Daily Archives: April 5, 2012
Recap: Worldwide Field Development News (Mar 30 – Apr 5, 2012)
| This week the SubseaIQ team added 8 new projects and updated 45 projects. You can see all the updates made over any time period via the Project Update History search. The latest offshore field development news and activities are listed below for your convenience. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar 30, 2012 – Petrobras awarded Saipem a new E&C offshore contract in Brazil for the Lula development. The EPCI contract is for the gas export trunkline Rota Cabiunas, situated in the 
Apr 5, 2012 – Eni has commenced production from the Marulk field in the Norwegian sector of the North Sea. Marulk is Eni’s first operating field in Norway and is part of the PL 122 license held by Eni (20 percent) with Statoil (50 percent) and Dong (30 percent). Marulk is a gas and condensate field with estimated reserves of 74.7 million barrels of oil equivalent and produces 20,000 boepd.
Apr 2, 2012 – Lundin Petroleum has commenced production at the Gaupe field located in the Norwegian sector of the North Sea. Gaupe has estimated gross recoverable reserves of approximately 31 MMboe and is expected to produce about 6 Mboepd. The field is a cross-border subsea tie-back to the Armada platform, located in the UK sector of the North Sea, and will contribute to the doubling of production to 70,000 boepd in late 2015.
Apr 2, 2012 – ATP Oil & Gas awarded Subsea 7 a SURF contract for the Cheviot field in the UK sector of the North Sea. The Cheviot field development will use a moored floating process facility which will import oil and gas from four satellite drill centers allowing oil to be exported via shuttle tankers and gas to be exported to a third party host facility. The contract scope includes the transportation and installation of flexible flowlines and risers, control umbilicals, a 2.6-mile-long (4.2-kilometer-long) 14-inch flexible oil export pipeline and a 30 mile-long (48 kilometer-long) 10-inch rigid gas pipeline, together with the fabrication and installation of associated subsea structures. The contract scope also includes post installation, trenching of the subsea lines, tie-in of the lines to the Octabuoy and drilling centers, testing and pre-commissioning activities for the entire field facilities. Offshore operations are slated to begin in 2014.
Apr 2, 2012 – Shell and Ocean Installer have signed a Letter of Intent for the development of the Draugen field. The contract covers the EPCI services for further development of the subsea infrastructure at the Draugen field, in the context of Shell drilling four infill wells for the purpose of increasing the ultimate recovery factor and accelerating oil production at the field. Ocean Installer will be responsible for all phases of the operation, from planning and engineering to installation and establishment of connections. This includes: procurement and installation of approximately 11.5 miles (18.5 kilometers) oil production and gas lift flexible flowlines and jumpers including pull-in to the Draugen platform, installation of approximately 13-mile-long (21-kilometer-long) umbilicals including pull-in to the Draugen platform; procurement and installation of a T-manifold and protection covers; supply of rock dump; and detailed engineering. The project is expected to start-up immediately and is planned for completion in 2014.
Mar 30, 2012 – Total is mobilizing two rigs to drill a relief well in an attempt to halt a gas leak from the Elgin platform in the North Sea, according to the U.K Department of Energy and Climate Change (DECC). The firm is also seeking a second solution of pumping heavy mud into the well, DECC added. “We believe the hydrocarbons are coming from a rock formation above the reservoir at a depth of 4,000 meters (13,120 feet),” a spokesperson for the firm told Rigzone. The Elgin/Franklin project has been shut-in since Monday, March 26.
Mar 30, 2012 – Aker Solutions has completed the manufacturing and load-out of eight subsea manifolds and six riser bases for Eni’s Goliat project in the Barents Sea. The load-out commenced on March 27, 2012. Aker Solutions’ Goliat contract, signed in September 2009, consisted of engineering, procurement and construction of a complete subsea production system. Subsea hardware deliveries include eight overtrawlable four-slot subsea templates with manifolds, wellheads system, 24 subsea trees, subsea and topside controls systems, 12 miles (20 kilometers) of steel tube umbilicals, work-over equipment and a tie-in and connection system. Goliat, the first oil field to be developed in the arctic waters of the Barents Sea, is scheduled to commence production in 2013. The field has a life expectancy of 15 years.
