Successful Transformation from an Oil Trading, Transportation and Storage Company to a Resource-based Energy Enterprise
Brightoil Petroleum (Holdings) Limited ("Brightoil Petroleum" or the "Group"; stock code: 933.HK) announced the closing of a stock purchase agreement (the "Agreement") with Anadarko China Holdings 2 Company Limited ("Anadarko China"), a wholly-owned subsidiary of Anadarko Petroleum Corporation ("Anadarko Petroleum"), to acquire a participating interest in two oil producing blocks in Bohai Bay (Contract Area 04/36 and Unit Area 05/36) at a consideration of USD
1.046 billion.
Following the signing of the agreement on 18 February, the acquisition was successfully completed on
8 August after six months of efforts put together by both parties. After the closing of the Agreement, the Group now holds a 40.09% participating interest in the 124km2 offshore block (Contract Area 04/36) and a 29.18% participating interest in the 88 km2 offshore block (Unit Area 05/36). The operator of both blocks is CNOOC China Limited ("CCL").
As a result of this, the Company's oil and natural gas resources extend from the ground to offshore, and the Company's oil and natural gas storage and production will increase immensely. Together with its originally owned Dina1 and Tuzi natural gas field, the Company's interest in 2P storage is expected to reach approximately 86 million boe. When all these three areas are in operation, Dina1 and Tuzi and Bohai will reach a daily net production of approximately 25,000 boe, and an annual net production of approximately 9 million boe. Upon this successful Closing, the Company will reach a solid step-out and broaden its activities into energy resources supply and operation.
Dr. Sit Kwong Lam, Chairman of Brightoil Petroleum, said, "We believe that the closing of the acquisition marks the successful transformation of the Group in its aim to become a resource-based energy enterprise. The Group will continue to strengthen its development in the upstream business, aiming to achieve sustainable growth of its reserves, production volume and revenue in the long run. This will accelerate the Group's development into an international integrated oil & gas conglomerate and at the same time enhance our returns to investors and create further shareholders' value. "
About Brightoil Petroleum
Brightoil Petroleum (Holdings) Limited is a resource-based energy enterprise focusing on upstream oil and gas resources exploration, along with further developments downstream. The Group is principally engaged in the Exploitation and Production of Upstream Oil and Gas Fields, Marine Transportation, Oil Storage and Terminal Facilities and International Trading and Bunkering Business.
The Group has three oil and gas field projects in its portfolio, including Dina1 Gas Field, Tuzi Gas Field and Caofeidian Field in Bohai Bay. The Company's interest in 2P storage is expected to reach approximately 86 million boe. When all these three areas are in operation, Dina1 and Tuzi and Bohai will reach a daily net production of approximately 25,000 boe, and an annual net production of approximately 9 million boe.
The Group currently operates four Aframax Oil Tankers and five VLCCs, and has a marine transportation capacity that will exceed 2 million tons.
The Group's oil storage facility on Waidiao Island in Zhoushan, with a total capacity of 3.16 million cubic meters, is under construction. The facility will be equipped with 13 berths which can accommodate vessels from 1,000 to 300,000 DWT. Meanwhile, the Group's oil storage facility on Changxing Island in Dalian, with a total capacity of 7.19 million cubic meters, is also under construction. The facility will be equipped with 13 berths to accommodate vessels from 1,000 to 300,000 DWT.
The Group is one of the largest marine bunkering service providers in China with services expanded to global ports. The Group's tradable range of products is diversified into fuel oil, crude oil, gas oil, as well as petrochemical and the related petroleum products. The annual trading and supplying volume has reached approximately 20 million tons.
The Group will continue to develop its upstream business by stretching its tentacles into the exploration, exploitation and production of oil fields with a view to becoming one of the leading resources-based energy conglomerates in the world.
The RPSEA Ultra-Deepwater (UDW) Program is proud to announce the annual Technology Conference to be held on Wednesday, September 3 through Thursday, September 4, 2014 at the Norris City Center in Houston, Texas.
The RPSEA UDW Program conducts research that targets technologies that are beneficial to offshore operators working in the Gulf of Mexico and other deepwater environments. The mission of the UDW Program is to identify and develop technologies, architectures, and methods that ensure safe and environmentally responsible exploration and production of hydrocarbons from the ultra-deepwater portion of the Outer Continental Shelf (OCS) in an economically viable (full life cycle) manner. Ultra-Deepwater is defined as water depth that is equal to or greater than 1,500 meters (~5,000 feet). The program also includes technologies applicable to formations in the OCS deeper than 15,000 subsurface.
