TechnipFMC Awarded Major Contract for the Coral South FLNG Project Offshore Mozambique

3TechnipFMClogoTechnipFMC, together with JGC Corporation and Samsung Heavy Industries, all partners in the TJS Consortium where TechnipFMC is leader, has been awarded by CORAL FLNG SA* a major contract. It covers the Engineering, Procurement, Construction, Installation, Commissioning and Start-up (EPCIC) of the Coral South FLNG facility and its associated risers and subsea flowlines system, as well as the installation of the umbilicals and subsea equipment.

The floating liquefied natural gas (FLNG) facility will be designed to produce close to 3.4 Mtpa of liquefied natural gas and will be moored in 2,000 meters of water depth in the Area 4, offshore Mozambique.

Doug Pferdehirt, Chief Executive Officer of TechnipFMC’s stated: “We are honored to be the leader of the execution of this prestigious contract awarded by Eni and its partners to the TJS consortium. Combining TechnipFMC unique capabilities in both FLNG and Subsea, we have been able to propose to our client an optimum combination, demonstrating the strength of our integrated offerings.”

Nello Uccelletti, President of TechnipFMC’s Onshore/Offshore business, commented: “This FLNG award is a key milestone for TechnipFMC and confirms our pioneering and leading position on the floating LNG market.”

*CORAL FLNG SA is a special purpose entity incorporated in Mozambique, owner of the FLNG facility and jointly owned by ENI MOZAMBIQUE LNG HOLDING B.V., CNODC MOZAMBIQUE B.V., ENH FLNG UM, S.A, GALP ENERGIA ROVUMA B.V and KG MOZAMBIQUE LTD.

Fugro Venturer Begins Offshore Survey Campaign

With a maiden voyage that takes her to the deep waters of Ireland’s Atlantic margin and the far North of the Barents Sea, Fugro Venturer is the newest of Fugro’s successful purpose-designed, standardized survey vessels, originally formulated in 2013.

4FugroVenturerFugro Venturer

The 72-meter vessel is a platform for technological innovation, where Fugro’s trademark technologies such as OARS (centralized command centers with direct access to offshore survey projects), Back2Base (enabling large amounts of survey data to be sent from offshore vessels to onshore processing centers and clients) and ROAMES (a powerful asset management solution streamlining subsea operations) are radically changing information delivery.

Fugro has secured a significant confirmed work backlog so that a campaign of site and pipeline route surveys, for clients including Aker BP, following commissioning and survey trials. Fugro Venturer is contracted to conduct simultaneous analogue/digital surveys, 3D high resolution seismic and environmental sampling and shallow geotechnical operations. An increased level of weather tolerance will ensure a highly reliable operational program.

Specialized equipment enables sampling in water depths of up to 3,500 meters and a permanent AUV hangar houses a Kongsberg Hugin 1000 autonomous underwater vehicle. The vessel can host a multitude of ROV platforms and the specially designed hull form and propulsion systems ensure acoustically quiet and economical running at higher than standard survey speeds.

Phil Meaden, Regional Director Fugro Europe Marine, explains how the new multi-role vessel will support the company’s marine site characterization and asset integrity contracts: “The Fugro Venturer provides an exceptional range of survey solutions. She will be equally at home in the offshore wind farms of Europe, where Fugro is pioneering innovative UXO and UHR3D seismic surveys and in oilfield inspections, where our latest solutions include fast ROV and fully autonomous inspections.”

FutureWaves™, A Revolutionary Wave and Vessel Motion Forecasting Product

5FutureWaves Banner2At the Offshore Technology Conference in Houston Texas this year, one exhibitor stood out as evidenced by the “wave” of excitement surrounding the release of their new and innovative technology – FutureWaves™. Applied Physical Sciences Corp. (APS), a wholly owned subsidiary of the defense giant General Dynamics known for their advanced technological contributions to national security and worldwide commercial markets, released a revolutionary wave and vessel motion forecasting product that is sure to have a progressive impact on the offshore operations industry.

FutureWaves™, originally developed by APS under funding provided by the United States Navy’s Office of Naval Research, is a real-time shipborne system that uses a specialized X-band radar to measure and forecast ocean waves in the vicinity of the ship. It takes this information and determines the timing of waves and their impacts, which is then used to predict ship motions (such as heave, pitch, and roll) for minutes into the future. The system provides feedback for operational planning such as best course and speed for a particular operation, but also uniquely delivers critical timing information during ship and deck operations.

Though the FutureWaves™ development was initially focused on the U.S. Navy’s interest in loading and offloading of heavy equipment at sea (seabasing), the offshore operational applications are vast and varied. One current application of the product involves a world leading international offshore oil and gas industry marine contractor who is planning to install the product on their largest deepwater construction vehicle. APS is also in discussions for planned installations on cruise lines, transport vessels, sea-based helicopter landing platforms, oil drilling and production vessels and platforms, and other offshore construction vessels.

Forecasting waves is not a new idea, yet past attempts and previous methods have fallen short. While buoy methods are useful for measurement of wave conditions, they are logistically challenging and cannot provide wave timing information. Other radar methods have been limited to statistical products and not proven to provide the fidelity and high level of effectiveness required to support critical operations. FutureWaves™ provides detailed wave characterization that is far superior to any existing system and is the most advanced wave and vessel motion forecasting system of its kind available today. The U.S. Navy needed a real-time solution with actionable outputs, and so does the offshore operations industry.

“There are a number of patents and trade secrets that separate our product from the rest:” said John Kusters, former U.S. Navy Captain and current Program Manager for the FutureWaves™ product, “our hydrodynamic modeling that allows us to better forecast the impact of the ocean energy on the ship, our real-time updating of the orbital force of the ocean energy, and a few others that you’ll just have to see for yourself!”

Visit the APS site for additional information on this new technology.

Aquaterra Sea Swift Platform Installed and Operating in Egypt for PICO Petroleum Integrated Services

Aquaterra Energy, a leading global offshore engineering solutions provider, has designed, fabricated and installed a new Sea Swift platform for PICO Petroleum Integrated Services, the lead contractor for Amal Petroleum Company’s (AMAPETCO) Amal field in the Gulf of Suez, offshore Egypt. This will open new opportunities for future cooperation between the two entities in large projects both in Egypt and the Middle East.

6 1Aquaterra PICO image 1Sea Swift Platform

The Sea Swift is a Conductor Supported Platform (CSP) and is installed in 23 meters water depth. It included a 385 tonne topside featuring a helideck and emergency accommodation with provision for six wells. The new topsides facility for the Amal-C platform involved designing process, piping, electrical, instrumentation, control system and technical safety scopes of work, the project also included the design of the new subsea production pipelines to the Amal-A platform. The project, which took 18 months from design to installation, involved building a bridge link to the neighbouring Amal-B platform and reconfiguring the topside pipework to create a new and improved production profile.

6 2Aquaterra PICO image 3George Morrison, managing director of Aquaterra Energy.

