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Tamar Partners Dive into FLNG FEED (Israel)

Delek Group gas subsidiaries announced that the Pre-FEED stage of Tamar and Dalit floating liquefied natural gas project (FLNG), off the coast of Israel, has now been successfully completed.

Therefore, the Tamar partners decided to begin the second phase-front-end engineering design (FEED). LNG production is expected to be up to 3 MMTPA. In accordance to that, Daewoo Shipbuilding & Marine Engineering Co. Ltd. (DSME) signed an agreement with Levant LNG Marketing and Pangea LNG BV for the completion of the FEED stage.

DSME will carry out the costs of FEED and Tamar partners will contribute a total amount of $15 million (100%). The agreement has been set for two years, or until the date of the final investment decision of the FLNG project, whichever is earlier.

Tamar Partners Dive into FLNG FEED (Israel)| Offshore Energy Today.

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.

Odfjell Offshore Raising up to $500M to Develop Fleet

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by  Odfjell Offshor
Press Release
Monday, March 12, 2012

Norway’s Odfjell Offshore plans to raise up to $500 million in a private equity placing to develop further its fleet of six state-of-the-art ultra deepwater and harsh environment offshore drilling units. In addition, Odfjell Offshore may over-allot up to 10 percent of additional new shares, the firm announced Monday.

Parent company Odfjell Drilling will remain a majority shareholding in Odfjell Offshore after the private placing and will continue to provide its 40 years of operational experience, as well as its 3,000 highly skilled employees in the Odfjell Drilling organization, it said in a statement.

“Odfjell Offshore’s strategy is to expand our drilling operations in the ultra deep water and harsh environment market,” said Odfjerll Offshore Chairman Simen Lieungh. “Our fleet is uniquely positioned and we have a strong backlog. Currently, we have one newbuild ultra deep water semi under construction. In addition we have secured an option to build two similar units at Daewoo Shipbuilding & Marine Engineering in South Korea.”

Odfjell Offshore has retained DNB Markets, Pareto Securities, RS Platou Markets and Swedbank First Securities as joint lead managers and bookrunners, while Danske Markets and Nordea Markets as Co-Lead Managers to advise on and effect the private placement of new shares directed towards investors in Norway and other jurisdictions subject to applicable exemptions from registration and other requirements under applicable securities laws.

The offer price per share will be determined through a book-building process within an indicative price range of between $7 and $8 per share. The bookbuilding period commences Mar.12 2012 and will close Mar. 23 2012. Odfjell Offshore may, however, at any time resolve to shorten or extend the application period at its own discretion, it said.

Odfjell Offshore owns a fleet of highly capable and modern semisubmersible drilling units and UDW drillships currently under contracts in Norway, UK, Brazil, Angola and Tanzania:

  • Deepsea Atlantic (DW semisub) and Deepsea Stavanger (DW semisub).
  • – Two state-of-the-art ultra deepwater and harsh environment semi-submersible drilling units delivered in 2009 and 2010.
  • ‐ Deepsea Aberdeen.
  • – Ultra deepwater and harsh environment semi-submersible drilling rig currently under construction at Daweoo Shipyard in South Korea with expected delivery in May 2014.
  • – Options for two similar units with scheduled delivery in December 2014 and March 2015.
  • Deepsea Metro I (DW drillship) and Deepsea Metro II (DW drillship).
  • – Two ultra deepwater drillships delivered in 2011
  • Deepsea Bergen .
  • – Enhanced 3rd generation North Sea semisubmersible drilling rig designed and built by Odfjell in 1983 (with subsequent substantial upgrades).

Odfjell Offshore has decided to apply for listing on Oslo Stock Exchange following completion of the private placing and targets listing in end May 2012.

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INPEX Orders USD 2 bln FPSO from DSME (South Korea)

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The second largest shipbuilder in the world, Daewoo Shipbuilding and Marine Engineering, Co, announces that it has received an order to construct a giant Floating Production Storage and Offloading vessel (FPSO).

The order comes from a Japanese oil giant, INPEX and is a part of the company’s Ichthys project, offshore Australia.

Daewoo made the announcement on the Korea Exchange, saying that the estimated worth of the project is $2 billion.

The FPSO will serve for offshore storage and export of condensate from the Ichthys field. The condensate will be transferred from the CPF to the FPSO and, further, it will be exported from the FPSO via a floating loading hose to offtake tankers.

The vessel will also treat and dispose of produced water. It will be located approximately 2 km from the Central Processing Facilitiy and will contain liquid (condensate and water) treatment facilities, living quarters and associated utilities.

South Korea’s shipbuilders have benefited greatly from the INPEX’s Ichthys project. Samsung Heavy Industries Co Ltd has recently received a $2.71 billion order for the construction of an offshore central processing facility (CPF) for the Ichthys project.

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Australia: Technip Wins Wheatstone Platform Design Contract from DSME

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Technip Oceania (TPO), a Technip Group ) operating centre in Perth, Australia, has been awarded a contract, worth approximately AUD110 million (€90 million), by South Korea’s Daewoo Shipbuilding and Marine Engineering (DSME) for the detailed design of Chevron’s Wheatstone offshore gas processing platform, located 200 kilometers off Western Australia’s coast.

The upstream (offshore) part of the project is comprised of the development of gas fields in the WA-17-R and WA-253-P petroleum titles located on the Northwest Shelf offshore Western Australia at water depths of 70 to 200 meters. Subsea gas-gathering systems will transport production to the processing platform where the gas and condensate will be treated. It will then be exported to the onshore gas plant located at Ashburton North, 12 kilometers west of Onslow, on the Pilbara coast of mainland Western Australia.

