Transocean's contract backlog $11.3 Bln on February 9
Transocean Ltd. (NYSE: RIG) today issued a quarterly Fleet Status Report that provides the current status of and contract information for the company's fleet of offshore drilling rigs. As of February 9, 2017, the company's contract backlog was $11.3 billion. On December 31, 2016, the newbuild ultra-deepwater drillship Deepwater Conqueror commenced operations on its 5-year contract in the U.S. Gulf of Mexico at a dayrate of $589,000. The customer has elected to exercise its contractual option to terminate the contract for the ultra-deepwater drillship Deepwater Asgard effective January 2017.
Storm Warnings Raised over Readiness Concerns
By Capt. Gordon I. This June's two-year anniversary of the Coast Guard's award of contract for the Integrated Deepwater System reflects steady progress in efforts to modernize the nation's maritime guardians, but heightened concerns over falling readiness have led some congressional lawmakers to renew calls to accelerate the comprehensive 20-plus-year recapitalization program. Coast Guard Commandant Adm. Thomas H. Collins described his concern over current readiness trends in early March during congressional testimony on the Bush administration's proposed fiscal year 2005 budget. "Our greatest threat to mission performance continues to be that our aircraft…
The Coast Guard's Integrated Deepwater System
President Bush's visit with Coast Guard units in the Port of Philadelphia, Pa., in March placed a well-deserved spotlight on their critical role safeguarding the nation's maritime homeland security. Funding increases to the Coast Guard's budget over the past two years have significantly improved the service's current operational posture and readiness. At home, Coast Guard units have been working side-by-side with other agencies in the Department of Homeland Security to ensure the safety of U.S. ports, waterways, and coastal regions. Operational excellence also characterizes operations in the Coast Guard's other traditional missions. Illegal drug seizures during 2002, for example, ranked as the third largest in history.
SBM Offshore Raises Outlook Buoyed by Deepwater Spending
SBM Offshore, a Dutch provider of floating oil and gas production vessels, raised its core earnings guidance on Wednesday citing clients slowly spending more on deepsea projects. "Deepwater is becoming attractive again. It's on a par from an economic standpoint with shale oil," said Chief Executive Bruno Chabas, in reference to a recovery in spending which fell after a sharp drop in oil prices in 2014. Due to low production costs, the shale oil market has attracted huge investments, especially in the United States, and outperformed investor interest elsewhere in the oil market.
Transocean Retires Six Floaters
Transocean announced its intent to retire the ultra-deepwater floaters GSF Jack Ryan, Sedco Energy, Sedco Express, Cajun Express, and Deepwater Pathfinder, and the deepwater floater Transocean Marianas. The rigs will be classified as held for sale and will be recycled in an environmentally responsible manner. All six rigs were previously cold stacked. The company will recognize an impairment charge of approximately $1.4 billion during the third quarter of 2017 associated with these actions.
China's First Deepwater LNG Pipe-Layer Sets Sail
The vessel has set sail for the “Liwan 3-1” gas field in the South China Sea today and will prepare for pipe laying works. “HAI YANG SHI YOU 201” not only deploys world-leading offshore engineering technology, but also marks the first self-design and self-build deepwater offshore engineering vessel project in China, advancing the nation’s deepwater resources exploration strategy. As the flagship of CNOOC’s deepwater exploration fleet, “HAI YANG SHI YOU 201” is planned to arrive at the “Liwan 3-1” gas field in June after departing from Qingdao.
Transocean Wins BHP Work
Transocean announced that the ultra-deepwater drillship Deepwater Invictus was awarded a two-year contract plus three one-year priced options with a subsidiary of BHP Billiton. The backlog associated with the firm contract is approximately $106 million. The contract is expected to commence in the second quarter of 2018. “We are extremely pleased to continue working with BHP,” said President and Chief Executive Officer Jeremy Thigpen. “Since we welcomed the Invictus into our fleet in 2014…
ZEG Begins Deepwater Operations Study
Ziff Energy Group (ZEG), a leading North American energy consulting firm, with offices in Houston and Calgary, announces the launch of the 6th edition of its Deepwater Reducing Field Operating Costs (RFOC) study, which will evaluate 2006 operating costs for more than 2 dozen Deepwater producing assets in the Gulf of Mexico. Participation will include 9 Deepwater operators, who collectively account for over 80% of the 1.36 million barrels of oil equivalent per day (MMBOE/d) produced in the Deepwater region of the Gulf of Mexico (see map below for the locations of the floating production assets to be included; the study will also include fixed and subsea assets). Ziff Energy’s last Deepwater study was conducted 3 years ago, assessing 2003 data.
