Daily Archives: February 16, 2012
|This week the SubseaIQ team added 15 new projects and updated 33 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.|
- Recap: Worldwide Field Development News Feb 3 – Feb 9, 2012 (mb50.wordpress.com)
- Ichthys: The Largest Subsea Gig for McDermott (Australia) (mb50.wordpress.com)
- Australia: All Ichthys Approvals on Track, INPEX Says (mb50.wordpress.com)
- Recap: Worldwide Field Development News (Jan 27 – Feb 2, 2012) (mb50.wordpress.com)
- Australia: Saipem Lands Ichthys LNG Work (mb50.wordpress.com)
- Recap: Worldwide Field Development Jan 6 – Jan 12, 2012 (mb50.wordpress.com)
- Recap: Worldwide Field Development News (Jan 20 – Jan 26, 2012) (mb50.wordpress.com)
Luke Johnson 16 February 2012 17:51 GMT
Zachry and CB&I will engineer and design a trio of 4.4-million-tonnes-per annum liquefaction trains and corresponding pre-treatment facilities that will be located near the existing Freeport LNG regasification terminal at the Quintana Island terminal near Freeport, Texas.
The two companies will develop a fixed-priced, fixed-schedule proposal within the three-train design for both a one-train initial development and a two-train initial development, Freeport said in a statement.
“This optionality will provide Freeport LNG with the ability to choose the optimum size of the initial phase of the project based upon customer demand and financing considerations,” Freeport said.
Financial terms of the deal were not disclosed.
LNG companies like Freeport and Cheniere Energy – which, just a few years ago, were anticipating being net importers of the fuel – are trying to reinvent themselves as exporters in the wake of a gas glut in the US thanks to the shale boom.
Cheniere is well on its way, having secured sales deals and proper permitting to export gas as soon as 2015.
Freeport is in the process of securing permits. The Department of Energy has given the OK to export LNG while Freeport has started preliminary applications for approval from the Federal Energy Regulatory Commission (Ferc).
It expects to file a formal Ferc application by the end of the first quarter this year and hopes to have all permits in place to begin construction early next year.
Construction will take about 32 months, Freeport says on its website, with start-up at the facility expected in early 2016.
The liquefaction facility will have a processing capacity of about 1.9 billion cubic feet per day of gas. The gas will come via interconnecting intrastate pipeline systems operated by Dow Pipeline, Kinder Morgan and Brazoria Interconnector, through Freeport LNG’s existing Stratton Ridge metre station.
The gas will be liquefied and stored in full-containment LNG storage tanks as it awaits export by tanker, according to Freeport’s website.
- Macquarie Vies To Sell U.S. LNG To India (mb50.wordpress.com)
- USA: Seventeen LNG Cargoes Re-Exported in Jan-Nov (mb50.wordpress.com)
- USA: Cheniere Enters into Contract with Bechtel (mb50.wordpress.com)
- USA: Cheniere, KOGAS Ink Sabine Pass LNG Deal (mb50.wordpress.com)
- USA: Sempra Files with DOE to Export LNG from Cameron Terminal (mb50.wordpress.com)
- GAIL to buy 3.5 million tonnes of LNG from U.S. firm (mb50.wordpress.com)
- USA: Societe Generale Says Cheniere Can Make Sabine Pass Export Decision After Fenosa Deal (mb50.wordpress.com)
St. Tammany News
Published on Wednesday, February 8, 2012 12:09 AM CST
St. Tammany Parish may seem an unlikely place for the drilling permit slowdown to affect business, but the 2010 BP oil spill and now delays from the permit moratorium and lack of permitting for deep water and shallow wells in the Gulf of Mexico are doing just that..
“Absolutely, St. Tammany has many businesses directly and indirectly connected to the oil industry, and they are affected by the industry slowdown caused by the permitting delays,” said Executive Director Brenda Reine Bertus of St. Tammany Economic Development Foundation.
“Some of the parish’s businesses service rigs, some rehab products used on rigs and many are tucked away in the parish. During the study completed by GNO Inc., it was evident many are simply trying to hold on until things turn around,” she said.
