Chet Morrison Contractors announces a new tool for cleaning drilling and production risers that is safer, faster and more cost-effective than current methods. MUDBUG is an air-actuated, self-propelled device that uses oscillating brushes to clean debris build-up inside risers, moving through the length of the riser and back out again.

“MUDBUG is a giant leap forward in deepwater riser cleaning,” said John DeBlieux, vice president of Deepwater Riser Services for Chet Morrison Contractors. “It’s not only more cost-effective and safer, it’s also better for the environment and customer’s bottom line.”

Unlike other methods, MUDBUG does not require high-pressure water to remove the rust, scale and drilling mud that builds up in drilling and production risers. Instead, MUDBUG uses only 120-psi air to operate, thus eliminating the problem of water disposal and risk associated with high-pressure washing.

MUDBUG can be operated by a two- or three-man crew instead of the usual five-man team required to clean a riser. Because the device is portable, it can easily be transported via plane or helicopter to any remote location either onshore or offshore. Its small job box (two feet by four feet) takes up very little space, making it ideal for rigs or other offshore operations. When operational, MUDBUG is approximately three feet long and 19 inches in diameter.

The “MUDBUG” name was inspired by the crawfish, which pushes back mud and debris to make its home. It has been successfully tested and used in the offshore environment by major drilling contractors. The device comes with an extra motor and all brushes, and is available exclusively through Chet Morrison Contractors in the United States, Gulf of Mexico, Caribbean and Trinidad. For more information, visit www.mudbugrisercleaner.com.

by CGG

Despite depressed oil prices, the Gabonese 11th deepwater licensing round has generated considerable interest from both International Oil Companies (IOC’s) and newcomers alike, encouraged by the success of exploration in the conjugate margin offshore Brazil, as well as recent pre-salt discoveries such as Ruche, Tortue, Diaman and Leopard in nearby Gabonese waters. CGG has worked directly with the Direction Generale des Hydrocarbures of Gabon (DGH) to acquire and process over 25,000 km2 of new 3D BroadSeis™ multi-client seismic data over available and licensed blocks in the South Basin to enable evaluation of this prospective area. A fast-track pre-stack time-migrated dataset for this survey is available now, along with sample pre-stack depth reverse time-migrated (RTM) data in one area. The final RTM for the whole of the survey area will be available this summer.

Map showing available license blocks and coverage of new broadband 25,000-km2 multi-client survey and additional data being acquired in blocks F14 and F15. Credit: CGG

The objective of the survey is to image potential prospective structures at base salt level without compromising the shallower post-salt image quality. The data do not disappoint. Even a preliminary ultra-fast-track dataset produced onboard was described as “way beyond expectations” by a major oil company interpreter. On the full fast-track dataset, more detail below the salt is being revealed than has ever been seen before, revolutionizing the understanding of the geology of the area. Early seismic imaging results indicate the presence of thick syn-rift and sag sequences below the salt, which are the key intervals of a pre-salt petroleum system and indicate many exciting prospects, some of which continue beyond the borders of the survey so that their full extent cannot be gauged.

This survey is being processed using the latest high-end imaging technology to produce the clearest images. The fast-track PSTM volume shows clear uplift over the existing data, while the fast-track PSDM shows the full benefits of advanced velocity modeling and depth-migrated modern broadband 3D seismic data. The uplift in subsalt imaging that will be achieved in the final dataset is dramatic; the RTM fully depth-migrated example line (which can be seen in the lightbox on the CGG booth #1250) shows clearly defined tilted fault blocks and horst features as well as the highly complex nature of the thrusted and distorted salt and sediment overburden.

Multi-layer tomography (TomoML) and full waveform inversion (FWI) are being used to create the final velocity model, with RTM being used in the velocity model building iterations. The high-quality, low-frequency data acquired using the BroadSeis solution is particularly beneficial for FWI as the low frequencies prevent cycle-skipping. The imaging improvement from the FWI velocity model can be seen both in the shallower section, where pull-up/push-down image distortions are precisely corrected, and in the deeper salt bodies, where salt flanks and subsalt reflectors show improved focus and continuity due to better overburden description. A booth theater presentation describing details of the imaging of this dataset is being given daily on our booth #1250, and these were also presented by Andrew Ratcliffe in the technical sessions on Tuesday (Tu SRS2 07).

