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

For continuous news & analysis

www.offshore-mag.com

July 2009

World Trends and Technology for Offshore Oil and Gas Operations

Emerging giant off Brazil

Jackup market
challenges increase

Resolving ‘Big Three’

to improve recovery

Click here
to access E : kup
Spring Energy 2009 S ID jac r
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Catalogue rld igs p
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𰀳𰁊𰁊𰁗𰁌𰁓𰁖𰁉𰀄𰁈𰁖𰁍𰁐𰁐𰁍𰁒𰁋𰀄𰁖𰁉𰁕𰁙𰁍𰁖𰁉𰁗𰀄𰁅𰀄𰁗𰁘𰁖𰁅𰁘𰁉𰁋𰁝𰀐𰀄𰁉𰁗𰁔𰁉𰁇𰁍𰁅𰁐𰁐𰁝𰀄𰁍𰁒𰀄
𰁘𰁓𰁈𰁅𰁝𰂫𰁗𰀄𰁉𰁒𰁚𰁍𰁖𰁓𰁒𰁑𰁉𰁒𰁘𰀄𰁛𰁌𰁉𰁖𰁉𰀄𰁘𰁌𰁉𰀄𰁛𰁖𰁓𰁒𰁋𰀄𰁑𰁓𰁚𰁉𰀄𰁇𰁅𰁒𰀄𰁆𰁉𰀄
𰁑𰁓𰁖𰁉𰀄𰁇𰁓𰁗𰁘𰁐𰁝𰀄𰁘𰁌𰁅𰁒𰀄𰁉𰁚𰁉𰁖𰀒𰀄𰀄𰀸𰁌𰁅𰁘𰂫𰁗𰀄𰁛𰁌𰁝𰀄𰁘𰁌𰁉𰀄𰁊𰁍𰁖𰁗𰁘𰀄𰁑𰁓𰁚𰁉𰀄
𰁗𰁌𰁓𰁙𰁐𰁈𰀄𰁆𰁉𰀄𰁘𰁓𰀄𰁐𰁓𰁓𰁏𰀄𰁊𰁓𰁖𰀄𰁅𰀄𰁇𰁓𰁑𰁔𰁅𰁒𰁝𰀄𰁛𰁍𰁘𰁌𰀄𰁛𰁓𰁖𰁐𰁈𰁛𰁍𰁈𰁉𰀄𰀄
𰁇𰁅𰁔𰁅𰁆𰁍𰁐𰁍𰁘𰁝𰀄𰁅𰁒𰁈𰀄𰁉𰁜𰁔𰁉𰁖𰁍𰁉𰁒𰁇𰁉𰀒𰀄𰀄𰀥𰁒𰁈𰀄𰁘𰁌𰁅𰁘𰂫𰁗𰀄𰀸𰁖𰁅𰁒𰁗𰁓𰁇𰁉𰁅𰁒𰀒
𰀸𰁖𰁅𰁒𰁗𰁓𰁇𰁉𰁅𰁒𰀄𰁌𰁅𰁗𰀄𰁑𰁓𰁖𰁉𰀄𰁉𰁜𰁔𰁉𰁖𰁍𰁉𰁒𰁇𰁉𰀄𰁈𰁖𰁍𰁐𰁐𰁍𰁒𰁋𰀄𰁈𰁉𰁉𰁔𰁛𰁅𰁘𰁉𰁖𰀄
𰁅𰁒𰁈𰀄𰁌𰁅𰁖𰁗𰁌𰀑𰁉𰁒𰁚𰁍𰁖𰁓𰁒𰁑𰁉𰁒𰁘𰀄𰁛𰁉𰁐𰁐𰁗𰀄𰁘𰁌𰁅𰁒𰀄𰁅𰁒𰁝𰁓𰁒𰁉𰀒𰀄𰀄𰀻𰁉𰀄𰁅𰁐𰁗𰁓𰀄
𰁌𰁅𰁚𰁉𰀄𰁘𰁌𰁉𰀄𰁐𰁅𰁖𰁋𰁉𰁗𰁘𰀄𰁅𰁒𰁈𰀄𰁑𰁓𰁗𰁘𰀄𰁈𰁍𰁚𰁉𰁖𰁗𰁉𰀄𰁊𰁐𰁉𰁉𰁘𰀄𰁍𰁒𰀄𰁘𰁌𰁉𰀄𰁛𰁓𰁖𰁐𰁈𰀐𰀄𰀄
𰁗𰁓𰀄𰁛𰁉𰀄𰁇𰁅𰁒𰀄𰁈𰁉𰁐𰁍𰁚𰁉𰁖𰀄𰁉𰁜𰁅𰁇𰁘𰁐𰁝𰀄𰁘𰁌𰁉𰀄𰁖𰁍𰁋𰀄𰁓𰁙𰁖𰀄𰁇𰁙𰁗𰁘𰁓𰁑𰁉𰁖𰁗𰀄𰁒𰁉𰁉𰁈𰀄
𰁛𰁌𰁉𰁒𰀄𰁅𰁒𰁈𰀄𰁛𰁌𰁉𰁖𰁉𰀄𰁘𰁌𰁉𰁝𰀄𰁒𰁉𰁉𰁈𰀄𰁍𰁘𰀒𰀄𰀄𰀥𰁒𰁈𰀄𰁛𰁉𰀄𰁓𰁔𰁉𰁖𰁅𰁘𰁉𰀄𰁍𰁒𰀄𰀄
𰁉𰁚𰁉𰁖𰁝𰀄𰁑𰁅𰁎𰁓𰁖𰀄𰁓𰁍𰁐𰀄𰁅𰁒𰁈𰀄𰁋𰁅𰁗𰀄𰁅𰁖𰁉𰁅𰀐𰀄𰁗𰁓𰀄𰁛𰁉𰀄𰁇𰁅𰁒𰀄𰁗𰁅𰁚𰁉𰀄𰁓𰁒𰀄𰀄
𰁑𰁓𰁆𰁍𰁐𰁍𰁞𰁅𰁘𰁍𰁓𰁒𰀄𰁅𰁒𰁈𰀄𰁈𰁉𰁑𰁓𰁆𰁍𰁐𰁍𰁞𰁅𰁘𰁍𰁓𰁒𰀄𰁇𰁓𰁗𰁘𰁗𰀄𰁛𰁓𰁖𰁐𰁈𰁛𰁍𰁈𰁉𰀒
𰀴𰁙𰁘𰀄𰁘𰁌𰁉𰁑𰀄𰁅𰁐𰁐𰀄𰁘𰁓𰁋𰁉𰁘𰁌𰁉𰁖𰀄𰁅𰁒𰁈𰀄𰁝𰁓𰁙𰀄𰁇𰁅𰁒𰀄𰁗𰁉𰁉𰀄𰁛𰁌𰁝𰀄𰀄
𰁑𰁓𰁖𰁉𰀄𰁅𰁒𰁈𰀄𰁑𰁓𰁖𰁉𰀄𰁇𰁙𰁗𰁘𰁓𰁑𰁉𰁖𰁗𰀄𰁌𰁅𰁚𰁉𰀄𰁐𰁉𰁅𰁖𰁒𰁉𰁈𰀄𰁘𰁌𰁅𰁘𰀄𰁘𰁌𰁉𰀄𰀄
𰁖𰁍𰁋𰁌𰁘𰀄𰁑𰁓𰁚𰁉𰀄𰁍𰁗𰀄𰁊𰁖𰁉𰁕𰁙𰁉𰁒𰁘𰁐𰁝𰀄𰁘𰁌𰁉𰀄𰁉𰁅𰁗𰁍𰁉𰁗𰁘𰀄𰁑𰁓𰁚𰁉𰀒𰀄𰀄𰀸𰁌𰁅𰁘𰂫𰁗𰀄𰀄
𰁛𰁌𰁝𰀄𰁘𰁌𰁉𰁝𰀄𰁇𰁅𰁐𰁐𰀄𰀸𰁖𰁅𰁒𰁗𰁓𰁇𰁉𰁅𰁒𰀒𰀄
𰀸𰁖𰁅𰁒𰁗𰁓𰁇𰁉𰁅𰁒𰀞𰀄𰀻𰁉𰂫𰁖𰁉𰀄𰁒𰁉𰁚𰁉𰁖𰀄𰁓𰁙𰁘𰀄𰁓𰁊𰀄𰁓𰁙𰁖𰀄𰁈𰁉𰁔𰁘𰁌𰀒𰂋𰀄𰀄

www.deepwater.com

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GE Oil & Gas

Full power
at your fingertips
GE Oil & Gas provides a complete range of power
generation solutions for both onshore and offshore
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imagination at work

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International Edition
Volume 69, Number 7
July 2009

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

LATIN AMERICA
Brazil’s Santos basin:
an emerging giant .............................. 28
Global research consultants Wood Mackenzie
has identified the key Brazilian infrastructure
projects ready to take shape as the country de-
velops the subsalt hydrocarbons of the Santos
basin over the next 20 years.

Tupi extended well test sheds light

on Brazil’s subsalt bonanza ............... 30
Brazil had another reason to celebrate its May
1 national Labor Day bash. The new reason

66
was the start-up of first oil at the mega Tupi
field in the Santos basin.

Offshore US-Mexico exploration: DRILLING & COMPLETION

Cross-border perspectives ................. 36 End of the rig construction boom .............................................................................. 52
In this first in a series for Offshore, we take a The global economic recession, decline in energy demand, and collapse last year of oil and gas prices
close look at the geopolitical and geotechnical mean the mobile offshore drilling unit (MODU) construction boom likely is coming to an end.
aspects/issues associated with cross-border
oil fields in the Gulf of Mexico.
2009 Worldwide MODU construction/upgrade survey .............................................. 54

Jackup count increases along with uncertainty ....................................................... 60

The global jackup rig fleet has grown significantly from January 2004 to May 2009. The rig count
GEOLOGY & GEOPHYSICS increased from 387 to 440 and is expected to add about 60 more before the year ends. However,
3D modeling illuminates 2009 expects to be a challenging year.
Brazil’s presalt geology ...................... 46
In the past three years, four of the eight big- Advances in rig design ............................................................................................... 62
gest oil discoveries in the world were in the The Aker H-6e design is for the largest and most advanced drilling semisubmersible ever built.
deepwater Santos basin of southern Brazil, The rig was designed for high operability in deepwater and harsh environments such as North
which includes the Tupi, Iara, Jupiter, and Atlantic, Barents Sea, GoM, and Asia/Pacific, with sufficient flexibility for operations in West
Guara oil fields. Africa and other milder areas.

AAPG, EAGE treated

to flurry of new, improved SUBSEA
products, services .............................. 50 Resolving ‘Big Three’ essential to increasing subsea production............................ 66
The geosciences continue to expand into the The systematic development of technologies that focus on the big three of “processing, power,
life-of-field arena by integrating an array of and pumping” hold the keys for maximizing the recovery of innumerable deepwater assets that
technologies. otherwise would remain stranded.

FLOWLINES & PIPELINES

Deepwater pipelines – Taking the challenge to new depths .................................... 70
To ensure continuity of supply, E&P companies have to consider opportunities in ever increas-
ing water depths. Assisting this are new technological advances, including pipeline manufacture
and design that increase the technical feasibility of deepwater developments.

Offshore (ISSN 0030-0608) is published monthly by PennWell, 1421 S. Sheridan Road, Tulsa, OK 74112. Periodicals class postage paid at Tulsa, OK, and additional offices. Copyright 2009 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 is-
sue (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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Get connected like you’re drilling across the street.

At CapRock, the quality of our offshore satellite communications rivals that of
many terrestrial communications providers. Thanks to superior quality of service,
reliability, customer service and responsiveness, CapRock stands alone in offshore
communications. In fact, our satellite services can help make your business
operations so efficient, you’d think you were drilling right across the street.

With CapRock, you have a wealth of resources working for you — more than
28 years of experience, the most expertise in offshore energy applications, 24/7
support around the globe and a full range of services to meet your every need.

All to ensure that your employees communicate like they were face to face —
even if they are worlds apart.

w w w.c a p ro c k .c o m
_______________ RELIABILIT Y TO THE E XTREME™

©2009 CapRock Communications, Inc. All rights reserved.

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International Edition
With the right Volume 69, Number 7
July 2009
protection, any
environment is COVER: Pride International is
partnering with Petrobras to explore the
the ideal storage subsalt layer offshore Brazil which is
estimated to hold 5-8 Bboe. Pride Inter-
environment. national’s DP semisubmersible Pride Rio
de Janeiro, pictured on the cover drilling
offshore Brazil in the Espírito Santo ba-
sin, is one of seven Pride rigs contracted
to Petrobras. All are committed through
various dates from 2011 to 2017. An
eighth Pride rig will join the fleet this
fall, under contract to OGX. Complete
coverage of E&P offshore Brazil begins
on page 28. Photo by Ken Childress and
courtesy of Pride International.

When you’re storing

oilfield equipment, it SWEDEN
has to be done right. Swedish fabricator back from the brink under Leirvik’s stewardship..................... 74
When Emtunga Offshore was declared bankrupt last year, it seemed like the end of an era. But a
Mothball your oilfield equipment, significant part of the accommodation module specialist is back in business as Leirvik Emtunga
and conditions can be harsh – LQ, a wholly owned subsidiary of former rival Leirvik Module Technology of Norway.
corrosion, moisture, grit, even salt-
water spray if you’re storing off-
Control room tailored to individual needs of operators ............................................ 76
shore. But with Universal’s Cortec®-
Optimizing control room operator performance calls for more than just the latest equipment
based protectants shielding your and systems. Ergonomic factors are also critical, claims Pierre Schäring, marketing manager of
equipment during lay-up, you can CGM - not only to ensure that operators stay alert during the long hours of their shift, but also to
be sure your investment is safe and provide an environment in which they can manage emergency situations.
ready to go when the call comes in.
• Preserve offshore and onshore Simulator adds realism to helicopter escape routines ............................................. 76
equipment with wide range of Improved training in underwater helicopter escape is available from Scandinavian Safety Train-
internal and external corrosion ing Center (SSTC). Recent incidents in the North Sea attest to the importance of such training
inhibitors for offshore personnel and helicopter crews.
• Quick, cost-effective protection
• Environmentally responsible Separator minimizes bilge water oil content ............................................................ 78
• No removal typically needed Alfa Laval has extended its PureThinking range of separation products for the offshore shipping
at startup – equipment is ready and marine sectors with a new system for treating bilge water.
to go
• Cortec-based vapor-phase Catering equipment, laundry specialist strengthens presence in Far East ............. 80
inhibitors protect ferrous and Loipart, a supplier of food service and laundry systems to the offshore and marine sectors,
non-ferrous metals moves closer to customers in Southeast Asia by opening an office in Singapore.
• On-site cleaning, and periodic
maintenance services also
available D E P A R T M E N T S

Find out more at

www.universalcorrosionspecialist.com
Comment ............................................... 6 Vessels, Rigs, & Surface Systems ...... 22
or call 281-342-9555. Data ....................................................... 8 Drilling & Production .......................... 24
Global E&P .......................................... 10 Geosciences ........................................ 26
Offshore Europe .................................. 16 Business Briefs ................................... 82
Gulf of Mexico ..................................... 18 Advertisers’ Index............................... 87
© 2009 Universal Corrosion Specialist (UCS903/0409/Offs) Subsea Systems ................................. 20 Beyond the Horizon ............................ 88

4 Offshore July 2009 • www.offshore-mag.com

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better subsea production.

Build

With an open system Open up your subsea network. Weatherford’s production control and
from Weatherford, communication systems work with trees from all major manufacturers,
adding or retrofitting
enabling you to easily combine previously incompatible systems. Because
equipment becomes far
you can mix and match devices on the sea floor, you increase your
simpler because you
are no longer tied to a options for expanding subsea fields or for retrofitting new designs while
single manufacturer’s delivering state-of-the-art monitoring, control and data management.
communication protocol,
Who would have thought you could simplify subsea operations while
pricing or delivery
increasing speed, flexibility and performance? Weatherford did. For more
schedule. And you can
use your existing power information on opening your existing subsea system for state-of-the-art
lines for high-speed control, communications and data management, visit weatherford.com.
communications.
Weatherford helped StatoilHydro upgrade
subsea communications and increased the
number of downhole gauges from the Visund
platform. The operator can now monitor
performance in wells with more complex
reservoir structures and increase the overall
speed and reliability of communications.

The open database

structure allows the
dissemination of data
from all subsea devices
to real-time operational
and historic databases.

Drilling Evaluation Completion Production Intervention

© 2009 Weatherford International Ltd. All rights reserved. Incorporates proprietary and patented Weatherford technology.

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COMMENT Eldon Ball • Houston

PennWell
1455 West Loop South, Suite 400, Houston, TX 77027 U.S.A.
Tel: (01) 713 621-9720 • Fax: (01) 713 963-6296
MODU new construction at stand-still
The global economic recession, decline in energy demand, and collapse last year of
EDITOR-IN-CHIEF MANAGING EDITOR oil and gas prices mean the mobile offshore drilling unit (MODU) construction boom
Eldon R. Ball David Paganie has come to an end. That’s the conclusion of a report in this month’s issue from ODS-
[email protected] [email protected]
Petrodata on the state of the offshore rig market.
EDITOR-EUROPE TECHNOLOGY EDITOR,
Jeremy Beckman SUBSEA & SEISMIC Three MODU orders have been placed so far this year compared to the 38 rigs or-
[email protected] Gene Kliewer dered in the first six months of 2008, an indication in the slowdown in activity within
[email protected]
EDITORIAL ASSISTANT the offshore industry. As of the first of June, 165 MODUs were under construction,
Priti Ubhayakar TECHNOLOGY EDITOR, planned, or on order worldwide. That total includes 69 jackups, 49 semisubmersibles,
[email protected] DRILLING & PRODUCTION
John Waggoner 41 drillships, and six tender-assist units. Of these, 44 will be delivered this year into the
PRESENTATION EDITOR [email protected]
Josh Troutman softening rig market, including 22 jackups.
[email protected] ODS-Petrodata forecasts a significant surplus of jackups in the market into 2011 at
least. Given the oversupply of jackups and the lack of available capital, it remains to be
CONTRIBUTING EDITORS
Jim Redden (Houston) seen whether those rigs that are planned but not yet under construction actually make
Nick Terdre (Norway) it past the drawing board. See the full report and forecast by Karen Boman, ODS-
David Shields (Mexico)
Peter Howard Wertheim (Brazil)
Petrodata, beginning on page 52.
Gurdip Singh (Singapore)
Oversupply of jackups
The global jackup fleet has grown significantly from January 2004 to May 2009. The
SALES jackup count increased from 387 to 440 and is expected to add about 60 more before
WORLDWIDE SALES MANAGER the year ends. The growing jackup fleet means that 2009 will be a challenging year for
HOUSTON AREA SALES jackup operators. Some jackups will be without contracts for all or part of the year and
David Davis [email protected] Tel: (713) 963-6206
Bailey Simpson [email protected] others planned for construction will not be built.
CUSTOM PUBLISHING Included in this issue is the Offshore wall-size poster detailing the worldwide jackup
Roy Markum [email protected] rig fleet, compiled by Special Correspondent Jaime Kammerzell. The poster is limited
Tel: (713) 963-6220 to rigs with capacity for 350 ft (107 m) or greater water depth and 25,000 ft (7,620 m) or
PRODUCTION MANAGER greater maximum drilling depth. Thus, not all 440 jackups are carried on the poster.
Kimberlee Smith [email protected]
Tel: (918) 832-9252 • Fax: (918) 831-9415 See her report beginning on page 60.
AUDIENCE DEVELOPMENT MANAGER
Tommie Grigg [email protected] Resolving ‘Big Three’ of improved recovery
Tel: (918) 832-9207 • Fax: (918) 831-9482 Mention improved or tertiary recovery and usually the first things that come to mind
SUBSCRIBER SERVICES are injecting gas and chemicals or employing ultrasonic stimulation and other tech-
Contact subscriber services for address changes
Tel: (847) 559-7501 • Fax: (847) 291-4816 niques to pry elusive reserves from producing wells.
Email: [email protected] However, for subsea engineers the systematic development of technologies that focus
on the big three of “processing, power, and pumping” hold the keys for maximizing the
recovery of innumerable deepwater assets that otherwise would remain stranded.
PETROLEUM EVENTS That, says Manuel Terranova, GE Oil & Gas senior VP of subsea product plat-
Eldon Ball (Houston) [email protected]
Niki Vrettos (London) [email protected] form and commercial operations, will make even comparatively small deep and ultra
Frances Webb (London) [email protected] deepwater fields economical.
Gail Killough (Houston) [email protected]
In an exclusive interview with Contributing Editor Jim Redden for Offshore, Terranova
EDITORIAL ADVISORY BOARD laid out the strategic thinking of GE Oil & Gas for future subsea improved oil recovery.
Luke R. Corbett, Anadarko While others look at near-term opportunities to increase production from existing
David J. Greer, Shell International E&P deepwater fields, Terranova believes increasing subsea recovery over the long-term
Jack B. Moore, Cameron Corp.
Hugh O’Donnell, Saipem must focus on extending field life appreciably and in slashing costs, even to the point of
Bruce Crager, J. Ray McDermott making surface production facilities obsolete. Doing so, however, means resolving the
James K. Wicklund, Spinnerhawk Capital Management
technological hurdles of deepwater subsea processing, transmitting power for ultra-long
CORPORATE HEADQUARTERS
step-outs, and boosting flow through compression or pumping.
PennWell; 1421 S. Sheridan Rd., Tulsa, OK 74112 Read the full interview beginning on page 66.
Member
All Rights reserved
Offshore ISSN-0030-0608 Emerging giant off Brazil
Printed in the U.S.A. GST No. 126813153 The fields discovered to date in Brazil’s Santos basin are expected to ramp up oil produc-
CHAIRMAN:
Frank T. Lauinger
tion from a very minor 4,000 b/d of oil in 2008, to some 675,000 b/d in 2015 and perhaps 1.3
MMb/d in 2020. That’s the projection from global research consultants Wood Mackenzie,
PRESIDENT/CHIEF EXECUTIVE OFFICER:
Robert F. Biolchini which has identified the key Brazilian infrastructure projects ready to take shape as the
country develops the subsalt hydrocarbons of the Santos basin over the next 20 years.
CHIEF FINANCIAL OFFICER:
Mark C. Wilmoth In this issue, Drilling Editor John Waggoner reports on the Wood Mackenzie find-
ings and looks at which projects will be developed first and in what time frame. See his
report beginning on page 28.

Publications Mail Agreement Number 40052420

GST No. 126813153
To respond to articles in Offshore, or to offer articles for publication,
contact the editor by email ([email protected]).
6 Offshore July 2009 • www.offshore-mag.com

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Do more exploring collaborating

project leading technology leading industry leading

subsurface subsea subanywhere smiling geosteering

globe-trekking horizontal drilling ecothinking biking

team building carbon capturing pushing the envelope

groundbreaking digital mapping remote sensing

rock sampling rock climbing relaxing on the weekends

playing creative thinking stress reducing family bonding

mud logging well logging caring for our environment

life balancing parenting softball playing soccer playing

initiative grabbing challenging yourself

here.
Do more with your career. Do more with your life. Right here in Houston at the
energy company behind the world’s longest subsea pipeline. DoMoreHere.com
__________

© 2009 StatoilHydro. An equal opportunity employer.

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G L O B A L D ATA

Worldwide day rates

Active rig fleet, June 2009
Year/Month Minimum Average Maximum
Floaters Drillship
Jackups 2008 June $43,000 $279,639 $523,000
2008 July $43,000 $292,290 $523,000
Far East
6 (0) 2008 Aug $43,000 $304,544 $525,000
27 (0) 2008 Sept $43,000 $317,024 $525,000
2008 Oct $43,000 $320,566 $559,000
North Sea
41 (+1) 2008 Nov $43,000 $324,804 $559,000
35 (+1) 2008 Dec $43,000 $326,748 $559,000
East 2009 Jan $115,000 $342,967 $560,000
Atlantic 2009 Feb $120,000 $349,513 $560,000
2 (0)
1 (0)
2009 March $125,000 $358,822 $560,000
US GoM 2009 April $125,000 $360,638 $560,000
33 (0) L. America SE Asia 2009 May $120,000 $360,463 $560,000
53 (-1) 49 (-1)
13 (+1) Jackup
15 (0)
50 (+3)
2008 June $41,440 $137,137 $330,000
Mex GoM 2008 July $41,440 $137,949 $330,000
5 (0) M. East 2008 Aug $40,000 $140,838 $330,000
36 (0) 1 (0)
S. Asia 2008 Sept $40,000 $142,174 $330,000
107 (+1)
W. Africa 10 (-1)
31 (+1) 35 (-1) 2008 Oct $41,440 $144,148 $330,000
26 (+1) 2008 Nov $35,000 $145,568 $330,000
Source: Rigzone.com 2008 Dec $35,000 $145,222 $330,000
2009 Jan $35,000 $148,174 $330,000
2009 Feb $41,440 $149,083 $330,000
GoM drilling permits issued 2009 March $40,000 $149,431 $330,000
2009 April $35,000 $148,575 $330,000
100 2009 May $35,000 $146,487 $330,000
90 Semi
2008 June $80,000 $302,771 $525,000
80
2008 July $80,000 $308,131 $525,000
Drilling permits

70
2008 Aug $80,000 $300,550 $525,000
60 2008 Sept $80,000 $305,825 $525,000
50 2008 Oct $80,000 $305,791 $525,000
43 45
40 39 37 2008 Nov $80,000 $314,481 $580,000
33 2008 Dec $80,000 $323,762 $637,000
30 28
20 2009 Jan $80,000 $326,827 $637,000
20 2009 Feb $80,000 $323,838 $637,000
10 2009 March $38,400 $331,349 $637,000
0 2009 April $38,400 $337,987 $637,000
Nov. Dec. Jan. Feb. Mar. Apr. May 2009 May $38,400 $339,150 $637,000
Source: Rigzone.com
Source: US Minerals Management Service

Latin America rig utilization Worldwide rig utilization

100
100
Drillship
95
95

90
Semisub
90

85
85
Jackup Semisub
Percent

Drillship
Percent

80
80
Jackup
75
75

70
70

65
65

60
Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May 60
Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May
Source: Rigzone.com 2008 2009 Source: Rigzone.com 2008 2009

8 Offshore July 2009 • www.offshore-mag.com

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__________

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GLOBAL E&P Jeremy Beckman • London

NOCs committed Hibernia South extension contains an

to investment estimated 220 MMbbl of recoverable oil, of
National oil companies (NOCs) and su- which 170 MMbbl will be produced via sub-
permajors plan to invest over $375 billion in sea wells connected to Hibernia’s gravity-
business development this year, according based structure platform. Hibernia itself has
to a new report from Ernst & Young. so far produced 670 MMbbl, with revenue to
Investing for the upturn predicts that almost the provincial treasury of $3.9 billion.
70% of the total spend will come from NOCs In the same region, the Canada-Newfound-
in South America and Asia, and that by 2015 land and Labrador Offshore Petroleum Board
the largest NOCs will have committed $600 has issued details of its 2009 Calls for Bids.
billion to their hydrocarbon sectors. There will be three separate offerings for ex-
Despite the International Energy Agen- ploration licenses, comprising two parcels in
cy’s cautious estimate for energy demand, the Western Newfoundland and Labrador off-
investment is still needed in production ca- shore region, and one each in the Jeanne d’Arc
pacity enhancement projects to offset falling basin and the Laurentian sub-basin. These cov-
output due to natural field depletion. Ac- er a total area of 513,769 ha (1,269,546 acres).
cording to the report’s author Andy Brogan, Bids are due in by mid-November.
“most oil and gas companies have indicated •••
that they will spend more than half of their Centrica has agreed to acquire a 45% in-
capital investment on upstream operations.” terest from Canadian Superior Energy in
Among the big NOC spenders, Petrobras gas development block 5(c) off the south-
plans to allocate $28 billion to its pre-salt ar- east coast of Trinidad. Exploratory drilling
eas as part of its $174 billion plan to 2013, the on the block, operated by BG Group, has so
report says, while China’s CNPC will invest far identified large reserves of gas, with 650
$42 billion. However, potential budget short- bcf attributable to the 45% stake.
falls in the Middle East, CIS and Africa could The Ensco 101 on its way to the Remontowa Subject to approval from the partners and
lead NOCs in these regions to invite foreign shipyard in Gdansk on the Baltic Sea coast. Trinidad’s government, Centrica will gain ac-
investment to maintain or boost their oil pro- The rig had been towed from the Dutch sector cess to fresh resources which it aims to sell
duction levels, the report claims. of the North Sea, where it had been operating, to its customers in North America and the
for an overhaul program expected to last 120
UK. First gas could be produced in 2014.
days. Work will include general repairs and
Americas maintenance, cleaning of the legs, protective
•••
The Provincial Government of Newfound- coating, gutting of the accommodation block, BPC has made an arrangement under which
land and Labrador has secured a 10% equity and installation of new living quarters. The StatoilHydro will operate the Falcones, Islamo-
stake in the Hibernia South Extension proj- yard had previously upgraded semisubmers- rada, and Zapata licenses in the Cay Sal area of
ect, via Nalcor Energy – Oil and Gas. It has ible platforms, but this is its first experience the Bahamas. However, the agreement must
also agreed to a royalty rate of 50% with the with a large drilling jackup. Remontowa claims first be approved by the islands’ government.
partners in the project, ExxonMobil, Petro- this is also the highest and widest object to Limited 2D seismic and satellite data suggest
Canada, Chevron, Murphy Oil, Canada Hi- transit through Gdansk Port, with the legs several large structures could be present in the
extending 140 m (459 ft) above sea level.
bernia Holding Corp., and StatoilHydro. license area.

_______________

10 Offshore July 2009 • www.offshore-mag.com

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GLOBAL E&P
𰀿𰁤𰀖𰁪𰁞𰁛𰁩𰁛𰀖𰁭𰁗𰁪𰁛𰁨𰁩
𰀻𰁎𰁆𰀻𰁈𰀿𰀻𰁄𰀹𰀻𰀖𰁟𰁩𰀖𰁡𰁛𰁯 ••• to provide back-up gas to the mainland during
Petrobras has started production from the periods of peak demand. The planned scope in-
Camarupim and Cangoa gas fields off the coast cludes a new wellhead platform bridge-linked to
of Espirito Santo. Both developments are part of a production, utilities, and quarters platform in
Brazil’s Plangas gas production program, drawn 60 m (197 ft) of water, with gas injection into the
up in 2006 to harness gas for domestic use. reservoir at rates up to 8 MMcf/d.
Camarupim’s output will eventually flow
through four wells connected to the FPSO Black Sea
Cidade de Sao Mateus, moored in 790 m (2,592 Operations should get under way shortly
ft) of water, which can process 10 MMcm/d at Melrose Resources’ new Galata gas stor-
(353 MMcf/d) of gas and 35,000 b/d of light age facility offshore Bulgaria. This involved
oil. Cangoa’s gas is exported to the Peroa plat- conversion of the Galata platform and res-
form. Post-processing, the gas from both fields ervoir, where production ceased in January.
is transported to the Cacimbas Gas Treatment Nearby, Melrose has issued a declaration of
Unity (UTGC) facility in Linhares. commerciality for the offshore Kavarna field,
and the company expects to resume drilling
Africa on its Kaliakra discovery later this year.
BP and Sonangol have made their 18th oil •••
discovery in Angola’s ultra deepwater block 31. Rosneft has signed a five-year exploration
The Oberon-1 well, in 1,624 m (5,328 ft) of wa- and development agreement with the Minis-
ter, flowed over 5,000 b/d under test conditions. try of Economy in Abkhazia, formerly part
The new find is in the south of the block, 4.3 km of Georgia. The two parties will co-operate
(2.7 mi) northeast of the Dione accumulation. in upstream and downstream projects, and
••• may also jointly develop new technologies
The Somaliland Ministry of Water and Min- for exploration and secondary recovery from
eral Resources has extended the country’s offshore finds.
first hydrocarbon concessions bidding round
until Dec. 15. On offer are eight blocks cover- Caspian Sea
ing offshore and onshore areas. Permits are Three companies have signed joint explo-
now expected to be awarded next March. ration and development agreements for the
The geology offshore is said to be analo- Nursultan block, offshore Kazakhstan. Kazmu-
gous to oil-producing basins in Yemen. In nayGas will hold 51% of the subsoil use contract,
preparation for the round, TGS-Nopec is mak- the remainder held equally by ConocoPhillips
ing available 5,300 km (3,293 mi) of seismic, and Mubadala Development Co. The block
gravity, and magnetic data in the offshore covers an area of 8,100 sq km (3,127 sq mi), 30
areas and high resolution aeromagnetic data, km (18.6 mi) southwest of Aktau, and is said to
all acquired during 2007-08. be strongly prospective for oil and gas. Kazakh
LLP has been created to operate the block on
Europe behalf of the partners.
Iceland has closed its first offshore licens-
ing round for the northern Dreki area. The Asia-Pacific
National Energy Authority received applica- Murphy Oil has discovered two new fields
tions for four blocks from Aker Exploration in its permits offshore Malaysia. A well on
and Lindir Exploration. Two of these blocks the deepwater Siakap North prospect in
are on the continental shelf between Iceland block K, offshore Sabah, encountered oil-
and Jan Mayen. Any resulting licenses will bearing sands thought to be of similar qual-
be issued by end-October. ity to the company’s producing Kikeh field,
••• 6 mi (9.7 km) distant. The second find came
Gazprom and StatoilHydro have signed a at the shallow water East Patricia prospect
new memorandum of understanding relat- in block SK 309 off Sarawak, where the well
ing to potential joint programs off northern encountered around 230 ft (70 m) of net gas
(281)931.5056 Russia and Norway. The co-operation agree- pay. The location is close to the new Bintulu
ment, valid for the next three years, covers onshore gas reception facility.
______________
exploration, development, and new technolo- Also in Malaysia, Petronas Carigali has
gies to assist E&P and transportation of pro- signed a production sharing contract with
duced resources. Both parties are already co- ExxonMobil for further development of sev-
operating on the Shtokman gas-condensate en offshore oil fields. The two companies
development in the Barents Sea. will commit a minimum of $2.1 billion to en-
••• hanced oil recovery programs, rejuvenation
ACS Cobra Castor UTE has contracted Noble of facilities, and further development.
Denton for project management services related •••
to a gas storage scheme in the Mediterranean J. Ray McDermott has loaded out a 14,000-met-
Sea. The program involves re-developing the ric ton (15,432-ton) integrated deck from its yard
Project Management & Inspection abandoned Amposta reservoir off eastern Spain in Batam Island for ConocoPhillips’ North Belut
End Measuring  Material Traceability

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𰀸𰁂𰁅𰁅𰀺𰀖𰁆𰁈𰀻𰁉𰁉𰁋𰁈𰀻𰀖𰀹𰁅𰁄𰁊𰁈𰁅𰁂
Considering the size of most E&P investments, it’s natural to be concerned about the
well-being of your operation. No one is more experienced than Boots & Coots at providing
pressure control services. Our snubbing/hydraulic workover services and pressure control
rental tools set the industry standard. You’ll rest much easier with Boots & Coots on your
team. So call 1.281.931.8884 or 1.800.BLOWOUT today. And relax.

