The Caspian Sea region is one of the oldest oil-producing areas in the world and is quickly growing as a natural gas production hub.

The Caspian Sea region is one of the oldest oil-producing areas in the world and is an increasingly important source of global energy production. The area has significant oil and natural gas reserves from both offshore deposits in the Caspian Sea itself and onshore fields in the Caspian basin. Traditionally an oil-producing area, the Caspian area's importance as a natural gas producer is growing quickly.

This report analyzes oil and natural gas in the Caspian region, focusing primarily on the littoral (coastal) countries of the Caspian Sea (Russia, Azerbaijan, Kazakhstan, Turkmenistan, and Iran). A discussion ofUzbekistanis also included. While not a Caspian coastal state, a considerable amount of Uzbekistan's territory, along with its energy resources, lies in the geological Caspian basins.

Aside from Azerbaijan's oil production, the Caspian Sea largely was untapped until the collapse of the Soviet Union. With several newly independent countries gaining access to valuable hydrocarbon deposits, the different countries have taken diverging approaches to developing the energy resources of the area. At the same time, the lack of regional cooperation between the countries' governments and few export options for Caspian hydrocarbon resources have slowed the development of Caspian oil and natural gas resources.

The combination of foreign investment and rising energy prices allowed the coastal countries to shift from diverting oil extraction for local use to supplying both regional and world oil markets. The ability of countries to export greater volumes of Caspian crude oil and natural gas will depend on how quickly domestic energy demand rises in those countries, how quickly they can build additional export infrastructure to global markets, and whether expensive projects to develop Caspian resources can attract sufficient investment.

Image credit: EIA

NYC-based PIRA Energy Group reports that global Asian oil markets remain supported on a global basis. On the week, U.S. stocks fell, split about equally between crude and products.  In Japan, crude stocks drew on higher runs and contained imports. Specifically, PIRA’s analysis of the oil market fundamentals has revealed the following: 

Asian Oil Markets Remain Supported on a Global Basis

Oil prices remain at the top of their trading range with firmness being supported by tightened crude balances which are being fueled by supply losses from producers such as Libya and Iraq and ongoing outages from Syria and Nigeria. All told, the market is currently at its maximum point of physical strength, with high runs, supply losses and crude stock declines. 

Overall Commercial Inventories Decline

U.S. stocks fell for the week ending August 16, split about equally between crude and products and matching last year's inventory decline for the same week. This left the inventory excess 1.9% above year ago levels. The bulk of the excess inventory is in gasoline. Overall adjusted oil demand growth is now running just 0.9% above year ago levels. This is the second week in a row that demand growth was no higher than 1% after three earlier weeks of near 3% growth. Some of PIRA's other energy indicators of economic growth (e.g. electricity demand) have also been weakening, which is not a good sign for the economy. 

Two Weeks of Japanese S/D Data

Two weeks of data were reported this past week due to the mid-August hiatus. Crude stocks drew on higher runs and contained imports. Gasoline demand was expectedly strong. Conversely, gasoil demand eased sharply due to the typical mid-August vacation impacts and stocks built, even with higher exports. Kerosene stocks continued to build seasonally, with the average build rate over the last two weeks being relatively high. 

Slow U.S. Stock Building

U.S. propane storage is building rather slowly pushing its price higher going into the crop drying and heating seasons. Butane demand will gain for gasoline blending while ethane continues to be impacted by steam cracker outages. 

Ethanol Prices Advance

U.S. ethanol prices rose the week ending August 16 due to higher corn costs and a tighter market with lower inventories. Prices were also supported by concerns that output will decrease prior to the next harvest because of plant maintenance and corn shortages. RIN prices rebounded after falling to a three-month low in the previous week.

Ethanol Output Decreases

U.S. ethanol production declined to 844 MB/D the week ending August 16, the second lowest level since April, and down from 857 MB/D in the preceding week. Due to dwindling supplies, some ethanol producers have contracted to barge in corn from as far south as Louisiana, where the 2013/2014 harvest has already started. 

