Wednesday 30 April 2014

Noble Corporation Paragon spin-off

Noble Corporation updated its plan to spin-off Paragon Offshore.

Noble expects to effect the spin-off as a dividend of 100 percent of the shares of Paragon Offshore to Noble's shareholders during the third quarter of this year.

Paragon Offshore will own and operate most of Noble's current standard specification drilling business, including five drillships, three semisubmersibles, 34 jackups, and one FPSO.  The new company will also be responsible for the Hibernia platform operations.  Noble will continue to own and operate its high-specification assets with particular operating focus in deepwater and ultra-deepwater market segments for drillships and semisubmersibles and harsh environment and high-specification segments for jackups.

"The spin-off of Paragon Offshore to our shareholders will be an important milestone in Noble's transformation and will allow each company to have a more focused business and operational strategy.  The spin allows us to bring certainty to our shareholders and to both of the Noble and Paragon business organizations," said David W. Williams, Chairman, President and Chief Executive Officer of Noble.

"I am excited for the future of both Noble and Paragon Offshore. Noble can move forward as an industry-leading high specification and deepwater drilling company, and Paragon Offshore can better leverage its fleet and substantial backlog to focus on the drivers of its particular business segment. In light of financial market conditions, both generally and with respect to the equity markets for offshore drilling companies, we decided to eliminate the initial public offering and accelerate the completion of the separation transaction.

"Each company will have capable assets and great talent that will allow the two fleets to be optimally marketed and operated for the benefit of all shareholders."

The spin-off, which is expected to be tax-free to shareholders, will be subject to approval by Noble's shareholders at the upcoming annual general meeting.  Noble will also file a registration statement on Form 10, and the distribution will be subject to such registration statement being declared effective, as well as final board approval of the actual dividend and other customary matters.
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McDermott wins contract Offshore East Java, Indonesia

McDermott reported that the Derrick Barge 101 was recently mobilized to Indonesia to perform fast-track heavy-lift work for a client offshore Indonesia.

“Response time to fast-track work is just one of the key elements to a successful project outcome,” said Hugh Cuthbertson, Vice President and General Manager, Asia Pacific.

“Our Project Management and Offshore Resources teams expedited the planning process, while ensuring compliance to safety throughout, to achieve mobilization within just a few days. In addition, this opportunity is an example of our efforts to improve asset utilization beyond the requirements of our existing backlog.”

This contract is included in McDermott’s first quarter 2014 backlog.
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Monday 28 April 2014

Chris Finlayson resigns as BG Group Chief Executive

BG Group has accepted Chris Finlayson's resignation as Chief Executive and as an Executive Director of the Board with immediate effect, for personal reasons.

Until a permanent replacement is appointed, Andrew Gould, BG Group’s Non-Executive Chairman, will take over as interim Executive Chairman. A recruitment process to find an external successor to Chris is now underway. Andrew will revert to the role of Non-Executive Chairman once the new Chief Executive is appointed.

"I would like to thank Chris for his contribution to the Group over the past four years and we wish him well for the future," said Andrew Gould.

"The Board of Directors is fully committed to the Group’s strategy, which is built upon a portfolio of high-quality assets. The Company must accelerate the creation and delivery of the longer-term value for our shareholders, while delivering the Group’s business plans. The Board felt that it was in the best interests of the Group to accept Chris' resignation and seek fresh leadership to deliver both of these priorities."

Chris will not receive any payment beyond his contractual entitlement, details of which will be available on the Group's website.
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AGR secures frame agreement with Det norske

AGR has been awarded a frame agreement with Det norske to provide well services and consultancy resources to the operator’s projects on the Norwegian Continental Shelf (NCS).

The frame agreement commences 1 May 2014 with duration of three years. The possible additional two plus two years’ extension will see the frame agreement end in 2021.

Under the agreement, AGR is to provide well services and consultancy manpower to support Det norske’s upcoming exploration and production activity.

Sjur Talstad, AGR’s Executive Vice President, Norway and Russia (pictured), said: “We are very pleased to continue our good working relationship with Det norske on the Norwegian Continental Shelf (NCS).“

“AGR has established a long track record of delivering wells efficiently and with high focus on HSEQ. With this contract award AGR will continue our support to Det norske on drilling projects in addition to our existing collaboration within reservoir management.”

AGR has proved its capability to work with Det norske on earlier well management projects. The efficient collaboration between Det norske, AGR and the service suppliers during the first AGR-managed Bredford Dolphin drilling campaign (2007-2011) resulted in Det norske being the best performing exploration operator on the NCS during that period.
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Industry first for McDermott

A McDermott International subsidiary has become the first to install rigid reel-lay pipe-in-pipe in Asia-Pacific for the Siakap North-Petai (SNP) development project offshore Malaysia.

At more than 3,900 feet (1,190 meters), the SNP development is one of the industry’s most challenging deepwater projects.

“Successfully installing the rigid reeled pipe-in-pipe flowlines on the Siakap project is a significant achievement for McDermott and a first for the region,” said David Dickson, President and Chief Executive Officer, McDermott.

“It’s testament to the expertise of our people, the performance of our vessels and our capability to deliver complex deepwater projects. The performance of our project team and vessels in the final months of installation was critical in helping our client achieve first oil at the end of February.”

McDermott was awarded the full turnkey contract in December 2011 for the project’s subsea infrastructure. This includes the design, procurement, fabrication and installation of two complex rigid insulated pipe-in-pipe production flowlines, one rigid water injection and one main umbilical system connecting eight new manifolds and subsea distribution units to existing riser slots. As part of the pipe-in-pipe and water injection flowline system, McDermott combined its design capability from both its Houston and Singapore Subsea engineering offices, completed all spooling activities at its in-house regional spool base and fabricated the Pipeline End Termination (PLET) and In Line Tee (ILT) structures.

Installation of the pipe-in-pipe production flowlines and rigid water injection flowlines was undertaken by McDermott’s Lay Vessel North Ocean 105, while flexible risers were installed by McDermott’s North Ocean 102.
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Friday 25 April 2014

Offshore helicopter services set to take off

Douglas-Westwood’s new World Offshore Oil & Gas Helicopter Market Report forecasts that $24 billion will be spent on offshore helicopter services between 2014 and 2018 – an increase of 57% over the preceding five-year period.

“Long-term production support contracts in Western Europe and continues to underpin the market, but we expect faster growth rates to be experienced in Africa, Asia, Australasia and Latin America over the forecast period. A preference for local providers in many of these markets means that regional specialists dominate and the major helicopter operators have lower levels of participation, with the notable exceptions of Brazil and Australia," said report editor, Frank Wright.

