•    Inmarsat and RigNet sign long-term distribution agreement for Global Xpress and L-band services

•    RigNet signs significant 4-year Global Xpress capacity pre-purchase

•    RigNet acquires Inmarsat's retail energy operations

Inmarsat plc (LSE: ISAT), a leading provider of global mobile satellite communications services, and RigNet, Inc. (NASDAQ: RNET), a leading global provider of managed remote communications solutions to the oil and gas industry, has announced a wide-ranging strategic transaction involving the appointment of RigNet to distribute Inmarsat's Global Xpress and L-band services to the energy sector and the sale of Inmarsat's retail energy business to RigNet.

Under the terms of the agreement, RigNet will become a key Global Xpress distribution partner for the global energy sector and will offer Global Xpress and L-band services to RigNet's growing customer base.  In connection with the appointment, RigNet has entered into to a significant 4-year Global Xpress capacity pre-purchase.  

To further enhance the strategic value of the partnership, Inmarsat has agreed to sell to RigNet its retail energy operations, currently managed within the Inmarsat Solutions Enterprise business unit, for a total consideration of US$25 million.  The sale will include Inmarsat's microwave and WiMAX networks in the US Gulf of Mexico serving drillers, producers and energy vessel owners; its VSAT interests in Russia, the UK, the US and Canada, its telecommunications systems integration business operating worldwide, and its retail L-band energy satcoms business.  In 2012, the operations subject to the sale had total revenues of $81 million.  The overall transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close during or before the first quarter 2014.

RigNet, based in Houston, Texas, provides managed remote communication services in over thirty countries on six continents, covering over 1,100 oil and gas related sites ranging from drilling rigs to production facilities and energy vessels.  

Rupert Pearce, Inmarsat's Chief Executive Officer, said "We are excited about this partnership as it enhances the strategic positioning of both companies as we seek to address the communications needs of the global energy sector together. RigNet is the perfect partner for Inmarsat, supporting a large customer base of oil and gas VSAT customers, whom we expect to be at the forefront of the transition to Global Xpress services.  We also welcome the opportunity to work with RigNet's management team with its extensive knowledge of VSAT operations and customers.  This partnership prepares the way for a fast and successful take up of Global Xpress services in the global energy sector.'’

Mark Slaughter, RigNet's chief executive officer and president, said, "We are delighted to enter into this strategic partnership with Inmarsat.  As the two companies came together for discussions over a number of months - with RigNet evaluating high-throughput satellite providers and Inmarsat seeking a strong distribution channel into the energy market for its Global Xpress offering - it quickly became clear that this deal represented the best path forward for both companies."

"With the purchase of Inmarsat's energy broadband business and the addition of Global Xpress to our transport options, we will broaden and deepen our capabilities to serve the oil and gas industry across the life of the field from drilling through production," Slaughter added.  "This deal will enhance our services portfolio with world-class additions.  The highly-skilled staff that comes with the business will expand our team at an opportune time in the energy cycle.  Altogether, RigNet's extensive product and services portfolio tailored for the oil and gas industry, coupled with the unprecedented connectivity capabilities of Inmarsat's Global Xpress network, sets the stage for a step change in managed remote communications services to the oil and gas industry."

Trinity Advisers S.A. acted as Inmarsat's advisor and Steptoe & Johnson LLP acted as legal counsel on the transaction.

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The Bureau of Safety and Environmental Enforcement (BSEE), U.S. Coast Guard, and Walter Oil & Gas Corporation (Walter), through the Unified Command, continue to oversee and coordinate response efforts to secure the South Timbalier 220 natural gas Well A-3. Safety of personnel and protection of the environment remain the top priorities.

All available options to safely secure the natural gas well remain under consideration. Work is moving forward on all approaches. Gas detectors and high-capacity water jet fire monitors have been installed on board the Hercules 265 rig; this is for the safety of the rig and the well intervention operations which will be conducted from a near-by barge, Superior Derrick Services' "Performance."

