The U.S. Department of the Interior’s Assistant Secretary for Land and Minerals Management Janice Schneider, Bureau of Ocean Energy Management Director Abigail Hopper and Bureau of Safety and Environmental Enforcement Director Brian Salerno have announced final regulations to ensure that any future exploratory drilling activities on the U.S. Arctic Outer Continental Shelf (OCS) are conducted under the highest safety and environmental standards and subject to strong and proven operational requirements.

“With the United States as Chair of the Arctic Council, we are committed to demonstrating our leadership in governance and activities in the Arctic Region,” said Assistant Secretary Schneider. “The regulations we are issuing today support the Administration’s thoughtful and balanced approach to any oil and gas exploration in the Arctic region. The rules help ensure that any exploratory drilling operations in this highly challenging environment will be conducted in a safe and environmentally responsible manner, while protecting the marine, coastal, and human environments, and Alaska Natives’ cultural traditions and access to subsistence resources.”

The Noble Discoverer, a drillship operated by Noble Corp. under contract to Royal Dutch Shell, on position in the Chukchi Sea in August 2015. (Photo: Royal Dutch Shell)

The Arctic-specific regulations focus solely on OCS exploratory drilling operations from floating vessels within the U.S. Beaufort and Chukchi Seas. These rules require oil companies to ensure proper internal controls and planning for oil spill prevention, containment and responses – all issues identified by previous Interior reports regarding Shell’s 2012 exploration activities in the Arctic. The regulations codify and further develop current Arctic-specific operational standards to ensure that operators take the necessary steps to plan through all phases of OCS exploration in the Arctic, including mobilization, maritime transport and emergency response, and the conduct of safe drilling operations while in theater.

“The unique Arctic environment raises substantial operational challenges,” said Bureau of Ocean Energy Management (BOEM) Director Abigail Ross Hopper. “These new regulations are carefully tailored to ensure that any future exploration activities will be conducted in a way that respects and protects this incredible ecosystem and the Alaska Native subsistence activities that depend on its preservation.”

Specifically, the final rule requires operators to develop an Integrated Operations Plan addressing all phases of a proposed Arctic OCS exploration program and submit it to BOEM in advance of filing an Exploration Plan. The regulations require companies to have access to – and the ability to promptly deploy – source control and containment equipment, such as capping stacks and containment domes, while drilling below or working below the surface casing.

Operators also must have access to a separate relief rig able to drill a timely relief well under the conditions expected at the site in the event of a loss of well control; have the capability to predict, track, report, and respond to ice conditions and adverse weather events; effectively manage and oversee contractors; and develop and implement an Oil Spill Response Plan designed and executed in a manner that accounts for the unique Arctic OCS operating environment, and is supported with the necessary equipment, training, and personnel for oil spill response on the Arctic OCS.

“Conducting safe and environmentally responsible Arctic exploratory drilling operations presents a variety of technical, logistical and operational challenges,” said Bureau of Safety and Environmental Enforcement Director Brian Salerno. “This rulemaking seeks to ensure that operators prepare for and conduct these operations in a manner that drives down risks and protects both offshore personnel and the pristine Arctic environment.”

These regulations complement the previously announced Final Well Control Rule, released in April. While the Well Control Rule applies across the entirety of the OCS, including the Arctic OCS, many of the provisions of the final Arctic regulations announced today go beyond the scope of the Well Control Rule and address the unique challenges posed by the Arctic operating environment, especially provisions that put in place systems and processes to further reduce risk and provide rigorous safeguards for Alaska’s North Slope coastal communities and the sensitive Arctic environment.

Interior’s Bureau of Ocean Energy Management and the Bureau of Safety and Environmental Enforcement developed the regulations with significant public input from the State of Alaska, North Slope communities, Alaska Native tribes and organizations, industry, and non-governmental organizations. An Environmental Assessment, pursuant to the National Environmental Policy Act, was also prepared in conjunction with this rule and more than 100,000 individual comments were received on the Notice of Proposed Rulemaking.

Although there have been Arctic lease relinquishments, operators continue to hold a number of leases in the Beaufort Sea Planning Area and one in the Chukchi Sea Planning Area that have not expired. Finalizing these regulations will ensure that, should operators decide to act upon their leases or any future leases in these Planning Areas, they will operate with robust safety and environmental protections in place.

The regulations will be available here.

Driven by its purpose of safeguarding life, property and the environment, DNV GL has officially opened a new, state-of-the-art training center at its large-scale testing and research facility at Spadeadam in Cumbria, UK. It was opened by The Rt Hon The Lord Cullen of Whitekirk KT. The international oil & gas advisory and classification society is also inviting participation in a new joint industry project (JIP) to improve cost-efficiencies in explosion protection designs for process areas with testing to take place at the site.

More than £3 million has been invested in the Spadeadam Testing and Research center to enhance its offering to perform rarely available trials in a controlled and secure ‘real-life’ environment. The site features some of the world's most advanced destructive and non-destructive test facilities. The new training and conference facility will enhance experiential learning for the oil and gas, chemical, utilities and security industries.

Elisabeth Torstad, CEO, DNV GL – Oil & Gas, said: “While the industry is understandably preoccupied with generating shorter-term value, we must be vigilant in ensuring safety remains as a top priority. Our challenge is to continue giving the message to clients that cutting costs without understanding the bigger risk picture can end up being ineffective, and ultimately very costly to the business.

“The primary role of the Spadeadam Testing and Research centre is to provide our clients with the knowledge and understanding to ensure risks are reduced and operations are safer. It is the availability of this infrastructure that allows Spadeadam to respond so effectively across a number of sectors.”

The Rt Hon The Lord Cullen of Whitekirk KT, said: “I welcome the creation of this conference centre for the support of training. Hazard awareness is essential for the successful management of safety in the interface between people, plant and equipment, with which they have to work.”

Spadeadam will run full-scale experiments, using available test rigs, for a new DNV GL-led JIP, CostFX, to investigate cost-efficient explosion load descriptions for process areas. The project, which is still open to new participants, is driven by a need to improve and align knowledge between HSE and structural disciplines on explosion load criteria. The aim is to reduce complexity and over design in current models and methodologies for explosion protection, while balancing demand for valid, accountable safety margins. The results will be used to generate standards and guidelines to allow structural engineers to pre-define design explosion loads for standard installations, mitigating the need for costly, specialist analyses. For non-standard installations, a direct link from complex explosion load assessments to structure response and design analyses will be provided. Overall saving in project execution, duration and steel thickness is foreseen, while areas where increased safety is needed will be identified - providing both increased safety and reduced cost.

Work carried out at the site, which is the largest facility of its kind in the UK, consists of confidential, large-scale, major hazard tests, including flammable gas dispersion, fires, explosions, pipeline fracture tests, blast and product testing in a safe and secure environment. Hari Vamadevan, Regional Manager, UK and West Africa, DNV GL – Oil & Gas, said: “The demonstrations today, showcasing an explosion simulation and a pipeline failure, have been a real testament to the capability of the centre at Spadeadam. The ability to show first-hand the reality of these types of scenarios shows just what can happen when things go wrong. Our highly specialised hazards awareness courses demonstrate how this can be prevented and that the experience and variety of work being carried out is unrivalled.

“Although the oil and gas and other industries are facing challenging times, safety is one area which cannot be compromised and it is important that we provide an environment where research and training can be conducted safely, securely and confidentially.”

Noble Energy, Inc. (NYSE: NBL) ("Noble Energy" or "the Company") announced on Tuesday, July 5, 2016, that it signed a definitive agreement to divest a 3 percent working interest in the Tamar field, offshore Israel, to the Harel Group ("Harel"), a leading insurance provider and pension manager in Israel, in partnership with Israel Infrastructure Fund ("IIF"), Israel's largest infrastructure private equity fund.

The transaction value of $369 million is based upon a gross pre-tax Tamar valuation of approximately $12 billion and is subject to purchase price adjustments between January 1, 2016 and the closing date. Closing for the transaction is anticipated in the third quarter of 2016, subject to customary terms and conditions, with after-tax proceeds received expected to be approximately $275 million. Under terms of the agreement, Harel and IIF have the option to elect, before closing, to purchase an additional 1 percent working interest from Noble Energy at the same valuation.

Image courtesy: Noble Energy

Gary W. Willingham, the Company's Executive Vice President of Operations, commented, "This transaction reflects the inherent value of our producing Tamar asset, which reliably fuels more than half of Israel's electricity generation today. It also highlights the potential of our other undeveloped Levant Basin discoveries, which share similar reservoir and well deliverability characteristics and are poised to bring needed energy to a region which is fundamentally short natural gas. We are excited about partnering with Harel and IIF, which bring additional leading Israeli investors into the project. These proceeds further bolster our balance sheet in the near-term and will contribute to our upcoming capital investments in Israel, including our initial investment in the Leviathan project."

