Marine Link
Tuesday, October 24, 2017

Gom Oil

GOM Oil Industry Starts Comeback

Following a nearly complete shutdown of the oil and gas business in the Gulf of Mexico in the wake of Hurricane Katrina, signs indicate a comeback is starting, slow but steady. According to a Reuters report, oil and gas operations recovered slowly on Wednesday, with oil companies struggling to contact all of their workers and assess damage to rigs. Refinery progress was slow but steady. Three of eight refineries that Katrina completely shut have returned either full or partially, including Marathon Petroleum Co. LLC's large 245,000 barrels per day (bpd) plant in Garyville, Louisiana. Offshore, oil and gas production has also been on the rise after Katrina shut nearly all output. Government figures as of Tuesday showed 58 percent of the Gulf's crude production and 41 percent of its gas production remained shut down. The U.S. Coast Guard has said a total of 56 Gulf offshore platforms have been lost or damaged. Reuters reported that natural gas production this year will drop by about 1.5 percent, according to the U.S. Energy Information Administration.

ABS Supports Shell's Olympus TLP Acting as CVA

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)

Plan to Stop Leaking GOM Oil Well

According to a report from Reuters, U.S. agencies on April 25 approved a plan to use remote-controlled underwater vehicles to seal a leaking oil well beneath a drilling rig that exploded and sank in the Gulf of Mexico last week. The well, 5,000 feet under the ocean surface off Louisiana's coast, is leaking about 1,000 barrels of oil a day. (Source: Reuters)

GOM Oil Spill, Multiple Companies Implicated

According to a May 8 report from the New York Times, Congress is preparing to hold hearings on the April 20 explosion that sank the Deepwater Horizon oil rig. Implicated are BP, the British company that leased the deepwater rig, Transocean, the rig’s owner and operator, Halliburton, which handled a critical procedure about a day before the accident, and Cameron International, which made the blowout preventer that failed to engage

Latest BSEE Update on GOM Oil Sheen

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Statement from BSEE, April 16, 2012 as of 2:30 p.m. CDT   The Bureau of Safety and Environmental Enforcement (BSEE) has confirmed that a modest amount of oil is being released from a natural seafloor seep previously suspected as the source of an oil sheen reported last week in the Gulf of Mexico. BSEE, along with natural seeps experts from the Bureau of Ocean Energy Management, viewed videotape from a remote operated vehicle survey deployed by Shell to make the final determination

Helix Hit Deepwater Oil in Gulf of Mexico

Helix Energy Solutions Group discover high quality pay oil in deep water 145 miles offshore from Galveston, Texas The Danny II exploration well was drilled to a total depth of approximately 14,750 feet, in water depths of approximately 2,800 feet. The well is currently being completed and most likely will be developed via a subsea tie back system to the company's 70% owned and operated East Cameron Block 381 platform located approximately 31 miles to the north in 370 feet of water

GOM Offshore Ops Returning to Normal

Oil and natural gas production levels and the number of workers on offshore rigs and production facilities were close to or at normal levels today as offshore operations resumed after the threat of Tropical Depression No. 10 passed late last week. Workers remained evacuated from three production platforms, or 0.4 percent of the 834 manned platforms in the U.S. Gulf. All personnel evacuated from rigs have been redeployed to the 89 rigs operating in the Gulf. Approximately 19.3 percent of U.S

Resolve Stations “Flagship” Vessel in Key West

pioneer w plume web.jpg

RESOLVE Marine Group reports that its vessel RESOLVE Pioneer, the company’s flagship, has been stationed in Key West, Fla. Resolve Pioneer is an AHTS, a multi-service vessel with ice class hull and 80-ton bollard pull, stationed in Key West for an indefinite period -- for emergency response and salvage standby for tanker and other commercial vessel casualties in the Gulf of Mexico, the Caribbean and the U.S. east coast

BOEMRE on Resuming Pre-Approved Activities

The Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE) notified 13 companies whose deepwater drilling activities were suspended by last year’s deepwater drilling moratorium that they may be able to resume those previously-approved activities without the need to submit revised exploration or development plans for supplemental National Environmental Policy Act (NEPA) reviews. Before resuming those activities without additional NEPA review, however

Statoil Reports GoM Oil Discovery

The Maersk Developer drilling rig. (Photo: Jonathan Bachman - AP - Statoil)

Statoil has made an oil discovery in its Miocene Yeti prospect located in the Gulf of Mexico (GoM), the company announced today.   “The Yeti discovery expands the proven sub-salt Miocene play further south and west of the Big Foot field,” said Jez Averty, Statoil’s senior vice president, exploration for North America. “We are analyzing data to determine the size of the discovery in order to consider future appraisal options.”  

