Statoil will increase the Oseberg Øst field recovery rate by means of a drilling campaign starting up in the summer of 2015.

Oseberg Øst. (Photo: Øyvind Hagen)

On Wednesday 2 July it was made public that Prosafe Offshore has been awarded a contract for the use of Safe Scandinavia in connection with this campaign.

Support vessel Safe Scandinavia is currently a flotel, but it will be modified to enable it to store and treat drilling fluid and cuttings as the drilling operations take place.

Transferring treatment capacity from Oseberg Øst to Safe Scandinavia will enable greater amounts of drilling fluid and cuttings to be stored. The support vessel will help make drilling operations more efficient, and enable longer wells to be drilled than is currently the case. 

The drilling of new wells is an important measure towards boosting recovery rates and doubling the lifetime of the Oseberg Øst field.

"We are expecting to increase the recovery rate on Oseberg Øst from around 20% to up to 30% when we drill the first planned wells. We also have the possibility of drilling more wells and further increasing the recovery rate towards 40%, which is almost double the rate in the plan for development and operation. As operator we are determined to ensure the greatest possible recovery of profitable barrels, and are pleased that the license has taken this important decision," says Kjetil Hove, senior vice president for operations in Statoil's Development & Production Norway business area. 

The contract is of three years' duration with the option of extending the contract, by one year at a time, for four years. Safe Scandinavia will be modified by Westcon in Ølensvåg. 

"We have worked intensively to achieve profitability in this project, which is time critical in terms of recovering remaining resources, and are satisfied at having come up with a good concept. Our solution also provides the possibility of developing the field in the longer term," adds Hove.

Oseberg Øst is the smallest of the platforms in the Oseberg area. It is situated 25 kilometers northeast of the Oseberg field center. Field development includes an integrated drilling, accommodation and production platform with equipment for first-phase processing. The field's reservoirs are layered and there is limited communication between the layers, which makes recovery demanding compared with the other Oseberg fields.

Statoil has a 49.30% license share in Oseberg Øst. The other partners are Petoro (33.6%), Total E&P Norge (14.70%) and ConocoPhillips Skandinavia (2.4%).

CGG announces its recent inauguration of an open subsurface imaging center in Yangon to service and support anticipated growth in Myanmar's oil and gas exploration sector. The new center is the first of its kind to be opened in Myanmar by a major international geoscience company.

The inauguration ceremony was attended by Myanmar's Deputy Minister for the Ministry of Energy, His Excellency, U Aung Htoo, the guest of honor, and over 50 client representatives.

Myanmar's Deputy Minister for the Ministry of Energy, His Excellency, U Aung Htoo, was guest of honor at the inauguration ceremony for CGG's new Myanmar subsuface imaging center.

The aim of the center is to give international and local E&P companies operating in Myanmar onsite access to CGG's industry-leading subsurface imaging technology and expertise. Over time the center will also act as a base from which CGG intends to expand its business in the country.

The new center is equipped with the latest state-of-the-art hardware and CGG's renowned seismic processing software to meet the subsurface imaging requirements of CGG's clients operating in Myanmar. A fast dedicated network link to CGG's Singapore hub is also available for processing large data volumes.

The team of highly experienced native Myanmar geophysicists running the center is expected to expand with the anticipated growth in the Myanmar oil and gas exploration sector. As in other regions of the world, CGG is strongly committed to training and developing local data processing talents in Myanmar.

Sophie Zurquiyah, Senior Executive Vice President, Geology, Geophysics & Reservoir, CGG, said: "With the Myanmar government's recent award of 16 onshore and 20 offshore blocks to international and local oil and gas companies, we foresee a quickening in the pace of exploration activity over the next 18 months. CGG's launch of a subsurface imaging center in Myanmar underlines our commitment to participating in the opening up of Myanmar to the international E&P industry. We intend to build on our new center's strong local presence to help unlock the potential of this emerging market."

BP and the China National Offshore Oil Corporation (CNOOC) announced on Tuesday, a heads of agreement for the supply of up to 1.5 million tons of liquefied natural gas (LNG) per year over 20 years starting in 2019. The agreement was signed in London by BP Executive Vice President, Dev Sanyal and CNOOC Chairman, Wang Yilin, in the presence of UK Prime Minister David Cameron and Chinese Premier, Li Keqiang.

Bob Dudley, BP Group Chief Executive said: "This is a significant deal for BP and China but it also marks a step up in global connectivity in the gas market. This is important for all countries and regions looking at the diversity of energy supply and energy security - it gives BP greater flexibility to respond to the changing energy demands from Europe, Asia and other regions.

