Just days before European rules on offshore safety for European companies abroad enter into force, and just a few months before additional requirements for companies operating in U.S. waters take effect, the European Commissioner for Energy, Guenther Oettinger, has called for operating and drilling companies to deliver the highest standards including when operating outside of American and European regulated waters.

At the time of his visit to Washington, DC, on July 16, Commissioner Oettinger said that the path to a strong and reliable culture of offshore safety depends upon global companies operating to the highest standards. Offshore accidents around the world continue to involve American and European companies. This places the spotlight on the global companies – who have done much to improve standards since Macondo – to give leadership to safety wherever they operate, and where the U.S. and EU rules do not apply.

"Under separate arrangements coming into force this year in Europe and the U.S., national regulators will exercise additional vigilance over oil and gas companies to ensure they accelerate the advances in technology and human understanding achieved since Macondo, whilst exercising stringent control of risks of major accidents at all times," said Commissioner Oettinger.

"We call upon oil and gas companies and drilling contractors operating in European Union waters to respond to the challenge to their leadership in global safety and environmental protection. We call on them to exert their influence to see a rise in standards both rapidly and permanently, and to ensure the transparency of that achievement. Beginning without delay, we hope to see full and rigorous disclosure of safety data by all companies in the international industry associations' reports."

Commissioner Oettinger concluded: "Our colleagues in the U.S. Department of the Interior have reaffirmed the value of the long-standing cooperation between offshore regulators in Europe and the USA in securing the transparently highest levels of safety in the offshore oil and gas industry. On Thursday, I will meet with the leaders of the offshore industry in Houston, and I look forward to hearing their views on what more is to be done to reassure people everywhere that the safety lessons of Macondo – and indeed the legacy of Piper Alpha - are truly and visibly embedded wherever our companies operate."

Background

James Fisher Mimic (JFM) has partnered with Netherlands-based condition monitoring specialist Oliveira, marine control expert CSI Control Systems and fleet operator Wagenborg, to provide a Platform Shore Support interfacing system using a reliability software application installed on the dry cargo carrier MV Lauwersborg.



Platform Shore Support is a network of ship-owners, suppliers, shipyards and the Dutch government that aims to increase the operational availability and capability of commercial vessels. JFM designed and developed the program along with Oliveira, based on JFM’s Mimic condition monitoring software. The system consolidates and analyses specific condition data, identifying potential failures and recommending corrective actions. CSI Control Systems provided a cost-effective solution to interface with the existing sensors and supply the signals to the new software without interrupting current systems on board the vessel. Wagenborg chose the MV Lauwersborg to be the first vessel to receive this Shore Support project, which will run for six months as a pilot trial. During the trial the system will provide reliability data to the on-board crew, the shore technical office and to third party analysts.



An example of the potential applications of the system being piloted on the MV Lauwersborg is in the proactive management of main propulsion engine turbocharger maintenance. Each turbocharger has a full service maintenance interval of around 12,000 hours engine operation, at which point the unit needs to be removed, stripped down and inspected so that its worn parts can be replaced prior to reassembly. During this time the vessel has to be taken out of service and in order to avoid the consequent disruption and cost of unexpected failures, all parts likely to be subject to wear are typically replaced irrespective of their visible degradation or deterioration in performance. By capturing sufficient operating data to allow an accurate real-time assessment of the condition of the turbocharger leading up to its scheduled 12,000 service interval, the pilot aims to be able to assess its condition and proactively plan maintenance according to the condition of the unit. Maintenance intervals and replacement parts inventories would thus be managed to maximize vessel availability and reliability while potentially saving significant cost if implemented on a fleet-wide basis.

“We are extremely pleased to be participating in this important pilot project,” commented Martin Briddon, engineering manager at JFM. “The safe and efficient use of sea-going vessels is high on today’s agenda for ship owners and managers. The demand for reduced energy consumption and overall operating cost makes the installation and use of new technology systems such as that developed by JFM and our partners, and being piloted on the MV Lauwersborg, highly desirable.”


