Petrofac has been awarded a three year contract to provide a condition monitoring programme for Bumi Armada’s Olombendo floating, production, storage and offloading (FPSO) unit bound for offshore Angola.
As a certified American Bureau of Shipping (ABS) Recognised External Specialist in Condition Monitoring and Mobius Institute Board of Certification training partner, this contract builds on the extensive track record Petrofac has developed through its asset management team in supporting FPSO requirements.
Currently under conversion in Singapore, FPSO Olombendo will be deployed to the Eni field 15/06 East Hub field development towards the end of 2016.
The scope of work will include the implementation of the condition monitoring programme, training, an ABS initial submission report, monthly vibration and lube oil analysis, risk based reporting and hardware and software support through Petrofac’s proprietary CBMnet system.
Petrofac has more than 10 years of specialist asset management experience in engineering, operations, maintenance and integrity, supporting the systems and processes that influence performance on a diverse range of assets, from offshore installations and associated infrastructure to major processing facilities and LNG plants.
Steve Johnson, Vice President Asset Management, Petrofac Engineering & Production Services, said: “We will work in alignment with Bumi Armada to transition the current maintenance strategy on-board the FPSO from preventative to predictive. Through this change we will actively monitor and measure asset-specific variables that can impact and disrupt performance. Our CBMnet system will work in parallel to support the programme, providing recommendations that will optimise maintenance activities to increase overall asset reliability and achieve maximum production.”
This award builds on a contract secured in May 2015 from Bumi Armada to provide a maintenance management system for the Armada Kraken FPSO, deployed in the East Shetland basin.
CBMnet is an internet-enabled management reporting system that provides clients with the ability to optimise maintenance and manage the risk to delivery of their business objectives through the assessment of critical rotating machinery condition. The system is hosted securely online and managed by Petrofac’s in-house team. It has provided support for over 92 facilities across 15 countries.
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Headline crude prices for the week beginning 11 March 2019 – Brent: US$66/b; WTI: US$56/b
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GEO ExPro Vol. 16, No. 1 was published on 4th March 2019 bringing light to the latest science and technology activity in the global geoscience community within the oil, gas and energy sector.
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In 2017, Norway’s Government Pension Fund Global – also known as the Oil Fund – proposed a complete divestment of oil and gas shares from its massive portfolio. Last week, the Norwegian government partially approved that request, allowing the Fund to exclude 134 upstream companies from the wealth fund. Players like Anadarko Petroleum, Chesapeake Energy, CNOOC, Premier Oil, Soco International and Tullow Oil will now no longer receive any investment from the Fund. That might seem like an inconsequential move, but it isn’t. With over US$1 trillion in assets – the Fund is the largest sovereign wealth fund in the world – it is a major market-shifting move.
Estimates suggest that the government directive will require the Oil Fund to sell some US$7.5 billion in stocks over an undefined period. Shares in the affected companies plunged after the announcement. The reaction is understandable. The Oil Fund holds over 1.3% of all global stocks and shares, including 2.3% of all European stocks. It holds stakes as large as of 2.4% of Royal Dutch Shell and 2.3% of BP, and has long been seen as a major investor and stabilising force in the energy sector.
It is this impression that the Fund is trying to change. Established in 1990 to invest surplus revenues of the booming Norwegian petroleum sector, prudent management has seen its value grow to some US$200,000 per Norwegian citizen today. Its value exceeds all other sovereign wealth funds, including those of China and Singapore. Energy shares – specifically oil and gas firms – have long been a major target for investment due to high returns and bumper dividends. But in 2017, the Fund recommended phasing out oil exploration from its ‘investment universe’. At the time, this was interpreted as yielding to pressure from environmental lobbies, but the Fund has made it clear that the move is for economic reasons.
Put simply, the Fund wants to move away from ‘putting all its eggs in one basket’. Income from Norway’s vast upstream industry – it is the largest producing country in Western Europe – funds the country’s welfare state and pays into the Fund. It has ethical standards – avoiding, for example, investment in tobacco firms – but has concluded that devoting a significant amount of its assets to oil and gas savings presents a double risk. During the good times, when crude prices are high and energy stocks booming, it is a boon. But during a downturn or a crash, it is a major risk. With typical Scandinavian restraint and prudence, the Fund has decided that it is best to minimise that risk by pouring its money into areas that run counter-cyclical to the energy industry.
However, the retreat is just partial. Exempt from the divestment will be oil and gas firms with significant renewable energy divisions – which include supermajors like Shell, BP and Total. This is touted as allowing the Fund to ride the crest of the renewable energy wave, but also manages to neatly fit into the image that Norway wants to project: balancing a major industry with being a responsible environmental steward. It’s the same reason why Equinor – in which the Fund holds a 67% stake – changed its name from Statoil, to project a broader spectrum of business away from oil into emerging energies like wind and solar. Because, as the Fund’s objective states, one day the oil will run out. But its value will carry on for future generations.
The Norway Oil Fund in a Nutshell