Noble Energy and partners are planning to drill and complete an additional development well at the Tamar field in response to the continued increasing demand and outlook for natural gas usage within Israel, as Israel displaces coal for clean-burning natural gas. Drilling is anticipated to commence in the fourth quarter of 2016. The additional producing well will further enhance redundancy while meeting maximum deliverability for extended peak demand periods. There is no material change to the Company's overall 2016 capital program.

Prior to the announced working interest sale, Noble Energy operated the Tamar field with a 36 percent working interest. The Company is carrying out an 11 percent sell-down of its interest in the Tamar field in accordance with Israel's approved Natural Gas Regulatory Framework. Noble Energy anticipates the sale of the remaining 7 to 8 percent working interest over the next 36 months.

Following completion of this sell-down process, Noble Energy will retain a 25 percent working interest and operatorship in the Tamar field, which has recoverable gross mean natural gas resources of 10 trillion cubic feet (Tcf). The Tamar field sold 252 million cubic feet per day, net, of natural gas and generated net pre-tax income of $318 million for Noble Energy in 2015. Noble Energy also operates the Leviathan field, offshore Israel, with a 39.66 percent working interest and the Aphrodite field, offshore Cyprus, with a 35 percent working interest. The Leviathan field has an estimated 22 Tcf of recoverable gross natural gas resources, while Aphrodite holds an estimated 4 Tcf of recoverable gross natural gas resources.

The energy industry’s only Standard for the warranty approval of marine operations has been published today by DNV GL. The Standard is the first to deploy a digital solution that provides users with information most relevant to a specific project.

DNV GL Standard DNVGL-ST-N001 Marine operations and marine warranty, documents design and operational requirements for the temporary phases in the development of offshore assets, including transportation by water. It covers the entire value chain, from fixed steel and concrete platforms and FPSOs to subsea operations, pipe and cable lay, and offshore wind.

The energy industry’s only Standard for the warranty approval of marine operations is available online. The Standards Wizard avoids industry professionals having to sift through a 500-page Standard to look for information relevant to their project.

Kim Rolfsen, Global Service Area Leader - Noble Denton marine services, DNV GL - Oil ＆ Gas, says the Standard draws upon more than five decades of expertise in the review and approval of marine operations. “DNV GL pioneered the concept of marine warranty surveying in the 1960s. Since that time, our legacy businesses have been the industry’s only organizations to continually produce industry standards for marine operations and warranty approvals. They have been followed by most marine contractors and even adopted by our competitors.

“The new Standard combines best practice including legacy DNV’s strengths in technical and analytical detail, and legacy GL Noble Denton’s practical guidance on avoiding technical pitfalls.”

Industry professionals can submit details about the type of asset, operation and structural code, using the MyDNVGL customer portal. The company’s online Standards Wizard will then select the pertinent information from DNVGL-ST-N001 Marine operations and marine warranty.

Mike Hoyle, Head of advanced engineering - Noble Denton marine services, UK, DNV GL - Oil & Gas, explains the benefits “This avoids industry professionals having to sift through a 500-page Standard to look for information relevant to their project. The wizard generates a simple and clear document showing the elements of the Standard needed to get on with the specific job.”

The common Standards, which have been developed with input from companies in the marine sector, also give greater flexibility to industry professionals than before. For example, users can follow either the LRFD or ASD/WSD structural assessment approach when using the Standard to plan and execute marine operations.

“We support customers in their challenges with our dedicated service portfolio which is constantly updated to the changing business environment and technologies. I believe this new digital solution will help our customers to be even more efficient,” says Elisabeth Tørstad, CEO of DNV GL – Oil & Gas.

DNV GL’s new Standard DNVGL-ST-N002 Site specific assessment of mobile offshore units for marine warranty will also be hosted on the company’s new Standards Wizard later this year.

DNV GL’s new marine Standards will be available from the MyDNVGL portal when they are published. Register here.

The Bureau of Safety and Environmental Enforcement (BSEE) has announced that the maximum civil penalty rate for Outer Continental Shelf Lands Act (OCSLA) violations will increase from $40,000 to $42,017 a day for each violation. This legislatively mandated increase is contained in an interim final rule which is effective July 28, 2016.

