With recoverable oil reserve estimates of approximately 750 and 600 million barrels (mmbbl) in Uganda and Kenya respectively, and with government share of the reserves expected to be about 30–50%, the potential impact on economic development in these countries could be great. However, new infrastructure, including an export pipeline, is required to enable commercialization of these discoveries, says an analyst with research and consulting firm GlobalData.

Overall oil production in Uganda is forecast to peak at about 200,000 barrels per day (bd) by 2023, while Kenya’s production is estimated to reach approximately 85,000 bd by 2027, provided the export pipeline is in place.

According to Jonathan Markham, GlobalData's Upstream Oil & Gas Analyst, while a range of possible pipeline routes to ports in Lamu, Mombasa or Tanga have been proposed, upstream development in the region has stalled due to a lack of progress in developing an export route for these inland discoveries.

Markham explains: “Operators have been lobbying for an export pipeline since the discoveries were made to enable development of the area. Tullow Oil and Africa Oil have cautiously welcomed progress made in agreeing a pipeline route from Uganda through northern Kenya to Lamu, but Total prefers routes further south, citing security concerns in northern Kenya.”

The analyst adds that the development of an export pipeline would also be a driver for upstream exploration in the region. Some blocks have already been licensed by governments in central and eastern Africa, but the remote locations have dampened interest from major oil companies.

Markham continues: “Current license holders view new basin exploration as an area with high growth potential, with South Sudan, Ethiopia, Tanzania, Rwanda and the Democratic Republic of the Congo all possible beneficiaries of new pipeline routes.

“Discoveries in Kenya and Uganda have favorable subsurface characteristics and relatively low exploration and appraisal costs compared with the deepwater dominated exploration in West Africa. Estimated full-cycle capital expenditure per barrel for these upstream developments is about US$8–12, which is increasingly enticing, as the oil and gas industry cuts back on costs. However, without an economical export route, the inland discoveries will remain commercially unviable at current oil prices.”

Forum Energy Technologies, Inc. (NYSE: FET) has announced that its AMC Engineering product line has been awarded multi-million dollars worth of significant new orders within just one month.

The multiple orders are for the manufacture and supply of its industry-leading fully rotational torque (RT) bucking unit with the first delivery scheduled for Q1, 2016. They have been purchased by three of the largest multi-national oil service companies and will enable improved and increased tool make up capabilities at locations in the Middle East, South America and Caspian regions.

The RT bucking machine (RT) is a self-contained, free-standing hydraulically powered unit designed for fast and accurate make up and break out of premium and regular threaded connections for tubular equipment up to a maximum torque of 200,000 foot-pounds (ft lbs).

Plant manager at Forum AMC Engineering, Darren Bragg, said: “To win a series of orders from a number of leading international companies is a major endorsement of our products and our Aberdeen-based manufacturing and export capabilities, particularly in the current challenging market conditions.

Forum AMC wins multi-million dollars worth of new orders for its industry-leading rotational torque unit.

“It also demonstrates the strong relationships we have built with our customers as well as introducing a new customer to our equipment. To continue to win these large capital investments is great recognition for our team effort and reinforces a strong and encouraging start for 2016.

“We understand more than ever that budget is hard to come by and that, as part of this, understanding our customers’ requirements and delivering solutions on time, on budget is paramount. Choosing Forum’s equipment at a time when every budget item is being especially scrutinized by companies is a testament to the confidence in the reliability of our equipment.”

Forum also announced that from January, 2016, the manufacture of the company’s PQuip Mud Bucket product will be transferred to the Forum AMC facility. This joins the Tautwire product line that was moved to the Aberdeen location earlier in 2015. This further reinforces the continued recognition of the skills and experience that the team at Forum’s AMC facility provides.

Forum Energy Technologies is a global oilfield products company, serving the subsea, drilling, completion, production and infrastructure sectors of the oil and natural gas industry. The company’s products include highly engineered capital equipment as well as products that are consumed in the drilling, well construction, production and transportation of oil and natural gas. Forum is headquartered in Houston, TX with manufacturing and distribution facilities strategically located around the globe.

