ABS Secures Prestigious FLNG Classification Contract

The PETRONAS facility is scheduled to start deepwater operations offshore Sabah, Malaysia, in 2018

ABS, a leading provider of classification and technical services to the global offshore industry, has been awarded the classification contract from PETRONAS, Malaysia's national oil company, for the company's second floating LNG facility (PFLNG 2). The vessel will be built at the Samsung Heavy Industries yard in Geoje, Korea.

"This is a very significant award for us," says ABS Chairman and CEO Christopher J. Wiernicki. "It also is the natural next step for an organization that is widely recognized as the leader in the classification of offshore production units and LNG ships."

ABS has a long history working with floating gas concepts, classing the first offshore LPG storage unit in the world in 1997 and the first LPG FPSO in 2005. ABS has awarded approval in principle (AIP) for ten floating LNG concepts and has performed pre-front-end engineering and design (FEED) and FEED work on a number of others.

As the selected class society for the PFLNG 2 unit, ABS will provide a comprehensive suite of technical services, including classification.

PFLNG 2, which is scheduled to see first gas production in early 2018, will be moored via an external turret on the deepwater Rotan gas field offshore Sabah, Malaysia. Designed to produce 1.5 million metric tons of LNG per year, the vessel is expected to operate on site for a minimum of 20 years without dry docking.

ABS Vice President for Global Gas Solutions Patrick Janssens views this as the first of many potential awards.

"The search for new energy reserves is seeing exploration activities shift to the type of remote offshore fields on which facilities like the PFLNG 2 are perfectly suited to operate," Janssens says. "With the growing demand for gas around the world, there will be a continued emphasis on FLNG-related technology, and ABS will continue to play a leading role."

The award to class this FLNG newbuild comes just months after the unveiling of the ABS Global Gas Solutions team, a multidisciplinary group of engineers formed to respond to the rapidly escalating number of gas-related projects, including LNG and LPG transportation, the use of LNG and LPG as fuel and the growing number of FLNG projects.

There currently are more than 150 floating oil and gas facilities in the ABS-classed fleet, the largest single market share of any classification society.

AziPac Ltd. is a newly established exploration and production company focused on exploring for oil and gas in the maritime basins offshore the Asia Pacific region and the Bay of Bengal. AziPac is backed by Seacrest Capital Group, the global energy investor. AziPac will be headquartered in Singapore.

Portfolio
At launch, AziPac has secured a number of exploration licenses in the Southeast Asian offshore and Bay of Bengal regions. Further details of the opening portfolio of licenses will be made public following final regulatory approval in each of the relevant countries. AziPac has built up a significant pipeline of attractive exploration opportunities throughout the region.

Management & Technical Resources
AziPac joins a growing portfolio of regional companies established by the Azimuth Group ("Azimuth") and backed by Seacrest Capital Group, the global energy investor. Azimuth has exploration assets offshore Asia-Pacific, Ireland, Norway, the United Kingdom and Namibia. Azimuth has a team of thirty oil industry professionals with a proven track record of finding significant hydrocarbons offshore, including the Asia Pacific region. The team has been involved in over 100 oil and gas discoveries globally. AziPac, like the other Azimuth exploration companies, will utilize this shared resource of world-class professionals, as well as leading edge seismic data, to optimize exploration opportunities and de-risk assets in the Asia-Pacific region.

Azimuth Group is managed and backed by Seacrest Capital Group, a leading global energy investor.

David Sturt, Director of AziPac, Commented:
'The offshore Asia Pacific and Bay of Bengal regions are experiencing a resurgence in exploration for new oil and gas reserves. This is driven by exciting recent discoveries, new licensing rounds, new company entrants and, importantly, the potential for new technologies to be brought to bear in new and mature exploration areas. AziPac has been established with an opening portfolio of world-class exploration assets and is well supported by the Azimuth Group which includes professionals who have a proven ability to discover significant hydrocarbons in the region. We aim to rapidly grow the company, with a focus on technology and innovative exploration thinking to unlock value in traditional and new oil and gas basins offshore Asia."

InterMoor, an Acteon company, is finalizing a joint venture agreement with Century Energy Services Ltd (Century) in Nigeria. This will be a locally registered company and fully compliant with the Nigerian Oil and Gas Industry Content Development Bill, 2010. For InterMoor, securing a joint venture with an experienced and established partner like Century will ensure an effective local engagement with the Nigerian oil and gas market.

