FMC Technologies, Inc. announced today that it has signed a contract with BP for the manufacture and supply of subsea equipment to support the Mad Dog Phase 2 field development.
The Mad Dog Phase 2 field development is located near Green Canyon Block 825 of the Gulf of Mexico, 150 miles (240 kilometers) south of New Orleans in about 5,100 feet (1,550 meters) of water. Under the initial contract, FMC Technologies will supply subsea trees, manifolds, and jumper equipment.
“Mad Dog Phase 2 is the first project awarded under our global agreement with BP to provide technologies and services for their worldwide subsea development projects,” said Tore Halvorsen , FMC Technologies’ Senior Vice President, Subsea Technologies. “We have a long history of supporting BP’s global offshore technology requirements, and today’s announcement expands our support of their Gulf of Mexico projects.”
The world has finite hydrocarbon resources and conventional oil reserves are particularly in short supply. Furthermore, conventional oil resources from the Middle East are very much under threat of disruption as embargoes on Iranian oil exports come into full effect at the end of June 2012.
However, new reservoirs of oil are increasingly being discovered in deep waters and ultra deep waters across the world. These new discoveries are providing a respite to declining production from conventional sources of oil and gas, and reducing risks in upstream oil production from the Middle East. Visiongain calculated that capital expenditure in the subsea production & processing systems infrastructure will total $8.89bn in 2012.
Exploration and production companies are investing heavily in offshore development projects. Most offshore projects in water depths beyond 200-300 metres benefit from subsea production and processing systems to lift hydrocarbons to the surface. As a greater share of oil and gas is supplied from deeper water depths, investment in subsea production and processing systems will inevitably grow larger over the next ten years.
Subsea systems not only enable operating companies to optimize production from offshore fields, they also increase the total amount of recoverable hydrocarbons over the life of the well. For example, with pressure boosting systems, total oil recovery rates are significantly increased. Some deepwater oil and gas reservoirs would not have been fully exploited without the aid of subsea systems.
By the early 1970s the world had few commercial oil and gas facilities producing from deepwater reservoirs because challenges such as high temperature and high pressure were too restrictive. Over the years, however, more advanced multiphase pumps, subsea oil/gas/water/sand separation units and wellhead systems have evolved to overcome the difficulties, enabling companies to produce hydrocarbons from the most challenging environments.
Subsea production and processing systems are advancing further to enable companies to produce from very sensitive and harsh environments such as the Arctic and high temperature, high pressure (HTHP) reservoirs. Subsea systems will not be affected by surface ice formations unlike floating platforms and can provide more controlled production from HTHP wells. Therefore, subsea systems minimize environmental risks associated with production from the Arctic region and in deepwater offshore areas.
The Subsea Production & Processing Systems Market 2012-2022 report provides valuable insight into the future developments of this growing market and will benefit those already in the subsea production & processing market as well as those looking to enter this market.
- Successful final commissioning of Expro’s AX-S subsea well intervention innovation (mb50.wordpress.com)
- Enhanced recovery through subsea compression at Gullfaks (mb50.wordpress.com)
- McDermott Wins Siakap North – Petai Subsea Contract in Malaysia (mb50.wordpress.com)
- Happy Dragon Ships 8 Manifolds to Goliat Field Offshore Norway (mb50.wordpress.com)
- Eidesvik Orders Large Subsea Vessel from Kleven (Norway) (mb50.wordpress.com)
- GC Rieber Shipping Orders Subsea Vessel from Ulstein (Norway) (mb50.wordpress.com)
Aker Solutions has been awarded a contract by A/S Norske Shell, to deliver subsea connection systems for the Draugen field on the Norwegian continental shelf. Contract value is approximately NOK 105 million.
Scope of work includes the delivery of complete tie-in connection systems for production flowlines and umbilicals for the expansion of the Draugen field.
“Aker Solutions has supplied connection systems for the subsea installations on the Draugen field since 2002. We are pleased that we can continue to assist A/S Norske Shell to expand the field and increase the production with our solutions,” says Alan Brunnen, executive vice president of Aker Solutions’ subsea business area.
