Damen Marine Components (DMC), the oldest company in Damen Shipyards Group, has celebrated its 150th anniversary . DMC has grown from a very small shipyard established in Gorinchem in 1865, to become the largest nozzle builder in the world.

Via a live satellite link, around a 1,000 customers, employees, suppliers and colleagues, at its three main locations in Hardinxveld (the Netherlands), Jiangyin (China) and Gdańsk (Poland), will toast this historic occasion simultaneously.

Although DMC’s own roots were established in 1865 when Jan van de Giessen set up a business from a small wharf in the ‘Kalkhaven’, the history of shipbuilding in the area actually dates back to the 14th century. DMC itself was officially founded 10 years ago, when two Damen Group members were merged - Van de Giessen and Gdansk Engineering Works. GEW was actually the first company Damen Shipyards ever acquired outside of the Netherlands.

Looking back over the years, DMC Managing Director, Steef Staal told the audience how, above all, he believes DMC’s success is because it ‘has become a partner to its clients, rather than just a supplier’. “We help our clients and work together with them.”

Just in the last decade alone, DMC has nearly tripled its turnover to €36m and this has been possible due to Damen Shipyards’ willingness to invest in cutting-edge equipment and innovative production processes.

DMC has three large spinning machines, which are able to manufacture nozzles up 7.5 m in diameter. “Perhaps there is another builder out there able to make these spectacular nozzles but I am not aware of it!” He adds that it is not just about the spinning machines alone but crucially, the novel manufacturing technique deployed, which means that nozzles are made with only a single weld on the inner side.

As well as the vast range of top quality nozzles and rudders, DMC also manufactures shipbuilding constructions such as tailor-made stern sections for thrusters, crane foundations and crane arms.

Following on from the celebrations surrounding the 150th anniversary, DMC is also set to celebrate again, as it opens a second major production site in China in Jiangyin on November 27.

Damen has built this new production plant from scratch. At 11,000 sq m, the facility is nearly double its existing site at Suzhou. The facility will have its own spinning machine and state-of-the-art equipment including grinding and sanding robots and will see employee numbers grow to 120. The facility services Asia and the Middle East and US west coast.

“And as an employer in China, I would also like to stress that nearly all of our people have been with us from the early days. Damen takes care of our employees so we don’t see the rapid turnover of staff other companies do.”

Aart Vogelaar, General manager, Damen Marine Components Jiangyin Co., Ltd, comments: “At Suzhou we could not expand anymore so we decided to seek out another production plant. Jiangyin gives us expansion possibilities and it is also very close to our major customers, which have facilities in this area. This makes it very cost effective as we can deliver right on their doorstep.

“The new site will of course, be the usual Damen high quality and have quick delivery times. The new facility also allows us to broaden our offering with other products such as winches and thruster tunnels.

“Just as we did 10 years ago, Damen has again invested millions in China. This is not the easiest time here and I think this move shows the courage of Damen and how it takes the long-term view.”

Over the next few years, the Gdańsk site is also set to see a further 4,000 sq m added. In October, another, larger spinning machine is set to be operational. DMC Gdańsk already has a spinning machine able to manufacture nozzles of a diameter of 4.3 m, but the new one can handle nozzles up to 7.5 m. “Based on numerical data, we can programme any shape or profile required. Clients have found that such quality nozzles are not possible through traditional building methods. This is unique technology and I think it is reflective of Damen - the best ideas to get the quality required and the best technical solution.”

Steef concludes: “Jiangyin and the new, larger spinning machine in Gdańsk are just some of the latest investments of Damen, but DMC is continuously developing new equipment and fine-tuning its production methods. We continually aim to lower the number of labour hours and make processes as efficient as possible. We are making sure we are ready for the future.

“In the meantime on this very special occasion, I would like to thank all our customers, suppliers, partners and all our other relations for their cooperation, loyalty, faith and adherence during all these years. Without the fantastic colleagues in Jiangyin and Suzhou, Gdansk and Elblag and of course, Hardinxveld and Gorinchem, life would be dull and DMC unknown to you all. They are the spirit of our company. Together with our customers and suppliers we form one big Damen family!”

