Danos’ Amelia-based custom fabrication yard recently completed the interconnect piping and production deck extension for a client’s deepwater platform in the Gulf of Mexico. The deck’s installation was the culmination of a two-year process in which Danos worked closely with the client to design and fabricate the 165-ton, fully-integrated production deck extension.
“This project is a great example of how our integrated line of services benefits our customers,” said Mark Danos, vice president of project services. “We’re proud to have met or exceeded every delivery fabrication milestone with zero recordable safety incidents.”
Several Danos service lines supported the project, including fabrication, project management, automation, scaffolding, construction and coatings. In addition to the deck structure, 550 pipe spools were fabricated, with more than 100 installed on the extension. The automated services division supplied panel fabrication, while the project management team coordinated the planning and support of the workpack.
Following the installation and completion of the project, the customer recognized Danos for achieving “Quad Zero.” This means that throughout the 100,000 project man-hours, the company logged zero recordable safety incidents, zero lost time, zero work days and zero motor vehicle accidents.
Award-winning technology developed in the east of England is to be presented as a cost-saving solution for North Sea decommissioning at a major industry conference in Scotland this week.
Scour Prevention Systems will showcase how its patented scour prevention mats using end-of-life tires offer alterative effective protection for decommissioning oil and gas pipelines to delegates at this week’s Decommissioning: Technology Innovation Platform event hosted by Decom North Sea and the Oil and Gas Innovation Centre.
The company, based at OrbisEnergy, Lowestoft, is one of 10 companies chosen to present technology that has the potential to help companies achieve the 35% decommissioning cost reduction targeted by the Oil and Gas Authority (OGA).
Speakers at Thursday’s event at Aker Solutions’ building in Dyce, Aberdeen, include Colette Cohen, chief executive of the Oil and Gas Technology Centre, and Jim Christie, OGA head of decommissioning. Scour Prevention Systems’ John Best and Alistair Punt will explain to delegates the potential savings of tire mats compared to traditional methods such as concrete mattresses or rock armor.
They take less time to install, have no threat of pipeline damage and need no direct remedial works. Furthermore, with an increasing number of cables of offshore wind being installed, the mats provide an effective crossing bridge at an interface with a decommissioned pipeline, they will tell delegates.
“Our aim is to raise awareness that our product is out there as a proven, market-ready and cost effective solution to be considered when people planning decommissioning are evaluating solutions,” said Mr. Best. “Our technology of matrices of recycled vehicle tires has proved to be very successful and is something we believe potential users need to be made aware of so they have a wider choice.”
“When pipelines are being decommissioned, our mats’ design helps to reinstate seabed cover and leave the pipeline secure and protected in a non-obtrusive manner.”
“The product effectively stabilize the seabed over pipelines forming a secure protective layer, protecting the pipeline from exposure and damage, providing a cost effective and easy-to-install solution to pipeline decommissioning.
The mats have been trialed and successfully demonstrated in the North Sea and used to remediate and prevent further scour around offshore wind foundations, and protecting telecoms cables subsea infrastructure.
Lightweight and modular, they require one-off installation without divers or trenching and provide a smooth contour created by the unique properties of the patented design. The mats also protect the pipeline from dragged anchors, fishing equipment and hydrodynamic forces.
Scour Prevention Systems have developed their effective product range, consulting with industry, clients and with assistance from research bodies including expert advice from the Offshore Renewable Energy Catapult. They also secured a SCORE grant to help it take its technology to the next phase two years ago and support the development of appropriate lifting and decommissioning procedures
A new £6m SCORE program launched earlier this year at OrbisEnergy will help companies develop their innovations.
The tire mat invention was a previous winner of the East of England Energy Group’s (EEEGR) Innovation Award.
Mr. Best, a former EEEGR CEO, said: “I am particularly delighted that, in my previous role with EEEGR, Scour Prevention Systems’ mats was an innovation award winner and seeing it moving forward into the industrial deployment is particularly exciting.”
Statoil aims to conduct a major exploration campaign in several parts of the Barents Sea in 2017. The company is also strengthening its position in the area through several transactions with other companies.
