Reflex Marine, a global leader in safe marine access solutions, launches its’ latest innovation, WAVE-4.
The company’s dedication to safety and innovation over the last 20 years’ has led to the improvement of safety standards for personnel transfers across the globe. Now Reflex Marine are adding a new device to their range to meet the needs of their diverse client base.
WAVE-4 captures over 20 years of learning, experience and feedback from the industry. This new personnel carrier for standing passengers offers fall prevention, impact protection and has floating and self-righting capabilities.
Photo courtesy of Seaway Heavy Lifting’
James Strong, Project Manager, said: ‘Every year millions of passengers are safely transferred using Reflex Marine carriers. We are committed to increasing this number and ensuring all workers are transferred safely and efficiently whilst working offshore. The company’s aim, with WAVE-4, is to provide the highest level of protection and performance for any standing transfer carrier on the market.’
‘With extensive passenger protection and the smallest footprint of any rigid transfer carrier on the market, WAVE-4 offers clients a convenient, cost-efficient and safe way to move their crew.’
All Reflex Marine carriers are subject to the most rigorous testing of any personnel transfer carrier in the industry. Testing and verification ensures passengers are protected from the 4 key risks of personnel transfer by crane, falling, heavy landings, side impacts and immersion.
The company put considerable focus into improving the ownership experience, making the product more durable and simplifying inspection and maintenance. High costs and significant product downtime was common feedback from owners of existing standing transfer devices.
Reflex Marine clients can now benefit from a full range of transfer solutions for different sea states, crew volumes and preferences. Clients continue to be supported globally by the company’s network of approved partners.
There will be a WAVE-4 product demonstration in Great Yarmouth, UK, on 3rd August, for more information click here.
Completion of the first phases of an £11.95 million quay extension at Lerwick Harbour’s deep-water Dales Voe Base has facilitated mobilization of a large offshore construction vessel ahead of a contract offshore Canada.
Subsea 7’s Seven Waves. Photo credit: John Coutts
Subsea 7’s 18,666 gross ton, 146-meter long Seven Waves berthed earlier this week, the day after handover of the second phase of the quay to Lerwick Port Authority. Last week, the completed phase one was used for the first time, with the coaster Eendracht delivering kit for transfer to the construction vessel. Subsea 7 is a leading global contractor in seabed-to-surface engineering, construction and services to the offshore energy industry.
Captain Calum Grains, Lerwick Port Authority’s Harbormaster and Deputy Chief Executive, said: “Seven Waves is an early harbinger of the type of work which the expanded Dales Voe Base, with its enormous capacity, quay strength, water depth and laydown space, is ideally suited for in supporting a wide range of offshore industry projects.
“Remaining infrastructure works are soon to be completed and the principal contractor, BAM Nuttall has delivered an excellent quality asset to the port.”
With the quay being extended by 75-meters to 130 meters, BAM Nuttall is expected to hand over the final phase three section around end-July.
Complementary works at the base, including reclamation, laydown yard and demolition of a redundant building, will continue until the autumn with local contractor, FL Johnston.
The Shetland port is a long-established and leading centre of support for the offshore industry in the northern North Sea and in the Atlantic to the west, including subsea development projects and decommissioning.
Golar LNG Limited (“Golar”) and Schlumberger have announced the creation of OneLNG℠, a joint venture to rapidly develop low cost gas reserves to LNG. The combination of Schlumberger reservoir knowledge, wellbore technologies and production management capabilities, with Golar’s low cost FLNG (Floating LNG) solution, will offer gas resource owners a faster and lower cost development thereby increasing the net present value of the resources.
Golar and Schlumberger have 51/49 ownership of the joint venture. Golar and Schlumberger have agreed an initial investment commitment to cover the estimated equity needed to develop the first project. In addition, the parties will on a project-by-project basis discuss additional debt capital as required. This future financing will take into account Golar’s FLNG intellectual property through an equitable contribution mechanism to be agreed between the parties.
Golar Vice Chairman, Tor Olav Troim said, “Our new venture with Schlumberger provides a powerful union of their oilfield services technology and production management business, and our low cost FLNG solution. It leverages Golar’s LNG expertise, and builds upon our industry leading position as a midstream solutions provider.”
Schlumberger, President Operations, Patrick Schorn commented, “This new joint venture is uniquely positioned to optimize the development of low cost gas reserves. The technology platform and production management capability that Schlumberger brings will enable a total system approach, leading to a simpler and fast-tracked FID process, and reliable operational execution for the benefit of the gas resource owners.”
OneLNG will be the exclusive vehicle for all projects that involve the conversion of natural gas to LNG, which require both Schlumberger Production Management services and Golar’s FLNG expertise. After reviewing the current market opportunities where 40% of the world’s gas reserves can be classified as stranded, both parties are excited at the future prospects of OneLNG and are confident that it would conclude 5 projects within the next 5 years.
The USGS has assisted the Government of India in the discovery of large, highly enriched accumulations of natural gas hydrate in the Bay of Bengal. This is the first discovery of its kind in the Indian Ocean that has the potential to be producible.
Natural gas hydrates are a naturally occurring, ice-like combination of natural gas and water found in the world’s oceans and polar regions. The amount of gas within the world’s gas hydrate accumulations is estimated to greatly exceed the volume of all known conventional gas resources.