"We are pleased to support China's commitment to improving its air quality. This agreement is the first long-term LNG supply deal with China where BP is the sole supplier and it should play a crucial role in enhancing China's energy diversification and supporting its economic growth."

A full commercial contract is expected to be agreed in mid-2014. BP would expect to supply LNG from its global portfolio, using its own LNG tanker fleet and chartered ships delivering gas to a number of terminals in China.

1.5 million tons of LNG is approx 72 billion cu ft of natural gas.

CNOOC is a pioneer of China's LNG industry and the third largest LNG importer in the world with 13 million tons of LNG imported in 2013. Currently, CNOOC operates 6 LNG receiving terminals in Guangdong, Fujian, Zhejiang, Shanghai and Tianjin with further terminals under construction.

BP is active in many of the major LNG producing regions as well as in the main LNG markets. It is involved in LNG projects in Australia, UAE, Indonesia, Egypt, Trinidad and Angola.

The discovery in the Piri prospect is Statoil and co-venturer ExxonMobil's sixth discovery and the fifth high-impact discovery in Block 2 offshore Tanzania.

The discovery of an additional two to three trillion cubic feet (tcf*) of natural gas in place in the Piri-1 well brings the total of in-place volumes up to approximately 20 tcf in Block 2.

"Since 2012 we have had a 100% success rate in Tanzania and the area has become a core exploration area in a very short period of time. We quickly went from drilling one well to a multi-well program, and with Piri-1 we are continuing the success," says Nick Maden, senior vice president for Statoil's exploration activities in the Western Hemisphere.

The new gas discovery was made in the same Lower Cretaceous sandstones as the gas discovery in the Zafarani-1 well drilled in 2012.
The Piri-1 discovery is the venture's sixth discovery in Block 2. It was preceded by the high-impact gas discoveries Zafarani-1, Lavani-1, Tangawizi-1 and Mronge-1, and a discovery in Lavani-2.

Piri-1 was drilled by the drillship Discoverer Americas. The well location is two kilometers southwest of the Lavani-1 well at 2,360-metre water depth. The Discoverer Americas has now moved location and is currently drilling the Binzari prospect in Block 2.

"Additional prospectivity has been mapped and will be tested throughout 2014 and 2015. We expect to drill several additional exploration and appraisal wells and hope that the results from these wells will continue to add gas volumes for a future large-scale gas infrastructure development," says Maden.

Statoil operates the license on Block 2 on behalf of Tanzania Petroleum Development Corporation (TPDC) and has a 65% working interest. ExxonMobil Exploration and Production Tanzania Limited holds the remaining 35%. Statoil has been in Tanzania since 2007, when it was awarded the operatorship for Block 2.

(*1 Tcf =180 million barrels of oil equivalent)

CSA joins a network of firms recognized for geospatial expertise and GIS services

CSA Ocean Sciences Inc. (CSA) announces that through its GeoSpatial Services (GSS) business line it has recently become an Esri (Environmental Systems Research Institute, Inc.) Business Partner, joining a network of some of the most innovative and successful companies employing Esri geospatial technology and services worldwide.

Esri develops and markets its proprietary geographic information system (GIS) software, data, web, and professional services solutions, and the Esri Partner Network was created as a global network of companies employing strategies to deliver cutting-edge geospatial solutions utilizing Esri technology as the foundation of their services. As a member, CSA will be able to leverage Esri's technological and marketplace resources to develop and expand its own business offerings derived from the Esri software platform.

Keith VanGraafeiland, CSA's GSS Business Line Manager, explains, "This partnership is monumental for CSA. It provides a great opportunity as we move forward in crafting our own vision for providing superior quality solutions that capitalize on the support offered by a distinguished corporation such as Esri."

This partnership is a testament to CSA's consistent pursuit of advanced geospatial work and dedication to high-quality science that is the backbone of the firm's success. As an Esri Business Partner, CSA is accredited by a worldwide leader in geospatial technology and is recognized for its technical expertise, unique GIS services and solutions, and commitment to implementing Esri technology for the success of its clients and end users.

For more information on CSA's GeoSpatial Services capabilities, visit our website at www.csaocean.com, call 772-219-3000, or follow us on twitter at @CSA_GSS.

GE Oil & Gas (NYSE: GE) has announced it will provide vital surface equipment to Mexico's national oil company Petróleos Mexicanos Exploración y Producción (PEMEX Exploration and Production) for use at its offshore project in the Ayatsil heavy oil field located in the Campeche Sound, in the Gulf of Mexico.

