2H Offshore, an Acteon company, announces the opening of a newly refurbished 16,547 sq. ft. office space, located on the fourth and fifth floors of Hollywood House in the centre of Woking, Surrey. Due to the sustained growth of the company, 2H Offshore upgraded facilities to better service its clients and employees.

John McGrail, director of 2H Offshore UK, said, "The move to our new office is an exciting step in the continual development of 2H in the UK. This office provides a significant improvement in the working environment for our staff, together with the expansion space that we require to achieve our potential."

"Our new office also offers an extensive range of meeting rooms, breakout areas and client office facilities, and we intend use these to build closer working relationships with our clients going forwards."

2H Offshore looks forward to inviting its clients into the new premises and working closely with them in 2014.

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Faroe Petroleum, the independent oil and gas company focusing principally on exploration, appraisal and production opportunities in the Atlantic margin, the North Sea and Norway, is pleased to announce that it has been awarded 10 new prospective exploration licenses, including two operatorships, under the 2013 Norwegian APA (Awards in Pre-defined Areas) License Round on the Norwegian Continental Shelf. These 10 licenses equate to the largest number awarded in this APA round, equal with Centrica and Statoil.

Northern North Sea
The Company has been awarded one license in the northern North Sea. This license offers exciting exploration opportunities in an area with established nearby production infrastructure in the Brage Field:

License PL740 Brasse – Blocks 30/9 and 31/7: Faroe (50% and operator) and Core Energy AS ("Core") (50%). The Brasse Prospect in the Upper Jurassic Sognefjord formation is located south of the Brage field on the possible migration route into Brage. The prospect holds significant upside potential in stacked reservoirs in Upper and Middle Jurassic. The work program will be focused on reducing risk by improving the existing 3D seismic dataset through re-processing.

North Sea
The Company has been awarded four licenses in the North Sea, where the Company already holds a number of licenses, including the Butch oil field, discovered in 2011:

License PL731 Freya – Block 8/10: Faroe (30%), Centrica Resources (Norge) AS ("Centrica") (40% and operator) and Tullow Oil Norge AS ("Tullow") (30%). This North Sea license is located immediately east of the PL405 license which contains the Butch Discovery (Faroe Petroleum 15%). This license extension contains the Upper Jurassic Freya Prospect, which extends into the PL666 Percy license and which is held by the same license group. The work commitment is to perform and complete technical studies already initiated in the PL668 Etta license.
License PL729 Katie – Block 2/1: Faroe (30%), Centrica (40% and operator) and Tullow (30%). The Katie Prospect is an Ula sandstone prospect that extends over the PL668 Etta license and into the new awarded acreage in PL729. The partnership and work program are aligned with the PL668 license, and a future well on the Katie Prospect has potential to be placed in either of the two licenses.

License PL670 B Betula extension – Block 7/11: Faroe (25%), Tullow (30% and operator), Centrica (25%) and Concedo ASA (20%). The Betula Prospect is an exciting opportunity in a mature and prolific area in the vicinity of the Jurassic Ula oil field in the Central North Sea. This new license covers the southern extent of the Betula Prospect. The work program is aligned with the PL670 Betula license, and has no additional work commitments.

License PL733 Adonia – Blocks 9/5, 9/8 and 9/9: Faroe (50% and operator) and Explora Petroleum AS (50%). Two Middle Jurassic leads have been identified on a salt ridge west of the Faroe Petroleum-operated PL620 Lola license located in the Egersund basin. The license contains Adonia, a down-thrown trap, and Stella, an up-thrown three-way closure. The work program is to perform technical studies and consider carrying out a 3D seismic acquisition.

Norwegian Sea
The Company has been awarded one new license in a very exciting immature exploration area east of the giant Ormen Lange field in the North Sea.

License PL749 Seychelles and Maldives– Blocks 6306/4 and 6306/5: Faroe (20%), Centrica (40% and operator), VNG Norge AS ("VNG") (20%) and Petoro AS (20%). The Seychelles and Maldives prospects are located on a structural nose on a down-faulted terrace from the Frøya High. Potential reservoirs are in the Upper and Middle Jurassic. The prospects have been defined based on limited seismic coverage with significant potential for de-risking using new seismic data. The work program consists of 3D seismic acquisition to improve the understanding of the structural and sedimentological setting of the area.

