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NCDMB visits Aveon Offshore Limited facility in Port Harcourt

 During the visit, Aveon’s senior management presented a quick synopsis of its current projects, investments in technology and equipment, human resources, civil infrastructure and other yard upgrade works. The visit also included a tour of the 300,000 sqm fabrication yard where the visitors saw some of the key yard assets including the cranes, new paint workshops, the duplex workshop, etc. The team also saw some of the ongoing projects such as the Egina Buoy, the Egina SPS manifolds and jumpers and the slipway under construction for the launching of the Egina Buoy. At the end of the visit, a debrief on the tour was done by Aveon senior management and comments were received from the Executive Secretary and the IOCs senior representatives.

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Summing up his impressions, Engr. Wabote commented that, “It’s been an impressive story; all the International Oil Companies Aveon has worked for have given positive feedback on Aveon Offshore even the major contractors that sub-contracts jobs to them, the likes of Saipem have also commended the activities of Aveon Offshore. We are seeing a company that has thought through the entire process in terms of HSE, in terms of Quality and are committed to it. This is one fabrication yard that we think is doing very well, they are wholly indigenous and also fully established in the Niger Delta, creating employment for Nigerians and also supporting the oil and gas industry.”

The Chairman of Aveon Offshore Limited, Mr. Tein George thanked Engr. Wabote, the entire NCDMB senior management team and the IOCs representatives for their visit. He also acknowledged the support of key industry players such as NNPC, NCDMB and the IOCs such as Shell, Total, Chevron and Exxonmobil for Aveon Offshore these last ten years. He expressed Aveon’s faith in Nigeria and our determination to continue to invest and contribute our quota to National development.

Aveon Offshore applauds the NCDMB board on the implementation of the NOGICD Act which has made it possible for local companies such as Aveon to grow and prove their capabilities in delivering quality services efficiently and competitively in the Nigerian oil and gas industry. As a result of the empowerment arising from the Act, Aveon has been able to employ over a thousand Nigerians, trained and developed them to deliver services to international standards.

Aveon Offshore Limited is a wholly owned Nigerian company established in 1999 to provide Engineering, Procurement, Construction and Fabrication services primarily to the Oil & Gas industry in the West African sub-region. Aveon Offshore ensures it delivers world class services in offshore and onshore fabrication, subsea fabrication and offshore support in an ethically acceptable manner with adherence to the highest safety standards and sensitivity to the environment.

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Rex International Holding maps out value creation strategy for Norway

Rex International Holding Limited (“Rex International Holding”, “Rex” or the “Company”, and together with its subsidiaries, the “Group”), a new-generation technology- driven oil company, has mapped out a value creation strategy for its assets in Norway - particularly in the North Sea - built on the Group’s unique technology-led, de-risked exploration approach. Development feasibility studies are being carried out on the Edvard Grieg South (Rolvsnes) (“EGS”) discovery in licence PL338C made in December 2015, for which a recent Gaffney, Cline & Associates (“GCA”) Qualified Persons Report¹ (dated 10 March 2017) disclosed GCA’s independent assessment of gross contingent resources attributable to the PL338C licence, on an unrisked basis, of up to 77.9 million barrels of oil (3C resources: high estimate of potentially recoverable oil from the discovery) and up to 78.7 billion standard cubic feet of natural gas (3C resources: high estimate of potentially recoverable gas from the discovery).   Rex’s 87.84 per cent subsidiary Lime Petroleum Norway AS (“Lime Norway”) holds a 30 per cent stake in the licence. The Group expects test production from EGS to start in 2019.

Infrastructure-led strategy to fast-track value creation

Mr Måns Lidgren, CEO of Rex International Holding, said, “EGS is a prime example of our technology and infrastructure-led strategy in Norway. The EGS discovery is located near to Johan Sverdrup, one of the five largest oil fields on the Norwegian continental shelf with expected resources of between 1.9 to 3.0 billion barrels of oil², and adjacent to the producing Edvard Grieg and Ivar Aasen fields with estimated combined reserves of some 400 million barrels of oil³. We have used our Rex Virtual Drilling technology to select and build a cluster of investments in this oil prolific area that already has pipeline infrastructure in place, allowing a fast-track path to potential commercialisation and return on investment (ROI) when we make more oil discoveries. To this end, Lime Norway also holds a 20 per cent interest in licence PL815, where the undrilled Goddo prospect is believed to be a geological continuation of the EGS discovery, as well as a 30 per cent stake in licence PL818 comprising the Orkja prospect located within easy tie-back distance to the Ivar Aasen field. Our aim is to prove up these adjacent fields in the mid to long term to grow our pool of resources, on top of achieving production in EGS in the short term.”