“On a global basis the medium-type helicopter class accounts for close to 60% of total offshore helicopter service expenditure. Western Europe and Australasia are exceptions, as buyers in these markets favour larger helicopters with increased range and carrying capacity.

“The next five years will be a critical time for the industry as a new generation of medium-class helicopters are introduced. These models are highly efficient with the most advanced safety systems and are expected to perform well in the offshore arena. However, due to the natural conservatism in the industry, it will take time before a critical mass of orders is achieved.”
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Tullow Oil Mauritania well update

Tullow Oil reported that the Tapendar-1 exploration well in the C-10 licence, offshore Mauritania, has not encountered hydrocarbons and the well is being plugged and abandoned.

"The Tapendar-1 frontier exploration well was a bold attempt to open a new oil play in this area of Tullow’s highly prospective offshore Mauritania acreage which the Group has built up in pursuit of the next Jubilee-type discovery," said
Angus McCoss, Exploration Director, Tullow Oil.

"At this well location, two targets of Miocene and Upper Cretaceous age failed to encounter hydrocarbons. Following these opening wells, we and our partners will now pause to analyse the data gathered from the exploration campaign thus far. We will then decide on the location and timings of the next wells which will continue to focus on exploring for conventional oil plays."

Tapendar-1 is the second exploration well in Tullow’s Mauritania exploration campaign, following the Frégate-1 well in February 2014. The objective of Tapendar-1 was to test two targets of Miocene and Upper Cretaceous age. At the Miocene interval a major undrilled turbidite fairway was penetrated and encountered excellent quality, well developed, reservoir sands. However, these sands were water bearing at this location. The deeper Upper Cretaceous target tested a salt flank play, which at this location, did not encounter any sands. The well reached total depth of 3,752 metres and is currently being plugged and abandoned after which the Stena DrillMax drill ship will leave Mauritania.

Tullow has a significant exploration position offshore Mauritania. A variety of exploration prospects and plays, independent of the Tapendar and Frégate results, remain highly prospective. Data from the Frégate-1 and Tapendar-1 wells will now be analysed and integrated into the seismic data previously acquired across Tullow’s Mauritania acreage before the next well locations and timings are confirmed. Seismic acquisition in Blocks C-3 and C-18 will also continue this year.

Tullow operates the C-10 licence with 59.10% equity and is partnered by Premier Oil plc (6.23%), Kufpec (11.12%), Petronas (13.5%) and SMHPM (10%).
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Wednesday 23 April 2014

Hess sells Thailand assets

Hess Corporation has sold its interests in both the Sinphuhorm and Pailin Fields located in Thailand to PTT Exploration and Production Public Company Limited for a total after-tax consideration of approximately $1.0 billion, effective 1 July 2013.

Together, the two assets produced an average of 17,000 barrels of oil equivalent per day net to Hess in 2013.

Hess will use the proceeds from this sale to continue repurchasing shares under its existing $4 billion authorization.
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Expro expand operations in Azerbaijan

Leading international oilfield services company, Expro, has secured a milestone subsea contract with BP for the Shah Deniz Stage 2 project in the South Caspian Sea, one of Expro’s largest Europe CIS contracts to date.

The 5-year contract, worth almost $100m, will see Expro provide completion landing string equipment and services for the installation and completion of Shah Deniz Stage 2 subsea wells, covering 24 new subsea completions.

As a result of the contract, Expro is set to invest in its subsea onshore support base and infrastructure in order to support BP locally in Baku, Azerbaijan.

Expro will supply its Landing String Assembly – High Pressure (ESLA-HP) 15k valves in conjunction with its EXPRESS electro hydraulic control systems thus ensuring a fast Emergency Shut Down during the clean-up of high pressure/high rate gas wells.

The ELSA-HP has been developed to service the high pressure horizontal tree completion and intervention market. With systems designed and qualified up to 15,000 psi, 250 degF and 10,000ft water depth, this landing string assembly provides clients with the safety and reliability to develop fields with challenging conditions.
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Atkins builds on Maersk Oil relationship

Atkins has been awarded an engineering support contract covering three of Maersk Oil’s UK assets in the North Sea.

“This is a truly multi-faceted contract involving many challenges as we seek to assist Maersk Oil with the enhancement of their existing North Sea assets," said Mark Wood project manager and senior process engineer.

“The agreement builds on a strong record of process engineering support to Maersk Oil over many years so is further testament to our great working relationship. We look forward to delivering successful and incident-free campaigns for each of their assets.”

The Gryphon FPSO, Global Producer III FPSO and Janice FPU are planned for major offshore inspection, repair and maintenance (IRM) works this year, in addition to field expansion works. Maersk has committed to this plan by contracting a dedicated Dive Support Vessel (DSV) for 365 days.

In order to ensure this is completed safely and on time, a team of eight process engineers from Atkins will support Maersk Oil in developing the scope, maintenance plans, commissioning procedures and providing a technical interface between the dive vessel and Maersk Oil’s assets. The Atkins team will be managing the scopes through to completion with the provision of offshore engineers and a project management role.
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Thursday 17 April 2014

Total discovers oil in deep offshore Ivory Coast

The Total-operated Saphir-1XB exploration well on Block CI-514 proved the presence of liquid hydrocarbons in the deep offshore west of Ivory Coast. 

“Drilled in an abrupt margin play, this first well is the first discovery in the San Pedro Basin, a frontier exploration area in Ivory Coast,” said Marc Blaizot, Senior Vice President, Exploration at Total. "Having confirmed the presence of a petroleum system containing light oil, we will next evaluate this very promising find and focus on its extension to the north and east."

Lying in 2,300 meters of water, Saphir-1XB is the first well in Block CI-514. It was drilled to a total depth of 4,655 meters, encountering around 40 meters of net pay containing light 34° API oil, in a series of 350 meters of reservoirs. 

Data acquired during drilling is being analyzed and will be used to determine the area’s potential and design the delineation program.

Total is pursuing its intensive exploration program in the area, with plans to drill two wells in Blocks CI-515 and CI-516 by year end

Total E&P Côte d’Ivoire operates Block CI-514 with a 54% interest, alongside CNR International (36%) and PETROCI Holding (10%). 

Total also has interests in three other ultra-deep offshore exploration licenses in Ivory Coast (CI-100, CI-515 and CI-516). 

The Group is continuing to analyze the oil discovery made in Total-operated Block CI-100 in 2013, which confirmed the extension of an already proved active petroleum system in the prolific Tano Basin.
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McDermott signs agreement for North Sea spoolbase

McDermott International reported that one of its subsidiaries has signed an option agreement with PD Ports which gives it the exclusive right to operate a spoolbase to serve projects in the North Sea. McDermott expects to have the facility available for projects in early 2015.

