Oman Drydock Company (ODC), based in the Middle East's new mega city of Duqm (notes to editors 2), signaled its 'passionate and driving ambition' to catapult itself further into the region's multi billion dollar ship repair industry after completing its 200th drydocking since launching in 2011.

A ceremony was held at the shipyard, which cost $1.5bn to build, to celebrate the landmark with shipping giant Maersk whose vessel, the 4388 TEU Maersk Wisconsin, was the 200th ship to be drydocked by ODC.

ODC Chief Executive Yong Duk Park said completing 200 vessels reflected the company's growing stature as it aims to position itself as one of the best shipyards in the world.

"We are absolutely delighted to mark our 200th ship milestone with our hugely valued client Maersk," he said. "This moment is a powerful statement to the industry that ODC is now a major player in the Middle East. We have worked enormously hard to develop a robust track record working on a wide variety of ships from Very Large Crude Carriers (VLCCs) to container ships to LNG and LPG carriers to chemical carriers dredgers, RO-ROs and barges. We can now show the shipping industry we not only have world class facilities, which include our massive dry docks which can accommodate any size of vessel (see notes to editors 1), but we are developing the workforce, skills base, training and infrastructure that our customers demand. We have listened to our clients and we are offering efficient turnaround times, tremendous value, and world class workmanship. We are, of course, still seeking to grow and improve. As a result we are actively looking to recruit more sub contractors to our supply chain who can match our standards and share our vision. There are numerous tax breaks and incentives available and we encourage companies with the right background to get in touch."

Group shot of Maersk Wisconsin& ODC team

Deputy CEO Sheikh Khalil bin Ahmed Al Salmi said ODC would now redouble its worldwide campaign to raise the profile of ODC and its prime selling points.

"ODC has a passionate driving ambition to become one of the prime ship repair yards in the world and the Middle East," he said. "We know we can deliver on quality, cost and critically time. Our geographical location thrusts us into pole position for the Asia to Europe shipping route as well as the East African and Indian off shore industries. We can further slash costs and the time required for drydocking as vessels do not need to greatly deviate their course. This can save days in time, and a huge amount of money, which is such a key factor for shipping operators balancing tight budgets. Other key selling points include our unrivalled painting services and ability to deal with sludge and slops disposal (see notes to editors 1). With painting we have the perfect climate that few other yards can offer. With slops we can save up to three days sailing time as we can deal with it all here on site, there is no need to sail to another location. We intend to market all these benefits hard in the coming months and years."

Sheikh Al Salmi said the container ship market has substantial potential for ODC.

"Our focus moving forward will be to win more business from existing and new customers operating carriers, tankers and container ships," he said. "We see real potential for growth particularly in becoming a centre of excellence for the repair of container ships and LNG carriers (LNGC). As a result we will be ramping up the promotion of our services, which are among the most advanced in the world. This includes offering customers the in depth technical support we receive from our partner Daewoo Shipbuilding and Marine Engineering Company Ltd (DSME) and its subsidiary DSEC. 2014 will see DSEC forge a closer partnership with ODC to provide specialist LNGC repair technology. This will cover areas such as cargo containment systems and the supply chain of various materials such as INVAR, insulation boxes, membranes, prefabricated panels and cryogenic safety valves. Meanwhile, we are also investing in new facilities including renovating our cryogenic shop so it can cater to repairing up to four LNGCs at any one time. Our expansion into LNGC will further be strengthened by our new license to support the French engineering firm Gaztransport & Technigaz (GTT) which specialises in cargo containment systems for high-end LNG carriers. "

Elsewhere ODC is chasing down major growth opportunities in the off shore market. ODC can provide repair and conversion services to jack up drilling rigs, drill ships and FPSOs. It also offers a range of engineering, testing and trial services for offshore projects including the construction of offshore accommodation barges, offshore jackets and platforms as well as top-side modules and sub-sea pipeline manifolds.