Although this dataset delivers unprecedented images of the subsurface in this area, additional data are being acquired to improve the imaging still further in the most complex geology to the southeast of the survey. Tailored multi-vessel survey design is enabling longer offsets, up to 14 km in the same orientation as the original data, to be acquired over block F14. In block F15, adjacent to the Congo border, a second orthogonal azimuth of the full range of offsets, including those up to 14 km, is being acquired. Longer offsets and dual azimuths are expected to improve the sub-salt illumination and provide even greater clarity of the most challenging structures. In order to acquire these long offsets an additional source vessel is being deployed. Synchronized source technology and blended acquisition are being used to enable the shot interval to be less than the record length, so that source density, and therefore fold of coverage, can be maintained.

All the survey data form the centerpiece of an integrated geoscience project which will include interpretation of the gravity data acquired with the seismic to analyze the deep structure of the basin, analysis of the key wells in the area, full seismic interpretation in the depth domain with integration of satellite seep data to identify potential natural hydrocarbon escape conduits and production of paleogeographic, reservoir distribution and source rock maturity maps of key stratigraphic intervals, among other products. Integrated studies are becoming increasingly popular as they provide a single validated source for information and each individual part is improved by understanding the requirements of the larger project. Large multi-client surveys also provide a cost-effective means of acquiring high-quality 3D seismic data which allows oil companies to reduce their exploration risk in both mature and frontier areas and helps to reduce the time required from licensing award to drilling wells. 

Fugro has provided a spectrum of services to BP Trinidad and Tobago LLC (bpTT) to allow safe drilling and completion of five subsea wells in an area of strong currents. The services include wellhead motion (fatigue) monitoring, metocean measurements and positioning services.

The positioning activities were carried out onboard the drilling vessel as well as on the three supporting anchor handling tugs (one tug had subsea acoustic ROV positioning). Fugro provided bpTT with dimensional control survey services, DGNSS verification, gyrocompass calibration and offset measurements, navigation at the well locations, and final positioning of the drilling vessel within the required tolerance of 3 metres. This position accuracy was required because the five wells were being drilled in a cluster (with separation ranging between 16 and 30 metres) and because of the need to accommodate subsea Xmas trees. Survey support was provided for anchor handling and ROV operations as well as for subsea asset positioning.

Fugro deployed its WARIS to monitor bpTT’s subsea equipment integrity in an area of strong currents. Credit: Fugro

To enable the monitoring of subsea equipment integrity during operations, Fugro supplied its Wellhead and Riser Instrumentation Service (WARIS) which included monitoring at two subsea locations: on the BOP stack and on the riser, immediately above the lower flex joint. Data were relayed to the vessel by hydroacoustic modems and then transferred to secure onshore storage, before being processed and made available to staff both offshore and onshore. The motion measurements gave bpTT real-time tracking of wellhead fatigue as well as determination of foundation stiffness and the BOP stack resonant frequency. Midway through the programme the recorded real-time data were utilised to update theoretical fatigue transforms and improve the fatigue life of wellhead components.

Strong currents at the well location needed to be understood for operational planning, as well as further analysis of subsea equipment motions. Fugro installed an Acoustic Doppler Current Profiler on the seabed for metocean measurements. Current measurements were relayed to the vessel in real time using the same hydroacoustic equipment as with the WARIS.

bpTT Drilling Engineer, Anil Saisbhan said, “The additional non-traditional services from Fugro with the WARIS and real-time ADCP measurements have enabled us to realise more fatigue life of wellhead components than was theoretically suggested, as well as to mitigate against operational risk with high currents which occur sporadically in the area.”

Fugro Trinidad Country Manager, Neil Bissoon, commented, “This project demonstrates another of the major advantages that Fugro can bring to operators. We delivered a cost-effective solution to bpTT’s drilling project by sharing synergistic support functions across three major services.”

Oilennium™ Ltd., a Petrofac company that provides eLearning training services to the oil and gas industry, has completed the Well Control Awareness Course (Level 1), which was developed for the International Well Control Forum (IWCF).

The eLearning course, which consists of seven modules, was launched and offered free-of-charge on 7 March 2016 by the IWCF. Within just 28 days, 2667 from 1000 companies in 100 countries had registered, and 745 had passed it.

