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Day 1 • Tuesday • 22 March OTCASIA2016 K U A L A L U M P U R , M A L AY S I A T H E O F F I C I A L S H O W D A I LY O F T H E O F F S H O R E T E C H N O L O G Y C O N F E R E N C E A S I A Conference Returns To Illuminate Achievements Welcome to the Second OTC Asia Joel Parshall, Staff Writer M ore than 15,000 energy professionals representing 2,500 organizations and 60 countries are expected to gather today through Friday at the Kuala Lumpur Convention Centre for the Offshore Technology Conference (OTC) Asia. With the theme Excellence in Asia, the conference builds upon the highly successful inaugural OTC Asia held in Kuala Lumpur in 2014. The conference reflects Asia’s position as a global provider of exploration and production (E&P) technology, in which cultural and geographical diversity foster collaboration and innovation. OTC Asia will highlight the region’s achievements, aspirations, and the important technological developments needed for it to stay robust and resilient in the shifting global energy market. The event is attracting more than 450 thought leaders and industry experts, who will participate in a conference slate that includes two executive plenary sessions, 10 panel sessions, six special sessions, eight country sessions, and a comprehensive technical program. Showcasing Design Innovation In a special session, Petronas will showcase the innovation in design and leadership in fabrication and project management The Petronas Towers shine over Kuala Lumpur and the site of the second OTC Asia. The inaugural conference was held in 2014, when 25,100 industry professionals representing 88 countries gathered at the Kuala Lumpur Convention Centre. Many important issues facing the industry in this critical time of low oil prices and market volatility will receive keen attention, including cost reduction through the use of innovative techniques and practices and the management of asset value through the use of data-driven technologies to improve efficiency and profitability. involved in building the world’s first liquefied natural gas floating production, storage, and offloading vessel, which is soon to begin commercial production. OTC Asia also features a major exhibition of the latest technology, equipment, and service offerings by more than 300 companies and organizations, which significantly surpasses the number of exhibitors in 2014. This year’s exhibition covers 7000 m2 of display space. PLEASE SEE CONFERENCE ON PAGE 5 Petronas CEO: Market Makes Show More Meaningful Datuk Wan Zulkiflee Wan Ariffin is president and group chief executive officer of Petronas. Q: What do you expect from this year’s OTC Asia? A: The inaugural OTC Asia 2014 was a resounding success with over 25,000 attendees from 88 countries. Apart from the interest of participants and exhibitors, we were impressed by the quality of presentations, debates, and ideas discussed throughout the event. However, this year, OTC Asia is held in an unprecedented challenging time for the industry. I believe that making the most of our time together in the next 4 days would be more meaningful than on any other given situation. The success of the last conference had surpassed all earlier expectations. This bears testimony to the growing interest and prominence of Asia and perhaps even more specifically Malaysia in the global oil and gas industry. In the face of the current challenges, however, as well as looming changes to existing parameters resulting from the TPPA (TransPacific Partnership), the domestic oil and gas industry must prepare itself for increased competition. For Malaysian service providers, this means an urgent need to reassess their competitive edge and be open to consolidation across the industry to strengthen local companies for a new era in oil and gas, where scale and skills become prerequisites to even be in the running Datuk Wan Zulkiflee for business. Wan Ariffin Asia’s relevance is beyond about just contributing to demand in terms of population growth. The attraction of our vibrant region is really in our proven resilience, innovativeness, and adaptability to change. Hence, the theme for OTC Asia 2016 could not be more apt—Excellence in Asia. This simple yet powerful theme really sums up the prominent role the industry and the region plays in a growing energy market as well as in leading global economic growth well into the future. In light of the current economic climate, each participant has their own role to meet their own objective in being part of OTC Asia. These unique reasons brought each of us here, and, through the diverse and highly focused sessions, vibrant exhibition sphere, and networking events, I hope that the objectives of each one are met or even exceeded, whether it is to trigger an idea to take back, to look for business leads, or merely to represent their company in showcasing their brands, products, and services. It is my sincere hope that every person’s participation generates value to continue navigating through these difficult times. 2016.otcasia.org Corporate Supporting Organisation Principal Sponsors PLEASE SEE CEO ON PAGE 3 #OTCAsia 2 OTCASIA2016 FLOOR PLAN Exhibitor BoothHall A Hak Industrial Services SEA D630 6 A Horizon Publications/Mudrock Media E905 9 AB Sandvik Materials Technology B411 4 Abadi Oil And Gas Services P628 6 ABS D4114 Airborne Oil & Gas C912 9 Airpack Nederland B709 7 Aker Solutions E211 2 Akzonobel Protective Coating D705 7 Alert Disaster Control A302 3 Alfa-Meli Oilfield Services/ Downhole Products D621 6 American Institute of Chemical Engineers FoyerS101 American Petroleum Institute B704 7 American Society of Civil Engineers Foyer S203 American Society of Mechanical Engineers Foyer S102 Ampelmann Operations B904 9 Asian Offshore Services C603 6 Association of Singapore Marine Industries A501-055 Astoria Solutions A501–08 5 Australia National Pavilion (Mike Twiss & Associates) E901 9 Automation & Control Systems D610 6 Autronica Fire & Security C401–02 4 Baker Hughes C201 2 Bandak C401–124 Barakah Offshore Petroleum A619 6 Bardot Group A301 3 Beijing Valve General Factory E701–03 7 BMT E501–105 BMT Mercury Technology International C907 9 Boustead Penang Shipyard F701 7 Bright People Technologies E901 9 BSL Containers E903 9 Bumi Armada B511 5 Bureau Veritas B502 5 Busan Marine Equipment Association E501–01 5 Cameron C5115 Canada National Pavilion D511 5 Cangzhou Longtaidi Piping Technology E701–01 7 Casa Armada P629 6 Centre Side Express P627 6 Chengdu En-Shain Technology D901-03 9 China National Pavilion D901, E701, F70 9, 7 China Petroleum Pipeline Bureau C111 1 CIMC Raffles Offshore (Singapore) C701 7 ClassNK D7027 CM Labs Simulations G705 7 C-MAR Asia P702 7 Cortland D5055 D&P Process Services C631 6 Daido Steel A726 7 Damen Shipyards B909 9 DCN Diving B906 9 Deleum E2012 Desail Group P717 7 DHI P7057 Dialog Group D111 1 DNV GL C401–01 4 Dubai Business Events B701 7 Dupont Protection Technologies H701 7 Durasafe H7287 Duta Klasik D615 6 Dyna-Mac Engineering Services B503 5 E&P O&M Services A631 6 East One-Zero-One C610 6 ECA Group H732 7 Ecoprasinos Engineering P626 6 Ekahala Resources C604 6 Endswell C401–094 eProcess Technologies C631 6 Eureka Efektif P607 6 Evonik Specialty Chemicals (Shanghai) D709 7 First Marine Services P625 6 Five Aluminium Boat B705 7 FMC Wellhead Equipment C211 2 Frank’s International A721 7 Frigstad Engineering B710 7 Fugro G4114 Generon Asia C631 6 Geopro Technology H705 5 Global Marine Systems/ S. B. Submarine Systems G702 7 Global Nitrogen Services C631 6 Goforth Corporation B601 6 Gosan P7157 Government of Alberta D511 5 Guangzhou JST Seals Technology E701–047 Guizhou Gaofeng Petroleum Machinery D901–05 9 Gulf Marine Services D211 2 GustoMSC C9019 Hablem Oil & Gas A615 6 Halliburton Energy Services B201 2 Hebei Yaosheng Petroleum Special Pipe F706 7 Hempel (Singapore) F705 7 Hextar Oil & Gas P619 6 High Commission of Canada D511 5 HMSA B9039 Holland Lounge C903 9 Hoover Container Sea P710 7 Hoseung Ent E501–08 5 HSME H7307 Hunting Energy Services P703 7 Hwa Shin Bolt Industries E501–07 5 Hydratight D5055 iCEP—Santai Asia P621 6 IEV (Malaysia) C621 6 TECHNICAL SESSION ROOMS Level 4 PLENARY HALL ePOSTER STATIONS BANQUET HALL HALL 9 HALL 7 & 8 CONFERENCE HALL 3 PLENARY THEATRE Level 3 PLENARY HALL Level 1 HALL 3 HALL 2 HALL ALL LL 6 HALL 4 HALL 1 HALL 5 Ground Level Exhibitor BoothHall Independent Oil Tools A725 7 Inductotherm/Radyne G7087 Infield Systems B302 3 Inflatable Packers E906 9 Innovation Norway (Royal Norwegian Embassy, Commercial Section) C401 4 Innovative Oilfield Services D609 6 In-Situ Maintenance Services P601 6 Institute of Electrical and Electronics Engineers, Oceanic and Engineering Society Foyer S103 Institute of Materials, Malaysia Foyer S405 Institution of Chemical Engineers Foyer S404 Integrated Petroleum Services H721 7 International Conference & Exhibition Professionals FoyerS503 IRO-Dutch Suppliers Association B908 9 ITS Testing Services H725 7 James Fisher Subsea Excavation D708 7 Kärcher Cleaning Systems H711 7 Keppel Offshore & Marine C411 4 Khansforge P6166 KM Kinley Marketing A501-03 5 Kobid International A501–11 5 Kongsberg Oil & Gas Technologies C401–08 4 Korea National Pavilion Busan Marine Equipment Association E501 5 Korval E501–025 Krohne B5015 KTE E501–065 Kuala Lumpur Valve & Fitting P602 6 L&T-Valdel Engineering Limited P712 7 Langsat Oilfields Supply Center A101 1 Lankhorst Engineered Products F710 7 Lima Bintang Shipping & Forwarding D608 6 Lloyd’s Register Energy G901 9 M3 Marine Group A501-09 5 M3nergy F4014 Malaysia External Trade Development Corporation P6306 Malaysia Marine and Heavy Engineering Holdings D2012 Malaysia Oil & Gas Services Council Foyer S504 Malaysia Petroleum Resources Foyer S505 Malaysian Investment Development Authority D6276 MAN Diesel & Turbo B707 7 Maps & Globe Specialist P609 6 Marine Technology Society Foyer S201 Marshall Cavendish Business Information A501–045 Maser B6336 Master Flo Valve Asia D511 5 Masterseals Int. A501–12 5 MATRADE Pavilion C601–604, C607–610, D601–604, D607–610, D613–616, P625–629, P630 6 McDermott Asia Pacific A511 5 MECI H7317 MIT Innovation C609 6 MMC Oil & Gas Engineering C625 6 MTQ C5135 Muhibbah Engineering C613 6 Exhibitor BoothHall Myanmar Oil & Gas Services Society Foyer S403 National Oilwell Varco A211 2 National Petroleum Construction D631 6 Navingo B9059 Neptune Offshore Engineering