CNOOC Limited (the "Company", NYSE: CEO, SEHK: 00883) announced today that its parent company, China National Offshore Oil Corporation (CNOOC) has signed production sharing contract (PSC) with Shell China Exploration and Production Company Limited (Shell) for Block 35/10 in Yinggehai Basin in the South China Sea.

Block 35/10 is located in Yinggehai Basin in the South China Sea. It covers a total area of 3,427 square kilometers with water depth of 80-110 meters.

According to the terms of the PSC, Shell will conduct 3D seismic data survey and may drill exploration wells in the block during the exploration period, in which all expenditures incurred will be borne by Shell. CNOOC has the right to participate in up to 51% working interest in any commercial discoveries in the block.

A mere 25 hours after the deck for the Gudrun platform left Aibel's shipyard in Haugesund, the deck had been lifted into place on the steel undercarriage in the North Sea.

The platform deck was positioned on the undercarriage at 17:43 on Thursday, July 18, 2013.
(Photo: Kjell-Arve Tysnes/Statoil)

"The operation has been safe and efficient with favorable sea conditions," says Øyvind Haugsdal, transport and installation manager for the Gudrun project. He has been planning this lifting operation for the last three and a half years:

"It was an incredible feeling to watch it all go as planned," he says.

The platform deck was positioned on the undercarriage at 17:43 on Thursday. The lifting operation marks one of the most important milestones in the project.

Gudrun reached its full height of 232.5 meters when the flare tower was lifted into place on Friday morning.

The platform deck and undercarriage will now be connected and the platform will be prepared for production.

On time - under budget

"The most significant milestone in the project is the start of production in the first quarter of next year. We will achieve that too," says Øystein Michelsen, executive vice president for Development & Production Norway in Statoil.

The field development is on track to cost around NOK 2 billion less than the original investment framework of NOK 21 billion. There are several reasons for this:

"We were given good prices when we awarded the contracts in 2010, in a market characterized by the financial crisis," says Margaret Øvrum, executive vice president for Technology, Projects and Drilling in Statoil.

This was a win-win situation. The Gudrun license received favorable pricing and the suppliers received crucial contracts.

"Just as important were the strict change controls during the project and strong commitment across the entire Gudrun organization in order to meet this savings target. All the different disciplines have contributed," Øvrum says.

The decking contract (engineering work, construction and procurement) was awarded to Aibel.

The engineering work was carried out in Norway and Singapore. Two of the deck modules were constructed at Aibel's shipyard in Thailand and one at the shipyard in Haugesund, with supplies from Poland.

The deck was also connected in Haugesund. The helicopter deck came from China and the living quarters were supplied by Apply Leirvik.

The steel undercarriage, which has already been ready at sea for nearly two years, was supplied by Kværner Verdal. Transport and installation were performed by the Italian company Saipem.

Apache Corporation (NYSE, Nasdaq: APA) announces it has agreed to sell its Gulf of Mexico Shelf operations and properties to Fieldwood Energy LLC (Fieldwood), an affiliate of Riverstone Holdings, for cash proceeds of $3.75 billion. In addition, Fieldwood will assume all asset retirement obligations for these properties, which, as of June 30, 2013, Apache estimated at a discounted value of approximately $1.5 billion. Apache will retain 50 percent of its ownership interest in all exploration blocks and in horizons below production in developed blocks, where high-potential deep hydrocarbon plays are being tested.

"This transaction is an important step toward rebalancing our portfolio," said G. Steven Farris, chairman and chief executive officer. "At the end of this process, we expect Apache to have the right mix of assets to generate strong returns, drive more predictable production growth, and create shareholder value.

"Apache has had a great run on the Gulf of Mexico Shelf over the last 30 years, and the Shelf region and staff have played a vital role in making Apache the company it is today.  As our company has evolved, however, so have our investment priorities," Farris said. "Since 2010 we have increased our focus in North America on capturing and developing a deep inventory of onshore assets, where we have been generating exceptional production growth at attractive rates of return. The shallower horizons in the Shelf have matured to the point that dependable production growth is more difficult to achieve than from  our onshore liquids plays. We remain excited about the potential associated with the emerging plays under existing salt domes, which is why we retained 50 percent of the deep rights on 406 blocks held by production and 50 percent of all rights in 146 primary term blocks."

