WHAT'S INSIDE
Transcript of WHAT'S INSIDE
WHAT’S INSIDE
• The news from OTC, 1-7
• Warmth comes to UK scene, 8
• Access denied, 9
• No FEED frenzy, 11
IT’S ALL ABOUT PUMPS!
vol. 31 - no. 4 15 May 2014
From OTC-2014, Houston: When the term ‘subsea processing’ fi rst became part of the common parlance as an umbrella term, the focus was expected to be on seabed separation with the other elements - boosting, gas compression and raw water injection - trailing behind.
That idea now seems well in the past. The emphasis has fi rmly shifted towards rotating machinery, both on the seabed and in the well.
The new Subsea Production Alliance, aka Baker Hughes and Aker Solutions working together (SEN, 31/3), is talking, like their rival OneSubsea, about offering ‘reservoir development services’ - others call them ‘integrated solutions’ - to get the most oil out of the ground.
The focus, at least according to what SEN heard at this show, is on improved and new boosting systems including what is now known as ‘dual boosting’, ie seabed and downhole pumping working in parallel.
Live forever!
BH told SEN here that it has been working for some time on improving the reliability of its Centrilift brand electric submersible pumps (esps). Its through-tubing design is aiming at a run-life of 10 years - a major advance from the 90 days of old. A big element as well will be a rigless intervention system. Statoil (30/18) is at least one operator who is keenly interested in such a concept.
(NB: Last week BH reported that its seabed installed esp, supplied to Petrobras for its Cascade fi eld in the Gulf of Mexico came into operation. This is an example of how an esp can be deployed in a way that intervention would be rigless. Petrobras has used this confi guration in home waters as well.)
The other half of the SPA ‘dual’ system will be a seabed multiphase pump which AkerSol has been working on for two and half years or at least as long as the original tender for Total’s Moho Nord project (31/23) in the Moho Nord project (31/23) in the Moho Nord
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SUBSEA ENGINEERING NEWS VOL 31 NO 4 15 MAY 2014
Congo. The design is called a ‘semi-axial’
hybrid pump - to skirt around known possible
patent issues - and a JIP which has led the
development has been supported by
ConocoPhillips, ExxonMobil and Total.
SPA, though, is not the only one working on
pumps. OneSubsea, the market leader in
seabed pumping based on the Framo
Engineering legacy designs, has an R&D war
chest of $100mn with some of it destined for
work on pumps and compressors.
It also has at least one eye on the esp market
- reliability remains an issue - possib ly in
combination with a seabed mpp, but is also
looking at a design for an esp-friendly tree.
This is what a horizontal tree - originally from
the Cameron camp - was meant to be, but
obviously there remain design issues to
address.
There will also be work to increase the power
of both the Hi-Boost pump and its wet gas
compressor,
one of which is being supplied to Statoil for its
Gullfaks South enhancement. The latter unit
is 5MW and the aim is to slowly increase the
power to 6MW, then 8MW and eventually
10MW.
These are the big players, but there are
others as well. US-based Artificial Lift Co has
just deployed one of its rigless Advantage esp
systems in a platform well in the Congo for
Total. Its experience to date has not been
subsea, but it told SEN this week that it too is
looking at a rigless version for subsea wells.
LOOK IT UP: INDUSTRY IS AWASH WITH DATA
From OTC-2014: Has there ever been a better
time than now to carry out a study on subsea,
R&D or some other part of the offshore and
deepwater landscape?
Obviously not as companies and organisations
around the globe are pumping out information
faster than it can be read. It is just like the
data from subsea fields - there might be just
too much to digest.
DNV GL, that ‘pac-man’ classification society
which has been swallowing up others - Noble
Denton, Kema and Germanischer Lloyd -
getting larger by the year, has addressed a
number of burning issues in a single report on
safety, technology and trends.
It is not difficult to guess why such a study
might be of interest. The portfolio of subsea
wells and fields grows every year more than
a few with very complex, eg hpht, reservoirs,
while there are many ageing fields in need of
monitoring and maintenance. There is also a
growing number of new operators who simply
see subsea as another ‘screwdriver’ in the
development toolbox without understanding
the implications of the operations.
The report covers historical technology trends
and future ones as well, but of greater
significance is the section, albeit small, on
incidents and accidents. In many sectors of
the world, operators are required to report
various types of incidents, ie leaks, damaged
equipment, dropped objects, et al.
Such a report is often made when an event
initially takes place, but without any followup
to determine the full extent of the incident
and what were the total implications. This
has resulted in incomplete knowledge about
such incidents.
Over at the competition, in this case Lloyd’s
Register, has come preliminary results of a
survey on R&D spending with the good news
being that it is due to rise by 10% next year.
What is of note is that even with the current
big emphasis on cost reduction, this area is
only third amongst key issues, trailing
improvements to operational efficiency and
safety which were each mentioned by around
40% of survey respondents.
The full report will be issued in June.
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SUBSEA ENGINEERING NEWS VOL 31 NO 4 15 MAY 2014
OTC SHOW BRIEFS
While cost was not seen as a priority in the LR
survey, it was at the heart of a study by US-
based project analysts IPA.
Neeraj Nandurikar told a networking event
that despite no shortage of development
opportunities operators are facing the ongoing
issue of declining margins even with oil at
$100+/bbl.
He said recent studies revealed the depth of
the project management failures. Having
looked at 150 projects, 70% suffered value
decline with the average being 40% within
two years of sanction with many facing cost
over-funs of 25%. This makes the oil and gas
upstream sector the worst of any industrial
sector studied.
There was some serious ‘consultant speak’
thrown around, but with missed schedules
and cost over-runs, Nandurikar said the
industry’s problem is that ‘it is chasing the
wrong value drivers’ and has failed to change
its business models and organisations even as
it has adopted new technology.
SEN has been coming to OTC for at least two
decades and has always been impressed with
the well-oiled machine that is the OTC
system, albeit one that does little to facilitate
the work of journalists here.
With the biggest ever turnout this year likely
to translate into a big bag of swag for the
SPE, SEN was surprised to learn that OTC
charges $2,000 per company for those
applying for one of its ‘SPOTLIGHT ON
TECHNOLOGY’ awards.
This would seem to favour bigger companies
for whom such a sum would see this as a
good way to get their name up in lights, but
not so good for smaller ones who have
already forked out considerable sums for their
stands and their staff simply to come.
When first asked, an OTC spokesperson said
that the fee ‘covers administrative costs,
including awards, banners, the display, and
other marketing-related expenditures’. It
seems rather a considertable sum considering
that those who do not make the short list do
not get their fees back.
