Department For Energy And Climate Change News

Carbon capture, utilisation and storage (CCUS) is gaining momentum to meet stringent climate change goals and secure energy supplies for the future. To fully understand the environmental and safety implications associated with the development of CO2 pipelines, DNV GL is conducting the oil and gas industry’s largest ever controlled release of carbon dioxide from an underwater pipeline at its full-scale Spadeadam Testing and Research Centre, located in Cumbria, UK. The planned underwater release, scheduled to start in January, is part of an international Joint Industry Project (JIP) ‘Sub-C-O2’ to develop safety guidelines on the use of offshore CO2 pipelines.

Cairn is pleased to announce that it has entered into a farm out agreement for the sale of a 10% interest in the Catcher development and adjacent acreage in the UK North Sea. With effect from 1 January 2014 Dyas UK Limited (Dyas) shall acquire 10% in each of the following UK Continental Shelf licences P1430, P2040, P2070, P2077 and P2086 by funding Cairn’s exploration and development costs in respect of the licences up to a cap of $182million (m). Following this transaction Cairn will retain a 20% interest in the Catcher licence and a reduced interest in each of the remaining licences as detailed below. As a result of this transaction…

Britain imported more oil products than it exported last year for the first time in 30 years, an official report shows, and analysts say the country is likely to stay dependent on overseas oil as its refineries close. Britain exported 26.2 million tonnes of products such as diesel, kerosene and jet fuel from its refineries last year, but imported 28.2 million tonnes, due to the closure of two major oil processing plants. "The U.K. was a net importer of petroleum products in 2013 for the first time since 1984, the year of the miners' strike," the UK's Department of Energy and Climate Change (DECC) said in its annual report. Coryton oil…

Britain said on Wednesday there was scope for more UK refining capacity to close without undermining energy security but set up a new task force to help the struggling sector fend off overseas competition. The government's long-awaited review of Britain's refining and fuel imports sector comes a week after Murphy Oil said it could be forced to close its loss-making Milford Haven plant in Wales after talks with a potential buyer collapsed. In a 44-page report, the Department of Energy and Climate Change said environmental regulation along with the U.S. shale boom and the rise of new refiners in Asia made it harder for Britain's seven refineries to compete.

U.K. energy regulator Ofgem on Wednesday launched a £400 million tender for linking offshore wind farms in the North Sea to Britain's national power grid. Ofgem is calling for firms to construct high-voltage transmission links to connect the Westermost Rough wind farm owned by WMR Limited, part of DONG Energy, and the Humber Gateway wind farm owned by E.ON., to the grid, Ofgem said in a statement. The two sites have a combined capacity of 425 megawatts, while the successful bidders will receive a guaranteed revenue stream for 20 years, Ofgem said. Offshore wind farm developers are required by the regulator to open their transmission assets for tender to encourage competition and lower prices.

By John Kemp. The opinions expressed here are those of the author, a columnist for Reuters. Britain's North Sea exploration and production business is set to be transformed, with cooperation replacing competition and proactive, intrusive regulation replacing a light touch. On Monday, ministers promised to back fully the recommendations contained in Ian Wood's review on maximising oil and gas recovery from the UK Continental Shelf (www.woodreview.co.uk). A powerful new regulator will be spun out of Britain's Department of Energy and Climate Change (DECC), staffed by industry experts with salaries to match, to end the squabbling among offshore operators and promote a strategy based on shared infrastructure and regional development plans.

Stork has been shortlisted for two awards at this year’s SPE Offshore Achievement Awards, including the ‘Safety Innovation’ award for its innovative Extended Breathing Apparatus System (ERBAS) and the ‘Environmentalist’ award for its efficient Sandwash Tank system. Both accolades honour excellence in innovative technological solutions developed in the U.K. for the offshore energy sector. The Safety Innovation award also regonizes outstanding contribution to offshore safety and the Environmentalist award also acknowledges technology that has reduced the environmental impact of the industry.

