Scana Industrier ASA has through its subsidiary Scana Subsea, been awarded contract to deliver machined riser forgings to an undisclosed client.
The riser systems are intended for North Sea and Australia operations.
The initial contract value is 27 MSEK (USD 4.09 million). The contract contains additional optional work as machining, welding, assembly and testing, which may increase the total contract value higher.
The projects are planned to start immediately and deliveries will commence in 3rd quarter 2013. The contract will also involve Scana Steel Björneborg, Scana Steel Söderfors and Scana Machining, in addition to Scana Subsea fronting the contract.
Cal Dive International, Inc. announced that it has recently commenced a two-year charter of the DP saturation diving vessel Kestrel to a major contractor in Mexico to perform repair and maintenance work for Pemex.
The charter started in mid-October and has a fixed term of two years with an additional one-year option. The charter is expected to result in EBITDA of approximately $10 million per year during the two-year charter term. The vessel is expected to generate approximately break-even EBITDA in 2012.
In addition, Cal Dive has been awarded three saturation diving contracts in Australia. Two of the projects will utilize one of Cal Dive’s portable saturation diving systems while the third contract will be performed from a third party vessel utilizing a built in saturation diving system. These three contracts are expected to generate total revenue of approximately $20 million during 2013 and the first project is expected to commence in the first quarter 2013.
Quinn Hébert, President and Chief Executive Officer of Cal Dive, stated, “We are pleased to announce the saturation diving contracts in Australia and the charter of the Kestrel in Mexico. Both awards demonstrate the continued execution of our strategy to geographically diversify outside the U.S. Gulf of Mexico. The charter of the Kestrel is also consistent with our strategy to commit certain assets to long-term contracts that improve visibility. The charter is of additional significance due to the EBITDA improvement it will generate in 2013.”
Cal Dive International, Inc., headquartered in Houston, Texas, is a marine contractor that provides an integrated offshore construction solution to its customers, including manned diving, pipelay and pipe burial, platform installation and platform salvage services to the offshore oil and natural gas industry on the Gulf of Mexico OCS, Northeastern U.S., Latin America, Southeast Asia, China, Australia, the Middle East, West Africa and the Mediterranean, with a diversified fleet of surface and saturation diving support vessels and construction barges.
This week the SubseaIQ team added 1 new projects and updated 11 projects. You can see all the updates made over any time period via the Project Update History search. The latest offshore field develoment news and activities are listed below for your convenience.
Jun 29, 2012 – ShawCor announced that its pipecoating division, Bredero Shaw, has received a contract to provide pipeline coatings and related products and services for the flowlines and tie-in spools for the Ichthys LNG project. The contract involves coating approximately 148 km of 6-inch to 18-inch diameter pipe that will be protected with three-layer polypropylene anticorrosion coating and Thermotite multi-layer polypropylene insulation. Work will commence during the second quarter of 2013. The company will execute the work at Bredero Shaw’s facilities in Kabil, Indonesia and Kuantan, Malaysia.
Project Details: Ichthys
Jun 29, 2012 – Shell awarded Technip a subsea installation contract for the Prelude FLNG facility, which is moored in a water depth of 787 feet (240 meters), about 124 miles (200 kilometers) off the northwest coast of Australia. The contract covers the project management, fabrication, transport and installation by reeling of 12 inch flowlines and the fabrication of pipeline end terminals, flowline appurtenances and rigid spools. It also includes the transportation and installation of the subsea equipment including manifolds, umbilical termination assemblies, rigid spooks and flying leads. Shell said it expects the Prelude FLNG project to be ready in 2017. Once operational, the Prelude FLNG facility will produce at least 5.3 million tones per annum (mtpa) of liquids.
Project Details: Prelude
Europe – North Sea
Jul 5, 2012 – FMC has been awarded a contract for subsea production systems (SPS)for the Gullfaks South field, with options to cover Statoil’s subsea tie-back demand in the fast-track portfolio for 2014 and 2015. Estimated contract value is close to $199 million (NOK 1.2 billion), in addition to possible extensions worth $663 million (NOK 4 billion. Equipment to be supplied includes wellheads, x-mas trees, template structures, manifold and control systems.
Project Details: Greater Gullfaks Area
Jul 2, 2012 – Drilling results confirm Statoil’s earlier expectations that its King Lear prospect would be a high-impact well. Exploration well 2/4-21 drilled by the Maersk Gallant (350′ ILC) in production licences 146 and 333, has proven a 48-meter gas/condensate column in the main bore 2/4-21 and an additional 70-meter gas/condensate column in the side-track 2/4-21A. Statoil estimates the total volumes in King Lear to be between 70 and 200 million barrels of recoverable oil equivalent.
