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For continuous news & analysis www.offshore-mag.com
March 2011
World Trends and Technology for Offshore Oil and Gas Operations
Caspian production to ramp up Downhole monitoring & control
Seismic vessel survey
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Quartet
HIGH-PERFORMANCE DOWNHOLE RESERVOIR TESTING SYSTEM
Con ntrol
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All Together Better Reservoir Testing During exploration offshore, a client saved four days of rig time while acquiring high-quality pressure measurements and reservoir-representative fluid samples.
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Measurre
Combining four leading testing technologies into one advanced string design, the Quartet* system allows you to isolate, control, measure, and sample– all in a single run. Be certain. www.slb.com/Quartet
Global Expertise Innovative Technology Measurable Impact
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CLEANER
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International Edition Volume 71, Number 3 March 2011 CONTENTS
Celebrating Over 50 Years of Trends, Tools, and Technology
GEOGRAPHIC FOCUS: CASPIAN SEA Operators to step up Caspian Sea production ..................... 30
34
FLOWLINES AND PIPELINES Simulated service vessel enhances deepwater pipeline insulation testing ................................ 61 To ensure the continuous flow of hydrocarbon fluid through subsea oil and gas pipelines, thermal insulation coating is often applied to the piping systems to maintain the operating temperature of the conduit.
As the largest enclosed body of water on Earth, and with petroleum reserves in excess of 50 Bboe, the Caspian Sea is a major offshore oil and gas province.
Dragon lays foundations for growth at Turkmen offshore complex ............ 34 Development of the Cheleken Contract Area (CCA) fields off Turkmenistan enters a new phase.
65
It appears that, when it comes to the fortunes of the U.S. deepwater E&P industry that supports much of its activity, Port Fourchon, Louisiana, has a short way to go, but it is taking a long time to get there.
GEOLOGY & GEOPHYSICS Seismic vessel count regains numbers................................. 36 Offshore’s seismic vessel survey for 2011 shows both new vessels and some additional players.
Drilling stoppage leaves port slow but hopeful ......................... 66 Greater Lafourche Port Commission director Chett Chiasson’s ‘baptism of fire’ goes with the territory.
Interpreting site survey data in a 3D world....................................... 44 Properly interpreting site survey data prior to deploying an offshore oil rig always has been crucial to drilling exploration or production wells.
DRILLING & COMPLETION Bottom line benefits justify deepwater IWS......................... 48 Installing intelligent well systems in multi-zone completions pays off despite challenges.
ENGINEERING, CONSTRUCTION, & INSTALLATION Developing testing criteria for long-lifespan ropes ....................... 50 Synthetic fiber rope is widely accepted for moorings beyond 1,000 m (~3,280 ft) water depth.
PORT FOURCHON No easy task: Getting there from here ...................... 65
PRODUCTION OPERATIONS Using delayed-action filter cake breaker to maximize production ........ 52 Achieving optimal production or injection from a well involves careful planning before drilling.
SUBSEA Deploying hybrid riser solutions for harsh environments ...................... 55 Two joint industry projects (JIPs) take a look into use of deepwater hybrid risers for harsh North Atlantic environments.
Subsea processing advances to meet industry needs....................... 59 The offshore industry, in particular the Gulf of Mexico, is still in a retrospective mode, assessing the impact from the subsea blowout in early 2010 and the ongoing global economic crisis.
Tough economic times probably will slow Phase 2 of LA 1 project ....... 72 This past October, the LA 1 Coalition lost their bid for a $100-million federal grant, but it continues to seek government aid – this time, at the state level.
A matter of survival: The GEST story.................................... 74 Chief among the civil activist groups in Louisiana is the Gulf Economic Survival Team (GEST), and its concerns apparently are getting some positive response.
Lafourche regional businesses seek new avenues .............................. 75 Most of the businesses serving the Gulf of Mexico offshore drilling and production industry, though increasingly alarmed by the growing downturn in their deepwater drilling market share, aren’t sitting around in sack cloth and ashes.
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 countries $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 www.omeda.com/os.
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I have someone retiring after 33 years on the job. I have someone taking 33 years of experience with him. And now someone with just 3 years has to do that job.
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The Emerson logo is a trademark and a service mark of Emerson Electric Co. © 2011 Emerson Electric Co.
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International Edition Volume 71, Number 3 March 2011
COVER: The Geco Searcher operates as a source vessel during a survey in the East Breaks and Garden Banks areas of the Gulf of Mexico. It is the first dual coil shooting survey to be carried out, delivering full-azimuth, longoffset multiclient data. Photo courtesy WesternGeco.
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BERGEN NCE SUBSEA Bergen’s subsea expertise reaches out to Brazil ...................................................... 78 The local industry association NCE Subsea is seeking to forge new links with Brazil, one of the most promising markets for the Bergen area’s thriving technology and services sectors.
Making space for subsea demand............................................................................. 81 With demands for maintenance and modifications increasing offshore Norway and globally, Aker Solutions’ service facility at Coast Center Base in Ågotnes, near Bergen, is well placed to capture new opportunities for equipment refurbishment.
qIPMFFOMBSHFNFOUXIJMFESJMMJOH VTJOH SPUBSZTUFFSBCMFTZTUFNT qVOEFSSFBNJOHDPODFOUSJDCPSFIPMFTCFMPX DBTJOHXJUIUJHIUSFTUSJDUJPOT qFYQBOEJOHFYJTUJOHQJMPUIPMFT
Cargotec expanding solutions for subsea load and anchor handling ...................... 84 Cargotec, a world leader in offshore and onshore cargo and load-handling, has an extensive portfolio under the MacGregor brand.
Framo Engineering: A major contributor to subsea technology development in Bergen .......................................................... 85 Established in 1983, Framo is a pioneer in Bergen’s earliest search for companies engaged in core subsea technologies.
Bennex supplies subsea technology to the oil and gas industry ............................. 86 Bennex has been developing and supplying subsea technology and products for more than 30 years, growing into a global presence in the subsea oil and gas industry.
Norwegian Centers of Expertise................................................................................. 87 The Norwegian Centers of Expertise (NCE) program aims to enhance sustainable innovation and internationalization in the most dynamic and growth-oriented Norwegian clusters.
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D E P A R T M E N T S
Online .................................................... 6 Comment ............................................... 8 Data ..................................................... 10 Global E&P .......................................... 12 Offshore Europe .................................. 16 Gulf of Mexico ..................................... 18 Subsea Systems ................................. 20
Vessels, Rigs, & Surface Systems ...... 22 Drilling & Production .......................... 24 Geosciences ........................................ 26 Offshore Automation Solutions .......... 28 Business Briefs ................................. 102 Advertisers’ Index............................. 107 Beyond the Horizon .......................... 108
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PennWell 1455 West Loop South, Suite 400, Houston, TX 77027 U.S.A. Tel: (01) 713 621-9720 • Fax: (01) 713 963-6296
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CONTRIBUTING EDITORS F. Jay Schempf (Houston) Nick Terdre (Norway) Peter Howard Wertheim (Brazil) Gurdip Singh (Singapore)
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CORPORATE HEADQUARTERS PennWell; 1421 S. Sheridan Rd., Tulsa, OK 74112 Member All Rights reserved Offshore ISSN-0030-0608 Printed in the U.S.A. GST No. 126813153 CHAIRMAN: Frank T. Lauinger PRESIDENT/CHIEF EXECUTIVE OFFICER: Robert F. Biolchini CHIEF FINANCIAL OFFICER: Mark C. Wilmoth
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Offshore-mag.com Field development supplements ➤ Shell Perdido Custom Publication Shell Perdido covers the record breaking development of this Gulf of Mexico project from start to finish. Additional coverage includes technology profiles from the service and supply companies that helped make this field a success. http://www.offshore-mag.com/index/shell-perdido.html
Upcoming webcasts ➤ Reviewing offshore safety systems and automation integrity Rajan Batra, Electrical, Instrumentation & Control Lead for Major Capital Projects, Chevron International Exploration & Production division, will discusss the latest developments and trends in offshore safety systems and automation integrity. Other speakers to be announced soon.
On demand ➤ Meeting the Challenges of Arctic Development February 24, 2011: Arctic oil and gas resources represent the next big chapter in offshore development. Yet, the development of these resources remains challenging in terms of engineering, construction and installation, and related logistics. Dr. Shawn Kenny, the Wood Group Chair in Arctic and Harsh Environments Engineering and Associate Professor at Memorial University in St. John’s, Newfoundland and Labrador, presents an overview of practical engineering solutions that will allow oil and gas operators to safely and efficiently work in Arctic offshore environments. He is joined by G. Abdel Ghoneim, PE, PhD, Det Norske Veritas, who provides an update on industry activities for thesee regions, including the latest on ship classification; fixed and floating drilling/pro-duction unit classification; third-party verification; environmental assessments/ risk analysis; and ice/ship interaction. The third speaker is Joe Gagliardi, Arctic Solutions and Technology Director, ION Geophysical Corp., and he discusses the challenges of acquiring and processing seismic data in Arctic environments.
➤ Building an Emergency Spill Response System Following recent events in the Gulf of Mexico, offshore operators and service and supply companies are reformulating their emergency response plans and protocols to better prepare for possible spills and accidents. A select panel of industry experts will discuss the steps industry is taking now to improve response; best practices for cleaning up a spill or leak; relevant government regulations and policies; and what happens (scientifically) to the oil in the event that it is accidentally released into a marine environment. The panel is comprised by experts from industry, academia, and the consulting sectors, and includes Edward B. Overton, Ph.D., Professor Emeritus of Environmental Sciences, Louisiana State University; Lucian (Lou) Pugliaresi, President, Energy Policy Research Foundation (EPRINC); and David Salt, Operations Director, Oil Spill Response.
➤ Offshore’s Top 5 projects of 2010 The editors of Offshore have made their choices for winners of the Five Star Award – the top five offshore field development projects for 2010 – and the winners were announced in a webcast on Dec. 7, and in the December issue. http://www.offshore-mag.com/index/webcasts/webcast-dis_______________________________________ _____________________________________________ play/6454730782/webcasts/webcasts-offshore/live-events/offshoretop_5_projects0.html ______________
6 Offshore March 2011 • www.offshore-mag.com
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we are the people of Baker Hughes. and we’re ready for anything.
Tauseef Salma, Chief Engineer
Whatever your challenge, count on Baker Hughes to build dependable
We deliver what’s promised and stand behind
solutions tailored to your specific needs.
our performance. To see how Tauseef and
From reliable equipment to disciplined personnel, our ongoing
the Baker Hughes team integrate reliability
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throughout our culture, starting with the
performance gives you the capability you need to manage your risks
technology design process, please visit us
and make the most of your assets.
at www.bakerhughes.com/tauseef
www.bakerhughes.com ©2011 Baker Hughes Incorporated. All Rights Reserved. 31650
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COMMENT
David Paganie • Houston
Caspian production to ramp up Our Tradition Runs Deep In-depth coverage of offshore oil and gas industry for more than 56 years Drilling and Completion Production Subsea Construction and Installation Transportation and Logistics Geology and Geophysics
This month we take a look at E&P operations in the largest enclosed body of water on Earth, the Caspian Sea. Capex growth by 2016 is expected to hit $4 billion a year in efforts to tap more than 50 Bboe in reserves across the area. The big projects, ACG, Shah Deniz, and Kashagan lead the way for this hub of demand. Europe to the west and China to the east will generate demand for more production from this relatively lightly explored region. On the downside, the northern parts of the Caspian can be nasty in the winter, with temperatures sinking to less than -30º C (-22º F). Low salt content in the water and relatively shallow depths lead the northern Caspian to freeze over almost half the year, so arctic innovation is a must for operations here. Owing to the cost of operations in such a difficult environment, NOCs from the area such as SOCAR from Azerbaijan, Turkmenneft of Turkmenistan, and KazMunaiGaz of Kazakhstan are the largest spenders, but IOCs are present in the area as parts of consortiums. One unknown centers on whether the Caspian remains a sea or is reclassified as a lake. If it remains a sea, it likely will divide into national sectors. If it is defined legally as a lake, each surrounding country might get an equal share. Starting on page 30, Chris Boulter, Peter Kiernan, and Roger Knight of Infield Systems Ltd. go into the past, present, and future of the Caspian Sea. A specific look at events circumstances and events offshore Turkmenistan for Dragon Oil shows major production plans now that the Soviet-era platforms and wells are up to modern standards. Emphasis is on the Cheleken Contract Area where Dragon expects to build on progress made in 2010. New pipelines and offshore processing plans will boost the potential throughput, and when coupled with plans to add new platforms and drill more wells make the Cheleken operation one of big promise. See what Offshore’s Editor-Europe Jeremy Beckman has to say about Dragon starting on page 34.
Subsea processing and boosting One of two special inclusions in this month’s Offshore is the new 2011 Worldwide Survey of Subsea Processing: Separation, Compression, and Pumping Systems poster. There are myriad improvements, additions, upgrades, and updates from the prior year’s version. In addition, K Janardhanan and Mac McKee of INTECSEA bring you an up-todate look at this rapidly growing technology and explain what is involved in the various stages of subsea production and why operators implement the technology. They also point out that the approaches to use of subsea boosting and processing is evolving and do vary by operator, and that R&D on the topic has shifted to projectspecific work.
Seismic vessel survey This is the other of the two special topics this month. Unlike the last couple of years, there is some good news regarding the vessel count. It is up to 163 from 2010’s 156. There also are newbuilds coming onto the market to meet the requirements of advances in acquisition, data handling, and processing. This exhaustive survey begins on page 36 with an overview by Gene Kliewer, Offshore’s technology editor for subsea and seismic. The pages that immediately follow that list the vessels, capacities, areas of operation, and more for each vessel reported.
DOT call for abstracts is live vation ea inno
subs seeks
The advisory board of DOT International is accepting abstracts for this year’s event scheduled Oct. 11-13 at the Hilton Riverside, New Orleans. I invite you to share your knowledge, ideas, and lessons learned with the international deepwater community. The abstract submission form is available at www.deepoffshoretechnology.com. The submission deadline is April 5.
Our depth is a tradition you can count on.
www.offshore-mag.com
To respond to articles in Offshore, or to offer articles for publication, contact the editor by email (
[email protected]).
8 Offshore March 2011 • www.offshore-mag.com
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___________
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G L O B A L D ATA Worldwide day rates
Worldwide offshore rig count & utilization rate
Year/Month
Feb 2009 – Jan 2011 Total fleet
Contracted
Working
850
100%
750
90%
650
80%
550
70%
450
60%
350 Feb 09 May 09 Aug 09 Nov 09 Feb 10 May 10 Aug 10 Nov 10
50%
Fleet utilization rate
No. of rigs
Contracted fleet utilization
Copyright © 2011 ODS-Petrodata Inc.
GoM drilling permits issued 100 90
Drilling permits
80 70 60 50 40 30 20
21
18
15
14
July
Aug.
Sept.
13
15
17
Nov.
Dec.
Jan.
10 0
Oct.
Minimum
Average
Maximum
$125,000 $125,000 $125,000 $125,000 $125,000 $125,000 $125,000 $125,000 $125,000 $125,000 $125,000 $155,000
$388,416 $389,265 $393,652 $386,397 $391,011 $398,169 $398,037 $403,350 $412,682 $404,371 $409,976 $431,144
$630,000 $592,500 $592,500 $592,500 $592,500 $592,500 $592,500 $650,000 $650,000 $650,000 $650,000 $650,000
$28,000 $28,000 $28,000 $28,000 $27,000 $25,000 $6,500 $10,000 $10,000 $10,000 $30,000 $32,000
$127,233 $123,335 $118,905 $116,205 $115,315 $115,693 $115,249 $114,822 $112,539 $111,092 $110,332 $109,944
$398,000 $398,000 $398,000 $398,000 $398,000 $398,000 $335,000 $335,000 $335,000 $335,000 $335,000 $335,000
$83,000 $83,000 $83,000 $83,000 $47,000 $47,000 $47,000 $47,000 $47,000 $47,000 $47,000 $47,000
$363,623 $365,389 $362,077 $360,359 $357,489 $351,888 $355,320 $355,826 $357,302 $358,600 $360,694 $361,656
$649,000 $649,000 $649,000 $649,000 $649,000 $649,000 $649,000 $649,000 $649,000 $649,000 $649,000 $649,000
Drillship 2010 Feb 2010 Mar 2010 April 2010 May 2010 June 2010 July 2010 Aug 2010 Sept 2010 Oct 2010 Nov 2010 Dec 2011 Jan Jackup 2010 Feb 2010 Mar 2010 April 2010 May 2010 June 2010 July 2010 Aug 2010 Sept 2010 Oct 2010 Nov 2010 Dec 2011 Jan Semi 2010 Feb 2010 Mar 2010 April 2010 May 2010 June 2010 July 2010 Aug 2010 Sept 2010 Oct 2010 Nov 2010 Dec 2011 Jan Source: Rigzone.com
Source: BOEMRE
Worldwide rig utilization
Caspian Sea rig utilization
,
-
+ &
%
! "# $ %
! "# $ %
'( #) $ *
Source: _____ Rigzone.com
Source: _____ Rigzone.com
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10 Offshore March 2011 • www.offshore-mag.com
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Jeremy Beckman • London
GLOBAL E&P
M&A activity set to stay strong Global upstream asset deals reached a new peak last year of $117 billion, according to analysts Wood Mackenzie. High-profile sellers included BP, ConocoPhillips, Devon, and Cheseapeake, which collectively sold $45 billion of assets. Wood Mackenzie foresees further wheeling and dealing this year, notably for LNG, unconventional gas, and deepwater resources. However, the impact of last year’s Macondo incident on mergers and acquisition activity in the Gulf of Mexico has yet to be seen, with only Plains E&P to date announcing major restructuring in this sector.
North America Suncor Energy expects first oil to flow from the West White Rose development offshore Newfoundland by the second quarter of this year. Drilling results from Stage 1, combined with production and reservoir evaluation, should allow the partners to define the full field development scope. In the same region, the Hibernia South Extension project should come onstream this spring, Suncor adds, while submission of the approved development plan for the Hebron field is imminent. ••• Cairn Energy plans to drill up to four exploration wells this year offshore Greenland, having secured two deepwater rigs. The company is assessing 10-12 potential locations in a variety of geological settings, and will select its targets in May. Last year the company drilled its first three wells in the Disko Bay area, one of which – Alpha1S1 – could be re-entered at some point. It also was awarded the Ingoaq, Napariaq, and Pitu blocks under the Baffin Bay bid round, and more recently was confirmed as operator of the Atammik and Lady Franklin blocks.
Afren was hoping to deliver first oil last month from its shallow water Ebok field off Nigeria. Facilities include two wellhead platforms and a mobile offshore production unit connected to a floating storage and offloading vessel. Ebok is being developed in two concurrent phases, which will deliver over 35,000 b/d combined. The nearby Okwok field could be tied in following successful results from a recent appraisal well. ••• Noble Energy has contracted McDermott International in Morgan City, Louisiana, for offshore facilities for the Alen gas/condensate project offshore Equatorial Guinea. The yard will fabricate a 15,000-ton (13,607-metric ton) central production platform, including living quarters, and a 2,000-ton (1,814-metric ton) wellhead jacket and pile. Alen is off the east coast of Bioko Island in block O, in 240 ft (73 m) of water. ••• Congo
Atlantic Ocean
Pointe-Noire Moho Nord Marine 4 & 3
Mobim
Moho Nord Marine 1 & 2
Bilondo
BILDM-2 BILDM-3 NKOSSA
AFRICA
South America Petrobras has discovered further oil in its BM-S-9 block in Brazil’s Santos basin. The Carioca North-East well intersected a light-oil accumulation in a 200-m (656-ft) reservoir section. The location is 275 km (171 mi) off Sao Paulo state, in a water depth of 2,151 m (7,057 ft). Block BM-S-9 comprises the Guara and Carioca appraisal areas. Brazil’s other leading indigenous E&P company, OGX, also struck promise in the Campos basin. Its latest well in block BM-C-41 OGX on the Illimani prospect encountered a 52-m (171-ft) hydrocarbon column in carbonate reservoirs. General Executive Officer Paulo Mendonca said the new find significantly extends the carbonate platform in the Albian section in the southern part of the basin. ••• Falkland Oil and Gas (FOGL) has commissioned a site survey over its southern licenses off the Falkland Islands, ahead of a planned drilling program. The survey was due to take in various prospects in Tertiary channel and mid-Cretaceous fan plays. The survey vessel could extend its stay to acquire new 2D seismic to assist selection of drilling locations. FOGL has also been scouting for a deepwater rig.
Moho-Bilondo Area shown Map shows location of latest discoveries in Moho-Bilondo license offshore Congo.
Total has discovered further reserves in its Moho-Bilondo license off the Republic of Congo. The Bilondo Marine 2 and 3 wells were drilled in the central part of the license in 800 m (2,624 ft) water depth, around 70 km (43 mi) offshore. Both wells reached a TD of 1,800 m (5,905 ft) in the Tertiary series, encountering 77 m and 44 m (252/144 ft) gross reservoir sections, respectively. The results confirm the potential for a second development hub. Moho-Bilondo in the south of the permit area currently produces 90,000 b/d of oil from 13 subsea wells tied to an FPU. •••
Tullow Oil says planning is already under way for Phase 1a of the Jubilee development. Jubilee came onstream in November. Phase 1a, designed to maintain production rates and to extract further reserves, will comprise five to eight infill wells. Another project could follow on the Mahogany-East (ex-Southeast Jubilee) discovery, for which operator Kosmos Energy has issued a Declaration of Commerciality. The extensive, but generally thinner Mahogany-East reservoirs will require either a tieback to Jubilee’s subsea infrastructure or another standalone development.
Angola has conditionally awarded new deepwater blocks under its Pre-Salt Licensing Bid Round in the Kwanza basin. Successful bidders must negotiate definitive agreements with state company Sonangol concerning planned operations before the awards can be confirmed. Among the applicants, Cobalt Energy was offered a 40% operating interest in block 20, 75 mi (120 km) west of Luanda. ENI was nominated operator of block 35, 93 mi (150 km) from the capital, with work commitments including two wells and 3D seismic surveys. Statoil was granted operatorships of blocks 38 and 39, and interests in blocks 22, 25, and 40. Tim Dodson, the company’s executive VP for Exploration, said there were analogies in this frontier play with pre-salt Brazil.
•••
•••
West Africa
12 Offshore March 2011 • www.offshore-mag.com
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Laying Pipe Never Looked So Good. The Global 1200 is Now Available. Versatile in Shallow or Deep Water. DP2 or Conventional Mooring
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GLOBAL E&P
Development of the Kudu gas field off northern Namibia could finally go ahead, after operator Tullow Oil and the Ministry of Mines ratified a new Petroleum Agreement. A revised 25-year production license should be approved shortly. Tullow has completed a concept selection study, and is in discussions with local utility NamPower on how to optimize design of the proposed offshore facilities and an onshore power station. Detailed design of the offshore development should start this spring.
Mediterranean Sea Spain’s government has awarded Cairn Group two hydrocarbon exploration licenses off the country’s east coast, comprising five contiguous blocks in the Gulf of Valencia. Water depths range from 50 m (164 ft) to nearly 1,000 m (3,281 ft). ••• The consortium behind the proposed Trans-Adriatic Pipeline (TAP) is watching developments in the Caspian Sea. Next month, SOCAR and its partners are expected to decide which companies can procure gas from the Shah Deniz II development offshore Azerbaijan. This will lead to a decision on which transportation solution is adopted
to take Caspian gas to countries in southern Europe. The TAP trio of Statoil, E.ON Ruhrgas, and EGL claim that their proposed line, with its 20 bcm/yr (706 bcf/yr) capacity, offers the shortest and most cost-effective route for Shah Deniz exports. ••• Tunisia has renewed the Kerkouane exploration license for three years into February 2014, with options for a further three-year extension. Work commitments, according to operator ADX Energy, include a well test on the Lambouka discovery, and relinquishment of part of the license area, which now stands at 3,080 sq km (1,189 sq mi). ••• Just prior to the recent unrest in Egypt, RWE Dea discovered gas in the offshore North El Amriya concession, 40 km (25 mi) north of Alexandria. The well encountered gas in a Lower Pliocene sand in the Kafr El Sheik formation, and following a side track, a conventional gas-filled channel overlain by an unconventional reservoir. Here a successful drillstem test flowed up to 14 MMcf/d of gas. RWE Dea described this as a promising new play, which could lead to an expansion of activities, although shortly afterwards the
company felt obliged to evacuate its international employees to Germany for reasons of security.
Russia Rosneft and ExxonMobil have agreed to form a joint operating E&P company in the Black Sea, to focus on the deepwater Tuapse Trough area off Russia’s Krasnodar region. The partnership will extend to deepwater technology R&D, crude oil sales to local markets, and development of regional transportation infrastructure. ••• Exxon Neftegas is claiming further extended reach drilling records offshore Sakhalin Island. The Odoptu OP-11 well on the Odoptu field, part of the Sakhalin-I project, achieved a total measured depth of 40,502 ft (12,345 m), and an unprecedented horizontal reach of 37,648 ft (11,475 m). Drilling was performed from an onshore location under the sea, using the company’s Fast Drill Process and Integrated Hole Quality technology.
Middle East Maritime Industrial Services (MIS) is providing engineering support for RAK Petro-
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GLOBAL E&P leum’s Saleh field redevelopment offshore Oman. Production from the field tailed off rapidly after its initial development in the mid-1980s. MIS in consultation with RAK is investigating requirements for rehabilitating Saleh’s four platforms. ••• Iran and Syria have determined a route for a new 2,000-km (1,242-mi) trunkline that eventually could export gas to Europe. The route would traverse Iraq, Syria, and Lebanon before reaching the Mediterranean Sea. National Iranian Gas Co. says the 110 MMcf/d, 56-in. (142-cm) diameter pipeline would cost $2-2.5 billion to construct.
Asia/Pacific Two oil field development projects should move forward in the Beibu Gulf in the South China Sea, following internal approvals from CNOOC. The WZ 6-12 and WZ 12-8 fields have combined reserves estimated at 24 MMbbl. According to partner Roc Oil, a new CNOOC-operated integrated processing platform will host production from two unmanned installations on the fields, with 11 development wells due to be drilled during 2012-13. First oil could flow before end-2012. •••
The Philippine Department of Energy has approved Shell Philippines Exploration’s 45% farm-in to the offshore SC 54B permit. Operator Nido Petroleum says the semisub Atwood Falcon, which worked for Shell last year off Malaysia, will mobilize to SC 54B by end-May to drill the Gindara-1 prospect. ••• Petronas and MISC Berhad have contracted Technip and DSME for front-end engineering design of a floating liquefied natural gas unit for the Malaysian sector. This would have capacity to process 1 MM metric tons/ yr (1.1 MM tons/yr). Also in Malaysia, Mustang is forming a joint venture in Kuala Lumpur with Sime Darby’s Energy & Utilities division. Mustang Sime Darby will provide project management, design, and procurement support for oil and gas projects in the Southeast Asia.
Australasia PTTEP has awarded SapuraAcergy a $160million contract for the Montara development project in the southern Timor Sea. The work scope includes removal and disposal of the existing topsides and transport/installation of replacement topsides, in a water depth of 80 m (262 ft), using the construction vessel Sapura 3000. Sapura-Energy will also install
new pipelines, subsea production facilities, and FPSO mooring systems. ••• Capital expenditure for the Esso Australia-operated Kipper and Turrum projects in the Gippsland basin offshore Victoria has risen to $2.25 billion, according to partner BHP Billiton. One reason for the increase is the need for measures to mitigate mercury, which was discovered in the reservoir during development drilling. Further design and fabrication requirements have delayed installation and offshore hook-up, with facilities now set to be completed in 2012. Kipper and Turrum hold combined recoverable reserves estimated at 1.62 bcf of gas and 140 MMbbl of oil and gas liquids. ••• New Zealand Oil & Gas (NZOG) is looking to drill the Kaupokonui oil prospect this year in the PEP 51311 permit in New Zealand’s offshore Taranaki basin, assuming a suitable rig becomes available. Kaupokonui has unrisked resources of over 200 MMbbl. In adjoining permit PML 38146, containing the producing Kupe Central field area, studies are under way that could lead to wells being drilled on one or more prospects, probably to coincide with second-stage development drilling in 2012/13.
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OFFSHORE EUROPE
Norway rewards active foreign players Norway has offered 50 new production licenses to 39 companies under the country’s 2010 Awards in Pre-Defined Areas licensing round. The APA scheme focuses mainly on acreage in mature basins, but there were some exceptions this time round. Norwegian independent Rocksource, for instance, gained operatorship of three stratigraphic concessions in the Stord basin in the central Norwegian North Sea, and of a license northeast of Norske Shell’s Draugen field in the Norwegian Sea. As always, Statoil, the sector’s dominant player, was the biggest winner with interests in 11 permits, eight as operator. Among the other Norwegian companies, Det norske oljeselskap picked up stakes in eight licenses, three as operator. Six of these concessions are in the North Sea and include an expansion of the Dovregubben exploration area. Spring Energy won shares in five licenses, including PL591 covering blocks 6507/8, 9, and 11 in the Norwegian Sea, in an area where numerous Mid-Jurassic Fangst group play prospects have been mapped. Of the more active foreign-owned contingent, Wintershall secured 10 production licenses, six as operator. Much of the acreage is close to the company’s recent Beta, Grosbeak, and Maria discoveries. And Lundin Petroleum gained five operatorships in the North Sea, two in the Greater Luno Area, where the company expects to issue a development plan later this year. As for the majors, the sole new operatorship went to Total in a remote area of the Norwegian Sea, southwest of Norske Shell’s Linnorm gas discovery.
Gullfaks C to host latest Statoil tieback Statoil has submitted a development plan for the Visund South project in the North Sea, comprising the Pan and Pandora oil and gas discoveries, 10 km (6.2 mi) from both the Gullfaks C and Visund A platforms in 290 m (951 ft) water depth. The combined reserves are 67 MMboe. Due to concerns over a potential pressure drop in the reservoirs, Statoil is keen to push development forward. The $970-million scheme involves installation of a four-slot subsea template, with three wells drilled initially, all tied back to Gullfaks C for processing. Assuming approval, production could start in summer 2012. Recently, Statoil held follow-up talks with Petroleum Safety Authority Norway to present its findings on a well control incident last May at Gullfaks C. Pressure build-up in the well, caused by leakage in a casing almost resulted in a blow-out. In response, Statoil decided to systematically survey all the wells throughout the main Gullfaks field.
Jeremy Beckman • London
Subsequent inspections during the fall suggested a pressure build-up in certain areas, chiefly in wells used for pressure support. This led to shut-in of 20 wells, mainly water injectors, followed by a further 30 well closures to maintain the pressure balance in the field. Statoil now is working to bring as many of these wells back on line as possible. Analysis indicates a connection between pressure build-up in the Shetland and Lista rock formations and the positions of the wells presenting most risk. However, Statoil believes that the overlying sands in the Hordaland formation hold sufficient capacity to compensate for any weakness below should a fracture occur in the Shetland formation. The company says it has identified no leaks from the reservoir as a result of its operations on Gullfaks, although there are leaks as a result of natural pockmarks on the field.
UK revival set to continue Capital investment on the UK shelf could soar to $12.3 billion this year, up from $7 billion in 2010, according to analysts Wood Mackenzie. This, the consultants add, should instigate a temporary halt to the long-term production decline across the sector. And higher oil prices should, in theory, lift exploration and appraisal drilling activity. Last year, analysts say, there was an increase in the number of UK field development submissions, and 37 exploration wells were spudded – up 28% on the figure for 2009, although some way short of the 56 wells spud during 2008. However, last year’s wells only yielded 233 MMboe of new reserves, down 67 MMboe on the previous total. Another study, this one by Hannon Westwood, has identified 90 economic discoveries across the UK shelf that could be brought onstream within the next five years, delivering 2.6 Bboe in new production and $44 billion in petroleum taxes to the UK treasury. But under current market conditions the required capex of around $33 billion could be difficult to raise, unless the government intervened by introducing new tax allowances.
Storage scheme enters exploration phase Results from a first-phase concept study suggest a planned gas storage facility off eastern Ireland is both economically and technically feasible. UK engineering group AMEC performed the study for the Ulysses scheme in the Kish Bank basin offshore Dublin for Providence Resources subsidiary EIRGAS. The scope includes capacity modelling, infrastructural integration, and gas sourcing for the proposed offshore cavern natural gas storage facility. Providence has examined various scenarios with a range of capacity, off-take export rates, and capital expenditure. The company now intends to acquire technical data relating to subsurface geology, which would involve drilling a well into the nearby Dalkey Island exploration prospect. If Ulysses goes forward, it could provide around 50% of Ireland’s gas storage capacity, the company claims.
Dual-oil success for DONG
Visund South diagram.
DONG Energy is driving current exploration activity in the Danish North Sea. In December the company announced a new oil discovery, Solsort, in pre-chalk sandstones. This was followed in January by Sara, which flowed oil from Palaeocene-age sandstone in the westernmost reaches of the Danish sector. Recently, DONG applied for a new license, one next to its existing 4/95 permit, over an area where there has been little exploration in the past few years. Denmark’s Minister for Climate and Energy is considering this application, but has awarded a new concession, license 1/11, to Norwegian company Noreco covering an area directly west of Noreco’s 2/05 license. Noreco plans to drill the Luna prospect on the new acreage later this year.
