ICR Integrity’s chief executive, Jim Beveridge, looks to keep the firm “relevant” by looking to the energy transition.
“I strongly believe that as a business standing still is not an option,” he told Energy Voice.
“The energy transition is moving at a rapid pace, and you really need to be part of that solution rather than perceived to be part of the problem.”
The ICR chief executive believes in moving with the times as the energy sector, along with the rest of the world, looks to reduce emissions and reach net zero goals.
Mr Beveridge explains the importance of evolving and not becoming “a Kodak and don’t change, then you can lose market position.”
He explains: “I’m genuinely passionate about trying to make this business sustainable in the long term, to create jobs that are going to be lasting and meaningful and being part of the energy transition.”
From ambition to action
Ambitions of supporting the energy transition are a great thing, however, it is action that will see the industry reach emissions goals. ICR understand this and has developed products to help reduce the North Sea’s impact on the environment.
The north-east firm is producing “Greener resins”; working with Robert Gordon University, ICR has produced a product that is 30% plant-based.
This development reduces the emissions created during the firm’s manufacturing process.
The company boss said that all his business’s products are being “approved by Lloyds so that we’ve got proper third-party accreditation for what we’re saying that we’re doing.”
ICR Integrity has a base in Bridge of Don, Aberdeen
ICR has also developed a ‘Technowrap’ composite repair which can offer a client a 66% saving in carbon by opting for this over a conventional welded type, according to Mr Beveridge.
“Our Quickflange product offers a 40% reduction between a conventional welded defect repair and the cold work one,” Beveridge added.
This patented tool enables the firm to provide pipeline repair without the use of welding. The process involves locating the source of a leak, cutting the area out and sliding a modified standard flange over the pipe end.
From there the firm’s Quickflange connector will then be attached to the pipe end where the cone of the tool extends allowing the segments to warp into the groves of the flange.
The tool is then reversed, finishing the installation and creating a gas-tight seal.
Not leaving oil and gas in the lurch
The development of greener technologies to reduce the carbon footprint of both its own manufacturing and the emissions created by its customers is important to ICR and its boss, however, Mr Beveridge made it clear “We’re not exiting hydrocarbons. I just want to be seen to be part of a solution.”
He said that when he took over last year 85% of business was coming from oil and gas “I’m trying to take the business into maybe a more 60-40% basis,” the boss explained.
The chief executive says that he would like to be sitting close to this goal within three years.
That being said, Mr Beveridge returned to the point of not turning his back on oil and gas, explaining: “I’m not going to give up the opportunities that exist in existing markets.”
Jim Beveridge says that his ambition to increase the representation of renewables customers in the list of ICR’s clients was welcomed by the team.
He said: “It’s a team that drives change, I can steer the ship and point us in the direction, but it’s a team that ultimately goes and delivers that.
“The message has been sold to the team about what this means for the business.
“We’re creating a long-term sustainable business where the synergies are for how we operate in efficiency and then how we can look cross-sell our products across what would have been those defined service lines.”
Who is Jim Beveridge?
The ICR boss took over the engineering firm in April 2022 after leavening Wood following almost 19 years of service.
His most recent role with Wood saw him stationed in Brunei where he assumed the role of senior vice president for Asia Pacific Central.
He has also worked in roles where he was responsible for operations in Africa, and he held a business manager position while based in Aberdeen.
Mr Beveridge explains that due to his previous positions at he has “a large international footprint” and when he got the top job at ICR, this was something the firm was looking for.
“They were looking for someone who could support further in the internationalisation of this business.”
The ICR boss added that throughout his tenure, he looks to ensure that his brand remains relevant throughout the transition and grasp the opportunities coming from “future markets.”
To read the article on Energy Voice, click here
In a remarkable display of determination and compassion, a group of dedicated colleagues from ICR, comprising, Katie Francis- HR Director, Robyn Scott – HR Advisor Alannah Dias – HR Coordinator, Lesley Hamilton – Financial Controller, Jing Zhou – Senior Accountant, and their supportive friends, successfully completed the 17.8-mile ‘Mighty Stride’ Kiltwalk at the weekend. The team’s journey began at Duthie Park in Aberdeen, along the scenic Deeside railway line, and culminated at Bellfield Park in Banchory. Their commitment and determination was in support of The British Heart Foundation (BHF), the chosen charity partner for ICR for 2022-23.
The Kiltwalk event, provided an ideal platform for the team to make a tangible difference. As the final fundraising event on behalf of the BHF, the occasion particularly poignant as it was dedicated to the memory of our colleague, Gary McVicar. Moreover, the team’s efforts aimed to extend heartfelt support to all those affected by the loss or illness of individuals battling heart problems.
Katie Francis, HR Director, commented: “We were delighted to participate in the Kiltwalk for the second year running, to show our support for the British Heart Foundation. It was a great opportunity to socialise with colleagues as well as supporting our chosen charity partner. The rare appearance of the Scottish sunshine along with the beautiful Aberdeenshire countryside certainly helped us along the 17.8 miles.”
The British Heart Foundation, renowned for its tireless efforts in cardiovascular research, prevention, and support, resonated deeply with the team and their fundraising objectives. Heart disease continues to be a prevalent health concern worldwide, affecting countless lives. By aligning their efforts with the BHF, the team demonstrated their dedication to raising awareness and vital funds to combat this pervasive condition.
To donate and support their cause, please visit https://www.justgiving.com/campaign/icr
by Andrew Lake, Technical Sales Engineer at ICR
The end of May marks six months to COP28, and already there has been a call for the international climate summit to give more credence to the issue of methane emission reduction.