Today, that number has risen to 5285 registrants from 2409 companies in 114 countries. And 1702 have earned a certificate of completion by successfully answering questions about the life cycle of a well, what triggers a well control incident and how incidents can be prevented.

Record number of registrations

Samantha O’Hara, General Manager for Oilennium, stated, “For Oilennium, the Well Control Awareness Course represents several significant milestones. It is the first course that we have created with self-enrolment capability and the first to be offered for free to everyone. When coupled with the high quality of the course, it’s no surprise that it has generated such a high number of registrations in so little time.”

Word of the course has spread quickly. Already, Texas A&M University, where approximately 59,000 students study, has made completion of the Level 1 eLearning suite a mandatory requirement for its first year undergraduate engineering students and for all of its engineering students who study at its branch in Qatar.

Shortlisted for GetEnergy 2016 Award

The course was also shortlisted by GetEnergy 2016 for the “Learning at the Core” award category. To view the video that was developed for this year’s awards, which offers a quick overview of the Well Control Awareness Course, simply visit https://vimeopro.com/oilennium/iwcf-video.

The IWCF, which sets international training standards for well control, commissioned Oilennium to create a user-friendly course to raise awareness of well control amongst those working in the global oil and gas industry, as well as those who are considering a career in the sector.

David Price, CEO of IWCF said: “We are delighted with the uptake of the new Level-1 Well Control Awareness Course since it launched in March. When working with Oilennium to develop this course it was important to us, particularly in the current climate within the industry, to give something back to the industry. By making this training readily available we believe that it will help to increase understanding of how well control events can occur and their consequences and prevention.

“The training is open to everyone. It is specifically aimed at those in the industry with a secondary involvement in well operations, but students considering a career in oil and gas or anyone else with an interest in the industry will also find it insightful. Ultimately, we want to see an increase in well competency which will improve offshore safety.”

The online offering is the latest initiative in IWCF’s ongoing campaign to increase understanding of what triggers a well control incident, the impact and how such incidents can be prevented. It is based on specific recommendations made by the International Association of Oil & Gas Producers (AOGP) in the wake of the Macondo tragedy. The recommendations state that an introductory Level 1 Awareness Training should be introduced. IWCF is the first organization to achieve this.

Utilizing colorful 3D animation technology, voice-overs and striking visual images, the fully interactive course opens with an explanation as to how reservoirs are formed, which leads to an overview of the well life cycle, from drilling and well interventions to plugging and abandonment. It also sheds light on potential hazards, methods of prevention and how kicks and blowouts are addressed by drawing upon actual, real life incidents. In addition to the technical information, the modules highlight the importance of human factors, such as behaviors and decision-making. Upon completion of the course, the user will have an awareness of the well life cycle and basic well control.

Easy to administer & track course activity

For the IWCF, it is very easy to administer because participants enroll themselves. By accessing the course’s customized dashboard reporter, IWCF managers can track all activity associated with the course. At a glance they can view who has registered, their individual progress and completion of the course. It identifies the company and geographic location, as well.

About International Well Control Forum

Founded in 1992 by oil and gas operators, the IWCF is an independent, not for profit organization with elected representatives and a global network of branches, representing the entire industry. Headquartered in Montrose, UK, IWCF administers well control training, assessment and certification programs. IWCF is committed to creating a step-change in well control knowledge and recently invested in new facilities in Montrose to enhance training for assessors and instructors, including the use of simulators to replicate real-life scenarios. IWCF has certified over 160,000 people on almost every continent through 210 accredited training centers.

About Oilennium Ltd.

Oilennium Ltd. is part of oilfield services company Petrofac. Oilennium was founded in 2000 to provide bespoke blended learning solutions for companies operating in the international energy sector. Learning programmes are available about the oil and gas industry, risk management, Leadership and Management, drilling, QHSSE, process safety and equipment operations, among a host of others.

To date, approximately 75,000 people around the world have access to Oilennium’s eLearning programs. Oilennium provides a broad range of learning programs to numerous corporate customers, including Chevron, Enbridge Pipelines, ConocoPhillips, ADCO, Perenco, Halliburton, Baker Hughes, ECITB, Hydratight, Noble Drilling, Pacific Drilling, Marathon Oil, Seajacks, Transocean, and Weatherford. Oilennium operates from its global headquarters in Loddon in Norfolk, England, and its regional offices in Houston Texas, the United Arab Emirates and Aberdeen, Scotland.

