The downing of flight MA17 has prompted calls for further sanctions on Russia targeted at its energy sector. Russia is the world's largest exporter of natural gas and second largest exporter of oil which together account for near 60% of its export earnings. Gazprom supplies 30% of Europe's gas - some 15% via Ukraine - and has warned exports will be affected if sanctions are expanded. But in its payments row with Ukraine Gazprom has already stated that it will "only be supplying the exact amount of gas requested by our European partners to the Russia-Ukraine border". Considering that Ukraine itself needs to draw gas supplies from the same pipelines, Europe is already threatened with gas shortages.

But Russia itself also faces challenges, namely in maintaining – let alone growing – production as existing fields deplete. In 2000, it drilled 3,770 wells and production was some 17 million boe/day. By 2013 it was drilling some 7,500 wells and achieved a production of 23 million boe/day – well numbers up 99% for a production gain of 35%. On this basis at DW we forecast it will need to be drilling over 8,800 wells in 2020 and in increasingly more difficult areas, hence the Exxon rig sailing to location in the Russian arctic (much to the embarrassment of some on Capitol Hill).

The Russian economy is already in a mess and to maintain its oil & gas production it increasingly needs to access western capital markets and advanced oilfield technologies. Sanctions that severely hit its energy production will indeed work and cripple the Russian economy, but could cause oil prices to soar and thereby impact the still fragile global economy.

But the real lesson of this whole affair is for Europe – it is far too reliant on imported energy. No single type of energy source or supplier is immune from problems and Douglas-Westwood have long warned that Europe is sleep walking into an energy crisis due to lack of investment in both 'home grown' base-load energy sources such as nuclear power and shale gas, in energy storage and Europe-wide integrated transmission networks.

www.douglas-westwood.com

JDR, a leading provider of technology connecting the global offshore energy industry, is opening a new offshore engineering technology center in Cambridge. Building out from JDR's global HQ in North Cambridgeshire, the new center will put JDR at the heart of Cambridge's growing oil and gas innovation community as energy research seeks to exploit reserves in deeper and harsher offshore environments. The new center will be officially opened by Cambridge MP Julian Huppert on
28 July.

JDR's products are used by major energy companies and offshore service providers around the world as part of infrastructures that manage subsea energy production. The new Cambridge R&D team – from experienced engineers to graduates – will evolve JDR's specialist knowledge of subsea production umbilicals and subsea power cables to take on exploration challenges faced by oil, gas and offshore wind operators. They will focus on new technology development, from innovative product concepts to subsea materials development, developing collaborative relationships with other Cambridge-based technology companies and academia.

Andrew Norman, JDR's chief executive officer commented: "Subsea energy production is one of the fastest growing sectors of the international oil and gas industry; JDR has a strong track record in this field. Our new Cambridge Technology Center will strengthen our focus on advanced technology, for example products that enable production equipment to operate on the seabed, close to hydrocarbon sources.

"Our Cambridge Technology Center is an important development for JDR's international site and customer network. At the same time we want to build strong and mutually beneficial relationships in the Cambridge technology network, becoming part of the 'Cambridge effect' working with business and academia on new solutions for our industry."

Julian Huppert MP added: "I am delighted that JDR have chosen Cambridge as the base for its new

technology center and I am honored to be asked to officially open the center.

JDR is a leader in research in this highly specialized area and its work in Cambridge could result in exciting future developments in sustainable energy. This is encouraging for all of us as we work to find ways to lessen our dependency on fossil fuels and find greener alternatives.

"It is encouraging to hear that the company has plans to grow the center over the next year, opening up job opportunities in the city. I wish it every success for the future."

James Young, JDR's engineering director added: "We plan to grow our Cambridge team over the next

12 months, expanding the group with experienced and graduate engineers. This is a great time to join the JDR; our international client base is pushing exploration into increasingly challenging subsea environments. With our industry track record, we are ideally positioned to take on these challenges and help secure long-term energy supply.