“Advances like the Bay of Bengal discovery will help unlock the global energy resource potential of gas hydrates as well help define the technology needed to safely produce them,” said Walter Guidroz, USGS Energy Resources Program coordinator. “The USGS is proud to have played a key role on this project in collaboration with our international partner, the Indian Government.”
The deepwater D/S Chikyu as deployed during NGHP-02 was designed by the Japanese government for international scientific drilling operations (photo courtesy JAMSTEC).
This discovery is the result of the most comprehensive gas hydrate field venture in the world to date, made up of scientists from India, Japan and the United States. The scientists conducted ocean drilling, conventional sediment coring, pressure coring, downhole logging and analytical activities to assess the geologic occurrence, regional context and characteristics of gas hydrate deposits in the offshore of India.
This research expedition, called the Indian National Gas Hydrate Program Expedition 02, is the second joint exploration for gas hydrate potential in the Indian Ocean. The first expedition, also a partnership between scientists from India and the United States, discovered gas hydrate accumulations, but in formations that are currently unlikely to be producible.
Although it is possible to produce natural gas from gas hydrates, there are significant technical challenges, depending on the location and type of formation. Previous studies have shown that gas hydrate at high concentrations in sand reservoirs is the type of occurrence that can be most easily produced with existing technologies.
As such, the second expedition focused the exploration and discovery of highly concentrated gas hydrate occurrences in sand reservoirs. The gas hydrate discovered during the second expedition are located in coarse-grained sand-rich depositional systems in the Krishna-Godavari Basin and is made up of a sand-rich, gas-hydrate-bearing fan and channel-levee gas hydrate prospects. The next steps for research will involve production testing in these sand reservoirs to determine if natural gas production is practical and economic.
“The results from this expedition mark a critical step forward to understanding the energy resource potential of gas hydrates,” said USGS Senior Scientist Tim Collett, who participated in the expedition. “The discovery of what we believe to be several of the largest and most concentrated gas hydrate accumulations yet found in the world will yield the geologic and engineering data needed to better understand the geologic controls on the occurrence of gas hydrate in nature and to assess the technologies needed to safely produce gas hydrates.”
The international team of scientists was led by the Oil and Natural Gas Corporation Limited of India on behalf of the Ministry of Petroleum and Natural Gas India, in cooperation with the USGS, the Japanese Drilling Company, and the Japan Agency for Marine-Earth Science and Technology. In addition, USGS is working closely with the National Institute of Advanced Industrial Science and Technology Japan on the analysis of pressure core samples collected from sand reservoirs with high gas hydrate concentrations.
The USGS has a globally recognized research program studying natural gas hydrates in deepwater and permafrost settings worldwide. USGS researchers focus on the potential of gas hydrates as an energy resource, the impact of climate change on gas hydrates, and seafloor stability issues. More information can be found about the study and other USGS energy research here.
Fugro has completed a 33-month period of metocean data acquisition for Hess Ghana Exploration Limited. Measurements were made at three locations in an area offshore western Ghana known as the Deepwater Tano/Cape Three Points block, in water depths of approximately 2,400 metres. The data are to be used by Hess in support of its operations in Ghana.
A Fugro-manufactured Wavescan buoy was deployed to measure waves, currents and meteorological and seawater parameters, with real-time data displayed on a project-specific webpage that was accessed by Hess via a secure log-in. A long mooring was deployed, measuring current profiles over the complete water depth, as well as seawater temperature and salinity. Fugro also deployed a short mooring to acquire near seabed currents. Data from both current moorings were stored on board the instruments’ internal memories and recovered during each of the service visits which were at three-month intervals.
Over the life of the project Fugro utiliszed vessels from its fleet, including the Fugro Frontier, to accomplish the nine site visits required, as well as vessels from the spot market. With the aim of pro-active cost reductions, vessel and personnel mobilizations were minimized by combining site visits with other Fugro operations in the region. After each service visit the metocean measurements were processed, analyzed and reported to provide Hess with quality controlled data detailing the metocean conditions in the area.
“We demobilized the equipment in June and we are now processing the data from the final phase,” said Jonathan Ainley, Commercial Manager at Fugro GEOS. “The final report will include data from each of the three stations over the complete duration of the project and will form part of the wider FEED study being carried out by Hess.” The information will be utilized for a number of engineering activities including riser and facilities design, fatigue calculations and operability calculations, as well as assisting decisions for physical construction at the field.
Current Prices Near Lows Even Though Surplus Stocks Revised HigherGlobal macro landscape is brighter, especially with dovish central banks. Oil market rebalancing has temporarily stalled in 3Q16, but it should resume strongly in 4Q with much more robust demand growth. Global supply is declining with sharp declines in non-OPEC crude/condensate more than offsetting increases in non-crude liquids and OPEC crude production. Prices are currently too low and should rally from here. Political risks to supply have turned higher. U.S. crude exports should pick up and contribute to substantial U.S. crude stock draws in August and September. Refinery margins will be weak this autumn as ample light product stocks will be slow to work off.
