Eni Awarded 3 New Exploration & Production Blocks Offshore Mexico

Eni has been granted 3 of 10 offshore blocks awarded by Mexico’s National Hydrocarbon Commission (CNH) in the Sureste Basin, in the Gulf of Mexico. This result boosts Eni’s presence in a market that only opened up to foreign investments in 2014, in line with the country’s Energy Reform, and which has huge growth potential. The award is the outcome of the first bids called under “Ronda 2”, in which CNH offered blocks located in water depth ranging from 20 to 500 meters in the Sureste and Tampico-Misantla Basins.

1Eni messico CS firma 516Eni is the only international company to get 3 blocks out to the 10 assigned by Mexico’s CNH

Eni will be Operator of Block 10 (Eni 100%), Block 7 (Eni 45%, Cairn 30%, Citla 25%) and Block 14 (Eni 60%, Citla 40%), with all of the licenses to be managed through Eni Mexico. The contract awards, which will be production sharing agreements, are subject to final approval by the authorities.

Eni already holds a 100% stake in Area 1 in the Sureste Basin, where the exploration and appraisal campaign is successfully ongoing and a fast-track plan for the development of the Amoca field is being finalized, with plans for an early production phase. The new blocks are joined to Area 1 and, in the case of a successful exploration campaign, will allow Eni to build up a new core area of considerable size with significant operational synergies in the Country.

Eni has been present in Mexico since 2006, and it established its wholly-owned subsidiary Eni Mexico in 2015.

OSI Delivers Construction Phase of ATISA Network

2 1Atisa OSIOcean Specialists, Inc. (OSI) announces that it has completed its full scope of program work related to the ATISA submarine cable project. OSI has been engaged with DOCOMO PACIFIC since the earliest days of the project, helping shape the commercial and technical foundations of the program, with a continuing technical management role that extended through manufacturing, installation, and commissioning. The ATISA network was installed by NEC.

2 2OSI CableshipATISA brings much-needed capacity and redundancy to the region, with additional fiber optic connectivity to the islands of Saipan, Rota, and Tinian with high-capacity links to Guam. “DOCOMO PACIFIC and OSI have designed and delivered the ATISA network with service restoration and robust network capabilities fully in mind. OSI has appreciated the focus and drive with which the DOCOMO PACIFIC team has led the project; we are certain the network will bring significant benefit to the Marianas,” stated Tony Mosley, OSI’s Director of Asia Pacific.

“OSI’s team has worked side-by-side with us from Day One. Their suggestions and ability to balance the commercial, technical, and delivery aspects of the program were invaluable,” stated Jonathan Kriegel, President and Chief Executive Officer of DOCOMO PACIFIC.

OSI delivers network connectivity globally for telecom, energy, and scientific industries, with current projects spanning all regions of the world. Network development portfolio services range from market studies, partner identification, technology assessment, vendor selection and full network management of installation and commissioning. “As it relates to Asia Pacific, which is always a dynamic and important region, we are particularly proud of our capabilities; we have made a strong commitment to the region in terms of resourcing and staff, and it shows in our ability to meet the needs of this market,” said Tom Soja, Vice President of OSI.

Statoil: Green Light for Njord and Bauge

3 1StatoilNjordThe Njord A platform. (Photo: Thomas Sola/Statoil)

The plans for development and operation (PDO) of Njord and Bauge in the Norwegian Sea have now been approved by the authorities.

The Njord A platform and the Njord Bravo floating storage and offloading vessel (FSO) will be upgraded to recover the remaining resources in the Njord and Hyme fields, whereas Bauge is a new field development to be tied in to the Njord A platform.

“We are pleased that the authorities have now approved the plans for Njord and Bauge, two important fields on the Norwegian continental shelf. The investments, totaling NOK 20 billion, will trigger high activities and spin-offs for the Norwegian society and Norwegian supply industry,” says Torger Rød, Statoil’s head of project development in Statoil.

The remaining resources on the Njord and Hyme field total 175 million barrels of oil equivalent. This corresponds to the reserves produced from the Njord field since first oil in in 1997. In addition, 73 million barrels of oil equivalent will be produced from Bauge.

On behalf of the partnerships in the Njord, Hyme and Bauge licenses plans for the development and operation of the Njord and Bauge fields were submitted to Norwegian authorities on 27 March this year.

The original PDO for the Njord field was submitted more than 20 years ago. The field will now produce for another twenty years, and the partnership has decided to upgrade and reuse both the Njord A platform and the Njord Bravo FSO.

3 2Statoil njord bauge 1 1Bauge field illustration: Credit: Statoil

The Bauge field development concept includes one subsea template, two oil producers and one water inject.

“Kværner at Stord has been awarded the contract for upgrading the platform and work facilitating the tie-in of Bauge and potential future third-party tie-ins,” says Rød.

“Njord remaining on stream until 2040 is important for our specialist communities in Kristiansund and Stjørdal, as well as the mid-Norway supply industry. An upgraded field center and new infrastructure at Njord also allows for the development of other fields in the area,” says Siri Espedal Kindem, senior vice president, Operations North, Development and Production Norway.

Next year the Njord partners will award the contract for upgrading the Njord Bravo FSO. First oil is scheduled for the end of 2020.

Facts About Njord – Upgrading of Existing Platform

First oil in 1997 Njord was on stream from 1997-2016, and 54 wells were drilled
10 new production wells are planned on the field
In 2016 the Njord A platform and the Njord Bravo FSO were towed ashore, to Stord and Kristansund, respectively
Reserves: 175 million oil equivalent
Capital expenditures: NOK 15.7 billion
Partners: Statoil (operator) 20%, Engie E&P Norge AS 20%, DEA Norge AS 50%, Faroe Petroleum 7.5% and VNG Norge AS 2.5%.

