New Baker Hughes Research and Technology Center in Brazil Demonstrates Next Phase in Network of Global Technology Solutions
HOUSTON, Oct. 7, 2011 /PRNewswire/ — Baker Hughes (NYSE: BHI) announced today the opening of a new research and technology center in Rio de Janeiro designed to enable the development of technologies and solutions to unlock the full potential of deep water and pre-salt reservoirs.
“Baker Hughes’ new research facility on the CENPES (Centro de Pesquisas Leopoldo Americo Miguez de Mello) campus will open up a new level of collaboration with our customers and Latin American universities. Together we will build a new generation of highly specialized wellbore construction tools and services to economically produce the pre-salt reservoirs in offshore Brazil,” said Andy O’Donnell, president of the Western Hemisphere for Baker Hughes. “The new Baker Hughes Rio Research and Technology Center in Brazil represents the next phase in the expansion of our global technology network and strengthens our capability to provide local solutions.”
The Brazil center is one of 10 major research and technology facilities globally situated in the U.S., U.K., Russia, Germany and Saudi Arabia. The centers focus on providing solutions to oil and gas challenges specifically related to applications engineering and geosciences. In addition, the facilities enable Baker Hughes to provide support for field testing of new products and regional customization of existing commercial products.
By the end of 2012, the Rio Research and Technology center is expected to create 45 new jobs and the company will continue to add to its workforce by recruiting regional scientists and engineers and other professionals to the center as new projects are initiated.
Baker Hughes is already partnering with the Federal University of Rio de Janeiro and Petrobras to consult on the design, construction and operation of a full-scale laboratory drilling simulator located near the university. Baker Hughes will reproduce field-drilling conditions in a controlled environment so that the drilling process can be monitored, characterized and improved.
Baker Hughes provides reservoir consulting, drilling, formation evaluation, completions, pressure pumping and production products and services to the worldwide oil and gas industry.
- New Baker Hughes Research and Technology Center in Brazil Demonstrates Next Phase in Network of Global Technology Solutions (prnewswire.com)
- Baker Hughes Acquires Equity Stake in Verdande Energy (prnewswire.com)
- Baker Hughes profit more than triples (marketwatch.com)
Ongoing Campaign Effort
last update: Apr 14, 2011
Proposed LNG liquefaction and Storage Facility
Liquified Natural Gas (LNG) is natural gas that has been chilled to liquid form, reducing it to one-six-hundredth of its original volume for transportation by ship to destinations not connected by pipeline.
The PNG LNG project aims to exploit gas resources of the PNG Southern Highlands and sell the resulting LNG (Liquified Natural Gas) on the open market, particularly to Asia. This will be the largest industrial/development project in PNG’s history – it is projected to completely transform the PNG economy. It is one of the largest, if not the largest, development project in the Pacific region, excluding Australia. The official economic impact survey commissioned by the project sponsors claims that it will double the size of the PNG’s Gross Domestic Product.
The project will draw on the gas resources of the Hides, Angore, Juha, Gobe, Moran and Utubu fields. It is expected to have a life-cycle of 30 years with production beginning in 2013. The US$15 billion project involves construction of:
- A gas pipeline running onshore from Juha to Hides, then to the coast near Kopi, then offshore to the LNG plant site.
- New onshore production facilities in the highlands, including a production facility at Juha and a conditioning plant at Hides where the condensate from the gas will be collected and transported by pipeline to Kutubu.
- A LNG processing and liquefaction plant near Port Moresby, plus a nearby export jetty and numerous marine offloading facilities.
Full construction in planned to commence early 2010 and first LNG sales are due early 2014. Long-term supplies have been secured to CPC Corporation in Taiwan, Osaka Gas Limited Company, Tokyo Electric Power Company Limited, and Unipec Asia Company Limited, a subsidiary of China Petroleum and Chemical Corporation. The project will have a capacity to produce 6.3 million metric tons of the fuel a year.
Current Status (Jun 10, 2010)
The final deal between the project sponsors and the PNG government was signed on 8 December 2009, the day of the Final Investment Deadline (FID). After completion of the financing arrangements in March 2010 the project moved into a full execution phase. The overall PNG LNG scheme is now at an early stage of a four-year construction period. At the current time design, pre-mobilisation and early site works are underway.
Approximately 60,000 landowners are estimated to be directly affected by the project. PNG law mandates that all investment deals include benefit sharing agreements between landowners, the government and the company. One week before the FID, hardly any landowner groups had signed benefit sharing agreements.
On December 15, 2009 the Italian export credit agency, SACE agreed to cover 900 million Euro for contracts to Saipem and Nuovo Pignone, which are financed by Banca Intesa and Unicredit. Thus SACE is financing the project through the project finance component.
On December 15, 2009, The Japan Bank for International Cooperation (JBIC) signed a loan agreement in the aggregate amount of up to 1.8 billion US dollars to be implemented in Papua New Guinea (PNG) with its project company, Papua New Guinea Liquefied Natural Gas Global Company LDC. The loan, provided in project financing is co-financed with a commercial bank syndicate (including Sumitomo Mitsui Banking Corporation, Mizuho Corporate Bank, Ltd. and The Bank of Tokyo-Mitsubishi UFJ, Ltd.) and overseas export credit agencies (including The Export-Import Bank of the United States, The Export-Import Bank of China, SACE S.P.A. in Italy, Export Finance and Insurance Corporation in Australia) and Nippon Export and Investment Insurance (NEXI).
On December 8, 2009, the Australian goverment agreed with a $US500 million loan. The loan is to be provided to the project sponsors through Australia’s Export Finance and Insurance Corporation (EFIC).
On December 8, 2009, the final deal between the project sponsors and the PNG government was signed, the day of the Final Investment Deadline (FID).
On December 4, 2009 the U.S. Ex-Im Bank’s approved the project and the provision of $US3 billion in financing subsidies to Exxon. Read more…
The project has four major sponsors: ExxonMobil through its subsidiary Esso Highlands (33.2%); the Australian companies Oil Search (29%) and Santos (13.5%); and, the combined s take of PNG state corporation Petromin Holdings Ltd (0.2%) and the Minerals Resources Development Corporation (2.8%).The final deal between the project sponsors and the PNG government was signed on 8 December 2009, the day of the Final Investment Deadline (FID).
In June 2009 Esso Highlands Ltd (a subsidiary of Exxon Mobil Corporation) awared the Eos Joint Venture (an unincorporated joint venture comprising WorleyParsons and Kellogg Brown & Root) an agreement covering Project Services for the PNG LNG Project. The agreement commenced in March 2009 and extends to the end of 2014. Read more.
The banks consultant, D´Appolonia, an Italian engineering consulting company, served as the Independent Environmental and Social Consultant (“IESC”) to the lenders.
HOUSTON, April 13, 2011 /PRNewswire-USNewswire/ — Jim Noe, Executive Director of the Shallow Water Energy Security Coalition, issued the following statement in response to approval of energy legislation by the House Natural Resources Committee:
“We are pleased that the House has taken this first step to approve the American Energy Initiative. H.R. 1229, H.R. 1230 and H.R. 1231 are a welcome effort to expand offshore energy production, lower energy prices and create jobs.
“In particular, we commend the adoption of the Flores amendment on H.R. 1229, which would provide a one-year extension to the hundreds of leases impacted by the drilling moratorium. While rigs are idled due to regulatory delay, Congress should prevent time from running out these leases. The Flores amendment allows leaseholders to make up for lost time.
“We hope that this House action will spur the Senate to consider companion energy legislation. A bipartisan consensus exists to put the Gulf of Mexico back to work. We have the resources and technology to make America less dependent on foreign oil. All we need is for Congress to supply the will – the will to drill.”
About the Shallow Water Energy Security Coalition
The Shallow Water Energy Security Coalition comprises a group of companies—Apache Corporation, Arena Offshore, Chevron, Delta Towing, Dynamic Offshore Resources, Energy XXI, Ensco, Hall-Houston Exploration, Hercules Offshore, Phoenix Exploration, Rowan Companies, Seahawk Drilling, W&T Offshore, and Walter Oil & Gas— that explore, develop and drill for natural gas and oil in the shallow waters of the Gulf of Mexico. The coalition was established to enhance the understanding of shallow-water operations as policymakers develop legislative and regulatory responses to recent events. Follow us on Twitter @ShallowWaterNRG
SOURCE Shallow Water Energy Security Coalition
( Original Article )
InterOil Executes Agreement With Samsung Heavy Industries and FLEX LNG to Construct a 2 mtpa Floating LNG Vessel
SINGAPORE and HOUSTON, April 11, 2011 /PRNewswire/ — InterOil Corporation (NYSE: IOC) (POMSoX: IOC) today announced that InterOil and Pacific LNG Operations Ltd., have executed agreements, conditional upon Flex shareholder approval and final FID, with Samsung Heavy Industries and FLEX LNG Ltd. (Oslo:FLNG) related to the construction and operation of a 2 million tonne per annum (mtpa) floating liquefied natural gas (LNG) processing vessel (FLNG). The FLNG project is intended to integrate with and augment proposed infrastructure to liquefy natural gas from the onshore Elk and Antelope gas fields in the Gulf Province of Papua New Guinea pursuant to preliminary arrangements with Energy World Corporation and to link with InterOil’s proposed condensate stripping plant (CSP) being pursued in joint venture with the Mitsui Group and to accelerate the intended monetization of the Elk and Antelope fields. Commencement of the FLNG vessel’s operations is targeted for mid 2014.
