also find many bidders for blocks of-
fered through the upcoming auction,
especially considering the increasing
crude prices.
MALAYSIA
ABB Completes the Tallest E-Houses
on A Floating LNG Facility
With a height of a five-story building, the
world’s tallest, single lift prefabricated
electrical structures – or e-houses – for off-
shore use are being installed on a float-
ing liquefied natural gas facility (FLNG).
The installation, for Petroliam Nasional
Berhad (Petronas), is also the world’s first
commercial floating LNG facility featur-
ing ABB e-houses which are used to
manage the electrical requirements.
This is Petronas’ second floating liquefied
natural gas (PFLNG 2) facility and will be
moored over the deep-water Rotan gas
field, located off the Malaysian coast.
In addition to its impressive size, the
project was completed with a record of
two million manhours with zero lost time
injury. A priority for safety has also been
imbedded into the future operations of
the facility by incorporating the latest
technologies adapted to corrosive off-
shore environments. The fully engineered
electrical system contained within the e-
house will include transformers, switch-
boards, motor-control centers and ABB’s
Process Power Manager that ensures reli-
able and stable electricity supply to the
FLNG facility.

The two e-houses are currently en-
route to Samsung Heavy Industries’
yard in Geoje, Korea, for installation
on the vessel.
“ABB’s long history of pioneering new
technologies and expertise in the auto-
mation field is a perfect match for the
floating LNG market,” says Per Erik Hol-
sten, ABB Managing Director for Oil,
Gas and Chemicals. “From concept
to realization, our engineered solution
is one of the optimized factors that al-
low oil and gas companies to exploit
fields that are traditionally deemed as
uneconomical. The PFLNG 2 project is
also a testimonial of our commitment
to stakeholders on safety, quality and
customer satisfaction, irrespective of
the magnitude of the project.”
PFLNG 2 will enable the liquefaction,
production and offloading of natural
gas in the Rotan field, and produce 1.5
million tonnes of LNG each year. The
non-propelled vessel will be moored
using an external turret.
SINGAPORE
KS Energy Gets US$3m Contract
Extension for Jack-Up Rig
Oilfield supply and services provider
KS Energy said in early January that its
KS Java Star 2 jack-up drilling rig has
been awarded a contract extension to
the value of US$3 million.
The original US$11.1 million contract,
announced in April last year, was won
by KS Drilling Operating Company, a
wholly-owned subsidiary of KS Energy’s
80 per cent subsidiary, KS Drilling.
The contract extension is not expected
to have any material effect on the
earnings per share and net tangible
assets per share of the company for
the financial year ending Dec 31, said
KS Energy.
THAILAND
Shell Sells Stake in Thailand’s Bongkot
Field to PTTEP
Shell Integrated Gas Thailand Pte Ltd
and Thai Energy Company Ltd, affiliates
of Royal Dutch Shell Plc, have agreed to
an asset sale of their 22.2222% interest
in the Bongkot field and adjoining acre-
age offshore Thailand to PTT Exploration
& Production Public Company Limited
(PTTEP) and PTTEP International Limited,
a wholly-owned subsidiary of PTTEP, for
a transaction value of US$750 million.
The transaction is expected to complete
in the second quarter of 2018, subject
to completion conditions as prescribed in
the agreement.
The agreement is for Shell’s stake
in Blocks 15, 16 and 17 and Block

G12/48. Following the completion of
this transaction, PTTEP’s stake in Bong-
kot will increase to 66.6667%, with the
remaining 33.3333% owned by Total.
PTTEP is the current operator of Bongkot.
Shell’s decision to divest remains driv-
en by the company’s strategy to sell
non-core assets in order to re-shape
Shell into a simpler, more resilient and
focused company. This sale takes Shell
a step closer to its divestment target of
US$30 billion.
This announcement has no impact
on Shell’s other business interests in
Thailand.
VIETNAM
Dril-Quip Awarded Contract for
Repsol’s Ca Rong Do Project
Dril-Quip, Inc. has announced that Dril-
Quip Asia Pacific Pte Ltd, its wholly-owned
subsidiary based in Singapore, has been
awarded a contract to supply top ten-
sioned riser (TTR) systems and related
services for the development of the Ca
Rong Do Project located offshore Vietnam
operated by Repsol with the participation
of Mubadala, PVEP and PetroVietnam.
Dril-Quip will provide a drilling TTR sys-
tem and multiple TTR systems for the pro-
duction, gas injection and water injection
wells. The systems will include tie back
connectors, tapered stress joints, riser
joints, riser connectors, keel joints, ten-
sioner joints, spool joints, flexible jump-
ers, surface wellheads, surface trees,
control umbilicals and tensioner systems.
Blake DeBerry, President and Chief
Executive Officer of Dril-Quip, stated,
“We are pleased to be awarded this
significant contract that would not be
possible without the hard work and
dedication of our employees at multi-
ple locations around the world. We
believe the enhanced product offer-
ings resulting from our January 2017
acquisition of OilPatch Technologies
(OPT) also played an important role in
our successful proposal, and we look
forward to further strengthening our
position as a leading provider of TTR
systems by successfully executing on
this project.”
.
THE ORIENT

