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Oil and gas companies must build digital twins of whole systems when they have the money to do so. (Image credit: Siemens Digital Industries Software)

The oil and gas sector is hindered by legacy systems, overconfidence and stagnation

Now that the benefits of artificial intelligence (AI), digital twins and the industrial internet of things (IIoT) are mainstream, executives find themselves asking, “did we fall behind?” The answer is, yes.

MaKinsey Global Institute’s Industry Digitisation Index ranks the oil and gas industry slower to adopt data-centric technologies compared to leaders like banking, media and tech.

The oil and gas sector must act now

Oil is significant everywhere, not just energy and transportation. It’s needed to make fertilisers, food, chemicals, medications and plastics. The economy runs on oil and that will not change any time soon. Though this dependence shields the sector from disruption, it also breeds overconfidence.

During the pandemic we saw something bizarre: the price of oil going negative. The production of oil exceeded demand creating a surplus. Having run out of storage, some outlets were forced to pay others to take inventory off their hands. Geopolitical turbulences shot up prices. The recent price cycle proves a reality of financial strife for oil and gas companies. Therefore, they must act now, when margins
are high.

Imagine a scenario where oil prices drop below US$70 a barrel. At this threshold leadership embraces resilience and operational excellence strategies. They restrict capital expenditures and reduce operational expenses to profit with thinner margins.

When prices and revenue are high, like today, leadership tends to become less concerned about operational excellence. This is a myopic strategy. Resilience and operational excellence are important in high times as they help prepare for the worst times.

So, how do executives embrace resilience and operational excellence in times of high profit? It is not by tightening budgets. It is by investing in data strategies and digitalisation.

Learning from renewables

Consider the competition: renewable and nuclear power. They have limited time and resources to prove a project is profitable — be it solar, wind, geothermal, small modular reactors (SMRs) or fusion. They must make sure when they build a facility, or turn on a generator, that it works right the first time or risk running out of funds. They do this by embracing data strategies and digitalisation from the start. In this way, renewables leapfrogged the oil and gas sector — technologically speaking.

Digital twins, AI, IIoT are all used by renewable energy companies to reduce risk. They help them understand, predict and optimise assets before they exist. By bringing simulation and data analysis into the design, construction and operation of complex systems, they can identify problems, predict maintenance, troubleshoot and assess operational changes risk-free. Only when the data predicts success and regulatory compliance do they implement real world changes.

The key is to transform data into insights, and that’s not an easy thing to do — especially during lower margins. These insights, however, become more precious during those hard times as they help to maintain regulatory compliance and profitability. So, oil and gas companies must digitalise their processes and build digital twins of their entire value chain when they have the money to do so.

But where to start? Top priority must be to implement a data strategy that harmonises and contextualises the information into structures, ontologies and databases. This is because digital twins, AI and IIoT rely on quality and contextualised data to function. Next, make sure people in need of the data have access. Then, and only then, leverage the databases to build algorithms and AI models that simulate real world assets.

The article has been written by Thiago Ribeiro, global head of energy, chemicals and infrastructure at Siemens Digital Industries Software

DeepOcean's EMEA organisation will deploy Orient Adventurer. (Image source: DeepOcean)

Located approximately 60 kilometres offshore Ghana in water depths of around 1,100 metres, production from the Jubilee Field is supported by the FPSO Kwame Nkrumah

It is the central hub for offshore production and associated gas handling operations for one of West Africa's most significant offshore oil developments, with a processing capacity of more than 120,000 barrels of oil per day. 

Delivering complex intervention

A gas lift riser connecting the Jubilee field's subsea system offshore Ghana with FPSO Kwame Nkrumah needs retermination, which will be initiated by DeepOcean for Tullow Ghana as part of a recently signed contract

DeepOcean's EMEA organisation will deploy its subsea construction vessel called Orient Adventurer to support the initiative, which also includes project management, engineering, riser disconnection, deck-side retermination, reconnection and pre-commissioning services.

"We have successfully deployed the Orient Adventurer on previous subsea construction projects in Ghana and are very familiar with the vessel's capabilities in the region. The vessel's vertical lay system (VLS) makes it particularly well suited for the safe and efficient deployment of the risers through the moonpool,” said Robin Mawhinney, executive vice president for DeepOcean’s EMEA region.

Orient Adventurer is back in action following a major upgrade and refurbishment programme. Its 2,500-tonne under-deck carousel and a refurbished Huisman vertical lay system (VLS) with 275-tonne top tension dynamic capacity adds to DeepOcean's fleet capability.

