2H Offshore, an Acteon company, has invested in improved office facilities in Malaysia and Australia, to support ongoing growth in the Asia Pacific region.

"The subsea oil and gas industry in Asia Pacific continues to grow rapidly," said Hugh Howells, principal director at 2H Offshore. "Expanding our offices in the region will help us to support existing clients and enable us to meet the increasing demand for our specialist, riser and conductor engineering services."

Perth Office

Both offices have improved facilities, additional meeting rooms and enhanced conference facilities and maintain a close proximity to a large number of 2H's major clients, to underpin ongoing progress in the Asia Pacific region.

Hugh Howells, principal director of 2H, commented, "We are very pleased with the growth that 2H has achieved in Perth and Malaysia over the past four and six years respectively, and anticipate further strengthening of our team with additional engineering professionals over the next few years. Our new facilities provide an improved environment for our team and increased capacity that will allow us to take on a greater number of projects for our clients."

The two new office addresses are as follows:

2H Offshore
Suite 31-1
31st Floor
Wisma UOA 2
21 Jalan Pinang
50450 Kuala Lumpur, Malaysia

2H Offshore
Level 8
1008 Hay Street
Perth, 6000, Australia

Hess Corporation (NYSE: HES) announces that production has commenced from the Tubular Bells Field, located in the Mississippi Canyon area of the deepwater Gulf of Mexico. Hess holds a 57.14 percent interest in the Tubular Bells Field and is the operator.

Chevron U.S.A. Inc. has a 42.86 percent interest.

Image courtesy: Hess

Following a ramp-up period, Tubular Bells is expected to deliver gross production of approximately 50,000 barrels of oil equivalent per day (25,000 barrels of oil equivalent per day net to Hess) from three producing wells by year end.

"This important achievement demonstrates our ability to successfully execute highly complex, deepwater development projects," said John Hess, chief executive officer. "We are proud to deliver Tubular Bells safely and on budget. One year after Hess took over as operator, the project was sanctioned and fast tracked with an execution schedule to first oil in just three years."

The Tubular Bells Field was discovered in 2003 and the development was sanctioned in October 2011. It lies in approximately 4,300 feet of water, 135 miles southeast of New Orleans.

Tubular Bells utilizes the first classic spar built in the United States. The design and construction were done entirely in the U.S. creating an estimated 7,000 direct and indirect jobs in Texas and Louisiana.

Hess Corporation is a leading global independent energy company engaged in the exploration and production of crude oil and natural gas.

BMT Group Ltd, the leading international maritime design, engineering and risk management consultancy, has been recognised in the Global Business Excellence Awards 2014.

The judging panel recognised BMT's continued focus on its staff and how effective communication, management and support was recognised as the cornerstones of the organisation's success. BMT's Employee Engagement Index of 80% compares very favourably with the 'good' industry benchmark of 50% and in the most recent staff survey, 84% of respondents were 'satisfied working for their operating company'.

BMT's Young Professionals Summit held in Bristol, November 2014. BMT's Young Professionals Society (YPS) has been developed to bring together young professionals from across all the BMT companies and provide a platform for them to communicate, collaborate and explore new ideas to further their careers within BMT.

The chairman of the judges said: "BMT Group has differentiated itself by offering its 1,400 employees exceptional benefits and staff initiatives. Its Profit Related Pay scheme is outstanding and to date it has paid out £40 million to staff members. It is also one of the few companies to be established as an Employee Benefit Trust, giving staff a stake in the company and a say in their future. The range of other incentives and benefits are second to none. Consequently, BMT has high levels of staff productivity and loyalty. BMT is an exceptional winner and a role model in its sector."

Peter French, Chief Executive of BMT Group comments: "We are extremely proud to receive this accolade. Engagement with all of our staff is something that we take very seriously because without them, we wouldn't be the successful company we are today."

For over 29 years BMT has gone from strength to strength, providing consultancy services to customers in the defence, energy and environment, government, mining, marine risk and insurance, maritime transport and ports and logistics sectors.

Statoil has decided to suspend two new rigs due to overcapacity in the rig portfolio. Transocean Spitsbergen and Songa Trym will be suspended through 2014, a period which might be extended.

The Transocean Spitsbergen (t.v.) and Songa Trym drilling rigs will be suspended through 2014.

