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The document is a July 2011 issue of Offshore Magazine, focusing on world trends and technology in offshore oil and gas operations. It includes updates on the rig market, new rig orders, and the latest jackup designs, along with an interview with Keppel FELS. The publication serves as a resource for continuous news and analysis in the offshore sector.

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0% found this document useful (0 votes)

225 views140 pages

OS 20110701 Jul 2011

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qM

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Houston London Paris Stavanger Aberdeen Singapore Moscow Baku Perth Rio de Janeiro Lagos Luanda

For continuous news & analysis

[Link]

July 2011

World Trends and Technology for Offshore Oil and Gas Operations

Reviewing the
rig market:
• New rig orders
Brazil/Latin
America update
• Latest jackup
designs
• Keppel FELS
interview

Click here
to access
Summer 2011 Energy :
Catalog I DE ap ter
S m s
IN azil p po
Br cku
Ja
&

𰀳𰁊𰁊𰁗𰁌𰁓𰁖𰁉𰀄𰁈𰁖𰁍𰁐𰁐𰁍𰁒𰁋𰀄𰁖𰁉𰁕𰁙𰁍𰁖𰁉𰁗𰀄𰁅𰀄𰁗𰁘𰁖𰁅𰁘𰁉𰁋𰁝𰀐𰀄𰁉𰁗𰁔𰁉𰁇𰁍𰁅𰁐𰁐𰁝𰀄𰁍𰁒𰀄
𰁘𰁓𰁈𰁅𰁝𰂫𰁗𰀄𰁉𰁒𰁚𰁍𰁖𰁓𰁒𰁑𰁉𰁒𰁘𰀄𰁛𰁌𰁉𰁖𰁉𰀄𰁘𰁌𰁉𰀄𰁛𰁖𰁓𰁒𰁋𰀄𰁑𰁓𰁚𰁉𰀄𰁇𰁅𰁒𰀄𰁆𰁉𰀄𰀄
𰁑𰁓𰁖𰁉𰀄𰁇𰁓𰁗𰁘𰁐𰁝𰀄𰁘𰁌𰁅𰁒𰀄𰁉𰁚𰁉𰁖𰀒𰀄𰀄𰀸𰁌𰁅𰁘𰂫𰁗𰀄𰁛𰁌𰁝𰀄𰁘𰁌𰁉𰀄𰁊𰁍𰁖𰁗𰁘𰀄𰁑𰁓𰁚𰁉𰀄𰀄
𰁗𰁌𰁓𰁙𰁐𰁈𰀄𰁆𰁉𰀄𰁘𰁓𰀄𰁐𰁓𰁓𰁏𰀄𰁊𰁓𰁖𰀄𰁅𰀄𰁇𰁓𰁑𰁔𰁅𰁒𰁝𰀄𰁛𰁍𰁘𰁌𰀄𰁛𰁓𰁖𰁐𰁈𰁛𰁍𰁈𰁉𰀄𰀄
𰁇𰁅𰁔𰁅𰁆𰁍𰁐𰁍𰁘𰁝𰀄𰁅𰁒𰁈𰀄𰁉𰁜𰁔𰁉𰁖𰁍𰁉𰁒𰁇𰁉𰀒𰀄𰀄𰀥𰁒𰁈𰀄𰁘𰁌𰁅𰁘𰂫𰁗𰀄𰀸𰁖𰁅𰁒𰁗𰁓𰁇𰁉𰁅𰁒𰀒
𰀸𰁖𰁅𰁒𰁗𰁓𰁇𰁉𰁅𰁒𰀄𰁌𰁅𰁗𰀄𰁑𰁓𰁖𰁉𰀄𰁉𰁜𰁔𰁉𰁖𰁍𰁉𰁒𰁇𰁉𰀄𰁈𰁖𰁍𰁐𰁐𰁍𰁒𰁋𰀄𰁈𰁉𰁉𰁔𰁛𰁅𰁘𰁉𰁖𰀄
𰁅𰁒𰁈𰀄𰁌𰁅𰁖𰁗𰁌𰀑𰁉𰁒𰁚𰁍𰁖𰁓𰁒𰁑𰁉𰁒𰁘𰀄𰁛𰁉𰁐𰁐𰁗𰀄𰁘𰁌𰁅𰁒𰀄𰁅𰁒𰁝𰁓𰁒𰁉𰀒𰀄𰀄𰀻𰁉𰀄𰁅𰁐𰁗𰁓𰀄𰀄
𰁌𰁅𰁚𰁉𰀄𰁘𰁌𰁉𰀄𰁐𰁅𰁖𰁋𰁉𰁗𰁘𰀄𰁅𰁒𰁈𰀄𰁑𰁓𰁗𰁘𰀄𰁈𰁍𰁚𰁉𰁖𰁗𰁉𰀄𰁊𰁐𰁉𰁉𰁘𰀄𰁍𰁒𰀄𰁘𰁌𰁉𰀄𰁛𰁓𰁖𰁐𰁈𰀐𰀄𰀄
𰁗𰁓𰀄𰁛𰁉𰀄𰁇𰁅𰁒𰀄𰁈𰁉𰁐𰁍𰁚𰁉𰁖𰀄𰁉𰁜𰁅𰁇𰁘𰁐𰁝𰀄𰁘𰁌𰁉𰀄𰁗𰁉𰁖𰁚𰁍𰁇𰁉𰀄𰁓𰁙𰁖𰀄𰁇𰁙𰁗𰁘𰁓𰁑𰁉𰁖𰁗𰀄𰀄
𰁒𰁉𰁉𰁈𰀄𰁛𰁌𰁉𰁒𰀄𰁅𰁒𰁈𰀄𰁛𰁌𰁉𰁖𰁉𰀄𰁘𰁌𰁉𰁝𰀄𰁒𰁉𰁉𰁈𰀄𰁍𰁘𰀒𰀄𰀄𰀥𰁒𰁈𰀄𰁛𰁉𰀄𰁓𰁔𰁉𰁖𰁅𰁘𰁉𰀄𰀄
𰁍𰁒𰀄𰁉𰁚𰁉𰁖𰁝𰀄𰁑𰁅𰁎𰁓𰁖𰀄𰁓𰁍𰁐𰀄𰁅𰁒𰁈𰀄𰁋𰁅𰁗𰀄𰁅𰁖𰁉𰁅𰀐𰀄𰁗𰁓𰀄𰁛𰁉𰀄𰁇𰁅𰁒𰀄𰁗𰁅𰁚𰁉𰀄𰁓𰁒𰀄𰀄
𰁑𰁓𰁆𰁍𰁐𰁍𰁞𰁅𰁘𰁍𰁓𰁒𰀄𰁅𰁒𰁈𰀄𰁈𰁉𰁑𰁓𰁆𰁍𰁐𰁍𰁞𰁅𰁘𰁍𰁓𰁒𰀄𰁇𰁓𰁗𰁘𰁗𰀄𰁛𰁓𰁖𰁐𰁈𰁛𰁍𰁈𰁉𰀒
𰀴𰁙𰁘𰀄𰁘𰁌𰁉𰁑𰀄𰁅𰁐𰁐𰀄𰁘𰁓𰁋𰁉𰁘𰁌𰁉𰁖𰀄𰁅𰁒𰁈𰀄𰁝𰁓𰁙𰀄𰁇𰁅𰁒𰀄𰁗𰁉𰁉𰀄𰁛𰁌𰁝𰀄𰁑𰁓𰁖𰁉𰀄
𰁅𰁒𰁈𰀄𰁑𰁓𰁖𰁉𰀄𰁇𰁙𰁗𰁘𰁓𰁑𰁉𰁖𰁗𰀄𰁌𰁅𰁚𰁉𰀄𰁐𰁉𰁅𰁖𰁒𰁉𰁈𰀄𰁘𰁌𰁅𰁘𰀄𰁘𰁌𰁉𰀄𰁖𰁍𰁋𰁌𰁘𰀄𰁑𰁓𰁚𰁉𰀄
𰁍𰁗𰀄𰁊𰁖𰁉𰁕𰁙𰁉𰁒𰁘𰁐𰁝𰀄𰁘𰁌𰁉𰀄𰁉𰁅𰁗𰁍𰁉𰁗𰁘𰀄𰁑𰁓𰁚𰁉𰀒𰀄𰀄𰀸𰁌𰁅𰁘𰂫𰁗𰀄𰁛𰁌𰁝𰀄𰁘𰁌𰁉𰁝𰀄𰁇𰁅𰁐𰁐𰀄
𰀸𰁖𰁅𰁒𰁗𰁓𰁇𰁉𰁅𰁒𰀒𰀄
𰀸𰁖𰁅𰁒𰁗𰁓𰁇𰁉𰁅𰁒𰀞𰀄𰀻𰁉𰂫𰁖𰁉𰀄𰁒𰁉𰁚𰁉𰁖𰀄𰁓𰁙𰁘𰀄𰁓𰁊𰀄𰁓𰁙𰁖𰀄𰁈𰁉𰁔𰁘𰁌𰀒𰂋𰀄𰀄

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International Edition
Volume 71, Number 7
July 2011

CONTENTS
Celebrating Over 50 Years of Trends, Tools, and Technology

DRILLING RIG REPORT

Meeting the need of today’s
rig owners and operators ................... 34
34 BRAZIL & LATIN AMERICA
Latin American countries
opening to outside operators ............. 65
Singapore’s Keppel FELS says that the global With oil reserves second only to the Middle
drilling industry has begun to renew its rig East and also with significant gas reserves,
fleet, with a wave of orders coming in the last Latin America has become a natural focus of
quarter of 2010. More rig building orders are oil and gas exploration in recent years. As the
expected for units with the highest standard countries in this region increasingly turn their
of safety, Aziz Merchant, executive director of attention to their offshore prospects, which
Keppel FELS, says in an exclusive interview range from Brazil’s massive fields to lesser
with Offshore magazine. known areas elsewhere, all are welcoming the
technology, capital, and expertise of foreign
New jackup rigs are more robust ...... 40 companies but under terms and conditions
Several naval architects and marine engineers that vary greatly from country to country.
have introduced new jackup rig designs that
trend toward larger units with deepwater ca- Pemex looks to develop
pabilities, with one design rated for operations deepwater assets ............................... 68
in up to 575 ft (175 m) of water. Other “new” Mexico’s offshore oil and gas production
designs are enhancements and upgrades of comes from five main areas – Campeche Bay,
existing units that aim to meet more demand- Burgos Basin (gas), Golden Lane, Tabasco and
ing criteria from operators, and to comply with Veracruz, all of which lie in the Gulf of Mexico.
requirements for more site assessments and Nearly 30 oil fields are located in Campeche
preloading rules and regulations worldwide. Bay, the largest of which, Cantarell, was dis-
covered in 1976.
Deepwater jackup fleet
experiences modest growth............... 46 Statoil transfers proven

65
The worldwide deepwater jackup fleet, which Norwegian techniques to draw out
includes jackups rated for 350 ft (106 m) of wa- Peregrino’s heavy crude ..................... 73
ter and greater, grew modestly since July 2009 The start-up of the Peregrino heavy oil field in
when Offshore’s last survey was taken. The Brazil’s Campos basin in April marked a major
2011 edition shows 13 additional deepwater milestone in Statoil’s international ambitions.
jackups delivered over the past two years. Peregrino is the company’s largest oper-
ated field outside Norway and the first it has
New rig orders keep on coming ......... 49 brought onstream in Brazil. Development of
Orders for new mobile offshore drilling units Peregrino, which contains 14º API crude, also
(MODUs) are surging. The upswing began benefited from Statoil’s heavy oil expertise.
in October 2010 with orders for a total of five
jackup rigs placed by established drilling Pre-salt plays buoy Brazil’s
contractors. At that point, the price of West offshore development plans............... 76
Texas Intermediate crude was 9% higher than Increasing domestic oil production has been
in June 2010, and was on its way to an almost a long-term goal of the Brazilian government,
20% increase by the end of the year. and recent discoveries of large offshore, pre-
salt oil deposits could transform Brazil into
2011 Worldwide MODU one of the largest oil producers in the world. It
construction/upgrade survey ............. 52 is estimated that Brazil has 12.9 Bbbl of proven
oil reserves, the second-largest in South
America after Venezuela.

Offshore (ISSN 0030-0608) is published 12 times a year, monthly by PennWell, 1421 S. Sheridan Road, Tulsa, OK 74112. Periodicals class postage paid at Tulsa, OK, and additional offices.
Copyright 2011 by PennWell. (Registered in U.S. Patent Trademark Office.) All rights reserved. Permission, however, is granted for libraries and others registered with the Copyright Clearance
Center, Inc. (CCC), 222 Rosewood Drive, Danvers, MA 01923, Phone (508) 750-8400, Fax (508) 750-4744 to photocopy articles for a base fee of $1 per copy of the article plus 35¢ per page.
Payment should be sent directly to the CCC. Requests for bulk orders should be addressed to the Editor. Subscription prices: US $101.00 per year, Canada/Mexico $ 132.00 per year, All other
countries $167.00 per year (Airmail delivery: $234.00). Worldwide digital subscriptions: $101 per year. Single copy sales: US $10.00 per issue, Canada/Mexico $12.00 per issue, All other coun-
tries $14.00 per issue (Airmail delivery: $22.00. Single copy digital sales: $8 worldwide. Return Undeliverable Canadian Addresses to: P.O. Box 122, Niagara Falls, ON L2E 6S4. Back issues are
available upon request. POSTMASTER send form 3579 to Offshore, P.O. Box 3200, Northbrook, IL 60065-3200. To receive this magazine in digital format, go to [Link]/os.

ECLIPSE 2011
Unrivaled Depth and
Breadth for More
Confident Forecasts

ECLIPSE 2011 meets the

rapidly changing demands
of developing today’s reservoirs.
ECLIPSE and Measurable Impact are marks of Schlumberger. © 2011 Schlumberger. 11-IS-0266

In unconventional gas, heavy

oil, fractured carbonates, EOR
schemes, or designing complex
wells—ECLIPSE software gives
you everything you need to
accurately forecast your
reservoir performance.

With ECLIPSE 2011, I’ve got

what it takes.

[Link]/eclipse

Global Expertise
Innovative Technology
Measurable Impact

International Edition Volume 71, Number 7 July 2011

Tactical Technology™ COVER: Recent discoveries of large

offshore pre-salt oil deposits could
in action: transform Brazil into one of the largest
oil producers in the world. It is estimated
SeaLance™ subsea that Brazil has 12.9 Bbbl of proven oil
drilling-with-casing (DwC™) system reserves, the second-largest in South
America after Venezuela. The DSS 38
Gold Star, a semisubmersible drilling
rig built by Keppel FELS, has joined the
Imagine not having to growing number of drilling rigs perform-
ing successfully for Petrobras offshore
drill the interval before
Brazil. Photo courtesy Keppel FELS.
running casing. Imagine
not having to trip drillpipe
and BHAs and worrying about
swab/surge and related hazards.
Imagine turning trouble
zones into comfort
zones. Drilling with casing
puts up a steel shield against GEOLOGY & GEOPHYSICS
the hazards of shallow gas, thief Borehole seismic while drilling can give accurate, high-resoluation data .............. 80
zones, sloughing shales, etc. Even with today’s modern seismic acquisition, processing, and interpretation technology, a geo-
logical prognosis solely derived from surface seismic data carries a high degree of uncertainty
and geological risk.
And the SeaLance DwC
system also provides a more DRILLING & COMPLETION
with Risks and concerns of single-casing riser systems
larger hole diameters and casing versus dual-casing risers........................................................................................... 84
seats set at optimal depths for Single-wall risers are being used in situations where a leak could cause a catastrophic blowout.
The Macondo well incident has recalibrated industry estimates of the consequences that could
the fracture gradient. Shallow
result from a blowout. Some industry-wide regulation is required to ensure that multiple inde-
casing can be set deeper and pendent well control barriers are present at all times in deepwater operations.
cemented, for a stronger well
foundation that enhances the
PRODUCTION OPERATIONS
safety of personnel.
Looming SEMS rules will require new strategies ..................................................... 90
The 2010 Macondo oil spill in the Gulf of Mexico led to a number of investigations, reactions and
In a world where gaining conclusions about the future of the US oil and gas industry, particularly regarding safety stan-
dards. In light of this, the Bureau of Ocean Energy Management Regulations and Enforcement
subsea reservoir access can
(BOEMRE) created new regulations with the aim of enhancing safety standards.
exceed US$100 million, you
could save $30 million
FLOWLINES & PIPELINES
by avoiding downhole trouble
time, tripping time and Improving deepwater pipeline repair capability ....................................................... 94
Since 2004, a joint industry project (JIP) has working to develop the capability to repair 10 to
circulating hours.
24-in. ANSI 1500 pipelines in sea water depths from 1,000 to 10,000 ft.

D E P A R T M E N T S

Online .................................................... 8 Vessels, Rigs, & Surface Systems ...... 26

Visit [Link]/sealance or
contact a Weatherford representative. Comment ............................................. 10 Drilling & Production .......................... 28
Ask about our full range of Tactical Data ..................................................... 12 Geosciences ........................................ 30
Technology that can change the way Global E&P .......................................... 14 Offshore Automation Solutions .......... 32
you look at all of your service needs.
Offshore Europe .................................. 20 Business Briefs ................................. 110
The change
SM Gulf of Mexico ..................................... 22 Advertisers’ Index............................. 115
Subsea Systems ................................. 24 Beyond the Horizon .......................... 116

____________
© 2011 Weatherford. All rights reserved.
Incorporates proprietary and patented Weatherford technology.

Sea Change
Weatherford’s new SeaLance™ drilling-with-casing
(DwC™) system: Subsea drilling will never be the same
© 2011 Weatherford. All rights reserved. Incorporates proprietary and patented Weatherford technology.

No longer do you have to run the risks of tripping drillpipe and BHAs.
The SeaLance system runs casing while drilling to maintain a steel barrier
against trouble zones. Makes your drilling program go about 30 percent
faster to save you some $30 million.*

We call it Tactical Technology™. You’ll call it money in the bank.

Drilling hazard mitigation Contact a Weatherford representative or visit [Link]/sealance.
Drilling ®
™
We have a full range of Tactical Technology that can change the way you
look at all of your service needs.
Evaluation

The change will do you good

Completion

Production

Intervention [Link]

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SENIOR EDITOR, TECHNOLOGY EDITOR,
➤ First Oil: Ghana’s Jubilee
TECHNOLOGY & ECONOMICS SUBSEA & SEISMIC The first oil production milestone was achieved only 41 months after the
Eldon R. Ball Gene Kliewer Jubilee field was discovered, an enviable record for any offshore development,
eldonb@[Link] genek@[Link]
particularly in a frontier deepwater area such as that found off Ghana. Jubilee
EDITOR-EUROPE ASSISTANT EDITOR is the country’s first significant offshore find. Videos courtesy Myriad Global
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jeremyb@[Link] jessicat@[Link] Media ([Link]).
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Josh Troutman
POSTER EDITOR
E. Kurt Albaugh, P.E.
➤ New Subsea Hydrate Remediation Skid
josht@[Link] [Link]@[Link] A new hydrate remediation system from Wright’s Well Control Services
(WWCS) recently cleared a hydrate-blocked pipeline in the Gulf of Mexico
CONTRIBUTING EDITORS (GoM) in 7,200 ft of water.
F. Jay Schempf (Houston)
Nick Terdre (Norway)
Peter Howard Wertheim (Brazil)
➤ Shell’s New FLNG Concept
Gurdip Singh (Singapore) The Royal Dutch Shell board of directors has approved the final investment for the
Prelude floating LNG project offshore Australia. This will be the first such installation.
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Tel: (713) 963-6220 is the world’s deepest offshore oil drilling and production platform. Moored
PRODUCTION MANAGER in 2,450 m (8,000 ft) of water in Alaminos Canyon block 857, the Perdido
Kimberlee Smith ksmith@[Link] development opens up a new frontier in deepwater oil and gas production, and
Tel: (918) 832-9252 • Fax: (918) 831-9415
represents a number of firsts in the offshore oil and gas industry. On the first
AUDIENCE DEVELOPMENT MANAGER anniversary of production from Perdido, Shell’s Bill Townsley, Perdido Venture
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Contact subscriber services for address changes
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Projects, Chevron International Exploration & Production division, will discusss
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OFFSHORE EVENTS integrity level, and independent protection layers.
David Paganie (Houston) davidp@[Link]
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Arctic oil and gas resources represent the next big chapter in offshore devel-
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All Rights reserved
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Printed in the U.S.A. GST No. 126813153 Labrador, presents an overview of practical engineering solutions that will allow
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Mark C. Wilmoth third-party verification; environmental assessments/risk analysis; and ice/ship
interaction. The third speaker is Joe Gagliardi, Arctic Solutions and Technology
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and processing seismic data in Arctic environments.
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ts-o
offsh
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[Link]
htmll

8 Offshore July 2011 • [Link]

We’ve connected our dots to help you

better connect yours.
Perhaps you’ve heard that Harris Corporation is building the largest business focused speciﬁcally
on remote communications — Harris CapRock. If so, you’re probably wondering what that means
for you.

For starters, it means you have access to the world’s most advanced terrestrial, wireless and satellite network
for remote communications. It means you’ll get responsive, reliable communications connecting your
operations anywhere on Earth. It means the most extensive local service and support in the most countries
with teleports on 6 continents, 5 Network Operations Centers, 83 points of presence on a global terrestrial
network and 140 countries served. It means we’re ready to meet all of your communication demands today
and tomorrow.

So how will Harris CapRock better connect your dots?

If you had to pin us down, we’d say “in every way.”

[Link]/energy-om

© 2011 Harris CapRock Communications, Inc. All rights reserved.

VISIT US AT
6th–8th September 2011| Aberdeen | UK
STAND 4A160
COMMENT David Paganie • Houston

ENGINEERING PLASTIC SOLUTIONS

Pre-salt plays buoy Brazil’s

LEADING offshore development plans
Increasing domestic oil production has been a long-term goal of the Brazilian gov-

THE WAY
ernment, and recent discoveries of large offshore, pre-salt oil deposits could transform
Brazil into one of the largest oil producers in the world. It is estimated that Brazil has
12.9 Bbbl of proven oil reserves, the second-largest in South America after Venezuela.
Recent exploration efforts offshore Brazil have yielded massive discoveries of pre-salt
ENGINEERING POLYMER SOLUTIONS oil fields, and the prospects for significant development opportunities have already led
FOR THE OFFSHORE INDUSTRY to a number of new plans, programs, and development activities.
Offshore managing editor Bruce Beaubouef, gives an in-depth report of Brazil’s
pre-salt development plans beginning on page 76.

Statoil brings Peregrino onstream

The start-up of the Peregrino heavy oil field in Brazil’s Campos basin in April marked
a major milestone in Statoil’s international growth plans. Peregrino is the company’s
largest operated field outside Norway and the first it has brought onstream in Brazil.
The field is in about 120 m (393 ft) of water, 85 km (53 mi) from the coast of Rio de
Janeiro state.
It has been developed with two wellhead/drilling platforms about 10 km (6.2 mi)
apart, which send production to an FPSO stationed in-between. Once full production is
achieved, Statoil plans to implement a series of IOR measures, which it uses extensively
Typical applications: on the Norwegian continental shelf.
iPipe-in-Pipe Centralisers Thore E Kristiansen, Statoil senior vice president and head of the South America
and Sub-Saharan Africa region, gives UK-based contributing editor Nick Terdre in-
iROV Components sight into the company’s development plans offshore Brazil. The full report begins on
iPiggy-Back Clamps page 73.
iThruster Nozzles New rig orders surging
iBundle Spacers The influx of orders for new mobile offshore drilling units (MODUs) continues. The
combined effects of higher than expected crude oil prices, operators preferring newer,
iPulley/Sheaves
more efficient drilling units, and some degree of perceived stabilization in the global
iWear-Pads financial markets have propelled 2011 to become a record year in terms of the esti-
iBushes mated total value of MODUs ordered with six months yet to go in the year, according to
Bruce Miller, ODS Petrodata, in a special report for Offshore. The estimated capex for
iRollers newbuild rigs recovered from a low of $2.7 billion in 2009, to $24.7 billion year to date
in 2011, a figure that already exceeds the previous record set in 2007. Miller’s complete
analysis begins on page 49.
Meanwhile, rig owners are actively renewing the older rigs in the fleet to meet new
regulatory requirements and operator demand. Keppel FELS executive director, Aziz
Merchant, gives an overview of the changes in the rig market, with respect to new
technology, construction, and regional demand. The full interview by Singapore-based
contributing editor, Gurdip Singh, begins on page 34.

Hess to host DOT

It is my pleasure to announce that Hess will host this year’s Deep Offshore Tech-
nology Conference & Exhibition, Oct. 11-13, New Orleans, USA. This year marks the
Nylacast Ltd (UK) event’s 30th year of technology exchange and its return to a once-a year schedule, and
t: 0044 (0) 116 276 8558 we are delighted that Hess is the host.
f: 0044 (0) 116 274 1954 The operator brings a unique perspective to the event, given its active participation
e: offshore@[Link] in international deepwater developments. For more information, please visit the confer-
w: [Link] ence website: [Link].

Nylacast LLC (Houston, USA)

t: 001 713 4256344
f: 001 713 7830067
e: offshore@[Link]
w: [Link]

Nylacast South Africa (PTY)

t: 00 2711 3977077 To respond to articles in Offshore, or to offer articles for publication,
f: 00 2711 3977017 contact the editor by email (davidp@[Link]).
e: offshore@[Link]
w: [Link]

Flow assurance testing

that can handle the pressure
ShawCor’s new Subsea Test Facility allows you
The Global Leader to verify the ﬂow assurance of your pipe before
70 facilities in 25 countries installation. Its Simulated Service Vessel is the
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G L O B A L D ATA

Worldwide day rates

Worldwide offshore rig count & utilization rate
Year/Month Minimum Average Maximum
June 2009 – May 2011
Drillship
Contracted fleet utilization Total fleet Contracted Working 2010 June $125,000 $391,011 $592,500
850 100% 2010 July $125,000 $398,169 $592,500
2010 Aug $125,000 $397,588 $592,500
2010 Sept $125,000 $402,732 $659,000
2010 Oct $125,000 $412,483 $659,000
750 90%
2010 Nov $125,000 $404,747 $659,000
2010 Dec $125,000 $409,951 $659,000

Fleet utilization rate

2011 Jan $155,000 $429,481 $659,000
650 80% 2011 Feb $155,000 $436,128 $659,000
No. of rigs

2011 Mar $90,000 $432,590 $659,000

2011April $90,000 $431,696 $659,000
550 70% 2011 May $90,000 $436,270 $703,000
Jackup
2010 June $27,000 $115,346 $398,000
2010 July $25,000 $115,728 $398,000
450 60%
2010 Aug $6,500 $115,292 $335,000
2010 Sept $10,000 $114,948 $335,000
2010 Oct $10,000 $112,620 $335,000
350 50% 2010 Nov $10,000 $111,143 $335,000
Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 2010 Dec $30,000 $110,307 $335,000
Source: ODS-Petrodata Inc. 2011 Jan $32,000 $109,683 $335,000
2011 Feb $32,000 $108,466 $335,000
GoM drilling permits issued 2011 Mar $31,000 $107,617 $335,000
2011April $31,000 $107,131 $335,000
100 2011 May $31,000 $106,834 $335,000
Semi
90
2010 June $47,800 $358,484 $650,000
80 2010 July $47,800 $352,877 $650,000
Drilling permits

70 2010 Aug $47,800 $356,396 $650,000

60 2010 Sept $47,800 $358,434 $650,000
2010 Oct $47,800 $360,430 $650,000
50
2010 Nov $47,800 $361,457 $650,000
40 34 2010 Dec $47,800 $362,976 $650,000
30 2011 Jan $47,800 $363,527 $650,000
22 21
20 17 19 2011 Feb $83,000 $359,880 $665,000
13 15
2011 Mar $83,000 $354,392 $665,000
10
2011 April $83,000 $356,079 $665,000
0 2011 May $83,000 $356,316 $665,000
Nov. Dec. Jan. Feb. Mar. Apr. May
Source: [Link]
Source: BOEMRE

Brazil rig utilization Worldwide rig utilization

120 100
90
100
80

80 70
60
Percent

Percent

60 50
40
40
Drillships 30
Drillships
20 Jackups 20 Jackups
Source: [Link]

Source: [Link]
_____

_____

Semisub
10 Semisub
0
0
May 10

June 10

July 10

Aug 10

Sept 10

Oct 10

Nov 10

Dec 10

Jan 11

Feb 11

Mar 11

Apr 11

May 11

May 10

June 10

July 10

Aug 10

Sept 10

Oct 10

Nov 10

Dec 10

Jan 11

Feb 11

Mar 11

Apr 11

May 11

12 Offshore July 2011 • [Link]

SUBSEA SYSTEMS
TECHNOLOGY WORKS HERE™

Performance Profile
Shell (Pierce Field, North Sea) deploys Solution: Cameron’s
MARS (Multiple Application
Cameron’s MARS™ Scale Squeeze
Re-Injection System) scale
Technology in Multiple Wells
squeeze technology. With
MARS, the equivalent of a USB port on a subsea completion,
Overview: Every player, no matter what size – including super-
operators can “plug and play” scale squeeze applications from
majors such as Shell – has basic, light-well intervention needs
the back of a workboat, using an insert that goes directly into
for chemical intervention technology. This super-major was
the choke. Advantages: Lightweight tie-in to the choke, with
faced with who to turn to for an easy, flexible, cost-efficient
no need for a rig, or for huge displacement of fluids related
solution that offers convenience, combined with minimal
to a flowline. Cheaper. Faster. More flexible. Safer. And, ROV
CAPEX and OPEX. Who better to turn to than Cameron, with
operability/capability. The success of Cameron’s MARS is
field-proven technology since 2008.
evidenced by major operators such as Shell choosing to install it
to optimize production from both new and existing fields.
Challenge: Conventional scale squeeze solutions require tying
into the top of the Christmas tree with a riser attached to a rig
MARS is a key technology that can be used in conjunction
or use of a dedicated flowline. How can operators minimize
with Cameron’s Subsea Processing Systems, which include
CAPEX, OPEX, intervention and maintainability with reliability,
CAMFORCE™ multiphase boosting, separation and other
but without conventional hardware, software and maintenance
enabling technologies for the emerging subsea processing
effort and expenditures?
TC9949

market. Learn more at [Link]/camforce

RAISING PERFORMANCE. TOGETHER™

GLOBAL E&P Jeremy Beckman • London

Report highlights growth ly 2013. The DB50 heavy-lift vessel will then
in ultra-deepwater wells install the module on the existing Hibiscus Gas pipeline
Q
IRAQ
KUWAIT
KUW
UWAIT
UW IRAN
Subsea expenditure worldwide could exceed platform in BG’s North Coast Marine Area Oil pipeline

P u G ul
Ethylene pipeline

rs f
ian
$94 billion over the next five years, according development. The compressor will allow BG Area
Are
ea
n QATAR
to Infield’s latest Subsea Market Report. The to increase gas supplies to its Atlantic LNG North Field
shown
wn

top 10 oil companies will likely account for over trains in Point Fortin, southern Trinidad. SAUDI ARABIA
UAE
OMAN

three-quarters of subsea development costs QATAR

Al-Khalij
Al Khalij
during 2011-15, led by Petrobras and followed West Africa Ras Laffan
Do

line
lph
by BP and Total. Much of the drilling expen- Hess has found oil and gas condensate in in p

ipe
ipe
line
diture will be directed at the established deep- the Paradise prospect offshore Ghana. The

npi
tof
water regions in the GoM, Brazil, Nigeria, and well was drilled in 6,038 ft (1,840 m) of water Halul Island

Qa
Angola, but subsea activity is also on the rise in in the Deepwater Tano/Cape Three Points Total Research Center
Southeast Asia. license, encountering 490 net ft (149 m) of
Infield adds that around 58% of subsea pay over three intervals. Doha Block BC
tree installations are set to occur in water In the West Cape Three Points conces-
depths of over 500 m (1,640 ft), with a sig- sion, Kosmos Energy has proven light oil in
nificant portion in waters 1,500 m (4,921 ft) a previously untried play in thick Cenomian
Messaieed
deep or beyond. Seabed separation is likely reservoir sandstone. The semisubmersible
to become more prevalent as a method of Atwood Hunter drilled the Banda-1 well 9.6
enhancing production, even though the km (5.9 mi) southeast of the Odum field.
technology remains to be fully proven. ••• Qatar offshore block BC (pre-Khuff), operated
Noble Energy is set to extend its acreage by CNOOC.
North America network along the West African transform
Cairn Energy has resumed exploration drill- margin by farming into the AGC Profong Middle East
ing off western Greenland. As in 2010, the com- PSC off Senegal and Guinea Bissau. Noble Total is taking a 25% interest in the block
pany is deploying two rigs – the semisubmers- will take a 30% interest in exchange for fund- BC (pre-Khuff) exploration license offshore
ible Leiv Eirkisson and the drillship Ocean rig ing Rocksource’s costs of the Kora-1 well, Qatar from operator CNOOC. The block
Corovado. Initially they are working on the AT-7 due to spud last month, and further drilling is 130 km (81 mi) from the coast, in water
well in the Atammik block and LF-7 in the Lady in the event of a discovery. After the apprais- depths of 15-35 m (49-115 ft). The partners
Franklin block, respectively 160 and 300 km (99 al program has been approved, Noble would must acquire 2D and 3D surveys and drill at
and 186 mi) offshore the capital Nuuk. Water also become operator of the PSC. least three exploratory wells by 2014.
depths range from 905-989 m (2,969-3,245 ft). To the southeast, AGR Petroleum Ser- •••
Later in the year, Cairn plans further wells in vices has contracted the deepwater drillship RAK Petroleum was due to start its 2012
the Napariaq and Eqqua blocks in the southern Jasper Explorer to work in Hyperdynamics’ offshore drilling program last month. The
Baffin Bay West Disko area. The campaign tar- concession offshore Guinea. The company line-up includes three development wells on
gets potential gross resources of 3.2 Bboe. aims to spud its first exploratory well here the Bukha and West Bukha fields in block 8
••• late in 2011. off Oman, and deepening of the S-5 well on
Pemex has a new offshore gas/conden- Farther south, Canadian Overseas Petro- the Saleh field off Ras Al Khaimah, as a first
sates discovery in the Cordirellas province leum has offered $85 million for Peppercoast step towards a full-field redevelopment.
of the Gulf of Mexico. The deepwater Piklis Petroleum’s 100% interest in block LB-13 •••
1 well, drilled 144 km (89 mi) northwest of off Liberia. Assuming approval from state- Pars Oil and Gas Co. expects to bring on-
Coatzacoalcos, could hold gas reserves of owned company NOCAL, COPL will acquire stream by the winter all 24 wells in its South
400-600 bcf. 2,023 sq km (781 sq mi) of 3D seismic over Pars gas field phases 9 and 10 in the Persian
the block, which also carries an obligation Gulf. National Iranian Oil Co. is considering
Brazil to drill during the current exploration phase. gas exploration in the deeper water Oman
Sete Brasil, a new company working in ••• Sea, between the Hormoz Strait and the me-
partnership with Estaleiro Atlantico Sul Sinopec has won a 12-month extension dian line with Pakistan.
shipyard, will construct seven offshore rigs to the first exploration phase for block 2 in
to service Petrobras’ future ultra-deepwater the Nigeria-Sao Tome & Principe Joint De- Mediterranean Sea
pre-salt drilling commitments. The rigs, due velopment Zone. The company will conduct Malta’s government has agreed to an
to enter service in 2015, will be the first built further geological and geophysical studies 18-month extension for the initial phase of an
in Brazil. Petrobras has also sanctioned a during this period. According to partner offshore production sharing contract with op-
bidding process for construction of up to 21 ERHC Energy, negotiations continue on the erator Mediterranean Oil and Gas (MOG). The
more rigs targeting pre-salt prospects. Leas- exploration programs for blocks 3 and 4. area 4 concession covers 5,700 sq km (2,202 sq
ing and operations contracts will be awarded mi) between Maltese waters and the median
for each of this latest batch. Northern Europe line with Libya, and is surrounded by proven,
LOTOS Petrobaltic seeks partners for its analogous petroleum systems offshore Libya,
Caribbean Sea planned development and exploration cam- Tunisia, and Sicily. Since 2007, MOG has ac-
BG Trinidad & Tobago has contracted paign in the Polish sector of the Baltic Sea. quired and reprocessed new and existing 2D
McDermott International for a 750-ton According to Houston-based brokers Indigo and 3D seismic over the permit, and identified
(680-metric ton) compressor module for the Pool, the package provides near-term pro- potential oil prospects totalling around 5 Bbbl.
Hibiscus field offshore Trinidad. This will duction potential with nearby existing infra- •••
be assembled in Morgan City, Louisiana, structure, and Poland operates a favorable Canadian company MENA Hydrocarbons
ready for load-out and transportation in ear- economic regime. is taking a 55% interest in an offshore devel-

14 Offshore July 2011 • [Link]

Look Mom --
No anchors.