CHINA
Fugro Returns to China for Gas
Hydrate Research Project in Further
GMGS Contract
Fugro has been awarded a contract by
Guangzhou Marine Geological Survey
(GMGS) for gas hydrate investigation
on the Northern Continental Slope of
the South China Sea. The contract is
valued at approximately US$ 40 mil-
lion and the project is expected to com-
mence in the second quarter of 2018.
This is the fifth gas hydrate field re-
search programme that Fugro will un-
dertake for GMGS and the two compa-
nies have worked together in this field
of research since 2007. Gas hydrates,
“frozen” gas-water solids resembling
ice, may be an important source of fu-
ture energy.
Operated from drilling vessel, Fugro
Voyager, the site characterisation pro-
gramme comprises logging while drill-
ing, pressure coring and geotechnical
sampling. The report and assessment
of gas hydrate reservoir volumes deliv-
ered by Fugro will be used by GMGS
to plan China’s second gas hydrate
marine production test scheduled for
2019.
“We are pleased to be re-appointed
to execute further exploration work in
the South China Sea and to continue
our long-standing relationship with
GMGS,” said Jerry Paisley, Fugro’s Di-
rector for Marine Site Characterisation
in the Asia Pacific Region. “Fugro has
been involved in many of the world’s
major gas hydrate field programmes to
date, providing technical advice, spe-
cialised tools, laboratory analyses and
vessels,” he explained.
SOUTH KOREA
SK Innovation announces Oil Discov-
ery in the South China Sea
SK Innovation (CEO Jun Kim, www.
SKinnovation.com) announced in Feb-
ruary 2018 that it made oil discovery
in the PRMB block 17/03 in the South
China Sea.
This marks SK Innovation’s first discov-
ery in the area since its decision to
push forward with offshore oil explo-
ration projects as an operator in the
South China Sea.
Since its signing of block 17/03 PSC
in February 2015, SK Innovation has
been focusing its technical capabilities
on geological and geophysical sur-

veys. In December 2017, it drilled its first exploration well into 2,014m depth and
found 34.8m net oil pay. The oil production of the well was tested up to 3,750
barrels per day.
SK Innovation plans to drill follow-up appraisal wells to assess reserves and com-
merciality of the project.
SK Innovation currently holds 80% working interest in the block, and 20% is held
by CNOOC, the Chinese stated-owned company specializing in offshore oil
and gas.
A spokesperson from SK Innovation said, “SK Innovation was the first private com-
pany in Korea to step into the upstream oil and gas business, and the company’s
focus on technical expertise ever since its beginning in 1983 led to this significant
milestone. Once the commerciality of the project in PRMB is secured, SK Innova-
tion will use it as a platform of growth into other areas in the South China Sea”
SK Innovation first started its oil and
gas business in 1983 by acquiring
interests in Karimun Block, Indonesia,
and has been focused mainly on con-
ventional oil and gas in areas such
as Peru, Vietnam and Middle East.
In 2014, it acquired two unconven-
tional oil and gas assets in the U.S.
which currently produce around 2,500
boepd. SK Innovation’s net reserves
amount to 530mmboe with daily pro-
duction at 55kboe from 13 blocks in 9
countries globally. In the South China
Sea, SK Innovation holds operatorship
(exploration) for two additional PSCs –
04/20 and 17/08.

SOUTH ASIA
INDIA
Essar Oilfields Wins Drilling Contract
from GAIL
Essar Oilfields Services India Ltd
(EOSIL) announced in February that it
has won a contract worth Rs 28 crore
from state-run gas utility GAIL India to
drill three firm and two optional wells
in the Cambay Basin in Gujarat.
Drilling for the project is expected to
commence in April-May 2018, Essar
said in a release here.
According to EOSIL, the company has
signed a series of onshore and off-
shore drilling contracts in the current
fiscal with clients like GAIL, Oil and
Natural Gas Corporation Ltd (ONGC),
Oil India LtdBSE 1.30 % and Mercator
Petroleum Ltd.
“With projects in the pipeline, the
company is expecting to grow its rev-
enue to Rs 400 crore in the financial
year 2019, which is 35 per cent
more than the current fiscal,” the
statement added.

signed a long-term service contract
with INPEX to support the maintenance
of the safety instrumented systems at
the Ichthys LNG Project in Australia.
HIMA is stepping up to provide a com-
prehensive safety service framework.
HIMA has been engaged in work on
the Ichthys LNG Project since 2009
and supplied the safety instrumented
system, fire and gas systems, emergen-
cy shutdown, high-integrity pressure
protection system, among others.
Moving into the operational stage,
HIMA is now continuing the relation-
ship with INPEX on the Ichthys LNG
Project, having secured a long-term
THE PACIFIC
AUSTRALIA
HIMA Supports Safe and Secure
Operations At INPEX-Operated
Ichthys LNG
As a leading independent provider
of smart safety solutions, HIMA has
service contract. HIMA will be respon-
sible for supporting INPEX in maintain-
ing the safety instrumented systems on
Ichthys LNG including the supply of
parts, and services to ensure that the
safety system is permanently operating
at its optimum.
Operated by INPEX, Japan’s largest
exploration and production company,
the Ichthys gas field represents the most
extensive discovery of hydrocarbon liq-
uids in Australia in more than 50 years.
The Ichthys LNG development includes
both offshore and onshore facilities con-
sisting of a floating production storage
and offloading vessel, central process-
ing facility and onshore LNG plant,
with an accompanying 890 kilometres
of subsea pipeline.
The INPEX-operated Ichthys LNG is
expected to produce up to 8.9 mil-
lion tons of LNG and 1.6 million tons
of LPG at peak annually, with up to
100,000 barrels of condensate per
day at peak.
Speaking on the contract win, Fried-
helm Best, Vice President of HIMA Asia

