SLB awarded Petrobras contract for subsea seawater injection systems in Brazil

JV deal

SLB's OneSubsea will provide seawater injection systems to boost recovery and cut emissions at Petrobras' Búzios field. Photo courtesy of SLB

Houston energy technology company SLB announced a contract award by Petrobras to its OneSubsea joint venture for two subsea raw seawater injection systems to increase recovery from the prolific Búzios field in offshore Brazil.

The subsea RWI systems will work to increase the production of floating production storage and offloading (Petrobras FPSO) vessels that are currently bottlenecked in their water injection capacities.The RWI systems, once operational, can reduce greenhouse gas emissions per barrel of oil.

“As deepwater basins mature, we see more and more secondary recovery opportunities emerging,” Mads Hjelmeland, CEO of SLB OneSubsea, says in a news release. “Subsea raw seawater injection is a well-proven application with a strong business case that we think should become mainstream. By placing the system directly on the seabed, we free up space and reduce fuel needs for the FPSOs as well as lessen the power needs for the injection systems. It’s a win-win for Petrobras, and one that we are very excited about.”

SLB OneSubsea works to “optimize oil and gas production, decarbonize subsea operations, and unlock the large potential of subsea solutions to accelerate the energy transition,” per to the company.

SLB OneSubsea is contracted to provide two complete subsea RWI systems to support Petrobras’ FPSOs P-74 and P-75. They will consist of a subsea seawater injection pump, umbilical system and topside variable speed drive. In addition,the team will also provide technical support using AI-enabled Subsea Live services, which includes condition monitoring and access to domain experts.

“This contract will consolidate our solid local content presence in the country, contributed by the largest manufacturing plants and state-of-the-art subsea service facilities in Brazil,” Hjelmeland continues.

GA Drilling will work with Petrobras’ R&D center to roll out an autonomous drilling system. Photo via Getty Images

Petrobras teams up with Houston co. to improve efficiency in drilling

offshore optimization

Slovakian geothermal drilling technology company GA Drilling, whose U.S. headquarters is in Houston, has teamed up with Brazilian energy giant Petrobras to reduce well construction costs and well-drilling risks.

Under the new partnership, GA Drilling will work with Petrobras’ R&D center to roll out an autonomous drilling system that enables drilling at offshore wells from a light vessel instead of a costlier semi-submarine or drill ship.

“Taken together, the benefits of our drilling technologies equal better efficiency, leading to lower costs, [a] smaller operational footprint, and ultimately lower risk overall,” Igor Kočiš, co-founder and CEO of GA Drilling, says in a news release.

GA Drilling says its drilling system improves drilling efficiency and enables replacement of conventional drill pipes with lower-risk tubes. Features of the system include drilling automation and control systems, and real-time communications.

In April 2024, GA Drilling announced it had closed on $15 million in funding. Investors included Houston-based oil and gas drilling contractor Nabors Industries, the newly established Underground Ventures geothermal investment fund, and Slovakian venture capital firm Neulogy Ventures.

A year earlier, GA Drilling conducted the first public demonstration of its Anchorbit drilling tool at a Houston test well owned by Nabors. The tool is designed to simplify and improve drilling into high-temperature hard rock formations.

The three award honorees for OTC 2024 have been named and will be honored on May 5. Photo via otcnet.org

Annual offshore conference in Houston names honorees for leadership, sustainable efforts

otc 2024

The 2024 Offshore Technology Conference has revealed the three Distinguished Achievement Award recipients that will be recognized at the conference next month.

OTC, a conference that has served the offshore energy community for over 50 years, will bring 276,000 square feet of exhibit space to NRG Park and welcome over 31,000 attendees for more than 350 sessions. The awards reception will kick off the week on May 5.

One of the awards recipients named is Kerry J. Campbell, who will accept the OTC Distinguished Achievement Award for Individuals. Campbell was selected based on his "work in developing modern deepwater site characterization practice and for teaching and mentoring generations of site characterization professionals," reads the news release.

He's previously co-chaired sessions at OTC and served on a subcommittee for the organization, in addition to co-writing seventeen OTC papers. He retired from Fugro in 2020 after helping integrate 3D marine seismic data for engineering applications.

Petrobras will accept the OTC Distinguished Achievement Award for Companies, Organizations, and Institutions at the May banquet. The company was selected "for the deployment of a wide set of new technologies for the successful revitalization of the Marlim Field and the entire deepwater Campos Basin, unlocking new paths for mature deepwater asset redevelopment, with significant reduction in greenhouse gas emissions," per the release.

For about 50 years, the Campos Basin has been subjected to exploration and is known for various shallow water discoveries. In 1992, Petrobras was recognized for its deepwater development in Marlim, and over 30 years later, the company will be praised for its work redeveloping mature fields and the pioneering subsea, drilling, reservoir and decommissioning technologies.

