A new study<http://www.noia.org/wp-content/uploads/2013/12/The-Economic-Benefits-of-Increasing-US-Access-to-Offshore-Oil-and-Natura....pdf> released by the National Ocean Industries Association (NOIA) and the American Petroleum Institute (API) shows that opening the U.S. Atlantic Outer Continental Shelf (OCS) to offshore oil and natural gas development could have remarkable benefits for job creation, domestic investment, revenue to the government, and U.S. energy security. The study, conducted by Quest Offshore Inc., shows that offshore oil and natural gas development in the Atlantic OCS could create nearly 280,000 jobs, spur an additional $195 billion in new private investment, contribute up to $24 billion per year to the U.S. economy, generate $51 billion in new revenue for the government, and add 1.3 million barrels of oil equivalent per day to domestic energy production, between 2017 and 2035. These jobs are in addition to any jobs and revenue generated by offshore wind or wave energy projects that might take place.
“It is truly amazing what the offshore energy industry already does for America while only having access to less than 15 percent of the Outer Continental Shelf. It would be more amazing to stop limiting ourselves to this one small area. Opening the Atlantic coast to responsible oil and natural gas development could add to our workforce, overall economic growth, government coffers and energy security,” said NOIA President Randall Luthi.
If lease sales in the Atlantic OCS were held in 2018, exploratory drilling could begin the following year with the first production of oil and natural gas expected in 2026. Major capital investments, job creation, and revenue to the government would all begin years before the first barrel goes to market.
“The key is getting Atlantic lease sales included in the 2017-2022 Offshore Leasing Plan. None of the benefits shown in the study can be realized without actual sales. Everyone is looking for the silver bullet that will decrease unemployment, increase federal revenue without raising taxes, and make America more energy secure. Tapping more of our offshore energy is that elusive silver bullet,” said Luthi.
By 2035, the Atlantic coast region could see 215,000 new jobs as a result of offshore oil and gas activity. Inland states outside the Atlantic coast region could see 63,950 new jobs. The largest employment impact is predicted for North Carolina<http://www.noia.org/wp-content/uploads/2013/12/NOIA_NC_12.3.13.pdf> (55,422 new jobs), South Carolina<http://www.noia.org/wp-content/uploads/2013/12/NOIA_SC_12.3.13.pdf> (35,569 new jobs), and Virginia<http://www.noia.org/wp-content/uploads/2013/12/NOIA_VA_12.3.13.pdf> (24,979 new jobs). Mid and North Atlantic States could also see great job and revenue benefits. Maryland, Delaware, Pennsylvania, New Jersey and New York could see over 40,000 new jobs, contributions to the economy of over $3.7 billion and an increase in state revenues in the neighborhood of $2.7 billion by 2035. Active oil and gas development off the coasts of Newfoundland and Nova Scotia might mean similar resources are located off the New England coast. Should that be so, the New England states could see 45,000 new jobs and state revenues of over $5 billion in that same time frame.
If offshore revenue sharing were legislated for coastal states to receive 37.5 percent, the federal government would receive over $33 billion a year and individual states would receive over $19 billion a year by 2035.
“Opening up the Atlantic OCS is only part of the energy equation. The oil and natural gas industry must also be committed to significant financial investment and continue to show that these resources are developed efficiently and safely. A cooperative, respectful relationship between industry and regulators means we can develop those oil and natural gas resources and maintain the highest safety and environmental standards,” said Luthi.
The full study<http://www.noia.org/wp-content/uploads/2013/12/The-Economic-Benefits-of-Increasing-US-Access-to-Offshore-Oil-and-Natura....pdf>, and executive summary<http://www.noia.org/wp-content/uploads/2013/12/Executive-Summary-The-Economic-Benefits-of-Increasing-US-Access-to-Off....pdf>, as well as national and state infographics<http://www.noia.org/tap-offshore-energy> are available at www.noia.org/TapOffshoreEnergy<http://www.noia.org/TapOffshoreEnergy>.
NOIA is the only national trade association representing all segments of the offshore industry with an interest in the exploration and production of both traditional and renewable energy resources on the nation’s outer continental shelf. NOIA’s mission is to secure reliable access and a fair regulatory and economic environment for the companies that develop the nation’s valuable offshore energy resources in an environmentally responsible manner. The NOIA membership comprises about 300 companies engaged in business activities ranging from producing to drilling, engineering to marine and air transport, offshore construction to equipment manufacture and supply, telecommunications to finance and insurance, and renewable energy.
The 488-meter-long-hull of Shell's Prelude floating liquefied natural gas (FLNG) facility has been floated out of the dry dock at the Samsung Heavy Industries (SHI) yard in Geoje, South Korea, where the facility is currently under construction. Once complete, Prelude FLNG will be the largest floating facility ever built. It will unlock new energy resources offshore and produce approximately 3.6 million tons of liquefied natural gas (LNG) per annum to meet growing demand. "Making FLNG a reality is no simple feat," said Matthias Bichsel, Shell Projects & Technology Director. "A project of this complexity – both in size and ingenuity – harnesses the best of engineering, design, manufacturing and supply chain expertise from around the world. Getting to this stage of construction, given that we only cut the first steel a year ago, is down to the expert team we have ensuring that the project's critical dimensions of safety, quality, cost and schedule are delivered."
