Oceaneering International, Inc. (NYSE: OII) announced that Steven A. Webster (photo) has been appointed to serve on its Board of Directors, effective today.

Mr. Webster is a director and Chairman of Carrizo Oil & Gas, Inc. and Basic Energy Services, Inc. and serves as a director on the boards of other energy-related companies. He is also Co-Managing Partner and Co-CEO of Avista Capital Partners LP, a private equity firm, in charge of energy investments. Throughout his 40-year business career, Mr. Webster has been active in the energy industry, notably in the exploration and production and service sectors.

Mr. Webster has a Bachelor's degree in Industrial Management and an honorary Doctorate degree in Management from Purdue University. He also holds a Master of Business Administration degree from the Harvard Business School, where he was a Baker Scholar.

Mr. Webster is joining Oceaneering's Board following the decision by Jerold J. DesRoche to retire from the Board, effective at Oceaneering's next Annual Meeting of Shareholders in May 2015.

Ceona, SURF contractor with heavy subsea construction capabilities, has secured a Letter of Intent (LOI) for the company's flagship field development vessel, the Ceona Amazon. This will be Ceona's first rigid pipelay project in the Gulf of Mexico for well-established US independent oil & gas operator, Walter Oil & Gas Corporation.

The Ceona Amazon will be deployed for the Coelacanth Export Pipelines project with the scope of work encompassing the installation of an oil and a gas export line tying the new Coelacanth Platform into existing pipeline infrastructure. Each 10" line will be approximately 11 miles, totaling 22.6 miles (approximately 36 km). The pipelines will each be terminated by two pipeline end termination (PLETs) structures installed by the Amazon. All work will be undertaken in one single mobilization.

Project Management and Engineering work has started in Ceona's Houston office with support from the corporate offices in London and Aberdeen.

Mark Preece, Ceona's Executive VP Commercial and Business Development, said: "We are extremely pleased that the Amazon has secured her first contract, with final vessel delivery on time and within budget. This will also be her first rigid pipelay project and we look forward to demonstrating the Amazon's capabilities in this area.

"As such, we would like to thank Walter Oil & Gas for having such confidence in the Amazon and her distinctive, cost-effective capabilities which is a huge endorsement of Ceona's vision for designing a vessel that takes subsea construction and installation into a new era. The project will be managed from Ceona's Houston office and the team will ensure Walter Oil & Gas is highly satisfied by the quality of our project execution and vessel performance."

Janelle Pence, Ceona's VP Commercial Americas, said: "The award of Coelacanth is a milestone for Ceona and fully demonstrates our commitment to the region. We look forward to working closely with Walter Oil & Gas to deliver a safe and successful project."

Shipbuilding specialist Lloyd Werft successfully delivered the Ceona Amazon less than two years after the letter of intent for its construction was signed. Last month, the Amazon was equipped with her inclined multi-lay VLS with a top tension of 600te, and with two 400te Active Heave Compensated (AHC) masthead cranes able to work in tandem. The two 18m (59 ft) diameter wheels on the top tower and deck are also being installed. All deck installation work has been carried out at the Huisman yard in the Netherlands.

The Ceona Amazon will represent the second new vessel – after the Polar Onyx – that Ceona has brought to the market on time and budget. The Ceona Amazon is 199.4m (655 ft) long and 32.2m (106 ft) wide, drawing 8.0m (25 ft) with a gross tonnage of 33,000te. She is due to enter service in March 2015.

BMT Group Ltd, a leading international maritime design, engineering and risk management consultancy, has agreed to purchase Navegação e Controle Indústria e Comércio Ltda (NavCon), a leading Brazilian specialist in monitoring systems for the offshore oil and gas industry. The company's name has officially changed to BMT NavCon Ltda.

BMT Scientific Marine Services Ltda was previously a minority stakeholder in NavCon. This new agreement fully integrates NavCon into the BMT group of companies.

NavCon was founded in 1998 and is strategically located in the technological site of São José dos Campos, São Paulo, Brazil. The company specializes in data acquisition and motion monitoring systems, navigation and heading reference systems, and GNSS receivers for offshore, air, land and space applications.

Tom Johnson, President of BMT Scientific Marine Services, commented: "I am delighted that NavCon has now been fully incorporated into the BMT family of companies as BMT NavCon. We have been working with them for the last couple of years. We have seen them continue to grow and utilize their knowledge and capabilities in the Brazil oil and gas market. We look forward to future opportunities to collaborate."

