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Friday, December 15, 2017

Bp Amoco News

BP Amoco Announces Four Major Deepwater Finds

BP Amoco announced four significant oil discoveries in the deepwater Gulf of Mexico, including the largest made to date by any company. These major exploration successes add to an already significant reserves base in the deepwater Gulf and demonstrate BP Amoco's leading position in this technically challenging area. Largest of the discoveries is the Crazy Horse prospect, located in 6,000 ft. water depth in the Boarshead basin, 125 miles south-east of New Orleans. With estimated recoverable oil of at least one billion barrels of oil equivalent (boe), it is the biggest discovery ever in the Gulf deepwater. BP Amoco is operator and holds a 75 percent interest. Partner Mobil holds 25 percent equity. The other three discoveries are located in water depths varying from 4,000 to 6,500 ft.

Rowan Gorilla V Contract Dispute Is Resolved

Rowan Companies, Inc. reported that an agreement has been reached to resolve a dispute over the Rowan Gorilla V contract between its subsidiary, British American Offshore Limited (BAO), and Amoco (UK) Exploration Company (Amoco UK), now owned by BP p.l.c. The settlement agreement was made between BP Amoco Corporation, BP Amoco p.l.c., BP Exploration Operating Company, BP America, Inc., Amoco (UK) Exploration Company ("Amoco UK"), Amoco Production Company, Amerada Hess Limited, Amerada Hess Corporation and Enterprise Oil p.l.c. (collectively, the "BP Amoco Affiliated Parties") on the one hand, and Rowan Companies, Inc., LeTourneau, Inc. and British American Offshore Limited ("BAO") (collectively, the "Rowan Affiliated Parties") on the other.

BP-Amoco and ARCO in $26.8 Billion Deal

BP Amoco confirmed, following a successful outcome to talks between the two companies, it has reached agreement to combine with the Atlantic Richfield Company (ARCO) of Los Angeles. The all-share transaction, approved by the boards of both companies, will involve the exchange of 0.82 BP Amoco American Depositary Shares (ADS) for each ARCO share. The deal will substantially boost BP Amoco's reserves and production, giving it the largest oil output of any non-state company, and will consolidate its position in Alaska where the resulting synergies and cost-savings are likely to increase the region's competitiveness and significantly encourage future investment. Elsewhere, onshore the U.S.

ARCO Shareholders Approve BP Amoco Takeover Bid

Giant oil companies are going to be the sole survivors in an increasingly competitive market, the chairman of Atlantic Richfield told stockholders Aug. 30 as they approved a takeover bid. Shareholders of Los Angeles-based ARCO, the seventh- largest U.S. oil company, agreed to a sale of the company to BP Amoco Plc, in a $29 billion stock swap that creates the largest private-sector oil producer in the world. Chairman and Chief Executive Mike Bowlin told a crowd of more than 400 shareholders, mostly retirees of ARCO, that tighter competition and volatile industry conditions spurred the proposed sale. "Two events in 1998 caused the board to reevaluate the future of the company and that was the consolidation of the market and crude oil prices at their lowest levels in...years," he said.

BP Amoco Tightens Rules For Old Tankers

Global oil major BP Amoco has introduced new rules to restrict the chartering of older oil tankers a month after the Erika disaster that polluted 400 km of the France's coastline. BP Amoco is insisting that vessels of 100,000 deadweight tons (dwt) and above between 20 and 25 years old will have to conform to extra safety conditions. Ships between 20,000 and 100,000 dwt aged 25 to 30 will also have to provide the higher Condition Assessment Program (CAP 2) rating from an acceptable vessel classifier. CAP 2 requires 20-year-old tankers to attain standards that would have been expected when the ships were 10 years old. The company's moves were part of a policy to strengthen its tanker vetting procedures that started before the spill from Erika, which was 25 years old.

BP Amoco and Arco Plan Combination

BP Amoco and Atlantic Richfield Co (ARCO) said they intend to take the next formal step towards closing the combination of the two companies. They accordingly propose to re-start the required 20-day notice, suspended on November 2, 1999, to the US Federal Trade Commission (FTC). The FTC has to date expressed concerns about the combination - concerns not shared by the companies. While the companies firmly believe the combination would enlarge, rather than adversely affect, competition, they have offered, but failed to get FTC acceptance for, a range of measures designed to meet the FTC's expressed concerns. BP Amoco and ARCO's proposed $26.8 billion combination was announced on April 1, 1999, with synergies and cost-savings estimated at $1 billion a year.

Crowley Now Operating Tanker Prudhoe Bay

Crowley Petroleum Transport, Inc., a Long Beach, Calif.-based subsidiary of Crowley Maritime Corporation, is now operating the tanker Prudhoe Bay chartered to ARCO Products, Inc., a wholly owned subsidiary of BP Amoco. The Prudhoe Bay, formerly the Arco Prudhoe Bay, is a 70,000 DWT steam tanker with a capacity of 478,000 barrels. There are 13 epoxy-coated cargo tanks on the ship, which is 810 ft. long with a 105 ft. beam and a maximum draft of 44 fet. Prudhoe Bay is currently trading on the West Coast, primarily in Puget Sound. Crowley, the largest independent operator of petroleum barges and tankers on the West Coast, also owns and operates the 40,000 dwt tankers Coast Range and Blue Ridge. Each offers 300,000 barrels of capacity.

