Saipem Awarded New EPCI Contract by ExxonMobil for Development of the Offshore Field “Liza” in Guyana

4SaipemSaipem has been awarded a new EPCI contract for the SURF package of the proposed Liza project operated by Esso Exploration and Production Guyana Limited, an affiliate of ExxonMobil. Located approximately 120 miles offshore Guyana at a water depth of 1,800 meters, the Liza field is a subsea development with a recoverable resource estimate of over 1 billion oil-equivalent barrels.

Saipem will perform engineering, procurement, construction, and installation of the risers, flow lines, and associated structures and jumpers. The award also includes transportation and installation of umbilicals, manifolds, and associated foundations for the production, and water and gas injection systems. Saipem will deploy its flagship vessels FDS2 and the Normand Maximus to execute the works which will commence in 2019.

Commenting on the award, Stefano Cao, Saipem CEO, said:

“We are delighted to have secured this award from an important client such as ExxonMobil. A further reason for our satisfaction is the opportunity to be among the first operators in the oil & gas industry to work in an emerging country like Guyana. This is an important milestone for Saipem and an exciting challenge in a frontier area”.

Saipem has also acquired new contracts and change orders of contracts currently underway in the North Sea and West Africa.

The new acquisitions worth a total of 500 million USD.

Eni Starts Production from Jangkrik Project, Deep Offshore Indonesia

Eni has started gas production from the Jangkrik Development Project, in deep water offshore Indonesia, ahead of schedule. The Project comprises the gas fields Jangkrik and Jangkrik North East, located in the Muara Bakau block, Kutei basin, in the deep water of Makassar Strait.

Production from ten deep-water subsea wells, connected to the newly built Floating Production Unit (FPU) “Jangkrik”, will gradually reach 450 million standard cubic feet per day (mmscf/d), equivalent to 83,000 barrels of oil equivalent per day (boed). The gas, once processed onboard the FPU, will flow via a dedicated 79km pipeline to the Onshore Receiving Facility, both built by Eni, and then through the East Kalimantan Transportation System, finally reaching the Bontang gas liquefaction plant.

5ENI visore jangkrik 480Gas volumes from Jangkrik will supply the local domestic market as well as the LNG export market, providing a significant contribution to Indonesia’s current energy requirements and future economic development.

Production start-up within three and a half years from the sanctioning of the project is further confirming Eni's capabilities in fast-track developments. It is a benchmarking record in the industry and a major step forward for Eni's activities in Indonesia.

«We are very proud of what we have achieved with the Jangkrik Development Project», said Eni CEO Claudio Descalzi. «The completion of the project and the start-up of production ahead of schedule further confirm Eni’s strategy and global capabilities. Furthermore, it provides the opportunity for the Jangkrik Floating Production Unit to become a hub for the development of our nearby gas discovery Merakes (Eni 85%, Pertamina 15%), which could start production within the next two years. We will consolidate our near field exploration strategy and operating model and maximize the integrated development of our projects also in Indonesia».

Eni is the operator with a 55% stake of the Muara Bakau PSC through its subsidiary Eni Muara Bakau B.V. The other partners are ENGIE E&P (through its subsidiary GDF SUEZ Exploration Indonesia BV) with 33.334% and PT. Saka Energi Muara Bakau with 11.666%. All the activities are carried out in coordination with SKKMigas, the entity representing the Government of Indonesia.

Eni has been operating in Indonesia since 2001 and currently has a large portfolio of assets in exploration, production and development. Production activities are located in the Mahakam River delta, East Kalimantan, through the participated Company VICO Ltd (Eni 50%, Saka Energi 50%) operator of the Sanga Sanga PSC that provides an average equity production of 14,000 barrels of oil equivalent per day.

Semco Maritime Wins Order for Culzean Hook-Up

Semco Maritime to participate in the preparation (hook-up) of Maersk Oil UK’s new gas field in the UK sector of the North Sea when the production units arrive from Singapore in the summer of 2018. The largest order ever for Semco Maritime’s Aberdeen office. Maersk Oil UK has selected Semco Maritime to participate in the installation and preparation (hook-up) of the new gas production field Culzean, which is located 240 kilometres east of the coast of Aberdeen in the UK sector of the North Sea. The contract is the largest ever for Semco Maritime’s Aberdeen office. Semco Maritime will be responsible for carrying out the electrical work, while the piping and painting work will be carried out by two other companies.

6Semco FSO platform2Preparation in Singapore

The Culzean complex consists of a central processing platform, a wellhead platform, a living quarter platform, which are currently under construction at the Sembcorp Marine yard in Singapore. Production from the natural gas field is expected to commence in 2019. In Singapore Semco Maritime will even now set up a team of hook up specialists to prepare the installation work in order to have everything planned when the platforms arrive in the North Sea next summer, says Vice President Carsten Nielsen, Semco Maritime Ltd. “We are very pleased that Maersk Oil UK has chosen us for this project, which marks a breakthrough for us in the UK. The order also confirms Semco Maritime’s strategy of including our competences and offshore experience in a close cooperation with customers in the North Sea, who seek highly specialized assistance within maintenance projects or hook up of new installations”, says Carsten Nielsen. The Culzean order is a very interesting and challenging project that sets the highest expectations and demands for safety and quality on time, and we will do everything we can to live up to this”.

75-150 jobs in Aberdeen

The offshore work will be carried out from the base in Aberdeen, where Semco Maritime expects to employ 75-150 people for the approx. 8-9 months it will take to prepare Culzean.

The order is a continuation of the positive development in the activities, which Semco Maritime has experienced in the UK during the past six months, says Director James Cooper, Semco Maritime Ltd., Aberdeen, who is looking forward to a good and even closer co-operation with Maersk Oil and the others involved. “The order shows the advantages of being represented with locations and experts in the same geographic areas as our customers. From our Singapore office, we can plan the work optimally, and thereby increase efficiency and minimize costs, when work is to be completed in the North Sea”. During the period the order will create jobs for approx. 20 people in Esbjerg, both internally in Semco Maritime and at Fanø Fran Service and Ocean Team Scandinavia, who have been selected as sub-suppliers for parts of the work.

Semco Maritime’s total contract is expected to exceed 100,000 working hours offshore. The Culzean field will cover 5 per cent of the gas demand in the UK in 2020/21.

Proserv Norway Secures Significant Decommissioning Project Awards

Energy services company Proserv has recently been awarded three contracts worth a combined value of more than $2.5million (approx. 21.5m Norwegian Krone) for decommissioning work in the Norwegian North Sea.

