Newpark News

This week Esgian’s Week 50 Rig Analytics Market Roundup notes developments in the semisub sector including that Shell has decided to exercise its option on Stena Don in the North Sea but not on Deepsea Bollsta in Namibia. Meanwhile, a new contract for the Transocean Barents will see it operate in the Black Sea, and jackup Shelf Drilling Perseverance will move to Vietnam.ContractsShelf Drilling has secured a contract award for the 400ft Shelf Drilling Perseverance jackup rig with PetroVietnam Domestic Exploration Production Operating Company Limited (PVEP POC).

Market volatility for the petroleum sector provides a backdrop to an evolving Merger & Acquisitions environment for the Offshore Sector. In the 3Q edition of Maritime Professional, this series of articles examined the overall evolution of maritime and offshore M&A activity since 2010, tracing the flow of deals in the post-financial crisis era. In this edition, we take a closer look at relevant U.S. offshore energy industry deal flow and market movements as they relate to oil prices over time, and highlight some recent middle market transactions.

Newpark Drilling Fluids held a grand opening ceremony for its Newpark Technology Center in Katy, Texas. The celebration commenced with skydivers parachuting in while displaying American, Texas and Newpark flag replicas, followed by a flag raising ceremony conducted by the United States Army Color Guard and a ribbon cutting with Newpark executives as well. Festivities then continued indoors with tours of the center and its expansive laboratory facilities. According to Newpark, one of the most unique features of the facility is the lobby’s two-story living water wall…

Newpark Drilling Fluids, a wholly-owned subsidiary of Newpark Resources, has opened its new world headquarters and laboratory facility in Katy, Texas. Newpark Drilling Fluids President Bruce Smith joined his executive staff in welcoming employees to their new home. The facility is located on 11 acres along Houston’s I-10 energy corridor just off Mason Road. Newpark’s acclaimed research and development laboratory including field services lab occupies 37,000 square feet of the building’s 106,000 square feet total. The lab features Newpark's state-of-the-art downhole drilling simulator and a full range of world-class analytical capabilities.

OMNI Energy Service Corp. announced that Ronald D. Mogel has been named Senior Vice President and Chief Financial Officer of the Company and is expected to begin in the middle of January, 2008. Mogel joins OMNI from Horizon Offshore Inc., a Nasdaq listed company that was acquired by Cal Dive International, Inc. in December 2007 for $628 million. Mr. Mogel most recently served as Executive Vice President and Chief Financial Officer of Horizon. He also acted as the company's Director and Vice President of International Accounting and Tax from 1999 to 2005. Previously, Mr. Mogel served as the Vice President of Finance at Newpark Shipbuilding- Pelican Island, Inc., and from 1995 to 1998 he occupied the role of CFO at John E. Chance & Associates.

E.I. duPont de Nemours & Co., Inc. has received EIDC 13, the second of three identical barges being built for the company by FirstWave/Newpark Shipbuilding. The inland service, double-skin tank barge measures 230 x 42 x 12 ft., and has a capacity of 2,200 short tons of product. The barge is certified by the USCG and will be used to transport sulfuric acid, oleum or spent sulfuric acid. It has two cargo tanks wth an electric-driven Lewis four-in. acid pump, stainless steel piping and provisions for inclusion of a vapor control system at a later date. The vessel was designed by Shearer & Assoc., Inc. FirstWave/Newpark Shipbuilding is also constructing a 250 x 42 x 14 ft. inland service double-skin tank barge for E.I. duPont capable of carrying either virgin or spent sulfuric acid.

FirstWave/Newpark Adds To Senior Management Staff Joining FirstWave/Newpark is Frank R. Pierce as corporate vice president and CFO, along with Tom Godfrey in the newly created position of vice president, ship repair. Pierce joins FirstWave with more than 20 years experience, most recently at GulfMark Offshore, a publicly held offshore vessel company. Godfrey, who has held many senior level positions in the industry, comes to FirstWave from Colonna's Shipyard where he was president & CEO.

Global Marine Drilling Company has awarded a contract to Newpark Shipbuilding for the fabrication and outfitting of two electrical equipment houses for the drillship Glomar Jack Ryan. The buildings, which are being assembled at Newpark's West Pelican Island Facility, will then be barged to Houston for transport to Ireland where the vessel is currently undergoing construction.