“BSEE uses civil penalties as an enforcement tool to deter unsafe practices that are not in compliance with regulations,” said BSEE Director Brian Salerno. “We review penalty rates annually to make sure they keep pace with inflation. This ensures they remain a mechanism that emphasizes to industry the importance of safe and environmentally responsible operations.”

BSEE imposes civil penalties when an operator fails to correct a recorded violation or commits a violation that constitutes a threat of serious, irreparable, or immediate harm or damage to life, property, any mineral deposit, or the marine, coastal, or human environment.

The OCSLA directs the Secretary of the Interior to adjust the maximum civil penalty amount to reflect any increases in the Consumer Price Index prepared by the U.S. Department of Labor. In concert, the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 requires Federal agencies to adjust the level of civil monetary penalties through rulemaking. BSEE most recently adjusted the penalty maximum amount in 2011. The rate was reviewed in 2014 and 2015, and it was determined that no adjustment was warranted.

The interim final rule notice is available today for review in the Federal Register.

BSEE will issue a notice to offshore oil and gas operators this week informing them of the changes and provide a list of infractions with the corresponding fine amount. That notice will be available here.

The global oil and gas industry has sent out a strong message about its commitment to maintaining the safety of its workforce in the downturn with international training standards body OPITO on track to deliver a record number of approvals.

More than double the number originally projected, the industry organization is forecasting a record-breaking 108 new additions to the courses delivered by their network of approved training providers by the end of the year.

Recognized as the best in the world, OPITO standards are used by major international and national oil and gas companies in over 45 countries. Since the start of the downturn, OPITO has seen an increase in centers applying to deliver basic safety training to the workforce as well as specialist training such as fire-fighting and lifting operations; and dedicated training for offshore installation managers.

From October 2015 - March 2016 alone OPITO also approved 14 new survival training centers in six countries, with particular interest in the US and West Africa, some of which is new territory for the organization.

“The hazards and risks surrounding our industry remain the same regardless of the oil price,” said OPITO global chief executive David Doig. “Looking back to the number of incidents and accidents recorded around the previous lows of 1986 and 1999, the figures show a clear correlation between poor safety performance and a global downturn.

“Throughout the current downturn we have consistently urged companies to implement robust strategies that look at the long term needs of the workforce and avoid seeking to gain a measure of fiscal balance by cutting their investment in safety and skills development.

“While the numbers going through training have fallen in line with the jobs that have been lost in the global workforce what we are not seeing, by quite some way, is any reduction in the industry’s commitment to invest in the safety of its workforce. Instead what we are seeing is more demand than ever for people to be trained to globally recognized standards.”

The industry body sets training standards to ensure the safety of those working in oil and gas. Delivered by approved training providers across the globe, personnel receive quality assured training so they are competent to do carry out their roles safely.

“This is, at a fundamental level, what has changed between this and previous downturns. The industry now has a standards-based approach to training and competency which simply didn’t exist before,” added Mr. Doig.

“For many months we have seen the industry adjusting to the low oil price environment and there will likely continue to be bad news for many in the months ahead with regards to workforce cuts. But what we aren’t seeing is a race to the bottom with standards going out the window in favor of cost-based training.

“Instead, the message we are hearing loud and clear is that these standards are critical and the industry wants them.”

“As we are starting the riser platform construction we are taking another important step in delivering the Johan Sverdrup project on schedule,” says project director for Johan Sverdrup Kjetel Digre.

The preparations for the riser platform construction started already in January 2015, when Aker Solutions was awarded the contract for engineering and procurement management for the processing platform and the riser platform for Johan Sverdrup.

The platform construction work commenced in the beginning of June 2016.

Project director for Johan Sverdrup Kjetel Digre (from right), project manager for the riser platform and the processing platform Ståle Nordal and head of Samsung Heavy Industries’ offshore division Younsang Won led the formal celebration of the construction start in South Korea 30 June. Photo courtesy: Statoil

“As of today Samsung Heavy Industries will gradually be given more responsibility for ensuring that the riser platform is built without any HSE incidents and that the platform is delivered according to plan and cost. We have an ambitious project plan for Johan Sverdrup, and we depend on high-quality and precision work from Samsung and more than 100 equipment package suppliers when they are delivering the riser platform and the processing platform topsides,” says Kjetel Digre.

