OS_20070201_Feb_2007

February 2007

Sea oor seismic LNG ports New deck lifting technique Subsea well intervention

Houston London Paris Stavanger Aberdeen Singapore Moscow Baku Perth Rio de Janeiro Lagos Luanda

World Trends and Technology for Offshore Oil and Gas Operations

West Africa E&P West Africa E&P spending to hit spending to hit $13 billion by 2010$13 billion by 2010

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Africa

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Totals Dalia eldTotals Dalia elddelivers rst oildelivers rst oil

New Africa New Africa frontiers frontiers hold promisehold promise

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____________________

Offshore drilling requires a strategy, especially intodays environment where the wrong move can bemore costly than ever. Thats why the first moveshould be to look for a company with worldwidecapability and experience. And thats Transocean Inc.

Transocean has more experience drilling deepwa-ter and harsh-environment wells than anyone. Wealso have the largest and most diverse fleet in theworld, so we can deliver exactly the rig our customersneed when and where they need it. And we operatein every major oil and gas area, so we can save onmobilization and demobilization costs worldwide.

Put them all together and you can see why more and more customers have learned that the right move is frequently the easiest move. Thats why they call Transocean.

Transocean: Were never out of our depth.

www.deepwater.com




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Offshore (ISSN 0030-0608) is published monthly by PennWell, 1421 S. Sheridan Road, Tulsa, OK 74112. Periodicals class postage paid at Tulsa, OK, and additional offi ces. Copyright 2007 by PennWell. (Registered in U.S. Patent Trademark Offi ce.) All rights reserved. Permission, however, is granted for libraries and others registered with the Copyright Clearance Center, Inc. (CCC), 222 Rosewood Drive, Danvers, MA 01923, Phone (508) 750-8400, Fax (508) 750-4744 to photocopy articles for a base fee of $1 per copy of the article plus 35 per page. Payment should be sent directly to the CCC. Requests for bulk orders should be addressed to the Editor. Subscription prices: US $ 75.00 per year, Canada/Mexico $ 99.00 per year, All other coun-tries $125.00 per year (Airmail delivery: $175.00). Worldwide digital subscriptions: $75 per year. Single copy sales: US $6.50 per issue, Canada/Mexico $8.50 per issue, All other countries $10.50 per issue. Return Undeliverable Canadian Addresses to: P.O. Box 122, Niagara Falls, ON L2E 6S4. Back issues are available upon request. POSTMASTER send form 3579 to Offshore, P.O. Box 3200, Northbrook, IL 60065-3200.

International EditionVolume 67, Number 2

February 2007

C O N T E N T S

DRILLING & COMPLETIONCombining expandable sand screens with propped hydraulic fracturing technology in the Egret eld, Brunei ........................................ 60Brunei Shell Petroleum (BSP) and Halliburton Energy Services applied a combination of expandable sand screens (ESS) and hydraulic fracturing during the completion of two wells in the Egret eld, Brunei. The result was effective sand control with completion exibility and improved productivity.

Challenges to drilling subsea, high angle HP/HT wells ............................................. 64Statoil confronted challenges in drilling subsea, high angle HP/HT wells in the Kristin eld off-shore Norway. The challenges included equivalent circulating density (ECD) management, hole stability, formation damage, weight material sag, and operating on subsea HP/HT wells during harsh winter conditions.

PRODUCTIONManaging deepwater intervention vessels offshore Angola can save costs ........... 68An analysis of the future demands for vessels in deepwater off Angola by petroleum operators shows where opex costs could be saved. The analysis formulated a technical de nition of inter-vention - required for speci c tasks, and forecasted the overall demand for each of these units.

Subsea well intervention expected to grow .............................................................. 73The recent combination of higher oil prices and the large number of newbuild subsea support vessels entering the marketplace is a catalyst for growth in the rigless well intervention market. The subsea well intervention market is being driven, in part, by the obligation of operators to abandon redundant subsea wells in the UK sector of the North Sea.

SUBSEARaw water injection rst for Columba E expansion scheme ...... 74The worlds rst subsea raw seawater injection system will shortly enter service in the UK northern North Sea. CNR International opted for a seabed pumping station as the most logi-cal water ood solution for its Columba E eld.

Demanding Lobito/Tomboco subsea installation schedule ............. 78Chevrons subsea development of the Lobito and Tomboco elds offshore Angola met its start-up plan despite a compressed schedule and dif cult logistics. The Benguela, Belize, Lobito, and Tomboco elds are in block 14, about 80 km (50 mi) off the Angolan coast, in up to 396 m (1,300 ft) of water.

TOP 10 DRILLING CONTRACTORSRig utilization stands at 100% around the globe .................. 38The offshore rig market experienced a year of highs in 2006, and the trend is not expected to stop in 2007. Rig demand is stronger than ever. Rig owners are struggling to meet customers demands, and many operators face dif culty meeting their drilling goals around the world.

Celebrating Over 50 Years of Trends, Tools, and Technology

West AfricaTotal brings onstream second deepwater hub in Angolas proli c block 17 ........... 44Late last year, oil started owing from Totals second production center in Angolas block 17. Dalia, like its fore-runner Girassol, is being developed via one of the worlds largest FPSOs linked to an extensive network of deepwater subsea wells.

The other Africa ............................... 52With industry focus on the established players and the big plays offshore West Africa, much of the regions nascent activity has been overlooked. The new prospects could well be as promis-ing as some of the giants now moving into production, but because they are overshadowed by the mammoth devel-opments, few are aware that new areas are being explored.

West Africa operations venture into new depths ............................... 56West Africa will lead the world in operations spending, reaching $13 billion by 2010, say Douglas-Westwood analysts. The increasing demand for oil and gas in new areas of the world has brought with it a tremendous upswing in E&P activity that is re ected in the amount of money going to West Africa. 78



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CONSTRUCTION & INSTALLATIONExisting platforms raised to increase storm clearance ............................................ 82A Devon Energy operated platform with 44 people on board in the Eugene Island 330 eld of the Gulf of Mexico successfully was raised 4.25 m (14 ft) by 32 synchronously controlled hydraulic cylinders. The eight-leg platform, Eugene Island 330C, in 76 m (250 ft) of water originally was installed in the early 1970s.

Polyester ropes can meet design criteria to extend MODU mooring capability ....... 86In the mid 1990s, Shell (US) was challenged to drill prospects in water depths nearly twice the water depth ratings of the rigs under contract. At the same time, the need to eliminate the risk of drive-off or drift-off, and the ability to disconnect in an emergency drilling riser disconnect without signi cant capex or opex increases to accommodate storms became a challenge.

TRANSPORTATION & LOGISTICSIncreasing demand for natural gas, amended legislation drive US LNG port applications ................... 92With demand for natural gas forecast to outpace supply through 2020, regulatory legislation has been modi ed to allow the construction of deepwater ports to facilitate LNG imports for domestic consumption. LNG imports to the US will continue to increase to meet the countrys growing need for natural gas.

US export control laws ....................... 98A relatively small percentage of US businesses are aware of the extensive and very serious laws and regulations that apply to exports from the US. These laws and regulations apply to items leaving the US regardless of destination country or means of transportation.