Recognising the need for greater action, COP28 UAE President-Designate, Dr. Sultan bin Ahmed Al Jaber, recently said, “The oil and gas sector needs to up its game, do more and do it faster. Let’s aim to reach net-zero methane emissions by 2030.”
Methane and misinformation
Mr Al Jaber’s call to give methane emissions more attention during the hotly anticipated discussion between political leaders follows a stark warning by the International Energy Agency (IEA). In January 2021, the IEA stated that although methane emissions from the global oil and gas industry fell by an estimated 10 per cent in 2020, it was only due to producers slashing output in response to the historic shock of the COVID-19 crisis. The IEA report went on to warn that these emissions could rebound strongly without greater action by companies, policy makers and regulators.
With COP28 set to reignite the debate around how asset operators monitor for methane emission leaks, many will be asking how much is too much? Worryingly, a study published in December 2022 by researchers at Princeton University and Colorado State University found that some estimates of methane emissions from offshore oil and gas production in the UK have been severely underestimated for some time.
In fact, the study found that about five times more methane is being emitted from oil and gas production in the UK than the government has previously reported. Since asset operators tend to use similar methods, it is expected that the undercalculations are taking place not just in the UK, but globally.
Although individual countries are obligated to report their greenhouse gas emissions to international bodies such as the United Nations Framework Convention on Climate Change, these recent findings suggest that some of the methods used to calculate methane emissions rely on outdated or incomplete information, and therefore may not accurately represent actual emissions.
The severity of the issue
So, why care about methane emissions? According to the United Nations (UN), the colourless, odourless and invisible greenhouse gas, is responsible for more than 25 per cent of global warming. Due to its structure, methane traps more heat in the atmosphere per molecule than carbon dioxide (CO2), making it 80 times more harmful than CO2 for 20 years after it is released.
The UN estimates that by cutting methane emissions by 45 per cent by 2030, could help the world meet the Paris Agreement’s goal of limiting global warming to 1.5°C.
We know that massive methane leaks, which are commonly referred to as super-emitter events, have been reported around the world including in the US, Latin America, and Middle East. The most common reason for these major leaks is equipment failures and if they aren’t identified quickly enough or prioritised, the leaks can last for weeks, resulting in significant damage to the environment. For example, an emissions leak at a storage facility in the US in 2015 led to almost 100,000 tonnes of methane escaping into the atmosphere over a four month period.
Another ‘super-emitter’ example was uncovered by Spain’s Polytechnic University of Valencia when researchers revealed that an oil and gas platform in the Gulf of Mexico had released 40,000 tonnes of methane during a 17 day period. This is equivalent to 3 per cent of Mexico’s annual oil and gas emissions. In fact, the researchers claimed that if it were not for images captured by a European Space Agency satellite, the release of harmful gases would not have been discovered by the operator, leading to methane escaping over a larger period and causing a greater environmental impact.
Furthermore, recently published reports based on NASA satellite data demonstrated that two Turkmenistan oil fields have been emitting more methane than any other super-emitter in the world. The two major fields near the Caspian Sea were recorded as emitting methane emissions of 4.4 million tonnes in 2022 combined, up to 427 tonnes per hour in August of that year. This is more than the total CO2 emissions of the UK and is primarily a result of equipment leaks and flaring or venting.
Both of these examples demonstrate that not all asset operators have an effective methane emission identification and remediation programme in place.
More must be done and a fit-for-purpose, innovative approach is needed, a sentiment which was recently echoed by the Chief of the United Nations Environment Programme’s Energy and Climate Branch, Mark Radka. He said, “A more accurate picture of methane emissions gives governments and companies the information they need to act with confidence…the way to spot all emissions – large and small – is to have good monitoring regimes. Until recently, we did not have the tools to monitor methane emissions.”
The drivers for better methane detection
Perhaps unsurprisingly given these examples, the US government recently announced plans to impose fines on major methane emitters. As part of the Inflation Reduction Act (IRA), the Biden administration is taking the release of methane into the atmosphere seriously. The new legislation, which is still being finalised, is expected to force energy companies to take action or else face fees of up to $1,500 a tonne for methane emissions they fail to identify and remedy. It is thought that this US law could be rolled out internationally if it becomes a successful preventative measure to reduce methane emissions in the US.
It’s not just the threat of regulatory fines that may influence the actions of operators when it comes to methane emission reduction. According to the IEA, it is not only beneficial for the environment but cost effective too. They shared, “IEA analysis highlights that reducing methane emissions is very cost-effective for oil and gas companies. Unlike CO2, there is already a price for methane everywhere in the world – the price of natural gas. This means the costs of improving operations or making repairs to prevent leaks can often be paid for by the value of the additional gas that is brought to market.”
Adding to the cost benefit, asset operators are incentivised via reward schemes for accurately measuring and remediating methane emission leaks. These can come in the form of Renewable Natural Gas Carbon Credits worth significantly more than the raw gas prices, e.g., LCFS, RINs, etc. Certification of Responsibly Sourced Gas.
Furthermore, asset operators face reputational damage and backlash from activists and investors alike if it is exposed that they have failed to effectively detect and manage methane emissions. In today’s corporate world, a company’s ESG credentials mean a lot, and a leak could destroy these overnight.
Methods for managing methane emissions
For many asset operators this is an issue that is causing concern. Methods that have been tried before are not as efficient or safe as they need to be. Using ground level sensors for example simply cannot provide the necessary reach to capture leaks accurately, and therefore risk operators missing high levels of methane escaping at an asset. Similarly, handheld sensors are available but require personnel to climb onto the asset using scaffolding or rope access. With these assets typically suffering from corrosion or other issues due to age, this puts the health and safety of personnel at risk. This approach is also extremely time-consuming and labour intensive, and proves challenging to capture accurate results due to the positioning of the sensors.
