Category Archives: East Asia
East Asia or Eastern Asia (the latter form preferred by the United Nations) is a subregion of Asia that can be defined in either geographical or cultural terms. Geographically and geo-politically, it covers about 12,000,000 km2 (4,600,000 sq mi), or about 28 percent of the Asian continent, about 15 percent bigger than the area of Europe.
The failed operation which caught to thousands of Africans in Mexico
Some Africans before a module of attention to migrants, in the city of Tijuana in the north-western border of Mexico with the United States. Credit: Guillermo Arias/Enelcamino
Translated
TIJUANA, Mexico, 27 Sep 2016 (IPS) – Saturday afternoon. From the city of Tijuana, Sergio Tamai, an activist for the rights of migrants, summarizes the new crisis in that part of the border between Mexico and the United States.
“You are creating a bronconón,” says with an emphasis – and idiom – in the northern Mexicans. “The government is already exceeded by more than tried to hide it could no longer and the anger is going to explode”.
Tamai, founder of the Organization Angels without Borders, speaks of an unpublished phenomenon that surprises to this city of the north-western end of Mexico, the most populated area of the state of Baja California and created by migrants: the arrival of thousands of Africans and Haitians seeking asylum in the United States.
It is not known how many. The City Council recognizes to 350, which are in their hostels, but civil organizations say they can be up to 7,000.
Many are in Tijuana since May 2016, but others appeared in the first two weeks of September. The flow has not been stopped and it is very possible that its origin is older than the of these estimates.
But only now is visible for three reasons: the number of migrants is increasing; the first who arrived exhausted their money and took to the streets to do this. Before lived in hotels.
And the third reason is that some local media began to publish on the phenomenon, after which the Government of the United States denounced a possible sale of tickets by the National Institute of Migration (INM) to request asylum humanitarian.
Beyond the numbers there are some elements that make unpublished the phenomenon, even in this city that immigration has seen almost everything.
The newcomers, especially those who come from Africa, are part of a suspiciously ordered and silent flow, which even has the backing of the INM, denounce pro-migrant activists.
Many have resources that have enabled them to survive in Mexico for months and not only that: it has clear the way to try to seek asylum in the United States, which implies knowledge of international laws or, at least, of the bureaucratic procedures of the U.S. authorities.
It is not common in the flow of human beings that crosses by Mexico. Go, even in the centennial tradition migrant of this country toward the north.
That is why it is unpublished the phenomenon. And some as the priest Alejandro Solalinde, founder of the Hostel Brothers in the way, have clear the picture:
The migratory crisis that is brewing in Tijuana, she says, is part of a strategy of transnational mafias of trafficking in persons, capable of moving through planet not only Africans but to migrants of any other nationality.
Groups that, according to international protocols as Palermo (on organized crime) can only exist with the support, active or by omission, of the authorities.
But now something ruled that the door to this migration of free passage, considered of privilege by the high cost of travel ($20,000 on average), has been closed.
And the consequences are seen in the streets of Tijuana.
Historically by the southern border of Mexico have crossed citizens of half the world. In Tapachula, the largest city in the area, there are few who speak of Indians, Pakistanis, Iraqis, Chinese and of course of Central Americans, Cubans and Haitians who at some time in the past decades walked through its streets or took refuge in a hotel.
Few were references to Africans. Until a few years ago, that his presence began to be increasingly evident.
Appeared after the wave of Cubans who have fled their country before the thawing of relations between Havana and Washington, that put at risk the migrant privileges that the Islanders remained for decades.
Many of these Africans also came directly to the offices of the INM to be delivered and ask for a profession of output, which serves as a safe conduct for a month to avoid being arrested.
The document sets out its holder is in the process of voluntary leave the country and by the same, while keep their validity, cannot be deported.
A process that has existed for decades but which often did not apply to irregular migrants newcomers to Mexico. Until a few years ago the victims were generally foreigners with several years of lie in the country who are expired their temporary stay permit, known as FM3.
The office of departure obliges leave Mexico but does not prevent their re-entry, even hours after doing so. Many use it to regularize their immigration status.
