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Houston, Texas: Deep Down Receives Multiple Services Contracts
Deep Down, Inc., an oilfield services company specializing in complex deepwater and ultra-deepwater oil production distribution system support services recently announced they have received multiple contracts from an international operator and a major international controls manufacturer for the manufacture of flying leads and associated services worth in excess of $2.3 million; pending finalization of engineering design for one of the projects.
The first contract is for additional flying leads, equipment and services in support of a project located offshore Ghana, West Africa with delivery scheduled in the third quarter 2012. The second contract, which is also scheduled for delivery in the third quarter 2012, is for installation on a project in the U.S. Gulf of Mexico. The third contract is for a project on the Northwest coast of Australia, with delivery scheduled the first quarter 2013. The latter is a first-of-its-kind deployment with five electrical quads which integrate into the loose steel-tube flying lead (LSFL) bundle with end terminations serving as mini umbilical termination assemblies (UTAs). This configuration was chosen for its superior handling characteristics, as well as installation efficiency; a key advantage is that installation can be achieved with a single ROV assisted lay down instead of multiple lay downs.
Ron Smith, Chief Executive Officer of Deep Down, Inc. stated, “These awards reaffirm the efforts Deep Down has put into our flying leads to provide our customers with quality, affordability and most importantly, a more efficient and safer installation solution.”
Deep Down, Inc. is an oilfield services company serving the worldwide offshore exploration and production industry. Deep Down’s proven services and technological solutions include distribution system installation support and engineering services, umbilical terminations, loose-tube steel flying leads, distributed and drill riser buoyancy, ROVs and tooling, marine vessel automation, control, and ballast systems. Deep Down supports subsea engineering, installation, commissioning, and maintenance projects through specialized, highly experienced service teams and engineered technological solutions. The company’s primary focus is on more complex deepwater and ultra-deepwater oil production distribution system support services and technologies, used between the platform and the wellhead.
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Seadrill Expects Stronger Second Quarter after Robust 1Q 2012
Norwegian deepwater drilling company Seadrill said Monday that it expects earnings for the second quarter of 2012 to be favorably affected by the starting up of operations in April and June of its ultra-deepwater semi-submersible rigs West Leo (UDW semisub) and West Capricorn (UDW semisub).
Reporting its first quarter results, the firm said that it also expects to receive a full quarter of earnings from its harsh environment jack-up West Elara (490′ ILC) – which began operations for Statoil in March.
West Leo began its contract with Tullow Oil offshore Ghana in April, while West Capricorn is due to begin operations for BP in the US next month.
For 1Q 2012 Seadrill reported operating profits of $456 million, compared with $430 million for 1Q 2011. However, net income was lower than for 1Q 2011, at $480 million compared with $934 million, on account of a one-off $477 million gain last year in connection to the deconsolidation of Seadrill’s subsidiary Well Services.
Total revenues for the three month period to March 31 were broadly in line with last year at $1,050 million (1Q 2011: $1,100 million).
“We are pleased to report another solid quarter for Seadrill reflecting a strong underlying operational performance,” said Seadrill Chief Executive Officer Alf Thorkildsen.
“Furthermore, the outlook and fundamentals for the oil and gas industry remain strong. Encouraging exploration successes in established as well as frontier basins are leading to an increasing backlog of appraisal and development drilling projects. These strong fundamentals support the expectation of continued strength in all sectors of the contract drilling industry for the foreseeable future. As a consequence we have ordered six newbuilds in the last three months and the Company now has 18 drilling units under construction.”
A former engineer, Jon Mainwaring is an experienced journalist who has written about the technology, engineering and energy industries. Email Jon at jmainwaring@rigzone.com.
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Recap: Worldwide Field Development News (Mar 16 – Mar 22, 2012)
This week the SubseaIQ team added 8 new projects and updated 32 projects. You can see all the updates made over any time period via the Project Update History search. The latest offshore field develoment news and activities are listed below for your convenience. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Ghana: Aker Solutions Signs Well Service Contract with Tullow
Aker Solutions has signed a frame agreement with Tullow Ghana Limited to provide well intervention services for the oil company’s Jubilee and Tano deepwater fields offshore Ghana, West Africa.
The initial contract period is for three years, with two additional one-year options (3+1+1). Aker Solutions estimates that the agreement will generate annual revenues of approximately USD 4 million.
Under the agreement Aker Solutions will provide slickline and coiled tubing equipment and services, which are conducted with the objective of maximising production of oil and gas. Aker Solutions has delivered well services to Tullow’s Jubilee field since 2008.
“Tullow is the largest independent oil and gas exploration and production company operating offshore West Africa. We are pleased to be able to support their ambitious growth plans through providing our technologies and services to increase oil recovery ratios,” says Wolfgang Puennel, head of well intervention services in Aker Solutions.