Facts Bauge – New Field

The discovery is located some 16 kilometers north-east of the selected tie-in platform, Njord A
The development concept includes one subsea template, two oil producers, one water injector
Reserves: 73 million oil equivalent
Capital expenditures: NOK 4.1 billion

Partners: Statoil (operator) 35%, ENGIE E&P Norge AS 10%, Point Resources AS 17.5%, DEA Norge AS 27.5%, Faroe Petroleum Norge AS 7.5%, VNG Norge AS 2.5%

BP and Reliance Industries Bringing New Gas Production to India

4 1bp logo copy 34 2reliance industries logoReliance Industries Limited (RIL) and BP have announced that they are moving forward to develop already-discovered deepwater gas fields, bringing new gas production for India. The two companies have agreed to deepen and expand their partnership to work jointly across a wide range of areas throughout India’s energy sector.

‘R-Series’ deep water gas fields

RIL and BP announced that they will award contracts to progress development of the ‘R-Series’ deep water gas fields in Block KGD6 off the east coast of India. The R-series (D34) project is a dry gas development in water-depths of more than 2,000 meters, approximately 70 kilometers offshore. The R-series fields will be developed as a subsea tieback to the existing control and riser platform off Block KGD6. The project is expected to produce up to 12 million cubic meters (425 million cubic feet) of gas a day, coming on stream in 2020.

This is the first of three planned projects in Block KGD6 that are expected to be developed in an integrated manner, producing from about 3 trillion cubic feet of discovered gas resources. RIL and BP plan to submit development plans for the next two projects for Government approval before the end of 2017. Development of the three projects, with total investment of c. INR 40,000 crore (US$6 billion), is expected to bring a total c. 30-35 million cubic meters (1 billion cubic feet) of gas a day new domestic gas production onstream, phased over 2020-2022.

Mukesh Ambani, Chairman and Managing Director of RIL, said: “We are delighted to progress these developments, which will provide India with much needed indigenous energy and support the Prime Minister’s call for import substitution and the development of a gas-based economy. The solid relationship between our two companies is a great example of what can be achieved while working together at scale.”

Speaking in New Delhi today, Bob Dudley, BP Group Chief Executive, welcomed the investment: “This is an important step forward for BP in India. Working closely together, Reliance and BP are now able to develop these major deep water gas resources offshore India efficiently and economically. It is testament to our commitment to working in partnership with Reliance and with the Government to produce more energy in India, for India”.

India today consumes over 5 billion cubic feet a day of natural gas and aspires to double gas consumption by 2022. Gas production from the integrated development is expected to help reduce India’s import dependence and amount to over 10% of the country’s projected gas demand in 2022; benefiting India and domestic consumers at large.

Execution of the R-Series and following projects will require deployment of advanced skills, processes and technologies through the combined partnership of RIL and BP to develop and produce gas from these ultra-deep reservoirs.

The implementation of other two projects in Block KGD6 is subject to applicable regulatory and Government approvals.

Expanding partnership

RIL and BP will expand their existing partnership for strategic cooperation on new opportunities across India’s energy sector. Under the agreement the two companies will jointly explore options to develop differentiated fuels, mobility and advanced low carbon energy businesses in India, as India transitions to a low-carbon world.

The companies expect to collaborate, in addition to the conventional transportation and aviation fuels retailing, on unconventional mobility solutions, addressing electrification, digitization and disruptive mobility trends. Together, these collaborations will seek to address the mobility needs of urban, rural/farm, industrial/commercial, and highway consumers in India, applying the leading capabilities of both partners.

Mukesh Ambani commented: “This strategic partnership not only strengthens the relationship between two global energy leaders, but is also in line with and supports the forward-looking policies and vision of the Government of India.”

Bob Dudley added: “India’s demand for both energy and mobility is growing and evolving rapidly. This presents many opportunities for BP and Reliance to build on our existing strong relationship in upstream and expand our partnership further downstream. Combining skills and experience from both our companies, we expect to cooperate on mobility and advanced low carbon solutions and jointly explore other opportunities throughout India’s energy sector.

India is a rapidly growing market with a population of 1.3 billion people, consuming around 4 million barrels a day of oil products and with demand for fuels expected to grow by 5-7% per year over the next decade. BP and RIL are committed to being one of India’s preferred energy partners now and in the future.

Cairn Energy Secures New Licenses in Mexico Bid Round

5CairnlogoCairn announces it has secured interests in two licenses in the Mexico offshore bid round.

The licenses (one operated and one non-operated, covering ~1,100km2) are located in the Gulf of Mexico in the shallow water Sureste basin in water depths of 100-500 meters and ~50km offshore:

  • Block 7: ENI (45% operator), Cairn (30%), Citla (25%)
  • Block 9: Cairn (65% operator), Citla (35%)

Multiple-attractive prospects in a variety of play types have been identified within this highly prolific, proven hydrocarbon province which has recently opened to international oil companies. The Mexican Gulf region is significantly under-explored compared to the nearby analogous United States Gulf of Mexico.

The licenses were secured by Capricorn Energy Limited a wholly owned subsidiary of Cairn Energy PLC with the Production Sharing Contracts scheduled to be signed later this year with the Government of Mexico. The contract awards are subject to the final approval of the authorities. Cairn anticipates exploration drilling to commence in the 2019-2020 period on both blocks.

Cairn Energy CEO, Simon Thomson, said:

"We are delighted with these awards which we believe provide an exciting opportunity to build a strategic portfolio over time in this highly prolific yet under-explored region.

