Oil & Gas

£1m+ Contract Win for M² Subsea on World’s Longest Pipeline

6M2 Subsea Go ElectraM² Subsea, the global independent provider of ROV services, has secured its first contract award which is valued in excess of one million pounds. The project will see the firm supplying the Go Electra vessel, ROVs and personnel to support survey work on the world’s longest subsea pipeline system.

The company, which has bases in Houston and Aberdeen, has been sub-contracted by Next Geosolutions, an independent geoscience and engineering service provider, to deliver the campaign in the Baltic Sea for the Nord Stream 2 project.

Next Geosolutions was appointed to carry out unexploded ordnance identification (UXO) surveys on the two new pipelines.

The campaign for Nord Stream 2, an extension of the world’s longest pipeline, will be undertaken in an area noted for munitions discoveries following the end of World War II.

To support the 90-day project on the Nord Stream 2, M² Subsea has signed its first charter agreement for the multipurpose support vessel (MSV) the Go Electra, which recently successfully completed its first five-year class inspection.

The scope of work will be project managed from Aberdeen and will see the MSV deployed from Hanko in Finland, and supported by 15 of M² Subsea’s personnel who will carry out the UXO identification work utilizing a Triton XLX 2 Work Class ROV and a Mohican 5 observation/inspection class ROV from the firm’s fleet of 28 assets.

M² Subsea chief executive officer Mike Arnold said: “This contract award from Next Geosolutions is great for the business and a significant scope of work for us to win. It highlights both our personnel and asset capabilities to negotiate what is a very challenging subsea environment.

“Safety is a key factor on every project and in particular where it involves surveying the seabed to identify undiscovered explosive devices for removal. We are very pleased to have chartered the Go Electra which is a highly specialised vessel for subsea inspection, repair and maintenance work and ideal for supporting the conditions the team and ROVs face in the Baltic.

“To be chosen to deliver this geophysical survey also highlights the industry’s increasing appetite for engaging with companies of all sizes if their focus is on delivering the best value via a well thought out strategy which involves the most experienced people as well as the most well-suited vessel and assets for the job in hand.

“We look forward to delivering a safe and successful project for Next Geosolutions.”

Giovanni Ranieri, Next Geosolutions’ CEO, said: “This is an exciting project for Next Geosolutions and we’re delighted to have the opportunity to work with M² Subsea. The workscope allows us to further cement our position in the geoscience market and it reinforces our key objective – to fully appreciate our clients’ requirements and provide them with high quality solutions.”

The Nord Stream twin offshore pipeline system runs from Russia to Germany and measures 1,244km in length.

BP & Kosmos Energy Announces Major Gas Find Offshore Senegal

1bp logo copy 2 1KosmosEnergyBP along with joint venture partner Kosmos Energy announces a major gas discovery offshore Senegal.

The Yakaar-1 exploration well was drilled to a total depth of approximately 4,700 meters in nearly 2,550 meters of water in the Cayar Offshore Profond block by the Atwood Achiever drillship.

Bernard Looney, BP Upsteam chief executive officer, commented “Yakaar-1 follows the earlier exploration success that led to the Tortue discovery and further confirms our belief that offshore Senegal and Mauritania is a world-class hydrocarbon basin. This discovery marks an important further step in building BP’s new business in Mauritania and Senegal. We look forward to results from the additional exploration wells planned for 2017.”

The Yakaar discovery, coupled with the Teranga discovery, creates the foundation for a further LNG hub in the basin.

BP and Kosmos will be drill stem testing the Tortue discovery in mid-2017 and will now drill 3 additional exploration wells over the next 12 months offshore of Senegal and Mauritania.

  • BP in April agreed to deepen its investment in Senegal by acquiring the full 30% minority participating interests that Timis Corporation held in the Saint-Louis Profond and Cayar Profond blocks offshore Senegal. This is subject to government approval and follows BP’s entry into Mauritania and Senegal through an agreement with Kosmos Energy, announced in December 2016.
  • The Saint-Louis Offshore Profond block includes the Senegalese sector of the cross border Tortue (Ahmeyim-Guembuel) field and significant future prospectivity. Tortue is estimated to contain more than 15 trillion cubic feet of discovered gas resources.
  • On completion of the agreements, participating interests in the Senegal blocks will be similar to the aligned partnership in Mauritania, with BP holding participating and effective working interests of close to 60%, Kosmos close to 30% and Société des Pétroles du Sénégal (Petrosen) 10%.
  • Formerly known as Teranga West, Yakaar-1 is in the Cayar Offshore Profond block roughly 95 kilometres northwest of Dakar. In May of 2016, Kosmos announced another significant gas discovery approximately 40 kilometers to the east at the Teranga-1 exploration well.
  • Kosmos will provide additional information about the Yakaar-1 discovery during its first quarter 2017 conference call on Monday, May 8, 2017 at 11:00 a.m. EDT. The call will be available via telephone and webcast.