“Ghana is an up-and-coming oil nation. This new and extended contract with Tullow provides us with a solid long term outlook for our operations there. We will utilise this to set up a more permanent presence in Ghana, which will also drive the need for a larger local workforce. This will put us in a better position to secure further oil service work in the country,” adds Puennel.
Aker Solutions’ contract party is Aker Qserv Ltd.
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PGS to Start Seismic Survey at Corentyne Licence, Offshore Guyana
CGX Energy Inc. has awarded a 1,160 square kilometre 3D marine seismic contract to a subsidiary of Petroleum Geo-Services (PGS). PGS’s Ramform Challenger will undertake the five week contract at CGX’s fully owned Corentyne PPL, offshore Guyana, commencing mid-December.
PGS is a leading geophysical services company founded in 1991 in Norway with offices in 25 countries and regional centres in London, Houston and Singapore. PGS offers a broad range of geophysical services and has 14 offshore seismic vessels.
Stephen Hermeston, President and CEO stated,
“This 3D seismic program has been designed to better image the up-dip limits of the Eagle Deep stratigraphic play at the Turonian and Campanian and to cover the two early Cretaceous, Albian prospects (Crabwood and Kabukalli) which are underlying the Company’s 100% owned Corentyne offshore Petroleum Prospecting License (PPL) and for which CGX obtained an independent resources evaluation report from DeGolyer and MacNaughton of Dallas earlier this year that provided a total best estimate (P50) of prospective resources of 325 million barrels of oil. We are enthused about these prospects which CGX plans on pursuing subsequent to the drilling of the Company’s Eagle-1 well that will test the Eocene and Maastrichtian trend.”
CGX Energy is a Canadian-based oil and gas exploration company focused on the exploration of oil in the Guyana-Suriname Basin, an area that is ranked second in the world for oil and gas prospectivity by the United States Geological Service. CGX is managed by a team of experienced oil and gas and finance professionals from Guyana, Canada, the United States and the United Kingdom.
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Kosmos Energy Announces 3Q Results. Provides Update on Operations Offshore Ghana
Kosmos Energy announced yesterday financial results for the third quarter 2011. The Company generated net income attributable to common shareholders of $52 million in the third quarter of 2011, or $0.13 per basic and diluted share. This compares to a net loss attributable to common unit holders of $99 million for the same period in 2010.
Highlights for the third quarter 2011 include:
- Two Jubilee liftings totaling approximately 2 million barrels of oil, net to Kosmos
- EBITDAX of $191 million
- Grew total liquidity by over $115 million to nearly $1.1 billion
- Exploration discovery at Akasa on West Cape Three Points Block
- Successful Enyenra-3 appraisal well on Deepwater Tano Block
- Jubilee Unit participation interest increased as a result of expert redetermination
- Expanded exploration portfolio, with increase in offshore Morocco position to approximately 12 million gross acres
Third-quarter 2011 oil revenues were $230 million, or $115.50 per barrel sold. Production expense was $24 million, or $12.13 per barrel, and depletion and depreciation was $43 million, an average of $21.36 per barrel. Exploration expense for the third quarter 2011 was $11 million. General and administrative costs were $39 million, with over 50 percent related to non-cash items, primarily the Company’s long-term equity incentive compensation program. Interest expense was $17 million. The effective tax rate for the third quarter 2011 was 49 percent.
Cash and cash equivalents at the end of the third quarter 2011 was $656 million, with long-term debt of $1 billion. Total liquidity, including cash and cash equivalents and available borrowing under the debt facility, was nearly $1.1 billion.
Brian F. Maxted, President and Chief Executive Officer, commented, “Our results for the third quarter were very strong, supported by our oil liftings and continued robust Brent pricing. While production at Jubilee has not ramped up as quickly as planned, the ultimate resources recoverable from this giant field are unchanged, and we continue to be encouraged by its reservoir performance. We had a number of positives in our exploration and appraisal drilling programs for the quarter, with successes on both of our Ghana blocks, which continue to highlight the value upside of our Ghana assets. At the same time, we are further enhancing the Company’s portfolio of exploration opportunities, capturing substantial acreage offshore Morocco during the quarter.”
Jubilee Unit Redetermination
A redetermination of the Jubilee Unit tract participation interest was recently completed, resulting in an increase in Kosmos’ Unit interest. As determined by an independent expert analysis, a greater portion of the Jubilee field resources reside in the West Cape Three Points Block than was established under the original tract participations. The original tract participations in the Jubilee Unit were 50 percent for both the West Cape Three Points and Deepwater Tano Blocks. After expert analysis, the Unit interests have been changed to 54.37 percent for the West Cape Three Points Block and 45.63 percent for the Deepwater Tano Block. Accordingly, the Company’s Jubilee Unit interest increased to 24.08 percent from 23.51 percent.
