Harsher environments, life extension and more demanding regulatory and business requirements are some of the challenges the offshore industry faces. However, a complete software tool to evaluate the full range of potential hazards and associated risks has until now not been available. Safeti Offshore, just released, is a quantitative risk analysis software solution based on DNV’s more than three decades of experience within such analysis.

Safeti Offshore encapsulates DNV’s vast experience and knowledge within offshore quantitative risk analysis (QRA),contained within one all-encompassing software application to evaluate the full range of potential hazards.

 The QRA of offshore installations is a complex process and there are specific challenges resulting from congested layouts and limited separation of equipment. A spectrum of analysis methods exists, ranging from spread-sheets – with inherent validation and traceability problems – through to detailed and expensive computational fluid dynamics (CFD) simulations typically addressing specific issues rather than assessing broader risks.

“Safeti Offshore has been designed and developed specifically to support state-of-the-art, complex offshore QRA,” says DNV Software Director of Operations Risk and Reliability, Dr Nic Cavanagh.

“A methodology has been developed by experienced risk analysts to meet the requirements of international standards such as ISO 17776 and Norsok Z-013 and this has been integrated into Safeti Offshore. All credible hydrocarbon accident scenarios are considered, including fire, explosion, toxics and smoke. In addition, detailed escalation analysis is provided to model potential domino effects and evolving safety function impairment,” he says.

Typical offshore QRA risk metrics, such as potential loss of life (PLL), are summarised in a database allowing flexible reporting and charting. An interactive event tree allows navigation and drill-down on the detailed risk results. In addition, a 3D visual representation of the facility allows the key consequence and risk results to be viewed in context. In this way, Safeti Offshore can address key questions such as design layout alternatives, fire and blast protection, escape and evacuation measures and other potential risk reduction measures.

“Safeti Offshore is built upon the same software architecture as DNV Software’s world-leading onshore analysis packages, Phast and Safeti. In this way, we can leverage more than 30 years of mathematical modelling and software engineering expertise to the market with best effect,” says DNV Software Managing Director, Are Føllesdal Tjønn.

For more information about Safeti and Safeti Offshore: www.dnvsoftware.com/safetioffshore

Exploration has awarded a contract to BMT Scientific Marine Services Inc (BMT) to provide an Environmental and Facility Monitoring System (EFMS) for the Delta House semi-submersible project operating in the Gulf of Mexico.

The EFMS monitors, logs and displays data in real-time on the local environment and facility motions. It archives the data for assessing the facility’s integrity over time and interfaces with the other platform control systems. The EFMS is comprised of a computer console, topside and subsea remote sensor packages, BMT’s proprietary data acquisition system and custom HMI user display screens. BMT brings significant experience to this project, having previously provided an EFMS for LLOG’s Gulf of Mexico WhoDat semi-submersible FPU.

Pacific Rubiales Energy Corp. (TSX: PRE; BVC: PREC; BOVESPA: PREB) has confirmed an oil discovery in the Bilby-1 exploration well, drilling on block S-M-1166, in the Santos Basin, offshore Brazil.

The Bilby-1 well was drilled as part of an agreement announced by the Company on September 18, 2012, as a minimum work commitment for five offshore blocks (S-M-1101, S-M-1102, S-M-1037, S-M-1165 and S-M-1166), where the Company holds a 35% participating interest (subject to approval by Brazil's Agência Nacional do Petróleo, Gás Natural e Biocombustíveis ("ANP")).

Two additional exploration wells have been drilled on the blocks as part of the agreement, the Kangaroo-1 well, previously announced as an Eocene light oil discovery, and the Emu-1 well which was plugged and abandoned after failing to discover hydrocarbons in economic quantities.

As announced by the operator of the blocks, Karoon Gas Australia Ltd. (ASX: KAR) (see www.karoongas.com.au), the Bilby-1 well has been drilled to a measured depth of 3,854 meters (approximately 12,645 feet).  Oil is contained within an inter-bedded sand and shale interval of late Cretaceous age, confirmed from sampling over a 200 meter (656 foot) gross section so far.  The discovery has been verified by wireline petrophysical, pressure data, fluid sampling and mudlog analysis.  The well is positioned approximately 150 meters (492 feet) down dip from the trap crest (as interpreted on seismic data).

Wireline testing of the discovery is continuing, with full results expected over the coming week.  The well will then drill ahead as planned to an expected measured depth of 4,573 meters (approximately 15,000 feet).

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

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

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

OilCareers.com and Expro reveal industry shift to permanent positions

OilCareers.com has released statistics suggesting that staff roles offered by employers in the Gulf of Mexico have increased almost sixteenfold in the last three years.

