24 THE PRESS AND JOURNALDecember 2014 Energy THE PRESS AND JOURNAL

December 2014Energy 25SPOTLIGHT & NEWS SPOTLIGHT & NEWS

INDEPENDENTTHINKING

WEATHERVANE

Gordon McKinstry

Export controls: The new effectof EU sanctions on Russia

Thunderstorms and lightning– very, very frightening?

ated by cumulonimbus clouds –these are huge towering clouds thatcan extend up to 13,716m (45,000ft)in the atmosphere.

Within these clouds, hail can cir-culate up and down creating a staticcharge – this is amplified in the verytall cumulonimbus clouds due tothe significant updrafts and down-drafts within them.

Lightning presents different risksto offshore objects such as oil rigs,windfarms, vessels and helicoptersto 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 becancelled or routes diverted becauseconditions are particularly turbulentin these conditions.

This can pose challenges for off-shore operations that rely on heli-copters to transfer personnelquickly and safely to work on the oilrigs. To put this into perspective,there are as many as one hundredhelicopter movements every day inthe North Sea to the north-east ofAberdeen, plus a significant numberof flights over Danish and Norwe-gian waters.

Helicopter operations are particu-larly susceptible to lightning strikesduring the winter season. These arenot always natural lightning strikes,they are a phenomenon called “in-duced” or “triggered” lightning.

This is where the aircraft has astatic charge and a cloud near theaircraft also has a static charge, butnot enough to generate lightning.However, depending on the temper-ature profile of the clouds, lightningmay be induced between the air-craft and the cloud as the aircraftpasses.

Triggered lightning strikes overthe North Sea tend to be reportedbetween early October and the endof March.

A triggered lightning strike forced

a helicopter to ditch in the NorthSea in January 1995 (Air AccidentsInvestigation Branch, 1997). Simi-larly, triggered lightning was a fac-tor in a fatal accident that occurredin July 2002 (Air Accidents Investi-gation Branch, 2005).

Although more recently therehave been no events of this severity,helicopters do continue to sufferlightning strikes, with one to threestrikes occurring in the North Seaeach winter season.

Due to improvements made inhelicopter design, all helicopters arenow expected to survive a lightningstrike. However, as a lightning striketo a helicopter is inconvenient, ex-pensive and has many safety-relatedissues, the most sensible option is totry and prevent the lightning strikesfrom occurring by keeping the air-craft away from at-risk areas. This iswhere forecasting comes in.

The good news is that modernweather science means that we canpredict lightning activity very accu-rately. Ultimately, we do this bycombining high resolution modelsand state-of-the-art cloud physics.

At the Met Office in Aberdeen weare continually monitoring condi-tions to provide accurate and reli-able forecasts and monitor lightningdischarges as they happen. We alsotrack lightning discharges across the

globe so we have an accurate world-wide picture of lightning.

Research is helping to determinehow our changing climate mightimpact the weather we experiencein the future, including the fre-quency and severity of weatherevents such as thunderstorms andlightning.

Current research from the Uni-versity of California suggests thatthe frequency of lightning strikes islikely to increase with climatechange in the US.

However, more research is neededto determine the impact of climatechange on lightning in other areasof the globe. This is part of the MetOffice’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 industrywith a far clearer picture than waspreviously possible.

More detailed information helpskeep people safe, reduce costs asso-ciated with damage caused by light-ning strikes and also helps keepbusinesses operational.

Being able to detect the locationof thunderstorms is of great impor-tance to public safety as it is notonly the lightning strike that is dan-gerous, but many other factorslinked to thunderstorms. These in-clude intense rainfall, large hail andtornadoes.

So the next time you see a thun-der and lightning storm don’t justthink about the inherent risks asso-ciated with them. Instead you canalso take comfort in the fact thatthey can be forecast, monitored andunderstood with the aim of keepingeveryone as safe as possible.

Gordon McKinstry is an offshoreforecaster at the Met OfficeFollow @MetOfficeB2B for industrynews

Take comfort in the fact that these storms can be forecast, monitored andunderstood with the aim of keeping everyone as safe as possible

The sound of thunder and the sightof lightning often generate differenttypes of reactions from people.

Sometimes experiencing a thun-der and lightning storm can be veryexciting and the sight of the light-ning really quite spectacular but thethought 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 dowe, 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 fieldset for upgradeIsrael’s Tamar gas field may be upgradedat a cost of $1.5-2billion, including theconstruction of a subsea pipeline to aplant in Egypt run by Spain’s UnionFenosa Gas.

Tamar’s partners are considering ex-panding production with three new wellsand upgrading a production platformnear Ashkelon, with the aim of doublingthe field’s capacity to 20billion cu.m an-nually, according to Delek Group, whichowns Tamar together with Noble Energyof Texas and Israel’s Isramco and DorAlon.

The pipeline is contingent on the part-ners signing a supply deal with UFG, itsaid. Delek said the expansion pro-gramme should be complete by 2017.