"Our Cambridge Technology Centre has been custom-designed to support the work of our research and development team. It is also equipped with technology to enable cross site and functional team working across national boundaries and time zones. Our Cambridge team will be innovating the vital connection technologies to make our future customers subsea energy projects both technically and commercially successf

NYC-based PIRA Energy Group believes that with both the physical market and financial length bottoming, oil prices are at or near their lows. In the U.S., sharp crude stock reduction is offset by a product build.  In Japan, crude stocks posted a large draw. Specifically, PIRA’s analysis of the oil market fundamentals has revealed the following:

Sharp U.S. Crude Stock Reduction Offset by Product Build

Crude stocks fell for the week ending July 11, 2014 while product inventories built, causing an overall inventory build. This inventory pattern fits with record crude runs. Last year for the same week, inventories were down slightly so the year-on-year inventory excess widened. Crude oil and other products are up on last year while the four major product inventories are down.

Japanese Crude Runs Rise, Crude Stocks Post a Large Draw

Despite typhoon Neoguri hitting Japan the last week, runs still posted a sizable gain, while imports dropped and crude stocks drew. Product balances for gasoline and gasoil were little changed, while kerosene stocks resumed building. Both gasoline and naphtha stocks drew to record lows. Refining margins remained good with cracks little changed.

Freight Market Outlook

Crude markets have been whipsawed recently by the sectarian civil war in Iraq and changing perceptions on the return of Libyan supplies to the market. Dated Brent prices increased by $6/B to $115/B following the June 10th fall of Mosul to ISIS insurgents. But as it became apparent that exports from Basrah were unlikely to be impacted while prospects for the return of Libyan supplies increased, the price of Dated Brent fell by more than $12 per barrel to $103/B with a steep contango structure at the front end of the forward price curve. This has prompted the opportunistic storage of crude on tankers and increased incentives for the movement of additional long-haul volumes out of the Atlantic Basin to Asia, causing a counter-seasonal rise in crude tanker rates in the Atlantic. For tanker operators there are double benefits with higher spot tanker rates and lower bunker prices, at least for the moment.

Strong Week for International LPG

Tightness in LPG supplies in Europe, particularly in butane, had prices bid up this week. European supply has tightened considerably on lower export volumes out of Russia, and refinery maintenance in Antwerp and the UK. Russian maintenance at gas processing plants has lowered prompt Russian output. Coaster sized parcels of butane in NWE ended the week 4% higher at $838/MT. Asian prices were also higher on strong demand -- as soaring VLGC freight rates have industrial consumers worried that supply will be impacted.

Ethanol Prices Decline

U.S. ethanol prices showed some strength early in the week ending July 11, but then resumed their recent descent, weighed down by rising inventories. Ethanol manufacturing cash margins improved for the second consecutive week, largely due to plunging corn costs.

Ethanol Output Up, but Inventories Down

U.S. ethanol output rebounded to 943 MB/D the week ending July 11, up from 927 MB/D during the holiday-shortened week ending July 4. Inventories declined by 341 thousand barrels to a four-week low 17.9 million.

Political Risk Scorecard

Concerns about potential further sanctions on Russia, along with Iraqi instability, will support prices next week.

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.

To accommodate the future needs of the rapidly growing Angola offshore oil and gas industry Fugro has opened its new facility in the SONILS Oil Service Centre in Luanda. Angola is now the second largest oil producer in Sub-Saharan Africa, after Nigeria.

The official opening of the facility on 10 July by Mrs Lilianne Ploumen, the Dutch Minister for Foreign Trade and Development Cooperation, was attended by the Angolan Minister for Construction, Waldemar Pires Alexandre as well as the Secretary of State of the Ministry of Petroleum, Eng. Anibal Silva; the Dutch Ambassador to Angola, Mrs Susanna Terstal; and local dignitaries and clients.

"Our new site demonstrates Fugro's strong commitment to the Angolan market," said Ms Christina Brokahne, Managing Director of Fugro Angola as she took Mrs Ploumen and guests on a tour of the facility, which comprises a building area of approximately 7,000 m2.

The new site hosts a double storey administrative building housing offices, conference rooms, a training facility and staff canteen. Attached to the office building is a large warehouse facility of 2,500 m2 with a 20-ton overhead crane and ample storage space, as well as workshops for equipment testing and maintenance, a dedicated area for subsea equipment and ROV tooling and a large state-of-the art geotechnical laboratory.

