Daily Archives: October 5, 2011
The Arctic Scientific Center planned to be set up by the Russian Rosneft oil giant jointly with the US ExxonMobil Corporation will become sort of a technological core for developing the region’s ice shelf. Pursuant to the strategic partnership agreement signed earlier, the Russian and American companies will have 66.7 and 33.3 percent interests respectively in the future joint venture.
The new scientific center is meant to study the climate and geology of the Arctic, engineer icebreakers and drilling platforms, as well as engage in all shelf cooperation-related projects.
The region faces serious yearlong development, given an estimated one third of the world’s natural resources originating from the Arctic Ocean floor. The shelf is especially rich in coal, gold, copper, nickel, tin, platinum and manganese, with the region’s hydrocarbon fields holding up to 30 and 13 percent of global gas and oil reserves.
It is clear that one company cannot cover the development of all these deposits single-handedly, which requires cooperation with foreign specialists. According to partner of the RusEnergy consulting company Mikhail Krutikhin, the project has an essential economic aspect:
“ExxonMobil possesses enough shelf exploration technology and experience; it cooperated with Russia on the Sakhalin-1 project. Any opportunity to get access to new deposits and develop them appears more than attractive for any international company of this class,” says Mikhail Krutikhin.
One should realize, however, that exploration efforts on the Russian shelf will also require a specific approach, stresses oil investment expert Dmitry Alexandrov:
“In general, no one can be deemed highly experienced in carrying out geologic exploration under such conditions, given that the Russian Arctic differs much from what we observe in Alaska. Russia finds it particularly important to cooperate with a large foreign company in order to adopt its knowledge of shelf activities. We are dealing with the shared financial risks on the one hand and high-level technological solutions on the other,” Dmitry Alexandrov points out.
One should also bear in mind that the Arctic is a region attractive for all oil giants, the expert adds:
“The shelf’s resource base arouses interest of many foreign companies. Giants like ExxonMobil, Shell, BP, ConocoPhillips and Statoil have insufficient resource bases and always seek to engage in high-potential projects,” Dmitry Alexandrov says in conclusion.
The Arctic center is expected to absorb some $500 or 600 million, with overall Rosneft and ExxonMobil investment estimated at $200-300 billion. The total economic impact may reach half a billion dollars.
Partnership between the Russian and American giants is not only limited to Arctic projects. ExxonMobil may take part in exploring an area of the so-called Tuapse Trough in the Black Sea, while Rosneft is likely to get access to oil deposits in the Gulf of Mexico, Texas and Canada.
- Russia: Rosneft Gets Clearance to Buy More Offshore Assets in the Arctic (mb50.wordpress.com)
- Rosneft hooks up with ExxonMobil on Arctic and Black Sea development (rt.com)
- ExxonMobil strategic agreement puts Rosneft on global stage (rt.com)
- ExxonMobil clinches Arctic oil deal with Rosneft (guardian.co.uk)
The management has an excellent track record of establishing businesses from the concept stage and adding value for shareholders
SeaEnergy PLCs (earlier Ramco Energy PLC) strategic approach to growth entails entering new businesses at an early stage when the need for capital is low and exiting these ventures when the right value is attained. The company, which was incorporated with focus on oil services, evolved into| an energy investment company with interest in oil and gas assets. SeaEnergy is currently also focusing on the development of its offshore wind service business, SeaEnergy Marine. In line with its strategy, the company has successfully monetized its business interests in the past. It liquidated its 2.0825% interest in the Azeri Chirag Guneshli (ACG) field in Azerbaijan for USD150 million during 2000 and divested its 80.13% stake in SeaEnergy Renewables Limited (SERL) for a cash consideration of £38.6 million in 2011.
SeaEnergy is venturing into services related to the installation, operation and maintenance (O&M), and support of wind turbines through SeaEnergy Marine. It will stand out in terms of efficiency and cost-effectiveness. Offshore wind capacity in Europe is estimated to rise from 2.6GW at the end of 2010 to 43.3GW by 2020. This is likely to create massive demand for vessels that can facilitate the installation and O&M of wind turbines. The industry is currently facing a dearth of right-fit vessels that can execute these activities efficiently. For instance, wind farm owners in UK currently depend on workboats that operate at a maximum wave height of 1.5 meters and at a distance of 60 miles from shore, severely limiting their usefulness for wind farms now in development. The huge gap between demand and supply reflects the opportunities for growth in the offshore wind energy sector.