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

In February Hydrex diver/technician teams carried out underwater stern tube seal repairs on a 139-meter container vessel in Port Everglades, Florida, close to the company’s  office in Clearwater. The vessel was suffering from an oil leak, making a fast repair necessary. Using one of the company’s next generation flexible mobdocks the team was able to carry out the entire operation on-site and underwater, saving time and money for the owners.

Hydrex constantly invests in the research necessary to continue to evolve repair techniques and procedures. Over the years the Hydrex R&D department has constantly improved the flexible mobdock (mobile mini drydock) technique to make it possible for Hydrex diver/technicians to perform permanent repairs on seals, thrusters and almost any other part of the underwater vessel without the vessel needing to go to drydock.

The latest generation of flexible mobdocks allows Hydrex to carry out the replacement of virtually any type of stern tube seals very quickly on-site.

These flexible mobdocks are stored at the fast response centers. Designed specifically to increase speed of service, these centers are equipped with all the latest facilities, lightweight equipment and tools. This allowed us to mobilize a team together with all the needed equipment to the container vessel’s location within the shortest possible time frame.

After the diving team had set up a monitoring station, the operation started with a thorough underwater inspection of the stern tube seal assembly. The divers then removed the rope guard of the vessel as well as the fishing lines tangled around the liner that had caused the oil leak.

Next the team installed the flexible mobdock around the stern tube seal assembly creating a dry underwater environment for the divers to work in drydock-like conditions, a necessity for permanent stern tube seal repairs. After cleaning the entire assembly, the divers disconnected the split ring and brought it to the surface. Next the team removed the three damaged seals one by one and replaced them with new ones. Because the existing running area was completely worn down, the diver/technicians also installed a spacer ring to create a new running area for the seals.

The operation ended with the conducting of a pressure test with positive results, the removal of the flexible mobdock and the reinstallation of the rope guard.

By creating a dry environment underwater, the divers were able to rapidly complete the required work on-site. The teams worked in shifts to perform the stern tube seal repairs within the shortest possible time frame. The in-situ repair saved the owner the time and money which going to drydock would have entailed.

Statoil ASA (OSE: STL, NYSE: STO) has signed an agreement to divest minority interests in the Gullfaks and Gudrun fields offshore Norway and exit the non-core, non-operated Schiehallion and Rosebank fields, West of Shetlands.

In addition to the cash consideration of USD 2.65 billion, the transaction with Austrian oil and gas company OMV includes a contingent payment and involves a partnership between the two companies. Statoil reduces its ownership share in Gullfaks from 70% to 51% and from 75% to 51% in Gudrun, and retains its operatorships on both fields. 

"Through this transaction, Statoil captures value created through asset development and unlocks capital for investment in high return projects in core areas. This includes our recent discoveries on the Norwegian continental shelf. We continue to deliver on our strategy to create value through active portfolio management and to further increase our financial flexibility," says Helge Lund, Statoil's president and chief executive officer.

Statoil expects to recognize a gain from the transaction estimated to be between USD 1.3-1.5 billion, to be adjusted for activity between the effective date 1 January 2013 and the closing date.

The transaction will enable Statoil to redeploy around USD 7 billion of capital expenditure, around USD 5.5 billion of which is pre-2020 (excluding potential investments in the recent Shetland/Lista discovery at Gullfaks).

Entering partnership

OMV is an established company on both the Norwegian (NCS) and the UK (UKCS) continental shelves. Statoil and OMV enter into a partnership including potential cooperation on exploration opportunities across Norway, the UK and the Faroese Islands as well as the development of enhanced oil recovery (EOR) technologies.

"Statoil is pleased to strengthen the partnership with OMV on the Norwegian continental shelf. OMV is already a valued partner in Edvard Grieg and Aasta Hansteen, and this agreement enables our companies to develop the cooperation further," says Lund.

"I believe this is a win-win deal for Statoil and OMV. Apart from the assets, I am especially proud that we can partner with a world-class leader in offshore and EOR technology," says Gerhard Roiss, chief executive officer of OMV.

Demonstrating value of Statoil's NCS and UKCS portfolio

The transaction builds on Statoil's offshore competence and experience, and track record of realising value through asset development and portfolio management.