Forum AMC is an internationally recognized manufacturer of torque equipment (bucking machines). Its market-leading equipment is in operation around the world with most of the major oil and gas service companies in Africa, North and South America, Canada, Europe, Far East, Middle East and Russia.

Forum AMC has been delivering torque solutions to the market for over 25 years with every unit being designed and manufactured to meet and exceed our customers’ requirements. The business’s technical engineers are available anywhere in the world for installation, servicing, training and calibration while Forum AMC also carries out and supplies service, calibration, repairs and modification on non-AMC equipment.

Deepwater mooring specialist, First Subsea Ltd, has completed the installation of subsea mooring connectors for Anadarko Petroleum Corp's Heidelberg truss spar platform moored in 5,310ft (1,620 m) of water in field development in the Gulf of Mexico.

The 23,000-ton spar has been moored by nine Series III Ballgrab ball and taper mooring connectors attached to polyester mooring lines. The connector's male mandrels are manufactured in compliance with American Bureau of Shipping (ABS) 2009 Approval for specialist subsea mooring connectors.

Ball and taper subsea mooring connectors (SMCs) offer a two-part mooring. A connector receptacle is preinstalled, attached by ground chain to a mooring pile. When the spar arrives on-station the ball and taper mooring connector is simply attached to the mooring line and lowered into the receptacle to complete the mooring line connection.

“Spar mooring is something of a specialty for Ballgrad SMCs,” says John Shaw, managing director, First Subsea. “The connectors offer a quick mooring line installation with significant time savings for the overall mooring installation.”

The Heidelberg spar will have a capacity of more than 80,000 barrels of oil and 2.3 million cubic meters of natural gas per day.

First Subsea is the first manufacturer of offshore mooring connectors to achieve ABS type approval for the design and manufacture of large-scale forgings over 500mm in diameter.

Statoil has, on behalf of the Johan Sverdrup partners, awarded contracts for the linepipe , coating and pipe installation of the Johan Sverdrup export pipelines.

The total contract value is estimated at slightly less than NOK 2.5 billion, the three contracts cover both the oil and the gas export pipelines for Johan Sverdrup.

The linepipe fabrication contract for the export pipelines was awarded to Mitsui & Co. Norway A.S. Mitsui will deliver 220 000 tons of steel for the oil and gas pipelines, totaling 430 kilometers. Linepipe production will start at Nippon Steel & Sumitomo Metal (NSSMC) steelworks in Japan early in 2016.

Wasco Coatings Malaysia Sdn Bhd was awarded the contract for external anti-corrosion treatment and concrete weight coating for the oil and gas pipelines, as well as internal flow coating for the gas pipeline. The work will be performed at Wasco’s factory in Malaysia in 2017.

Saipem Ltd has been awarded the pipe-laying contract for the Johan Sverdrup oil and gas export pipelines. The pipe-laying operation is scheduled to start in the spring of 2018, using the laying vessel CastorOne.

“We have selected a solid team of principal suppliers for the Johan Sverdrup export pipelines, and are thus well positioned to deliver first oil from Johan Sverdrup from late 2019,” says Kjetel Digre, senior vice president for the Johan Sverdrup project.

Stabilized oil will be exported to the Mongstad terminal through a new oil pipeline connected to existing storage caverns. The oil export solution consists of a 274-kilometre, 36-inch pipeline to the Mongstad terminal, including required modifications at the terminal.

Gas will be exported to Kårstø gas terminal through a new gas pipeline. The gas export solution includes a 156-kilometre, 18-inch pipeline tied in to the Statpipe rich gas pipeline, including a hot-tap hook-up to this pipeline. No modifications are required at Kårstø for the reception of the Johan Sverdrup gas.

The oil and gas export development will meet the transportation needs for all phases of the Johan Sverdrup development.

Contracts worth more than NOK 50 billion have been awarded so far in the Johan Sverdrup project, about 75 percent of which have been landed by suppliers with Norwegian invoice addresses.