1 Source: http://rex.listedcompany.com/misc/QPR2016.pdf

2 Source: https://www.statoil.com/en/what-we-do/johan-sverdrup.html

The EGS discovery made in December 2015 is located in water depths of about 100 metres on the prolific Utsira High, and is the second discovery in licence PL338C. The first discovery was made in exploration well 16/1-12 in 2009, which proved a 42-metre oil column in fractured granitic basement.

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3 Sources: https://www.lundin-petroleum.com/eng/development_EdvardGrieg.php; http://www.akerbp.com/en/production-started-at-the-ivar-aasen-field/

Rex Virtual Drilling an effective exploration de-risking tool

The EGS discovery well was the first time that the Group’s Rex Virtual Drilling (“RVD”) technology was applied to an unconventional weathered and fractured basement reservoir. RVD has also proven to be highly accurate in predicting dry wells. Over the past two years, Lime Norway has declined participation in more than 15 licences in Norway after RVD analyses. All the wells that were subsequently drilled in these licences came up dry, saving the Group millions of dollars in futile capital expenditure.

Rex’s multi-attribute version of the technology, RVD version 3 (“RVDv3”), can identify the location of oil reserves using conventional seismic data, independent of porosity and permeability estimates from conventional geological studies; hence further de-risking the exploration assets.

“Risk and commercialisation are the two key factors guiding smart exploration in the region. Exploration and drilling remain hugely expensive and time-consuming, so any technology that can de- risk these activities – especially in a low oil-price environment – is incredibly valuable,” added Mr Måns Lidgren.

Optimisation of Lime Norway’s portfolio

“Exploration in Norway continues to benefit from long-term political stability and an exploration- friendly tax structure, which enables accredited pre-qualified petroleum companies such as Lime Norway to be eligible for tax rebates of 78 per cent of their upfront exploration costs,” said Mr Måns Lidgren.

Lime Norway secured a two-year extension of a credit facility of NOK 400 million (about US$46 million) in December 2016.

Over the past months, Lime Norway has reviewed and optimised its portfolio of licences to build an enviable portfolio of exploration licences that showcases its unique approach to exploration and commercialisation. Licences failing to meet prospectivity criteria set by RVD and conventional geological evaluations have been relinquished to reduce future capital expenditure.

Today, the Group holds in total interests in six offshore assets in Norwegian waters, spanning the established oil fields of the North Sea and Norwegian Sea, as well as the less-developed Barents Sea. The Group believes these holdings offer a balance between longer term development prospects and more short term assets that are close to existing pipeline infrastructure, resulting in a clear and fast route to potential commercialisation and ROI. Lime Norway is also evaluating several farm-in opportunities that are already oil producing, which would offer financial and tax benefits in addition to reducing overall business risk.

Besides the three licences in the North Sea, Lime Norway holds a 20 per cent interest in licence PL841 in the Norwegian Sea, alongside operator Edison Oil (40 per cent), Statoil (20 per cent) and the Norwegian government-owned Petoro (20 per cent). The block had previously been explored in the 1990s. Current technologies, including RVDv3, indicate that a well drilled then, to be a missed discovery. RVDv3 will be used to determine whether commercialisation is now viable.

The Group’s other licence in the Norwegian Sea is PL762, which covers the entirety of the Vagar prospect, is also currently being evaluated using RVDv3.

More than half of the estimated oil and gas resources in Norwegian waters remain to be produced4. In addition to developing prospects in established areas, the Group is also active in the further afield Barents Sea South region, where Lime Norway holds a 20 per cent share of the PL850 licence, east of the producing oil field Goliat. Once again, RVDv3 offers the Group the opportunity to invest in drilling in this field only when it is satisfied that commercial returns can be potentially realised for partners and shareholders.

Rex’s Norway strategy is underpinned not only by its technology, but also by the experience of the specialist Lime Norway team, led by CEO Terje Hagevang.

“Our vision is for Lime Norway to be an oil producing company, with oil reserves of more than 100 million barrels of oil and at least 10 concessions prospected with Rex Virtual Drilling. We are working towards these aspirations,” said Mr Terje Hagevang.

About Lime Petroleum Norway AS

Lime Petroleum Norway AS (“Lime Norway”) is a small and fast growing exploration company established in 2012 in Skøyen in Oslo. The Company was pre-qualified in February 2013 and has since built a balanced portfolio of licences in frontier and mature areas. The company uses state-of-the-art data and Rex Virtual Drilling technology, in addition to market seismic attributes, in its exploration efforts.

Lime Norway's vision:

x To be an oil-producing company;

x To have oil reserves of more than 100 million barrels;

x To have at least 10 concessions all upgraded with Rex Virtual Drilling; and

x To be a listed company, subject to necessary regulatory approvals.

