Towards Implementing Condition-Based Maintenance (CBM) Policy for Offshore Blowout Preventer (BOP) System

2019 ◽  
Author(s):  
Tobiloba Elusakin ◽  
Mahmood Shafiee ◽  
Tosin Adedipe
Keyword(s):  
Oil And Gas ◽  
Cost Savings ◽  
Oil And Gas Industry ◽  
Condition Based Maintenance ◽  
Gas Industry ◽  
Training Requirements ◽  
Blowout Preventer ◽  
Integrity Management ◽  
Maintenance Personnel ◽  
Oil And Gas Companies

Abstract With the steadily growing demand for energy in the world, oil and gas companies are finding themselves facing increasing capital and operating costs. To ensure the economic viability of investments and improve the safety of operations, oil and gas companies are promoting their asset integrity management (AIM) systems. In the past, the oil and gas industry adopted reactive maintenance regimes, which involved recertification, testing and repair of faulty equipment while trying to achieve minimum downtime. As technology becomes more affordable, operators have been able to carry out improved fault diagnosis, prognosis and maintenance optimisation. As a result of this, condition-based maintenance (CBM) is being adopted more and more as the preeminent maintenance regime for oil and gas equipment. The blowout preventer (BOP) is one of the most expensive and safety critical drilling equipment in the oil and gas industry. However, there have been very few studies and best practices about how to develop a CBM policy and what specific monitoring techniques and devices will be required to implement it for the BOP system. This paper proposes a V-model based architecture for designing a CBM policy in BOP systems. As a result of the model proposed, gaps in implementation are identified and all the hardware, software and training requirements for implementing the CBM solution in BOP systems will be outlined in detail. Our proposed CBM framework will help BOP operators and maintenance personnel make cost savings through less repairs and replacements and minimal downtime.

EBITDA and DACF multipliers as an indicator of investment attractiveness of domestic vertically integrated companies

2021 ◽  
Vol 20 (4) ◽  
pp. 718-752
Author(s):  
Oleg V. SHIMKO
Keyword(s):  
Oil And Gas ◽  
Stock Exchange ◽  
Oil And Gas Industry ◽  
Financial Economic ◽  
Consolidated Financial Statements ◽  
Gas Industry ◽  
Debt Burden ◽  
Fixed Assets ◽  
Settlement Agreements ◽  
Oil And Gas Companies

Subject. The article addresses the EV/EBITDA and EV/DACF ratios of the twenty five largest public oil and gas corporations from 2008 to 2018. Objectives. The purpose is to identify key trends in the value of EV/EBITDA and EV/DACF ratios of biggest public oil and gas corporations, determine factors resulted in the changes over the studied period, and establish the applicability of these multipliers for assessing the business value within the industry. Methods. I apply methods of comparative and financial-economic analysis, and generalization of consolidated financial statements data. Results. The study revealed that EV/EBITDA and EV/DACF multiples are acceptable for valuing oil and gas companies. The EV level depends on profitability, proved reserves, and a country factor. It is required to adjust EBITDA for information on impairment, revaluation and write-off for assets that are reported separately from depreciation, depletion and amortization costs, as well as for income or expenses arising after the sale of fixed assets and as a result of effective court decisions or settlement agreements. It is advisable to adjust DACF for income, expenses and changes in assets and liabilities, which are caused by events that are unusual for oil and gas companies. Conclusions. The application of EV/EBITDA and EV/DACF multiples requires a detailed analysis and, if necessary, adjustments of their constituent components. However, they are quite relevant in the context of declining profitability and growing debt burden in the stock exchange sector of the global oil and gas industry.