Development E701–027 Netherlands Maritime Technology B911, C901 9 New Horizons Energy Services D613 6 New Tech Systems B712 7 NGLTech A6256 Nusapetro P6136 Ocean’s King Tech G707 7 Offshore Technology Conference Foyer S106 Oil States Industries G111 1 Oilfield Technical Inspection C601 6 OpenField Technology B702 7 Palfinger Asia Pacific A501–10 5 Panam Engineers P707 7 Pantech Group A411 4 PCM Group Asia Pacific G706 7 Peloton E.U.B.V. H722 7 Perisai Petroleum Teknologi A401 4 Petra Energy B607 6 PetroEDGE G7017 Petronas E101, B613 1, 6 Petroseal Engineering & EMSTEC A614 6 PH Industrie-Hydraulik H726 7 Prince Court Medical Centre Foyer S502 Prochem Pipeline Products E904 9 PTT Exploration and Production B111 1 Pyramid Oil & Gas Consulting A633 6 RB Solutions D607 6 Red Wing Shoe Company F501 5 RENHE Group D901–02 9 Reservoir Link D625 6 Ridderinkhof C909 9 Rigzone P9019 Romstar C6076 Rubberatkins G7117 Rustibus C401–044 Salaty Synergy P623 6 Salcon Petroleum Services C401-10 4 Sambo CM E501–06 5 Samyoung Fitting E501–09 5 Sandong Metal Industry E501–03 5 SapuraKencana Petroleum B101 1 Schlumberger G1011 Scomi C5015 SDD Master Solutions D614 6 Sembcorp Marine A501–01 5 Senko H7297 Sensitron Singapore A501–02 5 Serimatik (Harding) D501 5 ShanDong Yuelong Rubber-Plastic Technology D901–019 Shawcor B3013 Shelfoil Petroleum Equipment & ServicesE701–05 7 Shell Malaysia F101 1 Shenyang Fonda Pump B706 7 SHPI D7017 Singapore National Pavilion A501 5 Six Tee Engineering Groups A501–07 5 Exhibitor BoothHall SK Cryogenics P617 6 Sky-Futures A7227 Society of Exploration Geophysicists Foyer S104 Society of Mining, Metallurgy & Exploration Foyer S202 Society of Petroleum Engineers Foyer S105 Solar Alert B619 6 Soluforce B9029 Specialty Coating Systems F712 7 SPT Offshore C911 9 Star Information Systems D706 7 Stress Engineering Services F411 4 Superior Energy Services B504 5 Survival Systems International G501 5 T.D. Williamson Asia Pacific C401–03 4 Tai Crest Resources D616 6 Tamrotor Marine Compressors C401–11 4 TBC-Brinadd D7107 Technip A2012 TEHO International A501–13 5 Teledyne Oil & Gas F511 5 Telenor Maritime C401–06 4 Tianjin Pipe International Economic & Trading D901–04 9 Tianjin Puyou Mech. & Elec. Equipment F708 7 Tideway Offshore Solutions P713 7 TIEC International B708 7 Torque Solutions D628 6 Trelleborg Offshore E411 4 Trislot NV F709 7 Triyards Holdings G505 5 UMW Oil & Gas B401 4 Uzma Group B211 2 Valser Engineering & Services B625 6 Valvelink Technology P706 7 Valves & Piping Asia A501–06 5 Van Leusden B901 9 VBMS C908 9 Vetco Grey (GE Oil & Gas) F111 1 Viking SeaTech D505 5 Virtual Instrument & System Innovation C608 6 VTA Ball Valves D619 6 Wasco Energy Group A607 6 Weatherford D1011 Wellcem C401–054 Welspun E5115 Wenzhou Huahai Sealing D901–07 9 Weststar Aviation Services E401 4 Wild Well Control C711 7 Wilhelmsen Ship Management Holding C401–07 4 Winmag B9079 WL Pressure Control Equipment A724 7 Woosung Flowtec E501–05 5 Wuxi Kangning Electrical Apparatus for Explosive Atmospheres D901–089 Xi’an Brightway Energy Machinery Equipment F7117 Xinjiang Central Tanon Oil & Gas Technology D901–069 Yoowon Industries E501–04 5 Zhongya Valve D901–09 9 ZTT International P708 7 3 OTCASIA2016 TODAY’S HIGHLIGHTS Registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0730–1900 Opening Ceremony . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1400–1530 Plenary Theatre Exhibition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1500–1900 Exhibition Halls Coffee Break . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1530–1600 Exhibition Halls Panel Session 1: Excellence in Execution . . . . . . . . . . . . . . . . . . . . . . . . . 1600–1730 Plenary Theatre CEO, CONTINUED FROM PAGE 1 Q: How important is OTC Asia in the development of the industry in the region? A: OTC Asia plays an important role in providing a platform for continuous conversations, spurring collaborations and partnerships for mutual benefits in the industry. I believe that this major event will significantly highlight the potential of Asia’s oil and gas industry to potential investors apart from providing opportunities for them to showcase their technology and services. Effective conversations are necessary to achieve solutions in an increasingly complex business environment. The region needs to continue to foster its inherent strengths of being a formidable force in global oil and gas supply as well as demand. As a net importer, Asia, starting from ASEAN (Association of Southeast Asian Nations), can tap into the current structural industry shift to align key objectives, business frameworks, and incentives, which holds the potential to enhance our collaboration and trade. Q: How have you seen the oil and gas industry grow in Asia during your career, particularly with regard to Malaysia and Petronas? A: I am happy and encouraged with the positive trends I have seen thus far after spending almost 33 years of service in the company. Despite the current increasingly challenging environment, I still firmly believe OTCASIA2016 OTC Asia 2016 is the official show daily of the Offshore Technology Conference Asia. Inquiries? Contact awilson@spe.org. OTC Asia 2016 Editor Adam Wilson Director, Magazines and Web Content John Donnelly Senior Manager, Publishing Services Alex Asfar SHOW DAILY STAFF Chris Carpenter Stephanie Gillett David Grant Trent Jacobs Anjana Sankara Narayanan Gregg Parker Joel Parshall Steve Rassenfoss Mary Jane Touchstone Stephen Whitfield Published for the Offshore Technology Conference Asia (OTC Asia). The content and opinions expressed in this publication do not necessarily reflect the opinions of OTC Asia or its sponsoring organizations. Copyright 2016 Offshore Technology Conference Asia. that, over the long run, the fundamentals in Asia remain both solid and robust. Clearly, the potential for Asia to be the engine of growth in the oil and gas industry is very encouraging. Petronas ventured into petroleum products only 3 years after the company was formed, and, not long after, we ventured into international business in order to secure the nation’s energy needs in its growing years in the ’80s. In the same era, we started building one of the world’s largest LNG (liquefied natural gas) production facilities at a single location, which has been the model of LNG operation best practices in the region. Today, with technological marvels developing at a faster rate and leveraging decades of expertise and credentials built over the years, we have successfully completed the world’s first floating LNG facility, allowing us to unlock the nation’s gas reserves in remote and stranded fields. It has taken years and hard work of thousands of dedicated men and women to build the strong and integrated portfolio that Petronas has today. The oil and gas sector in Malaysia, under the stewardship of Petronas, has always played a proactive role in encouraging companies and service providers by providing a positive investment climate. At the cornerstone will be clarity in policies, based upon the merits of economic feasibility and governance. In the current challenging climate, however, local players must also take it upon themselves to reconcile the fact that the local industry can no longer support a disproportionate ratio of service companies. Through consolidation, the stronger players will emerge, bringing the collective competitiveness and quality of Malaysian companies to a new level. Speaking for the industry within Malaysia in particular, what we want is to elevate the local players to global standards, too. It is heartening to see the local oil and gas service providers independently venturing overseas after gaining experience and competition in domestic oil and gas. Q: What will your personal leadership emphasis be over the next year? A: To me, my personal leadership style is not to micromanage, and I am a strong advocate on the importance of empowerment whereby all my teams are empowered with a set of conditions that I’ve set for them, such as clear line of sight and solid justification for the decisions they’ve made. Undoubtedly there will be occasions where I will deep dive, and it’s important for me to know when to deep dive and when to step back. Having said that, consistent Special Session 1: SPS-SURF: Responding to the Cost Challenges of Low Oil Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1600–1730 Rooms 304/305 Technical Sessions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1600–1730 Rooms 401–410 Welcome Reception . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1700–1900 Exhibition Halls TOMORROW Executive Plenary Sessions Country Sessions: Japan, The Middle East Spotlight on New Techbnology Awards Presentation messaging is key to shaping the organization and providing clarity of direction. Q: How will the current market affect Petronas’ ventures? A: When the oil prices started to drop in mid-2014, Petronas immediately announced Capex (capital expenditure) and Opex (operating expenditure) cuts of 15 and 25%, respectively. However, as oil prices continued to decline and we began to see signs of a long drawn-out period of low oil prices, we decided to launch a deliberate, concerted effort to counter any further impact to the business. These include additional reduction in Capex and Opex of MYR 50 billion over the next 4 years. For this year alone, we target a Capex and Opex reduction of MYR 15 billion to 20 billion, with a primary focus on re-examining and optimizing all project costs, leveraging the current industrywide cost deflation. On the other hand, our Opex rationalization efforts include continuous improvements to operational efficiencies, reductions in general and administrative costs and contract renegotiations. For 2016, we are targeting a 10% cut in all our controllable Opex. Moving forward, we have also taken the decision to rephase the Petronas Floating LNG 2 project. This means that related upstream development projects will also be deferred to a later date. 4 OTCASIA2016 City Offers Variety of Dining, Sightseeing Options Stephen Whitfield, Staff Writer A ttendees of the 2016 Offshore Technology Conference (OTC) Asia will find no shortage of places to visit and food to eat during their time in Kuala Lumpur. The city is a bustling metropolis that mixes skyscrapers with tropical rainforests, street markets, colonial architecture, and religious shrines. Here are a few of the places to visit