The multi-year contract includes the installation of GE's surface wellheads and trees in new wells that will be drilled by PEMEX through the duration of the contract. PEMEX is focused on strengthening oil extraction in the Marine Zone, an area located within territorial waters near the coasts of Campeche, Yucatan and Quintana Roo. PEMEX considers Ayatsil to be one of the fields that will help the company recover the historic production of the zone and continue to increase it in the coming years.

GE's surface wellheads and trees will be manufactured at the company's Ecatepec plant in Mexico City, which has been equipped with new high-end manufacturing equipment. Employees at the plant have received the required training to handle this type of advanced technology.
"These surface systems will be manufactured in Mexico, and therefore will have a high degree of local content," said Antonio Ferreira, general manager, Latin America—Drilling & Surface for GE Oil & Gas. "In turn, this will contribute to the national industry's growth that Mexico is looking to achieve."

While the Ayatsil offshore project is GE's largest contract currently underway in the Marine Zone, the company is also working with PEMEX on several other important initiatives. GE recently announced it is teaming up with PEMEX and the Mexico Institute of Petroleum to research and develop technologies to help improve productivity and efficiency in mature fields, develop deep and ultra-deep water projects, and modernize Mexico's energy infrastructure.

Noble Energy, Inc. (NYSE: NBL) has announced that it has reached an agreement with BP Exploration & Production Inc. to acquire 50 percent of BP's interest in 17 deepwater exploration leases in the Gulf of Mexico. Each of the leases resides in the Atwater Valley protraction area, with Noble Energy acquiring a 50 percent working interest in 13 leases and an average 26 percent working interest in four leases.

As part of the transaction, Noble Energy is participating with a 50 percent working interest in the Bright prospect, which is currently drilling on Atwater Valley Block 362 in a water depth of approximately 5,600 feet. The initial well, targeting multiple Upper and Middle Miocene reservoirs, is anticipated to be drilled to a total depth of 13,500 feet. The Company's total estimated gross unrisked resource range (P75 - P25) for the Bright prospect is 90 to 350 million barrels of oil equivalent. In addition to the Bright prospect, there are multiple follow-on exploration opportunities that have been identified on these newly acquired leases.

Susan M. Cunningham, Senior Vice President, Gulf of Mexico, West Africa, and Frontier, said, "The deepwater Gulf of Mexico is one of Noble Energy's core areas and today we have expanded our opportunity set there through the successful capture of a number of attractive and sizeable prospects. We have multiple opportunities for substantial hydrocarbon discovery in the near-term, with the Katmai prospect results expected by our second quarter earnings call and the Bright prospect anticipated to be at total depth by the end of the third quarter. In addition to our exploration programs, we are also currently drilling a second well at Dantzler as we progress multiple major projects toward first production."

Eni Norge AS awards DNV GL a framework agreement for the supply of inspection services to the Goliat platform in the Barents Sea.

The term of the contract is three years, with an option for a two-year extension. The assignment consists of planning and carrying out inspections of static equipment, load-bearing structures and offloading and anchoring systems aboard the Goliat FPSO during its operational life.

Local spin-off effects
The contract, which will help further reinforce the petroleum cluster in Northern Norway, is in line with Eni Norge's ambition to create spin-off effects connected with the Goliat project.

DNV GL has experience of working for Eni Norge from the company's Harstad section, for example in the field of oil spill contingency. In connection with the new agreement for inspection services, DNV GL sees potential for moving personnel to Hammerfest. Also DNV GL subcontractor ApplusRTD will establish a branch office in Hammerfest during the coming year.

The contract underpins DNV GL's established business strategy for growth in Northern Norway and heightened focus on services connected with Arctic operations.

First in the Barents Sea
Goliat is the first field to be developed in the Norwegian sector of the Barents Sea, and one of the biggest industrial projects ever undertaken in Northern Norway. The cylindrical Goliat platform is a floating production, storage and off-loading unit (FPSO), and is full of unique technological systems, specially adapted to conditions in the Barents Sea. The estimated reserves in the field are 174 million barrels of oil and 8 billion standard cubic meters of gas.

Cable and pipe seal manufacturer Roxtec has won a major contract to supply one of the largest and deepest oil sea developments in the North Sea.

Roxtec's UK and Korean operations are working with global petroleum giant BP on its offshore oil and gas project called 'Quad 204' where it is building a new floating, production, storage and offloading (FPSO) unit.

The unit will be located approximately 80 miles west of Shetland, in Scotland.