Mar 30, 2012 – BP will extend the maintenance and modification contract with Aker Solutions, exercising an option in the existing agreement for the Ula, Valhall, Skarv, Hod and Tambar fields. Work under the extended contract will last until April 2014. The original maintenance and modification contract was signed in 2005. Scope of work under the contract includes maintenance support services and brownfield modification projects covering engineering, procurement, fabrication and offshore installation. Maintenance and modification work will help to increase oil recovery rate and extend the life of BP’s fields.
Apr 5, 2012 – Technip received a lump sum contract from Anadarko for the development of the Lucius field. The contract covers installation of a flexible flowline; multiple flexible gas lift jumpers; main gas lift and infield umbilicals; subsea distribution units; electrical; fiber optic and hydraulic flying leads; design and fabrication of the flexible flowline end termination; fabrication and installation of rigid jumpers; burial of flowlines; and flooding and hydro-testing of the flowline system. Offshore installation will occur in 2013 and 2014.
Apr 4, 2012 – Premier Oil reported that by year-end 2011, close to 2 MMboe had been produced from six production wells on the Chim Sao field, which came online in October 2011. An additional three production wells will be available to come on-stream in early 2012 when the four-well water injection system will come online. Furthermore, a well deepened into the Oligocene directly beneath the main field proved an estimated 56 feet (17 meters) of net hydrocarbon-bearing pay, and an additional well to be drilled in early 2012 will accelerate production from a shallow reservoir that has larger reserves than initially estimated. The CS-N2P well, a development production well for the Chim Sao project, intersected the shallow part of a previously undrilled fault terrace to the northwest of the Chim Sao field. The well encountered a 66 feet (20 meter) oil column in an independent closure within good quality Upper Dua sandstones. The plan is to further appraise this new accumulation in 2012 as a near-field tie-back opportunity.
Apr 2, 2012 – Otto Energy has recommenced production at the Galoc oil field offshore Palawan in the Philippines following a planned shutdown for refurbishment of the FPSO. During the shutdown, the FPSO Rubicon Intrepid underwent planned re-certification, maintenance, inspection and turret installation work. Otto said the upgrade of the FPSO mooring system should increase the reliability and uptime of the FPSO and is a crucial component of infrastructure to enable the Galoc Joint Venture to move ahead with a potential phase II development of the Galoc field.Related articles
- French Guiana: Shell to Begin Guyane Drilling in Mid 2012 (mb50.wordpress.com)
- Recap: Worldwide Field Development News (Mar 16 – Mar 22, 2012) (mb50.wordpress.com)
- Recap: Worldwide Field Development News (Mar 9 – Mar 15, 2012) (mb50.wordpress.com)
- Recap: Worldwide Field Development News (Mar 23 – Mar 29, 2012) (mb50.wordpress.com)
- Recap: Worldwide Field Development News (Mar 2 – Mar 8, 2012) (mb50.wordpress.com)
- Australia: Saipem Lands Ichthys LNG Work (mb50.wordpress.com)
- Brazil: OGX Encounters Huge Hydrocarbon Column in Santos Basin (mb50.wordpress.com)
- Recap: Worldwide Field Development News Feb 3 – Feb 9, 2012 (mb50.wordpress.com)
Ensco in $645m drillship buy
New York-listed Ensco has ordered another ultra-deepwater drillship from Samsung Heavy Industries at an estimated cost of $645 million, just days after inking a long-term deal with BP for another rig in the series.
The Ensco DS-8 will be the sixth Samsung DP3 drillship in the offshore driller’s fleet when it arrives in the third quarter of 2014.
Ensco has also secured an option to acquire a further two of the vessels.
The fifth rig, Ensco DS-7, is currently being built in South Korea with delivery slated for the second half of this year.
