Hoover Container Solutions Pty Ltd (Hoover), a subsidiary of Hoover Group Inc., has moved to a larger and newly renovated facility in Perth, Western Australia (WA) to accommodate its expansion in the region. The new distribution and service center allows Hoover to provide expanded services in WA while handling all intermediate bulk containers (IBCs), ISO tanks and offshore equipment destined for oil and gas platforms, mining sites, islands and supply bases north of Perth.

The site sits on more than an acre in the Marine Support Complex in Henderson, WA, a suburb of Perth. It is approved as a washing facility by the Department of Agriculture and is completely funded for approval by the Environmental Protection Agency. The facility plans to commence operations by late fall and will have the capability to launder to National Australian Standard - Class Six (NAS 6).

The complex hosts two large wash bays and workshop that have in-ground sump pits and underground storage tanks. A concrete hard stand has numerous ground tanks that capture all rain water that will later be used for the rinsing of tanks.

"Our new location allows us to efficiently and safely clean tanks in Western Australia, which helps us to better serve our customers," said Paul Lewis, president and chief operating officer of Hoover. "We are eager to expand into Western Australia, and this new location is a reflection of that desire."

In the future, the facility will also provide re-certification, repairs and maintenance at a National Australian Testing Authorities (NATA) certified level.

GDF SUEZ E&P UK Ltd and BP today announced a new exploration discovery in the UK Central North Sea. The discovery, which spans GDF SUEZ operated block 30/1f (license P1588) and BP operated block 30/1c (license P363) was flow tested at a maximum rate of 5,350 barrels of oil equivalent per day. The discovery, referred to as 'Marconi' by GDF SUEZ and 'Vorlich' by BP, is located in the Central North Sea.

Left: Location map of Marconi/Vorlich CNS discovery

Ruud Zoon, Managing Director of GDF SUEZ E&P UK Ltd said: "This is an encouraging exploration discovery in a part of the Central North Sea that needs additional volumes of hydrocarbons to open up development options for several stranded discoveries. The discovery is our third successful well this year and demonstrates a continuing commitment by GDF SUEZ to an active exploration and appraisal drilling program on the UK Continental Shelf."

Trevor Garlick, Regional President of BP North Sea said: "As BP marks its 50th year in the North Sea and as the industry looks to maximize economic recovery from the basin, increasing exploration activity and finding new ways to collaborate will be critical to realizing remaining potential. This discovery is a great example of both."

The well was drilled by GDF SUEZ E&P UK Ltd as operator, with the Transocean Galaxy II jack-up rig under a joint well agreement between the two license groups.

Business and Energy Minister Matthew Hancock said: "We are determined to have set the right fiscal and regulatory regimes to make sure we can get the maximum possible economic extraction of oil and gas from the North Sea."

Transocean Galaxy II drill rig

"This discovery shows exactly what can be achieved in the North Sea if companies work together to maximize the considerable potential of remaining oil and gas reserves."

Exploration well 30/1f-13AZ encountered hydrocarbons in a Palaeocene sandstone reservoir in block 30/1c (license P363 operated by BP) and a subsequent side-track into block 30/1f (license P1588 operated by GDF SUEZ E&P UK Ltd) confirmed the westerly extension of the discovery.

Equity interests in the P1588 license are operator GDF SUEZ E&P UK Ltd (50.00%) and partners RWE DEA UK SNS Limited (27.78%) and Maersk Oil North Sea Limited (22.22%).
Equity interests in the P363 license are operator BP Operating Company Ltd (50.00%) and partner Total E&P UK Ltd (50.00%).

GDF SUEZ E&P activities in the UK
GDF SUEZ, through its subsidiary GDF SUEZ E&P UK Ltd is an increasingly significant player in oil and gas exploration and production in the UK Continental Shelf. Since entering the region in 1997, the company has built up a substantial portfolio of assets in the Central and Southern North Sea, and West of Shetland, comprising more than 50 licenses, 20 as operator*. The company entered the UK onshore market in October 2013 when it agreed to acquire a 25% share in 13 licenses located in Cheshire and the East Midlands from Dart Energy, which is operator of the licenses.