About Rex International Holding

Rex International Holding was listed on Singapore Exchange Securities Trading Limited’s Catalist Board on 31

July 2013. The Company owns a key set of proprietary and innovative exploration technologies, Rex Technologies, originating from the Company’s Swedish founders. These include the game-changing Rex Virtual Drilling technology, the world’s first direct hydrocarbon detector using seismic data, which literally enables the Group to ‘see oil in the ground’ by pinpointing the location of oil reservoirs in the sub-surface. Through the exploration accuracy of Rex Technologies which are applicable to both onshore and offshore oil exploration, the oil discovery success rate is significantly increased. The Company also owns the unique Rexonic ultrasound technology which is used for well bore cleaning which allows for significantly increased oil production in wells that have issues with clogging and deposits.

Rex International Holding has stakes in exploration assets in the Oman, Norway, the US and Trinidad & Tobago. These offshore and onshore concessions cover an aggregate area of over 19,000 square kilometres in regions known for previous oil and gas discoveries. Located in politically stable countries with well-developed oil and gas infrastructures, Rex International Holding has a portfolio of assets that is geographically diversified and consists of both onshore and offshore concessions.

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North Sea region will see 30 crude and natural gas projects start operations by 2020, says GlobalData

Despite the low cycle that the market is facing, a total of 30 crude and natural gas projects are expected to start operations in the North Sea by 2020. The UK will lead with a total of 19 projects, followed by Norway with 10 and Denmark with a single project, according to research and consulting firm GlobalData.

2017 04 20 114457The company’s latest report states that the North Sea has seen improvements during the downturn cycle witnessed over the last three to four years. Projects being sanctioned now have costs around half of those sanctioned in 2013, showing the companies have made clear improvements in cost efficiency. Operating costs have also halved from nearly US$30 per barrel to just over US$15 per barrel, while the production forecast has seen an increase from 2016 - a trend that is set to continue as new fields are brought on stream.

The total recoverable reserves for the 30 projects expected to start in the North Sea stand at 5.2 billion barrels of oil equivalent (boe). Statoil ASA holds the most reserves (1.6 billion boe), followed by Lundin Petroleum AB (635.9 million boe), Petoro AS (610 million boe), A.P. Moller Maersk A/S (414 million boe) and Aker BP ASA (381.2 million boe).

Luis Pereira, Upstream Analyst for GlobalData, explains: “Of the 30 upcoming North Sea projects, 22 are crude oil projects and eight are gas projects. Norway will dominate oil production, while the UK will dominate gas production. The key planned projects in the North Sea are expected to contribute around 690 thousand barrels of oil per day (mbd) to global crude production and about 1,255 million cubic feet per day (mmcfd) to global gas production in 2020.”

The planned projects in the North Sea are expected to require a total capital expenditure (capex) of US$56.7 billion, of which over half (54%) is expected to be spent between 2017 and 2020.

Norway will lead in terms of capex, spending about US$19.3 billion during the forecast period, of which nearly US$12.9 billion will be spent on Johan Sverdrup. At the company level Statoil will have the highest capex spending, and is expected to spend a total of US$19.1 billion on key planned projects through 2020.

According to Pereira, ten more fields are lined up to start production in the North Sea between 2021 and 2023. This will represent a further capex investment of US$7.5 billion in the region, and will add 1 billion boe to the recoverable reserves.

- Comments provided by Luis Pereira, Upstream Analyst for GlobalData.

- Information based on GlobalData’s report: H1 2017 Production and Capital Expenditure Outlook for Key Planned Upstream Projects in North Sea.

- This report was built using data and information sourced from proprietary databases, primary and secondary research, and in-house analysis conducted by GlobalData’s team of industry experts.

About GlobalData

GlobalData is a leading global research and consulting firm offering advanced analytics to help clients make better, more informed decisions every day. Our research and analysis is based on the expert knowledge of over 700 qualified business analysts and 25,000 interviews conducted with industry insiders every year, enabling us to offer the most relevant, reliable and actionable strategic business intelligence available for a wide range of industries.

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OMNOVA Solutions Foundation Presents $50,000 Grant to Support Oil & Gas Studies in Rice University's Chemical and Biomolecular Engineering Program

OMNOVA Solutions (NYSE: OMN), through its charitable Foundation, recently presented a $50,000 grant to Rice University's Chemical and Biomolecular Engineering (CHBE) program. This follows a $30,000 grant to the University's CHBE department last fall.

These gifts will enhance student experiences in oil & gas science and engineering research and education. They will provide undergraduate summer fellowships in research laboratories, augment undergraduate education in chemical engineering laboratories, and sponsor graduate student fellowships in research areas such as oil recovery, industrial water treatment and reuse, asphaltene deposition control, and surface-active chemicals. These are all areas of interest to the oil & gas business of OMNOVA and its major customers.

