Download - OffComm news summer 2015: The SMARTER Digital Oilfield

NEWSR E M O T E C O M M U N I C A T I O N S E X P L O R A T I O N

S U M M E R 2 0 1 5

Revealed:The driving forces behindthe future of remote comms

Guaranteeing continuityfor critical data

Digital Oilfield market worth US$38.49billion by 2014 • Digital oilfield services togrow to +US$3.15billion in 2015 • Partnership connects Aberdeen on & offshore •

M2M offshore expectations for next decade • More apps improve ops as networks deploy • Talking data! • Smalldevices with big ambition • Why now is NOT the time to be cutting comms budgets • PLUS The Quarterly, events,appointments and much more inside!

THE LOWDOWN

Produced by CTLD Publishing Ltd

The smarter(and more cost-effective)

digital oilfield

SPECIALINTERVIEW

AbsoluteMobility

Globalstarpg 24

The Data Driven Production Optimization Conference

(June 16-17, Houston)

The industry-leading forum in which experts in the field of production and operations data and analytics gather to share strategies to use operational data effectively to increase efficiency and improve production rates in your operating assets.

To find out more and reserve your place go to: www.upstreamintel.com/data

Email: [email protected] Tel. +44 (0)20 7375 7560

reduce E&P costs and shorten schedules

raise productivity

slash downtime

make better use of the shrinking pool of experienced technical staff

improve worker safety and health

extend the lifetime of ‘brown fields’

undertake more complex projects to access reserves in difficult environments.

BENEFITS OF ANALYTICS

Upstream Analytics: Market Overview

Data analysis could help oil and gas companies boost production by 6-8%.

Apache executives: by improving pump performance of 1%, oil production will rise by half a million barrels a day, with a gain of $19 billion a year.

POTENTIAL COST SAVINGS

Halliburton estimated that its first development of a digital oilfield in a deepwater environment led the operator to achieve 95% uptime during the first month of production - and to avoid more than $64 million in lost production during the first 18 months.

DATA CHALLENGES

Accessibility

Change Management

Formatting/Integrating

Latency

Quality

Standards

Value/Cost

Volume

15%

20%

5%

9%

16%

8%

10%

10%

3RD PLATFORM Mobile, Cloud, Big Data/Analytics, Social

By 2020 - 50% IT spending, 100% IT growth driven

by 3rd platform

By 2016, 70% of O&G companies will have invested in programs to evolve the IT environment to a 3rd platform driven architecture to support agility and readily adapt to change.

Upstream makes up 40% of IT spending and is expected to grow at a compound annual growth rate (CAGR) of almost 18%.

IT SPENDING PROJECTIONS, OIL AND GAS

$$

IT Spending in Oil and Gas Will

Increase to $49.4 Billion

in 2016

In 2015 capital expenditure by these companies is estimated to reach SD$500bn (of which over 10% is IT alone)

In 2015, the Digital Oilfield services market will have grown by 40% - to more than $3.18 billion

Software leads growth, at a CAGR of 6.59%.

1

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28ARTICLECalling the Oil Industry

Our man on the ground,Martin Jarrold, says thatnow is not the time tocut comms budgets

30CASE STUDYNTT Communications

and IDS

Operational reporting anddata analysis

31ARTICLE Exploring satellite for

deploying real-time

network O&G services

by Alexander Benitez, seniorscientist, ComSource

32ANALYSISDNV GL looks at globalindustry confidence andpriorities for the yearahead

NEWS

In this edition, we look at how to cut costsand make the digital oilfield a smarter process.

While orders for new rigs and servicevessels have slowed, in contrast it’sgetting busier inside the comms firmsenabling today’s digital oilfields.

Several key appointments, some creatingnew business areas, indicate that

delivering innovation and cost effectivenessare high on the agenda. Indeed, on page 28,Martin Jarrold, chief of internationalprogramme development for the GVF, delivershis message to the oil and gas industry thatnow is not the time to be slashingconnectivity budgets.

As E&P companies grapple with the currentstate of the market, the Remote Insight

Report in this issue looks at ways that oil andgas companies can smarten up existingcomms systems, cut costs and improveoperations at the same time. In fact, withM2M / SCADA sophistication well underway,the connectivity sector has an impending,important role in the future profits of miningand exploration. More about that in ourAutumn edition, out in July.

Until then, enjoy the summer.

Georgina Elrington

[email protected] us @OffCommNews

PS: In the meantime, you can find out whatforces are driving the future of remotecommunications on page 26.

6DEALS AND MARKETS Major announcementsin the sector

13REMOTE INSIGHT REPORT Smarter Digital Oilfields

Vaughan O’Grady takes usthrough who’s enablingwhat, and how

22SPECIAL INTERVIEWGuaranteeing the

continuity of critical data

Bob Legg at iOra looks atthe challenges

24SPECIAL INTERVIEWAbsolute Mobility

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Welcome

Inside this issueNEWSR E M O T E C O M M U N I C A T I O N S E X P L O R A T I O N

S U M M E R 2 0 1 5

Revealed:The driving forces behindthe future of remote comms

Guaranteeing continuityfor critical data

Digital Oilfield market worth US$38.49billion by 2014 • Digital oilfield services togrow to +US$3.15billion in 2015 • Partnership connects Aberdeen on & offshore •

M2M offshore expectations for next decade • More apps improve ops as networks deploy • Talking data! • Smalldevices with big ambition • Why now is NOT the time to be cutting comms budgets • PLUS The Quarterly, events,appointments and much more inside!

THE LOWDOWN

Produced by CTLD Publishing Ltd


digital oilfield

SPECIALINTERVIEW

AbsoluteMobility

Globalstarpg 24

Contents

3SUMMER 2015

26FEATURE Deliberating tomorrow’s

services

Forces driving the future ofremote comms

flashcomms

contractsQ1 2015page 9

Summer2015

Yinson selects IFS Apps for US$2m FPSO deal

Yinson Holdings Berhad, headquartered inMalaysia, is a supplier of offshore supportservices in the upstream oil and gas sector. Ithas chosen IFS, is one of the world’s leadingproviders of business software to large andmidsize companies within the oil and gasindustry, to deploy IFS Applications in a dealworth US$2million for its Floating, Production,Storage, Offloading (FPSO) division, at YinsonProduction which is based in Oslo, Norway.

“We chose IFS Applications because itoffered us a unique project-driven, dynamicsolution with industry-specific functionality,”Brad Neve, CFO, Yinson Production said.

“We are convinced that IFS Applications willhelp us to streamline our business, give usenhanced project control, and make ouroperations even more efficient.”

According to ABI Research, growth of thesolar and wind industry will increasingly relyon adoption of IoT-based technologies andservices. The firm expects IoT connectedwind and solar installations to grow at aCAGR of 21% between 2014 and 2020 withthe total number of connections growingfrom the almost two million in 2014 to 6.3million in 2020.

All aboard the Global Xpress, China

Beijing Marine Communication NavigationCompany (MCN), has signed new VAR(Value Added Reseller) agreements withInmarsat to bring Global Xpress, the world’sfirst globally available mobile broadbandservice, to China.

Inmarsat works with retail partners toprovide mission critical communicationsservices to Chinese multinationalenterprises including: Air China, ChinaCOSCO, China Shipping Container Lines,

and China National Petroleum Corporation.

The country is one of the largest markets forInmarsat’s mobile satellite-based voice andbroadband services, delivering double-digitgrowth in the last five years. The company isconfident that there will be significantdemand for Global Xpress too. And now,with VAR status, MCN will be able to reachfurther into the maritime, aviation,enterprise, and Chinese governmentsectors.

KVH deal with SES enables more ships

KVH Industries, a global manufacturer ofmaritime communications, has struck a dealwith SES to enable more ships at sea withconnectivity. This is a new satellite capacityagreement to connect vessels along theeastern coasts of Canada and the U.S., aswell as throughout the Caribbean and GoM.KVH says that it is experiencing increasingbandwidth demands from customers for avariety of applications including M2M, remoteoperations monitoring, and crew welfare.

“SES and KVH are elevating the world ofmaritime communications, puttingeverything – from streamlined operationsmanagement tools to all the entertainmentconveniences of home – at the fingertips of

ship passengers and crew,” said EliasZaccack, senior vice president of theAmericas region and head of the mobilitymarket solutions centre for SES.

Under a multi-year agreement, KVH will useKu-band capacity aboard the SES-4 satelliteto expand high-speed internet access andVoice over IP services – across its mini-VSATBroadband network – to luxury, government,and commercial vessels. Mini-VSAT Broadbandsystems are enabling crew comms at seawith KVH’s new IP-MobileCast contentdelivery service. This uses a satellitebroadband connection and multicastingtechnology to deliver news, sports, movies,music, and TV shows directly to the ship.

New windfarmservice vessel Fleet operator, Esvagt has takendelivery of the second of three Havyard832 SOV windfarm service vesselsfrom Havyard Ship Technology AS. Thevessel can accommodate 60 personsand is under the steer of Germancompany, Siemens Wind Power.

These two vessels will service offshorewindfarm projects in the Baltic Sea, andthe northern part of the German sectorof the North Sea. An additional order isalso underway for an additional Havyard832 SOV, for Dudgeon windfarm whichis operated by Statoil.

ITC Global, Intelsat,ManSat, and ViviSatexecs invited to SSPIThe Society of Satellite ProfessionalsInternational (SSPI) has welcomedChris Stott, Chairman & CEO of ManSatas its new Chairman; and BryanMcGuirk, COO of ViviSat, takes on therole of President of its Board ofDirectors.

Both are on one-year terms that startedin March 2015. At the same time, DavidKagan, President at ITC Global, andCarmen González-Sanfeliu, regional vicepresident, Latin America & Caribbeanfor Intelsat, started terms at theassociation as directors.

Havyard

The Quarterly - Marketplace RoundupStay up to date with the market on these pages in every issue. In between, get the news to your inbox as it happens:

http://goo.gl/kr3bz

4

Sunny and windy for the IoT

NEWSSUMMER 2015

Commercialising the nextgeneration of maritimesatellite terminalsIn a move to commercialise the nextgeneration of Ku-band maritime satelliteterminals, Intellian is integrating Kymeta’sthin, flat, lightweight, electronically beam-steered mTenna antennas, which are builton metamaterial-based technology.

Intellian is a global provider of stabilizedmarine satellite antenna systemssupporting maritime, offshore energy,defence & intelligence, and luxuryyachting. Dr. Nathan Kundtz, founder,President, and CTO of KymetaCorporation said that by working together,the companies could create “affordableproducts for large markets, which arecurrently un-addressable or areunderpenetrated.”

Otto Marine charters 2PSVs in multimillion dealwith global oil majorIn a three-year deal, two PSVs (platformsupply vessel) have been chartered bya global oil major in Australia. This dealbrings Otto Marine’s net order book toapprox. US$64million (AUD80million).

Michael See, group executive directorat Otto Marine said: “With the over50% plunge in oil prices, investorswere cautious with the industry as awhole. While oil companies are cuttingback on their capital expenditurebudget, certain operational activities arestill active as usual, hence there is stilldemand for supporting vessels fromtrusted business partners.”

The Quarterly - Marketplace RoundupCompany announcements can be emailed to the news desk for consideration. Send your story to

[email protected]

Hollywood helps attract skilled personnel on the high seas

A new agreement for Inmarsat Maritimemay help fill some of the downtime forcrews offshore. NT Digital Partners, a jointventure between global content agencySpafax and the world’s largest non-theatricaldistributor Swank Motion Pictures Inc., hasenabled Inmarsat Maritime to bringHollywood to the high seas via its FleetMedia service. It means that a catalogue ofinternational blockbusters and televisionprogramming, along with sports and newscontent will be available to crews at seaover the Inmarsat network for on-demand,offline viewing.

Ronald Spithout, President of InmarsatMaritime said: “This is a revolutionaryservice for Inmarsat and for the maritimesector. It has been uniquely designed tosupport the industry in attracting andretaining their skilled personnel, as it servesas a game-changing differentiating factor inrecruitment. While life at sea has historicallybeen socially isolated, this service bridgesthat gap allowing seafarers to be moreintegrated and connected with their livesashore than ever before. Fleet Media bringslife on land to those living at sea.”

In its latest paper, entitled: Energy Marketsvia Satellite, 5th Edition, NSR finds thatwhile near-term challenges do exist forsome segments of the energy market, thelong-term opportunities remain strong. Infact, in excess of US$3.8billion in retailrevenues are expected from the oil and gas,mining, and utility markets by 2024.

