Marine Link
Monday, April 23, 2018

Shah Deniz News

Statoil Completes Sale of Shah Deniz Stake

The Shah Deniz platform in the Caspian Sea. (Photo: Shahin Abasaliyev)

On May 1, 2014 Statoil completed the farm down of 10% of its interest of 25.5% in the Shah Deniz Production Sharing Agreement and the South Caucasus Pipeline Company Limited to BP (3.33%) and SOCAR (6.67%). The consideration for the sale and transfer of these assets is USD 1.45 billion. The divestment that was announced in December 2013, is in line with Statoil’s strategy of portfolio optimisation based on rigid prioritisation of future investments, and capturing value created from a significant gas position.

Statoil Makes Final Investment Decision on Shah Deniz Stage 2

Statoil  ASA has together with partners in the Shah Deniz consortium in Azerbaijan  made a final investment decision for the Stage 2 development of the Shah Deniz gas field, in the Caspian Sea, offshore Azerbaijan. Statoil also enters an agreement to divest a 10% share of its 25.5% holdings in Shah Deniz and the South Caucasus Pipeline. The BP operated Shah Deniz consortium  announces the final investment decision for the Stage 2 development of the Shah Deniz gas field, in the Caspian Sea, offshore Azerbaijan. This decision triggers plans to expand the South Caucasus Pipeline (SCPX) through Azerbaijan and Georgia, to construct the Trans Anatolian Gas Pipeline (TANAP) across Turkey and to construct the Trans Adriatic Pipeline (TAP) across Greece, Albania and into Italy.

Keppel FELS Strikes Steel on Shah Deniz TPG500

Keppel FELS Ltd, the offshore arm of Keppel Corporation through Keppel Offshore & Marine (O&M), has cut its first piece of steel signifying the start of the fast-track fabrication on the Shah Deniz TPG500 Platform, to be installed in the Shah Deniz gas and condensate field in the Azerbaijan sector of the Caspian Sea and operated by BP. At the strike steel ceremony, Mr Tong Chong Heong, MD & COO of Keppel O&M, said, “The strike steel ceremony is significant because it shows that we have moved very quickly forward since the signing of the contract. Keppel FELS was awarded the US$96 million fabrication project from BP Exploration (Shah Deniz) Ltd, the Operator of the Shah Deniz Gas Export Project.

Total Sells Its 10% Interest In Shah Deniz To TPAO

Total's Map of Azerbaijan

Total today signed an agreement to sell its 10% interest in the Shah Deniz field and the South Caucasus Pipeline to TPAO, the Turkish state-owned E&P company. The transaction is valued at $1.5 billion and is subject to customary approvals. “The sale of our interest in Shah Deniz is in line with Total’s active portfolio management and the focus of its investment capability on more strategic assets,” said Michael Borrell, Senior Vice-President Continental Europe and Central Asia at Total’s Exploration and Production. “This sale is another step forward in achieving our asset sale program.

Azeri Shipyard, BP Sign Vessel Construction Contract

Azeri state energy company SOCAR's shipyard and British oil major BP have signed a $378 million deal to design and build a subsea construction vessel for the Shah Deniz II gas project, BP said on Wednesday. Azerbaijan's biggest gas field, Shah Deniz is being developed by consortium partners BP, Statoil, SOCAR and others. Shah Deniz I has been pumping gas since 2006 and has an annual production capacity of about 10 billion cubic metres of natural gas. The next phase, Shah Deniz II, is important for Europe in terms of providing an alternative to gas supplies from Russia's Gazprom.

Caspian Sea Shipyard Wins BP Exploration SCV Contract

File photo

Keppel supported Baku Shipyard has won a first major contract from BP Exploration (Shah Deniz) Ltd, the operator of the Shah Deniz gas field development, to design and build a Subsea Construction Vessel (SCV). The contract is worth US$378-million, say the shipyard. When completed, the SCV will be deployed for the Stage 2 development of the Shah Deniz field, which lies some 70 kilometres offshore in the Azerbaijan sector of the Caspian Sea. The Shah Deniz Stage 2 project requires a subsea installation vessel to install the subsea structures over 11 years between 2017 and 2027.

5-Yrs Extension for Rig Heydar Aliyev

Maersk Drilling has won a contract extension for one of its offshore drilling rigs.

Maersk Drilling has been awarded a 5-year contract extension for the semi-submersible Heydar Aliyev rig with BP Exploration (Shah Deniz) Limited acting as Operator of  the Shah Deniz field . The rig will continue working on the development of the Shah Deniz field in the Caspian Sea offshore Azerbaijan. The extension is in direct continuation of the current contract ending May 2016 and extends the contract until May 2021. The estimated value of the contract extension is up to USD 523m.

Azerbaijan to Double Oil Production

Azerbaijan plans to double its oil output by 2010, the country's energy minister said Wednesday. Azeri Energy Minister Natiq Aliyev said the Caspian nation's crude production, which stood at 32.3 million tons last year, would reach 65 million tons in 2010. Aliyev said most of the oil would be produced at the Azeri-Chiraq-Guneshli offshore fields. Another offshore field, the Shah Deniz gas project, will account for the bulk of the nation's natural gas output, which is expected to reach 30 billion cubic meters in 2010. Crude supplies began last year via the $4 billion Baku-Tbilisi-Ceyhan pipeline that allows the West to tap oil from the Caspian Sea fields.