Exxon, Mobil Address EU Concerns Regarding Merger

Exxon Corp. and Mobil Corp. have moved to address European Commission concerns about their merger in the natural gas sector in Germany and over an existing European joint venture between Mobil and BP Amoco Plc, a Commission spokesman said. The Commission was also no longer concerned that the $80 billion merger and a rival deal between BP Amoco and Atlantic Richfield would result in excessive consolidation in oil exploration, the spokesman added, paving the way for regulatory approval in the European Union. The news that the Commission has dropped fears the two oil mergers could significantly reduce competition in the upstream sector…

BP Amoco Shipping and BIMCO Develop a New Tank Charterparty

Last week it was announced that BP Amoco Shipping and BIMCO had developed a new charterparty, as the BIMCO Documentary Committee gave its approval to a new standard tank time charterparty, code named BPTIME3. BP Amoco Shipping, which has a long tradition of developing tank charterparties, saw it as its objective to draft a new time charterparty applying clear language and striking a good balance between the two parties. "We wanted to draw up a charterparty that is easy to read, easy to use and reflects the interests of both parties," said Adrian McMahon, BP Amoco Shipping's Manager Chartering and Operations. "We felt that in order to ensure that the right balance was struck it was important to bring the ship owners into the process…

BP Amoco Wins Bids On Australian Acreage

BP Petroleum Developments (NWS) Pty Ltd., the Australian exploration arm of BP Amoco Plc, has reportedly bid successfully on three Canning Basin blocks off the coast of Western Australia.

Samsung Lands $330 Million in Orders

South Korea's Samsung Heavy Industries Co. said on Saturday it won $330 million in orders to build a liquefied natural gas (LNG) carrier for BP Amoco Plc and two large container vessels for Hong Kong's Orient Overseas Container Line Ltd (OOCL) - scheduled for delivery in early 2004. BP Amoco would pay Samsung Heavy $170 million for a 138,000-cu. m. LNG carrier, a Samsung spokesman said. The two container ships for OOCL, a unit of Hong Kong-based Orient Overseas International Ltd would measure 7,400 TEU.

BP Amoco Grants Project To Coflexip Stena Offshore

Coflexip Stena Offshore has reported that its Norwegian entity, CSO Norge, has received a letter of intent from BP Amoco for engineering, construction and installation works to support the development of its Tambar Subsea field offshore Norway, located in the block 1/3 in 70 m of water. The contract calls for the engineering, construction and installation of 16km of eight-inch 13 percent chrome rigid pipe between the Ula and Tambar platforms. A CSO Group spoolbase will fabricate the rigid pipe, while the installation will be performed by CSO Apache during Spring 2001.

BP Amoco Announces Record Quarter

BP Amoco p.l.c. reported its third quarter 1999 results. Third quarter 1999 replacement cost profit, before exceptional items, was $1.95 billion, after adjusting for special charges of $212 million. This is an increase of 72 percent on a year ago, reflecting the higher oil price and underlying performance improvements. Against the third quarter of 1998, performance improvements contributed around $400 million, reflecting higher volumes and lower cash costs, with the original BP Amoco merger prize of $2 billion per year before tax now fully achieved. The nine months' result, adjusted for special items, was $4.1 billion, up 15 percent on a year ago.

BP Amoco To Update Mammoth GOM Oil Discovery Soon

BP Amoco Plc said it should be able to provide an update on its giant Crazy Horse deepwater oil discovery in the Gulf of Mexico when two appraisal wells are completed during the next couple of months. "I would say the preliminary results are very encouraging and hopefully we will have some news in the near future," BP Amoco's Houston region Vice President David Welch told reporters after addressing the American Petroleum Institute's Houston chapter. The London-based company announced the Crazy Horse discovery last year, estimating that it contained reserves of at least one billion barrels of oil, making it the biggest ever deepwater discovery in the Gulf of Mexico.

Oil Giants To Offer Marine Fuels Site

BP Amoco Plc., Royal Dutch/Shell, Texaco Inc., and Chevron Corp. are developing an Internet site allowing energy companies to buy and sell fuel for ships. The companies said the site (www.OceanConnect.com) would be up and running by the second quarter of this year, marking the latest in a series of projects by energy companies aiming to jump into e-commerce.In the past week Shell, Chevron, and Norway's state-run Statoil have all unveiled separate Internet ventures in an effort to save costs. OceanConnect.com will provide users with up-to-the-minute market and weather information and feature an auction site and e-mail-enabled transactions for purchase and sale of marine fuels and services, the company said.

BP Amoco and ARCO Prepare for Litigation

Following the decision of the U.S. Federal Trade Commission (FTC) to oppose the proposed combination of BP Amoco and ARCO, the two companies reaffirmed their intention to pursue the issue in court. The companies said in a joint statement: "We are surprised and disappointed the FTC has rejected all efforts for a positive resolution. We have consistently been open to improvement of our original proposal. We have addressed the concerns of the State of Alaska. We have been, and remain, willing to discuss any reasonable options that might lead to a negotiated settlement. The statement added: "Any suggestion there is a special West Coast market for Alaskan crude oil that functions independently of world crude prices is without foundation.