Norwegian Sea, Halten Terrace Area
The Company has been awarded four new licenses in the prolific Halten Terrace hydrocarbon province of the Norwegian Sea. The main focus for all of these licenses is the further exploration of the Cretaceous Lange Formation sandstones, as discovered in the Solberg/Rodriguez discovery, which Faroe announced in January 2013:

License PL475 D Solberg South extension – Block 6407/1: Faroe (30%), Wintershall Norge AS ("Wintershall") (35% and operator), Centrica (20%) and Moeco Oil & Gas Norge AS (15%). This area represents part of the southern extension of the Solberg sandstone system and covers part of the potential down-dip extension of the Solberg accumulation, which was discovered in PL475 in early 2013, and which is the target of the Solberg appraisal well scheduled for drilling in Q1 2014. The work program is aligned with the PL475 Solberg license, with no additional work commitments.
License PL590 B Solberg North extension – Block 6507/11: Faroe (30%), North Energy ASA (30% and operator), Wintershall (30%) and Spike Exploration Holdings AS (10%). This area represents a northern extension of the Solberg sandstone system, which extends across PL590 and into the area of the new license. The area covers part of the potential up dip part of the Solberg accumulation, discovered in PL475. The work program is aligned with the PL590 Milagro license, with no additional work commitments.

License PL754 Aurora – Blocks 6407/2: Faroe (30%), Rocksource ASA (40% and operator) and Centrica (30%). A Cretaceous Lange Formation anomaly has been mapped up dip of the southern extension of the Solberg sandstone system. This is a region where Faroe has a long history and experience through our continuing pursuit of Cretaceous sand systems on the Halten Terrace. The work program will be focused on reducing risk by improving the existing 3D seismic data-set through re-processing.
License PL753 Zircon – Blocks 6407/7 and 6407/8: Faroe (30%), VNG (40% and operator) and Core (30%). This license is located in close proximity to the Njord Field and the PL348 license (Hyme Field and Snilehorn Discovery). An anomaly on 2D seismic in the Cretaceous Lange Formation similar to what has been observed in the Solberg Discovery (PL475) has been identified, covering a large area close to the Njord Field. The work program consists of 3D seismic acquisition.

Graham Stewart, Chief Executive of Faroe Petroleum, commented:

"We are delighted with these license awards, which add considerable new potential to our forward drilling program. Faroe has again been very successful in its license application strategy, and this award is the largest to date for the Company, and indeed in the entire APA round, alongside Statoil and Centrica. This demonstrates the strength of our reputation in Norway and further positions us as having one of the largest license portfolios on the Norwegian Continental Shelf.

"Faroe Petroleum has built a strong and sustainable exploration company, with Norway at center stage. Our significant Norwegian portfolio has a diversified mix of both near-field and frontier opportunities, from which we can high-grade the best prospects for drilling. The combined advantages of Norway's progressive and highly successful fiscal incentivisation for exploration and our own cash generating production ensure we can continue to make Norway a key part of our value creating business strategy."

NYC-based PIRA Energy Group believes that oil prices strongly supported by tight oil supply/demand balances. On the week, U.S. Stock Draw Led by Crude Oil, while Japanese Crude Stocks jumped. Specifically, PIRA’s analysis of the oil market fundamentals has revealed the following:

Oil Prices Strongly Supported By Tight Oil Supply/Demand Balances (Asian Outlook)

Oil prices have been strongly supported by relatively tight oil market supply/demand balances that have lasted through the early part of 2014. As oil markets progress through the first quarter, supply/demand balances will soften and prices will likely weaken from today's levels but the erosion should be limited in scope. OPEC and Saudi Arabia, in particular, have the means to limit declines as output remains in their comfort zone and can be adjusted as needed. 

Massive U.S. Stock Draw Led by Crude Oil

This past week's inventory decline is the largest ever recorded for this particular week and drove the year-on-year stock deficit to 57.2 million barrels, or 5.2%. With reported (four week average) demand running 4.2%, or 780 MB/D above year ago levels, days' supply forward inventory cover is quite low, although not as low as in 2007/2008.

Big Jump in Japanese Crude Stocks

Of note on the week was a huge surge in crude stocks of 10.8 MMBbls as crude imports rose from 3 MMB/D to 5.5 MMB/D. Finished product stocks drew 1.2 MMBbls. While gasoline stocks built slightly, all the other major products drew. Gasoil demand rebounded from abnormally low levels. Kerosene stock draws resumed after a one week increase.

Fracking Policy Monitor

The BLM rules regarding fracking on federal lands remain without a finalization date and the diesel guidance has been mired at OMB for over 115 days. The Congressionally mandated study on drinking water safety – likely to inform regulations post-2016 – also faces issues that may bolster attacks on its legitimacy. PIRA believes that given President Obama’s support of fracking, we are unlikely to see new federal regulations or stepped-up enforcement before November 2014 elections.

U.S. Continues to Show LPG Price Strength

Propane continues to see upward price moves as storage is pulled to record lows, particularly in the Midwest. With the cold returning, and exports and feedstock use on-going, prices will remain relatively firm. Just as the U.S. was strengthening, international markets were relatively weaker, narrowing export arb opportunities.

