National Steel and Shipbuilding Company (NASSCO) delivered the Alaskan Frontier, the first of four Alaska-class double-hull oil tankers being built for BP Oil Shipping Company, USA. Touted as state-of-the-art ships and environmentally friendly — backed by an innovative diesel-electric propulsion system, with redundant engines, shafts and screws, significantly increases reliability and reduces air emissions and maintenance downtime — the ship has been designed for a life of 35 years with a deck structure designed for a life of 50 years. The ship uses seawater instead of oil to cool and lubricate their propeller shafts, thus eliminating the possibility of accidental oil leaks. Their cargo piping, normally installed on the deck, is inside the cargo tanks, to reduce the risk of small spills.
BP Finds Major Gas Field
According to a Bloomberg report, BP Plc discovered a gas deposit in the Caspian Sea that may double production from the largest natural gas development in Azerbaijan. BP shares rose 2.8 percent, the most in a month, in London trading after the company announcement. With the latest discovery, the field may be able to pump enough gas to supply Belgium and Luxembourg together. BP and partners including StatoilHydro ASA plan to spend $4.2b on the site's first stage, which started pumping fuel to Turkey in July, easing Europe's dependence on supplies from Russia's OAO Gazprom. The announcement is the second ``major'' discovery within a week after Petroleo Brasileiro SA said an offshore field could be Brazil's biggest ever oil find.
Iain Conn to Leave BP
BP today announced that Iain Conn, Group Managing Director and Chief Executive, Downstream, is leaving the company and is to step down from BP’s board by the end of the year. Conn has had a career of 29 years with BP, serving on the board for the past 10 years and in his current Downstream role for the past seven. The Downstream comprises BP’s three main global Customer-facing businesses: Fuels, including refining; Lubricants (principally under the Castrol brand); and Petrochemicals. Under Conn’s leadership, BP’s Downstream segment has been repositioned strategically and operationally.
Transocean in U.S. Federal Court on BP Obligations
Transocean Files Motion for Summary Judgment in U.S. Transocean Offshore Deepwater Drilling Inc. (TODDI), a subsidiary of Transocean Ltd., today filed a motion for summary judgment in the United States District Court for the Eastern District of Louisiana requesting the court to compel BP to honor its contractual obligation to defend, indemnify and hold harmless Transocean for damages associated with BP's failure to contain flow from its Macondo well in the Gulf of Mexico in 2010. The contract between BP and Transocean for the Deepwater Horizon drilling rig contains industry-standard reciprocal indemnity provisions that apportion risk and quantify liabilities between the two companies.
DNV GL, Chrysaor Pact for North Sea Operations
DNV GL has secured a combined engineering services agreement with Chrysaor Holdings Ltd. to deliver a unique range of services to the company in support of its North Sea Operations. Chrysaor recently completed the acquisition of a package of assets in the UK North Sea from Shell for a price of $3.0 billion. The transaction sees Chrysaor become the leading independent E&P company in the UK. It currently has more than 400 staff working in the UKCS. Hari Vamadevan, Regional Manager UK & West Africa…
Courts Upholds BP 'gross negligence' Gulf Spill Ruling
A U.S. The decision by U.S. District Judge Carl Barbier in New Orleans means BP could still face close to $18 billion of penalties for violating the federal Clean Water Act. It marks the latest setback in BP's effort to curb costs from the April 20, 2010, explosion of the Deepwater Horizon rig, which led to 11 deaths and the largest U.S. offshore oil spill. The trial is expected to resume in January. Barbier had on Sept. 4 ruled that BP committed gross negligence and was 67 percent at fault for the spill. The gross negligence finding roughly quadrupled the maximum civil penalty that BP could face under the Clean Water Act. BP later argued that this ruling relied on inadmissible testimony from an expert for Halliburton Co, which provided cementing work at the spill site.
Deepwater Horizon: All Criminal Claims Resolved
BP announces US District Court’s acceptance of its plea relating to the Deepwater Horizon accident. BP announce that the US District Court for the Eastern District of Louisiana has accepted the company’s plea resolving all federal criminal charges against the company stemming from the Deepwater Horizon accident, oil spill, and response. The company offered its plea to the Court and was sentenced in connection with the agreement BP reached with the Department of Justice (DOJ) on November 15, 2012. As previously announced, BP will pay $4 billion over a period of five years and will serve a term of five years’ probation. Pursuant to the terms of the plea agreement…
BP Terminates GoM Rig Contracts
BP terminated contracts for two deepwater oil drilling rigs in the Gulf of Mexico as the British oil company slashes its exploration budget due to fallen oil prices. Offshore drilling company Ensco said it had received notice to terminate BP-operated rig DS-4 in the Gulf of Mexico. Rival Seadrill Partners announced this week that BP had also cancelled a contract for the West Sirius field in the same region. BP confirmed the termination of both contracts, saying the rigs were "surplus to requirements following BP's adjustment of capital expenditures in response to the new, lower oil price environment. "BP remains the largest investor and leaseholder in the U.S.
