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West Callisto Drills for Total Offshore Myanmar

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Total recently started drilling operations offshore Myanmar at the Yadana field, using Seadrill’s jack-up rig, West Callisto.

According to the Seadrill’s Fleet Status Report for May, Total has hired the rig on a three-month contract. The contract, expiring in mid-July, will bring approximately $12 million to Seadrill.

Total operates the Yadana field (31.2%). Located on offshore Blocks M5 and M6, this field produces gas that is delivered mainly to PTT (the Thai state-owned company) to be used in Thai power plants.

The Yadana field also supplies the domestic market via a land pipeline and, since June 2010, via a sub-sea pipeline built and operated by Myanmar’s state-owned company MOGE.

Following the completion of drilling operations in Myanmar, the rig will leave south-east Asia in which it has been operating since 2010. West Callisto will move to Middle East to commence drilling operations offshore Saudi Arabia under a three-year contract with Saudi Aramco. The drilling program is scheduled to start in September 2012

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Repsol Drills Duster Offshore Cuba

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Spanish oil titan Repsol on Friday announced it would plug and abandon an exploration well offshore Cuba.

Repsol’s well in Cuba’s exclusive economic zone (EEZ) was drilled by the Scarabeo 9, a 6th generation semi submersible drilling rig.

The Saipem-owned rig failed to find hydrocarbons, and Repsol’s spokesman told BusinesWeek that the result is disappointing but not unusual saying that every four of five offshore wells turn out to be a dry hole.

He said that the Spanish company was analyzing the data collected before making any further decisions.

Scarabeo 9, capable of operating in water depths of up to 3,600 meters, was built by Singapore’s Keppel specifically for this campaign.

Due to the United States trading embargo against Cuba, Repsol had to come up with a rig with almost no U.S. made parts in it, and according to Reuters, the only U.S. manufactured part on the Scarabeo 9 rig is a blowout preventer, a part that malfunctioned and caused the Deepwater Horizon disaster in the U.S. Gulf of Mexico in 2010.

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Cuba drills for oil, but U.S. unprepared for spill

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By William Booth, Published: March 1

As energy companies from Spain, Russia and Malaysia line up to drill for oil in Cuban waters 60 miles from the Florida Keys, U.S. agencies are struggling to cobble together emergency plans to protect fragile reefs, sandy beaches and a multibillion-dollar tourism industry in the event of a spill.

Drawing up contingency plans to confront a possible spill is much more difficult because of the economic embargo against Cuba. U.S. law bars most American companies — including oil services and spill containment contractors — from conducting business with the communist island. The embargo, now entering its 50th year, also limits direct government-to-government talks.

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“We need to figure out what we can do to inflict maximum pain, maximum punishment, to bleed Repsol of whatever resources they may have if there’s a potential for a spill that would affect the U.S. coast,” Rep. David Rivera (R-Fla.) told in January a congressional subcommittee that oversees the U.S. Coast Guard.

An unusual coalition of U.S. environmentalists and oil industry executives have joined forces to push the White House to treat the threat of a spill seriously, while tamping down the anti-Castro rhetoric.

“There is no point in opposing drilling in Cuba. They are drilling. And so now we should be working together to prevent disaster,” said Daniel Whittle, Cuba program director of the Environmental Defense Fund, who has been brokering meetings between Cuban and U.S. officials.

Environmentalists applauded the announcement last week of an agreement between the United States and Mexico to allow for joint inspection of rigs operating in the Gulf of Mexico and the establishment of a common set of safety protocols between the two countries.

Nothing approaching this exists with the Cubans.

Because of the embargo, the talks between Cubans, Repsol and the Coast Guard are taking place in the Bahamas and Curacao — not Havana or Miami — under the auspices of the U.N. International Maritime Organization, paid for by charitable donations from environmental groups and oil industry associations.

A single Florida company is licensed to deliver oil dispersants to Havana. But there are no U.S. aircraft with contracts or permission to fly over Cuban waters. The current plan is to retrofit and deploy aging crop dusters from Cuban farms to dump the dispersants.

Obstacles to a cleanup

Repsol operates leases in U.S. waters in the Gulf of Mexico and has a staff of 300 based in Houston. But because of the embargo, none of the Houston staff is permitted to have anything to do with the Repsol operation in Cuba. Any assistance would have to come from Madrid.

Because of the embargo, and to protect Repsol from economic sanctions, no more than 10 percent of the components on the Scarabeo 9 drilling rig may be manufactured in the United States.

One of those components is the blowout preventer, a vital piece of safety equipment manufactured by National Oilwell Varco in Houston — whose employees cannot service the equipment while it is in Cuban waters.