The decision to apply this measure is arbitrary, certainly, because it is common in populations as Argentineans, Spanish or Chileans (almost never Americans, by the way), but there were a few cases in which Central Americans receive this benefit.
Now they have the Africans, said Solalinde. The document has allowed them to reach Tijuana where in recent months became a time bomb.
“already exceeded to the authorities. We are proposing to make a camp to concentrate and that are not in the streets but they said no, because they were going to reach thousands in little time,” explains Tamai.
“The only thing they did was to take them out of the Board and the places where they are concentrated and now walk irrigated in the streets. Up to beaches of Tijuana arrived already”, details.
This area is located on the western shore of the city, in front of the Pacific Ocean.
The presence of thousands of Africans and Haitians in Tijuana is not free, insists Solalinde.
The trip starts in countries such as Nigeria, Ghana, Mali, Democratic Republic of the Congo, Senegal, Somalia, Eritrea or Burkina Faso, continues by Brazil, Ecuador, Colombia and Central America and Mexico.
It is a long journey that almost nobody does alone, and that is usually handled by transnational bands of human trafficking who had guaranteed the step toward the United States thanks to the corruption of immigration service officials of that country.
But this had since changed, said Solalinde. “four to five months ago had a regular traffic operated by the INM. Arrived regular flights for example of the southern border to Toluca with oriental, or Hindus and carried directly to Tijuana,” explains.
In little time, almost at the exit of the airport migrants arriving in the shacks migratory and crossed without problem, or used other irregular channels and more expensive.
“Had narco tunnels where people also passed, was very hard but they crossed. Now they are closing. Also spent in auto with micas false and that was there in La Garita agreed, but now no longer”.
It is not known why the clandestine door to the United States was closed, but the reality is that they were stuck in the city. “Paid and someone was no longer able to respond in the last milestone as they say, but continue to arrive and are still represando”, said the priest.
Never missing the profiteers. Every day the INM gives 50 appointments to meet with a U.S. consul and raise the application for asylum.
That does not mean they will do so and in fact the majority are rejected, but remain in Tijuana for two reasons: they do not want to return to their countries, and at the same time the Mexican government cannot expel them because in many cases do not have deportation agreements with those nations.
However, a few weeks ago we learned that passes, supposedly free, in reality were sold in hundreds of dollars. Many who already have a while in the city could not buy them but the newcomers. “One day arrived as a thousand to buy them, was when the United States suspended the process”, account Tamai.
Stuck without a chance of moving, began to wander in the streets. A few hundred were to Mexicali to attempt the crossing by there, but neither did so.
“by itself La Garita, there is more girl, the saturated then and they closed the door,” recalls the activist.
Meanwhile, the social problem in the border is exacerbated each week. Municipal resources to serve the population in situation of street was already sold out, says Tamai, and the government of Baja California does not want to release money to avoid a greater concentration of migrants.
The only way out is for the federal government to unlock the resources for the care of migrants, some 300 million pesos (15.7 million), and sends them to the border to solve the problem.
Going for long, said Tamai. But it will not lay to wait. “We are going to make noise, to protest to that released the money. This is a humanitarian crisis,” says.
This article was originally published by the way, a project of journalists on foot . IPS-Inter Press Service has a special agreement with journalists on foot for the dissemination of its materials.
Reviewed by Star Gutierrez
TPP :: The treaty from hell
Obama’s Secret Treaty Would Be The Most Important Step Toward A One World Economic System
By Michael Snyder, on November 12th, 2014
Barack Obama is secretly negotiating the largest international trade agreement in history, and the mainstream media in the United States is almost completely ignoring it. If this treaty is adopted, it will be the most important step toward a one world economic system that we have ever seen. The name of this treaty is “the Trans-Pacific Partnership”, and the text of the treaty is so closely guarded that not even members of Congress know what is in it. Right now, there are 12 countries that are part of the negotiations: the United States, Canada, Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. These nations have a combined population of 792 million people and account for an astounding 40 percent of the global economy. And it is hoped that the EU, China and India will eventually join as well. This is potentially the most dangerous economic treaty of our lifetimes, and yet there is very little political debate about it in this country.
