The state-of-the-art facility is scheduled for completion in late 2015.

Seanic Ocean Systems Inc. is pleased to announce that construction of a new, state-of-the-art facility will soon be underway in west Houston. The company's relocation and expansion, a result of evolving customer needs and expectations, will provide extensive space for manufacturing of subsea hardware and tooling, equipment storage and client collaboration. The new campus, slated for occupancy in late summer, will also be home to a state-of-the-art in-ground test tank large enough for on-site System Integration testing of ROV tooling and other related hardware.

Located on 10.5 acres, Seanic's new facility will include a 55,000 square-foot shop and operations building, 18,000 square feet of which will be dedicated to manufacturing, testing and assembly. An additional 6,000 square-foot area devoted to welding operations will enhance Seanic's ability to design and build custom subsea hardware for seamless interface with its line of tooling and equipment.

The building will also include 18,000 square feet of indoor storage space that will allow clients to store and maintain their own equipment, whether purchased from Seanic or elsewhere. A detailed inventory and maintenance program, already in place at Seanic's current facility, will ensure that stored equipment is both operational and available when needed. A large outdoor storage area will also be available for on-site storage of larger equipment.

Taking place within Seanic's testing and assembly space, Factory Acceptance Testing and System Integration Testing will provide clients with the assurance that their purchase meets all required specifications and will function properly upon deployment. The pinnacle of Seanic's testing facility, a 50' x 50' x 30' in-ground wet test tank, will enable on-site testing of Intervention Tooling and system integration of subsea hardware. The tank will be outfitted with multiple underwater cameras and allow for real-time performance monitoring.

"Seanic has continued to grow since its inception in 2007, and the capabilities of this new facility will allow Seanic to expand upon the products and services that our customers have come to expect from us," commented Tom Ayars, President of Seanic. "An easily accessible test tank of this size is long overdue in the Gulf Coast region. Houston is the hub for creating new deep water concepts and this tank will allow us to efficiently develop and test new systems and applications in a state-of-the-art, convenient and user-friendly facility."

Seanic Ocean Systems, headquartered in Houston, Texas, engineers and manufactures customized ROV subsea hardware and tooling products. A team of highly specialized engineers and staff bring decades of experience in the subsea industry and can help create a hardware or tooling package to suit any project needs, incorporating custom engineered solutions as well as standard lines of industry products. From initial concept development to the final factory acceptance test, Seanic Ocean Systems engineers and delivers quality that lasts.

BG Group has signed a global alliance with KBR enhancing the company's capacity to deliver commercially attractive oil and gas projects around the world.

The single-partner alliance, which has been signed for six years initially with options to extend to up to 10 years, will involve KBR's experienced engineers and specialists providing technical support, services (in both the pre-FEED and FEED stages), and project management expertise across BG Group's global upstream portfolio.

Under the agreement, KBR will provide a flexible resource that can be scaled to match the specific requirements of each project. In a lower oil price environment this is an important aspect of the alliance which enables BG Group to help minimize its fixed costs whilst retaining access to high value technical expertise and support.

BG Group operates in more than 20 countries and is pursuing material opportunities and projects in Brazil, Australia, Tanzania and USA.

Sami Iskander, BG Group, Chief Operating Officer commented:

"We are pleased to announce our upstream alliance with KBR, which represents a significant evolution in the way we work with contractors. We will be taking a more integrated and collaborative approach in which we can fully capitalize on the high caliber of people and the knowledge that our partner KBR can bring to our business.

"The alliance will provide us with access to dedicated and proven third-party expertise and resources that can be tailored to specific projects. Importantly, it will focus on enhancing BG Group's productivity and agility as we develop projects that will deliver the next phase of the company's growth."

Stuart Bradie, KBR President and Chief Executive Officer commented "We are excited about this opportunity to continue our relationship with BG Group while continuing to demonstrate our track record of safety, quality personnel and experience in the upstream market sector".

A thirty day public consultation on plans to commence decommissioning of the Brent oil and gas field in the North Sea will begin week commencing Monday February 16. The field has produced around 10% of all UK North Sea oil and gas and generated more than £20 billion of tax revenue for the UK since production began in 1976.

The decommissioning program, submitted by Shell, for the Brent Delta platform (one of four installations located in the field) recommends that the 23,500 ton 'topside' of the platform is removed in one piece by a heavy-lift dedicated vessel that arrived in Rotterdam in January. Work is underway to strengthen the topside in anticipation of the lift, which will be one of the heaviest the North Sea has ever seen. This single lift technique will substantially reduce the risk, cost and environmental impact of the operation.

Shell Photographic Services, Shell International Ltd

If the decommissioning program is formally approved by the Department of Energy and Climate Change (DECC), the topside will be taken to Able UK, a specialized decommissioning company in Teesside, where more than 97% of the material will be reused or recycled.
Alistair Hope, Brent Decommissioning Project Director, Shell, said: "The Brent field has been a prolific national asset for many years, creating and sustaining thousands of jobs and contributing billions of pounds to the UK government. The engineering and planning skills which led to the discovery and subsequent successful production of oil and gas over four decades are essential during decommissioning, which is the natural next stage of the field's life. We hope many people will play an active part in the consultation."