InterMoor has been working in West Africa for 10 years with bases in Luanda and Malongo in Angola. The company also has extensive experience with rig moves and mooring campaigns in Angola and Equatorial Guinea.

Philipp Stratmann, InterMoor's global development manager, said, "Nigeria is the largest oil producer in Africa. Expanding in Nigeria is a strategic move for us while we continue to focus on international growth and new ways to address our clients' needs. The joint venture will ensure compliance with Nigerian local content laws and enable us to participate in the increasing number of offshore projects being conducted in the region."

Derrick Douglas, InterMoor's new business development manager in Nigeria, and Osas Uwaifo, Century's managing director for the joint venture, will manage the InterMoor offices in Lagos. Douglas brings 10 years of experience with Shell Nigeria to the job and holds an MBA from Cranfield School of Management in the UK. Uwaifo is a petroleum engineer with more than 13 years' experience in business development and contract management in the oil and gas industry. She is currently in charge of business development and commercial activities for Century Group and has a BEng degree in petroleum engineering.

InterMoor currently has three permanent staff based in Lagos, including a local operations and a local commercial manager. It also offers shore-based support through its partner at Kidney Island and through the planned yard at the Lagos Deep Offshore Logistics Base (LADOL).

Subsea 7 S.A. (Oslo Børs: SUBC) today announced the award of a three-year US$160 million contract extension by BP Exploration & Production Inc. for
light subsea construction, inspection, repair and maintenance services in the US Gulf of
Mexico.

The contract will run from the second quarter 2014 to the third quarter 2017. The scope covers the provision of two vessels, including a dedicated vessel on a full-time basis, associated project management and engineering support, ROV-based inspection and intervention, and light construction work.

One of the vessels to be utilised in the contract is a new-build offshore subsea construction vessel while the other is a light construction vessel. Both vessels will be chartered on a long- term basis.

John Evans, Subsea 7's Chief Operating Officer, said: "We are very pleased to have been awarded this important contract extension and to be able to continue growing our valued relationship with BP. This award highlights our proven track record for safely delivering successful Life-of-Field operations."

Hoover Container Solutions (“Hoover” or the “Company”), a subsidiary of Hoover Group, Inc., announced that Rod Branch has joined Hoover as Vice President of Human Resources. He will report directly to Paul Lewis, President of Hoover.

Branch’s responsibilities include talent acquisition, employee relations, organizational design, performance management, compensation planning and change management initiatives.

“With the amount of talented associates within our organization and throughout our industry, it is important to have strong human resource leadership,” says Lewis. “Rod’s expertise will ensure that our existing team is in top form and that all future Hoover hires are properly placed for future growth.”

Branch joins Hoover with 20 plus years of experience and a diverse background in both large and small organizations. He was most recently Vice President of Human Resources for PSC Industrial Services, a supplier of industrial cleaning and repair services for the refining, downstream, oil and gas and utilities industries.

He has a Bachelor of Science degree in Petroleum Engineering Technology from Oklahoma State University and was a production and drilling engineer for British Petroleum (BP) for 12 years in the Midcontinent Region. Branch served two years in Prudhoe Bay, Alaska, for BP where he drilled directional wells from offshore gravel islands.  He was also a lobbyist for BP for two years before joining Enron Liquid Fuels as government affairs director, and later joined Enron’s HR team in 1995. He was HR director for The Coca-Cola Company over plant operations and R&D for six years.

Tugs Fairmount Summit and Fairmount Alpine have towed rig ENSCO 5006 safely from Cyprus to Singapore. The Fairmount twins towed the rig over about 13,000 miles.

Before he departure off Limasol, Cyprus, both Fairmount tugs performed anchor handling work for the rig. On request of its owners cargo and crew runs were done during a stop off Las Palmas and a bunker stop was made at Port Nqgura, South Africa. During parts of the voyage transit speeds up to 9 knots were reached.

The ENSCO 5006 is a semi submersible drilling rig, capable for drilling operations up to 7,600 meters. The 1999 built rig is owned by Scottish ENSCO Plc.

