By: Arthur "Alex" Perez
Many non-U.S. companies may owe Uncle Sam federal income taxes if they conduct business on the US Outer Continental Shelf ("OCS"). And the IRS has indicated that it is actively seeking non US companies or individuals who may be performing a variety of activities for the energy industry on the OCS such as: providing services as contractors including seismic testing, drilling, repair, salvage, etc.; owners or operators of non US registered vessels that bareboat or time charter to others; or operating vessels to transport supplies or personnel between US ports and locations on the OCS.
A key question in determining US tax liability is whether a non-US company is considered to be "engaged in a US trade or business" for tax purposes. The IRS applies a fairly low threshold in determining whether companies are "engaged in a US trade or business" and therefore subject to US taxation and reporting requirements. And since the Outer Continental Shelf is considered to be part of the territory of the United States, any non-US business that provides services on the OCS may be subject to US taxation if they are engaged in a trade or business there.
Take for example the case of Bahrain based Adams Offshore Services Ltd, which recently challenged an IRS tax deficiency determination amounting to USD $24 million. The case will be decided in US Tax Court, however, many more companies may be in the same position and can expect to be contacted by IRS.
Even payments for vessels that are chartered out on a bareboat or time charter basis in US waters may be subject to US taxation. US tax law provides that such charter payments for the use of a vessel in US waters are subject to a 30% withholding tax on the gross rental payment. A US payor who fails to properly withhold such payments may be subject to penalties as well.
Foreign companies that fail to properly file tax returns reporting income from their US trade or business may be subject to liability for the delinquent income tax payments, as well as interest and penalties. A significant trap for such companies may include taxation on the GROSS amount of revenue generated by the US trade or business. In other words, foreign companies that fail to properly report their US trade or business may be taxed on gross revenue from the business, without deduction for expenses.
There may be ways to avoid or minimize US income tax liability, but such efforts are generally much more successful if foreign companies engage in tax planning before they receive a call from the IRS.
DNV GL and Subsea Global Solutions LLC., are proud to announce that they have completed an extensive joint research and development program, that will allow permanent repairs to be carried out by underwater wet welding on certain areas of vessels. Subsea Global Solutions' global network of coded welder divers will be available to perform these permanent repairs on a case by case basis utilizing this procedure in suitable locations throughout the world in accordance with the approvals given by DNV GL.
Underwater wet welding
Over the last two and a half years, Subsea Global Solutions welded in excess of 80 groove weld test plates underwater at depth in their training facilities in Miami, Florida, Long Beach, California and Terneuzen, the Netherlands. The non-destructive and mechanical testing of the plates was performed at the DNV GL lab in Hamburg, Germany. All data collected was shared between SGS and DNV GL during this procedure development program.
At the End of April 2014, test plates were welded in the training tank in Miami Florida, with a DNV GL welding engineer in attendance. The non-destructive and destructive testing was again performed at the DNV GL lab in Hamburg. Welding of the plates as well as non-destructive and destructive testing was performed in accordance with AWS D3.6M:2010 Class A. The results of the non-destructive and destructive testing were very positive with all welded test plates exhibiting metallurgical properties equivalent to permanent weld repairs performed "top-side" dry.
DNV GL is pleased to announce that during the SMM in Hamburg, Subsea Global Solutions representatives Rick Shilling (Executive Vice President), Kevin Peters (Vice President) and Uwe Aschemeier (Sr. Welding Engineer) will receive the certificate from Dr. Robert Surma, (Head of Ship Systems & Components, DNV GL) on Tuesday, September 9, 2014 at 16:00 at the DNV GL booth (No. 207 in Hall B4.GF (ground floor), to celebrate this achievement in underwater ship repair and maintenance.
About DNV GL
Driven by its purpose of safeguarding life, property and the environment, DNV GL enables organisations to advance the safety and sustainability of their business. We provide classification and technical assurance services along with software and independent expert advisory services to the maritime, oil & gas and energy industries. We also provide management system certification services to customers across a wide range of industries. Operating in more than 100 countries, our 16,000 professionals are dedicated to helping our customers make the world safer, smarter and greener.