Sky-Futures™ (an ICR company), with over 10 years of operating experience in the oil and gas sector, providing critical asset inspection data and analysis have formed a partnership with industry-leading sensor technology from SeekOps, a company formed to bring NASA and NASA’s Jet Propulsion Laboratory (JPL) developed technology used on Mars Rover missions to the terrestrial marketplace. This partnership has been working with asset operators, not just in the offshore oil and gas sector but at onshore oil and gas facilities, structures in the renewables sector, including petrochemical plants and biogas plants, delivering a state-of-the-art, technology-first solution to methane emission detection that provides an alternative to these outdated methods.
By leveraging best-in-class sensors, advanced drones or unmanned aircraft systems (UAS) inspections, and actionable analytics, the partnership is supporting asset operators to decarbonise their operations, not only detecting but quantifying methane leaks as early as possible. This ultimately, enhances the operator’s ESG reporting and transparency with key stakeholders through highly accurate and reliable data.
This innovative approach not only saves the asset operator significant time as the use of UAV/drone inspection can cut the time in half compared to alternative methods, it reduces the risk to personnel by removing the need to use rope access or scaffolding, and it saves the operators millions of dollars by avoiding asset shutdowns or disruption to day-to-day operations.
The technology and skills of the drone/UAV pilots and our engineers is so advanced that the inspection can even take place from a vessel, without the need for them to board the rig and take up accommodation, allowing them to move efficiently from one site to another. This approach in itself reduces emissions by allowing the team to avoid helicopter trips to the site and back.
Recently, the Sky-Futures™ team supported an operator by measuring methane emissions at four offshore platforms in the Southern North Sea. The four platforms varied in size from a Normally Unmanned Installation (NUI) approximately 30m along the deck to a five-jacket complex covering more than 200m.
To ensure no disruption the operator’s operations, the Sky-Futures™ team conducted the surveys from an inter-field vessel having gained the necessary permits. This use of state-of-the-art UAS and sensor technology, combined with highly-experienced pilots and engineers, identified areas of methane emissions in real-time to ensure accurate measurements could be obtained.
Our data analysis and report provided our client with quantified methane emission results they required for their baseline study. The results captured not only the expected emissions from the vents, but also identified locations of methane releases not identified by deck-based inspection techniques. With unobtrusive remote operations, there was no impact to personnel on board and day-to-day operations were unimpeded.
Onshore facilities are also benefitting from this use of new technology with established working techniques for drone systems. A recent project saw a team of two travel around nine locations in West Africa by road vehicle, helicopter and pirogue to establish baseline readings for a company with a view to returning later this year to undertake a second survey after emission reduction measures have been undertaken by the plant operators. During the project, all areas of all plants were surveyed including flares, storage tanks, compressors, wellheads, piperacks, and in some instances, emission sites were identified and the operators we were able to close off the leak at the time of the survey.
Pledges vs action
So far, 150 countries have committed to reducing human-caused methane emissions by at least 30 percent by 2030 under the Global Methane Pledge. However, due to the scale of the issue and the serious impact of methane on the atmosphere, the pressure is growing to turn this from simply a pledge into strong industry/government backed commitment, and ideally a mandatory methane agreement.
Given the severity of the problem that methane emissions represent, we at Sky-Futures™ hope that the use of innovative solutions, like drone/UAS and sensor technologies, to identify leaks and allow operators to take a more proactive approach to monitoring, does take place during COP28 to further raise awareness of the issue and remedies available today. Regardless, COP is 13 days out of 365, so the threat of major methane leaks and their impact on climate change must be more than a tabled discussion at the conference.
With COP28 just around the corner and regulatory scrutiny intensifying, asset operators need to prioritise the detection of methane emissions, not only because they are told to, but because it is good for the planet and their bottom-line. Luckily for them, the latest drone/UAS and sensor technology is at the forefront of this, and we have the proven solution that will reduce the impact of methane emissions.
Find out more about our services underpinned by innovative drone/UAS and sensor technologies and world-class engineering here.
Wind power is one of the world’s largest sources of renewable energy and as the world continues to navigate this constantly evolving energy landscape, a key challenge for on and offshore wind operators is how to safely and cost efficiently implement a robust inspection plan of windfarms located in some of the world’s most challenging geographies.
Many of the UK’s windfarms are situated in remote areas and are subject to severe weather. Carrying out essential maintenance of these turbines and blades can be costly and carries a significant risk to personnel. Turbine blades over time will experience damage as a result of severe weather, reducing their efficiency and potentially leading to failure, it is therefore no surprise that a robust method of remote inspection is essential in order to maintain operations.
Unmanned aerial vehicles
UAS inspection is one of the most effective methods for surveying and maintaining wind turbines, removing personnel from dangerous locations and allowing for an efficient and cost-effective inspection.
Sky-Futures™, an ICR company, was recently tasked by a global energy company to inspect two wind turbines in the Moray Firth, Scotland. The turbine support structures and blades had several known areas of damage, such as cracking and damaged safety components.
Case study
The company’s personnel conducted a number of drone flights and gathered a large dataset of imagery to carry out a visual inspection of the condition of the turbines. This method reduced the exposure of personnel to working at height and enabled a swift and thorough inspection.