Apache previously announced plans to divest $4 billion in assets by year-end 2013 as part of its ongoing portfolio assessment and to focus on more recently acquired properties. The company intends to use proceeds to reduce debt and enhance financial flexibility and to repurchase Apache common shares under a 30-million-share repurchase program authorized by the Board of Directors earlier this year.

Transaction Terms and Closing Conditions

The effective date of the transaction is July 1, 2013. The sale is subject to customary regulatory approvals and closing conditions and is projected to close September 30, 2013. Apache will operate the properties during a transitional period.

Fieldwood has agreed to offer employment to substantially all of Apache's GOM Shelf employees.

Goldman Sachs & Co. acted as financial advisor and Bracewell & Giuliani LLP served as legal advisor to Apache on the transaction.

Apache's Shelf Portfolio

Apache's Shelf portfolio — the largest operated asset base in Gulf waters to 1,000 feet deep — comprises more than 500 blocks with 1.9 million net acres and year-end 2012 estimated proved reserves of 133 million barrels of oil and natural gas liquids and 636 billion cubic feet of natural gas. In the first quarter of 2013, the fields averaged net production of approximately 50,000 barrels of liquid hydrocarbons and 254 million cubic feet of natural gas per day.

"Employees in Apache's Gulf of Mexico Shelf Region are the most experienced, technically knowledgeable, and dedicated group in the industry. This team  is committed to safe and environmentally responsible operations during the transition and in the new ownership structure," Farris said.

Apache's ratio of incidents of noncompliance per inspected component — a key measure of offshore safety performance — has been at or better than industry average for the last five years. In 2012, Apache was one of the first Gulf of Mexico operators to voluntarily submit an audit of its Safety Environmental Management System (SEMS) to the Bureau of Safety and Environmental Enforcement. SEMS focuses on operating procedures, hazard analysis, mechanical integrity and training for all assets and personnel operating in the Gulf of Mexico.

BMT Group Ltd, a leading international design, engineering and risk management consultancy, is pleased to announce that Wendy Barnes has joined the Board of Directors as a Non-executive Director.

Wendy is presently a Non-executive Member of the main Board of OFWAT, the economic regulator of the water industry in England and Wales, a Non-executive Director of the Foreign & Commonwealth Office Services and a Non-executive Director at the Met Office.

She was Interim Chief Operating Officer for the UK Government’s Department of Energy & Climate Change with responsibility for corporate services and nuclear decommissioning and security policy until December 2012.  Wendy was also previously a member of the main Board of the Ministry of Defence’s Defence Equipment and Support organisation (DE&S) and a Non-executive Director of two Government security departments.  Prior to this, Wendy spent eleven years with United Utilities and previously ten years with British Nuclear Fuels in a wide range of roles including customer service, marketing and business development.

On her appointment, Wendy commented: “I am delighted to be joining BMT at a time when the business is enjoying significant success and growth.  I am looking forward to the challenge of contributing to a group that is diverse in both its geographical spread and in its markets.  Having served on a number of boards, I am keen to use my past experience to the benefit of the group.”

Neil Cross, Chairman of BMT Group said: “I am very pleased to welcome Wendy to the Board of BMT.  She will bring a wealth of knowledge and expertise to the company and will help drive our continued growth and development.”

Wood Group Mustang names Bob Lindsay CEng MIMechE president of the Offshore Business Unit, leading its global strategic direction and development.

A native of Australia, Lindsay brings to the table 35 years of management experience in international offshore business operations, having held various senior and executive management roles. His expertise includes design, construction, project management and business development of oil & gas production facilities that have included assignments in the UK, Brazil, Korea, South Africa, US and Australia.

Lindsay holds a Master of Business Administration from The Open University in the UK, a Graduate Diploma in Business Administration from Western Australia Institute of Technology and an Associateship in mechanical engineering (Bachelor of Science equivalent) from Western Australia Institute of Technology. He is a member of the Institute of Petroleum, the Institute of Engineers (Australia) and the Institution of Mechanical Engineers.