As operator of the Gullfaks field, Statoil has added substantial value through successful efforts to maximise oil recovery and recently announced a new discovery in the Shetland/Lista formation. As part of the transaction, Statoil captures upside from this discovery through a contingent payment of 6 USD per barrel of oil equivalent of reserves developed.

Gudrun is on track for production start-up in the first quarter of 2014. As the operator, Statoil is executing the development on time and below original cost estimates. Today's transaction demonstrates the value of efficient project execution in an asset where Statoil increased its ownership in 2010.

Statoil remains committed to growing its business on the UKCS and is the operator of large field developments including the Mariner project and exploration licenses. By divesting non-core, non-operated developments in the West of Shetlands, Statoil further focuses its UK portfolio.

Statoil's production from the divested assets in the first half of 2013 was approximately 26,000 barrels of oil equivalent per day from Gullfaks. Production impact for Statoil from the transaction is estimated to around 40,000 barrels of equity oil equivalent per day in 2014 and 60,000 per day in 2016.

The effective date for the transaction is 1 January 2013. Closing is expected around year end 2013, pending government and partner approvals.

Total proceeds of around USD 15 billion have been realised through divestments by Statoil since 2010, enabling the company to redeploy resources to core, high-return upstream projects.

Bank of America Merrill Lynch and Lambert Energy Advisory Limited were financial advisors to Statoil on this transaction.

Bechtel, the global engineering, construction, and project management company, has created a revolutionary design for ports that could transform shipping in Africa. The Multi-User Offshore Hub is designed for two or more users and consists of an offshore, smart terminal arrangement and docking system that can accommodate oceangoing vessels and barges. The Multi-User Offshore Hub has the potential to open new market opportunities for African ports by significantly increasing capacity and substantially reducing port construction and operation costs.

"As existing African ports become more and more congested, increased capacity is an urgent need for both the import of consumer goods and the export of minerals. Each requires out-of-the-box solutions to handle as many containers as efficiently as possible and to speed the provision of new mineral export facilities to enable the region to develop its economy," said Marco Pluijm, Bechtel's senior ports specialist, who unveiled the Multi-User Offshore Hub concept today at the African Ports Evolution 2013 Forum in Cape Town. "This solution could provide a reduction of up to 40 percent in port infrastructure construction costs compared with building a traditional port and up to 50 percent in operational cost savings as the hub can handle much larger Capesize and Valemax vessels, which result in economies of scale."

The Multi-User Offshore Hub concept combines a country's existing transport modes, such as rail and river barges, to provide the most efficient and sustainable logistics possible. Bechtel is currently identifying suitable sites for a Multi-User Offshore Hub in countries in both East and West Africa.

The Multi-User Offshore Hub concept builds on Bechtel's ongoing commitment to improve shipping capabilities in Africa. The company is also leading a three-year joint-industry research project to improve the safety of mooring large cargo ships off the coast of West Africa. Both initiatives are instrumental in upgrading and expanding port infrastructure needs in Africa. The two initiatives are part of Bechtel’s longstanding work in Africa, which spans more than 70 years.

Bechtel is a global leader in the research, design, and construction of port and marine projects. The company has successfully completed more than 80 port and marine projects across the world, 28 in the last decade. These include Jubail Port development (part of Jubail Industrial City) and Khalifa port and Kizad, which has the first semiautomated container terminal in the Middle East.

Orange Business Services has appointed Martin Denari as global director of the company’s industry sector focused on oil, gas and mining. With more than 25 years of international experience and executive leadership, Denari oversees the development of Orange’s communications and vertical-specific solutions for large exploration and production companies that operate on an international scale.

Oil, gas and miningare core vertical industries for Orange. With offices, refineries, extraction sites, ships and pipelines widely dispersed across the globe, sometimes in hard-to-reach places, both on and off shore, companies need to rely on a connected IT infrastructure and advanced communication services to support their development across the globe.

Exploration makes up the majority of costs for oil, gas and mining companies as they try to meet a growing demand for resources that are becoming scarce. These exploration regions present challenges in access, safety, retrieval and costs. In his new position, Denari will leverage Orange’s global reach covering 220 countries and territories and deep solution portfolio to design an ICT sustainable environment in which these companies can operate and develop. 

