Total has completed the flare out of the Ofon field on Oil Mining Lease (OML) 102 offshore Nigeria. The associated gas of the Ofon field is now being compressed, evacuated to shore and monetized via Nigeria LNG.

"The flare-out of the Ofon field illustrates our commitment to developing oil and gas resources around our existing hubs in Nigeria. This important milestone of the Phase 2 of the Ofon project was achieved in a context of high levels of local content," commented Guy Maurice, Senior Vice President Africa at Total Exploration & Production. "The flare-out on Ofon is also significant for Total's environmental targets, representing a 10% reduction in the Group's E&P flaring. This achievement is a clear demonstration of Total's commitment to the Global Gas Flaring Reduction Partnership promoted by the World Bank."

The Ofon field is located 65 kilometers from Nigerian shores in water depths of 40 meters. The field initially commenced production in 1997 and is currently producing about 25,000 barrels of oil equivalent per day (boe/d). This flare-out milestone will allow for the gradual increase of production towards the 90,000 boe/d production target through monetization of around 100 million cubic feet of gas per day, followed later in 2015 by the drilling of additional wells. The execution of the project also involved significant local content, including the first living quarters platform to be fabricated in Nigeria.

Total E&P Nigeria operates OML 102 with a 40% interest, alongside the Nigerian National Petroleum Corporation (60%).

Total Exploration & Production in Nigeria

In 2012, Total celebrated fifty years of its presence in Nigeria. The Group's production in Nigeria was 261,000 boe/d in 2013.

Deep offshore developments are one of Total's main growth avenues in Nigeria, where the Group operates the Akpo field in OML 130 and launched the development of the Egina field in the same lease in 2013.

Offshore production also comes from OMLs 99, 100 and 102, which are operated by the Group as part of a joint-venture with NNPC. The main fields in these leases are Amenam-Kpono, Edikan and Ofon.

Total's onshore production comes from OML 58, which it also operates as part of its joint-venture with NNPC. A project is underway to increase the lease's natural gas and condensate production capacity to supply the domestic market.

In addition, Total has significant equity production in Nigeria from its interests in non-operated ventures, particularly the SPDC-operated joint venture (10%) and the Bonga field (12.5%). Total also has a 15% interest in Nigeria LNG, which operates six LNG liquefaction trains on Bonny Island with a capacity of 21.9 million metric tons per year.

Total deploys an assertive policy to create in-country value in Nigeria - the Group is helping Nigerian contractors to build deep offshore expertise, especially in the Niger Delta, a region that is home to more than half of Total's Nigerian employees and most of its operations in the country. Local content accounted for 60% and 90% respectively for Usan and the onshore OML 58 projects, and is likely to reach 75% for the deep offshore Egina development.

BW Offshore and Seagull Oil & Gas are cooperating to develop industry-leading training material for the offshore industry.

Building on a training relationship stretching back almost two decades, BW Offshore and Seagull are developing new training material to cover BW Offshore's process and production operations.

"This is a great opportunity for Seagull Oil & Gas," says Morten Aasen, Managing Director, Seagull Oil & Gas. "We have the ambition to offer the most comprehensive training library for the oil & gas industry, and BWO Offshore is an ideal partner for us. To support our ambition we have acquired all intellectual rights of the educational material developed by Norwegian Petroleum Academy. This is the official educational material used by technical colleges in Norway. We are building a comprehensive e-learning library based on the educational material, and by partnering with industry leaders like BW Offshore we aim to offer exactly what the industry needs."

"BW Offshore has an ambition to always be at the forefront when it comes to training of our offshore crew," says Dagfinn Hatleskog, BW Offshore Senior Vice President Oceanic Fleet. "We have worked with Seagull for many years on the maritime part of our operations, and we are delighted to see that Seagull now also focuses on production and process related topics. Seagull and BW Offshore share the idea that training is most effective offshore using real equipment, where the crews are already on duty."

CGG provides its vessel utilization and fleet allocation updates for the fourth quarter of   2014.

 Solid Vessel production rate for the fourth quarter of 2014:

• The vessel availability(1) rate was 87% due to typically high transit at this time of the year. This compares to an 83% availability rate in the fourth quarter of 2013 and a 92% rate in the third quarter of 2014.