The firm’s Stavanger facility will provide cutting services as part of a full severance package covering subsea and topside work. Compared to more traditional approaches, the cutting technology solutions deployed by Proserv can save hours in well severance and plugging, which can lead to significant savings in day rates over a campaign.

7Proserv Decom ServicesA Proserv technician working on the firm’s suite of decommissioning tooling.

These awards build upon decommissioning successes for the company globally in recent months with around $8million worth of work secured in Asia Pacific, the UK and Gulf of Mexico.

As part of the decommissioning workscopes, Proserv will provide abrasive cutting, diamond wire cutting, grout removal and dredging services.

Henrik Johnson, region president for Norway, said: “To date, we have cut over 300 wells globally in a variety of challenging conditions and environments, so our track record and the reliability of our equipment was a key factor in securing these awards. Another major attraction is the fact we can offer a wide range of integrated services all under one roof helping to cut costs, reduce complex supply chains and better manage risk through using a single source provider.

“One of the contracts requires specialist engineered solutions to deal with non-standard sizes used in the structure. The complex installation requires a custom technology solution rather than an ‘off-the-shelf’ package and this is at the core of Proserv’s expertise.”

The contracts come at a time of strong investment and development with the company currently investing more than $2million to develop two new Multi String Cutting (MSC) systems for well severance campaigns, to meet market demand.

STATS Group Weighs In on Second Anchor Damaged Pipeline Repair Complex Gulf of Thailand Project on 8” Gas Export Line

STATS Group has completed its second subsea pipeline repair and isolation project which was the result of vessel anchor damage.

The pipeline technology specialist was commissioned by CUEL Ltd to repair an 8” gas condensate export pipeline in the Gulf of Thailand which had been dragged eight meters out of position by a vessel anchor and required a permanent repair.

8 1STATS GROUP HTM Hot Tapping Machine and Clamp Deployment OverboardSTATS GROUP HTM (Hot Tapping Machine) and Clamp Deployment Overboard

STATS utilized its range of subsea products to facilitate the repair, which included BISEP’s, slab valves, hot tap fittings, completion plugs, end connectors and abandonment plugs – all engineered, manufactured, tested and deployed in-field - allowing a pipeline repair with no impact to production, the environment or risk to diver safety.

Working with CUEL and the pipeline owner, a repair methodology and solution was developed, whereby an 8” bypass was installed on the seabed as a permanent repair to re-route the pipeline medium away from the damaged pipeline section, which was situated at a water depth of approximately 60 meters and had an operating pressure ranging from between 7 and 21 bar.

8 2STATS Group 8in Hot Tap Fitting and Slab ValveSTATS Group 8in Hot Tap Fitting and Slab Valve

Mark Gault, Subsea and EPRS Product Line Manager for STATS Group, said: “This subsea pipeline repair project presented many operational and technical challenges. The successful completion demonstrates STATS ability to accommodate complex operations while maintaining high levels of safety at all times.

“STATS range of subsea isolation and intervention equipment provides operators a turnkey service for pipeline repair scenarios and establishes STATS’ capabilities within the subsea market. We will use the experience and our proven track record of first class delivery of these major projects to seek out other global opportunities for similar subsea contracts.”

STATS’ patented BISEP was selected to provide leak-tight isolation of the pressurized pipeline and was deployed through a full bore hot tap penetration at the isolation location through a mechanical hot tap fitting.

Mr. Gault added: “The DNV GL type approved BISEP provides a fully proved, fail-safe, double block and bleed (DBB) isolation barrier from the pressurized pipeline. This level of isolation complies with industry guidance on isolation and intervention for diver access to subsea systems, ensuring diver and worksite safety.

“The pipeline repair solution incorporated installing a permanent bypass pipeline, which allowed the operations to be completed without the need for shutting-in pipeline production or depressurizing, thus, ensuring production was maintained uninterrupted.”

STATS have previously completed a subsea isolation on behalf of COOEC Subsea Technology when the Yacheng pipeline in the South China Sea – an important asset for suppling gas to Hong Kong – was severely damaged by a ship’s anchor. The pipeline was repaired at an unpiggable location 280 km from shore and in water depths of 60 meters without depressurizing and flooding the entire pipeline.

UK-headquartered STATS Group is supported on Asian projects from its base in Kuala Lumpur and has engineering, design and storage facilities in Abu Dhabi and Qatar.

Delmar Unveils the new RAR Plus™ and the MOOR‐Max™ Releasable Mooring System

Continuing with its strong tradition of developing innovative mooring solutions, Delmar Systems unveiled the new RAR Plus™ and the MOOR‐Max™ Releasable Mooring System at the 2017 Offshore Technology Conference.

The RAR Plus is the next generation of Rig Anchor Release (RAR), building on a 35‐year history of proven acoustic release technology by adding key features such as a manual backup release method and increasing the ultimate and release load ratings. In addition, the RAR Plus transmits both direct and indirect line tension measurements from internal sensors for real‐time display onboard the rig in a user‐friendly graphical user interface.

9Delmar RAR PlusThe RAR Plus is a key component in the new Delmar MOOR‐Max Releasable Mooring System. The MOOR‐Max system provides a revolutionary mooring system for MODUs to avoid storms or improve rig move efficiency. It is the only mooring system that combines proven acoustic mooring release technology with efficient proprietary methods that come from over 40 years of rig move experience.

“The MOOR‐Max Releasable Mooring System and RAR Plus expand the capability of moored and DP/moored rigs to operate in mixed shallow and deepwater programs in areas with extreme environmental considerations,” explained Delmar Systems Vice President of Engineering, John Shelton. “Not only does the MOOR‐Max system allow rigs to significantly mitigate risk by evading cyclonic storms or ice floes, it also reduces critical path time when disconnecting rigs for transit to the next location.”

For more information please watch the video

Vestdavit PAP-16000 Brings New Davit Lifting Force to Market

Vestdavit has completed its largest ever single-point A-frame davit for over the side boat handling, rising to the continuing challenge set by customers to be able to launch and retrieve ever larger workboats from their ships.

The first PAP-16000 davit, which features a safe working load of 16t, will be installed on board a service operation vessel destined for a specialized segment in the offshore industry for an unspecified owner. The 58.5 m length vessel, due delivery by the end of 2017, will operate off north continental Europe.

10VestdavitThe new PAP-16000 single point davit from Vestdavit

The Norwegian boat-handling specialist said it had received approval from DNV-GL for the new PAP-16000, which can handle workboats in conditions of up to sea state 5. It features an anti-pendulation docking head and guiding arms to limit load sway in adverse weather.

