oe_M_4_NP_Cov 29/4/09 7:08 pm Page 1

REQUIRED READING FOR THE GLOBAL OIL & GAS INDUSTRY SINCE 1975

Slimbore sideline
MAY 2009

for upgraded Q
Commercial FLNG
in the crosshairs
Minis prove
OFFSHORE ENGINEER their mettle
www.offshore-engineer.com

PLUS: HOW PROTECTED POSIDONIA SEAGRASS DICTATED THE GALSI GAS LINE’S ‘RATHER STRANGE ROUTE’
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oe_M_4_p003_contents 29/4/09 7:23 pm Page 3

MAY 2009
COVER
Outfitted with enhanced video and sonar technology,
micro and mini ROVs are finding a niche in the
offshore oil and gas industry. Proponents say the
pint-sized swimmers, given their limits, can perform
a lot of tasks more safely and economically when used
in place of or alongside work class ROVs or divers.
And in an era of heightened cost-consciousness,
operators are paying heed (see page 44).
PHOTO: COURTESY VIDEORAY

Volume 34 Number 5

contents 11-16 DIGEST North Sea helicopters under the

microscope; drilling Dzata; Santos
pre-salt shines; Western Gulf up for lease;
Cascade on track for mid-2010 flows;
FPSO fires halt Vincent and stall Van
Gogh; ESPs set for Statfjord;
Newfoundland’s Mizzen marker; Anglo-
German axis eyes Americas growth; Asia
leads floaters flurry; Jacky joins the club.

19-22 ANALYSIS Operators and drilling contractors alike

are counting on deepwater to pull them
through tough economic times ahead.
Russell McCulley gets a look at the rig stats.
Plus, on the recruitment and training
http://

front, a former BP deputy CEO calls for

calm and commonsense.

24-26 G&G NOTEBOOK Seismic business

was never going to
be immune from a
recession this deep.
Andrew McBarnet
detects some
companies are more
troubled than others. Also this month: the
latest stirrings in the EM saga.

29/30 THE Q CONTINUUM The Helix-owned Q4000 has long focused

on well intervention and construction
work, but a recent upgrade has opened up
OE is now available in new possibilities for this niche vessel.
digital format replicating Jennifer Pallanich gets an early look at the
the printed version with DP3 semi's new slimbore drilling
many added features and package.
benefits including:
> early issue delivery 32-37 BIT PARTS Continuing in the drilling hardware vein,
> full search Jennifer Pallanich traces the evolution of the
> archiving state-of-the-art bits designed for drilling
> PDF download in today’s punishing and costly offshore
> website environment and checks out how the top
> email links drill bit makers plan to keep their cutting
http://interactive.offshore-engineer.com edge.

w w w . o f f s h o r e - e n g i n e e r. c o m OFFSHORE ENGINEER | may 2009 3

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 oe_M_4_p006_contents 29/4/09 7:24 pm Page 6

39-42 GALSI GEARING Plans to lay the challenging new Galsi gas
pipeline between Algeria and Italy, in up
to 2880m of water, were among the
regional talking points at the recent
Offshore Mediterranean Conference
(OMC) in Ravenna, Italy. John Sheehan
reviews this and other conference
highlights.

44-46 SMALL CHANGE Sometimes smaller is

better: so say the
sellers of micro and
mini ROV services,
who maintain that the
smaller machines can do many inspection
and light intervention jobs faster and
cheaper than their work class cousins.
Russell McCulley reports.

49/50 FLNG FILES With the oil & gas

industry getting
increasingly
comfortable with the
concept, floating LNG
is now coming into its own. Meg Chesshyre
reviews some of the latest FLNG
developments.

53-57 CRUISE CONTROL With back orders

aplenty, Asia Pacific
shipyards remain busy
but warning signs of a
slowing market are all
around. John Mueller checks the pulse of
the region’s rig and vessel builders.

58/59 KRAKEN AWAKES The first of

Seajacks’new ‘fit-for-
purpose’ jackup units
targeting the shallow-
water IMR and wind
turbine installation markets is heading
for its first assignment offshore Canada.
Meg Chesshyre reports.

61-65 MOORING MATTERS First Subsea’s Brian

Green discusses the
need for mooring
systems that better
reflect the challenges
of deepwater installation. OE’s Russell
McCulley looks at SeaTrepid’s innovative
‘Creeper’ mooring and riser inspection
vehicle, due to undergo extensive trials
this summer.

82 EBB & FLOW Europe’s $10 billion

Nabucco pipeline story
reads like a Bourne-
style political thriller.
Co-columnists Prof
Michael J Economides and Peter Glover thumb
through some of the racier chapters.

REGULAR FEATURES OE contacts (8), Contracts (16), Offshore

data (66), Products in action (68-72), Firms
and faces (73/74), Diary (76), Display
advertisers index (78), Bookshop (79-81).

OE_M_4_SLB_V.indd 1 29/4/09 18:10:04

OE_M_4_WFD_FP.indd 1 24/4/09 17:41:45
oe_M_4_NP_p008_contacts 28/4/09 5:25 pm Page 8

CONTACTS

Head office
Atlantic Communications,
1635 W Alabama,
Houston, Texas 77006-4101, USA
Tel: +1 713 529 1616
Fax: +1 713 831 1778
email: [email protected]
August 4-6, 2009 Offshore Engineer is published monthly by Atlantic Communications LLC, a company
Moody Gardens Hotel & Convention Center wholly owned by IEI, Houston. AtCom also publishes Asian Oil & Gas, the Gulf Coast
Oil Directory, the Houston Texas Oil Directory, the PetroProcess HSE Directory
Galveston, Texas and the web-based industry news service OilOnline.com

Discover 09
Editorial Publishing & marketing

your
Advisory
Board
Editor-in-chief: Chairman:

options. . .
Chairman
Brian Skeels David Morgan Shaun Wymes
Emerging Technologies Director – Atlantic Communications, [email protected]
FMC Technologies
Co-chairman
The Arena, Stockley Park,
at the Mike Bednarz
Sr Intervention Engineer – BP
Uxbridge, Middlesex Publisher:
Deepwater Intervention Forum UB11 1AA, UK Rob Garza
Bob Curtis,
RIT Superintendent / Tel: +44 020 8899 1765 tel: +1 713 831 1768
The 5th annual Deepwater Intervention Forum Program Manager i-Tech,
a Subsea 7 company
[email protected] [email protected]
will be held at the Moody Gardens Hotel and Dana Witt,
Convention Center in Galveston, Texas, Senior Drilling Advisor – Chevron
Conferences & events
Joseph Levine,
August 4-6, 2009. Key operators and service Senior Engineer, Office of Offshore Events manager:
industry personnel will discuss and share Regulatory Programs – MMS
John Cromb,
US editor: Ray Vanegas
experiences/challenges within the deepwater Completion Engineer – Anadarko Jennifer Pallanich tel: +1 713 874 2207
intervention market. With the continuing growth Perry Courville,
Atlantic Communications, [email protected]
CT and HWO Product Manager –
in subsea tieback developments, finding ways Halliburton 1635 W Alabama,
to avoid or reduce workover and thru-tubing Colin Johnston,
Senior Well Operations Engineer – Houston, Texas 77006-4101, USA offshore-engineer.com
well intervention costs is becoming critical for WellOps
tel: +1 713 831 1780 Editor:
operators with mature assets. Forum attendees Joel Rignol,
Completion & Well Works Team [email protected] James W Self
will be able to discover the latest systems and Leader – Total E&P USA
tel: +1 713 831 1769
technologies available. Learn from recent Ray Stawaisz,
intervention case studies, and network
Deepwater Intervention Manager, Gulf of Mexico editor: [email protected]
GOM – Chevron
with industry experts working on Lynard Carter,
Russell McCulley
deepwater interventions worldwide.
Petroleum Engineer – MMS tel: +1 713 831 1773 Repro
John Bousa,
DMT ROV & Diving Sales – DMT [email protected] Screaming Colour, London, UK
The 2009 Technical Advisory Board is chaired Brent Boyce,
Subsea Installation Manager
by Brian Skeels of FMC Technologies and co- InterMoor, Inc. Print
chaired by Mike Bednarz of BP. The Advisory Mark DeRouen, RR Donnelley & Sons, Pontiac,
Deepwater Production Engineer –
Board is made up almost exclusively of Mariner Energy, Inc. Asia-Pacific editor: Illinois, US
operators and is currently preparing a two- Robert Corkren,
Sales & Marketing Manager i-Tech,
John Mueller
day program of case studies and expert a Subsea 7 company [email protected] Subscriptions
Larry Klentz, To subscribe or note a change of address
presentations on this well-timed topic. Project Manager Riser and please either:
Attendees to this forum will participate in
Tooling Division – Saipem America Geosciences editor: email: [email protected]
Nick Alvarado, visit: www.offshore-engineer.com
discussions centering on new tools, Subsea Engineer – Fugro Andrew McBarnet
digital edition:
techniques, and best practices
Andy Henderson, [email protected] http://interactive.offshore-engineer.com
Manager Subsea Tiebacks –
associated with well interventions. Oceaneering fax: +1 713 831 1778
Colin Morris, Contributing editor: Rates $160/year – non-qualified requests.
Subsea Intervention Theme
There will also be a golf tournament on Tuesday, Leader – Shell Professor Michael J Economides
August 4, 2009. Come network, learn, and Terry Lease,
General Manager –
University of Houston Circulation
relax before the forum kicks off that evening. VMAX Technologies, Inc. Inquiries about back issues or delivery
Bjorn Ronning, problems should be directed to our reader
Topics to be discussed include: Senior Operations service website
Engineer – Well Ops, Helix ESG Art www.offshore-engineer.com
– Operator View of the Intervention Market Design and layout:
– Update on Popular Intervention Systems This interactive event is designed Ian McInnes
to maximize the exchange of
– New Challenges in Rig Based Interventions ideas among delegates and [email protected]
presenters. This is achieved by
– Pipeline and Umbilical Interventions eliminating formal, peer-reviewed
papers in favor of brief technical
– Storm Related Interventions and presentations followed by an
the Lessons Learned extended Q&A period. Editorial advisors
– Panel Discussions based on
No proceedings will be published,
Ian Ball, Subsea Domain; John Chianis, Houston US POSTAL INFORMATION:
and the press will not be invited Offshore Engineer (USPS 017-058);
What the Audience Wants to Know to attend.
Offshore Engineering; Susan Cunningham,
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For information on attending this event, sponsorship and exhibit opportunities or general and additional offices. Postmaster: send
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www.deepwaterintervention.com Brian Skeels, FMC Technologies; St, Houston, TX 77006-4101.
Rick Von Flatern, Schlumberger

8 OFFSHORE ENGINEER | may 2009 w w w . o f f s h o r e - e n g i n e e r. c o m

OE_M_4_DIF_HPV.indd 1 28/4/09 12:35:23

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19380-10 Offshore Engineer ad.indd 1 13/03/2009 14:02
oe_M_4_p011_news 28/4/09 6:29 pm Page 11

DIGEST
PSN’s Bob Keiller is chairing
the UK’s Helicopter Accident
Issues Task Group.

North Sea team

targets helicopter
focal point for sharing
information, advice and
digest
learning across the industry
safety issues and with other stakeholders
on matters arising from the
A cross-industry task group Flight 85N tragedy on 1 April
has been established by Oil & and previous helicopter
Gas UK to address helicopter accidents. It will assist with
safety issues arising from last the implementation of any
month’s tragic crash of a Bond recommendations from the UK
Super Puma bringing workers Air Accident Investigation
back from BP’s Miller Branch (AAIB) inquiries, as
platform, with the death of all well as defining policies and
16 on board. It occurred just practices to be recommended
six weeks after the rescue of to the board of Oil & Gas UK DRILLING DZATA: The drillship Aban Abraham, pictured, has mobilized to Ghana to
all 18 onboard a Super Puma for possible implementation begin work at the Cape Three Points deepwater block in the Tano Basin. Vanco and
which crashed in a bank of fog on a pan-industry basis. Lukoil signed an agreement with the Ghanaian government that allows the
while attempting to land on Chaired by PSN chief companies to continue to explore the area while granting higher royalties to the
BP’s Marnock platform. executive Bob Keiller (pictured West African nation and increased participation for the Ghana National Petroleum
In a further incident on above), co-chairman of Oil & Corporation. The Aban Abraham was retrofit to drill in depths of up to 2000m and
6 April a Eurocopter 225, of Gas UK, the group currently deployed to the Dzata prospect to drill an exploratory well.
the same design as the Super comprises representatives of
Puma, was forced to make a the companies directly
precautionary landing on the affected by the fatal crash as automatically activated during aircraft safety systems. A new
flotel Safe Caledonia after a well as Grampian Police. the ditching they interfered draft technical specification
suspected fuel leak. The Other offshore helicopter with the long-range rescue facilitating safe use of the
Caledonia was stationed operators and North Sea beacons fitted to the helicopter beacons is now in preparation.
alongside the Sedco 714 workforce representatives will and life rafts, which could A memorial service for the
operating for Total in block be invited to future meetings. have seriously hampered victims of Flight 85N was held
30/1c. Later the same week a A priority issue identified at search and rescue operations in Aberdeen on 15 April. The
CHC-operated EC225 model the first meeting was finding a if the incident had occurred at North Sea Flight 85N
was delayed onboard Total’s technical solution to allow night or out of sight of the Memorial Fund (online
Alwyn North complex due, personal safety beacons to be offshore platform. As a result donations:
Total said, to a minor safely reinstated for all of the AAIB findings, the Civil www.oilandgasuk.co.uk) has
technical problem with a non- helicopter passengers flying Aviation Authority instructed been established to honour the
critical component of the offshore a priority issue. helicopter operators in the UK 14 offshore oil and gas
exhaust system which did not A preliminary AAIB that all PLBs had to be industry employees and two
compromise aircraft safety. investigation following the 18 switched off for the duration pilots who died in the tragedy.
The Helicopter Accident February incident at Marnock of offshore flights because of z According to the initial
Issues Task Group has been revealed that when the risk of inadvertent AAIB report into the fatal
set up to act on behalf of the passengers’ personal location activation and subsequent accident, examination of the
industry as a communications beacons (PLBs) were risks of interference with wreckage indicates that the

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DIGEST
accident occurred following a announced the discovery.
catastrophic failure of the Elsewhere in the Santos
main rotor gearbox. This Basin, partners Petrobras and
resulted in the detachment of Repsol confirmed their
the main rotor head from the Piracuca find, above the salt
helicopter and was rapidly layer in block BM-S-7, is
followed by main rotor blade commercial. Operator
strikes on the pylon and tail Petrobras announced the
boom, which became severed discovery in January. The
from the fuselage. There was field, in 240m of water and
also a rupture in the right previously known as
hand engine casing, in the Pialamba, holds an estimated
plane of the second stage 550 million boe of light oil and
power turbine. This is gas.
currently believed to be a
secondary feature.
Investigations are continuing
Cascade on track
in order to understand for mid-2010 flows
completely the accident Petrobras’ pioneering
sequence. deepwater Cascade-Chinook
A programme of inspection development in the Gulf of
and modification of the two FINISHING TOUCHES: Officially named at the Keppel Fels shipyard in Singapore Mexico remains on course to
models of Super Puma recently, the ultra-deepwater semisubmersible Ensco 8501 is scheduled for delivery begin production about mid-
helicopter subject to mid-year. The deepwater semi, the second in a series of seven the yard is building 2010. The FPSO conversion is
recommendations by the AAIB for Ensco International, will go into service with Noble Energy and Nexen Petroleum nearing completion in
took place last month in the Gulf of Mexico. Singapore, with its sailaway
following the release of an set for 4Q 2009 and arrival on
Airworthiness Directive by the location anticipated in 1Q
European Aviation Safety the public comment period on successful exploratory wells in 2010.
Agency on 17 April and an a proposed five-year plan for the prolific Santos Basin ‘The construction phase is
Alert Service Bulletin issued developing offshore energy offshore Brazil. almost done,’ Petrobras’
the following day by issued late in the Bush In mid-April, Petrobras, Walker Ridge asset manager
manufacturer Eurocopter. The administration’s term operating on behalf of BG Cesar Palagi told a recent
25 Super Puma AS332L2 and (OE March). The plan would Group and Repsol, confirmed Brazil-Texas Chamber of
EC225LP helicopters affected have fast-tracked energy the Iguacu light oil discovery Commerce gathering in
were grounded until their development off the Pacific in the basin’s ultra-deepwater. Houston. Although a modest
epicyclic gear box modules and Atlantic coastlines, areas The ‘significant’ pre-salt find undertaking by Petrobras’
had been fully inspected in long off-limits to drilling. is in block BM-S-9, which is Brazil offshore standards – a
accordance with the Salazar also called for a divided into one evaluation processing capacity of
directives. BP resumed North comprehensive report area containing the Carioca 80,000b/d is ‘not a big deal’
Sea flights using the Super compiling available find, and another containing said Palagi – Cascade-Chinook
Puma on 27 April. information of the nation’s the Guara discovery, which has been closely watched as it
Meg Chesshyre offshore energy resources, and holds an estimated 1.5-2 billion will be the first FPSO-based
in late April delivered boe. Iguacu is in the same development in the US sector
guidelines for developing evaluation area as Carioca, in of the hurricane-prone Gulf of
Western Gulf up renewable energy on the OCS about 2140m of water. The Mexico.
for lease which were required under the discovery was proved by oil The FPSO is to be turret
The next oil & gas lease sale Energy Policy Act of 2005 but sampling via a cable test in moored in about 2700m of
for the Western Gulf of not issued by the previous reservoirs about 4900m deep. water in Walker Ridge block
Mexico takes place 19 August administration. The Analysts have suggested the 205.
in New Orleans, the US guidelines pave the way for Iguacu discovery could Petrobras will lease the
Minerals Management Service offshore renewable lease sales, contain 5 billion boe of FPSO Pioneer, which is being
(MMS) announced. The which have not yet been recoverables although the converted at Keppel Shipyard,
proposed sale covers some 3400 scheduled. The MMS’ companies have yet to from BW Offshore. Two shuttle
unleased blocks in an 18 Maureen Bornholdt said the announce a reserves estimate. tankers, under construction at
million acre stretch of the US first proposals would likely be Petrobras said at the time of a Pennsylvania yard, will
Gulf offshore Texas, with wind projects in the North the announcement that it transport oil, and a gas export
water depths ranging from 16ft Atlantic, including five expected to begin drilling a line will handle the gas
to 10,975ft. potential wind energy projects new well in the area shortly. production.
US Interior secretary Ken offshore New Jersey, which BG Group also reported Cascade is the site of four
Salazar, whose department has launched an impact study. finding hydrocarbons with its wells, including the 2002
oversees the MMS, held a Corcovado-1 exploratory well discovery well, two appraisals
series of meetings around the in 800m of water in the in 2005 and a development well
country in April to get public
Santos pre-salt BM-S-52 concession area. This drilled earlier this year. Only
input for the Obama shines pre-salt reservoir will be the 2003 discovery well has
Administration’s Outer A pair of pre-salt discoveries– subject to a second exploration been drilled at Chinook.
Continental Shelf (OCS) at Iguacu and Corcovado – well later this year. The well With no analogous field to
drilling plan. Salazar extended continues the string of had not reached TD when BG the Cascade-Chinook area, and

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DIGEST
pumps on Norway’s Statfjord economic crisis begins to lift,
C platform and are also Paasivaara said companies
considering an additional four will need to make ‘significant
pumps for Statfjord B. Total investments’ in exploration
estimated cost of installing and power generation to keep
ESPs in the target wells of up, which would in turn fuel a
both platforms, at depths as demand for engineering,
low as 4500m, is around consulting and project
NKr3.5 billion. management services – and if
‘The overall value creation they can get it all from one
of the Statfjord late life project source, so much the better.
is estimated at around ‘This merger is extending
the nearby Jack field being the umbilical . . . the first thing NKr60 billion,’ said Ståle the range of services we can
only lower tertiary find that they think about is double Tungesvik, senior vice offer,’ commented Noble
has been production tested, armored.’ But the traditional president for the operations Denton group managing
Petrobras opted to develop the double-armored umbilicals west cluster in StatoilHydro’s director John Wishart. The
field through an early would be too heavy for use in Norwegian E&P business area. merger would not include any
production system (pictured). 2700m of water and would ‘This is a sixfold value job cuts, he said, adding:
‘There’s just one test in the limit the market for increase since the project plan ‘We’ve both got very ambitious
whole play. Not just one field, installation vessels as only two was submitted to the plans,’ including a 20%
but the whole play,’ Palagi would be capable of carrying authorities in 2004. The cash increase in staff at Noble
said. Initial production is out the job, he explained. By flow from Statfjord in 2008 was Denton alone. ‘Especially in
planned from two wells at using the carbon fibre sufficient to cover the entire the Americas,’ he said. ‘We’re
Cascade and one at Chinook; a technology that Aker late life investment, also a growing business – we need
second phase could involve introduced at Independence including the Tampen Link people.’
additional wells in each field. Hub (OE November 2007), the pipeline.’
A third phase could involve umbilicals came out lighter. ‘It Total investment in the
infill drilling, he said. opened up the market’ for Statfjord late life project is
Strategic alliances
‘Everything we do from now installation vessels, Schriefer now estimated at around Angolan NOC Sonangol is
on will depend very much on said. Delivery from Aker’s NKr23 billion, including the entering the US Gulf of
how these first wells perform.’ Mobile, Alabama, facility is Tampen Link – completed in Mexico. Cobalt International
Aker is supplying two slated for late this year. 2007 to connect Statfjord gas to Energy has agreed to assign
production control umbilicals All four umbilicals will the UK market – and the 25% of its interest in 11
and two power umbilicals for connect to buoys, Schriefer submersible pumps for Cobalt-operated deepwater
the field under a $65 million said. In a hurricane situation, Statfjord B and C. The Gulf of Mexico leases to
contract awarded in 2007. the buoys will drop to 300ft investment estimate of the Sonangol in return for a 40%
Discussing the composition of below the water surface. original development plan was operating interest in
these umbilicals with OE last Analysis of this plan turned NKr15 billion. deepwater blocks 9 and 21
month, Aker Solutions’ vice up a slight hitch, he said: ‘We ‘During the late life project offshore Angola. The pair have
president for business found that the buoy was going we have extended the signed joint participation
development Robert Schriefer down faster than the production period at the agreements for future activity
said: ‘When electrical umbilicals’ because the carbon Statfjord field beyond 2020,’ in both regions. Drilling in the
engineers think about a power fibre technology design so said Tungesvik. The planned US fields is expected sometime
lightened the umbilicals. The field production period had this summer while drilling
differential in speed led to been prolonged by 12 years, offshore Angola is expected
concern about the umbilicals two years more than originally next year.
compressing. ‘We needed to anticipated, he added. Total also recently joined
tune the umbilical so that it forces with Cobalt to explore
can go down faster,’ Schriefer the deepwater Gulf of Mexico.
said. Solid steel rods were
Anglo-German The two companies will
added throughout the length of axis eyes combine their exploration
the umbilical to increase the portfolios – 122 leases on
umbilicals’ weight. A cross
Americas growth Houston-based Cobalt’s side,
section of the power umbilical The first quarter merger of 80 on Total’s side, and 12 leases
shows three copper trios – two Hamburg-headquartered already jointly owned –
for pump circuits and one for Germanischer Lloyd (GL) and creating what the French
NEWFOUNDLAND FIND: StatoilHydro spare capacity – three quartets London-based Noble Denton – supermajor described as
has confirmed a discovery in the of the carbon fibre rods, and each of which has been on ‘access to large areas of
Flemish Pass Basin offshore three pairs of steel rods. something of an acquisition contiguous acreage, mainly
Newfoundland. Further analysis of the binge of late – creates the sort sub-salt, similar to major
of ‘holistic service provider’ discoveries in this area’.
well, drilled by Transocean
semisubmersible Henry Goodrich
New ESPs set for that ‘the large clients are Under the terms of several
(pictured) in 1100m of water at the Statfjord looking for,’ GL executive agreements, which are subject
Mizzen prospect about 500km northeast Following the success of the board member Pekka to MMS approval, Cobalt is the
of St John’s, is ongoing to determine the Statfjord late life project so far, Paasivaara said in Houston designated operator with 60%
find’s potential. StatoilHydro operates StatoilHydro and its partners last month. interest, while Total holds
Mizzen with a 65% working interest, have decided to invest in eight Predicting a sharp upturn in 40%.
with Husky holding the remainder. new electrical submersible energy demand once the global A multi-well program is due