Further probing as to why such a fee is
necessary when OTC is so profitable and gets
the benefit of the publicity from the awards,
SEN was told, ‘The Spotlight program ’s
purpose is to recognize exhibiting companies’
latest technologies and innovations. The fee is
not used to market OTC; it is used to
recognize the Spotlight winners.’ So there.
We still think it was worth asking.
There were a few downhearted voices
a m o n g s t t h e F M C c r o w d h e r e .
Disappointment was apparently over Shell’s
announcement that it would put subsea
compression for the ORMEN LANGE project
(SEN, 31/3) in Norway on the backburner.
The FMC’ers believed they had the revised
system in the bag.
On the upside was the recent big award from
BP for SHAH DENIZ 2 (31/3). As SEN
suspected, it was the requirement for a HIPPS
system on each of the more than 10
manifolds that sent the award to FMC. This
was confirmed by a BP’er ‘who knows’.
One of the good things about going to many
events here - breakfasts, lunches, et al - is
the opportunity to meet interesting people
and hear things that are not often discussed
in public.
SEN had a chat over breakfast with a
gentlemen from SOUTH KOREA who is
working with a government-led initiative to
try to expand the Koreans reach in the
offshore sector.
They are not happy that the success achieved
in shipbuilding, particularly on fpso’s, and
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SUBSEA ENGINEERING NEWS VOL 31 NO 4 15 MAY 2014
fabrication has not translated into other
areas, such as process design. As with most
players in complex markets, the ‘value added’
element should never be under-estimated.
One of the most interesting tender processes
out at the moment is for VERTICAL TREES
for Statoil. It is still in the pre-FEED stage
and tender proper is hopefully due out
towards the end of the year.
This is meant to be for a big bore (7in) tree
never really seen before. There are wells w ith
7in completions - usually for high-pressure
gas often found Down Under - but we do not
think that there have been xmas trees with
7in bores. One of the big reasons operators
want to go back to V-trees is the ability to
pull them without disturbing the completion.
So who might be favoured here? Some
possible clues: Aker Solutions has picked up
two contracts in the last year from Total - for
Moho Nord (30/23) and Kaombo (31/3) in the
Congo and Angola, respectively - based on its
new design vertical tree. Also likely to be in
the running is OneSubsea which is supplying
its 15K monobore vertical tree to Chevron for
the hpht Alder subsea tieback (30/22).
These two companies are also believed to be
in the running for the subsea hardware supply
for the next phase of Reliance/BP’s DG-6
development, offshore India.
It isn’t easy to hide an $8bn project, so Total
gets the thumb’s up for managing to keep the
size of its Angola-based brownfield PBF
initiative under wraps for so long.
It is not that all of the parts of PBF are new -
GiRi, the Girassol expansion exercise is well
known - but there are eight elements to this
plan to make use of the existing infrastructure
there. It was made clear in a presentation
that once the CLOV fpso comes onstream later
this year, Block 17 will be complete as far as
the processing facilities.
Total has had more than 200 personnel
devoted to PBF with some specialists, ie flow
assurance and subsea - which Total admitted
are in short supply - working on more than
one project at a time.
The work has run the gamut from process
debottlenecking (Dalia) to installing seabed
pumps (Rosa) to the addition of more wells
and seabed structures (Dalia/Zinnia).
According to project veep for Angola Pascal
Carrier, the use of a taskforce produced
efficiencies of 30-40% compared with
separate project teams.
There has been an ongoing question around
Houston: does Cobalt International really
want to be an offshore operator? The answer
is, apparently, yes.
SEN understands that it has contracted Doris
Engineering to handle FEED for its CAMEIA
fpso development in Angola. Doris is being
supported, according to what SEN has heard,
by a team of specialists led by inhouse subsea
veteran Gene Hall. Hall ’s subsea pedigree
goes back to his days with Amoco and later
BP which is why Hall is here. A number of
Cobalt executives are ex-BPers.
Assuredly INDONESIA would not want to
appear desperate for investment - it would
only encourage the vultures to circle - but the
numbers speak for themselves.
Oil production is down nearly half (to
0.8mb/d) from its peak with economic and
population growth pushing the demand
forecast to 2mb/d by 2020. Current activity,
onshore and offshore, is to the west of the
country, while the gas-prone areas in deep
waters where the future may lie are off the
east coast.
It may be that the country will need to alter
its regulatory regime to try to bring back the
rigs and increased production. Very tough.
Some bits of info on Brazil: Wood Group
Kenny is understood to have picked up RIGID
PIPELAY design work for Petrobras, while it
is understood that INTECSea has closed its
Brazilian office and shifted people into parent
Worley Parsons premises.
SEN Online Glossary of Terms - click here
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SUBSEA ENGINEERING NEWS VOL 31 NO 4 15 MAY 2014
OTC TECHNOLOGY & BUSINESS
SUBSEA PEOPLE: Always running into lots of
old friends here at this show. Angus Wing,
longtime in the cable side of the business who
has been a fixture at German supplier NSW,
has joined Prysmian’s new Houston-based
SURF division as sales director...This is not
very new, but Des Hatfield is global business
development director with SAS Offshore,
another of those Dutch-based fabricadtion
companies which supplies modules and
equipment for pipelay and offshore
construction vessels.
While OneSubsea has a keen focus on pumps
(See Front Page story), it is looking at other
technology as well. Its robust R&D
programme includes development of an HP
RISER for completion work for the Gulf of
Mexico market and an open-water wireline
WELL INTERVENTION system which likely
originated from Schlumberger.
There is also activ ity on UNIFIED
CONTROLS to more easily accommodate
both production and process equipment.
Work is already underway on a master control
station with action on the subsea control
module to follow.
Just because one hasn’t heard about a piece
of technologyh that does not make it not
interesting. Oceaneering designed and built
a SUBSEA PIG LAUNCHER for BHP Billiton’s
Macedon (SEN, 30/10) subsea-to-beach- gas
development, offshore Western Australia.
Originally developed for commissioning the
20in 90km pipeline to shore, the system is
designed for the 180m location and is
pressure balanced for 5K operations. The
launcher’s cartridge can hand le four
conventional or one ‘intelligent’ pig and is
installed vertically and then swivelled to the
horizontal using an ahc crane.
Oceaneering also supplied the umbilical for
the project which was challenging at 70km
and then had to be linked in the shallows on
the beach using specially designed connectors
and then onto the plant.