GDF SUEZ E&P UK is the operator of the Cygnus development, one of the most significant undeveloped gas fields in the North Sea and employs more than 300 staff and contractors in offices in London and Aberdeen. Cygnus is located in the Southern North Sea, 150 kilometers off the coast of Lincolnshire. It has gross 2P (proved and probable) reserves of approximately 18 billion cubic meters. First gas is targeted for late 2015.

*As awarded by DECC

• Lewek Constellation, together with Lewek Express, have successfully executed a full field installation for the VAALCO Etame Extension Project offshore Gabon           

• Total scope included installation of rigid and flexible pipelines along with the transportation and installation of two production platforms

• Contract value US$120 million, as previously announced on 7 August 2013

EMAS AMC, the subsea services division of EMAS, a leading global offshore contractor and provider of integrated offshore solutions to the oil and gas (O&G) industry, has announced that it has recently completed a US$120 million project for VAALCO Gabon (Etame) Inc. offshore Gabon in West Africa using the new build Lewek Constellation on her inaugural installation project.

The work scope included the transportation and installation of two jackets, topsides, flare booms and living quarters for the Etame and Southeast Etame / North Tchibala ("SEENT") platforms along with the installation of a new living quarters and a gas lift package onto the FPSO Nautipa.

Earlier this year EMAS AMC also successfully installed rigid pipelines and flexibles using the Lewek Express and performed 60 days of saturation diving to complete the subsea tie-ins using two dive support vessels on VAALCO's Etame and SEENT Fields offshore Gabon.

"We are delighted to have successfully completed this workscope for VAALCO, adding to EMAS AMC's established track record of delivering successful projects safely, efficiently and on time," said Mr Lionel Lee, Ezra's Group CEO and Managing Director.

"I would like to extend my gratitude to VAALCO for offering us this inaugural opportunity for the Lewek Constellation to showcase her heavy lift capabilities, as well as allowing us to display our subsea engineering expertise with the transportation and installation of pipelines. This was an important first project for the Lewek Constellation, and I am pleased to observe that the vessel and the project team displayed excellence in execution."

Mr Craig Devenney, VAALCO Energy, Inc. Construction Manager, said, "The EMAS AMC project team worked extremely well with the VAALCO team on a very significant part of our Etame Marin expansion project - the installation of the two new production platforms on our offshore Gabon permit. The Lewek Constellation, their impressive new build vessel, performed the heavy lifts of the platform, jackets and decks supported by the Lewek Express and associated dive support vessels for the pipe lay and subsea tie-in portions of the project. The successful work by EMAS AMC sets the stage for VAALCO to commence the drilling of production wells from the new platforms beginning in the fourth quarter of 2014. We look forward to an opportunity to work with the EMAS AMC project team again."

The Lewek Constellation is now headed to the Netherlands for the installation of her multi-lay tower and ancillary equipment for pipe lay activities, after which she will proceed to the Gulf of Mexico to begin work for Noble Energy in the first quarter of 2015.

The Khurais and Manifa projects in Saudi Arabia have the most recoverable reserves among the world's top 100 upstream developments, with approximately 19.4 billion barrels of oil equivalent (boe) and 13.7 billion boe, respectively, according to research and consulting firm GlobalData.

The company's latest report* states that these assets boast substantial recoverable crude oil reserves, with Khurais having 18.2 billion barrels (bbl) and Manifa holding 13.5 billion bbl. The projects also have recoverable natural gas reserves of 6.8 trillion cubic feet (tcf) and 1.4 tcf, respectively.

Robert Stevens, GlobalData's Lead Upstream Analyst covering the Middle East and North Africa, says that despite these impressive reserves, Saudi Aramco, which owns both fields, has encountered a number of difficulties during their development.

Stevens explains: "The Khurais project has the distinction of being one of the largest oil development projects in the world. The most recent activity saw 12 drilling rigs running simultaneously between 2006 and 2009, creating about 300 wells, with production beginning in June 2009.