16 Offshore March 2011 • www.offshore-mag.com
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𰁃𰁜𰁘𰁛𰁜𰁩𰁪𰀗𰁠𰁥𰀗𰁫𰁟𰁜𰀗𰁤𰁘𰁥𰁬𰁝𰁘𰁚𰁫𰁬𰁩𰁜𰀗𰁦𰁝𰀗𰁚𰁩𰁠𰁫𰁠𰁚𰁘𰁣𰀗𰁚𰁦𰁤𰁧𰁦𰁥𰁜𰁥𰁫𰁪𰀗𰁝𰁦𰁩𰀗𰁪𰁬𰁚𰁚𰁜𰁪𰁪𰁝𰁬𰁣𰀗𰁎𰁜𰁣𰁣𰁙𰁦𰁩𰁜𰀗𰀺𰁦𰁥𰁪𰁫𰁩𰁬𰁚𰁫𰁠𰁦𰁥𰀥
Downhole Products A Varel International Energy Services Company
𰀻𰀿𰁇𰀗𰀺𰁜𰁥𰁫𰁩𰁘𰁣𰁠𰁱𰁘𰁫𰁠𰁦𰁥𰀗𰁋𰁦𰁦𰁣𰁪𰀱𰀗𰀗 𰀻𰁜𰁪𰁠𰁞𰁥𰁜𰁛𰀗𰁫𰁦𰀗𰁢𰁜𰁜𰁧𰀗𰁰𰁦𰁬𰁩𰀗𰁚𰁘𰁪𰁠𰁥𰁞𰀗𰁚𰁜𰁥𰁫𰁩𰁘𰁣𰁠𰁱𰁜𰁛𰀣𰀗𰀗 𰁧𰁩𰁦𰁭𰁠𰁛𰁠𰁥𰁞𰀗𰁫𰁟𰁜𰀗𰁬𰁣𰁫𰁠𰁤𰁘𰁫𰁜𰀗𰁚𰁜𰁤𰁜𰁥𰁫𰀗𰁡𰁦𰁙
𰀼𰁯𰁫𰁜𰁥𰁪𰁠𰁭𰁜𰁣𰁰𰀗𰃔𰁜𰁣𰁛𰀗𰁧𰁩𰁦𰁭𰁜𰁥𰀗𰁘𰁥𰁛𰀗𰁬𰁪𰁜𰁛𰀗𰁠𰁥𰀗𰁪𰁦𰁤𰁜𰀗𰁦𰁝𰀗𰁫𰁟𰁜𰀗𰁮𰁦𰁩𰁣𰁛𰃋𰁪𰀗𰁤𰁦𰁪𰁫𰀗𰁛𰁜𰁤𰁘𰁥𰁛𰁠𰁥𰁞𰀗𰁮𰁜𰁣𰁣𰁪𰀣𰀗𰁫𰁟𰁜𰀗𰀗 𰀻𰁦𰁮𰁥𰁟𰁦𰁣𰁜𰀗𰁇𰁩𰁦𰁛𰁬𰁚𰁫𰁪𰀗𰁊𰁧𰁠𰁩𰀤𰁦𰀤𰁣𰁠𰁱𰁜𰁩𰂠𰀗𰁚𰁜𰁥𰁫𰁩𰁘𰁣𰁠𰁱𰁜𰁩𰀗𰁠𰁪𰀗𰁪𰁧𰁜𰁚𰁠𰃔𰁚𰁘𰁣𰁣𰁰𰀗𰁛𰁜𰁪𰁠𰁞𰁥𰁜𰁛𰀗𰁫𰁦𰀗𰁚𰁩𰁜𰁘𰁫𰁜𰀗𰁫𰁬𰁩𰁙𰁬𰁣𰁜𰁥𰁚𰁜𰀗𰀗 𰁘𰁥𰁛𰀗𰁤𰁠𰁥𰁠𰁤𰁠𰁱𰁜𰀗𰁣𰁘𰁤𰁠𰁥𰁘𰁩𰀗𰃕𰁦𰁮𰀣𰀗𰁧𰁩𰁦𰁭𰁠𰁛𰁠𰁥𰁞𰀗𰁜𰁥𰁟𰁘𰁥𰁚𰁜𰁛𰀗𰁮𰁜𰁣𰁣𰁙𰁦𰁩𰁜𰀗𰁚𰁣𰁜𰁘𰁥𰀗𰁬𰁧𰀗𰁘𰁥𰁛𰀗𰁚𰁜𰁤𰁜𰁥𰁫𰀗𰁧𰁣𰁘𰁚𰁜𰁤𰁜𰁥𰁫𰀣𰀗𰀗 𰁘𰁪𰀗𰁮𰁜𰁣𰁣𰀗𰁘𰁪𰀗𰁘𰁥𰀗𰁦𰁧𰁫𰁠𰁤𰁬𰁤𰀗𰁚𰁜𰁤𰁜𰁥𰁫𰀗𰁙𰁦𰁥𰁛𰀣𰀗𰁮𰁟𰁠𰁚𰁟𰀗𰁟𰁜𰁣𰁧𰁪𰀗𰁫𰁦𰀗𰁜𰁥𰁪𰁬𰁩𰁜𰀗𰁮𰁜𰁣𰁣𰀗𰁪𰁘𰁝𰁜𰁫𰁰𰀗𰁘𰁥𰁛𰀗𰁠𰁥𰁫𰁜𰁞𰁩𰁠𰁫𰁰𰀥 𰁋𰁟𰁜𰀗𰁊𰁧𰁠𰁩𰀤𰁦𰀤𰁣𰁠𰁱𰁜𰁩𰀗𰁠𰁪𰀗𰁤𰁘𰁥𰁬𰁝𰁘𰁚𰁫𰁬𰁩𰁜𰁛𰀗𰁮𰁠𰁫𰁟𰀗𰁘𰀗𰁧𰁘𰁫𰁜𰁥𰁫𰁜𰁛𰀗𰁱𰁠𰁥𰁚𰀗𰁘𰁣𰁣𰁦𰁰𰀗𰁤𰁘𰁫𰁜𰁩𰁠𰁘𰁣𰀗𰁩𰁜𰁚𰁦𰁤𰁤𰁜𰁥𰁛𰁜𰁛𰀗𰁝𰁦𰁩𰀗𰁪𰁘𰁝𰁜𰀗𰁬𰁪𰁜𰀗 𰁠𰁥𰀗𰁟𰁘𰁱𰁘𰁩𰁛𰁦𰁬𰁪𰀗𰁜𰁥𰁭𰁠𰁩𰁦𰁥𰁤𰁜𰁥𰁫𰁪𰀥𰀗𰁋𰁟𰁠𰁪𰀗𰁧𰁩𰁦𰁭𰁠𰁛𰁜𰁪𰀗𰁫𰁟𰁜𰀗𰁣𰁦𰁮𰁜𰁪𰁫𰀗𰁚𰁦𰁜𰁝𰃔𰁚𰁠𰁜𰁥𰁫𰀗𰁦𰁝𰀗𰁝𰁩𰁠𰁚𰁫𰁠𰁦𰁥𰀗𰁮𰁟𰁜𰁥𰀗𰁚𰁦𰁤𰁧𰁘𰁩𰁜𰁛𰀗𰁫𰁦𰀗 𰁘𰁣𰁫𰁜𰁩𰁥𰁘𰁫𰁠𰁭𰁜𰀗𰁪𰁫𰁜𰁜𰁣𰀗𰁘𰁥𰁛𰀗𰁘𰁣𰁬𰁤𰁠𰁥𰁬𰁤𰀗𰁧𰁩𰁦𰁛𰁬𰁚𰁫𰁪𰀣𰀗𰁩𰁜𰁪𰁬𰁣𰁫𰁠𰁥𰁞𰀗𰁠𰁥𰀗𰁘𰀗𰀪𰀧𰀤𰀫𰀧𰀜𰀗𰁩𰁜𰁛𰁬𰁚𰁫𰁠𰁦𰁥𰀗𰁠𰁥𰀗𰁫𰁦𰁩𰁨𰁬𰁜𰀗𰁘𰁥𰁛𰀗𰁛𰁩𰁘𰁞𰀣𰀗 𰁘𰁥𰁛𰀗𰁘𰁣𰁣𰁦𰁮𰁠𰁥𰁞𰀗𰁚𰁘𰁪𰁠𰁥𰁞𰁪𰀣𰀗𰁣𰁠𰁥𰁜𰁩𰁪𰀗𰁘𰁥𰁛𰀗𰁪𰁚𰁩𰁜𰁜𰁥𰁪𰀗𰁫𰁦𰀗𰁪𰁣𰁠𰁛𰁜𰀗𰁫𰁦𰀗𰁋𰀻𰀗𰁜𰁘𰁪𰁠𰁜𰁩𰀥 𰀻𰁦𰁮𰁥𰁟𰁦𰁣𰁜𰀗𰁇𰁩𰁦𰁛𰁬𰁚𰁫𰁪𰃋𰀗𰁬𰁥𰁠𰁨𰁬𰁜𰀗𰁤𰁘𰁥𰁬𰁝𰁘𰁚𰁫𰁬𰁩𰁠𰁥𰁞𰀗𰁫𰁜𰁚𰁟𰁥𰁠𰁨𰁬𰁜𰁪𰀗𰁞𰁠𰁭𰁜𰀗𰁫𰁟𰁜𰀗𰁊𰁧𰁠𰁩𰀤𰁦𰀤𰁣𰁠𰁱𰁜𰁩𰀗 𰁜𰁯𰁚𰁜𰁧𰁫𰁠𰁦𰁥𰁘𰁣𰀗𰁪𰁫𰁩𰁜𰁥𰁞𰁫𰁟𰀗𰁘𰁥𰁛𰀗𰁛𰁬𰁚𰁫𰁠𰁣𰁠𰁫𰁰𰀗𰁫𰁟𰁘𰁫𰀗𰁚𰁩𰁜𰁘𰁫𰁜𰁪𰀗𰁫𰁟𰁠𰁥𰁥𰁜𰁩𰀗𰁪𰁜𰁚𰁫𰁠𰁦𰁥𰁪𰀣𰀗𰁞𰁩𰁜𰁘𰁫𰁣𰁰𰀗 𰁠𰁤𰁧𰁩𰁦𰁭𰁠𰁥𰁞𰀗𰁫𰁟𰁜𰀗𰃕𰁦𰁮𰀤𰁙𰁰𰀗𰁘𰁩𰁜𰁘𰀥𰀗𰁋𰁟𰁠𰁪𰀗𰁩𰁜𰁛𰁬𰁚𰁜𰁪𰀗𰁩𰁜𰁪𰁠𰁪𰁫𰁘𰁥𰁚𰁜𰀣𰀗𰁠𰁥𰁚𰁩𰁜𰁘𰁪𰁜𰁪𰀗𰁤𰁬𰁛𰀗𰁪𰁮𰁜𰁜𰁧𰀗 𰁘𰁥𰁛𰀗𰁦𰁧𰁫𰁠𰁤𰁠𰁱𰁜𰁪𰀗𰁚𰁜𰁤𰁜𰁥𰁫𰀗𰁧𰁣𰁘𰁚𰁜𰁤𰁜𰁥𰁫𰀥𰀗
𰁌𰁂 𰀹𰁘𰁛𰁜𰁥𰁫𰁦𰁰𰀗𰁉𰁛 𰁇𰁦𰁩𰁫𰁣𰁜𰁫𰁟𰁜𰁥𰀣𰀗𰀸𰁙𰁜𰁩𰁛𰁜𰁜𰁥𰀣𰀗𰀸𰀹𰀨𰀩𰀗𰀫𰁐𰀸 𰁌𰁥𰁠𰁫𰁜𰁛𰀗𰁂𰁠𰁥𰁞𰁛𰁦𰁤 𰀢𰀫𰀫𰀗𰀨𰀩𰀩𰀫𰀗𰀮𰀯𰀫𰀫𰀨𰀨
𰁌𰀥𰁊𰀥 𰀮𰀨𰀪𰀗𰀹𰁩𰁘𰁛𰃔𰁜𰁣𰁛𰀗𰁉𰁦𰁘𰁛 𰀿𰁦𰁬𰁪𰁫𰁦𰁥𰀣𰀗𰁋𰁏𰀗𰀮𰀮𰀧𰀭𰀧 𰀢𰀨𰀗𰀩𰀯𰀨𰀗𰀩𰀮𰀩𰀗𰀭𰀧𰀧𰀧
𰁮𰁮𰁮𰀥𰀻𰁦𰁮𰁥𰁟𰁦𰁣𰁜𰀥𰁦𰁩𰁞𰀦𰁱𰁜𰁩𰁦𰁝𰁘𰁠𰁣
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𰀸𰁪𰁠𰁘 𰁌𰁥𰁠𰁫𰀗𰀹𰀤𰀨𰀧𰀤𰀨𰀩𰀣𰀗𰀨𰀧𰁫𰁟𰀗𰀽𰁣𰁦𰁦𰁩𰀣𰀗𰀹𰁣𰁦𰁚𰁢𰀗𰀹𰀣 𰁄𰁜𰁞𰁘𰁥𰀗𰀸𰁭𰁜𰁥𰁬𰁜𰀗𰁀𰁀 𰁅𰁦𰀥𰀨𰀩𰀗𰁁𰁘𰁣𰁘𰁥𰀗𰁐𰁘𰁧𰀗𰁂𰁮𰁘𰁥𰀗𰁊𰁜𰁥𰁞 𰀬𰀧𰀫𰀬𰀧𰀗𰁂𰁬𰁘𰁣𰁘𰀗𰁃𰁬𰁤𰁧𰁬𰁩 𰀢𰀭𰀧𰀟𰀪𰀠𰀗𰀩𰀨𰀭𰀨𰀗𰀧𰀯𰀩𰀧𰀗
𰁄𰁠𰁛𰁛𰁣𰁜𰀗𰀼𰁘𰁪𰁫 𰁋𰁜𰁚𰁟𰁥𰁦𰀗𰁇𰁘𰁩𰁢 𰁁𰁜𰁙𰁜𰁣𰀗𰀸𰁣𰁠 𰀻𰁬𰁙𰁘𰁠𰀣𰀗𰁌𰀸𰀼 𰀢𰀰𰀮𰀨𰀗𰀫𰀪𰀮𰀨𰀗𰀪𰀪𰀧𰀰
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Bruce Beaubouef • Houston
GULF OF MEXICO
Over-pressured wells a risk for deepwater operations, says report In a study designed to evaluate and address exploration and production (E&P) drilling risks associated with over-pressured formations, it was found that dramatically different magnitudes of overpressure existed across all 149 deepwater wells studied in the highly lucrative deepwater U.S. Gulf of Mexico Lower Tertiary Wilcox play. Understanding the variation and magnitude of overpressure is of critical importance, according to the authors of the study. They include officials from information and insight provider IHS and pressure consultants GeoPressure Technology Ltd. (GPT), an Ikon Science Co. The IHS/GPT Deep-Water Gulf of Mexico Lower Tertiary Wilcox Pressure Study sought to gain an understanding of overpressure in the deepwater Gulf in terms of its distribution and potential impacts on future exploration of the region’s petroleum system. The study examined 149 deepwater Gulf wells, which were extracted from the IHS Pressure Database, a global dataset of re-interpreted, quality controlled, subsurface formation pressure data. The study focuses on key wells in Alaminos Canyon, Keathley Canyon, Walker Ridge, Garden Banks, Green Canyon, and Atwater Valley, a combined study area that spans offshore acreage covering hundreds of miles across offshore Texas, Louisiana, and Mississippi in US federal waters. Water depths in the region range from 4,000 to 10,000 ft and depths of the wells can exceed 30,000 ft total vertical depth, subsea. Reservoir pressures in the Wilcox can exceed 20,000 psi. The Lower Tertiary Wilcox trend covered in the study has proven to be a highly successful exploration target, with considerable upside potential of up to 15 Bbbl of recoverable oil reserves, according to IHS estimates. “What we learned from the study is that overpressure variation has a significant impact throughout the play. Understanding the overpressure variation helps to minimize the drilling risk and inform on future exploration targets,” said Mark Diaz, senior geopressure analyst at IHS, and one of the study authors. “There are a number of operational challenges that exist alongside varying pressure regimes, including high bottom-hole temperatures, complex structural variances, and a canopy of salt that sits over much of the play, which makes the use of seismic data to visualize subsalt structures largely ineffective.” “This study gives clients a set of analytical tools and supporting insight that enables them to make sound exploration decisions and minimize the potential risks associated with drilling when they have poor visualization of the
subsurface,” said Sam Green, Ph.D., principal technical author of the study for GPT. According to the report, all of the wells with formation pressure data that were studied indicated overpressure, although the degree of overpressure varied widely. The overpressures in the report ranged from 9.1 pounds-per-gallon equivalent mud weight (ppg EMW) up to 15.7 ppg EMW across the Miocene and Wilcox. Analysis of the overpressure in the Wilcox showed that the highest overpressures are primarily in eastern Keathley Canyon and across the Walker Ridge protraction areas. The Wilcox data were analyzed with respect to compartmentalization versus lateral drainage as an explanation for the overpressure variation observed. The overpressure observations made in the Miocene have a significant impact on the subsalt play as a whole.
MWCC launches interim containment system The Marine Well Containment Co. has announced the completion and availability of an initial well containment response system that will provide rapid containment response capabilities in the event of a potential future underwater well control incident in the deepwater GoM. The initial response system includes a subsea capping stack with the ability to shut in oil flow or to flow the oil via flexible pipes and risers to surface vessels. The system also includes subsea dispersant injection equipment, manifolds and, through mutual aid among members, capture vessels to provide surface processing and storage. The company has consulted with the Bureau of Ocean Energy Management, Regulation, and Enforcement (BOEMRE) to ensure that the system is designed to meet the government’s requirements as outlined in NTL No. 2010-N10. ExxonMobil, in partnership with Chevron, ConocoPhillips, and Shell, continues to lead the development of additional system components to expand the initial system’s capabilities, with completion of the expanded system set for 2012. “The Marine Well Containment Company has successfully developed a solution for rapid well containment response,” said Marty Massey, chief executive officer. “This milestone fulfills a commitment set forth by the four sponsor companies to deliver a rapid containment response capability within the first six months of launching the marine well containment project.” The interim system can operate in water depths up to 8,000 ft and has storage and processing capacity for up to 60,000 b/d of liquids. The capping stack has a maximum operating pressure of 15,000 lb/psi. The equipment is located on the U.S. Gulf Coast. Membership in the Marine Well Contain-
The MWCC interim system includes a subsea capping stack with the ability to shut-in oil flow or flow the oil to surface vessels. The system provides rapid containment capabilities in the event of a well control incident in the deepwater GoM.
ment Co. is open to all companies operating in the US GoM. Members will have access to the initial well containment response system, as well as the expanded system upon completion of its construction. Non-members will also have access to the systems through a service agreement and fee.
OMSA calls for resumption of deepwater drilling The Offshore Marine Service Association says it has launched a national campaign to demand President Obama stop destroying jobs, and allow deepwater oil drilling to resume in the Gulf of Mexico.The campaign kicked off with an open letter to President Obama, denouncing the suspension of deepwater drilling in the Gulf. “President Obama has been trying to fool Americans into thinking that he lifted the moratorium on deepwater drilling in the Gulf,” said Todd Hornbeck, president and CEO of Hornbeck Offshore Operators and chairman of the Offshore Marine Service Association (OMSA). “Our education campaign will call him out on the facts: The Obama Administration is not issuing deepwater drilling permits, and the results have been devastating. It’s hurting tens of thousands of workers, increasing prices for gasoline and heating oil, and making America even more dependent on foreign oil.” More can be found at http://moratorium. offshoremarine.org/omsa/.
18 Offshore March 2011 • www.offshore-mag.com
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GE Oil & Gas Drilling & Production
Charting a course to deviated well production logging? You need MAPS. Building on the solid foundation of industry-leading Sondex* Wireline production logging systems, GE Oil & Gas’s Multiple Array Production Suite (MAPS) helps you tackle the next frontier: deviated well production logging. MAPS, with its Spinner Array Tool, Capacitance Array Tool and Resistance Array Tool, enables flow rate measurement and fluid identification in all well deviations. Circumferentially arrayed micro sensors excel where multiple phases flow through the well bore. This results in more accurate production logs, production optimization, and ultimate hydrocarbon recovery. MAPS can be run as a surface read-out or memory string with standard Sondex Ultrawire* Production Logging Tools and logged both dynamically and in stationary reading mode. MAPview imaging software seamlessly integrates flow velocities with fluid identification data to generate a comprehensive view of multi-phase flow in deviated wells, and simplify production log interpretation. To learn more about how GE Oil & Gas’s Oilfield Technology team can make your production logging services smarter and more efficient, please visit us at www.ge-energy.com/OFTLearn. * Denotes a trademark of General Electric Company
GE imagination at work
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Gene Kliewer • Houston
SUBSEA SYSTEMS
Peregrino buoy ahead of tow-out.
Buoy during pull-in to the Maersk Peregrino FPSO moonpool.
Peregrino gets submerged turret production buoy
tion 3 - Girassol Infills) with Total Exploration & Production Angola for the manufacture and supply of subsea production equipment to support the Girassol Resource Initiative (GirRI) project. The award has a value of approximately $80 million. Equipment supplied under Option 3 will support the Girassol field, located offshore Angola in the Gulf of Guinea. FMC’s scope includes the manufacture of three subsea production trees, six wellheads, and assorted flow base and jumper equipment. Deliveries are scheduled to commence in 4Q 2011. Petrobras has signed McDermott International Inc.’s subsea construction vessel Agile to install subsea flexible pipelines and umbilicals in up to 2,000 m (6,562 ft) of water offshore Brazil. McDermott also will provide subsea installation engineering for the duration of the five-year contract. Work is expected to begin at the end of 2Q 2011, with McDermott’s dedicated subsea engineering team mobilizing to Macae in Brazil for the duration of the project. While still on the topic of Brazil, Technip says it plans to expand its flexible pipe manufacturing capacity in Brazil by adding additional volume and high-end products. Technip says that Brazil’s hydrocarbon reserves in recent years have driven the demand for flexible pipes for infield flowlines and risers. The pre-salt developments will increase the demand for flexible pipes, both for flowline and riser applications, thus requiring additional capacity and technological capabilities. The investment will start this year with construction site preparation costing an estimated €30 million ($41 million). Additional phases will follow as Technip defines its clients’ technological needs.
Maersk FPSO has completed the retrieval and pull-in of a submerged turret production (STP) buoy into the Maersk Peregrino FPSO, offshore Brazil. Moored in 100 m (328 ft) of water in Peregrino field, block BM-C-7, Campos basin, Brazil, the STP buoy is held by 10 mooring lines each attached to the side of the buoy by Ballgrab mooring line connectors. A male Ballgrab connector was used to retrieve and pull the 600 metric ton (661 ton) buoy into the Maersk Peregrino FPSO by integrating a female connector into the top of the buoy. Prior to the FPSO arriving on-station, the male Ballgrab, attached to the pull-in rope, was lowered into the female connector on the STP buoy by the installation vessel Maersk Attender. Once the FPSO was in position, the buoy, held 22 m (72 ft) below the surface, was pulled into the vessel’s mating cone module. With the STP buoy locked in, the FPSO is permanently moored at its location.
Contract announcements China National Offshore Oil Corp. has contracted FMC Technologies Inc. to manufacture and supply subsea production equipment for the Liuhua 4-1 development project. The award has a value of approximately $85 million. Liuhua 4-1 will contain eight subsea trees and will tieback to the existing Liuhua 11-1 field. It is in 850-1,000 ft (260-300 m) water depths in the South China Sea, 130 mi (215 km) from Hong Kong and 150 mi (240 km) from Shenzhen. Deliveries are scheduled to commence in 4Q 2011. FMC also has signed an agreement (Op-
Subsea 7 S.A. confirms the award of a $160-million contract to SapuraAcergy Sdn Bhd from PTTEP Australasia (Ashmore Cartier) Pty Ltd for development at the Montara project in the southern Timor Sea approximately 690 km (429 mi) west of Darwin. SapuraAcergy’s work involves engineering, procurement, load out, transport, and construction to remove and disposal of the existing topside, and also the transportation and installation of new pipelines, risers, umbilicals, spools, manifolds, FPSO mooring systems, and a replacement topside. Montara is in water depths of approximately 80 m (262 ft). Engineering and project preparations are under way and offshore installation is scheduled during 2011 using the Sapura 3000, SapuraAcergy’s dynamic positioned heavylift and pipelay vessel. Chevron USA Inc. has contracted 2H Offshore for the detailed design and delivery management of the riser systems for the Big Foot field development. Big Foot field is owned by Chevron is operator and among others, the interest owners include Statoil Gulf of Mexico LLC. Big Foot is in the Gulf of Mexico Walker Ridge block 29, where a dry tree drilling and production TLP will be installed in approximately 1,600 m (5,200 ft) of water. The riser systems will consist of two highpressure drilling risers, 15 production/water injection top tensioned risers (TTR), and oil and gas export steel catenary risers. The scope includes system integration, procurement services, and offshore installation support of the TTRs and export riser systems. The 2H office in Houston is responsible for the contract and work.
20 Offshore March 2011 • www.offshore-mag.com
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Succeeding in subsea today takes
broader capabilities, bolder strategies, brighter ideas. E2E Subsea It stands for End-to-End Subsea. It means every part of your project performs. It means you’re in complete control. Aker Solutions is the only company structured to help you succeed in every stage of your development and production field lifecycle. We do this through a purposeful integration of technology, service capability and regional expertise known as End-to-End Subsea. Subsea is a key component within Aker Solutions’ complete oilfield services offering, which delivers integrated solutions to take on your biggest challenges and the confidence of working with a single accountable source that backs its work. We can assist with the entire lifecycle of your field, or selected systems within it. You’re the one in control. Take a more enlightened approach to subsea.
© Copyright 2011 Aker Solutions. All rights reserved.
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VESSELS, RIGS, & SURFACE SYSTEMS
Petrobras contracts construction of seven rigs Petróleo Brasileiro S.A. has contracted the construction of seven drilling rigs to Estaleiro Atlântico Sul at a total cost of $4.6 billion, or a unit price of $662 million. Petrobras will assign the construction contracts to Sete Brasil S.A which will charter the rigs. Day rate for each rig is estimated at $430,000-$475,000. The first rig is scheduled to start operating in 2015. A third bidding process to contract the chartering of packages up to four rigs is still under analysis and should be completed in no more than 30 days, Petrobras says.
Technip wins FLNG engineering contract Technip, in a consortium with Daewoo Shipbuilding & Marine Engineering Co. Ltd., has been awarded by Petroliam Nasional Berhad and MISC Berhad a front-end engineering and design contract for a floating liquefied natural gas (FLNG) unit. The FLNG, which will have a capacity of one million-tons per annum, will be located in Malaysia. Technip’s operating centers in Paris and Kuala Lumpur, Malaysia, will execute the contract, which is scheduled to be completed by the second half of 2011.
Ensco orders two jackups from Keppel Ensco plc says it has finalized a fixed price construction contact with Keppel FELS Ltd. in Singapore for two newbuild harsh environment jackup drilling rigs. The first is scheduled for 2Q 2013 delivery and the second for 4Q 2013. Cost per rig is given as $230 million and includes commissioning, system integration testing, and project management. Ensco also has until August 2011 to exercise an option for two more jackups of similar design. The rigs will be based on the KFELS Super A design for water depths of 400 ft (122 m). Each will have high-pressure/high-temperature equipment, an improved cantilever envelope, 2.5 million pound quad derrick, fully automated pipe handling, high capacity jacking and fixation systems, and 150 person quarters.
Atwood orders new drillship Atwood Oceanics Pacific Ltd. has executed a turn-key contract for a new ultra-deepwater drillship from Daewood Shipbuilding and Marine Engineering Co. Ltd. The Atwood Advantage is to be delivered by the end of September 2013 at a cost of $600 million. The Atwood Advantage will be a DP-3, dual derrick drillship rated to operate in water depths up to 12,000 ft (~3,650 m) and to drill to a depth of 40,000 ft (12,192 m). The Atwood Advantage will also have enhanced technical capabilities, including a seven-ram BOP, three 100-ton knuckle boom cranes, a 165-ton active heave “tree-running” knuckle boom crane, and 200 person accommodations.
Noble to construct two ultra-deepwater drillships Noble Corp. has contracted with Hyundai Heavy Industries Co. Ltd. for construction of two ultra-deepwater drillships. Deliveries are expected in 2Q and 4Q of 2013 at a cost of $650 million each. The rigs are to be based on a Hyundai Gusto P10000 hull design for operations in waters of up to 12,000 ft (~3,650 m), although either may be outfitted for less depending on specific contract requirements. Each unit will have DP-3 station keeping, the ability to handle two complete BOP systems, a heave compensated construction crane to facilitate deployment of subsea production equipment, and accommodations for up to 200 personnel. “We believe the fundamentals of the global ultra-deepwater mar-
Bruce Beaubouef • Houston
Purpose-built vessel to handle Statoil subsea contract Statoil has awarded a $260-million frame contract to Subsea 7 for inspection, maintenance, and repair (IMR) of subsea installations and pipelines across northwest Europe. “With increased focus on lifetime extensions and opportunities for enhanced oil and gas production by using existing infrastructure, there is a growing need for such subsea services,” said Jon Arnt Jacobsen, Statoil’s chief procurement officer. The contract covers provision of a dedicated vessel on a full-time basis, plus project management and engineering support, for ROV-based IMR work in the Norwegian Sea and North Sea, starting July 1. Subsea 7 has entered into an eight-year contract with Eidesvik Offshore to provide a new IMR vessel for this program, the Ulstein SX148, which is due to be delivered in late 2012. In addition to IMR duties, the SX148 can be used for well stimulation operations. According to Ulstein, the moon pool is located centrally in the ship’s hangar, in a layout providing a spacious and safe indoor work area on the main deck. It accommodates three ROVs and a module handling system. Also onboard is a 100-metric ton (11-ton) active heave-compensated crane to be used mainly for lifting/lowering heavy equipment from/to the sea floor. The vessel’s high freeboard means that the work deck is high above the waterline, which Ulstein says enhances the safety of the deck crew. The vessel can perform demanding operations in harsh weather conditions – its X-BOW hull line design reduces hull motion induced by high waves. It is also ice-reinforced for arctic conditions. The new vessel will be 106.5 m (349 ft) long and 24.5 m (80.3 ft) wide with a top speed of over 17 knots, and will be accommodated 90 personnel.
ket will continue to be strong in the decade ahead,” said David W. Williams, chairman, president and CEO, Noble Corp. “These units, capable of meeting the industry’s most stringent operating requirements, further support our continued commitment to increasing the technological and operational capabilities of our fleet. Furthermore, the previously announced Letter of Intent from Shell for one unit reduces the speculative risk and enhances future shareholder value.”
Dockwise selects HHI to build mammoth transporter Dockwise has contracted Hyundai Heavy Industries (HHI) to build its new transportation vessel, designed for ultra-large offshore consignments. The vessel is scheduled for delivery during 4Q 2012, following sea trials. Dockwise has categorized the vessel “Type 0” (T-0) to reflect its size. Previously Type 1 was the largest class, providing cargo capabilities of 41,000-73,000 tons. Dockwise currently has two Type 1 units in service. The new vessel, with an overall deck size of 275 x 70 m (902 x 229 ft), and a novel bow-less design, will offer a carrying capacity of over 110,000 tons. Dockwise says it will be the first of its kind in the maritime transport industry. The T-0 specification is subject to further detailed design engineering, following consultations with clients and HHI’s offshore division. Total cost of the vessel, including all project and design costs, is estimated at $240 million.
22 Offshore March 2011 • www.offshore-mag.com
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Eldon Ball • Houston
DRILLING & PRODUCTION
$120/bbl oil Several times a year, representatives of Deutsche Bank venture into the enigma that is Washington, D.C., to interview senators, congressmen, lobbyists, and the usual suspects regarding the current and probable future of the U.S. oil industry. Paul Sankey of Deutsche Bank then prepares an analysis for the bank’s clients. We value them for the fresh point of view compared to their US counterparts. The latest is no exception, as we’ll illustrate in a moment. But first we jump ahead to yet another analysis, also by Deutsche Bank – again regarding US oils – in which is buried unobtrusively a forecast for $120/bbl oil by 2012. Lest you miss the full impact of that prediction, we remind you that 2012 is next year. That figure -- $120/bbl – is not so surprising now, in light of the protests occurring in North Africa and the Middle East, but remember that it was made weeks before any of those events occurred. It is based not on an anticipated disruption of supply, which may or may not happen, but on change in the supply-demand balance based on evolving economic conditions. If supply disruptions occur – and that seems a real possibility – then the effect on oil prices will be much more dramatic, though possibly short term.
Train wrecks and sharks A full discussion on how Mr. Sankey reaches that price lies ahead in this column, but first, let’s look at what the bank researches found in Washington: “In the bewildering frenzy of Washington, DC, politics,” they write, “you meet lobbyists, staffers, lawyers, and journalists who have huge areas of ground to cover, and not enough time. To simplify the point, they get vivid with metaphors. Without irony, happy post-election Republicans refer to “sunshine as the best disinfectant” in reference to the EPA. EPA regulation, the GOP/industry claims, is a “train-wreck,” and they show you a spaghetti regulation map (the EPA shows the same map, but with just three stops). “The Democrats’ concession on offshore drilling weeks before Deepwater Horizon is described as ‘a child reaching for the cookie of an Energy Bill, and putting their hand on the burner.’ They won’t reach for the offshore drilling cookie again for a while…And so it continues. The metaphors are clear, but the conclusions are…we came away with little other than deepwater drilling in the Gulf of Mexico is massively delayed, beyond any previous thoughts.”
Spare capacity in OPEC – Bloomberg vs. a faded view
OPEC member
Capacity Bloomberg based reported on actual capacity production kb/d performance
Algeria Angola Ecuador Iran Iraq Kuwait Libya Nigeria Qatar Saudi
1400 2050 500 4000 2500 2650 1785 2500 900 11500
1400 1900 400 3900 2400 2650 1750 2100 900 11000
UAE Venezuela Total Capacity Call on OPEC 2011 Spare Capacity Spare capacity cover (demand/spare) Spare Capacity at 2.5 mbd growth ’11 Spare capacity cover
2650 2400 34835 29200 5635 3.76
2650 2200 33250 29200 4050 2.70
4635
3050
1.85
1.22
Comment Showed sustained production at this level in 2008 Showed sustained production at this level in 2008 Showed sustained production at this level in 2008 Has only exceeded 3900 on a spike basis in last decade Assumes that with no quota Iraq has been producing at max Ramped to and sustained 2600 in 2008 Ramped to 1785 in 2008 for around two months Wildly over-produces vs 1700 OPEC target = @ max capacity Sustained over 850 in 2008 Maximum 9500 sustained output in 2008; then had declared spare capacity of 1500 (heavy) Sustained over 2650 for three months in 2008 production has steadily declined to this level
At 1.5 mb/d there is spare capacity cover for nearly 3 years, giving Iraq time to ramp
But at 2.5 mb/d of demand growth, we will be spiraling by 2012
Source: Bloomberg Finance LP, Deutsche Bank
horizon – and Deutsche Bank believes it is – can a return of offshore drilling be far behind? The answer is obviously in favor of increased drilling, since $120/bbl oil would translate into about $4/gal gasoline, which in turn would generate enormous public pressure to increase supply. The question then becomes, how likely is $120 oil? To answer that, consider how Mr. Sankey reached $120 as a near-term price (and incidentally, the “point of destruction” for US oil demand). The report posits three developing market phases that will move to tighten supply: • A drawdown of oil inventories at sea (held in tankers when prices and demand were lower) • A drawdown of OECD inventories – a process that started in 3Q 2010 • A work-through of OPEC spare capacity until global demand growth equals OPEC spare Capacity (see accompanying table). At that point, supply and demand would be in balance, but demand would still be growing.
Demand growth Deepwater delays Note that their final and only clear conclusion was that deepwater drilling in the Gulf of Mexico “is massively delayed, beyond any previous thoughts.” But if $120 oil is sailing into view on the
Deutsche Bank expects global demand growth to come from countries that are coming off such a low base of oil demand with such high levels of GDP growth that oil demand strength is secular and largely unaffected by price – or from countries with subsidized oil
product prices (Middle East, Latin America). That explains the increase in demand, but what about working through OPEC spare capacity. That is, what is OPEC spare capacity? “We have a less optimistic view of OPEC spare capacity, which we believe should reflect lower Nigerian, Venezuelan, and Iranian capacity than is quoted by Bloomberg,” Deutsche Bank explains. Indeed, their estimate is at 4 MMb/d of oil, compared to the Bloomberg estimate of 5.63 MMb/d. “If we take the Bloomberg view of markets,” the report states, “we start with around 5.5 MMb/d of spare capacity. If we then view that spare capacity against global demand growth of around 1.5 MMb/d, which is more-or-less consensus (albeit under upward pressure) we have sufficient spare capacity cover to last us through 2014, even without Iraq growth. And by that year, we expect Iraq to be adding material barrels. “But our view is that the real spare capacity number is closer to just 4 MMb/d and real demand is closer to 2.5 MMb/d, which leaves us out of spare capacity cover by mid-2012, before Iraq has had time to make a difference. Of course, the Deutsche Bank scenario, although quite plausible, is only one of many. If supply disruptions occur -- and by the time you read this column they may already have -then forecasts for $150/bbl and $5/gal gasoline in the US are not unlikely. If so, the price scenario Deutsche Bank put on paper a few weeks ago becomes even more intriguing.
24 Offshore March 2011 • www.offshore-mag.com
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GEOSCIENCES
Spectrum, PGS combine on Greenland reprocessing The reprocessing of 7,357 km (4,571 mi) of 2D marine seismic data acquired in the 1980s off southeast Greenland is done, according to Spectrum and Petroleum Geo-Services. Using techniques perfected for sub-basalt imaging in the UK Atlantic margin and offshore India West Coast, Spectrum and PGS improved definition of the pre-Tertiary basalt sedimentary section. This reprocessed seismic data is now available as a final pre-stack time migrated product from either company. The data is from between 62º and 7º latitude and includes the southern part of the East Greenland rift basin. A 2007 US Geological Survey assessment of the data indicated undiscovered oil and gas reserves of 31.4 Bboe. The report says East Greenland forms the conjugate margin to the Norwegian continental shelf, Faroe-Shetland Islands, and Rockall basins. Interpreters expect analogues of successful plays in these better explored petroleum provinces will extrapolate into eastern Greenland. In a separate action, Spectrum has released a new suite of products called “East Med 2011.” The release covers more than 22,000 km (13,670 mi) of 2D multi-client seismic data, a well data report, a detailed analysis of geology offshore Lebanon, a Lebanese country guide, and training in deepwater exploration of the eastern Mediterranean. Spectrum developed these products following Noble Energy’s drilling success at Dalit, Tamar, and Leviathan in the Leviathan basin. The well data in the suite includes data compiled on detailed stratigraphy (biostratigraphy and lithostratigraphy), well logs, pressure tests, and drilling results from nine wells in the region. Compiled recently by ATenergy, the report gives detailed interpretation of regional geology and tectonics. It also contains seismically derived maps of offshore Lebanon and analysis of the recent Noble discoveries.
Deepwater seismic node development PGS also has agreed to cooperate with SeaBird Exploration Plc to move forward the development of ocean bottom nodes for use in deepwater. “This agreement enables the two companies to provide a complete seismic offering in deep water areas, in areas with complex geology, and in areas with heavy infrastructure on the sea bottom,” said Jon Erik Reinhardsen, CEO of PGS. PGS says expects this agreement to be of benefit also in the reservoir monitoring market, which has been, and is expected to be, the fastest growing segment of the seismic market.
New technology releases Sercel has released an enhanced version of TriggerFish, its realtime navigation and data acquisition system for control of a distributed fleet of vessels during acquisition in transition zone, OBC, node, and 2D streamer seismic surveys. TriggerFish 1.7 features multi-shooter/multi-recorder, and advanced radio communications and fleet synchronization. The system can scale to four vessels per radio link. Additional features are provided through enhanced mapping functionality which includes the zone incursion and proximity alarm system. TriggerFish 1.7 also has operational advantages, according to Sercel. The need for fewer operators reduces the cost of operations and longer radio network ranges enable more advanced survey designs using larger seabed receiver patterns, longer streamers, and longer wide-azimuth offsets. Fugro-Jason has released a new version of its petrophysical interpretation software. PowerLog 3.2 adds new features and enhances many current capabilities. New features include an electrofacies interpretation module based
Gene Kliewer • Houston
2011 Seismic Vessel Survey Starting on page 38 is this year’s Seismic Vessel Survey. Based on the increased count, seismic survey companies are more optimistic than in the last couple of years. Check the table of vessels to see who can do what and where in the seismic acquisition business. Offshore relies on the vessel owners and operators for this information. If you have any additional information, please send it to
[email protected] at any time.
Polarcus has held a double naming ceremony for two vessels. The Samur and Alima both were christened at Drydocks World – Dubai. POLARCUS SAMUR is a purpose-built eight-streamer 3D seismic vessel of the ULSTEIN SX133 design. POLARCUS ALIMA is a purpose-built 12-streamer 3D seismic vessel of the ULSTEIN SX134 design. Both hold an ICE-1A Class notation for arctic operations. Polarcus also cut first steel on another newbuild. Referred to as NB292, the vessel will be an ULSTEIN SX134 design with the ICE-1A “super” classification. This 3D vessel will be able to tow as many as 14 solid streamers with 100 m later separation. Delivery is scheduled for March 2012.
on interactive selection of curve values on logplots and crossplots, sample highlighting across viewers (logplots, crossplots, histograms) to identify data of interest and to output a curve with different values assigned to samples in the different highlight sets, interactive core shifts with concurrent construction of core shift tables that can be applied to other cored intervals, and enhancements to all Logplot interactive editors (depth shift, baseline shift, etc.) to streamline editing. In addition to the new features and enhancements, the new version further streamlines the user workflow within and across projects, says Fugro-Jason. Geomodeling Technology Corp. has released SBED 4.1 and SBED 4.1 for Petrel. These near-wellbore modeling applications add automatic core plug conditioning to the modeling of small-scale sedimentary details and generates lamina-scale properties for use in reservoir modeling and simulation. This release also directly imports data from Numerical Rocks e-Core digital pore-scale modeling software. Additional new features include an improved simulation engine and data analysis tools. Geologists and petrophysicists using SBED 4.1 can input core plug data derived from laboratory analysis and the application automatically conditions a near wellbore model to match those results, says Geomodeling. “Core plug conditioning and a pore-to-lamina scale workflow are part of our focus on solving difficult problems that our customers face in today’s complex reservoir environments,” says Mark Klingbeil, Geomodeling CEO.
26 Offshore March 2011 • www.offshore-mag.com
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Nantes, France
[email protected] Houston, USA
[email protected] www.sercel.com
A N Y W H E R E . A N Y T I M E . E V E RY T I M E .