Subsea Construction Vessel Launched in Azerbaijan

Designed by Keppel Offshore & Marine and built by Baku Shipyard, the state-of-the-art subsea construction vessel, Khankendi, will install the biggest subsea production system in the Caspian Sea (Photo: Keppel)

The vessel was named Khankendi by the President of Azerbaijan, H.E. Ilham Aliyev, at a ceremony in Baku Shipyard and launched by the Shah Deniz consortium. Baku Shipyard LLC, a joint venture between Keppel Offshore & Marine Ltd (Keppel O&M), State Oil Company of Azerbaijan Republic (SOCAR) and Azerbaijan Investment Company (AIC), has completed a Subsea Construction Vessel (SCV) for the Caspian region. The Khankendi will be deployed to the Shah Deniz field where it is expected to perform subsea installation and construction work over the next eleven years.

Keppel Wins $88.5M in Floating Production Contracts

Keppel Offshore & Marine Ltd (Keppel O&M)'s local and overseas subsidiaries continue to win support from repeat customers by securing four contracts worth a total of about $88.5 million. In Singapore, Keppel O&M's wholly-owned subsidiary Keppel Shipyard Ltd (Keppel Shipyard) secured two conversion contracts - the first is for a Liquefied Natural Gas (LNG) Floating Storage Unit (FSU) vessel awarded by Armada Floating Gas Storage Limited, a wholly-owned subsidiary of Bumi Armada Berhad (Bumi Armada); the second is for a Floating Production Storage and Offloading (FPSO) vessel awarded by Yinson Production (West Africa) Pte Ltd (Yinson), a wholly-owned subsidiary of Yinson Holdings Berhad. Work on the LNG FSU conversion for Bumi Armada is scheduled to be completed in 3Q 2016.

BP Finds Major Gas Field

According to a Bloomberg report, BP Plc discovered a gas deposit in the Caspian Sea that may double production from the largest natural gas development in Azerbaijan. BP shares rose 2.8 percent, the most in a month, in London trading after the company announcement. With the latest discovery, the field may be able to pump enough gas to supply Belgium and Luxembourg together. BP and partners including StatoilHydro ASA plan to spend $4.2b on the site's first stage, which started pumping fuel to Turkey in July, easing Europe's dependence on supplies from Russia's OAO Gazprom. The announcement is the second ``major'' discovery within a week after Petroleo Brasileiro SA said an offshore field could be Brazil's biggest ever oil find.

Keppel Secures $125 mln Repeat Contracts

Courtesy Keppel Offshore & Marine Ltd

Keppel Offshore & Marine Ltd (Keppel O&M)'s local and overseas subsidiaries continue to win strong support from repeat customers by securing four contracts worth a total of about S$125 million. In Singapore, Keppel O&M's wholly-owned subsidiary Keppel Shipyard Ltd (Keppel Shipyard) secured two conversion contracts - the first is for a Liquefied Natural Gas (LNG) Floating Storage Unit (FSU) vessel awarded by Armada Floating Gas Storage Limited, a wholly-owned subsidiary of Bumi Armada Berhad (Bumi Armada)…

Statoil Second Quarter Results 2013

Statoil's second quarter 2013 net operating income was NOK 34.3 billion. Adjusted earnings were NOK 38.0 billion. "Statoil delivered an operationally solid quarter. We produced as planned, delivering record production from our portfolio outside Norway. We are on track and maintain our guidance for 2013," said Helge Lund, Statoil's president and CEO. "Our financial results were impacted by lower prices for liquids and gas and weak trading results. However, we have maintained good cost control and delivered strong earnings, particularly from our international portfolio. In the quarter, Statoil ramped up several fields. The company continues to have a high activity level in projects on the Norwegian continental shelf…

Topaz wins $100-million BP Contracts

Topaz Energy and Marine, a leading offshore support vessel company with primary operations in the Middle East and Caspian, today announced the win of two contracts with BP in Azerbaijan’s largest oil and gas fields worth approximately $100 million (USD). Topaz has acquired two European built Platform Supply Vessels (PSVs) to serve the contracts which stretch over five years, including options. The boats will be deployed in Q4 2013 and Q2 2014 in support of BP’s operations in the Azerbaijan offshore fields of ACG and Shah Deniz 2 performing supply duties.

Topaz Buys Two Anchor Handling Vessels

Caspian Challenger

Topaz Energy and Marine has announced the acquisition of two large and modern Anchor Handling Towage and Supply Vessels (AHTSV) at a purchase price in excess of $100 million (USD). The vessels, the Caspian Challenger and the Caspian Endeavour, are sister vessels built by Kleven Maritime in Norway in 2008 and 2009, respectively. The vessels are equipped with dynamic positioning DP2, automated safe anchor handing capabilities and are currently the most powerful vessels operating in the Caspian basin at 17,200 BHP and 190 metric tons bollard pull.