FLNG will allow Shell to produce natural gas at sea, turn it into liquefied natural gas and then transfer it directly to the ships that will transport it to customers. It will enable the development of gas resources ranging from clusters of smaller more remote fields to potentially larger fields via multiple facilities where, for a range of reasons, an onshore development is not viable. This can mean faster, cheaper, more flexible development and deployment strategies for resources that were previously uneconomic, or constrained by technical or other risks.
Prelude FLNG is the first deployment of Shell's FLNG technology and will operate in a remote basin around 475 kilometers north-east of Broome, Western Australia for around 25 years. The facility will remain onsite during all weather events, having been designed to withstand a category 5 cyclone.
Shell is the operator of Prelude FLNG in joint venture with INPEX (17.5%), KOGAS (10%) and OPIC (5%), working with long-term strategic partners Technip and Samsung Heavy Industries (the Technip Samsung Consortium).
• Prelude is expected to produce 3.6 million tons per annum (mtpa) of LNG, 1.3 mtpa of condensate and 0.4 mtpa of LPG, and to remain on location for approximately 25 years.
• The Prelude FLNG hull is longer than four soccer fields laid end to end and it is longer than the Empire State Building is tall.
• The LNG storage tanks have a capacity equivalent to approximately 175 Olympic swimming pools.
• Once complete, the FLNG facility will weigh more than 600,000 tons fully loaded, displacing the same amount of water as six of the world's largest aircraft carriers.
• Whilst the Prelude facility is big it is also small – taking up 1/4 the area of an equivalent onshore LNG plant.
• Existing technology that has been adapted for FLNG includes:
• Close coupling between the producing wells and the LNG processing facility – This is the physically short length from one to the other
• Mooring systems – making it bigger for the largest floating facility ever built and dealing with the associated forces.
• The marinisation of processing equipment, so that it will work on a floating facility
• Water intake risers, as water will be used as part of the cooling process needed to turn the gas into LNG.
• LNG tanks that can handle sloshing – that is the motions of the liquid LNG within the hull if and when there are stormy seas.
• LNG offloading arms which will transfer LNG from the facility to the ships moored alongside – two moving facilities instead of just one.
• On 2 September 2013, Woodside announced the use of Shell FLNG technology as the development concept to progress through the Basis of Design (BOD) phase to commercialize the Browse gas fields.
Noble Energy, Inc. (NYSE: NBL) announced on Wednesday discoveries at the Dantzler exploration well in the Deepwater Gulf of Mexico and at the Tamar Southwest (SW) exploration well offshore Israel.
At Dantzler, wireline logging data indicates that the well encountered over 120 net feet of primarily crude oil pay in two high-quality Miocene reservoirs. The discovery well, located in Mississippi Canyon 782, was drilled to a total depth of 19,234 feet in 6,580 feet of water. Dantzler is located 12 miles west of the Company's Rio Grande development area, which includes discoveries at Big Bend and Troubadour. Discovered gross resources(1) at Dantzler are now estimated at between 55 and 95 million barrels of oil equivalent.
The Tamar SW well, testing a new exploration prospect, encountered approximately 355 feet of net natural gas pay within the targeted Miocene intervals. Tamar SW, which was drilled to a total depth of 17,420 feet in 5,405 feet of water, is the Company's eighth consecutive discovery in the Levant Basin. The field is located approximately 8 miles southwest of the Tamar field. Evaluation of drilling data and wireline logs has confirmed the range(1) of gross resources of the field to be between 640 billion cubic feet (Bcf) of natural gas and 770 Bcf. The well encountered high-quality reservoir sands, with per well productivity anticipated to be approximately 250 million cubic feet of natural gas per day.
Mike Putnam, Noble Energy's Vice President, Exploration and Geoscience, commented, "These new discoveries, combined with our exploration and appraisal successes earlier this year, have continued our successful organic exploration track record and identified new sources of future growth for Noble Energy. Dantzler represents our third consecutive exploration discovery in the Miocene trend of the Gulf of Mexico and complements our existing developments at Rio Grande and Gunflint. The field's proximity to our Rio Grande area provides the opportunity for an accelerated development at Dantzler. In Israel, the discovery at Tamar SW further enhances our discovered resources in the Eastern Mediterranean, which now totals nearly 40 trillion cubic feet of natural gas. The discovery also underpins our ability to meet the growing market demand in Israel and within the region."
Noble Energy operates Dantzler with a 45 percent participating interest. Additional interest owners are entities managed by Ridgewood Energy Corporation (including Riverstone Holdings LLC and its portfolio company ILX Holdings II, LLC) with 35 percent and W&T Energy VI, LLC (a wholly owned subsidiary of W&T Offshore Inc.) with 20 percent. In the Deepwater Gulf of Mexico, the Company anticipates drilling at least two additional Miocene trend prospects in 2014.
