Bop Stack News

Valaris, the world's largest offshore drilling company by fleet size, is set to lose one of the most lucrative contracts in the offshore drilling industry today after it recently accidentally dropped a blowout preventer stack to seabed offshore Angola.The contract, at a day rate of $620,000 per day, is with the French oil major Total for the drillship Valaris DS-8. The Samsung GF12000 designed drilling rig has been drilling for Total since 2015.As previously reported, Valaris earlier in March said it had accidentally dropped Blowout Preventer Stack to the seafloor of Angola, while the rig was moving between well locations. It then warned the customer might seek to terminate the contract as a result of the incident.In an update on Thursday…

Northern Offshore subsidiary, Northern Offshore International Drilling Company says it has executed a long-term drilling contract with an affiliate of CAMAC Energy Inc. for its drillship 'Energy Searcher'. The contract commits to an initial period of one year, with an option to extend the contact for an additional one-year term. Commencement of drilling activities on the Oyo Field offshore Nigeria is expected during the first half of 2014. The contract value for the first one-year term is just under US$100 million, plus mobilization fees.

On the evening of April 20, 2010, Deepwater Horizon suffered a blowout while drilling in the Macondo Prospect, an area in the Gulf of Mexico 40 miles off the southeast coast of Louisiana. The platform caught fire; two days later, it sank. Numerous attempts were made to seal the well, but oil continued to spew into the Gulf until July 15, when a temporary cap was put in place. Relief wells then pumped concrete into the area underneath the wellhead, and the well was deemed permanently sealed in mid-September.

UK-based Ensco has ordered an additional advanced-capability DP3 ultra-deepwater drillship based on the Samsung GF12000 hull design. The vessel, ENSCO DS-10, will be the eighth Samsung DP3 drillship in the Ensco fleet, further extending the benefits of Ensco’s fleet standardization strategy. It will be built at the Samsung Heavy Industries, Co. Ltd. (SHI) shipyard in South Korea, with delivery scheduled for the third quarter of 2015. The agreement includes an option for an additional drillship of the same design. Ensco Chairman, President and CEO Dan Rabun said, “We continue to see very strong demand for rigs in existing deepwater markets, along with growing demand from emerging exploration areas.

A subsidiary of Seadrill to buy the ultra-deepwater semi-submersible rig 'Songa Eclipse' for a price of US$ 590-million. The rig was delivered from the Jurong Shipyard in Singapore in 2011, and is currently operating for Total offshore Angola on a fixed contract ending in December 2013. In addition Total has three one-year options to further extend the contract. Seadrill intends to take delivery of the rig during December 2012 after which it will have an immediate impact on Seadrill's cash flow and financial results.

The Bureau of Safety and Environmental Enforcement (“BSEE”) issued three significant documents addressing response, enforcement, and safety issues related to offshore operations in August 2012. Specifically, BSEE issued (1) new guidance concerning regional Oil Spill Response Plans (“OSRPs”), (2) formalized policy addressing direct enforcement actions against contractors engaged in offshore activities, and (3) a Final Rule implementing new safety measures related to well control operations occurring on the outer continental shelf (“OCS”). The following is a summary of these new developments.

Seadrill has entered into a turnkey contract to build a new ultra-deepwater drillship at the Samsung yard in South Korea, for 2014 delivery. The project value price is estimated to be around US$600 million (including project management, drilling and handling tools, spares, capitalized interest and operations preparations) with tail-heavy payment terms payable upon delivery, which is scheduled within the fourth quarter 2014. The drillship will be of the same design as the existing six drillships under construction at Samsung and will have a hook load capability of 1,250 tons and a water depth capacity of up to 12,000 feet targeting operations in areas such as the Gulf of Mexico, Brazil and West and East Africa.

