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Tuesday, January 23, 2018

Gom Deepwater News

Danos & Curole Awarded BP Contract

Danos & Curole has been awarded a multi-year contract to provide all contract operations and maintenance personnel to BP’s Gulf of Mexico deepwater fields.  With this contract, Danos & Curole will provide skilled personnel of various disciplines to BP’s eight state of the art GOM deepwater assets and the inland facility located in Houma, La. (www.danos.com)

Total, Chevron Team up in Gulf of Mexico Oil Exploration

Photo: Total

Total announced that its subsidiary, TOTAL E&P USA, INC., has entered into an agreement to capture seven prospects operated by CHEVRON U.S.A. INC. in the deepwater Gulf of Mexico. The agreement covers 16 blocks. The associated prospects are located in two promising plays and areas of the GoM: Wilcox in Central GoM next to the Anchor discovery, and Norphlet in Eastern GoM nearby to the Appomattox discovery. Total’s participation in these wells will be between 25 percentand 40 percent.The first of these wells was spudded late July on the Ballymore prospect in Mississippi Canyon.

ABS Supports Shell's Olympus TLP Acting as CVA

ABS has been named the design certified verification agent (CVA) for the Shell Olympus TLP, intended for installation on the Mars B field in the Gulf of Mexico's (GOM's) deepwater. The tension leg platform (TLP) will be built at Samsung Heavy Industries, Co. Ltd. in Korea. ABS was also selected as the fabrication CVA for the hull and topsides and the installation CVA for the hull, topsides, piles and tendons. Renamed Olympus (originally Mars B), it will be Shell's biggest and the first platform of its type installed in the GOM since Shell completed a wave of five similar TLP installations during the 1990s. It will also be the first four-column TLP to be built under new storm criteria implemented after hurricanes Rita and Katrina in 2005.

Oceaneering Announces Vessel Charter

Oceaneering International, Inc. (NYSE:OII) has announced that it has entered into a five-year charter for use of the Cade Candies, a multi-service subsea support vessel owned by Otto Candies LLC. The charter is expected to commence during the second quarter of 2013. This state-of-the-art, U.S. flagged vessel was built in 2010. It has an overall length of approximately 309 feet (94 meters), a Class 2 dynamic positioning system, accommodations for 69 personnel, a helideck, a 150-ton active heave compensated crane, and a working moonpool. Oceaneering's current rolling, short-term charter contract on the Cade Candies, in place since November 2011, will continue through early 2013. At that time, the vessel will enter a shipyard to undergo modifications to enhance its project capabilities.

SSS: Separate Storage Shuttling

The advent of FPSO and Shuttle Tankers serving the deepwater fields of the Gulf of Mexico is drawing closer, as oil companies study the most economical means to move product from point A to B, particularly from remote and deepwater portions of the Gulf of Mexico. The GOM region, which has one of the more complex subsea piping systems in the world, is ripe for the shuttle tanker solution as the search for oil and gas pushes further from the shore. The question then does not center on "if," but rather "when." American Shuttle Tankers (AST) is touting its S-S-S, or Separate Storage Shuttling solution. The system is unique in that it works with any floating production system — a key point given the fact that there are zero FPSO projects currently underway — including semisubmersibles…

Ultra-Deepwater Program Funding for Remora

The Statement of Work (SOW) covers a 1 year study involving US operators and execution of Industry related work shops addressing various HiLoad DP offloading scenarios in the US Gulf of Mexico (GoM). "Remora is pleased to learn that RPSEA and the US Department of Energy (DOE) have acknowledged the HiLoad DP solution and that our technology has been successfully selected under the Ultra-Deepwater Program. It is considered quite remarkable that a Norwegian Company has succeeded in obtaining US government funding and gained acceptance for the HiLoad DP as a viable contender for offloading operations among deepwater operators in US GoM", says Kim Diederichsen, Senior Vice President Americas, Remora.

MMS Study of Loop Current in Eastern GOM

A study released by the Minerals Management Service examines the circulation in the Eastern Gulf of Mexico (GOM) and sheds new light on the behavior of the Loop Current (LC) and Loop Current Eddies (LCEs), the relation between the upper- and lower-layer currents, and the variability of water mass characteristics in deepwater. When the LC and the LCE are present in the Gulf near oil and gas activities, operators may have to curtail or amend their operations due to the strength of the current or eddy. “The observations from this study will help MMS and other scientists better understand the Loop Current and improve our forecasting of its behavior in the Gulf of Mexico,” said Dr. Alexis Lugo-Fernandez, the MMS physical oceanographer responsible for the study.

