Following 3 years of successful operations, N-Sea - the Inspection, Maintenance and Repair (IMR) specialist - has extended its charter agreement with Siem Offshore, concerning its offshore subsea construction vessel, Siem N-Sea, previously Siem Stork. The agreement has a duration of up to 6 years, having begun on January 1, 2015.

The Siem N-Sea is a dive, multi-support and construction vessel, designed to meet the needs of the offshore subsea industry. It is one amongst N-Sea's fleet of six dive support and specialist intervention vessels, designed to deliver a range of subsea services for offshore assets, platforms, FPSOs and renewables operations, with minimal impact made upon production.

N-Sea strives to provide customers with safe, sound and swift remedies, and the ship is equipped with exceptionally efficient azimuth thrusters and a DPII dynamic positioning system for safe and economic operations on a world wide scale. Featuring N-Sea's ground-breaking TUP Diving System®, the vessel is also fitted with complete air and nitrox diving spread and daughter craft, WROV and Obs ROV.

A high focus on reduced fuel consumption through diesel electric propulsion is in keeping with N-Sea's commitment to an improved environmental performance across its fleet.

Commenting on the agreement extension, N-Sea CEO, Gerard Keser said: "N-Sea is extremely pleased to have extended its original agreement with Siem Offshore. It is clear testament to proven capability of both the vessel and the N-Sea team aboard the Siem N-Sea and back onshore. We look forward to the continuation of this excellent working relationship."

N-Sea is known for its innovative work as an independent offshore subsea contractor, specialising in IMR services for the international oil and gas, renewable and telecom/utility industries, as well as for civil contracting communities. With particular focus on North Sea activity, N-Sea provides offshore and survey services to major operators and service companies alike.

The global glut of crude oil is changing traditional storage dynamics by providing incentive for some of the world's largest oil traders to store crude at sea, according to a recent Reuters article.

"The shipping lists (provided to Reuters) indicate the trading firms have been able to hire the Very Large Crude Carriers (VLCC) for less than $40,000 a day - well below spot rates of between $60,000 to $70,000 a day," the article said.

With a contango carry of $8/bbl over the year, a VLCC of 2mbbls has inherent value of 16m$ over this period which equates to 44k$/day, i.e. well above the reported fixture levels (on these older less efficient units) of <40k$/day. The difference of c.5k/day totals c.1.8m$ over the year, which is sufficient to finance the port costs and (heavy) bunker consumption for a load/discharge voyage and for redelivery positioning.

It certainly makes sense, and if the carry continues at these levels, or edge even higher, then we can expect to see more similar VLCC storage fixtures. The units will most likely remain in the vicinity of the loading facility to maintain full discharge destination options. Oil on water numbers will escalate and vessel avails will suffer long term, supporting firm VLCC freight rates.

However, the carry would have to increase to c.15$/bbl over a year to support Suezmax storage and much higher before Aframax units could be considered.

The world's most accurate AIS satellite and antenna network power Genscape Vesseltracker's coverage of global maritime freight vessels, allowing market participants to track vessels of interest in real-time. In addition, the West Africa Crude Oil Report monitors crude loadings and intended destinations, providing insight into critical market drivers. Together, these unique services offer a way to monitor floating storage activity with accuracy to better understand today's evolving storage dynamics. Free trials of both services are currently available by visiting the Vesseltracker and WAF webpages.

Northern Offshore, Ltd. (the "Company") (Oslo Bors: NOF.OL) announces that on January 2, 2015 it issued a Notice of Contract Termination to Oceanic Consultants Nigeria Ltd. (Oceanic), an affiliate of Houston, Texas based CAMAC Energy Inc. (CAMAC) for the Energy Searcher drilling contract. CAMAC guaranteed Oceanic's obligations under the drilling contract.

The Company believes that Oceanic breached various terms of the drilling contract and will be filing a claim for in excess of $50 million associated with this matter pursuant to the arbitration provisions of the contract.