On Monday, BP hired the fourth drillship, the Ensco DS-6, on a five-year deal that will ultimately garner Ensco $1 billion at a dayrate of around $522,000.
Ensco said the latest order came in response to “the high level of customer demand driven by an ongoing trend of successful offshore discoveries”.
Like the previous five ordered since 2007, the new drillship will be equipped for ultra-deepwater drilling in water depths of up to 10,000 feet, extendable to 12,000, and a total vertical drilling depth of 40,000 feet.
Ensco’s three active DP3 drillships are currently contracted into 2016 in the US Gulf of Mexico, Brazil and West Africa.
Related articles
- South Korea: Seadrill Confirms Samsung Drillships Contracts (mb50.wordpress.com)
- USA: Anadarko Contracts ENSCO 8506 Semi (mb50.wordpress.com)
- South Korea: SHI to Build Seventh UDW Drillship for Pacific Drilling (mb50.wordpress.com)
- South Korea: Pacific Drilling Extends Option for its 7th Drillship (mb50.wordpress.com)
- Pacific Scirocco Drillship Begins Work in Nigeria (mb50.wordpress.com)
- South Korea: Stena Drilling Wins 5 Year Contract for Its Newbuild Stena IceMAX Drillship (mb50.wordpress.com)
- UK: Ensco Ranks 1st Among Offshore Drillers by Costumer Satisfaction (mb50.wordpress.com)
- South Korea’s Samsung Wins USD 1.1 bln Order for Two Drillships (mb50.wordpress.com)
Exclusive: China ship insurer deals new blow to Iran oil exports
By Randy Fabi
SINGAPORE | Thu Apr 5, 2012 10:50am EDT
(Reuters) – A major Chinese ship insurer will halt indemnity cover for tankers carrying Iranian oil from July, dealing a blow that narrows the insurance options for Tehran’s main export already constricted by payment barriers caused by Western sanctions.
With Western sanctions on Tehran increasing, sources at the China P&I Club told Reuters on Thursday it did not want to stand alone in the market, especially after insurers in Japan and Europe plan to either limit or ban their own coverage for tankers operating in Iran.
This is the first sign that refiners in China, Iran’s top crude buyer, may struggle to obtain the shipping and insurance to keep importing from the Middle Eastern country. Iran’s other top customers — India, Japan and South Korea — are running into similar problems, raising questions on how Tehran will be able to continue to export the bulk of its oil.
Crude oil prices are up nearly 14 percent since the start of this year on concerns that Iranian supplies may be disrupted due to Western sanctions. Brent crude traded above $123 a barrel on Thursday. <O/R>
The China P&I Club, whose members include major Chinese shipping firms Sinotrans (0368.HK) and COSCO Group COSCO.UL (600428.SS), is the first Chinese maritime insurer to confirm it will halt business with tankers operating in Iran.
“Many ship owners want to join our club and want our club to cover this risk, but considering all these regulations from the United States and the EU, I know the China P&I club will not do that,” said a Hong Kong-based official with the insurer, which provides coverage to more than 1,000 vessels.
“The China P&I club will not take the risk. We have asked our members not to go there, if they go there, they take their own risk,” the official added, who wished not to be named because he was not authorized to speak to the media.
Starting in July, European insurers and reinsurers will be barred from indemnifying ships carrying Iranian crude and oil products anywhere in the world, in line with sanctions on Tehran.
Iran sells most of its 2.2 million barrels per day of oil exports in Asia, where China, India, Japan and South Korea are the four biggest buyers.
Growing pressure by the West has led some Iranian oil buyers to cut imports, but the problem over obtaining maritime insurance could altogether halt shipments to Asian customers. Chinese imports from Iran are already down more than 21 percent in the first two months of 2012 to around 395,000 barrels per day compared to the same period last year.
FEW ALTERNATIVES
Along with Russia and the Middle East, China is one of the few remaining alternatives for Asian ship owners to replace European-based coverage. It is not clear if other Chinese ship insurers also planned to follow China P&I Club and cut coverage.