Expanding global inspection, repair, maintenance (IRM) and light construction company Harkand has united its African presence under the leadership of Doug Fieldgate as Africa General Manager.

Doug has 23 years of experience in the African Oil and Gas market primarily focused on West Africa – he will be based in the North America and Africa operations headquarters in Houston and will lead the company’s continued expansion into the region working closely with its consortium partners.

The assignment of a general manager for Africa follows Harkand’s successes in the region including the recent contract award by Technip in Ghana providing survey services and the one year contract for a major oil and gas operator to deliver ROV, project management, engineering and technical support services in Nigeria.

The company is focused on continuing its growth in Africa to incorporate the complete Harkand solution for the clients in the region including diving, ROV, survey and inspection services as well as project management and engineering activities.

In order to achieve this rapid expansion whilst maintaining focus on delivery and safety, Doug will draw on his considerable in-region experience to create a cohesive offering for operators throughout the African oil and gas sector, building on the vast experience and knowledge base derived from Harkand’s existing centers of excellence in the Gulf of Mexico and the North Sea.

Harkand is committed to maintaining a robust local content position focused on skills transfer and training in any location it establishes a presence in Africa and is working closely with local, established organizations to ensure this goal is obtained. The company is dedicated to sharing knowledge, nurturing technology transference and indigenization of the workforce in any location it establishes a presence in Africa – this will support the region’s ability to grow independently and add value to the gross domestic product (GDP) and social enrichment.

Chief executive officer John Reed said: “Our strategic expansion into Africa will strengthen our ability to respond to the needs of our clients. Doug’s in-depth knowledge of the region and our successful collaboration with our local partners will ensure we achieve this goal in the various countries with a coordinated resilience.”

Mathieu Guillemin, non-executive director of Harkand and managing director at Oaktree Capital Management, added: “The expansion into Africa is another success in our overall strategy and we look forward to the continued progress. Financial strength is key for continuing to pursue the strategy and Oaktree stays committed to Harkand during the downturn in this cyclical market.”

Harkand provides offshore vessels, ROVs, diving, survey services, project management and engineering to the oil and gas and renewables industries. Headquartered in London with continually expanding operations bases in Aberdeen, Houston, Mexico, Nigeria, and Ghana, Harkand aims to be the leading subsea IRM and light construction contractor globally.

Last week was 20 years since the start of oil production from the Troll field. The 20 year-old can look back on enormous wealth, with 1.56 billion barrels produced so far and NOK 460 billion in income.

Troll oil is the impossible made possible. Only a few believed in extracting the thin oil zone at Troll, and through a burning desire to make it happen, determination and innovation, Troll oil became reality,” says Øivind Dahl-Stamnes, head of Troll production.

Determination and innovation in reservoir technology, drilling, well and seabed technology and professional and systematic operations have taken Troll Oil to where it is today: Norway's biggest oil producer the last three years.

“Troll oil is a story that summarizes the best our operations and the opportunities on the Norwegian continental shelf,” Dahl-Stamnes continues.

A well technology puzzle

The Troll oil and gas adventure started with the awarding of the fourth licensing round in 1979. On 17 July 1979, Borgny Dolphin started exploration drilling, and four months later Troll was a fact.

A thin oil-bearing layer stretches across the entire field, but is only viable in two provinces in Troll west. The oil is produced using 15 seabed frames with a total of 121 well slots linked to the floating production platforms Troll B and Troll C.

The greatest challenge when planning the field was to develop technology to extract the thin oil zones without the wells producing too much gas. Technology was challenged and resolved, and in many ways Troll has been groundbreaking in drilling and well technology.

All of the production wells at Troll oil are horizontal wells. This means drilling in two stages, initially down to the reservoir which is 1,600 meters below the seabed, and then up to 5,500 meters horizontally into the reservoir. Most of the wells are so-called branch wells, which mean that they have two or three horizontal sections that are gathered at a crossroad in the reservoir.