The annual UDW Technology Conference presentations address the research results of 32 projects with topics ranging from autonomous underwater 3D laser imaging and deepwater monitoring technologies to improved cementing technologies, advanced seismic modeling; and design criteria for intervention, specialized materials, HTHP environments; as well as hurricane prediction. The projects focus on preventing safety risks and environmental protection of the marine ecosystem.
RPSEA's UDW Program aims for the integration of technologies that address the challenges of exploration for, or production of, natural gas or other petroleum resources located at ultra-deepwater depths. One of the goals of the research is to develop enabling technologies that help to lower overall cost and risks, and technologies that leapfrog over conventional strategies.
Registration includes continental breakfast, lunch buffet and breaks on both days and a reception on September 3rd following the day's presentations.
The workshop cost is $100 for RPSEA members and $500 for non-RPSEA members.
Aquatic Asia Pacific Pte Ltd, an Acteon company and a subsidiary of Aquatic Engineering & Construction Ltd, has relocated its regional headquarters. The new office suite is part of the existing operations base on the east coast of Singapore, where all Asia-based Aquatic equipment is stored and mobilized.
This move brings the local Aquatic team closer to key clients and the equipment, enabling them to oversee key processes in the operations side of the business, and offering clients a first-hand look at a vital part of the business.
Nick Dale, regional manager Asia Pacific, said, "This new office location enables us to provide a more immediate service to our clients, while benefitting from the offshore-focused services that the supply base brings. The move is a major step forward in our growth strategy, which is to offer a complete local service supported by our existing range of reel drive and tensioner rental equipment and flagship 1,500-te modular carousel system."
The new office address is:
Aquatic Asia Pacific Pte Ltd
Loyang Offshore Supply Base
25 Loyang Crescent
Mailbox No. 5046
Tops Avenue 1
Block 103 #04=03
Singapore 508988
Tel: +65 6681 5633
On Monday 28 July the topsides were lifted into place on the steel jacket on the Valemon field in the North Sea.
The Valemon topsides landed on the jacket just before 13.00. (Photo: André Osmundsen/Statoil)
Produced by Samsung Heavy Industries this is the first Statoil topsides built in South Korea.
The structure sailed from the yard on 15 June this year, and after a quick stop in Åmøyfjorden, Stavanger, last Saturday, it headed out to the field. The transportation to Norway took 40 days.
"This is a major milestone for the project, the most important milestone of course being start-up towards the end of the year," says Bjørn Laastad, vice president for Valemon field development.
The lift of the 9 750-tonne topsides took two hours, and was performed slightly earlier than initially assumed.
Thanks to good weather in the North Sea this summer, the Saipem 7000 crane vessel was available for lifting once the topsides arrived in Norway. The weather was favorable also when the crane vessel and the topsides arrived on the field.
"We had almost perfect lifting conditions," Viktor Nilsen-Nygaard, head of Valemon transportation and installation, reports from the crane vessel.
After the topsides were lifted into place, the flare boom was installed.
Precision work
The more than two-year planning period has included very thorough safety evaluations for all phases of the lifting operation. From mid-June the West Elara rig pre-drilled production wells through the jacket on the field.
The rig's derrick has been pulled in during the lifting operations. During the lift the distance between the topsides and rig was just five meters.
The well operations will resume in mid-October. According to plan three wells will be producing when the field comes on stream at the end of the year. The rig's job, however, will be far from finished. Drilling on the field is planned to continue until 2017.
Hook-up
In the months ahead commissioning work will take place on the field. Wells will be hooked up with production facilities on board, sea water pumps will be installed, and electricity, water and pipelines will be connected.
Two hours after the Valemon topsides were lifted off the transport vessel, the structure landed on its feet. (Photo: André Osmundsen/Statoil)
Valemon will be powered from Kvitebjørn, and the cable has already been laid on the seabed. So have the pipelines that will be transporting gas and condensate to Heimdal and Kvitebjørn, respectively.
"Some work remains before we are ready for start-up, but we are on track," says Laastad.
In order to accommodate everyone involved in the commissioning and hook-up work Statoil has chartered a flotel.