Discoverer Enterprise Begins Contract With BP Amoco

Transocean Offshore Inc.'s drillship Discoverer Enterprise has been accepted by BP Amoco and has begun work under a five-year contract with BP Amoco valued at more than $360 million. Dynamically positioned Discoverer Enterprise is the first of a new class of advanced, ultra-deepwater drillships employing the company's proprietary dual-activity drilling system. The vessel has completed equipment appraisal and testing in more than 6,100 ft. of water at BP Amoco's Neptune location in the U.S. Gulf of Mexico. It is currently completing plug-and-abandonment work, and after that, it is expected to begin drilling an appraisal well in the Crazy Horse field.

BP Amoco Awards Offshore Contracts

BP Amoco selected two companies to provide $1 billion worth of construction work on a number of its deepwater oil projects in the Gulf of Mexico. The company selected J. Ray McDermott and Heerema Marine Contractors for work and services on the projects, including the Crazy Horse, Mad Dog, Holstein and Atlantis developments. The agreement with McDermott is expected to bring as much as $600 million in work to the company's Amelia fabrication yard at Morgan City, La.. The agreement with Heerema Marine could be worth $400 million, BP said. The contracts are the first for construction on BP's current deepwater discoveries. BP plans to begin installation of the deepwater facilities in 2002-2003.

R&B Falcon Lands Drilling Contracts for Semisubmersibles

R&B Falcon Inc. has been granted a contract by Petro-Canada, utilizing the fourth-generation semisubmersible Henry Goodrich for the development of the Terra Nova field offshore eastern Canada. The agreement with Petro-Canada provides for a firm two-year period commencing during the first quarter of 2000, following the unit's completion of its current drilling program with BP Amoco in the U.K. The total contract value amounts to an estimated figure of $74 million with Petro-Canada having the option to extend the primary term of the contract for up to an additional three years with rates to be determined based on a market mechanism. Additionally, the company announced that Arcade Drilling AS received a fixed term extension with BP Amoco through late July 2000 for Paul B. Loyd, Jr.

R&B Falcon Lands Drilling Contracts for Semisubmersibles

R&B Falcon Inc. has been granted a contract by Petro-Canada, utilizing the fourth-generation semisubmersible Henry Goodrich for the development of the Terra Nova field offshore eastern Canada. The agreement with Petro-Canada provides for a firm two-year period commencing during the first quarter of 2000, following the unit's completion of its current drilling program with BP Amoco in the U.K. The total contract value amounts to an estimated figure of $74 million with Petro-Canada having the option to extend the primary term of the contract for up to an additional three years with rates to be determined based on a market mechanism. Additionally, the company announced that Arcade Drilling AS received a fixed term extension with BP Amoco through late July 2000 for Paul B. Loyd, Jr.

Transocean Sedco Forex Gets BP Amoco Contract

An operating subsidiary of Transocean Sedco Forex Inc. has entered into a contract with BP Amoco for the semisubmersible Transocean Rather. The agreement covers one well, with a minimum duration of 120 days, plus an option to drill two additional wells in direct continuation. The drilling program is expected to commence in the U.S. Gulf of Mexico on or around April 1, 2000 and will generate an estimated $9.6 million in revenues. Also, the company said its semisubmersible Transocean Richardson has completed a drilling program in the U.S. Gulf of Mexico with Kerr-McGee Corp. and is now under contract to Anadarko Petroleum to drill two wells over an estimated 60-day duration.

BP Amoco Orders Two LNG Carriers From SHI

BP Amoco ordered two liquified natural gas (LNG) ships, with options to purchase three more, from Samsung Heavy Industries Co for in excess of $300 million. The oil giant, which is the world's second largest non-state producer of natural gas, said construction will start in April 2001 with delivery of the first ship in the fourth quarter of 2002 and the second in the first quarter of 2003. "This order is part of our strategy for rapidly growing our internationally traded gas business. It is unusual in that it does not follow the traditional convention of tying vessel orders to specific gas sources and specific gas customers," said Richard Flurry, chief executive, Gas and Power in a statement.

BP Amoco Tanker Sets Sail For Texas

A BP Amoco oil tanker stranded off the coast of Bermuda for 12 days with engine problems set sail for Freeport, Texas after repairs were completed. The British Valour, carrying 300,000 tons (2.2 million barrels) of North Sea crude oil and a crew of 22, broke down 92 miles (148 km) southeast of the British dependent territory on March 18 after suffering a crankcase explosion. No one was injured and no oil spilled. Engineers on the Delaware-based tugboat Powhatan boarded the ship on Saturday to begin repairs and completed their work at midday on Thursday, said a spokesman for Bermuda-based Harbor Radio, which monitors shipping movements. The tanker was chartered by Norway's state oil company Statoil.

Maritime Reporter Magazine Cover Dec 2017 - The Great Ships of 2017

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