George Morrison, managing director of Aquaterra Energy said: “The Sea Swift platform is an ideal solution for shallow water field developments as it can be delivered from concept to completion quickly. This project will bring AMAPETCO significant cost and efficiency savings. Aquaterra also designed the new subsea production pipelines to the Amal-A platform. We are extremely proud to be working closely with PICO Petroleum Integrated Services, the independent Egyptian integrated services provider, to deliver this flagship project from design to delivery.”

The Sea Swift platform is a modular system that unites the advantages of a platform with the rig-run benefits of a subsea development. Several Sea Swifts are currently in operation globally in shallow water locations in Asia Pacific and West Africa. The field proven technology helps customers achieve reduced platform costs, lower installation and intervention costs, and simplified project management. It can also rapidly increase production from platforms constrained by existing slots enabling wells to be drilled, completed with dry trees and installed before the arrival of the main processing platform.

“The deployment of CSPs is increasing due to growing demand for modularised wellhead platforms which can be built and installed in smaller, discreet packages across a number of fabrication yards,” added George Morrison. “The bespoke design also negates the need for diver or ROV involvement and any hot work which mitigates inherent risk and scheduling barriers, while cutting incremental costs. In addition, it can also potentially increase local content if this is an economic or political driver for the project.”

Shady Kabel, managing director of PICO Petroleum Integrated Services, added: “Aquaterra Energy has designed, fabricated and installed the Sea Swift platform in this shallow water field efficiently. The benefits of the CSP have contributed to invaluable project management expertise, which allows production from Amal-C to begin with confidence.”

Active for nearly 40 years in the Egyptian petroleum industry, PICO Petroleum Integrated Services (a member of the independent Egyptian PICO Energy Services Group) is a leading Integrated Services provider in Egypt, North America and Mexico. The PICO Energy Services Group delivers integrated technical solutions across the offshore and onshore oil and gas supply chain.

The Amal field is operated by AMAPETCO for its shareholders The Egyptian General Petroleum Company and Cheiron Amal Petroleum Corporation in Egypt's Gulf of Suez.

McDermott Awarded Angelin EPCIC Contract from BP Trinidad & Tobago

7McDermott Angelin TopsidesMcDermott International, Inc. (NYSE:MDR) announces it has been awarded an engineering, procurement, construction, installation and commissioning (EPCIC) contract from BP Trinidad & Tobago, LLC (bpTT) for the Angelin gas field, located 25 miles (40 kilometers) off the east coast of Trinidad and Tobago.

This EPCIC contract follows the successful completion of a multi-phase engineering contract, including pre-front end engineering design (pre-FEED), front-end engineering design (FEED), and pre-execution engineering contracts previously awarded by bpTT to McDermott for the initial design and execution planning of Angelin. McDermott’s team in Houston led the engineering and execution planning efforts with support and work share from the Company’s engineering center in Chennai, India.

“This is a great opportunity for us to build on the relationship and trust developed through the execution of the FEED for the Angelin project,” said Scott Munro, McDermott Vice President for Americas, Europe and Africa. “Through early engagement and aligning our respective goals, McDermott and bpTT have partnered to optimize the delivery of this very important project.”

Building off its pre-FEED and FEED work, McDermott will provide a turnkey EPCIC solution to design, procure, fabricate, transport, install and commission a six-slot wellhead platform and 26-inch (66 centimeter) subsea pipeline using its project management and engineering team in Houston. The 992-ton (900 metric ton) four-legged main pile jacket and 1,323-ton (1,200 metric ton) four-deck topside for the Angelin project will be constructed at the Altamira, Mexico fabrication facility. The platform and pipeline are scheduled to be installed by McDermott’s DLV 2000. The project demonstrates the versatility of the DLV 2000 for installations of both pipelines and platforms in a single mobilization.

The Angelin project is a dry gas development within the northern Columbus Basin in 213 feet (65 meters) of water. The gas will be exported to the Beachfield/Atlantic LNG and the liquids to the Galeota terminal via a new 13 mile (21 kilometer), 26 inch (66 centimeter) diameter export pipeline. With a design throughput of 600 million standard cubic feet of gas per day, production will be exported through the pipeline to the Serrette Facility and on to the nearby Cassia platform for processing.

The large lump sum contract award will be reflected in McDermott’s second quarter 2017 backlog.

Buchan Oil Production Vessel to Be Decommissioned in Shetland

8 2Repsol sinopec logoAfter 36 years and almost 150mm barrels of oil, the Buchan Alpha facility in the UK North Sea ceased production, as planned, on 12 May 2017.

Buchan Alpha is a semi-submersible moored floating production vessel (originally a drilling rig). Decommissioning plans are well developed and ultimate dismantling and recycling of the vessel was competitively tendered. Repsol Sinopec Resources UK is pleased to announce the contract has been awarded to Veolia to be carried out at its Dales Voe site in Lerwick, Shetland.

8 1BuchanFieldBuchan Alpha

Bill Dunnett, Managing Director, Repsol Sinopec Resources UK said: “Buchan Alpha has made a huge contribution to the UK economy throughout its life, producing more than three times the volume of oil that was originally predicted. We are pleased the decommissioning phase will create further sustained value for the UK supply chain and additional employment for Shetland, building a new model for full facility decommissioning in the UK.

“I would also like to pay tribute to the offshore asset team, who have safely and professionally operated this facility up to its planned cessation of operations date and will continue to do so through decommissioning.”

Paul Wheelhouse, Scottish Government Minister for Business, Innovation and Energy said:

“This is great news, which clearly demonstrates the skills, capabilities and competitiveness of Scotland’s supply chain in securing this contract. Decommissioning is an emerging, but growing, activity, with £17.6 billion expected to be spent in the North Sea over the next decade, as mature fields reach this stage in their project lifecycle. We are already seeing Scottish-based firms seizing opportunities, and securing the lion’s share of value from a range of decommissioning activities, including project management of decommissioning programs and high value, well-plugging and abandonment activity.”

“The Scottish Government is committed to supporting Scottish industry to win decommissioning activity such as the Buchan Alpha. The £5 million Decommissioning Challenge Fund and the Decommissioning Action Plan developed by our enterprise agencies, build on the Program for Government commitment to identify investment opportunities, with a view to improving capacity at Scottish ports and increasing the economic return to Scotland from a variety of removal, disposal and dismantling activities to add to the success in well-plugging and abandonment and other stages of the process.”

Gunther Newcombe, Operations Director of the Oil & Gas Authority, said: “Developing competitive decommissioning capability in the UK’s supply chain is a priority outlined in both the OGA’s decommissioning and supply chain strategies. The OGA is delighted to see the award of Buchan Alpha decommissioning to Veolia’s Dales Voe site in Shetland as this represents a major step in developing a deeper water decommissioning facility in the UK.”

Estelle Brachlianoff, Senior Executive Vice-President Veolia UK & Ireland said:

"We are delighted with the award of the prestigious Buchan Alpha decommissioning contract which reflects our proven safety and environmental track record and our commitment to delivering this project to the highest operational standards. We will be targeting a recycling rate of over 98% at the new Dales Voe decommissioning facility in Lerwick where we will work closely with our partners, Peterson and Lerwick Port Authority to boost the local economy by creating 35 jobs and develop strong relationships with the local community."