The exploration program in the Barents Sea for 2014 is nearing completion. After Transocean Spitsbergen has completed the Saturn well the rig will cut and retrieve a wellhead in the Mercury exploration well. The job is estimated to be finished in mid-November.

Subsequently the rig will be suspended to the end of the year. The suspension is a result of overcapacity in Statoil's rig portfolio, and unsuccessful attempts to mature alternative assignments for the rig.

"The exploration program has been highly efficient. Transocean Spitsbergen drilled the last seven wells 40% faster than the industrial average in the Barents Sea. This allowed two more wells than originally planned to be drilled. We are very pleased with the work performed for us by Transocean. Unfortunately we are now in a situation of overcapacity, at the same time as the industry is facing high costs and lower profitability," says Statoil's chief procurement officer Jon Arnt Jacobsen.

Transocean Spitsbergen is planning a yard stay from 1 January 2015. The rig is under contract to Statoil to the start of 3Q 2015.

Songa Trym will be suspended after the rig has completed plugging a well on the Oseberg field in the North Sea. This job is scheduled to be completed in mid-November.

"Songa Trym has delivered well on efficiency and safety, and we would have liked to use the rig also for the rest of the year. We have tried to find new assignments for the rig, but our attempts to realize the identified options have not been successful. We are now together with our partners maturing identified drilling assignments for both rigs for 2015," says Jacobsen.

After the two rigs are suspended Statoil will have 13 rigs in activity on the Norwegian continental shelf.

Ensco plc (NYSE:ESV) announces that Carey Lowe has been promoted to Executive Vice President reporting directly to CEO and President Carl Trowell. He will be responsible for overseeing investor relations, public relations, employee communications and branding, led by Vice President Sean O'Neill, as well as strategy, headed by Vice President Michael Howe, and human resources, directed by Vice President Maria Silva.

Mr. Lowe was most recently Senior Vice President – Eastern Hemisphere where he led operations for Europe, Africa, Middle East and the Asia Pacific region. He will continue to be based in London. Mr. Lowe joined Ensco in 2008 as Senior Vice President and has led capital projects, engineering, strategic planning, the deepwater fleet, and safety, health and environmental management.

Steve Brady will succeed Mr. Lowe as Senior Vice President – Eastern Hemisphere and relocate to London. Mr. Brady was previously Senior Vice President – Western Hemisphere based in Houston.

Gilles Luca has been appointed Senior Vice President – Western Hemisphere. His prior roles include Vice President – Strategy, Vice President – Brazil and Vice President – Europe and Mediterranean. Mr. Brady and Mr. Luca will continue to report directly to Executive Vice President and Chief Operating Officer Mark Burns.

"Ensco has a deep bench of talented senior managers," said CEO and President Carl Trowell. "These promotions highlight our commitment to career development and will further strengthen our company."

The scale of the climate challenge requires us not only to ask how we can do more, but how we can achieve the most. Climate change doesn't stop at borders – and neither should our solutions," says Statoil CEO Eldar Sætre at the Statoil Autumn Conference.

"We need a global approach that stimulates technology innovation," Sætre continues.

In the 2014 World Energy Outlook the International Energy Agency (IEA) presents "New Policies" as the main scenario. In this scenario global energy demand rises by 37% in the period to 2040.

By 2040, the world's energy supply mix divides into four almost-equal parts: oil, gas, coal and low-carbon sources.

CEO Eldar Sætre (right) and Mishal Husain at the Statoil Autumn Conference 2014. (Photo: Ole Jørgen Bratland)

No matter which direction environmental policies and measures take, an enormous amount of oil and gas investment will still be needed in the years ahead to secure energy supply, according to the IEA.

A full USD 18.5 trillion will be needed in oil and gas investment from 2014-2035 in order to meet the supply needed for the IEA's "450 Scenario", which sets out an energy pathway consistent with the goal of limiting the global increase in temperature to 2°C.

"The challenge is formidable. Even in the IEA's two-degree scenario, the industry must replace four times Saudi Arabia's production of oil and 10 times Norway's production of gas just to fight natural decline," says Sætre.

EU climate targets
The European Union recently announced their target of cutting carbon emissions by 40% by 2030, which is also line with Statoil's recommendations.

