CGG announces  the creation of two new business lines, GeoSoftware and GeoConsulting, within its Geology, Geophysics & Reservoir (GGR) division:

• GeoSoftware is the worldwide leader in advanced seismic reservoir characterization technology. It brings together CGG's commercial software including Jason, Hampson-Russell and TerraSpark, along with the associated sales, marketing and product services, such as training, product support and product mentoring

• GeoConsulting is a full-spectrum Geological and Geophysical consulting services organization. In addition to CGG's Seismic Reservoir Characterization services supporting its Jason and Hampson-Russell technologies, GeoConsulting offers the company's unique line of Robertson geoscience consulting services and multi-client products including a full range of geological, petroleum engineering and economic disciplines. It also contains NPA Satellite Mapping and all global training services relating to GeoConsulting.

This move consolidates and aligns CGG's expertise in a way that best reflects its customers' needs to help them achieve their E&P goals.

More specifically, through GeoSoftware, CGG will further improve its products and services to provide customers with the best understanding of their reservoirs and deliver unsurpassed expertise and workflows for optimizing decision-making. Through GeoConsulting, the company will further enhance its geological and geophysical multi-client products and reports and expand its high-end consulting services across the E&P value chain.

By bringing together this best-in-class geoscience expertise, this new organization will generate valuable synergies in development roadmaps, technology innovation and multi-client products. CGG will be able to better invest in and expand these key areas of its business, creating new and truly integrated geoscience offerings that draw on the unique knowledge of over 800 CGG professionals working in over 20 key oil and gas centers around the world.

Sophie Zurquiyah, Senior Executive Vice President, Geology, Geophysics & Reservoir (GGR), CGG, said: "Robertson, Jason, Hampson-Russell, TerraSpark and NPA Satellite Mapping are all globally respected brands that underpin CGG's reputation for excellence. Now, by creating a unified software business in GeoSoftware and adding Seismic Reservoir Characterization services to our GeoConsulting business, we have taken the logical next-step in CGG's progression as a fully integrated Geoscience group. Not only does this new organization consolidate and extend our existing businesses, it strengthens CGG's leading position in the high-tech integrated geology & geophysics and reservoir characterization market."

Offshore drilling contractor North Atlantic Drilling has agreed to purchase two next-generation GE Oil & Gas (NYSE: GE) SeaONYX^TM blowout preventer (BOP) control systems, upgrading control spreads on board NAD’s semi-submersible West Venture (left) and drill ship West Navigator. (right)

The SeaONYX BOP control system extends system availability by incorporating multiple redundancies and hot-swappable components to keep operations online. SeaONYX is built upon GE’s proven Mark VIe architecture, at work in more than 2,000 wind, hydroelectric and nuclear power installations worldwide.In addition to improved uptime performance compared to other controllers, SeaONYX is a keystone of GE’s predictive drilling management technology, which helps drillers to address issues before they occur.“Once SeaONYX is on board, the architecture is in place to incorporate a broad array of monitoring and intelligent systems that have the potential to virtually eliminate unplanned downtime,” said Chuck Chauviere, president of Drilling Systems—GE Oil & Gas. “Adding RamTel Plus provides detailed information on the ram BOP’s functionality, while the Drilling iBox can model this data to predict future performance. Armed with this data, the drilling contractor can plan condition-based maintenance at service intervals based around the drilling schedule. The predictivity that GE Oil & Gas delivers for operators means traditional break-fix maintenance can be replaced with a proactive, recommended maintenance model that has the potential to eliminate the lost drilling time that is unavoidable with the old model.”

Blowout preventers are critical pieces of drilling equipment that are used to isolate pressure in oil and gas wells during drilling or close the well entirely in an emergency. The SeaONYX BOP control system is available as an upgrade to existing GE BOP controllers and is included in all new GE Oil & Gas BOP stacks for floating drilling rigs.

In addition to improved uptime performance compared to other controllers, SeaONYX is a keystone of GE’s predictive drilling management technology, which helps drillers to address issues before they occur.