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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
3D design tools help EPCs and owner/operators alike Dick Slansky Harry Forbes
ARC Advisory Group The wide diversity of energy market requirements and enabling technologies drives strong demand for design/build/operate solutions for oil and gas projects. These projects require engineering design solutions that span multiple disciplines and applications, from platform and plant design, process simulation, equipment design, mechanical, electrical, and controls design, collaborative engineering, data model management and version control, to document and drawing management. As energy projects become larger and more complex, engineering/procurement/construction contractors (EPCs) become much more dependent upon 3D design tools. Moreover, data and model management, project management, engineering change management, and design collaboration across multi-discipline engineering organizations is essential to the overall design/build process. As the demand for energy increases steadily across the globe, leading EPCs deal with new projects that span multiple power generation sectors, each with its own set of requirements and technologies that make projects within each sector distinct in terms of designing, building, and commissioning. EPCs use a variety of engineering design and data management applications from design/build solution providers. This very heterogeneous environment significantly challenges the EPCs using such a range of engineering design tools, with multiple formats, models, and configuration management frameworks. Additionally, since the lion’s share of today’s EPC business is global with a variety of stakeholders ranging from owner/operators to extended supply chains for equipment mandates, a company’s design engineering solutions must be both open and highly collaborative.
3D design and EPC projects Today’s design solutions offer a broad range of design/build capabilities. For some time now, suppliers have based design applications on 3D modeling. These provide the EPCs with the ability to model in 3D space. For offshore and other energy sector projects, 3D modeling is a critical aspect of design work, which has become essential for structural design, and for configuring all the equipment and infrastructure. Modeling in 3D is the most effective way to do space control, and most EPC tools provide automation features to reduce the labor required to lay out, detail, and revise infrastructure such as pipes and raceways. Additionally, these 3D design tools perform clash analysis to determine interferences between structures,
equipment, and infrastructure. They can also adapt designs to various industry and owner/ operator standards or practices. Designing in 3D space provides the ability to visualize and integrate multiple engineering disciplines, plus the flexibility to make configuration and structural changes throughout the design process. As projects grow in size and complexity, especially in energy-related projects, EPCs have come to depend on their 3D design tools. Moreover, data and model management, project management, engineering change management, and design collaboration across multi-discipline engineering organizations have become essential to the overall design/build process. Managing the mass of information generated by design/build requirements for major projects represents a primary challenge.
The need for collaboration EPC engineering managers have made it clear that they would like better data management platforms with a more collaborative engineering design environment for their geographically dispersed engineering teams. They see the need to move to a central data repository for all design models, build data, and equipment and asset data. Moreover, beyond engineering organizations, they need a highly collaborative platform to support the wide range of partners, owner/operators, and stakeholders throughout the global operations typical of today’s large EPCs. Information management and interoperability of models and data are critical to doing business and managing large projects efficiently and successfully. EPCs agree that interoperability should be standards based, as in ISO 15926. Major plant design software providers support this standard for data integration, sharing, exchange, and hand-over between computer systems. While the current design solution providers offer robust building information modeling/ management (BIM) systems, EPCs would like to see better data management and design collaboration capabilities across all their various engineering organizations and equipment providers. This is why most EPC design/build processes still involve a mixture of commercial software and in-house applications, which can include data management. While EPC organizations recognize the need to improve data management and collaboration, they are reluctant to rely on their design software providers to handle all the specialized in-house applications, data formats, and handover information that their customers demand. Further, the EPCs want to provide better data management services for their owner/operator customers, especially at facility/plant handover.
Data management Information management is as important to the owner-operators as it is to EPCs. In fact, most owner/operators consider the handover process (where all of the plant/facility drawings, layouts, equipment, and infrastructure information are handed over to the operating organization) one of the most critical aspects of the project. Not only is this engineering information essential to the operation of the facility, it must be managed and organized properly so it can be accessed readily and available to the operations personnel during plant life. The owner/operators clearly need the same information management and collaborative engineering platforms that the EPCs obtain from their engineering design software suppliers. Currently, most owner-operators do not demand a 3D design model from the EPC at project completion. Nearly all of them want the asset information turned over in a form they can import into the operations/asset management/maintenance/management systems they use to operate and maintain the facility. This generally takes the form of 2D drawings and other equipment/asset database population that operations personnel are able to use without the specialized training needed for a 3D design environment. Owner/operators are beginning to show interest in 3D virtual simulation for use in training and safety incident response and mitigation. Virtual simulation tools also are beginning to be applied to the pre-construction phase of new projects where simulation can detect interferences and streamline construction activities. A complementary technology applied to the virtual simulation area is laser scanning and point cloud analysis to accurately capture existing physical structures and equipment. The point cloud data is imported into a 3D design application to generate a 3D model, which can be used for rework and refurbish.
The authors Dick Slansky is senior analyst at ARC Advisory Group, focusing on digital manufacturing. He holds a BS in Mechanical Engineering from the University of Kansas and a BS in Computer Science from Seattle Pacific University. Harry Forbes is senior automation analyst at ARC Advisory Group, and has over 25 years experience in automation, modeling and simulation, advanced control, and optimization. He is a graduate of Tufts University with a BS in electrical engineering and has an MBA from the Ross School of Business at the University of Michigan.
28 Offshore March 2011 • www.offshore-mag.com
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Global Energy and Mediterranean Opportunities 𰀳𰁂𰁗𰁆𰁏𰁏𰁂𰀁𰀎𰀁𰀪𰁕𰁂𰁍𰁚 𰀮𰁂𰁓𰁄𰁉𰀁𰀓𰀔𰃛𰀓𰀖𰀍𰀁𰀓𰀑𰀒𰀒 OMC is organised in Association with
Supporting Industry Associations
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Under the High Patronage of $6620,1(5$5,$
Italian Prime Minister’s Office
Ministry of Economic Development
Ministry of Environmental Protection
Conference Organiser
𰀷𰁊𰁂𰁍𰁆𰀁𰀭𰀏𰀤𰀏𰀁𰀧𰁂𰁓𰁊𰁏𰁊𰀁𰀒𰀕𰀁𰃇𰀁𰀕𰀙𰀒𰀓𰀒𰀁𰀳𰁂𰁗𰁆𰁏𰁏𰁂𰀁𰃇𰀁𰀪𰁕𰁂𰁍𰁚 𰀱𰁉𰀏𰀁𰀌𰀔𰀚𰀁𰀑𰀖𰀕𰀕𰀁𰀓𰀒𰀚𰀕𰀒𰀙𰀁𰃇𰀁𰀧𰁂𰁙𰀁𰀌𰀔𰀚𰀁𰀑𰀖𰀕𰀕𰀁𰀔𰀚𰀔𰀕𰀘 𰁆𰀎𰁎𰁂𰁊𰁍𰀛𰀁
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Emilia-Romagna Region
Province of Ravenna
Municipality of Ravenna
Exhibition Organiser
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𰀻𰀏𰀪𰀏𰀁𰀴𰁆𰁕𰁕𰁆𰁗𰁆𰁏𰁆𰀁𰃇𰀁𰀷𰁊𰁂𰀁𰀤𰁂𰁔𰁔𰁊𰁂𰀁𰁌𰁎𰀁𰀔𰀗𰀍𰀕𰀑𰀑𰀁𰃇𰀁𰀑𰀒𰀑𰀔𰀗𰀁𰀯𰁆𰁑𰁊𰀁𰀉𰀷𰀵𰀊𰀁𰃇𰀁𰀪𰁕𰁂𰁍𰁚𰀁 𰀱𰁉𰀏𰀁𰀌𰀔𰀚𰀁𰀑𰀘𰀗𰀒𰀁𰀖𰀓𰀘𰀚𰀘𰀗𰀁𰃇𰀁𰀧𰁂𰁙𰀁𰀌𰀔𰀚𰀁𰀑𰀘𰀗𰀒𰀁𰀖𰀓𰀘𰀚𰀕𰀖 𰁆𰀎𰁎𰁂𰁊𰁍𰀛𰀁
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CASPIAN SEA
Operators to step up Caspian Sea production
Chris Boulter Peter Kiernan Roger Knight
Infield Systems Ltd.
Continued development of the ACG, Shah Deniz, and Kashagan projects is expected to lead to a capex growth of more than $4 billion annually by 2016
A
s the largest enclosed body of water on Earth, and with petroleum reserves in excess of 50 Bboe, the Caspian Sea is a major offshore oil and gas province. Oil and gas activity in the region began with the drilling of the Bibi-Eibat field offshore Azerbaijan, which produces to this day. Since then, further discoveries have been made and developed, all of them in the shallow waters of the Absheron peninsula between Azerbaijan and Turkmenistan in the southern portion of the Caspian Sea. By the outbreak of World War II, Azerbaijan accounted for around 70% of the then Soviet Union’s petroleum production. Considered tactically vulnerable, and with Germany targeting Baku for capture, the Soviets evacuated the area and moved 11,000 oil specialists to the Tatarstan province in the Volga-Urals region, which subsequently was nicknamed “a second Baku.” Following the end of WWII, production restarted in the Caspian Sea, and further discoveries have been made over the subsequent years. Although causing significant disruption in the region, the break up of the then Soviet Union in the late 1980s galvanized the industry as the former Soviet states of Azerbaijan, Kazakhstan, and Turkmenistan began to seek the investment and technical expertise of international oil companies (IOCs). By the new millennium, 10 major IOCs were active in the Caspian Sea, including supermajors such as Shell, BP, ExxonMobil, and Total. Activities also had extended to the harsher northern Caspian Sea with the discovery of the 569 MMboe Yurii Korchagin field in 2000.
Kashagan The Kashagan oil field in the northern Caspian Sea was discovered in 2000 and 19 exploration and appraisal wells have been drilled since with an unprecedented 100% success rate. It is the largest oil field outside the Middle East, and the fifth largest in the world in terms of recoverable hydrocarbons (with reserve estimates in excess of 13 Bboe). However, the field’s great depth (15,000 ft or 4,572 m below sea bed), high sulfur (H2S) content, and high pressure reduce
Current and future oil and gas activity in the Caspian Sea (Source: Infield Systems).
the recovery factor to 15-25%. Furthermore, the shallow water depth and cold temperatures at the site are unsuitable for typical fixed or floating platform designs. Instead, offshore facilities are being installed on artificial islands, offering protection from pack ice movement and providing uninterrupted production capability. There are two main types of islands – large, manned hub islands in the center of the development protected by several ice barriers; and also a number of small, outer unmanned “drilling islands.” Hydrocarbons extracted will travel from the drilling islands through pipelines to the hub islands, where they will then be processed before transport to onshore facilities and subsequent export. During Phase I of the project, around half of the gas produced will be re-injected into the reservoir to maximize recovery. The field is being developed by a partnership that includes Shell, Eni, ExxonMobil, ConocoPhillips, Inpex, Total, and the Kazakh state run KazMunaiGas, in a consortium known as the Northern Caspian Operating
Co. (NCOC). Eni is responsible for Phase I of the project, and will be succeeded by Shell as the field moves into more production phases. The complexity of the project has seen costs repeatedly rise for Phase I, and total development costs are currently estimated to be $136 billion, making it the most expensive oil and gas project in history. The Phase II operator, Shell, has striven to reduce future capex and announced in late 2010 a reduction in costs of over $18 billion. An initial onstream date of 2005 has been repeatedly pushed back, and Kashagan now forecasts production to begin in 2012.
ACG The Azeri-Chirag-Gunashli (ACG) development is a large complex of fields offshore Azerbaijan at a water depth of approximately 125 m (410 ft), significantly deeper than northern fields such as Kashagan. Gunashli Deep was discovered in 1977, followed by Chirag in 1985, and Azeri in 1986. Total recoverable reserves in place are estimated to exceed 6
30 Offshore March 2011 • www.offshore-mag.com
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CASPIAN SEA
Top oil and gas projects in the Caspian Sea Project
Total Reserves Onstream Depletion (mmbble) Year Year Development Type
Kashagan 14,761 ACG 7,211 Shah Deniz 6,915 Satmavskaya 2,542 Khvalynskoye 1,981 Guneshli 1,620 Neftianye Kamni 1,388 Livanov 1,128 Kurmangazy/Kulalinsky 1,125 Bahar 1,103
2012 1997 2006 2018 2016 1980 1949 2011 2019 1969
2072 2038 2067 2054 2046 2025 2019 2036 2049 2035
Operator
Fixed/Floating Platform And Artificial Islands NCOC Fixed Platform and Subsea Satellite BP Fixed Platform, Subsea and Extended Reach Drilling BP Fixed/Floating Platform Lukoil Fixed/Floating Platform Lukoil Fixed Platform and Subsea SOCAR Fixed Platform SOCAR Fixed Platform Petronas Fixed/Floating Platform KazMunaiGaz Fixed Platform and Extended Reach Drilling SOCAR
Source: Infield Systems data.
Gas and condensates are transported 100 km (62 mi) to the onshore Sangachal terminal, before being piped through the recently built South Caucasus Pipeline (SCP) into Turkey. It has a capacity for 20 Bcm/yr (706 bcf/yr) and can supply 5% of the EU’s gas imports. The Shah Deniz field also has been mooted as the prime initial gas source for the proposed Nabucco pipeline which, if completed, would stretch from Turkey into the heart of Europe. This pipeline project is aims to help diversify Europe’s energy supplies from a dependence on Russia. Furthermore, accessing Azeri offshore gas through a supply route that does not traverse Russia is seen as a key component of this policy.
The best of the rest Growing onstream reserves and capex in the Caspian Sea
The remaining 48 fields so far discovered in the Caspian Sea account for an additional 13 Bbbl of liquids, giving a total in offshore reserves of over 53 Bbbl offshore Caspian. This highlights the significant amount of proved hydrocarbons present in the region, placing it in a prime position to supply local and international markets. The area also remains relatively unexplored – especially in the northern, harsher part of the Caspian Sea whose potential was so well underpinned by the discovery of Kashagan.
“Kash” money Source: Infield Systems data.
Bbbl of oil. The fields are operated by a BP-led multi-national consortium known as the Azerbaijan International Operating Co. (AIOC), and include SOCAR (Azerbaijan’s state oil company), Chevron, INPEX, Statoil, ExxonMobil, TPAO, Itochu, and Delta Oil Hess. First oil was produced from Chirag in November 1997 and now incorporates three fixed platforms and over 60 production and injection wells. The slightly deeper Azeri field came onstream in early 2005 and has a field life estimated at approximately 30 years. It incorporates four piled fixed production platforms, and one central compression platform. The final field, Gunashli Deep, came onstream in April 2008 and was developed using two fixed platforms and over 30 subsea and surface wells. Gunashli Deep also incorporates several water injection wells intended to increase oil production during its 30-year life. Oil from the Azeri and Chirag fields transfers to the onshore Sangachal terminal south of Baku via two separate pipelines, while Gunashli Deep oil is transferred via the Neftianye Kamni complex to the onshore Kyanizadag terminal east of Baku. There are plans for a possible oil pipeline in 2018, to export oil from these fields to Turkmenistan and further east to Asian markets such as China.
Over $5 billion has been spent on the offshore infrastructure of ACG, and an additional $1 billion is expected to be spent over the next four years. Over 50% of this expenditure is to be on the largest field, Azeri. Unlike Kashagan, whose total capex will dwarf ACG, the development has been relatively straightforward, with relatively shallow water depths, little risk of sea ice, and location in a region that has 50 years of offshore platform experience.
Shah Deniz The largest gas field in the Caspian Sea is 60 km (37 mi) southeast of ACG, in water depths varying between 80 to 600 m (262 to 1,968 ft). Shah Deniz is estimated to hold over 34 Tcf of gas, and almost 900 MMbbl of condensate. Discovered in 1999, Phase I came onstream in late 2006 with one fixed platform, and it is expected to last for half a century. Phase II gas flows are expected in 2017 from up to three fixed platforms contributing to total capex for the project of $2.6 billion. In 2007, another deeper structure was found over 7,000 m (22,965.8 ft) below the surface, and was deemed viable for development in two stages. Shah Deniz is operated by a consortium that includes BP as operator, Statoil, SOCAR, Total, LukAgip, NICO, and TPAO.
Historically, Azerbaijan leads the region in offshore petroleum reserves, rising slowly to over 10 Bboe in 2000, with some contribution from Turkmenistan’s territory along the productive Absheron shelf. Capex has remained generally in line with reserve growth, with a noticeable decrease in the 1990s, a likely fall out from the dissolution of the Soviet Union. Development and first oil from the first of the large ACG fields (Azeri) in the late 1990s, and subsequent development of the Chirag and Gunashli fields a few years later, doubled Caspian Sea capex in the space of five years. Although international oil companies have been active in the region for nearly 20 years, the next decade will see even greater oil and gas activity as reserves continue to grow and the region becomes a major oil and gas province. Continued development of the ACG complex and Shah Deniz projects in the south, and the Kashagan field in the north, as well as its large satellite fields, will see an Infield Systems growth estimate of over $4 billion annually in capex by 2016. Pipeline installation accounts for a large proportion of capex over the next few years, with a significant rise in 2016 and 2017 due to two possible trans-Caspian pipelines in the south, along with further pipelines linking Shah Deniz and Kashagan to onshore terminals. A large proportion of remaining capex is predicted to go into offshore platforms, with fixed piled platforms still the installation of choice in the
32 Offshore March 2011 • www.offshore-mag.com
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CASPIAN SEA
water depths experienced in the Caspian. Towards the end of the forecast, floating platforms capex increases as development moves forward at the Kashagan satellite field of Kalamkas using barge-mounted units deployed to the drilling islands, in preparation for first oil in 2020. Subsea capex, meanwhile, is limited to the subsea developments at ACG and possibly Shah Deniz’s deepwater portions. The Kashagan field, as well as significantly increasing Kazakhstan’s reserves, is predicted by Kazakh authorities to require over $136 billion in investment over its 40year life.
Cold as ice Although it shares its latitude with the sunny wine regions of southern France, the northern Caspian Sea can experience temperatures below -30ºC (-22ºF) in winter. Low salinity, due to the in-flow of fresh water from the Volga River, together with shallow waters and low temperatures means the northern Caspian freezes over for nearly five months of the year. In contrast to the waters of the Arctic Ocean, water depths in the northern area are very shallow, rarely over 7 m (22 ft), resulting in thin, fast-drifting ice than can change direction and speed rapidly. Ice also piles up in shallow areas and against drilling platforms, forming rubble piles up to 10 m (32 ft) thick. These conditions create an ultra-harsh, arctic-like environment for offshore oil and gas operators, significantly increasing the difficulty of year-round operations where almost 50% of the Caspian Sea’s reserves are found. The 570 MMboe Yuri Korchagin field in Russia was the first in the Caspian, and the world, to use an ice-class floating storage offloading vessel (FSO). Able to withstand
ice conditions of -20ºC (-4ºF) and ice thickness of 0.6 m (2 ft), the FSO worked in tandem with two linked offshore ice-resistant platforms, LSP-1 and LSP-2, which rested on the sea floor. LSP-1 was based on the Shelf-7 semisubmersible design (active in the Caspian) and incorporated a “skirt,” protecting the risers and platform legs from ice flows. The other high profile offshore development to manage cold temperatures and sea ice was Kashagan, where artificial islands and ice barriers were built in very shallow water depths. The world’s first ice-class drilling barge also was used to drill on the development, incorporating four-meter (13-ft) high curved ice deflectors and 24 piles driven 27 m (88.6 ft) into the sea floor, breaking up ice before it reached the platform and preventing ice pile up against and onto the barge. At present, there are five ice-breaking supply vessels (IBSVs) operating in the northern Caspian Sea, serving Kashagan, and other offshore developments such as Yuri Korchagin. Of particular note are the Aker Arctic designed Arcticaborg and Antarcticaborg, IBSVs specially designed with shallow draughts to operate successfully in the Kashagan area. The Kogalym and Langepas are multi-purpose duty rescue vessels able to travel through ice up to 0.7 m (2.3 ft) thick in -20ºC, serving Lukoil’s seven fields in the Caspian Sea.
Market maker The Caspian Sea lies at the center of the new world. To the west lies Europe, importing over 10 MMb/d of oil. Relative political stability, developed infrastructure, and an established oil and gas market signals an attractive destination for Caspian petroleum. To the east lies China, importing over 4 MMb/d, and with an annual oil consumption growth of over 5% in the last
10 years. With such a vital resource region between the EU, Russia, China and the Middle East, and with demand ever increasing, the Caspian Sea may come under increasing geopolitical pressure in the future. China, for example, experienced a natural gas shortage exceeding 32 Bcf in 2010 according to information from the South China Coal Trading Centre. The Caspian Sea holds 123 tcf of natural gas, and therefore China is eagerly awaiting the 2013 completion of the pipeline across Kazakhstan along a similar route to the existing Kazakhstan-China oil pipeline. To the west, European nations consider the Caspian region as a lynchpin for efforts to diversify from Russia as a source and conduit of supply.
Looking ahead Although the Caspian Sea is half the size of the North Sea, it is comparatively unexplored. The arctic-like northern sector has experienced exploration only recently while the region to the south of Baku remains relatively untouched due in part to territorial disputes with Iran. These revolve around whether the Caspian is “legally” a sea or a lake. If it is a sea, the nations surrounding it can divide it into separate national sectors. If it is legally defined as a lake, all of the resources might need to be divided fairly, in this case into five. In other words, if Iran, for instance, could get the Caspian Sea ruled as a lake, by definition, it could make it possible for Iran to claim 20% of Kashagan’s reserves and revenues. Nonetheless, as revenue from growing petroleum exports flows back into the region, oil and gas activities will only increase, further enhancing the region’s international profile as an emerging petroleum power-house.
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CASPIAN SEA
Dragon lays foundations for growth at Turkmen offshore complex
Jeremy Beckman
Editor, Europe
D
evelopment of the Cheleken Contract Area (CCA) fields off Turkmenistan has entered a new phase. After years of painstaking rehabilitation of the fields’ Soviet-era platforms and wells, operator Dragon Oil aims to step up production by expanding interfield and export infrastructure and rig capacity. The company, headquartered in Dubai, signed a 25-year production-sharing agreement for the CCA in November 1999 (effective from May 2000) with Turkmenistan’s State Agency for the Management and Use of Hydrocarbon Resources. Under the PSA, recovered oil and gas is shared between the two parties according to the level of production at a given time. As operator, Dragon Oil is obliged to supply all capital and expertise for development and exploration programs. Estimates of remaining resources change as more wells and workovers are completed. The latest assessment by independent consultants upgraded recoverable oil and condensate to 639 MMbbl, compared with 617 MMbbl at end-2009. This is due to an increase in proven reserves in the Dzheitune (Lam) West area and additional condensate to be extracted from the CCA’s gas reserves (currently booked estimate: 1.6 tcf) once a planned onshore gas treatment plant becomes operational. Presently, all produced crude is exported via the nearby Aladja Jetty to Baku, primarily for onward delivery westwards through the Baku-Tbilisi-Ceyhan pipeline.
Improved throughput Last year, Dragon contracted four drilling rigs to drill and complete 11 new wells or workovers. Two of the wells were drilled last spring from the newly installed Dzheitune (Lam) B platform by the Astra jackup. To date, four wells have been drilled and completed from this structure During 2010, Dragon also concluded and commissioned various infrastructure projects. These included: • Doubling the processing capacity of the offshore central processing facility to handle up to 100,000 b/d of liquids and up to 220 MMcf/d of (unprocessed) gas • A new 30-in. (76-cm), 40-km (24.8-mi) multi-phase subsea trunkline to Aladja, replacing two existing 12-in. pipelines • Additional interfield pipelines for the Dzheitune (Lam) field, between Platform 28 and
The new Dzheitune (Lam) B platform. Dragon has since commissioned a further two new wellhead and production platforms.
Platform A (18-in., or 46 cm); Platform A to block 2 (20-in., or 51 cm); and Platform B to Platform 28 (14-in., or 35.6 cm). These provide increased throughput capacity and will accommodate future development of the western part of the CCA. The effect of these measures has been to eliminate infrastructure bottlenecks and to improve daily flow rates at end-2010 (exit rate) to just over 57,000 b/d, up from the previous year’s exit rate of 49,698 b/d, and average production of 44,765 b/d during 2009. Dragon also awarded construction contracts to local yards for two new wellhead and production platforms. ILK Insaat Taah, San. Ve. Tic is building the Dzheitune (Lam) C platform. Following completion late this year, it will be installed in the western part of the Dzheitune (Lam) field, targeting reserves beyond the reach of the existing Dzheitune (Lam) B and 28 platforms. It will be able to support a jackup rig, with up to eight slots for drilling. Caspian Energy Projects LLC is building the Dzhygalybeg (Zhdanov), a platform and bridge-linked accommodations, which will be installed on the eastern part of the hitherto undeveloped Dzhygalybeg (Zhdanov) field following completion in early 2012. The drilling facility will be able to support a land rig and a jackup. At least eight wells and maybe more will be drilled from this platform depending on results from the first few wells. Towards the end of 2011, a new Super M2 jackup, under construction at the Yantai Raffles Offshore yard in Singapore, will be dispatched
in various consignments to the Caspian Sea for subsequent re-assembly at one of the region’s shipyards. Yantai Raffles’ contract extends to lease and management of the rig, which is more powerful than any in Dragon’s current drilling fleet and capable of drilling wells faster and more efficiently, the company says. For this year’s campaign, Dragon has retained the land rigs NIS and Rig 40 to drill up to seven wells from the Dzheitune (Lam) 28 and 13 platforms. The extension of the contract for the jackup Iran Khazar has been agreed in principle for two years, with up to four wells in 2011 from the Dzheitune (Lam) B platform. Another jackup involved in last year’s program, Astra, could be brought in again. Dragon plans to maintain its rolling program of drilling and workovers from existing platforms. “We add slots on an ongoing basis,” the spokesperson says, “taking into account drilling results from the previous wells on that platform, new spots we could target and so on.” The reservoir is complex, requiring use of dual-completion and high-angle extended reach wells to maximize production, combined with 3D seismic imaging and reservoir simulation. The company also looks to target new reserves in the Cheleken Extension Area, although plans are currently on hold until a suitable jackup becomes available.
Gas studies Dragon is producing around 120 MMcf/d of associated gas, most of which is flared. However, following the improvements to the central processing facility and other new investments, the company has started bringing unprocessed gas to the shore through the new 40-km (25-mi) trunkline for onward export into the Turkmen gas network, once facilities such as the compressor station and a connecting pipeline are completed. For 2011-13, the company has budgeted a further $600-700 million for oilfield facilities and $150-170 million on gas development. The long-term plan for the CCA area involves phased installation of further new wellhead platforms and related infield lines. Dragon has commissioned a generic FEED study to devise a template that would serve to improve and standardize platform design with a view to optimizing drilling and cutting construction costs.
34 Offshore March 2011 • www.offshore-mag.com
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GEOLOGY & GEOPHYSICS
Seismic vessel count regains numbers Technological advances in geophysics push capabilities
O
ffshore’s seismic vessel survey for 2011 shows both new vessels and some additional players. These combine to push the total number of these vessels higher than in 2010. The tally of vessels on the following table is 163. This compares to 156 in 2010. This increase of seven also counts of newbuilds contracted for delivery but not yet in service. The new vessels show a built-for-purpose trend in that many are being specified and outfitted for particular types of surveys such as 4D and ocean-bottom node applications. While the onshore excitement surrounding tight gas and shale plays has shifted some of geophysical attention away from offshore, there remain indications of some significant trends in subsea survey technology. When some of these will become broadly operational is anyone’s guess, but the industry has a way of accelerating when the price is right. These trends take two directions: One is the traditional hardware and processing advances year over year. The other involves a completely new approach to geology and geophysics. Some recent hardware and field-oriented advances already are in practice. Methods of running surveys such as WesternGeco’s coil vessel track are out of the trial phase and making an impact in everyday work. OBC and 4D are in the mainstream now. Visualization in three dimensions is no longer a novelty. Processing power continues to increase and also to become desktop friendly. However, with the capex risks of deep wells in deepwater, or even in shallow water, the pressure on getting better data from the field is not going to lessen. No matter the size of the company, a $100 million dry hole is bad news. Therefore, the research and development into getting more and better data from the field will result in important changes. Getting all the value out of more and better data depends upon processing power and algorithms perceptive enough to interpret that data. Once interpreted, the results have to be presented in a useful manner. All these areas are seeing technological leaps. Better survey methods generate more data. More data requires more processing power. Greater processing power begets more sophisticated interpretive programs. New methods of interpretation generate new methods of data visualization. When all the
Gene Kliewer
Technology Editor, Subsea & Seismic
(Above) Photo courtesy WesternGeco. (Below) Photo courtesy Polarcus.
available data is mined completely, ways to acquire even larger data sets evolve. The system goes in a circle to impel the business of geology and geophysics. Over recent years, the trend has been for new developments offshore to be adapted for onshore use. Now, with the emphasis of onshore development, some of that technology may be expected to trickle down to offshore operations. One example area is sensors. More sensors gather more data. Shell and HP are working onshore to test a very small sensor that is not only cheaper to manufacture, but because of its size and sensitivity is less expense to place and retrieve. Therefore, more of them can be used without an equivalent jump in the cost of a survey. The adaptation needed to take these sensors offshore should be minimal.
New vessels BGP is not new to the Seismic Vessel Survey. However, the company is taking a more active approach to providing surveys. The BGP
Explorer is done with its conversion at Tanggu, China, and is equipped for 2D and small 3D surveys towing one to four streamers. BGP is playing off its experience in shallow waters, undershooting, and severe environments. The Bergen Group has moved ahead on a rebuild of the Geowave Master at a cost of about NOK 170 million ($29 million). Orogenic GeoExpro has taken delivery of the Genesis from Trinity Offshore based on a charter through 3Q 2011. The vessel equipment includes analog geophysical and 2D HR digital seismic equipment. Polarcus Ltd. continues to add to its vessel fleet with delivery in 1Q 2011 of the Samur. The vessel is expected to be at work for the first time this month. The Alima began sea trials early this year and delivery is imminent. Polarcus has an option on an eightstreamer vessel to exercise in 2Q 2011. Spectrum joins the list for the first time this year with delivery of the GGS Atlantic for long-offset 2D and small footprint 3D. To meet the objectives of its management plan, CGGVeritas has simplified its organization to move closer to its clients and to focus on operations and technology differentiation. The new CGGVeritas organization is based around five divisions, Equipment, Marine, Land, Processing Imaging & Reservoir, Multi-Client, and a global Sales, Marketing and Geomarket network. The equipment initiative is to further advance Sercel through innovation, increased research and development, and expanded manufacturing knowhow. The Marine plan focuses on a new series of initiatives to better use its maritime assets. The plan focuses on repositioning and upgrade of the fleet to provide the most advanced seismic technology where the market wants it. It also includes progressing BroadSeis in the market. To continue to strengthen its data library CGGVeritas aims at a better geographic balance of its multi-client investments. On the business side, more consolidation is not out of the question. Spectrum USA sets the stage when it says it is looking for signs of consistency in the acquisition market. Right now, it seems the M&A business as nervous and affected by other tertiary indices more than seen in the past. Spectrum, as are other seismic companies, actively pursues all appropriate acquisition projects.
36 Offshore March 2011 • www.offshore-mag.com
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An ocean of welding and cutting solutions.
MECHANIZED CUTTING
WELDING AUTOMATION
SEISMIC CERTIFIED FILLER METALS
At ESAB, we have everything you need for manufacturing and maintaining offshore drilling platforms. Our mechanized cutting and automated welding systems maximize your productivity. Our welding equipment withstands the harshest of outdoor conditions. Our line of Seismic Certified filler metals is designed to meet the needs of structural stability. And our experts will make sure you have the right products for your project. So whether you’re involved in offshore oil or gas production, choose ESAB for powerful solutions.