Equipment suppliers face technical challenges
all the time, but environmental ones are often
as difficult. The umbilical had to be designed
with a coating that would deter Teredo
worms, known to be fond of nibbling on both
ship’s hulls and cables.
20K PRODUCTION is a big enough story
now that it warranted its own tech session
here, but it was elsewhere that important
words were being spoken. We have heard
from BP on its 20K programme which is
needed to get its more than 10bnbbls of hpht
oil out of the ground. So it was interesting to
hear from someone else, notably Shell.
Bill Henry called 20K production ‘a system
problem’ and even pushed the boundaries of
hp production by mentioning that equipment
might have to cope with up 23Kpsi. Someone
else during the week said that going from 15K
to 20K equipment will be much more difficult
than going from 5K to 15K.
Henry was adamant about one point - ‘keep
technology off the critical path’ - which might
give some inkling of why Shell lost interest or
confidence in subsea gas compression.
And it is high temperature as well. Shell’s
Appomattox prospect (30/17) is believed to
be 400oF or 204oC. This will be an important
development for Shell with the investment
decision expected next year. Production is
expected to be 150Kb/d from reserves of
600mboe and Shell has 80%.
It will be followed later next year or maybe in
2016 by Vito (31/1) which is due to produce
100,000b/d from 300mboe. Shell has 51%.
The next big SUBSEA XMAS TREE order is
going to - drumroll, please - BOMCO. Who?
You may well ask.
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SUBSEA ENGINEERING NEWS VOL 31 NO 4 15 MAY 2014
If one had popped around the CNPC stand -
that is the Chinese National Petroleum Corp -
you might have caught site of a graphic of a
10K 5in guidelineless horizontal tree with
choke and subsea control module. It weighs
in at 50t and has access downhole for eight
hydraulic and one 4-pin electric lines.
Assuredly the lawyers and patent folks from
all the big companies will have been taking a
close look.
There were several companies here with very
big stands who mentioned ‘subsea’ in their
marketing bumpf, but who, frankly, we had
never heard of.
One was EATON. They may not be as much
as a mystery to some people. They use
Kevlar to make reinforced hose which are
then included in IWOCS umbilicals. They are
limited by their facility to no longer than 5km
which sounds like a pretty long IWOCS.
The other is ACCUDYNE. If it sounds like a
made up name, spot on. It is a mini-group
owned by venture capitalists - in fact, the
biggest one, Carlyle - and consists of a
number of companies formerly owned by
armaments group United Technology Corp.
One of the companies, Milton Roy, makes
chemical metering pumps (Primeroyal X)
which are meant for subsea wells.
Usually we don’t take much notice of awards,
but SBM Offshore’s VERY HIGH PRESSURE
SWIVEL which picked up a ‘Spotlight’ gong
caught our eye.
This turret element boosts the fluid injection
ability - water or gas - of a floater from
520bar up to 830bar in a 12in fluid path. This
will be essential in areas with hp reservoirs
such as the Lower Tertiary portion of the Gulf
of Mexico.
The VHP has already been subjected to five
years of simulated use in North Sea
conditions. A lower pressure version -
between 520 and 830bar - has already been
bid for an upcoming West Africa project.
GE Oil & Gas has a new 20KPSI BOP which
can benefit from its monitoring and
preventive maintenance software dubbed
SeaLytics...Wild Well Control is working with
training specialist Check-6 to develop a new
generation of WELL CONTROL educational
programmes...Wood Group Kenny and ITF
have launched SURF IM NETWORK to
identify failure modes and technology needs
in the areas o f mon ito r ing and
inspection...Applus RTD has brought out a
rov-deployed DEEPWATER INSPECTION
TOOL for non-piggable pipelines.
In the week before the show, offshore
contracting newcomer CEONA revealed the
pipelay system for its fleet leader, the
newbuild Ceona Amazon.
There has long been s-lay systems followed
later by j-lay and now, Vibor Paravic, veep for
technology, presented the g-lay system for
the new ship. Designed to avoid patent
issues, it makes use of pipe feeding from the
below-deck firing line over a stern wheel and
then across 120m to another wheel on the top
of the lay tower.
It was developed, Paravic told the SUT lunch
gathering, to meet 80% of the market needs,
ie to handle pipe up to 16in. It is a very large
unit (200m by 32m), based on a Noble Corp
drillship hull.
As some operators do, Ceona froze the design
at an early stage (beginning of 2013), well
before the keel was laid, to avoid the
temptation for changes. The only alterations
could be hull-strengthening if it were decided
to upgrade the main lifting capacity from two
400t to 600t cranes.
Questions were asked about fatigue on the
pipe has it free hangs across 120m. Paravic
said that studies had shown that it is not an
issue, although there is scope to support the
pipe with slings.
And watch out, because an Amazon Mark II,
with possibly bigger capacity craneage, is
being considered.
Systems EngineeringSubsea Production
contact www.clarion.org or SEN for details
14 - 17 October 2014 - Aberdeen11 - 14 November 2014, Houston
SEN Online Glossary of Terms - click here
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SUBSEA ENGINEERING NEWS VOL 31 NO 4 15 MAY 2014
OTC POLICY NEWS
From OTC (BN): Brazil appears to be
responding to concern that stiff local content
rules will slow pre-salt development.
At an OTC breakfast focused on the LIBRA
development (30/22), the head of PPSA, the
new agency overseeing national interest in
pre-salt acreage promised ‘flexibility’.
CEO Oswaldo Pedrosa sa id ultimate
percentages required for locally-supplied
equipment and services will not change - 37%
during exploration, 55% during development
up to 2021 and 59% after 2021.
But he said that operators will be allowed to
fall short early in the process and catch up
later. The issue is the inability, for now, of
Brazilian companies to fulfill demand for
equipment and services.
‘It’s a different vision of flexibility,’ Pedrosa
told attendees. ‘It’s the flexibility to make
proper adjustments in local content... to avoid
stopping fast-track development.’
(From the Editor: PPSA, yet another agency
headed by a former Petrobras employee, is
facing significant organisational challenges.
It is currently overseeing one project, albeit a
large one with reserves of up to 12bnbbls. It
knows that it needs experienced personnel to
oversee projects, both economically and
technically, but where will they come from?
And what happens when the projects
multiply? Libra alone could have up to 15
production units at its peak in 2022.)
From OTC (BN): While skeptics abound,
MEXICAN ENERGY REFORM appears to be
moving forward. Secondary legislation has
been filed to flesh out constitutional reforms
adopted in December.
Pemex and Mexican officials were all over OTC
courting foreign investors and international oil
companies. At breakfasts, receptions and
other presentations, OTC attendees were
encouraged to see Mexico as a major
deepwater opportunity.
At one event, Guillermo Garcia Alcocer,
director of E&P for the energy secretariat
(Sener), said a way had been found around a
key sticking point: companies’ need to book
reserves versus Mexico’s constitutional
requirement that the state owns all oil and
gas. The solution: Let companies book
‘expected benefits’ from E&P.
Pemex’s new chief procurement officer said
the state company’s purchasing system is
being modernised, while acknowledging he is
struggling to centralise an extremely
decentralised system.
George Baker, a Mexico watcher, said it
appeared that Pemex was trying to position
itself as a middle man, with tacit government
approval. That goes against the perceived
ideal scenario: IOCs leasing directly from the
government, independent of Pemex.
But just a few days after OTC, Chevron said it
was willing to partner Pemex to develop
onshore and offshore tracts. The word came
from Ali Moshiri, head of Africa and Latin
America at a conference in Mexico City.
From Houston (BN): NEWFOUNDLAND-
LABRADOR officials here basked in the glory
of Statoil’s Flemish Pass find repeatedly
touted as ‘largest in the world last year.’
They released a new environmental
assessment of potential in the Gulf of St
Lawrence. The document warned of possible
operational restrictions due to fish, birds and
unexploded ordinance from World War II.
This list of concerns was not enough for the
Sierra Club, which blasted provincial officials
as ‘irresponsible’ and ‘not capable of being a
truly arms-length independent regulator.’
Not to be outdone by N-L’s recent success,
the Nova Scotia offshore board called for bids
on four parcels on the Scotian Slope in depths
down to 4,100m.
The news follows a recent underwhelming
estimate of potential gas on the Scotian Shelf.
The report estimated 14% less gas than the
last update in 2000. BP and Shell have each
committed to spend $1bn by 2018 to w in
exploration rights off Nova Scotia. Both
companies are now doing seismic in the area.
SEN Online Glossary of Terms - click here
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SUBSEA ENGINEERING NEWS VOL 31 NO 4 15 MAY 2014
PROJECT UPDATES
UK DEVELOPMENT ACTION BEGINS TO WARM UP
From the North Sea (NT): After more than
four months in which no new field
developments emerged from the UK,
environmental statements have recently been
issued for three projects, of which the most
interesting is Antrim’s Fyne (SEN, 30/23).
A year after abandoning the plan based on
Teekay’s Hummingbird Spirit circular fpso due
to rapidly escalating costs, Antrim now aims
to produce the heavy-oil field (21/28a) with a
self-installing floating tower ( SIFT).
The SIFT will have a hull consisting of eight
circular cells which will provide 100,000bbl
storage. This is an untried concept in the
North Sea. According to the environmental
statement, only one such facility exists, on
BPZ’s Corvina field off Peru.
But although the SIFT is floated into position,
once there it is attached to a foundation
template on the seabed and becomes a fixed
platform, which means that the wells can be
completed on the topsides.
Better solution
The hull will be 100m long, providing ample
clearance above the sea surface at Fyne’s
88m location. Working with its new partners
Enegi Oil and ABTechnology, Antrim first
looked at a production buoy, but found the
SIFT better suited to the field requirements.
The topsides will have production capacity of
15,000b/d and, despite having processing
capacity, will be normally unmanned. Antrim
plans one maintenance visit a month.
There will be two esp-supported producers
and one water injector to be drilled by a
jackup. The Fyne crude is rated 25ºAPI. All
parts of the platform – topsides, hull and
foundation structure – will be built in a North
Sea yard, the ES says.
A development plan is due for submission by
the end of August – the previous deadline was
last January – and start-up is set for late
2015 to early 2016, making this a pretty
‘fast-track’ development. Production is
expected to continue for seven years.
The plan must be accompanied by satisfactory
evidence of project financing, Antrim says.
Not surprising as the Canadian company
remains in a parlous financial state. Its latest
financial report acknowledges questions about
its ability to continue as a going concern.
However, part of its deal with Enegi and ABT
is that they will carry it for all costs incurred
up to DECC approval, at which point the
partners will gain a 50% stake in the project.
Gas to burn
Apache has detailed plans for the Aviat gas
find (30/16) in 22/7a, which it will use as fuel
at Forties. At a time when Forties’ associated
gas production is in decline, this will help to
minim ise the use of diesel until 2020.
Two subsea production wells will be drilled in
91m by jackup Rowan Gorilla VII and tied into
a manifold. Gas will be delivered to Forties
Alpha by a 23km 8in pipeline.
Drilling will start in Q3 2015, subsea
construction and pipelay are scheduled for
late 2015 and early 2016 and first gas is due
in Q2 2016. Production is expected to
continue until 2031. Detailed design is in the
hands OF JP Kenny on the subsea side and
Petrofac for the topsides modifications.
Finally EnQuest is planning to develop Ythan,
a 1982 oil discovery in 211/18a lying
southeast of the Don fields in the northern
North Sea.
Due to uncertainties over the volume of oil, it
plans a phased approach, starting with one
subsea producer, to be followed by one water
injector, and if all goes well, a second
producer and injector.
The wells will be drilled from the location of
the Don SW production and injection drill
centres and tied into the existing manifolds
with jumpers. The producer(s) will be gas-
lifted. The manifolds are tied back to the
Northern Producer semi.
First oil is expected in late 2015 and
production could continue for nine years.
SEN Online Glossary of Terms - click here
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SUBSEA ENGINEERING NEWS VOL 31 NO 4 15 MAY 2014
SMALLCO’S BATTLE GIANTS FOR INFRASTRUCTURE ACCESS
From the North Sea (NT): The call in the
Wood report (SEN, 30/17) for easier access to
infrastructure has been endorsed by Serica
Energy as it continues to try to reach a deal
with BG on tying in the Columbus gas-
condensate field (30/5) in the Central North
Sea back to the Lomond platform.
When BG informed Serica early last year that
it had cancelled plans to install a bridge-
linked platform at Lomond, which had been
intended to receive production from both
Columbus and Dana’s Arran field (30/2),
Serica was optimistic that it could instead
negotiate a direct tieback to the existing
Lomond A platform, maintaining its schedule
of starting production in mid-to-late 2015.
More than a year later, it is still trying to
negotiate terms.
‘The fact…that we have still not been able to
reach agreement with the...companies who
operate the platform and...pipeline...has sent
a strong message to the UK government that
regulatory and oversight processes have got
to be strengthened if the North Sea's potential
is going to be fully exploited,’ said chairman
Tony Craven Walker in the annual report.