Conventional wisdom suggests that the cure to low natural gas prices ultimately rests with producers. Yet, despite the record slump in cash prices, Canadian production appears to be defying convention, increasing ~0.3 BCF/D year-on-year during the first half of this year, with producer and midstream companies guiding toward a relatively stable supply outlook ahead. Robust Canadian production underscores the general resilience of North American supply, with slowing WCSB production growth more than offsetting declines from other conventional resources. In contrast to the Lower 48, where take-away pipeline has limited shale growth, only modest declines are taking hold this summer with Canadian production poised to rebound this winter.
An unusually high number of French nukes are offline for maintenance, bringing the load factor of French nuclear down to a multi-year low during July. Assuming nuclear stays at minimum levels of the historical range would bring French prices up to the low €40/MWh during the winter months. The current proposal of the carbon floor is shaping up as a penalty on coal units, which would have a very limited impact on shorter-term prices, but it increases the risks of retirements. The risk of plant closures, with oil units already being retired, makes French prices more likely to move toward Spain and Italy in the medium term. We see the UK market unable to balance for at least 90 hours in the upcoming winter, without calling CBR. Base and peak spark spreads for the winter ahead have surged in anticipation of these risks.
There is wide range in views on the optimal price of carbon — often based on price levels needed to achieve emissions reduction goals. U.S. government estimates of the social cost of carbon utilize a methodology based on academic models that calculate avoided damages. Already used for federal cost-benefit calcs, more recently these estimates have been used in international agreements, for state-level policy, and as a carbon price standard with commercial implications for energy market players. PIRA's report discusses how the social cost of carbon is calculated and used and how modeling choices lead to an estimate that reflects political realities as well as scientific calculations. Implementation of carbon prices generally ends up well below estimates of carbon’s social cost.
While most traders remain focused on production estimates for U.S. corn and soybeans, the wheat market quietly made a 10-year low of $4.035 for the prompt contract last week, and quietly is exactly the way the Non-Commercial shorts like it. The Non-Commercial short in SRW is quickly approaching 145K contracts according to last week’s COT, while the HRW short is nearer 37K contracts. Depending on how you look at some of these numbers the SRW short is probably the third largest in history and may even be at a record currently.
The latest U.S. GDP release disappointed, as it showed the pace of year-on-year economic growth slowing in recent periods. But underlying data suggested that a growth pick-up will materialize soon — after all, a large portion of the recent weakness was due to an inventory drawdown, and this will not continue; and outside of business investment, key activity sectors are in good shape. In the euro area, the pace of second quarter GDP growth matched expectations, and the resilience in business confidence surveys paints an encouraging picture for near-term growth. In South Korea, second quarter growth exceeded expectations, and a recent strengthening in industrial activity is encouraging for the outlook.
Rates in all the major tanker sectors in July have already hit or are fast approaching 2016 lows. Rates are unlikely to improve before the fourth quarter, although fleet capacity growth this year will also limit prospects for a meaningful winter rally.
U.S. ethanol manufacturing margins worsen. RIN generation increases. D6 values near $1.00.
Far East destination markets are rioting against an avalanche of LPG supply in-flows. Cash propane and butane cargo prices plunged last week, well below the newly printed Saudi Contract Prices. The prompt paper arbitrage to the Far East from the Arab Gulf plunged to near zero, indicating that even if freight was free, little money could be made by bringing cargoes to the region. Even more troubling, cash Far East prices are performing even worse, with physical C3 and C4 being called well below August CPs. PIRA believes that the recent glut may be partly due to the recent opening of the new lock system at the Panama Canal. Asia is now being barraged by USGC cargoes, arriving from both the east and west, and canal cargoes (with their significantly shorter voyages) are arriving before cargoes that set out earlier on the Horn of Africa route.
Crude stocks disappoint again, showing a 1.7 million barrel build as imports approach high of year at 8.44 MMB/D. Cushing crude stocks have largest build (1.1 million barrels) since early May. Reported product demand continued to improve, rising 150 MB/D on the week to a strong 20.8 MMB/D.
The prospect of new record-high storage in the U.S. and western Canada raises the risk for a “hard landing” for prices this season. While it appears unlikely that the market will once again probe sub-$2 prices, weakening fundamentals are at odds for sustained $3 prices — with the likelihood of a relapse looming ahead.
On-peak price levels and volatility soared in July amid strong cooling loads. Palo Verde on-peak prices averaged above $40/MWh, up more than $10/MWh from June. Mid-Columbia also gained $10/MWh to average in the low $30s. California hubs saw more modest ($5-6/MWH) gains to the high $30s. Bullish price action at the front of the curve has had relatively little impact on price forecasts with the exception of Palo Verde, where we believe a more bullish stance is justified, particularly for spring/summer 2017. In the near term, however, prices and heat rates are likely to ease as short-term weather forecasts indicate below-normal temperatures in the inland Southwest. In contrast, California heat rates are likely to increase as the call on gas generation reaches its annual peak in August/September amid ongoing gas storage constraints.
The S&P 500 was little changed on the week. Volatility remained low. Emerging market debt and high yield debt pulled back on the week. The dollar was generally weaker, particularly against the yen. It was noticeably stronger against the Russian ruble.