CSA Ocean Sciences, Inc. are currently seeking an Applications Developer and a Database Administrator for the GIS group, a Marketing Associate, and a Ph.D. Marine Biologist/Biological Oceanographer. Check out the postings on the www.csaocean.com careers page.

Black Elk Energy Offshore Operations, LLC, an independent oil & gas company, has teamed up with Bright Light Foundation to host a second special tribute sporting clay shoot called the West Delta 32 Fall Fundraiser. The event will be held on September 26th at American Shooting Centers in Houston, TX and includes a sporting clay tournament, BBQ cook-off, live auction, music, games and more. Proceeds will assist the families affected by the incident that occurred in the Gulf of Mexico on November 16, 2012.

"We are excited to work with the Bright Light Foundation for our Fall event", says John Hoffman, President and CEO of Black Elk Energy. "We held our first West Delta 32 Fundraiser in March with Oilfield Helping Hands and had a tremendous response. I am confident with the help of Bright Light this event will be another success. Please join us on September 26th in Houston to honor the victims of this tragic incident. We deeply appreciate any and all support."

"We are extremely happy to team up with Black Elk on this meaningful event", says Kirk Trascher, President of the Bright Light Foundation. "We know how important it is to assist those in need and how impactful contributions are for these families. We are honored to be a part of this event for the families of West Delta". Those interested in offering their support should visit:  http://www.brightlightfoundation.org/west_delta_clays.cfm or contact Leslie Hoffman at This email address is being protected from spambots. You need JavaScript enabled to view it.This email address is being protected from spambots. You need JavaScript enabled to view it..

Apache Corporation (NYSE, Nasdaq: APA) announces  that its Australian subsidiary has confirmed a natural gas discovery at its operated Bianchi-1 well in Retention Lease WA-49-R, located in the Carnarvon Basin offshore northwest Australia.

Bianchi-1 was drilled to a total depth of 17,717 feet (5,400 meters) subsea, and final information regarding the well is being assessed. The well encountered approximately 367 feet (112 meters) of net natural gas pay in eight reservoir zones between 15,577 and 17,530 feet subsea (4,748 to 5,343 meters).

Bianchi-1 was drilled using the Ocean America semi-submersible deepwater drilling rig, which remains on location completing wireline logging and other information-gathering operations. Bianchi-1 adds to previous Apache exploration success in this part of the Carnarvon Basin following the Zola discovery in 2011. Zola is a natural gas discovery that Apache announced in 2011, located 4 miles (6 kilometers) southwest of the Bianchi discovery. The data from these wells, along with the Apache-operated Olympus gas discovery drilled in an adjacent permit earlier this year, provides critical insights into hydrocarbon distribution in the area.

"Bianchi is an important well for Apache, providing further understanding of the development options with the greater Zola area," said Faron Thibodeaux, Managing Director of Apache in Australia.

Evaluation of these recent discoveries is at an early stage and is being undertaken to assess potential commercial opportunities," Thibodeaux said.

The Bianchi-1 is part of Apache's ongoing exploration program across the Carnarvon Basin of Western Australia. During 2013, Apache plans to invest approximately US$1.9 billion for drilling, recompletion projects, development projects, equipment upgrades, production enhancement projects and seismic acquisitions.

Apache is the operator of Bianchi-1 (30.25% holding). Other parties in the joint venture are Santos (24.75%), OMV Australia (20%), JX Nippon (15%) and Tap Oil (10%). Apache acquired the interest in the field as part of a number of acreage acquisitions completed since 2010 that increased the company's gross acreage in Australia. Currently, Apache has interests in more than 31 000 square kilometers of northwest Australian offshore acreage including exploration permits and production licenses.

