Noble Energy, Helix to deploy state-of-the-art well control equipment in over 5,000 feet of water

As part of the Obama administration’s ongoing efforts to strengthen the oil and gas industry’s ability to respond in the event of a deepwater blowout and ensure that offshore oil and gas production can continue to expand safely and responsibly, Bureau of Safety and Environmental Enforcement (BSEE) Director Jim Watson has  launched an unannounced exercise to deploy critical pieces of state-of-the-art well control equipment to the ultra-deep seabed of the Gulf of Mexico.

The exercise employs Helix Well Containment Group’s capping stack system, equipment that is used to stop the flow of oil and gas in the event that a blowout preventer is ineffective, with Noble Energy serving as the designated operator.

Following the Deepwater Horizon explosion and oil spill, the Interior Department undertook the most aggressive overhaul of oil and gas safety regulations in U.S. history. Included in these reforms is the requirement that prior to receiving approval of a deepwater drilling permit, an operator must demonstrate that it has enforceable obligations that ensure that it has immediate access to surface and subsea containment resources that would be adequate to promptly respond to a blowout or other loss of well control, several components of which are being tested in the exercise initiated today.

“We fully expect operators to have the plans, equipment and capabilities in place to respond to a subsea blowout in deepwater at a moment’s notice,” Director Watson said. “These types of exercises give us an opportunity to see how the equipment is deployed in real-world conditions and to learn lessons that can be shared across the industry to protect the environment and improve the safety of offshore operations.”

During this exercise, Helix’s capping stack will be mobilized and deployed to the sea floor in 5047 feet of water, latched to a test wellhead and pressurized. The exercise is also designed to test Noble Energy’s ability to obtain and schedule the deployment of the supporting systems necessary for successful containment. The Helix capping stack is similar to the technology used to stop the flow of oil from the Deepwater Horizon well.

BSEE inspectors, engineers and spill response experts will be embedded in various locations throughout the exercise, including in the command center and on the vessel deploying the capping stack, to oversee the mobilization, deployment and associated tests of the system. BSEE experts will oversee the capping stack being lowered to the seafloor by wire, a technique that offers the potential to be significantly faster than the deployment via pipe that occurred during the Deepwater Horizon response.

Helix is one of two consortia that provide contract access to well containment equipment to oil and gas operators in the Gulf of Mexico. This equipment is required by BSEE for drilling with subsea blowout preventers in deepwater, among other situations. The other consortium, the Marine Well Containment Company, successfully completed a similar deployment exercise in July 2012.

Over the course of the exercise, BSEE will provide public updates at: http://www.bsee.gov.

The company refers to the press releases dated November 5, 2012, and February 11, 2013, which announced the transaction to integrate Seadrill Limited's ("Seadrill") tender rig division into SapuraKencana Petroleum Berhad ("SapuraKencana") and the signing of the conditional Sale and Purchase Agreement ("SPA") between the parties.

Seadrill and SapuraKencana have now completed the previously announced transaction pursuant to the conditional SPA.

The agreed upon acquisition price is for an enterprise value of US$2.9 billion, which includes cash, SapuraKencana shares, all debt in the tender rig business, and Seadrill's future capital commitments for newbuilds.

The incremental 400.8 million shares received by Seadrill today bring Seadrill's equity holding to approximately 12 percent of the outstanding shares of SapuraKencana. At today's closing share price of RMB3.18, Seadrill's total shareholding will have a gross value of approximately US$753 million.

In addition, John Fredriksen, Chairman of Seadrill Limited, is a nominee to the Board of Directors of SapuraKencana.

John Fredriksen, Chairman, President and Director of Seadrill says in a comment, "We are pleased to have completed this important transaction with our long-term partner, SapuraKencana. We look forward to support the integration of the tender rig fleet in order to facilitate a smooth and orderly transition for the customers. This transaction will free up significant financial flexibility for Seadrill, and the proceeds will as previously stated be used over time to continue to aggressively grow our modern ultra-deepwater and jack-up exposure."

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

The facility’s Deepwater capability will complement Clariant’s Deepwater Center of Excellence recently opened in Rio
de Janeiro

Clariant Oil Services announces that it’s investment in a new laboratory facility is on track for completion in Q3 2013. The facility will be in the new Clariant 

Oil and Mining Services global headquarters campus, located in The Woodlands, Texas.

“The 64000 square foot complex, including offices, laboratories, and training suite, will utilize innovative design concepts to promote a stimulating and safe work environment,” said Robin McClure, Vice President, North America Region, Clariant Oil Services. “The dynamic look and feel
of the laboratories will create an environment that will allow staff to cross-train, share strengths and fully engage in their roles supporting our customers, whether onshore, offshore shelf, or located
in deepwater.”

