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Tuesday, January 23, 2018

Deepwater Oil News

Investors Ask Oil Companies for Risk Reduction Strategies

According to an August 6 report from Environment News Service, suffering deep financial losses from the Deepwater Horizon oil spill in the Gulf of Mexico, and in response to a proliferation of deepwater offshore drilling for oil worldwide, investors have sent a joint letter to 27 major oil companies seeking transparency on risk reduction strategies for their offshore oil operations. Fifty-eight investors in the United States and Europe, representing trillions of dollars in assets, sent the request for more information to chief executive officers at the oil companies, including the world's three largest deepwater oil producers - ExxonMobil, Royal Dutch Shell and Brazil's state-owned oil company Petrobras. (Source: Environment News Service)

$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.

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.

ONGC-Petrobras Make a Deal

According to www.business-standard.com, Oil and Natural Gas Corporation (ONGC) has signed a deal with Brazil’s Petrobras for exchange of stakes in oil blocks in each other’s countries. ONGC will reportedly offer Petroleo Brasileiro SA (Petrobras) stake in its deepwater oil and gas block in the Krishna-Godavari basin, in which it discovered gas reserves estimated at 5-15 trillion cubic feet. In return, Petrobras – according to the report – will offer ONGC Videsh Ltd (OVL) stake in oil blocks in Brazil.

Deep Down Constructs Carousel System

Deep Down, Inc. (OTC Bulletin Board: DPDW), an oilfield services company specializing in complex deepwater and ultra-deepwater oil production distribution system support services, announced that it has completed the design and has begun construction of a 3,200 metric ton Carousel System, which is scheduled for completion early in the third quarter of 2010. Upon completion the Carousel System will be located in the Gulf Coast, to facilitate the handling of umbilicals from transportation vessels onto the Carousel, and with the ability to store up to three separate steel tube umbilicals for projects in the region.  

EU Decides Against Deepwater Ban

According to a report from The Wall Street Journal, the European Union backed away from imposing a moratorium on deepwater oil drilling in European waters Wednesday, Oct. 13, instead recommending new legislation to enforce tough new EU-wide safety standards for the offshore oil and gas industry. (Source: The Wall Street Journal)

Mexico Sets Its First Deepwater Gulf Oil Auction

Contract awards for Mexico's first-ever deepwater oil auction covering 10 potentially lucrative blocks are expected to take place on December 5, oil regulator CNH said on Friday, a tender that will test investor interest given a worldwide price slump.   The 10 blocks are located in the country's territorial waters in the Gulf of Mexico.   A formal vote to approve the date is expected to pass by a unanimous vote of CNH commissioners.   (Reporting by David Alire Garcia)

Petrobras Awards Lankhorst Ropes Dyneema Deepwater Mooring Line Contract

Leading deepwater rope manufacturer, Lankhorst Ropes, has secured the first-ever, worldwide order for Dyneema synthetic mooring rope for deepwater MODU (Mobile Operating Drilling Unit) projects from Brazilian oil and gas producer Petroleo Brasileiro SA (Petrobras). Gama 98 is a rope construction developed by Lankhorst Ropes specifically for deepwater mooring, and used on a number of major deepwater projects in the Gulf of Mexico. The rope will feature up to 12 Dyneema SK78 yarn sub-ropes. Developed by DSM, Dyneema SK78 is a high modulus polyethylene fibre.

Deep Down to Acquire Cuming Corp.

Deep Down, Inc. (OTC Bulletin Board: DPDW), an oilfield services company specializing in products and services for the deepwater and ultra-deepwater oil and gas industry, announced entry into a conditional purchase agreement to acquire Cuming Corporation. Privately-held Cuming Corporation was founded in 1980 and is a manufacturer of buoyancy and insulation products with a range of deepwater oil & gas industry applications. Cuming's operations are complementary with those of Deep Down's Flotation Technologies subsidiary, which produces syntactic foam products for customers in the oil and gas, defense, scientific and industrial sectors.