Following completion of operations at Tamar SW, the drilling rig will be released to another operator. Noble Energy operates Tamar SW with a 36 percent working interest. Other interest owners are Isramco Negev 2 with 28.75 percent, Delek Drilling with 15.625 percent, Avner Oil Exploration with 15.625 percent and Dor Gas Exploration with four percent.
(1) Range of resource estimate based on 75th and 25th percentile probabilities.
Gulf producing states to share in revenue from GOMESA blocks
As part of President Obama’s all-of-the-above energy strategy to continue to expand safe and responsible domestic energy production, the Bureau of Ocean Energy Management (BOEM) has announced that it will hold Gulf of Mexico Eastern Planning Area oil and gas lease sale 225 in New Orleans on March 19, 2014, immediately following the proposed Central Planning Area (CPA) Sale 231.
Proposed Sale 225 is the first lease sale proposed for the Eastern Planning Area under the 2012 – 2017 Outer Continental Shelf Oil and Natural Gas Leasing Program, and the first sale offering acreage in that area since Sale 224, held in March of 2008.
“This proposed sale is another important step to promote responsible domestic energy production through the safe, environmentally sound exploration and development of the Nation’s offshore energy resources,” said BOEM Director Tommy Beaudreau.
The proposed sale encompasses 134 whole or partial unleased blocks covering approximately 465,200 acres in the Eastern Planning Area. The blocks are located at least 125 statute miles offshore in water depths ranging from 2,657 feet (810 meters) to 10,213 feet (3,113 meters). The area is bordered by the Central Planning Area boundary on the West and the Military Mission Line (86º 41’W) on the East. It is south of eastern Alabama and western Florida; the nearest point of land is 125 miles northwest in Louisiana.
Of the 134 blocks available in this sale, 93 are located in the same area offered in 2008’s Eastern Planning Area Sale 224 and are subject to revenue sharing under the Gulf of Mexico Energy Security Act of 2006 (GOMESA), which provides that the states of Alabama, Mississippi, Louisiana and Texas share in 37.5 percent of the bonus payments. These four Gulf producing states will also share in 37.5 percent of all future revenues generated from those leases. Additionally, 12.5 percent of revenues from those leases are allocated to the Land and Water Conservation Fund. The remaining 41 blocks, located just south of that area, are not subject to revenue sharing under GOMESA.
BOEM estimates the proposed lease sale could result in the production of 71 million barrels of oil and 162 billion cubic feet of natural gas.
The decision to move forward with plans for this lease sale follows extensive environmental analysis, public comment, and consideration of the best scientific information available. In October, BOEM published a Final Environmental Impact Statement (EIS) for proposed Eastern Planning Area Sales 225 and 226. The Final EIS updated information gathered in three previous EIS’s. EPA Sale 226, scheduled for 2016, is the only other Eastern Gulf of Mexico lease sale proposed under the current Five Year Program.
The proposed terms of this sale include conditions to ensure both orderly resource development and protection of the human, marine and coastal environments. These include stipulations to protect biologically sensitive resources, mitigate potential adverse effects on protected species, and avoid potential conflicts associated with oil and gas development in the region.
All proposed terms and conditions for Lease Sale 225 will be finalized when the Final Notice of Sale is published at least 30 days prior to the Sale.
The Notice of Availability of the Proposed Notice of Sale can be viewed today in the Federal Register at: www.archives.gov/federal-register/public-inspection/index.html. Proposed terms and conditions for the sale are fully explained in a new streamlined format, available at: www.boem.gov/Sale-225/.
CD’s of the sale package as well as hard copies of the maps can be requested from the Gulf of Mexico Region’s Public Information Office at 1201 Elmwood Park Boulevard, New Orleans, LA 70123, or at 800-200-GULF (4853).
The Gulf of Mexico contributes about 25 percent of U.S. domestic oil and 11 percent of domestic gas production, providing the bulk of the $14.2 billion in mineral revenue disbursed to Federal, state and American Indian accounts from onshore and offshore energy revenue collections in Fiscal Year 2013. That was a 17 percent increase over FY 2012 disbursements of $12.15 billion, due primarily to $2.77 billion in bonus bids received for new oil and gas leases in the Gulf of Mexico
The 2012-2017 Five Year Program offers nearly 219 million acres on the U.S. Outer Continental Shelf for lease, making all areas of the OCS with the highest oil and gas resource potential available for exploration and development. The plan includes up to 15 lease sales in the Gulf of Mexico and Alaska. The first three sales under the Five Year Program offered more than 79 million acres for development and garnered $1.4 billion in high bids.
Statoil has obtained 100% equity share in an exploration permit in the Reinga-Northland Offshore Release Area in the New Zealand Block Offer 2013.
The permit covers approximately 10,000 square kilometers and is located approximately 100 kilometers from shore to the west of New Zealand's North Island, in water depths ranging from 1,000 to 2,000 meters.
"We are very pleased with the award, which is in line with the sharpened exploration strategy Statoil has pursued over the last three years. Safe and secure operations are our first priority as we proceed to explore the permit's potential," says Erling Vågnes, senior vice president for Statoil's exploration activities in the Eastern hemisphere.