Materia Inc., a leader in the development and manufacture of catalysts and advanced polymers, is pioneering the next generation of oil and gas solutions with Proxima® thermoset resins.

Proxima resins provide reliable, practical and economical solutions that solve major technology challenges in subsea thermal insulation, subsea buoyancy and downhole tools. Proxima resins are extremely easy to process due to their inherently low viscosity and controlled cure profile. The resulting durable products are ideal for use in extreme environments. Compared with commonly used polymers, Proxima thermosets withstand the most extreme hot/wet conditions and provide excellent performance.

Proxima HTI resins for high temperature subsea thermal insulation provide an effective thermal barrier between high temperature flowlines and seawater. Proxima polymers maintain structural integrity in operating environments at water depths greater than 10,000 ft., and this advanced insulation technology can be rapidly and safely applied in the factory or the field. Earlier this year, Materia was selected by Shell Offshore, Inc., a wholly-owned subsidiary of Royal Dutch Shell plc, to supply pipeline insulation materials for the Appomattox development in the deepwater Gulf of Mexico.

Brian Conley, senior Proxima product development manager, said, “Materia’s subsea thermal insulation products offer full system integrity for high temperature deepwater environments. The use of Proxima HTI polymers results in lower risk and better reliability for insulation of high temperature subsea flowlines, field joints and equipment relative to the alternative engineered solutions.”

Proxima STR thermosets are designed for use in syntactic foams in subsea buoyancy applications. These lightweight materials withstand the severe hydrostatic pressures of deepwater and ultra-deepwater environments while providing substantially improved buoyant support to critical subsea components. Ed Lehman, Proxima product development manager, said, “Proxima STR resins offer reliable manufacturing, state-of-the-art properties and improved long-term performance, delivering benefits throughout the value chain.”

Daryl Allen, Proxima product development manager, said, “Proxima HPR casting resins offer thermal stability and toughness with fast and easy polycrystalline diamond compact (PDC) or tricone drillability for many downhole applications. When long fiber composite performance is required, Proxima ACR infusion resins offer exceptional performance with fiberglass and carbon fiber. These bring improved thermal stability, corrosion resistance and reliability when compared to standard composite materials. Both the HPR and ACR systems provide superior materials that solve today’s downhole challenges.”

Materia supports its customers with application engineering services provided from its state-of-the-art prototyping and polymer testing facility in Pasadena, CA.

In the Arendal Yard in Gothenburg, Sweden, Apply Emtunga is building the offshore accommodation modules to the oil rig projects Martin Linge and ETAP. As the living quarters are to be the safest place on a rig Apply Emtunga puts a lot of effort into creating maximum safety. One way to ensure safety is to use Roxtec cable and pipe transits.

The nine-floor high living quarters of Martin Linge (photo) are delivered as a complete integrated accommodation module from Gothenburg. It has three A60 fire rated divisions and an H60 fire rated bulkhead as partition towards the production and processing areas. The complex contains offices and meeting areas as well as cabins equipped with TV, Internet and bathroom. There are also facilities such as a little hospital, a kitchen, a dining room and two TV rooms as well as a music room and a gym.

Certificates showing reliability

“We use Roxtec Sleev-it fire penetration seals for all plastic pipes with drinking water and hot water. The reason for choosing Roxtec is that it was the only supplier that could present the required fire protection certificates. Everything in this project must have a minimum lifetime of 30 years,” says piping engineer Mattias Öhrn at Apply Emtunga.

The living quarters of Martin Linge will under normal conditions house 75 people, but can if necessary house up to 124 people. The building will in total weigh approximately 2,000 tons when it is ready to be shipped on a barge to the platform off the coast of Norway.

Simplicity and efficiency

The living quarters for the ETAP project are, on the other hand, delivered as several smaller units directly to the rig off the coast of Scotland for final installation into an integrated unit on the platform. In this project, the fire rated plastic pipe penetration seals used are the Roxtec RS PPS/S. Ulf Efraimsson of pipe installation contractor Assemblin, is very satisfied with the Roxtec contribution: “It is easy to work with Roxtec sealing solutions and they work perfectly.”

The Ministry of Petroleum and Energy has awarded five licenses to Statoil in the 23rd licensing round, four as operator and one as partner.