“We have worked systematically on developing an exploration portfolio for testing good and independent prospects in 2017 and 2018. For 2017 we see promising prospects in different parts of the Barents Sea. For example, we want to explore the Blåmann prospect in the Goliat area, Koigen Central in PL718 on Stappen High and the Korpfjell prospect in PL859 that was awarded in the 23rd licensing round,” says Jez Averty, Statoil’s head of exploration on the Norwegian continental shelf (NCS).
Image courtesy: Statoil
In addition to an exploration well in PL849 (Blåmann), awarded in the Award in Predefined Areas (APA) in January 2016, Statoil and the operator ENI have also agreed on drilling a new exploration well in PL229 (Goliat) in 2017. Statoil has already a rig on contract which is suitable for operation in the Barents Sea. The company is working on obtaining approval from partners and authorities for an exploration campaign in 2017 covering between 5 and 7 wells in the Barents Sea.
During the past months Statoil has entered or increased its share in five licences in the Norwegian part of the Barents Sea by a number of agreements with Point Resources, DEA, OMV and ConocoPhillips.
“Giving us access to new acreage, the transactions demonstrate our belief in continued exploration potential on the NCS. We have played a leading role in the Barents Sea for 40 years, and we are still a guarantee for high activity in the area,” indicates Averty.
New and major discoveries are crucial to maintain the current NCS production level up to 2030 and beyond. The areas off North Norway will play a key role in reaching this ambition.
“Through these agreements we are strongly increasing our presence in the Hoop area, we are fortifying our position around Johan Castberg, and we see new opportunities in the southwestern part of the Barents Sea,” says Averty.
Statoil completed a comprehensive exploration campaign in the Barents Sea in 2013-2014 without any impact discoveries, but with additional volumes to Johan Castberg through the Drivis discovery. Exploration is a long-term process requiring patience, and information from the previous campaign has been used to further deepen the company’s understanding of the petroleum potential of the Barents Sea.
“We are working actively on replenishing our exploration portfolio through government awards, developing new ideas in existing licences and making agreements with other companies on acquiring licences. This provides a good basis for exploring more interesting opportunities,” says Averty.
“We have also worked efficiently on reducing costs by developing new technology, such as Cap-XTM, and improving drilling efficiency. The wells to be drilled in the south-eastern part of the Barents Sea next year seem to be the most inexpensive offshore exploration wells throughout Statoil,” continues Averty.
Through the Barents Sea Exploration Collaboration (BaSEC) the industry has formed a good basis for carrying out safe and consistent drilling operations. The industry’s joint seismic data gathering in 2014 further demonstrates its will and ability to solve common issues efficiently while taking into account other interests in the same areas.
All agreements are subject to government approval.
| Seller | Licence | Area | Share | New Statoil Share |
|---|---|---|---|---|
| Point Resources | 722 | Hoop | 35% | 35% |
| ConocoPhillips Skandinavia AS, OMV (Norge) AS | 615 | Hoop | 25%/ 20% | 80% |
| ConocoPhillips Skandinavia AS, OMV (Norge) AS | 615B | Hoop | 25%/ 20% | 80% |
| ConocoPhillips Skandinavia AS, DEA Norge AS | 718 | Stappenhøyden | 30%/ 10% | 60% (operator) |
| ConocoPhillips Skandinavia AS, DEA Norge AS | 720 | Stappenhøyden | 30%/ 10% | 60% (operator) |
Driven by the increasing requirements for harsh environment GustoMSC launches a new harsh environment drilling semi-submersible series: the OCEAN-HE. Based on the extensive experience in harsh environment and existing OCEAN designs, these units will add true value to the market in terms of safety, workability and efficiency.
The OCEAN850-HE and OCEAN1600-HE form the basis for respectively the mid water and deep water harsh environment regions of operations. The semi-submersible hull shape is especially designed for low motion characteristics and optimum station keeping capabilities.
The OCEAN1600-HE is the top of the range and the largest drilling semi design by GustoMSC to date. With a maximum displacement of approximately 70,000 tons, a large derrick, DP3 and a 16 point mooring system for station keeping, combined with a large deck area and large variable deck load, it aims at the high spec deep water spectrum. It is designed to cope with the North Atlantic environmental conditions. With the OCEAN850-HE a cost efficient midwater harsh environment design is provided. In the current market CAPEX needs to be controlled as well as the OPEX, to enable to work profitably at a reasonable day rate. It resulted in a moored-only harsh environment semi-submersible of approximately 50,000 tons displacement with a water depth rating of 1,000 meters and a 6th generation efficient single derrick combined with horizontal riser storage.
