Monthly Archives: July 2012

U.S. Expected to Approve Expanded LNG Exports to Japan

The US policy of LNG exports to Japan is expected to see a significant change in near future as more export approvals are considered.

A report published by Baker & McKenzie has said that last year the US government approved exports from a second terminal, and decisions on eight other applications for export approval are expected later this year.

Implications for Japanese LNG buyers and investors

The report stressed that expanded U.S. LNG exports represents an opportunity not only for Japanese LNG buyers to diversify their supply sources with shale gas but also at more competitive pricing linked to Henry Hub prices rather than oil prices.  Japanese companies also could establish value chains in the U.S. by investing in projects to build export facilities and by acquiring interests in shale gas fields.

Since 1967 the Kenai LNG Plant in Alaska, which produced all eight of the LNG cargoes shipped from the U.S. to Japan in 2011, had been the only LNG plant with export approval.  This changed last year when the Sabine Pass facility in Louisiana obtained export approval.  Eight other applications for export approval are now pending.

Export approval process and outlook

Under the Natural Gas Act gas exports require permission from the federal government.  Such permission is only granted if the Department of Energy (DOE) determines that the proposed exports are consistent with the public interest.  Exports to 17 countries which have free trade agreements (FTAs) with the U.S. are deemed consistent with the public interest and the DOE must approve exports to these countries “without modification or delay”.  In contrast, approvals for exports to non-FTA countries, including Japan, are subject to a lengthy public interest finding process which allows for comments, protests, and motions to intervene from interested parties.

The applicable legislation does not require the DOE to take action on applications within a certain timeframe.  After Sabine Pass received approval for exports to non-FTA countries in May last year, the DOE suspended consideration of all applications pending the results of a study on the impact of exports on the domestic energy market.  This followed complaints from some U.S. lawmakers who were concerned that exports might increase domestic prices.  The domestic market impact study was initially scheduled to be completed by the first quarter of this year, but it is still pending and is now expected to be completed later this summer.  Accordingly, none of the pending applications are likely to be approved until the fourth quarter of this year at the earliest.

There are, however, some reasons to believe there is political support for expanding LNG exports to non-FTA countries such as Japan.  For example, on July 2, 2012, a bipartisan group of 21 members of Congress from states with shale gas deposits sent a letter to Energy Secretary Steven Chu urging the DOE to expedite the pending LNG export applications.  In February, Secretary Chu said he supports LNG exports, and Prime Minister Yoshihiko Noda also said he discussed expanding LNG exports when he met with President Barack Obama on April 30, 2012.

Actions to consider 

• Conduct preliminary due diligence on LNG projects with pending non-FTA export approval applications, as these projects are likely to be now seeking LNG buyers and equity investors.

• Monitor the DOE’s non-FTA export approval process.

• Investigate the compatibility of LNG produced from U.S. shale gas with regasification facilities and pipeline networks in Japan

Conclusion

Given the currently wide differential between the Henry Hub spot price used for trading on the New York Mercantile Exchange (NYMEX) and JCC pricing, expanded LNG exports produced from U.S. shale gas fields is a potential game changer for the gas market in Northeast Asia, and Japan in particular.  From the Japanese buyer’s perspective, it is clear that approvals for further export terminals is an important development to monitor in order to position themselves as potential buyers and equity investors.  For more information, please contact Colin Cook or Hiromitsu Kato.

Source: Baker & McKenzie via: Source

Eagle Ford a contender for top U.S. play

By Vicki Vaughan

Highly productive wells and the vast size of the Eagle Ford Shale are combining to make the South Texas shale play a contender for being the nation’s best, according to a new report.

The report, from information and analytics firm IHS, looked at well performance for oil and oil-rich liquids in the Eagle Ford as well as in the Bakken Shale of North Dakota and Montana, currently the nation’s top play. The Bakken has more wells than the Eagle Ford, but so far, on a per-well basis, the Eagle Ford seems to be producing more than the Bakken.