Subsea Cable Stability on Rocky Seabeds: Comparison of Field Observations Against Conventional and Novel Design Methods

2018 ◽  
Author(s):  
Terry Griffiths ◽  
Scott Draper ◽  
Liang Cheng ◽  
Feifei Tong ◽  
Antonino Fogliani ◽  
...  
Keyword(s):  
Oil And Gas ◽  
Power Transmission ◽  
Small Diameter ◽  
Oil And Gas Industry ◽  
Operational Reliability ◽  
Design Methods ◽  
Gas Industry ◽  
Integrity Management ◽  
Tidal Stream ◽  
Almost All

As offshore renewable energy projects progress from concept demonstration to commercial-scale developments there is a need for improved approaches beyond conventional cable engineering design methods that have evolved from larger diameter pipelines for the oil and gas industry. New approaches are needed to capture the relevant physics for small diameter cables on rocky seabeds to reduce the costs and risks of power transmission and increase operational reliability. This paper reports on subsea cables that MeyGen installed for Phase 1a of the Pentland Firth Inner Sound tidal stream energy project. These cables are located on rocky seabeds in an area where severe metocean conditions occur. ROV field observation of these cables shows them to be stable on the seabed with little or no movement occurring over almost all of the cable routes, despite conventional engineering methods predicting significant dynamic movement. We cite recent research undertaken by the University of Western Australia (UWA) to more accurately assess the hydrodynamic forces and geotechnical interaction of cables on rocky seabeds. We quantify the conformity between the cables and the undulating rocky seabed, and the distributions of cable-seabed contact and spanning via simulations of the centimetric-scale seabed bathymetry. This analysis leads to calculated profiles of lift, drag and seabed friction along the cable, which show that all of these load and reaction components are modelled in an over-conservative way by conventional pipeline engineering techniques. Overall, our analysis highlights that current cable stability design can be unnecessarily conservative on rocky seabeds. Our work foreshadows a new design approach that offers more efficient cable design to reduce project capex and enhance through-life integrity management.

Assessment of Conflict Management in Niger Delta and Implications for Sustainable Development of Oil and Gas in Nigeria

2021 ◽  
Author(s):  
Humphrey Otombosoba Oruwari
Keyword(s):  
Conflict Management ◽  
Niger Delta ◽  
Oil And Gas ◽  
Ecological Factors ◽  
Oil And Gas Industry ◽  
Negative Effects ◽  
Gas Industry ◽  
Secondary Sources ◽  
Positive Elements ◽  
Oil And Gas Companies

Abstract Nigerian oil and gas industry have over the years witnessed incessant conflicts between the stakeholders, particularly the host communities in Niger Delta region and the oil and gas companies in partnership with the Federal Government. Conflict which is here defined as manifestation of disagreement between individual and groups arising from differing and mutually incompatible interests has both positive and negative effects depending on how it was managed. Managing conflicts is all about limiting the negative aspects. The study examined conflicts management in Nigeria oil and gas industry and how best the positive elements of conflicts can be maximally exploited for the mutual benefit of both oil and gas company and the host communities in Niger Delta. The study adopted the multidisciplinary approach, literature review, case study and relied on secondary sources using analytical method of data analysis. The study findings revealed that the major factors that precipitate conflicts between the oil and gas industry and host communities in Niger Delta include economic, social, political, and ecological factors. There are available strategies that can be used in conflict management. These include avoiding, accommodating, or smoothing, competing, or forcing, compromising, and collaborating. Any of these strategies can be used to manage conflict depending on the situation, the environment factor, and the nature of the conflict. The problem is that the oil and gas companies in partnership with the Nigerian government often adopted the wrong approach in dealing with the conflict with host communities, using avoiding or forcing strategies. The study recommends collaboration strategy which ensues long term-term solution to mutual benefits.

Applying asset-and equity-based multipliers in the valuation of oil and gas corporations

2021 ◽  
Vol 27 (1) ◽  
pp. 129-167
Author(s):  
Oleg V. SHIMKO
Keyword(s):  
Oil And Gas ◽  
Stock Exchange ◽  
Balance Sheet ◽  
Oil And Gas Industry ◽  
Comparative Approach ◽  
Consolidated Financial Statements ◽  
Gas Industry ◽  
Market Capitalization ◽  
Economic Analyses ◽  
Oil And Gas Companies