“The Norwegian continental shelf (NCS) is the core of Statoil’s business, and we are very pleased with the award in the 23rd licensing round, which will strengthen our exploration portfolio. Gradually opening up new areas is crucial for us to maintain profitable and high-level production up to and beyond 2030,” says Arne Sigve Nylund, Statoil’s executive vice president for Development & Production Norway.

The award covers five commitment wells – one in the vicinity of Statoil’s existing position, and four in the southeastern part of the Barents Sea, providing access to interesting acreage in a new area on the NCS.

“We will now be able to explore a very interesting area in the Barents Sea. There is always uncertainty related to probability of discovery in new areas. But if we make a discovery, it may involve considerable resources. Exploring in such areas and making substantial discoveries are vital if the NCS is to maintain its production,” says Jez Averty, Statoil’s senior vice president for exploration on the NCS.

“We have built on our 40 year-long history in North Norway, and our long experience from Barents Sea exploration. A large Statoil team has worked for 24 months to improve this application, and I am very proud of the effort made by everyone across Statoil that has led to this award,” says Averty.

“Based on in-house work and seismic data acquisition in 2013 and 2014 Statoil is well prepared for exploration drilling. Through the Barents Sea Exploration Collaboration (BaSEC) the industry has laid the groundwork for conducting safe and cost-effective drilling. We expect to drill the first well already in 2017, and will cooperate with our partners to reach this goal,” says Averty.

“We regard this award as a great opportunity, and strongly believe that if we find sufficient resources we will be able to develop them profitably,” concludes Averty.

In the 23rd licensing round Statoil has been awarded new exploration licenses in the following areas:

• 30 % share and operator for exploration license PL859 (blocks 7335/1,2,3; 7336/1; 7434/7,8,9; 7435/9,10,11,12; 7436/10)

• 40 % share and operator for exploration license PL857 (blocks 7132/1,2,3,6; 7133/1,4; 7232/10)

• 35 % share and operator for exploration license PL855 (blocks 7324/5,6; 7325/4,5)

• 40 % share and operator for exploration license PL854 (blocks 7322/3; 7323/1)

• 20 % share for exploration license PL858 (blocks 7234/3, 6; 7235/1,2,3,4,5)

BP announced on Monday, May 16, that it has doubled its interest in the Culzean development in the UK Central North Sea, following its acquisition of an additional 16% interest from JX Nippon.

The acquisition increases BP’s interest in the development from 16% to 32%.

Image courtesy. Maersk

“We are pleased to have deepened our interest in Culzean and we look forward to helping Maersk make this important central North Sea development a success,” said Mark Thomas, BP Regional President North Sea Region. “This is a challenging time for the industry and we must continue to work together to ensure that when developments like Culzean, or other projects such as BP’s Quad 204 and Clair Ridge, come online they can be run as efficiently as possible.”

The Maersk-operated Culzean field development, which was sanctioned at the end of August last year, is expected to produce enough gas to meet 5% of total UK demand at peak production in 2020/21.

“BP has been focusing and refreshing its North Sea portfolio by bringing new fields into production, redeveloping and renewing existing producing facilities and divesting some of its more mature or less strategic assets,” Thomas added. “Our deepening in Culzean further demonstrates our commitment to supporting the development of another UK field for the future.”

Discovered in 2008, the gas condensate field has resources estimated at 250-300 million barrels of oil equivalent. Production is expected to start in 2019 and continue into the 2030s, with plateau production of 60,000-90,000 barrels of oil equivalent per day.

BP has started up a major water injection project at its Thunder Horse platform, extending the production life of one of the biggest deepwater fields in the U.S. Gulf of Mexico.

Photo credit: BP

The project, which reflects BP’s strategy of continued investment in its existing deepwater Gulf of Mexico production hubs, will boost recovery of oil and natural gas from one of the Thunder Horse field’s three main reservoirs.

Over the past three years, BP refurbished the platform’s existing topsides and subsea equipment while also drilling two water-injection wells at the site. From those wells, water will be injected into the reservoir to increase pressure and enhance production. The improvements are expected to allow the Thunder Horse facility to recover an additional 65 million barrels of oil equivalent over time.

The project is the second of five major upstream projects BP expects to bring online in 2016. It is part of BP’s plan to add approximately 800,000 barrels of oil equivalent per day of new production globally from projects starting up between 2015 and 2020.