during the week of the conference. The towers are open Tuesday through Sunday. Visiting hours are from 0900 to 2100, except on Fridays when the towers are closed between 1300 and 1430. The Skybridge is currently closed for maintenance, so public tours will only include a visit to the observation deck on the 86th floor. For more information, call +603 2331 8080 or visit www.petronastwintowers.com.my. Popular Attractions Kuala Lumpur Tower. Opened in 1996, the Kuala Lumpur Tower is one of Malaysia’s most recognizable landmarks. Visible from almost anywhere in Kuala Lumpur, the tower’s viewing deck is approximately 100 m higher than that of the Petronas Towers. The tower features a theater; amphitheater; Petronas Towers. Standing at 88 stories and 451.9 m, the headquarters of the Malaysian national oil company, Petronas, is one of the tallest structures in the world. With a design inspired by Islamic motifs, the towers feature panoramic views of Kuala Lumpur’s cityscape. The Kuala Lumpur Tower stands 421 m above the city, with the Bukit Nanas Forest Reserve at its base. souvenir shops; and Atmosphere 360, a revolving restaurant. Nature enthusiasts can explore the Bukit Nanas Forest Reserve at the base of the tower. The oldest forest reserve in Malaysia, Bukit Nanas puts the country’s tropical climate on full display with natural flora and fauna, including a 100-year-old jelutong tree. The tower is open daily from 0900 to 2200. For more information, visit www.menarakl.com.my. Batu Caves. Located just north of Kuala Lumpur, the Batu Caves consist of three major caves and several smaller caves inside a limestone hill. The site houses several Hindu shrines, temples, statues, and paintings, and as such it is considered an important religious landmark. Monkeys are a commonplace sight around the caves, which are also a popular spot for rock climbing enthusiasts. Dining YOUR FIRST POINT OF CONTACT FOR INVESTMENTS IN THE OIL AND GAS SECTOR IN MALAYSIA Kuala Lumpur offers a wide array of culinary options, from Italian to Australian, fine dining to street carts. There is something for every personal taste, and, during the week of OTC Asia, attendees will have ample opportunity to sample whatever they fancy. Mama San. Inspired by the opulence of 1920s Shanghai, this restaurant in the Suria KLCC Shopping Centre has signature meat, seafood, poultry, and vegetarian dishes from Malaysia and several other countries in Southeast Asia. The menu includes such dishes as a sweet and sour crispy barramundi with ginger flower chili shallots and lime leaf, or a rogan josh lamb shank simmered in tomato sauce with cinnamon cadomom and fresh coriander. For more information visit www.mamasankualalumpur.com. Enak Restaurant. Enak is a well-known Malay restaurant in the Starhill Gallery Mall. For the past 15 years, the restaurant serves spicy Malaysian food from family recipes that have been passed down for generations. The menu features traditional dishes like botokbotok, sea mackerel wrapped in ground spices and nine types of herbal leaves, including papaya, lakes leaf, and cassava shoots. For more information, visit www.enakkl.com. Beijing Sydney MIDA Beijing Celestial Court at Sheraton Imperial. Located in the heart of downtown Kuala Lumpur, this restaurant offers halal Cantonese food that straddles the line between fusion and traditional. One of the restaurant’s signature dishes is a honey-spiced roasted rack of lamb with sweet beans and Mongolian sauce. Another dish offered is sautéed sea tiger prawns with minced garlic and shallots in homemade chili pepper sauce. The restaurant was voted “Best Chinese Restaurant” at the 2012 Time Out KL Food Awards. For more information, call +603 2717 9302 or visit www.celestialcourtrestaurant.com. 5 OTCASIA2016 MIDA Strives To Grow Investments in Malaysia Dato’ Azman Mahmud is the chief executive officer of the Malaysia Investment Development Authority (MIDA). Q: What is the main role of the Malaysian Investment Development Authority? “ A: MIDA is the government’s principal promotion agency under the Ministry of International Trade and Industry to oversee and drive investments into the manufacturing and services sectors in Malaysia. We are the first point of contact for investors seeking opportunities in Malaysia’s vibrant economy, world-class infrastructure, and business-friendly environment to set up their operations in Asia. Today, MIDA is Malaysia’s cutting-edge, dynamic, and pioneering force in opening pathways to new frontiers around the globe. Q: What are you expecting from sponsoring this event? A: Malaysia currently has more than 3,500 oil and gas businesses with exceptional expertise and skilled manpower to support our upstream and downstream sectors. This has created a vibrant and strong value-chain ecosystem of manufacturing and services sectors in the oil and gas industry, which continues to offer many more opportunities for local and international oil and gas companies. As such, we expect this event to provide a perfect platform for investors to gain first-hand information on the opportunities in Malaysia as a regional oil and gas hub for their businesses in Asia. Investors are encouraged to look at Malaysia from a wider regional perspective and consider Malaysia as a strategic business partner within the framework of ASEAN (Association of Southeast Asian Nations) and beyond. Q: Are you looking to attract investors at the conference? A: We welcome more international oil and gas companies to make strategic investments in Malaysia to complement home-grown companies. Our home-grown oil and gas companies have demonstrated their market leadership and strong capabilities in strategic focus segments such as marine, drilling, engineering, fabrication, offshore installation, and operation maintenance. With these capabilities, Malaysia is an ideal base for businesses to expand their oil and gas operations. CONFERENCE, CONTINUED FROM PAGE 1 Technology a Main Avenue “The application of technology will be a main avenue for the industry to weather the current low-price environment,” said program committee chairperson Muhammad Zamri Jusoh, vice president of Malaysia Petroleum Management at Petronas. “We are seeing that companies are more open than ever to sharing best practices and even resources to develop optimal solutions in today’s climate. “The OTC Asia 2016 conference program provides an unparalleled platform for energy professionals across the oil and gas sector—from top executives to technical professionals—to exchange Malaysia is committed to ensuring a sustainable and successful oil and gas industry through probusiness policies.” — Dato’ Azman Mahmud With the aim to welcome investors to explore these opportunities for themselves, MIDA is organizing a country session/panel discussion with the theme Navigating the New Oil and Gas Landscape. This session will provide investors with the latest insights and updates on the oil and gas industry in Malaysia. MIDA will also have scheduled business matching sessions held concurrently with the exhibition. Investors are encouraged to take advantage of these sessions to understand more about facilitation services and incentives available for them. Q: What is MIDA’s strategy to attract foreign direct investments in Malaysia specifically for this industry? A: Malaysia is committed to ensuring a sustainable and successful oil and gas industry through probusiness policies. Under the Economic Transformation Program, the government has established a three-pronged approach namely to sustain the production of oil and gas, encourage continued downstream activities, and grow oil and gas industry supporting services. In line with this, MIDA has adopted the ecosystem approach whereby we identify the gaps to be filled up. This includes building and strengthening local capabilities by intensifying local-international partnerships, which will lead to technology transfer and adoption of best practices as well as promoting and facilitating the development of local talents by internships, apprenticeship, and training programs to meet industry requirements. These would foster a conducive business environment that ideas and opinions on a variety of timely industry topics, to advance scientific and technical knowledge for offshore resources and environmental matters, and to develop solutions to face all the challenges involved in developing and providing affordable energy.” The opportunities available to energy professionals through participating in the conference fully reflect the OTC mission of promoting the exchange of ideas with collaboration and networking; presenting the newest technology trends in the offshore oil and gas industry; and focusing on the consistent achievement of safe, sustainable, and environmentally sensitive performance in all industry activity for the benefit of all. can transform Malaysia into a leading oil and gas hub in the region. Against the backdrop of the fluctuating oil prices, MIDA also encourages mergers and consolidations among local industry players. These consolidations serve to make the industry more efficient and stronger to remain competitive. Q: How is MIDA working to establish Malaysia as a regional oil and gas hub? A: Being located in the center of one of the fastest growing energy demands in Asia, Malaysia has the right strategic value propositions to become the regional oil and gas hub. Its good ecosystem with prominent oil and gas companies working throughout Asia and strong foundation in the area of maintenance, oilfield development, monitoring, inspection, and testing would provide investors with huge opportunities for investments. In the race to strengthen Malaysia’s position as Asia’s oil and gas hub, MIDA intensifies its promotional efforts to attract investors to leverage Malaysia’s abundant resources, excellent infrastructure, highly skilled talent pool, supportive government policies, as well as strong and developed oil and gas ecosystem. MIDA collaborates with related ministries and agencies such as EPU (Economic Planning Unit), Royal Malaysian Customs, Petronas, MPRC (Malaysia Petroleum Resources Corporation), and state governments to provide the necessary infrastructure to support and facilitate investments in the industry. Starting from 2013, MIDA has established a new Oil and Gas Division to focus more on the oil and gas sector. The division looks into every possible aspect of the industry, including