The U.S. Department of Energy has granted Pangea LNG Holdings, LLC, long-term, multi-contract authorization to export liquefied natural gas (LNG) to free trade agreement (FTA) nations from its South Texas LNG Project currently in development on Corpus Christi Bay.
Pangea LNG will be authorized to export up to 8 million metric tons per annum (mtpa) of LNG produced from domestic gas fields for a 25-year term commencing on the date of its first export. That amount is equal to 1.09 Bcf/day of natural gas.
Pangea LNG has also filed an application with DOE requesting authorization to export LNG to any country with which the U.S. does not have a free trade agreement in effect. That application, which was filed in December, is pending.
“Approval by the US DOE is a positive step forward for this project, which represents a significant investment in the development of the LNG market in the U.S.,” said John Godbold, Pangea LNG project director. “Exporting LNG will help stabilize U.S. natural gas prices, grow and sustain drilling and production jobs, and stimulate additional investment in developing the country’s gas reserves.”
DOE approval of FTA authorization is part of the regulatory process necessary to develop Pangea LNG’s new LNG export terminal on a 550-acre site. The site is located on the 45-foot deep La Quinta Ship Channel which is part of the Port of Corpus Christi, the sixth busiest U.S. seaport in terms of tonnage.
The South Texas LNG Project is subject to federal, state and local regulatory approvals with the Federal Energy Regulatory Commission (FERC) acting as the lead federal agency. Pangea will begin the FERC pre-filing process by the second quarter of 2013 and expects the project to be in operation by at least 2018.
FTA countries covered by the DOE authorization include Republic of Korea, Australia, Bahrain, Canada, Chile, Colombia, Dominican Republic, El Salvador, Guatemala, Honduras, Jordan, Mexico, Morocco, Nicaragua, Oman, Panama, Peru and Singapore.
Pangea LNG B.V. is a holding company with two major LNG export projects under development – the South Texas LNG Export Project on the Texas Gulf Coast and the Tamar Project in the Eastern Mediterranean. Pangea LNG is a developer of liquefaction projects which are designed to accelerate and support the monetization of gas reserves.
Cal Dive International, Inc. announced that it has recently commenced a two-year charter of the DP saturation diving vessel Kestrel to a major contractor in Mexico to perform repair and maintenance work for Pemex.
The charter started in mid-October and has a fixed term of two years with an additional one-year option. The charter is expected to result in EBITDA of approximately $10 million per year during the two-year charter term. The vessel is expected to generate approximately break-even EBITDA in 2012.
In addition, Cal Dive has been awarded three saturation diving contracts in Australia. Two of the projects will utilize one of Cal Dive’s portable saturation diving systems while the third contract will be performed from a third party vessel utilizing a built in saturation diving system. These three contracts are expected to generate total revenue of approximately $20 million during 2013 and the first project is expected to commence in the first quarter 2013.
Quinn Hébert, President and Chief Executive Officer of Cal Dive, stated, “We are pleased to announce the saturation diving contracts in Australia and the charter of the Kestrel in Mexico. Both awards demonstrate the continued execution of our strategy to geographically diversify outside the U.S. Gulf of Mexico. The charter of the Kestrel is also consistent with our strategy to commit certain assets to long-term contracts that improve visibility. The charter is of additional significance due to the EBITDA improvement it will generate in 2013.”
Cal Dive International, Inc., headquartered in Houston, Texas, is a marine contractor that provides an integrated offshore construction solution to its customers, including manned diving, pipelay and pipe burial, platform installation and platform salvage services to the offshore oil and natural gas industry on the Gulf of Mexico OCS, Northeastern U.S., Latin America, Southeast Asia, China, Australia, the Middle East, West Africa and the Mediterranean, with a diversified fleet of surface and saturation diving support vessels and construction barges.
Deep Down, Inc., an oilfield services company specializing in complex deepwater and ultra-deepwater oil production distribution system support services has been successful in its proposal to a major international umbilical manufacturer for the manufacture, installation and commissioning of a portable umbilical carousel.
The project has an estimated value of $4 million in revenue to Deep Down and is scheduled for delivery in the second quarter of 2013, with procurement of long lead items commencing this month.
Ron Smith, Chief Executive Officer of Deep Down, Inc. stated, “We are delighted with this opportunity. We currently have outstanding quotes in excess of $30 million for our carousel design and this project further recognizes that we are a leading provider of innovative umbilical solutions to the oil and gas industry.”
- Houston, Texas: Deep Down Receives Multiple Services Contracts (mb50.wordpress.com)
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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Pacific Drilling S.A., a fast growing company dedicated to becoming the preferred ultra-deepwater drilling contractor, has received a letter of award for the Pacific Sharav drillship, revealed the company’s CEO Chris Becket.
CEO Chris Beckett commented on the increasing demand for ultra-deepwater units: “During the early part of 2012, demand for ultra-deepwater drillships continued to strengthen, as demonstrated by the acceleration in multi-year inquiries and contract awards with increasingly higher dayrates. We expect to see market demand exceed supply well into 2014.”