Using very high-resolution images, a visual assessment was made of the known anomalies and showed no deterioration, but the inspection did identify previously unrecorded areas of concern. The high-quality inspection provided a clear view of the state of the turbines, supporting structures and helped to form a critical part of the decommissioning plans.
Power generation
In 2020, the UK generated 75,610-gigawatt hours (GWh) of electricity from both offshore and onshore wind. Individually, both offshore and onshore wind electricity generation has grown substantially since 2009 and will continue to do so to reach the government’s target of “Net Zero” greenhouse gas emissions by 2050.
With the global energy industry continuing to transition to low carbon sources, wind developers will face increased pressure to keep the turbines spinning and developing a robust maintenance regime must be a priority. By harnessing the power of UAS for remote inspection, they can safeguard their personnel and make the most efficient use of their time and money. For more details about how ICR Sky-Futures™ can help you contact, Andrew Lake, Technical Sales Engineer.
ICR has been awarded the prestigious EcoVadis Silver Award for its commitment to sustainability and its efforts to achieve ESG goals. EcoVadis is the world’s largest and most trusted provider of business sustainability ratings, and ICR’s recognition is a testament to its dedication to creating a positive impact on the environment, society, and the economy.
ICR’s ESG (Environmental, Social, and Governance) goals have been at the forefront of the company’s operations, and the company has been actively working towards making continuous improvements in these areas. The Silver status is a recognition of ICR’s success in implementing sustainable practices and ensuring ethical business operations.
“We are proud to have been assessed positively by EcoVadis for 2022 and to have received the Silver Award,” said Hollie Lawson, Corporate Development Director and Economic Social & Governance (ESG) Champion at ICR. “This recognition is a testament to our commitment to sustainability and our ESG goals, which remain a top priority for us. We will continue our commitments to act responsibly by integrating social and environmental concerns into business operations focussing on improvements for 2023 and the future.”
The EcoVadis assessment evaluates companies based on their policies, actions, and results in four key areas: Environment, Labour & Human Rights, Ethics, and Sustainable Procurement. The Silver Award indicates that ICR has achieved an overall score between 45 and 64, which places the company among the top 30% of companies assessed by EcoVadis.
As a leading provider of integrated engineering services and solutions, ICR is committed to creating a sustainable future by implementing environmentally friendly practices, promoting social responsibility, and ensuring good governance. The company’s efforts towards achieving sustainability are reflected in its core values and mission, which aim to deliver innovative solutions that create value for its clients, while minimizing the impact on the environment.
“ESG is not necessarily about being truly innovative or taking a brand-new approach, it’s about measuring and enhancing current practices and recognising where improvements can be made, as well as being conscious of how your actions impact what’s going on around you,” says Hollie Lawson, Corporate Development Director, and Economic Social & Governance (ESG) Champion of ICR Integrity Ltd.
After joining ICR in 2014 as Commercial Manager, Hollie has since worked in associated roles in the company progressing from Commercial and Procurement Director in 2016 to Corporate Development Director and ESG Champion overseeing all related activities. She reflected,
“My appointment to ESG Champion in November in 2021 was made after identifying a need to focus our efforts in promoting ESG in the business. By December, a committee was established to identify a baseline of ESG practices and set targets on how to achieve these objectives.”
Enhancing the focus on ESG through employee communication to all stakeholders, educating our employees on what ESG means for ICR and ultimately raising the profile of ESG within the business, the committee has been an invaluable addition to the company’s structure.
She commented “The committee comprises our key support functions which all directly contribute to ESG. We also recognise and acknowledge that we are not experts in assessing our impact so we consulted Sustainable Advantage to aid us with baselining our current data and to help structure our ESG objectives, whilst helping to identify ways to incorporate new sustainable strategies into our business.
The focus on ESG prompted the business to reconsider its purpose. “We want to ensure that we contribute to sustainable development, as we work towards transitioning to Net Zero, whilst having a positive impact on our employees, customers, and communities where we operate.
Following the creation of the ESG committee and nomination of ESG Champion to maintain strategic focus and drive progress, Hollie commented on the journey, “Once the outline plan was established, we focused on baselining our carbon emissions and implementing a defined set of objectives”
Hollie experienced challenges along the way with data gathering being the most prominent. She commented “We experienced challenges with data gathering as getting access to the information could be difficult at times. To set specific targeted objectives we had to be thorough to ensure we attained the correct metrics and identify a baseline for reporting purposes. We also had to take into consideration our other facilities and employees that were not based in the Aberdeen Headquarters.
“As part of the data gathering process, I conducted workshops with each of the business divisions to brainstorm what they do well in terms of ESG, and what they could do better. It was an inclusive process that was engaging and aimed to involve everyone so although initially perceived as a challenge, it was incredibly beneficial.”
ICR defined key targets for the year ahead following the initial baselining of data to support ICR’s purpose. “For 2022, we identified four key areas we hoped to achieve: Improve our environmental impact score by 34% which includes a reduction of scope 1, 2 and 3 emissions by 10% YOY to achieve Net Zero by 2050; Accelerate our energy transition objective in support of our target of a more market diverse revenue mix by 2025; Publication of an annual Impact Report to ensure transparency and disclosure in line with best practice; and achieving EcoVadis accreditation, which will demonstrate our contribution to ESG internally and externally.”
Scoring of ICR’s 2022 performance is underway with Sustainable Advantage and it is hopeful to demonstrate improvements. During this period, ICR has secured a silver accreditation with EcoVadis and has now launched its first Impact Report which looks back to ICR’s ESG performance throughout 2022. The focus is now on its 2023 objectives and associated strategic activities.