The project thus has bed capacity for some 400 people, which is the number expected to be offshore, at least in the most hectic period. But there is one thing that cannot be planned – and that's the weather.
"If we get much poor weather the flotel must be disconnected in periods. Poor weather also creates problems for the helicopter traffic, and may delay the commissioning work. So far, however, we have been lucky with the weather, and I hope this continues", says Laastad.
Win-win
Valemon will utilize existing installations and pipelines for gas and condensate export. The gas from Valemon will be transported through the existing pipeline from Huldra to Heimdal, which is a hub for transportation further to the gas markets in Europe.
The condensate will be piped to Kvitebjørn for stabilization, and transported from there to the Mongstad refinery near Bergen.
This is a win-win situation which reduces the costs for the Valemon development, and gives Heimdal and Kvitebjørn new tasks. At Heimdal major upgrading has taken place which significantly extends the platform's life.
Facts about the Valemon Field
- Gas and condensate field in the North Sea, between Kvitebjørn and Gullfaks South. The field is located some 160 kilometers west of Bergen.
– The recoverable reserves on the Valemon field are estimated at 192 million barrels of oil equivalent.
– When all wells have been drilled in 2017 Valemon will become a normally unmanned platform, remotely controlled from Sandsli in Bergen. This is the first Statoil-operated platform to be remotely controlled from land.
– The plan for development and operation (PUD) of the Valemon field was approved by the Ministry of Petroleum and Energy in June
2H Offshore, an Acteon company, has been appointed by Heerema Marine Contractors (HMC) to engineer hybrid risers for Total's Kaombo Block 32 project. HMC, together with consortium partner Technip, were awarded the contract for the EPCI and pre-commissioning of the SURF scope for the Kaombo development by Total.
2H Offshore has been pioneering riser analysis, design and engineering for more than 20 years and with this capability and experience, 2H will perform part of the detailed engineering of the 18 Single Top Tensioner Risers (STTRs) selected for the Kaombo development. 2H will work closely with HMC as a part of an integrated design team, with 2H responsible for the engineering of the Buoyancy Tank, Upper Riser Assembly and Lower Riser Assembly packages together with Global Analysis and Systems Engineering of the risers.
The Kaombo development, located offshore Angola in water depths extending from 1425m to 1925m, will include the Gindungo, Gengibre, Canela, Louro, Mostarda west and Caril fields tied back to two turret-moored FPSOs. The selected concept consists of a number of production loops with one insulated production riser and one non-insulated service riser per field. Water injection risers will also be required.
The project is currently in the detailed engineering stage with 2H also contracted to support HMC through the procurement, fabrication and installation phases.
Alex Rimmer, director of 2H's Woking office, said "2H is proud and excited to be engineering the risers for the largest subsea field development project in the world. This award and other recent awards confirm 2H as the leading contractor for the engineering, design and analysis of a range of production riser technologies including hybrid, steel catenary, top tensioned and flexible riser systems. With a history of working together, we look forward to engaging with HMC on this and future projects."
Northern Offshore, Ltd. (Oslo BØrs: NOF.OL) has announced that the company has finalized a 2 ½ year contract with Rosneft Oil Company, in conjunction with North Atlantic Drilling Ltd., for the provision of the jackup drilling rig Energy Endeavour.
According to the agreement, any break rights expire after 100 days, after which the contract will commence in direct continuation upon the release of the rig by the current client. The company estimates the contract value to be in excess of US$150 million, exclusive of any mobilization fees.
Gary W. Casswell, Northern Offshore's president and CEO, said "This is an exciting opportunity for the company, and we are delighted that Rosneft has selected Northern Offshore and the Energy Endeavour for this program. We look forward to working with them and achieving a safe and successful drilling campaign."
Pulse Structural Monitoring Inc., (Pulse), an Acteon company, has opened a new, purpose-built facility in Katy, Texas, that will provide modern office, production and testing facilities in an established industry hub.
The modern 740-m2 facility will support Pulse's expansion plans in the North American market, while enabling the company to maintain exceptional levels of customer service for all its integrity monitoring projects.
Staff at the new facility will be responsible for Pulse's engineering, project management and testing operations in the USA and Canada, including ongoing drilling and production riser monitoring projects in the Gulf of Mexico.
Wolfgang Ruf, vice president, Pulse Structural Monitoring, said, "The new fully integrated facility provides modern and state-of-the-art office, assembly and testing facilities with room for future growth. This prime location, close to our clients and in the extended energy corridor, will provide us with the space and utilities we need to deliver excellent customer service and develop long-term growth."