Huge wealth


To date 200 wells have been drilled around Troll B and C, which combined have produced 1.56 billion barrels of oil. Troll oil has been Norway's largest oil producer for the past three years. We still have great ambitions for production, and are stretching for 2.1 billion barrel mark in the field's lifetime. The current recovery rate for oil is 40%, with a goal to reach 52%. The Troll oil adventure alone has generated an estimated NOK 460 billion in income, with investments so far of around NOK 100 billion.

The oil is transported to Mongstad, from Troll B through the Troll Oil Pipeline I (completed 1995; 16" diameter, 85 km length, transport capacity 42,500 m3/day), and from Troll C through the Troll Pipeline II (completed 1999; 20" diameter, 80 km length, transport capacity 40,000 m3/day). Associated gas goes to Troll A.

A recent survey conducted by Trelleborg’s offshore operation paints a positive industry outlook with decision makers taking a long term value-add view. Original equipment manufacturers (OEMs) rated product quality, responsiveness and skills above cost as the most important supplier attributes. In fact, only 4% cited cost as a primary driver in determining preferred partners. However, there is a missing value link, as in practice cost savings appear to be taking priority.

While suppliers with more substance may be winning-out at the tender stage, when it comes to implementation the temptation to try and make short term cost savings is clear. 78% of OEMs, operators, contractors and consultants admitted to changing the specification of a project for budgetary reasons.

Thor Hegg Eriksen, President of Trellebog’s offshore operation, says: The overall effect of reduced oil prices is applying pressure across the supply chain and that’s evidenced by the research findings. While the market buys into choosing a value-add partner over a purely transactional arrangement, it doesn’t appear to be maximizing the third party expertise we know can make the difference.

Our survey points toward an offshore industry that believes it is putting long term strategies first, when the research shows short term decisions with cost front of mind. The market also seems to under-prioritize some of the most important value-add attributes that it should be seeking from a provider that can compete on more than just price.

Innovation, for example, should be high on the agenda but it appears the link between new thinking, products and solutions and a healthier bottom line is missing.

Indeed, only 3% of respondents identified creative approach to the brief as a sought after supplier competency. This could lead to truly innovative suppliers being overlooked and potential overall cost savings being unexploited.”

Trelleborg’s offshore operation surveyed a global audience sample of original equipment manufacturers, operators, contractors and consultants, to identify ways in which the industry can respond to pressure against a backdrop of slowed market growth. Trelleborg studied the responses for its brand new Next Level Report to comprehend what is affecting corporations and how this pressure can be overcome.

You can download the Next Level Report here.

Aqueos Corporation, a premier subsea service provider for the offshore oil and gas sectors of the Gulf of Mexico and the Pacific West Coast, receives a prestigious safety award from a major Offshore Oil & Gas operator.

This distinguished award was presented to Aqueos President and CEO, Ted Roche, during a recent Safety forum and recognizes Aqueos Corporation for “Safety Excellence” for working over 505,592 hours without a recordable injury. “This is evidence of the hard work and commitment of our offshore personnel, a supportive and talented project management and administrative staff, and steadfast senior management all working as a focused team,” comments Ted Roche.

Roche further commented, “We attribute a large part of our success to continuous improvement, communication, and remaining focused on our core value of safety. Even in these difficult market conditions, the team at Aqueos looks forward to continued managed growth without sacrificing our core values.”

Aqueos Corporation, with offices in Broussard, LA and Ventura, CA, provides marine construction and specialty subsea services, including a complete range of commercial diving, remotely operated vehicles (ROV’s) and vessel-related services primarily to the offshore oil and gas markets.

Shell has provided an update on the Burger J exploration well, located in Alaska’s Chukchi Sea. The Burger J well is approximately 150 miles from Barrow, Alaska, in about 150 feet of water. Shell safely drilled the well to a total depth of 6800 feet this summer in a basin that demonstrates many of the key attributes of a major petroleum basin. For an area equivalent to half the size of the Gulf of Mexico, this basin remains substantially under-explored.

Get background colour from dictionary with a fallback to default value. Shell has found indications of oil and gas in the Burger J well, but these are not sufficient to warrant further exploration in the Burger prospect. The well will be sealed and abandoned in accordance with U.S. regulations.