The ceremony also provided an opportunity for Fugro Angola to demonstrate its practical support for the 'Challenge the Silence' programme of the Forum de Mulheres Jornalistas para a Igualdade no Genero. Mr Herivaldo Augusto, Director Fugro Angola Limitada and Mr Wilhard Kreijkes, Fugro Regional Director Africa together with Mrs Ploumen presented a cheque to the charity, which raises awareness of gender equality and domestic violence in Angola.

NYC-based PIRA Energy Group believes that the global economy will expand at above trend pace in the second half of 2014. In the U.S., products increased and crude stock declined.  In Japan, crude stocks built as imports rebounded from storm impacts. Specifically, PIRA’s analysis of the oil market fundamentals has revealed the following:

World Oil Market Forecast

After a sub-par first half, the global economy will expand at above trend pace in the second half of 2014, led by manufacturing. First half weakness in the economy undermined global oil balances with inventories building back to year ago levels. The U.S. crude inventory situation is quite tight while Europe is very long, although the worst of the European prompt crude price weakness has likely passed. The sharp decline in financial net length is supportive for nominal oil prices.

Again, a Product Increase and Crude Stock Decline

Overall U.S. commercial oil inventories increased compared to last year’s decline for the same week, expanding the year on year inventory excess. The product stock increase was roughly the same compared to the week earlier, as crude runs, product imports and reported demand did not change much. The crude inventory gap narrowed by 3.5 million barrels - to a still large 4 million barrels.

Japanese Crude Stocks Build as Imports Rebound from Storm Impacts

Runs continued to rise as turnarounds wind down. Crude imports jumped higher following typhoon disruptions and crude stocks built. Gasoline demand was only slightly higher, despite the upcoming holiday and stocks built from record lows. Gasoil demand was higher with a big surge in exports such that stocks drew 1 MMBbls. Kerosene demand remained low and stocks continued building.

Profitability of U.S. Shale Oil Plays: The Paradox of Company vs. Well Results

It is possible that individual shale wells may have breakevens well below current oil prices while the companies that are drilling those wells are struggling against cash flow limitations. The inability of companies to turn cash flows positive has raised the question of whether the shale industry is really viable financially in the long-term, or just supported by cheap money. An in-depth analysis of the play economics shows that negative cash flows are mostly a result of aggressive drilling behavior that should eventually reward investors.

LPG Scorecard

U.S LPG prices remained stable despite large increases in domestic inventories. The promise of increased exports has the bears on the sidelines, for now. Mt Belvieu propane settled at 104¢/gal, up marginally on the week. August/February contango in the propane forward curve increased by 0.6¢ in the week, to 5.2¢. Butane prices were flat. Ethane at Mt Belvieu fell with Henry Hub natural gas. Ethane’s fractionation margin remains negative, albeit by only 1¢/gal, reflecting the lack of outlets and high inventories currently facing the cracker feedstock. High and rising inventories will contain prices while the prospect of higher exports and the nearing end of summer will be supportive for U.S. LPG prices next week.

U.S. Ethanol Manufacturing Margins Lower

Chicago and Gulf Coast ethanol prices were stable the week ending July 18, but values in Southern California rose while prices in New York fell. Ethanol manufacturing cash margins were down slightly, as falling DDG values outweighed lower corn costs.

U.S. Ethanol Output Rises

U.S. ethanol production increased to 959 MB/D the week ending July 18, the second highest output of the year. Inventories were relatively flat, declining by only 5 thousand barrels to a five-week low 17.9 million.

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.

Statoil has been awarded interest in the COL4 license offshore Colombia in the Caribbean Sea in the2014 Colombia Licensing Round.

Statoil will hold 33.33% in the license. Repsol will be the operator of the license and will hold 33.34%. ExxonMobil Exploration Colombia will hold 33.33%.

The award is subject to the final approval of the National Hydrocarbons Agency of Colombia (ANH).

"Deepwater offshore Colombia is virtually untested. The award of new acreage in this frontier area is in line with our exploration strategy of early access at scale", says Nick Maden, senior vice president for Statoil's exploration activities in the Western Hemisphere.