Hyperdynamics Corporation (OTCQX:HDYN) announces an impasse in plans to resume petroleum operations and move forward with drilling an exploratory well under the Joint Operating Agreement governing the oil and gas exploration rights offshore Guinea ("JOA"). The impasse reflects a refusal by the participants in the Guinea project, Tullow Guinea Ltd., ("Tullow") a wholly owned subsidiary of Tullow Oil, PLC and Dana Petroleum (E&P) Limited, ("Dana") a wholly owned subsidiary of the Korean National Oil Company, to meet their obligations under the JOA and the Production Sharing Contract with the Government of Guinea ("PSC").

In August 2015, Tullow as operator under the JOA presented to Dana and Hyperdynamics, through its subsidiary, SCS Corporation Ltd. ("SCS"), a work program and budget to complete drilling of a well before the September 2016 deadline established by the PSC. Tullow and SCS voted in favor of the work program and budget, and it was deemed passed by this vote. On September 23, 2015, Tullow submitted this work program and budget to the Guinea Minister of Mines and Geology. Pursuant to Article 9.4 of the PSC, the annual work program and budget is deemed approved 30 days after submission, and that period has passed. Tullow also submitted a contracting strategy to the Guinea Government and initiated well preparation procedures that included visits to Guinea and meetings with Guinea government officials, all of which indicated that Tullow was on course to resume petroleum operations.

However, in an Operating Committee Meeting on November 18, 2015, in contrast to its prior actions, Tullow stated that it would not restart petroleum operations unless Dana agreed to fund its portion of well costs, which Dana declined to do.

Following Tullow's now withdrawn declaration of force majeure, both Dana and Tullow had raised concerns in 2014 that the Foreign Corrupt Practices Act investigations into Hyperdynamics could cause the Guinea government to question titles provided by the PSC. Notwithstanding the conclusion of those investigations, Dana maintained its position that it would not agree to fund well costs absent further assurances from the Guinea government that the Guinea government would not challenge ownership rights under the PSC. Since that November 18, 2015 meeting, Hyperdynamics has engaged in discussions with Tullow and Dana relating to these positions.

At a Petroleum Operations Management Committee in Guinea on December 16, 2015, Tullow and Hyperdynamics met with representatives of the Guinea Minister of Mines and Geology. Dana declined to attend the meeting. At the conclusion of those meetings on December 17th, the Guinea government agreed to the exact title assurances proposed by Dana, and agreed to by Tullow in previous communications, as an amendment to the PSC. At the meeting, Hyperdynamics executed the amendment and Tullow and the Ministry of Mines and Geology of Guinea initialed the document. Tullow committed to moving the amendment through the necessary approval processes at Tullow.

As of this date, neither Tullow nor Dana has signed the PSC amendment, and both have stated that they will not sign unless the other party signs first. Both have repeatedly refused to sign first, declined Hyperdynamics' suggestion that they sign simultaneously, and have refused to agree to restart petroleum operations.

Hyperdynamics believes that neither Tullow nor Dana has the ability under the JOA to block resumption of petroleum operations regardless of whether a PSC amendment was negotiated. In any event, the fact that the Guinea government agreed to the PSC amendment has removed any title concerns Tullow and Dana had about moving forward with the resumption of petroleum operations.

Ray Leonard, President and CEO, commented, "We are extremely disappointed in the actions of both Tullow and Dana. Dana stated that the only impediment to moving forward with petroleum operations was additional title assurances, but will not sign a document providing the exact assurances it sought. And, even though Tullow is the operator, it is refusing to take the required steps to move this project forward, including promptly signing a document it has already initialed. In sum, neither company has honored the commitments made to us and to the Government of Guinea to proceed with drilling. We will continue with our efforts to get this well drilled, and we are considering all of our options to accomplish this key objective."

Pursuant to the agreement between Tullow and a subsidiary of Hyperdynamics in 2013 in connection with the sale to Tullow of a portion of Hyperdynamics' interest in the Concession, Tullow agreed to drill an exploratory well and to pay all of the costs of Hyperdynamics' participating share of expenditures associated with joint operations up to a gross exploration cap of $100 million. The participating interests are owned 40% by Tullow, 37% by Hyperdynamics and 23% by Dana.