Walter’s application for permit to drill a relief well was approved Saturday by BSEE. The Rowan EXL-3 jack-up rig, contracted by Walter, is on location at South Timbalier 220 and crews are preparing the rig for drilling. The crew is expected to begin drilling the relief well early Thursday. It is anticipated that it will take approximately 35 days to intercept the original well bore. Many factors can affect the expected schedule including weather and the intricate work of locating the target well bore at the end of the drilling process. A relief well is drilled to intercept the target well. Once intercepted, drilling mud followed by cement will be pumped into the well to secure it.

From visual observation, a sheen is no longer present in the area of the well. The Coast Guard continues to maintain a 500-meter safety zone around the site. Firefighting and other marine vessels remain onsite with personnel from Walter, Hercules, and other professional engineering contractors, and relevant federal agencies.

BSEE's investigation into the cause of the loss of well control continues in coordination with the Coast Guard.

Additional updates will be issued as information becomes available. Media inquiries and requests for additional information should be directed to 504-736-2595.

BACKGROUND:

 Walter experienced a loss of control of Well A-3 at approximately 8:45 a.m. July 23 on an unmanned platform at South Timbalier Block 220 while doing completion work on the sidetrack well to prepare the well for production. The operator reported the safe evacuation of 44 personnel from the Hercules 265 jack-up rig. Coast Guard confirmed that the leaking natural gas ignited at 10:45 p.m. CDT July 23. BSEE confirmed July 25 that the well flow subsided after a natural bridging process suppressed the fire.

CNOOC Limited (the "Company", NYSE: CEO, SEHK: 00883) announced today that its parent company, China National Offshore Oil Corporation (CNOOC) has signed production sharing contract (PSC) with Shell China Exploration and Production Company Limited (Shell) for Block 35/10 in Yinggehai Basin in the South China Sea.

Block 35/10 is located in Yinggehai Basin in the South China Sea. It covers a total area of 3,427 square kilometers with water depth of 80-110 meters.

According to the terms of the PSC, Shell will conduct 3D seismic data survey and may drill exploration wells in the block during the exploration period, in which all expenditures incurred will be borne by Shell. CNOOC has the right to participate in up to 51% working interest in any commercial discoveries in the block.

W&T Offshore, Inc. (NYSE: WTI) announced today that it has made a subsalt discovery in a deep shelf exploratory target beneath its Ship Shoal 349 "Mahogany" Field.  The SS 359 A-14 well has exceeded our expectations and is currently producing from the targeted T-Sand (in excess of 17,200' total vertical depth), at an initial flow back rate of 3,030 barrels of oil per day and 5.6 million cubic feet of gas per day, for a total of approximately 4,000 barrels of oil equivalent (Boe) per day (3,310 Boe per day net of royalty to W&T) with a flowing tubing pressure of approximately 9,400 psi surface pressure.  The T-Sand is the deepest sand discovered in this field, as there is additional pay identified in the M-Sand, N-Sand, and O-Sand, all of which represent future reserve additions to the Company.  The well also penetrated a thicker than expected P-sand interval (the main field pay sand) which will also serve as a future recompletion.  In total, the A-14 well logged over 370 feet of net oil pay, with the T-Sand accounting for 108 feet of the total net pay.  Success from the A-14 T-sand will stimulate additional drilling in 2014 to exploit the four newly discovered oil sands that were encountered in the A-14 well.  W&T holds a 100% working interest in the field.

Tracy Krohn, W&T Offshore's Chairman and CEO, stated, "Our exploration team utilized our subsalt imaging technology to identify and deliver this subsalt discovery which is a deep shelf exploration extension to our producing Mahogany Field.  This new oil discovery is part of our organic growth plan and adds substantial value to the Company.  We found a very high quality oil sand in the T-sand reservoir with great flow characteristics.  Another key value driver on this project is our ability to produce this discovery immediately through our existing infrastructure at Mahogany.  We are evaluating additional targets in this highly prolific field based upon our continuing success and look forward to our next exploratory well at Mahogany, the A-15 well, which should begin drilling in in September."    

The platform rig at Mahogany is currently working on a major recompletion in the A-4 well, designed to bring a behind pipe P-Sand interval into production at an expected rate of 1,000 Boe per day, net of royalties to W&T with an anticipated production date of August or September.  Following the A-4 recomplete we expect to spud the A-15 subsalt exploratory well, a multi-horizon target that is anticipated to encounter multiple stacked oil sand targets.  The A-15 well is scheduled to reach total depth near the end of 2013 or early 2014 with a target IP rate of 1,390 Boe per day, net of royalty to W&T.  The unrisked reserve potential associated with the A-15 well is anticipated to be in the range of 1.8 to 6.2 million Boe. 

