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P Marketing Services Media information 2018 OIL & GAS TECHNOLOGY Tecnologia de Petróleo e Gás 2017 the year of recovery 2017, o ano da recuperação www.oilandgastechnology.net ISSUE 33 | 4º TRIMESTRE 2016 SUBSCRIBE FOR FREE at www.oilandgastechnology.net The next frontier for digital technologies A próxima fronteira para tecnologias digitais Taping an old resource Aproveitando um recurso antigo Wireless for wellheads Tecnologia sem fio para cabeças de poço Dismantling barriers to digitalisation Superando barreiras para a digitalização www.oilandgastechnology.net ISSUE 13 | WINTER2016 SUBSCRIBE FOR FREE at www.oilandgastechnology.net Tecnología de Petróleo y Gas OIL & GAS TECHNOLOGY 2017 the year of recovery 2017 el año de la recuperación La próxima frontera para las tecnologías digitales Explotar un recurso viejo Tecnología inalámbrica para las bocas de los pozos The next frontier for digital technologies Taping an old resource Wireless for wellheads ISSUE 49 WINTER 2016 石油天然气 www.oilandgastechnology.net SUBSCRIBE FOR FREE at www.oilandgastechnology.net OIL & GAS TECHNOLOGY 2017 the year of recovery 2017 复苏之年 The next frontier for digital technologies 数字技术的前沿应用 Taping an old resource 开发利用旧资源 Wireless for wellheads 井口无线监控仪表 Dismantling barriers to digitalisation 排除数字化障碍 2017 the year of recovery OGT OIL & GAS TECHNOLOGY The Future for oil and gas The next frontier Wireless for wellheads Dismantling barriers to digitalisation ISSUE 41 | WINTER 2016 www.oilandgastechnology.net OIL & GAS TECHNOLOGY لتعافيم ا عا2017 www.oilandgastechnology.net ISSUE 18 | WINTER 2016 SUBSCRIBE FOR FREE at www.oilandgastechnology.net لغاز تقنية النفط واThe next frontier for digital technologies Taping an old resource Wireless for wellheads Dismantling barriers to digitalisationA ت الرقميةلتقنيالتالية ل الجبهة ا قديمل مورد استغباركية لرؤوس اسل اله الرقمنةئق تجايك العوا تفك2017 the year of recovery Технологии нефтегазовой промышленности www.oilandgastechnology.net SUBSCRIBE FOR FREE at www.oilandgastechnology.net ISSUE 35 WINTER 2016 OIL & GAS TECHNOLOGY 2017 the year of recovery 2017 год — год восстановления The next frontier for digital technologies Новый рубеж для цифровых технологий Taping an old resource Раскрытие потенциала имеющихся ресурсов Wireless for wellheads Беспроводные технологии для скважин Dismantling barriers to digitalisation Устранение преград на пути цифровых технологий www.oilandgastechnology.net OGT OIL & GAS TECHNOLOGY

Transcript of Marketing Services · 2018-01-17 · SUBSCRIBE FOR FREE at ISSUE 33 |4º TRIMESTRE 2016 The next...

Page 1: Marketing Services · 2018-01-17 · SUBSCRIBE FOR FREE at ISSUE 33 |4º TRIMESTRE 2016 The next frontier for digital technologies A próxima fronteira para tecnologias digitais Taping

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Marketing ServicesMedia information 2018

OIL & GAS TECHNOLOGYTecnologia de Petróleo e Gás

2017 the year of recovery 2017, o ano da recuperação

www.oilandgastechnology.net

SUBSCRIBE FOR FREE at www.oilandgastechnology.net

ISSUE 33 | 4º TRIMESTRE 2016

SUBSCRIBE FOR FREE at www.oilandgastechnology.net

The next frontier for digital technologiesA próxima fronteira para tecnologias digitaisTaping an old resourceAproveitando um recurso antigoWireless for wellheadsTecnologia sem fio para cabeças de poçoDismantling barriers to digitalisationSuperando barreiras para a digitalização

MBOG33_Cover.indd 1 17/1/5 下午4:08

Latin America Sales: 713-580-8463Email: [email protected]

Su socio internacional para soluciones de tuberías

PipeLine Machinery International (PLM) ofrece un maximo rendimiento en maquinaria,soluciones de calidad y personal. Al ser el distribuidor global de CAT para la industria del pipeline loayudamos en donde sea su trabajo.

Nuestra linea completa de tiende tubos, equipo especializado en ductos y tecnologias de monitoreode carga lo ayudaran a trabajar de forma segura y eficiente. Trabajemos en conjunto.

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RENDIMIENTOEN EL TRABAJO.

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71H 60,000 lb. (27 215 kg)

PL61 40,000 lb. (18 145 kg) 71H

© 2016 Caterpillar. All Rights Reserved. CAT, CATERPILLAR, BUILT FOR IT, their respective logos, “Caterpillar Yellow,” the “Power Edge” trade dress as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission.

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Tecnología de Petróleo y Gas

OIL & GAS TECHNOLOGY

2017 the year of recovery

2017 el año de la recuperación

Ipsum is simply Spanish Text

Ipsum is simply Spanish Text

Ipsum is simply Spanish Text

Ipsum is simply Spanish Text

La próxima frontera para las tecnologías digitales

Explotar un recurso viejo

Tecnología inalámbrica para las bocas de los pozos

WIN

TER 2016

The next frontier for digital technologies

Taping an old resource

Wireless for wellheads

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ISSUE 49 WINTER 2016

石油天然气

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2017—复苏之年

The next frontier for digital technologies数字技术的前沿应用Taping an old resource开发利用旧资源Wireless for wellheads井口无线监控仪表Dismantling barriers to digitalisation排除数字化障碍

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2017 the year of recoveryOGT

O I L & G A S T E C H N O L O G Y

The Future for oil and gas

The next frontier

Wireless for wellheads

Dismantling barriers to digitalisation

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تقنية النفط والغاز

تقنية النفط والغاز

The next frontier for

digital technologies

Taping an old resource

Wireless for wellheads

Dismantling barriers

to digitalisationA

الجبهة التالية للتقنيات الرقمية

استغالل مورد قديم

الالسلكية لرؤوس اآلبار

تفكيك العوائق تجاه الرقمنة

2017 the year of recovery

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Технологии нефтегазовой промышленности

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2017 the year of recovery2017 год — год восстановления

The next frontier for digital technologiesНовый рубеж для цифровых технологийTaping an old resourceРаскрытие потенциала имеющихся ресурсовWireless for wellheadsБеспроводные технологии для скважинDismantling barriers to digitalisationУстранение преград на пути цифровых технологий

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OGTO I L & G A S T E C H N O L O G Y

Page 2: Marketing Services · 2018-01-17 · SUBSCRIBE FOR FREE at ISSUE 33 |4º TRIMESTRE 2016 The next frontier for digital technologies A próxima fronteira para tecnologias digitais Taping

It was back in 2003 that Oil & Gas Technology became the first publication to be published in China. Since that day, the magazine has grown to become the most influential journal within what is still the world’s fastest growing market.