The vessel commenced production in 1981 from the Buchan field, located in blocks 21/1A and 20/5A, approximately 156km northeast of Aberdeen, and has subsequently also produced the nearby Hannay field.

Repsol Sinopec Resources UK has secured Oil & Gas Authority approval to suspend production of both the Buchan and Hannay fields and is conducting an area strategy review to screen potential field redevelopment options.

New DNV GL Guidance Puts Submarine Pipelines Safely to Bed

9DNVGL Pip 00010Depending on the interaction between the pipe and soil, submarine pipelines, both exposed and buried, may be subject to severe displacements and impaired pipeline integrity. Soil characterization and pipe-soil interaction assessment are therefore important parts of any pipeline project. DNV GL now launches a new recommended practice (RP), DNVGL-RP-F114 ‘Pipe-soil interaction for submarine pipelines’, solely dedicated to the interaction between the pipeline and the soil.

Pipe-soil interaction assessments are usually far more complex and there can be more uncertainty on the results compared to traditional foundation design. This is due to limitations in soil data along the pipeline route, difficulties in characterization of the soil close to the seabed, dynamic pipeline installation and subsequent design scenarios involving large displacements.

To manage these uncertainties for improved, safe and cost-efficient pipeline design, geotechnical knowledge and guidance is key. However, until now a dedicated industry standard on pipe-soil interactions has been lacking. DNV GL has collected, aligned and reviewed existing guidance, considering recent research, and developed the new DNVGL-RP-F114. The RP provides holistic guidance and recommendations within a geotechnical framework.

Jens Bergan-Haavik, Senior Geotechnical Engineer, DNV GL – Oil & Gas, says: "Geotechnical competence is required to understand the complex soil behaviour close to the pipe during installation and operational conditions, in addition to managing the inevitable uncertainties related to limited soil data and to simplifications in the engineering models. The pipe-soil RP highlights the value of geotechnical input in projects to ensure robust pipeline design solutions. The RP also provides recommendations on how to safely avoid over-conservatism through specification of state-of-the-art laboratory tests.”

Cathrine Torp, Communication Director, DNV GL – Oil & Gas, says: “According to DNV GL’s seventh annual benchmark study, Short-term agility, long-term resilience, 27% of senior players in the sector believe there will be a significant global increase in the approval of new offshore oil and gas pipeline projects globally over the three years. As increased knowledge is the best cure for managing uncertainties, this new RP will support pipeline projects with the insights they need for safe and efficient installations and operations.”

DNVGL-RP-F114 replaces the pipe-soil interaction guidance given previously in:

  • DNVGL-RP-F105 Free spanning pipelines
  • DNVGL-RP-F107 Risk Assessment of Pipeline Protection
  • DNVGL-RP-F109 On-bottom Stability Design of Submarine Pipelines
  • DNVGL-RP-F110 Global Buckling of Submarine Pipelines
  • DNVGL-RP-F111 Interference between Trawl Gear and Pipelines
  • DNVGL-RP-F113 Pipeline Subsea Repair

The new RP, DNVGL-RP-F114 ‘Pipe-soil interaction for submarine pipelines’, can be downloaded here.

SPE Offshore Europe 2017 Confronts the Cyber Threat to the Oil and Gas Sector

10 1OffshoreEurope LOGO 2017 copyThe scale and severity of attacks on industrial cyber systems is growing and has the potential to put oil and gas infrastructure, critical processes and workers’ lives in danger. SPE Offshore Europe 2017 will host a keynote panel session on cyber and physical attacks on the industry to help delegates understand the risks, manage detection of threats and defend against malicious actions.

BBC security correspondent, journalist and author, Frank Gardner OBE, who survived being shot six times by Al-Qaeda terrorists in a Riyadh suburb in Saudi Arabia, will be part of the expert panel.

10 2SPE BBC Frank Gardner altFrank Gardner, the BBC’s security correspondent, journalist and author, will join the ‘Cyber and Physical Security’ panel session at SPE Offshore Europe 2017

The session will be chaired by Deirdre Michie, chief executive of Oil & Gas UK and will involve Professor David Stupples, Director of Electronic Warfare Systems Research, University of London, who will reveal research into the cyber threat specific to the oil and gas industry. In particular, he will talk about cyber attacks on SCADA – supervisory control and data acquisition. Other keynote speakers include Dominic Armstrong, president of Herminius, a risk management and intelligence consultancy.

“The cyber threat is no longer an ‘emerging’ risk but one that is forcibly having a severe and hazardous impact on day-to-day operations,” said Sue Frye, Director Europe, Caspian, & Sub-Saharan Africa Events for the Society of Petroleum Engineers. “Understanding and managing the risks is the responsibility of everyone in the sector, from rig workers to investors. Delegates will leave with a better understanding of the shifts in global strategic risks to oil and gas operations and the ‘new realities,’ threats and vulnerabilities that companies are facing.”

Under the theme Embracing New Realities: Reinventing our Industry, SPE Offshore Europe 2017 will offer more than 65 free-to-attend technical presentations and 11 keynote panel sessions combined with business breakfasts and topical lunches. A ‘new for 2017’ Decommissioning Zone will feature a themed exhibition and conference space showcasing decommissioning technology and service providers and a conference programme organised in association with Decom North Sea, IMechE, ITF and SUT.

SPE Offshore Europe has been held biennially in Aberdeen since 1973. It is the largest E&P conference and exhibition outside North America.

For more information, click here.

Global Marine Group Reports Busy Spring Period

11 1GMS066 CWind Phantom Naming CeremonyThe Global Marine Group (GMG), a market leader in offshore engineering, is reporting a successful first five months of 2017 with a strong outlook for the rest of the year. All key assets from the GMG fleet are currently mobilized, either supporting maintenance zone agreements around the world, or on installation, maintenance or repair contracts.

“As we head into the summer months, we are extremely pleased about our robust activity level, which we feel is a reflection of our high performance standards, reputation and strong relationships across the industry,” said Ian Douglas, CEO of the Global Marine Group. “We are consistently mobilising quickly to deliver high-quality, on-time and on-budget solutions to all our customers’ demands experience, proven know-how and the resources to get things right first time. We have the personnel, vessels and technology to meet these demands.”

11 2GMS066 CS RecorderCWind, the group’s offshore power focused business, has its 18-strong fleet of Crew Transfer Vessels (CTVs) and another eight chartered vessels, busy supporting clients on key wind farms across the UK and Europe with a variety of subsea and topside solutions. In February of this year it was announced that CWind would incorporate the resources and power cable capabilities of its parent company, GMG, to expand the breadth of services it offers to wind farm owners and developers.

In addition to completing major scopes of work at the Godewind Offshore Wind Farm using a DPS-2 vessel, CWind has also recently utilised a key asset in the GMG fleet, C.S. Sovereign, to complete back-to-back power cable repairs. First, CWind finished the successful repair of a vital power cable that reconnected the Isles of Scilly to mainland electricity, and then another repair commission in the North Sea.