Even though Congress is not being allowed to see what is in the treaty, Barack Obama wants Congress to give him fast track negotiating authority. What that means is that Congress would essentially trust Obama to negotiate a good treaty for us. Congress could vote the treaty up or down, but would not be able to amend or filibuster it.
Of course now the Republicans control both houses of Congress. If they are foolish enough to blindly give Barack Obama so much power, they should all immediately resign.
And it is critical that people understand that this is not just an economic treaty. It is basically a gigantic end run around Congress. Thanks to leaks, we have learned that so many of the things that Obama has deeply wanted for years are in this treaty. If adopted, this treaty will fundamentally change our laws regarding Internet freedom, healthcare, copyright and patent protection, food safety, environmental standards, civil liberties and so much more. This treaty includes many of the rules that alarmed Internet activists so much when SOPA was being debated, it would essentially ban all “Buy American” laws, it would give Wall Street banks much more freedom to trade risky derivatives and it would force even more domestic manufacturing offshore.
In other words, it is the treaty from hell.
In addition to imposing Obama’s vision for the world on 40 percent of the global population, it is also being described as a “Christmas wish-list for major corporations”. Of the 29 chapters in the treaty, only five of them actually deal with economic issues. The rest of the treaty deals with a whole host of other issues of great importance to the global elite.
The following list of issues addressed by this treaty is from a Malaysian news source…
• domestic court decisions and international legal standards (e.g., overriding domestic laws on both trade and nontrade matters, foreign investors’ right to sue governments in international tribunals that would overrule the national sovereignty)
• environmental regulations (e.g., nuclear energy, pollution, sustainability)
• financial deregulation (e.g., more power and privileges to the bankers and financiers)
• food safety (e.g., lowering food self-sufficiency, prohibition of mandatory labeling of genetically modified products, or bovine spongiform encephalopathy (BSE) or mad cow disease)
• Government procurement (e.g., no more buy locally produced/grown)
• Internet freedom (e.g., monitoring and policing user activity)
• labour (e.g., welfare regulation, workplace safety, relocating domestic jobs abroad)
• patent protection, copyrights (e.g., decrease access to affordable medicine)
• public access to essential services may be restricted due to investment rules (e.g., water, electricity, and gas)
Why can’t we get this type of reporting in the United States?
And if this treaty is ultimately approved by Congress, we will essentially be stuck with it forever.
This treaty is written in such a way that the United States will be permanently bound by all of the provisions and will never be able to alter them unless all of the other countries agree.
Are you starting to understand why this treaty is so dangerous?
This treaty is the key to Obama’s “legacy”. He wants to impose his will upon 40 percent of the global population in a way that will never be able to be overturned.
Of course Obama is touting this treaty as the path to economic recovery. He promises that it will greatly increase global trade, decrease tariffs and create more jobs for American workers.
But instead, it would be a major step toward destroying what is left of the U.S. economy.
Over the past several decades, every time a major trade agreement has been signed we have seen even more good jobs leave the United States.
And it doesn’t take a genius to figure out why this is happening. If corporations can move jobs to the other side of the planet to nations where it is legal to pay slave labor wages, they will make larger profits.
Just think about it. If you were running a corporation and you had the choice of paying workers ten dollars an hour or one dollar an hour, which would you choose?
Plus there are so many other costs, taxes and paperwork hassles when you deal with American workers. For example, big corporations will not have to provide Obamacare for their foreign workers. That alone will represent a huge savings.
Any basic course in economics will teach you that labor flows from markets where labor costs are high to markets where labor costs are lower. And at this point it costs less to make almost everything overseas. As a result, we have already lost millions upon millions of good jobs, and countless small and mid-size U.S. companies have been forced to shut down because they cannot compete with foreign manufacturers.
Later this month, consumers will flock to retail stores for “Black Friday” deals. But if you look carefully at those products, you will find that almost all of them are made overseas. We buy far, far more from the rest of the world than they buy from us, and that is a recipe for national economic suicide.