Louisiana Port Wary of Next Hurricane

The only road in and out of Port Fourchon, Louisiana, the main U.S. staging point for deepwater oil and natural-gas production, sits just 2 to 3 feet (61 to 91 centimeters) above the marshland. Hurricanes Katrina and Rita largely spared the road, Louisiana Highway 1, because neither struck Fourchon directly. According to Bloomberg, officials are worried that the upcoming hurricane season, beginning June 1, might play out differently. A storm might wipe out the highway as Katrina wrecked parts of the Gulf Coast last year, hindering access to Gulf of Mexico production platforms and cutting off a port where 11 percent of U.S. oil imports come ashore. Raising and widening a 17-mile (27-kilometer) stretch of Highway 1 would prevent an extended shutdown.

Private Equity Firms Double down on Venari's Offshore Drilling

Gulf of Mexico deepwater oil explorer Venari Resources LLC said on Wednesday it had raised $1.3 billion from original backers Warburg Pincus LLC, Kelso & Co, the Jordan Company and Temasek Holdings, as well as new investors. GIC, Singapore's sovereign wealth fund, and BlackRock Inc's private equity arm participated in the new round of equity commitments, joining private equity firms Warburg Pincus, Kelso and Jordan, as well as Singapore state-owned investment firm Temasek. The four original investors formed Venari in 2012 with $1.1 billion in equity commitments. The new funds will be used to help develop assets Venari has discovered since 2012, as well as bolster the company's exploration program, Venari Chief Executive Brian Reinsborough said in an interview.

Rolls Royce to Design, Power, Hi-tech Subsea Vessel

The versatile UT 737 CD vessel will support the most demanding subsea projects, including constructing and servicing oil and gas wells on the sea bed, up to 3,000 metres below sea level. In order to support such challenging missions the vessel will include special features, including two independent systems for launching and recovering Remotely Operated Vehicles (ROV), a 125 tonne offshore crane that compensates for wave movements and an advanced offshore tower which handles subsea equipment through a large opening in the hull of the vessel, called a moon pool. Anders Almestad, Rolls-Royce, President - Offshore said: “This high tech vessel will showcase a combination of innovative technology and world-class, energy efficient design.

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.

Wärtsilä Selected Best Supplier by CNOOC

Wärtsilä received an award for supplier excellence from CNOOC, the China National Offshore Oil Corporation. After internal evaluation by project management teams, 28 Chinese and international vendors participating in nine of CNOOC's major projects were honored. Wärtsilä is involved in four of these projects. This was the first time that CNOOC had arranged such an event to recognize its best suppliers, and the awards were presented at a ceremony held in Beijing. The project for which Wärtsilä received the award involves the construction and commissioning of the deepwater pipe-laying and crane vessel named Hai Yang Shi You 201 (HYSY 201). The vessel will be used in the construction and installation of infrastructure needed to develop offshore deepwater oil & gas fields worldwide.

Petrobras CEO Defends Company's Honor

The top executive of Brazilian state oil giant Petrobras on Tuesday defended his company's acceptance of an industry achievement award despite suffering the loss of the world's largest deepwater oil rig in March. Petrobras president and CEO Philippe Reichstul dedicated the 2001 Offshore Technology Conference Distinguished Award for Companies and Organizations to the 11 workers who died when two explosions rocked the P-36 rig on March 15. Reichstul said Petrobras accepted the award because it recognizes the company's advances in subsea production systems, not the drilling platform proper. The subsea systems were not damaged in the sinking, he said. "We've been amazed by the way everything is impeccable subsea," Reichstul said at the 2001 Offshore Technology Conference (OTC) yesterday.