Statistics show that the margin between contract and staff positions, that in 2009, reflected an equal split, now reveal a shift to five times as many staff than contract roles, equating to 80% of job types currently registered on OilCareers.com.

This comes as part of a move towards longer term recruitment strategies to encourage experienced personnel to the area as highlighted by Pauline Redpath, Global Recruitment Manager at Expro, who commented: “Due to the increasing difficulties facing the sector in recruiting workers equipped with the desired skills, companies including Expro are now focussed on capturing and retaining new talent and developing them into our leaders of the future - this has meant a move away from using temporary or contract workers.

“Other factors such as the aging workforce may also have a part to play in a higher percentage of new permanent staff being recruited in trainee programmes geared at reducing the potential skills gap in the coming years.”

Vacancies most in demand in the Gulf of Mexico are shown to be; qualified designers, engineers (electrical, subsea hardware engineer, exploration reservoir, mechanical) and seismic interpreter/geoscientists. While primary skill sets of applicants are in line with these roles, it is clear that there is still a genuine need for manpower in the region and across the US.

This desire for personnel continues to grow particularly in relation to deepwater developments in the Gulf of Mexico, as well as the shale oil and gas revolution in North America. Activity in natural gas has also cemented Houston as the top location for vacancies in the US, with Texas oil production seeing a 25% increase last year in comparison with 2011 being named  the top gas producing state in 2012.

Mark Guest, managing director of OilCareers.com said: “Oil and gas majors view the on-going skills shortage as the biggest threat to the sector and it is clear that they are stepping up efforts to develop strategies that help present the energy sector as a secure, assured and affluent career path to individuals to best ensure the constant flow of skills needed to fulfil the potential of their assets.”

The natural gas revolution has led to comments that the US may be close to energy self-sufficiency by 2030 from Bob Dudley, chief executive officer for BP, with President Obama also supporting this view to independence stating that the shale gas boom has led to cleaner power and that his administration will be accelerating new oil and gas permits.

With 94% of applications in the US coming from American nationals, this attractive outlook and increased view to self sustainability is likely to mean fewer US residents pursuing the higher salaries on offer in countries such as Africa and the Middle East. It will also help to attract talent from overseas.

Mark Guest added: “Ever-increasing activity and constantly evolving technologies in the Gulf of Mexico and across the wider US is extremely promising and it has never been more important for oil and gas businesses to implement robust recruitment strategies in order to attract the talent needed to sustain their efforts.

“It is up to employers to make the oil and gas industry an attractive proposition to new entrants by highlighting the wide range of possible roles within the industry, from engineering and geosciences to project control, health and safety and drilling positions.

“Many companies already offer acclaimed graduate and apprenticeship schemes to attract young people into the industry, as well as offering training and development programmes to ensure constant development of staff in line with industry breakthroughs. However, as The Global Oil & Gas Workforce Survey: Expectations for hires and pay rates in the oil and gas industry (H1) 2013 revealed 20% of recruiters highlight the biggest training issue as the lack of skilled trainers. This suggests a specific need to attract staff between the ages of 35-55 with over five years experience, to ensure a constant flow of knowledge and support to the existing workforce.”

Reference Material:

http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/21896749

http://www.americanchemistry.com/shalegasimpact 

Wood Group Mustang is providing engineering and design services for oil & gas production facilities planned for offshore developments in seven locations around the world: the North Sea, West Africa, Brazil, Canada, Australia, Mediterranean Sea and Gulf of Mexico. These services are being provided for shallow water fixed platforms and deepwater floating facilities. The planned facilities provide the potential to add approximately 1.3 million BPD oil & gas capacity to the world energy supply. The range of services Wood Group Mustang is providing is conceptual studies, pre-front-end engineering and design (pre-FEED), FEED, detailed engineering, and follow-on work.

Additionally, Wood Group Mustang's Automation and Control Business Unit is currently providing full system integration, FEED, or consulting for eight offshore facility projects, three of which are full system integration in deepwater developments.

"Over the next 25 years, energy demand worldwide is projected to grow by about 35%. The purpose of Wood Group Mustang's work ultimately is to help increase the standard of living around the world by designing oil & gas facilities that provide reliable sources of energy.  We are pleased to partner with the world's leading energy companies to do our part in meeting energy challenges," said Steve Knowles , president of Wood Group Mustang.

Wood Group Mustang, in its 25th year, holds 16 world records for facilities installed around the world.  In addition to designing the topsides for the world's largest semi-submersible platform, offshore Australia, Wood Group Mustang has provided design engineering for over half of the 42 producing deepwater projects in the Gulf of Mexico.