Developer RWE Innogy is pulling the plug on the 240-turbine Atlantic Array project, report BBC News citing a  Department of Energy and Climate Change (DECC) source. The 222m (721ft) tall turbines, planned to be situated in an area 200 sq km, (77 sq miles) about 16.5km (10 miles) from the north Devon coast, 22.5km (14 miles) from south Wales coast and 13.5km (8 miles) from Lundy Island nature reserve, would be capable of producing enough electricity for up to 900,000 homes. DECC commented to the BBC that the scrapping of the scheme was a matter for the developer…

The U.K. Department of Energy and Climate Change (DECC) issued a news release stating that the interim report on the economic and energy security opportunities still available from the U.K.’s offshore oil and gas resources has been completed. Among other things, the report recommends a new arm’s length regulatory body to oversee and develop a program to maximize the economic recovery of oil and gas for the U.K. Sir Ian Wood has published his interim report revealing the economic and energy security opportunities still available from the U.K.’s offshore oil and gas resources.

The equivalent of 41 billion barrels of oil have already been produced from the UK Continental Shelf, but production is declining. Improving the way the UK's offshore oil and gas industry is regulated could boost the economy by £200bn over the next 20 years, according to a new government-commmissioned report by retired oil tycoon Sir Ian Wood, reports BBC Scotland. The current regulator, which is situated within the Department of Energy and Climate Change (DECC), is now significantly…

Braemar Adjusting continues its global expansion with the addition of one director in London, two directors in Houston and an energy adjuster in Singapore. Ian McInroy re-joins Braemar’s London office as a Director in October 2013 from a leading international insurance broking and consultancy group, where his primary responsibilities were to design risk transfer programs for offshore energy construction projects and advise clients on the terms and conditions of their energy contracts.

A standard program template for U.K. offshore decommissioning projects has been credited with heralding a step-change for the industry after being formally endorsed by the U.K. regulators and successfully trialed by three international operators for different types of asset. Decommissioning industry body Decom North Sea (DNS) developed the template in partnership with the Department of Energy and Climate Change (DECC). The new template will help streamline and standardize the format for decommissioning programs throughout the UKCS whilst still fully satisfying regulatory requirements.

Offshore Installation Services Ltd (OIS), an Acteon company, launched a new service designed to help operators fulfill their suspended well decommissioning plans. Wellintel is a well data collection and review service that gathers and prepares the information operators require before they start a decommissioning program. OIS engineers with extensive well abandonment knowledge and detailed understanding of the entire decommissioning process will deliver the service. Operators having…

GDF SUEZ E&P UK Ltd awards a £1.4 million joint study to Xodus Group and Atkins for Concept Select work for the Austen (formerly Jacqui) field in the Central North Sea, with a further option to proceed into the Concept Definition phase. The studies will identify development and export options for the field. Aberdeen-based Xodus and Atkins will start work immediately with completion scheduled for Q1 2014. The contract follows the successful drilling of an appraisal well by GDF SUEZ E&P UK in 2012 and was bid against competition from other UK and European contractors. It is the start of several workscopes currently being planned by GDF SUEZ E&P UK to support its Central North Sea development portfolio.

Increased UK drilling and deal activity leads the way back to health in North West Europe says new report. A broader range of tax allowances and a sustained high oil price boosted drilling activity on the UK Continental Shelf (UKCS) by one third in 2012, according to a new report by Deloitte, the business advisory firm. The report, compiled by Deloitte’s petroleum services group (PSG), which documents drilling and licensing activity across North West Europe for the whole of last year, shows 65 exploration and appraisal wells were drilled on the UKCS in 2012, marking a 33% increase on last year’s total of 49. This compares to lower drilling activity levels reported in Norway in 2012, down by 19% when compared to the previous year.

Statoil has awarded the contract for drilling services on the Mariner platform on the U.K. continental shelf to U.K.-based Odfjell Drilling. Odfjell Drilling will perform drilling services, maintenance of the drilling facility and drill pipe logistics for the Mariner field development, with options also on the Bressay field development. Casing, tubing running services and modifications to the drilling facility is also optional in the contract. The contract duration is four years from November 2016 plus 3x2 years options. The contract has an estimated value of GBP 160 million.