Pacific, said: “For HIMA, the signing
of the long-term service contract for
the safety system represents a key mile-
stone and major success for us. We
are extremely pleased to be able to
take this relationship with the INPEX-
operated Ichthys LNG Project into the
next operational stage.
“Now, we are facing a different set of
challenges in ensuring that the opera-
tion is running safely round the clock
without any interruption. HIMA also
contributes towards secure operations
in line with INPEX’s requirements.”
Touching on the collaboration
with HIMA, INPEX’s Graham Ison,
‎Operations Principal Instrument and
Control Engineer, said: “As we get
closer to the plant start up and into the
operational phase, we have signed a
long-term service contract with HIMA to
support the maintenance of the safety
instrumented systems across Ichthys
LNG. This contract is important to us as
we look forward to safe, reliable and
efficient operations.”

Supported by:The Dynamic Positioning Asia 2018, for the 8th
year running, will bring together DP
experts, new technologies, a supporting exhibition and networking opportunities for the
region’s DP sector.
Partnered with the Marine Technology Society Dynamic Positioning Committee, DP Asia
in 2018 will be a three-day event and will incorporate MTS DP Workshops planned and
executed by industry technical and operational experts from the MTS DP Committee. A full
day optional workshop will take place on Day 1 and the other workshops will be incorporated
into Day 2 and Day 3 of the conference.
Organized by:
workshop/Conference Session ThemeS
TECHNICAL COMMITTEE
Joey Fisher, Managing Director, M3 Marine Expertise; Conference Chairman
Suman Muddusetti, MTS DP Technical Committee / Chairman; MTS DP Sub-Committee on
Guidance and Standards
Satheesh Prabhakaran, DP Manager, Aqualis Offshore
Capt. Andrew Wood, DP Manager DNV GL
Priyadarshan Pandey, General Manager – Operations – POSH Group
PK Kumar, General Manager Electrical & Engineering, Greatship Global Offshore
Rob Achten, Fleet Technical Manager – Research & Systems, Swire Pacific Offshore
Captain Praveen Bajaj, Offshore Vetting and Marine Operations Lead (AP), ConocoPhillips
Andrew Lynch, Technical Instructor, Swire Pacific Offshore
Captain Gaurav Dadhwal, POSH OSV – Operations
The Committee invites papers for the conference sessions on the following themes.
• DP Professional Competencies
• DP Verification & Validation
• Thrusters / Unwanted Thrust /
Thruster Fail-Safe Conditions
• Reactivation of DP Vessels
• DP Capability Standards
• Technical Standards for Train-
ing of DP Engineers / ETOs
• New & Future DP Vessel
Technological Development
• Class Rules, Vessel Assurance
and Charterer Requirements
• Advances in Sensor and
Position Reference System
Technology
• AC and DC Electrical Power
• Systems & Protection
Schemes
The deadline for the submission of paper abstracts is 30 April 2018.
The Committee requests that the abstracts indicate the conference session theme.
Dynamic positioning technology is constantly evolving through innovations and improvements.
Rules and guidelines for all aspects of DP vessel design, operations and professional develop-
ment are under continuous development and there is high focus on safety and towards the
delivery of incident free DP operations.
The conference will be an excellent platform for the speakers to address an experienced audi-
ence of multi-disciplined DP experts and stakeholders.
SPONSOR & EXHIBITOR OPPORTUNITIES
A wide range of sponsorship opportunities are available. Sponsors will be recognized in con-
ference materials and at the event.
DP Asia provides a platform for companies to showcase their products and services, enhance
brand image, and to network with decision makers from the DP industry.
For more information on Sponsorship & Exhibition packages, please email to:
Ms. Mary at info@media-buz.com or call (65) 6222 3422 or visit www.petrominonline.com
CALL FOR PAPERSCALL FOR PAPERS

Industry Outlook
Scene & Heard
China Surpasses South Korea
As World’s Second-Largest LNG
Importer
China’s General Administration of Cus-
toms just confirmed what liquefied nat-
ural gas industry insiders have been
speculating for weeks: There’s a new
No. 2 in town.
China imported 38.1 million tonnes of
LNG in 2017, according to customs
data released in early January. That’s
more than the 37.6 million tonnes that
South Korea imported last year, ac-
cording to customs data that country
released last week.
In 2016, South Korea imported 33.5
million tonnes to China’s 26.1 million
tonnes, according to customs data.
Japan, the world’s largest importer,
had shipped in 72.3 million tonnes
through the end of November, accord-
ing to government data.
China’s surge stems from President
Xi Jinping’s efforts to clean the air in
smoggy cities by replacing coal-burn-
ing furnaces with cleaner natural gas.
The push resulted in winter gas short-
ages in parts of the country where in-
frastructure was not prepared to han-
dle the increased demand.