Click here: ODC documentary movie 

CGG announces  the creation of two new business lines, GeoSoftware and GeoConsulting, within its Geology, Geophysics & Reservoir (GGR) division:

• GeoSoftware is the worldwide leader in advanced seismic reservoir characterization technology. It brings together CGG's commercial software including Jason, Hampson-Russell and TerraSpark, along with the associated sales, marketing and product services, such as training, product support and product mentoring

• GeoConsulting is a full-spectrum Geological and Geophysical consulting services organization. In addition to CGG's Seismic Reservoir Characterization services supporting its Jason and Hampson-Russell technologies, GeoConsulting offers the company's unique line of Robertson geoscience consulting services and multi-client products including a full range of geological, petroleum engineering and economic disciplines. It also contains NPA Satellite Mapping and all global training services relating to GeoConsulting.

This move consolidates and aligns CGG's expertise in a way that best reflects its customers' needs to help them achieve their E&P goals.

More specifically, through GeoSoftware, CGG will further improve its products and services to provide customers with the best understanding of their reservoirs and deliver unsurpassed expertise and workflows for optimizing decision-making. Through GeoConsulting, the company will further enhance its geological and geophysical multi-client products and reports and expand its high-end consulting services across the E&P value chain.

By bringing together this best-in-class geoscience expertise, this new organization will generate valuable synergies in development roadmaps, technology innovation and multi-client products. CGG will be able to better invest in and expand these key areas of its business, creating new and truly integrated geoscience offerings that draw on the unique knowledge of over 800 CGG professionals working in over 20 key oil and gas centers around the world.

Sophie Zurquiyah, Senior Executive Vice President, Geology, Geophysics & Reservoir (GGR), CGG, said: "Robertson, Jason, Hampson-Russell, TerraSpark and NPA Satellite Mapping are all globally respected brands that underpin CGG's reputation for excellence. Now, by creating a unified software business in GeoSoftware and adding Seismic Reservoir Characterization services to our GeoConsulting business, we have taken the logical next-step in CGG's progression as a fully integrated Geoscience group. Not only does this new organization consolidate and extend our existing businesses, it strengthens CGG's leading position in the high-tech integrated geology & geophysics and reservoir characterization market."

Offshore drilling contractor North Atlantic Drilling has agreed to purchase two next-generation GE Oil & Gas (NYSE: GE) SeaONYX^TM blowout preventer (BOP) control systems, upgrading control spreads on board NAD’s semi-submersible West Venture (left) and drill ship West Navigator. (right)

The SeaONYX BOP control system extends system availability by incorporating multiple redundancies and hot-swappable components to keep operations online. SeaONYX is built upon GE’s proven Mark VIe architecture, at work in more than 2,000 wind, hydroelectric and nuclear power installations worldwide.In addition to improved uptime performance compared to other controllers, SeaONYX is a keystone of GE’s predictive drilling management technology, which helps drillers to address issues before they occur.“Once SeaONYX is on board, the architecture is in place to incorporate a broad array of monitoring and intelligent systems that have the potential to virtually eliminate unplanned downtime,” said Chuck Chauviere, president of Drilling Systems—GE Oil & Gas. “Adding RamTel Plus provides detailed information on the ram BOP’s functionality, while the Drilling iBox can model this data to predict future performance. Armed with this data, the drilling contractor can plan condition-based maintenance at service intervals based around the drilling schedule. The predictivity that GE Oil & Gas delivers for operators means traditional break-fix maintenance can be replaced with a proactive, recommended maintenance model that has the potential to eliminate the lost drilling time that is unavoidable with the old model.”

Blowout preventers are critical pieces of drilling equipment that are used to isolate pressure in oil and gas wells during drilling or close the well entirely in an emergency. The SeaONYX BOP control system is available as an upgrade to existing GE BOP controllers and is included in all new GE Oil & Gas BOP stacks for floating drilling rigs.

In addition to improved uptime performance compared to other controllers, SeaONYX is a keystone of GE’s predictive drilling management technology, which helps drillers to address issues before they occur.

