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Tuesday, January 23, 2018

Deepwater Project News

ASA Takes Up Deepwater Project Cause

In a recent Special Edition of its newsletter, the American Shipbuilding Association said top priority should be given to the USCG Deepwater Project. "The Integrated Deepwater Systems Capabilities Replacement Project is the most important and vital acquisition in the history of the USCG. The Deepwater project is the replacement and modernization of the USCG's current Deepwater assets - some of which rely on 1950s technology - with a 21st century integrated system of ships, aircraft and command, control, communications, computers, intelligence, surveillance and reconnaissance equipment. Out of the USCG's 41 high and medium cutters, approximately 30 - or 70 percent - were built more than 25 years ago and have already completed one fleet modernization.

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.

ASA Takes Up Deepwater Project Cause

In a recent Special Edition of its newsletter, the American Shipbuilding Association said top priority should be given to the USCG Deepwater Project. "The Integrated Deepwater Systems Capabilities Replacement Project is the most important and vital acquisition in the history of the USCG. The Deepwater project is the replacement and modernization of the USCG's current Deepwater assets - some of which rely on 1950s technology - with a 21st century integrated system of ships, aircraft and command, control, communications, computers, intelligence, surveillance and reconnaissance equipment. Out of the USCG's 41 high and medium cutters, approximately 30 - or 70 percent - were built more than 25 years ago and have already completed one fleet modernization.

Floating Production Systems: US$11+ Billion on Order

FPSO 'Mystras': Photo CCL 2

The floating production sector has been especially active over the past several months. Ten production floaters have been ordered since March, reports International Maritime Associates Inc. (IMA). 269 floating production units now in service or available – This figure is 22% greater than five years ago, almost 80% higher than ten years back. FPSOs account for 61% of the existing systems. The balance is comprised of production semis, tension leg platforms, production spars, production barges and floating regasification/storage units.

Tata Steel Secures Deepwater Contract for Gulf of Mexico

Tata Steel will provide 105 miles of line pipe (Photo: Tata Steel).

Tata Steel has been awarded an eight-figure U.S. dollar contract to supply pipe for Enterprise Products Partners L.P.’s new crude oil export pipeline in the Gulf of Mexico’s Keathley Canyon area. The contract will see Tata Steel deliver more than 48,000 metric tons of steel pipe from its 42-inch mill in Hartlepool, England, for the Lucius Development Project, which has the capacity to produce in excess of 80,000 barrels of oil per day. Tata Steel will provide 105 miles (169 kilometres) of 18-inch diameter line pipe.

Chevron Clarifies Deepwater GOM Production

Chevron Corp. clarified the production rate for Genesis, a deepwater project in the Gulf of Mexico, which was reported in the corporation's quarterly earnings release. The 1999 year-end gross oil-equivalent production from Genesis, operated and 57-percent owned by Chevron, was 47,000 bpd. The 63,000 bpd reported for Genesis was the peak production rate for a period during the fourth quarter, not the year-end level. The gross oil-equivalent production from the 40 percent-owned Gemini project at year-end was 35,000 bpd, as reported in the earnings release. A third Gulf of Mexico deepwater project, Typhoon, in which Chevron has a 50-percent stake, is expected to begin producing by mid-2001.

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.

Shell’s Largest GoM Platform Starts Production

Photo: Shell

Shell has begun production from the Mars B development through Olympus, the company’s seventh and largest floating deepwater platform in the Gulf of Mexico. It is the first deepwater project in the Gulf to expand an existing oil and gas field with significant new infrastructure, which should extend the life of the greater Mars basin to 2050 or beyond. Combined future production from Olympus and the original Mars platform is expected to deliver an estimated resource base of 1 billion barrels of oil equivalent (boe).

A Good Idea, But...

The General Accounting Office throws some cold water on the USCG's largest acquisition program ever - the Deepwater Project, a $9.8 billion program designed to significantly upgrade the USCG's marine and air fleets over the next 20 years. The U.S. General Accounting Office (GAO) has issued a report (GAO/RCED-99-6) which raises serious questions regarding the USCG's proposed $9.8 billion, 20-year deepwater asset revamp. Specifically, GAO questions the need for such a large program, considering many ships and aircraft are now able to be used well beyond their originally intended service life because of advances in maintenance. GAO also…

Shale Oil Is it a Threat to Future Deepwater Development?

In general the floating production sector looks healthy and growth remains strong. But the sudden expansion of shale oil and tight oil production could disrupt the growth trajectory in the deepwater sector. The underlying drivers for deepwater development point toward continued sector growth. Spot and futures crude pricing is at levels supporting deepwater development. Oil demand keeps growing and there continues to be need for new future sources of oil. The threat of supply disruption from traditional sources remains, prompting oil companies to look at alternative sources. Activity in the deepwater sector is robust. More than 200 deepwater projects are in the planning stage that will likely require a floating production system for development.

CG Comments on Purchasing Authority

On Nov. 6, 2008, Rear Admiral Gary T. Blore, Assistant Commandant for Acquisition & Chief Acquisition Officer, commented on the status of U.S. “On October 28 we posted a fact sheet (updated on November 4) that explained that DHS had rescinded acquisition [milestone] decision authority from the Coast Guard as recommended by the GAO and required in a recent legislation. I want to further explain this issue, as it may not be clear that this basically codified existing acquisition management practices. We are exercising our major* acquisition processes -- appropriately -- the same way we did before, and after, this law. However, since we had previously adopted the guidance as a ‘best practice…

Kvaerner Secures $11M Deepwater Project from BP

Kvaerner announced that Aker Kvaerner has been awarded a contract, worth $11 million, to supply advanced drilling and mooring equipment for BP. The advanced deepwater equipment has been developed and will be delivered by Maritime Hydraulics and Maritime Pusnes. The equipment is due for completion and delivery in the first quarter of 2003, and is for a semi-submersible platform which BP is having built for installation on the Thunder Horse oil field.