"The Shell Alaska team has operated safely and exceptionally well in every aspect of this year's exploration program," said Marvin Odum, Director, Shell Upstream Americas. "Shell continues to see important exploration potential in the basin, and the area is likely to ultimately be of strategic importance to Alaska and the US. However, this is a clearly disappointing exploration outcome for this part of the basin.”

Shell will now cease further exploration activity in offshore Alaska for the foreseeable future. This decision reflects both the Burger J well result, the high costs associated with the project, and the challenging and unpredictable federal regulatory environment in offshore Alaska.

The company expects to take financial charges as a result of this announcement. The balance sheet carrying value of Shell's Alaska position is approximately $3.0 billion, with approximately a further $1.1 billion of future contractual commitments. An update will be provided with the third quarter 2015 results.

Shell holds a 100% working interest in 275 Outer Continental Shelf blocks in the Chukchi Sea.

Operations will continue to safely de-mobilize people and equipment from the Chukchi Sea.

InterMoor UK Operations, part of Acteon’s foundations and moorings business, has surpassed eight years and more than 2,520 projects without a single lost-time incident (LTI).

The safety record is held by InterMoor UK Operations – InterMoor Ltd, InterMoor Marine Services Ltd and ChainCo. Company operations span three bases, five storage yards and numerous quayside locations in the UK and globally.

Alan Duncan, managing director, InterMoor UK Operations, said, “Providing safe working environments and high-quality training for employees are vital for InterMoor. This milestone highlights the extent of our commitment to safety and the professionalism of our staff. It was achieved with the participation of the entire workforce, from quayside support personnel to senior management.”

In 2015, InterMoor UK Operations opened a new base in Aberdeen harbor and continued its focus on safety. The new equipment at the facility was assembled with a focus on safe, effective and efficient operations.

Bruce Strachan, quality assurance and health, safety and environment manager, InterMoor UK Operations, said, “Eight years without an LTI places InterMoor UK at the forefront of worldwide safety performance. Very few businesses of a comparable size have conducted operations for this length of time without recorded incidents. Of course, the aim is to continue the trend. Our target is, and will always be, zero accidents or incidents.

“InterMoor’s main focus is on nurturing our culture of safety. We do this by encouraging employees to get involved and contribute positively through developing hazard awareness and personal accountability.”

NYC-based PIRA Energy Group reports that improved sentiment is important to support demand for crude inventory and price, especially with the global stock surplus expanding in 4Q15. U.S. total commercial crude stocks drew the week ending September 18th, lowering stocks from prior week’s record. Specifically, PIRA’s analysis of the oil market fundamentals has revealed the following:

Global Stock Surplus Increases and the Problem for Oil Prices

Improved sentiment is important to support demand for inventory and price, especially with the global stock surplus expanding in 4Q15. Supply/demand revisions also reduce 2016’s anticipated stock decline, but it still remains substantial and important to driving prices higher. Nevertheless, higher inventories lead to roughly 3-4% mark down in 2016 crude oil prices. Rig count declines must translate into inventory declines for prices to move higher on a sustainable basis. The problem for prices is production growth still remains strong, benefitting from local currency declines and legacy projects. Refinery margins will continue to benefit from demand growth outpacing refinery capacity (ex-China) and crude price contango.

Gas Flash Weekly

The prior Gas Flash Weekly published on September 17th indicated a string of triple-digit builds were on the horizon and the latest report confirmed how imminent those hefty builds were. Aside from the 106 BCF figure, preliminary balances suggest builds in the 100+ vicinity for at least the next two weeks. PIRA’s projected end-September carryout is now ~3.63 TCF and easily puts the market back on course for a new record end-October carry in excess of the 3.93 TCF set in 2012.

French Nuclear Availability to Keep Prices Strong in the Shorter-Term

French nuclear availability is a concern in the shorter-term and will keep French prices strong, but EDF's incentive to run the fleet harder is unchanged, considering Belgium's nuclear output remains down year-on-year for the time being. Availability of French oil and gas units is now more certain and bearish for French winter prices, especially given the weakness in the oil and gas balances.