Management, engineering and procurement of the connection systems will be performed at Aker Solutions’ head office in Fornebu, Norway. Equipment deliveries will be made from 2012 to 2013.
The Draugen field is located in block 6407/9 in the Haltenbanken area of the Norwegian Sea, which is situated about 140 kilometres from Kristiansund, Norway, at a sea depth of 250 metres.
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- Aker Solutions to Design World’s Largest Spar Platform for Statoil (mb50.wordpress.com)
- Ghana: Aker Solutions Signs Well Service Contract with Tullow (mb50.wordpress.com)
- USA: Aker Solutions to Provide Umbilicals for Anadarko’s Lucius Development (mb50.wordpress.com)
The American Bureau of Shipping (ABS) has announced it will class the first-of-its-kind Arctic Containment System (ACS), which will serve all exploration activities in the Chukchi and Beaufort seas offshore Alaska. The ACS will be deployed in June 2012.
ABS explains that a modular oil containment system will be installed on the deck of the non self-propelled ice-strengthened barge following its conversion to a floating offshore installation The dedicated barge will remain unmanned and on standby until deployed. Then, assisted by a tugboat, its trained crew will be able to respond to an oil spill incident in the exploration areas in a matter of days.
Shell has plans to drill up to six exploration wells off the coast of Alaska, later this year and has contracted with Superior Energy, the operator of the ACS, for the containment system to be available during the summer drilling season. The containment system would be able to mitigate spillage in the time it takes to drill an intervention well.
The oil giant’s Arctic drilling plans have been facing strong opposition from environmental activists. Today, twenty Greenpeace activists boarded two icebreakers leased by Shell from Finland’s Arctia Offshore. Shell has leased the vessels to support its upcoming drilling operations offshore Alaska.
- USA: Shell’s Chukchi Sea Oil Spill Response Plan Approved (mb50.wordpress.com)
- BP, Shell to partake in arctic drilling inquiry, Telegraph says (mb50.wordpress.com)
In the last quarter of 2011 Cargotec secured contracts for MacGregor bulk handling systems for installation onboard four offshore support vessels (OSV) newbuildings belonging to two different owners; one in the UAE (two vessels) and the other in Spain (two vessels).
At the end of November, Grandweld Shipyards in the United Arab Emirates ordered MacGregor bulk handling systems for two anchor-handling tug/supply (AHTS) vessels, hull Nos 389 and 390. They will handle cement, barite and bentonite for their owner Halul Offshore Services Company, in Doha, Qatar. Equipment for both vessels is scheduled for delivery at the end of June 2012.
In December Cargotec received an order for MacGregor bulk handling systems to be installed on two PSVs (hull Nos 446 and 447) under construction at Astilleros Balenciaga S.A. in Spain, for North Star Shipping in Scotland, UK. The vessels will operate in the North Sea and will handle cement, barite and bentonite. The equipment is scheduled for delivery in June and November, 2012.
“For the owners, it was important that the vessels were fitted with simple and well proven bulk handling technology, with a solid track record,” says Pankaj Thakker, Cargotec Sales Manager, Marine Selfunloaders. “Each installation will feature dust-free operation and low power consumption, making these some of the most environmentally-friendly systems available today.”
Bulk handling systems are standard equipment for offshore support vessels, enabling them to perform their supply role. The main task of such a system is to receive cargo, store and discharge it. MacGregor can offer operators two main system types: one uses a more conventional method where the storage and discharge of cargo is carried out using pressured tanks; and the other uses the hopper and blow pump concept.
- Norway: STX OSV to Build 4 PSVs for Island Offshore (mb50.wordpress.com)
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- China: Sinopacific Group Delivers Ulstein Design OSV to Neptune Offshore (mb50.wordpress.com)
- USA: Hornbeck Plans to Build Sixteen New Generation Offshore Supply Vessels (mb50.wordpress.com)
- Hornbeck Offshore Pulls the Trigger on a $720M US-Flagged Shipbuilding Program (gcaptain.com)
- Norway: Island Offshore Charters Two Vessels to Schlumberger (mb50.wordpress.com)