The third and final award recipient is EnerGeo Alliance, which will receive the OTC Special Citation award for promoting efficiency and environmental sustainability within offshore seismic data collection.

"For more than 50 years, EnerGeo Alliance has been a stalwart in the quest for accessible, affordable energy around the globe, while also being a standard-bearer for safety and the environment," reads the release. "EneGeo Alliance has set the standard in the energy geoscience industry by establishing best practices and recommended guidance in key energy areas, including its Environmental Impact Assessment Handbook and Greenhouse Gas Emissions Guidance, for its members."

Virginia-based Leidos has extended its work with Houston-based Nauticus Robotics. Photo via LinkedIn

Engineering tech co. expands collaboration with Houston robotics startup in $2.1M contract extension

underwater moves

A major customer of Webster-based Nauticus Robotics, a maker of autonomous oceangoing robots, has bulked up its current contract.

Reston, Virginia-based Leidos has tacked on a $2.1 million extension to its existing contract with Nauticus. That brings Leidos’ total financial commitment from $14.5 million to $16.6 million.

In partnership with Leidos, Nauticus is developing next-generation underwater drones for business and military customers. These unmanned underwater vehicles are being designed to carry out tasks that are dangerous or impossible for human divers to do, such as mapping the ocean floor, studying sea creatures, and monitoring water pollution.

“This very important work combines great attributes from each company to deploy a truly novel subsea capability,” says Nicolaus Radford, founder and CEO of Nauticus.

Based on Nauticus’ Aquanaut product, these robots will feature the company’s toolKITT software, which supplies artificial intelligence capabilities to undersea vehicles.

“This work is the centerpiece of Nauticus’ excellent collaboration with Leidos,” says Radford, “and I look forward to continuing our mutual progress of advancing the state of the art in undersea vehicles.”

Founded in 2014 as Houston Mechatronics, Nauticus adopted its current branding in 2021. Last year, Nauticus became a publicly traded company through a merger with a “blank check” company called CleanTech Acquisition Corp.

During the first six months of 2023, Nauticus generated revenue of nearly $4 million, down from a little over $5.2 million in the same period last year. Its operating loss for the first half of 2023 was almost $12.7 million, up from slightly more than $5.2 million during the same time in 2022.

Nauticus attributes some of the revenue drop to delays in authorization of contracts with government agencies.

The company recently lined up a $15 million debt facility to bolster its operations.

“I’ve never been more optimistic about the future of Nauticus. We employ some of the best minds in the industry, and we are positioned with the right product at the right time to disrupt a $30 billion market,” Radford said earlier this month. “Demand from potential customers is high, but constructing our fleet is capital-intensive.”

More good news for Nauticus: It recently signed contracts with energy giants Shell and Petrobras. Financial terms weren’t disclosed.

The Shell contract involves a project in the Gulf of Mexico’s Princess oil and gas field that Nauticus says could lead to millions of dollars in additional contracts over the next few years. Shell operates the offshore field, which is around 40 miles southeast of New Orleans, and owns a nearly 50 percent stake in it.

Co-owners of the Princess project are Houston-based ConocoPhillips, Spring-based ExxonMobil, and London-based BP, whose North American headquarters is in Houston. In July, the Reuters news service reported that ConocoPhillips was eyeing a sale of its stake in the Princess field.

Under the contract with Petrobras, whose U.S. arm is based in Houston, Nauticus will dispatch its Aquanaut robot to support the Brazilian energy company’s offshore activities in South America. Nauticus says this deal “opens up a potential market opportunity” in Brazil exceeding $100 million a year.

Nauticus Robotics has secured a new customer, taking expanding its services to Brazil. Photo courtesy of Nauticus

Houston robotics company secures deal with Brazilian energy giant

sea change

Houston-based Nauticus Robotics, a developer of autonomous ocean robots, has landed a deal to supply its equipment to one of the world’s largest energy companies — a deal that eventually could blossom into $100 million worth of contracts.

Under the deal, Nauticus will dispatch its Aquanaut autonomous subsea robot to support offshore oil exploration activities carried out by Brazil’s Petrobras. Specifically, Aquanaut — propelled by artificial intelligence-enabled software — will supervise infield inspection services over a two-month span.

The deal with Brazil’s Petrobras represents Nauticus’ entry into the South American market and puts Nauticus in a position to score several Petrobras contracts that could collectively be valued at $100 million. Both companies are publicly traded.

Nicolaus Radford, founder and CEO of Nauticus, says Brazil offers a significant market opportunity for his company, as South America’s largest nation boasts one of the world’s most active offshore energy basins.