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.

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.”

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.

MTS Houston Section - Presentation – May 25, 2017- Comparison of Deepwater Hub Facilities

12 1MTSHoustonlogoOn May 25, 2017, Mark Cizek, Project Manager for Williams, will make a presentation to the MTS Houston Section on deepwater hubs in the Gulf of Mexico.

Mark Cizek with Williams will discuss both new and mature hub facilities. He will illustrate his talk by comparing and contrasting the Kodiak tieback to the Devil's Tower truss spar with the Gunflint tieback to the Gulfstar One classic spar. With different commercial arrangements, work scopes and facility ages these two tieback projects offer interesting insights into how a producer might most effectively accomplish a subsea tieback to an existing hub facility. Mark will also discussion commercial aspects, operational arrangements and lessons learned from both projects.

The Gunflint oil field was developed as a long-distance subsea tieback to the Gulfstar One FPS in the deepwater Gulf of Mexico. Gulfstar One, also known as Tubular Bells, is located 135 miles southeast of New Orleans in 4000 feet of water. It was completed in 2014 and offers a flexible, reliable solution for deepwater producers. At over 21,000 tons, it is the first spar-based floating production systems with major components built entirely in the US. Gulfstar's standard design approach allows customers to reduce their cycle time from discovery to first oil. From sanctioning a project to completion, Gulfstar’s “plug and play” options allow delivery within 30 months.

12 2MTS gulfstar fps gs1 lrGulfstar One. Photo credit: Williams

The Devil’s Tower facility is a truss spar located in Mississippi Canyon Block 773, approximately 150 miles southwest of Mobile, completed in 2003. The facility, also owned by Williams, is capable of producing 60,000 barrels of oil per day and 60 million cubic feet of natural gas per day. In 5,610 ft. of water, this spar is the world’s deepest dry-tree platform. The hull is 586 feet in length, 94 feet in diameter and weighed over 11,000 tons at the time of installation whilst the topside weighs over 9,300 tons. The spar currently hosts production from several satellite fields including Devil’s Tower, Triton/Goldfinger and Kodiak, and has the flexibility to accommodate future subsea tiebacks.

About the Speaker

Mark Cizek joined Williams in 2006 and has held a variety of roles, including Project Manager of the Perdido export pipeline project, as well as Project Director for the construction and installation of the Gulfstar One (Tubular Bells) spar. Mark is currently Vice President and General Manager of the Eastern Gulf of Mexico for Williams, overseeing both onshore and offshore operations, as well as the commercial aspects of both operations. Prior to joining Williams Mark worked for Shell Exploration and Production and Technip.

Mark holds a Bachelor of Science in Maritime Systems Engineering from Texas A&M University - Galveston, and a Master of Business Administration from Rice University.

BP Finds Significant Additional Resources in the Gulf of Mexico

2BP AtlantisFieldBP has announced a major breakthrough in seismic imaging that has identified more than 200 million barrels of additional resources at BP’s Atlantis field in the deepwater Gulf of Mexico. As a result of this early success, BP now is deploying this technique to fields elsewhere in the Gulf of Mexico as well as in Azerbaijan, Angola, and Trinidad and Tobago.

The innovation has enabled BP to enhance the clarity of images that it collects during seismic surveys, particularly areas below the earth’s surface that complex salt structures previously obscured or distorted. The sharper seismic images mean that BP can drill new development wells in deepwater reservoirs with higher confidence and accuracy.

“This technological breakthrough has essentially allowed our team to find a new oil field within our existing Atlantis field,” said Bernard Looney, chief executive of BP’s global upstream business. “Given the overwhelming success of this project, we are now deploying this technology across BP’s global operations.”

Proprietary algorithms developed by BP’s Subsurface Technical Center were applied on seismic data run at BP’s Center for High Performance Computing, one of the largest supercomputers in the world dedicated to commercial research. The algorithms allowed data that would normally take a year to be analyzed to be processed in only a few weeks, accelerating BP’s development decisions for the field.

The algorithms enhance a technique known as Full Waveform Inversion (FWI), which matches seismic simulations with existing seismic data to produce high quality subsurface images.

“This innovation again shows that BP remains at the forefront of advanced seismic imaging and digital technologies,” said Ahmed Hashmi, BP’s head of upstream technology. “The new technique has produced the best images of this reservoir that we have ever seen.”

About BP

Over the past 10 years, BP has invested $90 billion in the U.S. – more than any other energy company. BP is a leading producer of oil and gas and produces enough energy annually to light nearly the entire country for a year. Employing about 14,000 people across the country, BP supports more than 130,000 additional jobs through all of its business activities.