HARKAND has successfully completed the $10.5million (USD) upgrade of its Gulf of Mexico based dive support vessel (DSV) Swordfish. Originally built in 2007, the Swordfish is the youngest DSV in this region and has been upgraded to the highest safety standards in the offshore industry.

The fully International Marine Contractors Association (IMCA) compliant, ABS classed, 104 m long, DP2 DSV features a newly upgraded 15-man saturation diving system with a three-man bell along with a new 165’ surface diving system.

The vessel comes fitted with a new build 18-man self-propelled hyperbaric lifeboat (SPHL) for evacuation of the divers under saturation in case of an emergency. This SPHL can be coupled with a newly built and dedicated portable hyperbaric rescue facility (HRF) to ensure safe decompression of divers.

Following the upgrade work being carried out at the Port of Galveston, Mike Brown general manager of diving operations for North America and Africa, said: “Our commitment to establish industry standard in safety is exemplified by this recent investment to upgrade the Swordfish ensuring that the vessel not only meets but surpasses the required IMCA safety standards.

“The Swordfish with its new surface diving system, the upgraded saturation diving system, dual 70 and 150 Te active heave compensated (AHC) cranes, heavy duty work-class XLS ROV and its own dedicated SPHL and HRF will be the most advanced DSV in this region and enable us to tackle the most challenging IRM and light construction projects for any operator.“ Harkand provides offshore vessels, ROVs, diving, survey services, project management and engineering to the oil and gas and renewables industries. Headquartered in London with operations bases in Aberdeen, Houston, Mexico Nigeria and Ghana, Harkand aims to be the leading subsea IRM and light construction contractor globally.

Wood Group has been awarded a three-year offshore engineering blanket order by PEMEX Procurement International for field development in Mexico’s Gulf of Mexico waters. The agreement, valued at up to US$28 million, encompasses deepwater and complex shallow water concept and basic engineering, and owner engineer services.

Work will be performed by Wood Group Kenny and Wood Group Mustang and will comprise field development planning and engineering of topsides facilities; subsea umbilicals, risers and flowlines (SURF); and floating systems. Services will be performed for the following potential oil and gas field developments:

“Mexico’s energy reform is leading to significant development of the country’s oil & gas industry and Wood Group offers PEMEX unparalleled Gulf of Mexico expertise,” stated Robin Watson, chief operating officer of Wood Group. “Wood Group Mustang and Wood Group Kenny are the leaders in Gulf of Mexico facilities design and SURF, respectively. Their integrated solution will include best practices for offshore and complex facilities that will help to expand Mexico’s offshore capabilities.”

Ceona, SURF contractor with heavy subsea construction capabilities, regrets to announce that John Smith, Chairman of the company’s board, has stepped down with immediate effect due to ill-health.

A well-known industry figure, Mr. Smith has been involved in the oil & gas sector for more than 30 years and has been pivotal in overseeing the growth of Ceona since its inception in 2012.

Mark Preece, Ceona’s Chief Executive Officer (CEO), said: “John has been with Ceona since we started down the path to building the Ceona Amazon and his expertise has been vital in supporting the company to grow into the international organization that it is today.

“John is highly respected and everyone at Ceona is extremely sorry to see him leave. I would like to take this opportunity to thank John for the very significant contributions he has made to our organization.”

Mr. Smith, a chartered mechanical engineer with a degree from Glasgow University, worked for 20 years for engineering companies owned by Brown & Root and headed their Norwegian and Australian businesses.

After taking on responsibility for the organization’s subsea businesses, Mr. Smith led the strategic process that formed Subsea 7, serving as the inaugural CEO and on the Board of the company until June 2007 when he joined Clough as CEO. There, he led a successful turnaround before handing over to his successor and joining Ceona in the initial stages of its growth strategy.

Mr. Smith is a past president of International Marine Contractors Association (IMCA), the international marine contractors association and was also chairman of Benthic Geotech and Competentia.

New facility will meet increasing demand for operational excellence training in hazardous industries

Petrotechnics, the enterprise operations excellence management solutions provider, today celebrates the opening of its state-of-the-art competency and training centre. Located at the company’s Aberdeen headquarters, the new facility will address changing demands for operations excellence training in hazardous industries, including oil and gas, chemical and rail.