• The vessel production(2) rate was 92%. This compares to a 90% production rate in the fourth quarter of 2013 and a 92% rate in the third quarter of 2014.

• During the fourth quarter of 2014, our 3D vessels were allocated 64% to contract and 36% to multi-client programs.

Record quarterly multi-client sales for the fourth quarter 2014:

CGG anticipates multi-client sales around $290 million during the fourth quarter of 2014, the highest ever quarterly revenue.

Significant client commitment for our StagSeisTM Gulf of Mexico program but also sustained multi-client sales in the North Sea, West Africa and Latin America drove multi-client revenue to this mark.

Jean-Georges Malcor, CEO, CGG, said: "Our outstanding level of multi-client sales this quarter is clearly positive news given the unfavorable context of current oil prices. It also confirms client recognition of our excellent technology and the unique strategic positioning of our multi-client library in key sedimentary geological basins."

Tesla Offshore LLC, a leading offshore survey service provider, has announced the retirement of Randall P. Bergeron (left) as President and CEO of the company effective December 15, 2014.

It was also announced that Tesla Offshore co-founder, and current Senior Vice President of Sales & Marketing, C. D. Schempf, Jr., (right) will assume the leadership role as President of Tesla Offshore. Fellow co-founder, Donald W. Spicer, will continue in his role as Senior Vice President and General Manager of the company.

In a message to Tesla Offshore employees, Bergeron said that while his tenure at the helm has afforded him a wealth of life experiences and professional relationships with remarkable people from around the world, in all of his thirty-four years in the industry, " ... nothing has compared to the privilege of leading the employees of Tesla Offshore LLC and the joy of watching our families grow and prosper together as we set out to provide the best possible survey services available". Beginning in early 2015, Bergeron will assume the role of Executive Director of Tesla Offshore LLC, and continue to contribute as a valuable member of Tesla Offshore leadership.

C.D. Schempf, Jr. is a nineteen year veteran of the offshore survey service industry and, together with Bergeron, Spicer and two others, established Tesla Offshore LLC in 2004. Then, as now, the company adheres to a simple, yet uncompromising, business philosophy: Demand integrity of yourself and your co-workers; Offer only the highest quality compliant products and services; and, Focus on customer satisfaction as the best measure of success. That these characteristics remain a guiding force at Tesla Offshore today is no accident, says Schempf, but a conscious commitment "to keep integrity, quality and regard for customer service as the primary focus of business relationships today and into the future".

McDermott International, Inc. (NYSE:MDR) ("McDermott") announces that it has been awarded a contract to install the offshore jacket, deck and piles for the Ayatsil-A drilling platform for PEMEX Exploracion y Produccion ("PEMEX") in the Bay of Campeche Ayatsil field. The value of the award is included in McDermott's fourth quarter backlog.

Ayatsil-A jacket loaded onboard the Intermac 600 transportation and launch barge, ready for installation. (Photo: Business Wire)

"The Ayatsil-A installation award from PEMEX is a direct result of the substantial local capabilities and operations of McDermott in Mexico, and our demonstrated track record of safe and reliable platform installations for PEMEX in the Bay of Campeche," said Dominic Savarino, Vice President and General Manager, Americas. "Our unique ability to mobilize our versatile marine resources including the heavy-lift vessel, Derrick Barge 50, capable of lifting surface loads up to 4,400 tons, and the Intermac 600 transportation and launch barge was a critical component of the successful award for this fast-track installation project."

The Intermac 600 will launch the 8,400-ton jacket and the heavy-lift Derrick Barge 50 will complete the installation of the jacket, a 3,400-ton deck and other platform components in waters 400 feet deep. The total weight of the facility is approximately 15,800 tons.

The Ayatsil field is the largest discovery for PEMEX to date and is expected to boost production for the country by 150,000 barrels of oil per day. This contract award follows the successful delivery of the Ayatsil-B eight-leg jacket and deck by McDermott in July of 2014.

2H Offshore, an Acteon company, has teamed up with oil and gas industry leaders to develop a new design guideline for thermoplastic composite pipes (TCP) to advance the understanding and use of composite materials in the offshore industry. The Joint Industry Project (JIP) began in October and will take a year to complete. 2H teams in London, UK, and Houston, USA, are actively involved in the JIP. The work will build on existing knowledge and guidelines to achieve an industry accepted standard.