“This agreement for the spoolbase is an important milestone towards supporting McDermott’s re-entry into the North Sea market,” said Tony Duncan, Executive Vice President, Subsea.

“We look to combine the prime location of the Hartlepool spoolbase for quick access to project sites with McDermott’s high standards, and high-performance Reel-Lay capabilities provided by our Lay Vessel North Ocean 105. We are firmly committed to meeting our clients’ needs in the region.”

Located in Hartlepool, in northeast United Kingdom, the spoolbase is expected to support McDermott’s re-entry into the North Sea Reel-Lay market.

The Port of Hartlepool is a well-established working port with a history of fabrication for the oil and gas industry and has excellent access from harbor to the open sea.

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Shell deep-water gas discovery Malaysia

Shell reported an exploration discovery offshore Malaysia.

The successful ‘Rosmari-1’ well is located 135 kilometres offshore in Block SK318, and was drilled to a total depth of 2,123 metres.

“Rosmari-1 is a testament to our ability to successfully drill and build understanding of new geology within our existing exploration heartlands, adding value to our existing assets in Malaysia,” said Andy Brown, Director Shell Upstream International.

“We are expanding and rejuvenating heartlands across our exploration portfolio, including in Brunei, Australia and the Gulf of Mexico.”

The well encountered more than 450 metres of gas column. With further exploration planned, the finding is a positive indicator of the gas potential in an area of strategic interest for Shell.

“This adds to Shell’s sequence of recent exploration successes in Malaysia, with these discoveries expanding the company’s heartlands positions,” said Iain Lo, Chairman Shell Malaysia.

Block SK318 is Shell operated with an 85% interest, with the remaining 15% held by PETRONAS Carigali Sdn Bhd.
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Tuesday 15 April 2014

TransAlta preferred bidder in Western Australia development

TransAlta Corporation has been named the preferred bidder for the South Hedland Power Project.

"Our bid on this development project illustrates the importance and focus that TransAlta places on customers and business in Western Australia. We want to be the company of choice in providing reliable and low cost power to customers in the remote mining regions of the State and are pleased to be adding another asset at an important location like Port Hedland," said Dawn Farrell, President and Chief Executive Officer of TransAlta.

Subject to the finalization of necessary contracts and approvals that will take place during the next several weeks, the project would see TransAlta build, own and operate a 150MW power station in South Hedland, Western Australia.

The investment is estimated at approximately AUD $550M. The comibined cycle gas power station is expected to to be delivering power in 2016 with full commissioning of the station in 2017. The development will be fully contracted under 25 year agreements with Horizon Power and Fortescue Metals Group and may be expanded to accommodate additional customers at later dates. The station will supply Horizon Power's customers in the Pilbara region as well as Fortescue's port operations. The project will be built and funded over the next 30 months.

Western Australia is an important market for TransAlta, where it has been operating for more than 15 years. With six facilities totaling 425 MW of generating capacity and a natural gas pipeline under development, TransAlta has proven experience for providing reliable power to remote operations in the region.
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Monday 14 April 2014

FMC Technologies wins $322 Million contract

FMC Technologies has received an order from BP to supply subsea systems for its Shah Deniz Stage 2 project in the Caspian Sea.

"This award culminates three years of pre-engineering work between FMC Technologies and BP on this project," said Tore Halvorsen, FMC Technologies' Senior Vice President, Subsea Technologies.

"This close cooperation will accelerate the transition to the manufacturing stage and enable reduced lead time delivering the project."

The order has an estimated value of $322 million in revenue.

FMC Technologies' scope of supply includes subsea manifolds, associated controls and connection equipment as well as key controls and connection components for subsea production trees. The Shah Deniz field is located in the Azerbaijan sector of the Caspian Sea, 43 miles (70 kilometers) southeast of Baku.
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Largest wind project in Canada now running

Samsung Renewable Energy, Inc. (Samsung) and Pattern Energy Group reported the South Kent Wind project is fully operational. The 270 megawatt (MW) South Kent Wind project is the largest wind power facility in Canada with the capacity to produce clean renewable energy for approximately 100,000 Ontario homes each year.

“South Kent Wind is our first in a series of wind projects in Ontario and we’re proud it has been delivered on time and within budget, despite a very harsh winter,” said Mike Garland, CEO of Pattern Energy.

“This project was truly a collaborative effort – a total of 15 banks providing financing for an effort that involved 500 workers constructing 70 kilometers of roads, 124 wind turbines and 283 kilometers of electrical cable. Along with our partner, Samsung, we’d like to thank the very dedicated construction crew and the fantastic community of Chatham-Kent. We’re proud this project will now be providing real benefits to the local economy, including more than $7 million in direct spending each year.”

“Samsung and our partners are proud to complete this first project under our Green Energy Investment Agreement with the government of Ontario,” said Ki –Jung Kim, Senior Vice President, Samsung C&T.

“This project is now producing hundreds of megawatts of clean energy, and has created thousands of high-skilled jobs and millions of dollars in community investment, all of which are benefiting real people in Chatham Kent and across the province.”

South Kent Wind created approximately 500 jobs during construction and 22 full-time permanent positions for ongoing operations and maintenance. A total of 99% of the workforce was comprised of workers from Ontario, which were involved in every aspect of the South Kent Wind project – from manufacture and assembly of the wind turbine components to site construction, installation work and project operations. RES Canada managed construction of the project. Altogether, Samsung and Pattern Energy’s wind power projects in Ontario are creating thousands of manufacturing and construction jobs, contributing significant property taxes in host communities and providing millions of dollars for schools and important community projects.

South Kent Wind is utilizing 124 Siemens 2.3 MW wind turbines with blades and towers that were made in Ontario. Siemens’ turbine blade facility in Tillsonburg manufactured the blades and CS Wind’s facility in Windsor manufactured the turbine towers, using Ontario-made steel.

The South Kent Wind project features some of the most advanced wind technology, including TowerTEX’s TowerSHADE, which is used to mitigate the impact of night lights required by aviation regulations. The tower shades completely eliminate light visibility from below the turbine out to 1.5 km, while allowing the light to be seen from above by aircraft.

South Kent Wind helps Ontario achieve its clean energy goals and allows the Province to continue moving away from its dependence on coal energy production. Compared to coal-fired generation, South Kent Wind will offset approximately 842,000 tonnes of CO2 each year, the equivalent of taking nearly 148,500 cars off the roads, and conserve enough water to meet the needs of approximately 23,600 Ontarians. The South Kent Wind project has a 20-year power purchase agreement with the Ontario Power Authority (OPA).