We consume far more wealth that we produce, and anyone with half a brain can see that is not sustainable in the long run. The only way that we have been able to maintain our high standard of living is by going into insane amounts of debt. We are currently living in the largest debt bubble in the history of the planet, and at some point the party is going to end.
Please share this article with as many people as you can. We need to inform people about what Obama is trying to do.
If Obama is successful in ramming this secret treaty through, it is going to do incalculable damage to what is left of the once great U.S. economy.
Russia And China Finally Sign Historic $400 Billion “Holy Grail” Gas Deal
There was some trepidation yesterday when after the first day of Putin’s visit to China the two countries did not announce the completion of the long-awaited “holy grail” gas dead, and fears that it may get scuttled over price negotiations. It wasn’t: moments ago Russia’s Gazprom and China’s CNPC announced, that after a decade of negotiations, the two nations signed a 30 year gas contract amounting to around $400 billion. And with the west doing all it can to alienate Russia and to force it into China’s embrace, this is merely the beginning of what will be a far closer commercial (and political) relationship between China and Russia.
So far there have been no public pricing details on the deal which accrording to Gazprom CEO Aleksey Miller is a “commercial secret”, and which is believed to involve Russia supplying 38 billion cubic metres of gas per year to China via a new eastern pipeline linking the countries.
According to Itar-Tass, the compromise between Russian gas export monopoly Gazprom and Chinese National Petroleum Corporation (CNPC) on Russian gas price is estimated at $75 billion, citing the Deputy Head of the National Energy Security Fund Alexei Grivach. The differences on the price for 38 and 60 billion cubic meters supplies a year were $1.5 billion and $2.5 billion, he added, so the subject of the negotiations is quite a significant one.
Gazprom expected a base price of $400 for 1,000 cubic meters, an expert of the Eurasian Development Research Center of the Chinese State Council said in April, whereas the CNPC’s proposal was $350-360 for 1,000 cubic meters.
A memorandum of understanding was signed in the presence of Russian President Vladimir Putin and President of China Xi Jinping on the second day of Putin’s two-day state visit to Shanghai. The price China will pay for Russian gas remains a “commercial secret” according to Gazprom CEO Aleksey Miller. Gas will be delivered to China’s via the eastern ‘Power of Siberia’ pipeline.
RT producers were informed of the landmark energy deal prior to its signing after a conversation with Miller.
Under the long-term deal, Gazprom will begin providing China’s growing economy with 38 billion cubic meters of natural gas per year for the next 30 years, beginning in 2018. The details of the deal were discussed for more than 10 years, with Moscow and Beijing negotiating over gas prices and the pipeline route, as well as possible Chinese stakes in Russian projects.
Just ahead of Putin’s visit to Shanghai, Russian Prime Minister Dmitry Medvedev gave reassurance that the agreed price would be fair.
“One side always wants to sell for a higher price, while the other wants to buy for a lower price,” Medvedev said. “I believe that in the long run, the price will be fair and totally comparable to the price of European supplies.”
A major breakthrough in negotiations came on Sunday as Gazprom chief Aleksey Miller sat down with his CNPC counterpart, Zhou Jiping, in Beijing to discuss final details, including price formulas.
Although Europe is still Russia’s largest energy market – buying more than 160 billion cubic meters of Russian natural gas in 2013 – Moscow will use every opportunity to diversify gas deliveries and boost its presence in Asian markets.
“I wouldn’t look for politics behind this, but I have no doubt that supplying energy to the Asia Pacific Region holds out a great promise in the future,” Medvedev said.
In October 2009, Gazprom and CNPC inked a framework agreement for the Altai project which envisions building a pipeline to supply natural gas from fields in Siberia via the western part of the Russia-China border.
In March 2013, Gazprom and CNPC signed a memorandum of understanding on Russian gas supplies to China along the so-called eastern ‘Power of Siberia’ route. When both pipelines are activated, Russia can supply Asia with 68 billion cubic meters of gas annually.
