Statoil has signed a contract with Allseas for installation of three platform topsides on the Johan Sverdrup field. The vessel will be installing the topsides for the drilling, processing and living quarter platforms.

Allseas will transfer the topsides to Pioneering Spirit (former Pieter Schelte) before they are transported to the Johan Sverdrup field. On the field pioneering spirit will install the topside on the steel jackets.

The drilling platform topsides will be installed in 2018, and the processing and living quarter topsides will follow in 2019.

The vessel has a lifting capacity of 48,000 tons. The heaviest lift will be carried out during installation of the processing platform topside that weighs around 26,000 tons.

After the topsides have been assembled onshore they will be transported offshore for installation. This allows more work related to completion and testing of the topsides to be performed onshore. The number of offshore man-hours will be reduced, which reduces both time and costs.

Constructed in South Korea, "pioneering spirit" is currently being completed in Rotterdam.

This contract award is subject to the Norwegian parliament's approval of the plan for development and operation of the Johan Sverdrup field in 2015.

On 21 February Statoil and its partners started up production from Oseberg Delta 2 in the North Sea. The field's recoverable reserves are estimated at 77 million barrels oil equivalent.

Oseberg Delta 2 is the tenth project in Statoil's fast-track portfolio to be completed.
The field, which is tied back to the Oseberg Field Centre, has been developed using two subsea templates with capacity for a total of eight wells.

The initial phase of the plan initially involves three oil producers and two gas injectors.

"Delta 2 is an important element in extending the lifetime of Oseberg. It provides a good example of how we can make lesser discoveries profitable by using existing infrastructure while it is still available," says Arild Dybvig, vice president for fast-track development projects in Development & Production Norway.

The start-up of the first well is in line with the development plan and takes place 38 months after the discovery became part of the fast-track portfolio.

The total investment is slightly less than NOK 7 billion, well below the estimated investment cost when the project was sanctioned.
"We've delivered yet another high quality, fast-track development according to plan and well within budget," says Torger Rød, senior vice president for subsea projects in Technology, Projects & Drilling.

Oseberg Delta 2 marks a further development on the Delta terrace where oil from two wells on an existing template has been produced since 2008.

"The new development includes gas injection that will give us a substantially greater recovery rate."

"There are also some good opportunities for the further development of the area and an exploration well has already been planned in the southern part of the Delta terrace," says Terje Gunnar Hauge, vice president for operations on Oseberg East.
The plan for development and operation was submitted to the Ministry of Petroleum and Energy on 30 May 2013.
Facts about Oseberg Delta 2
• Decision to commence project development: December 2011
• PDO approved on 10 October 2013
• Location: In North Sea, 14 kilometers south of Oseberg Field Centre
• Volumes: 77 million barrels of oil equivalent (32 mboe oil and 45 mboe gas)
• Depth: Approx. 100 meters, 3,100 meters under seabed
• Estimated lifetime: 20 years
Partners: Statoil (operator) (49.3%), ConocoPhillips (2.4%), Petoro (33.6%) and Total (14.7%)

Key Step in Resolving 2008 Oil and Gas Leasing Offshore Alaska

The Department of the Interior has announced the release of a Final Supplemental Environmental Impact Statement (FSEIS) for Chukchi Sea Lease Sale 193, which moves the Department one step closer to resolving federal court concerns regarding the 2008 oil and gas leases offshore Alaska. The FSEIS updates the Bureau of Ocean Energy Management's (BOEM) estimates of the full range of production levels from offshore oil fields that might be developed in the Chukchi Sea as well as the related potential environmental effects of the lease sale.

"Alaska is a critical component of our nation's energy portfolio, and the Chukchi Sea has substantial oil and gas potential, as well as sensitive marine and coastal resources that Alaska Native communities depend on for subsistence," said Secretary of the Interior Sally Jewell. "The updated analysis is a major step toward resolving the 2008 oil and gas leases that have been tied up in the courts for years. We remain committed to taking a thoughtful and balanced approach to oil and gas leasing and exploration in this unique, sensitive and often challenging environment."

The original Environmental Impact Statement for Lease Sale 193 was published in 2007, and the lease sale was conducted in 2008. Subsequent legal challenges and federal court decisions remanded the sale back to BOEM for further analysis. The most recent decision, from the Ninth Circuit Court of Appeals, was specifically related to the agency's estimates of production levels from offshore oil fields that might be developed in the Chukchi Sea.