As we build on the success of discoveries in Senegal it is important to access new acreage to provide exploration drilling opportunities in the future.

Cairn and its partners have identified and secured our favored blocks with multiple stand-alone prospects and numerous follow-on tie-back opportunities based on 3D seismic data.

We are partnered with ENI, an experienced explorer and operator in Mexico, as well as Citla Energy, a Mexican focused, exploration company and look forward to working with our new partners and the Government of Mexico to deliver the work program in the coming years."

ExxonMobil Makes Final Investment Decision to Proceed with Liza Oil Development in Guyana

6Guyana june 2017 updated project map articleExxon Mobil Corporation (NYSE:XOM) says it has made a final investment decision to proceed with the first phase of development for the Liza field, one of the largest oil discoveries of the past decade, located offshore Guyana.

The company also announced positive results from the Liza-4 well, which encountered more than 197 feet (60 meters) of high-quality, oil-bearing sandstone reservoirs, which will underpin a potential Liza Phase 2 development. Gross recoverable resources for the Stabroek block are now estimated at 2 billion to 2.5 billion oil-equivalent barrels, which includes Liza and other successful exploration wells on Liza Deep, Payara and Snoek.

The Liza Phase 1 development includes a subsea production system and a floating production, storage and offloading (FPSO) vessel designed to produce up to 120,000 barrels of oil per day. Production is expected to begin by 2020, less than five years after discovery of the field. Phase 1 is expected to cost just over $4.4 billion, which includes a lease capitalization cost of approximately $1.2 billion for the FPSO facility, and will develop approximately 450 million barrels of oil.

“We’re excited about the tremendous potential of the Liza field and accelerating first production through a phased development in this lower cost environment,” said Liam Mallon, president, ExxonMobil Development Company. “We will work closely with the government, our co-venturers and the Guyanese people in developing this world-class resource that will have long-term and meaningful benefits for the country and its citizens.”

The Liza Phase 1 development can provide significant benefits to Guyana, including jobs during installation and operations, workforce training, local supplier development and government revenues to fund infrastructure, social programs and services.

The development received regulatory approval from the government of Guyana.

The Liza field is approximately 190 kilometers offshore in water depths of 1,500 to 1,900 meters. Four drill centers are envisioned with a total of 17 wells, including eight production wells, six water injection wells and three gas injection wells.

The Liza field is part of the Stabroek Block, which measures 6.6 million acres, or 26,800 square kilometers. Esso Exploration and Production Guyana Limited is operator and holds a 45 percent interest in the block.

Hess Guyana Exploration Ltd. holds a 30 percent interest and CNOOC Nexen Petroleum Guyana Limited holds 25 percent.

Esso Exploration and Production Guyana Limited is continuing exploration activities and operates three blocks offshore Guyana – Stabroek, Canje and Kaieteur. Drilling of the Payara-2 well on the Stabroek block is expected to commence in late June and will also test a deeper prospect underlying the Payara oil discovery.

Expro Secures $10million Well Services Contract Extension from Apache North Sea

7Expro Apache UK Forties Alpha 02Expro has secured a $10million well services contract extension with Apache North Sea.

The contract covers a range of well services including slickline, cased hole services and pumping services, as well as support in delivering coiled tubing services. This utilizes a multi-skilled crew covering the UK North Sea Forties platforms, ensuring a consistently high approach to safety and service quality.

Expro has worked with Apache since 2004 and after securing the initial well services contract in 2009, has now been awarded two further one-year extensions (to 2019).

Commenting on the major award, UK Area Manager, Gary Sims, said:

“As one of the world’s largest well intervention companies, we remain committed to maintaining our strong working relationship with Apache.

“Our 40 years of experience mean that we are ideally placed to support this comprehensive range of intervention related services, providing a safe and cost-effective approach to maximize incremental production from mature assets.

“Expro can also provide additional cased hole services on demand, avoiding costly downtime, ensuring our customers receive the fast response times they need in an increasingly cost sensitive market place.”

Claxton Awarded Casing Cutting and Recovery Combined Services Contract with Southern North Sea Operator

8Claxton DecommissioningClaxton, a leading supplier of engineering and services for shallow-water, jackup-depth markets in subsea services company Acteon, has been awarded a contract to riglessly casing cut and recover a total of seven wells in the Southern North Sea across two of the operator’s, normally unmanned, platforms, along with an additional subsea suspended well at one of the locations.

Work is scheduled to commence in July at the first location, located around 180km off the Yorkshire coast, with work on the second platform, in the Dowsing Fault Zone of the Sothern North Sea, commencing shortly afterwards; the combined project completion is estimated at just under 100 days.

The first NUI scope of work includes the removal of Christmas trees in preparation for the removal of the production tubing, wellhead preparation in readiness to also undertake the sub-mudline multi conductor/ casing cutting and recovery, and severance and conductor recovery of the suspended subsea well. Due to limited deck space, work will be conducted as a combined operation using a jack up lift barge ‘JULB’ and without the use of a drilling rig.

Laura Claxton, Managing Director, Claxton, said: “Our global experience allows us to provide the most comprehensive decommissioning package for all of our clients, but always having an eye on providing the most cost-effective solution for abrasive severance, cut verification and recovery.

“We will be using a 150te hydraulic proving jack package, Claxton Double Drilling Units (DDUs) for drilling and pinning and rapid cut bandsaws for cutting the combined multi strings. Marine growth stripping and removal using our purpose designed tooling will also be delivered, along with multi-string severance using our proprietary abrasive water jet cutting system SABRETM.”