‘We welcome and fully support the findings of
the Wood Report…preventing [smaller]
co mpan ies from a ccessin g exist in g
infrastructure damages investor confidence,
prevents new, emerging companies from
flourishing, holds back entrepreneurial and
technical expertise and, ultimately, results in
a loss to the nation of the long term value of
its reserves...’
Ironically BG is also a partner (27.5%) in the
hpht field’s 1.9bcm and 4.5mmbbl of
condensate. A direct tieback to Lomond A,
less than 8km away, is the preferred technical
solution, feasibility has been established and
the capital expenditure is appropriate for this
size of development, Serica says.
However, the company has begun work on
alternative offtake routes. By grabbing pole
position for a direct tieback to Lomond, Serica
appeared to have left Arran out in the cold,
and indeed there has been no indication from
Dana of alternative plans for its field.
Meanwhile DECC has extended for two years
the Serica-operated licence covering the
major part of Columbus in 23/16f. Serica also
hopes before long to see drilling on two hpht
prospects in nearby 22/19c, following a deal
for Eni to farm in and become operator.
Ithaca’s decision to offload liquids from the
Greater Stella Area (31/2) also in the Central
North Sea, similarly came in the wake of a
failure to agree terms for using existing third-
party infrastructure.
In this case, it was the Graben Area Export
Line (GAEL) which feeds into the Forties
trunkline, both operated by BP. According to
the environmental statement, Ithaca planned
to access GAEL through a 31km pipeline.
Instead Teekay will now lift the oil.
STATOIL TIDIES UP AT THE END OF BARENTS CAMPAIGN
From the North Sea (NT): Statoil has finished
its exploration campaign in the Johan
Castberg (SEN, 31/2) area of the Barents Sea
with a discovery at the Drivis prospect.
The wildcat (7220/7-3S), drilled by the semi
West Hercules in 345m, found separate oil
and gas columns, but reserves are mostly oil
– 42-54mmbbl versus 1.4bcm.
‘We are certainly glad to have an oil discovery
in Drivis,’ said Irene Rummelhoff, SVP for
exploration on the Norwegian continental
shelf. ‘However, the...programme as a whole
has not delivered on volume expectations.
Out of the five wells drilled only two have
resulted in oil discoveries.’
The other find was Skavl (20-50mmbbls).
While small in the context of a frontier area,
both will presumably be satellites worth tying
back to Castberg, which contains a reserves
base of 400-600mboe. Having spent a year
working on this campaign, West Hercules now
goes off to drill for Statoil in the Faroes.
A subsea tieback could be a possibility for
Statoil’s Valemon North find, where reserves
are estimated at 19-76mboe, comprising oil,
condensate, gas and, in one area, unidentified
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SUBSEA ENGINEERING NEWS VOL 31 NO 4 15 MAY 2014
PROJECT BRIEFS
hydrocarbons. The well (34/10-54S) and a
sidetrack, were drilled by the semi Transocean
Leader in 140m.
A 10km tieback to the hpht Valemon platform,
due to onstream later this year, will be
evaluated. Valemon North consists of a
complex and fragmented reservoir with
varying pressures and high temperature.
Statoil has also made a small discovery in the
Fram area of the North Sea, where F-West
exploration well (35/11-17) found 6-19mboe.
The well, drilled by the semi Songa Trym in
357m, lies about 1km south of the Fram field,
and is a candidate for tieback to the Fram
subsea facilities.
In the Norwegian Sea, Wintershall has
discovered 6-25mboe with Solberg well
6407/1-7, drilled by the semi Borgland
Dolphin in 280m.
The well was appraising the Rodriguez
discovery (29/22), 5km to the southwest,
where reserves are estimated at 20-125mboe.
They may be developed through Maria, some
11km away, where Wintershall is preparing to
seek development approval.
Elsewhere in the Norwegian Sea, VNG’s Pil
discovery has turned out to be better even
than Rocksource expected when it broke early
news in March (31/1).
Well 6406/12-3S, drilled by the semi
Transocean Arctic in 324m, flowed 6,700b/d
in a production test and reserves are
estimated at 50-170mmboe.
An appraisal sidetrack is already under way
and a further sidetrack will be drilled into the
neighbouring Bue prospect.
This is VNG’s first major discovery as an
operator in Norway, but development could
pose some headaches as Pil lies in a remote
area some 35km southwest of Njord (30/17)
where decisions have yet to be made about
modified or facilities.
From Australia (RW): The $19bn ExxonMobil
PNG-LNG project (29/10) in Papua New
Guinea has come onstream ahead of time.
Production from the first train will increase
over coming weeks and the first cargo is
expected to be shipped from the Port Moresby
plant to Asian markets before mid-year. Work
on the second LNG train is progressing and
will be brought on towards the end of May.
The project, supplied by gas from fields in the
PNG Southern Highlands, is expected to
handle 250bcm of gas during its estimated
30-year operating life. The gas is being piped
from fields to the coast near Kerema and sent
on via a subsea pipeline in the Gulf of Papua
to the LNG plant near Port Moresby.
Saipem has secured over $2bn in contracts
related to two major gas developments that
will feed Europe. It has secured the $1.8bn
offshore construction and SURF work for BP’s
SHAH DENIZ 2 project (31/3). The major
portion is the installation of 360km of
pipelines and the jackets and topsides plus all
of the subsea production system and
associated structures.
The scope includes upgrades to three Caspian
Sea construction vessels which will be used
for the work programme - the pipelay barge
Israfil Huseinov, the dsv Tofiq Ismailov the
and derrick barge Azerbaijan.
(Also on SD2, Siemens will provide the power
heating package for the direct electric heating
system for the pipeline network.)
The Italian contractor also picked up the
i400mn contract for the second line of the
SOUTH STREAM pipeline system (31/3)
across the Black Sea. The contract covers all
elements of the job including 930km of
pipelay, cable crossing, onshore pull-ins and
equipment logistics.
Providing thevital connection
Custom EngineeredSubsea Umbilicalsand Power Cables
www.jdrcables.com
SEN Online Glossary of Terms - click here
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SUBSEA ENGINEERING NEWS VOL 31 NO 4 15 MAY 2014
FLOATER NEWS
Technip will handle subsea construction for
Marathon Norge’s ALVHEIM field extension
project (29/16)...Subsea 7 has secured a
three-year $160mn extension of its light
construction and IRM deal with BP in the
GULF OF MEXICO including the provision of
two vessels...SERIMAX has secured a frame
agreement with EMAS AMC to provide welding
services for the installation contractors
worldwide spoolbase network...Airborne Oil &
Gas has won its first ever HIGH PRESSURE
JUMPER contract from a North Sea major for
an upcoming hpht development.
