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Galliano, LA: Edison Chouest to build 40 new supply vessels

BY: Jennifer Larino, Managing Editor

Edison Chouest Offshore said today it will build more than 40 new vessels to meet growing demand for offshore oil and gas support in the Gulf of Mexico, the Arctic and Brazil.

The new vessels continue an aggressive build campaign the Galliano-based company launched in 2011. The privately held company, which has vessels under construction at shipyards through the U.S. and in Brazil and Poland, did not disclose the cost of the newest round of builds.

Most of the construction work will be spread among Chouest’s four U.S.-affiliate shipyards — North American Shipbuilding in Larose, LaShip in Houma, Gulf Ship in Gulfport, Miss., and Tampa Ship in Tampa, Fla. — as well as its Brazilian shipyard, Navship.

The largest portion of the new build program will be the construction of 17 diesel-electric platform supply vessels. Chouest intends to market the new vessels, which feature a new hull form designed to carry more weight while lowering hydrodynamic resistance, as a more fuel-efficient option to oil and gas operators in the Gulf of Mexico.

Chouest’s plans also include two new ice class vessels designed for service work in the Arctic and four new subsea construction vessels slated for service in the Gulf of Mexico. The company’s fleet of icebreaking vessels, which will total six when the new builds are delivered, has supported Royal Dutch Shell’s drilling activity in Alaska.

Chouest also provided an update about its affiliated port facilities at Port Fourchon.  The C-Port 3 facility currently under construction will open in March and feature six covered slips to transfer cargo and provide support for deepwater support vessels. Design has begun on an additional section, C-Port 4, which could have as many as nine covered slips.

The company is also planning to expand its C-Terminal worksite at Fourchon to include outside storage areas, warehouses, cement and barite plants, and fuel, water, mud and drilling fluid sales stations. Chouest purchased the facility earlier this year.

Chouest, founded as Edison Chouest Boat Rental in 1960, operates a fleet of nearly 250 offshore service and support vessels worldwide.

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Gulf of Mexico: Harvey Gulf to Build LNG Marine Fueling Facility in Port Fourchon

Harvey Gulf International Marine CEO, Shane Guidry, announced that Harvey Gulf has secured plans to construct and operate the first LNG marine fueling facility in the United States, to be located at its vessel facility in Port Fourchon, Louisiana.

The fueling facility will be a vital addition to the growing national LNG supply infrastructure, supporting critical operations of the oil and gas industry’s offshore support vessel fleet operating on clean burning LNG.

Mr. Guidry commented: “To date, Harvey Gulf is the only company in North America that has committed $400M USD to build, own and operate LNG powered offshore support vessels as we’ll as two LNG fueling docks. It is clear that Harvey Gulf’s entire organization is committed to do its part to help reduce our impact on the environment.”

To support the development of the LNG fueling facility, Harvey Gulf has secured CH•IV International of Houston, Texas as the EPC (Engineering, Procurement and Construction) contractor. The facility will consist of two sites each having 270,000 gallons of LNG storage capacity. The tanks will be stainless steel Type ‘C’ pressure vessels with vacuum insulation and carbon steel exteriors. Each facility will be able to transfer 500 gallons of LNG per minute. Aside from the facilities primary role of supporting the Oil and Gas Industry, the facility will be capable of supporting over-the-road vehicles that operate on LNG. The estimate to complete the first site is February 2014, with the second site following shortly thereafter.

Expanding on its commitment to safety and security of vessel operations and port facilities, Harvey Gulf has actively enlisted the expertise of the USCG to participate at all levels of the development of this facility. Mr. Guidry noted “the success of our LNG new build program would not be possible without the gracious cooperation and commitment of the USCG personnel.”

Harvey Gulf also announced the signing of a 6th Offshore Support Vessel to be built at Gulf Coast Shipyard Group (formerly Trinity Offshore) in Gulfport, MS. With this 6th vessel, Harvey Gulf will become the largest owner and operator of LNG powered OSV’s in the world. These OSV’s represent an ongoing collaborative effort by the vessel designer, Harvey Gulf, ABS and the USCG to develop the most environmentally friendly OSV’s that will operate in the Gulf of Mexico, complying with the stringent ABS Enviro+ notation. With 43 persons on board, the vessels, carrying over 16,000 Bbls of liquid mud, 10,000 cu.ft. of dry cement and 1,500 Bbls of Methanol, are 302′x64′x24.5′ with 7,530 installed kW powering 2,700 kW z-drives.