challenges, technology gaps, and the government’s role in growing the industry. WHEN IT COMES TO A HAZARDOUS AREA WE MAKE IT SAFE! WEG offers a wide variety of products and solutions for the Oil & Gas Industry LV Motors Full range of hazardous and safe area NEMA and IEC high effciency motors g Synchronous Generators g Over 1,000 turbogenerators delivered g Alternators for diesel / gas engines MV Motors g State-of-the-art induction and synchronous motors with inrush currents as low as 300% of rated current LV and MV Drives g Variable Frequency Drives up to 12,000 kW g Soft-starters up to 3,300 kW Transformers Power transformers up to 345 MVA g Dry transformers up to 20,000 kVA g WEG Global Oil & Gas - No. 16, Jalan Utarid U5/17 - Mah Sing Industrial Park | 40150 Shah Alam Selangor Darul Ehsan - Malaysia | Phone: +60 3 78591626 | www.weg.net 6 OTCASIA2016 Special Sessions Address Challenges, Solutions Joel Parshall, Staff Writer T he collapse of crude prices has hit the oil industry with a hard truth: There are challenges beyond all previous expectations that must be met if existing operations and new major projects are to remain economically viable. The appreciation of these challenges, and the need for solutions, served as a backbone for the conference Program Committee as it crafted an exceptional slate of panel and special sessions for the Offshore Technology Conference (OTC) Asia 2016. “These sessions are designed to be highly relevant to the industry in the current climate, as it deals with the impact of low prices,” said Muhammad Zamri Jusoh, vice president of Malaysia Petroleum Management at Petronas and chairperson of this year’s program committee. “Taken together, the sessions provide a holistic view of the challenges and opportunities facing the industry and what it can achieve by getting things right.” The program presents an A-to-Z look at the challenges facing industry operations from bringing new projects on-stream all the way through to decommissioning projects that have reached their economic limit. The panel and special sessions begin this afternoon and run through Friday. Some of the many topics to be examined are the execution risk for managing large projects, with a focus on combatting cost and schedule overruns, cost reduction through innovation, regional synergies that can benefit Asian activities, knowledge transfer and human resources strategies to equip the next-generation workforce, high CO2 fields, and automated operations. Tuesday 1600–1730 Panel Session 1: Excellence in Execution Special Session 1: Subsea Production Systems (SPS)/Subsea Umbilicals, Risers, and Flowlines (SURF): Responding to the Cost Challenges of Low Oil Price Wednesday 1400–1530 Panel Session 2: Cost Reduction Through Innovation Special Session 2: Experimental Facilities in South Korea 1600–1730 Panel Session 3: Workforce Diversity Special Session 3: Oil and Gas Innovations— The Netherlands 1400–1530 Panel Session 6: Next Generation Workforce—Knowledge Transfer and Human Resources (HR) Strategies Special Session 5: Petronas Floating Liquefied Natural Gas (FLNG) SATU: The Industry Game Changer 1600–1730 Panel Session 7: Environment for Oil and Gas Development—High CO2 Fields and Carbon Capture and Storage Special Session 6: Petronas Refinery and Petrochemical Integrated Development (RAPID) Project Thursday 0900–1030 Panel Session 4: Big Data Analytics Friday 0900–1030 Panel Session 8: Floating Liquefied Natural Gas (FLNG) 1100–1230 Panel Session 5: Oil Price Volatility and Implications to Industry Special Session 4: State of the Art in Offshore Renewable Energy 1100–1230 Panel Session 9: Automated Offshore Operations 1430–1600 Panel Session 10: Decommissioning—Case Studies and Lessons Learnt Technical Program Draws on Global Expertise Joel Parshall, Staff Writer T he exchange of knowledge among oil and gas professionals on resources, operations, techniques, technologies, safety, and the environment is never more valuable than when it takes place at the technical level. The 2016 Offshore Technology Conference (OTC) Asia is presenting 58 multidisciplinary technical sessions beginning this afternoon and running through Friday. The technical program, consisting of 226 papers to be presented in the sessions and a further 285 MEET THE MEDIA OWN YOUR SPACE Tuesday 1600–1730 Autonomous Vehicles for Offshore Exploration Improved Oil Recovery (IOR)/Enhanced Oil Recovery (EOR) I Riser Systems Materials, Corrosion, and Inspection I Safety and Environment Challenges Completions: Operations and Case Studies MAKE YOUR MESSAGE MATTER When it comes to message delivery be ready to: E n g a g e For a media interview or for any public presentation connect with E Treanor Media International communications training expert Eithne Treanor delivers exceptional results V i s i t w w w. e t r e a n o r. c o m or connect on +97150581 1949 papers to be presented as ePosters, reflects insights, expertise, findings, and new ideas from around the world. As evidence of the growing interest in OTC Asia, the conference received 939 abstracts from 274 organizations across 44 countries for consideration to be included in the technical program. The number of abstracts received was a 13% increase over the inaugural conference in 2014. “We had global-scale participation in the assembly and formation of the technical program and have a global audience to take and work with the learnings,” said Muhammad Zamri Jusoh, Program Committee chairperson and vice president of Malaysia petroleum management at Petronas. “This kind of participation provides the best possible basis for the Asian industry to continue to build its technical stature, chart a bold future, and make ever greater contributions to the global industry.” Inform Educate Inspire Wednesday 1400–1530 Decommissioning and Well Abandonment Improved Oil Recovery (IOR)/Enhanced Oil Recovery (EOR) II Fractured Reservoirs Materials, Corrosion, and Inspection II Installation/Construction/Pipelay and Operations I Integrated Operations 1600–1730 Floating Liquefied Natural Gas (FLNG) Reservoir Modeling Technology Station Keeping in Deepwater: Mooring vs. Dynamic Positioning Flow Assurance I Installation/Construction/Pipelay and Operations II Marginal Fields I Thursday 0900–1030 Deepwater Design and Development I High Pressure/High Temperature I Stimulation and Fracturing Flow Assurance II Geotechnical—Piles and Anchors Marginal Fields II 1100–1230 Energy-Efficient Green Vessels Drilling Bits and Tubular Technology Project Management and Economics Subsea Production and Processing Systems Geotechnical—Jackups and Others Reservoir Surveillance and Facilities Integration Technology 1400–1530 Deepwater Design and Development II Central Luconia—Continued Growth Asset Integrity I Offshore Pipelines/Umbilicals I Geohazards Sand Management I 1600–1730 Floaters Downhole Bottomhole Assembly (BHA) Technology Asset Integrity II Offshore Pipelines/Umbilicals II Geoscience I Sand Management II Friday 0900–1030 Metocean Hydrodynamics I Deepwater Production and Reservoir Management Fluids and Cementing Flexible Pipelines Geoscience II Completions: New Material and Solutions 1100–1230 Metocean Hydrodynamics II Process Safety and Barriers Integrity Managed Pressure Drilling Technology High Pressure/High Temperature II Geophysics Completions: Design and Improvements 1430–1600 Sensors and Measurements Unconventional Resources Wellbore Survey and Well Planning Topside Construction 7 OTCASIA2016 Program Examines Industry Around the World Adam Wilson, Show Daily Editor R ounding out the focus of the 2016 Offshore Technology Conference (OTC) Asia on the challenges and opportunities of the Asian industry will be a series of seven country sessions. Beginning Wednesday afternoon and running through the remainder of the conference, 90-minute sessions will be held on Japan, the Middle East (UAE, Saudi Arabia, and Kuwait), Malaysia, Indonesia, Myanmar, Australia, and South Korea. The exchange of knowledge and insights that OTC Asia promotes as its mission takes on a unique aspect when presented in the context of the individual countries that comprise the global oil and gas network. The planned sessions build on the success of the country sessions program at the inaugural OTC Asia in 2014. “Some areas of interest will be Japan’s strategy of offshore development, including CO2 enhanced oil recovery, carbon capture and sequestration activities, and the country’s pioneering efforts in floating liquefied natural gas technology,” said Muhammad Zamri Jusoh, vice president of Malaysia petroleum management at Petronas and Program Committee chairperson for OTC Asia 2016. The first session, dealing with the state of the industry in Japan, will be from 1400 to 1530 in the Banquet Hall on Level 3 of the Kuala Lumpur Convention Centre (KLCC). Moderators Hiroshi Okabe of Japan Oil, Gas, and Metals and Katsunori Fujiwara of JX Nippon Oil and Gas Exploration will lead five speakers—Kenji Akiyoshi and Yoshihiro Nakatsuka of Japan, Oil, Gas, and Metals; Hironori Wasada of JX Nippon Oil and Gas Exploration; Boyd Howell of MODEC; and Hiroyuki Ishizaki of JGC Corporation—in discussions about technical challenges that the industry in Japan is tackling. At 1600 on Wednesday, a country session focused on the Middle East will be held in the Banquet Hall on Level 3 of the KLCC. Moderators Chen Tien Koh of Market Linker GCC and Remee Yaakub of the Malaysia External Trade Development Corporation will guide discussion revolving around doing business in UAE, Saudi Arabia, and Kuwait. Topics of discussion will include investment opportunities, guidelines and incentives, growth outlook, challenges, recent economic developments, and ongoing and future major projects in the counties. Three country sessions are planned for Thursday—Malaysia, Indonesia, and Myanmar. The Malaysia session, with the theme of Navigating the New Oil and Gas Landscape, will be from 1100 to 1230 in the Level 3 Banquet Hall. Moderator Datuk Azman Mahmud with the Malaysian Investment Development Authority will lead speakers Adif Zulkifli of Petronas, Maen Razouqi of Schlumberger, Douglas Moody II of FMC Technologies, and Craig McMahon of Wood Mackenzie in a discussion about Malaysia’s plans to be the Asia Pacific hub for oil and gas. At 1400 in Rooms 304 and 305, moderator Charles Knobloch of Arnold, Knobloch & Saunders will drive discussion about Indonesia and its efforts to leverage deepwater resources