Gulf of Mexico Oil Production on the Rise

Photo: Nabors

Because of the long timelines associated with Gulf of Mexico (GOM) projects, the recent downturn in oil prices is expected to have minimal direct impact on GOM crude oil production through 2016. EIA projects GOM production to reach 1.52 million barrels per day (bbl/d) in 2015 and 1.61 million bbl/d in 2016, or about 16% and 17% of total U.S. crude oil production in those two years, respectively. The forecasted production growth is driven both by new projects and the redevelopment and expansion of older producing fields.

Demand for Offshore Vessels:

 Activity in the Port of Lafourche, LA.

Growing In Deepwater Gulf of Mexico. As the feds issue more drilling permits for the Gulf, demand for offshore support vessels in the GOM deepwater sector has accelerated, industry members say. Anger about the government's spill-related, drilling moratorium--which ended a year and a half ago--has given way to optimism recently. The region's shallow-water sector, nevertheless remains slow and gives little cause for cheer. Paul Candies, president and chief executive of Otto Candies…

Positive Outlook for Global Subsea Development, Deepwater Strengthening

There are 2,511 identified pending, probable and possible subsea production wells forecast (base case) worldwide over the next six years. Some 18 percent of these subsea completions will be installed in North America, 30 percent in Africa/Mediterranean, eight percent in Asia-Pacific, 26 percent in the North Sea and 18 percent in Brazil. These subsea projects are in various development stages, including: 23 percent at the pending/construction stage, 11 percent bidding, 9 percent in detailed engineering, 16 percent at the front-end engineering design (FEED) stage, 16 percent of the wells probable and 26 percent possible indicating possible development in the future.

New Subsea Support Vessel Ordered by Oceaneering

An Oceaneering DSV: Photo courtesy of Oceaneering

Oceaneering International, Inc. has commissioned the construction of a subsea support vessel from BAE Systems, expected to be delivered by the end of the first quarter of 2016. The new ship will be U.S. flagged and documented with a coastwise endorsement by the U.S. Coast Guard. It will have an overall length of 353 feet, a Class 2 dynamic positioning system, accommodations for 110 personnel, a helideck, a 250-ton active heave compensated crane, and a working moonpool. Two 13,000 foot-rated Oceaneering work class remotely operated vehicles will also be provided.

Oceaneering Announces Newbuild Subsea Support Vessel

Oceaneering International, Inc. announced it has commissioned the construction of a subsea support vessel from BAE Systems. The vessel is expected for delivery by the end of the first quarter of 2016. This vessel will be U.S. flagged and documented with a coastwise endorsement by the U.S. Coast Guard. It will have an overall length of 353 feet, a Class 2 dynamic positioning system, accommodations for 110 personnel, a helideck, a 250-ton active heave compensated crane, and a working moonpool.

DSS Secures HOS Jones Act MPSV for Gulf ROV Work

HOS Bayou

Delta SubSea Secures U.S.-Flagged DP-2 IMR/Construction Support Vessel for Deepwater ROV Operations in the GoM. Delta SubSea, LLC (DSS) has entered into an agreement with a subsidiary of Hornbeck Offshore Services, Inc. (HOS) for the HOS Bayou, one of Hornbeck’s recently constructed 300 class HOSMAX DP-2 multipurpose service vessels (MPSVs). The HOS Bayou is the newest U.S.-flagged Jones Act-compliant MPSV on the market today. Equipped with two Delta SubSea Schilling HD 150 HP work-class remotely operated vehicles (ROVs) from DSS’s fleet of ROVs…

Fitch Affirms SEACOR Holdings' IDR at 'BBB-'; Outlook Stable

--Senior unsecured notes at 'BBB-'. The Rating Outlook is Stable. Approximately $700 million in total debt is outstanding at SEACOR. SEACOR's ratings are supported by the company's historically stable credit profile, diversity of operations, and the size, diversity and quality of the company's fleet of offshore vessels. The company's conservative credit profile is further supported by management's willingness to maintain large cash and securities balances throughout industry cycles, which have resulted in the company typically maintaining very low (and often negative) leverage levels as measured on a net debt basis. In addition, management retains significant flexibility to reduce capital expenditure levels during industry downturns.