The new facility will have several separate laboratories with robust capabilities, including:

• · Flow Assurance

• · Deepwater

• · Integrity

• · Well Services Additives

• · Analytical Laboratory

“This equipment, housed in a state-of-the-art facility and staffed with some of the leading figures in the industry, will result in a first class service delivery for Clariant Oil Services’ clients,” said Robin, he continued “ In particular, we are pleased to be able to benefit from our company‘s experience supporting deepwater and pre-salt production in Brazil to bring these capabilities to our Gulf of Mexico customers.“ Clariant Oil Services announced the ground breaking for the new facility September 7, 2012.

Songa Offshore SE has announced the recruitment of Jan Rune Steinsland as new Executive Vice President of Songa Offshore SE. Steinsland will report to interim CEO Jens A. Wilhelmsen and work alongside CFO Geir Karlsen to strengthen the company's financial control and reporting structures.

- "As we have been quite open about, Songa is presently pursuing several different options for financing of our new Category D rigs, currently under construction by DSME in South Korea. Such work requires competent and time consuming efforts from our financial management. At the same time, we need to strengthen financial control and improve our reporting structures. Through the appointment of Jan Rune Steinsland, we will significantly strengthen our financial team whilst freeing up time and capacity for Geir Karlsen to focus on the funding side of the company", says chairman and interim CEO, Jens A Wilhelmsen.

Mr Steinsland will be based in Limassol at the company's corporate headquarter and take up his position on the 20th May 2013.

Jan Rune Steinsland has significant international industry experience and a strong track record from executive positions. From 2006, he has held the position as CFO at Ocean Rig, in period of great expansion and development, including an IPO and listing on NASDAQ. Prior to that, he was CFO at Acta Holding ASA, a position he held for six years. From 1988 to 2000, Jan Rune Steinsland had several management positions at ExxonMobil, including Financial Analyst, Financial Reporting Manager, Vice President Accounting and Audit Advisor

BP and federal and state Natural Resource Damages (NRD) Trustees have reached agreement in principle on two additional proposed early restoration projects in Louisiana that are expected to cost approximately $340 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 has been working diligently with the Trustees to develop additional projects to meet BP's commitment to early restoration. In fact, for several months now BP had an agreement in principle with the Trustees to proceed with a number of projects, including those announced today by Louisiana. The Trustees made a decision to hold such announcements until months after our agreement in principle.

“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 Louisiana,” 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.”

BP and the Trustees have now agreed to a total of four early restoration projects in Louisiana expected to cost approximately $370 million, including two projects that were approved in 2012 and are already underway. BP stepped up to make funds available, enabling restoration projects to begin before the ongoing NRD assessment is complete.

The new Louisiana projects will create a fish hatchery facility and will rebuild and restore beach, dune and marsh habitat on a number of coastal Louisiana islands.

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.

Louisiana early restoration projects announced April 30,  include:

• Louisiana Outer Coast Restoration Project will restore beach, dune and marsh habitat on Whiskey Island (Calliou Lake Headlands), Chenier Ronquille Island, the east and west lobes of Shell Island, and North Breton Island. Restoring these barrier islands will help protect Louisiana’s wetlands and slow coastal erosion. The project will create beaches, dunes and marshes; repair breaches in the shoreline; and revegetate the islands using appropriate native species. Estimated cost: $318,363,000

• Louisiana Fish Hatchery Project will build a hatchery facility for the production of three important species of recreational fish: speckled trout, red drum and southern flounder. The facility will be located on a 90-acre site and will include 3 one-half acre ponds; 14,000 square feet of building space; a reservoir and pumping station; and a youth fishing pond and kayak launch. The building space would include hatchery production as well as a lobby with educational displays, a classroom/conference room, and production touring areas for visitors. Estimated cost: $22,000,000

Projects approved in 2012 include:

• Louisiana Lake Hermitage Marsh Project will create 104 acres of marsh within the Barataria Hydrologic Basin in Plaquemines Parish. Sediment will be dredged from the Mississippi River and pumped via pipeline to the project area. This is designed to produce the desired elevation and the ability to plant native vegetation in the sediment. Base cost: $13,200,000 (final payment complete; Base cost + contingency cost: $14,400,000 (contingency cost pending)

• Louisiana Oyster Cultch Project will create productive oyster cultch areas on public oyster seed grounds in six locations across 850 acres throughout coastal Louisiana. In addition, improvements will be made to an existing oyster hatchery on Grand Isle, which will produce larvae to be released over the cultch material. Base cost: $14,874,300 (final payment complete); Base cost + contingency cost: $15,582,600 (contingency cost pending)

Saipem has contracted BMT Scientific Marine Services (BMT) a subsidiary of BMT Group Ltd,  to provide riser monitoring systems for two Free Standing Risers (FSHRs) and four Steel Lazy Wave Risers (SLWRs) for the Sapinhoá Norte and Cernambi Sul pre-salt fields offshore Brazil.