GustoMSC has been involved in the design and engineering of semi-submersibles since the 1970s. In the mid-1980s, Keppel Fels-DTG and GustoMSC teamed up to develop the DSS series of drilling semisubmersibles, including the Maersk D-rigs, the Gold Star and the Floatel DSS20-NS designs. This successful development is still continuing.
GustoMSC’s proprietary OCEAN series, started in 2008, has also become a success story with five units built and introduced within weight, budget and time. With the introduction of the OCEAN-HE series GustoMSC is able to provide full coverage of the harsh environment drilling spectrum.
The National Oceanography Centre (NOC) has launched a new collaborative way of working with the oil and gas industry. NOC will provide innovative science and technology to enable industry to work safely and efficiently, with minimum impact on the marine environment.
The launch comes off the back of many years of working with the industry on both an individual and collaborative basis, to develop science and technology to enhance competitive advantage, maximize investment and reduce operational costs during exploration, production and decommissioning. NOC has unique expertise in marine autonomous and robotic systems and sensors, for operations in challenging, hazardous and deep-sea environments. NOC’s fleet of Autonomous Underwater Vehicles, Remotely Operated Vehicles, Unmanned Surface Vehicles and submarine gliders have all been developed to operate in extreme conditions. NOC’s science teams have had many years of experience in testing and demonstrating the capabilities of our autonomous platforms and sensors, in such hazardous environments.
NOC Associate Director, Innovation and Enterprise, Kevin Forshaw commented “Building on our existing relationships, we are hoping that this offer will encourage more oil and gas companies to develop long-term relationships with us, as we believe there are benefits to be gained on both sides. With the many challenges facing the industry, companies are recognizing the value of novel science and technology, to create real business value. By accessing external funding opportunities and joint-industry funding, companies are benefiting from responsive and flexible innovations to drive down operational costs, maximize existing investments, access and share innovation expertise, and respond to government fiscal and environmental regulations.”
The collaboration package is an annual subscription which includes access to efficient, authoritative and rigorous science research services, responsive to the industry’s needs, expert interpretation of valuable data-sets, access to software and data-products and alerts for public funding opportunities. Collaborators will also have Associate Membership of the NOC’s Marine Robotics Innovation Centre.
For more information about this project, the NOGIC website can be found here.
Shell announced on Tuesday, September 6, 2016, that production has started from the Stones development in the Gulf of Mexico. Stones is expected to produce around 50,000 barrels of oil equivalent per day (boe/d) when fully ramped up at the end of 2017.
The host facility for the world’s deepest offshore oil and gas project is a floating production, storage and offloading (FPSO) vessel. It is the thirteenth FPSO in Shell’s global deep-water portfolio and produces through subsea infrastructure beneath 9,500 feet (2,900 meters) of water. Stones underscores Shell’s long-standing leadership in using FPSOs to safely and responsibly unlock energy resources from deep-water assets around the world.
Stones is the world’s deepest oil and gas project, operating in around 2,900 meters (9,500 feet) of water in an ultra-deep area of the US Gulf of Mexico. Photo courtesy: Shell
“Stones is the latest example of our leadership, capability, and knowledge which are key to profitably developing our global deep-water resources,” said Andy Brown, Upstream Director, Royal Dutch Shell. “Our growing expertise in using such technologies in innovative ways will help us unlock more deep-water resources around the world.”
Stones, which is 100% owned and operated by Shell, is the company’s second producing field from the Lower Tertiary geologic frontier in the Gulf of Mexico, following the start-up of Perdido in 2010.
The project demonstrates Shell’s commitment to realizing significant cost savings through innovation. It features a more cost-effective well design, which requires fewer materials and lowers installation costs; this is expected to deliver up to $1 billion reduction in well costs once all the producers are completed.
The FPSO is also specially designed to operate safely during storms. In the event of a severe storm or hurricane, it can disconnect and sail away from the field. Once the weather event has passed, the vessel would return and safely resume production.