“Vestdavit has supplied bigger davits, but the PAP-16000 is our largest single point davit with docking system for lifting over the side of a ship to date,” said Atle Kalve, Vestdavit Development Director. “We have delivered dual-point/winch davits of up to 36t SWL and a 30t single point davit for stern operations, making us the market leader in handling very large workboats. However, single point handling of larger and larger workboats over the side without compromising stability presents particular challenges.”

The first installation will be onboard a vessel designed for flexibility, needing to lift one crew boat able to carry up to five personnel, but another able to carry a complement of up to 10 persons plus one ton of cargo, Mr. Kalve added.

In its first delivery, the new davit will also be distinguished by its high operating speeds, with the customer requesting lifting speeds of 45 m/min, which Mr. Kalve said demanded a comparatively high oil flow to achieve max hoisting speed at SWL.

In addition to service operation vessels, the PAP-16000 offers a new and innovative option for owners of emergency response and rescue vessels, pilot ships, standby vessels, multi-purpose offshore vessels and other types of construction vessel.

ELA Container Offshore GmbH delivers Control Room for Thialf

ELA Container Offshore GmbH delivered an Offshore Office Container to Heerema Marine Contractors. The container was placed on board their Semi-Submersible Crane Vessel (SSCV) Thialf and was used as a control room to operate their anchor winches.

Heerema Marine Contractors (HMC) is a world leading marine contractor in the international offshore oil and gas industry and excels at transporting, installing and removing offshore facilities. These include fixed and floating structures, subsea pipelines and infrastructures in shallow waters, deep and ultra-deep waters.

11ELA Offshore OfficeOnThialf webThe Thialf is their largest SSCV and capable of a tandem lift of 14,200 t (15,600 short tons). Its two cranes provide for a depth reach lowering capability as well as a heavy lift capacity to install topsides. This multi-functional dynamic positioned SSCV is customized for the installation of foundations, moorings, SPARs, TLPs, and integrated topsides, as well as pipelines and flowlines.

"Originally HMC was looking for a 10ft office container to monitor the work. However, we managed to convince them in using our standard 20ft offshore office container to serve as a control room. The container was needed on short notice and we managed to adjust the interior for installing their monitors and further inventory", explains Frank ter Haak, Business Development Manager Netherlands at ELA Container Offshore GmbH. “The container was placed on top of our winch container and a stairway and platform was built from scaffolding, providing us a perfect view on the hoses over the stern of the Thialf. We were very pleased with the way things were handled by ELA Container Offshore”, says Water de Winter, Equipment Management NFE at HMC.

“During past offshore projects, we recognized the need to deliver containers immediately or just within a few days. To be able to promise and realize an on-time delivery to our clients, we start producing new containers for our fleet as soon as stock is low. Again, this was a perfect example of how quick we can provide a solution to our clients. We are of course delighted and proud to have served Heerema Marine Contractors this way and we hope to have demonstrated our quality product and excellent service”, says Managing Director of ELA Container Offshore GmbH, Hans Gatzemeier.

ELA Container 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 Cargo 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 high quality Containers are “Made in Germany” according to German quality standards and possess all necessary certifications such as DNV 2.7-1 / EN 12079-1, DNV 2.7-2, based on SOLAS, IMO FSS Code and MLC as well as CSC and are approved from several IACS-companies. In terms of fire resistance, an A60 insulation provides high safety standards. Every container will be checked before delivery. Depending on customer requirements, ELA Offshore Containers are individually customized, immediately operational and are available at short notice.

The main features of ELA offshore accommodations include:

  • Flexibility on demand
  • One base type with various accommodation solutions
  • Easy handling thanks to standard 20 ft High-Cube ISO standard dimensions
  • Highest quality standards

ACE Winches Provides Mooring System on the Iron Lady Barge

12AcewinchesLeading global deck machinery specialist, ACE Winches has successfully mobilized a 6 point mooring system to anchor the Iron Lady Barge being used on the Brent decommissioning project. The equipment, designed and manufactured by ACE Winches at their global headquarters, Turriff, Aberdeenshire is now in situ and being supported by a team of ACE Winches offshore personnel.

ACE Winches manufacture a range of standard and bespoke drum winches, available in single or double drum configurations. Drum winches are designed to be utilized for hoisting, deployment, mooring and general pulling applications and, depending on the size and power requirement, can be hydraulically, electrically or pneumatically driven.

As part of the Brent Delta decommissioning project the 24,000te platform topside is to be transferred to a 200-metre long barge, the Iron Lady, being moored at the client’s specialist facilities in the North East of England. An ACE 6-Point Mooring system is in place to assist and maintain the positioning of the barge during operations to transfer the platform to the shore side.

The ACE 6 point mooring system incorporates ACE hydraulic drum winches ranging from 75te WLL to 25te WLL, powered by 6 closed loop diesel hydraulic power units.

The Shell-operated Brent field, located 115 miles north-east of the Shetland Islands, has produced around three billion barrels of oil equivalent since production started in 1976, which is almost 10% of UK production. The Brent Delta topsides, located some 186 km off the north-east coast of Shetland, sat on a three-legged gravity-based structure which stands in 140 m of water.

Richard Wilson, Chief Operational Officer at ACE Winches said: “ACE Winches has proven experience along with a wealth of knowledge and engineering expertise in designing and supplying complex mooring systems that can be used to support heavy lift operations such as this one. During the past 6 months the team at our global headquarters has been working in close partnership with our client to ensure that the mooring solution met their precise specifications.”

Bibby Offshore Strengthens Renewables Division with Key Appointment

Bibby Offshore, a leading subsea services provider to the oil and gas industry, has appointed Dorothy Shepherd as general manager, renewables.

Mrs. Shepherd joins Bibby Offshore with more than 15 years’ experience in the energy industry. Having spent a significant time at The Crown Estate - a key player in supporting the delivery of energy supply for the UK – Mrs. Shepherd brings with her a wealth of offshore renewables knowledge, including the delivery of new developments and supporting infrastructure.

13Bibby DSC 0516Dorothy Shepherd, General Manager, Renewables

In her new role, Mrs. Shepherd will be instrumental in the delivery of new business in the renewables sector. The position includes supporting existing business development and tendering efforts, while collaborating with Bibby Offshore’s sister companies Bibby Marine Services, which offer SOV and Walk to Work vessels and Bibby HydroMap, which offer a range of seabed survey services.

This appointment follows the formation of Bibby Offshore’s new business optimization team, led by Graeme Wood, as part of the company’s strategic growth strategy. The primary purpose of the team is to facilitate a number of key business initiatives, accelerating the business through the next level of growth.