Busy Week with Chinese PMI, U.S. / Europe Momentum Indicators, and Yellen Speech

As expected, latest indicators from the emerging Asia region (such as China’s purchasing managers’ index) turned weaker. Momentum indicators from the U.S. and the euro area, in contrast, were constructive, suggesting that the regions are largely insulated from difficulties in emerging markets. Policymakers from the U.S. and Europe are concerned about potential negative spillovers from emerging economies. An apparent message from Fed chair Yellen’s speech this week was that the Fed would not wait too long before making up its mind about monetary tightening – but the speech also contained dovish elements.

U.S. Commercial Crude Stocks Draw for the First Time Since End-July, Narrowing Surplus

U.S. total commercial crude stocks drew the week ending September 18th, lowering stocks from prior week’s record. This is the first weekly draw in total commercial stocks since July 31. U.S. total commercial stocks built this week last year, narrowing the year-on-year excess. Total reported petroleum demand spiked back up for the week following the period containing the Labor Day holiday. The latest four-week average of export-adjusted total petroleum demand, however, is up only 140 MB/D, or 0.7%.

Pakistan to Look to Offer Subsidized LNG for Fertilizer Industry

The Pakistan government is mulling over providing a subsidy on imported LNG supply to fertilizer plants that have been shut because of dearth of domestically produced natural gas – a significant move that will make urea available to farmers at affordable prices. Four fertilizer plants connected to the pipeline network of state-owned Sui Northern Gas Pipelines Limited (SNGPL) have been encountering gas supply problems because of shortage since the days of previous Pakistan People’s Party government.

European LPG Prices Push Higher W/W

Propane prices in Europe rose 6.1% the week ending September 25th, as seasonal demand increases and markets look tighter in October. Prices will have to continue to increase to attract additional volumes from the U.S. as current spot arbitrage economics remain challenged. Butane prices creeped higher, after larger increases in the prior week.

U.S. Ethanol Prices and Margins Higher W/W

U.S. ethanol prices rose the week ending September 18 as inventories drew to the lowest level of the year the prior week. Ethanol manufacturing margins were slightly lower, as co-product DDG values fell sharply.

U.S. Coal Stockpile Estimates

U.S. power sector coal stocks commenced a seasonal build this month despite warmer than normal weather conditions across the central U.S. on through the Northeast. PIRA estimates U.S. electric power sector coal stocks will reach 165 MMst as of the end of this month, or 86 days of forward demand based on our forecast of Oct/Nov average coal burn (vs. 60 days one year ago).

Low Natural Gas Stock Levels in Europe

Low natural gas stock levels in Europe validate both a comfort with the supply outlook and a lack of concern over peak demand this winter. A conscious decision has been made to rely on incremental imports to balance during peak winter gas demand with the decision tied to broader financial constraints as well as comfort with alternate fuels and forms of power generation available.

S&P 500 & Commodity Prices Fall W/W

The S&P 500 declined the week ending September 25th. Volatility was little changed, but high yield credit (HYG) and emerging market credit fell back. Overall, commodities declined for the third straight week. With regard to currencies, many of the emerging Asia currencies weakened again, particularly the Indonesian rupiah, while the Brazilian real also posted a noticeable decline. Bond yields on longer term Japanese debt continued their easing trend, while U.S. and Euro longer-term yields also eased on the week. Greek bond yields also continue to decline.

China’s 2017 Emissions Trading Scheme Spooks CY18 FOB Newcastle Prices Lower

International coal prices continued to move lower last week, with flat oil prices and a lack of fundamental support allowing for further reductions across the forward curve. Losses for CY18 FOB Newcastle (Australia) prices were most pronounced, likely as a result of China announcing a nationwide emissions trading scheme starting in 2017. Without a rebound in Chinese import demand, the market will remain over supplied, as there isn’t enough seaborne demand to offset continued losses in Chinese import s. With India’s imports exhibiting softness as well, PIRA continues to believe that the risks remain to the downside, although a recovery in oil prices would provide some upside to pricing.

Supply Length Drags Down Price; Will Demand Respond?

