Statoil, on behalf of the Johan Sverdrup partnership, will sign a contract with Aibel for the construction of the deck for the drilling platform on the field. The contract is worth in excess of NOK 8 billion.
The contract includes engineering work, procurement and construction (EPC) of the drilling platform deck. Engineering design will be undertaken at Aibel's office in Asker outside Oslo
The platform deck will be built at the Aibel's yard in Thailand and Haugesund, and at Nymo's yard in Grimstad.
Assembly and mechanical completion of the deck will be carried out at the Aibel's yard in Haugesund with delivery in 2018. Installation on the field is planned for the same year.
"The Johan Sverdrup field is one of the biggest discoveries on the Norwegian continental shelf that will, for its entire lifetime, be a pillar for Norwegian industry and value creation for the Norwegian society. On behalf of the partnership we are looking forward to a close cooperation with Aibel in order to ensure a safe and efficient delivery of this project," says Statoil's Arne Sigve Nylund, executive vice president of Development & Production Norway.
"Targeted efforts have been made to reduce cost and ensure a cost-efficient delivery and execution. We are therefore pleased to see that Norwegian suppliers have regained their competitiveness. The drilling platform is one of four platforms in the planned field centre and it is a complex and challenging project in itself. In order to succeed we are dependent on competent suppliers at all stages, and Aibel has been awarded this contract in a very competitive market," says Margareth Øvrum, executive vice president for Technology, Projects & Drilling Statoil.
Investment costs for full field development are estimated to be in the region of NOK 170-220 billion (2015 value) with recoverable resources of between 1.7 and 3.0 billion barrels oil equivalent.
Johan Sverdrup's first phase development involves four installations including an accommodation a drilling, a riser and process platform, as well as three seabed templates for water injection. The platforms will be connected by walkways.
The ambition is a recovery of 70%. At plateau production the field will account for roughly 40% of the total oil production on the Norwegian continental shelf. Start-up is planned for late 2019.
The Johan Sverdrup partnership consists of Statoil, Lundin Norway, Petoro, Det norske oljeselskap and Maersk Oil. The partnership has recommended Statoil as operator for all the field's phases.
The award of this contract is subject to approval of the Plan for Development and Operation in 2015 by the Norwegian Parliament.
McDermott International, Inc. (NYSE: MDR) ("McDermott") and Petrofac Limited ("Petrofac"), an international oil and gas facilities service provider, announces they have formed a strategic marketing alliance to pursue top-tier deepwater subsea, umbilical, riser and flowline ("SURF") projects.
The five-year alliance expects to provide oil and gas companies a competitive, integrated solution across a broad range of complex engineer, procure, construct, install ("EPCI") Subsea projects in deep and ultra-deepwater across the US Gulf of Mexico, Mexico, Brazil, the North Sea, Mediterranean and West Africa.
Petrofac's JSD 6000 new vessel complements McDermott's global fleet as it offers top-tier functionality for a wide range of ultra-deepwater pipelay, subsea lowering and above surface construction work, through its combined J-lay, S-lay and ultra-heavy lift capabilities. (Photo: Business Wire)
Leveraging the complementary capabilities and experience of both companies, the alliance will open up further EPCI opportunities by combining McDermott's specialty SURF fleet, its new Derrick Lay Vessel DLV 2000 and strong subsea fabrication capability with Petrofac's world class JSD 6000 installation vessel. Currently under construction, the JSD 6000 complements McDermott's vessels, offering top-tier functionality for a wide range of ultra-deepwater pipelay, subsea lowering and above surface construction work, through its combined J-lay, S-lay and ultra-heavy lift capabilities.
"The strategic value of this alliance benefits our clients by combining each company's strengths to create a new competitive top-tier market participant," said Scott Cummins, Senior Vice President, Commercial for McDermott. "As a leading offshore and subsea EPCI contractor, McDermott has a demonstrated track record of delivering complex, Subsea projects such as the ongoing INPEX Ichthys Gas Condensate SURF project offshore Australia. We look forward to partnering with Petrofac on projects of this complexity and scale in the deep water environment."
Yves Inbona, Managing Director for Petrofac's Offshore Capital Projects business, said: "We are delighted to be working with McDermott who are natural partners to progress our offshore strategy in the challenging yet ultimately rewarding SURF markets."
ABOUT THE ALLIANCE
The key terms of the Alliance are:
• Territory: U.S. Gulf of Mexico, Mexico, West Africa, Brazil, North Sea and Mediterranean.
• Scope: SURF projects above US$200 million
• Duration: Five years (plus follow-on time to deliver secured projects)
• Structure and scope: project scope is anticipated to be split between partners roughly equally, but according to the specifics of a particular opportunity, and governed by separate project agreements.
