Marine Link
Saturday, August 18, 2018

Oilfield Equipment News

Ferguson Appoints Partner OPS-OES

Simon de Koning (Photo: Ferguson Group)

Ferguson Group Singapore, a specialist in the provision of DNV 2.7-1 / EN12079 offshore containers, reefers, tanks, waste skips, baskets, accommodation and engineering workspace modules has announced the appointment of OPS Oilfield Equipment and Services Ltd (OPS-OES) as the group’s new exclusive partner for Thailand. Bangkok Headquartered OPS Oilfield Equipment and Services Ltd, has been servicing the offshore and onshore energy sector in Thailand for many years. It covers offshore operations from bases in Songkhla and Sattahip.

Wilhelmsen Ships Service: Mastering Complex Logistics

Photo: WSS

From racing boats to steel pipelines, windmill blades to massive hydraulic hammers, Wilhelmsen Ships Service (WSS) says its personnel in the Middle East can move just about anything, anywhere. Last summer, WSS was contracted to source ocean transportation options for the return of offshore marine equipment from the United Arab Emirates to Germany. The cargo consisted of 10 packages of pile driving accessories for onshore and offshore installation, including 13 meters long, 123 metric ton hydraulic hammer.

No Relief Yet

Oilfield service companies were not nearly as lucky as their oil producing counterparts. While net income in the oil producing industry was up over the 1998 third-quarter, oilfield service companies were still feeling the pain of the low oil prices from earlier in the year. While the stock market - the global business measuring stick - has generally been positive on the offshore oilfield sector throughout much of the year, there has been a relapse of sorts in October, as uncertainty surrounding OPEC output quotas has largely dampened the year's progress. In fact, a major tracker of offshore industry stocks, Warburg Dillon Read, in mid-October cut its ratings of four oilfield equipment and services companies.

Is It Back?

To say the Gulf of Mexico maritime business had a down year would be a major understatement. But rags-to-riches-to-rags experience of the past has resulted in a consolidated, resourceful group of companies poised to pounce on the next market upturn … which should be very soon. The business trends of consolidation and globalization that have largely defined the late 1990s have touched every level of business in the U.S., including the Gulf of Mexico maritime industry. Companies that had largely depended on "business as usual" are generally out of business today. The result: a resilient industrial base that is poised to prosper in good times and bad. "Business is bad right now, as the oilfield is our primary source of business," said Ralston P.

Crowley, Triunfo To Establish Joint Venture

Crowley Marine Services and Triunfo Operadora Portuaria Ltd., intend to form a joint venture to operate a deepwater logistics base in the State of Rio de Janeiro, Brazil. GAIA Comercial Exterior will participate as Crowley's Brazilian representative for energy logistics services. The partners announced the joint venture during a signing ceremony at Rio's prestigious Naval Club. The deepwater logistics base will be located at Triunfo's marine terminal on Guanabara Bay and will manage the complex logistics and transportation required to support deepwater exploration and production in the Campos and Santos basins of Brazil. The base will feature over 300 m of dedicated dock space with 7.5 m draft, as well as significant open and covered warehousing, cranes, and material handling equipment.

Repowered Tug Tows Nonstop

Photo courtesy Laborde

For its third repower with Smith Maritime, Laborde supplied three Mitsubishi S12R-Y2MPTK Tier II engines rated at 5,000 hp for the tug Rhea. For its maiden voyage, Rhea towed a huge piece of oilfield equipment from Texas to Cape Verde Islands off of Africa before moving on to Nigeria, towing continuously for seven weeks. Rhea is a small, powerful, agile, sea-going tug capable of withstanding the rigors of ship and barge towing or ocean rescue service in all weather conditions. It’s fitted and built for extended service at sea or in distant and remote locations.