The riser platform will play a key role on the field centre, as it will be the receiver of land-based power that will maintain operation on the Johan Sverdrup field for more than 50 years. From this platform the oil and gas from the huge Johan Sverdrup reservoir will be exported to land, to Kårstø (gas) and to Mongstad (oil).

The riser platform also represents the future of the Johan Sverdrup field.

“Our Johan Sverdrup development is based on 40 years of experience from the Norwegian continental shelf. We know that by working hard every day we are able to improve the oil and gas recovery and extend the life of our fields.

During the 50 years of production from Johan Sverdrup, innovation and new technology will open up new possibilities. That is why we, for the first time in an offshore project, have more than 2500 square meters of free deck space, which will be used for equipment and technology that may improve recovery and extend the life of Johan Sverdrup,” says Digre.

The free space will be used for realizing measures for improved recovery and phasing in future phases of the Johan Sverdrup development, and any other future discoveries on the Utsira High.

The riser platform is the largest of the four platforms constituting the Johan Sverdrup field centre. The platform will be 124 meters long, 28 meters wide, 42 meters tall, and have a total weight of 23,000 tons.

Construction of the processing platform (P1) for Johan Sverdrup will start during July 2016.

Delmar Systems, Inc. has completed mooring operations and successfully installed Delmar OMNI-Max® anchors with InterOcean’s proprietary Rig Anchor Releases (RARs) on each of the eight preset mooring lines on the semi-submersible MODU ENSCO 8503.

The OMNI-Max and RAR preset system was used to save critical path rig time during disconnect transit operations from offshore drilling sites at several locations in the US Gulf of Mexico. Using this system, along with Delmar’s efficient offshore execution, resulted in significant time savings during each disconnection operation. In addition, the OMNI-Max’s ease and speed of installation and smaller size saved valuable mobilization and preset installation time.

Using the Rig Anchor Release (RAR) gives the ENSCO 8500 class rigs the flexibility to compete for a number of operator selected projects by allowing the rigs to be used in both straight DP mode or moored mode. The rig is also able to quickly disconnect and move off location for a storm event, providing low-risk operations during hurricane/cyclone season.

“We designed a preset mooring system coupling the RARs with our OMNI-Max anchors, which enables the rig to efficiently disconnect and connect at the next location. DP rigs with mooring capability give the operators increased flexibility in selecting rigs for a variety of projects, whether deep or shallow water, while optimizing station keeping operations. This time savings and flexibility has proved to be a significant financial benefit to the operators,” said John Shelton, Delmar’s Engineering Manager.

InterOcean Systems LLC, an affiliate of Delmar Systems, Inc., designs and manufactures its proprietary RARs and other specialized oceanographic, environmental, and remote oil spill detection systems and equipment.

Headquartered in Broussard, LA, Delmar Systems has provided mooring and subsea installation services for over 48 years to every oil and gas region around the globe, with offices strategically located to serve the offshore industry in the world’s most challenging offshore environments.

The commissioning ceremony of a production unit for BIOROS, a new oil biodegradation agent, took place on July 7th, at the facility of the Safe Technologies company in St. Petersburg. The event was attended by Oleg Aksyutin, Member of the Management Committee and Department Head at Gazprom.

At chemical analysis laboratory of Gazprom VNIIGAZ. Photo courtesy: Gazprom

The new substance was developed by Gazprom VNIIGAZ, the Company's core research center. BIOROS is an innovative product for oil spill cleanup. It is more effective than similar products made in Russia and abroad, as it provides for, among other things, quicker oil spill removal at a greater range of temperatures, from 5 to 45 degrees Celsius.

It was noted at the ceremony that the production of the BIOROS biodegradation agent was a result of Gazprom's fruitful cooperation with domestic companies aimed at manufacturing competitive import substituting products.

Background

A biodegradation agent is a substance that removes oil spills using special microorganisms, which feed on oil products (oil, fuel oil, diesel fuel, lubricants, etc.), air, and water, thereby cleaning up soils, subsoils, and water sources.

BIOROS and its application technology are protected by Russian patents. The product also received the Gazprom Science and Technology Prize. The biodegradation agent will be produced by Safe Technologies under a license agreement.