The scope of work on the second platform includes Christmas tree and tubing removal, supply of blowout preventer (BoP) equipment, and the use of coiled tubing for cement squeezing operations. Tubing and conductor severance and recovery will be performed using Claxton’s own SABRETM abrasive cutting system - 10ft below seabed. The limited deck space on the platform deck also means that Claxton has developed a bespoke, all-purpose work deck.

Laura Claxton continued: “As part of the provided solution our equipment is unique and can again offer the operator real savings. Our bottom hole anchor and catch tool system for example, allows recovery of the conductor stump and conductor during the surface recovery stage reducing this to a single operation and removing the need for fishing tools. “We have also provided an engineered and aligned solution to reduce the number of slewing operations required by the JULB crane with a revision to our existing tubing laydown frame by incorporating a traveling bogie system. The frame and bogie eliminates the need for the crane to slew from the well centre while still allowing tubing to be laid out on deck. This saves valuable time on a project.”

Well abandonment is just one of the many services Claxton can offer to reduce the cost of your decommissioning project. Learn more about Claxton’s decommissioning services.

Aquaterra Energy Wins Multi-Million Pound North Sea Abandonment Contract

Aquaterra Energy, a leading global offshore engineering solutions provider, has won a major contract to supply subsea high pressure riser (HPR) equipment and services for a subsea abandonment project in the central North Sea.

The multi-million pound deal will see Aquaterra facilitate the abandonment of ten subsea wells via deployment of a subsea HPR system from a jack-up rig. The scope of work could be extended to include two further subsea wells bringing the total number of abandonments to 12.

Riser analysis was completed in-house by Aquaterra and validated by Bureau Veritas. It has confirmed a 50-year return storm operating envelope after HPR and rig optimisations were implemented. This has simplified the project operationally and reduced costs to the operator overall.

Aquaterra’s Initiation Engineering or ‘Well Start’ specialism has been implemented on the project to deliver a one-stop shop for extensive expertise to optimise well activity by taking responsibility for the entire first phase of the well. This approach minimises third party interfaces across a client’s project and addresses supply and equipment requirements, before the introduction of a blowout preventer. It can also mitigate risk and cut down on costly logistics, capex/opex, the number of crew involved and therefore, helicopter and accommodation needs.

9Aquaterra image 1George Morrison is managing director of Aquaterra Energy and creator of the Well Start specialism

George Morrison, managing director of Aquaterra Energy, said: “Aquaterra has built a successful track record of jack-up and subsea high pressure riser operations over recent years using similar systems. The use of jack-ups can potentially mitigate the heavy loading implications and weather constraints often associated with semi-submersibles in shallow water and thus, extend the operating envelope and productive time through a reduction in waiting on weather.”

With global rates for semi-submersibles averaging around USD 250,000 per day in 2016, day rate rental charges for jack-ups in Europe and Asia remain considerably cheaper.

Morrison added: “A change in the default mindset is needed to consider jack-up drilling units equipped with a HPR for shallow water subsea drilling, completion, intervention and abandonment activities as they can significantly reduce risk and lower operational costs when compared to a semi-submersible completing the same operation.

“Our project history and ‘Well Start’ service has shown that we are more than just an equipment provider but are a trusted turnkey solutions company. We can manage the risk and interfaces associated with jack-up subsea conversion packages to ensure it is safely and efficiently carried out. The cost savings, technical benefits and greater operational up time that this translates to, particularly during these challenging times, is key.”

The project is expected to be completed by Q4 2017.

Industry Project on Standardizing Subsea Processing Boosts up to Phase 2

10DNV CLOSEUP LAPTOPSubsea processing offers great potential for the oil and gas sector, but is also a relatively young field of technology, causing costly and inefficient tailor-made solutions. The DNV GL-led joint industry project (JIP) on standardizing subsea processing aims to reduce cost in a lifetime perspective. Initially focusing on subsea pumping, the partners in Phase 1 have now concluded the functional description of subsea pumping, while Phase 2 will deliver standardized guidelines. With all the four leading system suppliers on board, new operators are still welcome to join the project.

According to DNV GL’s seventh annual benchmark study, Short-term agility, long-term resilience, subsea technology is the highest-ranked area globally for conducting R&D among emerging technologies in 2017. In addition, standardization efforts are on the rise to remove complexities, with two-thirds of respondents saying their organization will seek greater standardization of tools and processes in 2017.

Although subsea processing is a target area for innovation, operational experience has also grown in recent years, with significant developments made by, among others, Total, Petrobras, Shell and Statoil. However, the lack of standardization which is driving costs up is still seen to make subsea processing less competitive than alternative solutions.

Kristin Nergaard Berg, JIP project manager, DNV GL – Oil & Gas, says: “Subsea standardization offers tremendous benefits. It allows flexibility for tailor-made facilities at a system level through standard functional descriptions and specifications, while also increasing predictability in the value chain. This will not only lower transaction costs and accelerate implementation for all parties, but also allow freedom to innovate and employ new technology.”

The kick-off for Phase 2 of the Subsea Processing JIP was recently held at DNV GL’s headquarters at Høvik, Norway. The JIP includes system suppliers Aker Solutions, GE Oil & Gas, OneSubsea and TechnipFMC and operators Shell, Statoil and Woodside. Phase 2 is expected to lead to a guideline and eventually a recommended practice for subsea pumping systems.

Building on the concluded functional description from Phase 1, the JIP will continue by developing system level requirements and design classes, as well as harmonized work processes and design standards.

Phase 2 activities are related to:

  • Standards, functional requirements and specifications
  • System design
  • Pump modules and pressure-containing equipment
  • Control system and instrumentation
  • Power system
  • Materials and welding
  • Qualification work processes and test requirements.