A second decommissioning program for the remaining infrastructure in the Brent field, including Brent Delta's legs, three other sets of topsides and legs, 140 wells and 28 pipelines, will be submitted when Shell is confident the proposals are safe, technically achievable, environmentally sound and financially responsible. It will be subject to a separate consultation. Brent Delta stopped production in 2011 and Brent Alpha and Bravo ceased in November 2014. Production from the field continues through Brent Charlie.

Stakeholders from over 180 organizations, including NGOs, academic institutions including the University of Aberdeen and independent scientific experts have been engaged in the development of the Decommissioning Program since 2007.

NYC-based PIRA Energy Group believes that low oil prices and cheap money will lead to stronger global economic growth and much stronger oil demand. In the U.S., the stock surplus widened again. In Japan, crude runs rose fractionally on the week and crude imports rose to produce a crude stock build. Specifically, PIRA's analysis of the oil market fundamentals has revealed the following:

World Oil Market Forecast
Low oil prices and cheap money will lead to stronger global economic growth and much stronger oil demand than conventional wisdom would suggest. Nevertheless, for the next six months, oil supply will continue to overwhelm demand, in part because of rapid growth in Iraqi production as its government desperately seeks more revenue. Already wide contango will further widen as crude oil stocks in the three major OECD markets fill to the brim and floating stocks keep on increasing.

U.S. Stock Surplus Widens Again
Compared to last year, U.S. commercial oil inventories are now 125 million barrels, or 12%, higher, as this past week's inventory increase contrasted with last year's decrease for the same week. Crude stocks increased strongly this past week while products drew. So far in January the overall inventory increase has been the largest since 2009.

Japan Crude Runs Near Seasonal Maximums, Product Demands Slightly Better
Crude runs rose fractionally on the week and crude imports rose to produce a crude stock build. Finished product stocks fell with a strong draw on kerosene and lesser draws for gasoil and gasoline. Indicative refining margins remain strong.

Limited Oil Consumption Gains in Northeast Power Sector Despite Low Oil Prices
Despite colder-than-normal January weather, the Northeast of the United States is not seeing much in the way of substitution of oil for natural gas. In fact, oil consumption will be substantially below year-ago levels despite roughly comparable weather.

Can Global Oil Demand Really Grow 1.5 MMB/D in 2015?
PIRA's outlook for global oil demand growth in 2015 may seem quite bullish when compared with the actual growth of 0.7 MMB/D in 2014, but several factors make our forecast very reasonable, with potential upside. Moderately faster world GDP growth should push up demand growth by 130 MB/D, and the 50% decline in prices should add an additional 780 MB/D of demand growth, even using relatively modest price elasticity assumptions and accounting for the significant strengthening of the U.S. dollar.

Expiration of March WTI Contract of Increasing Importance
The expiration of the March WTI crude oil contract, along with the rolling of various commodity indices and ETFs, has the making of an interesting period of price dynamics over the next several weeks, because of the huge open interest in the contract. The March WTI contract will last trade February 20th, with various commodity indices and ETFs undergoing contract roll schedules in the first part of February (fifth to the 10th business day, or Feb. 6th-11th). This could contribute to a decline in flat price, given that the balance of power would seem to be in favor of the shorts because of the mechanical and widely known nature of the ETF and passive index rolls.

Floating Storage Expected to Play Key Role in Crude Containment
Over the next several months, the cost of storage and, in turn, the magnitude of the market contango will be a crucial factor in determining how low the spot price must go. With less expensive onshore storage expected to fill, floating storage is likely to be the market balancing step. The marginal costs of storing crude on VLCCs and Suezmax tonnage are expected to be the critical factors in setting the level of contango in the crude market. So key questions for the oil and tanker sectors are how much tonnage is available for placement into offshore storage and what will it cost?

European LPG Rises with Stronger Naphtha
Regional naphtha rallied to the highest levels of the year as high cracker runs, increased gasoline blending, and arbitrage cargoes to Asia have pulled NWE stocks down significantly. Cash butane barge lots rallied 16% to $398/MT on stronger naphtha and as Shell's Pernis refinery restarted an alkylation unit, which has helped clean up C4 length in the region. Large propane cargoes followed suit, gaining 4% last week.

U.S. Ethanol Prices Decline to Lowest Values in Almost a Decade
During the first half of January prices fell to the lowest level in almost 10 years, inventories built, and margins fell to the worst level in two years. Economics improved during the last half of the month.

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.

Chevron Corporation (NYSE: CVX) has announced a $35 billion capital and exploratory investment program for 2015. Included in the 2015 program are $4 billion of planned expenditures by affiliates, which do not require cash outlays by Chevron. The 2015 budget is 13% lower than total investments for 2014.