The license award represents a country entry for Statoil into Colombia. The entry is an early exploration phase and the initial working commitments include 2D and 3D seismic acquisition which will allow Statoil to further assess the potential of the basin.
There are no well commitments during the first exploration phase.

Oceaneering International, Inc. (NYSE: OII) has reported record quarterly earnings for the second quarter ended June 30, 2014.

On revenue of $927.4 million, Oceaneering generated net income of $110.3 million, or $1.02 per share. During the corresponding period in 2013, Oceaneering reported revenue of $820.4 million and net income of $98.8 million, or $0.91 per share.

Summary of Results
(in thousands, except per share amounts)

                             Three Months Ended                                                   Six Months Ended
                                   June 30,                         March 31,                              June 30,

                           2014             2013                     2014                           2014              2013

Revenue           $ 927,407      $ 820,372             $ 840,201                 $ 1,767,608      $ 1,538,924

Gross Margin       218,215        201,864                 189,491                      407,706           362,239

Income from Ops. 161,311       146,337              132,862                         294,173           254,627

Net Income         $ 110,295     $ 98,811              $ 91,225                     $ 201,520        $ 173,660

Diluted Earnings

Per Share (EPS)         $1.02         $0.91                    $0.84                            $1.86             $1.60

Year over year, quarterly EPS increased on profit improvements from Subsea Products, Remotely Operated Vehicles (ROV), and Subsea Projects. Sequentially, quarterly EPS rose on higher operating income principally from Subsea Products and Subsea Projects.

M. Kevin McEvoy, President and Chief Executive Officer, stated, "Our quarterly EPS was slightly above our guidance, and was up 21% over the first quarter of this year and 12% over the second quarter of 2013. EPS for the first half of 2014 was 16% higher than the first half of 2013. We achieved record quarterly operating income from Subsea Products, and for the first time Subsea Products operating income exceeded that of ROV.

"Our outlook for the second half of this year remains positive and unchanged overall from last quarter. Given this outlook and our year-to-date performance, we are narrowing our 2014 EPS guidance range to $3.95 to $4.05 from $3.90 to $4.10. Relative to the first half of 2014, we expect to generate higher income from each of our operating segments during the second half, led by ROV and Subsea Projects. We continue to forecast year-over-year operating income growth for all of our oilfield segments in 2014.

"Compared to the first quarter, Subsea Products operating income rose on the strength of increased revenue and profitability from tooling and subsea hardware. Subsea Products backlog at quarter end was $850 million, compared to our March 31 backlog of $894 million and $902 million one year ago. During the quarter we announced one large umbilical contract for offshore Indonesia.

"ROV operating income was essentially flat, as operating margin declined due to higher repair and maintenance expenses, unanticipated startup costs associated with placing new systems in service, and lower fleet utilization. Revenue grew on increases in days on hire and revenue per day on hire. During the quarter we put 13 new ROVs into service and retired 4. At the end of June we had 323 vehicles in our fleet, compared to 296 one year ago.
"During the second half of this year, we expect to place at least 13 new ROVs into service, and we have contracts for all of these. When these new vehicles are placed into service depends upon the actual commencement dates of new drilling rig and vessel project work. We now anticipate adding 40 or more new systems to our ROV fleet in 2014.

"Sequentially, Subsea Projects operating income increased largely as a result of adding a vessel, the Bourbon Evolution 803, to our Field Support Vessel Services contract with BP for work offshore Angola and a higher profit contribution from the Ocean Alliance in the U.S. Gulf of Mexico. The Ocean Alliance was out of service for much of the first quarter undergoing a regulatory drydock inspection. Asset Integrity operating income improved slightly due to a seasonal increase in activity in Europe and the Caspian Sea area. Advanced Technologies operating income declined due to execution issues on certain U.S. Navy and industrial projects.

"For the third quarter of 2014, we are projecting EPS of $1.10 to $1.15. We expect sequential improvements in income from all of our operating business segments, led by ROVs.

"Our liquidity and projected cash flow provide us with ample resources to invest in Oceaneering's growth. At the end of the quarter, our balance sheet reflected $103 million of cash, $80 million of debt, and $2.2 billion of equity. During the quarter we generated EBITDA of $217 million, $403 million year to date, and for 2014 we anticipate generating at least $855 million.

"In June we increased our regular quarterly cash dividend by 23% to $0.27 from $0.22 per share. This underscores our continued confidence in Oceaneering's financial strength and future business prospects.

"Looking beyond 2014, we believe that the oil and gas industry will continue its investment in deepwater projects. Deepwater remains one of the best frontiers for adding large hydrocarbon reserves with high production flow rates at relatively low finding and development costs. With our existing assets and opportunities to add new assets, we are well positioned to supply a wide range of services and products to safely support the deepwater efforts of our customers."

The first cargo has been successfully offloaded from what is expected to be Chevron's largest investment in Brazil: the offshore Papa-Terra heavy oil development in the Campos Basin.

"The first offloading at Papa-Terra represents an important milestone for the company, reinforces the progress being made by the project and highlights the success of the partnership between Chevron and Petrobras," said Les Wood, a manager with Chevron Brazil.

The Brasil Voyager, a tanker owned and operated by Chevron, was built with specific features for offloading oil from Papa-Terra.

On May 9, the Brasil Voyager, a tanker built specifically for the operation, lifted approximately 740,000 barrels of oil from Papa-Terra's floating production, storage and offloading (FPSO) vessel. The oil came from the first two production wells in the field.

"This is a significant milestone for the Papa-Terra project," said Kelly Hartshorn, managing director of Chevron's Latin America business unit. "This project will make a positive impact on Chevron's future growth target, and I am proud of the Chevron Brazil team for their efforts to get us to this successful point in the field's development."

The Brasil Voyager is expected to offload around 950,000 barrels of crude from Papa-Terra every 40 days.

"The Brasil Voyager is now bringing cargo to the market, including providing supply to the Pascagoula Refinery, and we look forward to its return to the Papa-Terra Field for the next Chevron shipment," Wood said.

On May 12, production began from a third well at Papa-Terra. Two additional wells are expected to start producing to the FPSO in 2014.

The Papa-Terra Field lies in approximately 3,900 feet (1,189 m) of water. The project includes the FPSO as well Brazil's first tension-leg well platform (TLWP), which was installed in the field in April. Heavier-oil production wells will lead to the platform while lighter-oil production wells will tie back to the FPSO. First oil from the TLWP is expected later this year.

The project has a planned daily capacity of 140,000 barrels of crude oil and 35 million cubic feet of natural gas

ABS a leading provider of global marine and offshore classification services, and the Maritime and Port Authority of Singapore (MPA) signed a memorandum of understanding (MOU) today to promote maritime research and development (R&D) and innovation.

Over the next five years, ABS and MPA will collaborate on maritime R&D in the areas of alternative/clean fuel and developing resilient, next-generation port systems. Both parties will also commit to promote and share maritime thought leadership on technology.

"For more than 50 years, ABS has been committed to working alongside the MPA, industry and academia to foster the safe and environmentally responsible growth of the Singapore marine and offshore industries," said ABS Chairman and CEO Christopher J. Wiernicki. "This MOU is a further sign of our commitment to work with all stakeholders in this growing hub of global trade to further R&D efforts that provide practical solutions to today's most pressing challenges."

MPA Chief Executive Mr. Andrew Tan said, "MPA works closely with classification societies to undertake research activities in Singapore. This MOU with ABS will strengthen Maritime Singapore's R&D capabilities in the areas of green shipping, future port and maritime technologies. It also aims to promote Singapore's position as a global maritime knowledge hub."

The ABS-MPA MOU covers the following areas:

• Alternative/clean fuel research and technology, such as in liquefied natural gas (LNG) bunkering, covering both operational configuration studies and risk assessment and safety.

• R&D on resilient, next-generation port systems relating to the safety and security of new port facilities, and where processes, such as traffic management, safe navigation, security measures, situational awareness, decision making and consequence management measures, have to be continuously and effectively assessed and updated.

• Promote maritime technology to the Singapore maritime community through thought leadership fora, such as workshops and dialogues.
This latest agreement builds upon ABS-MPA Maritime Technology Professorship program at the Singapore University of Technology and Design (SUTD). The aim of the program is to build up SUTD's capabilities in maritime education and R&D to further boost the growth of marine and offshore technology development in Singapore.

