The Department of the Interior’s Bureau of Safety and Environmental Enforcement (BSEE), Noble Energy, Inc. and the Helix Well Containment Group (HWCG)  has announced the successful completion of a full-scale deployment of critical well control equipment to assess Noble Energy’s ability to respond to a potential subsea blowout in the deepwater Gulf of Mexico. BSEE Director James Watson confirmed that the HWCG capping stack deployed for the exercise met the pressurization requirements of the drill scenario, marking successful completion of the exercise.

The unannounced deployment drill, undertaken at the direction of BSEE, began April 30 to test the HWCG capping stack system – a 20-feet tall, 146,000-pound piece of equipment similar to the one that stopped the flow of oil from the Macondo well following the Deepwater Horizon explosion and oil spill in 2010. During this exercise, the capping stack was deployed in more than 5,000 feet of water in the Gulf of Mexico. Once on site, the system was lowered to a simulated well head (a pre-set parking pile) on the ocean floor, connected to the well head, and pressurized to 8,400 pounds per square inch.

“Deployment drill exercises like this one are essential to supporting President Obama’s commitment to the safe and responsible development of offshore resources,” said Director Watson. “BSEE continually works to ensure that the oil and natural gas industry is prepared and ready to respond with the most effective equipment and response systems.”

BSEE engineers, inspectors and oil spill response specialists are evaluating the deployment operations and identifying lessons learned as the bureau continues efforts to improve safety and environmental protection across the offshore oil and natural gas industry.

“The quick and effective response to a deepwater well containment incident, demonstrated during the drill, was enabled by collaborative communication and planning between the industry and regulatory agencies with a focus on solutions-based outcomes,” said John Lewis, senior vice president of Noble Energy. “BSEE, the U.S. Coast Guard, Louisiana Offshore Coordinator’s Office and Noble Energy brought unique perspectives together in a Unified Command structure to achieve a shared goal. Through excellent coordination within the Incident Command System structure that included elevating the Source Control Chief to report directly to Unified Command, the dedication of hundreds of people and activation of the HWCG rapid response system, all objectives were met.”

“HWCG’s ability to quickly and effectively respond to a call from Noble Energy and every operator in our consortium is made possible by a combination of the mutual aid agreement committed to by each consortium member and the contracts we have in place for equipment that is staffed and working in the Gulf each day,” said Roger Scheuermann, HWCG Commercial Director. “Mutual aid enables members to draw upon the collective technical expertise, assets and resources of the group in the event of an incident. Utilizing staffed and working vessels, drilling and production equipment helps ensure there is no down time for staffing or testing equipment readiness in a crisis situation. ”

In accordance with the plan, all 15 member companies were activated for this incident through the HWCG notification system.

For the safety of personnel and equipment, a Unified Command comprised of BSEE, the US Coast Guard, Louisiana Oil Spill Coordinators Office and Noble Energy decided to temporarily hold operations May 2 and 3, 2013 due to rough weather over the Gulf of Mexico. The safety of personnel remained a top priority throughout the exercise.

Since the Deepwater Horizon tragedy in 2010, BSEE has worked to implement the most aggressive and comprehensive offshore oil and gas regulatory reforms in the nation’s history. This deepwater containment drill tested one critical component of enhanced drilling safety requirements. For more information about the bureau’s efforts to improve safety and environmental protection, please visit: http://www.bsee.gov.

BP and federal and state Natural Resource Damages (NRD) Trustees have reached agreement in principle on 28 additional proposed early restoration projects in the Gulf of Mexico that are expected to cost approximately $594 million, including human use (recreational use) projects totaling approximately $197 million. The projects are part of BP's unprecedented commitment to provide up to $1 billion in early restoration funding to expedite recovery of natural resources injured as a result of the Deepwater Horizon accident.

BP and the Trustees have now agreed on a total of 38 early restoration projects expected to cost approximately $665 million, including 10 projects that were approved in 2012 and are already underway. BP stepped up to make funds available while the NRD assessment is ongoing, enabling restoration projects to begin long before they otherwise would have.

“We are extremely pleased to have reached agreement with the Trustees on the new projects, which will provide significant long-term benefits to the environment and the people of the Gulf Coast region,” said Laura Folse, BP’s Executive Vice President for Response and Environmental Restoration. “With the help of the extensive cleanup efforts, early restoration projects, and natural recovery processes, the Gulf is returning to its baseline condition, which is the condition it would be in if the accident had not occurred.”