Project Details: King Lear
Jun 29, 2012 – Faroe Petroleum will plug and abandon the Clapton exploratory well 2/8-18S on Production License 440S in the Norwegian sector of the North Sea. The well found hydrocarbons in chalks of the Shetland Group and also encountered reservoir rocks, but the reservoir properties were poorer than expected. Reaching a vertical depth of 8,593 feet (2,619 meters) by the Maersk Guardian (350??? ILC) jackup, the well is a dry hole.
Project Details: Clapton
N. America – US GOM
Jul 2, 2012 – Anadarko Petroleum has signed a definitive agreement with an undisclosed party to enter into a joint-venture capital carry arrangement for Anadarko’s ownership in the Gulf of Mexico Lucius development project. Under the terms of the agreement, Anadarko will be carried for $556 million, which is estimated to represent 100 percent of its expected capital obligation through the anticipated date of first production at Lucius. In exchange, Anadarko will convey a 7.2-percent working interest in the Lucius development and will continue as operator with a 27.8-percent working interest.
Project Details: Lucius
S. America – Other & Carib.
Jul 3, 2012 – BPZ Energy has announced that an extension to their gas flaring permit has been granted by the Peruvian Ministry of Energy and Mines. The permit will cover flaring operations at the Company’s Albacora field through December 28, 2012. Gas is flared off when sufficient amounts of gas aren’t being reinjected or sold. At this time, the reinjection equipment at Albacore is sitting idle while the environmental permit to allow for reinjection is finalized.
Project Details: Albacora
Asia – Caspian
Jul 2, 2012 – Total, on behalf of the Socar/Total/GDF Suez partnership, has submitted a notice of commerciality to the Government of Azerbaijan for the Absheron discovery. This step is an important milestone in the frame work of the Agreement on Exploration, Development and Production Sharing for the Absheron offshore block in the Azerbaijan sector of the Caspian Sea signed in 2009.
Project Details: Absheron
Africa – West
Jun 29, 2012 – Saipem has signed a new E&C offshore contract in West Africa for the development of the southern part of the Mafumeira field within Block 0. The contract has been awarded by CABGOC (Cabinda Gulf Oil Company Ltd), wholly owned by Chevron. The Mafumeira Sul EPCI 3 scope of work is for the engineering, procurement and pre-fabrication activities for subsequent offshore modifications and tie-in activities on the existing Mafumeira Norte platform and the future Mafumeira Sul production platforms. Mafumeira Sul EPCI 4 comprises the engineering, procurement, fabrication and installation of an onshore pipeline portion connecting the field to the oil storage and export facilities in the Malongo Terminal. The marine activities will be carried out in different time frames between the fourth quarter of 2013 and the second quarter of 2015.
Project Details: Mafumeira
Jun 29, 2012 – Allied Energy reported that it plans to drill a development well on the Oyo field in 4Q 2012. The new well, Oyo No. 7, is being designed to test the prospective resource potential of the deeper Miocene reservoir in the field, but also to increase production in the Pliocene reservoir. With these dual objectives, the No. 7 well is expected to both significantly increase oil production from the currently producing reservoir and de-risk much of the unrisked resource potential in the field.
Project Details: Oyo
Adira Granted Extension for Samuel License
Jul 3, 2012 – Adira Energy Ltd. announced today that Israel’s Ministry of Energy and Water Resources has granted an extension of the dates for the execution of a drilling contract and the spudding of the first well on the Samuel offshore license. The contract execution date has been extended from July 1 to October 31, 2012 with a requirement that the first well be spud by April 30, 2013. Adira has indicated that the environmental study for Samuel will be submitted by the July 10 deadline.
Jul 2, 2012 – ATP Oil & Gas has successfully drilled its Shimshon exploration well in the Levant Basin of offshore Israel encountering more than 62 feet (19 meters) of natural gas pay in the Bet Guvrin sands. The Shimshon well is in a water depth of 3,622 feet and was drilled to a subsea depth of 14,445 feet by the Ensco 5006 semisub.
Project Details: Shimshon
- Recap: Worldwide Field Development News (Jun 22 – Jun 28, 2012) (mb50.wordpress.com)
- UAE: Drydocks World Initiates Prelude FLNG Project with Turret Steel Cutting (worldmaritimenews.com)
- Statoil Charters Light Well Intervention Vessels to Increase Recovery (mb50.wordpress.com)
- Enhanced recovery through subsea compression at Gullfaks (mb50.wordpress.com)
TOTAL E&P Australia (Total) has signed up to use AGR’s Riserless Mud Recovery (RMR®) system. The contract is for two exploration wells to be drilled over the next year in the Browse Basin off North West Australia.