The Bakken is more established, and the Eagle Ford is still developing.South Texas

This IHS report is part of a broader study that’s under way of 27 of the nation’s shale plays.

The IHS analysis shows that “Eagle Ford drilling results appear to be superior to those of the Bakken,” said Andrew Byrne, director of equity research at IHS and the study’s author.

The Bakken shale is the play against which others are measured, Byrne said, because “it was the key play that really opened up development of unconventional resources” using high-tech drilling methods and hydraulic fracturing.

The Bakken first began to show great promise about 12 years ago, Byrne said.

“The results from the Bakken were so strong that it set the standard by which all others will be measured. It was the one play that incited the industry into pursuing these opportunities,” he said.

Now, though, comes the Eagle Ford.

Wells in the Eagle Ford Shale have a stronger flow – 300 to 600 barrels a day or oil and oil-rich liquids, based on average production in a peak month – than in the Bakken, where flow ranges from 150 to 300 barrels a day.

“One of the reasons we really like the Eagle Ford is its potential as a large total resource. It could be one of the best, if not the best, in North America,” Byrne said.

“The Eagle Ford covers such a vast area. That also makes this such a strong play.”

The Eagle Ford sweeps 400 miles from East Texas to counties south of San Antonio and on to the border.

The play “gets uniformly strong results, and that’s making the play look that much bigger and better,” Byrne said.

“All plays essentially have sweet spots. What makes the Eagle Ford so good is that the noncore stuff is delivering strong results also. In some other plays, it’s only the sweet spot that’s economic.”

2012 prediction

The Center for Community and Business Research at the University of Texas at San Antonio has also prepared studies of the Eagle Ford Shale. Center Director Thomas Tunstall predicts that the Eagle Ford Shale will produce 65 million barrels of oil for 2012. Oil production in the Eagle Ford reached 36.6 million barrels in 2011, according to Texas Railroad Commission data.

It’s somewhat difficult to predict production from the shale because the rate of production is accelerating, Tunstall said.

IHS doesn’t yet have an estimate of all the oil that is in the Eagle Ford.

“We’re working on that,” Byrne said.

Last week, Steve Trammel, senior manager of industry affairs for HIS, said in an interview that rig counts are declining in shale plays with much more natural gas than oil because of low natural gas prices.

But drilling is on the rise in shale with oil and “liquids-rich” areas, where wells can tap a mix of oil and condensate, a light oil, and “wet,” or liquid, natural gas, Trammel said.

Looking ahead

In fact, the highest average monthly production in the Eagle Ford is coming from the formation’s liquids-rich window, Byrne said.

Asked which might be the next hot play, Byrne said: “We haven’t officially put out that opinion yet. That will have to be reserved until we finish our study.”

The energy industry is “very creative,” he noted. “It seems like every quarter another play shows up.”

vvaughan@express-news.net

Source

Recap: Worldwide Field Development News Jul 20 – Jul 26, 2012

This week the SubseaIQ team added 2 new projects and updated 29 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.

Africa – West

Rialto Spuds Gazelle-P4 Development Well

Jul 26, 2012 – Rialto Energy spud the Gazelle-P4 development well using the GSF Monitor (350′ ILC) jackup. Gazelle-P4 is testing the oil potential of the UC-2 and UC-4 oil reservoirs as well as the gas potential of the UC-3, UC-5, LC-1 and LC-2 gas reservoirs discovered by the IVCO-12 and IVCO-21 wells. The Gazelle-P4 well is expected to take approximately 45 days.

Project Details: Gazelle

N. America – US GOM

Murphy to Appraise Diamond in GOM

Jul 25, 2012 – Murphy announced plans to appraise its Diamond discovery at Lloyd Ridge Block 370 in the Gulf of Mexico. Diamond is estimated to contain between 400 billion and 500 billion cubic feet of gas, according to Murphy Chief Executive Claiborne Deming. Depending on the results, Murphy will either keep the rig on site for appraisal drilling or move it to a third prospect, Emerald. Located in Lloyd Ridge Block 317, the Emerald prospect potentially has 150 Bcf of gas in recoverable reserves.