The 28 new projects are located across Texas, Louisiana, Mississippi, Alabama and Florida, and will include ecological projects that restore habitat and resources, as well as projects that enhance recreational use of Gulf of Mexico natural resources. The Trustees will give the public an opportunity to review and comment on the projects before final approval and funding.

The ecological projects will include restoration of dune and seagrass habitats, as well as barrier islands that protect coastal areas from waves and tides, and the creation of living shorelines – made from organic materials – that protect against coastal erosion and provide habitat for wildlife.

The recreational use projects are designed to address the temporary loss of use and enjoyment of natural resources during the time when the resources were in a condition that reduced human use, including, for example, the period when some beaches and waters were closed. Although a number of the project locations were not directly injured by the accident, the projects address loss of use by providing residents and visitors with new recreational options, better access to existing natural resources and a greater opportunity to enjoy them.

The Agreement between BP and the Trustees is unique in that it makes it possible for restoration to begin at an earlier stage of the NRD process. NRD restoration projects are typically funded only after a final settlement has been reached or a final court judgment has been entered. The Agreement allows the parties to expedite projects to restore, replace or acquire the equivalent of injured natural resources in the Gulf soon after an injury is identified, reducing the time needed to achieve restoration of those resources. 

Under the Agreement, BP provides the funding and the Trustees implement the projects. Funding is provided from the $20 billion trust BP established in 2010 to pay claims, final judgments in litigation and litigation settlements, state and local response costs and claims, and natural resource damages and related costs.

In addition to the early restoration projects, to meet its commitments in the Gulf, BP has spent more than $14 billion in operational response and clean-up costs; has paid $10.7 billion to individuals, businesses and government entities for claims, settlements and other payments; and has agreed to a settlement with the Plaintiff’s Steering Committee that will resolve the substantial majority of outstanding private economic loss, property damage and medical claims. 

Tests undertaken by Parat Halvorsen on oil spill response equipment (OSR) for offshore supply vessels reveal significant deficiencies with systems using hot water coils. Norway’s leading supplier of steam-based solutions undertook a series of trials after a number of lower cost hot water coil alternatives entered the market.

Photo: The Parat Halvorsen steam coil (right) alongside a hot water coil

Kim Kristensen, Marine and Offshore, Parat Halvorsen says: “We have shown empirically that steam injection is the one viable solution proven to keep heavy oil viscous enough for easy loading and offloading.”

Any spilled oil is recovered by OSR-equipped vessels and stored in tanks until it can be delivered to recovery stations on land. The recovered oil has to be heated to maintain a sufficient viscosity for offloading. Parat Halvorsen offers a heating solution based on steam injection from a boiler onboard. It has supplied equipment to a significant number of OSVs delivered by yards including Havyard, STX Norway, Kleven and Ulstein.

To verify whether alternative hot water-based solutions work, Parat installed a compact heating coil and a steam injection nozzle in a test tank at its facilities in Flekkesfjord. Watched by representatives from shipbuilders, owners, consultants and the Norwegian Coastal Administration, the tests measured performance of both solutions in water and in heavy oil. The empirical results showed that heat transfer in heavy oil using the hot water coil was just 10% of that achieved by the same coil in water.

“The results from the tests clearly showed that using a heating coil is not a viable option,” says Mr Kristensen. “When we started the steam injection system, live temperature logging recorded the way the oil was evenly heated in a matter of minutes.

“Our advice to shipyards and owners is to exercise caution on OSR equipment selection, basing choices on correct, up-to-date information. We believe that the laws of physics are against hot water coil-based systems, particularly in cold, harsh weather conditions such as those in the North Sea.”

Companies should thoroughly evaluate equipment performance, Mr Kristensen adds, “or they may find that any price differential is more trouble than it is worth.”

Parat has developed the Parat ORO multi nozzle arrangement, which can heat the whole tank from one insertion point. Steam is supplied via the Parat MEL electrical boiler, approved for marine use by class societies including Germanischer Lloyd, Bureau Veritas, Det Norske Veritas and Lloyd’s Register. It has also patented part of the hot water circulation loop used in normal operations interconnecting heat recovery and heat consumers to ensure continuous operation. If an oil spill incident should occur, the vessel operator can bypass the boiler in the hot water loop and re-mobilise the boiler to generate steam for the ORO tank heating system.

