With this new global framework agreement in place, Norwegian oil services company Aker Solutions can further improve efficiency and uphold their position as forerunner in advanced technologies for the offshore oil and gas industry.

Commenting on the achievement, Lead Group Category Manager, Gaute Fardal from Aker Solutions, said: “We are pleased to have Lloyd’s Register on board as a new Group Frame Agreement supplier to Aker Solutions. Our expectations to the agreement are highly competitive priced services and further enhanced efficiency in our processes and product solutions.”

The contract gives Aker Solutions access to all relevant services from the Lloyd’s Register Group, including inspection, compliance, certification and advisory/consulting services in areas like risk management/HSEQ, engineering dynamics, asset integrity, drilling, wells and reservoirs.

Inge Alme, Sales Director at Lloyd’s Register said: “Aker Solutions’ efforts in efficiency stewardship are testament to their commercial and environmental commitment. They are demonstrating yet again that their efficiency programs are designed and implemented with high accuracy, completeness and transparency.”

The project builds on Lloyd’s Register’s solid track record of enabling the oil and gas industry to improve efficiency and performance while reducing environmental impact.

The first call off from the contract is already in place: a global project for international quality management system standard ISO 9001 and ISO 14001 (environmental) certification of Aker Solution’s Subsea division. The project will be carried out by LRQA – a division of the Lloyd’s Register Group and a world leading professional assurance services organization specializing in management systems compliance and expert advice across a broad spectrum of standards, schemes and customized assurance programs.

“Of special interest is our process for technology qualifications,” said Alme. “This is an important area for a company like Aker Solutions, where new innovations in areas like subsea processing can be critical for tomorrow’s leading oil and gas operators.”

The Technology Qualification offered by Lloyd’s Register provides a route for companies to provide evidence that their equipment will function within specified operational limits and with an acceptable level of confidence. It gives a step-by-step approach on how to develop and operate new technologies in a safe, reliable and environmentally friendly manner.

“Our approach supports a better way to manage costs and the associated risks of bringing new technology to market,” said Alme.

The framework agreement is valid for 3 years with options for extension for a further 2 years.

Marred by corruption and market turmoil, Petrobras, the operator of key pre-salt projects for Brazil’s oil production over the next five years, is one of many Brazilian oil and gas companies facing a difficult financial future in the short term, according to an analyst with research and consulting firm GlobalData.

Adrian Lara, GlobalData’s Senior Upstream Analyst covering the Americas, says that production from pre-salt fields will contribute an estimated 65% of Brazil’s oil production by 2020, while there are 11.6 billion barrels of recoverable reserves from planned pre-salt projects.

This production depends on timely deployment of Floating Production Storage and Offloadings (FPSOs), pace and number of wells drilled, and productivity of the pre-salt wells. However, the fact that Petrobras is more than $100 billion in debt makes growth prospects very slim.

Lara elaborates: “Petrobras has seen its capital investment and production forecast negatively impacted by the carwash corruption scandal, one of the largest cases of fraud in the history of oil and gas. Consequently, it has been forced to delay its development plans and has proposed budget cuts for the next two years.”

The analyst adds that Petrobras’ recent revisions to its production plans, forecasting 2.8 million barrels per day (mmbd) by 2020, 1.4 mmbd less than 2014, will be adjusted further. This is due to more recent Petrobras CEO statements indicating less capital expenditure and a larger divestment strategy. One key change in the investment plan for pre-salt production has been a significant reduction in the number of FPSOs brought online by 2019.

Lara continues: “Developing pre-salt assets remains vital in providing much-needed cash flow for Petrobras. However, most of these require significant additional investment, which will be hard to find considering the company’s current position.”

Although Petrobras rejected the idea of partnering with other operators in developing pre-salt resources, recent debates and announcements in the media, congress and statements from the ministry of finance and Petrobras’ CEO indicate that a discussion about changing these conditions might be feasible.

Lara concludes: “Diminishing the local industry role and Petrobras’ leadership in the development of the pre-salt resources in favor of foreign oil and gas companies would certainly face opposition from workers' unions and require substantial negotiation between key political parties. However, this might be the necessary trade-off to create the potential production growth from pre-salt areas.”

Statoil and COSL have received confirmed information from the police that one person has died as a result of the breaking wave that hit the drilling rig COSL Innovator on Wednesday, December 30, 2015.

Two other people were injured and are receiving medical treatment ashore. The rig is now heading to shore under its own power, while evacuation takes place.