14 OFFSHORE ENGINEER | may 2009 w w w . o f f s h o r e - e n g i n e e r. c o m

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DIGEST
PHOTO: HMC
JACKY JOY: UKCS independent Ithaca
Energy began oil production from its
Structures in Holland and installed in
January by Heerema Marine Contractors’
CONTRACT BRIEFS
Jacky oilfield and restarted production Hermod crane vessel. Subsea 7 took care z Dril-Quip was awarded a two-year
from the Beatrice Bravo platform in early of the tie-in to the Beatrice Alpha contract worth up to $80 million for
April, as planned. By 20 April the new production facility six miles away. Beatrice the supply of subsea wellhead
field’s single production well was Bravo was shut in by the previous field systems for BP’s Gulf of Mexico
reported to be flowing without artificial lift owners about two years ago due to pipeline operations. BP has the option to
at gross rates of around 8800b/d, ahead integrity issues. Ithaca opted to replace its extend the contract for three years.
of expectations. pipeline and install a water injection The work entails Dril-Quip’s
Jacky’s unmanned wellhead platform pipeline to improve oil recovery from the proprietary 15,000psi and 20,000psi
(pictured) was constructed by HSM Steel northern end of the Beatrice field. Big Bore systems.
z Baker Hughes is slated to install
to begin on the combined interest, with partner Mitsui to the latest Global perspective 30 Centrilift electrical submersible
portfolio this summer using a E&P Australia holding the floating production market pumping systems in the Peregrino
Total-supplied drilling vessel. remainder. update from Infield Energy field, in the Campos Basin offshore
StatoilHydro likewise Meanwhile, Apache Analysts. A total of 229 Brazil. The four-year, renewable
acquired a 40% stake in 50 Corporation said first floaters are expected to be contract calls for the provision and
BHP Billiton blocks in the production from another installed over this period, with servicing of harsh environment
frontier DeSoto Canyon area of development offshore Western Asia (61) leading the way downhole XP systems in 400ft of
the central Gulf of Mexico. Australia, Van Gogh, would be followed by Latin America (46) water.
The two companies bid jointly delayed after an electrical fire and Africa (43). Brazil’s z LeTourneau Technologies won
and were the apparent high damaged the project’s FPSO. Petrobras emerges as the most contracts worth $185 million from a
bidders on an additional 14 No one was injured in the active player with anticipated Brazilian construction consortium to
blocks in the trend at the 11 April fire aboard the expenditure of $15 billion, provide the rig kit, rig design and
recent Central Lease Sale 208 Prosafe Production FPSO followed by Total, Chevron, drilling equipment for two LeTourneau
(OE last month). Ningaloo Vision, which is Shell, ExxonMobil and BP. Super 116E jackup rigs, to be built at
being converted at Singapore’s According to Infield, there Petrobras’ Maragojipe, Bahia facility by
Keppel Shipyard and will be are currently three main
FPSO fires halt moored in 1100ft of water. The interrelated areas of concern
Consorcio Rio Paraguacu.
z KBR has a FEED and procurement
Vincent and stall blaze heavily damaged control in the contemporary global oil contract from BP, acting on behalf of
systems in the vessel’s and gas market: potential AIOC, for the Caspian Sea’s Chirag
Van Gogh instrument technical rooms. future under-investment, project, a single, large drilling platform
Oil production from the Apache said repair work could declining revenues of oil and that ties into the existing Azeri-Chirag-
Woodside Petroleum-operated take several months. gas companies due to falling Gunashli oilfield development
Vincent field offshore Western Upon delivery in the Van oil prices and the credit infrastructure.
Australia was shut in after a Gogh field, the Ningaloo crunch leading to recall or z TGS-Nopec and PGS have agreed to
fire aboard the FPSO Maersk Vision will be linked to two repayment of loans as well as combine the ongoing TGS Hernando
Ngujima-Yin (pictured). The subsea drill centres with 10 the lack of financing. 3D survey and the PGS Discovery
fire broke out 13 April in one production wells, two water ‘However, it is important to Desoto Canyon MC3D survey into one
of the vessel’s two gas injection wells, and one gas distinguish between the short- large, seamless, 3D multi-client project
compression units. No one was injection well. term and long-term prognoses in the Desoto Canyon in the Central
injured in the blaze, and FPSO The FPSO will have for the industry,’ adds the and Eastern Gulf of Mexico Planning
owner Maersk said the vessel’s processing capacity of report. areas. Named Hernando, the survey
structural integrity was not 63,000b/d and storage capacity ‘The lack of credit and a will cover a 365 OCS block area
compromised. for 620,000 barrels. falling oil price are considered ranging over 8500km2. Final data from
Woodside said in a short-term. Longer term, it is the full survey is expected to be
statement that it was expected that new offshore oil
investigating the fire with
Floating into and gas developments will
available to clients by the end of 2009.
z Aker Solutions landed a
assistance from Maersk and the future continue to face strong market $36.5 million contract for the delivery
Australia’s National Offshore The total global floating fundamentals. A tightness in of a deepwater riser system and
Petroleum Safety Authority. production systems market is supply and decreasing reserve buoyancy package to Daewoo
The Vincent oil project, set to exceed $85 billion during replacement ratios means that Shipbuilding & Marine Engineering.
which lies in 1500ft of water, the period 2009-2013 – an accessing new hydrocarbon The fifth such system ordered by
started production in August increase of $32 billion over the reserves will remain a priority DSME in recent months, it is
2008. Woodside has a 60% previous five years – according for oil companies even if scheduled for delivery by Aker’s
demand stays stationary. Malaysian manufacturing hub in 2011.
‘Under these circumstances z Global Offshore International won a
the industry is moving two-year, $35 million contract with The
towards deep and ultra- Shipping Corporation of India for diving
deepwater developments in services, personnel, and equipment
much more severe maintenance to be performed offshore
environments demanding the India aboard three ONGC vessels.
use of advanced technology,’ z Rowan Companies has signed an
concludes Infield. ‘Deepwater agreement worth $124 million with
activity is forecast to grow and Mexico’s Pemex for a 785-day
this is a crucial factor for deployment of the Gorilla IV jackup rig,
floating production market commencing in 2Q 2009.
growth.’

16 OFFSHORE ENGINEER | may 2009 w w w . o f f s h o r e - e n g i n e e r. c o m

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OE_M_4_Bisso_FP.indd 1 24/4/09 11:38:46
oe_M_4_NP_p019_analysis 28/4/09 5:10 pm Page 19

ANALYSIS
Drillers hang downturn
analysis those units are probably going
to come to the western side of
the world.’
So far, Carr said, ‘we haven’t

hopes on deepwater seen a lot of movement in rates’

for deepwater rigs. ‘But it will
be interesting to see what
Operators and drilling contractors alike are counting on deepwater to pull them happens as more units come
through tough economic times ahead. Russell McCulley gets a look at the rig stats, online. A number of operators
along with some analysis from executives and industry observers. are looking at renegotiating,
but longer term contracts are
Offshore rig utilization rates ‘That market is going to hard to change.’

W
ith commodity prices
still struggling to are fairly healthy, considering almost double in terms of In late March, Atwood
recover months after the turmoil in the market. assets that are available to Oceanics took the somewhat
taking a tumble, drilling According to ODS-Petrodata, drill,’ said Rick Carr, principal unusual step of announcing
contractors say they are 572 of the worldwide offshore and upstream subsector lead that its semisubmersible
putting more faith in the drilling fleet of 656 were under for Deloitte Consulting. Carr Atwood Southern Cross, rated to
deepwater market – and hoping contract in April, putting told OE that more than half the 2000ft water depths, would not
for a recovery that will utilization at more than 87%. newbuilds are under contract, be under contract during much
guarantee work in shallower But a significant number of and that other deepwater units of 2009 after a drilling program
realms. units are scheduled to come on are likely to find work by the offshore India was cancelled.
‘We have a real positive long- line in the next few years. Data time they hit the market. ‘Who ‘We weren’t shocked by that,
term outlook on deepwater,’ compiled by ODS-Petrodata knows where the price of oil is we’re just letting the market
Transocean president and chief show at least 90 semisubs and going to settle out? I think we know now,’ Atwood senior vice
operating officer Steven drillships scheduled for all have our opinions on that,’ president and secretary James
Newman told a breakfast forum delivery by 2012, joining a fleet he said. ‘But folks are making Holland told OE. ‘We thought
sponsored by the consulting of 101 existing floaters capable longer term plays in that the rig could go back to work in
firm RMI in Houston early last of drilling in water 4000ft or deepwater and ultra-deepwater the third quarter, but there’s no
month. ‘There’s not a lot of deeper. market. And a majority of work right now.’ Still, he
business being transacted today remains bullish on deepwater.
s
in deepwater, but the few ble Atwood has two newbuilds
s rsi ers
contracts that have been signed tic kup arges emis hips e
bm end under construction in
in 2009 have been long term, Arc Jac B S S Su T Singapore: the Atwood Osprey,
three to as much as eight years, 2009 0 29 0 15 6 0 4 54 a semisubmersible rated to
at what we would characterize 2010 0 27 0 16 13 0 1 57 6000ft-8200ft that will go to work
by any historical standard as 2011 0 13 0 13 18 0 1 45 for Chevron offshore Australia
very attractive day rates, in the 2012 0 0 0 5 4 0 0 9 at day rates of $450,000 to
mid-five to upper five [hundred $470,000 upon delivery in 2011;
unknown 0 2 0 1 1 0 0 4
thousand]s. and an unnamed DP semi rated
Total 0 71 0 50 42 0 6 169
‘Even at today’s commodity to 10,000ft water depths
price,’ Newman said, ‘we think Offshore mobile drilling units under construction or on order by scheduled for delivery in 2012 at
deepwater is sustainable.’ delivery year. SOURCE: ODS-PETRODATA a cost of $750 million. That rig

w w w . o f f s h o r e - e n g i n e e r. c o m OFFSHORE ENGINEER | may 2009 19

oe_M_4_NP_p020_analysis 28/4/09 5:10 pm Page 20

ANALYSIS
‘Even at today’s interesting to see what happens development mode in
as the jackup supply increases deepwater right now. Those are
commodity price we over the next few years.’ long-term projects, and they are
think deepwater is What’s likely, he said, is going to continue unless there’s
increasing downward pressure a complete collapse of oil
sustainable.’ on day rates and the possibility prices. And nobody’s predicting
Steven Newman, that many of the units built on that.’
spec will end up in the fleets of ODS-Petrodata figures show a
Transocean more established drilling total of 169 mobile drilling
contractors, ‘or at least being units in the works, including
managed by them.’ six tenders and four units with
For deepwater, Marsh said undetermined delivery dates.
is not yet contracted, Holland any length of time. With most 12 semisubmersibles and 16 This year, 29 jackups, 15 semis
said, but being marketed of the jackup contractors, it drillships are under and six drillships are scheduled
quietly. ‘We have no serious really has become a short-term construction with no firm for delivery; in 2010, the
discussions right now; in this market while everyone waits contract commitments. ‘But number jumps to 16 semis and
environment you wouldn’t for the other shoe to drop. The none of those are being 13 drillships, along with
expect to have any,’ he said. ‘At outlook is not very positive delivered this year, and only another 27 jackups. In 2011,
the same time, we’re not there.’ three of each next year,’ he another 13 jackups, 13 semis
panicking. We’re not thinking, Compounding matters is the said. ‘The bulk are not due until and 18 drillships will hit the
oh, we’ve got to go with number of jackup rigs, many of 2011, and we’ll know by then market; the following year, no
whatever comes in the door them speculative builds, where the market is heading. jackups are on tap, but five
here. We still believe we need scheduled to hit the market Our forecast is that those rigs semis and four drillships will
day rates in the $500,000 range, over the next couple of years. are going to find work.’ join the fleet.
and at this stage we still believe Between 2009 and 2011, The building boom could be
we can get that. Now a year according to ODS-Petrodata, at Relatively healthy over, for now at least. ‘Last year
from today we might see things least 69 jackups are slated for Even in the current climate, he there were 33 new contracts. In
differently, I guess.’ completion, joining a market said, there’s no evidence that the previous year, there were 25
Holland continued: ‘We see where rigs are being stacked in operators are pulling back from or so,’ said Carr. ‘I wouldn’t
deepwater being very sound increasing numbers. ‘That will deepwater projects under way. expect to see any this year.
right now. But the jackup have an impact on the jackup ‘If we had a really extended There are a lot of assets coming
market is completely in market regardless of the price period where oil prices were on in the market.’ Where all
disarray, and is continuing to of oil,’ Marsh said. ‘We could under $50 a barrel, then we that equipment ends up could
decline in day rates. And in not identify enough demand to would have seen some impact,’ depend in large part on Brazil’s
midwater, obviously, there’s not put all of those rigs to work, or Marsh said. The Gulf of pre-salt drilling program. ‘Once
a lot of opportunity.’ to keep all of the jackups Mexico, Brazil and West Africa offshore Brazil is proven out –
The US Gulf of Mexico, in working that will eventually be should stay ‘relatively healthy’ once we know what really is
particular, is losing jackups at a in the fleet. Now the owners of throughout the down cycle. down there – that could have a
quick pace, a combination of these new rigs will say that ‘Petrobras’ program is not huge effect,’ Carr said.
depressed natural gas prices these rigs are better and they’re necessarily dependent on short Mexico could help alleviate
and dwindling reserves in going to displace these older term fluctuations in the oil some of the pain in the jackup
shallow water. ‘The Gulf of rigs. And they might displace price because they have market, he said, with Pemex
Mexico jackup market is in some rigs down market. But production targets,’ he said. planning to increase rig count
distress,’ said Thomas Marsh, there’s not going to be ‘That’s why you see them by 10 or more by the end of the
publisher, US, for ODS- wholesale retirements of older continuing with exploration year. But the oversupply of rigs
Petrodata, which put the Gulf jackup rigs around the world. and field development has already driven down day
jackup utilization rate in There’s no reason to. They programs even in the current rates by about 30%, Carr said,
March at 55%. ‘There are very work fine, and they’re paid for. price environment. West Africa with the slide likely to
few contracts that extend out So it’s going to be very is very much in a field continue. > overleaf

Worldwide offshore rig count & utilization rate: quarterly average Average new contract dayrates for selected offshore rig market
2005 to present. SOURCE: ODS-PETRODATA segments. SOURCE: ODS-PETRODATA

20 OFFSHORE ENGINEER | may 2009 w w w . o f f s h o r e - e n g i n e e r. c o m

oe_M_4_NP_p021_analysis 28/4/09 5:18 pm Page 21

‘A number of operators

ANALYSIS
The international credit Scorpion that had to be
crisis is playing out in the rig cancelled when Scorpion failed
market as well, with some to line up financing for the
are looking at
projects slowed or cancelled. project (see ‘Shipyards’, page 53). renegotiating [deepwater
‘Right now, the challenge is that The partially built MPF 01 has
the actual builders are having been put up for sale.
rig rates], but longer
finance issues,’ Carr said. Offshore drilling contractors term contracts are hard
Credit issues recently derailed large and small are steeling for
two rigs that were to be used in what promises to be a to change.’
Petrobras projects: the MPF 01 challenging couple of years. Rick Carr, Deloitte
drillship, which was under Atwood Oceanics won’t be
construction when MPF looking to expand its fleet of 11
Corporation filed for rigs for some time, Holland focus on what we have on our 142 rigs and drilled some 1300
bankruptcy; and a said. ‘Our whole interest today, plate – getting those two units wells in 2008, intends to
semisubmersible to be built by and mostly through 2010, is to built, and do what we can to increase its deepwater capacity,
backlog our rigs the best we Newman said at the Houston
can,’ he said. gathering. The company is
Pride International spun off ‘intently focused’ on
20 mat-supported jackup rigs, participating in all offshore
all located in the US Gulf of markets – deepwater, midwater
Mexico, into a separate entity and jackup – ‘because of the
called Seahawk Drilling; the strategic benefits that a
company is retaining seven presence in those markets
independent leg rigs, two of brings through market
which are working for Pemex presence, client relationships,
in the Gulf of Mexico and five and tremendous platforms for
that are spread out in other developing people,’ Newman
countries, while turning more said. ‘So we’ll stay in the
attention to deepwater. By 2012, midwater market and the
the company expects deepwater jackup market in spite of the
to account for 78% of revenues, depressed market
Worldwide offshore rig fleet: supply, demand and utilization. up from 38% in 2008. fundamentals of those
SOURCE: ODS-PETRODATA And Transocean, which has businesses today.’ OE

w w w . o f f s h o r e - e n g i n e e r. c o m OFFSHORE ENGINEER | may 2009 21

oe_M_4_NP_p022_analysis 28/4/09 5:18 pm Page 22

ANALYSIS
‘We must take action now
to develop new generations
of skilled workers as
previous generations retire.’
Dick Olver

Skills and know-how still needed

despite oil price uncertainty
the industry is still coming to countries and regions

I
t is inevitable that the He said that the oil & gas
falling oil price will see terms today. Global industry has had a involved.
some projects postponed or connections – across energy particularly important part to ‘We all recognise the need to
even cancelled and this will businesses, academia and play in the development of the attract more young people into
have an impact on levels of governments can help identify UK’s education and training the energy industry and into
investment in training and solutions to these challenges,’ capabilities. Over 40 years of studying and practising
development,’ said former BP he maintained. successful exploration and science, engineering, and
bigwig Dick Olver at the ‘Energy demand will production in one of the technology in general,’ said
opening of the getenergy 2009 certainly continue to rise in world’s most hostile marine Olver.
conference in London this the years to come – despite any environments means that the ‘Many countries have
spring. ‘However, many economic downturns we may UK is recognised as a global initiatives in this area that
analysts do expect that overall encounter. Hydrocarbons will centre for the provision of could, to everyone’s benefit, be
this will result in levels of continue to dominate supply high quality accredited skills shared and mutually
activity reaching more in the period to 2030 and development, training and supported. These are also
sustainable levels. probably beyond, but climate competency testing. Today, UK connections that would be to
Increasingly the underlying change is driving the pace of universities and training the benefit of everyone.’
driver for growth is reserves new technology aimed at institutions are established in Phil Andrews, CEO of
rather than current demand. delivering cleaner, cost all of the world’s leading oil getenergy, said that education
This means that skills and effective carbon-reduced centres, helping international and training are necessary for
know-how will continue to be energy. This will require clients to develop more survival: ‘We are told that
required to access these investment not only in new efficient and safer workforces many companies cannot afford
complex and difficult to reach technology but in the human and increase productivity in education and training
replacement reserves.’ talent which makes such operations. interventions as once they
Olver was opening the development possible. One thing that is generally could. But we know that they
conference in his role as a UK recognised, added Olver, is the cannot survive without them.
business ambassador, having Recruitment legacy need to build stronger Education and training for the
been invited by the prime ‘The ongoing development of a connections between the oil and gas industry is not like
minister to work with the skilled and competent industry and the universities, party organisation for the
government to promote ‘UK workforce is essential to the colleges, and all education and banking sector. It’s not like
excellence’ internationally health of any industry and training providers with consultancy for the
and to highlight trade and many of the challenges faced contributions to make in the automotive industry. And it’s
investment opportunities. in the early days of developing subject areas and disciplines not a “nice to have” when the
Olver is currently chairman of North Sea oil were overcome important to the industry. weather is fair. Those who
BAE Systems, but was through the innovation of There needs to be a greater think it is and who have cut
previously deputy CEO at BP. well-trained technicians, emphasis on education and their spending as a result,
The legacy of previous engineers and managers. In training provision in joint have very short memories and
downward cycles when the oil energy skills, we face a serious venture agreements for the will be forced to return and
price fell to $10 a barrel has challenge. We have become exploitation of energy spend far more simply to catch
been an industry resilient and reliant on a workforce that is a resources between countries those who did not.
able to adapt flexibly to these legacy of recruitment in the and between energy ‘History shows that the oil
current challenges, said Olver. 1970s and 1980s – and I am one companies. Education and price always recovers,’ said
He urged the industry not to of those! Of course, this is not training should be an Andrews. ‘The need to train
repeat the mistakes of the past unique to the UK. In fact, most important component in such and develop those in countries
where investment in training of the developed world faces agreements with the potential rich in hydrocarbons is all the
and development suffered with the same situation. Therefore, for delivering more more important, because
consequent severe medium we must take action now to sustainable communities in oil without a skilled population,
and longer term impact on the develop new generations of producing areas and for they cannot sustain their
availability of skills and skilled workers as previous improving the capacity, range, economies in the medium
people – an impact with which generations retire.’ and quality of education in the term.’ Meg Chesshyre

22 OFFSHORE ENGINEER | may 2009 w w w . o f f s h o r e - e n g i n e e r. c o m

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oe_M_4_p024_G_G 29/4/09 6:23 pm Page 24

G&G NOTEBOOK
‘As yet drastic cuts do not seem to be on the
agenda, apparently based on the conviction that
oil companies cannot delay further exploration for
very long in the face of global energy demand.’

by Andrew McBarnet
[email protected]

aggressive plan to build a seismic fleet have occurred eliminating any chance

Seismic capable of carrying out everything from

2D and 3D seismic to ocean bottom cable
and wide azimuth. After a modest
SCAN might have had to catch the tail
end of the boom market, and the financial
implications have clearly been weighing

beating the beginning, the company increased its size

in 2008 with the introduction of the
2D/3D vessel SCAN Stigandi to join its
on its operations for the past six months
or more.
As of late last month, SCAN had signed

retreat?
four streamer 2D SCAN Resolution and its a heads of agreement with ABG Shipyard
flagship 3D 12 streamer vessel Geo jointly agreeing to novate the
Searcher. But the big idea was its decision shipbuilding contract for all three vessels.
to order the construction of three brand The agreement was due to be substituted
Seismic business was never going new 10 streamer 3D vessels. The move had by a final agreement which would release
to be immune from a recession this a certain logic even though such a big both parties from all rights and
deep. Andrew McBarnet detects commitment had to be a risk for a small obligations and any claims and liabilities
operator. Marine seismic survey demand under the shipbuilding contract.
some companies are more troubled was outstripping supply at the time and SCAN is offering to provide full
than others. the finance was available from Norwegian technical assistance to complete the
investors. A larger fleet could also be vessels. The cost of such technical
expected to provide increased market assistance and other ancillary expenses

I
t’s not clear yet how far the geophysical
services industry is into the reach and logistic/mobilization will be borne by the novated company at
recessionary cycle because an efficiencies when bidding for contracts its discretion. The agreement includes
impressive backlog of marine seismic worldwide. sale of complete seismic equipment for
surveys has had to be worked through. All In retrospect the choice of ABG one vessel and an additional generator set
we know is that the big companies were Shipyards in India has not turned out and will secure SCAN minimum proceeds
expecting trouble even while continuing well. It was arguably a gamble for a of $22 million for this equipment. The
to report near record revenues, and there relative novice seismic company to transaction will result in a loss of
also is plenty of anecdotal evidence of oversee such a substantial overseas Nkr77 million compared to the book value
future order books looking less solid. contract with a yard unfamiliar with the of the equipment as reported per
A clearer picture may emerge with the requirements of a hi-tech seismic vessel. 31 December 2008.
next round of quarterly reports due this Price and availability were probably the Surveys are still coming in for SCAN. In
month. However, at this stage it seems main reasons for going to India as all the the last few weeks it has announced a
fair to characterise the response to any established yards were fully booked. For 2500km 2D seismic contract for Geo
impending gloom as measured. One whatever reason, delays in construction Searcher from Petrobras offshore Brazil
reason for this is that the dark clouds had
been on the weather chart for quite a long
time. In other words companies knew that
the boom could not last forever, but have
had plenty of time for some contingency
planning.
Cutbacks are of course easier for well
resourced companies which can trim at
the margins rather than impact core
business viability. Notable exceptions
would be those smaller, and by definition
more vulnerable, marine seismic
companies that persuaded themselves and
their investors that there was a return on
investment to be had from building new
vessels to catch the boom market. At best
this strategy appeared intrepid. The
Norwegian company Scan Geophysical is
discovering just how badly things can go
wrong, and in the process is inadvertently
introducing an unsuspecting world to the
‘novate’ option in a shipbuilding contract.
SCAN started in 2002 with an Indian-built SCAN Empress: to be launched into an uncertain future.