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_______________

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GLOBAL E&P

blocks in the offshore Nile Delta under Egypt’s 2008 bidding round.
North Tineh Offshore and North Damietta Offshore are contigu-
ous deepwater concessions, carrying commitments to drill a total of
seven exploratory wells over the next six years.
In the same area, Enel and Total have secured the E. El Burullus
exploration block, 70 km (43.5 mi) from the north coast in water
depths of up to 1,600 m (5,249 ft). The initial four-year exploration
phase commitment includes 3D seismic acquisition and drilling.
•••
Hyundai Heavy Industries has delivered the third of three new plat-
forms ordered by ADMA-OPCO for the Umm Shaif field offshore Abu
Dhabi. The latest structure is 32 m (105 ft) tall and weighs 7,041 metric
tons (7,761 tons). Hyundai was due to complete installation of the fa-
cilities and subsea pipelines last month. At peak they should produce
300,000 b/d of oil and 1 bcf/d of gas. ADMA-OPCO has since issued a
further platform construction contract for Umm Shaif to NPCC.
North Belut topsides.
Australasia
central processing platform. Work started in January 2007, and occupied In New Zealand’s Taranaki basin, the Maari joint venture partners
a workforce of more than 1,200 people at peak. J. Ray also fabricated the have approved drilling of the Manaia-1 well from the Maari platform,
platform’s eight-leg steel jacket under a separate contract. North Belut is assisted by the jackup Ensco 107. The horizontal extended reach
in Block B of the Indonesian sector of the Natuna Sea, around 60 km (37.3 well should get under way in August, targeting a location updip from
mi) east-northeast of the Belanak field and its associated FPSO. the 1970 Maui-4 oil discovery well. If successful, the well will be
••• completed and tied into the Maari facilities.
Husky Oil China has contracted WorleyParsons for front-end en- •••
gineering and design for its Liwan 3-1 area development in the South AED has acquired 50% of the Longtom project in the Bass Strait
China Sea. Work should be completed in 2010. and the surrounding exploration permit VIC/P54 from Nexus. First
gas and condensate was expected to flow this month. The field has
Middle East been developed as a two-well subsea tieback in 56 m (184 ft) of water
Egyptian Natural Gas Holding Co. (EGAS) has awarded BP two to Santos’ Patricia-Baleen facilities. 

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OFFSHORE EUROPE Jeremy Beckman • London

Gro confirms new deepwater gas province extensively offshore, will incur 100% purchase of allowances.
Norske Shell has proven a potential new giant gas field in the Industry is concerned that these extra costs could reduce recov-
northern Norwegian Sea. After weeks of speculation, the Norwe- ery of reserves from the UK shelf, through truncating current pro-
gian Petroleum Directorate (NPD) confirmed that the Gro structure duction and by deterring investment in future projects. Oil & Gas
could hold 10-100 bcm (353 bcf-3.5 tcf) of recoverable gas. UK estimates that as a result, up to 1 Bboe could be neglected.
This was the first exploration well in production license 326, The impact could be softened if the EU deemed the offshore sec-
awarded in 2004 under the 18th Norwegian licensing round. Well tor as subject to carbon leakage – i.e. unfairly affected by competition
6603/12-1, drilled by the Leiv Eriksson, encountered a 16-m (52.5-ft) from countries outside the EU not applying similar measures to limit
gas column in Upper Cretaceous reservoir rocks. The water depth emissions. But purchase allowances will not be lifted for production
of 1,376 m (4,514-ft) was the deepest for any discovery to date on the of electricity. As David Odling, Oil & Gas UK’s gas and commercial
Norwegian shelf. issues manager, points out, this provision will perversely affect the
This news confirms NPD’s view that E&P activity on the shelf is most modern and efficient offshore installations, which tend to be
in good shape, despite the general global downward trend. Accord- all-electric.
ing to its latest review, 15 wells were drilled in the first quarter of The association is trying to raise awareness of the impact of these
this year against 10 in the same period last year. The upsurge was proposals among UK government officials, fearing an exodus of
stronger in development drilling, with 45 new wells, including later- investors from the North Sea. Oil and gas has been included on a
als, compared with 27 in 1Q 2008. provisional list of industries qualifying for carbon leakage relief, al-
though a final decision will not be taken before year-end.

Serica proves oil in Slyne basin

Serica Energy has discovered oil with its first exploration well
offshore Ireland, on the Bandon prospect. The semisubmersible
Ocean Guardian drilled the well in Slyne basin frontier license 1/96,
encountering oil in unspecified volumes in Jurassic and Sherwood
intervals.
The same Sherwood sandstones are the source of Shell’s Corrib
gas field to the north, so this outcome may have been unexpected.
According to Serica, it was also the first oil find anywhere off west-
ern Ireland for nearly 30 years.
Based on new geological and petrophysical data, Serica plans to
evaluate further drilling targets in the acreage. Recently, it applied
for another permit in the region under Ireland’s Rockall basin licens-
Exploration wells drilled on the Norwegian shelf in 2008 and the first ing round.
quarter of 2009. (Source: NPD). In the shallow water Celtic Sea off southern Ireland, Island Oil &
Gas has commissioned a scoping study concerning two development
options for its Old Head of Kinsale gas field. One involves a tieback
The NPD logged six discoveries across the shelf in the period, all to the Kinsale platform complex, newly acquired by Star Energy/
relatively small. The high success rate has continued in the second Petronas; the other would be a subsea-shore scheme. In either case,
quarter, with Talisman Energy finding oil at the Grevling prospect Island would be interested in converting the field to a gas storage
in the North Sea, close to the Varg field. StatoilHydro added four facility with capacity for up to 15 bcf, based on Old Head’s estimated
new fields to its inventory, the most promising being Fulla, 40 km reserves of 49 bcf and reservoir pressure of 1,781 psia.
(24.9 mi) south of Heimdal, which could hold over 100 MMboe of
gas-condensate. Chevron, Total weigh WoS options
Oil/liquids and gas production were also up on the corresponding Chevron is moving toward a decision on its Rosebank/Lochnagar
figures for 2008, averaging respectively 2.51 MMb/d and 29.8bcf/d. oil and gas project west of Shetland. It has contracted Intecsea in
New development plans were submitted for the Goliat oil field in Houston to evaluate various development options for the field, in
the Barents Sea and the Oselvar oil and gas field in the North Sea. 3,700 ft (1,128 m) water depth. The scope of work includes subsea
DONG has contracted Aker Solutions for the subsea production equipment, risers, topsides/process, FPSO and semisubmersible
system for Oselvar, involving three wells tied back to BP’s Ula plat- hulls, and gas export needs. WorleyParson’s Upstream division is
form. providing support on topsides studies.
Another soon-to-be-developed resource in the area is gas from To-
Emission restrictions tal’s Laggan and Tormore fields. Operator Total has commissioned
threaten UK operations Doris Engineering and Offshore Design Engineering in London for
Oil & Gas UK is monitoring planned changes to the European development studies based on a direct subsea tieback to a new pro-
Union’s Emissions Trading Scheme (ETS). Phase III, due to run cessing plant on the main Shetland island.
from 2013-2020, could pile further operating costs on the belea- The two fields will deliver gas via two subsea production systems
guered UK offshore industry. around 16 km (10 mi) apart, in 600 m (1,968 ft) of water. Total plans
Power generation, combustion, and gas flaring inevitably gener- up to eight subsea wells connected by two 125-km (77.7-mi), 18-in.
ate greenhouse gases offshore. “Cleaner” alternatives often are un- (45.7-cm) production flowlines to the treatment terminal, along with
suitable or too expensive for retrofitting to North Sea installations. a 125 km methanol injection line and control umbilical. Following
Nevertheless, under Phase II of the ETS, operators of qualifying compression, the treated gas will head 234 km (145 mi) through
installations could be obliged to pay for 20% of their annual emis- another new pipeline to a tie-in point close to the Frigg trunkline
sions through purchase of EU allowances from 2013, rising to 70% system for onward passage to St Fergus in eastern Scotland. First
in 2020. And from 2013, any production of electricity, as happens gas is targeted for 2013/14. 

16 Offshore July 2009 • www.offshore-mag.com

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We’ve earned
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GULF OF MEXICO David Paganie • Houston

Deepwater discoveries probability of a below-normal season. NOAA forecasters say there is a

Newfield Exploration Co. and Anadarko have recently announced 70% chance of having nine to 14 named storms, of which four to seven
discoveries in the deepwater Gulf of Mexico. Newfield made two could become hurricanes, including one to three major hurricanes
discoveries - Pyrenees and Winter. Pyrenees, in 2,100 ft (640 m) of (Category 3, 4, or 5). According to NOAA, an average season has 11
water in Garden Banks block 293, encountered 125 ft (38 m) of net named storms, six hurricanes, and two major hurricanes.
hydrocarbon pay in three separate intervals. Development planning CSU predicts that 2009 will have about five hurricanes, 11 named
is under way, with a delineation well scheduled for the second half storms, 50 named storm days, 20 hurricane days, two major (Cat-
of this year. egory 3, 4, or 5) hurricanes, and four major hurricane days. Ac-
Newfield operates Pyrenees with a 40% working interest. Partners cording to CSU, an average season has five hurricanes, 9.6 named
are Stone Energy Corp. (15%), Ridgewood Energy Corp. (15%), Are- storms, 49.1 storm days, 24.5 hurricane days, 2.3 major hurricanes,
na Exploration (15%), and Deep Gulf Energy (15%). and five major hurricane days.
The Winter discovery, in 3,400 ft (1,036 m) of water in Garden Banks Tropical systems acquire a name, the first for 2009 will be Ana, upon
block 605, encountered 44 ft (13 m) of net hydrocarbon pay in two reaching tropical storm strength with sustained winds of at least 39
sands. Various development options are being considered. Newfield op- mph. Tropical storms become hurricanes when winds reach 74 mph,
erates Winter with a 30% working interest. Partners are Apache Corp. and become major hurricanes when winds increase to 111 mph.
(25%), Deep Gulf Energy (25%), and Royal Offshore (20%). Supporting more activity this season, NOAA says, are conditions as-
Anadarko made a discovery on the Samurai prospect in Green Can- sociated with the ongoing high-activity era that began in 1995, which
yon block 432. The discovery well, in 3,400 ft (1,036 m) of water, en- include enhanced rainfall over West Africa, warmer Atlantic waters, and
countered more than 120 ft (37 m) of net oil pay in several high-quality reduced wind shear. But activity could be reduced if El Niño develops in
sands. An appraisal well is planned within the next year. Anadarko oper- the equatorial Eastern Pacific this summer or if ocean temperatures in
ates the block with a 33.33% working interest. Partners include Murphy the eastern tropical Atlantic remain cooler than normal, says NOAA.
Oil and Samson Offshore, each with a 33.33% working interest. CSU expects neutral ENSO conditions to persist or perhaps tran-
In other deepwater news, Mariner has started production from the sition to weak El Niño by the most active portion of the hurricane
Geauxpher field in Garden Banks block 72. In less than 12 months season (August-October). If El Niño conditions develop, it would
from discovery, the field was flowing approximately 115 MMcfe/d tend to increase the levels of vertical wind shear and decrease the
of natural gas gross. Mariner-operated Geauxpher, in 2,700 (823 m) levels of Atlantic hurricane activity, CSU says.
of water, is a two-well, 40-mi (64-km) tieback to Garden Banks block Both NOAA and CSU will issue an updated hurricane outlook in
72. Its reserves potential is estimated at more than 100 bcfe gross. early August.
Mariner plans to start up two additional deepwater fields in this year
– Daniel Boone, a one-well, 22-mi (35-km) tieback from Green Canyon Helix installs subsea
block 646 in 4,250 ft (1,295 m) of water; and a one-well, three-mi (5-km) equipment on Thunder Hawk
tieback from Viosca Knoll block 821 in 1,000 ft (305 m) of water. Helix Energy Solutions has installed two 86-ton (78-metric-ton)
pipeline-end-termination (PLET) modules on the Thunder Hawk
Forecasters predict normal hurricane season field in the Gulf of Mexico.
Renowned hurricane forecasters from NOAA and Colorado State A total of four PLETs were installed, including two 8-in. (20-cm) infill
University agree that activity in the 2009 Atlantic hurricane season flowline units, and two 12-in. (30-cm) modules for tie-back into the Mar-
is likely to be near-normal. di Gras export lines. The individual mud-matted PLETs measured 40 ft
NOAA forecasters say a near-normal Atlantic hurricane season is x 40 ft (12 x 12 m) with 20-in. (51-cm) connectors for the gas export line
most likely this year, while CSU predicts below-average activity. and 16-in. (41-cm) connectors to the oil line. With the connected 12-in.
In its initial outlook for the 2009 Atlantic hurricane season, which (30-cm) pipeline, the PLETs weighed up to 200 tons (181 metric tons)
runs from June through November, NOAA’s National Weather Ser- each. Helix is in the preparation phase of installing 16-in. and 20-in. ex-
vice Climate Prediction Center calls for a 50% probability of a near-nor- port jumpers associated with the PLETs. Spitzer Industries fabricated
mal season, a 25% probability of an above-normal season, and a 25% the PLETs at its Green Bayou facility near Houston.
First production from Murphy-operated Thunder Hawk is expect-
ed in the second half of this year via a stand-alone semisubmersible
production unit with capacity expandable to 60,000 b/d of oil. Thun-
der Hawk is in Mississippi Canyon block 736.

New contracts
ATP Oil & Gas has awarded 2H Offshore a contract to verify the
design, fabrication, and installation of a flexible production riser for
the Telemark development in Atwater Valley block 63. The high-
pressure (12,500 psi) oil flexible catenary riser will tieback to ATP’s
Titan MinDoc floating platform in 1,357 m (4,450 ft) of water.
Also for Telemark, Bluewater Industries has awarded Weather-
ford International a contract to supply a subsea production control
system. The subsea portion of the system is comprised of a control
module, base, and tree instrumentation.
Petrobras America has awarded SPT Energy Group (SPT) a con-
tract for the inspection services associated with the offshore installa-
tion of the Cascade/Chinook pipeline. The inspection services include
Hurricane Ike, a Category 2 storm when it made landfall along the Texas
welding, coating, and AUT inspectors for the onshore fabrication and
Gulf Coast in August, 2008, caused an estimated $24 billion in damages. offshore installation for both reel-lay and J-lay vessels. The work be-
Image courtesy of NOAA. gan in April and is scheduled for completion in mid-2010. 

18 Offshore July 2009 • www.offshore-mag.com

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SUBSEA SYSTEMS Gene Kliewer • Houston

Contract awards Schematic illustrates the APL Off-

Cameron reports receipt of a $650-million shore Singapore Pte Ltd. Submerged
contract to supply subsea systems for Total’s Turret Loading buoy with diverless
Usan’s 44-well subsea development offshore bend stiffener connectors from First
Nigeria. According to the contract, Cameron Subsea Ltd. First Subsea plans
will provide subsea system engineering and four stiffeners for two STL buoys
STLTM
destined for Neptune Deep Water
project management in addition to subsea buoy
Project North and South. APL says it Subsea pipeline LNG regasification vessel
christmas trees, production and intervention is aiming for a completely diverless
controls, manifolds, flowline connectors, in- installation and operation of the
stallation support, and spare parts to Elf Pe- loading system. The DBSC uses First
troleum Nigeria. Delivery and installation is Subsea’s Ballgrab ball and taper Flexible
riser
scheduled to run until 2012. technology where female DBSC con-
Usan is 62 mi (100 km) offshore Nigeria in nectors are integrated into the STL
2,460 ft to 2,788 ft (750 m to 850 m). Elf holds buoy ahead of tow out. The DBSC Subsea Anchor
male connectors are then inserted manifold lines
20%, Nexen 20%, Chevron 30%, and Esso 30%.
offshore to provide a secure connec-
••• tion for a gas offloading riser bend stiffener within a J tube and an umbilical within an I tube on each
of the buoys. The risers and umbilicals are secured at the top of each respective I/J tube.
Anadarko Petroleum Corp. has awarded Tech-
nip a contract for expansion work at the K2 field
in the GoM. Anadarko reportedly plans to tieback
two wells to existing subsea equipment and to the
Marco Polo platform with production flowlines.
The wells are in Green Canyon blocks 562 and
606 at 1,200 m (4,000 ft) water depth.
Technip is to supply project management
and engineering; fabrication, and installation
of two rigid flowlines; design, fabrication, and
installation of four PLETs; installation of two
static umbilicals; tie-ins; precommissioning;
and surveys. Flowline production is scheduled
for the Technip spoolbase in Mobile, Alabama.
Installation is scheduled for 3Q 2009 using the
Deep Blue pipelay vessel.
•••
Contract awards for work in Brazil are an-
nounced. Dril-Quip do Brasil Ltd. got a three-
year, $180-million contract to supply subsea
wellhead systems.
FMC Technologies Inc. will manufacture
and install surface wellheads and surface pro-
duction trees for StatoilHydro at Peregrino. Nalco’s new ultra deepwater laboratory’s high-pressure/high-temperature test installation is de-
Peregrino is a heavy oil development in 400 scribed by Dr. Andrew Yen.
ft (120 m) of water in Campos basin. Develop-
ment is divided into three phases and will total $3 million, the new laboratory came out of Nal- ect and awarded TD Williamson a contract to
about 60 wells. The first phase of FMC’s con- co’s recognition that ultra deepwater applications engineer and supply all bespoke hot tap equip-
tract covers 30 production and seven injection have special technical challenges, said Stephan ment and equipment testing.
wells. Deliveries are expected to start in 1Q J. Allenson, industry fellow, OFC Research for
2010 from FMC’s Rio de Janeiro facility. Nalco in introducing the facility. Statoil, Framo working
GE Oil & Gas has a $250-million, three- Current work in the lab involves investi- on wet gas compression
year contract to supply 250 VetcoGray subsea gation into processes involved with lift, sub- Framo Engineering and StatoilHydro have a
wellheads for delivery starting in July. The sea separation, and cold flow. contract to develop and qualify a subsea boost-
wellheads are to be manufactured at GE’s ing system based on subsea wet gas compres-
Jandira facility in São Paulo. GE says it is ne- High-pressure North Sea sion. The two-year contract is a step toward a
gotiating with Petrobras to supply services hot tap completed subsea multiphase compressor which Statoil-
for the equipment under a separate contract. A successful high-pressure hot tap has fa- Hydro and its Gullfaks partners plan to use at
cilitated tie-in of the North Sea’s Ettrick field start-up in 2013.
Ultra deepwater lab bas export pipeline. T.D. Williamson SA per- The Gullfaks field lies in block 34/10 in the
opens at Nalco formed the operation for Acergy on the Nexen northern part of the Norwegian North Sea and
A new laboratory dedicated to R&D for Petroleum UK Ltd. pipeline has been developed with three concrete produc-
ultra deepwater applications now is open at Throughout the tie-in, the pipeline pressure tion platforms. Four satellite fields – Gullfaks
Nalco Co.’s Energy Services Division in Sug- was 117 bar (11.7 MPa) in 94 m (311 ft) of water. South, Rimfaks, Skinfaks, and Gullveig – have
ar Land, Texas. Acergy supplied engineering, procurement, been developed with subsea wells remotely con-
Constructed and equipped at a cost of almost installation, and precommissioning on the proj- trolled from the Gullfaks A and C platforms. 

20 Offshore July 2009 • www.offshore-mag.com

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©2009 - API, all rights reserved.

IT’S TIMES LIKE THESE YOU NEED PEOPLE LIKE US.

I T ’ S A T O U G H B U S I N E S S . LO O K T O A P I . ®

C E R T I F I C A T I O N | S T A N D A R D S | T R A I N I N G
S a l e s + 1 71 3 - 9 6 4 - 2 6 6 2 | S e r v i c e + 1 2 0 2 - 9 6 2 - 4 7 91 | s a l e s @ a p i . o r g | w w w. a p i . o r g
__________

AMERICAN PETROLEUM INSTITUTE

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VESSELS, RIGS, & SURFACE SYSTEMS David Paganie • Houston

First ENSCO 8500 Series deployed

The first of seven newbuild Ensco International ENSCO 8500 Series
semisubmersible drilling rigs, ENSCO 8500, has started work in the
Gulf of Mexico under a four-year contract with Anadarko and Eni.
The next rig in the series, ENSCO 8501, is expected to begin work
in the GoM in mid-October under a three-and-a-half-year contract with
Nexen and Noble Energy. The ENSCO 8502 (contracted to Nexen) and
ENSCO 8503 (contracted to Cobalt) are scheduled for delivery next
year and both are under contract for two-year terms in the region.
The final three in the series: ENSCO 8504, scheduled for delivery
in 2011; and ENSCO 8505 and ENSCO 8506, scheduled for delivery
in 2012, are not yet contracted.
Keppel FELS built ENSCO 8500 in Singapore and is constructing
the rest of the seven-rig fleet.
The new vessel design from Rolls-Royce, UT 790 CD, features what it calls
Petrobras, Sevan revise Sevan Driller contract “wave piercing technology.” Image courtesy of Rolls-Royce.
Petrobras and Sevan have approved a revised charter contract
for the semisubmersible Sevan Driller. The contract has been reas- This adds to the vessel’s flexibility and improved fuel economy, the
signed from Petrobras Americas Inc. to Petrobras SA for operations company says.
offshore Brazil instead of the US GoM, as agreed initially. The vessel also comes with a multi-drive power electrical system
The rig, scheduled to arrive offshore Brazil in the fourth quarter that gives flexibility in different operating modes. This optimizes
of this year, will drill presalt wells in the Santos basin in water depths fuel efficiency and reduces emissions substantially compared to
from 2,400 m (7,874 ft). The contract term remains at six years. conventional propulsion systems, Rolls-Royce says.
Sevan Driller is in the final stages of construction at the Cosco
Shipyard in China. Bee Mar introduces newbuild fleet
Newly formed marine transportation company Bee Mar is intro-
LeTourneau wins rig kit contract ducing a fleet of DP-2 platform supply vessels (PSVs) for offshore
PetroVietnam Shipyard has awarded LeTourneau Technologies support in the Gulf of Mexico and international markets.
(LTI) a $40-million contract to provide the rig kit, license, and tech- The Bee Mar newbuild fleet will consist of five 210-ft (64-m) and
nical consultancy assistance for the construction of a newbuild Su- three 234-ft (71-m) ABS-classed DP-2 PSVs. The 210-ft x 56-ft x 18-ft
per 116E jackup rig. PetroVietnam Shipyard is building the rig for (64-m x 17-m x 5-m) PSVs have capacity for 2,700 long tons (3,024
Vietnam Oil & Gas Group in Vung Tau City, S. R. Vietnam. tons) of cargo, clear deck, 6,300 bbl of liquid mud, and 6,000 cu ft
LTI will supply rig kit equipment, including the leg components, (170 cu m) of dry bulk. The vessels are rated at 4,000 bhp.
elevating system, controls, spud can materials, cantilever skidding The first two vessels, M/V Busy Bee and M/V Worker Bee, were
system, and hold-down structures. LTI will deliver the kit in stages scheduled to be delivered by late June for service in the GoM, with a
beginning in the fourth quarter of this year with the final shipment sister ship being delivered every 60 days thereafter. The vessels are
in 3Q 2010. being built at Bollinger Shipyards in Lockport, Louisiana.
The Super 116E Class is one of five LTI jackup rig designs. The The first of three 234-ft PSVs with 3,000 metric tons (3,360 tons)
Super 116E provides for up to 2,000 kips greater payload than its of cargo capacity is scheduled for delivery in March 2010, with two
predecessor and is designed to drill in up to 350 ft (107 m) of wa- additional vessels to be delivered later that year. The clear deck on
ter in moderate environmental locations. The rig can be outfitted to this class of vessel will be 175 ft x 47 ft (53 m x 14 m) with 9,000 bbl
handle high-temperature/high-pressure wells. of liquid mud and 6,000 cu ft of dry bulk capacity.
Houston-based Bee Mar is marketing its newbuild fleet for deep-
Rolls-Royce unveils new vessel design water E&P, deep shelf work, construction, seismic, and well servic-
Rolls-Royce unveiled a new vessel design, UT 790 CD, at Nor-Ship- es. Van C. DeWitt is president and CEO.
ping in Oslo, Norway, in June. Its hull “pierces” through the water rather
than riding on top of the waves, allowing the vessel to run continuously Signal delivers upgraded Frontier Driller
at service speeds regardless of the sea state, reducing fuel consump- Signal International has delivered the semisubmersible Frontier
tion and improving crew comfort, the company says. At speeds of 14 Driller after completing a major upgrade and modernization.
knots and in harsh weather conditions, tank tests have shown no water The work included a new derrick (single lift) and new BOP handling
above forecastle deck level, according to the company. structure; addition of winch decks (four corners), new riser decks and
Features of the new design include a repositioned engine room new ROV deck; raising a mud pit roof; converting chain lockers to bulk
astern, wet exhaust system, the same fiber and rope capacity operat- mud tanks; and adding a new cement deck. A new helicopter deck and
ing with four secondary winches as a traditional anchor handler has aft lifeboat deck also were set and secured, Signal says.
with six, according to Rolls-Royce, and the power and capacity to All pipe systems were renewed, modified, or replaced and tested,
handle cable, chain, and rope down to 2,000 m (6,562 ft) and fiber along with the rig’s HVAC systems. The entire electrical system on
rope down to 3,000 m (9,843 ft). the rig was re-powered, including all four mains, all new SCR, and
Other features include extra buoyancy in the cargo railings and MCC.
a Rolls-Royce Safer Deck Operations system including anchor han- The final phase of the project consisted of fabricating and installing
dling cranes, chain wheel changer, and torpedo anchor handling 1,000 tons (907 metric tons) of steel, adding two pontoon sponsons and
system. four columns to the rig. Signal fabricated one new column, while sub-
One new feature of the vessel, Rolls-Royce points out, is the intro- contracting and managing the fabrication of the remaining components.
duction of a three-screw propulsion system that combines a center Each column was assembled and outfitted with ladders, man-ways, and
controllable pitch propeller with two azipull thrusters with nozzles. vent piping, then blasted and painted internally and externally. 

22 Offshore July 2009 • www.offshore-mag.com

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__________________

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DRILLING & PRODUCTION John Waggoner • Houston

Brazil’s drilling prospects RoboSpider revolutionizes particularly time-consuming and exhausting

remain buoyant drilling riser tripping when done manually,” Francis says.
A third well in the Tupi region of the A new robotic “spider” tool to run drilling That means on a single run of 100 sec-
Brazil’s Santos basin offshore reinforces es- risers represents a breakthrough for opera- tions, the RoboSpider can save more than 16
timates of the potential for 5 to 8 Bbbl of re- tional safety, efficiency, and even preload on hours of rig time. Counting the return trip,
coverable light oil and natural gas in the sub- offshore rigs. those savings would be potentially doubled.
salt reservoirs in ultra deepwater. The well Running risers is one of the most danger- “The sheer speed of the thing will save
is being drilled toward deeper objectives. ous jobs on a rig, since personnel are ex- the price several times over per year,” Fran-
Located 33 km (20.5 mi) northeast of the posed precariously over the moonpool for cis says. “It lets contractors focus on the
pioneer I-RJS-628 hole, the new well, called hours at a time and are at risk of falling ob- drilling.”
4-BRSA-711-RJS (4-RJS-647), confirms good jects from the deck above while they manu- Precision LVDT sensors and its ICAN soft-
quality reservoirs of oil similar to that found be- ally bolt together sections of pipe. ware from Parker allow the robot to communi-
fore in Tupi, Petrobras says. Informally known The new RoboSpider tool from Houston- cate between a central processor on the main
as Iracema, this third well is in the Tupi Assess- based Cameron eliminates these hazards with control box and sophisticated modules on each
ment Plan area, in waters where the depth is a touch of a button while ensuring that each arm. The instruments allow accuracy within
2,210 m (7,251 ft) from the water line, some 250
km (155 mi) off the coast of Rio de Janeiro.
The discovery was proved via light oil (ap-
proximately 30º API) samplings from reser-
voirs located at a depth of some 5,000 m (16,404
ft) and communicated to Brazil’s regulatory
authority ANP. After completing the drilling,
the consortium formed by operator Petrobras
(65%), BG Group (25%), and Galp (10%) to ex-
plore block BM-S-11, where Tupi is located, will
carry on with drilling other wells in the area.
In other news, Petrobras well 4-BRSA-709
(4-SPS-60), known as Iguaçu, has proven the
presence of another accumulation of light
oil in the BM-S-9 concession in the Santos
basin, the company says. Further evaluation
will continue with the drilling of another well
in this evaluation plan area to begin shortly,
the company says.
Repsol also has a new gas and condensates
find with the Panoramix well in the shallow
waters of the Santos basin offshore Brazil.
The well is in block BM-S-48 in water
depths of 170 m (558 ft). Production tests
The RoboSpider pictured here is the next generation of technology for tripping risers. Photo by
showed a maximum gas flow of 378,600 cm/d Jordan Schupbach.
(13.37 MMcf/d) and 1,570 b/d of condensate
in sands of between 4,410 and 4,480 m (14,469 section of riser can be joined perfectly at a +/- 3%, a parameter that would be difficult to
and 14,698 ft). The results of these tests in- pace much faster than any human can achieve, achieve consistently with the best manual crew
dicate a possible maximum flow of 850,000 according to Dale Francis, president of Torq/ even during ideal dry and sunny operating con-
cm/d (30 MMcf/d) of gas and 3,520 b/d of Lite and the developer of the technology. ditions.
condensate, the company reports. “The RoboSpider is unbelievably accu- Francis began working on this project about
Ecopetrol Oil Gas do Brasil has signed rate,” says Francis. two years ago when Cameron expressed in-
a Participation Agreement with Anadarko In operation, the robot engages all six terest in the technology. The Houston and
Exploracao e Producao de Petroleo e Gas modules around the flange simultaneously Louisiana-based inventor holds the patent for
Natural for a 50% participation in the BMC- and tightens each bolt within programmable today’s industry standard for running risers
29 concession in Brazil. BMC-29 is in the parameters. Instead of manually tightening that he developed in the mid-1990s. “This is
Campos basin in water depths between 30 each bolt in pairs at 180º, the RoboSpider an automated version,” he says.
and 100 m (98 and 328 ft) and covers 179 sq spins the six bolts perfectly and all at once. With the equipment currently in the ad-
km (69 sq mi). The concession was awarded Apart from avoiding the potential for hu- vanced prototype stage, engineers are work-
to Anadarko during the sixth round of auc- man error while joining sections of riser due ing to fine tune the RoboSpider for commer-
tions in Brazil and it is currently in the ex- to fatigue, poor light conditions, or simple cial deployment. Francis sees the RoboSpider
ploratory phase. mistakes, the RoboSpider translates into in- becoming a new industry standard within a
Separately, US wellhead manufacturer Dril- stant improvement in HSE conditions on the year.
Quip has a three-year, $180-million wellhead rig. Not only that, the robotic device offers an Its elegant design is also user-friendly: an
deal to supply Petrobras in Brazil. Petrobras enormous advantage in terms of saving time. operator can learn to use the robot in a few
also has awarded GE Oil & Gas a three-year, “I believe we will save, conservatively, any- hours of training, he says
$250-million frame agreement to supply 250 where from six to 10 minutes on each flange “By the time it is installed, the operator pret-
VetcoGray subsea wellhead systems. The first while running. To pull the risers it will save ty much knows how to run it,” Francis says.
unit is scheduled for delivery this month. even more time since this part of the job is Installation should take less than a day. 

24 Offshore July 2009 • www.offshore-mag.com

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Baker Hughes Advancing Reservoir Performance

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𰁴𰀁 𰀤𰁉𰁆𰁎𰁊𰁄𰁂𰁍𰀁𰀢𰁖𰁕𰁐𰁎𰁂𰁕𰁊𰁐𰁏𰀛 Advanced chemical management and surveillance prevent
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𰁴𰀁 𰀱𰁓𰁐𰁅𰁖𰁄𰁕𰁊𰁐𰁏𰀁𰀥𰁆𰁄𰁊𰁔𰁊𰁐𰁏𰀁𰀴𰁆𰁓𰁗𰁊𰁄𰁆𰁔𰀛 Surveillance, validation, visualization, and analysis
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©2009 Baker Hughes Incorporated. All Rights Reserved.