Operational Update
Ghana
All of the Jubilee Phase 1 wells have been drilled, and current oil production is approximately 80,000 barrels per day. Identified completion issues require one of the producing wells to be sidetracked, as well as downhole remediation on certain other wells. Once these completion issues have been resolved, production is expected to continue ramping up toward the FPSO facility capacity. The J-7 production well is currently being sidetracked, with completion expected at the beginning of 2012. Additionally, the Phase 1A development, including five production and three injection wells, is being planned to commence drilling in 2012.
Kosmos is currently drilling the Teak-3 appraisal well on the West Cape Three Points Block, testing a potential updip stratigraphic extension of the discovery wells. Results at Teak-3 are expected by the end of November 2011. The Teak-4 appraisal well is scheduled to begin drilling late in the first quarter of 2012.
On the Deepwater Tano Block, Kosmos and its partners are currently redrilling the Enyenra-1 (previously known as Owo-1) discovery well, with plans to perform a drill stem test at that location. Immediately following operations at Enyenra-1, the Enyenra-4 appraisal well will be drilled over 4 miles downdip from Enyenra-2, on the south flank of the discovery. Results at Enyenra-4 are expected in the first quarter of 2012.
New Ventures Portfolio
Kosmos’ new ventures team is pursuing a number of opportunities to further enhance the Company’s exposure to new petroleum systems. Kosmos recently entered into a new petroleum agreement for the Essaouira Block offshore the Kingdom of Morocco. The Essaouira Block covers 2.9 million gross acres and is located north of the Company’s Foum Assaka Block. Both blocks are in the Agadir basin. Kosmos will be the operator of the Essaouira Block with a 37.5 percent working interest. As a result of the new agreement, Kosmos’ total acreage position offshore Morocco has grown to approximately 12 million gross acres. The Company is planning an approximately 5,000 square kilometer seismic shoot offshore Morocco on the Foum Assaka and Essaouira Blocks, targeted to begin before year-end 2011.
Kosmos Energy Ltd. is an international oil and gas exploration and production company focused on underexplored regions in Africa. The Company’s asset portfolio includes major discoveries and exploration prospects with significant hydrocarbon potential in several West African countries. Kosmos is listed on the New York Stock Exchange and is traded under the ticker symbol KOS.
Source: Kosmos Energy, November 11, 2011
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Deepwater Millenium Drillship Not Moving to Brazil. Stays in Ghana
An ultra-deepwater rig leased by Anadarko Petroleum Corp is no longer heading to Brazil, according to rig owner Transocean Ltd . A source familiar with the matter said last month that Anadarko was considering the sale of some assets in Brazil, which include some deepwater prospects.
Transocean said on Monday its Deepwater Millennium rig would now remain off Ghana at a rate of $576,000 per day through this month, with the rest of its Anadarko contract through July 2013 now up in the air.
“Subsequent operating location is yet to be determined, and the dayrate under the contract could change depending on the country of future operations,” Transocean said in its latest fleet status report.
The Millennium had been set to move to Brazil in July to work on a daily rate of $561,000, according to Transocean’s July fleet status report.
The Switzerland-based rig contractor also said on Monday its midwater rig, Actinia, would move from Malaysia to India to work for ONGC next May, on a three-year contract with a dayrate of $190,000.
Finally, a previously idle Transocean shallow-water rig, the Harvey H. Ward, will start work next month for Pertamina off Indonesia on a $97,000-per-day deal running to May 2013.
Source: Reuters
Via: OET
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Ghana: Seadrill Inks One-Year Contract for Ultra-Deepwater Newbuild West Leo
Tullow Oil Ghana Ltd., a subsidiary of Tullow Oil plc has awarded Seadrill a one-year contract for operations offshore Ghana with the newbuild ultra-deepwater semi-submersible rig West Leo.
The potential contract revenue for the one-year period is US$204 million which includes US$18 million in mobilization revenue. In addition, the rig can earn a daily performance bonus of up to 10 percent.
West Leo is currently under construction at Jurong Shipyard in Singapore with delivery scheduled for the end of January 2012. The unit will subsequently start its transit to Ghana where commencement on the Tullow contract is expected in mid April 2012. West Leo will be the second unit of the Moss Maritime CS50 Mk II design that Seadrill puts into operations.
Alf C Thorkildsen, Chief Executive Officer in Seadrill Management AS, says, “We are very pleased to have secured our first deepwater contract with Tullow, a fast growing and dynamic independent oil and gas company. We believe Ghana, which is one of the most promising new deepwater frontiers, may offer significant opportunities for us going forward. We continue to strengthen our revenue backlog and have with this contract secured attractive employment for all our deep and ultra-deepwater units.”
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