U.S. Ethanol Production Drops

Ethanol production plummeted to a fourteen-week low 868 MB/D from 919 MB/D the week ending January 10 as frigid weather conditions in the Midwest negatively affected operations at several plants. PADD II stocks rose for the fifth consecutive week, bringing them to the highest level since the end of April 2013.  

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. 

Foster Marketing, a full service marketing communications firm serving the worldwide energy industry, has named Olivia Gautreau (left)and Edward DeClouet(right) as spring 2014 interns within the Lafayette, La., office.

Gautreau and DeClouet’s responsibilities include media monitoring, research and support to the marketing and public relations departments.

Gautreau is a senior at the University of Louisiana – Lafayette (UL) and will graduate in August 2014 with a Bachelor of Arts in public relations and a minor in business. She has assisted with event coordination at Coccolare Spa for Lafayette Chamber of Commerce business networking events. Additionally, Gautreau holds communications experience writing and editing monthly newsletters at Coccolare Spa.

DeClouet is a senior at UL and will graduate in May 2014 with a Bachelor of Arts in public relations and a minor in business. He has held communications roles in Chi Alpha, a student organization at UL, assisting with weekly event coordination, social media monitoring, website development and service projects.

“Foster Marketing is pleased to welcome Olivia and Edward to our team, and we look forward to utilizing and developing their individual strengths,” said Foster Marketing president, Tiffany Harris. “Both interns are eager to learn, and it’s apparent that their studies at UL have adequately prepared them for a communications role.” 

LGO announces that the Company has now started mobilization for the construction of the first drilling sites following the Certificate of Environmental Compliance ("CEC") for 30 new development wells having been formally issued by the Environmental Management Agency of Trinidad and Tobago.  The work at its 100% Goudron Field will start almost immediately and LGO expects to spud the first new well on Goudron since the 1980's as soon as the preparatory works are completed.

Highlights:

·    CEC to drill 30 new wells at the Goudron Field formally approved.

·    Goudron Field has 2P oil reserves of 7.2 million barrels ("mmbbls") and further contingent oil reserves of 63 mmbbls, with an oil-in-place of 127 mmbbls (2P).

·    The first new well, H-18E J-7, will be drilled to approximately 4,000 feet and is targeting net oil sands of 250 feet in the Gros Morne sandstones and a further 100 feet in the Lower Cruse sandstone.

·    Infrastructure improvements to handle the increase in oil production at Goudron are nearing completion.

·    An additional 2,000 barrels of oil sales capacity has also been approved with the CEC.

Neil Ritson, LGO Chief Executive, commented:

"The next phase of our re-development at Goudron is about to get underway.  This is a very exciting phase for the Company and the drilling of these new wells will result in a substantial increase in the Company's oil production.  The minimal facilities that were in place when LGO acquired the asset in 2012 have been significantly upgraded to support the 65 well reactivations carried out so far and the 30 new wells that we are about to drill.  The approval in this CEC of an additional 2,000 barrel sales tank is also critical to medium term growth."

Drilling Update

The 30 new wells approved for the Goudron Field will be targeting known productive intervals in the Goudron, Gros Morne and Lower Cruse sandstones. Each new well is expected to take 7 to 10 days to drill.  Well evaluation and final completion will be undertaken after the rig has been moved to the next well and initial production is planned to commence within 60 days of spudding each well.

A drilling contractor has been selected and other services are being contracted at this time.  The chosen rig is currently undergoing upgrade work and is expected to be available to mobilize to Goudron in late February 2014.

Drill pad construction contracts will now be awarded in conjunction with completing the access road repairs currently underway to accommodate the transport of heavy machinery. A permanent camp, including workshops, offices and off duty rest accommodation has been constructed and is currently being commissioned in readiness for the commencement of the drilling program.

Infrastructure improvement work at the field continues with the reactivation of Tank Battery Station No. 207 nearing completion where the existing tanks have been refurbished to provide an additional 1,000 barrels of storage and water treatment in preparation for the expected increase in oil production.

The first well, provisionally designated H-18E J-7, lies within an area of the field where unrecovered oil is expected to be present in the Gros Morne and Lower Cruse sandstones.  The Lower Cruse at a depth of 2,800 feet sub-sea is the primary target of the well, which will then be deepened to approximately 4,000 feet to ensure all productive horizons are intersected.  Based on the offset wells; including GY-188 (250 feet to the north-east) and GY-64 (170 feet to the north-west), net oil sand of 250 feet is prognosed in the Gros Morne and a further 100 feet in the Lower Cruse. 

LGO is now evaluating the merits of drilling the 30 wells in a continuous program.  Previously, only 2 wells were intended in the next phase to be followed by the balance of the wells after an evaluation phase, however, the deferred start, presence of adequate funding and various economies of scale suggest that a longer continuous drilling program will give improved economic returns.