Safe Technologies Industrial Group is a Russian enterprise that comprises a number of companies focused on the design and construction of environmental, industrial and chemical facilities, as well as on the development of waste management solutions.

ExxonMobil Corporation (NYSE:XOM) confirms that drilling results from the Liza-2 well, the second exploration well in the Stabroek block offshore Guyana, confirm a world-class discovery with a recoverable resource of between 800 million and 1.4 billion oil-equivalent barrels.

“We are excited by the results of a production test of the Liza-2 well, which confirms the presence of high-quality oil from the same high-porosity sandstone reservoirs that we saw in the Liza-1 well completed in 2015,” said Steve Greenlee, president of Exxon Mobil Exploration Company. “We, along with our co-venturers, look forward to continuing a strong partnership with the government of Guyana to further evaluate the commercial potential for this exciting prospect.”

The Liza wells are located in the Stabroek block approximately 120 miles (193 kilometers) offshore Guyana. Data from the successful Liza-2 well test is being assessed.

The Liza-2 well was drilled by ExxonMobil affiliate Esso Exploration and Production Guyana Ltd., approximately 2 miles (3.3 km) from the Liza-1 well. The Liza-2 well encountered more than 190 feet (58 meters) of oil-bearing sandstone reservoirs in Upper Cretaceous formations. The well was drilled to 17,963 feet (5,475 meters) in 5,551 feet (1,692 meters) of water.

“This exploration success demonstrates the strength of our long-term investment approach, as well as our technology leadership in ultra, deepwater environments,” said Greenlee.

The Stabroek block is 6.6 million acres (26,800 square kilometers). Esso Exploration and Production Guyana Limited is operator and holds 45 percent interest in the Stabroek block. Hess Guyana Exploration Ltd. holds 30 percent interest and CNOOC Nexen Petroleum Guyana Limited holds 25 percent interest.

The Industry Technology Facilitator (ITF) has launched a call for proposals to improve or offer alternative approaches to cement plugs which are currently deployed in plugging and abandonment (P&A) operations in wells.

The invitation is open to qualified organizations, with successful applicants having the opportunity to lead their own joint industry project (JIP) with support, funding and participation provided by influential members of ITF.

Throughout the JIP, the developer will receive technical guidance from ITF’s membership of global oil and gas operators and service companies to develop the technology further to best meet industry needs. This will profile the capabilities of the technology to a wider network of potential clients.

At present, cement plugs are the most conventional barrier material to isolate and protect all potential producing or water bearing zones from leaks and to allow the safe removal of subsea equipment. However, they come with a number of technically complex and costly issues, particularly around the hydration and placement process.

ITF is seeking an alternative or revised permanent well barrier that is long lasting, strong, able to be pumped, of extremely low permeability and able to perform at different temperatures and pressure ranges whilst maintaining its strength. The alternative material must adhere to best practice guidelines. The deadline for responses is Friday 22 July, 2016.

Dr Patrick O’Brien, CEO of ITF said: “There is now a clear impetus from energy leaders to address decommissioning challenges from the outset before real activity begins. We are looking for solutions which will safely improve operability, increase reliability and cut the cost of conventional technologies.

“Collaboration in technology development and delivery provides risk and cost reduction for the industry. We welcome submissions from all sectors, such as aerospace, medical and automotive, as often the answer can be transferred from outwith our own field of expertise.”

This is the third in a series of six calls to improve and develop cost-effective technologies to address the most pertinent problems when decommissioning a well, as identified by ITF members. Potential solutions for through tubing logging and removal of casing and tubing are currently being reviewed.

Lloyd’s Register (LR), a leading provider of integrity, compliance and specialist risk consulting services, announced they have extended rig integrity support for the Deepwater Invictus drilling rig. The company’s expertise in blow-out preventors (BOPs) and rig integrity will be used to provide confidence in how risk is managed for deepwater drilling and well exploration.

Kevin Comeau, Dynamic Positioning / Power Management & Marine Safety Systems Manager at LR says: “We have had a team supporting the Gulf Of Mexico (GOM) drilling program on board Deepwater Invictus and it is this same team that has been requested for BHP Billiton’s drilling program in Trinidad. Although the core part of our work is on BOP operation, rig integrity and compliance, we will also provide expertise in performing inspections, risk assessments and training for personnel working on the rig.”

