Fitch: Maersk Gets Little Solace from Sectoral Diversification
The decision by A.P. Moeller-Maersk A/S to split into two separate divisions - Transport & Logistics and Energy - reflects the challenging fundamentals in the sectors in which it operates, and diminishing counter-cyclical benefits of operating in them in the current economic cycle, Fitch Ratings says. We do not expect the split to significantly improve the performance of the group's separate units, although the increased focus may help long-term strategy execution. We believe…
China, Russia Begin South China Sea Drills
China and Russia began week-long joint naval exercises in the South China Sea today. It is the first-ever South China Sea iteration of Beijing and Moscow Joint Sea exercises. The Joint Sea-2016 exercises between the two countries will involve surface ships, submarines, fixed-wing aircraft, helicopters, and amphibious vehicles, according to a Defense Ministry statement issued Sunday. The exercises will conclude on September 19. The navies jointly launched eight days of war games, in a sign of growing cooperation between their armed forces against the backdrop of regional territorial disputes.
Bureau Veritas Extends Class to Offshore Drilling Safety
International classification society Bureau Veritas has extended its classification rules to include the items of drilling equipment which are essential for the safety of offshore drilling operations. These rules cover well control equipment including Blow-Out Preventers, marine risers, tensioning systems, heave-compensation systems, drawworks, mud circulating systems, cementing equipment, drilling derrick and supporting structures. Offshore drilling operators can turn to one body to assess the entire drilling unit and equipment under one integrated approach.
Chinese Shipyard COSCO Gets Order for Offshore Drill Rig
COSCO (Nantong) Shipyard Co. Ltd., a subsidiary of COSCO Shipyard Group Co. Ltd., has secured a contract with SEADRILL to construct a self erecting tender drilling rig T18 valued at USD 75 million, excluding owner furnished drilling equipment. The new drilling rig, T18, when completed, will be equipped with enhanced drilling capabilities allowing for higher drilling efficiency including the advantage of a light weight drilling equipment set. The rig is capable to drill at 6,500 feet and a drilling depth capacity of 20,000 feet. SEADRILL has now exercised the last of the options awarded by COSCO. SEADRILL was awarded altogether two options (over T17 and T18) in February 2011 when T15 and T16 were contracted. The option over T17 was exercised in April 2011, as announced on 13 April 2011.
Super Barge Touted For Strengths, Depths
Employed in the oil and gas industry for 60 years, simple and sturdy swamp and posted drilling barges have been a preferred method to drill in shallow water. This basic design has made it possible for the barge to drill in water depths from six through 24 ft., as well as the ability to be towed and to travel the Intercoastal waterway, lakes, bays and bayous. With the average drilling depth in the northern Gulf of Mexico ranging between 12,000 and 18,000 ft. in shallow water depths, the standard drilling equipment was designed to accommodate drilling depths to 25,000 feet. The new proposed drilling depth is 40,000 ft., which far exceeds the design of standard swamp and posted drilling barges. However, there is a solution. The Super Barge, patented by Herman J.
New Inland Barge Drilling Rig
Parker Drilling Co. has received the newest member of the Parker international drilling fleet, drilling barge rig #75. Built by Oil Barges, Inc., the shallow water drilling rig will commence drilling operations in mid-August. The rig has a 25,000 ft., drilling depth rating with an SCR drive system. All drilling and mud processing equipment is installed on a multi-level barge measuring 240 ft. long and 70 ft. wide. The barge also includes an 82-person accommodation facility. Other innovative design features include a draft of less than 8.5 ft., permiting reduced dredging costs; a 50 ft. (clear height) substructure, permitting simultaneous drilling and workover operations…
Cost Reduction of Well Construction on UK Continental Shelf
Since 2004, well construction costs in the UK Continental Shelf (UKCS) have doubled, directly impacting drilling activity which is currently at an all-time low. However, collective industry efforts are already focusing in on how a reduction in core drilling costs of 50 per cent could potentially unlock around five billion boe of known reserves over the next decade. The significant work the industry is doing through the Technology Leadership Board (TLB) to address the well cost reduction challenge…
Smedvig Secures Contract Extension for West Venture
Smedvig has signed an agreement with Norsk Hydro to extend the drilling contract for the semi-submersible drilling rig West Venture. The extension of the drilling contract has a firm duration of two years and in addition, annual renewal options for five more years. The estimated contract value for the firm period is US$ 150 million (approximately NOK 1 billion) and includes an incentive scheme related to drilling performance. West Venture is equipped with a dual derrick set allowing for enhanced drilling efficiency. The dual drilling system is especially advantageous in completion of subsea production wells. West Venture has operated…
Crosco Provides Offshore Drilling Services in Tunisia
Crosco Integrated Drilling & Well Services Co., Ltd. announced the commencement of drilling services for Thyna Petroleum Services (TPS). Drilling services are being provided with Crosco's 1000 HP drilling rig Ideco-301 (Ideco H 44 ED) that has been set up on a barge (pontoon) to drill offshore. The first well of the drilling program (well Cercina 15) is currently being drilled on the offshore Cercina concession near the island of Kerhennah in Tunisia. Crosco's Area Manager, Predrag Cindric, said: Crosco currently has two drilling rigs providing services in Tunisia. Since 1988, in the Tunisian market, Crosco has been providing onshore and offshore drilling and well services and has provided services for nine international operators.