“Once SeaONYX is on board, the architecture is in place to incorporate a broad array of monitoring and intelligent systems that have the potential to virtually eliminate unplanned downtime,” said Chuck Chauviere, president of Drilling Systems—GE Oil & Gas. “Adding RamTel Plus provides detailed information on the ram BOP’s functionality, while the Drilling iBox can model this data to predict future performance. Armed with this data, the drilling contractor can plan condition-based maintenance at service intervals based around the drilling schedule. The predictivity that GE Oil & Gas delivers for operators means traditional break-fix maintenance can be replaced with a proactive, recommended maintenance model that has the potential to eliminate the lost drilling time that is unavoidable with the old model.”

Blowout preventers are critical pieces of drilling equipment that are used to isolate pressure in oil and gas wells during drilling or close the well entirely in an emergency. The SeaONYX BOP control system is available as an upgrade to existing GE BOP controllers and is included in all new GE Oil & Gas BOP stacks for floating drilling rigs.

NYC-based PIRA Energy Group reports that western Canadian and Bakken crude price differentials strengthened in January. On the week, U.S. stocks declined. In Japan, crude and product stocks also drew. Specifically, PIRA’s analysis of the oil market fundamentals has revealed the following:

Western Canadian and Bakken Crude Price Differentials Strengthened

Western Canadian and Bakken crude price differentials strengthened in January, as frigid temperatures in the North slowed production growth, and rail volume continued to rise. Cushing stocks were flat in January, but WTI moved into backwardation in anticipation of large stock draws following the recent startup of TransCanada's Gulf Coast pipeline.

Another U.S. Stock Decline

January has been remarkable with U.S. oil inventories falling over 700 MB/D or some 22 million barrels. This past week contributed 5.3 million barrels of the decline, all of which was in products since crude oil inventories built slightly

Japanese Crude and Product Stocks Draw

Total commercial stocks drew 5.9 MMBbls on the week. Crude runs rose slightly and implied crude imports eased sufficiently to draw crude stocks 2.4 MMBbls. Finished product stocks also drew with declines in kerosene, fuel oil, and a more modest draw on gasoil stocks. Gasoil demand was relatively strong at 960 MB/D. Kerosene demand was surprisingly lower, but a low yield allowed for a strong stock draw rate of 139 MB/D for the week.

Aramco Crude Price Differentials for March

Saudi Arabia's formula prices for March were recently released. Pricing adjustments for the key markers were lowered for Asian destinations on all grades of crude, other than Arab Heavy. The greatest reduction was on the lightest grades, which saw more generous terms by as much as $1.40/Bbl. European pricing differentials were raised across the board, with the greatest increase at the heavy end. Pricing for purchases destined to the U.S. were left unchanged.

U.S. Propane Remains the Market Leader

U.S. propane remains the market leader as low inventories and on-going cold weather provides price support. The economics of moving cargoes from the USGC to either Europe or Asia has turned negative. Indeed, North Sea cargoes are due to arrive in the Northeast, as some U.S. export shipments are also canceled. The redirection of propane to the mid-continent seems to have been effective in taking some of the froth out of the market.

Ethanol Prices Higher

U.S. ethanol prices increased the week ending January 31 as weather-related production problems and rail car shortages persisted. Demand was strong as the manufacture of ethanol-blended gasoline rose to a five-week high, and inventories declined.

Ethanol Output Decreases

U.S. ethanol production declined to a three-week low of 895 MB/D the week ending January 31 from 900 MB/D in the preceding week as brutally cold weather and power shortages limited output. Inventories dropped by 193 thousand barrels to 16.7 million barrels, the largest week-on-week draw since October.

The information above is part of PIRA Energy Group's weekly Energy Market Recap, which alerts readers to PIRA’s current analysis of energy markets around the world as well as the key economic and political factors driving those markets.

Recently Hydrex installed Propeller Boss Cap Fins (PBCF) on several tankers during their respective stops in Rotterdam, Ghent and Antwerp. As a result of the underwater operation, the ships will not have to wait for their next drydock visit to start benefitting from the fuel savings the PBCF's will bring them.

