Category Archives: GoM

Foster Wheeler Enters U.S. Gulf of Mexico Junction Platform Project

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Foster Wheeler AG, has been awarded a contract by Discovery Gas Transmission, LLC to provide design, engineering and technical services for a junction platform, facilities and associated pipelines within the Discovery System at South Timbalier 283, in the Gulf of Mexico.

The Foster Wheeler contract value, which was not disclosed, will be included in the company’s fourth-quarter 2011 bookings.

The platform, located in approximately 350 feet of water, will be a four-pile structure with a two-level deck. It will be designed as an unmanned structure with a control system designed to shut down the facility in the event of an upset condition. The new infrastructure will enable the existing Discovery pipeline to operate at a higher pressure, both before and after the connection of the new Keathley Canyon pipeline.

“This project gives us an opportunity to fully showcase our wide range of capabilities and will build on our track record for delivering complex offshore projects in the Gulf of Mexico,” said Clive Vaughan, Chief Executive Officer, Foster Wheeler Upstream.

Williams Partners L.P. owns 60 percent of the Discovery system and operates it. DCP Midstream Partners, LP owns 40 percent of the system.

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WWCS Bags Decom Gig in U.S. Gulf of Mexico

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Wright’s Well Control Services (WWCS) has been awarded a contract from an operator in the Gulf of Mexico for the surface plug & abandonment of sixteen wells. Work on this project will commence in the first quarter of 2012 and is expected to be completed by the end of June 2012.

WWCS will use its proprietary custom-engineered equipment for the project including wireline units, pumps, fluid manifolds, cement blenders, gas separators and tanks. These small-footprint spreads allow for conducting rigless plug & abandonments from a vessel of opportunity. WWCS will also provide planning, permitting and project management services.

“We are seeing an uptick in decommissioning work in the Gulf. The awarding of this contract further demonstrates WWCS’ capability to successfully execute multi-well packages for our clients. Our unique small-footprint equipment and experienced crews help customers stay on budget and schedule,” says David Wright, WWCS president.

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‘The new normal’

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Daily Advertiser

Oil and gas exploration and production in the Gulf of Mexico will some day return to pre-BP spill levels, the president of Chevron North America Exploration and Production Company, Gary Luquette said Thursday.

But the rigorous permitting, safety and verification requirements imposed after the April 2010 BP disaster are here to stay, Gary Luquette said during an interview with The Daily Advertiser before the Greater Lafayette Chamber of Commerce annual banquet, where he was keynote speaker.

“It’s a new normal,” Luquette said.

The industry hasn’t found its stride since the Deepwater Horizon platform operated by BP off the coast of Louisiana exploded and sunk, creating the largest oil spill in U.S. history.

That disaster, which killed 11 workers, led the federal government to impose a six-month moratorium on deepwater drilling that was followed by more stringent permitting and safety regulations.

“I think activity levels can and will return to pre-Macondo (spill) levels,” he said. “The effort and rigor in getting permits approved won’t return.”

Luquette said that’s a good thing for Louisiana and the industry. The BP disaster tainted the entire industry.

Tighter permitting, regulations and oversight will help the industry rebuild public trust, he said.

The “new normal” may be too costly for some of the small independent companies to survive, Luquette said.

“In the end,” he said, “the standards are going up. It’s your responsibility to enact them.”

The Gulf of Mexico is still a major source of oil and natural gas and Chevron maintains a presence there, in deepwater and shallow water, said Luquette, a 1978 civil engineering graduate of UL Lafayette.

More than half of the company’s 2012 budget is allocated to Gulf of Mexico activity. Today, Chevron has 10 rigs operating in shallow water, he said.

Lafayette plays an important role in the industry with numerous supply and service companies operating here.

Chevron alone has 300 workers in its Lafayette office and another 300 or so working offshore out of the Lafayette office, Luquette said.

President Obama said last week in his State of the Union address that he wants to end “subsidies” to the oil and gas industry which makes billions of dollars in profits. Luquette said the energy industry creates jobs and creates wealth for the federal government.

In 2011, the oil and gas industry paid $86 million a day to the federal government in royalties, rents and tax revenue, he said. The industry also employs more than nine million either directly or indirectly.

The industry doesn’t need bailouts and such, just a level-playing field, the same so-called subsidies and breaks the federal government provides other U.S. industries and those from foreign nations, Luquette said.

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McDermott signs agreement for spool base services in Gulf of Mexico

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HOUSTON – McDermott International, Inc. says it has signed a 10-year frame agreement with Helix Subsea Construction, Inc. for spool base services in the Gulf of Mexico.

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“This agreement allows McDermott, when contracting with Helix, to offer full-service, shore-based pipeline stalking and spooling services from Helix’s premier 120-acre Gulf of Mexico spool base at Ingleside, Texas, to pursue deepwater and ultra-deepwater installation projects,” explained Stephen M. Johnson, chairman of the board, president and CEO, McDermott.

“By combining Helix’s established spool base services with McDermott’s state-of-the-art welding technology to support our newest subsea construction vessels and expanding subsea engineering resources, we can further offer full-service engineering, procurement, construction and installation for deepwater and ultra-deepwater subsea projects for Gulf of Mexico and Atlantic customers.”

Through the cooperation agreement, McDermott would fabricate the required mile-long stalks at Ingleside, and employ its own in-house automatic welding equipment, technology and technicians. The company says that these facilities and personnel will enable it to meet the stringent welding criteria required for deepwater subsea pipelines. The spool base is also designed for fabrication of pipeline end terminations, pipeline end manifolds, subsea manifolds and jumpers.

McDermott’s subsea construction vessels North Ocean 102 (“NO102”) and new-build lay vessel North Ocean 105 (“LV105”), due to be completed later this summer, both have reel-lay capabilities. LV105 is designed to lay both flexible and rigid pipe up to 16-in. diameter, with tension and hang-off clamp capacities of 440 tons and 550 tons, respectively. NO102 offers flexible and umbilical installation and is equipped with a 330-ton low squeeze pressure single tensioner and high capacity carousel.

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McDermott says it will employ strict welding procedures, advanced welding technology and technical experts to meet or exceed client welding criteria for deepwater subsea pipelines, from the Ingleside-based spool facility. Photo courtesy of Helix Subsea Construction, Inc.

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USA: Cal Dive Wins USD 25 Million Offshore Decommissioning Contract

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Cal Dive International, Inc. announced today that it has been awarded a Field Abandonment and Decommissioning Contract from an operator in the Gulf of Mexico which includes the abandonment of sixteen wells, seven pipelines, and the removal of eight structures.

The contract is expected to generate total revenue of approximately $25 million and will utilize two of the Company’s key assets. Work on this project will commence in the first quarter of 2012 and is expected to be completed by the end of June 2012.

Quinn Hébert, President and Chief Executive Officer of Cal Dive, stated, “We are pleased to announce the award of our first decommissioning program in the Gulf of Mexico for 2012. We expect 2012 to be an active year for salvage work in the Gulf of Mexico as regulators encourage producers to remove idle iron. This project highlights Cal Dive’s ability to provide full service solutions to our clients.”

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