Bill Allowing Offshore Drilling Introduced in Congress
An effort to open Virginia's coast to offshore drilling gained new momentum in Congress when Virginia's senators introduced legislation giving states the option to drill for natural gas. The bill would give governors of coastal states the power to opt out of a federal moratorium that prohibits offshore drilling in most U.S. coastal waters. The new legislation comes one week after the Bush administration signaled its support for such proposals by calling for a study of potential gas and oil development in Virginia waters. Unlike other recent drilling bills, however, the new legislation is limited to natural gas drilling - thereby keeping in place a federal ban on offshore drilling for oil.
Ocean Rig Charter Out 'Erik Raude'
Ocean Rig UDW Inc., a global provider of offshore deepwater drilling services, signs contract with an oil major for the semi-submersible drilling rig 'Erik Raude'. The drilling contract is for a one-well program, with an estimated duration of up to 6 months, for drilling offshore Ireland, with an estimated backlog of approximately US$112 million, including mobilization and demobilization. The rig is scheduled to commence this contract in the second quarter of 2013, in direct continuation from its previous contract in West Africa.
Maersk Aspires to Arctic Year-round Drilling
Mærsk's oil drilling subsidiary is investing heavily in Arctic-ready drilling rigs, a move that is concerning environmental organisations. According to 'The Copenhagen Post' Maersk Drilling is going to be a key player in opening the Arctic to oil exploration by developing rigs that can drill for oil year-round under extreme conditions. Maersk Drilling belongs to the A.P. Moller Maersk group which also has an oil company, Maersk Oil. But while Maersk Drilling has taken out patents for technology that would allow them to drill in the Arctic, Maersk Oil only owns a limited number of licences for drilling in that area. It is therefore likely they will team up with other companies that have larger drilling licences in the region, such as Shell and Gazprom.
Hyperdynamics Offshore Guinea Exploration Project
AGR Petroleum Services today signed a drilling contract, on behalf of Hyperdynamics Corporation (NYSE Amex: HDY), with Jasper Drilling Private Limited of Singapore to contract the drill ship Jasper Explorer for drilling in Hyperdynamics' concession offshore the Republic of Guinea. The Jasper Explorer is a modern Pelican Class self-propelled drill ship capable of operating in water depths up to 5,000 feet. "The conclusion of a drilling contract with Jasper Drilling Private Limited is a crucial step in preparations for our drilling campaign.
Aker Kvaerner Awarded Drilling Equipment Contract
Aker Kvaerner has been awarded a contract with Neptune Marine & Drilling Pte Ltd in Singapore for delivery of a drilling equipment to the Neptune Explorer drillship. The total contract value for Aker Kvaerner is approximately $23m. "This contract which consists of derrick drill floor equipment and motion compensation are based on Aker Kvaerner MH's standard drilling equipment. This contract with Neptun is our latest project that will benefit from standardisation of our drilling equipment," says Roald Amundsen, President of Aker Kvaerner MH. The drilling equipment package will be delivered end 2006/ beginning 2007.
Keppel FELS Secures Order for $191m Jackup
Keppel FELS Limited (Keppel FELS), the wholly-owned subsidiary of Keppel Offshore & Marine Limited (Keppel O&M), has secured a contract from PetroVietnam Drilling Investment Corp (PVD Invest) to build a $191m jackup drilling rig. The contract was secured following Keppel FELS’s successful delivery of PV Drilling I, a high quality jackup drilling rig, two months ahead of schedule in March 2007. Like PV Drilling I, the new rig will also be built to the KFELS B Class design. To be named PV Drilling II, it is slated for delivery in the fourth quarter of 2009.
Alaska Drill Rig Refit Contract Terminated
Buccaneer Energy contextualizes termination of its contract with Archer Drilling as project manager of work on one of its jack-up rigs. The contract was for Archer Drilling to act as project manager of modifications and repairs to the Endeavour-Spirit of Independence jack-up rig owned by Kenai Offshore Ventures, LLC, which is a joint venture between Buccaneer, Singapore based Ezion Holdings Limited and the Alaska Industrial Development and Export Authority (“AIDEA”). Buccaneer is the designated Manager of Kenai Offshore. Archer Drilling was engaged by Kenai Offshore in October 2011 under a Master Services Agreement (“MSA”) to provide project management services for the modifications and repairs required to be undertaken to the Endeavour to allow it to operate in the Cook Inlet, Alaska.