24 OFFSHORE ENGINEER | may 2009 w w w . o f f s h o r e - e n g i n e e r. c o m

oe_M_4_p025_G_G 29/4/09 6:23 pm Page 25

G&G NOTEBOOK
Two bosses with different
perspectives. Dalton
Boutte (left), CEO
WesternGeco, is leaving
the troubled seismic
market for a different job
in Schlumberger, and
Bob Peebler, chairman
and CEO, ION
Geophysical, still trying
to restore company health.

and a 2000km 2D award for the Stigandi In a sense the RXT story is a cautionary improve imaging over known reservoirs
offshore Peru usefully adding to its track tale of the perils of introducing thanks to the recording of both P and S
record in Latin America. GX Technology, innovative technology into the wave. However, the operation had limited
the ION Geophysical subsidiary, last notoriously conservative E&P oil success because of the cost and some
December signed up Geo Searcher for an industry. In years gone by – 20 years ago scepticism about the additional value
8000km 2D survey offshore Argentina. or more – oil companies had the R&D compared with much cheaper streamer
resources to invest in and develop new acquisition (even though the data did not
Financial issues concepts. For example, Shell played a provide S wave imaging). When the
Over-ambitious vessel expansion starring role in the introduction of 3D conventional streamer market began to
programmes are also at the heart of the seismic. But sometime in the late 1980s pick up after the 1999-2001 downturn,
financial issues affecting two other there was a discernible shift. Oil WesternGeco and PGS both shelved their
Norwegian companies in the marine companies began to pare down their R&D OBC crews because they were not
geophysical services business, Reservoir departments in a quest to improve their regarded as cost-effective.
Exploration Technology (RXT) and bottom line, and gradually put the onus RXT saw a gap in the market which it
Electromagnetic Geo-Services (EMGS). In on contractors to come up with could fill if the issues surrounding
both these cases, the companies were not technology improvement which would survey costs and imaging results could be
only start-ups but had the additional further improve their financials. Thus in addressed. The company’s answer was to
challenge of trying to make a market for the 1990s the enormous improvement in deploy, on an exclusive basis, ION
new services. Both were favourites with seismic productivity through the use of Geophysical’s newly developed VectorSeis
investors when they began and, after multi-streamer 3D acquisition was Ocean, at the time the most advanced full-
initial success, the Oslo market was more contractor-led, notably by Petroleum Geo- wave digital cable-based recording
than happy to subscribe to major capital Services (PGS) with none other than system. In addition, the strategy was to
investments in additional capacity. Mike Scott as one of the key players. reduce costs by carrying out the surveys
The most dramatic evidence of RXT’s Ironically he left PGS before it nearly with only one vessel acting in cable-
fall from grace came when the company’s sank in a sea of debt created mainly by laying, shooting and recording roles
highly regarded founder and inspiration over-ambition. compared with previous multi-vessel
Mike Scott resigned from his position as Scott and his colleagues created RXT in scenarios. Early successes encouraged
CEO in February following weaker than 2005 because they believed that the the company to expand the number of
expected quarterly results. The company languishing market for ocean bottom crew operations to five and the ordering
says it is now focused on maintaining its cable (OBC) seismic surveys could be of custom-built vessels. It may also be the
liquidity, streamlining its costs, and turned into a profitable niche offering. case that there is a minimum quota of
trying to realise backlog of some Crews laying instrumented cable on the crews before such a capital-intensive
$450 million. seabed had been used in the 1990s to operation is comercially justified.
RXT’s recent distress was signalled by
the lack of a follow-on programme for its
RXT1 Gulf of Mexico crew, low
production in the Caspian Sea due to
excessive weather downtime, lower
profitability in Nigeria and a delayed
start for fourth and fifth crews. More
deep-seated is the continuing question
mark over OBC technology. RXT
succeeded in persuading some companies
that the improved imaging over
reservoirs in certain geological settings
was worth the investment.
One problem may be that only a limited
number of companies have the in-house
expertise and confidence to order such a
survey and then understand the results.
Processing of multi-component (P and S
wave) data is still acknowledged to be
something of a black art. In uncertain
economic times, it’s no surprise that E&P
companies shy away from anything
EMGS vessel: now working in alliance with Fugro. bearing undue risk. The result is that

w w w . o f f s h o r e - e n g i n e e r. c o m OFFSHORE ENGINEER | may 2009 25

oe_M_4_p026_G_G 29/4/09 6:24 pm Page 26

G&G NOTEBOOK
RXT OBC: operations have
hit financial setback.

RXT’s niche market has been put under reductions and salary cuts. wanted to keep its EM options open. Last
pressure. Competition may also be The other Norwegian company with a month it agreed a global cooperation
emerging from the use of nodes instead of tale of woe is EMGS. It set itself up as the agreement with EMGS effective through
cable as employed by SeaBird Exploration leader of the revolution in subsea 2011, which more than likely will develop
(OE March), although latest word is that imaging using controlled source into something more lasting.
the commercial survey for Total off electromagnetic (CSEM) and grew the Fugro will gain full access to EMGS’
Angola was not a total success. To further company to meet a demand for its marine EM methods for hydrocarbon
complicate matters, mainstream services which has not materialised exploration and production, and in return
contractors have been constantly (OE February). The parallel with RXT is EMGS will gain access to Fugro’s
improving the quality and scope of data striking. In other words in the E&P worldwide marketing network and
that can be generated from conventional business it is important to distinguish marine operating expertise. A joint
towed streamer arrays. Most poignantly, between early adopters and mainstream statement said that the companies had
the advent of the wide-azimuth seismic take-up of new technology. also entered into a non-exclusive
survey could be undermining the need for worldwide multi-client cooperation
OBC to image complex geologies such as Technology stake agreement, as well as a non-exclusive
the subsalt of the Gulf of Mexico and This is not to imply that there is a limited global technology licensing agreement.
other similar structures around the world. future for EM as may be the case for OBC For the financially stretched EMGS,
RXT’s problems are not helpful for ION seismic surveys. All the main contractors Fugro is providing a Nkr150 million
Geophysical, the supplier of its seabed – WesternGeco, PGS, CGGVeritas and secured convertible loan-bearing interest
equipment. ION has difficulties of its Fugro – have a stake in the technology at 7.00%p.a. The loan can at any time be
own. Indeed of the biggest service and through acquisitions or investments. Up converted into common shares in EMGS
equipment companies in the E&P until now EMGS had been the only EM- at the conversion price of Nkr5.75 until
geophysical sector, ION is arguably related operation going it alone without the maturity date on 2 January, 2012.
having the hardest time. The company in some tie to a main contractor. This For EMGS it was just a matter of time
February announced a sizeable decline in strategy had three potential pitfalls. First before it gave up its unsustainable
earnings when just about every would be the company’s inexperience in independent operator status. Its elevated
significant player reported big profits. In efficiently operating what was becoming share price during the initial excitement
the manufacture and supply of marine a substantial fleet of EM survey vessels over CSEM made it an expensive buy. The
and land seismic acquisition equipment, around the world. Secondly, in a softening cooperation deal looks a shrewd move for
it is seemingly unable to dent the market for CSEM services experienced by Fugro which is now linked with the
continuing success of the CGGVeritas EMGS and its principal competition CSEM lead contractor at a bargain
subsidiary Sercel which in February Offshore Hydrocarbons Mapping (OHM), basement price.
reported record revenues. On land, ION the company had no other line of As the fall-out from the recession and
has tried to jump a technology generation business to support revenue shortfalls. In the low price of crude continues to
with the launch of its FireFly cableless the case of OHM, its acquisition of Rock impact oil and gas E&P investment, there
land seismic acquisition system, but it Solid Images has proved something of a will surely be numerous geophysical
does not seem to have created a game life-saver as it provides an alternative service companies with hard decisions to
changer. Meantime last year it paid a lot – revenue stream in the quantitative make. The major contractors have so far
nearly $350 million – to buy a Canadian interpretation of seismic data. Thirdly, talked prudent measures to meet weaker
land seismic manufacturer ARAM in EMGS has lacked resources to rapidly demand including some vessel
order to be more competitive in the develop a convincing tool for integrating retirements and implying some job losses.
conventional land cable based seismic EM data with other data such as seismic As yet drastic cuts do not seem to be on
market vis a vis Sercel: it may be early and well data. This is regarded by many the agenda, apparently based on the
days, but the strategy doesn’t seem to be observers as the priority if EM is to gain conviction that oil companies cannot
paying off. As a result ION’s most reliable greater traction in the industry, and it is delay further exploration for very long in
lines are its marine imaging section, an area where OHM with Rock Solid the face of global energy demand. One
where its positioning products are Images and WesternGeco with the man who may be relieved at being
particularly strong and the new resources of its parent Schlumberger, reassigned from the seismic services
DigiSTREAMER has found takers; and its have been better positioned to address. business at this unpleasant juncture is
seismic data processing division GXT A white knight for EMGS has emerged Dalton Boutte, president of WesternGeco
Technology, which also manages a in the shape of Fugro. The Dutch-based and an executive vice president of
surprisingly successful if modest multi- geotechnical services group with a Schlumberger. He is becoming
client seismic survey business. Bob seismic fleet operated out of Norway by Schlumberger executive vice president
Peebler, chairman and CEO, warned that its Fugro-Geoteam division last year industry affairs, based in Houston,
2009 would be challenging for ION’s purchased a 60% interest in a Russian EM leaving his successor Carl Trowell with
markets, reflected by recent staff company. The move indicated that Fugro what will be a challenging portfolio. OE

26 OFFSHORE ENGINEER | may 2009 w w w . o f f s h o r e - e n g i n e e r. c o m

OE_M_4_NP_Page27 29/4/09 7:58 pm Page 1

OE_M_4_Delmar_HPH.indd 1 24/4/09 11:54:43

OE_M_4_TSC_FP.indd 1 24/4/09 17:37:56
oe_M_4_NP_p029_Q4000 28/4/09 6:39 pm Page 29

DRILLING
T
The prototype Multi Purpose Tower, he Q4000’s designers envisioned the
equivalent to a standard drilling vessel with a wide open flat deck
derrick, after seven years of operation. outfitted with two pedestal cranes that
allowed the company to mobilize
equipment specific for whatever job it was
destined for.
‘It was meant to be plug-and-play, fit for
purpose, pay for what you need,’ says Kurt
Hurzeler, commercial manager for Helix
Well Ops. ‘When we built the Q as an
intervention vessel, the question with
drilling people is they want it bigger, and
from a commercial side you want it smaller
because smaller is cheaper. At one time we
thought the Q was bigger than it had to be
for intervention work. But we found that it
was sized about right for the type of work
we were doing.’
Then, in 2006, Helix was looking to
expand its deepwater development
opportunities and bought Remington. The
desire to explore and produce the fields led
the company to decide to use its flagship
vessel as an internal drilling and
completion asset. Initially, the company
planned to drill exploratory wells for data
purposes only. In that way, Hurzeler says,
the Q4000 ‘would be strictly an
exploration/geophysical vessel’.
But following discussions with operating
companies who wanted to be able to
produce any hydrocarbons located through
exploration, Helix revised its plans. A
bigger hole was needed. With the slimbore
package, he says, the Q4000 will be able to
work at about 60% of the ERT prospects,
based on water depth and bottomhole
pressures.
The refit followed in-house and
outsourced engineering and design work
and purchase and configuration of
equipment. Delta Fabrication – the
primary module provider – built the
modules onshore. The modules were

Slimbore puts niche

installed on vessel at the Gulf Copper
shipyard while the Q4000 was in last year
for the upgrade and other modifications,
such as the addition of two thrusters.

vessel on new course Historically, the vessel has not had the
ability to deploy drill pipe with pressure
control while on a well. For intervention
The Helix-owned Q4000 has long focused on well intervention and work, Hurzeler says, the Q4000’s well
construction work, but a recent upgrade has opened up new possibilities for pressure control is deployed and
suspended through the Huisman Multi-
this niche vessel. Jennifer Pallanich kicks off this month’s drilling hardware Purpose Tower (MPT) derrick throughout
review with a look at the DP3 semi’s new slimbore drilling package. the operation; in that configuration, the

w w w . o f f s h o r e - e n g i n e e r. c o m OFFSHORE ENGINEER | may 2009 29

oe_M_4_NP_p030_Q4000 28/4/09 6:39 pm Page 30

DRILLING
‘Whether we ever drill or Generally, drilling risers are not a problem.
But with that in mind, if you’re drilling and
complete, we’re a much better you have a problem with the single barrier
intervention unit now than we high pressure drilling riser, you have a
problem . . . especially in deepwater,’ Conner
were prior to the upgrade.’ says. He notes the industry has had
Kurt Hurzeler, Helix Well Ops numerous riser disconnections from
MODUs.
Safety concerns aside, he says the MMS
understands the advantages of what the
Q4000 is trying to accomplish. ‘It probably
will happen with mitigation. There are
vessel cannot run drill pipe. To be able to the length of the WROV umbilical and mitigations you can do to make it safer,’
run drill pipe, he adds, the vessel will have crane wire. It has 4000t of variable deck Conner says, and riser and integrity
to suspend the riser from something other load. Adding the drilling equipment did not monitoring programs would be probable
than the derrick. The answer came via radically affect the usable deck space, the requirements. Likely candidates are wells
installing passive heave compensation in company says. with low bottomhole pressures, rather than
the moonpool. That change reduced the ‘The top deck is rated the same as an HP/HT well in ultra-deepwater, he adds.
usable area in the 39ftx22ft moonpool to original deck, so we didn’t really lose deck ‘Our riser telescopic joint is a little bit
20ftx20ft. ‘For most of our operations, area; it just moved up a couple of stories,’ shorter than some of our competitors
that’s more than adequate,’ he says. Hurzeler says. because we’re starting with a smaller
The upgrade included a fluids treatment The 135/8in slimbore well package – added riser,’ Hurzeler says. ‘We’re drilling
facility and mixing area. New dual NOV during a nine-month stint at the Gulf capable, we’re completions capable, but it’s
HEX pumps installed on the vessel have a Copper shipyard – is designed to rely on a all couched in future terms until we get
combined 2300gal/min output of mud. surface BOP (SBOP) for pressure control. those permissions.’
Bulk storage was also added to provide an Such a system has yet to be used in the A draw to operators, he says, is that the
area for barite, bentonite and chemicals Gulf of Mexico from a DP vessel, although Q4000 will be more economic than other
meant to be mixed with the mud. it has been used in offshore areas like drilling options.
The Hydralift top drive system is rated to Southeast Asia and Brazil. Helix says it has Helix’ flagship vessel, built by AmFels in
7500psi. The Huisman Multi-Purpose received provisional approval from the US Brownsville, Texas, and christened in 2002,
Tower serves as the derrick and has a hook Minerals Management Service for the can carry out well intervention and
load rating of 600t and 144ft of free lifting Q4000 to carry out drilling and completions construction in water depths to 10,000ft.
height. work. ‘It’s not unique, never used before With the new package, the Q4000 can
‘The only downside really is there’s no technology, but it’s new to the Gulf, and it’s suspend 16in riser in 4000-5000ft of water
vertical pipe rack back,’ says Peter new to Well Ops,’ he says. and can suspend 135/8in riser in 6000-7000ft
Crawford, the Q4000 QEHS advisor. ‘Any The MMS has given Helix conceptual of water.
pipe or stands of pipe are racked approval to use the Q4000 with a surface ‘Those become our operable limits – in
horizontally.’ To that end, the Hydralift BOP only for cased hole workover terms of water depth and drilling and hole
horizontal pipe racking system has a 22.7t situations, says Mike Conner, supervisor size,’ Hurzeler says.
knuckleboom crane to assist in pipe for technical assessment for the MMS. For The company expected the inaugural job
transfer. a workover job, he says, Helix will have to to be on a Helix field, but that work has
Other specs include the 73/8in complete an application that includes a been pushed back to next year. Helix has
intervention riser system, eight riser site-specific application, a third-party yet to firm up a job for the Q4000 and the
tensioners, and two Schlumberger MD 1000 review of the equipment and procedures, new drilling package but is in negotiations
well service pumps. Liquid mud capacity is and qualification testing of the dual blind for completion work. He expects the Q4000
1190 barrels surface with 1800 barrels shear rams mandated in the conceptual to remain in the Gulf for the foreseeable
reserve. Bulk mud capacity is four units approval. Helix will also have to carry out a future; the vessel has about nine months of
holding 1500ft3 each, while bulk cement risk assessment and place and test a shear work contracted.
capacity is two 1500ft3 units. device on the seafloor to prove it’s fit for ‘The Q4000 has always been a niche
The Q4000 carries a 3000m heavy service to gain full MMS approval. The purpose vessel, and I think we’ll remain
weather ROV system. The vessel can MMS also requires an HAZID or HAZOP as that on the drilling and completion side as
accommodate 133 personnel and is 95.2m part of the application. well,’ Hurzeler says. ‘Whether we ever drill
long, 64m wide and 8.1m deep. It has an An SBOP with a high-pressure riser or complete, we’re a much better
operating draft of 15.1m and can work in system has been used on fixed structures in intervention unit now than we were prior
waters to 10,000ft. Water depth is limited by the Gulf of Mexico but ‘we’re even to the upgrade.’ OE
concerned about that now a little bit,’
Conner says, given the weather and
metocean conditions in the Gulf. ‘We feel
like we have Mars-type structure down-pat.
We’ve done quite a few of them.’ The MMS
has other concerns about the SBOP set-up
with a DP vessel: ‘If you lose DP, then you’ve
got a problem,’ Conner says – and the use of
an SBOP in ultra-deepwaters where there
may be only a single barrier, such as a riser
system from a MODU, TLP or spar, further
Prototype NOV Hex fluid pumps after one complicates matters. ‘We’ve only had one
year of service. drilling riser fail in the Gulf of Mexico.

30 OFFSHORE ENGINEER | may 2009 w w w . o f f s h o r e - e n g i n e e r. c o m

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OE_M_4_Tam_FP.indd 1 28/4/09 13:33:52

oe_M_4_NP_p032_drillingbits 28/4/09 5:34 pm Page 32

DRILLING
‘We have design rules about how stable a
bit has got to be. If it’s not acceptable,
then we redesign it again and again.’
Andy Murdock, Reed-Hycalog

Creating that
cutting edge
Drill bit manufacturers design their bits to meet the
quadruple demands of the offshore environment –
durability, rate of penetration, stability and
steerability. Jennifer Pallanich traces the evolution
of the bits designed for drilling in the costly
offshore environment and outlines how some of the
top drill bit companies create their cutting tools.

Halliburton’s Direction by Design software provides a technical and scientific tool that quantifies the effects of even slight design
changes on the ability of a bit to drill a deviated well, before the bit is built.