Up to the challenge.

At 6:00 AM the VB-10000 arrives on site to perform the first conventional platform removal
using its newly-commissioned DP3 system. The 1,800 ton topside, complete with vent boom
and platform cranes, was sea-fastened and on its way in before dark. (Story at [Link])

Accepting challenges. Developing strategies. Delivering solutions.

Versabar
The Power of Engineering Delivered

Houston (713) 937-3100 • New Orleans (504) 392-3200 • [Link]

GLOBAL E&P

opment lease, 60 km (37 mi) from Egypt’s minion Petroleum in the offshore Lomu basin. should be under way. And off Sri Lanka, Cairn
north coast. This is part of a larger conces- BG will have a 40% operating interest in blocks India has lined up a drillship for exploration in
sion in which MENA will take a 35% stake. L10A and L10B, with a commitment to acquire its DL 2007-01-001 block in August.
There have been five gas/gas-condensate seismic during the first two years. Dominion
discoveries to date on the lease. gained a 60% operated interest in block L9, Asia/Pacific
••• and has pledged to acquire 5,000 sq m (1,930 PTTEP has discovered more reserves in
Noble Energy has contracted Alliance En- sq mi) of 3D seismic, as well as reprocessing Martaban Gulf block 3, offshore Myanmar.
gineering for detailed engineering and design existing 2D data. The Aung Sinkha-2 well encountered a gas-
for its Tamar platform in the Israeli sector of the ••• bearing formation in a limestone reservoir
Levantine basin. The platform will be stationed Aminex should by now have spudded its – on test the well flowed gas from one zone
in 800 ft (244 m) of water, and will be able to pro- fourth exploration well in the Nyuni PSA off and gas and condensate from another.
cess 1.2 bcf/d of gas. This will be produced via Tanzania. The land rig Caroil-6 was due to drill •••
subsea wells on the Tamar field connected to Nyuni-2 from Nyuni Island in the northeast of Vietsovpetro may install further test sepa-
the platform by 150-km (93-mi) long flowlines. the permit to test a large Neocomian prospect. ration facilities on the Bach Ho central pro-
The platform’s 10,000-ton (9,072-metric ton) Aminex is also in talks over tying the nearby cessing platform complex off southern Viet-
topsides, comprising a four-level deck, will be offshore West Songo Songo gas discovery into nam. These would serve to more accurately
designed for installation in a single lift. a hub based on the Kiliwani North field. measure incoming liquid and gas from the
In Tanzania’s offshore Tanga block, new Ca Ngu Van field in block 9-2, operated by
Caspian Sea operator Afren hopes to start exploration the Hoan Vu Joint Operating Co.
Kazakh companies JSC KMG EP and drilling by year-end. •••
JSC NC KazmunaiGas have signed a memo- Statoil has been offered 40% equity in two
randum concerning joint programs in five Indian sub-continent Indonesian offshore production-sharing con-
blocks offshore Kazakhstan. The agreement Gujarat State Petroleum has commis- tracts. Nido Resources currently operates the
would give JSC KMG EP access to technical sioned a new process platform from Laursen North Makassar and West Papua IV/Halma-
and economic data relating to various oil and & Toubro for a development in the KG basin hera-Kofiau PSCs, but Statoil could become
gas projects in the concessions. offshore eastern India. The contract value is operator of any development projects. Drilling
around $317 million. is planned on both permits later in the year.
East Africa To the east, off Bangladesh, Santos has con- Among the award winners under Indone-
Kenya’s government has awarded produc- tracted the Seadrill jackup Offshore Resolute sia’s second International Bid Round, Eni
tion-sharing contracts to BG Group and Do- for a program of three wells, the first of which gained 100% of the Arguni 1 block in the Bin-

𰁒𰁁𰁐𰁉𰁄𰀭𰁔𰁏𰁒𰁃𰀠𰁆𰁉𰁔𰁓𰀠𰁁𰁌𰁌𰀠𰁆𰁌𰁁𰁎𰁇𰁅𰁓𰁂𰁖𰁙𰁚𰀕𰁞𰁣𰀕𰁊𰀣𰁈𰀣𰀶𰀣𰀕𰁬𰁞𰁩𰁝𰀕𰁥𰁧𰁞𰁙𰁚

___________

_____________

One good ship deserves another.

Global 1200 & 1201 at your service.
The Global 1200 The Global 1201

Why settle for just one flagship when you can have two? As the newest members of the Global
Industries fleet, the Global 1200 and 1201 are next-generation, multi-purpose DP2 construction
and pipelay vessels designed to work in both shallow and deep water.
Incorporating state-of-the-art pipelay systems capable of operating in depths up to
3,000m and handling up to 60” OD concrete-coated pipe, each vessel also has a 1200 MT capac-
ity crane suitable for conventional platform installations and decommissioning. They can mobilize
quickly for destinations across the globe, and are equipped with an enhanced DP2 system with all
the main features of DP3.
In addition, the vessels can handle large diameter pipelay where high bottom tensions are
required or in congested fields. For very shallow water (from 8-23m), the vessels can deploy an
8-point conventional mooring system with thrusters retracted to allow access to non-DP depths.
Please visit our website below to find out more about the crown jewels of Global’s fleet,
and to find the Global Industries office location nearest you.

There’s a New Energy at Global.

[Link]

GLOBAL E&P

tuni basin in the West Papua province. The area has several giant
gas fields already in production, and the Tangguh LNG plant is 10
km (6.2 mi) west of Eni’s acreage.

Australia
Shell has committed to build the world’s first floating LNG vessel
for gas production on the Prelude field, 200 km (124 mi) off north-
west Australia. The 488-m (1,601-ft) long vessel will produce and
convert 110,000 boe/d from the field for at least 25 years, and after a
while should handle production from other fields in the area.
•••
MEO Australia has found a partner for a program on the Heron
and Blackwood gas discoveries in Timor Sea permit NT/P68 off
northern Australia. Eni will earn 50% in Heron by drilling two wells,
and 50% in Blackwood by acquiring 3D seismic and drilling one well.
Eni can acquire a further 25% in both areas by funding work leading
up to a final investment decision.
•••
Santos has discovered oil in the Finucane South prospect in the
Carnarvon basin off Western Australia. The location was 7 km (4.3
mi) from the Fletcher oil field, in the same WA-191-P permit. De-
velopment options include a subsea tieback to the Mutineer Exeter
FPSO, leading to first oil from both Finucane South and Fletcher by
end-2013. Eni will fund its entry into the NT/P68 permit via wells on the Heron and
Blackwood prospects.
Woodside Energy’s latest well in the Pluto area in the same basin
encountered gas in a Triassic target in the Xeres prospect. The well Deutag for FEED for a 3,000 hp modular platform drilling rig, ca-
was drilled 12 km (7.4 mi) southeast of the Pluto-1 find in license pable of drilling large-bore gas wells up to 9,000 m (29,527 ft) deep,
WA-34-L. and capable of transference between dry tree units (DTUs) based
Woodside’s offshore development programs in the region include on a TLP design. The DTUs would be positioned over the Calliance
the Browse LNG project. The company recently commissioned KCA and Brecknock field, 270 km (168 mi) from the Kimberley coast. 

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With members in more than 40 countries, IPLOCA represents some 240 of the
key players in the onshore and offshore pipeline construction industry worldwide.
International Pipeline & Offshore
Contractors Association
Visit [Link] for more information on membership Geneva - Switzerland

How can a rig that big

operate reliably at any time?

Siemens’ electrical solutions for the drilling ship Deepsea Atlantic

combine highest availability with environmental performance.
Deepsea Atlantic is a semi-submersible vessel designed by Odfjell Drilling. With its low emissions and electrical
solutions that reduce onboard oil volumes and the associated pollution risks, the vessel is ideally suited to operations
in environmentally sensitive areas. Siemens supplied the complete electrical package, from the drilling drive system
to the thruster drives. As Deepsea Atlantic often operates under harsh climatic conditions, availability is key. Siemens
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Answers for energy.

OFFSHORE EUROPE Jeremy Beckman • London

Tax hike “devalues” Ekofisk extension for stabilization before being delivered to the
UK assets goes ahead Mongstad refinery on Norway’s west coast.
Higher petroleum taxes imposed since Norway’s parliament has formally ap-
March are already impacting UK offshore proved two major development projects in Norway needs new pipelines
field development. According to a survey the North Sea, with combined investments Around 200 bcm (7 tcf) of gas from Norwe-
by industry association Oil & Gas UK, the of over $15 billion. gian fields could be developed between now
changes could accelerate the sector’s pro- ConocoPhilips’ Ekofisk South and Eldfisk and 2020, claims gas transportation operator
duction decline by 1.5%/yr, and reduce II schemes will exploit a further 450 MM- Gassco. But this will require expansion farther
planned investments by $1.6 billion/yr. boe of reserves on the Ekofisk and Eldfisk north of Norway’s offshore pipeline network.
Chancellor George Osborne’s unexpected fields, and keep the Greater Ekofisk Area in One of the main projects under review is
budget changes in March raised headline tax production for several more decades. Eko- a new pipeline from Statoil’s stranded Luva
rates on UK offshore production to between fisk was Norway’s first producing oil field field in the Norwegian Sea to facilities at
62% and 81%, depending on the field’s age. when it came onstream in June 1971. Nyhamna, which currently process supplies
The government also decided to restrict tax The program for Ekofisk South is based from the Ormen Lange development. Ac-
relief on decommissioning, now capped at 20% on a new 36-slot wellhead platform, 2/4 Z, cording to Gassco, 11 companies are spon-
against the 32% Supplementary Charge (SC). capable of producing 70,000 boe/d, and soring the Luva pipeline studies, with the
Oil & Gas UK’s survey compiled data sup- bridge-linked to the existing Ekofisk com- concept due to be selected this fall, followed
plied by 27 oil companies, responsible for 85% plex. This will be supplemented by a seabed by a final investment decision in late-2012.
of the UK’s production and with current invest- facility (2/4VB) gathering eight water injec- The maximum water depth of the proposed
ment plans in close to 240 potential projects. tion wells. Start-up is scheduled for late-2013. 480-km (298-mi) pipeline would be 1,300 m
The findings suggest that the SC increase im- Eldfisk II calls for a new integrated well- (4,265 ft), the deepest yet for an export sys-
mediately eroded the value of all prospective head, process and living quarters platform, tem on the Norwegian shelf.
UK offshore investments by around 23%. Eldfisk 2/7 S, which will be connected to the However, Gassco CEO Brian Bjordal ad-
The budget has reduced the likelihood of Eldfisk field complex. ConocoPhillips ex- vised caution over longer-term transporta-
60 projects going forward, collectively ac- pects to drill 40 production/water injection tion planning: “There is uncertainty related
counting for total capex of $35.7 billion. And wells from 2/7 S, which will also help extend to [Norway’s] resource potential post-2020,
in the case of 25 projects, the probability of the service life of existing platforms on the and field development in new areas will re-
proceeding has fallen below 50%. Based on Eldfisk and Embla fields. The new facilities quire a coordinated approach to the infra-
existing plans, this suggests that around should enter service in 2015. structure development.”
$19.5 billion of investments are at risk. Statoil’s Valemon is one of the company’s Over time, more options may open in the
As for mature UK fields paying petroleum larger current Norwegian projects. Most of the eastern Norwegian Barents Sea, now that
revenue tax – many of which are important in- main contracts had been issued ahead of the Norway and Russia have agreed on a treaty
frastructure hubs – the 81% tax rate is too high to official sanction, the most recent being the con- concerning maritime delimitation in this
sustain continued investment. This will acceler- struction awards to Samsung for the platform’s region and the Arctic Ocean. PGS’ Harrier
ate decommissioning and cut reserves recovery. topsides and to Hertel Marine for the living Explorer vessel was due to start seismic ac-
Oil & Gas UK is continuing dialogue with quarters – Heerema Vlissingen in the Nether- quisition in the eastern sector this month,
the government on mitigation measures, in- lands is building the steel jacket. The field’s 26 under a program commissioned by the Nor-
cluding extending allowances to lessen the tax bcm (919 bcf) of gas will be sent through the wegian Petroleum Directorate.
burden on new field investments. It has also Huldra field pipeline to the Heimdal complex
called for consultation on all future changes to for onward transportation to markets in Eu- SolveiG buys into Gassled
Britain’s North Sea regime, to avoid deterring rope. Valemon’s condensate will head through Statoil and Total both have sold stakes in
new investors from committing to the UKCS. another pipeline to the Kvitebjorn platform Norway’s Gassled joint venture to SolveiG
Gas Norway for a total of more than $4 billion.
Gassled owns the gas transportation grid and
processing facilities taking gas from Norwe-
gian fields through long-distance trunklines
to the UK and mainland Europe. SolveiG is a
holding company for three investment groups.
Following the sale, Total is out of Gassled alto-
gether, while Statoil has retained a 5% interest.
However, both companies have re-affirmed
their commitment to gasfield development
and production on the Norwegian shelf.
These exchanges headed a spate of re-
cent transactions in the North Sea. Tullow
Oil agreed to pay $430 million to Vattenfall
Group for Nuon, which has Dutch sector
production of 9,000 boe/d. Faroes-based
Atlantic Petroleum bid successfully for UK
southern North Sea specialist Volantis Ex-
ploration, and Valiant Petroleum made an
offer for Norwegian company Sagex Petro-
leum, which has interests offshore Norway,
Potential impact on UKCS investments before and after the recent tax changes (Source: Oil & Gas UK). the UK, and the Faroe Islands. 

20 Offshore July 2011 • [Link]

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GULF OF MEXICO Bruce Beaubouef • Houston

Gulf operators
continue to push
post-Macondo revival
A recent outpouring of announcements
from several GoM operators points toward
a growing resurgence of E&P activity in
the Gulf of Mexico post-Macondo. These
announcements indicated progress on proj-
ects being developed by ExxonMobil, Shell,
BHP Billiton, and Australia’s Entek Energy
Ltd.
Shell has decided to go ahead with devel-
opment at Cardamom field, and ExxonMo-
bil has reported major drilling success in
finding oil in Keathley Canyon.
Shell will make a multi-billion dollar in-
vestment to develop the Cardamom oil and
gas field in deepwater Gulf. At its peak, Shell
says the development will produce 50,000
boe/d with 140 MMboe over its life.
Cardamom is in Garden Banks block 427,
approximately 362 km (225 mi) southwest
of New Orleans in more than 800 m (2,720
ft) of water. The completed subsea system
will include five well expandable manifolds,
Entek Energy Ltd. says it has penetrated the primary L1 sand target in its VR 342 well in the Gulf of
a dual 20-cm (8-in.) flowline, and eight well Mexico, and analysis indicates greater than 40 ft (12 m) of net oil pay.
umbilicals.
The Cardamom discovery well was drilled gas in high-quality Pliocene and Upper Mio- liminary wire-line logging and RCI (MDT
from the Auger platform and features a mea- cene sandstone reservoirs. equivalent) analysis indicates greater than
sured depth of 9,642 m (31,634 ft), a reach of ExxonMobil found 200 ft (61 m) of natural 40 ft (12 m) of net oil pay with an API grav-
more than 4,570 m (15,000 ft), and a vertical gas Pliocene plan at its Hadrian South pros- ity of 32°, based on interpretation of the RCI
depth greater than 7,620 m (25,000 ft). pect in Keathley Canyon block 964 in 2009. data.
Modifications to the Auger platform will ExxonMobil is the operator of KC918, Current operations are running side-wall
include additional subsea receiving equip- KC919, KC963, and KC964 with 50% work- cores to obtain additional reservoir and oil
ment, and a new production train and weight ing interest. Eni Petroleum US LLC and character information (including confirma-
mitigation, which is expected to significantly Petrobras America Inc. each hold a 25% tion of the API gravity of the oil). The well will
increase the Cardamom liquid handling, working interest in KC919, KC963, and then be deepened to the planned total depth,
cooling, and production capacities. KC964. Petrobras America Inc. holds a 50% which is 8,552 ft measured depth (2,606 m);
The first Cardamom exploration well has working interest in KC918. and the new hole section logged.
been producing directly from the Auger plat- In addition, BHP Billiton says it has Following this, production liner will be
form since December 2010. started production from its Shenzi field in run across the open hole section and the
The Cardamom discovery is a result of the GoM, thus becoming the first operator well will be suspended as a future producer.
advances in seismic imaging and extended with new deepwater production since the Development planning will begin immedi-
reach drilling. The potential of Cardamom moratorium imposed during the Macondo ately leading to first oil as soon as practi-
was first recognized early in the Auger de- incident. The SB-201 well in Green Canyon cable. Further announcements will be made
velopment, but could not be fully assessed block 653 was drilled to a measured TD of once the timing becomes clear.
due to a layer of salt nearby which affected 25,126 ft (7,658 m) and produces approxi- The above results are as predicted pre-
the quality of traditional seismic images. Ad- mately 17,000 b/d of oil. drill and provide further confidence in the
vances in seismic imaging helped achieve Shenzi is approximately 120 mi (195 km) gross 3P potential, established by previous
significant improvements. off the Louisiana coastline in approximately drilling on the block, independently evaluat-
For its part, ExxonMobil Corp. has an- 4,300 ft (1,300 m) of water, making it the sec- ed at circa 7.5 MMbbl of oil (1P 2.5 MMbbl;
nounced two major oil and one gas discov- ond deepest TLP in the world. The overall 2P 4.8 MMbbl; 3P 7.5 MMbbl) and 9.5 bcf of
ery in the deepwater Gulf of Mexico in its field comprises four blocks: Green Canyon gas (1P 3.8 bcf; 2P 6.3 bcf; 3P 9.5 bcf).
first post-moratorium exploration work. 609, 610, 653, and 654. BHP Billiton is the As previously announced, it is not intend-
Well KC919-3 in Keathley Canyon block operator with 44% equity. Joint interest pared to test flow rate in this well. Analog stud-
919 encountered more than 475 ft (145 m) ticipants are Hess Corp. and Repsol, each ies performed independently on Entek’s
of net oil pay and a minor amount of natural with 28% equity. request suggest potential flow rates of 500-
gas in predominantly Pliocene sandstone Work is under way in other parts of the 1,000 b/d with minimal decline for the first
reservoirs. Drilling continues to deepen the Gulf as well. Australia’s Entek Energy Ltd. three to four years. Further analysis will
well. has announced an update on the VR 342 well be conducted once side-wall core data has
Drilling in early 2010 encountered oil and in the Gulf of Mexico where the company been analyzed. The company says that this
natural gas at Hadrian North in KC919 and has a 50% working interest. The well is at is common practice in the GoM, where nu-
extending into KC918, with more than 550 ft 8,162 ft measured depth (2,500 m) and has merous existing producing analogues give a
(168 m) of net oil pay and a minor amount of penetrated the primary L1 sand target. Pre- high level of confidence. 

22 Offshore July 2011 • [Link]

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SUBSEA SYSTEMS Gene Kliewer • Houston

EMAS installs Shell umbilical in GoM UofH opens subsea

EMAS AMC has completed installation of 38 km (23.6 mi) of um-
bilical for Shell in the Gulf of Mexico.
engineering certification program
The 80 mm (≈ 3 in) electro-hydraulic umbilical connects Popeye The University of Houston has created a subsea engineer-
ing certificate program, the first of its kind in the United
field in Green Canyon block 116 to the Cougar platform in South
States, according to the school.
Timablier block 300. Water depth at GC 116 is 616 m (2,021 ft) and
More than 24 students enrolled in the inaugural program
110 m (361 ft) at Cougar.
course on flow assurance. Most students came to the program
EMAS says this was the first project to use a new 150 metric through either Cameron, FMC Technologies, or GE Oil & Gas,
ton flexible deployment system on the BOA Sub C. The system is companies that have been advising the UH Cullen College
designed to lay flexible piping and umbilicals in depths to 3,000 m of Engineering on development of the subsea engineering
(9,842 ft). program.
“In addition to helping provide much-needed engineering
Fasttrack Visund on schedule talent for the state’s petroleum industry and contributing to
Statoil’s first fasttrack project – Visund South – is moving as Texas’ economic health, this program will be successful for
planned. The seabed template is undergoing installation at the field another reason – it is the first post-graduate program of any
south of Gullfaks in the North Sea. The template was placed barged kind in subsea engineering in the US,” said Matthew Franchek,
from Grenland Group’s yard in Tønsberg last week. professor of mechanical engineering and director of subsea
The template is the first to have been built from a standard cata- engineering.
logue for subsea equipment. This will form the basis for the continu- The new program also dovetails into UH’s petroleum engi-
ing development and use of the standard catalogue in the fasttrack neering program, which recently established an undergradu-
portfolio, says Statoil. Visund South is expected to come onstream ate degree program in addition to its graduate curriculum.
in 2012. For more information about the program, contact Janice
Quiroz at jquiroz@[Link].

in blocks 05.2 and 05.3 of the Hai Thach and Moc Tinh gas fields.
The high-tech equipment, with the capability to operate at 350
°F and 15,000 psi, is a first for Vietnam. The contract follows GE’s
recent agreement with Total Malaysia to supply ultra HP/HT equip-
ment (450 °F and 15,000 psi).

Arctic subsea JIP in progress

An INTECSEA-lead joint industry project to address the delivery
of strategically important subsea developments in remote and hos-
tile environments – particularly in offshore arctic and cold-climate
The Visund South seabed template at Grenland Group’s yard in Tønsberg.
regions – is in progress.
(Photo: David Burke) The JIP partners foresee subsea processing requirements for
both brownfield expansions and greenfield developments within the
“We’ve been working closely with the supplier industry to develop next decade.
standard equipment for this part of our field development portfolio. Garry Mahoney, INTECSEA senior vice president business develop-
This means that we can start to build equipment more quickly and ment and chief technology officer, advises the JIP aims to encourage
develop smaller finds more efficiently,” says Halfdan Knudsen, who the use of proven and evolving technologies from deepwater Gulf of
heads up the fasttrack portfolio on the NCS. Mexico, offshore Brazil, and northern North Sea to enhance produc-
It has taken less than a year to build the Visund South structure tion in arctic and subarctic waters, including offshore Eastern Canada.
from the signing of the contract for subsea equipment with FMC. Targeted benefits, says Ian Ball, INTECSEA project manager for
“We submitted the plan for development and operation of Visund the JIP, include improved feasibility in terms of initial cost and life-
South in January. Four months later, we’ve built the first seabed tem- of-field investment.
plate for the first fasttrack project. We’ve come a long way towards One deliverable of the new JIP is a user-friendly, system-design
cutting the time from discovery to production in half,” says Kjetel database that consolidates objective and up-to-date component in-
Digre, who is responsible for project implementation in Technology, formation, allowing operators to match their asset needs with the
Projects & Drilling. most appropriate conventional, enhanced and active subsea produc-
The Visund South installation will be concurrent wtih that on the tion technologies.
Marulk development, which Statoil is carrying out on behalf of op- To address these and other frontier issues, the JIP will generate a
erator Eni. This will mean increased efficiency and cost savings for database with an interface tool that allows operators and developers
both projects. to screen and select from an array of active production technologies,
including separation, boosting, compression, and direct electric heat-
GE to supply HP/HT ing systems, suitable for stranded and existing field developments.
subsea production trees to Vietnam The JIP is led out of INTECSEA’s St. John’s, Newfoundland and
GE Oil & Gas has contracted to supply high-pressure/high-temper- Labrador, Canada, office. INTECSEA personnel supporting the proj-
ature (HP/HT) equipment to Bien Dong Petroleum Operating Co., a ect include Ian Ball; Dr. Kalyana Janardhanan, group lead Subsea
subsidiary of the state-run Vietnam Oil and Gas Group (PetroViet- Active Production Technology; Richard Voight, executive engineer;
nam), for the development of gas fields, offshore Vietnam. Cody Moffitt, Subsea Discipline manager; and Julie Burke, Subsea
Under the $30 million contract, GE will provide 16 sets of HP/HT engineer.
surface wellheads and subsea production trees, along with associat- The JIP committee continues to consider additional participants.
ed equipment and services, to deploy in Phase I of the development Interested parties should contact Ian Ball at [Link]@[Link]. 

24 Offshore July 2011 • [Link]

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you succeed in every stage of your development and
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VESSELS, RIGS, & SURFACE SYSTEMS Bruce Beaubouef • Houston

This trend has led to the order of various new rigs, some with
long-term contracts but most ordered on speculation.

Rowan contracts to build

two 12,000 ft drillships
Rowan Companies has announced that a subsidiary has entered
into turnkey contracts for the construction of two ultra-deepwater
drillships with a cost of approximately $605 million each. The drill-
ships will be constructed by Hyundai Heavy Industries Co. at its Ulsan
shipyard, and are expected to be delivered in late 2013 and mid-2014.
The DP-3 compliant, dynamically positioned drillships will be
equipped with retractable thrusters, dual-activity capability, five
mud pumps, dual mud systems, and a maximum hook-load capacity
of 1,250 tons. Each will be equipped with a seven-ram BOP incorpo-
rating full acoustic backup control, and storage and handling facili-
ties for a second BOP. The drillships feature hull integration with be-
low-deck riser storage, 4 million pounds riser tensioning, main load
path active-heave drawworks with crown-mounted compensation,
three 100-ton knuckle boom cranes, an active-heave 165-ton crane
for simultaneous deployment of subsea equipment, a variable deck
Seadrill says it is seeing a surge in ultra-deepwater rig demand in West
load capacity of 20,000 tons, and accommodations for 210 personnel.
Africa, Southeast Asia, and Brazil.

Demand surging for ultra-deepwater rigs Gibdock wins further commission from Solstad
Seadrill says tendering and contracting for ultra-deepwater rigs Solstad Offshore has commissioned Gibdock to drydock and to con-
worldwide has improved significantly this year. Available rig capac- vert the platform support vessel Normand Vester. Last year, the yard con-
ity has also been absorbed rapidly. verted the Normand Trym and Normand Vibran for the same owner.
Despite the fall-out from the Macondo incident last year, the com- The scope for this latest project is similar, with some differences.
pany says utilization rate in the ultra-deepwater market (up to 7,500 For instance, the Normand Vester’s fresh water capacity is being in-
ft, or 2,286 m water depth) has remained nearly 100%. creased by converting two of the stability tanks from water ballast
In the US Gulf of Mexico, increased clarity concerning new drill- to fresh water, and eight of its mud tanks are being converted to
ing permit requirements has led to renewed interest in securing rig provide increased fuel storage.
capacity. Seadrill expects this positive trend to continue.
The company also has noticed a surge in ultra-deepwater rig de- Solstad Offshore has
mand in West Africa, Southeast Asia, and Brazil. As a result, avail- commissioned Gibdock to
able rig capacity has diminished rapidly. The market appears to be drydock and to convert the
close to a supply/demand balance, and based on known programs, platform support vessel
Normand Vester. This work
the number of available rig years in 2011 could drop to less than two
is needed to prepare the
rig years and then to less than 10 rig years in 2012. 84-m (275-ft) long, 4,500
Over the longer term, Seadrill adds, the increase in rigs under dwt vessel for a four-year
construction could restrain the upside potential of day rates from charter that Solstad has
late 2013 and into 2014. Since last November, it adds, the number of recently agreed to with
new ultra-deepwater rigs on order has risen to 31. Petrobras offshore Brazil.
Nevertheless, two recent five-year contracts awarded for the Gulf
of Mexico with start-up in late 2013 underline the importance of new Additionally, two wing tanks are being converted to void spaces
and modern equipment and on the sound environment for ultra- opened by the changes to the stability tanks. This work is needed
deepwater field developments. to prepare the 84-m (275-ft) long, 4,500 dwt vessel for a four-year
Consensus is growing, Seadrill concludes, that the number of charter that Solstad has recently agreed to with Petrobras offshore
drilling programs planned to start prior to end-2012 exceeds the Brazil. Here the vessel will need to supply offshore facilities with
number of rigs available and technically capable of such work. 1,600 cu m (422,675 gal.) of potable water and 1,600 cu m of fuel oil.
Seadrill also sees steady improvement in demand for premium Another Solstad ship, the 127-m (416-ft) long, 9,500 dwt construc-
jackups suited for water depths to 350 m (1,148 ft). Oil companies tion vessel Normand Cutter, also docked at Gibdock in April follow-
are drawn to the safety and efficiency gains offered by the newer, ing a program off West Africa, to undergo its second class renewal.
higher-spec units. Gibdock also conducted thruster, crane, and general repair work.
Despite the 40 new jackups ordered since last October, utiliza-
tion worldwide of premium jackups has remained above 90%. The Petrobras releases drilling rig
general preference is for new rigs at the expense of older rigs, even contract bidding process
when the drilling program does not demand these increased techni- Petrobras has approved the bidding process to award contracts for
cal capabilities, says Seadrill. multiple offshore drilling rigs to be built in Brazil. Each rig will get a leas-
Southeast Asia is the biggest draw for premium jackups, but there ing contract with the successful bidder and an operation service contract.
has been increased interest from the Middle East, West Africa, and Companies can bid for one or more rigs up to a total of 21 units. Certifi-
the Americas. cation of minimum domestic content is required. Petrobras says this is
In the North Sea, oil companies have been looking for very large, part of its plan to contract as many as 28 new ultra-deepwater drilling rigs
high-spec harsh environment jackups that can drill and simultane- for, among other things, pre-salt field exploration. A contract for the first
ously host production equipment. batch of seven rigs was announced this February by Petrobras. 

26 Offshore July 2011 • [Link]

____________

DRILLING & PRODUCTION Eldon Ball • Houston

Industry execs talk placement outlook, 7% said it would improve (PetroChina’s parent) in Iraq’s Rumaila field
plans, concerns significantly, 32% expected it to somewhat im- development as a case in point, as well as
In a global survey of oil and gas executives, prove and 26% thought it would stay the same. Shell’s link with Petronas, which stretches
GL Noble Denton, a consulting and engineering Only 2% thought it would decline significantly, from Egypt to Iraq and Malaysia. “Shell is
company based in Hamburg, Germany, collect- while 7% said it would decline somewhat. Un- already active with many NOCs,” the report
ed the opinions and forecasts of a broad scope certainty showed itself again, however, as 26% quotes Simon Henry, CFO, Royal Dutch Shell
of industry CEOs and upper management. Re- said they didn’t know or it wasn’t applicable. Sadad Husseini, as saying. “Our business
spondents included operators such as Chevron, Another surprising response came when the model is built around creating opportunities
Royal Dutch Shell, Marathon, Statoil, Eni, Rep- respondents were asked what would be the most to connect resource producers with attractive
sol, Reliance Exploration and Production, Saudi favorable regulatory environment to operate in. markets. We have significant joint-venture in-
Aramco, and institutions such as Morgan Stan- The US scored highest at 11% – who would have terests with Saudi Aramco, Gazprom, CNPC,
ley and the American Petroleum Institute. imagined – followed by China at 8%, then Bra- and Qatar Petroleum, in addition to most
As might be expected, a good part of the sur- zil, India, Australia, Iraq, Saudi Arabia, Canada, other NOCs. Strong partnerships are essen-
vey results were predictable – more technical Mexico, and Nigeria. For those who just can’t tial to develop the long-term investment proj-
and geographic challenges, regulatory chang- stand suspense, the others ranked in descending ects…and this trend will continue.”
es ahead, the growing role of national oil com- order were Angola, Czech Republic, Malaysia, The logic of these partnerships is seen as
panies, increasing opportunities in Asia, etc. Norway, Colombia, Russia, UAE, UK, Argentina, compelling, and the report quotes Jay Pryor,
Others, however, give us a window into the Bahrain, Chad, Equatorial Guinea, Kazakhstan, vice-president for corporate business develop-
expectations – and concerns – of our industry Kuwait, Libya, New Zealand, Pakistan, Philip- ment at Chevron: “A lot of IOCs and NOCs are
leaders. Some results were surprising. pines, and last of all, Qatar. starting to recognize the value of risk mitigation
For example, when asked if their company through partnership. You push off the risks
planned to increase or decrease the frequency INOCs as onto other parties outside of that venture.”
or intensity of its exploration activities over competitors, partners While there are opportunities, IOCs’ risks
the next 12 months, a surprising 31% said Among the emerging trends spotted by are rising and their contribution is changing in
they didn’t know. There might be any number the corporate leaders surveyed by GL Noble style and content, the report states.
of reasons for such uncertainty – drilling rig Denton was the move toward international- “Some state-backed oil companies, such as Abu
access, pending government approvals, cash izing national oil companies (INOCs). Dhabi’s Mubadala, the sponsor of the Dolphin
flow and budget constraints – but it seems tell- “The new breed of Asian internationalizing natural gas pipeline from Qatar to the UAE, see
ing nonetheless that a full third of the industry NOCs – or INOCs – have emerged as disrup- the future in ‘government-to-government’ deals
is doubtful of what it will spend on exploration. tive competitors over the past two years,” the that tie in infrastructure elements, such as power
Other responses were: significantly in- report notes. “Companies such as PetroChina plants, water facilities, and roads,” they report.
crease, 13%; somewhat increase, 26%; stay the and Petronas boast healthy cash flows, self-
same, 23%; somewhat decrease, 4%; and signifi- sufficient integrated operations, and already Produced water treatment
cantly decrease, 3%. operate in a similar way to the IOCs. These MyCelx, which specializes in produced wa-
Asked which region of the world offered new market entrants have created consterna- ter treatment both onshore and offshore for dis-
the greatest opportunity in terms of revenue tion for NOCs and IOCs alike.” charge to very low discharge limit, has signed
growth, Southeast Asia scored highest at 32%, The report points out that Asian NOCs made a contract with Chevron USA Inc. to design and
with North America next at 30%, and the Mid- significant inroads in Iraq’s upstream bid rounds deliver a produced water treatment system for
dle East/North Africa close behind at 29%. The in 2009 and 2010, confirming their status as di- the Jack/St. Malo floating production facility in
Arctic was dead last at 1%. rect competitors with IOCs for some of the most deepwater Gulf of Mexico that will remove oil
Regarding future challenges, the respon- prized hydrocarbons assets. These NOCs have and water soluble organics (WSO) to below 10
dents named rising operating costs (including an explicit mandate to develop international re- parts per million (ppm).
insurance premiums) as their top concern. sources to meet domestic needs. The INOCs are The design requirements for the Jack/St.
Second was increasing regulation, followed by cooperating with other IOCs, chiefly in projects Malo floating production facility calls for an
competitors, limited new areas for exploration, where innovation, cost management, and risk overboard discharge limit that is lower than the
and shortage of skilled labor, in that order. sharing are the key factors. current EPA limit of 29 ppm, and MyCelx says
Asked to rate their company’s reserves re- The report cites BP’s link-up with CNPC it can provide that technology. 

28 Offshore July 2011 • [Link]

Improving the value, productivity and safety of your operations.