Abakan Incorporates Subsidiary, MesoCoat

Abakan Inc., a company in the advanced coatings and metal formulations markets, announced the incorporation of a new subsidiary, MesoCoat Coating Services Inc. (MCS), to provide thermal spray coating services using its multiple award-winning nanocomposite PComP coating materials to improve component longevity and to combat corrosion and wear in the oil and gas, mining, aerospace, chemicals, metal processing and metal finishing industries. MCS will provide wear- and corrosion-resistant coating application services utilizing conventional thermal spray powders, as well as proprietary PComP(TM) nanostructured coating materials. MCS already has a fully functional thermal spray coating facility with one coating cell in Euclid…

SBI Wins Jack-up Design and Engineering Contract

SBI Offshore Limited, which is pursuing higher-value oil and gas engineering projects, said today it has secured a $24 million contract to provide design and engineering services for a jack-up drilling rig that can operate in water depths of up to 110 meters. SGX Catalist-listed SBI Offshore said its wholly owned subsidiary, SBI O&M Pte. Ltd., signed the contract with a Middle East-Chinese Consortium which comprises six parties that have varied interests in oil and gas activities. Under the contract, SBI O&M will provide design, engineering and supervision services for a jack-up drilling rig that will meet requirements of the American Bureau of Shipping Classification A1 for Self- Elevating Drilling Unit.

SBI Offshore Negotiating Contract for Rig Builds

SBI Offshore Limited has announced that the Middle East-Chinese consortium, which recently awarded its subsidiary a contract to provide design and engineering services for a jack-up drilling rig, has commenced discussions with the SGX Catalist-listed company to build up to five units of the rig. SBI Offshore said that it had commenced negotiations with the consortium about a week after securing from the latter the $24 million contract to design a rig that will meet American Bureau of Shipping Classification (A1 Self-Elevating Drilling Unit) requirements. The consortium, whose members are involved in oil and gas activities, has indicated that the rigs will eventually be deployed in the Middle East and various parts of Asia for operation in water depths of up to 110 meters.

National Oilwell Varco to Cut 1,500 Norwegian Jobs

National Oilwell Varco Inc., the largest U.S. oilfield equipment maker, said it will cut its Norwegian workforce by 1,500 by the end of this year as low oil prices have reduced investments. It plans to cut 900 permanent jobs and 600 contractors, the firm said in a statement on Wednesday. "The reason for the lay-offs is the big change in the market situation for our industry over the last year with reduced investments and reduced sale of new equipment," it said. "The uncertain market situation also means that we can't say how comprehensive the process of laying off people will be in the longer term". Norway's Statoil said on Tuesday it will cut up to 7 percent of its workforce and a third of its consultants by the end of 2016…

Kirby Announces 2011 4Q & FY Numbers

Kirby Corporation Announces Record 2011 Fourth Quarter and Year Results. Kirby Corporation ("Kirby") (NYSE: KEX) today announced record net earnings attributable to Kirby for the fourth quarter ended December 31, 2011 of $56.2 million, or $1.00 per share, compared with $31.6 million, or $.59 per share, for the 2010 fourth quarter. Consolidated revenues for the 2011 fourth quarter were a record $550.1 million compared with $286.3 million reported for the 2010 fourth quarter. The 2011 fourth quarter results included a $2.7 million before taxes, or $.03 per share, multi-year income tax refund, a $1.25 million before taxes, or $.01 per share…

Kirby Corp. Announces Record 3Q Results

Kirby CEO Joe Pyne (Photo: Greg Trauthwein)

Record 2014 third quarter earnings per share of $1.34 compared with $1.21 in the 2013 third quarter, which included a $0.08 benefit due to the reduction of the United earnout liability. Kirby Corporation announced record net earnings attributable to Kirby for the third quarter ended September 30, 2014 of $76.7 million, or $1.34 per share, compared with $69.1 million, or $1.21 per share, for the 2013 third quarter, which included a $0.08 per share benefit due to the reduction of the United earnout liability.

Onshore Spending on the Cusp of Recovery?

Graph Source: Douglas-Westwood World OFS and OFE Market Forecast Reports Q2 2016

DW’s recently released quarterly World Oilfield Services Market Forecast (OFS) and World Oilfield Equipment Market Forecast (OFE) continue to suggest 2016 will see the start of a barren period for the offshore OFS and OFE sectors. In line with previous editions of the report, a significant drop in project sanctioning, coupled with low rig dayrates, will see annual OFS expenditure average $49 billion (bn) over 2016-2020, while OFE expenditure will decline from $69bn to $43bn over the same period.