Under five-year contract, BP will offer courses next year in a new state-of-the-art Maersk Training facility in Houston
BP will offer advanced training programs for its offshore drilling teams under a new global agreement with Maersk Training, further underscoring BP's commitment to safe and reliable operations.
By 2016, Maersk Training, which currently is working with BP on training in Europe, plans to open a new state-of-the-art facility in Houston that will feature highly interactive simulators replicating nearly every critical job on an offshore drilling rig.
View in to the dome simulator that virtually resembles the drill floor - Courtesy of Maersk Training
BP will use the facility to train integrated offshore drilling teams – comprised of BP employees and contractors -- in what it calls an "immersive simulation environment." The hands-on, scenario-based approach goes well beyond traditional classroom training. It allows teams to practice events and joint procedures together as an integrated unit, rather than as individual contributors.
"These programs are a step forward in the training and development of BP's offshore personnel and of the many contractors who support our global offshore oil and gas operations," said Gary Jones, head of BP's Global Wells Organization. "We hope the entire offshore industry benefits from this important collaboration."
Like similar BP training programs already underway at a Maersk Training facility at Svendborg, Denmark, courses at the Houston facility will incorporate human and organizational factors that frequently are cited as a direct cause or contributing factor to offshore incidents. Course instructors also will be able to assess personnel under intense virtual reality -- and to levels that exceed industry standards.
"BP is taking a holistic and integrated approach to training that will help enhance capabilities across the offshore oil and gas industry," said Claus Bihl, Maersk Training's global chief executive officer. "Thanks to this agreement, many more offshore workers will benefit from valuable instruction and work together to deliver safety as their highest priority, regardless of their company or individual role."
The new Maersk Training facility will be located in north Houston and patterned after the company's offshore simulation complex in Denmark, which opened in 2012. The Houston facility will include simulators for cyber drilling, vessel bridge, cranes and engine room, plus an emergency response room. In addition, Maersk Training will equip the facility for ship-handling operations to serve the maritime training market.
Aker Solutions delivered the key subsea component for the system being developed by Marine Well Containment Company to limit environmental risks from oil and gas production in the U.S. Gulf of Mexico.
The Subsea Containment Assembly, or SCA, is designed to contain a well-control incident by connecting and creating a seal to prevent oil leaks. It can also be used in a cap-and-flow plan to direct fluid to vessels on the surface. The technology works under pressures as high as 15,000 psi.
The equipment was delivered to Marine Well Containment Company's team in Ingleside, Texas. It weighs 170 tons and consists of a stack of adapters and connectors assembled on a steel base. Aker Solutions developed the technology over three years, involving designers and engineers at the company's hub in Houston.
"This has been a collaborative effort involving ten oil companies and is a great example of how the offshore industry can pull together," said Alan Brunnen, head of Aker Solutions' subsea business. "Aker Solutions is pleased to have contributed its unique knowledge and experience in high-pressure subsea technology."
Asset Guardian Solutions Ltd (AGSL), which specializes in protecting companies' process critical software assets, announced that it has secured a deal with an oil and gas supermajor in Perth, Western Australia.
The contract is the third to be awarded to AGSL in Australia during the last two years. This latest contract requires AGSL to provide Asset Guardian, a process software management toolset that protects the integrity of process control software used to operate key oil and gas assets.
In 2012, Woodside Energy implemented Asset Guardian to protect the process control software used to operate the company's production facilities. The following year, INPEX purchased Asset Guardian for its Ichthys LNG Project, a US$34 billion development that aims to develop the gas and condensate field in the Browse Basin offshore Western Australia.
Initially, Asset Guardian software will be used during the commissioning phase of a new LNG development that is nearing completion off the northwest coast of Australia. The specialist software will manage process software configuration changes and all control system hardware associated with the project. It will also provide the plant operator with a secure repository to store software files and associated data.
Customized solution = a perfect fit
A standard feature of Asset Guardian software is the ease with which it can be customized to meet the customer's exact requirements. As a result, the customer benefits from a software-based solution, tailored to suit their specific needs.
Once the project construction phase is completed, the company will continue to use Asset Guardian centralized software repository to store process control software to ensure that backups are always readily available, especially in the event of a software-related production system failure. With the Asset Guardian toolset in place, the operator will be able to resume production quickly, minimizing the negative financial impact of any production downtime.