Additional LNG buying has also in-
flated spot prices, which have more
than doubled since June to US$11.40
per million British thermal units, ac-
cording to industry publication World
Gas Intelligence.
Gas consumption in China is expected
to continue its rise as the government
still has room to improve air quality,
Sanford C. Bernstein & Co. analysts
including Neil Beveridge said in a Jan
18 research note.
China could overtake Japan as the
world’s No. 1 LNG importer as soon
as 2025, according to Bloomberg
New Energy Finance forecasts.
Indonesia Sets Sights On
$17.04b Oil and Gas Investment
In 2018
The Energy and Mineral Resources
Ministry has said that the government
is aiming to achieve a US$17.04 bil-
lion investment target in the oil and
gas sector.
“[Investment] is returning to the level be-
tween 2014 and 2016,” Ego Syahrial,
the ministry’s oil and gas director gen-
eral, said in Jakarta in early January as
quoted by kompas.com. He added that
oil and gas investment reached $20.72
billion in 2014, $17.38 in 2015 and
$12.74 billion in 2016.
Ego said, however, that the sector re-
corded the lowest-ever investment in
2017 at only $10.18 billion, of which
$9.33 billion was in the upstream oil
and gas business and $845.58 million
in the downstream business.
Meanwhile, Upstream Oil and Gas
Regulatory Special Task Force (SKK Mi-
gas) head Amien Sunaryadi said the
government was attempting to boost
investment in a number of upstream oil
and gas projects in order to achieve
the target.
Among these projects are the Jam-
baran Tiung Biru project, which will
break ground this year, the capacity
expansion of the Jangkrik field in the
Makassar Strait, the Tangguh Train III
project in Papua’s Bintuni Bay, and the
preliminary front-end engineering de-
sign (pre-FEED) for the Masela block
in Maluku’s Arafuru Sea, which is ex-
pected to commence this month.
Meanwhile, Downstream Oil and Gas
Regulatory Agency (BPH Migas) head
Fanshurullah Asa said the govern-
ment would auction three gas pipeline
projects: the 687-kilometer Natuna-
West Kalimantan, the 1,800-kilometer
West Kalimantan-Central Kalimantan
and the 162-kilometer Central Kaliman-
tan-South Kalimantan pipeline projects.
Shell Sees Potential LNG
Supply Shortage as Global
Demand Surges
The global liquefied natural gas (LNG)
market has continued to defy expecta-
tions of many market observers, with
demand growing by 29 million tonnes
to 293 million tonnes in 2017, accord-
ing to Shell’s annual LNG Outlook.
Such strong growth in demand is con-
sistent with Shell’s first LNG Outlook,
published in 2017. Based on current
demand projections, Shell sees poten-
tial for a supply shortage developing in
mid-2020s, unless new LNG production
project commitments are made soon.

Japan remained the world’s largest
LNG importer in 2017, while China
moved into second place as Chinese
imports surged past South Korea’s. To-
tal demand for LNG in China reached
38 million tonnes, a result of contin-
ued economic growth and policies to
reduce local air pollution through coal-
to-gas switching.
“We are still seeing significant demand
from traditional importers in Asia and
Europe, but we are also seeing LNG
provide flexible, reliable and cleaner
energy supply for other countries
around the world,” said Maarten Wet-
selaar, Integrated Gas and New Ener-
gies Director at Shell. “In Asia alone,
demand rose by 17 million tonnes.
That’s nearly as much as Indonesia,
the world’s fifth-largest LNG exporter,
produced in 2017.”
LNG has played an increasing role in
the global energy system over the last
few decades. Since 2000, the number
of countries importing LNG has quad-
rupled and the number of countries
supplying it has almost doubled. LNG
trade increased from 100 million
tonnes in 2000 to nearly 300 million
tonnes in 2017. That’s enough gas to
generate power for around 575 mil-
lion homes.
LNG buyers continued to sign shorter
and smaller contracts. In 2017, the
number of LNG spot cargoes sold
reached 1,100 for the first time, equiv-
alent to three cargoes delivered every
day. This growth mostly came from new
supply from Australia and the USA.
The mismatch in requirements between
buyers and suppliers is growing. Most
suppliers still seek long-term LNG sales
to secure financing. But LNG buyers
increasingly want shorter, smaller and
more flexible contracts so they can bet-
ter compete in their own downstream
power and gas markets.
This mismatch needs to be resolved
to enable LNG project developers to
make final investment decisions that
are needed to ensure there is enough
future supply of this cleaner-burning
fuel for the world economy.
Marine Contracting Industry
Launches Personal Resilience
Awareness Programme
Leading members of the Internation-
al Marine Contractors Association
(IMCA) have come together to develop
the IMCA Resilience Awareness Pro-
gramme tailored specifically for the
men and women working in the marine
contracting industry.
They did this in the knowledge that one of
the key attributes of a successful organisa-
tion is its ability to cope and adjust to the
many challenging issues in the industry
today. The capability of an organisation
to do this effectively is largely dictated by
the resilience of its people.
Allen Leatt, IMCA CEO explains:
“Shell initiated the concept as a prag-
matic recognition of the potential impact
of the restructuring and uncertainty which
the oil and gas industry has been en-
during. Their programme encompassed
the broader industry, and with their full
support provided the framework for the
development of the IMCA programme