The Propeller Boss Cap Fins (PBCF) is a device for propeller efficiency improvement developed by Mitsui O. S. K. Lines, Ltd. The PBCF can recover energy loss of a propeller hub vortex in the propeller's backward flow. This decreases fuel consumption by 5% when operating at the same speed, or boosts speed by 2% with the same fuel consumption.

The 5% energy saving effect has been verified by world research institutes including International Towing Tank Conferences (ITTC) and by owners.
 
With the current emphasis on global environment problems, the demand for the PBCF has been continually growing and this as an energy saving device and an environment-friendly product because it realizes a 5% reduction in CO2, NOx and SOx gases emission from vessels.

On-site installation prevents a long wait for fuel saving benefits
The first operation was performed on a 183-meter tanker berthed in Ghent. After the team arrived at the vessel's location with one of the Hydrex workboats, they started the operation with a full inspection of the propeller. Next the diver/technicians cleaned the area where the spinner cone (PBCF) was to be installed. They then lowered the cone into the water and positioned it on the propeller. When this was done, grease was inserted in the space underneath the propeller cone for lubrication and the bolts were put on torque and secured with wire, finishing the replacement of the PBCF. The Hydrex team worked around the clock to finish the operation as quickly as possible.

The exact same procedure was used during the operations in Antwerp and Rotterdam. The alignment of these Propeller Boss Cap Fins was monitored on an underwater video camera on the workboat.
 
In 2012 Hydrex had already replaced two PBCF's on a 110-meter tanker in Singapore. This was the first underwater installation of a PBCF, according to the manufacturer.

Summary
By performing the operation on-site and underwater, the owners of these tankers could immediately start enjoying the fuel savings the system offers. Otherwise they would have had to wait for the next scheduled drydocking before having the PBCs's installed. This would have cost them up to two years of savings. Calculations show that they will have earned back the money of the underwater installation in about eight weeks, so the savings for the customer are enormous.

Claxton Engineering Services Ltd, an Acteon company, is launching an online promotion in which participants can win a new iPad Air™. Entrants will be asked to correctly identify three Claxton products or services through multiple choice questions. Anyone who works in the offshore industry is welcome to enter, and the products and terms featured in the questions will be recognisable to those working in jack up drilling, decommissioning and structural asset life extension. The competition will be open for entries until the end of April, 2014. Those wishing to participate can enter at www.claxtonengineering.com/ipad. The winner will be drawn at random from correct entries on 30 April, 2014 and notified via email.

No cash alternative is offered and no purchase is necessary. The competition is not open to Claxton Engineering Services Ltd or Acteon Group Ltd employees or their relatives.

PROMOTION:         Claxton Engineering Services Ltd iPad Air™ competition

CLOSING DATE:    Wednesday, 30 April, 2014

TO ENTER:              Visit www.claxtonengineering.com/ipad

About Claxton Engineering Services Ltd:

Claxton, an Acteon company, is the leading supplier of engineering and services for shallow water, jack up depth markets. The company draws on more than two decades of industry experience to provide services for well systems, structures and pipelines across the lifetime of the field – from pre-drilling to drilling, production and decommissioning. Claxton provides first-class tailored engineering and holds a large “on-call” rental inventory. Claxton’s responsive service, alongside numerous field-proven innovations, has established the company an enviable reputation. For more information, please visit www.claxtonengineering.com.

Brunei Shell Petroleum has awarded Maersk Drilling a four year contract for the jack-up rig Maersk Completer for operation offshore Brunei. The contract commences in November 2014 in direct continuation of its current contract with Brunei Shell Petroleum. The contract has options for extension up to a total of three years.

"We are very pleased to continue our cooperation with Brunei Shell Petroleum in Brunei. We see this contract as a recognition of our solid drilling performance and as a further strengthening of our relationship with Brunei Shell Petroleum," says Claus V. Hemmingsen, CEO of Maersk Drilling and member of the Executive Board of the A.P. Moller – Maersk Group.

