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USA: Caterpillar to Produce More Gas Fueled Equipment and Engines

Caterpillar Inc., the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives, announced at the inaugural Natural Gas for High Horsepower Applications (HHP) Summit on Sept. 27 its intentions to go ‘all-in’ on natural gas and produce even more natural gas-fueled equipment and engines for a variety of applications.

Joel Feucht, Caterpillar’s director of gas engine strategy for the energy and power systems businesses, made the announcement during his keynote address at HHP Summit 2012, a first-ofits-kind event that examined the economic and environmental benefits of using the clean-burning, domestically abundant natural gas in fuel-hungry high horsepower applications.

We have decided to go all-in on gas,” declared Feucht during his keynote address at HHP Summit on Sept. 27. “We are going to invest because we see a global market long term. Large engines are going gas. It’s not debatable; it’s our conclusion.”

Feucht’s remarks confirmed that Caterpillar will provide natural gas fuel as an option for engines across its many high horsepower lines for marine, rail, mining, earthmoving and drilling operations. The company recently announced its first expected liquefied natural gas (LNG)-powered will likely include Cat 793, 795 and 797 mining trucks, and locomotives produced by Electro-Motive Diesel (EMD), a unit of Caterpillar’s Progress Rail Services.

“There is huge economic incentive to move to natural gas,” Feucht stated noting that price of oil and gas are going to stay disconnected for the foreseeable future thereby creating an economic incentive to use natural gas in fuel-hungry high horsepower applications.

Current users of natural gas to power high horsepower equipment are realizing a cost savings of 30 to 50 percent. New technologies expanding access in North America have contributed to the low-cost of natural gas.

Caterpillar to Produce More Gas Fueled Equipment and Engines, USA LNG World News.

Recap: Worldwide Field Development News (Apr 6 – Apr 12, 2012)

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This week the SubseaIQ team added 4 new projects and updated 22 projects. You can see all the updates made over any time period via the Project Update History search. The latest offshore field development news and activities are listed below for your convenience.