COSL and Statoil were notified at 5 pm on Wednesday 30 December that three people had been injured when a breaking wave hit COSL Innovator. Statoil and COSL have mobilized their emergency response organizations.

COSL Innovator (photo) is under contract to Statoil at the Troll field in the North Sea, west of Bergen. The rig had been taken off the well as a result of the bad weather before the incident occurred. The breaking wave also caused some damage to the rig's accommodation module.

The injured persons have been flown to shore by Sea King helicopter from the Joint Rescue Coordination Centre and by one of Statoil’s own rescue helicopters.

Statoil is assisting COSL with evacuation of the rig down to the safety crew. Evacuees are being flown ashore.

A phone number has been established for the next of kin in connection with this incident.

For COSL: +47 952 69 495 (new number)

Statoil has awarded maintenance and modification agreements worth NOK 24 billion for the company’s installations on the Norwegian continental shelf (NCS) and for the onshore plants at Sture, Kollsnes, Kårstø and Melkøya.

Competition agreements for more complex modification services have also been awarded.

Maintenance and modifications are essential for safe and efficient operation of Statoil’s offshore and onshore installations. New compensation formats have been prepared to encourage continuous improvement and higher productivity.

Maintenance work on the Norne FPSO. (Photo: Rune Solheim)

“These awards will strengthen the NCS competitiveness and stimulate long-term activity and value creation. We look forward to cooperating with the suppliers, and jointly achieve lasting and sustainable improvements with regard to efficient production, safe operation and high integrity at our plants,” says senior vice president for operations technology of Development and Production Norway (DPN), Kjetil Hove.

This time the company decided to split the whole portfolio in two: main contractor agreements and competition agreements. The key supplier agreements portfolio has an estimated total value (including options) of NOK 24 billion. The contract period is six years plus a four-year extension option, and starts in the first quarter of 2016. Remaining options of existing maintenance & modifications agreements will not be exercised.

The main contractor agreements have been awarded to the following companies:

The competition agreements portfolio covers a period of 10 years that starts in the first quarter of 2016. The agreements form the basis for individual project competitions where one, two or more suppliers are invited to participate.

The competition agreements have been awarded to the following companies:

The awards reveal that the company is continuing its important improvement effort together with familiar maintenance & modification suppliers, but they also present a new element as a new player is included in the agreement portfolio.

“The procurement we have made is part of the effort of creating a more competitive industry. The importance of making continuous improvements and changing our working methods has run as a thread through the whole process. In the time ahead we will work closely with the suppliers to ensure that this work is pursued when the agreements enter into force,” says senior vice president for procurements in Statoil, Jon Arnt Jacobsen. A comprehensive procurement process has been carried out, where Statoil has worked closely with the bidders to find the best solutions based on evaluations of health, safety and environment (HSE), technical and commercial criteria.

Forum Energy Technologies, Inc. (NYSE: FET) has announced that its AMC Engineering product line has been awarded multi-million dollars worth of significant new orders within just one month.

The multiple orders are for the manufacture and supply of its industry-leading fully rotational torque (RT) bucking unit with the first delivery scheduled for Q1, 2016. They have been purchased by three of the largest multi-national oil service companies and will enable improved and increased tool make up capabilities at locations in the Middle East, South America and Caspian regions.

The RT bucking machine (RT) is a self-contained, free-standing hydraulically powered unit designed for fast and accurate make up and break out of premium and regular threaded connections for tubular equipment up to a maximum torque of 200,000 foot-pounds (ft lbs).

Plant manager at Forum AMC Engineering, Darren Bragg, said: “To win a series of orders from a number of leading international companies is a major endorsement of our products and our Aberdeen-based manufacturing and export capabilities, particularly in the current challenging market conditions.

Forum AMC wins multi-million dollars worth of new orders for its industry-leading rotational torque unit.

“It also demonstrates the strong relationships we have built with our customers as well as introducing a new customer to our equipment. To continue to win these large capital investments is great recognition for our team effort and reinforces a strong and encouraging start for 2016.

“We understand more than ever that budget is hard to come by and that, as part of this, understanding our customers’ requirements and delivering solutions on time, on budget is paramount. Choosing Forum’s equipment at a time when every budget item is being especially scrutinized by companies is a testament to the confidence in the reliability of our equipment.”

Forum also announced that from January, 2016, the manufacture of the company’s PQuip Mud Bucket product will be transferred to the Forum AMC facility. This joins the Tautwire product line that was moved to the Aberdeen location earlier in 2015. This further reinforces the continued recognition of the skills and experience that the team at Forum’s AMC facility provides.

