Daily Archives: October 3, 2011
OAO Gazprom, Russia’s biggest company by market value, may get a 10-year tax exemption for crude oil exported from its offshore Prirazlomnoye development in the Arctic where production is set to start next year.
The government is waiting for Gazprom to provide economic forecasts before granting the break, said two government officials, who declined to be identified before the exemption is approved. The project will probably not be able to turn a profit without the tax relief, they said.
Prirazlomnoye is Russia’s first major offshore oil project in the Arctic. The project has received a temporary exemption from the mineral extraction tax.
Production drilling on the offshore project is planned for about the first quarter of next year, with output planned to peak at about 6 million to 6.5 million metric tons a year in 2019. The project’s platform and 40 wells may cost $7 billion in total, Nikolay Kabanov, a Gazprom deputy department head, said in St. Petersburg on Sept. 13.
Gazprom spokesman Sergei Kupriyanov didn’t immediately answer calls to his mobile phone.
By Alena Chechel and Stephen Bierman (Bloomberg)
- Russia: Rosneft Gets Clearance to Buy More Offshore Assets in the Arctic (mb50.wordpress.com)
- Gazprom Keeps on Spending (europebiz.wordpress.com)
- Shale gas should make the world a cleaner, safer place (mb50.wordpress.com)
- Arctic Oil Geopolitics (spectrum.ieee.org)
- Turkey ends western supply gas contract (rt.com)
The planned start-up of the intervention work is in November 2011, and the estimated duration is up to and including May 2012.
Island Constructor (pictured) is a well intervention facility operated by Island Offshore Management AS.
- Re-inventing subsea intervention to keep economics above water (mb50.wordpress.com)
- USA: Statoil Signs Energy Partneship Agreement with UT (mb50.wordpress.com)
- Norway’s Biggest Oil Find Since ’80s Sends Lundin to Record (businessweek.com)
- Norway oil, gas find may be its third biggest (theglobeandmail.com)
- Statoil: Riserless light well intervention (mb50.wordpress.com)
- Norway: DeepOcean AS’ Secures Contract for Edda Flora Vessel (mb50.wordpress.com)
- Norwegian giant in it for the long haul with Texas shale venture (mb50.wordpress.com)
- Statoil announces huge North Sea oil discovery (seattletimes.nwsource.com)
Dresser-Rand Group Inc. , a global supplier of rotating equipment and aftermarket parts and services, has been awarded compression equipment and services valued at more than $700 million by TUPI B.V. (Petrobras 65% and operator, BG Group 25%, Petrogal Brasil S.A – Galp Energia 10%) and GUARA B.V. (Petrobras 45% and operator, BG Group 30% and Repsol-Sinopec 25%).
The equipment, which includes up to 80 DATUM compressor trains, will be installed on eight (8) “replicant” floating, production, storage and offloading (FPSO) vessels. Six of these vessels will be located in the Lula field (formerly known as Tupi) and two in the Guara field. Training, aftermarket services and two 10-year maintenance contracts are also included as part of the award.
According to Vincent R. Volpe Jr., Dresser-Rand’s President and CEO, “We are proud to announce this significant award, and, more importantly, appreciative of the confidence that Petrobras and its partners have placed in us to supply all the compression trains for all services on these eight FPSOs. We believe that this is a clear statement by a highly respected Client of their confidence in our Company’s technology, execution capability and ongoing technical and field support. The award for all of the compression trains on this project reflects our Company’s strength of offerings in the Upstream Segment, which we project will be the largest area of growth in the Oil and Gas markets in the coming years.”
According to Jesus Pacheco, Dresser-Rand’s executive vice president, New Equipment Worldwide, “We believe in the value proposition our technology can bring to our end user Clients in this market. On this program, we bring proven leading-edge technology to increase the throughput, maintainability and reliability of these key assets. Building on previous compression solutions we have delivered for the Petrobras Pilot I, II and III FPSOs, we again eliminated the need for additional topsides equipment, specifically, separate CO2 pumping systems, saving space and weight, reducing the complexity of the overall plant, while increasing reliability. As the sole solutions provider for all topsides compression equipment, we are able to ensure all services are fully integrated to optimize overall plant operability. In addition, we have also maximized standardization of spare parts, maintenance practices and control systems to reduce inventory and maintenance costs.
“It is also important to note the positive impact this technology has on making these assets more environmentally sustainable. Higher compressor efficiencies possible by the use of our DATUM product line reduce the carbon footprint of these FPSOs as they require less power to meet the specified duties. With higher efficiency, better maintainability and higher reliability, and a smaller carbon footprint, we directly contribute to reducing the life cycle costs of the assets, which makes our Clients more competitive in the markets they serve.”
Consistent with the Company’s commitment to support localization initiatives in its served markets, a high portion of added value on this program will be performed in Brazil. This will include sourcing, project management and engineering, further development of local service support capabilities and packaging in a newly planned facility in the Industrial Corridor near Sao Paulo, which will further expand the Company’s in-country service capabilities.
On September 6, 2011, Dresser-Rand disclosed that it had been selected as the supplier for all the compression needs of these FPSOs. However, at the time, the Company cautioned that any actual award remained subject to the approval of Petrobras’ Board of Directors and its Partners. Those approvals have now been obtained. More than $400 million and $70 million will be reflected in its third quarter 2011 New Units and Aftermarket bookings, respectively. The Aftermarket booking amount is consistent with the Company’s accounting policy to only book the portion of the Aftermarket orders that will be delivered in the first 15-months of long-term service agreements.
On the basis of this project the Company reiterates its guidance that the new unit bookings for 2011 may be at the top end of, or even exceed, the guidance previously provided of $1.4 to $1.6 billion.
- Modec Receives FPSO Order from Petrobras, Brazil (mb50.wordpress.com)
- Keppel Shipyard Lands $142 Million In Conversion Contracts (gcaptain.com)