SeaEnergy Marine – A one-stop-shop for offshore energy sector
SeaEnergy Marine plans to integrate all services that offshore wind farm owners/developers may require. The company’s state-of-the-art vessels will shorten the installation cycle and increase accessibility for O&M. In addition, SeaEnergy Marine’s vessels will offer these services at very competitive rates, making the economics of operation quite favourable for its customers.
Past experience, established business model increase probability of success
SeaEnergy Marine benefits from the management’s experience in the offshore wind energy sector, especially the exposure gained while working with SERL. Moreover, the business model is well established. SeaEnergy Marine is also actively submitting tenders for contracts with major offshore wind companies.
The Discounted Cash Flow approach yielded a fair value of GBp50.5 per share, based on a cost of equity at 14.48%, inclusive of an additional risk premium of 8% as the company is still in the inception phase. As the marine business will gradually materialise, the additional premium will be faded out over time , providing further upside. In addition, our fair value excludes current (and further) upside from the O&G assets.
- Wind Energy Update: Offshore wind cables – help or hindrance (prweb.com)
- SeaTwirl puts a new spin on offshore wind turbines (gizmag.com)
- Offshore wind company sues province for $2.25 billion (cbc.ca)
- US offshore wind coalition formed (businessgreen.com)
- Offshore wind farms are good for wildlife, say researchers (guardian.co.uk)
- New offshore turbine design to create and store energy (physorg.com)
September 5th, 2011, Det norske oljeselskap ASA presented a plan for development and operation (PDO) of Jette to the Minister of Petroleum and Energy, Ola Borten Moe. The PDO was submitted on behalf of the partners in the Jette Group, which in addition to Det norske as operator, includes Petoro, Dana Petroleum and Bridge Energy.
Aldous Senior Vice President Projects, Bård Atle Hovd, says this is an important step towards developing Jette.
– We have now signed the third and final contract for the development phase. As soon as we receive the Ministry´s approval, we will embark on our first field development. We wish for a fast track development, enabling us to produce oil from Q1 2013
Jette is located in blocks 25/7 and 25/8, in the mid part of the North Sea. The field, which lies at a depth of 127 meters, will be produced with two horizontal wells, tied back to the Jotun floating production, storage and offloading vessel (FPSO).
Det norske has signed supplier agreements with three contractors. Cameron has been selected to supply the subsea production system. They will, amongst other, fabricate the X-mas trees and protective structures.
Subsea 7 will be responsible for engineering, procurement, fabrication and installation of a 6 kilometer flexible flowline and jumpers, installation of a 6 kilometer integrated services umbilical, X-mas trees and protective structures. They will also supply diver assisted tie-ins.
Aker Solutions is given the assignment to fabricate the 6 kilometer integrated services umbilical.
- Det Norske submits PDO for Jette (norwayexploration.wordpress.com)
- Re-inventing subsea intervention to keep economics above water (mb50.wordpress.com)
- Det norske provides update on Total-operated Norvarg gas discovery in the Barents Sea (norwayexploration.wordpress.com)
- Det norske to drill Ulvetanna Prospect in Block 3/4, southern North Sea (norwayexploration.wordpress.com)
- New discovery near Norne (Skaugumsåsen) (norwayexploration.wordpress.com)
- Huge North Sea oil discovery to boost region’s oil sector (tradingfloor.com)
- Another potential extension to Aldous (norwayexploration.wordpress.com)
- Norway oil, gas find may be its third biggest (theglobeandmail.com)
- Norway’s Biggest Oil Find Since ’80s Sends Lundin to Record (businessweek.com)
- Statoil: North Sea find may be worlds biggest in 2011 (theglobeandmail.com)
Noble Corp inaugurated the Noble Globetrotter I ultra-deepwater drillship at Huisman’s new production hall in Schiedam, the Netherlands, on 1 October. The drillship, which was designed around Huisman’s multipurpose tower (MPT), is on schedule to be delivered later this year. It will then mobilize to the US Gulf of Mexico under a 10-year contract with Shell.