32 OFFSHORE ENGINEER | may 2009 w w w . o f f s h o r e - e n g i n e e r. c o m

oe_M_4_NP_p033_drillingbits 28/4/09 5:35 pm Page 33

‘Cutter technology has advanced so far

DRILLING
in the last five years that the cutters
now outlast the body material.’
Kevin Glass, HDBS

facility, a single point cutter machine and

P
erhaps the largest change drill bit
design has seen over the years is a two boring mills. On the 5000hp downhole
shift from relying on little data and simulator, with its ability to simulate
intuition to relying on more complete 15,000psi and TVD of 31,000ft, the lab can
data, analysis and modeling programs. ‘vary all parameters within a single core
Even with the various algorithms of rock,’ Lutes says. The company then
running in the background, designing a donates the cored rocks to the Texas
bit seems more like an art of balancing Department of Parks & Wildlife for use in
the operator’s competing desires of reef rebuilding.
durability, ROP, stability and steerability. Hughes Christensen also maintains a
‘There is not a perfect bit,’ says Bruno morgue where it examines used bits in an
Cuillier, product application manager at effort to find ways to improve bit design.
Varel. ‘When you make a design, you try Reed-Hycalog, a part of NOV, uses
for a perfect compromise.’ proprietary SystemMatcher software to
Halliburton Drill Bit Services (HDBS), select the right bit for a directional job.
Hughes Christensen, Reed-Hycalog, The software carries out an algorithm
Smith Bits and Varel all say that considers all bit features against the
understanding the application and the planned job and the required durability,
operator’s priorities are the first step in steerability, stability and ROP. ‘Our
creating the appropriate bit for the job. algorithm calculates the indices,’ says
They also all maintain rock databases and Andy Murdock, product manager for drill
use analysis, modeling and often bits and services for NOV Reed-Hycalog.
proprietary algorithms to determine The tool displays a sliding scale that
which bit to recommend for a drilling shows which attribute – ROP, stability or
operation. Testing is frequent, and post- durability – must be sacrificed in order to
job reviews lead to continued get the desired performance. ‘We have
improvement, the bit companies say. The Hughes Christensen full-scale, high- design rules about how stable a bit has got
When it comes time to create a bit, pressure drilling simulator brings the field to be,’ he says. ‘If it’s not acceptable, then
HDBS uses what it refers to as Design at into the laboratory, reducing new bit we redesign it again and again. There are
the Customer Interface (DatCI), a process development from months to days. a lot of techniques, rules of thumb and
in which an application design evaluation guidelines that the engineers use.’
design specialist works with the customer Glass adds, but ‘predicting the durability TerraScope is another proprietary
to define the application, recommend is a little more challenging.’ program that NOV Reed-Hycalog relies
solutions, and optimize results. One Hughes Christensen, a product line of on. This program catalogs rock strength
element is often steerability, says Kevin Baker Hughes, maintains a bit record and helps show where danger zones might
Glass, director of strategy and marketing database, where the company has be. The whole approach has become
for HDBS Drill Bits. The operator ‘may be attempted to record data on every well holistic and empirical, Murdock says.
willing to sacrifice ROP and durability to drilled in North America by Hughes ‘It’s often a balance between
go where they want to go,’ he says. Christensen bits as well as those by its aggressivity or durability,’ says Garrett
HDBS does modeling with their competitors. By pulling the data for area
proprietary I-BitS software, calibrated wells near a planned drill site, the
with component tests and full scale tests. company hopes to identify means to
Balance modeling is done in a system that improve the bit performance.
originated with Amoco in the early 1990s Once Hughes Christensen has designed
but that HDBS has added to. ‘We’ve taken and modeled a bit, it can run the bit
it from 2D to 3D,’ Glass says. The system through its Drilling Technology
now also includes the gauge pads and Laboratory. In the lab, the company
other elements. ‘Early modeling just varies the drilling parameters to find out
modeled the cutters,’ he says. ‘In the early how the bit performs and if the bit will
days, we didn’t know much about BHA vibrate, says Paul Lutes, drilling
modeling. We didn’t look much beyond technology laboratory manager, Hughes Halliburton’s DatCI service platform is a
the bit.’ Now, he says, the industry has a Christensen. ‘When testing bit vibration, continuous improvement loop that uses a
better understanding of how the BHA we’re trying to predict the stability global network of application design and
affects bit performance. threshold,’ he says. The lab is equipped evaluation specialists who work directly
Predicting the ROP and steerability is with a high-pressure drilling simulator, a with the customer to define the application,
something that can routinely be done, full-scale atmospheric pressure test recommend solutions, and optimize results.

w w w . o f f s h o r e - e n g i n e e r. c o m OFFSHORE ENGINEER | may 2009 33

oe_M_4_NP_p034_drillingbits 28/4/09 5:35 pm Page 34

DRILLING
‘When testing bit vibration, we’re environment. ‘If it’s not the same
environment, all your simulations will be
trying to predict the stability wrong,’ he says. Simulating designs
threshold.’ allows the engineers to match up designs
with priorities to arrive at the ‘best
Paul Lutes, Hughes Christensen compromise,’ Cuillier says. He adds that
it’s vital to analyze bits to ‘see if what has
been done is matching with what you
simulated.’
The company also maintains a rock
database. ‘You need to be able to
understand the rocks properly to be able
Pierce, product engineer, directional says. And Smith does – it takes the design to destroy them,’ Cuillier says.
solutions for drill bits and services for process out to its lab, where it carries out Varel also uses SPOT, an acronym from
NOV’s Reed-Hycalog. tests to verify the information that IDEAS the French Simulateur Pour Optimisation
One of the details that becomes clear yields. These testers often run 16 hours a Trepan, which is the company’s
when examining used bits is that ‘wear is day to test cutters and inserts on various proprietary software program for
not linear,’ Murdock says. ‘A bit can go rock types. Under controlled pressures, designing the bit and determining ‘which
from slightly worn to completely worn Smith conducts a comprehensive series of cutting structure will be faster. It helps
very quickly.’ He estimates the company’s indentation and scrape tests you take the right decision,’
TReX bit line reduces that problem by to replicate the dynamics Cuillier adds. Varel upgrades
50% because the bits feature a between a roller cone or the software annually based
thermostable, self-sharpening, ultra wear PDC bits’ cutting on what the company
resistant layer on the cutting face of the structure and a specific learns; in-house
PDC cutter. TReX, launched in 2001, has rock. ‘The key is to programmers handle the
‘been an enormous boost for us in terms know what this cutter task. Laboratory tests are
of what we’ve achieved,’ he says. does with this rock,’ used to verify assumptions
The company says that single cutter Muren says. or concepts, keeping in
laboratory testing in hard granite showed Varel uses a platform mind that the objectives are
durability improved over 45% compared called Geosciences with to build numerical models.
with the best conventional PDC cutters Electric Log Analysis He says this gives the company
and says the test results were later proven software and an internally up-to-date simulation
in full-bit field tests. developed algorithm to make capabilities without going,
Smith uses the proprietary Integrated interpretation and build rock again, through the lab testing
Dynamic Engineering Analysis System characteristics to be used in drill phase.
(IDEAS) – which dates back to 1995 when bit design software. The goal, ‘Our core business is the capability
the software was created as a simulation Cuillier says, is to link between the to make a good analysis of the
tool to help understand the interaction porosity and rock type’s compressive application,’ Cuillier says. ‘If you’ve
between the rock and the bit – to design strength in order to simulate in the right done a good job of making a good analysis
and build its bits. The biggest
disadvantage of being in the bits game is
that ‘you could never see your product
working,’ says Chuck Muren, vice
president for Smith Bits Engineering.
IDEAS helps the company have a better
understanding of which bit to pit against
which rock. ‘This system tried to take the
guesswork out of this,’ he says, noting
that in the past, designing a bit often
involved guesswork or art.
With a library containing data on over
40 rock types, IDEAS may have started
out to provide details on how bits and
rocks will interact, but it has grown to
predict how an entire drillstring will
respond with different bits and rocks
based on the depth and trajectory of the
well plan. For years the industry didn’t
understand why a bit didn’t perform as
expected, Muren says. ‘We all guessed
what the bit should look like,’ he says.
IDEAS simulations can show whether a NOV Reed-Hycalog’s Pressurized Drilling Laboratory allows pressurized testing of bits
bit is appropriate for a certain rock and up to 171/2in diameter.
well plan, he says. ‘We’re not making ABOVE: Reed-Hycalog’s 83/4in MSR619 with SmoothTorque features, including gauge
presumptions about what this bit will do design and Torque Control Components, was selected in SystemMatcher to be run on a
in this rock,’ he adds. high torque motor in Prudhoe Bay, Alaska. The bit drilled the interval of 6307ft in a
‘Without that simulation tool, you’d single run, achieving the build and drop required at an ROP of 150fph, 17% faster than
have to put a bit down in the hole,’ Muren offsets.

34 OFFSHORE ENGINEER | may 2009 w w w . o f f s h o r e - e n g i n e e r. c o m

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oe_M_4_NP_p036_drillingbits 28/4/09 5:36 pm Page 36

DRILLING
‘The evolution of directional drilling the hole, and now we’re optimizing’ by
using a more complete process of
systems to rotary steerable systems evaluation, recommendation and
has pushed a lot of the behavior.’ optimization to deliver a complete
solution, he says. The complexity has
Chuck Muren, Smith increased, Glass says, with the industry’s
ability to drill directionally and enlarge
the hole. ‘It’s not just the bit you’ve got to
worry about. Now it’s the bit and the hole
enlargement tool,’ he says. It’s important
to ‘make sure one’s not compromising the
other.’
of the application, the job is done.’ called Direction by Design helps HDBS When it comes to hole enlargement,
Manufacturing the bit, he adds, is just select bits that meet the client’s criteria. Glass says the challenge comes to
execution. ‘You need to have better Steerability brings up its own issues. optimizing the hole enlargement
analysis, better planning, better When a directional well is planned, operation with the drill bit. ‘You could get
software.’ Cuillier says, it’s vital for the operator, a lot of vibration if the bit and the hole
the directional company and the bit enlargement tool are not balanced,’ he
A new direction designer to discuss adds.
Today, ‘bits have so much more power the plan from the As Murdock says,
available to them,’ Murdock says. He outset, even vibration will ‘wreck
notes that 63/4in motors have eight times though the drill everything. Those big
more torque and thrice the power of bit is the last shocks are enormous.
motors as those from the mid-90s. ‘Our drillstring They’re unimaginable.’
bits that used to be fine . . . don’t work item that is It’s important to make the
anymore’ because of power and torque selected. most of the energy that’s
demands, he says. ‘Everybody’s available while moving
About 20 years ago, Muren says, most depending on energy loss – such as
bits used offshore were roller cone, and everyone, and through vibration – to the
about two-thirds of the bits used offshore everyone’s depending rock instead of allowing it to
a decade ago were roller cone. Now, he on what’s at the front of remain in the drillstring, he says.
estimates that about 80% of the footage the hole – the bit,’ While some level of vibration
drilled offshore is done with PDC bits. Cuillier says. can be useful in terms of
‘The evolution of directional drilling With a rotary performance, too much can tear
systems to rotary steerable systems has steerable system, the apart a drillstring. ‘That was
pushed a lot of the behavior,’ Muren says. geometry of the gauge happening all the time, and people
Every rotary steerable system is different, counts, Murdock says. NOV didn’t understand why,’ Muren says.
which means different requirements for Reed-Hycalog’s SmoothSteer Now that vibration has been identified
the bits. ‘We spent a lot of time designing Gauge features a slightly as the culprit, he says, the company is
bits that would align with different tapered gauge that allows tilting, as designing bits to reduce the harmful
drilling tools,’ Muren says. opposed to regular gauges, which are vibrations.
Glass echoes this sentiment about parallel with the bit. To stop sudden ‘We do see a lot of that (vibration) in
designing for various steerable systems: changes in torque, NOV Reed-Hycalog the Gulf of Mexico,’ says Austin
‘They all work differently and one bit uses SmoothTorque. Omokwale, area sales manager for the
does not fit all.’ Some bits will work well The design process has evolved from an Gulf Coast for Hughes Christensen. In
for a push the bit steering method while intuitive design to relying on analytical developing its concentric reamer, the
others work well in a point the bit and predictive modeling, Glass says. ‘In company has invested in understanding
method, he says. Proprietary software the early stages, it was just try to stay in drilling system vibration and bit-to-
reamer weight transfer when the
concentric reamer cutting structure is
between 60ft and 200ft behind the bit. At
the Baker Hughes Experimental Test
Area near Tulsa, Oklahoma, Hughes
Christensen has been able to measure the
vibration from the bit and the vibration
from the reamer to determine how to best
match the bit to the reamer. After
applying the company’s current
technology in matching the bit to the
reamer in some Gulf of Mexico
applications, he says, ‘We’ve seen a
tremendous shift in performance. We’re
on the right track in terms of
synchronizing bits to reamers.’
Ian Thomson, North America
applications engineer for Hughes
Christensen, notes that whether drilling
The Smith IDEAS lab and (above) theSmith IDEAS PDC bit. though salt, or below it, or in other types

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DRILLING
‘There is not a perfect bit. instrumentation. When it happens it will
make quite a difference in performance
When you make a design, you because most bits are optimized for
try for a perfect compromise.’ surface conditions, ‘but that doesn’t mean
that’s what’s going on downhole,’ he says.
Bruno Cuillier, Varel Instrumentation technology is available
now but won’t likely be readily accessible
for the next three to five years, he adds.
And even as the technology has
improved, bit engineers still see problems
that they’d like to solve, such as stick-slip
issues.
of formations, the drilling has been 21/2in diameter, it can be incorporated into ‘I think that’s the single biggest killer of
smooth with no tool or string failure string tools such as motors or rotary tools,’ Murdock says. ‘We’ve been talking
when the reamer and bit are properly steerable systems, Murdock says. about stick-slip for years.’ The sustaining
synchronized. ‘We have successfully mechanism has no proven explanation, he
managed vibration levels in various The way it was says. ‘It’s such a killer, but we don’t fully
drilling environments,’ Thomson says. Over time, Muren says, PDC bits have understand why you get it. Just throwing
Hughes Christensen developed its evolved in terms of materials and design bits at a problem . . . is not likely to be a
Gauge Pro concentric expandable reamer geometries based on improved good way to solve the problem.’
because ‘we knew stability was an issue understanding of the entire drillstring. To be able to solve the problem, he says,
in the industry,’ says Steve Radford, Glass notes that PDC bits don’t look like you must know what problem you’re
GaugePro XPR project manager for they’ve changed much over the years, but solving. ‘We don’t want to design a drill
Hughes Christensen. Part of the stability that the technology behind them has bit to solve a problem with the stabilizer,’
comes from the gauge pad and improved dramatically. He says the focus Murdock says. Bit history, he says, is
stabilization pads, and the rest comes on PDC cutter development has shifted littered with bit designs and re-designs
from the cutter-profile design, he says. from impact resistance to abrasion that attempted to solve a problem caused
The company tested the tool, which they resistance. The focus in the 1990s was by another drillstring component. It can
say has half the moving parts and sealing mostly on the interface between the be difficult to find out what the actual
elements of other concentric reamers. tungsten carbide and the diamond layer problem is, he says. ‘We don’t have a
‘We’ve learned things along the way,’ to improve the impact resistance; the problem with the ability to measure data.
Radford says. solution came in the form of a non-planer But the capacity to make any sense of it,
The company made a late entry into the interface, he says. Since 2000, though, that’s the challenge.’
reaming market after spending many there have been more demands for better Drill bit companies have maybe
years on the project, Radford says, and abrasion resistance, given the types of shouldered unfair blame for problems,
that has been a double-edged sword: rock and the depths that need to be perhaps because their product leads the
favorite tools had been established. He drilled, Glass says. ‘Cutter technology has drillstring.
says Hughes Christensen knew of and grown by leaps and bounds in the last five ‘We’re used to being told, “your bit did
overcame problems that existed with years,’ he says. this”,’ Murdock says. ‘But bits are only
various tools, such as activation issues Murdock says: ‘In real drilling parts of the holistic solution.’ OE
and unstable cutting structure layout. applications, even though you’re pumping
The company took the next step. ‘We mud in, the cutters still get very hot.’
proved how you match a pilot bit to a Improving the thermal mechanical
reamer,’ Radford says. ‘Besides having an integrity of PDC cutters has been one
inherently stable reamer ourselves, we goal. ‘For years, you’d look at cracked
know how to make our pilot bit to reduce diamonds and you’d think it was impact
vibration on anybody’s reamer.’ damage. But it wasn’t,’ Glass says.
Software that simulates BHAs can be Tungsten carbide and diamond expand at
useful in the ‘what-went-wrong’ inquiry. different rates under the heat of friction,
Varel’s Drilling Impedance algorithm and so they may crack at high
matches rock hardness against the temperatures, he says. The industry has
drilling impedance to determine where developed testing methods to identify and
the vibration originated. ‘You can run an mitigate thermal mechanical
analysis to see if the problem is coming degradation. Glass says HDBS has
from the bit or if it’s coming from developed substantial proprietary
something above the bit,’ Cuillier says. enhancements and improvements in
Right now, this can be done after the run, thermal mechanical integrity of PDC
but Varel is working on the ‘dream’ of cutters.
providing that information during the ‘Cutter technology has advanced so far
run. Cuillier estimates that service in the last five years that the cutters now This Varel 912VRT bit
should be available within two years. ‘We outlast the body material,’ Glass says. has been used offshore
are focusing a lot on that right now.’ HDBS is working to develop a means of Angola in waters of
NOV Reed-Hycalog uses a dynamics improving the life of the matrix body of 4000-5000ft to drill Micocene sand
analysis tool called BlackBox that records PDC bits. The answers likely lie in units interbedded with claystone layers
lateral and torsional vibration at very materials development and using an RSS point the bit system.
high frequency. BlackBox, commercial for computational fluid dynamics, he says. Horizontal drain in some cases was as long
two years, can be used in multiple Glass believes the next big leap for drill as 3600ft with challenging directional
locations along the drillstring. With a bits will come with at-bit control in the large sand layers.

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MEDITERRANEAN
Water depths in the pipeline’s international
subsea segment between Algeria and Sardinia are up to 2880m.

Galsi gas line gathers momentum

Preparations for the challenging new Galsi pipeline between Algeria and Italy, which will bring gas to Sardinia for the first
time and will in places involve pipelaying in up to 2880m of water, were among the regional talking points at the recent
Offshore Mediterranean Conference (OMC) in Ravenna, Italy. John Sheehan reviews this and other conference highlights.

P
artners in the Galsi pipeline project gas from Algeria to Italy via Sardinia. take gas to Sardinia for the very first
are gearing up to issue invitations to The project partners will first have to time, is currently undergoing a complex
tender for the engineering, overcome several challenging hurdles, permitting process, which the partners –
procurement and construction of the however, before gas can flow in 2014. among them Sonatrach, Edison and Enel
pipeline, which will take 8bcm/year of The Euro3 billion project, which will – hope will be concluded towards the end

Congo campaign takes Drillmec offshore Angeli said Drillmec was already in discussions about
selling the rig to Brazil’s Petrobras, which was looking at
Italian drilling equipment supplier Drillmec has made its the equipment for offshore operations.
first move into the offshore market, with its hydraulic The HH series developed from a simple hydraulic rig for
hoist (HH) series drilling equipment seeing action with water wells and entered the land-based oil & gas drilling
Perenco in an offshore Congo drilling campaign. market in 1993.
More than 70 HH series automatic rigs are being used Now, with the rig making a new move into the offshore,
for land-based drilling operations around the world, but Angeli believes it will prove competitive in this market
the offshore deal with Perenco is a first for Drillmec, the because all operations can be carried out by one or two
company’s sales director Stefano Angeli told OE at OMC workers.
2009. ‘We have sold one of the rigs to ‘Fast moving features provide an
Perenco for work in the Congo, efficient tool to the drilling contractor,
although our experience is limited so enabling them to drill quickly and
far. We think this system can work safely,’ said Angeli.
very well offshore because one ‘About 70-80% of drilling operations
advantage is that it weighs 30-40% less can be carried out without people on
than conventional drilling equipment. the rig floor, which is another big
This is a big advantage.’ safety advantage.’

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MEDITERRANEAN
‘Effectively there are only two or three contractor by the end of the year,’
Perrone said.
contractors who can carry out the He suggested that the original timeline
pipelaying.’ for the project had slipped and that
construction work would now likely be
Arcangelo Perrone, Galsi project manager carried out from 2012/13, with first gas
anticipated in 2014.
‘This is a normal period taking into
account construction and
commissioning,’ Perrone added. He said
that the importance of the scheme was
highlighted when it was included as one
of 2010, allowing construction work to us because we’re near to obtaining the of the five priority assets for the
begin in earnest. permit for construction. This is development of the Trans-European
Once construction begins, the pipeline fundamental because without this energy network.
will run across the abyssal plane of the authorisation it is impossible to continue The pipeline is being built by the Galsi
Mediterranean Sea from Koudiet Draoche with the project. All our efforts are partnership, which was formed in 2003 by
in Algeria to Porto Botte in the south of channelled into obtaining the permit.’ Algerian national oil company, Sonatrach,
Sardinia in water depths up to 2850m. Perrone hinted at the complex nature of which holds a 41.6% stake, Edison
From there it will run on-land the length the permitting process for the pipeline, (20.8%), Enel (15.6%), Sfirs, a financial
of Sardinia to Olbia before crossing with authorisation required from two institution (11.6%), and local utility
subsea to landfall at Piombino in Tuscany. different government ministries, two Gruppo Hera (10.4%).
Galsi poject manager Arcangelo different regional authorities, Perrone said: ‘If you look at the
Perrone told OMC 2009 delegates in 41 municipalities, as well as railway composition of the partnership,
Ravenna that the project had significant companies and other interested parties. Sonatrach is the seller and the other four
technical, environmental and permitting ‘This is a lot of work,’ he said, adding are the buyers.
hurdles to overcome and that a crucial that a bidding process would shortly get ‘The partnership has been set up in
stage has now been reached. under way for some parts of the project, such a way as to make sure the project is
‘We are now at an important stage of especially the offshore construction and completed. An agreement was signed
the project and have finished the design the pipe supply. with Snam Rete Gas which will manage
work, which was carried out by JP Kenny. ‘We want to start in the second quarter the whole of the Italian section from
‘This year is the most important year for this year so that we have a selected Sardinia to Tuscany. This is a very

How the Galsi gas line, now unlikely to be laid before 2012-13, will fit into the Mediterranean scheme of things. MAP COURTESY INFIELD

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‘A key factor in rebuilding

MEDITERRANEAN
important point to start the permitting
activity.’
Under the terms of an agreement
confidence in the gas
signed in September last year, Galsi will market and easing supply
develop the engineering (FEED) and
obtain the permits and authorisations in
concerns is LNG.’
coordination with Italian gas distribution Roger Tucker, BG Group
company Snam Rete Gas.
Galsi will also be responsible for
building the international section of the
pipeline and managing the gas transport
activities from Algeria to South Sardinia.
Snam Rete Gas will build the Italian
national section of the pipeline starting
Riding on the LNG wave ‘A key factor in rebuilding
confidence in the gas market and
from the south of Sardinia up to While the liquefied natural gas (LNG) easing supply concerns is LNG,
Piombino and subsequently manage the industry has seen significant growth something very important to BG,’
gas transport activities for this section. over the past decade, there will be added Tucker. ‘The EC believes that by
even more rapid expansion over the 2020, as much as 30% of gas supply
Pipeline route selection next five years with global output into Europe could be in the form of
Gas will initially be shipped in a 48in capacity expected to reach 380 million LNG. LNG enhances security of
pipeline from the giant Hassi R’Mel field tonnes per annum by 2015. supply by increasing the potential
in Algeria to a 99MW turbo compressor Much of this LNG will be imported diversity of supply sources. Import
station on the coast at Koudiet Draoche. into Europe and Roger Tucker, facilities provide the flexibility to
From there it will head offshore for 284km BG Group’s senior vice president for attract incremental supply at times of
in a 26in line, designed to withstand Europe, told OMC 2009 delegates in supply interruption. LNG is well
pressures up to 186barg and temperatures Ravenna that his company, as one of suited to meet peak or variable
of 60ºC. the pioneers of the LNG movement, demand.’
‘The depth of the water reaches 2850m will be in a strong position to Tucker said the LNG effect is likely
and at certain points 2880m,’ noted capitalise. to be significant in the Mediterranean
Perrone. Addressing the conference’s opening region because between them Iberia,
‘This is the first pipe to be laid in this session, Tucker said BG had been ‘one Italy, the Balkans, Greece and Turkey
water depth, taking into account the of the first riders of the LNG wave’ accounted for some 71% of the LNG
diameter,’ he added. ‘The extreme water that began in the early part of this imported into Europe last year. ‘While
depths and large diameter requires a pipe decade. ‘This has given us real new regas capacity close to Europe in
with very large wall thickness to strength as a global LNG company 2009/10 will be heavily weighted
withstand external pressure. with re-gas and liquefaction facilities, towards the UK and northwest
‘The 26in pipeline has very thick walls either in place, under construction or Europe, there will be two major new
of 37.1mm and this means that there are in planning in America, Africa, import facilities open for business in
not a lot of companies able to make this Europe and most recently in the Mediterranean region during the
kind of pipeline. Effectively there are Australia.’ course of this year.’
only two pipe mills which have so far Tucker said he believed the reliance He highlighted the GdF Suez/Total
confirmed the capacity. Other mills have on imported gas into Europe would terminal near Marseilles, and the
declined as they would require upgrading continue for the foreseeable future. Terminale GNL Adriatico Isola di
or re-tooling.’ ‘During the transition to a low Porto Levante off the Rovigo coast of
When it comes ashore in Sardinia, the carbon economy, the reliance on Italy (see map), which is operated by a
pipeline will be linked up to a metering natural gas will of course increase. consortium of ExxonMobil, Qatar
station at Porto Botte. From there gas will One quarter of all energy consumed Petroleum and Edison Spa. ‘Looking
travel in a standard 48in diameter in the EU today is gas – 60% is further ahead other projects are in
pipeline with a design pressure of imported and that is likely to rise the pipeline, including BG’s planned
78.8barg and design temperature of 50°C. year-on-year. construction of an import terminal at
It will run 272km from south to north ‘In 2000 the then EU 25 imported Brindisi in southeast Italy,’ Tucker
Sardinia to a compressor station at some 221bcm of gas , within five years added.
Olbia. of that date the figure had risen by ‘More generally at BG we expect two
The Sardinia to Tuscany pipeline one third to 298bcm and by 2030 that important developments over the next
section will have a design pressure of figure could rise to some 512bcm, of decade or so,’ he noted. ‘A rebalancing
200barg, temperature capacity of 60ºC and which 84% will be imported.’ of LNG supplies in the Asia Pacific
will be 32in in diameter. It will run for Tucker said there was an ‘urgent and Atlantic basin with Asia Pacific
275km offshore in water depths up to 850m. need’ to restore natural gas as a taking only slightly more volumes
The 32in pipeline can be produced by a reliable energy source for the future. than the Atlantic basin by 2020. We
number of mills in Europe and Japan. Increased storage capacity should be also see a doubling of the LNG
put in place in key parts of the region volumes coming in to Europe between
‘Strange’ route and potentially very small additional 2010 and 2020, with the total rising to
Perrone explained that the route for the investments could be made to increase about 150mtpa.
pipeline had been difficult to settle on efficient use of existing pipelines, ‘These developments will clearly
because of environmental constraints such as reverse flow in key pipelines make LNG a far more important
and the difficult geography along the which could link the Balkans to security of gas supply component in
seabed. ‘We have therefore planned rather volumes of LNG imported to Greece Europe and the Mediterranean
a strange route, but this is the only and to Turkey, he explained. region,’ Tucker concluded.