These systems will monitor the integrity of these risers by measuring strains, motions, attitude, and position of submerged portions of the riser strings. Each FSHR system will include BMT’s patent pending ROV-Serviceable Strain Sensor Assembly which allows users to service or replace individual sensors by ROV. BMT’s patented polypropylene welded attachment scheme for attaching strain sensors to submerged, insulated pipes will be employed on the SLWRs.

BMT brings valuable experience to this project having supplied five Free Standing Riser Integrity Monitoring Systems since 2007 covering a total of twelve riser towers, and two SCR monitoring Systems.  The award complements BMT’s extensive order book that includes integrity monitoring systems for three riser towers in West Africa and two in Brazil as well as for eight SCR’s in Brazil. In addition, BMT has in various stages of delivery six Marine Integrity Monitoring Systems for Floating Production Units.

WesternGeco has announced that it has begun acquisition of a major multiclient seismic survey offshore Mozambique using the ObliQ* sliding-notch broadband acquisition and imaging technique. The technique optimizes the recorded bandwidth of the seismic signal enabling more detailed imaging of the subsurface and more reliable extraction of rock properties.

“This seismic survey is optimally located to help oil and gas companies evaluate play potential offshore Mozambique,” said Carel Hooykaas, president, WesternGeco. “The ObliQ technique is expected to provide valuable high-resolution broadband imaging in this geologically complex area where recent discoveries and regional appraisals indicate significant frontier exploration potential.”

The survey is being acquired in collaboration with the National Petroleum Institute of Mozambique (INP) and is fully supported by industry prefunding. It consists of more than 31,000 km long-offset 2D data and covers the majority of the offshore territory of Mozambique where future licensing rounds are expected.

For further information about the WesternGeco Mozambique multiclient survey, visit www.slb.com/multiclient_mozambique.

Newpark Resources, Inc. (NYSE: NR)  has announced that it has been awarded two deepwater contracts.  In Brazil, the Company was awarded a two-year contract from a subsidiary of Total S.A., to provide drilling fluids and related services for a series of wells planned in the Campos Basin.  The Company was also awarded a contract by another supermajor to provide drilling fluids and related services for a series of wells to be drilled in the Black Sea.  Work under both contracts is expected to begin in the fourth quarter of 2013.

Bruce Smith, President of Newpark Drilling Fluids, stated, "These deepwater contract awards represent significant milestones in our continued penetration of the offshore market and our expanding global presence.  Partnering with these two world-class organizations on these offshore drilling campaigns further solidifies our position as a leading global provider of high-performance fluids systems and engineering."

Genel Energy has signed a drilling rig contract with Noble Corporation for its African offshore drilling program. The Noble Paul Romano deepwater, semi-submersible rig (photo) will be used to deliver a high impact drilling campaign over a 2 year period, starting in the last quarter of 2013.

The rig, which is currently undergoing a special 5 year class survey in Valletta, Malta, has a rated water depth of up to 1,800 meters and a drilling depth of approx. 7,500 meters.

AGR will be providing drilling management services.

Commenting on the secured rig contract, Dr. John Hurst, Head of Exploration for Genel, said:

'We are very pleased to have concluded the rig contract with Noble. This rig is capable of drilling all of Genel Energy’s off shore wells in the African portfolio and will be available to us for our first well in the fourth quarter. Securing the rig is an important component of our commitment to deliver an exploration drilling campaign of 5-6 high impact wells per annum, targeting over 3.3 billion boe of net unrisked prospective resources.

FMC Technologies, Inc. (NYSE: FTI) announces  that it has been awarded a two year extension to an existing contract by Island Offshore Management AS (Island Offshore) to provide Light Well Intervention (LWI) services.

The LWI services will be performed from Island Offshore's Island Constructor vessel on wells operated by BP Exploration Operating Company Ltd (BP). LWI services enable cost effective intervention operations into existing subsea wells resulting in increased recovery from mature subsea fields. The services are scheduled to be performed in 2014 and 2015.

"We are pleased to continue to support Island Offshore and their customer BP with our LWI services," said Tore Halvorsen , FMC Technologies' Senior Vice President, Subsea Technologies. "This contract illustrates the continued demand for LWI services by major operators such as BP."