©2009 Baker Hughes Incorporated. All Rights Reserved. 25774

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GEOSCIENCES Gene Kliewer • Houston

Electromagnetic wrap-up
If the original plans hold, OHM Ltd. will have initial results from a Magnus
controlled source electromagnetic (CSEM) survey in the UK North Penguin Cluster
Sea which will apply OHM’s well integration with seismic and elec- Magnus South Snorre
tromagnetics (WISE) technology. Otter
Statfjord North
The survey was scheduled for June on Nautical Petroleum’s Krak-
en discovery in North Sea block 9/2b. It follows a pilot program in
the area earlier this year. CSEM data taken by OHM was integrated Eider
Devron Thistle
with the operator’s existing well and seismic data. The results of
applying WISE indicated the resistive body associated with the dis- Kestrel
Merlin
Osprey
covery extends north and south of the well. Dunlin

••• Tern
Cormorant area Gullfaks
Melvile Skye
Electromagnetic Geoservices AWA (EMGS) has won a contract Hutton Northwest
for 3D electromagnetic data acquisition offshore Newfoundland, Brent Oil
Canada. The $12-million award is for work in the second half of this Hutton Dole
year. The Siem Mollie will acquire the data. Pelican
At the same time, EMGS is restructuring the company to reduce Brent Oil
Heather
costs, focus on key areas, and improve financial results.
Lyell
Strathspey
••• Ninian

Columbia B Alwyn
Survey area North

Oil field
Staffa
Wells

Contours

Map of the Quad 211 area offshore UK in the northern North Sea.

cluding Brent, Ninian, Hutton, and Cormorant. The new 3D survey

is expected to improve understanding of the geology of the area and
uncover additional hydrocarbon accumulations.
MV Boa Thalassa has completed CSEM data acquisition off Senegal for Shell.
The Ramform Viking is running the survey with 16 streamers at 50
m (164 ft) separation.
First Australian Resources says CSEM data acquisition over part “We expect to unveil new perspectives on the prospectivity of this
of its Sangomar Offshore, Rufisque Offshore, and Sangomar Deep historically prolific area,” says Per Arild Reksnes, president, Marine
Offshore blocks in Senegal, West Africa is complete. The survey EAME. “Previous knowledge of Quad 211 is piecemeal and includes
was funded by Shell and used the MV Boa Thalassa. a number of older surveys. This single, contiguous high density
The purpose of the survey is to help Shell decide whether to exer- dataset will offer a clearer image of the entire play.”
cise its option to acquire 70% of the license area and to commit to a
•••
second renewal period which would include drilling a well.
A 2D survey was scheduled to begin offshore India using the Munin
Gippsland basin Explorer. SeaBird Exploration Ltd. contracted with Fugro Data Services
off Australia to be researched for the program.
CSIRO and the Victorian Department of Primary Industries plan •••
to combine for a study of the Gippsland basin. The three-year agree-
ment aims to assist energy companies to better explore for petro- Petrobras now has authorization from environmental agency Ibama to
leum off Victoria. conduct 4D seismic work offshore Campos basin in Albacora, Espadarte,
“CSIRO techniques will measure various properties of rock cores, Marlim, and Barracuda/Caratinga, according to reports from Brazil.
organic matter, and formation fluids,” says project leader Dr. James
•••
Underschultz. “They will model the basin’s histories, including the
generation, migration, and trapping of oil and gas. Dalia, Rosa, Girassol, and Jasmine fields offshore Angola are the
“This will improve the characterization of Victoria’s sedimentary subject of a seismic reservoir characterization by CGGVeritas for To-
basins and the mechanisms that drive the petroleum systems, which tal E&P Angol. CGGVeritas’ Hampson-Russel Software & Services
could contribute to an increase in resource estimates, attracting in- company will perform the work using its proprietary global 4D inver-
dustry to invest into the state.” sion program StratiSI 4D.
The project is scheduled for completion in 2011. “With the increasing number of 4D vintages available over produc-
ing fields, global 4D inversion is better constrained and yields results
New survey reports that are more readily interpretable in terms of production effects,”
Petroleum Geo-Services ASA and TGS-NOPEC are joining for a says Philippe Doyen VP, R&D, at Hampsopn-Russel. “In particular, it
multi-client high-density 3D survey in Quad 211 of the East Shetland can provide quantitative estimates of reservoir properties, such as fluid
basin in the UK North Sea. saturation, with more certainty and capture the movement of fluids and
Quad 211 is home to several producing fields in the North Sea, in- changes in pressure with greater accuracy.” 

26 Offshore July 2009 • www.offshore-mag.com

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L AT I N A M E R I C A

Brazil’s Santos basin: an emerging giant

G
lobal research consultants Wood Mackenzie has identified
the key Brazilian infrastructure projects ready to take shape
as the country develops the subsalt hydrocarbons of the San-
tos basin over the next 20 years.
Some are under construction already, some are at the
planning stage, but many are conceptual with uncertainties ahead.
Even with potential for delays, WoodMac says it is certain that the
Santos basin will turn Brazil into a global oil and gas power-house
over the coming decades.
Starting with fairly limited infrastructure, the analysts say over
the next 10 or 20 years, national oil company Petrobras will lead
the way in transforming the vast (200,000 sq km [77,220 sq mi])
Santos basin into an intricate network of production platforms, off-
shore storage facilities, oil and gas pipelines, and, possibly, some
sophisticated gas facilities (such as floating LNG and floating GTL)
with technologies not yet commercially proven.
The fields discovered to date are expected to ramp up oil produc-
tion from Santos from a very minor 4,000 b/d of oil in 2008, to some tral processing hubs.
675,000 b/d in 2015 and perhaps 1.3 MMb/d in 2020. Gas produc- A key challenge facing Petrobras and its subsalt partners is how
tion will ramp up similarly, although the pace will be more directly to dispose of the gas in a commercial and environmentally friendly
dictated by market growth. manner. Wood Mackenzie currently models peak oil production at
First off the ground will be the commissioning of the Mexilhão the Tupi field of 900,000 b/d in 2023, at which time the field could
gas field, in January 2010, WoodMac says. Phase 1 of the BS-500 be producing some 1.2 bcf/d of gas. Of that gas, some will be used
Pole development will start up later in 2010, tying back to the Mex- for in-field fuel requirements and another 10% or so is CO2 that will
ilhão facility. In early 2011, the Tupi pilot test will come onstream, need to be stripped out (creating a major disposal issue). Ideally, the
involving an FPSO vessel and a new gas pipeline to Mexilhão. Petro- CO2 could be re-injected to help with pressure maintenance and this
bras also is working toward installing two more EWTs in the sub- is to be examined by Petrobras.
salt area, on the Guará and Iara fields. Here is an overview of work But, even so, there will still be some 900 MMcf/d of gas (4 tcf
under way: of reserves) that could be expected to be available for commercial
• Mexilhão, a 2-tcf gas field will go onstream in 2010 sale from Tupi (although this would be reduced if gas injection was
• BS-500 Phase 1 will start up in early 2010, with 1 tcf of gas and implemented for pressure maintenance).
300 MMboe The gas issue is magnified because the Júpiter field in Santos is
• Tupi extended well test (EWT) came onstream in May 2009 and believed to be gas-rich. The CO2 content is higher (believed to be
a larger, 100,000 b/d pilot test is scheduled to start-up in late over 20%, although data so far released on this field is minimal) but,
2010 or early 2011 even after stripping out contaminants and accounting for in-field
• Guará and Iara EWTs are expected to begin by 2011, but these usage, initial estimates made by Wood Mackenzie suggest that the
have not yet been contracted, and similar pilot tests to that on field could contain around 13 tcf of sales gas.
Tupi will follow. Some of the gas commercialization concepts under evaluation
Assuming all goes well with the Tupi EWT and pilot, as well as include conventional pipelines to shore, floating LNG, compressed
financing (not an easy task in today’s environment), the infrastruc- natural gas (CNG), floating gas-to-liquids (GTL), and gas-to-wire
ture should rapidly expand after 2012 as Petrobras and its partners (GTW). Indeed, the size of the gas resource is such that there would
ramp up production from the subsalt. However, other projects else- be room for several gas transportation options to run in parallel. The
where in the basin also should start to come onstream, notably more first two options are the most likely, but judging by the Mexilhão
conventional light oil and gas plays in shallow water, as well as ex- experience, pipelines will face serious challenges in obtaining envi-
pansion of Mexilhão and BS-500. ronmental permits for the onshore lines and gas plants, as well as
Besides Tupi, eight other subsalt fields have been discovered so technical challenges such as hydrate formation given their depth
far in the Santos basin. Development of these fields will likely be and length (300 km [186 mi]).
on a phased, modular basis similar to Tupi, with both FPSOs and Also, floating LNG is not yet a proven technology, although this is
DCUs being used, depending on specific circumstances. Existing perhaps as good an area as any to test it, the analysts say.
discoveries will require a minimum of perhaps 30 production mod- In many ways the subsalt fields are well positioned in that they
ules (including those on Tupi), much more if reserves are proved up lie equidistant from Brazil’s two key gas demand centers, São Paulo
at the higher end of expectations, WoodMac says. and Rio de Janeiro, and also with easy access to markets in the At-
Each module will be more-or-less a stand-alone development, but lantic basin should the LNG export option be pursued. Closer to
significant synergies are expected in the areas of oil pipelines (al- home, gas hungry neighbor Argentina would be an obvious market,
though most oil is expected to be tanker-loaded offshore, at least in depending on whether or not imports from Bolivia materialize. 
the early years) and gas pipelines, as well as in day-to-day operations
and logistics. Also, should more novel methods of gas commercial- Editor’s note: This article is a summary of a report recently published by Wood
ization be chosen, it would make sense to have just one or two cen- Mackenzie titled Brazil’s Santos basin: an emerging giant.

28 Offshore July 2009 • www.offshore-mag.com

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Image courtesy Petroleo Brasileiro SA (Petrobras)

Image © Addax Petroleum Corporation

Applying proven technology

to new applications
Wellstream - leading provider of
flexible riser and flowline solutions

www.wellstream.com

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Tupi extended well test sheds light

on Brazil’s subsalt bonanza
Technical and regulatory obstacles must be overcome
for Brazil to be one of the world’s top oil producers

B
razil had another reason to celebrate Peter Howard Wertheim tion-sharing agreements, and the creation of
its May 1 national Labor Day bash. Contributing Editor another state-oil company to administer the
The new reason was the start-up of presalt hydrocarbons. The new state-owned
first oil at the mega Tupi field in the company would be modeled after Norway’s Pe-
Santos basin. This first extended well toro, which does not engage in E&P but man-
test (EWT) of the subsalt formations began Brazilian ages petroleum finances as an equity company.
producing at a rate of 14,000 b/d of oil and President Luiz Mines and Energy Minister Edison Lobão has
should peak around 30,000 b/d, operator Inacio Lula da advocated strongly for this proposal, and the
Petrobras says. Silva (in blue) promise of federal proceeds for social projects
Petrobras has not reckoned the size of the holds a small appeals to many segments of Brazilian society.
BM-S-11 reserves beyond its initial estimates of barrel of oil
from Tupi sub-
5-8 Bbbl of recoverable light oil. The amount,
salt reserves,
New frontier
however, was considered staggering enough alongside
The EWT tests the principal carbonat-
to inspire President Luiz Inacio Lula da Silva to Petrobras ics reservoir of the Tupi field and possibly
declare that “God is Brazilian.” president José one of the secondary reservoirs, to gather
The celebrations surrounding the Tupi EWT Sergio Gabri- information for optimizing the pilot project
are not just about the technical success of pro- elli. Photo courtesy of Petrobras. scheduled for 2010 and ultimately the defini-
ducing subsalt oil and gas in Santos and the tive systems of the Tupi field, officials say.
emergence of Brazil as one of the world’s Top 10 (25%) and Galp-Energia (10%). With the EWT, Petrobras opens the develop-
petroleum producers. They also mark a new era Tupi’s output could peak at some 1 MMboe/d ment of a new exploratory frontier. These are
and a “second independence” for the country. by 2022, according to Wood Mackenzie, which reservoirs in microbial-type carbonatic rocks
“Today, one quarter of the world’s deep- considers the field “one of the most significant (originating from microorganisms that fossil-
water oil production is in Brazil,” says Petro- oil discoveries in the last 20 years.” ized millions of years ago) located at a depth of
bras’ president Jose Sergio Gabrielli. “Our The consultancy points out that Tupi was some 5,000 m (16,404 ft.) from the seabed plus
country offers the world’s most realistic off- surpassed only by the 12.9 Bbbl Kashagan 2,000 m (6,562 ft) from the waterline.
shore opportunities.” field found in Kazakhstan in 2000. Within “The target is to verify how the reservoirs
Brazil’s own hemisphere, there has not been behave when submitted to prolonged pro-
Brazil’s subsalt a discovery of this magnitude since Cantarell duction, verify if there is hydraulic commu-
viable at $35-$40/bbl in 1976. At a time when a retreat in oil prices nication in the reservoir, verify mechanisms
Enthusiasm for the EWT at Tupi owes in and economic recession have taken a bite out of possible damage to the geological forma-
part to Gabrielli’s assessment that explora- of capital spending in other regions, national tion, and check outflow conditions of fluids
tion and production (E&P) of Brazilian sub- oil company Petrobras is budgeting $174.4 being produced,” José Formigli, executive
salt hydrocarbons is viable, even with oil billion for capex through 2009-2013 period, manager of Petrobras’ E&P presalt program
prices at $35/bbl to $45/bbl. an increase of 55% over the 2008-2012 plan of tells Offshore magazine.
Exploration costs apparently are on a down- $112.4 billion announced a year before. Tupi’s initial development phase includes
ward trend for the Brazilian subsalt, or “pre- Petrobras plans to invest $29 billion in the the FPSO Cidade de São Vicente with a turret
salt” as it is commonly known in the country. presalt area to 2013, including $19 billion in contracted from BW Offshore for 10 years.
At the start of Tupi exploration, the first well Santos basin. By 2020, Petrobras expects to The contract has an option for another five
cost $270 million. However costs have since invest a total of $111 billion in presalt projects. years, plus an option to purchase the vessel
declined to $90 million per well, and recently While celebrating Tupi’s first oil, Lula urged at the end of this period. The FPSO is a Suze-
as low as $60 million, Petrobras officials say. his ministers to work faster to deliver propos- max category with 140,000 dwt, anchored at
Gabrielli praised the pace with which als for a new regulatory framework to explore 2,140 m (7,021 ft) water depth for the EWT
Tupi reached long-term tests, having been presalt. “There isn’t one country in the world at well 1-RJS-646.
discovered in 2006. “No other discovery of that discovered large reserves of oil and did Tupi’s 28-30º API oil will be transported
this magnitude was able to produce its first not change its regulations,” he said. 290 km (180 mi) to the coast by relief ships.
oil within three years’ time,” he says. Analysts speculate Brazil may implement The natural gas produced during the EWT
The BM-S-11 block is operated by Petro- a hybrid system based on the present conces- will be used to generate energy for the pro-
bras (65%) in partnership with BG Group sion model, with higher royalties, produc- duction unit. Any remaining will be flared.

30 Offshore July 2009 • www.offshore-mag.com

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BrasilSPAN
Basin-wide, Regional Program

BrasilSPAN Programs:
 39,000 km of data from Pelotas to Foz do Amazonas
 15,000 km of data from Campos, Santos and Southern
Santos available immediately
 Designed to:
- Improve imaging in the presalt basins of
the south and the depositional sequences
in the north
- Investigate crustal architecture
- Understand regional source distribution
and heat flows
- Develop an improved conjugate model for
Africa and Brazil with AfricaSPAN™ surveys

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presalt geophysical study of Brazil’s prolific offshore
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regional geoscience experts and imaged by GXT, leaders
in advanced imaging, ION’s BrasilSPAN is comprised of
three surveys:
           ges the
presalt, extends existing plays and is defining new
plays (shown in red).
                 
help define the limits of the Santos Basin
petroleum systems, with a goal of establishing new
petroleum systems in the Pelotas Basin (shown in
green).
       
extend to the northern limits of the Foz do
Amazonas, providing the first consistent PSDM
data set for all of offshore Brazil (shown in yellow).
BrasilSPAN delivers unique insights that are unlocking new
prospect opportunities.

_____________

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L AT I N A M E R I C A

Technology challenges under control

Despite a list of mind-numbing technological challenges, José on the recovery factor of the reservoir.
Formigli, manager of Petrobras’ E&P presalt program, tells Offshore Offshore: Some argue that under Brazilian law CO2 cannot be re-
magazine why Petrobras is certain it has the technology to master the leased into the atmosphere. Does the environmental pressure present
presalt: an obstacle?
Offshore: Petrobras E&P officials claim that there are no Formigli: It’s not true that the Brazilian law forbids CO2
insurmountable technical challenges in Tupi... emission. As previously explained, Petrobras is separating
Formigli: No doubt about that, in spite of some analysis and reinjecting that contaminant on the produced gas flow
done by “specialists” who do not fully understand presalt as a voluntary policy.
characteristics and/or simply imply from previous Campos Offshore: Some skeptics say that to get to the presalt
basin developments that exactly the same approach will oil Petrobras will have to sink tons of equipment to depths
be applied to Santos basin presalt production develop- where the water pressure would crush a sinking ship like a
ments. soda can. Also, when oil as hot as 100º F (38º C) suddenly
Offshore: Some critics say Petrobras is adapting deep- meets pipes rising through extremely cold water on the
water post-salt (like in the Campos basin) E&P technology ocean bottom, the paraffin could solidify and block the
to presalt and that this won’t work. pipes.
Formigli: Petrobras is extending the use of deepwater Formigli: Flow assurance issues, like wax and hydrate
technology, which has in Campos basin one of the most José Formigli says control, are very common in Campos basin operations and
advanced worldwide sites of application, for the presalt in Petrobras has the tech- do not represent any new challenging issues.
nology to master the
Santos basin. Whenever necessary, adaptations or even Offshore: Some specialists argue the salt layer instabil-
ultra deepwater subsalt
new developments are done to guarantee the technical ity makes horizontal drilling very difficult.
operations. Photo cour-
feasibility for the safe and economical exploration effort as Formigli: Considering the vertical permeability varia-
tesy of Petrobras.
well as production development of the discoveries. tion that may be present throughout the thick carbonate
Offshore: What are some of the main differences between presalt producing formation, the traditional mindset applied to Campos basin
and deepwater post-salt technologies? deepwater relatively homogeneous sandstones is not directly ap-
Formigli: Drilling through thick salt layers demands special design plicable to Santos basin presalt. Of course deviated and multilateral
and execution procedures for achieving the producing zones. Mi- wells, as well as horizontal ones (currently less probable) may be ap-
crobialites are the type of carbonate from the production formation, plied in the future as alternative well geometries to increase reserves’
demanding special studies for reservoir characterization. High CO2 recovery, besides productivity per well.
content in the produced gas plays a significant role in those adapta- Offshore: Getting workers and equipment to and from the offshore
tions that are necessary for the production development projects. platforms is a logistical challenge. Helicopters cannot cover the 340
Special metallurgies have to be adopted for well and subsea equip- km (211 mi) to Tupi and other offshore sites and back without running
ment, as well as some components of processing plants. In order to out of fuel.
reduce the CO2 atmospheric emissions, Petrobras will reinject all the Formigli: Mid-distance logistical support hubs are on the drawing
separated volume from the gas flow. Besides the concrete environ- board and no final decision has been taken yet about which type of
mental benefit, there may be a significant beneficial collateral effect marine structure will be used.

The 14,000 b/d production of oil is associated mechanisms, no evidence of compartments logical scenario will be analyzed and used
with 500,000 cm/d (17.66 MMcf/d) of gas. close to the wells, good reservoir quality in as lessons to be applied for the pilot test
The FPSO is gathering data about the both wells, and no significant corrosion. From in 2010, including reservoir, materials, and
field to be used for long-term production so- a flow assurance point of view, the absence of flow assurance.
lutions at Tupi as well as for future presalt significant inorganic or organic precipitates “A better understanding of the reservoir
developments, Formigli says. would be optimum results of the EWT.” characteristics will ensure a better evalu-
According to the Cenpes executive, the age ation of the pilot project, as well as better
Key takeaways of the reservoirs is Aptian, a subdivision of choices for the future definitive production
from the EWT the Cretaceous. These reservoirs are micro- strategy for the presalt,” says Sombra.
Cristiano Sombra, coordinator of Prosal bial carbonates, an unusual type of reservoir The EWT will run 15 months with output
(the technological program for production rock deposited in a lake formed during the peaking at roughly 30,000 b/d. The FPSO
and development of presalt reservoirs at South Atlantic rift. When this lake became will be connected to two wells. Testing of
Petrobras’ R&D center, Cenpes) says the hyper saline, a thick salt layer was deposited well 1-RJS 646 will continue during the first
EWT at Tupi represents an important lesson above the microbial carbonates. During the nine months and the second well 9-RJS 660
for the future. evolution of this lake these became an open in the remaining six months.
“The EWT is expected to yield answers sea, normal marine salinity prevailed, so the By year-end 2010, after the EWT is complete,
and information related to reservoir behav- deposition of evaporites ceased. The role of the Tupi Pilot Project is scheduled to begin with
ior; reservoir flow and pressure behavior; the salt was crucial for petroleum accumula- the FPSO Angra dos Reis, capable of processing
reservoir compartmentalization and degree tions below: the salt was the seal that prevent- 100,000 b/d of oil, as well as 5 MMcf/d of natu-
of intercommunication; complete sampling ed the petroleum from migrating upwards. ral gas. The vessel has storage capacity for 1.6
of reservoir rocks and fluids; and formation An intact salt layer holds the oil under- MMbbl of crude oil, says Formigli.
of damaging mechanisms and control. In ad- neath like an impermeable lid. The salt also The pilot project will consist of five pro-
dition, the EWT will give information about has a high rate of temperature conductivity, ducing wells, two wells alternating injec-
equipment behavior in the presence of CO2 (8 allowing the area below to transfer its heat tions of water and gas, and one water injec-
- 12%), as well as the subsea flow assurance.” and cool off. Because the salt crust is flex- tion well. Some of these wells will be drilled
Sombra explains that “the optimum results, ible, it acts like a cushion, preventing pres- before first oil of the pilot test.
from a reservoir point of view, would be a sure from being transmitted to other layers. According to Formigli, two of the wells
sustained high flow rate, controlled damage All EWT results from this complex geo- will be directional, with an average depth of

32 Offshore July 2009 • www.offshore-mag.com

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L AT I N A M E R I C A

ers of neighboring blocks on joint exploitation

of the deposit, as if it were a single block.
“But, negotiating a unitization agreement
is quite complex, since very large amounts of
money are involved and companies must come
to an agreement about complex technical is-
sues. One of the issues is the measurement of
the reserves of each block for the purposes of
sharing the income proportionally and criteria to
renegotiate such sharing, should an unbalance
arise in the proportion initially established,” ex-
plains Oswaldo Dela Torre, an associate lawyer
at the energy, petroleum, and mineral sector of
Mattos Filho Advogados in São Paulo.
“The regulation of the unitization between
blocks already granted by the ANP and those
not yet granted, has been considered by the
government as the main obstacle to the conti-
nuity of the bidding rounds for the presalt ar-
eas. It has been said that the ANP is expected
to submit for public consultation a bill of law
which is intended to regulate the issue,” Dela
Torre tells Offshore magazine.
An artist’s conception of the Tupi extended well test. The FPSO is unusual for its turret. Courtesy of One uncertainty is what happens to presalt
Petrobras. reserves found adjacent to areas not yet drawn
up by the government for concession. In this
6,500 m (21,325 ft) and one horizontal well Brazil as the world’s fourth-largest oil pro- case, the government, as the licensing author-
with a total length of 6,400 m (20,997 ft). ducer after Saudi Arabia, Russia, and the US. ity, has grounds to argue that new regulations
Brazil currently ranks 13th. must be implemented to address unitization
Doubling Brazil’s production The discovery of Brazil’s bonanza has issues before any new areas can be tendered.
Petrobras is required to declare Tupi’s com- implications for the industry far beyond the This has not been regulated yet and eventually
mercial viability to the National Petroleum and country’s borders. Petrobras’ partner, Galp must be resolved, Dela Torre says.
Biofuels Agency (ANP) by December 2010. Energia of Portugal, for example, now plans The unitization question came to a head
Tupi’s commercial production is expected to shift its focus to E&P from refining and after the recent publication of updated results
to begin in 2013 with 219,000 b/d of oil, rise marketing, thanks to its stakes in some of of the drilling activity performed in block BM-
to 368,000 b/d in 2014, 582,000 b/d in 2015, Brazil’s leading Santos discoveries, said S-22, operated by ExxonMobil, in consortium
952,000 b/d in 2016, and 1.315 MMb/d in company CEO Manuel Ferreira de Oliveira. with Hess and Petrobras, where the Azulão
2017. By 2020, Petrobras projects presalt out- “The Santos basin is one of the largest well was drilled. If the 5 and 10 Bbbl reserve
put to reach 1.815 MMb/d from 23 presalt pro- geological jewels that nature has offered to estimates are confirmed, they would surpass
duction platforms in place. the oil and gas industry in recent times,” he the reserves of Tupi and ExxonMobil would
This figure would almost double Brazil’s said, adding the basin would be profitable at be the operator of the project with the largest
total oil output, now standing at an average current prices. estimated deposit in the presalt area.
of 1,900 b/d, around 80% of mostly Campos BG Group is another of several foreign The BM-S-22 block is adjacent to the
basin heavy oil. companies betting heavily on Brazil’s pre- super giant Carioca field where Petrobras,
The current exploration focus is in the three salt. The British company has interests in along with Repsol YPF and BG Group, has
southernmost basins: Santos, Campos, and seven concessions in the Santos basin cov- found oil. The argument that the reservoir at
Espirito Santo, covering a length of over 800 ering a total area of approximately 7,450 sq Azulão extends to blocks covered by Petro-
km (500 mi), with an average 200-km (125-mi) km (2,876 sq mi). BG’s CEO Frank Chap- bras’ concessions gave rise to the discussion
width. Santos basin has the largest number of man said: “The Santos basin is now one of about ExxonMobil’s obligations to negotiate
presalt reservoir discoveries up to now: Iara, the world’s most important hydrocarbon a unitization agreement at such time as those
Carioca, Guará, Parati, Bem-Te-Vi, Caramba, regions and will be a major source of global reserves are confirmed, says the lawyer.
Júpiter, Iguassu, Azulão, and Corcovado. supply for decades to come.” The basics for unitization agreements are
The whole presalt region may contain as regulated already by Article 27 of Brazil’s Pe-
much as 100 Bbbl of oil, claims Marcio Mel- Reform required troleum Law. ANP’s concession agreement
lo, a former Petrobras geologist, now head for unitization model contains clauses which deal exclusively
of Brazil’s Petroleum Geologists Association Petrobras may have technological chal- with unitization, and these are in some cases
and president of the consulting company lenges under control but most companies compulsory. Clearer and more precise rules
High Resolution Technology (HRT) Petro- operating in the presalt region face the ques- to regulate unitization agreements in Brazil
leum in Rio de Janeiro. tion of unitization when hydrocarbon reser- would certainly provide greater regulatory
Tupi is just one of several “elephant” finds voirs touch two or more concession blocks. clarity for the sector, concludes Dela Torre. 
of more than a billion barrels each. Accord- According to a proposed unitization agree-
ing to London-based BP Plc, which ranks ment, the owner of an exploratory block over Editor’s note: Contributing Editor Peter Wertheim is
countries by production, if these finds prove an oil deposit which extends to other neighbor- based in Rio de Janeiro, and can be contacted by e-mail
to be commercially viable, they may position ing blocks is obliged to negotiate with the own- at [email protected].

34 Offshore July 2009 • www.offshore-mag.com

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20 yards in 16 countries –
Keppel Offshore & Marine has the
right people, strong execution power
and proven technology to be the
industry’s choice solutions partner.

      

    
       

Near market, near customer

Keppel Offshore & Marine Ltd 50 Gul Road Singapore 629351 Tel: (65) 6863 7200 Email: [email protected] www.keppelom.com __________ Co Reg No. 199900642R
Keppel Offshore & Marine Technology Centre A member of Keppel Offshore & Marine Limited 31 Shipyard Road Singapore 628130 Tel: (65) 6591 5450 Fax: (65) 6265 9513Email: [email protected]

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Offshore US-Mexico exploration:

Cross-border perspectives
E
arly 2009 witnessed the installation of Robert Pawlowski production sharing) by non-Mexican oil-
the topsides for the Perdido develop- Chevron Energy Technology Co. company operators – this in spite of 13 years
ment regional host spar (partners BP, of declining oilfield production in Mexico
Chevron, Shell) in the ultra deepwa- (as exemplified by the declines at the giant
ter (> 5,000 ft or 1,500 m) of Alaminos Ricardo Fernandez Cantarell field).
Canyon protraction area block 857 (US sec- Fugro Chance de Mexico On a slightly more positive note, the re-
tor of the Gulf of Mexico). The Perdido spar, cent October 2008 Mexican oil reform opens
moored in some 2,380 m (7,800 ft) of water, the door slightly wider for possible increased
will act as the main hub and gathering/pro- involvement by international oilfield service
cessing/exporting center for the nearby In this first in a series for Offshore, companies (already active and vitally integral
Great White, Tobago, and Silvertip fields of we take a close look at the geopolitical to Mexico’s oil industry). The 2008 oil reform
Alaminos Canyon. Perdido can provide ac- and geotechnical aspects/issues asso- also may strengthen Pemex by increasing
cess to other discoveries within a 48 km (30 ciated with cross-border oil fields. First, public oversight and strengthening Pemex’s
mi) radius, and is designed to produce as Javier H. Estrada Estrada (Analítica En- internal governance and efficiency.
ergética) illuminates some of the chief
much as 100,000 b/d of oil and 200 MMcf/d One issue not adequately addressed by
issues and hurdles facing the develop-
of natural gas (130,000 boe/d). Great White, existing frameworks for US-Mexico cross-
ment of cross-border oil fields. Other
Tobago, and Silvertip, set to produce in 2010 border relations is the development of fields
aspects of GoM-wide geology, develop-
from the Perdido Fold Belt structural trend, ment, and innovation will be addressed that truly straddle the border, or fields whose
will constitute the first commercial offshore in future installments of the series. development has the potential for draining
production from deepwater Gulf of Mexico hydrocarbons from one side of the border to

The impressive discoveries being racked up

on the US side of the border contrast severely
with the lack of deepwater drilling
in Mexican waters just south of the border.
Lower Tertiary reservoirs (Paleogene Wil- Tertiary Wilcox Trend currently hosts over the other. In this context, it is interesting to
cox section) – the so-called Lower Tertiary one dozen discoveries having (together) po- note that the 2001 Trident discovery in US
Play, a prospective and regionally extensive tential recoverable reserves of approximate- waters is only about 3 mi (4.8 km) north of
sand fairway present on both sides of the ly 3 Bboe. The Perdido Fold Belt discover- the border.
US-Mexico border. ies in Alaminos Canyon, mere miles north The energy security of the United States and
In Alaminos Canyon protraction area, the of the US-Mexico international maritime Mexico are intertwined. The Mexican govern-
BAHA 1 (1996) and BAHA 2 (2001) wells boundary, dramatically spotlight the signifi- ment depends upon oil export revenues for ap-
first established the presence of elements cant upside potential for additional equally proximately 40% of its fiscal budget. If Mexico
critical to a working deepwater GoM Lower impressive discoveries not only in US wa- cannot reverse its production decline, it soon
Tertiary petroleum system. The Trident ters, but also in Mexican waters just to the will become a net oil importer. That is not in the
well (2001) proved the potential for com- south. In fact, Pemex has identified similar economic and security interest of Mexico, nor
mercially viable quantities of Lower Ter- geology and drill prospects in Mexican wa- in the geopolitical interest of the United States.
tiary hydrocarbons. Great White (2002), To- ters south of the Alaminos Canyon protrac- Not only is Mexico a friendly hemispherical
bago (2004), Tiger (2004), and Gotcha Deep tion area, including prospects Magnánimo neighbor of the US, it is the second largest
(2006) Lower Wilcox discoveries followed. (2,520 m or 8,268 ft water depth), Alaminos supplier to the US after Canada (year-to-date
Exploratory drilling in US waters has ex- (2,888 m or 9,475 ft) Máximino-1 (2,891 m or information through February 2009 from US
tended the deepwater Lower Tertiary Play 9,485 ft), Pep-1 (2,940 m or 9,646 ft of water), Energy Information Administration).
several hundred miles eastward from the Chachiquin (3,216 m, 10,551 ft), and Afótica The next few years will be telling. For 2009,
original Alaminos Canyon discoveries into (3,350 m, 10,991 ft). PEMEX has a record investment budget
the adjacent Keathley Canyon (e.g., Kaski- Unfortunately, the impressive discoveries equal to approximately $19.4 billion (roughly
da, 2006; Buckskin, 2009) and Walker Ridge being racked up on the US side of the bor- double that of recent years). It remains to be
(e.g., Cascade, 2002; St. Malo and Chinook, der contrast severely with the lack of deep- seen how offshore border zone development
2003; Jack, 2004; Stones, 2005; Julia, 2007) water drilling in Mexican waters just south factors into Pemex’s exploration and produc-
protraction areas. of the border, a situation exasperated by the tion plans as discoveries on the US side con-
In US GoM waters, the deepwater Lower longstanding lack of drilling access (i.e., tinue to mount up. 

36 Offshore July 2009 • www.offshore-mag.com

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__________________

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February 2–4, 2010

Houston, Texas USA » George R. Brown Convention Center
www.dotinternational.net

knowledge is

Technologies developed for the offshore exploration and production

industry represent years of accumulated knowledge, then applying thatt
knowledge as the industry continually goes into deeper water.

Knowledge is YOUR EDGE in taking what others

have learned and applying it to your next project
In 2010, Deep Offshore Technology (DOT) returns to Houston, Texas,
February 2 - 4. Make plans now to exhibit your company’s solutions,
innovations, lessons learned, and new technologies with industry
colleagues. You will not want to miss the networking opportunities as wee
bring you this extremely focused, international event.

Practical Experience, not Theories!