to provide broad sustainable development and economic growth. Speakers at the Indonesia session will be I Gusti Nyoman Wiratmaja of Indonesia’s Ministry of Energy and Mineral Resources and Slamet Riadhy of Pertamina International. Thursday’s country sessions will end with a session on Myanmar at 1600 also in Rooms 304 and 305. Moderators Walter MacKinlay of Shell and Pui Thai Chong of Petronas will lead speakers Hlaing Myint of Schlumberger, and Chris Rainsford of Baker Hughes, and Roelof Janssen of Shell in a discussion about challenges and opportunities of exploration drilling in Myanmar. At 0900 on Friday morning, Australia will be in the spotlight as the day’s first country session looks at the country’s complex liquefied natural gas (LNG) efforts. Australia is the only country with projects in construction that use three LNG production models—conventional offshore gas with onshore LNG production, floating LNG production, and coal seam gasbased LNG production. Moderators Stuart Smith of NOPSEMA and Michael Utsler of Woodside Energy will lead speakers Ken Fitzpatrick of the Australian Government Oil, Gas, and Energy Resources Growth Centre; Andrew Barrett of Geoscience Australia; and Kym Bills of the Western Australian Energy Research Alliance. The session will be held in Conference Hall 3 on Level 3 of the KLCC. The country sessions will wrap up at 1100 on Friday with a session revolving around South Korea. Moderator Yonghwan Kim of Seoul National University will lead speakers HongGun Sung of the Korea Research Institute of Ships and Ocean Engineering, Yoo-Seung Sim of Hyundai Heavy Industries, Young-Soon Yang of Seoul National University, and Joongnam Lee of Samsung Heavy Industries. The session will introduce South Korean activities with regard to offshore engineering in three aspects—industrial technology development, governmental research and development strategy, and new infrastructure. 8 OTCASIA2016 OTCASIA2016 9 10 OTCASIA2016 Awards Put Spotlight on Five New Technologies Adam Wilson, Show Daily Editor T echnological advancement is crucial to ensure offshore exploration is optimized. Regional industry players are still announcing new offshore discoveries and inking new drilling contracts to manage production and assets effectively. The Offshore Technology Conference (OTC) Asia has announced the five technologies that will receive the prestigious Spotlight on New Technology Award. The awards will be presented on Wednesday. New at OTC Asia, the Spotlight on New Technology Awards—an exclusive program for OTC Asia exhibitors—recognize the latest and most advanced hardware and software technologies that are propelling the industry into the future. The program is a hallmark of OTC events worldwide, with only 20 Spotlight Awards presented each year. In support and recognition of innovative technologies being developed by small businesses, OTC also features a Spotlight on New Technology Small Business Award. “Our Spotlight Award winners embrace OTC’s mission to advance technical knowledge of offshore developments and environment-friendly innovations,” said Arnis Judzis, OTC Asia Oversight Committee chairman and head of development and innovation at the Energy and Geoscience Institute of the University of Utah. The OTC Asia Spotlight winners for 2016 are • Airborne Oil and Gas for its Thermoplastic Composite Pipe • Frigstad Engineering for the Frigstad D90 • Halliburton for its CoreVault System • MIT Technologies for the Intelligent Circulation While Drilling (iCWD) tool • Weatherford for its Renaissance Systems MIT Technologies is also the recipient of the Small Business Award. “I congratulate this year’s Spotlight Award recipients for helping the industry improve performance and increase productivity in an ever-more-challenging oil-price environment. Cutting-edge technologies like these are always a highlight of OTC events, as they demonstrate the ingenuity and forward thinking that is advancing the industry,” said Joe Fowler, OTC Board of Directors chairman and cofounder of Stress Engineering Services. Thermoplastic Composite Pipe by Airborne Oil and Gas Thermoplastic Composite Pipe (TCP) is a fully bonded fiber-reinforced pipe. Robust, lightweight, spoolable, and corrosion-free, the pipe—TCP downline, TCP flowline, and TCP jumpers—is available in sizes from 1.5 to 7 in. inner diameter. The pipe uses a one-material design concept, in which the internal liner, the composite layers, and the outer coating are all of the same polymer thermoplastic material. The world’s most focused and comprehensive Arctic event. ON RATI T S I REG IN S N E OP St. John’s, Newfoundland and Labrador 24-26 October 2016 St. John’s Convention Centre ArcticTechnologyConference.org MAY The pipe is made with an in-situ consolidation manufacturing process that melt-fuses all layers together to form a strong and stiff solid wall. This creates a pipe that is collapse resistant, spoolable, lightweight, and corrosion resistant. The combination of the solid wall, flexibility, and not being affected by corrosion makes TCP very attractive for production flowline applications. Petronas supported Airborne in the qualification of its products and will install TCP to replace existing corroded steel pipelines. Petronas recently awarded Airborne Oil and Gas with the first contract for the supply of flexible flowline. The flowline has an internal diameter of 6 in. and a pressure rating of 100 bar. TCP Flowline resolves pipeline-corrosion issues and mitigates the risk of pipeline leakage. The primary interest for Petronas to have qualified the nonmetallic TCP and replace steel flowlines with TCP is to eliminate microbiologically induced corrosion. Furthermore, the lower as-installed cost of TCP compared with conventional steel or unbounded flexible flowlines reduces costs. Frigstad D90 by Frigstad Engineering The Frigstad D90 rig design is a new ultradeepwater semisubmersible drilling rig using several groundbreaking designs that reduce environmental impact, improve safety for both equipment and crew, and provide significant time-saving and efficiency features, minimizing down time and reducing the cost of construction of offshore wells. The D90 design will have a major effect on the offshore drilling industry. Its many special features significantly reduce the overall cost of drilling an offshore well. It also improves the safety for both equipment and crew and performs most operations more efficiently and with less environmental impact than other designs. This is achieved through high capacities, several fully redundant systems, full dual activity in two equally capable well centers, elimination of blind‐ lifts, improved logistics and material handling on all levels, vertical storage of both riser and drillpipe, and a unique containment and storage of drill cuttings. CoreVault System by Halliburton Attend the world’s only Arctic event backed by the combined reach and credibility of 14 of the world’s top engineering and scientific organizations and built with expertise representing every discipline. The Halliburton CoreVault system can capture up to 10 samples in a sealed container in one run. This prevents reservoir fluids from escaping during core retrieval and transport. Keeping 100% of fluids in place enables accurate measurements instead of estimates, resulting in better information for making critical decisions about reservoirs. The CoreVault system integrates fluid sampling with rock coring, enabling fluid samples to be obtained from low-permeability reservoirs, while preventing fluids from escaping during the acquisition of highquality, rotary sidewall cores. This solution provides a more accurate volumetric picture of the oil and gas trapped in unconventional reservoir rocks. Operators can contain and bring reservoir fluids within rock samples to the surface, allowing for the volume measurement of hydrocarbons in place. To compensate for the pressure and fluid loss of traditional coring methods, operators use a mathematical model to estimate fluid loss on the basis of experience from area wells. Because natural variances occur between wells and even zones in a well, this estimate can be inaccurate. Operators had to fracture and complete an entire well to learn how much oil and gas they actually had. The CoreVault system allows up to 10 cores to be sealed at reservoir conditions in a wireline run. Intelligent Circulation While Drilling (iCWD) Tool by MIT Technologies The iCWD tool is a drilling valve system that provides remote-controlled operation using agile activation. iCWD tools spaced apart in any configuration can be operated individually to any of four modes using revolutions per minute, flow, or pressure in a few minutes, improving well control and drilling economics. In bypass mode, a large side port and positive seal allows for safe lost-circulation material or cement plug placement reducing the risk of damaging bottomhole assemblies (BHAs) below the tool or pulling out of hole to place a cement plug. This mode allows both circulation and reverse circulation as needed by operator. In hole-cleaning mode, high flow rates can be pumped beyond the BHA limitation by diverting part of the mud through the side port and part through BHA below the tool. This is valuable in improving annular velocity and hole cleaning in extended-reach wells and when having multiple iCWD tools in the same string. In isolation mode, the iCWD tool acts as a downhole barrier, isolating the string above the tool, a feature that is of importance in certain well-control situations. Renaissance Systems by Weatherford Renaissance Systems is a unique combination of brownfield technologies including safety valves, wellheads, completion tools, and capillary services. Renaissance Systems offers solutions to revive old wells and meet the challenge of extending the productive life of aging wells and reservoirs. The Weatherford Damaged Control Line (WDCL) safety-valve system is an integrated solution for wells that are experiencing a loss of functionality of existing surface controlled subsurface safety valve because of damaged control line. The crux of this solution is to install a new control line internal to the production tubing, eliminating the need to rely on a storm choke or perform a major workover. The standard WDCL system uses Weatherford’s line of Optimax wireline retrievable safety valves, which is landed in the profile of existing tubing-retrievable safety valve or safety valve landing nipples. A stinger assembly is stung on to the newly installed wireline-retrievable safety valve and allows communication to the surface through a control line. The control line terminates and is hung off at the tubing hanger profile or nipple profile at the wellhead by the control-line hanger. Wellhead penetration of control line fluid is achieved through a Weatherford RenGate modified lower master valve. The WDCL safety-valve system comes in a wide range of sizes and working pressures and is installed through slickline and capillary unit operations. 