“I really don’t know what will happen,” said a Beijing-based Chinese industry official. “We are talking about $1 billion in coverage (per tanker). No single insurance company can handle that.”
European insurers provide cover for the majority of the world’s oil tanker fleet. Industry officials say ship owners who still legally trade with Iran will be pressed to find sufficient, or comprehensive, alternative insurance.
“Western insurance companies, taking advantage of their market dominance, have been raising insurance costs gradually for ship owners,” said a Chinese shipping executive.
“Now they say they don’t want to provide cover to those disputed regions. China should really make its own comprehensive considerations (on this issue).”
An official with the China P&I club held out hope the European Union would decide on a last-minute easing of the sanctions. European nations are divided over the sanctions, while oil refiners, insurers and tanker owners face lost business opportunities with OPEC’s second-largest producer.
“As far as I’ve seen with these new published sanctions, it seems to us that there might be some room for compromise,” said a Beijing-based club official, who wished not to be named.
China P&I Club is not a member of the Group of International P&I Clubs, an association of customer-owned ship insurers which cover 95 percent of the world’s tankers against pollution and personal injury claims. The Chinese insurer has applied to join the club and could be taking the action on Iranian coverage to ensure it becomes a member, industry sources said.
The Japan P&I club, the only Asian-based member of the Group of International P&I Clubs, said last month it would only be able to provide a fraction of cover for tankers operating in Iran.
“It’s now non-life (insurers) and shippers who can tell us how many cargoes we will be able to ship from Iran,” said a manager from a Japanese firm that buys Iranian crude, adding that importing cargoes without insurance was unthinkable.
(Additional reporting by Aizhu Chen in Beijing, Risa Maeda in Tokyo and Meeyoung Cho in Seoul; Editing by Ed Lane)
Related articles
- Japan refiners want force majeure to cover Iran oil shipping ban (mb50.wordpress.com)
- India ships will lose insurance due to Iran sanctions, may look to China – Reuters (reuters.com)
- S&P: Tankers Brace For Headwinds From Iran Trade Sanctions (gcaptain.com)
- Iran oil exports fall as sanctions take toll (business.financialpost.com)
More Saudi Supertankers Headed for the US
Aries Star, a 317k DWT VLCC, image courtesy VELA International
By gCaptain Staff On April 5, 2012
LONDON (Dow Jones)–Saudi Arabia’s state shipping company, Vela, is set to ship more oil to the U.S. this month, after a flurry of activity in March caught the attention of market participants, shipbrokers told Dow Jones Newswires Thursday.
Vela has chartered at least three supertankers, capable of carrying around 6 million barrels of oil, to ship crude to the U.S. later this month, shipping fixtures show.
“They definitely are having a more active program going west,” a shipbroker said.
In mid-March the Saudi shipping company chartered 11 ships to carry oil to the U.S. Gulf, in part to feed the expansion of a Gulf Coast refinery co-owned by Saudi Arabia’s national oil company, a person familiar with the matter said.
-By Sarah Kent, Dow Jones Newswires
Related articles
- Saudi Vela To Send 11 Supertankers To US In March/April (gcaptain.com)
- Saudi Arabia sends tankers to US with pledge to bring down oil price (telegraph.co.uk)
- Oil Prices: Saudi Pumping Surge & US-EU Iran Strategy (globalbarrel.com)
- Oil, politics, talk and reality- Mar 21 (energybulletin.net)
- Tanker Bookings Indicate More Saudi Oil Headed To U.S. (amp2012.com)
- India Nudges Saudi Arabia…Yo Send Us More Oil Please (gcaptain.com)
DOJ, liberal groups that oppose voter ID require photo ID to enter their buildings
U.S. Attorney General Eric Holder is currently blocking implementation of voter ID laws in South Carolina and Texas, claiming such measures are “unnecessary,” discriminatory and would make it harder for minorities to vote.
But if you’re planning to visit Holder’s office in Washington, D.C., you better bring a photo ID. The Department of Justice has two armed guards stationed outside its headquarters to check IDs of anyone who wants to enter — employees and visitors.