McDermott Wins Subsea Contract in Malaysia

McDermott International, Inc. (NYSE: MDR) (“McDermott”) announced theaward of a subsea contract to its Malaysian subsidiary for deepwater offshore engineering and construction, including transportation and installation of subsea infrastructure. The award is for the Kikeh Subsea Expansion Project by Murphy Sabah Oil Co., Ltd. for the engineering, procurement, construction, installation andcommissioning of pipelines and an umbilical and subsea hardware package.Engineering work on the Kikeh Subsea Expansion Project has started and is expected to be completed in the third quarter of 2012. The Kikeh area is located 120 kilometers northwest of Labuan, Malaysia, in 1,350 meters of water and is Malaysia’s first deepwater oil discovery.

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.

OMSA on Drilling Moratorium Poll

The results of the national poll of Americans who were asked about their view on the Obama Administration’s moratorium on deep-water drilling are very telling, with nearly three-fourths, or 73 percent, saying “a ban is unnecessary, calling the worst oil spill in U.S. history a 'freak accident,'” according to Bloomberg. The moratorium to halt drilling will cut the legs out from under a Gulf Coast economy that is already reeling from the initial spill. It will cause a ripple effect from the offshore workboat operators who supply oil rig equipment all the way down to the grocery stores who supply food for the mariners. The moratorium is short-sighted and will cripple an already hard-hit maritime industry operating in the Gulf Coast region.

McDermott Breaks Ground on Deepwater Platform Yard

Rigzone has reported that J Ray McDermott has begun construction on the $20m first phase of a $220m construction yard in Mexico's Tamaulipas state to build deepwater oil platforms. McDermott is building the yard on land at Altamira port. Mexico's government awarded the company the yard space in a 30-year concession. The company plans to bid on platform contracts Mexico's state oil company Pemex will launch. Further, McDermott will seek to supply projects that oil firms such as BP , Shell and Petrobras are developing in the Gulf of Mexico, Pineda said. The yard also could supply rigs to projects in Africa. An additional $60m investment is planned for the yard project in 2007-08, he added. Source: Rigzone

Relocation of Oil Spill Response Vessel

The Marine Spill Response Corp. (MSRC), the country's largest oil spill response organization, will relocate one of its 210 ft. oil spill response vessels (OSRV) to Pascagoula, Miss. MSRC has 16 OSRVs positioned along the coastline of the continental U.S., Hawaii and the U.S. Virgin Islands. The relocated vessel will be strategically placed in the eastern Gulf of Mexico, and wil provide enhanced coverage in an area where increasing industry activity is occuring, particularly with respect to deepwater oil exploration and production. The OSRV will be relocated from Corpus Christi, Texas. MSRC will maintain a skimming barge and significant amounts of other response equipment in Corpus Christi…

Keppel FELS: Bright Future for Offshore Drilling Rigs

The Washington Times has reported that the boom in Singapore's offshore oil and gas rig industry is expected to last another decade. Keppel FELS, says energy companies are expected to increase spending on oil exploration and production, especially in deeper waters, Channel News Asia reported Monday. Keppel FELS says some of these companies are signing drilling contracts for up to five years starting in 2009, a sign that the current boom cycle for the offshore rig industry is not slowing down anytime soon. Meanwhile, Britain's Douglas-Westwood research firm says deepwater oil production now makes up only one-tenth of total offshore oil production output. But that is expected to grow sharply. Source: Washington Times

Chevron, Exxon and Petrofina Celebrate Genesis' First Oil

Flow of first oil was announced by partners in the Genesis Project, a deepwater oil and natural gas drilling and production facility in 2,600 ft. of water in the Gulf of Mexico, located 150 miles south of New Orleans. Genesis is expected to produce approximately 30,000 barrels of oil and more than 20 million standard cu.-ft. of natural gas per day during 1999. Production is planned to increase at a steady pace so by the year 2000 Genesis will reach its peak production capacity of 55,000 barrels of oil and 72 million cu.-ft. of natural gas per day. Genesis utilizes a unique floating spar platform - the first ever to accommodate both drilling and production facilities.

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.

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