Last year, China consumed about 170 billion cubic meters of natural gas and is expected to consume 420 billion cubic meters per year by 2020.
Regardless of what the final price ended up being, and whether or not China got the upper hand in the negotiations, the final outcome is there and it is real: as a result of his disastrous foreign policy in the past two months, Barack Obama finally pushed Russia into China’s hands, culminating with a deal that was ten years in the making and was never certain, until the Ukraine crisis.
And yes, this was all predictable from day one. Here is what we said precisely two months ago:
If it was the intent of the West to bring Russia and China together – one a natural resource (if “somewhat” corrupt) superpower and the other a fixed capital / labor output (if “somewhat” capital misallocating and credit bubbleicious) powerhouse – in the process marginalizing the dollar and encouraging Ruble and Renminbi bilateral trade, then things are surely “going according to plan.”
For now there have been no major developments as a result of the shift in the geopolitical axis that has seen global US influence, away from the Group of 7 (most insolvent nations) of course, decline precipitously in the aftermath of the bungled Syrian intervention attempt and the bloodless Russian annexation of Crimea, but that will soon change. Because while the west is focused on day to day developments in Ukraine, and how to halt Russian expansion through appeasement (hardly a winning tactic as events in the 1930s demonstrated), Russia is once again thinking 3 steps ahead… and quite a few steps east.
While Europe is furiously scrambling to find alternative sources of energy should Gazprom pull the plug on natgas exports to Germany and Europe (the imminent surge in Ukraine gas prices by 40% is probably the best indication of what the outcome would be), Russia is preparing the announcement of the “Holy Grail” energy deal with none other than China, a move which would send geopolitical shockwaves around the world and bind the two nations in a commodity-backed axis. One which, as some especially on these pages, have suggested would lay the groundwork for a new joint, commodity-backed reserve currency that bypasses the dollar, something which Russia implied moments ago when its finance minister Siluanov said that Russia may refrain from foreign borrowing this year. Translated: bypass western purchases of Russian debt, funded by Chinese purchases of US Treasurys, and go straight to the source.
Here is what will likely happen next, as explained by Reuters:
Igor Sechin gathered media in Tokyo the next day to warn Western governments that more sanctions over Moscow’s seizure of the Black Sea peninsula from Ukraine would be counter-productive.
The underlying message from the head of Russia’s biggest oil company, Rosneft, was clear: If Europe and the United States isolate Russia, Moscow will look East for new business, energy deals, military contracts and political alliances.
The Holy Grail for Moscow is a natural gas supply deal with China that is apparently now close after years of negotiations. If it can be signed when Putin visits China in May, he will be able to hold it up to show that global power has shifted eastwards and he does not need the West.
* * *
To summarize: while the biggest geopolitical tectonic shift since the cold war accelerates with the inevitable firming of the “Asian axis”, the west monetizes its debt, revels in the paper wealth created from an all time high manipulated stock market while at the same time trying to explain why 6.5% unemployment is really indicative of a weak economy, blames the weather for every disappointing economic data point, and every single person is transfixed with finding a missing airplane.
To conclude with the traditional geopolitical balance of power summary: Putin wins (again), Obama loses (again), and the monument to the dollar’s status as world’s reserve currency gets yet another tarnishing blow.
Wisdom From Steve Jobs On The Coming System Reset
April 30, 2014
Santiago, Chile
by Simon Black via Sovereign Man blog,
Steve Jobs used to tell a very inspiring story about an article he read in Scientific American when he was a boy:
He said that the article measured the ‘efficiency of locomotion’ of various species– essentially how many calories different animals spend getting from Point A to Point B.
The most efficient of all? Not human beings. Not by a long shot. It was the condor. The condor expended the least amount of energy per meter or kilometer traveled. Human beings were pretty far down the list.
But as Jobs recounts, the authors had the foresight to also test the efficiency of a human being on a bicycle. And this absolutely blew all the other species away.
Jobs later said that this was incredibly influential on his thinking because he realized that human beings were fundamentally tool creators. We take our situation, however grim or rudimentary, and we make it better.