Apache Corporation (NYSE, Nasdaq: APA) announced on Tuesday that its Tonto oil field in the United Kingdom sector of the North Sea commenced production on April 24, 2013. Tonto-1, the first producing well, came on stream at an initial rate of 10,346 barrels of oil per day. Apache holds a 100-percent working interest in the Tonto Field.

Tonto-1 was drilled as a deviated well from the Forties Bravo production platform. The appraisal wellbore encountered 62 feet of net oil pay in an Eocene-aged sandstone reservoir at a depth of 6,325 feet, which was followed by a horizontal completion lateral that logged 243 feet (measured depth) of net oil pay.

"Seismic inversion processing unlocked pay in the Tonto field, which lies above the main Forties Paleocene reservoir," said James L. House, Apache's regional vice president for the North Sea. "We penetrated Tonto several times in wells targeting Forties. New seismic techniques enabled Apache's North Sea geoscience team to gain a better understanding of Tonto and establish a development plan."

House noted that Apache has been working closely with the UK government to commence production ahead of a new 3-D seismic survey that will be acquired over Forties in July 2013. Tonto oil reserves produced in advance of this survey will allow geoscientists to image production patterns within the Eocene reservoir to optimize the placement of future Tonto producers. Drilling of an additional development well is currently planned by year-end 2013 following analysis of the 4-D (time lapse) seismic data.

Tonto follows Maule and Bacchus as the third new oil field brought online by Apache in the Forties area within the last three years. All three of these developments have qualified under the UK government's small field allowance system, which provides economic incentives for operators to bring these discoveries into production.

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

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

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

Tests undertaken by Parat Halvorsen on oil spill response equipment (OSR) for offshore supply vessels reveal significant deficiencies with systems using hot water coils. Norway’s leading supplier of steam-based solutions undertook a series of trials after a number of lower cost hot water coil alternatives entered the market.

Photo: The Parat Halvorsen steam coil (right) alongside a hot water coil

Kim Kristensen, Marine and Offshore, Parat Halvorsen says: “We have shown empirically that steam injection is the one viable solution proven to keep heavy oil viscous enough for easy loading and offloading.”

Any spilled oil is recovered by OSR-equipped vessels and stored in tanks until it can be delivered to recovery stations on land. The recovered oil has to be heated to maintain a sufficient viscosity for offloading. Parat Halvorsen offers a heating solution based on steam injection from a boiler onboard. It has supplied equipment to a significant number of OSVs delivered by yards including Havyard, STX Norway, Kleven and Ulstein.

To verify whether alternative hot water-based solutions work, Parat installed a compact heating coil and a steam injection nozzle in a test tank at its facilities in Flekkesfjord. Watched by representatives from shipbuilders, owners, consultants and the Norwegian Coastal Administration, the tests measured performance of both solutions in water and in heavy oil. The empirical results showed that heat transfer in heavy oil using the hot water coil was just 10% of that achieved by the same coil in water.

“The results from the tests clearly showed that using a heating coil is not a viable option,” says Mr Kristensen. “When we started the steam injection system, live temperature logging recorded the way the oil was evenly heated in a matter of minutes.

“Our advice to shipyards and owners is to exercise caution on OSR equipment selection, basing choices on correct, up-to-date information. We believe that the laws of physics are against hot water coil-based systems, particularly in cold, harsh weather conditions such as those in the North Sea.”

Companies should thoroughly evaluate equipment performance, Mr Kristensen adds, “or they may find that any price differential is more trouble than it is worth.”

Parat has developed the Parat ORO multi nozzle arrangement, which can heat the whole tank from one insertion point. Steam is supplied via the Parat MEL electrical boiler, approved for marine use by class societies including Germanischer Lloyd, Bureau Veritas, Det Norske Veritas and Lloyd’s Register. It has also patented part of the hot water circulation loop used in normal operations interconnecting heat recovery and heat consumers to ensure continuous operation. If an oil spill incident should occur, the vessel operator can bypass the boiler in the hot water loop and re-mobilise the boiler to generate steam for the ORO tank heating system.

Deep Down, Inc. (OTCQX: DPDW) ("Deep Down"), an oilfield services company specializing in complex deepwater and ultra-deepwater oil production distribution system support services announced it has received an order from a major international controls manufacturer for the manufacture and deployment of specialized short umbilical jumpers worth in excess of $1.5 million.  The order is for the first phase of a large gas project on the Northwest coast of Australia; delivery is scheduled for the fourth quarter of 2013.