Fairmount Marine is a marine contractor for ocean towage and heavy lift transportation, headquartered in Rotterdam, the Netherlands. Fairmount’s fleet of tugs consists of five modern super tugs of 205 tons bollard pull each. Fairmount Marine is part of Royal Boskalis Westminster. Boskalis is a leading global marine and dredging contractor.With a versatile fleet of 1,000 units Boskalis operates in around 75 countries across six continents with 11,000 employees.

JDR, a leading provider of technology connecting the offshore energy industry, is increasing its global footprint with the opening of a new service and maintenance facility in Brazil.

The JDR facility will be the latest addition to the bustling port city of Macaé when it opens for business in Q3 of 2014. The city is seen as an ideal location to build the company's local presence and reputation, with more than 80% of the oil produced by Brazil being linked through the port in some way.

JDR specialises in the design and production of steel and thermoplastic subsea production umbilicals subsea power cables and Intervention Workover Control Systems (IWOCS) as well as offering offshore and field services for the global oil and gas industry.

The Brazilian market is seen by JDR as being critical to the globalisation of the business, which commands a 70% market share in IWOCS in all markets outside of the South American country.

Andrew Norman, CEO of JDR, said: "The addition of a Brazilian facility is a significant step toward achieving our global growth strategy and a significant milestone in the company's development.

"Our technologies have been at the heart of a number of significant subsea projects throughout the world and we believe that our expertise and our umbilical core competency lends itself to becoming a leading regional supplier of intervention and workover (IWOCS) products, production umbilicals and hydraulic flying leads (HFLs) that will be needed for pre-salt developments in Brazil.

"The country is home to the largest offshore, deepwater operation in the world, which is JDR's core expertise. Not only does this make it an attractive proposition, it is also the next logical step for us to service the growing global subsea sector."

Subsea projects are becoming increasingly important in the drive to access the world's remaining reserves – with many fields in more challenging environments than ever before. JDR's in-house engineering teams have been working with clients to ensure the infrastructure is designed and manufactured for each individual project.

Norman added: "Many of the challenges facing Brazil are similar to those we have overcome with clients in other parts of the world and as a result we feel confident that we can add real value to projects throughout the region."

Aker Solutions will split into two companies to speed up a streamlining process that will reduce costs and better position all parts of the group to meet the needs of customers in an increasingly competitive global energy industry.

The Subsea, Umbilicals, Engineering and Maintenance, Modifications and Operations (MMO) areas will form a new company under the Aker Solutions name. The company will be more strategically aligned, have a narrower focus and deeper synergies to strengthen its leading position through its unique subsea technology and state-of-the-art offshore field design.

The other units, including Drilling Technologies, Aker Oilfield Services and Process Systems, will be developed independently as part of a new oil-services investment company, named Akastor. These business areas, which have significant operational, technological and commercial differences, will have greater strategic freedom to develop individually through both organic growth and transactions.

The split, which will take place as a spin-off of the new Aker Solutions, is scheduled to occur around the end of September. Both companies will be listed on the Oslo stock exchange.

"The new Aker Solutions will be a leaner and more focused company that will be able to offer customers the unique and cost-effective technology and design they need to succeed," Executive Chairman Øyvind Eriksen said. "The company will, through a commitment to operational excellence and organic growth, be better placed to build on its leading position in the fastest growing areas of the global energy markets."
 
Shareholders will get one new Aker Solutions share for each stock held in the existing company at the time of the separation. They will also keep their shares in the remaining business, which will be renamed Akastor at the time of the split, ensuring that the existing shareholder structure is implemented in each company.

The transaction has met with approval from Aker Solutions' largest shareholders, Aker Kværner Holding and Aker ASA. An extraordinary general meeting will be held in August to vote on the separation.
 
"We are taking a major step in a transformation that began 12 years ago with the merger of Kværner and Aker Maritime," said Eriksen. "After this transaction and the 2011 Kværner spin-off, we will have created three distinct companies to service the global energy industry, providing offshore construction, unique subsea technology and field design and oilfield services. We have also divested NOK 12 billion in assets as part of the process."

New Management 
Luis Araujo, the regional president for Aker Solutions in Brazil, will be chief executive officer of the new Aker Solutions. Frank Ove Reite, currently managing partner at Converto, will become CEO of Akastor. Øyvind Eriksen will remain chairman of the board of Aker Solutions.