Cape demand is being boosted by improvements in 2Q16 Chinese steel industry numbers and the expansion in Guinean bauxite trade to China. Cape utilization is set to tighten notably in 2H17 and into 2018. Along with stronger bulker prices, PIRA expects a surge in freight rates in 2H17.
Emissions from aviation make up a small share of total global emissions, but they are growing quickly. The International Civil Aviation Organization is expected to unveil a program to keep post-2020 emissions at 2020 levels at its upcoming triennial assembly in September. PIRA estimates that, based on the most recent draft, it could cover at most 60-65% of total global aviation activity — requiring around 2 billion metric tons to be offset between 2021-2035. The main UNFCCC offsetting mechanism (CDM) should meet demand for offsets, but supply risks are related to the need to avoid double-counting of emissions reductions. Compliance costs are expected to make up a small share of jet fuel prices.
The week ending July 22, stocks draw to less than 21 million barrels for the first time in seven weeks. Production drops to 988 MB/D, falling from a record 1,029 MB/D the prior week.
Year-over-year price action similarities in corn have been hard to ignore. Last year, Dec. ’15 corn made a high of $4.5425 in early July. This year’s high of $4.49 was made in mid-June. Last year’s selloff was 97 cents from the highs. This year’s selloff, so far, has been 115.75 cents. Not a perfect match either timing-wise or price-wise, but close enough that a look at last August’s price action is warranted as July comes to a close.
Crude runs rose 81 MB/D on the week, reflecting the restart of Hokkaido. Refinery capacity continues to look underutilized, which suggests discretionary run cuts are occurring. Crude imports moved higher and crude stocks built 1.45 MMBbls. Finished product stocks built by 0.9 MMBbls, mostly due to a rise in naphtha. Refining margins remain very poor and should be inducing discretionary run cuts.
Although the forecast heat will likely limit August stockpiling for the first half of the month, less constructive fundamentals developing in the second half increases the risk of regional congestion. The prospect of new record-high storage in the U.S. and western Canada raises the risk for a “hard landing” for prices this season, with the month-on-month gains recorded in July likely reversing by September.
The emerging growth in Australian LNG output will make less and less room for other LNG supply to push its way into Asia from distant regions. Australia is still only producing 160-mmcm/d (up 90 mmcm/d year-on-year) and remains at a mere 51 % of the total production capacity (315-mmcm/d) it will have in place by 2019.
EIA just released its final monthly May 2016 (PSM) U.S. oil supply/demand data. May 2016 demand came in at 19.20 MMB/D, which showed growth of 85 MB/D, or 0.4%, versus year-ago. Gasoline, kero, and resid all outperformed. Distillate and “other” underperformed. Versus the weeklies, demand was revised lower by 1.1 MMB/D, with "other" revised lower by 627 MB/D, distillate lower by 257 MB/D, and gasoline lower by 213 MB/D. This comes on the heels of an 800 MB/D downward revision in the final April figures, when reported last month. Versus PIRA's Reference Case outlook, May is 450 MB/D less than forecast. End-May total commercial stocks stood at 1,384.1 MMBbls, which was 17.2 MMBbl higher than the preliminaries and 20 MMBbls higher than PIRA had assumed in its balances.
Thursday’s lighter-than-expected U.S. storage build, coupled with an anticipated single-digit addition to inventories for next Thursday’s report, should register as the lightest additions to working gas inventories for the remainder of the cooling season. These relatively low builds have helped propel the newly minted prompt contract beyond $2.90/MMBtu but bely weekly injections thereafter that could easily average 35-40 BCF, as cooling degree days seasonally decline in August.
In the face of sharply warmer-than-normal cooling conditions across most of the eastern and southern U.S., PIRA estimates that U.S. coal stocks are near flat year-on-year at 156 MMst. Though this remains above-normal target levels, some regions are drawing very close to normal seasonal target levels.
Global equities were modestly mixed on the week. Outside the U.S., the markets moved, on balance, higher. The international sectors were led by Japan and Europe, though Norway declined as oil prices weakened. In the U.S., the market was largely unchanged, though technology, retail, and housing moved noticeably higher. Energy lagged and declined on the week.
PIRA's latest update of Asian product demand shows a slowdown in growth from last month but still strong. The deceleration is concentrated in both China and India, but other Asian countries showed improvement, with either stronger growth or smaller year-on-year declines. Data actuals cover the three month period April-June for China, India, Korea, and Japan so this snapshot picks up the most timely data in the largest countries. Overall Asian demand growth slowed from 1.35 MMB/D in the June assessment to just over 1 MMB/D in the latest snapshot.
“New natural gas prices for industrial consumers and other business entities have been increased by 9% on average compared with the prices in June-July 2016, taking into account the price situation on the European natural gas market,” Naftogaz reports. The natural gas prices from the company’s resource are differentiated depending on the volume of purchases, payment conditions and the state of previous payments.
Despite weaker oil prices, the coal market rallied strongly this month. A sizeable drop in China’s domestic coal production from planned curtailments and wet weather saw its thermal coal imports increase again year-on-year in June, while exports supply from other major producing nations has been held in check largely by the weather. PIRA continues to believe that 2017 prices are undervalued despite the increase in pricing this month as stronger oil prices next year will push the curve higher.