"A major challenge for operations in the Khurais field is to increase the recovery rate of crude, but given the field's vast size, even a 1% increase in recovery rate would result in millions of additional barrels. Security is also a problem for Khurais, despite the sustained efforts of the Saudi Arabian government and Saudi Aramco."

A different set of issues faced the Manifa field, where most drilling activities and the construction of the central processing facility for crude oil production were undertaken on the coast.

Stevens comments: "Saudi Aramco and the contractors of the Manifa field confronted numerous environmental and economic obstacles during the development of the field.

"Environmental issues in the Arabian Gulf include earthquakes, which the contractors had to ensure the structures could withstand during construction."

Top 100 Global Upstream Developments Overview – Major Project Developments and Key Challenges

Responsibilities now include Safety, Security, Health and Environment (SSHE)

Athens Group, a leading provider of independent, 3rd-party technology assurance and inspection services for oil and gas drilling and production assets, has expanded the role of the Chief Safety Officer, Don Shafer, to include not only safety, but also security, health and environment.

"The added emphasis on security is necessary because of Athens Group growth and the increased value rig owners and operators place on the systems-based quality assurance services we provide to improve the safety and reliability of their drilling and production assets," said Mike Haney, CEO. "Plus, as we extended our service delivery presence beyond Europe, Asia, and Africa into the Middle East and Latin America, we needed to expand our SSHE procedures," he concluded.

The increased hacking and malware being seen on oil and gas assets necessitated the emphasis on "Security." Athens Group's new BOP and Rig Inspection services include comprehensive security checklists. These inspections, along with 3rd-party Hardware in the Loop (HIL) Verification services require a company-wide focus on security.

Don Shafer, now the Chief Safety, Security, Health and Environment Officer, is an Athens Group co-founder and the company's first Technical Fellow.

The Bureau of Ocean Energy Management (BOEM) has announced that it will prepare an Environmental Impact Statement (EIS) in support of a potential oil and gas lease sale in Cook Inlet, off Alaska's south central coast. 
The Notice of Intent to Prepare an EIS, which will be published in the Federal Register on Oct. 23, 2014, will open a public comment period extending through Monday, Dec. 8, 2014. During this time, BOEM will hold public scoping meetings and accept comments through www.regulations.gov. The Notice is available here.

The EIS analysis will focus on the potential effects of leasing, exploration, development and production of oil and natural gas in the proposed lease sale area, which BOEM identified in November 2013. That Area Identification reflected BOEM's approach of using scientific information and stakeholder feedback to proactively determine, in advance of the potential lease sale, which specific areas within a planning area offer the greatest resource potential and industry interest while reducing potential conflicts with environmental and subsistence considerations.

The area identified last November for the proposed Cook Inlet sale is closer to existing infrastructure, avoids nearly the entire area designated as critical habitat for the beluga whale and the northern sea otter, completely avoids the critical habitat for the Stellar sea lion and the North Pacific right whale, and reduces effects on national parks, preserves and wildlife refuges. It also excludes much of the subsistence-use area for the Native villages of Nanwalek and Port Graham that were identified during the last lease sale process in the area.

"We look forward to receiving thoughtful, substantial input on this EIS," said Dr. Walter Cruickshank, BOEM Acting Director. "In particular, we need to hear from residents of the communities along Cook Inlet on how the proposed leasing area is currently being used and what specific areas need extra attention. To address these issues, we will use rigorous science together with traditional knowledge and input we receive from the The Notice of Intent to Prepare an EIS is an early step in the leasing process."

The Notice does not indicate a final decision to hold a lease sale has been made. Rather, information gathered via the scoping process will help BOEM prepare the EIS, which in turn will inform a final decision on whether to hold the sale.

SCHEDULE FOR SCOPING MEETINGS
Date/Time Location
Nov. 12, 7pm Seldovia (Tribal Conference Center)
Nov. 13, noon Nanwalek (Tribal Community Center)
Nov. 13, 7pm Homer (Bidarka Inn)
Nov. 14, 7pm Soldotna (Kenai Peninsula College) 
Nov. 24, 7pm Anchorage (Loussac Library)

Currently, there are no active leases nor oil/gas exploration or development facilities in the Cook Inlet federal waters. The Department of the Interior's 2012-2017 Outer Continental Shelf Oil & Gas Leasing Program proposes one potential Cook Inlet Oil and Gas lease sale.