Greece to Assess Pipeline for Cypriot and Israeli Gas

Reuters - Greece launched an international tender on Monday for a study to assess the feasibility of a proposed pipeline to transmit gas from Israel and Cyprus in an effort to reduce dependence on Russian supplies. The Eastern Mediterranean Pipeline is designed to initially carry 8 billion cubic meters a year of Israeli and Cypriot gas. It would stretch from Israel's Leviathan natural gas field to Greece and onto European markets through the IGI-Poseidon pipeline, led by Italian utility Edison and state-controlled Greek utility DEPA. The European Commission has said Cypriot gas could play an important role in diversifying supplies but its development is complicated by the long-standing rift between Cyprus and Turkey. The pipeline would pass through disputed waters.

Statoil Hydro wins Offshore Brazil Bid

Statoil Hydro on November 27 said it has won a bid to conduct offshore exploration off Brazil. The Norwegian group was awarded two blocks offshore. The blocks, numbered CM529 and CM530, are located in sea depths of around 100 m. The licenses for the two blocks were to be operated by Anadarko Petroleum Corporation that would have a 50 percent stake, the same as Statoil Hydro. Statoil Hydro did not state what the bid cost. The blocks were located next to the heavy oil field Peregrino that was slated to come on stream in 2010. Statoil Hydro has a 50-percent-stake in the Peregrino field in the Campos basin. The Norwegian group was created October 1 when Statoil and its rival Norsk Hydro merged their oil and gas activities.

Topaz, BP Ink 14 Offshore Ship Contract

The PSV Caspian Server Courtesy TOPAZ

Topaz Energy and Marine, a leading offshore support vessel company, has secured 14 offshore support vessel contracts with BP Exploration (Caspian Sea) Limited ("BP"). Under the terms of the agreement, Topaz will supply 14 offshore support vessels for a five year period plus two one-year options at current market terms, primarily in support of BP’s ACG and Shah Deniz II fields offshore Azerbaijan. The agreement extends currently running contracts for the 14 vessels until 2023 including all options.

Topaz to Supply 14 Vessels for BP in Azerbaijan

Photo: Topaz Energy and Marine

Offshore support vessel company Topaz Energy and Marine informs it has secured 14 offshore support vessel contracts with BP Exploration (Caspian Sea) Limited. Under the terms of the agreement, Topaz will supply 14 offshore support vessels for a five-year period plus two one-year options at current market terms, primarily in support of BP’s ACG and Shah Deniz II fields offshore Azerbaijan. The agreement extends currently running contracts for the 14 vessels until 2023 including all options. These contracts bring Topaz’s global revenue backlog to nearly $1.4 billion.

Statoil 2Q 2015 Earnings Slip

CEO of Statoil ASA, Eldar Sætre

Statoil delivered Adjusted earnings of NOK 22.4 billion and adjusted earnings after tax of NOK 7.2 billion in the second quarter. Statoil reported Net income in accordance with IFRS of NOK 10.1 billion, including gains from divestments. "In the second quarter, Statoil delivered encouraging operational performance with good production growth and high regularity, whilst continuing to reduce cost. Our financial results were characterised by gains from divestments and lower prices.

Offshore Prospects for 2016: Playing the Waiting Game?

Photo: Douglas-Westwood

This year, the offshore oil and gas industry has had to come to terms with the worst downturn for more than a decade. With commodity prices plummeting to an 11-year low in December, market research and consulting firm Douglas-Westwood (DW) reflects on the year gone by and considers the outlook for the year to come. Offshore rig markets still have a lot to digest before recovery. Rig dayrates have plummeted as a function of significant oversupply. Many of these rigs were ordered in the previous up-cycle, but have only recently entered the fleet at a time when the appetite to drill is poor.

Gas Prices Help Offset Statoil's Output Drop

Valemon sail away (Photo: Ben Weller AP/Statoil)

Statoil's second quarter 2014 net operating income was NOK 32 billion, a decrease of NOK 2.3 billion compared to the second quarter of 2013. Adjusted earnings were NOK 32.3 billion. “Statoil delivered solid operational performance in the quarter, with continued high production regularity on the Norwegian continental shelf and project execution according to plan. We have deferred gas production to enhance value, but remain on track for delivering on our production guiding for 2014. "Our quarterly earnings were impacted by divestments, seasonal effects and lower gas prices.

Statoil's 2Q 2014 Results

President and CEO Helge Lund

Statoil's second quarter 2014 net operating income was NOK 32.0 billion, a decrease of NOK 2.3 billion compared to the second quarter of 2013. Adjusted earnings were NOK 32.3 billion. “Statoil delivered solid operational performance in the quarter, with continued high production regularity on the Norwegian continental shelf and project execution according to plan. We have deferred gas production to enhance value, but remain on track for delivering on our production guiding for 2014. Our quarterly earnings were impacted by divestments, seasonal effects and lower gas prices.

Maritime Reporter Magazine Cover Apr 2018 - Offshore Energy Annual

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