"While I will continue to play an active role as chairman, it is time for new leadership to take these companies forward," Eriksen said. "Luis has proved more than capable in managing our expansion in Brazil and will provide inspired leadership as the new Aker Solutions builds on its success in the subsea and deepwater markets. Frank has a long experience within the Aker group and is excellent at developing businesses and pushing them toward their full potential. I look forward to working closely with Luis and Frank to unlock the great values in both companies."

Leif Borge, current chief financial officer of Aker Solutions, will be CFO of Akastor. Svein Oskar Stoknes, who heads the subsea area's finance function, will take on the role as CFO of the new Aker Solutions. 
 
Synergies
The new Aker Solutions will be streamlined to focus on the fast-growing deepwater and subsea oil-services markets and in areas with operational, commercial and strategic similarities. There will be a swifter realization of synergies as the subsea and field design areas share the same customers and main markets. The company will have a simpler strategy focused on value creation through technological development, organic growth and operational excellence. It will be uniquely positioned to design, equip, build and maintain the future subsea production factory and will build on its expertise within project execution and offshore field design.

"The new Aker Solutions will benefit from greater synergies and a more coordinated customer approach, leading to a stronger market position and higher and more predictable returns on capital," said Eriksen. 
 
The Akastor management team has extensive experience in developing companies and creating value through operations, restructuring and transactions. The company will provide a structure where the businesses Drilling Technologies, Aker Oilfield Services, Process Systems, Surface Products and Business Solutions will be developed as largely independent entities with management teams, boards of directors and strategies aimed at maximising their value. Each company will have greater strategic and transactional freedom because it will no longer be constrained by the competing needs of other businesses. The entities will be able to focus marketing efforts on core customers and invest strategically. Akastor will also hold financial and real estate assets representing about 20 percent of the company's balance sheet.

Drilling Technologies will be the largest business within Akastor, accounting for about 60 percent of the earnings and workforce.

"There is a strong industrial logic underpinning this move," Eriksen said. "The businesses that will make up Akastor have significant operational, technological and commercial differences that have prevented them from achieving synergies with the other businesses in Aker Solutions. Through this separation, we will be able to more fully realize the industrial and return potential of all our business areas and create value for our shareholders."

Diamond Petroleum Ventures LLC, a thermal unit provider based in Lafayette, Louisiana, has appointed Em Roosevelt as technical sales representative.

Roosevelt is responsible for direct sales and account management and will work toward expanding the company’s markets in the offshore oil and gas industry. He will also manage marketing and sales efforts aimed at bringing new technologies to commercialization.

Roosevelt joined Diamond Petroleum Ventures in December 2013 and has more than 30 years of experience in the oil and gas industry. In his previous position, Roosevelt led the development of services utilizing membrane nitrogen for reviving and sustaining production of offshore platforms. He has also held positions at Nitro-Lift Technologies and Tesco Corporation.

“Em is particularly experienced within the Gulf of Mexico area where our company's core operations are located,” said Rusty Lamb, Diamond Petroleum Ventures, CEO. “He has directed business development activities and brought new technologies to market throughout his career, and we are proud to have him as a member of our team.”

Roosevelt graduated Cum Laude with a degree in agribusiness management from Texas A&M University. 

NYC-based PIRA Energy Group believes that the physical markets are recovering. In the U.S., commercial stocks continue to March higher. Specifically, PIRA’s analysis of the oil market fundamentals has revealed the following:

Physical Markets Are Recovering

PIRA's economic growth forecast is on track. Market positioning is more of a concern for next month's prices than seasonality. Physical markets are recovering, especially in the Atlantic Basin, supported by relatively low stocks and higher crude run demand. As expected, low inventories have strongly kicked off the gasoline season, but with higher crude runs gasoline stocks will build back towards more typical levels. Diesel tightness will ease over the next few months, but stocks will stay generally low all year.

European Oil Market Forecast

Atlantic Basin crude supply growth in light grades supports continued relative strength in Urals differentials hurting refining margins for medium-sour grades. Light product exports from Russia will increase and VGO/straight run resid exports will decline, this year and next. Refining margins in Europe will remain challenged this year with marginal FCC/visbreaking capacity modestly attractive through midyear but then weaker in the 4th quarter. Gasoline cracks will peak early as stocks will build back quickly over the next few months. Distillate inventories will remain low and prices will strengthen further as demand picks up after midyear.

