The collaboration will enhance efficiency and safety in the drilling rig market. (Image source: Salunda)

Digital solutions provider Salunda has signed an agreement with technology services company Intellilift to increase safety and efficiency in well construction

The agreement, which solidifies a long-term partnership between the two companies, was signed following a successful pilot trial integrating Intellilift’s proven digital technologies with Salunda’s patented camera and wearable Red Zone monitoring solutions on a drilling rig.

The combined capabilities of Salunda and Intellilift will enhance efficiency and safety in the drilling rig market. By accelerating well construction through automation, these advancements will also safeguard the wellbeing of personnel working in hazardous areas.

Salunda’s Crew Hawk wearable technology and HaloGuard cameras can be integrated with Intellilift’s drilling software, resulting in improved safety conditions, enhanced well planning and reductions in tripping time.

Alan Finlay, Salunda chief executive, said, “This collaboration underscores our commitment to developing proprietary technologies that improve the welfare of those working in safety-critical industries and to address the evolving needs of our clients and partners.

“By integrating our hazardous area monitoring technologies with Intellilift’s systems, we can support in optimising the construction of wells by merging information gathered from drilling equipment and the movements of personnel in close proximity to Red Zones. This will result in improved safety controls and reduced downtime.”

Stig Trydal, Intellilift chief executive, said, "I am thrilled to announce our partnership with Salunda. This collaboration is a significant step forward in our mission to deliver data-driven performance improvements and state-of-the-art technology solutions. By combining our open architecture with Salunda’s monitoring technologies, we are set to offer advancements that will redefine automation and remote operation industry standards.

“Our joint efforts will not only enhance the capabilities of our products but also ensure that our customers are equipped with the best tools to meet their requirements. We are excited about the potential this partnership holds and look forward to the breakthroughs that lie ahead."

Salunda’s wearable technology and camera solutions wirelessly monitor hazardous working environments in real-time, tracking individuals and equipment to provide anonymised feedback that focuses on safe operations and minimising risk.

The subsea market is set to experience a significant inflow of capital from 2024-2027, with total spending set to exceed US$42bn at a CAGR of 10% over this period, according to Rystad Energy

The growth is driven by investment in deep and ultra-deep projects and includes players involved in production and processing systems such as subsea umbilical risers and flowlines (SURF), trees, wellheads, manifolds and other components.

Driven by rising operator expenditure on equipment and installation services, investment activity has been particularly robust in regions such as South America and Europe, where major projects are making significant progress and attracting new investment. Brazil, with its vast pre-salt reserves, is driving strong demand for subsea equipment and SURF, with anticipated expenditure set to surge 18% to US$6bn in 2024. Meanwhile, in Europe, Norway is experiencing a resurgence in activity, fuelled by favourable market conditions and technological advancements.

Deepwater developments are set to dominate the sector, accounting for 45% of the market from 2024 to 2028. Significant greenfield projects include Barracuda Revitalization in Brazil, Johan Castberg and Breidablikk in Norway and Golfinho in Mozambique. Key brownfield initiatives include Balder Future, Gullfaks South and Schiehallion in Norway and the UK.

Ultra-deepwater projects, driven by major floating production, storage and offloading (FPSO) initiatives in Brazil and Guyana, are projected to capture 35% of the market, led by South America.

In 2024, ExxonMobil's expanded operations, with a focus on Guyana, are expected to significantly boost subsea tree installations, while in the SURF sector, global installations are anticipated to reach 3,500 km in 2024., with Brazil expected to account for 22% of this total, followed by the USA and Angola.

Looking ahead, TechnipFMC, OneSubsea and Aker Solutions are expected to lead the way in the supply of subsea trees. In terms of operators, Petrobras remains a dominant operator, particularly in South America, where it has heavily invested in pre-salt developments. In Europe, Equinor and Aker BP have extensive subsea portfolios, with significant tieback projects on the Norwegian Continental Shelf, while in the USA, Shell and BP lead with substantial investments in deepwater and ultra-deepwater exploration and production. TotalEnergies holds a strong position in Africa, especially in Angola and Nigeria.