Providing reliable communications in cyclone-prone regions
The reliability of communication links between onshore and offshore locations cannot always be guaranteed. Because the development is located in the heart of one of Australia's most cyclone-prone regions, communications with the offshore facilities can be unreliable. To ensure that the integrity of all software and data files managed by Asset Guardian is maintained when communication links are disrupted, AGSL is also supplying AGSync software. This specialist software continues to operate during periods of disrupted communication, and seamlessly synchronizes software and data files across multiple locations when links are restored.
Quality training holds key to maximizing return on investment
Quality training is an essential part of the process. It gives users the confidence and the skills to use the Asset Guardian toolset effectively, maximizing the return on the company's investment. AGSL is providing comprehensive classroom-based training at the company's offices in Perth.
""We are delighted that our third major contract in Australia has been awarded by one of the world's largest global operators. It is extremely satisfying that they have committed to using Asset Guardian for this prestigious development. Without a doubt, they are being very forward-thinking, not only in their approach to better managing their process control software, but in taking every precaution to protect the software that will be used to operate this major development," said Sam Mackay, chief executive of AGSL.
On 21 February Statoil and its partners started up production from Oseberg Delta 2 in the North Sea. The field's recoverable reserves are estimated at 77 million barrels oil equivalent.
Oseberg Delta 2 is the tenth project in Statoil's fast-track portfolio to be completed.
The field, which is tied back to the Oseberg Field Centre, has been developed using two subsea templates with capacity for a total of eight wells.
The initial phase of the plan initially involves three oil producers and two gas injectors.
"Delta 2 is an important element in extending the lifetime of Oseberg. It provides a good example of how we can make lesser discoveries profitable by using existing infrastructure while it is still available," says Arild Dybvig, vice president for fast-track development projects in Development & Production Norway.
The start-up of the first well is in line with the development plan and takes place 38 months after the discovery became part of the fast-track portfolio.
The total investment is slightly less than NOK 7 billion, well below the estimated investment cost when the project was sanctioned.
"We've delivered yet another high quality, fast-track development according to plan and well within budget," says Torger Rød, senior vice president for subsea projects in Technology, Projects & Drilling.
Oseberg Delta 2 marks a further development on the Delta terrace where oil from two wells on an existing template has been produced since 2008.
"The new development includes gas injection that will give us a substantially greater recovery rate."
"There are also some good opportunities for the further development of the area and an exploration well has already been planned in the southern part of the Delta terrace," says Terje Gunnar Hauge, vice president for operations on Oseberg East.
The plan for development and operation was submitted to the Ministry of Petroleum and Energy on 30 May 2013.
Facts about Oseberg Delta 2
• Decision to commence project development: December 2011
• PDO approved on 10 October 2013
• Location: In North Sea, 14 kilometers south of Oseberg Field Centre
• Volumes: 77 million barrels of oil equivalent (32 mboe oil and 45 mboe gas)
• Depth: Approx. 100 meters, 3,100 meters under seabed
• Estimated lifetime: 20 years
Partners: Statoil (operator) (49.3%), ConocoPhillips (2.4%), Petoro (33.6%) and Total (14.7%)
MADCON Corporation announces the launch of its Well Integrity Program (W.I.P.). The Program provides a complete array of services from inspection and preventive maintenance to full structural restoration and asset management. MADCON works with the operators to design the Program to specifically meet their individual requirements. The Company has multiple patented repair technologies that restore full structural integrity to severely corroded; damaged; or collapsed wells.
Owners & Operators are presently utilizing the program to:
• MAXIMIZE CURRENT & LONG TERM REVENUE POTENTIAL
• PRESERVE FUTURE VIABILITY & SIDETRACK OPPORTUNITIES
• RESTORE FULL STRUCTURAL INTEGRITY
• MEET REGULATORY COMPLIANCE
• DEFER PREMATURE REMOVAL COST
• PROVIDE TEMPORARY CASING REPAIRS FOR P & A OPERATIONS
Decom North Sea (DNS), the representative body for the decommissioning industry, commissions and facilitates projects that deliver meaningful benefits for its members and improves the efficiency of future of decommissioning activities.
This week, DNS has announced a partnership with Zero Waste Scotland (ZWS) and subsea engineering and training firm, Jee Ltd, which will investigate efficient solutions for the recovery of concrete subsea mattresses and re-use, thereby contributing to the circular economy.
The project involves engaging with operators and suppliers across the oil and gas industry, with both DNS and Jee's expert engineers conducting an economic and environmental assessment of the condition of the mattresses, and identifying the best techniques for their recovery.
Nigel Jenkins, CEO of DNS looks forward to this project getting underway: "This project was implemented in direct response to our operator member requests. What to do with mattresses as part of an efficient decommissioning solution is an often discussed "thorny" issue. Leaving them in situ is not ordinarily an option, although we will revisit this. Mattresses were not specifically designed to be removed. Unfortunately, they can degrade underwater over time, leading to a complicated and costly removal process during decommissioning."
Building on previous collaboration with Zero Waste Scotland, DNS has selected Jee, through a competitive tender process, to challenge current thinking and uncover the efficient removal methods that can reduce costs and maximise decommissioning sector benefits from the implementation of circular economy principles. These principles ensure that materials are retained within productive use, in a high value state, for as long as possible – a succinct illustration of DNS' fundamental objective to drive effective and efficient decommissioning activity which will ultimately benefit the oil and gas industry, the environment and the UK tax payer.
Dean Kirby, Senior Engineer at Jee Ltd said: "Millions of pounds are being spent on UKCS decommissioning each year, and this will continue for several decades. As with the majority of decommissioning projects, the recovery and disposal of subsea mattresses presents a significant obstacle and financial burden to operators and contractors globally.
"There is a need for a safe, quick and cost effective system for mattress removal, and at Jee we strive to identify and develop the best solutions for the industry."
Iain Gulland, Chief Executive of Zero Waste Scotland said: "The circular economy is becoming increasingly prominent nationally, because of the economic opportunities and environmental benefits it presents. This ambitious project to recover and re-use deep sea mattresses is a great example of the sort of innovative thinking currently happening in Scotland."
Concrete mattresses provide pipelines, cables and umbilicals with protection from dropped objects, and add weight and stabilisation. Jee's analysis will identify the potential reuse and circular economy applications for the mattresses, as well as highlighting guidance on best practice for recovery and key points for derogation cases to leave in situ.
Project findings will be delivered through an industry report and presentation via DNS later this year.
New Industries, Inc., a Morgan City, La.-based fabricator of subsea hardware, is pleased to announce that President Bill New and the business development team will attend the annual Subsea Tieback Forum & Exhibition (SSTB) as exhibitors. SSTB will be held the Ernest N. Morial Convention Center in New Orleans from March 3-5 2015.
As the largest global exhibition for the subsea engineering industry, SSTB attracts industry professionals, companies and regulators for three days of information exchange, networking and business development that has become crucial to improving all facets of the evolving industry.
New Industries, a first-time SSTB exhibitor, will be located in booth 1604, near the southeast corner of the convention center. New will be available for meetings throughout the duration of SSTB.
"We are looking forward to visiting with our existing customers and the opportunity to introduce ourselves, our products and our services to new customers," said New.
Attendees who wish to arrange a meeting or learn more about New Industries' capabilities are encouraged to call 985-385-6789 or visit www.newindustries.com.
Harris CapRock Communications has launched the industry's first unified, fully managed satellite, wireless and terrestrial connectivity service designed to reduce customers' voice, data and equipment management costs.
Harris CapRock One is an intelligent, highly-integrated, end-to-end service that transparently switches between the various transport mediums to optimize communications for customers around the globe.
Customers in the energy and cruise industry, for example, often struggle to obtain reliable, always-on communications when their vessels, drilling sites and ships change their global positions and communications needs. With Harris CapRock One, they can replace current single or dual-band communications support options with a multiple-medium solution that exceeds their needs by providing optimal connectivity at any given time.
"Harris CapRock is going to drastically change the way our clients experience managed communications services," said Tracey Haslam, president, Harris CapRock. "Harris CapRock One is the first commercial service of its kind to unify satellite, wireless and terrestrial connectivity into one platform. Customers want a solution that is flexible and optimizes their operations no matter where they are located, or how mobile their assets are. Harris CapRock One delivers that and more."
Harris CapRock's unique service offering combines a multi-band antenna with an Intelligent Communications Director (ICD). The multi-band antenna allows for C-, Ku- and Ka-band connectivity with no additional moving parts, meaning that any satellite orbiting the Earth can be accessed with no technician intervention required. The ICD is a geographically aware smartbox that recognizes where the multi-band antenna is around the world and carries a database of the network footprints available. The device is aware of the operator's traffic and can route traffic intelligently over the most appropriate network path based on speed, latency, location and cost. By optimizing the network traffic, the ICD enhances the end-to-end experience, completing an intelligent routing solution with end-to-end application performance management.
Energy and cruise industry businesses can invest in fewer radomes that support any signal and will self-configure for the scenario depending on where the vessel or site is in the world. Ships and oil and gas sites now have multiple communications choices in one technology solution, achieving the highest uptime in the industry at 99.999 percent. Customers can receive this high availability solution for one simple price.
Other telecommunication services supported by Harris CapRock One include fiber, point-to-point and point-to-multi-point radio, WiMax, terrestrial Multi-Protocol Label Switching (MPLS), and private and carrier-based Long Term Evolution (LTE). Additionally, Harris CapRock can deploy hybrid networks that leverage multiple transport technologies, providing true "no touch roaming" services across an entire fleet.
UTEC, an Acteon company, has announced the successful award of the full survey services contract on the upcoming Technip Moho Nord EPIC project in West Africa. The project, operated by Total E&P Congo, is located approximately 75 kilometers off the coast of the Republic of the Congo, at water depths ranging from 650 to 1,100 meters.
The contract covers all survey services required on multiple vessel assets during the installation of:
• 230 kilometers of rigid pipelines,
• 23 kilometers of flexible pipes,
• 50 kilometers of umbilicals,
• 50 subsea structures as well as various other structures and rigid jumpers.
The offshore campaign will be spread over 2015 and 2016, with the primary installation vessels being the G1200, a rigid pipe S-lay and heavy-lift construction vessel, and the Deep Pioneer, a multi-purpose deep-water vessel. The project will see the installation of a subsea positioning network of more than 100 acoustic transponders allowing positioning of multiple vessels and ROV's, often working simultaneously in the field, covering tasks including pipeline touch down monitoring, subsea asset positioning and jumper metrology.
UTEC will manage the project between its EMEA regional headquarters in Aberdeen and its newly opened branch office in Pointe Noire, working closely with Technip's operating center in Paris.
Kevin McBarron (photo), Director of Business Development EMEA comments "This major contract award confirms Technip's confidence in UTEC's track record on large and complex EPIC projects and follows on from the success on both Jubilee & Jubilee Phase 1A projects in Ghana. It also confirms our strategic commitment to Africa."
Martin O'Carroll, UTEC CEO, adds "This significant project award supports UTEC's team approach to our clients by consistently delivering the highest quality services, safely and effectively. Technip is a valued partner and we look forward to delivering another successful project together."
International oil and gas support services company ASCO, has continued its success in the Australian oil and gas market by winning the contract to manage the supply base for BP's upcoming exploration program in the Great Australian Bight.
Commencing in 2016, the exploration program includes four wells within its offshore permits located approximately 300 kilometres southwest of Ceduna, South Australia.
The 24/7 supply base at Flinders Port in Adelaide will be managed by ASCO in partnership with Flinders Logistics, a subsidiary of Flinders Port Holdings.
ASCO Australasia CEO, Matt Thomas, said ASCO was proud to have been awarded this significant contract by one of the world's leading energy companies.
"The Great Australian Bight is a challenging new global frontier in oil and gas exploration and ASCO will bring its significant international experience to support BP's operations," Mr Thomas said.
ASCO is the world's leading oil and gas supply base operator across five continents. ASCO's presence in Australia has increased significantly over the past year, with the opening of the Darwin Marine Supply Base, the acquisition of Bonnie Rock Transport and a major contract win to transport Barrow Island construction waste for Toxfree.
"ASCO's selection to manage the base and all associated logistics is further recognition of our global capability and reinforces our strategic direction in Australasia," Mr Thomas said.
"We are now seen as a valuable and viable alternative to current service providers in the oil and gas, transport and logistics arena."
Mr Thomas said ASCO was committed to supporting South Australian businesses and workforce development.
"We recognise the importance of BP's activities to the South Australian economy and will support local employment and skills development across our operations. We are already in discussion with some of our partners who are looking at establishing South Australian operations to support our activities."
Supply base activity will ramp up from early 2016, employing approximately 25 full-time staff at peak. The base at Flinders Port will provide the full range of stevedoring and materials management services including:
• Loading and off-loading of vessels and trucks
• Ground transportation scheduling and coordination
• Warehouse and yard management
• Port in/out arrangements, visitor orientation
• International Ship and Port Facility Code accredited security
• Bulk storage and tank farm management
• Waste management and recycling/disposal
• Australian Quarantine and Inspection Service compliant wash-down facilities
The facility will have 120m of quayside and more than 20,000sqm of laydown area. It will include a liquids mud plant, light and heavy vehicle parking areas and an administration building with training room capability.
The MacArtney Group is pleased to announce the signing of a representative agreement with Okeanus Ltda. to function as the official representative of MacArtney underwater technology products on the Brazilian market. Following similar deals signed with companies Cledirsa (Uruguay) and Alakaluf (Chile), the agreement with Okeanus marks the third South American strengthening of the global MacArtney representative network within the scope of just six months.
Founded by marine scientist Laura Azevedo and her father in 2007, Okeanus is a technical consulting company offering products, services and sales representation in the field of oceanography, hydrology, meteorology and environmental monitoring. The Okeanus HQ is located on the Copacabana in in Rio de Janeiro where day-to-day operations are overseen by Sales Manager, Carolina Azevedo.
Supported by good office, warehouse and tooling facilities, Okeanus is able to provide installation, maintenance and technical support for all products and services offered. Beyond representing MacArtney, Okeanus also supports the offerings of other renowned industry operators such as Sequoia and WET Labs.
A win-win partnership
The story of MacArtney and Okeanus joining forces on the Brazilian market is also the story of meaningful strategic focus, vast potential and mutual benefits.
First of all, Okeanus will gain access to the entire portfolio of MacArtney products and systems, from subsea connectors and cables, through underwater telemetry and cameras to marine winch and handling systems. This marks a significant strengthening of the company's ability to quote large scale projects and provide integrated solutions. According to Laura Azevedo "the MacArtney range of solutions is a perfect match for as well our customers as our market". The optimism is shared by MacArtney Sales and Marketing Director, Marco MacArtney, who states that "Okeanus is already very successful in selling sensors and instruments to Brazilian offshore energy and ocean science clients - also the company is very visible and active when it comes to local industry events. I am confident that these tendencies will pick up even further pace through the partnership with MacArtney."
Connecting to subsea potential
As further testimony to the good reputation that Okeanus enjoys with the Brazilian oil and gas industry, the company holds a status as 'registered supplier' with Petronect (Petrobras pre-approved supplier). Within this context, MacArtney is keen to promote its diverse range of high quality offerings to this high-potential market, hereunder the TrustLink and TrustLink API ranges of subsea connectivity solutions for use in harsh and strictly regulated applications and environments.
The reserve replacement ratio was 146%. For each barrel produced, the company added 1.46 barrels to its reserves.
Ecopetrol's reserves/production ratio increased to 8.6 years. -- Of the outstanding total balance, 70.3% is crude and 29.7% is natural gas.
Since 2010, Ecopetrol has increased its reserves by 22%.
Ecopetrol (BVC: ECOPETROL; NYSE: EC; TSX: ECP) announces its proven reserves (1P, according to the international designation) of crude oil, condensate and natural gas owned by the company, including its interest in affiliates and subsidiaries, as of December 31, 2014.
Reserves were calculated based on U.S. Securities and Exchange Commission (SEC) standards and methodology, and 99% were audited by two different independent reserve engineering firms (Ryder Scott Company and DeGolyer and MacNaughton).
Proven net hydrocarbon reserves owned by Ecopetrol, including its interest in affiliates and subsidiaries, as of December 2014, were 2,084 million barrels of oil equivalent (mmboe), a 5.7% increase compared to 1,972 mmboe in 2013.
In 2014, Ecopetrol added 355 mmboe to its proven reserves, an increase over the 340 mmboe reported in 2013. Production for the year 2014 was 243 mmboe.
The reserve replacement ratio in 2014 was 146%, up from the 139% reported in 2013.. The reserves/production ratio increased to 8.6 years.
The increase in proven reserves is mainly the product of revisions at existing fields, and increased gas reserves.
94% of our proven reserves as of December 2014 (2,084 mmboe), comes from Ecopetrol S.A., while Hocol, Ecopetrol America and the participation in Equion and Savia Peru, contribute with 6%.
During the last 5 years, Ecopetrol increased its net reserves by 22% and achieved an average reserve replacement ratio of 150%.
Reserves as of December 31 of 2014:
Proven Reserves (1P)
Proven Reserves as of Dec 31 of 2013
Extension and discoveries
Proved Reserves as of Dec 31 of 2014
Building on the previous award by Total E&P UK of the contract for the Edradour Subsea Development, located approximately 75 km North West of Shetlands in the UK waters, Technip has been awarded an additional scope for the parallel development of the Glenlivet field located nearby.
The Glenlivet specific scope includes:
fabrication and installation of 12" production pipeline and 6" MEG(1) pipeline complete with a 2" piggy backed service line,
supply and installation of steel tube umbilical, manufactured at Technip Umbilicals facility in Newcastle, UK,
supply and installation of flexible tails from Flexi France, the Group's manufacturing plant in Le Trait, France,
fabrication and installation of pipeline end manifold, flowline end terminations, flexible tails and rigid well tie-in spools, as well as the installation of CPI(2) templates and manifolds, rock dumping and pre-commissioning.
The Group will leverage its unique vertical position in the subsea business:
Technip's operating center in Oslo, Norway, will execute the project in full synergy with the previously awarded Edradour project.
Vessels from the Group fleet will perform the installation in the summer seasons of 2016 and 2017.
The pipelines will be fabricated at Technip's spool base at Evanton, UK, and installed by Technip's vessel Deep Energy.
Umbilicals will be manufactured at the new Technip umbilicals facility in Newcastle, UK.
Knut Boe, President North Sea Canada, stated: "It is very good to see the benefits of the synergies between these two projects being realized by Total's award of this extra scope to Technip."
(1)MEG: Mono-ethylene glycol, used to control hydrate formation in production fluids.
(2)CPI: Company Provided Item
The world's leading ship and offshore classification society DNV GL welcomes the world's largest containership into class – the MSC Oscar. Delivered by Daewoo Shipbuilding & Marine Engineering (DSME) in Geoje, South Korea, in January the 19,224TEU vessel is already plying its trade on the new East-West service.
Not only does MSC Mediterranean Shipping Company's newest vessel set a size benchmark for containerships in terms of capacity, but it has also been designed with a number of efficiency enhancing features. For example, the engine has been optimized so that fuel consumption can be automatically controlled to take into account both speed and weather conditions and she has a broad optimal speed range for enhanced operational flexibility.
"For over forty years the MSC family has been growing – and so too has our fleet," Diego Aponte, MSC President and CEO, shares with us. "Our partnership with DNV GL continues to be an important part of our journey. Today we are proud to own the largest container vessel on the seas, the MSC Oscar, which adds to our solid reputation as a leading ocean carrier. She will soon be joined by sister ship MSC Oliver, built to the same demanding class regulations, which marks yet another milestone in our ongoing relationship with DNV GL."
MSC Oscar at seatrail. (Image care of MSC)
In less than twenty years the loading capacity of container vessels has more than tripled – with the length of the biggest vessels jumping from just over 300 to 400m during that time. MSC Oscar measures in at 395.4m long and 59m wide with a draft of 16m. Initially specified at 18,000TEU MSC Oscar was expanded during the building phase to add an extra tier above decks. The state of the art containership is unique in its wide beam design and use of torsion box and hatch coaming plates with steel plate thickness up to 100mm. The vessel is able to carry dangerous goods in holds, and approximately 1,800 reefer containers.
The vessel's cargo capacity has also been enhanced by implementing the RSCS class notation (Route Specific Container Stowage). The RSCS notation was developed by DNV GL to provide an even more efficient usage of cargo capacity with more flexibility for laden containers on board for specific routes while not compromising on safety.
"We are very pleased to mark this historic event with MSC, given our longstanding business relationship," said Jan-Olaf Probst, Global Ship Type Director at DNV GL – Maritime. "DNV GL is proud to have been a part of MSC's growth into a world leader in container shipping and we hope to be able to continue our successful cooperation for many years to come. MSC's decision to construct MSC Oscar and its upcoming newbuildings according to the DNV GL regulations reflects a clear focus for quality, maximum efficiency and an awareness of the need for a more sustainable industry."
The vessel's construction took only eleven months to be completed from steel cutting to delivery, which included extensive commissioning and sea trials. MSC Oscar is the first of the series of six ultra large containerships (ULCS) of Olympic Series. The remaining sister vessels of the series are expected to be completed by November 2015.
The cooperation between MSC and DNV GL stretches back to some of MSC's first vessels. And in 2005 the company's first entry into the large boxship market, the 9,000TEU MSC Pamela, was built to DNV GL class rules.
Today, MSC has 18 more vessels of over 19,000TEU on order. These deliveries could move MSC into the position of being the largest container shipping line in the world. The next of these vessels, MSC Oliver, also with DNV GL class, is expected for delivery in April.
DNV GL has been the class of choice for shipowners moving into the ULCS segment, with virtually all of the largest vessels being constructed according to DNV GL rules.
NYC-based PIRA Energy Group believes resource control policies remained in a holding pattern in 2014, despite the collapse in oil prices in the second half of the year. In the U.S., commercial stocks decline slightly. In Japan, crude runs stay high, crude stocks build, and products drew. Specifically, PIRA's analysis of the oil market fundamentals has revealed the following:
Lower Oil Prices Do Not Yet Affect Resource Control Policies
Resource control policies remained in a holding pattern in 2014, despite the collapse in oil prices in the second half of the year. Some marginal easing of contract terms did materialize in countries including Argentina, China, and the UK, but the majority of oil-producing countries maintained their existing policies toward foreign and private investment. Moreover, history suggests it would take a few more years of depressed prices to trigger a widespread move to ease contract terms and accommodate foreign investment.
Overall U.S. Commercial Stocks Slightly Decline
Last week's large crude stock increase was met for the first time this year with an even larger product stock decline, causing overall inventories to fall, for the first stock decline in 2015, albeit modest. Stocks fell a little bit more last year for the same week, pushing the year on year inventory surplus up. Crude oil accounts for 63 million barrels, or 45%, of the year on year surplus.
Japanese Crude Runs Stay High, Crude Stocks Build, Products Draw
Crude runs rose again and reached their highest level since mid-March of last year. Crude imports remained strong and crude stocks built. Finished product stocks drew with moderate draws for naphtha and kerosene, and lesser draws on the other major products. The indicative refining margin remained strong, with all the major product cracks firming.
Mont Belvieu NGLs Outperform
Strong heating demand drove a major draw in domestic propane stocks and was enough to keep propane prices unchanged on the week, despite a 5.5% decrease in crude prices. Butane prices gave up 1.6% as the end of blending season nears, while natural gasoline fell 1% week-on-week. Ethane was carried higher with natural gas, increasing 1.2¢ to 18.9¢/gal.
Ethanol Prices Rise
U.S. ethanol prices advanced the week ending February 13. Economics held relatively steady for the second straight week, with margins for PIRA's model plant based on Chicago values improving slightly, while those for PIRA's Iowa plant worsening a little.
The information above is part of PIRA Energy Group's weekly Energy Market Recap - which alerts readers to PIRA's current analysis of energy markets around the world as well as the key economic and political factors driving those markets.
According to the United States Geological Survey, the area above the Arctic Circle holds approximately 90 billion barrels of undiscovered, technically recoverable oil and an estimated 1,670 trillion cubic feet of technically recoverable natural gas. Nevertheless, due to it being relatively inaccessible, Arctic oil commands the highest breakeven prices, typically ranging between $70 and $120 per barrel. In light of the current low oil price environment, Arctic projects are at risk of being deferred or cancelled.
Statoil has already halted plans to drill in the Barents Sea this year and has also let several Arctic exploration licenses off Greenland expire. In addition, the company's Johan Castberg project could face delay for the third time. As announced in December 2014, Chevron has cancelled plans to drill in Canada's Arctic, and in Russia, Western sanctions have thwarted Rosneft's plans to explore Arctic waters. The Russian state-controlled oil company will not be able to continue drilling in the Kara Sea in 2015 as a result of sanctions prohibiting its cooperation with ExxonMobil; drilling may begin in 2016 at the earliest.
Though there is widespread negativity surrounding projects, there is hope for Arctic oil yet. After a two-year hiatus, Shell plans a return to Arctic oil drilling this summer, in Alaska's Chukchi Sea. The super major will however, need to win permits and overcome legal objections to do so. Shell has already spent $1 billion on preparations for the drilling work. Another company that aims to continue drilling in the Arctic is Lundin Petroleum. The Swedish independent operator will carry on exploring the Barents Sea for new fields despite current market trends and in favour of a long-term view which they believe will deliver value in the future. This year, Lundin plans to drill four exploration wells and OMV, Wintershall and Eni one each.
Hannah Lewendon, Douglas-Westwood London
Wood Group has appointed Michele McNichol to the position of chief executive officer (CEO) for Wood Group Mustang (WG Mustang), effective immediately. Michele succeeds Steve Knowles, who will retire from Wood Group on April 1, 2015.
Michele has more than 25 years of experience in the oil and gas industry and has been with WG Mustang since 2001. She was previously executive vice president, with direct responsibility for offshore, onshore, oil sands and pipeline operations worldwide. She has served as president of the upstream business unit and regional director for upstream operations across the Americas. Her tenure at WG Mustang includes high-profile industry projects, including serving as WG Mustang's project manager for BP Thunder Horse, the world's largest semi-submersible production facility.
Steve Knowles has led WG Mustang since 2006, focusing on growth and international expansion. As a result, WG Mustang now has operations in 15 countries across five continents.
"Wood Group Mustang has had great success under Steve's watch and we thank him for his strong leadership and commitment to WG Mustang's business and people," stated Bob Keiller, Wood Group CEO. "We look forward to Michele fulfilling the CEO role and bringing her perspectives, experience, leadership and energy to the job at a time when we see many challenges and opportunities ahead."
"I welcome the opportunity to take Wood Group Mustang into its next evolution, focusing on efficiencies and effectiveness to deliver the most competitive, creative solutions for our customers," stated Michele McNichol. "We will remain committed to our people-oriented, project-driven culture, which translates into highly effective teams."
Michele earned a Bachelor of Science degree in chemical engineering from Texas A&M University. She is a registered professional engineer in Texas and is a certified Project Management Professional.