SBM Offshore Hands over FPSO Turritella to Shell
SBM Offshore said it has completed the transaction related to the sale of floating production storage and offloading (FPSO) vessel Turritella to Shell E and P Offshore Services B.V. Shell exercised an option to purchase the FPSO from SBM Offshore in summer 2017. The Turritella FPSO is contracted for the Stones deepwater development in the Gulf of Mexico, which began production in 2016. The vessel has a daily production capacity of approximately 60,000 barrels of oil and 15 million cubic feet of natural gas.
BSEE Proposes Softening of Offshore Drilling Rules - WSJ
A U.S. regulator has proposed rolling back safety measures put in place after the 2010 Deepwater Horizon oil spill, which would reduce the role of government in offshore oil production, the Wall Street Journal reported on Monday. The Bureau of Safety and Environmental Enforcement (BSEE), which regulates offshore oil and gas drilling, proposes relaxing requirements to stream real-time data on oil production operators to facilities onshore, where they are available for review by regulators, the Journal reported.
Maersk Drilling Bags Contract with Tullow Ghana
Maersk Drilling has been awarded a four year contract for the deep-water drillship Maersk Venturer by Tullow Ghana Ltd. The contract, which was signed December 2017, is expected to commence in February 2018 and covers development drilling on the Jubilee and TEN fields offshore Ghana. Maersk Venturer is currently in transit for the job offshore Ghana thereby further strengthening Maersk Drilling’s presence in the region. ”I am very pleased that Maersk Drilling will be mobilising another deepwater rig for this significant job in a strategically important region.
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.
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.
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.
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.
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.
$100 Oil: Driving Deepwater Oil Services Boom
Deepwater is one of the few areas where good prospects of major oil finds still remain, and these are mainly outside the control of OPEC. In a note to clients today, John Westwood, MD of international energy analysts Douglas-Westwood said “over the past year the stock prices of a grouping of 10 companies with significant exposure to the sector (the Douglas-Westwood Deepwater Index) has risen by an average of 79% and one, Wellstream, by 157%”. Deepwater now accounts for almost 15% of total offshore oil and gas production, but over the next few years its total share relative to shallow-water output will grow, to around 20% of offshore production by 2011.
Cummings, Oberstar Introduce Act to Reform Deepwater
Congressman Elijah E. Cummings (D-MD), Chairman of the Subcommittee on Coast Guard and Maritime Transportation, introduced the Integrated Deepwater Program Reform Act to bring significant reform to the Coast Guard's highly troubled $24b, 25-year Deepwater acquisitions program. Chairman Cummings was joined in introducing the Act by Congressman James L. Oberstar (D-MN), Chairman of the full Committee on Transportation and Infrastructure. Among other reforms, the Act would prohibit the use of a private sector lead systems integrator for the Deepwater program two years after its enactment, require the use of full and open competition for acquisitions made under Deepwater…
Connaughton Signs Northeast Gateway Deepwater Port License
Sean T. Connaughton signed Excelerate Energy’s Northeast Gateway Energy Bridge Deepwater Port license today in Washington DC. Excelerate will build the Northeast Gateway deepwater port approximately 18 miles east of Boston, Massachusetts. Spectra Energy, formerly Duke Energy, will build a 16-mile subsea pipeline from its existing HubLine to the deepwater port site to transfer natural gas from the vessels into New England’s gas pipeline network. Excelerate Energy will construct and own the deepwater port, which will be operated by Skaugen Offshore and will accommodate Excelerate’s proprietary Energy Bridge Regasification Vessel (EBRV) fleet operated by Exmar NV. The port’s infrastructure will feature two submerged turret loading buoys supplied by Advanced Production and Loading.
R&B Falcon Announces Deepwater IV Contract with Texaco
R&B Falcon Corporation has confirmed a three-year drilling contract with Texaco for its newbuild 10,000-ft. water depth dynamically positioned drillship Deepwater IV, as a substitute for previously contracted Peregrine VIII. Texaco expects to begin a drilling program offshore West Africa shortly after the vessel's delivery, which is scheduled for the third quarter of 2000. Steve Webster, R&B Falcon's president and CEO, stated, "We are pleased to work with Texaco on its ultra-deepwater drilling program. This contract commitment, recently following the commitment by another deepwater operator for our 5th generation ultra-deepwater semisubmersible RBS8-D, reaffirms our view of the relative strength of the deepwater sector of the offshore drilling industry.
New Generation Drillship Goes to Work
Conoco and R&B Falcon Corp. announced Deepwater Pathfinder - a first-of-its-kind, ultra-deepwater drillship - began a five-year work program in the Gulf of Mexico. The ship, the first new build capable of drilling in 10,000 ft. of water, will fulfill a $400 million drilling program for Conoco. The vessel is expected to drill three or four wells in its first year of operation, with the first exploratory well being drilled at Garden Banks Block 783. Conoco has interests in 295 deepwater leases in the Gulf. The technological highlight of the ship is its dynamic positioning systems, wherein a specialized combination of seabed and satellite systems send signals to onboard computers.
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.
