1. 24 THE PRESS AND JOURNAL
December 2014 Energy THE PRESS AND JOURNAL
December 2014Energy 25SPOTLIGHT & NEWS SPOTLIGHT & NEWS
INDEPENDENT
THINKING
WEATHERVANE
Gordon McKinstry
Export controls: The new effect
of EU sanctions on Russia
Thunderstorms and lightning
– very, very frightening?
ated by cumulonimbus clouds –
these are huge towering clouds that
can extend up to 13,716m (45,000ft)
in the atmosphere.
Within these clouds, hail can cir-
culate up and down creating a static
charge – this is amplified in the very
tall cumulonimbus clouds due to
the significant updrafts and down-
drafts within them.
Lightning presents different risks
to offshore objects such as oil rigs,
windfarms, vessels and helicopters
to name but a few.
If we take the example of heli-
copters, thunderstorms and light-
ning have the potential to cause sig-
nificant disruption. Flights may be
cancelled or routes diverted because
conditions are particularly turbulent
in these conditions.
This can pose challenges for off-
shore operations that rely on heli-
copters to transfer personnel
quickly and safely to work on the oil
rigs. To put this into perspective,
there are as many as one hundred
helicopter movements every day in
the North Sea to the north-east of
Aberdeen, plus a significant number
of flights over Danish and Norwe-
gian waters.
Helicopter operations are particu-
larly susceptible to lightning strikes
during the winter season. These are
not always natural lightning strikes,
they are a phenomenon called “in-
duced” or “triggered” lightning.
This is where the aircraft has a
static charge and a cloud near the
aircraft also has a static charge, but
not enough to generate lightning.
However, depending on the temper-
ature profile of the clouds, lightning
may be induced between the air-
craft and the cloud as the aircraft
passes.
Triggered lightning strikes over
the North Sea tend to be reported
between early October and the end
of March.
A triggered lightning strike forced
a helicopter to ditch in the North
Sea in January 1995 (Air Accidents
Investigation Branch, 1997). Simi-
larly, triggered lightning was a fac-
tor in a fatal accident that occurred
in July 2002 (Air Accidents Investi-
gation Branch, 2005).
Although more recently there
have been no events of this severity,
helicopters do continue to suffer
lightning strikes, with one to three
strikes occurring in the North Sea
each winter season.
Due to improvements made in
helicopter design, all helicopters are
now expected to survive a lightning
strike. However, as a lightning strike
to a helicopter is inconvenient, ex-
pensive and has many safety-related
issues, the most sensible option is to
try and prevent the lightning strikes
from occurring by keeping the air-
craft away from at-risk areas. This is
where forecasting comes in.
The good news is that modern
weather science means that we can
predict lightning activity very accu-
rately. Ultimately, we do this by
combining high resolution models
and state-of-the-art cloud physics.
At the Met Office in Aberdeen we
are continually monitoring condi-
tions to provide accurate and reli-
able forecasts and monitor lightning
discharges as they happen. We also
track lightning discharges across the
globe so we have an accurate world-
wide picture of lightning.
Research is helping to determine
how our changing climate might
impact the weather we experience
in the future, including the fre-
quency and severity of weather
events such as thunderstorms and
lightning.
Current research from the Uni-
versity of California suggests that
the frequency of lightning strikes is
likely to increase with climate
change in the US.
However, more research is needed
to determine the impact of climate
change on lightning in other areas
of the globe. This is part of the Met
Office’s global climate research ef-
fort.
Over the last 20 years, improve-
ments in modelling and forecast ac-
curacy have meant that we can pro-
vide people in the offshore industry
with a far clearer picture than was
previously possible.
More detailed information helps
keep people safe, reduce costs asso-
ciated with damage caused by light-
ning strikes and also helps keep
businesses operational.
Being able to detect the location
of thunderstorms is of great impor-
tance to public safety as it is not
only the lightning strike that is dan-
gerous, but many other factors
linked to thunderstorms. These in-
clude intense rainfall, large hail and
tornadoes.
So the next time you see a thun-
der and lightning storm don’t just
think about the inherent risks asso-
ciated with them. Instead you can
also take comfort in the fact that
they can be forecast, monitored and
understood with the aim of keeping
everyone as safe as possible.
Gordon McKinstry is an offshore
forecaster at the Met Office
Follow @MetOfficeB2B for industry
news
Take comfort in the fact that these storms can be forecast, monitored and
understood with the aim of keeping everyone as safe as possible
The sound of thunder and the sight
of lightning often generate different
types of reactions from people.
Sometimes experiencing a thun-
der and lightning storm can be very
exciting and the sight of the light-
ning really quite spectacular but the
thought of it can also be quite un-
settling – a natural reaction, espe-
cially if you are working in the off-
shore industry.
So what is lightning and how do
we, at the Met Office, predict it?
Thunderstorms tend to be gener-
Are oil and gas companies fully aware of the broader export control implications?
Israeli gas field
set for upgrade
Israel’s Tamar gas field may be upgraded
at a cost of $1.5-2billion, including the
construction of a subsea pipeline to a
plant in Egypt run by Spain’s Union
Fenosa Gas.
Tamar’s partners are considering ex-
panding production with three new wells
and upgrading a production platform
near Ashkelon, with the aim of doubling
the field’s capacity to 20billion cu.m an-
nually, according to Delek Group, which
owns Tamar together with Noble Energy
of Texas and Israel’s Isramco and Dor
Alon.