Deep Down, Inc. (OTCQX: DPDW) ("Deep Down"), an oilfield services company specializing in complex deepwater and ultra-deepwater oil production distribution system support services announced it has received an order from a major international controls manufacturer for the manufacture and deployment of specialized short umbilical jumpers worth in excess of $1.5 million.  The order is for the first phase of a large gas project on the Northwest coast of Australia; delivery is scheduled for the fourth quarter of 2013.

Ron Smith , Chief Executive Officer of Deep Down, Inc. stated, "This award offers proof that our clients are increasingly coming to us to provide intricate and specialized connection strategies. We are confident that by working together with our clients on these specialized projects, the result will be a solution that is more reliable and much easier to install.  It is a prosperous relationship that is continuing to grow on a daily basis."

Statoil and operator ExxonMobil have decided to sanction the Julia field development in the Gulf of Mexico.

The field, located approximately 200 miles south of New Orleans, Louisiana, was discovered in 2007 and is estimated to have nearly six billion barrels of resource in place.

Jason Nye, senior vice president, Statoil U.S. Offshore

 The announcement confirms the agreement between operator Exxon Mobil Corporation and Statoil to proceed with field development, estimated to take approximately three years. The partners each own 50 percent of the field.

 Julia will be a subsea tieback to the Jack and St. Malo floating production platform, located approximately 15 miles away, which is operated by Chevron U.S.A. Inc.

Statoil also is a co-owner in the Jack and St. Malo developments, sanctioned in 2010.

"We are very pleased to move ahead with the first phase of this important development," said Jason Nye, senior vice president, Statoil U.S. Offshore. "The Julia field is a strong addition to our growing portfolio in the Gulf of Mexico. Julia has a substantial long-term production potential which is expected to be fully realized through the application of technology to unlock its full potential."

Drilling operations are planned to start in 2014, and production start-up is planned for 2016. The lifetime of the Julia field is estimated to be up to 40 years, with an initial production rate of up to 34,000 barrels of oil per day.

Facts about the Julia field

Discovered in 2007.

The total reservoir is estimated to contain nearly six billion barrels of resource in place.

Investment decision in April 2013, production start-up in 2016.

With construction underway on the first ever Oblique Icebreaker, research specialist Aker Arctic Technology  has unveiled a new version of the unique vessel type that will bring ice management and pollution control in thick first year ice to a new level.

The first ARC 100  is due delivery to the Russian Ministry of Transport in early 2014, after a collaborative build involving Kaliningrad’s OJSC Yantar and Helsinki’s Arctech yards. The resulting newbuilding is a breakthrough in asymmetric three-thruster conceptual design, which will bring new capability in terminal operations, ice management and oil spill response in freezing seas.

The 76m long vessel, with her oblique ice-breaking action is a game changer in year-round oil spill response. Additionally, a single Oblique Icebreaker cuts channels through ice for cargo ships to follow as wide as two equivalent conventional icebreakers moving ahead side by side.

Aker Arctic has followed up with a “Heavy Duty” ARC 100 HD version of the design – a 98m long and 26m across the beam vessel. The vessel will draw on 24,000 kW of engine power and 19,500 kW of propulsion power to offer 190 tonnes of bollard pull in open water. This is 2.5 x the pull offered by the ARC 100.

Planned to be classed by the Russian Maritime Register of Shipping as an Icebreaker 7, the design is based on extensive model tests at Aker Arctic, Helsinki. Tests demonstrated that the ARC 100 HD will be able to break through 1.5m thick ice when moving ahead and astern at 5 knots (2 knots through 2m thick ice). In the oblique mode, it will be able to cut a 50m wide channel through 1.5m thick ice. In broken ice, its vertical side will push ice pieces and its inclined side break ice floats.

As well as increased size, power and manoeuvrability, the ARC 100 HD adds new ice management and oil spill response functionality. Its dynamic positioning capability will mean it can ‘spin on the spot’ to widen channels. It will also be able to assist during ice field direction changes – effectively cutting ice alongside the cargo vessel exposed to unfavourable ice flows.

