Production Services News

BW Offshore, a provider of floating production services to the oil and gas industry, has successfully completed a NOK 900 million senior unsecured bond issue with a coupon of three months NIBOR + 4.50% and maturity in December 2023.The Oslo Stock Exchange-listed company said that the settlement of the new bond issue is scheduled for 4 December 2019.The existing NOK bonds have either been repurchased as part of the offering or will be called with settlement mid-January 2020.In combination with the USD 297.4 million convertible bond issue announced on 5 November 2019, the new bond successfully concludes the company’s refinancing of its existing NOK bonds maturing between 2020 and 2022…

Petrofac, a provider of oilfield services to the international oil and gas industry, has been awarded a major contract extension in support of Repsol Sinopec Resources UK Limited’s North Sea operations.The Jersey-based energy services firm said in a press note that it will provide engineering support services as a tier 1 contractor for brownfield modifications and projects across Repsol Sinopec Resources UK’s operated assets and terminal at Flotta.Nick Shorten, Managing Director for Petrofac Engineering and Production Services West, said: "We are delighted that Repsol Sinopec Resources UK has exercised its option to extend our contract.

Oilfield services firms C&J Energy Services and Keane Group, said  that they will merge in an all-stock deal valued at about $1.8 billion.C&J Energy, which offers a suite of oil and gas production services, and Keane, which specializes in well completions would combine in what the companies described as a merger of equals. The deal would create a company with more than $4 billion in annual revenues.Under the terms of the merger agreement, which has been unanimously approved by the Boards of Directors of both companies and the Special Committee of the Keane Board, C&J shareholders will receive 1.6149 shares of Keane common stock for each share of C&J common stock owned. The merger agreement permits C&J to pay its shareholders a cash dividend of $1.00 per share prior to closing.

Austal USA LLC, Mobile, Alabama, is awarded a $16,322,000 cost-plus-fixed-fee order against previously awarded contract N00024-11-C-2301 to provide engineering, management, and production services in support of prefabrication efforts, material procurement, and execution of work items for littoral combat ship USS Cincinnati (LCS-20) extended industrial post-delivery availability (EIPDA). The EIPDA is accomplished within a period of approximately 12 weeks between the time of ship custody transfer to the Navy and the shipbuilding and conversion, (Navy) obligation work limiting date. Efforts will include program management, advance planning, engineering, design, prefabrication, and material kitting. Work will be performed in Mobile, Alabama, and is expected to be complete by August 2019.

Aberdeen, UK-based Verus Petroleum has secured a 12-fold increase in its production – from 1,500 to 18,000 barrels per day in less than a year – with the closing of three recent acquisitions on the UK Continental Shelf.A press release from the petroleum exploration and production services provider said that it  has recently completed three significant acquisitions; an interest in the Babbage gas field acquired from Premier Oil on 6th December, on the back of completing transactions to acquire Cieco Exploration & Production (UK) Limited and Equinor’s Alba field interest in November.The private equity backed independent operator said that these three deals, each with an economic date of 1st January 2018, were funded by a combination of equity, existing cash reserves and debt.

The provider of floating production services to the oil and gas industry BW Offshore has signed an agreement to dispose of the FSO Belokamenka for recycling in compliance with the Hong Kong Convention.The Oslo-listed company said in a press release that the FSO Belokamenka  is an Ultra Large Crude Carrier (ULCC) of 360,700 deadweight-ton capacity built in Japan in 1980.The vessel is 340.5 meters long, 65 meters wide and has a depth of 31.5 meters. It is flagged and registered in Panama and classed by DNVGL, and has been in lay-up off Indonesia since completing a contract as a crude oil terminal off Murmansk, Russia, in late 2015. The vessel is sold for a cash consideration of approximately USD 20 million.To date the recycling yard has not been chosen.

The provider of floating production services to the oil and gas industry BW Offshore is pleased to announce the sail away of the FPSO BW Adolo. The vessel has left anchorage in Singapore and is currently in transit to the Tortue field offshore Gabon. BW Adolo is expected to arrive at the field in August 2018. "We are firmly on track for first oil later this year", said Carl K. Arnet, the CEO of BW Offshore. The BW Adolo has an oil storage capacity of 1,350,000 barrels and a production capacity of 40,000 barrels of oil per day. The Tortue field is one of four proven discoveries in the Ruche area, within the Dussafu Licence, offshore Gabon. BW Offshore also participates in developing proven offshore hydrocarbon reservoirs.