Commenting on her new role, Mrs. Shepherd said: “I am thrilled to be joining Bibby Offshore and to be working with a company which has such a strong track record. I am confident my knowledge will help to identify new opportunities in the renewables market and deliver the strategic results required for long-term success.”

Graeme Wood, business optimization director at Bibby Offshore, said: “Renewables has been a key element of Bibby Offshore’s strategic growth plan for a number of years, and Mrs. Shepherd’s appointment demonstrates the importance that we attribute to this market as a potential source of revenue in the future.

“While this market has a longer tendering cycle than seen in the oil and gas sector, Dorothy’s knowledge and experience will help to ensure we continue to establish the most effective market opportunities and remain resilient in a competitive marketplace.”

PIRA Energy Market Recap for the Week Ending May 15, 2017

14PIRALogoU.S. Inventory Deficits to Last Year Likely to Widen

U.S. product demand was very strong this past week, pulling up the four week average adjusted demand growth to 4.1%, or almost 800 MB/D over last year. Total commercial stocks drew 3.6 million barrels this past week led by a 5.2 million barrel crude stock draw, the largest weekly decline this year. Cushing crude stocks surprisingly drew 0.4 million barrels last week and another stock decline of 0.3 million barrels is forecast for this week’s data. Inventories of the two major light products are forecast to decline next week, along with another significant crude inventory decline.

Peak Restocking Month Set to Disappoint

After faltering early in the week, NYMEX futures quickly regained lost ground and have now tested the calendar highs set back in early April. Helping to feed the bulls was yesterday’s EIA weekly storage report showing an unexpectedly low build that took the market by surprise — widening the year-over-year storage deficit to 372 BCF. Indeed, it appears that the aggregate storage refill will fall 100 BCF short of the 5-year average — roughly in line with last year’s anemic levels. Yet, while the net monthly build will likely be similar to last May, such a comparison belies the notably different year-over-year trends at work — particularly on the demand side of the U.S. balances, but also in the case of supply given signs a turnaround is finally unfolding.

NBP is Pricing Out U.S. LNG – Should Henry Hub be Concerned?

Current deliveries to N.W. Europe vs. the balance of the Continent highlights a vulnerability to LNG producers and a challenge to marketers, in particular American ones (given the proximity) during shoulder months. In the previous weeks, we highlighted this issue for global LNG markets, but it also is true for Europe on its own. Pipeline producers will try to lock in utilities into high minimum takes to block LNG deliveries in these shoulder months, but there will be an increasing desire for companies to gain ever more flexibility in order to take advantage of LNG length in these vulnerable periods. This pattern has certainly been evident in portions of Southern and Eastern Europe, where the legacy of oil indexation in gas pricing has made it relatively vulnerable to immediate competition from attractively priced spot LNG.

Japan Power Generation Growth Surge Still Threatened by Nuclear Capacity Increases

Japan did an impressive job by stepping up to keep its new LNG contract commitments early this year. But the increased imports may have been temporary – caused by lower LNG prices, colder weather patterns, higher oil prices and in the future, the lingering issue of nuclear restarts could further threaten LNG consumption. The restart of the two Takahama nuclear reactors in Fukui Prefecture (total of 1.7 GW) appears imminent, with Kansai planning to restart unit 4 on May 19. This will have a potentially large downside impact on LNG consumption as opposed to oil going forward.

Back to a Weather Watch

With the May WASDE behind us, the markets will focus on weather and planting progress for the next 6-7 weeks until the end of June and the Acreage report. However, planting progress numbers can be a bit misleading moving forward as they do not take into consideration the number of acres that will need to be replanted.

Malaysia Approves New Ammonia Plant

Malaysia’s Union Cabinet has approved the signing of a Memorandum of Understanding (MoU) for the development of a US$2.1 billion ammonia and urea manufacturing plant in Malaysia. The plant’s capacity is expected to total 1.35 million tpy of ammonia and 2.4 million tpy of urea. Supply will be focused on the Indian market. "The Union Cabinet today gave its ex-post-facto approval to the signing of MoU with Malaysia on the development of a urea and ammonia manufacturing plant in Malaysia," an official release said.

Ethanol Stocks Slightly Lower

U.S. ethanol production rose 20 MB/D last week to 1,006 MB/D. East Coast stocks jumped to a five-year high 8.6 million barrels, though total inventories fell a relatively small 158 thousand barrels to 23.1 million barrels. For the first time in nine months, imports were reported, all of which were received in PADD V. Ethanol-blended gasoline manufacture dipped to 9,161 MB/D from 9,203 MB/D in the preceding week. June ethanol futures were up 0.1¢ to $1.45 per gallon today as of 11:55 A.M. CT.

Propane Inventories Begin to Build

Propane stocks registered a 2 million barrel build, which is the first significant build of the injection season. Total inventories rose to 41.6 MMB, which is 31.5 MMB below last year’s levels. Propane inventories increased in all PADDs. Exports will curb within the upcoming month based on reported cancellations and will most likely remain relatively low through the summer. Declines in exports may not be noticeable in the next several weeks, although should begin by mid-May.

Slower Debt Growth in China Not Yet Hitting Economic Activity

In April, the amount of credit in the Chinese economy continued to increase, but at a slower pace compared to earlier. The Chinese government is likely to maintain its restrictive stance on credit creation, as worries about the debt-to-GDP ratio continue to loom. While credit growth has been a leading indicator of economic activity in China, a slowing in the economy’s momentum has not yet materialized. In the U.S., retail sales for April pointed to a rebound in consumer spending. A reading on core inflation stayed soft, but this is not expected to influence the Fed’s deliberations on policy.

Lower Renewables Firm German Prices. Signs of Flexibility of Wind to Negative Prices Emerge

German day ahead prices have been quite firm so far in May, with reported solar output down by over 2.7 GW year-over-year and wind 0.3 GW year-over-year. However, the German power system has actually seen another period of negative prices, between April 30 and May 1. Coal, lignite, gas, and even nuclear plants have ramped down during the period of negative prices, while German exports have reached a peak for the year at 12.2 GW on April 30. Unlike thermal plants, renewable plants have been typically sheltered by their remuneration structure, but large negative prices are also unveiling some degree of flexibility.

Shoulder Season Slumber; Focus on Capacity Markets

Spot power prices increased year-over-year in April in most Eastern markets driven by rising gas prices, higher cooling loads across the South, and nuclear outages. Henry Hub spot prices continued to hover around the $3 mark in April reflecting a 60% year-over-year increase. PIRA is neutral to near term gas market forwards but remains bullish during heating season 2017-18. Year-over-year power price increases continue through the forecast period but generally fail to keep pace with gas prices as the call on gas-fired generation continues to weaken while efficient CCGT capacity grows. Implied heat rates fell in nearly every market, led by a 36% average drop at PJM-W which is fast becoming the poster child for the dangers of overbuilding.