Historic Auction Leases Nearly 165,000 Acres Offshore Rhode Island and Massachusetts for Wind Energy Development, Advances President’s Climate Action Plan

 As part of President Obama’s comprehensive plan to move our economy toward domestic clean energy sources and cut carbon pollution, Secretary of the Interior Sally Jewell and Bureau of Ocean Energy Management (BOEM) Director Tommy P. Beaudreau on Wednesday, held the nation’s first-ever competitive lease sale for renewable energy in federal waters.  

 The provisional winner of yesterday’s lease sale, which auctioned two leases for a Wind Energy Area of 164,750 acres offshore Rhode Island and Massachusetts for wind energy development, is Deepwater Wind New England, LLC. When built, these areas could generate enough combined energy to power more than one million homes.

 “When you think about the enormous energy potential that Atlantic wind holds, this is a major milestone for our nation,” said Secretary Jewell. “A lot of collaboration and thoughtful planning went into getting to this point, and we’ll continue to employ that approach as we move forward up and down the coast to ensure that offshore wind energy is realized in the right way and in the right places. Offshore wind is an exciting new frontier that will help keep America competitive, and expand domestic energy production, all without increasing carbon pollution.”

 The Wind Energy Area is located 9.2 nautical miles south of the Rhode Island coastline and has the potential to support 3,395 megawatts of wind generation. BOEM will hold its next competitive lease sale for offshore wind on Sept. 4, which will auction nearly 112,800 acres offshore Virginia, and is expected to announce additional auctions for Wind Energy Areas offshore Massachusetts, Maryland, and New Jersey later this year and in 2014.

 Maps for these areas are available on BOEM’s website.

 Today’s auction is the result of a coordinated strategic plan to accelerate the development of offshore wind resources that was unveiled in February 2011 by former Secretary of the Interior Ken Salazar and former Secretary of Energy Steven Chu. As part of a ‘Smart from the Start’ program for expediting commercial-scale wind energy on the federal Outer Continental Shelf, Interior identified Wind Energy Areas well suited for commercial development with minimal impacts to the environment and other important uses. Efforts to spur responsible development of this abundant renewable resource are part of a series of Administration actions to speed renewable energy development offshore and onshore by improving coordination with state, local and federal partners.

 As part of President Obama’s comprehensive Climate Action Plan, he challenged Interior to re-double efforts on the renewable energy program by approving an additional 10,000 megawatts of renewable energy production on public lands and waters by 2020.

 Since 2009, Interior has approved 46 wind, solar and geothermal utility-scale projects on public lands, including associated transmission corridors and infrastructure to connect to established power grids. When built, these projects could provide more than 12,700 megawatts – enough energy to power more than 4.4 million homes and support over 17,000 construction and operations jobs.

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

 “Each of these renewable energy lease sales are significant steps forward in the President’s all-of-the-above energy strategy and call for action on climate change,” said Director Beaudreau. “Harnessing the enormous potential of offshore wind will create jobs, increase our energy security and provide abundant sources of clean renewable power.”  

 BOEM auctioned the Wind Energy Area offshore Rhode Island and Massachusetts as two leases, referred to as the North Lease Area (Lease OCS-A0486) and the South Lease Area (Lease OCS-A0487). The North Lease Area consists of about 97,500 acres and the South Lease Area covers about 67,250 acres. For a map of the Wind Energy Area, click here. The sale received $3,838,288 in high bids. The auction lasted 1 day, consisting of 11 rounds before determining the provisional winner. In addition to Deepwater Wind New England, LLC, the following companies participated in the auction: Sea Breeze Energy, LLC; and US Wind Inc.

 “Now that we have identified Deepwater Wind as the provisional winner of this auction, we look forward to executing the lease and reviewing their Site Assessment Plan for the lease area,” said Director Beaudreau.  

 Following the auction, the Attorney General, in consultation with the Federal Trade Commission, will have 30 days in which to complete an antitrust review of the auction. Shortly thereafter, BOEM will send unsigned copies of the lease form to the winning bidder, who will have 10 days to sign and return the lease, file required financial assurance, and pay the balance of the winning bid.