Saudi Arabia's formula prices for September were just released. Prices were cut most aggressively to Asia, while U.S. customers saw cuts on the two lightest grades. Prices for delivery into Northern Europe were raised on all grades but the lightest, Arab Extra Light. The adjustments reflect weaker refining economics and narrower light product cracks, particularly in Asia, while the increase in Europe reflects a narrower discount on Urals vs. Dated Brent. The cut in the U.S. was in keeping with a narrowing of the LLS-Mars spread. The bottom line is that Saudi Arabia continues to respond to market conditions so to maintain its market share.
Seasonal gas demand will reach its low point in August, which will relieve some of the pressure on prompt prices and offer additional options for injecting gas on the Continent. Despite this, the run-up in gas prices has not turned away power sector gas demand, helped by strong coal and poor availability of the French nuclear fleet. Power production across France is up by 90% year-on-year in July. Breaking this down by gas grid, we are seeing a 60% rise in PEG-Nord power plant production and an amazing 340% rise in PEG-TRS production. This is particularly amazing given that southern French gas prices have been trading 7% higher, or €1.07/MWh, than their northern neighbors.
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.
With roughly 70 percent of global production coming from mature fields, well intervention projects are quickly becoming a huge fiscal and operational opportunity for GOM operators as the slowing in drilling operations forces operators to look for new and innovative ways to efficiently increase production from their existing well stock.
Numbers show that the average worldwide recovery factor for oil is only 35%. To understand the implications, it is worth pointing out that a mere 1% recovery increase would be the equivalent of an additional two-year supply. However, the GOM average recovery for subsea assets is just 22%, while Statoil routinely deliver over 50% recovery in the North Sea through subsea well intervention. There is no reason GOM operators cannot achieve similar results, especially considering that in North America, production from new wells costs virtually twice as much as production from existing fields.
However if the GOM industry can come together to deliver technology improvements, address skill shortages with experienced intervention departments and develop contract models and costing that suit the GOM market, there is every chance that the intervention market will grow rapidly in the near future.
On October 19-20, key industry figures will come together at the 3rd Annual Offshore Well Intervention Conference in Houston to share case studies on critical projects and latest technical innovations to equip you with practical experience to take advantage of this expanding market sector:
Other speakers include Wild Well Control, Interwell, Schlumberger, Halliburton and many others. They will be joined by over 160 delegates including representatives from Chevron, BHP Billiton, W&T Offshore, Total and Stone Energy. Check out the full conference agenda at http://tinyurl.com/ON-OWI-Program
If you have any feedback or questions regarding the event, please contact Sam Scarpa on This email address is being protected from spambots. You need JavaScript enabled to view it..
Exxon Mobil Corporation (NYSE: XOM) and InterOil Corporation (NYSE: IOC, POMSoX: IOC) announced an agreed transaction worth more than $2.5 billion, under which ExxonMobil will acquire all of the outstanding shares of InterOil (the ExxonMobil Transaction). “This agreement will enable ExxonMobil to create value for the shareholders of both companies and the people of Papua New Guinea,” said Rex W. Tillerson, chairman and chief executive officer of Exxon Mobil Corporation.
“InterOil’s resources will enhance ExxonMobil’s already successful business in Papua New Guinea and bolster the company’s strong position in liquefied natural gas.”
InterOil Chairman Chris Finlayson said, “Our board of directors thoroughly reviewed the ExxonMobil transaction and concluded that it delivers superior value to InterOil shareholders. They will also benefit from their interest in ExxonMobil’s diverse asset base and dividend stream.” Under the terms of the agreement with ExxonMobil, InterOil shareholders will receive:
When concluded, this transaction will give ExxonMobil access to InterOil’s resource base, which includes interests in six licenses in Papua New Guinea covering about four million acres, including PRL 15. The Elk-Antelope field in PRL 15 is the anchor field for the proposed Papua LNG project.
ExxonMobil’s more than 40 years of experience in the global LNG business enables it to efficiently link complex elements such as resource development, pipelines, liquefaction plants, shipping and regasification terminals, which it has demonstrated through the PNG LNG project, working closely with co-venturers, national, provincial and local governments, and local communities. ExxonMobil will bring to bear its industry-leading performance and strong commitment to excellence as it grows its business in Papua New Guinea.
The PNG LNG project, the first of its kind in the country, was developed by ExxonMobil in challenging conditions on budget and ahead of schedule and is now exceeding production design capacity, demonstrating the company’s leadership in project management and operations. ExxonMobil will work with co-venturers and the government to evaluate processing of gas from the Elk-Antelope field by expanding the PNG LNG project. This would take advantage of synergies offered by expansion of an existing project to realize time and cost reductions that would benefit the PNG Treasury, the government’s holding in Oil Search, other shareholders and landowners.
The ExxonMobil Transaction has been unanimously approved by the boards of both companies. The InterOil board unanimously recommends that InterOil shareholders approve the ExxonMobil Transaction.
The ExxonMobil Transaction will be implemented by way of a court-approved plan of arrangement under the Business Corporations Act (Yukon) and will require the approval of at least 66 2/3 percent of the votes cast by InterOil shareholders at a special meeting expected to take place in September, 2016.