Forum Energy Technologies is a global oilfield products company, serving the subsea, drilling, completion, production and infrastructure sectors of the oil and natural gas industry. The company’s products include highly engineered capital equipment as well as products that are consumed in the drilling, well construction, production and transportation of oil and natural gas. Forum is headquartered in Houston, TX with manufacturing and distribution facilities strategically located around the globe.

Forum AMC is an internationally recognized manufacturer of torque equipment (bucking machines). Its market-leading equipment is in operation around the world with most of the major oil and gas service companies in Africa, North and South America, Canada, Europe, Far East, Middle East and Russia.

Forum AMC has been delivering torque solutions to the market for over 25 years with every unit being designed and manufactured to meet and exceed our customers’ requirements. The business’s technical engineers are available anywhere in the world for installation, servicing, training and calibration while Forum AMC also carries out and supplies service, calibration, repairs and modification on non-AMC equipment.

NYC-based PIRA Energy Group believes that Brent crude prices continue to struggle and will remain weak in 1Q16. In the U.S., a surprising U.S. crude stock build leaves overall inventories flat. Specifically, PIRA’s analysis of the oil market fundamentals has revealed the following:

European Oil Market Forecast

Brent crude prices continue to struggle and will remain weak in 1Q16 with Iran’s return, refinery maintenance, and an ongoing stock overhang of nearly 500 million barrels above normal levels. Demand growth and slowly declining non-OPEC crude production will stabilize stocks in 2016 but not substantively reduce them until 2017. Gasoline cracks will stay unusually firm for the winter due to relatively tight inventory coverage which will persist into next year. That will underpin a strong 2016 gasoline season. Naphtha cracks will tag along for the ride at least in the first quarter. For middle distillates, stocks are very high and will stay well above average next year, capping distillate cracks.

Late Month NYMEX Rally “Rescues” Henry Hub Cash Prices

Notwithstanding the holiday-impaired liquidity in the futures and cash markets, the long-awaited arrival of more seasonable weather that also impaired production, prompted an outsized ~70¢ rebound in the NYMEX nearby futures contract that resulted in a HH Bidweek price of ~$2.37. Amidst the two-way volatility affecting Henry Hub (HH) this month, basis differentials were often distorted, especially out West where weather conditions happened to also be relatively cold in contrast to the rest of the county.

Western Grid Market Forecast

Despite a strong finish tied to cold weather and soaring gas prices late in the month, December spot on-peak energy prices are expected to average flat to slightly below November levels. Eastern U.S. weather was much warmer than normal and with gas storage already at high levels, gas prices plunged below $2/MMBtu. In the Northwest, the return to a more typical seasonal runoff pattern is expected to support heat rates in the mid-high 9,000s during Jan/Feb. Southwest heat rates have been revised down in response to somewhat improved California runoff prospects, the likelihood of incremental energy from the Northwest and weak December results. A tightening gas market during 2H16 and 2017 combined with higher renewable generation associated with tax credit extensions will maintain downward pressure on heat rates through 2017.

2016 Offers Little Hope of a Recovery in Coal Pricing

Coal prices remained on a downward trajectory this month, with weaker oil prices and a stronger U.S. dollar pushing the curve lower. While there have been some signs that fundamentals are recalibrating (weaker Russian exports, promises of supply cuts in Australia, and the reduction of the import tariff in China), PIRA continues to assert that there is limited upside for pricing over the next year. Substantially milder than normal weather in Europe and continued year-on-year declines in imports from China and India will weigh on balances and pricing over the short-term.

Tighter PJM REC Markets Now, But More Supply after 2018

The slowdown of growth in qualified renewable capacity and generation together with rising requirements will support PJM RECs in the near to midterm. The extension of the PTC/ITC boosts incentives for new renewable build, which along with major transmission projects will flood the market with supply, driving down REC prices after 2018. Post- 2020 carbon policies will offer additional incentives, so REC price support would need to come from tighter RPS policy requirements.

U.S. Ethanol-blended Gasoline Manufacture Soared to a Two-month High

The week ending December 25, ethanol inventories declined for only the second time in nine weeks. Ethanol output rose 19 MB/D from the prior week to 992 MB/D.

New Year, Same Story

Ags are suffering from a bit of a New Year’s hangover with HRW making new contract lows overnight, despite the flooding and unfavorable Midwest weather of late, while SRW sits within 5 cents of its contract low, March corn within just a few cents, and soybeans tread water.

Global Equities

Global equities were modestly lower on the week. In the U.S., the best performers were consumer discretionary and utilities. Energy and materials were the laggards. Internationally, only Japan moved higher on the week, with EEM, China, and BRICs all underperforming. For 2015, the global market fell 3.8%, with Asia outperforming, and down only 1%. Europe was near the global average, down 3.9%, while the Americas were down 5% and weighted down by poor performance in Brazil, Canada, Mexico, and Argentina. The U.S. market eased only 1.8%.

Surprising U.S. Crude Stock Build Leaves Overall Inventories Flat

With a rebound in crude imports and domestic crude supplied, crude stocks posted an unexpected build, and finished the last full week of the year about 102 million barrels higher than last year. The three light product stocks built, while the rest of the product barrel had a large draw, keeping the overall commercial stock profile flat. The impact of the Christmas and New Year’s holiday period should be felt primarily in data for the week ending January 1, with weaker gasoline and distillate demand. Crude runs moved up this week, and we expect them to move up again for the week of January 1, but then begin to fall, as refinery maintenance picks up during January.

Japan EG Losses Set to Accelerate on Eve of New Australia/ US Contracts

The imminent restart of two large scale nuclear reactors at Japan’s Kansai Takahama facility sends further shivers through Asian LNG markets and will serve to weaken the current spot price floor, which already is at 18 month lows.

Hydro Shortfall Limits Winter Downside

German exports surged to a new maximum of 9.3 GWs on average during December. We expect German exports to stay strong toward the Alpine region for the balance of the winter, given the sizable hydro deficit. France remains more exposed to bearish gas prices, but hydro/weather risks could still be countering this bearish impact – at least for 1Q 2016. We expect a further narrowing of the France-Germany spreads in 2Q and 3Q 2016.

Slight Ease on Financial Stress

On the holiday shortened week, financial stresses appear to have eased a bit. The S&P 500 closed higher on a weekly average basis, while high yield debt (HYG) and emerging market debt (EMB) indices also improved slightly. However, the S&P 500 was fractionally lower for the year. Total commodities posted another modest gain for the week and non-energy now appears rather flat for the past several weeks. The U.S. dollar looks mixed, and the U.S. 2-year yield continues to trend higher as the markets digest the higher Fed target interest rates.

U.S. Ethanol Prices Followed a “V-Shape” Pattern

U.S. ethanol prices fall early during the week ending December 25 before rebounding. Manufacturing margins worsened as average product prices declined more than corn costs.

E-Commerce Impact on U.S. Gasoline and On-Highway Diesel Demand

E-Commerce has been gaining market share from brick and mortar stores. We present evidence that as these on-line retailers grow and set up distribution centers closer to their end users, short haul truck distances traveled to deliver their clients' merchandise decline. The logistical efficiencies achieved may reach as far as long haul traffic with the combined effect implying reduced diesel consumption over earlier retail practices. By contrast, gasoline demand appears to be unaffected by E-Commerce.

Gas Flash Weekly

Thursday’s EIA reported 58 BCF storage draw was slightly on the lower end of an exceptionally wide outlook ranging from the high-teens to high-70s BCF. Yet, this week’s draw was strong in comparison to the prior-week and year-ago draws. The response of the newly minted February contract was initially muted following a pre-release rally, which had raised the price to ~$2.31 from yesterday’s $2.21 settlement. As forecasts for cooler weather persisted, the nearby contract settled at ~$2.34/MMBtu. This Gas Flash Weekly includes an update to our 2016 full-year price forecast.

U.S. October 2015 DOE Monthly Revisions: Demand and Stocks

DOE released its final monthly October 2015 (PSM) U.S. oil supply/demand data today. October 2015 demand came in at 19.35 MMB/D, which is 134 MB/D higher than what PIRA had carried in its monthly balances. Compared to the DOE weeklies, total demand was lowered 284 MB/D. Even so, all of the major products were revised higher, while “other” was lowered. October 2015 versus October 2014 (PSA) demand declined 341 MB/D, or 1.7%. Kero-jet was the strongest performer, +7.1% (+105 MB/D) versus year-ago. Gasoline also outperformed the barrel average by gaining 102 MB/D, or 1.1%, but distillate was down over 6%. Compared to the weekly preliminary data, DOE raised commercial stocks 11.1 MMBbls, with products being raised 7.9 MMBbls.

Upward Revisions to Oklahoma Production and Record Crude Stocks in October PSM

The crude balances in the October 2015 PSM had upward revisions to Oklahoma production even as current production trends downward. October 2015 monthly crude stocks set a new record high.

