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Tuesday, January 16, 2018

Deepwater Contract News

DHS Report Shows Need for Transformation of Coast Guard's Contracting Processes

U.S. Congressman Elijah E. Cummings (D-MD), Chairman of the Subcommittee on Coast Guard and Maritime Transportation, issued the following statement in response to the release of the Department of Homeland Security (DHS) Office of Inspector General's (IG) report on the 110-foot/123-foot patrol boat modernization project. This report was developed by the DHS IG following the receipt of a Hotline Complaint alleging that the 123-foot patrol boat and the 24.6-foot prosecutor crafts designed to be launched from the 123-foot cutter and other larger cutters contained safety and security vulnerabilities due to the failure of contractors installing new equipment on the crafts to meet the requirements of the Deepwater contract.

Chairman Cummings Applauds Coast Guard's Move to Take Back the Helm of Deepwater Contract

Washington, D.C.-U.S. Congressman Elijah E. Cummings (D-MD), Chairman of the Subcommittee on Coast Guard and Maritime Transportation, applauded the Coast Guard for the changes it announced today to the Deepwater Acquisition Program. "Today, the Coast Guard has moved decisively to take back the helm of the Deepwater contract and to right this floundering procurement program. "Deepwater has had problems since its inception stemming from failures both on the part of the Coast Guard to exercise effective managerial oversight and on the part of the contractors working on the program to make quality and the full satisfaction of contractual requirements their top priorities.

Ship Systems Awarded Deepwater Contracts Worth $129M

long lead material procurement for the U.S. Coast Guard's first new National Security Cutter (NSC). The combined contracts mark the first step in the development and delivery of this new class of cutters set to replace the Coast Guard's aging fleet of surface vessels. Integrated Coast Guard Systems (ICGS) awarded the contracts under the Coast Guard's Integrated Deepwater System Program. supports our design effort in the U.S. Program," said Dr. Philip A. president and president of the company's Ship Systems sector. contract design phase was recently completed. in 2006. Guard's 200-year history. logistics systems. estimated to total $17 billion over the life of the program. would threaten the security of our homeland," Dur said. "The U.S.

CNOOC, Devon Energy Corporation Sign PSC

China National Offshore Oil Corporation (CNOOC) signed a production sharing contract (PSC) with Devon Energy Corporation for deepwater block 42/05. Block 42/05, located in Baiyun Sag of Pearl River Mouth Basin in the Eastern South China Sea, covers a total area of 6,939 square km. with water depth ranging from 300 to 2000 m. The company has acquired 2-D seismic data in the block. Under the terms of the contract, Devon is committed to conduct a 3-D seismic survey and wildcat drilling during the exploration period. All expenditures incurred during exploration period will be borne by Devon. CNOOC Ltd., a subsidiary of CNOOC, has the right to participate in up to a 51% interests in the event of any commercial discovery in the block.

Rear Adm. Blore Tours Cutter

U.S. Coast Guard Rear Adm. Gary T. Northrop Grumman's facility in Pascagoula, Miss. James Anton, executive vice president of Integrated Coast Guard Systems, left, and Royce Winbush, general ship superintendent, right, escorted Rear Adm. Blore through various areas of the new ship. Bertholf, a 418-foot Legend-class cutter, is part of the Integrated Deepwater System, a critical multi-year, multi-billion dollar program to modernize and replace the Coast Guard's aging ships and aircraft, and improve command-and-control and logistics systems. Lockheed Martin, is handling the Deepwater contract. Cutters as part of the Deepwater program. mast background. christened this fall.

Coast Guard Awards Deepwater Contract Under New Management

According to reports, the Coast Guard has awarded the first contract under its new management structure for the Deepwater program. The Coast Guard said in June that it would assume overall management duties for the troubled project, which includes a wide range of ships, aircraft and other systems. Lockheed Martin Corp. (LMT) and Northrop Grumman Corp. (NOC), the program's prime contractors through their Integrated Coast Guard Systems joint venture, were stripped of their lead systems integrator role. But the two contractors remain on deck to continue program work, through an extension of their umbrella contract. Now the Northrop-Lockheed team has finalized details on a $53m contract for a range of systems engineering and design work.

Seadrill Awarded Deepwater Contract for West Sirius

Reference is made to the Letter of Intent disclosed to the Oslo Stock Exchange September 7, 2006 regarding the assignment awarded the deepwater semi-submersible drilling rig West Sirius. Seadrill today confirms that the operator Devon Energy Corporation has signed the long-term contract to utilize the West Sirius in the Gulf of Mexico. The contract includes a four year assignment with the option for the operator to extend the contract to five or six years. Estimated contract value for the four year period is approximately $ 690m. West Sirius is currently under construction at the Jurong Shipyard in Singapore and is scheduled for delivery in the second quarter 2008.