He added: “In this favorable market context, the Pacific Sharav received a letter of award from a major oil company for a long term commitment. We expect to provide more details on this commitment in the coming weeks. These positive market dynamics supported our decision to order a seventh drillship, scheduled for delivery in May 2014.”
Construction of the Pacific Sharav started in March 2012 at Samsung Heavy Industries in South Korea. Delivery of the rig is expected in September 2013. The vessel, of Samsung 12000 design, will be capable of operating in 12,000 ft water depth and equipped for 40,000 ft drilling depth. The ship will be able to accommodate a crew of 200.
Pacific Drilling’s fleet of seven ultra-deepwater drillships will, once completed, represent one of the youngest and most technologically advanced fleets in the world. The company currently operates four recently delivered drillships and has two additional drillships under construction and one on order at Samsung.
During the first quarter of 2012, the company invested $102 million in the construction of the fleet, including the initial payment for its seventh drillship.
“We estimate the remaining capital expenditures for our committed drillships at $1.6 billion,” read the company’s statement.
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The next-generation simulator from Kongsberg Maritime will be used to provide integrated, real-time training for Superior’s offshore marine personnel at its new facility in Anchorage, Alaska. Under the terms of the contract, signed September 2011, Kongsberg Maritime supplied Superior Energy Marine Technical Services with a full mission trainer in support of critical operations including ship bridge maneuvering and navigation, anchor handling, ROV operations, crane operations, process control, containment, and controlled pumping and flaring of hydrocarbons.
The system supports the full spectrum of offshore Simultaneous Operations (SIMOPS) activities in support of developing best practices for both surface and sub-sea marine practices – all conducted in real time and in the safety of a simulated environment. The simulator features two full offshore service vessel bridges, with 360 degree field of view, an offshore crane simulator, supplied by KONGSBERG company, GlobalSim, a DeepWorks ROV simulator, supplied to KONGSBERG by Fugro Subsea Services Ltd and a separate Process Simulator, for operator training and control system checkout in addition to multiphase flow simulation, supplied by Kongsberg Oil & Gas Technologies.
Superior’s working relationship with Shell Offshore was a primary motivator in establishing this state-of-the-art facility. Superior is committed to achieving a safe work environment and these core objectives were incorporated in the system design: “At Superior Energy Services, we believe in ensuring our people are as prepared and properly trained as possible. It makes sense from a safety perspective, from an environmental perspective and from a business perspective – it is simply the right thing to do,” said Captain Scott Powell.
“Partnering with Kongsberg Maritime provided a depth of engineering capability that allowed us to mirror a physical model-based simulation solution. This is the closest we can come to creating realistic scenarios without facing these circumstances first hand. Our people will be the best prepared in the industry and will have full confidence in the critical skills they will learn with this state-of-the-art simulator. This multi-team training capability will have a net positive effect on our preparedness and our commitment to health, safety and the environment,” continues Powell.
The KONGSBERG Offshore Vessel Simulator allows companies to train employees for the highly technical and often hazardous operations they will encounter in the offshore environment. Kongsberg Maritime simulators are designed to provide realistic scenarios for a wide variety of environmental applications.
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Ocean Rig UDW Inc., a global provider of offshore deepwater drilling services, headquartered in Cyprus, today announced that it has received a Letter of Award for its ultra deepwater drillship “Ocean Rig Olympia”, from a major oil company.
The Letter of Award is for a three- year contract for drilling offshore West Africa, with an estimated backlog of approximately $652 million. The Letter of Award is subject to completion of definitive documentation and receipt of regulatory approvals. The contract is expected to commence in direct continuation of the Ocean Rig Olympia’s existing contract in West Africa. The customer would have the option to extend the contract for two periods of one year each, with the first option exercisable within one year from the commencement date under the drilling contract, and the second option exercisable within one year after the date of exercise of the first option.
With this latest fixture, Ocean Rig no longer has any rigs available in 2012.
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Subsea 7 S.A. announced the award of a SURF contract valued at approximately $100 million from Suncor Energy on the Terra Nova Field, situated 350km south east of St John’s, Newfoundland, offshore Canada.
The contract scope includes the management, engineering and installation of nine 300 metre replacement risers and associated flowlines, jumpers and tie-ins.
Engineering and project management will commence immediately at Subsea 7’s St John’s office, with offshore operations due to commence in summer 2012 utilising Subsea 7’s world-class construction and diving vessels.
Phil Simons, Subsea 7’s Vice President Canada, Mediterranean & Russia said, “As a leading seabed-to-surface engineering, offshore construction and services company we are delighted to have won this prestigious contract which builds on our expertise and strong track record and further supports the development of our St. John’s office.”
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- Norway: Statoil Orders Subsea Structures for Asgard (mb50.wordpress.com)
- Australia: Heerema Wins Subsea Installation Contract for Ichthys Project (mb50.wordpress.com)
- Norway: Technip to Install Subsea Compression System on Asgard (mb50.wordpress.com)