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Gulf of Mexico: Port Fourchon rebounds

A deckhand prepares to secure a boat Friday at Port Fourchon. The port received minimal damage from Hurricane Isaac, the facility’s director says. Abby Tabor/Staff

Xerxes A. Wilson
Staff Writer

PORT FOURCHON — Hurricane Isaac could have been worse at this hub for boats, rigs and manpower that serve most of the Gulf of Mexico’s oilfield.

The port shut down Monday as a mandatory evacuation was ordered in advance of the storm. Isaac dealt a direct hit to the port early Wednesday, but the facility reopened two days later, emerging with what officials describe as minor damage.

Electricity was still out Sunday, but Director Chett Chiasson said the docks, supply yards and other facilities buzzed with activity.

“Our biggest concern was the possibility of channel restrictions and damages to facilities where we would not be able to operate efficiently,” he said, “but that doesn’t seem to have happened.”

Getting the port running was key to allow Gulf oil production to continue, he said.

As Isaac hit, the Federal Bureau of Safety and Environmental Enforcement estimated that 509 of the 596 oil-production platforms and 50 of the 76 drilling rigs the Gulf had been evacuated. By Sunday, workers remain evacuated from 131 platforms, 22 percent, and 18 rigs, 23 percent. About 71 percent of Gulf oil production and 55 percent of natural-gas production remained halted Sunday.

Through the weekend, massive oceangoing vessels could be seen navigating the port’s channels as gulf oil production resumes.

The port serves as a staging area for half the drilling rigs in the Gulf and production of about 20 percent of the nation’s oil supply, Chiasson said. Supplies, equipment and rig infrastructure are typically brought into the port by truck along La. 1 then loaded onto towering vessels before being transported to the Gulf.

Read More:  Houma Today

Port Fourchon plays a critical role

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Chett Chiasson
Contributor

Ask anyone on the bayou if they know about Port Fourchon, and you’ll no doubt get a yes. “That’s where my daddy works.”

“That’s where we launch our boat.” “That’s where oil comes from.”

But when you ask the average person how Port Fourchon works or what the Greater Lafourche Port Commission does, the answer is not so clear. Most people don’t know what a great gem we have here in our community, so here is a brief rundown: who we are, what we do, how we’ve worked our way into being one of the nation’s most important economic engines and why it is vital to keep that engine running.

The Greater Lafourche Port Commission is a political subdivision of the state of Louisiana, formed in 1960 and governed by a nine-member board, the only elected port commission in the state of Louisiana.

They represent a constituency that is comprised of the 10th ward of Lafourche Parish, which is essentially from the Intracoastal Waterway in Larose south to the Gulf of Mexico.

We have 37 employees that do an outstanding job of handling the day-to-day operations, maintenance and administration of Port Fourchon and the South Lafourche Leonard Miller Jr. Airport. The commission operates predominantly as a “landlord” providing basic infrastructure to its tenants.

We construct roads and waterlines, dredge channels, construct bulkheads and provide basic land at Port Fourchon.

We provide basic airport infrastructure like a runway, parallel taxiway, road access, waterlines, etc. Once the basic infrastructure is in place, the commission leases the property to businesses looking to serve the needs of industry.

At both the port and now the airport, the commission operates with its mission statement in mind: to facilitate the economic growth of the communities in which it operates by maximizing the flow of trade and commerce. We do this to grow our economy and preserve our environment and heritage.

ABOUT US

Port Fourchon sits at the mouth of Bayou Lafourche, where it empties into the Gulf of Mexico and is easily accessible from any area in the Gulf. Located near the end of La. 1, Port Fourchon is in the center of one of the richest and most progressive industrial areas in the Gulf region.

We are constantly expanding to meet the needs of business and industry. Under the direction of the commission, the port is fortunate to have the knowledgeable leadership, available land and irrefutable logistical advantage that enable it to be the nation’s premier port for the continued support of oil-and-gas activity in the Gulf of Mexico.