The Orange portfolio includes high-speed VPN and satellite connectivity, unified communications, cloud services, video conferencing, mobile access, M2M connectivity, data analytics and 40-plus years of industry expertise delivering these services to a number of isolated regions. For customers, this translates into more accurate tools for exploring resources, real-time collaboration between workers, fewer accidents, precise asset tracking, and better amenities for an onsite crew.


“The true value-add of Orange Business Services to the oil, gas and mining industry is making remote, isolated regions more hospitable and accessible for exploration and production,” said Denari, global director, oil, gas & mining vertical, Orange Business Services. “Customers can rely on Orange to expand beyond their environmental limits in pursuit of new opportunities”

Denari has a thorough background that mixes international business with a sophisticated grounding in engineering, communications and information technology. He has a successful track record, initiating start-ups in a number of different countries. Prior to coming to Orange, Denari served as CEO for such technology service providers as T-Systems Argentina, gedas Argentina (Volkswagen Group), and the Latin American unit of Baan. In the U.S., he served as an IT and business development manager for Halliburton energy services based in Houston, Texas. He also worked in several countries for Schlumberger in close contact with real-time data delivery activities between well sites and interpretation centers.

Bollinger Shipyards, Inc. has delivered the CHARLES DAVID JR, the seventh Fast Response Cutter (FRC) to the United States Coast Guard.

The announcement was made by Bollinger executive vice president of new construction, Chris Bollinger, "We are very pleased to announce another successful on-time and on-budget FRC delivery to the Coast Guard. The CHARLES DAVID JR was delivered to the 7th Coast Guard District in Key West, FL, and will be stationed at USCG Sector Key West. We are all looking forward to the vessel’s upcoming commissioning, as well as honoring and celebrating the heroic acts of Charles David, Jr."

The 154 foot patrol craft CHARLES DAVID JR is the seventh vessel in the Coast Guard's Sentinel-class FRC program. To build the FRC, Bollinger Shipyards used a proven, in-service parent craft design based on the Damen Stan Patrol Boat 4708. It has a flank speed of 28 knots, state of the art command, control, communications and computer technology, and a stern launch system for the vessels 26 foot cutter boat. The FRC has been described as an operational "game changer,” by senior Coast Guard officials.

The Coast Guard took delivery August 16, 2013 in Key West, Florida and is scheduled to commission the vessel in Key West, Florida in November, 2013.

Each FRC is named for an enlisted Coast Guard hero who distinguished him or herself in the line of duty. This vessel is named after Coast Guard Hero, Stewards-Mate First Class Charles W. David, Jr., who was posthumously awarded the Navy and Marine Corps Medal for his bravery. On the night of February 3, 1943, the U.S. Army transport USS DORCHESTER was torpedoed by a U-Boat off the coast of Greenland in the North Atlantic. The CGC COMANCHE was on the scene and its crew desperately searched for survivors in the frigid waters. David fearlessly volunteered to leave the safe haven of the COMANCHE to dive overboard to help rescue the DORCHESTER’s crew. As other crewmen also volunteered to dive in, 93 survivors were rescued out of the freezing waters.

After the last of the survivors were safely aboard, David began to climb the cargo net to the ship’s deck. One of David’s shipmates, Richard Swanson, was having trouble climbing the net due to his freezing limbs. David descended the net with the help of another crewman and pulled Swanson to the deck out of harm’s way. Tragically, David died a few days later from pneumonia.

Eco (Atlantic) Oil & Gas Ltd. ("Eco Atlantic" or the "Company") (TSX-V: EOG, NSX: EOG) is pleased to announce that it has received final approval from Namibia's Ministry of Mines and Energy (the "Ministry") for the inclusion of all oil and gas rights on its Skeleton Coast License #31 which is a transition license that is both onshore Huab Basin and extends offshore Walvis Basin. The License, which the Company recently named "Daniel", covers Blocks 2114, 2013B and 2014B. The license originally covered only CBM and Shale rights but now will include all petroleum.