focused specifically on the marine con-
tracting sector, in which Subsea 7 took
the lead.
“The programme is designed to be used
by groups of employees, to help promote
discussion and share thoughts enabling
them to become more resilient and in do-
ing so help keep operations safe.
“The Resilience Awareness Programme is
a great example of how IMCA can step
in to promote and develop a project of
common interest to our membership.”
Six video modules and accompanying
guidance notes.
making safer decisions by teaching
how to keep things in perspective
• ‘Change is part of life’ – explor-
ing how to cope with change and
prevent change having a negative
impact on safety
• ‘Looking after yourself’ – how tak-
ing care of ourselves will help us
be safer by being more alert and
sharper
• ‘Taking decisive action’ – keeping
ourselves safe by reminding us to
always think things through before
acting
• ‘Summary and scenarios’ – recaps
on previous modules with some fur-
ther scenarios for discussion
Filming took place onboard vessels of
Subsea 7, Saipem, and Heerema Ma-
rine Contractors. The programme is
sponsored by IMCA’s board member
companies: Allseas, Fugro, Heerema
Marine Contractors, Saipem, Subsea
7, TechnipFMC and McDermott Inter-
national.
The full Programme can be found at
https://www.imca-int.com/publica-
tions/resilience/
The programme, comprising six video
modules and accompanying guidance
notes for facilitators and an introduction
for those embarking on the programme,
explains the main concepts of resilience
and proposes useful tips on how to de-
velop and improve this capability for use
at work and at home.
The six 10-minute videos, which are
downloadable from the IMCA website,
cover:
• ‘What is resilience’ – understand-
ing ways in which to develop resil-
ience to help to us stay safe
• ‘Keeping things in perspective’ –
Allen Leatt, IMCA CEO

TUBACEX Closes 2017 In A
Record-Breaking Year for Premium
Order Winning
TUBACEX announces its annual results
anticipating the end of the worst cri-
sis ever to hit the Oil&Gas sector. In a
background defined by a permanent
drop in volumes and prices remaining
under pressure, with particular impact
on results during the last three years, TU-
BACEX has had sales of €490.4 million,
a decrease of 0.7% compared to the
results obtained in 2016. These sales
were achieved in a record-breaking year
in terms of winning high technological
value orders, with a backlog in excess of
€700 million, whose impact will begin
to materialize in the first quarter of the
year, forecasting significantly improved
results from the start of the year.
This improvement will be visible in
2018 and 2019, coinciding with a
maximum acceleration momentum for
the Group industrial plans oriented to
plant specialization in Premium prod-
ucts in Austria and production increase
in India. In terms of market situation, the
Capex increase effect announced by
the oil companies will require a length
of time to be translated into a growth in
demand for the Group products.
TUBACEX CEO Jesus Esmorís be-
lieves the worst part of the crisis is
over. “We are turning the corner of
the worst crisis in history and look to
the future with optimism and peace of
mind in the knowledge that we have
done our homework in the last three
years” he concluded, in relation to the
progress made by the Company in the
field of design and manufacturing of
high technological value tubular solu-
tions, achieving record-breaking sales
figures in Premium products year af-
ter year. These results emphasize the
value of TUBACEX positioning in the
Premium segment, along with constant
efforts to increase efficiency and cost
control. “For the last three years we
have witnessed the worst crisis in the
oil sector history. The industry CAPEX
has dramatically shrunk leading to an
unprecedented drop in manufacturing
volumes and fierce price competition.
Despite the situation, we have been
able to overcome this crisis with rea-
sonable results”, he added.
Harris Pye Group Opens Korean
Office
Harris Pye, the global engineering
group, has opened a new office in
Busan in South Korea primarily to
keep pace with the demand by Ko-
rean shipowners and operators eager
to bring their LNG carriers to ship-
yards in Korea for dry docking and
inspection, repair or modification of
their boilers.
Newly appointed Harris Pye Country
Manager Jaecheol Lee explains: “Pre-
viously LNG carriers were dry-docking
in Singapore, but now owners prefer
to bring them to Korea. This has ena-
bled Harris Pye to set up a new of-
fice and offer repair and inspection
services using our skilled workforce
from our Singapore and Japan facili-
ties initially for all necessary work on
these marine boilers. In time we ex-
pect to extend our service to include
industrial boilers.