Holder’s politically motivated crusade against voter ID laws has the support of liberal advocacy organizations ranging from the Center for American Progress and Media Matters to the Lawyers’ Committee for Civil Rights Under Law and the Advancement Project.
Each of these organizations has criticized photo identification for voting, yet they require it to enter their Washington, D.C., offices as well. There’s even a sign in the building of the Lawyers’ Committee for Civil Rights Under Law: “ALL VISITORS MUST SHOW ID.”
Holder is able to block laws in South Carolina on Texas because they are subject to Section 5 of the Voting Rights Act, a civil rights-era law that gives the Department of Justice authority over voting changes. It remains unclear if those states will be able to enforce their laws for this November’s election.
“The Obama-Holder Department of Justice has launched an all-out war on voter ID and other measures,” former Ohio Secretary of State Ken Blackwell said upon launching a new initiative called Protect Your Vote. “Although Holder’s actions are purported to prevent African-Americans from being disenfranchised, in reality they serve as a crass political attempt to ensure his boss gets re-elected this year.”
Liberals have long trotted out false arguments about voter ID laws, claiming they suppress the vote among those individuals who do not have photo identification. But a 2008 U.S. Supreme Court case upholding Indiana’s voter ID law revealed there was no such hardship. Opponents of the law were unable to produce a single plaintiff who could plausibly claim inability to get a photo ID. In addition, states with longstanding voter ID laws, such as Georgia and Indiana, have actually experienced an increase in turnout of minority voters.
Rob Bluey directs the Center for Media and Public Policy, an investigative journalism operation at The Heritage Foundation. Follow him on Twitter: @RobertBluey
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- Voter ID (tarpon.wordpress.com)
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Chariot Spuds Tapir South Prospect Offshore Namibia
Chariot Oil & Gas Limited announced that its wholly owned subsidiary, Enigma Oil & Gas Exploration (Pty) Limited, has commenced drilling the first well, 1811/5-1, of its 4 to 5 well drilling program offshore Namibia. Drilling operations began this morning on the Tapir South prospect using the Maersk Deliverer (UDW semisub) drilling rig, with Chariot as Operator.
The prospect has a 25 percent Chance of Success and a mean un-risked prospective resource potential of 604 million barrels of oil. In the event of success, the results of this well will significantly increase the Chance of Success on certain of the Company’s other prospects within the Tapir Trend.
Tapir South (1811/5-1) will be only the second well ever to be drilled in the Namibe Basin. It is located 49.7 miles (80 kilometers) offshore Namibia in the Company’s northern block 1811A, in which Chariot has a 100 percent equity interest. The well is being drilled to an estimated total vertical depth subsea of 16,732 feet (5,100 meters) and, as announced following the Placing of March 20, 2012, this will now include extended drilling time to ensure that one of the deeper identified targets is drilled and fully evaluated. This deeper target is believed to be a carbonate section, age equivalent to the reservoir in recent sub-salt discoveries in the on-trend Kwanza basin offshore Angola. The drilling and logging operations are expected to take approximately 70 days and a further announcement will be made when the well results are known.
The Tapir South prospect is part of the Tapir Trend where three prospects have been identified on a large ridge formed by a rotated fault block containing the potential carbonate target, draped by deep marine sediments with turbidite sandstone levels forming a stack of overlying targets. Tapir South is the southernmost of three culminations on the ridge and forms a focal point for charge migration from an adjacent basin in which excellent oil prone source rocks are believed to be present and currently generating oil.
The second well to be drilled in the Chariot exploration program, Kabeljou (2714/6-1), targeting the Nimrod prospect is now likely to spud earlier than previously reported. The Operator has informed Chariot that it now expects to secure a drilling unit in 3Q 2012.