“Once SeaONYX is on board, the architecture is in place to incorporate a broad array of monitoring and intelligent systems that have the potential to virtually eliminate unplanned downtime,” said Chuck Chauviere, president of Drilling Systems—GE Oil & Gas. “Adding RamTel Plus provides detailed information on the ram BOP’s functionality, while the Drilling iBox can model this data to predict future performance. Armed with this data, the drilling contractor can plan condition-based maintenance at service intervals based around the drilling schedule. The predictivity that GE Oil & Gas delivers for operators means traditional break-fix maintenance can be replaced with a proactive, recommended maintenance model that has the potential to eliminate the lost drilling time that is unavoidable with the old model.”

Blowout preventers are critical pieces of drilling equipment that are used to isolate pressure in oil and gas wells during drilling or close the well entirely in an emergency. The SeaONYX BOP control system is available as an upgrade to existing GE BOP controllers and is included in all new GE Oil & Gas BOP stacks for floating drilling rigs.

NYC-based PIRA Energy Group reports that western Canadian and Bakken crude price differentials strengthened in January. On the week, U.S. stocks declined. In Japan, crude and product stocks also drew. Specifically, PIRA’s analysis of the oil market fundamentals has revealed the following:

Western Canadian and Bakken Crude Price Differentials Strengthened

Western Canadian and Bakken crude price differentials strengthened in January, as frigid temperatures in the North slowed production growth, and rail volume continued to rise. Cushing stocks were flat in January, but WTI moved into backwardation in anticipation of large stock draws following the recent startup of TransCanada's Gulf Coast pipeline.

Another U.S. Stock Decline

January has been remarkable with U.S. oil inventories falling over 700 MB/D or some 22 million barrels. This past week contributed 5.3 million barrels of the decline, all of which was in products since crude oil inventories built slightly

Japanese Crude and Product Stocks Draw

Total commercial stocks drew 5.9 MMBbls on the week. Crude runs rose slightly and implied crude imports eased sufficiently to draw crude stocks 2.4 MMBbls. Finished product stocks also drew with declines in kerosene, fuel oil, and a more modest draw on gasoil stocks. Gasoil demand was relatively strong at 960 MB/D. Kerosene demand was surprisingly lower, but a low yield allowed for a strong stock draw rate of 139 MB/D for the week.

Aramco Crude Price Differentials for March

Saudi Arabia's formula prices for March were recently released. Pricing adjustments for the key markers were lowered for Asian destinations on all grades of crude, other than Arab Heavy. The greatest reduction was on the lightest grades, which saw more generous terms by as much as $1.40/Bbl. European pricing differentials were raised across the board, with the greatest increase at the heavy end. Pricing for purchases destined to the U.S. were left unchanged.

U.S. Propane Remains the Market Leader

U.S. propane remains the market leader as low inventories and on-going cold weather provides price support. The economics of moving cargoes from the USGC to either Europe or Asia has turned negative. Indeed, North Sea cargoes are due to arrive in the Northeast, as some U.S. export shipments are also canceled. The redirection of propane to the mid-continent seems to have been effective in taking some of the froth out of the market.

Ethanol Prices Higher

U.S. ethanol prices increased the week ending January 31 as weather-related production problems and rail car shortages persisted. Demand was strong as the manufacture of ethanol-blended gasoline rose to a five-week high, and inventories declined.

Ethanol Output Decreases

U.S. ethanol production declined to a three-week low of 895 MB/D the week ending January 31 from 900 MB/D in the preceding week as brutally cold weather and power shortages limited output. Inventories dropped by 193 thousand barrels to 16.7 million barrels, the largest week-on-week draw since October.

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.

Hoover Container Solutions (“Hoover”), a subsidiary of Hoover Group, Inc., has named Matt Matis as director of sales for the Gulf of Mexico region. Matis is based in Thibodeaux, La., and will work closely with Hoover’s facilities in Port Fourchon, New Iberia and Scott, La.    

Matis will lead Hoover’s Louisiana sales efforts with a focus on the offshore industry while managing several major customer accounts. Additionally, he will work closely with the Hoover and Dolphin Energy Equipment (“Dolphin”) teams to develop an integrated product and service offering to better support customers. Hoover acquired Dolphin, a leading offshore equipment provider, in October 2013.     

“As the Hoover-Dolphin integration continues, we are eager to add Matt’s knowledge, relationships and leadership to our sales team,”said Donald Young, Hoover’s chief executive officer. “His industry expertise will serve as a valuable asset as we continue our expansion into the offshore chemical tank and cargo carrying unit (CCU) market.”