"While the agreement is an important step in the right direction, now the job is to make sure that promises turn into policies, and ambitions into actions. If the EU's ambitions are backed by efficient measures, it will underpin the role of gas in the European markets, replacing coal and reducing emissions," Sætre says. Statoil is a strong advocate for a global approach towards a much higher carbon price—and has seen the results in action.
Based on Norway having one of the world's highest prices on carbon emissions, Statoil has the world's most carbon-efficient oil and gas production.

Statoil's commitment and contribution to tackling climate change goes beyond advocacy for a high carbon price and the promotion of gas.

"We are working to make our production more energy efficient. We are contributing as an industry and as a company to cuts in emissions as part of the Norwegian "Klimaforliket". And we're working to achieve more," says Sætre.

Statoil remains focused on developing carbon capture and storage, and carbon capture and use, as part of the longer-term solution.

Statoil and the entire oil industry have since the early 1990s had a commitment on the Norwegian continental shelf not to flare from routine operations.

"Globally we are now also working collaboratively against flaring through the Global Gas Flaring Reduction Partnership," says Sætre. This is a World Bank initiative aiming to eliminate global flaring by 2030.

And at the UN Climate Summit in New York in September, Statoil and partners launched the Climate and Clean Air Coalition Oil and Gas partnership.

This partnership aims to find effective solutions to detect and reduce methane emissions— which account for a significant, but underexposed share of greenhouse gas emissions.

Energy needs in Africa
One of the main focus areas of this year's Autumn Conference and World Energy Outlook report is economic development, sustainability and energy needs in Africa—focusing particularly on the sub-Saharan regions.
While almost 30% of global oil and gas discoveries have taken place in sub-Saharan Africa over the last five years, more than two-thirds of the population still lacks access to electricity.

"Statoil has over the past few years made significant gas discoveries offshore Tanzania and we are excited about the opportunities we see for a natural gas and LNG development. We already experience that expectations to Statoil's contributions are significant. Given that only around 15% of the population have access to the electrical grid, that is not difficult to understand," says Sætre.

The IEA report highlights three actions that—if accompanied by more general governance reforms— can boost the sub-Saharan economy by a further 30% in 2040: an upgraded power sector, deeper regional cooperation, and better management of energy resources and revenues through efficiency and transparency in financing.

"Our strong presence comes with a big responsibility. This is about developing a sound, sustainable and profitable business that gives the government revenues necessary for economic growth and development. It is about contributing to local capacity building, and about contributing to openness and transparency," says Sætre.

Rowan Companies plc ("Rowan" or the "Company") (NYSE: RDC) announces the appointment of Stephen M. Butz (photo) as Executive Vice President, Chief Financial Officer and Treasurer, effective December 1, 2014.

Mr. Butz joins the Company from Hercules Offshore, Inc., where for the past nine years he has served in various corporate development, treasury and finance functions, most recently as Executive Vice President and Chief Financial Officer. Mr. Butz also has more than 10 years' experience in commercial and investment banking.

Tom Burke, President and Chief Executive Officer, commented, "I am so pleased that Stephen will be joining Rowan. I believe his keen industry knowledge and vast experience will be instrumental as we complete our drillship newbuild program and consider our future capital allocation options. I am confident Stephen will quickly become a valued member of the Rowan team."

Mr. Butz will take over from Kevin Bartol, whose resignation was previously announced and is effective as of November 30, 2014.

Rowan Companies plc is a global provider of contract drilling services in the ultra-deepwater and shallow water jack-up market with a fleet of 34 offshore drilling units, including four ultra-deepwater drillships, two of which are currently under construction, and 30 jack-up rigs, 19 of which are rated high-specification.

L-3 SAM Electronics announces that it has been awarded a significant contract to provide the complete electrical package, including cable engineering and installation, energy distribution, propulsion, lighting and infotainment systems, as well as internal and external communications systems, for two offshore supply vessels for the Norwegian shipowner, Siem Offshore. Built by Flensburger Schiffbau-Gesellschaft (FSG), located in northern Germany, the 155-meter-long and 31-meter-wide ships are due to be delivered in February and July 2016.

The vessels comply with the MODU Code as well as the Ship-Shaped Well Intervention 2 classification and are already planned to be chartered by Helix Energy Solutions, a worldwide leading service company in the offshore market, servicing Brazilian offshore platforms and drilling sites.