What’s New in Floating Production? December 2016

© ggw / Adobe Stock

WER December Floating Production Report  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

World Energy Trends: What’s New in Floating Production

Where FPSOs are Being Planned. (Source: IMA/World Energy Reports)

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

Gulf of Mexico is Ground Zero for the Jones Act

(Photo: OMSA)

A vastly modernized U.S. offshore support fleet awaits the opportunity to perform Jones Act work in the U.S. Gulf of Mexico. Foreign operators, already here, predict disaster if a cabotage rule change takes effect.   A change proposed by the US Customs and Border Protection (CBP) in its Customs Bulletin & Decision newsletter promises reversal of a 40-year practice that, until now, allowed the use of non-coastwise-qualified vessels in the transportation of pipeline repair material;

Total, Chevron Team up in Gulf of Mexico Oil Exploration

Photo: Total

 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

Norsafe to Debut New Lifeboats at KORMARINE

Maxima-120 (Image: Norsafe)

Norsafe, a developer of marine lifesaving equipment, will bring crew safety into focus at KORMARINE in Busan, Korea, on October 20-23, launching two new lifeboats for the shipping and offshore markets.   The company, which specializes in the design, manufacture and servicing of lifeboats, rescue boats and davits, will use the exhibition to launch two new lifeboats targeting the merchant shipping and offshore markets.   

GCSG Delivers Harvey Power

Harvey Power, the second LNG vessel operating in the United States

  Gulf Coast Shipyard Group (GCSG) has delivered Harvey Power, the second LNG vessel operating in the United States—for Shell Upstream America’s deep water operations in the Gulf of Mexico—is fully in service. She is the second of six LNG OSVs being built for Harvey Gulf International Marine, and like her sistership Harvey Energy, Harvey Power is capable of operating on LNG or diesel fuel. Along with being able to operate on LNG

Fatality on Drillship in Gulf of Mexico

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  The Bureau of Safety and Environmental Enforcement (BSEE) is responding to a report of a fatality on a drillship in the Gulf of Mexico (GoM) approximately 200 miles south of Lake Charles, LA, in 4,800 feet of water. The Pacific Santa Ana drillship was beginning drilling operations for Chevron. According to the operator, operations on the drillship have been shut down. There were no other injuries reported and personnel remain on the drill ship. There was no reported pollution

Conquest Installs 850t Crane on Allseas Solitaire

Allseas MV Solitaire (Photo: Conquest Offshore)

Conquest Offshore was contracted by Allseas to remove a 300-ton crane and transport and install a 850-ton Huisman crane on board of one of the largest pipe-lay vessels in the world, Allseas Solitaire.   The 397-meter vessel MV Solitaire is the largest ship ever to have passed IJmuiden’s massive sea lock after which the ship was berthed at Dutch Offshore Base in Amsterdam. The pipe-laying vessel is used for the construction of natural gas pipeline systems and oil pipelines

BSEE Panel for Oil Release in GoM

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The Bureau of Safety and Environmental Enforcement is continuing its investigation of the oil release from Shell Offshore Inc.’s Glider Field on May 12. The Glider Field, located approximately 97 miles south of Port Fourchon, LA, includes subsea wells and the field’s production flows to the Brutus Platform. BSEE Gulf of Mexico Regional Director Lars Herbst formally established an Investigative Panel May 16

Chain Tensioning, Cutting Completed for FPSO Turritella

FPSO Turritella (Photo: InterMoor)

InterMoor said it has completed the final tensioning and chain cutting operations on the FPSO Turritella for the Shell Stones project, located in the Walker Ridge protraction area in the Gulf of Mexico (GoM).    The FPSO Turritella will connect to subsea infrastructure located beneath approximately 9,500 ft (2,896 m) of water, breaking the existing water depth record for an oil and gas production facility. This ultra-deepwater project marks the first FPSO for Shell in the GoM

Lloyd's Register Extends Drilling Rig Integrity Support

Exploration begins by BHP Billiton using the Deepwater Invictus rig and supported by Lloyd’s Register’s rig integrity team. Lloyd’s Register (LR) announced it has extended rig integrity support for the Deepwater Invictus drilling rig. The company’s expertise in blow-out preventers (BOPs) and rig integrity will be used to provide confidence in how risk is managed for deepwater drilling and well exploration.

BHP: GoM Mad Dog Project Viable with sub-$50 Oil

File Image: a typical BHP Offshore operaion (Credit: BHP Billiton)

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.  

As Operators Look for the Bottom, Gulf Gloom Persists

Credit: Yesenia Rodriguez

Gulf of Mexico vessel operators want to see sustained, higher oil prices. After a rough two years, supply boat owners and operators in the Gulf of Mexico hope crude oil prices will improve in 2017. That would encourage activity among the offshore drillers that they service and would put unemployed boats back in the water. Vessel owners aren’t necessarily banking on a good year ahead, however.   “Utilization of OSVs and PSVs in the Gulf is below 50 percent now

Could Offshore Crewing Requirements Make Things Worse?

(Photo: Joaquin Andres Bosqued)

It has been years (2009) since I last wrote an article discussing the availability of U.S. citizens to work offshore in support of oil and gas projects during a downturn in the economy. And now, it is even worse. With the price of oil and gas remaining depressed for many months now, and the many new developments related to drilling ashore, and domestic vessels remaining stacked in the Gulf of Mexico (GOM), companies are working hard to find work in any market around the world

BP's Mad Dog Major FID in Gulf of Mexico

Photo: BP p.l.c

 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.   

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