Goudron Field Reserves

In July 2012, Challenge Energy Limited ("Challenge") independently assessed the Proven and Probable (2P) recoverable reserves from primary production, prior to new drilling, of 7.2 million barrels (mmbbls) and Proven, Probable and Possible reserves (3P) of 30.4 mmbbls.  Challenge's estimates are tabulated below.

It is anticipated that the execution of this 30 well development campaign will move the majority of the 2P reserves to the Proven category and a new competent persons report will be commissioned in the second quarter 2014, once new drilling results have been obtained.

No secondary or enhanced oil recovery, such as water-flooding, had been assumed in these previously reported reserves; although nearby analogous fields in Trinidad have had successful water-flood projects.  Overall recovery without water-flooding is estimated to be just 10% of the oil-in-place which has been computed to be up to 350 mmbbls in the 3P case.  Challenge recognizes a further 63 mmbbls of Contingent Resources associated with a future water flooding project.  If such a project was undertaken it is believed that the overall recovery factor would rise to about 30%.

IPSC with Petrotrin

LGO has a 100% working interest in the Incremental Production Service Contract ("IPSC") granted by the Petroleum Company of Trinidad and Tobago ("Petrotrin") which gives LGO rights to produce oil from the 2,875 acres (11.4 square km) Goudron Block down to 5,000 feet subsea.  The Goudron Field is be operated by Goudron E&P Limited, a wholly owned subsidiary of LGO.

The IPSC was effective from 18 November 2009 and had an initial term of 10 years. On 14 August 2013, LGO successfully concluded an agreement with Petrotrin to reduce substantially the overriding royalty rates associated with oil production from Goudron and to extend the contract by at least five (5) years to November 2024 in consideration for LGO undertaking additional drilling.

The revised IPSC agreement, effective from 1 August 2013, included a reduction of overriding royalty rates for existing and future production in order to incentivize further development and exploration in the Goudron Block.  The 30 well re-development program commencing in 2014 is a direct result of that agreement and will meet, and greatly exceed, the additional commitments made at that time. The new agreement provides that oil production between the First Tranche Oil, which is currently approximately 40 barrels per day ("bopd"), and a rate of about 150 bopd (reducing annually by 2%) will receive a relative reduction of approximately 20% in the overriding royalty paid to Petrotrin. Production above 150 bopd, which Goudron is already exceeding, has a more significant reduction equivalent to approximately 45% of the previously applicable rate at the current oil price.

Language was also included in the revised IPSC that, subject to mutual agreement on work programs, will allow the IPSC to be extended for a period of 5 years in 2019. This extension is significant as it will allow the Company to effectively instigate Enhanced Oil Recovery programs in order to bring the 30 mmbbls of Possible (P3) reserves and some of the 63 mmbbls of Contingent Resources in to Proven (P1) and Probable (P2) reserves over the coming years.

LGO holds a 100% interest in the Goudron Field and all such estimates therefore both gross and net to the Company.

Liftboats have come a long way. Since breaking out of the Gulf of Mexico the global fleet of these self-propelled, self-elevating vessels has grown by over a third and now stands at more than 300 units worldwide. They are now tried and trusted in West Africa, the Persian Gulf and the North Sea. In South East Asia, they are finally gaining a foothold with key operators. Unlike immobile jack-up barges, liftboats offer more, typically performing well intervention, maintenance and installation workscopes. They are now being used for offshore EOR campaigns and we would not be surprised to see a growth in such deployments. The concept is also making a big impact in the offshore wind turbine installation business.

Here at DW, we have been monitoring the oil and gas liftboat markets and as a conservative forecast, we expect the demand for liftboats outside the Gulf of Mexico to increase by more than 3,500 days over 2014-2018. A number of factors will contribute to this, the two most important being their improved specifications and the increased recognition from operators of the value liftboats represent.

With the latest generation of liftboats offering increased water depth capabilities they are able to access an increasing proportion of existing fixed platforms. The increased deck space they offer enables them to carry more equipment, such as coiled tubing or chemicals for well intervention work – here their value is underlined by Halliburton's decision to invest in a fleet of five for its Gulf of Mexico slickline services. But arguably the biggest factor behind the increase in demand will be the attitude of E&P operators who are renowned for their conservatism; their aim in the race for new approaches is usually to finish second. However, despite this, liftboats have broken through. And demand is growing.

Douglas-Westwood

Effective January 1, 2014, Maarten Scholten is appointed Senior Vice-President, General Counsel of Total. He succeeds to Peter Herbel. Maarten Scholten will report to Christophe de Margerie, Chairman and CEO of Total. Mr. Scholten joins Total's Management committee.

Maarten Scholten has almost 30 years of extensive legal and financial experience from the oil industry.

During his 20 years career at Schlumberger, Mr. Scholten served in Senior and Executive positions as Director of Legal Service, Head of Finance, President Schlumberger Oilfield Services ECA (Europe, Africa and CIS), and Director Mergers & Acquisitions/Business Development.