The FSEIS is based on the best available data – including actual leasing records and current geological information – to estimate the highest amount of production that could reasonably result from Lease Sale 193. Based upon the findings in the Court of Appeal's decision, as well as a better understanding about existing geologic structures in the region and improved information about where industry operators are likely to focus their development activities, BOEM evaluated a higher exploration and production scenario than in its previous analyses. The FSEIS is being filed consistent with the schedule identified by the courts.

BOEM received more than 400,000 comments in response to the Draft Supplemental Environmental Impact Statement published in November 2014. BOEM held public hearings in Anchorage and Fairbanks, and in the Chukchi Sea communities of Kotzebue, Point Hope, Wainwright and Barrow. The bureau also met with and consulted Alaska Native tribal governments in several of these communities.

"After carefully analyzing the comments, best available science and additional information, BOEM has developed a comprehensive analysis to address the court's concerns," said BOEM Director Abigail Ross Hopper. "We appreciate the input from Alaska Native tribes, federal, state and local partners and the public in developing this updated assessment."

Following the publication of the FSEIS for Lease Sale 193 in the Federal Register, there will be at least a 30-day waiting period before a final decision can be made on the lease sale. In early 2014, the Bureau of Safety and Environmental Enforcement (BSEE) suspended all of the Chukchi Sea leases issued in Lease Sale 193. The suspensions remain in effect until a Record of Decision is issued.

If the lease sale is affirmed, BOEM and BSEE would need to review a company's specific exploration plan, an application for permit to drill and other materials before any exploration activity could occur.

The Final Supplemental EIS is available at: www.boem.gov/ak193/

With submarine pipelines increasing in diameter and extending into deeper waters and more challenging environments, design requirements for concrete weight coating do often not meet current needs. The result is inconsistent safety margins and potentially expensive overdesign and stringent installation requirements. DNV GL has now kicked off the first phase of a joint industry project (JIP) to address these issues and improve the understanding of pipeline concrete behavior. The aim is to develop a design guideline that complements current pipeline codes and standards. The JIP is still open for participants.

Concrete weight coating is widely used to protect submarine pipelines and ensure stability on the seabed. The current design approach for pipeline concrete coating is primarily based on simple and general design requirements. The method has proven reasonably reliable for most traditional pipelines, but does not capture all potential failure modes. In recent times, several cases of concrete coating damage have been observed during installation and operation phases, with varying degrees of severity and potential risk.

The JIP is relevant for pipeline operators, designers, installation contractors and coating contractors. "Many industry players have expressed a wish for a more thorough understanding of the behavior of pipeline concrete weight coating during the installation and operational phases. They expect more specific acceptance criteria, a less conservative approach to the strain in the concrete coating subject to bending and a more accurate estimate of the strain concentration factor at the field joints. These are challenging issues which we want to explore in depth with this joint industry project," says Nguyen Thi Bich Ngoc, JIP Project Manager. "Current participants include Petrobras, Saipem, Bredero Shaw, SVAP and Wasco Coatings, and we still welcome new participants," she adds.

Preliminary studies conducted by DNV GL suggest that in-depth knowledge about the contribution of and interaction among several factors is needed to understand pipeline concrete coating behavior (e.g. the shear transfer capacity, coating thickness, strength, fabrication method, type, location, spacing, percentage steel reinforcement and loads). It is important that these factors are validated against recent test results and combined with knowledge gained from industry experience before being incorporated into pipeline codes and standards.

Richard Harrison, Engineering Manager (Installation Analysis & Sealine Design) in Saipem Ltd, says: "Saipem has continuously upgraded its fleet of pipe-laying vessels and developed new techniques for installing concrete-coated pipelines. Although we have been pushing the boundaries of our knowledge, we have been constrained by the lack of guidance that is available for installing these types of pipelines. Saipem welcomes this initiative and anticipates that such collaboration will directly extend the ability and confidence of the industry to deal with the increasingly challenging pipelines that will need to be designed and installed in the future."