“We are also able to undertake boiler
construction, as well as offering all nec-
essary engineering for, and installation
of, ballast water treatment and scrub-
ber systems for a variety of vessels.
“Establishing an office here in Korea
means we can form the essential close
and productive working relationship
with our Korean clients.”
“We are delighted to have appointed
Jaecheol Lee to this new position,” ex-
plains Mark Prendergast, Harris Pye’s
CEO. “He majored in electrical/elec-
tronic engineering at university and
has worked for 38 years in the marine
field, primarily in sales and service for
a variety of equipment manufacturers
for new builds. With his hand on the
tiller we look forward to expanding
our Korean facilities in the months and
years ahead.”
Tap Oil Chooses Non-Executive
Director as New Chairman
Tap Oil Limited (Tap) is pleased to
advise that non-executive Director, Mr
Chris Newton has been appointed as
Chairman of the Company, effective
immediately.
Mr Chris Newton is a geology graduate
from the University of Durham, England
and also holds a Graduate Diploma in
Applied Finance and Investment from
the Securities Institute of Australia (SIA).
Chris has had a 39-year career in oil
and gas covering the spectrum of the in-
dustry - from exploration, development,
production and petroleum economics to
strategic planning, business develop-
ment and senior leadership.
Chris has spent more than 25 years in
senior resource industry roles in South
East Asia including as Managing Di-
rector of Fletcher Challenge in Brunei
and of Shell Deepwater Borneo, Presi-
dent of Santos’ Indonesian operations,
and CEO of Jakarta-listed oil and gas
company EMP.
In 2010 Chris co-founded Singapore
based Risco Energy and successfully
drove Risco’s operations and business
development functions.
Chris was an active Director of the In-
donesian Petroleum Association (IPA)
between 2003 to 2008, including serv-
ing as President from 2004 to 2007.
Chris is also a non-executive Director
of ASX listed Lion Energy Ltd and re-
mains the oil and gas advisor to the
Jakarta-based Castle Asia Group.
Jaecheol Lee, Harris Pye Country Manager for
South Korea

Propulsion Systems
Powering the Seas
Diesel-electric transmission, or diesel-
electric powertrain is used by a number
of vehicle and ship types for providing
locomotion.
A diesel-electric transmission system in-
cludes a diesel engine connected to an
electrical generator, creating electric-
ity that powers electric traction motors.
No clutch is required. Before diesel
engines came into widespread use, a
similar system, using a petrol (gaso-
line) engine and called petrol-electric
or gas-electric, was sometimes used.
Electrical propulsion system offers nu-
merous advantages for ships that are
subject to specific requirements. They
are rated as particularly economical,
environmentally friendly and reliable,
offer considerable comfort in terms of
operation and control, have optimal
maneuvering and positioning proper-
ties, low vibration and noise levels,
and additionally enable the best pos-
sible utilization of space owing to their
reduced noise levels.
Some modern diesel-electric ships,
including cruise ships and icebreak-
ers, use electric motors in pods called
azimuth thrusters underneath to allow
for 360° rotation, making the ships far
more maneuverable. An example of
this is the Harmony of the Seas, the
largest passenger ship as of 2016.
“Compared to direct
diesel drives, diesel
electric propulsion
systems are technically
and operationally
superior in virtually
all applications. This
superiority has been
a major reason for
the steadily growing
demand for diesel-
electric main drives in
marine engineering
applications.
”

Gas turbines are also used for electrical
power generation and some ships use
a combination: the Queen Mary 2 has
a set of diesel engines in the bottom of
the ship plus two gas turbines mounted
near the main funnel; all are used for
generating electrical power, including
those used to drive the propellers. This
provides a relatively simple way to use
the high-speed, low-torque output of a
turbine to drive a low-speed propeller,
without the need for excessive reduc-
tion gearing.
Layout of Diesel Electric Propulsion
The electrical propulsion arrangement
for a ship is often described as a die-
sel-electric or turbo-electric system. It is
characterized only by the type of prime
mover with no reference to the type of
electrical propulsion motor. When the
Siemens Schottel azimuth thrusters
Layout of diesel electric propulsion in ship

prime mover is a diesel engine, then
it is called Diesel-Electrical Propul-
sion. The most commonly used diesel
electrical propulsion systems are not a
new concept. In the past these systems
were usually diesel engine driven D.C
generators that supplied power to D.C
motors. Their applications were gener-
ally limited to vessels that required a
degree of low speed maneuvering.
Layout of diesel electric propulsion
in ship
Vessels such as ferries, harbor tugs, and
various other applications used diesel
electrical systems for features that were
not available in mechanical systems at
that time like speed control and maneu-
verability. To date, electrical propulsion
systems have been used mainly for spe-
cialized vessels rather than for cargo
ships in general. These include dredg-
ers, tugs, trawlers, lighthouse tenders,
cable ships, ice breakers, research
ships, floating cranes, and vessels for
the offshore industries. Electrical-drive
systems have made substantial progress
in recent years.
Types of Diesel Electric
Propulsion
The two systems dominating the market
today are Frequency controlled A.C
Motors and SCR controlled D.C Motors.
Frequency controlled A.C Motor drive
system were generally more cost effec-
tive below 500 H.P and SCR controlled
D.C motors systems at the higher end.
The offshore drilling industries favor
SCR controlled DC drives.
Modern SCR and frequency controlled
systems have efficiencies approaching
97% in power conversion. The selec-
tion of one over the other is an ap-
plication issue. The deep draft cruise
ship industry, due to the high hotel-like
power requirements, is adopting high-
power diesel electrical propulsion sys-
tems in most of its new builds.
Both technologies have a proven
record of efficiencies and reliability.
For a direct current propulsion mo-
tor, the electrical power may be from
one or more DC generators or may be
form an alternator and then delivered
through a rectifier as a DC supply. The
power for direct current motors is lim-
ited to about 8 MW, and so AC ma-
chines are used for high outputs unless
an effort is made to install DC motors
in tandem. The rectification scheme
can incorporate speed control and a
means of reversing.
Electric power generation and
propulsion is a solution opti-
mized for an environmentally
aware era, and which answers
shipyard and ship-owner’s needs
for fuel economy, higher flexibility
(both for installation and opera-
tion), better comfort on board,
increased availability and an in-
herent capacity to be configured
for fault tolerance and graceful
degradation.
Power for AC propulsion motor is sup-
plied obviously by an alternator; the
prime movers may be a diesel engine,
a gas turbine, or a boiler and steam
turbine installation.
The choice of diesel electrical system as
the power source for a propulsion sys-
tem of a vessel has nothing to do with
hydrodynamic efficiency. The propulsion
system of a vessel provides thrust to move
the vessel and is still chosen by the de-