Ron Smith , Chief Executive Officer of Deep Down, Inc. stated, "This award offers proof that our clients are increasingly coming to us to provide intricate and specialized connection strategies. We are confident that by working together with our clients on these specialized projects, the result will be a solution that is more reliable and much easier to install.  It is a prosperous relationship that is continuing to grow on a daily basis."

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

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

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

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

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

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

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

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

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

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

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

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

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

Scotland's oil and gas supply chain exports rose by 8.4 percent in 2011-12, to $12.7 billion—almost double the rate of the previous year—according to the latest figures from Scottish Development International and the Scottish Council for Development and Industry (SCDI).

The new figures, which are part of the latest annual survey of international activity in the sector, were announced by Scotland's Minister of Energy, Fergus Ewing , at the Offshore Technology Conference in Houston, Texas, where the Scottish Government is hosting a delegation of over 50 Scottish companies.

According to the survey, international activity accounted for a record 47.6 percent of total sales from the sector, an increase from 31 percent over the past decade. Total oil and gas supply chain sales, which includes sales through subsidiaries, increased by 5.8 percent to reach $26.7 billion, with exports to over 100 markets across the globe.

Commenting on the new figures, Minister Ewing said:

"Scotland has established a global reputation within the oil and gas sector, and I am delighted that these latest figures show an increase in international sales, which now account for almost 50 percent of total sales.

"Scotland is leading the way in the world of oil and gas and has a clear competitive advantage in this truly global industry. There are huge opportunities open to us internationally, and we are determined to make the most of them.

"The Scottish Government recognizes the substantial contribution that the oil and gas industry makes to our economy. We are working with the industry to continue to strengthen Scotland's position as a global leader in the sector and these figures mark further growth in this important part of our economy."

North America remained the top region for exports with $4 billion of sales targeted into this region, an increase of 2.8 percent, but strongest growth was reported in the Middle East. Africa remained the second most important with a 5.9 percent increase in sales. Brazil, the United States and Australia are reported to be the new markets of greatest interest – with sales in Australia alone increasing by 9.4 percent.

The services sector is also dominant in terms of sales, seeing an increase of 10 percent from last year's survey. The types of services being exported from Scotland include project management, consultancy, construction, maintenance, resource management, software design, drilling, access solutions, catering, logistics/transport, engineering and design.

Danny Cusick , President, Americas, Scottish Development International, said:

"Growing oil and gas export levels is a key priority for Scotland, so we welcome the success demonstrated by these latest figures, particularly at a time when many regional economies have been stagnant. They show that our expertise in oil and gas remains with increasing demand across the globe, and clearly demonstrate the growing importance international markets have to play in the long-term future of the industry in Scotland.

"While other markets such as Brazil, Africa, the Middle East and Australia are increasingly becoming international priorities for Scotland, North America remains by far our top and most important region for exports.  Continued investment by oil and gas companies from the U.S. and Canada is crucial to Scotland's long-term economic growth."

Ian Armstrong regional director, Scottish Council for Development and Industry, added:

"The global nature of Scotland's oil and gas supply chain is once again illustrated by this latest set of export figures. The international expertise and success of the industry is built on outward looking and innovative companies based in the North East, Highlands & Islands and other parts of our country, who consistently proved themselves to be world leading in identifying and capitalizing upon business opportunities in  oil and gas provinces around the world. As energy expertise in Scotland continues to build across other sectors, SCDI anticipates this trend will continue to benefit Scotland for many decades to come."

BP announces  that it has agreed to sell its 60% interest in the Polvo oil field in Brazil to HRT Oil & Gas Ltda for $135m in cash. Subject to regulatory approvals, BP expects the deal to close in the second half of 2013.

“Over the past two years BP has built a significant portfolio of upstream interests in Brazil which offer long term growth potential. We are now actively engaged in exploring this new acreage,” said Guillermo Quintero, BP Brazil President. “The sale of our interest in the Polvo field is part of our ongoing global portfolio optimization as we reposition the company for long-term growth.”

BP currently has interests in fourteen exploration and production blocks in Brazil. BP purchased interests in ten exploration and production blocks – including the shallow-water Polvo field – from Devon Energy in 2011 and farmed into four deepwater blocks operated by Petrobras a year later. Earlier this year BP announced a successful flow test at its operated Itaipu discovery in the Campos basin, one of the blocks acquired from Devon.

The Polvo field is located in the southern part of Campos basin, approximately 100 kilometres off the coast of Rio de Janeiro, in water depths of around 100 metres. Commercial production started in 2007 and BP has operated the field since its acquisition from Devon. The other 40% stake in the field is owned by Maersk.

Polvo currently produces approximately 13,000 barrels of oil per day, with BP taking a 60% share.

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

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

AGR will be providing drilling management services.

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

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

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

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