DEPARTMENTS • ENVIRONMENT, SOCIAL AND GOVERNANCE
ADNOC to apply blockchain
to certify carbon intensity
Abu Dhabi National Oil Company
(ADNOC) and Siemens Energy will pilot
blockchain technology to certify the car-
bon intensity of a range of products. By
using smart sensor data gathered from
across ADNOC’s operational chain, the
pilot will show how much CO 2 was used
to make products such as Murban crude,
ammonia and aviation fuels. This infor-
mation will be automatically recorded
onto a decentralized blockchain ledger.
Such transparency will allow inde-
pendent regulators to certify the carbon
intensity of products.
Equinor is leading the use of rigs fitted with emission reduction technologies,
with 33,618 contracted days between 2020-2032, while the combined number
of contracted days for all other operators is 43,600.
Westwood: More incentives needed to accelerate
adoption of emission reduction upgrades on rigs
New research from Westwood Global
Energy Group reveals that the availabil-
ity of emission-lowering upgrades for
offshore rigs has been on the rise but that
adoption of these new technologies is
slow outside of Norway and the US Gulf
of Mexico due to limited regulatory and
financial incentives.
The report indicates that the biggest
users of rigs fitted with emission reduc-
tion technology are those with ambi-
tious emission goals of their own, driven
largely by Equinor’s Norway and Brazil
operations. Between 2020 and 2032,
Equinor’s contracted days of low-emis-
sion upgraded rigs is 33,618 (92 rig years)
compared with the combined number
of days for all other operators, which is
43,600 rig days (119 rig years).
“Drilling contractors, and the industry
as a whole, are starting to realize that
oil and gas will be imperative to energy
security over the coming years. But that
doesn’t need to come at the detriment
of the energy transition,” said Teresa
Wilkie, RigLogix Director, Westwood.
“Rig operators have ambitious Scope 1
reduction targets, and eco-friendly rig
technology is keeping pace. The next
step is for regulators to work with the
industry to ensure that the framework is
there to facilitate adoption of these new
8 technologies in a financially sustainable
way.” She continued: “Norway is dominating
as the biggest user of low-emission rigs,
driven by the country’s carbon taxation
regulations, as well as incentivization.
Pair this with Equinor’s ambitious emis-
sion reduction targets and you have a
ripe environment for low-emission rig
adoption.” Since the downturn in 2014, newbuild
rig orders have almost come to a halt due
to lack of demand, a mass oversupply
of rigs and a resulting stack of new-
builds abandoned in shipyards with no
work. There is still a lack of appetite to
invest in costly newbuilds and, therefore,
a deluge of “green” newbuild rig orders is
unlikely. Instead, it is expected that more
of the current fleet will be retrofitted for
lower-emission operations.
“Some drilling contractors are at the
beginning of their emissions reduction
journeys, while others have been work-
ing on emission-reducing technologies,
projects and studies for several years,”
Ms Wilkie said. “By amalgamating
the industry’s different and increasing
efforts regarding this complex topic, we
can better understand the trajectory of
the industry, highlight new technologies
and identify the areas of opportunity.”
Oil and gas expertise to help
with well control for CCS
Norway’s state-owned Gassnova has
awarded eDrilling NOK 10 million under
its CLIMIT research program to develop
well control software for carbon capture
and storage (CCS). The project recognizes
that today’s market does not have the well
control technology needed to address the
risks for underground leakage with full-
scale CO 2 storage. By leveraging its experi-
ence with well control of petroleum wells,
eDrilling expects it can reduce the time
and resources needed to launch reliable
software for well control in CO 2 wells. The
development will also aim for easy inte-
gration with existing systems.
APA cuts upstream routine
flaring in Egypt by 40%
APA Corp has achieved a compensa-
tion-linked ESG goal to reduce upstream
routine flaring across Egypt operations
by 40%. The goal was reached ahead of
schedule and is the result of numerous
emissions reduction projects executed in
Egypt throughout 2022.
To achieve the 40% flare reduction goal,
technical teams in Egypt identified a
series of emissions reduction initiatives.
The projects included the installation of
new compressors to move gas from flar-
ing to sales and implementing flare-to-
power generation processes that move
previously flared gas to power genera-
tion, which eliminated the need for diesel-
based power generation.
JAN UARY/FEB RUARY 2023 • D R I LLI N G CO N T R ACTO R