Gom Deepwater News

Gulf of Mexico vessel builders – and their customers – adapt to a lean offshore market. After oil prices plunged in late 2014 – pressured by shale output – demand for offshore vessels in the Gulf of Mexico shrank, day rates for boats fell and non-working units were idled. This year, several GoM boat builders filed for Chapter 11, or voluntary bankruptcy, while others consolidated. The most diversified companies kept their heads above water. Today, the outlook's a bit brighter. Crude oil prices hit bottom early last year. Tidewater Inc.

Total announced that its subsidiary, TOTAL E&P USA, INC., has entered into an agreement to capture seven prospects operated by CHEVRON U.S.A. INC. in the deepwater Gulf of Mexico. The agreement covers 16 blocks. The associated prospects are located in two promising plays and areas of the GoM: Wilcox in Central GoM next to the Anchor discovery, and Norphlet in Eastern GoM nearby to the Appomattox discovery. Total’s participation in these wells will be between 25 percentand 40 percent.The first of these wells was spudded late July on the Ballymore prospect in Mississippi Canyon. “This agreement, together with the recently announced participation in the Jack field as part of the Maersk Oil acquisition…

Oceaneering International, Inc. (NYSE:OII) has announced that it has entered into a five-year charter for use of the Cade Candies, a multi-service subsea support vessel owned by Otto Candies LLC. The charter is expected to commence during the second quarter of 2013. This state-of-the-art, U.S. flagged vessel was built in 2010. It has an overall length of approximately 309 feet (94 meters), a Class 2 dynamic positioning system, accommodations for 69 personnel, a helideck, a 150-ton active heave compensated crane, and a working moonpool. Oceaneering's current rolling, short-term charter contract on the Cade Candies, in place since November 2011, will continue through early 2013. At that time, the vessel will enter a shipyard to undergo modifications to enhance its project capabilities.

Growing In Deepwater Gulf of Mexico. As the feds issue more drilling permits for the Gulf, demand for offshore support vessels in the GOM deepwater sector has accelerated, industry members say. Anger about the government's spill-related, drilling moratorium--which ended a year and a half ago--has given way to optimism recently. The region's shallow-water sector, nevertheless remains slow and gives little cause for cheer. Paul Candies, president and chief executive of Otto Candies…

Anadarko Petroleum Corporation has signed agreements with the Marine Preservation Association (MPA) and the Marine Spill Response Corporation (MSRC) to access MSRC’s national and Gulf of Mexico-based dedicated spill response resources for plan citation and spill response services. Anadarko joins other MPA founding members BP, Chevron, ConocoPhillips, ExxonMobil, Murphy, and Shell; and newer members Nexen, Noble, and Statoil, in funding the most extensive surface spill response capability in the Gulf of Mexico. MSRC has just completed a large expansion of its resources and capability in the Gulf of Mexico, with particular focus on the deepwater.

--Senior unsecured notes at 'BBB-'. The Rating Outlook is Stable. Approximately $700 million in total debt is outstanding at SEACOR. SEACOR's ratings are supported by the company's historically stable credit profile, diversity of operations, and the size, diversity and quality of the company's fleet of offshore vessels. The company's conservative credit profile is further supported by management's willingness to maintain large cash and securities balances throughout industry cycles, which have resulted in the company typically maintaining very low (and often negative) leverage levels as measured on a net debt basis. In addition, management retains significant flexibility to reduce capital expenditure levels during industry downturns.

The Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE) today announced the approval of an Initial Exploration Plan (EP), submitted by BHP Billiton, Inc., for activities in deepwater Gulf of Mexico. The EP was completed in accordance with new safety and environmental standards implemented since the Deepwater Horizon explosion and oil spill, and is the first deepwater Initial EP approved to include the completion of a thorough site-specific Environmental Assessment (SEA).

The Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE) announced the approval of a deepwater Gulf of Mexico Exploration Plan (EP) following the completion of a site-specific Environmental Assessment (SEA) for deepwater oil and gas exploration. Shell Offshore, Inc.’s Supplemental EP includes five proposed exploratory wells in approximately 7,160 to 7,259 feet water depth, as well as three previously approved wells approximately 72 miles offshore Louisiana. "This exploration plan was reviewed under the heightened standards we are now using to conduct site-specific environmental assessments,” said BOEMRE Director Michael R. Bromwich.

The Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE) announced the approval of a deepwater Gulf of Mexico Exploration Plan (EP) following the completion of a site-specific Environmental Assessment (SEA) for deepwater oil and gas exploration. Shell Offshore, Inc.’s Supplemental EP includes five proposed exploratory wells in approximately 7,160 to 7,259 feet water depth, as well as three previously approved wells approximately 72 miles offshore Louisiana. "This exploration plan was reviewed under the heightened standards we are now using to conduct site-specific environmental assessments,” said BOEMRE Director Michael R. Bromwich.

Secretary of the Interior Ken Salazar and Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE) Director Michael R. Bromwich announced that the bureau has approved an Exploration Plan, submitted by Shell Offshore Inc., following the completion of a site-specific Environmental Assessment (SEA) for deepwater oil and gas exploration. This is the first new deepwater exploration plan approved since the Deepwater Horizon explosion and resulting oil spill. An exploration plan describes all exploration activities planned by the operator for a specific lease or leases, including the timing of these activities, information concerning drilling vessels, the location of each planned well, and other relevant information that needs to meet important safety standards.

ABS has been named the design certified verification agent (CVA) for the Shell Olympus TLP, intended for installation on the Mars B field in the Gulf of Mexico's (GOM's) deepwater. The tension leg platform (TLP) will be built at Samsung Heavy Industries, Co. Ltd. in Korea. ABS was also selected as the fabrication CVA for the hull and topsides and the installation CVA for the hull, topsides, piles and tendons. Renamed Olympus (originally Mars B), it will be Shell's biggest and the first platform of its type installed in the GOM since Shell completed a wave of five similar TLP installations during the 1990s. It will also be the first four-column TLP to be built under new storm criteria implemented after hurricanes Rita and Katrina in 2005.

Danos & Curole has been awarded a multi-year contract to provide all contract operations and maintenance personnel to BP’s Gulf of Mexico deepwater fields.  With this contract, Danos & Curole will provide skilled personnel of various disciplines to BP’s eight state of the art GOM deepwater assets and the inland facility located in Houma, La. (www.danos.com)

StatoilHydro has together with operator Anadarko and partners made a discovery in the Vito prospect in deepwater Gulf of Mexico. The Vito well is located in Mississippi Canyon block 984, about 70 kilometres southwest of the Thunder Hawk field. The well was drilled to a total depth of 9,757 metres and is believed to have encountered some 80 metres of net pay, although final test results are still pending. "Vito is our second discovery in the Gulf so far this year. Both Heidelberg and Vito are located in the Miocene play, in areas known for good quality sand development," explains Helen Butcher, head of StatoilHydro's exploration in the Gulf of Mexico.

There are 2,511 identified pending, probable and possible subsea production wells forecast (base case) worldwide over the next six years. Some 18 percent of these subsea completions will be installed in North America, 30 percent in Africa/Mediterranean, eight percent in Asia-Pacific, 26 percent in the North Sea and 18 percent in Brazil. These subsea projects are in various development stages, including: 23 percent at the pending/construction stage, 11 percent bidding, 9 percent in detailed engineering, 16 percent at the front-end engineering design (FEED) stage, 16 percent of the wells probable and 26 percent possible indicating possible development in the future.

The advent of FPSO and Shuttle Tankers serving the deepwater fields of the Gulf of Mexico is drawing closer, as oil companies study the most economical means to move product from point A to B, particularly from remote and deepwater portions of the Gulf of Mexico. The GOM region, which has one of the more complex subsea piping systems in the world, is ripe for the shuttle tanker solution as the search for oil and gas pushes further from the shore. The question then does not center on "if," but rather "when." American Shuttle Tankers (AST) is touting its S-S-S, or Separate Storage Shuttling solution. The system is unique in that it works with any floating production system — a key point given the fact that there are zero FPSO projects currently underway — including semisubmersibles…