Shell’s global deep water business is a growth priority for the company and currently produces 600,000 boe/d. Deep-water production is expected to increase to more than 900,000 boe/d by the early 2020s from already discovered, established reservoirs. Three other Shell-operated projects are currently under construction or undergoing pre-production commissioning: Coulomb Phase 2 and Appomattox in the Gulf of Mexico and Malikai in Malaysia.
- Visit the Stones project page to watch a film and download fact sheets
Semco Maritime has been awarded a contract on Atex Management Services including software supplied by SafeEx for inspection of approximately 30,000 pieces of equipment in Maersk Oil's Culzean project.
After a bidding round, it is official that Semco Maritime will be suppliers of a system based on the SafeEx Software for inspections in Maersk Oil's Culzean gas field. The software will be used to perform the initial Ex-inspections on a production platform, which consists of a residential platform, a process platform, a wellhead platform and a FSO operating in the field.
Though the system initially will be used for Ex-inspections, there is a further desire to use it for mechanical completion and other maintenance and inspection tasks. The system will be integrated to Maersk Oil’s ERP systems SAP and technical completion system PIM360.
SafeEx’ tablet-based inspection and maintenance software allows you to perform all routines in one procedure.
- The advantage of the SafeEx Software is that the system provides a uniform way to make inspections that increases safety and save 30 to 60 percent on man-hours, says Market and Business Development Manager Erik Grønborg from Semco Maritime, who for years has designed and produced equipment for Maersk Oil.
SafeEx’ tablet-based inspection and maintenance software allows you to perform all routines in one procedure. Technologically it is the leading solution on the market right now.
A standard rig or platform typically have 30 to 40 different checklists for inspections, but the SafeEx Software converts these checklist into electronic tasks. The tasks are conducted in guidance from the hand-held tablet using integrated layout drawings. This gives a significant reduction in the number of man-hours.
Each piece of equipment has a RFID chip installed, which is approved for Ex zone 1. This enables the software in the handheld device to create an electronic time-stamp and a full electronic audit trail. After each completion of an inspection, all information is instantly available online both off-shore on the unit and among the onshore management.
- Our mission with the tablet-based software solution has been to streamline work procedures of inspections, in order to make them faster, easier and more cost-effective in performance. In addition, there is the whole safety aspect in which our software provides a full overview of the maintenance condition, explains CEO Henrik Andersen from SafeEx.
The contract with Maersk Oil is one of the largest installation in terms of number of equipment that SafeEx has ever won. Besides the fact that the system will be used at Maersk Oil, the DNV GL-verified SafeEx Software is being used for inspections at among others Petronas, Statoil, Dong Energy, Seadrill, Noble, BW Offshore, Aker Solutions and Arla Foods.
The Maersk Oil operated Culzean project is located about 145 miles east of Aberdeen and is one of the largest gas discoveries in the UK North Sea.
The first gas from the project is expected in 2019 and it is expected to provide for around five percent of UK’s total gas consumption by 2020/21 with a peak production rate of 400 to 500 million standard cubic feet per day.
A simple, smart concept and increased drilling efficiency have shaved some NOK 200 million off the capital expenditures of this already resilient development project after the investment decision.
The development helps maximize production from the Fram area, in addition to boosting Troll C production and activities.
Fram C East is a long production well drilled from the existing Fram subsea template. Production will be tied back to Troll C, an important North Sea hub.
The development helps maximize production, in addition to boosting Troll C production and activities. (Photo: Øyvind Hagen)
Gas will be transported to Kollsnes via Troll A, whereas oil will be piped to Mongstad for further processing.
Originally estimated at some NOK 800 million capital expenditures have now been reduced to some NOK 600 million thanks to a simple, smart well concept and significantly increased drilling efficiency.
“Fram C East is a small development project, but a key element of our plans to capture maximum value in the Fram area,” says Lars Høier, vice president operations, Troll and Fram.
“We are pleased to see that our targeted efforts to cut costs and improve profitability on the Norwegian continental shelf (NCS) have benefitted this development project. Fram C East has seen profitability rise from good to even better, and will see a positive cash flow as early as in 2016,” Høier adds.
Statoil has a long-standing record of infrastructure development on the NCS, which is key to the profitability of small-size development projects.