"We continue to execute against a consistent set of business strategies which are focused on creating long-term value for our shareholders. Although commodity prices have fallen recently, we believe long-term market fundamentals remain attractive," said Chairman and CEO John Watson. "Our investment priorities are ensuring safe, reliable operations and progressing our queue of projects under construction. Once on-line, these new projects are expected to measurably increase our production and cash generation," he said.

"We will continue to monitor and be responsive to market conditions, and to actively pursue cost reductions throughout our supply chain in order to lower overall outlays. We anticipate growing flexibility in our spend as projects under construction are completed and as supplier contracts are renewed. We are testing our short-cycle investments, particularly base business and unconventional assets, at current prices and are selecting only the most attractive opportunities to move forward," Watson continued.

Highlights of the Capital and Exploratory Spending Program:

Chevron 2015 Planned Capital & Exploratory Expenditures in $billions
International Upstream 23.4
Total Upstream 31.6
U.S. Downstream 2.0
International Downstream 0.8
Total Downstream 2.8
Other 0.6
TOTAL (Including Chevron's Share of Expenditures by Affiliated Companies) 35.0
Expenditures by Affiliated Companies (4.0)
Cash Expenditures by Chevron Consolidated Companies 31.0

For Upstream, approximately $12 billion of planned upstream capital spending is directed at existing base producing assets, which includes shale and tight resource investments (~$3.5 billion). Roughly $14 billion is related to the construction of major capital projects already underway, primarily LNG (~$8.5 billion) and deepwater developments (~$3.5 billion). Global exploration funding accounts for approximately $3 billion.

Roughly 75 percent of affiliate expenditures are associated with investments by Tengizchevroil LLP in Kazakhstan and Chevron Phillips Chemical Company LLC (CPChem) in the United States.

Reflects robust Administration support for science-based decision-making in managing natural resources

The President's fiscal year 2016 budget request for the U.S. Geological Survey is $1.2 billion, an increase of nearly $150 million above the FY 2015 enacted level. The FY16 budget reflects the vital role the USGS plays in advancing the President's ongoing commitment to scientific discovery and innovation to support a robust economy, sustainable economic growth, natural resource management, and science-based decision-making for critical societal needs.

The budget request includes increases that ensure the USGS is at the leading edge of earth sciences research. It includes robust funding for science to inform land and resource management decisions, advance a landscape-level understanding of ecosystems, and develop new information and strategies to support communities in responding to climate change, historic drought, water quality issues, and natural hazards. The budget also funds science to support the Nation's energy strategy, to help identify critical mineral resources, and to address the impacts of energy and mineral development on the environment.

"The USGS has a strong 136-year legacy of providing reliable science to decision-makers," said Suzette Kimball, Acting USGS Director. "This budget request recognizes our unique capabilities with multi-disciplinary earth science research and will allow the USGS to meet societal needs for our Nation now and in the future."

Key increases in the FY 2016 Budget are summarized below. For more detailed information on the President's 2016 budget, visit the USGS Budget, Planning, and Integration website.

Meeting Water Challenges in the 21st Century
The FY16 budget provides an increase of $14.5 million above the FY 2015 enacted level for science to support sustainable water management. Meeting the Nation's water resource needs poses increasing challenges for resource managers, who must contend with changes in the frequency and magnitude of floods and droughts. As competition for water resources grows for activities such as farming, energy production, and community water supplies, so does the need for information and tools to aid decision-makers. The budget provides increased funding across several USGS mission areas to support resource managers in understanding and managing competing demands related to water availability and quality and to enable adaptive management of watersheds to support the resilience of the communities and ecosystems that depend on them. This includes a $3.2 million increase for science to understand and respond to drought, a $4 million increase for water use information and research, a $2.5 million increase to study ecological water flows, a $1.3 million increase for stream flow information, and a $1.0 million increase to advance the National Groundwater Monitoring Network.

Powering Our Future and Supporting Sustainable Energy and Mineral Development
The 2016 USGS budget provides $9.6 million in program increases across the energy, minerals and environmental health portfolio for science to support the sustainable development of unconventional oil and gas resources, renewable energy sources such as geothermal, wind, and solar, critical minerals such as rare earth elements, and to address the environmental impacts of uranium mining.

Specifically, the budget includes a program increase of $1 million for mineral resources science to continue life-cycle analysis for critical minerals such as rare earth elements and to develop new science and tools to reduce the impacts of minerals extraction, production, and recycling on the global environment and human health. A life-cycle analysis will trace the flow of critical minerals from generation and occurrence through the consequences of human activity to ultimate disposition and disposal. The Nation faces key economic decisions within each stage of the resource life cycle. Scientific understanding is an essential input to these decisions. The program change will support new workforce capability to address the main thrusts of the President's four working groups in the Office of Science and Technology Policy that are currently focused on critical and strategic materials essential to national security, economic vitality, and environmental protection.