Project Details: Diamond

Newfield Mulling Winter Development Options

Jul 25, 2012 – Deep Gulf Energy reported that the Winter discovery, which was drilled in June 2009, is temporarily abandoned as various development options are under consideration. The discovery is in close proximity to the DGE operated GB 339 Sargent well that is tied-back to the GB 72 fixed platform.

Project Details: Winter

N. America – Canadian Atlantic

Husky Energy to Finalize White Rose Extension Project

Jul 24, 2012 – In May 2012, Husky filed a project description with regulators for the White Rose Extension project. The company expects to make a decision on a preferred development option later in 2012, which will use existing infrastructure at the White Rose field and the existing SeaRose FPSO facilities for processing and storage.

Project Details: White Rose

Sea Rose FPSO to Resume Production in 3Q12

Jul 24, 2012 – The Sea Rose FPSO has been reconnected, reported Husky Energy. Following planned off-station, production is expected to resume in 3Q 2012. An infill production well was drilled at the White Rose field and will be brought online once production resumes. Furthermore, development drilling continued at North Amethyst and a supporting water injection well for the West White Rose pilot project was completed.

Project Details: White Rose

S. America – Brazil

Fluke Engenharia to Fabricate 27 Suction Piles

Jul 25, 2012 – Fluke Engenharia has received a contract from Subsea 7 to fabricate 27 suction piles for use in the Guara-Lula field, which is part of the pre-salt cluster in the Santos basin offshore Brazil. Fluke Engenharia will manufacture the products at its Macae facilities and will deliver them over the course of 2012.

Project Details: Sapinhoa (Guara)

BG Group Signs Contracts for Topside Modules for Lula, Sapinhoa FPSOs

Jul 20, 2012 – BG Group and partners have approved the signature of contracts totaling $4.5 billion for the construction of the first six topside modules and integration packages for eight domestic floating production, storage and offloading units to be used on the Lula (Tupi) and Sapinhoa (Guara) pre-salt projects offshore Brazil.

Project Details: Lula (Tupi)

Asia – Far East

Husky Energy Progresses Liwan Gas Project

Jul 24, 2012 – Husky Energy reported that the Liwan gas project in the South China Sea is advancing as planned with the completion of the shallow water jacket for the project, and the topsides portion of the platform scheduled for completion in the second quarter of 2013. The installation of all nine subsea production trees was completed on the wells at the Liwan 3-1 gas field. Six associated upper completions were installed and flow-tested, with production rates as expected. Front-end engineering and design work for the development of the Liuhua 29-1 gas field is underway. Negotiations are continuing on a sales agreement for gas from the Liuhua 34-2 field. The development is on target to realize first production in late 2013/early 2014.

Project Details: Liwan

Asia – SouthEast

Development Drilling Commences at Madura Project

Jul 24, 2012 – Husky Energy stated that drilling has commenced at a planned six-plus well exploration program in the Madura Strait Block offshore Indonesia. A joint development plan for the MDA and MBH fields has been submitted to the government. The award of development contracts for the BD Field, including a leased FPSO, is expected later this year. The Company and its partners are moving to fully delineate and develop the Madura Strait Block with first gas anticipated in 2014.

Cairn India to Explore Sri Lanka Block in 2013

Jul 23, 2012 – Cairn India Limited reported that the potential commercial interest notification has been submitted for two discoveries, the Dorado and Barracuda wells, as per the terms of the Petroleum Resource Agreement. The operator plans to conduct an exploration program in mid-2013, and tendering for the drilling rig and the associated services is in progress.