Marred by corruption and market turmoil, Petrobras, the operator of key pre-salt projects for Brazil’s oil production over the next five years, is one of many Brazilian oil and gas companies facing a difficult financial future in the short term, according to an analyst with research and consulting firm GlobalData.

Adrian Lara, GlobalData’s Senior Upstream Analyst covering the Americas, says that production from pre-salt fields will contribute an estimated 65% of Brazil’s oil production by 2020, while there are 11.6 billion barrels of recoverable reserves from planned pre-salt projects.

This production depends on timely deployment of Floating Production Storage and Offloadings (FPSOs), pace and number of wells drilled, and productivity of the pre-salt wells. However, the fact that Petrobras is more than $100 billion in debt makes growth prospects very slim.

Lara elaborates: “Petrobras has seen its capital investment and production forecast negatively impacted by the carwash corruption scandal, one of the largest cases of fraud in the history of oil and gas. Consequently, it has been forced to delay its development plans and has proposed budget cuts for the next two years.”

The analyst adds that Petrobras’ recent revisions to its production plans, forecasting 2.8 million barrels per day (mmbd) by 2020, 1.4 mmbd less than 2014, will be adjusted further. This is due to more recent Petrobras CEO statements indicating less capital expenditure and a larger divestment strategy. One key change in the investment plan for pre-salt production has been a significant reduction in the number of FPSOs brought online by 2019.

Lara continues: “Developing pre-salt assets remains vital in providing much-needed cash flow for Petrobras. However, most of these require significant additional investment, which will be hard to find considering the company’s current position.”

Although Petrobras rejected the idea of partnering with other operators in developing pre-salt resources, recent debates and announcements in the media, congress and statements from the ministry of finance and Petrobras’ CEO indicate that a discussion about changing these conditions might be feasible.

Lara concludes: “Diminishing the local industry role and Petrobras’ leadership in the development of the pre-salt resources in favor of foreign oil and gas companies would certainly face opposition from workers' unions and require substantial negotiation between key political parties. However, this might be the necessary trade-off to create the potential production growth from pre-salt areas.”

Apply Sørco has secured new frame agreement for Maintenance, Replacements and Modifications (M&M) from Statoil worth approximately NOK 4 billion over the next six years. The contracts secure activity and visibility for the company and its employees. The contracts include a main supplier agreement, replacing the current M&M agreement, and a competition-agreement related to modification projects Statoil chooses to offer for competitive bidding outside the main M&M contract.

The main supplier agreement lasts for six years, with a four-year option for extension. It covers the following licences and installations: 

The frame agreement has a duration of ten years and covers all of Statoil’s installations onshore and offshore Norway.

“The awards are a declaration of trust from Statoil to Apply Sørco and come as a consequence of the deliveries we have made under the current agreement,” says chief executive officer Per Hatlem in Apply Sørco.

Apply Sørco supports Statoil’s continued focus on cost efficiencies and optimization by including productivity incentives in the contract. Apply Sørco has improved efficiency in partnership with Statoil since the award of the current agreement in 2010. The company remains committed to improving productivity and execution, and will therefore continue the ongoing efficiency program in order to strengthen future competitiveness.

The new contracts and extension of the cooperation with Statoil represent a positive shift for Apply Sørco.

“The recent years have been challenging and it is a great motivation for the whole organisation to be trusted with today’s contract awards. Over time, one may see potential openings for hiring of new employees, both onshore and offshore, to meet requirements in the project portfolio”, says Per Hatlem.

Apply Sørco represents Apply’s MMO- and EPCI operations in the oil- and gas. Deliveries target all project phases from concept development and studies to completion and commissioning as well as operations, maintenance and modifications of oil and gas production facilities. The company has more than 30 years of experience on the Norwegian Shelf. Headquarters are in Stavanger, with offices in Bergen Krakow and Hammerfest.

McDermott International, Inc., (NYSE:MDR) announced it has been awarded a sizeable transport and installation contract by an upstream oil and gas operator for a project offshore Trinidad, West Indies.