McDermott International, Inc. (NYSE: MDR) ("McDermott") has announced that one of its subsidiaries was awarded a contract to provide transportation and installation services to Walter Oil & Gas Corporation ("Walter") for the Megalodon platform destined for South Timbalier Block 311 in the Gulf of Mexico. The project is expected to be included in McDermott's third quarter 2014 backlog.

The McDermott heavy-lift vessel, Derrick Barge 50, will install the Megalodon platform in 391 feet of water, over an existing well site in the Gulf of Mexico. (Photo: Business Wire)

"McDermott is pleased to work again for Walter to support its drilling and production activities," said Dominic Savarino, Vice President and General Manager, Americas. "This project supports our goal to maximize our asset utilization between large contracts through short term transportation and installation work."

McDermott will provide all materials and equipment to transport and install the six-pile platform in 391 feet of water, over an existing well site. The heavy-lift Derrick Barge 50 will perform a side-lift of the 3,300-ton jacket and set the 2,100

Asset Guardian Solutions Ltd (AGSL), which specializes in protecting companies' process critical software assets, announced that it has been awarded a key contract by a major North Sea operator in Aberdeen, Scotland.

The contract requires AGSL to provide Asset Guardian, a process software management tool that helps to secure the integrity of process software and the mission critical processes that it controls.

Protecting integrity of process critical software on North Sea assets

AGSL will install Asset Guardian software on all of the operator's assets in the North Sea. Asset Guardian software provides a multifaceted, single point solution to manage the process control software it uses to operate these assets. It also ensures that the company complies with all relevant regulatory standards and government directives on process critical systems, such as IEC61508, 61511, ISO 9001, CPNI and HSE KP4 among others.

By using Asset Guardian, the operator will operate with a single secure repository in which all software and data for its North Sea assets is stored. By doing so, critical information is centralized, providing authorized personnel – both onshore and offshore - with access to one source of data, dramatically enhancing workflow.

In addition to preventing unauthorized access to process software, Asset Guardian makes it possible to retrieve back-up files and data required to update or replace system software that has been corrupted or failed, quickly and efficiently. As a result, negative impact upon production is dramatically reduced.

Improving communications enhances operations

Because these assets operate in the rugged, often stormy North Sea, communication links between the assets and onshore cannot always be relied upon. "To address this, we are also providing AGSync, a software solution that we developed especially for the oil and gas industry that makes it possible to synchronize data and files between locations," said Sam Mackay, Managing Director of AGSL.

In addition to providing Asset Guardian software, AGSL will also assist this customer with the migration of files and data from existing systems into Asset Guardian and provide full training to both Users and system Administrators using the recently launched Asset Guardian Computer Based Training (CBT) program.

Since 2007, AGSL has been supplying the oil and gas industry with the Asset Guardian toolset. The award of this contract follows on the heels of several others, including those from Woodside, Inpex, Stena Drilling, BP, Marathon, and nuclear energy provider EDF Energy

Shell has announces its third major discovery in the Norphlet play in the deep waters of the Gulf of Mexico with the successful Rydberg exploration well. After more than 10 years of exploration activities in the Eastern Gulf of Mexico, Shell continues to lead industry in exploring this Jurassic play.

"The Rydberg discovery builds upon our leadership position in the Eastern Gulf of Mexico and its proximity to our other discoveries in the area make Rydberg particularly exciting." said Marvin Odum, Shell Upstream Americas Director. "These successes represent the emergence of another hub for Shell's deep-water activities that should generate shareholder value."

The Rydberg well is located 75 miles (120 kilometres) offshore in the Mississippi Canyon Block 525 in 7,479 feet (2,280 metres) of water. It was drilled to a total depth of 26,371 feet (8,038 metres) and encountered more than 400 feet (122 metres) of net oil pay.

Shell is completing the full evaluation of the well results but expects the resource base to be approximately 100 million barrels of oil equivalent. Together with the Appomattox and Vicksburg discoveries, this brings the total potential Norphlet discoveries to over 700 million barrels of oil equivalent.