Japan Holiday Impacts, Pluses and Minuses

Two weeks of data were reported due to the Golden Week holidays. Runs declined, on balance, as further maintenance kicked in. Crude imports ran particularly high and then plunged, which ballooned crude stocks at month-end April, but then corrected lower as we entered May. Finished product stocks fell in the latest week but generally continue their seasonal rise. Demand trends remain largely seasonal and have held up well. Gasoline demand was hyped by the holidays in the latest week with demand besting 1 MMB/D. Gasoil demand fell both weeks as the holiday reduced industrial and commercial activity. Stocks built both weeks by an almost cumulative 1 MMBbls, and 2.28 MMBbls over the last five consecutive weeks. Refining margins have looked increasingly sloppy. The implied marketing margin has improved the past three weeks, which has helped to partially offset the developing weakness in refining.

Coal Prices Continue to Shift Lower, Chinese Demand Fundamentals Strong... For Now

Coal prices continued to shift lower last week despite a notable rebound in the oil market. FOB Newcastle prices declined by the greatest extent, with the entire curve losing more than $2.50/mt compared to the end of last week. The coal market in general continues to search for a new short-term equilibrium following pricing surges both last year and last month. Clear signals out of the Chinese market remain elusive, as imports have remained strong, although domestic production continues to rebound.

European Carbon Prices Stay Low, Trialogue Talks Coming Up

Breaking the trend from prior years, European carbon (EUA) prices failed to rise during the April compliance period, suggesting existing market positions were adequate for compliance. Prices have moved lower in May, with a price rise not expected until August (when auction volumes are lower). “Trialogue” talks on post-2020 market reforms remain the major market wildcard, with EUA price swings possible both ahead of and following the upcoming May 30th meeting. At the same time, the widening EUA delivery spread for 2019 suggests that EUA prices increasingly reflect an ambitious reform package – as well as continuing poor fundamentals in the balance of 2017 and 2018.

Credit Conditions Remain Positive With Low Stress

Financial stresses remain extremely low. The S&P 500 is still trying climb over and hold the 2,400 level. There still remains noted divergence between bank equity performance (higher) and a flatter yield curve. This is still occurring in the major regions (U.S., Europe, and Japan). Commodities remain soft, but energy perked up this week, and we had noted that cash energy had been acting weaker than energy credit would have suggested. Price trends in non-energy-high yield debt still look positive.

U.S. Ethanol Prices Mostly Lower

U.S. ethanol prices declined most of the week ending May 5, but there was some rebound Friday. Manufacturing margins tumbled. 2017-D6 RINS decreased to 41.0 cents. Brazil returned to an export position in April. The vote on imposing a tariff on U.S. ethanol imports was postponed until June. European ethanol values increased to a six-week high.

Long Term Models Remain Wet

The recently concluded California drought began on December 27, 2011 but it wasn't until August 13, 2013 when the category "extreme drought" made its debut in the southwestern part of the state. In 2014, 2015, and 2016, major portions of the so-called Golden State were covered by both extreme and exceptional drought. With this past winter's heavy rains, just over 5 years of drought ended with an official gubernatorial declaration on April 4, 2017. Unless you're a vegetable/fruit producer or consumer, that stretch of intense drought probably didn't mean much. However, given the predominant west to east pattern flow, we started to wonder aloud a few months ago what the impact of a non-drought stricken California would have on Midwest weather this summer.

Tighter Seasonal NOx Limits Begin in the East as Other Rules are Targeted

A number of rules finalized under the Obama EPA are being targeted under the Trump administration. The tighter CSAPR Update rule NOx limits associated with 2008 Ozone NAAQS attainment have managed to survive and are in effect as of May 1st for units across much of the Eastern half of the country. Seasonal NOx allowance prices have risen in response. With court challenges outstanding, questions remain over whether EPA will defend the CSAPR Update rule. EPA has delayed litigation on the stricter 2015 Ozone NAAQS. Pressure to reduce cross-state emissions continues to come from petitions under the “good neighbor” provisions of the Clean Air Act.

B.C. Voters Decide - Almost

Last week, British Columbia voters went to the polls but the outcome remains uncertain. Prior to the inclusion of absentee ballots and the likely call for a recount in some tight ridings, the Liberals have captured 43 seats, the NDP 41 and the Greens, holding the balance of power, with 3 seats. Several ridings had very slim margins of victory and still await absentee ballots and possible calls for recounts leaving the final outcome in doubt between a slight Liberal majority or a minority government decided by Green Party support. The closest vote was in the riding of Courtenay-Comox where the NDP hold a nine-vote lead in a riding with a large military base that should have many absentee ballots from soldiers stationed out of the province. The Liberal candidate in the riding is the former base commander which suggests this riding could swing to the Liberals and produce a Liberal majority.

Global Equities Remain at or Near Record Highs

The broad U.S. market flirted at or set new record highs but was lower week-on-week. Technology and energy were the best performing sectors, while retailing was the weakest. Internationally, many of the emerging market sectors posted strong gains. World equity capitalization moved to a new record high this past week, something that had eluded it since the mid-July 2015 peak.

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.

Westwood Insight: Exploration Turns the Corner in 2017

15 1WestwoodGlobalenergylogoIf the industry is out of the emergency room in 2017, it is not yet out of hospital. Even if oil prices recover further, explorers will need to focus on finding low cost oil and gas profitable to develop at $40 per barrel or less. Low cost oil will always find a market, never mind the current stranded assets mantra. Finding costs need to be kept below $1–2/bbl, or perhaps a bit higher for near field discoveries where development costs are lower. Being the average explorer of the past few years will not be good enough – companies will need to believe they have the acreage portfolio, technology, people and processes to create value. This means an efficient exploration process with larger prospect portfolios and fewer, better wells targeting bigger prospects at higher commercial success rates.

It also means making discoveries that will not be stranded commercially or politically. In mature areas like the North Sea, it means exploring efficiently for oil and gas near late life fields to delay abandonment.

15 2Westwood Insight 15 05 17 Exploration Turns the Corner in 2017

Left: REP40 benchmark companies gross wells drilled and success rates for the period 2012-2016 showing a drop in number of well penetrations, but an increase in success rates for 2016, implying greater pre-drill screening and selection of prospects. Right:, REP40 companies gross volume discovered for oil and gas with finding costs for oil only and overall hydrocarbons. Source: WILDCAT Database.