Tim Eyles, managing director, 2H, said, "Our involvement in this JIP underlines our commitment to supporting the use of composite materials within the offshore industry. Composite pipes have many advantages. Their good fatigue performance and reduced cross-sectional weight may help to overcome technical challenges in the industry, especially in deeper water and harsh environments. 2H has experience in using composite materials in risers and is committed to using emerging technologies to find the best technical solutions to meet the needs of our clients."

Leading international oil and gas service company, ASCO, has secured a new contract for the provision of supply base services in Sandnessjøen, Norway by Statoil, commencing in July 2015.

The ten-year contract, with a value of between US$22 million and US$25 million (NOK 100 – 130 million), is for supply base services in support of Statoil's drilling and operational activities in the Northern part of the Norwegian Sea from Sandnessjøen, including the Norne, Urd and Aasta Hansteen fields.

The contract scope of supply includes the provision of warehouse management, terminal handling, oil country tubular goods (OCTG) handling, as well as management of Statoil and BP's joint subsea base in Sandnessjøen. In addition, the six-year contract has two further two-year options.

Runar Hatletvedt, Managing Director for ASCO Norge said: "This is a significant win for ASCO Norge that highlights the strength of our expertise as well as our proven track record in oilfield support services in the region. We look forward to working with Statoil in Sandnessjøen."

ASCO also manages a supply base in Mtwara, Tanzania, on behalf of Statoil, BG, Petrobras and Ophir.

Increase needed to keep pace with inflation, preserve deterrent effect

As part of the Obama Administration's ongoing efforts to ensure the safe and responsible production of domestic offshore energy resources, the Bureau of Ocean Energy Management (BOEM) has administratively increased the limit of liability for oil-spill related damages from $75 million to approximately $134 million for offshore oil and gas facilities. This is consistent with recommendations to increase the liability cap from the National Commission on the BP Deepwater Horizon Oil Spill and other studies and represents the maximum increase allowable under the Oil Pollution Act of 1990.

"BOEM is taking an important step to better preserve the "polluter pays" principle of the Oil Pollution Act and further promote safe and environmentally responsible operations," said Acting Director Walter Cruickshank. "This is the first administrative adjustment since the Oil Pollution Act was enacted in 1990 and is needed to keep pace with inflation, which has increased 78 percent since then."

The administrative adjustment to the Oil Pollution Act of 1990 liability cap for offshore facilities is based on the significant increase in the Consumer Price Index (CPI) that has occurred since 1990. The liability cap is set by statute and may only be adjusted to address significant increases in the CPI. The increase to $134 million represents the maximum increase that may be implemented absent new legislation.

The increase applies to facilities handling oil and gas in federal and state waters seaward of the coastline. The liability cap applies to damages that result from oil spills, but does not apply to other liabilities such as oil spill removal costs, which remain unlimited. The rule also contains a mechanism to regularly update the limit of liability cap in the future to reflect changes in inflation over time based on the CPI.

The change to BOEM's regulations was proposed in February and the bureau fully considered all stakeholder comments before enacting this rule that will go into effect in January 2015.

Bibby Offshore's Houston-based division, Bibby Subsea (the "Company"), has signed a three year contract with Bordelon Marine to charter a new vessel. The Brandon Bordelon (photo) is an ultra-light intervention vessel (ULIV) and will commence a three year charter in August 2015 primarily operating in the Gulf of Mexico. The addition of the Brandon Bordelon to Bibby Offshore's existing international fleet of specialized vessels enhances the capability throughout the Americas region.

The purpose built, high specification Brandon Bordelon vessel provides a versatile and cost effective approach to a variety of operations, including IMR operations (inspection, maintenance and repair), light construction, survey and inspection work.

Since its inception, Bibby Subsea has experienced significant client demand for its service offering, which continues to increase across North America. In November 2014, the Company also announced investment in a custom-built facility. Located in the Houston Energy Corridor, it is set to strengthen the Company's presence and enhance its on-the-ground support for clients in the region.