Project Details: Dorado

Manora Oil Development to Precede

Jul 23, 2012 – The Manora oil development is scheduled to proceed after its joint venture partners reached a final investment decision. The $246 million project will see a single wellhead platform linked to a floating, storage and offtake unit and the drilling of 15 development wells consisting of 10 production and five injection wells. Tap said that several prospects are being finalized based on recently acquired 3D seismic. The project has also secured a rig to dill up to three wells later this year, and drilling is scheduled to start in the second half of this year. First oil from Manora is being targeted for early 2014 with output expected to peak at about 15,000 barrels per day. The Manora oil development consist of two offshore concessions – G1/48 and G3/48 – sited in the northern Gulf of Thailand. The two concessions could contain up to 31 million barrels of recoverable oil resources.

Project Details: Manora

Mediterranean

Noble Energy Completes Flow Test at Pinnacles

Jul 20, 2012 – Noble Energy Mediterranean has reported that the flow tests of Pinnacles-1 have been completed. Gas composition and gas treatment measures were tested and proved to be effective. The operator will now begin the natural gas flow from the reservoir.

Europe – North Sea

Barryroe is a Huge Find for Providence

Jul 25, 2012 – Providence Resources confirms that estimates of the size of its Barryroe find in the Celtic Sea offshore Ireland have been upgraded. The company reported that its oil in place estimates for Barryroe were now 1,043 million barrels of oil on a P50 basis and up to 1,612 million barrels on a P10 basis. On July 6, oil analysts at Liberum Capital speculated that Barryroe could contain around one billion barrels of oil in place and more than 160 million barrels of recoverable oil. After Providence’s announcement, the London-based investment bank upgraded its estimate of recoverable reserves to 200 million barrels. Providence said that after the successful drilling and testing of the Barryroe 48/24-10z well in March, it has now completed a series of comprehensive post-well studies in order to update the in-place volumetric resource estimate for the Barryroe discovery.

Project Details: Barryroe

Centrica Cooper Well Finds Hydrocarbons

Jul 25, 2012 – Faroe Petroleum reported that its Cooper well in the Norwegian sector of the North Sea has encountered hydrocarbons. The well made a discovery in the Middle Jurassic Garn formation at a depth of 17,500 feet (5,334 meters). After analyzing preliminary results Faroe, and its partners in the well, are now performing a drill stem test (DST) of the Garn formation to evaluate the likely productivity of the reservoir. The Cooper well (in which Faroe has a 30-percent interest) was drilled using the West Alpha (mid-water semisub) rig. It is located in license PL477 on Block 6506/11 on the Halten Terrace.

Project Details: Cooper

Lundin Further Appraises Johan Sverdrup

Jul 25, 2012 – Lundin spud its fifth appraisal well on the Johan Sverdrup discovery in the Norwegian sector of the North Sea. The 16/2-13 well is situated about 1.5 miles (2.4 kilometers) northeast of the discovery well that was found in 2010. The main objective is to determine the top reservoir, reservoir quality and thickness, as well as oil-water contact in this part of the field. The planned total depth of the well is 7,050 feet (2,148 meters) and drilling operations are being conducted by the Transocean Arctic (mid-water semisub). Drilling should take about 45 days.

Project Details: Johan Sverdrup

Statoil Gets Govt Nod to Drill on Valemon

Jul 25, 2012 – Statoil has received consent from the Petroleum Safety Authority Norway to use West Elara (490′ ILC) jackup at the Valemon field. The consent relates to the hook-up of West Elara to the jacket, drilling and installation of 30-inch conductors in the planned first 12 wells and drilling well B-20 for injection of drill cuttings and mud in the Utsira formation. The planned start-up date is July 15, 2012.

Project Details: Valemon

Expro to Provide Well Testing and Data Management Services at Bentley Field

Jul 23, 2012 – Expro has received a contract to provide equipment and services in support of Xcite Energy’s 90-day extended well test in the Bentley field. Expro will provide heavy oil well testing and data management services through drilling and completions company ADTI on the Rowan Norway (400′ ILC) jackup. The Bentley field is estimated to contain 116 million barrels of proven and probable reserves.

Project Details: Bentley

Lundin to Appraise Well in PL 490

Jul 23, 2012 – Lundin has received consent to conduct appraisal drilling on Production License 490. A possible sidetrack (7120/6-3 A) may also be drilled. The Transocean Arctic (mid-water semisub) will conduct drilling operations in a water depth of 1,073 feet (327 meters). Drilling activities are estimated to last a total of 133 days, including the possible sidetrack well.

Project Details: Skalle

Talisman Gets OK to Drill on Varg

Jul 23, 2012 – Talisman Energy has received consent to use Rowan Stavanger (400′ ILC) jackup to drill three sidetrack wells on the Varg field. The consent relates to the drilling of three sidetracks in wells 15/12-A-3 B, 15/12-A-12 E and 15/12-A-1 B on the Varg field. Water depth of the site is 285 feet (87 meters) and drilling should take 62 days.

Project Details: Varg

Petrofac Wins Extended North Sea Contract

Jul 20, 2012 – Petrofac has been awarded a three-year contract to supply engineering and construction services to Apache North Sea. Petrofac will supply onshore engineering as well as onshore and offshore construction to all of Apache North Sea’s assets, including the Beryl Alpha and Bravo platforms in the northern North Sea. The contract represents an extension to, and continuation of, the firm’s current service contract to service Apache’s offshore platforms in the Forties field, 110 miles (177 kilometers) east of Aberdeen.

Providence Approves 2012 Budget for Spanish Point Discovery

Jul 20, 2012 – Providence Resources and partners have approved the 2012 budget for the Spanish Point discovery, as the companies prepare for the 2013 drilling campaign. The gas condensate discovery is located in a water depth of 1,300 feet (396 meters) in the Main Porcupine Basin 125 miles (201 kilometers) off the west coast of Ireland. The 2012 budget includes the provision for well design activities as part of the ramp up to a 2013 appraisal drilling program on Spanish Point. The plan is to spud the initial appraisal well in the third quarter of 2013 subject to rig availability and government approvals while the partners have agreed to transfer the operatorship of FEL 2/04, along with that of other licenses from Providence to Chrysaor.

Project Details: Spanish Point

Australia

Alcatel-Lucent, Technip to Provide Advanced Communications System

Jul 26, 2012 – Alcatel-Lucent together with the Technip Samsung Consortium (TSC) is set to provide an advanced communications system for Shell???s new Prelude FLNG facility. The system will enhance the safety and efficiency of operations and provide entertainment and communications services for crew members on the facility, 124 miles (200 kilometers) off Western Australia. The communications system will include operations, safety, and entertainment systems such as: trunk and marine radio communications; air communications radar recorder (black box); beacons; local and wide area networks; voice over IP; closed circuit TV; public address alarm systems; distress and safety systems; GPS; weather monitoring; and search and rescue transponders.

Project Details: Prelude

Chevron Finds Additional Gas in Gorgon Area

Jul 23, 2012 – Chevron has made a natural gas discovery in the Greater Gorgon area of the Carnarvon Basin, offshore Western Australia. The Pontus-1 exploration well encountered approximately 97 feet (30 meters) of net gas pay. The well is located in the WA-37-L permit area in the Greater Gorgon Area gas fields, approximately 40 miles (65 kilometers) northwest of Barrow Island. The well was drilled in 690 feet (210 meters) of water to a total depth of 16,581 feet (5,054 meters). Chevron Australia is the operator of WA-37-L and holds a 47.3% interest in the permit. Exxon Mobil and Shell Development Australia both hold 25%, Osaka Gas holds 1.25%, Tokyo Gas holds 1% and Chubu Electric Power holds approximately 0.42%.