The JIP will lead to a rational design approach based on a quantitative understanding of concrete-coating behavior in response to external loads and the interaction between the important mechanisms and factors that influence this behavior. The first phase of the JIP will develop a design approach for pipeline concrete coating and is due for completion by December 2015. The second phase is for an experimental validation of the design approach and development of a design guideline for pipeline concrete coating. The JIP is expected to be completed by the end of 2016.

In the UK and North Sea alone, around 475 installations will eventually have to be decommissioned and the associated costs for the rest of this decade are expected to average at £1.3billion per year .

Accounting for a potential 40-50% of the cost of decommissioning an asset, well abandonment is an increasingly costly and complex activity to consider. Preparations must start early and in the North Sea, that time is already upon us.

This topic will be a key focus for the Society of Petroleum Engineers (SPE) on Tuesday, 21 April, as the Aberdeen Section hosts the 5th European Well Abandonment Seminar.

A number of major operators, service companies and industry bodies are set to highlight new and existing abandonment techniques and case studies, including Decom North Sea, GE Oil & Gas, Hess and Shell UK.

Ross Lowdon, chairman of SPE Aberdeen, said: "The number of decommissioning projects estimated for the future is the reason behind the rapid growth of the well abandonment sector, and this will only continue to increase.

"The North Sea is home to many leaders in modern well abandonment techniques and this forum is a hugely effective way for the industry to come together, sharing best practice and new technologies. In order to maximise efficiency whilst importantly keeping costs to a minimum and safety as priority, we must learn from the innovations of others."

This seminar will be of interest to anyone involved in, or planning for well abandonment across the drilling, completions, project, well integrity, environmental and commercial personnel disciplines.

Mr Lowdon continued: "I would urge anyone who is, or is likely to become involved in decommissioning to attend this event. We have an excellent programme of speakers who will cover some of the well abandonment industry's most pressing issues, which I am confident will stimulate conversation and collaboration."

New for this year is the pre-conference training day, 'An Overview on Well Abandonment'. This course will be presented by technical experts from Baker Hughes and Helix Well Ops and is a must-attend for anyone looking for an introduction or refresher on this specialist subject.

The pre-conference training day will take place on Monday, 20 April with the full seminar and exhibition following on Tuesday, 21 April. Both events will be hosted at the Aberdeen Exhibition and Conference Centre.

For seminar bookings, exhibition space and sponsorship opportunities, please visit www.spe-uk.org/aberdeen

Decom North Sea (DNS), the representative body for the decommissioning industry, commissions and facilitates projects that deliver meaningful benefits for its members and improves the efficiency of future of decommissioning activities.

This week, DNS has announced a partnership with Zero Waste Scotland (ZWS) and subsea engineering and training firm, Jee Ltd, which will investigate efficient solutions for the recovery of concrete subsea mattresses and re-use, thereby contributing to the circular economy.

The project involves engaging with operators and suppliers across the oil and gas industry, with both DNS and Jee's expert engineers conducting an economic and environmental assessment of the condition of the mattresses, and identifying the best techniques for their recovery.

Nigel Jenkins, CEO of DNS looks forward to this project getting underway: "This project was implemented in direct response to our operator member requests. What to do with mattresses as part of an efficient decommissioning solution is an often discussed "thorny" issue. Leaving them in situ is not ordinarily an option, although we will revisit this. Mattresses were not specifically designed to be removed. Unfortunately, they can degrade underwater over time, leading to a complicated and costly removal process during decommissioning."

Building on previous collaboration with Zero Waste Scotland, DNS has selected Jee, through a competitive tender process, to challenge current thinking and uncover the efficient removal methods that can reduce costs and maximise decommissioning sector benefits from the implementation of circular economy principles. These principles ensure that materials are retained within productive use, in a high value state, for as long as possible – a succinct illustration of DNS' fundamental objective to drive effective and efficient decommissioning activity which will ultimately benefit the oil and gas industry, the environment and the UK tax payer.

Dean Kirby, Senior Engineer at Jee Ltd said: "Millions of pounds are being spent on UKCS decommissioning each year, and this will continue for several decades. As with the majority of decommissioning projects, the recovery and disposal of subsea mattresses presents a significant obstacle and financial burden to operators and contractors globally.

"There is a need for a safe, quick and cost effective system for mattress removal, and at Jee we strive to identify and develop the best solutions for the industry."