U.S. February 2014 DOE Monthly Revisions

DOE released its final monthly February 2014 (PSM) U.S. oil supply/demand data today. Demand came in at 18.99 MMB/D versus the 18.77 MMB/D PIRA had assumed in its balances. Compared with the weekly preliminary data, total demand was revised higher by a large 538 MB/D, with distillate demand revised higher by 601 MB/D, and gasoline higher by 226 MB/D. This is because of much lower exports than the DOE was assuming. End-February total commercial stocks stood at 1,047 MMBbls, nearly identical to PIRA's projection.

The Freefall in Ethanol Prices paused at the end of April

U.S. ethanol prices declined sharply during most of April as the weather in the Midwest improved and the gridlock in the rail system eased. The last few days of the month, prices stabilized as some companies needed to purchase ethanol to meet April supply commitments.

Ethanol Stocks Build

Ethanol inventories built to the highest level since July 2013 the week ending April 25, rising by 694 thousand barrels to 17.2 million barrels. Ethanol production fell to 898 MB/D from 910 MB/D during the preceding 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.

Churchill Drilling Tools, the provider of reliable and easy to use drilling systems, is celebrating a successful first year for its dedicated service base in Houston, with a number of key milestones achieved.

Through its Houston base, the company has:

·       Completed successful projects for a number of super-majors in the region

·       Developed a range of excellent high performance case histories both on the Gulf of Mexico shelf and in deepwater

·       Generated a high demand for advanced drifting and circulating technologies in the Gulf

Churchill Drilling Tools recently announced the successful deployment of its dart activated DAV MX™ circulating valve at a record measured depth of 26,012ft in a development well off Louisiana. Enabling rapid and assured reamer bypass in a sidetrack operation, the application exploited the deepwater capability of the company’s Smart Dart™http://www.circsub.com/august20011/ to withstand both rapid delivery speeds and high temperature and pressure variations.

Using its multi-cycle capability, bypass deactivation was equally simple and assured as the assembly was pulled from hole. This proved the capability of the system to give the operator total control over both the fluid path directions and the drilling equipment whilst maintaining the well control flow-rate objectives set out in the program. 

The DAV MX™ is used globally across a range of drilling environments including deepwater, high-pressure, high-temperature (HPHT) and high-angle extended reach drilling. The Mechanical Extrusion system is significantly more reliable, faster and more cost effective than polymer extrusion, the process used for traditional ball-activated systems. The system’s previous record deployment exceeded 16,000ft in a well offshore UK.

The establishment of the Churchill Drilling Tools’ advanced technologies in the Gulf of Mexico has attracted significant interest from experts in the drilling field.

In April, Churchill Drilling Tools was delighted to announce the appointment Mark Elliott, one of the most experienced advisors on circulating tools in the region, as business development manager.

Mark, who has more than seven years’ experience in the sector, said: “Dart activation is a step forward in valve technology that will enable this product category to keep up with operator expectations for performance and reliability. I am excited to be involved with the roll-out of this technology, which is so clearly needed”.

Looking forward in 2014 and 2015, Churchill Drilling Tools is planning to roll-out some of its more recent new products in the region and there are also a number of exciting research and development projects nearing completion.

 “Although present in the region for a number of years, the establishment of our own service base in Houston has given our business a real boost. All the operators In the Gulf of Mexico are pushing into new performance areas which makes it an exciting place for Churchill to be focused,” said Churchill Drilling Tools’ managing director Andy Churchill. “It gives us a great opportunity to track what the leading operators are doing and to come up with innovative drilling tools that will assist them.”

Petrobras work every day to become one of the world's five largest oil producers. Last year, the company reached the unprecedented mark of nine platforms delivered, which will add a million barrels per day to their production capacity.

Get to know these nine platforms completed in 2013:

1) P-58
An FPSO-type platform, P-58 became operational in March 2014. Installed at about 85 km off the coast of Espírito Santo, in water depths of 1400 meters, this platform has a daily processing capacity of 180,000 barrels of oil and 6 million cubic meters of natural gas from pre-salt and post-salt reservoirs.
Check out P-58's construction process.