Balancing the LNG market is becoming a tougher and tougher proposition in the short term and if the new government-issued METI numbers for Japanese LNG imports by 2030 are anywhere near accurate, a perpetually soft market is not out of the question.

Global Equities Decline W/W

Global equity markets largely declined the week ending September 25th. U.S. equities out performed global equity averages, but still fell. The best performing equity sectors in the U.S. were banking, utilities, and consumer staples, which all posted gains for the week. The weakest performer was materials. Internationally, Japan equities moved higher, while Latin America was the worst performer, dragged down by big drops for Brazil and Argentina.

Dry Bulk Freight Market Forecast

There was a bounce back in Cape market sentiment the week ending September 18 with freight rates increasing sharply as evidence arose of increased iron ore loadings this month in both Brazil and Australia. Iron ore stock levels at Chinese iron ore ports also increased recently however, and with more iron ore afloat this month bound for China, there may be some downward pressure on iron ore prices. With little sign of a recovery in Chinese domestic steel demand and high volumes of Chinese steel exports, PIRA believes current FFA value for Q4 is slightly on the high side.

Stocks Up/Production Down W/W

U.S. ethanol production dropped to a 19-week low 938 MB/D the week ending September 18 as manufacturing margins remained relatively poor, largely due to low gasoline values. Ethanol inventories rebounded after having declined sharply to the lowest level since December 2014.

Brazilian Real Trumps Chinese Buys

13.18 million MT was a stunning number to come out of the Chinese delegation’s ceremonial soybean purchase yesterday in Des Moines, surpassing even the most aggressive estimates, but it was the Brazilian Finance Minister who is really responsible for Friday’s price support.

Soybeans Yields Getting Bigger

PIRA is re-issuing our expected soybean yields this week after inputting the all-important August 15-September 25 weather data in our model over the past few days. PIRA’s current objective yield model showed a similar gain to late August, but still didn’t quite get to the NASS Crop Production number in the September WASDE.

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.

The renaming completes the integration of key UK specialists - Fugro Seacore, Fugro Engineering Services, EM Drilling, Fugro Loadtest, Fugro Instrumentation & Monitoring and Fugro Aperio.

Renamed to reflect the depth and diversity of its offering, Fugro GeoServices Ltd employs close to 600 staff and undertakes seven key activities: nearshore geotechnical, offshore geotechnical, marine installation, onshore ground investigation, cone penetration testing, geophysics and instrumentation and monitoring. The company also has geotechnical laboratories and carries out a range of built environment surveys and testing.

Fugro GeoServices works worldwide undertaking site investigation and marine construction support projects-in challenging conditions.

The restructure is in line with Fugro’s continued integration of its global capabilities ‘without boundaries’ to deliver world class multi-service projects more efficiently in challenging market conditions.

The company works offshore and on land providing engineering and geotechnical services for clients in the energy, infrastructure and mining sectors worldwide. Projects include the Kribi port development (Cameroon), BP’s Azeri oilfield (Azerbaijan) and Flamanville nuclear power plant (France). Significant UK projects include Hinkley Point nuclear power station, Gwynt y Môr and Walney offshore wind farms, HS2, as well as the Garden Bridge, Shard and Thames Tideway projects in London.

Marcus Rampley, MD of Fugro GeoServices, said: “Our group delivers an amazing range of services to many sectors; we drill some of the biggest diameter holes in the ocean floor and test the foundations of the world’s tallest buildings, we inform the designers of offshore wind projects, tunnels and pipelines and we measure, test and monitor existing infrastructure throughout its lifecycle. We are making it easier for clients to contact us and work with us, and believe that restructuring as Fugro GeoServices makes us better able to deliver the complex multi-disciplinary projects that we are respected for.”

DOF Subsea has been awarded several major contracts with a total value in excess NOK 3 billion ($351Million), including options, securing both short term and long term utilization of assets and personnel.