ESAB Welding & Cutting Products / esabna.com / 1.800.ESAB.123
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GEOLOGY & GEOPHYSICS
AF, MID E, FAR E
Maximum towable footprint (# cables x length (m) x width (m))
Primary region
Yes
Source array configuration as rigged (# arrays x capacity)
Vessel availability (Yes, No, or Exclusive contract)
Streamer configuration (# streamers x # channels)
Total beam (m)
Total length (m)
Vessel name
Year rigged or converted
Worldwide Seismic Vessel Survey
BGP, 5th Floor, Building E5C West, 3rd Street; TEDA, Tainjin 300457, P.R.China BGP Challenger BGP Explorer BGP Pioneer BGP Prospector Dong Fang Kan Tan No. 2 (BGP Researcher) Dong Fang Kan Tan No. 1 (BGP Surveyor)
2009 2010 2006 2011 2007
55 64 83.7 100 65.8
13.8 16 19.5 24 13.8
1 x 1,200 6 x 640 2 x 960 1 x 1,200
Yes
AF, MID E, FAR E
Yes
AF, MID E, FAR E
1 x 5,200 2 x 3,480 2 x 3,400 2 x 5,620 1 x 3,000
1 x 9,000
2007
65.8
13.8
2 x 480
Yes
AF, MID E, FAR E
2 x 3,400
Caspian Sea
2 x 790
6 x 8,000
2 x 6,000
Caspian Services Group, T. Aliyarbekov St. 9, 370005, Baku, Azerbaijan Caspian Kyra
1970
36
7
CGGVeritas, 1 Rue Leon, BP 32, 91301 Massy Cedex, France Oceanic Vega Alize Amadeus Oceanic Challenger Princess Symphony Venturer Viking Viking II Viking Vanquish Viking Vantage Viking Vision Voyager Bergen Surveyor Geowave Champion Geowave Commander Oceanic Endeavour Oceanic Phoenix Geowave Voyager
2010 1999 1999 2006 2001 2000 2007 2006 1999 2007 2002 2007 2006 1997/ 2006 2007 2006 2008 2007 2008
106 101 77 90 76 121 90 93 93 93 93 105 68 67 106.3 93,5 106.6 114 92.7
24 29 19 19 14 23 15 23,5 22 22 22 24 16 14.6 22.4 16.5 26.6 22.5 22
16 x 960 14 x 960 8 x 960 12 x 960 3 x 480 12 x 960 4 x 480 10 x 960 8 x 960 12 x 960 8 x 960 12 x 960 4 x 480 2 x 480 12 x 960 8 x 480 16 x 960 12 x 960 12 x 960
Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide
2 x 4480 2 x 4,840 2 x 4,960 2 x 5260 2 x 3,080 2 x 4,740 2 x 3,840 2 x 5,260 2 x 5,260 2 x 5,260 2 x 5,260 2 x 5,260 2 x 5,260 2x 4,400 2 x 3,500 2 x 3,500 2 x 3,500 2 x 3,500 2 x 3,500
20 x 8000 14 x 8000 8 x 6,000 12 x 8000 3 x 6000 12 x 8000 4 x 6000 10 x 8000 8 x 8000 12 x 8000 8 x 8000 12 x 8000 4 x 6000 2 x 6000 12 x 8000 8 x 6000 16 x 8000 12 x 8000 12 x 8000
3 x 360 4 x 360 2 x 480 2 x 240 6 x 480 8 x 480 4 x 480 2 x 360
Yes Yes Yes Yes Yes
China, Asia, CIS China, Asia, CIS China, Asia, CIS China, Asia, CIS China, Asia, CIS
Yes
China, Asia, CIS
2 x 2,490 2 x 3,000 4,075 2,040 2 x 3100 2 x 4,110 2 x 3,185 3,660
SEAL 1 x 960 4 x 1,440 SEAL 1 x 960
Contact Contact Contact
SE Asia / Worldwide SE Asia / Worldwide SE Asia / Worldwide
4 x 5,000 6 x 2,920 4 strings 2,940 higher on request
1 x 1,100 4 x 6,000 x 150 1 x 11,100
Shooting Vessel Shooting Vessel Shooting Vessel Shooting Vessel Node Handling Vessel Node Handling Vessel
Yes Yes Yes Yes Yes Yes
GoM North Sea Mexico GoM GoM North Sea
5,330 dual 5,330 dual 5,330 dual 5,330 dual Node Vessel Node Vessel
1200 - Nodes 1800 - Nodes
1 x 48, 1 x 96, 2 x 48, 4 x 8, 6 x 6 1 x 48, 1 x 96 1 x 48 1 x 48, 1 x 96
Yes Yes Yes Yes
GoM GoM GoM GoM
90-300 GI Guns 90-300 GI Guns 90-300 GI Guns 90-300 GI Guns
Yes Yes Yes Yes Yes Yes Yes Yes Yes
Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide
5,860 single source 4,320 dual source 4,320 dual source 4,500 dual source 5100 dual source 5,100 dual source 5,100 dual source 3,590 dual source 3,460 dual source
China Oilfield Services, Ltd., No.6 Dongzhimenwai Xiaojie Beijing 100027 P.R.C Bin Hai 511 Bin Hai 512 Bin Hai 517 Bin Hai 518 HYSY 718 HYSY719 Dong Fang Ming Zhu Nan Hai 502
1979 1979 1997 1995 2005 2008 1994 1980
81 79 60 50 78 80 79 66
13.4 13.4 15 12.5 18 18 16.5 11
Dalmorneftegeophysica (DMNG), 426, Mira Ave., Yuzhno-Sakhalinsk, 693004, Russia Akademik Fersman Orient Explorer Zephyr-I
2007 2011 2007
81.5 81.8 81.8
14.8 14.8 14.8
Fairfield Industries, 14100 Southwest Freeway, Sugar Land, Texas 77478, USA Fairfield Endeavor Fairfield New Venture Fairfield Challenger Fairfield Pursuit Carolyn Chouest C-Pacer
2001 2004 2005 2011 2010 2011
65 76 67 59 73 80
13.5 18 14 14 16 18
Fugro GeoServices, 200 Dulles Blvd., Lafayette, Louisiana USA Seis Surveyor Universal Surveyor Albuquerque Fugro Enterprise
1976/ 1985 1980 1982 Jun-05
45.7 37 40 52
11.6 9 10 12
Fugro-Geoteam AS, Hoffsveien 1 C, P.O. Box 490 Skøyen, N-0213, Oslo, Norway Geo Arctic Geo Atlantic Geo Barents Geo Caribbean Geo Caspian Geo Celtic Geo Coral Geo Natuna Geo Pacific
1988/1997/2006 2000/2006 2007 2008 2010 2007 2010 2007 1998/2003/2006
82 121 77 100 108 101 108 70 82
15 22 15 28 28 28 28 17 15
1 x 12,000 10 x 6.600 8 x 6,900 14 x 6,000 16 x 8,100 12 x 6,000 16 x 8,100 6 x 5,100 8 x 6,000
38 Offshore March 2011 • www.offshore-mag.com
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GEOLOGY & GEOPHYSICS
Technical capability
Final primary recording media (type or cartridge #)
Satellite transmission to shore (company used and transmission speed (baud ))
Full data
QC data
Nav data
Vertical cable
Ocean bottom cable
High density
Deepwater
Shallow transition zone
4C
3D x x x x
3592 3592 3592 3592 3592
Inmarsat VSAT Inmarsat C VSAT Inmarsat C,F VSAT VSAT
3592
VSAT
Seismic
Acquisition capability 2D x x x x x
Onboard processing
x x x x x
x
x
3590E x x x x x x x x x x x x x x x x x x x
x x x x x x x x x x x x x x x x x x x
x x x x x x x x x x x x x
x x x x x
x x x x x
>10 m >10 m >8 m >6 m
x
x
>10 m
x x x
x
x
x x
x x
x x
x x x x
x
x
x
x x
x x x x x
x x x x x x x x x
x
x x x x x x x x
x x x x x x x x x x x x x x x x x x x
x x x x x x x x x x x x x x x x x x x x x x x
x
x x x x x x x x x x x x x x x x x x x x x x
x
x x x x
x x x x x x x x x x x x x x x x x x x
x x x x x x x x x x x x x x x x x x x
x x x x
x x x x
3590 3590 3590 3590 3590, 3592 3590 E, 3592 3590, 3592 3590, 3592 3590, 3592
VSAT VSAT VSAT VSAT VSAT VSAT VSAT VSAT VSAT VSAT VSAT VSAT VSAT VSAT VSAT VSAT VSAT VSAT VSAT
x x
x x
3590 3590 3590 3590 3590 3590 3590 3590
x x x
x x x
x x x
3590 3590 3590
x x
x x
3590 3590 DLT DLT DLT DLT
M-Sat 4800 M-Sat 4800 M-Sat 4800 M-Sat 4800
3592//RAID 3592/RAID 3592/ RAID 3592 RAID 3592 RAID 3592/RAID 3592/RAID 3592/RAID 3592/RAID
VSAT SCPC VSAT SCPC VSAT SCPC VSAT SCPC VSAT SCPC VSAT SCPC VSAT SCPC VSAT SCPC VSAT SCPC
x
x x x
x x x
X
x x
x x
x x x x
x x x x
x x x x
x x x x
x x x x
x x x x x x x x x
x x x x x x x x
x x x x x x x x x
x x x x x x x x x
x x
3592 3590 E 3590 3590 3590 3590 3590 3590 3590
x x x x x x x x x
Inmarsat KU
VSAT VSAT VSAT
KU KU
www.offshore-mag.com • March 2011 Offshore 39
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GEOLOGY & GEOPHYSICS
Primary region
19
8 x 6,000 m
Yes
Worldwide
4,000 dual source
1 x 120 1 x 240 1 x 120 1 x 120 1 x 240
Yes Yes Yes Yes 2010
NWECS NWECS EAME NWECS
140 140/1,000 140 140 140/1,000
1 x 120
Yes
Far East, Worldwide
1 x 40, 1 x 80, 1 x 160
1 x 120 1 x 120 1 x 120 1 x 480 1 x 120 1 x 120 1 x 120 1 x 120
Yes Yes Yes Yes Yes Yes Yes Yes
Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide
2 x 160
3,000 channels
Yes Yes Yes
International International GoM, International
3,000 channels
Yes Yes Yes Yes Yes Yes Yes Yes
India, International India, International GoM, International GoM GoM GoM, International India, International India, International
Yes Yes Yes Yes Yes
India, International GoM India, International USA India, International
Maximum towable footprint (# cables x length (m) x width (m))
Vessel availability (Yes, No, or Exclusive contract)
92
Source array configuration as rigged (# arrays x capacity)
Streamer configuration (# streamers x # channels)
1991/2001/2007
Total beam (m)
Seisquest
Total length (m)
Vessel name
Year rigged or converted
Worldwide Seismic Vessel Survey
Fugro Survey Ltd., Denmore Rd, Bridge of Don, Aberdeen AB23 8JW, UK Fugro Mercator Fugro Meridian Geo Prospector Fugro Discovery Fugro Searcher
1979/1996 1982/1997 1970/1997 1997/2007 2010
73 72.5 72.6 70 65.2
11.6 13.8 11.8 12.6 14
Fugro Survey Pte Ltd, 32 Tuas West Road, Singapore 638387 Geo Surveyor
1981
58
10.5
Gardline, Endeavour House, Admiralty Rd., Great Yarmouth, Norfolk NR30 3NG UK Sea Explorer Ocean Endeavour Sea Proflier Sea Surveyor Sea Trident Ocean Seeker L’Espoir Tridens 1
1993/1994/2004 2004 1992 1998/1999 1984/1991/2006 1970/2000 1971/1996 1984/1991
58.8 64.4 65.7 64.4 57.9 80.7 67.5 57.9
11 11.4 11 11.4 10.2 13 10.6 10.2
2 x 160 1 x 160 up to 1,950 2 x 160 1 x 160 1 x 160 1 x 160
Global Geophysical Serevices, 3535 Briarpark Dr., Houston TX, USA DIB 1 DIB 2 Global Longhorn (recording vessel) Global Quest Global Vision James H. Scott Lori B Miss Ginger Ms. Cordelia Sea Diamond VIII Seapol One (recording vessel) Soha Folk Super Transporter Te Wera Tiny Tune Tuhawiki
2007 2007 2007
12.5 12.5 28.5
4.25 4.25 8
2007 2007 2005 2007 2006 2007 2007 2007
20 20 21 14.6 54.8 41.5 55 16.75
5.5 6.5 10.7 6 11.5 11.5 12 9
2007 2006 2007 2005 2007
55 33.5 16.5 11.5 15
12 8.5 4.9 3.7 4.2
OBC Cable OBC Cable OBC Cable
4 x 750
2 x 750
1 x 640
OBC Cable OBC Cable OBC Cable OBC Cable OBC Cable OBC Cable OBC Cable OBC Cable OBC Cable OBC Cable OBC Cable OBC Cable OBC Cable
GSI 400, 400 5th Ave. SW Calgary, Alberta, T2P 0L6, Canada GSI Admiral GSI Pacific
1998 1979/2005
89.6 56.3
19 12
4 x 480 1 x 480
Spec Spec
Americas Americas
2 x 3,930 1 x 4,410
4 x 6,000 x 300 1 x 8,000
12.8 12.4
1 x 648 1 x 648
Contract Contract
Arctic, Northern seas Arctic, Northern seas
1 x 3,410
1 x 8,100 1 x 8,100
14.2
4 x 2,560
Yes
Worldwide
2x 4,000
4 x 6,000 x 100
Yes
South America
2 x 1,500
3 x 3,000 x 200
Worlwide inc. Antarctic
2 x 355
Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide
2 x 4,130 2 x 4,130 2 x 4,130 2 x 4,130 2 x 4,130 2 x 4,130 2 x 4,130 2 x 4,130 2 x 4,130 2 x 4,130 2 x 4,130 2 x 4,130 2 x 4,130
Marine Arctic Geological Expedition (MAGE) Geolog Dmitriy Nalivkin Professor Kurentsov
1985 1976
71.7 68.9
NAUTIC Offshore AS, Dronningen 1, 0211 Oslo, Norway Neptune NAIAD
2008
66.3
Offshore Seismic Surveys, OSS, 13430 NW Freeway, Suite 800, Houston TX 77040 OSS Gulf Supplier
56.4
11.6
3 x 240
OGS Italy, Borgo Grotta Gigante 42c, P.O. Box 2011, 34016 Trieste, Italy OGS Explora
1997
71.9
12.8
1 x 96
18 16.3 17 16.5 22 39.6 39.6 39.6 39.6 39.6 40 40 19.2
6 x 960* 1 x 1296* 1 x 1296* 1 x 1296* 6 x 528 12 x 960* 10 x 960* 18 x 480 18 x 480 18 x 480 22 x 480 22 x 480 10 x 480
PGS Marine, Strandveien 4, 1326 Lysaker Norway Atlantic Explorer Falcon Explorer Beaufort Explorer Nordic Explorer Pacific Explorer Ramform Challenger Ramform Explorer Ramform Valiant Ramform Vanguard Ramform Viking Ramform Sovereign Ramform Sterling PGS Apollo
1994 1997 2005 1993 1994 1996 1995 1998 1999 1998 2008 2009 2010
91.5 81.2 84 82 91.5 86.6 82 86.6 86.6 86.6 102 102 106.8
Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
3.6 sq km
4.0 sq km 6.6 sq km 5.4 sq km 6.6 sq km 6.6 sq km 6.6 sq km 10.4 sq km 10.4 sq km 8.1 sqkm
Orogenic GeoExpro, Loyang Crescent, Loyang Offshore Supply Base, Block 217, SOPS Avenue, Box No. 5043, Singapore 508988 Genesis
2009
52
11
Asia Pacific
40 Offshore March 2011 • www.offshore-mag.com
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GEOLOGY & GEOPHYSICS
Technical capability
Nav data
QC data
Full data
Final primary recording media (type or cartridge #)
Satellite transmission to shore (company used and transmission speed (baud ))
x
x
x
x
x
3592/RAID
VSAT SCPC
x x x x x
x x x x x
x x x x x
x x x x x
x x x x x
Telenor Telenor Telenor Telenor Telenor
7 7 7 7 7
x
x
x
x
x
x
3490E
>10m
x
x
x
x
x
3490E
VSAT (256)
>10m >10m >10m >10m >10m >10m
x x x x x x
x x x x x x
x x x x x x
x x x x x x
x x x x x x
3490E 3490E 3490E 3490E 3490E 3490E
VSAT (256) VSAT (256) VSAT (128) VSAT (256) VSAT (128) Gardline 64k
x
x
Vertical cable
Ocean bottom cable
High density
x
Deepwater
x
Shallow transition zone
4C
Acquisition capability
Seismic
3D
2D x x x x x
Onboard processing
x x x x x x x x
x x
x x x
x x x
x x x
x x x
x x x
x x x
x x x
x x x
x x x x x x x x
x x x x x x x x
x x x x x x x x
x x x x x x x x
x x x x x x x x
x x x x x x x x
x x x x x x x x
x x x x x x x x
x x x x x
x x x x x
x x x x x
x x x x x
x x x x x
x x x x x
x x x x x
x x x x x
x x
x
x x
x x
x x
x x
x
x
x
x x
x x
x x
x
x
x
x
x
x x x x x x x x x x x x x x
x
?
x x x x x x x x x x x
? ? ? ? ? ? ? ? ? ? ?
x
x x
x x
x
x
x x x x x x x x x x x x x x
x
x x x x x x x x x x x x x
x x x
x x
3590
3590 3590
V-SAT V-SAT
x x
3590, 3592 3590, 3592
Iridium Open port Skansat CT TT-3020C Inmarsat-C Skanti “Scansat CT” Inmarsat Mini-M SP 2000M Inmarsat Fleet-77 “Thrane and Thrane AS”
x
3590, EHD, USB
VSAT
3590
V-SAT
x
x
x
3490E
64k
x x x x x x x x x x
x
x
3590 3590
x x x x x x x x x x
x x x x x x x x x x
56k 56k 56k 56k 56k 56k 56k 56k 56k 56k 56k 56k 56k
x
3590 3590 3590 3590 3590 3590 3590 3590 3590 3590
x
www.offshore-mag.com • March 2011 Offshore 41
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GEOLOGY & GEOPHYSICS
Maximum towable footprint (# cables x length (m) x width (m))
Primary region
2009 2010 2010 2010 2010 2012 2012
Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide
2 x 4,240 2 x 4,240 2 x 4,240 2 x 4,240 2 x 4,240 2 x 4,240 2 x 4,240
12 x 8,100 x 75 12 x 8,100 x 75 6 x 8,100 x 160 12 x 8,100 x 100 12 x 8,100 x 100 14 x 8,100 x 100 14 x 8,100 x 100
Yes Yes Yes
Worldwide Worldwide Worldwide
2x 3,000 2x 3,000 2x 3,000
4 x 5,000 x 100 4 x 6,000 x 100 N/A
Yes Yes Yes Yes
Worldwide Worldwide Worldwide Worldwide
3 x 1,340
6 x 6,000 6 x 6,000 12 x 6,000
Yes
Worldwide
PGS Yes PGS Fugro Geoteam Yes Yes Yes Yes Yes
Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide
1 x 4400 2 x 4400 2 X 5,260 (client selectable) 2 x 5,000 X 5,000 Bolt 2 X 5000 (client selectable)
Yes Yes Yes Yes Yes
Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide
4 x 4,258 6 x 7,874 6 x 6,444 4 x 3,000 4 x 3,800 2 x 2,280
1 x 8,000 4 x 5,000 x 450 2 x 4,000 x 100 1 x 4,000 1 x 6,000 2 x 6,000
Mar-11
Americas W.Africa
4530x3 5860x4
2x4500
Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide Worldwide
6 x 1,695 8 x 1,695 6 x 1,695 8 x 1,695 6 x 1,695 6 x 1,695 6 x 1,695 8 x 1,695 6 x 1,695 8 x 1,695 8 x 750 8 x 1,695 8 x 1,695 6 x 1,695 6 x 1,695 8 x 1,695 8 x 1695 8 x 1,695 6 x 1,695 6 x 1,695
8 x 6,000 x 700 12 x 8,000 x 1,100
Source array configuration as rigged (# arrays x capacity)
Vessel availability (Yes, No, or Exclusive contract)
Streamer configuration (# streamers x # channels)
Total beam (m)
Total length (m)
Vessel name
Year rigged or converted
Worldwide Seismic Vessel Survey
Polarcus, PO Box 283373, Dubai, United Arab Emirates Polarcus Nadia Polarcus Naila Polarcus Samur Polarcus Asima Polarcus Alima NB 1 NB 2
2009 2010 2010 2010 2010 2012 2012
88.8 88.8 84.2 92 92 92 92
19 19 17 21 21 21 21
REFLECT Geophysical Pte. Ltd., 8 Temasek Boulevard #17-01, Suntec Tower Three, Singapore 038988 Reflect Aries Orient Explorer Pacific Titan
1993/2010 1988/1995 1982/2010
70.1 81.8 64.5
18 14.8 18.5
4 x 960 4 x 960 N/A
RXT Reservoir Exploration Technologies Lysaker Torg 5 A, PO Box 104, 1325 Lysaker, Norway Ark Phil Beulah Chouest Bourbon Ocean Pearl Sanco Star Ramco Express Sara Maatje IX
2007 1982/1996 2004 2001 2008 2003 1994
70 60 64 108.6
16.8 14 17 18
cable vessel 980 channels cable vessel (combined source/cable vessel)
58
2 x 3,990
12.5
2 x 6,000 8 6-km VSO cables
Sea Bird Exploration Nedre Vollgate 3, P.O. Box 1302, Vika 0112 Oslo, Norway Aquila Explorer 2007 Geo Mariner 2001/2004 Harrier Explorer 2007 Hawk Explorer 2006 Hugin Explorer 2007/2008 Kondor Explorer (source only) 1984/1997 Munen Explorer 2007 Northern Explorer 1987/1998/2004 Osprey Explorer 2006
71 38.2 81 66 86 63.5 60 76 81
17.5 12.8 18.3 14.5 20 13.6 14 14 16
1 x 960 2 x 320 Source 1 x 960 Source 1 x 960 1 x 960 Source
2 x 5,000 2 X 1,700; 3 X 1,995
2 x 3,600 x 100
Sevmorneftegeofizika (SMNG), 17, Karl Marx St., 183025 Murmansk, Russia Akademik Lazarev 1987/96 Akademik Nemchinov 1988/97 Akademik Shatskiy 1986/91 Iskatel - 5 1989/97 Professor Polshkov 1984/94 Professor Rjabinkin 1989/1995/2007
81.8 84 83.5 49.2 71.6 49.9
14.8 14.8 14.8 18.2 12.8 10.5
1 x 960 4 x 480 1 x 960 1 x 480 1 x 480 2 x 800
Shanghai Offshore Petroleum Bureau CNSPC, 1225 Shangcheng Road Pu Dong, Shanghai Discoverer
1980
72
16.4
120 ch
Spectrum USA, 16225 Park Ten Place, Suite 300, Houston, 77084 GGS Atlantic
2006/7
52
12
2x364 or 1x804
WesternGeco, Schlumberger House, Buckingham Gate, Gatwick Airport, West Sussex, RH6 0NZ UK Conti Geco Bluefin Geco Diamond Geco Eagle Geco Emerald Geco Searcher Geco Snapper Geco Tau Geco Topaz Geco Triton Gilavar Ocean Odyssey Western Delta Western Monarch Western Neptune Western Patriot Western Pride Western Regent Western Trident Western Spirit WG Columbus WG Magellan
2005 1980 1993 1999 1992 1983 1997 1992 1992 1970 1981 2005 2007 1991 1999 1993 1991 1992 1999 1993 2009 2009
65 80 81 95 81 92 67 77 81 79 85 72 61 93 93 78 73 94 93 78 88 88
17 19 19 37 19 20 18 19 19 21 19 16 12 24 24 17 20 24 23 22 21 21
2 x 3,200 2 x 3,200 8 x 480 12 x 640
10 x 720 6 x 480
12 x 2,560 12 x 2,560 8 x 480 10 x 1,920 12 x 2,650 10 x 560 10 x 1,920 12 x 3,200 12 x 3,200
10 x 9,000 x 900 6 x 6,000 x 500
12 x 8,000 x 1,100 12 x 8,000 x 1,100 8 x 6,000 x 700 10 x 6,000 x 900 12 x 8,000 x 1,100 10 x 7,000 x 900 10 x 6,00 x 700 12 x 10,000 x 1,100 12 x 10,000 x 1,100
Q refers to Q-Technology
42 Offshore March 2011 • www.offshore-mag.com
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GEOLOGY & GEOPHYSICS
Technical capability
x x x x x x x
x x x x x x x
x x x
x x x
x x x
x x x
x x x
x x x
x x x
x x x
x x x
x
x
x x
x x
x
x x
x x x x x
x x x
x x
x x
x x x x x x x x x
x x x x x x x x x
x
x
x
VSAT VSAT VSAT
3590 or EHD 3590 or EHD 3590 or EHD
VSAT VSAT
x x
x x
x x
x x
x x
3590
x x x
x x x
3590 3590 3590
64k 64k 64k
x
x x
x x
3590 3490E
64k 9.6k
x
x
x
Yes
Yes
HD & 3590
SEVSAT Ship equip
3590 3592 3590 3590 3590 3590 3590 3590 3590 3592 3592 3590 3590 3592 3592 3592 3592 3592 3592 3592 3592 3592
VSAT 128K+ VSAT 128K+ VSAT 128K+ VSAT 128K+ VSAT 128K+ VSAT 128K+ VSAT 128K+ VSAT 128K+ VSAT 128K+ VSAT 128K+ VSAT 128K+ VSAT 128K+ VSAT 128K+ VSAT 128K+ VSAT 128K+ VSAT 128K+ VSAT 128K+ VSAT 128K+ VSAT 128K+ VSAT 128K+ VSAT 128K+ VSAT 128K+
x x
3590
x
x x x x x x
x x x
x x x
x x
x
x
YesAs Gunboatinto 15m
x x x
x
3590, EHD, USB 3590, EHD, USB
x x
x x x x x x x x
VSAT VSAT VSAT VSAT VSAT VSAT VSAT
x
x x
x
Yes
x x
x x x x
x
x
x x x x x x x
x
x
x x x x x x
x x
x x x x x x x
Final primary recording media (type or cartridge #)
x x x x x x x
Full data
x x x x x x x
QC data
Nav data
Vertical cable
Ocean bottom cable
High density
4C
Deepwater
3D
Shallow transition zone
2D
Acquisition capability
Seismic
x x x x x x x
x x
Satellite transmission to shore (company used and transmission speed (baud ))
Onboard processing
Yes
No
As Gunboat
No
Yes
x x x x x x x x x x x x x x x x x x x x x x
x x x x
x x
x x x x x x x x x x x x x x x x x x x x
x x x x x x x x x x x x x x x x x x x x x x
x x x x Q Q x Q Q x Q Q Q
x x x
x x
x x x x x x x x x
Inmarsat C NorSat C Inmarsat C Inmarsat C Inmarsat C KU Band Inmarsat C NorSat C Inmarsat C
Full OBP Full OBP Full OBP
Full OBP Full OBP
Full OBP Full OBP Full OBP Full OBP Full OBP Full OBP Full OBP Full OBP Full OBP
www.offshore-mag.com • March 2011 Offshore 43
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GEOLOGY & GEOPHYSICS
Interpreting site survey data in a 3D world Integrating high frequency and normal frequency 3D seismic data vital for more accurate shallow hazard interpretation Bob Van Nieuwenhuise Manuel Perez Mark Langer Michael Feng
Paradigm
P
roperly interpreting site survey data prior to deploying an offshore oil rig always has been crucial to drilling exploration or production wells. Site surveys can use multibeam, side-scan sonar, magnetometer surveys, and sparker or chirp surveys, just to name a few common techniques. Most of these data are interpreted in analog form to provide site engineers information they need (Fish & Carr, 1990). Over the last 20 years computers tremendously improved the ability of the site survey engineer/geophysicist to interpret and to present data in a useful digital display form. Rarely, however, are these data loaded into and integrated with modern 3D seismic data. Integrating these two unique datasets (high frequency: 22.5 KHz sparker and normal frequency: 8-125 Hz 3D seismic data), can more completely interpret shallow horizons. This integration enables a look at deeper features in the shallow portions of the normal frequency 3D seismic data, tied together with the shallow high-frequency features just below the water bottom (at the first 60 m or 197 ft, or so). This is crucial to detail gas chimney and over-pressured shallow ground water problems that cannot be defined clearly with a single seismic data set.
Study location showing the mini sparker lines in red and enclosed within the green lines.
Geological hazard identification Many innovative software tools improve the usefulness of 2D and 3D seismic data generally collected at 12-250 Hz. While these data are excellent for deep geological investigations, the low frequency data does not always provide the best resolution at the ocean bottom. With the recent concern of geological hazards in deeper water, Paradigm decided to test its ability to process and display high frequency sparker seismic data using its seismic processing and interpretation tools. Paradigm’s Echos processing software, a component of the Rock and Fluid Canvas (RFC) 2009 synchronized software release, improves the S/N ratio of the mini-sparker data and the Paradigm SeisEarth interpretation displays those results. Public domain mini-sparker data were obtained from the USGS. The data were acquired in 2008 offshore Port Hueneme, California. This dataset spans the Hueneme Submarine Canyon through which the sediments from the lower Santa Clara River flow into the Santa Monica basin. The data were acquired to determine the tsunamigenic potential of the sediments at the mouth of Hueneme Canyon. The Hueneme Canyon has nearly vertical outcrops composed of young sedimentary sequences. This indicates massive erosion during the latest Holocene. Because the canyon’s side-walls are over-steepened and contain unconsolidated deposits that accumulated rapidly, the potential for an earthquake-induced tsunami is high.
Actual lines tested.
The canyon is near the Los Angeles area so this risk associated with local faulting needs to be assessed (Normark, et. al., 2007).
Data acquisition The USGS acquired these data using a SIG 2 Mille mini-sparker with a 500 joule high voltage electrical discharge to create a seismic source with more power and lower frequency than a typical chirp
44 Offshore March 2011 • www.offshore-mag.com
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PASSIONATE ABOUT SEISMIC All Polarcus vessels are equipped with the latest high-end seismic acquisition, navigation and positioning technologies. Taken together, the vessels and the data acquisition systems provide complete flexibility for Polarcus to meet the entire range of possible seismic survey objectives using marine towed streamer techniques. Find out more, visit www.polarcus.com
TM
Scan the QR-code with your mobile phone and read more about our GREEN agenda
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GEOLOGY & GEOPHYSICS
The left panel shows the data before processing. Right panel shows the improvement in the S/N ratio. Time increment on both panels is 0.01 sec.
system (21 KHz). Depending on water depth, the source fired one to four times per second. At the survey speed of around 4 knots, data Lines HC-20, 17, and 15 (from left-to-right) Intersect line HC-12. The intertraces are created every ½ to 2 m (1.6 to 6.5 ft) along the ship track. sections noted with an arrow show no mistie in all three cases. Line HC-17 ranges from 0-740 msec. These data were recorded every 62 μsec or 16 KHz using a 15-m (49-ft) long hydrophone streamer. The data processed had variable as the first three lines intersecting HC-12 in the shallow, steep slope record lengths from 290 to 990 ms, depending on water depth. Dif- and deepwater positions, thereby covering all expected scenarios. ferential GPS fixes were recorded in the SEG-Y trace headers in Note the line intersections with line HC-12. If we apply an opacity arc seconds. Data were recorded digitally in standard SEG-Y 32-bit function to lines HC -15 and HC-17, and zoom in on the intersections, floating point format using a Triton SBL system that merged the we see an excellent tie between those two lines with the ENE trendGPS and seismic data. For this study, the data are positioned using ing line HC-12. The three lines show intersection misties of less than relative locations. The data were collected in profiles either parallel 1 msec at the water bottom. This is why the 62 μsec data are used. or perpendicular to the coastline on a roughly 1.2 km (0.75 mi) grid.
Future work Data enhancement Some fundamental processing was performed on the min-sparker data to appreciate its resolution of +/– 2 m (6.5 ft). This need is apparent when looking at the data before and after the processing to improve the S/N ratio. The noise trains seen initially make these data almost impossible to use in the SeisEarth 3D Canvas window. The simple processing performed using the Echos processing software followed this basic work flow: • DSIN – Data load • DBMUTE – Simple mute of the first arrivals of the water bottom • FILTER – Band pass filter suppressing high bias seen as vertical line noise in the record • AGC – Automatic gain control with a varying 200-440 ms window, depending on data length • DBMUTE – Reinstate initial mute • RUNMIX – 1-3-1 weighted boxcar filter • FXDECON – FX domain Spectral Deconvolution using a 160 ms lag gap operator • FKPOWER – FK sample power 1.1 over 200 ms to enhance the S/N ratio • Final DBMUTE – Reinstate initial mute • DSOUT – Output the final data set. All the inherent noise and chatter typically recorded with minisparker data is reduced. These results show that these data were acquired extremely well and will be useful in a hazard survey.
Loading data The processed mini-sparker seismic lines were loaded with a data sample rate of 62 μsec, rather than the typical 2 or 4 msec for 2D and 3D seismic data. Lines HC-12, HC-15, HC-17, and HC-20 are shown
A basic processing workflow on these data followed by loading into SeisEarth 3D Canvas enables a view of the 62 μsec data in a standard 3D seismic data package designed to view 2-4 msec data. The added advantage is to view both data sets together in 3D and effectively do hazard surveys using both types of seismic data. Multiples in these data severely hampered the use of these types of data with depth. It is our intent to further design filtering and/ or muting methods to remove these noise trains to further improve the data utility. One major problem in doing this with Chirp or minisparker data is that the data are not acquired as gathers. We simply acquire one trace per record. Therefore, no surface consistent methodology is possible (as there is no offset). Hence, the removal of multiples will require a more challenging data processing workflow. Another item is the misties. Even though they were small (< 1 msec), these can be removed by loading the data at 62 μsec. In Echos, HEADER MATH can remove the misties line-by-line at any intersecting point. In summary, 62 μsec data can be quickly and easily pre-processed and loaded into the SeisEarth 3D Canvas. This tool can co-render these data along with regular 8-250 Hz 2D and 3D seismic data. References Fish, John P. and H. Arnold Carr, 1990, Sound Underwater Images: A Guide to the interpretation of Side-scan sonar data, L. Cape Pub., Cataumut, p. 189. Normark, W.R., D.J.W. Piper, and R. Sliter, 2006, Sea-level and tectonic control of middle to late Pleistocene turbidite systems in Santa Monica Basin, offshore California: Sedimentology, v. 53, p. 867-897. Ray W. Sliter, Peter J. Triezenberg, Patrick E. Hart, Amy E. Draut, William R. Normark, and James E. Conrad, 2008, High-Resolution Chirp and Mini-Sparker Seismic-Reflection Data From the Southern California Continental Shelf — Gaviota to Mugu Canyon, USGS Open File Report 2008-1246, p. 4.
46 Offshore March 2011 • www.offshore-mag.com
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BP will survive its oil spill disaster. Will you?
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DRILLING & COMPLETION
Bottom line benefits justify deepwater IWS Installing intelligent well systems in multi-zone completions pays off despite challenges Stefano di Vincenzo
Eni E&P Michele Arena
Schlumberger Three possible scenarios, a Base Case (left) and two alternatives, (center and right) were postulated. (Illustrations courtesy Schlumberger) [SOURCE: SPE 133080 Figure 2].
D
eepwater development presents many challenges, from drilling to completion to production. This is the story of an extremely complex set of challenges that were addressed successfully offshore Nigeria, returning significant benefits to the operator in the form of an increase in net present value of 15% and an increase in overall reservoir recovery factor of 6%.
Setting the scene About 37 miles (60 km) offshore Nigeria, in about 2,132 ft (650 m) of water, several turbidite sand lobes located at different levels constitute a high-permeability reservoir with numerous mud-filled channels providing potential isolating barriers. The reservoir consists of a northern lobe and a southern lobe, subdivided in three levels, A, B, and C. A total of eight wells were drilled initially, all targeting level A. Wells 1, 2, 3, 5 and 6 terminated in the northern lobe and wells 4 and 7 terminated in the southern lobe. In 2005, an eighth well was drilled that, while targeting level A, also penetrated levels B and C, confirming the complex nature of the reservoir and calling for a reassessment of completion options. The team was faced with several challenges, both technical and legal. Under Nigerian law, each zone in a multi-zone completion must be isolated and monitored. On the technical side, sand management and crossflow were the major issues. After appropriate engineering study, the following objectives and challenges were identified: • Well control—three fully separated, monitored and controlled zones were to be deployed in a single completion run. • Equipment clearance—very tight clearances between upper and lower completion units and between tubulars were expected. • Zonal allocation—Downhole zonal allocation must comply with Nigerian law.
• Zonal isolation—high integrity isolation was required for selective isolation and control. • Well position—water depth required a dynamically positioned rig. The first step was to see if a single-well intelligent well systems (IWS) completion was technically possible, given the constraints posed by the reservoir conditions, the dimensions of available completion equipment and compliance with the law. If the first step was deemed to be feasible, the second step would compare different alternatives to evaluate economics.
Attention to detail facilitates decision During the evaluation phase, and before the final completion decision was taken, the team was faced with a complex set of economic and technical alternatives. Initially, the plan was to consider only existing technologies applied to three single-zone horizontal open hole gravel pack completions and dualzone cased hole gravel pack completions. As third option there was the new technologies applied to a single deviated well completed with triple IWS and frac pack for sand management. The well would produce commingled from all three isolated levels, with precise downhole monitoring of each level to comply with Nigerian law. After some study, the Base Case was removed from consideration because of problems experienced in previous wells with open hole gravel pack completions. Thus, alternatives 1 and 2 were all that remained. To make the project profitable in the long term, a gas injector completion was added. Accordingly, the final decision was between the following alternative scenarios: Alternative No. 1 (four wells) • One single producer (level B) • One dual zone producer with IWS (levels A and C)
• One dual zone producer with IWS (levels A and B) • One triple zone gas injector (levels A, B, and C commingled). Alternative No. 2 (three wells) • One triple zone producer with IWS (levels A, B, and C) • One dual zone producer with IWS (levels A and B) • One triple zone gas injector with IWS (levels A, B, and C commingled).
First step – Completion design feasibility Working as a team to ensure engineering and operational compatibility, operator and Schlumberger engineers developed a triple upper zone IWS completion with a lower zone stacked packed gravel pack completion. The lower completion consisted of three independent stacked packed gravel pack assemblies, each with an isolation packer to separate them from each other, a gravel pack circulation sleeve to allow zonal fluid returns during pack installation, and 7-in. wire-wrapped screens to isolate the gravel in the annulus. The upper completion consists of two 2 7/8-in. flow-control valves with pressure gauges. These are run inside the lower completion to control flow from the middle and lower zones. In addition, a 3 ½-in. flowcontrol valve and gauges are run above the lower completion to control production from the upper zone.
Second step – Decision factors weighed The final decision boiled down to one of implementation cost, or CAPEX, followed by the net present value of expected incremental production. This, too, had its complexities. Capex for a triple zone IWS cost 35% more than that of a dual zone IWS. In addition, capex for the contract engineering required to integrate sand management media amounted
48 Offshore March 2011 • www.offshore-mag.com
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DRILLING & COMPLETION
A triple upper zone IWS completion (left) and a stacked packed gravel pack lower zone completion (right) were designed. [SOURCE: SPE 133080 Figure 1].
Safety valve
Cement and formation behind perforations
9.625” productioncasing ID drift - 8.525”
9 5/8” Production packer
3 1/2” Row control valve
2_’ flow control valvesmultistep fully hydraulic
Flat pack for Intelligent Completion
9 5/8” Gravel pack packer Gravel pack assembly 7” Wire wrapped screens
Blast joint
9 5/8” Gravel pack packer
6” Multi-ported seal assembly 2 7/8” Down hole gauges 2 7/8” Flow control valve
9 5/8” Gravel pack packer
7” wire wrapped screens for Sand Control assembly Clearance CSG/Screens = 0.7625”
Gravel pack assembly
7” Wire wrapped screens
Electrical cable
Blast joint 6” Multi-ported seal assembly
Gravel pack assembly 2 7/8” Down hole gauges 2 7/8” Flow control valve 7” Wire wrapped screens
to a 15% increase. Finally, well capex required to install the triple zone completion added 23% to the overall cost. On the other hand, expected incremental production for the triple zone completion versus the dual zone completion was more than 1 MMbbl. When the total field development solution was taken into account, alternative No. 2 offered some very attractive benefits. Drilling one less well would save about $24 million. A complete subsea facility equipment and installation cost for one well would be saved. Production from level C would be controlled with concurrent ability to exercise conformance and depletion control. It should be noted that these benefits assumed the IWS would perform reliably. The main advantages of the option chosen are as follow: • Reduced capex—One well to drill and complete, versus the other options. • Increased production—Additional production was expected due to gas lifting from level A helping to lift production from levels B and C. • Zonal control—Provides the ability to react to premature water breakthrough or early depletion of a zone.
Alternative 2 implementation Seven-inch sand screens were selected over 6 5/8-in. screens despite the fact that clearance between the 9 5/8-in. casing and the screens was less than 1 in. This was because the added strength of the larger screens was deemed significant during run-in and later when the well was put on production. All flow-control valves were checked to ensure their operating range accommodated the expected production profiles for each valve aperture position and achieved optimum drawdown. A 6-in. multi-ported bonded seal assembly isolated the two lower zones while allowing passage of hydraulic and electrical
Radial clearances, while tight, were adequate to allow effective distribution of the gravel pack while ensuring sufficient clearance for control lines. [SOURCE: SPE 133080 Figure 7].
control and telemetry lines for the flow-control valve and gauges. To protect the control lines, grooved blast joints were positioned opposite each perforated interval. These featured self-aligning connections that aligned the grooves within 0.01-in. (0.25 mm) when the connections were made up so the lines were protected across several joints. Radial clearance between flow-control valves and the sand screens was 0.851-in. considered sufficient to prevent damage to the control lines and prevent swabbing during upper completion run-in. This also allowed circulation during stab-in. Flow path through the completion shows how each zone’s production makes its way through the completion. Each zone’s contribution is controlled and monitored using the IWS control-valves and gauges before it is commingled for its ultimate journey to the surface production facility. To ensure long-term reliability, engineers were careful to avoid placing flow-control valves opposite perforations. This affected completion equipment length for each zone, which was 15-ft (4.5 m) for level A, 43-ft (13 m) for level B and 34-ft (10.5 m) for level C. The interval distance between layers was 102-ft (31 m) between the bottom of level A and the top of level B, and 105-ft (32 m) from the bottom of level B to the top of level C. The well’s maximum deviation of 32.5° with a maximum dogleg severity of 3.1°/100-ft was considered adequate to avoid problems during run-in or gravel packing operations, or subsequently during the life of the reservoir.
Results exceed expectations Planned versus actual costs for alternative No. 2 were encouraging. For the well drilled with the triple IWS completion and the well drilled with the dual IWS completion, IWS material capex came in as planned at 35%; IWS service capex was less than 12.5% versus the plan of 15%; and the overall well capex difference was reduced to less than 6% against the planned 23%. On the production side, cumulative oil produced reached normally expected levels seven months ahead of time and six months ahead of the most optimistic expectations. The AFE was re-paid within 15 months of production; net present value of the well increased by 15% and reservoir recovery factor was calculated to have risen from 24.7% to 31.05%.
Flow diagram illustrates how each zone flows through the completion to its ultimate commingling at the top. [SOURCE: SPE 133080 Figure 8].
www.offshore-mag.com • March 2011 Offshore 49
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E N G I N E E R I N G , C O N S T R U C T I O N , & I N S TA L L AT I O N
Developing testing criteria for long-lifespan ropes
Dave Rowley
Offspring International
Deepwater fiber rope and connector test machine reveals the impact of new materials on mechanical and fatigue behaviour
S
ynthetic fiber rope is widely accepted for moorings beyond 1,000 m (3,281 ft) water depth. Yet there are few machines designed to test fiber rope, and none dedicated specifically to deepwater ropes. This, allied to the high cost of testing, has led to the paucity of authoritative data on rope properties for different fiber types and rope constructions. Lankhorst Ropes Offshore Division has developed a deepwater fiber rope and connector test machine designed to reveal the impact of new materials and rope constructions on mechanical and fatigue behaviour. The machine is at its fiber rope production facility in Portugal. The purpose of a deepwater mooring system is to hold the production unit on station. However, this imposes fluctuating fiber elongation and tension-tension fatigue loads on the mooring lines. Longterm (more than 25 years) deepwater moorings will be exposed to millions of small waves which translate into more than 50 million cyclic loads. This continuous cycling has the potential to cause real fatigue damage, although the steel components in a mooring system actually suffer from fatigue damage more than the fiber rope. Performance of fiber rope is more difficult to predict than mooring chain or wire rope performance. Fiber rope is visco-elastic, so its properties are history and time dependent. For example, the load placed on the rope, and the time since the load was applied, influence the rope’s stiffness characteristics. The rope will recover some of its elasticity after the load is removed, but the degree of recovery is time dependent. These variable stiffness characteristics lead some people to regard fiber rope mooring system design as a “black art.”