Francisco Nozolino de Azevedo, General Manager of NavCon, added: "NavCon welcomes this agreement with BMT Group. BMT has proven with their worldwide presence and the multiple industries they support that they are a unique and diverse company. Their support will help us continue to expand and further develop our product and service offerings not only for our local customers, but also for the international oil and gas market."

Governments' responses to low oil prices will have a significant effect on supply dynamics for years to come, depending on whether fiscal regimes are adjusted to provide a landscape in which companies can make big development decisions, says an analyst with research and consulting firm Globaldata.

According to Will Scargill, Globaldata's Upstream Fiscal Analyst, relatively low costs and the design of fiscal regimes in a number of countries should mitigate the impact of the recent price drop in most mature basins. However, the threat to Exploration and Production (E&P) companies' bottom lines means that improved recovery in high-cost mature basins is compromised, new developments in growth areas are being put on hold, and unconventional development is slowing.

Scargill comments: "Several governments have taken positive steps to adapt to lower prices in recent months, with Argentina's measures especially improving project economics. Argentina has reduced the investment threshold for the Investment Promotion Scheme for Hydrocarbon Production and has decreased the rate of export duty, for when oil prices are below $80 per barrel (bbl), to 10–13% from 45%, meaning fields should remain profitable at $50/bbl.

"The impact of low prices in the short to medium term is likely to be felt most keenly by governments in countries that rely on hydrocarbon revenues, such as Russia and Venezuela, while the effect on supply should be relatively limited. The exception to this is in the North Sea, where high costs mean that tax cuts are required if lasting effects on the sector are to be avoided."

However, the analyst notes that to enable companies to make large investment decisions in growth areas and frontier basins, governments should offer a fiscal regime that responds to prevailing price given the cyclical nature of oil prices.

Scargill continues: "Brazil's pre-salt resources could add millions of barrels per day to supply by the 2020s, but this is contingent on E&P firms feeling confident enough to commit billions of dollars to development now.

"Additionally, deepwater discoveries in Mexico's Perdido Fold Belt have generated significant interest, and with an anticipated breakeven price between $41-65/bbl for new licenses, including the additional royalty, the commercial viability of developing these areas will depend on the final fiscal regime design."

BP Egypt has announced another important gas discovery in the North Damietta Offshore Concession in the East Nile Delta. The "Atoll-1" deepwater exploration well, currently being drilled using the 6th generation semi-submersible rig "Maersk Discoverer," has reached 6,400 meters depth and penetrated approximately 50 meters of gas pay in high quality Oligocene sandstones. Expected to be the deepest well ever drilled in Egypt, the Atoll well still has another 1 kilometer to drill to test the same reservoir section found to be gas bearing in BP's significant 2013 Salamat discovery, 15 kilometers to the south.

Maersk Discoverer

Bob Dudley, BP Group Chief Executive, commented: "Success in Atoll further increases our confidence in the quality of the Nile Delta as a world class gas basin. This is the second significant discovery in the license after Salamat. The estimated potential in the concession exceeds 5 trillion cubic feet (tcf) and we now have a positive starting point for the next possible major project in Egypt after BP's West Nile Delta project."

Commenting on the discovery, Hesham Mekawi, BP North Africa Regional President said: "The Atoll discovery is a great outcome for our second well in this core exploration program in the East Nile Delta. It demonstrates BP's continuous efforts to help in meeting Egypt's energy demands by exploring the potential in the offshore Nile Delta. We are proud of our commitment to unlock Egypt's exploration potential that requires large investments to utilize using the latest drilling and seismic technologies."

Atoll-1 was drilled in 923m water depth around 80km north of Damietta city, 15km north of Salamat and only 45 km to the north west of Temsah offshore facilities. BP has 100% equity in the discovery.

BP has a long and successful track record in Egypt stretching back 50 years with investment
exceeding $25 billion, making BP one of the largest foreign investors in the country. In Egypt,
BP's business is primarily in oil and gas exploration and production.

To date, BP Egypt, in collaboration with the Gulf of Suez Petroleum Company (GUPCO),

BP's joint venture (JV) Company with the Egyptian General Petroleum Company (EGPC), has produced almost 40% of Egypt's entire oil production, and currently produces almost 10% of Egypt's annual oil and condensate production.

In addition, through BP's JVs with EGPC/EGAS and IEOC (ENI), the Pharaonic Petroleum Company (PhPC) and Petrobel currently produce close to 30% of Egypt's total gas production.