Samsung and Pattern Energy are also in construction of the 150 MW Grand Renewable Energy Park in Haldimand County, Ontario. Samsung and Pattern Development are making significant progress on two other wind energy projects in Ontario, including the 180 MW Armow Wind project in the Municipality of Kincardine and the 270 MW K2 Wind project in the Township of Ashfield-Colborne-Wawanosh, which began construction in March and is being developed with our partner Capital Power. Altogether, these four projects will create 870 MW of renewable energy for the OPA, enough to power approximately 300,000 homes in Ontario each year.
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Repsol creating jobs

Repsol in 2013 hired a total of 1,062 people, of whom 49% are women. These figures reflect the company's commitment to creating quality employment, attracting, motivating and retaining the best professionals, and providing an attractive workplace. The company is one of the main job creators of the Spanish StockExchange (Ibex), with an average of nearly 1,500 new jobs per year over the last three years.

The current workforce at Repsol exceeds 24,000 employees of more than 80 nationalities of which 91% have permanent contracts.

The company is especially focused on the incorporation of young people into the labour market and furthering student training. Repsol has several Masters’ Programmes in the different areas of its activities (Hydrocarbons Exploration and Production, Refining, Petrochemicals and Gas, and Repsol Energy Management) all taught in its Further Education Centre. Students in these programmes receive an internship contract which can become a permanent contract depending on academic performance. During 2013, a total of 97 students joined this programme.

On the other hand, during 2013 Repsol trained 800 students at its different internships and scholarship programmes, moving them forward in their training and helping them to acquire additional skills and knowledge.

Repsol is widely recognised as one of the best companies to work for in Spain, and is among the top companies amongst those which promote work-life balance, according to a ranking included in the analysis of work-life balance of Spain performed by the International Institute of Political Science. The award recognises the different tools Repsol offers its employees: remuneration, training, internal mobility and international careers, as well as development and performance reviews.
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Friday 11 April 2014

Gas and oil discovery in the Valemon area

Statoil together with the Valemon Unit partners made a gas and oil discovery in the Valemon Nord prospect in the North Sea.

The discovery wells 34/10-54 S and 34/10-54 A, drilled by the drilling rig Transocean Leader, are located approximately 10 kilometres north of the planned Valemon installation.

The main wellbore 34/10-54 S proved a gross 164-metre gas/condensate and oil column in the Middle Jurassic Brent Group. The side-track 34/10-54 A proved a gross 100-metre gas/condensate column in the Brent Group and in sand of unspecified Jurassic age, and an additional gross 140-metre gas/condensate column in the Statfjord Group. Gas/condensate was also found in the middle Jurassic Cook Formation.

Statoil estimates the total volumes in Valemon North to be in the range of 20-75 million barrels of recoverable oil equivalent (o.e.).
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Thursday 10 April 2014

Chevron, YPF continue Vaca Muerta Shale development

Chevron Corporation confirmed subsidiaries of the company have signed agreements with the Argentine oil company YPF S.A. to continue development of shale oil and gas resources from the Vaca Muerta formation located in the Neuquén province in Argentina.

"This is a significant step in our subsidiaries' joint efforts with YPF to develop one of the most exciting shale plays in the world today," said George Kirkland, vice chairman of Chevron Corporation.

"Vaca Muerta could become an important contributor to Chevron's long term production growth."

The agreements build off the progress made with the drilling program begun in 2013 and call for continued investment toward large-scale drilling and production in the 96,000-acre (388-sq. km) Loma Campana concession.

The agreements also call for exploration of shale oil and gas resources in the 49,400-acre (200-sq. km) Narambuena area located about 70 miles (100 kilometers) north of Loma Campana in the Chihuido de la Sierra Negra concession, one of the main producing areas in the Neuquén Basin of west-central Argentina.

"YPF is a reliable partner and operator that is advancing the project in the right direction," said Ali Moshiri, president of Chevron Africa and Latin America Exploration and Production Company.

"We are pleased with the progress achieved so far and look forward to continuing to provide our technical expertise and investment to help Argentina achieve its goal of energy self-sufficiency."
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Wednesday 9 April 2014

McDermott installs P-61 Tension Leg Wellhead Platform

McDermott International reported the successful installation of the P-61 Tension Leg Wellhead Platform (TLWP) for the PPT BV Joint Venture, consisting of Petrobras and Chevron.

Once fully commissioned and operational, the project will enter the record books as the first use of dry-tree floating technology offshore Brazil and the first Tension Leg Platform installation offshore South America.

Awarded in 2010 to FloaTEC Singapore Pte, Ltd. ("FloaTEC Singapore"), a joint venture between subsidiaries of Keppel FELS Ltd. ("Keppel FELS") and McDermott, the successful installation of the Papa Terra P-61 is a testament to the excellent working relationship amongst three leading offshore specialists.

“The patented Extended Tension Leg Platform technology from FloaTEC, construction capabilities of Keppel FELS, and offshore transportation and installation experience of McDermott combined to form a first-of-a-kind solution for this challenging deepwater environment,” said David Dickson, President and Chief Executive Officer at McDermott.

“The alignment of all three teams with our customers’ requirements ensured successful and safe delivery of one of the most challenging Tension Leg Platforms ever installed.”

Topsides engineering was executed by McDermott in Houston and constructed in Singapore by Keppel FELS, and fabrication of the piles and tendons was provided by McDermott’s fabrication facilities. The hull was designed by FloaTEC in Houston and fabricated in Brazil by Keppel FELS at its BrasFELS yard. The topsides and hull were then integrated at BrasFELS using the float over method.

The McDermott team was instrumental in providing float-over support and executing the offshore transportation and final installation of the TLWP offshore Brazil. The project was carried out with significant technical contribution by Chevron to the TLWP design, construction and installation. Commissioning of the platform continues, under the expertise of the FloaTEC project team.

Using the Derrick Barge 50 (“DB50”), a specialized deepwater construction vessel, to install the tendons, McDermott successfully completed its offshore campaign without a single Lost Time Incident. Recent enhancements to the DB50 include a new state-of-the-art switchgear and power management system with an upgraded level of auxiliaries resulting in improved reliability and station keeping – a critical feature during offshore installations.
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Seadrill reduces stake in SapuraKencana

Seadrill Limited has sold 230 million shares of SapuraKencana raising approximately US$300 million in proceeds.

"We are very pleased with the progress to date of our partnership with SapuraKencana, both in the integration of the tender rig business and in the development of our successful PLSV joint venture in Brazil," said John Fredriksen, Chairman, President and Director of Seadrill.

"We are today working together on several new businesses with the target of creating new growth opportunities supported by long term contracts.  Our support for one of our closest partners is unwavering and we look forward to many years of future cooperation."