Hans Christian Nilsen, Head of Boosting Technology, Aker Solutions, says: “The subsea industry is looking towards standardization for ensuring cost-efficient and reliable technology. Aker Solutions welcomes a harmonized approach with the vendors and oil companies, which will enable the future large-scale use of subsea boosting.”

Morgan Harland, General Manager, Subsea & Pipelines, Woodside, says: “Through innovation and collaboration, Woodside aims to deliver outstanding performance of our subsea and pipeline systems throughout the entire lifecycle. The standardization of subsea processing JIP and its initial focus on subsea pumping hits the mark with standardized guidelines being developed for subsea processing modules and interfaces that are efficient, reliable and readily installed and serviced. We use subsea boosting in our subsea production systems and know that these are important lifecycle cost drivers.”

Kjell Eriksson, Regional Manager Norway, DNV GL – Oil & Gas, says: “Like more conventional solutions, subsea processing must prove to be cost efficient to be considered attractive. At the same time, subsea processing will be an enabler for increased oil recovery. Through collaboration with the big players in the subsea industry, this JIP drives subsea processing towards being a competitive and viable solution for a wide range of future oil and gas fields.”

Phase 2 will be completed in 18 months.

Integrated Approach Accelerates Understanding of Petroleum Systems

11 2CGGlogoCGG’s JumpStart™ multi-client geoscience programs integrate the most advanced seismic data with reviewed, calibrated and interpreted well and geological data for petroleum systems evaluation, supported by regional interpretations and reports. The aim is to provide a single source for all the available information about an area in a consistent, accessible and ready-to-use format, in order to maximize the value of the seismic data and provide a regional context to support exploration efforts. There are seven JumpStart programs nearing completion, offshore Mexico, Brazil, Gabon, Australia, Indonesia & Timor Leste, and Norway, with more programs in the pipeline.

11 1 2CGG NorthViking LargeMiocene-Pliocene channel complex from the Northern Viking Graben JumpStart program (image courtesy of CGG Multi-Client & New Ventures).

The three major components of a JumpStart program are: the acquisition and processing, or reprocessing, of seismic data; collation and analysis of available wells, including core data where possible; and integration of this upgraded data, and other available information, into a comprehensive interpretation and evaluation of the basin’s petroleum system(s). The typical workflow starts with a regional geology review which forms the basis for the interpretation of the seismic data, basin model building, and play fairway analysis.

Well data represent true samples of the Earth and, as such, are essential to calibrate geological models. However, the number of wells available for review in JumpStart programs varies greatly, depending on the maturity of the basin and the data-release policies in the area; in the North Viking Graben, for example, 140 selected wells are being analyzed, whereas the Mexican Encontrado program uses 16. Therefore, a consistent petrophysical and stratigraphic review of the well data is undertaken to provide a robust chronostratigraphic framework for well ties. Where data is available, biostratigraphy is used to help define Consistent Stratigraphic Markers across the basin.

Previous well interpretations have frequently been found to be inconsistent, largely due to the scientific knowledge and tools available at the time the well was drilled. In the North Viking Graben, some older sands were wrongly assigned to be the Agat Formation, but closer examination of the age and composition enabled them to be reassigned and a better stratigraphic correlation was achieved between wells and seismic. Similarly, re-examination of the previous interpretation of wells in Mexico’s Encontrado program has significantly changed the understanding of the basin. Additional wells from the US Perdido area are now being analyzed to verify this. In Gabon, the re-interpretation of well data acquired through the pre-Aptian salt has revealed potential for an additional late syn-rift sand play to exist in the ultra-deep offshore area, different from the one commonly known as the Gamba sandstone.

Typically, the new stratigraphic markers and fast-track seismic data are used from an early stage to generate seismic-to-well ties to calibrate velocity models and formation markers, and are used for quality control throughout the seismic processing. The well data can also be used to generate pre-stack attributes and AVO gather synthetics which are used to control the quality of AVO signature preservation throughout the seismic processing flow.

Within this framework, additional data such as potential fields, geochemistry and satellite mapping of offshore hydrocarbon seeps are integrated into the imaging and interpretation of the seismic and the petroleum system evaluation. On completion of seismic processing, full structural and stratigraphic interpretation of the new data is performed for key horizons, and seismic attributes (pre- and post-stack) are extracted to map the potential presence of fluids and facies. Stratal Slicing on depositional horizons and spectral decomposition are used to provide a clearer understanding of lateral seismic facies and reservoir quality variations.

JumpStart data sets, comprising compiled, reviewed, and ready-for-use data with a full suite of interpreted information, comprehensive reports, prospectivity evaluation, and risk assessments, are available. Visit CGG on booth #630 to find out more about how JumpStart programs can help accelerate your petroleum systems understanding, saving you valuable time and enabling you to assess new areas more quickly.

Mermaid Awarded Subsea Contracts from Oil Majors

Mermaid Maritime Public Company Limited (“Mermaid”) announces that its South East Asian business units have recently been awarded subsea contracts from oil majors with a combined total estimated potential contract value of USD 4.3 million.

The first highlighted package of work involves the DP2 Dive Support Vessel ‘Mermaid Sapphire’ with a Work Class ROV and cement/grouting spread carrying-out a 16-day lump sum project involving subsea pipeline freespan rectification for a national upstream oil and gas company in the Gulf of Thailand.

12MermaidSapphireMermaid Sapphire: Photo credit: Mermaid Maritime

The second highlighted package of work involves a 2-year contract carrying out site survey & navigation services offshore East Kalimantan, Indonesia, for an international upstream oil and gas company using the client’s or third party chartered-in vessel.

Mermaid’s contract win announcements as published from time to time on SGXNet are not exhaustive as Mermaid continues to be awarded other smaller contracts from time to time in the ordinary course of business which are added to its order book.

Financial Effects

Assuming that the contracts had commenced and had been completed within the most recent financial year (the Company’s last financial year ended 31 December 2016), the contracts would have had a non-material effect on the earnings per share of the Company (on a consolidated basis) and a non-material effect on the net tangible assets per share of the Company (on a consolidated basis) for that financial year.

Interest of Directors and Controlling Shareholders

None of the directors or controlling shareholders of the Company has any interest, direct, or indirect, in the contracts. There are also no new directors proposed to be appointed to the Company in connection with the contracts.

DAV MX™ CircSub Cuts Time and Costs on Deepwater Cementing Jobs in GoM and North Sea

13ChurchillThe award-winning DAV MX™ circulating sub from Churchill Drilling Tools, an oilfield service company specializing in drilling innovation, has been successfully used to significantly cut process time and costs for two challenging deepwater cementing operations, without compromising string functionality.

The DAV MX™ is a multi-function, multi-cycling circulating sub (CircSub) which is activated with Churchill’s patented MX™ Smart Dart technology. The valve assembly operates on a piston and spring mechanism, which is activated when a dart is pumped down the drillstring. A range of robust darts are pumped at high speed into a simple sub and catcher.

In a deepwater well in the Gulf of Mexico, following the deployment of several failed lost circulation material (LCM) pills at 28,000 feet, a heavy cement 250bbl slurry of 16.6ppg was directed into the formation via the DAV MX™ ports. This protected the lower bottom hole assembly (BHA) and delivered the cement straight into the loss zone. The unique ‘latch and seal’ ability of the DAV MX™ prevented ingress into the lower BHA while the innovative “lock open” feature permitted bypass at low flow rates to restrict dynamic losses.

The controlled cement delivery and the ability to avoid tripping out of hole proved to be a major time and cost-saver for the operator.

Additionally, in a high angle well in the Norwegian Sector, of the North Sea, a cement slurry was delivered through a closed DAV MX™ and onto the bit to cure severe losses at 18,823ft. Two treatments of fracture-sealing cement were pressured into the formation and activator balls were successfully chased through (without opening the DAV MX™) to clean any residual material from the pipe.

At a total depth of 20,748ft, the DAV MX™ CircSub was then activated in “split flow” mode to allow rotation of the string for superior hole cleaning performance. This further demonstrates the ability to set optimal flow paths in a single sequence with the tool.

The DAV MX™ CircSub offers operators unique flexibility with a range of Smart Darts™ available, each designed to offer a specific performance depending on requirements. The DAV MX™ continues to showcase its utility to major operators and further enhances its position as the bypass tool of choice for major operators worldwide. In deepwater, high pressure/high temperature (HPHT) and high angle operations, the speed and performance of the DAV MX™ has delivered thousands of hours of savings.

Churchill CEO Mike Churchill said: “In these high-risk operations, it is important that the technology is as robust as possible because cement ingress can compromise valve functionality - causing non productive time. The most likely type of damage would be an inability to re-seal after the closing cycle, however in these two cases, the operators were not exposed to valve NPT due to the robustness of the DAV MX™.

“We have an experienced team of engineers, always eager to support our customers, and I am very pleased that the DAV MX™ CircSub continues to demonstrate toughness and utility on challenging drilling operations. Although it really excels in deepwater, high angle, HPHT and ERD wells, we believe it offers real value for money in any bypass application because of its speed, simplicity and reliability.”

Pipetech Set To Diversify and Grow With New Leadership Team

Pipetech, the independent pipe and process cleaning solutions specialist, has set out ambitious plans to expand its services to industrial markets and introduce subsea and wells to its offshore portfolio following recent contract wins and the appointment of a new leadership team.

14Pipetech Eric Doyle and Alan Brunnen of Pipetech 2Eric Doyle and Alan Brunnen of Pipetech

Eric Doyle has been appointed managing director following management positions at several energy companies including most recently regional director at Aquaterra Energy. Alan Brunnen, former executive vice president at Aker Solutions has joined the company as non executive director. Both bring a wealth of industry experience which they are applying as Pipetech enhances its technology and solutions targeting costly flow and blockage challenges at oil and gas assets and industrial power plants and refineries.

The Aberdeen headquartered company has developed a novel Deep Water Cleaning System which has been deployed in a £1.2 million campaign by a major operator to successfully clear a blockage in a subsea manifold in a Norwegian North Sea campaign and plans to further expand its subsea capabilities in the coming months. The team is also developing a new wells downhole cleaning tool.

Pipetech has also recently won industrial services contracts including process cleaning at a gas terminal in Scotland as well as the company’s first contract in Sweden for a major oil refinery. The organization plans to continue its expansion into new international markets, particularly in Denmark, Sweden and Holland.

Eric Doyle, managing director of Pipetech said: “Pipetech has a new business strategy which will see us focus on solutions designed to tackle the inefficiencies faced both offshore and at industrial power plants and refineries by scale, flow and blockage problems. Alan’s advice and influence is going to be invaluable as we invest in expanding our subsea and wells offerings and continue to invest in new technologies to solve the challenges being faced by industry.”

Alan Brunnen retired from Aker Solutions last year after a career in oil and gas spanning more than three decades. He joined Aker Solutions in 2005 and was appointed executive vice president in 2011. He previously held various international managing director positions and was Chief Operating Officer at Stolt Offshore.

He said: “I see great potential for developing Pipetech’s solutions for the subsea industry and the first deployment of the Deep Water Cleaning System instils confidence in the performance of this new cleaning technology for subsea pipelines and manifolds. Wax build-up is a particular challenge and there is the potential for operators to move from regular chemical cleaning to a more effective solution that can be planned into maintenance schedules. I look forward to working closely with the team to maximize the opportunities around the subsea market.”

Pipetech launched in 2001 and has bases in Aberdeen, UK and Stavanger, Norway.

Tim Charters Joins National Ocean Industries Association Staff

15NOIA TimChartersTim Charters has joined the staff of the National Ocean Industries Association (NOIA) as Senior Director of Governmental and Political Affairs. He comes to NOIA from the National Stripper Well Association (NSWA) where he represented over 18,000 small business men and women in America’s upstream energy industry as Vice President of Governmental and Regulatory Affairs.

“I am very pleased to welcome Tim as the newest member of the NOIA staff. His experience representing the energy industry while at NWSA coupled with his extensive Congressional experience focusing on offshore energy and natural resources issues make him an excellent fit for NOIA and will serve our member companies well,” said NOIA President Randall Luthi.

Charters brings nearly 20 years of Congressional experience to NOIA. From 2008-2015, he served as Staff Director of the Energy and Mineral Resources Subcommittee of the House Natural Resources Committee under Chairman Doc Hastings (R-WA). During his tenure, the Committee focused on upstream oil and natural gas legislation, and Charters worked closely with Committee Leadership, House Leadership and the Senate to craft multiple bipartisan successes including authoring the legislation enacting the U.S.-Mexico Transboundary Agreement, leading House passage of legislation enacting revenue sharing for outer continental shelf (OCS) revenues, and directing the Secretary of the Interior to lease the OCS areas with the greatest known resources. In addition, Charters served as Director of Policy Coordination for the full Natural Resources Committee.

From 2006 to 2008, Charters served as Legislative Director to Rep. Steve Pearce (R-NM), a former oil and gas service company owner and senior member of the House Financial Services Committee and Chairman of the Western Caucus. Prior to that, Charters owned and operated his own lobbying company, Charters and Company, and before that served nearly ten years for multiple members of the California Delegation.

LAGCOE Names Don Briggs as LAGCOE Looey 2017

16 1LAGCOE organization logoLAGCOE announces LAGCOE Looey 2017 as Don Briggs, founding member and president of the Louisiana Oil and Gas Association. LAGCOE Looey is an honorary position given to someone who has accomplished something great in the oil and gas industry. LAGCOE Looey recipients have shaped the oil and gas industry through years of devoted hard work while continuously giving back to their community.

16 2Don Briggs“Don Briggs has worked tirelessly to ensure the existence and health of Louisiana’s oil and gas industry,” said Kenny Crouch, Pressure Control Systems and LAGCOE chairman of the board. “He is quite deserving of the honor of wearing the golden hardhat in recognition for all he has done for the industry.”

Briggs holds a bachelor’s degree from the University of Southwestern Louisiana, which is now known as the University of Louisiana at Lafayette. He began his career in the oil and gas industry by founding Aztec Pipe and Supply, which became the conglomerate known as the Aztec Corporation. Aztec serviced the oil and gas industry from pipeline supplies to drilling fluid. Briggs also started the Louisiana Independent Oil and Gas Association (LIOGA), serving as president of the association of only 12 members, which has since become the Louisiana Oil and Gas Association (LOGA).

Today, LOGA’s membership comprises more than 1300 members, representing the independent exploration, production and servicing sectors of Louisiana’s oil and gas industry. Under Briggs’ leadership, the association has worked with governors, legislators and members of Congress - from both sides of the aisle - to ensure that the culture of the oil and gas sector remains in Louisiana.

Briggs still holds the title of president of LOGA, where he remains committed to fight for Louisiana’s oil and gas industry and serve in his community.

LAGCOE will host a luncheon to honor Don Briggs as the 36th LAGCOE Looey in August as part of the kick-off to LAGCOE 2017, held October 24-26, 2017, at the Cajundome & Convention Center in Lafayette, La., USA. 

ELA Container Offshore GmbH Welcomes New Employees

ELA Container Offshore GmbH announced that three new employees have joined the company to expand its international activities. Since its founding in August 2014 the company now counts 15 employees.

“Next to our Sales Representative in the Netherlands and Belgium we decided to expand our activities within Northern Europe and the Middle East”, Managing Director of ELA Container Offshore GmbH, Hans Gatzemeier, says.

17ELAOffshoreAlready in January and May Hans Gatzemeier welcomed two new international sales employees: Fabian Brands and Niels Albers

Within the first six months the new employees will complete a training at the headquarters in Haren (Ems), Germany, to learn everything about the offshore container business: from production and transportation up to assembly and customer service. According to Hans Gatzemeier these basics are essential for explaining and highlighting the different types of ELA Offshore Containers and its benefits to potential clients. “Working in a ‘Blue-collar’ in the production line helps to get familiar with the container and its structure by heart. This training gives me great insights that I will need for my future tasks”, new Business Development Manager Northern Europe at ELA Container Offshore GmbH, Niels Albers, explains.

Also, the Middle East region will now be served by a Business Development Manager. Seif El Guindy recently joined the team and is doing his traineeship in Germany right now. “For me this new job is a very exciting opportunity and challenge. I arrived from Egypt last week and already fell in love with Germany”, Seif El Guindy comments on his new job as Business Development Manager Middle East at ELA Container Offshore GmbH. The ELA group already has a subsidiary in Dubai, Seif El Guindy will join the local team to expand offshore business within that region.

ELA Container Offshore has already gained diverse experience in the Offshore-Wind and Offshore Oil & Gas Industry. Whether on pontoons, transformer platforms, rigs or supply vessels - ELA Container is the ideal partner, offering tailor-made concepts for all requirements in the form of Living Quarters, Offices, Dining Rooms, Galleys, Laundries, Recreation or Locker Rooms and all types of Carrying Units. ELA Offshore containers are equipped with all the necessary utilities.This guarantees, in combination with all ELA Offshore features, a long service life, functionality and comfort.

The ELA Container Offshore GmbH, part of the Albers Group. ELA Container GmbH, is a family-owned company in northern Germany and has been continuously developing container technology providing the rent and sale of high quality mobile rooms and containers since 1972. Currently, the company has leased out more than 23,000 mobile units throughout Europe, Africa and the Middle East. ELA’s own fleet of 60 special trucks with loading cranes ensures safe transport and installation on site. Offices throughout Germany provide fast deliveries on short notice to any location.

Eni Meets the Regulatory Requirements for Its Beaufort Sea Exploration Plan

BOEM announces that Eni US Operating Co. Inc. has met the regulatory requirements for its Beaufort Sea exploration plan (EP) to be “deemed submitted,” and invites public comment on the plan.

Eni US is a subsidiary of Italian multinational oil and gas company Eni S.p.A. In its plan, Eni proposes to drill into the federal submerged lands of the Beaufort Sea from their Spy Island Drillsite, a pre-existing facility located in Alaska state waters.

1Eni BOEMNikaitchuq North Map 20170531Image credit: BOEM

BOEM now has 30 calendar days to evaluate the EP in accordance with federal law and regulations. This evaluation will include a site-specific Environmental Assessment of the proposed exploration activities pursuant to the National Environmental Policy Act. By the end of the 30-day period BOEM may approve the EP, require modifications to the EP, or disapprove the EP.

The decision to deem the EP submitted initiates two separate (but partially concurrent) public comment periods:

  • A 10-day period (closing midnight Eastern Time on Thursday, June 22) to provide information on issues that should be examined in the Environmental Assessment; and
  • A 21-day period (closing at midnight Eastern Time on Monday, July 3) to comment on the Exploration Plan itself.

To view the EP and supporting documents, and instructions for commenting, click here.

An EP describes all exploration activities planned by the operator for a specific lease or leases, including the timing of these activities, information concerning drilling processes, the surface location of each planned well, and actions to be taken to meet important safety and environmental standards and to protect access to subsistence resources. An EP does not allow an operator to produce oil if any is found; for that, an operator is required to obtain approval of a Development and Production Plan (DPP).

In addition to an approved EP, Eni is responsible for procuring all appropriate permits from other state and federal agencies.

There are currently four oil- and gas-producing islands in the waters of the Beaufort Sea: Spy Island, Northstar Island, Endicott Island, and Oooguruk Island. The construction of a fifth island, as proposed in a DPP submitted to BOEM by Hilcorp Alaska LLC, is under review by federal agencies.

James Fisher Subsea Excavation Launches New Innovative MultiROV System

2MultiROV 2 copyLeading M/CFE excavation specialist James Fisher Subsea Excavation (JFSE) has launched the innovative new MultiROV system to satisfy additional client requirements.

The MultiROV brings new levels of controllability and productivity for excavation requirements in the offshore oil & gas and renewable energy sectors. It reduces the services required from a vessel as it needs no stabilizing tuggers or clump weights. On-board thrusters allow movement and heading control which increase the operational window and productivity.

The system’s configuration means it can be deployed in water depths in excess of 3000m bringing the benefits of M/CFE to the deep-water market.

JFSE’s range of 30 equipment spreads features proven and established technologies alongside pioneering innovations to ensure clients receive a truly tailored solution to their subsea excavation requirements. The team is responsible for the successful completion of more than 450 projects in 45 countries.

Graham Murdoch, technical director at JFSE, said:

“This is an exciting advancement in excavation technology. The MultiROV will bring real benefits to our clients with a range of challenging requirements. Automated heading and positioning controls greatly increase both productivity and the operational working limits.”

The system as standard also has the data hosting ability to run a multitude of survey sensors meaning there are flexible options for the real-time data that can be captured during operation. Additional capabilities of the MultiROV allow for the deployment and use of multiple other subsea tooling including shears, cutters and grabs.

The MultiROV has been developed with ROV specialist Aleron Subsea and is exclusive worldwide to JFSE.

Gary McConnell, business development manager at Aleron Subsea, said:

“We are extremely pleased to be involved in this development project with JFSE. Its market-leading excavation equipment married with our technically advanced ROV solutions have produced a bespoke system for challenging applications within the subsea excavation market.”

JFSE’s fleet of tools provides a non-contact form of excavation that eliminates the risks associated with other excavation methods, especially around complex subsea assets. Further enhancing their capabilities, the tools have the additional benefit of real-time sonar imaging which enables precision excavation in confined areas, as well as for all cable or pipeline trenching works with diameters from 1” to more than 60” scopes. The tools are used for applications including pipeline and cable trenching, deburial, rock dump dispersal and seabed clearance and preparations. The M/CFE spreads are ideal for moving materials such as sand, silt and mud, drill cuttings, clay and rock dump.

With strategic hubs in the UK, UAE, Singapore, Venezuela, USA, Brazil, China and Mexico, it is the only M/CFE company capable of working on multiple projects simultaneously and has equipment stationed on five continents. As part of the James Fisher group, JFSE has access to bases and sister company expertise in more than 40 countries worldwide.