Drilling Contract for Leiv Eiriksson
Ocean Rig ASA announced that it has executed a drilling contract with an affiliate of ExxonMobil Corporation for drilling services with the company's semi-submersible drilling rig Leiv Eiriksson. As earlier reported, the drilling contract reflects a drilling program of multiple wells (including firm and optional wells) offshore West Africa.
Furgo’s New Offshore Wind Farm Drill Readies for Action
Specialist overwater drilling and marine construction contractor Fugro Seacore is building a pile top drill, the T120, for the offshore wind farm market to assist with monopole installations of up to eight meters diameter. Their current big drill has 90 metric tons of rotational torque; the new one will have 120 metric tons. This new addition to the fleet means they will have two drills capable of relief drilling piles of larger than six-meter diameter simultaneously, for instances where larger monopiles are the chosen foundation for the wind farm sites of Round three in U.K.
Aker Solutions Wins Multiple Drilling Equipment Contract
Aker Solutions has won a contract with a subsidiary of Honghua Holding Ltd. of China to deliver high specification drilling equipment components for seven new onshore drilling rigs. Honghua is building a series of seven drilling rigs for a premier drilling company in the Middle East region. The contract includes options for another four identical deliveries. Each drilling equipment delivery includes a draw work, three mud pumps, a 1000 tons top drive and other equipment from Aker Solutions. "This contract underlines the quality of Aker Solutions' drilling equipment portfolio, combined with our proven execution ability on multi-rig projects and that our high specification equipment can be applied in the onshore drilling market…
GlobalSantaFe's Worldwide SCORE
Houston-based international offshore drilling contractor GlobalSantaFe reported that the company's worldwide SCORE, or Summary of Current Offshore Rig Economics, for December 2001 was down from the previous month's SCORE by 1.7 percent. Looking back at 2001, GlobalSantaFe President and CEO Sted Garber said, "SCORE clearly reflects some of the key trends in the major offshore drilling markets over the year. GlobalSantaFe's SCORE compares the profitability of current mobile offshore drilling rig dayrates to the profitability of dayrates at the 1980-1981 peak of the offshore drilling cycle. In the 1980-1981 period, when SCORE averaged 100 percent, new contract dayrates equaled the sum of daily cash operating costs plus approximately $700 per day per million dollars invested.
Transocean Completes Sale of Rigs to Shelf Drilling
Transocean Ltd. (NYSE: RIG) (SIX: RIGN) has announced that it has closed on the previously disclosed transaction to sell 38 shallow water drilling rigs to Shelf Drilling Holdings, Ltd. ("Shelf Drilling"). Shelf Drilling is a newly-formed company sponsored equally by Castle Harlan, CHAMP Private Equity and Lime Rock Partners. The $1.05 billion sales price includes approximately $855 million in cash, subject to working capital and other closing adjustments, and $195 million in seller financing, which is in the form of preference shares issued by an affiliate of Shelf Drilling. As previously disclosed, Transocean will provide various transition support services to Shelf Drilling for a period of time subsequent to the closing of the transaction.
Keppel Delivers PV Drilling III Jackup Early
Keppel FELS Limited (Keppel FELS) has been awarded a bonus of $460,000 for delivering the KFELS B Class jackup rig, PV Drilling III, early to PetroVietnam Drilling & Well Services Corp (PV Drilling). Completed 1.5 months ahead of schedule, without incidents, PV Drilling III has departed Keppel FELS for Vietnam to begin a five-year contract with Vietsovpetro in the Bach Ho field, offshore Vietnam. PV Drilling III completes the series of three KFELS B Class jackup rigs ordered by PV Drilling since 2005. The KFELS B Class rig is able to operate in water depths of 400 ft with a drilling depth of 30,000 ft. Versatility of PV Drilling III…
ABB Wins Offshore Contracts of $150m
ABB, a power and automation technology group, recently won six contracts collectively worth more than $150m to supply main electrical systems for drilling rigs and drill-ships built in Asia. The orders were booked during the third quarter of 2008. Among the new orders are three deepwater drilling rigs now under construction at the Jurong Shipyard in Singapore, two drill-ships (Stena DrillMAX ICE and the Pride #4 drill-ship) to be built at Samsung Heavy Industries and another drill-ship for Metrostar to be built at Hyundai Heavy Industries in Korea. Matti Reinikkala, head of ABB’s Process Automation division attributes the recent commercial success to the group’s global strategy.