Seven Issues Driving European Gas Fundamentals in 2016

Seven key issues will drive European gas fundamentals in 2016. At the top of the list will be coal-gas switching economics, along with the evolving role of European gas storage as a global force for balancing. Critical decisions made by Russian gas exporters will have the potential to impact gas prices from the Utica Basin to Tokyo Bay. The direct interaction between Russia pipeline gas and U.S. LNG in Europe will be met by a market that will struggle to grow beyond a correction for weather and the initial stages of recovery for gas use in the power sector.

Saudi Arabia Raises Domestic Fuel Prices

Saudi Arabia has just enacted an increase in domestic fuel prices, which will cover gasoline, diesel, and kerosene, potentially along with other fuels. Even with the increase, Saudi will still have among the lowest domestic fuel prices in the world. Heavy state subsidies in a time of falling oil revenues have put an increased burden on its fiscal balances. According to the IMF, the Saudi government net fiscal balance has gone from a surplus of 5.8% of GDP in 2013 to a 21.6% deficit of GDP in 2015. The Saudi currency has been pegged against the dollar since 1987 at 3.75 SAR/USD. Recent appreciation on a trade-weighted basis might argue for a devaluation versus the peg, but the negative implications would be significant, and as a policy option, appropriately rejected.

Saudi Arabia Increase Methane and Ethane Prices

On Monday, officials said the government ran a record deficit of nearly 367 billion Saudi riyals ($98 billion) this year, or about 15% of gross domestic product, as low oil prices depressed revenue, pushing it to cut planned spending by 14% in 2016 amid expectations that income from oil sales will remain under pressure. Shortly after unveiling the budget for 2016, Saudi Arabia increased domestic fuel prices in a move that suggests that the government is willing to adopt some difficult measures as it deals with cheap oil. Gas prices for local power generation increased on Tuesday and ethane, the main feedstock for petrochemicals, rose more than 100%.

December Weather: The U.S., Europe and Japan Warm

December was 25% warmer than the 10-year normal for the three major OECD markets with a loss of 1203MB/D of oil-heat demand versus normal. The markets were 28% warmer on a 30-year-normal basis.

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.

The companies will through a joint work group identify opportunities where they can create value for customers by combining Aker Solutions' capabilities in subsea products and technologies with Saipem's assets and expertise in engineering, procurement, construction and installation of subsea infrastructures.

"We will team up with Saipem on targeted projects, providing integrated solutions that will enable our clients to make the most of their upstream investments, reduce development time and lower operating costs," said Luis Araujo, chief executive officer at Aker Solutions.

The companies will engage with clients from the initial concept and design phase to promote total system engineering, providing the best solutions for construction, operations and maintenance. The collaboration will develop and manage all interfaces between subsea production systems and subsea umbilical, riser and flowline systems (SURF) as well as provide services over the lifetime of a field.

"Thanks to our cooperation with Aker Solutions our clients will have access to a wealth of complementary capabilities and resources from the earliest phases of the projects," said Saipem Chief Executive Officer Stefano Cao. "This joint effort will support efficient subsea development."

Wood Group has been awarded a main contractor framework agreement worth approximately $400 million to deliver maintenance and modification services to four Statoil installations on the Norwegian continental shelf (NCS).

Wood Group Mustang Norway will provide this support for the Snorre A&B, Grane and Visund facilities over the term of the six year contract, with the option of a further four-year extension. The agreement is expected to create approximately 250 jobs.

In addition, Wood Group Mustang Norway has been awarded a competition agreement, which will enable the company to tender for individual projects for Statoil operated onshore and offshore installations in Norway. This agreement covers a period of 10 years that starts in the first quarter of 2016.

Otto Søberg, president of Wood Group Mustang Norway AS, said: “This is a breakthrough for Wood Group on the Norwegian Continental Shelf and we look forward to building on our existing relationship with Statoil. The work secured will call for a considerable build-up of the offices in Bergen and Stavanger and we will undergo a recruitment campaign to enhance our key talent and bring the best expertise to the projects.”

Wood Group Mustang Norway has been active on the NCS for more than 20 years. The company has been working closely with Statoil on their Statoil Technical Efficiency Programme (STEP). These awards follow the results achieved by Wood Group Mustang Norway on ongoing modification projects for Statoil such as Gullfaks Rimfaksdalen and Kollsnes.