Norway's Northern Offshore, Ltd announce that the last two wells of a 4-well program will not be drilled at the present time. The Joint Operating Company Vietgazprom, a joint venture between Petrovietnam and Gazprom, ("VGP") has given notice that the last two wells will not be drilled at present. The second and final well under the current contract is expected to be completed by late September 2012. However, the Company and VGP are currently in discussion to formally suspend the contract to allow for the drilling of the two remaining wells during 2013…

Ensco plc has has ordered a new advanced-capability, ultra-deepwater drillship to be built at the Samsung Heavy Industries, Co. Ltd. (SHI) Shipyard in Geoje, South Korea. The vessel, ENSCO DS-8, will be the sixth Samsung DP3 drillship in the Ensco fleet, extending the benefits of Ensco’s fleet standardization strategy. It is scheduled for delivery in the third quarter of 2014. Including commissioning, systems integration testing, project management and spares, the construction cost is expected to be approximately $645 million. Consistent with the previous five Samsung ultra-deepwater drillships ordered since 2007…

Seadrill has entered into turnkey contracts to build two new ultra-deepwater drillships at Samsung in South Korea. The construction of the drillships is scheduled for completion in the second and third quarter 2014. Total project price per drillship is estimated to be under US$600 million, which includes a turnkey contract with the yard, project management, drilling and handling tools, spares, capitalized interest and operations preparations. Seadrill has also a fixed price option to order an additional drillship for delivery in 2014. The drillships are of the same design as the three previous dual derrick drillships that Seadrill ordered at Samsung late 2010 and early 2011, with increased water depth, technical capabilities and accommodation capacities.

GE Oil & Gas' Drilling & Production business has received two contracts totaling more than $120m from Daewoo Shipbuilding & Marine Engineering Co., Ltd of South Korea, engaged in building ships and offshore structures. Under the first contract, GE will supply a blowout preventer (BOP) stack and controls system, to be installed on a Petroserv-owned drillship for oil and gas production activities offshore Brazil. In addition, GE has been selected to supply two complete drilling packages to be installed on Odebrecht Oil & Gas owned drill-ships, each including a 10,000-ft riser system and BOP stacks and controls. GE Oil & Gas manufacturing plants in Houston…

American International Industries, Inc. announced that Subsea Oil Technologies, Inc., 50% owned by AMIN, has been assigned U.S. patent application number 12/822,324 entitled "Method and Apparatus for Containing an Undersea Oil and/or Gas Spill Caused by a Defective Blowout Preventer (BOP)," filed on June 24, 2010. The prosecution of the patent application at the United States Patent and Trademark Office (USPTO) has been entrusted to the law firm of Volpe and Koenig, P.C., which is located in Philadelphia, Pennsylvania. Mr. Dror stated, "We believe that the invention disclosed by this patent application (the "BOPstopper") is one of the first to be filed at the USPTO to specifically present possible solutions to contain oil and/or gas spills…

Under the direction of National Incident Commander Admiral Thad Allen, the Flow Rate Technical Group (FRTG), which is led by United States Geological Survey Director Dr. Marcia McNutt, and a scientific team led by Energy Secretary Steven Chu are analyzing new data and bringing together several scientific methodologies to develop an updated estimate of how much oil is flowing from BP’s leaking oil well in the Gulf of Mexico. The updated estimate, which will bring together the ongoing work of scientists and engineers from the federal government, universities, and research institutions, will be of how much oil has been flowing since the riser was cut on June 3.

The Department of the Interior issued a directive to oil and gas lessees and operators on the Outer Continental Shelf implementing stronger safety requirements that Secretary of the Interior Ken Salazar recommended in his 30-day safety report to the President. The Notice to Lessees focusing on safety measures (Safety NTL) issued applies to both deepwater and shallow water operations, although drilling operations in water deeper than 500 feet remain under a six-month moratorium. Shallow water drilling operations and production activity in both deep and shallow waters are not under a moratorium and will continue, provided they are in compliance with the new safety requirements.

On April 20, 2010, a loss of well control occurred and resulted in an explosion and fire on the Mobile Offshore Drilling Unit Deepwater Horizon. Eleven lives were lost in this incident and the MODU subsequently sank. As of the date of this safety alert the well has not been secured, and the resulting release of oil has been declared a spill of national significance with oil threatening sensitive coastlines and resources in the Gulf of Mexico. At the time of the accident, the Deepwater Horizon was operating 52 miles from shore in 4,992 feet of water with a subsea BOP stack. After the Deepwater Horizon sank, ROV's confirmed that the riser was bent over and still attached to the BOP and that oil is flowing from leaks in the riser above the BOP.