The address of the new facility is 22330 Merchants Way, Suite 190, Katy, Texas 77449, USA.
The Bureau of Safety and Environmental Enforcement (BSEE) initiated a day long unannounced drill involving Murphy Exploration and Production Company last week. The exercise tested Murphy's ability to respond to a simulated spill event in accordance with its Oil Spill Response Plan (OSRP).
The scenario simulated was a loss of well control 75 miles off the coast of Louisiana. As part of the exercise an incident command center was established in Slidell, La. and oil skimming recovery equipment was deployed aboard the Mississippi Responder from Pascagoula, Miss. Once at the designated location, testing of the skimmer was conducted along with the placement of oil containment boom arranged in a J formation. Representatives from the U.S. Coast Guard, NOAA and the Alabama Department of Environmental Management participated in the BSEE led exercise.
These exercises are conducted in accordance with 30 CFR Section 254.42(g) as authorized by the Oil Pollution Act of 1990. Following an exercise, BSEE and other participating agencies review the day's events, identify lessons learned and provide appropriate regulatory feedback to help improve operators' approved OSRPs. The first exercise was conducted by the Department of the Interior on July 25, 1989, with an offshore oil and gas operator in the Gulf of Mexico.
Recent news headlines on the LNG sector in Australia seem to be centered around its unsustainable rising costs. Woodside Petroleum had to ditch plans last year for its Browse LNG plant, which had gone way over budget at an estimated cost of US$80bn. In the interest of continuing the development, Woodside and its partners have now turned to FLNG vessels as a practicable alternative. More recently, Santos and GDF Suez have also scrapped plans to build gas plants off the Northern Territory Coast of Australia. Projects that have gone ahead have seen significantly increased costs. At approximately 80% completion, the Gorgon LNG project is now estimated to cost US$54bn – a sharp contrast to the original budget of US$37bn (46% over-budget).
In the meantime, despite Australia's LNG cost challenges, the United States is moving forward with the possibility of bringing onstream an LNG plant that would cost between US$2.2bn and US$3.7bn. Magnolia LNG in Louisiana is expected to come onstream in 2018, potentially the nation's first LNG export plant with the capability of processing 8 million metric tons per annum. This shows the feasibility of constructing similar infrastructure at that price, but outside Australia!
Australia's Woodside is, at the same time, looking to make a move overseas in search of better economics. The country stands to lose US$97 billion of potential LNG projects to East Africa and North America unless radical cost reduction is applied. Furthermore, Russia and China's $400bn gas deal could possibly undermine several of Australia's gas projects.
Australia has actively been finding ways of implementing reforms in an attempt to reduce operating costs. Even with the recent Russia-China deal, pipeline gas from Russia will only be supporting 6% of China's gas demand by 2030. China cannot avoid seeking diversity in its energy sources. New technologies and innovations, such as the much-anticipated FLNG vessels, will present themselves as potential solutions. With these cost-reducing opportunities/ challenges, it proves to be interesting how the scenario will play out for Australia, new LNG producer entrants elsewhere and the potential for new gas pipeline suppliers to China.
Survivex, a market leader in the provision of offshore survival training and safety skills courses to the global energy industry, announces Andrew Green (photo) as its new Chief Executive Officer (CEO) [August 2014], replacing former CEO George Green, who is appointed as non-executive director.
Established in 2011, Survivex has since trained over 130,000 candidates, seen employee numbers rise to 100 and has trebled its turnover in the last three years. Previously, as Managing Director, Andrew Green played a key role in establishing Survivex and building its reputation as a leading provider of survival training within the industry.
Following his appointment as CEO, the ambitious 30 year old will lead the company into its next phase of growth, with a focus on developing its portfolio of industry safety skills courses to complement its existing offshore safety training capabilities, whilst driving Global initiatives.
Speaking of his recent appointment Andrew Green, CEO Survivex said: "Survivex has become a clear leader in the provision of survival and safety training, with a reputation for the delivery of quality courses in realistic environments. We have established our world-class training facility in Aberdeen and future strategies will continue to focus on flexibility and value; meeting customer training requirements onsite at their premises, overseas or offshore.