2) P-55
A semi-submersible type platform, P-55 is the largest of its kind in Brazil. It went into production in late 2013, at the Roncador field (Campos Basin), anchored at a depth of about 1800 meters. It is capable of processing up to 180,000 barrels of oil and of compressing 4 million cubic meters of gas per day.
Learn how P-55 was assembled.

3) P-63
An FPSO-type platform, P-63 went on stream in November 2013. It is capable of processing 140,000 barrels of oil and 1 million cubic meters of gas, and of injecting 340,000 barrels of water per day. P-63 makes up the first production system at Papa-Terra (Campos Basin), which also includes P-61 and SS-88 TAD. Learn more about P-63.

4) FPSO Cidade de Paraty
FPSO Cidade de Paraty went into production in the Santos Basin pre-salt region (Lula Nordeste area) in June 2013, anchored at a depth of 2120 meters, some 300 km off the coast. It is capable of processing up to 120,000 barrels of oil and of compressing 5 million cubic meters of gas per day.

5) FPSO Cidade de Itajaí
FPSO Cidade de Itajaí went into production in February 2013, in the Santos Basin post-salt region (Baúna and Piracicaba Field), 210 km off the coast. It is capable of processing up to 80,000 barrels of light oil and 2 million cubic meters of gas per day.

6) FPSO Cidade de São Paulo
FPSO Cidade de São Paulo went into production in January 2013, in the Santos Basin pre-salt region (Sapinhoá Field). It is capable of processing up to 120,000 barrels of oil and 5 million cubic meters of gas per day.

7) P-61

The first TLWP (Tension Leg Wellhead Platform) type rig to be built and operated in Brazil, P-61 will operate in the Papa-Terra field (Campos Basin) with P-63. Together, the units will have capacity to produce 120,000 barrels of oil per day. It is forecast to go on stream in the second half of 2014.

8) P-62
Installed about 125 km offshore, in the Campos Basin, at water depths of 1600 meters, this FPSO-type platform is expected to go into production in the first half of 2014. It is capable of processing up to 180,000 barrels of oil and 6 million cubic meters of gas per day from post-salt reservoirs.
Check out the construction and assembly process of P-62.

9) SS-88 TAD
The SS-88 TAD (Tender Assisted Drilling) semi-submersible unit will be anchored next to P-61, in the Papa-Terra field (Campos Basin), to provide power, accommodations, drilling fluid storage space, and support systems.

Statoil (OSE: STL, NYSE: STO) has announced that it has started its latest Gulf of Mexico exploration campaign. It started drilling Martin, a high-impact prospect, on 20 April.

"We consider Martin one of the top prospects in our global portfolio," says Jez Averty, senior vice president of exploration for Statoil in North America. "Since acquiring this prospect in 2012, we've advanced it in 20 months which is considerably faster than the normal maturation time."

As the world's largest offshore operator, Statoil has a significant presence in the Gulf of Mexico.  In addition to its active exploration program, Statoil is a partner in many of the largest fields under development, including Jack, St. Malo, Big Foot, Julia, Vito and Stampede.

"We're committed to profitability growing our business in North America," said Bill Maloney, Statoil executive vice president of its North America operations. "Having a strong and robust exploration program is essential for long-term growth, and we're very excited to begin this latest drilling campaign in the Gulf of Mexico."

In a speech at a private reception during the Offshore Technology Conference in Houston, Maloney explained that Statoil's growth in North America has been methodical and incremental. The company has made strategic acquisitions in onshore and offshore plays while building its midstream capacity.  The company has been active in North America for 25 years.

In 2013, Statoil was ranked as the world's most successful exploration company, finding more oil and gas than any other company. Statoil also made the world's largest conventional oil discovery in 2013. Its Bay du Nord discovery in the offshore east coast of Canada contains 300-600 million barrels of oil.

Through water technology and survey company, Nautronix, has been awarded a 5 year frame contract - based on a non-exclusive agreement - by SURF and subsea contractor Ceona with an initial 1 year call-off for the supply of survey services to support their new build DP3 subsea construction vessel, the Polar Onyx.