Dhirubhai Deepwater KG1 5-Year Contract
Transocean Ltd. (NYSE:RIG) announced that the ultra-deepwater drillship Dhirubhai Deepwater KG1 has commenced operations in India under a five-year drilling contract with Reliance Industries Limited. The company currently expects that Reliance will sublet the rig for the first four years of the contract to Oil and Natural Gas Corporation Limited, and that Reliance will operate the rig for the fifth year of the contract. The Dhirubhai Deepwater KG1 is the first of two ultra-deepwater newbuild drillships owned by a joint venture company with Pacific Drilling Limited and scheduled to commence operations in 2009 and 2010. The second ultra-deepwater newbuild drillship Dhirubhai Deepwater KG2 is also contracted and is scheduled to commence operations in 2010.
Latin America on the (Offshore O&G Spend) Move
While much attention rightfully is paid the development of offshore oil and gas spending offshore Africa, a new report claims that Latin America is one of the fastest growing regions globally, slated to exceed Africa's Deepwater spend by 2014. Speaking at the SUT Learning Luncheon in Houston Steven Kopits, Douglas-Westwood Director, commented, “For oil companies the overall outlook for 2012 is positive. The 12th edition of the World Deepwater Market Forecast forecasts a 90% growth in expenditure, compared with the previous five-year period, with $232 billion to be spent 2012-2016. The outlook for the deepwater business is clearly one of significant long-term opportunity.
Transocean Gets Contract
Transocean Inc. announced that the ultra-deepwater drillship Dhirubhai Deepwater KG2 (formerly Deepwater Pacific 2), which is owned by a joint venture in which the company has 50 percent interest, has been awarded a five-year drilling contract from Reliance Industries. The contract is expected to commence in the first quarter 2010 following shipyard construction, sea trials, mobilization to and customer acceptance. Contract revenues which could be generated over the first six months and remaining 54 months of the contract period are estimated to be $90 million and $838 million, respectively. In addition, Transocean announced that the first ultra-deepwater drillship owned by the joint venture…
Singapore Shipyard Contracted for Ultra-deepwater Drill Rig
Sembcorp Marine, Jurong Shipyard gets US$ 568-million contract for semi-submersible deepwater rig for North Atlantic Drilling Ltd. The new rig will be constructed based on the Moss Maritime CS60 design – an enhancement of the Moss Maritime CS50E MKII harsh-environment ultra-deepwater semi-submersible rigs West Pegasus and West Leo which were delivered by Jurong Shipyard to Seadrill in March 2011 and January 2012 respectively. Delivery is scheduled no later than the first quarter of 2015.
Samsung Heavy to Build Ocean Rig UDW Drillship
Ocean Rig UDW Inc. sign contract for Samsung Heavy Industries to construct a 7th Generation Ultra Deepwater (UDW) Drillship. This 7th Generation drillship is a sister ship to the three currently under construction at Samsung, and is scheduled to be delivered to the company in January 2015. Ocean Rig Ocean Rig is an international offshore drilling contractor providing oilfield services for offshore oil and gas exploration, development and production drilling, and specializing in the ultra-deepwater and harsh-environment segment of the offshore drilling industry. The company owns and operates 10 offshore ultra deepwater drilling units…
Subsea Ultra-Deepwater Market Alliance
Technip and Heerema Marine Contractors sign a worldwide alliance agreement to share in offshore sector activities. The two companies intend to combine their capabilities to help their clients best address the fast growing subsea ultra-deepwater market. Ultra-deepwater projects are expected to be the fastest growing part of the subsea market over the next several years, developments expected to have significant challenges for clients. For example, ultra-deepwater infield pipelines are forecast to grow at a yearly pace more than 15% between 2012 and 2017. • S-Lay and Reel-Lay assets of both companies, as needed. Technip and Heerema teams start to work together immediately to implement this exclusive agreement.
Transocean Rig Deepwater Horizon Extension
Transocean Ltd. (NYSE:RIG) announced that its ultra-deepwater semisubmersible rig Deepwater Horizon has been awarded a three-year contract extension by a subsidiary of BP p.l.c. (NYSE:BP) for operations in the U.S. Gulf of Mexico commencing in September 2010. Estimated contracted revenues related to the three-year contract extension are approximately $544m. Estimated contract revenues represent the maximum amount of revenues that may be earned in the firm contract period, excluding revenues for mobilization, cost escalations, customer reimbursed equipment and miscellaneous adjustments. The Deepwater Horizon is one of 41 High-Specification Floaters in the Transocean fleet, 20 of which are ultra-deepwater drillships and semisubmersible rigs.
R&B Falcon Completes $270 Million Project Financing
Deepwater Drilling II L.L.C., a limited liability company owned by affiliates of R&B Falcon Corporation and Conoco, has concluded a $270 million project financing. The project financing proceeds will be used to finance the construction cost of ultra deepwater drillship, Deepwater Frontier, which was delivered from Samsung Shipyard in South Korea in March 1999. The 10,000-ft. water depth capable Frotnier has already drilled one well in New Zealand and is currently mobilizing to another location offshore West Africa. A Bank of America affiliate, BA Leasing & Capital Corporation, was the agent for the transaction. Paul B. Loyd, Jr., R&B Falcon's chairman and CEO…
Ocean Rig Charter Out 'Erik Raude'
Ocean Rig UDW Inc., a global provider of offshore deepwater drilling services, signs contract with an oil major for the semi-submersible drilling rig 'Erik Raude'. The drilling contract is for a one-well program, with an estimated duration of up to 6 months, for drilling offshore Ireland, with an estimated backlog of approximately US$112 million, including mobilization and demobilization. The rig is scheduled to commence this contract in the second quarter of 2013, in direct continuation from its previous contract in West Africa.