The Company hopes to have the rig demobilized out of Nigeria by late January.

Chevron Corporation (NYSE: CVX) has announced a significant oil discovery at the Anchor prospect in the deepwater U.S. Gulf of Mexico. Anchor is Chevron's second discovery in the deepwater Gulf in less than a year.

"The Anchor discovery, along with the previously announced Guadalupe discovery, are significant finds for us in the deepwater Gulf of Mexico. We had one of our best years with the drill bit in 2014, reporting more than 30 discoveries worldwide and adding an estimated one billion barrels of new resources to our holdings," said Jay Johnson, senior vice president, Upstream, Chevron Corporation.

The Green Canyon Block 807 Well No. 2 encountered oil pay in multiple Lower Tertiary Wilcox Sands. The well, which was spudded in August 2014, is located approximately 140 miles (225 km) off the coast of Louisiana in 5,183 feet (1,580 m) of water and was drilled to a depth of 33,749 feet (10,287 m). Appraisal drilling will begin in 2015.

"Chevron's leading position in the Gulf, where we are expecting further growth in the near-term from recent project startups at Jack/St. Malo and Tubular Bells, is further underpinned by this discovery," said Jeff Shellebarger, president, Chevron North America Exploration and Production Company. "We currently have five deepwater drillships operating in the Gulf, two of which are focused on exploration activities."

Chevron subsidiary Chevron U.S.A. Inc. is the operator, with a 55 percent working interest in the Anchor prospect. Anchor co-owners are Cobalt International Energy, Inc. (20 percent), Samson Offshore Anchor, LLC (12.5 percent); and Venari Resources LLC (12.5 percent).

The 22nd of December saw the delivery by Damen of an innovative new DOC 8500 cable laying vessel to international offshore contractor Van Oord. Named Nexus, the 126-meter vessel is intended for the installation of electricity cables for offshore wind farms. Van Oord is currently making preparations for the Gemini offshore wind farm which will be constructed 55 kilometrers to the north of Schiermonnikoog, one of the Dutch Wadden Islands, and the cable-laying vessel will be deployed initially at that site.

Despite encountering some challenges during the build process, the DOC 8500 was delivered several days ahead of the specified completion date and the entire design, engineering and build took just 15 months. This was particularly satisfying as additional work was also added to the specification after the contract was signed, with additional cable-laying infrastructure being installed prior to handover.

The success of the project was down to a number of factors. The level of cooperation between Van Oord and Damen was highly intensive from the outset, with very short lines of communications between the decision makers on both sides.

An additional factor was the ability of Damen to draw on the expertise on a number of companies within the Damen Shipyards group. Six Damen companies in Romania, Ukraine and the Netherlands contributed engineering and project management expertise; the vessel itself was constructed at Damen Shipyards Galati. The ability to access and coordinate such a diverse range of resources gives Damen a significant advantage when it comes to complex projects such as the DOC 8500.

Equipment installation
The Nexus is now at Damen Shiprepair Vlissingen, where Van Oord is building and installing the additional cable laying equipment.

The Damen Offshore Carrier (DOC) concept was first introduced by Damen in 2012 as a cost-effective smaller heavy transport, offshore installation and ro-ro platform suitable for multiple markets. With its spacious and flush open deck the design is highly adaptable and its modular construction means that it can switch quickly and economically between roles.

Jaap de Jong, Van Oord's Staff Director Ship Management Department, commented: "By working closely together, Damen and Van Oord managed to build a fit-for-purpose and economical vessel in a very short period of time. The Nexus is an asset to Van Oord's fleet and its Offshore Wind Projects business unit."

An animation of the original concept can be seen here: www.youtube.com/watch?v=qN0lDwn8Uk

With so much speculation surrounding the plummeting oil price, the state of the natural gas market has largely taken a backseat. However, gas prices are falling too, but the extent and impact of this varies around the world more than in the case of oil.