The Quad 204 is being built by Hyundai Heavy Industries in South Korea, the largest shipyard in the world. It will replace the existing 'Schiehallion' FPSO and include an extension of a subsea system with new and replacement flow lines, new and replacement risers and 14 wells in addition to the 52 existing ones.

Roxtec UK managing director Graham O'Hare (photo) said the firm's deck seals are being used on the hull and top sides of the project and also in the living quarters.

He said: "We are working in partnership with the yard to supply a range of bespoke products which will seal stainless steel tubes. Our seals were chosen because maintenance of them is quick and simple and they will be easy to upgrade in future renovation work.

"Our Lloyds-approved, watertight seals will protect vital equipment on this production platform against salt water ingress which can be so damaging if cables are not properly sealed.

"The new FPSO was designed in the UK, is being constructed in South Korea and hook-up and commissioning will take place upon arrival in the North Sea. As a global company, we can provide support to the project from our bases in the UK and South Korea for the lifespan of this project.

The Quad 204 is designed to operate in harsh weather conditions and, once it has been completed, is expected to produce 130,000 barrels of oil and more than 2 million cubic meters of gas a day.

The facility will also provide storage capacity for more than 1 million barrels of oil with construction due to be completed in summer 2014 and oil production commencing by 2017.

Mr O'Hare said he is seeing Roxtec's products being used more frequently in the oil and gas sector. Currently there are at least forty offshore assets under construction worldwide using Roxtec's sealing solution, and it is pleasing that a number of these are taking place in the North Sea.

"Because we are a market leading company with an international presence, we are perfectly placed to advise and supply these types of projects which involve multiple geographical locations."

YC-based PIRA Energy Group believes that Oil demand growth will improve in 2H14 with stronger economic growth. In the U.S., with crude stock draws expected and improving product demand, stock builds will continue to decline and ultimately become stock draws in the weeks ahead.  In Japan, crude runs were marginally changed while crude imports remained low enough to limit the stock build. Specifically, PIRA’s analysis of the oil market fundamentals has revealed the following:

World Oil Market Forecast

Oil demand growth will improve in 2H14 with stronger economic growth. Iraq’s crude production losses in 2H14 will be made up primarily by Saudi Arabia, but global spare capacity will fall to just 1.4 MMB/D August through November. This is expected to support higher crude oil prices. In 2015, lower Iraq production will again require higher output from Saudi Arabia, but much less so because of weaker demand from higher prices and assumed increases elsewhere in OPEC. Refinery margins will be somewhat weaker because of higher crude prices.

U.S. Stock Building to Slow Down

With crude stock draws expected and improving product demand, stock builds will continue to decline and ultimately become stock draws in the weeks ahead. This past week overall U.S. oil inventories increased. This widened the year-on-year inventory deficit to 25 million barrels with all major categories below last year. Even though PIRA is forecasting a stock draw for next week’s DOE data, the year-on-year inventory deficit will narrow because of last year’s very large inventory decline for this particular week.

Japanese Crude Runs Stay Low, Product Demands Rise

Crude runs were marginally changed while crude imports remained low enough to limit the stock build to less than 1 MMBbls. Finished products drew 2.6 MMBbls. Product demands were all higher, leading to broad based stock draws. Refining margins were little changed but remain soft.

Inventory Build Rate Slows, But Climb in Weeks Ahead

U.S. weekly propane prices strengthened 1.3% to 107.8¢/gal this week on a lower-than-expected stock build. For the second week in a row, the total propane/propylene inventory increase was below three million barrels. The latest data from the Department of Energy showed that total C3 (propane + propylene) stocks increased by 2.43 MMB, below the monster 3.4 MMB+ rate of increase observed in late May and early June. Strong inventory builds over the next few weeks, due to dramatically lower exports, should reduce or eliminate the year-on-year stock deficits caused by this winter’s record conditions.

U.S. Ethanol Prices Tumble

Ethanol prices tumbled last week as record production during the week ending June 13 greatly outweighed the robust demand, declining inventories and rising corn costs. Margins for ethanol manufacture were the lowest since February, partly due to plunging co-product DDG values as China stopped buying this animal feed component from the U.S. on concerns it might contain unapproved genetically modified organisms.

Ethanol Production Plummets

U.S. ethanol production plummeted to 938 MB/D the week ending January from an extraordinary 972 MB/D during the previous week as weather-related issues in the Midwest curtailed operations at several plants. This was the largest week-on-week decline since January.

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.

Secretary of the Interior Sally Jewell and Acting Director of the Bureau of Ocean Energy Management (BOEM) Walter Cruickshank have announced the first step in a robust public engagement process to develop the next schedule of potential offshore oil and gas lease sales.