“We are very pleased to announce the spud of our Tapir South well in the northern license area which marks that start of a 4-5 well drill program running through to the end of 2013. The results of this first well will be invaluable to furthering our knowledge and understanding of the Namibe basin. Owing to the additional funding raised last month we can now fully explore the deeper targets within the prospect and we look forward to updating the market with the well results in due course,” commented CEO Paul Welch.
Related articles
- Namibia: Spectrum Starts Seismic Survey in Luderitz Basin (mb50.wordpress.com)
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Huisman to Build 500mt Yard Crane and 150mt Flexlay System for Technip (France)
Huisman, the worldwide specialist in lifting, drilling and subsea solutions, has secured new contracts with Technip, a world leader in project management, engineering and construction for the energy industry, for a 500mt Yard Crane and a 150mt Flexlay System.
Both the crane and the pipelay system will be designed and constructed by the Huisman facilities in the Netherlands and the Czech Republic. Previously, Huisman delivered the installation equipment onboard Technip’s flagship deepwater pipelay and subsea construction vessel, “Deep Blue”.
The 500mt Yard Crane is the third crane of this type built by Huisman, however the first to be used for onshore purposes. This state-of-the-art crane derives from Huisman’s many years of experience in the design, fabrication and service of heavy lifting equipment. The full revolving crane combines unique technical features, such as a full electric variable frequency drive system, a low overall construction weight and a small minimum operating radius. Furthermore all the major equipment, such as the hoist winches, is installed inside the enclosed crane house. These technical features result in a low power consumption, lower operational costs and maximum operability. The crane will be installed, commissioned and tested at Technip’s Flexi France facility in Le Trait, France, mid-2013.
The 150mt Flexlay System will be designed and built for the installation of flexible pipelines. The system can be separated into two modules, allowing for easy installation onboard. A definite first for a Flexlay System of this size is the two openable and retractable 75mt tensioners which allow for safe and efficient installation of large subsea infrastructure components such as umbilicals, risers and flowlines. The system’s deepwater lowering function allows for installation in up to 3,000m water depth. Delivery of the 150mt Flexlay system is scheduled for the end of 2013.
Huisman currently has a number of cranes in production, varying from 300mt to 4,000mt, and a 5,000mt Offshore Mast Crane is currently being finalized. Pipelay systems currently under construction include Multi-lay Systems for the Aegir and a new build vessel for Ezra, a Flexlay System for the newest Subsea 7 vessel and the S-lay System for the Seven Borealis.
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- USA: Technip Rings Tubular Bells (mb50.wordpress.com)
- ExxonMobil Awards Technip GoM Subsea Contract (mb50.wordpress.com)
- Norway: North Sea Giant Stays with Technip (mb50.wordpress.com)
- Norway: Technip Participates in Statoil’s Vilje and Visund Developments (mb50.wordpress.com)
- Deep-Water Lifting: A Challenge for the Industry (mb50.wordpress.com)
- Australia: Technip Wins Wheatstone Platform Design Contract from DSME (mb50.wordpress.com)
STX Finland Delivers Research Vessel to South Africa
STX Finland Rauma Shipyard delivered a polar supply and research vessel to the South African government’s Department of Environmental Affairs on April 4th.
The vessel named S.A. Agulhas II is a multipurpose vessel, and can operate as a supply, research and passenger vessel, as well as an icebreaker.
The flag-changing ceremony was witnessed by many, among which were the representatives from the client, the South African Government’s Department of Environmental Affairs, as well as the Embassy of South-Africa in Finland, The South African Maritime Authority, classification society Det Norske Veritas, STX Finland and the press.
Toivo Ilvonen, the Director of STX Rauma Shipyard, said:”We are proud to deliver this multipurpose vessel to the client. The project has offered valuable experience and expertise in the design and building of demanding polar research and supply vessels to the personnel of STX Rauma shipyard and all our partners involved in the project”.
The ice-strengthened vessel can accommodate a crew of 45 and about 100 passengers. It is approximately 134 metres long, capable of carrying out marine and geological sea floor research, and keeps continuous record of meteorological data for weather services.
Continents of the World
Mb50's "Liquid Mud" Rant 