The license partners of Gullfaks and Oseberg Area Unit have acquired two new category J jack-up rigs. The rigs will be owned by the licenses and will contribute to increased recovery and extended field life.

Image: Cat J rig illustration.

Samsung Heavy Industries Co. Ltd. and operator KCA Deutag Drilling Norway AS have been awarded the contracts for construction and operation of two category J rigs. Operation start is expected in 2016-2017.

First Application of FlexGuard Technology

Flexlife, a specialist provider of flexible pipe technologies and engineering services, has successfully used its new integrity monitoring technology at Chevron’s Captain field in the UK North Sea.

FlexGuard is an early detection system for possible riser integrity issues, designed to provide continuous real-time data on the condition of flexible risers. With more than 3000 risers in use globally, with this number forecast to rise to 5,000 by 2015, and 35% forecast to suffer some form of outer sheath damage, the cost savings and environmental benefits are immense.  

ABB, the leading power and automation technology group, recently won a $12million order to supply electrical power and propulsion systems for a deepwater pipe laying vessel.

The vessel, tentatively named Derrick Lay Vessel 2000 (“DLV2000”), will be constructed at Keppel Singmarine in Singapore and delivered in 2015 to Hydro
Marine Services, Inc., a subsidiary of McDermott International, Inc.

Hallin Marine, a Superior Energy Services company, announces its return to the Natuna gas field off Indonesia. The project, for a major engineering procedure construction, installation and commissioning contractor, will be executed using the Ullswater subsea operations vessel. Total project value is approximately US$6 million.

“This latest Indonesian contract is scheduled to commence in June with an estimated duration of 30 days,” explains Hallin East Division managing director Rik Zwinkels. “It will centre on an offshore construction campaign to support the laying of 4,200 metres of flexible pipelines and the installation of rigid risers at the platform. The job scope includes  provision of project management and engineering services, saturation diving services, pre-lay survey using Hallin’s’ C-ROV work-class remotely operated vehicle and the pre-commissioning of the pipelines, using the subsea operations vessel Ullswater.

“Hallin has a proven track record in this type of flexible pipeline installation including a number of successful projects with our client. This has generated a positive relationship between the offshore personnel, project team and onshore staff of both organisations. Hallin is also an experienced and trusted partner in the Indonesian market.”

Photo: SOV Ullswater

Fully equipped for wellhead servicing, inspection and construction diving aswell as for remotely-operated vehicle support, the 78 metre long by 20.4 metre wide SOV Ullswater incorporates a 15-man saturation diving system capable of operating at 200 metres depth plus a three-man moonpool-launched diving bell. An integral 22 metre diameter helideck enables fast transfer of crew and operating staff. Up to 120 personnel can be accommodated on board.

Discovered in 1970 by Agip (Italy), the Natuna gas field is located approximately 1,100 kilometres north of Jakarta. It is the largest gas field in southeast Asia. Estimated recoverable reserves total around 46 trillion cubic feet.

Recent state tax reform also spurs Prudhoe Bay working interest owners to evaluate additional $3 billion of development projects

BP has announced it is planning to add $1 billion in new investment and two drilling rigs to its Alaska North Slope fields over the next five years due to changes in the state’s oil tax policy signed into law this month by Gov. Sean Parnell.

These plans call for an increase in drilling and well-work activity, the upgrading of existing facilities and the addition of up to 200 new jobs in the state, giving a boost to both the company’s operations and the state’s economy.

Unique Hydrographic Systems has been contracted by Cairn India for an Oil Spill Recovery project. The first of its kind project for Unique Hydrographic Systems will run over a period of 3 years until April 2016.

Based in Navi Mumbai, Unique Hydrographic Systems provide a complete range of specialized engineering solutions and services for the Marine, Diving, and Survey industries within the region.

Cairn India is one of the largest independent oil and gas exploration and production companies in India. Cairn India and its JV partners account for more than 20 percent of India’s domestic crude oil production. The company has been operating in India for more than 15 years and has played an active role in developing the oil and gas resources.

Aberdeen-based Dana Petroleum has laid the keel for a new $400 million oil production vessel which will produce and store up to 40,000 barrels of oil a day from the North Sea by 2015.

The keel laying of the floating, production, storage and offloading vessel (FPSO) marks a major milestone for Dana’s Western Isles project.

Artist's impression of the FPSO

Wood Group Kenny (WGK) has been awarded a multi-million dollar engineering contract for a major new project in Australia.