The Daniel Block has an offshore section extending into Walvis Basin that the Company has recently evaluated for oil prospectivity. Colin Kinley, Eco's Chief Operating Officer commented, "The offshore section of Daniel is near shore, however, it has good cover and is on trend with the slope and direction of the source rock, proven in the last two wells drilled by HRT in the basin. The drilling of the Toscanini well four decades ago on the beach section of this block, based on visible oil shows, seems to be consistent with our evaluation of the block. This oil presence was the basis for wild cat drilling of the Toscanini well, and our oil slick study with Fugro further defines oil presence in the basin and the prospectivity on the Daniel new offshore section of the block. We believe further work on the offshore section of this block will prove consistently prospective."

Gil Holzman, Chief Executive Officer of Eco Atlantic commented, "Eco continues with the focused evaluation of our offshore blocks in the Walvis Basin. We have carefully selected and negotiated the addition of the conventional oil and gas rights for the Daniel Block. The recent confirmation of source rock in both of HRT's wells in the basin is in agreement with our exploration science and definitely has increased focus on the Walvis Basin proven oil prospects. We are grateful for the Ministry's approval."

The Company further announces, based on its technical assessment, and in return for the conversion of License #31, the relinquishment of its CBM Exploration License #32, (Block 2418) onshore South East Namibia.

Saipem, Fairmount’s client, was very pleased with their performance. “The execution of the complex operations demonstrates sound engineering methodology, good preparations, strong teamwork and 110 percent commitment of all involved,’’ stated Saipem management.

Mr. Albertde Heer, CEO of Fairmount, is happy with the achievement of the entire team. "We are delighted to have been so closely involved in this truly unique assignment,’’Mr. De Heer says. “Once again the Fairmount team demonstrated its supreme professionalism in successfully completing this complex, high value project. We hope it’s the first of many to come."

As part of President Obama’s commitment to promoting safe and responsible offshore oil and gas development, Bureau of Safety and Environmental Enforcement (BSEE) Director James Watson has announced another key step to strengthen both human safety and environmental protection on the U.S. Outer Continental Shelf. The proposed rule, which will be published in the Federal Register tomorrow, implements best practices and updates regulations regarding production safety systems and equipment used to collect and treat oil and gas from offshore production facilities.

“Our guiding focus throughout the development of this proposed rule has been and will continue to be worker safety and protecting the marine and coastal ecosystems by helping to reduce the number of production incidents resulting in oil spills, injuries and fatalities,” said Director Watson. “The commonsense changes we are proposing, which will address issues such as production safety systems, subsurface safety devices and safety device testing, will help regulations keep pace with changing technologies that have enabled the industry to explore and develop resources in deeper waters. The rule also implements best practices currently being deployed by industry leaders as we continue to strive for safety at all levels, at all times.”

The proposed rule will revise 30 CFR 250 subpart H, Oil and Gas Production Safety Systems, to address recent technological advances. This section of the regulations has not had a major revision since it was first published in 1988. During that period, industry’s use of subsea trees (the assembly mounted on a well head used to control the flow of oil and gas) and other technologies have evolved or become more prevalent offshore. These devices and materials include foam firefighting systems; electronic-based emergency shutdown systems; subsea pumping, waterflooding, and gaslift; and new alloys and equipment for high temperature and high pressure wells. The proposed rule ensures that the regulations governing their use and maintenance are keeping pace with industry’s advancements and that they address these newer and emerging safety technologies.

The public is invited to submit comments starting tomorrow through October 21, 2013. Comments can be submitted by any of the following methods:  

 Federal eRulemaking Portal:  http://www.regulations.gov. In the entry titled Enter Keyword or ID, enter BSEE-2012-0005 then click search.

A breakthrough of integrated power, propulsion and automation systems for better energy efficiency

ABB, the leading power and automation technology group, has won an order to provide integrated solutions that include the electrical propulsion system, Azipod® CZ and automation system onboard two offshore accommodation vessels.