“This project will help BP sustain high levels of oil production in the deepwater Gulf of Mexico for years to come,” said Richard Morrison, regional president of BP’s Gulf of Mexico business. “And it’s another example of BP taking advantage of targeted and cost-effective opportunities within our existing portfolio.”

The Thunder Horse platform, which sits in more than 6,000 feet of water and began production in June 2008, has the capacity to handle 250,000 barrels of oil and 200 million cubic feet per day of natural gas. The facility continued to operate while work on the water injection project was underway.

In the deepwater Gulf of Mexico, BP operates four large production platforms - Thunder Horse, Atlantis, Mad Dog and Na Kika - and holds interests in four non-operated hubs - Mars, Mars B, Ursa and Great White.

BP has two other major projects underway in the deepwater Gulf of Mexico. The Thunder Horse South Expansion project will add a new subsea drill center roughly two miles from the Thunder Horse platform. In addition, BP continues to design the Mad Dog Phase 2 project, which will develop resources in the central area of the Mad Dog field through a subsea development tied back to a new floating production hub consisting of up to 24 wells from four drill centers.

About BP

Over the past 10 years, BP has invested more than $90 billion in the U.S. - more than any other energy company. BP is a leading producer of oil and gas and produces enough energy annually to light nearly the entire country for a year. Employing about 16,000 people across the country, BP supports more than 170,000 additional jobs through all of its business activities. 

DNV GL has been awarded a contract by COSCO Shipping Company Limited (COSCO SHIPPING) of China for the installation engineering services for the BorWin gamma high voltage direct current (HVDC) converter platform.

The Dutch-German transmission system operator TenneT is developing the offshore AC/DC converter platform BorWin gamma as part of the grid connection project BorWin3. The project will provide an essential renewable offshore resource to meet increasing energy demands in Germany, as part of the German Energiewende (Energy Transition) program.

Artist's impression of the BorWin gamma HVDC platform © Petrofac

A consortium of Siemens and Petrofac has been contracted by TenneT to design, build and install BorWin gamma. COSCO SHIPPING was awarded the transportation and installation contract by Petrofac and has chosen DNV GL's Noble Denton marine services as partner to fulfill the dynamic positioning (DP) float-over job.

Pioneering technology

DNV GL’s Noble Denton marine services pioneered and developed DP float-over, a heavy module installation method using a dynamic positioning vessel, together with COSCO.

"DNV GL has jointly completed 10 installations successfully around the world with COSCO,” explains Andy Wang, project director of DNV GL - Oil & Gas Greater China. “Our experts have a solid track record in DP float-over that won the confidence of Petrofac and Siemens," he continues.

“Our investment in innovative solutions and leading technology for heavy offshore module transportation and installation has given us a long-standing reputation that led us to win this contract. We sincerely look forward to working with COSCO and the consortium partners on this important project,” says Arthur Stoddart, regional manager of DNV GL - Oil & Gas Region Greater China, Korea & Japan.

BorWin gamma: facts and figures

This project will create a few new entries to DNV GL's record book. Weighing in at a massive 18,000 metric tons, BorWin gamma will be one of the heaviest HVDC platform ever installed; moreover, it will be the first DP float-over operation in the North Sea and Europe.

The installation is expected to commence in the summer of 2018. Once completed, it will transmit approximately 900 MW of wind power, which is roughly equal to the annual electricity consumption of 1 million German households.

Scheduled to go online in 2019, the BorWin gamma platform will be installed nearly 130km off the German coast in the North Sea, at a water depth of approximately 40m. The 900 MW DC transmission will be through 320 kV cable of 160 km length.

Rowan Companies plc (NYSE: RDC) announced on May 23, an agreement with its customer, Freeport-McMoRan Oil & Gas LLC (FMOG), and FMOG's parent company, Freeport-McMoRan Inc. (Freeport), in connection with a drilling contract for the drillship Rowan Relentless, which was scheduled to terminate in June 2017.

The agreement provides that the drilling contract will be terminated immediately, and Freeport will pay Rowan $215 million in cash to settle outstanding receivables and early termination of the contract. Rowan may also receive additional contingent payments from Freeport of $10 million and $20 million, respectively, depending on the average price of oil over a 12-month period. In addition, Rowan expects to reduce its costs for the Rowan Relentless by efficient warm stacking of the rig.