This is the first discovery for the partnership of Shell (operator, interest 57.2%), Ecopetrol America Inc. (28.5%) and Nexen (14.3%), a wholly-owned affiliate of CNOOC Limited. The discovery is within 10 miles (16 kilometres) of the planned Appomattox development and the 2013 Vicksburg discovery (Shell, operator, 75% and Nexen, 25%).

Shell and Nexen are following up the Rydberg discovery with an exploratory well at Gettysburg, located in Desoto Canyon Block 398 which is also within 10 miles (16 kilometres) of the planned Appomattox Development.

• The Jurassic-period Norphlet play is a geological formation that extends from onshore to the deep waters of the Eastern Gulf of Mexico.
• Appomattox (Shell 80%, Nexen 20%) is currently in the define phase of development and is moving forward with engineering design for the floating production system, subsea infrastructure and wells.
• The drillship Noble Globetrotter I drilled the Rydberg well and is currently repositioning to drill the Gettysburg exploratory well.
• The Gulf of Mexico is a major production area in the USA, accounting for almost 50% of Shell's oil and gas production in the country and almost 180 thousand boe per day in 2013.
Download fact sheet 'Shell and the Norphlet play' (July 2014) (PDF, 168 KB)

Danos recently added an Environmental Services Division to the company's collection of oilfield related services, which includes production workforce, construction, fabrication, coatings, instrumentation and electrical, and shorebase and logistics.

Located on the Intracoastal Waterway in Larose, La., the Environmental Services Division provides full-service environmental cleaning – from spill kits to tank cleaning and small releases to large magnitude spills.

Executive Vice President Paul Danos said, "Adding environmental services to our family of capabilities, positions Danos to better serve our customers' oilfield needs. The prime, waterfront location increases our response capabilities while decreasing our response time – critical during an environmental situation."

Danos' environmental services team, led by Operations Manager Farrell Lafont, has over 74 years of combined experience in environmental response and is also skilled in plan writing, ground audits, disposal services, product sales and consulting services.

Lafont, a Golden Meadow, La. native, joined Danos in 2013 as an incident manager for BP during the Deepwater Horizon oil spill, bringing with him 27 years of experience in environmental response. Prior to joining Danos, Lafont held environmental response management positions at ES&H Consulting, Oil Mop and Halliburton.

Danos is a classified as an OSRO (Oil Spill Removal Organization) by the U.S. Coast Guard capable to respond to facility or vessel releases on land, rivers and canals.

Statoil resumed oil and gas production on the Njord A platform in the Norwegian Sea on 19 July, after a major reinforcement of the platform structure. Production has been shut down since last summer.

The Njord A platform in the Norwegian Seat. (Photo: Øyvind Nesvåg)

Extensive analyses and inspections in 2013 revealed a need to reinforce the Njord A platform structure. To be on the safe side, Statoil opted to keep production shut down until the reinforcements were in place.

"We have extended Njord's lifetime by improving recovery on the field, and by finding more oil and gas in the area. The Njord A platform has been with us the entire time, and we want to make sure that the structure can withstand the loads it will be exposed to," says head of Njord operations Arve Rennemo.
The work that has been done through the winter and spring has strengthened the structure, so the platform can resume production. The work of reinforcing the structure has mainly consisted of bracing the primary beams and struts, and increasing the length of the secondary beams under the platform.

The long-range plan is to further bolster the platform to prepare it for future drilling operations and an extended lifetime on the Njord field.

"Njord A will produce oil and gas until the summer of 2016, after which it will be taken to shore for additional upgrades which will allow us to use the drilling system on board, and prepare it for many more good years of service on the Norwegian shelf," says Rennemo.

Statoil also has studies in progress to assess how the Njord area and the Haltenbanken area in the Norwegian Sea can be further developed. The Njord A platform has been in production since 1997.

Facts:

Scaffolding used in the reinforcement process. (Photo: Ole-Andreas Nylund)

Njord A - the Njord field in the Norwegian Sea was developed with a floating steel platform, Njord A, with an integrated deck with a drilling and processing facility and living quarters. Njord A started production in September 1997.

The platform was designed for an original lifetime of 16 years – to 2013. The Petroleum Safety Authority subsequently approved the technical design lifetime to 2022.

Njord was a marginal field development with strong focus on low costs and rapid execution.