*Mark of Schlumberger 2007 Schlumberger. 07-WT-007Photograph of the Discoverer Enterprise courtesy of Transocean.

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International EditionVolume 67, Number 2February 2007

COVER: On Dec. 13, 2006, oil started owing from Totals second production center, Dalia, in Angolas block 17. The 1-Bbbl oil eld is being developed via one of the worlds largest FPSOs linked to an extensive network of deepwater subsea wells. The 300-m (984-ft) long, 63-m (207-ft) wide, 32-m (105-ft) high FPSO is equipped to handle up to an average of 240,000 b/d of oil, 400,000 b/d of total liquids, oil storage capacity of 2 MMbbl, and gas compression capacity of up to 8 MMcm/d.

92



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8 Offshore February 2007 www.offshore-mag.com

GEOLOGY & GEOPHYSICSSea oor seismic acquisition coming of age ........................................................... 102Ocean-bottom cable (OBC) seismic data acquisition is coming of age rapidly. Two things in particular are feeding this maturation. One is the interest in the advantage of wide-azimuth/rich azimuth surveys, and the other is the interest in seeing deeper into the target such as for subsalt imaging.

EQUIPMENT & ENGINEERINGPolymer can have advantages over steel in deviated wells ................................... 108The offshore market is becoming increasingly aware of the bene ts that polymer products offer in some instances, says Serena Arif, director of PolyOil. The primary bene t is in terms of signi cant friction reduction (found to be a minimum of 22% in the eld).

Devin introduces dual compensating intervention tower ....................................... 110Devin International has introduced a modular motion-compensation tower that adapts to any type of vessel, platform, or rig that is experiencing motion during the well intervention stage. It can move in two directions on its vertical axis.

Flotation Technologies develops new buoyancy module ........................................ 110Flotation Technologies Inc. has developed a new buoyancy module for Cameron to use on Chevrons Tahiti eld. The Straked Buoyancy Module provides vortex-induced vibrations (VIV) suppression strakes.

Bardex delivers deepwater mooring system ........................................................... 110Bardex Corp. has delivered a linear chain jack mooring system for a oating production facility designed for 1,300 m (4,625 ft) of water and installed offshore East Malaysia. The mooring system consists of 10 linear chain jack assemblies and 10 deck-mounted turndown sheave as-semblies.

Askco develops offshore solids monitoring instrument ......................................... 112Askco Instrument Worldwide Solutions has developed an instrument, Sandbox, which monitors solids during offshore operations by using direct, online ltration techniques. The unit provides a well owline monitoring program that samples uids and lters solids as small as 10 microns.

BEYOND THE HORIZONPetroleum resources as the major driving force in the Arctic ................................ 128On the rst of December last year, the Norwegian government presented its strategy for the High North. Meeting the challenges and opportunities in this area is its main priority. One third of mainland Norway lies north of the Arctic Circle, and Norway has the responsibility for manag-ing resources in waters six times the size of its mainland territory.

D E P A R T M E N T S

Comment ............................................. 10Data ..................................................... 12Global E&P .......................................... 14Offshore Europe .................................. 20Gulf of Mexico ..................................... 22Subsea/Surface Systems ................... 26

Vessels ................................................ 32Drilling & Production .......................... 34Geosciences ........................................ 36Business Briefs ................................. 114Advertisers Index ............................. 127

International EditionVolume 67, Number 2February 2007

Correction: The caption with the photo on page 38 in the December issue is incor-rect. Please see the correct caption with the photo on page 116.

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______________________

West Africa: now and the futureAs part of our special report on West Africa in this months issue, our editors looked

at whats happening now and what might happen in the near future. For example, late last year, oil started owing from Totals second production center

in Angolas block 17. Dalia, like its forerunner Girassol, is being developed via one of the worlds largest FPSOs linked to an extensive network of deepwater subsea wells.

There the similarities end, however, as Jeremy Beckman, Editor-Europe, points out in his report on Dalia in this months issue.

Dalias shallower subsurface location presented greater dif culties in well design, due to the need for a steeper drilling radius, and the elds extent would require twice as many wells to develop. Also, its Miocene crude is much heavier than Girassols Oligocene oil, and cooler on out- ow. Total came up with solutions for these and other challenges, as Beckman describes in his report on the eld development, beginning on page 44.

But with industry focus on the established players and the big plays offshore West Africa, much of the regions nascent activity has been overlooked. Because the newer frontier areas are overshadowed by the mammoth developments, few in the industry are aware that new areas are being explored. Some of the newest plays are on Africas east coast, which, for the most part, has seen very little drilling. The most inter-esting activity is offshore Kenya, Tanzania, and Mozambique. The new prospects could well be as promising as some of the giants now moving into production, as International Editor Judy Maksoud discusses in her analysis of The other Africa, beginning on page 52.

Top 10 offshore drillersThis years list of top 10 drilling contractors (by eet size) is headed once again by

Transocean, followed by GlobalSantaFe and Noble. No surprise there. And theres no surprise in the supply-demand picture, as rig utilization is virtually 100%.

The offshore rig market, as analyzed for Offshore by Justin Smith of ODS-Petrodata, experienced a year of highs in 2006, and the trend is not expected to stop in 2007. Nearly all rigs that can work are working.

Day rates have set records in 2006, and 2007 likely will see rates push even higher in some market segments. Operators and rig owners alike have reported record pro ts, and as a result, overall operator spending will increase this year. Although commodity prices faltered somewhat recently, operators and rig owners continued to post record pro ts, and the good times should continue for some time to come. Read the full report on page 38.

Sea oor seismic coming of ageOcean-bottom cable (OBC) seismic data acquisition is coming of age

rapidly. Two things in particular are feeding this maturation. One is the interest in the advantage of wide-azimuth/rich azimuth surveys, and the other is the interest in seeing deeper into the target, such as for subsalt imaging. Along with these have come advances in cable con-nections and in understanding of how OBC systems operate. Current circumstances from an operations viewpoint have contributed, too. The worldwide demand for vessels and the resulting run-up in day rates has bene ted OBC because the method can eliminate the need for a recording vessel. Tech-nology Editor Gene Kliewer takes a look at how sea oor seismic is coming of age in his analysis beginning on page 102.


To respond to articles in Offshore, or to offer articles for publication, contact the editor by email ([email protected]) or fax (1-713-963-6296).

C O M M E N T Eldon Ball Houston

PennWell1700 West Loop South, Suite 1000, Houston, TX 77027 U.S.A.

Tel: (01) 713 621-9720 Fax: (01) 713 963-6296

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EDITORIAL ADVISORY BOARDLuke R. Corbett, Kerr-McGee Corp.

David J. Greer, Shell International E&PJack B. Moore, Cooper Cameron Corp.

Hugh ODonnell, Saipem Bruce Crager, INTEC Engineering

James K. Wicklund, Banc of America Securities

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Offshore ISSN-0030-0608Printed in the U.S.A. GST No. 126813153

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CONTRIBUTING EDITORSNick Terdre (Norway)

David Shields (Mexico)Peter Howard Wertheim (Brazil)

Gurdip Singh (Singapore)

EDITOR-IN-CHIEFEldon R. Ball

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TECHNOLOGY EDITORGene Kliewer

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MANAGING EDITORDavid Paganie

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DRILLING & PRODUCTION EDITORFrank Hartley

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PRESENTATION EDITORJosh Troutman

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Beckman

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G L O B A L D ATA

GoM drilling permits issued

Dri

lling

per

mits

100

90

80

70

60

50

40

30

20

10

0July

67

Dec.