Africa – Other
Apache Secures Rig to Drill Mbawa Prospect
Apr 10, 2012 – Apache has secured the use of the deepwater drillship Deepsea Metro 1 (UDW drillship) to drill the Mbawa prospect. The operator is anticipating a spud date within the third quarter of 2012, pending on when the rig finishes with its current operations. The well is expected to take about 45 to 60 days to complete to a planned total depth of 10,662 feet (3,250 meters) in a water depth of 2,821 feet (860 meters). It is estimated that Mbawa has a maximum potential to contain 4.9 billion barrels of oil-in-place at the main Tertiary/Cretaceous level with significant additional potential also to be tested by the well at the deeper Upper Jurassic level and shallower Tertiary levels.
Project Details: Mbawa
S. America – Brazil
Oceaneering to Supply Umbilicals for Whales Park Development
Apr 12, 2012 – Oceaneering International has secured a contract from Petrobras to supply nearly 85 miles (135 kilometers) of thermoplastic production control umbilicals for the Whales Park (formerly Baleia Azul) field development project offshore Brazil in the Espirito Santos Basin. Product manufacturing is slated to commence in 4Q 2012 and be completed in 4Q 2014.
Project Details: Espadarte
Petrobras Completes Iara Extension
Apr 10, 2012 – Petrobras has completed drilling an extension to exploratory well 3-BRSA-1032-RJS (3-RJS-697) in the Iara Evaluation Area in the pre-salt area of the Santos Basin. The well, informally known as Iara Oeste, is the third well drilled in the Discovery Evaluation Plan 1-BRSA-618 (Iara). Drilling results have confirmed good quality oil samples ranging from 21 and 26 degrees API in carbonate reservoirs of the pre-salt. Iara Oeste is located 139 miles (223 kilometers) off the coast of Rio de Janeiro, about six miles (nine kilometers) from the discovery well in a water depth of 7,054 feet (2,150 meters).
Project Details: Iara
Europe – North Sea
Valiant Fails to Hit Pay in Cladhan
Apr 12, 2012 – Valiant Petroleum will plug and abandon the Cladhan South exploratory prospect in Block 210/29c in the UK sector of the North Sea. The well encountered multiple Upper Jurassic sand channels on prognosis, none of which were thought to be hydrocarbon-bearing.
Project Details: Cladhan
Marathon to Submit Boyla POD
Apr 11, 2012 – Marathon expects to submit a plan of development for the Boyla field subsea tie-back to the Alvheim FPSO in the first half of 2012. First oil is expected in 2014.
Project Details: Alvheim
Marathon Mulls Completing Caterpillar as Satellite to Boyla
Apr 11, 2012 – During the first quarter of 2011, the Caterpillar exploration well in PL 340BS was completed as an oil discovery. Caterpillar, located close to the Boyla field, will now most likely be developed through the Boyla subsea development facilities.
Project Details: Caterpillar
Duart Resumes Production
Apr 11, 2012 – Bridge Energy has restarted production at the Duart field, which has been shut-in since Oct. 5, 2011 as a result of planned maintenance activity on the host Tartan platform. The extended shutdown on the Tartan platform has enabled completion of a more comprehensive maintenance work scope which should increase the near term uptime of the facility.
Project Details: The Greater Tartan Area
Total’s Elgin Relief Well May Take More Than 6 Months
Apr 6, 2012 – Total estimates that it may take more than six months to drill relief wells near the Elgin oil rig in the Norwegian North Sea to stop a natural gas leak. The company is currently drilling a relief well to cut off the gas at the level of the reservoir at about one kilometer from the problematic well. Total plans to drill two relief wells, the second one acting as a backup. Another solution is also in the works: pumping heavy mud into the well to balance the pressure and end the leak. The Elgin/Franklin project has been shut-in since Monday, March 26.
Project Details: Elgin/Franklin
Asia – SouthEast
Lundin Says Bertam a Likely Commercial Success
Apr 11, 2012 – In January 2012, the Bertam-2 appraisal well was successfully completed proving the continuity and quality of the K10 oil reservoir sandstone. Lundin stated Bertam is likely a commercial oil field and studies are now progressing to review potential development concepts.
Project Details: Bertam
Lundin to Appraise Janglau Field
Apr 11, 2012 – Lundin Petroleum reported that the Janglau-1 well, completed in November 2011 as an oil discovery, proved a new play concept in Oligocene intra-rift sands. The discovery will require further appraisal drilling to determine commerciality.
Project Details: Janglau
N. America – US GOM
BHP Billiton Bites into $708M Funding for Mad Dog Proj.
Apr 11, 2012 – BHP Billiton has approved the $708 million (BHP Billiton share) in pre-commitment funding for the Mad Dog Phase 2 project in the deepwater Gulf of Mexico. The funding will facilitate detailed engineering and the procurement of long lead time items related to the hull, topsides and subsea equipment. The proposed project, focusing on the southern portion of the field, includes the development of a second spar facility with all subsea production and injection wells. The new facility is estimated to have a design capacity of approximately 130,000 bopd that will be exported via the Mardi Gras Pipeline under existing agreements. A final investment decision is anticipated in 2013 with first production scheduled for 2018.
Project Details: Mad Dog
McMoRan Trying to Establish Commercial Production at Davy Jones
Apr 10, 2012 – McMoRan has completed technical work on the Davy Jones No. 1 well on South Marsh Island Block 230 in the GOM. Work is ongoing to establish commercial production from the well, stated the operator. To maximize production from the well and enable effective formation penetrations, McMoRan plans to use electric wireline casing guns that are larger than the tubing guns used to perforate the Wilcox “C” and “D” sands. The company expects its current operations to enable a measurable flow rate during the second quarter of 2012 followed by commercial production shortly thereafter.
Project Details: Davy Jones
Australia
Technip Scores Subsea Gig for Wheatstone Project
Apr 12, 2012 – Chevron awarded Technip a subsea contract for the Wheatstone project offshore Australia. The contract, covering the development of the Wheatstone and Iago fields, includes project management, design, fabrication and installation of subsea isolation valve, production tee protection structures, spools and jumpers; transportation and installation of manifolds, foundation structures and pipeline termination structures; and the supply and installation of 25 miles (41 kilometers) of umbilicals.
Project Details: Wheatstone
Technip Grabs EPCI Contract for Ichthys Field
Apr 11, 2012 – Inpex awarded Technip a flexible pipe supply lump sum contract for the Ichthys gas field in Australia. This contract is part of the overall subsea umbilical, riser, flowline EPCI contract. The Supply A ??? production & gas export lines’ contract includes: 1.86 miles (3 kilometers) of technologically advanced smooth bore 10-inch-diameter flexible gas export risers, 1.86 miles (3 kilometers) of 12-inch-diameter production risers. The contract is scheduled to be completed in the first semester of 2015. Gas from the Ichthys field will undergo preliminary processing offshore to remove water and extract condensate. The 552 mile (889 kilometer) Ichthys gas export pipeline will transport production from the offshore central processing facility through a subsea pipeline to the onshore liquefied natural gas (LNG) facility to be located at Darwin.
Project Details: Ichthys
Clough AMEC Receives ORM Contract for Wheatstone Facility
Apr 11, 2012 – Chevron awarded Clough AMEC a contract for the operability, reliability and maintainability component of Wheatstone’s offshore facility. The scope of work involves building the maintenance database, assuring operational readiness for the offshore facility, including writing of all operations procedures, all training and development programs, and operations engineering and support services. The work will be performed by Clough AMEC, with support from AMECs specialist Performance Improvement team. Work will commence immediately and will last for about three years.
Project Details: Wheatstone
Clough AMEC Secures Work for Eni’s Blacktip
Apr 10, 2012 – Clough Limited has received a contract for the provision of maintenance support to the 1.3 Bcm per year onshore gas treatment plant and the offshore unmanned wellhead platform for Eni’s Blacktip project. The scope of work involves the provision of trades labor to support routine and campaign maintenance. Supporting services include specialist consultancy services, multidiscipline engineering, procurement, and management of subcontractors and fabrication. The initial contract is for three years with further extension options. Blacktip has been producing since September 2009.
Project Details: Blacktip
Browse Amendments Receive Govt Approval
Apr 10, 2012 – Woodside was advised that the Commonwealth Minister for Resources and Energy and the WA Minister for Mines and Petroleum have approved amendments to the Browse Basin retention leases. The amendments include extending the condition relating to readiness for a final investment decision on the proposed Browse LNG Development in Australia from mid-2012 to the first half of 2013. This will allow time to better evaluate the outcomes of front-end engineering and design work and the results of the tender processes for the developments major contracts. The Browse LNG development consists of three fields: Torosa, Brecknock and Calliance. It is estimated they hold roughly 13.3 Tcf of dry gas and 360 million barrels of condensate in reserves.
Project Details: Browse LNG