The industry is emerging leaner and fitter from this latest down-cycle, but it must be able to remain disciplined during the bull oil market to come (whenever that might be). Decreased competition means lower access costs for exploration acreage and more opportunity to create value from exploration for the accomplished explorer. 

The eighth edition of the State of Exploration Report1 provides a detailed analysis of the exploration sector and the challenges it faces in 2017.

Westwood Global Energy Group (WGEG) has produced its eighth annual State of Exploration Report1, the definitive global benchmark for conventional oil & gas exploration, which covers 991 completed conventional wildcat wells at a total drilling cost of $43.5bn. The most detailed report of its kind, it spans five years of global high impact exploration and also benchmarks the performance of 40 international E&P companies.

  • Westwood Global Energy Group (WGEG)’s annual State of Exploration report analyses the last five years of conventional oil & gas exploration and forecasts exploration drilling plans for 2017.
  • The analysis confirms that 2016 saw a nine-year low in oil & gas exploration in both wells drilled and discoveries made.
  • But it expects a brighter outlook with exploration efficiencies starting to deliver results.
  • Conventional exploration can compete with North American unconventional oil and gas in full cycle breakeven costs.
  • Decreased competition means lower access costs and greater opportunity for accomplished explorers, tempered somewhat by the lack of new oil plays to explore.

To arrange a demonstration of the latest WILDCAT data or to purchase the report, please visit Westwood Global Energy Group.

DEEPFRAC™ Deepwater Multistage Fracturing Service from Baker Hughes

Baker Hughes Incorporated (NYSE:BHI) announces the introduction of its DEEPFRAC™ deepwater multistage fracturing service, which can save operators hundreds of millions of dollars in offshore developments through unprecedented efficiency gains across the completion phase. Using multiposition sleeves and patented flowback control technology, the service accelerates or eliminates certain steps of conventional multizone completion operations and enables rapid stimulation of 20+ stages. This translates into significantly greater reservoir contact, with an average OPEX savings of USD 30 to 40 million per well.

Proprietary flowback control media is incorporated directly into the multiposition sleeve's production ports to enable long-term, sand-free production without the need for conventional sand screens. (Photo: Business Wire)

“Historically, operators who needed to stimulate their offshore wells were faced with complex completion operations that could take longer than a month and with costs approaching a hundred million dollars,” said Jim Sessions, Vice President, Completions at Baker Hughes. “By adapting some of the technologies and techniques that delivered game-changing efficiencies in unconventional land to an offshore service, we’ve enabled a new level of deepwater completion design flexibility and streamlined operations—all without compromising our commitment to safety and compliance.”

1DEEPFRAC 1Proprietary flowback control media is incorporated directly into the multiposition sleeve's production ports to enable long-term, sand-free production without the need for conventional sand screens. (Photo: Business Wire)

Typically, after a deepwater well has been drilled, the subsequent completion phase involves multiple, time-consuming steps. In contrast, the DEEPFRAC service eliminates casing and cementing operations and simplifies fluid logistics by using ball-activated, multiposition sleeves that can be installed in openhole wellbores containing drilling mud. And, unlike conventional offshore systems’ complicated tool running procedures and extensive mechanical manipulation requirements, no tool movement is needed during the DEEPFRAC service’s stimulation process. The sleeve’s ball activation enables continuous pumping from the first stage to the last, cutting the lower completion phase from weeks to days.

Conventional offshore stimulation systems are often limited to only five zones or ‘stages’ and these systems lack configuration flexibility that often results in uneven treatments and creates long sections of ‘dead space’ that cover up hundreds of feet of viable pay. The sleeves used in the DEEPFRAC service are modular and flexible, enabling placement of 20+ tightly-spaced stages across the pay zone to ensure more uniform treatments and to maximize reservoir contact.

After stimulation operations are complete, Baker Hughes IN-Tallic™ disintegrating frac balls allow production to flow without intervention. Patented Baker Hughes BeadScreen™ proppant flowback control technology built directly into the DEEPFRAC sleeve’s production ports provides increased reliability over conventional sand screens through higher burst/collapse ratings and improved erosion/plugging resistance, helping to ensure long-term, sand-free production.

On a recent job, the DEEPFRAC service saved an estimated 25 days rig time and USD 40 million on a first-ever 15-stage deepwater completion in the Gulf of Mexico’s Lower Tertiary.

The DEEPFRAC service is the latest example of Baker Hughes’ strategy to improve well efficiency, optimize production and increase ultimate recovery.

Enpro Supports Operator to Achieve Record Time for First Oil

2 1Enpro flow assurance chemical injection Flow Access Module installed onto existing flow loop manifoldProduction optimization specialist Enpro Subsea has revealed details of how its unique subsea architecture was used for the first time by an operator in the Gulf of Mexico and was a contributing factor to the organization achieving first oil production in under 12 months – a record time for the client.

Enpro showcased its Enhanced Subsea Sampling & Injection (ESSI) and Flow Access Module (FAM) systems during Monday’s Standardization technical session at OTC 2017 in Houston, discussing how their equipment was instrumental to the tieback project’s success and provided added flexibility to the asset’s life of field. The ESSI FAM system is designed to use standard subsea systems to deliver faster, more cost effective and more flexible subsea systems.

The challenge from the operator was to tie back a new production well via a single spur into an existing subsea flowloop in the Mississippi Canyon. Enpro Subsea was invited to assist in the design of a fast track solution making use of its existing deepwater infrastructures and surplus inventory of standardized subsea hardware. For the project to remain competitive, the operator gave a challenging 12-month deadline for the campaign, from concept to first oil.

The unique nature of the well spud location, existing infrastructure and established facility operating procedures, created various hurdles for Enpro to consider when designing its system. The production chemistry and uneven seabed topography required a flow assurance strategy to be considered which successfully managed and mitigated the potential for hydrate formation within the single spur flowline.

2 2Enpro Multiple FAM solutions and access at both ends of the single spur flowlineThe technical obstacles included the need to utilize existing components from different hardware manufacturers with differing hub connector designs. By enabling access to production processes at both ends of the 3.2km single line tieback, the operator was able to fit a range of enhanced recovery solutions at multiple locations, including, but not limited to:

  • flow assurance chemical injection
  • pressure balancing
  • multiphase metering
  • fluid intervention (scale squeeze)

Enpro Subsea business development manager for the Gulf of Mexico, Adam Hudson, said: “The ESSI and FAM systems allowed the operator to fast track the project using their existing stock hardware. With the addition of the patented FAM technology, Enpro provided the required subsea system functionality onto existing hardware, enabling the ‘life of field’ solutions to be installed directly onto existing hardware. Our solution enabled concurrent engineering, which in turn enabled first oil within 12 months”

“Looking beyond this campaign and to the future of the operator’s asset, another benefit is that our technology provides a retrievable platform which will allow a range of enhanced production solutions to be fitted at various locations throughout the life of field, including fluid intervention and sampling.