The MPT, which is also featured on Noble’s Bully rigs, is a compact box-type drilling tower replacing the conventional derrick. It uses two revolving carousels, each with two pipe rackers, to allow the racking of 35,000 ft of tubulars to support both a drilling side and a construction side, where tubulars can be prepared. This system of hoisting/handling leaves the drill floor open, providing better visibility for the driller and better movement for the crews, according to Noble and Huisman.
Further, the engine room is placed forward, underneath the accommodations, freeing up space in the aft. Riser is stored below deck, and it’s a flat deck essentially from the accommodations to the stern of the ship.
“It’s a much cleaner layout. Walking across the drill floor, there’s nothing overhead. You can reach straight into the center of the rotary with a crane, which is spectacular from a drilling operational perspective,” said David Williams, Noble chairman, president and CEO. “We think it provides a lot of features that will improve safety and operational efficiency.”
The MPT also allows the Globetrotter I to be a smaller-sized vessel (620-ft length) than many other ultra-deepwater drillships, although it can still drill in up to 10,000 ft of water and wells up to 40,000 ft deep. “We’re not giving up any operational capability over much larger vessels,” Mr Williams said, adding that the installation of a heave-compensated crane means there’s a third load path – besides the construction and drilling sides of the MPT – for handling trees or umbilicals.
The Globetrotter I had its hull built by Korea-based STX Offshore & Shipbuilding at its new yard in Dalian, China, then sailed under its own power to Huisman’s quay in the Netherlands, arriving on 19 July this year. Huisman, which was responsible for the design and construction of the drilling equipment as well as the vessel concept design, installed the MPT on the rig on 6 August.
The multipurpose tower on the Noble Globetrotter I uses two revolving carousels to allow 35,000 ft of tubulars to be racked. There is a construction side and a separate drilling side for improved efficiency.
“For us this is a new market. It took us 10 years to find the right combination of people who were willing to take a step-change in technology,” said Joop Roodenburg, Huisman CEO. “We know it’s very difficult to do new things. That’s why it took a long time to get everybody aligned.”
The top section of the MPT can be lifted off with a crane so the vessel can sail through the Panama Canal, Suez Canal and the Bosphorus, Mr Roodenburg explained.
Besides the MPT, the drillship features DP3 stationkeeping capabilities, active heave-compensated dual drum drawworks, 2.4 million lbs of hookload and 2 million lbs of variable deck load. A low elevated drill floor – 5 meters above the main deck – draws the centers of gravity down and reduces sideways motions on the drill floor.
The rig will be equipped with a 18 ¾-in. 15,000-psi six-ram Shaffer NXT BOP system, although Mr Williams and Mr Roodenburg emphasize that the rig has enough deck space to accommodate a backup BOP stack. The decision to build in that redundancy would lie with Shell, however.
“We will continue to explore with Shell what their BOP requirements are going forward. The only rig so far that we have agreed to put second BOPs on are the first of the Hyundai ships,” Mr Williams said, referring to the four ultra-deepwater drillships that Noble has ordered with Hyundai Heavy Industries this year. The first of these four drillships is expected to be delivered in 2013 and has a Letter of Intent in place with Shell for a five and a half-year drilling contract.
After its hull was built in Dalian, China, the rig sailed to the Netherlands for installation and commissioning of the topside equipment earlier this year.
A second Globetrotter-class rig is also under construction with STX at its Dalian yard. As with Globetrotter I, the Globetrotter II will then be mobilized to Huisman in the Netherlands for installation and commissioning of the topside equipment. Globetrotter II also has a 10-year contract in place with Shell, and delivery is slated for 2013.
- Hyundai Heavy Clinches 10th Drillship Order This Year (gcaptain.com)
- Noble Bully departs for the Gulf of Mexico featuring unique drilling package (gcaptain.com)
- Noble orders its fourth ultra-deepwater drillship this year (gcaptain.com)
- Sonardyne Supplies BOP Control System to Noble’s Drillship (USA) (mb50.wordpress.com)
- Seadrill is Keeping the Lights on at Samsung Heavy with Seventh, and Eighth, New Drillship Order (gcaptain.com)
- Seadrill Orders New Drillship from Samsung Heavy (South Korea) (worldmaritimenews.com)
- South Korea: Samsung Yard Bags $ 600 Mln UDW Drillship Order (appliedagrotech.net)
Oil exploration to renewable energy group SeaEnergy is working up plans to build a new wind farm support vessel specially designed for the North Sea market which is being targeted for a tender due out next month.