Global provider of floating production services to the oil and gas industry BW Offshore has signed an interim extension agreement for Abo FPSO with Nigerian Agip Exploration Ltd, a subsidiary of ENI S.p.A., until 30 April 2018. The short term extension has been agreed to secure operational continuity while joint work is continuing to conclude the negotiations. Two weeks ago, BW Offshore received notice from Petrobras of the exercise of a one-year extension of the contracts relating to the FPSO Cidade de São Mateus. BW Offshore will continue its dialogue with the client towards finalising a firm plan for the FPSO. The FPSO Cidade de São Mateus remains in lay-up. BW Offshore is a leading global provider of floating production services to the oil and gas industry.

BW Offshore has signed an agreement with Petrorio for a one-year extension for the lease and operation of the FPSO Polvo. The firm period has been extended to Q3 2019 (from Q3 2018), with options until Q3 2022. The company has also announced that BW Catcher FPSO received the First Oil Certificate following the successful completion of the 72-hour interim performance test subsequent to the introduction of hydrocarbons on 23rd December 2017. BW Catcher FPSO is owned and operated by BW Offshore and the First Oil Certificate confirms the commencement of a seven-year fixed term contract, with extension options of up to 18 years. The Catcher field partnership is made up of Premier Oil (50%), Cairn Energy (20%), MOL Group (20%) and Dyas (10%).

BW Offshore, a leading global provider of floating production services to the oil and gas industry, announced the sail away of the FPSO BW Catcher. The vessel has left Keppel Shipyard in Singapore and is currently in transit to the Catcher field in the central North Sea. BW Catcher is expected to reach UK waters early in the fourth quarter, depending on prevailing weather conditions. Upon its arrival, BW Catcher will commence a seven-year fixed term contract, with extension options of up to 18 years, with Premier Oil. Based on a field life of 10 years, the contract value is USD 2.3 billion including FPSO charter rate and opex. "The BW Catcher has been completed on time and within budget, and we are especially pleased with the good HSE performance during the construction project.

BW Offshore, which delivers floating production services to the oil and gas industry, sees signs of an improved market. "It's still early days but we definitely see a pick-up in discussions and tendering activity," CEO Carl Arnet said during the firm's first-quarter earnings presentation. Says Brazil will be important but also sees activity elsewhere. BW Offshore reported Q1 earnings below forecast on Monday. Regarding the FPSO Cidade de Sao Mateus, which has been off work since an explosion in February 2015: Insurance settlement gave a positive liquidity effect in Q1.

EMAS Offshore Limited announced today a net loss of US$265.3 million for the full year ended 31 August 2016 (“FY2016”). Net loss for the three months ended 31 August 2016 (“4QFY2016”) stood at US$98.5 million. For the full year period under review, the Group recorded revenue of US$167.6 million, as compared to revenue of US$247.2 million in the year-ago period (“FY2015”). This decline in revenue was the result of continual weakness in the offshore industry leading to markedly lower demand as well as general oversupply in the offshore support vessels (“OSV”) segment. Gross loss for the year stood at US$49.8 million as compared to gross profit of US$29.4 million in the previous corresponding period.

Seattle-based naval architecture and marine engineering consultancy Glosten said it will chair a panel on modern shipbuilding at this year’s SNAME Maritime Convention (SMC) in Bellevue, Wash. The panel will discuss new technologies in shipbuilding, how to address an aging workforce, new approaches to training, and nontraditional design deliverables. “We’re excited to bring attention to this critical topic at SMC this year,” said Josh Horst, PE, Glosten’s Manager of Production Services and SMC Panel Chair. “Shipbuilding is vital to Seattle’s economy, and advances in technology are changing the approach to traditional practices. As designers, we have a responsibility to critically evaluate these advancements, and collaborate with shipyards to implement them.

Petrofac is set to build on its provision of reimbursable services for Total E&P UK following the award of an enhanced three-year contract extension on the Alwyn and Dunbar platforms in the Northern North Sea. The contract, worth in the region of $100 million, comes with two one-year options and has been reconfigured, with Petrofac providing an enhanced range of offshore services. This award builds on a relationship with Total which began in 2005 to support the Alwyn and Dunbar assets, and will secure more than 150 offshore jobs.

Intertek has enhanced its sample cylinders services with the aim of providing further cost savings for clients. Sample cylinders are used by offshore chemists to transport live crude, gas and water samples from offshore to onshore laboratories for testing. Intertek has invested £180,000 in 200 high-pressure cylinders to meet an increased demand from clients for analysis services. Fifty cylinders will be specially coated to allow the safe and effective transportation of samples containing mercury and hydrogen sulphide. Both elements can adhere to the internal surfaces of standard stainless steel cylinders, rendering analysis unreliable.

The SENER engineering and technology group will celebrate its sixtieth anniversary in 2016. It has grown into a multidisciplinary international group which offers solutions in Aeronautics, Engineering and Construction, and Energy and Environment. SENER was founded on the basis of three important premises: to create high-quality projects, to anticipate the industry’s problems with innovative solutions, and to be independent and flexible in order to adapt to the market’s demands.

Floating production services provider SBM Offshore responded to media reports of a potential settlement with Petrobras regarding tenders in Brazil, stating the discussions are presently ongoing and a conclusion has not been reached.   SBM Offshore announced September 28 that it was invited to participate in Petrobras tenders.   The company said it is in constructive discussions with the authorities but will not further comment pending the finalization of these discussions.

Ezra Holdings saw its net profit for 9M15 grow 50.6 percent to US$51.5 million despite a net loss of US$3 million for the latest quarter, as sluggish oil prices weighed on activities of the oilfield service industry. For the first nine months of its financial year, Ezra posted a net profit of $51.5 million, up 51 percent on the year, though revenue for the period dropped 3 percent to US$391 million, the services provider to the offshore oil and gas sector said in a statement. 9M15 revenue declined due to a 2.8 percent decrease in revenue from the group’s subsea services division and offshore support and production services division, partially offset by better performance from the marine services division.

Kongsberg Maritime Engineering (KME), the wholly owned Engineering, Procurement and Construction (EPC) subsidiary of global maritime technology developer Kongsberg Maritime, will deliver an Integrated Control and Safety System for the new BW Offshore Catcher FPSO. The contract follows BW Offshore’s signing of a lease and operate contract with Premier Oil and its joint venture partners at the end of April 2014 for a FPSO to operate on the Catcher oil field in the U.K. North Sea. The field is owned by Premier Oil (50%, operator), Cairn Energy (30%) and MOL (20%). BW Offshore's scope includes the delivery of the FPSO, mooring system, installation and operation of the unit throughout the charter period.

Provider of floating production services to the oil and gas industry, BW Offshore, says it has signed a 5-year, $12 million contract with Orange Business Services for an end-to-end satellite communication solution for its fleet of oil and gas production vessels. Orange Business Services is providing Maritime VSAT – a fully managed end-to-end satellite-based communication solution – which fully integrates BW Offshore’s 14 vessels and two land-based locations into the Orange MPLS network. This solution offers BW Offshore personnel access to the exact same business applications, communication and entertainment services at sea as on land, no matter where the vessel is located.

Seattle-based naval architecture consultancy Glosten has joined the list of North American companies utilizing Nupas-Cadmatic, a CAD/CAM engineering software system for the marine and offshore industry. Glosten will utilize the software to complete the detail design of Vigor’s Alaska Class Ferry, a two-vessel project at their Ketchikan Alaska shipyard. Glosten said a few features of Nupas-Cadmatic made it the best choice for the naval architecture firm. Firstly, the tool was developed in conjunction with world-class shipyards and incorporates the collective experience of a large international user base. Secondly, the tool’s parametric modeling capabilities and embedded shipbuilding resources are a powerful way to reduce design hours.

Edison Chouest’s Fairweather, LLC lessens Arctic risk while increasing efficiencies in a challenging environment. As interest in offshore commerce in the Arctic increases, key components of any successful operation in this theatre include logistics, assets, and of course, a healthy dose of experience while operating in cold weather environments. To that end, Fairweather LLC’s Arctic operations include the Deadhorse Aviation Center (DAC). Strategically located at Prudhoe Bay, DAC provides oil companies and their suppliers with an aviation command center to manage both onshore operations and Outer Continental Shelf (OCS) exploration and production activities on the Arctic Ocean and Beaufort Sea.

Intertek, the global provider of quality and safety services, will address key topical issues at the NACE Corrosion 2014 conference this week. Corrosion costs $276 billion annually in the U.S. alone and is often responsible for damage, downtime and the costly replacement of vital industrial infrastructure on a global scale. Experts from Intertek’s corrosion solutions team will present six papers on current topics that affect the oil and gas and a range of other industries globally at NACE Corrosion 2014. The event will take place at the Henry B Gonzalez Convention Center in San Antonio, Texas, between March 9-13. Raymond Pirie, Vice President of Exploration and Production services at Intertek…