In the North America region DOF Subsea has been successful in securing a major IMR contract with Husky Energy in support of their operations offshore Eastern Canada. The DOF Subsea team based in St. John's will supply IMR services over a period of 10 years firm, with options for an additional 10 years. The work scope includes an IMR vessel and 2 work class ROV systems and personnel. Offshore operations will commence in 4th quarter 2015 by mobilizing 2 work class ROVs on a third party vessel on charter to Husky, followed by delivery of a DOF IRM vessel in 2017. This IMR contract is of strategic importance for DOF Subsea, seeing the Group's presence in the Canadian offshore market being substantially strengthened as well as establishing a solid relationship with Husky Energy.

In addition, the North America region has been awarded a term contract in the Gulf of Mexico. The contract has a firm period of 10 months with option to extend, and the operations will commence in October 2015. One of the Group's subsea vessels will be utilized under the contract. The award is an extension of a current contract held by DOF Subsea North America for a key client in the region.

In the Asia Pacific region, several contract awards over the recent weeks with key clients will secure utilization of the regions vessels. The scope of work includes IMR services, mooring and light construction. With the recent awards, close to full utilization of the regions 4 vessels for the reminder of the year is secured, as well as a good visibility for 2016.

Mons S. Aase stated: "I am very pleased with the Group's ability to secure term work in a challenging market, and especially winning the Husky contract and strengthening the North America subsea region. This award is a team effort, utilizing the expertise within all disciplines in the DOF Group.

The total IMR contract award during 2015 is in excess of NOK 6.5 billion. Securing several strategic long-term IMR contracts will strengthen DOF Subsea's position within the global IMR market over the next years."

As offshore oil exploration and production expands, the need for high speed spill response vessels has increased. G.M. Penman is Rozema Boat Works' newest skimmer boat. The 65' vessel depends on Twin Disc QuickShift® transmissions and EC300 Power Commander® electronic control system with Express for the critical task of remediation. "The G.M. Penman is like a fire truck," said Jason Rozema, Rozema Boat Works operations manager. "It'll run high speed at 26 kts to the incident, but when it arrives at the spill it has to maneuver carefully around piers and other boats. Twin Disc provides complete control at slow speed."

The oil spill recovery vessel (OSRV) is equipped with a pair of Twin Disc QuickShift MGX-6620 RV transmissions. With the EC300 Power Commander electronic propulsion control system, the boat is capable of instantaneous shift response from neutral to full ahead to full reverse. "It has fantastic maneuverability," noted Rozema.

Operating at 1–1.5 kts with its QuickShift transmission, the boat utilizes 1,500' of Kepner ocean boom and dual Lamor three brush skimmers. It has an on board storage capacity of 215 bbl of recovered oil and crude. The vessel is based out of Vancouver, British Columbia, Canada.

The G.M. Penman is the boatbuilder's fifth 65' OSRV. The company also produces a 47' skimmer; all 14 builds have included Twin Disc QuickShift transmissions.

Since 1955, three generations of the Rozema family have built a wide variety of commercial and recreational vessels used throughout North America. The Puget Sound, Washington-based company's website is www.rozemaboatworks.com

Twin Disc is a global manufacturer of engineered commercial and recreational marine propulsion equipment. Its innovative products are in use on countless vessels worldwide.

Oil prices have finally crept up on drilling and production levels in the US. The onshore rig count has continued to soften as many operators, particularly some large independents, have chosen to wait for improved economics to continue operations. In other cases, smaller companies such as Sampson and Quicksilver Resources, have filed for bankruptcy protection amid economic stress – and more are likely coming with bank borrowing base assessments in October.

Slowing operations have led to a half a million bpd decrease in US production since April. While oil prices are very difficult to predict in the short-term and many do not expect a rapid price recovery, added confidence in the global oil supply/demand balance could help push some larger scale projects forward.

Large-scale developments with proprietary designs do not have the optionality of shale developments. Many long-lead offshore and oil sands projects have already been sanctioned and some have much of the major capital costs sunk – making full project break-even figures much less relevant than shale investments with steep production curves. In this case, long-term high-capital cost developments are likely to be pushed forward as they can be 30-year producing prospects and are not easily scalable to the short term environment.