SBM Offshore announces it has signed a Production Handling Agreement (PHA) with Noble Energy to produce the Big Bend and Dantzler fields to the Thunder Hawk DeepDraft™ Semi (photo) located in 6,060 feet of water in the Gulf of Mexico (GoM).

Production fees associated with produced volumes are estimated to lead up to projected revenue of US$400 million to be delivered over the ten year primary contract period. First oil from Big Bend and Dantzler are expected in late 2015 and first quarter 2016 respectively. At these levels both fields will utilize a maximum of 85% of total daily asset capacity, and brownfield construction to upgrade the facility will be handled by Noble Energy.

The Big Bend field is 18 miles from the Thunder Hawk platform in 7,200 feet of water in Mississippi Canyon Block 698. Noble Energy operates a 54% working interest in Big Bend alongside W&T Energy VI, LLC with 20%, (a wholly owned subsidiary of W&T Offshore Inc.), Red Willow Offshore, LLC with 15.4% and Houston Energy Deepwater Ventures V, LLC with 10.6%.

The Dantzler field is 7 miles from the Thunder Hawk platform in 6,580 feet of water in Mississippi Canyon Block 782. Noble Energy operates Dantzler with a 45% working interest. Additional interest owners are entities managed by Ridgewood Energy Corporation (including ILX Holdings II LLC, a portfolio company of Riverstone Holdings, LLC) with 35% and W&T Energy VI with 20%. Big Bend and Dantzler will be developed via a dual pipe-in-pipe loop system.

The Thunder Hawk DeepDraft™ Semi, installed in July 2009, was developed as a Steel Catenary Riser (SCR) friendly floater solution. The deck and hull can be integrated quayside avoiding costly offshore lifting and system commissioning operations.

SBM CEO Bruno Chabas noted: "SBM Offshore is pleased that the Thunder Hawk platform allowed for a cost effective development solution for Noble Energy and its partners. The deepwater semi solution offers numerous advantages for subsea developments including reduced development capital, lower operating costs and an accelerated development schedule. This confirms the strategic value of the platform for deepwater Gulf of Mexico production, and we are excited to be offering valuable solutions in supporting the development of the Big Bend and Dantzler fields."

ExxonMobil and its employees and retirees in Northern Virginia raised more than $2.4 million for charitable organizations and local charities in the Northern Virginia area during the 2014 Employees' Favorite Charities campaign.

Employees and retirees contributed to nearly 600 charities that provide a wide range of local health and human services to residents in Fairfax, Northern Virginia and the Washington, D.C. capital region.

"ExxonMobil has a long history of supporting community groups and educational organizations in Northern Virginia through financial contributions and thousands of hours volunteered by employees and retirees," said Alan Kelly, president, ExxonMobil Fuels, Lubricants & Specialties Marketing Company. "The campaign is powered by the generosity of our employees and retirees as a way to give back where we live and work."

Since 2002, ExxonMobil and its employees and retirees in Fairfax have provided more than $29.6 million and 410,664 volunteer hours in support of nearly 6,250 charitable organizations in the area.

Statoil has announced that Peter Hutton (photo) has been appointed senior vice president CFO investor relations and will report to chief financial officer Torgrim Reitan.

Hutton is currently director of oil and gas research in RBC Capital Markets London, and has broad international experience from the oil and gas industry. He has spent 12 years in the oil and gas industry and 16 years within the financial industry.

Hutton holds a master of arts degree in modern history from the University of Oxford, UK and a diploma in international politics and the Middle East from Birkbeck College, UK. He will take on the role from 1 January 2015.

"Peter has extensive insight into the oil and gas industry and the financial markets. He has consistently been ranked as one of the best equity analysts and has a broad network across companies and institutions. I look forward to his contribution to Statoil and to have him as a part of my team," says Reitan.

Shell announced on Wednesday a frontier exploration discovery offshore Gabon, West Africa. The well Leopard-1 encountered a substantial gas column with around 200 meters net gas pay in a pre-salt reservoir.