Rowan Relentless. Photo courtesy: Rowan

Freeport recently announced a restructuring of its oil and gas business, which is operated through FMOG. As disclosed in Freeport's public filings, FMOG has substantial debt and has been negatively impacted by the sustained downturn in oil prices.

Tom Burke, President & CEO of Rowan, commented: "I am satisfied with this resolution given FMOG did not have any ongoing work for the Rowan Relentless. This accelerated payment provides additional liquidity to further strengthen our balance sheet and affords Rowan added flexibility as we review opportunities in this down market. The Rowan Relentless, our fourth high-specification ultra-deepwater drillship, had outstanding operational performance on this contract, delivering safe, reliable and efficient operations."

Rowan is a global provider of contract drilling services with a fleet of 31 mobile offshore drilling units, comprised of 27 jack-up rigs and four ultra-deepwater drillships. The Company's fleet operates worldwide, including the United States Gulf of Mexico, the United Kingdom and Norwegian sectors of the North Sea, the Middle East, and Central & South America. The Company's Class A Ordinary Shares are traded on the New York Stock Exchange under the symbol "RDC

The Bureau of Safety and Environmental Enforcement is continuing its investigation of the oil release from Shell Offshore Inc.’s Glider Field on May 12. The Glider Field, located approximately 97 miles south of Port Fourchon, LA, includes subsea wells and the field’s production flows to the Brutus Platform.

BSEE Gulf of Mexico Regional Director Lars Herbst formally established an Investigative Panel May 16. The seven-member panel is comprised of BSEE engineers, inspectors, and investigators. The panel will conduct a thorough investigation of the incident in order to identify the causes and any contributing issues that led to the release. The panel will make recommendations in its final report on how to strengthen existing safety and environmental management systems, and identify any reforms to existing regulations that may be needed. The focus of these recommendations is to prevent a similar incident from occurring.

BSEE approved Shell’s plan for recovery of the damaged flowline segment. A BSEE inspector is on board the recovery vessel to observe the recovery operations. All repair plans for the subsea flow lines and production systems will be submitted to BSEE for review.

Production remains shut-in from the two subsea fields that flow to the Brutus platform. BSEE will not approve production restart of these subsea fields until all safety concerns and applicable regulations have been met.

Optimus Seventh Generation, an Aberdeen headquartered behavioural change consultancy, has successfully completed the first phase of a yearlong project with BP to induct all crew and contractors into its Life Extension Project on the Eastern Trough Area Project (ETAP) in the Central North Sea.

ETAP is one of the largest and most complex developments in the North Sea, comprising nine oil and gas reservoirs, six of which are operated by BP. The ETAP Life Extension Project (ELXP) will help secure the future of the fields until 2030 and beyond.

The initial phase of the project, which commenced in Q3 2015 and was completed in Q4, involved crew members attending Optimus Seventh Generation’s Induction Plus™ workshop before mobilizing on ETAP.

Derek Smith, chief executive at Optimus Seventh Generation

The four hour induction was in collaboration with BP to include its values and project specific information, and was blended with Optimus Seventh Generation’s behavioural and motivational concepts and a commitment from delegates to demonstrate behaviours to deliver safe performance.

The second phase of the project, which commenced in October 2015 and is due for completion in August 2016, involves Optimus Seventh Generation’s behavioural coaches working alongside HSE to deliver Supervising Safety modules to the 148 personnel crossing from the flotel to the asset daily.

Derek Smith, chief executive at Optimus Seventh Generation, said: “The recent contract win strengthens our relationship with BP and we are delighted to be working with the team as they continue to invest in the North Sea with the rejuvenation of ETAP.

“Our Induction Plus™ workshop was delivered at the initial stages of the project and has continued throughout to satisfy the introduction of multiple contractors at different stages - to date this has totalled 1,110 delegates. Following this, our behavioural coaches were deployed and the contract was extended based on the coaches’ support and performance.

“In the current climate it is increasingly important that expenditure on training is focused on vital areas. At Optimus we develop bespoke programs and adapt our focus to ensure our approach is project specific, helping to guarantee optimum outcomes and success.

“Our experienced team is well equipped to deliver on the ground support for industry service companies and operators, and we are committed to ensuring safety is at the forefront of everyone’s mind in this challenging market.”