Maersk Considers Exiting Angolan Oil Field

Danish shipping and oil group A.P. Moller-Maersk says its investment in Angola's Chissonga oil field is under consideration as a result of falling oil prices. "We will only continue the project if we feel comfortable that we have limited risk and could expect reasonable returns," Chief Executive Nils Smedegaard Andersen said on a teleconference with journalists. He said it is a fact, that deepwater projects like Chissonga are challenged because of high costs. Reporting by Ole Mikkelsen

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.

Strong Recovery in Vessel Demand

Douglas-Westwood forecasts strong recovery in vessel demand. The World Subsea Vessel Operations Market 2011-2015 details expenditure set to grow 52%, totaling $72bn between 2011 and 2015. Lead author, Simon Robb, commented, “Project timetables are accelerating as confidence returns to the industry, with a shift to larger and more complex deep water projects. Projects are increasingly capital intensive, which is benefitting offshore contractors with the capability and expertise to provide deep water services. “Global vessel demand for Subsea Vessels is expected to climb beyond 310,000 days for the forecast period 2011-2015 – a 28% increase on the previous five years.

OTC 2011 Distinguished Achievement Awards

The Offshore Technology Conference (OTC) will present its 2011 Distinguished Achievement Awards on May 1 to Cortis (Cort) Cooper for his pioneering work in metocean research, and to BP Norway for the Life of Field seismic reservoir surveillance project. ExxonMobil Development Company will receive a special citation for its deepwater project implementation in Angola. The awards will be presented at the Annual OTC Dinner, a new signature event on Sunday evening that will be held at the George R. Brown Convention Center in Houston, Texas. The dinner will kick off the world’s largest conference for offshore development, which will be held 2-5 May at Reliant Park in Houston.

MMHE Eyes Partnership

According to Business Times, Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE), a wholly-owned unit of MISC Bhd, is seeking to collaborate with other shipyards in the country in the construction of deepwater facilities for the oil and gas industry. MMHE managing director and chief executive officer Wan Yusoff Wan Hamat said the company is making contacts with local shipyards. He did not identify the shipyards, but indicated that collaborations will be in deepwater projects in line with the company's target to become the region's centre of excellence for deepwater support services and maritime repairs. Recent discoveries of deep-sea wells have pushed up demand for offshore facilities such as production platforms, semi-submersible rigs and drilling rigs.

Deepwater Downturn: Bump in the Road or Long-term Slowdown?

(Image: iStock)

IMA/World Energy Reports has just completed a comprehensive assessment of the five year outlook for the deepwater sector. The new report – the 19th annual floater market forecast prepared by IMA since 1996 – provides our forecast of orders for floating production systems between 2016 and 2020. Here’s an overview of the findings and conclusions in the report. We see the downturn in market conditions and implosion of Petrobras as a bump in the road. While the outlook is clearly dimmer than last year…

Deepwater Downturn: Bump in the Road or Long-term Slowdown?

(Image: iStock)

IMA/World Energy Reports has just completed a comprehensive assessment of the five year outlook for the deepwater sector. The new report – the 19th annual floater market forecast prepared by IMA since 1996 – provides our forecast of orders for floating production systems between 2016 and 2020. Here’s an overview of the findings and conclusions in the report. We see the downturn in market conditions and implosion of Petrobras as a bump in the road. While the outlook is clearly dimmer than last year…

GAO: USCG Deepwater Acquisition Schedule Update Needed

The General Accounting Office has called for the US Coast Guard to update it Acquisition Schedule in keeping with the many changes that have been made to the $17 billion program that was announced in 2002. each budget submission. linking assets.

Wood Group Wins Subsea Contract Supporting CNOOC

Photo: Wood Group

UK-based energy services company Wood Group has been awarded a new contract by the China National Offshore Oil Corporation (CNOOC) to support the Lingshui 17-2 gas development in the Qiongdongnan basin of the South China Sea. Subsea and flow assurance services will be provided under the contract, which is effective immediately and will be supported by Wood Group’s offices in Perth, Australia and London. An independent review for the development’s subsea production system design and a special study and design for its gas export pipeline will be delivered.

J. Ray Upgrades Barge for Deepwater

Houston-based J. Ray McDermott, a subsidiary of McDermott International, Inc., is upgrading its primary Gulf of Mexico derrick/pipelay barge, DB50, for future deepwater projects, by adding new thrusters and increasing its electrical power supply. The DB50 will have its entire power plant replaced with new diesel-engine generator sets totaling 19.2 megawatts, new switchboards and a state-of-the-art power management/alarm system. Also, the existing four 2.4 megawatt controlled pitch thrusters will be replaced with six new 2.4 megawatt fixed pitch / variable AC drive thrusters, which will provide 44 tons of thrust each. In addition, the freshwater and saltwater cooling system and the supply/exhaust ventilation system will be upgraded in both engine and thruster machinery spaces.

FMC Gets Shell Ultra-deep Subsea Equipment Order

FMC Technologies, Inc. to support Shell's ultra-deepwater project in the Walker Ridge area of the Gulf of Mexico. Stones is located approximately 200 miles (322 kilometers) off the Louisiana coast in approximately 9,600 feet (2,926 meters) of water. FMC Technologies' scope of supply includes eight subsea trees, a subsea manifold, topside and subsea controls and associated equipment. "Deepwater operations in the Gulf of Mexico require advanced capabilities and innovative solutions," said Tore Halvorsen, FMC Technologies' Senior Vice President, Subsea Technologies. FMC Technologies designs, manufactures and services technologically sophisticated systems and products such as subsea production and processing systems…

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