The total economic gain realized from this sale is approximately US$165 million.  Following the completion of this transaction Seadrill will continue to own approximately 490 million shares, representing an approximate 8% ownership stake in SapuraKencana.

Tor Olav Trøim will continue to serve as a board member of SapuraKencana with John Fredriksen as an alternate director.

On April 30, 2013 Seadrill increased its ownership stake in SapuraKencana to 12% as a result of the integration of its tender rig business into SapuraKencana. The target was to develop a strong leading player in the Far East integrated service market.  Since completion of this transaction, SapuraKencana has made significant progress integrating the two businesses and taking delivery of an additional 3 tender rigs under construction at the time of the transaction. This progress has partly been reflected in the positive share price development.

Seadrill remains a long-term strategic investor in SapuraKencana and, in connection with the sale, has entered into a lock up agreement for its remaining shares until the end of 2014.  Seadrill will continue to support SapuraKencana's strategy of growing its broad offshore service portfolio.  SapuraKencana has strengthened its position in the Asian market and has significant international growth opportunities.  SapuraKencana's position as an integrated service provider and upstream leaseholder creates a competitive advantage in the region.  Having acquired Seadrill's tender rig assets, SapuraKencana is in an ideal position to serve field developments on a global basis as well.
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Tuesday 8 April 2014

AGR wins Frame Agreement with Premier Oil

AGR has been selected by Premier Oil to deliver a range of services within the Norwegian Continental Shelf (NCS).

The contract period is for five years plus additional three years. The scope of the agreement covers Well Management and Well Planning Services for exploration drilling and field developments. The Work Scope will encompass delivery of resources, competence and methodology by AGR’s Well Management team in Norway.

“We are pleased to continue the close working relationship with Premier Oil on the Norwegian Continental Shelf (NCS),” Sjur Talstad, AGR’s Executive Vice President, Norway and Russia said.

“The activity will be carried out from our fast growing Stavanger office which has an excellent track record of delivering Well Management and operational HSE support.

“This contract win follows a busy 2013 for us when at peak we delivered five operations in parallel managing jack-up, semi-submersible and drill-ship rigs during the year.”    

AGR recently celebrated drilling over 500 well projects in 25 countries for 106 clients - an average of one drilling project commenced every 10 days since 2000. On the NCS, the company has managed over 80 drilling projects on 14 rigs on behalf of 21 operators. Last year, AGR’s Norway team was involved in 15% of exploration wells drilled on the NCS.

AGR’s experience spans drilling in a variety of challenging environments, including HPHT, deepwater and ultra deepwater, the Barents Sea and drilling in environmentally sensitive areas.
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Atkins wins design contract for major UK offshore wind farm

Atkins has been awarded an additional contract by DONG Energy. Atkins is now contracted to design five offshore substations for DONG Energy.

"With over 30 years looking after oil and gas offshore structures, we can directly apply lessons learned in terms of construction and operation in deeper waters, foundation and jacket technology, the use of heavy-lift vessels and asset maintenance offshore," Dave Parkin, managing director of Atkins’ Power and Renewables business said.

"Our UK based team will be working together with DONG Energy to apply the lessons on these large, complex projects enabling us to set new benchmarks in stripping out any fat for an industry that needs to become more and more competitive with other energy sources.”

The contract will see Atkins provide detailed substation designs for Race Bank, one of DONG Energy’s major offshore wind development projects in the UK.

Atkins is also designing the substations for DONG Energy’s Walney and Burbo extension projects.

"DONG Energy has a tough target to cut the cost of offshore wind by 35 – 40 per cent by 2020," Benj Sykes, UK country manager for DONG Energy Wind Power said.

"We are doing this through standardising the building of a wind farm.  Atkins is working with us to provide a design for five substations that can be applied to three of our projects.  This will enable a production line approach to fabrication, rather than a bespoke solution each time and will reduce costs without compromising safety and reliability. It becomes more like buying off the shelf than ordering a unique product and that brings cost savings."

The project, located in the Greater Wash area off the east coast of England, has a capacity of up to 580 megawatt with offshore construction due to commence from 2017.

“I want to see more UK firms throughout the supply chain profiting from the growth in sustainable power," Minister for Business and Energy Michael Fallon said.

"This contract is a promising step towards the creation of more highly skilled jobs as we establish a dependable and affordable energy mix."
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Dragon Oil drilling update

Dragon Oil published an update on the drilling activity in the Cheleken Contract Area and its exploration assets in the first quarter of 2014.

In the Cheleken Contract Area, the Dzheitune (Lam) B/155A sidetrack was completed by the jack-up rig Elima as a single producer to a depth of 2,447 metres and tested in February 2014 at an initial production rate of 1,027 barrels of oil per day. Currently, the well is producing 1,175 barrels of oil per day. The jack-up rig has been mobilised to the Dzheitune (Lam) 4 platform and is drilling the Dzheitune (Lam) 4/187B well to appraise a location for a future platform: the current depth is 2,550 metres with a high angle inclination.

In March 2014, the Neptune rig spudded the Dzhygalybeg (Zhdanov) 21/101 development well. Land Rig 1 is currently drilling the Dzheitune (Lam) 22/188 well. Work is ongoing on the Dzhygalybeg (Zhdanov) A platform to accept Land Rig 2, which is expected to spud the Dzhygalybeg (Zhdanov) A/102 well in 2Q 2014.

There are three drilling rigs currently operating in the Cheleken Contract Area. We anticipate Land Rig 2, currently being mobilised offshore, to commence drilling later this quarter and the arrival of the Caspian Driller in 2H 2014.

The average field production in the Cheleken Contract Area for 1Q 2014 was 72,300 bopd (1Q 2013: 71,800 bopd). The average production for March 2014 was 73,400 (March 2013: 74,000 bopd) with the quarter's exit rate just above 73,000 bopd. The final production figures for the quarter will be published in the Interim Management Statement due to be released on 22 April 2014.

Due to the delayed start or anticipated later start of drilling by the rigs on site or arriving to the Cheleken Contract Area later this year, we now anticipate that the production growth in 2014 will be around 10% on the basis of 14-16 wells being completed during the year. The drilling programme is now expected to be weighed more towards the second half of the year.

In Iraq, the consortium of Dragon Oil (30%) and Kuwait Energy Corporation (70% and operator) spudded an exploration well using a drilling rig from the Iraqi Drilling Company on the 25th March 2014. The well is targeting two prospective reservoirs; testing is expected to take place in 2H 2014.
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Monday 7 April 2014

AGR provides risk management software to Sakhalin Energy

Global oil and gas service provider AGR reported that its software solutions division had signed its first contract with Sakhalin Energy.