In addition to InterOil shareholder and court approvals, the ExxonMobil Transaction is also subject to other customary conditions. Subject to obtaining the aforementioned approvals and satisfaction of closing conditions, the ExxonMobil Transaction is expected to close in September, 2016.
Further information regarding the transaction with ExxonMobil will be included in an information circular, which will be mailed to InterOil shareholders in due course. Copies of the key transaction documents for the ExxonMobil Transaction (being the arrangement agreement and the information circular) will be available online under InterOil’s corporate profile at www.sedar.com.
The InterOil board of directors, in consultation with its independent legal and financial advisors, determined that the ExxonMobil Transaction is superior to the previously announced transaction with Oil Search Limited (ASX:OSH, POMSoX: OSH) and so advised Oil Search on July 18, 2016. Immediately prior to entering into the arrangement agreement with ExxonMobil, InterOil terminated its previously announced arrangement agreement with Oil Search, and ExxonMobil is paying Oil Search the termination fee in accordance with the requirements of the Oil Search arrangement agreement on behalf of InterOil. The previously scheduled Special Meeting of Shareholders to vote for the approval of the Oil Search transaction has been cancelled.
Davis Polk & Wardwell LLP and Blake, Cassels & Graydon LLP served as legal advisers to ExxonMobil in relation to the ExxonMobil Transaction.
Credit Suisse (Australia) Limited, Morgan Stanley & Co. LLC and UBS served as financial advisers to InterOil in relation to the ExxonMobil Transaction, and Wachtell, Lipton, Rosen & Katz and Goodmans served as its legal advisers. Morgan Stanley & Co. LLC provided the InterOil board with a Fairness Opinion.
Bibby Offshore, a leading subsea services provider to the oil and gas industry, has announced a multimillion pound contract win with an independent UK-based E&P company, to provide air diving, and ROV inspection and construction services across five of its North Sea assets.
Olympic Ares. Photo credit: Bibby Offshore
The contract, which commenced in June 2016 and is to be completed by the end of the year, will see Bibby Offshore utilise several vessels including its construction support vessel Olympic Ares, diving support vessel Bibby Topaz and subsea support and construction vessel Olympic Bibby.
The vessel based engineering work involves Bibby Offshore installing a cathodic protection system on one platform, and performing air diving services to complete routine and non-routine inspection, repair and maintenance support at three other facilities. The company will also carry out routine pipeline inspection surveys at all five assets.
Fraser Moonie Chief Operating Officer at Bibby Offshore, said: “We have successfully completed multiple projects with this customer, with the latest contract demonstrating the continued confidence in our ability to deliver such complex workscopes.
“We place a huge emphasis on collaboration, which has led to us completing numerous high profile North Sea contracts throughout 2016, enabling our clients to achieve greater efficiency in this challenging market.”
As battle lines were drawn during Libya’s long civil war, Libya’s National Oil Company (NOC) was split between East and West, with opposing governments in Tripoli and Torbruk competing over oil revenues. Libya holds Africa’s largest proven reserves of crude, however, ongoing conflict has seriously disrupted oil production and exports – Libya currently produces just 350,000 barrels per day (b/d), significantly below the 1.65 million b/d produced prior to the unrest.
With oil revenues a key source of income, attacks on oil installations have been frequent by rival groups vying for power. A statement on July 2nd – announcing the reunification of the NOC – could indicate that recovery in the Libyan oil sector is on the horizon. An NOC spokesman, Mohamed Elharari, stated that reopening the blockaded export terminals at Es Sider, Ras Lanuf, Zawiya and Zueitina was a top priority for the company. The four ports have a total export capacity of 860,000 b/d, and would significantly boost global crude supplies. Any improvement to the situation could have a substantial impact on global markets – the opening of these terminals would likely lead to downward pressure on oil prices.
However, years of war have ravaged Libya’s oil infrastructure, the lack of maintenance represents a significant barrier to increased production in the near term. Both Es Sider and Ras Lanuf have been the focus of attacks, with Ras Lanuf’s storage tanks particularly badly damaged. Key to restarting exports will be Ibrahim Jathran, head of the Petroleum Facilities Guard (PFG) – who have been blockading Libya’s export terminals since 2013. Initially set up as a politically neutral force to protect Libya’s oil facilities during the civil war, the group have arguably acted as a private militia under Jathran’s leadership. A deal between Jathran and the Tripoli-based government on the 25th July was condemned by the chairman of the NOC, Mustafa Sanalla, who stated that the deal set a “terrible precedent” for further extortion by armed groups controlling oil facilities.
As the disagreements continue, it is clear without the support of the NOC, the prospect of ports reopening remains unlikely. The reunification of Libya’s NOC is certainly a positive step for recovery, however, tremendous barriers remain – in the short to medium term, oil is unlikely to flow at the levels seen in the days of Gaddafi.
Joel Hancock, Douglas-Westwood London
Anadarko Petroleum Corporation (NYSE: APC) has announced the election of David E. Constable to serve as an independent director of the company, effective immediately.
"David's experience as a public company CEO, as well as his project-management expertise and international business experience, make him a particularly good fit for our Board of Directors," said Anadarko Chairman, President and CEO Al Walker. "We are incredibly fortunate to have the benefit of David's global perspective in the Board room."