If your company wants to reach decision makers in the
For over 29 years, DOT has attracted a select group of conference
deepwater E&P industry, then exhibiting at DOT is essential.
delegates who thirst for knowledge of lessons learned versus the
For information contact:
theoretical, scientific papers of other conferences. Those delegates
want to know what technologies and solutions work today in some of the Exhibitor and Sponsorship Sales:
harshest drilling environments known to the industry. They might be ready
Jane Bailey Sue Neighbors
to put your solutions into practice on their next project tomorrow and not
UK & Northern Europe Americas
wait for the theoretical solutions that may take years to refine.
Phone: +44 (0) 1992 656 651 Phone: +1 713 963 6256
Fax: +44 (0) 1992 656 700 Fax: +1 713 963 6212
[email protected] [email protected]
Flagship Media Sponsors: Owned & Produced by:
®

Ana Monteiro Michael Yee

Southern Europe Asia Pacific
Phone: +44 (0) 1992 656 658 Phone: +65 9616 8080
Supporting Organization: Sponsored By: Fax: +44 (0) 1992 656 700 Fax: +65 6734 0655
[email protected] [email protected]

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Reservoirs that cross country

lines need special agreements Front
Javier H. Estrada Estrada
Analitica Energética S.C.
km (7,720 sq mi). This last one is contiguous
also to the EEZ of Cuba. The Eastern Poly-
gon is off Yucatan, New Orleans, and Cuba.
End
S
In 1980 the US Senate asked the US Geologi-
ince nationalization of the Mexican oil cal Survey (USGS) to evaluate mineral resourc-
industry in 1938, US and Mexican oil es in the GoM. The USGS study included the
Experienced Teams
industry activities in the Gulf of Mex- whole border region and the “gaps” beyond the ready for your
ico (GoM) have remained distant and 200 mi. However, the USGS extended the scope
independent, in spite of the signifi- of the study to the 23 parallel and to the 96 me-
next project.
cant investments made in each country dur- ridian (Mexican coasts of Tamaulipas).
ing the last four decades. Now, however, the According to the USGS, resources in situ at • Field Development
depletion of reserves onshore and in shallow the border and at central regions in the GoM
waters is driving both countries to explore could be from 2.4 Bboe to 22 Bboe, and from • Concept and Feasibility
for new resources in deeper offshore areas a minimum of 5 bcf of natural gas to a maxi- Studies
close to their common borderlines. mum of 44 bcf. In short, the study anticipates
Mexico and the US signed a treaty in 1970 the presence of hydrocarbons in the border • FEED
to establish the maritime boundaries of each region as well as in the neighboring territorial
country to 12 mi (19 km). In December 1970, waters on the other side of the border extend- • Cost Estimates
Resolution 2749 on the Law of the Sea Con- ing to the “Mexican Ridges.”
vention was adopted by the United Nations to
give each country the right to develop natu- Western Polygon
ral resources in its Exclusive Economic Zone and the nearby areas
(EEZ), a 200-mi (322-km) area off its coast. During the 1990s, exploratory activities de-
Should zones overlap, the Law of the Sea veloped in the US part of the GoM: Mickey
requires the countries sign separate marine drilled by Exxon, Gemini by Texaco, and Crazy
boundary treaties. Horse (name changed to Thunder Horse) by
The Mexican and the US governments British Petroleum. In 1995, the US amended
each stated their sovereignty and jurisdic- its federal laws governing the royalty payment
tion over the zone. In 1976, a provisional rec- system on offshore oil and gas production to
ognition agreement of the Marine Frontiers encourage petroleum exploration in the GoM,
between Mexico and the US was signed, and through the Deep Water Royalty Relief Act.
in 1977 both countries agreed to upgrade Drilling technology also evolved to engage in
the provisional agreement to a treaty. That deeper waters. In 1996, the Baha 1 well was
treaty was approved by the Mexican Senate drilled 35 km (22 mi) from the Mexican border
in December 1978 and ratified by the Mexi- at the Perdido foldbelt in the Alaminos Canyon,
can government in 1979. and in 1998, the same consortium drilled the
On Jan. 23, 1979, the President of the US Baha 2. These seem to confirm the hypotheses
sent the treaty to the Senate for ratification. of analogous geologic formations on both sides
While the Senate’s Foreign Relations Com- of the border at Keathley, Alaminos, Walker, People Oriented...
mittee favorably reported the treaty to the and Sigsbee areas. Project Driven®
full Senate, in 1980, the Senate declined to The increased exploration and leasing activ-
ratify it. ity raised questions over the territorial bound-
Apparently the treaty on the EEZ settled ary between the US and Mexico as well as the
only seven points of delimitation, formalizing jurisdiction over the Western Gap. In 1997,
the provisional maritime boundaries between MMS announced that it would offer offshore
the two nations. When mapping the 200 mi leases in the Western Gap contingent upon a
and the extended jurisdictions of both coun- successful agreement between Mexico and
tries beyond those limits, the border lines the US. The government of Mexico indicated
overlapped in two portions of the GoM and that no agreement on the Western Polygon
it became necessary to accommodate each could be considered until the US first ratified
country’s full claim. These two portions were the boundary treaty.
called the “doughnut holes” or “gaps” or “poly- The political reactions in Mexico were im-
gons”, representing more than 200 km (124 portant. It was mentioned that companies op-
mi) of frontier pending for negotiations. erating from the US could extract the Mexican
The western doughnut hole represented resources using directional drilling. The Sen- www.mustangeng.com
a surface of 17,467 sq km (6,744 sq mi) and ate decided to start negotiations on the Mexi-
the eastern doughnut hole around 20,000 sq can rights in the Western Polygon. However,

www.offshore-mag.com • July 2009 Offshore 39

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Reserve Your Booth Today!

MANAGING
THE WAVES
OF CHANGE

November 10 – 12, 2009

Moody Gardens Hotel and Convention Center
Galveston, Texas

CONNECT WITH OPERATORS

“This conference has
WHO MAKE DECISIONS!
filled a real need in
As deepwater production becomes increasingly more complex and expensive,
companies are seeking innovative solutions to better handle operational the industry; a forum
challenges. The Deepwater Operations Conference and Exhibition is the for sharing deepwater
industry’s foremost event for showcasing new technologies and solutions,
featuring a comprehensive conference program held simultaneously with production operations
an exhibition displaying a multitude of products and services. practices and lessons
Book your exhibit space now and take advantage of this unique opportunity learned among operators
to exchange information about key topics affecting start-ups, deepwater
integrity management, emergency response, regulatory issues, cost
and contractors on a
management, and more, while generating top-quality sales leads. global scale.”
The conference and exhibition will be held November 10 – 12, 2009
at the Moody Gardens Hotel and Convention Center in Galveston, Texas. Mike Autin
To book your exhibit space today or to inquire about sponsorship
opportunities, contact your regional sales representative or visit BHP Billiton Petroleum
www.deepwateroperations.com.

FOR EXHIBIT AND SPONSORSHIP INFORMATION, CONTACT:

Sue Neighbors (Americas) Jane Bailey (Northern Europe) Ana Monteiro (Southern Europe)
Phone: +1 713 963 6256 Phone: +44 (0) 1992 656 651 Phone: +44 (0) 1992 656 658
Fax: +1 713 963 6212 Fax: +44 (0) 1992 656 700 Fax: +44 (0) 1992 656 700
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the knowledge about the hydrocarbon and cause, if activities are carried out from the

Project
mineral resources in that region was diffuse. US side of the field, and considering the flow
In August 1998, Pemex hired a Canadian com- dynamics of the reservoirs, the Mexican re-
pany to evaluate the potential resources in the sources could be affected due to the hydrau-
Western Polygon. That study concludes that lic communication of the structures.
the Sigsbee escarpments were only planes and The US sector of the GoM has seen in-
that the overall hydrocarbon resources in the
Western Polygon could be 2,500 Bboe.
The 1978 Mexico-US Mexico Maritime
Limits Treaty was ratified by the US Senate in
creased exploratory activity stimulated by
advanced 3D seismic, new drilling technolo-
gies, and deepwater production systems.
Continued implementation of the deepwater
Execution
1997, enabling negotiations between Mexico royalty relief legislation, signed by President
and the US to resolve ownership of the West- Clinton in November 1995, is beginning to
ern Gap. A territorial and marine delimitation have effect as well. Lease sales held by MMS
Experienced Teams
treaty solely for the Western Polygon became are reaching record totals. With moratoria ready for your
effective Jan.1, 2001. The final sharing of the on new leasing in effect previously for the
Western Polygon was: 62% for Mexico, keep- Eastern GoM as well as the Atlantic and Pa-
next project.
ing the Abyssal plain (3,700 m or 12,139 ft wa- cific coasts, exploration has focused on the
ter depth in some areas), and 38% for the US, Central and Western GoM and on Alaska. • Engineering Design
keeping the Sigsbee escarpments (more than Meanwhile, Pemex also is preparing to
4,000 m or 13,123 ft water depths in some ar- approach these challenges. The Mexican oil • Construction
eas). This is the only treaty where Mexico company concluded eight deepwater wells Management
makes reference to the trans-boundary pe- over the last few years offshore Campeche,
troleum fields based on international law. Veracruz, and Tamaulipas, which indicate • Project Management
Both nations should begin negotiating oil Mexico’s high interest in the hydrocarbon
• Commissioning Support
and gas developments in that area to imple- potentials of the GoM.
ment the rules set forth in the treaty. The
treaty also established a 10-year drilling mor- The Perdido foldbelt
atorium in a 1.4 mi (2.6 km) buffer zone on Recent discoveries at Great White, Baha,
each side of the new boundary. Trident, and Tobago fields establish the Per-
Soon the Canadian company’s estimates dido foldbelt as a significant new petroleum
were questioned by the facts. In August 2001 province in the initial stages of development.
Unocal started drilling Trident in Alaminos The discovery during 2001 at the Trident 1
Canyon 6 km (3.75 mi) from the Mexican wildcat proved the exploration viability of
border and not far from the Western Poly- the Perdido foldbelt in Alaminos Canyon.
gon. Geological interpretations indicate that It is an area characterized by water depths
the Sigsbee escarpments could be the con- reaching more than 10,000 ft (3,048 m), diffi-
tinuation of the large structures from fields cult drilling conditions, and risk of hurricane
already discovered at BP’s Thunder Horse. damage. Geologic insights so far include the
discovery of high-quality light oil, the recog-
Technology is needed nition of multiple hydrocarbon source rocks,
Producing hydrocarbons in the deep waters the age of key seismic markers, and the
of the GoM is complex. Pressures are high presence of abundant and well-developed
and seabed temperatures are low. According sandstone reservoirs.
to MMS, in the US, 285 fields have been dis- Pemex also announced potential signifi-
covered in deep waters (greater than 1,000 ft cant resources in the Mexican part of the Per-
[305 m] since 1975, of which 65 are in more dido foldbelt, and it is preparing for the first People Oriented...
than 5,000 ft (1,524 m) of water. It can take deepwater exploratory well in the area, not Project Driven®
10 to 15 years to start production from these far from the Baha and Trident fields. Pemex
structures, even for giant fields as Thunder plans to use the Muralla III platform to drill
Horse. On the other hand, the prospects for exploratory wells at Magnánimo (2,520 m
new discoveries are high. In February 2009, or 8,268 ft) and Máximino (2,891 m or 9,485
Chevron reported a discovery at the Buckskin ft). However, Pemex considers that the chal-
prospect, 190 mi (306 km) southeast of Hous- lenges to explore for and to produce these
ton and 44 m (71 km) west of Chevron’s 2004 resources will be better managed through
discovery Jack, which is also in the Lower cooperation, using state-of-the-art technolo-
Tertiary. The well is at 6,920 ft (2,109 m) water gies and existing infrastructure.
depth and drilled to 29,404 ft (8,962 m) deep.
Since those prospective works signal that The issue
some reservoirs are in the adjoining border The treaty establishes that neither of the
areas, probably extending beyond the Mexican two countries will execute its sovereign rights
maritime boundaries, Mexico could apply to the or jurisdiction on the seabed or on the subsoil
United Nations Organization to claim title over at the Western Polygon. The treaty states that www.mustangeng.com
the reservoir based on the 1982 Convention. due to the possible existence of oil or natu-
The matter is quite relevant to Mexico be- ral gas fields that could extend through the

www.offshore-mag.com • July 2009 Offshore 41

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TOP WORLD LEADERS

ALL ENERGY SECTORS

BOOK YOUR PREMIER

EXHIBIT SPACE TODAY!
With over 100,000 square feet of exhibition space,
corporations, organizations, and governments can
showcase their national and corporate identities to
more than 3,000 of the world’s energy leaders and
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The Palais des congrès provides an exceptional
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wecmontreal2010exhibit.com positioning the floor traffic and the highest level of
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established limits in the continental shelf, The arrangements in joint development ar-

Life of
during a 10-year period after the treaty took eas range from simple schemes of cooperation
effect, the parts will not authorize nor will al- to highly complex and structured systems of ju-
low the drilling or the exploration of oil and risdiction and revenue sharing. The question of
natural gas in the continental shelf within competing sovereignty or jurisdictional claims
the established stripe of 2.8 mi (4.5 km). The or boundaries usually leads to establishment of
moratorium concludes on Jan. 16, 2011.
Since the treaty signing, MMS has an-
nounced leases for the OCS in multi-sale pro-
cesses covering the Central and Western GOM.
The announcements properly inform the “Ar-
joint development zones. When boundaries ex-
ist, agreements help avoid potential infraction
of rights such as the production of resources
from the opposite side. The agreement also can
help define boundary limits by separating the
Field
eas Excluded from this Call” by explaining that issue of underlying resources, which will be
the Central GoM is bounded on the south to the dealt with through a joint regime. Based on the
Experienced Teams
continental shelf boundary with Mexico while solutions found to similar problems in other re- ready for your
the Western GoM is bounded on the south gions of the world, an agreement on the issue of
to the maritime boundary with Mexico estab- trans-boundary petroleum reservoirs could:
next project.
lished by the same treaty. • Establish common deposits of oil and
Although the treaty does not authorize drill- natural gas, not referring to a particu- • Debottlenecking
ing or production in the Western Gap, both lar geographical area but to a certain
countries should allow each other to conduct deposit, the extent of which would be
• Brownfield Engineering
geological and geophysical studies, to deter- determined by the States Parties through • Operations/Maintenance
mine the possible presence and distribution a mixed Technical Commission, empow-
of trans-boundary reservoirs. Furthermore, ered to calculate the resources in situ
Support
the US and Mexico must share geological and (Austria-Czechoslovakia 1960) • Laser Scanning
geophysical information and notify one anoth- • Define precise geographical areas in con-
er of possible trans-boundary resources. nection with the resources (Norway-UK,
Based on the foregoing, since Sept. 6, 2005, 1976)
the Mexican Senate has announced the follow • Establish a joint development zone, di-
up of these issues, to know the progress on vided by a provisional line separating two
the studies on the trans-boundary fields, the sub-zones, one for each country (Federal
progress in the negotiations between Mexico Republic of Germany-the Netherlands,
and the US on the efficient and equitable ex- 1962) or as many sub-zones as needed
ploitation of the trans-boundary fields in that (Japan-Korea, 1974)
area, and to know about other trans-boundary • Establish a joint development area
fields not included in the treaty. So far, how- (Bahrain-Saudi Arabia, 1958) or a joint
ever, no new agreement has been announced regime (Iran-Sharjah, 1971) or a Common
by Mexico or the US on possible cooperation Zone (Saudi Arabia-Sudan, 1974)
concerning the trans-boundary reservoirs. • Define a delimitation scheme setting up a
protected zone (Australia-Papua New Guin-
Similar international ea, 1978) or a Cooperation Zone, defined by
experience geographical coordinates and divided into
In petroleum provinces where cross-border areas (Australia-Indonesia, 1989).
reservoirs have been discovered, for example
fields across Norway and Britain in the North Unitization
Sea, the governments agreed on a common International experience shows that tech-
framework to develop these resources. There nology exists to produce the oil and gas People Oriented...
are many other examples of joint production from either side of the border, although the Project Driven®
agreements between countries sharing com- optimal way might be carried out from sites
mon hydrocarbon resources: Kuwait and belonging to one country or the other. Be-
Saudi Arabia (1922); Austria and Czechoslova- fore the resources are divided between the
kia (1960); the Federal Republic of Germany countries the governments must agree:
and the Netherlands (1962); Abu Dhabi and • That the petroleum field is a trans-bound-
Qatar (1969); Iran and Sharjah (1971); Japan ary reservoir and should be developed
and Korea (1974); France and Spain (1974); • The reservoir shall be operated as a
Saudi Arabia and Sudan (1974); Australia single unit
and Papua New Guinea (1978); Malaysia and • To individually grant the authorizations
Thailand (1979); Iceland and Norway (1981); required by their respective national laws
Bahrain and Saudi Arabia (1958 and 1983); • In the event that a trans-boundary reservoir
Australia and Indonesia (1989); Malaysia and is to be exploited as a single unit by making
Vietnam (1990); Guinea Bissau and Senegal use of a host facility, the two governments
(1993); Australia and West Timor (2003), as must agree on the procedures used to
well as examples in Latin America in agree- develop that trans-boundary reservoir. www.mustangeng.com
ments involving Brazil-Colombia and Ecuador, Calculating the shares between both coun-
or Venezuela-Trinidad and Tobago. tries usually is done through a procedure

www.offshore-mag.com • July 2009 Offshore 43

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limits the ability of Mexico and the US to create a joint development

scheme in the Western Gap buffer zone or at the Perdido foldbelt.
Thus, the solutions to the trans-boundary reservoirs need to be sepa-
rated from the monopolistic structure of the petroleum industry. This
seems to be the decision taken by Mexico during modifications to the
Petroleum Law adopted on Nov. 28, 2008. There are two articles where
the trans-boundary fields are mentioned:
Article 1 confirms the sovereignty on hydrocarbon resources in the na-
tional territory, including the continental shelf and the EEZ. In this context
the trans-boundary fields are defined as those where the nation has na-

that jurisdiction, shared with other countries, based on treaties signed by

Mexico or based on the UN Convention on the Law of the Sea.
Article 2 states that only the nation (through Pemex) can carry on hydro-
carbon exploitations. The trans-boundary fields can be exploited in terms
of the treaties to which Mexico forms part, signed by the president of the
“Western Gap”. Source: Pemex. Courtesy the Oil & Gas Journal Research Republic and approved by the Chamber of Senators.
Center report “Mexico’s Deepwater Gulf of Mexico: Potential and Pitfalls.” The text on Article 2 of the Petroleum Law opens the door for a treaty
with the US specifically for the trans-boundary fields. This means that
known as “unitization” which requires a thorough knowledge of the in the cases of such cross-border fields, Mexico and the US each could
reservoir, particularly if it is to be exploited as a single source. In the appoint companies to form a joint development effort and, within that
Norway-UK agreement on the Frigg field, each government required agreement, to allow Pemex and a foreign company to supervise the
the acknowledgment of the counterpart to establish a contract with sharing of resources. However, as mentioned, neither of the countries
the licensees of the neighbor country to appoint a common operator. as of yet has indicated the possible characteristics or guidelines in such
The agreement regulates the free movement of persons and materials, a treaty or on the schedules for its negotiations and approval.
safety issues, inspections, taxation, transfer of rights, and other matters, The Framework Agreement between the Government of the United Kingdom
but does not affect the rights and jurisdiction of each country. of Great Britain and Northern Ireland and The Government of the Kingdom of
More complex schemes are possible such as the case between Norway concerning Cross-Boundary Petroleum Co-operation, represent good
Australia and Indonesia. The countries established a cooperation examples for Mexico and the US. This scheme reduces administrative
area divided by sectors within which different rules can apply. In costs but gives the parties enough control to safeguard all sovereignty,
one sector, activities can be carried by a common authority, while requiring the parties to agree on the most effective development plan and
in another section development can be by joint venture companies. the way in which the proceeds are to be apportioned.
This requires numerous rules on supervision, safety, environmental Closer to the US experience and considering prior treaties signed in
protection, and much more. Unitization also may be needed when North America such as those existing between Cuba-Bahamas, US-British
the reservoirs stretch along two or more sectors. Virgin Islands, and US-Canada, maybe the last one could provide elements
An alternative to unitization is the joint-venture, as was the case be- for a joint solution offering quicker access to the reserves, while giving
tween France and Spain. Each country retains its sovereignty and juris- Mexico the necessary resources to develop its own GoM reserves.
diction in a common area where the companies can operate together. The GoM is one of the last remaining prolific petroleum provinces
In general, all the schemes require an institutional setup to ad- in the world. So far the resources have been identified and produced in
minister the system. The setup can be simple or complex depending the shallow waters of Mexico. In the US, exploration and production in
on the trust of each other’s authorities and institutions in matters the GoM has taken place since the 1940s and now is extending south-
related to border lines, permits, norms, and arbitrage, to name a few. wards near to the border with Mexico. At the same time, technology
Otherwise, the schemes must include a full regime of authorities has evolved to produce at 3,000 m (9,842 ft) water depths, though at
and institutions to manage the issues. very high costs.
Mexico, the US, and Cuba share the GoM which may hold trans-
The Mexico-US case boundary reservoirs, including the Western and Eastern gaps. Mexico
At present, neither the US nor Mexico has defined a scheme for a and the US executed a bilateral Treaty in the year 2000, to define the
common agreement in joint petroleum operations. area in which the Western Gap reservoir lies, with a 10-year moratorium
In Mexico there is urgency to settle the dispute as an essentially that soon will conclude. Thus, Mexico and the US must reach sharing
defensive measure. Mexico’s deepwater drilling program will not be and unitization schemes pursuant to international practice. Mexico also
able to match the US efforts near the maritime border. Thus, while faces a major challenge in implementing international practice due to
the US stands to benefit immediately from the delimitation of the its constitutional and legal framework for hydrocarbons. Both countries
Western Gap or from insufficient definition in the Perdido foldbelt, have much to gain by solving this issue fairly, promptly, and function-
Mexico is technologically behind the US petroleum industry and ally. The authorities in both countries are aware of the issue and seem
needs to protect its reserves from private development. ready to draw a treaty both countries can live with. 
Mexican Secretary of Energy Georgina Kessel Martinez and her
US counterpart, Steven Chu, met on April 9, 2009, to underline the About the author
urgency of Mexico-US talks on cross-border fields. In Mexico some Javier Estrada Estrada is president of the consulting company Analitica Energética
propose the government partner with the US to co-develop border S.C. in Mexico City. He has 27 years experience in oil and gas in Mexico, Norway,
fields or risk losing those deposits. and the US.
To allow joint development of national hydrocarbons, Mexico must
develop the legal means to defend this patrimony. Pemex is the only oil The commentary expressed in the preamble reflects the
company allowed as investor and operator under the Mexican system. personal views of the editors, and should not be construed as
The constitution prohibits foreign control of oil and gas production. This representing the official positions of the editors’ employers.

44 Offshore July 2009 • www.offshore-mag.com

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SPE Offshore Europe is where the

E&P community meets to find the
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an accelerating technology race,
and understand the demands of
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𰂮𰃊𰀂𰀂𰀵𰁇𰁐𰁋𰁑𰁔𰀂𰁃𰁖𰁖𰁇𰁐𰁆𰁇𰁇𰁕𰀂𰁈𰁔𰁑𰁏𰀂𰁑𰁘𰁇𰁔𰀂𰀓𰀒𰀒𰀂𰁅𰁑𰁗𰁐𰁖𰁔𰁋𰁇𰁕

𰀱𰁔𰁉𰁃𰁐𰁋𰁕𰁇𰁆𰀂𰁄𰁛

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GEOLOGY & GEOPHYSICS

3D modeling illuminates
Brazil’s presalt geology
Ultra deepwater exploration has just begun

Marcio R. Mello
Nilo C. Azambuja Filho
Eduardo de Mio
André A. Bender
Carlos Luciano. C. de Jesus
Priscila Schmitt
HRT & Petroleum

I
n the past three years, four of the eight
biggest oil discoveries in the world were
in the deepwater Santos basin of south-
ern Brazil, which includes the Tupi,
Iara, Jupiter, and Guara oil fields. This
area encompasses several other successfully
tested prospects such as Bem-te-Vi, Carioca,
and Parati fields. Volumes are surprisingly
large; up to 18 Bbbls of oil. Such discoveries
emphasize that exploration has just begun in
most of the ultra deepwater of the Greater
Campos basin of Brazil’s southern margin. Location of the study area (orange box) in deepwater Santos basin. This area contains the Tupi
A 3D integrated petroleum system model oilfield announced as having up to 8 BBbls of oil reserves.
using a geological and geophysical frame-
work was built on detailed mapping of 20,000 light oil and condensates trapped below the tial (vertical and horizontal distribution),
sq km (7,722 sq mi) of PSDM (prestack salt layer were predicted and helped calibrate thermal evolution of the source rocks, trans-
depth migration) seismic data from CGG- the model. formation ratio, hydrocarbon generation
Veritas. The 3D basin model used informa- Based on those calibrations, a fully inte- and charge, timing of migration, oil origin,
tion about source rocks richness, thickness, grated petroleum system simulation with quality, and volume of petroleum in the main
distribution, kerogen kinetics, reservoir qual- PetroMod 3D (provided by IES) was used to reservoirs. A detailed facies model from the
ity, sealing rocks, and trap geometries. Also, evaluate interplay among the elements and presalt section was built based on well data
the temperature and pressure conditions of processes of the petroleum system to assess and conceptual models from seismic inter-
source rock poten- pretation associated with previous knowl-
Seabed
Tupi
Lower tertiary
Albo-Cenomanian
Top Evaporites

Massive Halite Massive Halite

Massive Halite
Massive Halite
SAG

Upper Rift Basement

Basement
Lower Rift

CGG Veritas / HRT Study

46 km

(Left) The geological and geophysical stratigraphic and structural framework used in the 3D geological model. (Right) Vitrinite data prediction suggests
an oil prone condition for the whole presalt area in deep Santos basin. Present time conditions.

46 Offshore July 2009 • www.offshore-mag.com

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GEOLOGY & GEOPHYSICS

(Left) Transformation ratio values in a cross-section through the Tupi High. Note the low rift section temperatures. (Right) Accumulated hydrocarbons in
the Tupi Area. Announced reserves can reach up to 8 Bbbls of light oil.

edge of the tectono-sedimentary sequences The charge and accumulation simulation

of the Santos basin. model for the presalt province suggests a po-
The predicted vitrinite map, integrated tential reserve in the Cluster area of Santos
with all data, indicates that the Coquinas basin much larger than that reported, getting
SR in most of the eastern half area is in the numbers to 60 Bbbls of oil reserves. The dis-
main oil window, whereas the western half coveries are of light oil (31° to 37° API) with
is in the late oil/wet gas generation window. low sulfur and are lacustrine in origin.
In terms of transformation ratio, the Bar- The supergiant accumulations of light oil,
remian and Aptian source rock systems in condensate, and gas found in the Tupi, Cario-
the area reached 70% to 80% today where the ca, Parati, Guara, Iara, Bem-Te-Vi, and Jupiter
main depocenters are (Mello et al., 2009). study areas are trapped below a huge evapor-
Two physical parameters were critical in itic sequence that can hold significant hydro-
the exceptional thermal conditions for the carbon column heights, a key to establishing
overcharged oil generation and its preserva- one of the most prolific petroleum systems of
tion in the Santos giant oil province: the world: The Great Lagoa Feia Petroleum
1. The heat flow history System (Mello, et al., 1995 and 2009).
2. The high average thermal conductivity All volumetric estimations are based on
of the evaporitic layers. the premise that the same permoporosity
Contrary to theoretical model prediction distributions exist for all the stromatolites,
of high heat flow values in ultra deepwater coquinas, and clastic basal reservoirs. 
(e.g. McKenzie type of models), the heat
flow peak never exceeded 120 mW/m2. Ad-
ditionally, the volcanoclastics stratified in Acknowledgments
The authors thank CCG-VERITAS for the 3D seismic
the presalt sequences so far are neither a Aptian carbonates, microbiolites/stromatolites data for the 3D Petroleum System and Exploration
risk in terms of high temperature intrusive in the Tupi field area (Formigli, 2008). Risk Assessment Multiclient study performed by HRT
nor reservoir or source rock quality (Mello & Petroleum in association with CGGVeritas. The
et al., 2009). lowed pressure release in the presalt layers authors are grateful to geophysicists Alexandre Coelho
Predicted temperature values in the main to reach normal pressure values for most of and Paula Kale Brazão, and the HRT personnel who
source rock deposited in a lacustrine brack- the area. Excess pressure is surprisingly low cooperated in this project. We also thank IES for the
ish to saline alkaline lake environment, such in the presalt rocks. The highest excess pres- PetroMod 3D.
as the Aptian calcareous and the Barremian sure values are less than 0.2 MPa (29 psi) in
black shales, (e.g. Coquinas and Talk Steven- local depocenters and are at hydrostatic state References
FORMIGLI, J. 2008. Santos basin Pre-salt cluster:
site section in the Campos basin [Mello, et al., over most of the area (Mello et al., 2009). how to make production development technical and
1995; Dias 2004; Mello et al., 1995 and 2009]) However, the main exploration and pro- economically feasible. Rio O.il & Gas.
range from 90° to 130° C (194° to 266° F) duction risk lies in the nature and petro- MELLO, M. R., TELNAES, N. J. R. MAXWELL.
in the deepest part of the basin to 70° to 90° physical characteristics of the reservoir 1995. The hydrocarbon source potential in the
Brazilian Marginal Basins: a geochemical and
C (158° to 194° F) in the shallowest areas. rocks – alternating microbiolites, stromato- Paleoenvironmental Assessment, in A. Y. Huc, ed.,
Such values are critical not only to preserve lites, coquinas, and volcaniclastics and sum paleogeography, paleoclimate and source rocks:
the oil-prone nature of the whole area, but of more than 400 m (1,312 ft) in thickness AAPG Studies in Geology, v. 40: Tulsa, AAPG, p.
also to preserve the permoporosity and res- and extend for more than 1,500 km (932 mi) 233-272.
MELLO, M. R., AZAMBUJA FILHO, N.C., BENDER,
ervoirs temperatures (Mello et al., 2009). from southern Santos to northern Espírito A., BRUNO. P.S., DE MIO, E., CATTO, A. J.,
In general, the pressure behavior reflects Santo basins, presenting porosities from 8% SCHMIT, P., JESUS, C.L. 2009. The super-Giant
the structural discontinuity of the halite salt to 20% and permeability from 20 md to 500 Discoveries in the Pre-salt Hydrocarbon Province of
core of the evaporitic sequence, which al- md (Mello et al., 2009). Santos Basin. Submitted to AAPG bulletin.

48 Offshore July 2009 • www.offshore-mag.com

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Unconventional Gas:
New Methods. New Supply.

Change happens fast in this industry and keeping clients aware of new
technology and solutions is essential.
Over the last decade technology advancements improved our capabilities to
September 29 - October 1, 2009
predict, drill and produce natural gas in areas previously thought impossible. Fort Worth Convention Center
These more sophisticated technologies have led to new opportunities in Fort Worth, Texas USA
re-examining existing wells and bringing untapped on line reserves leading www.unconventionalgas.net
Owned & Produced By:
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GEOLOGY & GEOPHYSICS

AAPG, EAGE treated to flurry of new,

improved products, services

T
he geosciences continue to expand into the life-of-field arena
by integrating an array of technologies. With the American
Association of Petroleum Geologists (AAPG) and the Europe-
an Association of Geoscientists & Engineers (EAGE) holding
conferences at the same time in June, several suppliers took
advantage of the timing to introduce new and improved products.
Following are some of those:
At the EAGE conference and exhibition and also AAPG, Paradigm
debuted its Rock & Fluid Canvas 2009 | Epos. The system uses a
higher-order workflow designed to use a variety of applications on
the common platform provided by the Epos infrastructure. It com-
bines geopohysics, geology, petrophysics, and drilling engineering
suites.
“This allows the user to explore the design and to interact with
the subsurface data at any point using all available data…well logs,
seismic, petrophysics, even to geosteering,” says Duane Dopkin,
Paradigm senior vice president, technology. “Users can integrate
data from Earth Decision acquisition to subsurface modeling via
SKUA. And Epos enables scalability for multiple users on the same
project.”
Once the data is collected, Dopkin says the prospect is scalable
up to regional scale and also from a regional scale down to the pros-
pect. It can be used for scenario modeling with repeat workflows to
capture uncertainties in the scenarios.