"We are extremely proud to work with FSG and Siem Offshore on the two new state-of-the-art offshore supply vessels," said Ulrich Weinreuter, president of L-3 Marine Systems International. "Following the successful recent completion of several comparable vessel installation projects, this award affords us yet another opportunity to demonstrate our range of specialized systems and expertise in supporting the global offshore shipping and platform industry."

L-3's propulsion solution offers four asynchronous motors for main propulsion, five tunnel thruster drives and two retractable thruster drives, each driven by an asynchronous motor and speed-controlled, low-voltage PWM converter, providing a combined total of roughly 30 MW of propulsion power. For power generation of the four high-voltage 6,6 kV switchboards, eight diesel alternators and motors will be installed. Power distribution will then be completed by 10 L-3 transformers for onboard low-voltage mains supply.

L-3 SAM Electronics will also deliver a specially designed multifunction IT network that is the basis for the VoIP telephones and base stations used for DECT telephony, IP TV distribution and the IP CCTV camera system. The assembly includes a high-precision clock facility with NTP server functionality.

The communications systems for offshore and nautical requirements will be supported by L-3's two talk-back systems, the sound-powered telephones and the digital UHF communications systems, as well as a comprehensive range of GMDSS equipment. In accordance with class requirements, a public address and general alarm system will be included, as well as a fire and gas detection system for safety. Another scope of L-3 Sam Electronics' supply comprises the complete lighting system.

The contract is the latest in a series of major turnkey projects undertaken by L-3 SAM Electronics on behalf of leading operators in the offshore market. Other recent ventures include outfitting of the heavy-lift jack-up crane vessels, Innovation and Vidar, and Ceona Amazon, a pipelay and construction vessel.

Baker Hughes Stockholders to Receive 1.12 Halliburton Shares Plus $19.00 in Cash for Each Share They Own
Transaction Values Baker Hughes at $78.62 per Share as of November 12, 2014

Highly Complementary Product Lines, Global Presence and Cutting-Edge Technologies Will enable Combined Company to Create Added Value for Customers

Accretive to Halliburton Cash Flow by the End of Year One, with Nearly $2 Billion in Synergies and Significant Cash Flow to Support Future Returns of Capital to Stockholders

HOUSTON – November 17, 2014 - Halliburton Company (NYSE: HAL) and Baker Hughes Incorporated (NYSE: BHI) have announced a definitive agreement under which Halliburton will acquire all the outstanding shares of Baker Hughes in a stock and cash transaction. The transaction is valued at $78.62 per Baker Hughes share, representing an equity value of $34.6 billion and enterprise value of $38.0 billion, based on Halliburton's closing price on November 12, 2014, the day prior to public confirmation by Baker Hughes that it was in talks with Halliburton regarding a transaction. Upon the completion of the transaction, Baker Hughes stockholders will own approximately 36 percent of the combined company. The agreement has been unanimously approved by both companies' Boards of Directors.

The transaction combines two highly complementary suites of products and services into a comprehensive offering to oil and natural gas customers. On a pro-forma basis the combined company had 2013 revenues of $51.8 billion, more than 136,000 employees and operations in more than 80 countries around the world.

"We are pleased to announce this combination with Baker Hughes, which will create a bellwether global oilfield services company and offer compelling benefits for the stockholders, customers and other stakeholders of Baker Hughes and Halliburton," said Dave Lesar, Chairman and Chief Executive Officer of Halliburton. "The transaction will combine the companies' product and service capabilities to deliver an unsurpassed depth and breadth of solutions to our customers, creating a Houston-based global oilfield services champion, manufacturing and exporting technologies, and creating jobs and serving customers around the globe."

Lesar continued, "The stockholders of Baker Hughes will immediately receive a substantial premium and have the opportunity to participate in the significant upside potential of the combined company. Our stockholders know our management team and know we live up to our commitments. We know how to create value, how to execute, and how to integrate in order to make this combination successful. We expect the combination to yield annual cost synergies of nearly $2 billion. As such, we expect that the acquisition will be accretive to Halliburton's cash flow by the end of the first year after closing and to earnings per share by the end of the second year. We anticipate that the combined company will also generate significant free cash flow, allowing for the return of substantial capital to stockholders."

Martin Craighead, Chairman and Chief Executive Officer of Baker Hughes said, "This brings our stockholders a significant premium and the opportunity to own a meaningful share in a larger, more competitive global company. By combining two great companies that have delivered cutting-edge solutions to customers in the worldwide oil and gas industry for more than a century, we will create a new world of opportunities to advance the development of technologies for our customers. We envision a combined company capable of achieving opportunities that neither company would have realized as well – or as quickly – on its own, all while creating exciting new opportunities for employees."