Mr. Scholten holds a Master of Science in politics from the University of Paris (Sorbonne) and a JD Commercial Law from the University of Amsterdam. He is a Dutch citizen.

Chevron Corporation (NYSE: CVX) has announced that its U.K. subsidiary, Chevron North Sea Limited, has reached a final investment decision and received approval from the U.K. government to proceed with the development of the Alder Field in the Central North Sea. The project has a planned design capacity of 110 million cubic feet of natural gas and 14,000 barrels of condensate per day. First production is expected in 2016.

"The Alder Field development is an important milestone in support of our strategic plan to profitably grow production and is among our solid queue of major capital projects that will deliver value to shareholders," said Chevron vice chairman George Kirkland.

"The Alder project builds on Chevron's already well-established presence in the U.K. energy development sector," said Todd Levy, president of Chevron Europe, Eurasia and Middle East Exploration and Production. "For more than 50 years Chevron has been active in the U.K.'s oil and gas industry, and we will continue to play a role in developing the region's natural resources."

Discovered in 1975, development has recently been enabled by innovative technologies to manage the high-pressure high-temperature gas condensate field located in Block 15/29a, in a water depth of 492 feet (150 meters) approximately 100 miles (160 kilometers) from the Scottish coastline and 37 miles (60 kilometers) from the U.K./Norway median line.

The field will be developed via a single subsea well tied back to the existing Britannia Platform, a distance of 17 miles (28 kilometers).

Chevron North Sea Limited operates the project and has a 73.684 percent interest, with co-venturer ConocoPhillips (U.K.) Limited (26.316 percent).

Royal Dutch Shell plc ("Shell") has announced it has agreed to sell its 8% equity interest in the Wheatstone-Iago Joint Venture and 6.4% interest in the 8.9 million tonnes per annum Wheatstone liquefied natural gas (LNG) project in Western Australia for a cash consideration of US$1,135 million to the Kuwait Foreign Petroleum Exploration Company (KUFPEC), subject to closing.

Royal Dutch Shell plc ("Shell") today announced it has agreed to sell its 8% equity interest in the Wheatstone-Iago Joint Venture and 6.4% interest in the 8.9 million tonnes per annum Wheatstone liquefied natural gas (LNG) project in Western Australia for a cash consideration of US$1,135 million to the Kuwait Foreign Petroleum Exploration Company (KUFPEC), subject to closing.

Shell Chief Executive Officer Ben van Beurden commented: "Shell will remain a major player in Australia's energy industry. However, we are refocusing our investment to where we can add the most value with Shell's capital and technology. We are making hard choices in our world-wide portfolio to improve Shell's capital efficiency."

The agreement with KUFPEC, an existing Wheatstone joint-venture partner, ensures there will be no impact on existing commercial agreements.

Coastal Energy Company ("Coastal") (TSX:CEN) (AIM:CEO) announces the successful completion of the previously announced merger (the "Merger") with Condor Acquisition (Cayman) Limited (the "Purchaser"), a newly-incorporated entity controlled by Compañía Española de Petróleos, S.A.U. ("CEPSA") and in which Strategic Resources (Global) Limited ("SRG") is an investor. Pursuant to the Merger, the Purchaser acquired all of Coastal's issued and outstanding shares (the "Common Shares") for consideration of C$19.00 per Common Share with effect from January 17, 2014.

With the completion of the Merger, the Common Shares are expected to be delisted from the Toronto Stock Exchange ("TSX") 2 to 4 business days following closing. In addition, the depositary interests representing Common Shares will be delisted from the AIM market operated by the London Stock Exchange plc ("AIM") with effect from 7:00 am (UK time) on January 21, 2014. Coastal intends to apply to the relevant securities regulatory authorities to cease to be a reporting issuer in the applicable jurisdictions in Canada.
Advisors and Legal Counsel

Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC acted as financial advisors to Coastal. Stikeman Elliott LLP, Cleary Gottlieb Steen & Hamilton LLP and Walkers acted as legal advisors to Coastal. Goldman Sachs International acted as financial advisor to CEPSA. PriceWaterhouseCoopers acted as a financial advisor to CEPSA and SRG. Freshfields Bruckhaus Deringer acted as legal advisor to CEPSA. Blake, Cassels & Graydon LLP, Baker & McKenzie International and Conyers Dill & Pearman acted as legal advisors to CEPSA and SRG.

TETRA Technologies, Inc. (TETRA or the Company) (NYSE: TTI) has announced that its board of directors has increased the size of the board to eleven members and has appointed Mark E. Baldwin and John "Jay" F. Glick to fill the vacancies created by the increase. Messrs. Baldwin and Glick will each serve as an independent director.