Hollie continues: “In addition to our focus to achieve targeted objectives, we chose to refresh our corporate values to align with our approach to ESG.”
After consultation, the ESG committee defined three categories that encompassed each of the ESG pillars to be easily digestible and unique to the way ICR operates: Respectful, Responsible, and Dynamic.
Commenting on the activities under each of the categories, Hollie said: “Our Respectful value covers communities, cultures, people, diversity and inclusion. At ICR, our approach is people first and so we continue to make sure that individuals of any background, culture, age, gender, or sexuality are respected and have the same opportunities to be included and heard.”
With the energy transition taking a strong hold over the energy industry, the Environmental pillar is often seen as the most visible component of ESG. Hollie says: “Our Responsible value ensures we are being responsible in every way we conduct our business, which embodies our environmental responsibility. For example, enhancing our service offering to support clean energy, looking at sustainable alternatives in the supply chain, reducing international travel where possible to cut down on emissions, and putting a major focus on waste management to maximise recycling potential as much as possible.
“Environmental responsibility is intrinsic in the way we operate, not only do we give focus to our own carbon footprint, but our core operations also contribute to the longevity of infrastructure and to minimising embodied carbon. Replacing large steel equipment is energy intensive and requires the production of new replacement equipment. By repairing the equipment, our clients avoid the emissions associated with steel production and transportation as well as the energy required to perform the replacement. Our installation process reduces the number of personnel offshore meaning less emissions from travel and our weldless technology eliminates the need for hot work or welding, providing a safer solution to our clients.”
ICR has independently carried out life cycle analysis of its repair products and has validated that its engineered composite repair solution Technowrap™, offers an overall 66% reduction and Quickflange™ weldless connector solutions offer a 39% reduction in carbon emissions when compared to traditional steel replacement methods.
Commenting on the Dynamic value, Hollie said “Being dynamic is very important to ICR and we must be agile in the way we respond to things; our service offering, our response times to clients and the way in which we conduct our business. Our products and services are continually evolving to meet the changing needs of our clients, new markets and in particular our transition to clean energy and alternative markets. Maintaining a dynamic edge is essential for ICR to retain our position in current markets, to continue to provide an exemplary service and to transfer our skillset to nuclear, offshore wind and other markets. We encourage creativity and innovation internally which enables us to achieve this.”
Hollie concludes with an insight on the benefits of communicating your ESG initiatives to younger generations entering the industry:
“We have the energy and motivation to want to be better as a collective and I think there are significant benefits of communicating ESG initiatives to younger generations entering the industry. We have introduced an ESG conversation during the recruitment process, particularly with the younger generation. They can offer a fresh perspective and innovative views on energy transition having been surrounded by climate conversations most of their adult lives. We want to know what they consider most important and what they would like to see the company involved in for the future to help re-align our ESG targets and ensure we continue to be conscious of our impact whilst leading by example within the industries we operate.”
By Espen Winsnes, Sales Manager at ICR
Maintaining offshore assets has always been complex business, but today across the North Sea in particular, ageing assets, cost restrictions, maintenance backlogs, skills shortages, and a growing need to protect the environment has exacerbated existing challenges.
Reflecting on ICR’s more than 30 years’ experience in the global oil and gas market, and over 50,000 completed projects, Espen Winsnes, ICR Sales Manager based in Norway, shares his views on the current trends impacting the maintenance of offshore assets in the North Sea, and the benefits of rapid, innovative maintenance solutions that can protect the future of operators’ investments.
Cost conundrums
According to global energy research analysts, Wood Mackenzie, as much as half of the North Sea’s 600 installations, were first installed 40 years ago. After four decades of operation, many of these ageing assets are due to be decommissioned at an estimated cost of £20billion over the next 25 years.
The cost of decommissioning an asset entirely, or replacing steel infrastructure such as offshore caissons and risers, is considerable. So, it is not surprising that operators are seeking to increase the economic life of their offshore assets, meaning many will remain in operation far longer than was anticipated when they were originally designed.
Here in Norway for example, despite one of the country’s oldest platforms, Statfjord A, being in use since 1979 and the rig due to be dismantled in 2022, Equinor decided in 2020 to extend its life span until 2027. Likewise, two other platforms in the same field, Statfjord B and C, which are of a similar age, have had their life extended until 2035.
Extending the life of an ageing offshore asset is not mandated by any one regulator and is instead a decision taken by the operator, so the burden to ensure their integrity falls on them. With a low global oil price and possibility of recession, these investments can come into question. Most operators today however understand the need to prioritise maintenance methods that will allow them to preserve their ageing offshore assets, whilst protecting the environment and being cost effective, and from our experience, there is good reason to do so.
Based on the more than 50,000 projects that we at ICR have delivered worldwide, and many of which took place in the Norwegian North Sea, we estimate that adopting world-class, innovative maintenance solutions instead of replacing key infrastructure on the asset can save an operator tens of millions of dollars each year.
The sustainability agenda
Of course, it is not always viable to extend the life of an ageing asset and there is no other option than to assess the infrastructure for recycling purposes. So today, operators are not only considering environmentally-friendly alternatives to make the day-to-day running of their assets more sustainable, some are considering the purpose of them entirely.
As the energy transition gathers pace, operators are routinely considering whether they can breathe new life into otherwise redundant assets. With global net zero targets fast approaching, the repurposing of offshore assets typically used in oil and gas activities is being considered a viable option to launch new clean energy projects in areas such as carbon capture storage, green hydrogen and offshore wind. This will create environmentally-friendly opportunities to recycle infrastructure such as heavy steel, and save precious time.