Lesar concluded, "We believe that the expertise of both companies' employees and leaders will be a competitive advantage for the combined company. Together with the people of Baker Hughes, we will establish a team to develop a detailed and thoughtful integration plan to make the post-closing transition as seamless, efficient and productive as possible. We look forward to welcoming the talented employees of Baker Hughes and are pleased they will be joining the Halliburton team."

Transaction Terms and Approvals
Under the terms of the agreement, stockholders of Baker Hughes will receive, for each Baker Hughes share, a fixed exchange ratio of 1.12 Halliburton shares plus $19.00 in cash. The value of the merger consideration as of November 12, 2014 represents 8.1 times current consensus 2014 EBITDA estimates and 7.2 times current consensus 2015 EBITDA estimates. The transaction value represents a premium of 40.8 percent to the stock price of Baker Hughes on October 10, 2014, the day prior to Halliburton's initial offer to Baker Hughes. And over longer time periods, based on the consideration, this represents a one year, three year and five year premium of 36.3 percent, 34.5 percent, and 25.9 percent, respectively.

Halliburton intends to finance the cash portion of the acquisition through a combination of cash on hand and fully committed debt financing.

The transaction is subject to approvals from each company's stockholders, regulatory approvals and customary closing conditions. Halliburton's and Baker Hughes' internationally recognized advisors have evaluated the likely actions needed to obtain regulatory approval, and Halliburton and Baker Hughes are committed to completing this combination. Halliburton has agreed to divest businesses that generate up to $7.5 billion in revenues, if required by regulators, although Halliburton believes that the divestitures required will be significantly less. Halliburton has agreed to pay a fee of $3.5 billion if the transaction terminates due to a failure to obtain required antitrust approvals. Halliburton is confident that a combination is achievable from a regulatory standpoint.

The transaction is expected to close in the second half of 2015.

Compelling Strategic and Financial Benefits
• • Leverages complementary strengths to create a company with an unsurpassed breadth and depth of products and services. The companies are highly complementary from the standpoint of product lines, global presence and cutting-edge technology in the worldwide oil and natural gas industry. The resulting company will provide a comprehensive suite of products and services to customers in virtually every oil and natural gas producing market in the world. This strategic combination will create an oilfield services supplier with the ability to serve customers through strong positions in key business lines, a fully integrated product and services platform, increased capabilities in the unconventional, deepwater and mature asset sectors, substantial and improved growth opportunities and continued high returns on capital.

• • Generates significant opportunities for synergies. In addition to the compelling and immediate premium Baker Hughes stockholders will receive, the transaction will also yield significant synergies. The combination will provide substantial efficiencies of scale and geographic scope, particularly in the Eastern Hemisphere, which will enhance fixed cost absorption. Once fully integrated, Halliburton expects the combination will yield annual cost synergies of nearly $2 billion. These synergies are expected to come primarily from operational improvements, especially North American margin improvement, personnel reorganization, real estate, corporate costs, R&D optimization and other administrative and organizational efficiencies.

• • Enables increased cash returns to stockholders. Halliburton expects the transaction to be accretive to cash flow by the end of the first year after closing and to earnings per share by the end of the second year. Halliburton expects that the combined company will maintain a strong investment grade credit profile and substantial financial flexibility. In addition, the combined company will generate significant free cash flow, allowing the return of cash to the combined investor base through dividends, share repurchases and similar actions.

Headquarters, Management and Board of Directors
The combined company will maintain the Halliburton name and continue to be traded on the New York Stock Exchange under the ticker symbol "HAL." The company will be headquartered in Houston, Texas,

Dave Lesar will continue as Chairman and Chief Executive Officer of the combined company. Following the completion of the transaction, the combined company's Board of Directors is expected to expand to 15 members, three of whom will come from the Board of Baker Hughes.

Concurrently with the execution of the merger agreement, Halliburton withdrew its slate of directors nominated for the Board of Directors of Baker Hughes.