While operating for Brunei Shell Petroleum, Maersk Completer has shown an excellent performance record, recognised by the award as Shell Jack Up of the Year in 2012 and 2013.
Maersk Completer is one of two Baker Marine 375ft jack-up rigs in Maersk Drilling's fleet. Maersk Completer has been operating in Brunei since it was delivered from Jurong Shipyard in 2007, and since November 2008, Maersk Completer has been operating for Brunei Shell Petroleum (BSP).

National private equity firm Lariat Partners has announced the formation of Ecoserv. By merging Houston-based Newpark Environmental Services, LLC (NES), the region's leader in offshore waste disposal, with Offshore Cleaning Systems, LLC (OCS), the Gulf of Mexico's leader in offshore cleaning services, Ecoserv will become a one-of-a-kind, integrated, turnkey environmental cleaning and waste disposal services provider.

Kenny DesOrmeaux, founder and CEO of Abbeville, LA based OCS, will become CEO of Ecoserv, which will be headquartered in Lafayette, LA and operate out of fourteen (14) locations throughout the Gulf Coast and Permian Basin of West Texas. "Ecoserv uses applied science to provide the safest and most environmentally friendly way of managing oilfield refuse. By combining the efforts of these two industry innovators, we have the scale, breadth, and capabilities to offer a streamlined and hyper-compliant waste disposal system," DesOrmeaux said. "We're pioneering a solution that includes EPA-approved processes but takes them a step further."

Lariat Managing Partner Kevin Mitchell says, "With its vertically integrated business model, Ecoserv will create the most compelling value proposition in the upstream oil and gas industry." Mitchell continued, "Lariat's strategy for all of its investments is to enhance value for our customers, and the formation of Ecoserv accomplishes that in every way."

A definitive purchase agreement has been signed for the merger between NES and OCS, with the full deal expected to be executed within thirty (30) days. The formation of Ecoserv is anticipated to create as many as 100 new jobs in Acadiana. "We believe the talented employees and management of both OCS and NES create a truly best-in-class company. We look forward to demonstrating to our customers the service and value of Ecoserv," DesOrmeaux said

NYC-based PIRA Energy Group Reports that Asian oil fundamentals remained largely positive. On the week, U.S. commercial oil stocks increased and Japanese crude stocks built, but finished products drew. Specifically, PIRA’s analysis of the oil market fundamentals has revealed the following:

Asian Oil Fundamentals Remain Largely Positive

Oil prices will come under the increasing influence of global crude stock building as refinery maintenance takes hold. Asian gasoline cracks should improve seasonally and some further minor gains are forecast. Naphtha cracks have begun to ease and should decline further. Gasoil cracks have held relatively firm, but lower demand should allow room for some easing, though turnarounds will limit erosion. Fuel oil cracks have improved with lower Asian stock levels being seen in January.

U.S. Commercial Stocks Increase

Overall U.S. oil commercial inventories increased the week ending February 7^th as crude stocks built and product inventories drew. The product inventory declined week-on-week and the decline was smaller than the prior week, largely due to a fall off in reported demand, while higher product output was offset by lower product imports.

Japanese Crude Stocks Build, but Finished Products Draw

In Japan, total commercial oil stocks were modestly higher with a build in crude outpacing a draw in finished products. Runs moved modestly higher as did the implied crude import rate, which led to the crude stock build. Gasoline demand was higher, perhaps influenced by the holiday, but exports fell back and stocks built slightly. Gasoil demand was lower, but held up rather well considering the holiday

EPA Issues Guidance for Fracking Using Diesel, With Little Likely Impact on Production

Final Permitting Guidance for Oil and Gas Hydraulic Fracturing Activities Using Diesel Fuels, was released on February 11th — more than a year later than initially expected. While PIRA believes implementation of the guidance will have limited direct impact on operations, their issuance provides additional insight into the Administration's approach to fracking — confirming their desire to have EPA engaged in the regulatory process while not imposing any serious obstacles to growth in production.

Crude Tanker Markets to Start 2014 Strong

Crude tanker markets are off to a strong start in 2014 with the Baltic Dirty Tanker Index doubling in mid-January from the end of November 2013 to its highest level since 2008. The improvement was driven by an exceptionally strong winter rally in Atlantic Basin Aframax trades. Clean tanker trades however, did not participate in the rally.