Tellus is Robertson’s strategic new ventures tool, designed to help exploration geoscientists rapidly understand petroleum geology at regional, basin, and play scale. It is the industry’s definitive exploration database, incorporating a comprehensive tabular database of petroleum systems data, with play-fairway maps delivered in industry-standard ArcGIS® format. Tellus helps explorers to understand the key play variables, trends, extensions, or missed potential in a consistent and easy-to-digest format. Tellus is complemented by Frogi, an extensive geochemical database and interface containing rock, oil, gas, and seep analyses from across the globe.

Example play fairway map showing distribution of fields, reservoir, seal and source kitchens linked to the play. Tellus provides rapid evaluation of proven and potential play elements, concepts and risks for over 2400 plays in 430 basins worldwide.

The 2015 Release 2 update offers significant technical and scientific improvements driven by client feedback and leveraging expertise from across CGG GeoConsulting. The new release includes geological model updates to every major oil- and gas-producing region of the Tellus world, with particular focus on exploration hotspots and emerging markets.

A completely revised suite of over 250 paleogeographic maps is now available across all 32 regions of the Tellus world. These new maps represent the latest scientific thinking, and are based on Robertson’s industry-leading Plate Wizard™ deformable tectonic model and Merlin⁺ source and reservoir facies prediction project. For the very first time, Tellus paleogeographic maps are based on a huge database containing thousands of control points for every time-slice, and have been drafted in consultation with technical experts from across CGG GeoConsulting.

Another important add-on upgrade to the Tellus world is the availability of a newly completed North Sea region. The North Sea remains an active region for oil and gas players due to attractive fiscal conditions and well-developed infrastructure. The Tellus North Sea region focuses on areas of remaining exploration potential, including the East Shetland Platform, Norwegian–Danish Basin, Ringkobing Fyn-High and the Mid North Sea High, as well as documenting and mapping petroleum systems of the Northern North Sea, Moray Firth, Central Graben and Southern North Sea. Tellus: North Sea draws on 20 Robertson multi-client studies in the region, Robertson’s Target (unique play evaluation tool), Global Fields, and Frogi databases, as well as public domain data.

Mark Weber, Senior Vice President of CGG GeoConsulting, said: “Tellus and Frogi are proven tools in Robertson’s integrated portfolio of global and regional multi-client geological products, and Tellus is relied upon by Independents, NOCs and Supermajors operating across the globe for fast assimilation of geological information, or for a second opinion on the petroleum potential of a region, basin, or play. With the capabilities of both tools being regularly enhanced to meet client requirements and benefitting from the latest geological insights of our GeoConsulting experts, they play an essential role in the screening toolkits of New Ventures groups and explorationists to inform and shorten their decision-making process.”

2015 was a tough year. Spending and headcounts have been slashed across the industry and the spectre of bankruptcy is an all too common concern. Recent trends in commodity prices have not helped. Late December saw Moody’s downgrade its price forecast for 2016 by 17% and a further dip in the price of oil – Brent falling to the lowest level since 2004. Producers have continued to produce and new Iranian output may result in even more oversupply. By all accounts, 2016 is shaping up to be just as challenging as 2015. Where does this uncertainty leave the industry and what lies ahead?

If prices remain low, one thing is clear – 2016 is lined up to be a year of consolidation. Cost savings are required to ensure future developments are economically viable. Project optimization and supply chain improvements will be key in reducing costs. However – at current prices – industry consolidation will play a large part in ensuring the cost-effective development of projects.

In all likelihood, 2016 will see the completion of two blockbuster E&P and OFS deals – with Shell and Halliburton acquiring BG and Baker respectively. Further M&A activity is expected – those with strong balance sheets are in line to benefit from a wealth of distressed assets. This is particularly clear in the drilling sector – since 2014’s drop, firms have relied on credit markets to keep rigs going. With prices below $40, this option will dry up, forcing a search for partners. 2016 looks to be a difficult year for all involved. Yet, for those well positioned, there is likely to be a plethora of opportunities.

Churchill Drilling Tools, a specialist engineering company delivering market-leading and innovative drilling solutions to the global oil and gas industry, has announced the opening of its new Dubai office following international success and growing demand for its technologies.

Churchill will officially open its new Dubai office at the beginning of January 2016 to enhance its support structure in the Middle East, North Africa and Asia Pacific regions. This new hub will be key to the perpetual success and growth of the company as it continues to expand internationally.

“The focus for Churchill Drilling Tools going into 2016 is to be the leading provider of activated technology within the string in all our operating regions as we continue to expand and break into new markets,” said director Mike Churchill.

“This growth will bring with it the benefits that Churchill’s tools can provide, alongside the experience and expertise of a company focused on innovation to deliver excellence, to the international market.”