From Houston (BN): Stone Energy announced
finding 84m net oil pay in three strata at its
CARDONA SOUTH well in Mississippi Canyon
29 in the Gulf of Mexico.
The find extends the productive zone of the
discovery well to an adjacent fault block. The
company plans to flow Cardona (30/24) to the
S tone -oper a t ed P o m p a no pla t form .
Production is due to start early next year.
With the Amethyst and Tomcat discoveries in
February, the company said 2014 is off to a
‘great start.’ Stone holds 65.4% and Hunt
owns the rest.
From Houston (BN): Fresh off stealing the
show at Central Gulf of Mexico Lease Sale 231
in March, FREEPORT-MCMORAN paid
$1.4bn for Apache’s interest in the Anadarko-
led Lucius (30/18) and Heidelberg (30/16)
spar developments along with 11 other
Apache GoM leases.
F-M is focusing on the deepwater GoM, having
acquired Plains Exploration last year. It will
finance the Apache deal with proceeds from
sale of its Eagle Ford assets to Encana.
Apache, meanwhile, appeared to be taking a
page from the F-M playbook, saying it would
concentrate on subsa l t and other
opportunities in water depths less than 305m
which Apache called ‘relatively untested.’
F-M is famous for testing an ultradeep
prospect in shallow GoM waters - Davy Jones
at South Marsh Island 230, a $1bn effort that
has yet to produce.
Lucius (Keathley Canyon 874-5, 918-9) is set
to start production later this year with
Heidelberg (Green Canyon 859, 903-4 and
948) in 2016. F-M’s share of Lucius - part
from Plains and part from Apache - rises to
35% plus 12.5% of Heidelberg .
BONAPARTE FEED-ING FRENZY REMAINS ON HOLD
From Australia (RW): The GDF Suez-operated
Bonaparte (SEN, 30/5) floating LNG project
has missed another of its deadlines set earlier
in the development planning.
When the Timor Sea FLNG project received
Australian government environm enta l
approval in 2012, GDF Suez said that FEED
studies would begin in 2013. In September
last year GDF Suez advised that FEED would
start during the first quarter of 2014. That
date is now ‘in 2014’. No reason has been
given for the delay, but the project remains in
pre-FEED phase at the moment.
Bonaparte FLNG general manager Jean-
Francois Letellier says the final investment
decision is still scheduled for 2015 enabling
the project to be brought onstream in 2019.
Previously GDF Suez has said that the FEED
contract is a contest between the
KBR/Hyundai Heavy Industries consortium
and a group made up of Technip and Daewoo
Shipbuilding & Marine Engineering.
Wood Group Kenny won the pre-FEED subsea
concept definition study. Tenders for
geo techn i ca l and g eoph ys ica l s i t e
investigation closed this month.
The Bonaparte FLNG project will be supplied
with gas from the Petrel-Tern-Frigate fields
that lie in the central Bonaparte Gulf
straddling the offshore boundary between
Western Australia and the Northern Territory
about 250km west of Darwin.
The FLNG proposal is for a vessel 400m long
and 70m wide capable of producing 2.4mt/a
of LNG.
GDF Suez has 60% interest in the project with
Santos holding the balance.
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SUBSEA ENGINEERING NEWS VOL 31 NO 4 15 MAY 2014
FLOATER BRIEFS
INPEX READIES RIG FOR ICHTHYS DEVELOPMENT DRILLING
From Australia (RW): Inpex is upgrading the
the semi Ensco 5006 in readiness for its
development drilling programme at the
Ichthys (SEN, 30/24) gas-condensate
development due to begin in December.
The rig was built in 1998-99 and has been
taken to the Keppel FELS shipyard in
Singapore for the work that includes an
overhaul and enlargement of the existing
accommodation facilities originally designed
for up to 120 people.
In addition there will be modifications to the
deck and increased capacity in the lifting
equipment to enable safe and efficient
handling of the project’s vertical xmas trees.
The increased accommodation means
upgrades to lifeboats and changes to the
helideck and aircraft refuelling facilities to
handle the larger helicopters that will be used
for transportation.
The rig is likely to be on station at the field for
several years drilling the first 20 development
wells. It is envisaged that eventually there
will be 50 wells drilled during the expected
40-year life of the field which lies 200km off
the coast of Western Australia.
Also, the Nextgen group of Australia has won
a A$100mn contract to provide and operate a
subsea optical fibre cable system to be used
by both Ichthys and Shell’s Prelude (30/18)
floating LNG project in the Browse Basin.
The fibre optic network, to be built by telecom
company Alcatel-Lucent, will stretch 2,000km
from Darwin in the Northern Territory to Port
Hedland on the Pilbara coast of Western
Australia. It will provide each project with
high-speed data and voice communication
services for the life of the operations.
Ichthys and Prelude projects will connect to
Nextgen’s infrastructure in WA including the
Shenton Park data centre in Perth, which was
opened in March this year. Nextgen says
Shell and Inpex will contribute to the
construction of the cable system.
From the North Sea (NT): If Eni is to achieve
start-up on the GOLIAT field (SEN, 31/1) in
the Norwegian Barents Sea by the end of this
year, which remains its official position, it will
have to take delivery of the Sevan circular
fpso - under construction by Hyundai in Korea
- very soon.
According to comments made by the company
during the recent presentation of its Q1
results and reported in the Norwegian press,
it has sailing windows arranged in either June
or next January.
If it sails in June – the fpso is due to be
transported to the Barents by the newbuild
Dockwise Vanguard heavy-lift vessel – it will
arrive in October with some commissioning
work still outstanding which will require flotel
support. If it sails in January, it will be in a
properly commissioned state, but will have
missed the start-up schedule.
The Petroleum Safety Authority Norway has
made it clear that it prefers commissioning to
be done at the quayside. The authority
recently completed an inspection which
identified 10 areas where improved work is
required to comply with regulations.
From Aberdeen (IF): Dana Petroleum
continues to move ahead with its WESTERN
ISLES fpso project (30/20) in the northern
North Sea, which is expected to come on
stream late next year.
The operator said the first production well has
now been successfully completed and flow
tested and a further three wells have been
drilled and cased to surface casing depth. All
four subsea xmas trees have also been
installed. The work is being undertaken by
Diamond Offshore’s semi Ocean Nomad.