BP is working to meet Egypt's domestic market growth by actively exploring in the Nile Delta and investing to add production from existing discoveries.

The West Nile Delta (WND) Major Project is a strategic project for BP and its partner and is also critical to Egypt as it will provide more than one billion cubic feet per day (25% of Egypt's current production) of gas.

BP is a 33% shareholder of an NGL plant extracting LPG and propane, United Gas Derivatives Company (UGDC) in partnership with ENI/IEOC and GASCO (the Egyptian midstream gas distribution company).

BP is also present in the downstream sector through Natural Gas Vehicles Company (NGVC, BP 40%) which was established in September 1995 as the first company in Africa and the Middle East to commercialize natural gas as an alternative fuel for vehicles.

▪ Integrated business model resilient through the commodity price cycle
▪ Company on track to grow daily production to 4.3 million oil-equivalent barrels by 2017
▪ Seven major Upstream project startups expected in 2015

Exxon Mobil Corporation (NYSE:XOM) expects to start up 16 major oil and natural gas projects during the next three years and is on track to increase daily production to 4.3 million oil-equivalent barrels by 2017, said Rex W. Tillerson, chairman and chief executive officer.

"Our long-term capital allocation approach has not changed," Tillerson said at the company's annual analyst meeting at the New York Stock Exchange. "We remain committed to our investment discipline and maintaining a reliable and growing dividend. Our integrated model along with our unmatched financial flexibility enable us to execute our business strategy and create shareholder value through the commodity price cycle."

In 2015, ExxonMobil expects to increase production volumes 2 percent to 4.1 million oil-equivalent barrels per day, driven by 7 percent liquids growth. The volume increase is supported by the ramp up of several projects completed in 2014 and the expected startup of seven new major developments in 2015, including Hadrian South in the Gulf of Mexico, expansion of the Kearl project in Canada, Banyu Urip in Indonesia and deepwater expansion projects at Erha in Nigeria and Kizomba in Angola.

In 2016 and 2017, production ramp up is expected from several projects including Gorgon Jansz in Australia, Hebron in Eastern Canada and expansions of Upper Zakum in United Arab Emirates and Odoptu in Far East Russia.

"ExxonMobil has a deep and diverse portfolio of opportunities around the world and a total resource base of more than 92 billion oil-equivalent barrels," Tillerson said. "We have unparalleled flexibility to select and invest in only the most attractive development projects."

ExxonMobil anticipates capital spending of about $34 billion in 2015 – 12 percent less than in 2014 – as it continues to bring major projects online. Annual capital and exploration expenditures are expected to average less than $34 billion in 2016 and 2017.

"We are capturing savings in raw materials, service, and construction costs," Tillerson said. "The lower capital outlook also reflects actions we are taking to improve our set of opportunities while enhancing specific terms and conditions and optimizing development plans."

ExxonMobil's Downstream and Chemical businesses remain resilient in the lower commodity price environment and continue to generate solid cash flow, helped by abundant North American crude and natural gas supplies that have led to lower feedstock and energy costs, Tillerson said.

Approximately 75 percent of ExxonMobil's refining operations are integrated with chemical and lubricant manufacturing, resulting in economies of scale and greater flexibility to produce higher-value products, including diesel, jet fuel, lubes, and chemicals based on market conditions, Tillerson said.

During the meeting, ExxonMobil reviewed its leading performance in 2014. Highlights include:
▪ ExxonMobil distributed $23.6 billion to shareholders in the form of dividends and share repurchases, for a total cash distribution yield of 5.4 percent.

▪ Return on average capital employed was 16.2 percent – more than 5 percentage points higher than its nearest competitor. During the past five years, return on capital employed averaged 21 percent, also about 5 percentage points above its nearest competitor.

▪ Upstream profitability of $19.47 per barrel led competitors and increased by $1.44 per barrel compared with 2013.

▪ ExxonMobil replaced 104 percent of production by adding proved oil and gas reserves totaling 1.5 billion oil-equivalent barrels, marking the 21st-consecutive year the reserves replacement exceeded 100 percent.

MacArtney Underwater Technology and Sea-Bird Scientific have joined forces to deliver no less than four state-of-the-art complete oceanographic instrumentation solutions to research vessel operators in Turkey.

