Superheated molten lava about to explode under the sea (NOAA)

The joint industry project (JIP) will develop subsea equipment and systems able to meet the technical challenges of producing oil and gas from deepwater reservoirs with pressures up to 20,000 psi and temperatures of 350°F .
The JIP aims to improve deepwater development by standardizing materials, processes, and interfaces to enhance reliability and operability.

“This agreement is a clear illustration of how leading companies with a common interest can come together to overcome the technological and economic challenges facing our deepwater industry,” said FMC Technologies’ chairman, president and chief executive officer, John Gremp.

He said the collaboration would help the group “safely develop some of the world’s most promising fields and take a large step toward providing new oil and natural gas resources to consumers and superior returns to stakeholders”.

The JIP comes as the industry in general grapples with producing hydrocarbons in remoter and tougher offshore environments.

On 23 July the UK government published a consultation on a new tax allowance to encourage investment in ultra high pressure, high temperature (uHPHT) oil and gas fields.

The government believes there may be up to 21 billion barrels of oil equivalent on the UK Continental Shelf, but recognizes that exploration and production is becoming harder and more expensive.

The proposed allowance would reduce the tax on a portion of a company’s profits from 62% to 30% at current rates.

UK industry body Oil & Gas UK welcomed the proposal but urged the government to listen to industry and to keep any new allowance simple.

“Experience shows, uHPHT fields are technically demanding and commercially difficult to develop,” said group’s economics director, Michael Tholen, adding: “the current tax regime is seen by all to be a barrier to investment.”

“The government will need to work closely with industry to develop a simple allowance which promotes investment in uHPHT, encourages exploration of the surrounding area to fully utilise the potential of any resulting new infrastructure,” he said. “A complex solution could lead to the wrong outcome.”