OMSA Applauds Move to Enforce Jones Act

The U.S. Customs and Border Protection (CBP) has issued a proposal, open for public comment through mid-August, that will take important steps to help enforce the Jones Act more effectively and protect American maritime jobs, according to the Offshore Marine Service Association (OMSA). Under the Jones Act, cargo can only be carried between two U.S. points on vessels that are owned and crewed by Americans and built in American shipyards. CBP, which administers the Jones Act as it applies to offshore energy operations, announced on July 17 that it plans to revoke or modify 20 rulings to restore the original intent of the Jones Act as it applies offshore.

ITS $55M Investment from Lime Rock

ITS changing out BOP (blow out preventer) rams in Mexico (Photo courtesy Fifth Ring Integrated Corporate Communications)

ITS Group, a specialist provider of oilfield equipment and services to the global oil and gas industry, announced a $55m equity investment from leading energy-focused private equity firm Lime Rock Partners. The agreement provides Lime Rock with a minority stake in ITS Group in return for providing growth capital to be used to support the company’s growth aspirations as it aims to become a major global player in the oilfield drilling sector. Bob Kidd, ITS Group executive chairman said, “This is an exciting time for the Group with unprecedented levels of opportunity in a challenging environment.

GE to Merge Oil & Gas Unit with Baker Hughes

Photo: GE

General Electric Co said on Monday it would merge its oil and gas business with Baker Hughes Inc, creating the world's second-largest oilfield services provider as competition heats up to supply more-efficient products and services to the energy industry after several years of low crude prices. The deal to create a company with $32 billion in annual revenue will combine GE's strengths in making equipment long-prized by oil producers with Baker Hughes's expertise in drilling and fracking new wells.

Floating Production Expenditure set to Double

Figure 1: Global FPS Installation Capex by Region 2008-2017 (Source: Douglas-Westwood)

Douglas-Westwood forecast that between 2013 and 2017, $91bn will be spent on floating production systems (FPS) – an increase of 100% over the preceding five-year period. A total of 121 floating production units are forecast to be installed – a 37% increase. This growth is driven by multiple factors, such as a larger proportion of newbuilds and conversions compared to redeployments, a greater degree of local content which often results in a higher cost base and general offshore industry cost inflation.

Floating Production

Douglas-Westwood forecast that between 2013 and 2017, $91bn will be spent on floating production systems (FPS) – an increase of 100% over the preceding five-year period. A total of 121 floating production units are forecast to be installed – a 37% increase. This growth is driven by multiple factors, such as a larger proportion of newbuilds and conversions compared to redeployments, a greater degree of local content which often results in a higher cost base and general offshore industry cost inflation.

National Oilwell Expects Offshore Rig Demand to Slow

courtesy of National Oilwell Varco

National Oilwell Varco Inc, the largest U.S. oilfield equipment provider, said orders fell by nearly a quarter in the first quarter and it expects demand for new offshore rigs to slow during the second half of the year. The company's shares fell about 7 percent. Demand for contract drilling is softening as rigs ordered during boom times are being delivered now. Large oil companies are tightening spending after a decade of double-digit increase in budgets as oil prices stagnate and project costs rise.

Repowered Tug Tows 7 Weeks Nonstop

Photo courtesy Laborde

When business depends on commercial vessels, it's essential for these boats to stay in good condition. Unreliable engines and equipment can lead to days or weeks off the water for repairs, resulting in lost customers. To ensure its fleet is always prepared for the job, Smith Maritime depends on Laborde Products. For its third repower with Smith Maritime, Laborde supplied three Mitsubishi S12R-Y2MPTK Tier II engines rated at 5,000 hp for the tug Rhea. For its maiden voyage, Rhea towed a huge piece of oilfield equipment from Texas to Cape Verde Islands off of Africa before moving on to Nigeria.

Aker Solutions Acquire UK Subsea Company

Aker Solutions has agreed to acquire a majority stake in Aberdeen-based Enovate Systems Ltd. Enovate Systems Limited is a leading technology company within the subsea well control equipment sector. The financial details of the acquisition are undisclosed. Enovate, which currently employs 62 people, has developed a wide range of unique and patented components and products for use in open water workover systems, in riser workover systems, rigless intervention systems and drilling safety systems. Specific advantages are superior cutting and sealing capabilities and the unique use of complete metal-to-metal sealing solutions which significantly reduce the probability of leakage and improve safety.

Maritime Reporter Magazine Cover Aug 2018 - The Shipyard Edition

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