Aker Arctic has incorporated specific oil recovery measures. As with the ARC100 design, instead of the vulnerable rubber arm sometimes seen in oil spill response operations, the ARC 100 HD’s vertical hull side itself will act as a sweep arm up to 60m across in heavy waves. The vessel will also feature a skimmer system, including a side door, effective in-built brush skimmers/collector tanks for oil separation, recovered oil transfer pumps, and a discharge pump.

“This project is a significant milestone for icebreaker expertise, as it shows the way design and construction efforts are keeping pace with continuing demand for harder to recover energy sources”, says Mikko Niini, Managing Director of Aker Arctic Technology Inc. “With the awarding of drilling permits in the Arctic subject to increasing scrutiny, this is another example of Aker Arctic Technology’s commitment to meeting the challenges set by nature.”

Scotland's oil and gas supply chain exports rose by 8.4 percent in 2011-12, to $12.7 billion—almost double the rate of the previous year—according to the latest figures from Scottish Development International and the Scottish Council for Development and Industry (SCDI).

The new figures, which are part of the latest annual survey of international activity in the sector, were announced by Scotland's Minister of Energy, Fergus Ewing , at the Offshore Technology Conference in Houston, Texas, where the Scottish Government is hosting a delegation of over 50 Scottish companies.

According to the survey, international activity accounted for a record 47.6 percent of total sales from the sector, an increase from 31 percent over the past decade. Total oil and gas supply chain sales, which includes sales through subsidiaries, increased by 5.8 percent to reach $26.7 billion, with exports to over 100 markets across the globe.

Commenting on the new figures, Minister Ewing said:

"Scotland has established a global reputation within the oil and gas sector, and I am delighted that these latest figures show an increase in international sales, which now account for almost 50 percent of total sales.

"Scotland is leading the way in the world of oil and gas and has a clear competitive advantage in this truly global industry. There are huge opportunities open to us internationally, and we are determined to make the most of them.

"The Scottish Government recognizes the substantial contribution that the oil and gas industry makes to our economy. We are working with the industry to continue to strengthen Scotland's position as a global leader in the sector and these figures mark further growth in this important part of our economy."

North America remained the top region for exports with $4 billion of sales targeted into this region, an increase of 2.8 percent, but strongest growth was reported in the Middle East. Africa remained the second most important with a 5.9 percent increase in sales. Brazil, the United States and Australia are reported to be the new markets of greatest interest – with sales in Australia alone increasing by 9.4 percent.

The services sector is also dominant in terms of sales, seeing an increase of 10 percent from last year's survey. The types of services being exported from Scotland include project management, consultancy, construction, maintenance, resource management, software design, drilling, access solutions, catering, logistics/transport, engineering and design.

Danny Cusick , President, Americas, Scottish Development International, said:

"Growing oil and gas export levels is a key priority for Scotland, so we welcome the success demonstrated by these latest figures, particularly at a time when many regional economies have been stagnant. They show that our expertise in oil and gas remains with increasing demand across the globe, and clearly demonstrate the growing importance international markets have to play in the long-term future of the industry in Scotland.

"While other markets such as Brazil, Africa, the Middle East and Australia are increasingly becoming international priorities for Scotland, North America remains by far our top and most important region for exports.  Continued investment by oil and gas companies from the U.S. and Canada is crucial to Scotland's long-term economic growth."

Ian Armstrong regional director, Scottish Council for Development and Industry, added:

"The global nature of Scotland's oil and gas supply chain is once again illustrated by this latest set of export figures. The international expertise and success of the industry is built on outward looking and innovative companies based in the North East, Highlands & Islands and other parts of our country, who consistently proved themselves to be world leading in identifying and capitalizing upon business opportunities in  oil and gas provinces around the world. As energy expertise in Scotland continues to build across other sectors, SCDI anticipates this trend will continue to benefit Scotland for many decades to come."

BP announces  that it has agreed to sell its 60% interest in the Polvo oil field in Brazil to HRT Oil & Gas Ltda for $135m in cash. Subject to regulatory approvals, BP expects the deal to close in the second half of 2013.

“Over the past two years BP has built a significant portfolio of upstream interests in Brazil which offer long term growth potential. We are now actively engaged in exploring this new acreage,” said Guillermo Quintero, BP Brazil President. “The sale of our interest in the Polvo field is part of our ongoing global portfolio optimization as we reposition the company for long-term growth.”