66

Aug.

68

Sept.

55

Oct.

50

Nov.

53

June

83

Source: US Minerals Management Service

US GoM 40 (+1)90 (+1)

FloatersJackups

North Sea 41 (+1)34 (0)

East Atlantic

Mex GoM6 (0)30 (0) S. Asia

7 (0)28 (+1)

SE Asia 21 (0)34 (0)

Far East 3 (0)

16 (0)

M. East 3 (+1)94 (+1) W. Africa

28 (+1)25 (0)

L. America 29 (-1)15 (0)

Source: Rigzone.com

2 (-1)1 (0)

Active rig eet, January 2007

This month Infi eld Systems Ltd. (ISL) looks at the global subsea mar-ket, not just trees, but also manifolds, pipeline end manifolds (PLEMs), templates, wells (satellite & templated), subsea compression, and separation systems. Europe and North America are expected to witness a signifi cant drop in their share of subsea completion related capital expenditure (capex) over the 2007-2011 period, as subsea activities and associated capex across the rest of the world are expected to take an increasing share of the annual forecast total global capex.

When comparing the subsea completion project numbers across the periods 2001-2006 and 2007-2011, a 112% global rise is forecast. Latin America is predicted to account for the highest percentage rise followed by Asia, Africa, Europe, North America, Australasia, and the Middle East & Caspian region.

However, in capex terms, a 116% rise is expected globally across the two fi ve-year periods of comparison. With global subsea capex forecast to increase in the 2007-2011 period, the regions forecast to witness the largest share of this rise are the Middle East & Caspian fol-lowed by Asia, Australasia, Africa and Latin America, with North Amer-ica and Europe taking a progressively smaller percentage share of the global market.

Ojus Palathingal, Research Analyst Dr. Roger Knight, Editor & Data Manager

20020%

20%

40%

60%

80%

100%

2003 2004 2005 2006Year of spend

Per

cent

of a

nnua

l glo

bal s

ubse

aco

mpl

etio

ns c

apex

Europe

North America

RoW

2007 2008 2009 2010 2011

Source: Ineld Systems Ltd.


Europe, North America and Rest of World (RoW) Subsea Completions Capex 2002-2011

Gulf of Mexico day rates

Month/Year Minimum Average MaximumDrillshipJan 2006 $182,000 $213,026 $289,900Feb 2006 $182,000 $222,175 $289,900Mar 2006 $182,000 $229,617 $289,900April 2006 $0 $216,401 $289,900May 2006 $182,000 $233,650 $289,900June 2006 $182,000 $234,139 $289,900July 2006 $182,000 $234,483 $289,900Aug 2006 $182,000 $234,513 $289,900Sept 2006 $182,000 $239,399 $295,200Oct 2006 $190,900 $243,600 $295,200Nov 2006 $190,900 $243,582 $295,200Dec 2006 $190,900 $243,312 $295,200JackupJan 2006 $40,000 $88,730 $165,000Feb 2006 $40,000 $96,734 $165,000Mar 2006 $52,000 $104,095 $170,000April 2006 $52,000 $112,531 $170,000May 2006 $52,000 $117,137 $195,000June 2006 $65,000 $118,373 $195,000July 2006 $65,000 $117,830 $195,000Aug 2006 $65,000 $118,113 $185,000Sept 2006 $65,000 $114,252 $185,000Oct 2006 $0 $111,298 $175,000Nov 2006 $0 $109,087 $185,000Dec 2006 $0 $104,376 $185,000Semi Jan 2006 $62,000 $173,388 $325,000Feb 2006 $82,000 $191,358 $400,000Mar 2006 $95,000 $197,599 $400,000April 2006 $62,000 $202,968 $400,000May 2005 $62,000 $206,706 $400,000June 2006 $0 $205,178 $400,000July 2006 $0 $205,419 $385,500Aug 2006 $0 $222,278 $385,500Sept 2006 $0 $223,483 $385,500Oct 2006 $95,000 $241,484 $385,500Nov 2006 $102,000 $243,823 $385,500Dec 2006 $102,000 $247,670 $425,000Source: Rigzone.com * Undergoing hurricane repairs.



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AfricaAngola is in the West Africa limelight again

with the recent ultra deepwater discovery an-nounced by Sonangol and Total E&P Angola. Salsa-1, the sixth exploration well on block 32 was drilled in 1,806 m (5,925 ft) water depth and tested at a rate of 3,686 b/d of oil from a Miocene reservoir. The discovery is in the southeastern part of block 32, 15 km (9 mi) southwest of the Mostarda-1 discovery.

Technical studies are being carried out to evaluate the results of the tests. Further exploration drilling is under way, and more is planned across the block.

Sonangol holds the concession rights for block 32. The contractor group is formed by Total, which operates block 32 with 30% in-terest, Marathon Oil Co. with 30% interest, Sonangol E.P. with 20% interest, Esso Explo-ration and Production Angola (Overseas) Ltd. with 15% interest, and Petrogal with the remaining 5%.

Production from Africas offshore is up

slightly as a result of Hess Corp. and its partners, Tullow Oil and GEPetrol, bringing onstream the Okume complex off the coast of Equatorial Guinea.

First oil was achieved on Dec. 14, 2006, at the Okume B platform. According to Hess, production will grow during 2007 as in eld drilling progresses, eventually bringing output to 60,000 b/d peak oil production in 2008.

Construction of the Okume facilities began in August 2004 following approval of the plan of development by the Republic of Equatorial Guinea.

The Okume complex, 241 km (150 mi) south of Bioko Island in the Gulf of Guinea, has two tension leg platforms, three satellite

platforms, and a central processing platform. These facilities provide for full eld pressure maintenance and arti cial lift capability. The Okume complex central processing facilities are tied back to the Sendje Ceiba FPSO.

Hess operates the Okume Complex with 85% working interest.

Asia-Paci cChina National Offshore Oil Corp. Ltd. is

on the move to increase domestic produc-tion. In fact, the company reportedly plans to bring 16 new projects onstream this year, and plans are in place to pursue as many as 60 onshore and offshore projects in the me-dium term.

Not surprisingly, CNOOCs focus will be deepwater exploration for oil and gas in the South China Sea, which is already an active area.

Late last year, CNOOC Ltd. and partner Eni made discovery Huizhou (HZ) 25-4 in the eastern South China Sea. Discovery well HZ25-4-1 in block 16/19 in the Pearl River Mouth basin is 180 km (112 mi) southeast of Hong Kong.

The well was drilled to a TD of >3,900 m (12,795 ft) in 102 m (335 ft) water depth. A drillstem test showed a production level of 5,000 b/d of oil.

According to the production-sharing con-tract, the company has the right to acquire up to 51% working interest in any commer-cial discoveries in the block.

At about the same time as the Huizhou discovery, CNOOC signed two production sharing contracts with Devon Energy Corp. for deepwater blocks 64/18 and 53/30.