Golden EagleOffshore swoopsNorway-based Golden Energy Offshorehas entered into management contractsfor two PX121 designed platform supplyvessels under construction at UlsteinVerft for Blue Ship Invest. The vessels aredue for delivery in Q1 2015.

The bullnose (X-Bow) Ulstein PX121 de-sign has proven to be very attractive, anda total of 30 vessels of this type has beenordered by various ship owners for con-struction at shipyards around the world.

Petronas takesIrish gambleMalaysian state company Petronas has,via subsidiary PSE Kinsale Energy, en-tered into a farm-in deal with LansdowneOil & Gas for a block in the Celtic Sea off-shore Ireland.

As a result, Kinsale Energy will acquirean 80% stake and become operator ofSEL 4/07 block subject to Dublin’s ap-proval. In return, Kinsale will pay all ofthe costs of drilling a well on the Midle-ton prospect and fund Lansdowne’s shareof the costs of any testing programme upto $2.5million.

As the European Union’s (EU) sanc-tions continue against Russia, a keygeography in the global oil and gasindustry, EY oil & gas indirect taxpartner Niall Blacklaw, discusses theimportance of export controls withAlexandra Turner, export controlsspecialist with the EY Global TradeTeam.

■ Why are sanctions in placeagainst Russia and when didthey come into effect?Due to the international policies ofthe US, the EU and other govern-ments around the world, sanctionshave been implemented againstRussia in relation to the current sit-uation in the Ukraine.

The use of sanctions by govern-ments, in some form or another, hasoccurred for years and is imple-mented as a diplomatic tool,whether unilaterally ormultilaterally, in orderto influence or pun-ish target govern-ments in reactionto certain policiesor actions.

The EU sanc-tions came into ef-fect overnight onJuly 31, 2014.

■ What was the impact of thesanctions on the oil and gasindustry?During the considerations of whatsanctions should be implemented, itwas clear the oil and gas industrywould be affected due to Russia’srole in gas production.

However, there was no open dia-logue with the oil and gas industryto clearly outline what the sanctionswould encompass or how the indus-try would be affected.

Prior to the implementation ofthese sanctions, many items ex-ported to Russia for the oiland gas industry, and the cor-responding services providedon 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 didthey anticipate the extent of

the reach of the EU sanc-tions.

For example, manycompanies would nothave been prepared to

dramatically alter or stop theiroperations overnight when thesanctions came into effect, espe-cially with regards to activities thatsafeguard the health and safety ofpersonnel.

■ Are oil and gas companiesfully aware of the broader exportcontrol implications?Now the sanctions have been inforce for some time, companies mayfeel comfortable they know what todo in order to, for example, applyfor licences to export items to Rus-sia, screen transactions against thesanctioned individuals, and stop allprohibited activities.

However, have companies consid-ered whether services being pro-vided in Russia by EU nationalsconstitute “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 sanctionsregulations?

■ What do oil and

gas companies need to do nowto ensure compliance?Companies need to be aware of cap-tured services and activities andhow authorities will deal with com-panies who may not have been ableto stop activities overnight. Each sit-uation will be slightly different.

However, if they have not already,companies should begin analysingthe extent of the effect of the EUsanctions on their activities in Rus-sia and implement a licensing plan.

“Helicopter operationsare particularlysusceptible tolightning strikes duringthe winter season.These are not alwaysnatural lightningstrikes, they are aphenomenon called‘induced’ or ‘triggered’lightning”

EY oil & gasindirect taxpartner Niall

Blacklaw

Sanctions have beenimplemented against Russiain relation to the currentsituation in the Ukraine

Ulstein gets Dutchrock dumperNorwegian ship designer and builder Ul-stein has been awarded the design andequipment contract for Van Oord’s new154m subsea rock installation (SRI) vesselBravenes.

Working in close cooperation with theDutch Group, this is the first fully inte-grated design where Ulstein is responsiblefor the development and integration ofboth the mission equipment and vessel de-sign.

The X-bow vessel will be constructed atSinopacific Shipbuilding Group in Chinaand be delivered in 2016.

Compagnie Maritime Monégasque SAMhas secured contracts with Petrobras Brazilto charter five new-build fast oilspill re-sponse vessels with a new and innovativevariation of the highly fuel-efficient DamenSea Axe design.

Three vessels will start operating by endof December next year and two by the endof June 2016. The four-year firm contracthas a value of $130million and is mutuallyextendable for a further four-year term.

All of the vessels are being built byDutch ship designer and builder Damen,and will have state-of-the-art guidance andpropulsion systems with built-in redundan-cies.

Cutting edge Axe-bows for Brazil

Alexandra Turner,export controls

specialist with the EYGlobal Trade Team

©2013

EYGM

Limited.A

llRights

Reserved.ED

0115.

LAYING THE INFRASTRUCTUREFOR SUCCESS TAKES MORETHAN LUCK

For more information, visitey.com/oilandgas.

Follow us @EY_OilGas