The contract award includes the transport and installation of a 1,000-ton deck and 1,600-ton jacket. It also covers the onshore fabrication, reel-lay and pre-commissioning of 14,000 feet of 14-inch pipeline that includes the pull-in of a 12-inch riser at an existing offshore platform scheduled to be completed using McDermott vessels, Derrick Barge 50 (DB50) and the North Ocean 105 (NO105). Project completion is expected to be in the third quarter of 2016. The pipeline will be welded at McDermott’s new Gulfport, Mississippi, spoolbase.

“McDermott’s customer-focused approach, in combination with project execution expertise, best-in-class assets and alignment with the client on project objectives set us apart,” said Scott Munro, Vice President for Americas, Europe and Africa. “We’re pleased to be able to provide an integrated approach involving our new spoolbase in Gulfport, the NO105 and the DB50 that addresses all project drivers to deliver the best overall solution.”

Revenue from the award will be included in McDermott’s fourth quarter 2015 backlog.

Fugro has been awarded a contract by Esso Exploration and Production Guyana Limited, an ExxonMobil affiliate, for survey services at a deepwater field development offshore Guyana. The contract provides for autonomous underwater vehicle (AUV) geophysical survey and an environmental baseline survey, along with shallow geohazard and geotechnical coring.

The discovery of more than 295 feet of high quality, oil-bearing sandstone reservoirs in the Stabroek Block of the Liza Field represents a significant deepwater production find in the Guyana-Suriname basin.

Fugro Americas will perform the work

Fugro will acquire, process and analyse high quality AUV multibeam bathymetry, side scan sonar and sub-bottom profiler data, as well as environmental and geological/geotechnical samples, providing seabed and shallow sub-seabed information to support the initial development of offshore structures in the field. The survey will cover an area of approximately 640 square kilometres in depths reaching 2,800 metres.

Patrick Lee, P.E., CPE. Aust., Arctic Geotechnical Engineer at ExxonMobil said, “The ability to provide all relevant expertise and skilled personnel to undertake this complex project highlights Fugro as the right company for this job.”

Melissa Jeansonne, Vice President, Fugro added, “Fugro has executed numerous high profile, large scale, and remarkably successful geophysical and geotechnical programmes throughout the globe, including many of the largest surveys in the oil and gas industry, and we look forward to continuing this model of excellence in the Guyana-Suriname basin.”

Statoil and COSL have received confirmed information from the police that one person has died as a result of the breaking wave that hit the drilling rig COSL Innovator on Wednesday, December 30, 2015.

Two other people were injured and are receiving medical treatment ashore. The rig is now heading to shore under its own power, while evacuation takes place.

COSL and Statoil were notified at 5 pm on Wednesday 30 December that three people had been injured when a breaking wave hit COSL Innovator. Statoil and COSL have mobilized their emergency response organizations.

COSL Innovator (photo) is under contract to Statoil at the Troll field in the North Sea, west of Bergen. The rig had been taken off the well as a result of the bad weather before the incident occurred. The breaking wave also caused some damage to the rig's accommodation module.

The injured persons have been flown to shore by Sea King helicopter from the Joint Rescue Coordination Centre and by one of Statoil’s own rescue helicopters.

Statoil is assisting COSL with evacuation of the rig down to the safety crew. Evacuees are being flown ashore.

A phone number has been established for the next of kin in connection with this incident.

For COSL: +47 952 69 495 (new number)

DNV GL, the leading technical adviser to the oil and gas industry, today published the first industry standard providing guidance on offshore personnel transfer by gangway. DNVGL-ST-0358 will contribute in documenting and securing safe operational performance of offshore gangway solutions and contribute to predictability and transparency within the industry.

Offshore gangways are used as a bridge between two vessels or between a fixed object and a floating installation to transfer people, cargo or equipment. For offshore operations, offshore gangways provide a safe and cost effective alternative to personnel transfer by helicopter, basket transfer or boat landing.

The gangways can take many forms ranging from use for long duration personnel transfer between accommodation units and offshore production assets, to use for short duration transfer between service vessels and unmanned installations such as offshore wind turbines, offshore fish farms and similar installations.