Launches in other key growth markets – Russia, Brazil, Middle East and Latin America – soon followed. All these magazines are published in dual languages and distributed to key decision makers in each region.

All this is backed up by our flagship International edition that combines our unique regional databases to give you access to the specifiers, decision makers and purchasers in the world’s fastest growing oil and gas regions, their national oil companies, service companies and contractors - in one go, for a truly global experience.

The publications showcase the latest technologies and innovations which are continuing to shape the oil and gas industry for a unique growth market readership.

In each issue of Oil & Gas Technology our experienced editorial team brings exclusive and high quality news, interviews, case studies and technical articles that focus on key areas such as exploration and production, refining and processing, pipeline technology, transportation, storage and logistics as well as special reports and single issue supplements throughout the year.

No other publication can offer such comprehensive and targeted access to the world’s largest markets.

Mark Venables

Editor-in-Chief

Oil & Gas Technology

Page 3: Marketing Services · 2018-01-17 · SUBSCRIBE FOR FREE at ISSUE 33 |4º TRIMESTRE 2016 The next frontier for digital technologies A próxima fronteira para tecnologias digitais Taping

High quality editorial contentIn every issue our team of experienced journalists bring you the best news, interviews and features

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Events FocusEvents Focus

AOG a key event for the global oil and gas subsea sector in 2017

AOG’s importance as a leading promotor of the global subsea sector will again be on display when Australia’s largest

oil and gas event is staged in Perth, Western Australia, next February.

With subsea seen a key growth area in the South East Asian region, the sector will be a major discussion point at the Australasian Oil & Gas (AOG) Exhibition & Conference (AOG) 2017. Adding to the historic support of subsea at the 36-year-old event, the organisers have developed a high-powered Subsea Forum as an essential element of AOG in 2017.

The Subsea Forum, which will be staged in a specially constructed theatre on the exhibition floor across three days, will be free of charge to all attendees with over 15 sessions across the three-day program. The new addition to the AOG program has been well received by the subsea industry.

Frode Remvik, Subsea Energy Australia (SEA) Board member and PSM Subsea general manager, said the opportunity to bring specialists together is more important

than ever with the local oil and gas industry entering a mature stage after a project oriented, capital intensive period. “The subsea industry needs to interact much more than before. We need to model ourselves on what happened in the North Sea 20 years ago where collaboration, sharing and standardisation was driven by government as well as from the industry itself,” he added. “There are many projects that will be developed in Australia over the next decade and many of them will be subsea developments.

“A Subsea Forum works as a conduit for the necessary conversations and collaboration that must take place if Australia is to stay competitive.”

Tore Moe, the local Advisor with Norwegian Oil & Gas industry partners Intsok, said from the perspective of subsea technology, AOG is the main event in Australia. “AOG is a great event for the subsea community. It has been running for a number of years now and is recognised as a leading

subsea event in the region,” he added.Intsok will be focused on showcasing

Norwegian subsea technology at AOG and the recent operational success in the North Sea - in particular subsea processing, compression and vision for the subsea factory.

“Norway is leading the world in the development, testing and implementation of Subsea technologies. The Australian offshore market is very important for Norwegian companies as most of the recent and future developments are subsea and in remote areas,” Moe said. n

Mexico’s main event for the new energy market

From January 31st to February 2nd 2017, the second edition of the main event for the energy sector in Mexico,

Energy Mexico Oil Gas Power 2017 Expo & Congress, will take place at Centro Citibanamex (Mexico City). The event has a global perspective with the goal of boosting business opportunities in the energy sector in the country, while providing a strategic vision in a geopolitical and commercial context.

After the success of its first edition, Energy Mexico 2017 will include an exhibition that will attract more than 3,500 participants and

Talented next generation keen to step up as 10th IPTC ends

The 10th International Petroleum Technology Conference (IPTC) ended in Bangkok with an attendance of

over 3,700 industry professionals from 51 countries. The event drew speakers from the highest echelons of government, operators, service providers, advisory and research firms, and academia. In addition, 67 undergraduates took part in Education Week, and 78 high school students and 36 teachers joined in the Education and Teachers’ Days programme.

Under the theme ‘Innovation and Efficiency Excellence for our Energy Future’, the event featured a ministerial address, high-level plenary and panel sessions, a comprehensive

multidisciplinary technical programme, exhibition, emerging leaders workshop and various educational activities.

How the global oil and gas industry can continue attracting graduates in relevant disciplines into the industry, as well as nurturing young professionals in the initial years of their careers, was a focus of discussions over the past three days at IPTC.

Bringing the conference proceedings to a close, Somporn Vongvuthipornchai, president and CEO of PTTEP and 10th IPTC Executive

WPC launches largest global survey on women in the oil and gas industry

With women making up only 20 per cent of the industry workforce and nearly half the skilled professionals

in oil and gas about to retire in the next five to seven years during the big crew change,

companies will need to make it a business imperative to reach out and secure the other 50 per cent of the talent pool.

As part of a long-term study on “Promoting Women: A strategic approach to

Gender Equality in Oil and Gas”, the World Petroleum Council and The Boston Consulting Group (BCG), are aiming to put together a comprehensive assessment of the opportunities for Women in Oil & Gas and define a set of actionable recommendations to

help close the talent gap in the industry.The organisers are inviting all industry

professionals – male and female – to share their views in an in-depth survey of industry practices and preparedness for attracting and retaining female talent in the industry. With only ten minutes needed to complete it, and five language options, the survey will provide an insight into the current status of gender equality in the oil and gas sector around the world and help identify what has worked well so far in closing the gender gap and what more needs to happen to create gender equality.