"Our success to date is testament to our commitment to developing a vast portfolio of training courses, in response to industry demand for enhanced safety in every element of offshore operations. As the experts in what we do, Survivex is dedicated to setting standards for safety, with the extensive knowledge and expertise of our skilled staff and specialist trainers key to our continued growth."
Survivex is OPITO, STCW, HSE, CAA, RYA, HSE, FPAL, BAC, RTITB and IOSH approved. Its range of courses include: Survival (including BOISET and EBS), Fire, Forklift, Helideck Operations, Lifting Operations, Working at Height, Mobile Access, Gas detection and Confined Space.
Forum Energy Technologies, Inc. (NYSE: FET) is pleased to announce the completion of the expansion of its DYNACON facilities in Bryan, TX. The expansion effectively doubles the square footage of manufacturing space to 110,775 sq. ft. which includes larger welding and assembly shops. Additionally, a new 53,000 sq. ft. testing facility has been added as well as a new state-of-the-art environmentally controlled blast and paint booth which will speed associated processes.
The implementation of multiple shifts, coupled with the new larger facilities, has enabled a significant reduction in cycle time for new equipment builds with additional cycle time reductions on the horizon. This investment by Forum in the DYNACON facility emphasizes Forum's commitment to our customers by both reducing build time as well as increasing capacity to take on additional projects.
Since 1986 DYNACON has specialized in the design and manufacture of winches and handling systems for a wide variety of offshore applications ranging from ROV Launch and Recovery Systems (LARS), to oceanographic winches, a-frames, electro-hydraulic power units, motion- compensated cranes, and other deck equipment that is used around the globe for launch and recovery missions.
As part of the company's industry-leading new vessel build program, Crowley Maritime Corp. christened the third of four tugboats in the ocean class series
– Ocean Sky –on July 24th, in Houston.
The ceremony served to formally welcome the third dynamic positioning (DP) tugboat to the company's expanded ocean towing fleet, which has been involved in most of the major offshore oil production installations in the U.S. Gulf of Mexico over the past 16 months.
Todd Busch, senior vice president and general manager of Crowley's solutions group, opened the ceremony 
to approximately 140 guests. He was followed by a series of speakers including Joe Huley, vice president, NC Power Systems, and Bruce Greshman, vice president, Heerema Marine Contractors, a Crowley customer who spoke about the 20-year relationship the two companies have enjoyed – a relationship, he remarked was based on "mutual trust, cooperation and responsibility to achieve the same goals."
Following an introduction of the tug's crew members and a blessing of the vessel by Father Sinclair Oubre, Jennifer Legg, Crowley's assistant treasurer and vessel sponsor, broke the ceremonial bottle of champagne across the hull of the boat.
Shell, Anadarko and Chevron, all of whom have contracted the ocean class vessels for service also had representatives in attendance as did Congressman Gene Green's office and the area's port commission.
The Ocean Sky, which features DP2 technology, is part of a feature-rich, four-vessel family of tugs ideally suited to work with Crowley's new 455 series high-deck strength barges, which measure 400 feet long by 105 feet wide (121.92 meters by 32 meters). Crowley's ocean class tugs are outfitted for long-range, high-capacity ocean towing; rig moves; platform and floating production; storage and offloading (FPSO) unit tows; emergency response and firefighting.
All four of the ocean class tugboats are designed to have a minimum bollard pull of 150 metric tons and a range of approximately 12,600 nautical miles at 15 knots free running. They are outfitted with twin-screw, controllable-pitch propellers in nozzles and high lift rudders for a combination of performance and fuel economy.
"While today served as a formal ceremony to welcome this vessel to service, truth is, it has been busy tending to the needs of our offshore energy partners since its hull touched the water ready for service last year," said John Ara, vice president, Crowley. "All four of these dynamic positioning vessels along with their safe, well-trained crews have been in high demand and have performed reliably across the board for our diverse energy customers doing business in the U.S. Gulf of Mexico."
During the first ever pairing of all four ocean class tugs – Ocean Wave, Ocean Wind, Ocean Sky and Ocean Sun worked together to tow the largest offshore oil production and drilling platform of its kind ever to be built for use in the U.S. Gulf of Mexico, the 120,000 ton TLP Olympus for 425-miles from Ingleside, Texas to her final location in more than 3,000 feet of water. Later the quad towed, moored and made storm safe the Jack/St. Malo topside at a depth of 7,000 feet and are scheduled to team again for movement of Delta House floating production platform and Chevron's TLP Bigfoot in the coming months.