Rope test variables A test rope comprises a length of rope with an eye spliced at each end, which are attached to pins. Between the splices is a free length of rope. Test results from the full test sample length (i.e., pin to pin data) is of little use, as the test sample may comprise 5 m (16.4 ft) x soft eyes, 5 m x splice, and 2 m x free rope; whereas the tether in service may comprise 5 m x soft eyes, 5 m x splice, and 1,990 m (6,529 ft) x free rope, so the pin-to-pin data will be severely distorted when extrapolated. Very accurate extensometers must, therefore, be attached to the free rope. The longer the free rope section on the test sample, the further the extensometer can be positioned away from the tail of the splice. Any transitional disturbance effects, plus the longer the extensometer can be, minimize the extrapolation factor. To accept a longer test sample requires longer test bed length. More importantly, The test machine also allows users to simulate storm and other scenarios.
The deepwater fiber rope and connector test machine is designed to reveal the impact of new materials on rope construction.
the longer sample will stretch more. A 10% extension or stroke on a 10-m (32.8-ft) sample is only 1 m (3.28 ft), but on a 20-m (65.6-ft) sample is 2 m (6.5 ft). To facilitate longer samples, the Lankhorst test machine uses longer hydraulic rams. When simulating wave frequency loadings, the cycle speed is constant regardless of sample length, so if a 10-m (33-ft) test sample is used, the ram will move 1 m in 15 seconds, while the longer sample will need to move 2 m in 15 sec. to have the same effect on the rope. This means the test machine needs higher power to achieve the dynamics of moving the hydraulic ram through this distance. The Lankhorst test machine can accept 20-m samples, has a primary cylinder rated at 1,200 metric tons (1,323 tons) with a 3-m (9.8-ft) stroke, and a secondary cylinder of 1.5 m (4.9 ft) length coupled to a 350-kW power pack. Understanding a deepwater synthetic rope’s stiffness and degree of stretch under maximum load are essential to predict in-service/ life performance. The ability to accurately control peak loading during rope testing is, therefore, critical and more difficult than apparent at first glance. The elasticity of the rope is such that at target load it will continually creep against time. Maintaining the target load means that the control system has to continually self-correct – 2% variance is typical for existing fiber and wire rope test machines, while the Lankhorst machine control system maintains target loads within 10kN. This makes a significant difference when assessing the accuracy of test data. Recently, the rope test machine received its Certificate of Calibration from the National Physical Laboratory (UK). When analyzed in accordance with ISO 7500-1:2004, test results for the calibration are within the Class 0.5 classification limits, compared with Class 1.0 limits for most rope test machines. Deepwater ropes are routinely loaded to approx. 40% of MBL to pre-stretch the rope during installation, so that “out of the box” storm offsets are minimized. More accurate information on the degree of pre-loading required will avoid the high cost and safety issues surrounding excessive pre-loading during offshore installation.
50 Offshore March 2011 • www.offshore-mag.com
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conference & exhibition 11-13 october 2011 hilton riverside | new orleans | usa
30 years of covering the
deep issues 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. Showcasing the most innovative technologies designed to withstand hostile and ultra deepwater environments. Discussing the specific challenges of the region and the latest groundbreaking solutions. 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. For more information on exhibiting and sponsorship please contact:
Owned And Produced By:
Presented By:
Netherlands, Northern Europe & Middle East Jane Bailey Sales Manager T: +44 (0) 1992 656 651 E:
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Deep Offshore Technology ® www.deepoffshoretechnology.com
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P R O D U C T I O N O P E R AT I O N S
Using delayed-action filter cake breaker helps maximize production In situ acid formation is the key Eric Davidson
Halliburton
A
chieving optimal production or injection from a well involves careful planning before drilling the reservoir. For example, the drill-in fluid needs to be properly designed, the drilling operation properly run with adequate control of fluid properties, and the drill-in fluid should be formulated, as much as possible, with acid-soluble solid bridging particles and polymers. Completion procedures call for similar care and attention and, finally, good removal of the filter cake. Various techniques have been developed to attack filter cakes. Probably the most conventional and oldest method is the use of live acid, usually hydrochloric but sometimes organic acids. Obviously, such chemicals present special demands for health, safety, and environment plus require special acid-resistant equipment. There also are questions about effectiveness. Acid is at its most active at the point where it is introduced, and it is likely that a leak-off zone will be established at that point, with the result that the entire length of the zone will not be treated. Other techniques involving complexing chemicals and starch enzymes also are at their most active immediately on introduction to the zone to be treated. Complexing chemicals allow no delayed action and may cause “hot spots.” Starch enzymes only remove the starch, leaving acid-soluble solids in place. The approach to this problem was to develop a family of chemicals that are neutral when introduced into the well, but react with the water in the brine to release a strong organic acid in situ. There is a delay while sufficient acid is released to attack the filter cake, providing ample time to withdraw any coiled tubing and wash pipes or drill strings used to introduce the fluid. If desired, there also is time to activate a downhole isolation valve to shut off the treated section from wellbore hydrostatic pressure. In developing this product range, we avoided acid precursors that would yield very ineffective acids such as acetic, formic, and other strong organic acids; this yielded much better results. There are two main precursors in the product list — each represents patented technology and involves a different acid that covers a distinct temperature range. For example: Product N- FLOW 325 N -FLOW 40
Property breaker breaker
From ° 25° C (75° F) 90/95° C (195/205° F)
To ° 90/95° C (195/205° F) 150° C (300° F)
Both of these products are liquids and both yield organic acids that are considerably stronger than acetic acid and can dissolve calcium carbonate and polymer. The reaction is purely chemical. Reac-
N-FLOW filter cake breaker versus acetic acid.
Examples COOL WATER INJECTION WELL Conditions included: • BHT: 32° C (~90° F) • Permeability: 3-7 darcy • Section length: ~ 4,000 ft • History: Standard drill in fluid BARADRIL- N water-based mud (brine/polymer/sized marble) • Previous cleanup procedures (acid, complexing agent, etc.) all yielded similar results. Clean up: • System used: N FLOW 325 breaker • 15% displaced to inside a standalone screen Outcome: • Onset of losses delayed to more than 10 hours after spotting of the breaker • Expected injectivity index, based on section length and previous history: 60 b/d/psi. • Achieved injectivity index: 150 b/d/psi The injection rate via this well was choked back to 70,000 b/d, and this was estimated to provide pressure support equivalent to an additional 15,000 b/d produced oil (i.e. additional oil over expectation). The operator considered this a success.
tion of the precursor with water in the brine releases the acid. There are no enzymes involved in the generation of the acid. One objective was to avoid use of enzymes in view of potential temperature limitations and difficulties associated with limited shelf life. Filter cake samples demonstrate the relative effectiveness of this new breaker compared to weaker organic acid. In each case, a filter cake made from the same drill-in fluid was exposed to the acid treatments at the same temperature and for the same length of time. The concentration of the new formula breaker to be used in an application usually is calculated on the basis of the amount of acid-
52 Offshore March 2011 • www.offshore-mag.com
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From the outset, it was clear that some aspects remained the same. It is recommended for as many of the fluid components as possible to be acid soluble. In particular, bridging solids in the cake should be sized calcium carbonate, and preferably marble. The major challenge presented by oil-based mud filter cakes is to destroy the hydrophobic cake with a water-based treatment. It is known that treating an oil-based mud with acid severely thickens the fluid, and a simi-
lar effect is observed when oil-based filter cake is contacted by acid. Clearly, the treatment that works with water-based filter cake is not necessarily adequate for an oil-based cake. A superficially attractive concept would be to treat the cake with powerful surfactants to reverse the wet-ability of the solids in the cake before applying the acid. Such an approach can have severe limitations. If the surfactant breaks the oily part of the cake
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(Above) Oil-based filter cake after acid treatment. (Below) Oil-based filter cake after treatment with N-FLOW breaker plus BDF-443 surfactant.
Duraband NC Hardbanding Alloy ‘
soluble material believed to be in the filter cake to be treated, and is mainly a function of the hole diameter. For example, an 8.5-in. hole usually uses 10% (vol/vol). In the field, preparation of the breaker pill is simple. The carrier brine is selected on the basis of density. A volume of brine appropriate for the size of the open hole is placed in a pit or tank and, if desired, an appropriate quantity of corrosion inhibitor may be added. Corrosion is not a major issue in many cases. As calcium carbonate reacts with an organic acid, the pH of the reaction mixture is self-buffering at a moderate value of pH 4; in any case, the period of contact between the released acid and the downhole steelwork is usually is a few days at most. So, unless the temperature is high, no corrosion protection may be needed. The final stage in the preparation of the pill is to mix the appropriate volume of acid precursor into the carrier brine immediately before the breaker pill is pumped into place.
Oil-based filter cake The initial development work concentrated on water-based mud filter cakes. Following successful applications of such breakers, the question of whether a similar technique could be applied to filter cakes from oilbased mud was explored.
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Examples OPENHOLE HORIZONTAL GRAVEL PACK Conditions included: • BHT: 85° C (185° F) • Permeability: ~4 darcy • Section length: 1,000-1,500 ft • History: Drilled with BARADRIL-N water-based mud. Gravel pack- alpha/beta. Previous wells were not treated with the N FLOW breaker. Clean up system used: • N FLOW 325 breaker Operation and Outcome: • The reservoir section was drilled and gravel packed as normal. • Following the gravel pack operation the breaker was introduced into the inside of the gravel-pack screen. NOTE: To accelerate contact between the breaker fluid and the filter cake, the breaker was introduced in four tranches. The first two were 0.12 kg/L more dense than the carrier brine and were designed to accelerate displacement of the less-dense residual gravel carrier brine from the lower part of the hole. Tranches three and four were 0.12 kg/L less dense than the carrier brine and were designed to displace the upper part of the hole. HOT GAS WELL Conditions included: BHT: 91° C (196° F) Formation: Very tight sandstone Section length: 1,600 ft Completion: Standalone screens
LIMESTONE FORMATIONS There have been some spectacular results when treating limestone wells with these breakers, and some of the success could be due to a feature of these additives. The usual treatment of wells in limestone involves the introduction of the breaker fluid to the zone to be treated; the usual progression is that after several hours, the breaker fluid leaks off into the pore volume in the interior of the formation. Of course, the fluid leaking off will contain some spent as well as some unreacted breaker fluid. This unreacted material will release acid into the internal pore structure of the limestone. Thus, some increase in the pore dimensions in the near wellbore zone is expected; with the prospect of concomitant improved flow rates. A possible example of this effect is represented by the results of some wells in Kuwait. Of four fairly identical wells, two were treated with the N-FLOW 325 breaker and two with 15% HCl. The two acid types had very different results! The wells treated with the breaker had twice the production of those treated with HCl. Another Middle Eastern example is a well drilled an oilbased mud in limestone with. Completion in this case was a standalone screen, and the treatment was with N-FLOW breaker plus BDF-443 surfactant. Production exceeded expectation by 240%. SANDSTONE OIL-BASED, MIDDLE EAST APPLICATION (65° C / 150° F) A horizontal section 1,700 ft long was drilled using oilbased mud and the hole was completed with standalone sand screens. The cleanup treatment involved 15% 325 breaker plus 2% BDF-443 surfactant. The production rate was 150% better than expected.
This well was drilled with BARADRIL–N water-based mud and treated with the N-FLOW 408 breaker. Expected production was 30 MMcf/d but actually came in at 70 MMcf/d. and rapidly creates losses, then the acid precursor can be lost into the formation before it can clean the acid-soluble portion of the cake. A better solution is to use a family of acid-responsive surfactants. These are surfactants that exert their effect as pH falls. If applied to the filter cake without acid, they have no effect, but at low pH, the residual emulsion in the filter cake is broken and the solids become water wet and open to easy attack by the released acid. Thus, the advantage of the acid-responsive surfactants is that their action works in tandem with the release of acid by the N-FLO breaker. Because they only act when the conditions are appropriate, the risk of rapid wet-ability change and loss of acid precursor into the formation is minimized. Currently, there are two acid-responsive surfactants available for use – BDF-443 and BDF-442. BDF-443 is preferred North Sea for its better environmental rating.
Filter cake removal Inclusion of an acid-responsive surfactant results in good removal of the filter cake. There is another benefit of this breaker and acid-responsive surfactant combination. Generally, provided the bridging particles in the drill-in fluid are acid soluble, the breaker system works well in all existing mud formulations. The mud can be formulated so that it
fits the job in hand and requires no special additives or emulsifiers. The standard breaker formulation can be tailored to the mud easily, with no need to use special muds. The most important question is how well the promise represented by these laboratory results is borne out in the field. Many wells have been treated over the last few years, and since this breaker system has been available, about 65% percent have been on sandstone formations, 35% on limestone, and around 12% involved oil-based mud. Most types of completions have been treated, including: • Standalone screens • Barefoot • Horizontal openhole gravel pack • Horizontal openhole water injection • Oil producers • Gas producers • Wells with bottomhole temperatures below and above 100° C • Sandstone and limestone formations.
Conclusion One of the most satisfactory aspects of N-FLOW delayed-action filter cake breaker project is that the laboratory results are supported by performance in the field. Other applications of the breaker technology are being investigated.
54 Offshore March 2011 • www.offshore-mag.com
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Deploying hybrid riser solutions for harsh environments
T
wo joint industry projects (JIPs) recently examined the use of deepwater hybrid risers for harsh North Atlantic environments. The first JIP targeted development of a hybrid riser based on known technology to use in Norwegian deepwater fields. Fatigue during installation initially was considered to be the most challenging obstacle. Good fatigue design and low fatigue load installation were governing goals for the concept definition phase. The resulting concept is a bundled riser tower fabricated onshore and towed submerged to the field. Tow out, upend, and installation can be done with three tugboats. The riser tower was defined for a case study with a large oil field at 1,500 m (4,921 ft) water depth. The second JIP showed that long, slender riser towers can be transported safely offshore by submerged tow. Two model tests were done – a tow test and a vortex induced vibrations (VIV) test. The tow test was done in still water, in waves with 3-m (9.8-ft) significant height, and 10-year summer storm conditions. The VIV test was in steady current with different speeds and inclined angles relative to the riser tower. The 1,300-m (4,265-ft) long riser tower was modeled in scale 1:38.6. Instrumentation included fiber optics to measure bi-axial bending strains at 20 locations along the riser bundle. The measured responses were also used to validate the analysis models applied to calculate tow resistance, wave induced dynamics, and VIV. Recent development of hybrid risers in West Africa proves it successful for deepwater fields with demanding flow assurance challenges3, 4, 5, 6. The main advantages of hybrid riser systems are: • Riser tower motions are decoupled from floater motions, reducing stress and fatigue problems in the riser system • Flow assurance can be achieved by thermal insulation, gas lift, and active heating • Bundled hybrid risers have small footprints and no interaction problems with flowlines and mooring lines • Schedule flexibility with pre-installation of hybrid risers • Increase local content by fabrication and assembly at local yards. Fatigue during tow out and installation was
Case study with two hybrid riser towers and turret-moored FPSO in 1,500 m of water.
the main challenge to adapting this technology to North Atlantic environments. Low fatigue load governed selection of a bundled hybrid riser and submerged tow. The JIPs were funded by Demo 2000, Statoil, Shell Technology Norway, Aker Solutions, Det Norske Veritas, and MARINTEK. Aker Solutions was responsible contractor with Det Norske Veritas and MARINTEK as cooperating contractors.
Hybrid riser description A hybrid riser system with a turret moored FPSO on a large oil field in 1,500 m (4,921 ft) water depth was the study case. The riser consists of two free-riser towers, the flexible risers between the towers and the FPSO, and the spools connecting the risers to the seabed flowlines. The two riser towers are identical. Each contains four production risers with individual gas lift lines and two injection risers. The main components of a riser tower are the riser bundle, the top assembly with buoyancy tank, and the bottom assembly. The riser towers are fabricated onshore, towed to field, upended, and connected to pre-installed anchor foundations at seabed. The long, slender riser bundle contains risers, a central structural pipe, and buoyancy elements. The bundle concept has the
Kjell Hagatun
Aker Solutions Oddrun Steinkjer
Det Norske Veritas Halvor Lie
MARINTEK
following features: • The external risers are fixed at the top and can slide axially to accommodate thermal expansion. The production and gas lift risers can be thermally insulated. • The center pipe is the structural load carrying element between the buoyancy tank and the anchor foundation. • Buoyancy elements molded from syntactic foam ensure that the riser bundle is approximately weightless in water during tow and upending. • Guide rings around the buoyancy elements keep the bundle parts together and allow riser pipes to slide axially. • Elastomer bearing pads go between the rigid buoyancy sections to allow for a bend in the riser bundle. • Several bulkheads along the riser bundle to transfer the uplift forces from the buoyancy elements into the central structural pipe. For the case study, the riser bundle was about 1,200 m (3,937 ft) long with a diameter of approximately 2 m (6.5 ft). The buoyancy tank must carry the submerged weight of the riser tower and flexible risers, and limit the offset/angle of the tower due to environmental forces. The buoyancy tank is positioned about 200 m (656 ft) below sea level where the wave loads are moderate, even in severe storm conditions. The compartments are soft tanks that are 100% water filled during tow out, upend, and installation. After the riser tower is connected to the foundation, the compartments can be air filled as necessary to achieve the target net buoyancy. For the case study the tank was sized to provide up to 1,600 metric tons (1,764 tons) net uplift during service. The proposed tow out and upend requires the tank to have constant net buoyancy during these temporary conditions. This is achieved by adding buoyancy elements made of syntactic foam at the top and bottom. The riser tower is anchored to the seabed foundation by a flex joint that allows the riser tower to tilt as much as 10º in any direction. The foundation can be an anchor pile or a gravity based structure. The hybrid riser system was subjected to comprehensive analysis for the in-place condition. The analyses documented that the dynamic response in the tower is relatively small, and is due mainly to motion of www.offshore-mag.com • March 2011 Offshore 55
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The offshore upend and installation can be done similar to the riser towers installed in Africa.6
Model tests
Riser bundle defined for case study.
the flexible jumpers as introduced by FPSO motions. The resulting stresses in the riser tower were manageable for both extreme loads and fatigue loads. Hybrid riser systems can serve a range of deepwater fields developed by FPUs. Fluid transfer capacities can be adapted to field requirements by changing the number of riser towers, and the type, size and number of risers. With a turret-moored FPSO, the maximum riser number is limited by the turret and swivel.
Tow out, installation Tow-out and installation of the riser tower are designed for longdistance offshore tows and a 10-year summer storm in the Norwegian Sea. Early in the project it was concluded that submerged tow was the only feasible transport method for bundled riser towers over long distances in harsh environments. Submerged tow of riser towers had been proposed by others2,7, and recently the Greater Plutonio riser tower was installed successfully by the submerged tow method.6 The main principles for submerged tow in harsh environments are: • The long riser bundle is near neutrally buoyant in water and is tensioned by two tugboats • The forward and aft tanks are buoyant with net uplift to support heavy chains connected to tanks tow lines • Towing depth is controlled by the leading and aft tugs adjusting tow line lengths and pull forces. The riser tower is towed with the large buoyancy tank forward. For the case study, a back tension of approximately 1,000 kN was assumed, and the forward and aft buoyancy tanks had a net uplift of typically 60 and 40 metric tons (66 and 44 tons), respectively. In survival and temporary conditions, the riser tower can be parked by lowering the aft end until parts of the heavy chain rests at seabed. With a slightly buoyant riser bundle, the tower can also be parked by lowering the forward end. The submerged tow method for riser towers has the following advantages: • Tow-out, up end, and installation can be done by three offshore tugs • Few operations between inshore tow, offshore tow, and upend • The riser tower behaves well with low bending even in storm conditions • A survival condition is easy to accommodate • Fatigue management can be incorporated by adjusting the towing depth, towing speed, tow heading, and parking for survival conditions.
The model tests of the hybrid riser tower were done by MARINTEK in Trondheim, Norway. Two test campaigns were performed: • Towing tank tests studied behavior during normal towing conditions, 10-year summer storm, and some accidental conditions • VIV (vortex-induced vibration) tests in the ocean basin investigated VIV during tow. The principle arrangement for the tow test comprised the submerged riser tower, two towing line/chain systems, and two tugs connected to the two carriages. The model set up for the VIV test was a submerged riser and two towing line/chain systems suspended between two gondolas. Constant back tension was achieved by a weight-pulley system mounted at the “aft” gondola. The current in the ocean basin is in one direction so the riser tower model was rotated to get the specified angles between the tower and the incoming current. The riser tower and the chain/wire towline system were modeled with correctly scaled dimensions, mass, and buoyancy. The riser bundle also was built with correctly scaled bending stiffness. Two identical tug models were made for the tow tests. After launching the model in the towing tank the weight was adjusted slightly to achieve correct submerged weight with nearly neutrally buoyant riser bundle. The riser bundle was instrumented with fiber optics at 20 locations to measure axial and bi-axial bending strains. The towing test was instrumented to measure wave elevations, towing speed, tug motions, vertical motions of riser tower buoyancy tanks, and forces in towing and mooring lines. In the VIV test the current speeds were measured to compare with the calibrated speeds.
Tow test The test program for the riser tower in the tow tank included: • Towing in still water with speeds of 0.5, 1.0, 2.0, and 3.0 m/s (1.6, 3.28, 6.5, and 9.8 ft/sec.) • Towing in waves with 3 m (10 ft) significant height with the same towing speeds • 10-year summer storm with both tugs connected • 10-year summer storm with bottom end parked above seabed • Simulating parking for survival conditions • Simulating accidental conditions with increased weight (leak) and aft tow line break. The fatigue analysis of the measured bending stresses along the riser bundle showed very low fatigue damage. The riser tower could be towed for several months in sea states up to 3 m significant wave height. The tow tests demonstrated the feasibility of the submerged tow method: • The towing operations can be controlled by adjusting riser tension, tow depth, tow speed, and tow direction • The riser tower can be safely parked with bottom chain lying at seabed. Furthermore, the building of riser tower model illustrated the importance of accurate weight and buoyancy control during fabrication, and final adjustment of submerged weight after launch.
VIV test The program for VIV tests in the ocean basin included tests with: • Current speeds ranging from 0.3 m/s to 1.1 m/s (1-3.6 ft/sec.) • Current angles between zero and 90º • Constant back tension of 1,000 kN (base case) and 750 kN.
56 Offshore March 2011 • www.offshore-mag.com
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Illustration of submerged offshore tow method.
Buoyancy tank construction.
At zero heading, no VIV was observed. For all other tests, resonant cross flow vibrations of the riser tower were observed with amplitudes around one diameter. The highest responses appeared at the aft end with the smaller buoy. The periods of the eigenmodes excited were typically between 10 and 20 seconds. The highest standard deviation of VIV cross-flow bending stresses along the riser in each test was plotted against current
speed and angle for the tests with 1,000 kN back tension. The highest standard deviations were measured with 0.6 m/s current speed at 90º angle and the test with 1.0 m/s speed and 30º angle. Fatigue calculations for the central structural pipe used the measured standard deviations of VIV bending stresses. The critical hot spot was the inside (root) of the single sided girth welds where the DNV F3 S-N curve in air were applied in combination with a stress concentration factor (SCF) of 1.0. This approach is considered conservative since the fatigue strength of the actual girth welds probably is significantly better than the F3 curve (which also includes a SCF of 1.61, ref. DNV-RP-C203, Table 2-1).
The riser tower must be designed with a factor of 10 on fatigue life, i.e. the accumulated fatigue damage must be less than 0.1. Assuming that maximum 50% of the damage can occur during tow-out gives a maximum allowable damage of 0.05 for the tow-out fatigue calculations. The resulting highest fatigue damage along the riser for each test with 1,000 kN back tension was plotted as function of current speed and angle. The damages for 24hour durations of each current condition were used. The highest damage of 0.011 per day was estimated for two tests: The test with 0.6 m/s current and 90º angle and a test with 1 m/s current, 30º angle and reduced back tension of 750 kN. Continuous VIV at this
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damage rate would be acceptable for many hours but not many days. The main findings from the VIV tests can are as follows: • All tests showed moderate stress levels in riser tower • Negligible fatigue for current speeds below 0.4 m/s for all angles • Negligible fatigue for current/towing angles below 15º and speeds up to 1.1 m/s • Current/towing speed of 1 m/s and 30º angle can give moderate fatigue damage • Reduced back tension gives increased fatigue damage. Negligible VIV fatigue can be ensured by using good heading control, high back tension, and moderate/low towing speed during the riser tower towing operations. Hence it can be concluded that the feasibility of the offshore submerged towing method has also been verified with respect to VIV.
Validation of analysis The model tests also were used to validate the analyses methods and models for calculating tow resistance, dynamic responses, and fatigue damage during tow. VIV predictions for inclined current are of interest as no literature reference was found regarding experimental results to calibrate VIV analysis for inclined current conditions. The Riflex finite element program was applied for static and dynamic analysis of the riser tower towing operations. In general, Riflex predicts fairly well the measured responses. The dynamic responses of the smaller aft buoy were somewhat lower than the measurements. Shear7 was applied for VIV analysis. The following observations were made: • In general, the results from Shear7 analyses using normalized current compare very well with the results reported from the tests
• Analyses with the velocity normalized to the curved tower (banana shape due to static current) tends to flatten the standard deviation of the curvature compared to constant normalized current along the tower. Hence, this case fits best with the model test result • Using Strouhal number St=0.18 with normalized current on curved tower gives best fit with test results for all cases analyzed.
Acknowledgements The authors thank Statoil, Shell Technology Norway, Aker Solutions, Det Norske Veritas, and MARINTEK for permission to publish this paper and the Demo 2000 program for its financial support. The authors are particularly grateful to the JIP steering committee members for constructive discussions and valuable advices and to the project team at MARINTEK for performing the challenging model tests. References 1. G. Arnesen, J.I. Dalane, S.S.B. Arananadka, K. Herfjord, R. Snell and C.T. Stansberg: “Integrated Semi and Steel Catenary Risers in Deep Water and Harsh Environment Conditions,” OTC 2006, paper 18259. 2. A. Sele, P.K. Løken, R. Thomas and B. Klasen: “All-Metal Hybrid Riser for Ultradeepwater and Harsh Environments,” OTC 2005, paper 17107. 3. A. Serceau and R. Pelleau: “The Girassol Development: Project Challenges,” OTC 2002, paper 14166. 4. J.B. Bates, G.O. Gernon and M.D.A. Gillette: “Kizomba A and B: Installation Overview,” OTC 2006, paper 17941. 5. S. Couprie, R. Hallot, Th. Marty, X. Riou, D. Ferri: “Bundle Hybrid Offset Riser Thermal Performance Test on ROSA Project,” DOT Houston 2006. 6. D. Cruz, C. Zimmermann, P. Neveux and F. Louvety: “The Greater Plutonio Rise Tower,” OTC 2009, paper 19929. 7. R. Di Silvestro, F. Casola, G. Fatica, A. Mameli, and A. Prandi: “Novel Tow Methods for Deepwater Riser Towers Transportation in west-of-Africa Environment,” OTC 2006, paper 17892.
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Subsea processing advances to meet industry needs
T
he offshore industry, in particular the Gulf of Mexico, is still in a retrospective mode, assessing the impact from the subsea blowout in early 2010 and the ongoing global economic crisis. However, with signs of economic recovery and the potential for higher oil prices, the level of confidence for deployment of subsea processing equipment shows signs of revival. Subsea processing generally is considered to encompass pumps, separators, power distribution systems, and compressors installed on the seafloor. For oil systems, this equipment provides pressure boosting, processing, bulk water separation, sales-quality oil polishing, and raw seawater injection for reservoir pressure support. For gas systems, processing includes subsea gas compression and subsea gas dew point control/dehydration for flow assurance and sales quality. There is some element of technical maturity involved in the increased application of the technology, but there is little doubt that higher commodity prices are the main drivers for the upswing in subsea processing applications.
Subsea boosting Subsea boosting reduces or eliminates backpressure on the wells from the riser hydrostatic head, and, secondarily, the riser and flowline viscous pressure drop. Despite the associated cost and technical challenges, boosting is planned in deepwater and ultra deepwater projects well beyond the water depth ratings of existing seafloor boosting applications.
Subsea separation Subsea separation can be grouped into three technology areas: • Gravity separation systems • Caisson separation systems • Compact/dynamic separation systems. Each technology group is progressing and being implemented in the field at different paces. Caisson separation systems are the most affordable and have been used by both the majors and independent operators. This technology is proving to be more acceptable to the industry because of projects like BC-10 and Perdido.
K Janardhanan Mac McKee
INTECSEA
Gravity separation systems will be used by Total on Pazflor and have been used by Statoil on Tordis and on Troll C. Alternatively, compact/dynamic separation systems using cyclone separation are being developed to minimize the size of the separator for deepwater applications. Bulk subsea water separation and re-injection can be used to relieve the topsides water processing capacity in situations where topside water handling is a bottleneck, enabling additional production to an existing host. Currently, there is a pilot program under way which uses subsea seawater chemical treatment to minimize reservoir souring potential by improving the quality of the injection water.
Subsea gas compression Subsea gas compression competes with onshore compression for shorter offsets and also with floating compression for longer offsets. Economies of scale are substantial, so subsea compression is likely to be favored in large fields at moderately long offsets. At shorter
Current status as of March 2011 for subsea processing projects worldwide. www.offshore-mag.com • March 2011 Offshore 59
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SUBSEA
offsets, subsea compression may add value where liquid holdup is substantial and, consequently, topside compression is ineffective.
Improvements needed Anticipated developments in the Gulf of Mexico and offshore Brazil, West Africa and Southeast Asia all need improved subsea processing capabilities. The qualification for some of these capabilities is expected to be completed by year end 2011. The world map represents the current status of subsea processing projects around the world. In the Gulf of Mexico, applications exist for both deep and ultra deepwater lightoil boosting. In Brazil, the higher viscosity heavy oil exploration prospects require boosting beyond the capability of existing twin screw pump technology. In West Africa, typical water depths are more moderate and available multi-phase pumps can be used, but are limited in ultimate recovery by volumetric inefficiency at low suction pressures. In the North Sea, water depths generally are shallow and existing multi-phase pumping is adequate. Based on the potential applications and the technology limitations of available solutions, it is desirable to achieve the boost and gas tolerance of the ESP/caisson along with
the high-power and low intervention cost of seafloor multi-phase pump technology. Two general directions of the industry for improved subsea oil boosting technology are increased boosting capability and power for seafloor pumps, and bulk gas separation upstream of a gas-tolerant pump to avoid loss in volumetric efficiency at low suction pressure or high gas-to-oil ratios.
Moving forward According to Eric Hansen of Saipem, “each operator has a different approach” to subsea processing. Some operators are more prescriptive and others rely on the system packager to integrate hardware as a system, a sort of “wait and see” approach. However, it is becoming apparent that research and development has shifted from general R & D for subsea processing to project-specific work. In comparison with project lifecycle, the qualification of the boosting, separation, and compression technology takes a long time. Only the majors and the large NOCs can afford to take a long-term view of using the technology to increase reservoir recovery or to accelerate production rates. However, these companies are answering the industry’s call. Among NOCs, the leader in subsea pro-
cessing technology is unquestionably Statoil, with Petrobras a close second. Among the majors, Total and Shell are on the front lines with the use of subsea boosting and separation technology on multiple projects. The worldwide oil and gas industry continues to climb slowly out of the economic downturn. With the increasing demand for oil in China, Iraq emerging onto the world stage as an oil exporter, and conflicting opinions concerning peak oil, the industry looks forward with healthy optimism. Offshore oil and gas exploration will continue to advance into deeper and more challenging waters as new technology and increasing demand allow.
Subsea processing poster This issue of Offshore also contains the 2011 Worldwide Survey of Subsea Processing: Separation, Compression, and Pumping Systems with a number of improvements and additions to last year’s poster. The primary aims of this poster are to chronicle the development and developers of subsea processing systems, to introduce the new products, services and systems that have arisen since last year at this time, and to document the continued commitment of oil companies to the application of subsea processing technologies.
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FLOWLINES & PIPELINES
Simulated service vessel enhances deepwater pipeline insulation testing Compressive creep curves generated by the SSV improve computer modeling and thermal design Raphael Moscarello Vlad Popovici
ShawCor
S
ubsea production systems confront increasingly challenging temperature and pressure conditions, so it is important to assess the long-term insulation performance through various methods such as simulated service testing. Simulated service testing, where a thermally insulated pipe is exposed to the water pressure and temperature it will see in deepwater service, typically is used to collect data and to simulate long-term performance of an insulation system. ShawCor’s simulated service vessel (SSV) simulates service conditions by applying pressure to water surrounding the system while controlling the temperature inside the pipe. Continuous water flow ensures a stable, chilled water temperature on the outside of the pipe. The SSV can test insulated components of subsea production systems: linepipe, field joints, flexible pipe, or other custom fabricated parts such as flanges and fittings. It can also simulate service conditions for both multilayer and injection-molded insulation systems.
(Above) The vessel of the new subsea test facility. (Below) Door supported to meet high safety standards.
Measurement precision The precise measurement capabilities and capacity of the vessel allow detailed characterization of performance and accurate real-time measurement of heat flux, thermal conductivity, and U-value. The combination of SSV test data, laboratory material testing, and analytical methods establishs reliable predictors of long-term performance. This is important to reduce overall project risk in deep, subsea environments, and allows operators to implement a holistic, end-to-end thermal insulation approach by assessing the performance of entire subsea piping systems, not only linepipe, but also field joints and custom fabricated parts. To ensure the continuous flow of hydro-
carbon fluid through subsea oil and gas pipelines, thermal insulation coating often is applied to the piping systems to maintain the operating temperature of the conduit. Thermal insulation is also used to extend cool
down time by controlling energy loss during planned or unplanned shut downs. To reduce the risk of sub optimal performance and to design systems with lasting reliability, it is important to accurately quantify the www.offshore-mag.com • March 2011 Offshore 61
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FLOWLINES & PIPELINES
tion coating performance under the defined test conditions.
Determining thermal properties
SSV measurement and control system.
long-term performance of the insulated subsea production systems. The high-pressure/ high-temperature trend also encourages development of innovative thermal insulation materials and systems that need to be thoroughly tested and qualified for use. By measuring the changes in heat flow, thermal conductivity, and compressive creep of the insulation system, both the long-term thermal efficiency and depth rating capabilities of the insulation can be confirmed along with the overall heat transfer coefficient (U-value).
Testing capabilities To accommodate market trends towards deepwater oil and gas production, the SSV was designed for rigorous testing down to water depths of 3,000 m (300 bar), external temperatures of 4 °C (40 °F) and internal temperatures up to 180 °C (356 °F). The vessel captures precise measurements for accurate U-value calculations that then can be used to model and design the insulation system. The SSV accommodates project specific pipe – with internal diameter (ID) of up to 800 mm (32 in.) – that will be put into service so the operator will know accurately the true representative thermal performance of the installed pipe, custom fitting, or field joint. In addition, the SSV can test and compare three insulation coatings simultaneously, thereby shortening the test period. Further tests such as triaxial creep and finite element analysis (FEA) modeling of the insulation can run in parallel with the SSV tests to establish reliable, predictors of the long term performance of the insulation to minimize project risk. An SSV fundamentally is a large, cylindrical autoclave which can accommodate an insulated pipe or structure. The design of the vessel and test procedure follows the highest safety standards. The vessel door, which weighs 20 metric tons (22 tons), is fully
supported on a cart at all times during operation. The pipe is supported on a carriage during both set up and testing, eliminating the hazards of a suspended load.
Instrumentation system To begin a test, a thermally insulated pipe is mounted in the vessel which is instrumented with displacement transducers to measure diametrical change under hydrostatic load, thermal sensors for temperature measurement, and heat flux sensors to determine the heat loss from the system. Once thermal equilibrium is established, the vessel is pressurized and held at the required pressure for the duration of the test. The pressure is increased in specific increments to assess the immediate and long-term response of insulation properties to changes in pressure at a specific operating temperature. To obtain the desired test data, the measurement and control system of the SSV has several features. The steel pipe is heated with a seven-zone electrical heater and controlled by thermocouples in each zone. The following parameters are monitored: • Water temperature • Pressure • Temperature of the insulation coating surface • Heat flux in the radial direction at different zones • Radial displacement using LVDT sensors • Power consumption in each zone. Heat flow is measured directly by sensors mounted on the pipe to provide real time, accurate measurements along the length of the pipe. The heating system provides precise temperature control with a high capacity chiller and circulating pump, to maintain a water temperature of 4- 6°C (40-43°F). The system continuously monitors and records thermal properties during the test. The multi-zone controls and multi-point measurements of this system record the insula-
The SSV test provides accurate, real-time measurements and records compressive creep, heat flux, and thermal conductivity of multi-layer thermal insulation systems. Based on precise inputs, reliable U-values of the system can be calculated along various points on the pipe. “Creep” is mechanical deformation of the insulation system resulting from the combined effects of time, temperature, and mechanical load. Combined, these factors can be detrimental to long-term thermal properties, and thus affect the flow of fluid through the pipe. Creep can be measured in a triaxial creep test, which determines the specific material dependant deformation as a function of time, temperature, and pressure. However, these samples are not fully representative of insulation systems coated on pipe. The compressive creep curves generated by the SSV are important for computer modeling and thermal design of solid, foamed, and syntactic insulation systems. During the SSV test, the increase in pressure is planned in steps to capture the response of the system to pressure changes. The typical response for foam is to compresses over time. For a solid polymer, the material shows an immediate response that plateaus after about one week.
Predicting performance The best estimate of thermal performance is to compare FEA models with the actual performance of a project pipe from an SSV test. From laboratory test data, an FEA model can be generated to predict thermal and mechanical insulation properties. Triaxial creep tests can be used to further improve the FEA model. Consideration of the pipeto-pipe variance is established using process capability studies and quality control (QC) data gathered during production. This pipe-to-pipe variance, combined with the deviations between FEA predicted results and SSV test data, establishes confidence intervals around the thermal performance of pipes manufactured under the specified production conditions. The determination of confidence intervals should lead to a more accurate prediction of the long-term performance of the insulation system.
Acknowledgments Based on a paper presented at the ASME International Offshore Pipeline Forum & Exhibition held Oct. 20-21, 2010, in Houston.