Project Details: Greater Gorgon

GE Oil & Gas Receives Gorgon Contract

Jul 23, 2012 – GE Oil and Gas has been awarded a $600 million service contract to maintain the compressor trains and associated equipment at Chevron’s Gorgon LNG project off the northwestern coast of Australia. Under the 22-year agreement, GE will provide Chevron with scheduled maintenance, monitoring and diagnostics of the installed equipment and access to local engineers. GE will also manage inventory and supply initial spare components. GE’s first contract performance manager will start working in Perth in October 2012.

Project Details: Greater Gorgon

Houston, TX: Oceaneering Reports Record Second Quarter Results (USA)

Oceaneering International, Inc. today reported record second quarter earnings for the period ended June 30, 2012. On revenue of $673 million, Oceaneering generated net income of $72.6 million, or $0.67 per share. During the corresponding period in 2011, Oceaneering reported revenue of $546 million and net income of $56.7 million, or $0.52 per share.

Subsea World News – Oceaneering Reports Record Second Quarter Results (USA).

Dubai police chief warns of Muslim Brotherhood threat

DUBAI | Thu Jul 26, 2012 5:28am EDT

(Reuters)Dubai’s chief of police has warned of an “international plot” to overthrow the governments of Gulf Arab countries, saying the region needs to be prepared to counter any threat from Islamist dissidents as well as Syria and Iran.

The comments by Dahi Khalfan, one of the most outspoken security officials in the United Arab Emirates, follow the detention in the UAE since April of at least 20 dissidents, according to relatives of the detainees and activists.

“There’s an international plot against Gulf states in particular and Arab countries in general…This is preplanned to take over our fortunes,” Khalfan told reporters at a gathering late on Wednesday marking the Muslim holy month of Ramadan.

“The bigger our sovereign wealth funds and the more money we put in the banks of Western countries, the bigger the plot to take over our countries…The brothers and their governments in Damascus and North Africa have to know that the Gulf is a red line, not only for Iran but also for the Brothers as well.”

Most of the detainees since April are Islamists, targeted by an official clampdown amid concern they may be emboldened by the rise of the Muslim Brotherhood in other Arab countries such as Egypt.

UAE Interior Ministry officials have not been available to comment on the arrests. Last week, UAE officials announced that authorities were investigating a foreign-linked group planning “crimes against the security of the state”.

“I had no idea that there is this large number of Muslim Brotherhood in the Gulf states. We have to be alert and on guard because the wider these groups become, the higher probability there is for trouble,” Khalfan said on Wednesday.

“We are aware that there are groups plotting to overthrow Gulf governments in the long term.”

The rise of the Muslim Brotherhood in the Arab world poses a serious threat to Gulf states, Dubai’s police chief said, as he warned of an “international plot” to overthrow Gulf rulers.

Dahi Khalfan, one of the most outspoken security officials in the United Arab Emirates, also accused Shi’ite power Iran and its ally Syria of interfering in the Gulf states, most of which are ruled by Sunni Muslim monarchies.

At least 20 dissidents, most of them Islamists, have been detained in the UAE since April, according to relatives and activists, amid concern they may be emboldened by the rise of the Muslim Brotherhood in other Arab countries such as Egypt following popular protests.

Gulf Arab states are also wary of Iran which some governments suspect of stirring up unrest in their countries and harboring expansionist ambitions.

“There’s an international plot against Gulf states in particular and Arab countries in general … This is pre-planned to take over our fortunes,” Khalfan told reporters at a gathering late on Wednesday marking the Muslim holy month of Ramadan.

“The bigger our sovereign wealth funds and the more money we put in the banks of Western countries, the bigger the plot to take over our countries.”

Last week, UAE officials announced that authorities were investigating a foreign-linked group planning “crimes against the security of the state”.

“I had no idea that there is this large number of Muslim Brotherhood in the Gulf states. We have to be alert and on guard because the wider these groups become, the higher probability there is for trouble,” Khalfan said.

“We are aware that there are groups plotting to overthrow Gulf governments in the long term.”

“The brothers and their governments in Damascus and North Africa have to know that the Gulf is a red line, not only for Iran but also for the Brothers as well.”