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MEDITERRANEAN

Gene genie over and around a UK onshore field, and

marine sediment samples taken over
PetroGene analyses hydrocarbon
seepage signatures. Specifically, it
EnviroGene’s chief technology officer,
the technology is highly sensitive and
EnviroGene, a Welsh molecular and around an offshore field located in quantifies genes found in soil microbes capable of detecting seepage at very
diagnostics company which provides the Barents Sea. In both cases, said known to metabolise the migrant low levels, and well below the minimum
environmental and petroleum E&P EnviroGene, the technology – used in petroleum; as such, these microbes are detection limits of conventional
survey solutions, told OMC 2009 conjunction with seismic surveys to proximity indicators for subsurface geochemical survey tools.
delegates that its DNA-based oil & gas help rank drilling targets and thus save accumulations. The abundance of the The company is seeking partners for
exploration technology had achieved on exploration costs – successfully target genes and their geo-spatial further field validation. It filed for a
‘positive results’ in recent field identified the prospectivity and, in the relationships are used to forecast the patent on the PetroGene technology in
validation trials. The trials of PetroGene Barents Sea case, correctly profiled the location and extent of subsurface July 2007 and for an enhanced
involved analysis of soil samples taken field closure. accumulations. According to Rob Sleat, methodology in March this year.

possible route to reach Tuscany,’ Perrone Perrone said the four landfalls had near them on the seabed. ‘At Porto Botte
said, adding that some 10,000km of proved the most challenging parts of the there is a system of Posidonia and a slope
surveys were carried out to map the project as they are steeply sloped and all of from 5m in depth down to 40m,’ Perrone
pipeline’s path. them have Posidonia seagrass growing explained. ‘Posidonia is very protected in
Italy and it has been a challenge to find a
solution to reach landfall.
‘In the north of Sardinia at Olbia there is
also a serious slope – a vertical area which
is also a very sensitive environmental area.
Construction work will have to take into
account the constraints presented by this
particular area. Even now we’re discussing
with the environment ministry how to find
solutions to these problems.’
Fugro is currently in the process of
putting the finishing touches to a detailed
$25 million marine survey expected to
identify the best route for the pipeline. This
project, which also involved nearshore
surveys for the four landfalls, included a
geophysical and hydrographical survey
carried out by Fugro’s Geo Prospector
vessel with the aid of an autonomous
underwater vehicle. Offshore seabed
geotechnical investigations were also
conducted by two vessels, including
Fugro’s Bucentaur.
Studies are currently ongoing on
Posidonia and on the Sulcis-Iglesiente-
Guspinese zone, a ‘site of special scientific
interest’, on the pipeline route.

Pipelay challenges
When construction does eventually get
under way, the Galsi pipelines will be
installed using both the J-lay and the
S-lay methods, although Perrone believes
contractors will be pushed to their limits to
get the job done.
‘Effectively there are only two or three
contractors who can carry out the
pipelaying,’ he said, listing Allseas,
Heerema and Saipem as the key contenders
for this work. ‘The contractors will
probably have to upgrade their equipment
to operate in such deep water,’ he added.
‘We will require some intervention after
laying in very deep waters,’ said Perrone.
One of the possibilities was rock dumping
but there is no system currently available
that can accurately place rock in these sort
of water depths, he said. ‘They can work
up to 1000-1500m. This means we have to
increase capability. Similarly pipeline
repair and retrieval equipment will have to
be upgraded.’ OE

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ROVS
‘The nature of small ROV service is short-term, callout work,
since it is quick and simple to mobilize.’
Bob Christ, SeaTrepid

‘Almost disposable’ ROVs

earning respect offshore
Sometimes smaller is better: so say the sellers of micro and mini ROV services, who
maintain that the smaller machines can do many inspection and light intervention
jobs faster and cheaper than their work class cousins. Russell McCulley reports.

A SeaBotix LBV 200L with

a grabber and ultra-bright
external LEDs.

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‘Small ROVs are suited for confined access inspection and

ROVS
areas where work class vehicles can’t or won’t go.’
Ian MacDonald, Buccaneer

advantages, says Bob Christ, president of chain hawsers on FPSOs for inspection of

I
f some offshore energy operators are
skeptical about the capabilities of SeaTrepid International. ‘Some companies the turret mooring chains,’ he adds. And
micro and mini remotely operated are using work class ROVs just for taking energy companies are starting to use
vehicles (ROVs), it’s understandable: some pictures,’ he says. That means an small ROVs more often for basic hull
of these things are downright cute. extensive support network, including a inspections (including underwater
Weighing in at as little as 4kg, some of the vessel, crew and relief skipper, must be in inspection in lieu of dry docking, or
lithe swimmers appear, at first glance, place. ‘All this, just to take a picture,’ says UWILD), quick inspection of propellers or
more like toys than scaled-down versions Christ, who worked at Oceaneering before thrusters, and caisson inspections. ‘We've
of sturdy underwater workhorses. But co-founding VideoRay and, later, had VideoRays doing all these, where
smaller ROVs, long used for port security, SeaTrepid. ‘My quest after Oceaneering either it would be physically impossible to
hull inspection and search and rescue was to see just how small and cheaply we get a big vehicle in, or just potentially
operations, are gaining credibility in an can go and still get the job done,’ he says. dangerous,’ MacDonald says.
industry looking to cut costs and improve ‘The nature of large ROV service is long- Still, he says: ‘It has been difficult
safety wherever possible. term contract work due to the weight, getting the offshore market to accept the
Granted, there are limits to what they expense and complexity of mobilizing small vehicles, for a variety of reasons.
can do. Micro ROVs – generally, those such a huge work package. The nature of The mindset that “it’s just a toy” took
under 10kg in weight – and mini ROVs, small ROV service is short-term, callout some overcoming, but a few forward-
which typically range between 11kg and work, since it is quick and simple to thinking people have helped break that
25kg, can only go so deep. ‘The limitations mobilize.’ and open the views of many to what might
that we have right now in the oil & gas Quick deployment can be critical after be possible.’ The potential cost savings
market are depth capability,’ says Brian an accident or natural disaster. SeaTrepid have certainly helped change attitudes, he
Luzzi, sales and marketing coordinator for conducted some 425 platform inspections says: ‘As an example, a ballast tank
micro ROV manufacturer VideoRay. ‘We in the immediate aftermath of Hurricane inspection with the tank drained and
can go to 300m, or 1000ft. But we will be Ike in 2008, Christ says, surveying as scaffold and rope access inspectors can
pushing past that very shortly.’ many as three platforms in one day. ‘We take many weeks and many men. The
Mini ROVs can reach depths of 600m or were fast,’ he says. ‘We’d pull up to the same inspection by a small ROV takes
more, says Sean Newsome, sales manager platform in a DP vessel, or fly out and do about a week, and usually only two men:
for SeaBotix, which manufacturers the the work right from the platform.’ That the pilot and the inspector.’
LBV mini ROV system and a popular portability is one of the vehicles’ top In the offshore market, Newsome says:
hybrid ROV/crawler. At those depths, he selling points, says Luzzi. ‘They’re ‘Traditionally people have thought that
says, ‘currents are obviously an issue’. extremely easy to use, and they’re you have to have a very large system to do
But they can usually be overcome with the portable,’ he says. ‘You can move it some of the inspections at the depths that
use of a clump weight attached to the anywhere on the rig. You’re not locked they’re doing. When, in fact, they are
umbilical 20-30m behind the ROV and into a work station with a huge chair set finding that they can do a lot of these
suspended in the water column. ‘That’s a up behind a bank of screens with inspections with smaller vehicles that only
very common way to do inspections for joysticks.’ Micro and mini ROV systems require one or two people to operate, at a
long periods in deep water,’ he says. typically don’t require a highly trained fraction of the cost of work class vehicles.’
Working within their depth restrictions, pilot to operate them. ‘This is a system The cost savings extend to situations
however, small ROVs can offer that you can teach pretty much anyone on where a mini ROV can be used in place of
considerable cost, safety and time the rig how to operate,’ Luzzi says. ‘The divers, he says. ‘And that’s not to take away
learning curve is very slight. You don’t
need a huge support system, a crane or a
team of divers. And that is very attractive
to oil and gas operators.’
Another attraction is maneuverability:
micro and mini ROVs can be sent into
spaces that are too confining or dangerous
for big ROVs or divers. Small ROVs are
suited for ‘confined access inspection’
such as ballast tanks, says Ian
MacDonald, managing director of
Buccaneer, which supplies VideoRay
vehicles in the UK. ‘And areas where work
An Outland 1000 mini ROV from Outland class vehicles can’t or won’t go,’ he says. A range of micro and mini ROVs used by
Technology after a SeaTrepid oil spill ‘Most work class operators won’t work SeaTrepid for US Coast Guard procedures
inspection in the Gulf of Mexico. above 15m.’ Tight spaces include ‘the trials in San Pedro, California.

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oe_M_4_NP_p046_ROVs 28/4/09 6:42 pm Page 46

ROVS
‘Our mission is to create ‘We can go to 1000ft.
more portable systems But we will be pushing
that can do big jobs.’ past that very shortly.’
Sean Newsome, SeaBotix Brian Luzzi, VideoRay

from divers. We’ll never replace divers; useful in the oil & gas region,’ he says. ‘If
we’re not in the business to do that. The you’re trying to plug something into
idea is to use ROVs in those situations to something else on the bottom, you now
preclude the need to put a diver into a have two eyes on the object so you can
hazardous environment, or to investigate look at it from two perspectives and make
the area and confirm the situation prior to sure everything is lined up.’
putting the diver in the water,’ he says. Christ says SeaTrepid is using small
SeaTrepid’s micro ROV package, which ROVs equipped with cavitation wands to
includes two fully redundant ROVs with clean marine growth and deposits on
parts and ancillary equipment, rings up diffusers at the ExxonMobil-operated
for under $5000, Christ says. ‘Economics Hoover Diana deep-draft caisson vessel in
are driving a lot of our business,’ he says, the Gulf of Mexico ‘at a fraction of the
‘but also speed, and the fact that we can cost of a work class ROV’. Small ROVs are
get inside the structure.’ now able to stream IP video captured on
Luzzi says VideoRay ROVs are often camera to the surface and to perform
used to accompany divers on jobs for other tasks once exclusive to much larger
safety and quality assurance. The vehicles vehicles.
also perform well in rugged ‘It’s often a case of making technology
environments, he says, such as a recent used elsewhere, or in a different field, fit a
Black Sea operation where a VideoRay Pro specific task, rather than re-invent the
3 XE GTO, a micro ROV that can travel at wheel,’ says MacDonald. ‘A good
speeds up to 4.1 knots, was used to scan for example would be the multibeam sonar
wellheads in an offshore natural gas field now on VideoRay. A few years ago,
and to get a close-up view as a tripod was multibeam was something only for the big
lowered onto wellhead conductors. ‘The work class ROVs, but now technology has
VideoRay worked great on the rig because moved on.’
it’s extremely robust and rugged. All the The push toward offshore renewable
materials are kind of impervious to the energy could present opportunities for
oil and muck and grime,’ he says. At Technicians lower a VideoRay Pro3 GTO small ROV suppliers. ‘We’ve had some
around $50,000, including sonar, the into an FPSO turret riser tube in the South success with the renewable guys, but a
system ‘is almost considered disposable’. China Sea. long way to go yet,’ MacDonald says. ‘The
The makers of small ROVs are systems are a really good fit, due to the
increasingly looking for ways to expand working load on the umbilical. We make a portability and ease of use.’
the repertoire beyond mere observation cutting option for our vehicle that will cut ‘A lot of people have designed some
and into light intervention. ‘Our mission just about anything you stick in it that’s really wonderful mechanisms for
is to create more portable systems that 20mm or less, with the exception of steel.’ harvesting energy from the oceans,’
can do big jobs,’ says Newsome. ‘A lot of And the vehicles make good companions Newsome says. ‘But they may not really
people are not aware that you can lift up to for larger ROVs in appropriate water understand how hazardous and corrosive
100kg off the bottom using our vehicle. depths. ‘It will fly out of a tool skid that environment is. So we know there’s
Our standard vehicles have a 45kg underneath the larger ROV, which is very going to be a need for remotely operated
vehicles in these environments. They’ll be
needed to do inspections – the biofouling
that is going to occur on a lot of that
equipment is going to surprise some of
the people who haven’t yet tested actual
applications.’
More immediately, a recently more
frugal offshore energy business could be a
boon for micro and mini ROVs. ‘The funny
thing about the oil & gas industry is
there’s an attitude that if you’re not
spending a lot of money, you’re not
credible,’ says Christ. But that’s changing.
Left to right: Deploying a VideoRay micro ROV at the Sakhalin II LNG plant and oil ‘This may be the first time in the history
export terminal; a pilot controls a micro ROV at a Black Sea jackup inspection; and a of this industry where people are being
VideoRay ROV approaches an offshore work site in the Black Sea off Turkey. cost-conscious.’ OE

46 OFFSHORE ENGINEER | may 2009 w w w . o f f s h o r e - e n g i n e e r. c o m

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OE_M_4_Belzona_QP.indd 1 29/4/09 18:50:53
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OE_M_4_WM_Cablesafe_FP.indd 1 24/4/09 17:40:16

oe_M_4_p049_FLNG 28/4/09 5:56 pm Page 49

FlexLNG expects to take

delivery of the world’s first
floating liquefaction unit,
the LNG Producer, in 2011.

Commerciality
in the crosshairs
With the oil & gas industry getting increasingly comfortable
with the concept, floating LNG is now coming into its own.
Meg Chesshyre updates OE’s files on FLNG developments.
four ready for FEED. Some 80-85% of the

C
ommercialisation of the world’s first
floating liquefaction unit, the LNG capex is identical from unit to unit.
Producer, is just around the corner, According to Fjeld, the LNG Producer
FlexLNG chief executive Philip Eystein concept can make stranded gas fields
Fjeld told IQPA’s first ‘Global Floating down to a size of about 0.5tcf economical,
LNG Summit’ in London this spring. even smaller if NGL or oil can contribute
The Norwegian company has four firm to project economy. By using the proven
turnkey orders in place with Korea’s nitrogen expander liquefaction cycle,
Samsung Heavy Industries for LNG hailed as the most robust and flexible
Producer hulls using the SPB LNG liquefaction technology in use in the LNG
containment system. The units, for industry, the LNG Producer can source
delivery from 2011 onwards, each have an gas from numerous potential offshore
individual liquefaction capacity of locations worldwide where natural gas
1.7-1.95mtpa of gas, depending on the today is either left stranded or is being
specification of the gas. flared, he said. The concept is currently
Additionally, an EPCIC contract under consideration for projects off
was signed with Samsung last year for Nigeria and Papua New Guinea.
the world’s first floating liquefaction The LNG Producer is classed by DNV as
unit. a floating offshore terminal, with 20 years
The company, established in 2006, has on station maintenance. With
carried out about 300,000 engineering accommodation for 120, which can be
hours so far both on a generic FLNG boosted to 150 during peak maintenance
design, and also on adjusting and periods, it has two, totally separate,
adapting it for specific fields. It has process trains and offers storage
carried out field specific adaptations for capacities of 170,000m3 (LNG) and
five live cases, one through to FEED and 50,000m3 (condensate LPG). Fjeld puts
oe_M_4_p050_FLNG 28/4/09 5:56 pm Page 50

FLNG
months, primarily from Qatar, Fjeld sees larger FLNG design. There was also the
a shortage of FLNG projects longer term. opportunity for re-use, and the units
‘We’ve actually seen as strong an appetite could be built using existing shipyard
for FLNG projects from 2012 onwards infrastructure.
today, as we saw six or 12 months ago.’ He There was a consensus on the benefits
said that there had been very few FIDs of medium-sized units in the subsequent
(final investment decisions) in the last discussion. Session chairman William
two to four years and that the pipeline did Wayne, general manager and COO of the
not look strong going forward for the next Society of International Gas Tanker &
SBM has teamed up with Germany’s Linde 12-18 months. There would be a lot of Terminal Operators, commented: ‘From
to address the FLNG market. LNG in the market 2009/2010, even the panel we seem to be getting the gist
2011/12, but not in the longer term. that 1.5, 2, maybe 2.5mtpa is the sweet spot
unit costs in the region of $550-700 per Fjeld made the point that bigger was for these plants.’
ton. not necessarily better. He said that the Leon Harland, director LNG FPSO
Although large volumes of LNG are economic threshold for a medium-sized development with SBM Gas & Power, told
coming onstream in the next 12-24 FLNG unit was 1tcf versus 2-4tcf for a the conference: ‘We see floating LNG to be
very important for our future.’ SBM has
been developing its own floating LNG
hose technology and hopes to qualify an
18in internal diameter floating LNG hose
in the next two months including all the
associated kit.
SBM also has an ambition to provide
floating LNG units on a lease and operate
basis. Recognising that it lacked LNG
experience, it has teamed up with Linde
in Germany, and with its partner
developed and completed a generic FEED
in October last year.
FlexLNG’s Fjeld said that the industry
was getting increasingly comfortable
with the FLNG concept. ‘Some companies
are even regarding FLNG as proven even
though it is two years away from the first
one actually floating out of the yard,’ he
noted. The current challenges were more
related to how to structure a project – how
to deal with the inherent risks in the
project, who carries them, how is it
financed, what happens of things go
wrong? The push over the next 12-24
months would be on how companies get to
a position where they are actually ready
to execute a project in terms of structure
and from an overall commercial
perspective, added Fjeld.
Stewart Elliott, managing director of
Energy World Corporation, said that his
company, which had provided electricity
in Asia for many years, was moving into
the gas and clean fuels area. ‘The world is
crying out, and I think that is what this
conference seems to be missing, that we
should protect the astmosphere. LNG is
one of the cleaner, greener fuels that we
can use while we switch over to anything
else, and yet we seem to be talking more
and more about what we are going to do
rather than actually getting on and doing
it.’
Elliott said his company had equipment
on order for the first modular LNG plant
in Indonesia, and that there was interest
in putting it on to floating systems to
develop some of the stranded gas fields in
Southeast Asia. He also called for an
opening up of the market to allow access
to LNG for smaller power stations. OE

50 OFFSHORE ENGINEER | may 2009 w w w . o f f s h o r e - e n g i n e e r. c o m

OE_M_4_NP_Flour_FP.indd 1 29/4/09 18:48:15
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oe_M_4_NP_p053_shipyardsv2 29/4/09 5:23 pm Page 53

SHIPYARDS
Yards cruise on
back orders
Shipyards remain busy but warning signs of a slowing market abound. Asia
Pacific editor John Mueller reviews the current state of play among the
region’s rig and vessel builders.

T
he backlog of orders placed in construction of the hulls of two more
previous years continues to fuel newbuild jackup drilling rigs, their sixth
shipyard fabrication activity. and seventh, for Dubai-headquartered
However, renegotiation of several jackup MENAdrill, an initiative of First Energy
contracts by Seadrill at two Singapore Bank of Bahrain. Noble Denton,
yards, termination of a deepwater MENAdrill’s partner, is providing project
semisubmersible drilling rig by Scorpion management for the pair of Friede and
Offshore and cancellation of a support Goldman (F&G) Super Mod 2 design rigs,
vessel by Lewek Shipping, coupled with valued at $364 million in total. On
substantial financing problem completion in 3Q and 4Q 2010,
encountered by PetroMena for ultra respectively, they will be marketed for
deepwater semis under construction at operations in the Middle East, North
SembCorp Marine, underscore the Africa and South Asia regions.
challenging economic climate. MIS also has a letter of intent from
Still, positive signs are in evidence as Arabian Drilling Company of Saudi
witnessed by Swiber continuing to invest Arabia confirming a $5 million award to
in large construction barges, Sembawang refurbish ADC jackup Arabdrill-08,
Shipyard gaining favoured customer scheduled for completion mid-year, in
status for LNG carrier work and Strategic preparation for a contract with Khafji
Marine opening a new yard in Vietnam. Joint Operations. MIS also has a
refurbishment contract with Saudi
Jackups Aramco for the jackup drilling rig SAR
Maritime Industrial Services (MIS), based 201, to be completed by 3Q 2009.
in Sharjah, the UAE, has begun Sinopec Shanghai Offshore Petroleum

Pictured at the recent ‘favoured customer’ signing ceremony in Houston are

BG LNG Services’ VP marine operations, Americas, and global LNG shipping
Marc Hopkins (left) and president Allyn Risley, with Ms Wong Lee-Lin, Sembawang
Shipyard’s executive director.

w w w . o f f s h o r e - e n g i n e e r. c o m OFFSHORE ENGINEER | may 2009 53

OE_M_4_AOS.indd 1
oe_M_4_NP_p054_shipyardsv2 29/4/09 5:24 pm Page 54

SHIPYARDS
Left to right:
Development Driller
III; PetroRig I; and
Island Innovator.