 Each lease will have a preliminary term of 6 months in which to submit a Site Assessment Plan to BOEM for approval. A Site Assessment Plan describes the activities (e.g., installation of meteorological towers and buoys) a lessee plans to perform for the assessment of the wind resources and ocean conditions of its commercial lease.

 After a Site Assessment Plan is approved, the lessee will have up to 4 and 1/2 years in which to submit a Construction and Operations Plan (COP) for approval, which provides a detailed plan for the construction and operation of a wind energy project on the lease. After the COP is approved, the lessee will have an operations term of 25 years.

Technip was awarded by Chevron North Sea Ltd a substantial⁽¹⁾ engineering, procurement, installation and construction (EPIC) contract for the Alder field. Chevron is developing the Alder field as a subsea tieback to the Britannia Bridge Link Platform (BLP). This field is located in the central North Sea, about 200 kilometers North-East of Aberdeen, Scotland, at a water depth of approximately 150 meters.

The contract will cover a wide scope of work, from engineering to manufacturing and installation:

•    the detailed design and pipelay of a 28-kilometer 16” pipe-in-pipe system,

•    the installation of a 28-kilometer hybrid umbilical⁽²⁾,

•    various subsea works including the installation of a manifold⁽³⁾ structure including HIPPS⁽⁴⁾, subsea isolation valve structure, valves and spoolpiece⁽⁵⁾ components.

Technip’s operating center in Aberdeen will execute the contract, which is scheduled to be completed in the second semester of 2015. Genesis⁽⁶⁾ will complete the detailed design workscope and Technip’s spoolbase in Evanton, Scotland, will fabricate the pipe-in-pipe. DUCO Ltd, Technip’s wholly-owned subsidiary in Newcastle, England, will manufacture the umbilical. Vessels from the Group’s fleet will be used for the offshore campaign, including its newest state-of-the-art pipelay vessel, the Deep Energy.

Bill Morrice, Managing Director of Technip in the United Kingdom, said: “We are delighted to be reigniting our relationship with Chevron with this substantial contract that will allow us to support them in bringing the Alder field onstream. Technip has a proven track record in delivering EPIC contracts of this scale and our unique vertical integration is an added-value advantage for our clients as our capabilities cover the entire value chain for subsea infrastructures. The UK Continental Shelf is still an exciting place to be with many major fields being developed both around traditional developments and in deeper waters West of Shetland, a market Technip is keen to maximize opportunities.”

⁽¹⁾ For Technip, a “substantial” subsea contract is ranging from €100 to €250 million.

⁽²⁾ Umbilical: An assembly of steel tubes and/or thermoplastic hoses which can also include electrical cables or optic fibres used to control subsea structures from a platform or a vessel.

⁽³⁾ Manifold: a piece of pipe with several lateral outlets and/or inlets for connecting one pipe with 3 others.

⁽⁴⁾ HIPPS: High Integrity Pressure Protection System

⁽⁵⁾ Spoolpiece: A short section of pipe for the connection of two subsea structures.

⁽⁶⁾ Genesis is a market-leading engineering company focused on providing engineering and technical services to the global upstream oil and gas industry. It is part of the Technip Group.

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The Bureau of Ocean Energy Management completed its required evaluation to ensure that the public receives fair market value for tracts leased as part of Central Gulf of Mexico Oil and Gas Lease Sale 227, which was held on March 20, 2013.

After extensive economic analysis, BOEM has awarded 307 leases on tracts covering 1,648,831 acres to the successful high bidders who participated in the sale, which made 7,299 unleased blocks covering about 38.6 million acres available offshore Louisiana, Mississippi and Alabama. The accepted high bids are valued at $1,199,052,037.

The terms of Sale 227 continued a range of incentives to encourage diligent development and ensure a fair return to taxpayers — including an increased minimum bid for deepwater tracts, escalating rental rates and tiered durational terms with relatively short base periods followed by additional time under the same lease if the operator drills a well during the initial period.

BOEM increased its minimum bid requirement in deepwater to $100 per acre, up from $37.50 in Central Gulf of Mexico lease sales prior to 2012. Rigorous historical analysis showed that leases that received high bids of less than $100 per acre have experienced virtually no exploration and development activities.