To date, over 70,000 people have been through Petrotechnics’ training programmes, with more than 4,000 delegates enrolled in the last year alone. The new centre will offer increased capacity to meet growing demand for a range of courses, including those focusing Petrotechnics’ leading software platform, Proscient.

The centre’s new classrooms feature state-of-the-art interactive facilities and a broader range of training programmes, from traditional classroom training to “self-paced” and “on-demand” options for online learning.

“Petrotechnics has been delivering training for over 25 years and during that time we have experienced a significant shift in industry demands from simple control of work to integrated operational risk and operations management best practices. Our investment in this new facility is part of our ongoing commitment to maintaining quality competence practices and addressing complex training needs across hazardous industries,” says Iain Mackay, Executive Vice President, Petrotechnics.

Petrotechnics’ team of 26 veteran trainers and coaches have a combined industry experience of 460 years. Their global expertise and knowledge is unrivalled in helping companies in hazardous industries improve how they manage risk, hazards and operational safety. Petrotechnics’ trainers have supported over 48 major projects with courses delivered in 24 countries on every continent.

“Hazardous industries have long understood the value of having a competent, trained workforce, and its contribution to productivity and safety,” adds John Broomfield, Training Operations Manager, Petrotechnics.

“However, the means of achieving and maintaining a competent workforce have changed, and we have seen a steady evolution in industry training requirements, leading us to enhance our facilities and courses to meet this demand.”

Reflex Marine continues to expand its global network of Accredited Service Centers with the addition of maritime safety company, Wiltrading, located in Australia. Wiltrading has been representing Reflex Marine as a regional partner for over ten years. The company has now achieved Accredited Service Centre status, which is the most comprehensive level of accreditation awarded by Reflex Marine.

NYC-based PIRA Energy Group reports that crude prices plunged in July, with the WTI price averaging just over $50/Bbl. In the U.S., stocks are flat but excess widens. In Japan, crude runs moved higher, with still higher crude stocks. Specifically, PIRA’s analysis of the oil market fundamentals has revealed the following:

North American Midcontinent Oil Forecast

Crude prices plunged in July, with the WTI price averaging just over $50/Bbl – down $9/Bbl from June. Canadian prices fell even more, some $12-15/Bbl. In early August, prices were continuing to slide, with WTI falling to the mid-$40s. Heavy Canadian grades have fallen below $30/Bbl, implying bitumen values approaching $20/Bbl.

U.S. Stocks Flat but Excess Widens

This past week's crude stock draw offset a product build leaving inventories flat for the week. Year-on-year the stock excess widened to 153 million barrels, up 8 million barrels on the week. The largest portion and bulk of the excess is in crude while the smallest excess is in gasoline.

Japanese Crude Runs Move Higher, with Still Higher Crude Stocks

Crude runs surged as maintenance wound down and storm impacts faded. Crude imports remained high and stocks built despite the run increase. Finished product stocks drew slightly, mostly on lower naphtha inventory and a slight draw on gasoline. Finished product demands were, on balance, higher. The indicative refining margin has come well off its June peak and continues to soften.

Aramco Differential Adjustments for September — Clearly Not Incentivizing Liftings

Saudi Arabia's formula prices for September were just released. The adjustments indicate no effort to incentivize increased liftings, even though there will be more avails as summer domestic crude burn begins to ease. Differentials to Asia were raised, Europe cut, and the U.S. were raised for the lightest and heavies grades. The Asian increase was against a backdrop of weaker refining margins and an eroding Saudi advantage against competing African crude for Asian refiners.

Asian LPG Prices Plumb New Lows

Propane futures in the Far East tumbled to $406/MT, the lowest price since March 2009. Saudi CP futures, instruments designed to hedge and speculate on the future direction of contract prices set by Aramco, fell to $326/MT – the lowest level since contract inception in Jan 2009.

Ethanol Prices and Margins Increase

Most U.S. ethanol prices managed small gains the week ending July 31 as production hit a ten-week low. Manufacturing margins improved for the second straight week because of lower corn costs.

Ethanol Output Reaches 11 Week Low

The U.S. ethanol industry reached several extremes the week ending July 31, with ethanol stocks dropping to a 2015-low and ethanol-blended gasoline production climbing to a record high.

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.

Hoover Container Solutions (Hoover), a global provider of chemical tanks, cargo carrying units and related products and services, has announced the opening of its new service facility in Brazil. The wash line facility allows Hoover to provide expanded cleaning services while handling all intermediate bulk containers (IBCs), ISO tanks and offshore equipment destined for oil and gas platforms, mining sites, islands and supply bases in the region.