Follow us beyond the horizon...Follow us beyond the horizon...
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SUBSEA ENGINEERING NEWS VOL 31 NO 4 15 MAY 2014
Western Isles is a £1bn investment and peak
production is expected to be 40,000boe/d.
The fields have reserves put at 100mboe with
45mboe economically recoverable.
The scheme (Dana 77% and Cieco 23%) will
develop the Harris and Barra fields 160km
east of Shetland. It involves a subsea
development of at least five producers and
four water injectors tied back to a newbuild
fpso with oil export via shuttle tankers.
From Houston (BN): Petrobras says it has
finished the last of the exploratory wells it
committed to drill under the TRANSFER OF
RIGHT agreement governing Santos Basin
pre-salt reserves.
The well found ‘good quality oil (27oAPI) in
carbonate reservoirs of excellent quality, just
below the salt layer.’ Petrobras drilled 16
wells in six assiognment areas and all were
deemed to be successes.
Petrobras says rservoir data confirms at least
5bnboe in place in the Santos pre-salt.
Elswehere, the fpso P-62 has begun
operations on the RONCADOR field (30/12).
The floater in 1,600m is a part of Module 4 at
Roncador and will eventually have 14
producers and 8 water injectors. P-62 has a
processing capacity of 180,000b/d and
6mcm/d. Three other fpso’s are already
installed on the field.
Also Saipem picked up an EPCI SURF contract
for the LULA field (30/17). The deal covers
three gas export pipelines with plets and
freeestanding hybrid risers. The installation
wil l be in 2,200m.
The work will be carried out off Saipem’s
FDS2 deepwater installaiton vessel in the first
half of 2016. Saipem plans to use the new
yard it is building at Guaruja to fabricate the
risers and associated subsea equipment. Final
delivery is scheduled for 3Q 2016.
From Australia (RW): Air Products has signed
a deal with JGC Cor to provide its proprietary
LNG technology and equipment for Petronas’
second FLOATING LNG project (31/3).
PFLNG-2 will produce 1.5mt/a of LNG from
2018, supplied by gas from the Rotan field,
offshore Sabah, Malaysia.
Air Products will supply equipment, including
coil-wound heat exchangers and compressor
expanders from its US facilities. Economiser
cold boxes will be made in Malaysia.
It is the same technology being installed in
PFLNG-1 project now under construction in
South Korea. Air Products’ exchangers were
also chosen by Shell for the Prelude FLNG
project (30/18) off Western Australia.
The floater delay jinx has bitten Ithaca
Energy’s GREATER STELLA AREA (31/2)
development. According to main contractor
Petrofac, sailaway of the upgraded semi
production unit FPF-1 will now not take plaqce
for about a year with first oil scheduled for the
middle of 2015.
The estimated cost of the delay, ie additional
works to be carried out at the Remontowa
shipyard in Poland related to the topside,
have been put at $5-10mn.
BW Offshore has now confirmed its contract
with Premier Oil to provide an fpso for its UK
CATCHER development (31/2). The initial
contract period is seven years with options for
another 11. BW has put a value on the
award, based on a 10-year charter plus opex,
at $2.3bn.
Cott Oil & Gas is looking at a floating LNG
solution for its PANDORA prospect, offshore
Papual New Guinea. The field has estimated
reserves of 23bcm which would support a
1mt/a production. China-based Wison
Offshore & Marine has carried out early stage
conceptual work.
JX Nippon Oil & Gas is to deploy an fpso for
the LAYANG development, offshore Malaysia.
This field will be linked with the nearby
Helang gas field with liquids from Helang
moving by flexible pipe to Layang and gas
transported to the Helang platform. Additonal
gas production is estimated at 3mcm/d and
total liquids from both fields at 7,000b/d.
DOF Subsea has picked up several floater
related contracts in the North Sea. The
Nowegian contractor It will install the
replacement flexible from the DUMBARTON
drill centre to the fpso Global Producer III for
Maersk Oil UK plus installing the turret
mooring system and risers for the fso for
Statoil’s GINA KROGH project.
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SUBSEA ENGINEERING NEWS VOL 31 NO 4 15 MAY 2014
POLICY
CHINA AND VIETNAM BARE TEETH OVER DISPUTED RIG LOCATION
From Australia (RW): China and Vietnam are
at daggers drawn in a dispute over territorial
waters in the South China Sea.
This follows a move by the China National
Offshore Oil Corp to send its $1bn HD-981
semi drilling rig into waters which both sides
have laid claim to as sovereign territory.
The two countries have each lodged a claim
over the region around the Paracel Islands,
called the Xisha Islands by the Chinese.
Vietnamese officials have demanded that
CNOOC remove the rig from the area. The
Vietnamese also claim that China responded
to this demand with brute force reportedly
deploying up to 80 vessels including seven
military ships and aircraft to the region.
Vietnam says that Chinese ships have
deliberately rammed and caused damage to
Vietnamese Military Police vessels and the
country’s fisheries surveillance force.
The Vietnamese objections to what they
regard as an intrusion into its exclusive
economic zone have been reinforced with a
letter from the state oil company
PetroVietnam to the president and CEO of
CNOOC demanding the Chinese immediately
cease the illegal actions and move the rig
from its current location.
China, on the other hand, says the islands are
part of its inherent territory and hence no
dispute exists.
In recent years, China has exacerbated
tensions in the region with other disputed
claims in the South China Sea with the
Philippines, Taiwan, Malaysia and Brunei.
There is also an ongoing separate maritime
dispute with Japan.
DRILLING IS DOWN - AND SO IS INTEREST - IN THE UK SECTOR
From Aberdeen (I): The UK continues to lag
behind Norway in exploration and appraisal
(E&A) wells being drilled. New figures out
from Deloitte show that Norway had 50%
more E&A wells than Britain in Q1 2014.
In the UK, a total of 12 wells were spudded,
down slightly on the first quarter of 2013
when 13 wells were drilled, but a 71%
increase on the final quarter in 2013, during
which there were just seven wells.
Meanwhile, 18 wells were spudded on the
Norwegian Continental Shelf, an increase of
50% compared to the 12 drilled during the
same period in 2013 and a 39% increase
compared to the final quarter of 2013.
Deloitte suggests that drilling in UK waters
will remain low for at least the next year. The
business advisory firm is concerned that tax
changes confirmed in the recent UK budget
could lead to additional costs for operators.
The changes to the way the bareboat
chartering of vessels is taxed will affect
companies operating in British waters who are
leasing rigs and offshore accommodation.