Block 64/18, in the Qiong Dong Nan ba-sin in the western South China Sea, covers

7,712 sq km (2,978 sq mi). Block 53/30 cov-ers 6,313 sq km (2,437 sq m) in the Pearl Riv-er Mouth basin. Water depth in the blocks is 300-2,000 m (984-6,562 ft).

Devon will conduct a 2D seismic survey and wildcat drilling during the eight-year ex-ploration period.

MediterraneanLibya is back in the big picture, and a

handful of companies are actively pursuing offshore acreage.

Interestingly, Russias Gazprom is one of the companies that has been successful in the bidding process.

On Dec. 20, Gazprom was declared the winner among 45 contenders for block 19. The company won an upstream license for up to 30 years for the block. At present, Gaz-prom expects to spend more than $200 mil-lion for geological exploration and drilling. Plans include drilling six exploration wells.

Developing offshore block 19 in the Med-iterranean Sea will be Gazproms second largest project in Libya. The rst project will be executed under a framework asset swap agreement between Gazprom and BASF. Un-der the agreement, Gazprom will get a 49% stake in Wintershall Holding that annually recovers 5 million metric tons (5.5 million tons) of oil in Libya.

Libya has 1.5 tcm in proven gas reserves, and the countrys gas potential is practically untouched. Annual production is 7 bcm, with only 83% consumed domestically.

The country is also rst in Africa in terms of proven light sweet crude oil reserves, with 5 billion metric tons (5.5 billion tons).

With the door now wide open to investors, many have already lined up for a shot at explor-ing the countrys proli c hydrocarbon basins.

While Gazprom is just getting into the

game in the Mediterranean, Lundin Petro-leum is cashing in.

Late in December, Lundin Petroleum AB and Atlantis Holding Norway AS announced that gross oil production from the Oudna eld offshore Tunisia now exceeds 20,000 b/d following the commissioning of water injection and arti cial lift facilities.

The coventurers have equal shares in the eld, with Lundin Petroleum acting as op-erator.

ETAP, the Tunisian state oil company, has a 20% purchase option in the eld that can be exercised up to 120 days from rst oil produc-tion, which took place in November 2006.

AmericasStatoil celebrated a milestone offshore

Venezuela early this year with the comple-tion of drilling operations on the Cocuina-2X well. This well is part of a three-well explora-

G L O B A L E & P Judy Maksoud Houston


The Okume complex central processing facilities are tied back to the Sendje Ceiba FPSO offshore Equatorial Guinea.



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tion campaign on block 4 of Plataforma Del-tana offshore eastern Venezuela.

The well, 240 km (149 mi) from the Ori-noco Delta, was drilled to a TD of 3,406 m (11,175 ft). The well con rmed dry gas in the three intervals tested. Statoil says block

4 potential will be con rmed when the ex-ploration program is completed.

Next on the agenda is the Ballena-1X well, which will be drilled in 350 m (1,148 ft) wa-ter depth, the deepest water ever drilled in offshore Venezuela.

Statoil won operatorship of the Plataforma Deltana block 4 license in 2003.

More drilling is in the works offshore

Trinidad as well.Canadian Superior Energy Inc. has sched-

uled refurbishment work on the Kan Tan IV semisubmersible rig, which has been con-tracted to drill three wells off the east coast of Trinidad. The company announced on March 19, 2006, that the Kan Tan IV had been con-tracted to drill two wells on the Canadian Su-perior-operated block 5(C) offshore Trinidad. The drilling of the third well was contracted and announced in November 2006.

The semi will drill the Victory 1, Bounty 1, and Endeavour 1 wells on separate gas pros-pects on the block, the company says.

While Canadian Superior prepares its drill-

ing operations, BG Group Plc. and partner Chevron have entered into heads of agree-ment with the National Gas Co. of Trinidad and Tobago Ltd. to supply 220 MMcf/d of gas for up to 15 years beginning Jan. 1, 2009.

The gas will be used in the domestic natu-ral gas market. A fully termed gas sales agree-ment is expected to be nalized in 2007.

Gas will come from the BG Group-operated East Coast Marine Area, which contains four

G L O B A L E & P


542

31

CaracasBlocks

TRINIDAD

GUYANA

VENEZUELA

SOUTHAMERICA

Areashown

Statoil confi rmed gas with the Cocuina-2X well drilled in block 4 of the Plataforma Deltana area offshore Venezuela.

Bergen | Kongsberg | Aberdeen | Houston

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For more than 60 years, KBR has made it possible for our clients to execute some of the most complex offshore projects in the world.

From concept through execution, KBR delivers the engineering and project management expertise for offshore production facilities, xed and oatingplatforms, pipelines and subsea solutions for today and beyond.

To learn more, contact us at [email protected] or visit www.kbr.com.

2007 KBR. All Rights Reserved. KA389




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natural gas elds Dolphin, Dolphin Deep, Star sh, and Manatee and the North Coast Marine Area, 40 km (25 mi) off the north coast of Trinidad, which includes the Hibis-cus, Poinsettia, Chaconia, and Ixora elds.

Offshore Brazil, Petrobras began Phase 1

of production operations with the P-34 plat-form on the Jubarte eld.

The Jubarte-4 horizontal well is expected to produce 15,000 b/d of heavy oil. Three other wells will constitute a contribution to P-34 to achieve its nominal capacity of 60,000 b/d of oil in the coming months.

Petrobras added production from the sec-ond well, ESS-110, at the end of 2006. When P-34 production reaches its peak, the Espri-to Santo Business Unit (UN-ES) is expected to produce 135,000 b/d of oil.

EuropeAccording to an announcement by the

Irish Ministry of Marine & Natural Resourc-es in early January, Ireland will hold a licens-ing round offering exploration blocks in the Porcupine basin this year.

Noel Dempsey, minister for communica-tions for the Marine & Natural Resources Ministry, originally signaled his intention to launch this new round at the conclusion of the

Slyne/Erris/Donegal licensing round in 2006. The acreage on offer in the Porcupine ba-

sin covers unlicensed blocks in a 63,500-sq-km (24,517-sq-mi) area that has been classi ed as Frontier acreage because of the challenging environment of Irelands Atlantic margin.

A comprehensive Strategic Environmen-tal Assessment (SEA) of the region will take place before exploration licenses are award-ed. External environmental experts will con-duct the SEA, and public consultation will form an integral part of the assessment.

Applications for Frontier exploration li-censes for blocks in the bidding round proba-bly will be invited in May 2007, with a closing date at the end of October. Bidders reportedly will be limited to applying for a maximum of three blocks in the north of the basin and for a maximum of six blocks in the south.

Central Europe/CaspianThere were some interesting developments

late last year in the Aral Sea when the mem-bers of a consortium of investors, including Uzbekneftegaz, Lukoil Overseas, Petronas Carigali Overseas, CNPC International Ltd., and KNOC Aral Ltd., signed a joint operating agreement and a single operator agreement to implement a production-sharing agree-ment (PSA) in the Uzbek sector of the sea.

The original PSA was signed Aug. 30, 2006, in Tashkent. Each member of the con-sortium holds an equal share.

In late October 2006, the government of the Republic of Uzbekistan adopted a resolu-tion on the measures to implement the proj-ect, which provided for the documents to be signed in the two months following.

The agreements set the terms and condi-tions to establish the operating company, to identify its functions, and to de ne relations among the parties under the PSA.

Exploration operations will be carried out in two phases. In the rst phase, a 2,300- km (1,429- mi) 2D seismic survey will be shot and two exploration wells drilled for a minimal -nancial commitment of $99.8 million under the program during the rst three years.

The consortium expects to select a seis-mic contractor in mid-February 2007, with seismic operations beginning in March.

A feasibility study will be drafted and ap-proved based on the results of the rst phase, with subsequent approval of the commercial terms of the PSA, including the minimal pro-gram for the second phase and tax rates and other payments as well as other parameters.

Phase two exploration operations will be undertaken after the commercial terms of the PSA are approved.

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Venture strengthens Sevan alliance

Venture Production has contracted Sevan Marine for a second FPSO for its UK North Sea operations. It will be similar to the Sevan Hummingbird, currently under construction in China, which is due to sail out later this year to Ventures Chestnut oil eld. In both cases, the cylindrical hull and marine systems are based on the patented Sevan 300 technology (formerly known as the SSP 300).

The new platform is destined for Pilot, a heavy oil eld discovered in 1989 in central North Sea block 21/27a, with estimated reserves of 90 MMbbl. Venture is lining up an appraisal well on the eld this spring, using a vessel modi ed for shallow water drilling. It also aims to appraise a nearby heavy oil discovery in block 28/2a. De-pending on the outcome and UK government approval, Sevans current year-long agreement, covering detailed engineering for the production facilities, could be extended to a 5- to 10-year life-of- eld contract.

Venture plans to export Pilots oil via the BP-operated Forties Pipeline System. Pro-duction should start in 2009, but the plat-form could be re-deployed later on to work other stranded elds in the companys port-folio as is the plan with Chestnut.

In the southern UK block 47/9c, Venture is farming into Barbarossa, a gas structure discovered by the British Gas Council in 1982. The eld also adjoins Ventures Chan-non exploration prospect in blocks 47/3h and 47/8c. Under an agreement with the current license holders, Corsair Petroleum and Nido Petroleum, Venture will pay the en-tire cost of a single development well target-ing 30-35 bcf of reserves, probably tiedback a short distance to BGs Mercury platform, using the jackup Noble Julie Robertson.

In the same region, Tullow Oil has gov-ernment sanction for another single-well gas development, called Thurne. Accord-ing to eld analysts BritBoss, Tullow plans to drill a horizontal well as a sidetrack from the Deben subsea producer (a tieback to the Thames AR platform). Debens subsea tree will be removed and replaced by a new one from Vetco Gray. The existing gas export owline and umbilical will be retained.

Talisman lines up jackup for Yme revival

Talisman Energy has submitted its plan for re-developing the Yme oil eld in the Norwe-gian North Sea. Assuming government ap-proval, this will be the rst reactivation of an abandoned eld on the Norwegian shelf.

Former operator Statoil developed Yme with a leased drilling and production jackup, extracting 51 MMbbl between 1996 and 2001. But plummeting oil prices rendered further production economic, causing Statoil to shut down and remove the eld facilities, eventu-ally relinquishing the surrounding produc-tion license. This was reissued to Talisman in partnership with Revus Energy and Pertra in 2004 under Norways 18th licensing round.

Talisman has budgeted $656 million for the new scheme, again based around a leased pro-duction jackup, with 12 producer and injector wells, ve of them to be completed subsea. The Maersk Giant will handle rst-phase devel-opment drilling.

According to eld analysts ScanBoss, the company screened ve production concepts before settling on Gusto MSCs MOPU/stor-age jackup platform, devised originally for marginal oil elds remote from pipeline in-frastructure. This concept was rst applied in the Danish sector Siri eld in the late 1990s. In Ymes case, the platform will rest on a steel storage tank xed to the seabed, of oading oil directly to a shuttle tanker.

Gusto MSCs parent company SBM has contracted yards in the UAE and Malaysia to build the platform and storage facility, with rst oil scheduled for early 2009. Talisman expects to produce around 70 MMbbl over the elds life (associated gas is likely to be reinjected), and the facilities also may be used to tie in discoveries on the companys other blocks in the Egersund basin.

Talismans Gyda platform in the North Sea also may host Dongs rst operated de-velopment in the Norwegian sector. Scan-Boss says the Danish company plans this summer to appraise Oselvar, a 40 MMboe eld in block 1/3 discovered by Elf in 1991, using the jackup Maersk Guardian.

Assuming that the well meets expectations, Dong may look to steer two horizontal subsea producers through the oil rim beneath the gas cap. The wells would then tie back either to Gyda

or BPs Ula platforms, both 23 km (14 mi) east.In the Barents Sea, Statoil and its part-

ners have abandoned efforts to develop the Snhvit gas elds oil zone. Gas production is due to start late this year, and ideally the oil zone should have been worked on soon after-wards to maximize recovery before reservoir pressure dropped too far. However, recent technological and reservoir studies suggest development would not be economic.

The company is pushing ahead, how-ever, with its latest scheme to maximize the Norne infrastructure in the Norwegian Sea. It recently issued a NOK2.4 billion ($371 million) development plan for Alve, a 1990 gas-condensate discovery, which it proposes to tie back to the Norne FPSO via a four well-slot subsea template. At peak, Alve should produce 4 MMcm/d (141 MMcf/d).

Goliat heads Norwegian exploration roll call

Norwegian sector operators spudded 26 exploration wells across the shelf last year, according to the Norwegian Petroleum Di-rectorate (NPD). This was nearly double the 2005 total, although fewer wells were drilled than planned, mainly due to rig shortages.

The combined efforts led to four new dis-coveries. By far the largest was Enis 7122/7-3 in the Barents Sea beneath the Goliat oil eld, which found new oil in the Kobbe formation in Mid-Triassic rocks. The discovery was further delimited by well 7133/7-4, which proved gas as well as oil in the Kobbe horizon, leading in turn to another minor oil nd deeper in the Tri-assic Klappmys formation. Eni plans further drilling on the production license this fall.

Statoil saw two small Jurassic discover-ies near its production centers at Norne and Gullfaks and also had good results appraising Torenerose, east of Snhvit; Morvin, 8 km (5 mi) west of Aasgard; and Gudrun, north of Sleipner. Other appraisal successes include Talismans work on the 1983 Krabbe nd, west of Ula, which the company may develop in tandem with the closed-in Mime eld.

Attention has shifted to the Norwegian Sea, where Shell, Total, and Hydro are drill-ing potentially high-yield wells on the Onyx, Hans, and Zita prospects. Despite continuing rig constraints, NPD anticipates 30 new ex-ploration wells offshore Norway this year.

NPD foresees a total exploration spend of NOK 23 billion ($3.6 billion) in 2007, and de-velopment spending of NOK 82 billion ($12.7 billion). It expects eight new eld develop-ment plans to come forward, including BPs Skarv, and revised plans to lift recovery from major production centers such as Eko sk, Eld sk, Snorre, Troll Oil, and Valhall. Over the next ve years, these and other projects should lift total investments across the shelf to NOK 478 billion ($71 billion).

O F F S H O R E E U R O P E Jeremy Beckman London


The Sevan Hummingbird for the Chestnut fi eld, one of two Sevan 300 FPSOs currently under construction at the Yantai Raffl es yard in China.



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Bush lifts ban on Gulf, Alaska acreage

US President George W. Bush has lifted the executive ban on oil and gas leasing in two areas in the outer continental shelf (OCS), one in Lease Sale 181 South in the central Gulf of Mexico and the other in the Bristol Bay, North Aleutian basin of Alaska.

Interior Secretary Dick Kempthorne now has the option of offering these areas during the MMS next ve-year (2007-2012) OCS oil and gas leasing program.

Kempthorne also has increased the roy-alty rate for new offshore deepwater federal oil and gas leases (excluding Alaska) from 12.5% to 16.7%. He projects that this could yield up to $4.5 billion over 20 years.

Together, these actions will enhance Americas energy security by improving op-portunities for domestic energy production, and also will increase the revenues that the federal government collects from oil and gas companies on behalf of American taxpay-ers, says Kempthorne.

The NOIA has a different view. The organi-zation says the rate increase may not yield the anticipated additional revenue. By increasing the royalty rate, the government is increasing oil and gas companies operating costs, which could drive exploration overseas and reduce domestic production, resulting in decreased revenue to the federal treasury, and less oil and gas for the American consumer.

Raising royalty rates is bad public policy that could either reduce domestic production and drive up prices, or simply delay when the treasury collects its compensation, adds the agency.

Nevertheless, the new rates will take effect

with the rst 2007 GoM lease sale, which is scheduled for late August.

The new Gulf area opened for leasing was withdrawn from consideration through 2012 by former US President Bill Clinton in 1998. The North Aleutian basin area opened for leasing was held under a Congress-imposed moratorium from 1990 through 2003, and then discontinued in 2004.

The 2007-2012 OCS Oil and Gas Proposed Final Program and Final Environmental Im-pact Statement are scheduled for release in the spring.

Environmental review under way

The MMS is conducting environmental reviews on 580,000 offshore acres in the eastern Gulf, as directed by the Gulf of Mex-ico Energy Security Act of 2006, signed by President Bush on Dec. 20, 2006.

The legislation allows for oil and gas leas-ing in two areas: the 181 Area, comprising 2 million acres in the central GoM Planning Area and a segment of 580,000 acres in the eastern GoM Planning Area; and in the 181 South Area, consisting of 5.8 million acres in the central GoM Planning Area.

The central portion of the 181 Area was reviewed in a draft Environmental Impact Statement published in November 2006. This area will be available for lease in Sale 205 scheduled for early fall.

Helix Producer I under construction

Construction is under way on Helix En-ergy Solutions $140-million disconnectable oating production system for installation

on the Phoenix (previously Typhoon) eld in Green Canyon block 236/237.

The train ferry Karl is being converted in Croatia into the Helix Producer I (HPI), also called Kommandor 5000. A 50/50 JV (Kom-mandor Llc.) comprising Helix and KR RM will own the DP2 vessel.

The re-deployable unit will be tted to han-dle 45,000 b/d of oil and 70 MMcf/d of gas. It also will have a quick-disconnect riser system for relocation from an imminent hurricane. Hydrocarbons will be exported through the Gulfs existing pipeline network.

The contract for supply of the vessels ex-ternal riser turret has been issued, and long lead items for the topside facilities have been ordered. Subsea infrastructure will be in-stalled by the companys Intrepid or Express.

Subsea wells from the Helix-operated Phoe-nix, Boris (Green Canyon block 282), and Little Burn (Green Canyon block 238) elds will be tied back to the HPI, with rst produc-tion expected in mid-2008. Helix recently ac-quired 100% working interest in these elds from Chevron, BHP Billiton, and Noble En-ergy. Wells from the Balvenie (Green Canyon block 235), Tornado (Green Canyon block 280/281), and Kissy Suzuki (Green Canyon block 325/326) prospects will be tied back to the facility as well, pending drilling results with the companys Q4000.

Meanwhile, Helix is designing a Q4000 look-a-like. GVA, under contract to Helix, is performing the detailed design of the semi-submersible drilling rig, Q4500. The owner has ordered $23 million worth of thrusters and engines for the rig, and was scheduled to issue an RFP in January for construction. Pending project sanction, which is anticipat-ed in the rst half of this year, the semi is ex-pected to be ready for service in late 2009.

Independence Hub sets sailThe Independence Hub oating production

platform set sail on Jan. 29 from Corpus Christi, Texas, for a ve-day trip to Mississippi Canyon block 920 where it will be installed. The hub, owned by Enterprise Products Partners (80%) and Helix Energy Solutions Group (20%), will be moored 241 km (150 mi) southeast of Ven-ice, Louisiana, in 2,438 m (8,000 ft) of water, the deepest to date for an offshore platform, according to Enterprise.

Mechanical completion of the platform is expected by mid-March, followed by rst production in the second half of the year.

The semis hull was fabricated in Singa-pore and its topsides, designed with capacity for 1 bcf/d of natural gas, were built at Kiewit Offshore Services. In September 2006, the platforms topsides were integrated with the hull in Corpus Christi. Heerema Marine Contractors is responsible for the hull and mooring system transport and installation.

G U L F O F M E X I C O David Paganie Houston


The Independence Hub semisubmersible fl oating production unit is under tow to Mississippi Can-yon block 920.



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____________

Other major contractors include Atlantia Offshore for the hull and mooring system design and fabrication; Alliance Engineering for top-sides engineering; and Allseas for installation of the owlines and gas export pipeline.

The $2 billion dollar project is anchored by an initial 10 subsea elds in water depths from 2,377 2,743 m (7,800 9,000 ft).

Technip picked up a contract from Mariner Energy Inc. for the fabrication and installation of a subsea owline and risers for the Bass Lite development.

The contract calls for the engineering, procurement, fabrication, and installation of a steel owline that will tieback subsea wells in Atwater Valley bock 426 in 2,057 m (6,750 ft) of water to a steel cat-enary riser to be installed on the Devils Tower spar moored in 1,707 m (5,600 ft) of water.

Technip also will design and manufacture one FLET ( owline end termination), two FLMTs ( owline midline terminations), and manufacture and install a jumper.

Detailed engineering and project management will be in Houston; assembly of the owline and SCRs will occur at the companys spool-base in Mobile, Alabama. The contractors pipelay vessel Deep Blue will carry out installation in the fourth quarter.

Socotherm has secured a deepwater contract as well. The company was awarded an $8 million contract by Murphy Oil to insulate pipe for the Thunder Hawk project in 1,700-1,900 m (5,577-6,234 ft) of water.

The contract calls for the insulation of 22 km (14 mi) of 8-in. (80 mm) pipe for installation on the Thunder Hawk eld in Mississippi Canyon block 735. Socotherm will apply its wetiskokote syntactic polypropylene external insulation with hollow glass spheres for thermal insulation and mechanical strength.

Socotherm will execute the contract with alliance partner Tenaris. Installation is scheduled to begin in the third quarter.

The Murphy-operated Thunder Hawk project includes mooring of an Atlantia-designed semisubmersible production facility in 1,800 m (5,905 ft) of water. Aker Kvaerner will carry out facility installation with its vessel Boa Sub C in 2Q 2008.

Hess completes Pony sidetrackHess Corp. has completed the Pony sidetrack well No. 2 in Green

Canyon block 468. The well, drilled to 9,337 m (30,634 ft) TD, encountered 85 m (280

ft) of oil pay in Miocene age reservoirs after penetrating 60% of its objective.

According to the company, the sidetrack well established a re-cord for the deepest conventional core ever recovered in the Gulf of Mexico, at 137 m (450 ft). The company says the oil bearing sec-tion in the sidetrack well is similar in thickness and quality to the equivalent interval in the discovery well, which was drilled to 9,890 m (32,448 ft) TD and encountered 145 m (475 ft) of oil pay.

Total hydrocarbon resources are estimated in the range of 100-600 MMboe. Hess has a 100% working interest in Pony.

The company has arranged for the semi Ocean Baroness to ap-praise Pony No. 2.

Semi study for GotchaTotal USA E&P has contracted Exmar Offshore Co. to provide proj-

ect management and engineering services for the semisubmersible pre-FEED study for the Gotcha development.

The eld is in Alaminos Canyon block 856 in 2,438 m (8,000 ft) of water.

Exmar will be the main engineering contractor. The company also will provide engineering and analysis for the proposed standalone semisubmersible oating production facility, based on its proprietary design, OPTI-6000.

The re-deployable semi will be tted with upgradeable capacity to

handle initially 40,000 b/d of oil and 40 MMcf/d of gas.Other companies in the study include Houston Offshore Engineer-

ing for riser analysis, Intec Engineering for subsea production systems and ow assurance, Mustang Engineering for topsides design, and Aker Marine Contractors for mooring installation.

The study is scheduled for completion by the end of April. Con-struction of the semi is expected to be completed in 1Q 2009.

Exmar says it will lease the facility to operators for early produc-tion or marginal eld development under short-term contracts.

Total operates Gotcha with a 70% working interest; Nexen holds the remaining 30%.

ATP acquires acreageATP has completed the acquisition of a percentage working inter-

est in a number of US Gulf of Mexico blocks. The company now owns a 50% working interest in Aconcagua

(Mississippi Canyon block 305), a 16.67% working interest in Cam-den Hills (Mississippi Canyon block 348), and an additional 25.83% interest in the Canyon Express Pipeline Common System.

Aconcagua currently produces 10 MMcfe/d net to ATP, and Camden Hills produced previously, but currently is shut-in.

Aconcagua, in 2,079 m (6,820 ft) of water, Camden Hills, in 2,168 m (7,112 ft) of water, and the companys Kings Peak eld (DeSoto Canyon block 133), in 1,994 m (6,541 ft) of water, all produce through Canyon Express. ATP now owns a 45.08% interest in Canyon Ex-press as a result of the acquisitions.

The company says it completed the transaction primarily to ac-quire the undeveloped reservoirs of Aconcagua, for further study of Camden Hills, and to expand its interest in the Kings Peak/Can-yon Express hub area. In 2009, ATP expects to be named operator of Aconcagua and Canyon Express, and will begin planning further development of Aconcagua.

The company also has increased its working interest from 50% to 100% in Ship Shoal block 351 in 107 m (350 ft) of water. Drilling is planned to begin in the rst quarter.

G U L F O F M E X I C O


3D image of the hull and truss deck of the Exmar-designed semisubmers-ible production facility, OPTI-6000. The re-deployable platform will be leased under short-term contracts for early production or marginal fi eld developments.



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Contracts issued for BC-10 eldsShell Brasil Ltd. as operator for development of the BC10 elds in

the Campos basin offshore Brazil has contracted Subsea 7 to install 10 steel pipelines totaling 109 km (69 mi), to fabricate and install six steel lazy-wave risers totaling 18 km (11 mi), to transport and install three dynamic and two static umbilicals totaling 50 km (31 mi), to install four client-supplied manifolds, and to fabricate and install 25 rigid jumpers.

The BC10 elds are 120 km (75 mi) southeast of Vitria in water depths between 1,600 m and 2,000 m (5,249 ft and 6,5621 ft).

Subsea 7s new pipeline installation vessels the Seven Oceans and the Seven Seas will undertake the offshore installation. The Seven Oceans deepwater rigid pipelay vessel is due to be delivered to Sub-sea 7 in 2007, and the Seven Seas deepwater exlay and J-Lay vessel is scheduled for mid-2008 delivery. Both vessels are under construc-tion in Holland.

Floating production system orders jump Since July 2006, there have been 20 orders for oating production

facilities, according to International Maritime Associates (IMA). There are 62 on order for delivery in the next two years to join the

188 in service or available at the end of 2006. The backlog consists of 47 FPSOs, 9 production semisubmersibles, 2 TLPs, and 4 spars

The current inventory is 115 FPSOs, 39 production semis, 20 TLPs, and 14 spars. There also are an additional 70 oating storage vessels without production capability.

IMA has identi ed 105 more projects currently in bidding, design, or planning that might use oating production or storage systems.

This is by far the highest order backlog of oaters in the 30-year history of oating production systems, says Jim McCaul, head of IMA. The number of oaters now on order is about the same as the total number in operation 10 years ago.

Shell awards umbilicals for Perdido eldsShell Offshore Inc. has awarded a contract to Technip subsidiary

Duco Inc. for the umbilicals to develop the Gulf of Mexicos Great-

S U B S E A / S U R FA C E S Y S T E M S Gene Kliewer Houston

Subsea 7s Seven Oceans. 0

50

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TLP

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188 unitsend 2006

64 units10 years ago

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Floating production facility demand growing.

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White, Tobago, and Silvertip elds which will produce through the Perdido project.

The contract is for engineering and manu-facturing of four dynamic and three static umbilicals, two steel-tube ying leads with topside and subsea hardware, and a proto-type.

Total umbilical length is 53,466 m (33 mi). The prototype is for quali cation testing to prove the design.

Great White, Tobago and Silvertip elds

are scheduled for development via a Perdido regional host in Alaminos Canyon, 322 km (200 mi) south of Freeport, Texas, in about 2,438 m (8,000 ft) of water. The direct verti-cal access spar will be the deepest spar pro-duction facility in the world. This spar was the subject of a contract already awarded to Technip for construction at its yard in Pori, Finland.

First production from Perdido is expected around the turn of the decade.

S U B S E A / S U R FA C E S Y S T E M S

Subsea Tieback Forum provides answers, de nes future

The big news recently has been in deepwater discoveries. If those discover-ies are going to contribute to the worlds oil supply, some big news in production technology will have to follow. The 7th Annual Subsea Tieback Forum & Exhibi-tion (SSTB) directs industry attention toward that side of the equation.

From Feb. 27 through March 1 at Moody Gardens in Galveston, Texas, the SSTB will feature practical and up-to-date presentations on the status and issues involved with subsea tiebacks. The event will address the current status of related technology and look ahead toward future solutions to deepwater production. The Offshore Magazine sponsored event is designed to permit operators and con-tractors with an opportunity to discuss common problems and individual solu-tions in a private setting.

From the opening keynote speech scheduled to come from Ryan M. Lance of ConocoPhillips through to the closing panel discussion about the challenges of completing projects on time and on budget, the Forum will address practical, fi eld-oriented systems, procedures, and hardware. Individual sessions are sched-uled around the big hub development concept and execution, long-distance tie-backs, maintaining reliability in deepwa-ter and with diffi cult wells, real problems and how they were attacked, operation case studies, and subsea boosting.

Scheduled participation is coming from such operators as Anadarko, Shell, Total, BHP, ExxonMobil, Chevron, BP, and Petro-bras, plus subsea equipment and engi-neering suppliers such as Aker Kvaerner, Technip, Vetco, Intec, TDW Offshore, Oceaneering, and FMC. In addition, there is the individual contact between sessions and on the exhibit fl oor with other people involved in the same business.

There is also information to be gleaned from the 100 or so exhibits that will parallel the Forum. Representatives will range from small valve manufactur-ers to turnkey system suppliers.

ConocoPhillips is the show host, and the Society for Underwater Technology is the supporting organization. Forum spon-sors are Aker Kvaerner, Cameron, Cross Group, CorrOcean, FMC Technologies, Helix Energy Solutions, Oil States Indus-tries, Technip, Vetco, and the UK Subsea pavilion. PennWell is the conference or-ganizer, and the fl agship media sponsors are Offshore, Oil & Gas Journal, and Oil, Gas & Petrochem Equipment.

For more information, up-to-the-min-ute schedules, speaker topic details, or for registration, look online at www.subseatiebackforum.com.




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New multi-purpose vessel will work anywhereFollowing a successful management buyout, C&M Marine Ser-

vices Ltd. is investing $100 million to purchase and convert a multi-purpose support vessel capable of operating anywhere in the world.

The Ice Maiden, formerly the MV Paardeberg, a 14,000-metric ton (15,432 ton) Russian Class AAA ice-breaker, is in the Atlantic Marine Shipyard in Mobile, Alabama, undergoing conversion into a multi-purpose construction vessel with xed accommodation for 400. It will become the rst mono-hull otel to work in the North Sea.

When fully-refurbished, the Ice Maiden will have ice-breaking capa-bilities and temperature controlled workshops and will be capable of operating in some of the harshest climates, including the Arctic Circle, where it is reported that over 30% of the worlds remaining hydrocar-bons are located, says group operations director, David Kellas.

Growing exploration and production activity within Arctic waters include such elds as Shtokman, Obskaya, Tazovsskaya Bay, and Sakhalin Island. At present, there are no vessels that can operate for more than four or ve months per year in these waters.

The Ice Maiden, with a 45-cm (18-in) thick hull, can cut through ice over 1 m (3.3 ft) thick at a cruising speed of 1.5 knots.

The company plans to complete the conversion in the next three months so that the vessel can be on station in the North Sea toward the end of May 2007.

Heavy liftKeppel Verolme BV is pursuing a rst as well. The company

has secured a $184-million contract to build a oating heavy lifter to decommission offshore structures.

This innovative rst-in-the-world heavy lifter of its class was awarded by MPU Offshore Lift ASA, a subsidiary of the Norwegian design and development company MPU Enterprise AS.

The semisubmersible unit is expected to be completed by early 2009. Keppel Verolme will execute the marine out tting works and will

build the accommodation block. The company also will fabricate and carry out steelwork, and will install equipment to lift topsides and jack-ets. Yard facilities will be leased for construction of the concrete sub-structure by the owners appointed civil contractor, the company says.

Heerema adds newbuildHeerema Marine Contractors is investing $1 billion for a new

deepwater construction vessel.A new generation, deepwater construction vessel is needed to

meet the demands of national and international oil companies. Mar-ket developments and needs of customers, as well as our current

market position, are strong drivers behind the decision to proceed with the design of a new vessel, says HMCs CEO, John Reed.

Design is under way, and a competitive tender will be launched to select a shipyard for fabrication. Likely candidates are in Southeast Asia, Reed says.

The vessel will measure approximately 220 m (722 ft) by 88 m (289 ft) and will be equipped with capacity to lift at least 12,882 met-ric tons (14,200 tons), equivalent to the companys Thialf.

According to Heerema, the vessel will be marketed for worldwide use, including the Arctic.

Frontline converts vesselThe market for heavy-lift vessels has prompted Frontline Ltd. to

get into the game. Late last year, Frontline declared an option with COSCO Shipyard, China, to convert the Front Target to a heavy-lift vessel. The conversion, scheduled to begin in May 2007 and to con-clude in August 2007, will include tting a new mid-ship section and upgrading all major vessel components. The company estimates the vessels operating life, once the conversion is complete, at more than 15 years.

Frontline has entered into a management contract with Interna-tional Transport Contractors, the Netherlands, regarding commer-cial operation of its heavy-lift vessels.

Another construction vessel enters eet MPU Enterprise AS awarded Grenland Group an engineering

contract for a new semisubmersible concrete vessel, the MPU Heavy Lifter. The vessel is a U-shaped multi-purpose buoyancy lifter for use in offshore installations. It is designed to lift by deballasting and can remove topsides from jackets or oating substructures and can in-stall topsides onto jackets or oating substructures. The MPU Heavy Lifter also is equipped for removing and installing jackets.

The contract includes detail design and engineering and has a val-ue of $4.7 million. The work will be performed in Grenland Groups of ces in Sandefjord.

Jurong to build jackup bargeJurong Shipyard has received a letter of award from Saudi Ar-

amco for the design, construction, and delivery of a self-elevating, heavy-lift jackup barge to be completed in 1Q 2010.

The jackup will be a self-elevating heavy-lift, subsea pipeline re-pair and maintenance support unit, designed for operations in 5-60 m (16-197 ft) water depths in the Arabian Gulf.

The jackup barge structure, machinery, and systems will be built for a life span of 30 years. Capable of continuous operations for 14 days, the jackup barge also is designed to withstand 50-year storms from any direction when elevated.

Labroy to build AHTSsIn late 3Q 2006, Labroy Shipbuilding and Engineering Pte. Ltd.

secured contracts to build two 72.5-m (238-ft), 150-metric-ton (165-ton) bollard pull anchor handling tug supply (AHTS) vessels. The units are scheduled for delivery in 2009.

These new shipbuilding contracts have raised the companys or-der book to $1.2 billion, says director Tan Boy Tee, Labroy chairman and managing director.

Tan projects a strong outlook for the building of new offshore AHTS vessels globally. Similar to oil rigs, the majority of the global offshore AHTS eet was built during the last offshore cycle in the 1970s. Currently, more than 70% of the eet is more than 20 years of age and this aging eet is due for replacement, he says.

There is a strong direct link between the growth of AHTS vessels and that of offshore rig, Tan says. The current boom in rig building bodes well for the prospects of AHTS vessels.

V E S S E L S , R I G S , U P G R A D E S Judy Maksoud Houston


Keppel Verolme BV will build a fl oating heavy lifter to decommission offshore structures.



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Introducing TurboTorqueTM

B R ` a R Q B V Z R > _ \ c R [ B R P U [ \ Y \ T f B;

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proprietar y double-star t thread form that reduces revolutions from stab to makeup by at least 50% to signif icantly cut drilling time and costs.

Documents

OS_20070201_Feb_2007