Hoover’s new wash line facility is equipped with experienced staff who are licensed to clean a wide variety of hazardous and non-hazardous materials. The site hosts a full range of tank cleaning services including: easy clean (steam or flush), moderate clean (caustic or detergent), difficult clean (boosted caustic or pre-solve), exterior clean with internal process or exterior clean only.

The high power wash system generates 1,500 psi of pressure used for the washing and rinsing of fluid storage or transportation containers. The closed-loop system, designed to recycle wash water, allows for minimal waste water disposal while maximizing customer savings. Steam is used to aid in accelerating the cleaning process and in improving the cleaning power of the detergent. During the final stage of cleaning processes, the wash system uses a fresh water rinse that has been pumped through cartridge filters to thoroughly cleanse containers.

The Brazil facility is capable of washing four 5,000 liter containers or four 1,500 liter containers at once with a total cleansing time of 32 and 20 minutes, respectively, per complete cycle—interior, exterior and drying.

“The addition of this service facility allows us to efficiently and safely clean a wide variety of products while minimizing costly downtime,” said Arash Hassanian, vice president of Global Sales and Marketing for Hoover. “Hoover is committed to providing our customers with high quality, cost effective and environmentally conscientious solutions that meet industry standards and improve customer performance.”

A new Wood Mackenzie study commissioned by the American Petroleum Institute finds that pro-development regulations for oil and natural gas development in the United States could dramatically improve the nation’s economic prospects for the foreseeable future. The study contends that nationally, by 2035, pro energy policies could yield an additional:

What could these findings mean to Florida? In the blog post included below, online on API’s blog “EnergyTomorrow.org,” we explore the oil and natural gas industry’s intrinsic value to Florida and detail how allowing crude oil exports can bode well for Floridians.

Energizing Florida

Our series highlighting the economic and jobs impact of energy in each of the 50 states continues today with Florida. We started our focus on the state level with Virginia on June 29. All information covered in this series can be found online here, arranged on an interactive map of the United States. State-specific information across the country will be populated on this map as the series continues.

As we can see with Florida, the energy impacts of the states individually combine to form energy’s national economic and jobs picture: 9.8 million jobs supported and $1.2 trillion in value added.

Click here to bring up a two-page snapshot of energy’s benefits to Florida.

The top-line numbers for Florida: more than 286,000 jobs supported statewide, according to a PwC study issued in 2013; over $23 billion added to the state economy; $13 billion contributed to the state’s labor income.

Page 2 of the document highlights the promising economic opportunities for Floridians if crude oil exports are allowed. If federal restrictions on U.S. crude exports are lifted Florida could add up to 10,736 jobs and more than one billion dollars to the state economy in 2020.

We’ve now seen reports -- from Columbia University, IHS, ICF, Brookings, the Aspen Institute, the Government Accountability Office, the Congressional Budget Office, the Energy Information Administration (EIA) and others – all pointing to the same conclusions: Blocking trade in crude oil harms consumers, it harms the economy, and it undermines America’s role as a global leader.

Crude oil exports would put downward pressure on crude on U.S. gasoline prices. U.S. weighted average petroleum product prices are expected to decline as much as 2.3 cents per gallon 2015–2035 when U.S. crude exports are allowed. The greatest potential annual decline is 3.8 cents per gallon in 2017. These price decreases for gasoline, heating oil and diesel could save American consumers up to $5.8 billion per year, on average, over the 2015–2035 period.

When added up across all of the states that can benefit from exports, nationally, LNG and crude exports could significantly reduce our trade deficit, increase government revenues, grow the economy, and support millions of U.S. jobs in engineering, manufacturing, construction, and facility operations.

Energy is critically important to Florida, serving as a key engine for the state economy – expanding job opportunities and offering the hope of prosperity to individual Floridians and their families.

The future benefits of energy for Florida – and the rest of the country – largely depend on national decisions on the country’s energy path. A new Wood Mackenzie study contrasts the benefits that a set of pro-development policies could have on energy supplies, jobs, the economy and American households with the likely negative effects on energy of regulatory constrained policies. The key comparisons are found on the first page of the linked document.