The work program is designed to fully evaluate the prospectivity of the permit in a staged manner within the 15-year permit timeframe. Statoil is committed to collect new 2D seismic data and to undertake a multibeam seafloor survey with selected core samples within the first three years. Following an analysis and interpretation of this data, Statoil will decide on further steps.
"Health, safety and the environment (HSE) is always Statoil's first priority. We will draw on our broad global experience in seismic data collection to secure safe operations offshore New Zealand," says Vågnes.
Statoil will now enter into an extensive dialogue process with New Zealand authorities, and engage with a wide range of stakeholders in order to understand the local community, and ensure adherence with local regulations, customs and considerations.
"Statoil strongly believes in a good dialogue with the communities we operate in," Vågnes says.
"New Zealand authorities have emphasized that Block Offer 2013 is an important step towards realizing the potential of New Zealand's oil and gas resources. We are glad that our bid was accepted and look forward to being a part of New Zealand's next phase in oil and gas development."
New Industries, Inc. recently completed fabrication, inspection and testing of in-line valve (ILV) and sled (ILS) structures for a large diameter deep water pipeline in the Gulf of Mexico.
"On this project, we completed 48 welds which included 16 welds on the ILV structures and 32 welds on the ILS structures. The materials that were welded included ASTM A707, ASTM F65, and API 5L X65 material. Additionally, the piping ranged from 20" OD to 25.494" OD with wall thickness ranging from 1.30" to 1.969," stated Chad Paradee, New Industries' Project Manager. "This project was successful due to great teamwork from all parties involved including New Industries, the installation contactor, and the end user."
Structural fabrication included cradles, yokes, support frames, and lifting devices for both the ILV and ILS structures. Pressure containing piping was completed with GTAW, FCAW, SAW, and GMAW processes.
FAT activities included hydrostatic testing and gauging. New Industries also completed EFAT activities to stimulate installation on the deepwater vessel.
"This project is the first of three jobs for the deep water Gulf of Mexico for one of the world's largest pipeline installation contractors." stated company President, Bill New. "I am especially proud of the outstanding quality and safety performance of our employees and subcontractors on this challenging project."
On behalf of the world's largest oilfield services company, a Boeing B747 freighter was chartered from West-African experts ANA Aviation Services to fly the urgent cargo from Singapore to Luanda in Angola.
Originally booked on sea freight, a last minute change of plan made it necessary to send the cargo via air charter in order for the equipment to reach the destination promptly.
The out-of-gauge consignment included two 18 meter and two 16 meter long offshore baskets as well as other smaller pieces of oil well equipment such as downhole tools to improve efficiency of drilling and production programs.
An effective loading plan is key for outsize air cargo charters. Our aircraft charter specialist had to ensure that the space on the aircraft was well utilized and the cargo securely loaded.
Our cargo charter teams in the UK and Singapore collaborated closely to manage a tight coordination of airside permits for extra high-loaders, crane as well as vehicles and successfully completed a complicated loading sequence against a tight time-frame.
Having a dedicated team on the ground, including a representative from MHT, meant that any last minute problems were dealt with promptly and professionally to avoid any costly delay.
Due to careful load planning and expertise, the client benefitted from the most comprehensive logistics solution and enjoyed over $500,000 savings on the alternative charter option of an Antonov AN-124 aircraft.
Claxton Engineering Services Ltd, a member of the Acteon Group's risers, conductors and flowlines business, has celebrated the 10th anniversary of its success with the world's first rigless platform well abandonment and continues to set new standards in engineering innovation.
In the 10 years since its feat at the Perenco Well A1 in the Leman field, southern North Sea, UK, Claxton has become the North Sea's preeminent riser supplier and launched an expanding range of product, process and running tool innovations. The company has also been involved in decommissioning more than 60 North Sea platform wells, in most cases without using a drilling rig or lift vessel. In total, the Claxton decommissioning tooling spread has been used on more than 260 successful well abandonment and conductor removal projects.
Claxton has also achieved significant geographical expansion since 2003, having opened new facilities in Norway, Singapore and the Middle East. Today, the company can select from more than 4,000 items of rapid call-off stock and swiftly design new components to meet urgent operational challenges.
For that first rigless abandonment project, Claxton used a custom conductor reaction recovery system designed and manufactured specifically to interface with the Leman platform and to retrieve and handle well trees and tubulars. Its full casing recovery package was also required. The SABRE™ abrasive water jet cutting system played a key role and has since been used on many significant abandonment campaigns.
When then Leman Abandonment was completed, calculations showed that the overall cost of the project, as conducted by Claxton and Acteon sister company, InterAct, was less than 50 percent of an equivalent rig-based solution. The Perenco Well A1 proved to be a game-changer with the introduction of pioneering technical solutions that have since become commonplace.
"A strong track record is important, but we are looking to the future. We have ambitious plans for growing our decommissioning capabilities to meet the needs of our clients. For instance, enhancements to our SWAT™ suspended well abandonment tool and the SABRE™ abrasive water jet cutting system will enable us to cut and abandon deeper wells. At the same time, we anticipate a significant increase in equipment spread and offshore crew numbers that will widen both our service capacity and our footprint," said Laura Claxton, Claxton's managing director.