About SUBSEA GLOBAL SOLUTIONS LLC
Subsea Global Solutions (SGS) consists of underwater ship repair specialists Miami Diver LLC, Parker Diving Service LLC and Trident BV. With a dedicated staff of over 100 diver / technicians and welder divers globally, SGS has revolutionized the methods of repair for ship shell plates and equipment underwater. Through a common shared system of dive equipment, specialty tools, and personnel SGS is able to mobilize quickly anywhere throughout the world for repairs of most shell plate, propulsion or underwater equipment. Services include the permanent shell plate repairs, replacement of aft propeller shaft seals, the exchange of thrusters and repair of propellers. SGS has become the Original Equipment Manufacturer's choice for all types of complex repairs. With class approved techniques and a highly trained staff in both underwater ship repair and propulsion equipment maintenance, SGS is the clear choice for vessels operating in sensitive environments and on critical trade routes.
Applus RTD, the global leader in the provision of integrity technology services, will open up a base in Straume, Bergen following the demand for its non-destructive testing (NDT) services in the region.
The new office and test facility, which will be operational in October this year, will serve the local market both onshore and offshore. It will provide in-house and on-site NDT, metallurgic field work and a range of inspection services including rig, paint, derrick and hull inspection.
The new base will staff up to 24 employees, as Applus RTD plans to recruit locally.
Eirik Bjorheim, Applus RTD Norway manager said: "It was an obvious step for us to create a strategic growth plan for Norway in order to meet the demand for our services and underline our commitment to the Norwegian energy sector. With the Bergen office due to open in the next few months, we will now be able to provide on-site support for our existing client base.
"The organic growth of the company will continue throughout next year as we also plan to open up a base in Hammerfest in February, followed by our head quarters in Stavanger next summer. The new head quarters will include a test facility and offshore department to support our operations in the Norwegian North Sea.
"Applus RTD's goal is to be the largest inspection company in Norway by 2017, with around 400 employees in total."
To date, the company has been involved in a number of Norwegian offshore projects, including the execution of vital NDT work at the Vigra Spoolbase with its radiographic pipeline inspection technology, the RTD Rayscan.
Applus RTD is currently developing a number of revolutionary technologies, including its RTD Rayscan, to drive improved reliability and efficiency throughout the testing process.
A Chinese company with both the capital and ambition to strategically expand its influence is the most likely suitor for Citgo Petroleum Corporation (CITGO), which state-owned Petróleos de Venezuela, S. A. (PDVSA) is looking to sell for at least $10 billion, with a Canadian bid also possible, says an analyst with research and consulting firm GlobalData.
Carmine Rositano, GlobalData's Managing Analyst covering Downstream Oil & Gas, states that Chinese companies, such as Sinopec and China National Offshore Oil Corporation, have already invested billions of dollars in Canadian oil sands projects and could use their equity production to supply heavy sour crude oil to the CITGO refineries.
GlobalData asserts that while the assets on offer are strategic to the US energy complex, a Chinese bid would be more flexible in terms of structuring a deal that meets PDVSA and Venezuela's requirements.
Rositano says: "Venezuela currently exports 500 thousand barrels per day (mbd) of crude to China to pay off its $17 billion debts, but additional loans now require a further 100 mbd. Despite extensive reserves, PDVSA has struggled to meet production targets as the government has allocated increasingly less funding to upstream development.
"As such, freeing up crude that would otherwise be sold to CITGO would enable Venezuela to meet its obligations with China."
Another possibility is that a Canadian oil company will bid for CITGO's assets. Suncor and Husky Oil own refineries in the US, with Suncor processing Canadian crudes at its facilities and Husky Oil upgrading its refinery to increase the running of Canadian oil sand crudes.
Rositano explains: "Canadian oil sands crude production is forecast to increase steadily, and the status of proposed pipelines to transport crudes to Canada's west coast for exports is now uncertain, with lawsuits against the proposals pending.
"Purchasing the three CITGO refineries, which are already geared to run heavy sour oil sand crudes, would appear to be a good option for a Canadian oil company."
Although PDVSA has long considered selling CITGO, Rositano believes the timing is now better than ever, and says that reasonable offers are not only likely to be considered, but previous deals suggest that they will be lower than the reported $10 billion asking price.
The Institute of Marine Research (IMR) has selected Optimarin's market proven ballast water treatment (BWT) system for its new flagship Dr. Fridtjof Nansen. The system, currently installed on 180 vessels worldwide, will ensure the NOK 450million (USD 73million) newbuild inactivates marine organisms transported in its ballast tanks, safeguarding the ecosystems examined on its high-profile scientific assignments.