Advisors
Credit Suisse is serving as lead financial advisor and BofA Merrill Lynch is also serving as financial advisor to Halliburton. Baker Botts L.L.P. and Wachtell, Lipton, Rosen & Katz are serving as Halliburton's legal counsel. BofA Merrill Lynch, as lead arranger, and Credit Suisse are providing fully committed debt financing in support of the cash portion of the consideration.
Goldman, Sachs & Co. is serving as financial advisor to Baker Hughes. Davis Polk & Wardwell LLP and Wilmer Cutler Pickering Hale and Dorr LLP are serving as Baker Hughes' legal counsel on this transaction.

NYC-based PIRA Energy Group Reports that U.S. total commercial oil stocks drew the week ending November 7, slightly widening the commercial stock surplus. On the week, Japanese crude runs rose and crude imports declined, causing crude stocks to draw. Specifically, PIRA's analysis of the oil market fundamentals has revealed the following:

Stock Excess Expands Slightly W/W
U.S. total commercial stocks drew the week ending November 7. The draw fell short compared to last year, slightly widening the commercial stock surplus. Within the overall draw, another week of very low crude imports drove an unexpected crude stock draw, pushing crude stocks into a deficit versus 2013 levels. The four major refined products drew year-on-year, narrowing their deficit.

Crude Imports in Japan Decline W/W
Japanese crude runs rose and crude imports declined the week ending November 8, causing crude stocks to draw. Finished product stocks built, with most of the build in kerosene. Gasoline demand was relatively strong, the yield fell back and stocks drew. Gasoil demand was again fractionally changed, as were stocks. Kerosene demand fell and the yield was higher so consequently stocks built on the week.

OPEC Meets November 27
Saudi Arabia will be in an uncomfortable position at the upcoming November 27 meeting in Vienna. As the primary beneficiary, along with the two other core OPEC countries, Kuwait and UAE, of OPEC (and non-OPEC) outages since 2010, other OPEC members will expect Saudi Arabia to sacrifice volume in the current oversupply situation.

Creeping Stock Surplus Continues
The preliminary October stock data for the three major OECD markets are in and they show a commercial stock draw of just 2 million barrels versus a stock decline of 31 million barrels in the same month last year. The nearly 1 MMB/D swing in the change in inventories is evidence of the ongoing 1.0-1.5 MMB/D supply surplus relative to demand in 2014.

Weak Naphtha Hampers LPG Demand
LPG remains stuck in strong competition with naphtha in Europe. Propane declined in lockstep with the refined product, losing 4% last week. Butane performed better bust still lost 2%, settling Friday at $505/MT. Butane weakness in Europe has the product's cracking margin soaring. At 48¢/lb, butane is a full ten cents higher than other feedstocks. Naphtha margins improved some, and now look about equivalent with propane in the region. Propane remains relatively expensive, and thus any increase in petrochemical demand will necessitate a widening of LPG's discount to naphtha in both Europe and Asia.

U.S. Ethanol Prices Soar W/W
Ethanol prices jumped again the week ending November 7 as inventories and production during the prior week were lower than expected. This resulted in a short squeeze since many traders had counted on values to decline.

U.S. Ethanol Output and Stocks Increase W/W
Ethanol production rose to 946 MB/D the week ending November 7, up from 929 MB/D during the preceding week as more corn has come available from the new harvest. Inventories built for the second consecutive week, reaching 17.7 million barrels.

Political Risk Scorecard
Progress in the Kurdish negotiations but continued instability in Libya this week.

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.

Applus RTD, a global leader in the provision of integrity technology services, has appointed Phillip Morrison (photo) as its new regional director for the United States.

Phillip will be responsible for all Applus RTD operations in the US and brings a wealth of experience to the company, having over 30 years' experience working in the oil and gas industry.

Working with well-known companies such as TD Williamson and Cameron International, Phillip has completed international assignments and held global responsibility for a strategic pipeline integrity business unit securing sustainable market positions for the business in each role.

Commenting on his appointment, Phillip said: "Joining Applus RTD is an exciting opportunity for me professionally and personally. I am honored to be joining the company in its pursuit of generational market opportunities within the oil and gas, aerospace and other major sectors in the United States.

"The focus and scale of Applus RTD will enable us to become a strategic partner in our customers' plans to ensure the integrity of their assets and grow public confidence in their ability to safely build and operate infrastructure with great predictability."