Last week Statoil submitted the Plan for Development and Operation of Byrding (north of Fram) together with another partnership. Production from this field, too, is tied back to the Troll C platform.
“Our strong position and role in several partnerships in the Troll / Fram area give us flexibility and possibilities to generate high value by taking an overall approach to the area, maximizing the use of the existing infrastructure. This represents good resource management, benefitting our partners, our owners, suppliers and society at large,” says Gunnar Nakken, senior vice president, Operations West.
Capital expenditures totaling some NOK 600 million, recoverable resources are estimated at 18.2 million barrels of oil and 1.6 billion sm3 of gas. Profitability is resilient with a low break-even.
Anadarko Petroleum Corporation (NYSE: APC) announced on Monday, September 12, it has entered into a definitive agreement to acquire the deepwater Gulf of Mexico assets of Freeport McMoRan Oil & Gas for $2.0 billion. The transaction, effective Aug. 1, 2016, is expected to close prior to year end.
"This immediately accretive, bolt-on transaction strengthens our industry-leading position in the Gulf of Mexico and is a catalyst for the company's oil-growth objectives, with quality assets being acquired at an attractive price to create significant value," said Anadarko Chairman, President and CEO Al Walker. "We expect these acquired assets to generate substantial free cash flow,(1) enhancing our ability to increase U.S. onshore activity in the Delaware and DJ basins. Our current plans are to add two rigs in each play later this year, and to increase activity further thereafter, with an expectation of more than doubling our production to at least 600,000 BOE per day collectively from these two basins over the next five years. This increased activity would drive a company-wide 10- to 12-percent compounded annual growth rate in oil volumes over the same time horizon in a $50 to $60 oil-price environment, while investing within cash flows. Additionally, the transaction expands Anadarko's infrastructure in the Gulf, adds to our unmatched inventory of low-cost, subsea tieback opportunities, and bolsters optionality with new exploration prospects. The company's Gulf of Mexico position, with the addition of these properties, will have net sales volumes of approximately 155,000 BOE per day, comprised of approximately 85-percent oil."
Anadarko's operated Lucius facility in the deepwater Gulf of Mexico continues to achieve strong reservoir performance and facility productivity. As a result of this performance, the company is increasing the estimated ultimate recovery of the field to more than 400 million BOE from the previous 300-plus million BOE. Additionally, gross oil sales volumes through the facility recently surpassed 100,000 barrels of oil per day (BOPD). Under the terms of the transaction, Anadarko will increase its working interest in Lucius to approximately 49 percent from its previous 23.8-percent ownership, enabling the company to further capitalize on additional future value-adding opportunities at Lucius.
The acquisition and development cost of the acquired properties, excluding a total of approximately $300 million of materials inventory and seismic, is approximately $13.50 per BOE for the estimated proved reserves to be acquired. The assets are being acquired at an estimated EBITDAX multiple(1)(2) of 1.5 for the expected sales volumes over the coming 12 months, using the current futures strip price for oil and natural gas. Please see the supplemental information available here for additional details on the transaction.
Upon closing, the transaction is expected to add approximately 80,000 BOE per day to Anadarko's sales-volume guidance – more than 80 percent of which is comprised of oil. The company also is expected to increase its 2016 full-year capital guidance, not including the acquisition, to a range of $2.8 to $3.0 billion, primarily reflecting the increased activity in the Delaware and DJ basins.
Jefferies Group LLC and Latham & Watkins LLP are serving as advisors to Anadarko on the acquisition.
Gullfaks Rimfaksdalen (GRD) was scheduled for start-up on Christmas Eve this year, but the project has worked faster and now the field is on stream – at lower costs than planned.
The project delivered is more than NOK 1 billion below the estimate of the plan for development and operation (PDO), reducing costs from NOK 4.8 billion to around NOK 3.7 billion.
"I am pleased to see that the project starts up four months ahead of plan, demonstrating good and efficient project management," says Torger Rød, senior vice president for project development in Statoil.
Image courtesy: Statoil
Over time we have focused on reducing costs and raising the profitability of our projects to ensure long-term activity and value creation on the Norwegian continental shelf (NCS). Based on a smart concept using standard solutions and existing infrastructure, Gullfaks Rimfaksdalen strongly proves that we are on the right track to succeed on this work," continues Rød.