There’s undoubtedly a lot of bad news in the world these days. Some people realize it. Others refuse to believe it and stick their heads in the sand.
Our century-old monetary system is unraveling before our very eyes.
This absurd structure in which we award a tiny central banking elite with the dictatorial power to control the money supply in their sole discretion is now drowning the world in paper currency.
ALL financial markets are manipulated by central banks, predominantly the Federal Reserve. One woman– Janet Yellen– has the power to affect the prices of nearly everything on the planet, from the wholesale price of coffee in Colombia to the cost of a luxury flat in Hong Kong.
Moreover, politicians in some of the most ‘advanced’ economies in the world (Japan, the US, France, the UK, etc.) have accumulated so much debt that they have to borrow money just to pay interest on the money they have already borrowed.
They have indebted generations who will not even be born for decades.
They wage endless, costly wars. They spy on their citizens. They tell people what they can and cannot put in their bodies. They confiscate private property and wages at the point of a gun.
They abuse the population with legions of heavily armed government agents. They conjure so many codes, rules, regulations, laws, and executive orders that it becomes nearly impossible for an individual to exist without being guilty of some innocuous, victimless crime.
And they arrogantly masquerade the entire ruse as a free society.
This system is on the way out. It will reset.
Like feudalism before, our system will go the way of the historical dust bin. And future historians will look back (just as we view feudalism) and say “why did they put up with that nonsense…?
This reset is nothing to fear. Human beings are incredible creatures who have a long-term track record of growth. We rise. We progress.
South Korea: Next-Generation Drillship Design Developed
With the heightened expectations of stakeholders in the aftermath of the Deepwater Horizon incident, Hyundai Heavy Industries (HHI) has listened to its drilling operator clients and designed a new generation of drillship. The new 80k class, heavy duty, wide beam drillship design, HD12000, can drill up to depths of 12,000 feet.
It has greater versatility, strength and more available deck space than its predecessors and has been developed drawing on previous experience of drillships. The HD12000 has an increased beam, which allows for larger and more variable load capacity (up to 24,000 metric tonnes) and reserve buoyancy for heavy duty – with compartment arrangement improvements – as well as being able to accommodate a cylinder rig concept that could be used for bigger derrick load requirements.
The JDP put the wide beam drillship design through design review, ship motion analysis, fatigue and FE analysis. Throughout, and on a global basis, Lloyd’s Register experts in hull structures, marine, mechanical, electrical and drilling systems worked in co-operation with HHI’s lead engineers to review and give feedback on the design development.
At the closing meeting at HHI’s Ulsan shipyard, Gyung-Jin Ha, Executive Vice President, Hyundai Heavy Industries, commented: “HHI and Lloyd’s Register have strong advantages in their own specialised fields, and it is therefore desirable to share experiences with each other and have cooperation between the two companies. HHI will never stop innovating to meet new market demands.”
Lloyd’s Register Drilling Integrity Services specialists in Moduspec were able to provide 25 years of valuable ‘people, systems and equipment’ insight and perspective regarding the drilling systems arrangements, when considering the operational integrity of the proposed design. At 223 metres long, 40 metres wide and 18.5 metres deep, the HD12000 drillship can probe a depth of 40,000 feet below the rotary table and is designed to accommodate the increasing complexity, pressures and sizes of drilling equipment and their handling needs. In addition, the arrangement of mud pumps and riser hold storage inside the hull envelope provides for a large free deck area for tube storage and other equipment, as well as greater flexibility and versatility of operations.
It has fully dynamic, positioning-compliant, station-keeping capabilities, with sufficient power to allow it to maintain position in emergency situations. Efficient The HD12000’s innovative hull form design is based on HHI’s longstanding and accumulated technology on merchant vessels. It enables a high transit speed of 11.5 knots (reduced form resistance with integrated thruster pod to hull) with a reported 40% less fuel consumption, enhanced sea-keeping performance (reduced roll angle by 20%), reduced interaction and thruster efficiency improvement and enhanced DP capability (reportedly 20% less fuel consumption).