FLEX LNG has informed InterOil that it has already completed the generic Front-End Engineering and Design (FEED) in 2009. The project specific FEED is targeted to start in May 2011, with all parties working towards reaching a final investment decision (FID) before the end of 2011. The agreements represent a continuation of the over 12 month collaboration between Samsung Heavy Industries, FLEX LNG, InterOil, Pacific LNG and Liquid Niugini Gas Ltd. (LNGL), InterOil’s joint venture LNG project company with Pacific LNG, to work together to develop the first floating facility to produce LNG.
FLEX LNG and Samsung Heavy Industries will be responsible for the design, engineering, construction and commissioning of the FLNG vessel. FLEX LNG will also be joint operator of the FLNG vessel together with LNGL. Construction of the FLNG unit will be fully financed by FLEX LNG and Samsung Heavy Industries.
The FLNG vessel is expected to be moored alongside the proposed jetty located in the Gulf Province, which will be shared with InterOil’s proposed land-based LNG facilities, and have a production capacity of up to 2 million tons of LNG per annum and to process an estimated 2.25 trillion cubic feet of gas over a firm 25-year period. FLEX LNG will receive 14.5% of the revenue, less agreed deductions and premiums, from the sale of LNG from the FLNG vessel for an initial 15-year period. Thereafter, for the next 5 years FLEX LNG will receive 12.5% of the revenue and 10% of the revenue for the last 5-year period. During the 25 year term of the contract, LNGL will become a part owner of the FLNG vessel.
As a part of the arrangements, InterOil and Pacific LNG will receive options, exercisable no later than 15 days after Flex LNG shareholder approval of this equity transaction, to acquire 11,315,080 common shares of FLEX LNG at an average strike price of 4.5909 NOK. This is approximately a 12% premium to the average FLEX LNG share price during October 2010 when an initial non-binding agreement was executed between FLEX LNG, InterOil and Pacific LNG.
Additionally, upon the project reaching FID, InterOil and Pacific LNG will receive FLEX LNG shares at par value equivalent to 5% of FLEX LNG. An additional amount of shares equalling up to 15% ownership in FLEX LNG may be issued to InterOil and Pacific LNG for $0.01 per share in three 5% tranches during the period from FID until 9 months after FID.
The agreements signed with InterOil, Pacific LNG, LNGL and Samsung Heavy Industries are all conditional upon FLEX LNG’s shareholders approving the proposed equity transaction with InterOil and Pacific LNG and achieving a positive project FID. Such approval is targeted for April/May 2011 and FID by the end of 2011.
Commenting on the agreements, the Chairman of InterOil, Phil Mulacek stated: “InterOil is proud to be partners with Samsung Heavy Industries, FLEX LNG, and Pacific LNG in a proposed project utilizing a FLNG vessel to accelerate the commercialization of our natural gas resources in PNG. The confidence of Samsung, the largest Korean conglomerate, to be the undisputed leader in FLNG, with a full completion guarantee, solidified our participation. All stakeholders benefit from higher utilization of the core infrastructure and high quality gas assets required for the project. The additional time required to increase upstream capacity and integrate the proposed marine facility to accommodate the FLNG vessel is warranted by the increased scale of the entire project and the incorporation of additional respected industry partners. In less than one year, we have negotiated agreements, contingent on FID, to construct facilities for the processing and sale of 5 mtpa of LNG (4.5 Tcf of natural gas) in addition to our expanded CSP project.”
( Original Article )