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"We are delighted to play a part in preparing students at Rice University for exciting and challenging careers in the oil & gas industry," said Jeff Chaapel, General Manager, OMNOVA Oil & Gas. "Rice's reputation as a premier science and engineering research institution draws motivated and talented students from around the world. It's just the type of program we at OMNOVA Oil & Gas want to support."

OMNOVA Solutions Inc. is a global innovator of performance-enhancing chemistries and surfaces used in products for a variety of commercial, industrial and residential applications. As a strategic business-to-business supplier, OMNOVA provides The Science in Better Brands, with emulsion polymers, specialty chemicals, and functional and decorative surfaces that deliver critical performance attributes to top brand name, end-use products sold around the world. OMNOVA's sales for the last 12 months ended February 28, 2017, were $760 million. The Company has a global workforce of approximately 1,950. Visit OMNOVA Solutions on the internet at www.omnova.com.

SOURCE OMNOVA Solutions Inc

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Industry champions sign up to support digital emergency response standard

A TECHNOLOGY-led initiative to transform the way oil and gas workers around the world undertake safety-critical emergency response training has received cross-continent support from organisations keen to be part of its development.

2015 06 16 095233More than a dozen training providers from as far afield as the UK, Netherlands and Brunei to Australia, Abu Dhabi and the US have signed up to become champions of the Digital Standards Integration, an industry programme to create regulated, consistent online safety and training Standards with world-class credibility and compliance.

Companies including Maersk Training, IFAP, MTC International, ERGT Australia, STC-KNRM Offshore Safety, AIS Group, Shell Roberts, M&A Safety Services, Petans, Bastion Technologies, GTSC, Yassine Marine Services, Survival Systems India and Megamas Training will all contribute to the creation, testing and pilot of the digital integration ahead of its launch later this year.

An integral part of ensuring the new digital standard is robust, practical and fit for purpose, the training providers will be involved in shaping the knowledge and learning elements that will transfer from the current standard into the digital version. Some training providers will also make their facilities available for filming live sequences which will be incorporated into the digital elements of the BOSIET course.

They will also be part of the piloting process of the digital elements of the standard in key energy hubs around the world, prior to its full global launch.

The Digital Standards Integration project is spearheaded by industry-owned, not-for-profit safety and workforce development organisation OPITO. International learning technologies leader Atlas Knowledge Group is partnering with OPITO on the creation of the digital Standards and a universal portal through which industry can access them.

“The oil and gas industry is changing and it is vital that the way we set standards, train people and assess competence continues to be relevant, effective and reflects the changing need of employers and workers,” said OPITO International managing director Graham Gall.

“Critical to the market and sought by a number of major employers, the inclusion of a digital element in the training offering represents a significant shift in how the workforce has been trained to date, providing an alternative choice of learning to the traditional classroom-based element of safety standards.

The most widely recognised and accepted set of global standards in the oil and gas industry, OPITO Standards have been adopted by major international and national oil and gas companies in 45 countries. Over 165,000 people per year train to OPITO Standards across the globe.

The need for, and introduction of, digital standards has been unanimously supported by oil and gas employers across the Americas, Africa, Asia Pacific, the Middle East, UK and Europe.

Available on an opt-in basis, the Basic Offshore Safety Induction and Emergency Training (BOSIET), Tropical BOSIET and BOSIET CA EBS will be the first standards launched and made available through the digital offering.

At present, the BOSIET/TBOSIET/BOSIET CA EBS is divided into 40% of classroom learning and 60% practical training. The digital version will provide an interactive, online alternative to the classroom based element with additional knowledge content.

Delivered in US English, it will be for new entrants and others returning to the industry; and the content will be refreshed and updated yearly. It will also include regional specific legislative content, ensuring the training is relevant and specific, no matter which country individuals are working in.

The verifying assessment of a learner’s performance during the practical learning outcomes of the standard will remain unchanged and will continue to be delivered by OPITO’s network of 200 approved training providers around the world.

“This investment by industry for industry is being introduced now to enable a transformational learning choice for new generations of entrants going forward into the oil and gas sector,” added Mr Gall.

“We will continue to engage with a wide cross-section of industry in the months ahead as this long-term initiative progresses.”

The digital BOSIET, TBOSIET and BOSIET CA EBS will be available in Q3 2017.

OPITO delivers standards to improve workforce safety and competency at a global level. With offices in the UK, Asia Pacific, Middle East and the Americas, the organisation works with Governments, academia, national oil companies, multi-nationals and contractors to meet their skills needs to provide independent advice and guidance on effective management of workforce skills development, emergency response and occupational standards and qualifications and quality assurance of training delivery.