Providing ship repair, conversion, new construction and related services for barges and other vessels, FirstWave/Newpark Shipbuilding has garnered three new contracts. Pleiades Shipping Agents awarded the company for collision damage repair of 55,000-dwt vessel, MT Nestos. The ship, which sustained damage on its port side near the bow and just above the waterline, underwent repairs at the company's East Pelican Island facility. FirstWave has also been granted a contract by East Boston-based Sterling Equipment for the construction of two 140 x 40 ft. offshore deck barges scheduled for delivery in 1999. In addition, the company will also repair the mat on the Phoenix VI rig for Rio Grande Supply Company. The jack-up rig was loaded on heavy lift barge Boa 16, to make the repairs.

FirstWave/Newpark Shipbuilding was granted two contracts from Marine Drilling Company. The Marine Rig 202 arrived from Singapore on June 26 for skirt repairs and replacement to the rig mat. The Marine Rig 201 - also from Singapore arrived at Newpark's East Pelican Island Facility June 28 for minor repairs and loadout.

Bollinger Shipyards, Inc., Lockport, La., has signed a contract to build two, 250-ft., double hull, jumbo coastwise service, single rake hopper barges for Tide Leasing, LLC, Birmingham, Ala. Construction has begun on the first barge and building of the second vessel will begin in August. Both are scheduled for delivery in November 2000. Overall, each barge will be 250 ft. in length, with a 52.5-ft. beam and 14-ft. depth and 11.5 ft. maximum draft. They will be built with .75-in. steel at the hopper bottoms and .625-in. steel at the hopper sides plus .5-in. T-1 liner plates on the bottom and upper sides of the hopper. Each will be able to carry up to 3,000 metric tons of coal and will operate out of Santa Marta, Colombia. Shearer and Associates, Inc., Metairie, La.

FirstWave/Newpark Shipbuilding has been awarded a contract from Global Marine Drilling Company of Houston, Texas for final commissioning of drilling equipment and other miscellaneous completion work on the newbuild drillship Glomar Jack Ryan. The vessel left builder Harland & Wolff Shipyard in Belfast, Northern Ireland, on August 20 and is scheduled to arrive at FirstWave's East Pelican Island Facility in Galveston early September.

First Wave/Newpark Shipbuilding has won a contract from Sasaran Perdana Sdn Bhd, a wholly owned subsidiary of Crest Petroleum Bhd, for the drydocking, repair and refurbishment of the semi-submersible tender assisted platform drilling rig to be renamed the Teknik Hidayat. The refurbishment will be performed at First Wave's Pelican Island Facility in Galveston, Texas and is expected to continue into the fourth quarter 2002. The rig is expected to arrive in Galveston in mid-June 2002.

First Wave/Newpark Shipbuilding has entered into agreements with Pride International for refurbishments of four offshore rigs including the addition of a twenty-eight man quarters module to one of the rigs. Refurbishments to the Pride South Carolina, Pride Mississippi, Pride Oklahoma and Pride Wisconsin will be performed at First Wave's Pelican Island Facility in Galveston, Texas; all rigs are expected to depart the shipyard by mid-August.

Conrad Industries, Inc. the appointment of Terry T. Frickey as Vice President and Chief Operating Officer, effective immediately. Company’s four shipyards. Conrad’s President and Chief Executive Officer. and Chief Executive Officer. Bollinger Houston shipyard and Manager of Repair Operations for the LEEVAC Industries Repair Group. From 1991 to 1994 he was President of Service Marine Industries, Inc. Louisiana. Cecil A. Financial Officer will become Executive Vice-President and Chief Financial Officer. Additionally, Richard D. Allen has joined the Company as Assistant Operations Manager. to have Richard join our team,” said Mr. various capacities starting at welder/fitter, foreman, superintendent, Yard Manager, General Manager, V.P. of Operations and President.