“We are extremely proud to have played an integral part in our client’s success and to have developed technologies that can be integrated into any vendor’s equipment making well intervention a safer and less expensive option throughout the life of field for new and mature assets.”

InterMoor UK Expands Their Decommissioning Services

3InterMoor Oak 20 wellhead 22InterMoor Ltd, a leading provider of mooring services, foundation solutions, and offshore installations in subsea services group Acteon, has added rigless well abandonment capabilities to its UK-based services.

Consolidating the capabilities of former sister company OIS Ltd, InterMoor UK can now help their clients to plan and execute turnkey suspended well decommissioning campaigns. This includes vessel charter and project management of all onshore and offshore operations from the initial review of well schematics to the production of end of well reports.

Mike Kearney, Decommissioning Lead, InterMoor Ltd, says, “In the current industry downturn, not owning a vessel is an advantage, as it means we can focus 100% of our efforts on the needs of the client rather than on our vessel utilization rate. Our team which has joined the existing InterMoor project team, is experienced in planning commercially efficient solutions with significant client benefits. The team has an unrivalled track record in the successful decommissioning of suspended wells and has completed 128 wells since 1996 in the North Sea. Merging these long-standing capabilities to the experience and support of the InterMoor marine staff will certainly add great value to our customers.”

As part of Acteon’s risers and moorings division, InterMoor designs, supplies and deploys technically advanced mooring systems and foundations worldwide.

Vessel Demonstrates Capability of U.S. Domestic Fleet to Perform Work Currently Being Done by Foreign Fleet

Harvey Gulf International Marine has announced the delivery of the first of two, large capacity Multi Purpose Support Vessels (MPSV) scheduled for 2017 deliveries, significantly enhancing the domestic Jones Act Fleet. This first vessel, the M/V HARVEY SUB-SEA, is a “best in class” Jones Act-qualified vessel that has the technical capabilities to efficiently, effectively and safely perform high quality field development activities that are currently being performed by a foreign fleet.


As U.S. Customs & Border Protection (CBP) finalizes a decision to revoke previous letter rulings inconsistent with the lawful enforcement of the Jones Act that permitted the use of foreign-flag vessels for subsea construction, inspection and maintenance activities, this delivery of the M/V HARVEY SUB-SEA clearly demonstrates the capacity and capability of Jones Act qualified vessels to immediately perform the necessary work. This delivery is part of an industry-wide $2 billion investment since 2009 to ensure the Jones Act fleet has capacity to meet the needs of the offshore industry.

“Today ends the debate as to whether the U.S. Jones Act fleet of MPSV’s is capable of doing work that foreign vessels have been doing illegally in the Gulf for many years. The Harvey Sub-Sea has the size, crane capacity, deck space, accommodation, equipment, and station keeping capability equivalent to, or better than, her foreign competitors,” said Mr. Shane Guidry, Chairman and CEO of Harvey Gulf. “The Harvey Sub-Sea can perform a broad spectrum of subsea installations and removals, inspection, repair and floatel services. It can be equipped to lay umbilicals and cables and perform well-intervention and hydrate remediation operations. If there is a MPSV job needed in the Gulf, she can do it.”

4 2Harvey Sub Sea and sister ship Harvey Blue SeaHarvey Sub-Sea and sister ship, Harvey Blue-Sea, expected delivery July 2017

The M/V HARVEY SUB-SEA is a Jones Act compliant 327’ x 73’ x 29’ MPSV, equipped with a 250-ton knuckle boom, heave compensated crane with 4000’ of wire. The crane’s winch is below deck, expanding her lifting capacity and enabling loads of 107 metric tons to be delivered to water depths of 12,000 ft. The Sub-Sea has 150 berths, all in 1 or 2 person rooms, 13,000 sq. ft. of deck space and a 24’ x 24’moon pool. It has a S61 (Heavy) Helideck and meets ABS DP2, SPS Code and MLC 2006 certification requirements, among many others.

M² Subsea and Frontera Offshore Join Forces in Gulf of Mexico

M² Subsea has joined forces with Frontera Offshore to deliver remedial pipeline work for Permaducto, a subsidiary of Grupo Protexa, in the Ku-Maloob-Zaap (KMZ) oilfield in the Bay of Campeche, 65 miles north east of Cuidad del Carmen, Mexico. This contract also marks the first award for M² Subsea in the Gulf of Mexico region.

5M2Subsea The MPSV TehuanaThe project will see personnel from M² Subsea’s Houston base on-board Frontera Offshore’s chartered multi-purpose support vessel (MPSV) Tehuana, to facilitate pre and post lay surveys for Frontera Offshore. The survey work will be carried out along a 7.5km section of the KMZ-94 pipeline to be stabilised for the Mexican pipeline contractor, Permaducto.

Frontera Offshore loading M2 Subsea’s ROVs onto the MPSV Tehuana

Two Triton work class ROVs will be deployed from the MPSV Tehuana to deliver the survey services, with 277 mattresses being installed at a depth of approximately 250ft.

With over 100 years’ global subsea experience between the executive team at M² Subsea and strong financial backing, chief executive officer Mike Arnold said the company is well on track to meeting its business objectives.

He said: “Our reputation as a global ROV services company is steadily growing. We are fully focused on developing and demonstrating this further through safe, well executed, value adding project delivery throughout our client base. This, together with our flexible, low cost model, augments our overall goal to become one of the world’s leading independent ROV project management and execution companies.”

“The Frontera Offshore contract demonstrates our willingness and desire to collaborate with other like-minded companies in order to provide strong, knowledgeable partnerships so clients feel comfortable working within region.”

Brad McNeill, CEO of Frontera Offshore said: “Frontera is pleased to have been awarded this project, and especially to be collaborating with M2 Subsea for a successful campaign. This is a big step toward our goal of becoming a leading subsea contractor in the sector.”

Expro Showcases a Range of New Technology Solutions at OTC

6EXPRO Subsea landing stringExpro has demonstrated its continued commitment to innovation, as it showcased a range of new capabilities and technology at OTC Houston 2017.

With Brent oil prices forecast to average $55/bbl in 2017, according to the EIA, operators remain focused on optimizing production from existing assets.