Port Fourchon has grown from humble beginnings in 1960 into 1,700 acres in the most efficient location to service the needs of the Gulf oil-and-gas industry, with state-of-the-art facilities that exist nowhere else in the world.

The port’s tenants provide services to 90 percent of all Gulf deepwater activity and about 50 percent of drilling rigs in the entire U.S. Gulf, both shallow and deepwater. This activity, coupled with Port Fourchon being the service base for the Louisiana Offshore Oil Port, means that Port Fourchon plays a strategic role in furnishing this country with about 18 percent of its entire oil supply.

The South Lafourche Leonard Miller Jr. Airport in Galliano has proven to be a valuable element of the transportation system of Lafourche Parish and the state. Recognizing the potential major importance of the SLA in providing air transportation services to support the continued development of Port Fourchon and offshore mineral exploration and production, the Port Commission acquired the SLA in 2001. The GLPC also acquired the 1,200 acres surrounding the airport, which is open for industrial development and industrial housing. The airport has rapidly increased aircraft traffic since completion of its 6,500 foot runway with 75,000 pound wheel-load capacity, resulting in a 300 percent increase in jet traffic. We continue to expand the airport, with plans to add new navigational aids, hangars and taxiway.

In January 2010, after working for the commission since September 2005, I was afforded the opportunity to become the executive director, only the second person to do so since the port’s inception. I knew it would be a challenge, with the tough economic times the country had been in, all of the construction projects we were involved in at the port and airport and the planning of the port’s 50th anniversary celebration, but never did I imagine what would be coming. Obviously, I am talking about the terrible tragedy of April 20, 2010, when the Deepwater Horizon exploded, killing 11 men and causing the worst oil spill in our nation’s history.

Port Fourchon was at the epicenter of the response, recovery and subsequent cleanup effort for this disaster. Since facilities at the port were the base for the Deepwater Horizon, the evacuated rig workers were brought to Port Fourchon en route to getting back to their families.

With that began the influx of media and all that entails. Once it was realized that there was a major problem with the well and the oil was being emitted uncontrolled, we were tasked with preparation.

We began working with Lafourche Parish President Charlotte Randolph and her emergency preparedness staff to formulate a plan of action for protecting the parish’s coastline and keeping the vital economic activity at Port Fourchon operational throughout cleanup and waterway closures.

We spent countless hours meeting and planning, coordinating breach closures and ways to continue keeping Belle Pass, the port’s main waterway, open even though oil was approaching. When we knew that it was only a matter of time before we saw oil impacting our coast, we offered the commission’s Port Fourchon Operations Center for response collaboration efforts.

At that point, our Ops Center became the Lafourche Parish Emergency Operations Center for the oil-spill response. Our approach to the response was not “us against them,” but “How can we help?” That proved to be very successful. The collaborative group was comprised of the United States Coast Guard, BP, Governor’s Office of Homeland Security, Louisiana National Guard, Louisiana Department of Wildlife and Fisheries, Lafourche Parish Government, Lafourche Parish Sheriff’s Office, Port Fourchon Harbor Police and Port Commission executives.

THE MORATORIUM

Just when we were beginning to get a handle on the oil spill, the president and his administration decided to issue an arbitrary six-month moratorium on drilling and permitting in the deepwater Gulf of Mexico.

This action brought our region, a region of constant growth and record low unemployment that was not seeing much negative impact from the struggling national economy, to a screeching halt. Knowing that the tenants of Port Fourchon were going to be severely impacted by the federal government’s careless actions, the Port Commission proactively chose to freeze escalation fees and reduce basic land rental rates by 30 percent for one year.

This action served its purpose effectively, even though it meant millions of dollars of lost revenue for the port commission, because it helped our port tenants, especially the small, growing companies, to have a little breathing room to develop their financial strategies and to cope with the sudden moratorium-induced loss of current and future business. It was scary to many of us when the cranes stopped moving in Fourchon. We wanted to let our tenants know that we were right there with them in the trenches, fighting against the one-two punches of oil spill and moratoriums.

The moratorium was lifted on Oct. 12, 2010, and despite a horde of new regulations, rules, processes and acronyms, still no permits were issued for deepwater drilling. Moratorium became “permitorium.”