The pipeline is contingent on the part-
ners signing a supply deal with UFG, it
said. Delek said the expansion pro-
gramme should be complete by 2017.
Golden Eagle
Offshore swoops
Norway-based Golden Energy Offshore
has entered into management contracts
for two PX121 designed platform supply
vessels under construction at Ulstein
Verft for Blue Ship Invest. The vessels are
due for delivery in Q1 2015.
The bullnose (X-Bow) Ulstein PX121 de-
sign has proven to be very attractive, and
a total of 30 vessels of this type has been
ordered by various ship owners for con-
struction at shipyards around the world.
Petronas takes
Irish gamble
Malaysian state company Petronas has,
via subsidiary PSE Kinsale Energy, en-
tered into a farm-in deal with Lansdowne
Oil & Gas for a block in the Celtic Sea off-
shore Ireland.
As a result, Kinsale Energy will acquire
an 80% stake and become operator of
SEL 4/07 block subject to Dublin’s ap-
proval. In return, Kinsale will pay all of
the costs of drilling a well on the Midle-
ton prospect and fund Lansdowne’s share
of the costs of any testing programme up
to $2.5million.
As the European Union’s (EU) sanc-
tions continue against Russia, a key
geography in the global oil and gas
industry, EY oil & gas indirect tax
partner Niall Blacklaw, discusses the
importance of export controls with
Alexandra Turner, export controls
specialist with the EY Global Trade
Team.
■ Why are sanctions in place
against Russia and when did
they come into effect?
Due to the international policies of
the US, the EU and other govern-
ments around the world, sanctions
have been implemented against
Russia in relation to the current sit-
uation in the Ukraine.
The use of sanctions by govern-
ments, in some form or another, has
occurred for years and is imple-
mented as a diplomatic tool,
whether unilaterally or
multilaterally, in order
to influence or pun-
ish target govern-
ments in reaction
to certain policies
or actions.
The EU sanc-
tions came into ef-
fect overnight on
July 31, 2014.
■ What was the impact of the
sanctions on the oil and gas
industry?
During the considerations of what
sanctions should be implemented, it
was clear the oil and gas industry
would be affected due to Russia’s
role in gas production.
However, there was no open dia-
logue with the oil and gas industry
to clearly outline what the sanctions
would encompass or how the indus-
try would be affected.
Prior to the implementation of
these sanctions, many items ex-
ported to Russia for the oil
and gas industry, and the cor-
responding services provided
on the rigs, required no ex-
port control licences or au-
thorisations.
Due to this fact, many oil
and gas companies had no com-
pliance protocols in place for
these items and services. Nor did
they anticipate the extent of
the reach of the EU sanc-
tions.
For example, many
companies would not
have been prepared to
dramatically alter or stop their
operations overnight when the
sanctions came into effect, espe-
cially with regards to activities that
safeguard the health and safety of
personnel.
■ Are oil and gas companies
fully aware of the broader export
control implications?
Now the sanctions have been in
force for some time, companies may
feel comfortable they know what to
do in order to, for example, apply
for licences to export items to Rus-
sia, screen transactions against the
sanctioned individuals, and stop all
prohibited activities.
However, have companies consid-
ered whether services being pro-
vided in Russia by EU nationals
constitute “technical assistance”
which is covered by the sanc-
tions?
Or, whether the use of con-
tracts by EU-incorporated enti-
ties may subject their ac-
tivities to the sanctions
regulations?
■ What do oil and
gas companies need to do now
to ensure compliance?
Companies need to be aware of cap-
tured services and activities and
how authorities will deal with com-
panies who may not have been able
to stop activities overnight. Each sit-
uation will be slightly different.
However, if they have not already,
companies should begin analysing
the extent of the effect of the EU
sanctions on their activities in Rus-
sia and implement a licensing plan.
“Helicopter operations
are particularly
susceptible to
lightning strikes during
the winter season.
These are not always
natural lightning
strikes, they are a
phenomenon called
‘induced’ or ‘triggered’
lightning”
EY oil & gas
indirect tax
partner Niall
Blacklaw
Sanctions have been
implemented against Russia
in relation to the current
situation in the Ukraine
Ulstein gets Dutch
rock dumper
Norwegian ship designer and builder Ul-
stein has been awarded the design and
equipment contract for Van Oord’s new
154m subsea rock installation (SRI) vessel
Bravenes.
Working in close cooperation with the
Dutch Group, this is the first fully inte-
grated design where Ulstein is responsible
for the development and integration of
both the mission equipment and vessel de-
sign.
The X-bow vessel will be constructed at
Sinopacific Shipbuilding Group in China
and be delivered in 2016.
Compagnie Maritime Monégasque SAM
has secured contracts with Petrobras Brazil
to charter five new-build fast oilspill re-
sponse vessels with a new and innovative
variation of the highly fuel-efficient Damen
Sea Axe design.
Three vessels will start operating by end
of December next year and two by the end
of June 2016. The four-year firm contract
has a value of $130million and is mutually
extendable for a further four-year term.
All of the vessels are being built by
Dutch ship designer and builder Damen,
and will have state-of-the-art guidance and
propulsion systems with built-in redundan-
cies.
Cutting edge Axe-
bows for Brazil
Alexandra Turner,
export controls
specialist with the EY
Global Trade Team
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FOR SUCCESS TAKES MORE
THAN LUCK
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