In the last year since launching four new areas of capability, including production optimisation and pre-well abandonment services, the company has seen a 15% increase in opportunities. This response and approach to the low oil price has reflected a change in focus areas for mature, higher cost basins like the US Gulf of Mexico (GoM).

Commenting on this trend, Expro’s Technical Marketing Director, Nigel Webster, said:

“While we have seen a softening in demand for our exploration and appraisal related products and services, our intervention and production business remains robust. This includes a record order backlog for our well intervention business, which has seen demand increase across a range of mechanical, slickline and cased hole support services. Our production surveillance and multi-phase metering related business has also experienced an uptake in demand, reflecting the ongoing focus to maximise incremental reserves from existing assets.

“For companies prepared to invest time in understanding their market and customer needs, the business is there. We’ve proven this by maintaining a stable customer base throughout the downturn, leaving us ideally positioned for a return to increased activity in the coming year.”

The landscape is continuing to change. For the first time in two years, exploration and production spend is forecast to increase, with North America poised to grow by as much as 60%, according to Barclay’s 2017 Global E&P Spending Outlook report. Lower break even prices on deep water projects, combined with a 1.3 million bbl/day growth in global demand for energy, means that operators are reviewing key project sanctions this year.

In response to the market fundamentals rebalancing, Expro has invested for a return to increased activity and is showcasing a range of new technologies at OTC Houston. The most significant investment is Expro’s Next Generation Landing String (NGLS), which comprises a programme of work to deliver a complete landing string package in line with the industry’s latest API 17G standards.

This includes a range of new functionality across its 7 3/8 valves, including; high debris tolerant ball mechanism and hydraulic latch mechanism; dual seal protection to both environment and control systems, and; new retainer valve cut and seal technology. The system is validated through extensive connector testing and analysis, allowing the development of structural and fatigue capacities to meet the most rigorous industry standards. This is complemented by a comprehensive data and fatigue life cycle management system, with Expro’s landing string certified SIL 2 compliant.

Coli Mackenzie, Expro’s Vice President of Subsea, commented:

“Subsea test trees have become the established safety system for well commissioning and intervention, with new standards developed to ensure well integrity is maintained at all times. As market leaders in subsea completions, Expro is committed to maintaining our position at the forefront of landing string technology as we continue to deliver the safest and most cost effective solution for our customers.”

The company has also invested in a range of other key technology solutions, including a new electronic choke for managed pressure drilling, well control and other choke applications. It can be retrofitted on to existing chokes with no specialist tools, delivering a fast response choke speed of less than 10 seconds, compared to traditional hydraulic chokes.

Expro is also featuring its non-reactive samplers that, when used with its mercury speciation services, deliver absolute measurement on mercury independent of any contamination from the sample device or analysis techniques.

Damen InvaSave Port-Based Ballast Water Management System Has World Premiere

7InvaSave port based BWMS 1 low resOn April 25th Damen’s award-winning and IMO certified InvaSave ballast water management system (BWMS) received its world premiere in front of an invited audience courtesy of Groningen Seaports at the harbour of Delfzijl and Eemshaven, The Netherlands. This marks the culmination of a seven-year programme to develop an effective mobile BWMS for use in ports.

The premiere was a joint presentation between Damen Shipyards, the designated operator MariFlex and Groningen Shipyards, as well as Royal Wagenborg. This was the first time that the InvaSave has been used by a commercial operator. The newly launched MV Egbert Wagenborg was brought alongside a quay and the containerised InvaSave 300 mounted on a barge in front of the bow. Ship-to-ship operator MariFlex then quickly connected the vessel and InvaSave using a convenient standard hose connection. The ballast water was then pumped out of the ship and passed through the InvaSave for treatment before being released into the harbour.

The operation was witnessed by representatives from port operators and authorities, ship owners and other maritime organisations. Anneke Schäfer, Director of Nature and Environment Federation Groningen, gave a speech welcoming the arrival of this new technology before officially turning it on. While the treatment process was taking place, the guests were also entertained by a water jet flyboard performing acrobatics in the harbour.

Philip Rabe, responsible for InvaSave sales at Damen, commented: “We’re delighted that the Damen InvaSave is finally operational in a commercial environment. It is a unique product and, in many cases, it enables ports to offer vessel owners a viable and cost-effective alternative to retrofitting on-board systems. And, in the event of failure of an onboard system, ports can offer owners a means by which they can access ballast water treatment at short notice, ensuring minimal downtime.”

The IMO-approved Damen InvaSave is the world’s first external ballast water treatment unit designed primarily for use in ports. The system receives ballast water from inbound vessels and treats it to IMO D-2 standard to eliminate potentially invasive marine micro-organisms. It can also deliver water treated to the same standard to outbound vessels. Its mobile, containerised format means that it can be operated from the dockside or from onboard a vessel alongside.

The new unit is now ready for operations at the harbour of Delfzijl and Eemshaven for vessels either without, or with malfunctioning, onboard BWTS capability. MariFlex also plans to have a second operational in Rotterdam ahead of the September implementation of the IMO Ballast Water Management Convention.

Diamond Offshore Continues Relationship with Speedcast for Managed Remote Communications Services

8Speedcast DiamondSpeedcast International Limited (ASX: SDA), the world’s most trusted provider of highly reliable, fully managed, remote communication and IT solutions, had announced it has secured a long-term contract with Diamond Offshore. Diamond Offshore, a leader in offshore drilling, is leveraging Speedcast’s managed communications services across 10 rigs and one shore-based facility.

“Diamond Offshore continues to adapt to the competitive nature of the industry,” said Tim Osburn, CIO, Diamond Offshore. “Through this agreement with Speedcast, Diamond Offshore increases its operational agility, benefiting from Speedcast’s world-class global customer support network. Diamond Offshore is pleased to continue this long-standing relationship with Speedcast.”

Under the terms of the new agreement, Speedcast’s service model yields increased flexibility for Diamond Offshore to better allocate bandwidth as the rig’s communications requirements change and as Diamond Offshore’s operations move from one region of the world to the next. Diamond Offshore’s rigs – a combination of drillships and semisubmersibles – are currently located across the Gulf of Mexico, North Sea, Brazil and Asia Pacific.

Diamond Offshore’s onshore facility and offshore rigs that are included in the agreement will receive fully managed voice and data communications services backed by Speedcast’s proactive network monitoring and management.

“We have a long history of supporting Diamond Offshore with reliable communications and we couldn’t be more pleased about extending our relationship,” said Keith Johnson, SVP and general manager – Energy, Speedcast. “We worked very closely with Diamond Offshore’s team to make sure we designed the best solution to meet their current needs, while also positioning them to benefit from our continued innovation and product development to add further value in the future.”