Mad Dog News

BP's behemoth Argos offshore oil platform, the centerpiece of the company's $9 billion Mad Dog 2 project in the U.S. Gulf of Mexico, has arrived in the U.S. after a 16,000-mile journey from South Korea.The platform, loaded onboard Boskalis' BOKA Vanguard heavy transport vessel, had left South Korea on February 3, and it has this week arrived in the Kiewit Offshore Services fabrication yard in Ingleside, Texas."The arrival of the new floating production unit is a major milestone towards the completion of Mad Dog 2.

Oil major BP has informed that its Argos oil platform, built by Samsung Heavy Industry, has set sail from South Korea and is en route to Texas.The platform, which will be capable of producing up to 140,000 gross barrels of crude oil per day from up to 14 production wells, will be deployed in the U.S. Gulf of Mexico as part of the Mad Dog 2 development.As previously reported, the Argos platform weighing almost 70,000 tons was in January loaded on Boskalis' semi-submersible heavy transport vessel BOKA Vanguard preparation for the sailaway.Announcing the sailaway…

BP's giant Argos offshore platform, to be used for the Mad Dog 2 development in the Gulf of Mexico, was this week loaded on Boskalis' BOKA Vanguard vessel in South Korea and is preparing set sail for the U.S.According to Boskalis, the Dutch marine services contractor, the giant Argos floating production unit weighing nearly 70,000 tons was floated onto Boskalis' semi-submersible heavy transport vessel BOKA Vanguard on Tuesday."The vessel was submerged well over 29 meters to make this happen.

BP Plc began turning off production at three platforms in the northern Gulf of Mexico and evacuating workers because of the threat from Tropical Storm Cristobal, forecast to make landfall in Louisiana over the weekend, the company said.Norwegian state-oil company Equinor ASA began evacuating non-essential workers on Wednesday and plans to shut production on Friday at its Titan oil platform if the storm continues along its projected path, spokesman Hasting Stewart said.Occidental Petroleum Corp also began flying non-essential workers to shore from central Gulf of Mexico operations…

Fifteen production floaters were contracted in 2017 – 11 FPSOs, two production semis, a wellhead TLP and an FLNG – and the number of deep water projects in the near-term planning queue indicates production floater orders are set to accelerate. This is a big change from 2016 when orders for new units totally dried up and the deepwater future looked pretty bleak. Here’s a round-up of contracts awarded last year and in January 2018. Tempera FPSO - Keppel in January 2017 received a contract from Dixstone Holdings…

Subsea 7 said it was awarded a contract by BP as part of the deepwater Mad Dog 2 development, located approximately 190 miles south of New Orleans. The contract scope covers engineering, procurement, construction and installation (EPCI) of the subsea umbilicals, risers and flowlines (SURF) and associated subsea architecture. Subsea 7 has worked closely with BP to deliver a lump sum integrated solution from design through to supply, installation and commissioning. Furthermore, by collaborating with OneSubsea, a Schlumberger company, our Subsea Integration Alliance partner that has been awarded the Subsea Production Systems (SPS) contract, additional areas of cost improvement have been identified to provide greater cost certainty and reduced risk.

BHP Billiton has announced that the Board has approved expenditure of US$2.2 billion for its share of the development of the Mad Dog Phase 2 project in the Gulf of Mexico. BHP Billiton holds a 23.9 per cent participating interest in the Mad Dog field. BP, the operator, holds a 60.5 per cent participating interest, and Union Oil Company of California, an affiliate of Chevron U.S.A. Inc., holds the remaining 15.6 per cent participating interest. During the fourth quarter of 2016, BP sanctioned the Mad Dog Phase 2 project. Mad Dog Phase 2, located in the Green Canyon area in the Deepwater Gulf of Mexico, is a southern and southwestern extension of the existing Mad Dog field.

Oil pricing continues to hover in the mid-$50s, market confidence is slowly returning and the production floater fabrication market is stirring. A major order for a production semi was placed in early January -- with Samsung receiving a contract to build the production semi for BP's Mad Dog Phase 2 project. The $1.27 billion unit will have capability to produce 110,000 b/d oil from 14 production wells. It will be used to develop further oil discoveries near the original Mad Dog Spar in the Green Canyon area of the GOM.