Responding to Natural Hazards
The budget provides an increase of more than $6.6 million above the FY 2015 enacted level for natural hazard science. This includes an increase of $4.9 million to expand the Global Seismic Network used for worldwide earthquake monitoring, tsunami warning, and nuclear treaty verification monitoring and research in partnership with the Department of Energy and the Department of Defense. It also includes a $1.7 million increase to support space weather (solar flare) geomagnetic monitoring. The increase will also support the installation and operation of rapid-deployable streamgages and expand the library of flood-inundation maps to help manage flood response activities. The proposed increase will also support landslide, wildfire, and sinkhole response capabilities as well as provide disaster scenario planning products for emergency managers. Included in the request is funding to build on investments to continue development of an earthquake early warning system, with the goal of implementing a limited public warning system for the U.S. west coast by 2018, as well as continued investments in volcano monitoring networks and science.

Building a Landscape-Level Understanding of Our Resources
The budget includes $15.6 million to expand, enhance, and initiate ecosystem science activities to increase the understanding of the Nation's landscapes and how they work. This includes budget increases of $6.7 million in support of critical landscapes. Specifically it provides a $4.2 million increase for the Arctic, a $1 million increase to study sagebrush landscapes that provide habitat for survival of greater sage-grouse, and a $1.5 million increase that supports science for Puget Sound, Columbia River, and the upper Mississippi River. USGS research will continue to support restoration of other priority ecosystems, such as Chesapeake Bay, Everglades, Great Lakes, California Bay Delta, and the Gulf Coast. The budget request also provides an increase of $2.2 million for research on invasive plants and animals that cause significant economic losses in the U.S. and transmit diseases to wildlife and people, and $1.6 million to study the decline of insects, birds, and mammals that pollinate agricultural and other plants. Finally, the budget increases funding by $5.1 million to support coastal resilience to hazards and adaptation to long-term change from sea-level rise and coastal erosion.

Foundations for Land Management
The President's budget request includes an increase of $37.8 million to provide data and tools to help land and resource managers make informed decisions across the landscape and provide data and information to the public for use in a wide variety of applications. The budgets of USGS and NASA provide complementary funding to sustain the Landsat data stream, which is critical to understanding global landscapes. An increase of $24.3 million in the USGS budget supports the ground system portion of the Sustained Land Imaging Program, including funding for ground systems development for a Thermal Instrument Free Flyer, Landsat 9 (a rebuild of Landsat 8), and to receive data from internal partners. The increase also will enhance the accessibility and usability of data. Specifically, the budget includes a $4 million increase for Landsat science products for climate and resource assessments.

The budget provides increases for other foundational data and tools needed to support landscape-level understanding. For example, an increase of $3.7 million will expand three-dimensional elevation data collection using ifsar (interferometric synthetic aperture radar) for Alaska and lidar (light detection and ranging) elsewhere in the U.S. in response to growing needs for high-quality, high-resolution elevation data to improve aviation safety, to understand and mitigate the effects of coastal erosion, storms, and other hazards, and to support many other critical activities. A $1.8 million increase will enhance understanding of the benefits of the Nation's ecosystem services, and a $1.1 million increase for the Big Earth Data Initiative will make high-value data sets easier to discover, access and use. The accessibility and usability of these data are critical for land management, hazard mitigation, and building a landscape-level understanding of our resources.

Supporting Community Resilience in the Face of a Changing Climate
The USGS plays an important role in conducting research and developing information and tools to support communities in understanding, preparing for, and responding to the impacts of global change. The budget includes an increase of $32 million above the FY 2015 enacted level for science to support climate resilience and adaptation. Climate change requires the Nation to prepare for more intense drought, heatwaves, wildfire, flooding, and sea level rise. These challenges are already impacting infrastructure, food and water supplies, and physical safety in communities across the Nation.

Understanding potential impacts to communities, ecosystems, water, plant and animal species, and other resources is crucial to federal, state, tribal, local, and international partners as they develop adaptive and resilient strategies in response to climate change. The budget includes a $6.8 million increase in science for adaptation and resilience planning, an increase of $2.3 million for the USGS to provide interagency coordination of regional climate science activities across the Nation, an increase of $8.7 million to support biological carbon sequestration, and an increase of $11 million for the USGS to support the community resilience toolkit, which is a web-based clearinghouse of data, tools, shared applications, and best practices for resource managers, decision-makers, and the public.

As a result of a £300,000 investment in its ground breaking armoured cabling line earlier this year, Hydro Group Plc has secured £2million worth of new defence contracts for 2015.

Successor submarine

The Aberdeen headquartered company, a global design and manufacturer of underwater cables and connectors for the subsea and defense sector, is showcasing its new machinery and extensive product offerings to the industry at the Underwater Defense & Security Conference in Portsmouth this month.