Leveraging traditional ground equipment inGEO, and new antenna technologies for MEO

and LEO, HTS-based services will providemore than half of this revenue, driven by thenecessity to improve remote operationswhile managing satellite connectivity costs.

Brad Grady, senior analyst at the firm andauthor of the report, said: “As we see morecapacity in new orbits, frequencies andgeographic coverage, energy market end-users are taking note.”

New tech demo centre, Houston, for O&G connectivity

A global satellite and terrestrialcommunications services provider, EmergingMarkets Communications (EMC), has expandedits offering in Texas to support oil and gascustomers. Its new office, in Houston’sEnergy Corridor at Briarpark, features atechnology demo centre where companiescan test applications – for both offshore andonshore field connectivity requirements – onEMC’s global satellite network.

The technology demo centre allows users toconnect to EMC’s C-band satellite network,using a 2.4 meter antenna that’s mounted tothe roof of the building. Companies can alsoconnect to remote sites for up to threeweeks; EMC engineers will design a pilotnetwork and collaborate with the customer’stechnical teams to commission thebandwidth to a designated field site – suchas an offshore rig or platform.

Connecting Aberdeen data centre to100Gb network for next-gen O&G project

SSE Enterprise Telecoms – a UK provider ofnetwork infrastructure and data centreservices – has unveiled plans for a newventure with cloud hosting and data centreservice provider partner brightsolid, andoffshore network operator, Tampnet.

SSE Enterprise Telecoms will install a Ciena

platform which connects brightsolid’s newAberdeen data centre to its 100Gb UK-widenetwork, enabling bandwidth and speed toservice Aberdeen’s oil and gas industry. ViaTampnet, this connectivity also has thepotential to extend to offshore oil and gasfacilities in the North Sea.

NEWS 5SUMMER 2015

HTS ‘key driver’ across energy sector over next 10yrs

Kymeta mTenna™ Prototype: Dr NathanKundtz, Kymeta President and CTO (left) andEric Sung, Intellian President and CEO.

DealsZion Oil & Gas, Inc. has entered into aMemorandum of Understanding withViking Services BV (“Viking”) to contractfor a land-based oil and gas rig, with deepdrilling capacity and crew for explorationactivities within Zion’s Megiddo-JezreelLicense area in Israel. Under Israeli law,Zion has an exclusive right to oil and gasexploration.

Victor G. Carrillo (pictured), Zion’s Presidentand COO, stated: “We are excited to joinforces with Viking Services, a respectedinternational oilfield services company whocan help provide integrated servicesolutions, with equipment and operationslocated throughout the EasternHemisphere including ongoing operationsin Israel. We believe this marks thebeginning of a lasting business relationshipin Israel with Zion and continues to build onthe operational footprint that Viking hasestablished with other energy companies inIsrael committed to the development ofonshore exploration and production of oiland gas.”

Elsewhere, Infrastructure Networks, Inc.(INET), a provider of industrial LTE wireless

broadband services to oil and gas and othercritical infrastructure industries, isdeploying a pilot LTE system in the Gulf ofMexico. The project will be used todemonstrate the superior capabilities ofindustrial LTE wireless broadband serviceand coverage, when coupled with 700 MHzspectrum, that INET has leased fromVerizon Wireless under the LTE in RuralAmerica program. Partners teaming withINET on the LTE pilot include Alcatel-Lucent, BlackHawk Datacom and L&MBotruc Rental.

Game changer for companies andpersonnel operating in the GulfTarig Anani , CEO of InfrastructureNetworks, said: "We have seen greatsuccess with our onshore business, andwith the need for additional bandwidth,

real-time connectivity, and the reliability ofour Industrial 4G LTE network, oil and gascompanies have been requesting that weexpand our coverage offshore. Ourpartnership approach to the Gulf of Mexicowill allow us to leverage the value andexpertise of our partners to deliverunrivalled high-speed bandwidth and lowlatency connectivity across a securenetwork."

One of the major advantages of LTE is itsability to provide wireless broadbandservice to moving vessels. Stanley Hughey,chief strategy officer of InfrastructureNetworks, said, "During our study ofexisting communications options in theGulf of Mexico it became apparent thatsurface vessels operating offshorerepresented a large un-served market.”

Viking CEO, Dustin Guinn, (left) signs MOU with Zion President, Victor Carrillo (right).

Comms News

6 NEWSSUMMER 2015

MarketsManaging intelligence in remoteenvironments, on top of all the regulations,could become a little easier followingAVEVA’s collaboration with EMC Corporation’sEnterprise Content Division. The two entitieshave created an integrated software solutionfor the management and control ofengineering data and associated documents.

The Documentum EPFM suite addressesinformation management challengesthroughout a project, plant or assetlifecycle - from design and construction ofnew facilities, to operations andmaintenance and eventual decommission.

Empowering customers togain new levels of efficiencywithout compromising safety

and compliance

“Effective management and control ofasset information is critical to the successof major capital projects and efficient assetoperations,” said Chris McLaughlin, CMO,EMC Enterprise Content Division.” Bybringing together AVEVA NET and the EMCDocumentum EPFM solution suite, OOs

and EPCs can quickly relate data anddocument information, empowering customersto gain new levels of efficiency withoutcompromising safety and compliance.”

Getting that information in and outof these places in the mostefficient, secure, and reliablemanner is also a challenge.From a satcoms enablement perspective,Intelsat and Kymeta have joined forces,pairing Intelsat’s EpicNG® Global HTSsatellite platform with Kymeta’s highperformance metamaterials antennas, toaccelerate and simplify access to cost-effective satellite options for a range ofapplications, an important progressiongiven the multiple opportunities openingup for connected mobility.

The exclusive development agreement isexpected to lead to a range of antenna andterminal products across verticals such asmaritime and aero mobility, contentdelivery and wireless backhaul applications.

Further, there are opportunities to reachinto new verticals such as the Internet of

Things (IoT), machine-to-machine (M2M)and ground transportation, which areexpected to experience significant demandover the next 10 years. Seattle-based,Kymeta also struck a deal with AirbusDefence and Space to touch thecommercial shipping sector.

And Quicklink TX, a broadcast qualitysolution for Skype, has been tested andapproved under Inmarsat’s CertifiedApplication Partner (CAP) programme.Although Quicklink TX was designed forthe media sector, certification forInmarsat’s global network enablesextended reach into other Enterprisesectors, including the energy industry.

“Exposing our network to a wider group oftechnology partners creates anenvironment of innovation that will lead totailored solutions for our Enterprisesectors,” said Nadeem Khan, head ofenterprise applications enablement, marketstrategy and development, Inmarsat.“Quicklink TX is a perfect example of asolution that, when combined with ournetwork, adds significant value for ourcustomers”.

Comms News

NEWS 7SUMMER 2015

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Join 150+ data-driven engineers and execs in Houston this June:

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flash comms contracts Q1 2015

NEWS 9SUMMER 2015

Vendor name Client name Nature Destination Details Date

O3b Networks Speedcast International Ltd Satellite Papua New Guinea Agreement to provide capacity via MEO constellation. Jan-15RigNet Timas Munaicom TOO (Munaicom) Satellite Kazakhstan Acquisition of 49% in shares to provide remote regional comms services,

and further expansion in Central Asia. Jan-15SES ITC Global Satellite Worldwide Deal to connect oil and gas operations around the world. Jan-15Redline Undisclosed Satellite, Cellular Middle East US$2.6m deal to implement a wireless network for one of the largest oil

producers in the Middle East. Jan-15Marlink VSAT Services Van Oord Satellite Rotterdam Contract to provide high-end VSAT services for a fleet of 30 vessels. Jan-15Gilat Satellite Networks Delnet International Corp Satellite, Wireless Philippines Agreement to provide a SkyEdge II network for 3G & GSMLtd (GILT) cellular backhaul for SMART Communications. Feb-15Kymeta Corporation Intelsat S.A. Satellite Undisclosed / Collaboration to design & produce flat, electronically steerable Ku-band

Confidential mTenna satellite antenna solutions. Feb-15Nanyang Technological Thales Alenia Space Satellite Singapore Collaboration to develop innovative concepts & technologies for smallUniversity satellites. Feb-15Aviat Networks Inc Undisclosed Satellite, Wireless Worldwide Deal worth approx US$9m to provide all-indoor IRU 600 microwave

radios & turnkey integration services. Mar-15Gilat Intelsat Wireless Worldwide Partnership enables rapid deployment and high quality 2G/3G cellular

connectivity to mobile network operators. Mar-15Global Data Systems Mid Southern Technologies Satellite, Wireless Worldwide Acquisition agreement. Mar-15O3b Networks Golis Telecom Satellite Somalia Multi-year deal to deploy a trunking solution. Mar-15O3b Networks Hormuud Telecommunication Satellite Mogadishu & Somalia Agreement to deploy a unique satellite network connectivity. Mar-15Inmarsat Cobham SATCOM Satellite, Wireless Worldwide New contract for use of Explorer 3075GX & Explorer 5075GX terminals

on the Global Xpress network. Mar-15Inmarsat Applied Satellite Technology Ltd (AST) Satellite, Wireless Worldwide Agreement to provide GX services. Mar-15Inmarsat Speedcast Satellite, Wireless Worldwide New VAR contract. Mar-15Intellian Kymeta Corporation Satellite Worldwide Partnership commercialises world-class next generation Ku-band

maritime satellite terminals. Mar-15Level 3 Communications Undisclosed/Confidential Satellite, Wireless Worldwide Deal enables unified communications and collaboration applications to the CloudConnect ecosystem. Mar-15Marine Atlantic Imtech Marine Canada Wireless Canada New deal to replace ship-to-shore wireless communication system. Mar-15O3b Networks AvL Technologies Satellite Undisclosed Contract to provide transportable terminal antenna for MEO satellite

network. Mar-15O3b Networks Presta Bist Satellite Africa Multi-year deal to provide trunking services. Mar-15Rajant Undisclosed Wireless Undisclosed Agreement to expand the flagship private wireless technology network. Mar-15SatLink Communications Undisclosed Satellite Israel Acquisition of NovelSat NS300 satellite modems to enhance the satellite

communications solution. Mar-15SES SkyStream FZ LLC Satellite Middle East Partnership to expand capacity to deploy VSAT networks. Mar-15SES X2NSAT Satellite North America Contract to double Ku-band capacity aboard the SES-2 to power new

generation ST4G™ broadband service. Mar-15SpeedCast International Ltd Hermes Datacommunications Satellite, Wireless Undisclosed Definitive acquisition agreement. Mar-15

International LtdSpeedCast International Ltd Thuraya Telecommunications Co Satellite Worldwide A distributor agreement to provide satellite mobility solutions. Mar-15O3b Networks Telesom Satellite Somalia Multi-year agreement to use the 'Fibre in the Sky' satellite network. Mar-15

Rank 2015 Rank 2014 Brand Domicile Brand Brand Brand Brand Brand Value 2015 Rating 2015 Value Value 2014 Rating(USDm) Change (%) (USDm) 2014

1 1 Cisco US 23,217 AAA- 12% 20,784 AAA2 2 Huawei China 11,621 AA 33% 8,721 AA-3 3 Ericsson Sweden 9,157 AA+ 24% 7,406 AA+4 4 Qualcomm US 4,994 AA+ 15% 4,337 AAA-5 5 Alcatel-Lucent France 3,881 AA -10% 4,331 AA-6 6 ZTE China 3,437 AA -2% 3,515 AA-7 7 Nokia Finland 2,212 AA- 9% 2,032 AA8 9 Juniper Networks US 1,503 AA 12% 1,339 AA-9 n/a Corning US 988 AA+ 9% 905 AA-10 8 Harris US 963 AA -37% 1,530 AA-

World’s most valuable telecoms infrastructure brands

Source: Brand Finance

Industry Movers

Havyard Group ASA delivers design and equipment packages to shipping companies and shipyardsin Singapore, India and China, as well as building ships for an Indian shipping company at thegroup's yard in Norway. In addition to Havyard Far East Pte. Ltd. in Singapore, Havyard also has anoffice in Shanghai in China.

Hallvard Fosnavaag has recently been appointed head of Havyard Far East and will be responsiblefor the markets in Asia (with the exception of China) and the Middle East. Around the same time,Lasse Stokkeland commenced his new role as the executive VP for the Ship Technology businessarea for Havyard Group ASA.

Hallvard Fosnavaag, (left) has been appointed as the new head of Havyard's office in Singaporeand will be responsible for the markets in Asia and the Middle East.