The company is enjoying a record business year at its Houston base, which significantly encouraged the investment into the new facility in the Middle East. Developing and strengthening of Churchill’s Houston operations saw a significant increase in revenues, as the benefits of investment in its own offices and workshop facility in the US enabled it to greatly improve all aspects of its export business. Churchill aims to replicate this success at its new base in Dubai.

Heading the Dubai office is general manager Nicholas Kjaer, who has more than 12 years’ experience in energy management roles, of which 10 years have been based in the Middle East. He has been involved in drilling operations, on projects spanning from the Middle East to China, Russia, Norway and Denmark.

Nicholas said: "It is exciting to be part of a company that keeps moving from success to success by bringing innovative technology to the market. The launch of our Middle East office will ensure we can cater even more efficiently to our clients here in the region.”

Mike Churchill added: “Following our achievements this year, we are pleased that we are able to enhance our global footprint. It is also an extremely exciting time for our employees, as we go from strength to strength and continue to deliver superior value to our clients across all regions.

“The success and growth of our activities globally has also led to a significant recruitment drive. Several new roles have been created in the company within last six months to cater for the expansion in exports alone, and we would hope see that number increase in 2016, as we look to outperform last year’s figures.”

Deepwater mooring specialist, First Subsea Ltd, has completed the installation of subsea mooring connectors for Anadarko Petroleum Corp's Heidelberg truss spar platform moored in 5,310ft (1,620 m) of water in field development in the Gulf of Mexico.

The 23,000-ton spar has been moored by nine Series III Ballgrab ball and taper mooring connectors attached to polyester mooring lines. The connector's male mandrels are manufactured in compliance with American Bureau of Shipping (ABS) 2009 Approval for specialist subsea mooring connectors.

Ball and taper subsea mooring connectors (SMCs) offer a two-part mooring. A connector receptacle is preinstalled, attached by ground chain to a mooring pile. When the spar arrives on-station the ball and taper mooring connector is simply attached to the mooring line and lowered into the receptacle to complete the mooring line connection.

“Spar mooring is something of a specialty for Ballgrad SMCs,” says John Shaw, managing director, First Subsea. “The connectors offer a quick mooring line installation with significant time savings for the overall mooring installation.”

The Heidelberg spar will have a capacity of more than 80,000 barrels of oil and 2.3 million cubic meters of natural gas per day.

First Subsea is the first manufacturer of offshore mooring connectors to achieve ABS type approval for the design and manufacture of large-scale forgings over 500mm in diameter.

M-I SWACO has developed a new technological solution and has now been awarded a contract with Statoil that is valued at around NOK 500 million, including options.

Statoil has not used this type of technology on supply vessels before but M-I SWACO has used the technology on its own vessels. This is the first time that the Schlumberger company M-I SWACO has commercialized the technology.

This is what the M-I SWACO tank cleaning module looks like.

"The solution increases the safety of our personnel as there is no need to enter the tanks and we reduce both time use and costs," says Jone Stangeland, vice president of logistics and emergency preparedness at Statoil.

The supply vessels transport chemicals in tanks below deck. When the tanks are emptied offshore they must be cleaned before being used for other assignments.

Manual tank cleaning is carried out by emptying the tanks of residual volume before personnel enter them, erect scaffolding and rinse with water and chemical cleaning agents.

Manual tank cleaning normally generates a high volume of waste and a typical clean can involve 10–15 cubic meters per assignment.

"By cleaning the water in the same operation, the volume of waste is reduced significantly," says Stangeland.

The new system will fit onto a lorry, and once the system has replaced manual cleaning, vessels will spend much less unproductive time while docked in connection with tank cleaning.

They will also be equipped with a marine generator that can be used instead of the main engine, when the vessel is docked.

"We have also specified strict requirements for NOx emissions and all new vessels are equipped with trip computers so that the crew can monitor fuel consumption, and adjust the speed and log fuel consumption more efficiently," says Stangeland.

Subsea 7 S.A. (Oslo Børs: SUBC, ADR: SUBCY) announces the award of a sizeable⁽¹⁾ contract by Burullus Gas Company S.A.E. for the platform extension and tie-in on the first phase of the West Nile Delta development of the Taurus and Libra fields by BP, offshore Egypt.

Engineering and project management work will commence immediately and will be undertaken at Subsea 7's Cairo office and Subsea 7's Global Projects Centre in London. Fabrication of the deck extension and spools will be carried out at the Petrojet Maadia yard near Alexandria. Offshore work is scheduled to commence in the second half of 2016 using Subsea 7's Rockwater 2 as the main hook-up and accommodation vessel with Seven Borealis performing the offshore lift of the platform extension and the heavy construction vessel, Seven Arctic, installing the umbilical.