Offshore Wind Industry May Generate $57 Billion for U.K. by 2050: Report The British government estimated that the offshore wind industry may contribute more than $57 billion to the economy by 2050, if the cost of the technology is cut quickly enough, according to a report by Bloomberg. The industry must cut costs 25 percent by 2020 and pare the estimated 3.1 million pounds per megawatt needed to pay for wind turbines installed offshore, according to a report published by the Department of Energy and Climate Change in London today. The U.K. plans to install 18 gigawatts of turbines at sea by 2020, up from about 2 gigawatts now. It’s aiming to obtain up to 15 percent of its energy from renewable sources and to replace aging power plants.

Bloomberg reports that the U.K. could save as much as $5.6 billion by connecting offshore wind farms to each other, cutting down on construction and operating costs. As much as 15 percent of the cost could be knocked off the bill for building wind infrastructure, according to a report today from the Department of Energy and Climate Change and energy regulator Ofgem. The U.K. is seeking to have about 18 gigawatts of turbines at sea installed, up from 2 gigawatts at present,  to meet climate change goals. A European “supergrid,” linking Britain’s electricity network to the continent, could reduce the cost of connecting offshore wind farms by a quarter, according to the U.K. parliamentary Energy and Climate Change Committee.

Total SA’s Elgin platform leaked gas for a third day in the U.K. North Sea, and neighboring rigs were evacuated to guard against the risk of an explosion. The platform was evacuated and production halted after a “well control problem” caused a leak on March 25. Total has flown in outside experts to help stem the flow of fuel, which prompted Royal Dutch Shell Plc. to move staff from its neighboring Shearwater field. The Elgin and Franklin fields, which send oil and gas through the platform, supply about 15 percent of Forties crude, the biggest component of Dated Brent used to price more than half of the world’s oil. As well as gas, about 23 metric tons of condensate…

Norway’s oil industry has objected to the EU initiative. They believe that the EU has very little expertise in offshore operations, and there may be negative consequences if it tries to regulate safety on the Norwegian Continental Shelf, reports Aenergy. A united UK oil industry shares the Norwegians’ criticism of the proposed regulations, believing they are a threat to offshore safety. “I have been in contact with the Norwegian Oil and Energy Minister Ola Borten Moe about this matter and we share a common line. Norway and the UK can confirm that we have the most robust safety regime in the world. This dynamic work must in no way be undermined or put at risk,” Charles Hendry, Conservative Minister of State, Department for Energy and Climate Change, tells Aftenbladet.

The cable maintenance agreement is designed to ensure that the transmission link is inspected and maintained properly over its service life. •        A framework agreement for cable related incidents, such as repairs, surveys and re-burial activities. •        The selection of Global Marine Energy as the preferred subsea cable repair contractor. •        The production of a set of agreed procedures to cover submarine cable related incidents at the Ormonde site. A leader in the Offshore Transmission Regime (OFTO), Transmission Capital Partners was selected by Ofgem in 2010 to run the transmission link for the 150 MW Ormonde offshore windfarm off the Cumbrian coast.

- News comes amid EU attempts to change safety rules. The UK government unit responsible for monitoring offshore safety has become increasingly active in the wake of the Gulf of Mexico oil spill, according to international law firm Pinsent Masons. Energy specialists at the firm say that the number of inspections carried out by the Offshore Environmental Inspectorate (OEI), part of the Department of Energy and Climate Change, have increased by over 70% since 2007. Inspections are also on course to rise by around a third since the Gulf of Mexico spill.

'Wave & Tidal Energy Analysis to 2030 for US, Canada, the UK, Portugal, Australia and Republic of Korea (South Korea)' report issued. Governments are embracing marine power as they attempt to combat climate change & an increasing dependence on fossil fuel and the UK has huge potential for marine power and is considered the most attractive destination to develop marine projects in Europe. Development in the ocean energy sector could significantly reduce greenhouse gas emissions and pollution, create direct and indirect employment, and lead to the economic development of coastal areas. It shows that the marine energy industry is in the emerging stages of development, and the UK is home to the R&D resources needed to further develop these power generation technologies.