Graham Wilkie, Sales Director at Hydro Group said: "We are currently one of few companies in the UK to offer this cutting edge technology. The new armouring line demonstrates a significant advancement in our capabilities and skill set, and further enhances the scope of work we can offer the industry."

The recent six-figure investment extends Hydro Group's product line, equipping the company with armouring expertise, to offer custom-designed single and multi-layered steel armoured cables in galvanised improved steel and corrosion resistant steels.

Mr Wilkie continued: "The Underwater Defense and Security Conference is a key platform for showcasing our capabilities to the defence sector, providing the underwater community with a unique opportunity to understand evolving threats, as well as emerging and future technologies."

Last year, Hydro Group was awarded a prestigious £2million defense contract to aid BAE Systems in equipping the UK Royal Navy with its future long term nuclear submarine deterrent capability. The Group's expertise and experience resulted in it being selected to design, develop and qualify a range of connector zed through hull penetrators, highlighting the significant capabilities of Hydro Group's engineers, and the extensive product range the company offers.

"The demand for complex and challenging designs has grown in the last few years. This has resulted in our engineers applying their extensive knowledge and capabilities in materials and applications, developed over 30 years, to provide the highest quality solutions, designed for each environment," concluded Mr Wilkie.

Hydro Group's cable and connectivity solutions are developed to withstand the harshest environmental conditions, including salt water, solar effects, storm force winds and dynamic tidal and wave motion. These factors place extreme loads on the subsea systems, connectors and cables, resulting in the company's connectors being designed and manufactured for flexibility and environmental endurance.

The recent oil price downturn is expected to have a significant impact on the global land rig market in 2015, as operators announce planned cuts to expenditure. Following a 24% rise over the 2010-2014 period, the number of active drilling rigs is expected to fall 12% in 2015.

The North American market, which is particularly susceptible to fluctuations in commodity prices, is expected to see the largest impact, with the active drilling rig fleet forecast to decline by 29%. Notably, Apache Corporation has announced plans to cut spending on its North American assets by 26 percent in 2015.

In comparison, the impact of the oil price downturn on the international market is expected to be less severe. OPEC's decision in November 2014 not to cut production indicates that drilling activity in the key Gulf producing states, and subsequently demand for land rigs, is unlikely to be affected in the near-term by the low oil price environment. In contrast, Russia's economy is heavily reliant on oil exports, and the recent economic sanctions imposed are expected to contribute to a further decline in drilling activity in 2015, causing the number of active drilling rigs to stagnate. In Latin America, the oil price downturn has placed increased financial pressure on Brazil's Petrobras. Venezuela has a high breakeven price and has also been significantly impacted. Douglas-Westwood is forecasting a decline of 4% in the Latin American active rig fleet in 2015.

Post-2015, the outlook for the market is more positive, with the global active rig fleet forecast to increase by 20% over the next five years as drilling activity increases, reaching just under 6,100 units in 2019. However, there remains uncertainty within the market, and demand for high HP rigs is likely to be affected if high Capex unconventional projects become uneconomic.

Katy Smith, Douglas-Westwood London
+44 1795 594745 or This email address is being protected from spambots. You need JavaScript enabled to view it.
www.douglas-westwood.com

Joint agreement expands company's opportunity set in West Africa

Chevron Corporation (NYSE: CVX) announced yesterday that its wholly-owned subsidiary Chevron Mauritania Exploration Limited has reached an agreement to acquire a 30 percent non-operated working interest in Blocks C8, C12 and C13 offshore Mauritania from Kosmos Energy. The transaction is subject to the approval of Mauritania's government.

The deepwater blocks off the coast of Mauritania cover a contiguous area of approximately 6.6 million gross acres in water depths ranging between 5,249 feet (1,600 meters) and 9,842 feet (3,000 meters).

Blocks C8, C12 and C13 cover a contiguous area of approximately 6.6 million gross acres in water depths ranging between 5,249 feet (1,600 meters) and 9,842 feet (3,000 meters).

Under the agreement, Kosmos Energy retains a 60 percent interest and remains the operator. Société Mauritanienne des Hydrocarbures et de Patrimoine Minier (SMHPM), Mauritania's national oil company, will continue to have a 10 percent interest. Following any commercial discovery after the exploration phase, Chevron will become the operator maintaining a 30 percent working interest.

DNV GL, the technical advisor to the oil and gas industry, has been selected by Wintershall Norge AS as the sole supplier for the combined role of Independent Verification Body (IVB) and Third Party Design Verification scope for the subsea, umbilicals, risers and flowlines (SURF) part of the Maria field development project.

The contract is expected to run until the end of 2018, with a value of potential 30 million NOK (US$ 3.95 million).

Sture Angelsen , Business Development Manager in DNV GL, says: "We are delighted to be part of Wintershall's first field development in Norway. By being able to deliver both the IVB and Third Party Design Verification, we are able to help streamline the project execution. Our aim is to ensure quality and contribute to a timely project execution and start-up, drawing on our broad technical expertise.