Occidental Petroleum Corporation(NYSE: OXY) announces that its wholly owned subsidiary Occidental Petroleum of Qatar Ltd. (Oxy Qatar) and Qatar Petroleum have agreed on the Phase 5 Field Development Plan (FDP) of the Idd El Shargi North Dome Field (ISND), offshore Qatar. The ISND Phase 5 FDP has been prepared in close cooperation between Oxy Qatar and Qatar Petroleum as part of the continued development of ISND under the Development and Production Sharing Agreement (DPSA) between the Government of the State of Qatar and Oxy Qatar, which was entered into in July 1994. The work has already begun and will continue to sustain oil production levels at about 100,000 barrels/day through the next six years.

The ISND Phase 5 FDP includes specific activities identified from upgraded reservoir simulation models to implement and/or improve water-flooding practices in all oil producing reservoirs. During implementation of the ISND Phase 5 FDP, Qatar Petroleum and Oxy Qatar will strive to improve the ultimate recovery in all existing contract reservoirs by continuing to work closely together to further optimize long-term production and recoverable reserves.

The ISND Phase 5 FDP comprises drilling over 200 additional production, water injection and water source wells, plus the installation of associated facilities required to support the additional wells. Added facilities will include minimum facilities platforms, wellhead jackets, fluid processing equipment and pipeline debottlenecking and water source projects. In addition, pilot studies to support Produced Water Re-Injection and Enhanced Oil Recovery projects will be implemented. The development activities are expected to constitute an aggregate investment exceeding $3 billion.

Oxy Qatar, under separate contractual arrangements, also operates the Idd El Shargi South Dome Field (ISSD) and the Al Rayyan Field in Block 12, and is a partner in Dolphin Energy.

On 07/16 in Rio de Janeiro, Petrobras  signed two financing programs with the Japan Bank for International Cooperation - JBIC for the offer of two lines of credit amounting to US$ 1.5 billion. Mizuho Bank, Ltd. is the agent bank for these programs and the lines of credit will be 60% financed by JBIC and 40% by private Japanese financial institutions, which are insured by Nippon Export and Investment Insurance (NEXI).



The lines of credit are for Petrobras to purchase equipment and services from Japanese companies in Brazil and abroad, based on the memorandum of understanding signed in October 2012, when a strategic partnership between JBIC and Petrobras was established.



Petrobras and Japan Bank for International Cooperation has built up a close cooperative relationship over many years, with a number of joint operations already implemented. The two financing programs taken out represent vast funding possibilities for these entities, offering new ways of financing, and will further strengthen the relationship between the parties.


The Bureau of Safety and Environmental Enforcement (BSEE) is continuing to oversee Energy Resource Technology, LLC’s (ERT) source control efforts to stop the flow of gas and kill the well at Ship Shoal Block 225 Platform B, located approximately 74 miles offshore Louisiana, southwest of Port Fourchon, in about 146 feet of water. BSEE and Coast Guard remain on scene at a nearby platform.

Following a site safety assessment, BSEE approved the movement of pumping equipment onto Platform E, adjacent to Platform B and connected by a bridge. BSEE engineers completed final reviews and approved the source control procedures which involve pumping drilling mud into the well to stop the flow of natural gas. The wellhead and associated equipment are located approximately 70 feet above the surface of the water, where all platform work is conducted.

Coast Guard continues to provide safety management oversight as part of its active involvement in ERT operational planning. Coast Guard conducted an overflight yesterday and is ensuring that all precautions are taken to access risk and make certain that safety measures are in place to protect personnel.

As reported by ERT, there is currently a light sheen on the water, which appears to be evaporating. The well is flowing mostly water at very low pressure and ERT believes that approximately 3.6 barrels of light condensate is being discharged every 24 hours based upon the size of the sheen as reported by the BSEE and the U.S. Coast Guard.

According to ERT, the Ship Shoal 225 B-2 well is an older gas condensate well in a field developed in the 1970's that last produced mostly water in 1997 at a rate of 65 thousand cubic feet of gas per day, 9 barrels of condensate per day and 1,150 barrels of water per day at a low flowing pressure of 175 psi.