Natural gas is a fast-growing source of global energy – in their 2015 Outlook for Energy, ExxonMobil forecast gas demand growth to outstrip oil and coal significantly to 2040. In Asia, where the majority of demand growth is expected, we have seen tumbling prices in recent months. Spot prices in South East Asia have fallen by as much as 50% over the last seven months to around $9/mmbtu at the time of writing, but here is where the story diverges from crude. Existing long-term supply agreements linking gas prices to oil stifle the reaction felt by exporters, while at the same time lead to strenuous renegotiations. The impact of supply agreements – particularly in Asia – exacerbated the decoupling of regional gas prices in 2008/9 where European hubs leant on their greater liquidity and as a result prices rose at a slower rate to 2014.

Even with long-term agreements in place, it will be exporters of natural gas, particularly LNG, that are most concerned. In Japan, the highest priced consumer, LNG prices are widely expected to fall to below $13/mmbtu in 2015. In this environment the arbitrage opportunity for Middle Eastern, American or African producers evaporates. LNG spot trade is perhaps most-exposed and significant volumes are now traded as spot cargoes – amounting to some 30% of the total. Furthermore, Chinese importers have stated their preference for regional production and pipelined imports where the infrastructure is in place – and the infrastructure continues to grow. It's the LNG exporters that face the most pressure in strenuous times.

Natural gas and LNG have a bright future as economies move towards cleaner energy sources. But the next 18 months will be a serious test of the LNG value chain if Asian prices return to European levels once again.

Matt Loffman,

Douglas-Westwood Houston

BMT Nigel Gee (BMT), a subsidiary of BMT Group Ltd, the leading international maritime design, engineering and risk management consultancy, is pleased to announce the appointment of Jason Steward as Business Development Manager.

Jason's new role at BMT will see him support the continued expansion of the business in both new and existing markets delivering design and engineering services within the Commercial, Offshore Energy, Defence and Yacht Sectors.

A University of New South Wales graduate in naval architecture, Jason has over 20 years' experience in the marine market. His previous roles have included Regional Manager for Austal Ships, Consultant to Defence at professional technical services firm Jacobs Australia and most recently Business Development Manager at BMT Design & Technology based in Melbourne, Australia. Jason is a Chartered Professional Engineer (CEng MRINA), a member of the Professional Affairs Committee of the Royal Institution of Naval Architects, and has an MBA in Marketing.

John Bonafoux, Managing Director at BMT Nigel Gee commented: "We are delighted to welcome Jason to the team at an exciting time for the business. He will play a key part in building market share in our existing markets as well as spearheading our diversification into new markets, based around our existing core capabilities and design portfolio."

ConocoPhillips (NYSE: COP) has announced first oil production from the Eldfisk II project in the Norwegian North Sea. 

"Eldfisk II joins Ekofisk South as the second major project startup in Norway since late 2013," said Matt Fox, executive vice president, Exploration and Production. "These projects will increase ultimate resource recovery and extend the field life of this premier legacy asset for years to come."

Photo: Ekofisk - North Sea. Credit: ConocoPhillips

Eldfisk II, along with Ekofisk South and other projects offshore Norway, will add approximately 60,000 barrels of oil equivalent per day to the company's production volumes by 2017.

The Eldfisk II project includes plans to drill 40 new production and water injection wells. One of four pre-drilled wells is currently online, with the remaining three anticipated to come on stream this month. Production from the field will ramp up over the next three years as additional wells are brought online.

The Greater Ekofisk Area, located approximately 200 miles (300 km) offshore Stavanger, is comprised of four producing fields: Ekofisk, Eldfisk, Embla and Tor. Crude oil from Greater Ekofisk's producing fields is exported via pipeline to Teesside, England, and natural gas flows via pipeline to Emden, Germany.

ConocoPhillips (35.1%) operates the Greater Ekofisk Area. The other Ekofisk co-venturers are Total (39.9%), Eni (12.4%), Statoil (7.6%) and Petoro (5.0%).