The fourth and last planned vessel in the series, Ocean Sun, is slated for formal christening in Lake Charles, La., during mid-August by Coreen Busch, wife of Todd Busch.
NYC-based PIRA Energy Group reports that the July stock decline at Cushing strengthens WTI. In the U.S., there was largest weekly stock draw since January. In Japan, crude runs and stocks rose. Specifically, PIRA’s analysis of the oil market fundamentals has revealed the following:
July Stock Decline at Cushing Strengthens WTI
Stock levels for crude oil at Cushing dropped below 20 million barrels last month, for the first time since 2008. With logistical constraints still in place throughout much of the Midcontinent, most crude grades weakened relative to WTI, and even the Dated Brent premium shrank. However, the LLS premium strengthened, as Gulf Coast crude stocks dropped due to higher refinery runs.
Largest Weekly Stock Draw Since January
Overall U.S. commercial oil inventories fell this past week with a large product stock decline (the first since March) and a crude inventory decline. Crude stocks have fallen for six consecutive weeks. The large product inventory decline was supported by the strongest reported demand of the year. Overall inventories are now back below last year by 1.3 million barrels, with gasoline and distillate down roughly 10 and 2 million barrels, respectively.
Japanese Crude Runs and Crude Stocks Rise
Runs continued to rise in line with declining maintenance activity. Crude imports increased and crude stocks posted a modest build. Finished product stocks rose slightly. Gasoline demand fell back but lower yield allowed for a small stock draw. Gasoil demand was higher, but stocks still built on higher yield. Refining margins remain quite weak with the gasoline crack posting another sharp decline.
A Statistical Analysis of Cushing Crude Stocks and Storage Capacity Utilization
Different expressions of Cushing fundamentals, such a percent of storage capacity utilized, can have better relationships to WTI 1st – 2nd spreads than outright Cushing stocks. Over time, the strength in the correlation between Cushing fundamentals and WTI spreads has changed. Cushing fill ratios at either extreme of the historical range drive non-linear spread behavior.
Aramco Announces Crude Price Differentials for September
Saudi Arabia's formula prices for September were just released. Prices into the U.S. were cut, against the ASCI benchmark, across the board after two straight months at record highs. Pricing into Europe and the Med against the Bwave benchmark was raised. In Asia, not surprisingly, terms were made more generous.
BULLETIN: Market Dynamics Reflecting a New Reality
There is currently a crude surplus in the Atlantic Basin which has weighed on relative prices and narrowed light-sweet crude premiums. The development of this surplus during peak season Atlantic Basin runs and North Sea maintenance has caught a market by surprise typically conditioned for tightness at this time. Many people trade off historical relationships and expect them to continue. But supply/demand changes transform markets, even though it takes time for these markets to fully absorb the new reality.
Mt Belvieu Prices Stay Strong
The U.S. LPG complex remained strong in the face of falling energy prices worldwide. Cash propane at Mt Belvieu strengthened by over 2% to 102.4¢/gal. Propane prices dipped below $1 early in the weak, falling in sympathy with oil prices. Prices have rallied since Wednesday’s stocks report, as inventory increases have been decreasing in size. The prospect of a large crop drying season is also acting as a tailwind for prices.
Ethanol Prices Plunge
U.S. ethanol prices fell sharply the week ending August 1 after the DOE’s latest supply report showed that inventories had risen to a 16-month high the prior week. As a result, ethanol manufacturing margins were slightly lower.
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.
Seattle and New Orleans offices welcome new talent
EBDG is pleased to welcome two new Marine Engineers to its team: William Summers (Bill) in its New Orleans office and Eileen Tausch in its Seattle office.
Summers is a seasoned marine professional with more than three decades experience in the offshore and oilfield industry. His varied background encompasses the development and planning of marine engineering vessel modifications and new construction vessel operations. He holds a MBA from Tulane University and a BS in Marine Engineering from the United States Merchant Marine Academy.
Tausch graduated with a BS in Naval Architecture from the University of Michigan (U‐M) and minored in Electrical Engineering. She previously worked as an intern at EBDG's Seattle office and was part of the project teams working on a multipurpose supply vessel for one of the firm's offshore clients.
The additions of Summers and Tausch bring the total number of EBDG employees to 63. This includes 17 Professional Engineers, many of whom are registered in the states of Washington, New York, North Carolina, Oregon, Alaska, Texas and Louisiana.