11 OTCASIA2016 New Programs Offer Insight for Students, YPs Stephen Whitfield, Staff Writer T he 2016 Offshore Technology Conference (OTC) Asia will provide high school students and young professionals (YPs) just entering the oil and gas industry with opportunities to learn more about its inner workings. Through two new programs being held at the conference—the Next Wave and the High School Student Science, Technology, Engineering, and Mathematics (STEM) Event—young attendees will get a chance to satisfy their curiosity about the industry and develop contacts with industry leaders as they embark on their careers. The Next Wave With the global energy industry going through a decline in oil pricing and the aftereffects of the subsequent downturn—a layoff of talent and a drop-off in training, development, and hiring plans—YPs face significant obstacles in trying to establish themselves in the industry. They may face new career dynamics and may require different skill sets from previous generations of industry leaders. Given these obstacles, OTC Asia will be host to the Next Wave, a program that aims to provide a blueprint for how YPs can understand the new economic and market forces to support them as they build successful and sustainable careers in an uncertain business environment. The program offers YPs in the industry the chance to network with seasoned industry veterans, learn about the most important challenges and opportunities within the industry, and receive guidance on how to make the most of their careers. The program began on Monday, starting with a welcoming session at 0900, after which Dato’ Wee Yiaw Hin delivered keynote remarks. Wee Yiaw Hin currently serves as executive vice president and chief executive officer of upstream business at Petronas, joining the company after an extensive career with Shell. He was a director of the Society of Petroleum Engineers (SPE) Northern Asia Pacific Region from 2009 to 2012 and is now a member of the SPE Asia Pacific Board of Directors. The day’s activities included roundtable breakout discussions, a luncheon, a panel session, and a networking reception. The panel focused on the emerging trends in the energy industry, providing participants with a better understanding of recent events and supporting them in building a competitive edge in the workforce. Energy professionals younger than 35 or with less than 10 years of working experience in the oil and gas industry were eligible to participate in the Next Wave. STEM The high school student STEM event is aimed at the next generation of oil and gas professionals. The workshop, which takes place Young professionals gather for the Next Wave program Monday afternoon at the second OTC Asia. on Thursday, offers the opportunity for high school students in Grades 10 through 12 to learn more about the industry and gain insight on the nuts and bolts of oil and gas operations. The workshop begins at 0900 with welcoming remarks, after which follows the first session of hands-on activities. In addition to helping students learn more about the industry, these activities will provide educators with interactive, age-appropriate experiments using basic household items that illustrate energy concepts. The experiments are inexpensive and can easily be done in the classroom with their students. In the first session, students will explore the properties of oil and natural gas and their formations and investigate how resources are extracted from these formations through a series of activities: perforated well casing, sound waves, and “getting the oil out.” Following a 30-minute coffee break, participants will listen to three industry talks. The first talk is Oil and Gas 101 from Petrosains. Mohamad Rizam Sarif will deliver the second talk, What It’s Like to Work in the Oil and Gas Industry. Sarif is general manager and geoscience advisor of strategy and new ventures at ExxonMobil Exploration and Production Malaysia. Datuk Ir. Dr. Abdul Rahim Hashim, vice chancellor and chief executive officer at Universiti Teknologi Petronas, will give the third talk, How to Get Into the Oil and Gas Industry. Participants will then take part in the second hands-on activities session, studying the porosity of rock formations, the density of oil and gas, core sampling, and oil seeps. After a luncheon, they will split into groups and take a tour of the OTC Asia exhibition hall, visiting preselected exhibitors. Finally, there will be a brief talk on highlights and lessons learned by each student and students will complete feedback forms. The workshop will be host to approximately 100 students and teachers. 12 OTCASIA2016 Technical Session Focuses on Safety Challenges Adam Wilson, Show Daily Editor U nderlying each project in the oil and gas industry is a drive for safety, and maintaining that drive and focus is often a source of challenges. Today, starting at 1400, Technical Session 5 will present four papers that examine safety and environmental challenges. The session will be led by Jenq Ping Lin of Sarawak Shell and Elie Daher of United Safety. The first paper to be presented will examine the industry’s evolution in oil-spill response since the Macondo disaster in the Gulf of Mexico 6 years ago. “Six Years On: How the Global Industry Has Risen to the Oil Spill Response Challenge” will be presented by S.A. Flynn from IPIECA. The enormous spill in the Gulf of Mexico in April 2010 prompted the industry to re-evaluate its preparedness for a spill or blowout. To further that evaluation, the International Association of Oil and Gas Producers formed the Global Industry Response Group to create practical recommendations from lessons learned. The industry international environmental association IPIECA managed a jointindustry project to progess recommendations on emergency management and oil-spill preparedness. The paper will review Phase I of the project and how it is changing the way organizations plan for and respond to accidents. The second paper to be presented at the session looks at the challenges presented by produced water. “Produced Water Management—The Challenges Faced” examines the factors that influence the strategy for produced water treatment and disposal. For water destined for reinjection, the quality that needs to be achieved is often more stringent than for disposal because of limitations on solids loadings, particle sizes, and oil concentrations. The paper presents a case study conducted offshore UK in the North Sea at a site that had been struggling to achieve the water quality needed for reinjection. The study presents how the process performance Technical Session 5: Safety and Environment Challenges 1600–1730, Room 408/409 1600–1620: Paper 26455—Six Years On: How the Global Industry Has Risen to the Oil Spill Response Challenge 1620–1640: Paper 26402—Produced Water Management—The Challenges Faced 1640–1700: Paper 26417—Prototype Balloon for Inspection of Offshore Platforms Powered by Renewable Energy Controlled by Electronics Prototyping Platform 1700–1720: Paper 26762—Cost-Effective Project Delivery Through Fire and Gas Mapping Study—Performance Evaluation Using Improved Risk-Based Approach was improved once the separation challenges were identified and understood. The work led to reduced operation costs and reduced production time while resulting in water quality that was within required specifications without affecting export oil quality. The third paper of the session presents the design of a prototype balloon to be used for inspection of offshore facilities. “Prototype Balloon for Inspection of Offshore Platforms Powered by Renewable Energy Controlled by Electronics Prototyping Platform” shows the use of a balloon anchored to a vessel for continuous monitoring with an infrared camera. The final paper to be presented, “CostEffective Project Delivery Through Fire and Gas Mapping Study—Performance Evaluation Using Improved Risk-Based Approach,” presents a risk-based fire and gas mapping study. Papers Present Case Studies of Completions Chris Carpenter, Staff Writer W hile the theoretical aspects of petroleum engineering are naturally a common focus of conference papers, engineers remain highly interested in acquiring knowledge that can be directly applied in the field—specifically, case studies. Tuesday afternoon’s Completions: Operations and Case Studies technical session, Session 6: Completions: Operations and Case Studies 1600–1730, Room 410 1600–1620: Paper 26644—Perforating the Largest High-Pressure Wells in the Gulf of Mexico 1620–1640: Paper 26705—Workflow for History Matching and Predicting Mud Loss Recovery From the Formation Using a Coupled Wellbore-Reservoir Transient Simulator 1640–1700: Paper 26416—Optimized Well Performance Through Stage Fracturing and Coiled Tubing Perforations and Isolation Operations in a Horizontal Tight Gas Reservoir: A Case Study 1700–1720: Paper 26669—Managing Total Circulation Losses With Pressurized-Mud-Cap Drilling (PMCD) During Completion: Case History of Practical Solution ENDLESSINNOVATION Offshore Technology Conference 2016 2–5 May | NRG Park | Houston, Texas, USA The Offshore Technology Conference (OTC) is where energy professionals meet to exchange ideas and opinions to advance scientific and technical knowledge for offshore resources and environmental matters. OTC attracts more than 90,000 attendees from 130+ countries and more than 2,500 exhibiting companies. OTC is sponsored by 13 nonprofit organizations in the energy industry, who work cooperatively to develop the technical program. Revenue from OTC directly benefits the membership of these societies. REGISTRATION OPEN NOW Visit 2016.otcnet.org for additional information. 