ASL Environmental Sciences has a contract for a 3-year metocean-ice study program in Cook Inlet, Alaska for the proposed Alaska LNG Project terminal site. This turnkey metocean program includes program management, a PSO (protected species observer), vessel, HSE lead, data processing and analysis, and engineering inputs.

Photo :ASL trawl resistant LowPro5x7™ IceProfiler™/ADCP mooring

During the summer and fall of 2014 ASL deployed 3 Ice Profiler™/ADCP moorings close to Nikiski, Alaska on the Kenai Peninsula. Each mooring consisted of an Ice Profiler, ADCP, CT, and OBS Turbidity and was mounted in ASL's own designed bottom frame or a taut-line mooring. An additional 8 ADCP moorings have been deployed through the northern Cook Inlet June through October 2014. Sediment transport and sand waves will be studied in this highly dynamic area (6 knot currents). In later October the 8 moorings were replaced with 4 custom-built heavy duty frames each containing an Ice Profiler, ADCP, CT and OBS (see Figure 1). ASL will return to the sites biannually to download data and service the moorings.

The Bureau of Safety and Environmental Enforcement (BSEE) announced this week that it is soliciting proposals for oil spill response research projects and will be investing up to $6 million to support these projects in 2015. In a Broad Agency Announcement (BAA) released on the federal government's business opportunities website,

www.FedBizOpps.gov, the bureau called for white papers focusing specifically on one of seven topic areas for proposed research covering oil spill response operations on the U.S. Outer Continental Shelf.

The deadline for submitting white papers is February 9th, 2015. Topics should be limited to the following:

Innovative Methods to Remove Surface Oil under Arctic Conditions;

Decanting Recovered Oil at Sea;

Quantifying In-situ Burn Efficiency;

Innovative New Uses of Chemical Herders to Enhance Oil Spill Mitigation Efforts;

Develop an Innovative Dispersant Spray Drift Model;

Determine the Effect of Various Deep-Ocean Conditions on Dispersant Effectiveness; and

Evaluate Dispersant Effectiveness of Subsea Applications in Ocean Brine Pools.

More information on the BAA can be found here or by searching for the BSEE solicitation E15PS00027 on www.fbo.gov.

Paragon Offshore plc ("Paragon") (NYSE: PGN) has announced that Julie A. Ferro has been appointed Vice President – Human Resources with responsibilities that include human resources, administration, learning and development, performance management, employee relations, recruiting and retention.

Ms. Ferro has more than 18 years of human resources experience working for both public and private companies in the energy and commercial real estate industries including her most recent role as Vice President – Human Resources at Endeavour International Corporation. She also spent three years as a Managing Director for a leading compensation consulting firm in Houston. Ms. Ferro has a BA degree from the University of Houston, and is a Certified Compensation Professional (CCP), a Certified Executive Compensation Professional (CECP), a Certified Equity Professional (CEP), and a certified Professional in Human Resources (PHR).

"We are extremely pleased that a professional of Julie's caliber has joined our management team," said Randall D. Stilley, President and Chief Executive Officer of Paragon. "She brings a wealth of experience to the role which will be critical in ensuring Paragon maintains and enriches the quality and capabilities of our global employee base, key differentiators of Paragon in both our competitive business and a challenging macro environment."

BP's business activities in the US helped generate close to $143 billion in economic impact in 2013 and currently support nearly 220,000 American jobs, according to the company's US Economic Impact Report 2014.

BP's new report provides a detailed, state-by-state look at the breadth and impact of the company's activities in America. Since 2009, BP has invested nearly $50 billion, making it America's largest energy investor. In 2013 alone, BP spent $22 billion with vendors across the country on products and services, ranging from offshore drilling rigs to gasoline-producing equipment for its refineries.

"No energy company has invested more in the US over the past five years than BP," said John Mingé, BP America chairman and president. "Our investments not only provide the energy to power the nation, but they also support hundreds of thousands of jobs that fuel the economy."