BOEMRE Approves 15th Deepwater Well

For those of you keeping track, today the Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE) approved a drilling permit for the fifteenth deepwater well to comply with rigorous new safety standards implemented in the wake of the Deepwater Horizon explosion and resulting oil spill. This includes satisfying the requirement to demonstrate the capacity to contain a subsea blowout. The approved permit is for BHP Billiton Petroleum (GOM) Inc. to drill a new development well in Green Canyon Block 653 in 4…

Central Gulf of Mexico Sale Nets $159.1 Million

The U.S. Department of the Interior's Minerals Management Service (MMS) announced the completion of the two-phase bid evaluation process for Lease Sale 172. This sale, held March 17, 1999, received 272 bids on 207 tracts offshore Louisiana, Mississippi, and Alabama. Of the 207 high bids received, MMS rejected 16 high bids totaling $12.7 million as insufficient for fair market value. Two of the tracts are located on the shelf and 14 tracts are located in deepwater. As a result, MMS awarded $159.1 million in high bids. Sonat Exploration GOM Inc. Spinnaker Exploration Company, L.L.C. BHP Petroleum (Deepwater) Inc. Elf Exploration, Inc.

StatoilHydro Discovery in GOM Deepwater

StatoilHydro has together with operator Anadarko and partners made a discovery in the Vito prospect in deepwater Gulf of Mexico. The Vito well is located in Mississippi Canyon block 984, about 70 kilometres southwest of the Thunder Hawk field. The well was drilled to a total depth of 9,757 metres and is believed to have encountered some 80 metres of net pay, although final test results are still pending. "Vito is our second discovery in the Gulf so far this year. Both Heidelberg and Vito are located in the Miocene play, in areas known for good quality sand development," explains Helen Butcher, head of StatoilHydro's exploration in the Gulf of Mexico.

Gulf of Mexico Deepwater Oil and Gas Production Rises Dramatically

The Minerals Management Service (MMS) announced production of offshore oil and gas in the deepwater (greater than 1,000 ft deep) portion of the Gulf of Mexico (GOM) reached an all-time high in 1998 and continues to escalate rapidly. Production of oil from the deep water has risen 279 percent in the last five years, and deep water gas production rose 252 percent. According to MMS Director Walt Rosenbusch, "The 1998 increase is significant and of national importance. From 1997 to 1998, oil production from the deep water in the GOM rose 47 percent. The production increase in 1998 was sustained by oil and gas company projects that began production in 1997 and 1998. In 1999, eleven additional projects in the deep water of the GOM have begun or are scheduled to begin.

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.

IMA Report: Floating Production Sector Looks “Very Promising”

The number of floating production systems continues to grow – 250 floating production units are now in service or available worldwide. Five years ago there were 177 units, ten years ago 119 units. In the current inventory are 155 floating production storage offloading vessels (FPSO), 42 production semis, 22 tension leg platforms, 18 production spars, 8 production barges and five floating storage regasification vessels (FSRU). Current order backlog consists of 49 production floaters.

Hornbeck Offshore Announces Expansion Of MPSV Program

Hornbeck Offshore Services, Inc. has expanded its multi-purpose supply vessel (MPSV) program to include one 430-ft. new generation DP-3 MPSV to be constructed at a European shipyard with an anticipated third quarter 2009 delivery. This 8,000 deadweight ton vessel will be equipped with two cranes, a helideck, a moon pool and accommodations for 100 people. The primary crane will have lifting capacity of up to 400 tons in up to 10,000 feet of water depth and the secondary crane will provide significant additional lifting capacity. This world-class MPSV will be capable of operating globally. However, the Company plans to deploy the vessel in its primary operating market, the deepwater and ultra-deepwater Gulf of Mexico ("GoM").

Jones Act OSV New-build Program Expanded by Hornbeck Offshore

A Hornbeck OSV: Photo courtesy of Hornbeck Offshore

Hornbeck Offshore expands OSV new-build program, anounces retrofits & other related developments. The Company has exercised the first four of its 48 options to build additional HOSMAX vessels at an aggregate incremental cost of approximately $180 million, excluding construction period interest, for vessel deliveries in the fourth quarter of 2014 and first quarter of 2015. These four new vessels will expand the Company's fifth OSV newbuild program, which was announced in November 2011…

Oceaneering Charter 'Normand Flower' for Three Years

Normand Flower: Photo courtesy of Solstad Offshore

Oceaneering International, has chartered the 'Normand Flower', a Solstad Offshore multi-service subsea support vessel. The charter term is expected to commence during the fourth quarter of 2013 upon arrival of the vessel for work in the Gulf of Mexico (GOM). Prior to commencement of the charter, the Normand Flower will undergo modifications to enhance its project capabilities, including reconfiguration to accommodate two Oceaneering, high-specification, work class ROVs. The vessel…

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

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