GDF SUEZ Bonaparte Pty Ltd (GDF SUEZ), a subsidiary of French energy giant GDF SUEZ S.A., operator of Bonaparte LNG project has awarded WGK a contract for a (pre-FEED) subsea concept definition study for the Bonaparte LNG project.

This is GDF SUEZ’s first LNG project in Australia, which will give the company a further foothold in the gas markets of the Asia Pacific region. The Bonaparte LNG project is made up of the Petrel, Frigate and Tern fields, located in the Timor Sea, which were previously stranded gas fields, but recent technology advances and innovation mean these fields are now more economically viable to develop.

The key to unlocking this gas is floating liquefied natural gas (FLNG). This technology represents a new emerging market for the oil and gas industry, with the Asia Pacific region in the driving seat for the production.

Currently, there are no operational FLNG facilities in the world. However, in recent years a number of FLNG projects have been proposed and are now under development in Australia.

WGK is at the forefront of Australia’s latest subsea and pipeline projects and has been the engineering partner of choice for world-class developments such as Prelude, Equus, Pluto, Browse, Ichthys, Gorgon, Julimar, and Macedon projects, all of which are located on the Australian North West Shelf (NWS) and in the Timor Sea.

The Bonaparte LNG project represents a strategically important contract award for WGK as they are a new client developing their first FLNG project in Australian waters. The subsea concept definition study will be executed by WGK’s Australian team located in Perth, Western Australia.

Phil Brown, Australian Regional Director of Wood Group Kenny, said: "We are delighted to have been awarded this important contract to support GDF SUEZ’s  operations in Australia, which recognises our expertise in subsea engineering, and in particular, FLNG emerging technology.

"This is a new client for us and we hope to establish a long and successful business relationship with them. WGK has been based in Perth for nearly 30 years and in that time we have developed a very strong, local presence."

GE Oil & Gas (NYSE: GE) has signed an $84 million agreement with PEMEX Exploration and Production to supply and to install subsea wellheads for PEMEX’s deepwater and ultra-deepwater drilling projects in the Gulf of Mexico. This marks GE’s largest agreement with PEMEX for the supply of subsea high capacity wellheads.

Independent Body to Provide Collaborative Research, Shared Learning for Offshore Energy Exploration and Development; Fulfills Major Recommendation from Ocean Energy Safety Committee

As part of President Obama’s all-of-the-above approach to domestic energy development, Bureau of Safety and Environmental Enforcement (BSEE) Director James Watson today announced the Bureau is taking steps to establish an independent Ocean Energy Safety Institute (Institute) to further enhance safe and responsible operations across the offshore oil and gas industry.

Australian megaprojects are providing a significant source of optimism amongst oil and gas professionals in the Asia Pacific region, according to research from industry technical advisor, GL Noble Denton.

Australia is listed as the world’s third most attractive investment destination by professionals questioned in the report, entitled Seismic Shifts: The outlook for the oil and gas industry in 2013. No other country in the Asia Pacific region appeared in the report’s shortlist of leading investment destinations for the oil and gas industry.

Seismic Shifts is an annual litmus test for industry sentiment in the year ahead. It was produced with input from a survey of more than 400 senior oil and gas professionals and in-depth interviews with 20 industry executives.

According to the study, multi-billion dollar projects in Australia are fuelling optimism in the oil and gas industry, with 72% of respondents in the Asia Pacific region saying they were highly or somewhat confident for the outlook of their business in 2013.

Among these ventures is Shell’s USD $12bn Prelude project, situated in offshore Australia, which is expected to be the first regional development to implement floating liquefied natural gas (FLNG) technology. The facility is expected to begin operations in 2016.

With a raft of new technologies being developed to operate in increasingly challenging environments, it is not surprising that 37% of respondents to GL Noble Denton’s research expect to increase their spending in research and development (R&D) in 2013.

As Australia’s oil and gas projects become more complex and the levels of investment in them rise, the expectation of a viable return becomes more pronounced. More than half of all respondents (53%) from Asia Pacific believe that rising operating costs are the biggest barrier to growth, well above the global average of 38%.

Richard Bailey, GL Noble Denton’s Executive Vice President for Asia Pacific, said:

“Australia remains a robust market within the in the Asia Pacific region, despite challenges posed by the global operating climate. Our research reaffirms that the country’s megaprojects are drawing huge inward investment to the country.