The three-year deal includes the latest version of its P1 software, as well as maintenance and support services.

This software allows operators to maximise performance during well-construction projects.
AGR relaunched P1 Version 4.0 this spring.

The latest version draws on data from previous well-construction projects to offer operators a range of solutions to problems that may arise during construction work. It also provides information on the net effect of changes, allowing users to understand the financial implications.

"We are delighted to have landed this significant contract with Sakhalin Energy," Petter Mathisen, vice president of AGR’s software solutions division said.

"This contract adds to AGR’s position in Russia where currently Rosneft is using P1, and we are hoping this latest win will lead to more projects in the country."

AGR is a leading independent services and technology company and operates in all regional main oil hubs worldwide.

Sakhalin Energy is the operator of the Sakhalin-2 project. The company was formed in 1994 to develop the Piltun-Astokhskoye oil field and the Lunskoye gas field in the Sea of Okhotsk offshore Sakhalin Island in the Russian Far East. Its shareholders are Gazprom (50% + 1 share), Shell (27.5% - 1 share), Mitsui (12.5%) and Mitsubishi (10%).
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Protea delivers intervention winch system

An advanced intervention winch system developed by Protea for Helix Well Ops UK Limited (Well Ops) has successfully completed initial operations off West Africa.

The system comprising five winches, active heave compensators and power and control equipment was installed as an upgrade package to the existing well intervention tower on the Skandi Constructor.
“The winches are to allow the successful deployment and operation of guide wires and pod lines for well intervention in up to 1500m of water,” said Tomasz Paskiewicz, CEO of Protea. “To successfully deploy, attach and maintain these connections to subsea well heads, precise position control, accurate heave compensation and reliable constant tension systems are key.”
Working closely with engineers from Well Ops, Protea’s contract was for the development, supply and installation of a turnkey system including winches, heave compensators, hydraulic power unit, Nitrogen generator and control system to meet the specific operational requirements of the customer.
In just seven months, over 50 tonnes of specialist equipment was designed, built and tested at Protea’s modern production facility in Southern Poland. The project was the first to benefit from Protea’s new 2,100m2 assembly hall with 25m roof height and 120t SWL overhead craneage.
“The new hall allowed us to fully assemble the equipment undercover and complete extensive functional testing prior to delivery, reducing the risk of delays during installation and commissioning.” said Michal Balcer, Project Manager.
Following completion of the test programme, the equipment was delivered to Scotland for installation and commissioning on the Skandi Constructor by a team of Protea’s support engineers.
Initial offshore trials were completed in the North Sea late in 2013, and since then the equipment has been used extensively on live intervention projects both in the North Sea, and off the coast of West Africa.
“This fast track project allowed Protea to demonstrate the full extent of its capabilities – from concept development, detail design through to production and installation and commissioning. We look forward to delivering similar challenging projects in the future.” commented Tomasz Paskiewicz.
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Shell lifts first crude oil from the Majnoon oilfield

Shell reported that the Majnoon oilfield it operates in partnership with South Oil Company (SOC), Petronas and Missan Oil in Southern Iraq has successfully exported its first shipment of crude oil to Shell trading, a significant milestone for the oilfield.

The achievement comes as production at the Majnoon oilfield has reached a current average of 210,000 barrels of oil per day, well in excess of the 175,000 barrels per day (bpd) First Commercial Production target which initiates the commencement of cost recovery and was achieved after extensive rehabilitation works at the oilfield.

“This is a historic event for Iraq’s energy industry. The lifting of Shell’s first oil shipment from Majnoon has great significance to us and our partners in the Government as it is a testimony to our shared progress and signals the start of Majoon’s long-term journey toward generating further revenue for Iraq’s economy, and as an investment in Iraq’s future” said Hans Nijkamp, Vice President and Chairman of Shell in Iraq.

Nijkamp added that progress on the Majnoon field would not have been possible without the support of the South Oil Company and our partners Petronas and Missan Oil Company.

Shell and its partners successfully recommenced production from Majnoon in September 2013 following the completion of major overhaul works, including 28 square kilometres of mine clearance, extensive refurbishment of brownfield facilities to meet safety standards, and the construction of a new greenfield central processing facility – the largest to be built in Iraq in the last decade – to allow for increased production capacity.

To date, 18 new wells have been drilled, while the project has created more than 2,850 jobs for Iraqi’s from the neighbouring communities.
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Gudrun on stream

Statoil and its partners (GDF SUEZ and OMV) started production on the Gudrun oil and gas field in the North Sea.

"Gudrun is the first new Statoil-operated platform to come on stream on the Norwegian continental shelf since 2005. This is a red-letter day for the company," said Arne Sigve Nylund, Statoil's executive vice president for the Development and Production Norway business area.

The new field contributes to important production from the Norwegian shelf. Statoil expects to recover 184 million barrels of oil and gas (oil equivalent) from the field.

"Gudrun illustrates how we can maximise value creation and realise new projects on the Norwegian shelf by combining new field developments with existing pipelines and facilities," said Nylund.

Around 16.5 million man hours have gone into the Gudrun field development, and a significant number of suppliers from many different countries have contributed to this effort.

The Gudrun investment decision was made during the financial crisis. When the plan for development and operation (PDO) was submitted in 2010, Gudrun was Statoil's only mega-project (investments in excess of NOK 12 billion). Now Gudrun is the first in a long line of field developments operated by Statoil.
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Community engagement value to gas projects

Better community engagement can help add value to onshore gas projects in Australia, according to GasFields Commission Queensland chairman, John Cotter. Mr Cotter was speaking in Perth today (Monday) at the Australian Petroleum Production and Exploration Association (APPEA) annual conference. 

The GasFields Commission is an independent statutory body overseeing the relationships between the onshore gas industry, rural landholders and regional communities in Queensland. Mr Cotter said the cost of gas development in Australia is considered high relative to other countries especially when it comes to exploration, well development and project execution.

“As seen in Queensland with the recent rapid growth of the coal seam gas to liquefied natural gas (CSG-LNG) export industry, the cost and timing of these critical phases has depended to a large extent on a level of community support.

“Negotiating access to land and managing the social, environmental and economic impacts of these projects for issues such as groundwater, roads, housing and local services all require significant community engagement to help build understanding and trust.

“Better community engagement can also help lower ‘social’ risk for projects which has become increasingly important factor for many financiers and investment firms when considering where to direct their dollars. 

However, Mr Cotter said from his experience in Queensland, the onshore gas industry is now lifting its game on community engagement.

 “I’m encouraged by the growing number of explorers and developers who now engage with the Commission and who are proactively seeking to build a social licence for their projects.”