The publication in the Federal Register of a Request for Information (RFI) and Comments on the Preparation of the 2017-2022 Outer Continental Shelf (OCS) Oil and Gas Leasing Program (RFI) is the initial step in the multi-year planning process and does not identify any specific course of action. Per statute and consistent with previous efforts, BOEM will evaluate all of the OCS planning areas during this first stage.

Today’s publication of a RFI begins a 45-day comment period. Substantial public involvement and extensive analysis will accompany all stages of the planning process, which will take up to three years to complete.

“The development of the next Five Year Program will be a thorough and open process that incorporates stakeholder input and uses the best available science to develop a proposed offshore oil and gas program that creates jobs and safely and responsibly meets the energy needs of the nation,” said Secretary Jewell. “Today marks the first step of engaging interested parties across the spectrum to balance the various uses and values inherent in managing the resources of federal offshore waters that belong to all Americans and future generations.”

The OCS Lands Act requires the Secretary of the Interior, through BOEM, to prepare and maintain a schedule of proposed oil and gas lease sales in federal waters, indicating the size, timing and location of auctions that would best meet national energy needs for the five-year period following its approval. In developing the Five Year Program, the Secretary is required to achieve an appropriate balance among the potential for environmental impacts, for discovery of oil and gas, and for adverse effects on the coastal zone.

“In issuing the RFI, BOEM does not propose to schedule sales in particular areas, or make any preliminary decisions on what areas will be included in the schedule,” said BOEM Acting Director Cruickshank. “Rather, the RFI provides an opportunity for interested parties to submit comments and suggestions about the potential for leasing and to identify environmental and other concerns and uses that may be affected by offshore leasing.”

BOEM seeks a wide array of input, including information on the economic, social and environmental values of all OCS resources, as well as the potential impact of oil and gas exploration and development on other resource values of the OCS and the marine, coastal and human environments.

Using the information received, BOEM will prepare a Draft Proposed Program, followed by a Proposed Program and a Proposed Final Program. Throughout the planning process, BOEM consults with all interested parties and seeks additional public comment. Concurrently, BOEM will prepare a Programmatic Environmental Impact Statement (PEIS) required by the National Environmental Policy Act to evaluate the potential environmental impacts of various OCS oil and gas leasing alternatives under the Proposed Program and to help inform decisions on the Proposed Final Program.

The current Five Year Program for 2012–2017, which expires in August 2017, schedules 15 potential lease sales in six planning areas with the greatest resource potential, including more than 75 percent of the estimated undiscovered, technically recoverable oil and gas resources in federal offshore waters. BOEM has held five sales thus far, including annual auctions in the Central and Western Gulf of Mexico and a single sale in the portion of the Eastern Gulf not subject to the Congressional moratorium.

These five auctions offered more than 60 million offshore acres and leased 4.3 million of those, generating more than $2.3 billion in high bids. The sixth lease sale in August 2014 will offer 21 million OCS acres in the Western Gulf of Mexico. Off Alaska, the current Five Year Program includes one potential sale each for the Chukchi Sea, Beaufort Sea and Cook Inlet planning areas.

BOEM currently manages about 6,200 active OCS leases, covering more than 33 million acres – the vast majority in the Gulf of Mexico. Of those, 1,064 are producing leases, covering 5.2 million producing acres – the highest acreage under production since 2008. In 2013, OCS oil and gas leases accounted for about 18 percent of domestic oil production and 5 percent of domestic natural gas production. This production generates billions of dollars in revenue for state and local governments and the U.S. taxpayer, while supporting hundreds of thousands of jobs.

Under the RFI published today, BOEM will accept comments until July 30, 2014 in either of the following ways: On BOEM’s website. Click on the “Open Comment Documents” link and follow instructions to view relevant documents and submit comments. In written form, deliver to: Ms. Kelly Hammerle, Five Year Program Manager; Bureau of Ocean Energy Management; 381 Elden Street - HM-3120; Herndon, Virginia 20170. Additional information on the process of developing the next Five-Year Program as well as on the current Five Year Program can be found here.

Caterpillar Marine is pleased to announce Cat® power and propulsion offerings have been selected to provide complete propulsion solutions for four ocean-going towing vessels designed by Ulstein Design and Solutions. Each vessel will have 4x 9 M 32 C propulsion engines, rated at 4500 bkW @ 600 rpm. Also onboard each vessel will be 3x Cat C32 auxiliary generator sets rated at 940 ekW @ 1800 rpm as well as 1x Cat C9 generator set to provide emergency power. All four vessels will be equipped with 2x AEM shaft generators rated at 3150 ekW @ 1200 rpm. Each vessel has two Cat BCP1330F main propellers, two BTT625 tunnel thrusters and two BTT419 tunnel thrusters. The MaK and Cat power and propulsion solutions will be delivered over the course of the next year.