Leopard-1 is located around 145 kilometers off the Gabonese coast, west of Gambia. It was drilled in water 2,110 meters deep to a total vertical depth of 5,063 meters. Shell and partners are planning to undertake an appraisal program to further determine the resource volumes.

"Shell has been exploring in Gabon for over 50 years. This latest deep water discovery is a testament to the innovation of our explorers in pursuing new plays, and application of our global sub-surface expertise," said Andy Brown, Shell Upstream International Director. "We are proud to be sharing this success with CNOOC Limited, our partner in the license."

Leopard-1 was drilled in license BCD10, operated by Shell (75%). Second partner in the venture is CNOOC Limited (25%).

This frontier discovery follows recent deep water exploration successes in the heartlands for Shell Exploration in the Gulf of Mexico and Malaysia.

NYC-based PIRA Energy Group believes that falling crude prices and the resulting pressure on margins seen by producers may directionally provide less headroom for regulators to add additional costs to production via new or intrusive regulations. In the U.S., large stock changes: crude build and product draw. In Japan, typhoons throttle back crude runs, imports, and tempers demand. Specifically, PIRA's analysis of the oil market fundamentals has revealed the following:

Fracking Policy Monitor
Falling crude prices and the resulting pressure on margins seen by producers may directionally provide less headroom for regulators to add additional costs to production via new or intrusive regulations. Federal regulations with potential impacts on fracking production are still expected from President Obama's Methane Strategy, though EPA has shown an inclination towards expanding voluntary efforts as well. A decision on whether and how to regulate is expected soon, with any regulations to follow by end-2016. On the state level, the ability of localities to ban fracking via zoning authority continues to be a hot issue.

Large U.S. Stock Changes: Crude Build, Product Draw
Oil prices have no near-term anchor. This past week saw the second largest weekly crude inventory build of the year which was 1.0 million barrels greater than the rather large product stock decline. Week-on-week product stocks fell as reported demand increased, product imports declined and crude runs dropped to the lowest level since Spring maintenance. The crude inventory deficit narrowed while gasoline's stock deficit increased. Distillate, kero-jet and residual fuel oil inventories are virtually identical to last year.

Japanese Typhoons Throttles Back Crude Runs, Imports, and Tempers Demand
Crude runs eased back due to turnarounds and typhoon related impacts. Crude imports eased and stocks drew slightly. Finished product stocks posted a modest build. Gasoline demand was lower despite the "Sports Day" holiday, which normally should lift demand, but the typhoon impact appears to have dominated. Gasoil demand was predictably lower, with higher yield, and stocks built modestly. Refining margins remain very soft with all the major product cracks weakening.

World LPG Export Volumes Soaring
Global seaborne trade of LPG soared to record levels in September with volumes approaching 7 million metric tons of LPG. Total Middle East exports in September were roughly 3.0 million metric tons in the high end of the range this year but not near July 2013 highs of some 3.5 million. US Exports for September were approximately 1.4 MM metric tons, nearly 50% of the total Middle East volumes. Increasing US exports are the main driver pushing global waterborne trade to record levels.

U.S. Ethanol and Biodiesel Prices Rise
After falling for six straight weeks, U.S. ethanol prices found support at the $1.46-$1.50 per gallon level and increased the week ending October 10.U.S. biodiesel assessments rose back above $3 per gallon last week, but most producers failed to cover cash manufacturing costs.

Ethanol Output and Inventories Decrease
U.S. ethanol production dropped to 885 MB/D the week ending October 10, erasing most of the gains from the preceding week and edging close to the six-month low 881 MB/D set two weeks earlier. Stocks were down 295 thousand barrels to a five-week low 18.4 million barrels.

The information above is part of PIRA Energy Group's weekly Energy Market Recap - which alerts readers to PIRA's current analysis of energy markets around the world as well as the key economic and political factors driving those markets.

