Second Well Follows Guyane Oil Discovery

Northern announces that as anticipated by Shell France on June 23rd, The Stena Drillmax ICE drillship commenced operations on the GM-ES-2, the second well on the Guyane Maritime permit on Friday 6th July. GM-ES-2 follows up on the Zaedyus oil discovery in late 2011, which encountered 72 metres of net oil pay in two turbidite sand systems successfully proving that the Jubilee play is mirrored across the Atlantic from West Africa.

The potential of this well was indicated by the Chief Executive of Shell France, Patrick Romeo who stated that, “drilling should last three months and Shell hopes to discover a reserve of at least 300 million barrels of oil” as reported by Dow Jones Newswires. Also, Tullow’s Exploration Director, Angus McCoss was quoted in the New York Times as having said the field could be larger than Jubilee, with 1 billion barrels or more of recoverable oil.

The partner interests in offshore Guyane are:

Shell 45.0% and operator

Tullow 27.5%

Total 25.0%

Northpet Investment 2.5% (Northern owns a 50% equity interest in Northpet Investments)

Derek Musgrove, Managing Director of Northern stated:

“We are pleased to be following up on the highly successful Zaedyus discovery so quickly. Through this project shareholders may benefit from this potentially very high impact event without any great cost exposures. I look forward to updating shareholders on progress.”

In accordance with the AIM Rules – Guidance for Mining and Oil & Gas Companies, the information contained in this announcement has been reviewed and signed off by the Exploration and Technical Director of Northern, Mr. Graham Heard CGeol.

FGS, who has over 35 years experience as a petroleum geologist. He has compiled, read and approved the technical disclosure in this regulatory announcement. The technical disclosure in this announcement complies with the SPE/WPC standard.

Source

Stena Icemax Drillship Gets Assistance from Fairmount (South Africa)

Fairmount Marine’s multipurpose support vessel Fairmount Fuji has assisted drill ship Stena Icemax while making a stop-over at Cape Town. On request of the owner of Stena Icemax the Fairmount Fuji carried out several cargo runs from the port of Cape Town to the anchorage.

Stena Icemax was under way from the Far East to French Guiana and required to make a stop-over at Cape Town for crew change and replenishment. Stena Icemax is a 228 meters long new build drill ship designed for deep water operations in harsh environments.

Fairmount Fuji is a multipurpose support vessel with a spacious aft deck of 280 square meters and with towing capabilities. Directly after assisting Stena Icemax the Fairmount Fuji was prepared for her next assignment in West Africa region, where she will act as a accommodation and general support vessel for an offshore operator.

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USA: ION Unveils Calypso Seabed Acquisition System

ION Geophysical Corporation  today announced the launch of Calypso™, its next generation redeployable seabed acquisition system.

Leveraging ION’s industry-leading VectorSeis® digital sensors to deliver the same unrivaled broadband imaging, Calypso is designed to operate at twice the depth and to deliver twice the operational efficiency of its predecessor system, VectorSeis Ocean (VSO).

The seabed seismic market has grown over 250% in the last five years, with over $300 million in contracts awarded in the first quarter of 2012 alone. Prompting this tremendous growth is seabed seismic’s ability to deliver superior image quality and operate in areas of dense infrastructure. Yet, despite its increasing popularity, seabed seismic still represents a relatively small percentage of total marine seismic projects, largely due to historically high costs and long cycle times relative to towed streamer acquisition. ION’s new Calypso system has the potential to mitigate both barriers to wider adoption by doubling cable lengths and productivity while significantly expanding operating depths.

Since 2004, ION’s seabed acquisition systems have delivered the highest quality seismic data on numerous projects worldwide, including in the Gulf of Mexico, North Sea, Caspian Sea, Middle East, offshore Brazil and West Africa. ION’s next generation Calypso system leverages ION’s award-winning VectorSeis sensor to provide the same superior imaging as VSO, but with step-change improvements in efficiency, operating depths, and flexibility:

• Tilt-insensitive multicomponent (4C) VectorSeis sensors record broad bandwidth seismic data with superior vector fidelity, capturing richer frequency content at both the low- and high-frequency ends of the spectrum.
• Buoy-based recording eliminates the operational expense and complexity of dedicated recording vessel(s).
• An unlimited number of cables with twice the length (12-24 km) dramatically increases productivity and shortens cycle time.
• The newly designed rugged system excels in water depths from 5 to 2,000 meters, providing flexibility to work in the most challenging fields and conditions.

Tim Rigsby, Vice President of Seabed at ION, commented, “ION has been committed to expanding the adoption of full-wave seabed imaging since introducing our first ocean bottom cable system, VSO, in 2004. Our goal has been to provide our clients with the superior imaging benefits of ocean bottom cable systems, at a price point closer to that of towed streamer acquisition. Calypso is a step-change in that direction.”