Iain Light, Applus RTD's executive vice president said: "The US market is one of our core regions which has grown significantly in recent years. This is primarily due to several acquisitions, including X-Ray Industries and the US portion of N-Ray Services, which we announced last week. Both organizations are world-class suppliers of non-destructive testing (NDT) to the aerospace market and gas turbine industry.

"With these acquisitions we are diversifying into a new market space, reflective of a major business strategy for the US region. There are high expectations for the business and the US division and Phillip will lead the path forward to success."

Harvey Gulf International Marine, a major supplier of marine transportation that specializes in providing offshore supply and multi-purpose support vessels for deepwater operations in the U.S. Gulf of Mexico, recently deployed Advanced Logistics' marine management system, SAMM, and preventative maintenance module, Preventer, on its fleet of marine transportation vessels.

Advanced Logistics is a leading provider of offshore marine and logistics management software. The software allows a vessel to generate numerous operational reports onboard and transmit the data to shore in a real time environment. The technology includes electronic logs, safety and crew management, commodity tracking, fuel and lube management, GPS mapping, preventative maintenance and much more coupled with an interactive web based interface for easy access to data.

"We are excited to invest in Advanced Logistics' software. We realize the importance of technology in our business and value the efficiencies it provides to our operations and clients," said Barry Autin, executive vice president and chief administrative officer, Harvey Gulf.

"Advanced Logistics is pleased to have Harvey Gulf embrace our technology," said Jeffery Svendson, Advanced Logistics president and CEO. "We are seeing additional clients gravitate toward our marine applications and we expect more industry leaders to do the same. Our real time technology will enable Harvey Gulf to improve the way they manage their billing, crew, safety, equipment maintenance and regulatory compliance."

Technip has unveiled the name for its latest newbuild Diving Support Vessel (DSV), currently being built by Vard. The state-of-the-art vessel will be known as the 'Deep Explorer'.

The high-specification vessel will be equipped with the latest technology in terms of navigation (Dynamic Positioning class 3) and will feature a 24-man saturated dive system. With her large deck area, working moonpool, work-class ROVs and a 400Te offshore crane, she will also be able to deliver diverless construction activities.

Technip's commitment to investing in the new vessel was announced in April 2014.

Following the detailed engineering and design phase, construction of the ship's hull commenced at Vard Tulcea in Romania a few months ago. On completion of the hull, the vessel will be towed to Vard Langsten in Norway for final equipment outfitting and commissioning. She is scheduled to join the Technip fleet in 2016.

Purpose-designed for the demanding requirements of the North Sea and Canadian markets, the Deep Explorer will be capable of working in extreme weather conditions. Her potential area of operations remains global.

Knut Boe, senior vice- president of Technip's North Sea Canada region, said:
"Technip has a long history in the diving industry and we are very pleased to extend our long-term commitment to diving and to the oil and gas industry with the development of this important new vessel. At delivery, the Deep Explorer will be the most advanced DSV in the world."

As the year draws to a close, attention turns to expectations for 2015. December usually sees a variety of eagerly anticipated E&P spend forecasts, however early indications suggest we will have a mixed bag of operators' increased/decreased spending plans. The drivers for this can be project-specific – biased by exposure to short or long-term projects – and also geographic.

Whilst the spending surveys are a useful guide, what can be learned right now from the drilling and production data? A review of our latest quarterly DW D&P output throws out some interesting geographic trends and here we pick two to illustrate the point:

The USA, the world's largest drilling and OFS market seems to have enjoyed a bumper year-to-date. Our expectations for land drilling in 2014 are just over 40,000 wells, versus 37,677 in 2013. The market has been buoyed by an upturn in activity in Texas shale formations, with the Texas Railroad Commission reporting completions increased by 21% for the first three quarters, with 23,149 over the year.

In contrast Russia, another major OFS market, appears to be suffering. Drilling is conducted by both independent contractors and directly by some E&P companies. Despite the long-term positive underlying drivers, the impact of both geopolitical turmoil and weak oil prices is becoming evident. The largest drilling contractor, EDC has reported drilling volumes down 7% for the first three quarters. Surgutneftegas a 17% drop, whilst for the first half of 2014 Rosneft was down 1.6% and Gazprom reports a slight upturn. Furthermore, international oil companies such as ExxonMobil and Shell have had to suspend activities in Russia as a result of sanctions imposed on the country.

Overall, our expectation is that Russian drilling will be down some 10% in 2014, at 6,700 wells, and will remain so or slightly lower in 2015 before recovering over the period to 2020.