Stuart M. Brightman, TETRA's President and Chief Executive Officer, stated, "We are extremely pleased to add the talent and industry knowledge of these two respected executives to our Board. We are looking forward to their contributions as we continue to drive for long-term shareholder value."

Mark Baldwin served as the Executive Vice President and Chief Financial Officer of Dresser-Rand Group, Inc. from 2007 until his retirement in 2013. Prior to joining Dresser-Rand, his career experience included serving as the Executive Vice President, Chief Financial Officer, and Treasurer of Veritas DGC Inc., Executive Vice President and Chief Financial Officer for NextiraOne, and as Chairman of the Board and Chief Executive Officer for Pentacon Inc. Mark led Pentacon through an initial public offering in 1998 and the formation of its board of directors and senior leadership team. He also spent 17 years with Keystone International Inc. in a variety of finance and operations positions, including Treasurer, Chief Financial Officer, and President of the Industrial Valves and Controls Group. Mark currently serves as a director of Nine Energy Service, a private company providing downhole completions services, and previously served as a director of Seahawk Drilling Inc. from August 2009 until February 2011. Mark has a B.S. in Mechanical Engineering from Duke University, and an MBA from Tulane University.

Jay Glick is the former President, Chief Executive Officer and a director of Lufkin Industries, Inc. and oversaw the growth of Lufkin and ultimately the recent sale of the company to General Electric in July 2013. Jay joined Lufkin Industries in 1994 as Vice President and General Manager of the Power Transmission Division. He was elected President and a director of the Company in 2007, and CEO in 2008. He previously served as Vice President and General Manager of the Oilfield Division. Prior to joining Lufkin, Jay held several senior management level positions with Cameron Iron Works, Inc. and Cooper Industries, Inc. for a combined 20 years. Jay received a B.S. in Journalism from the University of Kansas and graduated from the Harvard Graduate School of Business Program for Management Development.

US $ 24 M for the supply of special DHT cable systems for O&G extraction application

This new assignment follows the award as Petrobras "Best Supplier" recently received.

Prysmian Group, world leader in the energy and telecom cables and systems industry, has been awarded a new contract worth approximately US $ 24 million, by the Brazilian oil company Petrobras.

Photo: Prysmian Group's technology and products lie at the core of major worldwide development projects in the OG&P industry

The award refers to special Down Hole Technology (DHT) systems for offshore oil and gas extraction application to be delivered in July 2014, that will be manufactured in the Group's facilities in Bridgewater, NJ (USA) and Cariacica, Brazil, using materials (namely steel) of Brazilian sourcing. DHT systems are technology-driven specialty products for oil, gas and geothermal wells that include Tubing Encapsulated Cables used in individual wells to monitor temperature, pressure, and other parameters to better control flow though overall reservoirs.

Recently the Group has received the annual Petrobras award for Best Supplier of Goods and Services in the Campos Basin (category Goods, section Large Supplies). The award has the target of paying a tribute to Companies that show the best quality levels in the supply of goods and services to Petrobras units in the Region. Competitiveness and performance (including safety and on-time delivery) were among the many criteria for the selection of winners. Other prestigious names in the contest were Halliburton (ranking second in the same category won by Prysmian), FMC Technologies and Ernst & Young.

Prysmian has a long-standing tradition of more than 35 years of technical and commercial partnerships with Petrobras, with Technical Cooperation Agreements and supplies of flexible pipes and umbilicals - both Steel Tube and Thermoplastic- for several projects. In recent times the Group has also been awarded by Petrobras a new major contract related to a frame agreement for Umbilical products for offshore oil and gas extraction worth approximately $ 260 Million (with 50% minimum purchasing commitment and call-off orders to be placed within a two-year period) and the extension to 2016 of the existing frame agreement for flexible pipes, worth a total of $ 95 Million ($ 20 Million have already been called off for the Macabu, Jubarte and Marlim Leste fields).

Within its worldwide industrial footprint, Prysmian Group can rely on 5 production facilities dedicated to SURF (Subsea Umbilicals, Risers and Flowlines ) products: 3 in the Espirito Santo State in Brazil (2 in Vila Velha, for Umbilicals - both Steel Tube and Thermoplastic- and flexible pipes, and 1 in Cariacica, for both SURF products and DHT systems) and 2 in North America (Bridgewater, New Jersey and North Dighton, Massachusetts for DHT systems), a presence that over the past years has allowed Prysmian to diversify and further expanding its activities in the market of technology and products for the OG&P industry.

Statoil has been awarded interests in 10 production licenses in the Awards in Predefined Areas 2013 (APA 2013) on the Norwegian continental shelf. Statoil will be the operator in seven of the licenses.