Nature has many ways to challenge a land or deepwater project.
Devin International is the trusted answer to meet those challenges.
We provide our customers with newer and more advanced equip-
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and surface test tree installation – quickly, safely and cost-effectively
preventing the natural barriers for critical interventions and assemblies.
Devin International stands ready for the challenges. __________________________

GEOSCIENCES Gene Kliewer • Houston

Subsalt seismic leads

to major Shell GoM development
Bjornoya Ost
Shell has announced a multi-billion dollar investment to develop
its Cardamom oil and gas field in the deepwater Gulf of Mexico. Nordkappbassenget
Cardamom is expected to produce 50,000 boe/d at peak production Bjornoya Vest
and more than 140 MMboe over its lifetime.
Lopparyggen Ost
The potential of Cardamom was first recognized early in the Au-
ger development, but could not be fully assessed due to a layer of Bjornoya Sor
salt nearby which affected the quality of traditional seismic images.
Advances in seismic imaging helped achieve significant improve-
Finnmark Ost
ments. Troms I Finnmark Vest
“Technological advances in seismic imaging and drilling have al-
lowed us to both discover and access this new field,” said Marvin
Odum, Shell Upstream Americas director. Troms II
Shell discovered the Cardamom reservoir in 2010 using advanced
seismic technology that was able to produce improved images ver-
sus traditional seismic methods. The discovery was confirmed by Troms III
drilling a well from Shell’s Auger platform that broke records for
NORWAY
length and depth. The exploration wells were drilled more than 6.4
km (≈21.000 ft) below the seabed.
Production from Cardamom will flow through the Auger platform, Searcher Seismic Pty. Ltd. and project partner MAGE have started the
minimizing the offshore footprint by using existing infrastructure. Bjornoya Basin North (BBN11) 2D Non-Exclusive Seismic Survey in the
Cardamom is the latest step in Shell’s deepwater energy produc- Norwegian Barents Sea utilizing the seismic vessel the RV Professor
tion activities in the GoM. Perdido, the world’s deepest offshore Kurentsov. The survey is sponsored by Front Exploration and is a high-
resolution 2D survey of 3,121 km (1,939 mi) that targets the shallow
production facility, came onstream last year and later that year Shell
prospective sedimentary section along the Bjornoyrenna Fault Zone
announced the decision to go ahead with a second platform in our
Complex. The survey aims to provide a dense infill to the existing seis-
Mars B field in the GoM. mic data resulting in improved data coverage to a 1 x 1 km grid pattern.
The BBN11 Survey will be integrated with Searcher’s ongoing regional
SeaPro Nav deployed onto seismic vessels Havspurv 2D Seismic Survey which is using similar high-resolution ac-
Sercel has successfully deployed SeaPro Nav, its new integrated quisition parameters. BBN11 will have a total coverage of 2,100 sq km
navigation system for all in-water equipment. SeaPro Nav is now (810 sq mi) in the vacant area about 30 km (18.6 mi) north of the recent
the master integrated navigation system on board two CGGVeritas Skrugard oil discovery (250-500 MMbbl recoverable reserves). The data
3D vessels, including the Elnusa Finder operated by the Elnusa CG- is scheduled to be completed in processing during 4Q 2011.
GVeritas joint venture. It also is in use on two 2D vessels operated
by GuangZhou Marine Geological Survey.
According to Sercel, SeaPro Nav can be deployed for the full Fingerdjupet
Sub-basin
range of towed-streamer acquisition surveys from 2D through to
wide-azimuth. Its flexible and innovative multi-vessel architecture
ensures easy operation and fast adoption of new seismic acquisition
Bjornoya
techniques, says Sercel. Basin
With advanced positioning algorithms, simple visual data dis-
plays, and GIS-based alarms, SeaPro Nav is fully compatible with
other related Sercel marine tools.
“Everyone onboard the Elnusa Finder appreciates how easy it is
now to access positioning data with the Sercel SeaPro Nav,” said Loppa High
Sorvestsnaget
Jean-Francois Roudaut, VP, APAC Regional Marine Acquisition, CG- Basin
GVeritas. “The upgrade was seamless and the benefits are clear.”
SeaPro Nav is part of the Sercel navigation system portfolio, which
also includes SeaPro Bin, SeaPro Current, and SeaPro Resolve.

Technology advancements
Blueback Reservoir has released a new version of its Blueback
Toolbox. The Toolbox is a suite of Petrel plug-ins developed in Paradigm and JKX Oil & Gas have signed a multi-year software
Ocean. license for a seismic-to-simulation workflow to be used as the com-
The modules include Blueback Geology Toolbox, Blueback Geo- pany’s standard.
physics Toolbox, Blueback Project Management Toolbox, and the Covered in the contract are Paradigm’s SeisEarth, SKUA, and
new Blueback Reservoir Engineering Toolbox. Geolog.
The modules integrate seamlessly with Petrel and can be down- “For several years JKX has successfully used Paradigm SeisEarth
loaded on the Schlumberger Ocean Store. for our exploration 2D and 3D based seismic interpretation. After a
The Roxar RMS 2011 release is now available commercially. thorough review process JKX selected additional Paradigm petro-
Roxar says this release includes the ability to model around and physical and model building software. We believe it offers the most
under salt, to provide enhanced facies modeling, improved well cor- technologically advanced and time efficient platform on which to
relation tools, the ability to integrate fractures into reservoir model- develop our reservoir models,” said Ritchie Wayland, exploration
ing, and improved usability and integration. manager at JKX. 

30 Offshore July 2011 • [Link]

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O F F S H O R E A U T O M AT I O N S O L U T I O N S

Simulation provides a tool for effective collaboration

Tom Fiske facility, regardless of the experience or skill with many legacy models, proprietary ther-
ARC Advisory Group of the local workforce. The dynamic models modynamic packages, and other third- par-
used for design can be the basis for train- ty simulation tools. For instance, the actual
As Offshore’s readers know all too well, ing simulators to increase the proficiency reservoir itself is modeled using a different
designing, constructing, and operating an of the local operators. The major concern simulation software package. The reservoir,
offshore production facility in a safe and with training simulation is realism; it must subsea production system, and topside pro-
environmentally responsible manner is dif- simulate the response of the process to dis- cessing facility are, in essence, a continuous
ficult and complicated. It involves multiple turbances to the operators’ adjustment in process. Changes in the reservoir affect the
groups internal as well as external to the real time. topside processing facility, which in turn,
owner-operator, and multiple disciplines In the past, models built for design pur- affects the re-injection of gas in the well,
with different responsibilities and different poses were never reused. This discarded which affects recovery, and so on. Today’s
functions. In particular, the lifecycle of an valuable data, information, and knowledge, common simulation environments integrate
offshore production facility has many phas- resulting in duplication of effort in later the subsea production system with the top-
es, beginning with conceptual design and phases. Today, leading owner-operators side processing facility; but the reservoir
continuing through operations and finally leverage this knowledge across the total remains outside of its domain. Standards-
decommissioning. lifecycle of an asset. This lifecycle approach based architectures can facilitate exchange
As many energy companies have learned, helps lower costs, identify and resolve prob- of results between different software pro-
advanced simulation incorporating a com- lems better, and shorten development time grams.
mon modeling environment with consistent for various simulation systems. The open architecture also allows the
models across the lifecycle of an asset can owner-operator to incorporate its own mod-
facilitate this intricate procedure. Simulation els and thermodynamic packages into the
as a collaboration tool simulation environment. They also can in-
Lifecycle benefits Many organizations fail to take advantage corporate third-party multi-phase pipe flow
Today’s owner-operators use advanced, of data, information, and knowledge creat- models into the simulation environment.
software-based simulation tools to perform ed by different departments or in different
conceptual design of a subsea production phases of a project. This results in duplicated Recommendations
system and the topside production facility. effort which increases costs and lengthens To remain proficient, today’s owner-op-
One main purpose of the conceptual design design cycles. Leveraging modeling efforts erators must continue to improve workflow
is to develop a flowsheet of the production across the asset lifecycle ensures the use of methods to increase efficiency and produc-
process and to establish the size and con- accurate and consistent models for design, tivity, reduce costs, and facilitate collabora-
figuration of piping and equipment such as operations, control and management tech- tion across all project phases, including both
pumps, compressors, and separators. This nologies, and facilitates knowledge reuse operations and, ultimately, decommission-
is often accomplished using a steady-state and collaboration. ing. Using a common modeling method can
model that incorporates material and com- When designing an offshore production promote facility lifecycle benefits through
positional data determined from a sample of facility, owner-operators typically make dif- data reuse and collaboration by linking dif-
production from the reservoir. ferent teams responsible for different as- ferent phases and functions such as concep-
In detailed design, accuracy rather than pects. The subsea team is responsible to get tual design, costing, detailed engineering,
speed is paramount. Therefore, compre- the oil to the surface. The topside team is operator training, process improvements,
hensive analysis using complex rigorous responsible to design the surface process- optimization of operations, etc.
models that consider every facet of the pro- ing facility. Within each team are multiple By adopting a common model approach
cess is highly desirable. Here, by adding disciplines such as reservoir, production, where appropriate, owner-operators can
increasing detail and complexity, design en- and processing engineering as well as exploit the full and considerable lifecycle
gineers transform simple conceptual models transport specialists. Increasingly, leading benefits of their simulation tools. However,
to high-fidelity models that accurately repre- owner-operators use a common simulation this requires buy in and support from differ-
sent the process. This way, they can refine and modeling environment as a collabora- ent groups within an organization to break
and transform the conceptual design into a tive tool among different groups around the down the silo mentality and to result in col-
detailed design that forms the basis for bids world. The common model and simulation laboration on different aspects and phases
from vendors. environment provides a common basis for during the lifecycle of an asset. 
Companies are leveraging efforts put communications for all disciplines, acts as a
into steady-state models to develop and use repository for data, and promotes collabora-
consistent dynamic models. For offshore tion among the groups.
projects, dynamic simulation can help de- The author
sign the control system and other elements Open standards Tom Fiske, senior analyst Automa-
tion & Supply Chain, ARC Advisory
such as the inlet size to topside separators increase versatility Group, is part of the Automation
that are sensitive to transients and slugging In the past, many of the simulation tools Consulting team at ARC. He focuses
phenomena. Operators also use the dynamic in upstream oil and gas were incompatible operations management, process
simulation during commissioning to help or used different models, making collabo- simulation, operator training simu-
identify problems. ration difficult for different departments or lators, advanced process control,
Increasingly, new projects are in less-de- disciplines. asset optimization, and collaborative
veloped regions of the world and often re- For the design of an offshore production production management markets. Contact the author
quiring local participation in operating the facility, owner-operators typically contend at tfiske@[Link].

32 Offshore July 2011 • [Link]

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________________________

DRILLING RIG REPORT

Meeting the needs of today’s Gurdip Singh

Contributing Editor

rig owners and operators

Executive director of Keppel FELS discusses how
the latest rig designs target safety and efficiency

S
ingapore’s Keppel FELS says that the dle East and North Africa has caused some to operate in water depths of 2,000 ft to 12,000
global drilling industry has begun disruption to oil supply. Overall, we expect ft (610 m to 3,658 m), 130 units are about 30
to renew its rig fleet, with a wave of the fundamentals of offshore marine indus- years old. We are hopeful that these new or-
orders coming in the last quarter of try to remain intact in spite of the unrest in ders will replace these units.
2010. More rig building orders are the Middle East and North Africa, and the The jackup market is expected to stay ac-
expected for units with the highest standard spate of natural disasters in Japan. tive on the back of the recent surge
of safety, Aziz Merchant, executive director Energy demand and oil prices are of new orders. With majority of the
of Keppel FELS, says in an exclusive inter- expected to remain robust, with de- installed fleet considered as low
view with Offshore magazine. mand driven by population and eco- specification units, jackup fleet re-
••• nomic growth, particularly from placement is expected to continue
Offshore: How is the demand for new drill- developing countries across Asia/ throughout the decade and mar-
ing rigs? Pacific and Latin America. ket conditions for premium jackup
Aziz: Presently, many oil and gas companies Offshore: Do you expect more new- rigs are likely to further improve.
have either restored or expanded their plans, build orders to expand rig capacity Moreover, incremental demand
with the expectation that energy demand and globally or to be replacements of old- from Brazil and newer deepwater
commodity prices will remain relatively robust er units? Or are there more contracts locations such as Gulf of Mexico’s
Executive Director
over the longer term. Pareto Securities has for upgrades and retrofitting? of Keppel FELS Aziz
Lower Tertiary trend, West Africa,
estimated that oil and gas companies will be Aziz: We expect oncoming orders Merchant. the Mediterranean, and Southeast
raising their E&P budgets by 15%-20% in 2011. for mid-water units, covering water Asia will further support growth in
The industry is also seeing a change after depth below 500 ft (152 m) to 5,000 ft (1,524 demand for deepwater rigs such as semisub-
the Macondo oil spill accident in the Gulf of m), an area which is beyond the operating ca- mersibles and drillships.
Mexico. Oil companies are looking at new pacity of jackups, which usually operate in wa- Offshore: What are the new challenges in
rigs with good safety features and features ter depths down to 450 ft (137 m). Of the 200 drilling for oil and gas these days?
which can improve productivity. This will semisubmersible rigs in the world designed Aziz: Apart from increased safety consider-
certainly create more demand for new units ations, oil and gas exploration has been mov-
in the coming year. We also expect signifi- ing into harsher and deeper waters in more
cant fleet renewal, given that a large number remote locations. We are seeing demand for
of rigs are more than 30 years old. In fact, higher specification and more capable drill-
some drilling companies began placing re- ing, and we cater to these demands through
newal orders last fall. In the future, the age our suite of proprietary designs and our “near
of the rig will be one of the main require- market, near customer” strategy.
ments by oil companies when choosing a Offshore: How has the drilling environment
particular rig. We expect them to favor new changed?
technology-savvy rigs in upcoming bids. Aziz: We are moving toward deepwater and
We have 24 confirmed orders in the jackup ultra-deepwater semisubmersible rigs. We have
categories of the 46 ordered globally since built the semisubmersible DSS21 and DSS51,
the last quarter of 2010. We are still getting which are designed to operate in 10,000 ft
inquiries, and there is still an active market (3,048 m) of water. These rigs have state-of-the-
looking for new jackups. I believe that nearly art dynamic positioning systems, since it would
50% of the jackup fleet renewal orders may not be feasible for them to carry the additional
have been placed with global rig builders. load of the mooring systems onboard in deep-
Drilling contractors will also be looking for water locations. Rigs operating below 5,000
specialized rigs to drill in the Arctic area in ft (1,524 m) water depth have self-contained
the future. Currently, we are completing two mooring systems.
drillships with hulls designed to operate in the Overall, the offshore oil and gas exploration
harsh Arctic environment. The steel that has and production is barely six decades old yet
been used for the hull are designed to bear the the industry has already been pushing into
icy environment. We are working on two rigs the ultra-deepwater depths of up to 12,000 ft
for Noble Drilling – Bully 1 and Bully 2. Keppel’s in-house KFELS B Class has been (3,658 m). Its latest frontiers lie in the difficult
Unfortunately, political turmoil in the Mid- improved to Super B Class. terrains of the Caspian Sea region and the Arc-

34 Offshore July 2011 • [Link]

___________________

DRILLING RIG REPORT

tic Ocean, where the winter temperatures can and environment) by the industry will favor
reach below -60° C (-76º F). drillers and operators with stronger safety
Harvesting energy in these harsh environ- practices and newer high-specification equip-
ments is neither easy nor cheap. Operators ment. The effects are already apparent and
and oil services companies are looking for continue to provide impetus for the renewal
companies to deliver innovative solutions and upgrading of the global offshore fleet.
with the right quality, on time, within budget, Specifically, the US Bureau of Ocean Energy
and without incidents. As a leading shipyard Management Regulations, and Enforcement
and offshore rig designer, the Keppel Off- has listed the latest requirements required
shore and Marine Group has to adapt, inno- to operate in territories under its jurisdiction.
vate, and develop solutions to address these These include increased inspection testing
needs and challenges. We have been done it and certification of BOPs; increased number of
through our B Class jackups, SSDT semisub- shear rams on all deepwater BOPs; increased
mersibles, and DSS semisubmersibles, and scrutiny of casing and cementing of wells;
will continue to improve on our designs. requiring operators to demonstrate improve
Offshore: What have been the lessons from blowout containment and spill response plans;
BP’s Gulf of Mexico oil spill? and environmental re-review of deepwater
Aziz: As a result of the Macondo blowout projects. We expect a good number of rigs to
incident in the Gulf of Mexico last year, there undergo retrofit and upgrade to meet these re- FELS has delivered a total of 33 KFELS B Class
is a greater focus on newer drilling units quirements for operating in the Gulf of Mexico. jackup rigs to customers operating in different
parts of the world.
that have superior technical and safety capa- Offshore: What changes has Keppel FELS
bilities. The effects are already apparent and made in building oil and gas drilling rigs? only two companies in the world supplying the
continue to provide impetus for the renewal Aziz: Our rigs are designed to meet the critical jacking systems used to elevate jackup
and upgrading of the global offshore fleet. needs of the market. We work with our cus- rigs, and we were totally reliant on them for
With the resumption of activity and cash flow, tomers to customize the rigs to their require- quality control, pricing, and delivery sched-
drilling companies are pushing their projects ments. A majority of the rigs have been based ules. This did not give us much choice and we
forward and planning for future expansions on our proprietary designs from the KFELS B had to do something that would give us better
with newer and more capable fleets. Class rigs to the SSDTs and the DSS series of supply control and cost savings in the rig con-
Overall, stricter regulatory standards and semisubmersibles. struction process. This led us to develop our
regimented focus on HSE (health, safety, For instance, during the 1990s, there were proprietary jacking and fixation systems.

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DRILLING RIG REPORT

It was a very big move for us at that time; modations being built on rigs. Rig operators Fatigue is bad for work; and as such, rig opera-
Keppel FELS was just a pure shipyard, build- are paying more attention to the drilling and tors emphasize the importance of rest for their
ing according to plans and designs provided by marine crew working on the rigs, and have offshore personnel.
customers. To persuade a client to use our own started providing them with better facilities Rig owners and operators also have optimized
products was a big step. We even went to the for sleeping as well as recreation. Accommo- the drill floor and have increased automation
extent of purchasing an extra set of jacking and dations for people working on a jackup unit with more safety features on the drill floor. This
fixation equipment as a backup, in case ours did have increased from 110 men in one-, two-, and is all designed to require fewer people on the drill
not work for some reason. Today, these jacking four-man rooms to an average of 150 men in floor and to manage operation from the driller’s
and fixation systems are key components used one- and two-man rooms. Likewise, accommo- cabin. The area for the drill floor has grown as
in all Keppel-designed jackup rigs. dations on semisubmersible rigs have been in- well, with derrick-based footing increasing to 36
It is important to note the increased accom- creased to 200 men from 150 men in the past. ft x 36 ft and in some cases 40 ft x 40 ft from the
original 30 ft x 32 ft to accommodate for offline
standbuilding and to accommodate larger set-
back. This all is aimed at increasing productivity.
The hook loads have also increased. Pre-
viously we had 1.5 million pound hook load,
and now it is up to 2.5 million pound hook
load for drilling deeper wells and also to car-
ry heavy casing. Given the high cost of drill-
ing for oil and gas wells, there are certainly
more plans to always make rig operation
more productive.
Offshore: Could you provide an overview
of the R&D work being done in rig designs
to meet today’s drilling requirements?
Aziz: Keppel Offshore & Marine has its
own research and development arms and
technology centers for product development
and process improvement to strengthen its
core competencies in rig building.
The group’s research and development, de-
sign, and engineering efforts are spearheaded
by Keppel Offshore & Marine Technology Cen-
tre (KOMtech) which was set up in 2007; as
well as the creation of the Offshore Technology
Development (OTD) in 1994; the Deepwater
Technology Group (DTG) in 2002; and the Ma-
rine Technology Development (MTD) in 2002.
In addition, these technology units are sup-
Ultra-deepwater ported by established engineering centers in
Singapore, Bulgaria, India, and China. Lever-
evolution personified. aging the time differences of each country,
this global integrated engineering hub enables
Focused. Customized. Optimized.
Keppel Offshore & Marine to work on projects
Pacific Drilling represents the evolution
with higher efficiency and offer our customers
of the deepwater drilling contractor.
reliable services with a quick turnaround.
We have evolved for superior
Much of the group’s success today as total
performance in ultra-deepwater and
solutions provider has to do with the continu-
optimized our processes, procedures
ous investment and building up of technology
and personnel for unparalleled service.
and engineering capabilities over the years. As
Our drillships are customized according
the exploration and development of oil and gas
to our specifications and our company
reserves move to less hospitable places and
personifies excellence. We weren’t
just designed for ultra-deepwater,
becomes more complex, technological capa-
we’re dedicated to it.
bility will be a key differentiator.
Keppel’s technology leadership will posi-
tion us ahead of the game as we continue to
offer value-added solutions that are innova-
tive and cost-effective for customers. To be
more specific, not only we have designed and
built our in-house KFELS B Class, but we
have also developed and built our KFELS B
(Big Foot) Class which has larger spud cans
to reduce bearing pressure and to expand op-
erational coverage in more places, especially
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________

DRILLING RIG REPORT

addition, the level of automation is higher, follow- Rig owners today want Keppel FELS to propose
ing the goal to have fewer workers on the drill a design based on their requirements.
floor. Comparatively, the UK authorities allows Offshore: How has your rig design evolved
for single or double-occupant cabins. in recent years?
Load carrying capacities of semisubmers- Aziz: A good example of how rig design has
ible rigs also have changed over the years, as evolved is our proprietary KFELS B Class rig
these units need to carry more risers and drill design. The year 1997 was significant for Kep-
pipe to accommodate the deeper waters. We pel FELS as it marked our entrance into the
have designed our semisubmersible rigs with world of rig design, acquiring rights to the Fre-
risers to be stored vertically, which helps man- ide & Goldman MOD V and MOD VI jackup
age the size of the rig. rigs. The two jackup models were further
Offshore: How is Keppel FELS accommo- improved upon by our Offshore Technology
dating rig owners designs, or incorporating Development unit and evolved to become Kep-
their own systems? pel’s proprietary KFELS A Class and KFELS G
Aziz: We work hand-in-hand with trendset- Class rig designs. These designs were further
ting customers to get their inputs to further improved upon and gave rise to a comprehen-
improve and refine our products. For instance, sive range of winning jackup models, such as
in July 2010, we entered into a partnership the KFELS B Class, in our technology portfolio.
with Seafox Group, a leading offshore fleet To date, Keppel FELS has delivered a total
owner and operator, to commercialize a new of 33 KFELS B Class jackup rigs to customers
vessel concept for the offshore wind energy operating in different parts of the world. For its
DSS 38 Gold Star, a semisubmersible drilling rig sector based on our jackup technology. environmentally friendly features, the KFELS B
built by Keppel FELS, is performing success- The KFELS MPSEP (multi-purpose self-ele- Class design was also bestowed the prestigious
fully for Petrobras in Brazil. vating platform) is based on our proven jackup Engineering Achievement Award from the In-
designs with further inputs from Seafox to cus- stitution of Engineers Singapore in 2009.
areas where soft soil is predominant. tomize it for the installation and maintenance As for the semisubmersible rigs, we have
In addition, we have also further developed of offshore wind farms, an area in which they developed deepwater semisubmersible (DSS)
KFELS N Class for operations in the Norwe- have substantial operational experience. series. We have built the DSS 51 and DSS 38
gian sector the North Sea. As for the United Overall, the drilling companies are look- for 10,000 ft operations. Each is furnished with
Kingdom sector of the North Sea, we have ing for turnkey contracts to build their rigs. a DP-2 system. Recently we have designed
launched Super A Class design since 4Q 2010. We see the market moving toward a turnkey the enhanced version of the DSS 38 with a
The KFELS N class meets the requirements basis, with rig owners expecting the yards DP-3 dynamic positioning system called the
of the Norwegian Petroleum Safety Authority to provide complete drilling equipment and DSS38E. Trying to keep a rig on location is
and the KFELS Super A class meets the require- system packages, moving away from the tra- a major challenge and providing the state-of-
ments of the UK Health and Safety Environment ditional owner-furnished equipment. the-art product gives the client the confidence
Agency. The Norwegians require the rig to have Keppel FELS is always willing to build a rig that there will be no breakdown when they are
single-occupant cabins for accommodation. In to the owner’s design, but things have changed. performing a major drilling operation. 

_________________

[Link] • July 2011 Offshore 39

DRILLING RIG REPORT

New jackup rigs are more robust

Recent designs have longer legs, can be placed in 575 ft of water

S
everal naval architects and marine Jerry Greenburg
engineers have introduced new Special Correspondent
jackup rig designs that trend toward
larger units with deeper water depth
capabilities, with one design rated for
operations in up to 575 ft (175 m) of water.
Other “new” designs are enhancements and ports the higher loads required for drill-
upgrades of existing units that aim to meet ing operations today while maintaining the
more demanding criteria from operators, industry-preferred footprint of the LeTour-
and to comply with requirements for more neau 116 design.
site assessments and preloading rules and The leg length of the 350-ft (107-m) ver-
regulations worldwide. Some of the more sion is 492 ft (150 m) while the 400-ft (122
notable new designs are detailed below. m) water depth unit has 544 ft (166 m) of leg.
Both units can accommodate 150 people.
BASS design The 229.6 x 210 x 27.9 ft (70 x 64 x 8.5
Among these new designs is the BASS m) hull features aft leg spacing of 142 ft (43
unit from Bennett & Associates, dubbed m) and longitudinal leg spacing of 129 ft (39
BASS 350 and BASS 400. The rig classes are m). The large spud cans are 65.62 ft (20 m)
essentially identical save for the rated water in diameter. The helipad is rated for Sikor-
depth. The BASS class is an independent- sky models S61-N, S-92, or EH-101. The
leg, rack-and-pinion jackup designed for rig’s operational water depth ranges from a Bennett & Associates’ BASS 400 is available in
moderate environments. The design sup- minimum of 30 ft (9 m) to a maximum of 400 350-ft and 400-ft water depth versions.

Jackup foundation site assessment criteria drive some new rig designs
With most of the news in the offshore oil and gas industry to several offshore rigs and platforms by hurricanes Katrina,
about deepwater and ultra-deepwater drilling and production, Rita, and Ivan. The site assessments based on GUMSHOE
and the huge drillships and semisubmersibles being built permitted lowering the loads and required air gaps. Addition-
to meet deepwater exploration demand, it might seem the ally, some jackups also lacked the capability to preload their
shallow-water segment is completely ignored. But this is not foundations to the extent their spud cans were loaded during
the case. these severe storms.
Several naval architects and shipyards have introduced dur- “The situation was not necessarily a result of a structural
ing the past year new jackup rig designs for shallower water. problem but rather a foundation problem,” said Bennett. “The
Among them are Bennett & Associates, Friede & Goldman, and Bureau of Ocean Energy Management, Regulation, and Enforce-
Gusto MSC. While it may seem that if you’ve seen one jackup, ment (BOEMRE) issued stricter environmental regulations that
you’ve seen all jackups, that is hardly the case. Recent jackup require jackups to meet these more stringent criteria. Addition-
designs are larger and more robust for harsh environments, ally, the jackups must have sufficient preload capacity for testing
with longer legs that can put some jackups in as much as 575 ft their foundations to the maximum spud can reactions imposed
of water; enough automation to seemingly rival spacecraft; and during the hurricane season and enough leg to provide air gaps
sometimes with price tags comparable to the rigs themselves. sufficient to clear the maximum wave crest elevations.”
There is some method to the madness of introducing larger In the Gulf of Mexico generally, jackups that were properly
jackup designs and enhanced iterations of basic models. The sited and followed the revised criteria did not have problems,
region where a rig will be marketed is one criterion. The harsh and none were lost during subsequent hurricanes.
North Sea, for example, is essentially a jackup market; although “It seems to say that any rigs that follow the SNAME RP5-5A
floating rigs have been used, they do not provide the best plat- or ISO rules for site specific assessment are going to be safe
forms for drilling high-pressure/high-temperature formations to operate,” said Bennett. “The other piece of the equation is
typical of North Sea gas fields – so larger, more robust jackups that there have been a lot of improvements of drilling equip-
have found a home there. But there are other reasons for new, ment, monitoring systems, and other safety aspects of the
larger, deepwater jackup designs. new classes of jackups. Designers are utilizing new types of
Bill Bennett, chairman of Bennett & Associates, says the 1991 materials, equipment, and new safety systems as well as more
GUMSHOE (Gulf of Mexico Storm Hindcast of Oceanographic powerful design tools and rigorous methodologies for assess-
Extremes) environmental criteria developed by Ocean Weather ing their capabilities.”
for the oil companies and used by drilling contractors to site Bennett also noted that in general, “you find that the new
jackups, resulted in year-round utilization in greater water generations of jackups are truly new and robust and more suit-
depths during hurricane season for jackups in the GoM. Appli- able of withstanding the types of environmental and operation-
cation of the reduced environmental criteria resulted in damage al criteria required to drill in more hostile situations.”

40 Offshore July 2011 • [Link]

DRILLING RIG REPORT

ft with a nominal drilling depth of 35,000 ft BASS class rigs are templates from which
(10,668 m). The cantilever features a drilling the final design can be modified to meet the
envelope of 70 x 30 ft (15 ft to either side of owner’s specifications for efficiency, perfor-
the transom), with a 3,000 sq ft (279 sq m) mance, and capability. Main power is from
cantilever pipe rack (60 x 50 ft) as well as a four Caterpillar 3516C diesel marine gen
3,000 sq ft main deck pipe rack. The rig also sets each rated at 1,800 kW, with space for
has an open deck area of about 3,000 sq ft. a fifth generator. Solids control is accom-
The maximum variable deck load in operat- plished via five shale shakers with mud
ing mode is 8,500 kips, including hookload; cleaner, two 1,000 gpm vacuum degassers,
7,200 kips in storm conditions and during and space, utilities and piping for three de-
transit. canting centrifuges.

(Above) Noble Corp. has ordered four Friede &

Goldman JU3000N design jackups in Singapore.
The rigs are an upgraded and enhanced itera-
tion of the designer’s JU2000E. (Below) Gusto
MSC’s latest CJ jackup is its largest, with a
water depth rating of up to 575 ft.

𰀮𰁐𰁐𰁓𰁊𰁏𰁈𰀍𰀁𰀁
𰀧𰁐𰁖𰁏𰁅𰁂𰁕𰁊𰁐𰁏𰁔𰀍𰀁𰀁𰀥𰁊𰁅𰀁𰁚𰁐𰁖𰀁𰁌𰁏𰁐𰁘𰀠𰀁
𰀁𰀁𰀴𰁖𰁃𰁔𰁆𰁂𰀏𰀏𰀏𰀪𰁏𰁕𰁆𰁓𰀮𰁐𰁐𰁓𰀁𰁉𰁂𰁔𰀁𰁕𰁉𰁆𰀁
𰁍𰁂𰁓𰁈𰁆𰁔𰁕𰀁𰁔𰁕𰁐𰁄𰁌𰀁𰁐𰁇𰀁𰁎𰁐𰁐𰁓𰁊𰁏𰁈𰀁
𰁆𰁒𰁖𰁊𰁑𰁎𰁆𰁏𰁕𰀁𰁊𰁏𰀁𰁕𰁉𰁆𰀁𰁘𰁐𰁓𰁍𰁅𰀏

𰀪𰁏𰁕𰁆𰁓𰀮𰁐𰁐𰁓𰀁𰁉𰁂𰁔𰀁𰁅𰁆𰁔𰁊𰁈𰁏𰁆𰁅𰀁 JU3000N design

𰁎𰁐𰁓𰁆𰀁𰁇𰁐𰁖𰁏𰁅𰁂𰁕𰁊𰁐𰁏𰀁𰁑𰁊𰁍𰁆𰁔𰀁 Noble Corp. ordered four JU3000N jack-

𰀁𰀁𰀁𰀁𰀏𰀏𰀏𰀮𰁐𰁐𰁓𰀁𰀁𰀁𰀁
ups in late 2010/early 2011 at Jurong Ship-
𰁕𰁉𰁂𰁏𰀁𰁂𰁏𰁚𰀁𰁐𰁕𰁉𰁆𰁓𰀁𰁎𰁐𰁐𰁓𰁊𰁏𰁈𰀁 yard in Singapore for delivery beginning
𰁄𰁐𰁎𰁑𰁂𰁏𰁚𰀏 in 4Q 2012 through 1Q 2014. The JU3000N
is an enhanced iteration of Friede & Gold-

𰀁𰀢𰁅𰁗𰁂𰁏𰁕𰁂𰁈𰁆𰁔𰀏
𰀪𰁏𰁕𰁆𰁓𰀮𰁐𰁐𰁓𰀁𰁉𰁂𰁔𰀁𰁅𰁆𰁗𰁆𰁍𰁐𰁑𰁆𰁅𰀁𰁂𰀁 man’s JU 2000E, and, according to Noble,
𰁄𰁖𰁔𰁕𰁐𰁎𰀁𰀗𰀑𰀎𰁕𰁐𰁏𰀁𰁊𰁏𰁍𰁊𰁏𰁆𰀁𰁉𰁆𰁂𰁗𰁆𰀁 “represents the latest generation of high
𰁄𰁐𰁎𰁑𰁆𰁏𰁔𰁂𰁕𰁊𰁐𰁏𰀁𰁔𰁚𰁔𰁕𰁆𰁎𰀏 specification jackup drilling rigs with great-
er capacities and capabilities than most ex-
isting units.”
𰀪𰁏𰁕𰁆𰁓𰀮𰁐𰁐𰁓𰀍𰀁𰁂𰁏𰀁𰀢𰁄𰁕𰁆𰁐𰁏𰀁
In a recent report, the company said that
𰁄𰁐𰁎𰁑𰁂𰁏𰁚𰀍𰀁𰁊𰁔𰀁𰁕𰁉𰁆𰀁𰁍𰁆𰁂𰁅𰁊𰁏𰁈𰀁 jackup fleet utilization overall was about
𰁈𰁍𰁐𰁃𰁂𰁍𰀁𰁎𰁐𰁐𰁓𰁊𰁏𰁈𰀍𰀁 75% but that utilization for the industry’s 29
𰁇𰁐𰁖𰁏𰁅𰁂𰁕𰁊𰁐𰁏𰁔𰀁𰁂𰁏𰁅𰀁𰁔𰁖𰁃𰁔𰁆𰁂𰀁 high-specification jackups was above 90%
and is expected to remain high in coming
𰁔𰁆𰁓𰁗𰁊𰁄𰁆𰀁𰁄𰁐𰁎𰁑𰁂𰁏𰁚𰀁𰁑𰁓𰁐𰁗𰁊𰁅𰁊𰁏𰁈𰀁
years as demand increases. Additionally, the
𰁊𰁏𰁏𰁐𰁗𰁂𰁕𰁊𰁗𰁆𰀁𰁔𰁐𰁍𰁖𰁕𰁊𰁐𰁏𰁔𰀁𰁇𰁐𰁓𰀁𰁓𰁊𰁈𰀁 company said it receives “a lot of inquiries in
𰁎𰁐𰁗𰁆𰁔𰀍𰀁𰁎𰁐𰁐𰁓𰁊𰁏𰁈𰀁𰁔𰁆𰁓𰁗𰁊𰁄𰁆𰁔𰀁 places that we didn’t necessarily target (for
𰁂𰁏𰁅𰀁𰁐𰁇𰁇𰁔𰁉𰁐𰁓𰁆𰀁𰁐𰁑𰁆𰁓𰁂𰁕𰁊𰁐𰁏𰁔𰀁 the rigs).”
𰁊𰁏𰁄𰁍𰁖𰁅𰁊𰁏𰁈𰀁𰁆𰁏𰁈𰁊𰁏𰁆𰁆𰁓𰁊𰁏𰁈𰀁 The 231 x 270-ft (70 x 82-m) rigs will have
a 75 ft (23 m) cantilever reach, 2.5 million lbs
𰁂𰁏𰁅𰀁𰁅𰁆𰁔𰁊𰁈𰁏𰀍𰀁𰁔𰁖𰁓𰁗𰁆𰁚𰀁𰁂𰁏𰁅𰀁 hookload capacity, a high-capacity mud cir-
𰁑𰁐𰁔𰁊𰁕𰁊𰁐𰁏𰁊𰁏𰁈𰀍𰀁𰁇𰁂𰁃𰁓𰁊𰁄𰁂𰁕𰁊𰁐𰁏𰀁𰀁 culating system and a 15,000 psi (103 MPa)
𰁂𰁏𰁅𰀁𰁔𰁖𰁃𰁔𰁆𰁂𰀁𰁊𰁏𰁔𰁕𰁂𰁍𰁍𰁂𰁕𰁊𰁐𰁏𰀏 BOP. The rigs will be capable of off-line pipe
handling and provide accommodations for
up to 150 people. They can operate in up to
400 ft of water and drill to 35,000 ft.
𰁘𰁘𰁘𰀏𰁊𰁏𰁕𰁆𰁓𰁎𰁐𰁐𰁓𰀏𰁄𰁐𰁎
________________ Cost for each rig is about $220 million for

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DRILLING RIG REPORT

Our Tradition
Runs
Deep
In-depth coverage of
offshore oil and gas
industry for more
The range of Gusto MSC’s jackup series, from smallest to largest.
than 56 years the first two units and about $235 million for BOP handling and minimizes deck obstruc-
the second two rigs ordered, according to tion. Additionally, the elevated position of
the company. Costs include project manage- the cantilever minimizes the required air
Drilling and Completion ment, spares, and start up. gap of the hull when drilling over a platform.
Main power is five Caterpillar C-175 16 The X-Y cantilever reach is 100 x 65 ft (30.5
Production Tier II engines. Three National Oilwell Varco x 20 m).
(NOV) mud pumps, five NOV shakers, de- Maersk’s rigs have accommodations for
Subsea sander, desilter and diverter handle the mud 120 people with the quarters wrapped around
circulation and cleaning duties. The NOV the forward leg and the helipad at the for-
Construction and Installation pipe handling system can make up and break ward end of the quarters, resulting in a large
out triple stands. The 210 ft (64 m) derrick free deck area.
Transportation and Logistics with 40 x 45 ft (12 x 14 m) base can rack back Gusto MSC’s latest iteration of the CJ
35,000 ft (10,668 m) of 6 5/8-in. drill pipe and series is its CJ80-X175-A unit, developed as
Geology and Geophysics 9,000 ft (2,743 m) of 9 5/8-in. casing. a result of interest from its customers for a
robust deepwater jackup for Norwegian and
Gusto MSC designs UK waters. The hull measures 328 x 360 ft
Gusto MSC’s jackup designs continue to (100 x 110 m) with 700-ft (213-m) long legs.
grow in number as well as size, designed The design will have a variable deck load ca-
now to operate in the harsh North Sea envi- pacity of up to 12,000 tons.
ronment in up to 175 m (575 ft) water depth Emphasis of the design aims to support
with its recently introduced CJ80 iteration. subsea operations to install subsea christ-
The largest of Gusto MSC’s jackup design mas trees, templates, etc. It will have accom-
currently under construction is its CJ70 modations for up to 150 people.
unit, of which Maersk drilling ordered two This design also features its X-Y cantile-
CJ70-X150-A rigs at Keppel FELS in Singa- ver with a capacity of 1,500 tons over a 100- x
pore for $1.2 billion. 80-ft (30.5 x 24 m) reach. The load can be
n
novatio
seeks
subsea in Maersk’s CJ70 rigs are rated to operate increased to 2,250 tons over an 80- x 80-ft
in up to 500 ft (152 m) of water (450 ft or reach. The CJ80 will be equipped to drill
122 m in North Sea conditions) and to drill with a subsea BOP and marine riser rather
to 35,000 ft. than a surface BOP as is found on most jack-
One unique feature is its X-Y cantilever ups.
Our depth is a tradition system that combines the cantilever and The unit would be equipped with four 2,500
you can count on. drill floor structures into one fixed package kW and two 1,750 kW generator sets in two
that can move longitudinally and transverse- engine rooms. This configuration results in
ly relative to the hull. This means there is no better electrical load sharing and a reduction
[Link] need to disconnect the BOP, cables, hoses,
etc. when moving the drilling package since
of CO2 and nitrous oxide. The rig will have
offline stand building capability, four mud
there are no flexible lines between the can- pumps, and separate oil-base and water-base
tilever and drill floor. The design simplifies mud supply and return systems. 