Owned by the Norwegian Foreign Aid Directorate (Norad) and operated by the Bergen-headquartered IMR (Havforskningsinstituttet), the research vessel is a ST-369 design currently under construction at the Astilleros Gondan shipyard in Spain. Upon completion in 2016 it will undertake assignments in developing countries in Africa, Asia and Latin America, assisting in the sustainable management of natural resources.
Optimarin's technology was recommended to IMR by the yard, as explained by Mr. Ceferino Ron, Factory Director, Astilleros Gondan: "The Dr Fridtjof Nansen will be an important vessel with a crucial mission. It was essential that we selected a proven BWT solution with a track record of reliability, efficiency and the successful elimination of all potentially invasive marine organisms. We want all our newbuilds to conform with requirements and operate in accordance to the highest standards, and we're happy to have found a BWT supplier that shares those same values."
Optimarin's system, which utilizes filtration and high doses of UV irradiation to inactivate organisms, is an environmentally friendly solution with full IMO approval, USCG AMS acceptance, and certification through DNV GL, BV, RMRS and CCS. The company's leading market position is built on a history of expertise – Optimarin was the world's first firm to install a marine BWT system, on the Regal Princess in 2000 – with IMR's contract adding to the over 120 units currently in the firm's orderbook.
"An order for a client of this stature, with this reputation, is of great significance," states Optimarin CEO Tore Andersen.
"IMR fully understands the threat that the estimated ten billion tons of untreated ballast water transported annually poses to marine biodiversity, with some 7,000 species carried every day in ballast water tanks. Sustainability, environmental stewardship and responsible operations are essential to their mission, and our BWT solution will go some way to helping them achieve their goals."
The newbuild Dr. Fridtjof Nansen will replace a current vessel, built in 1993, with the same name. It will boast a total of seven laboratories and 32 cabins (sleeping up to 45 people), with a length of 74.5m and breadth of 17.4m. Key operational tasks will include assignments relating to the EAF (Ecosystem Approach to Fisheries) and the Nansen program for the FAO (UN Food and Agriculture Organization).
Dr. Fridtjof Nansen was an oceanographer globally renowned for his crossing of Greenland and the 'Fram' expedition. Nansen, who died in 1930, was also a founder of ICES (the International Council for the Exploration of the Sea) and a celebrated recipient of the Nobel Peace Prize.
From a peak of 396 in 1996, numbers of wells drilled offshore UK fell to 164 in 2013, a low not seen since 1979. Development wells were down from 289 in 1998 to 120 in 2013. Exploration & appraisal drilling, on which offshore production ultimately depends, saw numbers fall from 224 in 1990 to 44 last year. Of these the key driver is of course exploration wells, down from 157 in 1990 to just 15 last year.
However, drilling activity is now expected to increase over the next few years as government and industry reacts to the recommendations in Sir Ian Wood's report – the "Wood Review" – to maximise UK offshore oil & gas recovery. The most significant of these being the need for a new regulator to help industry to work collaboratively and furthermore, to implement various strategies to address problems with exploration drilling and improved oil recovery, amongst other issues. Also stemming from the Wood Review are proposals for a simplified fiscal regime to incentivise investment and drilling activity and ease the burden upon the new regulator.
So what does this mean for the future drilling market? To meet production forecasts, DW expects that total offshore wells drilled will need to grow from 164 last year to 241 in 2018. Whilst the majority of these would be in shallow water and drilled by jackups, deepwater developments in Northern North Sea and west of the Shetland Isles will provide opportunities for semi-submersible drilling rigs. However, in the longer-term drilling activity will again decline, unless the new regulator can effectively use its new powers to incentivise long-term investment from operators to drill more wells and fully exploit the remaining hydrocarbons offshore UK.
Bibby Offshore, a leading provider of subsea installation, inspection, repair and maintenance services to the offshore oil and gas industry, is pleased to announce its continued international expansion with the opening of an office in Stavanger, Norway. The Norwegian office for Bibby Offshore will be headed by Arne Lier.
Bibby Offshore has a leading subsea services position in the UK North Sea and the opening of the office in Norway further increases the company's growing international presence.
