Gulf of Mexico is Ground Zero for the Jones Act
A vastly modernized U.S. offshore support fleet awaits the opportunity to perform Jones Act work in the U.S. Gulf of Mexico. Foreign operators, already here, predict disaster if a cabotage rule change takes effect. A change proposed by the US Customs and Border Protection (CBP) in its Customs Bulletin & Decision newsletter promises reversal of a 40-year practice that, until now, allowed the use of non-coastwise-qualified vessels in the transportation of pipeline repair material; anodes; pipeline connectors; wellhead equipment; valves and valve guards; damaged pipelines; platform repair material; and similar cargo from one domestic point to another. The proposed change gave all interested parties until April 18th to make comment, a deadline which has now come and gone.
Cabotage Rules Changes Proposed
On January 18, 2017, the U.S. Customs and Border Protection (CBP) proposed in its Customs Bulletin & Decisions newsletter a significant change to the U.S. cabotage rules. For many years, use of non-coastwise-qualified vessels in the transportation of pipeline repair material; anodes; pipeline connectors; wellhead equipment, valves and valve guards; damaged pipeline; platform repair material; and similar items from a U.S. point to another point within U.S. waters and/or those on the outer continental shelf has been ruled by CBP (and its predecessor U.S. Customs Service) as consistent with U.S.
Singapore’s Survivability
Singapore’s shipyards are looking to recent investments in capacity, design and newly acquired technology to combat order declines after a decades-long offshore buildup. Sembcorp and peer Keppel are making the most of partnerships in FLNG and showing signs they’ll be okay through the downturn, helped by their gas-hungry Australasian backyard and renewed ties with old charterer parties and suppliers. With drilling contractors unable to pay for the offshore rigs they’ve ordered, Singapore’s heavyweight yards have had to defer deliveries and become defacto rig owners.
Kvaerner Secures Letter of Inteny For Kristin Project
the Norwegian shelf. The order, which is to be awarded to Kvaerner Oilfield Products, will be worth in excess of $110 million, and will involve the supply of equipment from Kvaerner companies in the USA, the UK, and Norway. Klepsvik, President of Kvaerner Oilfield Products Group, the specialist subsea subsidiary. The scope for the project includes the delivery of wellheads, valve-trees and subsea production control systems for ten wells. Four, 4-slot wellhead templates are also included. will assemble the wells at its Tranby site outside Oslo, Norway. The templates will be built at Kvaerner's yard in Egersund, Norway, where integration testing of the wellhead equipment will also be undertaken.
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.