BP currently has interests in fourteen exploration and production blocks in Brazil. BP purchased interests in ten exploration and production blocks – including the shallow-water Polvo field – from Devon Energy in 2011 and farmed into four deepwater blocks operated by Petrobras a year later. Earlier this year BP announced a successful flow test at its operated Itaipu discovery in the Campos basin, one of the blocks acquired from Devon.

The Polvo field is located in the southern part of Campos basin, approximately 100 kilometres off the coast of Rio de Janeiro, in water depths of around 100 metres. Commercial production started in 2007 and BP has operated the field since its acquisition from Devon. The other 40% stake in the field is owned by Maersk.

Polvo currently produces approximately 13,000 barrels of oil per day, with BP taking a 60% share.

Market-leading energy services company Proserv has won a multi-million dollar contract in Angola, underpinning the company’s fast-evolving subsea status and increasing demand for its sampling system innovations.

Proserv is to design and manufacture a subsea sampling system for BP’s PSVM field development which, with a water depth of 2,000 meters, is believed to be the deepest offshore project in Africa.

The system, which is being designed, manufactured and tested by Proserv’s dedicated teams in Aberdeen and Aberdeenshire, can go to a maximum water depth of 2,500 metres as well as interface with two and four-slot subsea manifolds. It is also fully compliant with corrosion society, NACE International, and meets the high engineering standards set by the American Petroleum Institute.

David Lamont, chief executive officer at Proserv which has won a contract to design and manufacture a subseasampling system for BP’s PSVM field in Angola.

Chief executive officer at Proserv, David Lamont, said: “This contract win represents another significant achievement for Proserv. It underpins the strong track record we are continuing to build around the world by consistently delivering robust technology systems and services for customers on time and to the highest standards including overall compliance with very stringent technical specifications.

“With an established track record spanning over 35 years in the sampling services sector, we have strengthened our capabilities and expertise through organic growth and strategic acquisitions. This has resulted in us capturing a large share of the subsea market and with the increasing demand for flow assurance and reservoir analysis, we fully intend to set the pace as the leading global player in the subsea sampling field.”

Proserv’s sampling system will interface with the subsea production system to support the monitoring of PVT properties in the production fluid as various levels of these elements can cause flow assurance issues such as scale build up.

The cylinders for the sampling system will be designed at Proserv’s specialist manufacturing center in Greenbank, Tullos, with the whole sampling system to be manufactured and assembled at the company’s Birchmoss facility in Aberdeenshire.

The contract is the second one that Proserv has undertaken for BP Angola on the PSVM development. The company previously provided two similar subsea sampling systems for Block 18 through FMC Technologies.

Proserv, which is headquartered in Westhill, Aberdeenshire, has fast emerged as a leading industry specialist in exploration & production, drilling, and infrastructure technical solutions and services to the global energy industry.

The company has experienced exceptional growth over the past 12 months particularly in the subsea services sector.

Harsher environments, life extension and more demanding regulatory and business requirements are some of the challenges the offshore industry faces. However, a complete software tool to evaluate the full range of potential hazards and associated risks has until now not been available. Safeti Offshore, just released, is a quantitative risk analysis software solution based on DNV’s more than three decades of experience within such analysis.

Safeti Offshore encapsulates DNV’s vast experience and knowledge within offshore quantitative risk analysis (QRA),contained within one all-encompassing software application to evaluate the full range of potential hazards.

 The QRA of offshore installations is a complex process and there are specific challenges resulting from congested layouts and limited separation of equipment. A spectrum of analysis methods exists, ranging from spread-sheets – with inherent validation and traceability problems – through to detailed and expensive computational fluid dynamics (CFD) simulations typically addressing specific issues rather than assessing broader risks.

“Safeti Offshore has been designed and developed specifically to support state-of-the-art, complex offshore QRA,” says DNV Software Director of Operations Risk and Reliability, Dr Nic Cavanagh.

“A methodology has been developed by experienced risk analysts to meet the requirements of international standards such as ISO 17776 and Norsok Z-013 and this has been integrated into Safeti Offshore. All credible hydrocarbon accident scenarios are considered, including fire, explosion, toxics and smoke. In addition, detailed escalation analysis is provided to model potential domino effects and evolving safety function impairment,” he says.