44 Offshore July 2011 • [Link]

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DRILLING RIG REPORT

Premium jackup fleet Jerry Greenburg

experiences modest growth Special Correspondent

T
he worldwide premium jackup fleet, which includes jackups rated for 375 ft waters.
rated for 350 ft (106 m) of water and greater, grew modestly Greatship Global Energy increased its premium jackup fleet by one
since July 2009 when Offshore’s last survey was taken. The since 2009 with the addition of the GreatDrill Chetna, a KFELS B class rig.
2011 edition shows 13 additional premium jackups delivered This rig is virtually identical to its GreatDrill Chiltra unit that was delivered
over the past two years. Looking forward, however, the 2013 in 2009. The company also has under construction a LeTourneau Super
survey edition is expected to grow significantly as about 50 of the 116E class jackup with delivery scheduled for December 2012.
75 jackups under construction are rated for 350 ft water depths and Perforadora Central took delivery of its Tuxpan jackup in 2010, a
greater. Most of them are scheduled for delivery in 2012 and 2013. LeTourneau Super 116E class rig. The rig is capable of drilling in up
These figures are likely to grow as offshore drilling contractors con- to 375 ft of water.
tinue to order more and larger jackups, which generally take about PV Drilling, a subsidiary of PetroVietnam, took delivery of two
two years to construct. jackups during 2009, both KFELS B class rigs rated for operations
Rowan Co.s accounted for nearly half of the new jackups listed in the in up to 400 ft of water.
2011 survey with six new units in its fleet. These include the Rowan
EXL I, EXL II, and EXL III, all LeTourneau Super 116-E class rigs rated New construction
for 350 ft of water, and the Rowan Stavanger, Viking, and Norway, KFELS It is rare these days to find a drilling contractor ordering a new
N class jackups capable of drilling in up to 400 ft (122 m) of water. The rig rated for less than 350 ft of water. A key reason is the new ISO
Rowan Norway is the contractor’s newest, delivered in June 2011. worldwide criteria being developed for foundation site assessment,
Rowan still has two jackups under construction, the Joe Douglas, rat- as well as new site assessment guidelines and criteria from the Bu-
ed for 400 ft of water and set for delivery in September 2011, and the reau of Ocean Energy Management, Regulation, and Enforcement
Rowan EXL IV, a 350 ft unit scheduled for delivery in November 2011. (BOEMRE) for jackups operating in the US Gulf of Mexico. This
It is uncertain how many additional jackups particularly applies to jackups operating dur-
the contractor might build, with the recent ing the six-month Gulf hurricane season that
sale of its LeTourneau Technologies subsid- runs from June 1 to Nov. 30.
iary and the company’s order for two deepwa- The stricter guidelines and criteria result-
ter drillships. ed in jackups that were properly sited follow-
Seadrill took delivery of the West Callisto, a ing site assessments and sufficient pre-load
KFELS B class jackup in 2010. This year the testing of the seabed foundations to the maxi-
contractor took delivery of the West Elara, a mum spud can reactions to the loads. The
Gusto MSC design CJ70-X150A jackup capa- new generations of jackups are more robust
ble of working in up to about 500 ft (152 m) and more able to meet the environmental and
of water and which is capable of simultaneous operational criteria required to drill in more
drilling and production operations. hostile situations, including during hurricane
Egyptian Drilling also added a jackup to its season in the mild environment GoM.
fleet since 2009, the Setty, a sister rig to its Sneferu, Noble Corp. ordered four 400 ft Friede &
both Baker Marine BMC 375 designs rated for Goldman JU3000N jackups in Singapore earlier
375 ft (114 m) of water. Egyptian Offshore Drill- this year. Maersk Drilling has two Gusto MSC
ing, not to be confused with Egyptian CJ70-X150MD design rigs under con-
Drilling, added two rigs to its fleet, the struction at Keppel FELS in Singapore
company’s first two jackups. The El for delivery in 2013 and 2014. These
Qaher I and II are BMC 375 designs rigs are rated to drill in up to 500 ft of
water in harsh environments such as
(Above) Rowan Companies’ EXL II, a the North Sea, their target market.
LeTourneau Super 116E design, was Other offshore drilling contrac-
delivered in 2010. The rig is rated to tors building large jackups include
drill in 350 ft of water. (Below) Rowan’s Atwood Oceanics with three PPL Pa-
latest rig deliveries are its KFELS-N cific Class rigs rated for 400 ft of wa-
class units delivered in 2010 and 2011. ter, the Mako, Manta, and Orca; Ensco
These rigs are rated to drill in up to 400
with two 400-ft rated jackups under
ft of water. This is the KFELS-N class
rig Rowan Viking being dry towed to
construction; and Transocean, which
location. The company has two ad- ordered a Pacific Class rig at PPL as
ditional jackups under construction, well as two KFELS B class rigs.
the Joe Douglas, a LeTourenau 240-C Additional information can be
class unit rated for 400 ft of water, and found in the Premium jackup drilling
a LeTourneau Super 116E for up to 350 rigs poster contained within this is-
ft of water. sue of Offshore. 

46 Offshore July 2011 • [Link]

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DRILLING RIG REPORT

New rig orders

keep on coming
As long as day rates for new rigs justify construction,
the present cycle appears likely to continue

Bruce Miller
ODS-Petrodata

O
rders for new mobile offshore drill-
ing units (MODUs) are surging.
The upswing began in October 2010
with orders for a total of five jackup
rigs placed by established drilling
contractors. At that point, the price of West
Texas Intermediate crude was 9% higher
than in June 2010, and was on its way to
an almost 20% increase by the end of the
year. The combined effects of higher than
expected crude oil prices, operators prefer-
ring newer, more efficient drilling units, and
some degree of perceived stabilization in the
global financial markets have propelled 2011
to become a record year in terms of the es-
timated total value of MODUs ordered with
six months yet to go in the year.

Market overview
The downturn in demand that began in
late 2008 caused concern. This was espe-
cially so since the downturn coincided with
the arrival of a number of rigs that had been
ordered in 2005 and 2006. This combination
of events led to a rapid decline in working
utilization – the most rigorous indicator of
the health of the offshore drilling market.
Deliveries continued, raising the total num-
ber from 588 in January 2006 to 653 in Janu-
ary 2009. By January 2010, the total num-
bers of MODUs had reached 692, although
orders for new rigs had completely dried up
by then. From January 2006 until January
2010, the fleet increased by 20%, with more
units still under construction.
What became apparent with the influx of
the new rigs was the impact of enhanced finding work, even in the oversupplied mar- floating rig and tender-assist markets. The
technology on the MODU market. The new- ket at that time, and pushing the older less difference in marketability and day rates be-
er rigs, which in almost all cases have con- capable rigs to the sidelines. This trend was tween the older and the newer rigs became
siderably higher specifications and capabili- especially apparent in the jackup market but pronounced during 2010, and in late 2010 to
ties than the bulk of the existing fleet, were was also the case, to a lesser degree, in the a new building cycle got underway.

[Link] • July 2011 Offshore 49

DRILLING RIG REPORT

Continuing
new orders
The estimated capex for newbuild rigs re-
covered from a low of $2.7 billion in 2009,
to $24.7 billion year to date in 2011, a figure
that already exceeds the previous record set
in 2007. What is causing this huge upswing?
Apparently a feeling that today’s prices for
state of the art rigs, which are consider-
ably lower than those seen just three years
ago, are a temporary phenomenon. In 2011
alone, orders have been orders placed for 27
high-specification ultra-deepwater drillships
and 29 jackup rigs. Surprisingly, only two
semisubmersibles orders have been placed
in 2011, and these were for Sevan’s cylindri-
cal units rather than for more conventional
rigs. Tender assist rigs have seen four or-
ders placed this year, in addition to the two
rigs currently on order or under construc-
tion. This series of orders will raise the ten-
der assist fleet from the current 32 to 38 by
the end of 2013.
In terms of expenditure the focus clearly
remains on drillship orders, which in 2011
accounted for $16.58 billion of the estimated
total. Roughly one fourth, $4.64 billion, will
come from by Sete Brasil, which ordered sev-
en drillships to be built and operated in Brazil
for Petrobras. Petrobras reports plans to ten-
der for another 21 deepwater drilling rigs also
to be constructed in Brazil.

Impact
on day rates
Since 2005, the industry has placed more
orders than at any period since the 1970s
and the question becomes: Will there be
enough demand for these rigs to keep them
working at attractive day rates?
All day rates suffered with the decline in
the price of crude oil that started in mid-
2008. However day rates for floating rigs
have more or less stabilized since early 2010
and have even increased for deepwater float-
Day rate trends over the past decade for global deepwater rigs (drillships and semisubmersibles
ers. Although still far from the peak in 2008,
that can operate in water depths of more than 3,000 ft), midwater rigs (drillships and semisubmers-
day rates for these rigs are at healthy levels ibles that can operate in water depths up to 3,000 ft), and jackups in two major markets.
compared to prior to 2006, and apparently
still provide a sufficiently good rate of return
for rig owners to expand their fleets. prices are headed and of course these two warm-stacked, or cold-stacked – in essence
For jackup rigs in the selected markets are closely related, but contractors appear out of the market at least temporarily. Of
the day rates have fallen quite a bit, but the convinced that rates will at least stay near these, only seven are less than 10 years old,
rates are for all jackups. The newer or premi- current levels with increases a distinct pos- and these seven rigs are hot-stacked – the
um rigs earn a substantial day rate incentive sibility. highest state of readiness – and four of them
over the older commodity type rigs. have their next contract in hand. As long as
Rates for the US Gulf of Mexico jackup Conclusion day rates for new rigs justify their construc-
market, which is predominantly driven by Are drilling contractors building too tion, the present building cycle appears like-
natural gas prices, peaked in early 2006, and many rigs? Perhaps in terms of the num- ly to continue. 
the continuing weakness since then reflects bers involved, except the rigs that are be-
low gas prices and competition from on- ing built and delivered seem to be the rigs
shore shale plays where gas can be cheaper the operators prefer, which means that the
to find and develop. new rigs are working at the expense of the About the Author
Trying to predict where day rates will go less capable units. Currently there are 166 Bruce Miller is a senior consultant in ODS-Petrodata’s
is no easier than trying to forecast where oil drilling rigs of all types – either hot-stacked, Houston office.

50 Offshore July 2011 • [Link]

_________

2011 Worldwide MODU construction/new order survey as of June 1, 2011.

Rated Delivery
Owner or manager/ water date Shipyard
Rig name Rig type depth (ft) Status from yard* Shipyard location
Aker Drilling
Aker Rig 1 Drillship 12,000 Under construction 4Q 2013 Daewoo South Korea
Aker Rig 2 Drillship 12,000 Under construction 4Q 2013 Daewoo South Korea
Asia Offshore Drilling
Asia Offshore Rig 1 Jackup 350 Under construction 2Q 2012 Keppel FELS Singapore
Asia Offshore Rig 2 Jackup 350 Under construction 2Q 2013 Keppel FELS Singapore
Atwood Oceanics
Atwood Condor Semisubmersible 10,000 Under construction 2Q 2012 Jurong Shipyard Pte Ltd Singapore
Atwood Advantage Drillship 10,000 Under construction 4Q 2013 Jurong Shipyard Pte Ltd Singapore
Atwood Mako Jackup 400 Under construction 4Q 2012 PPL Shipyard Singapore
Atwood Manta Jackup 400 Under construction 1Q 2013 PPL Shipyard Singapore
Atwood Orca Jackup 400 Under construction 3Q 2013 PPL Shipyard Singapore
Clearwater Capital
Clearwater Rig 1 Jackup 350 Under construction 1Q 2013 Keppel FELS Singapore
Clearwater Rig 2 Jackup 350 Under construction 2Q 2013 Keppel FELS Singapore
Construtora Norberto Odebrecht
P-59 Jackup 350 Under construction 1Q 2012 Sao Roque do Paraguacu Brazil
P-60 Jackup 350 Under construction 2Q 2012 Sao Roque do Paraguacu Brazil
COSL
COSL Innovator Semisubmersible 1,640 Under construction 3Q 2011 Yantai Raffles China
COSL Promoter Semisubmersible 1,640 Under construction 2Q 2012 Yantai Raffles China
CPTDC
CPTDC JU TBN 1 Jackup 300 Under construction 3Q 2011 CPLEC China
Delba
Delba VII Drillship 10,000 Under construction 1Q 2012 Samsung Heavy Industries South Korea
Delba VIII Drillship 10,000 Under construction 2Q 2012 Samsung Heavy Industries South Korea
Delba V Semisubmersible 8,000 Under construction 2Q 2012 COSCO China
Delba VI Semisubmersible 8,000 Under construction 2Q 2012 COSCO China
Diamond Offshore
Ocean Blackhawk Drillship 12,000 Under construction 4Q 2013 Hyundai Heavy Industries South Korea
Ocean Black Hornet Drillship 12,000 Under construction 2Q 2014 Hyundai Heavy Industries South Korea
Ocean TBN Drillship 12,000 Under construction 2Q 2014 Hyundai Heavy Industries South Korea
Discovery Offshore
Discovery Offshore Rig 1 Jackup 400 Under construction 1H 2013 Keppel FELS Singapore
Discovery Offshore Rig 2 Jackup 400 Under construction 2H 2013 Keppel FELS Singapore
Drilling & Offshore
D&O Rig 1 Jackup 350 Under construction 4Q 2012 ABG Shipyard India
D&O Rig 2 Jackup 350 Under construction 4Q 2012 ABG Shipyard India
Dynamic Offshore
Dynamic Offshore Rig 1 Jackup 350 Under construction 1Q 2013 Keppel FELS Singapore
Ensco
ENSCO 8504 Semisubmersible 8,500 Under construction 3Q 2011 Keppel FELS Singapore
ENSCO 8505 Semisubmersible 8,500 Under construction 1Q 2012 Keppel FELS Singapore
ENSCO 8506 Semisubmersible 8,500 Under construction 3Q 2012 Keppel FELS Singapore
ENSCO DS-6 Drillship 12,000 Under construction 4Q 2011 Samsung Heavy Industries South Korea
ENSCO DS-7 Drillship 12,000 Under construction 2H 2013 Samsung Heavy Industries South Korea
ENSCO TBN 1 Jackup 400 Under construction 2Q 2013 Keppel FELS Singapore
ENSCO TBN 2 Jackup 400 Under construction 4Q 2013 Keppel FELS Singapore
Essar Oilfields Services
Essar JU TBN 1 Jackup 350 Under construction 2Q 2012 ABG Shipyard India
Essar JU TBN 2 Jackup 350 Under construction 4Q 2012 ABG Shipyard India
Etesco
ET-VIII Drillship 10,000 Under construction 1Q 2012 Samsung Heavy Industries South Korea
Fred Olsen
Fred Olsen Rig 1 Drillship 12,000 Under construction 3Q 2013 Hyundai Heavy Industries South Korea
Greatship Global
Greatship Global Rig 1 Jackup 350 Under construction 3Q 2012 Lamprell UAE
Gulf Drilling International
Gulf Drilling Rig 1 Jackup 400 Under construction 3Q 2013 Keppel FELS Singapore
Gulf Drilling Rig 2 Jackup 400 Under construction 3Q 2014 Keppel FELS Singapore
IPC
La Muralla IV Semisubmersible 10,000 Under construction 3Q 2011 Daewoo South Korea

52 Offshore July 2011 • [Link]

Conference & Exhibition

21 - 23 February 2012
KLCC Convention Center
Kuala Lumpur, Malaysia
[Link]

DEVELOPING ASIA’S
ENERGYRESOURCES
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networking with peers and meeting with the supplier market, PennWell is committed to making
sure your company has the ability to stay abreast of key market trends.

DRILLING RIG REPORT

2011 Worldwide MODU construction/new order survey

Rated Delivery
Owner or manager/ water date Shipyard
Rig name Rig type depth (ft) Status from yard* Shipyard location
Island Offshore
Island Innovator Semisubmersible 2,300 Under construction 4Q 2011 COSCO Zhoushan China
Japan Drilling
Japan Drilling Rig 1 Jackup 400 Under construction 1Q 2013 Keppel FELS Singapore
Jasper Offshore Investments
Jasper Rig 1 Jackup 350 Under construction 2H 2012 Keppel FELS Singapore
Jasper Rig 2 Jackup 350 Under construction 1H 2013 Keppel FELS Singapore
Maersk Drilling
Maersk Rig 1 Jackup 500 Under construction 4Q 2013 Keppel FELS Singapore
Maersk Rig 2 Jackup 500 Under construction 2Q 2014 Keppel FELS Singapore
Maersk Rig 1 Drillship 12,000 Under construction 3Q 2013 Samsung Heavy Industries South Korea
Maersk Rig 2 Drillship 12,000 Under construction 4Q 2013 Samsung Heavy Industries South Korea
Momentum Drilling
Yantai Raffles JU TBN 4 Jackup 300 Under construction 4Q 2011 Yantai Raffles China
Yantai Raffles JU TBN 2 Jackup 300 Under construction 2Q 2011 Yantai Raffles China
Yantai Raffles JU TBN 3 Jackup 300 Under construction 4Q 2011 Yantai Raffles China
National Drilling
National Drilling Rig 1 Jackup 200 Under construction 2Q 2012 Lamprell UAE
National Drilling Rig 2 Jackup 200 Under construction 3Q 2012 Lamprell UAE
Noble
Noble Globetrotter I Drillship 10,000 Under construction 3Q 2011 STX Heavy Industries China
Noble Globetrotter II Drillship 10,000 Under construction 2Q 2013 STX Heavy Industries China
Noble Bully 1 Drillship 8,200 Under construction 3Q 2011 Keppel FELS Singapore
Noble Bully II Drillship 8,200 Under construction 3Q 2011 Keppel FELS Singapore
Noble Drillship TBN 2 Drillship 12,000 Under construction 4Q 2013 Hyundai Heavy Industries South Korea
Noble Drillship TBN 3 Drillship 12,000 Under construction 2Q 2014 Hyundai Heavy Industries South Korea
Noble Jackup TBN 1 Jackup 400 Under construction 4Q 2012 Jurong Shipyard Pte Ltd Singapore
Noble Jackup TBN 3 Jackup 400 Under construction 3Q 2013 Jurong Shipyard Pte Ltd Singapore
Noble Jackup TBN 4 Jackup 400 Under construction 1Q 2014 Jurong Shipyard Pte Ltd Singapore
Noble Drillship TBN 1 Drillship 12,000 Under construction 2Q 2013 Hyundai Heavy Industries South Korea
Noble Jackup TBN 2 Jackup 400 Under construction 2Q 2013 Jurong Shipyard Pte Ltd Singapore
Ocean Rig
Ocean Rig Mykonos Drillship 10,000 Under construction 3Q 2011 Samsung Heavy Industries South Korea
Ocean Rig TBN 1 Drillship 12,000 Under construction 3Q 2013 Samsung Heavy Industries South Korea
Ocean Rig TBN 2 Drillship 12,000 Under construction 4Q 2013 Samsung Heavy Industries South Korea
Odebrecht
Norbe X Drillship 10,000 Under construction 1Q 2012 Daewoo South Korea
Norbe XI Drillship 10,000 Under construction 1Q 2012 Daewoo South Korea
Odfjell Drilling
Deepsea Metro II Drillship 10,000 On order 4Q 2011 Hyundai Heavy Industries South Korea
Pacific Drilling
Pacific Khamisn Drillship 10,000 Under construction 2Q 2013 Samsung Heavy Industries South Korea
Pacific Sharov Drillship 10,000 Under construction 3Q 2013 Samsung Heavy Industries South Korea
Perforadora Central
Perforadora Central Rig 1 Jackup 375 Under construction 1Q 2013 Keppel FELS Singapore
Petroserv
Petroserv Drsh TBN 1 Drillship 10,000 Under construction 1Q 2012 Daewoo South Korea
Petroserv Semi TBN 1 Semisubmersible 10,000 Under construction 4Q 2012 Daewoo South Korea
PetroVietnam
PetroVietnam JU TBN 1 Jackup 200 Under construction 1Q 2012 PV Shipyard Vietnam
Prospector Offshore Drilling
Prospector Rig 1 Jackup 400 Under construction 4Q 2012 Dalian Shipbuilding China
Prospector Rig 2 Jackup 400 Under construction 1Q 2013 Dalian Shipbuilding China
Prospector Rig 3 Jackup 400 Under construction 3Q 2013 Dalian Shipbuilding China
Prospector Rig 4 Jackup 400 Under construction 3Q 2013 Dalian Shipbuilding China
PV Drilling
PV Drilling Tender TBN 1 Tender 600 Under construction 4Q 2011 Keppel FELS Singapore

54 Offshore July 2011 • [Link]

EXPERIENCE.
DEDICATION.
VISION.

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DRILLING RIG REPORT

2011 Worldwide MODU construction/new order survey

Rated Delivery
Owner or manager/ water date Shipyard
Rig name Rig type depth (ft) Status from yard* Shipyard location
Rosneft
Bolshaya Medveditsa Semisubmersible 6,562 On order 4Q 2014 Zvezda Shipyard Russia
Rowan
Joe Douglas Jackup 400 Under construction 3Q 2011 LeTourneau USA
Rowan EXL IV Jackup 350 Under construction 1Q 2012 Keppel AmFELS USA
Rowan Drillship TBN 1 Drillship 12,000 Under Construction 4Q 2013 Hyundai Heavy Industries South Korea
Rowan Drillship TBN 2 Drillship 12,000 Under construction 2Q 2014 Hyundai Heavy Industries South Korea
Saudi Aramco
Saudi Aramco Rig 1 Jackup 400 Under construction 3Q 2012 Keppel FELS Singapore
Schahin
Schahin Drsh TBN 1 Drillship 10,000 Under construction 2Q 2011 Samsung Heavy Industries South Korea
Schahin Drsh TBN 2 Drillship 10,000 Under construction 4Q 2011 Samsung Heavy Industries South Korea
Seadrill
West Capricorn Semisubmersible 10,000 Under construction 4Q 2011 Jurong Shipyard Pte Ltd Singapore
West Leo Semisubmerisble 10,000 Under Construction 4Q 2011 Jurong Shipyard Pte Ltd Singapore
West Auriga Drillship 12,000 Under construction 1Q 2013 Samsung Heavy Industries South Korea
West Vela Drillship 12,000 Under construction 2Q 2013 Samsung Heavy Industries South Korea
West Tellus Drillship 12,000 Under construction 3Q 2013 Samsung Heavy Industries South Korea
West Castor Jackup 400 Under construction 1Q 2013 Jurong Shipyard Pte Ltd Singapore
West Tucana Jackup 400 Under construction 4Q 2012 Jurong Shipyard Pte Ltd Singapore
West Telesto Jackup 400 Under construction 4Q 2012 Dalian Shipbuilding China
West Oberon Jackup 400 Under construction 1Q 2013 Dalian Shipbuilding China
T15 Tender Barge 6,500 Under construction 1Q 2013 COSCO Zhoushan China
T16 Tender Barge 6,500 Under construction 3Q 2013 COSCO Zhoushan China
T17 Tender Barge 6,500 Under construction 1Q 2013 COSCO Zhoushan China
Seadrill Tender Tender Barge 5,000 Under Construction 2Q 2013 Keppel FELS Singapore
Sete Brasil
Sete Rig 1 Drillship 10,000 Under construction 2015 EAS Shipyard Brazil
Sete Rig 2 Drillship 10,000 Under construction 2015 EAS Shipyard Brazil
Sete Rig 3 Drillship 10,000 Under construction 2015 EAS Shipyard Brazil
Sete Rig 4 Drillship 10,000 Under construction 2015 EAS Shipyard Brazil
Sete Rig 5 Drillship 10,000 Under construction 2015 EAS Shipyard Brazil
Sete Rig 6 Drillship 10,000 Under construction 2015 EAS Shipyard Brazil
Sete Rig 7 Drillship 10,000 Under construction 2015 EAS Shipyard Brazil
Sevan Drilling
Sevan Brasil Semisubmersible 7,874 Under construction 1Q 2012 COSCO Nantong China
Sevan UDW Semisubmersible Under construction 4Q 2014 COSCO Nantong China
Sevan UDW Semisubmerislbe Under construction 3Q 2013 COSCO Nantong China
Songa Offshore
Songa Eclipse Semisubmersible 7,500 Under construction 2Q 2011 Jurong Shipyard Pte Ltd Singapore
Standard Drilling
Standard Rig 1 Jackup 400 Under construction 2H 2012 Keppel FELS Singapore
Standard Rig 2 Jackup 400 Under construction 2H 2013 Keppel FELS Singapore
Standard Rig 3 Jackup 400 Under construction 2H 2013 Keppel FELS Singapore
Standard Rig 4 Jackup 400 Under construction 1H 2014 Keppel FELS Singapore
Standard Rig 5 Jackup 400 Under construction 1H 2014 Keppel FELS Singapore
Stena
Stena DrillMAX ICE Drillship 7,500 Under construction 4Q 2011 Samsung Heavy Industries South Korea
Swecomex
Independencia 1 Jackup 400 Under construction 3Q 2011 Operadora Cicsa Mexico
Transocean
Transocean Rig 1 Jackup 350 Under construction 1Q 2013 Keppel FELS Singapore
Transocean Rig 2 Jackup 350 Under construction 3Q 2013 Keppel FELS Singapore
Vantage Drilling
Cobalt Explorer Drillship 12,000 Under construction 3Q 2013 Daewoo South Korea
Tungsten Explorer Drillship 12,000 Under Construction 2Q 2013 Daewoo South Korea
* Newbuilds Only, TBN = To Be Named

56 Offshore July 2011 • [Link]

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conference & exhibition

11-13 october 2011
hilton riverside | new orleans | usa

30 years of covering the

deep issues

Exhibitor
prospectus

Owned And Produced By: Presented By: Supported By:

Deep Offshore Technology ®

[Link]

About
Deep Offshore Technology International (DOT)
For 30 years Deep Offshore Technology International has been showcasing pioneering technology that has been shaping
the future of the deep and ultra-deepwater industry. 2011 DOT International will return to be an annual event. It will
showcase the most innovative technologies designed to withstand hostile and ultra deepwater environments. Discussing
the specific challenges of the region and the latest groundbreaking solutions.

The 29th Deep Offshore Technology International held at the Amsterdam RAI, Amsterdam; experienced an impressive
attendance of more than 1080 visitors from 44 countries.

DOT puts you at the heart of the leading industry forum which attracts the key industry experts and decision makers from
the major E&P companies.

Don’t miss your chance to join the distinguished list of exhibitors, delegates and visitors.

Quick Stats from

Deep Offshore Technology International 2010
1080 attendees from 53 countries
450+ conference attendees
72% of attendees stated that the exhibition met or exceeded expectations
62% of attendees plan to attend DOT 2011
63% of exhibitors established contacts for future sales
65% of conference attendees rated the conference as good to excellent
85% of attendees think attending DOT is important for meeting business objectives

WHY
EXHIBIT?
Put your products in front of the people that matter

DOT International offers a unique platform to reach your target audience. Each year deepwater management, engineering
& technical professionals attend to source new products and update their knowledge on key topics affecting the industry.

• Unique access to deepwater procurement professionals • Target particular market areas

• Generate new leads and reinforce existing relationships • Meet customers and prospects face to face

• Increase company and brand awareness • Stay ahead of the competition

• Increase product and services awareness • Direct access to an international audience of high level
decision makers
• Launch new products and services

MANAGEMENT &
TECHNICAL CONFERENCE
With the continued development of the conference programme, DOT International provides unrivalled opportunities to
share your knowledge, experience and ideas with the deep and ultra-deepwater industries.

2011 Topics include:

• Field Development • Benchmarking

• Risers & Riser Technology • Drilling Economics

• Subsea Technology • Human Resource & Training

• Subsea Boosting & Processing • Integrated Solutions

AUDIENCE
STATISTICS
DOT International attracts the highest level of attendees including Ministers of Energy, all the industry’s major players and
leading manufacturers offering an unrivalled audience under one roof. Unlike most events in the sector, DOT International
attendees are solely focused on deep and ultra-deepwater technology.

11%
Primary Job Function/Responsibility
Management (CEO, Pres, VP)
Engineering/Technical/Geoscience
19%
Other (Please Specify) 45%

Purchasing/Consulting
Superintendent/ Field Professional/Foreman
23%

Type of Company or Organization

Service/Supply 5% 2%

Engineering/Construction
9%
Oil/Gas Company 22%

Other (Please Specify)

Consulting Company 13%
Contractor
Government/Library/Education 19%
Financial
15%

Areas of Interest
15%
Subsea Technology
Floating Production Systems
2%
Flowlines & Pipelines 4%
Field Development 5%
16%
5%
Construction / Installation
6%
Inspection & Monitoring
Drilling / Well Construction 6%
12%

Flow Assurance
Mooring / Station-Keeping 6%
11%
Field Development
7%
Shipyard / Fabrication Yard 10%
Exploration 10%
Other
10%

Purchasing Authority
Recommend
34%
None
24%
Approve
Specify

32%

EXHIBITOR
PACKAGE
Exhibition stands are charged per square foot (min. 10 x10)
Space Only: $50.00 per sq. ft
Exhibitor receives complimentary with each 10x10 booth unit:
• One full conference registration
• Two complimentary booth staff registrations.

DirectEventConnect
In addition to the exhibit space above, a compulsory basic enhanced listing on the Exhibition website’s interactive online
community - DirectEventConnect - will be charged at a flat rate of $275.00
The online listing includes:
• Descriptions and photos of up to 5 product listings and categories
• A 35-word company description, 25 keywords, and full contact details
• 35-word standard listing in the official print show guide
This fully searchable community will give your buyers access to your information and provide an opportunity for you to
communicate with potential customers before the Exhibition.
Enhanced Exhibitor Listings on DirectEventConnect Upgrades
(Price is flat fee and inclusive of Basic Listing fee.)
Gold Package $495.00
Includes Basic, plus:
• Online – 7 product listings and categories
• 75-word company description, 25 keywords
• “New promotion” category for one (1) product
• Print - official show guide – bold text 75-word company description and company logo
Platinum Package $995.00
Includes Basic, plus:
• Online – 10 product listings and categories,
• 500-word company description, 25 keywords,
• 10 uploads and links, “new product promotion” category for two (2) products,
• Print - official show guide – bold text 150-word company description and company logo)

EXCLUSIVE DISCOUNT PACKAGE FOR OPERATOR DELEGATES

$3,900 – unlimited number of delegates
Visit website for more details and how to register
* OPP registration is checked to confirm applicant is from an approved operator in order to qualify for discount

Sponsorship
Opportunities
Increase your exposure at Deep Offshore Technology International 2011. Sponsorship opportunities offer a great way to
enhance the profile and awareness of your company.

Whether your company is well established in the region or seeking new business opportunities, we can tailor a unique
sponsorship package that meets with your event objectives. Contact us to discuss your sponsorship requirements.