Statoil has been awarded new acreage in all three NCS provinces - the Barents, Norwegian and North seas. (Photo: Harald Pettersen)

"We are very pleased with the APA 2013 award, which is in line with our strategy. It makes a good basis for further developing the NCS as a core area for Statoil," says Irene Rummelhoff, newly appointed senior vice president for NCS exploration in Statoil.

"The mature areas of the NCS are very attractive. Familiar geology contributes to high discovery rates, while well-developed infrastructure yields high-value barrels," says Rummelhoff.

Statoil has been awarded new acreage in all three NCS provinces:
Barents Sea

40% ownership and operatorship in PL765 - a new license in the Hammerfest basin. We see exciting potential in the area, particularly in some of the more under-explored plays.

Norwegian Sea

40% ownership and operatorship in PL755. This is an interesting area east of Heidrun awarded to secure optimal near-field exploration.

60% ownership and operatorship in PL752 and 20% ownership in PL751 - two new licenses in the less mature Frøya high/Froan basin where we are taking a fresh perspective on traditional and new plays.

North Sea
30% ownership and operatorship in PL745S south of the Valemon field in the Tampen area. Here we will work on near-field exploration opportunities.
50% ownership and operatorship in PL739S. This is an exciting award in a large underexplored area southeast of Oseberg
50% ownership and operatorship in PL072D east of Sleipner to secure a near-field exploration opportunity in a mature area of the North Sea.
20% ownership in PL735S in the central Viking Graben. Here we see an interesting concept along the north-western flank of the Utsira High.
77.8% ownership and operatorship in PL333B. This is additional acreage in the King Lear area.
30% ownership in PL044B - additional acreage in the vicinity of PL044 in the southern North Sea.

Statoil believes that the mature areas of the NCS still offer exciting exploration opportunities. The company is taking targeted steps in order to unlock the full potential of the mature areas, thus maximizing value creation on the NCS.

"In 2012 we established three growth projects within our Exploration Norway team covering the most interesting parts of the Norwegian and North seas. The aim of the growth projects is to leverage our regional knowledge and come up with new creative ideas and exploration concepts. Our APA 2013 application was to a large extent based on the opportunities matured by the growth projects," says Rummelhoff.

Rummelhoff emphasizes that access to new quality acreage is essential for maintaining the NCS production level beyond 2020.
Earlier this month Statoil delivered to the authorities its nomination of blocks for the 23rd licensing round.

New report reveals optimism in the sector but caution over rising costs and oil prices

Amid a positive outlook for the industry in 2014, senior oil and gas professionals have forecasted tighter monitoring of capital expenditure (capex) this year, according to new research published today by DNV GL, the leading technical advisor to the oil and gas industry. While nine in 10 (88%) respondents to the research are confident about the sector, concerns over rising operational costs, a shortage of skilled professionals and competition from international rivals are causing professionals to focus spending on the projects that will provide the greatest return on investment.

According to the report, the proportion of companies planning to increase investment in new projects has declined by 18 percentage points over the past three years, from a high of 63% in 2012 to just 45% in 2014. For the first time since 2011 and the aftermath of Macondo, overall confidence in the oil and gas sector has fallen – albeit only by one percentage point – signaling a shift in sentiment.

The findings come from a new research report, Challenging Climates: The outlook for the oil and gas industry in 2014, which was undertaken on behalf of DNV GL. The research provides a snapshot of industry sentiment about the year ahead and is based on a survey of more than 430 senior oil and gas professionals and in-depth interviews with more than 20 industry executives.

Key findings include:

•    Despite some signs of caution, the overall outlook for 2014 is confident among industry professionals: around nine in 10 (88%) are optimistic about the outlook for 2014

•    Respondents expect to keep a closer watch on costs: six in 10 (62%) intend to pressure suppliers to curb cost increases next year, especially across Asia

•    Uncertainty over oil and gas prices will be more prevalent in 2014: nearly one in four (23%) of industry professionals thinks oil and gas prices will weaken this year, while 36% remain unsure

The report revealed a number of other findings including the skills issue and related to various regions. More about this here:

Shortage of key skills will be greatest barrier to oil and gas industry growth, new research reveals
 

North Sea oil and gas investment softens

New report reveals confidence among Asia Pacific oil and gas professionals 


New report reveals: North America and Brazil to hold greatest growth opportunities for oil and gas industry in 2014
 

Elisabeth Tørstad, CEO of DNV GL – Oil & Gas, says: “Oil and gas industry projects are becoming increasingly complex as the industry continues to operate in more challenging environments. The cost of exploration and production is rising, the industry’s pool of skilled professionals is decreasing and companies are feeling greater pressure on their overheads. This is all leading to great focus and a degree of ‘belt tightening’ across the industry with a view to keeping a tighter rein on capital expenditure. Although confidence is still high, for the first time since 2011 and the aftermath of Macondo, overall confidence in the oil and gas sector has fallen marginally, signaling a slight shift in sentiment.