CS Recorder, a recent addition to the group’s fleet, has just completed remedial burial work on the CIEG (Channel Islands Electricity Grid) power cable between Guernsey and Jersey. The project benefitted from the mobilisation and deployment of another of the group’s assets, the Q1000 jet-trenching Remotely Operated Vehicle (ROV), which offers 1000hp of total installed and variable jetting power. The Q1000 is ideal for trenching pipelines, umbilicals and cables to a burial depth of 3m at a speed of up to 400m per hour. CS Recorder will shortly begin work on another installation project.

Further afield, the group’s telecoms focused business, Global Marine, who have installed over 300,000km or 21% of all subsea cable across the world, has the Networker and her crew currently primed for a fibre optic cable installation project between Karimun and Batam in Malaysia. The Networker is the first purpose-built cable-working barge in South East Asia, and one of the largest vessels of her kind, ideally designed to deliver projects in shallow waters and narrow corridors.

ELA Container Offshore GmbH Delivers Special Offshore Control Room for VBMS Ndeavor

ELA Container Offshore GmbH has recently delivered an ELA Offshore Multipurpose Room to VBMS, which will be used on board their MV Ndeavor, a 7,500 DWT DP-2 vessel, built and outfitted for cable-lying in 2013 by Boskalis.

12 1ELAContainer auf Ndurance en Ndeavor van VBMSVBMS MV Ndeavor

VBMS is a subsidiary of Royal Boskalis Westminster N.V., specialized in subsea power cable installation, Balance of Plant maintenance for the renewable market, SURF installation for the oil & gas market and installation of interconnectors.

After delivery of the Multipurpose Room to the VBMS warehouse in Moerdijk in The Netherlands, the container was transferred to a state of the art control room to be used to operate their ROV Trenchers, which lay and bury power cables in shallow and deep water. The control room provides capacity for two persons who can monitor the ROV on multiple screens.

12 2ELA VBMS Control Room kleinThe delivered Multipurpose Room was converted into a Control Room, providing capacity for two crew members who can monitor the ROV on multiple screens.

The customer was looking for a high quality room to accommodate their ROV monitoring systems and crew in a comfortable and safe environment. ELA Offshore containers are ‘’Made in Germany’’ and are compliant with all necessary health & safety regulations to provide high quality accommodation. “Since the lead time was very short and the deadline of the project was approaching rapidly, we were able to deliver the container from stock on very short notice. The container was painted in VBMS house colours, enabling our customer to install all their equipment and run tests before starting the project on board”, says Frank ter Haak, Business Development Manager at ELA Container Offshore. “After arrival of the container we were very pleased with the high quality finishing and the superb insulation. We were particularly pleased with the fact that both A60 marine doors were equipped with a window, in order to have day light entering the room during work shifts”, says Jan Bes, Subsea Equipment Supervisor at VBMS.

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

The 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 20ft High-Cube ISO standard dimensions
  • Highest quality standards

Baker Hughes and GE Announces Executive Team Leadership

13Baker GE LorenzoSimonelliBaker Hughes Incorporated (NYSE:BHI) and General Electric Company (NYSE:GE) announces the executive team that will lead Baker Hughes, a GE Company upon closing of their proposed transaction to combine GE’s Oil & Gas business with Baker Hughes.

The combined executive team, which has considerable experience, deep expertise and will drive global impact, will be as follows:

Lorenzo Simonelli, President & CEO

Lorenzo Simonelli, President & CEO
Maria Claudia Borras, President & CEO, Oilfield Services
Belgacem Chariag, Chief Global Operations Officer
Rod Christie, President & CEO, Turbomachinery & Process Solutions
Harry Elsinga, Chief Human Resources Officer
Jennifer Hartsock, Chief Information Officer
Matthias Heilmann, President & CEO, Digital Solutions
Jack Hinton, Chief Health, Safety and Environment (HSE) Officer
Nicola Jannis, Chief Business Development Officer
Derek Mathieson, Chief Marketing and Technology Officer
Jody Markopoulos, Chief Engineering and Supply Chain Officer
Will Marsh, Chief Legal Officer
Neil Saunders, President & CEO, Oilfield Equipment
Uwem Ukpong, Chief Integration Officer
Brian Worrell, Chief Financial Officer

For additional information regarding the executive leadership team of Baker Hughes, a GE Company, please click here.

The company will have operations in more than 120 countries, approximately 70,000 employees and hold dual headquarters in Houston, Texas and London, UK.

As previously announced, GE CEO Jeff Immelt will serve as Chairman of the Board of Directors of Baker Hughes, a GE Company, and Martin Craighead, currently Chairman and CEO at Baker Hughes, will serve as Vice Chairman of the Board.

Helix Announces Executive Management Changes

15Helixlogo copyHelix Energy Solutions Group, Inc. (NYSE: HLX) announced certain changes within its executive management team consistent with the company’s long standing succession plan, effective June 5, 2017. Erik Staffeldt, who has served as Helix’s Vice President – Finance and Accounting since July of 2015, has been promoted to the position of Senior Vice President and Chief Financial Officer. Tony Tripodo, who has served as Helix’s Executive Vice President and Chief Financial Officer since June of 2008, will be transitioning to the position of Executive Vice President and Senior Advisor. In his new role Tony will be responsible for assisting Owen Kratz, Helix’s President and Chief Executive Officer, in continuing to develop the long term business and financial strategy of the company. Tony will continue to remain involved in the company’s financial planning and in generally assisting with the orderly transition of some of his former responsibilities as Chief Financial Officer.

In connection with these appointments, Owen Kratz, President and Chief Executive Officer of Helix, stated, “Erik has earned the confidence of the board and the executive management team and has demonstrated the ability to take on increasing responsibilities since joining Helix in 2009. In addition, Tony’s demonstrated capabilities in managing the financial affairs of the company and his intimate knowledge of the business make him well suited for the new role we have asked him to perform.”

IMCA Appoints Harke Jan Meek as New President

14Harke Jan Meek IMCA PresidentIn accordance with its constitution, the International Marine Contractors Association (IMCA) announces that Bruno Faure (TechnipFMC), having completed his two-year term of office, has stepped down as President of IMCA; he remains on the Board of the association. Harke Jan Meek, Chief Commercial Officer at Heerema Marine Contractors, now becomes IMCA’s new President and Chairman of the Board, and Iain Grainger, Vice President Commercial at McDermott International Inc. becomes the new IMCA Vice President.

In addition, well known industry executive Frits Janmaat, who has been a Council member of IMCA since its formation in 1995, has stepped down from the Board upon his retirement from Allseas. Accordingly, Pieter Heerema, Vice President of Projects at Allseas has joined the Board.

Allen Leatt, IMCA Chief Executive, stated: “Bruno Faure has made a tremendous contribution to IMCA over the last two difficult years for our industry, and we thank him for his dedication and wise counsel. We very much welcome Harke Jan Meek as IMCA’s new President and look forward to his drive, energy and leadership over the next two years. Likewise, we look forward to Iain’s guidance, challenge and leadership. We also thank Frits Janmaat for his continuous support to IMCA from its very early days and welcome Pieter Heerema to the Board.”