62 Offshore March 2011 • www.offshore-mag.com
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March 2011
World Trends and Technology for Offshore Oil and Gas Operations
Port Fourchon: Optimistic about return to drilling
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Port Fourchon tolerates drilling shortfall with confidence, concern for tenants
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o lend a different take to the theme understaffed and under-funded, and the Jay Schempf song for the 1977 Burt Reynolds film, permitting curtailment issue appears to Contributing Editor “Smokey and the Bandit,” it appears have taken on a life of its own. President that, when it comes to the fortunes Barack Obama’s recently announced fiscal of the U.S. deepwater E&P industry as a major step-off point for the massive 2012 budget includes a $358.4 million rethat supports much of its activity, Port Four- industry/government oil spill containment quest to fund BOEMRE – a $119.3 million, chon, Louisiana, has a short way to go, but and dispersant program that spanned the or 50%, increase above the figure enacted it is taking a long time to get there. Gulf Coast from Texas to Florida. by Congress in fiscal 2011 – but there is In fact, it would not take a huge increase In any case, a nearly six-month official some doubt whether the new Republican in deepwater drilling progress to bring moratorium on deepwater drilling called majority in the House of Representatives the port’s commercial activity back to for in May by the U.S. Interior Dept., will green-light such a figure, given House previous high levels, but the specter of though technically lifted the following members’ vow to cut all new federal spendlast year’s Macondo oil spill, the largest in October, continued unofficially into 2011 ing, starting this year. The diagnosis: still U.S. history, combined with potentially more permitting numerous federal bureaudelay. cratic bottlenecks, are turning But while the shutdown in the trip back to prosperity a the Gulf and the slowdown of lengthy one. offshore service and supply For nearly a year, due to are serious threats to the the Macondo well explosion future of U.S. exploration, and oil spill, a total shutdown drilling, and production, Port of Gulf of Mexico exploration Fourchon continues in its role drilling has obliged Port Fouras the foremost Gulf Coast chon, the offshore industry’s center not only for oil and southernmost logistics hub, gas, but also for commercial to join with its service and fishing, seafood, shipping, supply company tenants and tourism, and recreation. landowners in “treading waThe Greater Lafourche ter” while awaiting a return to Port Commission, which something like pre-Macondo directs both the activities of activity levels. Other ports in the sea port as well as those Louisiana and along the Gulf The slowdown in GoM offshore activity is evident from this recent aerial photo of the nearby South Lafourche Coast that supply and service showing vessels stacked at Port Fourchon, awaiting new work contracts. Leonard Miller Jr. Airport, is the industry are in similar handling the current adverstraits. and today is what the industry is calling a sity with aplomb, and where possible, has A muddled drilling permit situation that de facto moratorium, or “permit-orium.” responded to the needs of its tenant base. stems from the blowout but has become Despite oft-made assurances that it is That includes reducing basic rental rates by even more perplexing in the hands of a not “slow walking” through the process of as much as 30% for a six-month period, as brand-new federal government regulatory granting new drilling permits, the Bureau well as freezing 5% annual escalation clauses agency, now strains the domestic offshore of Ocean Energy Management, Regulation, on leases for a full year, among other industry’s wherewithal. Producing comand Enforcement (BOEMRE), the fledgconcessions designed by commissioners to panies are forced to re-assess their GoM ling regulatory agency that has replaced help reduce tenants’ overhead costs. exploration plans, and that directly affects the Minerals Management Service (MMS) Nonetheless, the commission continues the fortunes of those companies who as the industry regulator in federal waters, with its wide-ranging expansion plans to supply and service Gulf exploration and is engaged in what its Director Michael double the port’s size from 600 developed production activity, particularly those with Bromwich calls “the most aggressive and acres to some 1,300 acres when completed. fully equipped and staffed service points at comprehensive reforms of offshore oil The airport, too, is under aggressive bases like Port Fourchon. and gas regulation and oversight in U.S. expansion, sporting a new 6,500-ft runway Ironically, the very incident that caused history.” And while Bromwich admits the and full parallel taxiway to accommodate the drilling shutdown generated some comlarge jet aircraft with wheel loads of up to industry’s post-Macondo success in commercial activity for Port Fourchon and its 75,000 pounds, and more improvements plying with new rules in the areas of drillparticipating companies’ facilities and equip- ing safety, subsea containment, and spill are on the way. ment. With the logistical advantage of quick response was key to Interior Sec. Ken SalaPort Fourchon has taken some hits access to the central Gulf from a substantial, zar’s lifting of the official moratorium, “we since this time last year, and it has the state-of-the-art shore base, Port Fourchon stacked deepwater service vessels and will not cut corners in the permit review was ideal to marshal the vessels, hardware, half-empty storage yards to prove it. But as process and permits will be approved only and supplies necessary to combat the Chett Chiasson, port commission exwhen we are satisfied that all applicable blowout at the Macondo well site, including ecutive director, says, “When it all comes regulatory requirements are met.” support of relief well drilling. It also served back, it will come back strong.” Add the fact that BOEMRE is severely
PORT FOURCHON SUPPLEMENT
No easy task: Getting there from here
www.offshore-mag.com • March 2011 Offshore 65
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THE WORLD’S NEWSSTAND®
Drilling stoppage leaves port slow but hopeful Port director’s ‘baptism of fire’ goes with the territory
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hett Chiasson, the professional executive director for the Greater Lafourche Port Commission since 2010, got quite an initiation into his job of executing the plans of the commissioners for whom he works. Having started the assignment on Jan. 1, 2010, Chiasson had just three months – not even enough time to break in his new office chair – before the fatal March Deepwater Horizon explosion and subsequent oil spill in the Gulf of Mexico brought almost everything at the port to a screeching halt. He soon became one of the spokesmen for the port area on national news media, as well as a point man on various regional and local organizations involved in the logistics of the oil spill cleanup. He also was a member of several groups that almost immediately saw the official deepwater drilling moratorium as a major threat to the economic well being of not only Port Fourchon, but also the entire Louisiana Gulf Coast. Despite this true baptism of fire, however, Chiasson believes the current down turn in Gulf deepwater exploration drilling is just that, a downturn in a cycle, even though the work stoppage continues to persist more than 11 months after the disaster. But Port Fourchon is fortunate in that despite the freeze on drilling permits for deepwater and ultra-deepwater wells, a lot of the port’s facilities and its tenants, who are oilfield suppliers and service companies, played active roles in the oil spill containment and reclamation project that followed the blowout, which occurred at BP’s Macondo Prospect in the deepwater Gulf. That non-drilling related work, coupled with the Port Commission Port Director electing to ease some rental stipulations, helped Chett Chiasson ease the pain for port tenants, allowing most of them to avoid major employee lay-offs. The problem, however, is that the spill cleanup is pretty much over, and the Port Commission, while willing to consider still more concessions to tenants, doesn’t have much more room in which to work. The commission, a political subdivision of the state of Louisiana made up of nine elected members, was founded in 1960 to promote the economic growth of Port Fourchon, the state’s southernmost port. Commissioners’ terms are for six years and all members are elected at the same time by voters of the 10th ward of Lafourche Parish. It is the only elected port commission in the state. The commission is tasked with regulating waterborne and airborne trade and commerce within its jurisdiction, which stretches roughly from the Gulf Intracoastal Waterway at the city of Larose to the utmost southern limit of the parish, where Belle Pass reaches the open Gulf of Mexico. Chiasson, with an undergraduate degree in political science and a master’s degree in public administration, both from Louisiana State University, was director of economic development for the commission before his promotion to the current assignment, which has the formal title of Port Director.
Layoffs lower than expected In a recent interview with Offshore, Chiasson said most companies engaged in the Gulf deepwater drilling and production market have avoided the kinds of massive lay-offs that occurred during other down cycles, particularly in the early 1980s and mid 1990s. This willingness to keep staff on board is apparent at Port Fourchon as well as many other Louisiana ports serving the offshore petroleum industry. “The oil companies and drilling companies have cut hours, have
Schematic of Port Fourchon layout as of Dec. 24, 2010.
cut pay for individuals some, and have done everything they could to keep their people,” he says. “That also goes for the service and supply companies, the kind who are our tenants. The industry has learned that you have to maintain your key personnel during a downturn, or when things start to come back at some point, they likely will come back strong and the companies will need those people.” But there’s only so much washing, painting, and sweeping that can be done, and unless the de facto deepwater drilling moratorium changes to allow permits to be handed to producing companies, and soon, there will be increased laying off of personnel in the coming weeks and months, says Chiasson. And, of course, there’s the trickle-down effect of layoffs in an industry segment important to a specific region. Grocery stores, restaurants, and all consumer service businesses suffer, as well, he pointed out. “Oil companies and drilling contractors who operate in the deepwater Gulf may be hurting somewhat,” he says, “but they are all multinational companies and they can move out of the Gulf to other parts of the world. But it’s the small, local, fabric of America who remains to suffer the effects of such moves. That story, he notes, is not being covered as universally by news media as was the blowout, oil spill, and cleanup. The local effects worsen as time passes, while many Americans living far from the Gulf Coast think everything is back to normal.
66 Offshore March 2011 • www.offshore-mag.com
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Delivering on deepwater operator demands for more than 50 years Operators in the Gulf of Mexico count on M-I SWACO because we call C-Port I, C-Port II and Port Fourchon home. For more than 50 years, M-I SWACO has honored its strong commitment to the operators along the Gulf Coast and in the Gulf of Mexico. Our deepwater customers get their M-I SWACO products loaded onto huge, next-generation supply vessels in a matter of hours rather than days, considerably reducing their transit costs. Even when Katrina and Rita blew through, we were back up and running in just five days. For more information about our products and services available through C-Port I and C-Port II, contact your local M-I SWACO representative, or call our Harvey, Louisiana office at 504 368 1414. *Mark of M-I L.L.C
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Honoring the GEST However, one of the sharpest arrows in the Gulf Coast awareness quiver, says Chiasson, is the progress being made by a team made up of chambers of commerce, businesses, and local elected officials in coastal Louisiana called the Gulf Economic Survival Team (GEST), This relatively small group was formed in June 2010 after the Obama administration’s May order to suspend for a minimum of six months all existing offshore drilling in water depths greater than 500 ft. Though lifted in October, says the group, the moratorium continues in de facto form, particularly for
drilling in deep and ultra-deepwater. But GEST appears to be having success by injecting local and regional economic input in face-to-face meetings with key cabinet members and their deputies in urging them to take swift and appropriate action on federal drilling regulations and to end the permitting slowdown (see related story, page 74). As a GEST member, Chiasson notes that since early January this year, several delegations have visited Washington, D.C., to talk with Interior Secretary Ken Salazar and his director of the Bureau of Ocean Energy Management, Regulation, and Enforcement
𰀶𰁣𰁠𰁠𰁝𰁢𰁛𰁙𰁦𰀔𰀺𰁣𰁩𰁦𰁗𰁜𰁣𰁢𰀔𰁝𰁧𰀔𰁭𰁣𰁩𰁦𰀔𰀖𰀺𰁝𰁦𰁧𰁨𰀔𰁨𰁣𰀔𰀷𰁕𰁠𰁠𰀖𰀔 𰁪𰁙𰁧𰁧𰁙𰁠𰀔𰁕𰁢𰁘𰀔𰁦𰁝𰁛𰀔𰁦𰁙𰁤𰁕𰁝𰁦𰀣𰁗𰁣𰁢𰁪𰁙𰁦𰁧𰁝𰁣𰁢𰀔𰁕𰁢𰁘𰀔𰁠𰁣𰁕𰁘𰁣𰁩𰁨𰀔 𰁚𰁕𰁗𰁝𰁠𰁝𰁨𰁭𰀠𰀔𰁧𰁩𰁤𰁤𰁣𰁦𰁨𰁝𰁢𰁛𰀔𰁨𰁜𰁙𰀔𰁧𰁜𰁙𰁠𰁚𰀠𰀔𰁘𰁙𰁙𰁤𰁫𰁕𰁨𰁙𰁦𰀔𰁕𰁢𰁘𰀔 𰁝𰁢𰁨𰁙𰁦𰁢𰁕𰁨𰁝𰁣𰁢𰁕𰁠𰀔𰁣𰁤𰁙𰁦𰁕𰁨𰁝𰁣𰁢𰁧𰀔𰁫𰁝𰁨𰁜𰀔𰁘𰁙𰁙𰁤𰁫𰁕𰁨𰁙𰁦𰀔 𰁕𰁗𰁗𰁙𰁧𰁧𰀔𰁣𰁢𰀔𰁨𰁜𰁙𰀔𰁡𰁕𰁝𰁢𰀔𰁗𰁜𰁕𰁢𰁢𰁙𰁠𰀔𰁝𰁢𰀔𰁄𰁣𰁦𰁨𰀔𰀺𰁣𰁩𰁦𰁗𰁜𰁣𰁢𰀢
𰂘𰀔𰀔𰀽𰁇𰁃𰀮𰀭𰀤𰀤𰀥𰀔𰀷𰁙𰁦𰁨𰁝𰁚𰁝𰁙𰁘𰀔 𰂘𰀔𰀔𰀥𰀠𰀩𰀩𰀤𰀔𰁀𰁝𰁢𰁙𰁕𰁦𰀔𰀺𰁙𰁙𰁨𰀔𰀔 𰁣𰁚𰀔𰁅𰁩𰁕𰁭𰁧𰁝𰁘𰁙 𰂘𰀔𰀷𰁦𰁕𰁢𰁙𰀔𰁇𰁙𰁦𰁪𰁝𰁗𰁙 𰂘𰀔𰀔𰁄𰁦𰁣𰁞𰁙𰁗𰁨𰀔𰁁𰁃𰀶𰀔𰁕𰁢𰁘𰀔𰀔 𰀸𰀹𰀡𰁁𰁃𰀶𰀔𰀷𰁕𰁤𰁕𰁖𰁝𰁠𰁝𰁨𰁝𰁙𰁧 𰂘𰀔𰀔𰀩 𰀠𰀤𰀤𰀤𰀔𰁈𰁣𰁢𰀔𰀸𰁦𰁭𰀡𰀸𰁣𰁗𰁟 𰂘𰀔𰀥𰀠𰀬𰀤𰀤𰀔𰁈𰁣𰁢𰀔𰀸𰁦𰁭𰀡𰀸𰁣𰁗𰁟 𰂘𰀔𰀔𰁇𰁨𰁕𰁛𰁝𰁢𰁛𰀔𰁕𰁢𰁘𰀔𰀔 𰁇𰁨𰁣𰁦𰁕𰁛𰁙𰀔𰀵𰁦𰁙𰁕 𰂘𰀔𰁃𰁚𰁚𰁝𰁗𰁙𰀔𰁇𰁤𰁕𰁗𰁙 𰂘𰀔𰁇𰁜𰁣𰁦𰁙𰀔𰁄𰁣𰁫𰁙𰁦 𰂘𰀔𰀷𰁙𰁦𰁨𰁝𰁚𰁝𰁙𰁘𰀔𰁋𰁙𰁠𰁘𰁝𰁢𰁛 𰂘𰀔𰀔𰁈𰁩𰁦𰁢𰁟𰁙𰁭𰀔𰁕𰁢𰁘𰀔𰁃𰁚𰁚𰀡𰁇𰁝𰁨𰁙𰀔 𰁇𰁙𰁦𰁪𰁝𰁗𰁙𰁧𰀔𰁚𰁦𰁣𰁡𰀔𰁨𰁜𰁙𰀔 𰀶𰁣𰁠𰁠𰁝𰁢𰁛𰁙𰁦𰀔𰀻𰁦𰁣𰁩𰁤𰀔𰀔 𰁣𰁚𰀔𰀷𰁣𰁡𰁤𰁕𰁢𰁝𰁙𰁧𰀮𰀔 𰀔
𰂘𰀔𰀹𰁢𰁛𰁝𰁢𰁙𰁙𰁦𰁝𰁢𰁛𰀔
𰀔
𰂘𰀔𰁁𰁕𰁗𰁜𰁝𰁢𰁝𰁢𰁛𰀔
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𰂘𰀔𰀼𰁭𰁘𰁦𰁕𰁩𰁠𰁝𰁗𰀔𰀔
𰀔
𰂘𰀔𰀵𰁦𰁡𰁕𰁨𰁩𰁦𰁙𰀔𰁇𰁙𰁦𰁪𰁝𰁗𰁙𰁧
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(BOEMRE), Michael Bromwich, among others, focusing on community-based information and how the virtual standstill in deepwater drilling permits negatively affects the entire Gulf Coast. The almost no news coverage in the national media of the GEST visits is an advantage, says Chiasson, since high-level officials like Salazar and Bromwich are much more willing to engage in quiet, but direct, talks about what can be done to get deepwater activity back to former levels. “Some federal government folks, along with many of the national media, believe that the Macondo incident reflected a lack of attention to human safety and environmental issues by an entire industry,” said Chiasson. “You better believe that the day after that blowout occurred, the entire industry was safer because oil companies, drilling contractors, service companies, and everybody else involved in the offshore industry was double-checking safety and environmental awareness practices and ordering that even more attention in terms of people and money be devoted to those and other important issues from then on.”
Expansion still Port watchword Despite drilling downturn, the port commission continues its actual and planned expansion projects at both Port Fourchon and the nearby South Lafourche Leonard J. Miller Jr. Airport. If something good could be said by port officials of the current slowdown, suggests Chiasson, it would be that the commission is getting out in front of things to some degree. Port Fourchon is, after all, the leading oil and gas terminal on the Gulf Coast, he notes, and for several years prior to the Macondo incident, the port catered to the needs of 90% of the deepwater rigs in the Gulf as well as servicing shallow-water drilling and production activities. The port has thrived because both operators and the companies who service and supply them with drilling equipment and consumables have changed their mode of operations from locating several or more small facilities all along the coast to be as near to offshore projects as possible, particularly when shallow water drilling and production dominated Gulf activity. However, when they began to move out into deeper water where prospects are far from shore bases, the industry elected to centralize operations at one or two bases, at most. Port Fourchon, the Louisiana port with strategic proximity to such deepwater operations, allowed those companies to consolidate their shore base activities, and the demand to lease Port property climbed quickly. “During the last five or six years, we’ve been in a ‘catch-up’ mode,” he says. “The demand has been ahead of us with regard to new construction. But we’re now getting
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a bit ahead, and that’s good.” When the port commission realized several years ago that Gulf deepwater development would place extraordinary demand on port property, it searched aggressively for expansion options. Moving north of the port’s central E-Slip, a 5,000-ft-wide, 24-ft-deep bulk headed slip on 400 elevated acres, which provides more than 18,600 linear ft of developed waterfront property, was the most feasible and cost-effective option. The commission then acquired 4,000 acres from landowners and in 2001 began construction on the first phase of its Northern
Expansion Project, which more than doubled the size of the port. Construction of Phase 1 is nearly completed. It contains 520 acres of property with 21,000 ft of water frontage and 180 acres of non-waterfront acreage. According to Chiasson, Phase 1 includes two separate slips, with plans for a third slip. The A-Slip consists of 3,300 ft of fully utilized waterfront acreage. The B-Slip, still under construction, consists of 14,700 ft of waterfront property, of which 10,100 ft is bulk headed. Even though the majority of B-Slip is leased already, the finishing touches are scheduled for completion later this year. Meanwhile, the third Northern Expan-
𰀮𰁐𰁐𰁓𰁊𰁏𰁈𰀍𰀁𰀁 𰀧𰁐𰁖𰁏𰁅𰁂𰁕𰁊𰁐𰁏𰁔𰀍𰀁𰀁 𰀁𰀁𰀴𰁖𰁃𰁔𰁆𰁂𰀏𰀏𰀏
𰀁𰀁𰀁𰀁𰀏𰀏𰀏𰀮𰁐𰁐𰁓𰀁𰀁𰀁𰀁 𰀁𰀢𰁅𰁗𰁂𰁏𰁕𰁂𰁈𰁆𰁔𰀏
𰀥𰁊𰁅𰀁𰁚𰁐𰁖𰀁𰁌𰁏𰁐𰁘𰀠𰀁 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 𰁎𰁐𰁓𰁆𰀁𰁇𰁐𰁖𰁏𰁅𰁂𰁕𰁊𰁐𰁏𰀁𰁑𰁊𰁍𰁆𰁔𰀁 𰁕𰁉𰁂𰁏𰀁𰁂𰁏𰁚𰀁𰁐𰁕𰁉𰁆𰁓𰀁𰁎𰁐𰁐𰁓𰁊𰁏𰁈𰀁 𰁄𰁐𰁎𰁑𰁂𰁏𰁚𰀏 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 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 𰁄𰁐𰁎𰁑𰁆𰁏𰁔𰁂𰁕𰁊𰁐𰁏𰀁𰁔𰁚𰁔𰁕𰁆𰁎𰀏 𰀪𰁏𰁕𰁆𰁓𰀮𰁐𰁐𰁓𰀍𰀁𰁂𰁏𰀁𰀢𰁄𰁕𰁆𰁐𰁏𰀁 𰁄𰁐𰁎𰁑𰁂𰁏𰁚𰀍𰀁𰁊𰁔𰀁𰁕𰁉𰁆𰀁𰁍𰁆𰁂𰁅𰁊𰁏𰁈𰀁 𰁈𰁍𰁐𰁃𰁂𰁍𰀁𰁎𰁐𰁐𰁓𰁊𰁏𰁈𰀍𰀁 𰁇𰁐𰁖𰁏𰁅𰁂𰁕𰁊𰁐𰁏𰁔𰀁𰁂𰁏𰁅𰀁𰁔𰁖𰁃𰁔𰁆𰁂𰀁 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 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 𰁎𰁐𰁗𰁆𰁔𰀍𰀁𰁎𰁐𰁐𰁓𰁊𰁏𰁈𰀁𰁔𰁆𰁓𰁗𰁊𰁄𰁆𰁔𰀁 𰁂𰁏𰁅𰀁𰁐𰁇𰁇𰁔𰁉𰁐𰁓𰁆𰀁𰁐𰁑𰁆𰁓𰁂𰁕𰁊𰁐𰁏𰁔𰀁 𰁊𰁏𰁄𰁍𰁖𰁅𰁊𰁏𰁈𰀁𰁆𰁏𰁈𰁊𰁏𰁆𰁆𰁓𰁊𰁏𰁈𰀁 𰁂𰁏𰁅𰀁𰁅𰁆𰁔𰁊𰁈𰁏𰀍𰀁𰁔𰁖𰁓𰁗𰁆𰁚𰀁𰁂𰁏𰁅𰀁 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 𰁂𰁏𰁅𰀁𰁔𰁖𰁃𰁔𰁆𰁂𰀁𰁊𰁏𰁔𰁕𰁂𰁍𰁍𰁂𰁕𰁊𰁐𰁏𰀏
𰁘𰁘𰁘𰀏𰁊𰁏𰁕𰁆𰁓𰁎𰁐𰁐𰁓𰀏𰁄𰁐𰁎
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sion project project – Phase 2 of the Northern Expansion -- is C-Slip, where dredging and filling are under way. It will be of a very wide slip -- 7,000 ft long by 700 ft wide -- of bulk headed waterfront property on which plans are to offer frontage for large equipment refurbishment, such as for mobile offshore drilling units. According to Chiasson, in 2003 Louisiana voters passed a constitution amendment to enable individual parishes to forego the ad velorem tax on drilling rigs brought to Louisiana for repair or refurbishment. In 2004, Lafourche Parish voters were the first in the state to repeal this tax, allowing the port to proceed with the design of C-Slip for such work. It is scheduled to be completed in next several years. The commission also is expanding its facilities to serve the shipping market. Chiasson adds that its location allows easy access for all types of cargoes, including containers or breakbulk. Exports as well as imports can be handled, and trucking can reach any point in the U.S. within three days. The port’s proximity to Central American also can allow it to handle refrigerated produce that is highly perishable, such as melons, bananas, cucumbers, and squash, to name a few, says Chiasson. What’s more, the port already has a U.S. Customs and Border Protection office, with personnel available to inspect and clear cargo with a minimum of delay. Vessel agency and custom house broker services also are available.
Airport still expanding The South Lafourche airport in nearby Galliano continues to expand. Brought under the commission umbrella in 2001, it has morphed from a local small plane airport to a center for mid-size corporate jet aircraft as well as for large helicopter services. The airport now sports a strengthened runway that’s 6,500 ft long and 100 ft wide that can support wheel loads of up to 75,000 lbs. A parallel taxiway was added recently for convenience and to allow multiple aircraft takeoffs and landings on the main runway without interruption. Additionally, a localizer antenna and distance measuring equipment (DME) have been installed as part of a full instrument landing system. An automated weather observation system (AWOS) has been installed, as have fueling facilities. New hangers for both fixed wing and helicopter aircraft are new additions. According to Chiasson, the enhanced airfield capabilities allowed the airport to be used extensively for certain mid-sized aircraft taking part in the Macondo cleanup effort, bringing much needed oil spill containment equipment to within easy reach of service vessels used in both offshore and inshore spill cleanup operations.
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HOS PORT FOURCHON Hornbeck Offshore’s HOS Port shore base is a 66-acre facility at Port Fouchon, LA., supporting the deepwater E&P logistics requirements of our customers. It offers nearly 3,000 linear feet of proprietary dock space, shore side support for our vessel charterers, water depths sufficient for the deep draft berthing required by large OSVs and MPSVs and a 300-ton heavy lift crane with a reach of 180 feet. But it doesn’t end there. Through on-site vendors, HOS Port can provide dispatching, fuel and lube distribution, waste removal, tank cleaning, office, warehouse and outdoor storage space, and rental equipment, including A-frames, winches, AHC/ articulating gangways, ROVs, portable accommodation buildings and more.
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PORT FOURCHON SUPPLEMENT
THE WORLD’S NEWSSTAND®
Tough economic times probably will slow Phase 2 of LA 1 project Coalition arranges for new, segmented funding from Louisiana DOT
T
his past October, the LA 1 Coalition lost their bid for a $100-million federal grant, but continues to seek government aid – this time, at the state level – in helping to build the remainder of its Phase 2 of the Louisiana Highway 1 Improvement Project in Lafourche Parish. The coalition is a non-profit corporation formed by residents and businesses in the region around Port Fourchon to improve the highway that connects the port and its surrounding area with the rest of the United States. A key member of the coalition is the Greater Lafourche Port Commission. The ultimate objective of the LA 1 project is a new raised highway linking Port Fourchon, along with Grand Isle in neighboring Jefferson Parish, with the rest of the country. When completed, it will serve as a federally designated High Priority Corridor, almost totally invulnerable to the tidal surges wrought by the Gulf of Mexico hurricanes and gales that have plagued its original road bed for more than half a century. Today, however, while it leads to the nation’s only offshore port with proximity to the part of the central Gulf where deepwater and ultra-deepwater drilling takes place, certain stretches of the highway are often flooded by torrential rains and high tides associated with storms. What’s more, it is the only means of evacuation for some 35,000 residents of southern Lafourche Parish and Grand Isle, with evacuated offshore workers increasing that
Phase 2 of the LA 1 Improvement Project will be built in segments.
number by nearly half. Once rising flood waters cover the highway, vehicular evacuation becomes impossible. And lastly, interstate truck traffic from U.S. 90 to Port Fourchon, particularly along its current road bed through wetland areas below the city of Larose, has increased in some years by as much as 24%. Fatal accidents are on the upswing, and trucks bringing mostly drilling consumables – tubular goods and well equipment, drilling fluids, cement and chemicals, among other supplies – keep the portions of the road not yet upgraded in constant disrepair, with the associated slowdowns.
Romancing Phase 2 Phase 2 of the project comprises an 8.3-mi, double lane elevated roadway from the community of Golden Meadow south to Leeville, where it will connect with the already installed Tomey Doucet Toll Bridge over Bayou Lafourche; and then with the nearly completed Phase 1 project, a two-lane section of elevated highway stretching from Leeville to Port Fourchon, an earlier phase scheduled for completion this summer. There, it meets with LA 3090 and existing LA 1, which runs for another
eight miles to Grand Isle, itself a future upgrade candidate. Last August, the coalition applied for an infrastructure grant under a federal government process known as the Transportation Investment Generating Economic Recovery (TIGER) program. The application was for $100 million of the $600 million pigeon-holed for the TIGER program for fiscal 2010. The grant would have funded a significant portion of Phase 2. However, in October, when the U.S. Transportation Dept. announced the list of more than 70 projects around the country that would be awarded the TIGER grants (with the highest single grant being $47.7 million), the coalition application was passed over – apparently for being too expensive.
Back to Square 1 According to Henri Boulet, LA 1 Coalition executive director, real and forecasted budget constraints at both the federal and state levels at this time will make it nearly impossible to amass the estimated $285 million necessary to bid out Phase 2. But nobody’s giving up. The group asked Louisiana’s Dept. of Transportation to consider segmenting its construction budgets for future Phase 2 funding into three parts so that each section, with matching funds from federal and private sources, could be built as the money became available. “The DOTD recently agreed to do so,” said Boulet. “The $285 million likely will be divided into segments of $40 million, $45 million and $200 million.” He added that the coalition is now monitoring development of highway and energy bills in the new U.S. Congress, and looking for other federal and state government funding wherever it may be discovered. The remainder of Phase 2 funding would be covered by private financing.
72 Offshore March 2011 • www.offshore-mag.com
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PORT FOURCHON SUPPLEMENT
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A matter of survival: The GEST story Local government, businesses and citizens fighting for Louisiana Gulf Coast economy
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he ongoing protest against federal government foot-dragging on new offshore drilling regulations, like politics, has become local. The protesters say the delay is putting a severe economic strain on the economies and populations of the communities in which they live and work. Chief among these civil activist groups in Louisiana is the Gulf Economic Survival Team (GEST), and its concerns apparently are getting some positive response. The nonprofit GEST task force, formed in June 2010 under the leadership of Louisiana’s then acting Lt. Governor, Scott Angelle (now secretary of the state’s Natural Resources Dept.), is made up of local citizens and governmental and business leaders, among others, in the Port Fourchon – Grande Isle – Golden Meadow area of the state’s Lafourche Parish. When they started, GEST employed direct mail, petitions, resolutions and personal appeals to convey their apprehensions directly to President Barack Obama, to his Interior Secretary, Ken Salazar and to the director of Interior’s newly created Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE), Michael Bromwich. These issues center around what GEST members believe is an inordinate amount of time – some 11 months – having been spent by BOEMRE in making sure that all deepwater drilling in the Gulf of Mexico is in proper compliance with new federal rules on safety, technical, environmental and mechanical issues connected with federal permits required to drill exploration wells in the deep and ultra-deepwater Gulf of Mexico. GEST is stressing quick and final determination of these issues in the hope of lessening job losses and negative economic distress affecting their region.
Countering the knee-jerk The original impetus for GEST was the May 2010 official Interior Dept. moratorium on all exploration drilling in water depths of more than 500 ft, which the industry considered a hasty, knee-jerk reaction to the fatal Deepwater Horizon explosion and fire in March that resulted in a major oil spill along the central and eastern Gulf Coast. GEST members, among whom are boat companies, oilfield service providers, small independent producing and drilling companies, engineering firms,
Louisiana’s Natural Resources Secretary Scott Angelle.
and vessel owners, believe the moratorium and subsequent investigations by ad hoc federal commissions and committees give rise to blaming an entire industry for just one incident and deeming it a system (make that industry)-wide problem. To counter this perception, GEST responded with petitions, testimony before various congressional committees and commissions, conference calls to regulators and workshops designed to develop best practices for compliance with the new requirements. But even after Salazar lifted the moratorium in October 2010 – two months early – basing the action on what he called the positive response by industry in addressing safety and environment concerns, a resumption in new drilling still was not forthcoming. That’s when GEST put things into a higher gear. With membership growing by the day, GEST leaders, determined to show that the drilling shutdown was placing a potentially ruinous burden on the Louisiana Gulf Coast economy, succeeded in scheduling face-toface meetings with government bigwigs like Salazar and Bromwich on their own home turf : Washington, D.C. Various GEST groups made in-person visits to the nation’s capital. In fact, as Offshore went to press, they had made six such trips during January through early March, gaining access each time to intended target regulators and their staffs.
Tackling the issues Lori LeBlanc, GEST executive director, said GEST currently is focused on three major regulatory hurdles that figure significantly in holding up the issuance by BOEMRE of deepwater drilling permits to offshore operators. They include:
• Whether the industry is demonstrating a leading-edge spill containment capability as called for by regulators. GEST believes the two programs already or soon to be put in place by the Marine Spill Containment Co. and Helix Energy Solutions Group, Inc. will fulfill that requirement. • “Ambiguous” points contained in a new environmental assessment (EA) approval process, says GEST, need clarification. And since BOEMRE already has exempted 16 drilling projects filed by 13 companies who had obtained approvals from BOEMRE’s predecessor agency, the MMS, GEST believes there may be other companies and projects that fit that criterion and that they, too, merit EA approvals. The third issue, she said – perhaps the most important of the three – concerns an Interim Final Drilling Safety Rule requirement issued by BOEMRE last fall that calls for companies to embrace industry standards in ways GEST feels are not always applicable or appropriate to each deepwater drilling operation, and which could actually pose heightened safety and environmental risks. This involves what LeBlanc called “arbitrary” re-writing of existing language, the most contentious of which was changing the introduction to each recommended practice from “the industry should,” to “the industry must.” “They grouped the entire industry under these change,” she pointed out. “That includes drilling, production, pipelining and all the other phases of offshore development. We believe they failed to go through the rule to determine the unintended consequences of changing ‘shoulds’ to ‘musts.’ It’s simply not doable.” LeBlanc said GEST is stressing that alternative language be substituted, and while no changes have yet been made, GEST leadership is cautiously optimistic that at least some changes ultimately will be made. Meanwhile, under the leadership of Angelle, GEST hopes to continue its almost weekly dialog in Washington with Salazar, Bromwich and their staffs in anticipation of returning their communities to economic health before the damage becomes too widespread while there’s still time – but not much.
74 Offshore March 2011 • www.offshore-mag.com
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t probably comes as no surprise that businesses both large and small that serve the Gulf of Mexico offshore drilling and production industry have been seriously affected under an 11-month pause by the federal government in issuing deepwater and ultra-deepwater exploration drilling permits. One thing is certain, however: Most of those same businesses, though increasingly alarmed by the growing downturn in their deepwater drilling market share, aren’t sitting around in sack cloth and ashes. Some are looking for ways to accentuate certain segments of what they do, while others are considering diversification, even taking their business overseas. Here are a few examples of such companies, all of whom carry out operations in just Lafourche Parish and in the Port Fourchon area.
B&J Martin, Inc. Galliano Jimmie “Beau” Martin Jr., sales manager of his family owned company, which specializes in post-decommissioning seabed debris removal, is expanding that service to the North Sea area. In fact, he’s already met with several U.K. offshore vessel companies interested in licensing his company’s
patented seafloor cleaning net technology. “We’re starting out as an abandonment consultant there,” Martin A deck load of seabed explained. “Many debris retrieved by a J&M of the 4-pile and Martin Gorilla trawl net. 8-pile fixed platforms installed in the southern North Sea off England in the 1970s have finally reached the end of their useful lives, and removing them to shore as salvage is starting to gain momentum. Once they are gone, the stakeholder companies will need our netting technology and experience to clean up the leftover seabed debris around the platform sites, as ordered by U.K. regulators.” He said Martin vessels – built very much like open-sea shrimp trawlers, the construction of which was the company’s initial business when it opened its doors in 1942 – may be moved to the North Sea or new vessels may be built in the U.K. He noted that personnel from several U.K. vessel companies already have been trained in using the debris recovery gear. “Since 1990, when we developed our special debris recovery net, we’ve done 1,000
of the 1,800 or so platform site clearances performed so far in Gulf, and have picked up debris in up to 450 ft of water,” said Martin. What kind of debris? Just about anything installed on a fixed structure, he said. “The most often reclaimed debris includes pieces of steel grating, boat landing platforms, stairs wells, wire rope, broken pipe and lots of shrimp netting that fowled on it through the years. But we’ve also picked up tools, equipment skids and occasionally, washers and dryers. One time we even picked up a proverbial kitchen sink.”
Halo Wire Rope Port Fourchon Kenneth Ragusa, principal owner of Halo and related subsidiaries that supply the marine industries with wire rope slings, tow lines, chain slings, hoists and blocks and other rigging hardware, is ramping up the company’s use of Radio Frequency Identification (RFID) technology to bring total traceability to all equipment it fabricates in its Port Fourchon and other locations in the state. The technology behind RFID provides a safety compliance solution that utilizes a combination of software, handheld devices and the Internet to automate inspection and safety compliance management.
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Ragusa says rigging hardware, safety anchor shackles and mooring sockets are now being fitted during manufacturing with individually serialized electronic RFID tags that contain stored data covering the piece of equipment itself, which helps to solve many of the inventorying and tracing problems encountered when in large inventories of similar equipment are kept. A hand-held reader, merely pointed at the equipment, transmits power to the tags for instantaneous data retrieval and recording to the reader’s hard drive. This then can be exported to a main computer data base and/or sent electronically via the Internet. “The RFID system eliminates inspection and audit paperwork, gives personnel the ability to conduct inspections and audits faster and more securely, and gives management real-time visibility into safety,” said Ragusa.
VIH Cougar Helicopters, Inc. Galliano A relative newcomer to the Lafourche area, VIH Cougar furnishes a number of fast, long-range helicopter aircraft for use in personnel transfer and other special air services to the Gulf deepwater drilling industry. Larry Lippert, director of operations, says the company brings “North Sea” flight standards to the Gulf that stress both safety and security by routing its entire operation through its new $10 million, ultra-modern passenger facility and hanger, completed
in March 2010, at the South Lafourche Leonard Miller Jr. Airport in Galliano. Currently, VHI Cougar plans to have they operate one two VH-139 helicopters 19-passenger based at the South LafourSikorsky S-92 he- che Leonard Miller Jr. Airlicopter for pas- port at Galliano, Louisiana. senger transport. The giant S-92 can, however, be converted quickly for an emergency medical services (EMS) configuration. The company also fields a smaller VH-139 helicopter fully equipped for EMS missions for companies who are contract members of a VIH Cougar cooperative effort. Members of the co-op include oil producers and both drilling and construction companies, all of whom operate in far-flung deepwater areas of the Gulf. The medical services currently are provided by the Acadian Companies, a highly respected EMS service provider located across the Gulf Coast from Texas to Mississippi. VIH Cougar provides continuity of care from the medic on the platform to the doctor in the emergency room, all under Acadian Cos. control.