The package
A key common denominator for the type of oceanographic package procured by these Turkish research clients is the powerful combination of highly versatile MacArtney CORMAC Q winches and cutting-edge Sea-Bird Scientific CTDs and water sampling systems. In addition to this, clients have opted to mix-and-match a multitude of different instrumentation options including the broad range of optical and water quality sensors from WET Labs and Satlantic offered by Sea-Bird - to form complete turnkey CTD packages corresponding with their specific scientific measurement needs. In extension of this, all installation, commissioning and training, performed by MacArtney specialists, was also included in the packages.

A MacArtney and Sea-Bird CTD package, complete with CORMAC Q winch and sampler carousel - seen onboard the ARAMA 1

The vessels
The first of four Turkish research vessels to take delivery of the MacArtney and Sea-Bird CTD solution was the R/V TUBITAK Marmara built by CEKSAN shipyard for the Scientific and Technological Research Council of Turkey. The second and third Turkish research vessels to benefit from a turnkey MacArtney and Sea-Bird package was the R/V Seydi Ali Reis - a brand new scientific vessel operated by the Sinop University and the ARAMA 1 - a newly built vessel operated by the Mediterranean Sea and Fishery Institute based in Antalya. Finally, a fourth system procured by an undisclosed Turkish client, for installation on a new research vessel, has been delivered, with commissioning planned to take place during 2015.

Complete solutions and mutual success
The recent Turkey-bound CTD package orders grant tangible testimony to the strength and vast potential of the cooperation between MacArtney and Sea-Bird Scientific. "We are certainly very happy with the recent order flow and I guess one can say that we have become the preferred supplier of this type of solution within the Turkish market. This is definitely a product of two companies combining their strengths to persistently grow a market by offering a truly competitive product boasting unmatchable quality - and with more system orders in the pipeline, MacArtney is delighted to work even closer with Sea-Bird Scientific in the future" - says MacArtney Sales Manager Hans Jørgen Hansen. This opinion is shared by Casey Moore, President of Sea-Bird Scientific who states that "the systems delivered to the Turkish research vessels give testimony to the unique total-system capability and user-friendliness achieved when the systems and expertise of Sea-Bird Scientific and MacArtney are united: By joining forces, we are able to provide complete solutions - from surface to seabed - assuring our clients that the best solutions for their system requirements are also the most convenient for them to implement. This is a definite win for our customers. We look forward to continuing to develop our relationship with MacArtney to provide full service turn-key solutions to clients for years to come."

Claxton Engineering Services, an Acteon company, has been awarded a contract with Statoil to supply conductor and internal centralizers to a minimum of 14 wells on the Gina Krog development, offshore Norway. The contract was finalized in Dec. 2014, and first delivery is scheduled for March 2015. Claxton is responsible for the design, fabrication, testing and installation of the units.

Vegard Dale, business development manager, Claxton, said, "Winning this order reinforces our position as the premier supplier of centralizers in the North Sea and underlines our capacity to understand new challenges and devise solutions."

Conductor centralizers form the interface between the platform jacket and well conductor, assuring vital integrity over the working life of the conductor. Having supplied a range of conductor and structural centralizers to major operators since 1992, Claxton has become the leading North Sea supplier, supplying and installing more than 5000 conductor guide centralizers.

Working out of bases in the UK, Norway, Singapore and Dubai, Claxton has provided engineering across the life of field for three decades with a focus on drilling risers, offshore decommissioning and subsea structures.
-Ends-

VAALCO Energy, Inc. (NYSE: EGY) has announced that on March 2, 2015, the Company spudded the post-salt Kindele-1 well, its first exploration well on Block 5 offshore Angola. As previously announced, VAALCO contracted the Transocean "Celtic Sea" semi-submersible rig to drill the Kindele-1 well to a planned total depth of 2,250 meters in a water depth of approximately 100 meters.

Steve Guidry, Chairman and CEO, commented, "We are very pleased to announce this major step forward for our operations offshore Angola. After nearly nine years of continued commitment to our Block 5 license, we are embarking on an important phase in our efforts to explore for hydrocarbons from a second West African country. We continue to believe that Block 5 is within an area with potential in both post- and pre-salt formations including the syn-rift and sag play."

As previously announced in October 2014, VAALCO, together with its working interest partner, Sonangol P&P, entered into the Subsequent Exploration Phase ("SEP") on Block 5. Under the SEP, VAALCO and Sonangol P&P have committed to drill a total of four exploration wells during the exploration extension period, which expires in November 2017. The four-well obligation includes the original two-well commitment under the primary exploration period that carries over to the SEP period.