The company is currently participating in a number of tenders in the Norwegian Continental Shelf and is focusing on expanding its existing services to offshore operators in the region, benefiting from the depth of relationship that Bibby Offshore already has with the UKCS divisions of many operators.
Arne Lier, who joins the Company on 1 September 2014, is leading the recruitment of further key positions for the Norway office to increase the total headcount to approximately 30 during 2015.
Howard Woodcock, Chief Executive of Bibby Offshore, commented: "The opening of an office in Norway is in recognition of the size and opportunity of the offshore market in the North Sea and specifically in the Norwegian Continental Shelf. Norway is a very important marketplace for us to operate in as the Company looks to grow and expand our international presence."
Arne Lier, Managing Director of Bibby Offshore AS, commented: "The opportunity to lead Bibby Offshore into the Norwegian subsea market is one that excites me. The company has an outstanding track record in managing inspection, repair and maintenance and construction projects and I look forward to bringing much needed, alternative solutions and additional subsea capacity to the operators in Norway. We will aim to grow our capacity and presence in Norway by delivering the same outstanding service for clients that is currently provided in the UKCS, Asia and the Gulf of Mexico."
Arne Lier has extensive oil and gas experience from an international career focused on offshore inspection, repair and maintenance ("IRM"), construction and marine operations, including the role of Senior Subsea Engineer for Statoil early in his career. More recently, Arne has held several executive roles including Chief Executive Officer of Norfield AS and Managing Director of Gulfmark Norge AS. He is currently a non-executive director of Simon Møkster Shipping and has previously been a non-executive director for AGR Group. Arne is a civil engineer, QHSE qualified and a former saturation diver. He has an MBA from Robert Gordon University in Aberdeen, Scotland.
(Houston) ABS, the leading provider of classification services to the global offshore industry, continues to improve construction and integration timeliness with the completion of the Rowan Resolute ultra deepwater drillship. This newbuild, the second in a series for global offshore drilling contractor Rowan Companies, was built in the Hyundai Heavy Industries (HHI) yard in Ulsan, South Korea It joins sister ship Rowan Renaissance as the next high-specification drillship to earn ABS' Integrated Software Quality Management (ISQM) notation.
"Reliance on computer-controlled systems has increased. And verifying software programs - including their integration - is vital to safe and efficient operations," says ABS Chairman, President and CEO Christopher J. Wiernicki. "ABS identified software verification and integration as construction issues several years ago and developed ISQM to address these problems so the time to first production could be reduced."
ISQM represents a change in focus for classification societies that previously focused on the physical assets. ABS' ISQM notation is the first proven approach to providing a clear process for minimizing software-related risk throughout the life of an asset.
"No other class society has classed the drilling equipment and other essential marine equipment with a software notation that addresses software quality during construction, at delivery and into operations," says Paul Walters, ABS Manager.
Rowan Companies, a first mover among drilling contractors in applying a structured software quality management approach, is pleased with the process and has seen the results in the commissioning of the first ISQM drillship, Rowan Renaissance, which left the HHI yard early this year and began operating in late April.
"Following ISQM with the construction of the Rowan Renaissance paved the way so that the second drillship, Rowan Resolute,went even more smoothly," says Greg Lanier, Rowan Software Quality Manager. "Rowan was ahead of the pack in testing this approach and has seen very favorable results, which we expect to be passed on to our customers."
The experience gained by HHI places the yard in a unique position. "By working with ABS and Rowan Companies on this project, we have built up a knowledge base that allows us to offer experience with a new process that will benefit our other clients," says Sang-Sik Yoon, ISQM Team Leader, HHI.
HHI will follow the ISQM process in the construction of the remaining two drillships in the four-unit series.
About ABS
Founded in 1862, ABS is a leading international classification society devoted to promoting the security of life, property and the marine environment through the development and verification of standards for the design, construction and operational maintenance of marine-related facilities.
Halliburton (NYSE: HAL) announces that it has reached an agreement to settle a substantial majority of the plaintiffs' class claims asserted against the company as a result of the April 20, 2010 Macondo well incident in the Gulf of Mexico. The approximately $1.1 billion settlement, which includes legal fees, is subject to approval by the United States District Court for the Eastern District of Louisiana, and will be paid into a trust until all appeals have been resolved in three installments over the next two years. The company's previously accrued loss contingency provision relating to the multi-district litigation proceedings is currently $1.3 billion.