signer based on merits for the vessel’s application. Conventional
propellers, controllable pitch propellers, azimuthing Z drives,
transverse tunnel thrusters, and low speed water jet systems can
be driven with equal effectiveness by a diesel-electrical system.
Diesel-electrical propulsion becomes viable when the in-
stalled KW for propulsion approaches or is exceeded by the
KW installed for other purposes. The convenience of electric
power distribution makes it possible to optimally locate the
primary power source, i.e. diesel generators, exclusive of
consideration as to whether it is for propulsion, thrusters,
or cargo handling purposes. A large variation in propul-
sion power requirements, such as long periods of low speed
operation or the necessity to shift power from main propul-
sion to thrusters for dynamic positioning purposes, can also
justify diesel electric systems.
Modern turbo-charged diesel engines are efficient over a rela-
tively narrow operating load and RPM range. They are not
suitable for long period of low speed, low load, low RPM,
high torque requirements for reversing large propellers. Mod-
ern generator systems with load sharing, auto-start, and load
shedding features make it possible to efficiently utilize the in-
stalled horsepower of a diesel electrical system.
Advantages of Diesel Electric Propulsion
Diesel electrical propulsion can overcome the following
design problems:
When propulsive or station-keeping power requirements are
a small or relatively small percentage of total power require-
ments, research vessels with special maneuvering require-
ments, and gaming vessels where speed is inconsequential
(such as a gaming vessel operating in a river).
When space and propulsion machinery limitations either
exclude the use of direct diesel or adversely affect the con-
struction costs resulting from using direct diesels:
1. Vessels with hull and struts too small to accommodate
diesel engines, access, ventilation, etc.
2. Vessels with potential trim problems, such as stern wheel-
ers, where machinery need to be located forward to
avoid trim problems.

3. Vessels that require, due to space
limitations, more than one machin-
ery space are subject to increased
construction cost due to duplica-
tion of increases in system such as:
engine cooling, space ventilation,
control facilities, exhaust, etc.
4. Vessels that have a large variation
in power consumption.
The fact that the propulsion power
may be supplied by an electric mo-
tor instead of a direct driven diesel
engine does not makes equipment
aboard the vessel any less familiar to
the operator.
The utilization of the diesel engines is
transferred from direct propulsion pow-
er to generate power. This provides
greater flexibility in the use of installed
KW, and in some instances, reduces
the number of diesel engines installed.
The ability to generate only the power
required to meet the needs of the duty
cycle of vessels utilizing multiple gen-
erator sets reduces fuel consumption
and maintenance cost. It also provides
redundancy in power capacity.
Salient Features of Diesel- Electric
Propulsion
1. Economic Reasons
Diesel electric propulsion is especially
economical for a number of reasons:
• Optimal utilization of fuel for
diesel engines to generate elec-
trical power, even in partial
load ranges.
• High efficiency across the entire
speed range.
• Reduced maintenance costs
through longer service intervals
based on the optimized operat-
ing times of diesel engines with
constant speed.
• Minimal standstill time for main-
tenance and service.
• Flexible and need-oriented use
of diesel generator sets in com-
bination power plant for drives
and onboard power systems.
2. Availability
Diesel electric propulsion systems dem-
onstrate high availability for reasons
that include:
• Modular design with small
probability of total loss of pro-
pulsion power.
• Sharply reduced number of
moving mechanical parts.
• Proven technologies based on
decades of operating experi-
ences.
• Redundant drives with one pro-
peller are also possible.
• Designs are also possible for
maximum redundancy require-
ments.
3. Environmental Compatibility
Diesel electrical propulsion systems
protect the environment because the
pollution emissions of diesel engines is
reduced by operating the engine at the
optimal speed and load ranges.
4. Operating Convenience
Diesel electrical propulsion is very con-
venient for the users, because of the
following:
• Excellent dynamic response
from zero to maximum propel-
ling speed.
• Short reversing time.
• Availability of maximum torque
across the entire speed range at