Bernt Eikemo, AGR’s Vice President of the Enhanced Drilling Solutions (EDS) division (Asia Pacific), said: “AGR is delighted to be part of Total’s drilling team during the forthcoming exploration campaign. We hope that this is the start of a long, successful relationship with Total E&P Australia.”
He added: “Our previous experiences with several operators in the Browse Basin and the North West Shelf have shown that unconsolidated sand formations become much more benign when drilled with RMR® using a proper mud system.”
RMR® has been used by Total on several other projects internationally but this is the first time that the operator has used the system in Australia.
The main reason for using RMR® on these wells is to be able to drill through the unconsolidated sands of the Grebe Formation. It is renowned for stuck-pipe problems when drilling riserless using seawater and sweeps.
RMR® (system example attached) enables the use of weighted, engineered mud in the top-hole section. All mud and cuttings are returned to the rig with no discharge to the seabed. The top-hole section can be drilled more safely, quickly and with less impact on the environment.
RMR®, together with its sister technology the Cutting Transportation System (CTS™), has been deployed on more than 500 wells worldwide to date.
The Export-Import Bank of the United States (Ex-Im Bank) has authorized a $2.95 billion direct loan to support U.S. exports to the Australia Pacific liquefied natural gas (LNG) project.
The transaction is Ex-Im’s second-largest single-project financing in history and is also the Bank’s first LNG project in Australia.
The project on Curtis Island in south-central Queensland will produce natural gas from coal-seam wells and will have total capacity of nine million metric tons per year. China Petroleum and Chemical Corp. (Sinopec) and Kansai Electric Power Co. Inc. of Japan will purchase most of the LNG produced. China Ex-Im Bank and commercial lenders are also providing debt financing for the project.
Ex-Im’s financing is expected to support an estimated 11,000 American jobs. Principal U.S. exporters are ConocoPhillips Co. and Bechtel International, both of Houston, Texas. Additional exporters and suppliers include numerous small businesses in Texas, Colorado, Nevada, California, Oregon and Oklahoma.
“Our authorization paves the way for U.S. companies to export equipment and services to this major LNG project and, in so doing, to maintain thousands of American jobs across the country,” said Ex-Im Bank Chairman and President Fred P. Hochberg. “This financing also demonstrates how the United States and China can work together for our mutual benefit to foster trade and develop critically needed energy resources.”
The transaction, approved by Ex-Im’s board of directors on May 3, was announced following Chairman Hochberg’s trip to China, where he participated in the fourth round of the Strategic and Economic Development Dialogue (S&ED) with Treasury Secretary Timothy F. Geithner and other officials. The S&ED was held in Beijing on May 3-4.
Bechtel official Jay C. Farrar, who manages the company’s office in Washington, D.C., cited the importance of Ex-Im’s financing for U.S. exporters to large international projects. “Since 1992, Ex-Im Bank has been instrumental in the successful awarding and completion of projects involving Bechtel that have supported thousands of jobs for highly skilled employees at our company. The Bank’s financing also has helped to maintain thousands of additional jobs related to the supply chain for these projects,” Farrar said.
The Australia Pacific LNG project will involve development of coal-seam natural-gas fields, two gas transmission lines to a collection hub, a natural gas liquefaction plant and an adjacent marine shipping export terminal on Curtis Island near the city of Gladstone.
- Why America’s Missing Out on the Billion-Dollar Global LNG Game (mb50.wordpress.com)
- UK: Shell Tables USD 1.56 bln Bid for Cove (mb50.wordpress.com)
- USA: Sumitomo, Tokyo Gas in Cove Point LNG Talks with Dominion (mb50.wordpress.com)
- Will the US Become the World’s Largest Exporter of LNG? (mb50.wordpress.com)
- USA: Jordan Cove Submits Non-FTA LNG Export Application (mb50.wordpress.com)
The Atwood Osprey, owned by the international drilling contractor Atwood Oceanics, started its first three year drilling services contract with Chevron on May 27, 2011 for operations offshore Australia inclusive of the Greater Gorgon field development project. With this contract extension, the Atwood Osprey is now committed through May 2017.
The operating day rate for the initial three year period remains unchanged. The operating day rate at the start of the extension period is estimated to be approximately $470,000, exclusive of the total cost escalation adjustments which occur during the initial term and will be additive to the operating day rate during the extension period. The contract provisions during the extension period provide for continued annual cost escalation adjustments, enhanced rig equipment maintenance and repair time allowances, and other adjustments to the initial contract’s terms and conditions.
- Atwood Beacon to Drill Offshore Israel (mb50.wordpress.com)
- USA: Statoil Extends Maersk Developer Contract for GoM Work (mb50.wordpress.com)
- USA: Anadarko Contracts ENSCO 8506 Semi (mb50.wordpress.com)