The 1+1 accommodation vessels will be built by COSCO (Nantong) Shipyard Co., Ltd for Singapore-registered owner Logitel Offshore, which is a subsidiary of Norwegian company Sevan Marine. The cylinder-shaped vessels will each have a displacement of about 40,000 tons and capacity to accommodate 490 persons.

ABB has extensive experience in providing electrical propulsion systems and Azipod units for various offshore vessels. However, this is a breakthrough order for ABB in the floater business to provide an integrated solution that combines not only electrical propulsion system and Azipod, but also the automation system. This integrated package will be delivered to the shipyard by October 2014.

ABB will provide power distribution systems for the two Logitel vessels, including generators, switchboards and main transformers, as well as propulsion transformers and frequency converters. The order also calls for the installation of six Azipod CZ units, conferring superior vessel energy efficiency and manoeuvrability.In addition, based on the System 800xA Extended Automation platform, the ABB automation package provided will be based on its System 800xA Extended Automation platform. This is a version of the group’s world-renowned industrial automation platform that has been adapted for marine applications; include vessel and power monitoring, emergency shutdown, Fire & Gas, as well as the automation of Helideck Monitoring Systems and Loading Computers.

 “ABB already has a large market share in terms of onboard power and propulsion systems,” says Heikki Soljama, head of ABB’s business unit marine and Cranes. “However, this order represents a milestone in our strategy to offer complete solutions for power, propulsion, automation and vessel control. It is the first embodiment of the ‘total integration’ and we believe customers will see a step forward in benefits when one supplier is providing a total package of integrated, cutting edge solutions that deliver enhanced energy efficiency, reliability and improved asset management .”  

ABB (www.abb.com) is a leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impact. The ABB Group of companies operates in around 100 countries and employs about 145,000 people.

NYC-based PIRA Energy Group believes that the China GDP slowdown is underway. On the week, U.S. commercial stocks drew. Specifically, PIRA’s analysis of the oil market fundamentals has revealed the following:

 Difficult Transitions Underway

The China GDP slowdown is underway. It is still unclear whether the long-predicted transition to slower, domestic led growth will be successful and smooth. While this may represent a vulnerability to demand growth (for all fuels), the increasingly volatile political transition in MENA could prove to represent a far more important vulnerability to oil and gas supply growth. The shale revolution continues to spread from the natural gas supply to the demand side of the balance as new markets emerge to take advantage of the growth of low cost North American production. 

U.S. Stocks Drew Last Week

Total commercial stocks decreased for the week ending August 9, largely offsetting the modest builds seen in the prior two weeks. Products increased despite lower refinery runs and lower product imports due to weaker reported demand. Crude stocks drew, with Cushing crude stock draws accounting for half of the total draw. Cushing crude stocks are now down from the all-time high this year and at the lowest level since 1Q12. Despite this week’s decline, the stock excess to last year widened as there was a draw in this week last year. 

U.S. Sees Low Propane Stock Build

A surprisingly low stock build was indicated for the latest reporting week. The U.S. is experiencing a widening deficit to last year. The storage deficit relative to last season is expected to widen as the pace of exports picks up and with a likely favorable crop drying season ahead. 

EPA Finalizes 2013 Biofuel Standards and Will Reduce 2014 Mandates

U.S. ethanol prices and margins fell last week because of rising production, inventories and imports. Sharply lower RIN prices also put downside pressure on prices. The EPA finalized the renewable fuel standards for 2013 and stated that it will reduce the 2014 mandates in order for them to be achievable. 

Ethanol Stocks Draw; Production Higher

Ethanol stocks were drawn by 291 thousand barrels to 16.4 million barrels for the week ending August 9, erasing the build from the previous week. U.S. ethanol production rose for the second straight week, reaching 857 MB/D from 853 MB/D the prior week as several manufacturers maximized output prior to extended turnarounds planned for later this month and during September. 

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

Offshore accommodation and workspace specialists HB Rentals has officially opened its new eastern hemisphere headquarters in the North East of Scotland.

The purpose built £1 million facility, located in Sauchen, was officially opened by the Provost of Aberdeenshire, Councillor Jill Webster, in a ceremony attended by HB Rentals’ clients, suppliers, employees and senior management.