“A contract with [a] worldwide leading operator for Nauticus speaks to the state-of-the-art technologies of our autonomous robots as we further penetrate the global markets,” Radford says in a news release.

Petrobras is one of the world’s biggest offshore operators, managing 57 platforms, operating 10,000 miles of oil and gas pipelines, and producing the equivalent of 2.6 million barrels of oil per day. The company generated $124.47 billion in revenue last year.

Founded in 2014, Nauticus posted revenue of $11.4 million in 2022. The company went public last year through a $560 million merger with a special purpose acquisition company (SPAC). Nauticus recently opened a new office in The Ion, in addition to their Webster office.

“I see Nauticus being the preeminent ocean robotics company. I want Nauticus to be an empire. It starts small but it grows — and it grows in many different ways, and we’re exploring all of those different ways to grow,” Radford told InnovationMap in May. “We’re leading a technology renaissance in the marine space — and that happens only a few times in an industry.”

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Houston companies scoop up $31 million in funds from DOE, EPA methane emissions program

fresh funds

The U.S. Department of Energy and the U.S. Environmental Protection Agency announced the selection of seven projects from Houston companies to receive funding through the Methane Emissions Reduction Program.

The projects are among 43 others nationwide, including 12 from Texas, that reduce, monitor, measure, and quantify methane emissions from the oil and gas sector. The DOE and EPA awarded $850 million in total through the program.

The Houston companies picked up $31.7 million in federal funding through the program in addition to more than $9.5 million in non-federal dollars.

“I’m excited about the opportunities these will create internally but even more so the creation of jobs and training opportunities for the communities in which we work,” Scott McCurdy, Encino Environmental Services CEO, said in a news release. His company received awards for two projects.

“These projects will allow us to further support and strengthen the U.S. Energy industry’s ability to deliver clean, reliable, and affordable energy globally,” he added.

The Houston-area awards included:

DaphneTech USA LLC

Total funding: $5.8 million (approximately $4.5 million in federal, $1.3 million in non-federal)

The award was granted for the company’s Daphne and Williams Methane Slip Abatement Plasma-Catalyst Scale-Up project. Daphne will study how its SlipPure technology, a novel exhaust gas cleaning system that abates methane and exhaust gas pollution from natural gas-fueled engines, can be economically viable across multiple engine types and operating conditions.

Baker Hughes Energy Transition LLC

Total funding: $7.47 million (approximately $6 million in federal, $1.5 million in non-federal)

The award was granted for the company’s Advancing Low Cost CH4 Emissions Reduction from Flares through Large Scale Deployment of Retrofittable and Adaptive Technology project. The project aims to develop a scalable, integrated methane emissions reduction system for flares based on optical gas imaging and estimation algorithms.

Encino Environmental Services

Total funding: $15.17 million (approximately $11 million in federal, $4.17 million in non-federal)

The award was granted for two projects. The Advanced Methane Reduction System: Integrating Infrared and Visual Imaging to Assess Net Heating Value at the Combustion Zone and Determine Combustion Efficiency to Enhance Flaring Performance project aims to develop and deploy an advanced continuous emissions monitoring system. It’s Advancing Methane Emissions Reduction through Innovative Technology project will develop and deploy a technology using sensors and composite materials to address emissions originating in storage tanks.

Envana Software Solutions

Total funding: $5.26 million (approximately $4.2 million in federal, $1 million in non-federal)

The award was granted for the company’s Leak Detection and Reduction Software to Identify Methane Emissions and Trigger Mitigation at Oil and Gas Production Facilities Based on SCADA Data project. It aims to improve its Recon software for monitoring methane emissions and develop partnerships with local universities and organizations.

Capwell Services Inc.

Total funding: $4.19 million (approximately $3.3 million in federal, $837,000 in non-federal)

The award was granted for its Methane Emissions Abatement Technology for Low-Flow and Intermittent Emission Sources project. It aims to to deploy and field-test a methane abatement unit and improve air quality and health outcomes for communities near production facilities and establish field technician internships for local residents.

Blue Sky Measurements

Total funding: $3.41 million (approximately $2.7 million in federal, $683,000 in non-federal)

The award was granted for its Field Validation of Novel Fixed Position Optical Sensor for Fugitive Methane Emission Detection Quantification and Location with Real-Time Notification for Rapid Mitigation project. It aims to field test an optical sensing technology at six well sites in the Permian Basin.

Southern Methodist University, The University of Texas at Austin, Texas A&M Engineering Experiment Station and Hyliion Inc. were other Texas-based organizations to earn awards. See the full list of projects here.