Energy is essential for all facets of our daily lives, from powering national, state and local economies to powering the family vehicle. Safe, responsible development of domestic oil and natural gas resources is linked to individual prosperity, energy security and basic liberties.

The renowned French research vessel, Marion Dufresne II left Damen Shiprepair Dunkerque (part of Damen Shiprepair & Conversion) in northern France on 28 July having recently undergone sea trials and a complete renovation. Delivered on time, the oceanographic research vessel set sail for the Port of La Réunion where she will resume her logistic and scientific journey to the French Southern and Antarctic Lands.

“The excellent cooperation between the yard and the vessel’s crew was important in this project’s successful planning, coordination and execution. We rebuilt a large part of the vessel within 4 months to extend her life by 20 years. The client was satisfied with our performance, cooperation and the end result,” explains Head of Marketing & Sales at Damen Shiprepair Dunkerque, Khalil Benjelloul.

Mr. Benjelloul sums up the work carried out by the yard. “We replaced the vessel’s most important scientific apparatus, the multi-beam sonar. We scrapped the existing equipment, rebuilt the hull and installed a new gondola and control room. Furthermore we completely renewed the ILOT capstan, a system used to take sea water samples, and installed new equipment. The hull has been blasted and repainted as well as some of the ballast tanks. The vessel’s accommodation areas have been redone in cooperation with the client’s subcontractor, this included laboratory facilities used by IPEV scientists. Marion Dufresne II can accommodate 114 passengers or scientific researchers and 46 crew.”

The multi-purpose vessel owned by French administration “Les Terres australes et antarctiques françaises” (TAAF) and managed by CMA CGM, supplies French southern islands 4 months a year, and carries out oceanographic research 217 days per year under the responsibility of the Institut Polaire Paul-Emile Victor (IPEV). Operating out of the Port of La Réunion, the vessel transports passengers and supplies to the French islands of the Indian Ocean and performs scientific works in all ocean conditions, but for iced covered. Marion Dufresne II is now returning to the French Southern and Antarctic Lands to continue her logistic work and scientific research.

Besides her research and scientific capabilities, this multi-purpose vessel has a heli-deck and can be used as a supply vessel to transport containers and fuel to remote areas.

The client selected Damen Shiprepair & Conversion following a competitive tendering process. After careful consideration of the vessel’s requirements, Damen decided to have the Dunkirk yard in northern France undertake the project.

After almost eight decades of Pemex monopoly, the Mexican energy sector is entering a new era of foreign oil company participation. A decade of steady decline in domestic oil & gas production has incentivized the Mexican government to lift the regulations and allow international companies to start developing offshore projects in Mexican waters. The government is keen to attract private investors to its energy sector with the hope of kick starting its struggling economy.

Over the last decade Mexico’s oil production decreased at a compound annual growth rate (CAGR) of -3.3%. This was driven by a drop in drilling activity, which declined at a CAGR of -2.7% 2005-2014. In spite of the country’s offshore potential, DW continues to take a conservative view on the country’s future oil production. Whilst the drilling activity is expected to soar over the balance of the decade at a CAGR of 13.3% (as a function of Pemex offshore projects that are expected to come on stream in next years) Mexican production is expected to grow only at a modest CAGR of 0.3% through to 2020. Operating fields are mature and additional drilling activity is only expected to offset the loss in production.

Despite the low oil price environment, the government has remained committed to auctioning its offshore blocks, keen to drive international investment. Recent tenders failed to meet government expectations; out of 14 shallow water exploration blocks only 2 were awarded to a consortium of Sierra Oil & Gas, Talos Energy and Premier Oil, leaving the pre-qualified majors without new acreage despite previous recorded successes and infrastructure already in place.

Following a disappointing result in the first upstream tender for shallow water exploration, lessons have been learned. Raising the domestic flagging oil output is President Peña Nieto’s key economic target. The Mexican government will need to revise its expectations if it is to see more success for its subsequent auctions. Although it has been reported that the contract terms and requirements for future tenders have been improved, it remains to be seen if those are attractive enough for operators to splash their exploration budgets in Mexican offshore projects.

www.douglas-westwood.com

Crowley Maritime Corp.’s global ship management group continues the support work it is providing the U.S. Government with the announcement today of a new technical management contract for six Military Sealift Command (MSC) Maritime Prepositioning Ships (MPS). Services provided by Crowley will be full turnkey operation and management of the fleet, including crewing, and scheduled and unscheduled repair and dry-docking. The turnover phase will begin in late September.