Iain Gulland, Chief Executive of Zero Waste Scotland said: "The circular economy is becoming increasingly prominent nationally, because of the economic opportunities and environmental benefits it presents. This ambitious project to recover and re-use deep sea mattresses is a great example of the sort of innovative thinking currently happening in Scotland."

Concrete mattresses provide pipelines, cables and umbilicals with protection from dropped objects, and add weight and stabilisation. Jee's analysis will identify the potential reuse and circular economy applications for the mattresses, as well as highlighting guidance on best practice for recovery and key points for derogation cases to leave in situ.

Project findings will be delivered through an industry report and presentation via DNS later this year.

Conductor Installation Services Ltd (CIS), an Acteon company that provides hammer services to install conductors and drive piles, announced that it successfully completed a conductor installation operation 17 hours ahead of schedule for a leading North Sea oil and gas operator.

Work was carried out on a major gas project in the Southern North Sea. CIS was retained to install six 30-inch conductors on the project to form the foundations of six development wells. In addition, CIS was required to supply cold-cutting services, and all conductor-running, handling equipment, together with drive shoes.

Job safely completed 17 hours early = reduced time & costs
The five-member CIS crew worked with rig contractor Ensco and the operator to commence the first phase of the operation. Working from the jack-up rig Ensco 80, CIS used a 90 kJ hydraulic hammer to drive the first conductor to its target depth on the wellhead platform. Due to issues involving cold cutting placement, it was jointly decided that it would be best to flame-cut the conductor online and carry out the cold cut offline. By doing so, it also made it possible to install the centralizers offline. By adjusting the plan to cold cut offline, 3.5 hours of online time was saved during this initial conductor-driving operation. This practice was then applied for all installation operations required for the five remaining wells. As a result, the job was completed a full 17 hours ahead of schedule. The operator realized significant cost-savings in terms of reduced equipment rental fees, rig time and labor.

With the hammer's ability to drive conductors with pinpoint accuracy, each one was efficiently driven to its target depth. The longest conductor driven measured 400 feet from the rig floor to the conductor toe, ultimately reaching a depth of 157 feet below the mudline of the seafloor.

Communication holds the key
CIS knows the value of good communications, which, proved once again to be the case during this operation. "All parties worked together to achieve the same objective: to install the conductors safely, in the quickest, most effective way possible," said Andy Penman, Group Managing Director of CIS. "To achieve this, we invested a great deal of care and attention to the strategic planning process. I also attribute our success to the experience of our crew and the excellent working relationship we share with this valued client and everyone involved. The fact that our joint efforts resulted in completing 17 hours ahead of schedule without a single LTI is especially satisfying."

Work on the wellhead platform was carried out as the result of a contract awarded to CIS by the operator. Over time, CIS has worked on behalf of this operator numerous times in the Southern North Sea, and looks forward to installing conductors for the foundations of new wells on the next phase of this major development.

The range of services provided by CIS supports the Acteon Group's commitment to defining subsea services across a range of interconnected disciplines.

Industry, government and regulators join the debate at Interspill 2015

The oil and gas industry is set to discuss the importance of maintaining focus on oil spill response across all sectors at the three day Interspill conference and exhibition in Amsterdam from 24 – 26 March.

Rob Cox, technical director at IPIECA and Interspill chairman, believes it is crucial that spill prevention and response remains a high priority even as the many initiatives set up after the 2009/10 offshore incidents are starting to deliver results.

He said: "Significant progress has been made in the aftermath of the Montara and Macondo incidents by the offshore industry but we must not take our eye off the ball; it is vital this work continues. The upstream community is more engaged than ever and legislation is hardening, so we are expecting a lot of debate around articulating the financial impacts of risk to help progress response capability for the offshore sector."

Interspill 2015 brings together industry, academia and government to hear about the latest developments in spill prevention and response. In addition to the conference, the exhibition will showcase the most ground-breaking technologies helping to improve response times and protect the environment. In the biggest exhibition to date, more than 100 exhibitors will demonstrate their latest innovations.

A packed conference program includes sessions on future risk, stakeholder engagement, multi-agency response, emerging technologies, wildlife preparedness and regulation. The opening plenary on current issues and challenges is being chaired by Rob Cox, and includes chairman of host trade association SRGH, Wierd Koops, Brian Sullivan, IPIECA Executive Director, Richard Johnson, Technical Director at ITOPF and Robert Limb, Chief Executive and Director at OSRL.

Other organizations set to present include: ExxonMobil, Shell Exploration & Production, SINTEF, IPIECA, IOGP, IMO, Cedre and SEA Consulting Group.

A first for Interspill is the closing plenary session where members of the International Offshore Petroleum Environmental Regulators Forum (IOPER) will present their principles for offshore oil spill preparedness in an industry-chaired session.

Mr Cox added: "The 1990 Oil Pollution Preparedness, Response and Cooperation Convention tasks industry to work cooperatively with the IMO and its national delegations and the statistics clearly show the success of our joint work with shipping. Now an opportunity exists for us to work together with international regulators to help improve global oil pollution prevention and preparedness in the offshore sector. We anticipate this will be of great interest to operators and the wider industry keen to hear about how the IOPER principles could drive regional and local regulation in practice."

Under the theme of 'working together' the conference aims to not only reflect on past events, but consider the likely future issues for oil and chemical spill prevention, response and restoration.

In addition to the conference programme, spill industry seminars and scientific workshops are being held on the exhibition floor and are free to attend.

The spill industry seminars feature presentations from leading manufacturers and other organisations, highlighting the latest developments.

The science workshops, led by Cedre will include sessions on dispersant breakthroughs, bioremediation, HNS pollution and spill impact assessment. In particular, the workshop on dispersant breakthroughs will take place on Tuesday at 1.30pm and focuses on chemical dispersion of oil in arctic areas, deep sea and tropical regions. Presenters include Tom Coolbaugh, distinguished scientific associate at ExxonMobil, Per Daling, senior research scientist at SINTEF and Francois Merlin, former head of R&D at Cedre.

The well-established program of educational short courses on a variety of spill related topics will run at the venue on Monday 23 March, the day before the conference opening.

Interspill 2015 takes place at Amsterdam RAI Convention Centre. The last event in 2012 in London attracted over 1,300 delegates, visitors and exhibitors from over 70 countries.

Statoil, on behalf of the Johan Sverdrup partnership, will sign a contract with Aibel for the construction of the deck for the drilling platform on the field. The contract is worth in excess of NOK 8 billion.

The contract includes engineering work, procurement and construction (EPC) of the drilling platform deck. Engineering design will be undertaken at Aibel's office in Asker outside Oslo

The platform deck will be built at the Aibel's yard in Thailand and Haugesund, and at Nymo's yard in Grimstad.

Assembly and mechanical completion of the deck will be carried out at the Aibel's yard in Haugesund with delivery in 2018. Installation on the field is planned for the same year.

"The Johan Sverdrup field is one of the biggest discoveries on the Norwegian continental shelf that will, for its entire lifetime, be a pillar for Norwegian industry and value creation for the Norwegian society. On behalf of the partnership we are looking forward to a close cooperation with Aibel in order to ensure a safe and efficient delivery of this project," says Statoil's Arne Sigve Nylund, executive vice president of Development & Production Norway.

"Targeted efforts have been made to reduce cost and ensure a cost-efficient delivery and execution. We are therefore pleased to see that Norwegian suppliers have regained their competitiveness. The drilling platform is one of four platforms in the planned field centre and it is a complex and challenging project in itself. In order to succeed we are dependent on competent suppliers at all stages, and Aibel has been awarded this contract in a very competitive market," says Margareth Øvrum, executive vice president for Technology, Projects & Drilling Statoil.

Investment costs for full field development are estimated to be in the region of NOK 170-220 billion (2015 value) with recoverable resources of between 1.7 and 3.0 billion barrels oil equivalent.

Johan Sverdrup's first phase development involves four installations including an accommodation a drilling, a riser and process platform, as well as three seabed templates for water injection. The platforms will be connected by walkways.
The ambition is a recovery of 70%. At plateau production the field will account for roughly 40% of the total oil production on the Norwegian continental shelf. Start-up is planned for late 2019.

The Johan Sverdrup partnership consists of Statoil, Lundin Norway, Petoro, Det norske oljeselskap and Maersk Oil. The partnership has recommended Statoil as operator for all the field's phases.
The award of this contract is subject to approval of the Plan for Development and Operation in 2015 by the Norwegian Parliament.

The reserve replacement ratio was 146%. For each barrel produced, the company added 1.46 barrels to its reserves.



Ecopetrol's reserves/production ratio increased to 8.6 years.

-- Of the outstanding total balance, 70.3% is crude and 29.7% is natural gas.



Since 2010, Ecopetrol has increased its reserves by 22%.

Ecopetrol (BVC: ECOPETROL; NYSE: EC; TSX: ECP) announces its proven reserves (1P, according to the international designation) of crude oil, condensate and natural gas owned by the company, including its interest in affiliates and subsidiaries, as of December 31, 2014.

Reserves were calculated based on U.S. Securities and Exchange Commission (SEC) standards and methodology, and 99% were audited by two different independent reserve engineering firms (Ryder Scott Company and DeGolyer and MacNaughton).

Proven net hydrocarbon reserves owned by Ecopetrol, including its interest in affiliates and subsidiaries, as of December 2014, were 2,084 million barrels of oil equivalent (mmboe), a 5.7% increase compared to 1,972 mmboe in 2013.

In 2014, Ecopetrol added 355 mmboe to its proven reserves, an increase over the 340 mmboe reported in 2013. Production for the year 2014 was 243 mmboe.

The reserve replacement ratio in 2014 was 146%, up from the 139% reported in 2013.. The reserves/production ratio increased to 8.6 years.

The increase in proven reserves is mainly the product of revisions at existing fields, and increased gas reserves.
94% of our proven reserves as of December 2014 (2,084 mmboe), comes from Ecopetrol S.A., while Hocol, Ecopetrol America and the participation in Equion and Savia Peru, contribute with 6%.

During the last 5 years, Ecopetrol increased its net reserves by 22% and achieved an average reserve replacement ratio of 150%.
Reserves as of December 31 of 2014:

Maersk Drilling's third XL Enhanced ultra harsh environment jack-up was named last week at a ceremony held at the Keppel FELS shipyard in Singapore. Mrs. Margareth Øvrum, Executive Vice President in Statoil, honored Maersk Drilling by naming the rig Maersk Integrator.

Maersk Integrator is the third in a series of four ultra harsh environment jack-up rigs to enter Maersk Drilling's rig fleet. The four jack-up rigs represent a total investment of USD 2.6 billion. The first three jack-up rigs, including Maersk Intregrator, has now all been delivered from the Keppel FELS shipyard. The fourth will be delivered from the Daewoo Shipbuilding and Marine Engineering (DSME) shipyard in South Korea in 2016.

After delivery from the yard, Maersk Intregator will mobilize to the North Sea and commence a four year firm contract with Statoil for drilling on the Gina Krog field in the Norwegian North Sea. The estimated contract value for the firm contract is USD 620 million.

"With the addition of Maersk Integrator to our fleet, we continue to develop our market leading position in the challenging Norwegian market. With Maersk Integrator we now have three of the world's largest, ultra-harsh environment jack-up rigs in our fleet, enabling us to provide safe and efficient drilling operations to our customers in the Norwegian market ," says Claus V. Hemmingsen, CEO of Maersk Drilling and member of the Executive Board of the Maersk Group, and continues:

"The early delivery and good performance is one of the reasons we continually partner with Keppel FELS. Throughout the construction period of the three XLE's, they have been able to consistently provide value-added services while delivering products of the highest technical abilities to our satisfaction"

Final Notice of Sale for Central Gulf of Mexico Planning Area

As part of the Obama Administration's all-of-the-above energy strategy to continue to expand safe and responsible domestic energy production, Secretary of the Interior Sally Jewell and Bureau of Ocean Energy Management (BOEM) Director Abigail Ross Hopper have announced that Interior will offer 41.2 million acres for oil and gas exploration and development in the Gulf of Mexico in a March lease sale.

"This lease sale underscores the President's commitment to create jobs through the safe and responsible exploration and development of the Nation's domestic energy resources," said Hopper. "As one of the most productive basins in the world, the Gulf of Mexico is an important part of the Administration's energy strategy."

Photo: Courtesy of BOEM

Lease Sale 235 in the Central Planning Area will be held in New Orleans, Louisiana, on March 18, 2015. The sale will be the seventh offshore auction under the Administration's Outer Continental Shelf Oil and Gas Leasing Program for 2012-2017 (Five Year Program), which makes all areas with the highest-known resource potential available for oil and gas leasing in order to further reduce America's dependence on foreign oil. The lease sale builds on the first six sales in the Five Year Program that offered more than 60 million acres for development and garnered $2.4 billion in high bids.

The Gulf of Mexico contributes about 18 percent of U.S. domestic oil and 5 percent of domestic gas production, providing the bulk of the $13.5 billion in mineral revenue disbursed to Federal, state and American Indian accounts from onshore and offshore energy revenue collections in Fiscal Year 2014.

"As a critical component of the Nation's energy portfolio, the Gulf holds vital energy resources that can continue to generate jobs and spur economic opportunities for Gulf producing states, as well as further reduce the Nation's dependence on foreign oil," said Hopper.

Sale 235 encompasses 7,788 unleased blocks, covering about 41.2 million acres, located from three to 230 nautical miles offshore Louisiana, Mississippi, and Alabama, in water depths ranging from 9 to more than 11,115 feet (3 to 3,400 meters). BOEM estimates the proposed sale could result in the production of approximately 1 billion barrels of oil and 4 trillion cubic feet of natural gas.

The decision to hold this sale follows extensive environmental analysis, public comment and consideration of the best scientific information available. The terms of the sale include stipulations to protect biologically sensitive resources, mitigate potential adverse effects on protected species and avoid potential conflicts associated with oil and gas development in the region.

All terms and conditions for Lease Sale 235 are detailed in the Final Notice of Sale that can be viewed today in the Federal Register and are fully explained on the BOEM website at http://www.boem.gov/Sale-235/.

The sale package as well as printed copies of the maps can be requested from the Gulf of Mexico Region's Public Information Office at 1201 Elmwood Park Boulevard, New Orleans, LA 70123, or at 800-200-GULF (4853).

Aker Solutions delivered the key subsea component for the system being developed by Marine Well Containment Company to limit environmental risks from oil and gas production in the U.S. Gulf of Mexico.

The Subsea Containment Assembly, or SCA, is designed to contain a well-control incident by connecting and creating a seal to prevent oil leaks. It can also be used in a cap-and-flow plan to direct fluid to vessels on the surface. The technology works under pressures as high as 15,000 psi.

The equipment was delivered to Marine Well Containment Company's team in Ingleside, Texas. It weighs 170 tons and consists of a stack of adapters and connectors assembled on a steel base. Aker Solutions developed the technology over three years, involving designers and engineers at the company's hub in Houston.

"This has been a collaborative effort involving ten oil companies and is a great example of how the offshore industry can pull together," said Alan Brunnen, head of Aker Solutions' subsea business. "Aker Solutions is pleased to have contributed its unique knowledge and experience in high-pressure subsea technology."

By Dave Waddington
Global Market Leader for Offshore Production
GE Power Conversion 

The question: as oil and gas exploration and production moves into deeper and more hazardous environments, what role do suppliers play in ensuring these areas can be exploited efficiently, safely and cost effectively?

The answer: Integration. Making sure that the way we work is evolving in parallel to technology matching the efforts and resources required to make our offshore oil & gas customers successful. Greater localization and partnerships coupled with a greater focus on regional roles and responsibilities are just a few of the practices that are changing the way the industry works. In GE, we are taking a one-stop shop approach to provide an integrated solution to customers.

Integration of technology

Take the power system as an example: the three main pillars (power generation, power compression and power distribution) are currently dealt with by different contractors, each providing their own expertise to a single piece of the jigsaw puzzle. The intertwined nature of this work gives rise to a hugely expensive and complex process of coordination, which in turn creates financial risk should project delays be encountered. With the rising ambitions of new oil and gas exploration sites, it seems that the stakes are only set to get higher.

Looking at some of the long-term projects on the horizon within the context of an integrated approach, we see that integrated components will drive the initial capital cost down while system optimization safeguards availability and uptime of the operation, helping shipyards and owners to save both time and money. Simply put, dealing with one single source of supplier facilitates the procedure, the process and potentially leads to simpler and faster system integration, therefore a quicker delivery with lower risk.

In an industry where downtime can cost over a million dollars a day, a reliable and efficient power solution coupled with an integrated approach has the potential to save companies tremendous amount of money. That is exactly why at GE we have solved this problem for our customers by taking an integrated approach – the latest launch of GE Marine is the best proof to show our strong commitment to this approach.

The rules of the game are already beginning to change. Yesterday's solutions aren't going to answer tomorrow's challenges. Today, contractors increasingly approach suppliers as strategic partners invested in their success, not only bringing critical components to a project but also key project management skills. It's becoming crystal clear that the companies with the brightest prospects will be those capable of offering a one-stop shop for both.

Multi-user, deep-water extension to service subsea projects and decommissioning

Plans for significant further expansion of Lerwick Harbour's extensive deep-water facilities for the offshore oil and gas industry have advanced with the award of a major contract to extend the quay at Dales Voe South to support subsea developments and decommissioning.

Lerwick Port Authority has commissioned the Scottish business unit of civil engineering contractor BAM Nuttall as main contractor for an £11.95 million investment to lengthen the quay to 130 metres. Part of the Dutch construction group Royal BAM, BAM Nuttall specializes in complex marine construction, with a strong track record working around Scotland and on the Western and Northern Isles.

Lerwick has been servicing the offshore industry for over 50 years and now also has an established reputation as a location for decommissioning. The extended quay will provide deep-water, versatile berthing and heavy load capacity to take an offshore structure in a single lift, with a substantial, expanded laydown area.

Captain Calum Grains, Port Authority Deputy Chief Executive and Harbourmaster, said: "The contract marks an important step in further developing Lerwick's role as a leading centre of offshore industry operations. Dales Voe South is another value-added expansion and reflects our confidence in future activity, including ongoing subsea projects, particularly west of Shetland, and the developing decommissioning and offshore renewable markets."

As previously announced, the Scottish Government and agency, Highlands and Islands Enterprise, are providing £2.39 million in grant for the project, with Bank of Scotland supporting the Port Authority's investment.

Work will begin in April, with completion due in April 2016. At peak, BAM expects up to 40 people to be employed directly in the construction of the new facility, with wider benefits spreading to local suppliers and subcontractors.

Commenting on the contract award, BAM Nuttall's Business Unit Manager for Scotland, Dougie Grant said: 'We've been tracking the proposals for Dales Voe for over a year now and we're delighted to have been chosen by the Port Authority as their construction partner. We understand the positive impact this scale of investment can have locally and we look forward to engaging proactively with the Shetland community to ensure this benefit is fully realised."

Civil Engineers, Arch Henderson LLP, is responsible for design and project management of one of the largest infrastructure developments in recent years in the Port Authority's on-going program.

The contract will extend the quay by around 75 meters, with a load-bearing capacity of 60 tons per square meter, making it unique in Scotland. It will have 12.5 meters water depth alongside, like the existing quay, amongst the deepest of its type in Scotland. The sheltered voe, located between oil basins east and west Shetland, has 24-hour access to the North Sea.

The extension will be complemented by increased, adjacent laydown for equipment and materials. A phased expansion underway in recent years will total 45,000 square meters by 2016.

The offshore oil and natural gas leasing program proposed by the Obama administration puts America's energy competitiveness at risk, API President and CEO Jack Gerard told reporters as the government kicked off a series of public meetings on the proposal around the country.

"America has a chance to be the world leader in energy now and for decades to come," said Gerard. "But the opportunity could slip through our fingers if the government keeps 87 percent of offshore waters closed to oil and natural gas leasing.

"Studies show we could create 840,000 new jobs and raise more than $200 billion for the government if oil and natural gas development is allowed in the Atlantic, Pacific and Eastern Gulf of Mexico.

"By ignoring major energy-rich areas, the administration is turning its back on American workers. In the Atlantic, the government proposed just one lease sale for the next five-year cycle. Secretary Jewell was quick to say even that may be canceled. Exploration and production in Alaska is also being restricted both on and offshore.

"This is America's energy moment. But the moment will pass unless our government leaders allow more exploration and production of our abundant oil and natural gas resources.

"Consumer benefits are being driven by increased domestic production. To keep these benefits in the future, we must plan for the long-term today.

"Let's seize the opportunity in front of us and secure America's position as the world leader in energy and job creation."

API represents all segments of America's oil and natural gas industry. Its more than 625 members produce, process, and distribute most of the nation's energy. The industry also supports 9.8 million U.S. jobs and 8 percent of the U.S. economy.