 He said strong and decisive government leadership in Queensland has also helped provide the right balance between the needs of the community, resource sector and agriculture.

 “The new regional planning laws passed by the Queensland Parliament last month provide a fairer and more balanced framework in which to better plan and assess upfront mining and gas developments especially in sensitive areas of prime agricultural land.

 “Importantly the new laws offer strong incentives for resource companies to reach mutually beneficial agreements with landholders. It allows regional communities and the government to more properly plan for and apply common sense conditions on new developments.

 He said with Queensland’s CSG-LNG industry set to expand its well development program over coming decades and the rise in shale gas exploration activity, there is still much more to be done to build and maintain community trust and understanding across the State.

 Mr Cotter said bringing the science and research to the table on critical issues like groundwater has been another important factor in building community confidence in Queensland and is a key focus for the GasFields Commission.

 “In addition to the extensive groundwater technology and knowhow of the CSG industry, Queensland has its own independent agency – the Office of Groundwater Impact Assessment (OGIA) - to model and monitor the immediate and long term water impacts.

 “OGIA also undertakes its own comprehensive research program investigating a range of related groundwater issues from aquitard permeability to aquifer interconnectivity and groundwater chemistry.” 

“There is a huge amount of science that underpins the onshore gas industry – however more needs to be done by industry, government and the science community themselves to better communicate that science and help to better inform the public,” he said.

 Mr Cotter reiterated that in the same way Australian farmers have the ongoing challenge of explaining to urban audiences how their food is produced, so to the onshore gas industry has to do a better job of explaining the energy story.

 “It’s not about how many royalties or jobs the industry creates but pure and simple how you produce the gas that fires up their barbeque, powers up their home or runs their factory,” he said.
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Sunday 6 April 2014

Well-functioning energy market key to Europe

There is a pressing need to change Europe's energy policy framework to make it more predictable and market oriented. This was a key message conveyed by Statoil natural gas senior vice president Rune Bjørnson at a conference in Brussels earlier this week. Statoil is the second-largest supplier of gas to Europe. “The good news is that it can be done. The ongoing process in Europe of establishing an energy and climate policy framework post-2020 is a golden opportunity to achieve this,” said Bjørnson. “Our position is clear—we support a single CO2 target with at least 40% emission cuts in 2030, driven by a strengthened and more flexible CO2 emissions trading system. This will help drive emission reductions in the most cost-efficient way.” Bjørnson underlined that if Europe is to succeed in reaching its decarbonisation target of 85-90% reductions by 2050, Europe needs to get rid of coal. The current European CO2 price does not provide an incentive for such a change. In fact, low global coal prices combined with a low CO2 price has seen Europe increase its share of coal in the energy mix. “Natural gas is one of Europe's most important and versatile sources of energy. In a low-carbon future, natural gas has to have a large share in the energy mix,” said Bjørnson. He reflected that Europe's drive to diversify its energy sources is understandable. Yet, it is important to not lose sight of that Europe is very well supplied and diversified. Further, the region is surrounded by huge natural gas resources. “A well-functioning market is the best way of attracting this gas to Europe,” said Bjørnson. Norwegian gas, of which Statoil produces and markets a large share of, is and will remain an important source of gas supply to EU. It accounts for more than 20% of the demand. The resources are connected to Europe through an extensive and robust pipeline network.
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Friday 4 April 2014

MetraWeather at 2014 APPEA

MetraWeather will demonstrate its breakthrough products for the oil and gas sector at the 2014 APPEA (Australian Petroleum Production & Exploration Association) conference in Perth from 6–9 April.

 “The APPEA conference is a central part of the Australasian oil and gas industry events calendar. Major players from around the region will be attending.

We’re looking forward to showing them what our forecasting can do for their operations,” said MetraWeather Chief Executive Peter Lennox.

 MetraWeather is providing state-of-the-art customised forecasts to a liquefied natural gas port in Papua New Guinea to help increase safety and operational efficiency.

 “These forecasts provide greater insights than the ones you read about in the paper or see on TV. Customers such as Anadarko, Esperance Ports, Exxon Mobil, Geraldton Port, Port Hedland, and Woodside take our forecasts to ensure their assets and operations are not impacted by unforeseen weather events,” said Lennox.

 MetraWeather will be demonstrating its MetOceanView and MetConnect products at APPEA–solutions that can provide customised forecasts for any location on Earth.

 The company has expanded its Australian customer base and recently started providing forecasts to Sydney Ports.

 The services MetraWeather is providing include wind speed, direction and gusts as well as wave height, and swell and tide through its online, industry-specific MetOceanView software.

 Sydney Ports will also have access to MetraWeather’s interactive under-keel clearance and berth safety forecasts, helping to plan not only for the safety of ships in the harbour, but also for those wanting to enter.
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Global AUV Fleet to increase 42% by 2018

Douglas-Westwood (DW) forecast that the global AUV (autonomous underwater vehicle) fleet will increase 42% in the 2014-2018 period, compared to the previous five years. The fleet is forecast to total 825 units in 2018, led by strong demand in the military sector. These are findings from DW’s 5th edition of the World AUV Market Forecast which covers the key commercial themes relevant to players across the value chain in all AUV sectors. “The military sector makes up 50% of AUV demand, with North America accounting for 75% of this market in 2014. However, this market share may decrease to 70% by 2018, as emerging economies increasingly invest in their military fleets. Overall growth of military demand in AUVs closely mirrors the investment in unmanned aircraft – so called ‘drones’," said report author, Eduardo Ribeiro. “Increasing environmental awareness continues to drive demand for use of AUVs on research activities, with environmental sensing and research mapping combined forming approximately 47% of the current AUV fleet. However, the research sector may represent a smaller proportion of the market by 2018, as commercial activities gain pace.”
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Thursday 3 April 2014

Total E&P Nigeria picks Reflex Marine's FROG-XT4

Reflex Marine has recently supplied the first production unit of the newly developed FROG-XT4, to Total E&P Nigeria Ltd.

 The FROG-XT is an advancement of the company’s industry-leading personnel transfer technologies and the product of more than twenty years of experience in the oil and gas industry.

 An estimated one million safe crew transfers are carried out every year using the Reflex Marine’s FROG and TORO devices.

 The FROG-XT4 was developed in line with the industry’s continued drive to improve the safety of its operations – a vision which Reflex Marine shares.

 The device provides greater comfort and safety to passengers, wider operating parameters, and higher capacity transfers.

Its compact frame allows for easy storage and cost effective shipping. Lifting points are now at eye level, making them easier to access and inspect, and a new stretcher mounting system enables rapid deployment in a medical evacuation situation (MedEvac).