“Crowley is honored to have been selected to provide technical management for such an elite government fleet,” said Crowley’s Mike Golonka, vice president, government services. “This contract is a perfect fit for Crowley, and would not be possible without the hard work and determination of our remarkable government team and the tremendous support we received from MSC.”

These ships are used to preposition U.S. Marine Corps vehicles, equipment and ammunition throughout the world. Prepositioned ships in each squadron have sufficient equipment, supplies and ammunition to support about 17,000 personnel for 30 days, and are self-sustaining with cranes that enable them to unload their own cargo.

The Crowley contract covers five of MSC’s 14 Bobo Class ships – including the MV 2nd Lt. John P. Bobo, MV Pfc. Dewayne T. Williams, MV 1st Lt. Jack Lummus, MC Sgt. William R. Button and MV 1st Lt. Baldomero Lopez – and the USNS Gunnery Sgt. Fred W. Stockham.

“Vessels in the Bobo Class are named after recipients of America’s highest military recognition, the Medal of Honor,” said Crowley’s Sam Ailes, program manager. “It’s humbling and rewarding to provide service to this distinguished fleet as it fulfills its military duties. This is yet another critical government program and we realize what a privilege it is to serve it.”

The Bobo Class is named in recognition of USNS 2nd Lt. John P. Bobo, a Vietnam War hero who was killed while saving the lives of his fellow marines during an ambush in 1966. He was posthumously awarded the Medal of Honor.

Crowley’s ship management group provides all phases of commercial ship management, along with full technical management and government contracting.

Subsea 7 S.A. (Oslo Børs: SUBC, ADR: SUBCY) has announced the award of a contract with a value of approximately USD 500 million by BP, and partner DEA, for the development of the Taurus and Libra subsea fields offshore Alexandria, Egypt. The contract is the first phase of Egypt's West Nile Delta project where field development will be at depths of approximately 800 meters.

3sun Group, specialist provider of products and services to the global energy industry, has further enhanced its offering by launching a fully comprehensive asset integrity service.

The Group’s in-house capabilities for working at height support the repair, maintenance and decommissioning of all on and offshore structures, both in oil and gas and renewables sectors. Skilled IRATA approved rope access technicians are utilised for work including welding, pipe and plate non-destructive testing, painting, crane inspection, blade repair and fabric maintenance.

The service also covers detailed offshore surveys, risk assessments and design, through to the implementation of structural and piping modifications and the decommissioning of redundant equipment.

 A 3sun technician working at height on a wind turbine

Commenting on the importance of asset integrity, Graham Hacon, CEO, said: “Safe operation of ageing assets is one of the biggest challenges facing the energy industry, particularly in the North Sea, and even more so in the current climate when identifying streamlined and cost effective solutions is key. A well-managed asset integrity program can play a major role in extending the life cycle of fundamental assets.”

Mr. Hacon added: “Assets can deteriorate in many ways through corrosion, structural fatigue, impact damage and general wear and tear. Our integrity management team works with operators to ensure assets are effectively maintained to be safe, reliable and efficient across their life cycle.

“With our recent acquisition of AID Industrial, we can now offer complementary capabilities to the renewable energy and oil and gas sectors, allowing us to provide a full turnkey solution to our customers. Our services are adaptable as well as comprehensive and allow us to offer bespoke solutions for projects of any scale and specification.”

Since its inception in 2007, 3sun Group has grown rapidly to now employ over 350 people across six divisions, and has earned a global reputation for resolving some of the key energy engineering challenges facing the energy sector.

Its recent acquisition of AID Industrial, specialist PPE provider and expert in Industrial Rope Access, Work at Height and Global Wind Organization safety courses, marked a successful first quarter of the year for the Group. This follows major contract wins, a Top 20 position on The Sunday Times HSBC International Track 200 league table and a £10million investment from the Business Growth Fund last year.

During Offshore Europe, a panel of leading international industry experts will discuss the preconceived perceptions that students and graduates have of a career in oil and gas, and how they differ from the experiences of those operating in the sector.

Hosted by the Society of Petroleum Engineers (SPE) Aberdeen Section’s Young Professional Committee, the panel will take place during the final day of Offshore Europe, Friday 11 September, at the Aberdeen Exhibition and Conference Centre and aims to inspire the next generation to pursue a career in the oil and gas sector, whilst also motivating young professionals to consider new opportunities within the industry.