To this day, permit issuances for both deepwater and shallow water activities remain few and far between. Based on the Department of Interior’s own statistics, permits for deepwater activities are 40 percent off the mark, shallow-water permits are 60 percent down, and overall turnaround time for all permits is 40 percent slower. I, for one, believe that this is unacceptable.

These permitting issues that continue to inhibit the oil-and-gas industry have a cascading effect on this nation as a whole, not just “Big Oil,” as the Obama administration would say. It starts at the top with the oil-and-gas companies, then gets transferred through the supply chain.

The industry purchases supplies, equipment, high-end technology, geological and other services from vendors in every corner of the United States. It reaches each household in some form or fashion. The downturn in energy exploration and production in the Gulf of Mexico has affected not only Port Fourchon but the entire country.

Because of the importance of the oil-and-gas industry to our way of life, the commission helped organize the Gulf Economic Survival Team. This organization, through the leadership of Department of Natural Resources Secretary Scott Angelle, has been instrumental in facilitating what progress has been made on the permitting front. GEST and its Executive Director Lori Leblanc must be applauded as they have brought industry executives and BOEMRE staff together in an attempt to work out the regulatory/permitting issues. There is a still huge “activity gap” between the regulatory regime’s willingness and ability to issue much-needed permits and the oil-and-gas industry’s capabilities to invest in the energy security of our nation.

MOVING FORWARD

According to a study commissioned by GEST, if the bureau could close the “activity gap,” 2012 could see 230,000 American jobs, $44 billion added to the U.S. gross domestic product, $12 billion in tax and royalty revenues, 400,000 barrels more of oil produced per day, and a reduction of $15 billion in imported oil costs to the nation. In a time in this country when we have a jobs problem, a revenue problem, a spending problem and an energy problem, the answer is clear. Issue the permits now! There are thousands of workers in Port Fourchon who just want to see the cranes moving again.

Obviously, the last two years for the commission, Port Fourchon, and its tenants have been a roller-coaster ride. Personally, it has been an enormous learning experience. From federal, state, and local agency head visits to television interviews and testifying at congressional hearings, the first two years of my tenure as executive director have molded the future and set a path for what is to come.

We at the commission stand ready and able to tackle any challenge that comes our way.

We do this with the mindset of what is best for our community. That is why in looking toward the future, we plan to continue to expand Port Fourchon and the South Lafourche Leonard Miller Jr. Airport.

The issues we currently face will be resolved, and we stand poised to capitalize on the activity that will follow. We will continue to support our tenants in every way possible as a sign of appreciation for the prosperity that they have given to our community. Port Fourchon works. Period!

Chett Chiasson is the executive director of Port Fourchon.

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Fourchon director says port has rallied despite spill

by Cara Bayles

The executive director of Port Fourchon says the moratorium on drilling has affected individual tenants, but the port continues to expand.

Speaking before the South Central Industrial Association’s monthly membership meeting on Tuesday, Chett Chiasson said Fourchon, which services 90 percent of all deepwater activity in the Gulf of Mexico, has had a rough ride since it became the emergency operation center in the wake of the BP oil spill.

The six-month federal ban on new offshore-drilling permits that followed the spill posed a challenge to the 250 companies that use the port.

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“For us, deepwater is where the action is,” he said. “We feel that the future of this nation’s energy stability rests in our ability to access the resources in the Gulf of Mexico.”

Prior to the moratorium, Chiasson said the port was buzzing with activity, with 15,000 people per month being flown to offshore sites supported by the port. Now, Chiasson says, that number is down 40 percent.

Yet Fourchon is expanding, adding another 400 acres of land, expanding the runway on the South Lafourche Leonard Miller Jr. Airport and supporting the state Transportation Department’s two-lane elevated highway project, which will connect the port to Golden Meadow.

Chiasson credited the port’s success to a property tax, which brings in about $3 million per year, as well as its strategy during the moratorium and the slowdown that followed.

“The Port Commission immediately asked, ‘What can we do to help our tenants?’ ” he said. “We brought in a mind set of, ‘How can we help you?’ ”

The port froze fees and reduced its land rental rates by 30 percent through July 1.

As a result, Chiasson said the port gained tenants instead of losing them.

Still, Chiasson said “we’re hoping the future is bright, but we have not seen that yet.

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