Prior to joining Hoover, Matis worked for Swire Oilfield Services in Houma, La., for seven years where he most recently served as the Louisiana sales manager. Matis graduated with a bachelor’s degree in general studies and a minor in family and consumer science from Nicholls State University. 

Claxton Engineering Services Ltd, an Acteon company, is launching an online promotion in which participants can win a new iPad Air™. Entrants will be asked to correctly identify three Claxton products or services through multiple choice questions. Anyone who works in the offshore industry is welcome to enter, and the products and terms featured in the questions will be recognisable to those working in jack up drilling, decommissioning and structural asset life extension. The competition will be open for entries until the end of April, 2014. Those wishing to participate can enter at www.claxtonengineering.com/ipad. The winner will be drawn at random from correct entries on 30 April, 2014 and notified via email.

No cash alternative is offered and no purchase is necessary. The competition is not open to Claxton Engineering Services Ltd or Acteon Group Ltd employees or their relatives.

PROMOTION:         Claxton Engineering Services Ltd iPad Air™ competition

CLOSING DATE:    Wednesday, 30 April, 2014

TO ENTER:              Visit www.claxtonengineering.com/ipad

About Claxton Engineering Services Ltd:

Claxton, an Acteon company, is the leading supplier of engineering and services for shallow water, jack up depth markets. The company draws on more than two decades of industry experience to provide services for well systems, structures and pipelines across the lifetime of the field – from pre-drilling to drilling, production and decommissioning. Claxton provides first-class tailored engineering and holds a large “on-call” rental inventory. Claxton’s responsive service, alongside numerous field-proven innovations, has established the company an enviable reputation. For more information, please visit www.claxtonengineering.com.

Brunei Shell Petroleum has awarded Maersk Drilling a four year contract for the jack-up rig Maersk Completer for operation offshore Brunei. The contract commences in November 2014 in direct continuation of its current contract with Brunei Shell Petroleum. The contract has options for extension up to a total of three years.

"We are very pleased to continue our cooperation with Brunei Shell Petroleum in Brunei. We see this contract as a recognition of our solid drilling performance and as a further strengthening of our relationship with Brunei Shell Petroleum," says Claus V. Hemmingsen, CEO of Maersk Drilling and member of the Executive Board of the A.P. Moller – Maersk Group.

While operating for Brunei Shell Petroleum, Maersk Completer has shown an excellent performance record, recognised by the award as Shell Jack Up of the Year in 2012 and 2013.
Maersk Completer is one of two Baker Marine 375ft jack-up rigs in Maersk Drilling's fleet. Maersk Completer has been operating in Brunei since it was delivered from Jurong Shipyard in 2007, and since November 2008, Maersk Completer has been operating for Brunei Shell Petroleum (BSP).

National private equity firm Lariat Partners has announced the formation of Ecoserv. By merging Houston-based Newpark Environmental Services, LLC (NES), the region's leader in offshore waste disposal, with Offshore Cleaning Systems, LLC (OCS), the Gulf of Mexico's leader in offshore cleaning services, Ecoserv will become a one-of-a-kind, integrated, turnkey environmental cleaning and waste disposal services provider.

Kenny DesOrmeaux, founder and CEO of Abbeville, LA based OCS, will become CEO of Ecoserv, which will be headquartered in Lafayette, LA and operate out of fourteen (14) locations throughout the Gulf Coast and Permian Basin of West Texas. "Ecoserv uses applied science to provide the safest and most environmentally friendly way of managing oilfield refuse. By combining the efforts of these two industry innovators, we have the scale, breadth, and capabilities to offer a streamlined and hyper-compliant waste disposal system," DesOrmeaux said. "We're pioneering a solution that includes EPA-approved processes but takes them a step further."

Lariat Managing Partner Kevin Mitchell says, "With its vertically integrated business model, Ecoserv will create the most compelling value proposition in the upstream oil and gas industry." Mitchell continued, "Lariat's strategy for all of its investments is to enhance value for our customers, and the formation of Ecoserv accomplishes that in every way."