U.S. Market Moves Closer to Equilibrium

The extraordinary efforts undertaken to move propane from the USGC to the Midwest and East Coast have had the desired effect of easing the spread between Mt. Belvieu and Conway prices. The warming for the next week will certainly further help ease conditions as has price induced demand losses. Nevertheless, propane stocks will end the heating season at a quite low level.

Ethanol Production Rises W/W

U.S. ethanol output rose to a three-week high of 902 MB/D the week ending February 7^th from 895 MB/D during the preceding week despite soaring natural gas prices and rail car shortages. Inventories increased by 323 thousand barrels to 17.1 million barrels, the highest since July.

The information above is part of PIRA Energy Group's weekly Energy Market Recap, which alerts readers to PIRA’s current analysis of energy markets around the world as well as the key economic and political factors driving those markets.

Artificial Lift Company has moved its headquarters to Houston from Great Yarmouth, United Kingdom, Artificial Lift President and Chief Executive Officer David Malone announced.

Situated in the Westchase District near the Energy Corridor, the company's offices and warehouse total 28,000 square feet with 40 employees based at the location. While supporting global operations, its headquarters consist of engineering, manufacturing, operations and general support services.

Artificial Lift Company employees recognize the company's first shipment from its new Houston headquarters.

"As clients recognize the huge cost savings and increased production rates achieved with our unique, rigless ESP deployment system, we find it necessary to increase our engineering, operations and manufacturing capabilities," said Malone. "Our new headquarters provides access to a strong supply base, the required technical expertise and the ability to work more closely with our customers in the expansion of this new technology. Artificial Lift has made a large investment in new testing capabilities and manufacturing capacity, and our presence in Houston positions us to address the growing demand for our systems."

Seatronics Inc., an Acteon company, is moving to a new, purpose-built facility in Houston to expand its rental, sales and service work for customers throughout North and Central America.

The new plant, at 1319 West Sam Houston Parkway North, Suite 150, contains service facilities for cable moulding, connector assembly production and injection polyurethane moulding; along with a state-of-the-art calibration laboratory, an electrical and electronic repair centre and capabilities for gyro calibrations, inertial navigation and Doppler velocity log special services. It will also have an acoustic test tank and a current meter test tank. The facility has 15,000 square feet of floor space, which provides scope for expansion in all departments.

Mark Teles, Seatronics vice president for the U.S., said, “This move is about expanding services and capabilities and establishing a base for increased rental, sales and engineering activities across the Americas. More storage and state-of-the art calibration laboratories, testing bays and cable moulding facilities will mean quicker and more efficient operations, which will benefit existing clients and provide an opportunity for us to broaden our client base. We will be better positioned to take on additional agencies, develop joint ventures and partnerships and promote and support new technologies in new markets.”

David Currie, managing director, Seatronics, said, “Seatronics Inc. has seen exponential business growth across the region and is building on that success. We already have the largest rental fleet of subsea electronics and, I believe, deliver the most professional service of any rental company in the Americas. We offer 24/7 technical support and training on electronic products. This new facility sends a clear message: Seatronics Inc. is growing fast and is ready to move into a larger business arena.”

A grand opening will be held for the new office on Thursday, Feb. 27, 2014. Seatronics will be presented with a DNV plaque to mark the company’s new ISO certification.

Diamond Offshore Drilling, Inc. (NYSE: DO) today appointed Marc Edwards as President and Chief Executive Officer and as a member of the Board of Directors, effective March 3, 2014. Mr. Edwards succeeds Lawrence Dickerson, who announced his intent to retire in September 2013 after almost 30 years of continuous service to the Company.

"We are very pleased to have a proven leader with Marc's experience taking the helm at Diamond Offshore," said James S. Tisch, Chairman of the Diamond Offshore Board of Directors. "Marc's broad experience during his 30 year career at Halliburton will be invaluable for continuing Diamond Offshore's operational excellence and charting the Company's future strategic course."