Subject. This article explores the ratios of the company's market capitalization and value to the balance sheet value of assets and equity of the twenty five leading public oil and gas companies between 2008 and 2018. Objectives. The article aims to identify key trends in the changes in market capitalization and value ratios of the company to the balance sheet value of assets and equity of the largest public oil and gas companies, identify the factors that have caused these changes, and establish the applicability of these multipliers to estimate the value of the business within the oil and gas industry. Methods. For the study, I used comparative, and financial and economic analyses, and generalization of materials of the companies' consolidated financial statements. Results. The article establishes that the multipliers studied are acceptable for assessing the value of oil and gas companies, but it is preferable to use asset-based ratios. Conclusions and Relevance. The overall decline in profitability and the increase in debt load in the stock exchange sector of the global oil and gas industry should be taken into account when using multipliers based on assets and shareholder capital in the assessment of the value of oil and gas corporations through a comparative approach. The results of the study can be used to assess the possible value of oil and gas assets as part of a comparative approach and develop measures to increase the market capitalization of public oil and gas companies.

The Impact of News on the MICEX Oil & Gas Index: Textual Analysis

2018 ◽  
Vol 2018 (4) ◽  
pp. 79-99
Author(s):  
Elena Fedorova ◽  
Oleg Rogov ◽  
Valery Klyuchnikov
Keyword(s):  
Oil And Gas ◽  
Pearson Correlation ◽  
Oil And Gas Industry ◽  
Stock Index ◽  
Gas Industry ◽  
Negative News ◽  
The Russian Federation ◽  
Oil And Gas Companies ◽  
The Impact ◽  
Oil Gas

In this study, a relationship between the mood of news and the response of the oil and gas industry index of the Russian Federation was revealed. The empirical base of the study included 8.5 million news from foreign sources. Research methodology: fuzzy sets, naive Bayesian classifier, Pearson correlation coefficient. As a result of the research, it was discovered that: 1) negative news affects the stronger than the positive on the stock index; 2) news on companies affect the value of the index, and news on the industry affect the volume of trading; 3) the sanctions did not significantly affect the coverage of Russian oil and gas companies.

scholarly journals The Factors Affecting Behaviour Based Safety (BBS) Implementation in Oil and Gas Industry

2018 ◽  
Vol 7 (3.11) ◽  
pp. 157
Author(s):  
Amanda Antonio Galis ◽  
Norfashiha Hashim ◽  
Faridah Ismail ◽  
Norazian Mohd Yusuwan
Keyword(s):  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Top Management ◽  
Organizational Safety ◽  
Gas Industry ◽  
Factors Affecting ◽  
Management Level ◽  
Management Commitment ◽  
Top Management Commitment ◽  
Oil And Gas Companies

The application of Behaviour-Based Safety (BBS) in the oil and gas industry is facing a severe challenge that safety performance may decline when BBS intervention is removed, due to the dynamic and transitory nature of working area and workforce. This research investigates the factors affecting the implementation of Behaviour-Based Safety (BBS) approach in Oil and Gas Industry. Seven oil and gas companies practicing BBS had been chosen for case study. These companies has been implementing BBS as part of the safety exercise from 2 to 20 years. The findings show that implementation of BBS started by the request from the client. Seven challenges of implementation BBS emerged during the interview that is data management, top management commitment, employee acceptance towards program, organizational safety culture and financial barrier. While, the factor that influences the implementation of BBS is the organization commitment, top management level, training and understanding of workers toward BBS are the factors that affect the implementation of BBS in oil and gas industries.  

Research shows oil and gas companies could do far more to help female expatriates to mobilize dual-career strategies

2020 ◽  
Vol 28 (6) ◽  
pp. 21-23
Keyword(s):  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Dual Career ◽  
Heterosexual Relationships ◽  
Strategic Choices ◽  
Gas Industry ◽  
Content Type ◽  
Employment Conditions ◽  
Career Strategies ◽  
Oil And Gas Companies

Purpose The purpose of this study is to examine how female expatriates mobilize couples’ dual-career coordination strategic choices to achieve their own and their partners’ desired career goals. Design/methodology/approach The researcher initially contacted 45 expatriate women in heterosexual relationships by email. More detailed interviews were done verbally with 20 of the women. The participants were asked to explain what actions they had taken, and also the effectiveness of any employer support, to maintain two successful careers Findings The women working were often angry and disappointed with their organizations’ lack of support for their dual career strategies. They adopted strategies of their own to further mutual careers while keeping relationships on track. One is to work with their organizations to secure favorable employment conditions that minimize periods of separation and, if possible, facilitate suitable employment for their partners. A second strategy is to develop personal tactics of cooperation and coordination Originality/value The results are a demonstration to the oil and gas industry that they need to do more to support dual career couples, or they will lose out on a lot of talent.