Designed to tow large structures such as offshore drilling rigs, ULSTEIN SX157 design vessels offer a 300-ton bollard pull and are capable of operating at full loads for 45 days without refueling. The vessels will be constructed at the Niigata Shipyard in Japan. Cat dealer Pon Power led the Caterpillar efforts on the sale in conjunction with Cat Propulsion. Upon completion of construction the vessels will be owned and operated by ALP Maritime Services, which was recently acquired by Teekay Services.

"This remarkable project is a milestone achievement for Caterpillar Marine as it represents to the global marine industry what we are capable of as a comprehensive provider of not only power solutions but propulsion systems. Through our rigorous project management and close collaboration with Cat dealer Pon Power, we have been able to seamlessly work with Ulstein to equip the vessels with performance solutions you can only get from Caterpillar ," Alexander Kohse, Caterpillar Marine global offshore segment manager noted. "As a result of the synergies we offer amongst our power, propulsion and comprehensive service offerings, shipyards and operators can rely on Caterpillar for more than ever before."

Cat BCP controllable-pitch main propellers have been specifically designed and developed for heavy-duty applications with the pitch setting hydraulic servo cylinder in the hub. The hub lubrication system is a unique oil circulating system with an integrated moisture monitoring system. This is the first hub system in the shipbuilding industry where the moisture content is constantly checked, making it possible to protect the entire propeller system as well as the environment.

Cat tunnel thrusters feature a modular design with modern transmission layout and custom-designed blades to suit each individual application. The complete thruster can be mounted and dismounted in the tunnel (swing-in/swingout design) and can be driven by electric motor or diesel engine. Built to meet the demands of the major classification standards, the thrusters offer customers maximum reliability with minimum downtime and good serviceability.

GE Oil & Gas (NYSE: GE) announces it has received an order for the offshore oil and gas industry’s first 20,000-psi (20-ksi) rated deepwater blowout preventer (BOP) stack and riser systems from Copenhagen, Denmark-based Maersk Drilling. The equipment, due to enter service in the first half of 2018, is being supplied for Maersk and BP as part of their joint Project 20K™ Rigs design program.

BP and Maersk Drilling announced their joint study agreement in February 2013 to develop conceptual engineering designs for a new generation of advanced drilling rigs that will be critical to unlocking the next frontier of deepwater oil and gas resources. Called 20K Rigs, the BP-Maersk Drilling agreement will result in deepwater drilling vessels designed to efficiently operate in high-pressure and high-temperature reservoirs up to 20,000 psi and 350 degrees Fahrenheit.

“GE Oil & Gas is proud to join with Maersk and BP in developing the 20-ksi drilling system technologies to meet new ultra-deepwater production goals,” said Andrew Way, president and CEO of GE’s Drilling & Surface business—GE Oil & Gas. “By drawing upon GE’s technology portfolio and history of operational excellence, we are providing one of the most advanced drilling systems the industry has to offer.”

GE Oil & Gas will design, test and manufacture the new 20-ksi BOPs and risers at the company’s recently expanded Houston Technology Center in Texas.

“GE’s new deepwater BOP system is a key part of Maersk and BP’s strategy to safely expand offshore field development into previously unexplored areas,” said Claus V. Hemmingsen, CEO of Maersk Drilling. “With its redesigned components, GE’s new BOP technology addresses the needs of drilling companies for BOPs that efficiently operate at extremely high pressures.”

“This is a key milestone in progression of BP’s delivery of Project 20K technologies and supports our industry relationships toward the delivery of standard industry solutions,” said Gary Jones, vice president of BP’s Global Wells Organization.

“The 20-ksi drilling system being developed will include a number of new real-time monitoring and condition-based maintenance technologies aimed at improving uptime by reducing unplanned maintenance,” said Way. “From higher performance mechanicals to real-time monitoring and condition-based maintenance systems, this next-generation system can make accessible new offshore drilling frontiers.”

20K™ is a trade mark of BP plc.

BOURBON celebrates delivery of the 500th vessel, placing the group at the head of the world's largest fleet of vessels operated1 for the offshore marine services industry

BOURBON announces the entry into service of the 500th vessel - the Bourbon Evolution 806, the 6th vessel of the 1st series of IMR2 vessels for the offshore industry. BOURBON thus ranks among the world's leading groups for the offshore marine services industry.