To learn more about Calypso, and to view an interactive multimedia presentation on the new system, visit Interact with the Calypso System

ION Geophysical Corporation is a leading provider of geophysical technology, services, and solutions for the global oil & gas industry. ION’s offerings are designed to allow E&P operators to obtain higher resolution images of the subsurface to reduce the risk of exploration and reservoir development, and to enable seismic contractors to acquire geophysical data safely and efficiently.

The information included herein contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual results may vary fundamentally from those described in these forward-looking statements. All forward-looking statements reflect numerous assumptions and involve a number of risks and uncertainties. These risks and uncertainties include risk factors that are disclosed by ION from time to time in its filings with the Securities and Exchange Commission.

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McDermott Bags Two Offshore Contracts in USA and Gabon

McDermott International, Inc. announced that one of its subsidiaries has been awarded a fabrication contract for components of a deepwater platform in the Gulf of Mexico, by Heerema Marine Contractors Nederland BV.

McDermott will construct 16 tendon buoyancy modules (“TBMs”) for the deepwater project, which will be used during offshore installation of the platform, approximately 225 miles south of New Orleans in waters up to 5,185 feet deep.

“McDermott’s high quality fabrication procedures for deepwater projects meet the demanding customer specifications for delivery of structures,” said Stephen M. Johnson, Chairman, President and Chief Executive Officer of McDermott. “Additionally, our HSES practices are closely aligned with the stakeholders on the project team,” said Johnson.

McDermott will carry out procurement, fabrication and loadout of the TBM structures from its Morgan City facility in Louisiana. Consisting of an upper and lower module, each TBM is designed to be interchangeable as either an upper or a lower module. Fabrication work is expected to commence during the second quarter of 2012.

A McDermott subsidiary has also been awarded a design engineering and procurement management contract, by VAALCO Gabon Inc., for the Etame platform and a design engineering contract for a potential Southeast Etame / North Tchibala (SEENT) platform, both located offshore Gabon, West Africa.

“McDermott’s Houston-based engineering teams have a track record of designing structures for the West Africa market,” said Johnson. “Our early planning activities and knowledge of the technical issues that may arise during the design scope, coupled with our unique understanding of fabrication and installation constructability requirements, allowed us to develop a robust design proposal for VAALCO,” said Johnson.

The new oil and gas wellhead production platform(s) will be located in the Etame Marin block off the coast of Gabon and will be engineered to produce oil and gas.

VAALCO has requested McDermott’s engineering team to design a safe, reliable and predictable production facility that will minimize operational and maintenance issues. It is anticipated that engineering activities will be supported by a combination of technical and commercial personnel focused on identifying and specifying the materials and services necessary to help ensure project execution excellence.

Detailed engineering is already underway at the McDermott Houston engineering office.

The values of both these contract awards will be included in McDermott’s second quarter 2012 backlog.

Source

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USA: Nexen’s Kakuna Well Fails to Impress

Nexen Inc. today reported that drilling operations are complete on the Kakuna sub-salt exploration well on Green Canyon block 504 located approximately 180 miles southwest of New Orleans in deepwater Gulf of Mexico.

The well did not encounter commercial hydrocarbons, and is now in the process of being plugged and abandoned. Kakuna was drilled to a depth of 30,300 feet at a total cost of approximately $120 million, net to Nexen ($80 million after-tax).

Nexen is the operator of Kakuna with 72.5 %, while Statoil owns the remaining 27,5 %. Norway’s oil giant Statoil farmed into the Kakuna prospect in June 2011.

Nexen owns a broad inventory of exploration prospects in the Gulf of Mexico, including the sub-salt Miocene play in the central Gulf of Mexico and the Norphlet play surrounding our Appomattox discoveries.

The company’s 2012 exploration program includes approximately 15 offshore exploration and appraisal wells in the UK North Sea, West Africa and the Gulf of Mexico.

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Strong Demand for UDW Drillships Spurs Seadrill to Order One More from SHI (South Korea)

Seadrill continues to see strong demand for modern ultra-deepwater (UDW) drilling rigs driven by high oil prices and large deep-water discoveries and increased development drilling. Specific interest, mainly from operators in West Africa and the Americas, demonstrate a trend towards higher day rates and longer term contracts.

With yard costs at very attractive levels and Seadrill’s proven track record with respect to successful new build construction the Company today announced the order of a sixth drillship from Samsung Heavy Industries (SHI) with delivery in the second quarter of 2014. The expected total project cost is less than USD600 million, in line with the 5 units under construction and with delivery in 2013 and 2014. The yard contract was originally between a party related to Seadrill’s major shareholder Hemen Holding and Samsung, as part of a larger shipyard deal, but Seadrill has been given the right to take over the contract at original terms.