On paper this sounds like a smart plan however considering that North Sea offshore infrastructure is rapidly ageing and as a result, the integrity of the rigs’ infrastructure could be in question, it is not so simple. We know that more than 70% of the world’s oil is based in mature fields, and that North Sea assets in particular have outlived their initial lifecycle expectations, therefore great care and in-depth knowledge is required when repurposing these assets for clean energy pursuits to ensure long-term safety and efficiency.
By harnessing the more than five decades of global integrity management experience ICR has acquired, our world-class engineers and technicians are able to support the complex process of repurposing offshore assets for the energy transition.
For the operators extending the life of ageing platforms, such as Statfjord A, B and C in Norway, it is equally important that they consider the impact of their maintenance programmes on the environment including air quality and marine life. After all, the world’s eyes are firmly focused on how companies are acting responsibility and taking sustainable action across all of their operations.
At the end of March this year, the European Commission proposed a new EU Green Claims Directive which will set fresh requirements for companies making environmental claims about their products or services. These requirements will see increased pressure on companies across all sectors to demonstrate that they are acting responsibility when it comes to their impact on the environment.
The Directive will impact the oil and gas industry, but for the companies operating offshore, this has long been a point of contention as operators are already expected to take the necessary action to limit greenhouse gas (GHG) emissions, and take care over marine life.
In Norway for example, the Norwegian Environment Agency has applied the Pollution Control Act to the offshore industry which includes specific requirements on the protection of the natural environment, including monitoring the natural environment (including the effects on water column and seabed, limitations on discharges to air, and waste handling). Licensees are required to obtain a discharge permit before commencing exploration drilling, production activities and processing, which will set out pollution discharge limits and waste handling procedures.
It’s not only the regulator clamping down on bad behaviour that could negatively impact the planet. At the end of last year, the Norges Bank Investment Management, which manages a $1.3tn Norwegian oil fund and invests the country’s oil revenues, expressed intentions to vote against companies that fail to set a net zero emissions target having already set a target for Norwegian oil companies to hit net zero by 2050, further evidence that industry investors are becoming more aggressive on environmental, social and governance (ESG) issues.
Managing maintenance resource
Many operators today do understand the financial benefits of maintaining their assets, not to mention the regulatory requirements to do so, however the maintenance of ageing offshore oil and gas production facilities is far from straightforward and presents many challenges for operators.
One of the key issues mentioned is that many oil and gas assets have been in service for more than four decades, far longer than intended. This means maintenance programmes have been developed later in the life of the asset and require expert knowledge of the industry and the assets’ equipment to develop fit-for-purpose solutions.
Without access to this pool of knowledge, operators risk their maintenance programmes failing. In March this year, the UK Health and Safety Executive (HSE) issued a warning that maintenance backlogs on North Sea offshore installations that peaked following the pandemic have never returned to pre-COVID levels, a trend we see worldwide. One reason behind this is ageing installations and a loss of knowledge and competency, which the regulator claims has the risk of leading to a ‘major accident’ in 2023 or later.
For operators this is a caution that they cannot afford to ignore. As maintenance delays increase, so does the threat of danger to life and environmental damage, as well as heightened risk of shutdown time. Often smaller integrity issues worsen over time and become more at risk of a catastrophic incident so it is critical that repairs are conducted in a timely manner. Without experienced engineers on hand to survey and deliver pioneering maintenance solutions, another major incident could be on the horizon.
Furthermore, to successfully embrace the opportunities of the energy transition by re-using and maintaining existing oil and gas infrastructure, the right skills and experience are critical. As Norway’s Minister of Petroleum and Energy, Tina Bru, put it recently, “retaining expertise and technologies in the oil and gas sector is also vital for the development of new industries and technologies such as carbon capture and storage, offshore wind and hydrogen.”
At ICR, we understand the importance of quick responses to integrity issues, we pride ourselves on our ability to offer our customers rapid response solutions including on-the-ground experts, in-house surveys and the fast mobilisation of our best-in-class technicians and technologies. This allows us to reduce the average industry wait time of a project commencing from several months to just weeks. This time saving can significantly impact the long-term integrity of the asset, reducing the risk of further damage as the equipment or infrastructure awaits inspection and maintenance.
Rapid, innovative and sustainable solutions
The need for cost-effective and environmentally-friendly solutions that can be deployed at pace and scale by highly-skilled and experienced specialists has never been more important. Innovative technologies that aid more efficient, safer and sustainable operations are one way that we at ICR are achieving this for our customers.
Our suite of world-leading tools are not only cost-effective, but can be deployed with limited disruption to operations, reducing the need for downtime or asset shutdowns, as well as being low carbon alternatives to traditional methods. For example, caisson integrity can pose a major challenge on offshore platforms and is a maintenance issue that we support operators overcome frequently. Although a caisson is a relatively simple component of the platform, it can cause significant integrity issues if damage is left unrepaired, resulting in rising costs for the operator and the risk of the debris detaching and damaging the seabed and marine life.
For some operators, it might seem logical to replace a damaged caisson entirely but this will mean replacing the large steel part with a new one that has to be produced and transported, which results in unnecessary CO2 emissions. Furthermore, the installation of a new steel caisson part would warrant a potential rig shut down, specialist crews on site and the rental of maintenance ships, all at a considerable cost to the operator.
From our experience, a maintenance programme to repair caissons using the best-in-class technologies such as robotics is far more economical, efficient and sustainable, while reducing the challenges and safety hazards that on-site technicians would otherwise face. A robot for example can cover 10 times as much of the infrastructure in the same time as a human technician, performing around 70 percent of the work, allowing the technicians to avoid long periods performing rope access, focus on more complex and specialist work. There is also an environmental benefit, if the infrastructure features lead paint for example, then the robot can remove around 90 per cent of the paint preventing it from dropping into the ocean.