Bollinger Shipyards, Inc. Lockport A privately owned shipbuilding company established in 1946, Bollinger is a leader in
providing new vessel construction and marine repair and conversion services, specializing in a wide variety of small to mediumsized offshore and inland vessels used by the energy, commercial and government marine markets in the U.S. Gulf region. According to Robert R. Socha, executive vice president of sales, in addition to a current contract to build four heavy duty tugboats, Bollinger has managed to keep its 12 shipyards in Louisiana and Texas busy with vessel and barge repair projects, as well as with an ongoing program of replacement by the U.S. Coast Guard of its 110-ft patrol vessels with a faster, 87-ft long range vessel, most of which will be built at Bollinger yards. The company is building several military patrol vessels for overseas governments, as well. But that’s not all. Thanks to the company’s ownership of numerous dry docks with capacities ranging from 100 tons to 10,000 tons at various shipyards, Bollinger also is big enough to be currently building three “sludge ships” for the City of New York, a large river barge in three sections, and expanding a floating casino vessel. But despite a significant decline in overall utilization of Bollinger’s core business, Socha is optimistic about the future, particularly that of its full-service shipyard at Port Fourchon, where its vessel support capacity was expanded recently with addition of a 1,800-ton dry dock that is suitable for servicing vessels in the 100-ft to 180-ft range. Manson Gulf, LLC lends its valuable experience working for oil industry leaders in the Gulf of Mexico.
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March 2011
World Trends and Technology for Offshore Oil and Gas Operations
Bergen, the subsea capital: Maintenance, modification, operation
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BERGEN NCE SUBSEA
Bergen’s subsea expertise reaches out to Brazil Business and innovation center targets Vitoria
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his should be a landmark year for the subsea cluster around Bergen on Norway’s coast. The local industry association NCE Subsea is seeking to forge new links with Brazil, one of the most promising markets for the Bergen area’s thriving technology and services sectors. After signing a formal business cooperation with Espirito Santos state last November, NCS Subsea is determined to help its member companies come to terms with the Brazilian market and the energy opportunities it presents. The accord – which has the aim of establishing a Norwegian business and innovation center in the Brazilian regional capital of Vitoria – came about via the intervention of INTSOK, the Norwegian agency which helps internationalize Norway’s oil and gas expertise. Following the signing ceremony at the Palace of Anchieta, the state government building in Vitoria, Trond Olsen, General Manager of NCE Subsea, explained what the agreement could mean for the future. “There is a long-term relationship between us and the Espirito Santos region.” Forming links with Brazil, he added, could be used to form the basis of a relationship through which Norwegian companies could support the energy market in Brazil.
Collaborative aims Along with Australia, Brazil is set to become a significant subsea market for the Bergen region. “We intend through the relationship to make it possible for companies, schools, and research and development institutions to take part in the Brazilian oil and gas industry,” Olsen says. The deal has five broad aims: collaboration on promoting technological cooperation between small and medium enterprises; coordination of funding mechanisms to encourage partnerships between Brazilian and Norwegian companies; promotion of competitiveness between SMEs; collaboration on national innovation systems; and fostering of oil and gas relations between the two regions through business and research and development with particular emphasis on the subsea sector.
John Bradbury
Special Correspondent
Trond Olsen.
For NCE Subsea, the relationship will mean concentrating on the competencies the Bergen region can provide, “where we have competences we can supply,” Olsen explained. For some Norwegian companies, having a local partner in Brazil is critical. Aker Solutions has already formed its own local subsidiary for manufacturing in the Brazil energy market. Ultimately, Olsen sees this new collaboration effort leading to the formation of new companies jointly owned by Norwegian and Brazilian entities. Will this be a two-way process? Initially at least, Olsen says he expects to see the majority of the expertise being exported from the Bergen area to Brazil.
Drivers for innovation One of the drivers behind the formation of this new partnership is the maturity of some market sectors in the North Sea. “Both the UK and the Norwegian continental shelf are in decline – not within the aftermarket segment, but overall investment is slowing,” Olsen says. Consequently the group has had to broaden its outlook and Brazil is an obvious target with the growing subsea market opportunities it presents. Local Brazilian companies will have more than enough work to deliver to the national
market there, says Olsen. “And that is a policy that they have engaged in. However, it is damaging to a national industry because if you become too focused on your own, national industry, if you just stress local content, you will most likely see higher prices and lower quality products than if your industry is exposed to international competition: You need to compete in international markets. It is better to be connected to the international market because then you can get feedback on your technology and get exposure to quality and technology invented elsewhere.” But Brazil’s demands are changing too. From the deepwater production benchmark set by the Roncador field in a water depth of 1,700 m (5,577 ft) back in 1997, Brazil is now moving to greater water depths. Equipment for production from 3,000 m (9,840 ft) is now called for. “That is a brand new technology requirement for installation, operations and monitoring,” Olsen pointed out. “You may need to find other ways of working in ultradeepwater on subsea wells: Accessibility is not going to be the same at 300 m [984 ft] as at 3,000 m – that is quite another story.” So the skills of the Bergen subsea cluster will be in demand as Brazil embarks on a whole new era of subsea technology which will demand extreme innovation for operation at extreme depths. This is where Olsen believes his member companies can play a part. Several NCE Subsea partner companies can offer some of the services and technologies that the future deepwater market will need: they include ClampOn and Roxar, which is now providing sand monitoring; Naxys, providing hydro-acoustic monitoring of subsea installations; Framo Engineering and Roxar supplying multi-phase metering; and Bennex, a specialist in subsea cables and couplings. Further technologies from Norway – such as seabed seismic monitoring – permanent seismic or 4D (time-lapse) seismic are now available to the offshore market through Norwegian suppliers. Other products from the Bergen cluster include high-quality bend stiffeners for risers, oil-in-water moni-
78 Offshore March 2011 • www.offshore-mag.com
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BERGEN NCE SUBSEA tors, high temperature resistant electronics for downhole use, subsea control systems, and ROVs with ultra-deepwater capability. “The list is long,” Olsen says. “Therefore we have developed a database where cluster companies and other subsea companies can register their products, services and technologies, displaying them for potential customers and suppliers.” The database can be accessed at http://index.ncesubsea.no.
Recovery targets Turning to the tends seen in the industry today, Olsen notes that not just on the Norwegian Continental Shelf but also elsewhere, operators are looking to increase oil recovery (IOR) from existing wells, an area in which he believes NCE companies can also play a part. “Offshore Norway we are now putting increasing emphasis on IOR – how to get more out of each well,” he said. The target recovery rate for subsea wells – usually much lower than surface completed wells – has now been pushed out to 55% and to 70% for platform wells. NCE Subsea cluster companies like Framo Engineering with its pumps and boosting technology are a very important part of that.” He draws attention to Framo’s recent
contract to provide IOR services to Statoil at the Gullfaks field in the North Sea through developing subsea compression, and Aker Solutions’ program to supply a gas compressor for the Shell operated Ormen Lange II project. Both have the ultimate aim of maximizing oilfield recovery. “Framo does all of its development here in Bergen,” Olsen points out. From its origins in 2006 with a core of 36 member companies to today with a trebling of membership to 112, NCE Subsea has been instrumental in bringing new technology forward, mainly at that critical first stage when individuals or companies need to get their first concept off the drawing board and turned into a project that leads to a finished product. “The value of membership is in being part of a network,” Olsen says. His organization has often played its part in helping fledgling companies find the first finance needed to get a project off the ground. Once a company has started to move forward, other sources of backing area available from the Industry Technology Facilitator (ITF) and the Norwegian Research Council, but NCE Subsea has provided direct assistance in attracting finance and business partners. Olsen says this is all part of its work, en-
couraging technology development, product and supply co-operation, and globalization alongside its support functions of providing recruitment and competence expertise, in addition to public relations and cluster management. Organizing workshops and seminars are another side to the group’s work, i.e. introducing companies to new markets in the international arena – such as the UK, Brazil, the Gulf of Mexico, and Australia and to a lesser extent northern Russia, where all eyes remain on the Shtokman development. “Things there are taking a long time and there have been several delays in decision points and INTSOK experts think they will start doing something at the earliest by 2020,” Olsen suggested. Looking at the manpower market in the region, the group is also working to ensure a supply of expertise for the future, by establishing a bachelors’ and a masters’ degree in subsea technology at Bergen University College. Training courses to have been devised and NCE Subsea was instrumental in the formation of the Norwegian Branch of the Society of Underwater Technology. “We have a lot of expertise in the region,” said Olsen. “But in the years to come we will have to re-focus and help to make more
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BERGEN NCE SUBSEA Another educational move is NCE Subsea’s involvement in the world’s oldest subsea conference, the Underwater Technology Conference, which will be taking place at the Greighalen in Bergen on June 8 and 9. For the first time it will include a session providing the subsea chief engineers from some major operators to present and discuss their major challenges. This will provide these senior industry personnel with a platform from which to issue their future technology challenges to the contractors in the regional community. The conference should also feature a presentation by Norway’s Petroleum Safety Authority on its findings in response to the Deepwater Horizon investigation and the subsequent Macondo well oil spill, and the implications of those events for the Norwegian continental shelf.
Trond Olsen in signing ceremony in Brazil.
experts available – otherwise I think we will be back to where we were in 2006 to 2008, where demand [for expertise] was higher than the companies here could deliver.” Getting the energy message across in schools is part of that strategy – even at nursery level: “We have to become more attractive to the kids,” Olsen believes. To that end children have been given access to an ROV-operating simulator which allows them to pilot a vehicle down to a depth of 850 m (2,789 ft) at the Ormen Lange field, and watch it in 3D. NCE Subsea has assisted design of electronic learning packages for 15 and 16 year olds, along with mathematics teaching programs, and the use of subsea concepts at primary school level to combine theory with practice. This is the kind of hands-on experience which Olsen believes is so important in energizing the next generation of oil and gas personnel.
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BERGEN NCE SUBSEA
Making space for subsea demand
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ith demands for maintenance and bility and control over the parts of a reservoir John Bradbury modifications increasing offshore from which they wish to produce oil and gas, Special Correspondent Norway and globally, Aker Soluand helps reduce water cut from wells. tions’ service facility at Coast CenWith more valves per well, there is a conter Base in Ågotnes, near Bergen, sequent need for more control systems in is well placed to capture new opportunities for Tree overhauls subsea trees and work at Ågotnes is focusDemand for improved oil recovery is also ing on upgrading control lines from three to equipment refurbishment. “The market is growing continuously,” says having an impact at Ågotnes. Operators are five lines for each well: “That is dependent Arne Riple, Base Manager and Vice President, striving to increase recovery factors by 60% on how old the tree is,” Riple says. “Whether Subsea Lifecycle Services within Aker Solu- for subsea completed wells and by 70% for plat- they have one, two, or three lines, they are tions. He sees around 25% growth in activity this form wells. A further stimulus is coming from all upgraded to the same standard for better year compared with 2010. “There is an increas- the trend towards electronic or ‘E-fields’, as flow control.” ing demand for MMO (maintenance, modifica- operators seek higher levels of remote control Expansion plans tions, and operations) work and a large part of over their wells and subsea systems. Today, the base boasts about that is a carry over from contracts 460 personnel with around 130 we won in 2009,” he adds. of those working offshore at any That belief was backed up by one time. Facilities are being exAker’s second quarter results pubpanded to allow more room for lished in August 2010, which forethose people to work. “We have cast growth in subsea infrastrucjust opened an additional workture spending in 2010 and beyond, shop specializing in the extensive driven in particular by field develrefurbishment and upgrading of opments in Brazil, the North Sea, our logistics equipment for the West Africa, and Southeast Asia. disassembly of equipment, which New work is coming from new is fitted with a 70-metric ton (77field developments where newbuild ton) crane, and we are adding facilities are now being installed and mezzanine decking to allow us to Aker Solutions at Ågotnes is part improve our turnaround time,” of that picture, supporting offshore Riple points out. “Our aim is to construction of new subsea-related provide the Troll field with one hardware. Dong Energy’s Trym and Oselvar projects in the Norwe- A center of subsea excellence in Bergen – the Subsea Life Cycle Service newly refurbished subsea tree every second month from the gian North Sea are two new projects base at Ågotnes operated by Aker Solutions. beginning of February this year.” being supported from Ågotnes. “We are also involved in the refurbishPlans are to add two more logistics wareOthers are Eni’s Goliat oil development in the Barents Sea, and existing fields in production ment and upgrades of existing trees which houses next year, and new office facilities. such as Kristin, Morvin, Fram and Vilje, and have been placed on the seabed for several Eventually, the base will be able to accommore recently Åsgard and Ormen Lange in the years,” Riple explains. Operators are de- modate another 150 personnel, increasing manding more performance from existing the total to around 600. The NOK 60-million Norwegian Sea. Aker Solutions won a NOK 400-million wells, and Ågotnes is playing its part by pro- ($10.3-million) investment should also im($68.49-million) contract from Dong Energy viding an equipment refurbishment and up- prove the base’s capabilities. This follows a NOK 50-million (US $7.87-milE&P Norge in March 2009 to supply a sub- grade service for subsea trees: “For Troll we sea production system for the Trym devel- are doing that on six or seven trees a year lion) program launched in April 2007 which involved the addition of a new subsea equipment opment, and for Oselvar, the company has which is a step up compared with earlier.” The base provides support to several off- workshop, an office block with support facilisupplied a subsea template and manifold. Goliat involves major input from the base. shore operators, among them Statoil for the ties, and a storage tent, all of which opened in In September 2009, Aker Subsea Systems Troll, Njord, and Visund fields. Other clients 2009. Dave Hutchinson, Aker Solutions senior was contracted to supply subsea production include Shell; Marathon, for the Alvheim systems for the development. Its remit involv- and Volund developments in the North Sea; vice president for Lifecycle Services, said then ing project management, engineering, pro- Eni, which the base is providing support for at the opening ceremony for that third phase curement, fabrication, and equipment testing over the next five years for the Goliat instal- of Ågotnes expansion in 2009: “The investthrough start-up of Goliat. The program calls lation phase; Dong Energy, for Trym and ment into Bay Three at Ågotnes is not specififor eight integrated subsea templates plus 22 Oselvar; and Total for the forthcoming Hild cally for anything short term. The driver for this is increased capacity: It gives us increased wellheads and production trees, along with development. Tree upgrading is being performed at the capacity to support our clients in the Norwecontrol umbilicals, riser bases and workover systems. In the longer term, Aker intends to base to provide more downhole flowlines and gian sector and internationally.” Clearly that is still the driving force behind build a new base farther north at Hammer- control lines so that more valves can be put into a well. This gives operators greater flexi- the continuing growth of Ågotnes today. fest to support Goliat. www.offshore-mag.com • March 2011 Offshore 81
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𰁊𰁞𰁛𰀖𰀸𰁛𰁨𰁝𰁛𰁤𰀖𰁗𰁨𰁛𰁗𰀢𰀖𰁄𰁥𰁨𰁭𰁗𰁯𰀢𰀖𰁙𰁥𰁤𰁩𰁪𰁟𰁪𰁫𰁪𰁛𰁩𰀖𰁗𰀖𰁭𰁥𰁨𰁚𰀣𰁢𰁛𰁗𰁚𰁟𰁤𰁝𰀖𰁙𰁢𰁫𰁩𰁪𰁛𰁨𰀖𰁟𰁤𰀖𰁩𰁫𰁘𰁩𰁛𰁗𰀖𰀖 𰁪𰁛𰁙𰁞𰁤𰁥𰁢𰁥𰁝𰁯𰀖𰀣𰀖𰁜𰁥𰁙𰁫𰁩𰁟𰁤𰁝𰀖𰁥𰁤𰀖𰁪𰁞𰁛𰀖𰁣𰁗𰁨𰁡𰁛𰁪𰁩𰀖𰁜𰁥𰁨𰀖𰁣𰁗𰁟𰁤𰁪𰁛𰁤𰁗𰁤𰁙𰁛𰀢𰀖𰁣𰁥𰁚𰁟𰃓𰁙𰁗𰁪𰁟𰁥𰁤𰀖 𰁗𰁤𰁚𰀖𰁥𰁦𰁛𰁨𰁗𰁪𰁟𰁥𰁤𰀢𰀖𰁗𰁩𰀖𰁭𰁛𰁢𰁢𰀖𰁗𰁩𰀖𰁟𰁤𰁤𰁥𰁬𰁗𰁪𰁟𰁬𰁛𰀖𰁗𰁤𰁚𰀖𰁙𰁫𰁪𰁪𰁟𰁤𰁝𰀖𰁛𰁚𰁝𰁛𰀖𰁪𰁛𰁙𰁞𰁤𰁟𰁙𰁗𰁢𰀖𰁦𰁨𰁥𰁚𰁫𰁙𰁪𰁩𰀖 𰃅𰀖𰁦𰁨𰁥𰁬𰁟𰁚𰁟𰁤𰁝𰀖𰁗𰀖𰁜𰁫𰁢𰁢𰀖𰁩𰁦𰁛𰁙𰁪𰁨𰁫𰁣𰀖𰁥𰁜𰀖𰁦𰁨𰁥𰁚𰁫𰁙𰁪𰁩𰀖𰁗𰁤𰁚𰀖𰁩𰁛𰁨𰁬𰁟𰁙𰁛𰁩𰀖𰁜𰁥𰁨𰀖𰁪𰁞𰁛𰀖𰁟𰁤𰁚𰁫𰁩𰁪𰁨𰁯𰀤𰀖 𰁃𰁥𰁨𰁛𰀖𰁪𰁞𰁗𰁤𰀖𰀧𰀦𰀦𰀖𰁙𰁥𰁣𰁦𰁗𰁤𰁟𰁛𰁩𰀖𰁗𰁤𰁚𰀖𰁥𰁨𰁝𰁗𰁤𰁟𰁰𰁗𰁪𰁟𰁥𰁤𰁩𰀖𰁜𰁥𰁨𰁣𰁩𰀖𰁪𰁞𰁛𰀖𰁘𰁥𰁚𰁯𰀖𰁥𰁜𰀖𰁪𰁞𰁛𰀖 𰀸𰁛𰁨𰁝𰁛𰁤𰀖𰁗𰁨𰁛𰁗𰀖𰁩𰁫𰁘𰁩𰁛𰁗𰀖𰁙𰁢𰁫𰁩𰁪𰁛𰁨𰀤 𰁊𰁞𰁛𰀖𰁄𰁥𰁨𰁭𰁛𰁝𰁟𰁗𰁤𰀖𰀹𰁛𰁤𰁪𰁨𰁛𰀖𰁥𰁜𰀖𰀻𰁮𰁦𰁛𰁨𰁪𰁟𰁩𰁛𰀖𰀞𰁄𰀹𰀻𰀟𰀖𰁉𰁫𰁘𰁩𰁛𰁗𰀖𰁟𰁩𰀖𰁗𰁤𰀖𰁟𰁤𰁟𰁪𰁟𰁗𰁪𰁟𰁬𰁛𰀖𰁘𰁯𰀖 𰁪𰁞𰁛𰀖 𰁩𰁫𰁘𰁩𰁛𰁗𰀖 𰁟𰁤𰁚𰁫𰁩𰁪𰁨𰁯𰀖 𰁟𰁤𰀖 𰁪𰁞𰁛𰀖 𰀸𰁛𰁨𰁝𰁛𰁤𰀖 𰁗𰁨𰁛𰁗𰀖 𰁜𰁥𰁨𰀖 𰁪𰁞𰁛𰀖 𰁩𰁪𰁨𰁛𰁤𰁝𰁪𰁞𰁛𰁤𰁟𰁤𰁝𰀖 𰁗𰁤𰁚𰀖 𰁟𰁤𰁪𰁛𰁨𰁤𰁗𰁪𰁟𰁥𰁤𰁗𰁢𰁟𰁰𰁗𰁪𰁟𰁥𰁤𰀖 𰁥𰁜𰀖 𰁘𰁫𰁩𰁟𰁤𰁛𰁩𰁩𰀢𰀖 𰁈𰀜𰀺𰀖 𰁗𰁤𰁚𰀖 𰁛𰁚𰁫𰁙𰁗𰁪𰁟𰁥𰁤𰀤𰀖 𰁄𰀹𰀻𰀖 𰁉𰁫𰁘𰁩𰁛𰁗𰀖 𰁗𰁟𰁣𰁩𰀖𰁪𰁥𰀖𰁙𰁥𰁤𰁪𰁨𰁟𰁘𰁫𰁪𰁛𰀖𰁪𰁥𰀖𰁨𰁛𰁩𰁛𰁗𰁨𰁙𰁞𰀢𰀖𰁟𰁤𰁤𰁥𰁬𰁗𰁪𰁟𰁥𰁤𰀢𰀖𰁙𰁥𰁣𰁦𰁛𰁪𰁛𰁤𰁙𰁛𰀖𰁚𰁛𰁬𰁛𰁢𰁥𰁦𰁣𰁛𰁤𰁪𰀖 𰁗𰁤𰁚𰀖𰁟𰁤𰁪𰁛𰁨𰁤𰁗𰁪𰁟𰁥𰁤𰁗𰁢𰀖𰁘𰁫𰁩𰁟𰁤𰁛𰁩𰁩𰀖𰁚𰁛𰁬𰁛𰁢𰁥𰁦𰁣𰁛𰁤𰁪𰀤𰀖𰀻𰁣𰁦𰁞𰁗𰁩𰁟𰁩𰀖𰁟𰁩𰀖𰁥𰁤𰀖𰁩𰁪𰁟𰁣𰁫𰁢𰁗𰁪𰁟𰁤𰁝𰀖 𰁙𰁥𰁢𰁢𰁗𰁘𰁥𰁨𰁗𰁪𰁟𰁥𰁤𰀖 𰁗𰁤𰁚𰀖 𰁛𰁮𰁦𰁛𰁨𰁟𰁛𰁤𰁙𰁛𰀖 𰁩𰁞𰁗𰁨𰁟𰁤𰁝𰀖 𰁭𰁟𰁪𰁞𰁟𰁤𰀖 𰁪𰁞𰁛𰀖 𰁙𰁢𰁫𰁩𰁪𰁛𰁨𰀢𰀖 𰁗𰁤𰁚𰀖 𰁭𰁟𰁪𰁞𰀖𰀖 𰁤𰁗𰁪𰁟𰁥𰁤𰁗𰁢𰀖𰁗𰁤𰁚𰀖𰁟𰁤𰁪𰁛𰁨𰁤𰁗𰁪𰁟𰁥𰁤𰁗𰁢𰀖𰁙𰁥𰁢𰁢𰁗𰁘𰁥𰁨𰁗𰁪𰁥𰁨𰁩𰀤 𰁄𰀹𰀻𰀖𰁉𰁫𰁘𰁩𰁛𰁗𰀖𰁟𰁩𰀖𰁩𰁫𰁦𰁦𰁥𰁨𰁪𰁛𰁚𰀖𰁘𰁯𰀰 𰀿𰁤𰁤𰁥𰁬𰁗𰁪𰁟𰁥𰁤𰀖𰁄𰁥𰁨𰁭𰁗𰁯𰀢𰀖𰁪𰁞𰁛𰀖𰁈𰁛𰁩𰁛𰁗𰁨𰁙𰁞𰀖𰀹𰁥𰁫𰁤𰁙𰁟𰁢𰀖𰁥𰁜𰀖𰁄𰁥𰁨𰁭𰁗𰁯𰀖𰁗𰁤𰁚𰀖 𰁪𰁞𰁛𰀖𰀿𰁤𰁚𰁫𰁩𰁪𰁨𰁟𰁗𰁢𰀖𰀺𰁛𰁬𰁛𰁢𰁥𰁦𰁣𰁛𰁤𰁪𰀖𰀹𰁥𰁣𰁦𰁗𰁤𰁯𰀖𰁥𰁜𰀖𰁄𰁥𰁨𰁭𰁗𰁯
𰁭𰁭𰁭𰀤𰁤𰁙𰁛𰁩𰁫𰁘𰁩𰁛𰁗𰀤𰁤𰁥
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Norwegian Piping
PR XIMA S E R V I C E S
A S
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SCANDPOWER Risk Management
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BERGEN NCE SUBSEA
Cargotec expanding solutions for subsea load and anchor handling Nick Terdre
Contributing Editor
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argotec, a world leader in offshore and onshore cargo and loadhandling, has an extensive portfolio under the MacGregor brand. This portfolio includes offshore and subsea load-handling systems comprising marine and active heave compensated (AHC) cranes; fiber rope-handling technology for ultra deepwater operations; launch-and-recovery and module-handling systems for (ROVs) or tools. MacGregor also provides systems for anchor-handling and towing and mooring operations, and deck and rescue handling equipment. Subsea load handling is of growing interest to oil companies as they develop fields in ultra-deep waters, and new vessels come onto the market specifically designed for such operations. The new MacGregor ultra deepwater lifting system (UDLS) offers a solution to the problems encountered by conventional cranes when lowering loads by steel wire – by virtue of the weight of the wire itself, a 150-metric ton (165-ton) single-line crane effectively “loses” 25 metric tons’ capacity for every 1,000 m (305 m) of wire deployed. “We can combat this problem with the MacGregor UDLS which uses new multi-component fiber ropes that are weight-neutral in water,” says Jon Hell, sales director for subsea load handling. “By using this system, the 150-metric ton [165-ton] crane would be able to deploy its full load of 150 m tons down to a depth of 5,000 m [1,524 m], for example. The weight of thousands of meters of submerged rope does not have to be subtracted from the crane’s total load capacity, and the UDLS can access unlimited depths.” The system, which incorporates active heave compensation, is located on a frame fitted to the vessel’s side, and employs the crane’s existing steel wire winch in combination with fiber rope. The UDLS is available as a 150 or 250-metric ton (275-ton) capacity system, and can be supplied to ready for various lengths of fiber rope. It can also be offered as a simpler version, but prepared for upgrading for deeper locations.
ROV protection Few subsea operations take place without the assistance of ROVs, and MacGregor also supplies launch-and-recovery systems (LARS) and ROV hangar doors. These must be able to operate in high seastates typical of the North Sea and other harsh marine environments. The MacGregor doors are of well-proven structural integrity, particularly with respect to high sea loads. Specially designed seals ensure weather-tightness when the doors are closed and secured. One of the latest deliveries of this product was to Norshore’s newbuild riserless drilling vessel Norshore Atlantic last year. It comprised a single large top-hinged hangar door and two top hangar hatches. A MacGregor hangar door was also delivered to Fugro’s Fugro Saltire survey vessel, along with an ROV LARS system. The company can now offer the two systems in an integrated package, which includes both main and remotely operated controls for the hangar door and the LARS. Cargotec is keen to promote its ability to supply whole systems solutions, which it sees as key to optimizing the function and the overall functionality of specific ship types. A good example, according to Mario Greiner, vice president business development, is a €20
Cargotec is due to deliver a package of load-handling systems to Hallin’s new semisubmersible CSS Derwent.
million ($27.2 million) package due to be delivered later this year to Hallin Marine Subsea International’s compact semisubmersible CSS Derwent, a twin-hulled vessel intended primarily for deepwater light well intervention. The delivery comprises: • A 150-ton ACT knuckle-jib crane with 3,000 m (914 m) wire capacity • An offshore service crane • Several ROV LARS systems, including both moonpool-based and deck-mounted versions, with umbilical winches • A module handling system with tower, moonpool system, and fully integrated deck-skid system. Load handling both on deck and in the water column were also the features of an order booked late last year for a deep-sea research vessel under construction at Mitsubishi Heavy Industries Shimonoseki shipyard in Japan. The order comprises a large knuckle-jib crane, an advanced moonpool-based module handling system, a deck-skid system and several deep-sea AHC winches with a depth capacity of up to 10,000 m (3,048 m). All winches in this series are fitted with a proven MacGregor electric drive system. The company claims its winch performance, compact design, power efficiency, and low noise level offer a superior solution to alternative systems. As for anchor-handling equipment, one of Cargotec’s chief customers is offshore vessel operator Bourbon, which has ordered MacGregor anchor-handling systems for installation on 54 of its Liberty 200 series anchor-handling tug and supply (AHTS) vessels. The latest order, worth €10 million ($13.6 million) and placed last October through the Sinopacific shipbuilding group in China, was for 16 ship-sets to be delivered between next April and February 2012. Cargotec maintains a global service network to provide equipment support and training. It can respond quickly to requests for maintenance and repair services around the world. And as its deliveries to the offshore sector grow, it has established a competence center for subsea load-handling products at its Kristiansand base in southern Norway. It has also developed a simulator for training operators to use its offshore and subsea active heave compensated cranes. The simulator, mounted in a 20-ft (6-m) container, can be used by customers at their own premises and convenience.
84 Offshore March 2011 • www.offshore-mag.com
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BERGEN NCE SUBSEA
Framo Engineering: A major contributor to subsea technology development in Bergen
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s a recognized leader in the manufacture and supply of multi-phase pumps and subsea systems, it’s no surprise that Framo Engineering A/S is based in Bergen, Norway, the city with perhaps Western Europe’s largest cluster of companies that offer a wide range of subsea technology for the offshore petroleum industry. Established in 1983, Framo is a pioneer in Bergen’s earliest search for companies engaged in core subsea technologies. Having developed multi-phase pump systems since the 1980s, Framo Engineering today supplies those that incorporate all equipment necessary for integration with subsea production systems and which can be operated safely from topside SCADA systems via the variable speed drives and pump controls located in dedicated Power and Control Modules (PCMs) or in local equipment rooms. At the same time, the company is a major supplier of swivel stack and fluid transfer systems for both FSO and FPSO applications. Framo swivel and turret systems are installed aboard a large number of floating production systems in most major offshore oil and gas provinces around the world. The swivels and fluid transfer systems are robust; securing excellent uptime for what is a very critical system for floating production system operators. Perhaps foremost among Framo Engineering’s products – many resulting from extensive research and development in joint projects with major producing companies – are its multi-phase and wet gas meters, which have dominated the subsea and topside market due to their accuracy, flexibility, and robustness. Customers rely on Framo’s use of Vx technology to monitor and optimize their reservoirs. When installed topside, Framo multiphase metering systems deliver continuous monitoring of well performance and can even replace conventional separator systems. As a solution for subsea infrastructure, such systems are installed for continuous monitoring of single wells or mounted on test headers for alternate well testing.
West Africa contract As an example of its worldwide product approval, Framo announced in late 2010 a contract with Total E&P Angola to supply a subsea pumping system for the CLOV deepwater development project off Angola, West Africa Under the contract, Framo will supply: • A suction anchor
Framo Engineering has developed a complete range of pumps to meet offshore petroleum market demands.
• A Framo FDS subsea pump module with two Framo Hx multi-phase pumps • An umbilical system • A topside PCM. The CLOV development comprises the Cravo, Lirio, Orquidea, and Violeta fields. A total of 34 subsea wells will tieback to an FPSO unit, which has a processing capacity of 160,000 b/d and a storage capacity of 1.78 MMbbl. The Framo FDS module will be located downstream from the four production manifolds to boost the Miocene oil production back to the FPSO. Delivery of the system to Angolan waters is expected in 2013. In addition to the CLOV contract, Framo Engineering also recently received a contract order from Total Angola for 10 additional subsea multi-phase flow meters (MPFMs) for the Dalia deepwater oil field, also off Angola. When the newest meters are delivered sometime later this year, Framo will have supplied 37 MPFMs to the Dalia field alone.
Partnership working well Framo Engineering also announced at yearend that under its arrangement with Schlumberger – begun in 1998 – it has sold nearly 1,200 MPFMs equipped with Vx technology around the world. In fact, Framo officials note, the company’s patented PhaseWatcher Vx is finding an everincreasing level of acceptance. As a consequence, the PhaseWatcher Vx is now established as the preferred MPFM of choice by operators. The Framo-Schlumberger partnership as resulted in optimized strengths in process engineering and well testing. This, along with Framo’s product center, 3-Phase Mea-
surements A/S, outstanding research centers (Norway, UK, and USA), manufacturing, testing facilities in Bergen, and support services around the world, has established and recognized the PhaseWatcher Vx as “Best in Class” for production management, well testing and fiscal allocation. The advanced MPFM technology associated with PhaseWatcher Vx allows operators to measure oil, gas, and water flow rates without bulky separation. Since it requires less instrumentation and is essentially maintenance-free, the PhaseWatcher Vx represents the most compact multi-phase meter on the market, say company officials. The Vx technology is the core of the PhaseWatcher Vx (permanently installed) and Phase Tester Vx (portable). Together, these MPFMs provide major performance advantages, among which are: • The ability to measure from 0-100% Gas Volume Fraction (GFM) using oil/ gas-mode or dual-mode software in the same hardware package • Only meter with field-proven technology for dual-mode measurement • The ability to measure fractions down to the atomic level • Totally independent of flow regime, such as slug flow and foam or emulsions • Erosion-resistant design • Continuous measurement for all phases, independent of transition from oil to water continuous flow. Based on sophisticated flow models and using nuclear detector technology, Vx technology gives high-quality, dynamic multi-phase flow measurements. A barium-133 source and a smart detector designed specifically for this application operate at as low as reasonably achievable nonhazardous gamma ray energy levels for field operators. The highly reliable well test data obtained helps diagnose production anomalies continuously, resolve problems more quickly, and produce wells more efficiently. According to Framo, its MPFM line has undergone more than 10,000 well tests per year with continued feedback for R&D.
At forefront of subsea power By focusing on standardization and maintainability, Framo has developed subsea modules and building blocks that allow for light intervention and simple integration with existing or new infrastructure. www.offshore-mag.com • March 2011 Offshore 85
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BERGEN NCE SUBSEA
Bennex supplies subsea technology to the oil and gas industry
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ennex has been developing and supplying subsea technology and products for more than 30 years, growing into a global presence in the subsea oil and gas industry. Today, the company possesses the skills, experience and expertise in sealing and termination solutions for subsea applications. The company’s products and solutions cover the complete range of subsea technologies, from electrical, fiber optic and hydraulic jumpers and flying leads, to ocean bottom seismic cables and nodes, towed seismic airgun umbilicals and electromagnetic (EM) products, and solutions for the remotely operated vehicle (ROV) business, renewable energy and modular wireless controls for the aquaculture industry.
the main players in the EM market. The company also designs and manufactures high current solutions for the source system and molding of various sensors.
ROV solutions and service
Innovative subsea power, communication systems The company’s products for the offshore oil and gas industry as well as for marine research and defense agencies range from high voltage switches to pressure compensated electrical or fiber optic systems. The company sharpened its teeth in the subsea distribution industry in one of the world’s first offshore markets, the North Sea, when it developed its first Anguila subsea power and distribution system for the Snorre B platform in 1993. About 10,000 assemblies are installed worldwide. With its MK2 interface, the Anguila system has become the industry standard for distribution of electric signals subsea. Since then, Bennex has gained a unique competence in the development and manufacture of electrical, fiber optic, and hydraulic jumpers. Bennex also supplies umbilical terminations with up to three barriers, which, like all of its umbilicals, are pressure compensated for extreme water depths. The company’s advanced cable termination (ACT) is an oil-filled, pressure and temperature compensated system with at least one double barrier, meaning there are at least two barriers between the electrical or fiber optic connection point and the water. This protection and the potential for a third barrier provides a 25-year life for the termination. Bennex has been providing advanced fiber optic terminations (AFT) for subsea applications for over 15 years, and can be designed for either long or short life cycles. The terminations are pressure compensated and tested for specific water depths.
Image of Bennex’s subsea distribution system.
The company’s high power changeover switch (HPCS) can be used in electrical subsea pumps, subsea separation, compressors, and pipe heating systems among many other applications. Since these systems often require high voltage and need to be controlled from the surface, the HPCS eliminates the necessity of using ROVs or diver intervention to switch from one application to another.
Seismic systems and components Bennex supplies components and systems to the seismic industry as well as for marine research, environmental monitoring, and military applications. The company’s products include multiple barriers for electrical and fiber optic cables, mechanical terminations and buoy loading systems. Bennex has supplied more than 20,000 ocean bottom cables to the global seismic industry since the mid-90s. Additionally, the company assembles and tests various ocean bottom nodes. The company developed its own Airgun Umbilical Termination, and also provides lead-in terminations and deck leads, along with service personnel. Electromagnetics (EM) is a new segment for the seismic market. Bennex supplies a wide range of self-manufactured products to
In 1979, Bennex introduced the ROV to the North Sea oil and gas industry. Since then, the company has maintained its status as the leading supplier of equipment for ROVs, and it manufactures, supplies, leases, and services ROVs with a wide range of parts, tools, and work packages. Bennex also is an agent for various manufacturers of underwater equipment and the company can provide service and maintenance required to maintain the ROVs. Bennex’s strength in the ROV industry lies in its manufacturing and the supply of equipment and cable systems as well as servicing and rebuilding. Bennex supplies a wide range of cables and connectors produced by other manufacturers in addition to its own specially designed connectors and penetrators that are adapted to its customers’ requirements. The company can service and repair all Titan manipulator systems, which is carried out by fully trained service engineers backed by a stock of spare parts for a quick turnaround of the repair and equipment. During the repair or rebuild, an assessment is conducted to establish what is necessary to bring the Titan manipulator system back to an operational standard. The unit is fully tested and a witnessed factory acceptance test is performed with all procedures documented during the rebuild. Bennex also operates a fleet of ROV manipulators that can be rented or leased to support customers’ contracts. The systems are fully prepared and include spare parts suitable for remote or local operations.
Complete service provider Bennex offers service agreements on all of its products and provides servicing and overhauling of electrical, fiber optic and hydraulic equipment for the oil and gas industry that is manufactured by other companies. The company not only stocks ample parts for its own products but also stocks connectors and cables for other manufacturers’ applications. The company also provides installation services for its systems and products for its customers who want to deal with only one equipment provider.
86 Offshore March 2011 • www.offshore-mag.com
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BERGEN NCE SUBSEA
Norwegian Centers of Expertise
T
he Norwegian Centers of Expertise (NCE) program is relatively young, having been implemented in 2006 by the country’s three main innovation agencies: Innovation Norway, Research Council of Norway, and Industrial Development Corporation of Norway (SIVA). The program is funded by two ministries: the Ministry of Trade and Industry and Ministry of Local Government and Regional Development. The NCE program aims to enhance sustainable innovation and internationalization in the most dynamic and growth-oriented Norwegian clusters. The program supports long-term development in the clusters based upon collaboration between industry, R&D and the public. An industrial cluster is a local or regional concentration of companies within the same industry or field of technology, as well as relevant knowledge operators. The purpose of a cluster is to start dynamic interaction among the companies which provide growth, regional development, and improved profiling. Over the last ten years, cluster development has become an increasingly important part of innovation policy both in Norway and elsewhere. To date, 12 clusters have been selected to be given status as an NCE project. • NCE Maritime is a world leader in the design, building, equipping, and operation of advanced vessels for the global oil industry • NCE Systems Engineering Kongsberg comprises knowledgebased companies active in the subsea, maritime, automotive, aircraft, defense, and aerospace industries
• NCE Raufoss is involved in the manufacturing of products in lightweight materials by automated production primarily for automotive and defense industries • NCE Instrumentation represents expertise in the field of sensor technology and advanced control and communications solutions • NCE Micro and Nanotechnology, which includes companies in the Norwegian electronics and ICT fields • NCE Oslo Cancer focuses on developing new cancer treatments and diagnostics • NCE Aquaculture focuses on creating value and innovation associated with commercial production of farm-raised fish and seafood • NCE Culinology’s objective is to strengthen the knowledge and innovation in gastronomy and culinary differentiation for the benefit of Norwegian food production • NCE Tourism’s objective is to make the Fjord region a leader in themed tourism • NCE Node operates within four niches: offshore drilling; offshore loading and unloading; mooring and anchoring; and active heave-compensated cranes • NCE Energy and Emissions Trading is dedicated to tackling changes in business conditions, market designs and policy instruments that pose significant challenges for the energy industry • NCE Subsea focuses on markets for maintenance, modification, and operation as well as innovative and leading edge technical products.