The survey outcomes will form a reference report for the industry to put gender equality on the strategic agenda to close the talent gap. The final report will be presented to the over 5,000 oil and gas executives at the 22nd World Petroleum Congress in Istanbul in July 2017. n

local and international speakers, covering all subjects within the energy industry (oil, gas

and power) with a program of lectures and presentations in which the global and Mexican outlook of the energy sector will be thoroughly analysed.

Conditions in the international energy market change very fast and -at the same time- the Mexican sector is undergoing historic transformations. One such example is the new business plan announced by Pemex last month, which seeks to take advantage of the flexibily given to the company by the energy reform to face the current financial challenges. n

almost 100 companies and institutions. The congress will include the most prestigious

Committee Chairman thanked all participants, students, delegates, committee members, authors, exhibitors and sponsors for making IPTC a big success. “We have heard executives share their perspectives, exchanged technical knowledge, made new friends and given the future generation an insight into the industry,” he said. n

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The Perfect StormDecommissioning of oil and gas assets is becoming one of the most significant, uncertain and challenging projects that oil and gas companies have encountered as Mark Venables explains

Activities and expenditure are expected to ramp up over the coming decade, so it is vital that management and

shareholders fully understand the inherent risks associated with current estimates of their decommissioning liabilities.

Decommissioning programmes are complex and vary region to region. It has always been recognised within the industry that it is a major topic that will increasingly grow in importance as many rigs and structures near the end of the life but I’m sure many, myself included, were staggered by the figures released in a recent study from HIS Markit. The decommissioning of aging offshore oil and gas platforms, subsea wells and related assets is increasing dramatically, with more than 600 projects expected to be disposed of during the next five years alone. This rapid trend toward decommissioning is causing spending to rise significantly, according to the study.

The study expects spending on decommissioning projects to increase from approximately USD2.4 billion in 2015, to UDF13 billion-per-year by 2040, or an increase of 540 per cent. An additional 2,000 offshore projects will be decommissioned between 2021 and 2040, the report noted, and total expenditures from 2010 to 2040 will amount to USD210 billion. During the next five years, Europe will absorb approximately 50 per cent of global decommissioning spending as the industry removes major offshore structures from the North Sea. Each year, the industry currently decommissions an average of 120 projects on a global basis.

“In terms of decommissioning, the global offshore industry is headed for a perfect storm,” Bjorn Hem, senior manager of IHS Markit upstream costs and technology service and one of the study’s authors, said. “We see increasingly stringent decommissioning regulations coming into force while the

Final Word

inventory of structures nearing end-of-life status is getting larger and more complex.

“At the same time, the providers of decommissioning services are very fragmented, there are no dominant players, so this makes it even more difficult for offshore E&P companies and offshore service companies to accurately predict decommissioning costs and risks. This is why we embarked on a comprehensive analysis associated costs and supply side of this market.”

According to the report, as E&P activity has shifted to deeper waters, harsher environments and increasingly complex projects, some of which comprise hundreds of wells and miles of risers tied back to a few ultra-large platforms, operators now face enormous challenges when planning the removal of these assets. Some of these decommissions can cost billions of dollars and take years to successfully dispose of, and decommissioning delivers no return on investment or revenue, but instead carries significant environmental and regulatory liabilities.

The effective decommissioning of offshore platforms, subsea wells, and related assets is one of the most important business challenges facing the oil and gas industry today and in the future. Decommissioning represents a considerable shift in terms of sustainable business planning for most operators.

Despite E&P activity in open water that dates back more than 60 years, the offshore decommissioning industry is still essentially in its infancy, and as a result, decommissioning activities play only a minor, if any, role in many operators’ or vendors’ business plans. However, due to the increasing number of assets that are destined for decommissioning, along with the increasingly stringent regulatory and environmental considerations relative to offshore operations, this is quickly becoming a business priority for offshore operators.

Key environmental issues in decommissioning include dealing with any potential direct effects on the marine ecosystem, ensuring the appropriate use and containment of hazardous substances, and addressing waste management issues, including seabed debris accumulated during the life of the platform. Items typically involved in decommissioning include surface facilities, called topsides, as well as subsea installations, pipelines and wells. These topsides structures can vary greatly in size and function, from one small well/wellhead to massive deepwater installations, including large processing and storage facilities, and staff accommodation facilities.

Navigating the myriad environmental and waste management regulatory requirements that individual countries have regarding decommissioning is a significant operational challenge for operators and offshore vendors, the IHS Markit report said, and that equation is getting even more complex as decommissioning activity shifts from individual assets to entire fields, and to larger, more complex structures.

Historically, the Gulf of Mexico (GOM) and the North Sea regions, which entered the oil and gas industry first, have dominated decommissioning demand. Older offshore installations also exist in other regions, such as the Middle East, but because of their longer field life, IHS Markit expects these assets to operate for many years to come. n

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We have seen some changes in global energy over time. The industry has had highs and lows over the

years and continues to do so. But the sweep and clock-speed of change have taken on a different pace in the 21st century.

The oil and gas world has become much more competitive, with abundant supply now keeping prices low. At the same time, everyone is more aware than ever of the impacts from climate change and the need to reduce carbon emissions. Both of which mean that businesses are faced with hard decisions – and the choices they make will determine whether they succeed or fail.

According to Bob Dudley, BP group chief executive, the industry faces three key challenges – the three Cs: the challenge of competitiveness; the challenge of carbon; and the challenge of choice. “Let me start then with the competitiveness challenge and the fundamentals of supply and demand,” Dudley says. “As we are all very aware right now, we are going through a time where supply has outstripped demand. Technology has continued to unlock new sources of supply –

At the recent World Energy Conference in Istanbul Bob Dudley, BP group chief executive spoke about the challenges facing the oil and gas sector

The three Cs

Interview

notably shale oil and gas in the US.“At the same time, global demand growth

has slowed from the extraordinary pace of the past 20 years. As a result, energy is abundant – prices have come down – and the pressure is on to become more competitive at lower prices. These are profound changes that mean we need to be competitive in a way that’s different from the past.”