Samsung Heavy Industries, South Korea's major shipyard, build a floating production unit for British oil multinational BP that will be used in offshore drilling in the Gulf of Mexico, says a report in Yonhap. The 1.5 trillion won ($1.26 billion) contract is the first for a floating oil production platform to be received by any of South Korea's big three shipbuilders in 18 months, according to Samsung Heavy. Under the deal with BP Plc, Samsung Heavy will build a floating production unit (FPU) by August 2020. The semi-submersible platform will be used for BP’s field development project, called ‘Mad Dog II,” in the U.S. Gulf of Mexico. Production began in the Mad Dog oil field in 2005.

The December WER report examines whether OPEC’s decision to limit crude production will accelerate deepwater project starts over the next 12 to 24 months, given 3 billion barrels of oil stocks in global inventory, 5,000+ drilled-but-uncompleted shale wells in the U.S. ready to be fracked and likelihood that producers will cheat on output quotas. As we discuss in the report, the output cut could stimulate deepwater orders – but with a time lag. We also assess whether Hoegh and Maran’s orders for seven speculative FSRUs (two firm…

Sole standalone in a sea of tiebacks: BP's Mad Dog is the only major final investment decision (FID)  in deepwater Gulf of Mexico this year, says Wood Mackenzie. On 1 December 2016, BP (60.5% and operator) sanctioned the Mad Dog Phase II development in the deepwater Gulf of Mexico (GoM). BP and partners BHP Billiton (23.9%) and Chevron (15.6%) operate the Mad Dog field, which began production in January 2005. The second phase commercialises southern segments of the field that were discovered in 2009 and 2011. The project was first evaluated in 2012 and has been through multiple revisions as the partners honed in on an optimal development solution. Wood Mackenzie expects first production in late 2021.

BHP Billiton said the second phase of its Mad Dog offshore joint venture with BP in the Gulf of Mexico was economical at oil prices below $50 per barrel. Originally slated for development in 2013, the project has been deferred due to low oil prices and moves to reduce construction costs. After losing three-quarters of its value from mid-2014 to early 2016, the price of benchmark U.S. crude has rallied more than 80 percent since February to nearly $50 per barrel.   Reporting by James Regan

Tropical Storm Bill punched the Texas coast with heavy rains and strong winds on Tuesday, the National Weather Service said, just three weeks after floods killed about 30 people in the state. The second named tropical storm of the 2015 Atlantic hurricane season made landfall near Matagorda, a sportfishing town near the South Texas Nuclear Generating Station in Bay City, a coastal nuclear power plant. Spokesman Buddy Eller said the plant had prepared for the storm and operations were normal with full staffing. Companies said output from oil platforms in the Gulf of Mexico, which pumps about a fifth of all domestic crude, was unaffected. But BP Plc shut its Mad Dog and Atlantis fields early on Tuesday after a pipeline outage that was expected to be fixed soon, a source said.

Today there are 324 oil/gas floating production units are now in service, on order or available for reuse on another field. FPSOs account for 64% of the existing systems, 79% of systems on order. Production semis, barges, spars and TLPs comprise the balance. The oil/gas production floater inventory has increased by four units since last month. Three FPSOs were ordered in August. We also reinstated a partially completed production semi,  Octobuoy, which we earlier deleted from the list of orders when the contract was terminated. This unit was being built for use by ATP in the North Sea.

There are 320 oil/gas floating production units are now in service, on order or available for reuse on another field. FPSOs account for 64% of the existing systems, 79% of systems on order. Production semis, barges, spars and TLPs comprise the balance. Total oil/gas inventory is the same as last month – but two units on order last month (N’Goma FPSO and Delta House Semi) were completed and are now in the active inventory. Another 29 floating LNG processing systems are in service or on order. Liquefaction floaters account for 17%, regasification floaters 83%.

Should Russia occupy more Ukrainian soil and sustain the already tense relations with the West, the U.S. government may decide to release crude from its Strategic Petroleum Reserve (SPR) – perhaps 500,000-700,000 barrels per day as suggested by the Financial Times. Such a move would undoubtedly hurt Moscow economically – not to mention several of the U.S.’ allies (notably Saudi Arabia) – as crude oil prices would probably drop below the $100 per barrel mark. But how would this affect the U.S.’ own oil production, especially the capital-heavy Gulf of Mexico?

Floating production has been one of the most significant developments in the oil and gas industry over the past four decades. Since the first floating production unit (Argyll) was installed in 1975, more than 350 offshore fields too deep, too remote or too small for fixed platforms have been developed using floating production facilities. Looking forward, the future of the sector continues to look very promising, but some barriers and threats to growth have appeared. Three hundred and twenty (320) oil/gas floating production units are now in service…

In general the floating production sector looks healthy and growth remains strong. But the sudden expansion of shale oil and tight oil production could disrupt the growth trajectory in the deepwater sector. The underlying drivers for deepwater development point toward continued sector growth. Spot and futures crude pricing is at levels supporting deepwater development. Oil demand keeps growing and there continues to be need for new future sources of oil. The threat of supply disruption from traditional sources remains, prompting oil companies to look at alternative sources. Activity in the deepwater sector is robust. More than 200 deepwater projects are in the planning stage that will likely require a floating production system for development.

Bisso Marine Company, Inc. heavy lift crews recently loaded out a 620 ton booster compression module for the Mad Dog project for British Petroleum. The lift was done by Bisso’s Derrick Barge CAPPY BISSO at the Dolphin Services Fabrication yard in Houma, Louisiana.

Pride International awarded Signal International LLC a contract to outfit and integrate the drilling equipment for BP's Mad Dog truss spar production facility in Green Canyon Block 782. The drilling support module (DSM) for Mad Dog arrived at Signal's Port Arthur, Texas, facility on Feb. 1. The derrick equipment set will be mated to the DSM following its scheduled mid-March arrival at the facility. The unit will then be integrated and commissioned with final load-out and redelivery anticipated in mid-May. Pride is operator of the drilling rig. J. Ray McDermott is constructing the 16-slot truss spar, which will include the rig, production equipment and permanent quarters for drilling and production personnel.

Average crude oil prices for July were little changed from June. The West Texas Intermediate (WTI) spot average for July was $30.75 per barrel compared to $30.66 in June. EIA’s Outlook is for prices to remain firm through the rest of 2003, or at least until autumn, when OECD oil inventories may rebuild above observed 5-year lows. Once inventories have been rebuilt, WTI oil prices may slide gradually to $26 per barrel during 2004, as Iraqi oil exports return to near pre-war levels. U.S.

Technip was awarded a front end engineering design (FEED) contract by BP Exploration & Production Inc. This contract covers the design of a Spar* hull and mooring systems for the Mad Dog Phase 2 Project, located  near Green Canyon Block 825 in the Gulf of Mexico. This first award comes under the framework of the 10-year Spar platform master services agreement signed in 2011. The Mad Dog Phase 2 Spar will be located near the first Mad Dog Spar delivered by Technip for BP in 2004, and installed on Green Canyon 782. Detailed engineering for the new Spar is scheduled to start during the second half of 2012. Technip’s operating center in Houston, Texas, will execute the contract with support from the center in Pori, Finland.

Saipem America has been awarded two contracts from BP Exploration & Production. Saipem America has been awarded a contract for the BP-operated Mad Dog drilling rig replacement project in the U.S. Gulf of Mexico. The scope of work includes the project management, engineering, transportation, removal of the existing drilling support module from the Mad Dog spar and installation of new drilling rig module onto the Mad Dog spar. Offshore operations are planned within the window end of 2011/early 2012. Saipem America will use the Saipem 7000, the world's largest crane vessel with the capacity to perform heavy lift operations up to 14,000 tonnes. Saipem America has been awarded a contract extension for ROV support services on the Transocean Development Driller II Drilling Rig (DDII).