the propeller.
• Quite operation.
• Minimum mechanical vibrations.
5. Flexibility
• Flexible arrangement of components in the ship.
• Simplified mechanical requirements for the propeller
shaft.
• Reduced space requirements in the shaft system.
• Design and engineering of propeller is independent
of the drive.
• Flexibility in the choice of diesel engine speed
Technology Providers
The following 2 technology providers are examples of pro-
viders of electric propulsion systems, and are by no means
exhaustive.
GE
With more than 80 years experience and with a wide portfo-
lio of customized solutions, GE applies smarter engineering
to configure its power and propulsion solutions to suit the
needs of each individual customer.
GE systems and solutions are at work worldwide in a diverse
range of applications and ship types including warships,
naval support ships, offshore vessels of all types, tankers,
cruise ships, ice breakers, and more.
By listening to our customers we are able to apply GE en-
gineering expertise to what matters most on a case by case
basis, serving the diversity of their individual businesses.
GE’s class leading products and our customized engineer-
ing produces systems that emphasize one or more of the
following attributes:
• Improved machinery layout and space savings
• Increased flexibility
• Reduced noise and vibration
• Improved reliability leading to reduced maintenance
costs
• Reduced operating costs:
Fuel economy
Reduced maintenance
Reduced lost time/down time
• Configurable for maximum system availability/re-
dundancy
GE’s complete solutions portfolio includes systems for full
electric propulsion, for hybrid systems featuring electric
propulsion drives trains to augment mechanical propulsion
equipment, and for power take off/power take in. GE have
expertise at every stage of the power and propulsion proc-
ess; from gas turbines and diesel engines through to podded
propulsion units and everything in between.
For each application, system engineering can include technical
specifications, calculations and analysis, operational assess-
ments and requirements analysis, feasibility studies and evalu-

ation of alternative propulsion concepts,
availability, reliability and maintenance
studies, conceptual design and specifi-
cation of optimized propulsion systems,
shock, noise and vibration studies and
integration of the power and propulsion
and distribution systems components
with each other and other interfaces in
the vessels. As one of the early pioneers
in podded electric propulsion units GE
offer solutions that emphasize hydrody-
namic performance and incorporate the
latest variable speed drive and motor
technology. GE designs ensure reliabil-
ity, robustness, system compactness, and
low levels of noise and vibration, as well
as high manoeuvrability and overall sys-
tem efficiency.
Wärtsilä
Low Loss Concept (LLC)
LLC is an energy efficient and highly
redundant power distribution system
for electric propulsion applications.
The Low Loss Concept (LLC) is a power
distribution system comprising higher
efficiency, lower weight and volume,
and a high system redundancy. The
basic motive for the design is to re-
duce and eliminate the need for supply
(pulse) transformers to the frequency
converters, especially those supplying
electric propulsion.
LLC is available for both Low Voltage
and Medium Voltage applications. It
covers all power applications between

5MW and 45MW in both the Low Voltage and Medium Voltage versions. It is
effective also in vessels with operating profiles that require variable speeds, such
as OSVs.
The LLC power distribution system has been patented internationally by the
Wärtsilä Group.
Wärtsilä Low Loss Hybrid (LLH)
The introduction of Wärtsilä Low Loss Hybrid (LLH) and its integration with a con-
ventional diesel or dual-fuel engine generating sets, offers significant efficiency
improvement by running the engines on optimal load and absorbing many of the
load fluctuations through batteries. The system is designed and integrated to opti-
mise the overall operation of the vessel.
The power and energy capacity of the battery should be suitable to allow the engine
to run for most of the time on optimal loads. The system is designed and integrated to
optimise the overall operation of the vessel. A key element is hybrid control algorithms
for load sharing between units and efficient power and energy management.
refrences
brighthubengineering.com
GE
Wärtsilä
Wikipedia

Floating Production
Era of Automation
The oil and gas industry has long been
hailed as an industry of innovation and
technological advancements. Yet, when
it comes to automation on drilling rigs,
the industry has been slow to engage,
some might even say that there is palat-
able resistance.
Automated drilling is one of the oil indus-
try’s most important innovation targets.
This is partly because of the increasing
difficulty of finding new oil and gas re-
serves. The sources now being tapped,
such as shale gas and coal-bed methane,
require a very large number of wells.
With oil prices taking massive hits since
the last quarter of 2014 keeping costs
low and maintaining the bottomline is
more critical than ever. Automating the
drilling process would be an obvious way
to keep the costs under control, and also
gets around a problem which many sec-
tors of engineering are experiencing —
a shortage of skills. Constructing a well
system for unconventional gas requires
directional drilling, and finding people
who can do that is becoming difficult,
as experienced drillers reach retirement
age. Automated drilling, so the argument
goes, would be faster, more efficient, and
safer, as it reduces the number of workers
on site.
During the oil price malaise, the
industry looked to automation as
it sought to cut costs and reduce
overheads.
“Despite being one if
the driving industries
of cutting-edge
technology the oil
and gas industry still
seems resistant to rig
automation. The recent
depressed oil prices have
nudged the industry to
embrace the technology.
This article looks at
some of the benefits
and proponents of rig
automation.
”

Oil & Gas Investment Revival as Confidence Surges

Oil & Gas Investment Revival as Confidence Surges

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