Stress Engineering Services Partners with DeepMar Consulting to Expand Services

16Stress Engineering Services logoStress Engineering Services, Inc., (SES) a global leader in consulting engineering services, has teamed up with DeepMar Consulting to expand its existing upstream service offerings. The integrated team will work alongside clients to increase assurance of successful projects in regards to health, safety and environment (HSE), reliability and efficiency.

Leveraging combined experience in the oil and gas industry, the partnership is focused on providing ‘end-to-end’ solutions that address the entire life of field across all disciplines: drilling/completion, production/asset and various intervention solutions. A seamless integration of verification and validation processes can be provided by using core competencies of both companies, including analysis, testing, materials, real-time health monitoring, predictive forecasting, efficient work flow processes and operational guidance.

Chuck Miller, vice president of Stress Engineering, said, “By teaming DeepMar’s 35 years of experience in subsea oil and gas systems with the sheer breadth of SES’s engineering services, we are bridging the gap between analysis results and operational decision-making. DeepMar offers valuable hands-on experience from the operator’s perspective and the people in the field.”

Brian Saucier, president, DeepMar Consulting, said, “In its 40-year track record, SES has demonstrated a broad range of capabilities alongside innovative physics-based models for design and assessment. We are looking forward to working with the team at SES in offering a broader range of integrated solutions to provide significant value and cost-savings through enhanced design and operational assurance.”

PIRA Energy Market Recap for the Week Ending June 5, 2017

17PIRALogoImproving Economic Outlook, Determined OPEC and Tightening Balances Should Improve Prices

An improving global economic outlook, determined OPEC, tightening supply/demand balances and constructive positioning should lift oil prices. Market sentiment has been extremely bearish, unduly so in PIRA’s opinion because we do not see oil markets flooded with shale oil, China’s economy is not declining but continues steady growth and OPEC’s decision to extend cuts will substantially reduce supply. With global crude demand increasing sharply while supply grows modestly, substantial offshore and onshore crude inventory declines are forecast which should lift oil prices. Global geopolitical risks to supply remain elevated. Global refinery runs are outpacing capacity additions, tightening utilization and supporting generally healthy refinery margins in 2017.

Recovery Stalls on the Weather

Cool Kickoff to Cooling Season Impeding Price Appreciation — While U.S. temperatures this month were close to normal in May, such conditions failed to counter bearish factors (including gas-to-coal switching in the east, as well plentiful hydro out west). Moreover, near-term weather forecasts that extend to mid-June are weighing on Henry Hub (HH), and other prices as they favor decidedly lower temperature readings than those of a year ago — and also cooler than normal.

Prices Heat Up Ahead of Summer in a Parched Europe

While weather has been keeping demand at year ago levels, hydro generation during May has been a more bullish price driver, with our balances showing sizeable declines across France and Southern markets (over 33% down year-over-year combined) setting multi-year lows. Our modeling has been based on almost 6 GW of additional nuclear year-over-year for France in 3Q 2017, but the current poor water levels exacerbate the risks of cooling-related unavailability, even at relatively lower air temperatures. Spanish 3Q 17 prices have increased to a level that implies that about 10 GW of combined coal and gas will be needed to run in the summer, about 1 GW above expectations. The back of the French curve has also rebounded, as the outlook for firm capacity (nuclear and coal) in France is looking increasingly uncertain, following Macron’s election and his appointment of Hulot as Energy Minister. As Macron’s government defines its energy policy, there are risks that the French system will further tighten – especially during the winter months.

Evenings Star

Following two very weak months in the low 6,000s, NP15 on-peak implied heat rates increased to the 8,000 mark in May thanks to market tightness during the evening hours of two heat waves amid ongoing generation outages. June on-peak prices have been revised up reflecting near-term weather risks. Positive adjustments for Palo Verde extend across the curve. While projections for Cal hubs beyond June are little changed, we note upside risks associated with weather, fire-related transmission outages, and SoCal gas supply.

Ethanol Prices Climbed in May

Manufacturing margins improved. Ethanol sold at a discount to gasoline in Chicago and New York. D6 RIN values soared at the end of the month. The 2017/2018 sugarcane harvest in Brazil’s South-Central region ramped up slowly due to heavy rain. European ethanol prices peaked during most of May but plunged at the end of the month.

Rebalancing Begins as U.S. Crude Stocks Decline in May

The rebalancing of oil markets has begun, with tangible signs of declines in the large surplus that developed in North America over the past two years. U.S. crude oil stocks declined some 20 million barrels in May, on the heels of a smaller draw in April. Larger crude stock draws are coming this summer. U.S. crude production is growing again, primarily in the Permian Basin. But that growth is being absorbed by higher refinery runs and increasing crude exports. Western Canadian supplies are recovering from the recent Syncrude fire, with more growth in bitumen output expected by year-end from several oil sands projects. More pipeline projects are being planned, following the recent start-up of the DAPL pipeline in North Dakota.

Hydro and Seasonal LNG Work Against Injection Needs

Gas-to-power demand has been supported by a power market with weak nuclear and hydro production for much of the year. Now that nuclear production is back to a seasonally normal 57 GW, the focus turns more squarely onto hydro production, where PIRA anticipates output to be 23.4% lower than normal this year, which should provide strong support for gas demand from power generators. Even though nuclear production has normalized, there is a serious risk for the low hydro situation to bring nuclear production back in the focus through cooling water needs for these generators, as we saw in 2003, when nuclear power production was forcibly reduced by 3 GW over July/August.

Coal Prices Hold Up, Bearish Moves Lie Ahead

The coal market has found some support from robust coal demand in Asia and a weaker U.S. dollar. However, some of the key pillars of strength on the demand side will soon weaken, which will force the supply side to choose between volumes and price. China’s import demand is expected to remain above prior-year levels in May and June, although rebounding domestic production, adequate stockpiles and fading demand growth should pull imports (and price) lower.

Busy Week for Data, Some Surprises but No Changes to Outlook

The recent pace of job growth in the U.S. was disappointing, though hardly alarming. The most eye-catching part of the May labor market report, in fact, was the fourth consecutive monthly decline in the unemployment rate. In spite of a tighter labor market, however, there are few signs of economic overheating. In Europe, the labor market continues to improve, but inflation remains subdued. In Japan, evidence for faster growth continued to pile up. Business confidence in China declined in May, and hinted at a modest slowing in activity going forward.

Propane Stocks Increase at Largest Volume of Current Injection Season

Propane stocks increased by 3.4 million barrels, which is the largest weekly build of the current injection season. Propane exports dropped to 586 MB/D. The decline in exports was expected due to the number of reported cargo cancellations. Stocks in PADDs I, IV and V are in good shape being in the mid-range of the 5-year average. Stocks in PADDs II and III are still relatively low being at the low of the 5-year average for this time of the year. Propane imports soared to 208 MB/D, which implies increasing Canadian propane field production. Propane demand increased to 927 MB/D.

RGGI: States’ Least Common Denominator Effort?