Following the 2011 contract award from ExxonMobil, on behalf of the Marine Well Containment Company (MWCC), Burner Fire Control's agreement has been extended to design and supply additional Fire Safety Control equipment and services to all MWCC members in the event of a well incident in the deepwater Gulf of Mexico.
Wa Water Curtain(R) Rig Cooling: Radiant Heat Protection - Well Test Flaring. (PRNewsFoto/Burner Fire Control)ter Curtain(R) Rig Cooling: Radiant Heat Protection - Well Test Flaring.
The the scope of the contract includes Burner's Water Curtain ® Rig and Boom Cooling Systems, methonol cooling, and zoned supporting fire protection equipment. The Water Curtain ® will allow rig operations to flare oil & gas captured and minimize radiant heat risks to personnel, facilities, and equipment. During non-emergency operations, The Water Curtain ® Rig and Boom Cooling Systems are deployed to drilling rigs during well testing operations to maximize testing, regardless of external factors, such as changes in wind speed or direction and increases in oil / gas flow rates. Burner's Rig Cooling systems are designed for quick deployment and multi-facilities protection.
"We are honored to be selected and participate in the MWCC initiatives," says Butch Ridgedell, Manager of Burner Fire Control's Water Curtain ® Division, "This is a testament to the experience and performance of our company throughout the years, delivering results to our customers globally"
Wood Group Mustang has been awarded the contract to provide front-end engineering design (FEED) services for Hess Corporation's Stampede tension leg platform (TLP) to be located in 3,500 feet of water in the Gulf of Mexico, Green Canyon block. The TLP, with dry topsides weight of 11,500 tons, is being designed to produce 80,000 BPD oil, 60,000 BPD water and 120 MMSCFD gas at capacity.
Wood Group Mustang previously provided FEED and detailed design for Hess' Okume production facilities, located offshore Equatorial Guinea, which consisted of four fixed platform facilities with connecting bridges, two TLPs and associated pipelines.
"The combination of our resume of deepwater Gulf of Mexico topsides facilities and our longstanding relationship with Hess positions us well to deliver FEED services for this production facility. We are pleased to extend our project work for Hess from Equatorial Guinea to the US Gulf of Mexico," said Bob Lindsay, president of the Offshore Business Unit.
Wood Group Mustang is a market leader in the design of topsides for floating facilities and has designed more than half of the 42 floating facilities currently installed in the deepwater US Gulf of Mexico. Currently, Wood Group Mustang is providing engineering services for the topsides of 10 Gulf of Mexico facilities, with the combined potential to add almost one million barrels of oil per day (BOPD) to the world energy supply.
A long life acoustic monitoring system developed by Sonardyne International Ltd to detect minute changes in the seafloor due to settlement has been successfully deployed in South East Asia for Brunei Shell Petroleum (BSP). Installed in 45 meters of water, the network of Autonomous Monitoring Transponders (AMTs) that make up the system were supplied with compact subsea instrument housings and anti-trawl seabed frames custom designed by Sonardyne to provide protection from commercial fishing activities in the area.
Structure, pipeline and seabed settlement monitoring is regularly undertaken in life of field surveys. The challenge for operators is to acquire the data required to identify subtle changes over periods of several years, reliably and cost effectively. Sonardyne's solution is built around the company's sixth generation (6G) and Wideband 2 technology platform. This combination provides the capability to precisely and repeatedly measure vertical movements at the transponder locations; acquire and log sensor data from a variety of inbuilt and external sensors; and wirelessly transmit stored data at high speed to the surface for analysis. The autonomous functionality of the system enables it to operate for several years without intervention, eliminating the requirement and associated high costs of a vessel and ROV to be on location during the survey.
Due to the relatively shallow water depths of the survey location, it was identified early in the project that the AMTs would need protection against possible damage caused by fishing operations. The AMTs were each supplied in compact, glass sphere instrument housings and then encased within bespoke, low profile anti-trawl frames designed and manufactured by Sonardyne to provide excellent resistance to snagging by fishing nets, as well as corrosion and bio-fouling.
After an initial period of testing and configuration, the system is now fully operational and has been left to record and log data. Precise seabed pressure, temperature and salinity will be recorded every hour whilst non-critical data such as battery consumption and pitch and roll will be logged every day. When required, a vessel of opportunity will transit to the survey location and acoustically interrogate the AMTs to recover their data using a Sonardyne Dunker 6 modem deployed over the side of the vessel. The data will then be analyzed by specialists so that any noticeable trends in seafloor deformation may be identified.
"Since 2007, hundreds of AMTs have been deployed for a number long term seabed settlement and deformation monitoring projects. One such system is half way through a six year deployment and has so far made 90 million measurements," said Shaun Dunn, Sonardyne's Global Business Manager for Exploration. "This latest project has given us another chance to showcase our custom engineering capabilities which this time included designing and manufacturing a new anti-trawl seabed frame that will provide protection for the AMTs and ensure the survey remains on schedule."
Business Monitor has just released its latest findings on Indonesia's oil and gas sector in its newly-published Indonesia Oil & Gas Report.