Examples of sponsorship available:

Host Event Sponsor Conference Proceedings Sponsor Aisle Sign Sponsor

Networking Reception Sponsor Registration Sponsor Speakers Appreciation Gifts

Delegate Lunch Sponsor Press Room Sponsor Show Guide Bellyband

Coffee Break Sponsor Bottled Water Sponsor Visitor Bag Sponsor

Delegate Bag Sponsor Conference Journal Fast Track Registration Sponsor

Cyber Café Sponsor Speakers Breakfast Meetings Online Registration Page Sponsor

Continental Breakfast Sponsor T-Shirt Sponsor

Session Tracks Sponsor Technology Sponsor

For more Information please contact:

Exhibit sales and corporate sponsorship contacts

Jane Bailey Ana Monteiro Sue Neighbors

Netherlands, Northern Europe & Southern & Eastern Europe & Africa Americas
Middle East T: +44 (0) 1992 656 658 T: +1 713 963 6256
T: +44 (0) 1992 656 651 F: +44 (0) 1992 656 700 F: +1 713 963 6212
F: +44 (0) 1992 656 700 E: anam@[Link] E: sneighbors@[Link]
E: janeb@[Link]

B R A Z I L & L AT I N A M E R I C A

Latin American countries opening

to outside operators
Non-traditional areas starting to look offshore

W
ith oil reserves second only to Jose Valera bid process is to begin in September and
the Middle East and also with Andrew Stanger conclude in December.
significant gas reserves, Latin Mayer Brown Under the concession contracts, the con-
America has become a natural tractor pays a signature bonus, a royalty at a
focus of oil and gas exploration rate of 5-10%, and various taxes, which pay-
in recent years. As the countries in this ments combined allow an operator to keep
region increasingly turn their attention to Brazil’s traditional concession contract 25-30% of gross revenues. These contracts
their offshore prospects, which range from regime will remain in place outside of the generally impose a schedule of minimum
Brazil’s massive fields to lesser known areas “strategic areas.” Concessions granted in work obligations with an exploration phase
elsewhere, all are welcoming the technol- the pre-salt region prior to the 2009 enact- lasting three to seven years.
ogy, capital, and expertise of foreign comment of the new law are grandfathered. Concession contracts for the 11th round
panies but under terms and conditions that Brazil has recently announced its 11th bid are likely to require financial guarantees
vary greatly from country to country. round, which covers 174 blocks (87 of which and will allow termination of the contract
offshore) along the equatorial coast outside for failure to comply with the minimum ex-
Brazil of the pre-salt region. As such, the areas will ploratory program. Although payment of 1%
Brazil has the potential to become one of be subject to the concession contracts. The of gross revenues from a field as a special
the world’s leading oil producers, with participation has long been a part of
recently discovered offshore pre-salt these contracts, the ANP has indicat-
reserves estimated to exceed 50 Bboe. ed that under the concessions to be
Petrobras, the giant state-run oil compa- awarded, half of this amount must be
ny, plans to spend $224 billion over the invested in previously approved proj-
next five years with the goal of doubling ects in Brazilian accredited universi-
its oil production and export capacity. ties and institutes.
Brazil’s oil and gas future is offshore. No bid rounds have been announced
According to the Brazilian National Agen- yet for the award of the production
cy of Petroleum, Gas and Biofuels (ANP), sharing contracts in the pre-salt re-
about 92% of the country’s proved oil region. The government reportedly is
serves and 82% of its proved gas reserves still working on the model form PSC.
are offshore. About 90% of the country’s
current oil production is from offshore. Mexico
Brazil currently hosts 33% of the world’s Awash for decades in easily-accessi-
fleet of floating production units. ble oil, Mexico’s treasury is grappling
Brazil has taken steps to take more with declining oil production, particu-
control of the pre-salt areas, which larly at the massive offshore Cantar-
were discovered in 2007 when Petro- ell field, which now produces only a
bras first drilled in the Tupi (now Lula) quarter of what it did in 2004. Many
field. Through the recent enactment of expect that Mexico’s oil future lies in
a separate legal regime applicable to the deep waters of the Gulf of Mexico,
the development of “strategic areas,” a where the expense and complexity of
loosely defined term that includes the drilling operations has limited the abil-
pre-salt regions, Brazil now mandates ity of state-owned monopoly Pemex to
that private companies hold an interest expand its operations there.
in a production sharing contract under Mexico historically has shunned
which Petrobras must serve as the op- international E&P companies, but
erator and also hold a minimum 30% now in an effort to draw more for-
working interest. Reports indicate that Pemex may increase its offshore eign technology and know-how, it has
The award of these production sharing development plans to address Mexico’s narrowing sought to create a friendlier contract
contracts will be made competitively on the gap between oil production and consumption. EN- regime. However, this effort is beset
basis of the lowest bid for profit oil share. SCO 98, a LeTourneau Class 82-SD-C self-elevating with political challenges and even the
Petrobras itself may be awarded contracts cantilever jackup rig, is currently working for Pemex watered-down reform passed in 2008
without a competitive bidding process. offshore Mexico. Photo courtesy Ensco. faced protracted legal challenges. The

[Link] • July 2011 Offshore 65

B R A Z I L & L AT I N A M E R I C A

ultimate result was a law permitting Pemex private companies. The government has re- Colombia
to enter into E&P contracts under which it duced royalty and income tax rates on non- Colombia has devoted considerable effort
would reimburse costs and pay a fixed fee associated natural gas projects and allows to increasing oil and gas exploration and
in cash per barrel of delivered production. private companies to own all of the interests production by attracting foreign participa-
Incentive-based bonuses in cash may also be in projects. However, PdVSA reserves the tion, and the results are impressive. The
paid under certain specified circumstances. right to take over up to a 35% carried work- country is on target to achieve in the short
The law in Mexico does not allow for own- ing interest. term its goal of 1MMboe/d of production.
ership in Mexico of locally produced oil, nor While non-associated gas projects ap- E&P contracts are granted by a state licens-
compensation on the basis of the value of pear to offer some promise, there are disad- ing agency (ANH) pursuant to competitive
production. This precludes all forms of pro- vantages to operating in Venezuela, in that bidding and there is no requirement for an
duction sharing arrangements and compen- PdVSA would constitute the only outlet for association with a state-owned company.
sation in kind. offshore gas production. The fiscal regime consists of royalty and
After delays due to legal challenges to As for exports, the government has ad- income tax. State-controlled Ecopetrol com-
implementing regulations, Mexico has been vanced plans to build an LNG facility for petes in bid rounds on an equal footing with
cautious in rolling out the new contracts. which offshore producers would serve as private companies.
The first tender was announced last March, dedicated feed gas suppliers. Plans for pipe- The government has recently finished
and it covers only three aging onshore fields line gas exports through Colombia have signing contracts after the 2010 bid round.
in need of enhanced recovery methods. For missed several target dates. Same plans This last round included the most offshore
those blocks, the contractor will be paid through Brazil have been shelved. As for blocks of any bid round. No new offshore
only a per-barrel fee, supplemented by a the domestic market, natural gas is heav- drilling has taken place in Colombia since
partial recovery of costs. No incentives are ily subsidized and available prices may not 2008. At present offshore production in Co-
being offered. The Calderon administration compensate for production costs and risks. lombia is limited to the Chuchupa gas field
remains optimistic that these contracts will (Caribbean coast) operated by Chevron.
successfully lure foreign companies and has Argentina
announced plans to use them in other bid- Argentina’s onshore oil and gas fields Peru
ding rounds scheduled for next year. have declined rapidly over the last few years, Much of Peru’s proven oil and gas wealth
The true test will come when Mexico causing the country to assess its offshore is onshore, but recent offshore activity sug-
seeks bids for the deepwater areas on which potential. Argentina is a newcomer to deep- gests some potential for larger finds.
much of its energy future depends. Pemex water drilling. When the state-owned energy Although its current offshore production
officials say they plan to announce the first company, ENARSA, and YPF, the largest in the northwest is relatively small, some
tender for offshore blocks in the first half producer in the country, announced plans to have speculated that, by attracting invest-
of 2012 and expect to use incentive-based drill exploration wells off of the coast of Bue- ment, the country could substantially in-
contracts. It remains to be seen how the nos Aires province in 2010, it was the first crease offshore production.
offshore E&P industry will respond to con- major new offshore exploration project for As in Colombia, E&P contracts are grant-
tracts with very limited upside to compen- the country in more than 30 years. Argen- ed by a state licensing agency (Perupetro)
sate for exploration risk. tina says it will license 31 offshore blocks pursuant to competitive bidding and there
this year in the hopes of discoveries similar is no requirement for an association with
Venezuela to Brazil’s. a state-owned company. The fiscal regime
Venezuela’s proved oil and gas reserves Jurisdiction over the country’s oil and consists of royalty and income tax. State-
dwarf those of other Latin American coun- gas resources has shifted to the provinces, owned Petroperu competes on an equal foot-
tries. Although the Chavez administration is although offshore areas beyond 12 nauti- ing with private companies. 
regarded widely as unpredictable and less cal miles from the coast are subject to fed-
than friendly to foreign companies, several eral jurisdiction and, unless an exploration
international oil companies have taken the permit was previously granted to a private The authors
long view and invested heavily in the country. holder, all permits in the area are held by Jose Valera is a partner in the
In Venezuela, separate rules apply to oil con- ENARSA. Private companies must associate Houston office of Mayer Brown’s
tracts compared to gas contracts. With large, with ENARSA to carry out E&P operations Corporate & Securities practice.
well-developed crude oil reserves, Venezu- in federal waters. He focuses his practice on domestic
ela is generally more exacting in granting oil Argentina grants exploration licenses and international energy transac-
tions, and has more than 25 years
contracts. All oil projects must be carried out (with the acreage diminishing at intervals)
of legal experience representing oil,
by a joint venture company majority-owned that may be followed by a production con- gas, and electric energy companies
by Petroleos de Venezuela S.A. (PdVSA), the cession lasting 25 years. A royalty rate of throughout the United States,
state-owned oil company. Historically, Venezu- 12% paid in cash (or in kind, if requested Central America, South America, Africa, Asia, and
ela affords little stability, with tax and royalty by the government entity) is typical, but the Caribbean.
rates liable to jump and the threat of national- depends on the location of the reserves and
ization looming when a licensee does not ac- may be reduced to as low as 5% under some Andrew J. Stanger is an associate
cept changes to its contract. circumstances. To encourage development in the Houston office of Mayer
In contrast to Venezuela’s oil reserves, of crude oil reserves, Argentina adopted the Brown’s Corporate & Securities
non-associated gas fields are severely un- “Oil Plus” plan in 2008. This provides export practice. He represents public and
derdeveloped and found largely offshore, duty credits to companies who increase pro- private companies in a variety of
which combine to give foreign oil compa- duction and reserves by a certain threshold. corporate transactions, including
nies more leverage. The law relating to the In turn, the “Gas Plus” plan offers to exempt mergers and acquisitions, securi-
ties offerings and general corporate
development of non-associated natural gas is production from certain new discoveries
matters.
intended to provide more favorable terms to from local price controls.

66 Offshore July 2011 • [Link]

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B R A Z I L & L AT I N A M E R I C A

Pemex looks to develop deepwater assets

Foreign assistance needed for deepwater drilling,
subsea hardware, floating production systems

M
exico’s offshore oil and gas pro- Michael Robertson vate companies. As a result, Pemex received
duction comes from five main Douglas-Westwood greater autonomy under the reforms, in-
areas – Campeche Bay, Burgos cluding the ability to issue its own debt and
basin (gas), Golden Lane, Tabas- establish more flexible mechanisms for pro-
co, and Veracruz, all of which lie curement and investment.
in the Gulf of Mexico. Nearly 30 oil fields Recent financial results illustrate a net
are located in Campeche Bay, the largest is the largest and most active group within loss of $3.8 billion despite an increase in
of which, Cantarell, was discovered in 1976. Pemex, with approximately 50,000 employ- income from crude exports given strength-
The Cantarell complex was originally the ees spread between their Mexico City head- ened oil prices. This compares starkly with
largest offshore oil-producing complex in quarters and four operating groups (“re- announced profits from Brazil’s Petrobras
the world, second only to the onshore Gha- gions”) based in Villahermosa, Ciudad del and is indicative of Pemex’s monopolistic
war field in Saudi Arabia, and accounted Carmen, and Poza Rica. Each “region” has status and use as a direct funder of the coun-
for upwards of 60% of Mexico’s production. a number of asset teams (“activos”) related try’s economy. The majority of revenue is
Lying in shallow water depths of 35 to 40 to a field or project. In addition, each region injected directly into the economy through
m (115 to 131 ft) and producing from more contains a standard series of departments: tax.
than 30 platforms, Cantarell, among other planning, maintenance, operating coordina-
major fields, is now in decline. At the same tion, HSE, finance and administration, and Production
time, the necessity to offset the declining drilling. In 2010, PEP spent $17.4 billion, Offshore oil production in Mexico peaked
production profile, particularly amid robust approximately 83% of Pemex’s total invest- in 2004 at around 3 MMb/d. However, much
commodity prices, is more important than ments during that year. of this production came from the Cantarell
ever before. The country’s reserve base also In 2008, new legislation was put into place field which, as previously noted, is now in
has decreased. According to Pemex, proven that aimed to reform the country’s oil sec- decline. In 2010, the Cantarell complex
reserves have fallen for a twelfth consecu- tor and to reduce the decline in Pemex’s produced around 600,000 MMb/d, approxi-
tive year to 13.8 Bbbl. production. Several administrative changes mately 22% of Pemex’s crude oil production.
were made, such as adding new seats to In the 1990s, Pemex began a number of
Petróleos Mexicanos Pemex’s administrative board for outside projects to reverse the decline in the Can-
The national oil company Petróleos Mexi- industry experts; creating a new advisory tarell complex. A gas lift system, installed in
canos (Pemex) controls the oil and gas sec- board designed to provide independent co- 2005, initially stabilized output at around 1
tor with some production handled through ordination of long-term energy strategy; and MMb/d. The company also stepped up its
multiple services contracts with interna- the establishment of a new hydrocarbons drilling and maintenance programs. This in-
tional companies. Pemex’s budget must be agency to regulate the sector. The reforms cluded the construction of maintenance and
approved by the Parliament each year. included the ability for Pemex to create workover platforms, and the drilling of more
Pemex Exploration & Production (PEP) incentive-based service contracts with pri- than 2,000 wells. All programs aimed to slow
the rate of decline on the Akal sector, which
accounts for 90% of the Cantarell complex’s
output.
Efforts to stem production decline were
successful, with flat output reported be-
tween 2009 and 2010. But the longevity of
this plateau is likely to be short-lived without
further measures to allow foreign involve-
ment. A review of these incentive-based
contracts was publicized in March for small
onshore fields, with the intention of using
this as a trial run prior to the potential for

Despite the production declines, exploration

activity has significantly increased in Mexico
over the last decade.

68 Offshore July 2011 • [Link]

_____________________________________

B R A Z I L & L AT I N A M E R I C A

opening larger offshore production licenses Pemex has announced plans to award $5 In wake of the Macondo incident, the
within the Gulf of Mexico. Additionally, in billion worth of platform construction con- National Hydrocarbons Commission has un-
May 2011, Pemex stated that it may issue tracts over the next two years. The 50 new veiled new safety procedures for deepwater
bonds of up to $3 billion to the international production platforms will be installed on areas which follow similar guidelines set by
market – possibly from as early as May 16. Campeche Bay on fields including Ayatsil the US government. Pemex now must prove
Pemex is undergoing plans to increase and Tsimin. Pemex estimates that those two that it has adequate insurance to cover any
production from other areas, some of which fields contain reserves of up to 622 MMbbl. loss or compensation from a deepwater ac-
are detailed below. Despite these develop- cident. While such incidents are infrequent,
ments, it is likely that Mexico’s offshore pro- Deepwater development the variance in deepwater drilling experi-
duction will decline further, with Datamoni- Historically, the lack of foreign invest- ence between Pemex and a company such
tor predicting that crude production will fall ment and expertise has forced Pemex to as BP is considerable. If Pemex wishes to
to 1.6 MMb/d by 2015 and 1.3 MMb/d by rely on largely shallow water prospects, avoid such a disaster, technical expertise
2020, dictated in part by recent cuts in po- and only a limited volume of deep explora- from more experienced foreign players
tential production levels on the Chicontepec tion and production has been carried out to would prove valuable.
prospect. Pemex recently reduced expecta- date. However, the majority of prospective Besides deepwater drilling, the construc-
tions of oil production here to 150,000 b/d reserves lie in deep waters and it has been tion and installation of subsea production
down from 660,000 publicized in 2007. the focus of recent company strategy to ex- and processing equipment is a key area
plore and develop the huge potential volume where foreign participation is likely. In its
Drilling activity of hydrocarbons off the Mexican shelf. It is deepwater strategy presentation, Pemex
Despite the production declines, explora- expected that following recent announce- highlighted that the procurement of subsea
tion activity has significantly increased in ments, Pemex will begin to offer deepwater trees, risers, umbilicals, flowlines, and sepa-
Mexico over the last decade. In 2003, it was drilling contracts to foreign players by early ration and injection systems is high on its
estimated that around 24 exploration and ap- 2012, although the eagerness of foreign par- list of priorities. In 2007, FMC Technologies
praisal (E&A) wells were drilled offshore. ticipation is yet to be determined. supplied subsea trees for the Cantarell proj-

Despite the production declines, exploration activity has

significantly increased in Mexico over the last decade.
This number rose to 44 through 2011, a drill- The NOC’s desire to enter the deepwa- ect while companies such as Aker Solutions,
ing level which is hoped to be maintained ter market was recently confirmed with the Cameron, Dril-Quip, and GE Oil & Gas have
over the period to 2015 as Pemex seeks new signing of a five-year contract of $850 million experience in other Latin American mar-
prospects for development to counteract its for SeaDrill’s new Pegasus ultra-deepwater kets. It is possible that Pemex will follow a
declining production. The company plans rig. similar trend to Petrobras by offering multi-
to invest a reported $23 billion this year to The first deepwater exploration started year frame agreements for certain subsea
boost oil production. in 1999 with Chuktah-201 at 513 m (1,683 ft) equipment.
Around 50 development wells are drilled and in 2000 with Nab-1 at 681 m (2,234 ft). Pemex is likely to follow Petrobras’ trend
each year, the majority in shallow waters, Deepwater exploration moved into a higher of utilizing FPSOs as early production sys-
many of which are surface completed to gear in 2005 with Noxal at 689 m (2,261 ft), tems and long-term infrastructure on deep-
fixed infrastructure. Notable subsea devel- also known as Deep Coatzacoalcos. This water fields. However, unlike Brazil, Mexi-
opments include Noxal, Lalail, Labay, Leek, was the first of a series of 10 exploration can yards do not have FPS construction
and Lakach – all of which lie in the deepwa- wells Pemex planned to drill in the area off capabilities; therefore such vessels will need
ter Coatzacoalcos basin. Veracruz state. to be sourced from foreign shipyards. Pe-
Pemex recently announced plans to in- The Lakach-1 wildcat well drilled in 2006 mex currently operates the Yuum K’ak’naab
crease the number of drilling rigs under op- at 988 m (3,241 ft) is considered a much FPSO on its Ku-Maloob-Zaap shallow water
eration in Mexican waters and assuming this better proposition. Initial output from the development; the rig is leased from BW Off-
goes ahead (indications appear positive), Lakach field is expected in 2014 – with its shore.
the volume of both exploration and develop- 1.4 tcf of reserves likely to be developed in
ment activity may increase. In March 2011, conjunction with satellite fields including Conclusions
the company agreed to lease seven jackup Ahawbil, Labay, Piklis, and Kuyah. Pemex is investing heavily in the explora-
drilling rigs from Noble Corp. with dayrates Another possible deepwater development tion and development of its shallow water
ranging from $58,000 to $100,000. In addi- is the Lalail prospect which lies in water fields, despite significant production de-
tion, the company has extended the leases depths of 792 m (2,598 ft). Lalail is expected cline from many of its mature basins. It is
of 25 rigs currently under contract, many of to come onstream in 2015 and may well be the company’s assets in the deepwater Gulf
which are shallow water jackup rigs similar tied back to a floating production platform. of Mexico, however, that hold the key to in-
to those leased from Noble. Pemex’s plans During 2011, Pemex expects the Bicente- creasing future output. Given Pemex’s rela-
to lease, rather than buy these rigs, reduces nario rig to be drilling in water depths be- tive inexperience in the sector, considerable
lead times and allows the company to step tween 940 and 2,933 m (3,084 and 9,623 ft). foreign expertise will likely be required,
up more quickly its drilling campaign. In to- The semisubmersible is managed by Indus- especially in key areas such as deepwater
tal, around 40 rigs are said to be required trial Perforadora de Campeche and is con- drilling, subsea hardware and floating pro-
over the next few years. tracted to 2016 at $530,000/day. duction systems. 

70 Offshore July 2011 • [Link]

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B R A Z I L & L AT I N A M E R I C A

Statoil transfers proven Norwegian techniques

to draw out Peregrino’s heavy crude
Nick Terdre
Contributing Editor

T
he start-up of the Peregrino heavy oil
field in Brazil’s Campos basin in April
marked a major milestone in Statoil’s
international ambitions. Peregrino is
the company’s largest operated field
outside Norway and the first it has brought
onstream in Brazil. Development of Per-
egrino, which contains 14º API crude, also
benefited from Statoil’s heavy oil expertise.
“This is a very significant step in the fur-
ther development of the Statoil group,” says
Thore E Kristiansen, senior vice president
and head of the South America and Sub-Sa-
Peregrino has been developed with two drilling/wellhead platforms delivering production to an
haran Africa region. “Peregrino is the biggest FPSO. (Source: Statoil)
international field that Statoil operates today.
The project has been a very purposeful part Sea, which came onstream in 2003. and on course to reach the 100,000 b/d peak
of developing the company outside Norway.” “We saw that by applying our technologi- within 12 months.
The field, discovered by Petrobras in 1994, cal skills, particularly with respect to drilling The field is in about 120 m (393 ft) of water
subsequently was licensed to a series of in- horizontal wells, and our competence in in- in the Campos basin, 85 km (53 mi) from the
ternational oil companies which appraised creased oil recovery (IOR) techniques, we coast of Rio de Janeiro state. It has been de-
the find in the early years of the new century. could double recovery on Peregrino com- veloped with two wellhead/drilling platforms
In 2005, Norsk Hydro acquired EnCana’s 50% pared with what the then owners were plan- about 10 km (6.2 mi) apart, which send pro-
stake. At the time, Peregrino was operated by ning,” says Kristiansen. “The key thing we duction to an FPSO stationed in-between. In
Kerr McGee, which in 2006 was taken over did was to add more water-handling capac- 2007, a front-end engineering design (FEED)
by Anadarko. In 2008, Statoil, following its ity and lengthen the horizontal wells to give study for the development was awarded joint-
merger with Hydro’s oil and gas division the more reservoir contact.” ly to South Atlantic Holding and Mærsk Oil.
previous year, bought Anadarko’s stake and As a result, the expected recovery rate has This was followed shortly by the signing
became the sole licensee and operator. been raised to 20%. Statoil is confident that of a contract with Mærsk Contractors, now
Even before then the company had an the in-place volumes amount to 2.3 Bbbl, ac- Mærsk FPSOs, for the provision and opera-
active role in preparing the development cording to Kristiansen. It is less sure about tion of an FPSO for a firm 15-year period.
plan, which was sanctioned by the Brazil- the recoverable reserves, which are esti- The contract includes options for up to an-
ian authorities in 2007. One of the strengths mated at 300-600 MMbbl. It is not uncom- other 15 years. The FPSO, Mærsk Peregrino,
brought to the merger by Hydro was its ex- mon to have a large range for recoverables at was converted from a newbuild VLCC tank-
perience in developing the heavy oil Grane this stage, he says. There are several factors er, Mærsk Nova, at the Keppel FELS yard in
field in the Norwegian sector of the North which underlie this uncertainty. Singapore. It has 1.6 MMbbl storage capac-
The main reservoir being developed in ity, production capacity of 100,000 b/d of oil
this first phase covers an area of 535 sq km and 7.3 MMcf/d of gas, and liquids handling
(206 sq mi). Moreover, the thickness and capacity of 350,000 b/d. The 12,500-metric
distribution of the sand bodies is uncertain, ton (13,779-ton) topsides consist of 15 mod-
and on top of that some parts of the reser- ules and there are accommodations for 100
voir are below seismic resolution, so that re- personnel.
liable data will become available only when Work at the Keppel yard included fitting a
these parts are drilled. Prior to start-up, pro- submerged turret production and mooring
duction experience was limited to a single system provided by APL, at the time a sub-
10-hour production test, so there is still a lot sidiary of BW Offshore. The topside process
to be learnt about the field’s production be- modules were supplied by J Ray McDermott.
havior, Kristiansen says. The FPSO arrived on the field Dec. 31 last
year. It is held in place by 10 chain and wire
Thore E Kristiansen, Statoil’s senior VP and
Production facilities mooring lines attached to 90-metric ton (99-
head of the South America and Sub-Saharan
Peregrino came onstream through just ton) piles. The mooring operation was per-
Africa region. (Photo: Statoil) one well, but production now is ramping up formed by Aker Marine Contractors.

[Link] • July 2011 Offshore 73

B R A Z I L & L AT I N A M E R I C A

The two wellhead platforms were fabricated by Kiewit in Corpus

Christi, Texas. Each has a topside of about 8,200 metric tons (9,039
tons) dry weight supported by a 100-m (328-ft) tall jacket weigh-
ing 6,700 metric tons (7,385 tons). The platforms were installed in
March 2010 by Heerema Marine Contractors’ crane-barge Hermod.
Operations, maintenance and modification services are provided by
Wood Group.
Each wellhead platform connects to the FPSO via two oil produc-
tion pipelines and an injection water pipeline, while two power and
signal cables also run from the FPSO to each platform. Pipelay and
cable lay was performed by Subsea 7. Peregrino B platform, with the Mærsk-operated Peregrino FPSO in the
background. (Photo: Øyvind Hagen/Statoil)
Reservoir challenge
A total of 37 wells are planned, 30 horizontal producers and seven device that can distinguish between high-viscosity heavy oil and low-
water injectors. The drilling program is being executed by drilling viscosity water and gas, opening for the former and closing down to
contractor Archer. the latter. The system, undergoing pilot testing on the NCS, could
“The reservoir is rather unconsolidated and the reservoir sec- prove valuable tool not only in Peregrino but also in other heavy oil
tions are quite thin – drilling is a challenge,” Kristiansen says. “How- fields which Statoil develops in future.
ever, so far it’s going well for us.” The IOR program will be implemented in stages, starting next
In May the drilling program was close to delivering the longest year with multilateral drilling. The company hopes that these mea-
open-hole gravel-packed horizontal sections ever drilled in Brazil – sures will help it towards its internal stretch target of up to 30% re-
1,300 m (4,265 ft) – and the plan is to incorporate even longer sec- covery on Peregrino.
tions, expanding the use of this technology. Statoil is no longer the sole Peregrino licensee. Just days after
Each producer is fitted with an electric submersible pump to start-up, it completed a deal involving the sale of a 40% stake in the
boost the wellstream flow to the surface. To aid processing on the field to the Chinese state company Sinochem for a cash payment of
FPSO, the crude is heated from an arrival temperature of 60-66º $3.1 billion. The transaction confirmed the high quality of the Per-
C (140-151º F) to 130-150º C (266-302º F), and the stabilized oil is egrino asset and reflected the added value Statoil had brought to the
stored at 65-70º C (149-158º F). development.
Local content of 35% was achieved in the development, which sat- “This was a very important step to prove to the world our ability
isfied the license requirements, according to Kristiansen. However, to take on a technological challenge and develop shareholder value,”
demands for more local content lie ahead for future projects – the says Kristiansen.
requirement in the latest Brazilian licenses to be awarded is 65%,
he says. Additional potential
Statoil also achieved a satisfactory safety performance. As well as optimizing recovery from the main field, Statoil has be-
“We put a lot of emphasis on HSE and a strong safety culture, gun to prove up further resources in the area. In April it announced
and trained 1,100 or more offshore workers in the Statoil way of a discovery at Peregrino South where a gross 130-m (426-ft) oil col-
safety,” he says. “Overall we are very happy with our HSE perfor- umn was proven in the Carapebus formation. The semisubmersible
mance – we ended up with a serious injury frequency of 0.6 per mil- Blackford Dolphin rig immediately started drilling an appraisal well.
lion work-hours, and no fatalities, in a project which took 24 million When this is finished, it is scheduled to drill an appraisal well on
work-hours.” Peregrino South-West, which was discovered in 2007. If these wells
The environmental strategy calls for emissions to both sea and air come in as planned, Kristiansen says, there should be enough in
to be limited as far as possible. Produced water is reinjected into the place for a second phase of development.
reservoir, along with treated seawater, to help maintain reservoir There is also further potential in the main field. Below the main
pressure. Gas is used as fuel on the FPSO and there is no permanent reservoir in the Carapebus lies the carbonate Macae formation in
flaring. which a significant quantity of crude has been identified. During
Production and drilling are managed by a process of integrated the next two years, a long-term production test will be carried out in
operations, including a real-time link with Norway. Collaboration the Macae to establish whether it should be brought into permanent
rooms are in use around the clock and vital production and well data production.
are monitored in real time.
Wider ambitions
IOR strategy Aside from Peregrino, Statoil holds eight exploration licenses off
Once full production is achieved, Statoil plans to implement a se- Brazil, three of which it operates, and on one of which it plans to drill
ries of IOR measures. The first of these is multilateral wells, which an exploration well later this year. The company would like more
it uses extensively on the Norwegian continental shelf (NCS) and in acreage, Kristiansen adds, and looks to participate in the next licens-
which technology it can lay claim to being the world leader. These ing round expected to get under way this fall.
will be the first multilateral wells in Brazil. Though Brazil and Norway are in many ways very different,
The second IOR measure will be polymer flooding to improve the Statoil has various affinities with its counterpart Petrobras – both
effect of water sweep. This is a proven technique for onshore fields, are national oil companies which pursue their exploration and pro-
and in 2010 Statoil ran a successful pilot on the Heidrun field in Nor- duction activities in a pioneering spirit.
way. Polymer flooding also is being piloted on Total’s Dalia field off “We’re both very focused on technology development and when
Angola, where Statoil is a partner. it comes to subsea production systems we are first and second in
Finally, there is the autonomous inflow control device – AICD – the world. We have a technical cooperation agreement which goes
of which Statoil has developed and patented its own version. The back quite a few years and which is working very well,” Kristiansen
AICD, installed as part of the well completion, is in effect a “smart” says. 

74 Offshore July 2011 • [Link]

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B R A Z I L & L AT I N A M E R I C A

Pre-salt plays buoy Brazil’s

offshore development plans
A final agreement on royalty distribution is expected this year,
to be followed by an 11th auction round for exploration blocks

I
ncreasing domestic oil production has Bruce Beaubouef fields is 8.3 Bboe – 6.5 Bboe for Tupi and 1.8
been a long-term goal of the Brazilian Managing Editor billion for Iracema.
government, and recent discoveries Petrobras plans to develop its major
of large offshore, pre-salt oil deposits pre-salt assets in three discrete phases: ex-
could transform Brazil into one of the tended well tests; pilot projects; then large-
largest oil producers in the world. It is es- scale production through multiple, duplicate
timated that Brazil has 12.9 Bbbl of proven low the ocean surface under a thick layer of salt. FPSO facilities. The Tupi pilot project began
oil reserves, the second-largest in South Following Tupi, numerous additional pre- production at 100,000 b/d in 4Q 2010.
America after Venezuela. salt finds have dotted the Santos basin. These In its 2010-2014 business plan, Petrobras
The offshore Campos and Santos ba- include Iracema, Carioca, Iara, Libra, Franco, plans to invest $33 billion in pre-salt explora-
sins, located off of the country’s southeast and Guara. Additional pre-salt discoveries tion and production activities to achieve an
coast, hold the majority of Brazil’s proven also are found in the Campos and Espirito oil production target of close to 4 MMb/d by
reserves. More than 90% of Brazil’s oil pro- Santo basins. Estimates for the total pre-salt 2020. More than a quarter of this target is to
duction is offshore in very deepwater, and resources vary. Some analysts place total ex- come from pre-salt oil.
consists of mostly heavy grades. Five fields tent of pre-salt recoverable oil and natural gas
in the Campos basin (Marlim, Marlim Sul, reserves at more than 50 Bboe. Pre-salt natural gas
Marlim Leste, Roncador, and Barracuda) Last December, Petrobras submitted a Along with their potential to significantly
account for more than half of Brazil’s oil declaration of commerciality to Brazil’s Na- increase Brazil’s oil production, the pre-salt
production. These Petrobras-operated fields tional Petroleum, Natural Gas and Biofuels areas also are thought to contain sizable
each produce between 100,000 and 400,000 Agency (Agência Nacional do Petróleo, Gás natural gas reserves as well. According to
b/d. Natural e Biocombustíveis, or ANP) for the Petrobras, Tupi alone could contain 5-7 Tcf
International oil companies also play a Tupi and Iracema fields, and renamed the of recoverable natural gas, which if proven,
role in Brazilian production. The Shell-op- fields Lula and Cernambi, respectively. The could increase Brazil’s total natural gas re-
erated Parque de Conchas project and the total recoverable reserve estimate for these serves by 50%
Chevron-operated Frade project are
expected to achieve production levels Challenges and
of 100,000 b/d and 68,000 b/d, respec- Rio de
Janeiro
opportunities
tively. Brazil’s pre-salt discoveries have trans-
In general, recent exploration ef- formed the nature and focus of its oil
forts offshore Brazil have yielded mas- BM-S-10
BR 65%
sector, and the potential impact of these
sive discoveries of pre-salt oil fields, BM-S-11 discoveries upon world oil markets is
BR 65%
and the prospects for significant devel- significant. However, considerable chal-
opment opportunities have already led lenges still confront those who would
to a number of new plans, programs, develop and produce these reserves.
BM-S-8
and development activities. BR 66% The significant drilling depths and pres-
sures involved represent severe technical
Pre-salt oil hurdles that must be overcome. Further,
A consortium of Petrobras, BG Group, Iara the scale of the proposed expansion in
and Petrogal discovered the Tupi field in Parati production will also stretch Petrobras’ ex-
2007. Tupi contains substantial reserves Tupi ploration and production resources, and
in a pre-salt zone 18,000 ft (5,486 m) be- Carioca
the nation’s infrastructure in general.
Bem-te-vi
Guara
BM-S-21 Regulatory reforms
Petrobras plans to develop its major BR 80% BM-S-24 In addition to the technical chal-
pre-salt assets in three discrete phases: Azulão BR 80%
Caramba lenges, there are some statutory ones
extended well tests, pilot projects, then
large-scale production through multiple,
BM-S-9
BR 45%
as well, but Brazil seems to be making
BM-S-22
duplicate FPSOs. Map courtesy EIA. BR 20% progress on this front, too. The gov-
ernment released a proposed regula-

76 Offshore July 2011 • [Link]

HILANDERS
The North Sea, 56 40.41 N, 2 56.19 E, 4:15 PM

With nasty corrosive fluids constantly tormenting

his control lines, Ola Hansen is really worried.

You are welcome to visit us

at the Offshore Europe 2011
in Hall 3, Stand 3E100

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and responsible for subsea and downhole operations – then you imaginable.
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B R A Z I L & L AT I N A M E R I C A

and temperature of the well as determined in the drillstem test. The

well is 105 km (65 mi) off the coast of the state of Rio de Janeiro at
a water depth of approximately 150 m (492 ft). Diamond Offshore’s
Ocean Quest semisubmersible rig initiated drilling activities in this
location this past January.
And there is activity on other fronts as well. BP recently an-
nounced it received final approval to complete the acquisition of
Devon Energy’s interests in 10 exploration and production blocks
off- and onshore Brazil. Regulatory approvals came through from
Brazil’s ANP; these were needed to conclude the agreement first
announced in March 2010.
BP will gain interests in eight offshore license blocks, in water
depths ranging from 330-9,100 ft (100-2,780 m). The Campos basin
blocks include the Polvo field, currently producing around 25,000
b/d of oil. BP will become operator of Polvo, and also of Campos
basin blocks BM-C-32 (containing the Itaipu discovery), and BM-C-
On June 3, Petrobras christened the platform P-56, at the BrasFELS Ship-
34 (consisting of C-M-471 and C-M-473, and containing the Fragata
yard, in Angra dos Reis (state of Rio de Janeiro). With capacity to process discovery).
100,000 b/d and to compress 6 MMcm/d of gas, the P-56 will operate in Additionally, it will operate Camamu-Almada basin block BM-
the Marlim Sul field development Module 3, in the Campos basin, Rio de CAL-13, and receive non-operating interests in Campos basin blocks
Janeiro. Photo courtesy Petrobras. BM-C-30 (containing the Wahoo discovery), BM-C-35, and the Xer-
elete discovery (formerly the BC-2 block). Most of Devon’s employ-
tory framework for the pre-salt reserves in August 2009. The frame- ees in Brazil are expected to transfer to BP.
work consists of four pieces of legislation. The first two elements In April, Petrobras announced an oil discovery in the Campos basin
were signed into law in July 2010. The first creates a new agency, pre-salt at well 6-AB-119D-RJS drilled in the Albacora field, 107 km
Petrosal, to administer new pre-salt production. The second allows (66.5 mi) off the coast and only 3.2 km (2 mi) from the FPSO P-31. The
the government to capitalize Petrobras by granting the company 5 discovery was made by the semisubmersible Ocean Concord.
Bbbl of unlicensed pre-salt oil reserves in exchange for larger own- Preliminary estimates indicate an economically recoverable po-
ership share. tential of 350 MMbbl of light oil. Drilled at a water depth of 380 m
The other two bills, establishing a new development fund to man- (1,247 ft) it reached TD of 4,835 m (15,863 ft). An oil column of 241
age government revenues from pre-salt oil and laying out a new m (791 ft) was found, of which 104 m (342 ft) are from the carbonate
production sharing agreement (PSA) system for pre-salt reserves, reservoirs of the Macabu formation, with porosity around 10%.
passed the Brazilian congress in December 2010. In contrast to the Whether to conduct a long-duration test to investigate the pro-
earlier concession-based framework, Petrobras will be the sole oper- duction behavior of this new accumulation will be decided after the
ator of each PSA and would hold a minimum 30% stake in all pre-salt assessment of the cased-hole drillstem tests program.
projects. Some analysts fear that the new system’s increased level of Also in April, Petrobras reported that it had started an extended
state involvement and drain on Petrobras’ resources could slow the well test (EWT) in the northeastern part of Lula field, in the Santos
development of these resources. basin pre-salt reserves, about 300 km (186 mi) off the coast of Rio
Debate on the issue of royalty distribution among Brazilian states de Janeiro. The EWT is under way on the BW Cidade de São Vicente
is expected to continue well into 2011. Once a final agreement is in FPSO, anchored in 2,120 m (6,955 ft) of water. Estimated output is
place, Brazil is expected to hold an 11th auction round for explora- about 14,000 b/d.
tion blocks sometime this year. The information gathered during the Lula Nordeste EWT will
help in project development for the final production system to be
Development plans set in Lula field under the name Lula Nordeste Pilot, and run on the
Early efforts are under way to develop the pre-salt, and several op- Cidade de Paraty FPSO. The Lula Nordeste EWT project is owned by
erators and contractors (in addition to Petrobras) are making plans a consortium formed by Petrobras (operator, with 65% interest), BG
and moving forward with projects to bring the oil and gas to market. Group (25%), and Galp Energia (10%).
In May, it was announced that a combination of government and Other technical advances also are being pursued to promote pre-
private investors had formed a new company to build offshore rigs salt development. In May, Petrobras signed an agreement with Ja-
for Petrobras. The company, Sete Brasil SA, will build seven rigs ac- pan Oil, Gas, and Metals National Corp. to start a feasibility study on
cording to Petrobras, with the first scheduled to be available in 2015. using flexible pipes for pre-salt oil production. The study is sched-
The new company will partner with Estaleiro Atlantico Sul shipyard uled to conclude at the end of 2014. After technical evaluation of
to build the rigs. These will be the first ever fabricated in Brazil. the study, the possibility of establishing a production plant in Brazil
Sete is owned by Brazilian banking groups Santander, Bradesco, will be examined. The study will include a consortium of Japanese
BTG Pactual, and Caixa Economica Federal as well as Brazilian companies including Furukawa Electric Co. Ltd.
pension funds Previ, Petros, Funcef, Valia, and Lakeshore Financial More recently, Petrobras approved the bidding process to award
Partners, Petrobras said. Petrobras will own less than 10% of Sete. contracts for multiple offshore drilling rigs to be built in Brazil. Each
Also in May, OGX Petróleo e Gás Participações S.A. reported that rig will get a leasing contract with the successful bidder and an op-
it has found hydrocarbons in the Albian section of well 1-OGX-30- eration service contract. Companies can bid for one or more rigs up
RJS in block BM-S-58, offshore Brazil. The well is in shallow water to a total of 21 units. Certification of minimum domestic content is
over the Santos basin. A drillstem test was performed on the hydro- required. Petrobras says this is part of its plan to contract as many
carbon column in Albian carbonates. OGX says the find is contigu- as 28 new ultra-deepwater drilling rigs for, among other things, pre-
ous to the Belém accumulation in the same block. The next step is salt field exploration. As mentioned, Sete will build the first seven of
production testing with equipment designed to match the pressure these rigs. 