The agreement includes the following:
• Claims against Halliburton that BP assigned to the settlement class in BP's April 2012 settlement,
• Punitive damages claims against Halliburton by a class of plaintiffs who allege damages to property or associated with the commercial fishing industry arising from the Deepwater Horizon Incident, and
• Affirmation that Halliburton has no liability for compensatory damages to the members of the settlement class in the BP April 2012 settlement.
Payments will be held in the trust, pending the finalization of this settlement which is contingent on final Court approval, including any appeals of:
• The BP 2012 settlement with the settlement class,
• The District Court's earlier determination that the contractual indemnity provided by BP to Halliburton is valid and enforceable, and
• The District Court's earlier dismissal of economic damage claims against Halliburton.
Additionally, the settlement is subject to an agreed-upon level of participation by the current claimants which, if not achieved, allows Halliburton to terminate the agreement.
NYC-based PIRA Energy Group reports that oil inventories are higher and crude demand is lower. In the U.S., stock surplus to last year is roughly flat. In Japan, crude stocks draw amid peak run rates. Specifically, PIRA’s analysis of the oil market fundamentals has revealed the following:
World Oil Market Forecast
Oil inventories are higher, crude demand is lower and PIRA is beginning to question the expected 2H 2014 and 2015 lift off in economic activity. Also, add in unrelenting upward revisions to U.S. oil supply growth with non-OPEC supply additions continuing to substantially outpace demand growth and you have a combination of factors pointing to lower prices.
Stock Surplus to Last Year Roughly Flat
This past week’s inventory increase kept the year-on-year overall stock surplus to around 4 million barrels. The crude inventory decline took crude stocks slightly below last year, and at current high run rates crude stocks are still relatively tight, which was reflected in September relative prices. The product stock change reflected lower product imports (to a new low for the year) being offset by weaker reported demand and higher product output.
Japanese Crude Stocks Draw Amid Peak Run Rates, Finished Product Stocks Continue Building
Runs rose fractionally on the week and lower crude imports led to a crude stock draw. Finished products, however, have continued rising amid peak runs. Gasoline demand was higher but is still seen as underperforming seasonal expectations. Gasoil demand rebounded from very low levels. Kerosene stocks continued to build along seasonal norms. All the product cracks improved on the week and our indicative margin indicator rose, but remains rather weak.
Impact of Russian Gas Flow Interruption on Oil Demand
In the low probability event of a complete Russian gas flow stoppage to Europe, oil demand could potentially increase 600 MB/D. In the more likely scenario, still just 30% probability, of a stoppage of flows through Ukraine to Europe, the impact on oil demand would not be material.
U.S. Refinery Turnarounds, September 2014 – December 2015
There was a relatively high level of crude unit downtime during August and the level of both planned turnarounds and other outages carrying over from the current month is expected to increase over the next couple of months.
Freight Market Outlook
A glut of crude oil in the Atlantic Basin has caused the flat price of crude to fall and regional grade differentials with Asia to narrow substantially. The Brent-Dubai spread has narrowed to its lowest value in four years, prompting a significant increase in the number of West African cargoes headed to Asia in August. In addition, the Dubai price structure is now in contango, with forward prices higher than those for the prompt month, making it easier to hedge cargoes on the long voyages from the Atlantic. This is a good omen for VLCC operators as more vessels are tied up on long voyages around the horn of Africa from the Atlantic to Asia. The flip side, of course, is that Mideast liftings to Asia in the fourth quarter will have to decline to make room for the added Atlantic Basin supplies.
Asian LPG Prices to Benefit from Lower Saudi CPs
LPG prices in Asia held steady this week, prior to this weekend’s imminent release of Saudi contract prices for Sept tons. CP futures prices indicate that the propane CP could fall while Asian destination markets show that the butane CP could remain flat or perhaps drop by $10/MT.
Ethanol Demand Soars
U.S. ethanol-blended gasoline manufacture soared to 8,904 MB/D the week ended August 22, up from 8,667 MB/D during the prior week and very close to the record 8,980 MB/D set in May. Ethanol output dropped to 913 MB/D, the second lowest rate of production since April.
U.S. Ethanol Prices Rise in August
Ethanol prices rose in August, after falling during the prior three months. The market tightened as stocks drew by the largest amount since March 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.