During the sale, 52 companies submitted 407 bids totaling $1,595,397,446 on 320 tracts. A total of $1,214,675,536 was received in high bids. BOEM rejected thirteen high bids, totaling $15,623,499 after determining that the value of those bids was insufficient to provide the public with fair market value for the tracts.

BOEM will reoffer these tracts as part of the next Central Gulf of Mexico sale, which is currently scheduled for March of 2014.   

The highest bid accepted was $81,787,999, submitted by Samson Offshore, LLC and Statoil Gulf of Mexico LLC for Walker Ridge, Block 271. The tract is at depths greater than 5,249 feet (1600 meters) and received two bids.

The sale’s results reflect strong, continuing industry interest in the Gulf of Mexico and President Obama’s commitment to expand oil and natural gas production safely and responsibly -- reducing our dependence on foreign oil and supporting American energy jobs.

As part of the Obama Administration’s all-of-the-above energy strategy, domestic oil and gas production has grown each year the President has been in office, with domestic oil production currently higher than any time in two decades and natural gas production at its highest level ever. Renewable electricity generation from wind, solar, and geothermal sources has doubled and foreign oil imports now account for less than 40 percent of the oil consumed in America – the lowest level since 1988.

For more information on Sale 227 go to www.boem.gov/sale-227/.

Seadrill Limited ("Seadrill") has signed a contract with Chevron China Energy Company for the newbuild ultra-deepwater drillship West Tellus in support of Chevron's affiliated global exploration program. The contract commences in China immediately upon shipyard delivery and thereafter relocates to Liberia. The agreement is for a period of 180 days with revenue potential of approximately US$150 million inclusive of bonus potential and mobilization.

Additionally, Seadrill is currently engaged in advanced discussions with a major oil company for a multi-year contract commencing in direct continuation of the Chevron contract. 

The West Tellus is a 6th generation drillship currently under construction for Seadrill at Samsung Heavy Industries shipyard in Geoje, South Korea, with expected delivery in September 2013. The rig will be outfitted to work in up to 10,000' of water and is capable of water depths up to 12,000' and drilling depths up to 37,000'. 

Per Wullf, CEO and President of Seadrill Management Ltd. says in a comment, "The multi jurisdiction contract for West Tellus demonstrates our willingness and ability to contract opportunistically and strategically when it is justified. The initial contract on West Tellus allows us to expand a long standing relationship with a key customer in the ultra-deepwater segment while also providing Seadrill the opportunity to place the West Tellus in West Africa, ready for a follow on contract."

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

The Petroleum Extension Service (PETEX™) at The University of Texas at Austin is proud to announce the launch of its newInteractive Offshore Oil Rig. This innovative, 3-D e-product provides a unique learning perspective on the inner workings of a semi-submersible oil rig, one of the most intricate and powerful units used in offshore drilling operations.  PETEX is a leading instructor of oil and gas industry workers in Texas and around the world.

The Interactive Offshore Oil Rig gives users an inside view to see and hear about each component of the rig—what it does and where it is located-- and lets users zoom in for expanded views. Options include visuals and detailed audio describing ten different areas of the rig including a 360 degree Rig View, Power and Hoisting Equipment, Circulating and Cementing Equipment and much more.

The product includes an online assessment that tests the learning progress of the user. A passing score earns users a Completion Certificate from PETEX and The University of Texas at Austin. Developed by PETEX Learning Specialist Itzel McClaren with assistance from the university's Faculty Innovation Center at the Cockrell School of Engineering, this product is the result of a true collaboration between scholars and oil and gas professionals.

PETEX's Director Zahid Yoosufani says, "The Interactive Offshore Oil Rig is the only product of its kind on the market for offshore drilling and is especially useful for oil and gas industry personnel seeking a better understanding of the individual parts of this extremely complex mechanical unit. With thousands of offshore rigs actively drilling for oil and gas around the world, effective training is now more critical than ever."

The Interactive Offshore Oil Rig is available for subscription and licensing purchases. For more information, contact us online at www.petex.org or by phone at 1-800-687-4132. You may also try the demo at www.petex.org.