Longstanding presence in West Africa

While DeepOcean's team will be working on the ground in Accra, executing the project, engineering specialists will have them covered from the company's global bases as well. The offshore work will be performed during the fourth quarter of 2026.

“Riser replacement and reactivation are core competencies of our onshore and offshore teams, and we look forward to supporting Tullow in the successful delivery. Our strong local presence in Accra and Takoradi, combined with DeepOcean's technical expertise in subsea riser operations, has been instrumental in securing this award,” said Oyvind Mikaelsen, chief executive officer at DeepOcean. 

DeepOcean's expertise in delivering complex subsea construction and intervention, alongside its long-standing presence in West Africa, makes the company a fitted choice for Tullow's contract. The contract will be executed by DeepOcean Ghana Limited, an indigenous Ghanaian company operating as a joint venture between DeepOcean and its local partner.

 

Valmet ensures cybersecurity in refineries from ground up.

The earliest decisions in a new oil and gas refining project often have the longest impact

Choices involving automation, supplier access, and long-term support can be difficult and expensive to change once the process has been commissioned, yet they will continue to affect reliability, maintenance and operational risk for years. OT cybersecurity is now one of those foundational decisions.

In many industrial projects, however, OT cybersecurity is still treated as something that can be handled later, after the main technology selections have been made and the system design is already moving toward detailed engineering or commissioning.

That approach simply does not work anymore. As industrial systems become more connected and cybersecurity requirements continue to expand, decisions made late in the project can create compliance issues, increase costs, complicate commissioning and leave plant owners with security gaps that are much harder to address after startup.

Oil and gas refineries rely heavily on Operational Technology because the Distributed Control System (DCS) and associated automation can extend through almost the entire refining process. That may include crude handling, distillation, cracking, reforming, hydrotreating, blending, storage and product transfer, along with pumps, compressors, valves, instrumentation, analysers and other equipment. In many refineries, the automation system is involved in nearly everything that happens from the time crude enters the facility until finished products leave it.

However, that also creates cybersecurity concerns as refiners connect more systems for remote support, process optimisation, analytics, cloud applications and other digital technologies.

In many regions, OT cybersecurity is moving beyond a matter of technical preference. Responsibilities are becoming more defined on both sides of the industrial environment. Suppliers must provide products that meet security requirements, while critical infrastructure operators must manage cybersecurity risk throughout their operations.

This shift is creating a particular challenge in Engineering, Procurement and Construction projects, where EPCs are often responsible for bringing together the many suppliers required to deliver a complete oil and gas refinery or other industrial asset.

In these projects, the EPC may be responsible for defining the cybersecurity requirements during the project and making sure suppliers meet them. However, once the plant is handed over, the owner is responsible for operating the system securely and maintaining that security over time.

It is like first making a product and then putting the quality in afterwards. It doesn’t work that way. Cybersecurity needs to be taken into consideration from the star.

Cost of late cybersecurity decisions

Once the system architecture is already established, new cybersecurity requirements can be difficult to accommodate without creating additional complexity. Compliance may require new components, changes to existing interfaces and workflows or exceptions that leave the overall system more difficult to operate and maintain.

The cybersecurity requirements also continue after the project is complete. Although the EPC may still deliver the project on time, any compromises made during design can remain with the owner for the next 20 to 30 years. This is particularly important in OT, where industrial systems cannot be patched, modified, or rebooted with the same freedom as conventional IT systems.

In an OT system, a known vulnerability may remain open for some time before the patch can be installed. Software updates in an industrial control system are rarely immediate. Before anything is installed, the automation supplier must determine whether the update applies, test it against the control system, and confirm that it will not interfere with operations.

Even after that work is completed, the plant may not be able to install the update until the next scheduled outage or maintenance window. Until then, the vulnerability remains, which means some other form of protection is required.

This is where support after commissioning becomes critical. Valmet, a worldwide provider of process technologies, automation systems and services, for example, can continue to manage that risk through patch assessment, vulnerability management, monitoring, endpoint protection, and lifecycle support for its automation systems.

OT/IT integration raises the stakes

With modern automation platforms like Valmet DNAe, cybersecurity is built into the underlying architecture. The platform was developed to support IT/OT convergence, with industrial-standard interfaces and edge technology providing connectivity from field-level sensors through to cloud applications. This allows data to move across the system and supports the use of digital intelligence and AI-based tools at different levels of the operation.