Exploration & Development has had first delivery of the jackup drilling rig Maersk Amendments to the four jackup
steel struck for an as yet unnamed Resolve from Keppel Fels (KFels) in contracts involving PPL and KFels
newbuild jackup hull at PPL Shipyard in Singapore. Designed for North Sea postpone until delivery all remaining
Singapore. operations, it is the third of four such milestone payments for the second units
KSAM2 Petrodrill Offshore, a joint high efficiency units ordered from the to be built at both yards and revise the
venture led by Singapore-based KS yard by Maersk. milestone payment schedule for the first
Energy Services and Saudi-based Amwal Aban Singapore has collected its two units.
Al Khaleej and MIS, has had the jackup newbuild jackup Deep Driller 8. The KFels Scorpion, through subsidiaries
KS Endeavour hull loaded out at MIS’yard Super B class rig is the fifth to be Scorpion Freedom and Scorpion
in Sharjah, UAE. The F&G Super Mod 2 completed for Aban by the Singapore yard Deepwater, has secured financing for its
design rig, 30,000ft drilling depth rated since 2006. remaining construction payments on the
and operable in a 300ft water depth, is Seadrill Jack-Ups and KFels have LeTourneau Super 116 jackup drilling rig
80% complete and ahead of schedule with agreed to continue building two jackup Offshore Freedom and a new credit facility
delivery in 1Q 2010. drilling rigs on revised and mutually totalling $169 million. Offshore Freedom
COSL has taken delivery three months beneficial terms. The contract value of was nearing completion at Lamprell
early of the jackup COSL Confidence from the two jackups is $420 million. Energy’s Sharjah, UAE, facility as OE
PPL Shipyard. The Baker Marine Pacific Seadrill and PPL Shipyard have also went to press.
Class 375 design rig, capable of drilling to agreed to revised terms on two jackup Scorpion Intrepid, a Scorpion Offshore
30,000ft in 375ft water depths, will go into drilling rigs ordered by Seadrill in June subsidiary, has taken possession of the
service in Bohai Bay, China. 2008 whereby the contract value for both jackup drilling rig Offshore Intrepid, built
Denmark’s Maersk Drilling has taken remains the same at $430 million. by Keppel AmFels, the Keppel O&M
subsidiary in Texas. The last in a series of
five LeTourneau Super 116 jackups
commissioned by Scorpion in 2005,
Offshore Intrepid has been chartered by
Odfjell Drilling Services for operations in
the Arabian Gulf.

Semisubmersibles
Gander Drilling, a wholly-owned
subsidiary of SeaDragon Offshore, has
engaged Jurong Shipyard (JSL) to
complete a Moss Maritime 10,000ft water
depth rated harsh environment DP3
drilling rig at a cost of $247 million, and
secured an option for an additional unit.
The semi’s six-column bare-deck hull,
built in a Russian shipyard and expected
to arrive in the 2Q, is scheduled for
delivery by JSL by end 2010 and
contracted to Pemex for five years.
Noble Drilling (Nederland) has awarded
Keppel Fels Brasil, through BrasFels, a
contract to complete a 10,000ft depth rated
DP2 semisubmersible drilling rig, the
Noble Dave Beard, to be completed in 4Q
2009 for operations offshore Brazil.
Ensco International has taken delivery
of the second in a series of seven
deepwater semi-submersibles to be
constructed by KFels. The Ensco 8501, an
8500ft water depth capable drilling rig
upgradable to 10,000ft and able to drill to
35,000ft, has been chartered by Noble
Energy and Nexen Petroleum for
operations in the Gulf of Mexico.

54 OFFSHORE ENGINEER | may 2009 w w w . o f f s h o r e - e n g i n e e r. c o m

OE_M_4_OffEuro_FP.indd 1 24/4/09 13:39:58
oe_M_4_NP_p056_shipyardsv2 29/4/09 5:24 pm Page 56

SHIPYARDS
Seadrill has taken delivery of the rig Island Innovator, a Global Maritime scope includes installation of four
$510 million newbuild 10,000ft depth rated GM4000-WI design built for North Sea modules and modification of the topsides
ultra-large semi West Eminence (pictured operations. The rig, with DP3 and coiled and turret and is scheduled for
below) from the Samsung Heavy tubing capabilities, was constructed at completion in early 2010
Industries (SHI) shipyard in South Korea. the Cosco Zhoushan Shipyard in Sevan Marine is negotiating with
The drilling rig is under charter to Nantong, China. Jiangsu Hantong Ship Heavy Industry
Petrobras for five years and will go into Seadrill has taken delivery of the shipyard in China concerning further
service on Petrobras’ Tupi field offshore newbuild deepwater semisubmersible progress in the construction of the fourth
Brazil from mid-2009. drilling rig West Aquarius from the DSME and fifth in the line of Sevan FPSOs. The
Transocean has taken custody of shipyard in South Korea. The semi has Norwegian company is cutting back on its
Development Driller III, an ultra- been deployed to Indonesia to begin the investments, having withheld $7 million
deepwater semi built by KFels in first assignment of a four-year contract in payments, prior to achieving firm
Singapore to the yard’s proprietary with ExxonMobil for worldwide vessel contracts.
DSS 51 design. Able to drill wells 37,500ft exploration. Flex LNG and SHI have agreed to
deep in up to 7500ft of water, the rig is Scorpion Deepwater has reached an certain changes to the construction
upgradable to 40,000ft and 10,000ft, amicable agreement with KFels and third contracts for four floating LNG (FLNG)
respectively, and can carry 13,500t party vendors to terminate construction production vessels – the world’s first –
payload. It will be deployed to the Gulf of of a $405 million DSS-38 class currently on order. Delivery dates have
Mexico for BP. semisubmersible drilling rig, absorbing a been put back by 6-7 months and
JSL has completed has completed loss not exceeding $74 million. Scorpion consequently the installation of hulls and
turnkey construction of Petrorig I for says it is working closely with KFels and topsides. In a related matter, Kanfa
Larsen Oil & Gas. The first in a series of the vendors to progress discussions with Aragon, a subsidiary of Sevan Marine,
four ultra-deepwater semisubmersible other parties who have expressed an has landed a $200 million contract from
drilling rigs the company has on order interest in constructing and equipping SHI for development of an LNG
with JSL, the 6th generation F&G Ex-D the semi. production topside for the FLNG
Millennium Class rig can drill up to production vessel.
37,500ft in DP mode in water depths to Floating production PetroProd has agreed to sell the
10,000ft. It is slated for a five-year charter SBM has contracted Keppel Shipyard to MT Arc, under conversion to an FPSO at
in the Gulf of Mexico. upgrade the FPSO Capixaba, originally JSL, to an undisclosed operator for $216
Marine Accurate Well has taken converted by the yard in 2006, for million. Vessel mobilization is scheduled
delivery of the semisubmersible drilling operations offshore Brazil. The work for 1Q 2010. PetroProd says it is exiting
the FPSO market to focus on jackups.

Construction barges
Bumi Armada has contracted Keppel
Shipyard to construct a derrick lay barge
for pipelaying operations in waters of up
to 100m deep. The vessel is to be built in
two separate hull strips and mechanically
completed at Keppel before being
transported through the Volga-Don River
canal system in 4Q 2009 for assembly by a
Caspian Sea shipyard.
Swiber Holdings has launched its
300-man accommodation-dive-support
work barge Swiber Victorious,
constructed by Kreuz Shipbuilding &
Engineering in Singapore. The 100m long
vessel, equipped with a 300t Huisman
crane and valued at $37.5 million, is
jointly owned by ICON Capital
Corporation (51%), a US-based global
equipment leasing and specialty finance
company, and Swiber (49%).
Swiber has also recently taken delivery
of the pipelay and 248-man
accommodation work barge Swiber
Concorde. Constructed by a Chinese yard,
the 113m long vessel is equipped with a
200t crawler crane and a 45t pedestal
crane.
Seajacks International, a Bermuda-
based owner and operator of self-
propelled harsh environment liftboats,
has taken delivery of its first liftboat (see
page 58). Seajacks Kraken was
constructed at Lamprell’s yard in the
Jebel Ali Free Zone, Dubai.

56 OFFSHORE ENGINEER | may 2009 w w w . o f f s h o r e - e n g i n e e r. c o m

oe_M_4_NP_p057_shipyardsv2 29/4/09 5:25 pm Page 57

Support vessels signed on to build for the Norwegian

Kencana HL, a Kencana Petroleum drilling contractor, which has already
subsidiary, has started building a second secured long-term contracts for Petrorigs
tender assisted drilling vessel, to be I, II and III upon deliveries. This cloud
constructed at Kencana’s 53 acre may be passing, however, as PetroMena
fabrication yard located in Lumut Port recently announced its subsidiary
Industrial Park, Perak, West Malaysia. Petrorig III Pte and Jurong Shipyard have
Completion is slated for 2Q 2010. agreed to postpone a $105 million yard
Bumi Armada of Malaysia has installment related to Petrorig III that
launched the Armada Tuah 105 (pictured), was originally due in January this year to
a 12,000bhp class AHTS (anchor handling the delivery of the rig in 1Q 2010.
tug and supply) vessel, built at DryDocks Moreover, subsidiary Petrorig I Pte has
World Shipyard on Batam Island, a conditional commitment from Lloyds
Indonesia. TSB Bank regarding financing
The vessel, contracted to work in $200 million out of the $300 million debt
Nigeria, is the thirteenth delivery to-date for Petrorig 1, the $100 million balance
in the company’s 20-strong newbuild being sought from another bank.
programme. Meanwhile, Larsen Oil & Gas, as
Lewek Shipping, a subsidiary of business manager for PetroRig III Pte,
Singapore-based Ezra Holdings, has has received a conditional offer of
cancelled two newbuild deepwater multi- approximately $540 million for PetroRig
functional support vessels (MFSV) III.
following Karmsund Maritime Service’s There is, however, some good news for
declaration that it is unable to complete SembCorp Marine as its Sembawang
and deliver the vessels in accordance with Shipyard subsidiary has secured
the contracts. Ezra has received full Favoured Customer Contract status from
refund of advance payments made to BG LNG Services in the US for the long-
KMS for the MFSV’s totalling about term provision of shiprepair,
$28 million. refurbishment, upgrading and related
Lewek is also working on a mutually marine services for its fleet of LNG
agreeable termination of its contract carriers, boosting Singapore’s ambition
with Keppel Singmarine for an MFSV, a to become a major LNG hub. BG LNG
$69 million 30,000bhp newbuild originally Services is a subsidiary of BG Group and
slated for completion in 2010. partners Singapore’s Energy Market
Authority in the supply of up to 3mtpa of
Yards LNG to the island republic for a period of
Shipyards are increasingly feeling the up to 20 years.
pinch as more contracts are renegotiated. Another positive note was sounded by
As Keppel Corporation has observed, the Strategic Marine, headquartered in
global economic slowdown and financial Western Australia, which in February
crisis as well as the drop in oil prices have officially opened its 136,000m2 shipyard in
affected the oil & gas industry with the Vietnam. Located in Vung Tau’s Dong
consequence of fewer rig contracts. Xuyen industrial zone along the
Shiprepair is also expected to slump as southeast coast, the facility is geared up
low freight rates result in more vessels for the construction of large steel and
being laid up. aluminium vessels and already boasts a
However, Keppel sees demand for FPSO $69 million order book.
conversions remaining strong, and, with The $18 million facility has three
an outstanding order book of about $7 slipways capable of constructing vessels
billion and deliveries into 2012, Keppel up to 200m long and 60m wide with
Offshore & Marine’s yards will remain tonnages to 15,000t, and is equipped with
busy. more than 20 workshop overhead gantry
SembCorp Marine has been cranes ranging up to 50t, as well CNC
experiencing more serious difficulties plasma cutting machines. Strategic
with PetroMena over payment for ultra- Marine also has yards in Australia,
deep drilling semisubmersibles they Singapore and Mexico. OE

w w w . o f f s h o r e - e n g i n e e r. c o m OFFSHORE ENGINEER | may 2009 57

OE_M_4_SmithBerger.indd 1
oe_M_4_p058_seajacks 29/4/09 5:13 pm Page 58

VESSELS

The Seajacks Kraken on

its way to Nova Scotia to
begin its maiden
assignment this month
and (inset) jacked up for
February’s pre-launch
final testing in Dubai.

Multi-role jackup eyes M

anaging director Blair Ainslie
describes Seajacks’ new units as
‘harsh environment liftboats’,
adding that they are on ‘a slightly grander

market gap scale’ than the Gulf of Mexico type

liftboats with which the industry has
become familiar over the years.
Seajacks International saw a gap in the market for new fit-for-purpose jackup With existing equipment scarce, under
units with a lift capacity in the 50-2000t range that could handle inspection long-term commitments, expensive, old
and often ill suited for the environment
repair and maintenance work on shallow-water oil & gas structures as well and the work to be undertaken, Ainslie
as installation of offshore wind turbines. Meg Chesshyre reports. says his company devoted nine months to

58 OFFSHORE ENGINEER | may 2009 w w w . o f f s h o r e - e n g i n e e r. c o m

oe_M_4_p059_seajacks 29/4/09 5:14 pm Page 59

‘The southern North Sea is our

core market but we are also
looking on a broader scale
towards international markets.’
Blair Ainslie, Seajacks

designing and developing an alternative delivery of the first of its harsh

vessel to its own liking. The Bermuda- environment liftboats, the Seajacks Kraken
based company talked to 28 shipyards in mid-March. The unit has already
before placing an order for an initial two secured four to five months’ work in
units – the Seajacks Kraken and Leviathan Canadian waters, as an accommodation
– with Lamprell Energy in Dubai in unit supporting maintenance and
January 2007. construction work on ExxonMobil’s Sable
Seajacks has the option to build five Island development offshore Nova Scotia
additional units of similar design, which starting at the beginning of May. Seajacks
will be tailored for work in North Sea or is marketing the vessel for work upon
more benign environments on a case- completion in Canada and demobilisation
specific basis. to North Sea. It will be available from
Established in March 2006 by Norwegian 1 November. Potential projects include well
industry investors and listed on the Oslo intervention, oil and gas operations and
Stock Exchange in October the following maintenance and wind turbine
year, Seajacks is managed from Great installation. Ainslie says the level of
Yarmouth in the UK. It is fully funded for interest is very high and prospects are
the first two vessels having raised $117 excellent.
million in February 2007 through a private The other unit, Seajacks Leviathan, is
placement of shares, and two months later still on schedule for delivery 22 June. It
secured bank financing to the tune of $180 already has a contract with Fluor to
million to cover their construction. operate as a wind turbine installation unit
The self-propelled, four-legged units are on the Greater Gabbard project offshore
capable of travelling at eight knots and UK starting in September for a firm period
equipped with DP2, enabling them to move of 14 months with certain provisions to
safely, efficiently and quickly between extend. Total value of the firm period is
platforms and then jack up again. estimated at around $62 million. Total
According to Ainslie, they can operate in secured contract value for the two
significant wave-heights of 2m (compared contracts is $100 million.
to the 1-1.5m of standard three-legged Ainslie expects staffing at Seajacks’s
jackups) and in water depths to 48m, which Great Yarmouth and Lowestoft offices to
covers 94% of southern North Sea fixed rise from the current 36 to 128 by time the
platforms. company has taken delivery of its second
Fully compliant with UK, Dutch and vessel in September. And he remains
Danish oil & gas regulations, the jackups confident the new vessels will attract
are based on the GustoMSC NG-2500X plenty of work in the future, particularly
design, with a hull length (at waterline) of in the emerging offshore wind market. ‘If
61m, width of 36m, depth of 6m, and 84m half the proposed renewable projects
legs. With their propulsion provided by actually come to fruition, then there will
4 x 1500kW azimuthing thrusters, the units be a real bonanza for those involved in the
offer accommodation for 90 personnel and supply chain for renewable energy.’ OE
900m2 of uninterrupted clear deck area to
accommodate well intervention and
construction equipment and transport
wind turbine components. A 300t crane,
with a 50m and 70m optional boom,
provides extended reach for access to
platform topsides and wellheads and for
wind turbine installation.
Ainslie sees the company’s core market
as the southern North Sea offshore oil, gas
and wind market, but ‘we are also looking
on a broader scale towards international
markets’ he adds. The second of Seajacks’ harsh environment
Following completion of its sea trials in liftboats, Leviathan, taking shape at
February, Seajacks International took Lamprell’s Jebel Ali yard last month.

w w w . o f f s h o r e - e n g i n e e r. c o m OFFSHORE ENGINEER | may 2009 59

OE_M_4_Friedhelm.indd 1
OE_M_4_BOS_FP.indd 1 24/4/09 11:44:47
oe_M_4_NP_p061_M_A 28/4/09 6:25 pm Page 61

MOORING & ANCHORING

Shell’s Perdido direct vertical system exceeds the cost of the mooring
access spar set a spar mooring system hardware, so development of
depth record of 8637ft last year. components that are durable, easy to
handle and reduce the installation time is
now crucial for cost-effective, deepwater
mooring.
Traditional shallow water catenary
mooring systems have struggled to cope
with the demands of deepwater mooring.
The differential catenary weight of a
chain mooring line is the main source of
mooring line restoring tension in a
shallow water system. However,
conventional catenary mooring systems
become progressively ineffective as water
depth increases to 2624ft (800m). To
achieve the desired mooring tension,
without excessive weight, steel spiral
strand wire and hybrid mooring lines
such as synthetic fibre ropes have been
developed.
Synthetic mooring lines are
considerably lighter than steel spiral
strand wire, more versatile and require
less chain to enable taut moorings to be

Coming to terms with deployed. In addition, the taut leg

mooring systems provide larger
horizontal stiffness and a reduced seabed
footprint at lower cost. For these reasons,

the deepwater challenge synthetic fibre ropes are often preferred

over conventional steel wire and chain
lines in deepwater moorings.
The need for mooring systems that better reflect the rigours of installing in Deepwater mooring is more technically
today’s deepwater environments is discussed here by First Subsea’s Brian Green. demanding than shallow water mooring.
The ‘typical’ deepwater mooring line is a
complex mix of anchor or pile, shackles,

O
ver the last decade, the move to Recent deepwater developments such as
deepwater oil & natural gas Shell’s Perdido direct vertical access spar chains, connecting links and polyester
production has gathered pace as have set a spar mooring depth record of rope. Of note is the way in which the
shallow water reserves have become 8637ft (2632m). And the shortly to be polyester rope is often split into segments
uneconomical. In the Gulf of Mexico installed disconnectable Submerged interconnected with H-links, and
alone shallow water oil production has Turret Production (STP) buoy in the connected to chain at opposite ends of the
halved, while deepwater oil production Chinook Cascade field in the Gulf of mooring line. The final segment to the
has almost doubled. Mexico will be moored in 8530ft (2600m) of pile or anchor is normally chain, this
water, the deepest application so far for a follows the US Department of the Interior
About the author STP buoy supplied by Advanced
Production & Loading (APL). The trend
Minerals & Management Services (MMS),
Gulf of Mexico OCS Region, stipulation
Brian Green has clocked up over in deepwater and ultra-deepwater that polyester mooring lines for
30 years’ experience in the offshore production in the Gulf of Mexico looks permanent facilities are not permitted to
industry since graduating as a scientist set to continue beyond 10,000ft (3048m). touch the seafloor due to concerns about
from Aberdeen University. Today, as As moorings go deeper, so issues external abrasion and internal abrasion
general manager of First Subsea, he is surrounding the mechanical and from particle migration into the load
responsible for the continued growth of the practical demands on deploying mooring bearing fibres of the rope.
company’s Ballgrab subsea connection systems systems are coming to the fore.
business and development of new niche markets Quality and reliability of the mooring The deepwater agenda
such as riser technologies and marine renewables. components is critical. The cost of The next stage in the evolution of
installation of a deepwater mooring deepwater mooring systems is being

w w w . o f f s h o r e - e n g i n e e r. c o m OFFSHORE ENGINEER | may 2009 61

oe_M_4_NP_p062_M_A 28/4/09 6:25 pm Page 62

MOORING & ANCHORING

driven on two fronts: developments in on a single reel.
materials technology and efforts to If a rope manufacturer were able to
reduce the complexity of mooring lines develop a 20g/denier tenacity yarn, the
and subsequent cost and time for rope diameter and weight per metre
deployment. This latter point is critical – would be reduced sufficiently to allow
the connection is the ‘weak link’ in the approximately 5000m of rope on a single
mooring line. So it follows that the fewer reel, using the same production
the mooring line connectors the better. machinery. Developing higher tenacity
Two separate incidents last year yarns is thus a high priority for the rope
concerning the failure of a mooring industry.
shackle and a mooring system for a Chains will continue to play a vital role
MODU in the GoM have focused the in deepwater mooring systems. Here
offshore industry’s attention on developments in pile and deck chains
materials, bringing both the importance have focused on offering smaller diameter
of mooring systems and their chain with higher tensile strengths – as
vulnerabilities to the fore. Concerns were they go to deeper water the chain element
raised by the MMS about the engineering needs to take more load.
integrity of forged metals and their
implications for the integrity of shackles Simplifying the mooring jewellery
and mooring systems. In both cases it is The outcome of these materials
understood that there were concerns over developments will be mooring lines
the manufacturing procedures. Poor designed specifically for deepwater
quality heat treatment after forging had environments with fewer connections,
apparently resulted in a metal unable to reducing the complexity and time needed
meeting the ‘Charpy’ standards for to make up mooring lines. As stated
materials’ ‘toughness’. Perdido First Subsea male SMC and earlier, reducing the number of links will
One of the consequences of these polyester rope mooring winch. also make the deepwater mooring
failures has been increased testing of systems more robust.
components. The physical cost of testing tests and tensile tests. It has been Where mooring line connections are
components has been estimated to add a observed that the rate of rate of cooling needed, these are currently labour-
minimum of 5% to the average at the end of the billet is different from intensive, and time consuming to produce
component production cost. It has also the rate of cooling in the middle of the offshore. The next generation of mooring
increased awareness of potential points billet. As a result, the microstructure of connections will be simpler and quicker
of failure in a mooring system. In a the forged steel at the end of the billet is to complete. In some cases the
polyester mooring system, for example, it significantly different from the steel in connections may be integrated with rope
is the rope connection point that is more the middle of the billet. manufacture so that all connections are
likely to fail rather than the tether rope One of the outcomes from the project done offshore. Where rope/rope and
itself. will be the establishment of consistent rope/chain connections are needed
Most mooring connectors from the material toughness (Charpy impact) and offshore, new types of H-link, Pearlink
subsea mooring connector to the H-links mechanical performance throughout the and Platelink connections are being
and shackles are made from forged steels. bar. developed that will reduce the time
Metals forging is a complex, and (at large Continued improvements in needed to make the connections.
diameters), not well researched process lightweight mooring rope performance Over the next 12-24 months, we can
compared with many other metals are producing longer, complete lengths of expect that the combination of metals and
treatment techniques. Mooring rope. One rope manufacturer can polyester rope materials research,
components need to exhibit high levels of presently produce 80t reels of polyester together with new inter-connector
strength and toughness, as well as rope which, based on 9g/denier yarn designs, will give naval architects new
outstanding fatigue behaviour over an tenacity and rope MBL of 1000t, equates options for designing deepwater and
extended period. While the latter relies to approximately 3000m continuous rope ultra-deepwater mooring systems. OE
heavily on established computer
modelling techniques, the factors
governing strength and toughness are
less well understood. First Subsea’s
forging research project (OE May 2008)
indicates that adjusting the chemical
composition of the metals can be used to
optimise the material’s performance
within a narrow performance range;
whilst cooling rate and geometry of the
metal have a greater effect on the overall
mechanical performance of the material.
The cooling rate of the forging is one of
the main factors used to control the
microstructure of the material within the
billet. By understanding how the forging
cools, it is easier to predict the
mechanical properties in different parts
of the forging such as Charpy impact A First Subsea connector during forging.