SPE President and director general of Statoil Mexico, Helge Hove Haldorsen, will lead the panel discussion. Joining him will be David White, senior technology adviser at Schlumberger, Rod Christie, CEO of subsea systems and drilling at GE Oil & Gas, Shona Cormack, vice-principal and pro-vice chancellor of Robert Gordon University, and Bob Greenwood, partner and head of oil and gas practice at Odgers Berndtson.

Shankar Bhukya, SPE Aberdeen Chairman, said: “The ever-changing nature of the oil and gas industry has been particularly palpable of late and it is important, more now than ever, that leading professionals come together to share with today’s students and graduates their experiences of the industry and the vast opportunities available.

“With continuous technological advancement and fields including enhanced oil recovery and decommissioning growing in importance each day, particularly in the UKCS, talented individuals are in high demand and there are still excellent career prospects out there for them. At SPE Aberdeen, we continue to look at new ways to engage and enthuse the next generation and this event represents a fantastic platform upon which to demonstrate the potential a career in oil and gas can offer.

“The pre-event online poll, as well as the question and answer section of the panel discussion offers delegates the chance to voice their opinions and have their concerns addressed by leading professionals who have already made their mark on the industry. Together, we can convey the message that the oil and gas industry is still thriving and should not be disregarded by the new generation. ”

SPE Aberdeen has developed an online poll to gather the opinions of students, graduates and young professionals. The results will be presented during the seminar and will form part of the discussion. If you would like to complete the poll please visit - https://www.surveymonkey.com/s/W99XVSB.

Ashtead’s Subsea Technology Training Academy has secured Continuing Professional Development (CPD) accreditation.

CPD accredited courses include; Introduction to Offshore Survey Equipment, ROV Sensors and Multiplexors, Acoustic Positioning Systems and Pipe and Cable Tracking.

In addition to these regular courses, Ashtead Technology is able to design tailor-made training to meet specific needs of individual customers.

Tim Sheehan, commercial director at Ashtead, said: “In today’s environment and with increasingly sophisticated kit, it is crucial that companies have the skills and competence to install, configure and maintain this equipment. Maximising returns and minimising costs are priorities right across the industry and we are able to equip those on our courses with the knowledge to make best use of the tools available to them as the industry tackles increasingly complex projects in deeper and more hostile environments.

“We have seen significant demand since we launched the training academy with interest from some of the biggest names in the industry. Gaining CPD certification means that clients can be assured our courses will deliver the competence and confidence they need.”

Since its launch in October 2014, Ashtead’s Training Academy has delivered courses to companies including Shell, Subsea 7, Saipem, Bibby Offshore, Harkand, DOF, Nautronix, Canyon and UTEC Survey with delegates from both the UK and overseas.

The level 1 and 2 courses available at Ashtead Technology’s purpose-built facility cover the basics and the more complex functioning of subsea survey equipment and are designed in accordance with SQA guidelines. The certification also means the courses can support progression towards Chartered status.

Mr. Sheehan added: “Although the training centre is relatively young, it is already well-recognised in the industry. The courses we deliver are in line with recognised industry standard and involve a high percentage of practical work to deliver competence which can be measured.”

BG Group (LSE: BG.L), a world leader in exploration and LNG has announced first oil from the Cidade de Itaguaí floating, production, storage and offloading (FPSO) vessel, the sixth unit to start production across the Group's significant discoveries in the Santos Basin, offshore Brazil. The FPSO will produce from the Iracema North area of the Lula field in the Petrobras-operated BM-S-11 block.

Anchored 240 km off the coast of Rio de Janeiro, the Cidade de Itaguaí is approximately 2 220 meters above the ocean floor. This is the second leased FPSO deployed on the Iracema development and will double the gross production capacity to 300 thousand barrels of oil per day and 16 million cubic meters of natural gas per day from the area. The FPSO will also be able to store 1.6 million barrels of oil.

BG Group has a 25% interest in Block BM-S-11 (Petróleo Brasileiro S.A., operator, 65% and Petrogal Brasil S.A., 10%). BG Group also has a 30% interest in Block BM-S-9 (Petróleo Brasileiro S.A., operator, 45% and Repsol Sinopec Brasil 25%).