Recoverable reserves are approximately 80 million barrels of oil equivalent, mostly gas. The licensees are Statoil (operator) (51%), Petoro (30%) and OMV (19%).
"The volumes from Gullfaks Rimfaksdalen help us reach our ambition of maintaining production and a high activity level on the NCS beyond 2030. We have a well-developed infrastructure and we will keep realizing opportunities in the North Sea," says Arne Sigve Nylund, executive vice president for Development and Production Norway.
"This development leads to more production, improved value creation and higher activity level on Gullfaks, and also throughout the value chain related to the field," continues Nylund.
The Gullfaks Rimfaksdalen development consists of a standard subsea template with two simple gas production wells, and possibilities for tie-in of two more wells. The well stream is connected to the existing pipeline leading to the Gullfaks A platform.
Gas and condensate are transported in existing pipelines to the processing plant at Kårstø north of Stavanger for processing, and from there the gas is exported to markets on the European continent. Gullfaks Rimfaksdalen is one of Statoil’s fast-track projects, aiming to realize resources quickly and inexpensively, for example by using existing infrastructure while it is still available.
Location: In the North Sea, around 5-15 kilometers southwest of the
Gullfaks A platform
Volumes: around 80 million barrels of oil equivalent (boe) (gas and condensate)
Depths: water depth of around 135 meters, 3200 meters below the seabed
The Gullfaks field is operated from Statoil’s office at Sandsli in Bergen
Statoil and Petrobras took a step forward in strengthening their cooperation in Brazil by signing a Memorandum of Understanding (MoU).
The MoU was signed by Statoil CEO, Eldar Sætre (left), and Petrobras CEO, Pedro Parente. (Photo: Ole Jørgen Bratland)
The intention of the MoU is to evaluate joint participation in future tenders for exploration areas and to increase upstream collaboration in producing fields in the Santos and Campos offshore basins.
The agreement also sets out a potential framework for cooperation on value creating opportunities in the gas value chain.
The agreement was signed by Petrobras’ president and CEO Pedro Parente and Statoil’s CEO Eldar Sætre during the ONS 2016 conference in Stavanger.
It follows the agreement in July 2016 whereby Statoil acquired Petrobras’ 66% operated interest of the BM-S-8 offshore license in the Santos basin, subject to government approval. "This MoU reflects our long-term commitment to Brazil and is a result of our strong and long-standing relationship with Petrobras. Collaboration with partners like Petrobras, a company well-known for its technical expertise and profound knowledge about one of our core strategic areas, represents an excellent opportunity for us. We hope that this will result in significant value creation potential for both parties”, says Statoil CEO, Eldar Sætre.
Petrobras and Statoil through this agreement will continue their exploration strategic alliance, with the intent to define opportunities in the pre-salt polygon of the Santos and Campos basin. The companies aim to capture value through application of technology and simplification of operational activities. Currently, Petrobras and Statoil are partners in 13 blocks in either exploration or production; 10 in Brazil and three abroad.
"We are moving into a strategic partnership that will be beneficial for both companies. Statoil has very high levels of oil recovery in their producing fields, for example, and we will have access to this experience and know-how through a partner, with obvious benefits for both sides", says Petrobras CEO, Pedro Parente.
The agreement has a horizon of two years, and the joint activities undertaken will depend on negotiations following the signing of the document.
Claxton, an Acteon company, has completed its involvement in the abandonment of two wells on the Horne and Wren Platform in the Southern North Sea.
Completed within 18 days in July 2016, Claxton was responsible for the 5.1/2” tubing cut verification, tubing recovery, sub-mudline abrasive conductor severance, conductor cut verification and the subsequent multi-string recovery from both wells.
Rob Horton, project engineer, Claxton, said: “The multi-string severance was performed from a jack-up lift barge (JULB) for this project, allowing significant cost savings for the client against the use of a rig.
“The Horne and Wren platform has a small 8m x 8m weather deck footprint, creating a space challenge which we managed to overcome. As well as using our latest evolution of the ‘SABRE’ abrasive cutting system, this project also required a full, bespoke, light weight work package. This included a hydraulic proving system and a utility crane to ensure self-sufficiency in handling our equipment.