The subsea sector is also expanding beyond traditional oil and gas applications, Rystad notes. The push for carbon capture and storage (CCS) is creating new opportunities for suppliers and spurring research and development in this emerging market. Consequently, suppliers are leading the way in developing more efficient subsea production systems, which are set to see broader adoption.

“The subsea market has rebounded robustly from the impacts of Covid-19, which caused a significant 20% drop in expenditure in 2020. By 2021, the industry began to recover, with spending increasing by 5% to reach US$23bn. Looking ahead, we anticipate steady growth in the subsea sector, fuelled by advancements in deepwater exploration and carbon capture and storage (CCS). This recovery highlights the industry’s resilience and suggests a promising trajectory of consistent progress,” said Sanwari Mahajan, analyst, supply chain research, Rystad Energy.

Both onshore and offshore operations, and oilfield services did well. (Image source: Adnoc Drilling)

Driven by operational expansion across all business segments, ADNOC Drilling’s second quarter and first half 2024 revenue increased to US$935mn, surpassing US$1.8bn, up year-on-year by 29% and 26% respectively

There was a steady revenue increase in both onshore and offshore operations, and in oilfield services as well. 

“ADNOC Drilling has continued to deliver on its strategic initiatives and has successfully closed the first half of the year on a strong note, achieving multiple milestones.

“The Company’s performance for the period is a continued reflection of our unwavering commitment to operational excellence and efficiency in every aspect of our business. Our achievements for the period are a testament to the relentless dedication of our people, whose efforts are central to delivering outstanding service to our customers and maximising value for our shareholders,”said Abdulrahman Abdulla Al Seiari, CEO, ADNOC Drilling.

The strong top-line translated into record EBITDA both in the quarter and the first half. Second quarter EBITDA increased by 37% year-on-year and 8% sequentially to US$472mn, yielding a 50% EBITDA margin. Consistency in revenue growth and cost-cutting strategies led to US$909mn EBITDA in the first half of the year, up 34% year-on-year and with a margin increase to 50%.

Net profit for the quarter also grew, up 29% year-on-year and 7% sequentially to US$295mn, driven by the increase in EBITDA, while for the first half the figure stood at US$570mn, up 28% year-on-year.

At the end of the second quarter, the fleet consisted of 140 rigs (136 owned plus four lease-to-own land rigs), up from 137 at the end of the first quarter due to the addition of three land rigs.

Encouraged by the positive results, the Board of Directors has approved an interim dividend of US$394mn, +10% year-on-year under new enhanced and progressive dividend policy, equivalent to 9.0468 fils per share.

The interim dividend distribution is expected to be in the last week of August 2024, to all shareholders of record as of August 12, 2024.

The agreements will boost production in the Mediterranean and Suez Gulf. (Image source: Adobe Stock)

Egypt’s Minister of Petroleum and Mineral Resources, Karim Badawi, has signed agreements to boost oil and gas production with Shell Egypt and Cheiron Energy to boost oil and gas production in the Mediterranean and Suez Gulf

The minister, Shell Egypt’s vice president and country chair Dalia El Gabry, and Egyptian General Petroleum Corporation (EGPC) chairman Alaa El Batal have signed an agreement between EGPC, Shell and Malaysia’s Petronas to invest US$222mn in the 10th phase of gas production in the West Delta Deep offshore area to boost production. It will involve the drilling of three wells to produce natural gas and establish marine facilities to bring the wells into production.

Before the signing, Badawi and El Gabry held a meeting where the Minister stressed the government’s commitment to working with Shell, a key player in Egypt’s energy sector, to increase gas production in the Mediterranean, while El-Gabry confirmed Shell’s commitment to Egypt and its plans to invest in new exploration and production projects.

The minister also met with a delegation from Cheiron Energy and signed a US$120mn deal with the company and KUFPEC to boost oil production in the Suez Gulf. The agreement includes drilling nine wells in the Geisum and Tawila West area in the Suez Gulf, including three exploration wells. It is envisaged that the investment will increase oil and gas production in the Gulf of Suez from 21,000 bpd to 26,000 bpd.