Aker/DNV GL Ink Frame Agreement
Aker BP has awarded a new frame agreement to DNV GL, covering a wide range of safety, verification, inspection and classification services across its installations on the Norwegian Continental Shelf. The five-year contract, which includes options for extension, will see DNV GL experts integrated into Aker BP’s organization to provide decision-making support and stand-alone assessments. “This contract represents an important step forward in DNV GL’s long relationship with BP Norway and Det norske oljeselskap…
USDOJ: BP Guilty in Deepwater Horizon Case
BP Exploration and Production Inc. Agrees to Plead Guilty to Felony Manslaughter, Environmental Crimes and Obstruction of Congress Surrounding Deepwater Horizon Incident; BP Agrees to Pay a Record $4 Billion in Criminal Fines and Penalties Two Highest-Ranking BP Supervisors on Deepwater Horizon Oil Rig Charged with Manslaughter and Former Senior BP Executive Charged with Obstruction of Congress. BP Exploration and Production Inc. (BP) has agreed to plead guilty to felony manslaughter, environmental crimes and obstruction of Congress and pay a record $4 billion in criminal fines and penalties for its conduct leading to the 2010 Deepwater Horizon disaster that killed 11 people and caused the largest environmental disaster in U.S. history, Attorney General Eric Holder announced today.
Timeline: BP Oil Spill Litigation
BP Plc was found "grossly negligent" on Thursday by a federal judge in connection with its role in the 2010 Gulf of Mexico oil spill. The decision by U.S. District Judge Carl Barbier in New Orleans, who oversees litigation related to the disaster, is likely to boost the British oil company's costs emerging from the biggest offshore spill in U.S. history. April 20, 2010 Rig Explodes: An explosion on the Deepwater Horizon oil rig at the Macondo exploration well kills 11 workers and releases millions of barrels of crude oil into the Gulf of Mexico. The well is capped in mid-July.
BP Marine to Migrate Marine Lubricant to Castrol
Consolidation will provide marine customers with a simpler and more consistent product offering. Global lubricants manufacturer, Castrol, has announced that it will become the sole brand for the BP group’s marine lubricant offering. The decision to consolidate the marine lubricants offerings that are currently provided under both BP Marine and Castrol Marine brands will create a single product and service portfolio that will provide greater simplicity and efficiency for customers.
BP Shipping Marks its 100th Year
BP Shipping today celebrates its 100-year anniversary, making it the longest continually operating company in the BP group. Formed on April 30, 1915 as the British Tanker Company, the business has adapted to significant world events including two world wars, the Great Depression, closures of the Suez Canal, and the impact of oil nationalisations on the world economy and the movement of oil and gas. BP Shipping has also played its role in the evolution of safer and more environmentally sustainable shipping practices including inert gas systems…
EPA Block Further BP US Government Contracts
BP says it is working with EPA to demonstrate "present responsibility" and have temporary suspension lifted. BP also wishes to make it known that the announcement by the US Environmental Protection Agency (EPA) regarding BP’s temporary suspension relates only to future potential contracts with the US government. The temporary suspension does not affect any existing contracts the company has with the US government, including those relating to current and ongoing drilling and production operations in the Gulf of Mexico. They continue: The EPA’s action is pursuant to administrative procedures providing for discretionary suspension until a company can demonstrate "present responsibility" to conduct business with the US government.
BP Contract Jeppesen Voyage Planning
Jeppesen optimization solutions to be used aboard BP's LNG, Product & Crude Oil vessels to increase efficiency, reduce risks & save fuel. The contract will result in the installation of Jeppesen’s Vessel and Voyage Optimization Solution (VVOS) on 52 BP vessels carrying crude oil and LNG shipments globally. The contract also provides for integration of Jeppesen’s FleetManager shoreside component into BP Shipping operations. FleetManager will be used to track BP’s owned and chartered vessels. VVOS will help BP vessels optimize ship routes and engine settings to increase efficiency, minimize risks such as cargo loss and weather damage, and reduce fuel costs.
BP Award STATS Group Global Role
STATS Group has been awarded a global frame agreement by BP to provide pipeline isolation and intervention services. The Aberdeen-based pipeline engineering specialist has worked with BP in the past but this three year agreement formalises the relationship covering all BP’s regional business units. STATS has committed to developing industry best practice by working with BP and three other contracting parties to develop and promote industry standards. Recent projects performed by STATS on BP assets include workscopes in the North Sea, Azerbaijan, Angola and Trinidad.