Five steps to a sustainable business“In previous cycles, as an industry, we

have let costs drift up when prices are high, then cut back when prices fall. From now on, the challenge is to build - and sustain - businesses that are good through all cycles. We can’t lose our discipline on costs at any time, or let capital expenditure slide out of tight control.

According to Dudley there are a number of ways the industry can prevent that happening. The first is through a constant focus on simplification, cutting out waste, improving efficiency and driving up reliability. “Safety is really important here,” he explains. “It is the result of disciplined, rigorous, systematic

working – and that approach also yields other benefits. In BP, we have seen our numbers on efficiency and reliability go up at the same time as safety has improved. They go hand-in-hand.”

The second strategy for maintaining low costs is being innovative with business models. We need to be open to new ways of working. “One recent example in BP is the deal we have done with Det Norske in Norway” Dudley continues. “We have combined the strengths of both companies in a new business called Aker BP. It will bring together Det Norske’s streamlined operating model and our technical skills, international experience and knowledge of the Norwegian offshore, built up over decades.”

Dudley’s third step is to take full advantage of the latest revolution in technology. The digital revolution is being described as the next Industrial Revolution and according to Dudley you can see why. “Things that used to take months – like the analysis of seismic data – are taking hours because of supercomputing,” he says. “That means we can find answers to problems in

seconds, with a huge impact on productivity.“Virtual reality is also taking performance

up a level at a time. We have trained crews onshore in the latest state-of-the art simulators, leading to teams drilling wells 40 per cent ahead of schedule and 40 per cent under budget in one recent project – and all drilled to the usual rigorous safety standards.”

For the fourth competitive step Dudley says that it is an area where the industry needs to be less innovative rather than more. “I’m talking about standardisation – making the most of what’s already proven to work well,” he explains. “Standardisation has huge potential to lower costs and that applies to individual components as well as procurement specs and even whole projects.”

His fifth and final strategy is the human factor where he says that relationships are more important than ever. “We need respect on all sides when negotiating costs down across the supply chain in a way that is sustainable for everyone,” he adds. “And in terms of relationships with governments, it’s a time to work together to ensure that investment continues to flow. That requires mutual trust, flexibility and contractual arrangements that share risks and rewards equitably.”

Meeting the carbon challengeEnergy is only one of the many

important sectors for the climate challenge. “But as energy companies, we have a major part to play in the transition to a lower carbon economy,” Dudley agrees. “We have a responsibility to provide more energy, because global demand is still growing. We think the most likely path says demand will be about a third bigger than today by 2035.

“And yet at the same time, we need to be reducing emissions of greenhouse gases.

Momentum for action has been growing for some time and the agreement reached in Paris at the UN climate conference could be an important milestone. We welcomed the agreement in BP. We are playing our part and we encourage governments to play their part by putting a price on carbon and encouraging lower carbon solutions.

“In BP we have been a part of the momentum for some time, and we are generally recognised as one of the first major oil and gas business to publicly acknowledge the need for action on climate change. For more than 15 years we have supported the Carbon Mitigation Initiative at Princeton University in the US which has worked hard in research into the science of climate change and potential policy solutions.

“And we have invested a substantial amount in low carbon businesses. Not everything has worked commercially, but you always gain something from experience and today we have two significant renewables businesses. One is in wind in the US and the other biofuels in Brazil. Together they add up to one of the largest operated interest in renewables among the oil and gas majors.

“We also have interests in a wide range of clean tech start-ups through our venturing activities. We’re also a member of the Oil and Gas Climate Initiative or OGCI - a collaboration between ten major oil and gas companies to lead on the development of carbon-lowering actions.”

Interview

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EnvironmentEnvironment

New technologies help tap an old resource

In Pennsylvania, Chevron is working to capture and reuse 100 per cent of the water used in producing natural gas from shale

While a Chevron drilling rig bores down 2,438m below southwestern Pennsylvania to unlock natural gas

trapped in dense shale rock, Tim Svarczkopf monitors the mobile water-treatment technology he invented. “The process takes black, viscous water that flows back after completion, combines it with production brine that is red from iron content, and turns it into crystal-clear water that looks like it comes out of a household tap,” he said.

Svarczkopf is Chevron’s manager of water technology in the region. His work is just one example of how the company is applying new technology to optimise well performance and advance environmental stewardship in its Marcellus operations and in other places where the company extracts natural gas from shale.

Chevron began producing natural gas from shale in southwestern Pennsylvania in 2011, when it acquired Atlas Energy. With more than 283,300 ha under lease in the Marcellus Shale, Chevron is one of the state’s largest leaseholders. Unlike conventionally sourced crude oil and natural gas, which have migrated toward the earth’s surface from an organic-rich source rock into highly permeable reservoir rock, natural gas forms within shale rock, whose low permeability inhibits the gas from moving upward. The energy industry has long known about huge

gas reserves trapped in these deep formations, such as the Marcellus under Pennsylvania and neighbouring states, but the complex geology has left this energy source largely beyond reach.

However, during the past decade, the combination of two established technologies, horizontal drilling and hydraulic fracturing, has dramatically altered the US energy supply picture. Natural gas from shale is the fastest-growing source of natural gas in the United States and could become a major global energy source.

The operation begins as a drilling rig sinks a vertical well more than a 1.6 km below ground. Then the well extends horizontally 610–1,524m into the shale. For each well in Pennsylvania, the process of hydraulic fracturing injects about five million gallons of pressurised water along with sand and additives to selectively crack the rock and provide a pathway for the natural gas to travel to the wellbore. This year, Chevron plans to spend millions of dollars on shale research and on technology that will improve the productivity of shale wells. “We’re working on technologies to improve well performance and find superior ways to handle and treat water, all while minimising the company’s footprint on the ground,” said Mike Maneffa, Chevron’s shale gas asset-class manager.

To improve the productivity of low-permeability reservoirs, Chevron continues to explore the use of specialised proppants and a new fracturing fluid that uses liquefied petroleum gas instead of water. To pinpoint the most promising drilling sites, the company is using seismic imaging to bounce sound waves off the underground rock. Both 2-D and 3-D seismic and microseismic technologies, along with

logging and coring data, provide a road map for how the gas can be extracted in a safe and viable way.