“Proving of tubing and conductor cuts were completed with the same system, enabling us to reduce equipment, time and money for the client. Equipment was located on the JULB with services run to the platform for the tubing recovery and multi-string severance and subsequent casing retrieval.
“We also developed a bespoke tubing laydown frame that allowed the quick and safe laydown of the severed tubing in a controlled manner.”
Claxton can overcome issues in engineering bespoke designs to accommodate all platforms and environments. Rigless platform well abandonment is just one of the many services Claxton can offer to reduce the costs of decommissioning projects. Learn more about Claxton’s decommissioning services.
Maersk Drilling has been awarded a contract for the jack-up rig Mærsk Gallant with Maersk Oil. The contract covers the plugging and abandonment of the Leadon and James subsea fields in the UK sector of the North Sea. The duration of the contract is estimated to 230 days, with commencement in February 2017. The estimated contract value is USD 24m.
“Despite an extremely challenging market, I am glad to say that Maersk Drilling is still able to secure new contracts for our rigs. By focusing on operational excellence and technical problem solving, we strive to always be a trusted and value-adding partner for our customers,” says Michael Reimer, Head of Global Sales in Maersk Drilling and continues.
“Maersk Drilling has extensive experience with plugging and abandonment operations, and we are looking forward to working closely together with Maersk Oil to safely decommission the two subsea fields, Leadon and James.”
Mærsk Gallant is about to complete its current contract with Total E&P Norge A/S. The rig is designed for year-round operation in the North Sea, in water depths up to 120 m (394 ft) with an available leg length below hull of 138.5 m (454 ft). The rig is fully equipped for high pressure/high temperature drilling (HP/HT).
GE’s Marine Solutions business (NYSE: GE) and Zentech Inc. announced the signature of a cooperation agreement under which the two parties will work together to provide advanced vessels for their marine and offshore customers.
Covering a range of vessel types, including self-elevating lift boats, drill ships and semi-submersibles, the agreement leverages the strong capabilities from both companies. While Zentech will contribute with its in-depth knowledge and extensive experience in design, GE’s Marine Solutions business will provide smart and advanced engineering expertise and technology in power generation, propulsion and control.
The Z-210 is a self-propelled, self-elevating, DP-2 capable, ABS Class, high-temperature (55 degrees Celsius) rated, four-legged mobile offshore unit.
Both GE and Zentech Inc. are working together to solve the challenges faced by the industry and meet customer demands for greater levels of coherence in vessel and system design while simultaneously striving to reduce the cost of construction and overall cost of ownership. The landmark long-term deal has already started to bear results with a first implementation contract, which sees GE set to deliver its electric power and propulsion, dynamic positioning and vessel control system solutions for Zentech’s Z-210, currently under construction at CSSC Huangpu Wenchong Shipbuilding Company Limited in China.
The Z-210 is a self-propelled, self-elevating, DP-2 capable, ABS Class, high-temperature (55 degrees Celsius) rated, four-legged mobile offshore unit capable of operating in water depths of up to 280 feet. Scheduled for delivery in 2018, the Z-210 addresses the growing needs for lift boats in the Middle East, Southeast Asia and Far East markets where the production, well intervention and platform support activities require the capability for a wide range of water depths from as shallow as 13 feet all the way up to 280 feet.
Zentech Inc. is a Houston-based marine engineering and naval architecture firm that enjoys a global presence and a deep industrial expertise, which encompasses dynamically positioned semi-submersibles, drill ships, jack-up drilling units, modular platform drilling rigs, barge rigs, fixed offshore platforms, floating production systems, risers and pipelines.
Ramesh Maini, president and CEO of Zentech commented, “This is a defining moment in the evolution of Zentech as one of the world’s leading designers of advanced offshore solutions. As specialist designers, we are proud to be working with GE and look forward to incorporating the best of what GE has to offer into our customers’ future vessels. It’s a great prospect for Zentech, and we strongly believe that this collaboration will provide immeasurable value for our customers.”
“We are committed to meeting the operational requirements of ship operators and marine companies. Thanks to the GE Store, GE’s Marine Solutions business has one of the broadest capabilities within the industry. From prime movers, smart automation and control systems to software analytics, we are able to provide a fully integrated solution for our customers to lower project risk and cost of ownership,” said Tim Schweikert, president & CEO, GE’s Marine Solutions business. “We are very much looking forward to working with Zentech on this project and in the future.”