 Reflex Marine has previously provided a number of FROG and TORO units to Total for use in Nigeria and other regions of the world, with the FROG-XT4 being the latest addition to that fleet. The new XT unit is to be used on the Odudu Field.

 After the global FROG-XT4 launch in February, the response from the wider industry has been really positive, with this first unit heading to Nigeria, and a second unit destined for Mozambique for another international operator.
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Statoil farms down in Angolan pre-salt

Statoil has signed an agreement to farm down a 15% interest to WRG Angola Block 39 Limited in the Statoil-operated block 39 offshore Angola in the Kwanza pre-salt basin.

 WRG is a 50/50 joint venture comprising White Rose Energy Ventures and Genel Energy plc. “This is part of Statoil's active portfolio management.

The farm-down reflects the attractiveness of Statoil’s acreage in Angola and having WRG onboard allows us to share exploration risk, while retaining a significant working interest.

WRG brings technical experience to a challenging geological setting, and we look forward to a productive relationship with them in Angola,” said Gareth Burns, senior vice president for exploration strategy and business development in Statoil.

 Statoil operates block 39 and retains a 40% interest after the farm down. The remaining 30% interest is held by Sonangol P&P, 15% interest by Total and 15% interest by WRG.

 WRG has also acquired from China Sonangol International Holdings Limited its 15% interest in the Statoil-operated block 38.

Following the acquisition Statoil’s 55% interest remains unchanged.

The remaining 30% interest is held by Sonangol P&P and 15% interest by WRG.

 The deals are subject to approval by Sonangol E&P, the Angolan minister of petroleum and the licence partners.
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Wednesday 2 April 2014

Customised forecasts for major PNG gas project

MetraWeather is delivering customised state-of-the-art weather, wave and hazard forecasts to customers in Papua New Guinea, including a PNG LNG (liquefied natural gas) project, to help increase safety and operational efficiency.

 Safety is critical, with the LNG plant’s marine terminal as the designated point for loading liquefied natural gas onto ships.

 “It can take 24 hours to load each vessel. Safe berthing, loading and departure are major considerations of LNG marine operations.

The weather forecasting products will provide accurate real-time and forecast information to help the Project plan its operations,” said MetraWeather Business Development Manager, Peter Fisher.

 With local weather forecasting focussed on public forecasts rather than specialised industrial forecasting, MetraWeather will provide the Project’s LNG Plant with detailed forecasting.

 A MetraWeather meteorologist interprets weather data feeds and delivers daily briefings including wind, wave, and weather forecasts, as well as a weather threat matrix forecasting the likelihood of heavy rain, gales and lightning.

 “The forecasts will help reduce downtime, increase efficiency and help improve health and safety compliance,” Fisher said.
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Fugro in Aberdeen Harbour Environmental Impact Assessment

Fugro EMU has been appointed to undertake a full Environmental Impact Assessment (EIA) and prepare an Environmental Statement (ES) in relation to the expansion of Aberdeen Harbour.

 This potential expansion will involve the construction of a new facility in Nigg Bay to the south of the existing harbour. Fugro EMU is providing overall project management and coordination of the EIA and ES with the support of the Waterman Group, who are managing and co-ordinating the terrestrial elements of the EIA. 

Aberdeen Harbour has links with over 39 countries worldwide, it is a vital support to Scotland’s oil and gas sector and is the main commercial port supporting the North East of Scotland.

 Classed as one of 14 projects considered by the Scottish Government to be of national importance within their 3rd National Planning Framework – Proposed Framework Document, the proposed expansion will see the construction of a modern, state-of-the-art harbour facility to meet the demands of the 21st century and to further support international trade.

 The project as a whole is estimated to contribute nearly £1 billion per annum to local and national economies, and support 15,000 jobs.
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Seadrill secures multiple jack-up contracts

Seadrill has secured new contracts for the jack-up units West Tucana, West Telesto, West Ariel, and West Prospero.

 The contract for the West Mischief has been extended by four months.

 The total revenue potential for the four new contracts and one extension is approximately US$319 million.

 The West Tucana, a Friede & Goldman JU-2000E jack-up rig, has secured a contract offshore Angola with Cabinda Gulf Oil Company Limited (CABGOC) - Chevron's wholly owned operating unit in Angola. 

The contract is for a firm period of 24 months. The total revenue potential for the primary contract term is approximately US$168 million inclusive of an estimated US$8.5 million of mobilization.

 The West Tucana is currently operating in Vietnam and will likely be available to commence its charter in late November 2014. The West Telesto, a Friede & Goldman JU-2000E jack-up rig, has secured a contract offshore Australia with Origin Energy Limited.

 The contract is for a firm period of two wells, expected to be 51 days each, plus two option wells. The total revenue potential for the primary contract term is approximately US$31 million inclusive of mobilization.

 The West Telesto is currently operating in Vietnam and will likely be available to commence its charter in the fourth quarter of 2014. The West Ariel, a Keppel FELS 'B' Class jack-up rig, has secured a contract offshore Congo with ENI Congo SA.

 The contract is for a firm period of 12 months plus an option of 12 months. The total revenue potential for the primary contract term is approximately US$89 million inclusive of an estimated US$8.5 million of mobilization.

 The West Ariel is currently operating in Vietnam and will likely be available to commence its charter in late April or early May 2014.

 Eni Congo has extended the charter of the LeTourneau Super 116-E jack-up rig West Mischief for four months at an increased day rate.

This extension not only represents an additional US$24 million to the total value of the contract but also demonstrates the strong working relationship between the two companies.

 The West Prospero, a Keppel FELS 'B' Class jack-up rig, has secured a contract offshore Vietnam with JVPC.

 The contract is for a firm period of one well, expected to be 40 days. The total revenue potential for the primary contract term is approximately US$6.5 million.

 The West Prospero is currently operating in Vietnam and will likely be available to commence its charter this month following the completion of its current contract. 

Following these fixtures, Seadrill has 92% of its jack-up capacity contracted for 2014 and 64% for 2015. 

The total order backlog for the jack-up fleet is US$4.4 billion and average remaining contract duration is 2.6 years.
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Tuesday 1 April 2014

Industry views on digital revolution

Oil and gas professionals were asked to assess the industry’s state of readiness for advances in digital technology in a poll conducted on the first day of the SPE Intelligent Energy International exhibition and conference in Utrecht. The question posed by BP was: how many of the world’s plants, rigs and production platforms are ready to take advantage of the advances in digital technologies without the need for major upgrades? The majority of respondents (53%) said less than 25% of assets were ready. IE2014 is expected to attract more than 2,000 business leaders and senior engineering professionals from across the world.
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