BP's business investments in the US include oil and natural gas exploration and production, fuel and chemical refining, lubricants, shipping, trading, renewable energy production and cutting-edge technology research and development. The US also is home to a number of operations that serve BP's global businesses, such as the Center for High-Performance Computing in Houston, which houses the world's largest supercomputer for commercial research.

BP produces more than 628,000 barrels of oil equivalent a day – enough to light nearly the entire country. The company's three northern-tier refineries in Indiana, Ohio, and Washington are together capable of processing more than 742,000 barrels of oil per day. Also, BP's chemical and lubricant facilities supply materials necessary for modern life, including greases and engine oils marketed under the Castrol brand and chemicals used in fabrics and packaging.

In addition to physical assets and energy production, the US is home to nearly 40 percent of BP's publicly traded shares and more BP employees than any other nation. The US also is a center for BP research and recruitment. The company will spend $60 million this year on academic research, educational initiatives, and recruitment activities at more than 50 US universities.

At the corporate level, BP contributes more than $30 million a year to charitable and nonprofit organizations such as United Way of America and the National Multiple Sclerosis Society. This includes contributions through BP's unique Fabric of America program in which BP employees may annually designate $300 of corporate funds to a nonprofit organization of their choice within the United States. Since the fund's 2007 inception, BP has given more than $26 million on behalf of our employees, helping to support roughly 19,000 organizations in all 50 states.

The investments and spending detailed in the report do not include costs associated with cleanup and restoration activities in the Gulf of Mexico, or claims payments related to the Deepwater Horizon accident.

To view or download BP's full US Economic Impact Report 2014, please visit: www.bp.com/EIR.

BP in the US - By the Numbers:

Employees: More than 18,000 employees

Total Jobs Supported: Nearly 220,000 jobs

Employee Payroll and Benefits: $5 billion, including pensions and other post-employment costs

National Economic Impact Nearly: $143 billion in 2013

BP U.S. Investment since 2009: Nearly $50 billion – the most of any energy company

Money Spent with Vendors: More than $22 billion in 2013

Community Investment: $30 million in corporate contributions annually

NYC-based PIRA Energy Group reports that Cushing crude stocks build on tight LLS-WTI spread. In the U.S., there was a rare December stock build. In Japan, crude stocks drew at year-end and remained low as the new year began. Specifically, PIRA's analysis of the oil market fundamentals has revealed the following:

Cushing Crude Stocks Build on Tight LLS-WTI Spread
As WTI prices continued to fall in December, plunging another $17/Bbl, improved takeaway capacity lent support to Canadian and Rockies crudes. Narrower Gulf Coast grade differentials kept the Cushing-Houston arb firmly shut, which, along with year-end tax incentives, contributed to a very large stock build at Cushing. A tightening LLS-WTI spread (currently less than $2/Bbl) will ensure that Cushing receives a major share of the large first quarter U.S. stock build — with stocks likely approaching 80% of capacity by this spring.

Rare December U.S. Stock Build
The last time the United States built inventories in December was in the middle of the financial crisis in 2008. Preliminary weekly data are pointing to a 23 million barrel December 2014 inventory build, 9 million barrels higher than the December 2008 stock build. The way things currently look, the United States did not draw inventories in the fourth quarter, nor did the three major OECD markets combined. Not surprisingly, the "creeping" stock surplus has already become quite apparent, and there will be more to follow. This fear of what lies ahead is damaging to an already extraordinarily weak demand for inventory, which will have to cope with increased inventory supply. A rare bullish catalyst will begin with index rebalancing, which should lead to net new purchases of some 60 million barrels of crude, mostly Brent.

Japan Weekly Oil Data Updates through Year-End and into January 2015
Two weeks of data were reported this past week. Crude runs rose at year-end and then fell back. Crude stocks drew at year-end and remained low as the new year began. Gasoline demand jumped higher due to the holidays and then eased a bit. Gasoil demand was slightly weaker at year-end and then plunged as the new year began, with economic activity off for the holidays. Kerosene demand posted a strong draw at end-year and then a contra-seasonal build. Refining margins remain relatively strong.