Oeyvind Mikaelsen, Executive Vice President Southern Hemisphere and Global Projects said: "This contract recognizes the value we bring to our clients through early engagement to engineer, design and deliver cost-effective solutions for complex field developments. We look forward to expanding our presence in Egypt and building a long, successful and collaborative relationship with Burullus."

(1) Subsea 7 defines a sizeable contract as being between USD 50 million and USD 150 million.

Lockheed Martin (NYSE: LMT) selected SeaRobotics Corporation as the Original Equipment Manufacturer (OEM) for its Marlin® Mk3 Autonomous Underwater Vehicle (AUV) designed for survey and inspection applications in depths up to 4,000 meters.

Autonomous Underwater Vehicle Marlin® Mk3 is designed for commercial surveys and inspections

Designed for deepwater applications such as pipeline inspection, deepwater survey, and life of field support services for oil and gas, the Marlin® Mk3's modular, plug and play mission package architecture and dual AUV/Remote Operated Vehicle propulsion modes is a revolution in AUV technology that can perform a wide range of deepwater geophysical survey and structural integrity management inspection operations. The Marlin® can be outfitted with sophisticated sensor packages including multi-beam, side scan, 3D, sub-bottom profiler, and synthetic aperture sonars, as well as high resolution video, still photo, and laser profilers, enabling advanced autonomous data acquisition, processing, analysis and response.

"Lockheed Martin's extensive AUV development expertise, coupled with SeaRobotics' comprehensive commercial design, manufacturing, and offshore support capabilities, forms a team that is fully capable of delivering Marlin's game-changing technology to commercial markets," said Don Darling, president of SeaRobotics.

Leveraging advanced autonomy technologies developed for Lockheed Martin's undersea defense portfolio, the Marlin Mk3 offers powerful new autonomous inspection capabilities that significantly reduce operator workload and fatigue. High resolutions, 3D models of subsea structures in real time, and prior survey result detections enhance Marlin's capabilities. The Marlin Mk3's 44 kWh battery capacity provides mission endurance up to 24 hours and an operational range greater than 100 kilometers before recharging is required.

"Lockheed Martin's Marlin Mk3 allows offshore service providers to take on a wider range of deepwater survey and inspection operations than other AUVs, and its plug and play design enables rapid adoption of new sensor, navigation, communication, and energy technologies," said Rich Holmberg, vice president of Lockheed Martin's Mission and Unmanned Systems. "Lockheed Martin has over 20 years of experience in deploying innovative AUV solutions and the Marlin Mk3 takes these unmanned solutions to the next level."

Apply Sørco has secured new frame agreement for Maintenance, Replacements and Modifications (M&M) from Statoil worth approximately NOK 4 billion over the next six years. The contracts secure activity and visibility for the company and its employees. The contracts include a main supplier agreement, replacing the current M&M agreement, and a competition-agreement related to modification projects Statoil chooses to offer for competitive bidding outside the main M&M contract.

The main supplier agreement lasts for six years, with a four-year option for extension. It covers the following licences and installations: 

The frame agreement has a duration of ten years and covers all of Statoil’s installations onshore and offshore Norway.

“The awards are a declaration of trust from Statoil to Apply Sørco and come as a consequence of the deliveries we have made under the current agreement,” says chief executive officer Per Hatlem in Apply Sørco.

Apply Sørco supports Statoil’s continued focus on cost efficiencies and optimization by including productivity incentives in the contract. Apply Sørco has improved efficiency in partnership with Statoil since the award of the current agreement in 2010. The company remains committed to improving productivity and execution, and will therefore continue the ongoing efficiency program in order to strengthen future competitiveness.

The new contracts and extension of the cooperation with Statoil represent a positive shift for Apply Sørco.

“The recent years have been challenging and it is a great motivation for the whole organisation to be trusted with today’s contract awards. Over time, one may see potential openings for hiring of new employees, both onshore and offshore, to meet requirements in the project portfolio”, says Per Hatlem.

Apply Sørco represents Apply’s MMO- and EPCI operations in the oil- and gas. Deliveries target all project phases from concept development and studies to completion and commissioning as well as operations, maintenance and modifications of oil and gas production facilities. The company has more than 30 years of experience on the Norwegian Shelf. Headquarters are in Stavanger, with offices in Bergen Krakow and Hammerfest.