Daily Archives: September 24, 2012

TDW Completes Subsea Pipeline Pressure Isolation in the Gulf of Mexico

TDW Offshore Services (TDW), a leading supplier of pipeline services and equipment, has successfully completed a subsea pipeline pressure isolation operation in the Gulf of Mexico. Carried out at a depth of 370 ft (113 m) against 870 psig, this isolation enabled the safe and effective tie-in of a piggable wye to the Mississippi Canyon Gas Pipeline, a 30-inch natural gas line running between the West Delta 143 platform – a hub facility for deepwater oil and gas production – and the Venice Gas Plant in Louisiana.

The isolation project utilized two remote-controlled 30-inch SmartPlug® dual module pressure isolation tools to isolate 45 miles of pipeline.

“The SmartPlug® isolation tool is certified to ‘Safety Class High’ in accordance with OS-F101 for Submarine Pipeline Systems and is uniquely suited for use in connection with diving operations,” says Bjørn-Olav Gilje, project manager for TDW.

Each tool was composed of two plug modules and two pigging modules. One of the tools provided double block isolation on the high pressure side of the tie-in location. The first module on the second tool provided a hydraulic locked barrier of the high pressure side for the divers installing the wye. The second module on the second tool was used to perform a leak test to verify integrity of the new wye after installation.

Following launch, TDW technicians aboard dive support vessel Norman Commander used the remotely-operated SmartTrack™ tracking and pressure monitoring system to continuously monitor the locations of the SmartPlug® tools as they traveled to their subsea set destinations. The SmartTrack™ system uses two-way, through-wall, electromagnetic communication between a transponder and a receiver to track tool progress. Once the tools were set, the isolation period was approximately two and a half weeks.

“TDW worked with the client and their contractors over several months to ensure that associated risks were evaluated and mitigated,” Gilje adds. “This thorough up-front planning resulted in a successful tie-in operation for our client. Working together achieved a result that we are proud to have been part of.”

Subsea World News – TDW Completes Subsea Pipeline Pressure Isolation in the Gulf of Mexico.

South Korea: Samsung Yard Bags $ 600 Mln UDW Drillship Order

Seadrill has entered into a turnkey contract to build a new ultra-deepwater drillship at the Samsung yard in South Korea. The project value price is estimated to be around US$600 million (including project management, drilling and handling tools, spares, capitalized interest and operations preparations) with tail-heavy payment terms payable upon delivery, which is scheduled within the fourth quarter 2014.

Delivery is scheduled for the fourth quarter 2014. In addition, Seadrill has agreed a fixed price option to build a further drillship at the yard, with delivery in the first quarter 2015. With the current strong demand there is limited availability of rigs in 2014 and Seadrill believes it is likely that the option will be exercised and is currently discussing details of upgrades of that unit.

The drillship will be of the same design as the existing six drillships under construction at Samsung and will have a hook load capability of 1,250 tons and a water depth capacity of up to 12,000 feet targeting operations in areas such as the Gulf of Mexico, Brazil and West and East Africa. Also, these units will be outfitted with seven ram configuration of the blowout preventer (BOP) stack and with storing and handling capacity for a second BOP.

Yard costs are currently at very attractive levels. This together with the delivery time in 2014, the strength of the ultra-deepwater market and Seadrill’s proven track-record of taking delivery on time and on budget makes this into an investment which is likely to deliver an excellent return to our shareholders.

Seadrill’s construction program now totals 19 units, including 7 drillships, 2 harsh environment semi-submersibles, 5 tender rigs and 5 jack ups. In addition the Company has fixed priced options for three ultra-deepwater/harsh environment units.

The initial installments for the new drillship will be funded by liquidity from the recent US$1 billion bond offering.

Chairman of Seadrill Limited John Fredriksen says, “We have a unique environment where both daily rates and contract duration are increasing to new highs, while yard prices remain low due to the overcapacity in the shipyard industry. This presents an excellent investment opportunity under which we can continue to aggressively grow Seadrill. The new ordering has been evaluated up against several M&A and asset proposals but the Board has concluded that organic growth through contracting new buildings at attractive prices is likely to give higher long-term return to shareholders. The deepwater drilling industry is transforming from an exploration to a development industry. Such a transformation will trigger a significant increase in the need for the drilling of production wells in order to connect the fields that have been successfully explored in the recent years.”

Fredriksen continued: “Seadrill is best positioned within the drilling industry to meet this tightness. We have in total nine ultra-deep/ harsh environment units for delivery in 2013 – 2015 plus options for an additional three. Two of these units have already been employed on long-term contracts. We are currently in specific discussions regarding attractive long-term employment opportunities for a majority of the remaining firm units. Clarification around these fixtures should be expected in the months to come. The Board has in recent press releases expressed that they are confident that an attractive financing package can be arranged for the new building program. This situation has further improved in the recent months, driven by a well oversubscribed bank financing, good progress on the export financing side as well as the successful trading of the new US$1 billion five-year unsecured note. With a total order backlog in excess of US$20 billion which is likely to increase further in the months to come the Board is confident that the new ordering can be financed without raising additional equity and will contribute positively to future valuation as well as dividend capacity. Seadrill will continue to monitor opportunities in the new building market including the possibilities to declare the existing three options. The target is to continue to grow Seadrills organization, fleet and earnings potential in an optimal and dynamic way. The Board is increasingly excited about the strength of the market and the way Seadrill is exposed to this operationally and financially.”

Shipbuilding Tribune – South Korea: Samsung Yard Bags $ 600 Mln UDW Drillship Order.

%d bloggers like this: