Major Johan Sverdrup Contract Award

JohanSvedrupOn behalf of the Johan Sverdrup partnership Statoil will sign a detail engineering contract for the Johan Sverdrup development with Aker Solutions.

Worth NOK 4.5 billion the contract includes engineering and procurement management (EPma) until the scheduled production start in 2019.

The contract includes engineering and procurement management for the riser and processing platform topsides for the Johan Sverdrup field, phase one, in addition to hook-up work and gangways for the entire field.

Aker Solutions has so far been responsible for the front-end engineering of all four platforms that constitute the field center, a contract signed at the end of 2013.

"In light of the Johan Sverdrup project's ambitious progress plan having competent cooperation partners that share our goals is essential. Through the front-end engineering phase several hundred Statoil employees have been stationed at Aker Solutions. Together we have formed the basis for a seamless transition to detail engineering which will ensure a cost-effective progress plan," says Arne Sigve Nylund, Statoil's executive vice president for Development and Production Norway.

"The Johan Sverdrup field development is of great importance, not just to Statoil and our partners, but also to the supply industry and society. At plateau, the production from this field will account for 25% of the combined production on the Norwegian continental shelf. Although the prospects for the future of the field are very good maintaining the right focus on costs both in the construction and operations phase is essential," Nylund concludes.

"Targeted efforts have been made to cut costs and improve the efficiency of the deliveries. We are therefore pleased to see that Norwegian suppliers are competitive and that we can sign this contract with Aker Solutions. They have started their own improvement work and their deliveries on our integrated cooperation at Sverdrup are progressing well. This is an important contract for the project, and our expectations for the implementation are high", says Margareth Øvrum, Statoil's executive vice president for Technology, Projects and Drilling.

"As the EPma supplier Aker Solutions gets a key role in the Johan Sverdrup project, and is thus an important contributor to a successful project. We look forward to a close and good partnership," she ends.

This contract award is conditional on an investment decision for the Johan Sverdrup development in February 2015, and is subject to the approval of the Plan for Development and Operation for the field in Parliament in 2015.

NOIA Statement on SOTU: Missed Energy Opportunities Offshore

NOIAlogoNOIA-RandallLuthi highNOIA President Randall Luthi(photo) issued the following statement in response to President Obama's 2015 State of the Union Address:2015 State of the Union Address:

"While the President highlighted America's energy renaissance in his address to Congress tonight, he failed to note that the increase in the supply of American-made energy is occurring on state and private lands, not the federal lands under his control. The President was certainly right about one thing: low energy costs and gas prices have given American families and small businesses relief and have contributed to the recovering economy; however, the increased supply of oil and natural gas and lower energy costs have occurred in spite of, not because of, the Administration's energy policies.

"The President and his Administration have a prime opportunity in the coming months to take positive action to support a true all-of-the-above energy strategy that strengthens America's economy, creates thousands of new jobs, and enhances our energy and national security. This opportunity lies within the next 5-Year Outer Continental Shelf (OCS) leasing program. More than 85 percent of the OCS remains shuttered to exploration and development, including the entire Atlantic Coast, Pacific Coast, and the Eastern Gulf of Mexico. Changing the current policy to one that would open new areas of the OCS would be a positive step in the right direction toward a truly all-of-the-above energy approach that recognizes the opportunity in developing all offshore energy resources, including oil, natural gas and wind. In fact, another good American story is the progress toward harnessing the potential of offshore wind power, particularly in the Atlantic. NOIA supports all offshore energy sources, but it only makes sense for the Administration to devote similar efforts toward moving forward on offshore oil and natural gas leasing in new areas as well.

"Other nations, including Canada, Cuba, Mexico, Norway, Greenland, Brazil and Ghana, have recognized these opportunities and are exploring new offshore areas. A recent study shows that by opening the Atlantic, Pacific, and Eastern Gulf of Mexico, America could, by 2035, create more than 838,000 jobs annually, spur nearly $449 billion in new private sector spending, generate more than $200 billion in new revenue for the government, contribute more than $70 billion per year to the U.S. economy, and add more than 3.5 million barrels of oil equivalent per day to domestic energy production.

"As the President knows, this issue is not a partisan one. Congressional Democrats and Republicans and the vast majority of the American public have stated their support for the safe exploration and production of America's offshore energy resources. We have an opportunity to leave future generations with a stronger economy and strengthened national and energy security for decades to come, and NOIA urges the President to help put America on this course by putting forward a 5-year OCS leasing program that opens new offshore areas for energy exploration and development."

NOIA is the only national trade association representing all segments of the offshore industry with an interest in the exploration and production of both traditional and renewable energy resources on the nation's outer continental shelf. NOIA's mission is to secure reliable access and a fair regulatory and economic environment for the companies that develop the nation's valuable offshore energy resources in an environmentally responsible manner. The NOIA membership comprises more than 325 companies engaged in business activities ranging from producing to drilling, engineering to marine and air transport, offshore construction to equipment manufacture and supply, telecommunications to finance and insurance, and renewable energy.

Petrobras Makes Savings Through Unparalleled Pre-Salt Subsea Equipment Deployment Technique

SkandiSantosAt the end of last year, Petrobras deployed its first wet Christmas tree (equipment installed on a wellhead, composed of a set of remotely operated valves designed to control the flow of fluids such as oil, water and natural gas from a reservoir to the surface) using cables in the pre-salt area. The main change involved was the use of a subsea equipment support vessel (SESV) to install the equipment rather than a traditional drilling ship. This resulted in a time saving of approximately 10 days, generating a gain of more than US$5 million. The well on which the Christmas tree was installed using this technique, called 7-SPH-2D-SP, is located in Sapinhoá field, in the pre-salt layer of Santos Basin, at a depth of 2,130 meters.

The operation, which involved lowering the Christmas tree into position and installing it on the wellhead using a suspended cable, was carried out from an SESV using a subsea equipment guidance system. This installation technique replaces the use of drilling ships, which are much more expensive to charter. SESVs have some other major advantages in relation to traditional drilling ships. For example, using a drilling ship it takes around 10 hours to lower a "riser" (a kind of pipe) 1,000 meters in the open sea. Consequently, the time taken to lower a Christmas tree for installation on a well at a water depth of 2,300 meters is 40 hours on average. SESVs, on the other hand, can perform the same maneuver in less than four hours, due to the cable launch and return speed.

Petrobras had already used this technology at depths of up to 2,000 meters. Following engineering studies, some adaptations were made to the SESV Skandi Santos, enabling the vessel to install equipment at depths of up to 2,300 meters. After the success of this first experience, the use of SESVs has now been proven as a viable option for the pre-salt layer, and this will help reduce operating costs and times. Petrobras has now chartered a second SESV, which is being adapted for depths of up to 2,500 meters and which should start operating in the second half of 2016.

Sapinhoá field is operated by Petrobras (45%), in partnership with BG E&P Brasil Ltda (30%) and Repsol Sinopec Brasil S.A. (25%).

New Quality Acreage on the Norwegian Continental Shelf

StatoilIn the Awards in Predefined Areas 2014, Statoil has been awarded interests in 15 licenses on the NCS, 8 of those as operator. Today, the government has also announced the blocks in the 23rd concession round.

Drill rig Transocean Barents in the Barents Sea. (Photo: Harald Pettersen)

"These are very positive news for Statoil and the whole industry. Access to new quality acreage is essential to ensure continued exploration activity and value creation on the NCS," says Irene Rummelhoff, senior vice president for NCS exploration in Statoil.

"We are pleased with the APA 2014 award of new acreage in mature areas enabling us to prove additional time-critical resources around existing production hubs. We also welcome the announcement of blocks in the 23rd concession round, in particular the new acreage in the Barents Sea South-East which is an important contribution to further exploration in frontier areas of the NCS," says Rummelhoff.

Statoil is positive to the work the authorities are now initiating in order to expand the knowledge base related to sea ice data.

In APA 2014, Statoil has been awarded new licenses in all three NCS provinces:

North Sea
• 80% ownership and operatorship in PL783 and 20% ownership in PL782S west of Balder. This is new acreage with significant volume potential on the eastern flank of the South Viking Graben in a prolific oil prone area. The location and size of the main prospect makes it a very interesting candidate in Statoil's portfolio. PL782S is stratigraphically split and limited upwards by Base Cretaceous.

• 50% ownership and operatorship in PL772. This is new acreage in a prolific area to the north of the King Lear discovery.
• 51% ownership and operatorship in license extension PL025B.
• 30% ownership in license extension PL044C.
• 62% ownership and operatorship in license extension PL046E.
• 50% ownership and operatorship in license extension PL072E.
Norwegian Sea

• 40% ownership and operatorship in PL794 and 20% ownership in PL795. These are exciting licenses in the vicinity of Njord with prospectivity of various play models.
• 40% ownership and operatorship in PL796. This is a new near infrastructure license east of Mikkel. Acreage around Njord and Mikkel is important for feeding existing infrastructure with new volumes as tie-in developments. We also see significant upside potential in the area.
• 20% ownership in PL798 and PL799. This is promising gas prone acreage west of Skarv with follow-up possibilities.
• 42% ownership and operatorship in license extension PL159E.
• 50% ownership in license extension PL127B.
Barents Sea

50% ownership in PL803 - a new license in the Tromsø basin. We see exciting opportunities in the area, particularly in some of the more under-explored plays.

Repsol Completes Its Exploration Well in the Canary Islands

rowan-renaissance-canarias--644x362• The samples obtained in the exploratory survey known as Sandia confirmed the existence of gas, although without the necessary volume nor quality to consider future extraction.
• The Rowan Renaissance drillship will return to Angola to continue with Repsol's exploration program in that country.
• Around 750 professionals from more than 50 companies, some based in the Canary Islands, have worked on the research project, applying the maximum safety and environmental protection standards.

Repsol has completed the exploratory well, which began on 18 November 2014 in the Atlantic Ocean about 60 kilometers from Lanzarote and Fuerteventura, to analyze the possible existence of hydrocarbons. The analysis of samples obtained showed the presence of gas (from methane to hexane) but without the necessary volume nor quality to consider future extraction.

The exploratory survey confirmed that oil and gas have been generated in the basin, although the deposits found have been saturated with water and the hydrocarbons present are in very thin, non-exploitable layers.

No further exploratory activity will be carried out in this area, and the Rowan Renaissance dynamically-positioned drillship will return to Angola to continue Repsol's exploration campaign in that country.

On 11 January, a total depth of 3,093 meters (882 meters of water depth and 2,211 meters of subsoil) was reached and the collection of data on the traversed geological formations was completed.

The well will be sealed throughout the next week under the strictest safety protocols, the same that have been applied during the entire exploratory drilling campaign.

Around 750 professionals from over 50 companies have worked on the research project, applying the highest safety and environmental protection standards at all times. At the start of this campaign, Repsol estimated the possibility of finding hydrocarbons at between 15% and 20%. The company carried out the campaign in the belief that a discovery of hydrocarbons would be beneficial for the Spanish economy.

The excellence of all operations related to this campaign was achieved thanks to the deployment of top professionals – not only from Repsol, but also from other contracted companies, some of them from the Canary Islands – and the use of cutting-edge technology such as the Rowan Renaissance dynamically-positioned UDW drillship, which was supported by four other vessels.

Repsol has great experience in offshore exploration. The company's reserve replacement ratio (the amount of reserves added by the company compared to the production) was 204% in 2012 and 275% in 2013, among the highest in the industry.

Eni Announces Production Start-Up at Lucius Oil Field in Gulf of Mexico Deepwater

Eni owns a working interest of 8.5% in the field operated by Anadarko and holds also a 30% working interest in the nearby Hadrian South gas field.

Eni announces the production start-up from the Lucius Field in the Gulf of Mexico deepwater, 240 miles south of the Louisiana coast, United States.

Lucius-First-Oil-1Photo courtesy: Anadarko

Lucius, which is in approximately 7,000 feet of water, has a production secured through 6 subsea wells tied back to a moored production handling spar connected to the shore via dedicated oil and gas pipelines. The spar has a design capacity of 80,000 barrels of oil per day (bopd) and 450 million standard cubic feet per day (MMscfd) of gas. Once all wells are ramped up, Eni's share of the Lucius daily production is expected to be approximately 7,000 boed.

The Lucius field was discovered in November 2009 and the subsequent development project was sanctioned in late 2011. Eni owns a working interest of 8.5% in the field operated by Anadarko. Eni also holds a 30% working interest in the nearby Hadrian South gas field operated by ExxonMobil, which is a subsea development tied back to Lucius spar, and is expected to produce 300 MMscf/d at plateau, with startup expected in early 2015.

The Greater Hadrian area, which includes the Lucius and Hadrian South fields, represents a core asset for Eni's future production, since it is expected to provide approximately 20,000 boed equity of combined production at its peak.

In the US, Eni owns interests in 200 leases in the Gulf of Mexico and 530 leases in unconventional plays (shale gas and shale oil) onshore Texas. In addition, Eni owns interests in 100 leases in the North Slope of Alaska, which include 100% of Nikaitchuq and 30% of the Oooguruk oil fields.

Eni's current net production in the US is approximately 100,000 boed, 75% of which is operated

Acteon Creates Clarus Subsea Integrity as new Group Company

Clarus Subsea IntegrityActeon has announced the start-up of Clarus Subsea Integrity Inc., a new Group company created from 2H Offshore's subsea integrity business segment. Based in Houston, USA, the new company will commence operations in January 2015 and plans to expand globally.

Paul Alcock, executive vice president, Acteon, said, "Clarus is a service with its own brand identity, which will broaden the strong integrity capability developed at 2H over the past ten years. Clarus will support and enhance the subsea mechanical and electrical infrastructure segment of Acteon's global business and will support growing Opex-oriented markets, particularly in the global context of ageing deepwater fields."

Clarus will be led by John MacDonald and Dharmik Vadel, who previously managed subsea integrity activities within 2H Offshore. Vice president, MacDonald, said, "Clarus aims to become a unique pacesetter in global subsea integrity engineering by focusing on the essential operator objectives of compliance, uptime and efficiency. Clarus provides engineering solutions by efficiently interpreting data to help operators make better-informed decisions in operating their assets. Our goal of providing clarity to clients inspired the name we have chosen: Clarus, which is the Latin word for 'clear.'"

Clarus service offerings will include data management, risk based integrity assessment, anomaly management, fitness for service, subsea condition monitoring, key performance indicators and corrosion analysis. The initial subsea equipment specialty focus will grow to include integrity of all in-water equipment including hull and moorings.

Claxton Increases North Sea’s Largest Surface Riser Stock for Ultra Heavy-Duty Jackups

Claxton-jackup-drilling1Claxton, an Acteon company, is extending its large surface riser inventory to meet operators' needs as more heavy-duty jackup rigs enter the North Sea. The company, which already has more than 560 feet of rapid call-off surface riser stock, is adding new joints in the size and pressure required to interface with the blowout preventer (BOP) stacks on the new rigs.

Martin Jolley, vice president sales and commercial, Claxton, said, "Soon there will be six ultra heavy-duty jackups operating alongside the 44 other jackups in the North Sea. The new rigs all require surface risers with 18.3/4" ID and 15 k pressure ratings. We are bolstering our inventory in this area to support our clients.

"Our surface riser supply capability has always been broad; we cover 13.3/5" through to 21.1/4" internal diameter options, which are available in a range of low and high pressure options up to 15 k ratings. Our new 18.3/4" 15 k stock will further strengthen our position as a leading supplier of surface risers for the North Sea and beyond.

"Claxton has a broad range of supporting rental equipment to manage riser interfaces, so we're confident that our surface riser packages and rapid mobilisation capability will continue to meet the needs of operators and drilling contractors. Claxton's full riser capability covers subsea and surface risers, riser handling and tensioning. The complete range of bore, pressure and system options we supply is unmatched in the North Sea."

Claxton provides the vast majority of well control interfaces, with more than 4,000 surface riser and associated range of rental adaptors, connectors, handling tooling and ancillary items.

Working alongside sister riser businesses in the Acteon group, Claxton's surface and subsea riser supply capability is used by operators in the North Sea and beyond. Claxton supplied the first 10,000 psi subsea riser system to a North Sea operator and delivered a complete riser system for the deepest waters ever tackled from a jackup, in Statoil's Gullfaks field.

MacArtney and Alakaluf Set Sail for Chilean Underwater Venture

Alakaluf Map1The MacArtney Group is pleased to announce the entry of an exclusive representative agreement with Alakaluf Ltda - a leading marine technology provider based in Chile. The agreement represents another important leg in MacArtney's ongoing thrust to increase its local presence in all South American markets for underwater technology.

Alakaluf Ltda.
Founded in 1994, in Punta Arenas, by marine biologist and M. Sc. Oceanography Sergio Andrade, Alakaluf Ltda. has achieved extensive expertise in supplying marine scientific and renewable energy solutions for all relevant industries and operators in Chile. Moreover, Alakaluf also supplies solutions for regional oil and gas in the Magellan Strait, underwater mining, coastal tourism, seaports, aquaculture and fisheries applications.

One-stop marine technology
With additional warehouse facilities and offices located in Santiago, Valparaiso and Concepcion, Alakaluf has grown to become a major vendor of marine solutions across Chile. During its existence, Alakaluf has developed several strategic alliances with leading providers of underwater equipment, including WET Labs, Rockland scientific, Sea Bird and many more. Through the agreement with MacArtney, Alakaluf will not only be the regional representative for SubConn® connectors, but also significantly extend its capacity of providing more full-scale solutions all the way from surface to seabed. Specifically, MacArtney winch handling solutions, telemetry and comprehensive connectivity solutions coupled with the multitude of sensor and data acquisition options already offered, will aid to render Alakaluf a true one-stop supplier of marine technology. Meanwhile, MacArtney is bound to benefit from the vast network of contacts and local expertise held by Alakaluf.

Tecnologías y Ambiente
Translatable to 'Technology and Environment' - the slogan of Alakaluf grants evidence to the central role that renewable energy technology plays within the company. To promote renewable energy in Chile, Alakaluf has partnered with several leading global developers - especially within the field of tidal energy. "Together - the depletion of fossil energy resources, the advancement of non-conventional marine energy technology and the increase in energy demand from coastal communities and the industry enable a viable increase in the development of renewable projects in Chile" says Alakaluf CEO, Sergio Andrade.

This focus area is hugely interesting to MacArtney, which has participated in several pioneering and industry scale projects with non-conventional marine renewables over the past decade. "With our rugged and advanced GreenLink inline terminations, subsea hubs and general connectivity solutions, we hold the capacity to effectively interconnect several tidal, wave or wind units and safely transfer the harnessed energy back to shore. We are confident, that in close cooperation with Alakaluf and its other partners, we can create great results for- and boost further advancement of - marine renewables in Chile" Says MacArtney Sales and Marketing Director, Marco MacArtney.

CGG’s Multi-Physics Business Line Now Fully Operational

CGGlogo copyCGG has confirmed that its new Multi-Physics Business Line is now up and running within its Acquisition Division. The new Business Line combines all of CGG's Airborne capabilities with its GravMag Solutions business.

The Multi-Physics Business Line offers clients timely and cost-effective solutions encompassing gravity, magnetic, electromagnetic and radiometric surveys with the most comprehensive and advanced range of airborne fixed-wing and helicopter systems.

Multi-Physics is also able to leverage CGG's decades of expertise in applying these geophysical methods offshore with gravity and magnetic data acquisition from a broad range of marine platforms and onshore with particular specialization in near-surface Multi-Physics to enhance onshore seismic imaging.

The internationally renowned interpretation geoscientists working for this new Business Line integrate multi-physics data with geologic, seismic and well data to add insight to the natural resource evaluation process. They develop and commercialize specialized software to process, invert and interpret potential field and electromagnetic data which are then used to model a large variety of geologic environments. These capabilities extend to the delivery of specialized magnetic models for use in geo-steering by the drilling industry.

The Business Line's multi-client library of gravity and magnetic data also helps to further reduce exploration risk by contributing to an integrated understanding of basin architecture and hydrocarbon potential in most of the world's petroleum basins.

Benoit Ribadeau Dumas, Senior Executive Vice President, Acquisition, CGG, said: "Our creation of this new Multi-Physics Business Line was a logical next-step for CGG as a fully integrated geoscience leader specializing in a unique combination of geological and geophysical techniques. We believe it offers our petroleum, mining, land management and governmental clients a unique resource of capabilities, experience, knowledge, software and data library, all available from a single source."

Latest Damen Shipment Guarantees Short Delivery Times

Damen-shipment-1To maintain the continuous availability of its wide range of built-for-stock vessels, Damen Shipyards Group is currently shipping a diverse cargo of 16 new pontoons and tugs, as well as numerous modular barges, from China to the Netherlands. The latest shipment displays the efficiency of Damen's global construction and transport network and represents a major cooperation between its various product divisions and numerous local partners in China.

To perform the shipment, Damen mobilised ZPMC's Zhen Hua 28. The 232-metre semi-submersible vessel left Nantong, China at the beginning of January and is due to arrive in Rotterdam at the beginning of March. The whole process exhibits the significant cooperation with Damen's local Chinese partners such as Yahua Shipyards, Damen Yichang Shipyard, Damen Changde Shipyard, SHBM and local Nantong and Taicing Authorities.

The cargo includes eleven Stan Pontoons® of six different models (SPo 9127, SPo 8916ICE, SPo 7120, SPo 6020, SPo 6316 and SPo 2116) and numerous modular barges. The fully ballastable Stan Pontoon® 9127 is worthy of particular consideration: also known as 'North Sea Barge', its large deck with high loading capacity and predesigned plug and play options make it perfectly suited for ocean going transport and offshore projects. Two examples of this benchmark pontoon will be available for purchase from March – illustrating Damen's successful formula of building for stock to ensure minimum delivery times.

As well as standardised built-for-stock models, the Zhen Hua 28 is also carrying a custom-built spill pontoon that will be delivered to its owner just a few months after ordering. Spill pontoons are utilised to prevent spillage of dry bulk products during transhipment by crane barge. Damen's Pontoons & Barges Division designed this so-called Spill Pontoon to specific customer demands in answer to stricter European port regulations.

Topping off the diverse shipment are several workboats – including Stan Tugs 1205, Stan Launches 1305 and two large Shoalbusters.

Damen is experiencing significant growth in sales of its pontoons and barges – the past few months have witnessed deliveries around the world to customers in five different continents. To meet the demand, there are two further shipments of more than 20 pontoons planned for later this year.

Constructed in accordance to Lloyd's Register regulations, Damen's pontoons and barges can be designed to client-specific demands such as customised crane barges and various hopper barges. All models are prepared for plug and play installation of options like pumps and generator sets and can be commissioned within a very short time.

With a considerable part of Damen's broad portfolio directly available from stock, clients can take advantage of the company's presence in the Middle East, West Africa and China. Final construction and outfitting can be performed in short time scales to guarantee ultra-short delivery times. Local construction is also possible in combination with Damen Technical Cooperation.

EFC Group Completes $2.2m Contract with Chinese Shipyard

EFC Group, a leading designer and manufacturer of instrumentation, monitoring, control and handling systems for the global oil and gas industry, has completed a £1.3million {$2.2million} contract to design and build a BOP and diverter control system for China based Dalian Shipbuilding Industry Offshore Co (DSIC Offshore).

The system is installed onboard DSIC's new build jack up drilling rig, JU2000E-13. DSIC is supplying the rig to drilling contractor Apexindo, where it will be known as 'Tasha'.

Bob Will, CEO at EFC Group, said: "This is a major contract for EFC, continuing our growth plan to become world class leader in control systems for both rig upgrades and new builds alike. It is also a significant project that's been supported by our manufacturing base in Forres which gives us the additional capacity required to undertake projects of this scale.

"EFC aims for this to be the start of a strong relationship with DSIC. In the new build market as a whole, we know there is a high demand on shipyards and their current vendors to delivery on time and on budget and we have invested in our facilities and resources to support this."

EFC 101EFC's Surface BOP HPU can be supplied modular or as one integrated unit to fit rig requirements.

The BOP and diverter control system delivers a robust solution with central architecture on a fiber optic network. These systems are used to control the blowout preventer to seal, control and monitor the well and are critical for ensuring the safety of the crew, the rig, well integrity and the environment.

The EFC Group designed system provides full functionality from two or more locations, typically local hydraulic control, drillers' electric and toolpushers' electric remote panels. A solenoid valve enclosure is included to provide an interface from the electric signals from the remote panel and provide pneumatic or piloted hydraulic signals to the BOP control actuators. A hydraulic power unit can be included as part of system supply, or it can be limited to hydraulic control skid only.

Representatives from Apexindo visited EFC Group's base in Forres where the system was built during its Factory Acceptance Test (FAT).

Kenneth Gibbs and Jean Wojcik at Apexindo, said: "We are pleased that DSIC chose EFC Group to supply its BOP controls technology as part of the rig package. The high quality of the equipment used and the stringent safety levels that EFC Group works to were important factors for us."

EFC Group designs and manufactures BOP control systems for both surface and subsea stacks. BOP control projects can both update and convert controls systems, so they can be readily supported in the future as well as meet API 16D compliance. Surface BOP control systems can also be API 16D monogrammed.

PIRA Energy Group's Weekly Oil Market Recap for the Week Ending January 18th,

piraNYC-based PIRA Energy Group reports that federal activity to regulate fracking has picked up in December and so far in 2015. In the U.S., record weekly commercial stocks were reported. In Japan, crude runs eased and crude stocks built. Specifically, PIRA's analysis of the oil market fundamentals has revealed the following:

Fracking Policy Monitor
Though slowed by the desire to avoid contentious issues ahead of November elections, federal activity to regulate fracking has picked up in December and so far in 2015. The Obama Administration announced the next steps to implement its Methane Strategy, seeking to reduce methane emissions in the oil and gas sector by 40-45% from 2012 levels by 2025. On the state level, induced seismicity continues to be an emerging issue. Ballot measures in the November election seeking to ban fracking had mixed results across Ohio and California, but notably passed in Denton, Texas.

Record Weekly Commercial U.S. Stocks Reported
Total commercial stocks built last week to the highest weekly total ever reported. With a sharp decline in crude runs, crude stocks built, the four major refined products built, and all other oils drew. With a total commercial stock draw this week last year of 10.3 million barrels (-7.7 crude, +5.0 four major refined products, -7.6 all other oils), the year-over-year commercial stock excess ballooned out 20.5 million barrels to 112.6 million barrels, or 10.8%.

Japanese Crude Stocks Build, as Crude Runs Ease, while Finished Product Stocks Draw
Crude runs eased fractionally on the week and crude imports remained sufficiently high to build stocks. Finished product stocks drew, largely on lower naphtha and jet-kero stocks. Gasoline demand was modestly lower and stocks built slightly. There was a minor draw on gasoil stocks, as demand rebounded from low levels and incremental exports rose. Kerosene demand was higher and stocks resumed drawing. Indicative refining margins remain relatively strong.

A Snapshot of the Positions on NYMEX Crude Oil Options Provides Insight
A snapshot on NYMEX WTI option exposure provides insight as to market protection levels, time coverage, and market depth. The option open interest on WTI, traded on the NYMEX, as of January 13th was 1.81 million "call" contracts (the option to buy crude oil at a specific strike price), and 1.47 million put contracts covering delivery from February 2015 through December 2022. Some 92% of total put contracts outstanding are in 2015, while 2016 accounts for only 7%.This is consistent with hedging positions of shale crude producers.

Low Oil Prices Are Bringing Down Global Inflation, Creating Room for Policy Easing
Headline inflation rates have come down sharply in developed economies because of low oil prices. Emerging world inflation has also broadly decelerated. The global low-inflation environment has created room for policy easing in key economies, most notably in the euro area. But the expected announcement of quantitative easing by the European Central Bank next week has also created unanticipated volatility in the foreign exchange market this week.

Ethane Cracker Margins Suffer
Inexpensive propane prices relative to ethane continue to make C3 the most economical petrochemical cracker feedstock in the United States. At $0.43 per lb ethylene produced, C3 remains just over 10¢/lb better than ethane, per PIRA calculations. Butane's cracking margin, which was nearly equivalent with propane over the last few weeks, fell. Strong ethane prices relative to LPG, should they persist, complicate plans for the construction of at least six world scale ethane crackers on the USGC by 2020.

Ethanol Prices Decline Again
U.S. ethanol prices stumbled to a six-year low the week ending January 9, following petroleum values rather than corn costs. The weakest demand in about a year and the highest inventories in about 22 months also put downward pressure on prices.

Ethanol Stockpiles Jump to the Highest Level in Two Years
U.S. ethanol Inventories built by nearly 1.4 million barrel the week ending January 9, reaching 20.2 million barrels for the first time since February 2013. This was the largest week-on-week gain ever reported.

Fuel Price Subsidies: Crude Price Weakness Accelerating Moves to Market Pricing
Since PIRA's August 2014 update on fuel prices and subsidies, oil prices have collapsed, from an August average of $102/Bbl to below $50/Bbl. Several governments have taken advantage of the weak price environment and removed subsidies for major petroleum products, including Indonesia, Malaysia, and India. In most cases, the move away from a fixed (and previously subsidized) price coincided with a retail price cut, reducing the risk of political backlash. However, these policy changes will affect just 5% of global gasoline and diesel demand in 2015. Most oil importers now price major petroleum products at or near market levels, while the majority of subsidies remain in large oil-exporting countries, where price hikes do not appear imminent for political reasons.

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.

DW Monday January 19, 2015: Offshore Drilling Contractors Facing Uncertainty

Dougl-west.MondayCompanies in the deepwater drilling market have lost more than half of their value over the last year; Transocean, Seadrill, ENSCO and Diamond are currently priced 56% lower on average compared to January 2014 in line with the decrease in oil prices. While these sharp falls in share prices reflect similar trends across the oil and gas industry, the number of active ultra-deep water rigs have remained high with 171 units contracted versus 175 units last January. Dayrates have also increased slightly from an average of $470,000 to $485,465, though this is largely a result of contracts signed before the fall in oil prices.

Concerns about drilling contractors' backlogs and their ability to put their most expensive assets to use are well founded with operators announcing decreases in capital expenditure. However, based on Douglas-Westwood's offshore drilling forecast, there are still plenty of wells to be drilled if the 2015 oil prices average between $50-70bbl. Total wells drilled could be expected to increase by 17% by 2020 with deepwater wells growing at 32%, despite the current price environment.

A fundamental issue is not only a lack of demand, but one of the industry's own making. The recent build cycle has resulted in a sharp growth in supply that will need time to be absorbed by expected long-term growth in demand. Like other subsectors of the offshore marine industry such as offshore vessels and production assets, supply not just demand will determine the future direction of the offshore drilling market.

Kian Zi Chew, Douglas-Westwood Singapore
+65 6635 2004 or

Eni Awarded Two Exploration Licenses in Norway

enilogoEni was awarded on Tuesday, January 20, 2015, by the Ministry of Petroleum and Energy two exploration licenses in the Barents sea and in the North Sea as part of the Norwegian Award in Pre-Defined Areas (APA) 2014. With these awards, Eni confirms its long-term strategy on the Norwegian continental shelf, in particular in the Barents Sea.

San Donato Milanese, 20 January 2015 - Eni was today awarded by the Ministry of Petroleum and Energy two exploration licenses in the Barents sea and in the North Sea as part of the Norwegian Award in Pre-Defined Areas (APA) 2014.

Following the award, Eni is now operator of the area PL 806, in the Barents Sea, with a 40% stake, while E.ON E&P, Edison International and Petoro are partners with 20% respectively.
In the North Sea's area PL 044 C Eni is partner with a 13,12% stake, ConocoPhillips as operator with 41,88% stake, Statoil with 30% and Total with 15%.

With these awards, Eni confirms its long-term strategy on the Norwegian continental shelf, in particular in the Barents Sea.

Eni has been present in Norway since 1965 and is currently producing about 112,000 boe per day through its subsidiary Eni Norge.

Noble Energy Announces Madison Exploration Results in the Gulf of Mexico

NobleLOGONoble Energy, Inc. (NYSE: NBL) has announced that the Madison exploration well in the Gulf of Mexico reached the targeted Upper and Middle Miocene objectives and did not encounter commercial hydrocarbons. Drilled to a total depth of 16,859 feet on Mississippi Canyon 479, the well has been plugged and abandoned and the drilling rig has been released. Noble Energy operated the well with a 60 percent working interest and Stone Energy Offshore, LLC had the remaining 40 percent.

Noble Energy is a leading independent energy company engaged in worldwide oil and gas exploration and production. The Company has core operations onshore in the U.S., in the DJ Basin and Marcellus Shale, in the Gulf of Mexico, offshore Eastern Mediterranean, and offshore West Africa. Noble Energy is listed on the New York Stock Exchange and is traded under the ticker symbol NBL. Further information is available at

Oceaneering Announces Hess Stampede Project Umbilicals and Distribution Hardware Contract Award

OceaneeringlogoOceaneering International, Inc. (NYSE:OII) announced that it secured a contract in December 2014 from Hess Corporation (NYSE: HES) to supply the umbilicals and umbilical distribution hardware for the Stampede Project located in the Green Canyon area of the U.S. Gulf of Mexico. This hardware will be used to transmit hydraulic control fluids, chemicals, and electrical power signals to operate and monitor subsea wells and manifolds.

The order is for electro-hydraulic, steel tube umbilicals totaling approximately 14.3 kilometers (8.9 miles) in length, umbilical termination assemblies, hydraulic and chemical distribution units, electrical distribution units, flying leads, and junction plates. Oceaneering plans to manufacture the umbilicals at its plant in Panama City, Florida and to manufacture the distribution hardware at its facilities in Houston, Texas. Umbilical production is expected to commence in the second quarter of this year, with delivery scheduled for mid-2016.

Cal Dive International Investor Update Issued by BrokerBank Securities, Inc.

caldiveCal Dive International, Inc. (OTCMRKTS: CDVI) is a marine contractor that provides manned diving, pipelay and pipe burial, platform installation and platform salvage services to a diverse customer base in the offshore oil and natural gas industry. CDI offers its customers services on an integrated basis for complex offshore projects. Its global footprint encompasses operations on the Gulf of Mexico, Outer Continental Shelf (OCS), the North-eastern United States, Latin America, Southeast Asia, China, Australia, the Middle East and the Mediterranean. As of December 31, 2011, the Company owned a fleet of 29 vessels, including 19 surface and saturation diving support vessels, six pipelay/pipebury barges, one dedicated pipebury barge, one combination derrick/pipelay barge and two derrick barges. In June 2014, Cal Dive International Inc. sold its United States Gulf of Mexico shallow water surface diving fleet to privately held company.

The company's stock lost more than 90% of its value during 2014, and was priced at $0.07 on 31st Dec, 2014. The stock price drifted downward steadily for years due to a downturn in drilling activity following the Maconda disaster in the Gulf which left the company with underused capacity. Cal Dive International's stock was delisted from NYSE at the end of October 2014, then made a hit on OTCBB with high trading volume. The stock price had been highly volatile for the rest of 2014.

Since the beginning of 2015, Cal Dive International has been making a spectacular move up on accelerating volume. Also, short-term moving average crossed long-term moving average from the below on January 12th, which seems to indicate ascent in stock price in the near term. However sustainable share rally has be supported by fundamental improvements in the company and oil industry, which cannot be seen in the near future.

One of the firm's main catalyst for growth is the deregulation in the Mexico Gulf. Cal Dive International is in a prime position to take advantage of deregulation in the Mexican oil and gas market as they are already working for Pemex, the state-owned oil Company, which is set to be privatized as part of deregulation.

Cal Dive International estimates to have its Q4 2014 Earnings Release on the 2nd March, 2015.

For a more detailed research report with analyst comments and recommendations on CDVI please follow the link. There is no cost obligation to view the analyst brief:

Jee to Host Global Subsea Pipeline Integrity Management Webinar

Webinar to share lessons learned in subsea pipeline integrity management

Leading independent subsea engineering and training company, Jee Ltd, will draw on its extensive integrity management experience to host a free-to-attend webinar exploring the topic on 24 February 2015.

Grant-Adam-Jee-LtdAvailable to a global audience, the webinar - 'Lessons learned in subsea pipeline integrity management' - will be presented by the head of Jee's integrity management discipline and Principal Engineer, Grant Adam (photo), and will give participants an overview of subsea pipeline integrity management best practice.

A chartered engineer with more than 20 years oil and gas industry experience, Mr Adam has an in-depth knowledge and technical understanding of integrity management and its associated areas, including internal and external inspection. His experience includes creating riser inspection strategies, inspection tool and stuck pig contingency plans, and corrosion management strategies.

Mr Adam said: "At a time when subsea assets are maturing and reaching the end of their design lives, good integrity management has never been more important. This webinar provides an opportunity to hear how to safely maximise the profitability of mature assets through robust life extension processes, and how integrity can be continued into the next phase – decommissioning.

"Our industry faces many challenges which we can all tackle by sharing our experiences, to help improve industry standards and best practice. At Jee, we are in a strong position to share the lessons learned from our extensive experience working with a wide range of clients including major IOCs and vessel operators."

The webinar will give participants an insight into the foundations of subsea pipeline integrity established during the design phase, and learn how to develop the key processes and systems that ensure safe, reliable operation. It will review the primary risks threatening subsea pipeline integrity today and discuss the management and mitigation measures that can be employed to reduce these to as low as reasonably practicable.

This is part of an ongoing series of webinars being presented by Jee, in-line with the company's ongoing commitment to continuous development and knowledge sharing. To benefit from Jee's 26 years of subsea engineering experience and to register online for this free webinar, please visit