U.S. Drivers Buying Less Efficient Vehicles with Lower Fuel Prices
Recent U.S. vehicle sales data suggest that, with lower fuel prices, vehicle purchasers are placing less importance on vehicle efficiency and are buying fewer hybrid and alternative fuel vehicles. Vehicle sales in 2014 have been very strong, and relative to 2013 a higher proportion of these vehicles are SUVs and light trucks, rather than cars. Even a short period of high sales of low-efficiency vehicles can have a long-term impact on fuel demand since vehicles remain within the fleet for longer than a decade — often much longer.

European LPG Price Rout Continues
European LPG prices swooned as the market adjusted to significant discounts in contract prices from Algeria and Arabian Gulf exporters. February propane futures plunged 11.3% to $302/MT, while cash butane was a remarkable 20% lower week-on-week. Large butane cargo prices, at under $280/MT, are back below those for propane, as cracker outages and low blending demand continue to plague the feedstock. Low demand and poor olefin prices will continue to pressure LPG in Europe. High prices relative to naphtha in Asia and expectations of lower Saudi contract prices in February will keep buyers on the sidelines for the time being.

Saudi Arabia Announces Pricing for February Barrels
Saudi Arabia's formula prices for February were released. Differentials to Northwest Europe were lowered across the board $1.40-1.70/Bbl, with the greatest reductions on the lightest grades. Asian pricing was raised across the board $0.55-0.70/Bbl. For the U.S., pricing was raised on Arab Heavy but lowered on all the lighter grades: Medium, Light, and Extra Light. The February differentials appear to focus on individual market pricing particulars as opposed to sending a message of expanding Saudi market share. Economics favored tighter differentials for Asia, while Europe continues to be plagued by an oversupply of Atlantic Basin crudes, hence the cut.

U.S. Ethanol Prices Continued to Pull Back at the End of Last Year
The fuel additive remained above gasoline values, although the premium narrowed. Manufacturing margins declined for the fifth straight week.

Ethanol Inventories Soar
U.S. ethanol production fell to an eight-week-low 949 MB/D the week ending January 2 from 972 MB/D during the preceding week peaking. Inventories soared by 751 thousand barrels last week to a 96-week-high 18.845 million barrels.

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.

Frontier International, specialists in international oil and gas resourcing, has announced a service sector contract portfolio increase from 6 client contracts to 13 client contracts in this sector during 2014.

Well known for providing personnel and associated services to the industry's major operators, the company says the increase can be attributed to recent expansion into the local and international oil and gas service sector. Whilst continuing to work on a substantial number of global contracts with the major operators, this constitutes over a 100% increase for Frontier in its activity within the service sector.

Photo: L-R Mark Clarke, chairman and Paul Radcliffe, managing director, Frontier International

Frontier chairman, Mark Clarke explains that the diversification into the service sector was a clear strategic move: "We are delighted to report on this successful expansion into the supply sector. Over the past two years, a key business development driver for us has been the anticipated long term decline in the UK operator sector, which we are aiming to mitigate by increasing our overall overseas activity and specifically our service sector activity in the UK.unparalleled understanding of the roles for which we recruit. To continue the company's growth, it made sense for us to turn our skills towards the service sector. Blending the disciplines of expert engineering and recruitment allows us to offer a resourcing service like no other, meaning we truly speak our clients' language."

As well as working with the service sector, Frontier also works with the majority of operators, on both a local and international basis. In addition, international client demand has led the company to successfully expand in several key regions, with wholly owned subsidiaries established in India, Tanzania and Trinidad and Tobago.

Greater Baton Rouge Business Report
Daily Report Staff

As crude oil prices continue to plummet, some oil companies are talking about scaling back operations and job cuts. But in the Gulf of Mexico, USA Today reports, business is booming.