A patented thruster canister design allows for in-site inspection and maintenance of the thruster without the need for docking, with reduced non-productive time.
Alan Williams, Lloyd’s Register’s Korea Marine Operations Manager, said: “Lloyd’s Register has been able to clearly demonstrate to a significant customer for drillship construction how it can support them, drawing upon the pool of expertise from across the organisation for that segment. Korea represents the technological coalface for drillship construction, gaining momentum for innovation, and we will continue to play our part. Lloyd’s Register is positioned to fully support the drilling operators and building yards through integrated marine and drilling system specialist teams, working closely with these clients to develop and offer solutions.”
The latest revision of LR’s rules for Mobile Offshore Units utilises the specialist drilling integrity capabilities of Moduspec and WEST, and will incorporate new classification notations for mobile offshore drilling units. These will be released in February.
Shipbuilding Tribune – South Korea: Next-Generation Drillship Design Developed.
- South Korea: STX O&S Wins Mega Project Award (worldmaritimenews.com)
- Pacific Drilling: A Growing, Well-Capitalized Offshore Drilling Company (seekingalpha.com)
Shell Hires Transocean’s 4 Newbuild UDW Drillships (South Korea)
Transocean Ltd. announced that it has been awarded 10-year contracts for four newbuild dynamically positioned ultra-deepwater drillships by Royal Dutch Shell (Shell).
Shipyard delivery for the first drillship is scheduled for mid-2015. The remaining three drillships are expected to be delivered from the shipyard at approximately six-month intervals thereafter. After customer acceptance, the contracts are expected to commence in 2015 and 2016, contributing an estimated revenue backlog of $7.6 billion, excluding mobilization. The aggregate capital investment for the four newbuild rigs is an estimated $3.0 billion, excluding capitalized interest.
All four drillships have advanced capabilities: each is designed to operate in water depths of up to 12,000 feet and drill wells to 40,000 feet. Featuring state-of-the-art equipment, including Transocean’s patented dual-activity drilling technology, the newbuild drillships will possess industry-leading hoisting capacity. The drillships will also have a variable deckload capacity of 23,000 metric tons and feature enhanced well completion capabilities. In addition, each newbuild rig will be outfitted with two 15,000 psi blowout preventers (BOPs), which are expected to reduce customer non-productive time between wells. The four newbuild drillships will be able to accommodate a future upgrade to a 20,000 psi BOP, when it becomes available. The rigs will also feature diesel engines configured to comply with anticipated Tier III International Maritime Organization (IMO) emissions standards.
“These contracts add 40 years of rig work to our revenue backlog, expand and upgrade our ultra-deepwater fleet, improve our fleet mix and provide an opportunity to expand our relationship with an important customer with which we have 40 years of experience in advancing the state of the art in offshore drilling technology,” said Steven L. Newman, President and Chief Executive Officer of Transocean Ltd. “We look forward to providing Shell with incremental value through the addition of these seventh-generation, ultra-deepwater drillships.”
Peter Sharpe, Shell’s Executive Vice President, Wells, said, “Shell continues to develop its deepwater operations and modernize its contracted rig fleet at fair market rates. These state-of-the-art deepwater rigs, on which we are collaborating with Transocean to design, will comply with the highest industry standards for safety, operations and environmental protection for drilling deepwater wells.”
The newbuild rigs will be constructed at the Daewoo Shipbuilding and Marine Engineering Co., Ltd. facility at Okpo, South Korea, where Transocean’s five Enhanced Enterprise-Class rigs were built and where the company currently has two other ultra-deepwater drillships under construction. Construction on the first drillship is expected to commence during the fourth quarter of 2013.
Shell Hires Transocean’s 4 Newbuild UDW Drillships (South Korea)| Offshore Energy Today.
- Shell Gives Transocean a Huge Shot in the Arm with 40 Years of Drilling Contracts (gcaptain.com)
- Atwood Oceanics Orders Third Ultra-Deepwater Drillship (gcaptain.com)
- Time to Buy This Offshore Driller? (fool.com)