The IVB model will be used for verification of the safety critical elements, in addition to traditional third party verification of subsea production systems (SPS), pipelines, umbilical and risers. The IVB role covers all phases from design through commissioning, while the third party verification role covers design and options for involvement in the fabrication/-manufacturing/installation and commissioning phase. "This approach to handling verification is well known in the UK sector, but less used in Norway," adds Angelsen.

The Maria oil discovery is located in 300 to 350m of water in the Haltenbanken region of the Norwegian Sea. Maria will be developed using a subsea facility tied via rigid flowlines and flexible risers to Kristin with gas lift being supplied from Åsgard B via Tyrihans and sulphate reduced sea water supplied with injection pressure from Heidrun. The discovery is expected to produce around 188 million barrels of oil equivalent oil and gas. First oil is planned in Autumn 2018.

Aberdeen head-quartered Ashtead Technology has announced a 23% rise in turnover and almost 40% increase in profits for the year ended April 2014. The subsea technology company, which specializes in the sale and rental of subsea equipment and associated services, has seen turnover increase from £22.2 million in 2013 to £27.4 million.

In the 12 months to April 2014, the company made its biggest ever annual investment in rental equipment with capital expenditure in the year rising from £9million in 2013 to over £10million, underpinning the goal of supplying customers with the latest technology from a market leading equipment rental fleet.

Operating profits increased by almost 40% to £13.6milion from £9.7million in 2013.

The company now employs 95 people in Aberdeen, London, Houston and Singapore with agents in Abu Dhabi, Perth (Australia) and Stavanger.

Commenting on the results Allan Pirie, chief executive officer of Ashtead Technology said: "These results reflect our achievements in retaining customers and attracting new business whilst positioning the company for continued sustainable growth across all our global bases.

"Considerable capital investment in our rental fleet, coupled with investment in our people and processes, has underpinned revenue and profit growth.

"Recognizing that our customers demand more than a quality equipment rental service, the development of our increased range of added-value services has enabled us to meet and exceed expectation and we are confident of building on these results as we continue to secure new business, particularly through the increasing demand for integrated equipment package support."

Ashtead Technology's service based growth strategy has recently resulted in the launch of the Ashtead Academy offering customers a range of training and a move into equipment sales reinforced by securing sales representation agreements with leading manufacturers such as Seabotix and ECA.

A globally recognized market leader in the rental of specialist subsea technology, Ashtead is committed to further improving and growing its range of value-added services which now include the supply of offshore personnel, equipment sales, asset management, calibration, custom engineering and training.

These accounts are for Amazon Group, trading as Ashtead Technology, which encompasses all global operations and the results from Ashtead Technology Limited which comprises the UK, Norway and Middle-east only.

For the fifth consecutive year, Ensco plc (NYSE: ESV) earned first place for total customer satisfaction in the Oilfield Products & Services Customer Satisfaction Survey. Conducted by EnergyPoint Research, the annual survey is the industry benchmark for customer satisfaction in the global oilfield.

Ensco led all offshore drilling contractors in the survey by receiving top honors in 10 of 16 categories including total customer satisfaction; health, safety and environment; technology; deepwater drilling; harsh climate applications; shelf wells; horizontal and directional wells; and special applications. Ensco also rated first in the North Sea, Latin America and Mexico.

CEO and President Carl Trowell stated, "Success for customers is a core value of our company and we remain committed to delivering the highest levels of safety and operational excellence." He added, "Our ongoing pursuit of world-class operating systems is aimed at being number one in service quality and delivering an incident-free workplace. Therefore, we are gratified to be recognized as the best offshore driller in terms of total customer satisfaction. Our top scores across a breadth of categories also reflect the excellent uptime performance and drilling efficiencies that our offshore crews and onshore personnel provide to customers."

The independent survey was conducted as part of EnergyPoint Research's 2014 industry-wide Oilfield Products & Services Survey, comprising thousands of in-depth evaluations performed over a 24-month period.

Proposal would strengthen oversight capacity for offshore oil and gas development under the President's all-of-the-above energy strategy

President Obama's fiscal year 2016 budget request for the Bureau of Safety and Environmental Enforcement (BSEE) is $204.7 million, providing robust support that will enable BSEE to keep pace with industry activity and the technology developments that are helping to drive deepwater oil and gas development on the U.S. Outer Continental Shelf.

The Administration's proposal sustains funding increases received in previous years and provides critically needed resources to further strengthen BSEE's regulatory and oversight capabilities for OCS oil and gas development, as the Administration works to responsibly expand domestic energy production through the President's all-of-the-above energy strategy.

"The President's 2016 request fully reflects the Administration's continued emphasis by ensuring that development of the Nation's vast offshore energy resources is conducted in a safe and environmentally responsible manner," said BSEE Director Brian Salerno. "Funds will be used to recruit expert engineers, scientists, inspectors and oil spill prevention specialists to support the development of risk-based approaches to oversight and compliance on the Outer Continental Shelf."