While conducting a temporary plugging operation, ERT first experienced a loss of well control on July 7, 2013. BSEE was notified of the incident and that the well had been secured. A BSEE Houma District engineer received the report of a second loss of well control event on July 8, at approximately 9:45 a.m. BSEE inspectors were on-board the platform and confirmed that the well was flowing natural gas, water, and condensate. The platform was safely evacuated and two producing wells were shut-in.

BSEE and Coast Guard continue to work closely with federal and local agencies. BSEE will conduct an investigation to determine the cause of the well control event.

The engineers of the Titan-Micoperi consortium confirm that the "parbuckling” of the Concordia can be completed by the end of summer 2013, at the beginning of September.


The Chief Commissioner for the Costa Concordia shipwreck emergency, Prefect Franco Gabrielli, at the presence of Giglio Mayor Sergio Ortelli, has met the population of the island of Giglio together with the President of the Observatory, Maria Sargentini, Costa Crociere and Titan-Micoperi to provide an update on the Costa Concordia wreck removal progress and communicate the timing of the next phases of the project.
Technical details will be presented to authorities for the needed approvals. The parbuckling will allow to check the currently submerged and, therefore, inaccessible side of the wreck, make repairs and, more generally, perform a technical assessment on the overall condition of the wreck in view of its refloating and subsequent transport.


At the end of such assessment, the timing of the following phases will be determined more accurately. Also, the parbuckling timing will not interfere with the tourist season. In the meantime, at Giglio,  technicians are positioning the last of the six subsea platforms that will ensure the safety support of the wreck after its vertical rotation.


The platform weighs about 1,000 tons, is 32 meters long and 22 meters high and is supported by 5 large pillars (over 1.5 meters in diameter) attached to the granite bottom at a depth of about 10 meters.
The installation of high strength grout bags and mattresses, required to fill the gap between the two spurs of rock on which the wreck lies, is also in progress. Two of the eleven sponsons have already been positioned, welded and attached on the emerged side of the ship and will be used during the rotation phase. Before the parbuckling another 9 sponsons will be positioned.
The sponsons, built by Fincantieri, are made of steel and have a size of 10.5 x 11.5 meters, 20 or 30 meter high. After the parbuckling, another 4 sponsons will be installed to reach the total of 15. Following the parbuckling, another 15 sponsons will be installed on the starboard side of the wreck in a symmetrical position to those on the left side. The installation of the 30 sponsons will allow the refloating of the wreck.


The Concordia wreck removal is a unique and extremely complex technical-engineering operation, a naval salvage operation like no other in history, involving the best international expertise and advanced technologies. Activities continue with about 500 workers and 30 vessels at work 24/7. Environmental protection is a priority in the removal operations.
To date, there no damage has been registered to the marine ecosystem outside the area of the construction site. In addition, on June 15, ARPA (Regional Agency for Environmental Protection of Tuscany) and ISPRA have highlighted that all samplings and analyses, conducted since January 2012, have not detected any critical issue. Even the sampling cycles carried out inside the ship are not a source of worry.

SeaBird Exploration Plc ("SeaBird") is pleased to announce that Geo Pacific has been awarded a new contract in the Caribbean. The work is estimated to 63 days duration and the contract value is about USD 12 million. Geo Pacific has just completed her current contract and will mobilize directly to the new job.

SeaBird is a global provider of marine acquisition for 2D/3D and 4D seismic data, and associated products and services to the oil and gas industry. SeaBird specializes in high quality operations within the high end of the source vessel and 2D market, as well as in the shallow/deep water 2D/3D and 4D market.

 Main focus for the company is proprietary seismic surveys (contract seismic). Main success criteria for the company are an unrelenting focus on Health, Safety, Security, Environment and Quality (HSSEQ), combined with efficient collection of high quality seismic data. All statements in this press release other than statements of historical fact are forward-looking statements and are subject to a number of risks, uncertainties and assumptions that are difficult to predict, and are based upon assumptions as to future events that may not prove accurate. These factors include SeaBird`s reliance on a cyclical industry and the utilization of the company's vessels.