Typical offshore QRA risk metrics, such as potential loss of life (PLL), are summarised in a database allowing flexible reporting and charting. An interactive event tree allows navigation and drill-down on the detailed risk results. In addition, a 3D visual representation of the facility allows the key consequence and risk results to be viewed in context. In this way, Safeti Offshore can address key questions such as design layout alternatives, fire and blast protection, escape and evacuation measures and other potential risk reduction measures.

“Safeti Offshore is built upon the same software architecture as DNV Software’s world-leading onshore analysis packages, Phast and Safeti. In this way, we can leverage more than 30 years of mathematical modelling and software engineering expertise to the market with best effect,” says DNV Software Managing Director, Are Føllesdal Tjønn.

For more information about Safeti and Safeti Offshore: www.dnvsoftware.com/safetioffshore

Exploration has awarded a contract to BMT Scientific Marine Services Inc (BMT) to provide an Environmental and Facility Monitoring System (EFMS) for the Delta House semi-submersible project operating in the Gulf of Mexico.

The EFMS monitors, logs and displays data in real-time on the local environment and facility motions. It archives the data for assessing the facility’s integrity over time and interfaces with the other platform control systems. The EFMS is comprised of a computer console, topside and subsea remote sensor packages, BMT’s proprietary data acquisition system and custom HMI user display screens. BMT brings significant experience to this project, having previously provided an EFMS for LLOG’s Gulf of Mexico WhoDat semi-submersible FPU.

Subsea 7 S.A. (Oslo Børs: SUBC) announces that it has signed a contract to build a new heavy construction vessel which will be delivered in 2016.

The new vessel will be one of the most capable heavy construction vessels in Subsea 7’s fleet of over 40 ships. She will be deployed globally to meet increasing market demands for executing ever- larger and more complex projects. She will have 2,600m² deck area (for equipment carriage), a

600t Active Heave Compensated offshore crane, a 325t top tension vertical lay system and a 7,000t under-deck basket for storage of flexible pipes, umbilicals and cables. The vessel will be equipped with six main engines in two engine rooms designed to maximize performance in Dynamic Positioning Class III.

Korean company Hyundai Heavy Industries (HHI), one of the world’s largest shipbuilding companies, will build the new vessel. The main crane and the vertical lay system will be provided by Huisman.

Subsea 7 Executive Vice President Commercial Steve Wisely said: “This is another investment in our world class fleet so that we can continue to meet our clients’ demands for executing larger, more complex projects in deep and ultra-deepwater and in harsher environments.”

New research reveals the impact of post-Macondo reform

US oil and gas professionals are losing their appetite for risk and are worried about rising operating costs, as they grapple with the consequences of a tougher, post-Macondo regulatory regime, according to new research published by GL Noble Denton.
Despite the new regulations, the vast majority believe that the US will continue to be a leading investment destination, and that the changes are necessary to improve the safety and reputation of the industry, according to the report.

The findings come from a study, Reinventing Regulation: The impact of US reform on the oil and gas industry, which was undertaken on behalf of GL Noble Denton, the independent technical advisor to the oil and gas industry.
The research provides a snapshot of industry sentiment towards the issue of new regulation being introduced in the US. It is based on a survey of more than 100 senior oil and gas professionals with operations in the US, and in-depth interviews with 10 industry executives, analysts and academics.

Headline findings:

·

More than eight in 10 (85%) expect the US regulatory regime to get a lot tougher over the next two years, but only 17% disagree that the US will remain a leading investment destination 
·

More than six in 10 (61%) believe the changing regime will have ‘somewhat’ negative or ‘highly’ negative effects on their business over the next two years 
·

Almost eight in 10 (78%) believe regulatory changes will lead to greater administrative workload
·

More than eight in 10 (82%) believe compliance costs will increase and nearly six in 10 (57%) believe the changes will affect their appetite for risk taking
·

Almost half (47%) believe the new regime will increase safety in the industry 
·

Only one in 10 believe the US authorities are doing a good job of preparing the industry for the new measures
·

Almost eight in 10 (76%) said they favoured a performance or goal-orientated approach to compliance, where safety and environmental targets are clearly defined, over a more prescriptive stance. The latter is more typical in the US regulatory environment.

-

Business impact

The US government is implementing a raft of regulatory measures in the wake of the Macondo incident in 2010, with the aim of transforming the industry’s safety culture. Oil and gas operators are now required, for example, to demonstrate that they are prepared to deal with a blowout and worst-case discharge, while revising their approaches to everything from well design and workplace safety to corporate accountability.