“We’re also starting to see signs of greater consolidation across the oil and gas industry supply chain. Our research gives clear signs that pressure will be put on suppliers to become more innovative, to reduce costs and to show value in 2014 by providing access to scarce, in-demand skills and by demonstrating real quality in the products and services they deliver.”
 

Greater consolidation 


In response to rising costs, operators will seek to rely on larger supply chain partners which are more capable of providing a consistent global service, according to the report. About one in five (22%) survey respondents says that their company will increase its work with larger partners, compared with just 6% in 2012.
Furthermore, more than a third (37%) of operators say that their companies intend to acquire partners with the specialist knowledge and skills they need as they move into tougher exploration and production sites, with almost half (49%) saying they will need to increase alliances with others to share knowledge in order to cope with more challenging environments.

In turn, DNV GL’s research affirms that operators will focus on controlling risks and costs by seeking greater standardization in their procurement approaches. This gives rise to greater interest in oil companies centralizing, standardizing and streamlining their supply chain to avoid costs in creating new solutions.
Future investment

The report also reveals that the US, Brazil and Australia are the top investment destinations for 2014, with larger operators seeking to expand into challenging new environments such as deepwater sites in East Africa and the Arctic.
 

Download a complimentary copy of Challenging Climates from: http://www2.dnvgl.com/2014-challenging-climates.pdf
 

Pulse Structural Monitoring, an Acteon company, has appointed Mike Campbell (photo) as its new operations director. Based in the UK, he will lead the production, project management and offshore departments and help to manage Pulse's recent geographical expansion.

Campbell brings extensive experience to this role, having been responsible for managing manufacturing, quality, health, safety and environment and supply chain for a group of companies with operations in Europe, Asia, the U.S. and Australia. During his time with IAC Acoustics Ltd, Campbell helped the organisation grow from two to nine manufacturing sites and become the world's largest noise-control company.

Campbell, who studied chemistry at Oxford Brookes University, UK, will apply his supply chain experience to help Pulse deliver complex services to a growing number of clients around the globe and use his knowledge of lean manufacturing methods to help streamline Pulse's manufacturing processes. This will enhance the quality and flexibility of Pulse operations and cut lead times to meet the demanding schedules of offshore clients.

Richard Kluth, managing director, Pulse Structural Monitoring, said, "Mike will make a strong contribution to our continuing success. He has a wealth of experience and is an expert in lean manufacturing. His skills will help to extend and enhance the Pulse products and services offering and help us to manage our global network of offices, including the two facilities we opened in Bergen, Norway and Singapore last year."

Campbell added, "I am very excited to have joined Pulse; this is a great opportunity to join a growing company with an excellent track record. Pulse is ideally positioned to offer world class service and be the company of choice for subsea monitoring. I am looking forward to bringing some of my previous experience to the company and to help with its expansion."

Maersk Line, the world's leading ocean transportation company and a unit of the A.P. Moller-Maersk Group, announces the formation of a regional, containerized shipping company – SeaLand - dedicated to the intra-Americas market. This new affiliate will have a structure similar to Maersk's other successful regional carriers including: intra-Asia carrier MCC Transport and intra-Europe carrier Seago Line. SeaLand will feature knowledgeable, local sales and support personnel positioned in North, Central, and South America, as well as the Caribbean, to meet the unique needs of customers throughout the region. This agile framework will provide greater flexibility and a higher-level of customer-focused service to these local markets. Maersk Line's existing Intra-Americas service network will be the foundation for SeaLand's ocean products.

This new, independent unit will officially commence operations on January 1, 2015. Maersk Line will begin the transition of their Intra-Americas business to SeaLand in a phased approach throughout 2014. The newly established team of approximately 240 highly-skilled personnel will begin their new roles by July 1, 2014. SeaLand will be led by Maersk Line veteran, Craig Mygatt, who will serve as CEO. The company will be headquartered in the United States with exact location to be determined. SeaLand will share specific Maersk Line operational services, such as finance, land-side operations, and HR.

"We heard from our customers that they value Maersk Line services but they required greater service stability and commitment. That's one of the key reasons why we're responding with an improved, restructured solution for the Intra-Americas," commented, Craig Mygatt, CEO, SeaLand. "We look forward to developing strong, enduring customer relationships as the new SeaLand organization."

"This reorganization is an investment in our global container business. It enhances and strengthens service in this important and growing trade region, as well as the future of our overall global service network," said Vincent Clerc, chief trade & marketing officer, Maersk Line.

Robbert Van Trooijen, Chief Executive, Maersk Line Latin America and Caribbean said, "This new Intra-Americas commitment will meet the needs of Latin American customers that ask for local, customer specialists that are empowered to act quickly and respond to changes in the market. We have a long history in this region that will set the foundation for future growth."