78 Offshore July 2011 • [Link]

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6 - 8 September

GEOLOGY & GEOPHYSICS

Borehole seismic while drilling can

give accurate, high-resolution data
A real time look ahead of the bit reduces uncertainty

Editor’s note: This is the third of a Bob Radtke detected tars in the GoM. New downhole
three-part series on seismic while drill- Technology International Inc. sonic source technology offers the potential
ing. Part I reviews the primary objec- to avoid these costs.
tives for employing SWD services in For deepwater operations it has been
critical offshore wells. Part II focuses established conclusively that the source-
on the history of seismic while drilling at-surface SWD mode is currently the only
technology beginning when the only when combined with underbalanced drill- complete and economically acceptable deep-
SWD services available used the noise ing), and the very important avoidance of water SWD solution for supply of seismic in-
generated by a drill bit as the downhole blowouts. Extensive data analysis and inter- formation ahead of the bit. This service was
seismic source up to technologies pretation software and services are available first provided by Schlumberger in 2003, and
currently being used. Part III describes from several service companies to utilize the recently by Baker Hughes, and Halliburton.
in more detail recent developments additional data from SWD. 3D-VSP is a standard commercial service
for SWD services, including source-at- With current and future developments, offered worldwide. The service is used off-
surface SWD and a new generation of
an operator will be able to detect in real-time shore in high-risk drilling programs, but it
source-at-drill bit SWD systems.
drilling hazards created by unknown pore is expensive and generally not affordable

E
pressures, undrillable tars located in salt, onshore. For exploration, the drilling op-
ven with today’s modern seismic ac- and difficult to drill rubble zones. There are eration must be stopped while the wireline
quisition, processing, and interpreta- examples of $5 million to $55 million being geophones, and, in some cases recording
tion technology, a geological prog- spent on remediation after drilling into un- tools, are run into the hole. A surface sonic
nosis solely derived from surface
seismic data carries a high degree of
uncertainty and geological risk. Accurate,
high resolution seismic data often are not
available for critical deepwater development
projects because of inherent limitations in
surface seismic technology and difficulties
in getting an accurate characterization of
formations where salt layers are present.
Use of borehole seismic technology while
drilling can play an important role in gener-
ating more accurate, higher resolution seis-
mic data to reduce the risks and uncertainty
of deepwater drilling.
Seismic while drilling (SWD) helps re-
duce wireline VSP (vertical seismic profiling)
costs and risks, provides geophysicists and
drillers with valuable information to optimize
drilling efficiency, and provides added guid-
ance to the target, with the ability to predict
pore pressure ahead of the bit and to verify
reservoir models in real time. Economic ben-
efits result from faster ROP, fewer interrup-
tions to rotating hours, fewer hole problems,
fewer casing strings, faster completions, fuel
savings, less formation damage (particularly

Some drilling risks are illustrated here. Geo-

hazards include shallow gas, slope stability,
overpressured zones, gas hydrates, and salt.

80 Offshore July 2011 • [Link]

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production of crude oil and natural gas in the Peregrino oil-field, which is a part of the
Campos basin off the coast of Rio de Janeiro, Brazil.
Advanced coating systems supplied by Hempel has been applied to the hull, ballast
tanks, accommodations, process pipe rack modules, topside modules, main-deck and
heli-deck structures.
A special attention to the fouling release system selected for the underwater hull. It
contain no biocides and is the most advanced and environment friendly solution avail-
able on the market today.
Maersk Peregrino Specifications:
Length . . . . . . . . . . . . . . . . . . . . . . . . 345 m
Width . . . . . . . . . . . . . . . . . . . . . . . . . 58 m
Draft . . . . . . . . . . . . . . . . . . . . . . . . . 31 m
Oil production capacity . . . . . . . . . . 100,000 barrels/day
Oil Storage capacity . . . . . . . . . . . . . 1,6 million barrels
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Tel: +45 4593 3800 [Link]

GEOLOGY & GEOPHYSICS

source is used and geophones record the ner to all stakeholders (G&G, drilling, res- of the substantial benefits of SWD services,
returns. Although these services are often ervoir, land management, and commercial and major service companies are beginning
used with great success, interruption of the function) within the operator’s organization. to refocus efforts in this area.
drilling process is expensive and increases The geological staff is confronted constantly Exploration and production technologists
operating costs and risks. with the question: “Where are we?” have long recognized that a breakthrough in
Other recent developments include new Ideally, the answer to that question is “not borehole SWD providing real-time imaging
downhole SWD signal sources that ulti- linked exclusively to surface seismic.” LWD ahead of the bit for accurate pore pressure
mately will provide for routine source-at-bit derived real-time resistivity and sonic logs determination and geosteering, drill bit loca-
rather than source-at-surface SWD. Applica- are constantly, and frequently automatically, tion, reservoir model verification, and near
tions using ocean bottom cable at shallow cross-correlated with those logs embedded wellbore diagnostics would significantly lower
depths or permanently deployed seafloor in the original geological prognosis. Auto- drilling and completion costs; thereby, adding
geophones, source-at-bit SWD can provide matic stretching and/or compression algo- wells and reserves while improving safety.
greater benefits. It is important to note that rithms indicate in real time if a geological The industry anticipates the multiple benefits
this reference to source-at-bit SWD does not section identified in the original prognosis of greater pore pressure accuracy ahead of the
refer to the original drill-bit derived SWD is coming in higher or lower, if the section bit, leading to increased confidence in drilling
technologies (e.g., Baker Hughes TOMEX, is likely thicker or thinner, and to what ex- automation and including automatic chokes
OGS/ENI SeisBit, Schlumberger DBSeis, tent the entire geological prognosis needs to and other well control features.
or IFP TRAFOR), but rather downhole tools be amended and/or reprocessed. The final There are current source-at-bit R&D proj-
with an independent seismic source at or outcome of this effort drives the drilling and ects based on the use of unique downhole
near the bit. The advantages of such tools completion programs. noise sources (rather than a surface noise
are related to the uncertainty about what In more uncertain geological situations, source) whose sound frequency can be con-
lies ahead of the bit. a conclusive answer to the question “where trolled from the surface. These controlled
are we?” is much harder to come by. Often, seismic impulses will lead to more accurate
The geological prognosis cross-correlation of seismic derived syn- pore pressure prediction and reservoir mod-
Depending on the level of geological un- thetic sonic logs versus LWD real-time sonic el verification.
certainty, some or all of the following data or density logs is attempted. Some of these One example is a unique low-to-mid fre-
sources are used to construct the geological efforts have been very successful in describ- quency (1 Hz to 1 KHz) borehole sparker
prognosis: ing “where we are.” acoustic source developed during a six-year
• Surface seismic (the term is generically It is here that source-at-bit SWD provides U.S, DOE NETL research program conduct-
applied to both land and marine seismic the greatest benefits. Real-time updates of ed by Technology International Inc. The ini-
data) the entire seismic profile using SWD de- tial innovation was the discovery of a unique
• Borehole seismic and/or SWD derived rived transit times, may be achieved within sparker with a controllable lower frequency
seismic profiles from offset wells a time frame acceptable to standard well op- required for greater acoustic transmissibility
• Wireline and/or LWD logs from offset erations and provides a timely and reliable and optimized resolution. The source was
wells response to any “Where are we?” questions. demonstrated successfully on the drill string
• Pressure profiles from offset wells Source-at-bit SWD technology can be at the DOE RMOTC Wyoming field test cen-
• Lithological data and descriptions of drill combined with complex surface receiver ter, and is in use on wireline operations with
cuttings and core samples from offset arrays (geophones) to deal with vexing the cooperation of oil and service companies.
wells three-dimensional geological problems. New source-at-bit SWD tools are being
• Micropaleontological data from offset Source-at-bit SWD with complex surface designed for deep oil wells in harsh environ-
wells. receiver arrays can supply solutions to com- ments where corrosive fluids with high tem-
In situations with limited geological un- plex faulting, natural fracture (density and peratures and pressures occur. The systems
certainty, composite wireline and/or LWD direction) detection, and other geological aim to increase accuracy and resolution of
logs are the standard tools for geological “where are we?” problems not clearly de- seismic and other geological and geophysi-
prognosis. However, even in those situa- fined by surface seismic. The technology cal methods; implement new methods of
tions, the other data sources mentioned is applicable to both vertical and horizontal data acquisition, processing, interpretation,
will have played roles in constructing the wells and materially improves the utility of and integration of multiple technologies
geological prognosis. In situations with very the existing surface seismic data. The abil- and data sets into refined geologic and en-
high geological uncertainty, without appli- ity to position receiver arrays along the an- gineering models that guide the successful
cable wireline and/or LWD reference logs ticipated well path, parallel or perpendicular recompletion of existing oil reserves; opti-
or other offset data available, the geological to anticipated faults, and/or for the purpose mize oil field development; and manage for
prognosis is constructed entirely from sur- of resolving other complex geological un- maximum economic oil recovery.
face seismic information. Even with today’s certainties should make source-at-bit SWD New and existing SWD systems can save
modern seismic acquisition, processing, and the preferred technology. Source-at-surface millions of dollars by avoiding blowouts,
interpretation technology, a geological prog- SWD technology does not deliver compa- eliminating contingent casing strings, en-
nosis solely derived from surface seismic rable results in these geological settings on abling geo-steering to reach desired targets,
data carries a high degree of uncertainty identical economic terms. and reducing flat time. Faster drilling and
and consequential geological risk. elimination of blowouts provides for much
It is the main duty of the geological staff Future SWD services less impact on the environment and increas-
associated with a well in progress to deter- Recent events in the Gulf of Mexico rees public trust. Rapid completion of wells
mine the relative position of the well vis-à-vis inforce the need to reduce risks and uncer- also means fewer pollutants. A substantial
the original geological prognosis, to update tainties in drilling critical deepwater wells, reward is the potential to recover additional
and amend that geological prognosis, and to not just in the Gulf, but worldwide. Across oil reserves which would otherwise go un-
communicate the changes in a timely man- the industry, there is increased recognition known or unreached. 

82 Offshore July 2011 • [Link]

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DRILLING & COMPLETION

Risks and concerns of single-casing riser

systems versus dual-casing risers
Editor’s Note: The March 2005 issue Riley Goldsmith, casing supports the weight of inner casing
of Offshore carried an article by drilling Goldsmith Engineering Inc. strings. Bottom founded platforms do not
consultant Riley Goldsmith in which he support well systems; rather, they provide lat-
analyzed the differences in well control eral support to help prevent buckling of the
risks in deepwater and shallow-water long, slender casings between seafloor and
Air gap
operations; and the greater degree of surface. Deepwater floating platforms must
risk in deepwater. He concluded that support the weight of all casing risers that
Sea level
the deepwater risk was greater than reach the surface.
generally understood at the time, and Floating production platforms are used
that “There is clearly a need for govern- when water is too deep to build bottom-
ment-level regulations and procedures founded platforms. These floating platforms
that prescribe risk assessment require- are permanently moored and can withstand-
ments….” In this article, Mr. Goldsmith ing severe storms. They do not need to “run”
gives his updated analysis of deepwa- from hurricanes like floating mobile offshore
ter risks related to single-casing risers drilling units (MODUs). These stable struc-
and expresses his opinion of how they tures permit wellbores to be extended to the
should be addressed.
surface where well construction operations

S
can be conducted efficiently.
ingle-wall risers are being used in Deepwater developments can use either
situations where a leak could cause a Leak dry tree well systems, where the wellbore
catastrophic blowout. The Macondo is extended to the platform with heavy cas-
well incident has recalibrated indus- ing risers, or wet tree systems, where the
try estimates of the consequences wellbores are terminated at the ocean floor.
that could result from a blowout. Some Dry tree systems use surface BOPs for
industry-wide regulation is required to en- well construction operations and then in-
sure that multiple independent well control stall a dry tree with multiple control valves
barriers are present at all times in deepwa- for production. Wet tree systems use large
ter operations. Operating with a single well subsea BOPs and a marine riser to the float-
control barrier just is not prudent. ing structure for well construction, and then
In 1970 one company’s chief drilling en- install a subsea tree at the ocean floor to
gineer sent a memo with the theme that contain the flow of oil/gas during the pro-
engineers should weigh the costs and Sea floor ductive life of the well. Subsea wells usually
benefits of operations decisions as long as are connected to the surface platform via
the consequences were only “expensive.” production flowlines. Flowlines require less
However, “critical risks” should be totally If a riser leaks, the level of heavier mud in the platform support than dry tree systems that
avoided. Each drilling engineer was encour- riser drops until the mud column pressure extend wellbores to the surface.
aged to make his own cost/benefit analysis. equals seawater pressure. A blowout starts if Many factors must be considered when de-
the riser loss exceeds the riser margin. Closing
For example, one might run a bit until cones ciding whether a dry tree or wet tree devel-
surface BOPs provides no protection when the
are locked and about to fall off. The benefit leak is below the BOPs.
opment is most economical. Reservoir size
was that a few bits and associated rig time and shape, depth below mud line, number of
to change bits could be saved on each well Today risk analysis tools and processes wells, type and frequency of workover opera-
if fewer bits were pulled “green.” One con- formalize thoughtful analyses that capture tions expected during the productive life of
sequence might be an expensive fishing job input from both experienced personnel and the field, and other factors must be evaluated.
to get bit cones out of the hole. Critical risk specialists from many disciplines. Compromising safety with single- rather than
might be, for example, repairing or replac- But normal cost/benefit analyses are insuf- dual-casing risers should not be a consider-
ing a wellhead or BOPs with only mud in ficient when comparing cost savings estimates ation in selecting a dry tree well system.
the hole to prevent a blowout. It was known for using a more risky single-casing riser Since deepwater floating platforms must
intuitively that it was prudent to set a down- system with the low probability, high conse- support vertical loads from dry tree wells,
hole plug to back-up mud as a well control quence cost of a blowout. the heaviest outer casing, e.g., 36-in., 30-in.,
barrier if BOPs had to be removed. The con- 26-in., 20-in. ID, are not extended to the plat-
sequence of a blowout was too onerous to Deepwater form. Typically, two smaller casing strings
rely on mud alone to control the well. production platforms extend to the surface and are supported by
In the past, decisions were based on the Deepwater well designs have evolved from the floating platforms. Two concentric cas-
“gut feel” of a few experienced personnel. land and shallow water designs. Large outer ing strings (risers) provide two independent

84 Offshore July 2011 • [Link]

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DRILLING & COMPLETION

This plots riser loss versus mud weight re-

quired to balance formation pressure. Several 2,500 6,000
early deepwater dry tree systems are plotted,
showing the water depth and required mud
weight, and riser loss that would occur if
5,000
the riser were disconnected. The solid stars 2,000
indicate dual-casing riser systems; open stars
indicate single-casing systems. Magnolia
4,000

Riser loss (psi)

Water depth (ft)

1,500
well control barriers. Holstein 3,000
Dry tree systems have advantages. A less ex-
Ursa
pensive platform rig can be used and well con-
struction operations take less time compared to 1,000 Roger
Ram Powell Genesis 2,000
subsea operations with a MODU. However, a Mars
larger, more expensive platform is required to Brutus
Horn Mountain Neptune
support the rig and casing risers. Dual-casing 1,000
riser systems impose greater loads on the 500 Hoover Diana Marlin Jolliet
platform than single-casing riser systems and
therefore can increase platform cost.
Understandably, project managers prefer Heidrun Hutton
0
single-casing risers to improve project econom-
9 10 11 12 13 14 15 16
ics. A quantifiable capex increase with dual
casing risers typically is compared to a more Mud weight (ppg)
nebulous increase in blowout risk exposure.
For any one field development, the odds of a
catastrophic blowout resulting from use of a sin- Component and diligent effort. There is generally less mar-
gle-casing riser failure may be small. However, reliability challenges gin for error in deepwater well designs and oper-
the enormous consequence associated with an- Deepwater operations achieve comparable ations. As water depth increases, riser reliability
other Macondo type blowout makes increased safety and performance levels as shallow water decreases because there are more casing con-
risk of single-casing risers unacceptable. operations but require greater time, expense, nections and higher stresses. For example, ris-

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ers are exposed to dynamic environmental loads we find common causes reduce this theo- dual-casing risers. Even the worst case con-
that can cause fatigue damage, and seawater pro- retical value to less than a million. Experience sequences considered by the JIP were many
motes corrosion. Additional barriers (outer riser shows that two properly designed and tested times less than the Macondo blowout costs.
strings) would be required to achieve the same independent well control barriers usually are Many factors can detrimentally affect the in-
reliability and safety as shallow water systems adequate. However, it is virtually impossible to tegrity of a barrier. These include such things as
with the same number and quantity of barriers. engineer a single-barrier system to the reliabil- out-of-specification materials, corrosion, improper
Floating platforms sometimes use subsea ity equivalent of a normal dual-barrier system. installation procedures, and poor management
BOPs or a subsea isolation device (SID) dur- A joint industry project funded by 12 oil processes. A leak in any one of the hundreds of
ing drilling operations. If the drilling riser companies and the MMS showed that blow- connected components is a barrier failure. Escala-
leaks, the BOPs or SID are closed to prevent out probability with single-casing risers is typi- tion control or mitigation factors such as testing,
loss of control. Subsea equipment is more cally an order of magnitude higher than with monitoring, and active corrosion control can re-
complicated and more prone to failures than
surface BOPs because they must be installed,
tested, and operated remotely. When testing
surface BOPs, because the total volume of
test fluid is small the loss of a few drops of test
fluid is seen easily and can be detected by a
decrease in test pressure. A much larger vol-
ume of fluid is required to test subsea BOPs.
Temperatures near seafloor are typically 37°F
to 40°F (3°C to 4.5°C). Temperature changes
of the test fluid cause pressure changes that
can confuse test results. In addition, control
systems for subsea BOPs are more complicat-
ed and vulnerable than surface BOP controls.

Why multiple barriers

Why are multiple barriers required in well
systems when other equipments such as pipe-
lines and production separators are single-
walled? The difference is because if a pipeline
or pressure vessel ruptures, the source of
potential pollution can be isolated with control
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DRILLING & COMPLETION

duce the effects. These activities do not add barriers to the system; they only Some spars have been installed with single-casing risers with the pro-
improve the reliability of the physical well control barriers. visions to pull the vessel aside to perform workover operations with a
MODU using a subsea BOP. During production operations, the tubing,
Riser loss phenomena packer, and tree provide the primary well control barrier (with a SCSSV
Riser loss is reduction in hydrostatic pressure when the mud in a riser for additional backup) and the single-casing riser system provides a sec-
is replaced with seawater. Riser margin is how much higher the mud ond barrier. The argument is that single-barrier is risky only during ini-
hydrostatic pressure is than the formation pressure. Riser margin may tial completions and during transition from production mode to MODU
be 500 to 700 psi (3.4 to 4.8 MPa) during drilling, but usually is less for operations. History shows, however, that it is during well intervention
completions and workover operations. Riser loss is small in shallow wa- operations that most well control incidents occur.
ter and/or if the calculated mud density is near that of seawater. If the Over the years, single-casing drilling risers have become common,
riser leaks, the level of heavier mud in the riser drops until the mud col- especially for drilling surface and intermediate sections of the hole
umn pressure equals seawater pressure. A blowout starts if the riser loss where prolific hydrocarbon bearing zones are thought to be absent.
exceeds the riser margin. Closing surface BOPs provides no protection A riser failure can cause a blowout, but it is reasoned that the conse-
against a leak below the BOPs. quence will be minimal. But how can anyone be certain how extreme
A single-casing riser system with surface BOPs was selected for the first a blowout would be? In some cases operators have deemed it accept-
floating platform, the Hutton TLP, because riser loss was only about 170 psi able to drill into the primary producing zones with a single-casing
(1.2 MPa). It was reasoned that in the event of a riser leak, the riser margin riser, arguing that the exposure time to this high risk is short.
would be sufficient to maintain well control. This design provided two inde- As more aggressive, riskier, well designs evolve, each project argues
pendent well control barriers – the mud column and the single-casing riser. that the risks are only slightly higher than before. Although Macondo
A very small riser loss is an absolute requirement for single-casing riser was not caused by a single barrier failure, it emphasized the need to re-
system to provide two independent well control barriers. duce probability of failure to compensate for the higher consequences
of a blowout.
Evolution of deepwater well systems
Early floating production platforms were installed in relatively shal- Single-casing riser failures
low water and relatively low formation pressures. Mud hydrostatic pres- It is sometimes argued that single-casing risers have a good track re-
sure and a single-casing riser were independent well control barriers cord. However, risers have parted and inadvertently been disconnected
because riser loss was minor. In deeper water, most TLPs and spars use when remote operated vehicles mistakenly disconnected the wrong ris-
dual-casing risers where formation pressures are abnormal. However, ers. Tensioning system failures have occurred, resulting in damaged
there always have been economic incentives to justify less expensive risers. These failure and near misses show that a blowout with a single-
single casing risers rather than more expensive dual-casing versions. casing riser is a real possibility. 

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Join hundreds of colleagues and exhibiting companies for this high-level technical conference and exhibition and connect
with key decision makers and technical experts directly involved in the topsides industry. Over three days, Topsides,
Platforms & Hulls will feature presentations covering technical issues, business challenges and future trends, plus showcase
an exhibition of products and services from dozens of key engineering firms, contractors, suppliers and service providers.

OWNED &
PRODUCED BY PRESENTED BY SUPPORTED BY

P R O D U C T I O N O P E R AT I O N S

Looming SEMS rules

will require new strategies
Competence assurance programs offer key tool for compliance

T
he 2010 Macondo oil spill in the Gulf Tony Littler contractors comply with their SEMS plan,
of Mexico led to a number of inves- Petrofac Training Services both parties must uphold the requirements
tigations, reactions, and conclusions of the plan. The SEMS rule does allow for
about the future of the US oil and the implementation of a bridging document
gas industry, particularly regarding which enables a contractor to use an opera-
safety standards. In light of this, the Bureau tor’s SEMS plan if they do not already have a
of Ocean Energy Management Regulations SEMS-type program in place to support the
and Enforcement (BOEMRE) created new implementation of these new requirements.
regulations with the aim of enhancing safety
standards. Upcoming challenges
These new regulations require offshore More difficult than meeting the Novem-
operators to maintain comprehensive safety ber deadline will be the challenge of ensur-
and environmental programs to strengthen ing that industry operators and contractors
drilling safety and reduce the risk of human work together to agree on a consistent,
error. As part of the new Workplace Safety standardized solution that defines the mini-
Rule, all operators will be required to devel- mum skills and knowledge requirements for
op, implement and maintain a Safety and En- personnel. The industry must address how
vironmental Management Systems (SEMS) The key components of a competence assur- to standardize training, assessment, and re-
ance program.
plan by November 2011. cord keeping going forward.
BOEMRE defines SEMS as a compre- Imagine the complexity, inefficiency, and
hensive management program for identify- SEMS: difficulty that will ensue if all operators re-
ing, addressing and managing operational What you need to know quire contractors to follow different SEMS
safety hazards and impacts, with the goal of • As part of the Workplace Safety plans. Contractors will never be able to
promoting human safety and environmental Rule, all operators will be required to keep up with the differing systems, plans,
protection. develop, implement and maintain a processes and requirements necessary to
SEMS is not entirely new to the industry. SEMS plan. move from one job site to the next. Further,
BOEMRE’s predecessor, Minerals Manage- • SEMS plans must be modelled against if industry agreement cannot be reached,
API’s RP75 and include 13 elements
ment Services (MMS), introduced SEMS as undoubtedly there will be inconsistent train-
ranging from hazard analysis to
a recommended practice for operators years ing requirements between operators. Thus,
management of change to records and
ago. Further, in 1994, MMS endorsed the costs will likely balloon because of the bur-
documentation.
American Petroleum Institute RP75, Rec- • SEMS plans must be available for au- den placed on contractors to meet the vary-
ommended Practice for Development of a diting purposes by November 15, 2011. ing SEMS requirements.
Safety and Environmental Management Pro- • As a component of SEMS, the operator Another lurking challenge: the industry
gram for Offshore Operations and Facilities. is responsible for ensuring that all must collectively agree that the solution
The difference now is that such systems will staff and contractors have the skills will require more than a “tick-in-the-box”
be mandatory. and knowledge required to safely training approach. It is an unreasonable ex-
perform their assigned duties. pectation that training alone will automati-
Understanding • The operator or an independent third cally result in the achievement of skills and
the implications party must audit the program two knowledge. Further, it must be understood
As stated in the Federal Register on Oct. years from the initial implementation that simply adding on more training require-
15, 2010: “It is the intent of this rule [SEMS] and at least once every three years ments to existing training programs will not
to hold the operator accountable for the thereafter. BOEMRE may participate in deliver a viable solution either.
overall safety of the offshore facility, includ- the audit or conduct its own audit of
ing ensuring that all contractors and subcon- the SEMS plan. Competence
tractors have safety policies and procedures assurance programs
in place that support the implementation of comply with its SEMS plans. The operator While they are referred to by a variety of
the operator’s SEMS program and align with must therefore ensure contractors have names, Competence Assurance Programs
the principles of managing safety set forth in their own written safety policies and proce- (CAPs) have been used throughout the oil
API RP 75.” dures as well as records to verify the skills and gas industry and across various parts
It is the responsibility of the operator and knowledge of their workforce. While of the globe for decades. CAPs provide a
to ensure its contractors understand and the burden is on the operator to ensure that practical, logical approach to managing and

90 Offshore July 2011 • [Link]

[Link]
____________________ [Link]
_________________________________

INVITATION TO ATTEND
Offshore India and Unconventional Oil & Gas India is a
unique annual forum for the industry, with both a world class
conference combined with the exhibition showcasing the
latest technological developments, both within offshore and
unconventional industries.

WHY ATTEND?
• A unique audience of the world’s leading executives,
managers and engineers from major and independent E&P
companies focusing on India’s specific requirements
• A world-class two-track technical conference program
• An exhibition showcasing technology and capabilities to
support improvements in India’s E&P operations
MERGING TECHNOLOGIES • Expert opinions on the new issues, challenges and solutions
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ENABLING
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PRESENTED BY: CO-ORGANIZED BY:

P R O D U C T I O N O P E R AT I O N S

enhancing the skills and knowledge base of employees.

They are designed to address the training, development, and as-
sessment requirements of an organization, and ensure that the staff
can demonstrate their competence in a practical work environment.
Risk is mitigated by ensuring that employees are not put in danger
of personal harm from the tasks they perform.
Regardless of title, CAPs involve the same key components:
Job profiles. Define required competencies, responsibilities, ac-
countabilities, and activities. These discipline-specific profiles differ-
entiate the knowledge and skill requirements of the job.
Training programs. Enhance competencies and enable skills or Competence assurance programs provide a practical, logical approach to
knowledge gap closure. Training needs are identified based on role- managing and enhancing the skills and knowledge base of employees.
specific job profiles and typically include generic and site-specific
training. nies are developing CAPs to aid in SEMS compliance, as they offer
Evaluation process. Identify and record individual competence and a viable solution for evaluating and assuring the skills and knowl-
competence gaps. The evaluation allows personnel to demonstrate edge base of employees, while also providing training and evalua-
whether they have sufficient knowledge and skills to safely carry tion records and documentation. While CAPs alone will not be the
out their jobs. complete solution to SEMS compliance, they provide a consistent
Verification process. Ensure consistent evaluation standards and approach to competency management.
recordkeeping. Verification is essential to assure the integrity of the
overall program. Path forward
An IT database, often called a Learning Management System, As the requirements of BOEMRE are beginning to emerge more
is typically integrated to record, track, and report on all training clearly, operators and contractors will need time to establish how
activities and competence evaluations across the organization and learning, training and workforce capability processes should change
throughout the individual’s career. It allows the organization to in order to meet SEMS regulations.
provide an auditable report on the capability of its workforce at the If operators and contractors can work together to agree to stan-
press of a button. This will become increasingly important once op- dardized competence requirements and processes, we can bring
erators are required to undergo the auditing process as part of the about a step change in the way personnel are trained and deemed
SEMS ruling. competent to perform their jobs, ultimately minimizing risk and im-
In the United States, a number of operators and service compa- proving workplace safety. 

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BEST PRACTICES, REDUCING RISKS, PREPARING FOR THE FUTURE.

Mark your calendar for the 9th annual Deepwater Operations

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of excellence in addressing operational challenges involved in
developing deepwater resources. We will return to the Moody
Gardens Hotel and Convention Center on November 1 – 3,
2011 in Galveston, Texas. For 2011 event details, please visit
[Link].

NOVEMBER 1–3, 2011

MOODY GARDENS HOTEL & CONVENTION CENTER
GALVESTON, TEXAS + __________________________
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PRESENTED BY: + SUPPORTED BY: + OWNED & PRODUCED BY:

FLOWLINES AND PIPELINES

Improving deepwater
pipeline repair capability
The DW RUPE–Pipelines group now offers a quick-response
repair system for GoM and international offshore operators
Ray R. Ayers, PhD, P.E. remote, but the consequences of failure in lost revenue and environ-
Stress Engineering Services Inc. mental damage were quite high. They recognized that the essential
repair tools at that time were the traditional connectors to join pipe
Armando Rebello, P.E. ends and clamps to seal a small leak in a pipe. With further study,
Stress Subsea Inc. though, the group realized that the leak clamp would require a pipe
gripping means in addition to the traditional sealing means; thus, a

S
structural clamp was required.
ince 2004, a joint industry project (JIP) has been working to In an issued request for proposal to several companies, Quality
develop the capability to repair 10 to 24-in. ANSI 1500 pipe- Connector Systems responded with a proposal to make a structural
lines in sea water depths from 1,000 to 10,000 ft. During the clamp that would fill the dual purpose of being both a pipe joining
first phase of the JIP, participants identified and evaluated clamp-type connector and a structural leak clamp. Hence, the co-
diverless pipeline repair methods and available repair tools owners could purchase two clamp/connectors for each pipe size
(leak clamps and connectors). The second phase involved qualifi- rather than two connectors and one clamp – an approximate savings
cation testing of a novel low-cost method of using structural repair of 1/3 earlier cost estimates (since the price per tool is about the
clamps as connectors to repair a spool piece. same), and a low-cost solution. A second JIP built and successfully
In 2005, though, hurricanes Katrina and Rita impacted the JIP tested the clamp/connector tool in the 12-in. size.
participants’ thinking on repair methods and tools, which ultimately Then, in 2005 hurricanes Katrina and Rita hit, and four of the JIP
led to the formation of DW RUPE–Pipelines, a co-ownership group participants decided to develop a pipeline deepwater repair system
consisting of four founding co-owners (Enterprise Partners, En- consisting of two connectors and one structural clamp for each pipe
bridge, BP, and Eni), for purchasing and storing $12 million in repair size from 10 to 24-in.
system components for emergency call-out. Now, the tools are all Following these storms, the co-owners evaluated the risk as high-
ready for service, and the DW RUPE tools are ready for use when er; and as a result, they wanted the “best” solution rather than a
needed. (Note: The co-ownership group is open to any interested low capex solution (although both solutions are workable). Conse-
new members.) quently, DW RUPE–Pipelines was formed. (Also being organized,
RUPE is an acronym for “Response to Underwater Pipeline Emer- but not yet formed, is DW RUPE–Flowlines.) The group’s objective
gencies” and is patterned after the shallow-water RUPE Repair Tools is to have a complete tool inventory available for deepwater flowline
co-ownership group, which has been in operation for over 30 years, repair emergencies.
and now consists of more than 33 co-owners worldwide. Now the collaborative effort is complete and these key project
milestones have been reached:
Progress to date • DW RUPE began in 2004 and, after three years, two JIPs, and
The co-ownership group called DW RUPE Repair Tools is in its the collective forces of hurricanes Katrina and Rita, has become
fourth year of operation after originating in May 2007. Four compa- reality.
nies – Enterprise, Enbridge, BP, and Eni – agreed to co-fund a suite • DW RUPE has fully developed a process and the equipment
of deepwater pipeline repair tools at an overall cost of $12 million. necessary to use in making emergency repairs to deepwater
Preceding the formation of the co-ownership group were two JIPs pipelines while minimizing environmental impact. The project
starting in 2004 and running through hurricanes Katrina and Rita in selected, and has in storage, connectors, clamps, FBE/weld
2006. Both focused on how to make repairs and on what tools would seam removal and end preparation tools, lifting frames, and
be required. indexing bases as key components to use in affecting ROV-
In 2004, JIP participants assessed felt that the risk of damage was assisted repairs.

Pipe handling arrange-

ment for system integra-
tion trials.

