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Scana to Supply Riser Forgings to Australia and North Sea

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.

Scana to Supply Riser Forgings to Australia and North Sea| Offshore Energy Today.

Investors hit the brakes on resources projects

http://resources0.news.com.au/images/2012/11/28/1226526/095052-121129-n-projects.jpg

Adam Creighton
From: The Australian
November 29, 2012 12:00AM

RESOURCES investors are increasingly scrapping tentative investment plans and cost blowouts are artificially inflating Australia’s resource pipeline, a new report reveals.

Although the total value of committed resource projects rose a little to $268 billion in October, the number of committed projects fell to 87 from 98 six months earlier, the Bureau of Resources and Energy Economics said yesterday in its six-monthly update of Australia’s investment pipeline.

“The increase is primarily a result of the approval of a second train for the Australia Pacific LNG project and cost increases to projects that were already under way,” the bureau said.

Eleven “mega projects”, costing more than $5bn each — mainly liquefied natural gas facilities such as the Gorgon, Ichthys and Wheatsone projects — account for three-quarters of all committed investments.

Only 10 projects worth $13.2bn progressed to the “committed stage” of development, compared with 21 projects worth $45bn in the six months to April.

“Even on the most conservative estimate provided by the bureau, the total potential investment in the resource sector sits at a mammoth $650bn,” Wayne Swan said, pointing out the OECD’s remarks earlier this week that mining in Australia should “continue to expand vigorously” next year, based on current plans.

The bureau said the total committed expenditure on Australia’s oil and gas projects was “comparable to the total cost of the Apollo moon program in 2012 prices”.

But concerns about the longevity of Australia’s resource boom, which intensified earlier this year after BHP’s decision to shelve its multi-billion-dollar Olympic Dam project in South Australia, and Fortescue Metals Group’s decision to retrench 1000 workers in Western Australia, are still worrying investors, who cancelled 18 projects in the very preliminary stages of development in the six months to October.

“The decrease in the number of projects is attributable to the removal of projects that have not progressed as scheduled and because information could not be sourced that confirmed a clear intention to progress to development,” the bureau said.

Nevertheless, more than 170 projects worth about $290bn — mainly coal and gas projects slated for Queensland — remain in the “feasibility stage”, having passed commercial viability tests.

“Due to restrictions on exploration and production, there have been few uranium projects progressing along the investment pipeline,” the bureau added, although it pointed to regulatory changes that should improve their prospects.

Separate data from the Australian Bureau of Statistics showed the value of construction completed over the three months to September rose 1.7 per cent to $51.3bn, and increase underpinned almost entirely by engineering construction work.

Source

Cal Dive Secures Saturation Diving Jobs in Mexico and Australia

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.

Subsea World News – Cal Dive Secures Saturation Diving Jobs in Mexico and Australia.

Recap: Worldwide Field Development News (Jun 29 – Jul 5, 2012)

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.

Australia

ShawCor will Provide Services for Ichthys LNG Subsea Equipment

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

Technip Wins Prelude Subsea Installation Contract From Shell

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

Statoil Awards Subsea Project to FMC

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

King Lear Not a Tragedy for Statoil

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

Faroe Drills Duster in Clapton Prospect

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

Anadarko Enters Capital Carry Deal for Lucius

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.

Gas Flaring Permit Extended for Albacora

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

Total Sumits Notice of Commerciality for Absheron Discovery

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

Saipem Signs E&C Contract for Mafumeria Field

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

Allied Energy Preps Drilling Program for Oyo Field

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

Mediterranean

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.

Shimshon Delivers for ATP

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

Total Selects AGR’s RMR for Exploration Offshore Australia

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.

Source

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