Aasta Hansteen and Polarled are moving the boundaries for technology, deep waters and ripple effects on the Norwegian continental shelf (NCS).
llustration: The Aasta Hansteen platform will be the largest SPAR platform in the world. (Illustration: GeoGraphic / Statoil)
"Aasta Hansteen is one of the biggest and most complex industrial projects in Europe. With the Polarled pipeline we are taking the Norwegian gas infrastructure northward across the Arctic Circle for the first time.
"We are building the largest SPAR platform in the world, and we are setting a new depth record of 1,300 meters for a field development and pipeline on the NCS," says Torolf Christensen, Statoil's head of Aasta Hansteen, at a press conference during ONS 2014.
The investments in Aasta Hansteen and the Polarled pipeline total NOK 57 billion.
The plan for development and operation was approved in 2013, and today the project is under development in several parts of the world.
The hull and the topside are being constructed in South Korea, while the equipment packages and subsea facility and pipeline equipment are delivered globally.
The first offshore work started in the summer of 2014 and involves laying of a fibre-optic cable on the seabed and installation of rocks on the seabed for the pipeline. The project is on schedule for production start-up in the third quarter of 2017.
"Aasta Hansteen is a pioneering project with regard to local ripple effects. The development has so far realized more than NOK 400 million in spinoff effects in northern Norway, and more than 200 people are involved in the construction of Aasta Hansteen and Polarled on the Helgeland coast."
"We expect considerable spinoffs in the installation work to be carried out offshore and during production drilling on the field. The main Aasta Hansteen spinoffs will occur in the field's operating phase," says Christensen.
"The Norwegian supplier industry is well positioned in the project execution. Suppliers with a Norwegian billing address are delivering more than half of the equipment packages for the Aasta Hansteen topside. In subsea equipment, 93% is being provided by suppliers with a Norwegian billing address," says Christensen.
"The combination of deep waters, harsh weather conditions and a long distance from existing infrastructure on Aasta Hansteen is unique globally. In order to meet these challenges we have cooperated closely with the supplier industry, and jointly we are developing a new deepwater standard. The expertise we acquire will be applied in new developments both on the NCS and internationally," says Helge Hagen, project manager for the Aasta Hansteen subsea development.
Once again displaying their diversity for use in the domestic petroleum industry, one of Crowley's four ocean class tugs, Ocean Sky, recently provided back-up station-keeping and holdback services during a routine blackout test of ultra-deepwater, semisubmersible oil rig Noble Jim Day. This Shell-leased, Noble-owned rig is currently operating in about 9,600 feet of water in the 508 section of Walker Ridge as part of the Stones Prospect.
As part of routine blackout testing, Crowley was contracted to have the Ocean Sky connect its tow line to the rig, which itself has DP3 technology. The tug's connection was to serve as a contingency in the event the rig required additional assistance, which it did not during the 12-hour drill.
"These tugs have performed above and beyond each time they've been contracted," said Tommy Crosby, manager, sales and marketing, for Crowley's solutions group. "During this drill, we were able to demonstrate yet another feature of these ocean class tugs – tug holding position during stand by operations. These four tugs have repeatedly performed to the expectations of their build including salvage, heavy-lift barge towing, ocean towing and positioning of offshore structures, and standby and response in the Gulf of Mexico during Loop Current features and hurricane contingency planning."
Crowley's ocean class tugs are modern ocean towing twin-screw vessels with controllable pitch propellers (CPP) in nozzles, high-lift rudders and more than 147 MT bollard pull. The first two ocean class vessels, the Ocean Wave and Ocean Wind, are classed as Dynamic Positioning 1 (DP1) tugboats and are twin-screw tugs with an overall length of 146 ft., beam of 46 ft., hull depth of 25 ft. and design draft of 21 ft. The second two tugs of the class, Ocean Sky and Ocean Sun, are classed as DP2 and are 10 feet longer. All four vessels are capable of rig moves, platform and Floating Production, Storage and Offloading (FPSO) unit tows, emergency response, salvage support and firefighting.
The maintenance of blowout preventers (BOPs) has significant financial, logistical and safety implications for drilling operators and rig owners. DNV GL has now established a Joint Industry Project (JIP) to develop a risk-based maintenance methodology with the aim to deliver more effective and cost-efficient BOP maintenance. Several BOP manufacturers, operators, rig owners and shelf state regulators have already joined the JIP, and others may still come on board.