Whoever is warning that slumping crude prices will curb oil production hasn't told the tenants of the bustling Port Fourchon on Louisiana's coast. There, cranes line two enormous slips, expanding capacity and building more facilities. Louisiana-based Bollinger Shipyards is constructing four massive dry docks able to serve 300-plus-foot vessels. Workers drive pilings into the ground for what will be the expanded site of Schlumberger, an oil-and-gas technology supplier.

Photo: Edmund D Fountain, for USA TODAY

All this activity soon will cater to huge floating facilities in the deepest waters of the Gulf of Mexico as they drill for and produce crude and other products.

"It's an unprecedented time," Port Director Chett Chiasson says. "This is the busiest it's ever been."

Even as crude's rampant price plunge rattles the industry—as of this morning the price per barrel still was hovering around the $50 mark—the Gulf of Mexico is on the brink of an unprecedented oil boom. Nearly five years after the Deepwater Horizon disaster briefly paralyzed gulf drilling, analysts predict deepwater oil production is headed into one of the biggest growth spurts in history.

Production is likely to reach a peak of 1.5 million barrels of crude a day by 2016, surpassing the previous record set in 2009.

In 2015, production will jump 21% from 2014 levels and grow even more in 2016—adding to America's already bulging oil production, says Imran Khan, a deepwater Gulf of Mexico analyst at energy consultants Wood Mackenzie.

Meanwhile, the number of permits for deepwater drilling increased from 14 in 2010 and 274 in 2011 to 603 in 2014, according to the Bureau of Safety and Environmental Enforcement, which oversees the drilling. Read the full story.

On January 3rd, 2015, at 8.36 a.m. the Valemon gas and condensate field in the North Sea was brought on stream by Statoil and partners. Recoverable reserves from the field are estimated at 192 million barrels of oil equivalent.

"Valemon is one of several new projects on the Norwegian continental shelf that will help add value, activity and innovation, demonstrating well the long-term perspective that characterizes Statoil's activity on the Norwegian continental shelf," says Arne Sigve Nylund, executive vice president for Development and Production Norway.

Valemon is the second Statoil-operated platform to be put into production in the last nine months and also the first new platform to be operated from Bergen since Kvitebjørn came on stream 10 years ago.

The Valemon platform will be Statoil's first platform remotely controlled from shore, turning into a "normally unmanned platform" when the drilling on the field is completed in 2017.

Condensate from Valemon will be piped to Kvitebjørn for processing, and from there to Mongstad, whereas the gas will be sent to Heimdal for processing, and then transported to the market.

Heimdal, which was scheduled to be shut down in 2014, will thus get extended life as a gas hub in this part of the North Sea thanks to Valemon.

"By using the existing facilities at Kvitebjørn and Heimdal, as well as the existing pipelines, we have also reduced the costs of developing the Valemon field," says Nylund.

The Valemon topside was built in South Korea. The topsides EPC contract (engineering, procurement and construction) is a first for Statoil in Asia. The platform also has a high Norwegian content, 80 of the 120 mechanical equipment packages being delivered by Norwegian suppliers.

"The South Korean yard and a competitive Norwegian supply industry have together with a competent project organization ensured project start-up on schedule, with excellent HSE results," says Margareth Øvrum, executive vice president for Technology, Projects and Drilling.

Facts:
– Partners: Statoil Petroleum A/S (operator) 53.77 percent, Petoro AS 30 percent, Centrica Resources 13 percent, A/S Norske Shell 3.23 percent.

– When all wells have been drilled the investments in the Valemon field development project will total about NOK 22.6 billion. The platform will then have 10 production wells.

– Valemon is a high-pressure, high-temperature field.

– The steel jacket and living quarters are built at two yards in the Netherlands, the topsides in South Korea, and 80 of the 120 mechanical equipment packages on board come from Norway.

– The platform has 40 cabins, but during normal operations there will be some 17 people on board. In the longer term the platform will normally be unmanned.