12642 OTC16 RegisterNow 1/4 131x196mm 2016-02-29.indd 1 2/29/16 1:02 PM the sixth and final of the day, provides OTC Asia attendees an opportunity to learn about completions scenarios in which a variety of technical challenges were encountered, including perforation of high-pressure wells, production optimization of low-permeability reservoirs, and limitation of severe losses in highly fractured limestone formations. The session will be chaired by Mohd. Zaidan Khalid and Orient Samuel of Petronas. The first of the session’s featured papers is “Perforating the Largest High-Pressure Wells in the Gulf of Mexico,” by M. Brinsden, Z. Gavric, and C. Le of Shell and C. Baumann, M. Smart, and C. Stulb of Schlumberger. The paper examines an operator’s experience with the Gulf of Mexico’s Lower Tertiary play, where wells can have 20,000-psi highpressure environments. In these deepwater environments, risk control is very important because gunshock and debris problems can lead to multimillion-dollar losses in nonproductive time; in extreme cases, gunshock problems can lead to lost wells. To undertake these challenges, a new lowperforating shock-and-debris gun system was used. In comparison with standard high-pressure guns, the gun system produces much less gunshock and negligible amounts of debris, thus minimizing gunshock risk and reducing cleanup runs typically needed to recover perforating debris. “Optimized Well Performance Through Stage Fracturing and Coiled Tubing Perforations and Isolation Operations in a Horizontal Tight Gas Reservoir: A Case Study,” by A. Anand of Schlumberger, discusses a tight gas field off the western shore of India that features a challenging low-permeability environment. The paper describes a plan to fracture-stimulate eight zones in four stages and later mill the isolation plugs to put the well into production from all zones. An innovative perforation technique of using dual-firing head guns—an electronic firing head and circulation ball drop-activated firing—in the same run to selectively perforate two clusters was used. Ultimately, the well in question became the first successful horizontal well in India completed by multistage hydraulic fracturing. A third featured paper is “Managing Total Circulation Losses With Pressurized-Mud-Cap Drilling During Completion: Case History of Practical Solution,” by M. Hajiyeva, G.A. Osuji-Bells, M. Rizwan Roslan, O.B. Samuel, M. Zulkhairi Zahari, A. Upadhyay, and M. Buch of Petronas. The authors discuss the shortcomings of loss-circulation-material approaches to reducing losses in limestone formations, discussing their own success in implementing a pressurized-mud-cap-drilling (PMCD) approach, itself an outgrowth of managed-pressure-drilling. Five hightemperature wells have been designed using the technique and have resulted in significant savings in rig time and cost as well as increases in formation-damage reduction and operating efficiency. The authors summarize the practical experiences gained. 13 OTCASIA2016 Around the Exhibit Floor A roundup of technology being showcased at OTC Asia. Robotics Reduces Asset-Inspection Costs In an environment of ever-increasing asset-integrity inspection costs, PTTEP has researched the potential use of robotic technologies, specifically in the high-cost critical inspection sectors of their business. These entail inspection of elevated, live, and difficult-to-access facilities and the other extremes of deepwater subsea inspections, such as pipeline-integrity inspection. With an eye on potential development of engineers, PTTEP formed a Robotics Club to cultivate a companywide technology and innovation culture wherein various ideas related to asset inspection were spawned and studied, resulting in the evolution of two distinct robotic systems that have been developed into working prototypes that address company inspection requirements. The first was the PTTEP Multipurpose Plant Inspection Octocopter (MPIO) that was designed and developed in-house to deliver cost-effective solutions for industrial aerial inspection activities without compromise on safety. While using its various intelligent flight modes, the MPIO easily affords close visual inspections of difficult-to-reach facilities. For example, the MPIO can provide high-resolution still and video imagery for close visual and thermal inspections of flare installations, which include the condition of the flare tip, flare deck, radiation shields, supporting structures, Laboratory-scale prototype HAUV. Photo courtesy of PTTEP. pipework, and flare-ignition system. With its adaptable plug-and-play design, along with further development of automated functions, it is envisaged that the company will soon use the MPIO for other applications that can benefit from its multifunctional capabilities. The second project spawned by the Robotics Club in collaboration with the company Maintenance and Inspection Department was the development of a Hybrid Autonomous Underwater Vehicle (HAUV) system intended for subsea-pipeline inspection. This method uses two unmanned vehicles operating together during the inspection. The first vehicle is a compact unmanned surface vehicle (USV), which follows the pipeline from the sea surface and receives and transmits communications by satellite to a central control station onshore. The second vehicle is an HAUV, which communicates with the USV by a fiber-optic tether. The USV supplies power, surfacenavigation information, and commands to the HAUV, while the HAUV reciprocates with underwater inspection information. The fiberoptic tether is necessary to enable transmission of live-stream electronic data that currently cannot be effectively transmitted through seawater by wireless link. Studies are still under way to refine HAUV capabilities, but, already, at this early stage of development, laboratoryscale units have been developed and tested in various environments. Booth B111. Mobile Production Unit Offers Flexible Coating Applications The requirement for local content is growing, and, more often than not, large parts of projects are now being completed within the same country. In response to this trend, Trelleborg has increased its flexibility to enable the coating process to take place locally as well. Trelleborg’s offshore operation has launched its brand new Mobile Production Unit (MPU), a portable coating facility that will enable onsite coating of thermal insulation, passive fire, and corrosion protection anywhere in the world. The unit can be mobilized in a short time frame and sent straight to the site to apply coatings such as Trelleborg’s thermal insulation Vikotherm R2 and Firestop, a jet-fire-resistant material. This increases project flexibility and reduces the costs and lead times associated with transporting parts to a specialist coating facility. The MPU unit contains an extruder and a rotating spindle with the possibility for side extrusion of Vikotherm R2 directly to straight pipes of up to 12 m. The extruder is also used to produce 25-mm-thick Vikotherm R2 profiles for coating of complex geometries such as bends, valves, and flanges. In addition, there are a number of vulcanization containers for up to 20-m pipes or structures. Finally, the MPU concept includes a conventional coating machine for coating of straight pipes for passive fire and corrosion protection. The highperformance-rubber-based composite applied by the unit (Vikotherm R2) insulates and protects jumpers, manifolds, risers, pipelines, flow lines, and other subsea structures. Designed to last a minimum of 30 years, the material is maintenance-free, avoiding future replacements or rectifications. Vikotherm R2 is practically incompressible and resistant to both seawater and impact. It effectively withstands low and high temperatures and gives corrosion and mechanical protection. The MPU will provide advanced corrosion protection against all corrosive agents commonly encountered in the offshore sector. It also features state-ofthe-art fire-stop technology to withstand all types of fire, including jet fire, and offers blast and impact resistance. The unit also features a complete workshop, including a first aid kit and all consumables needed for onsite installation. Booth E411. Hi! We are Derrick and Soo, the OTC Asia mascots. Just in case you didn’t know, Soo means “excellence” and “long life” in Korean. I’m Derrick. I think you know where my name originates. Starting tomorrow, FIND US onsite and WIN BIG! Go to the Social Media Wall in Exhibition Hall 9, Level 3, and find out more. Prizes Grand Prize! 14 OTCASIA2016 Filter Medium Removes Contaminants From Seawater Equipment on an offshore platform must be durable and reliable; with respect to filtering, wedge wire lives up to this expectation. In the application of filtering injection or produced seawater, high flow rates are common. Trislot’s Wedge Wire has a continuous slot that provides a high open area; therefore, the total volume of installation space is less than that of other media. Small footprint and light weight are of importance in any offshore application. Because of wedge wire’s strong mechanical construction, no reinforcement is needed in normal operating conditions. Wedge-wire tubes or screens are composed of V-shaped wires that are welded onto support wires in an automated welding process. The wires are resistance welded at a precisely measured distance from one another, creating a slot. This slot can vary upon customer request between 15 microns and several millimeters. During the filter cycle, the solids are deposited on the smooth surface. This cake acts as an extra filter for finer particles. The fine solids that slip through do not get stuck because of the conical slots. By reversing the flow, the cake and dirt are removed from the filter surface. The tube is clean again, and the filter cycle may initiate again. To ensure extended reliability in the abrasive conditions created by seawater, Trislot offers a wide range of wedge-wire materials. Welding end pieces in these materials requires special skills and know-how, and Trislot has spent years mastering the process. There are several possible applications for wedge wire in filtering injection or produced seawater: automatic backwash filters, where wedge wire Trislot’s Wedge Wire products deliver high levels of filtration for seawater applications. Photo courtesy of Trislot. itself is the filter medium; multimedia filters, where wedge wire acts as a support screen for other filter media such as graphite, anthracite, sand, and gravel; and nutshell filters, whereby suspended solids and hydrocarbons are removed from produced