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Tagged in: Untagged	Nov 12, 2011
Posted by: admin SUBSEA SECTOR BUCKS THE ECONOMIC TREND

In amongst all the doom and gloom and AAA credit rating reductions of the global economic crisis, there are few industries that are growing, and even fewer that are looking to employ staff in these times of frugality.

But one that is is subsea and drilling technology, as companies attempt to find oil and gas sources in the depths of oceans, with BP. Petrobras and Aker Solutions leading the way in looking to recruit staff from engineers to commercial divers.

However a lack of skilled workers is proving to be a real problem for these companies.

In July, BP announce plans to invest up to £3bn to redevelop two oil fields in the North Sea, hopefully creating hundreds of jobs, but they have been struggling to fill these positions. Trevor Garlick, head of BP’s North Sea Operations was quoted as saying “Getting hold of the right people is a real issue for us.” As a centre for recruiting elsewhere within the BP network worldwide, the BP’s North Sea operation is seen within the company as a good training ground for promotion around the world, but a lack of quality candidates is causing problems.

Petrobras’ 2011-2015 Business Plan, looking at the growing global demand for energy, notably oil, and new - and promising - discoveries made in Brazilian fields, has budgeted total investments of $224.7 billion encompassing a total of 688 projects. And will need staff to fulfill those projects.

Oilfield engineering group Aker Solutions is looking to create 500 jobs, with 300 in Aberdeen and 200 in west London, after a 19% rise in orders, especially in subsea and drilling technology.

And, according to The Underwater Centre, the subsea training provider based in Fort William, more than 2,200 commercial divers will be needed to help build and develop the European offshore wind sector as it ‘rapidly expands’. A recent study by energy analysts Douglas Westwood discovered ‘the integral role that commercial divers will play across the offshore wind farm sector’.

Subsea UK, the British subsea industry body, has indicated that there is a growing need for skills right across the industry sector. Recently departed Chief Executive Alistair Birnie commented: “We cannot rely on our existing pool of resources to support the massive growth rate (in the subsea sector) and the only way we will succeed is if we invest in the right skills at the right time. (Divers) is one of the pressure areas which also includes skills such as engineers and technicians. Attracting new blood into the industry… is essential if we are to address the demand for skills now and in the future.”

With a pool of talent available in the latest batch of University graduates, the problem may well be in attracting these talented individuals into the subsea world as it expands and grows, but for now the sector will have to depend on its current workforce to fill the gap – a gap that needs to be filled.
Still, the rise in subsea operations is good news for companies like Concept Steels, specialists in subsea forgings, where concentration on quality in both material and construction is paramount and precision imperative.
From F65 forged rings to company requirements with specific mechanical properties and 40” forged blocs in LF2 to hangers in low alloy steel A182 F22 with high impact, all delivered within a client-agreed timeframe, Concept Steels work with many clients in the petrochemical, subsea, Offshore, power generation, rail and engineering industry sectors to meet demands for value and high quality in both product and service. In fact, Concept Steels have recently qualified to supply Duplex & Super Duplex machined & forged components to NORSOK standard – proof, if proof were needed, of their dedication to detail and quality..

Tagged in: Untagged	Jul 12, 2011
Posted by: admin WILL YOUR SUBSEA PROJECT BE A SUCCESS?

WILL YOUR SUBSEA PROJECT BE A SUCCESS?

Probably not, according to Ed Merrow.

At OTC 2011, Ed Merrow, founder and CEO of Independent Project Analysis, delivered a keynote speech where reality struck home for many companies involved in offshore and deepwater projects.

Although many don’t want to hear about it, as projects get bigger and bigger and timescales get shorter and shorter, the problems inherent in execution and time management raise their heads above the parapet and Mr Merrow once again, as in previous years, produced data to make even the most ardent company executive and shareholder take a sharp intake of breath.

A recognised expert in the development and execution of these megaprojects with an expertise built on years of research, and author of the book 'Industrial Megaprojects: Concepts, Strategies and Practices for Success', Mr Merrow told his audience that, according to IPA figures, only 22% of upstream megaprojects (with a capex of over $1bn) could be called a success.

Of the remaining 78%, over a third have over-run costs of around 140% of the original budget and around 30% schedule slippages. Even worse, 64% fail to hit their forecast targets in the first two years - double that of other industry sectors.

Now that is some serious money - and a serious decline from 2003 when 50% were hitting the market.

Merrow focussed on three reasons for these failures: Aggressive schedules, turnover of project directors during the projects and a lack of ‘front-end’ loading features. He also pointed out that these ‘failures’ were more prevalent in larger companies where team integration is generally resisted in comparison to smaller ones.

Obviously, figures can be made to say anything, and in this case there are two majorly overdue projects that help drag the results down towards the seabed.

Petrobas’ Cascade/Chinook project in the Gulf of Mexico was supposed to be bring oil to the world mid-2010 as well as BP’s Greater Plutonio (Block 18) project in Angola that has 5 wells shut in at an estimated production loss to date of $450mn; figures that would push any results down.

But it still highlights the fact that Ed Merrow is speaking the unspeakable. In exploring results of over 100 megaprojects undertaken by the subsea industry in the last 15 years, he asked whether the difficulty of the project at the outcome was the reason for these ‘failures’ or whether it was the practices followed during. This raised many questions about how projects are managed, both prior to commencement and during and also many questions about quality of product and quality of service.

As timescales are shortened, and budgets restricted, the pressure is on project managers and directors to get the very best from what they have, and companies and suppliers that can deliver quality in both will survive. Attention to detail and anticipation of the unexpected is key, along with a product created in material to withstand the rigours of subsea standards.