"I am honored by the opportunity to lead Diamond Offshore," said Mr. Edwards. "Diamond has an unparalleled history of value creation and superior service. I look forward to working with Diamond's leadership team, employees and customers worldwide to expand on Diamond's proud legacy."

Prior to joining Diamond Offshore, Mr. Edwards spent almost his entire career at Halliburton Company, one of the world's largest and most diversified oil field services companies. Starting as a field engineer in Kuwait in 1984, his career took him across the globe with progressively greater management responsibilities; as a member of Halliburton's Executive Committee, he most recently served as Senior Vice President, responsible for the Completion and Production Division, the largest of Halliburton's two Divisions.

Oceaneering International, Inc. (NYSE: OII) has reported record fourth quarter and annual earnings for the periods ended December 31, 2013.

For the fourth quarter of 2013, Oceaneering earned net income of $93.4 million, or $0.86 per share, on revenue of $894.8 million. During the corresponding period in 2012, net income was $80.6 million, or $0.74 per share, on revenue of $780.9 million. For the year 2013, Oceaneering reported net income of $371.5 million, or $3.42 per share, on revenue of $3.3 billion. For the year 2012, net income was $289.0 million, or $2.66 per share, on revenue of $2.8 billion.

Fourth quarter 2013 results included a $3.3 million charge to establish an allowance for doubtful accounts related to Remotely Operated Vehicles (ROV) receivables from OGX Petróleo e Gás S.A., which initiated a court-supervised restructuring under Brazilian bankruptcy law during the period. This charge was recorded as an ROV selling, general and administrative expense.

Quarterly EPS increased year over year due to profit improvements by all oilfield business operations, led by ROV and Subsea Products. Subsea Products achieved record quarterly operating income.

Annual EPS increased as all operating segments attained higher income. Four of five segments achieved record operating income. Although not a record, Subsea Projects operating income increased by 48%. Overall operating margin was the second highest in Oceaneering's history.

M. Kevin McEvoy, President and Chief Executive Officer, stated, "Results for the fourth quarter and the year were exemplary as we achieved record EPS in each period. Our ability to produce these exceptional results is largely attributable to our global focus on deepwater and subsea completion activity, the business expansion strategy we have in place, and our solid operational execution.

"We achieved record ROV operating income for the tenth consecutive year on higher global demand to provide drill support and vessel-based services and the expansion of our fleet. We increased our days on hire by more than 9,000, to over 91,000 days for the year. Our fleet utilization rose to 85% from 80% in 2012. During 2013 we put 26 new ROVs into service, retired 10, and transferred 1 system to Advanced Technologies for non-oilfield use. At year end, we had 304 vehicles in our ROV fleet.

BMT Group Ltd, a leading international design, engineering and risk management consultancy, has announced that Mr Jan Kopernicki (photo) has joined the Board of Directors as a non-executive Director.

Jan has extensive experience in the shipping industry, with his career at Shell spanning over 40 years. As Head of Shipping until his retirement in 2011, his global team was responsible for Shell's portfolio of oil tanker, LPG and LNG vessels and for advising on safety and environmental aspects of shipping. He also served as a member of the Shell Trading Executive Committee and Group Executive Sponsor for shipyard procurement.

He was appointed CMG (Companion of the Order of St Michael and St George) in the 2012 New Year's Honours list for his services to the safety and security of the international shipping community, recognising his role as President of the UK Chamber of Shipping, Chairmanship of the Oil Companies International Marine Forum (OCIMF) and contribution to combatting the threat of international piracy.

Jan is a non-executive Director of J & J Denholm Ltd, Nordic Tankers Holding AB, and the UK Chamber of Shipping. A Leicester University graduate and Fellow of the Society of Biology, he has been active in a number of roles, including Chairman of Maritime UK, Co-Chair of the UK Shipping Defence Advisory Committee, Trustee of the Lloyds Register Foundation and a member of the British Airways International Business Advisory Board. He is an Honorary Captain in the Royal Naval Reserve and President of the Shell Pensioners Association.

Commenting upon his appointment, Jan said: "I am very pleased to be joining such an exciting, innovative and international group, rooted as it is in scientific excellence. I look forward to supporting the continued success of the company and its people."