Business Monitor believes that the outlook for Indonesia's oil and gas sector is becoming increasingly uncertain. They forecast a long-term decline in total liquids production and a stagnation of gas production. This is mainly a result of the slow pace of exploration and development, exacerbated by an increasingly uncertain regulatory environment as resource nationalism creeps into the government's policy towards the sector. Opportunities for exports will be further compromised by the domestic market's increasing energy demand. Hence, falling oil and gas exports is another key trend identified for Indonesian oil and gas.
Key Trends and Developments discussed in the report:
■ Business Monitor forecast that oil and gas reserves will most likely be on a downward trend in the coming decade: oil reserves are expected to decrease from an estimate of 4.0bn barrels (bbl) of oil at the beginning of 2013 to 3.7bn bbl in 2017, falling further still to 3.4bn bbl by 2022. For gas, they expect reserves levels to be stagnant as addition from exploration successes in East Kalimantan cancels out natural depletion from existing fields. Reserves are forecast to fall from 3.07tcm in 2013 to 2.80tcm in 2017, and fall further to 2.51tcm unless the pace of drilling activity picks up.
■ Despite this outlook, Indonesia is a country where much below-ground potential continues to exist. If the country relaxes its nationalist stance on resources, there is considerable upside potential for both oil and gas reserves - greater drilling of its unexplored deepwater areas and its unconventional resources - coalbed methane and shale gas.
Business Monitor expect total liquids production (excluding refinery processing gains) to rise from an estimate of 919,670b/d in 2013 to 926,180b/d in 2014 and 932,260b/d in 2015, owing to major fields finally coming on-stream or ramping up to their full production capacity. Thereafter, in the longer term Business Monitor see oil output trending downwards to 884,840b/d in 2017 and hitting a low of 808,280b/d by 2022.
Despite grand plans to expand the country's refining capacity, difficulty in financing greenfield projects on top of modernising old plants in a unfavourable policy environment will see limited change to Indonesia's downstream landscape. Business Monitor expects refining capacity to stay stagnant at around 1.12mn b/d from 2015 through to the end of their forecast period. Total refined oil product output is expected to rise initially from an estimate of 981,840b/d in 2012 to 990,600b/d in 2016 - a result of an increase in output from modernised Cilacap and Balikpapan. However, growing inefficiencies in older plants could reverse this uptrend as utilisation rate falls, thereby leading to a slide in production downwards to 973,840b/d by 2022.
Owing to production problems, Business Monitor expect total gas production to have fallen to 71.3bn cubic metres (bcm) in 2012. Major gas projects expected on-stream in the next five years should support a slight rise in production, which they forecast at 77.0bcm in 2017 as declining production rates from existing fields will be cancelled out by new gas developments. Thus Business Monitor expect production levels to stay relative stagnant at 76.7bcm by 2022. Regulatory risks remain great and policy uncertainty underpins their sombre outlook of Indonesia's gas production within their 10-year forecast period. The country's gas consumption is estimated at 39.1bcm in 2012. With an increasing amount of new gas from projects reserved for the domestic market, this allows room for domestic gas demand to grow to about 48.0bcm in 2017 and hit 55.7bcm by 2022.
Greater confidence in Indonesia could be inspired if there is a more consistent policy towards the oil and gas industry; for one, the permanent establishment of a new upstream regulator to replace BPMigas. Temporary regulator (at time of writing), SKKMigas, has yet to be made permanent. Given the corruption scandal plaguing the make-shift regulator, it is unlikely to receive full regulatory authority anytime soon in the future. Moreover, proposed plans could see SKKMigas assume the identity of a stateowned firm - renamed as the National Upstream Oil and Gas Development Company (PPMN) - which could take a participating interest in projects it jointly signs with contractors.
At the time of writing Business Monitor assumed an OPEC basket oil price for 2014 of US$101.80 per barrel (bbl), falling to US$100/bbl in 2015. Global GDP in 2014 is forecast at 3.1%, up from an assumed 2.6% in 2012. For 2015, growth is estimated at 3.3%.
Robert L. Wernli (First Centurion Enterprises) and Robert D. Christ (SeaTrepid International) are proud to announce the release of The ROV Manual, Second Edition, which provides a complete training and reference guide to the use of remotely operated vehicles (ROVs) for surveying, inspection, and research purposes. The authors are well-known experts in the field and were
supported by input from a broad network of industry specialists.
This new edition has been thoroughly revised and substantially expanded, with nine new chapters, increased coverage of mid-sized ROVs, and extensive information on subsystems and enabling technologies. Useful tips are included throughout to guide users in gaining the maximum benefit from ROV technology in deep water applications.
Intended for marine and offshore engineers and technicians using ROVs, The ROV Manual, Second Edition is also suitable for use by ROV designers and project managers in client companies making use of ROV technology.
A complete user guide to ROV technology and underwater deployment for industrial, commercial, scientific, and recreational tasks.
Substantially expanded, with nearly 700 pages that include nine new chapters and a new five-part structure separating information on the industry, the vehicle, payload sensors, and other aspects.