94 Offshore July 2011 • [Link]

FLOWLINES AND PIPELINES

age location, the pipeline owner (and mem- sary, the lift frames must be positioned far
ber of DW RUPE) will determine whether enough away from the cut location so that
to use a structural clamp to repair a pinhole any occurring spring-back, which ultimately
leak or remove a damaged segment of pipe creates a gap, will not cause the pipe ends to
and perform a spoolpiece repair. The top slant upward (thus, potentially losing oil by
priority, though, is the need to evaluate and gravity flow). DW RUPE has carefully con-
control any oil or gas leakage, thus minimiz- structed a finite difference computer model,
ing environmental issues. verified with finite element methodology,
By the time a damaged gas pipeline has to achieve the downward sloping pipe ends
been located, its condition has been deter- past the pipe cuts.
mined, and a repair crew has been mobi- Further, considering pipe spring-back,
lized, any gas loss (less detrimental than any one understands that deepwater routes
oil loss) will have likely already occurred. have very large radius curves; hence, the
Twelve-inch clamp in test configuration. For oil, one assumes that the pipeline is shut presence of residual bending moment in
in by appropriate valves so that the pipeline the vertical plane will likely be mild. For
• Beginning in May 2007, the DW RUPE– is not purposely flowing oil. Consequently, design purposes, the maximum allowable
Pipelines co-ownership group became the only oil release would be caused by strain (reference API RP 1111) is 0.15% so
the first cooperative to provide a high- movement of the damaged pipeline during any residual spring-back is negligible. Thus,
pressure, deepwater depth pipeline repair (movement driven by gravity flow for the 100 ft of pipe adjacent to the cut, one
repair system that is open to new co- based on the density difference between oil would expect the spring-back to be fewer
owners both in the Gulf of Mexico and and water). than a few inches per side.
internationally. DW RUPE has procured Next, twin pipe lift frames would be low- Another potential problem in the pipe sag-
$12 million of ANSI 1500 tools fitting ered one at a time to specific points on ei- bend area (a location of compressive bend-
pipe sizes from 10 to 24-in. and capable ther side of the leak location of the pipeline. ing stresses on the top) is the pipe’s “bind-
of water depths from 1000 to 10,000 ft. The first pipe lift frame would be installed ing” the cutting device during the cutting
• An Excel-based spreadsheet calculation far enough from the leak area, a distance cal- process. Experience suggests that either di-
tool has been created to assist in plan- culated to be a lift point where “humps” are amond wire saws or milling heads deployed
ning careful placement of lifting means created, as seen in the associated diagram. subsea would be more resistant to binding
(pipe lift frames and indexing cases) to Also shown are the indexing bases that are than a conventional bladed saw. The circular
achieve a viable repair project. deployed to stabilize the leak point above the cross section of the wire or the milling head
seafloor for clamping or to control the pipe tends to bore a hole which can relieve lateral
Repair tools ends after cutting out the damaged section. compression effects in the process.
The co-ownership group systematically The “humps” formed with the lift frames Even if there were a binding problem,
selected repair tools for the initial inven- create “high points” that are higher than the though, there would also be a delay in the
tory of DW RUPE. Whenever any tools are leak point by at least one pipe diameter in cutting process until the diamond wire was
removed for emergency repairs by the co- vertical distance. As long as the leak point is replaced. In that case, the second cut would
owners, replacement tools may involve dif- below the bottom of the pipe at the “hump” also take advantage of relief provided by the
ferent component suppliers, depending on point, leakage cannot occur from gravity first cut, and the pipe would eventually be
competitive bidding. flow of the lifted sides. The pipe damage cut completely.
For the initial system, the co-owners care- point is thus located in the “valley” between Once the pipe ends are downward slop-
fully evaluated and selected their procure- “humps.” ing, the ROV can insert low pressure flexible
ment options, which included: The next step in the oil containment sealing plugs (pigs) capable of maintaining a
• Double grip and seal connectors (two process is to either attach a structural leak seal during subsequent pipeline spoolpiece
per pipe size) clamp, if there is a pinhole leak, or cut out placement activities that follow.
• Structural leak clamps (one per pipe a section of damaged pipe if the damage is This is just a sample of some of the find-
size) more severe or extensive. If cuts are neces- ings of the DW RUPE–Pipelines co-owner-
• Pipe lift frames (two for all ship group. There are also impor-
sizes) tant considerations with regard
• Indexing bases (two for all to the spoolpiece repair process,
sizes) the connector-indexing base inter-
• FBE & weld seam removal as face, and the calculation process
well as pipe end preparation for making an inline spoolpiece
tools (all sizes). repair. Progress has been made
on these fronts as well. For more
Repair process information on the co-ownership
The co-owners agreed upon project and its progress to date,
a methodology and process for please visit [Link]
performing repairs. Obviously, __ 
org.
the first step involves locating the
damaged deepwater pipeline and
determining the magnitude of the Spool piece with
damage and oil leakage condition. bolted connector.
Depending on the findings from
an ROV video survey of the dam-

96 Offshore July 2011 • [Link]

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2012 SUBSEA TIEBACK FORUM & EXHIBITION

[Link]
w b a [Link]

MARCH 6 – 8, 2012 • Moody Gardens Hotel & Convention Center • Galveston, Texas

In recent years, the subsea industry has seen many technology challenges, engineering demands, resource availability
issues, Quality Assurance requirements, manufacturing constraints, and most recently, changes in the governmental
regulatory agencies affecting existing standards and/or processes. The Subsea Tieback Forum & Exhibition will provide
information and the opportunity for you to exchange ideas to address many of these concerns and challenges.
The Subsea Tieback Forum & Exhibition has become the premier event for one of the fastest growing sectors of the oil
and gas industry. Next year’s Subsea Tieback Forum & Exhibition is scheduled for March 6-8, 2012 in Galveston, TX
at the Moody Gardens Hotel & Convention Center. Visit [Link] for up-to-date information
about the event. You can’t afford to miss it!

Owned &
Produced by Presented by Supported by

𰀺𰀺𰀺𰀑𰀲𰀩𰀩𰀶𰀫𰀲𰀵𰀨𰀲𰀬𰀯𰀬𰀱𰀧𰀬𰀤𰀑𰀦𰀲𰀰
____________________ 𰀺𰀺𰀺𰀑𰀸𰀱𰀦𰀲𰀱𰀹𰀨𰀱𰀷𰀬𰀲𰀱𰀤𰀯𰀲𰀬𰀯𰀤𰀱𰀧𰀪𰀤𰀶𰀐𰀬𰀱𰀧𰀬𰀤𰀑𰀦𰀲𰀰
_________________________________

MERGING TECHNOLOGIES

ENABLING
SUCCESS
14 - 16 SEPTEMBER 2011
MUMBAI, INDIA, BOMBAY EXHIBITION CENTRE

PRE SHOW GUIDE

PRESENTED BY: CO-ORGANIZED BY:

WELCOME

Offshore India and Unconventional Oil & Gas India is a unique forum for the industry, combining a world class conference with
an exhibition showcasing the latest technological developments. Being part of this event will ensure your company prospers
within one of the world’s fastest developing oil and gas markets.

Offshore India and Unconventional Oil & Gas India presents top-quality sessions in two areas of special technical interest
in India – and much more. It offers sessions on structures and practices of the Indian oil and gas industry, on the Indian
regulatory climate, on opportunities for companies outside the country, and on key Indian projects across the full spectrum of
industry operations.

This event will be of benefit to anyone interested in the Indian oil and gas industry—in its fascinating practices and projects;
in the operations, resources, and technologies now shaping its energy destiny; and in the business relationships that will show
the way forward.

Offshore India and Unconventional Oil & Gas India truly reflects the changing face of this burgeoning oil and gas region,
with the country boasting a distinctive oil and gas industry eager to work with companies from abroad.

Plan now to take part in a first-of-its kind international gathering.

EARLY BIRD DISCOUNT

Register as a conference delegate before or on 12 August 2011 and take advantage of our early bird discounted delegate rates.

FREE EXHIBITION ENTRY

Pre-register as a visitor before 6 September 2011 for FREE admittance to India’s premier offshore and unconventional
oil and gas exhibition.

REGISTRATION FORM
Please turn to page 8 for the registration form or visit [Link]. Simply complete this form and fax it to +1 918
831 9161. Alternatively please mail your completed form to us at: PennWell C&E Registration (OIUOGI), P.O. Box 973059,
Dallas, TX 75397-3059 USA

REGISTER ONLINE
Online registration via the Offshore India and Unconventional Oil & Gas India website is a straightforward and simple process.
Just log on to the event website [Link], or [Link] and click on the
online registration link.

[Link]
[Link]

CONFERENCE GRID

WEDNESDAY 14 SEPTEMBER 2011

15:00-17:00 WELCOME AND INTRODUCTION

INAUGURAL ADDRESS

CONFERENCE WELCOME ADDRESSES

17:00 - 19:00 OPENING NIGHT RECEPTION

THURSDAY 15 SEPTEMBER 2011

09:00 – 10:30 OPENING PLENARY
10:30 – 11:00 COFFEE BREAK

11:00 – 12:30 Plenary Session: Business and Regulation in India

12:30 – 14:00 LUNCH

OFFSHORE TRACK UNCONVENTIONAL OIL & GAS TRACK

14:00 – 15:30 SESSION 2: Deepwater Technology SESSION 2: Regions and Plays

15:30 – 16:00 COFFEE BREAK

16:00 – 17:30 SESSION 3: Production Optimization SESSION 3: Reservoirs and Strategies

FRIDAY 16 SEPTEMBER 2011

09:00 – 10:40 Plenary Session: Indian Project Highlights - Refineries

10:40 – 11:10 COFFEE BREAK

11:10 – 12:30 Plenary Session: Indian Project Highlights - Exploration

12:30 – 13:45 LUNCH

13:45 – 15:15 SESSION 6: Regional Challenges SESSION 6: Applied Technology

15:15 – 15:45 COFFEE BREAK

15:45 – 17:15 SESSION 7: Asset Integrity SESSION 7: Reservoir Modeling and Characterization

17:15 – 18:45 PLENARY PANEL DISCUSSION

18:45 – 19:00 AWARDS CEREMONY AND CLOSING REMARKS

EXHIBITING PACKAGE

COST TO EXHIBIT:
Exhibition space is US $350 per sqm raw
Exhibition space is US $400 per sqm with shell scheme

WHAT YOU GET WITH SHELL SCHEME:

• Exhibit space plus shell scheme walls
• One table
• One lockable cupboard
• Two chairs
• Three spotlights
• Waste basket
• Fascia board with company name
• Carpet, and basic stand cleaning with each 3 x 3 unit.
(N.B. Shell scheme and Raw space electrical requirements must be ordered separately)

SPONSORSHIP OPPORTUNITIES
Sponsorship opportunities offer a great way to enhance the profile and awareness of your company. Whether your company
is well established in the region or seeking new business opportunities, we can tailor a unique sponsorship package that meets
with your event objectives.

SPONSORSHIP OPPORTUNITIES INCLUDE:

• Opening Reception Sponsor
• Networking Reception Sponsor
• Keynote Luncheon Sponsor
• Delegate Luncheon Sponsor
• Delegate Bag Sponsor
• Continental Breakfast Sponsor
• Conference Notepads and Pens Sponsorship
• Online Conference Proceedings Sponsorship
• Session Track Sponsorship – Offshore India
• Session Track Sponsorship – Unconventional Oil & Gas India
• Visitor Bags Sponsorship
• Speakers Appreciation Gifts – Offshore India
• Speakers Appreciation Gifts – Unconventional Oil & Gas India
• Online Registration Banner Sponsor

EXHIBITING OPPORTUNITIES

The Offshore India and Unconventional Oil & Gas India

exhibition will showcase the latest technology developments,
attracting senior decision makers, and enabling you to
make crucial contacts within the industry, both Indian and
international, eager to meet you and learn what your business
can offer them.

The development of the Indian market is one which continues

to increase, with forecasts showing continual growth and
expansion. To support this, the Government’s 11th Five Year
Plan outlines extensive production and distribution projects
to meet the oil and gas needs of its economy, providing huge
opportunities for those within these industries. Offshore India
and Unconventional Oil & Gas India is one opportunity you
just cannot afford to miss.

WHY EXHIBIT?
• Increase your company’s brand awareness
• Launch new products and services
• Target particular market areas
• Meet customers and prospects face to face
• Stay ahead of the competition
• Direct access to an international audience of high level
decision makers
• Demystify the regulatory issues in India

WHAT ARE DELEGATES’ MAIN AREAS OF INTEREST?

• Production
• Exploration
• Pipeline / transportation
• Gas processing
• Drilling
• Petrochemical / refining
• Financial

For further information on exhibiting please visit

[Link] or
[Link].
Alternatively please contact one of our sales team,
details are available on the contacts page.

FLOOR PLAN / EXHIBITOR LIST

AS OF 31 MAY 2011, LIST OF EXHIBITORS INCLUDE:

EXHIBITOR BOOTH
AKER SOLUTIONS
MALAYSIA SND. BHD D40
ASRY OFFSHORE SERVICES C60
CHAMPION TECHNOLOGIES EUROPE BV A12
CHROMALOX D74
ESSAR LTD D20
FAGIOLI E20
FARO E22
GLOBAL GASES GROUP
SINGAPORE PTE LTD A16
GOMA C84
HARDBANDING SOLUTIONS BY
POSTLE INDUSTRIES C82
HYDRATIGHT D70
LAMPRELL ASIA D42
LEVINGSTON E18
MADRAS HARDTOOLS E48
METAL SAMPLES A06
MINERVA AUTOMOTORS E02
ONGC D10
PCI C70
PROSAFE OFFSHORE LTD D44
REEL (INSPECTION AND RIG
MAINTENANCE) PVT LTD C90
S K OILFIELD E12/E14
SEAWAY HEAVY LIFTING B V A02
SOM LAUCUK SANAYI D46
TECHNIP FRANCE C80
TYCO THERMAL B70
UNITED DRILLING E16
VIDEOCON INDUSTRIES LTD B20

CONTACTS

CONFERENCE EXHIBIT SALES & Exhibit Sales Manager Exhibit Sales Manager
Conference Director SPONSORSHIP (Offshore) South East Asia
(Offshore) USA Michael Yee
David Paganie Exhibit Sales Manager Peter Cantu Tel: +65 9616 8080
Tel: +1 713 963-6217 (India) Tel: +1 713 963 6213 Email: yfyee@[Link]
Fax: +1 713 963 6212 Siddharth Chibba Fax: +1 713 963 6212
Email: davidp@[Link] Tel: +91 124 452 4200 / 452 Email: peterc@[Link] Exhibit Services Manager
4201
Joanna Gillespie
Conference Director Fax: +91 124 438 1162 Exhibit Sales Manager Tel: +44 1992 656 672
(Unconventional) Email: siddharth@[Link] (Unconventional)
Fax: +44 1992 656 700
Bob Tippee USA & Rest of the World
Email: joannag@[Link]
Tel: +1 713 963-6242 Exhibit Sales Manager Desiree Reyes
Fax: +1 713 963 6212 (Offshore) Tel: +1 713 963 6283
Marketing Manager
Email: bobp@[Link] Rest of the World Fax: +1 713 963 6212
Lee Catania
Jane Bailey Email: desireer@[Link]
Tel: +44 (0) 1992 656 647
Conference Manager Tel: +44 (0) 1992 656 651
Fax: +44 (0) 1992 656 700
Jenny Phillips Fax: +44 (0) 1992 656 700
Email: leec@[Link]
Tel: +44 (0) 1992 656 629 Email: janeb@[Link]
Fax: +44 (0) 1992 656 700
Operations Manager
Email: jennyp@[Link]
Fharisa Hersi
Tel: +44 (0) 1992 656 638
Fax: +44 (0) 1992 656 700
Email: fharisah@[Link]

HOW TO GET THERE

For information on hotel accommodation and how to get to the Bombay Exhibition Centre please visit the Offshore India
and Unconventional Oil & Gas India websites:
[Link]
________________________

[Link]
_______________________________________

For information about Visa requirements, please contact your Indian Embassy or travel agent for advice.

ABOUT THE VENUE:

Mumbai is the business capital of India and generates an estimated 5% of India’s GDP. Mumbai is home to important
financial institutions and serves as the corporate headquarters for numerous Indian companies and multinational
corporations.
The Bombay Exhibition Centre (BEC), the venue for Offshore India and Unconventional Oil & Gas India 2011, is
one of the largest exhibition centres in India, which hosts a variety of prestigious international exhibitions. BEC has
an ideal location. It is near the national and the international airports as well as the Mumbai city centre, and has
numerous international hotels in the vicinity. Ideal entertainment, retail shopping and sight-seeing spots are also in
close proximity.

𰀔𰀗𰀐𰀔𰀙𰀃𰀶𰀨𰀳𰀷𰀨𰀰𰀥𰀨𰀵𰀃𰀕𰀓𰀔𰀔
𰀥𰀲𰀰𰀥𰀤𰀼𰀃𰀨𰀻𰀫𰀬𰀥𰀬𰀷𰀬𰀲𰀱𰀃𰀦𰀨𰀱𰀷𰀵𰀨
𰀺𰀺𰀺𰀑𰀲𰀩𰀩𰀶𰀫𰀲𰀵𰀨𰀲𰀬𰀯𰀬𰀱𰀧𰀬𰀤𰀑𰀦𰀲𰀰
_______________ 𰀺𰀺𰀺𰀑𰀸𰀱𰀦𰀲𰀱𰀹𰀨𰀱𰀷𰀬𰀲𰀱𰀤𰀯𰀲𰀬𰀯𰀤𰀱𰀧𰀪𰀤𰀶𰀐𰀬𰀱𰀧𰀬𰀤𰀑𰀦𰀲𰀰
_______________________
𰀰𰀸𰀰𰀥𰀤𰀬𰀏𰀃𰀬𰀱𰀧𰀬𰀤

First Name: Last Name:

Position:

Company:

Complete Mailing Address:

Postal code:

Country Code: Telephone: Fax:

Email:
Registration confirmation will be sent via-email, if a unique email address is provided above.

1. Type of Company or Organization: 2. Job Function: 3. Areas of Interest/Involvement:

𰁒 10 Oil/Gas company 𰁒 20 Consulting Company 𰁒 02 Management (CEO, [Link]) 𰁒 10 Exploration 𰁒 39 Financial
𰁒 30 Contractor 𰁒 40 Engineering/Construction 𰁒 05 Engineering/Technical/Geoscience 𰁒 01 Production 𰁒 29 Gas Processing
𰁒 50 Financial 𰁒 60 Service/Supply 𰁒 06 Superintendent/Field Professional/Foreman 𰁒 23 Pipeline/Transportation 𰁒 19 Petrochemical
𰁒 65 Government/Library/Education 𰁒 10 Purchasing/Consulting 𰁒 115 Refining 𰁒 05 Drilling
𰁒 70 Other _______________________________________ 𰁒 12 Other _______________________________________ 𰁒 46 Other ___________________________________

4. Purchasing Role: 𰁒 Specify 𰁒 Recommend 𰁒 Approve 𰁒 None

5. Indian Oil Companies & Other Government Agencies

For Information on Conference Fees:
• Access to all Conference Sessions
1. Individual Delegate (Full Conference Registration)*
corporate packages, • Access to the Exhibition Hall, including Opening & Networking Receptions
• Access to all Conference Sessions and Conference Proceedings
contact Registration • Coffee Breaks in Exhibition Hall
• Access to the Exhibition Hall
Phone: +1 918-831-9160 • Delegate lunch on Wednesday, Thursday and Friday (Ticketed)
• Coffee Breaks in Exhibition Hall
Email: registration@[Link] • Conference Proceedings
• Delegate Lunch on Wednesday Thursday and Friday (Ticketed)
• Conference Proceedings 𰁒 Paid by 12 August 2011 $ 190
3 ways to register: 𰁒 Paid after 12 August 2011 $ 220
𰁒 Paid by 12 August 2011 $ 440
Pre-register on line before 𰁒 Paid after 12 August 2011 $ 510
6 September 2011. 6. Single Day Conference Delegate
Register on site after • Access to all Conference Sessions on the corresponding day
6 September 2011. 2. Corporate Plan (10 delegates)*
• Access to the Exhibition Hall, including both the Opening & Networking Receptions
• Access to all Conference Sessions
• Coffee Breaks in Exhibition Hall.
1 • Access to the Exhibition Hall, including Opening & Networking Receptions
• Luncheon on corresponding day (Ticketed)
Fax: • Coffee Breaks in Exhibition Hall
Direct: +1 918 831 9161 • Delegate Lunch on Wednesday, Thursday and Friday (Ticketed) Paid by 12 August 2011 Paid after 12 August 2011
Toll-Free (US only): • Conference Proceedings 𰁒 Wednesday𰁒 @ $ 190 𰁒 @ $ 220
+1 888 299 8057 𰁒 Thursday 𰁒 @ $ 190 𰁒 @ $ 220
𰁒 Paid by 12 August 2011 $ 3710
𰁒 Friday 𰁒 @ $ 190 𰁒 @ $ 220
𰁒 Paid after 12 August 2011 $ 4370
2
Website:
[Link] 7. Exhibit Visitor
3. Exhibitor Delegate (Exhibiting Companies Only)
Pre-registered visitors FREE
Exhibit booth staff can upgrade their registration to include access to
3 the conference at a discounted rate
(Deadline to pre-register September 6, after September 6 register onsite).
Mail: •Access to the Exhibition Hall, including Opening & Networking receptions,
• Access to all Conference Sessions and Conference Proceedings
PennWell C&E Registration (OIUOGI) Coffee breaks in Exhibition Hall
• Access to the Exhibition Hall, including move-in and move-out
P.O. Box 973059 • Access to Opening & Networking Receptions Free before 6 September 2011 𰁒
Dallas, TX 75397-3059 USA • Coffee Breaks in Exhibition Hall
• Delegate Lunch on Wednesday, Thursday and Friday (Ticketed)
For questions please call:
• Conference Proceedings TOTAL PAYMENT
Phone: +1 918 831 9160
𰁒 Paid by 12 August 2011 $ 230 (In US Dollars only)
Toll Free (US only):
+1 888 299 8016 𰁒 Paid after 12 August 2011 $ 275
=$

4. Operators Partner Program (OPP)

Unlimited Delegates - Open to Operators only. For further details please visit
the Registration page on [Link] 𰁒𰀃$ 2500

Payment must be received prior to the conference. *Your full-price registration fee includes a one-year paid subscription to Oil & Gas Journal. (US $69 value)
If payment is not received by the conference date, the
registration fee must be guaranteed on charge card Method of Payment: 𰁒 Check enclosed payable to Pennwell/OIUOGI 2011
until proof of payment is provided. Make check payable
to PennWell/Offshore India and
𰁒 Wire (Wire information will be provided on invoice) Credit Card: 𰁒 Visa 𰁒 Mastercard 𰁒 AMEX 𰁒 Discover
Unconventional Oil & Gas India .
Cancellation: Cancellation of registration must be Credit Card Number Expiry Date
received in writing. Any individual, exhibitor or cor-
porate registrations cancelled before 12 August 2011
will receive a 50% refund of registration fee. After 12 Full Name (as it appears on card):
August 2011 no refunds will be permitted.
Substitutions may be made at any time by contacting
the registration office In writing.
Card Holder Signature: Date:
(Required for credit card payment)

CONFERENCE & EXHIBITION

July 19 – 21, 2011

Calgary TELUS Convention Centre
Calgary, Alberta, Canada

every drop counts

Today’s Technology for Tomorrow’s Oil

Don’t miss these opportunities at Oil Sands and Heavy Oil Technologies
Conference & Exhibition 2011.

LEARN about new technologies unlocking the potential of a huge and challenging
hydrocarbon resource.

DISCOVER how innovations in the Canadian oil sands improve environmental performance
of all petroleum operations, everywhere in the world.

NETWORK with leaders from companies working on the rapidly advancing frontier of
energy supply.

SHARE your expertise and business acumen with decision-makers developing technology
today for oil tomorrow.

The conference will cover the full spectrum of technologies crucial to production, processing,
and environmental remediation, with plenary sessions on nontechnical issues and specific
projects.

The exhibition will include key players in the industry displaying the latest technologies
and products.

Register today at [Link]

Want More? Register for the specialty forums on sulfur management, geophysics, and the
basics of oil sands and heavy oil.

Owned & Produced by: Presented by:

PennWell’s Offshore Group

UNPARALLELED ACCESS TO THE WORLD

GALVESTON, TEXAS USA NEW ORLEANS, LOUISIANA USA

MARCH 6-8, 2012 OCT 11-13, 2011

iShow Daily iShow Daily

Wall Chart Wall Chart

20,689
E-newsletter: Subsea E-newsletter: North Sea
magazine circulation

NEW ORLEANS, LOUISIANA USA

GALVESTON, TX - USA
JAN 31-FEB 2, 2012
NOV 1-3, 2011

1,354
Wall Chart
magazine circulation

E-newsletter: Gulf of Mexico

Contacts:
Mark Peters, VP & Group Publisher ABUJA, NIGERIA
markp@[Link] JAN 24-26, 2012
Tel +1.713.963.6260

David Davis, Global Sales Manager Wall Chart

davidd@[Link]
Tel +1.713.963.6206 E-newsletter: Offshore West Africa

[Link] [Link] [Link] [Link]

PennWell’s Offshore Group blankets the international petroleum

market with content, technologies and solutions for tomorrow’s
key challenges. With the reach of One World you need only
One Source. Visit us online at [Link]

9,340
magazine circulation

MUMBAI, INDIA
1,920
SEP 12-16, 2011
magazine circulation

8,731
2,536
magazine circulation
magazine circulation
KUALA LUMPUR, MALAYSIA

FEB 21-23, 2012

DOHA, QATAR

JAN 21-23, 2013

iShow Daily

Wall Chart

E-newsletter: Offshore Middle East

[Link] [Link] [Link] [Link] [Link]

BUSINESS BRIEFS

People ing manager. Randy Shepherd to

Keppel Offshore & Marine has appointed Bahamas Petroleum has appointed Paul manage the HUB-
Chow Yew Yuen as managing director. Based Gucwa as COO. He has 37 years of experi- Zone (Historically
in Singapore, he will assist the CEO in all as- ence as a geoscientist and in technical and Underutilized Busi-
pects of Keppel O&M and will continue in his business management roles developing explo- ness Zones) program.
role as the president of the Americas, in which ration and production Shepherd has more
he oversees the group’s business covering the projects throughout than 25 years of
US, Mexico, and Brazil. the US and Canada. federal contracting
Leif-Arne Langøy has been elected chair- O’Brien’s Re- and procurement
man of the board of directors of Det Norske sponse Management management experi-
Veritas. Walter Qvam has been elected chair- has named retired ence at the project Shepherd
man of the DNV Council. Morten Ulstein has Coast Guard Capt. and executive levels.
been elected vice chairman of the DNV board. Roderick Walker as Paradigm has
Edward A. “Ted” Beaumont, senior manager of consult- appointed Bruce P.
geologist with SM Energy, is president-elect ing services. Koch as CFO.
of the 36,000-member American Association of Adira Energy Knight Oil Tools
Petroleum Geologists. He will serve as AAPG Walker has appointed Hezi has appointed
president in 2012-13. Kugler as CEO. Matthew Scott as
SEMPCheck Services has appointed Anton TDW has ap- corporate account
du Preez as VP of auditing and SEMS (Safety pointed John Ball representative.
and Environmental Management System). as country man- Aker Solutions
He will be responsible for the development of ager, U.K., for T.D. has appointed Harry
SEMPCheck’s SEMS program. Williamson (U.K.) Kulasinghe as VP. He Scott
Common Data Access has appointed Ltd. Ball will be will lead the business
George Rorie, Roy Rees-Williams, Anne responsible for sales development, con-
Hegarty, and Jeremy Lockett to its board of development and ex- tracts and tendering
directors. Rorie is the head of subsurface and ecution, the mainte- departments of the
wells information management for Shell Up- nance of operational engineering construc-
stream International Ball excellence, and team tion services firm’s
– Europe. Rees-Wil- management. subsea business unit.
liams is team lead of Apache has appointed Jon Jeppesen as U.S. Steel Corp.
records management executive VP. He will oversee the operations in has appointed David
for Nexen Petroleum. the Gulf of Mexico shelf, deepwater, and Gulf L. Britten as vice
Hegarty is leader of Coast onshore regions. Jon Graham has been president – tubular
data management at named VP of the global environmental, health technology and busi- Kulasinghe
Statoil ASA. Lockett and safety organization. Mark Bauer has ness development.
is the exploration been promoted to region VP for the Gulf of H. Martin Gibson has joined SNR Denton
manager for Centrica Mexico shelf. Michael Bose has been named as a partner in the energy practice.
Plc. region VP and country manager for Argentina. PIDX has elected Anthony Aming,
Ophir Energy has Heslop Graham Lawton has been named VP of LNG president and director; John Hardey, vice
appointed Nick Coo- projects, leading the Kitimat project team for president; Michael Lanier, Standards and
per to the board as the LNG facility and Pacific Trail pipelines. Guidelines Committee chairman; Terry
managing director. Kenny Paterson Thomas, International Business Development
EnQuest has has been named VP, Committee chairman; Dave Wallis, Marketing
appointed David Hes- LNG marketing and Committee chairman; Ann Rolison, at-large
lop as United King- shipping, of Apache Executive Committee member; John Board-
dom continental shelf Energy Ltd. man, at-large Executive Committee member;
general manager. LORD Corp. has Steve Green, at-large Executive Committee
Heslop has more than appointed Edouard member; Dan Collins, past president.
30 years of interna- Cassal as the head of Coates Offshore has appointed Bruce Stra-
tional oil and gas in- the oil and gas depart- chan as QHSE manager and Mark Bullmore
dustry experience in McHattie ment for the EMEA as engineering services manager.
production operations region.
and in wells and sub- Willbros Group has Cassal
surface management; re-elected William B.
including senior roles Berry and Arlo B. DeKraai and elected Dan-
at Talisman Energy, iel E. Lonergan as Class III directors to the
Mobil Oil, and Sch- board. The company has appointed Michael
lumberger. C. Lebens to the board as a Class I director.
Deep Casing Tools Dril-Quip has named Blake T. DeBerry
has appointed Ken as senior VP of sales and engineering, and
McHattie as finance James A. Gariepy as senior VP of manufac-
director, and John turing, project management, and service.
Prescott as market- Prescott American Pollution Control Corp. has hired Strachan and Bullmore

110 Offshore July 2011 • [Link]

BUSINESS BRIEFS

The Cross Group has appointed Frank G. GE have opened a regional services center in will accommodate Marlink’s field engineers
Terrell Jr. as VP of business development. Kuala Lumpur, Malaysia. and logistics personnel and is positioned to
Helix Energy Solutions Group has ap- Seadrill says tendering and contract- enable the company to expand support for its
pointed Cliff Chamblee as executive VP, ing for ultra-deepwater rigs worldwide has growing customer base in the Nordic region.
contracting services. improved significantly this year. Available rig Hyundai Heavy Industries has selected
The Artificial Lift Co. has appointed Alex- capacity has also been absorbed rapidly. De- Converteam to design and supply high ef-
andre Kosmala as CEO. spite the fall-out from the Macondo incident ficiency electrical systems for three newbuild
Jee has added Jonathan Lindsay to the last year, the company says utilization rate ultra-deepwater drillships for Noble Corp.
management team. He will head up the Aber- in the ultra-deepwater market (up to 7,500 ft, The Hyundai Gusto P10000-designed drill-
deen office and be responsible for operations or 2,286 m water depth) has remained nearly ships, rated for operations in up to 12,000 ft
and performance. 100%. (3,657 m) water depth, are under construc-
Woodside has appointed Peter Coleman as Flexlife, a subsea project and integrity tion by HHI at its Ulsan facility in South
CEO and managing director. management consultancy, has moved to an Korea. The first vessel is due for delivery
Knight Oil Tools has named Joe Lee direc- 8,000 sq ft headquarters at Aberdeen Science to Noble in early 2013 with the third due in
tor of the Jar product line. Lee will oversee and Energy Park. early 2014.
new jar manufacturing operations in addition ABB has announced plans to establish a The Bureau of Ocean Energy Man-
to the maintenance and servicing of used Azipod C factory, marine service center, and agement, Regulation, and Enforcement
equipment at the Knight Oil Tools Jar facility specialized Azipod service center in Brazil. (BOEMRE) and the National Oceanic and
in Broussard, Louisiana. Several locations including Pernambuco, San- Atmospheric Administration (NOAA)
Hyperdynamics has appointed Bonnie tos, and Rio de Janeiro, have been evaluated announced that they have signed a landmark
Milne-Andrews as manager of geological but the final decision has not been made. The memorandum of understanding to increase
operations. planned factory will have the annual capacity their coordination and collaboration to ensure
of more than 30 Azipod units. The actual environmentally sound offshore energy
Company news construction schedule will enable timely development.
Petrotechnics has opened an office in Sin- thruster delivery to Petrobras drilling units Enegi Oil has secured a four-month
gapore. The company says the move has the from Brazil. option to acquire the entire share capital of
potential to present more than £150 million RBG has recorded a safety achievement Advanced Buoy Technology (ABT), based
($250 million) of new business opportunities. by completing more than 2 million man-hours in Aberdeen, UK. ABT is privately owned
SeaHold GeoShips Ltd. has acquired without a lost time incident across the com- with an arrangement allowing it to take on
Brooklyn Shipping Ltd. Brooklyn Shipping pany’s Trinidad and Tobago operations. exclusive global rights to buoy technologies
will become a division of the GeoShips Group, Greene’s Energy Group, an oil and gas developed by Ocean Energy and Resource,
and will continue to be managed by managing specialty testing, rental, and service busi- and suited for marginal oil and gas fields.
director Rennie Cameron. The company will ness, has opened an Asia/Pacific operational Weatherford has acquired CygNet
retain its own name and branding, while sup- base, Greene’s Energy Group Asia Pacific Software, an enterprise operations platform
plying GeoShips and the industry with marine Pte. Ltd., in Singapore. The new base will provider.
management services. service specifically the Pacific Rim and GE Oil & Gas’ drilling and production
Statoil has signed a new framework agree- Southeast Asia to include, Singapore, Malay- business has been selected to supply high-
ment with Norwegian research center Sintef sia, Indonesia, Thailand, Brunei, Vietnam, pressure/ high-temperature equipment to
valued at potentially $186 million. The accord Papua New Guinea, Australia, New Zealand, Bien Dong Petroleum Operating Co.
is valid for four years with an option for two and China. The base will also be used to for the development of gas fields offshore
plus two years. service the Middle East and India. John John- Vietnam.
Noble Energy has received $97 million ston, GM of Asia Pacific and Middle East, Fifth Ring, an international integrated
compensation for the transfer of its interests will lead the company’s expansion initiative. communications agency, has opened an office
in Ecuador to various government-affiliated Johnson has more than 29 years of industry in Kuala Lumpur.
entities. The settlement included the offshore experience. Stork Technical Ser vices and Arle have
Amistad field assets and the block 3 pro- Arc Machines Inc. has consolidated all acquired RBG, the UK based supplier of in-
duction sharing contract, which Ecuador’s its UK activities, including customer support, spect, assess, and repair services to the global
government terminated last November. operator training, equipment maintenance, energy industry.
EnerMech has secured a £20 million and repair and spares supply, into a facility in Forum Energy Technologies Inc. says
($32.9 million) contract to supply tools and Daventry, Northamptonshire. it has acquired Specialist ROV Tooling
rental equipment to Wood Group PSN. The DnB NOR has announced it will open Ser vices Ltd. of Insch, Scotland. Specialist
five-year contract includes the supply and an office in Aberdeen. DnB NOR, Norway’s ROV provides intervention tools and custom
rental of generators, air compressors, lifting largest financial institution, will be the first products for subsea intervention.
and rigging equipment, the supply of hand international energy bank to establish an of- NSIG has changed its name to Energy
tools and consumables, and the repair, ser- fice in Aberdeen. North as part of a strategic rebrand and
vice, maintenance and storage of Wood Group Conductor Installation Ser vices Ltd. expansion of activities.
PSN-owned equipment. has been awarded the largest contract in its KHE Group and Habau have agreed on a
Exova has opened its revamped Aberdeen history by Weatherford Nigeria. The multi- sale of 100% of the shares in the Nacap group
laboratory. The company has invested more million dollar contract requires CIS to provide of companies. Under the agreement, Nacap
than £100,000 ($164,000) to expand its range a range of conductor installation services in activities will be combined with similar activi-
of oil and gas services to now include fracture Nigeria on behalf of two major operators in ties within the Habau Group.
mechanics testing for its international off- the region. iNPIPE PRODUCTS has been acquired
shore clients. Marlink has opened a new customer sup- as part of a management buy-out supported
SapuraCrest Petroleum Berhad and port office in Stavanger, Norway. The office by private equity investor, Meridian Equity.

[Link] • July 2011 Offshore 111

C L A S S I F I E D A D V E RT I S I N G

• Display Ads: $235.00 per column inch. Same discount as above. 15% agency commission. $235.00 minimum charge for inser-
tions. Page size is 3 columns wide by 10 inches deep. One Column = 2.25” wide, Two Columns = 4.75” wide, Three Columns = 7”
wide. Minimum Size: 1 Column X 1 Inch.
• Deadline for classiﬁed advertising is the 15th of the month preceding publication. Contact Glenda Harp, (918) 832-9301, or
fax your ad for a quote (918) 832-9201. E-mail: glendah@[Link]
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112 Offshore July 2011 • [Link]

Offshore Webcasts Helps You Reach

Your Target Audience.
Our webcasts are unmatched as quality
lead generators for our sponsors.