Coast Guard Extends Deepwater Contract

According to reports, the Coast Guard extended the contract for the troubled multibillion-dollar modernization program with Lockheed Martin Corp. and Northrop Grumman Corp. Despite internal and congressional scrutiny of the 25-year, $24b program dubbed Deepwater, the 43-month extension with the defense contracting joint venture, Integrated Coast Guard Systems, was expected. But the deal does not guarantee the award of any future task orders to ICGS and the value of the contract will be determined by further negotiations as the companies submit specific work proposals, according to the Coast Guard. Source: AP

SBM Offshore Hands over FPSO Turritella to Shell

Turritella (Photo: 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.

USCG Announces Deepwater Decision

The U.S. Coast Guard announced a 43-month award term extension of the performance-based contract for its Integrated Deepwater System (Deepwater) fleet modernization and recapitalization program. Integrated Coast Guard Systems (ICGS), a joint venture between Lockheed Martin and Northrop Grumman, received notification of the award today. The performance period of the award term will begin at completion of the base period in June 2007 and end in January 2011. The initial contract specified a five-year base period of performance, with potential for five additional award terms of up to 60 months each, for a maximum of 30 years. The announcement by Rear Adm. Patrick M.

Cummings: Resolving Deepwater Will Require a Long Term Commitment

U.S. Congressman Elijah E. Cummings (D-MD), Chairman of the Subcommittee on Coast Guard and Maritime Transportation, convened a Subcommittee hearing to examine the Coast Guard's fiscal year 2008 budget and to receive testimony from the U.S. Department of Homeland Security's (DHS) Inspector General, Richard Skinner, and a representative of the Government Accountability Office (GAO), Mr. Stephen Caldwell, regarding their on-going examinations of the Deepwater procurement. Congressman Cummings said, "Today's hearing provided the Subcommittee's first opportunity to examine the Coast Guard's fiscal year 2008 budget and to begin the development of the new Coast Guard reauthorization.

T&I Committee Urges Coast Guard to Examine Future of Deepwater Contract

James L. Oberstar (Minn.), Chairman of the Committee on Transportation and Infrastructure, and Rep. Elijah E. Cummings (Md.), Chairman of the Subcommittee on Coast Guard and Maritime Transportation, today called on the U.S. Coast Guard to restructure the Deepwater Program, which is critical to the mission readiness of the Coast Guard. Under the Deepwater Program, the Coast Guard is procuring 91 cutters, more than 100 small surface craft, and 244 new or converted aircraft, including helicopters and fixed-wing airplanes. "Congress has seen time and time again that the Executive Branch is trying to contract out program management duties that should be carried out by Federal employees.

Future of USCG Deepwater Clouded

In the wake of Coast Guard Commandant’s Thad Allen’s report to Congress regarding the Coast Guard and the 2008 budget, question linger as to the progress and future direction of the Integrated Deepwater System (IDS), the Guard’s far-reaching but recently embattled plan to replace or modernize major Coast Guard cutters, offshore patrol boats, fixed-wing aircraft, multi-missioned helicopters and the communications equipment, sensors, and logistics systems. In his appearance before the U.S. It appears that all options are open regarding the future of the contract. We need to evaluate all options, and we haven't made a decision yet, Allen said, according to a Bloomberg report. We're asking, can the contract be modified to meet some of the goals expressed in the hearing?

Kerry Pressures Coast Guard to Bid New Deepwater Contract

Senator John Kerry (D-Mass.) introduced legislation that will prevent the Coast Guard from re-signing the current Deepwater program contract with Lockheed Martin and Northrop Grumman. Kerry's bill requires the Coast Guard re-open the contract and hold a competitive bidding process for the remaining aspects of the program. Last month, Kerry called for the Coast Guard to drop the current contract when it comes up in June. Kerry acknowledged the Coast Guard decision yesterday to cancel a part of the Lockheed/Grumman contact and take overoperations for the "fast-response cutter," a high-speed security vessel. "Taking over this aspect of the program is a good first step," Kerry said.

Aker Kvaerner Deepwater Contract for Gulf of Mexico

Chevron, with partner Kerr-McGee, has awarded Aker Kvaerner, Inc. the semisubmersible hull and mooring system contract for their Blind Faith project in the Gulf of Mexico. The contract has a total value of approximately USD 120 million. Aker Kvaerner's scope of work includes engineering, procurement, construction and transportation. The award is a recognition of the deepwater competence in Aker Kvaerner. The Blind Faith platform to be located in the Mississippi Canyon 650 block, approximately 162 miles southeast of New Orleans is part of the ultra-deepwater Gulf of Mexico in 6,500 feet water depth. This contract award follows more than one year of concept studies…

Champion Technologies Wins First West Africa Deepwater Contract

Specialist oilfield production chemicals company Champion Technologies has secured its first deepwater chemical management services contract in West Africa in an eight-figure deal over five years. The work involves a full suite of chemicals and associated support services for Noble Energy’s Aseng Field Development project in Equatorial Guinea, West Africa . The company plans to build a base in Luba’s Freeport Zone which will include office space, a fit-for-purpose laboratory, warehouse, and a blending facility. “This is a significant contact award for Champion Technologies.