Saipem has been awarded new drilling contracts in Indonesia, Nigeria, the Arabian Gulf and Latin America worth approximately $850 million of which $540 million are related to offshore activity and refer to four different units of Saipem's fleet.
Saipem has signed with Eni Muara Bakau B.V. a contract for the utilization of the Scarabeo 7 which will be operating offshore Indonesia drilling a minimum of 12 wells; the project is estimated to be completed in first quarter 2017. The vessel will remain under contract with Eni until February 2018. Scarabeo 7 is a fifth generation semi-submersible drilling rig, capable of operating in water depths of up to 5,000 feet. Furthermore, in West Africa the contract for the Scarabeo 3 has been extended to March 2015. Scarabeo 3 is a second generation semi-submersible drilling rig, with capacity to operate in water depths of up to 1,500 feet.
In addition, NDC has extended the contract for the jack-up rig Perro Negro 2 for 24 months, starting from January 2015, for activities in the Arabian Gulf. In Ecuador, EP Petroamazonas has extended by 10 months the charter of the jack-up rig Ocean Spur, operated (not owned) by Saipem until the end of the first quarter of 2015. Both these jack-up are rigs capable to operate in water depths of up to 300 feet.
In relation to onshore drilling, Saipem has been awarded by different clients new contracts worth approximately $310 million, relating to 31 drilling rigs in South America: 21 in Venezuela, 7 in Peru, 2 in Colombia and one in Ecuador. The contracts have been signed under different terms, varying from three months to two years, and starting at different times during 2014.
Saipem operates in the Engineering & Construction and Drilling businesses, with a strong bias towards oil & gas-related activities in remote areas and deep-waters. Saipem is a leader in the provision of engineering, procurement, project management and construction services with distinctive capabilities in the design and execution of large-scale offshore and onshore projects, and technological competences such as gas monetization and heavy oil exploitation
*Increase in Non-OPEC production to exceed growth in Global Oil Demand in 2014, reducing call on OPEC production
Global oil demand in 2014 is forecast to increase by about 1.2 million barrels per day (mmbd) compared to 2013 levels, while non-Organization of the Petroleum Exporting Countries (OPEC) members' production will grow by approximately 1.6 mmbd, reducing the call for OPEC production, according to research and consulting firm GlobalData.
The company's report* states that a significant increase in non-OPEC production is forecast to occur, particularly in North America, where crude oil and condensate production will increase by about 1.3 mmbd.
Carmine Rositano, GlobalData's Managing Analyst covering Downstream Oil & Gas, says: "Crude oil production increases are also expected in South America, the Former Soviet Union and from the greater use of biofuels. This will more than offset slightly lower production anticipated in the North Sea and Mexico.
"The growth in US oil production of just over 1 mmbd, combined with the expansion of Canadian production, will continue to reduce imports into North America. These could then flow into Asia, where the rise in oil demand will greatly exceed the slight increase forecast in local production."
Venezuelan crudes are now more likely to end up in Asia than North America, as Asia imported just under 1 mmbd of Venezuelan crudes in 2013. This has increased tonne-mile demand in the tanker industry for Very Large Crude Carriers, while decreasing the need for shorter-haul tanker movements into North America, according to the analyst.
Rositano continues: "Crude oil supply patterns and pricing differentials, along with marine freight rates and refining margins, will continue to be impacted by North America's higher forecast production levels, especially if the current ban on exporting US crude oil remains in place.
"It will be interesting to see which OPEC member will reduce its production should Iraq's output continue to increase and when Libyan production comes back online. It also remains to be seen whether Iran's export level will increase, should it reach an agreement over the nuclear issue with the West.
This report provides a comparison of global oil demand and supply for 2014 versus 2013, detailing the increases in non-OPEC oil production and its effect on the supply of OPEC crude oil. It includes an evaluation of geopolitical risks and details of demand levels by product (gasoline, diesel/gasoil and aviation jet fuel) in both regional and global terms.
This report was built using data and information sourced from proprietary databases, primary and secondary research, and in-house analysis conducted by GlobalData's team of industry experts.
Offshore Source keeps you updated with relevant information concerning the Offshore Energy Sector.
Any views or opinions represented on this website belong solely to the author and do not represent those of the people, institutions or organizations that Offshore Source or collaborators may or may not have been associated with in a professional or personal capacity, unless explicitly stated.