Desktop 3D seismic
Also at EAGE, ffA released SEA 3D Pro 2009, the next version of
its desktop 3D seismic analysis and volume interpretation software
running on Linux. According to ffA, this new version extends its
range of interactive analysis including a seismic facies classification
module, additions to its frequency decomposition, multi-attribute
color and opacity blending, and iso-proportional slicing.
The new program has an interactive link with GeoProbe 3D soft-
ware from Landmark for volume interpretation.
from 2003-1992 amplitude differences. For cells outside the mask
New 4D inversion algorithm (i.e. with minimal 4D difference) a time-invariant solution was sought
A new global 4D inversion algorithm is available for application to so that the model had the same values at base and monitor survey
time-lapse reservoir characterization using more than two vintage times. Inside the 4D mask, the allowed ranges of Vp, Vs, and ρ varia-
seismic data sets. tions between base and monitor surveys were determined from fluid
This provides a framework to monitor production-induced fluid substitution analysis: water injection is expected to increase Vp and
movements with 4D seismic. The use of smart 4D constraints reduc- ρ by a maximum of 5% and decrease Vs by up to 2%. Pressure effects
es the inherent non-uniqueness of 4D inversion and produces more on the 4D response were expected to be small and therefore were
accurate quantitative results consistent with the expected produc- excluded in the definition of the 4D constraints. The results of the
tion effects, says developer Hampson-Russell Software & Services. 4D global inversion and 4D Bayesian fluid classification are shown
This approach was used for the time-lapse monitoring of reservoir in as maps of oil-sand probability which depict changes in fluid dis-
fluids in the Brage field in the Norwegian North Sea. It has been tribution after 10 years of production. They are broadly consistent
in production since 1993. The study aimed to identify undrained oil with expected effects of the water flooding and also are supported
sands in order to extend the life of the field. by water saturation logged along the path of a horizontal well drilled
The 4D processing of the 1992 base and 2003 monitor surveys in 2005, Hampson-Russell says.
was performed by CGGVeritas. It included anisotropic (TTI) pre-
stack depth migration to accurately position the reservoir’s bound- Analysis development
ing faults and optimum focusing of events in the migrated gathers. In the global 4D inversion, joint perturbations of Vp, Vs, and ρ val-
A “4D mask” was defined using an energy attribute cube, computed ues are introduced for the base and all monitor surveys, and are ac-

50 Offshore July 2009 • www.offshore-mag.com

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GEOLOGY & GEOPHYSICS

Paradigm’s Rock & Fluid Canvas is based on pulling data from where ever they are and adding them to an extendible “canvas.”

cepted or rejected as a whole to find the best described in terms of percentage probability post-stack NMO synthetics with and without
fit for all the vintages. To incorporate 4D of belonging to one or more of the defined multiples can now be calculated. Using well
constraints, the inversion uses a simulated litho-classes. control, this module allows analysis of which
annealing procedure adapted to the multi- Cascading global 4D inversion with 4D seismic events are primaries and which ones
vintage setting. According to Hampson-Rus- Bayesian lithology classification allows res- are not.
sell, this allows user control over the level ervoir properties, in particular fluid satura- The new release also includes enhance-
of 4D coupling which can be expressed in tion, to be derived from the elastic attributes. ments to existing applications including a
terms of simple rock physics rules restrict- It facilitates interpretation by clearly show- new spectral decomposition module, im-
ing the range of variations between consecu- ing the evolution in the fluid distribution provements to the deterministic inversion
tive surveys. over time and quantifying the uncertainty in and wavelet estimation algorithms, and us-
For example, if water injection takes place the inversion results. ability enhancements.
between the base and monitor survey times, Release is scheduled for the third quarter
a large increase in Vp but only a small de- Geoscience Workbench of this year.
crease in Vs due to the density change is Fugro-Jason announced availability of an-
expected. Appropriate limits on the varia- other version of its Jason Geoscience Work- Processing
tion of these parameters can be set. Outside bench with new AVO attribute/analysis and toolkit extension
the reservoir further constraints can be full waveform synthetics applications, and a Just prior to the opening of the conferenc-
applied. In areas where no 4D effect is ex- series of enhancements to existing products. es, GX Technology (GXT) announced an ex-
pected or observed, a model optimization is JGW integrates geological, geophysical, tension to its toolkit for processing seismic
performed across all vintages to reduce the petrophysical, and rock physics information data acquired in difficult subsurface environ-
impact of non-repeatable noise on the inver- into a single consistent model of the earth. ments including subsalt. Two enhancements
sion results. “This latest release, driven by user re- to GXT’s technology toolkit are the ability to
The 4D coupling introduced in the global quests, expands JGW to encompass addi- handle marine seismic data acquired using
inversion identifies solutions consistent with tional seismic interpretation and analysis complex-azimuth (CAZ) geometries, includ-
observed production data and a priori knowl- tools,” says Joe Jacquot, marketing manager ing wide-azimuth and rich-azimuth datasets,
edge of the reservoir. This is vital in reduc- for Fugro-Jason. “With these new tools and and the ability to incorporate anisotropy in
ing the non-uniqueness of 4D inversion and enhancements, our customers will be able to full commercial production across all ele-
it results in more accurate, quantitative es- do a better job of integrating traditional seis- ments of the seismic workflow, including ve-
timates of changes in reservoir properties, mic AVO analysis and JGW seismic inver- locity model building using tomography and
says Hampson-Russell. sion.” The AVO attribute/analysis module reverse time migration (RTM).
The interpretation of elastic attributes will allow extraction of seismic AVA or AVO Nick Bernitsas, senior vice president of
from inversion can be aided by lithology attributes from pre- or partial stack seismic ION’s GXT Imaging Solutions group, says,
or fluid classification. The principle is to data. Options include: “Wide-azimuth surveys are becoming in-
determine the ranges of elastic attributes • Shuey 2-term (intercept and gradient) creasingly commonplace in challenging im-
corresponding to particular lithology and • Shuey 3-term (intercept, gradient, and aging environments like the Gulf of Mexico.
fluid combinations. Hampson-Russell uses far-offset) These datasets take the degree of process-
a Bayesian classification scheme involving • Smith and Gidlow (Vp and Vs contrasts) ing complexity to new levels. With the en-
multivariate probability distribution func- • Fatti et al. (Zp and Zs contrasts) hancements we have made to our imaging
tions. This recognizes that elastic attributes • Gray et al. (λ, μ and ρ contrasts). toolkit, we can now deliver a more accurate
from different lithologies can overlap and This add-on application to the Well Log Edi- representation of the sub-surface to our cli-
the inversion results should, therefore, be tor provides full waveform synthetics. Pre- and ents in a timely and efficient manner.” 

www.offshore-mag.com • July 2009 Offshore 51

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DRILLING & COMPLETION

End of the rig construction boom

Karen Boman Estimated total value of MODU orders 2000-2009 year-to-date
ODS-Petrodata
30

T
$26.2
he global economic recession, decline in 25 $23.9
energy demand, and collapse last year of $22.6
oil and gas prices mean the mobile off-
shore drilling unit (MODU) construc- 20
tion boom likely is coming to an end.
US$ x 1 billion

Three MODU orders have been placed so far

this year compared to the 38 rigs ordered in the
15
first six months of 2008, an indication in the slow-
$12.2
down in activity within the offshore industry.
As of the first of June, 165 MODUs were
10
under construction, planned, or on order world-
wide. This figure includes 69 jackups, 49 semi-
submersibles, 41 drillships, and six tender-assist
5
units. Of these, 44 will be delivered this year into
the softening rig market, including 22 jackups. $1.5 $1.7 $1.2
Jackups continue to comprise a major part of $0.3 $0.2 $0.4
0
the rigs under construction, planned, or on or- 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
der. This should concern jackup owners. ODS-
Petrodata forecasts a significant surplus of jack- Source: ODS-Petrodata RigBase
ups in the market into 2011 at least. Given the
oversupply of jackups and the lack of available
capital, it remains to be seen whether those rigs
Average MODU day rates, selected rig classes 2001-present
that are planned but not yet under construction $600,000
actually make it past the drawing board.
Despite the current global financial climate, GOM jackup
some companies continue to order new rigs on a $500,000 North Sea jackup
speculative basis. Of the 24 MODUs ordered in
the last half of 2008 and first half of 2009 that re- WW mid-water semi
main on the orderbooks, 15 are speculative, that $400,000 WW deepwater floater
is, without contract commitments in hand. Esti-
Day rate US$

mated total cost of the 15 rigs exceeds $5 billion.

The total cost of MODUs now under construc- $300,000
tion, planned, or on order is estimated at $57.8
billion. The total cost for rigs actually under con-
struction is estimated at about $40.9 billion. $200,000
Singapore remains home to the largest num-
ber of rig construction projects with 44, followed
$100,000
by South Korea with 42, and China with 29.
South Korea-based Samsung Heavy Indus-
tries has the most newbuild rigs on its order
$0
book at this time with 26. Singapore-based Jan. July Jan. July Jan. July Jan. July Jan. July Jan. July Jan. July Jan. July Jan.
Keppel FELS has 23 construction projects 01 01 02 02 03 03 04 04 05 05 06 06 07 07 08 08 09
on its roster. Daewoo has 15 rig construc- Source: ODS-Petrodata Consulting & Research
tion projects, while Jurong Shipyard has 14
projects, and Yantai Raffles Shipyard 11. the region’s contracted jackup utilization rate up rates. The average day rate for deepwater
As noted, new rigs will be entering a soft- is at its lowest level since May 1987. The num- floating rigs declined over the last year from
ening rig market where day rates have al- ber of jackups actually working is at its lowest $484,545 to $473,333.
ready declined in some segments. level since the 1970s. One bright spot is the mid-water semi mar-
Day rates have fallen considerably for jack- In the North Sea, jackup day rates also have ket. The average day rate for mid-water semis
ups in the US Gulf of Mexico since May 2008. taken a tumble since May 2008. Last month, rose from $357,429 in May 2008 to $425,000
Last month, the average jackup day rate for the average jackup day rate was $153,750, in May of this year.
the US Gulf was $50,833, down from $73,944 compared to $208,875 in May of last year. Despite continued strength in the floating
in May of last year. Floating rig day rates have not been hit as rig market, all rig owners face some uncertain-
Jackups continue to depart the US Gulf, and hard by the downturn in activity as have jack- ty as operators push for lower costs. 

52 Offshore July 2009 • www.offshore-mag.com

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______________

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DRILLING & COMPLETION

2009 Worldwide MODU construction/upgrade survey as of June 1, 2009. Source: ODS-Petrodata RigBase

Rated Delivery
Owner or manager/ water date Shipyard
Rig name Rig type depth (ft) Status from yard* Shipyard location
Aker Drilling
Aker Spitsbergen Semisubmersible 10000 Acceptance testing Q2 2009 Aker Stord Norway
Aker Barents Semisubmersible 10000 Under construction Q2 2009 Aker Stord Norway
Arabian Drilling
Arabdrill 8 Jackup 150 Yard - Upgrade - Maritime Industrial Services UAE
Atwood
Atwood Osprey Semisubmersible 6000 Under construction 1Q 2011 Jurong Shipyard Pte Ltd Singapore
BassDrill
BassDrill Alpha Tender 400 Under construction Q4 2009 Lamprell UAE
Contractor TBC
JB-116 Jackup 164 Under construction 3Q 2010 Drydocks World - Nanindah Indonesia
COSL
COSL 921 Jackup 200 Under construction 1Q 2010 Offshore Oil Engineering China
COSL 922 Jackup 200 Under construction 1Q 2010 Offshore Oil Engineering China
COSL 923 Jackup 200 Under construction 2Q 2010 Offshore Oil Engineering China
COSL 924 Jackup 200 Under construction 2Q 2010 Offshore Oil Engineering China
COSL 937 Jackup 350 Under construction Q4 2009 Dalian Shipbuilding Industry Co. China
COSL 936 Jackup 350 Under construction Q4 2009 Yiu Lian Dockyards China
Iran Alborz Semisubmersible 3280 Acceptance testing Q3 2009 Sadra Shipyard Iran
HaiYang ShiYou 981 Semisubmersible 7500 Under construction 1Q 2011 Shanghai Waigaoqiao Shipbuilding China
COSLPioneer Semisubmersible 2500 Under construction 2Q 2010 Yantai Raffles China
COSLPromoter Semisubmersible 2500 Under construction 2Q 2011 Yantai Raffles China
COSLInnovator Semisubmersible 2500 Under construction 4Q 2010 Yantai Raffles China
CPOE
CPOE-10 Jackup 250 Under construction Q3 2009 Qingdao Beihai Shipbuilding Heavy Industry China
Delba
Delba III Semisubmersible 7874 Under construction 2Q 2010 Gulf Piping Company UAE
EGAS
EODC JU Tbn2 Jackup 375 Under construction 2Q 2010 PPL Shipyard Pte Ltd Singapore
EODC JU Tbn1 Jackup 375 Under construction Q4 2009 PPL Shipyard Pte Ltd Singapore
Egyptian Drilling
Egyptian Drilling JU Tbn2 Jackup 375 Under construction 2Q 2010 PPL Shipyard Pte Ltd Singapore
Egyptian Drilling JU Tbn1 Jackup 375 Under construction Q4 2009 PPL Shipyard Pte Ltd Singapore
ENSCO
ENSCO 108 Jackup 400 Yard - Upgrade - Keppel FELS Singapore
ENSCO 8500 Semisubmersible 8500 Acceptance testing Q2 2009 Keppel FELS Singapore
ENSCO 8501 Semisubmersible 8500 Acceptance testing Q2 2009 Keppel FELS Singapore
ENSCO 8502 Semisubmersible 8500 Under construction 1Q 2010 Keppel FELS Singapore
ENSCO 8504 Semisubmersible 8500 Under construction 3Q 2011 Keppel FELS Singapore
ENSCO 8503 Semisubmersible 8500 Under construction 4Q 2010 Keppel FELS Singapore
Essar Oilfields Services
Essar JU Tbn1 Jackup 350 Under construction 3Q 2011 ABG Shipyard India
Essar JU Tbn2 Jackup 350 Under construction 4Q 2011 ABG Shipyard India
Foresight Drilling
Foresight Driller VII Jackup 350 Yard - Upgrade - L&T Oman
Frontier Drilling
Bully 1 Drillship 12000 Under construction 1Q 2010 Shanghai Shipyard & Chengxi Shipyard Co., Ltd. Singapore
Bully 2 Drillship 12000 Under construction 3Q 2010 Shanghai Shipyard & Chengxi Shipyard Co., Ltd. Singapore
Gasflot
Arkticheskaya Jackup 328 Under construction 2Q 2010 Zvezdochka Shipyard Russia
Gazflot Semi Tbn1 Semisubmersible 1148 Under construction 1Q 2010 Vyborg Shipyard Russia
Great Offshore
Samed Shikhar Jackup 350 Under construction Q4 2009 Bharati Shipyard India
Greatship
Greatdrill Chitra Jackup 350 Under construction Q4 2009 Keppel FELS Singapore
GSP
Saturn Jackup 295 Yard - Upgrade - Constanta Romania

54 Offshore July 2009 • www.offshore-mag.com

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𰀥𰁙𰁘𰁓𰁑𰁅𰁘𰁍𰁓𰁒

𰀨𰁖𰁍𰁐𰁐𰁍𰁒𰁋𰀄𰁉𰁊𰂴𰁇𰁍𰁉𰁒𰁇𰁝𰀄𰁍𰁗𰀄𰁘𰁌𰁉𰀄𰁒𰁅𰁑𰁉𰀄𰁓𰁊𰀄𰁘𰁌𰁉𰀄𰁋𰁅𰁑𰁉𰀄𰁍𰁒𰀄 𰁍𰁗𰀄𰁘𰁅𰁏𰁍𰁒𰁋𰀄𰁖𰁍𰁋𰀄𰁅𰁙𰁘𰁓𰁑𰁅𰁘𰁍𰁓𰁒𰀄𰁘𰁓𰀄𰁒𰁉𰁛𰀄𰁐𰁉𰁚𰁉𰁐𰁗𰀒
𰁓𰁊𰁊𰁗𰁌𰁓𰁖𰁉𰀄𰁈𰁖𰁍𰁐𰁐𰁍𰁒𰁋𰀒𰀄𰀧𰁙𰁘𰁘𰁍𰁒𰁋𰀄𰁈𰁅𰁝𰁗𰀄𰁓𰁊𰁊𰀄𰁓𰁊𰀄𰁘𰁌𰁉𰀄𰁈𰁖𰁍𰁐𰁐𰀑
𰁍𰁒𰁋𰀄𰁇𰁝𰁇𰁐𰁉𰀄𰁇𰁅𰁒𰀄𰁑𰁉𰁅𰁒𰀄𰁌𰁙𰁋𰁉𰀄𰁗𰁅𰁚𰁍𰁒𰁋𰁗𰀄𰁊𰁓𰁖𰀄𰁓𰁔𰁉𰁖𰁅𰀑 𰀭𰁒𰁊𰁓𰁖𰁑𰁅𰁘𰁍𰁓𰁒𰀐𰀄 𰁍𰁒𰁘𰁉𰁋𰁖𰁅𰁘𰁍𰁓𰁒𰀐𰀄 𰁍𰁒𰁗𰁘𰁖𰁙𰁑𰁉𰁒𰁘𰁅𰁘𰁍𰁓𰁒𰀒𰀄𰀄
𰁘𰁓𰁖𰁗𰀐𰀄𰁉𰁗𰁔𰁉𰁇𰁍𰁅𰁐𰁐𰁝𰀄𰁍𰁑𰁔𰁓𰁖𰁘𰁅𰁒𰁘𰀄𰁍𰁒𰀄𰁘𰁓𰁈𰁅𰁝𰂫𰁗𰀄𰁑𰁅𰁖𰁏𰁉𰁘𰀒 𰀭𰁘𰂫𰁗𰀄 𰁅𰁐𰁐𰀄 𰁇𰁓𰁑𰁍𰁒𰁋𰀄 𰁘𰁓𰁋𰁉𰁘𰁌𰁉𰁖𰀄 𰁘𰁓𰀄 𰁑𰁅𰁏𰁉𰀄 𰀴𰁖𰁍𰁈𰁉𰀄 𰁘𰁌𰁉𰀄
𰁇𰁓𰁒𰁘𰁖𰁅𰁇𰁘𰁓𰁖𰀄𰁓𰁊𰀄𰁇𰁌𰁓𰁍𰁇𰁉𰀄𰁛𰁌𰁉𰁒𰀄𰁈𰁖𰁍𰁐𰁐𰁍𰁒𰁋𰀄𰁉𰁊𰂴𰁇𰁍𰁉𰁒𰁇𰁝𰀄
𰀸𰁌𰁅𰁘𰂫𰁗𰀄 𰁛𰁌𰁉𰁖𰁉𰀄 𰀴𰁖𰁍𰁈𰁉𰀄 𰁗𰁘𰁅𰁘𰁉𰀑𰁓𰁊𰀑𰁘𰁌𰁉𰀑𰁅𰁖𰁘𰀄 𰁖𰁍𰁋𰁗𰀄 𰁇𰁅𰁒𰀄 𰁍𰁗𰀄𰁘𰁌𰁉𰀄𰁒𰁅𰁑𰁉𰀄𰁓𰁊𰀄𰁘𰁌𰁉𰀄𰁋𰁅𰁑𰁉𰀒
𰁑𰁅𰁏𰁉𰀄𰁅𰀄𰁈𰁍𰁊𰁊𰁉𰁖𰁉𰁒𰁇𰁉𰀒𰀄𰀄𰀪𰁖𰁓𰁑𰀄𰁓𰁙𰁖𰀄𰁗𰁓𰁔𰁌𰁍𰁗𰁘𰁍𰁇𰁅𰁘𰁉𰁈𰀄
𰁈𰁖𰁍𰁐𰁐𰁉𰁖𰂫𰁗𰀄𰁇𰁓𰁒𰁗𰁓𰁐𰁉𰁗𰀄𰁘𰁓𰀄𰁓𰁙𰁖𰀄𰁔𰁅𰁖𰁅𰁐𰁐𰁉𰁐𰀄𰁅𰁇𰁘𰁍𰁚𰁍𰁘𰁝𰀄𰁔𰁖𰁓𰀑 𰀴𰁖𰁍𰁈𰁉𰀞𰀄𰀄𰀭𰁘𰂫𰁗𰀄𰁅𰁐𰁐𰀄𰁇𰁓𰁑𰁍𰁒𰁋𰀄𰁘𰁓𰁋𰁉𰁘𰁌𰁉𰁖𰀒
𰁇𰁉𰁗𰁗𰁉𰁗𰀄𰁘𰁓𰀄𰁓𰁙𰁖𰀄𰁈𰁅𰁘𰁅𰀄𰁋𰁅𰁘𰁌𰁉𰁖𰁍𰁒𰁋𰀄𰁗𰁝𰁗𰁘𰁉𰁑𰁗𰀐𰀄𰀴𰁖𰁍𰁈𰁉𰀄 www.prideinternational.com

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2009 Worldwide MODU construction/upgrade survey

Rated Delivery
Owner or manager/ water date Shipyard
Rig name Rig type depth (ft) Status from yard* Shipyard location
Hercules Offshore
Mosvold 106 Jackup 300 Under construction 1Q 2010 Maritime Industrial Services UAE
Mosvold 108 Jackup 300 Under construction 2Q 2010 Maritime Industrial Services UAE
Hercules 185 Jackup 150 Yard - Upgrade - Walvis Bay Namibia
IPC
La Muralla III Semisubmersible 10000 Under construction 1Q 2010 Daewoo South Korea
Island Offshore
Island Innovator Semisubmersible 2460 Under construction 4Q 2010 COSCO Zhoushan China
Kencana Petroleum
KM-2 Tender 6000 Under construction 2Q 2010 Kencana H.L. Engineering Malaysia
KS Energy
KS Endeavor Jackup 300 Under construction Q3 2009 Maritime Industrial Services UAE
Larsen Oil & Gas
PetroRig III Semisubmersible 10000 Under construction 1Q 2010 Jurong Shipyard Pte Ltd Singapore
Larsen Rig I Semisubmersible 10000 Under construction 2Q 2011 Jurong Shipyard Pte Ltd Singapore
PetroRig II Semisubmersible 7500 Under construction Q3 2009 Jurong Shipyard Pte Ltd Singapore
Lonestar Drilling
Lonestar 203 Drill barge 125 Yard - Upgrade - Superior Shipyard USA
Lonestar 204 Drill barge 125 Yard - Upgrade - Superior Shipyard USA
Maersk Drilling
Maersk High Efficiency No.4 Jackup 350 Under construction Q3 2009 Keppel FELS Singapore
Maersk Gallant Jackup 394 Yard - Upgrade - Esbjerg Denmark
Maersk Semi Tbn3 Semisubmersible 10000 Under construction 4Q 2010 Keppel FELS Singapore
Maersk Semi Tbn2 Semisubmersible 10000 Under construction Q4 2009 Keppel FELS Singapore
MENAdrill
MENAdrill JU Tbn1 Jackup 300 Under construction 3Q 2010 Maritime Industrial Services UAE
MENAdrill JU Tbn2 Jackup 300 Under construction 4Q 2010 Maritime Industrial Services UAE
Mermaid Drilling
KM-1 Tender 6000 Under construction Q3 2009 Kencana H.L. Engineering Malaysia
Neptune Marine Drilling
Neptune Explorer Drillship 5000 Yard - Upgrade - Sembawang Singapore
Noble
Noble Scott Marks Jackup 400 Under construction Q3 2009 Dalian Shipbuilding Industry Co. China
Noble Roy Rhodes Jackup 250 Yard - Upgrade - Lamprell UAE
Noble Jim Day Semisubmersible 12000 Under construction 2Q 2010 Jurong Shipyard Pte Ltd Singapore
Noble Danny Adkins Semisubmersible 12000 Under construction Q4 2009 Jurong Shipyard Pte Ltd Singapore
Noble Dave Beard Semisubmersible 10000 Yard - Upgrade - BRASFELS Brazil
Ocean Rig
Cardiff Marine Drsh Tbn2 Drillship 10000 Under construction 1Q 2011 Samsung Heavy Industries South Korea
Cardiff Marine Drsh Tbn1 Drillship 10000 Under construction 4Q 2010 Samsung Heavy Industries South Korea
Odebrecht
Norbe VI Semisubmersible 7874 Under construction Q4 2009 Gulf Piping Company UAE
Odfjell Drilling
Deepsea Metro 1 Drillship 10000 Under construction 2Q 2011 Hyundai Heavy Industries South Korea
Deepsea Metro 2 Drillship 10000 Under construction 4Q 2011 Hyundai Heavy Industries South Korea
Deepsea Stavanger Semisubmersible 10000 Under construction 2Q 2010 Daewoo South Korea
Pacific Drilling Services
Pacific Bora Drillship 10000 Under construction 3Q 2010 Samsung Heavy Industries South Korea
Perforadora Central
Tuxpan Jackup 350 Under construction Q4 2009 Keppel AmFELS USA
Petrobras
Petrobras III Jackup 250 Yard - Upgrade - Brazil Brazil
Petroserv
SSV Victoria Semisubmersible 7874 Under construction Q3 2009 Daewoo South Korea
Pride
Pride Drsh Tbn1 Drillship 10000 Under construction 1Q 2010 Samsung Heavy Industries South Korea
Pride Drsh Tbn3 Drillship 10000 Under construction 1Q 2011 Samsung Heavy Industries South Korea

56 Offshore July 2009 • www.offshore-mag.com

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KONG

𰀁𰀁𰀁𰀁𰀁𰀁𰀁𰀁𰀁𰀁𰀁𰀁𰀁𰀁“𰀸𰁆𰀁𰁉𰁂𰁗𰁆𰀁𰁇𰁐𰁖𰁓𰀁𰀁𰀁𰀁
𰀁 𰀁 𰁓𰁆𰁄𰁐𰁓𰁅𰁆𰁅𰀁𰁊𰁏𰁄𰁊𰁅𰁆𰁏𰁕𰁔𰀁𰀁
𰀁 𰁘𰁉𰁆𰁓𰁆𰀁𰁕𰁉𰁆𰀁𰁈𰁍𰁐𰁗𰁆𰁔𰀁
𰀁𰀁𰁉𰁂𰁗𰁆𰀁𰁉𰁆𰁍𰁑𰁆𰁅𰀁𰁑𰁓𰁆𰁗𰁆𰁏𰁕𰀁𰁂𰁏𰀁
𰁊𰁏𰁋𰁖𰁓𰁚𰀏𰀁𰀰𰁗𰁆𰁓𰀁𰁂𰁍𰁍𰀍𰀁𰁕𰁉𰁆𰀁𰁈𰁍𰁐𰁗𰁆𰁔𰀁
𰁂𰁓𰁆𰀁𰁉𰁐𰁍𰁅𰁊𰁏𰁈𰀁𰁖𰁑𰀁𰁘𰁆𰁍𰁍𰀏𰀁𰀵𰁉𰁆𰀁𰀁𰀁𰀁𰀁
𰀁 𰀁 𰀬𰀰𰀯𰀨𰀁𰁈𰁍𰁐𰁗𰁆𰁔𰀁𰁄𰁂𰁏𰀁𰀁
𰀁𰀁𰀁𰀁𰀁𰀁𰁃𰁆𰀁𰁑𰁍𰁂𰁄𰁆𰁅𰀁𰁊𰁏𰀁𰁂𰀁𰁅𰁓𰁚𰁆𰁓𰀁

𰀥𰁆𰁔𰁊𰁈𰁏𰁆𰁅𰀁𰁃𰁚𰀁𰀰𰁊𰁍𰀁𰀇𰀁𰀨𰁂𰁔𰀁𰀪𰁏𰁅𰁖𰁔𰁕𰁓𰁚𰀁𰀦𰀹𰀱𰀦𰀳𰀵𰀴𰀁𰁕𰁐
𰀁𰀁𰀁𰀁𰀁𰀁𰁂𰁔𰀁𰁍𰁐𰁏𰁈𰀁𰁂𰁔𰀁𰁕𰁉𰁆𰁓𰁆𰀁𰀁
𰀁 𰀁 𰁊𰁔𰀁𰁏𰁐𰀁𰁉𰁆𰁂𰁕𰀏𰀁
𰀁 𰀁 𰀁 𰀢𰁊𰁓𰀁𰁅𰁓𰁚𰀁𰁐𰁏𰁍𰁚𰀏”

𰁓𰁆𰁅𰁖𰁄𰁆𰀁𰀐𰀁𰁊𰁇𰀁𰁏𰁐𰁕𰀁𰁆𰁍𰁊𰁎𰁊𰁏𰁂𰁕𰁆𰀁𰁕𰁉𰁆𰀁 𰀁𰀁𰀁𰀁𰀁𰀁“𰀸𰁉𰁊𰁍𰁆𰀁𰁖𰁏𰁃𰁖𰁏𰁅𰁍𰁊𰁏𰁈𰀁
𰁑𰁊𰁑𰁆𰀁𰁐𰁏𰀁𰁂𰀁𰁑𰁊𰁑𰁆𰀁𰁓𰁂𰁄𰁌𰀍
𰀁𰁎𰁚𰀁𰁭𰁏𰁈𰁆𰁓𰀁𰁃𰁆𰁄𰁂𰁎𰁆𰀁𰀁 𰀁
𰀵𰀩𰀳𰀦𰀦𰀁𰁃𰁊𰁈𰁈𰁆𰁔𰁕𰀁𰀁𰁉𰁂𰁏𰁅𰀁𰁊𰁏𰁋𰁖𰁓𰁊𰁆𰁔𰀂 𰀁 𰁄𰁂𰁖𰁈𰁉𰁕𰀁𰁃𰁆𰁕𰁘𰁆𰁆𰁏𰀁𰁕𰁘𰁐𰀁
𰁋𰁐𰁊𰁏𰁕𰁔𰀏𰀁𰀥𰁊𰁅𰀁𰁏𰁐𰁕𰀁𰁄𰁂𰁖𰁔𰁆𰀁
for 20 𰁊𰁏𰁋𰁖𰁓𰁚𰀏𰀁𰀤𰁐𰁖𰁍𰁅𰀁𰁉𰁂𰁗𰁆𰀁𰀁 𰀁

𰀩𰁂𰁊𰁓𰁍𰁊𰁏𰁆𰀁𰀧𰁓𰁂𰁄𰁕𰁖𰁓𰁆𰁔 ewImproved
𰀁 𰁔𰁎𰁂𰁔𰁉𰁆𰁅𰀁𰁂𰀁𰁭𰁏𰁈𰁆𰁓𰀁𰁊𰁇𰀁
𰁘𰁆𰁂𰁓𰁊𰁏𰁈𰀁𰁄𰁐𰁕𰁕𰁐𰁏𰀁𰁈𰁍𰁐𰁗𰁆𰁔𰀏”
0
N

Palm Grip
𰀣𰁓𰁖𰁊𰁔𰁊𰁏𰁈𰀁𰀣𰁍𰁐𰁘𰁔
9

𰀁 “𰀰𰁖𰁓𰀁𰀭𰁂𰁇𰁂𰁚𰁆𰁕𰁕𰁆𰀁
PVC dots increased 𰀥𰁊𰁔𰁕𰁓𰁊𰁄𰁕𰀁𰁉𰁂𰁔𰀁𰁂𰀁𰁁𰀬𰀰𰀯𰀨𰀁𰀁
from 2mm to 5mm 𰀁 𰀵𰁓𰁂𰁄𰁌𰁊𰁏𰁈𰀈𰀁𰁑𰁓𰁐𰁈𰁓𰁂𰁎𰀏𰀁

𰀱𰁊𰁏𰁄𰁉𰁆𰁅𰀁𰀧𰁊𰁏𰁈𰁆𰁓𰁔 and the PVC compound

is softer = better
and longer
𰀵𰁉𰁓𰁆𰁆𰀁𰁊𰁏𰁄𰁊𰁅𰁆𰁏𰁕𰁔𰀁𰁘𰁆𰁓𰁆𰀁𰀁
𰀁 𰁕𰁓𰁂𰁄𰁌𰁆𰁅𰀍𰀁𰁂𰁏𰁅𰀁𰁕𰁉𰁆𰀁
𰀁 𰀁 𰁊𰁏𰁋𰁖𰁓𰁚𰀁𰁓𰁆𰁅𰁖𰁄𰁕𰁊𰁐𰁏𰀁
lasting grip 𰁇𰁓𰁐𰁎𰀁𰁕𰁉𰁆𰁔𰁆𰀁𰁊𰁏𰁄𰁊𰁅𰁆𰁏𰁕𰁔
1-800-669-1677 • www.orrsafety.com/kong 𰀁𰀁 𰀁 𰁉𰁂𰁔𰀁𰁎𰁐𰁓𰁆𰀁𰁕𰁉𰁂𰁏𰀁
𰀁 𰀁 𰀁 𰁑𰁂𰁊𰁅𰀁𰁇𰁐𰁓𰀁𰁕𰁉𰁆𰀁
𰁆𰁏𰁕𰁊𰁓𰁆𰀁𰀬𰀰𰀯𰀨𰀁𰁑𰁓𰁐𰁈𰁓𰁂𰁎𰀏”

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2009 Worldwide MODU construction/upgrade survey

Rated Delivery
Owner or manager/ water date Shipyard
Rig name Rig type depth (ft) Status from yard* Shipyard location
Pride Drsh Tbn2 Drillship 10000 Under construction 2Q 2010 Samsung Heavy Industries South Korea
Pride Drsh Tbn4 Drillship 10000 Under construction 4Q 2011 Samsung Heavy Industries South Korea
PV Drilling
PV Drilling II Jackup 375 Under construction Q4 2009 Keppel FELS Singapore
PV Drilling III Jackup 360 Under construction Q4 2009 Keppel FELS Singapore
Queroz Galvao
Alpha Star Semisubmersible 9000 Under construction 4Q 2011 Keppel FELS Singapore
Lone Star Semisubmersible 7874 Under construction Q2 2009 Gulf Piping Company UAE
Gold Star Semisubmersible 6500 Under construction Q4 2009 Keppel FELS Singapore
Olinda Star Semisubmersible 3600 Yard - Upgrade - Estaleiro Maua Brazil
Riginvest
Riginvest JU Tbn1 Jackup 350 Under construction 4Q 2010 Lamprell UAE
Rowan
Rowan Fort Worth II Jackup 350 Under construction 2Q 2010 Keppel AmFELS USA
Rowan JU Tbn4 Jackup 350 Under construction 3Q 2010 Keppel AmFELS USA
Rowan JU Tbn5 Jackup 350 Under construction 4Q 2010 Keppel AmFELS USA
Ralph Coffman Jackup 400 Under construction Q4 2009 LeTourneau USA
Royal Oyster Group
Shahid Modarres Jackup 210 Yard - Upgrade - Sharjah UAE
Saipem
Saipem 12000 Drillship 12000 Under construction 1Q 2010 Samsung Heavy Industries South Korea
Perro Negro 6 Jackup 350 Under construction Q2 2009 Drydocks World – Graha Indonesia
Standard JU Tbn4 Jackup 350 Under construction Q4 2009 Drydocks World – Graha Indonesia
Scarabeo 8 Semisubmersible 9843 Under construction 1Q 2010 Fincantieri Italy
Scarabeo 9 Semisubmersible 10000 Under construction 1Q 2010 Yantai Raffles China
Schahin
Petrobras Drsh Tbn2 Drillship 10000 Under construction 2Q 2010 Samsung Heavy Industries South Korea
Amazonia Semisubmersible 7875 Under construction 1Q 2010 Yantai Raffles China
Pantanal Semisubmersible 6560 Under construction 2Q 2010 Yantai Raffles China
Scorpion Offshore
Offshore Freedom Jackup 350 Acceptance testing Q2 2009 Lamprell UAE
Offshore Mischief Jackup 350 Under construction 1Q 2010 Lamprell UAE
Seadrill
West Gemini Drillship 10000 Under construction 3Q 2010 Samsung Heavy Industries South Korea
West Leda Jackup 375 Under construction 1Q 2010 PPL Shipyard Pte Ltd Singapore
West Elara Jackup 375 Under construction 1Q 2011 PPL Shipyard Pte Ltd Singapore
West Callisto Jackup 400 Under construction 2Q 2010 Keppel FELS Singapore
West Juno Jackup 400 Under construction 4Q 2010 Keppel FELS Singapore
West Orion Semisubmersible 10000 Under construction 2Q 2010 Jurong Shipyard Pte Ltd Singapore
Seadrill Tender Tbn5 Tender 5000 Under construction 1Q 2011 Keppel Shipyard Singapore
West Vencedor Tender 5000 Under construction Q4 2009 Keppel FELS Singapore
T-12 Tender 400 Under construction Q4 2009 Malaysia Marine & Heavy Engineering Malaysia
SeaWolf
SeaWolf Onome Jackup 300 Acceptance testing Q2 2009 Maritime Industrial Services UAE
Servicios Integrales GSM
Servicios Integrales JU Tbn1 Jackup 400 Under construction 2Q 2011 Operadora Cicsa Mexico
Sevan Drilling
Sevan Driller I Semisubmersible 7874 Under construction Q3 2009 COSCO Nantong China
Sino Tharwa Drilling
Bahari-1 Jackup 400 Under construction 4Q 2010 Dalian Shipbuilding Industry Co. China
Sinopec
Sinopec JU Tbn1 Jackup 375 Under construction 1Q 2011 PPL Shipyard Pte Ltd Singapore
Kan Tan III Semisubmersible 660 Yard - Upgrade - Union Shipyard China
Skeie Drilling & Production
SKDP 3 Jackup 430 Under construction 2Q 2011 Keppel FELS Singapore
SKDP 1 Jackup 400 Under construction 3Q 2010 Keppel FELS Singapore
SKDP 2 Jackup 430 Under construction 4Q 2010 Keppel FELS Singapore