Seadrill’s current new build program now includes 17 units: 6 ultra deep-water drillships, 1 harsh environment semi submersible, 5 tender rigs and 5 jack ups, all to be delivered in the period from Q4 2012 to Q1 2015. In addition, Seadrill has received a fixed price option for a further ultra deep-water drillship. The six drillships under construction are of the same design and will have a hook load capability of 1,250 tons and a water depth capacity of up to 12,000 feet targeting operations in areas such as the Gulf of Mexico, Brazil and West and East Africa. Also, these units will be outfitted with seven ram configuration of the Blow out Preventer (BOP) stack and with storing and handling capacity for a second BOP.

CEO of Seadrill Alf Thorkildsen says:

“With the available capacity in 2013 and 2014 Seadrill is uniquely positioned among its peers to take advantage of strong demand for drilling services with high dayrates and longer charter contracts. We will continue to aggressively build Seadrill’s earnings and further expansion of the building program is expected in the months to come. Together, these developments provide for continued value creation and an increased dividend capacity.”

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Cyprus: Ocean Rig Receives LoA for its UDW Drillship

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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ENSCO Orders Drillship with Retractable Thrusters!?

By Rob Almeida On April 6, 2012

At first it looked like just another drillship order.

Samsung Heavy wins a $645 million order to build a DP3 drillship for ENSCO, however buried in the middle of the press release read:

New features on ENSCO DS-8 include retractable thrusters, enhanced safety and environmental features…

Wait…Retractable thrusters?!

I talked to ENSCO yesterday and they noted that this new feature was a Rolls-Royce design, and that by retracting the forward thrusters, it increased the efficiency of the vessel while in transit while also reducing the overall maintenance burden.

Most importantly however, this new feature will help to reduce down time.  At an average day rate of over a $500 thousand per day, any investment that can keep these rigs up and working longer is money well spent by the contractor and anyone who’s ever had to switch out a thruster knows that it’s not a snap of the fingers… it takes many costly hours and is, to be quite frank, a pain in the ass.

Besides having retractable thrusters, the ENSCO DS-8  has other unique features such as below-main-deck riser storage, triple fluid systems, offline conditioning capability and enhanced client and third-party facilities.

Storing upwards of 12,000 feet of 21″ heavy gauge steel riser on deck presents a significant vessel stability issue, not to mention all the associated drill pipe and casing.  Considering this rig may very well be destined for the arctic and the associated surface area of this pipe, this stability issue could be compounded significantly under ice-loading conditions.  Under these circumstances, storing the riser in a cargo hold below the main deck, is likely a smart move.

Consistent with the previous five Samsung ultra-deepwater drillships ordered since 2007, this new drillship is based on the proprietary Samsung GF12000 hull design measuring 755 feet in length and 125 feet in width. It will offer a payload in excess of 22,000 metric tons and a 1,250-ton hoisting system. The rig’s design and capabilities include numerous features that increase operating efficiency. Primary to these capabilities are enhanced and redundant offline tubular stand-building features and a 165-ton active heave compensating construction crane, allowing for the deployment of subsea production equipment without interference with ongoing drilling operations.

The rig, which will be initially outfitted for drilling in water depths of up to 10,000 feet, will be equipped with dynamic positioning in compliance with DPS-3 certification; six-5.5 megawatt thrusters for enhanced station-keeping; expanded drilling fluids capacity; a 15,000-psi subsea well control system with six rams, upgradable to seven rams and/or a second BOP stack; burner boom for well testing; and living quarters for up to 200 personnel.will be built to meet the demands of ultra-deepwater drilling in water depths of up to 12,000 feet and a total vertical drilling depth of 40,000 feet.

Ensco Chairman, President and CEO Dan Rabun said:

An ongoing trend of new deepwater oil and gas discoveries around the globe is creating a high demand for equipment capable of tapping those resources. Our track record of leading safety and deepwater performance increasingly makes us the driller of choice for operators working in complex offshore fields. Our high-grading strategy will ensure that we continue to be equipped to respond to rising customer demand.” The latest EnergyPoint industry survey rates Ensco first in total customer satisfaction among offshore drillers overall and specifically in safety, health and environment performance as well as in deepwater drilling.

This addition to our fleet is in keeping with our strategy of standardization, which streamlines construction, operations, inventory management, training, regulatory compliance, repairs and maintenance,” Mr. Rabun pointed out. “We are very pleased to continue our successful newbuild drillship program with Samsung.

This vessel will be the sixth Samsung DP3 drillship in the Ensco fleet, extending the benefits of Ensco’s fleet standardization strategy. The contract also includes options for two additional drillships of the same design and is scheduled for delivery in the third quarter of 2014.

Ensco’s three active DP3 drillships are currently contracted into 2016 in the U.S. Gulf of Mexico, Brazil and West Africa. A fourth, ENSCO DS-6, is undergoing pre-commissioning modifications in preparation for its first well assignment under a five-year contract with BP. ENSCO DS-7 is scheduled for delivery in the second half of 2013.

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