Actual results may differ substantially from those expected or projected in the forward-looking statements.

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

Seadrill Limited ("Seadrill" or "the Company") has entered into turnkey contracts to build four new ultra-deepwater drillships. Two drillships will be built at the DSME yard and the other two at the Samsung yard, in South Korea. The project value price is estimated to be below US$600 million per unit (including project management, drilling and handling tools, spares, capitalized interest and operations preparations).  Delivery of the 4 units is scheduled for the second half 2015.  Seadrill has in addition received fixed priced options for delivery of two further units for delivery in the first half 2016. 

The drillships will have a hook load capability of 1,250 tons and a water depth capacity of up to 12,000 feet targeting operations in areas such as the Gulf of Mexico, Brazil and West and East Africa. Also, these units will be outfitted with seven ram configuration of the blowout preventer (BOP) stack and with storing and handling capacity for a second BOP. The units include design and equipment features, which makes them particularly attractive for development drilling. For two of the drillships, Seadrill has received options to include equipment which makes the units prepared for 20K BOP systems.

Seadrill's construction program now totals 22 units, including 9 drillships, 2 harsh environment semi-submersibles, and 11 high specification jack-ups. In addition the Company has fixed priced options for two ultra-deepwater units.

The offshore drilling market has absorbed approximately 261 new units since 2005 and the utilization of the ultra deepwater fleet has been 100% since Seadrill was established in 2005. In the same period offshore production has been estimated to be marginally down. This illustrates in very simple terms the increased complexity of the development of new oil and gas reserves. Seadrill has spent significant time and effort analyzing the future demand of the ultra deepwater drilling market.  Ultra deepwater production is estimated to increase from around 1 million barrels per day today to 5 million barrels per day over the next 6 years. In order to reach this target significant new development drilling capacity will have to be added. At the same time, the industry faces a situation where approximately 49% of the current floater fleet is older than 20 years. We have already seen a strong trend where fourth and fifth generation vessels are incapable of meeting oil companies' new requirement for safety margin and deck load capacity and are being replaced with newer units.

The Board of Seadrill is of the opinion that the current order book for 2014 - 2016 of approximately 39 units will be fully absorbed, and utilization will continue at very high levels with solid dayrates for the modern equipment.

Seadrill currently has an order backlog of approximately US$19 billion. Based on current discussions, we are confident that in the coming months we will add to this as our open 2014 capacity is likely to be fixed at attractive day rate levels.

The Edison Chouest Offshore (ECO) global family of companies, one of the industry’s largest, most diverse and dynamic marine transportation solution providers, announced plans to enlarge its sizeable fleet and expand its terminal facilities in support of its customer base.

“Reacting to customer demands, ECO continues to lead the industry by designing, building and operating new generation vessels featuring the latest available technology,” said ECO President Gary Chouest.  “We are a customer-centric company: Our main goal is to support their activities with state-of-the-art vessels, expanded terminal facilities, subsea services, fully-integrated logistics, and shorebase support wherever necessary.”

The Chouest newbuild order book contains over 40 vessels, a vast majority to be constructed at its four U.S.-affiliate shipyards:  North American Shipbuilding (Larose, LA), LaShip (Houma, LA), Gulf Ship (Gulfport, MS) and Tampa Ship (Tampa, FL), as well as its Brazilian shipyard, Navship.

INNOVATIVE NEW 312’ PSV CLASS

ECO’s worldwide fleet now approaches 250 highly specialized offshore service and support vessels.   The largest portion of the newbuild program contains 17 vessels, with options for an additional 20, in a new class of 312’ x 66’ x 26’ new generation, clean design, diesel-electric platform supply vessels (PSV). 