New leaders, job creations, and expansion

Havyard increases Asia focus

David

Wigglesworth

Tim

Johnson

Appointments boost M2M and Enterprise at Inmarsat

PCTEL, Inc., a leader in Performance Critical Telecom solutions, has promoted Rishi Bharadwaj to vice president (VP) and generalmanager (GM) of its Connected Solutions business. Connected Solutions includes the company’s antenna products, RF ancillaryequipment, and Site Solutions product lines which generated more than $72 million in 2014.

Bharadwaj, who holds a patent for measuring data quality in wireless communication networks, and most recently served as VP ofglobal sales for the company’s antenna product line. Prior to PCTEL, he developed data collection and data analytics tools for thecellular industry at Safco Technologies, and then at Agilent which later acquired Safco.

New VP and GM for $72M Connected Solutions

The leading trade association for the UK offshore oil and gas industry has invited Deirdre Michie tobe its new chief executive. She joins Oil & Gas UK, in Aberdeen, at a crucial time for the offshoresector; the trade body is currently spearheading industry collaboration on cost reduction andefficiency initiatives.

Michie’s career, previously with Shell, includes senior UK and global upstream and downstreammanagement positions. She takes up the helm from 1 May 2015, replacing the current chiefexecutive, Malcolm Webb, who retires at the end of that same month.

Company co-chairman, Trevor Garlick, Regional President - BP North Sea, said he was verypleased by the appointment. “Deirdre Michie’s strong oil and gas industry background will helpher represent the broad spectrum of our membership, whilst also providing the strategic thinkingand direction the industry needs from its trade association, especially in these challenges times.

Deirdre Michie, chief executive

Cost reduction & efficiency on the agendafor new CEO, Oil & Gas UK

10 NEWSSUMMER 2015

Inmarsat has appointed Tim Johnson as head of Enterprise Market Strategy group; and DavidWigglesworth as leader of its M2M division. Johnson was previously executive director of IridiumCommunications’ land-mobile business where he was responsible for more than US$150m revenue, aswell as the global distribution of its handheld products and services. Wigglesworth also joins from Iridium.Between 2013 and 2015, he was VP and general manager for the Americas & Global M2M Services.

“It gives me great pleasure to welcome both Tim and David to Inmarsat and the Enterpriseleadership team. With their impressive industry backgrounds, extensive product and M2Mexperience, they are both excellent additions,” said Greg Ewert, President.

NEWS 11SUMMER 2015

Industry Movers

Toshiba has chosen Ali Azad as the first President and CEO of Toshiba America Energy SystemsCorporation (TAES). He will be responsible for overseeing the establishment and operation of thenew company, which begins operations on 1 April 2015 employing some 500 people.

Previously, Azad was President of BHI Energy directing the company’s overall growth strategy,business development, mergers and acquisitions and joint ventures. Azad holds a bachelor’sdegree in Mechanical Engineering from Georgia Institute of Technology, and a Master of BusinessAdministration from Wake Forest University in North Carolina.

TAES is a recently formed US-based company integrating: Toshiba International Corporation’s (TIC)thermal and hydro power business, Toshiba America Nuclear Energy Corporation’s (TANE) steamturbine and generator (STG) business for nuclear power systems, and Westinghouse ElectricCompany’s (WEC) STG business for nuclear power systems.

Ali Azad, President and CEO

Toshiba Energy Systems Corp hires first President & CEO

Christophe De Hauwer has been appointed by the Board of Directors of SES as chief development officer (CDO) and member of thecompany’s Executive Committee, effective 1 August 2015. Having held several positions over ten years at SES, overseeing strategicmarketing, strategic and business planning and corporate development, he currently oversees the overall optimization of the entire SESsatellite fleet and its future development.

De Hauwer played an instrumental role in the acquisition of New Skies (2005), the GE share redemption (2007), and the investment inO3b Networks (2009). The Belgian national and holds an Engineering degree and a PhD in Engineering from the University of Brusselsin Belgium.

SES appoints new chief development officer

News of two promotions at Intelsat as Stephen Spengler officially steps into his role as CEO. Thefirst, Kurt Riegelman has been named SVP for sales and marketing, assuming leadership forproduct management, marketing and global sales initiatives. Previously SVP for global sales, Kurtwill help Intelsat to streamline and accelerate its go-to-market strategy to broaden its reach ofexisting and new applications.

And in a newly created position, Michael J. DeMarco has been named SVP of operations, leadingthe company’s network engineering, network operations and information system teams, includingthe company’s eight global teleport operations, effective immediately.

He will be responsible for Intelsat’s information system strategy and for the delivery of thecompany’s end-to-end service portfolio, including the integration of the Intelsat EpicNG® platform,the first satellite of which is expected to launch in early 2016.

Kurt

Riegelman

Michael J.

DeMarco

Intelsat ramps up exec team

Mobile Satellite Services (MSS) operator, Thuraya Telecommunications has strengthened itsmaritime team with the appointment of Keith Murray as maritime product manager, based inDubai. Murray’s key tasks are to increase the penetration of the Orion IP maritime broadbandterminal, and oversee the commercial roll-out of the new Atlas IP broadband terminal.

He will work with maritime market development manager Leticia Diaz Del Rio, and maritime salesmanager Phoebe Wang as the company continues to provide robust communications to maritime,shipping, and offshore markets.

Murray joins from Airbus Defence and Space where he was responsible for managing the lifecycleof products and systems in the naval satellite communication segment. He has a degree inElectrical and Electronic Engineering from Heriot-Watt University.

Thuraya adds to maritime products division

Keith Murray, maritime product manager

May 12 – 13 2015The Aberdeen Meeting 2015: Big Oil, Big Data – North Sea, Arctic & Atlantic Margin brings the GVF-EMPOil & Gas Communications Series to its 24th event, and to the eighth annual conference in the global Seriesto address the communications networking imperatives of the European continental shelf region of the global‘oil & gas patch’. The continually strengthening rationale for a Europe-oriented oil & gas communicationsevent lays in longer-term pressures for hydrocarbons sourced from beyond the boundaries of the North Sea.

URL: www.uk-emp.co.uk/current-events/o-g-comms-aberdeen-2015

May 19 – 21 2015From Barcelona, Spain, the 17th Critical Communications World, incorporating TETRA World Congress,will welcome those at the very heart of the global Critical Communications community. Bringing internationalusers, operators, developers, and manufacturers together, the congress will address the development anddelivery of effective mission critical communications. Available on site: 200+ presentations, discussions andseminars on commercial critical communications usage and public safety; 4000+ participants; and 130+exhibitors showcasing the latest equipment and solutions.

URL: http://criticalcommunicationsworld.com

May 26 – 27 2015Enterprises, ISPs telcos and partners are under huge pressure to capitalise on the vast opportunities in theAfrican market, before their competitors do. This means that they need to diversify their product offerings,streamline operational processes, improve network infrastructure and source the most reliable and innovativesolutions. Connected Africa is the leading marketplace and ideas exchange for enterprises, ISPs telcos,government, leading consultants and solution providers. Co-located with: SatCom, MetroNetworks,

Broadband, CarriersWorld, and Rural Telecoms.

URL: http://www.terrapinn.com/exhibition/connected-africa/

May 26 – 28 2015Join leading mobility experts to discover how to use mobile applications to enhance business and operationalprocesses in the oil and gas industry. Major oil and gas operators and contractors, including Baker Hughes,Whiting Oil, Consol Energy, ExxonMobil, Chevron, Halliburton and Cenovus, will address these challenges inHouston, TX. Register at www.oilandgasmobility.com, or email [email protected]. QuoteOGMOffcomm to claim a 15% discount today!

June 16 – 17 2015 The Data Driven Production Optimization Conference is the industry-leading forum in which experts in thefield of production and operations data and analytics gather to share strategies to use operational dataeffectively to increase efficiency and improve production rates in your operating assets. With ConocoPhillips,Hess, Anadarko, BHP Billiton all confirmed to share their data driven best practices - this is the one digitaloilfield forum not to be missed this year.

URL: www.upstreamintel.com/data-driven-production-optimization/

August 27 – 29 2015East Africa, specifically Tanzania, has become the focus of attention as a source of new global gas supply.Large amounts of foreign funding has been invested in the Tanzanian oil and gas industry after its discovery,making East Africa the next lucrative market in the international scenario. This event will be the hub for keyplayers in the O&G industry, attracting leading oil, gas and petroleum companies from around the world.

URL: www.expogr.com/tanzania/oilgas/

Diary Dates

View more about these events via our Partners page at http://offcommnews.com/partners. To maximise yourpresence at any of these events get in touch with our special projects division via [email protected]

12 NEWSSUMMER 2015

REMOTEINSIGHTREPORTSMARTERDIGITAL OILFIELDS

NEWS

NEWS 13SUMMER 2015

Remote Insight Report


digital oilfield

14 NEWSSUMMER 2015

ffective communications are essential to effectiveworking, and there are a number of differentapproaches on offer that can save money for remote oiland gas exploration at a time of low oil prices. Betteruse of satellite bandwidth, for example, might makeyour satellite communications investment go further.

Which is the claim of SpeedNet from EMC — Emerging MarketsCommunications — a provider of hybrid global satellite andterrestrial communications. This cloud-based browser enablesfaster browsing over satellite, and uses less bandwidth. “As aresult,” says Hadassa Lutz, EMC’s President of Energy, “thecorporate network performs faster, without increasing data rates,thereby reducing costs.”

SpeedNet combines both a local and a virtual browser into a singleplatform. This allows the cloud servers to do the ‘heavy lifting’ andrelies on the client software to intelligently switch between localand cloud.

Another EMC technology that optimizes the performance ofsatellite connectivity is the Noise Reduction System (NRS). Thisenables a more efficient conversion of Mhz to Mb, improving theperformance and lowering the cost.

Not surprisingly, as a managed connectivity service provider, EMCis keen to promote communications investment. As Lutz says:

“Communications is a vital component of an offshore project andshould be maintained, even during unstable market conditions.”

Joe Spytek, CEO at ITC Global, whose offering includes end-to-end satellite-based networking solutions for remote, difficultenvironments, says his engineering teams “custom-design networksolutions based on each client’s specific requirements…becausewe understand that every exploration, production and drillingoperation has a different set of challenges.”

So where do the savings come from? ITC Global, says Spytek, “continues to streamline the way wepurchase space segment, which strengthens our ability to drivefurther efficiencies and develop cost-effective solutions for ourcustomers.” However, he is clear that cost efficiencies won't meanless data use. “Demand for bandwidth will continue to grow, as willdemand for efficient, reliable communications solutions,” he says.

In some parts of the world, of course, rigs can use fibre optics. Butthis can be an expensive investment even if you don’t own theactual network. There need to be other savings involved.

An example of such savings comes from Colin Sempill, managingdirector at SSE Enterprise Telecoms, a provider of networkinfrastructure services. He explains that in the past the limitationsof satellite communications for some operators of oil and gasplatforms in the North Sea meant that IT systems were placed on

One of the few areas in which oil and gas companies may consider investing more, rather than less, money in adownturn is communications — on the basis that the right sort of communications efficiencies can save moremoney than they cost. But what are the right sort of communications efficiencies? Vaughan O’Grady investigates.

E

EMC enabled, theCeona Amazon


NEWS 15SUMMER 2015

the rigs. Data analysis took place ‘on-rig’ so that onlysummary information needed to be sent back to themainland.

But there is now an alternative. “SSE partner,Tampnet [operator of the largest offshore highcapacity communication network in the world], hasinvested in a sub-sea fibre optic network that connectsmore than 100 offshore oil and gas platforms back tothe mainland in Aberdeen,” says Sempill. Hecontinues, “SSE Enterprise Telecoms provides theonshore connectivity to connect the offshore networkinto Aberdeen city and to the new brightsolid datacentre, and further provides onward fibre connectionsto oil and gas firms in the city itself.”

Richard Higgs, CEO of cloud hosting and data centregroup brightsolid, adds: “Our aim is to provide acollaborative platform for the industry whereorganisations can securely and cost-effectively sharedata whilst making sense of it.”

Sempill explains further: “The huge capacity availableallows oil and gas firms to relocate server and storageequipment from rigs into the brightsolid data centre,without performance penalty, and at an affordablebandwidth cost. It also offers a great opportunity forconsolidation of equipment supporting the multiple rigsin the data centre and greatly lowers operating andsupport costs, as onshore service provision costs lessthan offshore.”