SeaEnergy chairman Steve Remp has told shareholders he expects a market opportunity for a specialised wind farm Offshore and Maintenance support vessel to be available by 2014.
“We have engaged with many potential customers and can confirm widespread support for our design and operational concept,” Remp reports.
Although the market opportunities for the vessel could materialise by 2014, Remp says those will be in the more benign conditions of the Baltic Sea: “To date, the only tender for such offshore wind support vessel has been for a project in the Baltic Sea,” Remp has told SeaEnergy shareholders.
“Our vessel design is specified for the more challenging wave, tide and weather conditions encountered in the North Sea, and is therefore over-specified for the more benign conditions in the Baltic. “
Remp goes on to point out that the requirement for the vessel in the North Sea – primarily in the UK or Germany – will be in 2014, “…And we are actively preparing to participate in the first of such tenders fort the North Sea which are expected to be issued next month.” Remp says.
SeaEnergy is now progressing technical work on the O&M vessel design which includes tank testing and completion of detailed engineering drawings “..Both of which are required to put us in a position to initiate construction of our first new-build vessel, once an initial charter has been secured,” Remp says.
Meanwhile the company is talking to potential customers about chartering an existing ship in the near-term for use this winter which would be used to demonstrate SeaEnergy’s wind farm O&M concept, and to generate earlier revenue.
- Offshore wind will lead to ‘advancing army of pylons’ (telegraph.co.uk)
- Wind Energy Update: Which Comes first? The Wind Farm or the Turbine? (prweb.com)
- Fish (heart) oil platforms (junksciencesidebar.com)
Italy’s ENI and Spain’s Repsol are waiting for Venezuela to approve the extraction of gas from a field that has the biggest deposits found so far off the OPEC nation, sources close to the project told Reuters.
South America’s biggest oil exporter is focused on developing its fledgling natural gas industry to generate power and help address electricity shortages that triggered power rationing across the country last year.
Amid delays and setbacks to other offshore development plans, ENI and Repsol completed their exploratory phase at the Cardon 4 block last year with the certification of more than 15 trillion cubic feet (tcf). The government says it has the ability to produce 2,500 million cubic feet per day, almost as much gas as the domestic market in Venezuela consumes.
“We’re still not at the infrastructure stage,” a source at one of the companies told Reuters.
“We have agreed the tariff and we are negotiating with (state oil company) PDVSA about what component of it will be in bolivars and how much will be in dollars while we wait for the declaration that the project is commercial.” Venezuela’s currency complexities — including strict exchange controls, restricted access to hard currency and a tiered rate for converting local bolivars — provide headaches for most foreign companies operating in the country. Once the government has declared the project commercial, the two companies will partner with PDVSA to exploit the block with investments estimated at more than $4.5 billion.
Another source close to the talks said the tariff was higher than $3 per million British Thermic Units, which is close to the international price. The project’s profitability will depend on how much is paid in local currency. “We are happy with the tariff,” said the first source. “Now we are just missing the agreement on how it will be paid.” The source added foreign companies operating in Venezuela were wary after a senior PDVSA official said last week that the government was freezing its liquefied natural gas projects because the gas was needed domestically, and low prices did not support the cost involved.
Cardon 4 includes the promising Perla field, which would be the first offshore area to be exploited in Venezuela. Early production from the project is estimated to be 80 million cubic feet per day and to begin in October 2012.
The country sits on some of the world’s largest gas reserves, which the government says amount to more than 195 tcf. But it has yet to begin producing any commercial gas and instead imports supplies from Colombia.
By Marianna Parraga (Reuters)
- Chinese-built oil rig setting sail for Cuban waters (mb50.wordpress.com)
- U.S. Legislators Want Repsol to Leave Cuba (mb50.wordpress.com)
- Venezuelan oil giant sitting atop a well of trouble (business.financialpost.com)
- US experts eye Cuba oil plans after BP spill (mb50.wordpress.com)
- Chavez says Venezuela’s OPEC quota should grow (seattlepi.com)