By the end of 2014, there were 69 deepwater rigs and non-rig units working in the Gulf of Mexico, up from 40 at the start of the year. The Energy Information Administration projects offshore production will continue to grow through 2040, as the pace of development activity quickens and new, large development projects, predominantly in the deepwater and ultra-deepwater areas of the Gulf of Mexico, are brought into production.

The 2016 budget will continue to build a robust culture of safety, with a strong focus on risk reduction. The Bureau will bolster its capacity for analyzing data gained through incident reporting requirements, near-miss reporting, and real-time monitoring. The Bureau will also continue to work with industry to better understand their safety processes, so that BSEE can mitigate and reduce risk. Through these initiatives and others, BSEE will continue to ensure that offshore development occurs in a safe and environmentally responsible way.

The 2016 budget request includes an increase of $1.7 million to establish the Engineering Technology Assessment Center to support the evaluation of new and emerging technologies and develop associated safety and oversight protocols. The increased funding will add greater depth and capacity to the BSEE, so that as industry continues to innovate and develop new capabilities, the BSEE will be able to keep pace. The Center will provide a Bureau-wide focal point for emerging technology evaluation. The FY 2016 request also better aligns inspection fees with BSEE's risk-based approach to inspections and compliance.

The 2016 request also includes a program increase of $750,000 for establishing the Renewable Energy Inspection Program. The funding will support the development of regulations, inspection guidelines, procedures, and criteria for inspections of offshore renewable energy facilities so that the appropriate regulatory structure will be in place to protect the safety of these facilities as well as the environment.

Anticipated fixed cost increases are funded at $1.4 million. BSEE's targeted funding increases are largely offset by anticipated savings from continued management efficiency efforts (-$2.4 million) and a reduction in offsetting collections funding (-$1.4 million), for a net funding increase of $46,000 over the 2015 enacted level.

The President's budget proposes $14.9 million for Oil Spill Research, equal to the 2015 enacted level. The Oil Spill Research program plays a pivotal role in initiating applied research used to support decision-making on methods and equipment to prevent or mitigate oil spills, which is a critical component of the offshore permitting process. The request will address key knowledge and technology gaps in oil spill response, focusing on deepwater and Arctic environments.

Additional details on the President's FY 2016 budget request are available online at http://www.doi.gov/budget/index.cfm.

Sætre has been acting as president and CEO since October, and assumes the role with immediate effect. He has 35 years of experience from Statoil and the oil and gas industry.

"Eldar Sætre was our first choice. The industry and company are facing demanding challenges. Eldar stands out with his long experience and ability to create change. Those are qualities we need in times like these. I am extra pleased that we were able to recruit the next CEO from within Statoil," says Statoil board chair Svein Rennemo.

Eldar Sætre, new Statoil president and CEO. (Photo: Harald Pettersen)

Sætre has extensive operational and financial experience from Statoil. He has been a member of the corporate executive committee since 2003.

He started as chief financial officer, and later became executive vice president for the Marketing, Processing and Renewable Energy (MPR) business area.

"Statoil is well positioned for the future. We have a solid financial platform, and a highly competent organisation. Our industry is currently experiencing large uncertainty. Statoil started the work to improve our competitiveness early. We have our work cut out for us, but we are well prepared to tackle these challenging times," says Eldar Sætre, Statoil's new president and CEO.

"Statoil is changing, but one thing remains firm: My first and foremost responsibility is for safe and secure operations," Sætre says.

"Statoil´s strategy is future oriented and well anchored. Three areas stand out to me as of particular importance: On the Norwegian continental shelf we will strengthen and extend our position. Internationally we will invest where we can create material and profitable positions. We will also strengthen our efforts in the transition to a low carbon society. Competitiveness and sustainability is of critical importance, either in oil and gas production or future projects in renewable energy," Sætre says.

Board chair Svein Rennemo has headed a subcommittee of the board that, following the resignation of Helge Lund in October of last year, has been responsible for the search for Statoil's next CEO.

"We have conducted a comprehensive search. We have evaluated Norwegian and international candidates, both inside and outside the company," says Rennemo. He points to three main challenges for the next CEO:

• Improving Statoil's competitiveness, through a strengthened efficiency and improvement agenda.
•
• Navigating a macroeconomic situation with larger uncertainty and stronger pressure on industry margins.
•
• Increasing the speed of the company's transition towards a low-carbon society.

"The candidate we were looking for needed in-depth knowledge of the oil and gas industry, and a strong understanding of Statoil´s challenges and opportunities. Those are non-negotiables for succeeding in this role," says Rennemo.

When Sætre was appointed as acting CEO, he expressed to the board that he would not be a candidate for the job on a permanent basis.

"We are glad he changed his mind. At the same time, we wanted the benefit of carrying out a broad search. Statoil needs the best candidate," Rennemo says.

"When I came into the job, I fully experienced how inspiring and energising this position is. I enjoy the challenges, and look forward to taking on the job with an even longer perspective," says Sætre.