Savings are also claimed by Redline

Communications, a creator of wide-area wirelessnetworks for challenging locations and mission-criticalapplications including, of course, oil and gascompanies, which are further supported by a team ofHSE-certified experts experienced in wireless and oiland gas operations.

More and more applications to improve operations becomeapparent as networks are deployed

Leigh Chang, VP marketing for Redline, cites a numberof positive impacts of networks and network-basedtechnology in this context. They include increasedproduction and greater efficiency, as well as improvedworker safety and well-being. For example, real-timeseismic drilling can be supported and enhanced byallowing data to move to and from sensors at the drillsite, while multi-purpose networks at a drill site(offering voice, video and delivery of data to remoteexperts as well as universal access to businesssystems and documents) allow teams to collaborateregardless of their locations.

In addition, both remote monitoring of well sites andthe ability to adjusting production parameters remotelyin response to data minimize cost, reduce travel,increase efficiency, and improve worker safety. Chang,like Spytek, feels that there is no indication that the

amount of data produced will decrease. “In fact,” headds, “more and more applications to improveoperations become apparent as networks aredeployed.”

Making smart oilfields even smarterArria NLG, by contrast is also about efficientcommunication but of a rather different sort as thecompany’s description of its area of expertise —natural language generation — indicates. Itstechnology is, as Arria NLG's SVP of businessdevelopment, John Bell, puts it, about acceleratingworkflows “by getting to the language element ofinformation much, much quicker”.

In the case of oil and gas, that means offering simple,easy to understand summaries of a possiblybewildering amount of data. Bell explains: “What weare doing with oil and gas companies is working withtheir key machine assets. We are monitoring thingssuch as oil temperatures, flow rates and pressures: allthe standard measures you’d expect to monitor fromequipment. But rather than taking the route of graphicsand charts the Arria NLG Engine goes straight to apiece of language.”

You don't need to spend hours studying and assessingvisualizations and then sending out a summary. TheNLG Engine can do the summarising for you. Thus,Bell suggests, “the NLG Engine goes straight to apiece of language that might say, ‘The compressor’sbeen running at a steady state for the last three hours.We've seen an increase in vibration. No problem at themoment but if it continues at this rate you’re going toneed to call in a maintenance engineer.’ It will just tellyou that rather than someone having to analyze andinterpret it for you.”

The reason this sort of offering is needed is that, whileautomated technology has reduced the need forengineers with clipboards to take down readings, theanalyses and interpretation of so much data hasarguably taken up much of the time saved. Also, asBell points out, many of the processes aroundinterpretation and analyses can be automated, becausethere will usually be only a modest number ofoutcomes and they can be fairly simply expressed.

The upshot could be not just financial savings butmuch more productive engineering staff, which ~ at atime when many oil engineers are nearing retirementand recruiting the next generation is proving difficult ~is a useful bonus.

Thus, depending on the need and application,appropriate investment can not only cut the cost ofcommunications but can make smarter oilfields evensmarter. In addition, as Spytek says of most oil and gascompanies: “Making an investment in theircommunications to develop efficiencies in theiroperations would put them in optimal position to bestronger and better prepared once the market turns.”

Richard Higgs,CEO, brightsolid

Colin Sempill,managing director, SSEEnterprise Telecoms

John Bell,SVP businessdevelopment, Arria NLG

Joe Spytek,CEO, ITC Global

Leigh Chang,VP marketing, Redline

A bump in the road for energyAs discussed in NSR’s Energy Markets via Satellite, 5th Editionreport, it may just be a bump in the road through 2016-2017, withgrowth thereafter brought about by HTS. Onshore will be hit thestrongest as crude supply and demand remain disconnected.Without clear pricing stability and an oversupply of crude andnatural gas in key markets, satellite service providers should seesome consolidation amongst independent producers.

Additionally, as crude pricing favours lower production cost fields inareas such as the Eagle Ford, the market for remotecommunications into these areas will lean more heavily towards aterrestrial-based primary communications solutions. Without thequicker drilling tempo of an $80 barrel, and activity concentratinginto the more profitable fields, the next 12 to 18 months will see adip in satcom services demand. Those rigs that continue to operatethrough either longer term contracts or more profitable operationswill likely see higher demand for data connectivity, but fewer rigsstill means less demand.

Offshore E&P is a harder marketOffshore E&P is a harder market to find a connection for, withlonger term contracts weighting more heavily as well as longer

lead-in and shut-down times dampening the link between crudepricing and satellite demand. For the offshore support vessels(OSV) market, the next few months will be challenging as seismicactivity will likely remain lower than normal, and new buildscontinue to enter the market. However, the core market – vesselson longer term contracts or providing more sophisticated services -will continue to require connectivity. And, once the marketstabilizes, more vessels will mean the upward trend will pick up inmore places.

Within the rigs and platforms sector, ultra-deepwater activity willlikely feel some impact in the near term as greenfield projects arere-evaluated. Those projects which are still on the drawing boardswill likely remain so until markets stabilize, and areas such as theArctic will slow down as cheaper oil elsewhere remains. In the coremarkets of the North Sea and the Gulf of Mexico, terrestrial optionswill play a larger role as O&G end-users stick to existing fields thathave well known quantities of petroleum and are within easy reachof existing assets.

Additionally, with a greater focus on ‘improving operations’ will alsocome a greater demand for lower latency, higher throughputconnectivity options from stabilized microwave or sub-sea fibre. Yet,the market for satcom services will remain in key markets for the

As the E&P sector turns its focus towards the reality of low priced crude oil, the overall result is agreater focus towards improving operations across the business, both onshore and offshore. Butwhat does the impact mean for satcoms in the Energy markets? NSR’s Brad Grady has beeninvestigating and shares his insight.

Everything from narrowband/M2M data to bandwidth-hungry video conferencingapplications will be brought to bear in the name of improving operations.

Improving Operations

16 NEWSSUMMER 2015


remote projects that are already underdevelopment – from near shore operations inSoutheast Asia to deep-water locations in Brazil.

There will be no getting around the impact of rigsbeing idled, especially for onshore operations inthe shale/unconventional plays. For the rigs andvessels without longer term contracts, the marketwill remain exceedingly difficult and end-users willneed to either reduce the number of activeequipment, or significantly cut day-rates. Thosesites and vessels which remain active will need tobecome leaner, more efficient operations – aprocess which typically involves more data at morestages of the well lifecycle.

Improving operationalefficienciesAny conversation within the Energy sector thatinvolves “improving operational efficiencies”implicitly means “more data.” Everything fromnarrowband/M2M data to bandwidth-hungry videoconferencing applications will be brought to bear inthe name of improving operations. However,budgets will remain constrained as IT managersare told to do more with the same ~ or less.

The satellite industry is already in the process ofdeveloping a strong solution to the ‘do more withless’, with many High Throughput Satellites (HTS)launching over the next 12 to 18 months. Fittingright into the current budget constraints of O&Gend-users, the ‘more bits per buck’ valueproposition of HTS will help offset the traditionalhesitation across the energy sector of adoptingnewer technologies. The satellite communicationssector continues to recognize this, and continuesto announce new HTS-enabled satellites acrossC/Ku/Ka bands in all corners of the globe, withfootprints mirroring existing FSS coverage beingonly a question of ‘when’, not ‘if’.

With more capacity in the sky, and more pressureson the ground to reduce cost and improveoperations, HTS-enabled services will become acore component of the remote energycommunications puzzle. Although traditional FSSwill remain (and grow as activity picks up again),the focus on improving operations and the bottomline will be a strong motivating factor for a quickerthan usual adoption which will make the currentdownturn merely look like a bump in the road forthe satellite industry.


Brad Grady, NSR

18 NEWSSUMMER 2015


T

he future for the digital oilfield is to deliver businessefficiencies, by bringing the field to the operator ~rather than the operator to the field. Underlying anydigital oilfield is an integrated communications systemthat is reliable, resilient, cost-effective, robust, andsecure.

Oil and gas producers are facing challenges in controlling costs,locating new, harder-to-reach sources, meeting increasingly-stringent regulatory and environmental guidelines, as well asdeveloping and maintaining business in politically unstablecountries. Oil companies also face a volatile market, so they needto work smarter. By unifying their critical communications, theystand to gain: greater coverage, more efficient operations,increased end user productivity and safety, increased cost savings,enhanced interoperability, and greater resiliency. That’s a big list.

Facing up to the digital challenge Oil and gas producers face a volatile market, challenges incontrolling costs, locating new, harder-toreach sources, meetingincreasingly-stringent regulatory and environmental guidelines, aswell as developing and maintaining business in politically unstablecountries.

Oil companies are investigating the concept of a Digital Oilfield, tointegrate their business operations using advances incommunications technology. But no single technology can fully

service this integration, when companies must consider cost,coverage, spectrum availability, bandwidth, latency, ease ofdeployment, and flexibility.

The solution lies in unifying multiple technologies: an integrated mixof different communications technologies, ranging from VSATsatellite, to WiMax or LTE broadband, to WiFi, cellular, and digitalLMR, each with its own strengths and weaknesses.

The digital oilfield and the IoTThe Internet of Things involves physical devices communicatingdirectly with each other - machine-to-machine - without humanintervention. In the digital oilfield, smart elements such as sensors,measuring devices, and actuators embedded in drills or wellheadsexchange data in real time, so they can be monitored, integrated,configured, optimized, and managed; even manage themselves. Awireless network connects these elements, and, utilizing purpose-built applications, sends their combined and integrated data toservers for storage, retrieval, processing and analysis.

Millions of smart elements can be sending real-time data 24/7, sodatasets and data flow can be huge. Since a single rig can generateone terabyte of data each day, the total amount of data that passesthrough a digital oilfield can be potentially petabyte-sized (1015bytes) or larger per day.

In the near future, extraction companies will be rethinking the plethora of single-function bearers and applicationsthat many exploration and extraction companies currently operate, by Dr Jan Noordhof for Tate Limited.

Communicating in the Digital Oilfield

T

Dr Jan Noordhof,principal consultant,Tait Limited

“Underlying any digital oilfield is an integratedcommunications system that is reliable, resilient,cost-effective, robust, and secure.”

NEWS SUMMER 2015

The digital oilfield manages the actual field digitally, largelyautomatically, and in some cases, fully remotely. In a control room,personnel see and interact with an accurate virtual representationof the field and all its components. Field data is processedcontinuously in real time, with applications automating decision-making, performing predictive analyses, reacting to alarms, andmonitoring and controlling production process – with or withouthuman intervention.

Remotely controllingoperations in real-time The degree of real-time control that operators can exercise isremarkable. For example, with Remote Drilling, data such as bitRPMs, circulation solids, and downhole pressures are captured by aMeasurement-While-Drilling (MWD) system, integrated, Logged-While-Drilling (LWD), and sent to an operator who can remotelysteer the downhole tools. The result is more accurate drilling,optimized path and drilling processes in real time, and significantlyless reliance on specialists and service personnel onsite inisolated locations.

Capabilities of the digital oilfield include: SCADA networks thatdirectly manage facility process systems e.g. by controlling pumpsand valves; Real-time surveillance of production systemperformance and reservoirs; And, on-site field staff and offsiteexperts collaborating remotely to share information via voice,data, and real-time video, to improve the quality and speed ofdecision-making.

What lies ahead for the digital oilfield Estimates from the recent digital oilfields World Summit suggestthat in 2015, the digital oilfield services market will have grown by40% to more than $3.18 billion. The bottom-line benefit ofdeploying these services is projected to be a 25% increase in thenet present value to: reduce E&P costs and shorten schedules;raise productivity; slash downtime (which can cost up to severalmillion US dollars per day); make better use of the shrinking pool ofexperienced technical staff; improve worker safety and health;extend the lifetime of ‘brown fields’ (which previously would havereached the end of their economic life); undertake more complexprojects to access reserves in difficult environments.

Dynamic communications It’s not just oil or gas field exploration and extraction operations thatstand to benefit from the real time communications network either.The field activity, associated with these operations, can benefitsignificantly from dynamic communications networks. For example,for Hydrocarbons delivery and quality: Instrumentation, SCADA,project management and field automation; Safety and security:Emergency communications, go-ahead message broadcasts,access control, as well as environment monitoring and videoprotection; and for Operations and living: where workforcemanagement and collaboration, cyber security, infrastructuresupervision, control centre, and employee infotainment come into play.