If a blowout occurred, Repsol would have to await delivery of a capping stack, which would have to travel from Scotland to Cuba and then out to the rig. Experts predict it would take a week at minimum.

Cleanup crews arriving from the United States would be allowed to skim oil from the water and collect surplus oil gushing from the rig, but they’d have to take it someplace. The question is where? The U.S. tankers can’t enter Cuban territorial waters, and if they do, they are prohibited from returning to the United States for six months. The recovered oil would belong to Cuba, and so it can’t travel to the United States.

Modeling of ocean currents by the USGS suggests a spill at the Repsol exploratory well site probably would not affect the Florida Keys but would be swept north by the powerful flow of the Gulf Stream and then begin to deposit oil on beaches from Miami to North Carolina.

“If anything went really wrong out there, I believe there would be a quick political response,” said William K. Reilly, co-chairman of the national commission on the Deepwater spill and head of the Environmental Protection Agency under President George H.W. Bush.

But a lot can happen in a couple of days, Reilly said. “It’s time to face reality. It is, completely, in the interest of the United States that we get this right.”

“This is a disaster waiting to happen, and the Obama administration has abdicated its role in protecting our environment and national security by allowing this plan to move forward,” said Rep. Ileana Ros-Lehtinen (R-Fla.), chairman of the House Foreign Affairs Committee.

Ros-Lehtinen and her colleagues sponsored legislation to deny visas to anyone who helps the Cubans advance their oil drilling plans. They have also sought to punish Repsol.

“We need to figure out what we can do to inflict maximum pain, maximum punishment, to bleed Repsol of whatever resources they may have if there’s a potential for a spill that would affect the U.S. coast,” Rep. David Rivera (R-Fla.) told in January a congressional subcommittee that oversees the U.S. Coast Guard.

An unusual coalition of U.S. environmentalists and oil industry executives have joined forces to push the White House to treat the threat of a spill seriously, while tamping down the anti-Castro rhetoric.

“There is no point in opposing drilling in Cuba. They are drilling. And so now we should be working together to prevent disaster,” said Daniel Whittle, Cuba program director of the Environmental Defense Fund, who has been brokering meetings between Cuban and U.S. officials.

Environmentalists applauded the announcement last week of an agreement between the United States and Mexico to allow for joint inspection of rigs operating in the Gulf of Mexico and the establishment of a common set of safety protocols between the two countries.

Nothing approaching this exists with the Cubans.

Because of the embargo, the talks between Cubans, Repsol and the Coast Guard are taking place in the Bahamas and Curacao — not Havana or Miami — under the auspices of the U.N. International Maritime Organization, paid for by charitable donations from environmental groups and oil industry associations.

A single Florida company is licensed to deliver oil dispersants to Havana. But there are no U.S. aircraft with contracts or permission to fly over Cuban waters. The current plan is to retrofit and deploy aging crop dusters from Cuban farms to dump the dispersants.

Obstacles to a cleanup

Repsol operates leases in U.S. waters in the Gulf of Mexico and has a staff of 300 based in Houston. But because of the embargo, none of the Houston staff is permitted to have anything to do with the Repsol operation in Cuba. Any assistance would have to come from Madrid.

Because of the embargo, and to protect Repsol from economic sanctions, no more than 10 percent of the components on the Scarabeo 9 drilling rig may be manufactured in the United States.

One of those components is the blowout preventer, a vital piece of safety equipment manufactured by National Oilwell Varco in Houston — whose employees cannot service the equipment while it is in Cuban waters.

If a blowout occurred, Repsol would have to await delivery of a capping stack, which would have to travel from Scotland to Cuba and then out to the rig. Experts predict it would take a week at minimum.

Cleanup crews arriving from the United States would be allowed to skim oil from the water and collect surplus oil gushing from the rig, but they’d have to take it someplace. The question is where? The U.S. tankers can’t enter Cuban territorial waters, and if they do, they are prohibited from returning to the United States for six months. The recovered oil would belong to Cuba, and so it can’t travel to the United States.

Modeling of ocean currents by the USGS suggests a spill at the Repsol exploratory well site probably would not affect the Florida Keys but would be swept north by the powerful flow of the Gulf Stream and then begin to deposit oil on beaches from Miami to North Carolina.

“If anything went really wrong out there, I believe there would be a quick political response,” said William K. Reilly, co-chairman of the national commission on the Deepwater spill and head of the Environmental Protection Agency under President George H.W. Bush.

But a lot can happen in a couple of days, Reilly said. “It’s time to face reality. It is, completely, in the interest of the United States that we get this right.”

Source

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