The Venice Port Complex. The offshore oil and gas industry is no stranger to the southernmost point of Louisiana. For more than a half-century, offshore personnel drove to the community of Venice to board offshore supply vessels or helicopters to make the trip to their jobs atop drilling rigs in the Gulf of Mexico. Now, officials hope to redefine the area’s role in the offshore industry and capitalize on a planned boon in oil and gas drilling and production in the eastern Gulf. The effort consists of a re-branding of the facility and a healthy influx of investment capital for improved infrastructure. Welcome to the Venice Port Complex, much better sounding then the Louisiana Fruit Company site, its previous name relating to the facility’s development and proprietary company.

There are no doubt scores of 15 to 20-year-old 180-ft. supply boats that still have years of useful life… if renovated by skillful and creative marine engineers. That is what ENSCO Marine Company, Broussard, La. has done with a six-pack of vintage supply boats whose day rates and utilization had slipped due to age and limited carrying capacity for their size. ENSCO Marine is a division of ENSCO International, a Dallas, Texas-based drilling contractor who owns and operates 56 drilling rigs in the Gulf of Mexico, the North Sea, Asia Pacific and South America. ENSCO Marine operates 23 offshore supply boats and five anchor handling tugs.

First Wave/Newpark Shipbuilding announced today that it has terminated its contract with Crest Hidayat Limited, a Malaysian company, due solely to the failure of Crest Hidayat Limited to meet its payment obligations under the contract and the failure of its parent corporation, Crest Petroleum Bhd, to fulfill its obligations as guarantor under the contract. Crest Petroleum has publicly reported the difficulty to be the result of the suspension of its credit sources. Crest has further advised the company that it is seeking to establish new funding for the project. The contract, announced by the company in June 2002, involved the repair and conversion of a semi-submersible drilling rig Teknik Hidayat, formerly known as Pan Producer, to a self-erecting tender-assist rig.

R&B Falcon Confirms U.S. Reading & Bates Development Co. (DEVCO), a wholly owned subsidiary of R&B Falcon Corporation, announced its Boomvang Project in deepwater offshore Texas is proceeding rapidly. DEVCO concurs with previously announced reserve estimates of 70-100 million boe in several oil reservoirs extending across portions of East Breaks Blocks 642, 643, 688 and 732. Platform, production facilities and pipeline contracts are being evaluated, and development drilling is scheduled to begin in the second quarter of this year. The partners anticipate first production in the first quarter of 2002. DEVCO owns a 50 percent working interest in the Boomvang Project. Kerr-McGee Oil & Gas Corp., a wholly owned subsidiary of Kerr-McGee Corp. is operator and owns a 30 percent working interest.

Newpark Shipbuilding has increased its portfolio of businesses from one to six in the past 18 months, but don't expect this Houston-Galveston region company to rest on its laurels. More growth is expected and planned. Newpark Shipbuilding was formed in the early 1990s by Sam and Frank Eakin. The Eakins, with an investment banking background, saw opportunity in the Houston-Galveston area for consolidation amidst the fragmented shipbuilding industry. The Eakin's goal was a strong shipyard network. Less than a decade later, Newpark Shipbuilding has acquired enough yards to constitute what the company refers to as a "shipbuilding network." Altogether, six facilities have been acquired in the Houston-Galveston area, employing more than 1,200 people.

FirstWave/Newpark Shipbuilding has been awarded a contract by Canal Barge Company, Inc. of New Orleans, La. for the construction of 10 double skin tank barges. All 10 barges are scheduled for delivery in 1999.

FirstWave/Newpark Shipbuilding has been awarded a contract by Diamond Offshore Drilling of Houston, Texas for completion of upgrades to the drillship Ocean Clipper, which returned to Galveston for the additional upgrades on August 16. "We're pleased that Diamond brought Ocean Clipper back to our yard for this project," said Francis Fair, FirstWave's executive vice president Galveston Operations. "FirstWave performed work on Clipper earlier this year, and we appreciate Diamond's confidence in us to provide additional services for the vessel."

Schlumberger/Sedco Forex has contracted FirstWave/Newpark Shipbuilding for upgrades and maintenance work on the offshore semi-submersible drilling rig Bill Shoemaker. The rig was brought into Newpark Shipbuilding's East Pelican Island yard in Galveston, Texas in December 1998. The company provides repair, conversion, new construction and related services for barges, boats, ships, offshore rigs, and other vessels in the offshore and inland marine industries.