The Kindele-1 well will test a fault block adjacent to the Mubafo discovery which tested oil from the Mucanzo sand section within the Pinda group formations. The Kindele-1 will be drilled to a depth of 1,800 meters to evaluate the Mucanzo sand section. The well will then be deepened to the salt to an estimated depth of 2,250 meters for geologic and geophysical correlation. The well is expected to take approximately six weeks to drill to total depth.

Additionally, the Company is nearing finalization of the seismic processing in the outboard portion of Block 5. The seismic processing is being performed to image pre-salt structures as potential targets for future exploration wells on Block 5.

Statoil (U.K.) Limited has awarded a contract to Sentinel Marine Limited to provide a new multi role  Emergency Response & Rescue Vessel (ERRV) to support operations on the Mariner field on the UK Continental Shelf (UKCS).

Mariner Sentinel illustration. (Illustration: Sentinel Marine)

Sentinel Marine is an Aberdeen-based company, owning and operating offshore support vessels in the oil and gas marine industry. The new 65 meter ship, to be named "Mariner Sentinel", will be custom built for Statoil and provide emergency cover, oil spill response preparedness and tanker assist capabilities for the Mariner field.

The ERRV contract with Sentinel Marine has a fixed duration of five years, commencing in July 2016, and also includes five one-year extension options.

"This is an important contract award in our preparations for safe and efficient operations on Mariner," says Gunnar Breivik, managing director of Statoil Production UK.

"The emergency and rescue vessel plays a key role in our safety and emergency preparedness plan. We are pleased with the flexible and cost-effective solution Sentinel Marine is offering, and we are looking forward to working with them as a partner in the operational phase. "Mariner Sentinel" will carry mechanical oil spill response equipment and contribute to a strengthening of the emergency preparedness capacity also on a regional basis," Breivik says.

The Mariner field, located approximately 150 kilometers east of the Shetland Isles, is currently under development, with production start-up planned for 2017. Hook-up and commissioning is expected to start in 2016.

"Mariner Sentinel" is expected to be delivered early in 2017. From the summer of 2016 and until the new vessel is ready for operation, Sentinel Marine will provide another ERRV for emergency cover on Mariner.

Statoil is the operator of the Mariner field with 65.11% equity. Co-venturers are JX Nippon Exploration and Production (U.K.) Limited (28.89%) and Dyas Mariner Ltd. (6%).

Facts:
The Mariner Field is located on the East Shetland Platform of the UK North Sea, approximately 150 kilometers east of the Shetland Isles.

The Mariner heavy oil field consists of two shallow reservoir sections – the deeper, Maureen Formation at 1492 meters and the shallower Heimdal reservoir at 1227 meters.

The development of the Mariner field will contribute more than 250 million barrels reserves with average plateau production of around 55,000 barrels per day.

The field will provide a long-term cash-flow over a 30-year field life. Production is expected to commence in 2017.

The concept chosen includes a production, drilling and quarters (PDQ) platform based on a steel jacket, with a floating storage unit (FSU).

Drilling will be carried out from the PDQ drilling rig, with a jack-up rig assisting for the initial years.

The Mariner field development entails a gross investment of more than USD 7 billion.

Following the final investment decision in December 2012, Statoil in 2013 established an office an Aberdeen.

Statoil's new UKCS operations center is currently under construction on the Prime Four business park at Kingswells west of Aberdeen.

NYC-based PIRA Energy Group reports that February Cushing inventories rose and the WTI contango deepens. In the U.S., record crude stocks testing limits of storage capacity. In Japan, crude runs eased and stocks drew. Specifically, PIRA's analysis of the oil market fundamentals has revealed the following:

February Cushing Inventories Rise; WTI Contango Deepens
Inventories continued to rise at Cushing, fueling deepening WTI contango, despite a rise in absolute prices after seven consecutive monthly declines. As Cushing fundamentals weakened, differentials to WTI strengthened across the board — from Alberta and Wyoming to Texas and Louisiana. Meanwhile, onshore drilling activity continued to plunge, signaling an approaching near-term hiatus in month-on-month shale production growth.

Record U.S. Crude Stocks Testing Limits of Storage Capacity
Gauging exactly how much crude storage capacity remains available has been a hot topic of late, and last week's build, propelling U.S. crude stocks to a new record, will certainly add to the urgency of this discussion. PIRA sees crude stock build continuing, testing the limits of onshore storage capacity.