58 Offshore July 2009 • www.offshore-mag.com

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2009 Worldwide MODU construction/upgrade survey

Rated Delivery
Owner or manager/ water date Shipyard
Rig name Rig type depth (ft) Status from yard* Shipyard location
Stena
Stena Forth Drillship 7500 Under construction Q3 2009 Samsung Heavy Industries South Korea
Transocean
Discoverer Luanda Drillship 7500 Under construction 3Q 2010 Daewoo South Korea
Deepwater Champion Drillship 10000 Under construction 3Q 2010 Hyundai Heavy Industries South Korea
Discoverer India Drillship 10000 Under construction 4Q 2010 Daewoo South Korea
Discoverer Americas Drillship 10000 Under construction Q2 2009 Daewoo South Korea
Petrobras 10000 Drillship 10000 Under construction Q3 2009 Samsung Heavy Industries South Korea
Dhirubhai Deepwater KG2 Drillship 10000 Under construction Q4 2009 Samsung Heavy Industries South Korea
Discoverer Inspiration Drillship 12000 Under construction Q4 2009 Daewoo South Korea
Development Driller III Semisubmersible 7500 Acceptance testing Q2 2009 Keppel FELS Singapore
UMW Standard Drilling
Naga-2 Jackup 350 Under construction Q2 2009 Drydocks World – Graha Indonesia
Naga-3 Jackup 350 Under construction Q4 2009 Drydocks World – Graha Indonesia
Vantage Drilling
Platinum Explorer Drillship 10000 Under construction 4Q 2010 Daewoo South Korea
Sapphire Driller Jackup 375 Under construction Q2 2009 PPL Shipyard Pte Ltd Singapore
Aquamarine Driller Jackup 375 Under construction Q3 2009 PPL Shipyard Pte Ltd Singapore
Topaz Driller Jackup 375 Under construction Q4 2009 PPL Shipyard Pte Ltd Singapore
SDO II Semisubmersible 10000 Under construction 4Q 2010 Jurong Shipyard Pte Ltd Singapore
Yantai Raffles Drilling
Yantai Raffles JU Tbn1 Jackup 300 Under construction 1Q 2010 Yantai Raffles China
Yantai Raffles JU Tbn2 Jackup 300 Under construction 2Q 2010 Yantai Raffles China
Yantai Raffles JU Tbn3 Jackup 300 Under construction 3Q 2010 Yantai Raffles China
* New units

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Houston & Gulf Coast, Offshore E&P worldwide

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BUILDING FOR THE FUTURE

AUSTRALIA | SINGAPORE | VIETNAM | MEXICO

5 Clarence Beach Rd, Henderson, WA, 6166, Australia
Phone: +61 8 9437 4840 | Fax: +61 8 9437 4838
[email protected] www.strategicmarine.com

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Jackup count increases

along with uncertainty
Jaime Kammerzell
Special Correspondent

T
he global jackup rig fleet has grown significantly from Janu-
ary 2004 to May 2009. The rig count increased from 387 to
440 and is expected to add about 60 more before the year
ends. However, 2009 expects to be a challenging year. Some
jackups will be without contracts for all or part of the year and
others planned for construction will not be built.
Offshore magazine has conducted a survey of the worldwide jack-
up rig fleet. The survey, inserted in this issue, is limited to rigs with
capacity for greater than or equal to 350 ft (107 m) water depth and
greater than or equal to 25,000 ft (7,620 m) maximum drilling depth.
Thus, not all 440 rigs qualify for the survey.
Transocean leads the 2009 survey with 17 rigs, 14 of them ac-
quired from GlobalSantaFe when the two companies merged in No-
vember 2007. Transocean has five rigs working in the North Sea,
four off Egypt, three off West Africa, two each off Southeast Asia and
Trinidad, and one in the Caspian Sea.
Ensco is well represented in the survey as well, with a total of 14
jackups. However, the company is short a rig. Ensco 74 was lost in
2008 when Hurricane Ike ripped through the Gulf of Mexico. The
rig was a MLT Super 116-C in approximately 230 ft (70 m) of water
92 mi (148 km) from shore in South Marsh Island block 149. Other
jackups lost in the hurricane include the Pride Wyoming and the Row-
an Anchorage, both rated for 250 ft (76 m) of water.
Maersk Drilling has 12 jackups on the survey, including four new
rigs. Keppel FELS delivered the third of four high-efficiency jackups
to Maersk Drilling in January 2009. The rig is named Maersk Resolve. Maersk Drilling’s 375-ft (114-m) rated jackup Maersk Convincer, built in
The first rig, Maersk Resilient, was delivered in February 2008 and 2008, is working for Shell offshore Brunei. The rig’s contract with Shell
works for Dubai Petroleum Establishment. The second rig, Maersk Reso- ends in December of this year. Photo courtesy of Maersk Drilling.
lute, was delivered in August 2008 and works for Dong Energy in the Dan-
ish North Sea for three years. Meanwhile, the fourth and last jackup rig completion in 2011, is suspended.
of this fleet was on track for delivery in the second quarter of this year. Scorpion Offshore has several newbuilds on the survey. In January,
Rowan Cos. Inc. recently agreed with PEMEX for the Rowan Go- Keppel AmFELS Inc. delivered the Offshore Intrepid, the last of five
rilla IV to start work in the second quarter. LeTourneau Super 116 jackup rigs Scorpion commissioned in 2005.
In addition, Rowan was expected to add three new jackups to its The Offshore Intrepid started work for Odfjell Drilling Services in
fleet, but announced in January that it suspended construction of the Arabian Gulf in the second quarter of this year. The contract is
two jackups and canceled construction of another. Rowan took these for 41 months.
dramatic steps to reduce the company’s expenditures through new- The first two units, Offshore Courageous and Offshore Defender, were
build plan revisions. delivered in 2007. The third and fourth, Offshore Resolute and Offshore
Rowan suspended construction of the Joe Douglas, a 240C class Vigilant, were delivered in 2008.
jackup, and canceled the construction of another 240C class jackup The four identical rigs incorporate a 70 ft (21 m) cantilever, the
scheduled for completion in 2011. The company’s LeTourneau Tech- maximum reach currently available for all but a few harsh environ-
nologies Inc. (LTI) facility in Vicksburg, Mississippi, completed the ment units. The rigs are capable of working in 350 ft of water as out-
construction of one similar 240C class jackup rated for 400 ft (122 m) fitted or in up to 400 ft of water with added leg sections. Its drilling
of water in 2008. The Rowan Mississippi is expected to be followed by depth is approximately 30,000 ft (9,144 m).
the Ralph Coffman at the end of this year. Scorpion also has two LeTourneau Super 116E ultra premium
Keppel AmFels Inc. in Brownsville, Texas, is constructing three class jackups under construction with Lamprell Energy Ltd. The
more jackups for Rowan. The Super 116E class jackups known as Row- Offshore Freedom and Offshore Mischief are under construction at Lam-
an EXLs are rated for 350 ft of water. Rowan expects to take delivery of prell’s yard in Sharjah, United Arab Emirates. The rigs are sched-
these rigs in 2010. However, fabrication of a fourth rig, scheduled for uled for delivery this year.

60 Offshore July 2009 • www.offshore-mag.com

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635($'
0225,1*
6<67(06

81'(5:$7(5)$,5/($'6

7851'2:16+($9(6
Virtue Drilling’s 350-ft (107-m, upgradable to 400 ft [122 m]) jackup Virtue I is under contract with ONGC &+$,167233(56
through January 2014. The rig was delivered in December 2008. Photo courtesy of Virtue Drilling.

Scorpion holds options to construct up to newbuild jackups in 2011. '(6,*16)25$// /2$'021,725,1*

three more LeTourneau Super 116E rigs at The four jackup newbuilds will grow Sead- &+$,1 :,5( 6<67(06
Lamprell. rill’s jackup fleet from eight to 12 units. 6,=(6 $9$,/$%/(
Seadrill announced in June 2008 that it en- Petrobras also has newbuild jackups on or-
tered into agreements with KFELS and PPL der. The Brazilian energy giant has ordered
Shipyard in Singapore to construct four jack- its first two new jackups in 25 years. The LTI $%6'19/5%9 35(7(16,21,1*
ups for delivery in 2010. Super S116E design jackups will be named $33529$/6 6<67(06
The two units to be built at KFELS are Petrobras 59 and Petrobras 60. They will be built
based on the KFELS Mod V B design and are at Sao Roque do Paraguaçu, Bahia, Brazil, by
rated for up to 400 ft of water and 30,000 ft drill- Consorcio Rio Paraguaçu. This consortium is
ing depth. Deliveries are expected in June and composed by three major Brazilian contractors, &200,66,21,1* &86720'(6,*16
November 2010. Odebrecht, Queiroz Galvao, and UTC. The rigs 67$5783 )25$//
The two units to be built at PPL Shipyard are intended for operation offshore Brazil. 6(59,&(6 &21',7,216
will be based on the Baker Marine Pacific The self-elevating rigs will be capable of
Class 375 Deep Drilling design. They are rat- drilling under high pressure/high tempera-
ed for up to 375 ft (114 m) of water and 30,000 ture in water depth to 350 ft with drilling
ft (9,144 m) of drilling depth. Deliveries are depth of up to 30,000 ft. :::60,7+%(5*(5&20
_________________________
scheduled for March and November 2010. The jackups are scheduled for delivery in
Additionally, Seadrill has options for more 2011. 

www.offshore-mag.com • July 2009 Offshore 61

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Advances in rig design

Aker H-6e built for harsh environments, ultra deepwater

T
he Aker H-6e design is for the largest Nora Haug
and most advanced drilling semisub- Knut B. Engebretsen Aker H-6e hull particulars
mersible ever built. The rig was de- Pål Lindstad
Magne Nygård Pontoon Length 120 m
signed for high operability in deepwa-
Aker Solutions Breadth Pontoons 77 m
ter and harsh environments such as
Pontoon Width 19,5 m
North Atlantic, Barents Sea, GoM, and Asia/
Pontoon Height 10 m
Pacific, with sufficient flexibility for opera-
Main Deck Length 90 m
tions in West Africa and other milder areas. which speeds the running time because of
Main Deck Width 70 m
The Aker H-6e semi can drill and complete the unique bolt-less connector type which is
Columns 12,5 x 12,5 m
wells in water depths ranging from 70-3,000 very simple to operate. The moon pool area
Displacement
m (230-10,000 ft.), with a well depth to 10,000 is designed to accommodate an 18 ¾ in.,
- transit 44,580 tonnes
m (33,000 ft.), with favorable motion char- 15,000 psi BOP stack and for independent
- survival 60,240 tonnes
acteristics, freeboard, and station-keeping. handling of BOP stack and christmas trees.
- operating 65,300 tonnes
The rig can adapt to tropical conditions by Both main and auxiliary rig are equipped
Draft
means of additional chilled water units and with under hull and over hull guiding sys-
- transit 9.7 m
increased circulation pump capacity for the tems for BOP/christmas trees. The dual ac-
- survival 19.0 m
air conditioning system. The base version of tivity well centers and the independent han-
- operating 23.0 m
the rig is winterized, with cladded derrick dling of BOP and christmas trees provide
Air-gap 18.5 m
and heat tracing. It has minimum 7,000 met- for a range of simultaneous operations with
ric tons (7,716 tons) variable payload in tran- a potential to save time and costs.
sit, up to 10,000 metric tons (11,023 tons) in
survival and operating condition. Two Aker Built for harsh environments year wave height, which is important for
H-6e drilling rigs, Aker Spitsbergen and Aker The Aker H-6e rig is designed for ex- deck elevation and fatigue requirements.
Barents, were scheduled for delivery in June treme environmental conditions based on For the thrusters and mooring system, the
2009 to the owner Aker Drilling, by the Aker the DNV recommendation for worldwide combined forces from wind, current, and
Solutions yard at Stord on the west coast of operations including the North Atlantic. waves set the dimensions. For operability,
Norway. Both rigs will then begin long-term Dimensioning of the rig considers the 100- it is usually a combination of wind, wave,
contracts on the Norwegian conti- and current forces which size the
nental shelf. thrusters in order to keep the rig
Aker H-6e key technical features within the defined offset criteria
Drilling system Design DP Drilling Vessel, Aker Solutions while drilling.
and arrangement Registration Bahamas In areas where hurricanes or
The drilling systems feature a Classification +DNV 1A1, Column Stabilized Drilling Unit (N), DRILL (N), typhoons occur, with reliable
double RamRig, which is a latest HELDK, CRANE, E0, DYNPOS AUTRO, POSMOOR ATA weather predictions the rig can
generation hydraulic lifting cylin- Water Depth 3,000 m (10,000 ft) operate as long as the forecast
der concept with two independent Drilling depth 10,000 m (33,000 ft) allows necessary time to discon-
drilling and hoisting systems; the Variable Drilling Load 7,000 tonnes in transit nect from drilling operations.
main and the auxiliary well cen- Operation and survival 10,000 tonnes This is also true when condi-
ter allow parallel operations. The Diesel Generators 8 x 5 300 kW, 720 rpm tions exceed the North Atlantic
main rig capacity is 1,000 tons Thrusters 8 x 4 500 kW, 800 kN bollard pull, design criteria. In most cases the
(907 metic tons) and is equipped variable speed, fixed pitch rig will be able to evacuate the
with four hydraulic cylinders Mooring system (optional) 8 point anchor line system, 84 mm Stud Chain, storm area, but if not, it has suf-
while the auxiliary rig capacity is 15 tonnes anchors Stevpris Mk5. ficient thrust and redundancy to
500 tons (545 metric tons) and is Windlasses (optional) 4 double winches maneuver. In areas with design
equipped with two cylinders. The Living Quarters 140 single bed cabins, extendable to 160 wind speed exceeding 100 knots,
arrangement accommodates low Helicopter Deck Sikorsky S92 and S-61N, Superpuma AS332L2, which is the dimensioning wind
vertical set-back at lower deck EC225 and EH-101. for stability and allowable VCG
level for tubulars and risers, with Lifeboats Free fall type, 4 x 80 men and corresponding variable drill-
a fingerboard for tubulars on the Deck cranes 2 ea, max capacity: 85 tonnes at 17 m, max reach 51 m ing load (VDL), the allowable
drill floor level. The riser type is VCG in survival condition may be
the Aker Solutions Clip design reduced to account for a larger

62 Offshore July 2009 • www.offshore-mag.com

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wind induced heeling moment. and column shapes for hull geometries with
The regular environmental conditions, up the same displacement, draft, and waterline
to a one-year condition are more important area, and thus have similar heave natural
to efficiency and operability of the rig than period.
are the extreme conditions. In areas with Selecting the optimal heave natural period
hurricanes and typhoons, the operational is also a factor that affects heave responses
conditions usually are significantly better for operational sea states. The heave natural
than those in the North Atlantic. period usually is sufficiently high to avoid
The comparison between 100-year and resonance motions in extreme storms. Re-
one-year environmental forces shows that cent hull designs seem to have a lower heave
although the extreme condition exceeds the natural period than third generation drilling
design criteria, which might reduce the pay- rigs like the Aker H-3. This means that the
load under survival condition, the capability hull structure has to be designed for larger
and operability in operating condition will be extreme responses which have a positive ef-
as good or better in hurricane and typhoon fect in operational conditions.
areas compared to the North Atlantic con- The roll and pitch depend on hull ge-
ditions. For areas with high wind speed but ometry, column size and number, pontoon A more
relatively small waves compared with North shape, mass properties, etc. However, the
Atlantic conditions, a reduced survival pay-
load may be compensated by the fact that
hull design must also consider layout, struc-
tural, and tank arrangements, etc.
cost-efficient
the rig has enough air-gap to stay on operat-
ing draft during extreme events. Air-gap operation when
A parameter governing hull size, stabil-
Motions ity, and carrying capacity is the elevation installing deep.
During the hull design and sizing pro- of the bottom deck. Depending on the envi-
cess, the operational motions and air-gap ronmental conditions the rig is designed to
were important factors. Building on the mo- meet, there is a relationship between oper-
tion characteristics of the Aker H-4.2, the ating and survival draft, operating and sur-
goal for the new geometry was comparable vival air-gap or distance from the WL (water
or better motion characteristics. For drilling level) to bottom deck. Most drilling rigs are
operations, the combined heave, roll, and designed with one or a range of operational
pitch motions at well center are the most im- drafts and a survival draft for extreme condi-
portant limits. Comparing heave motions for tions.
different alternative designs shows that one For harsh conditions, selecting a survival
governing parameter is the draft in general draft that gives sufficient deck clearance to
– the deeper the operating draft, the better avoid waves hitting the deck structure in
They’re strong. Lightweight. Easy to
the performance. extreme storms is important to avoid dam-
handle and extremely durable. Find out
Comparing heave motions for operational ages to the structure and safety equipment.
how ropes made with Dyneema®,
sea states with wave peak period between One can design the structure for these wave
the world’s strongest fiber™,
eight to 17 seconds, away from any reso- loads, but the uncertainties in predicting
can help you run a more cost-efficient
nance or cancellation periods, the heave is these loads are high and the consequences
offshore operation.
almost independent of number of columns of downtime repair can be considerable.
No matter how deep you go.

Environmental criteria (100-year conditions) For more information, visit

www.lesspressureoffshore.com
Environmental North Atlantic GOM Asia/Pacific
parameter (H-6e design criteria) (deep water) (deep water, typhoon area)
100 year waves (Hs, Tp) Hs = 17.5 m Hs = 12.0 m Hs = 12.0 m – 15.0 m
Tp = 16.8 s Tp = 15.0 s Tp = 13.0 – 20.0 s
100 year wind (1hr, 10 m) 36.0 m/s 45.0 m/s 35 m/s – 65 m/s
10 year current (surface) 1.1 m/s 0.5 m/s – 2.3 m/s 2 m/s – 3 m/s

Environmental criteria (one- year conditions)

Environmental North Atlantic GOM Asia/Pacific
parameter (H-6e design criteria) (deep water) (deep water, typhoon area)
1 year waves (Hs, Tp) Hs = 12.8 m Hs = 4.0 m Hs = 5.0 m -6.0 m
Tp = 15.6 s Tp = 9.0 s Tp = 9.0 - 11.0 s
1 year wind (1hr, 10 m) 29.5 m/s 15.0 m/s 17 m/s
1 year current (surface) 0.9 m/s 0.4 m/s 1.8 m/s

www.offshore-mag.com • July 2009 Offshore 63

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DRILLING & COMPLETION

Comparison of mean environmental forces extreme condition Comparison of mean environmental forces operating condition
12,000 4,000
3,500
10,000
3,000
8,000 2,500 Wave
Force (kN)

Force (kN)
Wave
2,000 Current
6,000 Current
1,500 Wind
Wind
4,000 1,000
500
2,000
0
North Atlantic GOM Asia/Pacific
0
North Atlantic GOM Asia/Pacific Geographic area
Geographic area

The Aker H-6e rig is designed with a relatively large deck eleva- Station keeping
tion, with enough air-gap to avoid damages in a 100-year condition in The Aker H-6e rig is designed as DP-3, with the option for thrust-
the North Atlantic, with significant wave height of 17.5 mm (57 ft). er assisted mooring in water depths from 100 m to 500 m (328 ft
For operability, it is important that air-gap is not the determinant to 1,640 ft), or alternatively a pre-set system in deeper water. The
for going to a deeper draft above operational restrictions, but that DP system can keep the MODU on location in all operational condi-
there is some margin from the limiting operational sea state for drill- tions.
ing operations and for staying connected to the riser, the limiting sea The rig is designed for a minimum 8-knot transit speed in calm
state for air-gap and required survival draft. weather (sea trials have shown more than 10 knots). For longer tran-
In design of the Aker H-6e drilling rigs, air-gap in operational sits, the rig either can use its own power or be supported by tugs.
condition is governed by a BF 11-12 condition, which means one Aker H-6e is capable of having full set back in transit. 
can stay on operational draft longer than the criteria for staying con-
nected to the riser. This means that for 99.8% of the year in the North Editor’s note: This is an updated version of a paper presented at PennWell’s Deep
Atlantic, the rig can stay on operation draft. Offshore Technology (DOT) conference in Perth, Australia, Dec. 3-5, 2008.

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CALL FOR ABSTRACTS

Issues and Solutions for Asia’s E&P Challenges

Deadline 10 August 2009

For information and continual event updates, visit: www.offshoreasiaevent.com

16 – 18 March 2010 𰀺 Kuala Lumpur Convention Centre (KLCC)

Kuala Lumpur, Malaysia
www.offshoreasiaevent.com

Owned & Produced by: Flagship Media Sponsors: Incorporating:

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OFFSHORE ASIA 2010 OVERVIEW

Issues and Solutions for Asia’s E&P Challenges Who will be your Audience?
Share your knowledge and experiences with the leaders of Oil and Gas industry professionals, experts and managers,
the Asia-Pacific offshore oil and gas industry at the 2010 including:
Offshore Asia Conference & Exhibition.
        
The 2010 Offshore Asia Conference & Exhibition will once technologies for future operations
again bring together the best and brightest minds from the
global industry to take part in the technical program. The          
conference theme “Issues and Solutions for Asia’s E&P regional operators
Challenges” focuses on the specific technological needs      
of the Asian offshore arena.
        
The 2010 conference will gather Industry professionals
from throughout the world and from the energy centers      
of the Asia-Pacific area – including Malaysia, Indonesia,
    
China, Thailand, Vietnam, Australia, New Zealand and
India – for this event, the only conference focused entirely    
on Asian offshore exploration and production.

CALL FOR PAPERS

The Advisory Board for Offshore Asia is now accepting abstracts for the Offshore Asia Conference 2010. We invite
you to submit an abstract and share your knowledge, experience and solutions with industry colleagues from around
the world.

HOW TO SUBMIT YOUR ABSTRACT

Deadline: 10 August 2009
Abstracts must have a title and list all authors. Full contact information for the primary contact author (company affiliation,
telephone, mobile number and email address) must be provided. Please designate which author will be the speaker.
Presentations must be of interest and of practical value to executives, managers, engineers engaged in the petroleum
industry. Papers will be selected based on a review of abstracts by the Advisory Board. Papers must not be commercial
in nature. Your abstract should address one or more of the topics pertaining to one of the technical areas outlined in
this document.

To submit an abstract for consideration by the Offshore Asia Advisory Board, please follow
the procedures below:
 Go to www.offshoreasiaevent.com  Press submit or send
 Click on submit abstracts in the left navigation bar  Relax, it’s now all done
 Complete required fields

Please submit your abstract ONLY ONCE and wait for the automatic e-mail that confirms your submission
was successful.

Abstract submittal deadline: 10 August 2009

SUBMIT ONLINE: www.offshoreasiaevent.com

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TECHNICAL FOCUS AREA

Your abstract should address one or more of the following areas:

Track 1: E&P / Subsea Technology Track 2: Multiphase Pumping Technology

 Drilling Rigs and Equipment  Recent oil field experience with multiphase
 Well Construction & Drilling Operations pumps and flowmeters, including heavy and
conventional oil, wet-gas compression, and
 Floating Production Systems offshore applications.
 Riser Technology  Wet gas compression and offloading of gas wells
 Production Systems  Control and operational issues with multiphase pumps
 Offshore Construction/Installation and flowmeters.
 Production Optimization  Design considerations for multiphase-pump packages
 Flow Assurance and auxiliary equipment, including shop testing of
pumps.
 Station-keeping and Mooring
 Multiphase-flow measurements for allocating
 Subsea Technology production from fields and reservoirs in both the
 Subsea Boosting, Metering and Processing onshore and offshore environments.
 Subsea Intervention  Advantages of multiphase flowmeters compared to
 Offshore Support Vessels separator measurements.

 Advanced Materials and Technology  Multiphase flowmeter and wet-gas meter qualification,
field testing, and selection.
 Multiphase Fluid Transportation and Flow Meter
Technologies  Multiphase technology considerations for production

 Field Development – Lessons Learned and reservoir engineering and management.

 Trends in Deepwater Exploration and  Multiphase pumps and flowmeters for reducing carbon
Development dioxide emission.

 Field Architecture and Economics  Multiphase pumps and flowmeters for reducing flaring
during well testing.
 Project Management and Execution
 The acceptance by industry of mutiphase flowmeter
 Doing More with Less accuracy and ways to improve measurements.
 Economic and Geographic Trends  Multiphase pumping versus conventional artificial lift
 Doing Business in Asian Markets methods.
 Developing Offshore Gas Reserves  Pressure losses in multiphase flowlines.
 Regional Challenges  Calculation of actual combined fluid viscosity of the
flow stream.
 Managing Risk
 Rationalization and restructuring in older fields and
 Flowlines and Pipelines
enabling of smart fields.
 Technology Transfer
 Single-phase technology used in multiphase streams
 Remote Monitoring & Control such as Coriolis, vortex, turbine, etc.
 Completion design  Advances in Developing the Subsea Multiphase
Pumping & Flowmeter

Abstract submittal deadline: 10 August 2009

SUBMIT ONLINE: www.offshoreasiaevent.com

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CONTACTS
For exhibit and sponsorship information, please contact:

Michael Yee Sue Neighbors Ana Monteiro

(Asia-Pacific & Australasia) (Americas) (Southern Europe, Africa)
Phone: +65 9616 8080 Phone: +1 713 963 6256 Phone: +44 (0)1992 656 658
Fax: +65 6734 0655 Fax: +1 713 963 6212 Mobile: +44 (0)7985 229 324
Email: [email protected] Email: [email protected] Fax: +44 (0)1992 656 700
Email: [email protected]
Jane Bailey Simon Kears
(UK, Northern Europe, Middle East) Marketing
Phone: +44 (0)1992 656 651 Phone: +44 (0)1992 656 647
Mobile: +44 (0)7983 388 367 Fax: +44 (0)1992 656 700
Fax: +44 (0)1992 656 700
Email: [email protected]
Email: [email protected]

For further information about participating at the conference as a speaker or as a delegate, please contact:
Frances Webb Niki Vrettos
Event Director Conference Manager
T: +44 (0) 1628 810 562 Phone: +44 (0)1992 656 630
F: +44 (0) 1628 810 762 Fax: +44 (0)1992 656 700
E: [email protected] Email: [email protected]

FAX BACK THIS FORM TO + 44 (0) 1992 656 700

for more information about participating at Offshore Asia 2010

Name I would like more information:

r Attending Offshore Asia 2010 as an individual/corporate delegate
Title: r Opportunity to present a paper for Offshore Asia 2010 conference
r Exhibiting at Offshore Asia 2010
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Address:
Offshore Asia 2010 is a PennWell Corporation event
PLEASE INDICATE

Please tick the relevant box if you DO NOT wish to receive

information about:
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Don’t miss Oil & Gas Maintenance

Technology North America
The region’s only event exclusively covering the maintenance
and reliability of oil and gas operations!

Conference & Exhibition

September 1-3, 2009 • New Orleans, LA
Hilton New Orleans Riverside

This premier event for maintenance and reliability technologies in North America will offer conference content
focusing on the latest developments in pipeline rehabilitation and oil and gas maintenance, with sessions
covering upstream, midstream and downstream.

The OGMT North America conference will attract a senior

level audience from across the spectrum of maintenance Register Today!
including:

• Engineers and managers 3 Easy Ways to Register

• Field engineers and supervisors 1. online: www.ogmtna.com
• Operations planning personnel 2. fax: Direct 1-918-831-9161
• Suppliers or Toll-Free (US only) 1-888-299-8057
• Consultants 3. mail: PennWell Registration OGMT North
• Business developers America, PO Box 973059, Dallas, TX
• And more! 75397-3059 USA

Owned & Produced by: Flagship Media Sponsors: Sponsored By:

®

www.ogmtna.com

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SUBSEA

Resolving ‘Big Three’ essential

to increasing subsea production

M
ention improved or tertiary recov- Jim Redden tends have recovery factors as low as 15%. In
ery and usually the first things that Contributing Editor a $1.6-million research project, funded par-
come to mind are injecting gas and tially by the Research Partnership to Secure
chemicals or employing ultrasonic Energy for America (RPSEA) public-private
stimulation and other techniques cooperative, Houston’s Knowledge Reser-
to pry elusive reserves from producing wells. platform has to be the long-term objective. voir LLC is teaming with Anadarko Petro-
However, for subsea engineers the system- We’re going deeper and we have all these leum Corp. and Louisiana State University to
atic development of technologies that focus wonderful adjacencies that can help us meet “identify and document” improved oil recov-
on the big three of “processing, power, and that vision, like longer step-outs, transmit- ery opportunities in the deepwater and ultra
pumping” hold the keys for maximizing the ting power from shore, and remote monitor- deepwater Gulf of Mexico. According to the
recovery of innumerable deepwater assets ing and diagnostic capabilities. We’re also prospectus, the project “focuses on improved
that otherwise would remain stranded. working on compact subsea separation tech- recovery methods and opportunities that
That, says Manuel Terranova, GE Oil & nologies for the deepwater. All of these will can be anticipated in the early stages of field
Gas senior VP of subsea product platform help enable a platform-less future,” he says. development through modified surface and
and commercial operations, will make even One of the most recent attempts at doing just subsurface infrastructure design.”
comparatively small deep and ultra deepwa- that is about to unfold on the Ormen Lange de- That surface infrastructure is what Ter-
ter fields economical. While others look at velopment off Norway where GE is set to pilot ranova hopes to minimize considerably or
near-term opportunities to increase produc- test the world’s first subsea compressor, with eliminate altogether. He admits, however,
tion from existing deepwater fields, Terrano- an aim toward producing the gas field without that taking concepts, like the one under trial
va believes increasing subsea recovery over a platform. Developed jointly with Aker Solu- at Ormen Lange, from the exceptional to the
the long-term must focus on extending field tions, the centrifugal compressor is driven by a routine first requires overcoming a “multitude
life appreciably and in slashing costs, even gas-filled, high-speed electric motor stacked in of issues,” not the least of which is transmit-
to the point of making surface production fa- a vertical orientation and packaged in a single ting power to ultra long step-outs. This will be
cilities obsolete. Doing so, however, means sealed housing to withstand extreme hydro- especially critical in achieving the industry’s
resolving the technological hurdles of deep- static pressure. objective of eventually making deepwater and
water subsea processing, transmitting pow- In the meantime, efforts also are under ultra deepwater fields of less than 100 MMbbl
er for ultra long step-outs, and boosting flow way to determine how to increase production economically viable, he says.
through compression or pumping. from existing deepwater fields, which the US “The primary technological gap, especial-
“Our vision is that the elimination of the Minerals Management Service (MMS) con- ly in smaller fields, is power. We have been

Adopting hard-face coating technology from the energy and aviation businesses, the twin-screw, multi-phase pump is designed for differential pres-
sures of 150 bar (15 MPa) and above, even at very high gas-volume fractions. Illustration courtesy of GE.