62 OFFSHORE ENGINEER | may 2009 w w w . o f f s h o r e - e n g i n e e r. c o m

 November 17~19
PECOM 2009 This conference will provide an in-depth view of the
current Mexican market as well as trends, critical
technology issues, excellent networking opportunities,
and the chance to revitalize relationships with existing
partners and clients. Let PECOM 09 be your platform to
inform delegates about developing trends,
new technologies and innovations.
Conference presentations are
open to all exhibitors.
Why Exhibit at PECOM
Oil services companies are pursuing a massive drilling contract in Mexico, one of the few
countries to boost oil investment this year despite the price collapse.
With drilling activity plummeting in traditional markets such as the U.S and Canada,
industry giants such as Schlumberger, Halliburton and Baker Hughes are looking to
expand into Mexico.
PEMEX is spending heavily to halt a collapse in production that threatens to erase the
country’s exports in less than seven years.
Traditional fields are in steep decline. PEMEX has few options other than to explore the
deep waters of the Gulf.

Quick facts about PECOM

In cooperation with PEMEX and IMP
5,000 attendees from 14 countries
More than 250 exhibiting companies
More than 6,800 sq mtrs of exhibit space
Villahermosa is the undisputed Energy Center of Mexico with 5 PEMEX Sub-director offices
(Southern Region, Drilling, Petrochemical, Geophysical, Exploration); as well as regional
offices of IMP, AIMP and Colegio de Ingenieros Petroleros

Attendance Profile at PECOM

Officer / Director / Senior Management 20% 12%
Engineer 23% 20%
5%
Consultant 8%
Operations / Management 32%
23%
Government 5% 32%

Other 12% 8%

Petroleum Exhibition
& Conference of Mexico
Villahermosa, Mexico
Contact for Exhibit Space
www.OilOnline.com/mexico [email protected]
+1 713.529.1616 / fax +1 713.821.1169

OE_M_4_PECOM_FP.indd 1 24/4/09 16:23:39

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OE_M_4_GCOD_FP.indd 1 28/4/09 13:00:30
oe_M_4_NP_p065_M_A 28/4/09 6:26 pm Page 65

MOORING & ANCHORING

The Creeper prototype with
a 5in PVC pipe simulating a
rope. Four cameras with
LEDs (pictured left) take
overlapping video as the
device moves along the rope.

Creeper ready to learn the ropes

This summer, SeaTrepid International and will do the first extensive tests on a system that company president
Bob Christ says could replace ROVs in many mooring and riser inspection operations. Russell McCulley reports.
that would allow it to ‘sleep’ on the

D
ubbed the Creeper, SeaTrepid’s new and LEDs with variable lighting. The
vehicle will perform close-up prototype is compliant with 3in-6in seafloor and recharge.
inspections by attaching to the diameter rope, with larger ropes planned The vehicle has a couple of limitations:
ropes and moving up and down the for the production model. In the first it cannot glide along rope where marine
fixtures either with an ROV’s assistance phase of deployment, Christ says, an ROV growth is present, so the uppermost 100ft
or in autonomous mode. will be used to transport the Creeper to of mooring will still have to be inspected
The system’s origins go back to a guy the rope for attachment; the Creeper then by traditional means. And it cannot
wire inspection on a compliant tower in takes on the job of locomotion along the negotiate the full length of moorings that
the Gulf of Mexico, where operators were line and feeds video to the larger vehicle, use a combination of rope and chain
using an ROV to produce video. Guy wires which will transport images back to the segments in semi-autonomous, or
and risers ‘are dreadfully difficult to surface. untethered, mode.
inspect with ROVs. The video is shaky, In a planned second phase, the Creeper Still, notes Christ, the Creeper could
and if you lose sight for a second, you will be outfitted with sacrificial weights become a valuable inspection tool at
have to start over,’ says Christ, who was that drag it slowly along the line down to many oil and gas installations, especially
asked to come up with a better method. the seafloor; once the weights are as synthetic moorings reach their
SeaTrepid developed the Creeper with jettisoned, the vehicle will roll back up projected life spans.
the Canadian firm Inuktun, which came the rope as it captures video and log the ‘This is a new twist – the contact
up with the system’s clasping mechanism. line with a Creeper-deployed sensor suite. method,’ he says.
The vehicle includes a ring of four Eventually, Christ says, the Creeper could SeaTrepid expects to have the Creeper
cameras that offer overlapping coverage be deployed with a subsea docking station on the market by late summer 2009. OE

ACE IN THE HOLE: Banff-based ACE Winches recently completed the

design, manufacture, installation and commissioning of a bespoke 200t
SWL replacement anchor mooring winch to lift and tension the mooring
lines of the Anasuria, the first purpose-built FPSO to be constructed for
Shell UK Exploration & Production.
With available space at a premium and a large pull capacity
required, ACE, contracted to manufacture a winch for tensioning the
FPSO’s anchor chains, opted to use standard drive concept gearboxes
based around Compact high torque low speed DNV approved motors
and brakes from Sweden’s Hagglunds.
The winch had to be designed, manufactured and fully
function-tested then stripped down into eight boxes for shipping to the
vessel as there was no crane facility for assembly of the winch into the
turret. All winch components were moved from deck to location
through narrow corridors using chain blocks.
Tidal conditions played a crucial role in ensuring the turret was in a
safe loading position for transferring of the winch parts, reports ACE
technical director James Gregg.

w w w . o f f s h o r e - e n g i n e e r. c o m OFFSHORE ENGINEER | may 2009 65

oe_M_4_NP_p066_stats 29/4/09 5:34 pm Page 66

OFFSHORE DATA
Offshore Engineer’s at-a-glance guide to Reserves in the Golden Triangle by water depth 2009-13
current offshore field and rig data is Water Field Liquid Gas
updated monthly using statistics supplied depth numbers reserves reserves
(mmbbl) (bcf)
by data analysts Infield Systems and
premium rig utilization rates provided by Shallow 32 1223 4595

Brazil
Rigzone.com Deep 24 5587 4392
Ultradeep 10 2198 1000

Note: Shallow 61 78 810

USA
Shallow water <500m Deep 58 2748 4717
Quick stats guide Deep
Ultradeep
500-1500m
>1500m
Ultradeep 26 3240 3635

Shallow 175 4601 15,941

W Afr
Deep 36 6150 8040
Worldwide and Southeast Asia rig market overview New discoveries announced
Ultradeep 7 1020 760
Utilization for the worldwide mobile Depth
range 2006 2007 2008 2009 430 26,845 43,890
offshore drilling fleet has dropped to
(last month) 428 27,658 43,649
77.6% from last year’s figure of Shallow 177 151 107 22
84.2%. Deep 26 31 28 6
Overall rig utilization in Southeast Ultradeep 18 24 17 9 Production systems worldwide
Asia currently stands at 71.0% while (operational and 2009 onwards)
Total 221 206 152 37
jackup rig utilization in the region is Floaters: (last month)
at 78.4%. Operational 236
Of the 40 jackups currently in Greenfield reserves
2009-13 Under construction/conversion 41
Southeast Asia, almost half will roll Planned/possible 210
Water Field Liquid Gas
off contract during 2009, and only a depth numbers reserves reserves 487 (484)
handful of those rigs have options (mmbbl) (bcf) Fixed platforms:
(last month) (last month)
that, if exercised, would carry over Operational 9179
into 2010. Shallow 1301 67,091 666,412 Under construction/conversion 153
(1294) (70,386) (730,331) Planned/possible 1468
Deep 176 16,701 59,175 10,800 (10,773)
(179) (17,216) (58,925) Subsea wells:
Operational 3583
Ultradeep 49 6494 11,895 Under development 533
(51) (6846) (12,455)
Planned/possible 4315
1526 90,286 737,482 8431 (8399)

Global offshore reserves (mmboe) onstream by water depth

2007 2008 2009 2010 2011 2012 2013

Shallow water 7516.36 28,562.50 19,632.88 16,648.91 34,473.87 36,643.95 77,232.73

(last month) 7650.99 30,061.03 19,731.62 15,550.13 34,091.64 42,935.52 86,894.62

Deep 7315.97 3571.28 5650.39 4624.01 3732.21 7092.68 6002.76

(last month) 7318.47 3542.51 5682.15 3790.53 5067.06 6632.49 6400.73

Ultradeep 972.61 1420.32 701.14 1632.70 840.89 1281.36 4135.20

(last month) 972.61 1420.32 701.14 1632.70 811.33 1281.36 4615.98
All reserves figures are proven plus probable.
SOURCES: Field data: Infield Systems, London (www.infield.com); Rig data: Rigzone, Houston (www.rigzone.com).

66 OFFSHORE ENGINEER | may 2009 w w w . o f f s h o r e - e n g i n e e r. c o m

 October 20-22, 2009 Core Topics Include
Galveston, Texas
San Luis Resort & Convention Center
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Space is Limited
For Information on Exhibit
Opportunities, Sponsorships,
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Fax: +1 713.535.1520
[email protected]
DEPLETION

www.DrillingTroubleZones.com
OE_M_4_DCTZ_FP.indd 1 29/4/09 16:29:53
oe_M_4_NP_p068_PIAv2 29/4/09 6:59 pm Page 68

PRODUCTS IN ACTION
waterflooding, in temperature obtained from MWD tools and stump to 2000psi. During the
during steamflooding or produces an excellent visual 30-minute test, no leaks were
porosity reduction if display of the actual wellpath observed. The test from set-up
subsidence occurs. With time- while drilling,’ notes Scott to laying the tool down took
lapse monitoring using Roth, staff geoscientist at 50 minutes. The tool inflated
DeepLook-EM, Schlumberger Williams Production. ‘This and deflated in less than an
says flood-front movement can display allows us to verify that hour and required two
be accurately depicted and we are in our target zone and personnel. By testing on
tracked. All field data are clearly indicates when surface instead of at the
compiled within Petrel adjustments to inclination are seafloor in 6300ft of water,
seismic-to-simulation necessary to remain in the Tam believes the tool saved up
software, and are seamlessly target zone. The end result is to three or four days to trip in
For further information on companies integrated to model and laterals properly placed in the the marine riser and LMRP.
and their products featured in this interpret the reservoir volume target zone which should yield TripSAVR is an exposed slat
review, please go to logged. better completions, higher inflation element mounted on
www.offshore-engineer.com Interwell seismic imaging production rates and greater an externally-inflated packer
can provide seismic velocity return on investment.’ assembly. The tool can be
profiles and seismic imaging inverted, allowing for pressure
at resolutions an order of tests from above or below the
Trip saved
products in magnitude higher than
surface seismic. This detailed Tam International believes its
desired area, where the
exposed slats act as an anchor

action information can be used to

understand reservoir
TripSAVR, an externally
inflated packer, will save time
to hold the packer in place.

characterization at the by providing a means to test

Crosswell imaging reservoir scale and in a time the internal to external seals
Optimum control
Schlumberger expanded its lapse mode to monitor fluid in BOP stacks/lower marine Emerson Process Management
Deep Reading portfolio with movements such as in steam riser packages (LMRPs) offline has introduced the new
the new electromagnetic injection and CO2 on the surface before the DanPac process acquisition
DeepLook-EM enhanced sequestration. BOP/LMRP is run to depth. If controller system for use with
crosswell reservoir imaging a leak is found only when the Daniel oil and gas fiscal flow
and monitoring system and Reducing well tool gets to the subsea metering systems engineered
the acquisition of crosswell wellhead, costs rise as it and supplied by Emerson. The
seismic reservoir imaging cycle time entails pulling the riser back DanPac single software
technology. The services Williams Production selected to surface, repairing the leak, platform taps the intelligence
include pre-job planning, Paradigm geosteering and and then re-running it. of field devices, delivering
modeling, simulation, drilling solutions for A Class 5 predictive and diagnostic
acquisition, processing and deployment on future well deepwater rig information for a more robust
inversion to deliver interwell projects. The selection follows operator selected and precise control. The open-
reservoir images. a successful trial period the tool to test all standards DanPac has built-in
The second generation during which Paradigm of the internal redundancy and comes with
DeepLook-EM system provides technology produced seals in the LMRP completely pre-configured
detailed resistivity profiles increased drilling confidence before it was run control hardware and
between wells up to 1km apart and substantially reduced well in a well in 6300ft standardized components.
using induction logging cycle time. The company says of water in the According to Emerson, the
principles. Acquisition is its Sysdrill and Geolog Keathley Canyon system architecture brings all
performed using a dynamic GeoSteer provide a powerful area of the Gulf of the elements of advanced
transmitter sonde in one well log-scale interpretation Mexico. The test measurement and control
and an array of receivers in an capability that integrates was performed applications together in one
offset well. Receivers can be petrophysical, geological, offline while other place using open,
deployed in open or cased geophysical and drilling operations were interoperable and scalable
wells. workflows. This well planning being performed at technologies, including a logic
In development for over environment enables the the rotary table, so controller and Daniel’s S600
seven years, DeepLook-EM design and engineering of it did not tie up rig flow computer. The logic
surveys have now been complex well paths, based on a floor time or create controller delivers real-time
completed in the US, Canada, combination of seismic, non-productive rig diagnostics and alarms from
China, Brazil and the Middle geological and reservoir data, time, such as if it the skid-mounted PlantWeb
East. According to for optimal placement in the had to be carried digital components to
Schlumberger, the crosswell reservoir, Paradigm says. out in the streamline maintenance
images have provided Using Sysdrill and Geolog moonpool just efforts and prevent unexpected
customers vital information Geosteer, the Williams team prior to running it shutdowns and measurement
on the efficiency of water- and was able to successfully meet subsea. variability.
steamflood programs allowing its drill time goal, while For the cap seal ‘The new DanPac system
inter-well saturation to be maintaining proper well bit test, the TripSavr allows easy operator control of
estimated and bypassed pay placement, with true 3D packer was set Daniel high precision oil and
zones to be identified. visualization and calibration inside 193/4in ID gas custody transfer and fiscal
Interwell resistivity of seismic data. ‘It combines and pressure flow metering systems,’ said
variations can be caused by the information from 3D tested from below Steve Colella, vice president
changes in saturation during seismic surveys with the data while on test and general manager of

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PRODUCTS IN ACTION
Daniel’s systems business. which was designed to drill an
‘Capital and operating entire section of a well with a
expenses are positively single bit that could be rebuilt
impacted using Daniel several times.
measurement solutions with While very large drill bit
the DanPac system which can manufacturers use traditional
provide much greater CFD codes and employ experts
visibility to the skid systems to run them, smaller
by using intelligent field companies typically offer a
instruments with advanced non-optimized product at a
diagnostics and applications lower cost. Encore, which
embedded in the control found its profits squeezed by
hardware.’ erosion problems that affected
the ability to rebuild early
versions of the F5165D bit,
Bit life extension used an enhanced version of
A new generation of CFD software to modify the
computational fluid dynamics bit. The CFD software uses
(CFD) software allowed an native 3D CAD data and
engineer at drill bit automatic gridding of the flow
manufacturer Encore Bits to space, along with management
improve flow around the of flow parameters as object-
company’s F5165D bit, based features, to create a
increasing the bit’s life and simulation that the Saudi tractor goes the distance
enhancing cuttings removal. manufacturer claims will Western Well Tool recently lay claim to a record for the
Encore design engineer eliminate the need for longest distance travelled in an open-hole section during
Vince Salvo used the FloEFD engineers to understand the an acid stimulation and production logging tool (PLT) run.
software developed by Mentor computational part of CFD. During down-hole operations, the company’s IT-470
Graphics Mechanical Rather, the software lets them established a new horizontal open-hole benchmark for
Analysis, formerly Flomerics, focus on fluid dynamics. coiled tubing (CT) work of 5989ft.
to make changes in the bit Salvo used simulation For an extended-reach water injector well drilled from
geometry and nozzle results to make steady onshore beach to an offshore target, the operator's
configuration of the F5165D, improvements in the bit’s objective was to utilize CT instead of a drilling rig to
design. Tests showed erosion perform an acid stimulation and PLT run in the 28,203ft
to a specific blade where flow measured depth well with 5986ft of horizontal 61/8in open
rates reached up to 1800in/sec, hole. A window at 22,217ft was used to exit the 7in casing
or nearly 100mph. and create the sidetrack. Software simulations indicated
‘By altering the nozzle that lock-up of the 23/8in coiled tubing would occur before
configuration and the blade reaching the window.
shapes, we were able to Rather than bullhead the acid treatment by pumping
achieve lower fluid velocities down the annulus, to maximize the return on the
in critical positions while expensive costs of the treatment fluids Western Well Tool
maintaining and somewhat was asked to provide its hydraulically powered tractors to
increasing velocities in junk aid in properly stimulating the lateral from total depth
slot areas,’ said Salvo. The back to the casing window. Houston-based WWT specified
result is a bit with what its IT-470 tractor model with a pulling capacity of
Encore claims are better 14,500lbs at 1700psid.
cleaning and cooling abilities The bottomhole assembly for the acid run consisted of a
and improved wear. Salvo said motor-head assembly, circulation sub, the tractor and a
he was able to make the nozzle sub. While running in hole (RIH), lockup occurred
adjustments in a single day. at 21,980ft inside the 7in casing. The tractor was activated
and the CT was run in hole. As the BHA approached the
window, RIH speed was slowed to 3ft/min until it passed
Custom cementing through the window. Once the BHA was clear of the
unit ready for the window and into the open-hole section, normal operating
speeds of 15-20ft/min were resumed and were continued
ultra-deeps until reaching TD, at which point a ball was dropped to
A new-generation, high- activate the circulation sub. Once the ball landed and
performance Seahawk opened the ports, acid stimulation of the open-hole section
cementing unit has been began in stages while pulling out of hole.
developed by BJ Services for When running a PLT BHA to bottom to verify injection
installation onboard the PS1 rates across the lateral, the CT locked up at 22,220ft and
drillship for BP operations in the tractor was activated. RIH speeds were controlled to
the ultra-deepwater Gulf of 3ft/m while the BHA passed through the window. Normal
Mexico. The new drillship RIH speeds with the tractor were achieved even while
from Pride International is operating in the acid-stimulated open hole, reports WWT.
expected to go into service The entire operation was completed in 61/4 hours at an
during 3Q 2010. > overleaf average speed of 16ft/min at flow rates of 1.2bbl/min.

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PRODUCTS IN ACTION
ROLE REVERSAL: Nautronix reports
that its bespoke NASNet solution has
again been employed for a second time
by Subsea 7 to support positioning
operations during a North Sea pipeline
bundle towout. The latest project, on
BP’s Machar field, followed on from the
subsea contractor’s successful use of
the acoustic positioning system last
year for a similar bundle towout
operation on Total’s Jura field. NASNet
usually allows subsea positioning by
deploying stations on the seabed in a
network and using these to give position
reference signals to position equipment
within the water column. The company
7

reversed this principle for the bundle

PHOTO COURTESY SUBSEA

towout operation and instead track the

position of the beacons on the bundle
using the position of the vessel and
numerous constraints; as a result there
is one reference point providing full
positioning rather than a network.
NASNet MTrx units are pictured here
mounted on the Jura bundle towhead.

BJ said the addition of this

high-horsepower cementing
control systems, Coriolis mass
metering technology and
Swire, the tank, protected by a
worldwide patent, has
Knowledge base
unit to its fleet would provide hydraulically driven undergone a rigorous design boost
operators with an recirculating blending and safety assurance process The 2009 release of Knowledge
unprecedented range of systems. This power unit and and can carry a full range of Reservoir’s deepwater Gulf of
performance capabilities for pump combination also oilfield chemicals. It has a Mexico knowledge base,
offshore cementing, including enables the unit to be working pressure of 2.67bar ReservoirKB, features major
faster mixing rates for high- configured as a temporary and a test pressure of 4bar. upgrades to the web-based
volume tophole cementing, replacement for mud pumps By cutting down on space service, including a totally
faster displacement rates for a for selected displacement within the frame, the 1000 UK new GIS interface
variety of operations, and operations. gallon capacity tank design incorporating significant
greater redundancy and Custom designed by offers customers a reduced advances in system design and
backup capacity. engineers at BJ’s technology footprint (2300mm x 2300mm) targeted at maximizing
‘We are excited about the and operations support center and height (1815mm), navigation efficiency for users
advanced capabilities of the near Houston, the unit also minimising the need for seeking specific information
new-generation Seahawk incorporates automated liquid anyone to climb on top for on deepwater reservoirs.
cementing unit and the additive components, variable- operational or maintenance Hailed as the region’s most
opportunities it provides in speed electric drives and a reasons. comprehensive knowledge base
the exploration and high-speed fiber-optics The tank has dished ends, directed towards exploration
development of package. The self-contained requiring fewer external and appraisal geoscientists and
ultra-deepwater reserves, said model isolates the crew from frame stiffeners. Dip and vent engineers, the ReservoirKB
the company’s COO David high-powered components and valves are 1600mm from the subscription service, on a
Dunlap. ‘When needed, this manifolds and minimizes floor and slotted fork-lifting hosted portal, provides
high-power model can achieve exposure to noise, vibration, pockets help to avoid dropping coverage of all deepwater
blending rates to 20bbls/min dust and fumes. incidents. productive sands discovered,
[3m3/min] for ultra-deep zone More than 50 Seahawk It is constructed of stainless constituting reservoirs
isolation and related cementing units for drilling steel and coated using a currently either in production
displacement tasks. We expect rigs have been constructed by system devised jointly by or sanctioned for development.
it will provide important time BJ Services’ manufacturing Swire and Hempel Paints in Additionally, it provides
and flexibility advantages to facility in Singapore since Denmark to cut down on continually updated reservoir
BP in its development of new 2006. maintenance and blasting performance metrics, analogs,
fields.’ requirements. lessons learned and regional
The Seahawk dual-skid knowledge.
cementing unit features
Trimmer tank
automated twin-mixing The first of Swire Oilfield
capabilities and 2300 brake Services’ new square offshore
Arrow add-ons
horsepower, ensuring precise chemical tanks, dubbed the A new solar pump and
density control and zonal Safe Tank after ‘Swire additional well-completion
isolation across long, complex advanced fluid engineering’, products have been added to
intervals. Slurry consistency were delivered recently to the the Arrow Engine Company’s
is maintained with two company’s Aberdeen oil & gas industry portfolio.
independent automatic cement headquarters. According to Solar chemical pump model