We deliver full contact information for

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Anyone wishing to view the webcast must

provide complete information to register

Webcasts continue to register potential clients

for up to one year after initial release date

Offshore webcasts postition sponsors as

leaders in their specific industry arenas

Archived Offshore Webcasts:

February 24, 2011 - Meeting the Challenges of Arctic Development October 5, 2010 - Drilling With Power: The Importance of Power
Sponsor: ION Geophysical - Leads: 750 Generation in the Offshore Sector
Sponsor: Caterpillar - Leads: 526
February 16, 2011 - Advancements in Synthetic Rope Technology for
Dynamic Bending Applications September 23, 2010 - Gulf of Mexico Decommissioning Market Outlook
Sponsors: DSM Dyneema, Samson - Leads: 392 Sponsors: Boots & Coots, Halliburton - Leads: 1,086
January 11, 2011 - Emergency Response March 31, 2010 - Selection of Deepwater Floaters for Field Development
Sponsors: ASSI, Boots & Coots, Cudd Well Control - Leads: 766 Sponsor: KBR - Leads: 1,428
December 7, 2010 - “Top 5” Offshore Projects of the Year February 25, 2010 - Recent Innovations in Mooring Technology
Sponsor: FMC - Leads: 1,282 Sponsor: Intermoor - Leads: 910

October 28, 2010 - Tesco Casing Drilling Webcast Remember: These archived Offshore webcasts
Sponsor: Tesco Corp - Leads: 1,263
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For Upcoming Sponsorship Opportunities, contact:

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Site License

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ADVERTISERS INDEX

A O
Aker Solutions ...........................................25 Orr Safety Corporation .. ...........................69
SALES OFFICES [Link]/subsea
Allseas Group SA ......................................95
[Link]/kong

PENNWELL PETROLEUM GROUP [Link] P

1455 West Loop South, Suite 400, Houston, TX 77027 American Petroleum Institute ...................71 Pacific Drilling ............................................38
[Link] [Link]
PHONE +1 713 621 9720 • FAX +1 713 963 6228
David Davis (Worldwide Sales Manager) Axon Energy Products ..............................51 PennWell
davidd@[Link] [Link] Deep Offshore Technology
Conference & Exhibition ................ 59-64
Bailey Simpson (Regional Sales Manager) [Link]
baileys@[Link] C Deepwater Operations
Glenda Harp (Classified Sales) glendah@[Link] Cameron .....................................................13
[Link]/camforce Conference & Exhibition ......................93
[Link]
Capenter Technology Group .....................45
GREATER HOUSTON AREA, TX [Link]/energy Offshore Asia Conference &
David Davis davidd@[Link] Exhibition ..............................................53
Clover Tool Company ................................57 [Link]
[Link]
Offshore Group ................44, 58, 108-109
USA • CANADA [Link]
Bailey Simpson baileys@[Link] D Offshore India Conference &
Devin International ....................................29
[Link]/portfolio Exhibition .................................91, 99-106
UNITED KINGDOM • SCANDINAVIA • [Link]
Dril-Quip .................................................... C3
THE NETHERLANDS [Link] Offshore Webcasts ............................. 113
9 Tarragon Rd. [Link]
Maidstone, Kent, United Kingdom ME16 OUR Offshore West Africa Conference &
PHONE +44 1622 721222 • FAX +44 1622 721333
E Exhibition ..............................................33
ENSCO PLC................................................21
Roger Kingswell rogerk@[Link] [Link] [Link]
OIl & Gas Journal Site License.......... 114
FRANCE • BELGIUM • PORTUGAL • F Oil Sands and Heavy Oil Technologies
SPAIN • SOUTH SWITZERLAND • MONACO Fluor Corporation ......................................35
[Link] Conference & Exhibition ....................107
• NORTH AFRICA [Link]
Prominter FMC Technologies .................................... C4
[Link] PennEnergy Research ..........................88
8 allée des Hérons, 78400 Chatou, France [Link]
PHONE +33 (0) 1 3071 1119 • FAX +33 (0) 1 3071 1119 Forum Energy Technologies........ .............55
[Link] PennWell Books........................85, 86, 92
Daniel Bernard danielb@[Link] [Link]
Frank Mohn Flatoy AS ...............................79
[Link] Subsea Tieback Forum &
GERMANY • NORTH SWITZERLAND • Exhibition ..............................................98
Fugro...........................................................31 [Link]
AUSTRIA • EASTERN EUROPE • [Link]
RUSSIA • FORMER SOVIET UNION • BALTIC Topsides, Platforms, & Hulls
• EURASIA Conference & Exhibition ......................89
Sicking Industrial Marketing, Kurt-Schumacher-Str. 16
G [Link]
GE Oil & Gas........ ......................................23
59872 Freienohl, Germany [Link]/DTLearn
PHONE +49 (0) 2903 3385 70 • FAX +49 (0) 2903 3385 82 Q
Global Industries........ ...............................17 Quality Connector Systems ......................97
Andreas Sicking wilhelms@[Link] [Link] [Link]
Green’s Energy Group........ .......................75
ITALY [Link] R
SILVERA MEDIAREP Rapid-Torc ..................................................16
Viale Monza, 24 - 20127 Milano, Italy H [Link]
PHONE +39 (02) 28 46716 • FAX +39 (02) 28 93849 Harris CapRock......... ...................................9
Ferruccio Silvera info@[Link] [Link]/energy-om S
Hempel AS........ ..........................................81 Sandvik Materials Technology ..................77
[Link] [Link]/oilgas
BRAZIL / SOUTH AMERICA Hytorc..........................................................39 Schlumberger ..............................................5
Grupo Expetro/SMARTPETRO, Ave. Erasmo [Link] [Link]/eclipse
Braga 227, 11th floor
Rio de Janeiro RJ 20024-900, BRAZIL Seaway Heavy Lifting B.V..........................67
I [Link]
PHONE +55 (21) 2533 5703 or +55 (21) 3084 5384 InterMoor ....................................................42
FAX +55 (21) 2533 4593 ShawCor ..................................................... 11
[Link] [Link]
ogjbrasil@[Link], Url www@[Link] IPLOCA .......................................................18
Marcia Fialho [Link]@[Link] Siemens AG ................................................19
[Link] [Link]/energy
K SPE Offshore Europe ................................83
JAPAN [Link]
KBR .............................................................72
ICS Convention Design, Inc. [Link]/os
6F Chiyoda Bldg., 1-5-18 Sarugakucho Kobe Steel Ltd / Kobelco EDTI T
Chiyoda-Ku, Tokyo 101-8449, Japan Compressors, Inc. .....................................37 TDW Offshore Services ...............................1
PHONE +81 3 3219 3641 • FAX +81 3 3219 3628 [Link]/compressor [Link]
Manami Konishi konishi-manami@[Link] [Link] Transocean ................................................ C2
[Link]
SINGAPORE
L
L & M Radiator ...........................................36 V
19 Tanglin Road #05-20 Tanglin Shopping Center [Link] Variable Bore Rams, Inc. ...........................87
Singapore 247909 LAGCOE 2011 ........................................... 2-3 [Link]
PHONE +65 9616 8080 • FAX +65 6734 0655 [Link] Versabar Inc. ..............................................15
Michael Yee yfyee@[Link] Lincoln Electric ..........................................43 [Link]
[Link]
INDIA M W
Interads Ltd., A-113, Shivalik, New Delhi 110 017 McDermott International ...........................41 Weatherford..............................................6, 7
PHONE +91 11 628 3018 • FAX +91 11 622 8928 [Link] [Link]
Rajan Sharma rajan@[Link] Wild Well Control .......................................47
N [Link]
National Oilwell Varco................................27
NIGERIA/WEST AFRICA [Link]/rig The index of page numbers is provided as a
Flat 8, 3rd floor (Oluwatobi House) Newpark Drilling Fluids .............................48 service. The publisher does not assume any
71 Allen Ave, Ikeja, Lagos, Nigeria liability for error or omission.
[Link]
PHONE +234 805 687 2630 or +234 802 223 2864
Nylacast.. ....................................................10
Dele Olaoye q-she@[Link] [Link]

BEYOND THE HORIZON

Assessing the impact of the new

UK North Sea tax regime
The UK Government has been roundly criticized for the March of trust in government engendered by the change, may encourage
budget tax increases on North Sea oil and gas, taking rates up to some operators to bring forward decommissioning plans – precisely
62%; even 81% for some older fields. Its supporters have tried to ar- the reverse of what was intended. Industry is as determined to chal-
gue that with oil prices still at historically high levels, the industry lenge this “decoupling” of tax rates and tax relief as it is to challenge
can afford it. But this ignores some unpalatable truths. the increase in corporation tax on oil revenues.
Investment decisions by multinational companies are made on A related challenge is the application of tax relief to decommis-
the basis of the relative global returns, and the March rises are sioning security. In essence, if an oil company sells an interest in
likely to make the UK less attractive for oil investment compared an oil field and the new owner fails to pay for decommissioning, the
to other locations. This is not only in terms of absolute tax rates but UK government has the right to make the former owner pick up the
also in looking at the stability of the tax regime and the risk of future bill. This ensures that the taxpayer is not left to clean up the mess
increases. Already a number of projects have been put on hold while – and quite right, too. However, in practice it is very rare indeed
operators reconsider their options. for oil companies to default on their decommissioning obligations
It seems as if this message may have hit home, and some media and these wide-ranging powers have had unforeseen and damaging
reports have suggested that the government is considering requests consequences.
to extend the tax allowances for the development of new fields, per- To avoid the risk of having to pay costs in relation to assets they
haps by including a new category of small-field tax allowances to try have sold, sellers require purchasers to give security (usually in
to overcome the problems. But North Sea production is based on a the form of a letter of credit from a bank) for the estimated costs
complex web of inter-relationships and a tax allowance to encourage of decommissioning, including a big contingency. If everything
small-field exploration ignores the need for big-field infrastructure goes smoothly, much of this cost is likely to be set off against tax
on which the small fields piggy-back. (and therefore in effect paid for by government). However, asset
Most recent discoveries in the UK continental shelf are an order sellers are concerned that for various reasons such tax relief will
of magnitude smaller than those of earlier decades – their marginal not be available if the new owner defaults. The recent decision by
economics do not justify the construction of new export routes to the government to cap tax relief has just added to their worries on
shore. Instead, these fields rely on larger, older fields whose pro- this score. Therefore, they insist that security for decommissioning
duction is now declining which gives them spare capacity in their costs is given gross, without deduction for tax relief. Effectively, this
export pipelines. means that buyers have to give security for government’s share of
However, this is a difficult balancing act. If the older “host” field the costs.
ceases production, the full costs of operating the pipeline may fall on Many small companies have to put up collateral to persuade their
the owners of the smaller “satellite” fields, a situation which could banks to give the necessary letters of credit, or to deduct it from bor-
drive them to cease production early. The key is to maximize the life rowing limits – making less available to invest to develop the asset.
of the host installations. It is of small benefit to give tax allowances In the long run, everyone loses as investment is reduced.
to new satellite fields if the host field has itself been driven to early In its budget announcement the Treasury indicated its willing-
decommissioning by increased taxes. ness to try to tackle this issue but it’s not an easy nut to crack. One
Further muddling the picture is the decision to cap tax relief for of the features of the UK oil industry is the very high degree of
decommissioning at the level applied before the recent tax increase. cooperation on industry issues between industry and government,
Generally, decommissioning costs can be set off against tax, so the and the working group set up to address this particular problem is a
higher the tax rate, the more scope for setting off costs. prime example. Recent events may have placed a strain on relation-
The government’s thinking may have been that oil companies ships but both sides are working hard to put things back on track.
would look at its promise to bring down tax rates if the oil price falls Perhaps in the process, the industry can persuade the Treasury that
and might decide to decommission early to obtain the benefit of that in the oil sector things are perhaps not quite as simple as they ap-
high rate of tax relief. To avoid incentivizing early decommissioning, pear on the surface.
the government chose to cap the tax relief. Unfortunately, the com- Judith Aldersey-Williams
bined impact of the tax increase itself, and more importantly the lack Partner, CMS Cameron McKenna

This page reflects viewpoints on the political, economic, cultural, technological, and environmental issues that shape the future of the petroleum industry. Offshore
Magazine invites you to share your thoughts. Email your Beyond the Horizon manuscript to David Paganie at davidp@[Link].

116 Offshore July 2011 • [Link]

_____________

The low-hanging fruit is long gone. Every day it’s more of a challenge to increase oil and gas
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EnergyWorkforce For the industry’s career-minded professionals • Summer 2011

Meeting the Leadership

Challenges for Today’s
Energy Industry

Canadian Oil Sands:

Emerging jobs market

US Smart Grid:
Jobs through innovation

A supplement to PennWell publications • w [Link]

_______________________

Got jobs?
We’ve got people.

PennEnergy JOBS is the key to attracting the

energy industry professionals you need to hire to
meet your business goals. Our process puts your
recruitment message in front of the industry’s best
talent whether it’s online, in print, or at an event.
This approach offers you the flexibility to create
custom recruitment advertising campaigns best
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| Learn More |
Visit: [Link]
Call: 1-800-738-0134

EnergyWorkforce Stacey Schmidt, Publisher

staceys@[Link]

Phaedra Friend Troy, Content Director

phaedrat@[Link]
EDITOR’S LETTER
Dorothy Davis, Editor
P h a e d r a F r i e n d Tr o y, P e n n W e l l 2 dorothyd@[Link]

OIL SANDS Chad Wimmer, Art Director

chadw@[Link]
Canadian Oil Sands Creates
Daniel Greene, Production Manager
Emerging Jobs Market 4
danielg@[Link]

ENERGY WORKFORCE Tommie Grigg, Audience

Development Manager
The US Smart Grid: tommieg@[Link]
Jobs through Innovation 7
Dorothy Davis, PennWell

ENERGY INSIGHTS
Four Generations at Work 10
Volker Rathman, President of Collarini Energy Staffing PennWell Corporation
1421 South Sheridan Road
ENERGY INSIDER Tulsa, Oklahoma 74112
918 835 3161
Meeting the Leadership Challenges [Link]
for Today’s Energy Industry 12
–––––––––––––––––––––––––––
Bruce Bullock, Director of Maguire Energy Institute
at SMU Cox School of Business
Recruitment Advertising Sales:

Brent Eklund
Petroleum Account Executive
720 535 1264
beklund@[Link]

ADVERTISERS’ INDEX
Chevron ........................................................................................................................................ 3, Inside Back Cover
Doosan Engineering Services .................................................................................................................................... 11
El Paso Corp ............................................................................................................................................................. 9
Waldron Engineering .................................................................................................................................................. 5
Pennenergy Research .................................................................................................................................. Back Cover

[Link]
_________________________________

E d i t o r ’ s L e t t e r

T here’s a lot of good news out there these days. The economy seems to be
rebounding from its recent doldrums, and with it, hiring within the energy
industry has started to pick up. Additionally, growing energy demand worldwide
ensures that the industry will be hiring for some time to come.
This insatiable energy demand encourages a keen eye on innovation in both
the power and petroleum segments, pushing the industry – and its personnel – to
constantly strive for better technologies and safer practices.
In the power market, Smart Grid is the wave of the future. As countries and
communities improve energy efficiencies and learn to effectively utilize the power
grid, pioneering firms are striving to implement
technology-driven solutions for a better
tomorrow. This aggressive effort to realize
If you are looking for that perfect change requires a special workforce. Learn
job, use all the tools in your more about the Smart Grid and its implications
on the power job market on page 7.
toolbox. One essential job search
In the petroleum sector, field development
tool is PennEnergy’s extensive and refining technologies have improved,
power and petroleum job board. making Canada’s vast oil sands a realistic and
attainable energy solution for North American
markets. Learn what makes oil sands different
from other heavy oils, as well as recent research that supports strong, long-term
career growth in oil sands on page 4.
Innovative and effective leadership is required to guide the energy industry of
tomorrow. Learn how the Maguire Energy Institute at SMU’s Cox School of Business
is developing future energy leaders by focusing on purpose, ethics and transparency
on page 12.
If you are looking for that perfect job, use all the tools in your toolbox. One
essential job search tool is PennEnergy’s extensive power and petroleum job board.
Plan your next career move at [Link].

Good luck!
Phaedra Friend Troy

P.S. Interested in contributing to Energy Workforce? Drop me a line at

phaedrat@[Link].

2 F o r j o b o ppo rtu n i ti es , vi s it [Link] nnEne rgyJOB S.c om E ne rgyWork f orce

_______________

OIL SANDS

Canadian Oil
Sands Creates
Emerging Jobs
Market
A Q&A with Brian Coffman,
General Manager, Canada for
Maxwell Drummond International Q: What skills are best utilized/transferred
to the oil sands?
A: The technical complexities and challenges of oil sands
projects dictate “must-have” skills that are often sourced from
within the industry. However, this is not always the case with
certain skill sets and capabilities transferrable from other sectors
Q: What is the job outlook for Canada’s within the industry or from altogether different industries. For
oil sands? example, Project Management and Leadership are two areas
A: The job outlook for Canada’s oil sands is definitely healthy. within which Canadian-based oil sands producers have turned
From what we’re seeing within the context of Maxwell Drum- to other industries and/or geographies to source much needed
mond, there is little doubt that activity has returned to this talent. As a result, this area currently sees sizable groups of
particular sector over the past 12 months, helped in large part individuals from common geographies outside of Canada, many
by higher and more stable oil prices. Another strong indicator of whom had zero prior oil sands experience. Skills transfer and
is ongoing foreign investment, particularly from the Far East, knowledge sharing are possible and more and more companies
further demonstrating that opportunities in the oil sands are are likely to look to these as a means of getting work accom-
drawing interest globally. As projects are being ramped up, job plished.
opportunities are also becoming more apparent, and amongst
Maxwell Drummond’s client base, we are seeing very strong Q: What are the trends in leadership
demand for talent that is likely to last for some time. and executive level experience in the
developing oil sands arena?
Q: What kinds of positions are open in A: At executive levels, knowledge sharing and collaboration
the Canadian oil sands? are seeing marked increases. The oil sands present unique and
A: The range of opportunities in the oil sands is quite vast, varied challenges not seen by other sectors within oil and gas,
from technical to support to leadership functions. Projects and this is prompting more leaders to share ideas and learnings
are very complex and encompass needs across multiple not just on operational aspects, but also on the talent side of the
points in the value chain, and with strong resource require- equation. Maxwell Drummond is now looking at ways to broker
ments at every phase of the process, the number of different this knowledge sharing through the introduction of an Execu-
opportunities is significant. tive Exchange program this year.

4 F or j o b op po rtu n i ti e s , vi s it [Link] nnEne rgyJOB S.c om E ne rgyWork f orce

ENERGY
OIL WORKFORCE
SANDS

Q: Will positions be long term? place. The talent side will require creative approaches as there
A: There are often different skills required for development is unlikely to be enough supply generated through traditional
vs. operational phases, but many would suggest that the recruiting methods. This will require, in part, a fresh look at
existing opportunities are indeed long term. Consider that where talent is sourced, how that talent is developed and how
via the oil sands, Canada has proven reserves second only it is rewarded. The perception challenge will require ongo-
to Saudi Arabia, and that projects of this magnitude have ing efforts to engage the public on environmental and social
long schedules and competing projects are in various stages responsibility initiatives currently under way within the oil
of completion. Oil sands production is anticipated for years sands industry. —EW
to come, with any projected peaks being several years away.
Many are expecting oil sands opportunities to be robust for Brian Coffman joined Maxwell Drummond in Houston as a
years to come. Senior Consultant before transferring to Calgary to manage the
company’s Alberta operations in 2008. He has been involved with
Q: How will oil sands fit into the energy a range of search projects at the executive, mid-management and
outlook of tomorrow? technical levels in North America, the Middle East, Asia and
A: Oil sands have every potential to be a major contributor to Africa. Prior to joining Maxwell Drummond, Coffman worked
the future energy mix. The opportunities are there now, and in Human Resources for BHP Billiton. He has broad experience
if bullish projections on future oil price are accurate, these in international executive recruitment, human resource manage-
opportunities will continue to exist. Perhaps the greater chal- ment, performance management and appraisal, training, compen-
lenge will be around securing and retaining needed talent and sation, and compliance. Coffman has over 12 years of Executive
managing the ongoing perception of oil sands in the market- Search/Human Resources experience.

n X T

WALDRON Engineering & Construction, Inc.

is searching for qualiﬁed Engineers to join
our teams in both Roanoke, VA & Exeter, NH.
We are a global ﬁrm that specializes in the engineering, construction,
commissioning and testing of power generation, combined heat and
power, renewable energy, central heating and chilling facilities.
Waldron has provided creative analysis and innovative designs to over
150 customers in more than 20 countries and the list continues to grow.

Have experience in the power sector?

Want to be part of an inventive and energetic team?
Please submit resume and cover to:
Janis Merrow, HR Admin., jmerrow@[Link]

Positions at: [Link]

E n er gy Wo r k f o r c e F o r j o b o ppo rtu n i ti es, visit [Link] nnEne rgyJOB S.c om 5

OIL SANDS

OIL SANDS An interesting characteristic of the oil sands

composition is that the bitumen is held
The bitumen froth, the top layer, is then
mixed with naphtha, which acts as a solvent
in the viscous solution by encapsulating to further clean the bitumen, and is fed to
sand particles and water molecules. This a centrifuge. After this final separation, the
natural arrangement enables the relatively naphtha is removed, and the bitumen is
economic separation of the bitumen from upgraded to the quality of crude oil with
the inorganic solids. the addition of hydrocarbons, and then it is
transported via pipelines to refineries in the
Bitumen is thought to have begun as U.S. and Canada.
high-quality crude oil, which, during the
Canada’s oil sands Cretaceous period, and possibly from the In Situ Oil Sands Recovery
offer domestic oil supply same pressures that formed the Rocky For the remaining 80 percent of oil sands
to satisfy North American Mountains, seeped closer to the earth’s that lie too deep to be extracted with open-
demand surface. It rested on sloped, angular lay- pit mining, more mechanically complex and
ers of sediment, namely limestone, and expensive methods are required. Common
By Duncan Bennett
was degraded by bacteria into a thick, tar- methods of in situ extraction fall into two
like mass that was rich in carbon. About main categories, based on the substances
20 percent of oil sands lie close enough to employed: steam and solvent.
Of the major sites for extra-heavy oil de- the earth’s surface to be mined, covered
posits in the world – Venezuela, America, only by shale, sand and surface vegeta- Of these two categories, the most com-
Canada and Russia – Canada’s oil sands, tion. The remaining 80 percent, however, monly used is steam, and the most notable
in Alberta, are by far the largest and most requires considerably more effort. technique within that group is Steam As-
developed for recovery. sisted Gravity Drainage (SAGD).
Extracting Oil Sands
Canada’s oil sands are made up of three The method of extraction of bitumen from In SAGD, two horizontal wells are drilled
regions: Athabasca (northeast), Peace oil sands depends upon the depth of the parallel to each other, one running above
River (west) and Cold Lake (southeast). deposits. At shallow depths, about 75 the other. The upper well is used to inject
And together, the three regions encom- meters, the oil sands are mined with heavy steam into the oil sands, lowering the vis-
pass 54,400 square miles. excavation equipment. Beyond the shallow cosity of the bitumen and allowing it to drain
depths, however, “in situ” processes are down into the lower well.
The Composition of Oil Sands required.
Oil sands, sometimes called tar sands, Once enough bitumen has accumulated
are a mixture of extra-heavy crude oil, or Mining Oil Sands in the lower well, it is pumped to a vessel
bitumen, water and inorganic composites Roughly 20 percent of the oil sands at ground level, where it will be upgraded,
such as clay, quartz and trace minerals. The recovered are done so using open-pit in a process similar to the upgrading
exact composition of oil sands varies from mines – although the majority of the oil of mined bitumen, and transported to
site to site, but, in general, the mixture is produced is recovered by this method. refineries.
composed of 10 - 18 percent bitumen, 3 - 5 For the mining process, the overburden –
percent water, and 75 - 80 percent inorganic peat bog, clay and soil – is removed, and Geology and Extraction
composites. the oil sands are efficiently shoveled out of Although the recovery sites are relatively
the ground. close to each other, they have geo-
At room temperature, bitumen has the con- logical differences that require diverse
sistency of thick molasses, while at tem- The oil sands are then mixed with warm methods of extraction. For example, in
peratures below 50-degrees F, its physical water, which forms a slurry, so that they the Athabasca region there is very little
qualities are often compared to those of a are viscous enough to be piped to nearby overburden, so it is much more efficient to
hockey puck: it is black, dense and hard extraction facilities. There, the slurry is put employ open-pit mining. In the Cold Lake
to handle. Bitumen is composed of heavy into primary vessels for separation, where it and Peace River regions, however, where
hydrocarbons, most notably asphaltenes, forms three main layers – sand, water and the overburden is thicker, in situ methods
and in the reservoir, it is thick and sluggish. bitumen – according to weight. must be employed.

6 F o r j o b o ppo rtu n i ti es , vi s it [Link] nnEne rgyJOB S.c om E ne rgyWo rk fo rce

ENERGY WORKFORCE

The US :
Jobs through Innovation

By Dorothy Davis

Smart Grid research spotlights the growing potential of this

advanced energy sector and the job opportunities it presents

The evolving US Smart Grid is generating a lot of buzz

– and rightly so. The move to a smarter power delivery
system will transform the electric power industry from
a primarily centralized, producer-controlled network to
an advanced interactive model that promises to vastly
improve efficiency and integration, all while raising profits
and keeping costs competitive.

The Smart Grid will also serve to change and expand the
industry’s working relationships with its stakeholders. The
integration of advanced Information Technology will pave the
way to explore new business and create a broader spectrum
of employment opportunities as new skill sets become pivotal
to success.

The US Department of Energy (DOE) recognizing the inherent

economic, environmental and efficiency value of a Smart Gird,
has already awarded $3.4 billion in federal stimulus grants
toward its implementation.

Of those grants, the DOE designated $25 million specifically

toward investments that will help expand the manufacturing
base of companies that can produce smart grid systems.
According to the DOE, that funding will help to create tens of
thousands of jobs across the country. These jobs include high-

E n er gy Wo r k f o r c e F o r j o b o ppo rtu n i ti es, visit [Link] nnEne rgyJOB S.c om 7

ENERGY WORKFORCE

paying career opportunities for smart meter manufacturing Marcy Lowe summarizes six
workers; engineering technicians, electricians and equipment of the report’s most central
installers; IT system designers and cyber security specialists; findings:
data entry clerks and database administrators; business and
power system analysts; and many others. 1) Our sample identifies 334 relevant US
employee locations spread across 39
As a part of its expansive ongoing research into the impact states. These include 70 sites for hardware manufacturing,
of low carbon technologies, Duke University’s Center for 76 for hardware development, 63 for software development
Globalization, Governance & Competitiveness (CGGC) and services, and 125 company headquarters. Based on
recently released a comprehensive report outlining the effects levels of investment to date, we estimate that the US supplier
of the developing Smart Grid on the US job market with some segment alone — which does not include utility jobs — has so
very promising results. far created roughly 17,000 US jobs.

This recent Smart Grid research from Duke shines a spotlight 2) Smart grid provides a way for well-
on the growing potential of this advanced energy sector and established firms to transition from
the job opportunities it presents within the US. traditional products into new areas,
including new manufacturing opportunities.
Duke’s report titled, “US Smart Grid: Finding New For decades, a number of US firms provided equipment for the
Ways to Cut Carbon and Create Jobs,” puts a focus on power industry, but performed the manufacturing increasingly
identifying regions in the US that are already developing outside the US. Many of these firms are now transforming
or manufacturing products for a Smart Grid. The report from a device-only focus to new products including software,
also outlines how building the Smart Grid promises to not smart controls and communications. These new activities are
only assist in reducing carbon emissions, but also stimulate largely performed domestically.
technological innovations and create a significant number of
US jobs. 3) The fast-growing global market for
smart grid technologies presents valuable
Senior CGGC research analyst and lead author on the US export opportunities for US firms, large
Smart Grid report for Duke University, Marcy Lowe writes: and small. Smart grid, renewable energy and electric
vehicles are counted among the most promising sectors for
“Concentrated local and regional efforts can leverage important increasing exports in the National Export Initiative – the
partnerships in which R&D is directly connected to new product federal government’s goal, announced in 2010, of doubling the
development, commercialization, new business incubation, and nation’s exports in five years. Industry leaders such as Cisco,
workforce development. Such efforts are needed if the smart grid GE, Hewlett Packard and IBM are moving quickly into China’s
is to deliver on its considerable promise to reduce CO2, stimulate smart grid market. Much smaller US firms have also won large
technology innovation, and create jobs.” contracts in China and Europe.

The Duke team studied 125 leading US Smart Grid firms to 4) Future US job creation by vendors
assess their potential role in creating jobs. The report was will likely concentrate in high-value IT
able to identify 334 relevant US employee locations across innovations, product development and
39 states and reveals that current levels of investment by the systems design and engineering. Many
US supplier segment alone has created approximately 17,000 of the world’s leading smart grid vendor firms are either
domestic jobs so far. headquartered in the United States or have an extensive US

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ENERGY WORKFORCE

presence. A number of large and small US firms are also 6) Regardless of where smart grid products
pursuing breakthrough innovations in hardware – especially are made, many additional U.S. smart grid
those associated with renewable power, energy storage or jobs will be located in the service territories
electric vehicles. These activities are often performed in of participating utilities, which means they
domestic facilities to protect intellectual property. cannot be off-shored. These will include jobs not
covered in this study, such as direct employment with utilities,
5) Others are catching up quickly, so contractors and temporary field offices, engaged in performing
the United States will need to continue construction, installation, maintenance and ongoing services. By
emphasizing not just innovation but also definition, these will be local jobs. —EW
supportive policies. Chinese, Korean, Japanese and
Indian firms have reached US levels or surpassed them Marcy Lowe is a senior research analyst at the Center on
in selected innovative technologies, such as high-voltage Globalization, Governance & Competitiveness at Duke
transmission. Perhaps more important, several countries’ University. Her research applies a global value chain framework
smart grid goals reflect energy policies not currently to analyzing US job growth and technology leadership in clean
emphasized in the United States, including aggressive targets energy in the new, carbon-constrained global economy.
for renewable energy. Similarly ambitious targets in the
United States would increase demand for US smart grid firms’ Access the full US Smart Grid: Finding New Ways to Cut Carbon
products and encourage investment in related clean-tech and Create Jobs report and other timely research at the CGGC
innovations. website: [Link]

Natural gas—our focus, our future.

Natural gas. The optimum fuel in a low-carbon environment.
Clean, efficient, effective, diverse, domestic, and available
right now. And where natural gas goes, El Paso Corporation
goes. Exploring for natural gas across the nation’s
hottest shale plays. Building the first carbon-neutral
interstate natural gas transmission system.
Upstream, midstream, downstream,
El Paso is there, taking ideas from the
possible to the actual. Our team is
energetic and engaged, and
the work we do is essential.
Join us.

A future with El Paso Corporation—it’s a natural fit.

Follow us on
[Link]/careers (Referral source, please select “PEWF11”)
El Paso Corporation is an Equal Opportunity and Afﬁrmative Action Employer, M/F/D/V

E n er gy Wor k f o r c e F o r j o b o ppo rtu n i ti es, visit [Link] nnEne rgyJOB S.c om 9

ENERGY INSIGHTS

Four Generations
at Work
Benefit from working in a
diverse environment

By Volker Rathman, President of

Collarini Energy Staffing
Fact: The energy industry is aging.
That has an impact on many areas of an organization and on
your career. One of them, which is sometimes overlooked, is
how we get along with colleagues, supervisors and subordinates
from four different generations.

While some organizations train their employees to handle this,

not all of them do. Even so, it is up to each of us to use our
“emotional intelligence” in dealing with people from different
generations. Successful professionals distinguish themselves as
persons who are able to reach across the generational divides
to form relationships, allegiances and loyalties with all age
groups in the workforce.

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ENERGY INSIGHTS

Some folks have this skill and manage the process to reach To some extent, this reduced the need for personal interaction
out easily and intuitively. Others need a bit more learning, for them. Sometimes a quick phone call is fine for many in
coaching and an overall better understanding of both the this group.
obvious and subtle differences that exist within people of
different age groups. Generation X, 1965 to 1980, grew up in the cell phone age
with the ability to reach and be reached any time and any
One example of generational differences is found in the place. Somebody seeking a personal consultation, when a
methods and preferences of communication. quick call on the mobile will do, is likely more of an exception.

Members of the Silent Generation, born between 1925 Generation Y, born between 1981 to 1990, has it all and
and 1945, generally prefer a personal, one-on-one style of then some. Pictures, personal details, immediate access to
communication. They grew up with rotary phones, and they friends and family - impressions are shared immediately and
remember when phones were either not easily accessible or spontaneously across great distances. Even if the people they
were quite expensive. Once they got into the workforce they are calling are only a few feet away in the next cubicle.
adapted, but subconsciously the original memories remained
strong. That’s why a person from this group is usually more Be sensitive. Don’t assume that what works for you works for
comfortable with one-to-one communication. everybody else. What is “normal” for one may be unusual for
others and a bit odd for somebody else. A successful person
The Baby Boomers, born between 1946 and 1964, grew up with eyes on advancement to the next level will know how to
with touch phones and the ability to place calls more easily. integrate empathy for the differences in all of us. —EW

______________

ENERGY INSIDER

Meeting the As the Baby Boom generation retires, the industry faces
an impending talent shortage. At the same time, incidents
such as last summer’s Macondo spill, misinformed political
Leadership rhetoric regarding the industry’s practices, and a general
mistrust of business contribute to a lack of trust in the
Challenges for industry which if left unaddressed will exacerbate the
industry’s talent challenges.

Today’s Energy In the last few years, the Macguire Energy Institute at SMU’s

Industry Cox School of Business has added a number of programs

designed to prepare the leaders of tomorrow for the energy
industry. These include executive leadership programs,
By Bruce Bullock, Director of Maguire Energy Institute energy clubs, coursework and degree concentrations.
at SMU Cox School of Business However, we believe it’s the common elements across our
programs that provide the key building blocks for tomorrow’s
generation of leader.
Developing talent and defining purpose
to achieve success in energy We emphasize that defining an organization’s larger purpose
comes first. If done properly and employees are focused on
organizational success, profits will follow. The millenials
graduating today want to do well in their careers and do
Meeting the global demand for reliable and “good” in society as well.
affordable energy is requiring technology,
investments and talents to manage them on Perhaps no other industry offers such a unique opportunity
a scale never before witnessed. Industry’s of individual opportunity and economic progress. In
workforce is becoming increasingly global, ExxonMobil’s 2010 Outlook for Energy, Exxon Mobil
skilled and sophisticated. Chairman and CEO Rex Tillerson writes “By enabling
people to become more productive – and expanding the

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ENERGY INSIDER

opportunities – access to reliable, affordable energy can industry “do the right thing,” our transparency has been
transform people’s lives and the communities in which lacking or has come late. We emphasize that the default
they live.” In our discussions with students, we have found mode of new leaders should be one of openness; and when
this combination of opportunity and progress to be very asked for information, their first thought is, “Why not?”
attractive to our graduates.
Finally, we expose our students to the depth and breadth,
Second, we emphasize maximizing value for multiple myths, realities, and misunderstandings of the energy
stakeholders – employees, shareholders, customers, industry. No other industry combines the business,
communities and suppliers. Too often, one stakeholder economic, political and technological complexities on as
group is pitted against another, or decisions forsake one large of a scale as the energy industry does. While we can’t
stakeholder group for another. In the energy industry, this prepare tomorrow’s leaders with all of the answers, we can
type of practice in the future will threaten its license to prepare them to ask the right questions. —EW
operate. Thoughtful, balanced management decision-making
on the part of future leaders entering the workforce will Bruce Bullock has served as director of the Maguire Energy
provide of base of business, industry, employee and public Institute at SMU’s Cox School of Business since May 2007.
support necessary to move the industry forward. Under his leadership, the institute has implemented a new
energy finance concentration within the Cox School’s MBA
Third, we teach the value of trust. Trust requires program, restarted the school’s Frank Pitt’s energy lecture
transparency, courage, conviction and humility. In the past, series, and grown the school’s student energy organizations to
the largest and most active organizations on campus. Prior to
transparency has been used against our industry. But less joining the Cox School, Bullock served as director of Corporate
transparency has led to less trust, and the cycle continues. Communications for FMC Technologies, Inc., a leading oilfield
While in nearly every instance, managers in the energy equipment supplier in Houston, Texas.

RESERVOIR SIMULATION ENGINEER

Houston, TX
Duties include: Perform reservoir simulation studies and other reservoir engineering services for Chevron operating companies and
affiliates without assistance from an experienced reservoir simulation mentor. Provide reservoir simulation study support including
evaluation of reservoir engineering data including laboratory core measurements, well logs, oil and gas fluid properties, production
data and reservoir pressure data. Collaborate with geophysicists and geologist to develop and understand the distribution of rock
facies and rock properties within the reservoir. Salary: $139,100 (8 AM – 5 PM, 9/80). Degree & Experience Requirement: Bachelor's in
Petroleum Engineering or Petroleum & Natural Gas Engineering and five (5) years progressively responsible, post-baccalaureate experi-
ence in the job offered or as a Petroleum or Reservoir Engineer. Will also accept a Master's in Petroleum Engineering and three (3)
years experience in the job offered or as a Petroleum or Reservoir Engineer. Skill Requirements: Analysis of field and laboratory
measurements of rock and fluid properties and applying engineering theories to estimate rock properties and fluid behavior at
reservoir temperature and pressure; assimilate data into hypothetical construct of oil or gas reservoir and testing hypothetical model
for consistency; evaluate reserves uncertainty associated with development of oil and gas fields; application of geostatistical
methods and geophysical and geological principles to build computer models with realistic distribution of rock properties; history
matching reservoir simulation models Any suitable combination of education, training or experience is acceptable.

Submit resumes to: Recruitment and Employment Office, CHEVRON CORPORATION,

Attn: Job Ref #CHE83144, P.O. Box 56625, Atlanta, GA 30303. E/O/E.

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