Pricing for the benchmark RGGI contract is low, and the June auction will introduce more supply. There are enough allowances in circulation to cover the full Compliance Period reconciliation in March 2018, but compliance players must acquire allowances by participating in auctions and/or engaging the secondary market. The RGGI Program Review continues, with stakeholders awaiting Policy Case modeling. RGGI seems to lack ambition for anything more than a “least common denominator” approach for linked carbon efforts. PIRA expects resistance to further significant price drops as there is only limited additional downside left before the floor price is reached. PIRA does not see moves toward higher allowance pricing until clearer policy signals emerge later this year.

Algeria Comes Face to Face with Emerging LNG Surplus

The emerging global LNG supply surplus is already rearing its head in Asia, influencing everything from LNG spot prices to long-term negotiations between Qatar and Japan, which are becoming testier by week. The recent surge of LNG imports into the Mediterranean will continue to be a major headache for Algeria, which does not have the marketing flexibility of a Norway or a Russia. Already underway, the surplus will increasingly spill into the Mediterranean in the second half of 2017, as Qatar needs to reposition volumes in order not to undermine Platts JKM prices in Asia, and the best place to do so from a pricing standpoint at the moment is in the Mediterranean.

Japan Maintenance Continues on Track

Runs continued to decline amid increasing turnarounds. Crude imports fell back about 1 MMB/D and that produced a 3.4 million barrel crude stock draw. Crude stocks are again closing in on their record low. Finished product stocks drew a modest 0.2 million barrels. Implied major product demand was fractionally change, with strength in gasoline, kero and jet, offsetting weakness in fuel oil. Refining margins were higher on the week by $0.35/Bbl, but remain soft. The implied marketing margin fell for the third straight week, and are now just under their historical mean levels. What had been a helpful cushion and offset to weak refining margins has now largely evaporated.

U.S. Ethanol-blended Gasoline Manufacture Jumps

Ethanol-blended gasoline manufacture increased to a nine-month high 9,421 MB/D the week ending May 26 from 9,394 MB/D during the preceding week. This was the fifth highest volume on record. Inventories built by 79 thousand barrels to 22.8 million barrels, up 2.0 million barrels (9.6%) from this time last year. Domestic ethanol production rose 10 MB/D to 1,020 MB/D.

Iberia is Quietly Linking More and More with the Rest of Europe

Europe will be buying more LNG to replace declining production in N.W. Europe. In this context, Iberian gas balances will be gaining sway over the broader European landscape, as Spain tends to be the most desirable location to first deliver LNG. For now, logistical constraints will keep the Spanish step towards a broader role at bay, which is why Spain tends to have the most expensive pricing among Central and Western European hubs. Iberia remains relatively isolated from the rest of the Continental market making the Spanish hub susceptible to price spikes, when LNG is not readily or cheaply available.

ERCOT Market Design – Putting the NRG/Calpine Proposals into Perspective

Market design has been garnering increasing attention in ERCOT as low power prices resulting from weak natural gas prices and increased renewables penetration continue to challenge owners of merchant generation. NRG and Calpine on May 10 filed a jointly commissioned report with the Public Utility Commission of Texas (PUCT). The report contains suggestions for changes to the market design in ERCOT, ranging from tweaks to the Operating Reserve Demand Curve to an overhaul of the transmission planning and cost allocation process in Texas. Generally, these proposals are intended to improve price signals, in particular offering more support for generators located near load centers and congested areas of the grid. The proposed changes will likely be discussed at the PUCT as well as in ERCOT stakeholder committees.

Trump’s Paris Decision Underscores Policy Trajectory of Past Five Months

President Trump formally announced on June 1 that the U.S. would pull out of the Paris Agreement covering post-2020 greenhouse gas (GHG) emissions. The tone of the statement was rather clear – offering signals to both his supporters and to the overwhelming majority of the world’s countries that had signed the agreement and support coordinated climate action. While resonating strongly in the broader media, the symbolic decision is not necessarily milestone news for energy sector fundamentals. Rather, this announcement highlights a consistent trajectory of Trump’s energy/environmental policy activities of the past five months – with a number of key detailed policy decisions still ahead.

U.S. Commercial Stocks Again Below Last Year But Now Will Stay Below

U.S. oil demand (adjusted) in May has been very strong with the latest four weeks up 5.0% (or 950 MB/D) versus last year. High runs and strong demand pulled overall stocks 5.2 million barrels lower last week with crude stocks falling 6.4 million barrels, showing its eighth consecutive weekly draw and the largest of the year. Gasoline inventories drew again last week, declining 2.9 million barrels. This week has another large crude stock decline of 5.5 million barrels with Cushing crude stocks decreasing 1.2 million barrels.

Despite Weaker Energy Markets, Financial Stresses Remain Low

In general, financial stresses remain extremely low, as the St Louis Fed stress index again moved sharply lower and the S&P 500 continued its climb above the 2,400 level, with it again setting new record highs. Commodities had another negative week, particularly energy, but investment grade, high yield, and emerging market debt all posted positive performances, though the price on high yield energy debt fell.

Opening Print

When the markets think about the Dakotas they typically envision spring wheat (Minneapolis contract) along with some specialty crops like sunflowers, flax, and others. The market also sees low corn and soybean yields along with poor cash basis as has historically been the case, making this area more of an afterthought that anything else. However, as the traditional corn and soybean Belt becomes more and more redefined towards the west, it would be foolish to just write off this area as an add on.

EIA Affirms Higher Baseline, but Nixes Subsequent Growth

The NYMEX futures selloff continued yesterday in the wake of the latest EIA storage report which detailed far greater injections than industry expectations. The price response was likely amplified by reactions from speculators which have been sitting on large and growing net long positions this year. From a fundamental standpoint the most recent EIA Monthly Crude Oil and Natural Gas Production (914) report — updated to March 2017 — affirms the higher baseline of U.S. production established in last month’s report (for Feb 2017) but fails to show follow-through for March. The higher baseline of production reaffirmed by the EIA this month results in greater impact on the year-over-year comparisons, or, as is the case, smaller deficits. Yet, the lack of momentum following February’s production numbers adds uncertainty on the timing of the production recovery.

Split of German-Austria Price Zone to Shift Flows, but Limited Impact on Germany

E-Control and BNetzA, the Austrian and German regulators, agreed to the introduction of a congestion management scheme at the border between the two countries. The new scheme, starting from October 1, 2018, limits the long-term cross-border capacity to at least 4.9 GW. This decision would lead to a considerable shift of the flows in and out of Austria. On balance the impact on the German pricing dynamics should stay fairly limited. A large amount of German commercial flows toward Austria are to be considered transit flows toward Switzerland or Czech Republic, so those markets should be able to import directly from Germany, when needed.

Coal Pricing Bucks Weaker Oil Market, Shifts Higher on Asian Demand

Despite the downshift in oil and gas prices, seaborne coal prices rallied this week, with FOB Newcastle prices leading the charge, rising by $2.50/mt across the forward curve. CIF ARA and FOB Richards Bay forwards increased by $1.50/mt at the front of the curve, however, while backwardation in the CIF ARA forward curve widened this week, backwardation in the FOB Richards Bay curve narrowed slightly. Strength on the demand side continues to underpin the front of the market, particularly in Asia. However, PIRA believes that import demand from China and elsewhere in Asia will soon fade, particularly if summer weather is not as supportive as the July/August heatwave last year.