The BOP is often the final line of defense for protecting life and the environment and so there is high demand for a transparent and well-structured risk assessment approach that helps rig owners and operators to monitor the BOP’s safety performance.

A subsea BOP is a special system which is highly regulated and among one of the few pieces of equipment that combines multiple functions such as drilling and operations control, a tool for preventing risk and supporting emergency response procedures. BOPs were developed to cope with extreme erratic pressures and uncontrolled flows emanating from well reservoirs during drilling. These factors mean that simple component failures can cause drilling operators to be exposed to severe risk.

Before the market downturn, LR was reviewing more than 350 drilling rigs each year. The company has unmatched expertise in the provision of maintenance and asset management services, specifically designed to meet the needs of the drilling industry.

“As the industry looks to implement new, be

st-in-class offshore drilling operations, we believe we have a great deal to contribute to the conversation,” highlighted Comeau. “Developments in BOP underline that new technology is not a barrier. It is seen as the catalyst for better performing oil and gas sector and a competitive necessity among the key operators.

“Our work with BHP Billiton is a great example of how synergies between companies can lead to innovative risk and reliability work that help make the industry more reliable, better performing and safer.”

Deepwater Invictus was delivered in 2014 and is IMO registered vessel 9620592 with a gross tonnage of 68034. It has a rated drill depth of 40,000 ft. The continuation of support for the Trinidad drilling campaign with BHP started in May 2016.

Oceaneering International, Inc. (“Oceaneering” or the “Company”) (NYSE:OII) announced that it has entered into a Master Service Agreement with Heerema Marine Contractors Nederland SE (“HMC”) through December 2020. During this time Oceaneering will provide up to ten Remotely Operated Vehicle (“ROV”) systems with associated subsea tooling, engineering and technicians to support HMC’s global operations, including fixed and floating platform installations, platform decommissioning, subsea infrastructure and pipeline installations.

Photo courtesy: Oceaneering

The ROV systems will be installed onboard HMC’s deepwater construction vessels Aegir, Thialf and Balder; the semi-submersible crane vessels Hermod and Sleipnir (a newbuild vessel); and other additional support vessels.

M. Kevin McEvoy, Chief Executive Officer of Oceaneering, said, “We are very pleased to have been selected by HMC against a backdrop of what is a very challenging market environment. This is a position we have achieved through our customer focus and commitment to growing market share while safely providing state-of-the-art equipment, highly trained personnel, and complementary engineering services and products.”

Qatar Petroleum (QP) announced on June 27, that it has concluded the competitive process which it initiated in 2015, for the further development and operation of its Al-Shaheen offshore oil field, starting July 2017.

As part of the announcement, QP said that the company that presented the best offer to meet QP requirements was Total.

The announcement was marked by the signature by QP and Total of the relevant agreements for the further development and operation of Al-Shaheen oil field, which was held under the patronage and in the presence of His Excellency Sheikh Abdullah Bin Nasser Al Thani, the Prime Minister and Minister of Interior of the State of Qatar.

Photo courtesy: Qatar Petroleum

The signed agreements included a Joint Venture Agreement (JVA) to establish a new Qatari company to be known as “North Oil Company” that will develop and operate Al-Shaheen oil field. The new company will be 70% owned by QP and 30% by Total.

A Development and Fiscal Agreement (DFA) was also signed between QP and the two parties to the joint venture, in which QP licensed the rights for the development and operation of the field, and for the production, sale and export of crude oil from Al-Shaheen oil field for a period of 25 years starting in July 2017.

Mr. Saad Sherida Al-Kaabi, President & CEO of Qatar Petroleum said “QP’s objective for the competitive process was to choose a partner that has world class technical capabilities that enable it to continue the development and operation of Al-Shaheen Field in partnership with QP, while at the same time ensuring the highest possible financial return to the State of Qatar.”

Speaking at a press conference held on this occasion, Mr. Al-Kaabi added: “The strong and serious technical and financial offers we have received during an industry downturn is a true testament to Qatar’s attractiveness reflected by its natural resources, safe investment climate, and for being such a great place to live in. This is another proof of Qatar’s ability to ensure the future successes of its development strategy, including that of its strategic natural resources.”

The President & CEO of Qatar Petroleum told reporters that the success of the competitive process is owed to the vision, guidance and strong support of His Highness Sheikh Tamim bin Hamad Al Thani, the Emir of the State of Qatar. He said “this process has -from day one- enjoyed the gracious guidance of His Highness to seek innovative ways to develop our country’s energy resources through successful international partnerships, to enhance the transfer of technology and knowledge, develop our young workforce in Qatar.”