Company Also Announces Additional Executive Leadership Changes

Noble Energy, Inc(NYSE: NBL) announced that the Board of Directors has elected David L. Stover as President and Chief Executive Officer, succeeding Charles D. Davidson as CEO. Mr. Stover's election is consistent with the management succession plan disclosed in April of this year when it was announced that Mr. Davidson would be retiring on May 1, 2015. Mr. Stover has previously been serving as the Company's President and Chief Operating Officer. Mr. Davidson will continue to serve as the Company's Chairman until the 2015 Annual Meeting at which time he will be leaving the Board of Directors. The Board also announced that it intends to elect Mr. Stover as Chairman of the Board immediately following the 2015 Annual Meeting.

The Company also announced that Susan M. Cunningham has been elected Executive Vice President responsible for Noble Energy's global Exploration, New Ventures, Frontier, Environmental, Health, Safety, Regulatory and Business Innovation activities. In addition, Gary W. Willingham has been elected Executive Vice President responsible for Noble Energy's global Production, Drilling, Major Projects and Supply Chain activities. Both Ms. Cunningham and Mr. Willingham will report directly to Mr. Stover.

The Board of Directors met on Wednesday and paid homage to Chairman and CEO Christophe de Margerie, who died tragically in an airplane accident in Moscow on the night of October 20-21, 2014.

After joining the Group in 1974, Christophe de Margerie was appointed to the Executive Committee in 1999, then named CEO of Total on February 14, 2007, and Chairman and CEO on May 21, 2010. He dedicated his brilliant career to the development of the Group, enabling its glowing success in the oil and gas sector and more recently in solar energy. The exceptional human and professional qualities that Christophe de Margerie exhibited during his time at Total were largely responsible for the success of the Group.

Following the recommendations of the Governance & Ethics Committee which met today, the Board of Directors made two unanimous decisions:

It named Thierry Desmarest Chairman of the Board of Directors. Mr. Desmarest is currently a member of the Board and Honorary Chairman of the Board.

It named Patrick Pouyanné Chief Executive Officer and President of the Executive Committee. Until today, he was President of Refining & Chemicals and a member of the Executive Committee. After holding several important executive positions in the Upstream segment in France and internationally over the past fourteen years, Patrick Pouyanné successfully managed the transformation of the Refining & Chemicals segment.

Thierry Desmarest's role as Chairman of the Board of Directors will conclude at the end of 2015 in accordance with the age limits stipulated in the Group's bylaws. The positions of Chairman of the Board of Directors and Chief Executive Officer will then be recombined.

Following the designation by the Central Works Council of a Board member to represent employee shareholders, which is scheduled for November 4, 2014, the Group's Board of Directors will consist of fourteen members, including one employee shareholder representative.

Thierry Desmarest

About Thierry Desmarest
A graduate of the École Polytechnique and an Engineer of the French Corps des Mines, Mr. Desmarest served as Director of Mines and Geology in New Caledonia, then as technical advisor at the Offices of the Minister of Industry and the Minister of Economy. He joined TOTAL in 1981, where he held various management positions, then served as President of Exploration & Production until 1995. He served as Chairman and Chief Executive Officer of Total from May 1995 until February 2007, and then as Chairman of the Board of Total until May 21, 2010. He was appointed Honorary Chairman and remains a director of Total and Chairman of the Total Foundation.
Director of TOTAL S.A. since 1995. 
Last renewal: May 17, 2013 until 2016.
Chairman of the Governance & Ethics Committee, member of the
Compensation Committee and the Strategic Committee. 
The Honorary Chairman performs representation missions of the Group at a high level in accordance with the decision of the Board of Directors on May 21, 2010.

Patrick Pouyanné

About Patrick Pouyanné
A graduate of École Polytechnique and an Engineer of the French Corps des Mines. From 1989 to 1996, he held various positions in the French Industry Ministry and in ministerial offices, including Environment and Industry Technical Advisor to the Prime Minister from 1993 to 1995 and Chief of Staff to the Information Technology and Space Minister from 1995 to 1996. He joined Total in January 1997, as Chief Administrative Officer of Total E&P Angola and became Group Representative in Qatar and CEO of Total E&P Qatar in 1999.
In August 2002, he was named Senior Vice President, Finance, Economics and Information Systems in Exploration & Production. In January 2006, he became Senior Vice President, Strategy, Business Development and R&D in Exploration & Production. Patrick Pouyanné has been a member of Total's Management Committee since May 2006. In March 2011, he was appointed Senior Vice President, Chemicals and Senior Vice President, Petrochemicals. In January 2012, Patrick Pouyanné was appointed President, Refining & Chemicals and member of the Executive Committee.