BOPs have traditionally been subject to time-based maintenance, which can create critical challenges, such as unstructured maintenance management, reduced reliability and equipment overhauls, which consequently may lead to increased operational downtime.
"A risk-based maintenance approach aims to mitigate these issues," says Rui Quadrado, project manager at DNV GL Oil & Gas. "Benefits include increased safety and operability by improving BOP performance, the introduction of lifecycle design input and increased maintainability. Ultimately, this should deliver optimal maintenance planning, thereby reducing costs."
Current regulation proposes the use of alternatives to time-based maintenance. The Petroleum Safety Authority of Norway, in particular, has focused on the drilling operators' maintenance functions, and this has increased industry understanding of risk-based maintenance.
"This JIP is looking to put this knowledge into action and provide a Recommended Practice or International Standard in which effective maintenance tasks will be identified and a cost-benefit analysis of these tasks will be evaluated," adds Quadrado. "Our experience and collaborative approach to technical challenges have already demonstrated that risk-based maintenance (through FMECA and RCM analysis) can be successfully implemented on subsea BOPs."
The work will be conducted by DNV GL and supervised by a steering committee. A kick-off meeting will take place on 25 September 2014 in Norway and industry partners are welcome to attend this.
Wild Well Control, Inc., a Superior Energy Services company and a global leader in firefighting and well control, will hold an event to unveil its new subsea capping stack which is available for response to a global deepwater well control incident. The unveiling will be followed by an informational session on the new capping stack to be staged in Singapore, and its predecessor, located Aberdeen.
The event will include presentations, one-on-one interview opportunities and a cocktail hour.
EVENT: Wild Well's capping stack presentations
DATE: Wednesday, Sept. 17, 2014
TIME: 3 p.m. – 5 p.m.
LOCATION: Sheraton Galleria
2400 West Loop South, Houston, TX 77027
INTERVIEWS: The following Wild Well executives will be available for interviews:
Freddy Gebhardt, president
Joe Dean Thompson, senior vice president
Martial Burguieres, vice president marine well services
John Wright, global relief well advisor
Shell announced on Tuesday further exploration success in Malaysia with another gas discovery at the Shell-operated deep-water Marjoram-1 well.
"Our strategy to expand our heartland areas through technologically advanced exploration is delivering tangible success in deep-water in Malaysia," said Andrew Brown, Shell Upstream International Director.
"We have a long history in the region, and the addition of new natural gas resources this year ensures we are able to continue to provide cost-effective, reliable, cleaner energy options for the future."
The Marjoram-1 well is located 180 kilometres off the Malaysia coast in Block SK318, in 800 meters of water. Earlier this year, Shell announced the Rosmari-1 gas discovery, also in this block.
Block SK318 is operated by Shell with an 85% interest, with the remaining 15% held by PETRONAS Carigali Sdn Bhd.
Ocean Specialists, Inc (OSI) announces the addition of Anne LeBoutillier as Director of Global Marketing and Business Development for the firm. Anne is a business expansion professional with extensive strategic marketing and lead generation expertise and broad experience in subsea cable solutions across both telecommunications and oil & gas industries.
Anne joins OSI following her most recent assignment directing marketing and lead generation initiatives for Global Marine Systems, where she helped the company to establish and improve global recognition for their subsea cable installation capabilities in the oil and gas sector. In the commercial telecom sector, she was previously Asia Pacific Director of Business Development for Tyco Submarine Systems (now TE Subcom) and held management positions in business development, strategic marketing and product management with AT&T Submarine Systems. Anne also directed the Asia Pacific regional office for T Soja & Associates, a company that merged with OSI in 2008.
"Anne's extensive success in marketing and business development, coupled with over 20 years' experience in subsea cables for the telecommunications and oil and gas industries make her an excellent addition to the OSI team," stated Jim Byous, President of OSI.
OSI provides subsea network project development, project management and full project delivery to customers in telecommunications, oil & gas and energy industries, and to governments around the world. OSI's project development delivery includes a broad range of services, including network demand analyses, feasibility studies, business opportunity modelling, network design, procurement and construction management and full-service subsea network development and implementation.
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