Mr. Al-Kaabi thanked Maersk Oil Qatar for their “significant efforts and valuable contribution in managing Al-Shaheen field during the past quarter of a century and for the offer they have presented.”

He also thanked all the major oil companies that participated in the competitive process and encouraged them to participate in future opportunities in Qatar.

Al-Shaheen oil field is among the world’s largest oil fields. It has been producing oil for 22 years, yet holds the potential to produce a few-fold of the oil it has produced so far. It currently produces around 40% of Qatar’s crude oil, at around 300,000 barrels per day.

Global integrated drilling waste management and environmental services firm, TWMA, has recently secured a £1.5million contract with Apache on the WilPhoenix platform in the North Sea Beryl field.

As part of TWMA’s fully integrated waste management solution, the one year (with one year option) contract will utilise the company’s award-winning TCC RotoMill® for offshore processing and EfficientC® for cuttings transfer and distribution.

TWMA’s TCC RotoMill® on the WilPhoenix platform

Chief operating officer, Neil Potter, said: “We have built a strong relationship with Apache over the last five years, and are delighted to have been selected to support on the WilPhoenix project. We also supported a previous drilling campaign on this platform last year and have ongoing contracts with Apache including the provision of EfficientC® bulk transfer services on the Beryl Bravo and Alpha platforms and onshore processing services for those and other Apache installation platforms.”

The provision of bulk transportation involves directly pumping drill cuttings from storage tanks onboard the rig to a supply vessel, then transporting the drilling wastes to an onshore processing facility.

Neil added: “This continuation of our services across Apache’s North Sea projects is major recognition of our ability to offer the best possible integrated solutions for effectively managing drilling waste both on and offshore, and testament to the strong relationships we consistently build with our customers.”

Penspen and Dar Al Handasah, operating as a joint venture, have been awarded a new project management contract by Kuwait Gulf Oil Company to manage the engineering, procurement and construction of a new gas and condensate pipeline. The pipeline runs both offshore and onshore from Khafji in Saudi Arabia to the final destination of Mina Al Ahmadi in Kuwait.

The two companies, both members of the Dar Group, have been providing FEED and project management services for this new pipeline since March 2010. The project is now at an advanced stage and will be completed under this new contract, which is set to run for 18 months.

Penspen’s EVP for Project Performance Chris Williams said:

“We have had a really good relationship with KGOC since we started on the FEED and we look forward to being involved right through to commissioning. We see this as a really interesting project involving facilities, multi phase flow and both onshore and offshore pipelines. The combined strengths of Dar’s track record in the region and Penspen’s broad technical expertise have made our partnership a real success”.

About Penspen

Penspen is an energy services company that is committed to shaping the delivery of tomorrow’s energy by helping its clients engineer and operate their assets across the entire project lifecycle, maximising returns and delivering technical excellence.

We have over 60 years of experience helping our clients develop new energy assets by providing customised engineering and project management services, and by assisting them with the rehabilitation of existing energy assets to maximise productivity and efficiency.

Penspen was founded in the UK in 1954 as Spencer & Partners and has grown to become a global organisation with major offices in London, Aberdeen, Houston, Villahermosa, Abu Dhabi, Bangkok and Singapore.

About Kuwait Gulf Oil Company

The Kuwait Gulf Oil Company (K.S.C) was founded on February 10, 2002 to represent the State of Kuwait in the Divided Zone. It began its primary role in that regard on January 5, 2003 when it took over the management of Kuwait DZ off shore area from the Arabian Oil Company Ltd. on the expiry of that company’s concession agreement.

The Divided Zone was established between the State of Kuwait and the Kingdom of Saudi Arabia as a buffer zone along the International Boundary between the two countries in an effort to improve cooperation for development projects in the border areas. The explored hydrocarbon resources are equally shared between the State of Kuwait and the Kingdom of Saudi Arabia, and the exploitation is managed through a Joint

Operations Committee established between the two countries.

In 2006, KGOC took over the responsibility to manage Kuwait share of the resources in the on-land Divided Zone that had been carried on by the Kuwait Oil Company. Since then, KGOC is responsible of managing all of the shared resources in the DZ (onshore & offshore).