Packed with hard-won insights and advice to help you achieve mission results quickly and efficiently.
The ROV Manual, Second Edition is available on line in both print and e-book versions.
About the Authors:
Robert Wernli, Sr. is President of First Centurion Enterprises. He is an engineering consultant with
40 years experience in the field of ROVs and undersea technology. In addition to his technical publications, he is an award-winning author in fiction where he is continuing his work on a series of
Robert D. "Bob" Christ is President of SeaTrepid International, LLC, a full-service subsea robotics company operating a fleet of over 35 ROVs worldwide. Mr. Christ began his ROV career with Oceaneering then continued on as a co-founder of VideoRay (a leading OCROV manufacturer) and has continued his career as the founder of SeaTrepid. He has dual BS degrees from Louisiana Tech University and lives in heart of the US Offshore Oil & Gas industry in Southeastern Louisiana.
NYC-based PIRA Energy Group reports that the global economy continues to improve. On the week, the U.S. stock decline moderated. In Japan, runs continue rising, key product demands are stronger. Specifically, PIRA’s analysis of the oil market fundamentals has revealed the following:
Global Economy Continues to Improve
The global economy continues to improve, setting the stage for relatively strong oil demand growth next year. Fourth quarter global balances are tight and support ongoing price strength. Bearish supply darkens the 2014 price outlook, but PIRA reckons the downside will be limited with Saudi Arabia able to balance the market. The weakness will be felt mostly in the first half 2014 because of seasonal demand weakness and crude inventory builds.
U.S. Stock Decline Moderates
Overall commercial inventories fell slightly this past week, after four prior weeks of declines averaging 8.0 million barrels per week. Crude stocks built as crude imports stayed stubbornly high, especially from the Middle East. Product stocks drew as higher product supply and lower reported demand reduced the week-on-week product inventory decline. The year-on-year inventory excess remained modest, with the excess mostly in crude, largely related to new infrastructure associated with rapidly expanding North American production.
Japanese Runs Continue Rising Post Turnaround, Key Product Demands Stronger
Runs continued rising post-turnaround but crude imports moved strongly higher and stocks built 3.1 MMBbls. Both gasoline and gasoil demand displayed decent gains and inventories of both drew. Kerosene demand remained strong and stocks continued drawing. Refinery margins, again, moved slightly higher.
Scramble for LPG Supply Continues
U.S. propane stocks continue to draw at a rapid pace and are expected to end the year well behind last year's level. International LPG prices are reaching record levels amidst significant supply disruptions.
Ethanol Output Matches Yearly High
U.S. ethanol production rebounded the week ending November 22, equaling its annual high of 927 MB/D, which had been reached two weeks earlier. Inventories declined by 61 thousand barrels to 15.02 million barrels, only slightly higher than the three-year low of 14.96 million barrels reported near the end of October.
Ethanol Prices and Margins Spike in November
In November, U.S. ethanol prices and manufacturing margins skyrocketed to the highest level in two years, but gave back some of the gains last week. Very low inventories and a shortage of railcars to take ethanol to the blenders drove the market up. Companies are reluctant to hold stocks with the market in severe backwardation.
The information above is part of PIRA Energy Group's weekly Energy Market Recap, which alerts readers to PIRA’s current analysis of energy markets around the world as well as the key economic and political factors driving those markets.
AMEC, the international engineering and project management company, has been awarded a Project Management Consultancy services contract by Abu Dhabi Marine Operating Company (ADMA OPCO) for their Umm Lulu Phase-2 full field development projects offshore United Arab Emirates (UAE).
The contract is worth $124 million (£76 million).
This five-year contract follows a previous award from ADMA OPCO in 2011 for the provision of services for the first phase of Umm Lulu and the Nasr phase 1 project.
Under this latest contract AMEC's scope of work includes project management of the engineering, procurement and construction contractors who are delivering a large offshore super complex located in the Umm Lulu Field. The complex will comprise six bridge-linked platforms including gathering, separation, gas treatment and water disposal facilities, utilities and accommodation modules. The work is being delivered from the UAE and is expected to create 100 additional jobs for AMEC in Abu Dhabi.
"Further expansion in the Middle East is a key part of AMEC's growth strategy," said Ross Gibson, Operations Director, Gulf and North Africa. "It is good to see we are winning repeat business based on our previous performance and strength of our local capabilities."
FMC Technologies, Inc. (NYSE: FTI) announces that it has received an order from Tidewater Subsea (Tidewater) to supply a fleet of six work-class ROV systems for its subsea operations business. The ROV systems will be supplied by FMC Technologies' Schilling Robotics business unit and are expected to be delivered before the end of 2013. The contract value is approximately $30 million in revenue.
FMC Technologies will supply integrated Heavy Duty work-class ROV systems, which will be mobilized onboard Tidewater's deepwater vessels to service the global oil and gas offshore construction and Inspection, Maintenance, and Repair (IMR) markets.
"FMC Technologies is very pleased to have been awarded this contract by Tidewater," said Tore Halvorsen, FMC Technologies' Senior Vice President, Subsea Technologies. "These Heavy Duty work-class ROV systems will allow Tidewater to further expand its life of field service offering to the oil and gas market."