A definitive purchase agreement has been signed for the merger between NES and OCS, with the full deal expected to be executed within thirty (30) days. The formation of Ecoserv is anticipated to create as many as 100 new jobs in Acadiana. "We believe the talented employees and management of both OCS and NES create a truly best-in-class company. We look forward to demonstrating to our customers the service and value of Ecoserv," DesOrmeaux said

Through water communication and positioning technology company, Nautronix, is pleased to announce a new appointment within the sales team.

Donald Thomson, VP Sales, Global Commercial Acoustics

Experienced Business Development Manager, Donald Thomson has been appointed as the company's VP Sales, Global Commercial Acoustics. He will assume direct responsibility for sales in the global marketplace of Nautronix' product lines; NASCoM Wireless Controls, NASDrill Vessels Systems and NASDive Diver Communications. Prior to joining Nautronix, Donald worked as a hydrographic surveyor before gaining his experience in sales and business development through previous positions at MDL, Nautronix, Schlumberger and latterly One Subsea.

Bob Barrett, Global Sales Manager – NASNet®

Bob Barrett who has been with Nautronix for several months will move into the role of Global Sales Manager for NASNet®. He will be responsible for sales and understanding of NASNet® positioning technology. Prior to joining Nautronix, Bob gained his experience in sales through previous positions within the aerospace and Oil & Gas industry.

Mark Patterson, CEO, comments, "Following a number of years of rapid growth we have recognised we need to increase our sales efforts within Nautronix. I am delighted to have Donald back at Nautronix and focussing his and Bob's efforts on the opportunities we have for our product lines. Their efforts will enable us to continue to grow and develop the business further."

Artificial Lift Company has moved its headquarters to Houston from Great Yarmouth, United Kingdom, Artificial Lift President and Chief Executive Officer David Malone announced.

Situated in the Westchase District near the Energy Corridor, the company's offices and warehouse total 28,000 square feet with 40 employees based at the location. While supporting global operations, its headquarters consist of engineering, manufacturing, operations and general support services.

Artificial Lift Company employees recognize the company's first shipment from its new Houston headquarters.

"As clients recognize the huge cost savings and increased production rates achieved with our unique, rigless ESP deployment system, we find it necessary to increase our engineering, operations and manufacturing capabilities," said Malone. "Our new headquarters provides access to a strong supply base, the required technical expertise and the ability to work more closely with our customers in the expansion of this new technology. Artificial Lift has made a large investment in new testing capabilities and manufacturing capacity, and our presence in Houston positions us to address the growing demand for our systems."

Seatronics Inc., an Acteon company, is moving to a new, purpose-built facility in Houston to expand its rental, sales and service work for customers throughout North and Central America.

The new plant, at 1319 West Sam Houston Parkway North, Suite 150, contains service facilities for cable moulding, connector assembly production and injection polyurethane moulding; along with a state-of-the-art calibration laboratory, an electrical and electronic repair centre and capabilities for gyro calibrations, inertial navigation and Doppler velocity log special services. It will also have an acoustic test tank and a current meter test tank. The facility has 15,000 square feet of floor space, which provides scope for expansion in all departments.

Mark Teles, Seatronics vice president for the U.S., said, “This move is about expanding services and capabilities and establishing a base for increased rental, sales and engineering activities across the Americas. More storage and state-of-the art calibration laboratories, testing bays and cable moulding facilities will mean quicker and more efficient operations, which will benefit existing clients and provide an opportunity for us to broaden our client base. We will be better positioned to take on additional agencies, develop joint ventures and partnerships and promote and support new technologies in new markets.”

David Currie, managing director, Seatronics, said, “Seatronics Inc. has seen exponential business growth across the region and is building on that success. We already have the largest rental fleet of subsea electronics and, I believe, deliver the most professional service of any rental company in the Americas. We offer 24/7 technical support and training on electronic products. This new facility sends a clear message: Seatronics Inc. is growing fast and is ready to move into a larger business arena.”

A grand opening will be held for the new office on Thursday, Feb. 27, 2014. Seatronics will be presented with a DNV plaque to mark the company’s new ISO certification.

Diamond Offshore Drilling, Inc. (NYSE: DO) today appointed Marc Edwards as President and Chief Executive Officer and as a member of the Board of Directors, effective March 3, 2014. Mr. Edwards succeeds Lawrence Dickerson, who announced his intent to retire in September 2013 after almost 30 years of continuous service to the Company.