water by using wedge-wire filter bottoms, laterals, and nozzles. In addition, wedge-wire scrubber screens are used to discharge dirty water. Each application requires a different element, but all can be served with wedge wire and all have the benefit of a large open area and high mechanical strength. Booth F709. Spinnerless Production Logging Tool OpenField develops miniaturized downholemeasurement tools for applications such as well-performance evaluation, well testing, fracture monitoring, well integrity, and subsea-flow assurance. In the case of downhole The Flow Array Sensing Tool production logging tool. Image courtesy of OpenField. measuring tools, smaller means better with lower costs. Recent developments in the world of microtechnologies have enabled the advent of unique measurement solutions for demanding oilfield environments and challenging-cost reduction needs in the current business downturn. At OTC Asia, OpenField will be presenting in its new production logging tool (PLT), the Flow Array Sensing Tool (FAST). It is a unique PLT; current PLTs available on the market measure flow through a spinner, while the OpenField FAST is spinnerless. It measures the flow through its patented Ultrasonic Doppler Flow Sensor. These innovations (the Ultrasonic Doppler Flow Sensor and the spinnerless PLT) represent major technological developments. Because it is spinnerless, the FAST has no moving parts (meaning that it has no risk of clogging and is almost maintenance-free), and there is no shear issue because the Ultrasonic Doppler can measure lower flow rates than spinners. Thanks to all its miniaturized instruments, the FAST is very short (34 in.) and thus is an ideal solution for horizontal wells and stratified zones where conventional spinners will struggle to provide accurate measurements. Additionally, the FAST is equipped with other innovative solutions from OpenField, such as the Micro Electro Mechanical Systems pressure sensor and electrical/optical probes for fluid identification. B702. Cybersecurity Guidance Provides Flexible Framework SURF: . 1730 . . 1615 . . Driven by efficiency and production gains, the offshore industry has moved over the last few years to tie many facets of operations to the Internet. On the positive side, this move has resulted in the ability to gather and access valuable real-time data. Also, more operations have become automated, allowing remote control of offshore operations and improved operational safety. On the negative side, because the computer hardware required to make this possible was not designed to operate on an open network, companies that have moved to take advantage of the benefits offered by automation and realtime data access now face cybersecurity threats. Today, the industry is looking for guidance on how to deal with this threat and assistance in executing solutions. To answer this need, the American Bureau of Shipping (ABS) has published Guidance Notes on the Application of Cyber Safety Principles to Maritime Operations, which provides a technology-led approach to cybersecurity, automated system safety, data management, and software assurance for both the offshore and marine industries. The guidance note provides a framework for organizing security requirements, tasks, and activities by prioritizing cyber-related work efforts on the basis of what an organization can support and maintain, rather than as a list of controls. This publication is the first in a planned series of products that addresses cybersecurity under a new framework known as ABS CyberSafety. The cybersafety guidance note identifies best practices for cybersecurity across a wide range of processes and activities—the first time the entire set of cyber-related needs has been addressed specifically for the marine and offshore industries. This guidance is particularly valuable because it offers a scalable approach to cybersecurity that can be applied to a single unit or a fleet of assets and can be used with other compliance regimes to achieve sustainable, measurable, and secure asset conditions. Booth D411. Safety-Valve System Aids Replacement of Control Lines The Weatherford damaged-control-line (WDCL) safety-valve system, part of the Renaissance system of safety valves, enables operators to replace damaged control lines and install new surface-controlled subsurface safety valves (SSSVs), thereby restoring operation of the well. Damaged control lines render existing safety valves inoperable and shut down production. In the past, the only available solutions were to use a storm choke—which can often lead to functionality and compliance issues, especially in offshore environments—or perform a costly full workover to pull tubing. This requires killing the well, which can significantly damage the formation and even permanently destroy the well. The WDCL system offers a safer, more cost-effective alternative to such traditional workovers to get the well back online quickly. The system consists of the Ren Gate wellhead penetration conversion kit, a control-line hanger, a control-line stinger, and a wireline-retrievable SSSV. It comes in a wide range of sizes and working pressures for different applications. Because the WDCL system is deployed with standard wireline and capillary string units, without the need for special locks The Renaissance damaged-controlline system from Weatherford is a safety system designed to retrofit a well that has been shut in as a consequence of a damaged SSSV or a blocked or damaged control line to the SSSV. Image courtesy of Weatherford. 15 OTCASIA2016 and other mechanical devices, it results in less down time compared with tubingworkover operations. In 2015, the system was successfully installed and used in three offshore wells in Malaysia, restoring control by SSSV and bringing each well back online with no significant flow restriction observed. The WDCL system has also been deployed in an offshore well in Indonesia, where it successfully replaced a blocked control line and installed a new SSSV, maintaining the original production rate of 2.6 MMscf/D and eliminating the need for a workover. The WDCL system is highly adaptable and can be customized for almost any platform or well site. It fits into any size safety valve from 2⅞ in. through 7 in. New safety valves are sized to match the production tubing. The WDCL system is well suited for retrofitting wells with control line and resulting safetyvalve problems. Booth D101. Surface-Preparation Machines Obtain ATEX Certification Rustibus is a manufacturer of surfacepreparation machines, able to provide asset owners and operators with fully ATEXcertified mechanical descaling machines. An ATEX conformity and ignition safety assessment has been performed in cooperation with Dalseide Shipping Services for the evaluation of their surface-treatment-tool series, the Rustibus De-Scaler Series, aiming at ATEX approval of the system as Category 2 equipment for use in Zone 1 for explosive atmospheres according to the ATEX 94/9/ EC directive and the harmonized European Standards EN 13463-1 and EN 13463-5. This assessment included intensive, rigorous, and thorough testing of the Rustibus line, using specialist thermal imaging and testing of the machines on a number of different surface combinations ranging from “normal operation” to “deliberate misuse.” The tests were conducted in an explosive and volatile hexane/air mixture and showed that the Rustibus machines do not produce strong enough ignition sources to ignite explosive atmospheres. The results of this assessment showed that the Rustibus series satisfies the requirements needed for them to be recommended for ATEX approval as Category 2 equipment for Gas Group IIA gases. It was on the basis of these studies that Rustibus received its ATEX (EX) Certification from Det Norske Veritas. With this new development, assets of all kinds can now benefit from the comprehensive range of Rustibus surface-preparation machines ranging from larger walk-behinds to small hand tools. Given the heightened emphasis on cost savings owing to the current depressed state of oil prices and the focus on climate change and pollutant reduction, Rustibus paves the way to a more-sensible, cost-conscious, environmentally friendly approach toward maintenance with a reduced reliance on abrasive blasting. Main decks can be easily maintained on site with a handful of crew, gear, and equipment as compared with current practices, resulting in significant cost savings. Booth C401–C404. Hot-Bolting Clamp Avoids Using Hydraulics, Pneumatics Hydratight’s patented MorSafe Hot Bolting Clamps are designed and tested to ASME 8 Division 2 standards and have been awarded Det Norske Veritas GL Approval. The clamps provide the safest solution applicable to all flanged joints of four or more bolts. The clamps are the only hot-bolting solution for pipelines carrying hydrocarbons. Hot bolting Rustibus surface-preparation machines are ATEX certified. Photo courtesy of Rustibus. The MorSafe hot-bolting clamp. Photo courtesy of Hydratight. is defined as the engineering procedure of replacing or tightening of flange bolts while the pipeline is still live (or pressurized). The complex procedure requires a clamp to maintain pressure on the flange while bolts are being worked on. Other clamps in the market operate using a G-clamp principle, which can put undue pressure onto the flange and gasket. Additionally, this arrangement can require the use of hydraulics to deploy, and pressure distribution on the flange is known to be uneven—thus, hot bolting on four-bolt flanges is not recommended. But Hydratight’s clamp addresses these issues to allow far wider options for operators. Designed to be simple and safe, Hydratight’s Hot Bolting service minimizes the possibility of disturbing the gasket. Fitting and preloading Hydratight’s MorSafe clamp is simple; it does not require any pneumatics or hydraulics for engagement with the flange. The lightweight and compact design fits almost all flange-space restrictions and, because of its robustness, enables speedy bolt replacement. Safe hot bolting on old flange connections mitigates a number of concerns, including unknown remaining bolt tension after a long time in operation; unknown conditions of the bolts and gaskets; failure of bolts during hotbolting operations on adjacent bolts; unknown external loading; and changes in operating parameters such as flow, temperature, or pressure. Booth D505.