Communication and data management are organised through the Trusted Information Framework, or TIF, which forms the foundation of the Valmet DNAe Distributed Control System. Security measures including authentication, role-based access control, encryption, endpoint protection and audit trails are incorporated into that framework.

The company’s services are designed to support the entire cybersecurity lifecycle. This includes determining which patches are required for specific automation systems, testing those patches before they are recommended to customers, and supporting deployment when the operating schedule allows. It also includes vulnerability monitoring, antivirus protection, network detection, secure access management, backup and recovery planning, compliance reporting, and periodic testing as long as the system remains in operation.

Today, cybersecurity belongs in the earliest project conversations because the decisions made during design will remain with the oil and gas refinery long after commissioning. When those questions are left until the end, the refinery may still operate as intended, but securing and maintaining it will usually become more difficult and more expensive.

In the execution process of large-scale oil and gas projects, engineering timelines are constantly threatened by certification bottlenecks. Addressing this critical pain point, European ATEX lighting leader ZALUX has announced a major expansion of its testing capabilities, designed to streamline compliance and accelerate project delivery

ZALUX has officially expanded the scope of its Witness Testing Laboratory in Spain, audited by the French National Institute for Industrial Environment and Risks (INERIS). The facility is now fully equipped to perform in-house enclosure testing according to EN 60079 norms for "Ex e" (increased safety) and "Ex t" (dust ingress protection) equipment, alongside thermal and electromagnetic compatibility (EMC) testing.

"By bringing these critical assessments entirely in-house under witness testing protocols, we are able to reduce R&D and certification cycles," explains Daniel San Bernardino, ZALUX business development manager ATEX & EPC. "This optimises our processes and reduces development times while maintaining the precision, reliability, and traceability required by the ATEX sector."
When asked what makes ZALUX a strategic partner for Middle East EPCs and operators, San Bernardino highlights the company's dual-regional strength:

"We are more than a manufacturer; we are a long-term partner. With a long list of reference international projects, we are an approved vendor for ADNOC, Saudi Aramco, or Qatar Energy and EPCs like Petrofac and SAIPEM. Additionally, our branch in the Dubai Airport Freezone (DAFZA) allows us to provide closer support to regional customers. This local support is combined with certified European manufacturing in our INERIS-audited Spanish facility."

ZALUX at ADIPEC

At ADIPEC, ZALUX will showcase its robust Ex Zones 1 and 2 luminaires. Visitors can explore the flagship STRONGEx G2, a chemical-resistant linear luminaire operating up to 55°C with up to 182 lm/W efficacy and up to 100,000 hours lifespan, alongside the OREx high-bay family, engineered for extreme temperatures from -32°C to +75°C. Together with the rest of the portfolio, these high-efficacy solutions are built to maximise energy savings and lower operational overheads.

By combining rapid in-house testing, certified European manufacturing, and a strategic regional office, ZALUX continues to solidify its position as the preferred partner for global EPCs and oil and gas end-users.

Discover ZALUX’s high-performance luminaires at ADIPEC in Hall 16.

SLB to deploy subsea production system for Rovuma development.

SLB’s OneSubsea joint venture has secured a subsea production systems contract from ExxonMobil Moçambique, Limitada, representing the Area 4 consortium (comprising ENH, CNPC, ENI, KOGAS, and XRG)

The agreement marks a major step forward for the initial phase of Mozambique’s offshore Rovuma LNG development.

Under the terms of the agreement, SLB OneSubsea will handle the engineering, procurement, manufacturing, and installation of subsea trees, manifolds, umbilicals, and control systems tailored for high-efficiency deepwater operation.

"This award reflects our ability to deliver integrated subsea solutions that help customers accelerate development and maximize value from deepwater resources," said Mads Hjelmeland, chief executive officer, SLB OneSubsea. "The Rovuma project represents a significant opportunity for Mozambique’s growing LNG sector, and we look forward to continuing our long-standing relationship with ExxonMobil operations in Africa, bringing our proven technology and expertise to this important phase of the development and beyond."

To assist regional operations and support the project, SLB OneSubsea plans to build a dedicated services facility in Mozambique. This hub is expected to boost local supply chains while generating regional job and training opportunities. 

Previously, the Eni-led Mozambique Rovuma Venture signed a significant contract with Technip Energies, JGC and Samsung Heavy Industries to secure their ongoing project delivery services for the long term on the Coral Norte Floating Liquefied Natural Gas project offshore Mozambique.

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