This delivery validates BOURBON's strategic decision to focus on achieving economies of scale through standardization and construction in series, thus offering its customers a reliable innovative fleet with optimized service quality: ""We are delighted with the delivery of this 500th vessel, which reflects our commitment to provide the means to continue our development and to best serve the needs of our clients. We are now realizing the fruits of seeds sown over several years when we invested in a series of standardized vessels to achieve a global leadership position in our market."" asserts Gael Bodénès, Chief Operating Officer.

With a fleet of 500 vessels averaging 6.3 years of age, BOURBON operates worldwide with over 11,000 employees providing local services through 28 operating affiliates who ensure commercial and contractual relationships, as well as local technical support on-site, close to operations. By year-end 2015, the delivery of the 34 vessels under construction will make the fleet even larger and better able to serve the most demanding customers.

BOURBON'S standardization policy is best illustrated by the success of its series of vessels:

The Bourbon Liberty series: By the end of 2014, the fleet will include 111 next-generation Bourbon Liberty vessels offering high standards of quality and performance. They have a prove client track record, thanks to their embedded technologies such as the class 2 dynamic
positioning system, backup equipment, cargo capacity and the optimization of fuel consumption.

The Bourbon Evolution 800 series: With the delivery of the 500th vessel, BOURBON currently has 6 Bourbon Evolution vessels in operation (and 4 more under construction) in this 1st series of IMR vessels positioned within the deepwater offshore market. With a class 3 dynamic positioning system, these highly reliable vessels have outstanding maneuverability and their backup equipment guarantees optimum safety.

The seismic support vessel series: BOURBON has pioneered the 1st series of 6 seismic support vessels, custom designed for CGG that allows the provisioning of fuel, equipment and personnel to seismic vessels ensuring the safety of their operations. 4 vessels are already fully operational.

The Bourbon Explorer 500 series: This is a new series of 20 PSV vessels launched in 2014, 4 of which are already in operation. Their cargo capacity is a real added value, as they have been optimized to supply modern drilling equipment with a large carrying capacity of slurry (drilling lubricant) of 1,500 m3. They can also carry up to 50 people, offering the customer additional accommodation capacity on the oil fields.

As part of its growth strategy, BOURBON not only focuses on construction in series, but also on centralizing maintenance and personnel's training via a structured industrial organization.

As part of its growth strategy, BOURBON not only focuses on construction in series, but also on centralizing maintenance and personnel's training via a structured industrial organization.

BOURBON Repair Centers: Pooling the fleet's technical support, carried out by the Group at the local level makes it possible to provide all subsidiaries with the necessary technical specialists and parts inventories, with 6 BOURBON Repair Centers deployed close to their operations.

Standard exchange: Thanks to its Plug & Play standard exchange system BOURBON is able to replace all of its propulsion units with new or reconditioned components, thus eliminating the need for the vessel to remain in the repair center. Standard replacements reduce repair time to the strict minimum.

BOURBON Training Centers: BOURBON's 15 Training Centers contribute to standardizing the company's worldwide training efforts for all crews. As the fleet becomes more and more standardized, specific training programs have been put together to perfectly meet the safety requirements and the quality of service provided to the customer.

The vessels standardization policy and centralization of maintenance allow BOURBON teams to ensure customers operational continuity as well as achieving high levels of technical availability of 94.5% in 2013.

1 Vessels owned or on bareboat charter
2 Inspection, Maintenance and Repair of subsea infrastructure

Royal Dutch Shell plc ("Shell") has announced the sale of a total of approximately 156.5 million shares in Woodside Petroleum Limited ("Woodside") representing a total estimated value to Shell of around US$5.0 billion on an after tax basis.

The sale, which represents 19.0% of Woodside's issued share capital, is through an underwritten sell-down to equity market investors and a selective share buy-back by Woodside.

"This announcement is part of our drive to improve Shell's capital efficiency and to focus our Australia growth in directly owned assets", said Shell Chief Executive Officer Ben van Beurden. "It doesn't change our view of Australia as an important player on the global energy stage, or Shell's central role in the country's energy industry."

Shell Australia's Country Chair, Andrew Smith, added, "Woodside is an important strategic partner for us, through our investments in established projects such as the North West Shelf and growth opportunities such as Browse.

We are pleased we have been able to work with Woodside to find a solution that allows us both to meet our strategic objectives. We continue to see Australia as an important place for us to invest and grow our business."