Sætre.fixed salary will be NOK 7.7 million, whereof 5.7 will be pensionable income. He will participate in Statoil's programs for annual variable pay and long-term incentives, as previously established for the CEO position and described in the board's statement on executive remuneration.

Sætre will keep his existing pension agreement, which entails a right to resign at 62.
"I take on the job with a long-term perspective on the tasks and challenges. I will do it for as long as the board and I agree that I am the right man for the job," says Eldar Sætre.

Eldar Sætre played a key role during Statoil's IPO and the merger with Norsk Hydro's oil and gas division. He was responsible for the updated strategy for marketing of natural gas to the European market. He has also led the improvement work at Statoil's onshore facilities.

With oil prices having fallen more than 50% in less than six months, the OPEC group's reluctance to cut production in order to stabilize prices reflects the threat being posed by production rises from non-OPEC countries, according to research and consulting firm GlobalData.

Matthew Jurecky, GlobalData's Head of Oil & Gas Research and Consulting, states that over 70% of the 12.7 million barrels of oil per day (mmbd) incremental production between 2008 and 2013 came from non-OPEC countries, led by the US, Russia and China.

However, the fall in prices is now slowing production growth among the least efficient producers with the highest development costs, while the market dominance of the most efficient producers with the lowest development costs, predominantly OPEC members, is being reinstated.

Jurecky comments: "Any production cut from OPEC would be motivated by politics rather than economic conditions and would mean voluntarily ceding further market share to less efficient producers.

"While OPEC countries make up only four of the 17 countries that have seen the most dramatic production declines, they represent over 30% of the overall production fall. OPEC is facing diminishing influence on the overall crude space and encountering new competitors, including some former customers, in previously secure markets."

The US, for example, encouraged by its rapid production growth and lucrative international market, is on course to reverse an oil export ban dating back to 1975, which effectively protected OPEC's markets. Similarly, while Africa used to be the source of over 2 mmbd of crude imports into the US, it now exports only 150,000 barrels per day to the country, with the rest going to Asia.

Jurecky continues: "There are game-changers ready to fuel the next wave of reserve additions and production growth, but in terms of low oil prices, exploration activity will cool. The tight oil floodgates that were opened in the US will be contained internationally for the time being, while ultra-deepwater and harsh environment exploration will be delayed.

"However, other world-class opportunities will be dictated by political interests. For example, inviting greater foreign participation in Mexico's oil industry will further challenge the status quo of export markets, as there remains significant easy oil opportunity in this country, even with low crude prices."

Comments provided by Matthew Jurecky, GlobalData’s Head of Oil & Gas Research and Consulting.

Leading classification society ClassNK (Chairman and President: Noboru Ueda) issued approval for Nippon Steel & Sumitomo Metal Corporation's newly developed corrosion resistant steel (NSGP™-2) for use on the upper deck and/or inner bottom of crude oil tanker cargo oil tanks (COT). Following earlier approvals of steels for the inner bottom plating of COTs, this marks the first time that approval has been granted for corrosion resistant steels for both the top and bottom parts of the COT, providing owners and shipyards with a practical alternative to coating systems.

In order to reduce COT corrosion and improve crude oil tanker safety, new amendments to the SOLAS Convention were issued in May 2010 requiring oil tankers over 5000 dwt contracted after January 2013 to adopt appropriate corrosion protection measures for their COTs in line with either the IMO Performance Standard for Protective Coatings for COT (MSC.288(87)) or the IMO Performance Standard for Alternative Means of Corrosive Protection for COT (MSC.289(87)).

As the use of corrosion resistant steels would allow shipyards and owners to significantly reduce the time and cost related to coating application, development of such steels has been a topic of intense research over the past several years. However, differences in the corrosion mechanism found in the top portion of the COT, which is exposed to gases released from crude oil during transport, and the inner bottom, which is in direct contact with the crude oil cargo, have presented a major challenge to steel makers. Nippon Steel & Sumitomo Metal Corporation released the world's first corrosion resistant steel (NSGP™-1) for use on the inner bottom of COTs in 2011. The approval of NSGP-2 marks the first time that class-approved steels for both the top and bottom of the COTs will be available on the market.

Mr. Yasushi Nakamura, ClassNK's Executive Vice President said: "While coated conventional steel meets IMO regulations, the additional costs associated with coating application can be high. This approval of NSGP-2 means that owners now have a practical alternative to meet IMO regulations for COT corrosion protection, and we expect the use of this kind of steel will increase in the future."

The ClassNK approval confirms that Nippon Steel & Sumitomo Metal Corporation's NSGP-2 corrosion resistant steel meets the requirements of the IMO Performance Standard for Alternative Means of Corrosive Protection for COT and can be safely used in the construction of crude oil tanker COTs. The innovative development is expected to significantly lessen the financial costs associated with applying protective coating to conventional steel during ship construction and after going into commission.