As a result of the agreement, MOLTECH is granted rights and responsibilities as VIKING's sole agent and distributor in Japan for the sales of VIKING's marine life-saving and fire-fighting products to Japanese shipyards and owners.
Marine and fire safety equipment leader VIKING Life-Saving Equipment (VIKING) and MOL Techno-Trade Ltd. (MOLTECH) have entered a strategic alliance and sole agency agreement, establishing MOLTECH as the exclusive agent for VIKING in Japan.
MOLTECH will be offering the full range of VIKING's safety solutions including the industry leading Shipowner Agreements (SOA) - agreements that combine global product availability and servicing with financing in fixed price structures and the convenience of VIKING's management of the service schedules. The Shipowner Agreements are planned and monitored from a single point of contact and were an industry game-changer, when first introduced back in 2009.
VIKING has already enjoyed many years of representation on the Japanese market and the role of existing distributors remains unchanged, however, under the control of MOLTECH.
"The agreement is a tremendous milestone for VIKING and will ensure that our products and solutions are widely available to shipowners and shipyards in Japan", says Henrik Uhd Christensen, CEO of VIKING Life-Saving Equipment, and continues:
"MOLTECH has demonstrated a capability to drive bottom line results by bridging interests and finding solutions that satisfy both Japanese and non-Japanese interests and different cultural dimensions. Further, being part of the MOL family of companies MOLTECH has the inherent capability to execute the business level which VIKING targets in the Japanese market. This provides us with the foundation of a dynamic and enduring relationship."
Petrobras has acquired, alone or in partnership, 49 blocks, out of the 50 to which the company presented offers, in the 12th Bidding Round held today by the Brazilian National Petroleum, Natural Gas and Biofuels Agency (ANP). Among the blocks acquired, 22 were in partnership, and 16 of them will be operated by Petrobras and 6 by partners. The value of signature bonus to be paid by Petrobras is R$ 120 million, in addition to R$ 23 million to be paid by partners. The sum of these amounts, which reaches approximately R$ 143 million, corresponds to 87% of the total bonus to be collected in the round.
In addition to the signature bonus, the Minimum Exploratory Program (MEP) to be applied on the block, expressed in units of work (UWs), and the percentage of local content in the exploration and production phases were also taken into account as judgment criteria in the bidding.
The blocks offered in the 12th Bidding Round are located in new exploratory frontiers andin mature basins. The strategy adopted by Petrobras in the bidding is aligned with the goal of the company to increase its reserves and production of natural gas in the vicinity of existing production facilities, by expanding the knowledge on Brazilian sedimentary basins and diversifying its exploration investment. The participation of Petrobras in consortiums is in line with the objective of strengthening partnerships with national and foreign companies in order to foster integration of knowledge and technologies used in the exploration and production onshore.
Among the new frontier basins, located in areas with little geologic information or technological barriers to be overcome, Petrobras has invested primarily in Paraná and Acre-Madre de Dios basins, seeking to identify new producing provinces with a focus on natural gas. In these basins, the Company has acquired 10 out of 11 blocks in which the Company submitted a proposal.
In mature basins, Petrobras purchased all 39 blocks in which it submitted a proposal. The company made offers to both basins of Sergipe-Alagoas and Recôncavo, in blocks near to production areas that can have synergies with the existing infrastructure.
DOF Subsea, a leading provider of subsea services to the oil and gas industry, has appointed Colin Ferguson (photo) as country manager for Angola.
Colin, who started his career as a commercial diver, has more than 20 years' experience working on large scale engineering projects in the upstream oil and gas industry. He joins DOF Subsea from Superior Energy Services/Hallin Marine Services, where he was country manager for Angola.
Colin brings a wealth of experience to DOF Subsea, having worked in many countries in West Africa as well as in South Africa, the Persian Gulf, India and Thailand. His previous positions have been with oil and gas companies including Mermaid Offshore Services, Global Industries Limited and Stolt Comex Seaway.
Talking about his appointment, Colin said: "I am extremely excited to join DOF Subsea and support the company as it grows business in West Africa. Having been based in the sub-Saharan region for most of my career, I have a great deal of experience working in the area which I look forward to using in this role as we develop DOF Subsea Angola Lda."
As part of his position as General Manager at DOF Subsea Angola, Colin will focus on enhancing the company's profile and business potential in Angola. Training and development for personnel and monitoring the financial and health and safety performance will also be key aspects of Colin's role.
Colin continued: "DOF Subsea operates to an exceptionally high standard across each of its global projects and I will be working to ensure that this remains the case in Angola, with all personnel working to company policies and procedures whilst receiving appropriate training and development opportunities."
Jan–Kristian Haukeland, Executive Vice President for the Atlantic Region, said: "Colin's appointment is an important move for us as we expand operations in the West African region and we are delighted to welcome him to the company.
"Building upon our existing business relationships in the area will be one of Colin's main focuses, as well as seeking out new prospects. He will also be identifying opportunities for DOF Subsea to raise its profile in West Africa through increased involvement in CSR activities and projects in the community."