66 Offshore July 2009 • www.offshore-mag.com

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D E E P W A T E R S O L U T I O N S
𰁅𰁝𰁤𰁩𰁤𰀯𰀕𰀹𰁖𰁜𰀕𰁂𰁮𰁧𰁚𰁨𰁩𰁧𰁖𰁣𰁙𰀤𰁈𰁩𰁖𰁩𰁤𰁞𰁡𰀽𰁮𰁙𰁧𰁤

The
deeper
you go,
the closer
Unmatched
we are.
infrastructure
𰀶𰁘𰁘𰁚𰁨𰁨𰀕𰁩𰁝𰁚𰀕𰁢𰁤𰁨𰁩𰀕𰁚𰁭𰁩𰁚𰁣𰁨𰁞𰁫𰁚𰀕𰁙𰁚𰁚𰁥𰁬𰁖𰁩𰁚𰁧𰀕
𰁡𰁤𰁜𰁞𰁨𰁩𰁞𰁘𰁨𰀕𰁣𰁚𰁩𰁬𰁤𰁧𰁠𰀰𰀕𰁝𰁞𰁜𰁝𰀢𰁘𰁖𰁥𰁖𰁘𰁞𰁩𰁮𰀡𰀕𰁛𰁖𰁨𰁩𰀢𰀕 𰁅𰁝𰁤𰁩𰁤𰀯𰀕𰀽𰁖𰁧𰁖𰁡𰁙𰀕𰁅𰁚𰁩𰁩𰁚𰁧𰁨𰁚𰁣𰀤𰁈𰁩𰁖𰁩𰁤𰁞𰁡𰀽𰁮𰁙𰁧𰁤
𰁩𰁪𰁧𰁣𰁖𰁧𰁤𰁪𰁣𰁙𰀕𰁛𰁖𰁘𰁞𰁡𰁞𰁩𰁞𰁚𰁨𰀕𰁖𰁩𰀕𰁠𰁚𰁮𰀕𰁥𰁤𰁧𰁩𰁨𰀕𰁖𰁣𰁙𰀕
𰀨𰀥𰀕𰁨𰁩𰁧𰁖𰁩𰁚𰁜𰁞𰁘𰁖𰁡𰁡𰁮𰀕𰁡𰁤𰁘𰁖𰁩𰁚𰁙𰀕𰁙𰁚𰁚𰁥𰁬𰁖𰁩𰁚𰁧𰀕 Experienced personnel
𰁗𰁖𰁨𰁚𰁨𰀕𰁬𰁤𰁧𰁡𰁙𰁬𰁞𰁙𰁚𰀣 𰁌𰁚𰀕𰁝𰁖𰁫𰁚𰀕𰁤𰁫𰁚𰁧𰀕𰀧𰀥𰀥𰀕𰁙𰁚𰁚𰁥𰁬𰁖𰁩𰁚𰁧𰀢𰁘𰁚𰁧𰁩𰁞𰁛𰁞𰁚𰁙𰀕
𰁨𰁥𰁚𰁘𰁞𰁖𰁡𰁞𰁨𰁩𰁨𰀡𰀕𰁨𰁘𰁝𰁤𰁤𰁡𰁚𰁙𰀕𰁞𰁣𰀕𰁩𰁝𰁚𰀕𰁡𰁖𰁩𰁚𰁨𰁩𰀕 Tailored technology
𰁩𰁚𰁘𰁝𰁣𰁤𰁡𰁤𰁜𰁞𰁚𰁨𰀕𰁖𰁣𰁙𰀕𰁚𰁭𰁥𰁚𰁧𰁞𰁚𰁣𰁘𰁚𰁙𰀕𰁞𰁣𰀕𰁩𰁝𰁚𰀕 𰁌𰁚𰀕𰁝𰁖𰁫𰁚𰀕𰁢𰁖𰁙𰁚𰀕𰁨𰁞𰁜𰁣𰁞𰁛𰁞𰁘𰁖𰁣𰁩𰀕
𰁩𰁤𰁪𰁜𰁝𰁚𰁨𰁩𰀕𰁗𰁖𰁨𰁞𰁣𰁨𰀣 𰁞𰁣𰁫𰁚𰁨𰁩𰁢𰁚𰁣𰁩𰁨𰀕𰁞𰁣𰀕𰁙𰁚𰁚𰁥𰁬𰁖𰁩𰁚𰁧𰀕𰁛𰁡𰁪𰁞𰁙𰁨𰀕𰁖𰁣𰁙𰀕
𰁧𰁚𰁡𰁖𰁩𰁚𰁙𰀕𰁩𰁚𰁘𰁝𰁣𰁤𰁡𰁤𰁜𰁞𰁚𰁨𰀡𰀕𰁛𰁧𰁤𰁢𰀕𰁩𰁝𰁚𰀕𰁢𰁤𰁨𰁩𰀕
𰁚𰁣𰁫𰁞𰁧𰁤𰁣𰁢𰁚𰁣𰁩𰁖𰁡𰁡𰁮𰀕𰁖𰁘𰁘𰁚𰁥𰁩𰁖𰁗𰁡𰁚𰀕𰁙𰁧𰁞𰁡𰁡𰁞𰁣𰁜𰀕
𰁛𰁡𰁪𰁞𰁙𰁨𰀕𰁩𰁤𰀕𰁨𰁩𰁖𰁩𰁚𰀢𰁤𰁛𰀢𰁩𰁝𰁚𰀢𰁖𰁧𰁩𰀕𰁬𰁚𰁡𰁡𰁗𰁤𰁧𰁚𰀕
𰁢𰁤𰁙𰁚𰁡𰁞𰁣𰁜𰀕𰁖𰁣𰁙𰀕𰁫𰁞𰁨𰁪𰁖𰁡𰁞𰁯𰁖𰁩𰁞𰁤𰁣𰀕𰁨𰁤𰁛𰁩𰁬𰁖𰁧𰁚𰀣

𰁌𰁞𰁩𰁝𰀕𰀺𰀛𰁅𰀕𰁤𰁥𰁚𰁧𰁖𰁩𰁞𰁤𰁣𰁨𰀕𰁙𰁧𰁞𰁫𰁚𰁣𰀕𰁩𰁤𰀕𰁚𰁫𰁚𰁧𰀢𰁜𰁧𰁚𰁖𰁩𰁚𰁧𰀕𰁙𰁚𰁥𰁩𰁝𰁨𰀕𰁛𰁤𰁧𰀕
𰁤𰁛𰁛𰁨𰁝𰁤𰁧𰁚𰀕𰁤𰁞𰁡𰀕𰁖𰁣𰁙𰀕𰁜𰁖𰁨𰀡𰀕𰁩𰁝𰁚𰁧𰁚𰃉𰁨𰀕𰁤𰁣𰁚𰀕𰁨𰁚𰁧𰁫𰁞𰁘𰁚𰀕𰁥𰁖𰁧𰁩𰁣𰁚𰁧𰀕𰁜𰁤𰁞𰁣𰁜𰀕𰁩𰁤𰀕
𰁜𰁧𰁚𰁖𰁩𰁚𰁧𰀕𰁡𰁚𰁣𰁜𰁩𰁝𰁨𰀕𰁩𰁤𰀕𰁝𰁚𰁡𰁥𰀕𰁤𰁫𰁚𰁧𰁘𰁤𰁢𰁚𰀕𰁩𰁝𰁚𰀕𰁪𰁣𰁞𰁦𰁪𰁚𰀕𰁘𰁝𰁖𰁡𰁡𰁚𰁣𰁜𰁚𰁨𰀕𰀕
𰁤𰁛𰀕𰁙𰁚𰁚𰁥𰁬𰁖𰁩𰁚𰁧𰀕𰁥𰁧𰁤𰁟𰁚𰁘𰁩𰁨𰀯𰀕𰁂𰀢𰀾𰀕𰁈𰁌𰀶𰀸𰁄𰀣
𰁄𰁫𰁚𰁧𰀕𰁩𰁝𰁚𰀕𰁡𰁖𰁨𰁩𰀕𰀦𰀪𰀕𰁮𰁚𰁖𰁧𰁨𰀡𰀕𰁬𰁚𰃉𰁫𰁚𰀕𰁖𰁨𰁨𰁚𰁢𰁗𰁡𰁚𰁙𰀕𰁖𰀕𰁘𰁤𰁢𰁥𰁧𰁚𰁝𰁚𰁣𰁨𰁞𰁫𰁚𰀕
𰁧𰁖𰁣𰁜𰁚𰀕𰁤𰁛𰀕𰁧𰁚𰁨𰁤𰁪𰁧𰁘𰁚𰁨𰀕𰁛𰁤𰁧𰀕𰁢𰁚𰁚𰁩𰁞𰁣𰁜𰀕𰁩𰁝𰁚𰀕𰁨𰁥𰁚𰁘𰁞𰁛𰁞𰁘𰀕𰁣𰁚𰁚𰁙𰁨𰀕𰁤𰁛𰀕
𰁙𰁚𰁚𰁥𰁬𰁖𰁩𰁚𰁧𰀕𰁤𰁥𰁚𰁧𰁖𰁩𰁞𰁤𰁣𰁨𰀣𰀕𰀶𰁡𰁡𰀕𰁤𰁛𰀕𰁤𰁪𰁧𰀕𰁨𰁤𰁡𰁪𰁩𰁞𰁤𰁣𰁨𰀕𰁛𰁤𰁘𰁪𰁨𰀕𰁤𰁣𰀕
𰁤𰁥𰁩𰁞𰁢𰁞𰁯𰁞𰁣𰁜𰀕𰁩𰁝𰁚𰀕𰁥𰁚𰁧𰁛𰁤𰁧𰁢𰁖𰁣𰁘𰁚𰀕𰁤𰁛𰀕𰁤𰁪𰁧𰀕𰁘𰁪𰁨𰁩𰁤𰁢𰁚𰁧𰁨𰃉𰀕𰁖𰁘𰁩𰁞𰁫𰁞𰁩𰁞𰁚𰁨𰀕𰃄𰀕
𰁛𰁧𰁤𰁢𰀕𰁙𰁧𰁞𰁡𰁡𰁞𰁣𰁜𰀕𰁩𰁝𰁧𰁤𰁪𰁜𰁝𰀕𰁥𰁧𰁤𰁙𰁪𰁘𰁩𰁞𰁤𰁣𰀕𰃄𰀕𰁬𰁝𰁞𰁡𰁚𰀕𰁥𰁧𰁤𰁩𰁚𰁘𰁩𰁞𰁣𰁜𰀕𰁩𰁝𰁚𰁞𰁧𰀕
𰁙𰁚𰁚𰁥𰁬𰁖𰁩𰁚𰁧𰀕𰁖𰁨𰁨𰁚𰁩𰁨𰀕𰁖𰁣𰁙𰀕𰁩𰁝𰁚𰀕𰁚𰁣𰁫𰁞𰁧𰁤𰁣𰁢𰁚𰁣𰁩𰀣
𰀶𰁨𰀕𰁖𰀕𰁧𰁚𰁨𰁪𰁡𰁩𰀡𰀕𰁬𰁚𰃉𰁫𰁚𰀕𰁝𰁚𰁡𰁥𰁚𰁙𰀕𰁤𰁥𰁚𰁧𰁖𰁩𰁤𰁧𰁨𰀕𰁙𰁧𰁞𰁡𰁡𰀕𰁢𰁤𰁧𰁚𰀕𰁩𰁝𰁖𰁣𰀕𰁝𰁖𰁡𰁛𰀕𰁤𰁛𰀕
𰁩𰁝𰁚𰀕𰁬𰁤𰁧𰁡𰁙𰃉𰁨𰀕𰁙𰁚𰁚𰁥𰀕𰁖𰁣𰁙𰀕𰁪𰁡𰁩𰁧𰁖𰀢𰁙𰁚𰁚𰁥𰁬𰁖𰁩𰁚𰁧𰀕𰁬𰁚𰁡𰁡𰁨𰀣𰀕𰁉𰁝𰁞𰁨𰀕𰁢𰁚𰁖𰁣𰁨𰀕𰀕
𰁣𰁤𰀕𰁤𰁣𰁚𰀕𰁞𰁨𰀕𰁗𰁚𰁩𰁩𰁚𰁧𰀕𰁥𰁤𰁨𰁞𰁩𰁞𰁤𰁣𰁚𰁙𰀕𰁤𰁧𰀕𰁚𰁦𰁪𰁞𰁥𰁥𰁚𰁙𰀕𰁩𰁤𰀕𰁨𰁪𰁥𰁥𰁤𰁧𰁩𰀕𰁮𰁤𰁪𰁧𰀕
𰁙𰁚𰁚𰁥𰁬𰁖𰁩𰁚𰁧𰀕𰁤𰁥𰁚𰁧𰁖𰁩𰁞𰁤𰁣𰁨𰀕𰁩𰁝𰁖𰁣𰀕𰁂𰀢𰀾𰀕𰁈𰁌𰀶𰀸𰁄𰀡𰀕𰁬𰁝𰁚𰁧𰁚𰁫𰁚𰁧𰀕𰁮𰁤𰁪𰁧𰀕
𰁣𰁚𰁭𰁩𰀕𰁥𰁧𰁤𰁟𰁚𰁘𰁩𰀕𰁩𰁖𰁠𰁚𰁨𰀕𰁮𰁤𰁪𰀣

𰁉𰁝𰁚𰀕𰁙𰁚𰁚𰁥𰁚𰁧𰀕𰁮𰁤𰁪𰀕𰁜𰁤𰀡𰀕𰁩𰁝𰁚𰀕𰁘𰁡𰁤𰁨𰁚𰁧𰀕𰁬𰁚𰀕𰁖𰁧𰁚𰀣
Drilling Wellbore Production Environmental
Solutions Productivity Technologies Solutions 𰁬𰁬𰁬𰀣𰁢𰁞𰁨𰁬𰁖𰁘𰁤𰀣𰁘𰁤𰁢
_______________

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SUBSEA

GE looking to other industries for subsea technology

Offshore recently met with Michael Bellamy, GM of marketing specific to tie-back and subsea processing. We are pilot testing the
for GE Oil & Gas, at the company’s headquarters in Florence, Italy, subsea gas compressor in Norway and we are developing a subsea
to discuss the company’s strategy to develop technologies for the multi-phase pump. Here, we are taking a different approach in that
subsea market. we really are trying to develop a subsea multi-phase pump from the
Offshore: One issue discussed at the Offshore Technol- ground up. Most other multi-phase pumps have been
ogy Conference in Houston was the transfer of technolo- designed for onshore applications and then are adapted
gies from other industries into the subsea market. What for the marine environment. What we’re saying is there
have you taken from the other industries you serve? are very specific issues with multi-phase pumps in subsea
Bellamy: One of the very exciting things about GE is environments and we’re designing it with those in mind.
that we have access to this huge range of technologies The requirements to find oil and gas are rising every
and we are definitely trying to take advantage of that. year. So, the more we can beg and borrow from other
And, these are technologies that are well-referenced in industries, the better off we will be.
other applications. For example, we are bringing in a great Offshore: How critical is subsea processing in improv-
deal of science from the aircraft industry in erosion-proof ing subsea recovery rates, and where are we in that
coatings for subsea systems and sealing systems from regard?
the locomotive industry. These are all mission-critical ap- Bellamy: In the whole area of subsea processing, we
plications with very stringent safety requirements, so by “Advanced subsea need technologies that people feel comfortable with. I think
working closely with our customers we can give them the technologies already this technology will really revolutionize the amount of pro-
exist, but elsewhere.”
confidence that the technology is there and proven. duction from the subsea. Once you have developed these
Offshore: So I gather this is the thrust of GE’s technol- –GE’s Bellamy systems and eliminated the surface facility, it just opens up
ogy marketing strategy? so many more prospects for developments. That’s critical,
Bellamy: Yes. We have a program called Innovation Today. What because some of these finds are relatively small and you cannot afford
that means is the innovations are there already. It might be new to the a billion-dollar platform. So, you have to eliminate the surface facility
oil and gas industry, but it exists. and lower costs or these reserves are not economical.
The industry always has been nervous about trying new things and Offshore: Geographically, where do you see the most attractive
we feel this will help us bridge that gap by showing while it may seem opportunities for subsea technologies?
new, it really is not. These concepts and these technologies are well Bellamy: The Gulf of Mexico, of course, will always be of interest and
established in aircraft engines and other industries. where we see a lot of activity now is still West Africa. Right now, one of
Offshore: The GE acquisitions of VetcoGray and Hydril certainly the hot spots for us is in Australia and we are very optimistic about Aus-
give you a significant portfolio of subsea technologies. How are those tralia and all of Asia. The reserves are there and the political will is there.
being leveraged and what areas are you concentrating on now? So, we are very optimistic about Australia and Brazil with drilling
Bellamy: All of our subsea technology work is based out of Hous- the presalt. We have seen a lot of good business coming from Brazil
ton, Aberdeen, and Norway and, yes, they really are a result of the (including a recently announced three-year contract to supply Petro-
VetcoGray/Hydril acquisitions. We are working on a number of things bras with 250 VetcoGray wellhead systems).

actively looking at subsea (power) transmis- “I charge each of our product managers Flow assurance
sion and have had some early success with to ask themselves, ‘Where have we solved critical
our subsea magnetic transmission controller. this problem before?’ or at least an analogous There also is the matter of flow assurance,
Basically, we’re trying to fill the gap between problem. For example, for the SemStar5 (sub- which Terranova says, likewise, is essential
what we know will be a DC world 10 years sea electronics module) we leveraged boards to increase the productive life of major deep-
from now, with something of value (in the from the robotics industry. So, it’s easy to water fields to 25 to 40 years. “Effective mod-
near-term) that will enable the industry to demonstrate that these are referenced tech- eling and flow assurance will be the keys to a
go deeper with longer step-outs. An AC (con- nologies,” he says. 40-year design life. For the larger fields, the
trolled) step-out beyond the 90-km (56-mi) Another issue Terranova says must be re- production cycle has to be extended. So, we
mark will be a huge breakthrough,” he says. solved is subsea processing. To that end, GE have to ask ourselves ‘How will I get the reli-
“We have looked hard at the correlations Global Research in New York is teaming with ability?’ The key, I believe, is using materials
between deeper depths and long step-outs, so its VetcoGray business to develop a subsea science at its best.”
we have devoted a lot of resources into subsea processing simulator with the intention of The issue of flow assurance is the center-
tolerance and transmission and distribution. providing a network to predict the in-situ per- piece of an alliance with GE and SPT Group
For example, we have pulled from GE’s land formance of compact separation components AS of Norway. The ultimate goal is to pro-
transmission and distribution experience and and systems over their productive field life. vide online flow assurance solutions based
looked at how we can take that and make it The $1.2-million RPSEA research program on the SPT OLGA simulator that engineers
easier to get power to the subsea.” aims to develop faster and more widespread oil, gas, and water flow in wells, pipelines,
deployment of subsea processing systems. and receiving facilities.
Technology transfer vital “This is an extremely difficult problem and “If you are able to non-destructively mod-
Therein lies the key to unlocking technol- one the industry has been trying to solve for el how that (subsea) system’s topology will
ogies to maximize subsea production. With 15 years. It’s difficult enough to successfully behave you can make better prognostics on
its experience in diverse industries, he says, model turbulent or laminar flow in a single field viability and the intervention cycles
GE is in a unique position to exploit its eclec- pipeline, but the industry has figured out how that may have to be employed,” he says. “We
tic credentials and to transfer technologies to do just that even with multi-phase flow. So, are getting there. We already have figured
from other industries into subsea produc- how do you expand that model to a system out complex modeling for meteorology and
tion. And, armed with R&D spend that he where you have closed-loop control over fast- oceanography and I know we will be able to
says has tripled over the past 24 months, GE acting components where everything is mov- do it for subsea topologies as well. This is
has no shortage of resources to do just that. ing quickly and dynamically?” he says. not insurmountable.” 

68 Offshore July 2009 • www.offshore-mag.com

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Centrilift Advancing Reservoir Performance

We are full of bright ideas.

Baker Hughes Centrilift is driving artificial lift
technology innovation
New energy frontiers require new ideas. Centrilift collaborates with operators
around the world to constantly expand the operational range of electrical
submersible pumping (ESP) system technology. We are the industry leader in ESP
system deployment for challenging applications, including:
• Deepwater
• Subsea fields
• Extreme temperature steam assisted gravity drainage (SAGD) projects
• Geothermal wells
• Harsh environments

With Centrilift as your partner you are assured

• Customized ESP technology innovations for the broadest range of applications
• Engineering expertise to optimize production and maximize reserve recovery
• Unmatched reliability
• Outstanding local service and support

At Centrilift we ask customers to measure and compare because

there is a difference.
www.bakerhughes.com/centrilift

©2009 Baker Hughes Incorporated. All Rights Reserved. CEN-08-24082.

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FLOWLINES & PIPELINES

Deepwater pipelines –
Taking the challenge to new depths
Martin Connelly 450
Corus Tubes
400

T
350

o ensure continuity of supply, E&P companies have to con- 300

sider opportunities in ever increasing water depths. Assist-

Frequnecy
ing this are new technological advances, including pipeline 250
manufacture and design that increase the technical feasibility
of deepwater developments. 200

Deepwater pipeline challenges 150

Conventional pipeline design, although concerned with many fac-
tors, is dominated generally by the need to withstand an internal pres- 100
sure. The higher the pressure that products can be passed down the
50
line, the higher the flow rate and greater the revenue potential. How-
ever, factors critical for deepwater pipelines become dominated by the 0
need to resist external pressure, particularly during installation. 0.0 0.5 1.0 1.5 2.0 2.5 3.0
Local infield lines, such as subsea umbilicals, risers, and flowlines End ovality (mm)
(SURF) usually are modest challenges as they are small in diameter Distribution curve depicting ovality of Perdido pipe (457 mm x 20.62 mm thick).
and inherently resistant to hydrostatic collapse. In smaller sizes,
these lines generally are produced as seamless pipe which is readily
available and generally economical.
However, deepwater trunklines and long-distance tiebacks pres-
ent a greater challenge. To increase subsea production these lines
tend to be larger in diameter with a thicker pipe wall to withstand the
hydrostatic pressure and bending as it is laid to the seabed.
Typically these lines are often 16 in. to 20 in. (40 cm to 50 cm) in
diameter, which presents a further complication as the pipe sizes lie
at the top end of economical production for seamless (Pilger) pipes.
The Pilger process can produce the thick walled pipe required for • Increase design scope enabling a wider range of deepwater
these developments but often the manufacturing process is slow, the developments.
cost of material high, and the pipe lengths short. As a result, the Det Norske Veritas (DNV) says the acceptability of a pipeline design
most economical method to manufacture these lines is the UOE pro- for a given water depth is determined by means of standard equations
cess. The increasingly stringent industry demands have driven this that measure the relationship between OD, wall thickness, pipe shape,
design toward its practical limits of manufacture and installation. and material compressive strength.
Corus Tubes has responded by manufacturing UOE double sub-
merged arc welded (DSAW) linepipe to the deepest pipelines in the Pipe shape
world. This pipe overcomes significant challenges associated with Finished pipe shape is optimized by balancing the manufacturing
deepwater developments and facilitated a number of pioneering parameters, pipe compression, and expansion. The crimp, U-press,
projects such as Bluestream and Perdido. and O-press combination ensures that the pipe size is controlled, often
In the UOE process, steel plate is pressed into a “U” and then into beyond most offshore specifications. Enhanced pipe “roundness”, wall
an “O” shape and then is expanded circumferentially. Wall thickness thickness, and diameter tolerance removes uncertainty in the design
and diameter requirements for deepwater trunkline pipe continue to be and production stages and allows pipe wall thickness optimization.
challenging for manufacturing economics and installation capabilities.
While few producers manufacture UOE pipes at 16- to 20-in. outside Compressive strength
diameter, this manufacturing method is quicker to market and more cost- Pipe manufactured by the UOE process undergoes various strain
effective than seamless alternatives. Corus Tubes’ process seeks to opti- cycles, both tensile and compressive. The combination of these cy-
mize the design of the material and minimize the wall thickness to: cles affects the overall behavior of the material in compression. This
• Reduce material cost is indicated in the equation given in the offshore design standard
• Reduce welding cost DNV OS F101 by the presence of the Fabrication Factor αfab. For
• Reduce installation time standard UOE processes, the term represents a de-rating of 15% in
• Reduce pipe weight for logistics and submerged pipe weight the compressive strength as a result of the material response to the
considerations strain cycles during forming, known as the Bauschinger Effect.

70 Offshore July 2009 • www.offshore-mag.com

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www.heerema.com

We’re deeply qualified!

We provide over half a century of expertise to the offshore oil and
gas industry. While our reputation as a heavy-lifter continues to stand
tall, our service over the past 15 years has gone deeper and deeper.
Creating solutions for Deepwater exploration and production,
fixed or floating facilities, complex infrastructures or marginal Heerema Marine Contractors
field installations. From conceptual engineering and development, The Netherlands
to transportation and installation. We are deeply qualified. Tel.: +31 [0]71 579 90 00
[email protected]
Does this look like a heavy-lift vessel?
It is one of our multipurpose Deepwater Construction Vessels, with Check our track record at www.heerema.com
a specially developed J-lay tower for Deepwater pipelaying, a mooring
line deployment winch and a subsea lowering system for installation
in water depths up to 3,000 metres. a heerema group company

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FLOWLINES & PIPELINES

aries of deepwater exploration and production, and enhanced un-

derstanding of pipeline capabilities and limits. In 2000, ExxonMobil
used 64 km (40 mi) of line pipe for the Hoover/Diana project which
reached depths of 1,450 m (4,800 ft). This also was the first time that
small diameter pipe from Corus Tubes’ UOE mill in Hartlepool, UK,
was supplied to the deepwater Gulf of Mexico market.
In 2001, Corus Tubes supplied 94 km (45,000 metric tons [49,604
tons]) of three-layer polypropylene coated, high grade, sour service
linepipe and bends for the technically challenging Bluestream proj-
ect which supplies gas from Russia to Turkey under the Black Sea.
Corus also was selected to provide pipe for the deepest section of
the pipeline at 2,150 m (7,054 ft) water depth.
Corus Tubes recently supplied line pipe to the Perdido Norte
project in the Gulf of Mexico. Williams commissioned the produc-
tion of small diameter UOE pipe and approximately 312 km (194 mi)
of uncoated steel line pipe for ultra deepwater depths from 3,500-
8,300 ft (1,067-2,530 m) with a rugged seabed terrain. The pipe,
manufactured to withstand a service rating equivalent to ANSI 1500,
is one of the deepest pipelines in the world.
One section of the pipeline transfers hydrocarbons from the FPS
host in Alaminos Canyon block 857 and terminates in East Breaks
block 994 (78 mi [126 km]). The gas pipeline terminates at Williams
Seahawk pipeline in East Breaks block 599 (106 mi [171 km]). The
18-in. (46-cm) diameter pipe was manufactured in wall thicknesses
ranging from 19.1 mm to 27.0 mm (¾ in. to 1 in.).
This diagram represents the relationship between stress and strain when
a material is placed in tension (top right quadrant) and then into compres-
Further to the experiences on Perdido, Corus has produced a
sion (bottom left quadrant). When material is first placed in tension, such thicker pipe at 18-in. diameter for the Petrobras Tupi project. The
that it is deformed plastically, the yield stress in compression is reduced pipe has a wall thickness of 31.75 mm (1 ¼ in.) and lies in a water
(compare this with the projected compressive strength in the bottom left depth of 2,200 m (7,218 ft) offshore Brazil. While this project is not
quadrant had the pre-tension not been applied). the deepest, it represents a milestone in pipe forming. This is the
thickest UOE pipe ever manufactured at 18-in. diameter (note as the
When material is first placed in tension such that it is deformed diameter of a pipe reduces and thickness increases, the levels of
plastically, the yield stress in compression is reduced. This original- strain and power required to forming it increases).
ly was reported by Bauschinger in 1881. It is relevant to pipe making Tupi is a testimony to the complexity of deepwater pipe design.
because during the forming process the material is placed in tension While collapse at these water depths is a critical design state, there
during expansion. Following this, the material is dispatched for in- also were concerns about corrosion, since the Tupi production has
stallation, where the pipe sees compressive stress from the pressure some small amounts of contaminants in the exportation gas (about
of the seawater. Conventionally, the 15% reduction in compressive 5% CO2 and a very small amount of H2S). Even though the exported
strength compensates for the Bauschinger Effect. gas should be dehydrated, the CO2 raises concerns about pipe cor-
Since the early 1990s, Corus Tubes has observed that the results rosion and is managed by increasing the nominal wall thickness to
it obtained from the forming process often yielded higher compres- account for loss of material during life. At the end of the pipe life it
sive strengths than those obtained from the standard equations. Re- still must withstand the pressure at the seabed even with a reduced
search and process development leads to a greater understanding of wall thickness.
the metallurgical transformations during pipe forming. It is possible The H2S, although not expected in the exported gas, could cause
to reverse the Bauschinger Effect to deliver pipe with compressive cracking to occur in steels where the grain structure and cleanliness
strengths higher than conventionally expected. is not optimized. In addition, high levels of forming strain can exac-
Three things influence the final pipe mechanical properties in erbate the situation. Corus Tubes applied its knowledge of steel pro-
compression: duction and pipe forming to ensure that the plate it procured from

1 Choice of plate feedstock. The strength of the final pipe is a func-

tion of the chemistry and grain structure of the mother plate from
which it is fabricated. All aspects of plate manufacture, the chemis-
Dillinger Hutte and Voest Alpine provided ultimate resistance to H2S
corrosion.
Pipelines in deepwater require the tightest dimensional tolerances
try, rolling schedule as well as cooling rates ensure that the final to maximize resistance to collapse and to maximize girth weld fatigue
plate properties change to give the required pipe characteristics. resistance. Furthermore, pipelines from 16-in. to 28-in. (71-cm) are

2 Choice of mill compression and expansion parameters. By opti-

mizing the various compression and expansion cycles, a set of
manufacturing conditions can be determined to enhance collapse
seen as the future for deepwater export pipeline systems. 

performance to potentially reduce pipe wall thickness in future

deepwater applications.
About the author
3 Controlled low temperature heat treatment. With the correct plate
chemistry it is possible to deliver a lift in compression strength
through the application of a low temperature heat treatment. This fi-
Martin Connelly is responsible for ensuring Corus Tubes’ line pipe can meet the
difficult technical demands. He also oversees the company’s new product and market
development. Connelly joined Corus Group in 1993 after graduating with a first
nal part of the process can be measured and assured only if the cor- class honors degree in Metallurgy and Engineering Material from Strathclyde
rect attention has been paid to the previous manufacturing stages. University. He worked in a number of technical, quality, and operational roles before
A number of groundbreaking projects have pushed the bound- being promoted to product development metallurgist.

72 Offshore July 2009 • www.offshore-mag.com

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

www.offshore-mag.com

July 2009

World Trends and Technology for Offshore Oil and Gas Operations

SWEDEN
Prepared by Offshore Magazine
July 2009

Proponents of efficient technology!

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SWEDEN

Swedish fabricator back from the brink

under Leirvik’s stewardship
Nick Terdre
Contributing Editor

W
hen Emtunga Offshore was declared bankrupt last year,
it seemed like the end of an era. But a significant part of
the accommodation module specialist is back in business
as Leirvik Emtunga LQ, a wholly owned subsidiary of
former rival Leirvik Module Technology of Norway.
“We believe we have the best of the two worlds, and will now set
out to convince our customers of the strengths and advantages we
can offer,” says Christofer Edström, CEO of Leirvik.
Emtunga’s demise was prompted by the failure of Norway’s MPF
Corp., which was building what would have been the world’s first
FPSO with drilling capability. When MPF filed for insolvency pro-
tection in September last year, Emtunga was hard hit, as this was its
only customer at the time.
“Unfortunately we had nothing to fall back on,” says Edström,
who was sales and marketing manager for Emtunga Offshore. “Our
Emtunga Offshore’s last delivery was a replacement living quarters for
owner, 3i, demanded high revenues from us, which meant that we
Shell’s B11 field off Malaysia. Many of the project team now works for
had become too expensive. They weren’t willing to support us until Leirvik Emtunga.
we got a new job.”
In fact a contract was around the corner – the company had a letter of Work already is under way on the first assignment – a mud sys-
intent (LOI) from a North Sea operator for living quarter modules. But tem operators’ cabin ordered by Modular Systems and Solutions for
when 3i applied to put Emtunga under bankruptcy protection, “it was installation on StatoilHydro’s Oseberg C platform.
like taking the wheels off a car,” says Edström. “No one was going to “Leirvik was always a tough competitor, so they could appreciate
give us a new order after that.” The operator then withdrew its LOI. what we achieved historically,” says Edström. In fact, the two compa-
nies now complement each other well, for while Leirvik has special-
Merger discussions ized in tailor-made single-lift modules built of aluminum, Emtunga has
Things might have been different had the owner taken a longer- developed its competence in modularized quarters built of steel.
term view, in Edström’s opinion. He also thinks it did not really under- “Many of our traditional customers prefer local assembly, in which
stand the business – it had acquired Emtunga as part of the Pharmad- case we ship modular sections to local sites anywhere in the world.”
ule group, whose main activity was building modular pharmaceutical The modular sections will be transported from the workshop to the
facilities. In 2007 Emtunga was split out into a separate company. port of Varberg, 70 km (43.5 mi) south of Gothenburg. “We have ex-
Late last year, 3i tried to sell the business, but although talks were tensive experience in the execution model which includes establish-
held with two prospective buyers (one being Leirvik), both subse- ing worksites, managing and supervising local assembly and me-
quently withdrew. So in mid-December the board filed for bankrupt- chanical completion, and commissioning activities,” says Edström.
cy. Activity ceased at the Arendal facility on the bank of the River For customers wanting a single-lift delivery in steel, a project as-
Göte in Gothenburg. sembly worksite will be established in Varberg where the modular
However, Edström and some colleagues decided to contact Leir- sections will be assembled on a base-frame, and mechanical comple-
vik to see if something could be salvaged. Having competed with tion and commissioning will be performed.
Emtunga over the years, Leirvik was fully aware of the Swedish For the time being Leirvik Emtunga expects demand to remain
company’s capability since making its first offshore delivery in 1974, weak, and will focus on holding down costs. But the company has
and its track record worldwide. many bids out, and the outlook is not all bleak - nearly all the projects
A business plan was drawn up, and Emtunga’s name, intellectual discussed last year still are on the table, and few actually canceled,
property rights, archives, databases, and work procedures were Edström says. In some cases the discussions are getting firmer, and
bought from the bankrupt company’s estate. A dozen of the former he is sure some will go ahead in the not too distant future.
management were hired and Leirvik Emtunga was born. Four of the new company’s employees now work at Leirvik’s yard
The new company has returned to its roots in Emtunga, a small in western Norway where they have been slotted into existing proj-
town in central Sweden. Here it has rented a workshop in prem- ects as the two companies work to strengthen their ties. 
ises shared with two other contractors, specialists in welding and
outfitting, which will collaborate on Leirvik Emtunga’s assignments. For more information, contact Christofer Edström, Leirvik Emtunga LQ. Tel +46
Emtunga traditionally subcontracted these activities, so there is no 733 35 15 01, fax +46 +46 512 103 58, [email protected], ___
www.
change from the former modus operandi. emtunga.com

74 Offshore July 2009 • www.offshore-mag.com

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Heavy Offshore Experience

ENGINEERING »FROM FEED TO FIELD «
GVA has been in the offshore industry for more than 30 years. Our design have been proven and tested in all
water and weather conditions. Every single unit GVA have supplied is still in operation today.

GVA is the leading marine and offshore design company for semi-submersibles and other floating units.
Based on the experience of more than 100 projects in more than 20 countries, we deliver trusted, cost-efficient
design solutions.

Our range of products and services includes conceptual designs, basic designs for offshore vessels, engineering
for conversions and upgrades, project management support and research & development services.

In short, we got to the top – and we aim to stay on the top.