“By addressing a complete set of requirement for materials, strength, safety and functionality as well as testing and recommended in-service follow-up, we have created a specific and dedicated standard to make gangway operation safer and more efficient,” says Per Arild Åland, Business Development, Offshore Classification, DNV GL – Maritime.

Until now, the ISO7061 standard from 1993 has partly served as a reference document by industry for offshore gangway applications despite only addressing ship-to-shore transfers. Next to the ISO07061, offshore gangways are also certified against man-riding crane standards. The limited relevance and lack of offshore specific requirements has driven the development for a dedicated offshore gangway standard providing in-depth and specific guidelines on offshore gangway operation.

In 2013, DNV GL gathered major industry players in a joint industry project to examine offshore gangway transfer operations. Experience gained through this W2W ("walk-to-work") project resulted in the publication of an industry guidance to assist offshore facility operators achieve safe and efficient personnel transfers to/from their facilities via a gangway system on a workboat, ship or semi-submersible.

The new standard, DNVGL- ST-0358, is the result of further development of this work and continuous DNV GL research. It covers the majority of gangway operations offshore including where there is controlled or uncontrolled people flow. The Standard for Certification of Offshore Gangways reflects the experience gathered on all relevant operating modes and will contribute to predictability and transparency, and at the same time help to reduce risk in personnel transport offshore.

“Finally we can base our work on a set of definite criteria. The industry has for some time needed a dedicated set of guidelines addressing the specifics of offshore personnel transfer through gangway solutions,“ says Christian Bernbo, Business Area Manager Gangway in Marine Aluminium, Norway.

“The new standard for offshore gangways is a welcome addition to DNV GL’s list of guidelines to improve quality, function and safety for offshore personnel. As a launching customer we believe this will be a crucial part in our development of the first compact mobile motion compensating gangway solution,” says Marcel van Meel, General Manager in L-bow Offshore Access Solutions BV, The Netherlands.

The new standard DNVGL-ST-0358 is launched today in a workshop at the London Offshore Accommodation Access conference, where leading industry experts gather to discuss practical guidance on ensuring safe and efficient crew transfer in difficult offshore environments.

Download the standard here.

The Bureau of Safety and Environmental Enforcement (BSEE) has announced that offshore oil and gas lessees and owners of operating rights are now required to submit summaries of their actual expenditures for the decommissioning of wells, platforms and other facilities on the Outer Continental Shelf (OCS) as part of the final Decommissioning Costs Rule.

This information will help BSEE to better estimate future decommissioning costs related to OCS leases, rights-of-way, and rights of use and easement. The Bureau of Ocean Energy Management may use BSEE's future decommissioning costs estimates to set necessary financial assurance levels to minimize or eliminate the possibility that the government will incur decommissioning liability.

The Final Decommissioning Costs Rule will be published in the Federal Register Reading Room today and can be viewed by clicking here.

Prosafe and Statoil (U.K.) Ltd (“Statoil”) have agreed to re-phase the Mariner Project in the UK Continental Shelf of the North Sea from 2016 into 2017, and extend the firm hire duration from 8 months to 13 months.

Operations at the Statoil Mariner platform will commence within Q3 2017 and will be performed by either the Safe Zephyrus or Safe Boreas accommodation support vessel. In addition to the revised extended firm hire duration, Prosafe has granted Statoil six additional one-month options linked to the Mariner project.

The Mariner Field is located on the East Shetland Platform of the UK North Sea approximately 150km east of the Shetland Isles. Image courtesy: Statoil

Total value of the re-phased and extended firm hire duration for the Mariner Project has increased from USD 76.3 million to approximately USD 131.8 million, including a re-phasing charge payable in 2016.

Prosafe is the world's leading owner and operator of semi-submersible accommodation vessels. Operating profit reached USD 248.3 million in 2014 and net profit was USD 178.8 million. The company operates globally, employs 800 people and is headquartered in Larnaca, Cyprus. Prosafe is listed on the Oslo Stock Exchange with ticker code PRS.