U.S. March 2017 DOE Monthly Revisions: Demand and Stocks

EIA just released its final monthly March 2017 (PSM) U.S. oil supply/demand data. March 2017 demand came in at 20.0 MMB/D, which was 427 MB/D higher than the weeklies. Total product demand grew 2.1% versus year-ago or 417 MB/D, compared to the March 2016 PSM data. It reversed the year-on-year demand decline seen in February, which had been the first decline seen since July 2016. End-March total commercial stocks stood at 1,341 million barrels. Compared to final March 2016 PSA data, total commercial stocks were higher than year-ago by 14.6 million barrels, versus an excess of 36.3 million barrels seen at end-February.

Global Equities Still Setting Record Highs

Many of the benchmark equity indices continue to set record highs. The U.S. S&P 500 continued its climb above the 2,400 level. Housing, consumer discretionary, and materials performed the best on the week, while energy was again the clear laggard. International indices also did well, with Japan doing the best, while Europe and global, ex-U.S., also outperformed. Latin America fell back on the week.

Saudi Arabia: Despite Higher Revenues, Its Financial Cushion Continues Falling

Saudi’s foreign exchange reserves for April showed a continuing decline that has averaged about $8 billion/month since 4Q16. Many of the other financial indicators that we track remain stable. Since the joint OPEC / Non-OPEC agreement was negotiated at the November 2016 OPEC meeting, Saudi oil revenues are estimated to have risen by $26 billion annualized, or 22%. In this context, the agreement has been effective in boosting top line revenues, along with reducing global supply and inventory overhangs. Even so, it has yet to reverse the drain on Saudi financial reserves, though a significant financial cushion remains.

March 2017 U.S. Crude Growth Decelerates

U.S. crude and condensate actuals for March 2017 came in at 9.1 MMB/D, up 62 MB/D month-on-month, down 76 MB/D year-on-year. Texas production grew only 3 MB/D month-on-month, and may be signaling bottlenecks that are slowing growth.

Are Companies Paying Too Much for Permian Acreage?

The Permian has seen a frenzy of M&A activity. Over $17B of deals have been made so far this year at an average price of $24M/acre, with some transactions seeing valuations in excess of $50M/acre. The prolific nature of the Permian with its multiple stacked intervals and high EURs appears to justify these high acquisitions prices. PIRA analysis shows that based on the average transaction price of $24M/acre, only three wells per 320 acre spacing unit are needed to achieve a land acquisition laden 10% IRR after tax at $50 WTI. In much of the play, up to 12 wells could potentially be placed on a 320 acre unit. However, an important key variable is the pace of development, with rapid development necessary to achieve acceptable rates of return.

Aramco Pricing Adjustments: Clearly Discouraging Liftings

Saudi Arabia's formula prices for July were just released. PIRA analysis of those terms concludes that liftings are clearly being discouraged in all regions. Terms were raised in the three major markets more than our regional drivers would have suggested. In addition, Saudi direct burn of crude peaks in summer, meaning there is less available for export. Lastly, the pricing terms are consistent with the decision coming out of the most recent OPEC meeting to extend the production cuts through 1Q18, and do whatever it takes to continue cleaning up the global excess.

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.

Ensco and Atwood Oceanics Enters into Merger Agreement

1 ensco plc logo1 2AtwoodlogoEnsco plc (NYSE: ESV) and Atwood Oceanics, Inc. (NYSE: ATW) jointly announced on Tuesday, May 30, 2017, that they have entered into a definitive merger agreement under which Ensco will acquire Atwood in an all-stock transaction. The definitive merger agreement was unanimously approved by each company’s board of directors.

This Smart News Release features multimedia. View the full release here.

Under the terms of the merger agreement, Atwood shareholders will receive 1.60 shares of Ensco for each share of Atwood common stock for a total value of $10.72 per Atwood share based on Ensco’s closing share price of $6.70 on 26 May 2017. This represents a premium of approximately 33% to Atwood’s closing price on the same date. Upon close of the transaction, Ensco and Atwood shareholders will own approximately 69% and 31%, respectively, of the outstanding shares of Ensco plc. There are no financing conditions for this transaction.

Ensco expects to realize annual pre-tax expense synergies of approximately $65 million for full year 2019 and beyond. The combination is expected to be accretive on a discounted cash flow basis.

Ensco Chief Executive Officer Carl Trowell said, “The combination of Ensco and Atwood will strengthen our position as the leader in offshore drilling across a wide range of water depths around the world – creating a broad platform that we can build upon in the future. This acquisition significantly enhances our high-specification floater and jackup fleets, adding technologically advanced drillships and semisubmersibles, and refreshing our premium jackup fleet to best position ourselves for the market recovery. We believe that the purchase price for these assets represents a compelling value to our shareholders, which is augmented further by expected synergies from the transaction.”

Mr. Trowell added, “By bringing together our high-specification rig fleets, technology and innovation, and talented rig crews, we plan to continue delivering high levels of operational and safety performance to an even larger group of clients. We will remain one of our industry’s best capitalized companies. Our combined financial strength, diverse customer base and larger scale should lead to greater strategic and competitive advantages as well as cost efficiencies, allowing for opportunistic investments through the market cycle.”

Atwood’s Chief Executive Officer Rob Saltiel stated, “The combination is an ideal strategic fit. Both companies are passionate about operational excellence, safety and customer satisfaction with core values and cultures that are perfectly aligned. We believe the combined company will offer an unmatched rig fleet and workforce. These attributes, anchored by a strong balance sheet, should enable the company to thrive as market conditions improve and allow Atwood shareholders to fully participate in the market recovery.”

BP Announces Start of Production from Quad 204 Project, West of Shetland

2BP GlenLyonFPSOUK project is the third of seven new upstream major projects expected to come on stream for BP in 2017.

BP, on behalf of co-venturers Shell and Siccar Point Energy, is pleased to announce first oil from the redeveloped Schiehallion Area, following completion of the multi-billion-pound Quad 204 project in the west of Shetland region, offshore UK.

Schiehallion and the adjacent Loyal fields were first developed in the mid-1990s and have produced nearly 400 million barrels of oil since production started in 1998. With the fields’ redevelopment through the Quad 204 project, BP and co-venturers expect to unlock a further estimated 450 million barrels of resources, extending the life of the fields out to 2035 and beyond. Production from the project is expected to ramp up through the remainder of 2017 to a plateau level of 130,000 barrels of oil per day.

The project has included the construction and installation of the world’s largest harsh water floating, production, storage and offloading (FPSO) vessel - the ‘Glen Lyon’ -a major upgrade and replacement of subsea facilities and a continuous drilling program of up to 20 new wells to enable the full development of the reserves.

BP is planning to double its UK North Sea production to 200,000 barrels of oil equivalent a day (boe/d) by 2020 and sustain a material business in the region for several decades. Production from the new Clair Ridge major project is expected next year. Over the next 18 months, BP plans to participate in up to five exploration wells in the UK, in addition to drilling approximately 50 development wells over the next 3-4 years.