The contract includes the initial survey support and mobilization of the vessel in Europe before the vessel commences a minimum of 1 year's work in Brazil as a PLSV for Petrobras. Nautronix will supply personnel and equipment to provide survey services on the vessel.

Sam Hanton, Director of Survey for Nautronix, says 'Since our Survey division was launched in 2012, we've seen significant growth and gained an excellent track record in ROV construction survey support. The award of this contract by Ceona is a significant step in our development, and recognises our commitment and ability to provide a high quality survey service.'

Saipem has won a new offshore Engineering & Construction contract in Azerbaijan, for a total amount of approximately $1.8 billion.

BP, on behalf of the Shah Deniz consortium, has awarded to the Saipem, Bos Shelf and Star Gulf consortium, a Transportation and Installation contract for the Stage 2 development of the Shah Deniz field.

The field is located 90 kilometers offshore Azerbaijan, in water depths from 75 meters to 550 meters. The scope of work of the contract includes the transportation and installation of jackets, topsides and subsea production systems and subsea structures, the laying of over 360 km pipelines, diving support services and the upgrade of the Pipelay Barge Israfil Huseinov (PLBH), Dive Support Vessel Tofiq Ismailov (DSV) and Derrick Barge Azerbaijan (DBA) installation vessels. The project will be completed by the end of 2017.

Commenting on the award, Umberto Vergine, Saipem CEO, said: "The Caspian is a strategic area for the oil and gas industry and we have been working in the region since 1996. We have built a solid and unique presence in the area thanks to our capabilities and expertise in large and complex offshore projects. I'm very pleased that Saipem will be involved in the development of Shah Deniz Stage 2, which will ultimately deliver gas to Europe".

 Saipem has also been contracted by South Stream Transport B.V. to provide supporting works relating to the construction of the second line of the South Stream Offshore Pipeline for a total value of approximately €400 million.

The entire offshore South Stream project consists of four parallel gas pipelines, across the Black Sea from Russia to Bulgaria, each 931 kilometers long, to be laid at depths of up to 2,200 meters.

According to this contract Saipem will perform additional supporting works, including engineering, coordination of storage yards, cable crossing preparation, and connecting the offshore pipeline to the landfall sections through so called "tie ins".

The works relating to the construction of the second line will end by the end of 2016.

This contract is an addendum to the major contract for the first line of the South Stream Offshore Pipeline project signed on the 14 March 2014.

South Stream Transport B.V. is an international joint venture between Gazprom (50%), Eni (20%), EDF (15%) and Wintershall (15%).

Noble Corporation (NYSE: NE) has announced an update to its plan to spin-off Paragon Offshore. Noble expects to effect the spin-off as a dividend of 100 percent of the shares of Paragon Offshore to Noble's shareholders during the third quarter of this year.

As previously announced, Paragon Offshore will own and operate most of Noble's current standard specification drilling business, including five drillships, three semisubmersibles, 34 jackups, and one FPSO. The new company will also be responsible for the Hibernia platform operations. Noble will continue to own and operate its high-specification assets with particular operating focus in deepwater and ultra-deepwater market segments for drillships and semisubmersibles and harsh environment and high-specification segments for jackups.

David W. Williams, Chairman, President and Chief Executive Officer of Noble, said, "The spin-off of Paragon Offshore to our shareholders will be an important milestone in Noble's transformation and will allow each company to have a more focused business and operational strategy. The spin allows us to bring certainty to our shareholders and to both of the Noble and Paragon business organizations.

"I am excited for the future of both Noble and Paragon Offshore. Noble can move forward as an industry-leading high specification and deepwater drilling company, and Paragon Offshore can better leverage its fleet and substantial backlog to focus on the drivers of its particular business segment. In light of financial market conditions, both generally and with respect to the equity markets for offshore drilling companies, we decided to eliminate the initial public offering and accelerate the completion of the separation transaction.

"Each company will have capable assets and great talent that will allow the two fleets to be optimally marketed and operated for the benefit of all shareholders."

The spin-off, which is expected to be tax-free to shareholders, will be subject to approval by Noble's shareholders at the upcoming annual general meeting. Noble will also file a registration statement on Form 10, and the distribution will be subject to such registration statement being declared effective, as well as final board approval of the actual dividend and other customary matters.