Provost Webster said: “HB Rentals' new facility represents a significant investment in Aberdeenshire and we welcome this boost to the local economy through employment opportunities and increased business activity in the area.

The facility is ideally located at the centre of the North East oil and gas industry in Aberdeenshire benefitting from being located in an area consistently judged to have the highest quality of life in Scotland as well as being an ideal base for HB's international growth plans."

With over 500sqm of covered workshop area and employing a multi-disciplined workforce of around 46 people, the new premises will handle all manufacturing for the company’s eastern hemisphere and allow it to build and consolidate the fleet of A60 accommodation units it currently supplies as well as handling any custom build projects the firm receives.

The base is seen as crucial to HB Rentals’ ambitious growth targets for its key operations in the region which include Europe, West Africa, the Caspian and Middle East.

Eastern hemisphere business unit director Norman Porter said: “The opening of this new purpose-built facility places us in the ideal position to capitalise on business opportunities in an increasingly competitive market and will allow us to fulfill our ambitious growth targets.  The North East of Scotland remains one of the world’s major energy centres and these facilities will allow us to better fulfill our customer’s orders in this region as well as the rest of the eastern hemisphere with the provision of offshore accommodation and workspace solutions.”

The official opening comes after a period of sustained success for the company, which has won several contracts recently.

Sales and marketing manager for the eastern hemisphere Brad Hirst added: “It has been an exciting time for the company recently with several large projects on-going.  Increasingly customers are coming to us requiring custom built or tailored accommodation solutions and the investment in these facilities will mean we are able to offer the full range of services needed to fulfill their requirements and deliver projects to exact specification, on time and within budget. ”

The move to the new premises comes five years after the company first began operating in the North East of Scotland.

HB Rentals operates a fleet of more than 400 A60 units comprising a wide variety of 2 to 12 man accommodation cabins, galleys, laundry, recreation and mess rooms, gymnasiums, heliports, offices, laboratories, MWD, mudlogging and well-support cabins as well as other custom fit-outs as specified by its worldwide customer base.

Operator Statoil has together with PL479 partners made a gas/condensate discovery in the Smørbukk North prospect at Haltenbanken in the Norwegian Sea.

Exploration well 6506/9-3, drilled by the drilling rig Transocean Leader, has proven a 40-metre gas/condensate column in a down-to situation in the Garn formation of mid-Jurassic age.

In addition a thin gas/condensate column was proven deeper in the mid-Jurassic Ile formation. The reservoir properties of the Garn formation are good, while somewhat poorer than expected in the Ile formation.

The preliminary estimated volume of the discovery is in the range of 25-47 million barrels of recoverable oil equivalent (o.e.).

"We are very pleased with having proven the new resources," says Gro G. Haatvedt, senior vice president exploration Norway in Statoil.

"The three discoveries comprising the Åsgard field were all made in the 1980s. Making a new discovery in the area 30 years later is encouraging and proves the exciting remaining potential on the NCS."

Smørbukk North is a typical example of timely near-field exploration, which is an important element in Statoil's sharpened exploration strategy for the NCS.

"Being located directly north of the Åsgard field, the Smørbukk North discovery could be developed quickly and efficiently through a tie-in to existing infrastructure, providing fast resources and potentially extending the production life of the Åsgard production facilities," says Astrid Jørgenvåg, vice president operations at Åsgard.

Smørbukk North was a high temperature well (HT), so special attention was given to ensuring safe drilling operations.

"Smørbukk North was a demanding well to drill, but due to thorough planning and extra HSE focus, the operations have so far been carried out without serious incidents and are currently 21 days ahead of schedule," says Haatvedt.

Exploration well 6506/9-3 is situated in PL479 in the Norwegian Sea. Statoil is operator with an interest of 40.95%. The partners are ENI Norge AS 19.6%, Petoro AS 14.95%, ExxonMobil Exploration & Production Norway AS 14.7%, and Total E&P Norge AS 9.8%. 

For further details on the results of exploration well 6506/9-3, please see the press release issued by the Norwegian Petroleum Directorate (NPD) 

Rosneft and ExxonMobil continue to progress the LNG project proposed in the Russian Far East. The contractor selection process for design and engineering work has officially commenced.