According to GL Noble Denton’s research, operators believe the US regulatory regime will get tougher over the next two years, as new rules continue to be implemented.

One likely consequence of the changes will be a rise in mergers and acquisitions (M&A) among oil and gas operators, as growing compliance costs accelerates consolidation. Almost six in 10 (57%) US-based oil and gas professionals surveyed for the research believe that M&A will increase as only larger players will be able to afford to compete for business under the new regulatory regime.

Positive change

Despite the impact of the new regulation, many oil and gas professionals operating in the US believe the changes will help to restore confidence in the industry. Almost half (47%) of those polled said the measures will improve overall safety compared with 35% who did not (a further 18% were undecided). Some operators are already adopting these tougher rules globally, in order to gain a competitive advantage over their rivals.

While some fears remain for a slowdown in investment as a result of the reforms, this is a relatively minor concern. Exactly half of the research participants believe investment in the US is set to remain constant or increase – far greater than the 25% who think that investment will decrease.

Arthur Stoddart, GL Noble Denton’s Executive Vice President for the Americas, said: “It is inevitable that the devastating Macondo oil spill would incur a strong regulatory reaction. No government could fail to act in the wake of such an incident. The regulations being implemented in the US present new challenges for oil and gas operators in terms of rising costs and workloads, but these changes are absolutely necessary to improve safety and prevent a future oil spill.

“As the new rules continue to come into force over the next two years, the sector will need to adapt to survive in a new climate. Increasing compliance costs, burgeoning legal risks and a greater administrative workload are just some of the effects that industry professionals expect to encounter. Our research shows that smaller oil and gas companies operating in the US are most likely to feel the impact of these burdens.

“Despite these challenges, there are clear opportunities for business growth in the US, and the country remains a leading operating destination for oil and gas companies. Evidence of this is seen in the strong rise in the number of on and offshore drilling permits issued to operators over the past year, suggesting a continued and healthy appetite for investment.”

Download a complimentary copy of Reinventing Regulation from: www.gl-nobledenton.com <http://www.gl-nobledenton.com>

OilCareers.com and Expro reveal industry shift to permanent positions

OilCareers.com has released statistics suggesting that staff roles offered by employers in the Gulf of Mexico have increased almost sixteenfold in the last three years.

Statistics show that the margin between contract and staff positions, that in 2009, reflected an equal split, now reveal a shift to five times as many staff than contract roles, equating to 80% of job types currently registered on OilCareers.com.

This comes as part of a move towards longer term recruitment strategies to encourage experienced personnel to the area as highlighted by Pauline Redpath, Global Recruitment Manager at Expro, who commented: “Due to the increasing difficulties facing the sector in recruiting workers equipped with the desired skills, companies including Expro are now focussed on capturing and retaining new talent and developing them into our leaders of the future - this has meant a move away from using temporary or contract workers.

“Other factors such as the aging workforce may also have a part to play in a higher percentage of new permanent staff being recruited in trainee programmes geared at reducing the potential skills gap in the coming years.”

Vacancies most in demand in the Gulf of Mexico are shown to be; qualified designers, engineers (electrical, subsea hardware engineer, exploration reservoir, mechanical) and seismic interpreter/geoscientists. While primary skill sets of applicants are in line with these roles, it is clear that there is still a genuine need for manpower in the region and across the US.

This desire for personnel continues to grow particularly in relation to deepwater developments in the Gulf of Mexico, as well as the shale oil and gas revolution in North America. Activity in natural gas has also cemented Houston as the top location for vacancies in the US, with Texas oil production seeing a 25% increase last year in comparison with 2011 being named  the top gas producing state in 2012.

Mark Guest, managing director of OilCareers.com said: “Oil and gas majors view the on-going skills shortage as the biggest threat to the sector and it is clear that they are stepping up efforts to develop strategies that help present the energy sector as a secure, assured and affluent career path to individuals to best ensure the constant flow of skills needed to fulfil the potential of their assets.”

The natural gas revolution has led to comments that the US may be close to energy self-sufficiency by 2030 from Bob Dudley, chief executive officer for BP, with President Obama also supporting this view to independence stating that the shale gas boom has led to cleaner power and that his administration will be accelerating new oil and gas permits.