"We are very pleased to have a proven leader with Marc's experience taking the helm at Diamond Offshore," said James S. Tisch, Chairman of the Diamond Offshore Board of Directors. "Marc's broad experience during his 30 year career at Halliburton will be invaluable for continuing Diamond Offshore's operational excellence and charting the Company's future strategic course."

"I am honored by the opportunity to lead Diamond Offshore," said Mr. Edwards. "Diamond has an unparalleled history of value creation and superior service. I look forward to working with Diamond's leadership team, employees and customers worldwide to expand on Diamond's proud legacy."

Prior to joining Diamond Offshore, Mr. Edwards spent almost his entire career at Halliburton Company, one of the world's largest and most diversified oil field services companies. Starting as a field engineer in Kuwait in 1984, his career took him across the globe with progressively greater management responsibilities; as a member of Halliburton's Executive Committee, he most recently served as Senior Vice President, responsible for the Completion and Production Division, the largest of Halliburton's two Divisions.

Willard Marine, Inc., a leading manufacturer of composite and aluminum boats for more than 50 years, has announced the appointment of Karen Jacquelin as director of marketing.

Jacquelin will be responsible for leading Willard Marine's product and brand marketing strategy, including all advertising, public relations and event marketing initiatives. She will be based out of the company's corporate offices in Anaheim, Calif.

"Karen Jacquelin's vast advertising and marketing experience across a wide range of brands including Gatorade, Callaway Golf, Ford, Lincoln, Toyota and the Irvine Company is extremely valuable to Willard Marine as we strive to elevate our brand image and develop new product offerings," said Ulrich Gottschling, president of Willard Marine. "Karen will leverage marketing analytics and research to help us develop the best products and services that appeal to new market segments and better serve our customers," Gottschling explained.

Jacquelin brings more than 20 years of integrated brand advertising, marketing, and business development experience to Willard Marine. She has held management positions at Young & Rubicam, Xperience Communications and the Irvine Company. She holds both a Bachelor of Arts and Bachelor of Science from the University of Southern California and a California real estate license.

BMT Group Ltd, a leading international design, engineering and risk management consultancy, has announced that Mr Jan Kopernicki (photo) has joined the Board of Directors as a non-executive Director.

Jan has extensive experience in the shipping industry, with his career at Shell spanning over 40 years. As Head of Shipping until his retirement in 2011, his global team was responsible for Shell's portfolio of oil tanker, LPG and LNG vessels and for advising on safety and environmental aspects of shipping. He also served as a member of the Shell Trading Executive Committee and Group Executive Sponsor for shipyard procurement.

He was appointed CMG (Companion of the Order of St Michael and St George) in the 2012 New Year's Honours list for his services to the safety and security of the international shipping community, recognising his role as President of the UK Chamber of Shipping, Chairmanship of the Oil Companies International Marine Forum (OCIMF) and contribution to combatting the threat of international piracy.

Jan is a non-executive Director of J & J Denholm Ltd, Nordic Tankers Holding AB, and the UK Chamber of Shipping. A Leicester University graduate and Fellow of the Society of Biology, he has been active in a number of roles, including Chairman of Maritime UK, Co-Chair of the UK Shipping Defence Advisory Committee, Trustee of the Lloyds Register Foundation and a member of the British Airways International Business Advisory Board. He is an Honorary Captain in the Royal Naval Reserve and President of the Shell Pensioners Association.

Commenting upon his appointment, Jan said: "I am very pleased to be joining such an exciting, innovative and international group, rooted as it is in scientific excellence. I look forward to supporting the continued success of the company and its people."

Dr Neil Cross, Chairman of BMT Group, says: "I am delighted to welcome Jan to the BMT Board. His breadth and depth of industry knowledge and experience will be invaluable to the company as we focus on continued growth and development."

For several years we have been voicing our concerns over a tide of issues facing the oil majors; firstly it seems that their oil production has peaked, then one year ago we noted that the spiraling capital expenditure was unsustainable – some will remember that the likelihood of 'Capex Compression' was the subject of our first 'DW Monday'. And it is now happening. Hess's 2014 spend is to be 30% lower than that of two years earlier, Shell is reducing by 20% compared to 2013, BG's is also set to fall and BP's Bob Dudley has stressed the importance of "capital discipline".