Coast Guard Reassigns Deepwater Patrol Boat Project

FRC Photo Credit: USCGThe U.S. Coast Guard has terminated the Deepwater Fast Response Cutter-B acquisition currently with Integrated Coast Guard Systems and reassigned the project to the Coast Guard’s Acquisition Directorate. The project is for twelve patrol boats scheduled for delivery beginning Spring 2010. ICGS, a joint venture between Lockheed Martin and Northrop Grumman, was notified of the decision earlier today. “This decision is based on the Coast Guard’s ongoing commitment to improve management of the Integrated Deepwater System contract, to achieve best value for taxpayers and the government, and give Coast Guard men and women the capable assets they need to save lives, secure our maritime borders, and protect the environment,” said Adm.

Coast Guard Awards Contracts for Development of New Cutter

The U.S. Coast Guard has awarded two contracts totaling $129 million to Northrop Grumman Corporations Ships Systems sector for initial development and delivery of the Coast Guard’s first new National Security Cutter, part of the Coast Guard’s Deepwater program, which is aimed at replacing its aging offshore fleet. “The Coast Guard and the American people urgently need the Deepwater Program,” said Homeland Security Secretary Tom Ridge. “The Department of Homeland Security is thrilled with the progress the Coast Guard has made to date with Deepwater. The Deepwater program will improve the Coast Guard’s overall mission performance and maritime homeland security capabilities.

Coast Guard Beefs up Deepwater Project Oversight

U.S. Coast Guard will beef up oversight of a $24 billion modernization project run by a Lockheed Martin Corp. and Northrop Grumman Corp. joint venture, amid mounting delays, soaring costs and design flaws, sources familiar with the move said on Monday. The venture, Integrated Coast Guard Systems (ICGS), will continue work on the program to overhaul Coast Guard ships, helicopters, airplanes and communications, known as Deepwater. But the Coast Guard will take over responsibility as the "lead integrator" or program manager, a move aimed at answering recent lawmaker demands. The Coast Guard also plans to announce the permanent retirement of eight 123-foot patrol boats that were pulled from service late last year due to hull problems, the sources said.

USCG Awards $144M Deepwater Contract

The U.S. Coast Guard awarded a contract totaling $144 million to Integrated Coast Guard Systems for production and deployment of the Coast Guard’s second Maritime Security Cutter Large. The WMSL is the largest of three new cutter classes -- and the first under construction -- within the Coast Guard’s Integrated Deepwater System acquisition program. The Deepwater program will improve the Coast Guard’s counter terrorism, maritime homeland security and overall mission performance capabilities. “The Deepwater program is vital to transforming the Coast Guard and ensuring the delivery of required capabilities needed for the performance of homeland security and other missions,” said Adm. Thomas H. Collins, commandant of the Coast Guard.

USCG Deepwater Contract Accelerates OPC Program

The U.S. Coast Guard and Integrated Coast Guard Systems (ICGS) announced that preliminary design and final requirements work will commence immediately on the new Offshore Patrol Cutter (OPC) program. This effort will lead to a new type of highly capable, cutting-edge, medium-endurance cutter. This accelerates the effort to launch the OPC by a full three years, compared to the Deepwater program's originally proposed schedule. This initial OPC contract assigned to ICGS establishes the critical first-step engineering efforts that will occur over the next 12 months. design and system integration.

Coast Guard Meets with Lockheed, Northrop

U.S. Coast Guard Commandant Adm. Thad Allen met last week with chief executive officers from Lockheed Martin Corp. (LMT) and Northrop Grumman Corp. (NOC) to discuss his agency's $24b modernization program, which has struggled with rising costs and technical difficulties. Lockheed Martin CEO Robert Stevens and Northrop Grumman CEO Ron Sugar met with Allen to talk about the Deepwater program's new management plan, the Coast Guard said. The Deepwater program is a 25-year effort to replace a wide variety of aging ships and aircraft. Costs have ballooned from the original $17b estimate, and critics have said the program's shipbuilding troubles show that the Coast Guard isn't equipped to manage such a big project.

Aker Kvaerner Deepwater contract for GOM

Chevron, with partner Kerr-McGee, has awarded Aker Kvaerner, Inc. the semisubmersible hull and mooring system contract for their Blind Faith project in the Gulf of Mexico. The contract has a total value of approximately $120 million. Aker Kvaerner's scope of work includes engineering, procurement, construction and transportation. The award is a recognition of the deepwater competence in Aker Kvaerner. The Blind Faith platform to be located in the Mississippi Canyon 650 block, approximately 162 miles southeast of New Orleans is part of the ultra-deepwater Gulf of Mexico in 6,500 feet water depth. This contract award follows more than one year of concept studies…

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

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