Constable, 54, is the former President and CEO of Sasol Limited, a leading international integrated energy and chemicals company based in South Africa. During his tenure at Sasol, Constable drove a comprehensive, group-wide change program, which culminated in the roll-out of the organization's new operating model and the related structures, processes and systems to ensure enhanced efficiencies and effectiveness. Prior to Sasol, Mr. Constable spent nearly 30 years at Fluor Corporation, where he served in various leadership positions, including as Group President of Operations. He currently serves as a director of ABB Ltd, and is a member of The Business Council and the World Economic Forum International Business Council. Mr. Constable holds a bachelor's degree in civil engineering from the University of Alberta, and graduated from the International Management Program at the Thunderbird School of Global Management, as well as the Advanced Management Program at the Wharton School at the University of Pennsylvania.
National Oilwell Varco, Inc. (NYSE: NOV) and GE Oil & Gas have announced the execution of an agreement to collaborate on delivering integrated solutions for Floating Production Storage and Offloading (FPSO) vessels. The agreement brings together the complementary product offerings and engineering capabilities from two industry leaders to optimize engineering design and supply comprehensive topside solutions for FPSO projects.
NOV engineers and manufactures advanced fluids pumping, treatment and processing systems; composite piping systems; cranes and deck machinery; and sophisticated, disconnectable turret mooring systems for FPSOs and related vessels. Additionally, NOV has successfully installed and commissioned equipment on hundreds of vessels in dozens of shipyards for the oil and gas drilling industry.
GE Oil & Gas engineers and manufactures advanced technology solutions for many of the world’s most complex power generation and gas compression projects. Also, with its Subsea Production Systems, GE Oil & Gas offers a comprehensive range of solutions including subsea trees, manifold & connection systems, and power & processing technology.
GE Oil & Gas may also involve other GE businesses in the collaboration with NOV.
The new, combined platform will provide industry-leading topside systems with repeatable deliveries, scale economies and standardized interfaces, which are expected to reduce risk of construction delays and cost overruns for deepwater oil and gas customers. Additionally, the new platform will incorporate digital solutions, which will optimize performance and provide predictive analytics through the life of the vessels, enabling FPSOs to efficiently adapt to a wider array of operating parameters.
The industrialized manufacturing supply chain, combined with digital solutions and global service and aftermarket capabilities, is expected to maximize life-cycle efficiencies and drive down the cost of offshore oilfield development.
NOV and GE Oil & Gas expect to complete joint engineering efforts and commence offering topside package solutions to the oil and gas industry by early 2017. “We can materially improve deepwater production economics by industrializing the supply chain and standardizing complex interfaces between our complementary topside equipment,” said Clay Williams, NOV’s Chairman, President and Chief Executive Officer. “For the past year we have quietly explored this new and better way to make floating production vessels and are excited about how this collaboration will change the industry and improve the economics of deepwater production development.”
“With this agreement, we are bringing together capabilities and expertise from GE Oil & Gas and NOV to better serve our customers and overcome oil and gas offshore industry challenges,” said Lorenzo Simonelli, President & CEO, GE Oil & Gas. “Digital solutions will add even more value to the agreement. Digitization has become not only a competitive differentiator but increasingly, a necessity to help our customers make their businesses stronger long-term.”
NOV and GE Oil & Gas remain independent suppliers of equipment, services and systems.
Claxton, an Acteon company, has been awarded a contract with Statoil to provide ‘rigless recovery’ of seven abandoned wells on the Huldra platform, located in the Norwegian Continental Shelf.
The contract was finalized in July 2016, and work is scheduled to commence in December 2016 with the project due for completion within 21 days. Claxton is responsible for a full scope of decommissioning work including project planning, severance, and full multiple string recovery.
Photo credit: Statoil
Laura Claxton, managing director, Claxton, said, “Claxton performed the world’s first rigless platform well abandonment campaign on the Esmond, Forbes and Gordon field in the North Sea in 1995 and have completed more than 280 cutting and recovery projects since.
“This experience allows us now to provide the most comprehensive decommissioning packages for our clients. Being awarded this contract with Statoil reinforces our leading position in the decommissioning market and demonstrates that clients value our experience, strategic technical approach and capabilities.”
Conductor and casing severance for the Huldra project will be performed using the latest evolution Claxton recovery tower and its abrasive cutting system ‘SABRE’. The SABRE unit and all ancillary equipment are NORSOK compliant to Z-015, with the recovery tower having a safe working load of 300Te with a modular system footprint design that minimises rig-up time and complexity.
Rigless platform well abandonment is just one of the many services Claxton can offer to reduce the cost of your decommissioning project. Learn more about Claxton’s decommissioning services.
As battle lines were drawn during Libya’s long civil war, Libya’s National Oil Company (NOC) was split between East and West, with opposing governments in Tripoli and Torbruk competing over oil revenues. Libya holds Africa’s largest proven reserves of crude, however, ongoing conflict has seriously disrupted oil production and exports – Libya currently produces just 350,000 barrels per day (b/d), significantly below the 1.65 million b/d produced prior to the unrest.