Bordelon Marine is a leading provider of marine transport services to the oil and gas industry in the Gulf of Mexico and around the world. The Brandon Bordelon's sister vessel, the Connor Bordelon, received 2014 American Ship Review Ship of the Year Award.

Andrew Duncan, President and Managing Director of Bibby Subsea, said:
"Signing a contract with Bordelon Marine for this new ULIV allows us to offer clients a cost effective and efficient alternative to other options currently available in the light intervention market.

"Over the past ten years Bibby Offshore has established a significant international presence and is a leading provider of IMR support and subsea construction services in the UK North Sea, with a proven track record of providing quality assets and people to their established client base. We are committed to bringing those principles to the Americas region."

Wes Bordelon, president and CEO of Bordelon Marine commented:
"The contract with Bibby Subsea underpins our commitment to providing a first class service to the Gulf of Mexico region and significantly increases our offering to this highly specialised market. As a family owned business ourselves, we are aligned with Bibby Offshore's ethos to provide excellence while maintaining the health, safety and well-being of our customers, colleagues and the environment."

NYC-based PIRA Energy Group believes that it is too early to get long oil. In the U.S., the stock surplus jumps. Specifically, PIRA's analysis of the oil market fundamentals has revealed the following:

It Is Too Early to Get Long Oil
The bulk of the first-half 2015 inventory builds will be in crude oil. As crude inventories build, more expensive storage will be required, which will relatively weaken prompt prices; that is, widen the contango. This can only be mitigated by an increase in inventory demand from currently depressed levels. PIRA believes that such an increase in demand is unlikely to be strong enough to offset the weight of the impending increase in inventory supply. In such an environment, it is very difficult for prompt crude oil prices to rally.

U.S. Stock Surplus Jumps
The global imbalance between supply and demand compared to last year is vividly apparent in the U.S. stock data. From a 9 million barrel excess in 2013, beginning the fourth quarter, it has now expanded to 85 million barrels as of December 26. This is an increase of around 10 million barrels versus the week earlier. 2013 stocks decreased this past week while in 2014 they increased. Crude stocks are now 25 million barrels higher than in 2013, having begun the quarter 7 million barrels lower. From deficits last year beginning the fourth quarter, gasoline and distillate stocks are now higher.

Latin American Oil Market Report
Latin American refinery runs will increase in 2H15 driven by the startup of a new refinery in Brazil and the restart of revamped capacity in Colombia. Latin American product imports will level off, breaking the growth trend of the last few years. The U.S. will remain the primary supplier of products for import into the region.

Closed U.S. Refineries Contribute to Overall Downtime
Permanently closed refineries in the U.S. have had a significant affect in lowering crude run demand and subsequent gasoline and distillate productionLatest market developments..

India Quarterly Oil Demand Monitor
India's recent economic performance was somewhat disappointing, as GDP expanded by an estimated 5.3% during 2014. Growth prospects have improved, however, as lower oil prices will allow households and businesses to increase spending and the central bank to loosen monetary policy. Vehicle ownership continued to rise, in spite of stagnant sales. End-user oil prices dropped sharply in recent months, including those for diesel. PIRA projects a moderate oil demand increase of 130 MB/D (3.3%) for 2015. But upside potential is significant, given how declining prices boosted India's oil demand in the past.

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.

LQT Industries, LLC, a full-service provider of high quality accommodation facilities, design-build construction services, and support services to the oil and gas industry, has been awarded a contract for the construction of ten (10) modular units that will be utilized onboard a commercial vessel.

The outfitting will consist of both hardcore and softcore wall systems to increase the comfort and aesthetics of the buildings. Several of the modules will be constructed to tie together and open to one another creating larger rooms and interconnecting corridors. These modules will be built to USCG and ABS Class standards. The project is scheduled to be completed and delivered in March of 2015.

LQT had to compete against an international backdrop of suppliers. The customer stated, "It was LQT's engineering expertise and experience coupled with the ability to deliver in a short timeframe that helped secure the order."

Construction will take place at LQT's Construction Facility in Abbeville, LA, which specializes in designing and fabricating various types of modular structures including MCC buildings, accommodation buildings, and subarctic facilities. LQT has recently completed the expansion of their Abbeville facility to include a larger indoor fabrication area to accommodate additional projects.