Suppliers of rigs, oil supply boats, caterers and equipment already know how hard hit they are, but this has been confirmed by the release of a study of the impact of decreased drilling permit approvals on businesses conducted by Greater New Orleans Inc.
“Offshore service and supply companies are the core of the oil and gas industry in Louisiana,” said Lizette Terral, president of the New Orleans region for the J.P. Morgan Chase Bank. “These small- and mid-sized companies are dependent on activity in the Gulf for their business, and as a result they have been disproportionally hurt by the ongoing permit slowdown.”
Participants in the survey represented small, medium, and large offshore supply and service companies in numerous industries. Answers provided included details on the revenue, cash reserves, employment, business plans, and personal finances of their respective companies.
Key findings of the study show that 46 percent of businesses have moved all or some of their operations away from the Gulf of Mexico. In addition, 41 percent of businesses are not making a profit. Most, or 76 percent have lost cash reserves, and 27 percent of businesses have lost more than half of their cash reserves.
Half of the businesses have laid off employees, and 39 percent of businesses have retained workers but have reduced their hours and/or salaries.
Worst of all, 82 percent of business owners have lost personal savings as a result of the permit slowdown. Another 13 percent have lost all of their savings.
“Small– and mid-sized companies are the hidden victims of the permit moratorium and ensuing slowdown,” said Michael Hecht, president and CEO of GNO, Inc. “While global companies can simply shift their assets, these Louisiana companies — through no fault of their own — have endured significant, and now documented, financial hardships.”
“Through this study, GNO, Inc. has determined that the federal moratorium and the permit slowdown created significant negative “unintended consequences” for local businesses. While larger companies have deep cash reserves and the ability to shift assets outside of the country, Louisiana businesses dependent on the Gulf of Mexico for business have experienced significant financial hardship,” reported GNO, Inc.
“The smaller companies are digging into their personal cash reserves to keep going because many of these job require specialized training. In the 1980’s when there was an industry slowdown, the employees left and were very difficult to replace when business increased,” Bertus said. “They want to keep these specialized employees at all costs. Another problem is that the really small companies can’t just pick up and move elsewhere like larger companies.”
In 2011, the average approval time for a drilling plan was 109 days, compared to the historical average of 61 days. All deep-water plans that include any type of drilling activity must now undergo an environmental assessment (EA) process; for those plans requiring EAs in 2011, the average approval time was 213 days, significantly higher than the overall average approval time. Additionally, in 2011, only 34 percent of plans submitted were approved, compared to the historical 73.4 percent approval rate.
Deep-water permit issuance continues to lag the monthly average observed in the year prior to the oil spill. Only two deep-water permits are being issued per month since November 2011, representing a monthly reduction of 3.8 permits, or 66 percent reduction from the average of 5.8 permits per month. This number also represents a five permit or a 71 percent reduction from the historical average of seven permits per month over the past three years.
Shallow-water permit issuance is also below the historical average. Since November 2011, 2.3 shallow water permits, on average, were issued. That number represents a decrease of 4.8 permits or 68 percent from the monthly average of 7.1 permits per month observed in the year prior to the oil spill. This number also represents a reduction of 12.4 permits or a 84 percent reduction from the historical average of 14.7 permits per month over the past three years, according to the gulf permit index.
A lack of permit approval can be taken as a lack of future business in the industry and many small and mid-size businesses have been hit hard with possible lack of future business as they had known it before the oil spill, thus causing many of them to either relocate or close completely, as the study has shown.
The permitting process has become lengthy and mired in red tape, which has slowed the entire industry, affecting businesses throughout the area, even in St. Tammany.
- Drilling ban had ‘hidden victims’ (mb50.wordpress.com)
- ‘The new normal’ (mb50.wordpress.com)
- IBD: Hidden Victims of Obama’s Drilling Ban (junkscience.com)
- Hercules sees more rigs in GOM (mb50.wordpress.com)
- Obama Administration Approving Only 35 Percent of Gulf Drilling Plans (papundits.wordpress.com)
Yorkshire-based cable cleat manufacturer, Ellis has turned the tables on the international trend for cheaply manufactured products from the Far East being sold into the UK by securing a significant order from China.