Dr Neil Cross, Chairman of BMT Group, says: "I am delighted to welcome Jan to the BMT Board. His breadth and depth of industry knowledge and experience will be invaluable to the company as we focus on continued growth and development."

For several years we have been voicing our concerns over a tide of issues facing the oil majors; firstly it seems that their oil production has peaked, then one year ago we noted that the spiraling capital expenditure was unsustainable – some will remember that the likelihood of 'Capex Compression' was the subject of our first 'DW Monday'. And it is now happening. Hess's 2014 spend is to be 30% lower than that of two years earlier, Shell is reducing by 20% compared to 2013, BG's is also set to fall and BP's Bob Dudley has stressed the importance of "capital discipline".

The upstream spend of the publicly listed international oil majors totaled about $270bn in 2013, approximately one-third of industry upstream spend. If we project the trajectory of Shell to the other IOCs then we might expect their Capex to fall by 20% over the next two or three years. This would equate to about 7% of the total industry's annual upstream Capex. The brunt is likely to be felt in the high Capex segment, notably in arctic, deepwater and LNG projects, reflected in our forecasts being somewhat more conservative than other firms.

However, there is the other 93% of Capex to go for, possibly in excess of $650bn in 2014. There are two other important groups of players in the game – the highly innovative smaller independent oil companies responsible for the surging onshore production of oil & gas from the US shales and at the other end of the scale the national oil companies such as Saudi Aramco. The NOCs are typically characterised by long-term spending programmes, and commit to long contracts for equipment and services. The NOCs are in the main continuing their spend – as we will show in a later edition, they are having to drill more and more holes for less and less oil. Indeed, in the latest Barclay's Capital industry survey, the NOC's expected their spend to grow at some 11%.

So what of the impact on the oilfield services companies? The cutback in high Capex projects will impact on the unprepared and those who do not have diversified offerings and client base. But all downturns bring major opportunities for well financed companies able to take the long term view – oil & gas is not a short-term business. Indeed, our research in Middle East tells us that the process of becoming an accepted vendor to NOCs such as Saudi Aramco can take several years.

Finally it must be remembered that E&P is not just Capex – the oil and gas must be kept flowing and the associated maintenance, modifications and operations (MMO) spend keeps slowly ramping upwards.

Douglas-Westwood

Subsea installation contractor, Bibby Offshore, won the Company of the Year award at the 2014 Subsea Expo Awards last night (Wednesday 5 February 2014).

Celebrating the highest performing companies and individuals in the subsea energy sector, winners were announced at the awards ceremony held at the Aberdeen Exhibition and Conference Centre (AECC).

The Company of the Year Award recognises excellence in overall company performance in the subsea sector based on developments to date, as well as plans for future success and growth, both within the UK and internationally.

Bibby Offshore's chief executive Howard Woodcock said: "Being presented with this award is excellent recognition for the continued growth and achievements the company has experienced over the past 10 years.

"Some of our recent successes include the opening of a new division and international base in Houston as part of our continuing global growth strategy, and winning a contract with Centrica Energy worth up to £40million in the largest inspection, repair & maintenance (IRM) contract Centrica has ever awarded. Our Bibby Offshore colleagues in Singapore have also secured significant contracts with Brunei Shell Petroleum, further highlighting the impressive international successes the company is experiencing.

"We have also expanded our fleet considerably with the charter of the Olympic Ares construction support vessel, the Mermaid Endurer and the EDT Jane. We continue to expand our offshore vessel fleet to execute large and complex projects in the UKCS, Denmark and elsewhere in the North Sea, offering our clients greater choice and availability and to gain a leading position in the North Sea market.

"In spring last year the company moved into a new multi-million pound purpose HQ to accommodate our growing workforce. Further growth has resulted in additional expansion this year to develop a nearby workshop and warehouse in order to accommodate our ever increasing staff numbers and services.

"This award really highlights the level of hard work and dedication the Bibby Offshore team put in, and everyone is delighted with the outcome."