70 OFFSHORE ENGINEER | may 2009 w w w . o f f s h o r e - e n g i n e e r. c o m

OE_M_4_Laps_FP.indd 1 28/4/09 13:09:01
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PRODUCTS IN ACTION
SCP-1200A, designed to making sure that all subsea ‘As existing fields become
introduce additive chemicals abrasive cutting activity is depleted, operators are
into the fuel production properly monitored so that the increasingly drilling in
stream, can be used at remote cuts are made accurately and deepwater reservoirs at higher
wellhead locations where with the greatest of care. pressures,’ said Halliburton
traditional electrical service ‘To achieve this, engineers Wireline and Perforating VP
or natural gas to run a pump is must be able to view the Jonathan Lewis. ‘Although
not available or hard to obtain. targeted area so that the there are currently only a
The durable pump is powered cuttings will be made handful of these extremely
by a heavy-duty, long-life 12V precisely,’ said Matthew high-pressure deepwater wells
battery that is continuously Gibson-Ford, principal project in the completion phase, they
recharged by an 80W solar engineer for EV Offshore. are prolific producers.’
panel array. (ST Barrier) despite the ‘Until now, this level – and Halliburton said it was
In addition, the company’s constraints of working in the flexibility – of monitoring designing additional gun
line of well-completion splash zone. This solution is couldn’t be achieved without a systems and firing heads in
products for the gas production able to continue curing to full diver involved in the cutting varying sizes to operate at
market now includes gas strength even in an immersed operations. However, with a 30,000psi.
measurement products such as environment. Early video/cutting system that
meter tubes, skid-mounted applications on surviving well features strategically placed Total system
meter runs and packaged and subsea applications are bespoke-designed SL40
measurement stations that planned.’ cameras, cutting engineers sidetrack
meet the latest AGA (American Belzona also launched its can now inspect the subsea A total system approach was
Gas Association) new compliant composite pipe operation from every desired used by Inteq and Hughes
specifications. Arrow added repair system, ‘SuperWrap’. angle,’ he added. Christensen to plan and
this complementary product Hailed as the first composite For what EVO describes as a execute a 121/4in by 143/4in
group through the acquisition repair system from UK-based subsea CCTV system, a total of section sidetrack project in the
of assets and key personnel Belzona Polymerics to have 17 custom video camera US Gulf of Mexico. Extensive
from Oklahoma-based Quinton been developed in compliance systems were supplied under offset analysis was conducted
Pearce Welding in 4Q 2008. with international and the £75,000 contract, along to identify the main drilling
technical standards ISO/TS with subsea halogen lights, hazards of the subsalt field
Moisture-tolerant 24817 and ASME PCC-2, it also custom subsea cabling and and engineer an integrated
complies with US DOT eight LCD video monitors, so drilling system for the
coating requirements. that engineers using the CCTV application.
Following on from the success The versatile alternative to system could view the subsea The integrated BHA
of Belzona 1831 (Super UW welding and cold-curing is cutting activity in real time included the AutoTrak RCLS,
Metal), Belzona unveiled an said to enable corrosion and ensure (a) the cuts were CoPilot Real-Time Drilling
innovative solution for the damaged components to be clean and (b) the cuttings had Optimization services along
prevention of corrosion and back online within 24 hours completely separated from the with a 121/4in Genesis bit and
future deterioration in splash and can be applied in situ to installation so that recovery to the 143/4in GaugePro XPR
zones at the recent Offshore pipes and vessels, even in surface could be made without expandable reamer. The offset
Mediterranean Conference in cases where operating an over-pull from the crane. well had required seven bit
Ravenna. The company said pressures exceed 250bar. ‘Not only did the cameras runs due to downhole tool
protective coating that is have to capture quality live failures and premature bit
normally considered A close eye on images of the cutting zone wear caused by excessive
impossible with conventional during the operation, we knew vibration while drilling
materials due to surface cuttings they had to be virtually through a challenging salt
moisture can now be A range of custom-designed “bullet-proof ” to fend off the section with anhydrite
effectively carried out by using subsea video cameras were driving force of jet-propelled laminations.
Belzona 5831 (ST Barrier). developed for a major oilfield particulates that would pound On this well, the sidetrack
The company’s range of services company by EV against the camera’s exterior,’ kicked off at 8649ft MD and
surface tolerant products has Offshore for monitoring said Gibson-Ford. then dropped angle while
been specifically formulated to abrasive cutting operations turning. After completing the
be ‘tolerant of surface moisture during the decommissioning High-pressure drop and turn, the tangent
and oil contamination’. These of one of the North Sea’s exited the base of the salt and
products are effective at largest fixed installations. perforating gun was drilled to the section TD.
displacing water when applied According to their Latest addition to the The sidetrack well was drilled
by brush, as they exhibit Aberdeen-based developer, the Halliburton suite of using the integrated Baker
excellent bond affinity with the cameras have played a crucial perforating technologies is a Hughes system. The sidetrack
substrate. Belzona 5831 (ST role in the move toward perforating gun with a 7in OD well required only two bit runs
Barrier) is said to be ideal for diverless decommissioning of that can perform at pressures in three trips and is calculated
offshore production platform platforms. The success of such of up to 30,000psi. Hailed as to have reduced the operator’s
service conditions. operations can hinge on the highest pressure-rated gun planned drilling time by 50%.
David Rice, Belzona’s system available in its size, the The combination of the
strategic manager for the oil & tool addresses a need for CoPilot service and an optimal
gas industry, explained: extreme high-pressure bit/reamer selection is said to
‘Corrosion protection can be capabilities in large borehole have kept vibration to a
reinstated easily and casings, specifically in minimum throughout the
effectively using Belzona 5831 deepwater environments. section.

72 OFFSHORE ENGINEER | may 2009 w w w . o f f s h o r e - e n g i n e e r. c o m

oe_M_4_NP_p073_f_f 29/4/09 6:18 pm Page 73

FIRMS & FACES

THREE INTO ONE: Stats Group has
invested £5 million in a new custom-built
HQ on the outskirts of Aberdeen, providing a
single location for 125 UK staff previously
spread around three sites. The specialist
engineering company provides piping and
pipeline maintenance and integrity
solutions for offshore operators. Pictured
outside the new facility are (left to right)
Stats directors Garry Allan, Peter Duguid
(MD), Lorraine Porter and Angus Bowie.

$5 million is to be paid after Enterprise last month. Others

one year provided certain honoured included: Aquaterra
financial performance targets Energy, LCM Oilfield Services,
are achieved. The acquisition Optima Solutions, IHC Engineering
is conditional on the Business, RMS, Zenith Oilfield
completion of environmental Technology, Centek, and Crux
testing at NCC’s Houston Products.
manufacturing facility, which
was expected to be completed BJ Services has upgraded its

firms by the end of April. Oirschot base near Eindhoven,

The Netherlands, to serve as faces
M-I Swaco has acquired National Oilwell Varco has the new continental Simon Henry (pictured)
Louisiana-based Chemtech, a acquired Asep Group Holding and Europe/North Africa region has been named
move that the company said Anson. Netherlands-based Asep headquarters for the chief financial
will expand its offering of develops and manufactures company’s process and officer at Shell,
chemicals and related well service equipment. UK- pipeline services group. succeeding Peter
technologies in the US. based Anson manufactures Voser who takes over as Shell’s
Chemtech supplies a range of flowline equipment, Solid expandable solutions chief executive 1 July. Henry
oilfield production chemicals, manifolds, valves, swivel specialist Enventure Global has worked for Shell since
along with the Welltrack joints, hammer lug unions, Technology has opened its first 1982, starting out as an
reporting software package and wellheads. office in Beijing, China. engineer at a UK refinery and
and the Eco-Pump chemical KJ Tan, Enventure’s China serving most recently as the
injection pump system. Bibby Ship Management has country manager, will oversee company’s EVP finance.
officially opened its new the new office and heads a
Foster Wheeler completed its dynamic positioning training 12-strong team tasked with Yang Hua was named president
purchase of the offshore centre and offices in driving further regional at CNOOC, replacing Zhou
engineering division of Sevastopol, Ukraine. The penetration of the company’s Shouwei, who was re-designated
offshore project design and $1.5 million purpose-built centre SET technology. as a non-executive director of
construction specialist OPE equipped with Kongsberg the company.
Holdings, which has assets in simulators will deliver basic Expro was last month handed
Houston and Trinidad & and advanced competence the keys to its new base in David Hager (pictured)
Tobago. Terms were not assessment programmes to an Ulverston, England, home to is the new EVP
disclosed. Under the deal, anticipated 250 students the company’s long- exploration and
however, OPE retains its during its first year. established Tronic subsea production at Devon
proprietary offshore floating power and data connection Energy, taking over
platform technology (OE Flare Solutions, which specialises systems division. The custom- from Stephen Hadden who left the
January). in the development and built 45,000m2 complex will company to pursue other
deployment of web-based consolidate Expro connectors opportunities. Hagar, who
Hunting is acquiring subsea knowledge management & measurements operations resigned his seat on the Devon
hydraulic coupling specialist software for E&P companies, that are currently spread over board with immediate effect,
National Coupling Company (NCC) was among a cluster of UK three sites. was COO at Kerr-McGee prior
for a cash consideration of energy sector companies to its 2006 merger with
$55 million. An additional awarded the Queens Award for CGGVeritas recently expanded Anadarko.
its processing & imaging hub
Tendeka, the newly launched parent production. Former Sondex boss in Nasr City, Cairo. ‘With its Pat Campbell (pictured)
organisation for digital monitoring Martin Perry (pictured left) will powerful computer facility and has been named EVP
solutions provider Sensornet, swellable oversee Tendeka’s operations as high-speed link to our massive at Superior Energy
elastomers firm Swellfix and wireless chairman, with Neale Carter (pictured EAME compute hub in the UK, Services, where he
well communication and downhole right) serving as CEO, the position he the new expanded regional will oversee the
instrumentation specialist Well previously held at Sensornet. Tendeka hub can process all types of company’s global subsea well
Technology, is looking to is backed by Shell seismic data, including wide- intervention expansion and its
consolidate these Technology Ventures Fund azimuth and multi-azimuth, decommissioning and well
specialist solutions for 1 BV and independently through the latest advanced control businesses. Campbell
increased efficiency in managed by Kenda imaging techniques,’ the was most recently president
well completions and Capital. company said. The hub and CEO of Superior
employs over 40 geophysicists. subsidiary Wild Well Control.

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oe_M_4_NP_p074_f_f 29/4/09 6:19 pm Page 74

FACES
Cris Gaut has stepped down as Michael Lowe has been Oosterveer stepping into business development arm of
president of Halliburton’s appointed global business Seaton’s former shoes as Fugro Airborne Surveys and
drilling and evaluation team group director, project group president, energy and Fugro Ground Geophysics. He
division. He is replaced by Tim management services, at chemicals. Fluor also will focus his efforts on the
Probert, who also retains his Noble Denton. Vernon Luning appointed David Constable as EAME region.
responsibilities for leading was named president of Lowe group president, project
Halliburton’s technology, Offshore International, a operations with David Dunning Tad Balinger has been appointed
supply chain management and company acquired by Noble succeeding him as group VP sales at Quantapoint. Most
mergers and acquisitions Denton in 2007. president, power. recently VP, Russia and CIS for
activity. Stratos Global, Balinger will
Stephen Johnson has joined Edward Pagano be on special assignment in
C Andrew Smith has been named McDermott International as (pictured) has been West Africa before taking up
SVP and CFO at Natco, the president and COO.He most appointed president residence in Quantapoint’s
company he joined in 2000 and recently served as senior EVP of Germanischer Houston office.
most recently served as SVP and member, Office of the Lloyd Industrial
finance. Chairman at Washington Services for the Americas. Michael Kearney has been
Group International prior to Based in Houston, Pagano, appointed executive VP and
Irion Bordelon Jr its sale to URS Corporation. who previously headed CFO at DeepFlex. Kearney
(pictured) has joined WorleyParsons’ US operations, was most recently CFO at
Gulf of Mexico Ralph John (pictured) will oversee GL’s western Tesco Corporation and VP
focused E&P has joined hemisphere oil, gas and finance at Hydril. DeepFlex
company Leed environmental renewables business. also named Donald Bockoven Jr
Petroleum as exploration services specialist as VP manufacturing. He will
manager. Previously with Total Waste John O’Donnell has become VP oversee all aspects of pipe
Mobil, Flores & Rucks and Management Alliance and president, western production at the company’s
Dominion Exploration & (TWMA) as VP business hemisphere operations, at manufacturing facilities.
Development in the US and development for the Middle Baker Hughes, which is
Nigeria, he was also CEO of East region, based in Dubai. reorganizing its global Michael Newbury has been
NorthStar Energy. He previously served with operations by geography. appointed corporate business
National Oilwell Varco in O’Donnell was formerly Baker development manager at Deep
Greg Mozsgai has joined rope Houston and more recently Hughes VP and president of Down. He has held various
manufacturer Samson as IDM International in London Baker Petrolite. Derek Mathieson, business development and
senior R&D engineer. The and then Dubai. formerly VP and chief operational positions with
company has also appointed technology and marketing Subsea 7, Halliburton Subsea,
Mark Pederson R&D engineer Brian Leith has joined Aberdeen- officer, was named as VP and Subsea International, and
and Dylan Dundas sales support based subsea operations president, products and Subsea Offshore.
technician. company DOF Subsea UK as technology.
business acquisitions Arthur Soucy (pictured)
Professor Yoo Sang manager. He was previously Graham Philip has been appointed
Choo (pictured), VP marine assets with Acergy. (pictured) has been VP supply chain at
director for research Ken Irvine has joined DOF appointed CEO of Baker Hughes. He
at the National Subsea UK from Venture Aberdeen- joins the company
University of Production as operations & headquartered from Pratt and Whitney, where
Singapore's Centre for engineering manager, with specialist offshore equipment he served as VP global supply
Offshore Research & James Cramond, formerly of rental firm Ashtead chain.
Engineering (CORE), has been Subsea 7 and latterly Technology, acquired by
appointed Lloyd’s Register Bluestream, also joining as Phoenix Equity Partners in a Robert Spencer (based in
Educational Trust Professor business development £95.6 million MBO in June last London), Roy Bleiberg (Houston)
(OE March) with effect from manager with a focus on the year. Philip joins from Gaoh and Wei Bao Shi (Singapore)
1 April. He takes the reins Mediterranean and African Offshore and had previously have been appointed to the
from Professor Peter Marshall, regions. served with Viking Offshore, newly created post of assistant
formerly with Shell and the AP Möller, Wijsmuller and the chief engineer within each
University of Newcastle-upon- Kevin Stewart Ocean Group. ABS operating division. All
Tyne. (pictured) has joined three report directly to the
Aberdeen-based Steve Fogg has been promoted to chief engineer Robert Giuffra
John Harrower subsea and well president oil and gas, Europe in the Houston corporate HQ.
(pictured) has been integrity at engineering and
named SVP management specialist consultancy firm Pöyry. He Bhushan Bahree
operations at Amec Brinker as group CEO. He was also remains managing (pictured) has joined
Paragon, the previously Enventure’s director of the company’s Cambridge Energy
Houston branch of general manager responsible Aberdeen office. Research Associates
engineering and project for the company’s operations (Cera) as a senior
management group Amec. in Europe, Russia, West Africa Dr Alessandro Colla director with responsibilities
Harrower was formerly the and Scandinavia. (pictured) has joined for Middle East and world oil
company’s commercial VP. the business markets. Bahree was most
Before joining Amec Paragon David Seaton has been named development team of recently director of energy
in 2006, he was a project senior group president at Fugro Gravity & research for Medley Global
manager at Fluor. Fluor Corporation, with Peter Magnetic Services, the Advisors.

74 OFFSHORE ENGINEER | may 2009 w w w . o f f s h o r e - e n g i n e e r. c o m

OE_M_4_NP_Page75 29/4/09 8:17 pm Page 1

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oe_M_4_NP_p076_maydiary 28/4/09 6:27 pm Page 76

EVENTS
20-26 June 2010 ISOPE. Conference,
Call for papers Beijing.
18/19 November IADC Well control Asia Pacific. Abstracts by 20 October.
Conference & exhibition, Bangkok. z www.isope.org
Abstracts by 22 May. 12-16 September 2010 World energy congress.
z www.iadc.org Forum & exhibition, Montreal.
23-25 March 2010 Intelligent energy. SPE Abstracts by 15 January 2010.
conference & exhibition, Utrecht. z www.wecmontreal2010.ca/papers
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and also calls for papers to: Global Pacific & Ptns; conference & exhibition, z International associations
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diary Contact Paul Holthus, World

Ocean Council;
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+1 808 277 9008; September Confirmed participants
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maximising understanding & 16/17 Tight gas completions. SPE exhibition, Cartagena de Association (OGP),
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www.spe.org/events 16-19 Brasil offshore. Conference 8-11 Offshore Europe. Conference Aquaculture Alliance,
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exhibition, Abu Dhabi. www.brasiloffshore.com www.offshore-europe.co.uk Independent Tanker Owners,
www.gastech.co.uk 17/18 IADC World drilling. 15/16 Gas infrastructure world. International Association of
26/27 Southern North Sea Conference & exhibition, Conference, Baku. Contact Drilling Contractors (IADC),
decommissioning. Oil & Gas UK Dublin. Contact Anne Otten; Alex Williamson, Terrapin; and International Energy
conference, Newcastle. +31 24 675 2252; +44 20 7092 1498; Agency: Ocean Energy
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27-29 Formation damage. 8th 17-19 Multiphase production www.terrapinn.com/2009/gascaspian The Sustainable Ocean
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June Szymanski, Purvin & Gertz; www.rao-offshore.com renewable energy, and other
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Azerbaijan. www.purvinggertz.com www.isope.org ‘Reducing risk, increasing
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3/4 Sub-Saharan offshore. Forum, London. Contact Yang Conference & exhibition, through collaboration’, the
Conference, Luanda, Angola. Zhang, IBC; Amsterdam. Contact Anne Sustainable Ocean Summit
www.acius.net [email protected] Otten; +31 24 675 2252; will focus on addressing
8-11 Balancing global resources. 23-26 MIOGE/Russian petroleum & www.iadc.org marine environmental
EAGE annual meeting gas congress. Conference & 23/24 Valve World Asia. challenges in ways that
including SPE Europec exhibition, Moscow. Conference & exhibition, support sustainable
conference & exhibition, www.mioge.com Suzhou, China. development and responsible
Amsterdam. 29-1 July Next generation LNG. www.valve-world.net business operations.
www.eage.org/events Conference, Singapore. 29 IADC Advanced rig technology. Conference sessions will
www.spe.org www.cwclng.com/asiapacific Conference, Houston. Contact develop World Ocean Council
10-12 OGA 2009. Conference & 29-2 July Deepwater challenge. Anne Otten; +31 24 675 2252; programs to address shared
exhibition, Kuala Lumpur. ISOPE international deep www.iadc.org industry challenges in the
Contact MES; ocean technology symposium, 29/30 Alaska natural gas value- marine environment.
+603 4041 0311; Beijing. added manufacturers. Conference, For further details, go to
[email protected]; [email protected] Anchorage. www.oceancouncil.org
www.oilandgas-asia.com www.isope.org www.AKnaturalgas.com

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 Petroleum Exhibition
PECOM 2009 & Conference of Mexico
November
Novem ber 17~19, 2009
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Villahermosa,
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2009

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w w w . o f f s h o r e - e n g i n e e r. c o m OFFSHORE ENGINEER | may 2009 81
oe_M_4_p082_last word 28/4/09 6:10 pm Page 82

EBB AND FLOW

‘The Nabucco project is proving a prime
example of how coherent EU policies, in this
case the key one of energy, are being
undermined by national self-interest.’
by Prof Michael J
Economides and
Peter Glover

Fifth columnists in the EU pipeline are forging ahead. Nord Stream received a further boost in

T
he $10 billion Nabucco pipeline story reads like a
Bourne-style political thriller. Since its conception in the March when Turkmenistan and Kazakhstan agreed to press
early 1990s the project’s narrative has been full of ahead with the Russian-backed pipeline along the Caspian Sea
international intrigue geared to helping Europe plot its escape coast.
from the ‘tyranny’ of Russian energy supremacy. The pipeline, But even with these basic ‘external’ problems aside, the
carrying natural gas, is supposed to run from Turkey through Nabucco project is proving a prime example of how coherent EU
the Balkans, linking into the European pipeline system. But policies, in this case the key one of energy, are being
almost two decades on we are still not at chapter one and the undermined by national self-interest. That the chief economic
future remains uncertain in no small part due to the sabotaging and energy interests of Germany, Europe’s largest economy, lie
efforts of the EU’s anti-Nabucco ‘fifth column’: Germany. beyond the EU, however, doesn’t take much figuring.
For the present, after a two-day EU economic crisis summit in Chancellor Merkel was forced to cut a deal with the German
Brussels this March first removed then reinstated Nabucco in Green Party to phase out all of its 20+ nuclear power plants to
its ‘priority’ energy project list, construction remains scheduled win national power. That political pact left Germany even more
for 2011. Though German dependent on Russian hydrocarbon imports than other parts of
objections to Nabucco’s Europe. So while Germany provides tacit support to the EU’s
inclusion in the EU’s championing of energy diversification, it has steadily pursued a
Euro5 billion ‘anti-crisis’ policy geared to building ever-closer national energy ties with
energy stimulus package Russia. The Nord Stream pipeline will link Russia and Germany
were overcome, the summit directly via the Baltic. However Putin’s Russia utilizes its
allotted a pittance of only ‘energy imperialism’ weapon against eastern European EU
Euro200 million. But while states, or indeed other European nations, it appears that
Nabucco has survived this Germany wants to be in a position to ‘make its own
round, its troubles are far arrangements’ with Russia.
from over. Former German Chancellor Gerhard Schroder is chairman of
To begin with, problems the Nord Stream Shareholders’ Committee. And Schroder has
over viable sources of gas been earning his Nord Stream pay check. While Gazprom owns
have been plaguing Nabucco a controlling 51% of Nord Stream, German energy majors E.On
from the start. and BASF own 20% each. Dutch company Gasunie – it was The
Turkmenistan’s enormous Netherlands who sided with Germany to get Nabucco
reserves are considered one downgraded at the recent summit – holds the other 9%. That
option. But Turkmenistan’s Nabucco threatens Gazprom’s energy, and thus Vladimir Putin’s
natural gas distribution geopolitical, interests is clear. With gas exports to Europe having
operation is largely managed by Russia’s Gazprom. Whether the declined by 40% since the beginning of 2009, Gazprom has
country’s latest massive gas discovery at the South Yolotan- developed, in Germany, a major ally at the heart of the EU to
Osman field will come under Russian management too, or ‘assist’ Russian interests. It’s a growing relationship that might
whether the gas will eventually head west or east – go some way to explaining Germany’s surprisingly strong
Turkmenistan is developing growing links with China – is still opposition, even threatening an EU veto, to Georgia and the
unclear. For the gas to head west would also mean building an Ukraine’s United States-backed bid for NATO membership in
additional Trans-Caspian link. Then there are the security April 2008.
problems associated with running the pipeline through transit Given the EU’s sense of urgency in achieving greater energy
nations, especially Turkey and Georgia. diversification, it now finds itself caught in a pincer movement
Iran has more than enough gas to keep Nabucco busy and of external geopolitical realities and internal national self-
Tehran, with the world’s second largest reserves of natural gas, interest. The EU may soon be forced to admit defeat and raise
is keen to buy into the lucrative European market. But Nabucco the white flag over Nabucco. But however the Russo-EU energy
badly needs a reliable provider, and Iran’s notoriously plot-line plays out, Germany, Europe’s largest economy, is
unreliable production track record and the uncertain revealing only too clearly that sticking to the Eurocratic official
geopolitical situation over its nuclear intentions are barriers to text is one thing, conspiring with Mr Putin over the subtext –
new investment. With its European aspirations stuck in the national self-interest when it comes to energy security – is
geopolitical mud for the foreseeable future Iran too has turned another. The rest of Europe, take note. OE
its eyes east, and is currently cutting energy deals with Beijing. z Michael J Economides is a professor at the Cullen College of
Meanwhile Nabucco’s competition, the Gazprom-backed Nord Engineering, University of Houston, and editor-in-chief of the
Stream (linking Russia and Europe via the Baltic) and South Energy Tribune. Peter Glover is a European-based writer. The views
Stream (linking Russia to Italy and Austria) pipeline projects expressed in this column do not necessarily reflect OE’s position.

82 OFFSHORE ENGINEER | may 2009 w w w . o f f s h o r e - e n g i n e e r. c o m

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 Baker Hughes Incorporated Advancing Reservoir Performance

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