Another example is the use of ICR’s Technowrap™ repair solutions, proven to extend the life of a part up to 20 years, which can be equal to the lifetime of a brand new part if it was replaced entirely but that would lead to increased emissions.
Our studies have shown that by using this innovative repair solution, operators can benefit from significant emission reduction savings, helping to lower their own environmental footprint. For example, when using our repair system technology for the repair of a two metre section of 8” carbon steel pipework (85.1 kg) on an offshore rig, the system reduced emissions by 66% compared to the traditional methods.
Recently on a trial customer project, we deployed the Technowrap™ repair technology as part of our designed calculated engineer solution for the application of corrosion protection. The solution allowed the operator to extend the life of the subsea pipeline by up to 30 years, which is five to 10 years more than its standard lifetime design.
In Norway, we also supported a major operator correct wall defects as a result of excessive corrosion present on a 14” helideck drain line on a North Sea platform. Our engineered composite repair solution reinstated the integrity of the pipework for 20 years and was in accordance with the latest ISO standards.
Without these advanced technological solutions to aid efficient maintenance work, these operators may have chosen to replace the structures entirely leading to increased cost and emissions. The future of the oil and gas industry requires a more considered, greener alternative and we are proud of the role our proprietary technologies and engineers play in making that a reality.
You can read more about our successful cost saving and emission reducing projects here.
ICR Integrity (ICR), global provider of specialist repair, inspection and integrity solutions, has announced the re-award of their Master Service Agreement (MSA) with Petrofac valued at over £1million per annum following a successful tender exercise.
The MSA was initially awarded in 2019, as a result of ICR’s well-established partnership with Petrofac delivering specialist repair and inspection services for all duty holder assets in the North and Southern North Sea, with the purpose of strategically aligning the various ICR services delivered to Petrofac under a single cross-asset agreement.
The internationally recognised service leader will continue to provide Petrofac with innovative repair solutions including; Technowrap™ engineered composite and clamp repairs, Quickflange™ weldless connection solutions, chemical injection pump skids, corrosion inspection services and drone inspection through its Sky-Futures™ team.
Jim Beveridge, Group CEO, said:
“We are delighted to announce this significant re-award with Petrofac who we have successfully supported over the last 15 years. The new MSA highlights our ongoing commitment to our clients and the support we provide with the inspection and integrity of their assets. We look forward to continuing our successful partnership with Petrofac as we move into 2023.”
ICR has over 30 years of experience in providing innovative solutions for the oil and gas, renewables, power, defence and telecoms sectors. Recently the company launched INSONO, a composite NDT inspection technology that validates the condition and integrity of composite repairs, reducing carbon emissions, extending asset life and increasing confidence in the asset’s performance.
Sandy Merson, Group Head of Operations and Maintenance at Petrofac added:
“Our collaboration with ICR’s specialist repair and inspection services has added significant value to our duty holder assets in recent years. The re-award of this MSA is testament to our partnership, combining our expertise and capabilities. We look forward to ICR’s continued support moving forward.”
Headquartered in Aberdeen, Scotland, ICR operates in global locations with operational bases in the UK, Norway, Abu Dhabi, USA and Australia as well as an extensive partner network extending its global reach.
ICR Integrity (ICR) has announced the appointment of Gemma Neal as Head of Marketing and Communications.
In Gemma’s new role, she will implement a comprehensive group-wide global strategy to support ICR globally while also driving its initiatives in the energy transition.
Holding over 18 years of strategic marketing and communications experience, Gemma has worked across multiple sectors including, renewable energy, oil and gas, marine, hospitality, education, and media. Latterly Head of Marketing at Vysus Group, she led the global rebranding from Lloyd’s Register Energy and worked across the business to support international business streams.
Gemma’s multi-industry experience fits the company’s growth aspirations in core markets including green energy, oil and gas, defence, nuclear, process industries, power, utilities and infrastructure.
Commenting on her appointment, Gemma said: “I’m delighted to join ICR at this pivotal time for the company’s growth. The delivery of engaging marketing and corporate communications has never been so important and will contribute greatly to the value of the business. I am excited to be part of further successes for the company in 2023.”
With over 30 years of experience in providing innovative solutions for a range of industries worldwide, ICR offers clients world-class repair and integrity solutions providing carbon efficiencies and greater asset uptime and reliability, while saving time and cost compared to traditional repair methods.
Alan McQuade, Group Managing Director, added: “I’m delighted to welcome Gemma to ICR. Her many years of knowledge and experience will help shape the ICR brand and extend our foothold into new markets and locations around the world. She has exactly the right approach and drive required to aid our overarching ambitions and shape the wider marketing strategy of the group.
The company operates in global locations including Europe, MENA, Australia, ASEAN and North America.
This integrated approach to implementing composite repair solutions can reduce carbon emissions by 66% compared to traditional methods, says Antonio Caraballo, Inspection & Integrity Management Services Director, ICR, UK
The repair and maintenance of assets has always been an important element in the oil and gas industry and is essential to ensuring the reliability and safety of operations. Continuing to be a priority in today’s energy industry, throughout the transition to explore greener energy alternatives, the importance of corrosion control remains at the forefront of operator’s minds. Inadequate or infrequent inspection and management of assets can lead to a range of risks including production failure and loss of containment, potentially leading to catastrophic impacts on the personnel, plant and environment. As a vital factor in optimising the productivity, production, and downtime of operations whilst mitigating potential risks, corrosion control is essential to minimising operational and repair costs and extending asset life.