Wood Group Executive Vice President Michele McNichol shared, "Bob's personable and team-focused style, combined with his depth of offshore business operations, makes him a natural fit at Wood Group Mustang. It was of paramount importance to find a leader who not only has the technical and international business talent required for the job, but who also embodies our people-oriented culture."

W&T Offshore, Inc. (NYSE: WTI) announced today that it has made a subsalt discovery in a deep shelf exploratory target beneath its Ship Shoal 349 "Mahogany" Field.  The SS 359 A-14 well has exceeded our expectations and is currently producing from the targeted T-Sand (in excess of 17,200' total vertical depth), at an initial flow back rate of 3,030 barrels of oil per day and 5.6 million cubic feet of gas per day, for a total of approximately 4,000 barrels of oil equivalent (Boe) per day (3,310 Boe per day net of royalty to W&T) with a flowing tubing pressure of approximately 9,400 psi surface pressure.  The T-Sand is the deepest sand discovered in this field, as there is additional pay identified in the M-Sand, N-Sand, and O-Sand, all of which represent future reserve additions to the Company.  The well also penetrated a thicker than expected P-sand interval (the main field pay sand) which will also serve as a future recompletion.  In total, the A-14 well logged over 370 feet of net oil pay, with the T-Sand accounting for 108 feet of the total net pay.  Success from the A-14 T-sand will stimulate additional drilling in 2014 to exploit the four newly discovered oil sands that were encountered in the A-14 well.  W&T holds a 100% working interest in the field.

Tracy Krohn, W&T Offshore's Chairman and CEO, stated, "Our exploration team utilized our subsalt imaging technology to identify and deliver this subsalt discovery which is a deep shelf exploration extension to our producing Mahogany Field.  This new oil discovery is part of our organic growth plan and adds substantial value to the Company.  We found a very high quality oil sand in the T-sand reservoir with great flow characteristics.  Another key value driver on this project is our ability to produce this discovery immediately through our existing infrastructure at Mahogany.  We are evaluating additional targets in this highly prolific field based upon our continuing success and look forward to our next exploratory well at Mahogany, the A-15 well, which should begin drilling in in September."    

The platform rig at Mahogany is currently working on a major recompletion in the A-4 well, designed to bring a behind pipe P-Sand interval into production at an expected rate of 1,000 Boe per day, net of royalties to W&T with an anticipated production date of August or September.  Following the A-4 recomplete we expect to spud the A-15 subsalt exploratory well, a multi-horizon target that is anticipated to encounter multiple stacked oil sand targets.  The A-15 well is scheduled to reach total depth near the end of 2013 or early 2014 with a target IP rate of 1,390 Boe per day, net of royalty to W&T.  The unrisked reserve potential associated with the A-15 well is anticipated to be in the range of 1.8 to 6.2 million Boe. 

Eastern Shipbuilding Group, Inc. is pleased to announce the delivery of the M/V HARVEY DEEP-SEA, the fourth of its Tiger Shark Class Offshore Support Vessels constructed for Harvey Gulf International Marine, LLC of New Orleans, LA. The HARVEY DEEP-SEA was delivered July 19, 2013. The vessel was launched at Eastern’s Allanton Facility in mid-December of last year. The HARVEY DEEP-SEA is Eastern’s second Multi-Purpose Light Construction Vessel (LCV) for Harvey Gulf. Eastern Shipbuilding Group has now constructed 11 vessels for Harvey Gulf since 2002.



Last month Harvey Gulf announced the contract signing for its 12th, 13th and 14th vessels to be constructed by Eastern Shipbuilding, the M/V HARVEY SUB-SEA, HARVEY BLUE-SEA and HARVEY INTERVENTION. This new STX Marine IMR-340H Inspection, Maintenance and Repair Vessel design measures 327'x 73'x 29'-3" and features a 250MT AHC Sub-Sea Crane. Additionally, the HARVEY INTERVENTION will feature a 250MT modular handling tower with top drive capabilities.



The HARVEY DEEP SEA is an ABS XA1, XAMS, XACCU, Circle E, ENVIRO+, Green Passport (GP), NBLES, CRC, HELIDK, Offshore Support Vessel and certified under SOLAS/IMO. ABS class also includes the ABS DPS-2 and Firefighting FFV-2 notations. It is AC Diesel-Electric powered with twin Schottel Z-drives and three Schottel STT4 bow thrusters and its dimensions are 302’ X 64’ X 24’-6". This Multi-Purpose Construction Vessel (LCV), the HARVEY DEEP-SEA, is equipped with an active heave-compensated, National Oilwell Varco 165-ton knuckle boom Sub-Sea Crane capable of lifting/setting at depths up to 10,000 ft. The HARVEY DEEP-SEA is now scheduled to sail to New Orleans, Louisiana for final installation of its Sub-Sea Crane. This vessel will fill a niche in a very selective market, covered in the past by mostly foreign flag construction vessels.

Seatronics do Brazil, an Acteon company, announces the appointment of Thiago Montanari as sales manager.  Montanari is based in Rio de Janeiroand will report directly to Seatronics vice president, Fabio D’Agostino.

Montanari has six years of experience in the offshore industry, working extensively in the Caspian (Kasakhstan), Mediterranean, Adriatic and Caribbean (Cuba) seas, as well as in Angola, Patagonia and Libya.

Montanari will be responsible for maturing existing relationships while growing and developing global business opportunities with existing and potential clients.

Before joining Seatronics, Montanari worked at Ambipetro, where he was an operations supervisor and party chief for its offshore operations. Prior to this role, he spent four years at GASITALY as an offshore surveyor, responsible for MBES, Side Scan Sonar and Sub-bottom profiling data acquisition and positioning.

Montanari holds a Bachelor of Science in Oceanography from Vale do Itajai University in Brazil.

“This is a key role at Seatronics, and I am pleased to have Thiago join the team,” said vice president Fabio D’Agostino. “Thiago’s international expertise and industry knowledge will provide guidance and leadership to our Brazilian sales team while enhancing customer relations in the region.”

The Bureau of Ocean Energy Management completed its required evaluation to ensure that the public receives fair market value for tracts leased as part of Central Gulf of Mexico Oil and Gas Lease Sale 227, which was held on March 20, 2013.

After extensive economic analysis, BOEM has awarded 307 leases on tracts covering 1,648,831 acres to the successful high bidders who participated in the sale, which made 7,299 unleased blocks covering about 38.6 million acres available offshore Louisiana, Mississippi and Alabama. The accepted high bids are valued at $1,199,052,037.

The terms of Sale 227 continued a range of incentives to encourage diligent development and ensure a fair return to taxpayers — including an increased minimum bid for deepwater tracts, escalating rental rates and tiered durational terms with relatively short base periods followed by additional time under the same lease if the operator drills a well during the initial period.

BOEM increased its minimum bid requirement in deepwater to $100 per acre, up from $37.50 in Central Gulf of Mexico lease sales prior to 2012. Rigorous historical analysis showed that leases that received high bids of less than $100 per acre have experienced virtually no exploration and development activities.

During the sale, 52 companies submitted 407 bids totaling $1,595,397,446 on 320 tracts. A total of $1,214,675,536 was received in high bids. BOEM rejected thirteen high bids, totaling $15,623,499 after determining that the value of those bids was insufficient to provide the public with fair market value for the tracts.

BOEM will reoffer these tracts as part of the next Central Gulf of Mexico sale, which is currently scheduled for March of 2014.   

The highest bid accepted was $81,787,999, submitted by Samson Offshore, LLC and Statoil Gulf of Mexico LLC for Walker Ridge, Block 271. The tract is at depths greater than 5,249 feet (1600 meters) and received two bids.

The sale’s results reflect strong, continuing industry interest in the Gulf of Mexico and President Obama’s commitment to expand oil and natural gas production safely and responsibly -- reducing our dependence on foreign oil and supporting American energy jobs.

As part of the Obama Administration’s all-of-the-above energy strategy, domestic oil and gas production has grown each year the President has been in office, with domestic oil production currently higher than any time in two decades and natural gas production at its highest level ever. Renewable electricity generation from wind, solar, and geothermal sources has doubled and foreign oil imports now account for less than 40 percent of the oil consumed in America – the lowest level since 1988.

For more information on Sale 227 go to www.boem.gov/sale-227/.

Jon Holvik has taken over as President of the Houston headquartered Kongsberg Maritime Inc.; the US subsidiary of the world’s leading supplier of Dynamic Positioning (DP) and Automation/Control systems for offshore vessels, rigs and merchant shipping.

Norwegian born Jon, an electronics graduate from the Technical College in Kongsberg, Norway has been a Kongsberg Maritime employee since the late eighties. Starting his career as a Service Engineer he became part of Kongsberg Maritime when it acquired his then employer, Shipmate Norway. Jon became a DP Hardware and Software Engineer in 1990, and in 1993 through 1995 served as Service Manager for KONGSBERG in Singapore, responsible for service of all KONGSBERG products in SE Asia.

 He moved into sales in 1996 upon returning to Norway. As Sales Manager for Kongsberg Maritime his responsibility was for Scandinavia,  Middle East and Brazil from 1996 to 1998. In 1998, Jon moved to Houston to become, Vice President of Sales for Kongsberg Maritime Inc.. After 10 years, he had an 18 month guest appearance as VP Rig Broker for RS Platou in Houston from July 2008 until February 2010 but returned to Kongsberg Maritime Inc. as Vice President of Sales in February 2010. As of June 24, 2013, he became President of Kongsberg Maritime Inc. in Houston.

“I’m delighted to takes the reigns at Kongsberg Maritime Inc. during an exciting period of industry growth,” comments Jon. “Kongsberg Maritime’s Integrated DP and Automation/Control Systems, Safety Systems and Navigation Systems feature on over 90% of all deepwater MODUs ordered over the past 3 years and are a mainstay of critical exploration and production operations throughout the Gulf of Mexico. We are key partner to a large number of operators in the region and I am keen to strengthen and expand on our existing customer relationships.”

In addition to managing sales of the diverse and highly regarded KONGSBERG portfolio of technology for offshore applications, the Kongsberg Maritime Inc. Houston HQ is also home to the largest Dynamic Positioning and Automation Training center in the USA. Over 1400 students took courses in 2012, and with new instructors on board, this number is expected to increase in 2013.

“Through our position as a leading Dynamic Positioning training organization in North America, Kongsberg Maritime Inc. in Houston is providing a vital service to the offshore industry, where demand for skilled DP operators is higher than it has ever been,” continues Jon.

As company President, Jon also takes responsibility for the US Customer Support and project office, located in the Kongsberg Maritime Inc. New Orleans office, which celebrates its 10 year anniversary in August 2013.

The office is positioned to support Kongsberg Maritime customers in the burgeoning offshore industry in GoM and Mexico and has recently become part of a world-wide Customer Support revamp that has made it a major point in a new Kongsberg Maritime follow-the-sun approach to global support.

Follow-the-sun means that whilst supporting customers in the region, support staff at the Kongsberg Maritime Inc. New Orleans office also handle global customer requests, ensuring they have a human to deal with even if it is out of office hours in their location.

Oceaneering International, Inc. (NYSE: OII) has reported record quarterly earnings for the second quarter ended June 30, 2013. On revenue of $820.4 million, Oceaneering generated net income of $98.8 million, or $0.91 per share.  During the corresponding period in 2012, Oceaneering reported revenue of $672.5 million and net income of $72.6 million, or $0.67 per share.

  Year over year and sequentially, quarterly EPS increased as all business segments achieved higher operating income, led by Subsea Products and Subsea Projects. 

M. Kevin McEvoy, President and Chief Executive Officer, stated, "Our quarterly EPS was above our guidance range, and was up 32% over the first quarter of this year and up 36% compared to the second quarter of 2012.  Our above-guidance performance was attributable to sales of subsea hardware, demand for asset integrity services offshore Norway, and early completion of a theme park project.  We achieved record quarterly operating income from Remotely Operated Vehicles (ROV), Subsea Products, Asset Integrity, and Advanced Technologies.

"Our outlook for the second half of this year remains very positive and essentially unchanged from last quarter.  Given this outlook and our year-to-date performance, we are raising our 2013 EPS guidance range to $3.20 to $3.35 from $3.10 to $3.30.  Compared to 2012, we continue to forecast income growth for all of our operating segments in 2013.  Relative to the first half of 2013, we expect to generate higher operating income during the second half led by ROV and Subsea Projects. 

"Compared to the first quarter, Subsea Products operating income rose on the strength of increased revenue and profitability from tooling and subsea hardware.  Subsea Products backlog at quarter end was $902 million, up from our March backlog of $776 million and $621 million one year ago.  The sequential and year-over-year increases in backlog were predominantly attributable to umbilical awards.  During the quarter we announced two large umbilical contracts, one for offshore Egypt and one for the U.S. Gulf of Mexico (GOM).

"Subsea Projects operating income increased due to a seasonal uptick in GOM demand for deepwater intervention and an escalation of work under our field support vessel services contract offshore Angola.  The work offshore Angola included the provision of another chartered vessel, the Maersk Attender, for half of the quarter.  The charter term on the Maersk Attender runs through September 2013, followed by two 45-day renewal options, subject to our customer's work program.

With the latest seismic and drilling technologies, the Cardamom development is expected to deliver new production from the deep waters of the Gulf of Mexico to existing infrastructure

Nearly two decades after setting a world water-depth record for drilling and production, Shell’s Auger tension-leg platform is still playing a central and innovative role in the company’s deep water Gulf of Mexico portfolio – currently producing some 55,000 barrels oil equivalent (boe) per day (Shell share ~30,000 boe per day), and acting in the future as the host platform for the Cardamom subsea development. The Cardamom discovery well also set records three years ago, for subsurface length and depth.

More than a half mile down, Shell is connecting Cardamom wells back to Auger - work that will involve retrofitting the platform and a production shut-in at Auger, which should restart in the fourth quarter of 2013. Once online in 2014, Cardamom (100% Shell share) is expected to produce at a peak rate of 50,000 boe per day.

"The Gulf of Mexico remains an important part of Shell’s portfolio and strategy, and it is expected to generate substantial growth over the next several years,” said John Hollowell, Executive Vice President for Deep Water, Shell Upstream Americas. “Cardamom is a great example of using existing infrastructure to increase oil and gas production in a less capital intensive way.”

In its lifetime, the Auger platform has produced more than 300 million boe.

The Bureau of Safety and Environmental Enforcement (BSEE) and the U.S. Coast Guard are continuing to oversee Walter Oil & Gas Corporation’s response efforts to secure the natural gas well and extinguish the subsequent fire that started after the operator’s loss of well control Tuesday.

Both BSEE and Coast Guard conducted multiple overflights on Wednesday to supplement responsible party flights to maintain aerial surveillance of the scene. The natural gas well continues to fuel the fire on the rig. The derrick and drill floor structure has collapsed over the rig, and a very light sheen that dissipates quickly has been observed in the ocean.

Photo: Hercules 265 Jack-Up Rig 

 A water curtain is being applied by a fire-fighting vessel to the rig. A water curtain’s purpose is not to extinguish the fire, but to provide heat protection to the rig. Coast Guard Cutter Pompano and Cutter Cypress are on location enforcing the safety zone and assessing the changing conditions on the rig.

BSEE expects Walter Oil & Gas to submit a permit application to drill a relief well this evening. The permit, which would include details on the proposed well and the casing and cementing programs, must be approved by BSEE engineers before drilling could commence. BSEE continues to review and approve all operational plans and procedures for the response. BSEE's priority throughout this operation is the safety of the offshore workers and the protection of the environment.

BSEE and the Coast Guard have stood up a Command Center to respond to the event, which is happening 55 miles offshore Louisiana in 154 feet of water. Walter Oil and Gas Corporation experienced a loss of control of Well A-3 at approximately 8:45 a.m. July 23 on an unmanned platform at South Timbalier Block 220 while doing completion work on the sidetrack well to prepare the well for production. The operator reported the safe evacuation of 44 personnel from the Hercules 265 jack-up rig. Coast Guard confirmed that the fire began at 10:45 p.m. CDT July 23.

BSEE's investigation into the cause of the loss of well control is underway in coordination with Coast Guard. A Joint Information Center will be stood up beginning Thursday morning along with the Unified Area Command

 BSEE and the U.S. Coast Guard confirmed this morning, July 25, that the leaking natural gas well 55 miles offshore Louisiana has bridged over and the gas flow stopped. The fire has decreased to a small flame fueled by residual gas at the top of the well. Bridging is a well condition where small pieces of sediment and sand flow into the well path and restrict and ultimately stop the flow.

Both BSEE and Coast Guard have conducted overflights to visually confirm. BSEE and Coast Guard will continue overseeing response efforts until the event has come to a complete and safe resolution which includes securing the well. 

Seadrill Limited ("Seadrill") has signed a contract with Chevron China Energy Company for the newbuild ultra-deepwater drillship West Tellus in support of Chevron's affiliated global exploration program. The contract commences in China immediately upon shipyard delivery and thereafter relocates to Liberia. The agreement is for a period of 180 days with revenue potential of approximately US$150 million inclusive of bonus potential and mobilization.

Additionally, Seadrill is currently engaged in advanced discussions with a major oil company for a multi-year contract commencing in direct continuation of the Chevron contract. 

The West Tellus is a 6th generation drillship currently under construction for Seadrill at Samsung Heavy Industries shipyard in Geoje, South Korea, with expected delivery in September 2013. The rig will be outfitted to work in up to 10,000' of water and is capable of water depths up to 12,000' and drilling depths up to 37,000'. 

Per Wullf, CEO and President of Seadrill Management Ltd. says in a comment, "The multi jurisdiction contract for West Tellus demonstrates our willingness and ability to contract opportunistically and strategically when it is justified. The initial contract on West Tellus allows us to expand a long standing relationship with a key customer in the ultra-deepwater segment while also providing Seadrill the opportunity to place the West Tellus in West Africa, ready for a follow on contract."

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

Fugro Chance Inc. recently performed non-typical acoustic metrologies on four proposed jumpers in the Gulf of Mexico. By industry standards the measurements were completed in a substantially short time frame.

A typical metrology takes approximately 12 hours for one measurement, resulting in an anticipated operational time of around 48 hours in total. However, these non-typical acoustic metrologies were completed with accurate results in just 33 hours.

Two standard Sonardyne Compatt 6 transponders and two Sonardyne Lodestar GyroCompatts (LGCs) were used to acquire tilt magnitude and direction from manifold pressure caps to wellhead casings. Four Compatts were used to ensure repeatable results.

The LGC technology integrates acoustic positioning, attitude and heading reference, and sound velocity technologies all in one instrument. It provides wireless updates and extremely accurate measurements of attitude, heading, heave, surge, sway, pressure and acoustic positioning of any subsea object. By utilizing these LGCs, Fugro saved the client both time and money while providing highly accurate data.

Just days before European rules on offshore safety for European companies abroad enter into force, and just a few months before additional requirements for companies operating in U.S. waters take effect, the European Commissioner for Energy, Guenther Oettinger, has called for operating and drilling companies to deliver the highest standards including when operating outside of American and European regulated waters.

At the time of his visit to Washington, DC, on July 16, Commissioner Oettinger said that the path to a strong and reliable culture of offshore safety depends upon global companies operating to the highest standards. Offshore accidents around the world continue to involve American and European companies. This places the spotlight on the global companies – who have done much to improve standards since Macondo – to give leadership to safety wherever they operate, and where the U.S. and EU rules do not apply.

"Under separate arrangements coming into force this year in Europe and the U.S., national regulators will exercise additional vigilance over oil and gas companies to ensure they accelerate the advances in technology and human understanding achieved since Macondo, whilst exercising stringent control of risks of major accidents at all times," said Commissioner Oettinger.

"We call upon oil and gas companies and drilling contractors operating in European Union waters to respond to the challenge to their leadership in global safety and environmental protection. We call on them to exert their influence to see a rise in standards both rapidly and permanently, and to ensure the transparency of that achievement. Beginning without delay, we hope to see full and rigorous disclosure of safety data by all companies in the international industry associations' reports."

Commissioner Oettinger concluded: "Our colleagues in the U.S. Department of the Interior have reaffirmed the value of the long-standing cooperation between offshore regulators in Europe and the USA in securing the transparently highest levels of safety in the offshore oil and gas industry. On Thursday, I will meet with the leaders of the offshore industry in Houston, and I look forward to hearing their views on what more is to be done to reassure people everywhere that the safety lessons of Macondo – and indeed the legacy of Piper Alpha - are truly and visibly embedded wherever our companies operate."

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