Helix Energy Solutions Group, Inc. (NYSE: HLX) announces that it is proceeding with the construction of a second newbuild semisubmersible well intervention vessel, to be named the Q7000. Owen Kratz, Helix’s President and CEO, stated, “Based on strong market demand and our proven success for delivering specialized deepwater well intervention services, we are moving forward with the Q7000, which is consistent with our strategy of expanding our well intervention fleet around the world.”

The Bureau of Safety and Environmental Enforcement (BSEE) and the U.S. Coast Guard are continuing to oversee Walter Oil & Gas Corporation’s response efforts to secure the natural gas well and extinguish the subsequent fire that started after the operator’s loss of well control Tuesday.

Both BSEE and Coast Guard conducted multiple overflights on Wednesday to supplement responsible party flights to maintain aerial surveillance of the scene. The natural gas well continues to fuel the fire on the rig. The derrick and drill floor structure has collapsed over the rig, and a very light sheen that dissipates quickly has been observed in the ocean.

Photo: Hercules 265 Jack-Up Rig 

 A water curtain is being applied by a fire-fighting vessel to the rig. A water curtain’s purpose is not to extinguish the fire, but to provide heat protection to the rig. Coast Guard Cutter Pompano and Cutter Cypress are on location enforcing the safety zone and assessing the changing conditions on the rig.

BSEE expects Walter Oil & Gas to submit a permit application to drill a relief well this evening. The permit, which would include details on the proposed well and the casing and cementing programs, must be approved by BSEE engineers before drilling could commence. BSEE continues to review and approve all operational plans and procedures for the response. BSEE's priority throughout this operation is the safety of the offshore workers and the protection of the environment.

BSEE and the Coast Guard have stood up a Command Center to respond to the event, which is happening 55 miles offshore Louisiana in 154 feet of water. Walter Oil and Gas Corporation experienced a loss of control of Well A-3 at approximately 8:45 a.m. July 23 on an unmanned platform at South Timbalier Block 220 while doing completion work on the sidetrack well to prepare the well for production. The operator reported the safe evacuation of 44 personnel from the Hercules 265 jack-up rig. Coast Guard confirmed that the fire began at 10:45 p.m. CDT July 23.

BSEE's investigation into the cause of the loss of well control is underway in coordination with Coast Guard. A Joint Information Center will be stood up beginning Thursday morning along with the Unified Area Command

 BSEE and the U.S. Coast Guard confirmed this morning, July 25, that the leaking natural gas well 55 miles offshore Louisiana has bridged over and the gas flow stopped. The fire has decreased to a small flame fueled by residual gas at the top of the well. Bridging is a well condition where small pieces of sediment and sand flow into the well path and restrict and ultimately stop the flow.

Both BSEE and Coast Guard have conducted overflights to visually confirm. BSEE and Coast Guard will continue overseeing response efforts until the event has come to a complete and safe resolution which includes securing the well. 

Apache Corporation (NYSE, Nasdaq: APA) announces it has agreed to sell its Gulf of Mexico Shelf operations and properties to Fieldwood Energy LLC (Fieldwood), an affiliate of Riverstone Holdings, for cash proceeds of $3.75 billion. In addition, Fieldwood will assume all asset retirement obligations for these properties, which, as of June 30, 2013, Apache estimated at a discounted value of approximately $1.5 billion. Apache will retain 50 percent of its ownership interest in all exploration blocks and in horizons below production in developed blocks, where high-potential deep hydrocarbon plays are being tested.

"This transaction is an important step toward rebalancing our portfolio," said G. Steven Farris, chairman and chief executive officer. "At the end of this process, we expect Apache to have the right mix of assets to generate strong returns, drive more predictable production growth, and create shareholder value.

"Apache has had a great run on the Gulf of Mexico Shelf over the last 30 years, and the Shelf region and staff have played a vital role in making Apache the company it is today.  As our company has evolved, however, so have our investment priorities," Farris said. "Since 2010 we have increased our focus in North America on capturing and developing a deep inventory of onshore assets, where we have been generating exceptional production growth at attractive rates of return. The shallower horizons in the Shelf have matured to the point that dependable production growth is more difficult to achieve than from  our onshore liquids plays. We remain excited about the potential associated with the emerging plays under existing salt domes, which is why we retained 50 percent of the deep rights on 406 blocks held by production and 50 percent of all rights in 146 primary term blocks."