This class features a new hull form that was designed to maximize deadweight while significantly reducing hydrodynamic resistance, thereby improving fuel efficiency.  The result is a vessel that offers a deadweight tonnage in excess of 6,000 LT, the capacity for over 22,000 barrels of liquid mud, over 2,000 barrels of methanol, and 14,450 cubic feet of dry bulk.  Carrying the new class moniker of NA312E CD VE (Very Efficient), these vessels offer a cargo delivered to fuel used ratio that is significantly better than other PSVs operating in the Gulf of Mexico. 

These vessels provide accommodations for 51, as well as class notations for firefighting, dynamic positioning, unmanned engine room operation, special purpose ship safety, workboat habitability, and storage and discharge of recovered oil.  The vessels also comply with the new International Labour Organization (ILO) standards for vessel design and crew standards.

“ECO owns and operates the largest fleet of new generation, high deadweight capacity PSVs in the global offshore service vessel industry.  The new series of 312’ PSVs under construction represents an evolution of ECO’s proven proprietary hull designs,” said ECO’s Executive Vice President Dino Chouest.  “The 312’ class meets 100 percent of ECO’s customers’ requirements for a high deadweight ton capacity, deepwater PSV that is extremely fuel efficient.”

NEW VESSELS INCLUDE ICE CLASS, MPSV, SUBSEA, WELL STIM

The Chouest newbuild program also includes two (2) new high ice class AHTS vessels for Arctic service, currently being designed.  The vessels will mark the fifth and sixth icebreaking vessels in the ECO fleet, making Chouest the largest designer, builder, owner and operator of icebreaking vessels in the U.S. industry.

Additionally, Chouest will build four (4) subsea construction vessels, slated for service in the Gulf of Mexico market.  Features include ROVs from Chouest affiliate C-Innovation, as well as a 400 MT AHC deepwater crane. 

Additional newbuild highlights include:

Keppel FELS, a wholly-owned subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M), has secured a contract to build a jackup rig worth US$206 million from repeat customer Grupo R, a Mexican drilling company.

Scheduled for delivery in 4Q 2015, the jackup rig will be built to Keppel's proprietary KFELS B Class design. It will be added to the fleet of another four similar rigs that Keppel FELS is building for Grupo R.

With this new contract, Keppel FELS currently has on order nine KFELS B Class jackup rigs from Mexican customers.

Mr Wong Kok Seng, Managing Director (Offshore) of Keppel O&M and Managing Director of Keppel FELS, said, "We are delighted that Grupo R has chosen to build another jackup rig of the KFELS B Class design with us. It is an affirmation of their confidence in our rig designs as well as our project execution capabilities. The KFELS B Class is an industry leading jackup design with a proven track record in the Gulf of Mexico.

"With this order, there will be 65 KFELS B Class rigs in the market by 2015, of which some 13 rigs are for Mexico. We are glad to be able to support Mexico's exploration of its offshore energy reserves and look forward to providing them with on time, on budget and safe deliveries."

Mexico's President, Enrique Pena Nieto, announced in March this year that the country's proven reserves of oil and gas at the start of 2013 has risen to 13.87 billion barrels of crude-oil equivalent. PEMEX, the Mexican national oil company has stated their aim to increase production with plans to add between eight and 12 offshore platforms to its drilling fleet. In its quarterly results in February 2013, the company unveiled investment plans of US$25.3 billion for 2013, of which US$20 billion will be targeted at upstream activities.

Mr. Ramiro Garza Vargas, CEO of Grupo R said, "Mexico is aiming to boost oil production through increased E&P with PEMEX looking for a number of new high specification rigs that can optimize their operations. The addition of this premium jackup rig to the four KFELS B Class jackups we ordered earlier will enable us to meet their requirements and strengthen our position as the leading player in Mexico's drilling industry.

Super tug Fairmount Glacier has delivered rig Falcon 100 safely offshore Pointe-Noire, Congo. The rig was towed from Rio de Janeiro via the South Atlantic Ocean over a distance of over 3.400 miles.