Oil & Gas Veteran Sees More Opportunities in Low Oil Price Environment

ABIS Projects has won a clutch of contracts worth around £1million over the next 15 months. The oil and gas project services consultancy has secured frame agreements and call-off contracts with ADTI, Hunting, Talisman Sinopec and North Sea newcomer, MOL.

Aberdeen-based ABIS Projects is working with these new clients providing multi-discipline resources covering business strategy, acquisitions, risk, projects and management systems across the supply chain.

Francis Kiernan, who acquired an interest in ABIS Projects earlier this year, said: "With the considerable drop in oil price, the focus in the North Sea once again turns to innovative ways of working which will deliver cost-efficiencies and greater value. A one size fits all approach is no longer sustainable. The ability to take a commodity, whether it be intellectual property, material, goods or supply chain risk and turn it into a value proposition is now required".

The oil price has dropped by more than 25% in recent months and Mr Kiernan said that this is exacerbated by high production costs. "Unit operating costs have risen 62% since 2011. The industry has lost sight of achieving optimal value for minimal cost. We need a much better alignment of cost and value."

Mr Kiernan, who has been involved in the oil and gas industry for over 30 years, has been through several downturns. He said: "The cyclical economics of oil and gas are nothing new and we are already dipping into a downturn. I reckon we will have three years of challenging times before we get back to the highs of this summer. And these challenges are going to be similar to the ones we faced in the early nineties when the UKCS contracting model changed dramatically, when there was fundamentally a balance sheet transfer from the oil company to the supplier."

During this coming period, companies will be focused on doing things smarter. Mr Kiernan believes that oil companies will be more willing to look at creative opportunities to work with suppliers who have the flexibility to expand in a contracting market because they are willing to work more innovatively.

"While this is not good news for the big service companies, who need to pursue volume and service their overheads, it is good news to the smaller companies who can interpret and deliver what an oil company needs and meet that need through a boutique service with high-end intellectual property and value.

"Smaller, nimbler oil companies, like MOL, have clear terms of reference and want to engage with suppliers on how they can really work together to deliver value and not just add cost," Mr Kiernan said. "Suppliers, like Hunting Energy Services, who are growing and maturing with a unique offering in the marketplace, are able to offer what their customers want which is a reduction in inventory and capital balance to allow their clients to shift their focus forward to exploration and development."

Mr Kiernan is also forecasting opportunities in the Norwegian sector for UK companies. He explained: "Norway has invested heavily in best-in-class technology and operations but the Norwegian Continental Shelf (NCS) has reached a production plateau. Having peaked in terms of high end capital investment, the NCS must now embrace more effective business models and contractual arrangements to regain competitiveness. This will lead to the recalibration we saw in the UKCS in the nineties, which until now, Norway has resisted and potentially open up opportunities for UK companies who learnt the lesson of optimal value for minimal cost and are prepared to return to this mind-set."

Mr Kiernan has served as a of several companies in the UK and Scandinavia including Nexus Ltd, Aker Operations, Aker Kvaerner, Kvaerner Oil and Gas, Dietsmann Morgan Moore and Press Offshore/AMEC

Long range patrol vessel one of nine for Royal Bahamas Defense Force

The first Damen Stan Patrol 3007 has arrived at Damen Shipyards Gorinchem in the Netherlands for outfitting. The vessel is one of nine that the Royal Bahamas Defense Force has ordered from Damen Shipyards. The order features four Stan Patrol 4207 vessels, one RoRo 5612 and a further three Stan Patrol 3007 vessels.

Damen has designed the Stan Patrol 3007 with the client's requirements in mind. Robin van der Zon, Project Manager at Damen Shipyards Group explains: "These patrol vessels will prevent smuggling and people trafficking, so it's vital they can quickly reach places other vessels cannot. For that reason we have developed the Stan Patrol 3007 to reach up to 24 knots with shallow draught." Even at the highest speeds, Damen's Sea Axe hull design will ensure excellent efficiency and sea keeping.