“As we understand these formations better, we can make sure we drill only as far as needed. Over the next few years, through technology, we’ll be able to selectively fracture with even more precision, which is expected to reduce water needs and the numbers of trucks that haul water,”

Technolgy in Action

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Technolgy in Action

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GE unlocks innovation in subsea compression and power & Gas’ Blue-CTM compressor

– a centrifugal compressor specifically designed for subsea - and the world’s first subsea power supply, transmission and distribution system. The system enables operators to conduct gas compression on the seabed, reducing the need to introduce additional power generation on nearby offshore facilities.

Sitting at the heart of the compressor is the electrical package provided by GE’s Power Conversion business and due to GE’s deep domain expertise in electrical engineering, the high-speed motor and the high-power drive provided are capable of operating hundreds of metres below the sea level reliably.

“We are very proud of what we have achieved in partnership with Shell,” Neil Saunders, president & CEO, Subsea Systems & Drilling, GE Oil & Gas, said. “We leveraged the GE Store, using our domain expertise and heritage across the GE portfolio, including rotating machinery, power electronics, high voltage designs and subsea production systems. Today, we are designing the next generation of compact and modular subsea compression systems to unlock new possibilities for power and processing worldwide”. n

Advancing the next generation in subsea compression technology

Aker Solutions and MAN Diesel & Turbo expect to cut the size and weight

of subsea compression systems by at least 50 per cent just a year after the first such system successfully went on stream at Statoil’s Asgard field.

The Asgard system, which has been running with practically no stops or interruptions in its first year, will help recover an additional 306 million barrels of oil equivalents more cost-effectively, safely and with a smaller environmental footprint than a traditional platform. Aker Solutions delivered the system in close collaboration with partners including MAN and the operator Statoil.

“We’re proud to have played

a leading part in developing this ground-breaking technology, which is proving its value as we now mark one year of strong operations since going on stream,” Hervé Valla, chief technology officer at Aker Solutions, said. “Together with MAN we’re taking this technology further to deliver slimmer and lower-cost compression systems without compromising on effectiveness.”

Aker Solutions and MAN Diesel & Turbo teamed up in October 2015 to build on their joint experience from Asgard and their extensive oil and gas industry expertise. The partnership expects to reduce the size and weight of future systems by at least half, greatly lowering

GE brings together the most advanced subsea compression and power

distribution technologies to enable innovation in subsea oil and gas production. Following an extensive, multi-year test programme of Shell’s Ormen Lange Pilot, GE Oil & Gas is proud to announce that A/S Norske Shell has successfully completed system testing of the world’s first subsea gas compression system with a full subsea power supply, transmission and distribution system that further advances the development of hydrocarbon processing on the seabed.

The Ormen Lange Pilot was a first of its kind and was designed to test a full scale integrated subsea compression system in submerged conditions with real hydrocarbons. It has been run by A/S Norske Shell and its license partners Petoro, Statoil, Dong and ExxonMobil since 2011 at Shell’s test facility at Nyhamna in Norway where the gas from the Ormen Lange field reaches shore.

GE has been a key collaboration partner with Shell in the development of the compression system and supplied several ground breaking technologies, including GE Oil

investment and installation costs. “The next generation of

subsea compression systems will be based on proven technology and contribute to major improvements in both the recovery rate and lifetime for several gas fields,” explained Basil Zweifel, head of Oil & Gas Upstream at MAN Diesel & Turbo in Zurich. “Aker Solutions and MAN will provide reliable compression systems for use at small subsea fields as well as large deposits such as Asgard.”

Compressors are used to maintain output as reservoir pressure at gas-producing fields drops over time. They are typically installed on platforms above sea level. The two 11.5 MW HOFIM™ motor-compressor-units at Asgard are the world’s first compressors to be installed and put into operation on the seabed. The technology is based on 25 years of experience with more than 100 machines in operation in gas storage and transport. n

Alpha Process Controls secures GNL Quintero LNG Transfer Project

Alpha Process Controls (APC) is improving operational continuity of

the GNL Quintero regasification terminal in Chile after securing a contract to supply the facility with its LNG Hose Transfer System with innovative Emergency Release Collar (ERC) breakaway couplings.

The UK-based division of the GT Group will deliver the complete ERC systems, consisting of liquid and vapour lines, which will be employed for emergency ship-to-shore transfer of Liquid Natural Gas (LNG) when pre-installed loading arms cannot be used.

The 8-inch ERC system features APC’s innovative two-stage emergency release cable technology that enables the controlled shutdown of internal valves before instigating a coupling separation.

Through the controlled shutdown, even at high flow rates, pressure surges are maintained to a level without compromising pipework or pumps in the event of a ship-to-shore separation caused by vessel drift-away.

Alongside the ERC couplings, APC will supply fixed and adjustable height saddles, hoses, concentric reducers and deployment equipment. In addition, to meet the requirements of their application at the terminal, the systems include a bespoke support trolley to enable the ERC couplings to be manoeuvred into position on the jetty as required and to meet vessel configurations.

The systems, which will be manufactured, tested and commissioned at APC’s facility in North East England, will be

delivered to the terminal on the Pacific coast. The regasification terminal, which has been supplying gas to central Chile since 2009, can manage 15 million cubic metres of natural gas per day and is in the process of increasing that capacity with further investments in its facility.

“The application of our 8-inch ERC systems at GNL Quintero will provide an additional LNG transfer solution to the facility, which will support continuous operations and productivity at the terminal,” John Lamb, managing director of Alpha Process Controls, said. “The innovative approach we have taken to the development of ERC breakaway couplings is gaining traction across the LNG industry and we are very proud to be working with the premier LNG terminal in the southern hemisphere.” n

FeaturesThe latest trends, technology and reports from the oil and gas industry

InterviewEach issue features an interview with a senior executive or engineer

Comment and analysisComment and analysis from high profile executives within the oil and gas sector

Business updatesStay up to date with the latest events from the business side of the industry

Innovation FocusA look at the most innovative new products and services

Technology in ActionOur round-up on how innovation is boosting productivity and overcoming technology challenges in the oil and gas industry

Events FocusThe latest news from oil and gas events around the globe

Final WordThe regular column from our editor

3

1514 Oil & Gas Technology | www.oilandgastechnology.net www.oilandgastechnology.net | Oil & Gas Technology

Oil & Gas BusinessOil & Gas Business

Do investments in oil and gas constitute systemic risk?