Petrobras announces that it has signed a Sale and Purchase Agreement (SPA) for the sale of the 20% stake the company holds in exploratory blocks KC 49, 50, 92, 93, 94 and 138 in the US Gulf of Mexico. These blocks make up the asset known as Gila, and the operator is British Petroleum (BP).

Petrobras will receive US$ 110 million for the transaction and additional equity in an exploratory block adjacent the Tiber field, where Petrobras is already operating and has discovered reserved. This transaction is part of Petrobras' divestment program, outlined in the 2013-2017 Business & Management Plan, and is subject to third party preferential rights and approval by the U.S. Bureau of Ocean Energy Management (BOEM).

Anadarko Petroleum Corporation (NYSE: APC) today announced its Phobos-1 well in the deepwater Gulf of Mexico encountered approximately 250 net feet of high-quality oil pay in Lower Tertiary-aged reservoirs.

“Our 2013 Gulf of Mexico exploration program is off to an outstanding start, as Phobos marks our third significant deepwater success this year,” Anadarko Sr. Vice President International and Deepwater Exploration Bob Daniels said. “Phobos is our first well in the previously untested Sigsbee Escarpment area of the Gulf of Mexico and successfully tested a significant four-way structure in the Lower Tertiary. Phobos’ close proximity to our Lucius project is expected to further enhance the economics of this potential future development.”

The Phobos discovery, located in Sigsbee Escarpment block 39, was drilled to a total depth of 28,675 feet in approximately 8,500 feet of water, approximately 11 miles south of Anadarko’s Lucius discovery, which is under development. Anadarko currently is incorporating the data from the Phobos well to determine future activities.

Anadarko is the operator of the Phobos discovery with a 30-percent working interest. Other co-owners in Phobos are Plains Exploration & Production Company (NYSE: PXP) with a 50-percent working interest and Exxon Mobil Corporation (NYSE: XOM) with a 20-percent working interest. 

Deep Down, Inc. (OTCQX: DPDW) ("Deep Down"), an oilfield services company specializing in complex deepwater and ultra-deepwater oil production distribution system support services is pleased to announce the formation of Deep Down Brasil, Ltda., confirming their interest in supporting the dynamic offshore oil and gas industry in Brazil.  Deep Down Brasil will offer the full range of innovative subsea products and services currently offered by Deep Down Inc., expanding our efforts already underway in Brazil.

Ron Smith , Chief Executive Officer of Deep Down, Inc. stated, "We are very excited about the opportunities available to us in Brazil and, by forming Deep Down Brasil, have made a serious commitment to this market.  Our experience in providing technical solutions to virtually every worldwide oil and gas venue situates us well to support the ever increasing challenges in the deep waters of Brazil. Our expertise, in conjunction with local, strategic partners, will position Deep Down for long term success in this important market."

Deep Down, Inc. (OTCQX: DPDW) ("Deep Down"), an oilfield services company specializing in complex deepwater and ultra-deepwater oil production distribution system support services has announced it has received a contract from a major international controls manufacturer for the manufacture of Loose Steel Tube Flying Leads (LSFL) worth in excess of $1.7 million.  Additionally, there is an option to purchase additional distribution and installation equipment worth in excess of $2 million.  The contract 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 reaffirms the significant engineering and capital investments we have made in our core steel flying leads product line.  Customers have realized that our steel flying leads are superior to those offered by the competition with respect to quality, cost, reliability and ease of installation."

Smit Lamnalco has passed a significant milestone in Oman after celebrating 14‐years of continuous marine and offshore support services with no Lost Time Incident (LTI).

 The 5,100 day record covers support to Single Point Mooring operations 10 km off Muscat Cove for the Petroleum Development of Oman (PDO). The services, which have run since 1998, are offered by a joint venture between Smit Lamnalco and Omani partner Suhail Bahwain Group.

Pictured (left to right): Anwar Al Mukhaini, HR Manager, Bahwan Lamnalco S.A.O.C.; Mukund Rajamani, Commercial Manager Middle East and Indian Subcontinent, Smit Lamnalco; Vivek Seth, Managing Director Middle East & Indian Subcontinent Smit Lamnalco and Alex Borges, General Manager Suhail Bahwan Group.

14 years of zero LTI

 Suleiman Al‐Maany, PDO Pipeline Infrastructure and Oil Terminal Manager, said: “To reach 14 years ozero LTI is indeed a remarkable achievement.” The occasion was marked by a celebration at the Crowne Plaza Hotel in Muscat, attended by key officials from PDO, Suhail Bahwan Group and Smit Lamnalco employees including vessel crews, and other Oil & Gas and Ports industry representatives. The joint venture’s SHE‐Q Manager, Abdullah Al Maamari paid tribute to the skills demonstrated by the diving crews supporting PDO’s Single Point Mooring operations. “This record could not have been set without their outstanding efforts,” he said.