Apache previously announced plans to divest $4 billion in assets by year-end 2013 as part of its ongoing portfolio assessment and to focus on more recently acquired properties. The company intends to use proceeds to reduce debt and enhance financial flexibility and to repurchase Apache common shares under a 30-million-share repurchase program authorized by the Board of Directors earlier this year.

Transaction Terms and Closing Conditions

The effective date of the transaction is July 1, 2013. The sale is subject to customary regulatory approvals and closing conditions and is projected to close September 30, 2013. Apache will operate the properties during a transitional period.

Fieldwood has agreed to offer employment to substantially all of Apache's GOM Shelf employees.

Goldman Sachs & Co. acted as financial advisor and Bracewell & Giuliani LLP served as legal advisor to Apache on the transaction.

Apache's Shelf Portfolio

Apache's Shelf portfolio — the largest operated asset base in Gulf waters to 1,000 feet deep — comprises more than 500 blocks with 1.9 million net acres and year-end 2012 estimated proved reserves of 133 million barrels of oil and natural gas liquids and 636 billion cubic feet of natural gas. In the first quarter of 2013, the fields averaged net production of approximately 50,000 barrels of liquid hydrocarbons and 254 million cubic feet of natural gas per day.

"Employees in Apache's Gulf of Mexico Shelf Region are the most experienced, technically knowledgeable, and dedicated group in the industry. This team  is committed to safe and environmentally responsible operations during the transition and in the new ownership structure," Farris said.

Apache's ratio of incidents of noncompliance per inspected component — a key measure of offshore safety performance — has been at or better than industry average for the last five years. In 2012, Apache was one of the first Gulf of Mexico operators to voluntarily submit an audit of its Safety Environmental Management System (SEMS) to the Bureau of Safety and Environmental Enforcement. SEMS focuses on operating procedures, hazard analysis, mechanical integrity and training for all assets and personnel operating in the Gulf of Mexico.

Offshore Installation Services Ltd (OIS), an Acteon company, has launched a new service designed to help operators fulfill their suspended well decommissioning plans. Wellintel is a well data collection and review service that gathers and prepares the information operators require before they start a decommissioning program. OIS engineers with extensive well abandonment knowledge and detailed understanding of the entire decommissioning process will deliver the service.

Operators having an up-to-date well inventory and regulatory documentation ready for submission to DECC and the HSE can take advantage of commercially efficient opportunities such as multi-client abandonment campaigns that may arise at short notice.

Decommissioning offshore assets is a key challenge for the UK’s offshore oil and gas industry. The UK government’s Department of Energy and Climate Change (DECC) is prompting operators with assets that require permanent abandonment to expedite the process.

For many operators, the main obstacles are lack of time or limited in-house resources to deal with the critical tasks required to prepare for decommissioning. The Wellintel team will help by collating well-specific data, such as end-of-well reports and well status diagrams, and the initial assessment of well categorization in accordance with O&G UK guidelines, which is required to identify which assets are available and suitable for vessel-based abandonment, thereby easing the burden on operators.

The Wellintel service can also support operators with preparing the submissions to DECC and the HSE that are required before starting a decommissioning program. These submissions include the oil pollution emergency plan, PON 5 (application to abandon a well), PON 15f (permit to use and/or discharge chemicals during well abandonment), the Marine Coastal Access Act licence and the HSE notification.

Since its launch, Wellintel has attracted a high degree of interest amongst North Sea operators who recognize the value of this approach. One operating company has already started using the service as part of its decommissioning strategy.

One of the key features of the proposition is that the costs of the Wellintel service are deductible from future abandonment work by OIS, as Tom Selwood, OIS vice president commercial and business development, explained. “Once the Wellintel process is complete, OIS can provide well abandonment solutions, including vessel charter, marine management, equipment and personnel, and full offshore project management for any suspended wells that are suitable for vessel-based abandonment. Operators that use OIS for back-of-boat suspended well abandonment work within 18 months of using Wellintel can recover the costs incurred against the project management fees associated with the well abandonment project.”