API has called on the federal government to align its offshore leasing program to reflect America’s new role as a global energy superpower and focus on the opportunities this creates for the country. API Executive Vice President Louis Finkel addressed flaws in the Bureau of Ocean Energy Management’s 2017-2022 Outer Continental Shelf Oil and Gas Leasing Program during a press briefing ahead of the Senate Energy and Natural Resources Committee hearing.

“The United States needs forward-looking energy policy,” said Finkel. “The U.S. has become the number one producer of oil and natural gas in the world thanks to development that has taken place mostly on private and state lands. At the same time, thanks to industry efforts, methane emissions are down significantly as well as carbon and other air emissions, all while energy production has been going up.”

Today, 87 percent of federal offshore areas remain off limits to oil and natural gas production. The Department of the Interior removed the Atlantic portion of the leasing program during the draft portion of the program development earlier this year, leaving only offshore Alaska as the area with the most potential for new oil and natural gas resources. However, the plan is not yet finalized, and leasing areas have not been confirmed.

“Leaving out offshore Alaska would put the U.S. at a serious global competitive disadvantage, considering that Russia, Iran, Norway and other countries are moving rapidly to develop oil and gas resources,” said Finkel. “We must continue to think ahead, explore and develop new areas to protect U.S. energy security for generations to come.

“American consumers, American businesses and future generations need energy programs from the Interior Department to align with today’s energy realities.”

Arctic offshore energy development could add 27 billion barrels of oil and 132 trillion cubic feet of natural gas to America’s proven energy portfolio and create more than 54,000 jobs across the country, according to recent studies. It’s estimated that the Beaufort and Chukchi seas have more technically recoverable oil and natural gas than the Atlantic and Pacific coasts combined.

API thanked Congress for focusing on the important issues surrounding energy and the Department of Interior’s 5-year plan.

API is the only national trade association representing all facets of the oil and natural gas industry, which supports 9.8 million U.S. jobs and 8 percent of the U.S. economy. API’s more than 650 members include large integrated companies, as well as exploration and production, refining, marketing, pipeline, and marine businesses, and service and supply firms. They provide most of the nation’s energy and are backed by a growing grassroots movement of more than 30 million Americans.

Statoil has, on behalf of the Aasta Hansteen license, decided to cancel the contract with Seadrill for the West Hercules drilling rig.

On contract with Statoil since 31 January 2013, the rig has carried out an exploration campaign offshore Newfoundland in Canada for the past 18 months.

West Hercules drilling rig (Photo: Ole Jørgen Bratland/Statoil)

According to the original plan the Aasta Hansteen license was to take over the rig in the second quarter of 2016 for a drilling campaign to be started around 1 July 2016.

In the autumn of 2015 it was decided to postpone the Aasta Hansteen field start-up one year until the last half of 2018, and consequently the field drilling program will also be postponed. One of the reasons is that it is not preferable to complete the wells too early before production start-up.

The contract for West Hercules was originally to expire on 31 January 2017.

Forum Energy Technologies Inc. has successfully delivered a number of its largest subsea Pig Launchers and Receivers (PLRs) and laydown heads to a project in North Africa.

The nine PLRs have been deployed as part of a development of nine subsea wells, which vary from four to 24 inches in size, with water depths ranging from 300 to 800 meters.

Manufactured at Forum’s Moffat subsea engineering business in Northumberland, UK, the custom-designed units will be used in the completion of flooding, cleaning, gauging, strength test, intelligent pigging and dewatering activities.

Forum Energy Technologies has delivered several of its largest PLRs and laydown heads to a North African project. Photo courtesy: Forum Energy Technologies

John Thompson, operations director at Moffat, said: “Despite the market conditions, there has been a strong and continued demand for the capabilities and expertise held in our Moffat facility. We are engineering innovative products that are benefitting clients around the globe, and this latest contract is testimony to that.

“The scope of work for the project, which included the full design, manufacture and testing of the PLRs, underlines the fully integrated system we can offer from concept through to delivery.”

In addition to their size and weight, Forum’s PLRs have other additional capabilities compared with conventional systems because they are also equipped with a remotely operated vehicle (ROV) readable subsea flow meter, a ROV operable choke valve for discharge throttling to control the pigging velocity. Forum also developed and manufactured a landing interface from the PLR’s to the pipeline end terminator (PLET) with a horizontal driverless connection system.