USA: Cummins Introduces New 4000 hp Diesel Marine Engine QSK95

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Cummins Inc, a leading manufacturer of diesel engines for the commercial marine industry, is going to introduce the new QSK95 engine with 4000 hp (2983 kW) output as the most powerful high-speed diesel configured for marine propulsion and auxiliary generator sets.

The 95-liter, 16-cylinder engine, revealed today at the Seymour Engine Plant, is designed ready to meet EPA Tier 4 low-emissions regulations taking effect in 2014.

The QSK95 will allow Cummins to meet our customers’ growing power requirements, while meeting increasingly more stringent global emissions,” said Jenny Bush, General Manager– Cummins Commercial Marine Business. “It also strengthens Cummins position as a global player in the commercial marine industry by allowing us to enter new market segments.”

The QSK95 offers flexibility in power configurations for propulsion, auxiliary, genset and diesel electric applications, and with ratings from 3200 hp to 4000 hp (2386-2983 kW), the QSK95 provides an ideal solution for high-hour, hardworking vessels such as tugs, inland waterway towboats, offshore support vessels, passenger transport, dredges, short sea cargo and coastal tankers.

While achieving a power output previously exclusive to medium-speed marine engines, the QSK95 brings the advantage of a lower capital cost, a more compact installation and exceptional fuel efficiency. Extended service and more cost-effective rebuilds add a further economic advantage.

The QSK95 is easily integrated with Cummins C Command Elite Premium and Elite Plus class-approved panels. C Command instrument panels include a selection of monitoring and display options to help operators protect and enhance engine operations and manage operating costs by logging critical operating parameters such as engine load, duty cycle, speed and fuel consumption, while providing diagnostic and prognostic capabilities. A common point of connection in the customer interface box simplifies the link between engine electronics and vessel systems.

The QSK95 meets IMO Tier II and EPA Tier 3 emissions standards with highly efficient fuel injection and clean combustion. For highly emissions-regulated areas around the world, the QSK95 will lead the way forward for 4000 hp (2983 kW) marine engines to achieve EPA Tier 4 emissions using Cummins own exhaust aftertreatment systems. This uniquely integrated solution will offer more efficient packaging and will reduce space constraints.

The QSK95 has been engineered for environmental stewardship, meeting Green Passport requirements for zero disposal impact. Further, the Cummins ELIMINATOR™ oil filtration system eliminates the need for lube oil filters, while on-engine fuel filter replacement cartridges make for more cost-effective maintenance and disposal. Customers can feel confident knowing that the teams working on QSK95 projects bring with them years of commercial marine experience.

With countless successful globally coordinated projects to our credit, the technical teams assigned to QSK95 marine projects will work closely with the customer, shipyard and naval architect to ensure long-term benefit,” said Geoff Conrad, QSK95 Account Executive – Cummins Commercial Marine Business. “We are looking forward to working with our current and prospective customers on QSK95 opportunities and projects.”

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