BP Orders 4 PSVs from HHI for North Sea
The vessels will be deployed to support its West of Shetland (WoS) and Norwegian operations and are be delivered between the winter of 2013 and summer of 2014. The purpose built and highly specified vessels have been designed to provide long term support to BP’s North Sea business and will provide the capabilities BP requires to deliver its strategy more efficiently and safely. The vessels will have oil spill response capability and special tanks to transport fluids required for planned enhanced oil recovery (EOR) schemes. The arrangement is structured such that BP Shipping has contracted Hyundai to build the vessels and then hire them to BP Exploration Operating Company on a 15 year bareboat term charter.
BP US Leadership Changes
John Mingé, Regional President BP Alaska, appointed Chairman/President of BP Americas Inc., succeeded by Janet Weiss. John Mingé, has served as head of BP’s Alaska business since January 1, 2009. He will be based in Houston, where he will serve as BP’s lead representative in the US. “BP’s history in Alaska stretches back more than five decades and it is one of the largest and most important businesses in BP’s global portfolio,” Mr. Mingé said. Ms. Weiss serves currently in Alaska as Regional Vice President, Resources, accountable for resource progression and subsurface activities, as well as for IT. In her new role, she will be responsible for BP's oil and gas exploration, development and production activities in Alaska, as well as its interests in the Trans-Alaska oil pipeline.
BP Marine to Cease Cyprus Bunker Ops
BP Marine is to close its bunkering operation in Cyprus as a result of sales failing to deliver on expectations. BP Marine first moved into the Cyprus marine fuels market in February 2005 in anticipation of increased shipping activity following the country’s entry to the EU the previous year. This, however, did not materialise and the bunkering market has in fact shrunk as economies and trade continued to be adversely affected by ongoing regional conflicts. Parris Beverly, managing director of BP Marine Fuels, says: “Over the course of the last three years we have made every effort to stimulate business in Cyprus, but ultimately there has been no significant change.
Cory Brothers Shipping Wins BP Hub Agency Contract
Cory Brothers Shipping has been awarded a five year Hub Agency contract by BP Shipping covering the Baltic, Europe, and Mediterranean regions. This is the largest region awarded by BP Shipping within its global system and covers some 6,000 port calls per year. Cory Brothers will be responsible for managing the agency network for BP’s own fleet and voyage chartered vessels employed on BP business. The Hub Agency system ‘ShipTrak’ developed by Cory is linked to BP’s internal management system BPOSS providing a direct data link between the local port agent and BP. Apart from vessel reporting and port information, the hub team provides operational and financial control encompassing audit procedures through ‘ShipTrak’.
NASSCO Delivers the Double-Hull Oil Tanker
National Steel and Shipbuilding Company delivered the Alaskan Navigator, the third of four Alaska-class double-hull crude oil tankers being built for BP Oil Shipping Company, USA, a subsidiary of BP p.l.c. (ADR: BP). “We are now focused on completion of the fourth ship in the class, which is progressing well in the shipyard as we have ramped up production on both the BP tankers and Navy new construction work,” said Richard Vortmann, NASSCO president. The Alaskan Navigator will join her sister ships, the Alaskan Frontier and the Alaskan Explorer, which were delivered in August 2004 and March 2005, delivering crude oil from Alaska to BP’s refineries in Los Angeles and Cherry Point, Wash. The fourth ship will be delivered in late 2006.
BP Selects Offshore Automation Contractor of Choice
Emerson will be BP’s preferred supplier of integrated control and safety systems for five offshore fields in the U.K. continental shelf, including the new Clair Ridge platforms and the Quad 204 floating production, storage and offloading vessel. Emerson’s selection as contractor of choice builds on an earlier agreement in which the company was named a Main Automation Contractor for BP projects globally. By standardizing on a single contractor for its North Sea region, BP expects to gain significant benefits including efficient project execution, training, maintenance and support. Emerson will provide a wide range of services for control and safety systems, from front-end engineering and design to installation, testing and support.
BP Wins One US Court Ruling, Loses Another Over 2010 Gulf Spill
A U.S. appeals court said BP Plc, which in July reached a $18.7 billion settlement of federal, state and local claims over the 2010 Gulf of Mexico oil spill, must face one of two proposed class-action lawsuits claiming that the oil company defrauded shareholders over the disaster. The 5th U.S. Circuit Court of Appeals in New Orleans said investors who bought BP's American depositary shares in a 33-day period soon after the spill may pursue group claims that BP initially "lowballed" the oil flow rate, and that the share price tumbled as the crisis' magnitude became known.