With the risk of health and safety issues and disruption to operations, corrosion can also compromise the appearance, performance, strength, and load-bearing ability of assets. Corrosion management will allow the operator to mitigate any safety and environmental hazards, as well as prevent any production and financial losses. As a key challenge facing the industry today, corrosion can lead to production delays, equipment failure, operational expenditure and safety hazards.
ICR Integrity is an industry-leading, technology-enabled provider of specialist repair, inspection and integrity management solutions to a diverse range of industries. The company’s well-established repair and maintenance division offers clients world class repair solutions providing greater asset uptime and reliability while saving time and cost compared to traditional repairs. The newly formed specialist inspection and integrity division reflects the company’s focus on innovation and technology advancements in support of its global clients’ integrity management requirements.
The traditional oil and gas industry, which ICR has a strong presence in, requires solutions that provide validation and assurance on the condition of their assets, as well as any repairs that have been undertaken. With a strong focus on the environment when carrying out testing, avoiding carbon intensive techniques is essential to the sector. Many ageing assets have composite repairs reaching the end of their design life, meaning there is an increased requirement to revalidate or extend the life of the repairs, allowing operators to avoid costly replacement options that may require a full shutdown of the asset. Regulatory bodies, have a strong focus on the integrity management and condition monitoring of repairs. Being able to inspect the defined life repairs is therefore a key enabler in ensuring safe and reliable operations for extended time periods.
Based on the principles of acoustic inspection methods with pitch and catch, ICR Integrity’s innovative new Non-Destructive Testing (NDT) technique, called INSONO. It provides resonance and mechanical impedance analysis to detect and size any flaws in the inspection of engineered composite repairs. The technology has been validated by The Welding Institute (TWI) and has patent and UKAS accreditation pending. A hand-held scanner creates 3D models and visual representation of the composite repair, allowing for precise dimensions to be used in the assessment. Any defects in three main areas of concern can then be detected – in the bond line, the interlaminar and the steel substrate.
With over 30 years’ experience, ICR is internationally recognised as a service-leader and a key-player in the ongoing development and adoption of composite technology. INSONO complements its industry renowned Technowrap™ range of engineered composite repairs and assures operators that their composite repairs are fit for purpose, satisfying regulatory body guidelines regarding inspection criteria. It also allows for the extension of defined life repairs reducing waste whilst avoiding high-carbon emissions from traditional steel replacement alternatives.
Inspection techniques currently available are not practical to deploy in the field and many are unable to access complex geometries with a single technique or product. INSONO is hand-carried and requires only one Technician, meaning inspections can be carried out in higher risk areas where they may not have been previously considered.
ICR is internationally recognised as a service-leader and a key player in the ongoing development and adoption of composite technology. The versatile product range offers practical and cost-effective rehabilitation of pressure systems and structural components with minimal disruption to operations, typically delivering valuable cost savings. The repair systems can not only be applied to live systems with no impact on production, but also offer a low greenhouse gas (GHG) emissions alternative to steel replacement. Replacing large steel equipment is energy intensive and requires the production of a new part. By repairing their equipment, ICR’s clients avoid the emissions associated with steel production and transportation as well as the energy required to perform the replacement.
Technowrap™ repair solutions can be engineered for anywhere between 2 and 20 years, which can be equal to the lifetime of a traditional replacement and as such are directly comparable to a replacement solution, depending on the anomaly type. ICR compared the carbon impact of using its repair system technology for the repair of a 2-metre section of 8” carbon steel pipework (85.1 kg) located 225 miles offshore from Aberdeen. The findings established that the repair system reduced emissions by 66% compared to the traditional replacement method.
On a recent project in the Northern North Sea, an operator client asked ICR to review various sections of pipework that had sustained severe corrosion resulting in wall thinning below the minimum allowable wall thickness of the pipework. Due to the location of the pipework being underneath the helideck, the client required minimal impact on production and an engineered Technowrap™ composite solution was chosen as the most efficient, engineered solution. The scope of work saw the delivery of the repair with a 20 year repair lifetime. Technowrap™ trained personnel installed the 2K materials, completing the repair with a design temperature of the line of 90ºC.
As there was no shutdown required, the solution offered was extremely cost effective. Due to the complexity of the location (under the helideck), ICR mobilised a multi skilled rope access trained composite repair team who implemented the repairs, removing scaffolding requirements. The appropriate risk assessments were carried out to minimise any potential risks associated with the work. In order to achieve the required adhesion grit blasting to the cleanliness standard of SA 2.5 was completed prior to the application.. As a result, the scope was delivered on time, within budget and with no incidents or accidents. The client was given the further assurance through the bespoke engineering and design calculations for each repair, carried out to code requirements in accordance with ISO 24817 and ASME PCC-2.
With safety, environment, efficiency and reliability as a top priority in the industry, ICR is leading the ongoing development and adoption of composite technology to support operators globally. Actively working in close collaboration with clients to ensure the structural integrity of assets is maintained with minimal disruption to operations, ICR is able to support clients on their journey to sustainability.
With extensive experience dealing with some of the most challenging projects in the industry, ICR’s integrated approach to implementing composite repair solutions and specialist engineered clamp designs can reduce emissions by 66% compared to other methods. With sustainable operations at the forefront of the industry’s agenda, this further allows clients to repair and maintain their assets to avoid costly operational disruption and potential safety and environmental hazards.
To view this article in World Pipelines click here