The area has a substantial resource potential which could provide a basis for production beyond 2013.

Njord Future – suring the structural reinforcement project, it became clear that, even with the reinforcements implemented offshore over the past year, the Njord A platform will not be robust enough to resume drilling activity in the summer of 2014. Nor will the platform be able to produce until 2022, which is the existing technical lifetime for the installation.

The Njord Future project has therefore been initiated to ensure a long-term solution for optimal resource utilisation in the Njord area.

There are considerable remaining resources in the area, and plans are now being laid to recover these resources, either using a modified Njord A platform or through construction of a new platform.

It is natural in this context to investigate possible cooperation solutions with other recent discoveries made in the area.

Claxton Engineering Services, an Acteon company, has appointed Martin Jolley as vice president sales and commercial to spearhead its global sales and commercial strategy.

Providing leadership and vision to direct the company's sales, marketing, commercial and tendering divisions, Jolley will be based in Claxton's UK head office, overseeing commercial development aimed at expanding the business worldwide.

Jolley's appointment underlines Claxton's commitment to global expansion and growth of operations. Claxton recently secured its biggest ever riser contract – for the development of the Hanz field, offshore Norway.

Jolley, who has a master's degree in industrial economics and a degree in engineering science, was previously business development director for Camellia plc., where he was responsible for AKD Engineering Ltd and five other companies within the Camellia group.

Laura Claxton, managing director, Claxton, said, "Our ongoing aim is to extend the responsive, high-quality engineering services that we deliver in the North Sea into new markets. Martin will play a leading role in this and ensure that we deliver the same high levels of customer and market focus in Norway, South East Asia and the UAE. His experience and leadership capabilities will prove invaluable in our continuing international expansion and we are delighted to have him onboard at Claxton."

Claxton holds one of the largest stocks of subsea risers with a wide array of bore, pressure and complete system options. The company has also pioneered rigless well abandonment operations and has installed approximately 5,000 structural centralizers globally.

UK flowmeter specialist Litre Meter (www.litremeter.com) has launched the second in a series of oil and gas industry safety surveys that will be introduced throughout 2014.

The survey (http://tiny.cc/ped) is designed to enable manufacturers and resellers to test assertions about functionality and construction and quality of manufacture.

The new survey concentrates on the Pressure Equipment Directive (PED) and one lucky respondent will win a Kindle for taking part.

The purpose of PED is to harmonize national laws regarding the design, manufacture, testing and conformity assessment of pressure equipment and assemblies of pressure equipment. This includes pressurized storage containers, heat exchangers, steam generators, boilers, industrial piping, safety devices and pressure accessories. Such pressure equipment is widely used in the process industries including oil & gas, chemical, pharmaceutical, plastics and rubber and the food and beverage industries - all of which are key markets for Litre Meter.

Litre Meter has launched the second in its series of industry surveys on safety issues in the oil and gas sector.

All relevant equipment, plant and systems in the European Economic Area must comply with the PED. It requires the level of hazard of pressure equipment to be assessed and classified into 1 of 5 categories labelled SEP (sound engineering practice) then categories I-IV. The higher the level of hazard, the more extensive the level of quality assurance required during the design, manufacture and testing of the equipment.

Litre Meter CEO Charles Wemyss said: "There has been increased focus on safety issues in the offshore sector over recent years. We want to make sure that our manufacturing focus is on safety in relation to both the environment and industry trends.

"Issues surrounding the environment and hydrocarbon releases, asset aging and life extension drive the focus on safety. We want to be able to help in the process of recognizing hazards and reducing risk as well as help engineers take ownership of risk and asset integrity through proving assertions about the functionality and construction of instruments.

"Asset integrity management ensures that the people, systems, processes and resources that deliver integrity are in place, in use and will perform on demand over the asset's lifecycle.

"Being able to prove assertions about the manufacture and functionality of equipment are vital in this process."

Earlier this year Litre Meter conducted a survey of the use of Safety Integrity Levels (SIL) in the specification of instrumentation in the oil and gas sector. The results of that survey are published at http://tiny.cc/sil-result.

To take the PED survey visit http://tiny.cc/ped and spend just a few minutes answering the questions.