Japanese Crude Runs Eased and Stocks Drew
Crude runs eased again from maximum seasonal levels, while imports were low enough to induce a stock draw. Finished product stocks also drew moderately. Gasoline demand was modestly higher, but lower incremental exports built stocks fractionally. Gasoil demand eased with higher yield, but a jump in incremental exports drew stocks yet again for the sixth straight week. The indicative refining margin remained strong. Gasoline, naphtha, and gasoil cracks firmed, thus offsetting a decline in the fuel oil crack.

Shift in PADD V Crude Balances Allowing ANS Exports
ANS exports are allowed but rare due both to infrequent arbitrage incentives and the requirement that U.S. flag vessels be used. With recent re-opening of arb incentives over the last two weeks, there is the potential for a near-term export. Longer term, with increased rail crude to PADD V and potentially more U.S. flag vessel availability (due to lower requirements as ANS production declines), occasional export opportunities are more likely.

Deferring Well Completions in a Low Crude Price Environment
As shale oil operators discuss in detail their plans for 2015, much attention has been paid to announcements of deferred well completions. The current contango market presents an opportunity for operators to improve well economics by deferring well completions to reap the benefits of higher future prices and perhaps also lower completion costs.

Onshore Crude Storage Will Be Close to Full in April
PIRA estimates the practical maximum storage capacity in the three major OECD markets. PIRA sees crude inventory levels building close to these levels by the end of April and even somewhat higher in May.

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.

Inaugural meeting brings class and industry together to improve technical standards 
for offshore equipment safety.

As part of its mission to serve the public interest as well as the needs of members and clients by promoting offshore safety and security, ABS, the leading provider of classification services to the global offshore industry, recently convened the inaugural meeting of the ABS Offshore Equipment Advisory Committee.

A group of technical advisors gathered on Wednesday, 4 March 2015, at the ABS Energy Corridor office to exchange information for Rule development and enhancement of classification services for offshore equipment. One of the primary focuses of the Committee is to gather information from offshore experts to guide changes and additions to publications such as the ABS Guide for the Classification of Drilling Systems.

"The ABS Offshore Equipment Committee plays an important role in bringing together key stakeholders to provide critical expertise to improve standards for equipment safety," says ABS Chairman and CEO Christopher J. Wiernicki. "ABS will continue to work with industry, academia and government to develop a robust offshore safety regime that safeguards assets, the environment and most importantly people."

Recognized as a technology leader, ABS is the class society of choice for next-generation units operating in remote and challenging environments and drilling deep, high-temperature, high-pressure wells. ABS classed the first mobile offshore drilling unit (MODU) in 1958 and continues to be the classification leader for the high-specification units that will support the energy needs of future generations.

Chevron Corporation (NYSE: CVX) executives, at the company's annual security analyst meeting in New York, expressed confidence in the long-term energy business and highlighted its growth outlook through 2017. At the same time, company executives outlined near-term actions to address the recent decline in commodity prices.

"The fundamentals of the oil and gas business remain attractive for our company and investors, as our products are vital to a growing world economy," said John Watson, Chevron's chairman and CEO. Watson added, "We are well-positioned to manage through the recent drop in commodity prices and are taking several responsive actions, including curtailing capital spending and lowering costs."

"Over the next few years, we expect to deliver significant cash flow growth as projects currently under construction come online. Our intention is to demonstrate performance that will allow our 27-year history of successive increases in our annual dividend payout to continue," Watson added.
George Kirkland, vice chairman and executive vice president, upstream, reviewed Chevron's upstream portfolio, strategies, and historical performance, including the company's consistent exploration and resource capture success over the past decade. He also highlighted the upstream segment's superior financial performance relative to industry peers, as well as its leading competitive cost structure.

"This was the fifth consecutive year we have led the integrated peer group on earnings per barrel," Kirkland said. "Our base business is performing exceptionally well and is profitable, even in a lower-price environment. Our large, diverse resource base allows us to be very responsive to market conditions, with flexibility to select only the most attractive opportunities to move forward."

Jay Johnson, senior vice president, upstream, provided an overview of the specific actions being taken to manage capital outlays, lower costs and improve operating efficiencies, all of which will contribute to improving upstream cash flow. He also provided a comprehensive update on Chevron's deep queue of projects and other future investment opportunities, emphasizing their strong cash and value generation potential.

