This shouldn’t surprise you: Oil prices have held steady, while natural gas prices have gone into total freefall.
Natural gas has been “cheap” for sometime, but the warm winter has really been killing it, and so the relative cost of oil has exploded higher.
Of course, the two aren’t perfect substitutes, and as everyone knows there are major infrastructure challenges associated with using more natural gas in the economy (you can ask T. Boone Pickens about that). But at some point, given the need for cheap energy that doesn’t help fund countries that help fund terrorism, you’d think this might mean revert. Maybe.
Read more: BI
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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.”
- Mexico: Cal Dive to Install Subsea Pipeline in Abkatun Offshore Field
- USA: Cal Dive Secures Well Intervention Contract for Uncle John Vessel
- USA: Global Industries Wins Contract for Decommissioning of 7 Production Platforms in GoM
- Cal Dive Awarded Contract in Freeport, Bahamas
- USA: Cal Dive Announces Net Loss of USD 315 Million for Fiscal 2010
- USA: Cal Dive Secures Well Intervention Contract for Uncle John Vessel (mb50.wordpress.com)
- Mexico: Cal Dive to Install Subsea Pipeline in Abkatun Offshore Field (mb50.wordpress.com)
Ensco plc has entered into a contract for ENSCO 8506 semisubmersible drilling rig with Anadarko Petroleum Corporation. The initial contract term is for two and one-half years in the U.S. Gulf of Mexico at a day rate of $530,000, plus cost adjustments. The contract adds more than $480 million to revenue backlog.
Delivery of ENSCO 8506 from Keppel FELS Limited shipyard in Singapore is scheduled for third quarter 2012 followed by contract commencement in fourth quarter 2012 once mobilization, sea trials and acceptance testing have been completed.
Chairman, President and Chief Executive Officer Dan Rabun was pleased with the contract, “We are very pleased that Anadarko has chosen to contract a third ENSCO 8500 Series® rig for its drilling programs. Anadarko was an early advocate of the ENSCO 8500 Series® design and contracted ENSCO 8500 back in 2005.”
ENSCO 8500 commenced operations in 2009, and soon thereafter, drilled Anadarko’s major Lucius Discovery in the U.S. Gulf of Mexico. In October 2011, Anadarko contracted ENSCO 8505 as part of a rig sharing agreement with Apache and Noble Energy. ENSCO 8505 is scheduled to commence operations in the second quarter of this year.
Last of seven
ENSCO 8506 is the final of seven rigs in the ENSCO 8500 Series®. For the first three quarters of 2011, these rigs that have operated in Asia, North America and South America achieved 97% utilization. Ensco is ranked #1 in overall customer satisfaction and #1 in deepwater drilling by EnergyPoint, an independent survey firm.
The proprietary design of the ENSCO 8500 includes a 35,000’ nominal rated drilling depth, 2 million pounds of hoisting capacity, 8,000 tons of variable deck load and an open layout well suited for subsea completion activities. Improved visibility from the open deck configuration also enhances safety.
- USA: Anadarko, Apache and Noble Energy Hire ENSCO 8505 Rig
- UK: Ensco Takes Delivery of ENSCO 8504 Ultra-Deepwater Rig
- UK: Nexen to Use Ensco 120 Jack-Up Rig for Golden Eagle Development
- Singapore: Keppel Announces Delivery of Sixth Ultra-Deepwater Semi to Ensco
- USA: Ensco International Announces 2010 First Quarter Results
- USA: Anadarko, Apache and Noble Energy Hire ENSCO 8505 Rig (mb50.wordpress.com)
- History of ENSCO (mb50.wordpress.com)
- Lucius: Deepwater Gulf of Mexico (mb50.wordpress.com)
- USA: Cobalt Excited About Return to Gulf Drilling (mb50.wordpress.com)
Deep Down, Inc. , an oilfield services company specializing in complex deepwater and ultra-deepwater oil production distribution system support services, today announced it has been awarded multiple contracts for subsea hardware and deployment equipment orders worth in excess of $2.6 million.
Two orders were placed by a major controls OEM and the third order placed by an international installation contractor.
Deep Down, Inc. will be manufacturing Umbilical Termination Assemblies (UTA), Flying Leads, Umbilical Termination Heads (UTH), Rapid Deployment Cartridges, Moray® and Flying Lead Deployment Frames; the majority of the work is scheduled to be completed in the first quarter 2012, with the remainder completed in the beginning of the second quarter 2012. The products and equipment will be used on three international projects in the Far East and Mediterranean and one project in the Gulf of Mexico.
The patent-pending Moray® Termination System contains a light-weight and compact termination head and very flexible steel tube bundle allowing for easy make up of the heads by the ROV on the ocean floor.
Ron Smith, Chief Executive Officer stated, “These awards continue to build upon Deep Down’s expansion into the international oil and gas market. Deep Down continues to gain recognition outside of the Gulf of Mexico as a solution provider. By working with our customers, we are able to provide them with innovative cost effective solutions for their offshore projects.”
- USA: Deep Down Receives Two LSFL Orders
- USA: Deep Down Lands Two Carousel Orders
- USA: Drilling Moratorium Has No Material Negative Impact on Deep Down Inc.
- USA: Deep Down Inc. Begins Construction of New Carousel System
- Australia: Oceaneering Announces BHP Billiton Umbilical and Distribution Equipment Contract
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- UK: Aker Solutions to Supply Subsea Modules for Western Isles Project (mb50.wordpress.com)
- USA: FMC Technologies Provides Subsea Systems for Anadarko’s Lucius Field (mb50.wordpress.com)
- Shell Awards Subsea 7 with Two Gulf of Mexico Contracts (mb50.wordpress.com)
- UK: Key Oil Majors, Plexus Team Up to Develop New Subsea Wellhead (mb50.wordpress.com)
- USA: Shell Sets World Record for Deepest Subsea O&G Well at Perdido Development (mb50.wordpress.com)
- USA: FMC Technologies Wins Subsea Systems Contract from LLOG – Who Dat project (mb50.wordpress.com)
- USA: FMC Technologies Inks Global Alliance Agreement with Anadarko Petroleum (mb50.wordpress.com)