The upstream spend of the publicly listed international oil majors totaled about $270bn in 2013, approximately one-third of industry upstream spend. If we project the trajectory of Shell to the other IOCs then we might expect their Capex to fall by 20% over the next two or three years. This would equate to about 7% of the total industry's annual upstream Capex. The brunt is likely to be felt in the high Capex segment, notably in arctic, deepwater and LNG projects, reflected in our forecasts being somewhat more conservative than other firms.

However, there is the other 93% of Capex to go for, possibly in excess of $650bn in 2014. There are two other important groups of players in the game – the highly innovative smaller independent oil companies responsible for the surging onshore production of oil & gas from the US shales and at the other end of the scale the national oil companies such as Saudi Aramco. The NOCs are typically characterised by long-term spending programmes, and commit to long contracts for equipment and services. The NOCs are in the main continuing their spend – as we will show in a later edition, they are having to drill more and more holes for less and less oil. Indeed, in the latest Barclay's Capital industry survey, the NOC's expected their spend to grow at some 11%.

So what of the impact on the oilfield services companies? The cutback in high Capex projects will impact on the unprepared and those who do not have diversified offerings and client base. But all downturns bring major opportunities for well financed companies able to take the long term view – oil & gas is not a short-term business. Indeed, our research in Middle East tells us that the process of becoming an accepted vendor to NOCs such as Saudi Aramco can take several years.

Finally it must be remembered that E&P is not just Capex – the oil and gas must be kept flowing and the associated maintenance, modifications and operations (MMO) spend keeps slowly ramping upwards.

Douglas-Westwood

Subsea installation contractor, Bibby Offshore, won the Company of the Year award at the 2014 Subsea Expo Awards last night (Wednesday 5 February 2014).

Celebrating the highest performing companies and individuals in the subsea energy sector, winners were announced at the awards ceremony held at the Aberdeen Exhibition and Conference Centre (AECC).

The Company of the Year Award recognises excellence in overall company performance in the subsea sector based on developments to date, as well as plans for future success and growth, both within the UK and internationally.

Bibby Offshore's chief executive Howard Woodcock said: "Being presented with this award is excellent recognition for the continued growth and achievements the company has experienced over the past 10 years.

"Some of our recent successes include the opening of a new division and international base in Houston as part of our continuing global growth strategy, and winning a contract with Centrica Energy worth up to £40million in the largest inspection, repair & maintenance (IRM) contract Centrica has ever awarded. Our Bibby Offshore colleagues in Singapore have also secured significant contracts with Brunei Shell Petroleum, further highlighting the impressive international successes the company is experiencing.

"We have also expanded our fleet considerably with the charter of the Olympic Ares construction support vessel, the Mermaid Endurer and the EDT Jane. We continue to expand our offshore vessel fleet to execute large and complex projects in the UKCS, Denmark and elsewhere in the North Sea, offering our clients greater choice and availability and to gain a leading position in the North Sea market.

"In spring last year the company moved into a new multi-million pound purpose HQ to accommodate our growing workforce. Further growth has resulted in additional expansion this year to develop a nearby workshop and warehouse in order to accommodate our ever increasing staff numbers and services.

"This award really highlights the level of hard work and dedication the Bibby Offshore team put in, and everyone is delighted with the outcome."

Seatronics, an Acteon company, has promoted Phil Middleton to deputy managing director based in the Aberdeen office. Middleton has 18 years' experience in the oil and gas industry and 13 years within the rental market. During this time, he has demonstrated expertise in engineering, operations, commercial and business development.

Middleton's qualifications include a BEng Hons degree in electronic and electrical engineering from Robert Gordon University. He started his career with Scientific Drilling Controls before moving into the survey industry, joining Hydroquip in 1997 where he worked for six years. Following a change of career from assistant workshop manager, he joined Seatronics in 2003 as an internal sales engineer, progressing through the ranks to his new position.

"Having participated in the growth of Seatronics over the past decade, I am delighted with my new appointment as deputy managing director and look forward to expanding Seatronics' footprint in the global rental market," said Middleton.