How to avoid aches and pains in your joint ventures

2016 ◽  
Vol 56 (2) ◽  
pp. 559
Author(s):  
Brent Steedman
Keyword(s):  
Joint Ventures ◽  
Joint Venture ◽  
Oil And Gas ◽  
Cost Savings ◽  
Oil And Gas Industry ◽  
Capital Allocation ◽  
Operating Efficiency ◽  
Global Business ◽  
Gas Industry ◽  
The Right

The Australian oil and gas industry is in a period of substantial challenges, including a significant decline in oil prices, fluctuating spot gas prices, a relentless drive for operating efficiency, and tight capital allocation, together with increased regulatory scrutiny and a reputation for below-standards productivity. On the upside, these market challenges provide significant opportunities for companies to bring in new investors, implement new operating models, apply innovation to update processes and practices, and restructure activities. Making material step-changes, requires companies to review, amend, and update joint venture operating agreements (JVOAs). KPMG has worked with many of Australia’s leading oil and gas companies on a range of joint venture engagements. This extended abstract outlines why JVOAs need to be reviewed with respect to the following key opportunities and challenges: Fast-changing global business operating models. Available cost savings by eliminating inconsistent management and operating models between joint ventures. Planning for potential restructuring, including separation of infrastructure (e.g. plants, pipelines, support) from reserve ownership. Sharing of services (e.g. maintenance and logistics) between unrelated joint ventures. Transparency of costs and asset performance. Improved joint venture governance (not more or over-governance) between participants to attract investment. Effective resourcing, noting the right transition of capabilities between deal-makers and joint venture operators. With this extended abstract the authors aim to provide ideas for consideration. Each of these ideas will impact JVOAs. The authors’ proposition is that now is the right time to complete a comprehensive review of JVOAs to enable organisations to move fast as new and innovative opportunities arise.

Social licence has changed. It is time to build trust with society using the tools of today

2019 ◽  
Vol 59 (2) ◽  
pp. 615 ◽  
Author(s):  
Amber Johnston-Billings ◽  
Louise Pogmore ◽  
Mike Kaiser
Keyword(s):  
Social Media ◽  
Local Community ◽  
Oil And Gas ◽  
Local Level ◽  
Oil And Gas Industry ◽  
Investment Strategy ◽  
Gas Industry ◽  
Global Issues ◽  
Time To Build ◽  
Oil And Gas Companies

International oil and gas companies have poured significant resources into building social licence since the 1990s. Despite this extensive effort at a local community level adjacent to operations, social licence has not been consistently gained and broad-based community trust in the industry is lacking. This paper argues that social licence has not been achieved globally, because oil and gas companies have failed to respond directly and appropriately to the concerns of all stakeholders. We argue that while international oil and gas companies have largely been successful in achieving and communicating the benefits they bring at a local level, in terms of royalties, local community investment, jobs and even in environmental credentials, they have not achieved social licence because it is no longer granted by only local communities. It extends to a potentially more powerful group of largely urban dwelling broader society, enabled by technology, especially social media. A new way of communicating and operating is required if oil and gas companies want to avoid the loss of social licence in future. This article contends three distinct opportunities to strengthen social licence in today’s context: 1. Understand and use social media to proactively address the concerns of all of your stakeholders. This includes responding to societal and global issues, which no longer centre on the ‘jobs, taxes and philanthropy’ dialogue that has been the mainstay of oil and gas industry communications; 2. Stress the role gas has as an enabler of renewable energy development and penetration; and 3. Review your investment strategy in light of the scientific reality of climate change. To gain social licence in future, action will be required to follow the lead of some fossil fuel majors who have already moved to build a new world, decarbonised portfolio of the future.

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