'Deepwater Horizon' Filmmakers Say Authenticity a Priority
A top priority for a new movie about the deadly 2010 Gulf of Mexico oil spill was ensuring it accurately depicted the disaster that killed 11 workers, its director and main actor said. "Deepwater Horizon", which had its world premiere at the Toronto International Film Festival on Tuesday evening, focuses on the hours before and after the rig explosion on April 20, 2010 that led to the worst offshore oil disaster in U.S. history. Directed by Peter Berg, the film stars Mark Wahlberg as Mike Williams, the real life worker who was one of the last people to escape from the burning rig.
BP Deepwater Horizon Costs Balloon to $65 Billion
BP said on Tuesday it would take a new charge over the 2010 Deepwater Horizon spill after again raising estimates for outstanding claims, lifting total costs to around $65 billion. The post-tax, non-operating $1.7-billion charge BP will take in its fourth quarter results came after claims resolved in recent months were about seven times higher than anticipated, the London-based company said. The claims were part of the Court Supervised Settlement Program that was set up in the wake of the disaster and included nearly 400,000 cases, BP said.
Total Announces Major Deepwater Oil Discovery in US Gulf
French oil and energy group Total said on Wednesday that it had made a significant oil discovery at the Ballymore prospect in the deep offshore in the U.S. Gulf of Mexico, its largest discovery in the area. "This major discovery gives us access to large oil resources and follow on potential in the emerging Norphlet play," Arnaud Breuillac, Total's president for exploration and production, said in a statement. "While already deemed commercially viable, we will work together on the appraisal of this discovery and a cost-effective scheme to ensure a rapid, low breakeven development," he added. An assessment of the resource estimate was ongoing, the company said, adding that the discovery will bolster Total's new exploration strategy put in place since 2015.
Shell Makes Big Deepwater Oil Discovery in Gulf of Mexico
Oil major Royal Dutch Shell said its U.S. unit had made one of its biggest oil discoveries in the past decade in the Whale deepwater well in the U.S. Gulf of Mexico. The Whale is operated by Shell and co-owned by U.S. oil giant Chevron Corp. "Evaluation of the discovery was ongoing, and appraisal drilling is underway to further delineate the discovery and define development options," Shell Offshore Inc said in a statement without giving figures. Shell has three Gulf of Mexico deepwater projects under construction -- Appomattox, Kaikias and Coulomb Phase 2. It has added more than one billion barrels of oil equivalent (boe) resources in the last decade in the Gulf of Mexico.
Mark Wahlberg Hopes 'Deepwater Horizon' Film Honors Victims
Actor Mark Wahlberg said "the biggest responsibility" for himself and the makers of the new movie, "Deepwater Horizon," was to honor the real-life victims of the 2010 oil rig disaster. "The oil can ultimately be cleaned up, (but) those 11 men can't be replaced," Wahlberg told Reuters at the film's London premiere on Monday. "Those were fathers, brothers, husbands, uncles, cousins. We can't replace those guys and so when they approached me about doing this film, I thought, 'What better way to promote their story'," he added.
BP Decries Deepwater Horizon Film as Inaccurate
BP has criticized the new "Deepwater Horizon" film as being an inaccurate Hollywood dramatization of the deadly oil rig disaster in the Gulf of Mexico in 2010. "The Deepwater Horizon movie is Hollywood's take on a tragic and complex accident. It is not an accurate portrayal of the events that led to the accident, our people, or the character of our company," the British oil and gas company said in a statement on its website. "Deepwater Horizon," which is released in the United States on Friday…
Lifetime Assessment for Deepwater Moorings
Mooring integrity is an important concern in the offshore industry . Mooring leg failures can have significant consequences, such as temporary shutdowns and require unplanned, thus expensive, repairs. On the other hand, an over dimensioned design leads to higher loads acting on the floating facilities and a large investment. Meanwhile, the development of deepwater projects has led to the discovery of the new fatigue mechanism of ‘Out of Plane Bending’ . This means that the design of moorings requires more detailed analysis to ensure the integrity of the mooring system.
Transocean Puts Off Deliveries of Two New Drillships
Transocean Ltd. announced today a mutual agreement with its customer, Shell EP Wells Equipment Wells Services B.V. (Shell), and the shipyard, Daewoo Shipbuilding & Marine Engineering Co. (DSME), to delay the operating and delivery contracts of two newbuild ultra-deepwater drillships - the Deepwater Pontus and the Deepwater Poseidon - by 12 months each. The delay has no impact on the duration or dayrate of the original 10-year operating contracts for each of the two newbuild ultra-deepwater drillships. Parties will be compensated for the postponement. The specific terms are not disclosed.