With 94% of applications in the US coming from American nationals, this attractive outlook and increased view to self sustainability is likely to mean fewer US residents pursuing the higher salaries on offer in countries such as Africa and the Middle East. It will also help to attract talent from overseas.

Mark Guest added: “Ever-increasing activity and constantly evolving technologies in the Gulf of Mexico and across the wider US is extremely promising and it has never been more important for oil and gas businesses to implement robust recruitment strategies in order to attract the talent needed to sustain their efforts.

“It is up to employers to make the oil and gas industry an attractive proposition to new entrants by highlighting the wide range of possible roles within the industry, from engineering and geosciences to project control, health and safety and drilling positions.

“Many companies already offer acclaimed graduate and apprenticeship schemes to attract young people into the industry, as well as offering training and development programmes to ensure constant development of staff in line with industry breakthroughs. However, as The Global Oil & Gas Workforce Survey: Expectations for hires and pay rates in the oil and gas industry (H1) 2013 revealed 20% of recruiters highlight the biggest training issue as the lack of skilled trainers. This suggests a specific need to attract staff between the ages of 35-55 with over five years experience, to ensure a constant flow of knowledge and support to the existing workforce.”

Reference Material:

http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/21896749

http://www.americanchemistry.com/shalegasimpact 

Wood Group Mustang is providing engineering and design services for oil & gas production facilities planned for offshore developments in seven locations around the world: the North Sea, West Africa, Brazil, Canada, Australia, Mediterranean Sea and Gulf of Mexico. These services are being provided for shallow water fixed platforms and deepwater floating facilities. The planned facilities provide the potential to add approximately 1.3 million BPD oil & gas capacity to the world energy supply. The range of services Wood Group Mustang is providing is conceptual studies, pre-front-end engineering and design (pre-FEED), FEED, detailed engineering, and follow-on work.

Additionally, Wood Group Mustang's Automation and Control Business Unit is currently providing full system integration, FEED, or consulting for eight offshore facility projects, three of which are full system integration in deepwater developments.

"Over the next 25 years, energy demand worldwide is projected to grow by about 35%. The purpose of Wood Group Mustang's work ultimately is to help increase the standard of living around the world by designing oil & gas facilities that provide reliable sources of energy.  We are pleased to partner with the world's leading energy companies to do our part in meeting energy challenges," said Steve Knowles , president of Wood Group Mustang.

Wood Group Mustang, in its 25th year, holds 16 world records for facilities installed around the world.  In addition to designing the topsides for the world's largest semi-submersible platform, offshore Australia, Wood Group Mustang has provided design engineering for over half of the 42 producing deepwater projects in the Gulf of Mexico.

Pacific Rubiales Energy Corp. (TSX: PRE; BVC: PREC; BOVESPA: PREB) has confirmed an oil discovery in the Bilby-1 exploration well, drilling on block S-M-1166, in the Santos Basin, offshore Brazil.

The Bilby-1 well was drilled as part of an agreement announced by the Company on September 18, 2012, as a minimum work commitment for five offshore blocks (S-M-1101, S-M-1102, S-M-1037, S-M-1165 and S-M-1166), where the Company holds a 35% participating interest (subject to approval by Brazil's Agência Nacional do Petróleo, Gás Natural e Biocombustíveis ("ANP")).

Two additional exploration wells have been drilled on the blocks as part of the agreement, the Kangaroo-1 well, previously announced as an Eocene light oil discovery, and the Emu-1 well which was plugged and abandoned after failing to discover hydrocarbons in economic quantities.

As announced by the operator of the blocks, Karoon Gas Australia Ltd. (ASX: KAR) (see www.karoongas.com.au), the Bilby-1 well has been drilled to a measured depth of 3,854 meters (approximately 12,645 feet).  Oil is contained within an inter-bedded sand and shale interval of late Cretaceous age, confirmed from sampling over a 200 meter (656 foot) gross section so far.  The discovery has been verified by wireline petrophysical, pressure data, fluid sampling and mudlog analysis.  The well is positioned approximately 150 meters (492 feet) down dip from the trap crest (as interpreted on seismic data).

Wireline testing of the discovery is continuing, with full results expected over the coming week.  The well will then drill ahead as planned to an expected measured depth of 4,573 meters (approximately 15,000 feet).