So what does this mean for unsanctioned projects? Numerous IOCs are waiting to see if the U.S. production decline is signaling a bottoming out of the oil price slide. Then begins a process of reevaluation of their own asset portfolio in the new price and development cost environment. Schlumberger’s acquisition of Cameron displayed their observed importance of reducing costs for their customers through supply chain efficiencies. Future commitments to new developments will be driven not just by the oil price but also through the ability of the supply chain to deliver cost efficiencies.

Dynamic Industries, Inc., a leading fabrication and service provider to the global Oil, Gas and Energy industries, announced that its specialty craft division, Dynamic Construction Services (DCS), has been awarded a key contract to provide fabrication, topsides installation and hookup services for a deepwater subsea tie-back in the Gulf of Mexico. Dynamic’s Harvey facility will be responsible for the fabrication scope as well as mobilization and management of offshore crews.

Matt Oubre, President of DCS said, “Dynamic is very excited about being awarded this high visibility project. We are confident that the focus on our Core Values – Safety, Quality, and Productivity – will allow us to successfully complete this project and pave the way for similar projects in the near future.”

West Africa, Mexico, Caribbean, South America and the Middle East.

Technip USA, Inc., an affiliate of Technip SA of France, and Samsung Heavy Industries (SHI), Ltd. have entered into an agreement to develop a joint design of a low motion semi- submersible production platform. The purpose is to establish a design and delivery model that leverages Technip’s proven engineering expertise as well as SHI’s extensive experience in semi-submersible FPS[1] construction. It also aims at defining a global configuration in full compliance with clients’ specific project design basis. SHI will complete the detail design and fabrication package in alignment with its own yard’s efficiencies.

The hull form to be developed is based on Technip’s patented Heave and VIM Suppressed(2) (HVS) semi-submersible. It has best-in-class overall motion performance for the vital support of both top tension and steel catenary risers. SHI has fabricated several world-class production semi-submersibles including Jack St. Malo for the US Gulf of Mexico and Ichthys for offshore Australia.

The resulting joint design effort will lead to compressed design and delivery of world-class production systems, a feature very much in tune with operators’ demands today for shorter schedules. The relationship also covers joint design and delivery of topsides for the semi- submersible systems.

Jim O’Sullivan, Chief Technology Officer Offshore, Technip USA, Inc., commented: “While our expertise covers a full range of offshore facilities, we are delighted to jointly develop this semi-submersible design for global FPS markets, in close collaboration with our partner Samsung Heavy Industries, building upon our long-term relationship on various projects such as past FPSO fabrications and the current Prelude FLNG facility.”

Mexico needs to attract significant interest to salvage a bidding round hampered by delays and low oil prices, with Phase 4 of the current Round 1 licensing process offering the country’s first deepwater assets, says research and consulting firm GlobalData.

The company’s latest report* states that a total of 13 exploration blocks will be open for bidding, together with several deepwater discoveries, with the general expectation that the assets will be offered under a royalty/tax contract called a license.

Adrian Lara, GlobalData’s Senior Upstream Analyst, says that evolutionary evidence from shallow-water terms suggests that the Mexican government is likely to change the adjustment mechanism to reduce the maximum additional royalty rather than accepting lower bids.

Lara explains: “To account for higher costs and exploration risks in deepwater areas, the additional royalty will need to be lower than that envisaged onshore.

“While this would ease the overall tax burden for potential investors, the government may still be able to mandate a reasonable minimum additional royalty rate.”

GlobalData’s report also found that exploration and production companies with over 1.6 million barrels of oil equivalent per day of production may no longer be restricted from partnering, and changes to unpopular corporate guarantee rules are also being considered.

Despite these attempts to make the current phase more attractive, Round 2 is expected to be more popular amongst bidders.

Lara adds: “Many companies are happy to wait to invest in Mexico if the Round 1 terms are not right, as a number of blocks in the Perdido area for Round 2 are possibly more attractive than those on offer this time around.

“The more important element of licensing in Round 1 is the farm-out of deepwater discoveries Exploratus, Trión and Maximino in the Fold Belt, which could contribute production within a much shorter time frame. Outside of the farm-outs, the government only risks the political capital it has invested if the terms are deemed unattractive,” the analyst concludes.

*Mexico’s Round 1 to Rebound with Deepwater Bidding

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