“However, there are fears that as these projects grow, operational costs will increase substantially. As many Australian megaprojects reach a critical phase in their development, any change in costs could be crucial to future progress. Careful forward planning and effective implementation of work is now more important than ever to ensure these concerns are not realised.”

Download a complimentary copy of Seismic Shifts from: www.gl-nobledenton.com

GL Noble Denton will be exhibiting at the APPEA Conference

Diamond Offshore Drilling, Inc. (NYSE: DO) announced on Wednesday,  an agreement with Hyundai Heavy Industries Co., Ltd. to build a new Moss CS60E design harsh environment semisubmersible drilling rig. The 10,000’ dynamically positioned rig is expected to be delivered after November 2015. Projected capital cost of the unit including spares, commissioning and shipyard supervision is approximately $755 million.

The Company also announced that a three-year drilling contract has been entered into with a subsidiary of BP plc (NYSE: BP) to utilize the rig for initial operations off the coast of South Australia. The initial operating dayrate under the drilling contract is $585,000 per day and is subject to upward adjustment for certain increased operating costs and equipment modifications.

“We are pleased to have been selected by BP for this important work,” commented Larry Dickerson, Diamond Offshore’s CEO. “Our Company, and its predecessors, have been continuously active in Australia since 1982, drilling over 600 wells; far more than any other drilling contractor. We believe that this market-leading experience should enable Diamond Offshore to play a key role in our customer’s exploration efforts and we look forward to this opportunity.”

Mactech Offshore, a leading provider of subsea and offshore machining solutions, has recently received patent-pending status on its Articulating Diamond Wire Saw. The saw is designed for subsea and topside cutting of a variety of materials and projects in the offshore oil industry and utilizes an articulating cutting arm for minimal clearance during cuts.

Photo: Articulating Diamond Wire Saw Decommissioning Gulf Of Mexico Rig

Statoil and its partners are in the process of concluding drilling operations in exploration well 25/11-27 in the Grane Unit. 

Drilled by the rig Songa Trym the well proved an oil column of 20 meters in the Heimdal Formation. The estimated volume of the discovery is in the range of 18-33 million barrels of recoverable oil.

Leighton Offshore has been awarded a contract for the replacement of floating hoses on the SPM system operated by Qatar Gas.

Ras Laffan Terminal Operations, part of Qatargas Operating Company Ltd, operates and maintains two SPM CALM buoys approximately 54 Km offshore from Ras Laffan Industrial City, Qatar.

Leighton CEO Boyd Merrett said "We look forward to working with Qatar Gas to deliver this project. The Leighton Offshore O&M Team has more than 100 years cumulative experience in SPM related O&M works scopes with a strong focus on safe and environmentally sound operating practices."

"Last year Leighton operated and maintained the Iraq Offshore Crude Oil Export system, successfully managing the export of over 140 million barrels of oil. We have the people, systems and equipment to provide innovative solutions for our clients operations and maintenance needs", Mr Merrett added.

Leighton Offshores scope of work includes:

Water Flushing the existing SPM Floating Hoses to make them hydrocarbon free

The removal of existing Floating hoses along with the attachments and accessories,

Dis-assembly of existing Floating Hose Strings.

Inspection and Assembly of new Hose Strings prior to installation,

Installation of New Floating Hose Stings on SPM # 1

Testing and Commissioning of the new Floating Hose Strings

Commissioning support During Loading Operation

NOAA has presented to the U.S. Coast Guard a new report that finds that 36 sunken vessels scattered across the U.S. seafloor could pose an oil pollution threat to the nation’s coastal marine resources. Of those, 17 were recommended for further assessment and potential removal of both fuel oil and oil cargo.

The locations of the 17 wrecks NOAA is recommending be considered for in water assessment and pollution recovery if necessary.

The sunken vessels are a legacy of more than a century of U.S. commerce and warfare. They include a barge lost in rough seas in 1936; two motor-powered ships that sank in separate collisions in 1947 and 1952; and a tanker that exploded and sank in 1984. The remaining sites are 13 merchant marine ships lost during World War II, primarily along the Atlantic Seaboard and Gulf of Mexico. To see a list of the ships and their locations, visit: http://sanctuaries.noaa.gov/protect/ppw/.