With oil revenues a key source of income, attacks on oil installations have been frequent by rival groups vying for power. A statement on July 2nd – announcing the reunification of the NOC – could indicate that recovery in the Libyan oil sector is on the horizon. An NOC spokesman, Mohamed Elharari, stated that reopening the blockaded export terminals at Es Sider, Ras Lanuf, Zawiya and Zueitina was a top priority for the company. The four ports have a total export capacity of 860,000 b/d, and would significantly boost global crude supplies. Any improvement to the situation could have a substantial impact on global markets – the opening of these terminals would likely lead to downward pressure on oil prices.
However, years of war have ravaged Libya’s oil infrastructure, the lack of maintenance represents a significant barrier to increased production in the near term. Both Es Sider and Ras Lanuf have been the focus of attacks, with Ras Lanuf’s storage tanks particularly badly damaged. Key to restarting exports will be Ibrahim Jathran, head of the Petroleum Facilities Guard (PFG) – who have been blockading Libya’s export terminals since 2013. Initially set up as a politically neutral force to protect Libya’s oil facilities during the civil war, the group have arguably acted as a private militia under Jathran’s leadership. A deal between Jathran and the Tripoli-based government on the 25th July was condemned by the chairman of the NOC, Mustafa Sanalla, who stated that the deal set a “terrible precedent” for further extortion by armed groups controlling oil facilities.
As the disagreements continue, it is clear without the support of the NOC, the prospect of ports reopening remains unlikely. The reunification of Libya’s NOC is certainly a positive step for recovery, however, tremendous barriers remain – in the short to medium term, oil is unlikely to flow at the levels seen in the days of Gaddafi.
Joel Hancock, Douglas-Westwood London
API President and CEO Jack Gerard highlighted the benefits that come from increased oil and natural gas production after Democratic Presidential Nominee Hillary Clinton delivered her remarks at the party’s convention today.
“The production of energy resources holds great promise for our nation when it comes to creating jobs and benefitting consumers. It’s estimated that women and minorities will fill an exceptional number of the nearly 1.9 million jobs projected in the oil, natural gas, and petrochemical industries by 2035. And last year, American families saw higher household disposable income from increased energy production,” said Gerard. “Americans understand that pro-growth energy policies will create jobs and shrink the income inequality gap and it’s up to our nation’s leaders to follow the will of the American people.”
A recent poll found that 77 percent of voters, including 94 percent (R), 73 percent (I), and 64 percent (D), strongly support increased production of oil and natural gas resources located here in the U.S. and 69 percent of voters, including 86 percent (R), 69 percent (I), and 57 percent (D), are more likely to support candidates who want to produce more of our domestic oil and natural gas resources. The same poll found that 71 percent of voters, including 83 percent (R), 67 percent (I), and 60 percent (D), oppose legislation that could potentially raise energy costs on American consumers.
API is the only national trade association representing all facets of the oil and natural gas industry, which supports 9.8 million U.S. jobs and 8 percent of the U.S. economy. API’s more than 650 members include large integrated companies, as well as exploration and production, refining, marketing, pipeline, and marine businesses, and service and supply firms. They provide most of the nation’s energy and are backed by a growing grassroots movement of more than 30 million Americans.
McDermott International, Inc. (NYSE:MDR) and Nakilat-Keppel Offshore Marine (N-KOM), announces a Memorandum of Understanding for an exclusive cooperation agreement to pursue offshore engineering, procurement, construction and installation (EPCI) projects within Qatari waters.
Under the five-year agreement, McDermott and N-KOM, the joint venture shipyard between Qatar’s Nakilat and Keppel Offshore & Marine, will develop an integrated approach to projects in Qatar by leveraging McDermott’s proven track record in offshore EPCI projects and N-KOM’s world-class ship repair and offshore construction facility at the Erhama Bin Jaber Al Jalahma Shipyard, strategically located in Qatar. McDermott will serve as prime contractor to customers and lead engineering with its teams based in Dubai as well as its Global Engineering Center in Chennai, India where necessary. McDermott will also lead procurement and installation with vessels mobilized from its global marine fleet. N-KOM will serve as subcontractor and perform fabrication from its Qatar facility.
“Through this exclusive agreement, McDermott and Keppel build upon our long-standing relationship to combine each company’s strengths to benefit our clients in Qatar and increase Qatari local content,” said Linh Austin, McDermott’s Vice President, Middle East. “With both our Dubai- and Saudi-based facilities, McDermott is well positioned to address the continued growth for the entire Middle East market. And now with this cooperative agreement, we have an even higher level of capacity and availability.”
Qatar continues to be a key growth region for McDermott. Over the past 20 years, McDermott has fabricated more than 80% of the North Field gas infrastructure.
“McDermott has been involved in all major offshore developments in Qatar over the last 50 years and we look forward to furthering our strong working relationships,” added Austin.
“We are pleased to partner with McDermott, one of the leading EPCI contractors in this region, to enhance our standing as a premier marine and offshore service provider in Qatar,” said Eng. Abdullah Fadhalah Al Sulaiti, Managing Director of Nakilat. “N-KOM has delivered several offshore construction projects, including a newly built liftboat. This agreement will add value to our services in this area to better support the local oil and gas industry in Qatar.”
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