The vital role of telecommunicationsUnderlying any digital oilfield is an integrated communicationssystem that is completely reliable, resilient, cost-effective, robust,and secure. Field telecommunications are critical to the success ofdigital oilfield services. Here’s a checklist of considerations:

1. All devices in the digital oilfield must be physically robust including communications equipment. They must comply with UL/cUL C1D2, ATEX Zone 2, IECEx, DNV, and ABS hazardous and environmental standards.

2. Network design must guarantee high availability with end-to-end redundancy, since the efficiency consequences and economic cost of an outage is substantial.

3. Network architecture must be flexible to adapt to the differing requirements at each phase of an E&P project. For instance, mobility requirements will be highest for onshore exploration and high for offshore exploration, but diminish considerably during production.

4. Field backhaul and field access communications require a mixture of wired and wireless connections due to performance requirements, geographical location, cost etc.

5. The architecture must integrate the wide variety of technical requirements presented by each element – from drilling rigs to operation centres and enterprise systems.

6. The digital oilfield is built around big data management. The network may need very high bandwidth connections capableof transferring large datasets continuously.

7. For monitoring and control, the network may need to support connections with very low latency connections – that is, 35 milliseconds or less.

The digital oilfield services marketwill have grown by 40% to more

than $3.18 billion this year.


19

News

NavPort, a data analytics solution provider for the unconventional oiland gas industry, has brought out a mobile app. It’s free to use andoffers a convenient way to create visualizations of drilling andcompletion data ~ from a mobile device.

Available for download in the Google Play and Apple stores, itenables users to explore drilling and completion activity in the U.S.and Canada, gleaning market intelligence and competitive insight,to the benefit of: business development, completion engineers,supply chain or logistics professionals, and even investment analysts.

Features include: creating quick data summaries and mapvisualizations; analyzing of market share data and trends incompletion activity; identifying key relationships between wellservice providers and operators; determining strategic customerand geographic growth opportunities; and evaluating potentialproppant and/or chemical distribution points.

Better decision making forunconventional oil and gas – via app“Launching the NavPort Mobile App was the nextlogical step in our continued efforts to better provideadvanced data and analytics to industry professionals,”said Eric Foster, president of NavPort.

“We pride ourselves on delivering business information that helpscompanies active in unconventional oil and gas make betterdecisions, and our new mobile tool delivers analytics on the go. In achallenging oil price environment, companies need access to datain the field in addition to that provided by our award-winning webanalytics application.”

www.navport.com for more information on NavPort and theNavPort mobile app.

NTT Communications enters global M2M / IoT marketFor those able to utilise mobile networksfor operations, NTT CommunicationsCorporation* (NTT Com) has extended itsglobal M2M portfolio. The service, ArcstarUniversal One Mobile, now combinesglobally integrated mobile networks withNTT Com’s virtual private network foreconomical and secure M2M connections.

Arcstar Universal One Mobile offers theglobal M2M footprint vital to global andcross-border M2M business. Low-cost dataand SMS services will be available throughpartner mobile networks in some 200countries, including APAC and major

industrial nations, where theM2M / IoT market is expected togrow. By offering a global SIMthat is pre-provisioned and readyto use, NTT Com will reduce thecomplexity of installing anddeploying M2M.

For security, the system connectsdirectly to the mobile networks ofNTT Com partners. This meansthat data from devices is transmittedsecurely without going across the internet.Seamless, secure connection to NTTCom’s cloud computing service for M2M

data storage and application developmentwill be provided at no additional cost.

*An ICT solutions and international communicationsbusiness, within the NTT Group

20 NEWSSUMMER 2015

Analytics on the go

Founded by former Schlumberger executivesCliff Anders and Phil Marlar, Leosat LCC hasbeen developing network architecture,spectrum planning, and satellite payload since2013. This low earth orbit (LEO) satelliteconstellation will provide worldwide coverageand sets new standards in satelliteperformance.

The company has just chosen Vern Fotheringham as its chiefexecutive officer. Fotheringham was most recently Chairman andCEO of Kymeta Corporation, and has collected more than 30 yearsof experience in the broadband wireless and satcoms industry. Hisrole is to introduce Leosat to the global satellite industry, theinternational financial community, and the customer market for arange of new services.

“This is an exciting time in the satellite industry, with technologydriving increased demand, costs coming down and several notableplayers such as Google, SpaceX and OneWeb helping to fuel the

category,” said Christopher Baugh, president and founder of NSR, asatellite industry consulting company. “Leosat is positioning itsservice offerings primarily on potentially lucrative business andgovernment market opportunities. There is a big internationalmarket to be served by a unified global broadband network withsignificant revenue potential at stake.”

Elsewhere, Emerging Markets Communications (EMC) acquiredGeneral Industry Systems (GIS) AS, a Norwegian-based providerspecialising in energy and maritime connectivity services foroffshore operations.

EMC enables connectivity and systems integrations services tosupport a variety of offshore assets including platform rigs, FPSOs,jack-ups, drilling ships, semi-submersibles and offshore supportvessels. The consolidated portfolio of products, services,experience, locations, and engineers of both companies willstrengthen EMC’s energy and maritime business segments on aglobal scale.

Leosat announces intentions, and EMC acquires GIS

Vern Fotheringham

NEWS

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22

INTERVIEW EXCLUSIVE:

OCN: So, in your opinion, what do customers want from their

remote networks today?

BL: When operating at the edge of the network, clients want toensure continuity of operations/comply with regulations; safeguardthe safety and integrity of their people and assets; and make theiroffshore and remote locations just like any other office. The mainmarket areas impacted by network disparity include: maritime,offshore oil & gas, and the military, as well as mining andconstruction ~ particularly in developing countries.

OCN: How does iOra define the network edge?

BL: We define it as a breakdown of the expected norms of servicelevels for corporate and internet services; whereby bandwidth isbelow that required/desired, is unreliable; where latency can riseand make networks unusable; or where network links becometotally unavailable.

While network bandwidth is indeed increasing, so is the volumeand complexity of applications, data, and regulatory requirementsrequired for exploration and mining. In the maritime industry, theincrease of regulations for operations, Safety ManagementSystems, crew welfare, digitalisation of vessel systems, and routeoptimisation all demand an increasing flow of information.

OCN: Where does iOra come in?

BL: iOra ensures that critical corporate data is replicated to thelocations where it is required ~ ready to be accessed by those whoneed it ~ even when the link goes down. Through smart, patentedmathematics and logic we are able to synchronise terabytes of dataover satellite, RF, GSM, and WiFi links. The files are so small theycan “thread the camel through the eye of the needle” so to speak.The efficiency of the network link becomes optimised in terms ofcost ~ and the volumes of data are dramatically reduced.

OCN: Can you explain further with some examples?

BL: Sure. We’re helping a major independent oil company ensurethat its upstream emergency response plans are up to date to thefield. We also have two tanker fleets synchronising SafetyManagement Systems from the shore to the vessels. A majordrilling company is synchronising well logging data from the field toHQ to support decision making between head office and the fieldteams concerning well status and production levels. We’re alsoworking with a Middle Eastern National Oil Company to replicatedata and CAD drawings from its Engineering Data ManagementSystem to/from its offshore rigs in SE Asia.

OCN: What are the potential consequences of documentation

not being in place at the right time?

BL: When an investigation into an incident starts, it examines if alllaws and regulations have been adhered to, which comes down tothe question: “Was everything that could reasonably be done,done?” Failure to do so can cause fatalities, shutdowns,impounding of vessels and equipment, fines and evenimprisonment. Anticipating the impact of unpredictable networkissues can act like an insurance policy in these instances.

OCN: Do you have any advice for the industry?

BL: If conditions are sufficiently extreme all wireless network linkscan be found wanting. By planning ahead for possible networkoutages iOra will pre-provision critical information where it isneeded ~ be that every five minutes, every day, or every month.

Increasing engineering complexity and regulatory requirements are

combining to present the Oil & Gas sector with unique challenges at the

edge of the network.

The oil and gas sector is rife with regulations ~ with good reason. Thechallenge is ensuring that the right people have access to up-to-date datawhenever it’s required. Failure to do so can run up thousands of dollars perday in NPT. Georgina Elrington spoke with Bob Legg, business manager forOffshore Markets at iOra (pictured), to find out what can be done toguarantee the continuity of critical data.

Guaranteeing thecontinuity of critical data

Bob Legg, business managerfor Offshore Markets, iOra

www.iora.com

NEWSSUMMER 2015

NEWS 23SUMMER 2015

A new family of smartphones suitable foruse in Division 1, Zone 1/21 & Division 2,Zone 2/22 is being launched for worldwideuse, by ecom, The new intrinsically safeSmartphone Smart-Ex® 01, andFeaturephone Ex-Handy 09, can help toaddress mobile worker collaboration, safetyand security for those in hazardousindustries such as: oil & gas, refining,chemical, and pharmaceuticals.

The 4G/LTE enabled Smart-Ex® 01Smartphone helps to simplify andstreamline the way mobile workers operateand interact with each other, their remoteexperts, and the backend systems. Thishelps to enable improved decision making,reduces risk, work time and cost.Capabilities supported include man-down

alarm notification, online documents, digitalphotos video, video streaming, integratedflashlight for poorly lit areas, and interfacesto wireless headsets and Bluetooth-enabled data collection devices.

For users who need a moreadvanced mobile phone, but not asmartphone, might like the look ofthe Ex-Handy 09 Featurephone. Itprovides both push-button and touchscreen capabilities, plus theperformance and connectivity tosupport Android applications such asLone Worker Protection, Push-to-Talkand other industrial apps. The devicecan be updated to prevent malwareand other unwanted threats.

ecom’s intrinsically safeandroid 4.4 smartphoneSmart-Ex(R) 01

Intrinsically safe Android 4.4 smartphone

As 4G/LTE is increasingly adopted within hazardous areas, ecom’s Tab-Ex® helps toensure that access to capabilities is fast, enabling users with quick access to theinformation needed to perform the taskat hand.

The screen allows better visibility for complex analysis and trending charts ~ such asthose used for Condition Monitoring and Vibration Analysis. Available from ecomInstruments, the device supports operator driven reliability programs. For example, built-incameras and wireless capabilities allows equipment defects to be captured, as inspectionand maintenance work is executed, making it instantly visible to those who need todiagnose and determine follow-on actions. Further, team leaders can be notified of plantchanges from plant automation systems or drilling systems, with the ability to remotelyview (and interact with) real-time schematics.

Tab-Ex® can operate on sites with WiFi only access or no wireless access ~ dependingon carrier and regional availability ~ preventing the need for infrastructure updates. Asbefore, the latest Bluetooth standards are supported.

Larger screens for hazardous areas

Product News

New series of VSAT routers bring 50% reduction in satellite bandwidth

The ‘Series 7000’ is a new family of VSATmodems, from Advantech Wireless, designedto help operators striving for tangible, multi-service solutions. The hardware provides50%+ reduction in the satellite bandwidththanks to A-SAT-IITM Bandwidth OptimizedSatellite System technology.

The routers can support Star, Mesh, andhybrid architectures with dual modulator

and dual demodulator units for anyfrequency band (L, S, C, X, Ku, Ka).

There are multiple modem models fordifferent market applications and verticals,including: cellular backhauling, SCADA, oiland gas, enterprise and corporate, maritimeand cruise lines, in-flight-entertainment,homeland security, military and mobility.

The state-of-the-art tablet GALAXY TabActive offers IP67 Water & DustResistance, Anti-shock 1.2m Drop Test aswell as easy handling and lightweightand an auto-focus camera (with flash)for barcode scanning. Relatedaccessories and peripherals enablebroader use, and there is globalcertification for use in hazardous areas.Images: ecom instruments.

Interview Exclusive: Globalstar

reat products need a great price to help driveuptake and become successful. Jay Monroe, CEOat Globalstar is someone that clearly appreciatesthis. His company has grown six-fold since 2004,by enabling cost-effective, connected products forremote users.

“In 2004 we had 100,000 customers. Today

we have about 700,000 customers. If you

consider how that happened, against the

backdrop of all the satellite constellation

problems that were only remedied in 2013, it’s

staggering. It’s an amazing forward-march.”

OCN: So what exactly does Globalstar offer companies

working out of remote locations?

JM: Operating satellites at 14,000 kilometers, instead of 32,000 kmhigh, means that Globalstar is characterized by absolute mobility.We have made our way by delivering inexpensive solutions foreveryone ~ as opposed to very expensive options available to just afew. That’s been our bias since the early 2000s. If our customerscan afford it, they’ll use more of it. So our business is to drivedown the cost of the equipment, drive down the cost of airtime,and have people think of our remote comms enablement more likeusing a cell phone. We were also the first to create bundled plans.Users can now buy, for example, a thousand minutes a month ~which is a fixed cost to Globalstar and one that is relatively low.