Find out more at www.gvaconsultants.com

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SWEDEN

Control room tailored

to individual needs of operators
O
ptimizing control room operator per- conditions,” says Schäring. Actual
formance calls for more than just the operators will participate in these
View of an experimental control room fitted
fitted with an ABB
latest equipment and systems. Ergo- studies, which will run next year. 800xA automation system, in which CGM will investigate
nomic factors are also critical, claims In September and October, when ergonomic factors affecting operator behavior.
Pierre Schäring, marketing manager the new control room has been pre-
of CGM - not only to ensure that operators pared, customers such as StatoilHydro, BP, each operator will be able to control the temper-
stay alert during the long hours of their shift, ExxonMobil, and Shell, as well as Swedish ature at his station to suit individual preferenc-
but also to provide an environment in which authorities and ABB, will be invited to inspect es. In emergency response situations, air will be
they can manage emergency situations. it and to suggest how the control room envi- cooled and more oxygen supplied to assist clear
CGM, which designs control room lay- ronment might be further improved. thinking under stress.
out and furniture, has recently won a SEK Experience and studies have shown the Height-adjustable desks will allow opera-
2.5 million ($335,000) grant from the Swed- importance of the “micro-climate” in which tors to work sitting or standing. Being able to
ish government to co-fund an 18-month operators work, and the experimental control change position is important to maintaining
research project into an operations center room will have new kinds of functions built in alertness. “If we can get operators who are
of the future. CGM has matched this sum, to control these factors. For instance, noise 10% more alert, that will make a big differ-
while ABB has contributed an 800xA auto- from fellow operators is often a distraction, ence in terms of both production and emer-
mation system to the project. so noise-attenuating measures such as sound gency response,” says Schäring. 
An experimental control room is being absorbing materials will be employed.
designed and built at CGM’s headquarters In addition, the audio feed will come through
in Borås in central Sweden. “Our goal is to a speaker designed to steer the sound toward For more information, contact Pierre Schäring, CGM.
do something that hasn’t been done before individual operators as required while minimiz- Tel +46 3322 9500, fax +46 3322 9501, Pierre@cgm.
– to measure operators’ health level in work ing “leakage” to those on either side. Similarly, se, www.cgm.se

Simulator adds realism to helicopter escape routines

I
mproved training in underwater helicopter escape is available copter crash at sea,” says marketing manager Anders Henriksson.
from Scandinavian Safety Training Center (SSTC). Recent inci- The simulator can also be configured in the form of different heli-
dents in the North Sea attest to the importance of such training copter types. It is fitted with emergency lighting around the doors
for offshore personnel and helicopter crews. and windows, allowing escape to be practiced in the dark.
SSTC is the first company in the world to acquire the MWH-6, The first courses with the MWH-6 were due to take place last
the new Multiway HUET, or helicopter underwater escape trainer, month at SSTC’s headquarters outside Gothenburg. Each course
developed by Lamor Subsea of Finland. The HUET is a simulator provides training for up to eight personnel over a period of a day and
which recreates on a reduced scale the passenger cabin of a helicop- a half. It starts with half a day’s theoretical work in the classroom,
ter. Trainees sit inside while it is released into the water and then followed by eight hours of practical training in the water. Trainees
follow the instructions they have been given on pushing out the win- are gradually prepared for the underwater escape exercise, to mini-
dows or doors and making their escape. mize the chances of anyone panicking.
But the MWH-6 has much greater capa- During the exercise two instructors
bilities than its predecessor, the so-called are present in the simulator with the
Dunker simulator. While the Dunker can trainees, while divers follow what is
only be turned left or right in the horizon- happening from outside. If anyone pan-
tal plane, the MWH-6 can turn 360º in both ics, the instructors sound the alarm by
the horizontal and vertical planes. Once pushing a panic button and the simula-
in the water, it can be taken through any tor is lifted out of the water within sec-
sequence of positions, including turning onds.
upside down. And, whereas the Dunker is SSTC is applying for Norwegian Oil
lowered slowly into the water, the MWH-6 Industry Association (OLF) member-
can be dropped in. ship which it can offer courses to Nor-
“This makes the training much more way’s offshore industry. 
realistic, as we can simulate a real heli-
For more information, contact Anders Henriks-
Training in helicopter underwater escape is son, SSTC. Tel +46 76 10 99 273, fax +46 304
more realistic with the new Multiway HUET 562 68, [email protected], www.
__
trainer, says SSTC. sstcab.se
____

76 Offshore July 2009 • www.offshore-mag.com

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________________

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SWEDEN

Separator minimizes bilge water oil content

A
lfa Laval has extended its PureThinking range shore. In addition, these systems must stop at regu-
of separation products for the offshore ship- lar intervals to back-flush the equipment.
ping and marine sectors with a new system for PureBilge, on the other hand, can be operated con-
treating bilge water. tinuously. It is designed for only three maintenance
PureBilge is a high-speed, disc-type centrif- stops a year – two intermediate services and one ma-
ugal separator capable of reducing the oil content of jor service, none lasting for more than a few hours.
bilge water to 5 ppm or less, in line with the highest Other products in the PureThinking range in-
prevailing standards, according to Pauli Kujala, busi- clude PureBallast, the only IMO-certified ballast
ness manager for bilge, marine, and diesel equipment. water treatment system which does not use chemi-
The system incorporates Alfa Laval’s patented XLra- cals. Since it was launched in late 2006, more than
tor laminar flow inlet device, which gently accelerates 60 systems have been sold. PureBallast combines
the bilge water into the separator bowl with a mini- ultraviolet light treatment with a catalyst. This ad-
mum of shearing and foaming. This greatly improves vanced oxidation technology, as Alfa Laval calls it,
separation efficiency by preventing the splitting of oil produces hydroxyl radicals which kill living organ-
drops and the further formation of emulsions. isms in the water.
Products using centrifugal separation perform as Four PureBallast units were sold recently to Ger-
Alfa Laval shows new centrifugal
well in a moving sea environment as in a static land separator to treat bilge water. man yard Volkswerft Stralsund for installation on
setting, says Kujala. In contrast, systems based on anchor-handling tug supply vessels under construc-
settling out solids in a decanter are, by their nature, unsuited to op- tion for Maersk Supply Service. Alfa Laval also sold an ATEX-rated
eration in a ship subject to sea motions. This is not a barrier to such version of the product to a bitumen tanker owner in Sweden, and is
systems achieving IMO-type approval because testing takes place developing a higher rated ATEX version which meets the require-
on land. ments for product and crude tankers. 
There are other drawbacks to static systems, he adds. Filters
become saturated and have to be changed out and disposed of on- For more information, contact Pauli Kujala, Alfa Laval Tumba. Tel +46 530 657
shore, while chemicals create a waste that also needs to be sent to 96, fax: +46 8 530 345 55, [email protected], www.alfalaval.com

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

With nasty corrosive fluids constantly tormenting

his control lines, Ola Hansen is really worried.

Engineered materials.
Sandvik specializes in duplex, super-duplex,
hyper-duplex steels and other advanced
alloys. They are extremely resistant to
corrosion caused by salt and aggressive
chemicals otherwise threatening oil and
gas operations. The remarkable mechanical
strength of these materials also allows
more compact system designs, lighter tube
installations and more versatile wirelines.

If you’re a senior engineer on a busy platform in the North Sea Materials that will resist just about any subsea or downhole torture
– and responsible for subsea and downhole operations – then you imaginable.
know all about the horrors your control lines are exposed to. As the oil and gas industry is up against more hostile operating
Especially at one kilometer below sea level and another kilometer conditions, Sandvik’s cure is more innovative metallurgical tech-
into the ground. nology and more advanced materials.
You’re also fully aware of the nightmare that would result from By continuously developing new, higher grades of these materials,
a sudden failure or other serious malfunction of those mission- we’re able to produce lighter, yet tougher tubes. Tubes that with-
critical lines. stand corrosion, pressure, high temperatures and mechanical stress
Such knowledge tends to make many people rather nervous. better than ever before.
While others stay remarkably assured, never seeming to give their Engineered materials from Sandvik. Possibly your best insurance
installations much of a thought. against bad news.
Their secret? Tubulars made of engineered materials from Sandvik.

| Downhole casing and production tubing | Control lines and chemical injection lines | Umbilical tubing | Riser and flowline piping | Tube and pipe
for oil and gas processing | Fittings and flanges | Sandvik ClikLoc™ connector | Wirelines | Powder metallurgy products | Steels for machining
| Welding products | www.smt.sandvik.com/oilgas

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SWEDEN

Catering equipment, laundry specialist

strengthens presence in Far East

L
oipart, a supplier of food service and trolux Singapore and we will work closely
laundry systems to the offshore and with them on orders that are already in hand,”
marine sectors, moves closer to cus- Vidfar says. Staff for the new office will be re-
tomers in Southeast Asia by opening cruited from Electrolux employees working
an office in Singapore. on marine and offshore projects.
Until now the company has used Elec- Despite the economic downturn, Loipart’s
trolux Singapore as its distributor, which offshore and marine business remains buoy-
meant sourcing the products for its deliv- ant. New, more efficient appliances, such as
eries from Electrolux Europe and reselling the “green and clean” line of dishwashers from
them to Electrolux Singapore. Electrolux, which use less water and electric- ing at Daewoo yard in South Korea
The new presence in Singapore will change ity, also have enhanced the company’s range • Catering and laundry systems for hull
all this. “We’ll take direct charge of sales and of environmentally friendly products. number 1861 for Saipem at Samsung
marketing, which means we can shorten the In recent months, Loipart has landed sev- shipyard in South Korea
lead times to performance,” says Kristian eral new offshore orders in Asia, including: • Catering and laundry systems for hull
Vidfar, Loipart’s sales director, offshore and • Catering and laundry systems for NOR- number 7075 for Gazflot at Samsung
merchant vessels. “We’ll also be able to work SOK jackup rigs with hull numbers B300, shipyard in South Korea.
directly with all yards, ship/offshore owners, B301, and B306 at Keppel FELS yard in • Catering and laundry systems for the
consultants, and partners in Southeast Asia, Singapore GP1-Noble Drillship project, hull number
and be in a position to provide our complete • Laundry systems for hull numbers P2023, M4001, at STX yard in South Korea. 
systems, including design jobs, commission- P2025, P2027, P2028, and P2029 at PPL
ing and after-sales services.” Shipyard in Singapore For more information, contact Kristian Vidfar,
The new office was due to open July 1. • Catering and laundry systems for hull Loipart. Tel +46 322 668385, fax +46 322 637747,
“We have very good cooperation with Elec- numbers 3023 and 3025 for Odfjell Drill- [email protected], www.loipart.com

____________

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April 6 - 8, 2010
Denver, Colorado, USA
OMNI Interlocken

Shales, CBM, and more

Present your ideas and experiences to a knowledgeable and influential
audience. Join PennWell Petroleum Events for this inaugural conference
and exhibition by submitting your abstract today.

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on the Online Abstract Submittal Form.

We are now accepting abstracts in the following technical focus areas:

•Reservoir Management •Risk and Reliability •Well Stimulation
•Well Control •Regulatory Concerns •Project Execution
•Drilling Methods •Recovery Methods and Management
•Field Geology •Coal Bed Methane •Produced Water Handling
•Workforce and •T ight Gas Sands •Geological Methods
Demographics •Field Development •T ight Credit
•Market Dynamics •Frontier Areas •Capital Sources
•Field Economics •Sustainability Issues •Commodity Economics
•Shales •Completion Technologies •Mergers, Acquisitions,
•Transportation and •Technology Qualification and Divestitures
Logistics and Implementation •Legal and Environmental Issues

Please hurry, deadline for submittal is AUGUST 14, 2009!

For more information, please visit

www.RMURconference.com
Owned & Produced By: Flagship Media Sponsors:
®

CALL FOR ABSTRACTS

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BUSINESS BRIEFS

People director of Royal Dutch Shell. She has been Murphy, who has resigned after 10 years with
Willbros Group has elected Robert R. with Shell for 29 years. the company.
Harl and Edward J. DiPaolo to its board of CygNet Software has appointed Tom Ordes Noble Denton has ap-
directors. DiPaolo fills the position of Gerald as director of its pipeline market. Ordes has pointed Graeme Reid as
J. Maier, who has retired from his position as 28 years of experience in the oil and gas enter- regional MD for the UK and
director. Harl was re-elected to the board. prise automation market. Kazakhstan.
Willbros Group has named Steve W. Ikon Science has appointed Dr. Angus The T&T Bisso Response
Shores as VP of its upstream business seg- McCoss as a non-executive director. McCoss, Network has named Mir-
ment. a geologist, is exploration director of Tullow ian Castillo as operations
Hess Corp. has appointed Michael R. Oil Plc. assistant for its salvage and Reid
Turner as VP for global production with Alliance Wood Group Engineering has ap- emergency response group.
responsibility for Europe and Asia. Turner pointed Edmund-Hugo Lunde as COO and Bisso Marine has appoint-
will succeed George Sandison, who becomes Dan Dutherage as VP of business develop- ed JoAnn Henzel as project
Sr. VP for global E&P services, with respon- ment and marketing. manager for the company’s
sibility for global drilling, supply chain, and Electromagnetic Geoservices ASA has ap- salvage and emergency
environment, health and safety, and social pointed Roar Bekker as CEO. response team.
responsibility. Oil & Gas UK appointed Gerry Borghesi, ABS has made the fol-
Knight Oil Tools has named Diana Gary joint interest manager of UK/Netherlands at lowing appointments in its
as special projects manager for accounting ExxonMobil, as a major oil companies’ repre- Europe and Pacific divi- Castillo
and finance. Gary has more than 20 years sentative. The company also appointed Mark sions: William J. Sember,
of public accounting experience in various McAllister, Fairfield Energy’s CEO, to a place VP of global marketing;
disciplines with a concentration in the oil and reserved for a small production operator. Mark McGrath, president
gas industry. Eliokem has appointed and COO of the company’s
The Letton-Hall Group has added Eric Andrea Valenti as global Pacific division; Eric Kleess,
Toskey to its team of engineers. Toskey’s oilfield chemicals and coat- Sr. VP of operations; Stephen
technical knowledge includes multiphase flow ings business manager. He Auger, VP of the Northern
measurement and allocation, well testing and will continue his position as Pacific region; Rick Pride,
Henzel
analysis, production diag- global marketing manager regional VP Middle East;
nostics, and technology and for oilfield chemicals. Brad Achorn, Denmark
product development. Wood Group has ap- Valenti
country manager; Christopher Perrocco,
Enterprise Engineering pointed Cinzia De Santis as Malaysia country manager; Steve Hryshchy-
Services has appointed group head of health, safety, shyn, VP of quality; Mark Corsetti, Taiwan
Andrew Scott as MD. and the environment, and Phil Ley as group country manager; Todd Grove, president and
Fred P. Hochberg has head of safety. COO of ABS Europe Ltd.
been sworn in as the 23rd Scott
Transocean has appointed Ricardo H. Freddy Gebhardt was
president of the Export- Rosa as Sr. VP and CFO of Transocean. named president of Wild Well
Import Bank of the US, the Ausclad Group has Control. Since 2005, Gebhardt
nation’s official export credit agency. appointed Paola Webb as has served as the company’s
GlobaLogix has appointed Horacio Tinoco group business improve- executive VP and GM.
as director of sales for Latin America. Tinoco ment/quality manager. Webb Prospect has appointed
was previously VP of business plans and has more than 12 years of ex- Lisa Wilson as VP of its USA
controls at Implicit Solutions Group, where he perience in the engineering business. From her base in Gebhardt
designed and implemented a channel partner and construction industry Houston, Wilson will drive
program for Latin America. including management posi- Webb business acquisitions across
PPG protective and marine coatings has tions with the Halliburton the Gulf of Mexico region
appointed Michael T. Hartings as GM for the Group and Clough Ltd. and the US.
US and Canada. Hartings was previously GM Foster Wheeler has appointed Roberto Marsh has appointed
for PPG coatings Malaysia, where he led the Penno as MD of global sales, marketing, Nabil Khawaja to lead its
automotive and industrial coatings businesses and strategic planning. Penno will succeed Global Energy Practice’s
in Southeast Asia. Giuseppe Bonadies, who will retire after 45 London-based offshore con-
Khawaja
Trelleborg CRP has appointed Brian Mc- years with the company. struction team.
Sharry president. McSharry was previously Victaulic has appointed Narong Boonyasaquan
with Ammeraal Beltech. He has engineering Grady Wilkerson as VP has retired as MD of CUEL Ltd. Boonyasaquan
and manufacturing experience across aero- of sales. Wilkerson was became CUEL’s MD in April 2004.
space, automotive, optical, and retail business- previously a US divisional RWE Dea Egypt has appointed Hans-
es, as well as the oil and gas industry. manager for the company. He Hermann Ecke as GM. Ecke succeeds Hans-
Royal Dutch Shell has appointed Pe- has worked for Victaulic for Hermann Andreae.
ter Voser as CEO. The company has also almost 30 years. Expro has appointed Gavin Prise as CEO.
Wilkerson
appointed Marvin Odum as director for Rodney Gray will serve He replaces Graeme Coutts, who has been
Upstream Americas, Malcolm Brinded as as the CFO and executive VP named executive chairman. Peter Goode,
executive director of Upstream International, of Cobalt International Energy, L.P. Gray was who was appointed non-executive chairman
and Matthias Bichsel as director of Projects previously VP and CFO of Colonial Pipeline. for the initial phase of the privatization of
and Technology. Venture Production has appointed Expro, will step down from this role, but will
Linda Cook has resigned as executive Jonathan Roger as COO. He replaces Jon continue to participate on the board as a non-

82 Offshore July 2009 • www.offshore-mag.com

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BUSINESS BRIEFS

executive director. opened a North Caspian service center in sioning services. Initially targeted at the
TAM International has appointed John Atyrau, Kazakhstan. US market, Proserv Energy will take over
Robinson as director of manufacturing. Rob- Premier Oil has issued a tender for a rig offshore assets earmarked for decommission-
inson is tasked with implementing manufac- to drill development and exploration wells on ing, assuming the risks and responsibilities of
turing programs, setting policy, and oversee- its West Lobe and Anoa Deep fields offshore planning, project managing, budgeting, and
ing strategic planning for the departments of Indonesia. execution.
Quality, IT, Purchasing, and Manufacturing. Premier Oil expects to complete its $505 RWE Dea AG has agreed with Fairfield
National Oilwell Varco has appointed Hege million acquisition of Oilexco North Sea Ltd. Energy to farm-in on the undeveloped Clipper
Kverneland as corporate VP and chief technol- (ONSL) by the end of May. Production from South gas field in the southern British North
ogy officer. Kverneland succeeds Bob Bloom the ONSL fields in the UK sector is currently Sea.
who is retiring after 40 years with the company. around 13,000 boe/d, and the process of as- J P Kenny is to carry out front-end
similating the ONSL operations into Premier engineering design of the pipeline, umbilicals,
Company News is under way. risers, and flowlines for the INPEX-operated
Gulf Technical and Safety Training Total E&P UK has started basic engineer- Ichthys LNG project in Western Australia’s
Centre (GTSC) has launched an operational ing studies for its Laggan-Tormore project Browse basin. MCS is designing the dynamic
training well at its Mussaffah, Abu Dhabi base, west of Shetland. The Laggan and Tormore riser system.
the first to be constructed in the Middle East. fields provide one of the UK’s largest undevel- AMEC has selected Aker Solutions as a
Total E&P UK has awarded Bristow He- oped gas resources. subcontractor for the offshore facilities front-end
licopters a contract to supply shuttle services Drydocks World has added two new engineering and design (FEED) contract for the
between the Safe CaledoniaI flotel and the berths to its facility, increasing its conversion Ichthys project off northwestern Australia.
Franklin platform in the central North Sea. capacity. The new FPSO quay is on the lee Endeavour International Corp. has
Husky Oil China has awarded WorleyPar- face of the main breakwater, with a total length closed the sale of its Norwegian subsidiary,
sons a FEED contract for the Liwan 3-1 area of 668 m (2,191 ft) and a dredged depth of Endeavour Energy Norge, to VNG-Verbund-
development in the South China Sea. –11m DMD (Chart Datum) over a length of netz Gas AG for $150 million.
Apache North Sea has awarded Ener- 630 m (2,067 ft). Petronas Carigali will exercise its
Mech a three-year, $9.3-million crane and FoundOcean has formed a joint venture purchase option over the FSO Oguzhan and
maintenance services contract. The scope cov- with Process Measurement and Control mobile offshore production unit operating
ers all of Apache’s assets in the Forties field in (PMAC) Systems, an Aberdeen-based compa- offshore Turkmenistan.
the UK North Sea. ny involved in cathodic protection inspection. Venture Production’s capital program for
Oranje-Nassau has signed an agreement Agip KCO has awarded Aker Solutions this year is focused on exploration drilling to
to sell its oil and gas activities to a Dyas-led and Saipem two contracts for hook-up work prove up new gas reserves in the UK southern
consortium composed of ONH, Dyas UK, and on the Kashagan field in the Caspian Sea. One North Sea.
a Japanese international trading and invest- contract includes the offshore hook-up, com- Egypt’s Petroleum Ministry and Eni have
ment firm. The net price for the transaction is missioning assistance, onshore pre-fabrica- agreed on new joint initiatives to develop
$866 million. tion, all logistic support, and inshore hook-up hydrocarbon reserves. These include an ex-
Ausclad Group has acquired Perth-based work for Phase I development of the field. The tension of the license for the Belayim oil field
Modern Access Services (MAS) for $12 other contract includes engineering and job in the Gulf of Suez, which Eni operates, for a
million. MAS provides access services for carding for prefabrication and installation and further 10 years through 2030.
construction and maintenance programs on vessels preparation. Delta Engineering Corp. will now be
major projects in the resources, oil and gas, Norwest has agreed to sell its North Sea known as Delcor USA.
and industrial sectors. assets to Silverstone Energy for $1.8 million. Electromagnetic Geoservices’ vessel
Schlumberger has acquired Techsia SA, a The assets comprise a 25% interest in the fleet will be reduced temporarily from three
supplier of petrophysical software. Techsia will Cobra gas discovery and Norwest’s interest to two vessels. These actions will result in 29
continue to operate under its own name. in several exploration licenses in the Inner temporary layoffs, 28 redundancies, and four
ASCO Freight Management has opened a Moray Firth. consultancy contracts being terminated, the
new base in Singapore. Noble Denton has moved into a new office company says.
Petrobras Oil and Gas has agreed to in Rio de Janeiro, Brazil. The office provides Sinopec International Petroleum Explo-
farm into exploration block 2714A offshore engineering and consultancy for FPSOs/ ration and Production Corp. has agreed to
southern Namibia. The block is one of eight FPUs, subsea transportation and installation, acquire all of the outstanding common shares
operated off Namibia by Chariot Oil & Gas, marine surveying, risk and project manage- of Addax Petroleum for $7.2 billion. The
and covers an area of 5,481 sq km (2,116 sq ment, marine operations, and HSE. acquisition is subject to government approval.
mi) in the southern Orange basin. Eni Norge is applying for concession to Canadian law firm Fasken Martineau is
Faroe Petroleum is exchanging various construct and operate an electric cable link advising Addax in the transaction
field interests in the Norwegian North Sea between mainland Norway and the Goliat field Heerema Marine Contractors (HMC) has
with DONG Energy E&P Norge. DONG will production facility in the Barents Sea. begun construction on a marine supply base in
take Faroe’s 10% stake in the Trym gas field, Aker has purchased 11,797,752 shares (18% Porto Amboim, Angola. The base is expected
currently seeking development approval. In stake) in Det norske oljeselskap ASA (Det to become operational in June 2010 and will
exchange, Faroe gains 9.3% and 1.86% shares norske). support the offshore transport and installation
respectively in the producing Glitne and Chevron Energy Technology Co. has con- activities for the block 31 development and
Enoch oil fields. tracted WorleyParsonsIntecSea for facilities other offshore energy projects in the future,
The Ministry of Petroleum and Energy (MPE) engineering services for the current phase of the company says. The base will consist of a
has pre-qualified Spring Energy as an operator the Rosebank project. quay, which will be protected by a breakwa-
on the Norwegian continental shelf. Proserv Offshore has launched Proserv ter. It will also be equipped with two crawler
Invensys Process Systems (IPS) has Energy, a new division offering decommis- cranes, four wheel loaders, and two forklifts.

www.offshore-mag.com • July 2009 Offshore 83

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

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ADVERTISERS INDEX

A N
SALES OFFICES API (American Petroleum Institute).....21 National Oilwell Varco ......................9, 23
PENNWELL PETROLEUM GROUP www.api.org www.nov.com
1455 West Loop South, Suite 400, Houston, TX 77027
PHONE +1 713 621 9720 • FAX +1 713 963 6228
David Davis (Worldwide Sales Manager) B O
[email protected] Baker Hughes Incorporated...........25, 69 ORR Safety Corporation ......................57
Bailey Simpson (Regional Sales Manager) www.bakerhughesdirect.com www.orrsafety.com/kong
[email protected] Bisso Marine .........................................10
Mona El-Khelaly (Advertising Services) www.bissomarine.com
[email protected]
Glenda Harp (Classified Sales) [email protected]
BJ Services. ..........................................15 P
www.bjservices.com PennWell
Boots & Coots.......................................13 Deep Offshore Technology ....................... 38
GREATER HOUSTON AREA, TX
www.boots-coots.com www.dotinternational.net
David Davis [email protected]
Deep Offshore Technology International
USA • CANADA Monaco ....................................................... 86
Bailey Simpson [email protected] C www.deepoffshoretechnology.com
Cameron ................................................53 Deepwater Operations Conference
SCANDINAVIA •THE NETHERLANDS • www.c-a-m.com/evo and Exhibition ........................................... 40
MIDDLE EAST CapRock Communications. ...................3 www.deepwateroperations.com
11 Avenue du Marechal Leclerc www.CapRock.com Offshore Middle East ................................. 85
61320 Carrouges, France www.offshoremiddleeast.com
Clover Tool Company............................64
PHONE +33 2332 82584 • FAX +33 2332 74491
David Betham-Rogers [email protected]
www.clovertool.com OGJ Research ............................................ 59
www.ogjresearch.com
UNITED KINGDOM OGMT North America ................................ 65
188 Gordon Avenue D www.ogmtna.com
Camberley, United Kingdom GU15 2NT DSM Dyneema B.V..... ...........................63 Rocky Mountain Unconventional
PHONE +44 (0) 7545 829 891 • FAX +44 (0) 1992 656 700 www.lesspressureoffshore.com Resources .................................................. 81
Stephen Wilding [email protected] www.RMURconference.com
Unconventional Gas International............ 49
FRANCE • BELGIUM • PORTUGAL • F www.unconventionalgas.net
SPAIN • SOUTH SWITZERLAND • MONACO Fluor Corporation...... ...........................37 Pride International, Inc.. .......................55
• NORTH AFRICA www.flour.com/offshore www.pride.com
Prominter FMCTI.................................................... C4
8 allée des Hérons, 78400 Chatou, France www.fmctechnologies.com
PHONE +33 (0) 1 3071 1224 • FAX +33 (0) 1 3071 1119
Daniel Bernard [email protected] S
Saab Seaeye Ltd ...................................33
GERMANY • NORTH SWITZERLAND • G www.seaeye.com
AUSTRIA • EASTERN EUROPE GE Oil & Gas ...........................................1 Sandvik Materials Technology .............79
RUSSIA • FORMER SOVIET UNION • BALTIC ge.com/oilandgas www.smt.sandvik.com/oilgas
• EURASIA GVA Consultants AB ............................75 ShawCor ................................................19
Sicking Industrial Marketing, Kurt-Schumacher-Str. 16 www.gvaconsultants.com www.shawcor.com
59872 Freienohl, Germany Smith Berger Marine, Incorporated .....61
PHONE +49 (0) 2903 3385 70 • FAX +49 (0) 2903 3385 82 www.smithberger.com
Andreas Sicking [email protected] H SPE Offshore Europe 2009.... ..............45
Heerema Marine Contractors ...............71 www.offshore-europe.co.uk
ITALY www.heerema.com
SILVERA MEDIAREP SPT Energy Group ................................12
Viale Monza, 24 - 20127 Milano, Italy www.spt-energy.com
PHONE +39 (02) 28 46716 • FAX +39 (02) 28 93849 StatOil Hydro..... ......................................7
Paolo Silvera [email protected] I DoMoreHere.com
ION Geophysical Corporation .............31
iongeo.com/SPANS Strategic Marine..... ...............................59
BRAZIL / SOUTH AMERICA www.strategicmarine.com
Grupo Expetro/SMARTPETRO, Ave. Erasmo ITT Goulds Pumps ................................17
Braga 227, 11th floor ResourceITT.com Swagelok..... .......................................... 11
Rio de Janeiro RJ 20024-900, BRAZIL
www.swagelok.com
PHONE +55 (21) 2533 5703 or +55 (21) 3084 5384
FAX +55 (21) 2533 4593 K
[email protected], Url [email protected] Keppel Offshore & Marine Ltd... ..........35 T
Marcia Fialho marcia.fi[email protected] www.keppelom.com Transocean.. ......................................... C2
www.deepwater.com
JAPAN
Kohlswa Gjuteri.....................................78
e. x. press Co., Ltd. www.kohlswagjuteri.se
Hirakawacho TEC Bldg., 2-11-11,Hirakawa-cho U
Chiyoda-Ku, Tokyo 102-0093, Japan Universal Corrosion Specialist..............4
PHONE +81 3 3556 1575 • FAX +81 3 3556 1576 L www.universalcorrosionspecialist.com
Manami Konishi [email protected] L&M Radiator.........................................14
mesabi.com
SINGAPORE LAGCOE 2009... ....................................27
19 Tanglin Road #09-07 Tanglin Shopping Center LAGCOE.com V
Singapore 247909 Volvo Penta ...........................................80
Lincoln Electric... ..................................47 www.volvopenta.com
PHONE +65 6 737 2356 • FAX +65 6 734 0655 www.lincolnelectric.com
Michael Yee [email protected]
Loipart AB... ..........................................77
INDIA www.loipart.com W
Interads Ltd., A-113, Shivalik, New Delhi 110 017 LTI Offshore Products... ...................... C3 Weatherford.............................................5
PHONE +91 11 628 3018 • FAX +91 11 622 8928 lti-offshore.com www.weatherford.com
Rajan Sharma [email protected] Wellstream International Ltd................29
www.wellstream.com
NIGERIA/WEST AFRICA M World Energy Congress 2010...............42
Flat 8, 3rd floor (Oluwatobi House) M-I SWACO ............................................67
71 Allen Ave, Ikeja, Lagos, Nigeria
www.wecmontreal2010.com
www.miswaco.com
PHONE +234 805 687 2630 or +234 802 223 2864 Mustang Engineering ............... 39, 41, 43 The index of page numbers is provided
Dele Olaoye [email protected] www.mustangeng.com as a service. The publisher does not as-
sume any liability for error or omission.

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BEYOND THE HORIZON

A paradox in high technology:

Working all the issues,
or the important issues?
Long
ng ago, oil and gas industry decision makers did not have high- An alternative approach
nology analytical tools for creating detailed technical models
technology To help remedy this situation, offshore exploration and produc-
before making decisions. Strategic decisions were made using more tion teams can consider an alternative approach to addressing these
qualitative metrics, experience and hunches. “Strategy” had a great and other challenges. For example, it is likely to be much more
emphasis in those days. beneficial to ask important strategic questions early on and to use
Recently, these analytical tools have advanced to a great extent, a high-level simulation of the whole business opportunity prior to
leading to a scenario in which sophisticated and highly detailed extensive, detailed technical modeling.
technical modeling tends to occur very early in a project life cycle Here are some typical questions to consider early in a project’s
and well before primary strategic questions are properly consid- life cycle:
ered. Analytical tools that promised to help executives make better • What is the business situation and fit with company strategy?
decisions are in many cases slowing down the process without im- • What must be true (technical or otherwise) for this project to
proving decision making. meet objectives?
The following are challenges that Caesar Systems has observed • Who are the major stakeholders; which ones are important and
in exploration and production decision making: which ones have the most power?
• First, detailed technical modeling of hydrocarbon projects may • What are the technical issues that have high impact on risk/
take a very long time at great cost. When performed prior to opportunity?
making preliminary scoping decisions about a prospect, much • What are the major risks, and what decisions can be made to
of the time and money spent diving down into granular detail is manage these?
misdirected and eventually lost. • What is the fiscal arrangement? (Perhaps some costs in produc-
• Second, organizations with multi-disciplinary teams (whether in tion sharing arrangements are not a concern)
silos or not) run the risk of working every issue with the same • What are the business drivers of key partners, competitors,
technical rigor at the same time. Minor value and risk drivers host governments, etc.? (Is the motivation competitive or col-
are fine-tuned with the same emphasis as major success driv- laborative?)
ers. This integrative business simulation approach, early in the project
• Finally, overuse of technical analysis too early in the evaluation life cycle, identifies the most important success drivers, which can
process leads teams to anchor on a particular approach without in turn direct resources to the most pressing technical or commer-
seeing the broader perspectives from all stakeholders. Misdi- cial issues. This allows an evaluation team to focus its effort and aim
rected emphasis in the early phases of a project makes it diffi- its technical expertise on the problems with the greatest risk and
cult to ask the right questions at the right time -- which, in turn, value impact, and indeed work on a greater number of opportunities
inhibits decision makers’ ability to position their companies for with more time to generate creative strategies.
the best value and results. Important success factors frequently Does this appear counterintuitive in a technology-driven indus-
overlooked include corporate strategy, stakeholders’ interests, try? That business strategy can focus technical analysis rather than
non-technical risks such as political and partner issues, fiscal the other way around? Some say this is “working the problem back-
arrangements, and more. ward.” At Caesar Systems, our findings are that the value to oil and
In offshore projects, many factors contribute to the complexity gas companies of this alternative approach is high in terms of iden-
that tends to make this problem worse, including health, safety, tifying and affecting key value drivers, managing risks, and improv-
and the environment (HSE), and political and commercial factors ing allocation of scarce resources.
as well as technical ones. As such, the problem of over-emphasized
technical analysis too early in the evaluation process is an executive Donald Zmick
management issue rather than a technical one. Leadership at the VP, Client Service
executive level will be required to solve this problem. Caesar Systems LLC

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 Eldon Ball at [email protected].

88 Offshore July 2009 • www.offshore-mag.com

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LEGS OF STEEL.

SOUL OF A SURVIVOR.
In the same manner as our rigs, which are built to withstand the most

demanding forces of nature, our company is built to support our industry

during the toughest times. It’s during challenging times like these that

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more durable, and more productive jack-up rigs. Now, as always, you can

count on LTI Offshore Products. Strong rigs. Stronger company.

903-237-7500 • lti-offshore.com

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It’s not just one thing. It’s everything together: subsea systems and technology enhancements
that enable faster installation, maximum reliability and lowest life-of-field costs. Experienced
teams who partner with you to fast track your project. And subsea processing and boosting
technologies that increase hydrocarbon production to make fields more economical.
It’s everything you need for a successful subsea project. All together.

We put you first.

And keep you ahead.
www.fmctechnologies.com

© 2009 FMC Technologies. All rights reserved.

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