The vessel design also features a recess in the aft ship to accommodate a rigid inflatable boat (RIB), with high-speed capabilities. "The RIB design is also new," Mr Van der Zon says. "It features a water jet, a new engine system and a propulsion arrangement designed for optimal performance and reliability. She will be able to make speeds over 30 knots."

Damen has designed the Stan Patrol 3007 to remain at sea for up to one week at a time. To meet that requirement, they have provided on board accommodation for a crew of 13, as well as a pantry and mess room. "Over a period of approximately 15 weeks, we will install on board all machinery, electrical installations, HVAC, navigational equipment, insulation and carpentry," states Mr Van der Zon.

"After launching, sea trials and extensive testing will follow a commissioning period of approximately 5 weeks and the first Stan Patrol 3007 should be delivered in week 26 of 2015. After delivery, the crew of the vessel will undergo training in the Netherlands, before the vessel is shipped to the Bahamas," says Mr Van der Zon.

Deep Down, Inc. (OTCQX: DPDW) ("Deep Down"), an oilfield services company specializing in complex deepwater and ultra-deepwater oil production distribution system support services announced it has received a large order for flying leads and ancillary equipment directly from one of the supermajor operators. The flying leads will be delivered and deployed in the Gulf of Mexico by the first quarter of 2016.

Ron Smith, Chief Executive Officer of Deep Down, Inc. stated, "We are pleased to receive this award on such a critical project and will continue to provide the best quality and service to our customers."

JDR is pleased to announce the appointment of David Currie as Chief Executive Officer and a member of the Board of Directors, effective 12 January 2015.

David is an accomplished industry leader with nearly 30 years' experience in the global offshore energy industry, most recently the UK Regional President for Aker Solutions. Previously to that he spent the bulk of his career at FMC Technologies where he held a range of senior positions, the last of which was Director of Global Subsea Operations.
JDR's Executive Chairman, Pat Herbert, said: "I am delighted to welcome David to JDR. He brings a vast wealth of experience in the global subsea industry. His commercial knowledge of JDR's key markets will be a valuable asset to the company as we develop our products and services for offshore oil, gas and renewables markets."

David will focus on developing JDR's commercial opportunities, creating new opportunities for the company's industry-leading products and services; from subsea production umbilicals, IWOCS and power cables to aftermarket and installation services. David will be based in the UK, travelling frequently between JDR's key oil and gas markets around the world.
David Currie commented: "It's an exciting time to be joining JDR. With our continuing focus on technology and customer success, we are well positioned to support our partners in the challenges our markets face both today and in the long term."

Statoil and its partners have decided to develop the Rutil discovery located in the Gullfaks Rimfaks valley in the North Sea. Providing close to 80 million barrels of oil equivalent, the development will extend the lifetime of the Gullfaks A platform.

The plan for development and operation (PDO) was submitted to the authorities on December 16th.

"We are pleased about the investment decision we have made that will extend the period of profitable production on the Gullfaks A platform. By using existing infrastructure and standardized solutions we are able to create great value for our owners," says Ivar Aasheim, senior vice president for field development on the Norwegian continental shelf (NCS).

"Statoil is currently implementing a major improvement effort to reduce costs and increase profitability to secure longterm activity and value creation on the NCS. The Gullfaks Rimfaks valley is a good example of this work," underlines Aasheim.

Gas and condensate will be transported in existing pipeline for processing in the gas processing facility at Kårstø north of Stavanger. The processed gas is transported to markets on the European continent.

"Production from the Gullfaks Rimfaks valley helps secure jobs and value creation from the Gullfaks field and throughout the whole value chain beyond 2030," says Kjetil Hove, senior vice president for the operations west cluster in Development and Production Norway (DPN).

The investment costs of the Gullfaks Rimfaks valley development are estimated at 4.6 billion 2014 NOK.
The Gullfaks Rimfaks valley development will consist of a standard subsea template with two simple gas production wells, and possibilities of connecting two more wells. The well stream will be connected to the existing pipeline to the Gullfaks A platform.

The Gullfaks Rimfaks valley is one of Statoil's fast track projects, aiming at realising resources quickly and cost-efficiently by for example using existing infrastructure while it is still available.

Production start is scheduled for the first quarter of 2017.

The license partners are Statoil (operator) (51%), Petoro (30%) and OMV (19%).