A new IHS Energy report disputes concerns by some central banks and

regulators that climate change may pose systemic risk to the financial system.

This view was notably articulated by Mark Carney, governor of the Bank of England, who declared in a September 2015 speech that climate change, in particular transition risk – could threaten financial stability via a sudden and significant collapse in asset values.

In response, the Financial Stability Board, which reports to the G20 governments and is chaired by Governor Carney, launched a task force to develop a climate risk disclosure framework for market participants. The task force will release its voluntary, unified guidelines for climate risk disclosure in December 2016.

A key consideration in this debate is the valuation of oil and gas reserves. In the September 2015 speech, Governor Carney cited the carbon bubble thesis,

stating that a key risk to financial stability could come from potential sharp drops in the valuation of oil, gas and coal companies, owing to stranded reserves that may never be produced.

However, IHS Energy research on oil and gas company valuations in the financial marketplace has shown that the risk of overvaluation of these companies is limited, owing to how fossil fuel reserves

cashflow from projects and reserves that will be produced in the short to medium term and are consequently at minimal risk of being stranded.

The oil price decline over the past two years has provided a real-life, high-intensity, externally driven stress test for the oil and gas sector and its potential to have any broader systemic impact, the report says.

According to IHS Herold, 82 global oil and gas companies lost 42 per cent of their market value from June 2014 to December 2015 – equal to USD1.4 trillion in market capitalisation. Yet, this fall has had minimal systemic impact on the global financial system thus far. Since oil prices fell below USD100/bbl in September 2014, the Dow Jones Index has risen six per cent.

The history of past transitions suggests that the unfolding of a lower-carbon energy economy, possibly supported by carbon capture, will also be a gradual process that can be priced in by the market over time, the report says. The energy economist Vaclav Smil, an expert on energy transitions, has noted that “even a greatly accelerated shift towards renewables would not be able to relegate fossil fuels to minority contributors to the global energy supply anytime soon, certainly not by 2050.”

Overall, the report says, any transition that unfolds over decades – as would take place with any energy transition given the extensive amount of capital invested, the long life spans of energy assets, among other factors – does not constitute abrupt systemic risk to the financial system. n

are valued and contribute to the market capitalisation of oil and gas companies.

Oil and gas company valuations are primarily based on reserves that will be produced and monetised over a 10–15-year

period – a relatively short time frame in which

an energy

transition is unlikely to

unfold. The IHS Energy

analysis also found that about 80 per cent of the

value of most publicly traded oil and gas companies is based on their proved reserves, which accounts for roughly 20 per cent of the resource base of global international oil companies by volume. Their valuation is based on the present worth of expected

GE and Baker Hughes create digital industrial services company

GE and Baker Hughes have announced that the companies have entered

an agreement to combine GE’s oil and gas business, GE Oil & Gas, and Baker Hughes to create a world-leading oilfield technology provider with a unique mix of service and equipment capabilities. The New Baker Hughes will be a leading equipment, technology and services provider in the oil and gas industry with USD32 billion of combined revenue and operations in more than 120 countries. By

drawing from GE technology expertise and Baker Hughes capabilities in oilfield services, the new company will provide best-in-class physical and digital technology solutions for customer productivity.

Under the terms of the agreement, which has been unanimously approved by the boards of directors of both companies, at the closing of the transaction Baker Hughes shareholders will receive a special one-time cash dividend of USD17.50 per share and 37.5

per cent of the new company. GE will own 62.5 per cent of the company. The transaction is expected to close in mid-2017.

“This transaction creates an industry leader, one that is ideally positioned to grow in any market,” Jeff Immelt, chairman

and chief executive officer of GE, said. “Oil & gas customers demand more productive solutions. This can only be achieved through technical innovation and service execution, the hallmarks of GE and Baker Hughes.” n

Chevron Corporation has reported earnings of USD1.3 billion (USD0.68

per share – diluted) for third quarter 2016, compared with earnings of USD2.0 billion (USD1.09 per share – diluted) in the third quarter of 2015.

Foreign currency effects increased earnings in the 2016 third quarter by USD72 million, compared with an increase of USD394 million

incurred throughout the Group and a positive one-time tax credit.

Underlying operating cashflow, which excludes pre-tax Gulf of Mexico payments, was USD4.8 billion for the quarter. It was USD13.3 billion for the first nine months of the year, benefitting from reliable operations and lower cash costs. BP announced an unchanged dividend for the quarter of 10c per ordinary share, expected to be paid in December.

“We continue to make good progress in adapting to the challenging price and margin environment,” Brian Gilvary, BP’s chief financial officer said. “We remain on track to rebalance organic cashflows next year at USD50 to USD55 a barrel, underpinned by continued strong operating reliability and momentum in resetting costs and capital spending. At the same time we are investing in the projects, businesses and options to deliver growth in the years ahead.” n

Chevron reports third quarter net income of USD1.3 billion BP has reported a profit for

the third quarter of 2016 of USD933 million on an

underlying replacement cost basis. This compares to USD720 million profit for the previous quarter and USD1.8 billion for the third quarter of 2015.

The quarter’s result was affected by a weaker price and margin environment. It was also negatively impacted by several mainly one-off and non-cash items in the upstream. However, the result also included benefits from lower cash costs being

BP announces further progress

a year earlier. Sales and other operating revenues in third quarter 2016 were USD29 billion, compared to USD33 billion in the year-ago period.

“Third quarter results, though down from a year ago, reflect an improvement from the first two quarters of this year,” chairman and CEO John Watson, said. “Our operational performance in the third quarter was strong.” n

21www.oilandgastechnology.net | Oil & Gas Technology20 Oil & Gas Technology | www.oilandgastechnology.net

Over the past several years, the global oil and gas industry has had to navigate very choppy waters; after

a prolonged run of high and growing rig counts, mega-capital-expenditure projects,

Harsh Choudhry, Azam Mohammad, Khoon Tee Tan, and Richard Ward of McKinsey explain that harnessing new technologies could boost efficiency—a mandate that’s especially important for oil and gas players globally

The next frontier for digital technologies in oil and gas

and plentiful capital to support investment, oil prices slid precipitously in 2014 and 2015. Within a matter of months, oil companies that had invested heavily based on rosy forecasts were slowing or even halting

operations.A recent price rebound has increased

optimism slightly, and efforts are under way to contain costs by reducing head count, postponing projects, and cutting spending.