He did not mention other countries, but some Gulf Arab leaders have implicitly accused the United States, a key ally, of supporting Islamists including the Brotherhood as they came to power over the past year in Egypt and Tunisia.

The Gulf states have also been alarmed by pro-democracy protest movements closer to home in Bahrain and Yemen.

Khalfan’s comments have caused controversy in the past. Last month Egypt’s Foreign Ministry summoned the UAE ambassador to clarify statements by Khalfan on Twitter that were an “attack on Egypt”, according to Egyptian state-run media, which did not cite the remarks that caused offence.

The police chief said on Wednesday that his tweets on local and regional politics were personal and did not necessarily reflect the views of the government of Dubai.

(Reporting by Mirna Sleiman; Writing by Andrew Torchia; Editing by Pravin Char)

Aker Bags Subsea Intervention Services Contract Offshore Angola

Aker Solutions’ subsidiary Aker Oilfield Services has received a contract from Total E&P Angola for providing subsea intervention services from the oil services company’s purpose-built intervention vessel, Skandi Aker. The agreement marks a breakthrough for vessel-based intervention services in deep and ultra-deep waters.

The agreement is valid for a period of two (2) years plus options for three further one-year (1+1+1) periods. The firm two-year part of the contract has an aggregated value of approximately USD 250 million. Start-up of operations is planned to take place offshore Angola in Q1 2013.

Skandi Aker is the first well service vessel of its kind capable of performing riser-based subsea well intervention in deep and ultra-deep waters. Traditionally subsea well intervention has been performed from drilling rigs. But the rigs’ high day rates have made such operations very expensive, while rig availability has been limited. The increasing water depths also mean that it has been necessary to develop alternative technology and more cost effective systems to access deepwater wells.

“Skandi Aker is able to perform deepwater well intervention services that oil companies previously needed drilling rigs to conduct. More importantly we do it quicker and more cost effectively, which will increase the frequency of intervention operations and enable our customers’ subsea wells to produce more oil and gas,” says Karl Erik Kjelstad, president of Aker Oilfield Services and head of the Oilfield Services & Marine Assets (OMA) business area in Aker Solutions.

“We are thrilled with this award and to be able to deliver on our vision of developing a cost effective technology for intervention activities at deepwater subsea fields. We are humble about the trust placed in us by Total E&P Angola and their license partners, and look forward to deliver high quality services with the ultimate aim of increasing oil recovery ratios,” adds Kjelstad.

Under the contract Skandi Aker will perform subsea intervention activities related to:

– Well re-entry for testing operations

– Well re-entry for interventions using wireline, coil tubing and well stimulations

– Running/lifting subsea trees with cable or work-over riser

– Suspension or plug and abandonment of wells

Provision of the downhole well services, well test services and ROV services will be provided through separate contracts, outside Aker Solutions’ scope of services for Total E&P Angola.

“In recent years we have made significant investments in developing capabilities for vessel-based subsea intervention activities – both with regards to suitable deepwater technologies and services. We are pleased to see that these investments continue to materialise into contracts,” adds Karl Erik Kjelstad.

Aker Oilfield Services has built up significant resources for subsea intervention and subsea well intervention work. In addition to Skandi Aker, Skandi Santos has since March 2010 been operating very successfully on a 5+ year contract performing subsea intervention work offshore Brazil. Further, In April 2012 the company was awarded a long-term agreement with Statoil to provide a full range of heavy well intervention and light drilling services on the Norwegian continental shelf. The contract period is for eight years, with options for three further two-year periods (2+2+2). Work will be performed from a new build Category B well intervention rig owned and operated by Aker Oilfield Services.

Source

Technip Announces Operating Income Results (France)

Subsea World News – Technip Announces Operating Income Results (France).

USA: KBR 2Q Net Income Up

USA: KBR 2Q Net Income Up LNG World News.

%d bloggers like this: