OS_20070501_May_2007

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Previous Page Contents Zoom In Zoom Out Front Cover Search Issue Next Page


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Superior Energy Services 1105 Peters Road Harvey, LA 70058 Phone: 504-362-4321 Fax: 504-362-4966 www.superiorenergy.com

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May 2007

Time-lapse 4D seismic FPSO report CGG/Veritas interview LWD vs. wireline logs

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

World Trends and Technology for Offshore Oil and Gas Operations

International International E&P report:E&P report:Region-by-region review & forecast

INSI

DE:

INSI

DE:

Deep

water

Reco

rds &

Deep

water

Reco

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Conc

epts

Poste

r

Conc

epts

Poste

r

Innovative jackup develops Caspian eld

For continuous news & analysisFor continuous news & analysiswww.offshore-mag.comwww.offshore-mag.com

First DP FPU for GoM

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SupplementScorpion

Drilling | Evaluation | Completion | Production | Intervention

From routine to extreme.When a client needed reliable drilling data under extreme conditions in the Gulf of Mexico, we delivered and set a world record in the process.

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At 3,048 m (10,000 ft.) water depth, its no time to experiment.Its time to deliver.

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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 $ 83.00 per year, Canada/Mexico $ 109.00 per year, All other countries $138.00 per year (Airmail delivery: $193.00). Worldwide digital subscriptions: $83 per year. Single copy sales: US $7.50 per issue, Canada/Mexico $9.50 per issue, All other countries $11.50 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. To receive this magazine in digital format, go to www.omeda.com/os. Standard Mail A enclosed version P3.

International EditionVolume 67, Number 5

May 2007

C O N T E N T S

E-TECHNOLOGYDelivering the digital oil eld: Access, timeliness among keys ................................ 54The digital oil eld is all about enhancing asset value and optimizing operations, production, and reserves through application of information technology and practices.

DRILLING & COMPLETIONNew impact technology could revolutionize wireline logging .................................. 56Since the introduction of slickline technology for wellbore intervention, there has been a need for a measurement device that can determine not only the strain on the wire, but the forces ap-plied to the toolstring.

High-resolution LWD image logs versus wireline image logs .................................. 62Today, high-resolution logging while-drilling (LWD) images are available, and they offer information in real time, as well as the opportunity to acquire time-lapse information through re-logging while tripping.

Oil-based mud imaging tool meets challenges ......................................................... 68Improved oil and synthetic based drilling uids (muds) have been developed and are being used to drill wells in hostile environments where high pressures, high temperatures, thick shales, and shale sloughing are encountered.

PRODUCTIONShah Deniz in full ow following complex platform set-down ................................ 70Production is building at Shah Deniz in the Azeri sector of the Caspian. Under the rst phase of the BP-operated development, nine wells will deliver up to 900 MMscf/d of gas and 58,000 b/d of condensate.

$38 billion to go to oating production during 2007-2011 ....................................... 74Recent years have seen a rapid expansion of the worlds FPSO eet, prompted in part by an in-creased demand for drilling units that has reduced the number of semisubmersible rigs available for conversion to production platforms.

Developing the right concept for offshore developments ...................................... 80Selecting the right concept for producing an offshore eld can have a major impact on the suc-cess of the project. In light of that fact, the conceptual phase needs to be scrutinized thoroughly.

Providing answers for un-testable wells .................................................................. 84Well testing has been a critical step in well evaluation since the 1920s. It has always been the rst real measurement of reservoir volumetrics and potential performance.

Full load test addresses concerns over Kashagan H2S gas compression ................ 90Enhanced oil recovery (EOR) methodologies face increasingly extreme challenges when handling gas streams characterized by high levels of contamination, as is the case with the giant Kashagan oil eld development offshore Kazakhstan.

SUBSEAWorlds rst subsea processing system headed for Norway ................................... 92The nal weld has been made on the separation unit for the worlds rst commercial subsea processing unit bound for the North Seas Statoil-operated Tordis eld. Installation is scheduled for the third quarter of this year.

INTERNATIONAL REPORTGoM to see $7 billion in deepwater drilling ....................... 34The US Minerals Management Service estimates undiscovered Gulf of Mexico reserves at 50 Bboe. Estimated capex for 2007 of $7 billion for deepwater developments alone will contribute to uncovering new GoM reserves.

North Sea holds steady ................... 38 Though there has been resurgence in E&P in the UK North Sea, there is some skepticism about whether the level of investment will continue. High rig rates and a lack of new tax incen-tives could cause companies to rein in their drilling plans.

International investment pours into Africa .............................. 42Billions of dollars in international in-vestment have owed into West Africa in the last few years, expanding explo-ration drilling and moving a number of world-class elds into production.

Caspian elds boost regional production ......................... 46Shah Deniz, one of the largest oil and gas elds in the world at an estimated 1.5-3 Bbbl of oil and 50-100 bcm of gas, came onstream last December. Spending for upstream and midstream development is expected to exceed $3 billion.

Growing economies stimulate Asia-Paci c E&P ............. 50Exploding economies in China, India, and much of Southeast Asia are creat-ing an increase in oil and gas demand. The region is expected to lead the world in offshore spending in 2008.

Celebrating Over 50 Years of Trends, Tools, and Technology



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World-class communications anywhere in the world.

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______________________

6 Offshore May 2007 www.offshore-mag.com

CONSTRUCTION & INSTALLATIONHelix to deploy rst ship-shaped DP FPU in Gulf of Mexico .................................... 97Helix Energy Solutions is about to launch the rst ship-shaped, disconnectable, dynamically positioned (DP), oating production unit in the GoM. The vessel will be used to exploit marginal deepwater oil and gas prospects.

Jumbo Shipping exes muscles with all-in-one concept .................................... 102The Netherlands-based Jumbo Shipping has completed a full years work with its J1800-class Jumbo Javelin and Fairpartner DP-2, heavy-lift, transportation, and installation vessels, the rst two of four vessels planned for the class.

Hull strength, fatigue analysis critical during design/conversion phase ............... 106Structural issues reported on both purpose-built FPSOs and conversions after entering service reveal the importance of hull strength and fatigue veri cation during the design/conversion stage.

TRANSPORTATION & LOGISTICSHigh-pressure exible pipe, the next frontier ......................................................... 110 Development of high pressure reservoirs over the past few years, with more expected in the future, and the maturity of the spar platform concept for development of such reservoirs, has increased the need for high pressure pipes.

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International EditionVolume 67, Number 5May 2007

COVER: Superior Energy Services 200-ft class vessels, M/V Superior Inter-vention and M/V Superior Excellence are working as a duel vessel, multi-service package in 72-ft of water in the Gulf of Mexico Matagorda Island area. The vessels are performing coiled tubing/ni-trogen stimulation with electric wireline, which stimulates depleting wells, maxi-mizing well life. One vessel completed hook-up and construction on the caisson while the other vessel completed the wells. This saved the operator on rig time. The vessels are capable of working in water depths to 145 ft. Photo taken by Glen Clark.

102



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WaveCall Series: Systems from10 to 60 inches provides voiceand data services in all the mostpopular cruising spots.

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GEOLOGY & GEOPHYSICSNewly merged seismic super-group plans global expansion ............116It is eight months since CGG and Veritas announced their intention to merge, creating the worlds largest seismic group. Offshore asked CGGVeritas Christophe Pettenati-Auziere, President, Geophysical Services, for a progress report.

Time-lapse seismic swaths prove cost-effective alternative to full- eld 4D ....... 120 With careful planning, time-lapse seismic technol-ogy (4D) swaths can be a cost-effective alternative to full- eld 4D seismic acquisition for structurally simple elds and are important in Shells North Sea 4D strategy.

NOIA SUPPLEMENTOffshore energy education must begin with the public and politicians ................ 130Over the past 25 years, if one thing has proven true its that one Presidential Administration can-not change our dependence on imported oil. Today, the United States continues to import 60% of our oil and were more dependent on sources from the Middle East than we ever have been.

The rst step toward energy independence? .......................................................... 134As I watched the Presidents State of Union address in January, I was struck that he, like Presi-dents before him, was making a promise for energy independence. In more than 20 of the last 34 State of Union addresses since 1973, Presidents have tried to x the nations energy problems.

FRANCE SUPPLEMENTBuoyant French contractors open to global business opportunities ..................... 148Submarine ber-optic and DC power solution for ultra-long tieback .................... 150Cryogenic oating exibles widen options for LNG transfer .................................. 152Construction specialists seeking further alliance opportunities ........................... 154Test loop assesses feasibility of deepwater subsea separation ............................ 156

DENMARK REPORTDenmark promoting its skills in oating production, decommissioning ............... 159Flexible riser passes tensile, fatigue tests .............................................................. 160Ramboll assessing Russian pipeline impact ........................................................... 162

SWEDENSweden technology pro les ..................................................................................... 163

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D E P A R T M E N T S

Comment ............................................. 10Data ..................................................... 12Global E&P .......................................... 14Offshore Europe .................................. 18Gulf of Mexico ..................................... 20Subsea/Surface Systems ................... 24

Vessels ................................................ 26Drilling & Production .......................... 30Geosciences ........................................ 32Business Briefs ................................. 164Advertisers Index ............................. 167Beyond the Horizon .......................... 168

116




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Setting the StandardSetting the Standard

for Safety, Service, and Solutions...for Safety, Service, and Solutions...

www.irtools.com

USA, CANADA & LATIN AMERICAIngersoll Rand2724 Sixth Avenue SouthSeattle, WA 98134 - USATel: + 1 206 624 0466Fax: + 1 206 624 6265

EUROPE, MIDDLE EAST & AFRICAIngersoll Rand529, Avenue Roger Salengro59450 Sin Le Noble, FRANCETel: + 33 3 27 93 08 08Fax: + 33 3 27 93 08 19Certi cate No. FM53539 Certi cate No. QUAL/1991/309e

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International E&P reportThis issue features our annual International Report a complete roundup of offshore

exploration and production activity worldwide.As she does every May, International Editor Judy Maksoud takes a re-

gion-by-region look at what has occurred in the last 12 months. She brings you up to date on discoveries, eld developments, and new exploration plans. As a veteran of this type of research, analysis, and reporting, Mak-soud presents a lively, fact- lled review and forecast from West Africa to the Gulf of Mexico, the North Sea to South America, and the Asia-Paci c to offshore Canada. She covers the globe.

As you might expect to nd, a lot has happened in the last 12 months, and a lot more is on the horizon. For the latest and the soon-to-be-expected, dont miss this annual fea-ture. The 12-page special report begins on page 34.

TPG 500 moves outside North SeaProduction is building at Shah Deniz in the Azeri sector of the Caspian. Under the

rst phase of the BP-operated development, nine wells will deliver up to 900 MMcf/d of gas and 58,000 b/d of condensate. All production is being exported through parallel sea lines to a terminal in Sangachal, on the shore of Azerbaijan.

The wells are being drilled from a three-legged TPG 500 jackup platform, supplied and installed by the projects main engineering contractor, Technip. Shah Deniz is the

third application of this proprietary design, the forerunners being BPs Har-ding and Totals Elgin/Franklin in the North Sea.

In his feature on the development of Shan Deniz, Jeremy Beckman, Edi-tor, Europe, talks with the project decision-makers about how and why the concept was chosen. His report on their selection process and how the eld was developed begins on page 70.

Helix to deploy rst ship-shaped DP FPU in Gulf of Mexico As Managing Editor David Paganie points out in his feature on Helix

Energy Solutions, operators in the Gulf of Mexico continue to nd new ways of dealing with challenging eld development and operational conditions.

Helix is about to launch the rst ship-shaped, disconnectable, dynami-cally positioned (DP), oating production unit in the GoM. The vessel will be used to exploit marginal deepwater oil and gas prospects.

The company also is managing a separate set of challenges at the instal-lation site, where it continues to clear wreckage of the Typhoon TLP. Helixs oating production unit (FPU), Helix Producer I (HPI), will be installed on the old Typhoon eld, renamed Phoenix, in Green Canyon block 237 in 640 m (2,100 ft) of water.

In this Offshore exclusive report, Helix Executive Vice President and COO Bart Heijermans discusses the decision behind the concept selection and the investments upside potential, beginning on page 97.

Time-lapse seismic swaths prove cost-effective With careful planning, time-lapse seismic technology (4D) swaths can be a cost-effec-

tive alternative to full- eld 4D seismic acquisition for structurally simple elds and are important in Shells North Sea 4D strategy.

Thats the conclusion of a team of authors from Shell UK. The authors include Jon Brain, Peter Grant, Rob Staples, and Erik Tijdens.

As they explain, the portfolio approach to 4D swath acquisition successfully acquired time-lapse seismic data over four North Sea elds at low cost with minimal preparation. In the case of Nelson and Guillemot elds, processed results support current business activities. For Scoter and Cook elds, the results are less convincing. In all cases, valu-able information was acquired.

Keys to technical success, they say, are out-of-plane geological dips, which result in imaging errors and serious 4D non-repeatability. See their entire analysis beginning on page 120.


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).

COMMENT 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

PRESIDENT, PETROLEUM GROUP

Michael [email protected]

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HOUSTON AREA SALESDavid Davis [email protected] Tel: (713) 963-6206

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SUBSCRIBER SERVICESContact subscriber services for address changes

Tel: (847) 559-7501 Fax: (847) 291-4816Email: [email protected]

PETROLEUM EVENTSEldon Ball (Houston) [email protected] Vrettos (London) [email protected]

Frances Webb (London) [email protected] Killough (Houston) [email protected]

EDITORIAL ADVISORY BOARDLuke R. Corbett, Anadarko

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

Hugh ODonnell, Saipem Bruce Crager, INTEC Engineering

James K. Wicklund, Spinnerhawk Capital Management

CORPORATE HEADQUARTERSPennWell; 1421 S. Sheridan Rd., Tulsa, OK 74112

MemberAll Rights reserved

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

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P.O. Box 32911, London SW19 5WL UKTel: +44 208 946 7783 Fax: +44 208 946 1543

CONTRIBUTING EDITORSNick Terdre (Norway)

David Shields (Mexico)Peter Howard Wertheim (Brazil)

Gurdip Singh (Singapore)

EDITOR-IN-CHIEFEldon R. Ball

[email protected]

TECHNOLOGY EDITORGene Kliewer

[email protected]

MANAGING EDITORDavid Paganie

[email protected]

DRILLING & PRODUCTION EDITORFrank Hartley

[email protected]

INTERNATIONAL EDITORJudy Maksoud

[email protected]

PRESENTATION EDITORJosh Troutman

[email protected]

Maksoud

Beckman

Paganie



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HALLIBURTONDrilling, Evaluation and Digital Solutions

2007 Halliburton. All rights reserved.

the LOGIQPlatform

Gone are the days when you had to choose between precision

and reliability. Halliburtons LOGIQTM platform for openhole

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breakthrough that delivers it all. Encompassing advanced

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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

0 Dec.

66

Mar.

64

Feb.

68

Sept.

55

Oct.

50

Nov.

53

Jan.

53

Source: US Minerals Management Service

US GoM 39 (0)87 (0)

FloatersJackups

North Sea 40 (0)35 (0)

East Atlantic

Mex GoM5 (0)31 (0) S. Asia

8 (+1)32 (+2)

SE Asia 20 (-1)37 (0)

Far East 3 (0)

16 (0)

M. East 1 (0)

91 (-3) W. Africa 28 (+1)26 (0)

L. America 29 (0)15 (0)

Source: Rigzone.com

3 (+2)0 (-4)

Active rig eet, April 2007

This month Infi eld Systems comments on projects planned and considered for development between 2007 and 2011. Asia is again strong in the total number of fl oating platforms planned up until 2011, with 23% of the world totals followed by Africa and Latin America with 19% and 17%, respectively.

Regionally, in terms of reserves coming onstream, the global picture is dominated unsurprisingly by the Middle East with 39% of world totals, but is most remarkably followed by the three strong growth areas: Asia, Africa, and Latin America with 17%, 11%, and 11%, respectively.


Worldwide offshore summary of projected field developments 2007-2011 WWW.INFIELD.COM, OTC STAND #2599

World Total 1,180 290 187,009 56,552 2,685 33 116 21 10 38 1,032 49 51 64,670 3,092

Regi

on

No. s

hallo

w-wa

ter

fie

lds

(

300

m)

Deep

wate

r r

eser

ves

(MM

boe)

No. s

ubse

a we

llsNo

. FPS

OsNo

. FPS

s

No. T

LPs

No. s

pars

No. p

iled

stru

ctur

es

No. o

ther

floa

ters

No. o

ther

fixe

d s

truct

ures

No. g

ravi

ty-b

ased

stru

ctur

es

Rigi

d flo

wlin

es (k

m)

Flex

ible

f

lowl

ines

(km

)

Gulf of Mexico day rates

Month/Year Minimum Average MaximumDrillshipApril 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 $240,482 $301,700Oct 2006 $190,900 $244,660 $301,700Nov 2006 $190,900 $244,683 $301,700Dec 2006 $190,900 $244,256 $301,700Jan 2007 $190,900 $243,583 $295,200Feb 2007 $190,900 $250,162 $301,700Mar 2007 $190,900 $250,683 $301,700JackupApril 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 $108,806 $185,000Dec 2006 $0 $102,596 $185,000Jan 2007 $0 $100,126 $185,000Feb 2007 $0 $100,470 $185,000March $0 $97,993 $185,000Semi April 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 $425,000Jan 2007 $102,000 $271,540 $435,000Feb 2007 $82,000 $269,991 $468,000March 2007 $82,000 $278,438 $468,000Source: Rigzone.com * Undergoing hurricane repairs.

For details on region For details on region by region offshore activity, by region offshore activity,

see the E&P analysis see the E&P analysis starting on page 34.starting on page 34.



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________

Count on Solar systems and experience.

When youre hundreds of miles out and a storms in the forecast, offshore is a tough place to work. But Solar equipment istougher. All of our turbine-driven generators, compressors and pumps are certified for rugged offshore applications. Thesedurable, reliable machines can take a pounding and keep on producing. So you get maximum uptime and productivity.

Youll also get our skilled people and proven experience. Solar offshore installations are producing results around the world,including in the North Sea, the Gulf of Mexico, and off the coasts of West Africa and Brasil. Whether you have fixed leg or floatingproduction systems, weve designed our packages to meet your needs. And well be there to keep you up and running with theindustrys best service and support.

Thats why so many offshore operations rely on Solar, for everything from equipment to construction to asset management.For more details, contact Solar Turbines at 1-619-544-5352 or visit www.solarturbines.com.

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Asia-Paci cMalaysias deepwater continues to draw international operators.In late March, BHP Billiton Ltd. and Petronas Carigali Sdn. Bhd.

committed $156.4 million to explore ultra-deepwater blocks N and Q in 1,600-2,800 m (5,249-9,186 ft) water depths.

The spending includes $144 million to shoot 1,500 sq km (579 sq mi) of 3D seismic and to drill four wells in the 3,910-sq-km (1,510-sq-mi) block N. The companies have earmarked $12.4 million for 800 sq km (309 sq mi) of 3D seismic on the 4,748-sq-km (1,833-sq-mi) block Q.

The work is expected to take seven years to complete. The area is thought to be similar to the deepwater discoveries of Kikeh, Malikai, Gumusut Kakap, and Ubah.

CNOOC Ltd. is still drilling exploration wells in Chinas Bohai Bay. Late in March, the company made an independent discovery in the Yellow River Mouth Sag.

Discovery well Bozhong (BZ) 28-2 E-1, south of structure BZ 28-2E in the Yellow River Mouth Sag, penetrated oil pay zones with total thick-ness of 35 m (115 ft) and gas sections of 35 m (115 ft). The well was drilled to a TD of 2,575 m (8,448 ft) in 20 m (66 ft) water depth.

During the drillstem test, the well owed at an average rate of 1,600 b/d of oil from the oil zones via 7.14-mm (0.28-in.) and 14.29-mm (0.56-in.) chokes and 10 MMcf/d of gas via 15.08-mm (0.59-in.) choke.

BZ 28-2E lies between the BZ 28-1 and BZ 28-2S oil elds. Since 2006, CNOOC Ltd. has made four discoveries in the Yellow

River Mouth Sag of Bohai Bay, says Zhu Weilin, vice president of the company and general manager of the exploration department. We hope to develop a large-scale cluster of oil and gas elds in the future.

Niko Resources Ltd. made three new discoveries in two blocks off Indias east coast in March. Wells KG-D6-Q1 and KG-D6-P2 are in block D6 in the Krishna-Godavari basin.

The KG-D6-Q1 well is 15 km (9.3 mi) southwest of the AA-1 gas dis-covery. The KG-D6-P2 well is 6 km (3.7 mi) west of the P1 gas discov-ery. The KG-D6-Q1 well encountered pay zones in the distal part of the earlier established channel levee systems in the KG D6 block. Data

obtained from logging and modular dynamic testing (MDT) prove the presence of hydrocarbons.

Well KG-D6-P2 encountered two gas bearing zones, both of them channel fan complexes. Data obtained from logging and MDT corrob-orates the presence of hydrocarbons. These two wells demonstrate the continued high prospectivity of the block, the company says.

Nikos third discovery is in block NEC-25. Well NEC-25-A5 lies in the Mahanadi basin 12 km (7.5 mi) northwest of the earlier natural gas discovery NEC-25-A1 (Dhirubhai 9). The recent well, Dhirubhai 32, is the seventh consecutive discovery in this block. Commerciality is under evaluation, Niko says.

AmericasCanadian Superior Energy Inc. is moving the Kan Tan IV semi-

submerisble to Trinidad. Maersk Contractors, a part of A.P. Moller - Maersk A/S will manage the drilling rig, which is owned by Sinopec Star Petroleum Co. Ltd. of Beijing, China.

The Kan Tan IV has been undergoing a $60-million re t in Browns-ville, Texas. The rig is scheduled to begin drilling on Canadian Superi-ors Victory prospect on Intrepid block 5(c).

Canadian Superior has contracted the Kan Tan IV to drill a three-well program on separate large natural gas prospects: Victory, Bounty, and Endeavour, approximately 97 km (60 mi) off the east coast of Trinidad.

As with any major construction and refurbishment program of this nature, the rig refurbishment has taken longer than we and Maersk and Sinopec had originally planned, but I am pleased to say that we are very close now, Mike Coolen, Canadian Superior presi-dent and COO, says.

The rig was being towed to the port of Chaguaramas in Trinidad to load supplies and nalize drilling preparations before moving to the rst drilling location, Victory-1. Canadian Superior expected the rst well on the Intrepid block to be spudded by the end of April.

Awards are being made for work on the Deep Panuke gas project off-shore Nova Scotia.

Intec Engineering and alliance partner IMV Projects Atlantic have landed a contract for subsea and pipeline design. Front-end engineering and design (FEED) work will support project sanction, which is expected before the end of the year. The FEED work will also lead to bid packages for the subsea and pipeline contracts.

Intec plans to assign a subsea/pipeline engineer to EnCanas of ce in Halifax as part of the clients integrated project management team.

MediterraneanIn mid-March ONGC Videsh Ltd. signed an agreement to operate

in deepwater offshore Libya. The company signed an exploration and production-sharing agreement (PSA) with National Oil Corp. of Libya for contract area 43. The PSA was part of the countrys re-cently concluded third bid round.

The contract area consists of four blocks with a total area of 7,449 sq km (2,876 sq mi) in the Cyrenaica offshore area of the Mediterra-nean Sea. The block boundaries extend from the coastline to a water depth of about 2,200 m (7,218 ft).

OVLs work program includes acquiring 1,000 km (621 mi) of 2D seismic data and 4,000 sq km (1,544 sq mi) of 3D data, as well as drill-ing an exploratory well during the ve-year exploration phase of the contract. About two-thirds of the contract area has sparse coverage of 2D seismic data. There is also a shallow-water exploration well that es-tablished the presence of hydrocarbons at the southwest boundary.

Libya is reportedly planning to hold another bidding round later this year to develop onshore and offshore gas elds. The round will

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


0 31Miles

0 50Km

Block Q

Block N

Indian Ocean

South China Sea

BORNEO(Kalimantan)

SARAWAK

BRUNEI SABAH

PALAWAN

SINGAPORE

M A L A Y S I A

I N D O N E S I A

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A

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VIETN

AMArea shown

BHP Billiton Ltd. and Petronas Carigali Sdn. Bhd. committed $156.4 mil-lion to explore ultra deepwater blocks N and Q offshore Malaysia.



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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, fixed and floating platforms, pipelines and subsea solutions for today and beyond.

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include 10-15 blocks. Libya has an estimated 100 Bbbl of oil reserves and is looking to

nearly double production in the next ten years.

Middle EastQatar Gas Transport Co. Ltd. (Nakilat) has signed an agreement

with Keppel Offshore & Marine Ltd. subsidiary KS Investments Ltd. to jointly develop a world-class shipyard facility in the Port of Ras Laffan, Qatar.

This agreement is a partnership between a major LNG transporter and the global leader in ship repair, ship conversion, and construc-tion of offshore drilling rigs.

The proposed shipyard will be part of the expansion of the Ara-bian Gulf Port of Ras Laffan and is expected to begin operation in 2010.

The new facility will be suitable for repair and maintenance of very large LNG carriers and a wide range of other vessels and the conversion of tankers to FPSO and FSO vessels. The estimated cost of the shipyard is approximately $450 million.

This business venture is in line with our Near Market, Near Cus-tomer strategy to be close to our customers so that we can better serve them, Tong Chong Heong, managing director/COO of Kep-pel O&M, says.

Nakilat and KS Investments have agreed to form an 80/20 joint venture company to manage the design, construction, and opera-tion of the 43-hectare (106-acre) shipyard, which will be built on re-claimed land. KS Investments will contribute $23 million for its 20% interest in the joint venture.

The name of the JVC is Nakilat-Keppel Offshore & Marine Ltd.

EuropeToreador Resources and TPAO each have reported Black Sea gas

discoveries.Toreador found more gas in the Black Sea offshore Turkey. The Guluc-1 well owed approximately 17 MMcf/d of gas. It was

drilled in a fault-separated prospect along the same trend as the Ak-cakoca-3 and Akcakoca -4 wells in the deeper waters of the SASB project area.

Turkish national oil company TPAO reportedly tested 6.8 MMcf/d of gas at the Alapli-1 well northeast of the Akkaya eld and adja-cent to the SASB area.

AfricaMost of the big West Africa news at the beginning of 2007 was

offshore Angola, but more recently, the spotlight has moved north to Nigeria.

In late 3Q, Eni signed a production-sharing contract (PSC) with Nigerian national oil company NNPC for the OPL 135 exploration license. The area lies northeast of the Niger Delta near the Kwale/Okpai treatment plants, operated by Eni.

The PSC has a duration of 25 years. The rst ve years will be de-voted to the exploration phase, and the following 20 to development and production, with a contractual option of putting gas discoveries into production.

Through this acquisition, Eni plans to promote increasing involve-ment of local companies in the domestic market, with the main ob-jective of eliminating gas aring.

Eni will operate OPL 135 activities through NAOC. Eni has a 48% stake in the block. Partners include Nigerian companies Global En-

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_____________

G L O B A L E & P

ergy Co. with 42% interest and BLJ En-ergy with the remaining 10% interest.

Offshore Namibia, Tullow Oil is drill-ing again on the potentially giant Kudu gas eld.

Exploration and analysis to date sug-gest reserves of at least 3 tcf, with poten-tial for up to 9 tcf. The parts of the res-ervoir drilled so far have achieved good ows, but Tullow wants to test other sec-tions in a different geological setting.

Depending on the outcome of the two-well appraisal program, development could be expanded from the present option of fu-eling a gas-to-power project on the border with South Africa, to an export project, pos-sibly involving LNG.

Tullow is negotiating to bring in a po-tential partner and expects to conclude ar-rangements before drilling the rst well.

Central Europe/CaspianDragon Oil is embarking on a three-

rig development campaign in the Turk-men sector of the Caspian Sea. The project will involve deployment of one jackup and two platform-based rigs.

The jackup will drill several wells from the Lam A platform this year. The plat-form-based rig CIS-1 is scheduled to arrive onsite this spring. Meanwhile, Dragons own platform-based Rig 40 is undergoing refurbishment. Rig 40 is expected to begin drilling in the spring as well.

In addition to the drilling program, Dragon is planning a sustained program of workovers through 2007.

Between 2007 and 2009, the company plans to drill up to 25 development and appraisal wells, subject to rig availability, leading to a 25% year-on-year increase in its crude production. Dragon also ex-pects to spend around $500 million over this period on new production platforms, offshore facility upgrades, new pipelines, and enhanced export capability.

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Houston Branch:Westmark BVStationsweg Oost 281D3931 ER Woudenberg - NetherlandsTel: +31.33.4614844Fax: +31.33.4612461email: [email protected]

Intrepid Industries Inc.2305 S. Battleground RoadLa Porte, TX 77571-9475Phone: +1 281 479-8301 Fax: +1 281 479-3453E-Mail: [email protected]: www.intrepidindustries.com

MOLEC A.S.Emma Hjorts Vei 741336 Sandvika NorwayPhone +47 67 15 11 57Fax +47 67 15 33 49

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0 124

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Tullow Oil is drilling again on the potential-ly giant Kudu gas fi eld offshore Namibia.



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Total pounces on JuraTotal is developing its Jura gas-conden-

sate eld in the northern North Sea, just four months after its discovery. With re-serves of over 170 MMboe, this appears to be the UKs largest new eld development since Nexens Buzzard.

For Total, the main motivation is maximiz-ing throughput in its Alwyn Area infrastruc-ture. Juras production will head through a 3-km (1.9-mi) pipeline to the Forvie North subsea wellhead, itself connected to the Al-wyn North processing platform. After com-ing onstream in spring 2008, Juras output should peak at 45,000 boe/d. Total plans fur-ther exploration in this area on the Jura East prospect.

In the UK central North Sea, Oilexco has delivered yet another discovery with its sus-tained drilling campaign, this time on the Kildare prospect in block 15/26b. The Cana-dian operator was awarded the acreage joint-ly with Nexen under the UKs 23rd offshore licensing round.

The semisubmersible Ocean Guardian drilled the well to a TD of 14,330 ft (4,368 m), encoun-tering 27.7 m (91 ft) of net pay in Upper Jurassic sands. On test, the well owed 4,216 b/d of oil and 3.1 MMcf/d of gas via a 64/64-in. choke.

The partners plan further drilling to appraise the extent of the oil accumulation.

In the UKs southern gas basin, EnCore Oil and Star Energy are considering the con-version of three decommissioned elds for use as a seasonal gas store. Esmond, Forbes and Gordon were developed jointly by Ham-ilton Oil. Esmond, the largest accumulation, had original reserves of 250 bcf. Star plans to acquire low density 3D seismic over the three elds. According to EnCore CEO Alan Booth, It has long been known that the UK lags much of Europe in the provision of gas storage. This project has the potential to more than double the UKs gas storage ca-pability.

However, according to a recent presen-tation in London by Tullow Oil, storage was not an issue this winter past, due to a sudden in ux of gas from new suppliers in Norway and The Netherlands. More of a concern was the resultant depression of UK gas prices, although rates have risen since. High rig rates also worried the companys chief executive Aidan Heavey. In our view, these are having a detrimental effect on the mature parts of the UK North Sea, causing some North American companies to scale back their drilling plans, he said.

Hydro ups recovery targetHydro has made a small oil discovery

southwest of its producing Grane eld in the Norwegian North Sea. The semisubmers-ible Transocean Winner found oil in Jurassic sandstone, but only traces of hydrocarbons in the primary Tertiary target.

In the Troll production license, Hydro has agreed long-term contracts with Awilco Offshore for two new rigs, to be built by Yantai Raf es Shipyard in China. These should start operating on Troll in 2009 and 2010. Each will drill development wells for a period of at least ve years. Hydros latest long-term plan for Troll involves increasing oil recovery by 30% to over 2 Bbbl. So far, 113 wells have been drilled to drain the eld, many of which are multilaterals with two and six branches.

Hook Head awaits PetroliaProvidence Resources plans to re-explore

Marathons 1971 Hook Head discovery off southern Ireland. The Dublin-based compa-ny has secured the semisubmersible Petrolia for a 50-day slot this summer to drill an ap-praisal well on the structures crest.

Hook Head is a large, mid-basinal anti-cline beneath 80 m (262 ft) of water in the

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O F F S H O R E E U R O P E

North Celtic Sea basin. The discovery well logged around 100 ft (30 m) of hydrocarbons in ve Lower Cretaceous sandstone layers. An-other Marathon well in 1975 successfully delineated more reserves at the structures down-dip edge.

Providence newly acquired seismic puts the crest around 2 km (1.2 mi) northwest of the 1971 well, and at a location 70 m (229 ft) higher. The company believes in-place reserves could be around 70 MMbbl, or 250 bcf.

In St. Georges Channel, towards Wales, Providence has gained an extension to its licensing option 05/3 from the Irish authorities until end-September. The acreage contains the Apollo prospect, also identi ed by Marathon in the 1990s following a 2D seismic survey.

New in-house mapping suggests Apollo may hold up to 300 MMbbl in Lower Jurassic sands, with further upside in Upper Jurassic se-quences. Marathons nearby Dragon discovery from 1994, off west Wales, ow tested at 20 MMcf/d. Providence will use the extension to conduct further subsurface work, and to seek farm-in partners.

Viking set to revive PeakLundin Petroleum is combining its UK and Norwegian North Sea

businesses into a new company, Viking Oil and Gas. Just over half of Vikings shares will be offered to investors via a planned listing on the Oslo Stock Exchange.

The new operation will be headquartered in Oslo, with a branch in Aberdeen. With forecast production of over 20,000 boe/d this year, it will rank in the top tier of Norwegian independents after Statoil/Hydro. Lundin puts Vikings net proven and probable re-serves at 96.6 MMboe, with 974 MMboe of net unrisked prospec-tive resources.

Among its undeveloped properties are Peik, formerly operated by Total, which straddles the UK/Norway North Sea median line. Viking owns 50% of the Norwegian side, with further interests in two blocks containing the UK section. Recently, Canadas Bow Val-ley Energy farmed in to both sets of licenses.

The latter has become a specialist in cross-border projects in this region, also involved in the current Enoch and Blane developments. The company believes the partners will push for development to start next year, via a subsea tieback to Alvheim or Heimdal on the Norwegian side, or to Bruce or Beryl in UK waters. Another gas dis-covery in block 9/10b West could also be factored in. Field analysts ScanBoss put Peiks recoverable reserves at 20 MMboe.

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Providences Hook Head fi eld offshore southern Ireland.



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Marathon strikes oilMarathon Oil Corp. hit pay with Droshky No. 1 in Green Canyon

block 244 in 2,900 ft (884 m) of water. The discovery well, drilled 137 mi (220 km) south-southwest of Venice, Louisiana, logged 250 ft (76 m) of net oil pay, according to Marathon.

The preliminary results suggest that the Droshky No. 1 is a com-mercial discovery with development likely through the Troika Unit infrastructure, which is 2 mi (3 km) from the Droshky well, says Philip G. Behrman, Marathon senior vice president of Worldwide Exploration.

Troika is a subsea eld in Green Canyon block 244 in 2,700 ft (823 m) of water. The eld produces through the Shell-operated Bullwinkle platform.

At print, Marathon was drilling two sidetracks on Droshky to de-termine the elds commercial extent.

Marathon holds a 100 % working interest in Droshky No. 1 and a 50 % interest in the Troika Unit.

Application led for LNG port off FloridaHegh LNG AS subsidiary Port Dolphin Energy Llc. has led an

application with the US Coast Guard for approval to build and oper-ate an LNG port 28 mi (45 km) off the west coast of Florida.

The proposed project consists of two submerged turret unloading and mooring buoys to receive an average of up to 800 MMcf/d of natural gas from LNG shuttle and regasi cation vessels (SRVs), and a 42-mi (68-km) offshore pipeline to bring the natural gas from the proposed terminal to Port Manatee in Tampa Bay. The port will have a peak delivery capacity of 1.2 bcf/d.

This is an important milestone in Hegh LNGs effort to continue the development of our SRV strategy, where we provide transport, regasi cation, and market access for our customers, says Sveinung

Sthle, president and CEO of Hegh LNG AS.Hegh LNG has two SRVs on order with Samsung Heavy Indus-

tries for delivery in 2009 and 2010 to serve Suez LNG Tradings Neptune deepwater port, a similar offshore LNG terminal slated for Massachusetts Bay, near Boston.

Deepwater contractsBHP Billiton and Shell have awarded subsea contracts for the

Shenzi and Princess deepwater developments. BHP issued the Shenzi contract to Saipem America Inc. The contracted workscope includes transportation and installation of subsea equipment: installation of three combined electro-hydraulic dynamic umbilicals; design, fabri-cation, and testing of rigid subsea jumpers and nine suction piles; and installation of 66 ying leads, three manifolds, and eight SCR spool pieces on the Shenzi TLP.

Saipem will use a mix of construction vessels from its in-house eet and outside contractors to complete the work between Febru-ary and November 2008.

The company contracted Aker Marine Contractors Inc. to per-form portions of the design and engineering work on Shenzi, includ-ing use of the DP-3 BOA Sub C construction vessel.

The Shenzi eld is in Green Canyon blocks 609, 610, 653, and 654 in 4,400 ft (1,341 m) of water, approximately 120 mi (193 km) offshore. Partners in the development include Hess Corp. and Repsol YPF.

Shell awarded the Princess contract to Technip. The contract covers project management, engineering, fabrication, and installation of ow-lines and steel catenary risers, and installation of pipeline-end-termina-tions. Installation is scheduled for the fourth quarter of this year.

The Princess development comprises tieback of four subsea wa-ter injection wells to the Shell-operated Ursa TLP moored in Missis-sippi Canyon block 854 in 3,780 ft (1,152 m) of water.

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


Rendering of Hegh LNGs Port Dolphin Energy LNG facility, proposed for installation off the west coast of Florida.



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Hurricanes Katrina and Rita created catastrophic damage to over 100 platforms. An estimated 1000 wells were put out of commission. Wellheads collapsed to the ocean oor, and mangled casing strings were entangled with platform substruc-ture. Well re-entry often seemed impossible. And wide-spread environmental damage appeared imminent. There was no ready-made solution for this uncommon occurrence.

Wood Group Pressure Control engineers responded, adapting our surface casing connectors into an efcient, low-cost, diver-assisted subsea de-completion system. In short order, the design was prototyped, lab tested and placed into service.

Although hundreds of offshore wells have been controlled, work employing this common-sense solution will continue for several more years until all damaged wells are secure. Safety is essential. Speed desirable. Reliability mandatory.

To learn more, visit our web site atwww.wgpressurecontrol.comE-mail us at [email protected] telephone +1 832.325.4200

Wood Group Pressure ControlRedening Surface Wellhead Technology

The LRC underwater de-completion system with removable control module and weld-less casing connection.

An uncommon problem. A common-sense solution.




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Technip in Houston will execute the contract; Technip in Mobile, Alabama, will assemble the pipe stalks, and pipelay vessel Deep Blue will de-ploy the pipelines in a reel lay form.

Shell-operated Princess is a sub-salt accu-mulation in Mississippi Canyon block 765 in 3,610 ft (1,100 m) of water.

Meanwhile, Aberdeen-based International Moor-ing Systems (IMS), part of the Craig Group, is sup-plying its H-link connectors to an unnamed operator in the Gulf of Mexico, under contracts worth more than 2 million ($4 million).

The 3-metric ton (3.3-ton) connectors allow lengths of chain and mooring line to be grouped together for anchoring oating production units and semisubmersible rigs in deepwater.

According to IMS, the H-Link connectors extend the life and integrity of mooring lines and chain by avoiding the use of other chain material as a binding and anchoring device, which could cause abrasion leading to deterio-ration reducing the life of the mooring line.

The connectors will be manufactured in the UK for scheduled installation in the GoM this year.

These new contracts show exactly why we moved to invest in developing new technolo-gies and equipment, as the industry looks to install the latest systems to ensure its assets and investments are protected in the GoM, says Alan Duncan, IMS managing director.

Range sells shallow water properties

Range Resources Corp. has sold its GoM properties to a private company for $155 million.

The properties include Ranges interests in 37 platforms in water depths ranging from 11 to 240 ft (3 to 73 m). At year-end 2006, Range estimated the properties contained proved reserves of 40 bcfe. The properties were not integral to our future growth, so we elected to monetize them, says John Pinkerton, Range president and CEO.

Caesar backlog lling upHelixs latest deepwater construction vessel, Caesar, will have

plenty of work lined up when it enters the companys active eet in late-2007/early-2008. The $138-million vessel is undergoing conver-sion at COSCO shipyard in Shanghai.

The company has secured one external contract and one in-house commitment for the vessel in 2008. The outside job was awarded by Murphy E&P Co. The operator issued a letter of intent to Helix for installation work on the Thunder Hawk eld in Mississippi Canyon block 736 in 6,100 ft (1,859 m) of water.

The contracted workscope includes installation of two 8-in. (203-mm) owlines and two 12-in. (305-mm) export pipelines, with as-sociated steel catenary risers and pipeline-end- terminations. The work is scheduled for mid-2008.

The execution of the LOI for Thunder Hawk constitutes a major milestone for Caesar and our company, says Bart Heijermans, Helix executive VP and COO. We are very pleased with the level of inter-est in the vessel and are con dent that this asset will become a major contributor to our company and the industry.

Caesar also is scheduled to install the owline for Helixs Noonan discovery in Garden Banks block 506 in 2,700 ft (823 m) of water. Installation is scheduled for the rst half of 2008.

Meanwhile, Helixs deepwater reel lay vessel, Intrepid, completed installation of Shell Offshore Inc.s Crosby Pastel Pink pipe-in-pipe (PIP) owline system. This project was the companys rst PIP sys-tem that it constructed and installed, according to Helix.

The companys workscope included construction and installation of the 4-in. (102-mm) x 8-in. (203-mm) PIP and pipeline-end-termina-tion from Mississippi Canyon block 899 to MC 898 in 4,000 ft (1,219 m) of water. Installation was completed in mid-2007.

US Steel to acquire Lone Star Technologies

United States Steel Corp. will acquire Lone Star Technologies Inc. for $2.1 billion in cash.

US Steel says it expects the acquisition of Lone Star to strengthen its position as a producer of tubular products for the energy sec-tor and will create North Americas largest tubular producer, with manufacturing capacity of 2.8 million tons (2.5 million metric tons).

This transaction represents a compelling strategic opportunity for US Steel to strengthen our position as a supplier to the robust oil and natural gas sector by signi cantly expanding our tubular prod-uct offerings, our production capacity and our geographic footprint, says John P. Surma, US Steel chairman and CEO.

Our complementary strengths will better position Lone Star to pursue signi cant new growth opportunities for the bene t of our customers, distributors and end users, says Rhys Best, Lone Star chairman and CEO.

Under the terms of the de nitive agreement, US Steel will acquire all outstanding shares of Lone Star for $67.50 per share in cash an aggregate value of approximately $2.1 billion.

The companies boards have approved the acquisition, but it still is subject to the approval of Lone Stars shareholders and other custom-ary closing conditions, including regulatory approvals. The transac-tion is expected to close in the second half of this year.

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


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Hydro contracts riserless mud systemNorsk Hydro ASA has awarded a NOK 4.5 million ($750,000) con-

tract to AGR Group ASA for riserless mud recovery equipment and services covering one well in the Fram eld of the North Sea. This would be the second Norwegian continental shelf well drilled using riserless mud handling equipment.

Alve PDO approvedStatoil has received ministerial approval of its plan for develop-

ment and operation of the Alve gas/condensate eld in the Norwe-gian Sea. For the rst time, Statoil had submitted a simpli ed PDO.

The plan calls for Alve drilling to begin in August with rst produc-tion in December 2008. Total investment is estimated at NOK 2.4 bil-lion ($392 million). Alve will tieback to Statoils Norne eld and will be developed with one subsea template holding four drilling slots.

The Alve eld lies in production license 159B, 16 km (10 mi) south-west of Norne in 390 m (1,280 ft) of water. It comprises the Garn, Not, Ile, and Tilje formations, with proven reserves in Garn and Not. Recoverable reserves are estimated at 6.78 bcm (239 bcf) of gas and 8.3 MMbbl of condensate.

Statoil holds 75%, Danish Oil and Natural Gas (Dong) 15%, and Hydro 10%.

Maersk Oil Qatar awards pipeline contractMaersk Oil Qatar AS has awarded the National Petroleum Con-

struction Co. of Abu Dhabi the pipeline contract for block 5 develop-ment at Al Shaheen eld.

Scope of work includes design, engineering, procurement, fabrica-tion, offshore installation, and testing of 260 km (162 mi) of submarine pipelines ranging in diameters from 152 mm (6 in) to 610 mm (24 in), in addition to 60 km (37 mi) of submarine power and communication cables, and associated works. Water depths range from 52 m (171 ft) to 70 m (230 ft).

The rst work is scheduled for completion by the end of 2007 and the remainder by mid-2009.

Subsea 7 lands ROV contractsSubsea 7s i-Tech division has won two ROV contracts. One is from

Shell Brasil Ltd. for $12 million covering two ROVs for a semisubmers-ible drilling rig and an anchor-handling tug working for the BC10 proj-ect in Campos basin. The contract begins in mid-year and runs for three years. Water depths are 1,700 m to 2,000 m (5,577 ft to 6,562 ft).

These are the rst Centurion QX ROVs to be deployed in Bra-zil and both systems have been modi ed to meet project speci c requirements including the provision of garages instead of tether management systems. In addition, an extensive suite of tooling is required including the design and build of anchor suction skids.

The second contract, for $5 million, is from Apache Energy Ltd. for ROVs on two semis drilling offshore Exmouth, Australia. The rst drilling rig, using a Warrior ROV system, started in February for a du-ration of ve months. The second project, using a newbuild Centurion QX began in March for a duration of approximately 18 months.

Both rigs are in 500 m (1,640 ft) water depths.

Statoil developing deepwater pipeline repair robot

A pipeline repair robot for 1,000 m (3,281 ft) water depths is under development by Statoil. The remotely operated welder is scheduled for testing and emergency response deployment this year.

Measuring about 4 m (13 ft) long by 2 m (6 1/2 ft) high, the new welding machine has been developed by Statoil and built in coopera-tion with external suppliers.

The robot cuts out the damaged pipe section before welding in a new piece inside an enclosed habitat. Systems are provided for preheating and controlling the habitat atmosphere.

Work on the new device is taking place in Haugesund north of Stavanger, where Statoils pipeline repair system pool is located.

The robot will join other remotely operated tools used in deep-water operations, including tie-in of new pipelines in water depths beyond the reach of divers.

Petrobras awards subsea manifolds to FMCPetrobras has awarded $52-million contract for two subsea gas

gathering manifolds for the offshore Brazil Plangas project to FMC Technologies Inc.

Each of the two manifolds will have eight 10-in (254-mm) inlets and two 16-in (406 mm) outlets operated by multiplexed subsea con-trol systems. Once installed, the manifolds will permit gas exports from Roncador, Albacora East, and other Campos basin elds start-ing in 2008, Petrobras says.

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


Development plan for Alve in Norwegian Sea approved.

CPCC wants deepwater technology introductions

China Petroleum & Chemical Corp. will be pushing its foreign partners and prospective partners for more introduc-tions to deepwater technological solutions for exploration and production, according to Sinopecs assistant chief engineer.

Ge Weimin reportedly told Asian reporters that We (Sino-pec) hope that in all cooperation with foreign oil fi rms we get more deepwater technological and management knowledge.

He stopped short of saying that cutting-edge technological learning opportunities would be an essential part of any contracts.

Statoil pipeline welding robot being developed.



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Bourbon expands eetBourbon is adding to its eet to serve the

offshore industry, placing orders in 1Q 2007 for 46 next-generation vessels to be deliv-ered over the next four years.

The additions to the eet, Bourbon says, are innovative high-productivity vessels that will assist oil industry clients in developing continental-shelf and deepwater elds.

Bourbon has offered what the company re-fers to as three series of offshore service ves-sels, comprising 46 units at a cost of $7,300 million.

Bourbon says 44 vessels will come from the Sinopaci c shipyards in China and two from the West Atlantic Shipyard in Nigeria.

The two series vessels will be based on the GPA design identical to the 36 vessels ordered by Bourbon in April of last year:

28 AHTS GPA 254 supply and anchor-handling tugs with 72.5 metric tons (80 short tons) traction

14 PSV GPA 654 platform supply ves-sels with 1,600 tons dwt.

All of the new vessels are intended for the replacement market operating in the continental offshore in which more than 400 vessels now in service will be over 30 years old by 2010. The characteristics of the new vessels will also make them excellent addi-tional supply vessels for deepwater offshore operations, Bourbon says.

In addition to the three series and two se-ries vessels, the company also is building one series vessels, including four PSV, Ulstein PX105 MACS supply vessels. The PSVs will be 88.8 m (27 ft) long with 4,400 dwt.

The series includes two major innova-tions, Bourbon says. One is the positioning of engine exhaust on the water line, which does away with the funnel and allows a 360 panoramic view from the bridge. The second innovation is a multi application cargo solu-tion (MACS) system that increases storage capacity in the hold and enables different types of cargo to be stored.

These vessels satisfy the precise needs of the international deepwater and North Sea offshore industry, while offering extremely pro table technological solutions to custom-ers, the company says.

Orders placed as of Feb. 28, 2007, bring Bourbons offshore division eet to 110 sup-ply vessels on order. Deliveries will be made up to September 2011.

New heavy-lift vessel for GoMIn early 1Q 2007, Crowley Maritime Corp.

christened the Marty J, the rst of three Heavy Lift 455 series barges under construction at Gunderson Marine in Portland, Oregon.

The three 122 m x 32 m (400 ft x 105 ft) deck barges are to be used for project work in the GoM.

The Marty J will work as a support vessel for deepwater projects.

According to Crowley, the vessels deck size and 7.6-m (25-ft) side shells provide both the capacity and deck strength needed to accommodate large offshore structures.

The barges will also be suitable for use in other regions, including Alaska, the com-pany says.

Drillship undergoes upgradeAban Offshore Ltd. subsidiary Aban Abra-

ham Pte. Ltd.s Aban Abraham deepwater drillship is undergoing extensive refurbish-ment and modi cation at the Sembawang Shipyard in Singapore.

The Aban Abraham was built in Holland in 1976 as a world-class second-generation drillship named the Pelerin. The vessel was operated from 1976 to 2002 in water depths to approximately 1,400 m (4,600 ft) offshore West Africa, Norway, Eastern Canada, and Brazil. It was cold stacked from 2002 until 2006, when it was purchased by Aban.

When refurbishment is completed later this year, the drillship will be capable of drilling in water depths to 2,100 m (6,900 ft). Once com-missioned, the Aban Abraham is scheduled to be on contract for a third-party operator be-fore beginning a drilling campaign in the Gulf of Guinea for Addax Petroleum.

Lamprell lengthens order book

The UAEs Lamprell Plc. has landed $84.5 million in new contract awards.

One of the awards is a rehabilitation proj-ect for the Nabors 660 jackup, which was

damaged when Hurricane Katrina swept through the Gulf of Mexico in 2005.

The initial $43-million contract is for the comprehensive rehabilitation of the jackup. An additional work scope, with an antici-pated value of $25 million, is under develop-ment and has not yet been approved.

Nabors acquired the rig, originally named Ocean Warwick, and transported it via the 22,000-metric-ton (short ton) deck capacity Hamriyah Pride, a semisubmersible barge owned and operated by Lamprell to the Lam-prell facilities in the UAE. The rig arrived at Hamriyah on Nov. 11 2006.

The contract includes removing storm damaged materials, fabricating a replacement drill oor, legs, spud cans, and sponsons, re- tting the living quarters, and installing ve new engines and a complete drilling package. The project is expected to be completed in November 2007.

Lamprell also was awarded a $36-million contract to refurbish four GlobalSantaFe jack-ups, also damaged in the GoM. The rigs were scheduled to arrive in Lamprells Sharjah yard in mid-January 2007.

The refurbishment work was scheduled to be completed in April 2007 and the units deployed to Saudi Arabia on long-term char-ter for Saudi Aramco.

The third 4Q 2006 award was for topside modules for the Smart 1 FPSO. Aker Float-ing Production contracted for $5.1 million in fabrication from the Lamprell yard.

This contract marks Aker FPs rst FPSO award to Lamprell.

The project scope covers fabrication of the main process module, two riser balconies,

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


The Marty J will work as a support vessel for deepwater projects.



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__________

and the knock out drum skid. The award also includes an extension option to build the topsides for Aker FP Smart 2 FPSO. All elements will be fabricated at Lamprells off-shore construction facility in the Jebel Ali Free Zone in Dubai. Work is scheduled for completion in Nov. 2007.

The Smart FPSOs are a modular design suitable for production of up to 60,000 b/d of oil. The FPSOs are suitable for producing medium-sized elds around the world and are a viable alternative to typical early pro-duction systems, Lamprell says.

Keppel delivers Vietnams rst fully-owned rig

Keppel Offshore & Marine Ltd. subsidiary Keppel FELS Ltd. has delivered the PV Drill-ing I, a KFELS B Class jackup rig, to PetroVi-etnam Drilling and Well Services Joint Stock Co.

The jackup was delivered two months ahead of time and within budget, Keppel says.

Built to Keppels proprietary design, the KFELS B Class rig is PV Drillings rst new-build jackup. The PV Drilling I is the thir-teenth KFELS B Class jackup rig delivered since the introduction of the design in 2000.

The PV Drilling I is customized to PV Drill-ings speci cations for operations in water

depths to 91 m (300 ft) and drilling depths to 6,096 m (20,000 ft). The rig has accom-modations for 110 and is readily upgrade-able for higher drilling capabilities in water depths to 107 m (350 ft). The jackup will be-gin working for the Hoan Vu Joint Operating Co. offshore Vietnam in October.

Global Resources reactivates rig

Global Resources Engineering project servic-es division has completed a reactivation program onboard the Essar Oil semisubmersible drilling rig Essar Wildcat, formerly the Transocean Wild-cat. Essar Oil awarded the $50-million contract in Dec. 2006. The semi had been cold stacked in the Cromarty Firth, Invergordon, since 2002.

The contract lasted ten weeks and involved more than 260 personnel at peak operation, says Terry Lelean, senior project manager.

The rst step in

Documents

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