Shell's subsidiary, Shell Energy Holding Australia Limited ("SEHAL") has mandated two investment banks to sell 78.27 million shares in Woodside, through an underwritten sell-down at a price of A$41.35 per share.

This part of the sale represents around 9.5% of the issued capital in Woodside, with the shares to be sold to a range of equity market investors. The sell-down is expected to complete on 18 June 2014.

Under an agreement with SEHAL, Woodside will also buy-back 78.27 million of its shares from SEHAL at a price of US$34.24 per share.
The buy-back price per share has been split into a dividend component of US$26.29 per share and a capital component of US$7.95 per share, as agreed with the Australian Taxation Office (ATO) in a private ruling. SEHAL will receive franking (tax paid) credits on the dividend component with the effect that no further tax is payable by SEHAL on the dividend component.

Completion of the buy-back will be subject to limited conditions, including consent under a number of Woodside's facility agreements, an independent expert opinion and Woodside shareholder approval. Completion of the buy-back is expected in early August 2014.

After the buy-back and the sell-down have been completed, including cancellation of the buy-back shares by Woodside, SEHAL's shareholding in Woodside will reduce to below 5%. As part of this transaction, SEHAL has committed to retain its remaining shares in Woodside for 90 days from completion of the sell-down, with limited exceptions.

Shell's world-wide LNG equity liquefaction capacity is 26.1 mtpa (million tonnes per annum), with interests in eleven LNG plants. The announced transaction will reduce Shell's equity liquefaction capacity to 25.5 mtpa after the sell-down and to 24.9 mtpa after completion of the share buy-back.

Australia is set to underpin Shell's next tranche of LNG growth, with the Gorgon LNG project (~15 mtpa), where Shell has a 25% interest and the Shell-operated Prelude Floating LNG project (3.6 mtpa LNG + 1.7 mtpa NGLs), in which Shell holds a 67.5% interest.

Shell has further options for the next generation of LNG growth, in Australia, North America and Indonesia.

Shell also continues with an active and successful exploration campaign adding to further options for future development.

Adding to its fleet of 37 conventional and ASD vessels, Signet Maritime Corporation took ownership of its ninth newly constructed tractor tug in six years. SIGNET ARCTURUS, a 105' x 38' Z-Drive, designed by Robert Allan Ltd. of Vancouver, British Columbia was delivered by Patti Marine Enterprises of Pensacola, Florida on May 25, 2014.

SIGNET ARCTURUS is powered by two Caterpillar model C175-16 main engines, each rated 3417 BHP at 1800 RPM. The engines are coupled to two Rolls-Royce US 255 CP azimuth thrusters via carbon fiber shafting, providing thrust for ABS certified sustained bollard pull of 83.45 metric tonnes. All Caterpillar mains and John Deere 6068TFM76 generator engines aboard the vessel are U.S. EPA Tier 3 certified for reduced emissions.

Joseph W. Dahl, Vice President, Signet Maritime said "this technologically advanced newbuild complements Signet's offshore towing, rig escort and subsea expansion." SIGNET ARCTURUS will be joined by her sister, SIGNET POLARIS, a second ocean towing tractor tug, scheduled for delivery later this month from Patti Marine. Both tugs will be based at Signet's Ocean Towing Division in Port Fourchon, Louisiana for service to the offshore energy industry. Further, Dahl said, "Bundling the controllable pitch propeller (CPP) tractor technology with the brute strength of SIGNET WARHORSE tugs will provide our customers the best of both worlds in strength and agility."

The vessel is equipped with fire resistant wheelhouse windows for servicing LNG and drilling platforms to ensure safety of the crew in case of fire hazard. It is USCG Inspected and is certified ABS International Air Pollution Prevention, International Oil Pollution Prevention and International Energy Efficiency for environmental compliance. Deck machinery includes a Markey model DEPCF-52S, 75 HP electric bow winch and Markey model TESD-34, 100 HP electric double-drum towing winch. The bow winch contains 650 feet of 3-inch diameter synthetic line and the towing winch contains 2 ¼" x 2500' tow wire and one 2 ¼" x 1500' tow wire. SIGNET ARCTURUS is ABS Maltese Cross A1, Towing Vessel, Escort Vessel, Fire Fighting Vessel Class 1, Maltese Cross AMS.

With the inclusion of the ARCTURUS and the POLARIS, the Offshore Towing Division has increased its fleet to ten OTVs, equipping Signet to provide energy service companies with high bollard pull towing and marine movements from harbor to offshore throughout the Gulf of Mexico.