"We continue to make steady progress on our LNG and deepwater developments, and will continue to ramp-up production from our shale and tight assets, particularly from our very attractive Permian Basin acreage position," Johnson said. "We expect to achieve 20 percent production growth by 2017, a rate which is simply unmatched by our industry peers. More importantly, our new production is expected to have considerably higher margins than in our existing portfolio."

Pat Yarrington, vice president and chief financial officer, and Mike Wirth, executive vice president, Downstream and Chemicals, also participated during the question and answer session of the meeting, following the main presentations. Presentations and a full transcript of the meeting are available on the Investor Relations website at www.chevron.com.

iSURVEY Pte Ltd, Singapore, has been awarded a marine construction support contract by Solstad Offshore Asia Pacific to provide positioning and survey support for its 2015 platform installation program in Thailand, on board the DLB 'Norce Endeavour' (photo).

iSURVEY will provide services including positioning and monitoring during jacket setting, together with final positioning, levelling and survey assistance during pile cut-off. Subsea positioning is to be provided to integrate IKM Subsea's Merlin work-class ROV into installation operations.

iSURVEY Singapore's managing director Bill Petrie said: "The first few months of 2015 are proving to be extremely positive for iSURVEY's business in the Asia Pacific region, which has been reinforced by this contract award.

"We are pleased to have been selected to handle this work by Solstad Offshore Asia Pacific, and look forward to working closely together over the coming months."

iSURVEY Group is a leading provider of survey and positioning services to the global oil and gas, telecommunications and offshore renewable energy sectors. The Group is headquartered in Norway with bases in Singapore and Aberdeen.

The low oil price is having major impact across the oil & gas industry. However, DW's recently released World Floating Production Market Forecast 2015-2019 expects capital expenditure on FPS units to total $81bn between 2015 and 2019. While many industry participants may consider this surprising due to daily announcements of budget cuts, it is important to note that while a number of FPS projects have been put on hold, few have cancelled – indicating that operators are simply employing wait-and-see tactics on projects. Over the next five-years, deepwater projects in the 'golden triangle' of Latin America, US Gulf of Mexico and West Africa, are expected to account for more than 60% of FPS expenditure. This is not unexpected given diminishing reserves in many onshore areas and in shallow waters, coupled with the widely accepted fact that floating production systems are a key enabler for production in deep waters.

Deepwater West Africa, particularly offshore Angola and Nigeria, is a growing market despite the current downturn. As we noted in February, while cuts in expenditure are being announced, IOCs are pressing ahead with key projects in both countries, all of which are expected onstream before 2018. Chevron, ExxonMobil and Eni all have major deepwater projects in Angola, collectively adding a peak capacity of approximately 1 million barrels per day. Total also has a number of FPS projects in development – examples include the Eastern Hub FPSO in Angola and the Egina FPSO in Nigeria.

While Petrobras is currently embroiled in a corruption scandal, a number of the NOC's FPS units were ordered prior to the oil price downturn therefore these projects are unlikely to be affected. However, future orders have some uncertainly due to the scandal. Overall, due to the growing importance of deepwater reserves, associated floating production activity is expected to increase despite the oil price downturn. As such, offshore West Africa will remain a key area for FPS deployments and oil & gas stakeholders' interest in the region is well placed.

Damilola Odufuwa, Douglas-Westwood London
This email address is being protected from spambots. You need JavaScript enabled to view it.
www.douglas-westwood.com

The Island Offshore Group reports 2014 revenue of NOK 2.732 mill which is 25% higher than 2013. Fleet utilization was 91% in 2014 which is satisfactory considering completion of a significant maintenance and modification program and a disappointing spot market. A total of 5 new vessels was added to the fleet in 2014 and 2 vessels were sold during the year.

EBITDA for the year totals NOK 1.270 mill, up from NOK 885 mill in 2013. 2014 figures include a sales gain of NOK 277 mill.

2014 profit before tax is NOK 406 mill including unrealized disagio of NOK 210 mill related to conversion of USD denominated loans.

In addition to strong financial results, significant improvement in important QHSE figures was achieved during 2014, hereto reduced personnel injury frequency rate and reduction of the fleet's emission of CO2.

Our strategy remains firm with focus on securing long term commitment with strategically preferred clients. The Group's order backlog is still strong and totals NOK 6.4 billion which equals approximately 2.4 times 2014 revenue.

Contract coverage for 2015 is approximately 80%.