“If our customers can afford it, they’ll use

more of it.”

Further, across the entire suite of Globalstar products, we wantedto increase the functionality. Configuring services from our groundinfrastructure, we brought out a series of products for tracking andemergency scenarios. Our highest profile product is SPOT whichenables the tracking of a person or an asset. It also has a globalSOS button so that, should an emergency arise, our dispatch centrecalls the closest local rescue organization to assist. In fact, SPOThas saved 3,500 people to date. We don’t care if you fell off of a rigor off a weekend fishing-trip boat; push that button and we’recoming to get you. And it only costs US$100.

OCN: That must be very comforting for those in extreme

environments. What about for assets?

JM: We have another product in the US$100 class, called Trace.When a Trace-enabled asset is stationary it doesn’t transmit. Assoon as it moves transmission starts. So, for those with remoteassets ~ like stored generators for example ~ that suddenly startmoving, you can anticipate that it’s either headed to a jobsite orbeing stolen.

The thing is, in a terrestrial wireless scenario, these devices areubiquitous because they’re inexpensive and relatively available andyou can monitor such activity with an iPhone. But you can’t do thatso well remotely, or economically, except via Globalstar. Accountingfor the oceans, about 90% of the planet has no terrestrial wirelessor other coverage at all, that’s a big market.

OCN: How do you transport that information?

JM: Okay so those tracking devices are entirely internet-activatedand internet-information delivered. For small-bit information, suchas M2M data or emergency information, the beep goes up in theNorth Sea, bounces off a satellite and then goes to our gateway inFrance. From there it’s transmitted across a proprietary networkthat connects all of our gateways, 25 of them more or less, around

AbsoluteMobility

G

For a decade, Globalstar has toiled to make affordabledevices smaller, lighter, with greater functionality forthose working in remote locations worldwide.

24 NEWSSUMMER 2015

Interview Exclusive: Globalstar

the world. That information goes through asecure and private network and gets delivered asnecessary.

Telephone calls go the same way, from the NorthSea up to the satellite down to the Frenchgateway. From there it is either dropped into thepublic switch network and delivered to thereceiver; or, more often, once that call arrives atour gateway we terminate it via VoIP, like Skype,and then deliver it to Manila or Rangoon orwherever ~ without involving the local telco.When you do it this way, the cost of that minutemight drop from a dollar to a cent, which circlesback to our core belief that if you make theproduct and the service much less expensive,more people will be able to avail themselves to it.

OCN: As we venture to drill in deeper waters,

more remote land locations, and deeper down

mines do you think technology will change?

JM: Absolutely. More and more data will bedelivered over satellite, period. Canada is a greatexample for this: 10% of it is covered by cellularnetworks. That’s all, just 10%. While that coversalmost everyone in Canada, as most live in majorcities close to the US border, it doesn’t take careof industrial activity in terms of extraction,forestry, oil and gas, mining and beyond. All ofthat takes place in the 90% of the country thatdoesn’t have cellular coverage.

Further, when you get to the sophisticated,expensive equipment to mine or drill today, thoseassets need to be monitored back at HQ.Mistakes can be expensive ~ as well asdangerous ~ so there’s a massive amount of datagoing back and forth. When you then considerthose driving thousands of miles to monitor, say,

200 sites a day and staying in overnight campsduring the process, they need a mobility optionfor voice, small-bit data, and tracking. That’swhere Globalstar makes its entire living.

OCN: What separates Globalstar in terms of

its offering?

JM: I believe that we’re different because weoffer the total package. Many other companiesare providers of the bandwidth that others buildproducts for. We operate both ways, and that isto say we operate by building and designing andinitiating our own products. As a result, we canquickly adapt to whatever the market needs. Iwant to share one such example with you,because in the world of mobility and in the worldof communications, I really truly believe that whatI’m about to describe fundamentally alterscommunications on the planet.

OCN: That’s a big statement, please do tell

us more.

JM: It’s a device called Sat-Fi 2, which won’t bereleased until the beginning of 2016 when ournew ground infrastructure can see it. And that willhappen thanks to new chip architecture, amongstother elements. It’s about the size of a computermouse and will turn anybody’s cell phone, laptop,tablet, in fact any device that has WiFi in it, into asatellite phone.

Imagine a little town on a tiny island in Indonesiawhere anybody, with a smartphone and this newdevice, will be able to communicate for the firsttime over satellite where no terrestrial networkexists. You can fundamentally altercommunications on the planet with that. It’s alogical progression ~ and an amazing one.

Globalstar’s technology enables government, oil& gas, marine, natural resource, and emergencyresponse users to stay connected when cellularcoverage is not available.

Available now, Sat-Fi is a powerful satellite‘hotspot’ that enables up to eight users at oncevia their own tablets and smartphones.

Boasting affordable, mobile satellite data speeds4x faster than other industry offerings, it worksthrough a smartphone app which enablesconnectivity between any WiFi-enabled deviceand the Sat-Fi satellite hotspot. From there,

subscribers can send and receive email, SMS,and make voice calls just like they would normallyfrom their devices. Sat-Fi launches in EMEA atthe end of April 2015. European offerings will beannounced later in the year.

www.globalstar.com

A small device with big ambitions

NEWS 25SUMMER 2015

26

Feature

NEWSSUMMER 2015

FlexibilityGavan Murphy, marketing director EMEA for Globalstar, a provider ofmobile satellite voice and data services, said: “Flexibility is paramount,both in terms of devices and billing.” The ability to BYOD (bring yourown device) to work sites is not just good for in-company communications,he pointed out. It can also make for more satisfied employees “asthey are getting and relaying information in near real-time.”

Globalstar customers also want the ability to split communications costsby department and employee and require personal communicationssplit out even further, something the company has responded towith its Shared Pre-paid cards and Sat-Fi Vouchers offerings.

Crew WelfareThe need to address crew welfare, as well as business efficiency,was also implied by comments from Chris McIntosh, CEO of

communications and security company ViaSat UK, who said: “Thegrowth of smartphones and tablets has led to the desire (and oftenthe business need) for always-on connectivity and increasing datademand to service a wealth of applications.” In certaincircumstances this will need to be met by satellite services and, hesaid: “Until fairly recently this has been viewed as hugelyexpensive and the preserve of major corporations andgovernments, but satellite connectivity continues to change.”

SophisticationPeter Crafter, sales director at NSSLGlobal, an independentservice provider of satellite communications and IT support,summarised his view of changing customer demands briefly butprecisely: “More sophistication ~ e.g. meshed WiFi, push to talk,higher bandwidth on satellite backhaul, point to point line of sightconnectivity, redundancy and IP mobility,” he said.

OffComm News investigatedhow selling services in our sector

has evolved over the last fiveyears; and what customers want

from their remote networkstoday. Vaughan O’Grady

summarizes for us in this article.

The status of remote commsdemands today

Deliberatingtomorrow’s services

THE DRIVING FORCES BEHIND THEFUTURE OF REMOTE COMMUNICATIONS

• Broadband for real-time • Reliability • Price • Stability • QoS

Vaughan O’Grady

NEWS 27SUMMER 2015

Feature

Murphy argued that fibre and VSAT are typically thecommunications of choice for remote worksites.However, he suggested that MSS is ~ and has been~ considered as a viable back-up and sometimes theonly means of communications. “It really comesdown,” he said, “to how long the site will beoperational, communications requirements and thecost/benefit of installing a costly VSAT system asagainst a low-cost MSS device.”

Viasat’s McIntosh said: “Remote users want reliableaccess 24/7 with simple terminals and operation,good throughput and value for money,” adding that“by using the right technology, the cost of accessingsatellite services drops to consumer level models.”But there’s a caveat. “Since so much corporate andpersonal data is transmitted daily it needs protectionand so users are increasingly demanding security,”he said.

Interoperability between GSM and MSS has yet to be fully ironed out.

For Crafter of NSSLGlobal there is a brief butimposing list that includes “scalability, up-time,remote maintenance, seamless integration and back-up/failover.” But of course clients themselves oftenhave rather long wish lists. What would be at the topof them? Zajicek summed it up as “prices, stabilityand quality of service,” while Murphy cited clarity(“i.e. zero-latency”), along with affordability andreliability. He added, “I would say interoperabilitybetween GSM and MSS has yet to be fully ironed out.”

ViaSat’s McIntosh put increasing capacity to meetgrowing information needs at the very top of theaverage client wish list. “A 30 per cent year-on-yeargrowth in information needs is seen as an acceptedfigure for government and commercial users,” hepointed out.

Real-time operationsFor NSSLGlobal the list is headed by bandwidth “toenable real-time operations,” reliability “to providethe confidence to run real-time operations” and valuefor money “through greater working efficiencies, e.g.less human resource expertise needed in the field.”

It seems certain that the ability of communicationstechnology to do more in more places, combinedwith the need, in a competitive and cost-consciousworld, to mechanise and automate workflows on rigs,in mines, and on ships (especially when recruitmentis also a problem), is going to guide many a remotecommunications enablers’ thinking in the years to come.

Major themes to noteTwo major themes are clear from all the answers wereceived, however. Always-on broadband connectivityis, or will soon become, a necessity; and demand forcapacity is just going to grow, led by changing end-users’ needs, which are in turn led by access to moresophisticated but easily portable and relatively low-priced devices. Innovation and demand are stilldriving the remote communications future.

WHAT ELEMENTS OF A REMOTE NETWORK REQUIRE MORECONSIDERATION TODAY IN TERMS OF CONTINUED SERVICE PROVISION?

Lower pricesDan Zajicek, CEO of Gilat Satcom, a communicationsolutions provider that offers satellite and fiber-basedconnectivity in Africa, Asia, and the Middle East,cited: additional customer demands, including aworking business model, reliable connectivity,reasonable prices and a scalable service that growswith the business. However, he also addressed themore general question of how selling services in theremote communications sector has changed,highlighting in particular the price drop of satelliteservices and equipment that enables new customersto access the internet. From Gilat’s point of viewthere are also new business models that, he said,“allow us to build long term relationships withpotential customers in the rural areas and supportthem, mainly in the mining industry where there is along term presence.”

DifferentiationIt’s also a more competitive market. Murphy suggestedthat this is “primarily as a result of MSS companiesexpanding their land-based applications and footprint,developing new and more affordable hardware as well asexpanding on the BYOD concept.” Also, he noted, “valueadded manufacturers are expanding their marketablefootprint by collaborating with MSS and GSM operatorson dual-mode WiFi and Simplex M2M devices.”

ViaSat’s McIntosh noted that most markets have avariety of solutions — terrestrial, wireless andsatellite, say — depending on the environment thatthe user is operating in. The skill is being able toblend the network so that this variety is notnoticeable on the user device, and the applicationssimply continue to work as intended. It’s not easy.“Behind this is a great deal of complexity includingdiffering standards, codes of connection and businessand billing models — often from various suppliersthrough a service provider,” he said.

*Markets and Markets: September 2014 report ~ Digital Oil Field Market by Services (Automation & Instrumentation: DCS, SCADA, PLC, Smart Well & CPM; IT Services:Outsourcing, Equipment & Software) & by Processes (Reservoir, Production & Drilling Optimizations) - Global Trends & Forecasts to 2024

Digital oil fieldmarket worth$38.49b by 2024*

Gavan Murphy,marketing directorEMEA, Globalstar

Chris McIntosh,CEO, ViaSat UK

Peter Crafter,sales director,NSSLGlobal

Dan Zajicek,CEO, Gilat Satcom

28

xisting oil production worldwide has been declining byaround 4% to 5% per year, and the industry has beenconfronted with the task of keeping production growthjust barely positive, which is almost impossible if oilprices remain low.

The industry was already cutting back on exploration budgetsbefore the current price trend set in, saying that there were notenough profitable prospects available ~ even at US$100 per barrel.So what happens in exploration and development budgets with oilprices now around a US$50 average? Without exploration there canbe no new production; and without new production, oil supply falls.

Lower prices could force oil companies

to reconsider some investments.

Low oil prices will make it even harder to secure future oil supplies.With supplies shrinking, as demand for oil recovers (as it inevitablywill), we will be witness to another cyclical price spike that mightseverely and negatively impact the global economy.