Quad 204 is the third of seven Upstream major projects BP expects to bring online in 2017, following the earlier start-ups of the Trinidad onshore compression project and the Taurus/Libra development of the West Nile Delta project in Egypt. New projects starting up through 2016 and 2017 are expected to deliver 500,000 boe/d net new production capacity for BP by the end of this year. With further projects beginning production through to the end of the decade, BP expects approximately 800,000 boe/d production from new projects by 2020.

Bob Dudley, BP Group Chief Executive, said: “The start of production from Quad 204 - one of the largest recent investments in the UK - is an important milestone for BP, marking a return to growth for our North Sea business. As one of the series of important, higher-margin major projects that are now steadily coming on line for BP, it also underpins our expectation for growing production and cash flows from our Upstream business over the coming few years.”

Mark Thomas, Regional President for BP’s North Sea business, said: “In safely delivering first oil from the Quad 204 project, we have succeeded in one of the largest ever UK mid-life offshore redevelopments. BP has developed a strong track record of finding, developing and operating big offshore oil resources west of Shetland - we have and will continue to use the latest technology to maximize recovery from the Schiehallion Area.”

Since the Quad 204 project was sanctioned in 2011, over £2 billion of contracts have been awarded to UK companies.

Deep Water Production Begins at Newest FPSO in Brazil Santos Basin

Royal Dutch Shell plc, through its subsidiary BG E&P Brasil Ltda. (Shell) and consortium partners in Lula South, announce that deep-water production has started at the FPSO P-66, which is located in the Brazilian pre-salt of the Santos Basin.

Positioned in 2,150-meter water depth, the P-66 can process up to 150,000-barrels of oil and 6-million cubic meters of natural gas per day. The unit is the first in a series of standardized vessels operated by Petrobras to begin production within the BM-S-11 block consortium and the seventh to produce within the consortium overall.

3Shell 66 fpso sailing to its final destination copyP-66 FPSO sailing to its final destination. Image Courtesy Petrobras

“Achieving production at Lula South is an important accomplishment in the Santos Basin, and we recognize Petrobras’ delivery of this critical milestone,” said Andy Brown, Upstream Director for Shell. “The consortium has additional FPSOs in this series planned over the next three-years. Across Shell’s deep water business in Brazil, we’re investing in projects with competitive break-even prices, and our presence as Brazil’s second largest oil producer continues to grow.”

Shell has a 25%t stake in the consortium developing the Lula field in the BM-S-11 block. Petrobras operates the field with a 65% interest, and Galp, through its subsidiary Petrogal Brasil, holds the remaining 10-percent interest. The P-66 is the tenth deep-water FPSO in operation across Shell’s working interest in the pre-salt areas of Santos Basin. Shell operates two additional FPSOs offshore Brazil.

Shell’s deep water business also extends to the U.S. Gulf of Mexico, Nigeria, and Malaysia and, globally, produces approximately 725-thousand barrels of oil equivalent per day (boe/d); production is expected to reach approximately 900-thousand boe/d by the early 2020s, from already discovered, established areas.

The FPSO P-66 is positioned approximately 290-kilometers offshore Brazil and began production from the 7-LL-60D well.

The Shell-operated FPSOs offshore Brazil are BC-10 and Bijupirá & Salema.

Shell has a working interest in nine other, producing FPSOs across both the Campos and Santos Basins: Lula Pilot (Cidade de Angra dos Reis FPSO), Sapinhoa Pilot (Cidade de São Paulo FPSO), Lula Northeast Pilot (Cidade de Paraty FPSO), Iracema South (Cidade de Mangaratiba FPSO), Sapinhoa North (Cidade de Ilhabela FPSO), Iracema North (Cidade de Itaguai FPSO), Lula Alto (Cidade de Marica FPSO), Lula Central (Cidade de Saquarema FPSO), and Lapa (Cidade de Caraguatatuba FPSO).

Bibby Offshore Awarded Significant Contract with TAQA

Bibby Offshore, a leading subsea services provider to the oil and gas industry, has been awarded a significant contract with TAQA for subsea construction works in the Eider field, located 184km north-east of Shetland.

With offshore operations to be completed this summer, the six month contract will see Bibby Offshore adopt a multi-vessel approach, utilizing its subsea support and construction vessel Olympic Ares, and its diving support vessel, Bibby Polaris.

4Bibby Barry MacleodBarry Macleod, UKCS managing director at Bibby Offshore

The project comprises the connection of the existing Otter Production pipeline to the existing Eider Oil Export pipeline, and connection of the existing Tern-Eider water injection pipeline to the existing Otter water injection pipeline using subsea bypass spools.

Bibby Offshore will provide spool piece metrology, barrier testing, removal of existing production and water injection spools and pre-commissioning support. The team will also manage procurement, fabrication and installation of new bypass spools.

Barry Macleod, UKCS managing director at Bibby Offshore said: “Our multi-vessel approach enabled the project team to tailor our capabilities to TAQA’s requirements, which plays a key role in demonstrating our ability to successfully deliver a variety of workscopes.

“We have supported TAQA’s operations previously and are delighted to have been selected to continue and strengthen this relationship throughout 2017.”

Add Energy Awarded £1 Million Contract with BP In Egypt

5Add Energy 034Add Energy, the international energy consultancy provider, has been awarded a maintenance build contract worth more than £1 million with BP for work on West Nile Delta (WND), a development located just off the north coast of Egypt.

The contract, worth almost £1.4 million, will see Add Energy carry out the development of a full asset maintenance build and will include the delivery of an asset register and functional hierarchy build, equipment criticality assignment, development of maintenance strategies for critical and non-critical equipment, job plans and procedures, critical sparing and BoMs development.

The Add Energy project team will be operating from Aberdeen, and will require the project manager and principal consultant to travel to the BP WND project offices in London over the course of the 18-month project.

As part of Add Energy’s commitment to the project, the energy consultancy has appointed Dr Damon Bowler to oversee the project.

With over 25 years of asset management experience, Dr Bowler has worked in the oil and gas industry in various roles, and has a diverse range of technical, business and management skills.

This includes over 15 years working for Shell in process safety, operational excellence, reliability, maintenance, operations and projects, within onshore and offshore production assets, gas plants and LNG. He also has10 years of maintenance, reliability and technical / management consultancy experience within numerous industries including electricity & power, oil & gas, refining and petrochemicals.

Dr Bowler is also a committed safety leader with a demonstrable passion for process safety. He is the chair of Step Change in Safety’s hydrocarbon release prevention workgroup, and is currently leading the development and roll-out of new best practise guidelines for the offshore industry.

Peter Adam, Executive Vice President, Add Energy, commented: “As we continue to work closely with BP, we are delighted to have been selected for this project in Egypt. We believe that Add Energy’s wealth of experience in delivering this type of work in amalgamation with our ability to deliver cost effective solutions within our current Global Maintenance Centralization project, has positioned Add Energy as the most suitable contractor for this job.

“We have built a global library of maintenance strategies and procedures based on best practice and reliability data, which, combined with lessons learnt from previous maintenance build contracts, will enhance this project and support the operator in getting best value for money.”

Work is now under way at the site with the development due for completion in March 2018.