The report, part of NOAA’s Remediation of Underwater Legacy Environmental Threats (RULET) project, identifies the location and nature of potential sources of oil pollution from sunken vessels. Knowing where these vessels are helps oil response planning efforts and may help in the investigation of reported mystery spills--sightings of oil where a source is not immediately known or suspected.

“This report is the most comprehensive assessment to date of the potential oil pollution threats from shipwrecks in U.S. waters,” said Lisa Symons, resource protection coordinator for NOAA’s Office of National Marine Sanctuaries. “Now that we have analyzed this data, the Coast Guard will be able to evaluate NOAA’s recommendations and determine the most appropriate response to potential threats.”

“The Coast Guard is pleased to receive these risk assessments from our partner agency NOAA and looks forward to our continued coordination on the matter of potential pollution associated with sunken vessels in U.S. waters,” said Capt. John Caplis, the Coast Guard’s chief of marine environmental response. “Coast Guard federal on-scene coordinators receiving the risk assessments will carefully review the data and incorporate it into their area contingency plans.”

In 2010, Congress appropriated $1 million for NOAA to develop a list of the most significant potentially polluting wrecks in U.S. waters, including the Great Lakes, specifically addressing ecological and socio-economic resources at risk. Those funds were not intended for oil or vessel removal.

NOAA maintains the internal Resources and UnderSea Threats (RUST) database of approximately 30,000 sites of sunken material, of which 20,000 are shipwrecks. The remaining items are munitions dumpsites, navigational obstructions, underwater archaeological sites, and other underwater resources.

Initial screening of these shipwrecks revealed 573 that could pose substantial pollution risks, based on the vessel’s age, type, and size. This includes vessels built after 1891, when U.S. vessels began using fuel oil; vessels built of steel; vessels over 1,000 gross tons, and any tank vessel.

Additional research about the circumstances of each vessel’s loss narrowed that number to 107 shipwrecks. Of those, some were deemed navigational hazards and demolished, and others were salvaged. Most of the 107 wrecks have not been directly surveyed for pollution potential, and in some cases little is known about their current condition.

To prioritize and determine which vessels are candidates for further evaluation, NOAA used a series of risk factors to assess the likelihood of substantial amounts of oil remaining onboard, and the potential ecological and environmental effects if that oil spills. Risk factors include the total oil volume onboard as cargo or fuel, the type of oil, and the nature of the sinking event. For example, a vessel that was struck by multiple torpedoes would likely contain less oil than a vessel that sank in bad weather.

After this third level of screening, 87 wrecks remained on the list developed for the Coast Guard’s area contingency plans. Among this group, NOAA determined that 36 shipwrecks are candidates for a “Worst Case” discharge event in which the shipwreck’s entire fuel oil and oil cargo would be released simultaneously, and recommended that 17 of these wrecks be considered for further assessment and feasibility of oil removal.

Six wrecks are potential candidates for a “Most Probable” discharge event, where a shipwreck could lose approximately 10 percent of its fuel oil or oil cargo. To date, known oil discharges from shipwrecks are typically in the “Most Probable” category or smaller.

The report, including 87 risk assessments, is not intended to direct Coast Guard activities, but rather provide the Coast Guard with NOAA’s scientific and technical assessment and guidance as a natural resource and cultural heritage trustee.

The Coast Guard, as the federal On-scene Coordinator for mitigating oil spills in the coastal marine environment, the Regional Response Teams, and local Area Committees, as established under the Oil Pollution Act of 1990, will review and incorporate the assessments into regional and area marine environmental response contingency plans. The individual risk assessments not only highlight concerns about potential ecological and socio-economic impacts, but also characterize most of the vessels as historically significant and many of them as grave sites, both civilian and military.

Funding for any assessment or recovery operations determined to be necessary is dependent upon the unique circumstances of the wreck. If a wreck still has an identifiable owner, that owner is responsible for the cost of cleanup. Coast Guard officials say that if no responsible party exists, the Oil Spill Liability Trust Fund would likely be accessed.

To view the report, 2012 Risk Assessment for Potentially Polluting Wrecks in U.S. Waters, visit http://sanctuaries.noaa.gov/protect/ppw/.

As America’s maritime first responder, the Coast Guard protects those on the sea, protects our nation from threats delivered by sea, and protects the sea itself. By executing our marine environmental protection responsibilities, the Coast Guard reduces the risk of harm to the marine environment by developing and enforcing regulations to prevent and respond to maritime oil spills and hazardous substance releases.