However, Brazil, for example, has denied that the current slump inthe oil price threatens its potential to fully yield on its pre-saltreserves. Petrobras officials are on record saying that they can stillmake a profit from its ultra-deep wells even if oil dropped to aroundUS$45 a barrel, which it now has.

Brazil still aims to be among the world's top five global oilproducers by 2020, expecting to be producing four million barrelsper day by that time. But to hit that ambitious target, Petrobras willhave to overcome financial and technical challenges.

Output from the pre-salt fields has now passed 500,000 barrels perday, nearly tripling the 2012 volume, and accounting for nearly aquarter of the company's total production of two million barrels perday. Production gains in pre-salt fields are needed to offset declinesin production at Petrobras' mature fields.

Environmental permit delays may set back some of the country’soffshore drilling activities, and with oil prices having fallen to theircurrent low levels, oil firms are seeking to cut costs and improveefficiencies. Lower prices could force oil companies to reconsidersome investments.

Pre-salt oil has undoubtedly reshaped Brazil's energy industry, withmore deep water oil rigs, supply vessels, and floating productionand storage units operating in the region than anywhere else in theworld, according to research firm IHS. To get at this oil there,Petrobras has invested billions of dollars on research, new 3-Dimaging technology, an improved shipping fleet and biggerhelicopters to get workers and equipment to the fields.

As elsewhere, Brazil’s oil & gas sector faces many challengeswhich arise from operations in some of the most dangerous, harsh,and remote environments on Earth. The industry’s commercial andoperational centres require a range of means to communicate withexploration and production (E&P) rigs and platforms, and to drawinformation from computer applications, mission-critical equipment,and other in-field infrastructure.

The communication imperativeRobust communication is an imperative in permitting key personnelto maintain all-round contact between fieldworkers, senior operations management, andexpert decision makers in other locations;and for facilitating the relaying ofdecisions and instructions based ondata streams from sources such asdrilling equipment, seismic sensors,and security applicationsinstallations. Now is not the time tocompromise on the mission-criticalrole of communications connectivityin maximising the potential of E&Poperations.

Martin Jarrold, Chief at GVF, considers the effect of falling oil priceson current and future exploration and development plans.

Now is not the time to cutcommunication budgets

Calling the Oil Industry

E

Opinion

NEWSSUMMER 2015

Martin Jarrold, Chief, InternationalProgramme Development, GVF

See our feature

on how cost

savings on

connectivity can

help, on page 14

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30 NEWSSUMMER 2015

Complicated hardware maintenance andreliability issues across multiple sitesIDS (Independent Data Services) maintained a complicatedhardware infrastructure. The company faced uncertain usage-reliability of servers in the legacy system due to complexity indelivery across multiple data centres. It needed a single, intuitive,global customer portal to reduce infrastructure complexity and tostreamline the delivery of solutions to ensure accurate operationalreporting to oil and gas operators, drilling contractors and servicecompanies located around the world.

It also needed to increase its network capacity to provide a growingclient portfolio with the fastest and most reliable operationalreporting solutions. Scalable service linkage between worldwideconnections was a key challenge in achieving a seamless process.

Enterprise cloud reduces complexityand delivers seamless connectivityIn its selection process, IDS prioritized partners with globalintegrated ICT network and cloud capabilities that could address theneed for scalability and mobility responding to business growth.NTT Com’s enterprise cloud was selected due to its extensivedistribution of POPs around the world ~ and a resilient backendnetwork which has the capability to deliver optimal consistentlatency results. Teaming up with NTT Com Security, IDS has alsoenhanced its security capabilities with active threat management tomatch the levels required by its business.

Capacity increased at a level cost whilecapabilities increased without the need forhardware investment, resulting in higher resilienceIn just a few months, IDS increased its capacity at a level-cost bychoosing NTT to consolidate its data servers. By reducing theamount of hardware and unused capacity, they were able toincrease capabilities without additional hardware investment,thereby maximizing cost savings. With a more flexible and scalablearchitecture, IDS is able to dynamically manage resourcesaccording to demand and workloads. Lastly, with highly resilientand reliable global network, and integrated software definednetworking (SDN), IDS was able to connect and use the networksecurely with noted vast increase in resilience.

A provider of web-based reporting services to the upstream oil and gas industry, Independent DataServices, reached to the cloud with NTT Communications.

Operational Reportingand Data Analysis

Case Study

Challenges

Complicated hardware maintenance and reliability issuesacross multiple sites.

Solution

Adoption of NTT Com’s enterprise cloud reduces complexityand delivers seamless connectivity.

Benefit

Capacity increased at a level cost; capabilities increasedwithout hardware investment; higher resilience.

31NEWS SUMMER 2015

Article

The suitability of satellite-based transport solutions for latency-dependent applications comes down to understanding the physicsbehind the latency, closed- loop operations and the applications.First, let’s look at the physics. Due to the finite speed ofpropagation of an electromagnetic wave in free space, the Round-Trip Time (RTT) of an Internet Control Message Protocol (ICMP)echo request and reply, also known as a ping, between two groundterminals over a GEOSAT ranges from 480 ms to 570 ms.

When transferring files over an Internet Protocol (IP) basednetwork, the impact of nearly 500 ms latency is felt in closed-loopoperations associated with everything from flow control to filetransfers. Within IP’s Transmission Control Protocol (TCP), flowcontrol is handled by a 16-bit Receiver Window Buffer. The bufferkeeps track of the number of bytes that can be sent, withoutacknowledgement, up to a maximum value of approximately 216bytes, or 64 kB.

For the communications protocol to be efficient, the ether betweenthe ground stations must be kept full of data over the period oftime it takes for the receiving station to receive and process thefirst tranche of data, then acknowledge receipt of data back to thesending station.

The exact number of bits in transit is given by the product

of bandwidth and RTT, also known as the Bandwidth Delay

Product (BDP). In the case of a standard implementation

of TCP, BDPs greater than 64 kiB value for the receiver

window will reduce the effective throughput of the link.

The approximate formula is: Effective_Throughput =

(Receive_Window / BDP) * bandwidth

OptionsA common solution to this bandwidth limiting effect involvesinstalling a network appliance, to remove the constraint imposed bythe small receive window buffer, by swapping out the TCP protocolwith a proprietary one. These appliances are known as TCPAccelerators, WAN Optimizers, or Application Accelerators. Theycan also transform the sequential transfer of a set of small files intoone where the files are transferred in parallel, to minimize theimpact of waiting for the individual file open and close operations asdata is written.

Encryption protocols suites, such as IPsec, may require a full6-message handshake (e.g. IKE Main Mode). Web basedcryptographic protocols such as TLS will also require multiplehandshakes that will also involve a X.509 Certificate Server. Theresult of the multiple handshakes required to setup an encrypted linkis an operational pause of approximately 1.5 to 3.0 seconds beforeany user data flows across a newly established encrypted link.

Remote drilling applications in the oil and gas industry can be modeledas a Proportional-Integral-Differential (PID) controller, where theincreased latency appears as a phase shift in the error value in thecontrol loop. Of course, an engineering analysis must be performedto determine its ultimate suitability, but in many RT applications,such as piloting drones in aviation, the latency experienced over aGEOSAT can be accommodated by careful tuning of the PIDparameters, making the system responsive and stable.

In all but the most demanding RT application, network servicesdelivered over GEOSATs can still meet user requirements with acarefully engineered, end-to-end system. Satellite-based networkservices still provide the desired bandwidth and expectedperformance at a great value.

In today’s hyper-connected world, high bandwidth, low latency terrestrial networks supportingReal-Time (RT) or Near Real-Time (NRT) applications have become the accepted norm by well-connected users. But, network services delivered over satellites in geostationary orbits(GEOSATs) present a viable solution for the rural and offshore environments in which the oiland gas industry operates.

By Alexander Benitez, Senior Scientist for ComSource Inc., a Globecomm company.

Exploring satellite for deploying effective real-timenetwork services for oil & gas industry demands

Alexander Benitez, SeniorScientist, ComSource Inc

Client Vendor Details Date ESVAGT Havyard Ship Technology AS Contracted to build a 60-man service vessel for Dudgeon wind farm operated by Statoil Dec-14Keppel AmFELS LLC Undisclosed/Confidential Deal worth +US$100m to build one of the world's largest land drilling rigs for delivery mid-2016 Jan-15Keppel Shipyard Ltd Golar Gimi Corporation (Golar Gimi) Contract for conversion of LNG carrier, the GIMI, into a FLNGV worth approx US$705m Jan-15Seaways International Pte Ltd Keppel Singmarine PTE Ltd Agreement to contract multi-task AHT vessel for offshore activities Jan-15Nakilat-Keppel Offshore & Marine Keppel Singmarine PTE Ltd Joint venture to provide technical services for new lifeboat Jan-15Bernhard Schulte ULSTEIN Contract to build 2 x SOVs with accommodation for up to 109 persons for WINDEA Offshore GbbH & Co KG Jan-15New Orient Marine PTE Keppel Singmarine Pte Ltd Contract for an ice-class multi-purpose vessel worth cUS$265m Jan-15Van Oord Damen Elected to supply FCS 1605 vessel to commence operations April 2015 Jan-15ULSTEIN CBO Contract for design & equipment package for a PSV PX105 type; includes option for 2 more vessels Feb-15Esvagt Havyard Agreement to deliver 2nd windfarm service vessel as part of a 5yr contract for Siemens Mar-15OEG Offshore Oilfield & Resource Rentals (ORR) Acquisitions of West Australian Oilfield Service Providers Mar-15

& Offshore Cryogenic Services (OCS)KEY

LNG - Liquefied Natural Gas • FLNGV - Floating Liquefaction Vessel • AHT - Anchor Handling Tug • SOV - Service Operating Vessel • FCS - Fast Crew Supplier • PSV - Platform Supply Vessel

flash new builds contracts Q1 2015

ast year, the US, Australia, and Brazil were the mostfavourable oil and gas investment destinations.Today, the US (28%), followed by China (11%) andNorway (9%) top the list ~ according to new insightfrom DNV GL.

Globally, a quarter of the respondents plan toincrease standardisation of tools and processes

to impose stricter cost controls.

Australia Australia has experienced the most significant fall in industryconfidence in the last three months of any location globally. Hiringintentions changed dramatically in the region. For example, prior tothe dip, just 10% planned to decrease headcount; this rose to morethan half (52%) in January 2015. A similar outlook is reflected incapital expenditure intentions, with those planning to increaseCAPEX (capital expenditure) in the same three month perioddropping 56 percentage points (from 71%) to 16%.

Expectations of spending on R&D/innovation have also scaled backsharply in the last three months, with respondents planning todecrease spending rising from 8% to 39% in January. Some 14%still plan to increase spending on R&D and innovation, comparedwith 10% globally; and, 18% believe that skill shortages the biggestbarrier to growth compared to 11% in North America, and 14% inEurope.

Richard Palmer, regional managerfor Australia at DNV GL - Oil & Gas,said that the industry must take heedof the lessons learnt from the recentwave of investments in order tomake future investments moresustainable.

"It is important that the industrycontinues to develop skilled people inAustralia and to invest in researchand innovation. If we stop doing this,we are going to be worse off furtherdown the road. We need to use thisdownturn to become more efficientin how we do things,” he said.

North AmericaThe low level of confidence in North America is also reflected incapital expenditure intentions. Previously, a quarter (25%) ofrespondents were planning to decrease CAPEX and this has nowrisen to more than half (51%). Almost half (49%) now expectheadcount to decrease, compared to 11% in 2014. The surveyshowed that cost management is a top priority for nearly a quarter(24%) in 2015, but this is the lowest response for any region. Theglobal average is 31%.

Peter Bjerager, divisional director for Americas at DNV GL - Oil &Gas, said that the fact that: “When the US is now cited as the mostfavourable investment destination by 28% of respondents globally,followed by China and Norway, it indicates confidence in the mix ofcost management measures being taken in the US.

“We asked senior oil and gas professionals what measures theywould prioritise to impose stricter cost control and tougherdecisions on CAPEX was preferred by more than half of therespondents. Other preferred measures included improvingworkflow/processes, increasing pressure on the supply chain toreduce costs, and reducing exposure to costlier, riskier projects.Cuts in the workforce come in fifth place by nearly a quarter, closelyfollowed by more standardisation of tools and processes, chosenby one in five of the respondents.”

“Together with continued investments in R&D, these are measuresthat balance short-term cost control with longer-term efficiencygains,” Bjerager concludes.