Instances of double-digit movements in drilling from one year to the next are comparatively unusual, particularly so for large, established markets. But as the above illustrates, attempts to generalize the outlook for the whole E&P sector are difficult, and the "devil is always in the detail."

www.douglas-westwood.com

BOEM Will Hold 7 Public Hearings, Accept Public Comments Nov. 7 - Dec. 22

In response to a federal court order, the Bureau of Ocean Energy Management (BOEM) has released the Draft Supplemental Environmental Impact Statement (SEIS) for Chukchi Sea Outer Continental Shelf Oil and Gas Lease Sale 193. BOEM prepared the draft SEIS using the best available science, and working in close consultation with Alaska Native tribes, federal partner agencies, state and local governments, stakeholders and the public. "After a robust and thorough process, BOEM has prepared a Draft Supplemental EIS that addresses the issues identified by the court regarding the Chukchi Sea Lease Sale 193,"said BOEM Acting Director Walter Cruickshank. "In the analysis released today, BOEM used a new exploration and development scenario to evaluate the potential environmental effects of oil and gas activities associated with Lease Sale 193. We look forward to receiving additional public input as we continue to take a balanced approach to the safe and responsible energy development in the region."

BOEM prepared the revised analysis in accordance with the April 24, 2014, remand order of the U.S. District Court for the District of Alaska. The original EIS for Lease Sale 193 was published in 2007 and the sale was conducted in 2008. Subsequent legal challenges and federal court decisions remanded the sale back to BOEM for further analysis, specifically related to the agency's estimates of production levels from likely offshore oil fields that might be developed in the Chukchi Sea. BOEM published a Notice of Intent to Prepare a Supplemental Environmental Impact Statement (SEIS) on June 20, 2014.

The analysis in the Draft SEIS issued today uses the best available data – including actual bidding data – to estimate the highest amount of production that could reasonably result from Lease Sale 193. BOEM predicts a higher exploration and production scenario than previous analyses, based on a better understanding about existing geologic structures in the region as well as improved information about where industry operators are likely to focus their development activities.

Earlier this year, Interior's Bureau of Safety and Environmental Enforcement issued a suspension of operations for all Chukchi leases issued in Lease Sale 193, which stops the lease term from running while BOEM completes this supplemental environmental review. The suspension remains in effect until BOEM completes its environmental review, as directed by the court.

The Notice of Availability for the Draft Supplemental EIS will publish in the Federal Register on Friday, Nov. 7, initiating a 45-day public comment period, which will end Monday, Dec. 22. During this time, BOEM will hold seven public hearings in Alaska, will conduct government-to-government consultation meetings with Alaska Native tribes, and will also accept public comments through regulations.gov.

The Draft Supplemental EIS is available at: www.boem.gov/ak193/PUBLIC HEARING SCHEDULE (All hearings scheduled for 7 p.m. Alaska Time.)

Crowley Maritime Corporation's petroleum services group announces that is has sold two Jones Act tankers, the Pennsylvania and Florida, to Kinder Morgan Energy Partners, L.P. (NYSE: KMP). Crowley will continue to manage the vessels with no changes in crewing or operations. The tankers have been under long term charter transporting gasoline, jet fuel, diesel and crude oil since being placed into service in 2012 and 2013 respectively.

"This transaction helps Crowley maintain a healthy balance in our capital program," said Tom Crowley, chairman and CEO. "We have invested more than $1.5 billion in new, U.S.-built tank vessels in recent years, giving us a fleet of 17 articulated tug barges (ATBs) and four new 330,000 barrel tankers being delivered in 2015 and 2016. We are committed to continuing to provide safe and reliable petroleum transportation to our customers."

Under the new ship management agreement with Kinder Morgan for the Pennsylvania and Florida, Crowley will continue to utilize sailors from the American Maritime Officers Union and Seafarers International Union, who have safely operated these tankers since their inception. The company's ship management group provides worldwide technical management, operating ships for others as if they belonged to Crowley.

"Kinder Morgan's continued expansion into the Jones Act tanker market demonstrates our commitment to provide customers with a variety of safe and efficient means to store and transport crude, petroleum products and chemicals," said John Schlosser, president of KMP's Terminals segment. "We are delighted to expand our relationship with Crowley, a premier provider of marine transportation services."