The Falcon 100 is a 1974 build semi submersible drilling rig, owned by US based Transocean and capable to drill to a depth of 7.620 meters. The rig has a length of 79 meters long and a breadth of 66 meter.

For this job the Fairmount Glacier was mobilized from Trinidad. First the tug towed the Falcon 100 from her drilling location offshore Macae, Brazil, to offshore Rio de Janeiro. Then Fairmount Glacier assistedt he rig in anchor handling activities and loading all kind of equipment. Also the Fairmount Glacier assisted in installing a new ‘bridle’ – the connection between rig and towing line.

After arrival in Pointe Noire the Fairmount Glacier assisted in keeping the rig in position during the deployment of her anchors. Also the Fairmount Glacier took over equipment and other cargo from Falcon 100 which was discharged in the port of Pointe Noire.

 Fairmount Marine is a marine contractor for ocean towage and heavy lift transportation, headquartered in Rotterdam, theNetherlands. Fairmount’s fleet of tugs consists of five modern super tugsof 205 tons bollard pull each, especially designed for long distance towing, and a multipurpose support vessel. Fairmount Marine is part of Louis Dreyfus Armateurs Group.

Acteon has completed the acquisition of J2 Engineering Services Ltd, which is based in Aberdeen, UK.

J2 Engineering is involved in the rental, maintenance and repair of ROV manipulator arms and associated tooling and equipment. Over the past five years, the company has forged a reputation within the ROV and underwater survey industries for outstanding service quality, fast turnaround times and the ability to deliver highly reliable customized engineering solutions.

J2 Engineering’s service offering runs along very similar lines to that of well-established Acteon company Seatronics, a world leader in the provision of subsea electronic equipment to the offshore and ocean industries. Indeed, J2 Engineering and Seatronics have already collaborated successfully on a number of projects. Bringing these two companies together will benefit Acteon and enhance their combined ability to add value to customers’ operations.

The J2 Engineering team will continue to operate from its premises in Torry, Aberdeen, and will take advantage of Seatronics’ established distribution and service network covering Europe, North America, Brazil, South East Asia and the Middle East.

Acteon’s legal advisor for the J2 Engineering Services acquisition was Burness Paull & Williamsons.

Provides States Greater Flexibility in Planning

The Bureau of Safety and Environmental Enforcement (BSEE) has  posted a revised internal policy for evaluating proposals to convert obsolete, offshore oil and natural gas production platforms into artificial reefs.

The Interim Policy Document replaces a policy addendum issued by BSEE’s predecessor agency in 2009, and removes the requirement for a five-mile buffer zone between designated reefing areas and certain restrictions to reefing in place. The revised policy also provides for extensions to regulatory decommissioning deadlines for facilities that companies are actively pursuing acceptance into a state program, and it eliminates storm-toppled platforms from consideration.

“For the past several months, we have been working with our federal partners, state officials and affected stakeholders in the Gulf of Mexico region to learn about their needs and concerns regarding the inclusion of oil and gas infrastructure in the states’ artificial reef programs,” BSEE Director James A. Watson said. “This policy is reflective of the feedback we received. It provides states greater flexibility in their planning and addresses the multiple uses for these areas while ensuring the marine environment is protected.”

Federal regulations and leasing contracts require offshore oil and gas operators to permanently seal wells that are no longer producing and remove any associated infrastructure, including the production platform.

 BSEE can grant a departure from the removal requirement in a process commonly known as “rigs to reefs” provided the platform meets certain structural criteria and other federal and state requirements, and is accepted by a state into its artificial reef program. After all hazardous materials are removed, the platform structure can be dismantled and towed to a designated reefing area, or may be reefed in place under certain conditions. In each case, the state assumes the liability for the structure.

The revised policy reinforces case by case evaluation of each reefing proposal with balanced consideration of future oil and gas development, pipeline rights of way, decommissioning operations and other uses such as charter, commercial and recreational fishing, shrimping and recreational diving.