For more information, please refer to www.prosafe.com

Statoil has awarded maintenance and modification agreements worth NOK 24 billion for the company’s installations on the Norwegian continental shelf (NCS) and for the onshore plants at Sture, Kollsnes, Kårstø and Melkøya.

Competition agreements for more complex modification services have also been awarded.

Maintenance and modifications are essential for safe and efficient operation of Statoil’s offshore and onshore installations. New compensation formats have been prepared to encourage continuous improvement and higher productivity.

Maintenance work on the Norne FPSO. (Photo: Rune Solheim)

“These awards will strengthen the NCS competitiveness and stimulate long-term activity and value creation. We look forward to cooperating with the suppliers, and jointly achieve lasting and sustainable improvements with regard to efficient production, safe operation and high integrity at our plants,” says senior vice president for operations technology of Development and Production Norway (DPN), Kjetil Hove.

This time the company decided to split the whole portfolio in two: main contractor agreements and competition agreements. The key supplier agreements portfolio has an estimated total value (including options) of NOK 24 billion. The contract period is six years plus a four-year extension option, and starts in the first quarter of 2016. Remaining options of existing maintenance & modifications agreements will not be exercised.

The main contractor agreements have been awarded to the following companies:

The competition agreements portfolio covers a period of 10 years that starts in the first quarter of 2016. The agreements form the basis for individual project competitions where one, two or more suppliers are invited to participate.

The competition agreements have been awarded to the following companies:

The awards reveal that the company is continuing its important improvement effort together with familiar maintenance & modification suppliers, but they also present a new element as a new player is included in the agreement portfolio.

“The procurement we have made is part of the effort of creating a more competitive industry. The importance of making continuous improvements and changing our working methods has run as a thread through the whole process. In the time ahead we will work closely with the suppliers to ensure that this work is pursued when the agreements enter into force,” says senior vice president for procurements in Statoil, Jon Arnt Jacobsen. A comprehensive procurement process has been carried out, where Statoil has worked closely with the bidders to find the best solutions based on evaluations of health, safety and environment (HSE), technical and commercial criteria.

Anadarko Petroleum Corporation (NYSE: APC) announces that, along with the concessionaires of Offshore Area 1 (operated by Anadarko Mozambique Area 1 Ltd. (AMA1)) and Offshore Area 4 (operated by Eni East Africa (EEA)), it has signed a Unitization and Unit Operating Agreement (UUOA) for the development of the massive natural gas resources that straddle the two blocks.

"We appreciate the cooperation of the Government of Mozambique, Eni and our co-venturers in Offshore Area 1 for their collaborative efforts in achieving this UUOA, which is fair, equitable and consistent with best industry practices," said Mitch Ingram, Anadarko Executive Vice President, Global LNG. "We have already made tremendous progress advancing the natural gas resources in the Golfinho and Atum fields that are fully contained within our block, and with this UUOA, we can also expect to move the Prosperidade and Mamba straddling reservoirs forward more efficiently, while capitalizing on greater economies of scale."

Under the terms of the UUOA and previously announced Decree Law, the Prosperidade and Mamba straddling natural gas reservoirs, which comprise the Unit, will be developed in a separate but coordinated manner by the two operators until 24 trillion cubic feet (Tcf) of natural gas reserves (12 Tcf from each Area) have been developed. All subsequent development of the Unit will be pursued jointly by the Area 1 and Area 4 concessionaires through a joint-venture operator (50:50 Anadarko and Eni). The UUOA is subject to final approval by the Government of Mozambique.

DOMESTIC NATURAL GAS

In addition, Anadarko reached a Memorandum of Understanding (MOU) with the Government of Mozambique to provide natural gas from its Mozambique LNG development for domestic use.

Under the terms of the MOU, Offshore Area 1 will provide initial volumes of approximately 50 million cubic feet of natural gas per day (MMcf/d) per train (100 MMcf/d) for domestic use in Mozambique. The natural gas will be provided at pricing that is fair to all parties and supports local natural gas development, and the concessionaires are prepared to sell up to 300 MMcf/d of additional volumes into the domestic market in future years as projects are matured and commercial terms agreed.