With a total depth of 5,941 meters, Mærsk Gallant has beaten the record for deepest well ever drilled on the Norwegian continental shelf.
On 31 July, Mærsk Gallant drilled the Solaris ultra HPHT (high-pressure, high-temperature) well to a total depth of 5,941 meters TVD (True Vertical Depth).
Maersk Gallant. Photo courtesy: Maersk Drilling
This means that Mærsk Gallant has beaten the record for deepest well ever drilled on the Norwegian continental shelf.
"We have broken a number of records during the Solaris operation. But this achievement is second to none. There was a lot of cheering in the driller's cabin that day," says Sadi Ozturk, Assistant Rig Manager on Mærsk Gallant.
He continues:
"The Solaris exploration well is one of the most challenging wells in the North Sea. All crew members are very excited about this achievement."
In the Solaris project – together with the customer, Total E&P Norge – Maersk Drilling has taken a 15,000 psi rig and adapted the equipment and procedures in order to drill a reservoir section where predicted pore pressures are well in excess of 15,000 psi.
The demanding requirements of the customer have led to a wide variety of modifications on the rig.
Given the extreme circumstances, the rig team on Mærsk Gallant has set several records during the operation.
The list includes:
1: the largest and most complicated BOP stack rig up.
2: the biggest cement job (600 m3 cement slurry).
3: the heaviest casing run (1,2M lbs).
4: first time a 20K BOP has been nippled up (installed) and used to drill an ultra HPHT well.
At the moment, the crew members on Mærsk Gallant are in the process of plugging and abandoning the well and expect to commence the rig move in the beginning of September.
The Njord A platform arrived at Kværner Stord on Thursday 25 August. The platform will now be reinforced and renovated for production beyond 2030.
Oil and gas production on Njord should in fact have ceased a long time ago. When the field was developed, it was scheduled for production until 2013.
The Njord A platform being towed by the anchor handling tug supply vessel "KL Sandefjord". (Photo: Thomas Sola/Statoil)
“We have been able to recover more of the reserves than originally expected, and following new discoveries and the Snilehorn development, field production will continue for at least ten more years. This is a big and important project and Statoil is working closely with the partners and suppliers to succeed,” says Snorre Grande, project director for the Njord Future project. The commercial basis for the Njord A renovation still requires production from Njord and Hyme, where we have identified 177 million barrels of oil equivalent (boe) remaining to be produced.
Scheduled for tie-in to Njord, the Snilehorn discovery contains 66 million barrels. These two fields combined will provide more recoverable resources than the Gina Krog field, which is currently under development on the Norwegian continental shelf.
To enable Njord A to receive these resources, the hull must first of all be reinforced. Extensive renovation on board the platform will also be made.
Njord has been on stream for 6821 days and 54 wells have been drilled, including exploration wells. A total of 167 million barrels of oil and 41 billion standard cubic meters of gas have been produced since the start-up almost 20 years ago.
We are about to pass a key milestone in the history of Njord as the Njord A platform comes “home” to Kværner Stord, where it was constructed in 1997. At that time the yard was called Aker Stord. In April this year Kværner Stord was awarded the framework contract for renovation of the platform and pre-engineering will continue throughout this year. The framework contract also includes an option for the platform renovation work.
“We have been preparing the platform on the field since March. Marine operations have been carried out safely and successfully, and well within the planned execution period. It has been great to take part in the Njord A platform’s voyage to Klosterfjorden, where Kværner is now taking over,” says Knut Lorang Alvheim, project manager for marine operations on board Njord A.
The Njord Future project will also be prepared for further phasing-in of third-party fields. A new and fortified Njord platform may furthermore become a field centre in the future for new discoveries in the area.
Production on Njord and Hyme was shut down in June and preparations for the Njord A tow-in have continued through the summer, including tasks such as securing of wells and facilities before the actual disconnection.
The Njord Bravo storage vessel arrived at Umoe Sterkoder in July. Extensive work is currently being made to examine the vessel’s condition closely. A decision will be made this year whether it is possible to extend the life of the storage vessel or we need to construct a new vessel.
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