Deepwater: $25B annually by 2012
A new study published today by analysts Douglas-Westwood The World Deepwater Market Report 2008-2012 forecasts that nearly $25 billion will be spent annually in deepwater capital expenditure by 2012. Speaking at the Deep Offshore Technology International Conference 2007, Stavanger, today, John Westwood, Douglas-Westwood MD commented that “the deepwater oil & gas industry is set for continued growth through to 2012, with over 30% growth forecast for the 2008-2012 period when compared with the previous five years. ”Deepwater oil production currently accounts for almost 15% of total offshore production, but over the next few years its share relative to shallow water output will grow – accounting for around 20% of offshore production by 2011.
ExxonMobil Wins Eight Deepwater Blocks in Brazil
ExxonMobil has increased its holdings in Brazil’s pre-salt basins after winning eight additional exploration blocks during Brazil’s 15th bid round. The blocks awarded add about 640,000 net acres to the ExxonMobil portfolio. Six of the eight newly awarded blocks will be operated by ExxonMobil. The additional blocks expand the company’s total position in the country to more than two million net acres, making it one of the largest acreage holders among international companies in Brazil.
USCG Commandant Testifies on Deepwater Plan
WASHINGTON - The Commandant of the Coast Guard, Adm. Thomas H. Collins, testified on July 21, 2005, before the House Appropriations Subcommittee on Homeland Security regarding the Coast Guard's revised plan to replace its aging fleet of deepwater assets. Collins's written statement follows. "Good morning, Mr. Chairman and distinguished Members of the Subcommittee. Thank you for taking the time to meet again to discuss the Integrated Deepwater System’s revised implementation plan. It is the number one Coast Guard priority and the cornerstone of our maritime capabilities now and in the future. As such, I appreciate very much the continued time and deliberation you have been willing to spend to examine all aspects of the acquisition.
Deepwater Topic of Congressional Hearing
Implementation of the U.S. Coast Guard’s program to replace and modernize over 90 ships and 200 aircraft used in its offshore missions - including drug and migrant interdiction, homeland security and fisheries law enforcement - will be the topic of a Congressional oversight hearing on Wednesday. The hearing by the U.S. House Subcommittee on the Coast Guard and Maritime Transportation, chaired by U.S. Rep. Frank LoBiondo (R-NJ), is scheduled to begin at 2 p.m. on Wednesday, April 20th in 2167 Rayburn House Office Building. - Admiral Thomas A. Accompanied by Rear Admiral Patrick M. The Coast Guard began planning a recapitalization program to replace existing deepwater-capable assets in 1996.
USCG Deepwater: Centerpiece of Coast Guard Transformation
By Gordon I. Throughout the Cold War, the need to maintain strong military forces to deter war with the Soviet Union and the Warsaw Pact was a mainstay of U.S. national security policy. During today's global war on terrorism, similar linkages exist between a more capable U.S. Coast Guard, improved homeland security, and the deterrence or defeat of a terrorist attack in the maritime domain. The 9/11 Commission Report clearly describes this nexus. "Our report shows that the terrorists analyze defenses," the Commission wrote. "They plan accordingly. Defenses cannot achieve perfect safety. They make targets harder to attack successfully, and they deter attacks by making capture more likely.
Offshore Deepwater Rebound?
Statoil was awarded blocks 1 and 3 in the Saline Basin in the Deepwater exploration tender in the Mexican Round 1. The blocks cover an area of about 5,650 km2 (18,500 square miles) in the largely unexplored deepwater areas of the Saline Basin. Statoil will be the operator of blocks 1 and 3, at 33.4% equity, with partners BP and Total participating equally with the remaining equity. The licences were awarded in a competitive bid round. A total of 10 deepwater blocks were on offer, with four in the Perdido Area and six in the Saline Basin.
Shell Awards Deepwater Installation Contract in GOM
In another sign that activity in the moribund offshore sector is starting to loosen, Jumbo said that it has won the installation contract for the Shell deep-water Vito development in the US Gulf of Mexico. The Vito development is located in the Mississippi Canyon, approximately 150 miles south of New Orleans in water depth of more than 4,000 feet. Jumbo’s installation contract involves the initial pre-lay of the mooring system as well as the subsequent tow and hook-up of the FPS. "The Jumbo Offshore team is very grateful to Shell for this opportunity.