"Signing this MOU is an important step," added Ingram. "We look forward to continuing to work with the Government of Mozambique to finalize the legal and contractual framework that will enable us to deliver natural gas for domestic projects and LNG cargoes for export to premium markets around the world, both of which will benefit Mozambique through a reliable source of cleaner energy and significant revenue generation."

OFFSHORE AREA 1

Anadarko is the operator of the Offshore Area 1 Block with a 26.5-percent working interest. Co-venturers include the National Oil Company Empresa Nacional de Hidrocarbonetos, E.P. (ENH) (15 percent), Mitsui E&P Mozambique Area 1 Limited (20 percent), Beas Rovuma Energy Mozambique Limited (10 percent), BPRL Ventures Mozambique B.V. (10 percent), ONGC Videsh Limited (10 percent), and PTTEP Mozambique Area 1 Limited (8.5 percent).

OFFSHORE AREA 4

Eni operates Area 4 with a 50-percent indirect interest owned through Eni East Africa (EEA), which holds 70 percent of Area 4. The other partners are Galp Rovuma (10 percent), KOGAS Mozambique (10 percent) and ENH (10 percent). CNODC owns a 20-percent indirect participation in Area 4 through Eni East Africa.

Pipeline development projects are becoming increasingly complex, spanning longer and deeper terrains. Pipelines must operate at higher pressures and temperatures, in harsher environments and to stricter regulatory requirements. Projects must also be feasible in a cost-constrained market. DNV GL is inviting industry players to take part in two Joint Industry Projects (JIP) to help the industry work more efficiently while maintaining safety.

The first JIP will reduce uncertainty in tensile testing results and the associated costs of inaccuracies and delays, while the second will help operators save time and money in adapting to new industry requirements.

Gaining confidence in tensile testing results


Inaccurate yield strength measurements can have significant negative implications for a pipeline project, ranging from schedule disruptions and commercial disputes to unanticipated costs and potential regulatory challenges. Current industry standards allow a wide range of tensile testing parameters, creating variability and uncertainty in the test results.

The Standardization of Flattened-strap Tensile Testing of Line Pipe JIP will investigate different tensile testing variables that affect results, including material properties, sample flattening and preparation practices, testing equipment and testing procedures. The objective is to establish testing parameters and procedures to reduce the variability in yield strength results for large diameter line pipe. The results will be applicable to both onshore and offshore pipelines.

“The project will ensure that the tensile testing results are both more reproduceable and indicative of line pipe performance. It will reduce the uncertainty of the results and give pipeline operating companies the confidence they need when purchasing new line pipe as well as during the testing and analysis of existing pipe, ultimately saving time and cost,” says Melissa Gould, Senior Engineer, DNV GL - Oil & Gas.

The JIP will be carried out in conjunction with recognized parties such as the US National Institute of Standards and Technology (NIST) Material Measurement Laboratory (MML) and the former chair of the ASTM (American Society for Testing and Materials) Committee E28, Earl Ruth. The project is expected to last for 18 months and the results will be suitable for incorporation into standards and recommended practices, as applicable.

Standardized approach to meet new requirements for girth weld repairs


The offshore and onshore pipeline industry is adapting to the updated requirements for repair welding in the Twenty-First Edition of the well-known API Standard 1104, “Welding of Pipelines and Related Facilities”. The updates place more requirements on the qualification of repair welding procedures and welders.

The JIP on the Development of Industry Best Practice for Girth Weld Repairs will, in cooperation with pipeline engineering specialists Kiefner/Applus RTD, address the technical aspects of girth weld repairs and the practical aspects of repair welder qualification during the construction of new pipelines. The project is expected to be concluded within 18 months and will result in procedures and guidelines to help the industry meet the new API 1104 requirements.

“Repair welds are often made under more challenging conditions than production welds, which can potentially reduce the quality of the completed welds,” says Brad Etheridge, Senior Engineer, DNV GL – Oil & Gas. “The project fulfils an industry need to meet new requirements and has the potential to reduce cost and complexity, increase safety and reliability, and deliver better quality pipelines.”