The preferred subsea partner Building a future under water
At Aker Solutions’ service base at Ågotnes outside Bergen, we have pooled some of the foremost operational subsea expertise in the world, with specialists in charge of management and installation projects as well as operations and maintenance assignments for the North Sea sector. Our team comprises 420 highly qualified engineers, technicians and operators, offering unique expert knowledge in their specialist fields. The growth experienced over the past few years has been significant, and with new contracts secured for the Goliat, Trym and Oselver fields in 2009 this trend is set to continue in 2010 and beyond. © Copyright 2010 Aker Solutions. All rights reserved. Design by maritimecolours.no
High pressures, utter darkness and strong sea currents place enormous strain on deep-sea installations and equipment. Still, this is where we feel comfortable – this is our element. For over 75 years, Aker Solutions has developed innovative solutions for the petroleum industry. Aker Solutions is a leading subsea company with a portfolio combining the most advanced technology with innovative operations and management models.
www.akersolutions.com/subsea
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Advanced technology, dedicated service Cargotec is a world-leading provider of integrated MacGregor marine and subsea load handling systems. Comprehensive MacGregor solutions for subsea load handling, anchor handling, towing and mooring operations optimise overall functionality of a specific ship type, assuring efficiency and full control over critical missions. Cargotec’s global service network enables us to support your ships wherever they operate, ensuring the continuous, reliable and sustainable performance of equipment. Cargotec improves the efficiency of cargo flows on land and at sea – wherever cargo is on the move. Cargotec’s daughter brands, Hiab, Kalmar and MacGregor are recognised leaders in cargo and load handling solutions around the www.cargotec.com
www.macgregor-group.com
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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 ® www.deepoffshoretechnology.com
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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
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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
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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. 2% 11%
Primary Job Function/Responsibility Management (CEO, Pres, VP) Engineering/Technical/Geoscience Other (Please Specify) Purchasing/Consulting Superintendent/ Field Professional/Foreman
19%
45%
23%
Type of Company or Organization Service/Supply Engineering/Construction Oil/Gas Company Other (Please Specify) Consulting Company Contractor Government/Library/Education Financial
5%
2%
9% 22%
13%
19% 15%
Areas of Interest Subsea Technology Floating Production Systems Flowlines & Pipelines Field Development Construction / Installation Inspection & Monitoring Drilling / Well Construction Flow Assurance Mooring / Station-Keeping Field Development Shipyard / Fabrication Yard Exploration Other
15%
2% 4% 5%
16%
5% 6%
12%
6%
6% 11% 7% 10% 10%
10%
Purchasing Authority Recommend None Approve Specify
34% 24%
32%
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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
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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 Netherlands, Northern Europe & Middle East T: +44 (0) 1992 656 651 F: +44 (0) 1992 656 700 E:
[email protected]
Ana Monteiro Southern & Eastern Europe & Africa T: +44 (0) 1992 656 658 F: +44 (0) 1992 656 700 E:
[email protected]
Sue Neighbors Americas T: +1 713 963 6256 F: +1 713 963 6212 E:
[email protected]
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DOT INTERNATIONAL 2011
Floorplan
FOYER
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Exhibit sales and corporate sponsorship contacts Sue Neighbors Americas T: +1 713 963 6256 F: +1 713 963 6212 E:
[email protected]
Jane Bailey Northern Europe & Middle East T: +44 (0) 1992 656 651 F: +44 (0) 1992 656 700 E:
[email protected]
Michael Yee South East Asia T: +65 9616 8080 F: +65 6734 0655 E:
[email protected]
Ana Monteiro Southern & Eastern Europe & Africa T: +44 (0) 1992 656 658 F: +44 (0) 1992 656 700 E:
[email protected]
For more information about participating at DOT INTERNATIONAL 2011
Fax back this form to +44 (0) 1992 656 700 I would like more information:
Name
Attending DOT INTERNATIONAL 2011 as an individual/corporate delegate
Title:
Opportunity to present a paper for DOT INTERNATIONAL 2011 conference Exhibiting at DOT INTERNATIONAL 2011
Company:
Marketing and sponsorship opportunities at DOT INTERNATIONAL 2011
City: Post Code: Country:
PLEASE INDICATE
PLEASE PRINT CLEARLY
Address:
Advertising in DOT International official Magazines: Offshore. Oil & Gas Journal and/or the DOT INTERNATIONAL 2011 Show Guide DOT INTERNATIONAL is a PennWell Corporation event Please tick the relevant box if you DO NOT wish to receive information about: DOT INTERNATIONAL Other PennWell Corporation products Carefully selected third parties
Tel: Fax: Email:
8 : ( #
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16TH EDITION CONFERENCE & EXHIBITION 24 - 26 JANUARY 2012 INTERNATIONAL CONFERENCE CENTRE ABUJA, NIGERIA SUPPORTED BY
1,*(5,$11$7,21$/3(752/(80&25325$7,21
DEEPWATER TECHNOLOGIES FOR WEST AFRICA
CALL FOR PAPERS Deadline 15th April 2011
OWNED & PRODUCED BY
PRESENTED BY
SUPPORTING PUBLICATIONS
WWW.OFFSHOREWESTAFRICA.COM __________________________
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About Offshore West Africa Offshore West Africa, now in its 16th year of providing a platform for technology exchange and new business development, is the region’s premier technical forum focused exclusively on West Africa’s offshore oil and gas market. Nigeria is recognized as one of the most promising exploration regions and a leader within West Africa. The Offshore West Africa 2012 event theme – Deepwater Technologies for West Africa – perfectly conveys the message of the advancement of subsea and deepwater activities within this region of the world. Having Offshore West Africa take place in Nigeria is of high interest to national and international oil companies that are familiar with the outstanding conferences held by PennWell worldwide. These companies include operators such as Anadarko, ExxonMobil, Shell, TOTAL, Chevron, and others, as well as Chinese National Offshore Oil Co. (CNOOC), Petronas, Petrobras, Ghana National Petroleum Co. (GNPC), Nigerian National Petroleum Co. (NNPC) and others that have attended and taken part in past Offshore West Africa conferences. Offshore West Africa, presented by Offshore Magazine and supported by Oil & Gas Journal, is the only conference and exhibition dedicated to the offshore oil & gas industry in the region, more than 1,500 offshore professionals are expected to attend the three-day conference and exhibition.
Call for Papers The Advisory Committee of Offshore West Africa is now accepting abstracts for the Offshore West Africa 2012 Conference. We invite you to submit an abstract for Offshore West Africa 2012 and share your knowledge, experience and solutions with industry colleagues from around the world. To have your presentation considered for the technical session programme, please submit your 150 - 400 word abstract on one or more of the technical focus areas listed by 15th April 2011. You may submit your abstract online at: www.offshorewestafrica.com Abstract submittal deadline: 15th April 2011
Who will be your audience? Industry professionals, experts, engineering management, engineers, operations management, operations and maintenance from the oil and gas industries, including: • Industry leaders who seek information and technologies for future operations • Senior decision makers from international and regional operators • Oil and gas operating companies • Service and equipment suppliers • Engineering and construction companies • Contractors • Consultants
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Submittal Guidelines To submit an abstract for consideration by the Offshore West Africa Advisory board, please follow the procedures below: • Go to www.offshorewestafrica.com • Click on submit abstracts in the left navigation bar • Complete the required fields • Press submit or send • Relax, its now all done Please submit your abstract ONLY ONCE and wait for the automatic e-mail that confirms your submission was successful. Abstracts must have a title and list all authors. Please provide full contact information for the primary contact author (company affiliation, telephone, fax number and email address). Please designate which author will be the speaker. Presentations must be of interest and of practical value to executives, managers, engineers and operations personnel engaged in the offshore oil and gas industries. Papers will be selected based on a review of abstracts by the Offshore West Africa Advisory Board. Papers must not be commercial in nature.
Technical Focus Areas
Abstract submittal deadline: 15th April 2011
Field Development Conceptual Evaluation Field Development Planning Stranded Gas Field Developments Management Benchmarking Drilling Economics Integrated Solutions Logistics Project Execution and Management Operational Excellence / Risk Management Regional / Worldwide Drilling Issues Standards and Standardization Local Content Human Resource & Training Management and Supervision Operator / Contractor / Supplier Relationship Risers & Riser Technology Riser Systems Drilling Risers Production Risers Steel Catenary Risers Monitoring Subsea Technology Remote Subsea Tiebacks Subsea Intervention Subsea Trees, Manifolds & Templates Control Lines & Umbilicals
Your abstract should address one or more of the following areas: Abstract submittal deadline: 15th April 2011 Seabed Processing & Boosting Monitoring and Intervention Floating Production Systems Concepts & Developments Innovative Floating Production Concepts Topsides Installation Environmental Concerns Vessel Respoonse Monitoring Construction/Installation Disconnectable FPS Systems Mobile Offshore Drilling Units Automated Drilling Rigs / Systems Mobile Offshore Drilling Units Tender Assist Drilling Combination Drilling / Production Units New Builds / Renewals / Upgrades Rig Design Rig Specifications / Regulations Data Collection/Communication Communication Systems Data Analysis / Computer Applications Decision Support Real Time Data Management Sensors and Data Quality Real-time Integrity Monitoring Flow Assurance Flow Assurance Issues Hydrate Inhibitors Leak Detection Pipe in Pipe Injection Network Design Flowlines & Pipelines Rigid & Flexible Pipelines, Flowlines & Risers Pipeline Construction/Installation Deepwater Pipeline Repair Pipeline Connectors/Manifolds PLEMS Design Concepts
Mooring & Station-keeping Anchors & Moorings Seafloor Challenges Materials & Design Disconnect/Reconnect Drilling Operations Deep Drilling Drilling with Casing or Liners High Temperature, High Pressure Drilling Hostile Environments Managed Pressure Drilling Riserless Drilling Seismic While Drilling (SWD) Slimhole Drilling Surface BOP Operations Through-Tubing Rotary Drilling Underbalanced Drilling Completions Expandable Screens Extended Reach Completions Horizontal Completions Intelligent Completions Multilateral Completions Sand Control Subsea Completion Well Construction Expert Drilling System / Drilling Optimization Extended Reach Drilling Geosteering Horizontal Drilling Multilateral Drilling MWD/LWD Rotary Steerable Systems BOPs and Well Control Equipment Casing Running Drilling Automation Instrumentation Subsea Equipment
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Contact Details / Fax Back Form Conference Manager Niki Vrettos Phone: +44 (0) 1992 656 630 Fax: +44 (0) 1992 656 700 Email:
[email protected]
Marketing Manager Lee Catania Phone: +44 (0)1992 656 647 Fax: +44 (0)1992 656 700 Email:
[email protected]
Exhibit and Sponsorship Sales (Europe, Africa & Middle East)
Exhibit and Sponsorship Sales (Nigeria)
Ana Monteiro Phone: + 44(0) 1992 656 658 Fax: +44 (0) 1992 656 700 Email:
[email protected]
Dele Olaoye Phone: +234 802 223 2864 Fax: +234 805 687 2630 Email:
[email protected]
Exhibit and Sponsorship Sales (South East Asia)
Exhibit and Sponsorship Sales (The Americas)
Michael Yee Phone: +65 9616 8080 Email:
[email protected]
Desiree Reyes T: +1 713 963 6283 F: +1 713 963 6212 E:
[email protected]
WWW.OFFSHOREWESTAFRICA.COM _________________________
U Exhibiting at Offshore West Africa 2012
For Further information complete and fax back to + 44 (0) 1992 656 700 PLEASE PRINT CLEARLY
U Sponsorship Opportunities at Offshore West Africa 2012
Name: Title: Company: Address:
U Advertising in the Offshore West Africa 2012 Show Guide PLEASE INDICATE
PLEASE PRINT CLEARLY
PLEASE INDICATE: Please send me information about:
U Making a presentation at Offshore West Africa 2012 U Advertise in Flagship Media Sponsors: Offshore / Oil & Gas Journal U Attending Offshore West Africa 2012 U Booking a Corporate Plan for Attending Offshore West Africa 2012 conference (if sending more than 5 people)
City: Post Code: Country: Tel: Fax: Email:
Offshore West Africa is a PennWell Corporation event. Please tick the relevant box if you DO NOT wish to receive information about: U Offshore West Africa U Other PennWell Corporation products U Carefully selected third parties U would prefer to be contacted by: U Email U Fax U Telephone U Mail
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6th Annual Conference & Exhibition 29 - 31 March 2011 Sands Expo & Convention Center Marina Bay Sands, Singapore www.offshoreasiaevent.com
EMERGING TRENDS. CURRENT SOLUTIONS. REGISTER TODAY In the current climate a reliable, industry leading source of information is needed to show the direction and future opportunities for the industry – Offshore Asia Conference & Exhibition 2011 is that leader. An exclusive source of information for the industry for over 5 years, the event provides a unique platform for success. Whether you seek the latest product enhancing solutions or an exclusive insight into future market trends Offshore Asia has it covered. Be part of THE event that brings together the people, products, and information that drives the industry forward.
For more information please visit:
www.offshoreasiaevent.com
Owned & Produced by:
Flagship Media Sponsors:
Supported/Endorsed By:
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BUSINESS BRIEFS
People CRC-Evans has appointed Douglas McIntyre as CEO. The company has also appointed Adam Wynne Hughes as MD of the company’s Inspection Group. Hughes, who served as IPLOCA president from 2009-2010, joins CRC-Evans when the PIH
Meijer (left), Carey (right) and Hughes (middle)
Field Joint Coating division and Inspection Group form one of the business units within CRC under the leadership of Phil Bond, the current IPLOCA director for NW Europe. Hughes will work with Carl Vincent, senior VP at Pipeline Induction Heat Ltd., to develop a wider range of services while maintaining the individual market area disciplines. Nautronix has appointed David Cassie as director of strategy. Cassie will consult on a part-time basis to promote Nautronix and its technology in subsea positioning and communication. His focus will be on raising the awareness of the NASNet positioning systems. He also will devote time to aid the management team to grow new business and to expand internationally. SeeByte has added Pedro Patron, Joerg Baumgartl, and Sorin Suciu to its engineering staff. Fugro Gravity & Magnetic Services has appointed Emily Farquhar as president. CSL has appointed Charlie Hughes as projects manager. Total has appointed Patrick Pouyanne as Farquhar deputy general manager of the chemicals division and deputy general manager of petrochemicals. The company has also appointed Olivier Cleret de Langavant as senior VP of strategy, business development, and R&D in exploration and production; Isabelle Gaildraud as senior VP of finance and information systems in addition to her current role as senior VP of HR and internal communication in exploration and production; Marc Blaizot as senior VP of exploration; and Pierre Bang as senior VP of operations in exploration and senior VP delegate for the scientific and technical center in Pau, France.
Fluor Corp. has appointed David T. Seaton as CEO and company director. He succeeds Alan L. Boeckmann, who is retiring. Boeckmann will continue to serve as non-executive chairman of the board of directors. SBM Offshore has appointed Bruno Chabas as COO and a director of the company’s board of management. The company has also named Jean-Philippe Laurès chief commercial officer and a director. National Subsea Research Institute (NSRI) has appointed David Pridden as CEO. Solomon Associates has promoted Stephen Wright to VP of Europe and Middle East operations effective April 1. He Pridden also will serve as MD of Solomon Associates Ltd., the company’s UK entity. Wright succeeds Lawrence (Lawrie) Anness, who retires after a four-decade career that includes 21 years with Solomon Associates. First Subsea has appointed Phil Day as sales manager for North and South America. Day will be responsible for developing the market for First Subsea’s growing range of subsea connectors used in deepwater mooring, diverDay less, and ROV-less riser and umbilical connections, and other offshore applications. Emerson Process Management has appointed Chuck Miller as global director of sales and marketing. He will be responsible for strategic planning, organizational Miller development, sales, and marketing leadership of value added technology solutions within the oil and gas business unit. Geoimage has appointed Wayne Middleton as CEO. Middleton will be based in Geoimage’s Brisbane office, where he will be involved in new business opportunities as well as managing the company’s day-to-day operations. AWE has appointed Bruce Clement as MD. He replaces Bruce Wood, who has retired. McCrometer has appointed Ray Loo as regional sales manager for Southeast Asia. Prospectiuni has appointed Andrew Clark as VP for business development, marketing, and strategy. In his new role, Clark
will identify and negotiate new markets and opportunities for the company’s geophysical and geological services. The company has also named Tim Branch as VP of international operations. CHC Helicopter has appointed Duncan Trapp as director of safety and quality for its European operations. Trapp will be based in the company’s Aberdeen office. Mustang has named Michele McNichol as Trapp president of its upstream operations. McNichol has oversight of worldwide upstream operations with offices in London, Houston, Abu Dhabi, Mumbai, Saudi Arabia, Angola, Aberdeen, and Kuala Lumpur. Eric Wensel has been named upstream regional direcMcNichol tor – Americas. The International Marine Contractors Association (IMCA) has appointed Andy Woolgar, VP - group projects and operations at Subsea 7, as president. In addition Woolgar becomes chairman of the association’s Wensel overall management committee (OMC). Massimo Fontolan, VP Commercial North Atlantic for Saipem, takes over as VP. Chevron Corp. has appointed James Blackwell as executive VP, technology and services. The company has named Rhonda Zygocki executive VP, policy and planning; Steve Green, VP, policy, government, and public affairs; Wes Lohec, VP, health, environment, and safety; and, Chuck Taylor, VP, strategic planning. The company has also named Guy Hollingsworth as VP, production and James (Jay) Johnson as president, Chevron Eurasia, Europe, and Middle East Exploration and Production Co. Melody Meyer will become president, Chevron Asia Pacific Exploration and Production Co. L&N (Scotland) has appointed Craig Finnie as operations director and Mike McArtney as business development director. Finnie has been with L&N for nine years, most recently as operations manager, and will have responsibility for all operational matters. McArtney will focus on business development in the North Sea sector and international markets. Williams has appointed Phil Wright as senior VP of corporate development. Randy
102 Offshore March 2011 • www.offshore-mag.com
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BUSINESS BRIEFS
Barnard will succeed Wright as head of the company’s gas pipeline business. Fugro Multi Client Services has appointed Lucy Plant as international marketing manager. Plant comes to Fugro Multi Client Services from Fugro Robertson, where she was business development manager for Plant the Americas for the past three years. ABS has named Todd Grove as chief technology officer. John McDonald, currently regional VP, Northern Europe and Africa, will succeed Grove as president and COO of the ABS Europe Division. John Gallagher, currently regional VP, North America, will transfer to London and assume the position of regional VP, Northern Europe. Thomas Blenk, currently VP of global operations, ABS Nautical Systems (NS) Division, will transfer to New York City and replace Gallagher. Demetri Stroubakis, currently regional VP, Eastern Europe, will transfer to Houston and replace Blenk. Vassilios Kroustallis, currently country manager for Greece, will replace Stroubakis. Christos Nomikos, currently principal surveyor for Greece, will replace Kroustallis. Mustang has appointed Gordon Stirling as regional director for Europe, North Africa, Middle East, India, and Russia. The company has also named Chet Nelson as regional director for Asia/Pacific. Stirling The regional directors will facilitate and direct business activities for all markets served by Mustang, providing for efficient and coordinated operations across all of the company’s business units. Atwood Oceanics Inc. Nelson has appointed Arthur M. Polhamus as VP of Operations. Qatar has appointed Mohammed Saleh al-Sada as its new energy minister. Al-Sada has been MD of state-owned RasGas, which has a partnership with ExxonMobil. He replaces Abdullah bin Hamad al-Attiyah, who remains deputy prime minister. W&T Offshore has appointed Jesus G. Melendrez as senior VP and chief commercial officer. Transocean has appointed Nick Deeming as senior VP, general counsel, and as-
sistant corporate secretary. Eric B. Brown, currently in that role, will transition to the company’s Houston office, primarily leading the company’s Macondo litigation. Bahamas Petroleum has named Dr. Paul Crevello CEO. He replaces Alan Burns, who will remain as non-executive chairman of the company. ERM has appointed Maximo Hernandez as global oil and gas managing partner. Hernandez will develop and lead ERM’s strategies in oil and gas and support consultants as they advise major clients on the impacts and alternatives resulting from the rapidly changing environment.
Company News Baker Hughes has opened a new drill bit manufacturing plant in Saudi Arabia. The facility consolidates all the manufacturing processes for polycrystalline diamond compact (PDC) bits in Saudi Arabia. At full capacity, the facility will employ approximately 80 people. American Pollution Control Corp. (AMPOL) has moved to an expanded nineacre location in New Iberia, Louisiana. The facility houses 150,000 sq ft (13,935 sq m) of warehouse space, a training facility, an operations center, a state-of-the-art lab, a fully equipped maintenance shop, and administrative offices. The facility also features a 10-bay truck dock allowing for more efficient loading of emergency response equipment. Reser voir Group (RG) has expanded its operations in the US after forming an alliance with The Mudlogging Co. (TMC), a Houston-based company specializing in surface logging services. TMC joins Reservoir Group’s RG Geo business unit which will focus on formation evaluation. TMC owners George Drewry, Ron Lato, and Doug Kneis will continue to manage the company and assist in RG Geo’s development. Tritex NDT has appointed Jack Vilas & Associates Inc, based in Morgan City, Louisiana, as a new distributor in the US to help promote and support the sale of its Multigauge ultrasonic thickness gauges.. National Training Institute (NTI) is to form a joint venture in Saudi Arabia with Saudi oil and gas construction company Mohammad Al Mojil Group (MMG) . The company says that through the new venture, it will provide state-of-the-art vocational training solutions tailored to the health, safety, and environment needs and technical standards of oil and gas service companies. MMG, which employs over 23,000 personnel, has over 50 years’ experience in the construction industry, while NTI – a subsidiary of Oman-based Renaissance Services SAOG – brings 25 years’ experience in education and training. Ensco Plc and Pride International
Inc. have entered a merger agreement. Ensco will combine with Pride in a cash and stock transaction at the end of which Pride will hold 38% of Ensco’s outstanding shares. The estimated combined value is $16 billion. The transaction will result in the second largest offshore driller with 74 rigs. Specialist Subsea Ser vices has acquired Caledonian Geotech. Specialist Subsea provides ROV and survey services. Caledonian Geotech is a geosciences consultancy. HB Rentals has been awarded a sixmonth, $2.5-million contract to provide accommodations, auxiliary equipment, and communication systems for five barges working along the Gulf Coast. The accommodations include complete living quarter packages consisting of sleepers, galleys, diners, offices, recreation rooms, and utility buildings as well as power generation, sewage, potable water and communication systems. Saudi Aramco has completed its new Upstream Professional Development Center (UPDC). The facility in Dhahran will house an updated integrated training program for the company’s upstream personnel. Paradigm scheduled the opening of a new office in the Oslo, Norway, business district of Skoyen for Feb. 15, 2011. The new office will help the company provide local sales and support services for its seismic imaging, interpretation, reservoir modeling and characterization, and data management solutions. GE has completed its $3 billion acquisition of Dresser Inc. Dresser has 6,300 employees worldwide and delivers compression, flow technology, measurement, and distribution infrastructure and services to customers in more than 150 countries. The Dresser businesses will be integrated into GE’s Energy Services and power and water business units. Chevron Australia has awarded ICON Engineering a $5.5-million contract to build a compensated tension lift frame (CTLF) for use during the upcoming drilling and completion program for the Gorgon Project. Aker Solutions has sold principal operations within its process and construction business area to Jacobs Engineering Group Inc. (Jacobs). The transaction does not include the US EPC center in Houston or the Union Construction in the US and Canada, which will all be part of the new Aker Contractors company. Aker Solutions retains Aker Projects (Shanghai) Co. until such time as the requisite regulatory clearances in China have been obtained. With the sale of these businesses to Jacobs and the transfer of the Union Construction and EPC Center US operations to the new Aker Contractors company, Aker Solutions’ P&C business area has now been dissolved. www.offshore-mag.com • March 2011 Offshore 103
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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 insertions. 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:
[email protected] • No special position available in classified.
C O N S U LTA N T S Brazil: EXPETRO can be your guide into this new investment frontier. Effective strategic analysis, quality technical services, compelling economic/regulatory advice, and realistic approach regarding Brazilian business environment - 120 specialists upstream, downstream, gas and biofuels. Email:
[email protected] Web: www.expetro.com.br -Rio de Janeiro, Brazil
EMPLOYMENT
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 suited to meet your budget and objectives. | Learn More | Visit: www.PennEnergyJOBS.com Call: 1-800-738-0134
104 Offshore March 2011 • www.offshore-mag.com
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15TH EDITION CONFERENCE & EXHIBITION 15 - 17 MARCH 2011 INTERNATIONAL CONFERENCE CENTRE ACCRA I GHANA
DISCOVER NEW FRONTIERS IN WEST AFRICA
INVITATION TO ATTEND Offshore West Africa Conference & Exhibition 2011 would like to invite you to attend the premier technical forum focused exclusively on West Africa offshore exploration and production. The 15th annual Offshore West Africa Conference & Exhibition will be held in Accra, Ghana at the International Conference Centre on 15 – 17 March 2011. Offshore West Africa remains the leading source of information on new technology and operating expertise for this booming deepwater and subsea market and is the most significant offshore Africa deepwater technology event in the world, making Offshore West Africa 2011 an event you cannot afford to miss.
WHY ATTEND OFFSHORE WEST AFRICA? • A unique audience of the world’s leading executives, managers and engineers from major and independent E&P companies focusing on West Africa’s specific requirements • A world-class two-track technical conference program • An exhibition showcase of technology and capabilities to support improvements in African E&P operations • Expert opinions on the new issues, challenges and solutions associated with the expanding African exploration & production activity
REGISTER ONLINE AT: WWW.OFFSHOREWESTAFRICA.COM __________________________________
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:::2))6+25(2,/,1',$&20 _____________________
:::81&219(17,21$/2,/$1'*$6,1',$&20 ________________________________
INVITATION TO EXHIBIT Addressing the needs of the Indian market, the inaugural Offshore India and Unconventional Oil & Gas India is a unique forum for companies interested in the Indian oil and gas industry. A world class conference and rich exhibition of services and equipment will attract decision-makers eager to meet you and learn what your business offers. Including these premier events as a key component of your company’s marketing strategy ensures one-on-one access to key industry professionals. For more information on exhibiting please contact:
MERGING TECHNOLOGIES
ENABLING
SUCCESS 14 - 16 SEPTEMBER 2011 MUMBAI, INDIA, BOMBAY EXHIBITION CENTRE
PRESENTED BY:
India Siddharth Chibba T: +91 124 452 4200 / 452 4201 F: +91 124 438 1162 E:
[email protected]
Rest of the World Jane Bailey T: +44 (0) 1992 656 651 F: +44 (0) 1992 656 700 E:
[email protected]
US Peter Cantu T: +1 713 963 6213 F: +1 713 963 6212 E:
[email protected]
Rest of the World John Bulmer T: +44 (0) 1992 656 681 F: +44 (0) 1992 656 700 E:
[email protected]
US Desiree Reyes T: +1 713 963 6283 F: +1 713 963 6212 E:
[email protected]
South East Asia Michael Yee T: +65 9616 8080 E:
[email protected]
CO-ORGANIZED BY:
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ADVERTISERS INDEX A
SALES OFFICES PENNWELL PETROLEUM GROUP 1455 West Loop South, Suite 400, Houston, TX 77027 PHONE +1 713 621 9720 • FAX +1 713 963 6228 David Davis (Worldwide Sales Manager)
[email protected] Bailey Simpson (Regional Sales Manager)
[email protected] Glenda Harp (Classified Sales)
[email protected] GREATER HOUSTON AREA, TX David Davis
[email protected] USA • CANADA Bailey Simpson
[email protected] UNITED KINGDOM • SCANDINAVIA • THE NETHERLANDS 9 Tarragon Rd. Maidstone, Kent, United Kingdom ME16 OUR PHONE +44 1622 721222 • FAX +44 1622 721333 Roger Kingswell
[email protected] FRANCE • BELGIUM • PORTUGAL • SPAIN • SOUTH SWITZERLAND • MONACO • NORTH AFRICA Prominter 8 allée des Hérons, 78400 Chatou, France PHONE +33 (0) 1 3071 1119 • FAX +33 (0) 1 3071 1119 Daniel Bernard
[email protected] GERMANY • NORTH SWITZERLAND • AUSTRIA • EASTERN EUROPE • RUSSIA • FORMER SOVIET UNION • BALTIC • EURASIA Sicking Industrial Marketing, Kurt-Schumacher-Str. 16 59872 Freienohl, Germany PHONE +49 (0) 2903 3385 70 • FAX +49 (0) 2903 3385 82 Andreas Sicking
[email protected] ITALY SILVERA MEDIAREP Viale Monza, 24 - 20127 Milano, Italy PHONE +39 (02) 28 46716 • FAX +39 (02) 28 93849 Ferruccio Silvera
[email protected] BRAZIL / SOUTH AMERICA Grupo Expetro/SMARTPETRO, Ave. Erasmo Braga 227, 11th floor Rio de Janeiro RJ 20024-900, BRAZIL PHONE +55 (21) 2533 5703 or +55 (21) 3084 5384 FAX +55 (21) 2533 4593
[email protected], Url
[email protected] Marcia Fialho
[email protected] JAPAN ICS Convention Design, Inc. 6F Chiyoda Bldg., 1-5-18 Sarugakucho Chiyoda-Ku, Tokyo 101-8449, Japan PHONE +81 3 3219 3641 • FAX +81 3 3219 3628 Manami Konishi
[email protected] SINGAPORE 19 Tanglin Road #05-20 Tanglin Shopping Center Singapore 247909 PHONE +65 9616 8080 • FAX +65 6734 0655 Michael Yee
[email protected] INDIA Interads Ltd., A-113, Shivalik, New Delhi 110 017 PHONE +91 11 628 3018 • FAX +91 11 622 8928 Rajan Sharma
[email protected] NIGERIA/WEST AFRICA Flat 8, 3rd floor (Oluwatobi House) 71 Allen Ave, Ikeja, Lagos, Nigeria PHONE +234 805 687 2630 or +234 802 223 2864 Dele Olaoye
[email protected]
Aker Solutions .....................................21, 87 www.akersolutions.com/subsea
B Baker Hughes ..............................................7 www.bakerhughes.com Bennex AS ..................................................80 www.bennex.com
NCE Subsea.. ....................................... 82-83 www.ncesubsea.no Newpark Drilling Fluids.. .............................1 www.newparkdf.com
O
Cameron .......................................................9 www.c-a-m.com Cargotec .....................................................88 www.cargotec.com
Offshore Mediterranean Conference 2011 ........................................29 www.omc.it Offshore Technology Conference 2011 ........................................25 www.otcnet.org/2011 Oil and Gas Asia 2011 .. .............................31 www.oilandgas-asia.com Orr Safety Corporation .. ...........................35 www.orrsafety.com/kong
D
P
Danos & Curole Marine Contractors ........75 www.danos.com Dril-Quip .................................................... C3 www.dril-quip.com
PennWell Deep Offshore Technology Conference & Exhibition .......... 51, 89-96 www.deepoffshoretechnology.com Offshore Asia Conference & Exhibition ............................................ 101 www.offshoreasiaevent.com Offshore India Conference & Exhibition ............................................106 www.offshoreoilindia.com Offshore West Africa Conference & Exhibition ............................... 97-100, 105 www.offshorewestafrica.com OGMTNA Conference & Exhibition ...121 www.ogmtna.com Oil & Gas Journal Site License............14 www.oilsandtechnologies.com Pile Dynamics, Inc. ....................................57 www.pile.com Polarcus......................................................45 www.polarcus.com Postle Industries, Inc. ................................53 www.postle.com
Bollinger Ship Yards, Inc. ..........................68 www.bollingershipyards.com
C
E Emerson Process Management .................3 EmersonProcess.com/Experience ESAB Welding & Cutting Products ..........37 esabna.com
F Ferguson Modular Ltd......... ......................15 www.fergusonmodular.com FMC Technologies........ ...................... 15, C4 www.fmctechnologies.com
G GE Oil & Gas........ ......................................19 www.geoilandgas.com Global Industries........ ...............................13 www.globalind.com Greater Lafourche Port Commission........64 www.portfourchon.com
H Hornbeck Offshore Services, Inc..............71 www.hornbeckoffshore.com Hytorc..........................................................33 www.hytorc.com
I Intermoor ....................................................70 www.intermoor.com IPLOCA .......................................................58 www.iploca.com
M M-I Swaco. ..................................................67 www.miswaco.com M&D Industries ..........................................73 www.ultrasealinc.com Magnetrol ................................................... 11 magnetrol.com Manson Gulf, LLC. .....................................76 www.mansonconstruction.com
R Rolls-Royce Marine....................................60 www.rolls-royce.com
S Schlumberger ........................................... C2 www.slb.com/Quartet Seabird Exploration ...................................57 www.sbexp.com Sercel ..........................................................27 www.sercel.com Strategic Marine Pty Ltd............................14 www.strategicmarine.com
V Varel International......................................17 www.Downhole.org/zerofail
W Weatherford..............................................4, 5 weatherford.com Williamson and Rusnak ............................47 www.jimmywilliamson.com
N National Oilwell Varco................................23 www.nov.com
The index of page numbers is provided as a service. The publisher does not assume any liability for error or omission.
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BEYOND THE HORIZON
Project success hinges on FEED completion With billions of dollars in shareholder value at stake, operating companies know they need to do everything they can to ensure successful projects. One of the most important phases in a project is a complete and adequate front-end engineering design (FEED). This is fairly well known in the industry but often not done well. To ensure a complete and adequate FEED, many operating companies use a stage-gate process that provides a degree of assurance for upper management that shortcuts are not taken and important steps are not missed as a project progresses. Failure to do so can result in a project business failure or disappointment. Executive management in the investing companies wants the team to do what it says it is going to do, with no surprises. Still, many times the FEED work is not done adequately. In a recent newsletter, IPA (Independent Project Analysis) reported that only 40% of projects completely finish Front End Loading II decision gate before moving forward. Sometimes post project “lessons learned” are conducted with key project personnel, including contractors, and reasons for disappointing results are documented. In the past, these reasons have included things like: the engineering was delayed; we did not have the information needed; the vendors delivered late; the fabricator could not find adequate personnel; the market changed and equipment and materials were more expensive than we thought; or the derrick barge was late in completing the previous job and could not mobilize when we needed it. These are not satisfactory excuses when shareholders are losing value. Most of the issues can be traced to inadequate front-end engineering and planning. What can be done to improve this situation? Some companies have learned the hard way and rigorously follow a stage-gate process that clearly spells out what must be completed at the end of each stage, and the risks going forward. The only way this can work is if top management buys into the importance of completing the front-end design. Management should be willing to slow down the project if the information required for each stage is not complete. The results after each stage must be of such quality that they will stand the test of time, without changing the business outcome. Otherwise, one might as well throw dice to predict the outcome. The reasons why a company might overlook or not complete the FEED are complex. Sometimes this has to do with inexperience. It could be that incentives are an issue. Often times there is disincentive inherent in the system, preventing people from doing things right and encouraging otherwise well-meaning people to rush the details. The roots of the problem take hold early on. An oil discovery is
made. It hits the press and the company declares it commercial. A first oil date is set and future earnings are forecasted based on future production. The stock price goes up and all is well. So, we have a deadline: the first oil date. We have a set of uncertainties and challenges that need to be addressed, since it is still very, very early in project development. We have a powerful incentive to ensure that everything is progressing on schedule. If it is publicized that the project is behind schedule, the stock price can be negatively affected. No one wants that to happen. If many unforeseen issues arise after the initial announcement, it can be very tempting to become undisciplined when it comes to following the company’s stage-gate roadmap. This pressure, coupled with the loss of discipline in the stage-gate process, often leads to poor results. As the responsibilities for the project execution get distributed down through the hierarchy of the company, the pressure to prioritize the schedule over the execution gets distributed down the line and magnified. For the individual on the technical staff, there is often more career risk than reward in pushing back on management. Often, top management does not understand the consequences of moving ahead before each phase of the work is complete. Often, there is a powerful incentive for middle managers never to raise these concerns with top management. He might get told, “If you cannot do it, we will get someone who can.” As a result, everything will seem hunky-dory until the chickens come home to roost and everyone starts looking for a scapegoat. Then, everyone scrambles for cover and sometimes even management cannot figure out what went wrong. Companies need to train their top managers (though ideally they learned these lessons on their way up the ladder), train middle managers, and train personnel assigned to project work that the stagegate process gets thoroughly completed at each stage. The stagegate process is a requirement, not an option. Individuals need to feel free to blow the whistle when things are not right and be rewarded, not punished, for their actions. When an issue arises, managers need to accept the truth and take it up the ladder. And presidents need to address the issues with the analysts. If this is strict company policy, I would guess that front-end engineering work would be respected, planned for, and funded, thus preventing potential project business failures and embarrassing corrections to the market paid for by the shareholders.
Norb Roobaert, PE
Chairman Alliance Wood Group Engineering LP
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
[email protected].
108 Offshore March 2011 • ___________ www.offshore-mag.com
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Driven by SEM 600 electronics, FMC’s smart subsea controls and data management technology accumulates and performs real-time analysis on vast amounts of data. That means you can make better decisions to increase oil recovery in the most complex subsea operations, both day-to-day and over the life of the field. And you’ll have the confidence of working with the leader in subsea controls and data management, with over 1,500 systems installed worldwide. See how smart it is at www.fmctechnologies.com/smartcontrols
We put you first. And keep you ahead. www.fmctechnologies.com © 2011 FMC Technologies. All rights reserved.
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