Still, in the face of uncertain long-term forecasts, it is time to explore more drastic strategies to boost efficiency.

In response to recent technological advancements, oil executives should consider digital technologies with the potential to transform operations and create additional profits from existing capacity. Our research finds that the effective use of digital technologies in the oil and gas sector could reduce capital expenditures by up to 20 per cent; it could cut operating costs in upstream by three to five per cent and by about half that in downstream.

Oil and gas companies were pioneers of the first digital age in the 1980s and 1990s. Long before phrases such as big data, advanced analytics, and the Internet of Things became popular, oil executives were making use of 3-D seismic, linear program modelling of refineries, and advanced process control for operations. The use of such technologies unleashed new hydrocarbon resources and delivered operational efficiencies across the value chain.

Thanks to the latest technological advancements, we are now poised for a second digital age that could further reduce costs, unleash unparalleled productivity, and boost performance significantly, if executives can harness the right technologies to support their business strategy. Making better use of existing technology can deliver serious returns: up to USD1 billion in cost savings or production increases.

Executives that make their organisations more digital will be well positioned to pursue new growth opportunities. The oil and gas industry is tailor-made for this transformation: operations typically span multiple regions, with heavy capital investments and extended supply chains. The visibility and clarity delivered by digital technologies and advanced analytics can give executives unprecedented, granular views into operations, increase agility, and support

better strategic decision making. Digital enablers, from process digitisation to robotics and automation, can also help realise this potential by supporting processes in dynamic ways.

Many oil and gas companies are beginning to harness these enablers to drive better performance. To calculate the potential impact of digital technologies, McKinsey conducted research on more than 100 use cases at oil and gas companies and identified three categories for the application of digital technologies:

Operations of the future. While advanced analytics are being used

to transform functions such as procurement and to support better decision making, the latest technologies, such as drones and equipment sensors, are also revolutionising monitoring and maintenance. The potential impact of using advanced analytics for

predictive maintenance is a decrease in maintenance costs of up to 13 per cent. At one company, where maintenance costs accounted for 25 per cent of operating expenses, this enabled pre-emptive equipment maintenance, in effect, vital equipment could be repaired before it broke down. This effort reduced costs by up to 27 per cent while increasing reliability and uptime. Advanced analytics for energy and yield also has the potential to increase energy efficiency by as much as 10 per cent.

Reservoir limits. By integrating digital applications,

companies have been able to increase their reservoir limits significantly, resulting in a decrease of up to 20 per cent in upstream and downstream capital expenditures, in addition to ancillary benefits. Some companies

have begun using 4-D seismic imaging to add a time-lapse dimension to traditional 3-D imaging, enabling them to measure and predict fluid changes in reservoirs. This enhanced view of reservoirs typically increases the recovery rate by as much as 40 per cent, boosting upstream revenue by up to five per cent.

Digital-enabled marketing and distribution. Retailers in other industries have

implemented digital technologies to gain a better understanding of consumer habits and preferences, optimise pricing models, and manage supply chains more efficiently. Oil companies are applying these same methods, with impressive results, potentially increasing revenue by up to 1.2 per cent. By using geospatial analytics, for example, executives are increasing the efficiency of their supply and distribution networks through location planning and route optimisation. Collectively,

efforts in this category have lowered costs by up to 10 per cent and increased revenue by three per cent.

With the current oil and gas market, companies need to reinvent themselves to improve productivity. While capital expenditures or acquisitions might give executives pause, investing in digital technologies is a no-regrets move that could increase production from existing operations. Since these technologies are readily available and have proved their value in the form of reduced operating costs, increased efficiency, and revenue generation, oil companies should move quickly to embrace digital. It could be the difference between leading the next wave of industry innovation and being left behind. n

Harsh Choudhry is a consultant in McKinsey’s Singapore office, where Azam Mohammad is a partner; Khoon Tee Tan is

a partner in the Jakarta office; and Richard Ward is a senior expert in the Houston office.

Many oil and gas companies are beginning to harness these enablers to

drive better performance

Analysis Analysis

Innovation Focus

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Innovation Focus

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Maximise wellbore coverage to increase production

Schlumberger has announced the launch of OpenPath Sequence diversion

stimulation service. The new service sequentially diverts acid into additional clusters or zones to maximise wellbore coverage, resulting in more precise treatment placement and greater production when compared with conventional methods.

OpenPath Sequence service is the first in the industry to use degradable fibres to suspend multimodal particles that enable sequential stimulation of intervals in acid stimulations. Suitable

for both cased and openhole completions, the service can be used for acid fracturing or matrix stimulations in carbonate reservoirs. The service is also suited for restimulation treatments in mature fields.

“With acid stimulations, it is often challenging to achieve the wellbore coverage needed to optimise recovery,” said Amir Nessim, president, well services, Schlumberger. “Often, mechanical isolation is not a feasible option due to operational constraints. OpenPath Sequence service

provides reliable, accurate zonal coverage with the added benefit of more streamlined operations for both cased and openhole completions.”

This acid diversion stimulation service has been tested in reservoirs in the Middle East and in North America, resulting in proven diversion and significantly improved production.

In the Middle East, a customer wanted to stimulate two separate zones with multiple clusters in a vertical well. Effective diversion using OpenPath Sequence service

was indicated by an increase in diversion pressure and confirmed by injection logs. In addition, the productivity index improved by more than 300 per cent with an increase in production to 1,200 bbl/d from 350 bbl/d.

In the Permian Basin, a customer needed to bring a vertical injector well with a 1,000-ft-interval and multiple perforation clusters back into production. After OpenPath Sequence service was used to treat the laminated carbonate formation, tracers confirmed diversion between stages as well as the stimulation of all perforated intervals. After the operation, the initial fluid production of the well was 600 bbl/d, exceeding operator expectations. n

Subsea smart wireless crack monitoring reduces inspection costs

WFS Technologies and TSC have launched Seatooth ACFM, a

wireless smart NDT monitoring solution designed to reduce subsea inspection costs.