Operator Statoil has together with PL169 partners proved new oil resources in the D-structure in the vicinity of the Grane field in the North Sea.

The Grane platform in the North Sea. (Photo: Harald Pettersen)

Well 25/8-18 S, drilled by the rig Transocean Leader, proved an oil column of 25 meters in the Heimdal Formation. The estimated volume of the discovery is in the range of 30-80 million barrels of recoverable oil.

"We are pleased with having proved new oil resources in the Grane area," says May-Liss Hauknes, Statoil vice president for exploration in the North Sea. "Near-field exploration is an important part of Statoil's exploration portfolio on the Norwegian continental shelf. It provides high-value barrels that are important for extending the production life of existing installations."

The D-structure is located on the Utsira High, just seven kilometers north of the Grane field and in the immediate proximity of the Grane F oil discovery made by Statoil in 2013. The D-structure was originally penetrated in 1992 by well 25/8-4, which encountered just one metre of oil corresponding to about six million barrels.

"Well 25/8-18 S appraised the D-structure and proved substantial additional oil volumes in an excellent sandstone reservoir. This is a result of a recent re-evaluation of the area done by the partnership. New seismic and improved subsurface mapping have given us new confidence in the D-structure and allowed to mature it towards a drilling decision," says Hauknes.

"Tie in to the nearby Grane field is one of the development solutions that will be evaluated for the discovery," according to Gro Aksnes, Statoil vice president for area development in Operations West.

Exploration well 25/8-18 S is located in PL169 in the North Sea. Statoil is operator with an interest of 57%. The partners are Petoro AS (30%) and ExxonMobil Exploration & Production Norway AS (13%).

For further details on the results of exploration well 25/8-18 S, please see the press release issued by the Norwegian Petroleum Directorate >>

Singapore has traditionally been regarded as the clear leader in the construction of jack-up rigs, accounting for 55% of global deliveries between 2000 & 2010. However, in the past five years this position has faced increasing challenge from Chinese yards willing to offer highly attractive financing in order to secure market share – China currently accounts for 47% of the orderbook compared to Singapore's 33%. With this trend expected to continue, Singaporean yards have been aggressively pursuing higher value EPC markets signalled by Keppel's "CAN DO" drillship project, which when completed will be arguably the most technically advanced asset of its kind. Both Keppel and Sembcorp have also made major investment in their FLNG capability.

We do not expect Singapore to completely retreat from the Jack-up market. However, this focus on frontier EPC segments is both a clear reaction to the inevitable rise of China (in what was considered "their" business) and a warning shot to South Korean dominance in both drillships and FLNG. The South Korean big three of Samsung, Hyundai & DSME have all struggled in recent years with balancing their traditional efficiency in light of a tighter price environment (see the earlier DW Monday on Capex Compression) and a shift away from heavy construction seems likely as suggested by SHI's recently announced merger with Samsung Engineering.

The offshore EPC landscape is undoubtedly going through some regional realignment.

www.douglas-westwood.com

BMT Group Ltd (BMT), the leading international design, engineering and risk management consultancy, has announced the appointment of Ray McGlynn (photo) as Sales Manager for Offshore Oil and Gas.

Ray will be responsible for European and African regional sales support and assisting Louise Ledgard, Offshore Oil and Gas Business Development Lead in supporting the co-ordination of ocean engineering sales across the BMT Group.

Ray has extensive experience within the oil and gas industry including marketing and sales activities, strategic planning and business development, as well as extensive project management skills; from initial tendering through to project completion.

BMT Group's Energy and Environment Director, Ralph Rayner commented "We are delighted that Ray has joined our offshore oil and gas team. His business acumen and engineering experience will be invaluable as we seek to further develop the scope of services to our clients in the offshore oil and gas sector."