In 2013-2014 Rosneft and ExxonMobil plan to complete design work, including selection of a liquefaction technology and identification of major equipment requirements, to perform engineering surveys, develop Front End Engineering and Design (FEED) and Russian Proyekt documentation for the LNG plant, hydro-technical marine facilities and a source gas pipeline, as well as perform EIA.

Special attention during the design phase will focus on minimizing environmental impact to the unique ecosystem of the Sakhalin island and encouraging development of local infrastructure.
A joint team of experts from Rosneft and ExxonMobil will apply best practices from both companies to complete the project in the shortest possible timeframe.

Commenting on the progress of the LNG project in the Russian Far East, Rosneft President Igor Sechin said, “Rosneft’s offshore license areas hold massive hydrocarbon resource potential, most of which is natural gas. Given the fact that offshore fields are difficult to reach and are not connected to the national gas supply system, the most efficient way to monetize these resources is to liquefy the natural gas and sell the LNG in export markets.

“We are optimistic about prospects for LNG export liberalization in Russia in the near term and are pleased to announce that we have entered an important stage of the LNG project jointly with our strategic partner ExxonMobil.

“I would also point out that construction of the LNG plant and essential infrastructure will rely on the full resources of the Russian manufacturing and construction industries (primarily those based in the Far East) applying international best practices.”

Capacity of the LNG project to be located on Sakhalin Island in the Russian Far East is expected to be 5 million tons per year, subject to further expansion. The liquefaction plant, the launch of which is scheduled for 2018, will receive natural gas from Rosneft’s reserves in the Far East and other Sakhalin gas reserves.

At a meeting held on August 16 , Petrobras' Board of Directors approved the following asset sale transactions totaling US$ 2.1 billion:

1. Sale of a 100% interest in Petroquímica Innova S.A. (Innova) to Videolar S.A. and its majority shareholder for R$ 870 million (approximately US$ 372 million1), the buyer to take on debt of approximately R$ 23 million.

The transaction will be put to a vote at an Extraordinary Shareholders' Meeting to be convened in due course and, based on the opinion of the Brazilian Securities Commission, will not involve any preemptive rights for the acquisition of Innova shares by Petrobras shareholders.

Innova is a second-generation petrochemical company sited in the Petrochemical Zone of Triunfo, in the state of Rio Grande do Sul. It produces ethylbenzene, styrene and polystyrene, used in the manufacture of home appliances, disposables, elastomers, packaging, paints and fiberglass.

Completion of the transaction is subject to certain standard pre-conditions, including approval by the Brazilian Antitrust Authority (Cade).

2. Sale of the 35% stake held by Petrobras in block BC-10, known as Parque das Conchas, to the Sinochem Group for US$ 1.54 billion.

Block BC-10 is located in the Campos Basin, some 100 km off the south coast of the state of Espírito Santo, and partners include Shell, the operator with a 50% stake, and ONGC with 15%. These partners have preemptive rights which can be exercised within 30 days after notification.

Completion of the transaction is subject to the certain standard pre-conditions, including approval by the Brazilian Antitrust Authority (Cade), Brazil's National Petroleum, Natural Gasand Biofuels Agency (ANP) and China's National Development and Reform Commission (NDRC).

3. Signing of farm-out contracts amounting to US$ 185 million related to 100% of the Petrobras stake in blocks MC 613 (Coulomb), GB 244 (Cottonwood) and EW 910, all in production and located in the US Gulf of Mexico.

Petrobras has a 33% stake in the Coulomb field; the remaining 67% is held by Shell, which is the operator. The field is located in Mississippi Canyon Block 613 (MC 613), some 130 km off the coast of Louisiana.

Petrobras has a 100% stake in the Cottonwood field located in the Garden Banks Block 244 (GB 244), some 220 km off the coast of Texas.

Petrobras has a 60% stake in the EW910 asset; the remaining 40% is held by W&T Offshore, which is the operator.

The transaction is subject to third party preemptive rights and approval by the Bureau of Ocean Energy Management (BOEM).