TSC‘s ACFM array probe is a well-established tool that can be installed on offshore structures to monitor the growth of surface breaking cracks. Seatooth is an established subsea wireless communications system that

provides reliable communications through seawater and through the splash zone. Seatooth is immune to biofouling, surface noise and turbidity.

Combining the technologies together, ‘Seatooth ACFM’ is a non-intrusive, easy to deploy wireless network solution which can be retro-fitted to offshore structures and subsea assets. Seatooth ACFM units are user-configured to take readings as

required, from once a minute to once per month.

Seatooth ACFM can be configured as standalone sensors or within subsea wireless networks. As standalone devices, information is harvested by fly-by ROV or a diver. When configured as a wireless network on offshore platforms, real-time data is streamed wirelessly through the splash zone to an asset management control station located either on the platform or on shore.

Seatooth ACFM systems come with an internal battery pack to support between five and 15 years of operation and

are installed by light-class ROV deployed off platforms.

“The ability to easily install the sensors to monitor aging assets means that the benefits of ACFM technology can now be offered even in the most challenging of environments. The ACFM technique has received approvals from various organisations including DNV, Bureau Veritas, Lloyds Register and ABS. Standard practice documents covering ACFM have been issued by ASTM (E2261-03), ASME V and COFREND,” said David Parramore, TSC’s engineering and operations director. n

Next generation of fluids separation technologies

Baker Hughes has announced the commercial release of its

Tretolite Snap fluids separation technologies, designed to help oil and gas operators maintain dry oil and good water quality, while also stabilising operations and reducing costs, without limiting production, to improve overall profitability. This next generation of chemical solutions includes water clarification and demulsification technologies that deliver improved performance in multiple production applications, including steam-assisted gravity drainage (SAGD) facilities, as well as conventional and other unconventional onshore and offshore fields.

For SAGD producers, fluids separation is vital to the success of their operations because the recovered water must be clean enough to reuse in the thermal recovery process. The water is used to generate steam for injection into the well to heat

the extremely heavy oil. These operators often are forced to compromise profitability to get in-spec oil and good quality water. The technologies help minimises oil-in-water (OIW) levels to improve water quality for reuse, reducing heat exchanger fouling and related equipment cleanout expenses. The new products also help lower basic sediment and water (BS&W) content in the oil to decrease recycling and slop oil trucking, which translates into additional operational efficiencies and cost savings. It enables SAGD producers

Integrating modelling with monitoring and control to optimise productivity

to increase profitability by getting a more controlled oil/water interface that improves production volumes and throughput capacity.

Operators also experience oil and water separation challenges in other unconventional and conventional onshore and offshore applications where they are required to meet regulatory specifications for both in-spec oil and water disposal/discharge. They help to more efficiently lower OIW and BS&W levels to ensure regulatory compliance and to minimise oil losses due to high OIW content. Operators may also attain a tighter oil/water interface with these new products, which helps reduce slop oil production and improve overall oil and water separation. n

Schlumberger has introduced AvantGuard advanced flowback services. These

services protect the connection of the hydraulic fracture to the wellbore to optimise

productivity in conventional and unconventional wells.

AvantGuard services comprise flowback design and proactive fracture protection that complement fracturing

operations. Damage to the well and the formation is actively prevented by tailoring a predictive flowback design strategy with a defined secure operating envelope. Application of the flowback design during the transition to production protects and stabilises hydraulic fractures to efficiently enable all the clusters in each zone to produce without productivity impairment.

“Optimising the poststimulation flowback of hydraulically fractured wells is a significant challenge for our industry,” said Wallace Pescarini, president, Testing Services, Schlumberger. “Protecting the investment made in a complex multistage stimulation operation is a must in today’s cost-constrained environment, and AvantGuard services provide the integrated flowback solution that delivers productivity and recovery.”

Modelling is conducted in the Flowback Advisor design model built on Mangrove engineered stimulation design. The AvantGuard model is adapted to the well’s specific geological, geochemical and geomechanical environment. The resulting flow is continuously monitored using Vx multiphase well testing technology to accurately capture the rapid transient changes of produced fluids and sand content during early flow in the life of the well. This level of control begins during coiled tubing millout as the dynamic fluid and solids rate information is transmitted in real time to the coiled tubing unit to guide managing injection, return rate and pressure and optimize the balance condition. n

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Submission deadline – 24th Nov Technology: Automation/AI/RoboticsSpecial Report: PipelineSector Report: GasFocus: Deepwater Tanks & StorageCorrosionRegional Reports: Latin America

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Submission deadline – 10th May Technology: Automation advancesSpecial Report: Offshore operations Sector Report: LNGFocus: Subsea innovation Research & Development CommunicationsRegional Report: North Sea

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Submission deadline – 14th February Technology: DrillingSpecial Report: OffshoreSector Report: Refining & Processing Focus: SubseaFuture of Oil & Gas Unconventional resources DecommissioningRegional Report: North America

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- Promote your company for profiling or branding, product launches or the product catalogue overall, company news or trade event activities, success stories, new office, service centre or factory openings, job openings, invite recipients to seminars or special events etc.

- Content is set by you and the message you want to get across at the specified time

Cost for standard package: GBP £500 per 1000 recipients. Minimum order £1500. There may be higher costs associated with specific requests.

Translation can be provided if you want to reach a specific country/region only at GBP£70 per HTML

DATA AVAILABILITY

Middle East 4300

Latin America 5,500

Brazil 4,500

Russia/CIS 7,500

China 11,000

Rest of World 17,000

NAMES CAN BE SEGMENTED INTO THE FOLLOWING FUNCTIONS:

Executive Management

Engineering Management

Operations Management

Geology / Geophysics Management

Exploration Management

Purchasing

Consulting

CIRCULATION AND TARGETED DIRECT E-MAIL

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CONTACTS

Editorial

Mark Venables- Editor-in-Chief

[email protected]

Publishing & Commercial

Kay Becker - Group Sales Director

[email protected]

www.oilandgastechnology.netwww.oilandgastechnology.net/demomediawww.futureoilgas.com www.cavendishgroup.co.uk