Developing local resources

 Vivek Seth, Smit Lamnalco Managing Director Middle East & Indian Subcontinent, said: “This milestone is a source of particular pride, given Smit Lamnalco’s continuous commitment to developing excellence locally to match the standards we set across our organisation. Our company is fully committed to maximizing the local content of our operations. Nearly 90% of our local employees are Omanis."

August Auction to Offer all Unleased Acreage in Western Gulf of Mexico

As part of President Obama’s all-of-the-above energy strategy to continue to expand domestic energy production, Secretary of the Interior Sally Jewell and Acting Assistant Secretary for Land and Minerals Management and Bureau of Ocean Energy Management (BOEM) Director Tommy P. Beaudreau announced  on Wednesday that Interior will offer more than 21 million acres offshore Texas for oil and gas exploration and development in a lease sale that will include all available unleased areas in the Western Gulf of Mexico Planning Area.

Proposed Lease Sale 233, scheduled to take place in New Orleans in August, will be the third offshore auction under the Administration’s Outer Continental Shelf Oil and Gas Leasing Program for 2012-2017 (Five Year Program). The sale builds on the first two auctions in the current Five Year Program – a 39-million-acre sale held in March, which attracted more than $1.2 billion in high bids and a 20- million-acre sale held last November that netted nearly $134 million.

“The Gulf of Mexico is a cornerstone of the United States’ energy portfolio,” said Secretary Jewell. “This proposed lease sale reflects President Obama’s continued commitment to safely and responsibly develop our domestic energy resources to help create jobs, foster economic opportunities and reduce America’s dependence on foreign oil.”

Domestic oil and gas production has grown each year President Obama has been in office, with domestic oil production currently higher than any time in two decades; natural gas production at its highest level ever; and renewable electricity generation from wind, solar, and geothermal sources having doubled. Combined with recent declines in oil consumption, foreign oil imports now account for less than 40 percent of the oil consumed in America – the lowest level since 1988.

Lease Sale 233 will include 3,953 blocks, covering about 21.1 million acres, located from nine to 250 miles offshore, in water depths ranging from 16 to more than 10,975 feet (5 to 3,346 meters). BOEM estimates the proposed sale could result in the production of 116 to 200 million barrels of oil and 538 to 938 billion cubic feet of natural gas.

The decision to move forward with plans for this auction follows extensive environmental analysis, public comment, and consideration of the best scientific information available. BOEM published a Final Supplemental Environmental Impact Statement to update the environmental analysis completed for proposed Lease Sale 233 and other Western and Central Gulf of Mexico lease sales scheduled under the current Five Year Program. The assessments can be found on the web at: http://www.boem.gov/Environmental-Stewardship/Environmental-Assessment/NEPA/nepaprocess.aspx.

“This proposed sale is another important step to promote responsible domestic energy production through the safe, environmentally sound exploration and development of the nation’s Outer Continental Shelf energy resources,” said Beaudreau. “We are advancing the Administration’s goal of continuing to safely increase vital oil and gas production, while encouraging diligent development and a fair return to taxpayers for these valuable public resources that belong to all Americans.”

The proposed terms of this sale include conditions to ensure both orderly resource development and protection of the human, marine and coastal environments. These include stipulations to protect biologically sensitive resources, mitigate potential adverse effects on protected species, and avoid potential conflicts associated with oil and gas development and other uses in the region.

BOEM’s proposed economic terms include the same range of incentives to encourage diligent development and ensure a fair return to taxpayers as used in previous sales, with one exception. The provision for deep gas royalty relief under the Energy Policy Act of 2005 (EPAct) will sunset on May 3, 2013, and, therefore, will not be offered. Ultra-deep gas royalty relief required under EPAct will still be available.

The terms and conditions outlined for Sale 233 in the Proposed Notice of Sale are not final. Different terms and conditions may be employed in the Final Notice of Sale, which will be published at least 30 days before the sale. All terms and conditions for Western Sale 233 are detailed in the new streamlined, more user-friendly Proposed Notice of Sale information package, which is available at: http://www.boem.gov/Sale-233/. Copies can also be requested from the Gulf of Mexico Region’s Public Information Unit at 1201 Elmwood Park Boulevard, New Orleans, LA 70123, or at 800-200-GULF (4853).

The Notice of Availability of the Proposed Notice of Sale is available today for inspection in the Federal Register at: http://www.archives.gov/federal-register/public-inspection/index.html.