The company’s Emperor cleats have been specified by COSCO Engineering for installation on the Vantage Drilling Company’s new drill ship, the Dalian Developer. The order was secured as a result of the company’s persuasive technical argument, which highlights the vital importance of correctly tested and specified cable cleats.
Tony Conroy, the export sales manager for Ellis, explains: “The growth in cheaply manufactured cleats has certainly muddied the picture in recent times, but we have always remained confident that our approach would eventually see our technically superior products come to the fore in China.”
Ellis’ technical approach has brought the company widespread global success and its cleats are now used in a number of major projects in the oil, gas and power generation industries including Lusail City in Qatar and the Kashagan project in Kazakhstan.
“It certainly seems like our technical and safety based message is really striking home,” continued Conroy. “People now know that underspecified cleats can pose serious safety issues. And when you consider the amount of money some of the projects we’re working on are worth you certainly wouldn’t want to be the specifier who cut costs by ordering cleats that were simply not suitable for the job.”
Ellis is supported by a worldwide network of specialist distributors covering Europe, Middle East, Asia, South America, Australia, Kazakhstan and the United States. For this latest order the company’s export team worked closely with Hong Kong distributor, Wang Yip Hong (J&P) Limited and its Chinese partner, Senkori Trading (Dalian) Co.
The $500million Dalian Developer is being built at COSCO’s Dalianshipyard in China and is due for completion in July 2012. It is a MPF 1000 6th Generation Ultra Deepwater Drillship for use in harsh environments, has a hull size of 291m x 50m, and is designed to drill wells at ultradeep water depths up to 10,000ft and drilling depths exceeding 30,000ft.
- Norway-Based Aker Solutions to Supply Drilling Equipment for Vantages Drillship
- China: Cosco Provides Update on Dalian Developer Drillship
- Closing the Safety Gap is Priority, Says WSS China General Manager
- Vietnam: Salamander Energy Moves Aquamarine Driller Jack-Up to Cat Ba-1X Prospect
- Dalian seeks to become first dual-listed port in China
- Pacific Scirocco Drillship Begins Work in Nigeria (mb50.wordpress.com)
- South Korea: Pacific Drilling Extends Option for its 7th Drillship (mb50.wordpress.com)
- USA: Busy December Ahead of Pacific Drilling’s Drillships (mb50.wordpress.com)
- Is the Industry Ready to Drill in the Arctic? Stena Drillmax Ice Nears Delivery (mb50.wordpress.com)
- Dolphin Drilling to Provide Two Drillships for Anadarko’s Mozambique Operations (mb50.wordpress.com)
- Ophir Begins with Drilling Operations Offshore Tanzania (mb50.wordpress.com)
Owen Kratz, Helix’s Chairman and CEO, stated, “We are leveraging our market and technological leadership in subsea well intervention along with the proven success of the Q4000 platform to satisfy an increasing market interest for specialized deepwater well intervention services. We have previously indicated that we intend to address this growing market by delivering new capacity and will continue to expand this business segment further.”
Helix has completed the detailed engineering for the new vessel and expects to commence construction in the near future.
The Q4000 (image) is a unique multi-purpose vessel designed to operate in depths up to 3,048 metres of water – a stable platform for a wide variety of tasks, including slimbore drilling, slimbore completion and decommissioning well intervention.
Helix Energy Solutions Group, headquartered in Houston, Texas, is an international offshore energy company that provides development solutions and other key life of field services to the energy market as well as to its own oil and gas business unit.
- USA: Cliff Chamblee Steps Up as EVP-Contracting Services at Helix Energy Solutions
- Maridive Inks Long Term Exclusive Cooperation Agreement with Helix for O&G Activities in Egypt
- USA: Helix ESG Announces Startup of Phoenix Production
- USA: Helix Provides Update on Deepwater Containment System
- USA: Helix Delivers Another Strong Quarter, CEO Says
- UK: Talisman Selects Helix Well Ops for Subsea Works on Its Assets (mb50.wordpress.com)
- McDermott signs agreement for spool base services in Gulf of Mexico (mb50.wordpress.com)
- USA: Cal Dive Secures Well Intervention Contract for Uncle John Vessel (mb50.wordpress.com)