Texas university's 'WaterHub' will dramatically reduce water usage by 40%

Sustainable Move

A major advancement in sustainability is coming to one Texas university. A new UT WaterHub at the University of Texas at Austin will be the largest facility of its kind in the U.S. and will transform how the university manages its water resources.

It's designed to work with natural processes instead of against them for water savings of an estimated 40 percent. It's slated for completion in late 2027.

The university has had an active water recovery program since the 1980s. Still, water is becoming an increasing concern in Austin. According to Texas Living Waters, a coalition of conservation groups, Texas loses enough water annually to fill Lady Bird Lake roughly 89 times over.

As Austin continues to expand and face water shortages, the region's water supply faces increased pressure. The UT WaterHub plans to address this challenge by recycling water for campus energy operations, helping preserve water resources for both the university and local communities.

The 9,600-square-foot water treatment facility will use an innovative filtration approach. To reduce reliance on expensive machinery and chemicals, the system uses plants to naturally filter water and gravity to pull it in the direction it needs to go. Used water will be gathered from a new collection point near the Darrell K Royal Texas Memorial Stadium and transported to the WaterHub, located in the heart of the engineering district. The facility's design includes a greenhouse viewable to the public, serving as an interactive learning space.

Beyond water conservation, the facility is designed to protect the university against extreme weather events like winter storms. This new initiative will create a reliable backup water supply while decreasing university water usage, and will even reduce wastewater sent to the city by up to 70 percent.

H2O Innovation, UT’s collaborator in this project, specializes in water solutions, helping organizations manage their water efficiently.

"By combining cutting-edge technology with our innovative financing approach, we’re making it easier for organizations to adopt sustainable water practices that benefit both their bottom line and the environment, paving a step forward in water positivity,” said H2O Innovation president and CEO Frédéric Dugré in a press release.

The university expects significant cost savings with this project, since it won't have to spend as much on buying water from the city or paying fees to dispose of used water. Over the next several years, this could add up to millions of dollars.

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A version of this story originally appeared on our sister site, CultureMap Austin.

Report: Texas solar power, battery storage helped stabilize grid in summer 2024, but challenges remain

by the numbers

Research from the Federal Reserve Bank of Dallas shows that solar power and battery storage capacity helped stabilize Texas’ electric grid last summer.

Between June 1 and Aug. 31, solar power met nearly 25 percent of midday electricity demand within the Electric Reliability Council of Texas (ERCOT) power grid. Rising solar and battery output in ERCOT assisted Texans during a summer of triple-digit heat and record load demands, but the report fears that the state’s power load will be “pushed to its limits” soon.

The report examined how the grid performed during more demanding hours. At peak times, between 11 a.m. and 2 p.m. in the summer of 2024, solar output averaged nearly 17,000 megawatts compared with 12,000 megawatts during those hours in the previous year. Between 6 p.m. and 9 p.m., discharge from battery facilities averaged 714 megawatts in 2024 after averaging 238 megawatts for those hours in 2023. Solar and battery output have continued to grow since then, according to the report.

“Batteries made a meaningful contribution to what those shoulder periods look like and how much scarcity we get into during these peak events,” ERCOT CEO Pablo Vegas said at a board of directors conference call.

Increases in capacity from solar and battery-storage power in 2024 also eclipsed those of 2023. In 2023 ECOT added 4,570 megawatts of solar, compared to adding nearly 9,700 megawatts in 2024. Growth in battery storage capacity also increased from about 1,500 megawatts added in 2023 to more than 4,000 megawatts added in 2024. Natural gas capacity also saw increases while wind capacity dropped by about 50 percent.

Texas’ installation of utility-scale solar surpassed California’s in the spring of last year, and jumped from 1,900 megawatts in 2019 to over 20,000 megawatts in 2024 with solar meeting about 50 percent of Texas' peak power demand during some days.

While the numbers are encouraging, the report states that there could be future challenges, as more generating capacity will be required due to data center construction and broader electrification trends. The development of generating more capacity will rely on multiple factors like price signals and market conditions that invite more baseload and dispatchable generating capacity, which includes longer-duration batteries, and investment in power purchase agreements and other power arrangements by large-scale consumers, according to the report.

Additionally, peak demand during winter freezes presents challenges not seen in the summer. For example, in colder months, peak electricity demand often occurs in the early morning before solar energy is available, and it predicts that current battery storage may be insufficient to meet the demand. The analysis indicated a 50% chance of rolling outages during a cold snap similar to December 2022 and an 80% chance if conditions mirror the February 2021 deep freeze at the grid’s current state.

The report also claimed that ERCOT’s energy-only market design and new incentive structures, such as the Texas Energy Fund, do not appear to be enough to meet the predicted future magnitude and speed of load growth.

Read the full report here.

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