Europe

Europe's oil and gas industry is taking action,with 49% planning to decrease CAPEX this year,compared to 8% last year. Nearly half (48%) alsoplan to decrease headcount in 2015 compared

to only 16% in 2014.

Although confidence and CAPEX intentions scaled back, the drophas been less severe in Europe over the last three months than inother regions. More than three quarters (76%) of Europeanrespondents plan to increase strictness on cost control with 31%saying that cost management will be their top priority in 2015. A

The road ahead is a challenging one for the oil and gas sector;customers and suppliers are being forced to adjust.

Industry confidence andpriorities for the year ahead

L

Analysis

32 NEWSSUMMER 2015

number of measures are expected with 49% planning tougherdecisions on what CAPEX decisions are actually approved; and36% prioritising improved workforce/work processes; and thesame number planning to increase pressure on the supply chain toreduce costs. Around one third (33%) of European respondentsexpect to prioritise standardisation of tools and processes in orderto impose stricter cost controls.

Tobias Rosenbaum, regionalmanager, Continental Europe andNorth Africa for DNV GL – Oil & GasTobias Rosenbaum, regionalmanager: Continental Europe andNorth Africa for DNV GL – Oil & Gas,said: “Despite tighter budgets andtougher conditions, it is importantthat the industry continues todevelop skilled people in ContinentalEurope and it is positive to see thatsixty percent of respondents plan tomaintain or increase investment inresearch and innovation. This will beneeded for the long-term health ofthe industry. And there is work inprogress too: the Pan-European

pipeline projects in the southern gas corridor are very long termoriented and we see them being pushed ahead independent of thecurrent of oil & gas prices.”

The biggest barriers to growth for European respondents are thelow oil prices (68%), the weak global economy (36%), uneconomicgas prices (21%) and tougher competition from international rivals(19%). Only 14% of European respondents cite skills shortages oran ageing workforce as a barrier to growth in 2015. Globally skillsshortages were the biggest barrier to growth in 2014 (49%) and2013 (55%). However, 11% in Europe still plan to increasespending on R&D/innovation.

Hiring plans have fallen by thewayside in the Asia Pacific regionMore than anywhere else, in fact. In October 2014, more than half(51%) of respondents still expected headcount to increase in theirbusiness, but this has now dropped to 11%, and 46% now expectthe headcount to decrease up 30 percentage points in threemonths. Cost management will be a priority driven by pressurefrom low margins with 70% of respondents planning to increasestrictness on cost control.

New measures will be introduced with the top priorities being:improved workflow and processes (43%), tougher decisions onwhat capital expenditure decisions are actually approved (38%),reducing exposure to riskier/costlier projects and reducing the sizeof the workforce (both 29%).

Working smarterRichard Bailey, executive VP and director for Asia Pacific andMiddle East, at DNV GL - Oil & Gas, said: “The dramatic drop inconfidence, CAPEX, and hiring intentions [recently] is no surprisegiven the oil price. At the same time, we have some of the world’slargest international mega projects for Australia, Malaysia, MiddleEast, and Europe still under development here, which in turn, willkeep key regional suppliers busy.

“It’s positive to note that Asia Pacific respondents put a greateremphasis on improving work processes as ways to work smarterand more cost-effectively to help ride out the storm. Whilst short-term measures ~ such as cutting CAPEX spend to reduce costs ~are understandable, the industry must continue to keep a clearfocus on long-term growth to remain robust in different priceenvironments.”

NEWS 33SUMMER 2015

Quick facts• China is the second-most-favoured investment destination among

11% of global respondents, after the US (28%) and before Norway in third place (9%).

• 14% of Asia Pacific respondents still plan to increase spending on R&D and innovation in 2015 compared to 10% globally.

• Asia Pacific reports the biggest cut back in spending on R&D of any region in the last three months, with only 14% of respondents planning to increase spending on R&D, a drop of 25 percentage points in the last three months.

• The biggest barriers to growth for Asia Pacific respondents are the low oil prices (68%), the weak global economy (38%) and tougher competition from international rivals (25%).

• 18% of Asia Pacific respondents believe skills shortages or an ageing workforce to be the biggest barrier to growth compared to 11% in North America and 14% in Europe.

• 22% of Asia Pacific respondents will prioritise increasing pressure on the supply chain to control costs, which is less than in other regions (38% in North America and 36% in Europe).

• And overall, the US (28%), China (11%) and Norway (9%) are the top three most-favoured investment destinations for 2015, whereas last year these were the US, Brazil and Australia.

Source: www.dnvgl.com/balancingact

34 NEWSSUMMER 2015

Usatcom is a professional association that enables aplatform for networking with European satelliteindustry stakeholders and progressing businessopportunities. Under its wing, members mingle withother experts on the latest industry developments, anddiscover new ways serve customers in the field.

The next generation of backhaul

Semir Hassanaly, market directorcellular backhaul & trunking, Newtec

"The landscape for satellitebackhaul has radically changed.The rapid expansion of mobilenetworks to rural areas all overthe world and the fact that the traffic on mobile networks is

moving from voice to data and video puts special requirements to satellite links."

Mobile operators need to invest in solutions which best serve themtoday, but are also geared towards a fast evolving environment. Notonly do operators have to exend their networks to cover rural areas,the new smartphone generation has expectations. For mobilenetworks nowadays, acceleration, compression, caching, and trafficshaping can all help to enhance the user experience.

For the satellite industry, the challenge is to provide a newgeneration of satellite backhaul that can ensure QoS, differentiatetraffic, manage the highest peak requirements, and get a servicelevel commitment.

Ka-band offshoreAmid depressed oil prices, the offshore industry is going throughsome tough times and many are seeking ways to bring communicationcosts down, wanting more bandwidth for less cost. Thankfully, newKa-band satellites covering large areas in the North Sea, together withthe roll-out of new professional services, are bringing unprecedentedprice-value performance. Yet, while these solutions are helping tosatisfy some of the bandwidth-hunger, from platform crews whowant to stay in touch with their friends and family at home via theirown devices, using Ka-band at sea is not a trivial matter.

Battered antennas, wind farms on the high seas, andpredicting bandwidth requirements are all tough, dailychallenges for some of us. In this article, experts from theEuropean Professional Satellite Association share theirthoughts on these issues.

E

Focus

NEWS 35SUMMER 2015

Offshore platforms, particularly in the North Sea, can experiencewinds with hurricane force that pummels the antennas.Traditionally, this equipment was made for the rural market whereit’s easier to take a ladder to go and fix any damage. But to get to adamaged offshore unit, you need to a certified engineer onboard,usually transported via helicopter. Aiding this dilemma, is afundamental re-build of the antenna. When the whole configurationis remotely manageable, then the need to physically send someoneto the offshore site can be minimised.

Cees Mol, CEO, icees "Out on our platforms in theNorth Sea we sometimes seewinds with hurricane forcebeating our antenna equipment.We pride ourselves to be ableoffer a high quality KaSatProservice that is reliable under

those extreme weather conditions and our Crew Welfare system to keep people connected totheir families and friends."

The engineering behind wind powerThe construction of new oil platforms in the North Sea has nearlystopped due to falling oil prices, but the new-builds for durableenergy sources, such as wind energy, is accelerating. The Germaninitiative to build massive wind farms in the North Sea is driving thistransition.

The placement of wind turbine masts on the high sea is anengineering masterpiece, but reliable communication links arecritical. Position, motion, and inclination of the masts all need to bemonitored to ensure that the mast is deployed at the right locationand, very importantly, 100% vertical. For that, sensor data in themasts are streamed in real-time to a data centre onshore to controlthe process of placing the masts. Satellite service providers had toinnovate and developed specialised methods to guarantee thereliable connectivity needed to support that.

Anja Milicev, Project ManagementMaritime & Offshore, MediaMobilGmbH"Building offshore windconstructions on high seas isan astonishing engineeringaccomplishment, and we areproud we can contribute by providing reliable communication links."

Smart flexibilityTraditional communications links can no longer support thebandwidth-hungry needs of today’s applications in the Oil & Gassector for commercial monitoring, control functions, data analysis,safety management and crew welfare. Energy companies are alsoconstantly implementing new applications onboard vessels and onoffshore platforms, such as: real-time monitoring systems, ERPsystems, and videoconferencing, to make operations moreefficient.

All these services have different requirements in terms bandwidth,making the total capacity required a bit difficult to predict. It alsomeans that services need to be smarter and that the flexibility tomeet fluctuations is an important part of an effective solution forthis market.

Mark Lambert, VP sales & marketing,managing director for Europe & EMEA,Advantech Wireless"As the data environment in the energy sector can beextremely unpredictable overtime, our satellite terminals can jump between very lowdata rates (eg. SCADA) and

high-rate streaming data (eg. HD video) and back again, in an instant, while using the satellite bandwidth most effectively. It is these types of smarter solutions that help our customers deal with the turbulent conditions they work in."

Hub Urlings, Founder of M2sat&EUsatcom Bureau"The increasing complexity ofIP-based corporate applicationsand the need to integratesatellite networks in corporateWANs requires teamwork anda smooth collaboration of

knowledgeable partners. For me that is one of the key drivers behind the European ProfessionalSatellite Association."

EUsatcom encourages all stakeholders to join in the conversationand to help move the industry forward. The Association’shomepage can be found at EUsatcom.org.

Focus

News

36 NEWSSUMMER 2015

Intelligent managed commsThose that find themselves in remotelocations, such as in the energy and cruiseindustries, can struggle to obtain reliable,always-on communications when theychange global position.

Harris CapRock Communications has justlaunched what it claims is the industry’sfirst unified, fully managed satellite,wireless and terrestrial connectivity servicedesigned to reduce voice, data andequipment management costs. The newoffering, called Harris CapRock One,switches between the various transportmediums to optimize communications. Itenables users to replace current single ordual-band communication support optionswith a multiple-medium solution to provideoptimal connectivity at any given time.

“Harris CapRock is going to drasticallychange the way our clients experiencemanaged communications services,”said Tracey Haslam, the company’spresident. “Harris CapRock One is thefirst commercial service of its kind tounify satellite, wireless and terrestrialconnectivity into one platform.Customers want a solution that isflexible and optimizes their operationsno matter where they are located, orhow mobile their assets are. HarrisCapRock One delivers that and more.”

Optimising networktraffic via a smartboxBy optimising the network traffic, the ICD(Intelligent Communications Director)enhances the end-to-end experience,completing an intelligent routing solutionwith application performance management.A multi-band antenna allows for C-, Ku- andKa-band connectivity with no additionalmoving parts. This means that any satelliteorbiting the Earth can be accessed withouttechnician intervention.

The ICD is a geographically awaresmartbox that recognizes where the multi-band antenna is around the world andcarries a database of the networkfootprints available. The device is aware ofthe operator’s traffic and can route itintelligently over the most appropriatenetwork path based on speed, latency,location, and cost.

This technology also means that energyand cruise industry businesses can investin fewer radomes that support any signaland will self-configure for the scenariodepending on where the vessel or site is inthe world. Ships and oil and gas operationsnow have multiple communicationschoices in one technology, achieving thehighest uptime in the industry at 99.999%.

Big Data impact onmaritime operationsOwners and operators want clarity in usagetrends to better understand the implicationsof data use. The trends on land, that areforcing cell phone companies to sell accessby the gigabyte, are starting to transfer tomaritime services. So, services for dataaccess at sea need to address theincreasing operational demand and thethreat that crew's broadband data usagecould overwhelm a vessel’s data network.

To support data-based applications onboardcommercial vessels, the next generation ofconnectivity ~ between ship and shore ~will be dominated by applications to helpship owners and managers reduce costs byenhancing operational efficiency,automating processes, and avoidingexpensive repairs.

The maritime industry is facing explodingdemand for broadband connectivity at seaacross mobile devices. Attracting andretaining quality workforce is still a majorchallenge facing industry leaders with “atech-savvy, digital native crew” being askedto work on increasingly sophisticatedequipment, against increasingly complexregulatory expectations.

“Simply adding bandwidthcapacity and data speed is notenough as there are always new

ways to fill up that capacity.”

Today’s seafarers are also demandingbetter communications connections tohome; social media, and the internet at sea~ as well as have access to news, movieand TV entertainment, and music, all ofwhich must be licensed. “The shippingindustry needs to change how it thinksabout connectivity and content delivery,”says Bruun.

Brent Bruun, executive VP of mobilebroadband at KVH Industries Inc.

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26 - 27 May 2015 | Sandton Convention Centre, Johannesburg, South Africa

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