This award follows on from TPO’s successful completion of the front-end engineering design of the project, a contract awarded by Chevron in 2009. The contract represents a breakthrough for TPO, who are leading the work and performing over 40% locally in Australia. Frans Roozendaal, TPO’s Managing Director, says “the Wheatstone Platform is one of the largest offshore platforms ever built, and I am proud that we have been able to deliver the design for DSME from our Australian operation. We have had to expand locally to perform the work, with over 200 people in Perth working on the project.”

DSME’s Project Manager, KH Lee says “it has been good to be able to use Technip’s Australian office to lead this work. The continuation from FEED, the knowledge of Australian requirements, and the proximity to Chevron gives us a great advantage.”

Technip’s operating centers in Perth, Australia and Kuala Lumpur, Malaysia will execute the contract, which is scheduled to be completed in the second half of 2012.

Source

UK: Largest Contract in Odfjell Drilling’s History

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Odfjell Drilling has been awarded a significant pre-contract award with BP for the provision of a new build, semi-submersible drilling unit for use in the UK’s West of Shetland region. The contract value is approximately $1.2 billion, excluding options, and represents the largest contract in Odfjell Drilling’s 40 year history.

The new unit will be involved in drilling in the Schiehallion and Loyal fields and will form a key part of the Quad 204 development. The full contract, which is subject to approval by the Quad 204 Partnership, will have a fixed duration of 7 years and is due to start in Q4 2014.

In July 2011 BP announced a decision to progress a major re-development of the Schiehallion and Loyal oil fields to the west of the Shetland Islands.

Schiehallion and Loyal have produced nearly 400 million barrels of oil since production started in 1998 and an estimated 450 million barrels of resource is still available. The investment of circa £3 billion in the re-development of the fields will take production out to 2035 and possibly beyond.

President & CEO of Odfjell Drilling, Simen Lieungh states:

“This contract award from BP is of great importance and represents a solid contribution to the company’s further growth and is a recognition of Odfjell Drilling’s status as a reputable international drilling contractor. We have a track record of delivering new build units on time and on budget and this new build for BP will be the fifth new deep water unit for the company. We highly value our relationship with BP and look forward to developing this relationship further in the future.”

Jim Cowie, BP Vice President for Wells, said: “The Quad 204 partnership is making this major investment in its drilling capability in response to high future demand West of Shetland and a desire to invest in the latest equipment that can help deliver its business plans. This is an exciting development and one which builds on BP’s recent announcements concerning its investments in the North Sea. Odfjell Drilling is a safe, efficient and innovative drilling contractor that is performing well for BP in the North Sea and with Deepsea Stavanger offshore Angola.”

Fifth deepwater unit delivery

The new state of the art Sixth generation rig will be built in South Korea by Daewoo Shipbuilding & Marine Engineering (DSME).

“The new rig for BP is of the enhanced GVA7500 harsh environment design and will be a sister rig of the Deepsea Atlantic and Deepsea Stavanger previously delivered to us by DSME. We are pleased to continue our collaboration with DSME, says Mr. Lieungh.”

Construction engineering has commenced and keel laying is scheduled for March 2013.

Articles

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European Client Cancels Order, Says DSME

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Daewoo Shipbuilding & Marine Engineering said on Friday that a European customer called off a 589.3 billion Korean won ($520.8 million) ship order, making it the first cancellation of an order to the major shipbuilder this year.

The South Korean shipbuilder said in a regulatory filing that two VLCCs and two bulk carriers, which were ordered in 2008, were annulled because its client failed to honour payables. It did not identify the shipping company.

Industry officials say global shipping firms will cancel or delay orders due to the lack of credit amid Europe’s debt woes.

South Korea’s major shipbuilders have received requests to delay deliveries of 24 ships worth some $3 billion as the debt crisis in Europe bites, raising fears about a repeat of the 2008 downturn that hit the industry globally.

South Korea is home to the world’s biggest shipbuilders including Daewoo and Hyundai Heavy Industries.

Reporting by Hyunjoo Jin (Reuters)

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Hoegh LNG, DSME to Work on LNG FPSO for Israel’s Tamar Field

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Höegh LNG Holdings Ltd. has entered into an agreement with South Korea’s Daewoo Shipbuilding & Marine Engineering Co. (“DSME”) to start a project specific front-end engineering design (FEED) of an LNG FPSO solution for the Tamar gas field offshore Israel.

This agreement follows the recent announcement of the agreement between DSME consortium, DSME and its Norwegian joint venture D&H Solutions AS and Tamar field owners, Noble Energy, Delek and Isramco to exploit part of the Tamar field by use of an LNG FPSO.

The agreement states that Höegh LNG with selected partners shall be the owner and operator of the LNG FPSO and that DSME shall be the EPCIC contractor, subject to further engineering work and a final investment decision.

President and CEO, Sveinung Støhle, says: “We are excited about initiating the engineering work for an LNG FPSO to monetize the gas reserves in the Tamar field in Israel based on Höegh LNG’s already developed design. This is a result of Höegh LNG’s continuous effort over the past five years to promote technical and economical sound floating solutions for LNG production. We are pleased to work with DSME and the Tamar field owners in jointly developing one of the first LNG FPSOs to come to market. DSME has been our partner for several years and we are confident that together with the other Tamar partners we will design, construct and operate an excellent solution for bringing the Tamar gas to the market.”

Tamar gas field is located some 80 km west of Haifa in waters 5,500 feet (1,700 m) deep. The gross resource estimate of Tamar has been increased to 9 Tcf from 8.4 Tcf as a result of appraisal work, Noble Energy said recently in a press release.

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