Derek Henderson, senior partner for Deloitte
in Aberdeen, said the tax was a blow for
industry, especially as there had been some
evidence of a slight decline in rig rates during
the first quarter of 2014.
‘The (bareboat) tax...has caused some real
concerns, however. While it doesn’t affect
operators directly, many expect that the cost
wil l be passed on to them and could
discourage drilling.’
He said while there are ‘sound measures’
being brought in to encourage activity, a
concerted effort is needed from government
and industry to restore confidence in the short
term and ensure maximum recovery from the
UK continental shelf in the long term.
Also, the latest UK North Sea licensing round
has seen a drop in both the number of
applications and blocks being sought.
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SUBSEA ENGINEERING NEWS VOL 31 NO 4 15 MAY 2014
BUSINESS
The Department of Energy & Climate Change
said there had been a ‘strong response’ to the
28th round, with 173 requests from industry
for around 370 blocks.
This is well short of the record-breaking 27th
round in 2012, when 224 applications were
submitted for 418 blocks. That was the
largest number of requests since offshore
licensing began in 1964. DECC aims to start
awarding acreage in the autumn.
Fears that the UK's North Sea workforce is
ageing - a situation which could lead to even
more severe skills shortages in the future -
have been dispelled by a new report.
Industry body Oil & Gas UK said the average
age last year was 40.8 years, down from
41.1 in 2012.
Offshore workers in the 24-29 age group
recorded the highest percentage growth of
those travelling offshore at almost 14.7%. It
also emerged that there were nearly 62,000
workers in the North Sea in 2013 - up 8.6%
on the previous year.
There has been, though, a fall in female
employees in the offshore population,
a c cord ing to A li x T h om , O G UK 's
employment/skills issues manager. Thom
said, ‘Women now comprise 3.6% of the total
offshore population, representing a decrease
of almost 0.2% since 2012. ‘
WGPSN TO CUT CONTRACTOR RATES
From Aberdeen (IF): Offshore contractor
Wood Group is to tackle escalating pay rates
in a move expected to be followed by rivals.
The PSN production services division last
week confirmed plans to reduce by 10% rates
paid to onshore contract workers, introducing
the cut from 1 June in response to cost and
resourcing challenges here. More than 1,600
onshore contract workers will be impacted.
Dave Stewart, WGPSN's UK MD said, ‘Over
the last five years, contractors' rates have
risen three times more than staff rates. We
need to control costs for our clients and focus
on increasing our staff ratio.
‘Escalating contractors' rates are driving
industry costs up, which inhibits investment,
growth and long-term sustainability. The
UK...sector's operating costs rose 15.5% last
year to a record $14.8bn.’
Stewart said costs needed to be controlled to
help maximise economic recovery from the
North Sea and safeguard the basin’s future.
‘Companies have an increasing focus on
capital efficiency, and we must seek
opportunities to work more innovatively to
assist our clients with this,’ Stewart said.
WGPSN added it was keen to retain people
and increase its staff ratio in the UK, so there
will be opportunities for contractors to
transfer to WGPSN staff positions.
The business employs around 12,000 people
onshore and offshore in the UK. It has offices
in Aberdeen, Glasgow, Runcorn and Hull.
ROC AND HORIZON PLAN PAN-ASIAN MERGER
From Australia (RW): Roc Oil and Horizon Oil,
both based in Sydney, have proposed the
creation of a significant Asian E&P company.
Calling it an ‘all scrip merger of equals’, the
companies have entered an implementation
deed and will link via a ‘scheme of
arrangement’. Horizon shareholders will
receive 0.724 Roc shares for each Horizon
share held. The ratio is based on the pricing
during a 10-day period ending on 24 April the
last day of trading prior to the announcement.
Following completion of the merger Roc
shareholders will own about 42% of the
merged entity while Horizon shareholders will
have 58%.
This deal will create a company of significant
value with potential for growth. It will have a
16/
BUSINESS BRIEFS
market capitalisation of about $A800mn, net
2P reserves of 37mboe (95% liquids) and net
2C contingent resources of 121mbloe.
The portfolio of the proposed merged entiry
includes assets across Asia, including holdins
in China, Papua New Guinea, Malaysia,
Myanmar, Australia and New Zealand along
with a strong cashflow position and growth
options through appraisal and exploration
prospects in a number of the countries.
The timetable for the merger begins in June
with implementation expected to take place
by the end of August.
The merger proposal has the support of both
boards, although there is some shareholder
disquiet. One fund manager with a 20%
interest in Roc, is seeking an extraordinary
general meeting to change the company’s
constitution so that a shareholder vote can
take place on the merger proposal.
In the week before OTC, AKER SOLUTIONS
which over the years has undergone any
number of structural transformations and
realignments announced that it would split
into two entities.
The ‘new’ AkerSol will consist of two divisons
- Subsea (subsea hardware and umbilicals)
plus Field Designh (engineering and the MMO
businesses). It will be headed up by Brazilian
Luis Araujo which must be the first time that
a major Norwegian company has been led by
a foreigner.
Araujo is currently head of Brazil who took
over that operation in 2011 after a previous
operational problem which saw AkerSol take
a big writeoff on work for Petrobras. He had
previously been with Wellstream, Coflexip,
ABB and FMC in a 30-year oilfield career.
The remaining parts of AkerSol - including
oilfield services, drilling technology and
process- will be shifted into a new entity,
Akastor. It will be led Frank Ove Reite who
has a financial services background which
suggests that a strategy that wil l see th is part
of the business sold off.
The raison d’etre is apparent from the most
recent results, reported the same day as the
reorganisation, with increased revenue,
EBITIDA and margins being led by subsea,
although there was a loss on umbilicals.
Two of the leading offshore drilling
contractors - TransOcean and Noble Corp -
have announced plans to split off parts of
their fleets into new companies.
The former has said it will put eight of its
midwater North Sea semis into a new
operation to be called CALEDONIA
OFFSHORE DRILLLING CO. This is part of
its strategy to divest non-core assets.
The latter is to form PARAGON OFFSHORE
which take control of the majority of its fleet
of standard spec units including 34 jackups,
five drillships, three semis and the former BP
production test ship Seillean which it acquired
in its takeover of Frontier Drilling.
Editor: Steve Sasanow. Correspondents: Ian Forsyth (Aberdeen); Rick Wilkinson (Australia); Bruce Nichols (Houston);
Nick Terdre, John Sheehan (UK ).
SUBSEA ENGINEERING NEW S (ISSN 0266-2205) is published twice monthly by Hart Energy Publishing LLP, Houston
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