Claxton Engineering Services Ltd, an Acteon company, successfully responded to an urgent call to mend a rig diverter’s connection by providing a 30” dual seal overshot, a 30” casing cutter and personnel to oversee operations and requirements within 48 hours.

During this time period, Claxton modified and dispatched the necessary equipment for its client. Under normal circumstances, this equipment is ordered a month in advance by the drilling contractor during well planning.

The connection to the rig diverter prohibited the rig from operating. Claxton modified the overshot by cutting it to the precise size and welded the connection on top creating a pressure seal.

Additionally, Claxton supplied cold-cutting equipment to ensure the space-out was correct for the overshot. The wellhead fit seamlessly after the drilling and casing operations had been completed which will provide continuous flow.

“As a core value, Claxton strives to be a responsive company within the oil and gas industry,” said Owen Lewis, Claxton project engineer. “We are prepared and willing to assist our clients with any problems that arise, and we are quick and efficient in completing the job.”

A mere 25 hours after the deck for the Gudrun platform left Aibel's shipyard in Haugesund, the deck had been lifted into place on the steel undercarriage in the North Sea.

The platform deck was positioned on the undercarriage at 17:43 on Thursday, July 18, 2013.
(Photo: Kjell-Arve Tysnes/Statoil)

"The operation has been safe and efficient with favorable sea conditions," says Øyvind Haugsdal, transport and installation manager for the Gudrun project. He has been planning this lifting operation for the last three and a half years:

"It was an incredible feeling to watch it all go as planned," he says.

The platform deck was positioned on the undercarriage at 17:43 on Thursday. The lifting operation marks one of the most important milestones in the project.

Gudrun reached its full height of 232.5 meters when the flare tower was lifted into place on Friday morning.

The platform deck and undercarriage will now be connected and the platform will be prepared for production.

On time - under budget

"The most significant milestone in the project is the start of production in the first quarter of next year. We will achieve that too," says Øystein Michelsen, executive vice president for Development & Production Norway in Statoil.

The field development is on track to cost around NOK 2 billion less than the original investment framework of NOK 21 billion. There are several reasons for this:

"We were given good prices when we awarded the contracts in 2010, in a market characterized by the financial crisis," says Margaret Øvrum, executive vice president for Technology, Projects and Drilling in Statoil.

This was a win-win situation. The Gudrun license received favorable pricing and the suppliers received crucial contracts.

"Just as important were the strict change controls during the project and strong commitment across the entire Gudrun organization in order to meet this savings target. All the different disciplines have contributed," Øvrum says.

The decking contract (engineering work, construction and procurement) was awarded to Aibel.

The engineering work was carried out in Norway and Singapore. Two of the deck modules were constructed at Aibel's shipyard in Thailand and one at the shipyard in Haugesund, with supplies from Poland.

The deck was also connected in Haugesund. The helicopter deck came from China and the living quarters were supplied by Apply Leirvik.

The steel undercarriage, which has already been ready at sea for nearly two years, was supplied by Kværner Verdal. Transport and installation were performed by the Italian company Saipem.

With the latest seismic and drilling technologies, the Cardamom development is expected to deliver new production from the deep waters of the Gulf of Mexico to existing infrastructure

Nearly two decades after setting a world water-depth record for drilling and production, Shell’s Auger tension-leg platform is still playing a central and innovative role in the company’s deep water Gulf of Mexico portfolio – currently producing some 55,000 barrels oil equivalent (boe) per day (Shell share ~30,000 boe per day), and acting in the future as the host platform for the Cardamom subsea development. The Cardamom discovery well also set records three years ago, for subsurface length and depth.

More than a half mile down, Shell is connecting Cardamom wells back to Auger - work that will involve retrofitting the platform and a production shut-in at Auger, which should restart in the fourth quarter of 2013. Once online in 2014, Cardamom (100% Shell share) is expected to produce at a peak rate of 50,000 boe per day.

"The Gulf of Mexico remains an important part of Shell’s portfolio and strategy, and it is expected to generate substantial growth over the next several years,” said John Hollowell, Executive Vice President for Deep Water, Shell Upstream Americas. “Cardamom is a great example of using existing infrastructure to increase oil and gas production in a less capital intensive way.”

In its lifetime, the Auger platform has produced more than 300 million boe.